FOR OFFICIAL USE ONLY Report No: PAD3724 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON PROPOSED CREDITS IN THE AMOUNT OF SDR 20.5 MILLION (US$28.0 MILLION EQUIVALENT) TO THE COMMONWEALTH OF DOMINICA IN THE AMOUNT OF US$8.0 MILLION TO GRENADA Public Disclosure Authorized IN THE AMOUNT OF US$20.0 MILLION TO ST. LUCIA IN THE AMOUNT OF US$30.0 MILLION TO ST. VINCENT AND THE GRENADINES AND A PROPOSED GRANT IN THE AMOUNT OF SDR 5.9 MILLION (US$8.0 MILLION EQUIVALENT) TO THE ORGANISATION OF EASTERN CARIBBEAN STATES (OECS) FOR A Public Disclosure Authorized CARIBBEAN DIGITAL TRANSFORMATION PROJECT (“DIGITAL CARIBBEAN”) JUNE 1, 2020 Digital Development Global Practice Latin America and Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of Public Disclosure Authorized their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective April 30, 2020 Currency Unit = Eastern Caribbean Dollar (EC$) EC$2.7 = US$1 US$1 = SDR 0.73 FISCAL YEAR July 1 – June 30 – Commonwealth of Dominica January 1 – December 31 – Grenada April 1 – March 31 – Saint Lucia January 1 – December 31 – Saint Vincent and the Grenadines July 1 – June 30 – Organisation of Eastern Caribbean States Regional Vice President: J. Humberto Lopez (Acting) Country Director: Tahseen Sayed Khan Global Director: Boutheina Guermazi Practice Manager: Nicole Klingen Task Team Leader(s): Casey Torgusson, Peter McConaghy ABBREVIATIONS AND ACRONYMS CAF Corporación Andino de Fomento (Andean Development Corporation), commonly known in English as Development Bank of Latin America CapEx Capital Expenses CARCIP Caribbean Regional Communications Infrastructure Program CARDTP Caribbean Digital Transformation Project CARICOM Caribbean Community CBA Cost-Benefit Analysis CERT Computer Emergency Response Team CTU Caribbean Telecommunications Union DFS Digital Financial Services DG4R Digital Government for Resilience E&S Environmental and Social ECCB Eastern Caribbean Central Bank ECCU Eastern Caribbean Currency Union ECTEL Eastern Caribbean Telecommunications Authority EGRIP Electronic Government for Regional Integration Program EPIC Entrepreneurship Program for Innovation in the Caribbean ESCP Environmental and Social Commitment Plan ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESS Environmental and Social Standard FM Financial Management GDP Gross Domestic Product GHG Greenhouse Gases GITS Government Information Technology Services GNI Gross National Income GOCD Government of Commonwealth of Dominica GOG Government of Grenada GOSL Government of St. Lucia GOSVG Government of St. Vincent and the Grenadines GRM Grievance Redress Mechanism GRS Grievance Redress Service HMIS Health Management Information System ICT Information and Communication Technology ID Identification IDA International Development Association IEG Independent Evaluation Group IFR Interim Financial Report IMPACS Implementation Agency for Crime and Security IPF Investment Project Financing IPPF Indigenous Peoples Planning Framework IPS Instant Payment System IRR Internal Rate of Return IST Implementation Support Team IT Information Technology ITSD Information Technology Services Division LAC Latin America and the Caribbean LMP Labor Management Procedures M&E Monitoring and Evaluation MB Mega Bytes MOF Ministry of Finance MOPWDE Ministry of Public Works and Digital Economy MPID Multi-Purpose Identification MSME Micro, Small, and Medium Enterprises NCPC National Competitiveness and Productivity Council NPV Net Present Value NTRC National Telecommunications Regulatory Commission OECS Organisation of Eastern Caribbean States OpEx Operating Expenses PCU Project Coordination Unit PIU Project Implementation Unit POM Project Operational Manual PPP Public-Private Partnership PPSD Project Procurement Strategy for Development PSC Project Steering Committee PSIPMU Public Sector Investment Programme Management Unit PSMD Public Sector Modernization Department QoS Quality of Service RPF Resettlement Policy Framework RPOC Regional Project Operations Committee RPIU Regional Project Implementation Unit RPS Regional Partnership Strategy SAI Supreme Audit Institution SEP Stakeholder Engagement Plan STEM Science, Technology, Engineering and Mathematics STEP Systematic Tracking and Exchanges in Procurement SVG St. Vincent and the Grenadines UIN Unique Identification Number US$ United States Dollars WB World Bank WBG World Bank Group Wi-Fi Wireless Fidelity TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT .................................................................................................... 10 A. Regional Context ............................................................................................................................ 10 B. Sectoral and Institutional Context .................................................................................................. 11 C. Relevance to Higher Level Objectives ............................................................................................. 15 II. PROJECT DESCRIPTION .................................................................................................. 17 A. Project Development Objective ..................................................................................................... 17 B. Project Components ....................................................................................................................... 18 C. Project Beneficiaries ....................................................................................................................... 23 D. Results Chain .................................................................................................................................. 24 E. Rationale for Bank Involvement and Role of Partners ................................................................... 24 F. Lessons Learned and Reflected in the Project Design .................................................................... 25 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 26 A. Institutional and Implementation Arrangements .......................................................................... 26 B. Results Monitoring and Evaluation Arrangements......................................................................... 28 C. Sustainability ................................................................................................................................... 29 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 30 A. Economic and Financial Analysis .................................................................................................... 30 B. Fiduciary .......................................................................................................................................... 31 C. Legal Operational Policies ............................................................................................................... 32 D. Environmental and Social ............................................................................................................... 32 E. Grievance Redress Services ............................................................................................................ 34 V. KEY RISKS ..................................................................................................................... 34 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 36 ANNEX 1: Implementation Arrangements and Support Plan ................................................. 58 ANNEX 2: Regional Level Program Details ............................................................................ 66 ANNEX 3: National Level Program Details – Dominica .......................................................... 71 ANNEX 4: National Level Program Details – Grenada ............................................................ 78 ANNEX 5: National Level Program Details – St. Lucia ............................................................ 83 ANNEX 6: National Level Program Details – St. Vincent and the Grenadines (SVG) ................ 89 ANNEX 7: Detailed Economic and Financial Analysis ............................................................. 96 ANNEX 8: Building Resilience to Climate and Health Events in the Eastern Caribbean Region through Digitalization ........................................................................................................ 103 Page 1 of 104 The World Bank Caribbean Digital Transformation Project (P171528) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Caribbean, Dominica, Grenada, St. Lucia, St. Caribbean Digital Transformation Project Vincent and the Grenadines Project ID Financing Instrument Environmental and Social Risk Classification Investment Project P171528 Moderate Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile