Document of The World Bank Public Disclosure Authorized Report No: ICR00001793 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-37240) ON A CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 3.4 MILLION (US$4.48 MILLION EQUIVALENT) TO THE INDEPENDENT STATE OF SAMOA FOR A TELECOMMUNICATIONS AND POSTAL SECTOR REFORM PROJECT Public Disclosure Authorized NOVEMBER 1, 2011 Public Disclosure Authorized Transport, Water, Telecommunications and Information Communication Technologies Papua New Guinea, Pacific Islands and Timor-Leste East Asia and Pacific Region CURRENCY EQUIVALENTS Exchange Date Effective (10/24/2010) Currency Unit = Western Samoa Tala 1.00 WST = US$0.44 1.00 US$ = 2.28 WST FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS $ All dollars are in United States dollars unless otherwise indicated APL Adaptable Program Loan GoS Government of Samoa IDA International Development Association KPI Key performance indicator MCIT Ministry of Information Communication Technologies M&E Monitoring and evaluation MoF Ministry of Finance OBA Output-based aid OoR Office of the Regulator PAD Project Appraisal Document PDO Project development objective PMU Project Management Unit TSC Telecommunications Samoa Cellular Vice President: James W. Adams Country Director: Ferid Belhaj Sector Manager: Philippe Dongier Project Team Leader: Isabelle Huynh ICR Team Leader: Arturo Muente-Kunigami - i - SAMOA Telecommunications and Postal Sector Reform Project CONTENTS 1. Project Context, Development Objectives and Design ............................................ 1 2. Key Factors Affecting Implementation and Outcomes ............................................ 7 3. Assessment of Outcomes ........................................................................................ 10 4. Assessment of Risk to Development Outcome ...................................................... 16 5. Assessment of Bank and Borrower Performance ................................................... 17 6. Lessons Learned ..................................................................................................... 19 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ........ 20 Annex 1. Project Costs and Financing ....................................................................... 21 Annex 2. Outputs by Component ............................................................................... 22 Annex 3. Economic and Financial Analysis .............................................................. 25 Annex 4. Bank Lending and Implementation Support/Supervision Processes .......... 32 Annex 5. Beneficiary Survey Results ........................................................................ 34 Annex 6. Stakeholder Workshop Report and Results ................................................ 35 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR .................. 36 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders .................... 37 Annex 9. Announcement of Provider for the Second Digital Cellular License ......... 38 Annex 10. List of Supporting Documents ................................................................... 43 MAP IBRD 30290 - ii - A. Basic Information Samoa - Telecommunications and Country: Samoa Project Name: Postal Sector Reform Project Project ID: P075739 L/C/TF Number(s): IDA-37240 ICR Date: 11/01/2011 ICR Type: Core ICR INDEPENDENT STATE Lending Instrument: TAL Borrower: OF SAMOA Original Total XDR 3.40M Disbursed Amount: XDR 2.66M Commitment: Revised Amount: XDR 2.66M Environmental Category: C Implementing Agencies: Ministry of Finance SamoaTel Ministry of Information and Communication Technology Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 01/16/2001 Effectiveness: 04/28/2003 04/28/2003 Appraisal: 03/25/2002 Restructuring(s): 09/21/2009 Approval: 12/17/2002 Mid-term Review: 11/15/2005 10/24/2005 Closing: 04/15/2008 02/28/2011 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Moderately Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Satisfactory - iii - Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any time Quality of Supervision No None (Yes/No): (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Law and justice 10 35 Postal services 40 20 Telecommunications 50 45 Theme Code (as % of total Bank financing) Other financial and private sector development 25 30 Regulation and competition policy 50 40 Rural services and infrastructure 25 30 E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jemal-ud-din Kassum Country Director: Ferid Belhaj Klaus Rohland Sector Manager: Philippe Dongier Pierre A. Guislain Project Team Leader: Isabelle Huynh Carlo Maria Rossotto ICR Team Leader: Arturo Muente Kunigami ICR Primary Author: Andrea Ruiz-Esparza - iv - F. Results Framework Analysis Project Development Objectives The project's objective is to assist the Government of Samoa (GOS) in implementing a comprehensive sector reform agenda focused on: (a) introducing competition and private participation in telecommunications and postal sectors; (b) advancing regulatory reform, and developing sector institutional capacity; and (c) extending access to basic communications, postal services, and information technologies. Revised Project Development Objectives Project Development Objective did not change. (a) PDO Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Increase total number of customers (fixed and mobile) 20,000 in 2004 to 46,000 by end Indicator 1 : 2008 Value quantitative or 168,000 Qualitative) Date achieved 02/28/2011 Comments (incl. % achievement) Indicator 2 : Increase number of Internet subscribers 4,500 in 2004 to 10,000 by end of 2008 Value quantitative or 12,000 Qualitative) Date achieved 02/28/2011 Comments (incl. % achievement) Increase number of telecommunication customers in rural areas 2,400 in 2004 to 6,000 Indicator 3 : by end 2008. Value quantitative or 57,943 Qualitative) Date achieved 02/28/2011 Comments (incl. % achievement) Increase number of post office mail boxes per 100 inhabitant 5.58 in 2004 to 10.59 by Indicator 4 : end 2008 Value 2.8 quantitative or - v - Qualitative) Date achieved 02/28/2011 Comments (incl. % achievement) Indicator 5 : Increase number of letter item/inhabitant from 4.5 to 12.2 by end 2008 Value quantitative or 3.0 Qualitative) Date achieved 02/28/2011 Comments (incl. % achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised Target approval Completion or Values documents) Target Years Indicator 1 : Second digitial cellular license Value (quantitative Awarded April 2006 or Qualitative) Date achieved 04/28/2006 Comments (incl. % achievement) Indicator 2 : New interconnection regime Value Interconnection (quantitative regime in place or Qualitative) Date achieved 10/29/2010 Comments (incl. % achievement) Indicator 3 : New spectrum monitoring and frequency allocation Value (quantitative SM system in place or Qualitative) Date achieved 10/29/2010 Comments (incl. % achievement) Indicator 4 : New Postal Law and Regulation Value Postal Bill and Postal (quantitative Policy endorsed by - vi - or Qualitative) Parliament Date achieved 12/31/2010 Comments (incl. % achievement) Indicator 5 : SamoaTel Privitized Value Privatizatin (quantitative transaction finalized or Qualitative) Date achieved 03/31/2011 Comments (incl. % achievement) G. Ratings of Project Performance in ISRs Date ISR Actual Disbursements No. DO IP Archived (USD millions) 1 12/20/2002 Satisfactory Satisfactory 0.00 2 06/23/2003 Satisfactory Satisfactory 0.00 3 12/18/2003 Satisfactory Satisfactory 0.15 4 06/17/2004 Satisfactory Satisfactory 0.15 5 12/15/2004 Satisfactory Satisfactory 0.39 6 05/25/2005 Satisfactory Moderately Satisfactory 0.50 7 12/14/2005 Satisfactory Moderately Satisfactory 0.55 8 04/22/2006 Satisfactory Moderately Satisfactory 0.93 9 02/15/2007 Moderately Satisfactory Moderately Satisfactory 1.32 10 07/27/2007 Moderately Satisfactory Moderately Satisfactory 1.83 11 03/06/2008 Moderately Satisfactory Moderately Satisfactory 2.39 12 09/10/2008 Moderately Satisfactory Moderately Satisfactory 2.58 13 06/11/2009 Moderately Satisfactory Moderately Satisfactory 2.79 14 11/20/2009 Moderately Satisfactory Moderately Satisfactory 3.20 15 05/28/2010 Moderately Satisfactory Moderately Satisfactory 3.23 H. Restructuring (if any) ISR Ratings at Amount Board Restructuring Restructuring Disbursed at Reason for Restructuring & Key Approved PDO Date(s) Restructuring Changes Made Change DO IP in USD millions 09/21/2009 MS MS 3.19 - vii - I. Disbursement Profile - viii