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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: T7763-TG
TECHNICAL ANNEX
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 20.1 MILLION
(US$ 30 MILLION EQUIVALENT)
TO THE
REPUBLIC OF TOGO
FOR THE WEST AFRICA REGIONAL COMMUNICATIONS INFRASTRUCTURE
PROGRAM - TOGO PROJECT
IN SUPPORT OF THE SECOND PHASE (APL 2)
OF A US$300 MILLION EQUIVALENT
WEST AFRICA REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM
May 02, 2013
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
Bank authorization.
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i
CURRENCY EQUIVALENTS
(Exchange Rate Effective March 31, 2013)
Currency Unit = SDR
SDR 0.67 = US$1
US$ 1,50 = 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 Submarine Cable
ADSL Asymmetric Digital Subscriber Line
AICD Africa Infrastructure Country Diagnostic
AIE
Agence de l’Informatique de l’Etat
National IT Agency
ANSR Agence Nationale du Spectre des Radio-fréquences
National Radio-frequency Spectrum Agency
APL Adaptable Program Loan
ARAP Abbreviated Resettlement Action Plan
ARCE
Autorité de Régulation des Communications Electroniques
Regulatory Authority for Electronic Communications
ART&P Autorité de Régulation des Télécommunications et de la Poste
Regulatory Authority for Post and Telecommunications
BPO Business Process Outsourcing
CAPEX Capital Expenditure
CARCIP Caribbean Regional Communications Infrastructure Program
CAS Country Assistance Strategy
CCMP Comité de Contrôle des Marchés Publics
Internal public procurement control committee
CDMA Code Division Multiple Access
CERT Computer Emergency Response Team
CFA Communauté Financière Africaine
Africa Financial Community
CPMP Comité de Pilotage des Marchés Publics
Public Procurement Steering Committee
CQS Consultant’s Qualification
ii
DA Designated Account
DNCMP Direction Nationale de Contrôle des Marchés Publics
National Department of Public Procurement Control
DSL Digital Subscriber Line
ECOWAS Economic Community of West African States
ESIA Environmental and Social Impact Assessment
ESMF Environmental and Social Management Framework
ESMP Environmental and Social Management Plan
FM Financial Management
FY Fiscal Year
Gbit/s Gigabit per second
GDP Gross Domestic Product
GEF Global Environment facility
GFDRR Global facility for Disaster Reduction and Recovery
GoT Government of Togo
GSM Global System for Mobile Communications
HIPC Heavily Indebted Poor Countries
IBRD International Bank for Reconstruction and Development
IC Individual Consultant
ICB International Competitive Bidding
ICT Information and Communication Technology
IDA International Development Association
IFC International Finance Corporation
IFR Intermediate Financial Reports
IMF International Monetary Fund
IP Internet Protocol
IPR Independent Procurement Review
IRR Internal Rate of Return
IRU Indefeasible Right of Use
ISA International Standards on Audit
ISP Internet Service Provider
IT Information Technology
ITES IT Enabled Services
ITU International Telecommunication Union
IXP Internet Exchange Point
Kbit/s Kilobit per second
LCB Least Cost Bidding
LCS Least Cost Selection
LDCF Least Developed Countries Fund
M&E Monitoring and Evaluation
Mbit/s Megabit per Second
iii
MDGs Millennium Development Goals
MDRI Multilateral debt Relief Initiative
MEO Medium Earth Orbit
MIGA Multilateral Investment Guarantee Agency
MIS Management Information System
MoF Ministry of Finance
MPT Ministry of Post and Telecommunications
NCB National Competitive Bidding
NICI National Information Communications Infrastructure
NPV Net Present Value
OP Operational Manual
PCN Project Concept Note
PDO Project Development Objectives
PEMFAR Public Expenditure Management and Financial Accountability Review
PIM Project Implementation Manuel
PIU Project Implementation Unit
POM Project Operation Manual
PPA Project Preparation Advance
PPF Project Preparation Facility
PPIAF Public-Private Infrastructure Advisory Facility
PPP Public-Private Partnership
PPR Post Procurement Review
PSD Private Sector Development
QCBS Quality and Cost Based Selection
RAP Resettlement Action Plan
RCIP Regional Communications Infrastructure Program
RFP Request for Proposal
RIAS Regional Integration Assistance Strategy for Sub-Saharan Africa
RRP Resettlement and Rehabilitation Plan
SAT-3 South Atlantic Three Cable
SOE Statement of Expenditures
SPV Special Purpose Vehicle
SSS Single Source Selection
SYSCOHADA Système Comptable OHADA
TA Technical Assistance
ToR Terms of Reference
UEMOA Union Economique et Monétaire Ouest Africaine
West Africa Economic and Monetary Union
UNDP United Nations Development Program
VoIP Voice Over Internet Protocol
VPN Virtual Private Network
iv
WACS West Africa Cable System
ARCIP West Africa Regional Communications Infrastructure Project
WBG World Bank Group
WiFi Wireless Fidelity
WiMax Worldwide Interoperability for Microwave Access
Regional Vice President
Regional Integration Director:
Makhtar Diop
Colin Bruce
Country Director: Madani M. Tall
Sector Director: Jose Luis Irigoyen
Senior Manager: Chris Allen Vein
Sector Manager:
Task Team Leader for WARCIP 2 and
WARCIP Togo:
Randeep Sudan
Boutheina Guermazi
v
TOGO
WARCIP Togo
TABLE OF CONTENTS
Page
I. STRATEGIC CONTEXT .................................................................................................1
A. Country Context ............................................................................................................. 1
B. Sectoral and Institutional Context .................................................................................. 2
C. Higher Level Objectives to which the project Contributes ............................................ 5
II. PROJECT DEVELOPMENT OBJECTIVES (PDO) ....................................................7
A. PDO ................................................................................................................................ 7
B. Project Beneficiaries ....................................................................................................... 7
C. PDO Level Results Indicators ........................................................................................ 8
III. PROJECT DESCRIPTION ..............................................................................................8
A. Project Components ....................................................................................................... 8
B. Project Financing ............................................................................................................ 9
C. Program Objective and Phases ..................................................................................... 10
D. Lessons Learned and Reflected in the Project Design ................................................. 11
IV. IMPLEMENTATION .....................................................................................................12
A. Institutional and Implementation Arrangements .......................................................... 12
B. Results Monitoring and Evaluation .............................................................................. 13
C. Sustainability ................................................................................................................ 13
V. KEY RISKS AND MITIGATION MEASURES ..........................................................14
A. Risk Ratings Summary Table ....................................................................................... 14
B. Overall Risk Rating Explanation .................................................................................. 14
VI. Appraisal summary .........................................................................................................14
A. Economic and financial Analysis ................................................................................. 14
B. Technical ...................................................................................................................... 15
C. Financial Management ................................................................................................. 16
D. Procurement .................................................................................................................. 17
E. Social and Environment ............................................................................................... 17
F. Effectiveness conditions and Covenants .......................................................................19
vi
Annex 1: Results Framework and Monitoring.........................................................................23
Annex 2: Detailed Project Description......................................................................................25
Annex 3: Implementation Arrangements.................................................................................28
Annex 4-Operational Risk Assessment Framework (ORAF) ...............................................46
Annex 5: Implementation Support Plan..................................................................................50
Annex 6: Economic and Financial Analysis.............................................................................53
1
I. STRATEGIC CONTEXT
A. Country Context
1. Located in the Gulf of Guinea between Benin and Ghana, Togo is one of the smaller
countries in Africa. Also bounded by Burkina Faso to the north, Togo is a small country with
an estimated surface area of 56 600 square km and a population of 6.5 million with an annual
population growth of about 2.84%. Togo is one of the poorest countries in the world, with a per
capita GDP of US$570 in 2011 (according to the World Bank's Atlas methodology), and a
ranking of 139 out of 169 countries in the 2010 UNDP Human Development Index.
2. The main economic activities are mining, agriculture, sea port activities and re-
exporting. Agriculture employs two-thirds of the population and accounts for about 45% of
gross domestic product (GDP). The secondary sector, including phosphates, cement
manufacturing, construction and energy employs about 12% of the population and accounts for
about 22% of GDP. Services, dominated by commerce and transport, employ about 21% of the
population and generate about 33% of GDP. The most important exports are cement and clinker
which go entirely to West African regional markets where demand remains strong, followed by
cotton, both processed and marketed by public enterprises. Togo also produces cash crops,
mainly coffee and cocoa, and has a considerable agricultural potential.
3. Economic growth accelerated slightly in 2011. Togo’s economic growth, which was
estimated at 3.7% for 2010, rose to 3.9% in 2011, thanks to satisfactory rainfall, improved power
supply and an increase in the port activity. It is expected to reach 5.2% in 2012, spurred, among
other things, by new investments in infrastructure and higher government spending, and thanks
to lower debt-servicing costs following debt relief, and continuing structural reforms. The
recovery in the cotton sector, the buoyant activity at the Port of Lomé (especially the increase in
transit trade), and the public works launched by the government also contribute to this growth
performance. In December 2010, Togo successfully reached the completion point under the
Enhanced HIPC Initiative, and also qualified for additional debt relief under the Multilateral
Debt Relief Initiative (MDRI).
4. Togo has achieved considerable progress during the past three years, but significant
institutional and economic challenges remain. The rise in oil and food prices, the severe
flooding in 2008 and 2010, and the global recession in 2009 adversely impacted Togo’s
economy. With regard to the Millennium Development Goals, progress has been achieved toward
reaching the goals of universal primary education and the combat of HIV/AIDS. However, Togo
is unlikely to meet six of the eight goals by the 2015 deadline. The country’s business
environment remains difficult, as highlighted by the World Bank’s “Doing Business 2012”
report, which ranks Togo 162nd (out of 183 countries).
2
B. Sectoral and Institutional Context
5. Togo’s telecommunication sector has significant untapped potential. With a mobile phone
penetration in 2012 of 53.93%, and a growth rate of around 13.5 per cent, Togo’s mobile
telephony sector is not living up to its potential. Togo's mobile market continues to be run under
a duopoly regime with Togo Cellular, the mobile unit of fixed-line incumbent operator Togo
Telecom, and Etisalat-owned Moov. Togo Cellular has a subscriber base of around 1.6 million at
the end of December 2012, and a market share of 51%. Second-ranked Moov had around 1.5
million subscribers at the end of December 2012, a market share of 49%. Togo Cellulaire enjoys
87 per cent of the volume (dialled-out minutes) and 79 per cent of turnover. Currently there are
only about 76,678 mobile 3G subscribers, all on Togo Cellular (MOOV has yet to provide 3G
services).
6. Togo's fixed voice and data/Internet market is dominated by state-owned incumbent
operator Togo Telecom. The operator offers ADSL broadband and CDMA-based narrowband
services to corporate and residential users. There were 240,512 fixed-line connections in Togo at
the end of December 2011, a penetration rate of 3.8%. Togo Telecom launched its CDMA-based
wireless local loop service under the brand Illico in 2006. The service's good coverage and low
prices have made it especially popular in rural areas. The service also allows users to use e-mail
and access Internet pages at low speeds on their mobile phones. There were 5,081 ADSL and
171,174 Illico subscribers at the end of 2011. There is only one private Internet provider – Cafe
Informatique – which provides WIFI connectivity, mainly to corporate clients.
7. The number of Internet subscribers remains very limited in Togo and growth in the
Internet industry is still slow and highly constrained by limited access and high cost to end
users. Togo had around 371,000 regular Internet users and 77,826 broadband subscriptions, with
internet and broadband penetration rates of 6% and 0.6% respectively. This is expected to
increase significantly over the next few years as a result of the recent connection to the West
Africa Cable System (WACS) submarine cable, which now lands in Lomé, the extension of the
Togo Telecom's national fibre backbone and introduction of 3G services in the market. Currently,
Togolese consumers pay higher rates for Internet services than consumers in neighbouring
countries. As of June 30, 2012, business users and private citizens have to pay US$160 per
month for fixed broadband Internet access, while consumers in Senegal and Ghana pay only
US$29 and US$64 respectively. The cost of dedicated 2 Mbps link is as high as 2,348
US$/month. The high cost of broadband Internet access prevents Togo from reaping the benefits
of the ICT revolution. High cost can be attributed to several factors such as (i) the high cost of
international bandwidth, especially before Togo Telecom was able to secure Togo’s first
connection to a submarine cable; (ii) the lack of an Internet Exchange Point (IXP) to reduce the
cost of local Internet traffic; (iii) a monopoly structure for access to international capacity; and
(v) limited regulatory activity to promote more competition or fair and equitable access to
bandwidth. These constraints are currently being tackled by WARCIP project.
3
8. The connectivity status of Togo has improved dramatically in the last few years thanks
to investments by Togo Telecom, but fixed access remains solely owned and managed by
Togo Telecom. Togo is now connected to WACS submarine cable with a landing station in
Lomé. The 14, 500 km WACS cable has an ultimate capacity of 5.12Tbps. The cable became
operational in Togo in May 11, 2012. It links countries in Southern Africa, West Africa and
Europe, providing direct access to other global submarine cables. Specifically the WACS system
links South Africa to the UK with landings in Namibia, Angola, the Democratic Republic of
Congo, Republic of Congo, Cameroon, Nigeria, Ghana, Cote d’Ivoire, Cape Verde, the Canary
Islands and Portugal. The network cost approximately CFA325 billion (USD634 million) for the
twelve countries participating in the rollout, of which Togo contributed CFA13 billion (USD25.4
million), excluding charges for delivery and distribution of its bandwidth locally. As the only
financier of the cable landing in Togo, Togo Telecom has exclusive rights to the landing station
and to WACS capacity. In addition Togo Telecom has rolled-out a national backbone up to the
country's borders, ensuring the connectivity of Togo with Benin, Burkina Faso and Ghana, and
creating additional access to other submarine cables via neighbouring countries (ACE, SAT-3,
Glo-1 and Main One). The fibre-optic network across Togo is expected to create a high capacity,
reliable backhaul system, helping to connect landlocked countries in West Africa to international
submarine cable systems through Togo Telecom's cable landing station. However, although Togo
Telecom's investment in WACS and its national backbone has created a reliable and potentially
cost-effective national and international infrastructure, as a monopoly, Togo Telecom has no
incentive lower prices, and the benefits of the investment for the country will not be fully
realised unless the capacity is available to all operators on an equal basis.
9. The GoT is now starting to implement a comprehensive ICT sector reform process. The
Government adopted a Sectoral Strategy on Promoting Information and Communication
Technologies (ICT) 2011-2015 in May 2011. This strategy lays down an ambitious vision for the
sector focusing on free market forces and strengthening the legal and regulatory framework. The
strategy intends to develop the telecom infrastructure (which includes investments in
international and regional/national connectivity) and to stimulate reliance on ICT. The stated
objective is to increase the fixed and mobile phone penetration rates to 60 per cent by 2015 and
the Internet penetration rate to 15 per cent, from less than 1 per cent today. The strategy is based
on a holistic approach around four pillars: (1) Strengthen legal and regulatory framework and
regulation; (2) promotion of free market competition; (3) Develop infrastructure; and (4)
Improve and stimulate usage of ICT.
10. A New Legal framework was approved on December 17, 2012. The Electronic
Communications Law (Law No. 2012-018), modified by Law No. 2013-003 of February 19,
2013, repeals the outdated Law No. 98-005 and constitutes an important development in the
sector, reflecting latest technological and market developments, as well as ECOWAS Directives
and UEMOA additional Acts. The main objectives of the new law are to strengthen competition,
stimulate investment, increase access and improve regulation of the sector. The new law creates
a new converged regulator, the Autorité de régulation des communications éléctroniques,
(ARCE), which replaces ART&P as the sector regulator, and a new agency for the regulation of
4
radio spectrum, the Agence Nationale du Spectres des Radio Frequences (ANSR). The
Government is working on developing secondary legislation and drafting decrees for the
implementation of the new law.1
11. Government has adopted several reform priorities aimed at increasing competition and
levelling the playing field between different sector players. These reforms are unfolding
through policy and regulatory decisions and include (i) lowering the price of mobile
communications and bring it closer to regional benchmarks2, (ii) opening up the mobile sector to
more competition through issuing MVNO licenses3, (iii) moving to full competition in the
Internet sector with a plan to issue additional ISP licenses4 and (iv) starting the process of
restructuring of Togo Telecom5, (v) ensuring fair and equal access to the WACS submarine cable
capacity and (vii) lifting restrictions on building fiber optic transport infrastructure by licensed
operators6, and (viii) putting in place regulatory mechanisms to ensure fair competition and limit
market dominance in the sector. The different priorities are at different implementation phases.
Once fully implemented, these reforms are expected to have far reaching impacts on the sector.7
The reforms are initiated by the Government and supported by the Bank through multiple
instruments including budget support operation, technical Assistance and trust fund resources.
12. WARCIP Togo Project will focus on sectoral efficiency and improving the reach of
broadband networks at lower cost. The project proposes a mix of interventions covering
investment focused on improving connectivity through (a) establishment of a neutral carrier hotel
and national / regional IXP, where a market and a national / regional hub for capacity could be
established to provide an alternative to Togo Telecom, which would improve terms of access to
international capacity and lower costs through increased competition and (b) supply of bulk
international bandwidth capacity to ensure that international capacity is available to the country
at the lowest cost and highest quality, WARCIP Togo will provide resources for the launch of a
competitive tender to purchase high capacity bandwidth from neighbouring coastal countries to
be delivered at the neutral carrier hotel in the capital. By doing so, Togo will benefit from similar
conditions of access to connectivity (diversity of choice, low prices) as other countries in the
ECOWAS region. The project will also focus on creating an enabling environment through
technical assistance to strengthen the legal, regulatory and institutional framework to ensure
open access, create PPP frameworks and improve regulatory environment to increase
competition in the sector and improve overall sector efficiency.
1 The list of decrees currently under preparation with support of an international law firm includes, among others, decrees for the
establishment of ARCE and ANSR, decrees for open access to submarine cable capacity, infrastructure sharing, interconnection
and colocation, spectrum management and national roaming.
2 The prices have fallen by 30% between 2011 and 2013, from US$ 0.23/minute for on net calls to US$ 0.17/minute. Dropping
the prices to regional average was one of the telecom prior actions for the DPO operation.
3 The MVNO process was launched in September 2012. A shortlist of potential operators has been established
4 The ISP licensing process is expected to start following the study recently launched by the Ministry.
5 The procurement process for hiring auditors and for launching a study on strategic repositioning of Togo telecom reached
shortlisting stage.
6 The Government is currently negotiating standard 3 G licenses for TogoCell and Moov which will include the authorization to
operate their own international gateway and lifts earlier restrictions to build fiber infrastructure.
7 The different reforms priorities are at different implementation stages and have been linked to triggers in budget support
operation.
5
13. With a strong regional rationale, the WARCIP Togo project will contribute to the
creation of the ECOWAS regional telecommunications market, contributing further to
regional integration and economic growth. Like the other phases of the WARCIP program,
WARCIP Togo has a strong regional rationale. The implementation of the Adaptable Program
Loan (APL 2) would better integrate Togo within the region, allowing increased regional trade as
well as improving Togo’s opportunity to become more competitive internationally. Togo has a
particularly important geographic position in West Africa, enjoying a central position for
distributing capacity to its landlocked neighbours. Also, through its access to the WACS cable
system, the addition of Togo to the WARCIP program brings additional redundancy, creating
more competition between cable systems in the region (so far all previous WARCIP Phases
focused on the ACE cable8). If priced competitively, Togo’s facilities would provide important
alternative international routes in the region - for Burkina Faso in particular, but also potentially
as a backup route for Benin and Niger. While these countries all have other neighbours from
which to obtain international capacity, most of them will be likely route at least 20-30% of their
traffic via Togo to maintain their restoration links. In addition, the proposed carrier hotel will
create incentives for cross-border connections and local hosting, which will provide domestic
backup and secure alternate international routes via Ghana and Benin (which have 6 different
submarine cable landings between them). Aside from improving reliability, this also provides
competitive alternative routes to WACS, ensuring that domestic prices for international capacity
are kept low. This will give Togo a highly reliable and much more affordable ICT infrastructure,
which will also see demand from across the nation's borders. Connectivity financed under the
WARCIP program will thus contribute to a fully redundant regional network, allowing
landlocked countries to access alternative and competitive routes to submarine landing stations in
coastal countries9. This will lead to lower wholesale costs for connectivity throughout the region,
which will create the necessary environment for lower retail prices for consumers and
businesses.
C. Higher Level Objectives to which the project Contributes
14. WARCIP Togo project is aligned with the 2nd Interim Strategy Note (ISN) for the
period FY12-FY13. The overall objective of the proposed ISN is to support Togo’s program of
recovery from its long period of instability to promote growth and reduce poverty and will focus
on three main objectives: (a) Deepening the economic recovery process and promoting
sustainable development; (b) Supporting economic governance and transparency; and (c)
Addressing urgent poverty reduction and social needs. The operation will support objective (a) of
the ISN by improved access to and quality of productive infrastructure. It will also contribute to
objective (b) by improving through ICT the delivery of public services in similar conditions of
costs and quality throughout the country. Through purchase of capacity on fiber-based
8 The ACE submarine cable is connecting Europe with 13 countries along the West African coast (Mauritania, Senegal, Gambia,
Guinea, Sierra Leone, Liberia, Côte d'Ivoire, Ghana, Benin, Nigeria, Equatorial Guinea, Gabon, São Tomé).
9 The lack of regional/national competitive fiber infrastructure compared to the extent of supply and competition in submarine
cables is demonstrated by the fact that capacity from an African submarine landing station to Europe (costing $100-
$300/Mbps/month) is usually cheaper than the in-country national backbone capacity ($500-2000/Mbps/month). This trend is
accentuated considerably for landlocked countries, which have to pay for terrestrial transit across their neighbors to get to the
coast.
6
transmission networks to connect targeted users (e.g. schools, universities, hospitals, and other
priority groups) with discounted capacity prices, the operation will support objective (c) of the
ISN.
15. WARCIP Togo is fully aligned with the World Bank Partnering for Africa’s Regional
Integration: Progress Report on the Regional Integration Assistance Strategy for Sub-
Saharan Africa (RIAS) dated March 21, 2011 and the new WBG ICT strategy. The updated
RIAS seeks to create economies of scale, facilitate intra-regional trade and exports, and connect
landlocked countries to regional and global trade routes by reducing barriers to movement of
goods and services between countries. It recognizes the key role ICTs can play in regional
integration and increasing competitiveness of African economies. The project is also fully in line
with the new World Bank Africa Strategy, Africa’s Future and the World Bank’s support to it,
dated March 2011. By facilitating cheaper access to the Internet and supporting the development
of national and regional communications infrastructure, the project would promote
competitiveness and sustainable employment (Pillar 1: Competitiveness and Employment) of the
Africa strategy. It would also focus on partnerships by leveraging private sector investments in
shared infrastructure.
16. Improving connectivity in Togo is expected to accelerate the realization of an integrated
regional ICT market. The AICD10
report highlights the importance of regional integration, in
particular for the smaller countries in the region which could each independently spend between
5-30 per cent of their GDP on addressing infrastructure gaps, in contrast with 1 per cent of
regional GDP. Integrating and sharing physical infrastructure could allow countries to gain
economy of scale, harness regional public goods and enable deeper economic growth. A regional
approach to addressing the combined effects of the three level connectivity gaps could reduce
the cost for each of the countries involved, and result in positive effects on prices and capacity,
increased availability of end-to-end high-capacity bandwidth at competitive rates and hence
broadband provisioning within the region.
17. An integrated ICT market would stimulate economic growth and enhance trade. The
region’s prosperity depends on how well it is integrated into the global economy. Information
and Communication Technologies (ICT), particularly high-speed Internet, is playing an
increasingly central role in this - enhancing trade, facilitating cross-border payments, increasing
productivity and improving the quality of public service delivery – all key components of
economic growth and poverty reduction. A number of ECOWAS countries are at the initial stages
of positioning themselves as preferred destinations for Information Technologies (IT) and IT
Enabled Services (ITES) in the region.
18. Intensification of broadband networks will stimulate investment and economic growth. The contribution of broadband networks to economic growth is much more pronounced than that
of narrowband networks. Studies have confirmed that for every 10 percentage-point increase in
high-speed internet connections, there is an increase in economic growth of 1.3 percentage
points.11
New businesses in the ICT and IT enabled services sectors are supported by improved
access to high-speed internet. More generally, the remarkable contribution of ICT to economic
10 AICD - ECOWAS’ Infrastructure: A Regional Perspective, July 2010.
11Word Bank - Information and Communications for Development 2009: Extending Reach and Increasing Impact.
7
growth has been demonstrated in many studies. For example, a recent cross-country analysis
found that the growth effect of ICT can be significantly stronger in developing countries than in
developed countries. The contribution of ICT to one of the key pre-requisites for attracting
investment - improved governance, accountability and transparency - is also increasingly
apparent.
II. PROJECT DEVELOPMENT OBJECTIVES (PDO)
A. PDO
19. The PDO for WARCIP Togo is to increase the geographical reach of broadband networks
and to reduce costs of communications services in the territory of the Republic of Togo12
.
20. The project has three main components with the ultimate aim being to enhance Togo’s
economic integration in the region- The project proposes an integrated approach focusing on
(i) improving connectivity; and (ii) creating an enabling environment, dealing with improving
sectoral efficiency and institutional strengthening to remove existing bottlenecks for private
sector participation in ICT infrastructure development.
B. Project Beneficiaries
21. Direct beneficiaries of the project include people who are connected to the
communications network in the Republic of Togo. These include telecommunication and
internet services users, schools, hospitals, banks, corporations, government and public
administrations, to be measured as the number of active fixed and mobile subscribers13
. Indirect
beneficiaries potentially include all of the country’s population, since increased communications
capabilities at affordable rates for some of the population are expected to eventually have
externalities for all.
12 This is the same PDO as the WARCIP Program and applies to all countries joining the program. In the specific
case of Togo improving broadband access will be through financing a carrier hotel and purchasing international bulk
bandwidth) to ensure competition for international connectivity and reduce costs.
13 Internet subscribers not accounted for separately, to avoid double counting.
8
C. PDO Level Results Indicators
Project Development
Objectives (PDO)
Core
Sector
Indicators*
Outcome Indicators Base line
2011
By the closing date
(2017)
PDO for WARCIP Togo is
to increase the geographical
reach of broadband
networks and to reduce
costs of communications
services in the territory of
the Republic of Togo.
N International Communications
(Internet, Telecoms, and Data)
bandwidth per person (total
population) in Kbits per second
2.5 6
Y Access to Internet Services (number of
Subscribers per 100 people) 0.9% 8.7%
Y Access to Telephone services (fixed
mainlines plus cellular phones per 100
people)
48.9% 75%
Average price of international
communications using the proxy:
N Average monthly price of international
capacity link (E1 or 2Mbps) from the
capital city to Europe in US$
2348 200
Y Project beneficiaries in million
Number of direct project
beneficiaries, of which Female %
3.35
30
6.00
40
* Results Platform, CT: Telecommunications, Core Sector Indicators and Definitions, May 25, 2010
III. PROJECT DESCRIPTION
22. WARCIP Togo will be executed over a five-year period with a total IDA financing of
US$ 30 million. It will include a set of well-defined project activities grouped under three broad
components (see Annex 2 for detailed breakdown of the main proposed project components).
A. Project Components
23. Component 1- Supporting Connectivity (US$ 16 million). The Component will have
financing and support for 2 main activities: (i) establishing a carrier hotel and national / regional
IXP where a bandwidth market and a national / regional hub for capacity could be established in
order to improve terms of access to international capacity at lower costs, and any resettlement
costs associated to this; and (ii) purchase of bulk international bandwidth capacity to ensure that
international (and national) capacity is available to the country at the lowest cost and highest
quality. WARCIP Togo will provide resources for the launch of a competitive tender to purchase
high capacity bandwidth from neighbouring coastal countries to be delivered at the carrier hotel.
By doing so, Togo will benefit from similar conditions of access to connectivity (diversity of
choice, low prices) as other countries in the ECOWAS region.
9
24. Component 2 - Creating an Enabling Environment for Connectivity (US$ 11.5 million).
This component will focus on (i) the transactional design and operating model for ownership of
the carrier hotel as well as its management using PPP arrangements, and support for the
competitive tender for the international bandwidth; (ii) development of open access principles to
create an enabling environment for improved connectivity, specifically through support to the
regulator to develop regulatory instruments for open access to capacity and to ensure that the
benefits of lower prices trickle down to end users on the retail level; (iii) policy and regulatory
support to improve sectoral efficiency, including price regulation and market competition, in
application of the new ICT policy; and (iv) institutional strengthening to the Ministry, to the
regulatory authority and to the SPV. A detailed list of activities is provided in Annex 2.
25. Component 3: Project Implementation, Communications and M&E (US$ 2.5 million). This component will provide support needed to strengthen the capacity of the Government to
implement the connectivity project, including setting up a Project Implementation Unit (PIU)
located within the Line Ministry and covering office equipment, operating costs, trainings . The
component will also cover the cost audits, communications, monitoring and evaluation (M&E),
and environmental and social studies, including their implementation and/or the monitoring of
their implementation.
B. Project Financing
26. Lending Instrument- Lending will be via an APL. The lending instrument is an APL.
WARCIP-Togo is an investment operation under the second phase of the regional WARCIP
program14
. The project will be financed with an IDA credit with a maturity of 40 years including
a grace period of 10 years.
27. Breakdown of Regional and National IDA allocations. Activities under the proposed
project meet the regionality criteria and therefore are eligible for regional IDA funding. The
table below provides a summary of project cost per component.
14
APLs are being replaced by Series of projects under OP.10.0, effective April 08, 2013.
10
Project Cost and Financing Table
Component 1 : Improving Connectivity $ 16,000,000
Carrier Hotel / regional datacenter 6,000,000
Supply of international bandwidth to create a market a the carrier hotel 10,000,000
Component 2- Creating an enabling environment for the sector $11, 500,000
Feasibility study, technical specification and support to set up the carrier hotel
/datacentre under PPP arrangement and for the supply of the international bandwidth 1,200,000
Study for strategies for improving broadband in Togo 250,000
Open Access regime (Carrier Hotel and capacity) 250,000
Regulatory regime to address market dominance 500,000
Price regulation ( interconnection and backbone access) 500,000
Fiscal study 150,000
Support to regulatory authority and ANSR 1,200,000
Legal and regulatory framework for e-society. 1,000,000
Creation of AIE-Togo 900,000
Design and implementation of specialized regional training on ICT 900,000
Support for issuing new licenses in the sector 500,000
Feasibility study for technology Park 500,000
Implementation support for broadband strategy 2,000,000
Capacity building for Ministry and regulatory authority 800,000
Support for Togo Telecom 500,000
Support for development of additional regulatory priorities 350,000
Component 3: Implementation support $ 2, 500,000
PIU set up and operating cost 1,250,000
Communications, M&E, environmental studies, audit 750,000
Support for the operationalization of the PPP 150,000
Contingencies 350,000
Total 30, 000,000
C. Program Objective and Phases
28. The proposed operation comes under the second phase of the APL for WARCIP, which
was approved on January 20, 2011. WARCIP is a World Bank regional APL instrument that
seeks to contribute to increasing the geographical reach of broadband networks and reducing
costs of communications services in West Africa. As indicated in the WARCIP Appraisal
Document, countries join different phases of the program based on their readiness. Triggers
include (i) government commitment to liberalization and open access principles, (ii) existence of
a PPP framework (or willingness to formulate one as part of preparatory activities), and (iii)
11
government commitment to increased sector competition as evidenced by pro-competitive policy
and regulatory frameworks. The GoT shows a strong commitment to opening the
telecommunications market to competition and implementing sector reforms.
29. The GoT has expressed interest to join WARCIP and demonstrates readiness to meet
the Program’s triggers for PPPs and open access: The GoT made a request to join WARCIP in
July 2011 and received a Project Preparation Advance (PPA) to conduct preparatory activities
related to establishing a PPP framework and open access regime for the carrier hotel and to put in
place an open access regime. In addition, the GoT has committed to improve sector efficiency
through a number of on-going reforms including launching the process for licensing new ISPs15
,
a process for issuing MVNO licenses and restructuring Togo Telecom, and include dominance
based regulatory framework to ensure fair competition in the market. The GoT has also
committed to adopt PPP and open access principles to ensure fair and open access to this critical
asset for the sector. The reform agenda is being carried out with support of the budget support
operation and Technical Assistance support through non lending TA and complementary trust
fund resources.
D. Lessons Learned and Reflected in the Project Design
30. Country commitment to the proposed project is important. The proposed project draws
on lessons learned from previous and on-going World Bank-financed projects in ICT and from
on-going efforts in countries in similar situations as Togo. Broad global experience in ICT
project implementation indicates that ICT project success is primarily contingent on strong
country commitment to implementation. The proposed project design has been guided by the
telecommunications sector national policy. GoT’s request to include specific regulatory activity
support as part of the project design reflects its commitment to pursue the reform of the ICT
sector and accelerate the implementation of its National Information and Communications
Infrastructure (NICI) strategy.
31. Technical assistance needed to support implementation of project activities. Experience
in several countries has shown that significant capacity is needed for negotiations with the
private sector to establish PPP arrangements. Given the low capacity of the institutions involved
in project implementation, the project provides financing for extensive technical assistance to
allow for detailed design of the PPP agreements and other technical activities under the project,
with significant involvement financed by the PPA. The technical assistance will also provide
support, where needed, for the formulation of the bidding documentation and technical
specifications in relevant project components. Regulatory capacity is necessary to enable fair
competition as problems can and will develop over time. Building such capacity takes time. At
the same time, Togo could benefit from the extensive experience of other countries in this area.
The proposed project focuses on building this capacity in the regulatory authority by using in-
house training, study tours, twinning arrangements and creating opportunities for peer-to-peer
learning from more advanced regulators and the sharing of experiences.
15
The process is delayed. The regulatory authority prepared the bidding documents but process was not launched
waiting for additional reviews from experienced consultants.
12
32. The project also builds also on specific lessons learned in the preparation of the several
sequences of the first phase of WARCIP, APL 1A, APL 1B, APL 1C, as well as from the
follow on phases of CAB, APL 2 and APL 4, and from CARCIP in another region. The
Bank has developed a substantial experience in coordinating and financing similar ICT projects
in the world in general, and Africa in particular. In the East and Southern Africa, the World Bank
has approved a US$424 million Regional Communications Infrastructure Program (RCIP)
covering about 25 countries. The World Bank Group (WBG) also recently approved a US$215
million Central Africa Backbone Program which will leverage existing fiber and provide
improved connectivity to the region. The Caribbean Infrastructure Program (CARCIP) is a
US$98 million facility approved in May 2012. These experiences are being leveraged in the
preparation of WARCIP Togo.
33. The project is benefitting from the WBG’s experience in PPPs: The World Bank has had
extensive experience in supporting Governments to structure PPPs for international, regional and
national connectivity. In general, it has been observed that international connectivity projects,
often led by private consortia, have attracted significant private capital, have been completed
relatively faster, and tended to more successful in structuring partnerships between the public
and private sectors that involve equity ownership of both parties, through SPVs, with operation
left to the private sector. Challenges in structuring PPPs have included: (i) inadequate trust and
cooperative relationships between government and private sector and between competitors – the
WBG has been instrumental in mediating and developing transparent governance frameworks,
(ii) inability of governments to provide effective regulations, and therefore any solution that
depends solely on the regulator is likely to fail – the WBG has supported the development of
robust transaction agreements which include clear rules of engagement, (iii) high cost of quality
expert advisory services for design, management of tenders and negotiation of contracts, and
countries’ reluctance to invest their limited resources on such expertise and (iv) WBG support
systems not ideally suited for PPPs (procurement, legal, disbursement) – increasing efforts have
been made to improve Bank support but more needs to be done. Specific experience from earlier
ACE related projects, as well as from WARCIP Burkina Faso has been instrumental in shaping
this operation by focusing on securing private sector interest during early project preparation
stage to increase buy in and commitment from the private sector.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
34. The project will be implemented under the aegis of the Ministry of Posts and
Telecommunications (MPT) for Togo. A separate PIU is being established under the PPA. The
core PIUs staff will consist of a project coordinator, procurement specialist, financial specialist,
a technical expert and an office assistant16
. The PIU core team will be strengthened by hiring an
M&E specialist and contracting with an environmental and social safeguards consultant who will
work closely with Agence Nationale de la Gestion Environnemtale (ANGE) to ensure safeguard
compliance of project components.
16
A recruitment firm was hired under the PPA to assist the Ministry with the recruitment process of the PIU
members. Negotiations are on-going with the shortlisted candidates.
13
35. The PIU will be assisted by a project team called “focal Unit forum”, composed of
representatives from the Ministry of Posts and Telecommunications (MPT), the Ministry of
Finance (MoF), Ministry of Public Works, the Regulatory Authority and from representatives
of telecom operators. The focal units are not consultants hired under the project but rather staff
of their respective institutions and therefore not eligible for funding under the project.
B. Results Monitoring and Evaluation
36. The PIU will monitor and evaluate the project. The PIU will bear the primary
responsibility for project M&E of both project progress and project outcomes, and, as such, will
establish standard formats and guidelines for data collection and reporting, and will organize
training sessions for project stakeholders in their use. The PIU will submit to the Ministry the
M&E a semester report that will include the updated Results Framework and the Action Table,
listing the corrective actions to be implemented with deadlines and persons responsible clearly
identified. The report will be sent to the Bank for information.
37. The views of direct beneficiaries will be brought into the monitoring and evaluation
process. Comprehensive M&E reporting will be needed to monitor the results and performance
of the proposed project. It will involve mainly the direct beneficiaries of project activities, but
will be extended to other beneficiaries such as telecommunications operators and private ICT
firms, which ultimately are the main beneficiaries of the proposed project’s outcomes. The PIU
will review and validate the reports on performance indicators and recommend corrective actions
if necessary. There will be focal units as to who will be responsible for providing relevant
information and monitoring progress, using relevant performance indicators.
C. Sustainability
38. Improved access and lower prices will be sustained. Improved service coverage and
quality at more competitive prices for international, regional and national connectivity and for
data services will be sustained as it will create opportunities for advanced applications, using
more bandwidth and creating more traffic.
39. Legal and regulatory reform is expected to have a sustainable impact. Predictability
and transparency of the legal and regulatory framework that is conducive to private sector
participation and competition will increase the demand for affordable quality ICT services,
including advanced applications. Given that a number of private operators already exist in the
market and that there is potential for additional players beyond the current wireless sector, it is
likely that the regulatory authority will have sufficient resources and capacity through license
and regulatory fees to become a self-funded institution and sustain the required regulatory
capacity to supervise sector development.
40. Local capacity will be strengthened through training and technical assistance. The
project will make significant investments in capacity-building efforts through training and
technical assistance to build technical expertise, social capital and knowledge. With the focus on
building sustainable capacity in key institutions such MPT and theregulatory authority, the
benefits of the project are expected to last far beyond program completion. As such, capacity will
14
support the creation of ICT policy and regulatory know-how to guide sector growth and
transformational applications in the future.
V. KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary Table
Risk Rating
Stakeholder Risk H
Implementing Agency Risk
- Capacity S
- Governance S
Project Risk
- Design S
- Social and Environmental S
- Program and Donor L
- Delivery Monitoring and Sustainability S
L - Low, M - Moderate, S – Substantial, H – High
B. Overall Risk Rating Explanation
41. The overall risk for preparation is rated S (substantial). The risk rating is based on
country risks, difficulties of establishing a PPP framework. While there are a number of risks
involved (see above), actions contemplated under the PPA as well as under the enabling
environment component of the project for these risks to be contained and appropriate mitigation
measures to be put in place. The overall risk for implementation is rated S (Substantial). The PPP
model, although used in other countries participating in WARCIP, will be new to the telecom
sector in Togo. Risks of delays by cautious stakeholders may affect the project’s execution.
There are also risks linked to the timely implementation of infrastructure and to the risks linked
to weak implementation capacity. The risks will be evaluated regularly during project
implementation and updated accordingly.
VI. APPRAISAL SUMMARY
A. Economic and financial Analysis
42. Open and non-discriminatory access to the carrier hotel is needed to meet existing and
future demand for reliable and affordable capacity. Togo is currently dependent on a single
submarine cable – WACS - for its international capacity requirements. Currently this capacity is
owned and managed exclusively by Togo Telecom without open access principles. A PPP
framework to allow additional capacity to be available at the carrier hotel will create an access to
this capacity on open and non-discriminatory terms is key for the development of the broadband
market in Togo.
15
43. The datacenter carrier hotel (and IXP) will create improved connectivity by allowing
the different operators to have alternative and additional access beyond WACS. Carriers
with international infrastructure would all connect with the Carrier Hotel to provide services to
other operators/large users and also to ensure the security and redundancy of their own links by
having a single point from which to cross-connect. The presence of the Carrier Hotel would also
attract other international operators (as well as content providers) to land their fibre infrastructure
and data servers there, as the most cost effective place to meet, peer, and trade capacity. This
passive infrastructure reduces the cost for the local operators to connect to international
infrastructure by just having one place to connect with, and creates a more fluid open market for
capacity, because local operators and users can switch between suppliers in seconds, (or change
the volume of capacity obtained from each of their suppliers) simply through a configuration
change on the router or changing a cross-connect cable on the fibre switchboard. This will pave
the way for successful development of regional and local content and applications.
44. Depending on the revenue model and capacity pricing adopted, the investment in the
Carrier Hotel in Togo will breakeven by 2017-2019 after which the project will be cash-flow
positive if wholesale pricing levels are maintained. The investment will see Togo breakeven by
2017-2019, depending on the wholesale price adopted, with an NPV to 2023 of US$8.49 million
and an IRR of 26.6%, (assuming an average wholesale bandwidth sale price of
US$200/Mbps/month, declining to US$100 in year 5), and an NPV US$ 958,628 and an of IRR
of 16.32%, assuming US$100/Mbps/month, declining to US$50, wholesale price. For Togo,
pricing capacity for traffic in the US$100-150/Mbps/month range is likely to be sustainable and
would stimulate use. This also takes into account bandwidth pricing trends in other regions such
as East Africa. The final breakeven year will depend on actual capacity uptake and the wholesale
price of bandwidth. After 2019 at the latest, the project would be cash-flow positive and
substantial revenues would be made if these wholesale pricing levels are maintained.
45. The project will increase access to Internet, create jobs, improve education
opportunities and public administration and increase government revenues. The project
will bring significant benefits to Togo in a number of ways including (i) increased public access
to Internet services (ii) a broad range of social benefits through increased labor productivity,
employment creation, learning opportunities for youth, participation by women in the labor
market, and improved public administration (iii) greater fiscal returns due to new sources of
revenue for the GoT. It must be noted, however, that the economic and financial benefits of a
technical assistance component is generally difficult to quantify because of the inadequacy of
data available at the outset.
B. Technical
46. The proposed project recognizes that infrastructure and policy environment
bottlenecks need to be dismantled to ensure better communications access. Technical design
of the project reflects lessons learned in the ICT sector and international best practices. For most
developing countries, a major obstacle to the uptake of ICT remains the lack of adequate access
to ICT infrastructure. A lack of investment in ICT infrastructure and access networks, coupled
with inefficient provision of services, are the most important factors undermining the
development of networked economies. The main lesson derived is that success is mainly market
16
driven. Creating a predictable legal and policy environment leading to effective competition in
the sector is key to improving investor confidence and restoring trust in the ICT sector. The
focus of the proposed project is to create a PPP framework for international connectivity. The
project will establish an enabling institutional and regulatory environment to help attract and
sustain investment in the telecommunications sector.
47. Legal Due diligence- Regulatory Issues. The main issue is ensuring “open access” (fair
and transparent pricing) to the bandwidth capacity arriving at the carrier hotel at the domestic
level. This is primarily a domestic regulatory issue. A review of the sector regulatory framework,
including licensing conditions, will be conducted at the national level. Significant reforms are
on-going in Togo. With the adoption of the new communications act, earlier legal restrictions for
building infrastructure by competing operators have been lifted. The new 3G licenses under
negotiations with the mobile operators give the right to the operators to operate their own
gateway and to build their own infrastructure. Additional support under the project will be given
to the Government to have a capacity pricing mechanism to ensure open access and detailed
support to enforce open access will be included in the project , based on needs assessment and
additional due diligence conducted under the PPA.
C. Financial Management
48. The project team has assessed the financial management capacity of the Project
Implementation Unit being established within the Ministry of Posts and
Telecommunications (MPT) of Togo. The financial management assessment was carried out in
accordance with the Financial Management Manual issued by the Financial Management Board
on March 1, 2010. The objective of the assessment was to determine whether the Ministry had
acceptable financial management capacity. Arrangements are acceptable if they are capable of
recording accurately all transactions and balances, supporting the preparation of regular and
reliable financial statements, safeguarding the Project’s assets, and are subject to auditing
arrangements acceptable to the Bank. These arrangements should be in place when project
implementation starts and be maintained as such during project implementation.
49. The conclusion of the financial management assessment is that financial management
arrangements for the Project are being established in order to satisfy the World Bank’s
minimum requirements under OP/BP10.02, after which they will be adequate to provide,
with reasonable assurance, accurate and timely information on the status of the Project as
required by the Bank. The main areas of focus which are being financed with the project
preparation advance are: (i) the recruitment by effectiveness of an FM specialist with
qualifications and experiences satisfactory to the Bank17
, (ii) the preparation, before negotiations
of an FM manual for the project18
, and (iii) the set-up of accounting software, three months after
effectiveness. The overall fiduciary risk rating for the project is assessed as Substantial and is
expected to be moderate once the mitigation measures are implemented.
17
The procurement process for the recruitment of the FM specialist is on-going. 18
A draft Manual has been prepared before negotiations. The final draft is expected by June 30, 2013.
17
D. Procurement
50. A procurement assessment has been carried out on November 23, 2011; the main risks
identified are the lack of procurement capacity and the lack of procurement manual. The MPT
will carry-out procurement activities of the project through a PIU wish will be establish under
the MPT. This PIU is the process of being established and will be staffed by a Project
Coordinator, a Procurement Officer, a FM Specialist and an M&E Specialist. The procurement
activities will be implemented using the national procurement institutional framework which is
in line with UEMOA Guidelines. The MPT has a Procurement unit (CPMP) and an internal
procurement control committee (CCMP). The National Department of Public Procurement
control (DNCMP) will have to exert an external procurement control for contract above the
CCMP accreditation thresholds. The project procurement risk has been rated as substantial.
E. Social and Environment
51. The carrier hotel to be financed under the project is not expected to have significant
environmental impact. The physical components of this project will mostly be limited to
building IXP/Carrier Hotel/Datacenter and limited terrestrial fiber optic links to connect the
carrier hotel to the networks of the operators, if needed. The terrestrial fiber optic links are
expected to follow roads already in place and the IXP/Carrier Hotel/Datacenter to be built on a
site to be finalized among three possible sites. The proposed project is rated as a Category B.
52. The proposed project is expected to have positive social benefits. The main social
impacts of the proposed project are the increased possibility of better access to ICT services for
the population and improved GoT service delivery. The project will contribute to (i) enabling
ICT to become a driver for sustainable economic growth; (ii) enabling the GoT to use ICT to
improve services; (iii) improving access and quality of ICT services for the general population,
businesses, and the GoT; and (iv) reducing isolation and enhance economic activities.
53. Possible negative environmental and social impacts from the physical components are
limited. These could include soil erosion; soil and water pollution; loss of vegetation; the
disturbance on socio-economic activities and livelihoods located on the way noise; dust; risk of
accident and the generation of waste; risks of land acquisitions, possible destruction of crops.
The Environmental Safeguards Policies triggered are Environmental Assessment (OP/BP 4.01),
Natural Habitats (OP/BP 4.04), Physical Cultural Resources (OP/BP 4.11) and Involuntary
Resettlement (OP/BP 4.12).
54. As the exact nature and location of investments may not be determined up front, the
GoT prepared and consulted upon an Environmental and Social Management Framework
(ESMF) and a Resettlement Policy Framework (RPF). The ESMF outlines: (i) mitigation
measures of impacts of the fiber laying and building the carrier hotel including environmental
guidelines for contractors and guidelines applicable to health, safety and environment; (ii)
measures in case of archaeological discovery; (iii) institutional strengthening measures
(strengthening environmental expertise of the WARCIP PIU); (iv)strengthening technical
measures (provision for the implementation of environmental impact assessments ; monitoring
and evaluation of WARCIP); (v) information for stakeholders involved in the implementation of
the project and public awareness; (vi) a program of surveillance and monitoring; (vii)
18
institutional responsibilities for environmental monitoring; (viii) the institutional arrangements
for implementing the ESMF; (ix) the recommendations for implementation; (x) the timing for the
implementation of measures and the costs of environmental and social measures. Based on the
outcomes of the screening process, the requirement to carry out an Environmental and Social
Impact Assessment (ESIA) that includes an Environmental and Social Management Plan
(ESMP) will be undertaken during project implementation in parallel with subcomponent
technical feasibility studies.
55. The proposed project is not expected to pose risks of damaging existing community
cultural property: The terrestrial fiber optic links will be built with the right-way of existing
roads and the IXP/Carrier Hotel/Datacenter will be built on an existing technical site; therefore it
is not expected to pose risks of damaging existing community cultural property. Nevertheless,
proposed Project activities will be screened for their potential impacts on cultural property and
chance find procedures will be applied and appropriate mitigation measures for both the
identification and protection of cultural property. The ESMF has provided the systematic steps
to be followed once these properties are discovered during project implementation.
56. The proposed activities under this operation should not cross natural parks or
reserves. However, the project includes special arrangements to avoid sensitive sites (wetlands
and critical natural habitats). If the works will result in any pressures on natural ecosystems,
fauna and flora, the ESMF has recommended steps to be followed during ESIA preparation in
addition to avoid these sites with the project design (to follow existing roads/railways as much as
possible).
57. The need for involuntary resettlement resulting from land acquisition in specific
subcomponents areas will only be known during project implementation when site-specific
plans are available. The prepared RPF includes guidance for preparing socio-economic surveys,
a census of people and assets, and appropriate eligibility and entitlement frameworks. Therefore,
Project subcomponents will be screened for application of the resettlement policy and any
subcomponents involving involuntary resettlement or land acquisition will only be approved
(and disbursed against) after preparation of a Resettlement Action Plan (RAP) acceptable to the
Bank. The RPF has considered procedures for identifying eligible project-affected individuals,
calculating and delivering compensation, and determining mechanisms for land dispute
grievance redress as well as mechanisms for adequately monitoring and evaluating the level of
compliance.
58. Total cost of activities is estimated at US$ 406,000. While Credit funds will not finance
land acquisition, proceeds will be available to finance other resettlement costs. The ESMF and
RPF were reviewed and cleared by the Bank on March 18, 2013, and disclosed in the country
and at the Infoshop on March 19 and March 20, respectively.
19
F. Effectiveness conditions and Covenants:
59. Effectiveness conditions:
The Recipient shall have established the PIU under terms of reference and with staff in numbers
and with qualifications satisfactory to the Association. As part of such staffing, there shall be in
place for the PIU: (i) the Project coordinator; and (ii) a financial management specialist and a
procurement specialist, all of them under terms of reference and with qualifications and
experience satisfactory to the Association.
60. Disbursement conditions:
No withdrawal shall be made:
1) Under Category (1) (works for the establishment of the neutral Carrier Hotel and the Internet
Exchange Point under Part 1 (a) of the Project), until and unless:
i. (A) the Association shall have approved the ESIA, ESMP, and/or the RAP, as the
case may be, and the same documents have been consulted upon and disclosed as
approved by the Association; and (B) the Recipient shall have verified, through its
own staff, outside experts, or existing environmental/social institutions, that the
activities under Parts 1 (a) of the Project meet the environmental and social
requirements of appropriate national and local authorities and that they are
consistent with the Association’s applicable environmental and social assessment
and safeguard policies and comply with the environmental and social review
procedures set forth in the Project Implementation Manual;
ii. (A) the SPV and the PPP have been duly created, registered and made operational
in the territory of the Recipient, including through the appointment of their
managers and the adoption of their by-laws, in form and substance satisfactory to
the Association; and (B) there shall be furnished to the Association an opinion
satisfactory to the Association of counsel acceptable to the Association showing
that the SPV and the PPP have been duly created, registered and made operational
in the territory of the Recipient and are legally authorized to operate in
accordance with the laws of the Recipient;
iii. (A) the Main Contractual Agreement, in form and substance satisfactory to the
Association, has been entered into between the Recipient and the SPV; and (B)
there shall be furnished to the Association an opinion satisfactory to the
Association of counsel acceptable to the Association showing that the Main
Contractual Agreement has been duly authorized or ratified on behalf of the
Recipient and the SPV, and executed and delivered on their behalf, and is legally
binding upon the Recipient and the SPV in accordance with their terms; and
20
iv. (A) the PPP Agreement, in form and substance satisfactory to the Association, has
been entered between the SPV and the PPP; and (B) there shall be furnished to the
Association an opinion satisfactory to the Association of counsel acceptable to the
Association showing that the PPP Agreement has been duly authorized or ratified
on behalf of the SPV and of the PPP, and executed and delivered on their behalf,
and is legally binding upon the SPV and the PPP in accordance with its terms.
2) Under Category (2) (for payment of Lease of Capacity, the expenditures to be incurred by the
GoT under Part 1 (b) of the Project to secure access to international bandwidth) until and unless:
(A) the Capacity Purchase Contract, in form and substance satisfactory to the Association, has
been entered into between the SPV or the PPP, as the case may be, and the supplier selected for
the delivery of high capacity bandwidth under Part 1 (b) of the Project; and (B) there shall be
furnished to the Association an opinion satisfactory to the Association of counsel acceptable to
the Association showing that the Capacity Purchase Contract has been duly authorized on behalf
of the SPV or the PPP, as the case may be, and the supplier, and executed and delivered on their
behalf, and is legally binding upon the SPV or the PPP, as the case may be, and the supplier in
accordance with its terms.
61. Legal covenants
1) The Recipient shall: (i) not later than three (3) months after the Effective Date, acquire and
install in the PIU accounting software suitable for the purposes of the Project; and (ii) not later
than four (4) months after the Effective Date, employ an external auditor for the PIU under terms
of reference satisfactory and with qualifications and experience satisfactory to the Association.
2) To facilitate the carrying out of Part 1 of the Project, the Recipient shall have in place a
suitable contractual framework to ensure the Financing is used for the intended purposes. To that
end, the Recipient shall conclude a contractual agreement (“Main Contractual Agreement”) with
the SPV hereby the Recipient shall transfer to the SPV: (A) on a non-reimbursable basis, the
proceeds of the Financing allocated from time to time to Category (1) to finance the Carrier
Hotel and Internet Exchange Point to be established under Part 1 (a) of the Project and to be
implemented by the PIU; and (B) the ownership of the Carrier Hotel and Internet Exchange Point
to be established under Part 1 (a) of the Project.
3) In order to ensure the Carrier Hotel and the Internet Exchange Point to be established under
Part 1 (a) of the Project are operated with due diligence and efficiency and are managed in a
manner suitable to ensure services are delivered according to Open Access principles and in a
manner satisfactory to the Association, the Recipient shall cause the SPV to enter into a PPP
agreement (“PPP Agreement”) with the PPP whereby the SPV shall transfer to the PPP the
proceeds of the Financing allocated from time to time to Categories (2) and (3) and assign to the
PPP responsibility for the management and operation of the Carrier Hotel and the Internet
Exchange Point to be established under Part 1 (a) of the Project.
4) For the purposes of securing access to international bandwidth under Part 1 (b) of the Project,
either by IRU or through refill of capacity from other neighboring countries, the Recipient shall
cause the SPV or the PPP, as the case may be, to execute a capacity purchase contract (“Capacity
21
Purchase Contract”), in form and substance satisfactory to the Association and in accordance
with the PPP principles, with a suitable supplier of international bandwidth.
5) The Recipient shall:
i. take all measures required on its behalf to carry out, and to ensure that the SPV
and/or the PPP, as the case may be, carry out, the ESIA, ESMP, and/or the RAP, as
the case may be, in accordance with the provisions of the ESMF and the RPF; and
ii. ensure that the relevant mitigation and monitoring provisions of the ESIA, ESMP,
and/or RAP, as the case may be, are appropriately implemented and that adequate
information on how any potential negative impact under Part 1 (a) of the Project has
been minimized is suitably included in the Project Reports to be prepared pursuant to
the provisions of Section II.A.1 of this Schedule.
6) For the purposes of the Training to be provided under the Project, the Recipient shall:
(a) furnish to the Association for its approval, not later than November 30 of each
year, a training program including an explanation of how such training is
consistent and conducive to the objectives of the Project and whether it offers the
best price/quality ratio, as well as the schedule for its implementation;
(b) select the trainees in accordance with a transparent process and criteria
satisfactory to the Association; and
(c) furnish to the Association a report of such scope and detail as the Association shall
reasonably request, on the results of each training and the benefits to be derived
therefrom.
7) The Recipient, through the PIU, shall:
i. maintain policies and procedures adequate to enable it to monitor and evaluate on an
ongoing basis, in accordance with the Monitoring and Evaluation Indicators, the
carrying out of the Project and the achievement of the objectives thereof;
ii. prepare, under terms of reference satisfactory to the Association, and furnish to the
Association, on or about thirty-five (35) months after the Effective Date, a report
integrating the results of the monitoring and evaluation activities and setting out the
measures recommended to ensure the efficient carrying out of the Project and
achievement of the objectives thereof during the period following such date; and
iii. review with the Association, on or about thirty-seen (37) months after the Effective
Date, or such later date as the Association shall request, the report referred to in the
preceding paragraph (b), and, thereafter, take all measures required to ensure the
efficient completion of the Project and the achievement of the objective thereof,
based on the conclusions and recommendations of the said report and the
Association’s views on the matter.
22
8) The Recipient, through its MPT, shall ensure overall coordination, implementation and
supervision of the Project is carried out by the Project Implementation Unit with due diligence
and efficiency. To this end, the Recipient shall maintain the Project Implementation Unit
throughout Project implementation under terms of reference satisfactory to the Association and
with staff and resources adequate to enable it to carry out its responsibilities under the Project.
9) The Recipient shall, not later than three (3) months after the Effective Date, employ a
monitoring and evaluation specialist, and a telecommunications specialist for the PIU under
terms of reference and with qualifications and experience satisfactory to the Association.
10) Starting with Fiscal Year 2014 and each succeeding Fiscal Year throughout Project
completion, the Recipient, through its MPT, shall take all action required to obtain the inclusion
of a line item in its budget for the expenses necessary to support the MPT in the carrying out the
Project.
23
Annex 1: Results Framework and Monitoring
. Country: Africa
Project Name: WARCIP APL 2- Togo
. Results Framework
.
Project Development Objectives
. PDO Statement The project development objective for WARCIP Togo is to increase the geographical reach of broadband networks and to reduce the costs of
communications services in the territory of the Republic of Togo.
.
Project Development Objective Indicators
Cumulative Target Values Data Source/ Responsibility for
Indicator Name Core Unit of Measure Baseline
(2011) YR1 YR2 YR3 YR4 End Target Frequency
Methodology Data Collection
Volume of international traffic:
International Communications (Internet, Telecoms, and Data)
bandwidth per person19
Kbits per second per person
2.5 3.5 4 4.5 5 6 6 months Operators ART &P /PIU
Access to Internet Services (number
of subscribers per 100 people) Ratio 0.9 1.3 2 2.8 3.8 8.7 6 months operators ART&P/ PIU
Access to Telephone Services (fixed
mainlines plus cellular phones per
100 people) Ratio 48.9 55 58 60 70 75 6 months operators ART&P /PIU
Average monthly price of wholesale
international E1 capacity link from
capital city to Europe
Amount (USD) per month 2 Mbps
2348 2000 1500 1000 500 200 yearly operators ART&P /PIU
Direct project beneficiaries of which
Female (%).
Number (million)
(% female
Beneficiaries)
3.35 30
3.6 30
3.8 32
4.2 35
4.8 38
6
40
Annual Survey ART&P/PIU
.
19
Person are defined as paying users of Internet services
24
Intermediate Results Indicators
Cumulative Target Values Data Source/ Responsibility for
Indicator Name Core Unit of Measure Baseline
(2011) YR1 YR2 YR3 YR4 End Target Frequency
Methodology Data Collection
Intermediate Result (Component 1) - Supporting Connectivity : Increased access to ICT services
ATRPT-PIU
Additional Cross-border interconnections built20 Number 0 0 0 2 2 2
Mid term review
PPP ART&P and PIU
Access for all operators to
international infrastructure: Number
of operators and service providers getting capacity from the Regional
infrastructure deployed (as a
percentage of total)
Percentage of total 0 0 100 100 100 100 Yearly Operators ART&P and PIU
Intermediate Result (Component 2) - Creating an Enabling Environment for Connectivity
Increase of number of players in the
sector21 Number 4 5 7 8 8 8 Yearly Operators ART&P and PIU
Retail Price of Internet Services (per
Mbit/s per Month, in US$) USD) per Mbit/s per
Month, in US$) 149 140 130 125 120 110 Yearly Operators ART&P and PIU
Impact on Telecom sector of World
Bank Technical Assistance 22
composite score: 1- low impact to 5-high
impact)
0.00 1.00 2.00 2.00 3.00 3.00 6 months stakeholders PIU
20
This indicator measures the number of cross-border interconnections built as a result of the project. This indicator measures the progress towards a fully
redundant regional network 21
This indicator is a proxy for open access. It measures the progress of unfettered and non-discriminatory access at reasonable price for all operators 22
This is qualitative composite indicator. It rates (a) making the regulatory framework more effective at delivering sector performance, (b) improving the
capacity of the regulatory institution to deliver on its mandate, (c) increasing the level of competition in the ICT, (d) improving the ICT policy environment
in the country and reforming state-owned assets in the ICT sector as a result of the project technical assistance.
25
Annex 2: Detailed Project Description
Country: Africa
Project Name: WARCIP APL2 - Togo
1. Similarly to the previously approved WARCIP APL phases, WARCIP Togo will have three
components (i) Infrastructure component to improve connectivity; ii) Technical Assistance
component to create enabling environment; and (iii) Implementation support.
Component 1- Supporting Connectivity (US$ 16 million)
2. The connectivity component will focus on financing and support for (i) establishing a carrier
hotel and a national/regional Internet Exchange Point; and (ii) Supply of Bandwidth (International
Capacity Purchase) to create a market for connectivity at the carrier hotel.
a. Establishment of a carrier hotel
3. IDA funding will be used to establish a neutral 'carrier hotel' in Lomé. Carriers with
international infrastructure would all connect with the Carrier Hotel to provide services to other
operators/users and also to ensure the security and redundancy of their own links by having a
single point from which to cross-connect. The presence of the Carrier Hotel would also attract
other international operators (as well as content and application providers) to land their fiber
infrastructure and data servers there, as the most cost effective place to meet, peer, and trade
capacity. This would also be the ideal location for establishing the Internet Exchange Point
(IXP).
4. In essence the facility would be what is also commonly known in the industry as a “Carrier
Neutral Data Centre’ which reduces the cost for the local operators to connect to international
infrastructure by just having one place to connect with, and creates a more fluid open market for
capacity, because local operators and users can switch between suppliers in seconds, (or change
the volume of capacity obtained from each of their suppliers) simply through a configuration
change on the router or changing a cross-connect cable on the fibre switchboard. Local and
offshore operators and content providers such as Google/Akamai would normally lease
capacity/access hosting facilities at the Carrier Hotel. In this respect the Carrier Hotel would
essentially be passive infrastructure with multiplex and switching equipment aimed at
guaranteeing fair and unfettered physical access on transparent and equal terms. The IXP and
data centre aspects would simply add additional provisions for a layer 2 switch, rack-space, air-
conditioning and redundant/backup power.
5. This facility will be established as a Government owned SPV. The management of the carrier
hotel and the capacity that will be purchased under component 1 (b) will be through a PPP
contract. Both the SPV and the PPP arrangements are being prepared under the PPA.
Resettlement costs will be financed as necessary.
26
b. Supply of Bandwidth (International capacity Purchase) to create a market at the carrier
hotel
6. Providing an opportunity for Togo to have competitive access to a submarine cable capacity
via one or more of the country’s neighbouring landing stations could substantially reduce the cost
of international connectivity, increase capacity and provide more effective redundancy. The high
cost of international connectivity is very much a core concern for operators in Togo currently
relying exclusively on Togo telecom for international connectivity through WACS cable. The
purchase of capacity will take the form of IRUs that will be purchased following an open
tendering process.. The operators will negotiate their own backhauling arrangements to channel
the purchased capacity to the carrier Hotel or build their own fibers if licensed to do so in Togo.
Running the process for capacity purchase will benefit from technical assistance support under
component 2 to ensure fair and competitive process.
Component 2 - Creating an enabling environment for connectivity (US$ 11.5 million)
7. This component will focus on (i) the design and operating model for ownership and
management the carrier hotel and purchase international bandwidth, (ii) related open access
principles and regulatory reforms to create an enabling environment for improved connectivity,
(iii) support for policy priorities in implementation of the sector policy, including improving
sector efficiency, price regulation and market competition, and (iv) institutional strengthening for
regulator and policy maker.
8. Finalizing the transactional design and contractual arrangements for the SPV for the
ownership of carrier hotel, the PPP for the management of the infrastructure and supply of
international bandwidth: Under the PPA, consultants are in the process of being hired to finalize
the feasibility study for the carrier hotel and to support the Government to create to finalize
ownership and management structure for the infrastructure.
9. Addressing policy, market and regulatory bottlenecks to maximize the benefits of the
proposed connectivity agenda. Specifically, this activity will provide support to the regulator to
develop regulatory instruments for open access, including support for drafting IRU agreements,
and the wholesale regime for capacity pricing and other instruments to ensure open and non-
discriminatory access to the carrier hotel. Support will also be given to the regulator to ensure
that the benefits of connectivity translate into lower retail prices to end users.
10. Supporting policy priorities in application of the ICT strategy; the project will support a
number of activities including a taxation study, creation of legal and regulatory framework for e-
society, study on broadband strategy, demand stimulation and implementation of application
pilots, support for the creation on the ICT agency and development of a program for ICT
training.
11. Institutional strengthening: Institutional strengthening will be offered to (i) the regulatory
authority to enhance its capacity in regulating the ICT sector in areas related, among others, to
open access, regulatory instruments for dominance, and price regulation to acquire information
systems and equipment needed to strengthen its oversight on the sector (ii) National Agency for
27
spectrum management to support its establishment and build its capacity on spectrum
management, (iii) the MPT’s policy making functions; and (iv) SPV and PP through hiring and
building capacity of engineers to kick start the activities of the carrier hotel
Component 3: Project Implementation (US$ 2.5 m)
12. This activity will provide support needed to strengthen the capacity of the Government to
implement the connectivity project, including setting up the Project Implementation Unit (PIU)
and hiring dedicated staff to work on the project, hiring experienced Procurement and Financial
Management specialists and a Project Coordinator. The component will also cover support to the
SPV and PPP for the carrier hotel, through hiring a small team (2 engineers and project manager)
for the SPV and for the PPP. The component will cover office equipment including vehicles,
incremental operating costs, audits, communications and environmental and social studies and
implementation of recommendations of the environmental studies.
28
Annex 3: Implementation Arrangements
Country: Africa
Project Name: WARCIP APL2 - Togo
I. Project administration mechanisms
1. The proposed project will be implemented under the aegis of the MPT. Implementation
arrangements as shown in the graph below involve using 5 Focal Units. The PIU will be headed
by the Project Coordinator who will report directly to the Minister. The PIU will be composed of
(i) a project coordinator, (ii) a Procurement specialist, (iii) an FM specialist, (iv) an M&E
Specialist, (v) a Telecom Expert and (vi) Support staff.
2. Hiring of the PIU members and technical staff are underway under the PPA. A recruitment
firm is handling the process. The Recipient shall, not later than three months after the Effective
Date, employ the, monitoring and evaluation specialist, and telecommunications specialist under
terms of reference and with qualifications and experience satisfactory to the Association. The
PIU core team will be strengthened by contracting an environmental and social safeguards
consultant who will work closely with Agence Nationale de la Gestion Environnemtale (ANGE)
to ensure all Project activities comply with safeguard requirements as stipulated in the ESMF and
RPF.
3. The PIU will serve as the Credit administrator of the project and will handle all
administrative matters in accordance with the PIM. It will also ensure financial management and
handle project disbursements, and include the preparation and submission of replenishment
requests to IDA. The Unit will also be responsible for (i) maintaining a Management
Information System (MIS) for tracking progress in all project subcomponents, both in terms of
financial performance and meeting implementation targets and monitor the performance of all
contractors under the project; (ii) preparing annual work programs and budgets, and if necessary,
reviewing, in consultation with IDA, the reallocation of resources across the various components
of the project as lessons emerge as to patterns of demand and development impact. Development
of the PIM and establishment of the MIS will be financed under the PPA.
4. The PIU will be assisted by a task team composed of five focal units. The focal units will be
appointed by the Minister upon recommendation of different agencies/departments as follows:
Focal Unit recommended by the Minister on issues related to policy matters;
Focal Unit designated by the regulatory authority on regulatory issues.
Focal Unit from Ministry of Finance for public participation in PPP
Focal Unit from the Ministry of Public works for follow up on construction of the
carrier hotel
Focal Unit from representatives of telecommunications operators
29
5. Dedicated teams will be assigned for large activities. In the case of the carrier Hotel, the
project will assist the Government to hire a team of three consultants to work closely with the
consultants for the carrier hotel and will be associated with every step of the process from
conception to construction to gain technical knowledge. The team could be considered for
recruitment by the Government or the SPV after their contract under the project comes to an end.
30
II. Financial Management, Disbursements and Procurement
A. Financial Management
Fiduciary Risks and Mitigation Measures
6. The FM risk assessment and mitigations measures are summarized in the table below:
Risk Risk
Rating Risk Mitigation Measures Conditionality Residual
Risk Rating
Inherent Risks: S S Country:
Weak governance and anti-
corruption institutions.
S
S
Entity Level
The Ministry of Posts and
Telecommunications has
no previous experience in
managing IDA projects
S
A qualified and experienced FM
specialist will be recruited under
the PPA.
FMS to be recruited prior the
project being effective
M
Project level
Misunderstanding of
responsibility as the project
involves several
stakeholders.
S
POM to be developed with
appropriate trainings.
Draft of Project Operation
manual including FM aspects
have been prepared by
negotiations
M
Control Risks: S M Budgeting
Delays in budget
preparation process of the
project
S Support of the FM specialist
M
Accounting
Lack of qualified FM
specialist and appropriate
accounting system
S
A qualified FMS will be recruited
and adequate accounting software
will be acquired with the PPA.
Accounting software to be
acquired not later than three
(3) months after effectiveness
M
Internal Audit M
M
External Audit
Project audit reports might
be submitted with delay
and inacceptable quality.
S
An independent qualified external
auditor will be recruited
Appointment of the external
auditor not later than four (4)
months after effectiveness
M
Funds Flow M M
Reporting
Delay and difficulties in
preparation of acceptable
IFRs and financial
statements
S
Support of the FM specialist Agreement on IFR formats
and contents at negotiation
M
Overall Risk S M
H: High S: Substantial M: Moderate L: Low
31
Strengths and Weaknesses
7. The main strength is the existing of a PPF which will finance (i) the creating of the PIU, (ii)
the drafting of the Project implementation Manual including acceptable Financial and
Accounting Manual, (iii) and the set-up of computerized accounting system. It is important that
the PIU be fully established with a good draft of the operational manual in place, before
effectiveness, since any delay can have an adverse impact on implementation.
Time Bound Action Plan to Address the Weaknesses
8. The action plan below indicates the actions to be taken for the project to strengthen the
ministry financial management system.
No. Activity/Action Target
Completion
Responsibility
1. Appointment of a FM specialist with
experience and qualifications
satisfactory to the Bank
Prior to
effectiveness
Project
Implementation Unit
2. Prepare Project implementation
Manual including acceptable
Financial and Accounting Manual
First draft ready
by negotiations
Project
Implementation Unit
3 Set up a computerized accounting
system to fit project needs and generate
useful information and financial
statements
Not later than
three (3) months
after effectiveness
Project
Implementation Unit
4 Prepare TOR for the external auditor
that is satisfactory to IDA.
During appraisal
and agreed on at
Negotiations
Project
Implementation Unit
5 Appointment of the external auditor
acceptable to IDA
Not later than (4)
months after
effectiveness
Project preparation
committee /
Commission d’audit
des auditeurs des
entreprises publiques
32
Detail of financial management arrangements
9. The Project Implementation Unit will handle the overall responsibility of FM aspects of the
project included (i) managing the designated account, (ii) preparing withdrawal applications and
reporting to be submitted to the World Bank.
Funds Flow and Disbursement arrangements
Designated account
10. One designated Account will be opened at a commercial bank acceptable to IDA. The
ceiling of the DA has been set to CFAF 500 million based on the disbursement forecast for the
first four months. The project coordinator and the FM specialist will be the signatories of the
designated account.
Disbursement methods and processes
11. Disbursements under the project would be transaction based. In addition making advances to
the Designated Account, other disbursement methods (reimbursement, direct payment and
special commitment) will be available for use under the project, for example, direct,
reimbursement, and special commitment methods. Further instructions on disbursement and
details on the operations of the Withdrawal Applications and Direct Payments will be outlined in
the disbursement letter.
33
12. The table below sets out the expenditure categories to be financed out of the Credit proceeds:
Disbursement table
Category
Amount of the Credit
Allocated (expressed in
US$m.)
Percentage of
Expenditures to be
Financed (inclusive of
Taxes)
Works under Part 1 (a) of the Project 3.0 100%
Lease of Capacity under Part 1 (b) of
the Project
10.0 100%
Goods, consultants’ services, non-
consulting services, Operation and
Maintenance Costs, Recurrent Costs
and Resettlement Costs under Part 1 of
the Project
3.0 100%
Goods, consultants’ services, non-
consulting services, Training, and
Operational Costs under Parts 2 and 3
of the Project
11.0 100%
Refund of Preparation Advance No. Q
798
3.0 Amount payable
pursuant to Section
2.07 of the General
Conditions
Total Amount 30.0
Flow of funds
13. Funds will flow from the Credit Account through the Designated Account. The Direction du
Financement, du Contrôle de l’Exécution et du Plan (DFCEP) would be the assigned
representative of the Recipient for the mobilization of IDA funds. Withdrawal Application
requests will be prepared by the FM specialist, signed by a designated signatory or signatories
(the signature authorization letter is signed by the Minister of Finance), and sent to the Bank for
processing. The signatories will have to the option to submit electronic applications available on
the Bank’s Client Connection website.
34
Flow of Funds (See the illustration below)
DFCEP Direction du Financement, du Contrôle de l’Exécution et du Plan
DP Direct Payment
WA Withdrawal Application
Designated Account
(reputable commercial
bank)
managed by the PIU
DFCEP
WA (Funds) DP Credit Account
(Washington) at the
World Bank
Funds
Reports, Goods etc
Beneficiaries / Suppliers / Consultants
Suppliers / Consultants
Accounts
WA / DP
35
Reporting and Auditing arrangements
14. Quarterly Interim Un-audited Financial Reports (IFRs) will be prepared by the FM specialist.
IFRs included specific information on IDA financing will be submitted to the Bank within 45
days following the end of each quarter.
15. The PIU will produce Annual Financial Statements for the Project which will comply with
the local accounting standards (SYSCOHADA).
Audit arrangements
External audit
16. The supreme audit institution (Cour des Comptes) which is supposed to audit all public funds
is being established and has a limited capacity in terms of staffing and experience of auditing
project financial statements. In view of this, an external independent and qualified private sector
auditor acceptable to the World Bank will be recruited under the supervision of the steering
committee put in place by Togo ministry of finance for public company external audit.
17. The Auditor will express an opinion on the Annual Financial Statements, and perform his
audit in compliance with International Standards on Auditing (ISAs). He will be required to
prepare a Management Letter detailing his observations and comments, providing
recommendations for improvements in the accounting system and the internal control
environment. The audit report on the annual project financial statements and activities of the DA
will be submitted to IDA within six months after the end of each project fiscal year.
FM implementation Support
18. The project will be supervised on a risk-based approach. Supervision will focus on the status
of financial management system to verify whether the system continues to operate well and
provide support where needed. It will comprise inter alia, the review of audit reports and IFRs,
advice to task team on all FM issues, review of annual audited financial statements and
management letters. Based on the current risk assessment which is Moderate, there will be one
on-site visit supervision per year during the implementation and a review of transactions will be
performed on this occasion.
36
Implementation Support Plan
Based on the outcome of the FM risk assessment, the
following implementation support plan is proposed. The
objective of the implementation support plan is to ensure
the project maintains a satisfactory financial management
system throughout the project’s life.
FM Activity
Frequency
Desk reviews
Interim financial reports review Quarterly
Audit report review of the program Annually
Review of other relevant information such as interim internal
control systems reports.
Continuous as they become available
On site visits
Review of overall operation of the FM system One time by year (Implementation
Support Mission)
Monitoring of actions taken on issues highlighted in audit reports,
auditors’ management letters, internal audit and other reports
As needed
Transaction reviews (if needed) As needed
Capacity building support
FM training sessions During implementation and as and
when needed.
B. Procurement
19. Capacity Assessment, Risk and Mitigation Measures: A procurement capacity assessment
of the MPT has been conducted during project preparation on November 23, 2011. The potential
risks identified are the lack of experience and skills in relation to the Bank’s procurement
procedures and the lack of a procurement manual. The procurement unit established under the
MPT is new and bears no qualified procurement staff. The mitigation measures agreed upon are
therefore to: (a) recruit a Procurement Officer; (b) Organized procurement training for staffs of
MPT involved in the project procurement process; (c) use procurement consultant to assist the
MPT for complex/specialized procurement; (d) nominate a project Procurement Officer within
the Ministry’s Procurement Committee, and (e) prepare project procurement manual as part of
Project Implementation Manual. Taking into consideration the lack of capacity of the existing
procurement unit (CPMP) and internal procurement control committee (CCMP), the overall
project procurement risk has been rated as substantial.
20. Guidelines: Procurement and employment of consultants under the proposed project will be
carried out in accordance with: (i) the Bank “ Guidelines: Procurement of Goods, Works and
Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank
Borrowers” dated January 2011; (ii) Bank’s “Guidelines: Selection and Employment of
Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” ” dated
January 2011; (iii) the Bank “Guidelines on Preventing and Combating Fraud and Corruption in
37
Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and
revised in January 2011 (“Anti-Corruption Guidelines”) and (iv) the provisions of the Financing
Agreement.
21. Procurement Documents: Procurement will be carried out using the Bank’s Standard
Bidding Documents or Standard Request for Proposal (RFP) for all International Competition
Bidding (ICB) for goods and for the selection of consultants, respectively. For National
Competitive Bidding (NCB), the Recipient should submit a sample form of bidding documents
to the Bank for prior review and will continue to use this type of document throughout the
project once this has been agreed upon. The Sample Form of Evaluation Reports published by
the Bank will be used. In addition, no community preference will be applicable under NCB.
22. Frequency of Procurement Reviews and Supervision: The Bank’s prior and post reviews
will be carried out on the basis of thresholds indicated in the table below. The Bank will conduct
bi-annual supervision missions and annual Post Procurement Reviews (PPR); the ratio of post
reviews will be at least one out of five contracts. The Bank could also conduct an Independent
Procurement Review (IPR) at any time until two years after the closing date of the project.
38
Procurement and Selection Review Thresholds
Procurement/selection
methods
Prior review
threshold
(US$)
Comments
1. Works and Goods
ICB
Works
Goods
≥ 5,000,000
≥ 500,000
Method can be applied for any amount, but is
mandatory for contracts above the prior review
thresholds
LCB ≥ 300,000 Review of all contracts
NCB subject to the
modification requiring that no
community preference will be
applicable
N/A Review of the first two contracts independently of
amount. The method is applicable only for contracts
less than US$5,000,000 for works and less than
US$500,000 for goods
Shopping N/A Review of the first two contracts independently of
amount. Method applicable for contracts less than
US$50,000 for works and goods
Direct Contracting All amounts Review of all contracts
2. Consulting Services
QCBS ≥ 300,000 Review of the first two contracts independently of
amount
LCS ≥ 200,000 Review of the first two contracts independently of
amount
Selection under a Fixed
Budget (FBS) ≥ 200,000
Review of the first two contracts independently of
amount
CQS (for contracts ≤$US100,000)
≥ 50,000
Review of the first two contracts independently of
amount. Method applicable for contracts less than
US$100,000
Individual Consultants (IC) ≥ 50,000
Review of the first two contracts and other contracts
chosen on a case-by-case basis, independently of
amount.
Single Source Selection (SSS) All amounts Review of all contracts.
3. Training and Workshops
Training and workshops ≥ 10,000
On basis of detailed and approved annual plan (with
indication of venue, number of participants, duration,
detailed budget, etc.)
23. All training, terms of reference of contracts estimated to more than US$10,000, and all
amendments of contracts raising the initial contract value by more than 15 percent of the original
amount or above the prior review thresholds will be subject to IDA prior review. All contracts
not submitted to the prior review will be submitted to IDA post review in accordance with the
provisions of paragraph 4 of Annex 1 of the Bank’s Consultant Selection Guidelines and Bank’s
procurement Guidelines.
39
24. Procurement Plan: All procurement activities will be carried out in accordance with
approved original or updated procurement plans. The Procurement Plans will be updated at least
annually or as required to reflect the actual project implementation needs and capacity
improvements. All procurement plans should be published at the national level and in the Bank
website according to the Guidelines. The Government and the Bank have agreed upon the
Project procurement plan covering the first eighteen (18) months of the Project. Tables (a) and
(b) below represent the summary of this procurement plan
a) Summary of goods and non-consulting services
1 2 3 4 5 6 7 8 9
Ref.
No.
Contract
(Description)
Estimated
Cost US$
Procurement
Method
Pre-
qualification
(yes/no)
Domestic
Preference
(yes/no)
Review
by
Bank
(Prior
/ Post)
Expected
Bid-
Opening
Date
Comments
1
Acquisition of
Vehicle (4WD) 50,000.00 CF Yes 3/20/14
2
Carrier Hotel
building and
setting up -
Material/equipment
acquisition and
installation 5,000,000.00 ICB Yes 3/20/13
3 Office equipment
and furniture 80,000.00 NCB
Yes 3/5/13
4 Software setting 30,000.00 NCB Yes 12/21/13
5 FM software
6 Rehabilitation of
PIU’ s office 125,000.00 NCB
No 2/22/13
7
Internet and phone
connectivity for the
PIU 35,000.00
SHOPPING
No 12/5/12
8 Office supplies 10,000.00 SHOPPING Non
9
Office and IT
equipment for the
AIE 200,000 NCB Yes
10 Office furniture for
AIE 50 000 SHOPPING Yes
40
(b) Summary of Consulting Assignments
1 2 3 4 5 6 7
Ref Description of Assignment Estimated
Cost US$
Selection
Method
Review by
Bank
(Prior /
Post)
Expected
Proposals
Submission
Date
Comments
1
Feasibility study and
implementation support support
to set up the carrier hotel
700,000 QCBS Yes 24/07/13
2
Setting up PPP framework for
SPV and support for bandwidth
purchase
500,000 QCBS Yes 07/08/13
3 Hiring carrier Hotel local team
( 3 members) 150,000 IC Yes 30/08/13
4
Recruitment firm for M&E
specialist and team and local
team for carrier hotel
5,000 SSS
Contract amendment
for the same
recruitment firm
hired for the PIU
staff
5 Broadband strategy 250,000.00 QCBS Yes 02/02/14
6 Legal and regulatory framework
for an open-access regime 500,000.00 QCBS Yes 20/10/13
7 Regulatory Regime for
Dominance study 500,000.00 QCBS Yes 10/13/13
8 Price Regulation study 300,000.00 QCBS Yes 20/10/13
9 Fiscal study 150,000.00 QCBS Yes 3/11/13
10
Legal, Regulatory and
Institutional Framework for the
e-Society, including the creation
of a CERT
400,000.00 QCBS Yes 24/11/13
11 Design and Implementation of
specialized training on ICT 300,000.00 QCBS Yes 29/10/13
12 Consultant to support for issuing
new licenses in the sector 500,000.00 QCBS Yes 12/11/13
13 Feasibility study for Technology
Park 500,000.00 QCBS Yes 07/09/13
14 Consultant for implementation
support of broadband pilots 500,000.00 QCBS Yes 22/11/13
15 ESMP- RAP studies 70,000.00 SSS Yes 17/10/13
Possibility to hire
consultant who
developed the
ESMF-RPF
16 Monitoring and Evaluation
Consultant 100,000.00 IC Yes 29/12/13
Could also be hired
by the recruitment
firm
17 Hiring of a Communication
Agency 100,000.00 CQS Yes 05/01/14
18 Project Audit 60,000.00 LCS Yes 31/07/13
19 Setting up ANSR 250,000.00 QCBS Yes 25/08/13
20 Creation of AIE-Togo 200,000.00 QCBS Yes 19/01/14
21 Regulation Support 250,000.00 QCBS YES 9/16/14
22 Follow up of implementation for
ESMP 70,000.00 CQS Yes 8/10/12
Strategic advisors for ministry
( 2) IC 2/10/13
41
(c) Summary of Capacity building activities
25. Anti-Corruption Action Plan: The following measures will be carried out to mitigate
corruption risk:
Publication of Advertisements and Contracts: All publications of advertisements and
contract awards, will be done in accordance with the Guidelines requirements and
published through client connection system, on external websites, i.e. UNDB and
dgMarket websites;
Debarred Firms: Appropriate attention will be given to the need to ensure that
debarred firms or individuals are not given opportunities to compete for Bank-
financed contracts; and
Complaints: All complaints by bidders will be diligently addressed and monitored in
consultation with the Bank.
26. Procurement Filing. Procurement documents must be maintained in the project files and
archived in a safe place for at least two years after the closing date of the project. The Public
Procurement Committee of the relevant Ministry of the project, through the Procurement
Officers, will be responsible for the filing of procurement documents.
C. Environmental and Social safeguards
27. The establishment of carrier hotel is not expected to have significant negative environmental
impact. The proposed project is rated as a Category B. The potential environmental and social
impacts are likely to be small-scale and site-specific and thus easily remediable and reversible.
1 2 3 4 5 6
Ref Activity Description Estimated
Cost US$
Review by
Bank
(Prior /
Post)
Estimated
Duration
Start Date Comments
1 Launching of WARCIP-Togo
(Workshop) 12,000.00 Yes 3 days
August
2013
2 WARCIP-Togo Activities planning
(Workshop) 10,000.00 Yes 2 days Sept 2013
3 Studies validation workshop (2 years) 20,000.00 Yes
4
MPT Staff Training (2 years)
200,000.00 Yes
Based on pre-
approved training
plan
5
ART&P staff training ( 2 years) 200 000 Yes
Based on pre-
approved training
plan
6
PIU training (2 years) 75,000 Yes
Based on pre-
approved training
plan
7 Yes
Procurement training 30,000 Yes
42
The Environmental Safeguards Policies triggered are Environmental Assessment (OP/BP 4.01),
Natural Habitats (OP/BP 4.04), Physical Cultural Resources (OP/BP 4.11) and Involuntary
Resettlement (OP/BP 4.12). As the exact nature and location of investments may not be
determined up front, the GoT prepared and consulted upon an Environmental and Social
Management Framework (ESMF) and a Resettlement Policy Framework (RPF).
28. The proposed project is expected to have positive social benefits. The main social impacts of
the proposed project are the increased possibility of better access to ICT services for the
population and improved GoT service delivery. The project will contribute to (i) enabling ICT to
become a driver for sustainable economic growth; (ii) enabling the GoT to use ICT to improve
services; (iii) improving access and quality of ICT services for the general population,
businesses, and the GoT; and (iv)reducing isolation and enhance economic activities in rural
areas.
29. The Project will have limited negative environmental and social impacts. These are linked
building the carrier Hotel that could lead to: soil erosion (in dune areas); soil and water pollution;
loss of vegetation (tree felling); the disruption of life (waste from work), of socio-economic
activities and livelihoods located on the way (workshops, garages, shops, etc.); disturbance of
traffic; noise; dust; risk of accident and the generation of waste; but also the risk of vandalism
and social frustration when local workforce is not used as well as risks of accidents during the
works. A summary of the risks is available in the table below. The ESMF outlines: (i) mitigation
of impacts, (ii) collaboration between WARCIP PIU and Agence Nationale de Gestion de
l’Environnement ANGE (iii) strengthening PIU team by hiring environmental and social
specialists (iv) information to stakeholders involved in the implementation of the project and
public awareness; (v) a program of surveillance and monitoring; (vi) Institutional responsibilities
for environmental monitoring; (vii) the institutional arrangements for implementing the ESMF,
(ix) the recommendations for implementation; (x) the timing for the implementation of measures
and the Costs of environmental and social measures. Based on the outcomes of the screening
process, the requirement to carry out an Environmental and Social Impact Assessment (ESIA)
that includes an Environmental and Social Management Plan (ESMP) will be undertaken during
project implementation in parallel with technical feasibility studies of Project subcomponents.
30. The Project impacts on cultural property are limited. The terrestrial fiber optic links will be
built with the right-way of existing roads or railways and the IXP/Carrier Hotel/Datacenter will
be built on an existing technical site; therefore it is not expected to pose risks of damaging
existing community cultural property. Nevertheless, proposed subcomponents will be screened
for their potential impacts on cultural property and chance find procedures will be applied and
appropriate mitigation measures for both the identification and protection of cultural property.
The ESMF has provided the systematic steps to be followed once these properties are discovered
during project implementation.
31. The Project design has considered avoiding any impacts to natural habitat. The proposed
activities under this operation should not cross natural parks or reserves. However, the project
includes special arrangements for sensitive sites (wetlands and critical natural habitats). If the
works will result any pressures on natural ecosystems, fauna and flora, the ESMF has
recommended step to be followed during ESIA preparation in addition to avoiding these sites.
43
32. The Project design has considered avoiding any displacement of persons. The need for
involuntary resettlement resulting from land acquisition in specific subcomponents area will only
be known during project implementation when site-specific plans are available. The prepared
RPF includes guidance for preparing socio-economic surveys, a census of people and assets, and
appropriate eligibility and entitlement frameworks. Therefore, subcomponents will be screened
for application of the involuntary resettlement policy (OP 4.12) and any subcomponents
involving involuntary resettlement or land acquisition will only be approved (and disbursed
against) after preparation of a Resettlement Action Plan (RAP) acceptable to the Bank. The RPF
has considered procedures for identifying eligible project-affected individuals, calculating and
delivering compensation, and determining mechanisms for land dispute grievance redress as well
as mechanisms for adequately monitoring and evaluating the level of compliance.
33. For Togo, the total cost of activities is estimated at US$ 406,000. While Credit funds will not
finance land acquisition, the Credit may finance certain eligible Resettlement Costs to compensate
for the temporary or permanent disruption of the living environment, socio-economic activities and
livelihoods. The ESMF and RPF were reviewed and cleared by the Bank on March 18, 2013 and
disclosed in the in country and at the Infoshop on March 19 and March 20, respectively.
34. Institutional arrangements for implementation and monitoring: WARCIP Togo PIU will be
strengthened by hiring an environmental and social safeguards consultant (part time) who will
work closely with Agence Nationale de la Gestion Environnementale (ANGE). This
environmental and social focal point (SEFP) responsible for following up on safeguards concerns
to ensure that all subcomponents identified for operation financing have included consistent and
coherent environmental and social measures and are responsible for applying the safeguard
screening and mitigation requirements to each subproject. Both the Environmental and Social
Management and the Monitoring specialists of the project will be ensured by consulting firms
(preparation of technical files) and control firms (monitoring of work) to be recruited by the
National Coordination of the WARCIP Project, under the supervision of ANGE that will be
supported under the project for this purpose. These firms should have environmental and social
experts to effectively cover these aspects during (i) the preparation of technical documents and
(ii) the monitoring of the works.
44
Table : Summary of environmental and social risks as included in the ESMP
Project Phase N ° Impact Description Severity of
the impact
SIT
ES
PR
EP
AR
AT
ION
1 Destruction of the natural vegetation Medium
3 Extinction of the fauna and some of the wildlife habitat Low
4 Obstruction of the soil with plants debris and waste Medium
5 Air pollution due to dust Medium
6 Manifestation of respiratory/breathing problems among workers and
the local residents.
High
7 Destruction of trees and crops in rural areas Medium
CO
NS
TR
UC
TIO
N P
HA
SE
1 Deterioration of the soil structure/waterproofing and compaction of
the soil
Medium
2 Alteration of the borrowing sites topography for the backfilling
equipment
High
3 Harm to health and security of the employees and residents High
4 Habitations pollution due to dust Medium
5 Obstruction of the soil surface with various kind of waste Medium
6 Land tenure conflicts related to the cable and carrier hotel servitude High
7 Damages to archaeological and cultural sites High
8 Demolition of fences and paved terraces of houses and other
infrastructure
High
9 Slowing down of certain economic activities High
10 Closing of some passageways to the local population Medium
11 Conflict of interest between the workers and the population
regarding the use of the water
Medium
OP
ER
AT
ION
A
L P
HA
SE
1 Land subsidence at the piping/canalization High
2 Air pollution due to greenhouse gas emissions and dust Medium
3 Temporary job losses High
4 Odor and damage to the health and physical integrity of the
employees and of the community.
Medium
PR
OJ
EC
T
CL
OS
ING
OR
CA
NC
EL
LA
TIO
N
OR
DIS
MA
NT
LIN
G 1 Extinction of the fauna and the wildlife habitat Medium
2 Alteration of the soil structure and debris obstruction Medium
3 Obstruction of the soil with waste from dismantled
materials/equipment.
Medium
4 Some permanent job losses High
5 Damage to the health and physical integrity of the employees High
Source : SECDE/SOTED-AFRIQUE, janvier 2013.
45
D. Monitoring and Evaluation
35. An M&E system will be set up within the PIU to keep track of and evaluate implementation
progress of the proposed IDA project within the broader context of the institutional framework
for the telecommunications sector. Although increased geographical reach and reduction of
costs at the country level remains the hallmark of success of an enabling environment, the
project’s M&E system will seek first to measure results that are closely associated with project
activities. Hence, the first order of indicators that the M&E system will look at shall include
lower indicators related to quality, quantity, and time. Ultimately, improvement of laws and
decrees by the project activities will have positive ripple effects on the whole sector and on
service delivery.
36. The views of direct beneficiaries will be brought into the monitoring and evaluation process.
Comprehensive M&E reporting will be needed to monitor the results and performance of the
project. It will involve mainly the direct beneficiaries of project activities, but will be extended
to other beneficiaries such as telecommunications operators and private ICT firms, which
ultimately are the main beneficiaries of the project’s outcomes. The PIUs will review and
validate the reports on performance indicators and recommend corrective action if necessary.
E. Role of Partners
37. The World Bank is the main development partner working on the ICT sector in Togo. Other
partners include the African Development Bank, ITU and ECOWAS. The Ministry is discussing
with the African Development Bank possible financing for the construction and/or
strengthening of national connectivity and for e-government applications. The ITU and
ECOWAS are providing significant support in the areas of capacity building for the regulatory
Authority. The project main actors will coordinate with the development partners involved in
the sector to ensure complementarity of the different interventions.
46
Annex 4-Operational Risk Assessment Framework (ORAF)
Country: Africa
Project Name: WARCIP APL2 – Togo
Stage: Board
Project Stakeholder Risks Rating H
Description : Early indication shows strong commitment to PPP in Togo. However
there is a risk of private sector main stakeholders may not always have
the same immediate interests as the Government and may resist an
attempt to foster facility sharing at industry level.
Potential "veto" by 100% public owned incumbent over the proposed
purchase of capacity and proposed competition for international
connectivity
Risk Management: Use PPA resources to provide technical assistance and conduct consultation to agree on a PPP structure
that will make it attractive for private investment.
Use PPA to demonstrate strategic and economic incentives for Togo Telecom to willingly participate in
the proposed infrastructure.
Very strong commitment from Government on PPP agenda.
Work on mitigation measures to deal with resistance of Togo telecom by working in parallel on improving
sector efficiency. Reform activities related to (i) opening the sector to new players through ISPs, MVNO, etc,
(ii) removing constraints for operators to deploy alternative fiber infrastructure to Togo Telecom and (iii)
development of a neutral carrier hotel will create needed mitigation to ensure success of the project.
Resp: Client Stage: Preparation
and Implementation
Due Date :06/23/2013 Status: Ongoing
47
Implementing Agency Risks (including fiduciary)
Capacity Rating: S
Description : Capacity of the implementing agency is low. In addition, the project
includes complex schemes such as PPP which are new to the agencies
and sometimes the sector.
FM and procurement assessments of implementing agencies have been
conducted as part of project preparations.
Risk Management : (a) The Bank will fund targeted TA and capacity building activities as part of the operation throughout the
project implementation.
(b) The option of using existent PIUs was discussed with the clients and a
strong preference was expressed for a dedicated PIU. This will allow a better ownership of the project by the
implementing agencies and will ensure technical support needed from the line Ministry. The core PIUs staff
will consist of a project coordinator, procurement specialist, financial specialist, accountant and an office
assistant.
(c)Technical specialists will also be hired for implementation of the project. In addition national technical
teams will be hired for the carrier hotel to work closely with the international consultant during the feasibility
phase as well as during project implementation to build implementation capacity for running the carrier hotel
early on. The local team could be considered for hiring as full time staff of the SPV at a later stage to ensure
continuity.
Resp: (a) Client
(b) Client
(c) Bank
Stage: (a) Preparation +
Implementation
(b) Preparation
Preparation +
Implementation
Due Date : (a) Ongoing
(b) Ongoing
(c) Not yet due
Status:
(a) Not yet due
(b) Not yet due
Not yet due
Governance Rating: S
Description : Not always satisfactory adherence to the public procurement laws and
regulations, particularly with regards to an open and competitive
process.
Risk Management : (a) The Bank will fund targeted capacity building activities as part of the
program throughout the project implementation.
(b) Set up of a robust M&E system will allow for a thorough and comprehensive
monitoring of the project performance.
Resp: (a) Bank
(b) PIU
Stage: (a) Preparation +
Implementation
Preparation
Due Date : (a) Ongoing
(b) 11/30/2013
Status: (a) Not yet due
(b) Not yet due
48
Project Risks
Design Rating: S
Description : The project proposes to create competition on international connectivity
in Togo that could be resisted by Togo Telecom to protect their
investment in WACS cable. The cable was financed by Togo Telecom
and enjoyed by them as a monopoly. The creation of the carrier hotel
could also be resisted by Togo Telecom as it creates an alternative for
international access which will erode the monopoly rents enjoyed by
Togo Telecom for many years. The project includes significant reforms
for the sector that are likely to be resisted by Togo Telecom which has a
vested interest in the status quo.
The sector strategy 2011-2015 shows a clear commitment by the
Government to create enabling conditions for private sector investments.
Risk Management : PPA will provide extensive support for PPP negotiations, which are expected to be well advanced by
effectiveness. In addition reforms are included as triggers in budget support operation. Complementary TA is
ongoing to support the government with the reforms.
Resp: Client Stage: Preparation Due Date : 11/15/14 Status: on going
Social & Environmental Rating: S
Description : The exact path of the carrier hotel and links is not known yet. Negative
environmental and social impacts of the project could be the soil and
water pollution; loss of vegetation; generation of wastes from works,
disturbance/loss of socio-economic activities and livelihoods located on
the; disturbance of traffic; noise; dust; risks of land acquisitions, possible
destruction of crops. The potential environmental and social impacts are
likely to be small-scale and site-specific and thus easily remediable and
reversible.
Risk Management : The exact location of the neutral carrier hotels / national and regional IXP
(“virtual landing”) is not yet available. An Environmental and Social Management Framework (ESMF) and
Resettlement Policy Framework (RPFs) have been prepared and consulted upon for each country prior to
Project appraisal. These documents have been publicly disclosed in the country as well as in the Bank
InfoShop.
Once the final paths / sites are chosen and the specific civil works identified,
an Environmental and Social Assessment including an ESMP, and a RAP, as and when necessary, will also be
prepared.
The PIU will be strengthened by hiring an environmental and social safeguards consultant (part time) who
will work closely with Agence Nationale de la Gestion Environnementale (ANGE). During and throughout the
project supervision, the World Bank task team will assess the appropriate implementation of the
environmental and social mitigation measures and subsequently recommend additional strengthening
measures as needed.
Resp: Client Stage: Preparation Due Date :09/30/2013 Status: ESMF-
RPFcompleted
ESMP/RAP Not
yet due
Program & Donor Rating: L
Description : PDO achievement is not dependent on other projects and activities.
There is a possible complementary intervention by the African
development Bank. The scope is yet to be finalized.
Risk Management :
Resp: Donors Stage: Preparation Due Date :09/30/2013 Status:Not yet
due
49
Delivery Monitoring & Sustainability Rating: S
Description : There is no existing PIU within the sector Ministry.
Key data collections and sharing, particularly from operators, may be
difficult as the market is highly competitive.
Setting up of a PPP with local operators and ISPs for the missing links
shall ensure effective operation and maintenance of the infrastructure
(missing links and carrier hotels).
Risk Management : (a) institutional capacity building will be provided throughout the project
implementation phase to the PIU being set up for the project
(b) Training and TA will be made available for monitoring and evaluation for
the sector Ministry and for the PIU. The system will be designed in such a way
as not to affect the operators’ competiveness.
(c) Use PPA to discuss with private sector and agree on a PPP structure that will
make it attractive for private investment.
Resp:
(a) Client
(b) Client
(c) PIUs
Stage: (a) Preparation
(b) Preparation
(c) Preparation
Due Date :09/30/2013 Status: Not yet
due
Overall Risk Following Review
Implementation Risk Rating:
Comments: Comments:
50
Annex 5: Implementation Support Plan
Country: Africa
Project Name: WARCIP APL2 - Togo
1. Resources under the PPA are expected to ensure that the policy, regulatory, environmental and
social safeguards, as well as requisite capacity are in place before Board. The PPA is also expected
to ensure that the Government has the requisite Transaction, Legal and Regulatory experts to
ensure open access, effective structuring of PPPs to own and manage communications
infrastructure.
2. The strategic partnerships and collaboration, combined with active client engagement and
upfront preparatory work, are expected to facilitate achievement of the PDO. Furthermore the
team has conducted preliminary assessments of the institutions expected to execute the Program
to ensure that they meet the minimum requirements of the World Bank’s fiduciary obligations.
3. The main focus in terms of support to implementation
Time Focus Skills Needed Resource
Estimate
Partner Role
First 6
months
Transaction/Legal
Advisory Work
Procurement,
FM, Program
Coordinators
Experienced
Transaction and
Legal Teams
$2m
12-36 months Studies to improve
sector efficiency
$7 m
Project
duration
Strengthening of
regulatory and policy
capacity
Regulatory and
ICT specialists
$2 m
Implementation Support Plan
4. The Bank team members will be based either in Washington DC or in the Africa region, and
will be available to provide timely, efficient and effective implementation support to the client.
Formal supervision and field visits will be carried out semi-annually initially, with possibility for
annual visits in later years of the project. Detailed inputs from the Bank team are outlined below:
Technical inputs. Technical telecommunications and regulatory related inputs are required
to review bid documents to ensure fair competition through proper technical
specifications and fair assessment of the technical aspects of bids. ICT Policy Specialists
and regulatory specialists will provide technical support and conduct supervision visits
whenever needed. The team will liaise with the legal department to support with the
review on PPP instruments, licenses and corporate/contractual documents developed
under the project.
51
Fiduciary requirements and inputs. Training will be provided by the Bank’s financial
management specialist and procurement specialist before the commencement of project
implementation as needed. The team will also help identify capacity building needs to
strengthen its financial management capacity and to improve procurement management
efficiency. Both the financial management and the procurement specialist will be based
in the region to provide timely support. Formal supervision of financial management will
be carried out semi-annually or annually, while procurement supervision will be carried
out on a timely basis as required by the client.
Safeguards. Inputs from an environment specialist and a social specialist will be
required, though the project’s social and environmental impacts are limited and client
capacity is generally adequate. No field visits are likely to be required, but this will be
confirmed - the social and environmental specialists will be available on a need basis.
Operation. The Task Team will also provide day to day supervision of all operational
aspects, as well as coordination with the client and among Bank team members.
5. The main focus of implementation support is summarized below.
Time Focus Resource Estimate Partner
Role
Project
duration
Team leadership, technical and
procurement review of the bidding
documents and Institutional
arrangement and project supervision
coordination
ICT policy and regulatory
Specialists
15 SWs
Procurement training
Procurement specialist(s)
2 SWs
FM training and supervision
FM specialist
2 SWs
Environmental and Social Issues
Social specialist
0.5 SWs
Environmental specialist(s)
0.5 SWs
Note: SW – Staff-Week
52
6. Staff skill mix required is summarized below.
`
Skills Needed Number of Staff Weeks Number of Trips Comments
Task team leader 12 SWs annually Fields trips as
required.
DC based
Procurement 5 SWs annually Country
office
based
Social specialist 2 SWs annually Country
office
based
Environment specialist 2 SWs annually Fields trips as
required.
Country
office
based
Financial management
specialist
2 SWs annually Country
office
based
Legal support 2 SW Fields trips as
required
DC based
Technical support 3 SW Fields trips as
required
DC and
country
office
based
53
Annex 6: Economic and Financial Analysis
Country: Africa
Project Name: WARCIP APL2 - Togo
1. Open and non-discriminatory access to international capacity is needed to meet existing
and future demand for reliable and affordable capacity. Togo is currently dependent on a
single submarine cable – WACS - for its international capacity requirements. Currently this
capacity is owned and managed exclusively by Togo Telecom without open access principles. A
PPP framework to allow other operators to have access to capacity on open and non-
discriminatory terms is key for the development of the broadband market in Togo.
2. Creation of a PPP for construction of a carrier hotel/IXP is the most cost-effective long-
term solution for addressing Togo's future communication infrastructure needs. Through
Togo Telecom's investment in WACS, its national backbone and cross border connections, the
country has a potentially cost-effective national and international infrastructure in place, however
as a monopoly, Togo Telecom has no incentive lower prices and the benefits of the investment
for the country will not be fully realised unless capacity is available to all operators on an open
access basis. In addition, if priced competitively, the carrier hotel facilities would provide
important alternative international routes in the region - for landlocked Burkina Faso in
particular, but also potentially as a backup route for Benin and Niger. Once capacity is made
available at competitive prices the capacity in use is expected to increase dramatically due to the
much lower pricing that can be achieved. High capacity international connectivity will mitigate
the existing technological marginalization of Togo and bridge the digital divide by expediting
broadband rollout, e-Government and e-Services, new media and ICT development in urban and
rural Togo, for the benefit of the public. Specific steps would need to be taken, however, in
particular to establish a clear regulatory regime for the landing point, in order to ensure that Togo
fully benefits from the potential connectivity that the cable offers.
3. Benefits of Carrier Hotel investment: lower costs and improved reliability in accessing
national and international online services. For Togo, the key ICT infrastructure need is to
ensure the presence of infrastructure that can provide the whole population with low cost reliable
connectivity, both internationally and domestically. In addition the proposed carrier hotel will
create the incentive for cross-border connections and local hosting which will provide domestic
backup and secure alternate international routes via Ghana and Benin, which have 6 different
submarine cable landings between them. Aside from improving reliability, this also provides
competitive alternative routes to WACS, ensuring that domestic prices for international capacity
are kept low. This will give Togo a highly reliable and much more affordable service which will
also see demand from across the nation's borders. If capacity is reliable and reasonably priced,
Burkina Faso and Niger are likely to purchase capacity. While these countries all have other
neighbours from which to obtain international capacity, most of them will be likely route at least
20-30% of their traffic via Togo to maintain their restoration links. Given that world-wide,
demand for affordable bandwidth continues to exceed supply, and that Burkina Faso, Niger and
Benin are also likely to require alternate sources of international capacity that could be delivered
via Togo, there is very little likelihood of the capacity made available being under-used, as long
as the national backbone and Carrier Hotel/IXP can deliver the wholesale bandwidth at a
competitive price and where it is needed.
54
4. Carrier Hotels use well-proven technologies and business models, and involve no
appreciable technology and little economic risk. The Carrier Hotel and IXP would be designed
according to the latest standards. Therefore the project provides a smooth upgrade path for
increasing the capacity available to the same levels as elsewhere in the world. Establishing the
PPP and enabling policy and regulatory environment could lead to some initial delays, but given
the high priority that government is giving to ICT development, it is expected that every effort
will be made to ensure the Carrier Hotel/IXP is operational as soon as possible.
5. The proposed project recognizes that infrastructure and policy environment bottlenecks
need to be dismantled to ensure better communications access. Technical design of the
project reflects lessons learned in the ICT sector and international best practices. For most
developing countries, a major obstacle to the uptake of ICT remains the lack of adequate access
to ICT infrastructure. A lack of investment in ICT infrastructure and access networks, coupled
with inefficient provision of services, are the most important factors undermining the
development of networked economies. The main lesson derived is that success is mainly market
driven. Creating a predictable legal and policy environment leading to effective competition in
the sector is key to improving investor confidence and restoring trust in the ICT sector. The focus
of the proposed project is to create a PPP framework for international connectivity. The project
will establish an enabling institutional and regulatory environment to help attract and sustain
investment in the telecommunications sector in granting open access to connectivity for existing
and future competitors of Togo Telecom.
6. Fiber cable has an advantage over alternatives in terms of price and quality of service. Satellite is not an option, as it is more expensive than cross-border capacity purchase, and
satellite also suffers from lower quality of service than fiber. While it is possible to circumvent
these problems to some extent through use of sophisticated traffic shaping devices at each end of
the link, this creates additional capital and human resource costs for the user. A new type of
satellite service that is based on 'medium earth orbit' satellites (MEOs), which provides lower
levels of latency due to their greater proximity to earth, could meet needs for improved
international connectivity. However, the only proposed service of this type, called 03B, has yet to
launch any satellites and is still much more costly when compared to the fiber options, so it was
also eliminated from further consideration as a national solution, although in the future in some
remote areas it may have value for providing localised connectivity where there is no fiber.
7. Assumptions of financial analysis. Financial comparisons of the options were made using
the following assumptions:
Capacity purchase of 1 STM-16 to Europe from a neighbouring country on a
15-year IRU basis.
Carrier Hotel and IXP establishment will cost USD $4.98 million23
Annual operating and maintenance costs: 3% of CAPEX for IRU and 6% for
carrier hotel
A discount rate of 15% on financing
Study Period: 10 years, commencing in 2013
23
The cost covers the building plus the equipment
55
Revenues from the project begin in 2014
For international traffic, operators competing with Togo Telecom will
purchase 5% of the international capacity required in 2014, rising to 25% over
the study period. Countries in the region (Niger, Benin and Burkina Faso)
purchase 10% of their capacity needs from Togo, rising to 20% over the study
period) for security/restoration purposes.
Annual broadband subscriber growth is 50% in year one, declining to 10%
over the study period24
A wholesale capacity price of $100 to 200/Mbps/month dropping to USD
$100-50/Mbps/month over the study period. Associated rack space rental
revenues are based on market prices in the region.
An average international traffic per subscriber rising from 25Kbps to 60Kbps
over the study period.
8. Depending on the revenue model and capacity pricing adopted the investment capacity
and the Carrier Hotel in Togo will breakeven between 2017 and 2019, after which the
project will be cash-flow positive if wholesale pricing levels are maintained. The investment
will see Togo breakeven by 2019, depending on the wholesale price adopted, with an NPV to
2023 of US$8.49 million and an IRR of 26.57%, (assuming an average wholesale bandwidth sale
price of US$200/Mbps/month, declining to US$100 in year 5), and an NPV of US$958 600 with
an of IRR of 16.32%, assuming US$100/Mbps/month initially, declining to US$50 wholesale
price in year 5. For Togo, pricing capacity for traffic in the US$100-200/Mbps/month range is
likely to be sustainable and would stimulate use. This also takes into account bandwidth pricing
trends in other regions such as East Africa. The final break-even year will depend on actual
capacity uptake and the wholesale price of bandwidth. After 2019 at the latest, the project would
be cash-flow positive and substantial revenues would be made if these wholesale pricing levels
are maintained.
9. Previous experience with fiber cables shows a rapid increase in demand when price of
bandwidth decreases and availability increases. Lowering the cost of access has a strong
impact on the amount of bandwidth sold. This can be modelled using a price elasticity curve.
SAT-3 pricing, for which the most data is available, has show a clear relationship between
volume and tariffs. The chart below compares the price of access on SAT-3 (per E1 half-circuit to
Sessimbra, Portugal) against the volume of international bandwidth sold. This shows the effect
that price decreases between 2004 and 2006 had on the volume of bandwidth sold in each of four
countries where comparable data was available. The increase in international bandwidth demand
increases because broadband services first become more viable for operators to deploy, and
secondly because as retail prices decrease, the service becomes increasingly affordable and
penetration increases. Réunion is included here as a particularly clear case which shows that
when price was US$20,466 per Mb the volume was just 4 Mbps, but when it decreased to
US$1,967 volume increased to 180 Mbps. This increase comes about because of the multiplier
24 This is probably conservative given the pentup demand and the trends elsewhere in more mature markets which
are still growing at 70% or more. For example in Morocco, the total number of internet subscribers increased by
70% year-on-year to end 2011, reaching 3.2m (10% of the population). Internet access via 3G represented 81%
of the market, with the remaining 19% from ADSL connections.
56
effects: monthly prices for broadband decrease, in turn improving affordability and increasing
uptake of services. Although pricing information has not been tracked in Kenya, the chart further
below also reinforces this picture, showing the extremely rapid growth in international capacity
used following the arrival of competing submarine cables in Mombasa which reduced the
wholesale price of capacity by a factor of over 10.
Figure 10.1: Bandwidth Price Elasticity
Figure 10.2: Kenya Bandwidth Increases Following Submarine Cables Arrival
10. The Carrier Hotel (and IXP) will create improved connectivity by allowing the
different operators to have alternative and additional access beyond WACS. Carriers with
international infrastructure are expected to connect with the Carrier Hotel to provide services to
other operators/large users and also to ensure the security and redundancy of their own links by
having a single point from which to cross-connect. The presence of the Carrier Hotel would also
attract other international operators (as well as content providers) to land their fibre infrastructure
and data servers there, as the most cost effective place to meet, peer, and trade capacity. This
passive infrastructure reduces the cost for the local operators to connect to international
infrastructure by just having one place to connect with, and creates a more fluid open market for
Price Elasticity On Sat-3
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
- 1,000 2,000 3,000 4,000 5,000
Volume (Mbps)
Pri
ce (
US
$ p
er
mo
nth
)
Ghana Nigeria
Reunion South Africa
Nigeria PE South Africa PE
Ghana PE Reunion PE
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0
10000
20000
30000
40000
50000
60000
Kenya International Bandwidth (Mbps)
57
capacity, because customers can switch between suppliers in seconds, (or change the volume of
capacity obtained from each of their suppliers) simply through a configuration change on the
router or changing a cross-connect cable on the fibre switchboard.
11. The predicted international bandwidth demand for Togo is expected to be over 42Gbps
by 2023, but this assumes a competitively priced and pervasive national fibre backbone, an
enabling policy and regulatory environment for new market players and the availability of
sufficient radio spectrum. To be able to serve the public outside Lome effectively it will be
necessary to ensure that all operators can interconnect their base stations with competitively
priced fibre and that new operators are allowed to enter the market to compete with Togo
Telecom. In addition, given world-wide trends in broadband adoption levels, and particularly the
potential created by the explosion of wireless broadband25 (3G/4G/LTE/WiMax/WiFi), the
traffic estimates used in the analysis are relatively conservative, especially toward the end of the
analysis period, by which time it is expected that almost every mobile phone user would have
access to broadband on their handset26 and the majority of residences will have a wireless or
ADSL triple-play set-top box (voice telephony, Internet and IP-TV). However, this also requires
the availability of sufficient radio spectrum in the needed wavebands, otherwise the operators
may not be encouraged to introduce low cost services in the near future. The most desirable
wavebands are currently used by analog TV and until migration to digital TV takes place,
efficient use of spectrum will be likely to depend on the use of the latest radio protocols (IEEE
802.22) which uses white spaces in the TV frequency spectrum27
to bring broadband access to
hard-to-reach, low population density areas, typical of rural environments.
25 3G data service uptake from the consumer has been massive and unprecedented in other developing countries
where competitively priced services have become available, and in most of these countries the majority of Internet
access now takes place via the mobile networks.
26 New 3G capable smartphones are now being sold in Africa for $75-100 (without contract or network locking),
andpricesareexpectedtocomedownmuchfurtheroverthenext10years.
27 The IEEE 802.22 WRAN standard is aimed at using cognitive radio (CR) techniques to allow sharing of
geographically unused spectrum allocated to the Television Broadcast Service, on a non-interfering basis.
58
Bandwidth demand forecast for Togo
Estimate Basis
International
Bandwidth
(Mbps)
Estimated
number of
Subscribers
Penetration Population
Internat
ional Kbps/
Subscriber
Bps/ total
populatio
n
Current Status in Togo (end 2011) 1,200 35,683 0.6% 6,366,984 34 0.2
Senegal comparison (2011) 8,500 281,000 2.22% 12,643,799 30 0.7
2023 Forecast for total Togo
International traffic 42,466 707,772 8.7% 8,179,996 60 5.2
Bandwidth Requirement Estimates
Based on (cross check):
Low Broadband Definition (256Kbps),
Low Penetration Scenario (10%) 6,701 818,000 10.00 8,179,996 205 1
Low Broadband Definition (256Kbps),
Low-Medium Penetration Scenario
(20%) 11,727 1,635,999 20.00 8,179,996 179 1
Medium Broadband Definition (1Mbps),
Low Penetration Scenario (10%) 26,176 818,000 10.00 8,179,996 800 3
Medium Broadband Definition (1Mbps),
Low-Medium Penetration Scenario
(20%) 45,808 1,635,999 20.00 8,179,996 700 6
Optimal Broadband Definition
(20Mbps) Low Penetration Scenario
(10%) 523,520 818,000 10.00 8,179,996 16000 64
Medium Broadband Definition (1Mbps),
Medium Penetration Scenario (40%) 65,440 3,271,998 40.00 8,179,996 500 8
Optimal Broadband Definition
(20Mbps) Medium Penetration
Scenario (40%) 1,722,104 3,271,998 40.00 8,179,996 10000 211
12. Capacity requirements have the potential to continue to advance rapidly as prices
drop, access device affordability improves, ICT literacy increases and more relevant local
applications are developed. Due to pent up demand, extrapolating trends in current broadband
subscriber growth will tend to under-estimate the future broadband user-base, and there are
similar considerations regarding extrapolating capacity requirements per user. Globally, the last
10 years has seen massive increases in end-user bandwidth demand resulting from the popularity
of social networks, image and video sites such as FaceBook and YouTube. Fortunately these
bandwidth demands have kept pace with technology developments, which are now seeing
domestic broadband services delivering 100Mbps and even 1Gbps in some advanced countries.
If Togo is to have the opportunity catch up, at least partially with these developments over the
next decade, then we can expect a relatively high level of growth in bandwidth use, perhaps
similar to Kenya where international traffic grew by over 25 times between 2008 and 2011. To
reflect this, the Togo analysis is based on an initial 25Kbps per subscriber of international
capacity rising to 60Kbps. Similarly, a 50% average annual subscriber growth is expected in the
years immediately following the availability of increased low cost capacity, to reach about 10%
59
average penetration by 202328
. Consumer demand for high bandwidth multimedia services
delivery far overshadows business traffic, but the additional capacity required, especially for
mining, shipping, import/export services could generate significant Internet traffic. The
government's priorities to support human resource development, e-education and other advanced
use of ICTs as part of its ICT strategy are also expected to help grow bandwidth demand.
13. Fast Internet has been shown to boost the productivity of firms as well as generate
employment opportunities. New growth theory suggests that long-run economic growth
emanates from the spill over arising from innovation and investment in new technologies. Fast
Internet access can be considered one important new technology, and broadband is increasingly
recognized to promote productivity and boost aggregate economic growth. Studies have shown
that firms using broadband (defined by the ITU as connection speeds above 256 Kbps) were on
average 10% more productive than firms using dial-up internet access. Faster internet speeds are
also causally related to increased employment opportunities with analysis showing that for every
one percentage point increase in broadband penetration within a region, employment increases
by 0.2-0% per year for the private, non-farm economy (Crandall et al, 2007). Indeed, studies
show a clear positive relationship between employment and broadband penetration in the
manufacturing and service industries, with business growth shown to be particularly significant
for larger businesses and for IT intensive sector (Lehr et al, 2006). The results of these studies
support the expectation that broadband penetration enhances economic activity. Increased
broadband speeds and less expensive data access have the potential to promote economic
activities in Togo, supporting the growth and productivity of businesses and gradual transfer of
employment from agricultural to service industries and expansion of the region’s nascent ICT
sector.
14. The project's delivery of increased access to Internet, will also have other positive
impacts, such as better education opportunities, improved public administration and
increased government revenues. The project will bring significant benefits to Togo in a
number of other ways including (i) increased public access to Internet services (ii) a broad range
of social benefits through increased labor productivity, learning opportunities for youth,
participation by women in the labor market, and improved public administration (iii) greater
fiscal returns due to new sources of revenue for the GoT. It must be noted, however, that the
economic and financial benefits of a technical assistance component are generally difficult to
quantify because of the inadequacy of data available at the outset.
28 A 10% penetration rate for broadband may seem low given the expected uptake in wireless smartphones over
the coming years, but as observed by operators in North Africa and Europe, smartphone bandwidth-use is
virtually insignificant compared to high-speed broadband usage of desktops, laptops and triple/double-play set-
top boxes connected to either the fixed networks, or mobile networks using wireless modems. Thus the 10%
population penetration figure may be more closely equated to a 50-70% household penetration level. Similarly
the 60Kbps/user of international capacity requirement may appear small, but is verified by operator field data in
more advanced economies, and is explained by: a) as markets mature a more significant amount of traffic is
local rather than international, b) high bandwidth international traffic is cached locally (such as YouTube), c)
60Kbps is the multiplexed capacity permanently allocated per subscriber, and since the user is not online 24hrs a
day, this is the user's actual utilisation averaged over an entire day.
S AS AVVA N N AA N N A
K A R AK A R A
C E N T R A LC E N T R A L
P L AP L A T E A UT E A U
M A R I T I M EM A R I T I M E
O G O UO G O U
Z I OZ I O
V OV O
B A S S A RB A S S A R
K E R E NK E R E N
O T IO T I
TT ÔÔ N EN E
LACS
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SOTOUBOUASOTOUBOUAN YN YA L AA L A
TCHAOUDJOTCHAOUDJO
Mont AgouMont Agou(986 m) (986 m)
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SokondSokondéé
MangoMango
TTchambachamba
KantKantéé
NiamtougouNiamtougou
AtakpamAtakpaméé
DapaongDapaong
KaraKara
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B E N I N
NIG
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To o Yendiendi
To o NavrongoNavrongo
To o OuagadougouOuagadougou
To o DiapagaDiapaga
To o NatitingouNatitingou
To o KokoroKokoro
To o SavSavé
To o Kétoutou
To o AccraAccra
To o AccraAccra
To o Yendiendi
To o BimbilaBimbila
To Lagoso Lagos
To o ParakouParakou
To o ParakouParakou
To o Tamaleamale
S AVA N N A
K A R A
C E N T R A L
P L A T E A U
M A R I T I M E
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B A S S A RASSOLI
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Kpagouda
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NIG
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Bight of Benin
LakeVolta
To Yendi
To Navrongo
To Ouagadougou
To Diapaga
To Natitingou
To Kokoro
To Savé
To Kétou
To Accra
To Accra
To Yendi
To Bimbila
To Lagos
To Parakou
To Parakou
To Tamale
Faza
oM
ts.
Mont Agou(986 m)
0° 1°E
1°E
2°E 3°E
7°N
8°N
9°N
7°N
6°N
8°N
9°N
10°N
11°N 11°N
TOGO
This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.
0 20 40
0 10 20 30 40 50 Miles
60 Kilometers
IBRD 33497
NOVEMBER 2004
TOGOSELECTED CITIES AND TOWNS
PREFECTURE CAPITALS
REGION CAPITALS
NATIONAL CAPITAL
RIVERS
MAIN ROADS
RAILROADS
PREFECTURE BOUNDARIES
REGION BOUNDARIES
INTERNATIONAL BOUNDARIES
