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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 66222-GA
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED LOAN
IN THE AMOUNT OF US$58 MILLION
TO THE
GABONESE REPUBLIC
FOR THE
GABON PROJECT
UNDER
THE FOURTH PHASE OF THE CENTRAL AFRICAN
BACKBONE PROGRAM (APL4)
March 8, 2012
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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ii
CURRENCY EQUIVALENTS
(Exchange Rate Effective January 2012)
Currency Unit = Central African CFA (XAF)
XAF 500 = US$1
US$ 0.002 = XAF 1
FISCAL YEAR
January 1 – December 31
ABBREVIATIONS AND ACRONYMS
$ United States dollar, all dollars are US dollars unless otherwise indicated
ACE Africa Coast to Europe
AfDB African Development Bank
AF Additional Financing
AFD Agence Française de Développement
French Development Agency
ANGT
Agence Nationale des Grands Travaux
National Agency for Major Works
ANINF
Agence Nationale des Infrastructures Numériques et des Fréquences
National Agency for Digital Infrastructure and Frequencies
APL Adaptable Program Loan
ARAP Abbreviated Resettlement Action Plan
ARCEP
Agence de Régulation des Communications Electroniques et des Postes
Posts and Electronic Communications Regulatory Agency
AU African Union
BOT Build Operate and Transfer
BP Bank Procedures
CAB Central African Backbone
CAB2 STP Central African Backbone Program APL 2 – São Tomé and Príncipe Project
CAB3 CG
CAB4 GA
CAGR
CAPEX
Central African Backbone Program APL 3 – Congo Project
Central African Backbone Program APL 4 – Gabon Project
Compound Annual Growth Rate
Capital Expenditure
CAR Central African Republic
CAS Country Assistance Strategy
CCSPFOG Commission chargée du suivi des projets de fibre optique au Gabon
Fiber Optic Commission
iii
CEMAC Communauté Economique et Monétaire des Etats de l’Afrique Centrale
Economic and Monetary Community of Central Africa
C&MA Construction and Maintenance Agreement
CN-TIPPEE National Commission – Labor Intensive Small-Scale Public Infrastructure Works
Commission Nationale des Travaux d'Intérêt Public pour la Promotion de
l'Entreprenariat et de l'Emploi
the entity established under Ministerial Decision No. 000007/PRIMPPD, dated
January 4, 2006, which will be responsible for the procurement and financial
management aspects of CAB4 GA (Project Implementation Unit)
CPS Country Partnership Strategy
CQS Consultant Qualification Selection
DA Designated Account
DFIs Development Financial Institutions
DRC Democratic Republic of Congo
EIA Environmental Impact Assessment
EMP Environmental Management Plan
ESIA Environmental and Social Impact Assessment
ESMF Environmental and Social Management Framework
ESMP
FBS
Environmental and Social Management Plan
Fixed Budget Selection
FM
FMM
Financial Management
Financial Management Manual
FMR
FMS
Financial Management Report
Financial Management Specialist
FY Financial Year
GDP Gross Domestic Product
GoG Government of Gabon
GNI Gross National Income
IBRD International Bank for Reconstruction and Development
ICB International Competitive Bidding
ICPC International Cable Protection Committee
ICT Information and Communication Technology
ICS Individual Consultant Selection
IDA International Development Association
IFC International Finance Corporation
IFR
IPDP
IPP
IPPF
Interim Financial Report
Indigenous People Development Plan
Indigenous Peoples Plan
Indigenous Peoples Planning Framework
IRR Internal Rate of Return
IRU Indefeasible Right of Use
ISO International Organization for Standards
ISP Internet Service Provider
ISR Implementation Status Report
ITU International Telecommunication Union
IXP Internet Exchange Point
iv
Kbps Kilobit per second
KPI Key Performance Indicators
KVA Kilo Volt Amps
Mbps Megabit per second
MARPOL International Convention for the Prevention of Pollution from Ships
MCPEN Ministère de la Communication, de la Poste et de l’Economie Numérique
Ministry of Communication, Post and Digital Economy
MECIT Ministère de l’Economie, du Commerce, de l’Industrie et du Tourisme
Minister of Economy, Trade, Industry and Tourism
MHUEDD Ministère de l’Habitat, de l’Urbanisme, de l’Écologie et du Développement
Durable
Minister of Housing, Urbanism, Ecology and Sustainable Development
MIGA Multilateral Investment Guarantee Agency
MMPH Ministère des Mines, du Pétrole et des Hydrocarbures
Minister of Mining, Petrol and Oil
M&E Monitoring and Evaluation
NCB National Competitive Bidding
NPV Net Present Value
OP Operational Manual
OPEX Operating Expenses
ORAF Operational Risk Assessment Framework
PAD Project Appraisal Document
PAP Project Affected People
PDIL Projet de Développement des Infrastructures Locales
Local Infrastructure Development Project
PDO Project Development Objective
PFES Point Focal Environnement et Social
Environmental and social focal point
PFM Public Financial Management
PIM Project Implementation Manual
PIU Project Implementation Unit
PIH Provision pour Investissement en Hydrocarbures
Oil Investment fund
PPA Project Preparation Advance
PPP Public-Private Partnership
PS Secrétaire Permanent
Permanent Secretary
PSGE Plan Stratégique Gabon Emergent
Emerging Gabon Strategic Plan
QCBS Quality and Cost Based Selection
RAP Resettlement Action Plan
RFS Ready For Service
RPF Resettlement Policy Framework
RTA Reimbursable Technical Service Agreement
SETRAG Gabonese railway company
Société d'Exploitation du Transgabonais
v
SME Small and Medium Enterprises
SNEEG Stratégie Nationale d’Égalité et d’Équité de Genre
National strategy for Gender Equity
SPV Special Purpose Vehicle
STP São Tomé and Príncipe
UNCLOS United Nations Convention on the Law of the Sea
UNDP United Nations Development Program
UNFPA United Nations Population Fund
USD United States Dollar
WACS West African Cable System
WARCIP West Africa Regional Communications Infrastructure Program
WBG
XAF
World Bank Group
Franc CFA
CFA franc
Vice President: Obiageli Katryn Ezekwesili
Country Director for CAB4 Gabon: Gregor Binkert
Regional Integration Director: Yusupha B. Crookes
Sector Director: Jose Luis Irigoyen
Acting Sector Manager Randeep Sudan
Task Team Leader for the Program: Jérôme Bezzina
Task Team Leader for CAB4 Gabon: Michel Rogy
vi
GABONESE REPUBLIC
GABON PROJECT
FOURTH PHASE OF THE CENTRAL AFRICAN BACKBONE PROGRAM (APL4)
Table of Contents
I. Strategic Context ..................................................................................................................... 1
A. Country Context ............................................................................................................... 1
B. Sectoral and Institutional Context .................................................................................... 2
C. Higher Level Objectives to which the Project Contributes .............................................. 7
II. Project Development Objectives........................................................................................... 10
A. PDO ................................................................................................................................ 10
B. Beneficiaries ................................................................................................................... 10
C. PDO Level Results Indicators ........................................................................................ 10
III. Project Description............................................................................................................. 12
A. Project components ........................................................................................................ 12
B. Project Financing............................................................................................................ 13
C. Lessons Learned and Reflected in the Project Design ................................................... 16
IV. Key Risks ........................................................................................................................... 17
V. Implementation ..................................................................................................................... 19
A. Institutional and Implementation Arrangements ............................................................ 20
B. Results Monitoring and Evaluation ................................................................................ 22
C. Sustainability .................................................................................................................. 22
VI. Appraisal Summary ........................................................................................................... 23
A. Economic and Financial Analysis .................................................................................. 23
B. Technical ........................................................................................................................ 24
C. Financial Management ................................................................................................... 29
D. Procurement ................................................................................................................... 31
E. Social and Environment ................................................................................................. 31
F. Grant conditions and covenants ......................................................................................... 33
Annex 1: Results Framework and Monitoring.............................................................................. 38
Annex 2: Detailed Project Description ........................................................................................ 42
Annex 3: Implementation Arrangements ...................................................................................... 48
Annex 4 Operational Risk Assessment Framework (ORAF) ....................................................... 80
vii
Annex 5: Implementation Support Plan ........................................................................................ 86
Annex 6: Team Composition ........................................................................................................ 90
Annex 7: Economic and Financial Analysis ................................................................................. 91
Annex 8: CAB Program Background and Vision ....................................................................... 106
Annex 9: Map section ................................................................................................................. 109
viii
PAD DATA SHEET
AFRICA
GABONESE REPUBLIC
GABON PROJECT CENTRAL AFRICAN BACKBONE – APL4
PROJECT APPRAISAL DOCUMENT
AFRICA
ICT Sector Unit
Date: March 5, 2012
Country Director: Gregor Binkert
Regional Integration Director: Yusupha
B.Crookes
Sector Director: Jose Luis Irigoyen
Sector Manager: Philippe Dongier
Team Leader: Michel Rogy
Project ID: P122776
Lending Instrument: Adaptable Program Loan
Sectors: Telecommunications (60%); General
information and communications sector (20%);
General industry and trade sector (20%)
Themes: Infrastructure services for private
sector development (40%); Regional
integration (50%); Regulation and competition
policy (10%)
Environment Assessment Category: B – Partial
Assessment
Project Financing Data:
Proposed terms: [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other:
Loan term: The Fixed Spread Loan (IBRD Flexible) has a disbursement-linked repayment with 6
years of grace period and 18 years of maturity.
Source Total Amount (US$M)
Total Project Cost:
Parallel financing: Borrower
Total Bank Financing: IBRD
109
51
58
Borrower:
Gabonese Republic
Responsible Agency:
Fiber Optic Commission (Commission chargée du suivi des projets de fibre optique au Gabon)
B.P. 2280 Libreville - Gabon
Contact Person: Radwan CHARAFEDDINE
Telephone No.: + 241 06 31 80 80
Email: [email protected]
ix
Estimated Disbursements (Bank FY/US$ m)
FY 2012 2013 2014 2015 2016 2017
Annual 10 10 26 9 2 1
Cumulative 10 20 46 55 57 58
Project Implementation Period:
Start: March 29, 2012
End: June 30, 2016
Expected effectiveness date: April 29, 2012
Expected closing date: December 31, 2016
Does the project depart from the CAS in content or other significant respects? ○ Yes No
If yes, please explain:
Does the project require any exceptions from Bank policies?
Have these been approved/endorsed (as appropriate by Bank management?
Is approval for any policy exception sought from the Board?
○ Yes No
○ Yes ○ No
○ Yes No
If yes, please explain:
Does the project meet the Regional criteria for readiness for implementation? Yes ○ No
If no, please explain:
Project Development Objective:
The development objectives of the proposed project are consistent with the PDO for the CAB
Program: to contribute to increase geographical reach and usage of regional broadband network
services and reduce their prices in the territory of the Gabonese Republic.
x
Project Description:
The main project components will consist of (1) Enabling environment – Technical Assistance
(i) to promote and implement Open Access Regime & PPP for international and for national
connectivity, (ii) for the review, improvement and development of the telecoms and information
laws, (iii) to strengthen capacity of key stakeholders and provide policy and regulatory capacity
building, (iv) to support the increase of broadband access including rural access as well as further
liberalization in Gabon including the regulatory regime for ISPs and reaping the broadband
benefits of digital switchover, (v) to support the establishment of an Internet Exchange Point
(IXP) and to implement a management policy for Internet domain names and (vi) to assist in
defining an e-government strategy and action plan leveraging new connectivity; (2) Connectivity
– on the basis of an open access and PPP structure so as to leverage private sector investment (i)
financing of a share of GoG’s $15 million contribution (consortium fee) for participating in the
ACE submarine cable, (ii) financing of a terrestrial fiber optic link Libreville - Franceville -
Bakumba – Lekoko / Border with Congo to interconnect with the Congolese link Dolisie –
Mbinda (already financed under CAB3 CG) and additional links within the first phase of roll out
of a national backbone and (iii) the setup of an Internet Exchange Point (IXP) and of an
interconnection point to access the national backbone capacity; (3) Project management
(including environmental and social safeguards).
Safeguard policies triggered?
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Forests (OP/BP 4.36)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Indigenous Peoples (OP/BP 4.10)
Involuntary Resettlement (OP/BP 4.12)
Safety of Dams (OP/BP 4.37)
Projects on International Waters (OP/BP 7.50)
Projects in Disputed Areas (OP/BP 7.60)
Yes ○ No
Yes ○ No
○ Yes No
○ Yes No
Yes ○ No
Yes ○ No
Yes ○ No
○ Yes No
○ Yes No
○ Yes No
Conditions and Legal Covenants:
Loan
Agreement
Reference
Description of Condition/Covenant Date Due
Section 5.01
(a) The Fiber Optic Commission has been established and has been made
operational, in form and substance satisfactory to the Bank.
Effectiveness
Section 5.01
(b) The Gabonese Republic shall have adopted the Project Implementation
Manual in form and substance satisfactory to the Bank.
Effectiveness
xi
Legal
covenant Schedule 2,
Section I.A.1
(a)
The Gabonese Republic shall maintain throughout Project
implementation the Fiber Optic Commission under terms of reference
satisfactory to the Bank vested with responsibility for overall technical
and operative guidance, direction and coordination during project
implementation as well as fiduciary and governance oversight.
Legal
covenant Schedule 2,
Section I.A.2
(a)
The Gabonese Republic shall ensure that the CN-TIPPEE, entity
established under Decree No. 000007/PRIMPPD, dated January 4,
2006, and which is the CAB4 GA Project Implementation Unit, will
keep its key management, technical and financial positions staffed for
the entire duration of the Project to carry out its responsibilities under
the Project and for this purpose deposit through the MECIT into the
CN-TIPPEE account in a manner satisfactory to the Bank: (A) not later
than June 30, 2012, an amount of not less than XAF 235,694,379; (B)
not later than May 31, 2013, an amount of not less than XAF 302,
392,773; (C) not later than May 31, 2014, an amount of not less than
XAF 302,392,773; and (D) not later than May 31, 2015, an amount of
not less than XAF 168,353,128.
Legal
covenant Schedule 2,
Section I.B
To facilitate the carrying out of component 2.1 of the Project, the
Gabonese Republic shall take all action required: (i) to ensure the
proceeds of the Loan allocated from time to time to finance the
Consortium Fee are transferred to the ACE Subsidiary in an efficient
and timely manner; and (ii) to have in place a suitable legal framework
to ensure the Loan is used for the intended purposes. To that end, the
Gabonese Republic shall conclude the ACE Agreement with the ACE
Subsidiary whereby the Gabonese Republic shall transfer the said
proceeds of the Loan to the ACE Subsidiary, on a non-reimbursable
basis, in consideration of the undertaking by the ACE Subsidiary that
such amount shall be transferred by the ACE Subsidiary to the ACE
Consortium for the purposes of payment of the membership and
participation of the ACE Subsidiary on behalf of the Gabonese
Republic in the ACE Consortium.
Legal
covenant Schedule 2,
Section I.C
The Gabonese Republic shall, not later than December 31, 2012, cause
the ACE Subsidiary to execute a wholesale agreement (―ACE
Wholesale Contract‖), in form satisfactory to the Bank and in
accordance with the PPP Guidelines, with a suitable operator and which
shall include subrogation rights for the Gabonese Republic against the
operator party to the ACE Wholesale Contract upon the failure of the
operator to perform any of its obligations under the ACE Wholesale
Contract.
Legal
covenant Schedule 2,
Section I.D
To facilitate the carrying out of components 2.2 and 2.3 of the Project,
the Gabonese Republic shall take all action required: (i) to ensure the
proceeds of the Loan allocated from time to time to finance said
components of the Project are transferred to the SPV in an efficient and
timely manner; and (ii) to have in place a suitable legal framework to
ensure the Loan is used for the intended purposes. To that end, the
Gabonese Republic shall conclude a contractual arrangement
(―Backbone Agreement‖) with the SPV whereby the Gabonese
Republic shall transfer the said proceeds of the Loan to the SPV, on a
non-reimbursable basis, for the purposes of carrying out components
2.2 and 2.3 of the Project.
xii
Legal
covenant Schedule 2,
Section I.F.1
The Gabonese Republic shall cause the ACE Subsidiary to take all
action necessary on its behalf: (a) to carry out the ARAP with due diligence and efficiency and at
all times provide the funds necessary there for; (ii) to
adequately monitor and evaluate the carrying out of the
activities provided in the ARAP in the carrying out of the
infrastructure partially financed through the Consortium Fee;
and (iii) to maintain the Gabonese Republic and the Bank
suitably informed of the progress in the implementation of the
ARAP; and (b) to carry out the ACE ESIA and the ACE ESMP with due
diligence and efficiency; (ii) to ensure that the relevant
mitigation and monitoring provisions of the ACE ESIA and
the ACE ESMP are appropriately included in the works, goods
and services contracts to be concluded for the infrastructure
partially financed through the Consortium Fee and that they
are implemented in the carrying out of said infrastructure; and
(iii) to maintain the Gabonese Republic and the Bank suitably
informed of the progress in the implementation of the ACE
ESIA and the ACE ESMP.
Legal
covenant Schedule 2,
Section I.F.2
The Gabonese Republic shall cause the SPV to take all action necessary
on its behalf:
(a) to comply with the ESMF and to carry out the ESIA and the
ESMP, as the case may be, with due diligence and efficiency;
(ii) to ensure that the relevant mitigation and monitoring
provisions of the ESIA and the ESMP, as the case may be, are
appropriately included in the works, goods and services
contracts to be concluded under components 2.2 and 2.3 of the
Project and that they are implemented in the carrying out of
said components 2.2 and 2.3; and (iii) to maintain the Gabonese
Republic and the Bank suitably informed of the progress in the
implementation of the ESIA and the ESMP, as the case may be;
and (b) to comply with the RPF and the IPPF and to carry out the RAP
and the IPP, as the case may be, with due diligence and
efficiency and at all times provide the funds necessary
therefore; (ii) to adequately monitor and evaluate the carrying
out of the activities provided in the RAP and in the IPP, as the
case may be, in the carrying out of components 2.2 and 2.3 of
the Project; and (iii) to maintain the Gabonese Republic and the
Bank suitably informed of the progress in the implementation
of the RAP and the IPP, as the case may be.
xiii
Legal
covenant Schedule 2,
Section II. B.
The Gabonese Republic shall:
(a) 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;
(b) prepare, under terms of reference satisfactory to the Bank, and
furnish to the Bank, on or about August 31, 2014, a mid-term
review 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
(c) review with the Bank, on or about October 31, 2014, or such
later date as the Bank shall request, the report prepared for the
mid-term review and, thereafter, take all measures required to
ensure the efficient completion of the Project and the
achievement of the objectives thereof, based on the conclusions
and recommendations of the said report and the Bank’s views
on the matter.
Ongoing
August 31,
2014
October 31,
2014
Disbursement
condition -
Schedule 2,
Section IV.
B.(a)
No withdrawal shall be made from the Loan Account (other than to
repay the Preparation Advance) until the Bank has received payment in
full of the Front-end Fee
Disbursement
condition -
Schedule 2,
Section IV.
B.(b)
No withdrawal shall be made for payments made prior to the date of
this Agreement, except that withdrawals up to an aggregate amount not
to exceed $4,400,000 may be made for payments made prior to this date
but on or after August 30, 2011, for Eligible Expenditures under
Component 2.1
xiv
Disbursement
condition -
Schedule 2,
Section IV.
B.(c)
No withdrawal under Component 2.1 (international connectivity) of the
project to finance a share of the GoG’s $15 million contribution
(consortium fee) for participating in the ACE submarine cable, until
and unless: (a) (A) the ACE Subsidiary has been duly created pursuant to PPP
Guidelines, registered and made operational in the Borrower’s
territory, including through the appointment of its managers
and the adoption of the shareholders’ agreement and by-laws,
all in form and substance satisfactory to the Bank; and (B) there
shall be furnished to the Bank an opinion satisfactory to the
Bank of counsel acceptable to the Bank showing that the ACE
Subsidiary has been duly created, registered and made
operational in the Borrower’s territory and is legally authorized
to operate in accordance with the Borrower’s laws;
(b) (A) the ACE Agreement, in form and substance satisfactory to
the Bank, has been entered into between the Borrower and the
ACE Subsidiary; and (B) there shall be furnished to the Bank
an opinion satisfactory to the Bank of counsel acceptable to the
Bank showing that the ACE Agreement has been duly
authorized or ratified on behalf of the Borrower and the ACE
Subsidiary, and executed and delivered on their behalf, and is
legally binding upon the Borrower the ACE Subsidiary in
accordance with its terms; and
(c) upon its concurrence, the ACE Consortium has transferred to
the ACE Subsidiary all the rights and obligations of the
Borrower in the Construction and Maintenance Agreement and
has fully substituted the Borrower with the ACE Subsidiary as
the member of the ACE Consortium.
xv
Disbursement
condition -
Schedule 2,
Section IV.
B.(d)
No withdrawal under Components 2.2 and 2.3 of the project to
finance the National Backbone, until and unless: (a) (A) the SPV has been duly created pursuant to PPP Guidelines,
registered and made operational in the Borrower’s territory,
including through the appointment of its managers and the
adoption of the shareholders’ agreement and by-laws, all in
form and substance satisfactory to the Bank; and (B) there shall
be furnished to the Bank an opinion satisfactory to the Bank of
counsel acceptable to the Bank showing that the SPV has been
duly created, registered and made operational in the Borrower’s
territory and is legally authorized to operate in accordance with
the Borrower’s laws;
(b) (A) the Backbone Agreement, in form and substance
satisfactory to the Bank, have been entered into between the
Borrower and the SPV; and (B) there shall be furnished to the
Bank an opinion satisfactory to the Bank of counsel acceptable
to the Bank showing that the Backbone Agreement has been
duly authorized or ratified on behalf of the Borrower and the
SPV, and executed and delivered on its behalf, and is legally
binding upon the Borrower and the SPV in accordance with its
terms; (c) the SPV Wholesale Agreement, in form satisfactory to the
Bank and pursuant to the PPP Guidelines, has been entered into
between the SPV and an operator acceptable to the Bank and
which shall include subrogation rights for the Borrower against
the operator party to the SPV Wholesale Contract upon the
failure of the operator to perform any of its obligations under
the SPV Wholesale Contract; and (d) the Borrower: (i) shall have adopted the ESIA, ESMP, RAP
and/or the IPP, as the case may be, and the same documents
have been consulted upon and disclosed as approved by the
Bank; and (ii) shall have verified, through its own staff, outside
experts, or existing environmental/social institutions, that the
activities under components 2.2 and 2.3 of the Project meet the
environmental and social requirements of appropriate national
and local authorities and that they are consistent with the
Bank’s applicable environmental and social assessment and
safeguard policies and comply with the environmental and
social review procedures set forth in the ESMF, RPF and IPPF,
as the case may be, and the Project Implementation Manual.
1
GABONESE REPUBLIC
GABON PROJECT
FOURTH PHASE OF THE CENTRAL AFRICAN BACKBONE PROGRAM (APL4)
I. Strategic Context
A. Country Context
1. Gabon is a resource-rich country, well endowed with arable land, forest, and
mineral resources. It has extraordinary biodiversity as well as rich deposits of magnesium and
iron ore. It is the fifth largest oil producer in Sub-Saharan Africa and the second exporter of
manganese. With a GNI per capita estimated at US$7760 in 2010, it is one of Africa’s few
middle-income countries. 80 percent of its population lives in urban areas predominantly in the
capital, Libreville, in Port-Gentil, the economic capital and in Franceville, the mining region.
The Gabonese population is young, with 50 percent under 19 years of age.
2. Gabon’s human development outcomes compare favorably with Sub-Saharan
Africa but fall short of countries with similar levels of per capita income. Gabon is ranked
93 out of 169 countries in the 2010 UNDP Human Development Index. Gabon is unlikely to
meet a number of Millennium Development Goals (MDGs) by 2015. The third national MDG
progress report, published in 2010, concluded that MDG targets relating to poverty reduction,
infant and maternal mortality and the prevalence of HIV-AIDS are unlikely to be achieved.
Gabon's constitution recognizes gender equality and the Government has ratified the Convention
on the Elimination of All Forms of Discrimination against Women (CEDAW). However,
according to the United Nations Population Fund several discrepancies in the implementation of
the convention are observed. Several discriminatory provisions exist in the civil and penal codes
that pertain to the minimum age of marriage, divorce, custody of children, equal inheritance
rights of widows and recognition of polygamy. Gabon also lacks specific legislation to eliminate
violence against women, particularly domestic violence. In 2009, the Government launched its
national strategy for Gender Equity (SNEEG), following extensive consultations and research
that was supported by UNDP and UNFPA.
3. Gabon’s macroeconomic performance has improved over recent years thanks to
higher oil prices, a lower than expected decline in oil production and the expansionary
fiscal policy implemented by the new Government. Real GDP growth increased at a yearly
average rate of 3 percent from 2005 to 2011. The non-oil GDP growth rate grew particularly fast
from 2.3 percent in 2004 to 6.1 percent in 2007, reflecting the increased investment in rubber
production, forestry and mining sectors as well as the expansion in agri-business and
telecommunications sectors. In 2008-2009, economic activity was severely impacted by the
global economic crisis and GDP growth was negative; however, in 2010 the economy recovered
rapidly and GDP growth reached 5.7 percent. According to the latest Debt Sustainable Analysis
carried by the IMF in 2010, Gabon’s external debt remains below the critical range of 40 percent
of GDP. The debt-to-GDP ratio was radically reduced in 2010 to 15.7 percent (from 82 percent
in 2002) following the authorities’ decision to direct additional revenues from the rise in
petroleum prices to reduce external debt levels. Gabon plays a leading economic role in Central
2
Africa. Gabon’s membership in CEMAC (the Central African Economic and Monetary Union),
has strengthened economic management by creating a regional framework for macroeconomic
surveillance and an institutional forum for policy dialogue.
4. While medium-term economic prospects are broadly favorable, efforts to diversify
the economy have not yet succeeded in reducing Gabon’s dependence on oil. Although the
agricultural sector has grown significantly in recent years, a large proportion of the country’s
food is imported. Manufacturing is limited, reflecting the small economy, high labor costs and
weak entrepreneurial tradition. The poorly diversified economy, the skills mismatch and
weakness of policies that promote job creation are important factors contributing to Gabon’s
high unemployment rate. Strong economic growth recorded over the last decade has not been
able to absorb the estimated 10,000-15,000 people that enter the labor market each year and
unemployment is rising. The National Office of Employment (ONE) estimates that the
unemployment rate of young people (less than 30 years) is 30 percent and the overall
unemployment rate 16 percent.
5. Poor governance and weak institutional capacity continue to present considerable
challenges for Gabon’s development. Gabon has embarked upon a series of major reforms and
initiatives including adopting a new organic budget law, purging ghost workers in the civil
service, public procurement reform is underway, with new laws drafted and in the process of
being finalized, and a recently instituted audit of the oil companies by an independent auditor is
underway to ensure compliance and to assess how beneficial their contributions are to the
country. Additionally, the Gabonese Government has recently paid the World Bank Group for
Advice and Technical Assistance (a Reimbursable Technical Service Agreement, RTA) related
to public financial management, and debt management, areas that encounter significant
governance issues. Nevertheless, despite the fact that the Government has been active in
promoting transparency in the public sector, particularly in the oil sector, indices relating to
perception of corruption remain high. While improved from 2010, (110 out of 178 countries) the
country is still ranked 100th out of 182 in the Transparency International 2011 Global Corruption
Report. Furthermore the Mo Ibrahim Governance Index shows that in 2011, while ranking
highest in the Central Africa region, Gabon ranked 27th out of the 53 African countries included
in the classification, with no change in its 2010 ranking in relation to its corruption and
accountability indicators.
B. Sectoral and Institutional Context
6. Gabon has shown so far a strong commitment to opening the telecommunications
market to competition and the telecommunications market at the local level is dynamic and
competitive. The telecom sector in Gabon has been liberalized and the incumbent operator
Gabon Telecom was privatized in February 2007 (with Maroc Telecom taking a 51 percent
majority stake), and the company’s monopoly on the provision of international long-distance,
domestic long-distance and local fixed telephony is ending in February 2012. As in the sub-
region, the fixed network shows a very low level of development, with merely 30,000 fixed
subscribers as of December 2010 but the cellular sector is dynamic and competitive, including
four mobile operators: Airtel Gabon, Libertis, Moov Gabon and USAN Gabon (Azur). As of
3
December 2010, the mobile penetration rate is 145%1. On-net calls are priced at 120 FCFA/min
VAT included (24 US cent/min).
7. By contrast, access to international connectivity is at a high price, impeding a rapid
development of Gabon’s Broadband Internet market, and is beyond the reach of the
majority of the population. Since 2002, the country has access to international bandwidth via
the Libreville SAT3-WASC submarine cable landing station, but through its monopoly Gabon
Telecom is rationing access to the bandwidth on this international fiber optic and keeping
bandwidth prices close to satellite prices – the next alternative for service providers. Some
attempts at regulatory intervention have been unsuccessful2. As a consequence, the fixed
broadband market is underdeveloped with a penetration rate of fixed broadband customers of
merely 0.5% as of December 2010, and very high prices even at low speeds3. Prior to the roll out
of mobile broadband services using 3G technology, mobile operators have 209,993 subscribers
as of December 2010 on EDGE-GPRS (penetration of 13.5%), which indicates a real need for
Internet despite existing constraints on international connectivity.
8. In this background, the country has developed a three-year plan called “Digital
Gabon” (Gabon Numérique)4. The Long-Term objective of ―Digital Gabon‖ is to connect all 9
provincial capitals, all regional capitals as well as the borders of the country, thereby increasing
geographical reach and usage of regional broadband network services and reducing their prices
in the Gabonese Republic and paving the way for successful deployment of flagships e-
Government applications. The short term connectivity investment objectives are as follows:
a) New international capacity available in Libreville via the ACE (Africa Coast to Europe)5
submarine cable (estimated ready for service date: August/September 2012);
b) New national capacity via a submarine cable from Libreville to Port Gentil (estimated ready
for service date: February 2012);
c) New national and regional capacity via terrestrial fiber from Libreville to Franceville and
from Franceville to Lekoko to interconnect with the link Dolisie – Mbinda on the other side
of the border in Congo (financed under CAB3 CG);
d) New national capacity via terrestrial fiber from Lekoni to Koulamoutou via Franceville.
1 The source of all figures unless otherwise specified is ARCEP. At this date there were 2,239,785 mobile subscribers (in 2010
the population is estimated 1,545,255 with annual growth rate of 2% according to the CIA World Factbook). This figure does not
provide the ―true‖ penetration as many subscribers own SIM cards with several operators. There is insufficient data on multi-SIM
ratio in Gabon; a survey undertaken in 2008 by ARCEP (then ARTEL) on a sample of 1,500 people in Libreville has shown that
25% of them had two SIM cards in a market with 3 mobile operators. This ratio is probably closer to 35% in 2010. 2 Despite the regulator’s attempts in November and in December 2010 to regulate wholesale prices for capacity on SAT - 3 /
WASC charged by Gabon Telecom, it is nearly impossible for the private sector to openly access Gabon Telecom international
capacity. 3 The majority of customers use 128 Kbits/s accesses at approx. 175 US$ VAT included per month.
4 Under the umbrella of the Presidential ―Emerging Gabon‖ program, President Ali Bongo Ondimba has given a key note speech
on the distinctive role of ICT in its Emerging Gabon plan at the ITU Telecom World held in Geneva in October 2011,
emphasizing that he will ensure that the Mbits will become an intangible right of the Gabonese people. 5 The ACE submarine cable is expected to connect Europe with 12 countries along the West African coast (Mauritania, Senegal,
Gambia, Guinea, Sierra Leone, Liberia, Côte d'Ivoire, Ghana, Nigeria, Equatorial Guinea, Gabon, São Tomé).
4
Figure 1: Short term connectivity objectives of “Digital Gabon”6
Source : ANINF
9. Additional submarine international connectivity will need to be complemented by
regional and national terrestrial links. New international connectivity via ACE will provide
the potential for massively improved access to broadband communications in Gabon, but the full
benefits cannot be achieved without additional investments in regional and national backbone
infrastructure to connect provincial capitals and the borders with other countries within the
CEMAC. Connecting Libreville, Port Gentil and Franceville will address most national current
pending demand for better and cheaper international connectivity. Connecting with Congo will
enable for Congo improved access to international connectivity in terms of prices, available
bandwidth and redundancy as well as better cross-border connection and mutual redundancy
between Gabon and Congo. Building terrestrial fiber from Lekoni to Koulamoutou via
Franceville will enable to connect two main secondary cities (Lekoni, Koulamoutou) and start
the building of a south loop that will back up the Libreville-Franceville link.
10. The CAB4 GA project will address the key issues of limited and non competitive
access to existing submarine cable leading to high Broadband prices and constrained
demand in Gabon, through (i) focused investments in new submarine capacity via ACE
combined with the roll out of a crucial terrestrial national fiber backbone link to Franceville and
the border with Congo (to interconnect with CAB3 CG) in accordance with PPP and Open
Access principles as well as (ii) technical assistance to strengthen the legal, regulatory and
institutional framework and promote a pro-competitive environment to foster investments from
6 See Figure 5 for detailed sources of funds for short term connectivity objectives.
5
operators and Internet Service Providers. Previous experience with fiber cables in East and South
Africa shows that supporting the development of infrastructure whilst improving the policies and
regulatory framework has a secondary impact on the market through a rapid increase in demand
when price of bandwidth decrease. Access to new submarine capacity on an open access basis
via ACE and to the newly rolled-out terrestrial national fiber backbone is expected to directly
feed into lower retail prices and higher bandwidth available in Gabon. Significant increase in
penetration shall be set in motion both for fixed broadband, with already active private ISPs
(such as Internet Gabon and Solsi) well positioned to boost Internet usage in the business market,
and for mobile broadband, with 3G licenses7
to be awarded end of 2011/Begin 2012 to address
the residential market. Detailed demand study confirms robust pending demand8.
11. GoG has expressed strong interest in joining the Central African Backbone
Program (CAB) to finance some of the short term objectives of “Digital Gabon” and is
committed to the CAB program key founding principles. The CAB Program is a regional
instrument aimed at catalyzing private sector investment to improve connectivity in Central
Africa9, and is designed to provide broadband connectivity in Central Africa to all capital cities,
main secondary cities and establish redundancy. The CAB program is structured as both a
horizontal and vertical Adaptable Program Loan (APL)10
. By the end of the CAB Program, all
capitals and major cities in Central Africa should be linked to the global Information and
Communications network through competitively priced high-bandwidth connectivity11
. So far
CAB projects have been approved in Central African Republic (CAR), Cameroon and Chad
(APL1), São Tomé and Príncipe (STP) (APL2), and Republic of Congo (APL3). The GoG
expressed interest in joining the CAB Program in November 2010 for financing a share of its
ACE consortium fee, and committed to the CAB program key founding principles of leveraging
private sector investment, promoting open access and developing wholesale markets12
. A Project
Preparation Advance (PPA) agreement of $3million was signed in May 9, 2011. In October 20,
2011 GoG has requested that its participation in the program be extended to also cover the
crucial terrestrial links to connect the ACE landing station to key regional and national points
restating its clear commitment to PPP and Open Access principles also in these additional links.
Hence, Gabon is fully eligible to participate in the CAB Program and the Gabon project will
constitute the fourth horizontal APL under CAB (CAB4 GA).
12. Telecommunications falls under the mandate of the Ministry of Communication,
Post and Digital Economy (MCPEN), and National Agency for Digital Infrastructure and
Frequencies (ANINF) is leading the connectivity agenda of “Digital Gabon”. The line
7 ARCEP has announced early October 2011 that a first 3G mobile license will be awarded to Airtel Gabon (formerly Zain).
Other operators in Gabon are also keen to deploy third-generation services ahead of the January-February 2012 African Nations
football tournament co-hosted by Gabon. 8 See Annex 7 : Economic and Financial Analysis
9 Eligible countries are Cameroon, CAR, Chad, DRC, Congo, Gabon, Niger, Sudan, Equatorial Guinea, STP.
10 Following APLs have already been discussed and approved by the Board: APL1-A (vertical) on September 24, 2009, APL1-B
(vertical) on June 30, 2011, APL2 (horizontal) on January 12, 2011 and APL3 (horizontal) on May 25, 2011. 11
Similar programs are being developed for other regions: the Regional Communications Infrastructure Program (RCIP) in
Eastern and Southern Africa (which is now in Phase 4), and the West Africa Regional Communications Infrastructure Program
(which is now in Phase 2). 12
In this context ―Open access‖ means permitting access to capacity by new entrants on transparent and non-discriminatory
terms (price and non-price) and ―PPPs‖ means the contractual, governance and financing arrangements between a government
agency and one or more private sector entities participating in the Special Purpose Vehicle Company to be created for the project.
6
Ministry of Communication, Post and Digital Economy (MCPEN) acts as policy maker in the
sector, with overall responsibility for telecoms licensing as well as regulating the broadcasting
sector. Acknowledging fiber optic electronic communications terrestrial and submarine cable as
a ―national asset‖ within basic telecommunications infrastructure, the Ministerial Decision
No.0212/PR of 27 January 2011 has established an auxiliary state body attached to the
Presidency called National Agency for Digital Infrastructure and Frequencies (ANINF)13
to inter
alia (i) build shared national infrastructure, (ii) acquire existing infrastructure and integrate them
in the shared national infrastructure and (iii) set up the carrier's carriers in charge of the shared
national infrastructure. There is also a telecoms regulator, Posts and Electronic Communications
Regulatory Agency (ARCEP), which was created under Law No. 005/2001 with the general aims
of promoting healthy and fair competition, and ensuring public access to communications
services. It has responsibility for governing tariffs, enforcing legislative decisions, issuing
tenders and licenses and formulating policy to develop and modernize the industry. GoG decided
to use some of the resources of the Oil Investment Fund PIH (Provision pour Investissement en
Hydrocarbures), financed by the TOTAL Group, to fund a share of the ACE consortium fee as
well as new national capacity via a submarine cable from Libreville to Port Gentil14.
13. Given the relatively small population in Gabon (1.5 million inhabitants), GoG is
willing to absorb the investment risk associated with significant investments in broadband
connectivity to create effective competition for international connectivity, reduce the digital
gap and link the country to its borders whilst entrusting an independent experienced
private operator with the operation and maintenance of these investments that could
ultimately evolve towards shared ownership. GoG’s objective is to provide as soon as possible
a new growth opportunity to its dynamic and competitive ICT sector in line with its focus on
growth and diversification15
. The main rationale for the Bank’s involvement is to provide
financing in the early stages of the Gabonese connectivity project, so as to safeguard open access
and PPP principles in this infrastructure and support GoG’s commitment to facility based-
competition for international connectivity and accelerating broadband development: i.e. to
safeguard that the new submarine cable capacity as well as the national backbone that will
distribute it throughout the country and to its borders will be provided according to open access
principles and will leverage interest expressed so far by the private sector (operators and Internet
Service Providers) to participate in the project. This CAB4 GA project will in addition contribute
to achieving the higher level objectives listed below.
13
http://aninf.ga/aninf/test/spip.php?article1. 14
The projects to be financed under the PIH are jointly decided by GoG and the TOTAL Group (with GoG owning 25% of the
Gabonese subsidiary of the TOTAL Group). According to the GoG’s new economic vision called -―Emerging Gabon‖ (Gabon
Emergent), the PIH shall finance major infrastructure projects. Other such projects are e.g. the sanitation program and the
upgrade of the airport in Port Gentil. 15
In 2008, the World Bank conducted an econometric analysis across 120 countries to investigate the impact of higher
penetration of broadband and other ICTs on economic growth (the average growth rate of per capita GDP) between 1980 and
2006. For developing countries, every 10 percentage point increase in the penetration of broadband services was associated with
an increase in per capita GDP of 1.38 percentage points; Internet and mobile phone penetration were associated with a 1.12 and
0.81 percentage point increase, respectively. Although causality in the relationship between broadband and growth is hard to
prove with the data available, analysis suggests high likelihood of causality. See: Annex 7: Economic and Financial Analysis.
7
C. Higher Level Objectives to which the Project Contributes
14. CAB4 GA is fully consistent with GoG’s new economic vision called -“Emerging
Gabon” (Gabon Emergent) and the Millennium Development Goals. ―Emerging Gabon‖
aims at modernizing the country and turning it into an emerging economy by 2025 and consists
of four pillars including improving the business environment and private sector development
(pillar 2) and strengthening infrastructure development and regional planning (pillar 4) by
ensuring that basic infrastructure, notably energy, telecommunications and transportation are
adequate for all. More specifically, CAB4 GA is fully consistent with the three-year plan
―Digital Gabon‖16
mentioned above that will increase geographical reach and usage of regional
broadband network services and reduce their prices in the Gabonese Republic, paving the way
for successful deployment of flagships e-Government applications. The project will also
contribute towards realization of the Millennium Development Goals (Targets 1 and 2) by
supporting economic growth; and Target 18, by making available the benefits of new
technologies, especially information and communications17.
15. CAB4 GA is also fully aligned with the World Bank Country Partnership Strategy
(CPS) under preparation, the Progress Report on the Regional Integration Assistance
Strategy (RIAS) “Partnering for Africa’s Regional Integration” (March 2011) as well as
the Africa Region Strategy “Africa’s Future and the World Bank’s Support to It” (March
2011). The ICT strategic theme will be fully reflected within the new Gabon Country Partnership
Strategy (CPS) FY12-15 under preparation, with CPS outcome 3 aiming at increased
geographical reach and usage of regional broadband network services and reduction of their
prices. CAB4 GA largely represents the Bank’s support to Gabon’s regional integration agenda
within the CPS. The RIAS update supports ―completing the connection of countries to submarine
cables and extending terrestrial fiber optic backbone networks into landlocked countries, on a
strong PPP basis – all key components of CAB4. The Bank’s Regional Strategy which rests on
two pillars (I) competitiveness and employment and (II) vulnerability and resilience, and a
foundation of governance and public sector capacity. ICT has been identified as a major driver
for growth in competitiveness and employment (pillar I) and has an immense potential to provide
innovative ways to enable citizen-centered governance (pillar II). As per the Bank’s Regional
Strategy, the ICT component of the CPS intends to set in motion a process of transformative
change by:
Leveraging partnerships. As in any intervention in the context of a PIH funding, the
TOTAL Group provided expertise and support in project management for the ACE
component to the Fiber Optic Commission established by GoG. The French Donor AFD
is discussing an operation to finance additional national backbone links - under
subsequent phases of roll out of a national backbone - that will ―branch out‖ from the link
financed under CAB4 GA, in particular new national capacity via terrestrial fiber to the
16
―Digital Gabon‖ is structured around 6 strategic objectives as follows: (i) establish an coherent and stable institutional
framework; (ii) set up the legal framework for the information society; (iii) build and operate digital infrastructure with the
objective to foster infrastructure sharing; (iv) standardize and digitalize major State unified registries; (v) implement e-
government; and (vi) support industrial and social sectors in their migration towards information society and knowledge
economy. 17
Target 1. Halve, between 1990 and 2015, the proportion of people whose income is less than $1 a day.
Target 2. Halve, between 1990 and 2015, the proportion of people who suffer from hunger
Target 18. In cooperation with the private sector, make available the benefits of new technologies, especially information and
communications technologies.
8
border with Cameroun, and is in agreement with the Bank to promote PPPs and open and
competitive access principles18
.
Knowledge. The CPS foresees analytical work post investment with AAA ICT Policy
Notes as well as an ICT Component in a Reimbursable Technical Agreement.
Financing connectivity under CAB4 GA and e-Government flagship applications as
envisaged in the proposed CPS.
16. Significant regional spillover benefits are expected under CAB4 GA and the wider
CAB program.
a) CAB4 GA supports the objective of CEMAC and ECCAS (Economic Community of
Central African States) of creating an integrated and competitive economic space in
Central Africa. In particular it contributes to the implementation of the third pillar of the
2010-2015 CEMAC Regional Economic Program related to physical interconnectivity of
its member countries by enhancing regional connectivity through (i) access to
international connectivity with the ACE submarine cable infrastructure, (ii) increased
cross-border communications traffic flows, particularly with the Republic of Congo (link
Dolisie – Mbinda financed under CAB3 CG which will be dedicated to the transportation
of international traffic) and (iii) connection of some main secondary cities (Franceville,
Koulamoutou, Lekoni) in Gabon to the regional infrastructure. CAB4 GA will also allow
for the further deployment of the national backbone within Gabon and to Gabon’s other
borders: the French Donor AFD is discussing with GoG a possible operation branching
out from the link financed by the Bank and heading North towards Cameroon via main
secondary city Oyem. This enhanced regional connectivity will contribute to unleashing
Gabon’s economic potential.
b) The policies infrastructure implemented under CAB4 and earlier phases of the CAB
program will strongly benefit neighboring Congo, landlocked countries Chad and
CAR as well as DRC which is not yet served by a submarine cable. The construction
of a backbone connection to Congo will create loops (redundancy) in the regional
communications network (see figure 2 below), allowing for alternative access routes to
submarine cables for both Gabon and Congo should there be any interruption of their
direct access to the ACE cable and increasing the overall integrity of the regional
communications network. The connection of Gabon to Congo (APL4), connections from
Congo to CAR and DRC (APL3) and further connection from CAR to Chad (APL1) will
offer alternative access routes for Chad, CAR and DRC. The combination of redundant
physical connections and open access policies should increase competition for transit
traffic, thereby lowering prices for all countries in the regional network.
c) The regional nature of the Gabon project will also enhance the harmonization of
sector regulation that governs the ICT sector across the countries of the region,
particularly under the umbrella of the CEMAC. Technical Assistance under
Component 1 of the project will assist GoG in the review, improvement and development
of (i) the telecoms and (ii) the information laws (cyber-security, privacy, etc) including
implementation of the CEMAC regional telecoms directives. This will lead to lower
18
To mitigate the risks involved in infrastructure development and management, the Bank has engaged with Development
Partners to foster Open and Competitive Access to communications infrastructure, actively engaging private sector through PPPs,
and strengthening policy and regulatory frameworks / institutional capacity to facilitate enabling environment.
9
prices for telephone services and better access to the broadband Internet, which will
significantly improve foreign and local private investment environment in the region,
decrease the cost of doing business, increase the prospects for job creation and wealth
generation and enable countries to reap the benefits of ICT as a platform to deliver
services to their citizens.
d) By providing a variation of PPP/Open access principles which balances strong
government preference to keep infrastructure in public hands (at least in the initial phase),
and Bank requirements for open access to boost sector development and strong private
sector involvement to ensure effective operation and maintenance of the assets, CAB4
GA can also provide a learning experience and possible consolidation of existing PPP
operations in Chad, RCA, STP and Congo under the CAB Program (see Annex 2 for
detailed information). It may also provide incentives for other countries which are
showing reluctance to implement such a PPP structure to join subsequent APLs of CAB.
Figure 2: Reinforcing the integrity of the regional communications networks
Source : Y. ROUHAUD
19
19
Based on the report and financial model developed by Mr. Yves Rouhaud, Technical and Economical consultant advising GoG
(see : Projet CAB4-CITGB, Plan d’entreprise du PPP pour l’accès au câble sous-marin ACE, Rapport N° 2 : Phase I du
Backbone National, Date : 24 décembre 2011).
10
II. Project Development Objectives
A. PDO
17. The development objectives of the proposed project are the same as the PDO for the
Central African Backbone (CAB) Program: to contribute to increase geographical reach and
usage of regional broadband network services and reduce their prices in the territory of the
Gabonese Republic.
B. Beneficiaries
18. Direct beneficiaries of the project include people who are connected to the
communications network in the Gabonese Republic (including telecommunication services and
internet users, schools, hospitals, banks, corporations, government and public administrations), to
be measured as the total population because the total teledensity is much higher than 100% (see
Figure 3 below). Indirect beneficiaries potentially include all of the country’s population, since
increased communications capabilities at affordable rates for some of the population may
eventually have externalities for all.
C. PDO Level Results Indicators
19. Achievement of the development objectives of CAB4 GA will be assessed through
the key monitoring and evaluation indicators summarized in the Figure below. These
indicators were retained in all APLs of regional connectivity projects such as CAB or WARCIP
because they enable to assess either the level of communications services within targeted
countries or the competitiveness of countries with regards to cost of capacity regionally.
20. Market trends observed recently in East and Southern Africa, where new
competitive submarine cables have now been in place for over a year and where data has
recently been made public, confirm that these key monitoring and evaluation indicators are
appropriate to capture major consequences of the combination of component 1 - Enabling
environment and of component 2 – Connectivity of the CAB4 GA project, without large risks
that exogenous factors will intervene to derail them. When investments in fiber infrastructure to
access international connectivity are made in accordance with PPP and open access principles,
bandwidth prices fall substantially and consumption/demand increases dramatically in the
targeted country; this will adequately address the key issues of ―limited competition‖ and ―high
prices‖ in the Gabonese Broadband market identified in the Sectoral and Institutional Context
section above.
11
Figure 3: Key monitoring and evaluation indicators for CAB4 GA Project Development
Objective (PDO) Core
Sector
Indicators*
Outcome Indicators for CAB4 GA Base line
[2010]
By the closing date
[YR 5 (2016)]
Contribute to increase
geographical reach and
usage of regional
broadband network
services and reduce prices
in the territory of the
Gabonese Republic
Volume of international traffic
International internet bandwidth
(Bits per second per person) 4,620 14,712
Volume of national traffic using 2
proxies:
Y Access to internet services
(number of subscribers per 100
people)
14 28
Y Access to telephone services
(fixed mainlines plus cellular
phones per 100 people)
14720 12521
Average price of international
communications using the proxy:
Average monthly price of
wholesale international E1
capacity link from capital city to
Europe (US$/ month/2Mbps)
10,500 US$ 500 US$
Project beneficiaries:
Y Number of project direct
beneficiaries
1,545,25522
(51%)
1,740,208
(51%)
(percentage of female)
* Results Platform, CT: Telecommunications, Core Sector Indicators and Definitions, May 25, 2010
21. Intermediate Results Indicators will assist in measuring more specifically the results of
component 1 - Enabling environment, monitoring sector competitiveness and efficiency of
regulation, and of component 2 - Connectivity (see Annex 1), monitoring competitiveness / fair
access to infrastructure, increase in potential intra-regional communications23
and level of access
to services countrywide24
.
20
The percentage of multiple SIM holders is at least 25% (estimate 2008, with 3 operators in the market) and is probably closer
to 35% in 2010, which corresponds to a real penetration of 109%: the market for telephone services in Gabon is reaching
saturation. 21
Gabonese operators have started to ―clean up‖ their database to exclude non-active customers. Furthermore, it is scheduled that
all SIM card owners will be registered by the Gabonese mobile operators before End 2012. Both operations (clean up of non-
active customers, identification of SIM card holders) are generally associated with a sharp decrease in the number of mobile
cellular subscriptions. 22
Assuming total population of approx. 1,545,255 and an annual growth rate of 2% (source: CIA World Factbook). The real
penetration number being higher than 100%, it can be assumed that the whole Gabonese population will benefit from the project. 23
The indicator ―Length of fiber optic network built‖ will be used as a proxy for the volume of cross-border communications
traffic flows: this indicator measures the cumulative number of kilometers of fiber-optic network built under the project to reach
the borders of the country. Under Capacity Building activities for the Regulatory Authority ARCEP under Component 1,
assistance in improving the Market Observatory will address this issue of lacking data on traffic flows on a country by country
basis. A specific indicator to capture intra-regional traffic flows is expected to be introduced after mid-term review. 24
Intermediate Results Indicators have been identified taking into account lessons learned from CAB2 STP (where the
connectivity component focuses on financing participation in the ACE submarine cable) and from CAB3 CG (where the
connectivity component focuses on terrestrial backbone links to the borders of the country).
12
III. Project Description
A. Project components
22. The project will be executed over a five-year period with a total IBRD financing of
US$58 million and will include a set of activities grouped under three broad components25
.
a) Component 1 - Enabling environment (Estimated Cost US$6.05 million) – This
component will include the following activities, that have been identified taking due
account of the strategic objectives of ―Digital Gabon‖ (Gabon Numérique): (i) Technical
Assistance to promote and implement Open Access Regime & PPP for international and
for national connectivity (e.g. rules of incorporation, reference wholesale / interconnect
offer) through hiring legal and business experts to advise GoG on negotiations with
private sector operators, by financing technical and financial audits of the structures to be
setup and through workshops on Promoting PPP investment in the telecommunications
sector as well as supporting tender design and audit of national backbone, of IXP and of a
Carrier Hotel to access the international and national connectivity; (ii) Technical
Assistance for the review, improvement and development of the telecoms and the
information laws (cyber-security, privacy, etc) ; (iii) Technical Assistance to strengthen
capacity of key stakeholders (i.e. Line Ministry MCPEN, ANINF and the Regulatory
Authority ARCEP) and provide policy and regulatory capacity building (e.g. regulatory
tools, cost models, M&E capacity) ; (iv) TA to design a strategy and action plan to
support the increase of broadband access including rural access as well as further
liberalization in Gabon including the regulatory regime for ISPs and reaping the
broadband benefits of digital switchover; (v) TA to support the establishment of an
Internet Exchange Point (IXP) and to implement a management policy for Internet
domain names; and (vi) TA to assist in scaling up the e-government strategy and action
plan to leverage new connectivity, encompassing a status of actions undertaken so far in
implementing e-government applications, an analysis of progress and delays, and detailed
recommendations to update / revise the Gabonese e-government strategy with an action
plan showing clear priorities, associated timelines and suggestions for indicators tracking
impact on country development and progress towards a knowledge based economy.
b) Component 2 – Connectivity (Estimated Cost US$48.50 million) – This component
will include the following activities, on the basis of an open access and PPP structure so
as to leverage private sector investment: (i) finance a share of GoG’s $15 million
contribution (consortium fee) for participating in the ACE submarine cable; (ii) finance a
terrestrial fiber optic link Libreville - Franceville - Bakumba – Lekoko / Border with
Congo (approx. 800 km) to interconnect with the Congolese link Dolisie – Mbinda
(already financed under CAB3) and additional links such as Lekoni - Franceville –
Koulamoutou (approx. 340 km) within the first phase of roll out of a national backbone
25
To maximize flexibility, client-responsiveness and the specific national situation of each country (in terms of existing
infrastructure or policy environment), the CAB Program includes a customizable set of activities which have been grouped under
four broad components: ―enabling environment‖, ―connectivity‖, ―eGovernment and flagship ICT applications‖ and ―project
management‖.
13
and (iii) finance the setup of an Internet Exchange Point (IXP) and of a Carrier Hotel26
to
access the international and national backbone capacity.
c) Component 3 – Project Management (Estimated Cost US$3.45 million) – This
activity will (i) finance the social and environmental studies required by the ESMF, the
RPF and the IPPF and monitoring and capacity building, (ii) provide support needed to
strengthen the capacity of GoG to implement CAB4 GA, including upgrading an existing
Project Implementation Unit (PIU) (see below), hiring dedicated staff to work on the
project to complement existing project staff (such as technical advisor), covering office
equipment and some operating costs, trainings on Bank’s project cycle and procurement
and FM guidelines of Bank funded projects and (iii) finance audits, monitoring and
evaluation (M&E) including appropriate actions to support efficient data collection, and
communication.
23. Annex 2 provides a detailed breakdown of main proposed project components. While the
CAB Program includes the possibility of eGovernment related components, the Bank and GoG
have decided that this project will focus on connectivity elements, whose effective availability is
a key prerequisite for successful roll-out of eGovernment applications, and finance a study on
scaling up the e-government strategy and action plan to leverage such new connectivity.
Additional financing to this CAB4 GA project may be considered in the future to support rollout
of selected eGovernment and flagship ICT applications should GoG confirm its interest to
engage in such an ICT transformational agenda with the Bank as envisaged in the proposed CPS.
B. Project Financing
Lending Instrument
24. The instrument is an investment Adaptable Program Loan. CAB4 GA is part of the fourth
phase of the Horizontal APL for the Central African Backbone (CAB) Program, discussed and
approved by the Board on September 24, 2009, with whose objectives it is fully consistent.
25. Activities under the proposed project meet the regionality criteria and therefore are
eligible for a US$58 million IBRD funding under the CAB program27
.
Project Financing Table
26. Total project financing requirements split between IBRD and GoG counterpart funding
(on a parallel basis) are estimated as follows:
26 A carrier hotel, also called a collocation center is a secure physical site or building where data communications media
converge and are interconnected. It is common for numerous telecommunications operators and service providers to share the
facilities of a single carrier hotel. Co-location allows multiple customers to locate network, server, and storage gear—and connect
them to a variety of telecommunications and network service providers (ensuring neutrality towards any operator or service
provider) — with a minimum of cost and complexity. A carrier hotel provides collocation, offering various services to customers
ranging from modest-sized racks to dedicated rooms or groups of rooms (offering herewith the appropriate environment to set up
data centers). In developed countries, carrier hotel can be of sizeable magnitude (often containing more than 5000 square meters
(approximately 54,000 square feet). In our case, the carrier hotel will be much smaller. 27
The CMU confirms the availability in FY12 of $58 million IBRD funding.
14
Figure 4: Total Costs and financing sources for the CAB4 GA project
US$ million IBRD GoG Counterpart
funding
(parallel financing)
TOTAL
Component 1 -
Enabling
environment
6.05 0.3028 6.35
Component 2 –
Connectivity
48.50 48.3629
96.86
Component 3 –
Project management (including
environmental and
social safeguards)
3.45 2,2230 5.67
TOTAL 58.00 50.88 108.88
27. Detailed information on costs and financing sources for the short term connectivity
objectives of ―Digital Gabon‖ is provided in Figure below.
28
Financing the route survey for the Phase I of the National backbone. 29
See para below. 30
See Annex 3: Implementation Arrangements (US$ 2.02 million parallel financing of PIU operating costs and US$ 0.20 million
parallel financing of safeguards implementation).
15
Figure 5: Costs and financing sources for the short term connectivity objectives of “Digital Gabon”
Sh
ort
term
ob
jecti
ves
Description of connectivity component
To
tal
Am
ou
nt
(US
$ m
illi
on
)
Pa
id b
y G
oG
wit
h I
BR
D
fun
ds
(US
$
mil
lio
n)
Co
mp
on
en
t 2
–
Co
nn
ecti
vit
y
CA
B4
GA
P
aid
by T
ota
l
Ga
bo
n
thro
ug
h P
IH
(US
$ m
illi
on
)
Pa
rall
el
fin
an
cin
g
Pa
id b
y G
oG
wit
h o
wn
fu
nd
s
(US
$ m
illi
on
)
Pa
rall
el
fin
an
cin
g
Inclu
din
g T
ota
l
Am
ou
nt
to b
e
paid
to
AC
E
(US
$ m
illi
on
)
(a) New international capacity available in
Libreville via the ACE 30.00* 7.64 15.00 7.36 25.00
(b) New national capacity via a submarine
cable from Libreville to Port Gentil 26.00** 26.00
(c)
and
(d)
New national and regional capacity via
terrestrial fiber (approx. 800 km) from
Libreville to Franceville and from
Franceville to Lekoko to interconnect
with the link Dolisie – Mbinda on the
other side of the border in Congo
(financed under CAB3)
including setup of a Carrier Hotel to
access the international and national
backbone capacity and setup of an
Internet Exchange Point (IXP)
and
New national capacity via terrestrial
fiber (approx. 340 km) from Lekoni to
Koulamoutou via Franceville
40.86 40.86
TOTAL 96.86 48.50 41.00 7.36 25.00
Notes:
* In addition to the US$25.00 million consortium fee to ACE, there are associated investments to set up the landing
station and its operating environment.
** CAB4 GA is not dependent on the implementation or functioning of the new national capacity via a submarine
cable from Libreville to Port Gentil, even though the Bank project will benefit from this national link. See: Annex 7:
Economic and Financial Analysis.
*** CAB4 GA is partly dependant on the functioning of CAB3 CG (link Dolisie – Mbinda) and adequate
coordination between technical teams on both sides of the border to provide effective cross border interconnectivity
between Gabon and Congo. See: Annex 7: Economic and Financial Analysis.
28. The Project Preparatory Advance (PPA) of US$3 million approved in March 2011 and
effective since May 12, 2011 provides financing to cover initial membership fee payments to
participate to ACE submarine project as well as other project preparation activities consisting of
technical assistance to design and structure from a technical, commercial, financial and
regulatory perspective the PPP and Open Access principles, environmental and social studies as
well as establishment of the necessary enabling environment for the project implementation
through strengthening of the Project Implementation Unit (PIU). As of February 29, 2012,
US$2.3 million out of the US$ 3 million have been disbursed (76.6% disbursement rate),
including US$2 million consortium fee payment to ACE disbursed in July 2011.
29. Involvement of IFC and MIGA in the operation has been considered. Some private
operators or ISPs in Gabon have approached or may approach IFC and/or MIGA for financing
16
and/or for the provision of political risk insurance. Leveraging the new fiber optic infrastructure,
the SETRAG may also approach IFC for financing IT equipments enabling the deployment of a
technology similar to ERTMS31
to improve monitoring and supervision of trains.
C. Lessons Learned and Reflected in the Project Design
30. The project incorporates lessons learned and builds upon experiences of World
Bank-financed Telecom/ICT projects and programs in the region.
31. Government commitment and ownership of the project. The team recognizes the
importance of client ownership for an efficient implementation of project activities. GoG has
confirmed its strong interest in participating in the CAB program and specifically requested
support from the Bank first for the ACE component and then for Phase I of the National
backbone32
. The project design reflects the intent, interest and priorities of the various
beneficiaries and stakeholders, in particular the different institutions in charge of defining and/or
implementing sector policies and regulations (MCPEN, ANINF, ARCEP).
32. PPP and Open Access Principles. Emerging international best practice (e.g. Kenya,
Tanzania, Rwanda and Uganda) indicates the best management structures for high capacity
broadband backbone networks are on an "open" basis and under PPPs. Integrating the private
sector brings access to private capital, reduced public sector operational risk, faster project
deliveries, project management skills, entrepreneurship and innovation. To keep some flexibility
in the CAB Program33
, the detailed arrangements in terms of ownership and management will be
defined at the country-level given the difference of eligible countries in terms of sector structure,
level of development and access, operational and financial situation of the respective telecom
State Owned Enterprises (SOE). Lessons learned from similar operations under regional
connectivity projects such as CAB, WARCIP or RCIP indicate that PPP and Open Access
discussions often run into obstacles when it comes to the practical details of how to implement
PPP and Open Access principles: CAB4 GA project is financing extensive legal and regulatory
technical assistance under the PPA to discuss and to improve the GoG’s preliminary proposal in
close interaction with the private sector; it has been confirmed that implementing this variation
for PPP/Open access principles would creating a good balance between strong GoG’s preference
to keep ―national‖ assets in public hands and Bank requirements for open access to boost sector
development and for strong private sector involvement to ensure effective operation and
maintenance of the assets (see Section IV for detailed information).
31
The European Rail Traffic Management System (ERTMS) is an initiative backed by the European Union to enhance cross-
border interoperability and signalling procurement by creating a single Europe-wide standard for train control and command
systems. 32
On November 23, 2010 (ref. 2635/MECIT/CAB/JPNB) GoG expressed interest in joining the CAB Program for its
international connectivity and submitted a Project Preparation Advance (PPA) request of US$ 3 million, clearly committing to
PPP and Open Access principles. The PPA agreement has been signed on May 9, 2011 after initial delays. On October 20, 2011
(ref. 2231/MECIT/CAB) GoG expressed interest in joining the CAB Program also for a crucial link of its national backbone from
the ACE landing station to the border with Congo via Franceville. 33
Within the context of the CAB Program, a Public Private Partnership (PPP) can be defined as an agreement between
government and private entities for the purpose of delivering a project or service (building, operating and commercializing
international/regional/national connectivity) by sharing the risks and rewards of the venture. The PPP model helps in bridging
gaps in quality, speed, and efficiency in the provision of services by the public sector. The extent of participation from the private
sector may range from small scale sharing of risk to near complete ownership and management of the project.
17
33. 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.
34. Build on available expertise for project implementation arrangements. Given the
limited availability and short supply of qualified staff for project management, procurement and
financial management, the team is proposing to use an existing Project Implementation Unit
(PIU) already familiar with Bank procedures (―CN-TIPPEE‖) for fiduciary management,
including procurement, financial management, M&E, communications and environmental
support. A technical advisor will be hired and will be responsible for technical inputs, which CN-
TIPPEE does not master, and a Fiber Optic Commission (Commission chargée du suivi des
projets de fibre optique au Gabon) with participation from MCPEN, MECIT, ANINF and
ARCEP will ensure coordination and overall policy and strategic direction, general project
oversight and overall operative guidance and coordination during implementation.
IV. Key Risks
A. Risk Ratings Summary Table
Stakeholder Risk Substantial Implementing Agency Risk
- Capacity Moderate
- Governance Moderate
Project Risk
- Design Substantial
- Social and Environmental Moderate
- Program and Donor Moderate
- Delivery Monitoring and Sustainability Moderate
- Other Moderate
Overall Implementation Risk Substantial
B. Overall Risk Rating Explanation
35. The Overall Implementation Risk is rated Substantial due to the risks linked to weak
implementation capacity despite mitigation measures implemented during project preparation.
The Bank will therefore fund targeted Technical Assistance and capacity building activities
throughout project implementation to all key stakeholders (MCPEN, ARCEP, ANINF) as well as
to the PIU CN-TIPPEE. The strategy for implementation support (see Annex 5) has also been
developed to provide mitigation measures to implementation capacity risk. In addition,
telecommunications. In addition, technical Assistance has been planned within the new
Reimbursable Technical Service Agreement (RTA).
18
36. The main risks of the proposed operation lay in defining the practical details of how
to implement PPP and Open Access principles and have been addressed during project
preparation. Guidelines were agreed with Government of Gabon (GoG) during appraisal to
ensure smooth implementation of this Open Access and PPP structure (see Section VI. B
Appraisal Summary – Technical) and reflected in the Loan Agreement (as disbursement
conditions). The table below summarizes Stakeholder as well as Project Design substantial risks
identified during project preparation and the associated mitigation measures (see Annex 4
Operational Risk Assessment Framework (ORAF)).
19
Figure 6: Main CAB4 GA project-related preparation risks
Risk Description Proposed Mitigation Measures
Stakeholder risks
Despite very strong interest to join ACE and national backbone
projects, the buoyant private sector remains insufficiently
informed about GoG’s proposed approach to implementing PPP
and open access principles to make a financial commitment.
Furthermore there is a concern that GoG may not effectively
handling over operation and maintenance to the private sector
despite commitments formalized in its request for financing.
Despite having representatives of both MCPEN and ANINF on
the ACE project steering committee set up by GoG, there is
insufficient coordination between MCPEN and newly created
ANINF. The sector regulator ARCEP has not been adequately
involved in the ACE project
The sector regulator ARCEP lacks the expertise to guarantee the
implementation of open access principles and sound
competition in the developing broadband market.
In order to obtain effective financial commitment by the
private sector, consultants have been hired in October 2011
under the PPA to assist in showing that GoG’s proposed
approach complies with open access principles and PPP as
well as improving via workshops the interaction with
private sector. In particular business cases enabling to
compute fully cost oriented prices have been presented to
ensure private sector committing to purchasing capacity
and secure payback (see Annex 7). Guidelines on how to
implement open access and PPP principles have been
discussed and agreed with GoG during appraisal and will
be included in a supplemental letter to the loan agreement.
Disbursement conditions have been set to ensure that the
HoldCo and its ACE subsidiary are duly created, registered
and made operational and to ensure that the independent
private wholesale operator is selected in form and
substance satisfactory to the Bank. Finally performance of
private wholesale operator against appropriate KPIs in
monitored as part of project supervision.
A Fiber Optic Commission with high level representatives
of MECIT, MCPEN, ANINF and ARCEP will be set up
and be in charge of overall operative guidance, direction
and coordination during project implementation. The team
will monitor during preparation and implementation how
coordination is performed and advise should the need for
improvements or streamlining arise.
TA will provide ARCEP with a study and specific training
on key tools for broadband regulation.
Design risks
PPP structuring negotiations are in general difficult.
.
PPA will provide extensive support for PPP negotiations,
including capacity building for Gabonese shareholders.
PPP negotiations will be well advanced before Board
because guidelines on how to structure the PPP have been
agreed with GoG (see Annex 2) and because the ACE
cable will have been laid down and required operations and
maintenance arrangements have therefore to be put in
place pursuant to the ACE Construction & Maintenance
Agreement. This support includes a detailed economic
study to confirm robust pending demand and identify any
need for appropriate demand stimulating approaches. It
also includes discussion appropriate rules to ensure that the
private sector is involved in defining the next phases of
national backbone roll-out.
37. Lessons learned from this experience will eventually benefit other Bank funded projects
where interconnection between different connectivity projects located on different sides of
borders has to be established because it involves the set up of a backbone interconnection
between Gabon and Congo. The French Donor AFD is discussing with the GoG a possible
operation to finance links of the national backbone branching out towards the northern borders
20
from the link Libreville – Franceville financed by the Bank : CAB4 GA is not dependent on the
implementation or functioning of the AFD projects, even though the Bank project will benefit
from the AFD projects.
V. Implementation
A. Institutional and Implementation Arrangements
38. The line Ministry MCPEN and the MECIT will set up a Fiber Optic Commission
that will lead the implementation of CAB4 GA.
39. The implementation arrangement agreed with GoG involves therefore two
organizational levels: a Fiber Optic Commission and a Project Implementation Unit. This
arrangement builds upon the existing arrangement established by GoG and TOTAL Group as
any PIH funded project; it has been successfully working during the PPA and it is now proposed
with some membership adjustments for the whole CAB4 GA project. Beside savings on project
management costs, this approach will also enable a faster implementation of CAB4 GA as there
will be no need to set up a new PIU.
The Fiber Optic Commission (Commission chargée du suivi des projets de fibre optique au
Gabon) will be in charge of providing overall technical and operative guidance, direction and
coordination during project implementation will have fiduciary and governance oversight and
will bear overall responsibility for the compliance of safeguard activities to national and
Bank policies. A draft Ministerial Decision of GoG formally establishing the Fiber Optic
Commission is under preparation and will be issued prior to effectiveness of the Loan
Agreement.
o The Steering Committee will include the Minister of MECIT, the Minister of
MCPEN, the Director General of ANINF and the President of ARCEP34
. The
Steering Committee will meet at least once every quarter (or exceptionally if so
required) and will be supported, in all its functions, by a Project Coordination Team.
o The Project Coordination Team will comprise of representatives from MECIT,
MCPEN, ANINF and ARCEP complemented by representatives of the Director
General of Environment (DGE) in charge of social and environmental safeguards
within the MHUEDD and from the railway company SETRAG. It will designate one
of its members as the CAB4 GA focal point to ensure smooth coordination with the
Bank and with the PIU. The CAB4 GA focal point will be the secretary of the
Steering Committee.
The PIU for CAB4 GA will be an already established and experienced PIU called CN-
TIPPEE (Commission Nationale – Travaux d’Intérêt Public pour la Promotion de
l’Entreprenariat et de l’Emploi / National Commission – Labor Intensive Small-Scale Public
Infrastructure Works), which was set up in 2006 by GoG and which is already familiar with
34
The GoG may consider appropriate to complement the Fiber Optic Commission with representative of other interested
institutions or authorities of the Gabonese Republic, such as the National Agency for Major Works ANGT.
21
Bank procedures35
. The CN-TIPPEE, directed by a Permanent Secretary, includes four units
respectively responsible for technical implementation, administration and finance,
monitoring and evaluation as well as information and communication. Reporting to the Fiber
Optic Commission for overall guidance, direction and coordination as well as for fiduciary
and governance oversight, the CN-TIPPEE will be responsible for project implementation,
including all fiduciary tasks such as Procurement, Financial Management, M&E,
Communications and Environmental Support.
o The Government of Gabon will ensure that the CN-TIPPEE will keep its key
management, technical and financial positions staffed for the entire duration of the
project to carry out its responsibilities under the project36
. The estimation is a total of
1,008,833,053 XAF (US$2,017,666) for the 5 year period of the CAB4 GA project,
which includes the staffing costs for the key positions in the PIU37.
The MECIT will
be responsible for collecting contributions from relevant institutions and will channel
the subventions to the CN TIPPEE according to the following scheduling in order to
mitigate risks of untimely availability of counterpart funding:
o The Permanent Secretary of CN-TIPPEE can be invited as an observer to the Steering
Committee.
o A representative of the Permanent Secretary of CN-TIPPEE can be included in the
Project Coordination Team.
While all procurement and fiduciary activities will be centralized and carried out by CN-
TIPPEE, the beneficiary institutions MCPEN, ANINF and ARCEP will participate actively
by contributing their expertise and knowledge in preparing TORs, evaluations, participation
in selection committees, etc.
A technical advisor will also be hired that will work closely with the CAB4 GA focal point
within the Project Coordination Team as well as with MCPEN and ANINF to handle the
additional technical workload generated by CAB4 GA. The technical advisor will be the
secretary of the Project Coordination Team. Terms of Reference for the technical advisor
have been drafted and the Gabonese Republic through the PIU CN-TIPPEE is in the process
35
According to its establishing Ministerial Decision, CN-TIPPEE’s objective is to make projects which are in the
public interest on behalf of all stakeholders (GoG, Regional and local administrations, NGOs or Donors) with a view
to implement best practices and sound governance. The size of the CN-TIPPEE can vary to adjust to the project
workload, with a minimum of 6 key staff working on multiple projects.CN-TIPPEE was the PIU of the local
infrastructure development project (PDIL project – P082812) which closed December 2011. As of January 2012, CN-TIPPEE is
in charge of a project financed by GoG (Projet de création de « plateformes de services » (PFS) pour l’insertion à des activités
économiques génératrices d’emplois et de revenus dans la filière « BOIS ») as well as of the PPA of the CAB4 GA project.
Counterpart funding estimates for CAB4 GA have been made and submitted to GoG in the context of the 2012 budget discussion.
To address any possible risks of attrition of staff prior to GoG’s counterpart funding availability under its 2012 budget (which is
introduced as a legal covenant), support can be financed under the PPA, in particular for Financial Management and Procurement
activities. 36
Similar implementation arrangements as for the infrastructure development project (PDIL project – P082812). 37
Permanent Secretary (coordinator), Financial & Admin. Specialist, Procurement Specialist, M&E and Safeguards Specialist.
no later than
30 June 2012
no later than
31 May 2013
no later than
31 May 2014
no later than
31 May 2015 TOTAL
XAF XAF XAF XAF XAF
235,694,379 302,392,773 302,392,773 168,353,128 1,008,833,053
22
of hiring the technical advisor.
B. Results Monitoring and Evaluation
40. ARCEP will be responsible for collecting the relevant data throughout the project
implementation, because proposed results framework and monitoring indicators (see Annex 1)
are usually collected by the Regulatory Authority in the context of its market oversight duties.
ARCEP will get its information directly from the operators and ISPs and from ANINF and will
conduct surveys as appropriate; in order to ensure a smooth and regular collection of
information, ARCEP must identify within each source of data (operators, ISPs, ANINF) a focal
point that will serve as ARCEP’s counterpart for M&E so that the person can anticipate data
collection and the necessary resources and provide data to ARCEP. Indicators will be collected
yearly as a minimum, but ARCEP will endeavor to collect them every 6 months.
41. The PIU CN-TIPPEE will have overall responsibility for reporting to the Fiber
Optic Commission. ARCEP will provide the PIU CN-TIPPEE with collected monitoring and
evaluation indicators. CN-TIPPEE will put and prepare M&E reports on a biannual basis that
will include the updated Results Framework and the Action Table as well as the strategic
environmental and social safeguards indicators, listing the corrective actions to be implemented
with deadlines and persons responsible clearly identified. The report will be sent to the Bank for
information (see Annex 3 for detailed information).
C. Sustainability
42. Sustainability of the proposed project is determined by GoG’s commitment and
private sector participation. GoG is highly committed to the project, as it fully aligned with
the broader three-year plan called ―Digital Gabon‖ (Gabon Numérique), this plan being itself
under the umbrella of the Presidential ―Emerging Gabon‖ program), increasing the sustainability
of the project outcome. GoG is also committed to implementing PPP and Open Access principles
in a homogeneous way for international, regional and national connectivity establishing low cost
connectivity in the country. Setting up a PPP via two SPVs for owning and operating the
connectivity shall ensure effective operation and maintenance of the infrastructure. In Africa
private companies have demonstrated, almost without exceptions, that they are more capable of
operating telecoms networks and deliver services that public-owned entities. Private sector
commitment to prepurchased capacity will be established through appropriate binding legal
agreements to ensure sustainability.
43. 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.
44. 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 as MCPEN, ANINF and ARTEL, the
benefits of the project are expected to last far beyond program completion. As such, capacity will
23
support the creation of ICT policy and regulatory know-how to guide sector growth and
transformational applications in the future.
VI. Appraisal Summary
A. Economic and Financial Analysis
45. Connecting to ACE is most cost-effective long term option for improved access to
international connectivity in Gabon. Financial analysis was performed for Gabon38
. The
analysis considered a variety of radio wave, satellite and fiber options and concluded that for a
coastal country like Gabon a submarine fiber link is the best overall option in terms of long-term
cost effectiveness and bandwidth availability when international connectivity required is
multiples of Gbps as it is the case for broadband services as well as in terms of quality of service.
46. Connecting Gabon to ACE is a project that will result in a very suitable economic
return to Gabon. Detailed demand study has been conducted to assess and confirm robust
pending demand for international connectivity in Gabon (see Annex 7). All scenarios show
positive IRR after 15 years, even in adverse conditions caused by project costs higher than
budgeted or demand for connectivity not materializing as expected. In the base case scenario,
assuming a discount rate of 15%, the project is estimated to have a NPV of US$8 million over 15
years and an IRR of about 26%, breakeven payback occurring in 2014.
47. Impact of improved international access through ACE will provide significant
potential to decrease retail prices for broadband services in Gabon either via fixed
broadband (DSL, WiMax) or mobile (3G) broadband access networks for residential and
very small businesses, which will in turn increase annual GDP per capita in Gabon.
Compared to current average US$30 per month per Mbps via satellite, the ACE submarine cable
will allow an almost 6 fold decrease towards around US$5 per month per Mbps. Membership in
the ACE submarine cable, if accompanied with robust regulation to ensure competitive pricing
releases demand, has potential to provide low cost international access to a broad range of the
population and very small businesses because broadband demand is very sensitive to changes in
price, and even small reduction in price can generate substantial demand and penetration in the
country. Recent evidence suggests that increasing overall service coverage and promoting access
to telecommunications services provide a substantial economic benefit to low and middle income
countries. World Bank research on the economic multiplier effect of increased broadband
penetration rates, presented in the chart below, indicates that each 10% increase in broadband
penetration increases overall GDP growth in developing countries by 1.38%39
. Although
causality in the relationship between broadband and growth is hard to prove with the data
available, analysis suggests high likelihood of causality. Based on the economic multiplier and
estimated penetration rate in Gabon with or without ACE capacity, the analysis indicates that the
project will increase annual GDP per capita in Gabon by an annual average of approximately
0.91% over the first 10 years of operation of the ACE submarine cable.
38
Based on the report and financial model developed by Mr. Yves Rouhaud, Technical and Economical consultant advising GoG
(see : Projet CAB4-CITGB, Plan d’entreprise du PPP pour l’accès au câble sous-marin ACE, Date : 12 décembre 2011). 39
Source: "Information and Communications for Development 2009: Extending Reach and Increasing Impact, World Bank.
Chapter: Economic Impacts of Broadband, page 45. Authors: Christine Zhen-Wei Qiang and Carlo M. Rossotto with Kaoru
Kimura.
24
48. Building a terrestrial fiber optic link is also most cost-effective long term option for
improved access to international connectivity on the Libreville – Franceville link as well as
for cross-border traffic with Congo. Detailed demand study has been conducted to assess and
confirm robust pending demand for international and national connectivity for Phase I of the
national backbone, using a combination of ―empiric‖ data from interviews and questionnaires
with GoG, operators, ISPs as well as large businesses and of ―theoretical‖ data from a broadband
demand forecasting tool (see Annex 7).
49. The national backbone Phase 1 will result in a suitable economic return to Gabon.
All scenarios show positive IRR after 15 years, even in adverse conditions caused by project
costs higher than budgeted. In the base case scenario 4, assuming a discount rate of 15%, the
project is estimated to have a NPV of US$0.3 million over 15 years and an IRR of 15%,
breakeven payback occurring in 2019
B. Technical
50. International connectivity: the ACE consortium is deemed to be technically
qualified and structured according to best practices in the industry. The team’s assessment
is that the ACE consortium is being structured in a manner consistent with international good
practices in the industry, and is led by major industry players. Given the experience of key
consortium members in designing, commissioning and operating submarine cables, the
implementation risk is minimal. As with all cables, there is, however, a risk of breaks in
operational system. The cost of membership for Gabon will be US$25 million based on the latest
basic system configuration. A as member of the consortium, Gabon will obtain a fixed ownership
percentage and an allocated capacity (based on kilometers and branch capacity) at a fixed price.
It is agreed that for a single landing station membership, Gabon will obtain approximately 3.6
percent of the capacity at a cost of approximately US$25 million. The percentage and dollar
amounts are based on a membership cost model developed by the ACE consortium management.
The model enables members to specifically determine the payment required for membership and
the bandwidth capacity that will be allocated. While the model and the resulting payment
amounts were finalized when the consortium C&MA was signed by all members on June 5,
2010, there may be slight variations around the US$25 million estimate, depending on final
configuration of the system and the final list of ACE members.
51. Phase 1 of the national backbone: due diligence has been made on the investments
associated with Phase I of the national backbone, confirming a total Capital Expenditure
(CAPEX) of US$39 million40
. Building the fiber link alongside railway tracks and setting up
technical sites and transmission equipments in all railway stations41
allows fully addressing the
internal connectivity needs of the railway company SETRAG (which is currently using VSAT
40
The Component 2 – Connectivity of the project foresees a total of 28.5 + 12 = 40.5 US$ million (i.e. 4% contingencies) to
finance the terrestrial fiber optic link Libreville - Franceville - Bakumba – Lekoko / Border with Congo (approx. 800 km) to
interconnect with the Congolese link Dolisie – Mbinda (already financed under CAB3 CG) and the additional link Lekoni -
Franceville – Koulamoutou (approx. 340 km) within the first phase of roll out of a national backbone. 41
Building and sites as well as transmission equipments which are to be used only by the railway company (24 locations) are
included in the project, with an estimated CAPEX of US$ 2 million.
25
connections) offsetting the relative cost disadvantage of civil works alongside existing railways
vs. existing roads. Technical assistance including transaction/legal, regulatory and
economic/financial support will be provided under Component 1 of the project to define with the
SETRAG the terms and conditions under which the fiber will be laid down and operated by the
SPVs. A route survey will be undertaken by GoG to determine jointly with SETRAG the best
technical solution for laying down the fiber (fully manual, use of machines alongside the tracks
when sufficient space is available, use of machines positioned on specially equipped wagons,
etc.). The estimated average total CAPEX per km for the project is US$34,962 per km, to be
compared with an Average Cost Per Km To Deploy Fiber Optic Networks (Excluding Highest
and Lowest) in Africa of US$27,846 per km (according to sample data available to the Bank’s
ICT unit). Technical assistance under the PPA will also support GoG in defining the appropriate
strategy for the competitive and open tender in the specific context of Gabon to ensure best value
for money.
52. The main risks of the proposed operation lay in defining the practical details of how
to implement PPP and Open Access principles and have been addressed during project
preparation.
Given the mandate of the ANINF, the GoG's preliminary proposal for the new international,
regional and national capacity was to have a state-owned and controlled company (HoldCo
holding) the assets built according to the Short term Connectivity objectives of Digital
Gabon42
, with a PPP operating the assets (OpCo) and providing the connectivity on a
wholesale basis to its shareholders operators and ISPs according to open access principles43
.
This proposed governance structure differs from the ACE projects financed by the Bank with
IDA funds (STP, Liberia, The Gambia, Sierra Leone, and Guinea) which have been
predicated on private sector ownership and operation of the facilities that are being funded.
In most cases the ownership of the assets starts out in state hands, but then much of the
project is aimed at transferring the assets to the private sector or to a PPP (with some residual
state interest) if and when there is sufficient private sector appetite, financing and capacity to
take up a majority of the Government's share. It bears however resemblance with the option
envisaged for CAB3 Congo (financed with IDA funds) for regional terrestrial fiber optic
links where the Congolese Government wants to keep the ownership of the infrastructure for
security and sovereignty reasons: a Concession Contract will be established with a Private
Operator on a Build Operate and Transfer (BOT) model to develop and market fiber (full
network).
According to the GoG’s preliminary proposal, operators and ISPs in the OpCo would:
o acquire the connectivity from the HoldCo on a 15 years44
IRU45
basis at a price
oriented towards the cost of initial capacity on the ACE submarine cable (dividing the
42
New international capacity available in Libreville via the ACE (Africa Coast to Europe) submarine cable (estimated ready for
service date: August/September 2012); New national capacity via a submarine cable from Libreville to Port Gentil (estimated
ready for service date: February 2012); New national and regional capacity via terrestrial fiber from Libreville to Franceville and
from Franceville to Lekoko to interconnect with the link Dolisie – Mbinda on the other side of the border in Congo (financed
under CAB3); New national capacity via terrestrial fiber from Lekoni to Koulamoutou via Franceville. 43
For the avoidance of doubts, Total Group will neither be a shareholder of the HoldCo nor of the OpCo. 44
15 years is the duration of the ACE C&MA. However the life of a submarine cable is typically 20 to 25 years. It is therefore
very likely that the ACE C&MA will be expanded to coincide with the life of the submarine cable.
26
initial investment costs of US$30 million by an minimum expected demand for the
initial capacity46
);
o buy a share of the OpCo (US$500,000) and split between them the operating and
maintenance costs of the international/regional/national connectivity based on
effectively used connectivity;
o with a resulting total price (ownership + operation) – if expected demand by operators
and ISPs materializes – of US$172/E147
per month for international capacity towards
Europe and US$164/E1 per month for the submarine cable Libreville Port Gentil.
Such level of proposed price for connectivity is consistent with the recently observed trends
in East and Southern Africa where new competitive submarine cables have now been in place
for over a year and where data has recently been made public. Due to the competitive
pressure there, bandwidth prices have fallen substantially and consumption/demand has
increased dramatically. Bandwidth pricing in the region is now moving toward $100-
$200/month/E1 at a wholesale level (for long-term - i.e., 15 year, IRU type pricing),
producing much higher levels of demand. This has already necessitated the commissioning of
upgrades to submarine cable capacity, much earlier than initially planned.
With such level of proposed price for connectivity proposed on an IRU basis and with
involvement in the operation so as to keep costs to a minimum, there is interest from the
private sector (operators and ISPs) to participate in this much needed international, regional
and national connectivity project. Furthermore this level is below the PDO (Average monthly
price of wholesale international E1 capacity link from capital city to Europe) target values of
similar bank financed projects (e.g. US$4,500 for STP; less than US$2,000 for Guinea,
Liberia, and Sierra Leone; less than US$1,000 for the Gambia) showing a clear objective of
GoG to have the benefits of the connectivity investments immediately and fully transferred to
the sector and ultimately to the Gabonese residential and business customers as well as the
bigger market potential for broadband in Gabon.
A public workshop held November 30, 2011 with the consultants retained under the PPA,
GoG and the private sector identified 3 main improvements to implement:
o The HoldCo is open in principle to private sector shareholders, GoG warehousing for
now the capacity built according to the Short term Connectivity objectives of Digital
Gabon. The PPP will therefore be structured around 2 Special Purpose Vehicles
(SPVs), the HoldCo and the OpCo, involving various equity stakeholders with
different rights and interest as is common practice in Public Private Partnerships.
o The prices are to be oriented not only on the initial capacity installed (higher cost per
Mbit/s) but also on a reasonable estimate of future capacity upgrades (lower cost per
Mbit/s) having the private sector to commit to sufficient prepurchased capacity to
45
An Indefeasible Rights of Use (IRU) is a legal interest created by contractual agreement that confers an indefeasible and
exclusive right of access to some or all of the capacity in a telecommunications cable system on another party. 'Indefeasible' is a
term meaning not liable to be annulled or forfeited. An IRU is specified in terms of available bandwidth (e.g. STM-1, which is a
155 Mbit/s transmission capacity) and is a fairly standard option to acquire connectivity in telecoms. 46
In GoG’s initial proposal the expected demand corresponds to 75% of the initial capacity of the ACE submarine cable and to
33% of the initial capacity of the Libreville Port Gentil submarine cable. 47
An E1 is a 2Mbit/s transmission capacity.
27
derive fully cost oriented prices48
. Such fully cost oriented prices shall not change
unless according to a pricing formula defined ex ante. The consequence of such a
pricing approach would be to have an economic signal to the private sector equivalent
to the situation where there would be one SPV only owning and operating the
capacity.
o The possibility of paying the IRUs over 2 or 3 years is also under review, so that the
annual financial burden on smaller operators and ISPs would be equivalent to the
current out payments for satellite capacity (between 0.5 and 1 million US$ per
annum). Such flexibility in paying the IRUs could support higher financial
commitment of the private sector in the early phases of the project, which will in turn
lead to a better usage rate of the available capacity on the submarine cable and hence
lower fully oriented cost oriented prices for all operator and ISPs. Ultimately this
would translate into lower retail prices for Gabonese residential and business
customers contributing to higher broadband penetration in the country.
Business cases for all components of the Short term Connectivity objectives of Digital
Gabon49
have been prepared by the consultants in the PPA and discussed with GoG and the
private sector, to ensure prices are fully cost oriented. Regulatory due diligence has
concluded that ―open access‖ (fair and transparent pricing and access) to the bandwidth
capacity provided by the ACE cable at the domestic level can be implemented under the
existing regulatory framework (taking into account applicable regional directives)50
.
During appraisal further changes to the GoG’s preliminary proposal were requested. GoG has
indicated its strong preference to initially rely on an independent experienced private
wholesale operator selected via an international call for tender to ensure effective operation
and maintenance of the assets.
53. Guidelines were agreed with GoG during appraisal to ensure smooth
implementation of this Open Access and PPP structure as follows:
1. A corporation will be set by GoG (SPV HoldCo) to own the new international, regional
and national capacity that will be made available according to open access principles,
with a ACE subsidiary that will own the assets covered by the ACE CM&A agreement.
The HoldCo and its ACE subsidiary are open in principle to private sector shareholders,
GoG warehousing for now the capacity built, but the Gabonese operators and ISPs not
effectively being involved in the initial phase of the PPP.
2. As private sector interest is the strongest for international connectivity, statutory
documents of the ACE subsidiary will be drafted with a sufficient level of details to
enable swift transfer of shares to the private sector when the decision is taken by GoG
(e.g. rules for setting the value of the shares, golden share of the HoldCo …).
3. With the assistance of consultants hired under component 1 – Enabling environment of
48
A higher value will be retained for the PDO to cater for (1) sensitivity analysis on the forecasted demand and (2) the average
value between prices paid by shareholders of the OpCo and prices paid by other operators or ISPs in the country that will buy on
a wholesale basis from the shareholders. 49
See Annex 7: Economic and Financial Analysis. 50
See: Report by Mrs. Claire Audin, Regulatory consultant advising GoG (Rapport d’Etat des Lieux, Date : 30 novembre 2011).
28
the project51, the HoldCo and its subsidiary ACE will award through an international open
and transparent tender an Operating, Maintenance and Commercialization contract to an
experienced independent private wholesale operator52
. The contract will be awarded for
an initial duration of 3 years and will contain detailed provisions on (i) the reference offer
(scope of services, level of quality of services, collocation…) and on (ii) the obligation to
report publicly against a set of Key Performance Indicators (KPI) chosen to reflect in
particular price levels, quality of service and profitability.
4. The IRU prices will be cost oriented not only on the initial capacity installed (higher cost
per Mbit/s) but also on a reasonable estimate of future capacity upgrades (lower cost per
Mbit/s) having the private sector to commit to sufficient prepurchased capacity to derive
fully cost oriented prices.
5. During supervision missions, GoG and Bank team will review performance of
independent private wholesale operator against appropriate KPIs and make appropriate
recommendations should performance not meet expectations.
54. GoG has an incentive to select swiftly a private wholesale operator because international
connectivity partially financed under the project will be ready for service by end 2012 (whilst the
national backbone is yet to be built). The main risks associated with practical details of how to
implement PPP and Open Access principles are addressed as follows:
i. New international, regional and national capacity is made available according to
open access principles and warehoused by GoG until decision to share ownership
with private sector is taken. This shall be ensured through the combination of (a) a
disbursement condition (payments for the ACE consortium fee will be made once the
HoldCo and its ACE subsidiary have been satisfactorily established) and (b) the ongoing
technical assistance of GoG by the legal, regulatory and techno-economic consultant
whose ToRs already encompasses these duties (financed under the PPA).
ii. Independent private wholesale operator is selected in form and substance
satisfactory to the Bank. This shall be ensured through the combination of (a) a
disbursement condition (payments for the construction of the national backbone will be
made once the private wholesale operator has been satisfactorily selected) and (b) the non
objection on the ToRs of the transaction advisor that will assist GoG in selecting the
private wholesale operator (under advanced procurement).
iii. Performance of private wholesale operator against appropriate KPIs is monitored
as part of project supervision. This shall be ensured through an obligation in the
Operating, Maintenance and Commercialization contract for the private wholesale
operator to publicly report against a set of KPIs chosen to reflect in particular price
levels, quality of service and profitability. During supervision mission, GoG and Bank
team will review performance against KPIs and make appropriate recommendations
should performance not meet expectations.
51
Under advanced procurement. 52
GoG intends to apply such an approach to all infrastructure projects within the presidential programme ―Emerging Gabon‖.
29
Figure 7: Open Access Regime & PPP for international and national connectivity under CAB4 GA
C. Financial Management
55. FM assessment. In accordance with the new Financial Assessment Principles and
AFTFM ORAF guideline, the Financial Management arrangements of the Central African
Backbone APL4 Gabon Project (CAB4 GA) have been reviewed to determine whether it is
acceptable to the Bank. The CAB 4 GB project will be implemented by the Permanent Secretary
(PS) of the National TIPPEE Program. The PS will have overall responsibility over the fiduciary
aspects, all procurement aspects, and the preparation and consolidation of financial reports. The
financial capacity of the PS is found acceptable to the Bank because the entity will integrate the
staff and resources of the former Local Infrastructure Development Project (PDIL – Projet de
Développement des Infrastructures Locales), which has an appropriate accounting, internal
control and relevant financial reporting already in place.
56. FM rating. The PIU will be reinforced by the mitigation measures below mentioned
aimed to be implemented during the PPF. The FM performance of this PIU for the Bank-
financed project, PDIL is rated satisfactory following the recent supervision carried out in
September 2011. The PIU has no overdue audit report. The conclusion of the Financial
Management Assessment is that, the overall project arrangements satisfy the Bank’s
requirements under OP/BP10.02 to provide, with reasonable assurance, accurate and timely
information on the status of the execution of the project.
57. The overall FM risk is considered Moderate since the implementing agency is an
existing and adequately-performing PIU endowed with all fiduciary requirements. The proposed
financial management arrangements for this project are considered adequate to meet the Bank’s
minimum fiduciary requirements under OP/BP10.02. The assessment recommended among other
measures (i) the Adoption of the Project Implementation Manual and (ii) the amendment of
contract of the current external auditor. Details of the financial management arrangements are
described in the Annex 3.
58. GoG has received a technical and financial proposal from the existing PDIL-auditor to
extend its use to the CAB4 GA Project and submitted a draft contract to the Bank during
30
appraisal. A signed amendment to the contract with the existing PDIL auditor has been provided
by GoG.
59. GoG has hired a consultant to prepare the Project Implementation Manual (covering
Procurement and FM, as well as environmental and social safeguards). A draft Project
Implementation Manuel (PIM) was submitted to the Bank for review on January 16, 2012.
Comments from the Bank and from GoG have been forwarded on January 28, 2012. Adoption
of the finalized PIM is a condition of effectiveness of the Loan Agreement.
60. Retroactive financing. GoG is requesting refinancing for two payments for a total of
US$4.4 million. In accordance with OP 6.00 – Bank Financing, Retroactive financing is
permitted under the following conditions which are satisfied in this specific case: (a) the
activities financed are included in the project description; (b) such payments do not exceed 20
percent of the loan amount; and (c) the payments were made by the borrower not more than 12
months before the expected date of Loan Agreement signing53
.
o The first payment amounts to US$2.0 million. The conditions of OP 6.00 are fulfilled
because: (a) the activities financed are a share of ACE Consortium fee under
Component 2-(i) of the project; (b) the payment amounts to 1% of the Loan amount;
and (c) the payment was made on 1 December 2011, i.e. less than 5 months before the
expected date of Loan Agreement signing (which is 22 April 2012).
o The second payment amounts US$2.4 million and is approved by FY12 Finance Law.
The conditions of OP 6.00 are fulfilled because: (a) the activities financed are a share
of ACE Consortium fee under Component 2-(i) of the project; (b) the payment
amounts to 1% of the Loan amount; and (c) the payment is expected to be made
before 22 April 2012, i.e. the expected date of Loan Agreement signing.
61. Refinancing date of the PPA. The refinancing date of the PPA was March 1, 2012. An
extension to June 30, 2012 has been approved on February 28, 2012.
62. IBRD Flexible Loan choice. GoG confirmed its preferences for the IBRD Flexible Loan
given the Government’s debt policy and the nature of the investment (fiber optic cable). These
preferences are as follows:
Spread over LIBOR Fixed Spread
Repayment terms Payment dates: May 1st and November 1st
Grace period: 6 years
Total repayment period (including Grace period) : 18 years
Repayment schedule linked to disbursement
Amortization profile: level repayment
Front-end fee Paid upfront from own resources
Options Currency conversion ; Interest rate conversion
53
The condition requiring that the payments are for items procured in accordance with applicable Bank procurement
procedures are not applicable in this case as the Procurement Guidelines do not apply to the Consortium Fees ---
which is not a procurable item --- in line with the waiver obtained for the previous operations supporting the
connection to the ACE Cable.
31
D. Procurement
Procurement assessment. A procurement assessment has been carried out during the pre-
appraisal mission of November 2011 and has concluded that the PIU CN-TIPPEE has
adequate experience and capacity to carry out procurement activities related to the proposed
project. The PIU CN-TIPPEE is familiar with Bank procurement procedures through its
experience with implementing of the Local Infrastructure Development Project financed by
the Bank. As a result, procurement risk is assessed as Moderate. Risk mitigation measures
have been discussed with the PIU CN-TIPPEE and agreed. A brief summary of the
procurement capacity assessment and project procurement arrangements are provided in
Annex 3.
Procurement plan. A simplified procurement plan for the project for 18 months has been
received by the Bank and found to be acceptable. It will be updated at least once annually
(or as required) afterwards to reflect project implementation needs (see Annex 3).
63. All procuring entities, as well as bidders, suppliers, and contractors shall observe the
highest standard of ethics during the procurement process and execution of contracts financed
under the project in accordance with paragraph 1.16 of the Procurement Guidelines and
paragraph 1.23 of the Consultant Guidelines dated May 2010 and revised January 2011.
Procurement under this project will also be carried out in accordance with the ―Guidelines on
Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA
Credits and Grants‖ dated October 15, 2006 and revised in January 2011. The Bank's
Procurement Guidelines will not apply to the financing of the Consortium Fee under Component
2 – (i), (in line with the waiver obtained for the previous operations under the ACE Cable) as the
Bank’s funding of the Consortium Fees (paid in different installments) is made against a set of
rights including use of a certain amount of capacity at preferred rates and a share of ownership of
an indivisible cable infrastructure asset, which is not a procurable item under the Procurement
Guidelines.
E. Social and Environment
64. Safeguard considerations for the international connectivity via the ACE submarine
cable landing in Libreville.
Final versions of the safeguards documents (ESIA, ESMP, ARAP) were reviewed and
cleared by the World Bank on December 29, 2011. Submission for public disclosure in the
Bank InfoShop has been made on January 4, 2012 and documents were disclosed publicly in
local language in the country on January 31, 2012. The ESIA indicates overall moderate to
low negative environmental and social impacts; the ARAP indicates that number of Project-
Affected People (PAPs) is 13, as the project has negative impacts on the living environment,
mobility and livelihoods of some people located along the road between the shore and the
landing station.
32
An environmental audit was conducted and ascertains that there are no outstanding
issues with works under the ACE component. The safeguards documents have been
disclosed by GoG to the Bank when works had started and were at an advanced stage and the
Bank requested GoG to stop works until final versions of ESIA, ESMP and ARAP (taking
into comments by the Bank’s environmental and social safeguards team) were cleared by the
Bank. An Environmental Audit was conducted in Gabon from January 13 to 18, 2012 and
concluded as follows: ―The mission has visited the ACE site and contacted and discussed
with all entities that are involved in this ACE project. All entities were unanimous that this
investment is key in the context of the development of a country such as Gabon. We noted
that all structures in charge to implement and to follow up environmental and social
mitigation measures are in place with mandates supported by legal texts. Nevertheless, flow
of information and coordination between the aforementioned entities are weak. The mission
noted that all works done consisting of the laying and connection of the submarine cable to
the landing station is completed as well as the filling of holes along the cable route. They
were performed according to the technical specifications in contract execution. So far, no
adverse environmental impacts and complaints have been recorded. However, the cleaning of
campsite located at the first section cable landing and the rehabilitation of pathways and road
sections crossed by the cable need to be undertaken. To this end, public and road users have
to be informed sufficiently in advance before and during works. In addition, putting in place
long term protection and follow up measures of the use of the two back street sections
respectively located at la Sablière and Angonje is strongly recommended. As the ESMP has
already been approved by the Bank, disclosed at the InfoShop and disclosed in country, the
Steering Committee and the PIU are required to take action in completing the remaining
works in compliance with the environment safeguards underlined in the contract execution
and developed in the ESMP‖.
65. Safeguard considerations for the national backbone connectivity (Phase I).
All three safeguard documents for national backbone connectivity were submitted in draft
version to the Bank on December 27, 2011 and comments have been provided by the Bank’s
environmental and social safeguards team on January 4, 2012. Final versions have been
cleared by the Bank on January 23, 2012 for ESMF and RPF on January 25, 2012 for IPPF.
All documents have been subsequently disclosed publicly in the country on January 31, 2012
as well as in the Bank InfoShop.
The terrestrial fiber optic link is expected to follow major railway tracks or roads already in
place, and the project connection at the border with Congo will not lead to social conflicts
because the borders between the two countries have been clearly delineated and materialized.
Negative environmental and social impacts of the project come mainly from the laying of the
fiber (excavation and crossing human settlements, fields, forests, rivers, etc.). The negative
environmental impacts of the project resulting from the work will mainly concern: soil
erosion (due to the unstable nature of soils), the risks of water pollution and degradation, loss
of vegetation due to deforestation to clear the right-of-way, risks of pollution and degradation
of rivers, etc. The significant negative social impacts will mainly concern the acquisition of
land for the construction of infrastructure, the disruption of life setting, the occupation of
private lands, the possible destruction of crops, the deforestation of woodlands, the risk of
33
encroachment on areas of indigenous peoples and the sacred forests, the risk of disruption of
cultural areas during the excavation, the risks of accidents during the work, the risks of
disruption of networks of dealers (water, telephone, electricity), etc. The accurate estimate of
the number of people who will be affected is not feasible at this stage of the study. However
a rough estimate could be made according to the planned route. For the whole railway route,
the number of people likely to be affected by the implementation of fiber optic cable is
estimated at 250, while along the terrestrial road the number is 200. Land requirements are
estimated at 100 ha for the railway line and 80 ha for the terrestrial road. Interviews with
different categories of Indigenous Peoples players (leaders, women, and youth) show that the
project has a lot of support; however, Indigenous Peoples have expressed broader concerns
about being marginalized on development activities in the country.
Once the final path for the terrestrial fiber foreseen alongside existing railway tracks and
roads and the final location of the associated technical sites are chosen and the specific civil
works identified, the Borrower will prepare and consult upon an Environmental and Social
Management Plan (ESMP) as well as a Resettlement Action Plan (RAP) or an Abbreviated
RAP ---whichever will be appropriate--- and an Indigenous Peoples Plan (IPP) which will be
then publicly disclosed in local language in the country as well as in the Bank InfoShop.
66. Arrangements for environmental and social safeguards supervision have been
defined and agreed. The funding requirement for the environmental and social safeguards is
estimated in total at US$1,672,800, with US$340,000 for the International connectivity via the
ACE submarine cable landing in Libreville and US$1,332,800 for National backbone
connectivity (Phase I) via a terrestrial fiber optic link. The Bank will finance US$1,468,800 and
GoG US$204,000 (see Annex 3). Relevant provisions of the safeguard documents (ESIA, ESMP,
ARAP for international connectivity; ESIA, ESMP, ARAP for national backbone connectivity
(Phase I)) have been included in the Project Implementation Manual. Inputs from Bank’s
environment and social specialists will be provided throughout project implementation, to
support the Environmental and Social Safeguards Focal Point (Point Focal Environnement et
Social (PFES)) within the PIU as well as the Line Ministry in charge of Ecology and Sustainable
Development) in monitoring the effective implementation of safeguards.
F. Loan conditions and covenants
Effectiveness conditions:
67. The Fiber Optic Commission has been established and has been made operational, in
form and substance satisfactory to the Bank.
68. The Gabonese Republic shall have adopted the Project Implementation Manual in form
and substance satisfactory to the Bank.
Disbursement conditions: 69. No withdrawal under Component 2.1 (international connectivity) of the project to finance
a share of the GoG’s $15 million contribution (consortium fee) for participating in the ACE
submarine cable, until and unless:
34
(a) (A) the ACE Subsidiary has been duly created pursuant to PPP Guidelines, registered and
made operational in the Borrower’s territory, including through the appointment of its
managers and the adoption of the shareholders’ agreement and by-laws, all in form and
substance satisfactory to the Bank; and (B) there shall be furnished to the Bank an
opinion satisfactory to the Bank of counsel acceptable to the Bank showing that the ACE
Subsidiary has been duly created, registered and made operational in the Borrower’s
territory and is legally authorized to operate in accordance with the Borrower’s laws;
(b) (A) the ACE Agreement, in form and substance satisfactory to the Bank, has been entered
into between the Borrower and the ACE Subsidiary; and (B) there shall be furnished to
the Bank an opinion satisfactory to the Bank of counsel acceptable to the Bank showing
that the ACE Agreement has been duly authorized or ratified on behalf of the Borrower
and the ACE Subsidiary, and executed and delivered on their behalf, and is legally
binding upon the Borrower the ACE Subsidiary in accordance with its terms; and
(c) upon its concurrence, the ACE Consortium has transferred to the ACE Subsidiary all the
rights and obligations of the Borrower in the Construction and Maintenance Agreement
and has fully substituted the Borrower with the ACE Subsidiary as the member of the
ACE Consortium.
70. No withdrawal under Components 2.2 and 2.3 of the project to finance the National
Backbone, until and unless:
(a) (A) the SPV has been duly created pursuant to PPP Guidelines, registered and made
operational in the Borrower’s territory, including through the appointment of its
managers and the adoption of the shareholders’ agreement and by-laws, all in form and
substance satisfactory to the Bank; and (B) there shall be furnished to the Bank an
opinion satisfactory to the Bank of counsel acceptable to the Bank showing that the SPV
has been duly created, registered and made operational in the Borrower’s territory and is
legally authorized to operate in accordance with the Borrower’s laws;
(b) (A) the Backbone Agreement, in form and substance satisfactory to the Bank, have been
entered into between the Borrower and the SPV; and (B) there shall be furnished to the
Bank an opinion satisfactory to the Bank of counsel acceptable to the Bank showing that
the Backbone Agreement has been duly authorized or ratified on behalf of the Borrower
and the SPV, and executed and delivered on its behalf, and is legally binding upon the
Borrower and the SPV in accordance with its terms;
(c) the SPV Wholesale Agreement, in form satisfactory to the Bank and pursuant to the PPP
Guidelines, has been entered into between the SPV and an operator acceptable to the
Bank and which shall include subrogation rights for the Borrower against the operator
party to the SPV Wholesale Contract upon the failure of the operator to perform any of its
obligations under the SPV Wholesale Contract; and
(d) the Borrower: (i) shall have adopted the ESIA, ESMP, RAP and/or the IPP, as the case
may be, and the same documents have been consulted upon and disclosed as approved by
the Bank; and (ii) shall have verified, through its own staff, outside experts, or existing
environmental/social institutions, that the activities under components 2.2 and 2.3 of the
35
Project meet the environmental and social requirements of appropriate national and local
authorities and that they are consistent with the Bank’s applicable environmental and
social assessment and safeguard policies and comply with the environmental and social
review procedures set forth in the ESMF, RPF and IPPF, as the case may be, and the
Project Implementation Manual.
Legal covenants:
71. The Gabonese Republic shall cause the ACE Subsidiary to take all action necessary on its
behalf:
(a) to carry out the ARAP with due diligence and efficiency and at all times provide the
funds necessary there for; (ii) to adequately monitor and evaluate the carrying out of the
activities provided in the ARAP in the carrying out of the infrastructure partially financed
through the Consortium Fee; and (iii) to maintain the Gabonese Republic and the Bank
suitably informed of the progress in the implementation of the ARAP; and
(b) to carry out the ACE ESIA and the ACE ESMP with due diligence and efficiency; (ii) to
ensure that the relevant mitigation and monitoring provisions of the ACE ESIA and the
ACE ESMP are appropriately included in the works, goods and services contracts to be
concluded for the infrastructure partially financed through the Consortium Fee and that
they are implemented in the carrying out of said infrastructure; and (iii) to maintain the
Gabonese Republic and the Bank suitably informed of the progress in the implementation
of the ACE ESIA and the ACE ESMP.
72. The Gabonese Republic shall cause the SPV to take all action necessary on its behalf:
(a) to comply with the ESMF and to carry out the ESIA and the ESMP, as the case may be,
with due diligence and efficiency; (ii) to ensure that the relevant mitigation and
monitoring provisions of the ESIA and the ESMP, as the case may be, are appropriately
included in the works, goods and services contracts to be concluded under components
2.2 and 2.3 of the Project and that they are implemented in the carrying out of said
components 2.2 and 2.3; and (iii) to maintain the Gabonese Republic and the Bank
suitably informed of the progress in the implementation of the ESIA and the ESMP, as
the case may be; and
(b) to comply with the RPF and the IPPF and to carry out the RAP and the IPP, as the case
may be, with due diligence and efficiency and at all times provide the funds necessary
there for; (ii) to adequately monitor and evaluate the carrying out of the activities
provided in the RAP and in the IPP, as the case may be, in the carrying out of
components 2.2 and 2.3 of the Project; and (iii) to maintain the Gabonese Republic and
the Bank suitably informed of the progress in the implementation of the RAP and the IPP,
as the case may be.
73. To facilitate the carrying out of component 2.1 of the Project, the Gabonese Republic
shall take all action required: (i) to ensure the proceeds of the Loan allocated from time to time to
36
finance the Consortium Fee are transferred to the ACE Subsidiary in an efficient and timely
manner; and (ii) to have in place a suitable legal framework to ensure the Loan is used for the
intended purposes. To that end, the Gabonese Republic shall conclude the ACE Agreement with
the ACE Subsidiary whereby the Gabonese Republic shall transfer the said proceeds of the Loan
to the ACE Subsidiary, on a non-reimbursable basis, in consideration of the undertaking by the
ACE Subsidiary that such amount shall be transferred by the ACE Subsidiary to the ACE
Consortium for the purposes of payment of the membership and participation of the ACE
Subsidiary on behalf of the Gabonese Republic in the ACE Consortium.
74. The Gabonese Republic shall, not later than December 31, 2012, cause the ACE
Subsidiary to execute a wholesale agreement (―ACE Wholesale Contract‖), in form satisfactory
to the Bank and in accordance with the PPP Guidelines, with a suitable operator and which shall
include subrogation rights for the Gabonese Republic against the operator party to the ACE
Wholesale Contract upon the failure of the operator to perform any of its obligations under the
ACE Wholesale Contract.
75. To facilitate the carrying out of components 2.2 and 2.3 of the Project, the Gabonese
Republic shall take all action required: (i) to ensure the proceeds of the Loan allocated from time
to time to finance said components of the Project are transferred to the SPV in an efficient and
timely manner; and (ii) to have in place a suitable legal framework to ensure the Loan is used for
the intended purposes. To that end, the Gabonese Republic shall conclude a contractual
arrangement (―Backbone Agreement‖) with the SPV whereby the Gabonese Republic shall
transfer the said proceeds of the Loan to the SPV, on a non-reimbursable basis, for the purposes
of carrying out components 2.2 and 2.3 of the Project.
76. The Gabonese Republic shall maintain throughout Project implementation the Fiber
Optic Commission under terms of reference satisfactory to the Bank vested with responsibility
for overall technical and operative guidance, direction and coordination during project
implementation as well as fiduciary and governance oversight.
77. The Gabonese Republic shall ensure that the CN-TIPPEE, entity established under
Decree No. 000007/PRIMPPD, dated January 4, 2006, and which is the CAB4 GA Project
Implementation Unit, will keep its key management, technical and financial positions staffed for
the entire duration of the Project to carry out its responsibilities under the Project and for this
purpose deposit through the MECIT into the CN-TIPPEE account in a manner satisfactory to the
Bank: (A) not later than June 30, 2012, an amount of not less than XAF 235,694,379; (B) not
later than May 31, 2013, an amount of not less than XAF 302, 392,773; (C) not later than May
31, 2014, an amount of not less than XAF 302,392,773; and (D) not later than May 31, 2015, an
amount of not less than XAF 168,353,128.
78. The Gabonese Republic shall:
(a) 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;
37
(b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or
about August 31, 2014, a mid-term review 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
(c) review with the Bank, on or about October 31, 2014, or such later date as the Bank shall
request, the report prepared for the mid-term review and, thereafter, take all measures
required to ensure the efficient completion of the Project and the achievement of the
objectives thereof, based on the conclusions and recommendations of the said report and
the Bank’s views on the matter.
38
Annex 1: Results Framework and Monitoring
AFRICA: Central African Backbone - APL4 - Gabon Project (CAB4 GA)
Results Framework
Regional APL (CAB) Objective: Contribute to increase geographical reach and usage of regional broadband network services and reduce prices in Central Africa
Project Development Objective (PDO): Contribute to increase geographical reach and usage of regional broadband network services and reduce prices in the territory of the Gabonese
Republic
PDO Level Results
Indicators54
Co
re S
ecto
r
ind
ica
tors*
Unit of
Measure Baseline
Cumulative Target Values
Frequency55 Data Source/
Methodology
Responsibility
for Data
Collection
Description
(indicator
definition etc.) YR 1
(2012)
YR 2
(2013)
YR3
(2014)
YR 4
(2015)
YR5
(2016)
International
internet bandwidth
Bits per
second
per
person
4,620
[2010]
7,804 10,027 12,086 13,778 14,712 Yearly
ARCEP from
operators
/ITU
PIU from
ARCEP
This indicator measures
the volume of
international traffic
generated by people
who pay for access to
the Internet.
Access to internet
services (number of
subscribers per 100
people)
Y Ratio 14
[2010]
19 21 24 26 28 Yearly
ARCEP from
operators
/ITU
PIU from
ARCEP
This indicator is a proxy
for the volume of
national traffic. It
measures the number of
people who pay for
access to the Internet
per 100 people.
Access to telephone
services (fixed
mainlines plus
cellular phones per
100 people)
Y Ratio 14756
[2010] 12057 121 122 123 12558 Yearly
ARCEP from
operators
/ITU
PIU from
ARCEP
This indicator is a proxy
for the volume of
national traffic. It
measures the total
number of fixed
telephone lines and
mobile cellular
subscriptions per 100
people.
54
All the other countries that are covered by previous APL phases or will be covered by the following APL phases use the same PDO. 55
Indicators will be collected yearly as a minimum, but ARCEP will endeavor to collect them every 6 months. 56
Assuming total population of approx. 1,545,255 and an annual growth rate of 2% (source: CIA World Factbook). The percentage of multiple SIM holders is at least 25% (estimate 2008, with 3
operators in the market) and is probably closer to 35% in 2010, which corresponds to a real penetration of 109%: the market for telephone services in Gabon is reaching saturation. 57
Gabonese operators have started to ―clean up‖ their database to exclude non-active customers. Furthermore, it is scheduled that all SIM card owners will be registered by the Gabonese mobile
operators before End 2012. Both operations (clean up of non-active customers, identification of SIM card holders) are generally associated with a sharp decrease in the number of mobile cellular
subscriptions. 58
As the market for telephone services in Gabon is reaching saturation, only moderate growth is expected when clean up of non-active customers and identification of SIM card holders will have taken
place.
39
Average monthly
price of wholesale
international E1
capacity link from
capital city to
Europe
US$/
month/
2Mbps
10,500
[2010] 5,000 2,000 1,000 800 500 Yearly
ARCEP from
operators
/ITU
PIU from
ARCEP
This indicator is a proxy
for the average price of
international
communications. It
measures the wholesale
price of an E1 or 2
Mbit/s capacity
acquired by operators
and ISPs in the country
to carry traffic from/to
Europe.
Number of project
direct beneficiaries
(percentage of
female)
Y
#
benefici
aries
(%
female
benefici
aries)
1,545,25559
(51%)
[2010]
1,607,683
(51%)
1,639,837
(51%)
1,672,634
(51%)
1,706,086
(51%)
1,740,208
(51%) Yearly
ARCEP from
operators
/ITU
PIU from
ARCEP
Direct beneficiaries of
the project include
people who are
connected to the
communications
network in the
Gabonese Republic
(including
telecommunication
services and internet
users, schools,
hospitals, banks,
corporations,
government and public
administrations), to be
measured as the number
of active fixed and
mobile subscribers
(Internet subscribers not
accounted to avoid
double counting).
(Assume % female on a
pro-rata basis using the
current figure for total
population: 51% )
59
Assuming total population of approx. 1,545,255 in 2010 and an annual growth rate of 2% (source: CIA World Factbook). The real penetration number being higher than 100%, it can be assumed that
the whole Gabonese population will benefit from the project.
40
INTERMEDIATE RESULTS
Intermediate Result (Component One): Enabling Environment - Sound environment conducive to investment and competition
Impact on telecom sector
of World Bank technical assistance Y
(composi
te score:
1-low
impact
to 5 –
high
impact)
0 (zero)
[2010] 0 1 2 3 4
Mid term
review and
Project
completion
ARCEP/WB PIU from
ARCEP
This indicator is a proxy for
the enhancement of the
harmonization of sector
regulation that governs the
ICT sector in the region. It
is a qualitative composite
indicator. It rates (i) making
the regulatory framework
more effective at delivering
sector performance, (ii)
improving the capacity of
the regulatory institution to
deliver their mandate and
(iii) increasing the level of
competition in the ICT
sector as a result of the
project technical assistance
Average cost of mobile
call (three minutes, local, peak)
US$/3
min
0.71
[2010] 0.7 0.6 0.4 0.3 0.2 Yearly
ARCEP from
operators /ITU
PIU from
ARCEP
This indicator measures the
cost of a three minute peak
time local call in the same
mobile network.
Retail price of Internet
services (per Mbit/s per Month) Y US$
218
[2010] 200 150 120 100 80 Yearly
ARCEP from
operators /ITU
PIU from
ARCEP
This indicator measures the
price for access to the
Internet at an equivalent rate
of 1 Mbit/s per month paid
by end users in the country.
It will be based on the price
of a 256 kbit/s connection
multiplied by 4.
Intermediate Result (Component Two): Connectivity - Increased access to ICT services
Number of operators and
ISPs buying capacity from
the regional infrastructure deployed
Number
0
[2010] 2 3 4 5 6 Yearly
ARCEP from
operators /ITU
PIU from
ARCEP
This indicator is a proxy for
open access. It measures the
progress of unfettered and
non-discriminatory access at
reasonable prices for all
operators to regional
infrastructure (ACE RFS 3rd
Quarter 2012 ; Libreville-
Franceville-Congo link RFS
2014)
International
Communications
(Internet, Telecoms and
Data) bandwidth Gbit/s
1.2
[2010] 4.9 4.9 4.9 4.9 4.9
ARCEP from
operators
PIU from
ARCEP
This indicator measures the
volume of available
international capacity (ACE
RFS 3rd Quarter 2012)
41
Length of fiber optic network built Y km
0
[2010] 0 0 800 1140 1140 Yearly
ARCEP from
operators and
from ANINF
PIU from
ARCEP
This indicator is a proxy for
the volume of cross-border
communications traffic
flows. It measures the
cumulative number of
kilometers of fiber-optic
network built under the
project to reach the borders
of the country. 60
Increased access to ICT
services: Number of
localities with broadband Internet access (256Kbps)
Number 361
[2010] 3 3 6
62 10
63 10
Mid term
review and
Project
completion
ARCEP via
survey
PIU from
ARCEP
This indicator is a proxy for
increased geographical reach
and usage of regional
broadband network services
(Libreville-Franceville –
Lekoko (Border Congo) RFS
2014 ; Lékoni -
Koulamoutou RFS 2015)
* Results Platform, CT: Telecommunications, Core Sector Indicators and Definitions, May 25, 2010
60
Under Capacity Building activities for ARCEP under Component 1, assistance in improving the Market Observatory will address this issue of lacking data on traffic flows on a country by country
basis. A specific indicator to capture intra-regional traffic flows is expected to be introduced after mid-term review. 61
Libreville – Port Gentil - Franceville. 62
In addition: Moanda - Bakoumba - Lekoko. 63
In addition: Lekoni - Bongoville - Mounana - Lastourville.
42
Annex 2: Detailed Project Description
AFRICA: Central African Backbone - APL4 - Gabon Project (CAB4 GA)
1. The development objectives of the proposed project are consistent with the PDO for the
CAB Program: to contribute to increase geographical reach and usage of regional broadband
network services and reduce their prices in the territory of the Gabonese Republic.
2. The project has three components, Component 1 – Enabling environment, Component 2 –
Connectivity and Component 3 – Project Management, each of which is described in terms of
detailed activities below64
. While the CAB Program includes the possibility of eGovernment
related components, the Bank and GoG have decided that this project will focus on connectivity
elements, whose effective availability is a key prerequisite for successful roll-out of
eGovernment applications, and finance a study on scaling up the e-government strategy and
action plan to leverage such new connectivity. Additional financing to this CAB4 GA project
may be considered in the future to support rollout of selected eGovernment and flagship ICT
applications should GoG confirm its interest to engage in such an ICT transformational agenda
with the Bank as envisaged in the proposed CPS.
3. The project activities will contribute to the development objective of the proposed project
by implementing an effective broadband connectivity and increased competition (addressing
herewith critical connectivity gaps), which will improve access and reduce prices, as well by
setting up a regulatory oversight in line with international and regional best practices with
respect to broadband regulation. This will be achieved through (a) providing Technical
Assistance (TA) strengthening regulatory framework and capacity of key stakeholders (MCPEN,
ANINF and ARCEP) to promote further sector liberalization, resolve market efficiency gaps and
pursue an ambitious broadband and digital policy agenda and (b) leveraging private investment
on the basis of Public Private Partnerships (PPP) arrangements in a homogeneous way for new
and much needed international, regional and national connectivity via the ACE submarine cable
and via a crucial link of the national backbone linking the landing station of ACE, Libreville,
Franceville and the border with Congo to interconnect with the Congolese backbone network.
4. Component 1 - Enabling environment (Estimated Cost US$6.05 million). This
component will include the following activities:
(i) Technical Assistance to promote and implement Open Access Regime & PPP for
international and for national connectivity (e.g. rules of incorporation, reference
wholesale / interconnect offer) through hiring legal/transaction, regulatory and business
advisors to advise GoG on negotiations with private sector operators, by financing
technical and financial audits of the structures to be setup and through workshops on
Promoting PPP investment in the telecommunications sector as well as supporting tender
64
To maximize flexibility, client-responsiveness and the specific national situation of each country (in terms of existing
infrastructure or policy environment), the CAB Program includes a customizable set of activities which have been grouped under
four broad components: ―enabling environment‖, ―connectivity‖, ―eGovernment and flagship ICT applications‖ and ―project
management‖.
43
design and audit of national backbone, of IXP and of a Carrier Hotel65
to access the
international and national connectivity (Estimated Cost US$1.60 million).
(ii) Technical Assistance for the review, improvement and development of the telecoms and
the information laws (cyber-security, privacy, etc). There is a need to review outdated
telecoms law and to ensure their coherence with the regional directives66
(Estimated Cost
US$0.90 million).
(iii) Technical Assistance on key regulatory tools for broadband market and action plan and
development of cost models for interconnection (fixed and mobile) and for broadband
wholesale offers including facility sharing (Estimated Cost US$1.00 million).
(iv) Technical Assistance to strengthen capacity of key stakeholders (i.e. Line Ministry
MCPEN, ANINF and the Regulatory Authority ARCEP) to provide policy and regulatory
capacity building (e.g. regulatory tools, cost models, M&E capacity). This assistance
will support a range of activities, focused studies and training designed to assist MCPEN,
ANINF and ARCEP improving the overall policy, competitive and regulatory
environment for the ICT sector (Estimated Cost US$0.75 million).
(v) Technical Assistance to support the increase of broadband access including rural access
as well as further liberalization in Gabon including the regulatory regime for ISPs and
reaping the broadband benefits of digital switchover. Having a comprehensive policy to
promote broadband use in Gabon will facilitate uptake of demand and applications that
will be available following the improved access to connectivity, in particular though ISPs
and local content providers, as well as increased geographical reach of broadband in the
country by a revised universal access strategy. Also the switchover from analog to digital
television is likely to free valuable frequency resources that could facilitate roll out of
mobile broadband (Estimated Cost US$0.70 million).
(vi) Technical Assistance to support the establishment of an Internet Exchange Point (IXP)
and to implement a management policy for Internet domain names subject to existing
international agreements and arrangements. Generally IXPs are managed by an
association of ISPs and telecommunications operators or similar structure. The technical
assistance will enable Gabonese stakeholders to determine the most appropriate technical
and institutional management structure for future growth and long-term sustainability to
establish an IXP in Gabon as a key prerequisite for successful local content and services
development. The technical assistance will also conduct a diagnosis summary of the
current status of the use of ―.ga‖ and provide recommendations to develop a national
management policy for the ―.ga‖ domain as well as a communication plan around the
―.ga‖ domain at the national and international level, with the objectives of increasing the
65 A carrier hotel, also called a collocation center is a secure physical site or building where data communications media
converge and are interconnected. It is common for numerous telecommunications operators and service providers to share the
facilities of a single carrier hotel. Co-location allows multiple customers to locate network, server, and storage gear—and connect
them to a variety of telecommunications and network service providers (ensuring neutrality towards any operator or service
provider) — with a minimum of cost and complexity. A carrier hotel provides collocation, offering various services to customers
ranging from modest-sized racks to dedicated rooms or groups of rooms (offering herewith the appropriate environment to set up
data centers). In developed countries, carrier hotel can be of sizeable magnitude (often containing more than 5000 square meters
(approximately 54,000 square feet). In our case, the carrier hotel will be much smaller. 66
See: Report by Mrs. Claire Audin, Regulatory consultant advising GoG (Rapport d’Etat des Lieux, Date : 30 novembre 2011).
44
names registered in ―.ga‖, creating direct qualified jobs and attracting foreign investors in
the ICT sector (Estimated Cost US$0.60 million).
(vii) Technical Assistance to assist in scaling up the e-government strategy and action plan to
leverage new connectivity (Estimated Cost US$0.50 million), encompassing a status of
actions undertaken so far in implementing e-government applications, an analysis of
progress and delays, and detailed recommendations to update / revise the Gabonese e-
government strategy with an action plan showing clear priorities, associated timelines and
suggestions for indicators tracking impact on country development and progress towards
a knowledge based economy.
5. Component 2– Connectivity (Estimated Cost US$48.50 million). This component will
include the following activities:
(i) finance a share of GoG’s $15 million contribution (consortium fee) for participating
in the ACE submarine cable on the basis of an open access and PPP structure
(Estimated Cost $7.64 million).
o Providing new and much needed international connectivity to Gabon via ACE will
substantially reduce the cost of international connectivity, increase capacity and
provide more effective redundancy.
o The ACE submarine cable is expected to connect Europe with 12 countries along the
West African coast (Mauritania, Senegal, Gambia, Guinea, Sierra Leone, Liberia,
Côte d'Ivoire, Ghana, Nigeria, Equatorial Guinea, Gabon, Sao Tomé), of which 5
have already mobilized World Bank financing to join ACE (Liberia and Sierra Leone
under WARCIP 1-A discussed and approved by the Board on January 20, 2011), STP
under APL2 on January 12th, 2011, The Gambia and Guinea under WARCIP 1-B
discussed and approved by the Board on June 21, 2011). The ACE consortium agreed
also to install a Branching Unit off the coast of Tenerife, Benin and Cameroon. The
submarine cable has been laid in international and territorial waters between June and
December 2011, starting with the segment France/Senegal, followed by
Senegal/Ivory Coast and finally Ivory Coast/STP (serving Gabon). In each country, a
landing station will be built close to the shore to connect the submarine cable with
terrestrial networks. It is expected that the ACE submarine cable will be ready for
service in August / September 2012. As a party to the Construction & Maintenance
Agreement (C&MA) to ACE, the Republic if Gabon will obtain a fixed ownership
percentage and an allocated capacity (based on kilometers and branch capacity) at a
fixed price. At this point in time, it is estimated that for a single landing station, each
country will obtain approximately 2.8% of the capacity at a cost of approximately
US$25 million67
.
67
A model enables parties to the C&MA to specifically determine the payment required for consortium members
and the bandwidth capacity that will be received. While the model and the resulting payment amounts have been
finalized when the C&MA was signed by all members on June 5, 2010, there may be slight variations around the
US$25 million estimate depending on final configuration of the system and final list of ACE members.
45
Figure 8: Overview of the ACE submarine cable
NB: Discussions are currently underway to assess interest for deployment of Segment 4 (from STP to South Africa)
at a later stage.
Source : ACE
o According to the ACE Construction & Maintenance Agreement (C&MA), consortium
fees of US$25 million are to be paid in 8 installments between July 2010 and June
2012. Some of these installments have been paid by Government with own funds,
some with funds from the PIH and some using IBRD funding. So far 80% has been
paid, US$2 million of which using IBRD financing, and the Government is expecting
to cover US$4 million through retroactive financing68
(details below).
68
In accordance with OP 6.00 – Bank Financing, Retroactive financing is permitted under the following conditions
which are satisfied in this specific case: (a) the activities financed are included in the project description; (b) the
payments are for items procured in accordance with applicable Bank procurement procedures; (c) such payments do
not exceed 20 percent of the loan amount; and (d) the payments were made by the borrower not more than 12
46
Figure 9: ACE installment schedule
Parallel financing
Installment
#
Due date Total
Amount to
be paid to
ACE
(US$)
Paid by
Total
Gabon
through
PIH (US$)
Paid by
GoG with
own funds
(US$)
Paid by
GoG with
IBRD funds
(US$)
IBRD direct
payment to
ACE
(US$ )a
IBRD
retroactive
financing
(reimbursement
to GoG on past
expenses)
(US$)b
IBRD
reimbursement
to GoG under
normal
financing
(US$)c
1 July 23,
2010
3,750,000
3,750,000
2 September
23, 2010
2,500,000 1,607,821
3 December
23, 2010
1,250,000 1,250,000
4 March 23,
2011
4,000,000 4,892,179
5 July 31,
2011
4,000,000 2,000,000 2,000,000 2,000,000
6 December
22, 2011
4,500,000 1,857,821 642,179 2,000,000 2,000,000
7 February 23,
2012
3,750,000 1,357,821 2,392,179 2,392,179
Subtotal 23,750,000 10,000,000 7,357,821 6,342,179 2,000,000 4,392,179
8 June 23,
2012
1,250,000 1,250,000 1,250,000
TOTAL 25,000,000 10,000,000 7,357,821 7,642,179 2,000,000 4,392,179 1,250,000
a. WB funding would flow through a direct payment to the ACE consortium on behalf of GoG.
b. Indicative value (depends on exchange rate US$/XAF)
c. If payment is made after signing but before effectiveness, GoG will be reimbursed from loan proceeds after
effectiveness.
(ii) finance a terrestrial fiber optic link Libreville - Franceville - Bakumba – Lekoko /
Border with Congo (approx. 800 km) to interconnect with the Congolese link
Dolisie – Mbinda (already financed under CAB3 CG) and additional links such as
Lekoni - Franceville – Koulamoutou (approx. 340 km) within the first phase of roll
out of a national backbone (Estimated Cost US$40.50 million).
o While new international connectivity via ACE will provide the potential for
massively improved access to broadband communications in Gabon, the full benefits
months before the expected date of Loan Agreement signing. The date after which payments may be made is agreed
at appraisal, confirmed during negotiations, and recorded in the Loan Agreement.
47
cannot be achieved without additional investments in national backbone
infrastructure.
o The terrestrial fiber optic link Libreville - Franceville - Bakumba – Lekoko is a
crucial link of the Gabonese backbone (―dorsale nationale‖): loops to provincial
capitals and links to the borders are branching out of this Libreville – Franceville link.
o The terrestrial fiber optic link Franceville - Bakumba – Lekoko will ensure
interconnection with neighboring country with Congo to interconnect with the
Congolese link Dolisie – Mbinda financed by the Bank under CAB3 CG on the basis
of the same open access network (open to all operators) and PPP (leveraging private
sector investment) key principles.
o The terrestrial fiber optic link from Lekoni to Koulamoutou via Franceville will
enable to connect two main secondary cities (Lekoni, Koulamoutou) and start the
building of a south loop that will back up the Libreville-Franceville link, herewith
contributing to increase geographical reach and usage of broadband network services.
(iii) finance the setup of an Internet Exchange Point (IXP) and of a Carrier Hotel to
access the international and national backbone capacity (Estimated Cost $0.36
million).
o An Internet exchange point (IXP) is a physical infrastructure through which Internet
Service Providers (ISPs) and telecommunications operators exchange Internet traffic
between their networks. The primary purpose of an IXP is to allow networks to
interconnect directly, via the exchange, rather than through one or more third-party
networks. The advantages of the direct interconnection are numerous, but the primary
reasons to finance the set up of an IXP in Gabon are cost, latency, and bandwidth.
IXP typically hosts shared time servers, local DNS servers and caching servers.
o A carrier hotel, also called a collocation center, is a secure physical site or building
where data communications media converge and are interconnected. It is common for
numerous telecommunications operators and service providers to share the facilities
of a single carrier hotel. Co-location allows multiple customers to locate network,
server, and storage gear—and connect them to a variety of telecommunications and
network service providers (ensuring neutrality towards any operator or service
provider) — with a minimum of cost and complexity.
6. Component 3 - Project Management (Estimated Cost US$3.45 million). This activity
will (i) finance the carrying out of the social and environmental studies required by the ESMF,
the RPF and the IPPF monitoring and capacity building (Estimated Cost US$1.5 million), (ii)
provide support needed to strengthen the capacity of GoG to implement CAB4 GA, including
upgrading an existing Project Implementation Unit (PIU) (see Annex 3), hiring dedicated staff to
work on the project to complement existing project staff (such as technical advisor), covering
office equipment and some operating costs, trainings on Bank’s project cycle and procurement
and FM guidelines of Bank funded projects and (iii) finance audits, monitoring and evaluation
(M&E) including appropriate actions to support efficient data collection, and communication.
48
Annex 3: Implementation Arrangements
AFRICA: Central African Backbone - APL4 - Gabon Project (CAB4 GA)
1. Project institutional and implementation arrangements
1.1 Project administration mechanisms
1. The line Ministry MCPEN and the MECIT will set up a Fiber Optic Commission
that will lead the implementation of CAB4 GA. The implementation arrangement agreed
with GoG involves therefore two organizational levels: a Fiber Optic Commission and a
Project Implementation Unit. This arrangement builds upon the existing arrangement
established by GoG and TOTAL Group as any PIH funded project; it has been successfully
working during the PPA and it is now proposed for the whole CAB4 GA project. Beside savings
on project management costs, this approach will also enable a faster implementation of CAB4
GA as there will be no need to set up a new PIU.
2. The Fiber Optic Commission (Commission chargée du suivi des projets de fibre optique
au Gabon) will be in charge of providing overall technical and operative guidance, direction
and coordination during project implementation will have fiduciary and governance
oversight and will bear overall responsibility for the compliance of safeguard activities to
National and Bank policies. A draft Ministerial Decision of GoG formally establishing the
Fiber Optic Commission is under preparation and will be issued by GoG as a condition of
effectiveness of the Loan Agreement.
3. The Fiber Optic Commission will comprise of a Steering Committee (Comité de pilotage)
and of a Project Coordination Team (Direction de projet)69
. The Steering Committee will include
the Minister of MECIT, the Minister of MCPEN, the Director General of ANINF and the
President of ARCEP70
. The Steering Committee will meet at least once every quarter (or
exceptionally if so required) and will be supported, in all its functions, by a Project Coordination
Team comprising of representatives from MECIT, MCPEN, ANINF and ARCEP as well as
representatives from the Director General of Environment (DGE) in charge of social and
environmental safeguards within the MHUEDD and from the railway company SETRAG. The
Project Coordination Team will designate one of its members as the CAB4 GA focal point to
ensure smooth coordination with the Bank and the PIU and a representative of the Permanent
Secretary of CN-TIPPEE will be included in the Project Coordination Team. The CAB4 GA
focal point will be the secretary of the Steering Committee. The Permanent Secretary of CN-
TIPPEE can be invited as an observer to the Steering Committee. The main duties of the Fiber
Optic Commission will be:
69
Such a Fiber Optic Commission is to be established for any project financed by GoG using resources of the PIH. In the case of
the ACE / Libreville - Port Gentil project where funds from the PIH have been used, the Fiber Optic Commission has been set up
by Ministerial Decision n.088/MCPEN from November 21, 2010, updated by Ministerial Decision n.043/MCPEN from June 20,
2011 to include newly created ANINF alongside to MECIT, MCPEN, the Line Ministry in charge of Mining, Petrol and Oil
(MMPH) and TOTAL Gabon. 70
The GoG may consider appropriate to complement the Fiber Optic Commission with representative of other interested
institutions or authorities of the Gabonese Republic, such as the National Agency for Major Works ANGT.
49
o Provide overall policy and strategic direction, general project oversight and overall
operative guidance and coordination during implementation;
o Identifying synergies and complementarities of activities, and consistency of
activities with GoG’s ICT policy;
o Have fiduciary and governance oversight of the main disbursement areas for CAB4
GA;
o Be responsible for approving annual work plans and budgets within a time frame to
be defined in the project implementation;
o Deliberate on all realignment of project implementation activities and any changes in
allocation of budgets between components (subject to the Bank’s approval);
o Be responsible for monitoring the implementation of the M&E framework;
o Bear overall responsibility for the compliance of safeguard activities to National and
Bank policies.
4. The PIU for CAB4 GA will be an already established and experienced PIU called
CN-TIPPEE (Commission Nationale – Travaux d’Intérêt Public pour la Promotion de
l’Entreprenariat et de l’Emploi / National Commission – Labor Intensive Small-Scale Public
Infrastructure Works), which was set up in 2006 by GoG and which is already familiar with
Bank procedures71
. The CN-TIPPEE, directed by a Permanent Secretary, includes four units
respectively responsible for technical implementation, administration and finance, monitoring
and evaluation as well as information and communication. Reporting to the Fiber Optic
Commission for overall guidance, direction and coordination as well as for fiduciary and
governance oversight, the CN-TIPPEE will be responsible for project implementation, including
all fiduciary tasks such as Procurement, Financial Management, M&E, Communications and
Environmental Support. The Permanent Secretary of CN-TIPPEE can be invited as an observer
to the Steering Committee. The main duties of the PIU will be:
o Oversee CAB4 GA implementation, management and reporting;
o Prepare implementation and procurement plans together with the Project
Implementation Team;
o Prepare annual work plans and budgets for submission to the Fiber Optic Commission
for approval;
o Coordinate with the Bank on all aspects of project implementation;
o Coordinate with the Fiber Optic Commission to define the work program of the
technical advisor;
o Work with MCPEN, ANINF and ARCEP to monitor performance agreements;
o Handle for the Fiber Optic Commission all procurement and financial management
for the CAB4 GA project in compliance with the World Bank procurement guidelines
71
According to its establishing Ministerial Decision, CN-TIPPEE’s objective is to make projects which are in the
public interest on behalf of all stakeholders (GoG, Regional and local administrations, NGOs or Donors) with a view
to implement best practices and sound governance. The size of the CN-TIPPEE can vary to adjust to the project
workload, with a minimum of 6 key staff working on multiple projects.CN-TIPPEE was the PIU of the local
infrastructure development project (PDIL project – P082812) which closed December 2011. As of January 2012, CN-TIPPEE is
in charge of a project financed by GoG (Projet de création de « plateformes de services » (PFS) pour l’insertion à des activités
économiques génératrices d’emplois et de revenus dans la filière « BOIS ») as well as of the PPA of the CAB4 GA project.
Counterpart funding estimates for CAB4 GA have been made and submitted to GoG in the context of the 2012 budget discussion.
To address any possible risks of attrition of staff prior to GoG’s counterpart funding availability under its 2012 budget (which is
introduced as a legal covenant), support can be financed under the PPA, in particular for Financial Management and Procurement
activities.
50
and in the spirit of the anti-corruption legislation, including resource monitoring,
preparation of bid documents, appraisal and procurement of contracts, and contracts
management;
o Prepare quarterly consolidated financial and auditing reports to be submitted to the
World Bank on financial management and procurement arrangements, respectively;
o Prepare the disbursement plan and take responsibility for withdrawal of funds, and
payment to contractors and suppliers;
o Arrange and facilitate regular meetings with the Project Coordination Team to discuss
progress with implementation and issues of common concern;
o Prepare materials related to the project for public dissemination and coordinate
stakeholder inputs and appropriate response; and
o Provide guidance and support implementation of Environmental and Social
Safeguards via an Environment and Social Safeguards Focal Point (Point Focal
Environnemental et Social (PFES)) that will be in charge of coordinating the
implementation, the monitoring (control and audit) of social and environmental
aspects and be an interface between the project, local authorities and other
stakeholders.
5. The Government of Gabon ensures through subventions (counterpart funding) that
the CN-TIPPEE will keep its key management, technical and financial positions staffed for
the entire duration of the project to carry out its responsibilities under the project.72
The
estimation is a total of 1,008,833,053 XAF (US$2,017,666) for the 5 year period of the CAB4
GA project, which includes the staffing costs for the key positions in the PIU73
. The MECIT will
be responsible for collecting contributions from relevant institutions and will channel the
subventions to the CN TIPPEE according to the following scheduling in order to mitigate risks
of untimely availability of counterpart funding:
6. While all procurement and fiduciary activities will be centralized and carried out by CN-
TIPPEE, the beneficiary institutions MCPEN, ANINF and ARCEP will participate actively by
contributing their expertise and knowledge in preparing TORs, evaluations, participation in
selection committees, etc.
7. A technical advisor will also be hired that will work closely with the CAB4 GA focal
point within the Project Coordination Team as well as with MCPEN and ANINF to handle
the additional technical workload generated by CAB4 GA. The technical advisor will be the
secretary of the Project Coordination Team. Terms of Reference for the technical advisor have
been drafted and the Gabonese Republic through the PIU CN-TIPPEE is in the process of hiring
the technical advisor.
72
Similar implementation arrangements as for the infrastructure development project (PDIL project – P082812). 73
Permanent Secretary (coordinator), Financial & Admin. Specialist, Procurement Specialist, M&E and Safeguards Specialist.
no later than
30 June 2012
no later than
31 May 2013
no later than
31 May 2014
no later than
31 May 2015 TOTAL
XAF XAF XAF XAF XAF
235,694,379 302,392,773 302,392,773 168,353,128 1,008,833,053
51
Figure 10: CAB4 GA Implementation arrangements
1.2 Measures to address capacity constraints
8. Extensive technical assistance is being provided to promote and implement Open Access
Regime & PPP for international and for national connectivity (e.g. rules of incorporation,
reference wholesale / interconnect offer, …) through hiring legal/transaction, regulatory and
business advisors to advise GoG on negotiations with private sector operators, by financing
technical and financial audits of the structures to be setup and through workshops on Promoting
PPP investment in the telecommunications sector as well as supporting tender design and audit
of national backbone, of IXP and of a Carrier Hotel to access the international and national
connectivity. An existing PIU is being used and will be strengthened with a CAB4 technical
advisor placed to handle the additional technical workload generated by CAB4 GA at MCPEN
and ANINF. The team will monitor the staffing situation at the PIU during preparation and
implementation and advise on how to handle the additional workload generated by CAB4 GA.
Trainings will also be organized throughout project implementation for the staff of the Line
Ministry MCPEN, the ANINF and ARCEP on the Bank’s project cycle and procurement and FM
guidelines of Bank funded projects.
52
2. Financial Management, Disbursement and Procurement
2.1 Financial Management and Disbursement Arrangements
9. Overview of Project and implementing entity. The CAB4 GA project will be executed
over a five-year period with a total financing of US$58 million and will include a set of activities
grouped under three components described above. The line Ministry MCPEN and the MECIT
will set up a Fiber Optic Commission that will lead the implementation of CAB4 GA. As
described above, the implementation arrangement agreed with GoG involves two organizational
levels: a Fiber Optic Commission and a Project Implementation Unit (PIU). This arrangement
has been successfully working during the PPA and is now confirmed for the whole CAB4 GA
project. Beside savings on project management costs, this approach will also enable a faster
implementation of CAB4 GA as there will be no need to set up a new PIU.
10. Country Issues. GoG remains committed to improving Public Financial Management
(PFM) and has taken measures to improve the expenditure and payment process. It has
established an inter-ministerial task force composed of staff of the ministries of Budget and
Economy that has recently completed a review of expenditures practices and has defined
concrete measures aimed at shortening the expenditure channels and payment process. The
improvement of the efficiency of the capital expenditure is crucial as the Government has
decided to triple its investment budget. Despite all of the measures taken including the recent
PER (June 2011), Public Financial Management remains weak and lacks capacity in budgeting,
accounting, reporting, debt management, auditing and internal control systems. So far the
country risk is rated high.
11. Risk assessment and mitigation. The overall residual risk rating is deemed Moderate. Risk Risk
rating
Risk Mitigating Measures
Incorporated into Project Design
Risk after
mitigation
measures
Remarks
INHERENT RISK M M
Country level
Weak capacity in Public
Financial Management
H Use an existing PIU experienced with
WB financed projects
H
Entity level
The implementation
arrangements agreed with
GoG involves two
organizational levels: a
CAB4 GA Fiber Optic
Commission and a CAB4
GA Project Implementation
Unit.
L Rely on existing PIU CN-TIPPEE
experience to support steering
committee
L
Project level
No major risk has been
identified, for project
components are based on
similar projects in the
region.
M
Rely on other countries experience
M
53
CONTROL RISK M M
Budgeting
No risk has been identified
in PIU existing budgeting
arrangements.
L Rely on PIU existing budgeting
arrangements.
L
Accounting
No risk has been identified
in PIU existing accounting
arrangements provided that
the staffing level will not
change after the closing of
PDIL project.
L
Rely on PIU existing accounting
arrangements.
L
The accounting software has a multi
project and site version.
Internal Controls and
Internal Audit
PIU manual of procedures
does not include the new
project implementing
arrangements
S
Adopt an execution manual to reflect the
new project implementing arrangements.
S
During PPF and
prior to
negotiations
Funds Flow
Funds might be diverted,
used for non project
eligible purposes or
comingled with other
activity funds carried out
by PIU.
M Open/use a segregated Designated
Account
M
Financial Reporting
No risk has been identified
in PIU existing financial
reporting arrangements.
L Rely on PIU existing financial reporting
arrangements.
L
Since the accounting software has a
multi project and site version, the
reporting process will be eased
Auditing
No risk has been identified
in PIU existing external
auditing arrangements
besides the need to expand
the scope of the audit to
include the projects’
transactions.
L
Rely on PIU existing external auditing
arrangements but expand its scope to
include the projects’ transactions.
L
Prior or at
negotiation for
the agreement on
the use of current
external auditor.
Overall FM risk M M
12. Strengths. The PIU has an adequate track record in implementing Bank-financed
projects and is endowed with an existing fiduciary platform (accounting software, manual of
procedures, qualified staff, external audit arrangements…).
54
13. Weaknesses and Action Plan to reinforce the control environment.
Significant Weaknesses
or risks
Action Responsible
body
Completion
The current procedure
manual is not tailored to
the project needs
Adoption of project
implementation manual
CN-TIPPEE
During PPF and prior
or at negotiation
The scope of the current
external audit
arrangements does not
include the proposed
project
Amend the ToRs of the external
auditor to include the proposed
project.
CN-TIPPEE
Negotiations
14. Staffing and Training. CN-TIPPEE is already staffed with a Finance Specialist and one
accountant all well experienced in Bank-financed projects. The FM team will have the
responsibility to collect and control the invoices, maintain the books, enter the data in the
accounting software, manage project’s bank accounts, keep the books, monitor the budget and
prepare the financial reports. 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 as MCPEN,
ANINF and ARCEP, the benefits of the project are expected to last far beyond program
completion.
15. Budgeting. The function of the administrative and financial unit of CN-TIPPEE includes:
preparation and execution of the annual budget. Reliance will be placed on the PIU existing
budgeting arrangements. The activities and the breakdown of cost to be financed under the
project have been identified. Annual work plans to be approved by the Fiber Optic Commission
will clearly detail the activities and will be translated into annual budgets. The Procurement
Specialist (PS) will monitor its execution with the integrated financial software, in accordance
with the budgeting procedures specified in the manual of procedures, and will report on
variances along with the quarterly Interim Financial Reports (IFRs). Basically, the PS will
prepare the overall budgets on an annual basis. The budgeting system needs to forecast the origin
and use of funds under the project for each fiscal year. Only budgeted expenditures will be
committed and incurred so as to ensure resources are used within the agreed upon allocations and
for the intended purposes.
16. Accounting Policies and Procedures. The PIU will use its existing platform (accounting
software multi project and multi site) to maintain the books and accounts of the project activities
and ensure that the annual financial statements are produced in a timely manner in accordance
with OHADA (Organisation pour l’Harmonisation du Droit des Affaires en Afrique) accounting
55
principles – which are in line with the international accounting standards. The existing software
Tom-pro has been customized and upgraded to record the PPF and the project’s transactions and
generate accurate financial reports on time.
17. Internal Control and Internal Auditing. Internal control will build on the existing CN-
TIPPEE arrangement which comprise segregation of duties through four different units
respectively responsible for technical implementation, administration and finance, monitoring
and evaluation as well as information and communication and the monitoring and evaluation unit
will be in charge of following up internal control recommendations made by external auditor. In
addition an implementation manual specific to the project will be adopted.
18. Funds Flow and Disbursement Arrangements. One segregated Designated Account
(DA) in XAF will be opened at Banque Internationale pour le Commerce et l’Industrie du Gabon
(BICIG) and managed by the PS under the responsibility of the Project coordinator and the
financial manager. Upon effectiveness, the DA will receive an advance up the ceiling amount of
XAF 500 million, which is calculated to represent four month expenditures forecast, and will be
replenished regularly through monthly Withdrawal Applications. Withdrawal transactions from
the DA will be authorized respectively by PS head and Financial Manager. Direct payments will
be made to the ACE Consortium74
to pay a share of the Consortium fee for the Gabonese
Republic under Component 2-(i). In addition to the designated account, a Project Account will
receive counterpart funds in compliance with the terms of the Loan Agreement.
Legend: Transfers of funds Flow of documents (invoices, good receipt notes, purchase order, contract) Payment to suppliers
74
The Bank's procurement guidelines will not apply to the financing of the Consortium Fee, in line with the waiver obtained for
the previous operations under the ACE Cable (see Procurement Section below)
IBRD Loan account
PIU
Designated Account in
Commercial Bank
Services providers / PIU Operating costs
ACE Consortium
Project Account (ACCD)
Counterpart fund
56
19. Method of Disbursement. The transaction-based disbursement method will be applied at
the beginning. Once the PS demonstrates its ability to submit reliable quarterly IFRs, the project
may shift to the report based method in the second year if it sustains a satisfactory FM rating.
Other disbursement methods such as reimbursement, direct payments and special commitment
will be available to the borrower. The minimum value for Reimbursement, Direct Payment and
Special Commitment will be 20 percent of the DA ceiling. Further advances by the Bank into the
Designated Account will be made against withdrawal applications supported by appropriate
documents. Disbursement for ACE payments under Component 2-(i) will be done exclusively
through the Direct Payment method, as was the case under the Project Preparation Advance
(P4620-GB) which financed a share of the Government of Gabon’s initial contributions to the
ACE consortium. Disbursements under for construction of the fiber optic cable under
Component 2-(ii) will be made in installments linked to milestones reached at key stages of the
development of the network. Payments will be made on the basis of customized Statement of
Expenditures certified upon verification of an Independent Engineer as to the achievement of the
milestones (e.g. constructed network segment) during the construction phase of the network.
The remaining project components can be done using any of the four disbursement methods
(Advance, Reimbursement, Direct Payment and Special Commitment).
20. Statement of Expenditures. Disbursements for all expenditures should be against full
documentation except for items of expenditures under contracts valued at less than: (a) $500,000
for civil works; (b) $250,000 for goods; (c) $100,000 for consultant services contracts for firms;
(d) $50,000 for consulting services awarded to individuals as well as (e) all training and
operating costs, which will be claimed on the basis of Statement of Expenditures (SOEs). All
supporting documentation for SOEs will be retained at the PS and will be readily accessible for
review by periodic Bank supervision missions and external auditors.
21. Disbursements by category. The table below sets out the expenditure categories to be
financed out of the Loan proceeds. This table takes into recognition the prevailing Country
Financing Parameter for Gabon in setting out the financing levels.
57
Category
Amount of the Loan
Allocated
(expressed in USD)
Percentage of
Expenditures to be
financed
(inclusive of Taxes)
(1) Goods, works, non-consulting
services, consultants’ services and
Operational Costs for the Project,
except works and goods under Parts
2.2 and 2.3 thereof
8,500,000
100%
(2) Consortium Fee:
(a) Due December 22, 2011
(b) Due February 23, 2012
(c) Due June 23, 2012
2,000,000
2,392,179
1,250,000
44%
64%
100%
(3) Goods and works under Parts 2.2
and 2.3 of the Project
40,857,821
100%
4) Refund of the Preparation
Advance No. P4620-GB
3,000,000
Amount payable pursuant
to Section 2.07 (a) of the
General Conditions
TOTAL AMOUNT 58,000,000
22. Retroactive financing. GoG is requesting refinancing for two payments for a total of
US$4.4 million. In accordance with OP 6.00 – Bank Financing, Retroactive financing is
permitted under the following conditions which are satisfied in this specific case: (a) the
activities financed are included in the project description; (b) such payments do not exceed 20
percent of the loan amount; and (c) the payments were made by the borrower not more than 12
months before the expected date of Loan Agreement signing.
o The first payment amounts to US$2.0 million. The conditions of OP 6.00 are fulfilled
because: (a) the activities financed are a share of ACE Consortium fee under
Component 2-(i) of the project; (b) the payment amounts to 1% of the loan amount;
and (c) the payment was made on 1 December 2011, i.e. less than 5 months before the
expected date of Loan Agreement signing (which is 22 April 2012).
o The second payment amounts US$2.4 million and is approved by FY12 Finance Law.
The conditions of OP 6.00 are fulfilled because: (a) the activities financed are a share
of ACE Consortium fee under Component 2-(i) of the project; (b) the payment
amounts to 1% of the loan amount; and (c) the payment is expected to be made before
22 April 2012, i.e. the expected date of Loan Agreement signing.
23. Refinancing date of the PPA. The refinancing date of the PPA was March 1, 2012. An
extension to June 30, 2012 has been approved on February 28, 2012.
24. IBRD Flexible Loan choice. GoG confirmed its preferences for the IBRD Flexible Loan
given the Government’s debt policy and the nature of the investment (fiber optic cable). These
preferences are as follows:
58
Spread over LIBOR Fixed Spread
Repayment terms Payment dates: May 1st and November 1st
Grace period: 6 years
Total repayment period (including Grace period) : 18 years
Repayment schedule linked to disbursement
Amortization profile: level repayment
Front-end fee Paid upfront from own resources
Options Currency conversation ; Interest rate conversion
25. Financial Reporting and Monitoring. The existing reporting arrangements (used with
PDIL) will be maintained, whereby IFR will be submitted by the PIU to IBRD within one (1)
month after the end of each calendar quarter. The current content and format of the IFR will
continue to be used. The IFR will comprise the sources and use of funds and the detailed
expenditures by component under the same format used under the PDIL project, taken into
account lessons learned and improvement proposed during the different supervision missions. At
the end of each fiscal year, the project will prepare annual financial statement. The financial
management indicators for the project are the following: (i) part of the budget disbursed every
year at the level of each component of the project; (ii) nature of the opinion from the external
59
auditor on the annual financial statements; (iii) number of internal control major weaknesses
identified by the internal and the external auditors; (iv); and rating of FM overall control risk.
26. Auditing. The annual financial statements prepared by the PS as well as internal control
system applied will be subject to an annual audit using the existing auditing arrangements. To
this end, the scope contract of the current auditor will be amended. The auditor will provide one
single opinion on the annual financial statements in compliance with IFAC Standards on
Auditing. In addition to the audit reports, the external auditors will be expected to prepare a
Management Letter giving observations, comments, and providing recommendations for
improvements in accounting records, systems, controls and compliance with financial covenants
in the Financing agreement. The project will be required to produce, no later than six month of
the following fiscal year, audited annual financial statements.
27. Conditionalities. For effectiveness: Adopt the implementation manual of procedures.
28. Implementation support plans. FM implementation support mission will be consistent
with a risk-based approach, and will involve a collaborative approach with the entire Task Team
(including procurement). A first implementation support mission will be performed six months
after the project effectiveness. Afterwards, the missions will be scheduled by using the AFTFM
risk based approach model and will include the following diligences: (i) monitoring of the
financial management arrangements during the supervision process at intervals determined by
the risk rating assigned to the overall FM Assessment at entry and subsequently during
Implementation (ISR); (ii) review the IFRs; (iii) review the audit reports and management letters
from the external auditors and follow-up on material accountability issues by engaging with the
task team leader, Client, and/or Auditors; the quality of the audit also is to be monitored closely
to ensure that it covers all relevant aspects and provide enough confidence on the appropriate use
of funds by recipients; and, (iv) physical supervision on the ground specially for the matching
grant scheme; and (v) assistance to build or maintain appropriate financial management capacity.
29. Conclusions of the FM assessment. The overall FM risk is considered Moderate
since the implementing agency is an existing and adequately-performing PIU endowed with
all fiduciary requirements. The proposed financial management arrangements for this
project are considered adequate to meet the Bank’s minimum fiduciary requirements
under OP/BP10.02. The assessment recommended among other measures (i) the adoption of the
Project Implementation Manual; (ii) the amendment of contract of the current external auditor.
2.2 Procurement
General
30. Use of Bank Guidelines: Procurement for the proposed Project would be carried out in
accordance with the World Bank’s ―Guidelines: Procurement of Goods, Works and Non-
60
consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers‖
dated January 2011 and ―Guidelines: Selection and Employment of Consultants under IBRD
Loans and IDA Credits and Grants by World Bank Borrowers‖ dated January 2011 and the
provisions stipulated in the Legal Agreement. The Bank's procurement guidelines will not apply
to the financing of the ACE Consortium Fee, which is not a procurable item, in line with the
waiver obtained for the previous operations under the ACE Cable. The anti-corruption guidelines
that will apply will be the "Guidelines on Preventing and Combating Fraud and Corruption in
Projects Financed by IBRD Loans and IDA Credits and Grants‖, dated October 15, 2006 and
revised in January 2011."
31. Advertising: A General Procurement Notice (GPN) will be prepared and published in
United Nations Development Business (UNDB), in Development Gateway’s (dgMarket) and in
at least one national newspaper after the project is approved by the Bank. The GPN will show
all International Competitive Biddings (ICB) for works and goods contracts and all international
consulting services. Specific procurement Notices (SPN) for all goods and works to be procured
under ICB and Expressions of Interest (EOI) for all consulting services to cost the equivalent of
US$200,000 and above would also be published in the UNDB, dgMarket, as well as in the
national press.
32. Procurement methods and Prior reviews: procurement methods and Prior-review
thresholds for the project are indicated in table below.
Expenditure
Category
Contract value
Threshold (US$)
Procurement
method
Contract Subject to
Prior Review
1. Works
>=5,000,000
< 5,000,000
< 250,000
ICB
NCB
Three quotations
All
Post review except>
800,000
None (Post Review)
2. Goods >= 500,000
< 500,000
< 100,000
ICB
NCB
Shopping
All
None, except first 3
contracts
None (Post Review)
3. Services
a. Firms
>= 200,000
< 200,000
QCBS
CQ, Other
Single Source
Selection
All
None (Post Review),
except first 3
contracts and all
contracts for audit)
All
b. Individuals >= 100,000
< 100,000
IC
IC
Single Source
Selection
All
None (Post Review)
All
61
Details of the procurement arrangements and Schedule for Goods and Works and
consulting services
33. (1) Goods, works, and non-consulting services.
1 2 3 4 5 6 7 8 9
Ref.
No.
Description of
Assignment
Estimated
Cost (US$)
1$ = 500
FCFA
Selection
Method
Pre
qualification
(yes/no)
Domestic
preference
(yes/no)
Review by
Bank
(Prior/Post)
Expected
Bids
Opening
Data
Comments
1 Works - terrestrial
fiber optic link
Libreville -
Franceville -
Bakumba –
Lekoko / Border
with Congo
(approx. 800 km)
and of a Carrier
Hotel to access the
international and
national backbone
capacity and
additional links
such as a terrestrial
fiber optic link
from Lekoni to
Koulamoutou via
Franceville (approx. 340 km)
48, 500,000 ICB Yes no Prior 31 Dec.
2012
2 Goods - setup of
an Internet
Exchange Point (IXP)
357,821 NCB No no Prior
31
March
2013
3 Goods - Office
supply 40,000 Shopping No no Post
15 Aug.
2012
4 Non-consulting
services - Internet and Phone
55,000 Shopping No no Post 15 Aug.
2012
5 Goods - Software
for fiduciary management
30,000 Single
Source No no Post
30 July
2012
6 Goods - IT and
telecoms equipments
70,000 Shopping No no Post 30 Aug.
2012
7 Goods - Car for
technical advisor 75,000 Shopping No no Prior
30 Aug.
2012
8 Goods -
Equipment for ―.ga‖ domain name
100,000 NCB No no Prior
31
March
2013
62
34. (2) Consulting services.
1 2 3 4 5 6 7 Ref.
No.
Description of
Assignment
Estimated
Cost (US$)
1$ = 500
FCFA
Selection
Method Review by
Bank
(Prior/Post)
Expected
Proposals
Submission
Date
Comments
1
Technical Assistance to promote
and implement Open Access
Regime & PPP for international
and for national connectivity
including transaction/legal,
regulatory and economic/financial
support
600,000 QCBS
Prior
15 Oct. 2012
2 Technical Assistance to support
tender design and evaluation of
national backbone, of IXP and of
a Carrier Hotel to access the
international and national
connectivity
135,000 Single
Source Prior
30 June
2012
Depending on
performance
of consultant
under the
PPA, same
consultant
could be
considered to
do follow up
work
3 Technical Assistance for the
review, improvement and
development of (i) the telecoms
and (ii) the information laws
(cyber-security, privacy, etc)
900, 000 QCBS Prior 30 Nov.
2012
4 Study on key regulatory tools for
broadband market and action plan 400,000
QCBS Prior 30 Sept.
2012
5 Development of cost models for
interconnection (fixed and
mobile) and for broadband
wholesale offers including facility
sharing
600,000 QCBS Prior 31 Nov.
2013
6
Study on broadband stimulation
strategies, including in rural areas
(universal access), and action plan 400,000 QCBS Prior
30 Nov.
2012
63
7
Study on international best
practice with digital dividend and
recommendations for Gabon to
reap the broadband benefits
300,000 QCBS Prior 30 Nov.
2013
8 Feasibility study to set up an
Internet Exchange Point (IXP) 200,000 CQ Prior 15 Oct. 2012
9 Technical assistance to design
management policy for ―.ga‖
domain name
250,000
CQ Prior
30 March
2013
10
Technical assistance to MCPEN
and GoG to on e-government
strategy and action plan to
leverage new connectivity
500,000 QCBS Prior To be
determined
11
Environmental and Social
Assessment including an ESMP,
and a RAP or Abbreviated RAP 100,000
Single
Source Prior
To be
determined
Depending on
performance
of consultant
under the
PPA, same
consultant
could be
considered to
do follow up
work
12
Indigenous Peoples Plan (IPP) 100,000 Single
Source Prior
To be
determined
Depending on
performance of
consultant under
the PPA, same
consultant could
be considered to
do follow up
work
13 Technical advisor
500,000
IC Prior 15 Aug.
2012
14 IT Staff 170,000
IC Prior 15 Aug.
2012
15
Monitoring and Evaluation
Survey 250,000 CQ Prior
30 Nov.
2013
16
Audit 90, 000 Single
Source Prior 6 Feb. 2012
Action Plan to
reinforce the
control
environment:
CN-TIPPEE to
sign contract
with existing
PDIL auditor to
extend its use
to the CAB4
Project
17 Technical assistance to set up the
contractual relations with
SETRAG 200,000 CQ Prior
15 Aug.
2012
64
Short lists comprising entirely national consultants. The short list may comprise entirely national
consultants (firms registered or incorporated in the country) if the assignment is below the
ceiling of US$100,000 per contract, in accordance with para 2.7 of the Guidelines for Selection
and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank
Borrowers.
35. (3) Training, workshops, seminars and conference. The expenditure of these activities
will be carried out on the basis of approved annual programs.
36. Procurement capacity assessment. A procurement capacity assessment of the
Implementation Unit (CN-TIPPEE) was carried out during the pre-appraisal mission in
November 2011. The assessment did not reveal any anomaly in the functioning of CN-TIPPEE.
The CN-TIPPEE satisfactorily carried out all the preparatory studies and activities under Project
preparation Advance for the project. Several post procurement reviews carried out in the CN-
TIPPEE were satisfactory. The staff in the Implementation Unit includes a procurement
specialist who has procurement experience at both national and international levels (including
World Bank experience).
37. Strengthening of procurement capacities. The assessment did not reveal any anomaly
within the procurement unit of the project Implementation Unit, except for the need of training in
the use of procurement monitoring and management programs and the need to involve staff from
beneficiary institutions (MCPEN, ANINF, ARCEP, etc) in all procurement procedure and more
particularly in preparing the technical specifications and terms of references and participation in
selection committees. Under the project, the procurement specialist as well as staff from
beneficiary institutions will benefit from procurement training organized by specialized regional
procurement training centers or at the Bank’s country office in Gabon. The following is a
schedule of actions to be carried out for the strengthening of procurement capacities in the
Project Implementation Unit:
Action to be undertaken Dates Responsible Institution Training in the use of procurement
monitoring and management programs After Loan
effectiveness Project Implementation Unit
Participation for the procurement
specialists and staff from MCPEN,
ANINF and ARCEP in procurement
workshops at the specialized regional
procurement training centers
After Loan
effectiveness Project Implementation Unit
Involvement of Staff from MCPEN,
ANINF and ARCEP in the Procurement
Committee
Before Negotiations Project Implementation Unit
38. Procurement plan. The Recipient, at pre-appraisal in November 2011, has prepared a
simplified procurement plan for project implementation that provides the basis for the
procurement methods. This plan covering the first 18 months of project implementation has been
reviewed and agreed between the Recipient and the project team during the pre-appraisal
mission. A revised detailed version was submitted to the Bank during appraisal, reviewed and
65
agreed between the Recipient and the project team on February 13, 2012. It will be updated in
agreement with the project team at least once a year reflecting the proposed activities for the
following 18 months of project implementation as required to reflect the actual project
implementation needs and improvements in institutional capacity. It will also be available in the
project’s database and in the Bank’s external website once the Loan is approved by Bank Board
of Directors.
39. Frequency of procurement supervision. In addition to the prior review supervision to
be carried out from Bank offices, the Recipient and the Bank team have agreed to at least three
missions per year for the first two years of project implementation to minimize the risk of failing
to follow procurement procedures as well as for supervision of project activities. The Recipient
and the Bank have also agreed to two supervision field visits to carry out post-review of
procurement activities.
3. Environmental and Social Safeguards
40. From an environmental and social safeguard standpoint, the CAB4 GA project is a
Category B project. That is, the environmental and social impacts of the project, for the most
part, are expected to be minimal, site-specific and manageable to an acceptable level. There are
five Bank Safeguard policies triggered under the project. These include: Environmental
Assessment (OP 4.01); Natural Habitats (OP 4.04); Indigenous Peoples Policy (OP 4.10);
Physical Cultural Resource (OP 4.11) and Involuntary Resettlement (OP 4.12).
Figure 11: CAB4 GA overview of triggered Bank safeguard policies
Bank Safeguard policies International connectivity via
the ACE submarine cable
landing in Libreville
National backbone connectivity
(Phase I) via a terrestrial fiber
optic link
Environmental Assessment
(OP 4.01) YES YES
Natural Habitats (OP 4.04) YES YES
Indigenous Peoples Policy
(OP 4.10) NO YES
Physical Cultural Resource
(OP 4.11) YES YES
Involuntary Resettlement (OP
4.12) YES YES
41. The project is expected to have positive social benefits - including increased possibility
of better access to ICT services for the population and improved government service delivery.
Improved quality and reduced costs of communications lower the cost of doing business and
weaken the effects of insularity, improving access to markets. Several ICT applications are being
developed in recent years and in different countries in the region which bring other sectoral
improvements through ICT platforms. Examples are access to financial services through mobile
banking, improvements on farmer’s livelihoods through increased information on agricultural
techniques and crop prices, and positive impacts on education through access to eLearning
66
programs. More generally, the project will (i) enable ICT to become a driver for sustainable
economic growth; (ii) set the basis for enabling the Government to use ICT to provide
decentralized services; (iii) improve access and quality of ICT services for the population,
businesses, and the Government; (iv) reduce isolation and enhance economic activities in rural
areas; and (v) create additional opportunities for women entrepreneurs to own ICT-related
SMEs.
42. Despite these expected positive social benefits, implementation of an effective
connectivity system sometimes result in adverse impacts on the bio-physical, socioeconomic and
cultural environments, if proper mitigation measures are not in place.
3.1. International connectivity via the ACE submarine cable landing in Libreville
43. The ACE submarine cable system has a submerged or ―wet plant‖ part, and a ―dry plant‖
part which starts where the submarine cable makes landfall and terminates at the Landing
Station, which is the physical site at which the submarine cable connects into the land-based
infrastructure or network.
“Wet plant” part
44. The ―wet plant‖ part of the ACE submarine cable comprises a Deep Sea75
portion and a
Shallow Water portion. Sections of the cable lie within the territorial waters of the landing
parties while remaining sections lie in international waters. According to the 1982 United
Nations Convention on the Law of the Sea (UNCLOS), of which Gabon is signatory,
international waters start 12 nautical miles from the coast. Beyond the 12 nautical mile limit,
there is a further 12 or 24 nautical miles from the territorial sea, a contiguous zone, in which a
State could continue to enforce laws on pollution, taxation, customs and immigration. UNCLOS
further provides for exclusive economic zones which could extend from the edge of the territorial
sea out to 200 nautical miles. In the exclusive economic zones, States have no sovereign rights
but can enforce laws on pollution, taxation, customs and immigration. Within their territorial
waters, on the other hand, States have sovereign rights. Foreign nations have the freedom of
laying submarine pipes and cables in the exclusive economic zones. The seaward limit of
coverage for the environmental and social studies for CAB4 GA is the seaward limit of the
exclusive economic zone of Gabon, defined as extending 200 nautical miles (370 km) from the
shorelines. It is possible, depending on the topology of the country that the 12 nautical miles of
the territorial waters straddles between Deep Sea and Shallow Water.
75
Deep Sea is mainly a technical term with no precise definition used to describe zones/areas beyond which cable
burial is not required (mainly because threats to the cable from trawling activities are non-existent) which starts
usually after 1000/1500 meters depth. While the main cables are to be placed in non-territorial, deep sea locations,
OP 7.50, Projects on International Waterways, does not apply. The types of waterways covered under the policy do
not contemplate an ―open sea.‖ For purposes of the policy, international waterways include semi-enclosed coastal
waters, closed seas, national rivers flowing into those waters, and transboundary groundwater. It should be noted
that the definition of international waterways under the policy is at variance with the definitions under the rules
established by the Institut de Droit and the International Law Association, as well as the United Nations Convention
on the Law of the Non-Navigational Uses of International Waters Watercourses.
67
Deep Sea portion.
45. Deep ocean fiber optic cables are no larger than 17-21 mm diameter – about the size of a
domestic garden hose - and are laid mainly upon the surface of the ocean floor (―surface laid‖).
After the signing of the Supplier Contract, Alcatel-Lucent conducted a cable route study to refine
the initial route (Cable Route Estimate) and corridor taking into account seabed contours,
volcanoes, environmentally sensitive areas (i.e. conservation areas, coral reefs0, oil exploration
zones and fisheries, etc., along the route and included visits to the possible landing
countries/sites (including the Gabonese Republic) to discuss environmentally sensitive areas,
requirements for permits, fisheries, etc. Information obtained during this period was instrumental
in determining an optimal route of the cable system which reflects these discussions. Alcatel-
Lucent has followed up the preliminary survey with a more detailed survey (called ―Marine
Survey‖) of the seabed to fine-tune the cable route which has been based on confirmed landing
sites (Libreville in the case of Gabon was surveyed in December 2010) and has provided more
information on the level of the bottom trawl fishing and shipping activities (closer to the shore),
and deep sea activities, including oil drilling. Main findings of these surveys have been made
available to the World Bank by GoG.
46. Most of the larger companies operating in the submarine cable industry typically work to
standards and quality management systems set by the International Organization for Standards
under the ISO 9000 and ISO 9001 schemes. Furthermore, the International Cable Protection
Committee (ICPC) publishes recommendations on key issues such as cable routing, cable
protection and cable recovery that are available to anyone on request. This very stringent
standard puts pressure on cable companies to adhere to strict environmental standards. The
general experience is that there are no significant environmental issues concerning submarine
cables in the deep sea, and in particular the section of the submarine cable that lies in the deep
sea has minimal impact of marine mammals and fish. The threat of whale entanglements has
diminished significantly with improvements since 1956 in the design of the cable and in the
precision with which they can be laid in close conformity with the seabed profile, and without
loops and twists.
47. The extensive studies that take place prior to final cable laying tend to work as effective
safeguards against any possible environmental disruption, since in large part they are intended to
identify routes for the submarine cable that will avoid seamounts, volcanoes, canyons, vents,
seeps, deepwater reefs, dissected terrain – all areas that tend to be associated with higher
biological value than the general abyssal plain.
48. Because much of the deep ocean lie beyond national jurisdictions, few Environmental
Impact Assessments (EIAs) for marine activities have been undertaken in this zone and thus
there is little evidence of any environmental issues, except in the case of oil and gas exploration
and very deep sea trawling. No specific environmental studies are undertaken for submarine
cables; rather the detailed Cable Route Survey (called ―Marine Survey‖) effectively services this
purpose. At the surface, pollution of the high seas oil and wastes discharged from vessels laying
68
the submarine cable can be effectively controlled if those vessels observe compliance with
maritime conventions such as MARPOL76
.
Shallow Water portion.
49. As the submarine cable gets closer to the shores in water depths lower than 1,500 m, the
cable’s diameter may increase to about 40-50 mm due to the need to add protective wire
armoring. It may also be necessary to bury the cable to protect it. There may be some temporary
low to moderate and social impacts including localized (because the duration of cable-laying
operations is usually no more than a few days) impacts to near shore marine life and local
fishermen access.
“Dry plant” part
50. The Landing station is located near to the seashore at Libreville and consists primarily of
a building, power feed and a power grounding (earthing) system. The building has 150 square
meters in size with approximately half of this space for equipment and the balance for
maintenance, training and office spaces.
Safeguard instruments prepared for the “Wet plant” and the “Dry plant” parts
51. According to the ACE C&MA, the Gabonese Republic has to provide the ―wet plant‖
part situated within its territorial waters and the ―dry plant‖ part in due time so as to meet the
contractual Ready For Provisional Acceptance date stipulated in the contract with the supplier of
the submarine cable (Alcatel Lucent, chosen after international tender by the ACE Consortium).
The ―wet plant‖ part is realized by the supplier of the submarine cable whilst the ―dry plant‖ part
is realized by suppliers chosen by GoG after competitive tender and according to technical
specifications set by the ACE consortium.
52. To implement the project in Gabon, GoG has set up by Ministerial Decision
n.088/MCPEN from November 21, 2010 a Fiber Optic Commission (Commission chargée du
suivi des projets de fibre optique au Gabon: Projet international Africa Coast to Europe (ACE)
et Projet LBV-POG) with MECIT, MCPEN, the Line Ministry in charge of Mining, Petrol and
Oil (MMPH) and TOTAL Gabon77
. This is going to evolve into what is described in paragraph
40 of the main body of this document, with the issuance of a new ministerial decision for
effectiveness. Such a Fiber Optic Commission is to be established for any project financed by
GoG using resources of the PIH. After competitive tender, GoG has chosen the consultancy firm
AQEST, a renowned expert company in submarine cable business, to assist the Fiber Optic
Commission in the technical project management and ensure, with respect to the ACE project,
that the ―wet plant‖ part situated within its territorial waters and the ―dry plant‖ part are built
according to technical specifications defined by the ACE Consortium.
76
The International Convention for the Prevention of Pollution from Ships (MARPOL) is the main international
convention covering prevention of pollution of the marine environment by ships from operational or accidental
causes. It is a combination of two treaties adopted in 1973 and 1978 respectively and also includes the Protocol of
1997 (Annex VI). It has been updated by amendments through the years. 77
Updated by Ministerial Decision n.043/MCPEN from June 20, 2011 to include newly created ANINF.
69
53. As the Marine Survey has been performed, the final site of the landing station is known
and the specific civil works identified, GoG has prepared and consulted upon an Environmental
and Social Impact Assessment (ESIA), an Environmental and Social Management Plan (ESMP)
and an Abbreviated Resettlement Action Plan (ARAP) for the cable and any associated
equipment that will be laid from the junction with the main cable through territorial waters and
onto the national shores to the landing station in Libreville.
54. The ESIA indicates the following overall moderate to low negative environmental and
social impacts:
Figure 12: CAB4 GA ACE component – summary of negative environmental and social impacts
Phase Environmental Negative Impacts
Construction
phase
Impacts on air quality through temporary and local deterioration of the
air quality;
Risk of coastal erosion at the beach of la Sablière;
Risk of change in soil structure and erosion risks along the route of the
project;
Potential impacts on flora (minor);
Disturbance of natural habitats in the marine environment;
Impact on the marine environment and risks of pollution of marine
waters
Environmental pollution by discharges of waste from the work
Work in the marine environment:
Increased turbidity of water, thus increasing the suspended
sediments.
Pollution of the environment and marine waters by waste from work
disturbance of the seabed during the burial of the cable, and
therefore the marine habitats of benthic species
Operations
phase Risk of pollution of the of marine environment during the maintenance of
the cable
70
Phase Social Negative Impacts
Construction
phase
Risk of disruption of economic activities along the Rights Of Way
Interference/obstruction of traffic during the construction of the trenches
Risk of accidents at work (bad signs of excavation)
No use of local labour
Loss of income for people along the route
Loss of property for horticulturists settled along the route
Disruption of mobility in the project area
Undermining of livelihoods
Risk of social conflicts in case local labour is not used
Risk of spread of STIs/HIV/AIDS among the populations and the
workers
Operations
phase
Risks of theft, looting and sabotage, breaking into the sites
Risk of disruption during the maintenance of the network
Source: ESIA
55. The ARAP indicates that number of Project-Affected People (PAPs) is 13, as the project
has negative impacts on the living environment, mobility and livelihoods of some people located
along the road between the shore and the landing station.
56. The safeguards documents have been disclosed by GoG to the Bank when works had
started and were at an advanced stage. The Fiber Optic Commission provided to the Bank an
official statement on its observance of the mitigation measures defined in the ESIA. The Bank
requested GoG to stop works until final versions of ESIA, ESMP and ARAP (taking into
comments by the Bank’s environmental and social safeguards team) were cleared by the Bank.
Clearance was given on December 29, 2011. Submission for public disclosure in the Bank
InfoShop has been made on January 4, 2012 and documents were disclosed publicly in local
language in the country on January 31, 2012.
57. An Environmental Audit was conducted in Gabon from January 13 to 18, 2012 and
ascertains that there are no outstanding issues with works under the ACE components. The
opinion of the mission is summarized as follows: ―The mission has visited the ACE site and
contacted and discussed with all entities that are involved in this ACE project. All entities were
unanimous that this investment is key in the context of the development of a country such as
Gabon. We noted that all structures in charge to implement and to follow up environmental and
social mitigation measures are in place with mandates supported by legal texts. Nevertheless,
flow of information and coordination between the aforementioned entities are weak. The mission
noted that all works done consisting of the laying and connection of the submarine cable to the
landing station is completed as well as the filling of holes along the cable route. They were
performed according to the technical specifications in contract execution. So far, no adverse
environmental impacts and complaints have been recorded. However, the cleaning of campsite
located at the first section cable landing and the rehabilitation of pathways and road sections
crossed by the cable need to be undertaken. To this end, public and road users have to be
informed sufficiently in advance before and during works. In addition, putting in place long term
protection and follow up measures of the use of the two back street sections respectively located
71
at la Sablière and Angonje is strongly recommended. As the ESMP has already been approved
by the Bank, disclosed at the Infoshop and disclosed in country, the steering committee and the
PIU are required to take action in completing the remaining works in compliance with the
environment safeguards underlined in the contract execution and developed in the ESMP.
58. The estimated costs of the environmental and social impacts mitigation measures
are (i) 45,000,000 XAF (US$90,000) in the construction phase (ii) and 15,000,000 XAF
(US$30,000) per year in the operational phase. Relevant provisions of the safeguard
documents (ESIA, ESMP, ARAP) have been included in the Project Implementation Manual.
3.2 National backbone connectivity (Phase I) via a terrestrial fiber optic link
59. The terrestrial fiber optic link is expected to follow major railway tracks78
or roads
already in place, including in or near a national park (Lope Reserve). In line with the triggering
of the five operational policies cited above and because of the lack of site-specific information
about the environmental and social characteristics of future investments, GoG has prepared and
consulted upon 3 safeguards instruments, namely and Environmental and Social Management
Framework (ESMF), a Resettlement Policy Framework (RPF) and an Indigenous People
Planning Framework (IPPF).
60. The ESMF confirms that there is no territorial dispute affecting the project area in the
border with Congo for the purposes of OP/BP 6.60.
61. Negative environmental and social impacts of the project come mainly from the laying of
the fiber (excavation and crossing human settlements, fields, forests, rivers, etc.). The negative
environmental impacts of the project resulting from the work will mainly concern: soil erosion
(due to the unstable nature of soils), the risks of water pollution and degradation, loss of
vegetation due to deforestation to clear the right-of-way, risks of pollution and degradation of
rivers, etc. The significant negative social impacts will mainly concern the acquisition of land for
the construction of infrastructure, the disruption of life setting, the occupation of private lands,
the possible destruction of crops, the deforestation of woodlands, the risk of encroachment on
areas of indigenous peoples and the sacred forests, the risk of disruption of cultural areas during
the excavation, the risks of accidents during the work, the risks of disruption of networks of
dealers (water, telephone, electricity), etc.
62. The ESMF outlines: (i) Mitigation of impacts of the fiber laying, 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 National Project Coordination); (iv) Strengthening
78
The exact nature and location of investments is not yet defined. The path along the railway track between
Libreville and Franceville (Transgabonais) appears to be the most probable option as significant rebuilding works
are needed but not fully scheduled for the national road (RN1) between Libreville and Franceville. It is not best
practice to lay fibers alongside roads where significant works are expected in the future because of the risks of the
fiber being damaged. Nevertheless the railway track is currently a single track and should be at some stage become a
dual track. Agreement will therefore have to be made with the railway company to define appropriate future proof
specifications for laying the fiber alongside the railway track.
72
technical measures (Provision for the implementation of Environmental Impact Assessments);
Monitoring and Evaluation of the CAB4 GA activities; (v) Informing stakeholders involved in
the implementation of the CAB4 GA and public awareness; (vi) A program of surveillance and
monitoring; (vii) institutional responsibilities for environmental monitoring; (viii) The
institutional arrangements for implementing the CAB4 GA ESMF; (ix) The recommendations
for implementation; (x) The timing for the implementation of measures; and (xi) Costs of
environmental and social measures. The total cost of activities is estimated at 220,000,000 XAF
(US$440,000).
63. The RPF estimates that, all in all, the implementation of the CAB4 GA project is likely to
cause the following potential impacts: (i) Impact on land: permanent acquisition of the land
required for the facilities; (ii) Impact on buildings and other structures: loss of habitat or
buildings, reduction of farmland following the realization of basic socio-economic infrastructure;
(iii) Impact on livelihoods and incomes: damage to persons, including loss of land, of shelters
and stores or other communal properties. The accurate estimate of the number of people who will
be affected is not feasible at this stage of the study. However, a rough estimate could be made
according to the planned route. Thus, for the whole railway route, the number of people likely to
be affected by the implementation of fiber optic cable is estimated at 250, while along the
terrestrial road the number is 200. Land requirements are estimated at 100 ha for the railway line
and 80 ha for the terrestrial road. All in all, the overall cost of resettlement can be estimated at
170,000,000 XAF (US$340,000), based on estimates of affected populations and areas required
for the implementation of projects.
64. The IPPF indicates that the interviews with these different categories of Indigenous
People players (wise men, women, and youth) show that the Project meets a massive support.
This can be justified by the fact that after having explained the purpose of the project, the players
interviewed understood how this can be brought to the indirect beneficiaries (Note that many
young people in the villages visited are already using mobile phones and have an idea of the
Internet). However, Indigenous People players expressed their concerns about certain realities
about their lives and are likely to be marginalized by the future potential of Gabon to create
additional jobs, increase production of various goods and services and to develop a trading
system competitive with the rest of the world. In short, these concerns are: (i) Access to basic
social services such as water, electricity, health facilities; (ii) Access to electricity, prior to
access to ICT (concerns of the four villages); (iii) Access to birth (especially for the village
Ntsati / Ndingui located 39 kms from Lastourville where children go to school without a birth
certificate and therefore can enter the contest entry into 6th); and (iv) the inclusion of Indigenous
People in the probability of hiring a workforce for the construction or maintenance by the
project. The IPPF outlines capacity building and infrastructure building mitigation measures,
including: (i) consultations with and participation by Indigenous Peoples in project activities; (ii)
advocacy and information for parents about the benefits of registering births (Establishment of
birth certificates for children pygmies and identity cards for the PA target villages); (ii) selection
and implementation structures of literacy or mass education in the villages of Indigenous People
(Support to functional literacy); and (iii) staffing of the four villages in sets of 16 KVA in order
to feed from 40 to 50 households and Action for the promotion of ICTs for young indigenous
people in four villages situated along the main road Franceville-Lastourville. The total cost of
activities is estimated at 290,000,000 XAF (US$580,000).
73
65. All three safeguard documents for national backbone connectivity were submitted in draft
version to the Bank on December 27, 2011 and comments have been provided by the Bank’s
environmental and social safeguards team on January 4, 2012. Final versions have been cleared
by the Bank on January 23, 2012 for ESMF and on January 25, 2012 for IPPF. All documents
have been subsequently disclosed publicly in the country on January 31, 2012 as well as in the
Bank InfoShop. Relevant provisions of the safeguard documents (ESMF, RPF, IPPF) have been
included in the Project Implementation Manual.
66. Once the final path for the terrestrial fiber foreseen alongside existing railway tracks and
roads and the final location of the associated technical sites are chosen and the specific civil
works identified, GoG will prepare an Environmental and Social Management Plan (ESMP) as
well as a Resettlement Action Plan (RAP) or an Abbreviated RAP whichever will be appropriate
and an Indigenous Peoples Plan (IPP). These safeguard documents will be prepared as part of
project implementation but before the fiber optic link is laid. Key stakeholders for consultation
will include current inhabitants (where applicable), the Line Ministry in charge of Ecology and
Sustainable Development)79
, businesses and civil society.
3.3 Arrangements for environmental and social safeguards supervision
67. The Fiber Optic Commission, in which the Line Ministry in charge of Ecology and
Sustainable Development is being represented, will bear overall responsibility for the
compliance of safeguard activities to national and Bank policies. The supervision of
safeguards implementation for CAB4 GA will be done as part of the overall project
implementation by the PIU CN TIPPEE (on behalf of the Fiber Optic Commission) in
conjunction with the Line Ministry in charge of Ecology and Sustainable Development.
The Fiber Optic Commission will designate within the PIU CN TIPPEE an Environment and Social Safeguards Focal Point (Point Focal Environnement et Social
(PFES)) that will be in charge of coordinating the implementation, the monitoring (control
and audit) of social and environmental aspects and be an interface between the project,
local authorities and other stakeholders.
The Fiber Optic Commission will sign a Memorandum of Understanding (“protocol
d’accord”) with the Line Ministry in charge of Ecology and Sustainable Development,
which will carry out external monitoring of the implementation of environmental and social
safeguards and ensure compliance with national and Bank policies.
The Firm (Bureau d’études (EES/BE)) selected to provide Technical Assistance to support
tender design and evaluation of national backbone, of IXP and of a Carrier Hotel to access
the international and national connectivity will have amongst its key experts an
environmental and social expert.
The Firm (Bureau de Contrôle (EES/BC)) selected to provide Project Management during
the construction of Phase I of the National backbone will have amongst its key experts an
environmental and social expert.
79
Ministère de l’Habitat, de l’Urbanisme, de l’Ecologie et du Développement Durable / Direction Générale de
l’Environnement et de la Protection de la Nature.
74
68. Successful implementation of project safeguard requirements and performance
measurement requires regular monitoring and evaluation of activities to comply with national
and Bank safeguard policies. This will also help ensure that implementation of project safeguard
measures are systematically carried out all throughout the life of the project. To do so, a list of
verifiable indicators is defined in the ESIA for the ACE component and in the ESMF for the
Phase I of the National Backbone component that will be measured as part of the project global
monitoring plan. The Environmental and Social Safeguards Focal Point within the PIU will bear
the primary responsibility for collecting data supported by the environmental and social experts
mentioned above and by the Line Ministry in charge of Ecology and Sustainable Development.
69. To ensure successful implementation of the project safeguard measures, capacity of the
PIU CN TIPPEE as well as of the Line Ministry MCPEN, the ANINF and of the Line Ministry
in charge of Ecology and Sustainable Development will be strengthened throughout the project.
To ensure effective Bank supervision, the PIU CN TIPPEE will prepare and update reports on
the implementation of the safeguards instruments prepared under CAB4 GA before Bank
supervision missions (see Annex 5). World Bank supervision teams will include the
environmental and social specialists.
3.4 Financing of environmental and social safeguards
70. The funding requirement for the environmental and social safeguards is estimated
in total at US$1,672,800, with US$340,000 for the International connectivity via the ACE
submarine cable landing in Libreville and US$1,332,800 for National backbone connectivity
(Phase I) via a terrestrial fiber optic link. Bank will finance US$1,468,800 and GoG
US$204,000 (see details below).
Figure 13: CAB4 GA financing of environmental and social safeguards
International connectivity via the ACE submarine cable landing in Libreville
Funding (US$)
IBRD Counterpart TOTAL
Preparation of safeguards documents ESIA, ESMP, ARAP 100,000 0 100,000
Subtotal Preparation of safeguards
documents
100,000 0 100,000
ESMP implementation
(construction phase)
1. General civil works mitigation measures
(Mesures générales d’atténuation des
nuisances liées à l’exécution des travaux)
0 Already included in
contracts with
companies in charge
of works
2. Environmental and social conditions to be
included in Tender and Contractual
documents (Clauses environnementales et
sociales à insérer dans les DAO et les
dossiers d’exécution)
0 Already included in
contracts with
companies in charge
of works
3. Measures against pollution and nuisance
during works (Mesures de lutte contre la
pollution et les nuisances lors des travaux
(PGESE))
0 Already included in
contracts with
companies in charge
of works
75
Funding (US$)
IBRD Counterpart TOTAL 4. Compensation of people negatively
affected by the project (Mesures sociales
liées aux pertes de biens socioéconomiques)
4,000
(2,000,000 XAF)
4,000
5. Support to monitoring by Public Works,
Fisheries Directorate, Municipality (Appui au
suivi des TP, Direction des pêches, Mairie)
6,000
(3,000,000 XAF)
0
6,000
6. Rehabilitation of streets and pavements
(Mesures d’aménagement et de réhabilitation
de la voierie)
0 Already included in
contracts with
companies in charge
of works
7. Communication and information of
people, in particular in the terrestrial and
marine areas where works will take place
(Communication, information et
sensibilisation des populations, notamment
dans les quartiers et la zone marine)
10,000
(5,000,000 XAF)
0 10,000
8. Environmental monitoring (Surveillance
environnementales) 20,000
(10,000,000 XAF)
0
20,000
9. Support to environmental and social
monitoring by Line Ministry in charge of
environment (Appui au suivi
environnemental et social (DGE))
10,000
(5,000,000 XAF)
10,000
10. Development of tools to monitoring,
management and maintenance (Elaboration
d’outil de surveillance, de gestion et
maintenance)
20,000
(10,000,000 XAF)
0 20,000
11. Training of stakeholders to implement
safeguards
(Formation des acteurs clés dans le suivi de
la mise en œuvre)
20,000
(10,000,000 XAF)
20,000
Subtotal ESMP implementation
(construction phase)
86,000
(43,000,000 XAF)
4,000
(2,000,000 XAF)
90,000
(45,000,000 XAF)
ESMP implementation (operation phase)
1. Monitoring, Maintenance and
Management Plan (Plan de surveillance,
d’entretien et de gestion des ouvrages)
50,000
(5,000,000 XAF per
year; 25,000,000 in
total)
50,000
2. Communication, Information and
Awareness Plan (Plan de communication,
information et de sensibilisation)
20,000
(2,000,000 XAF per
year ; 10,000,000 in
total)
20,000
3. Provision for monitoring and evaluating
the implementation of the ESMP
(Provision pour la surveillance et le suivi de
la mise en œuvre des PGES)
30,000
(3,000,000 XAF per
year ; 15,000,000 in
total)
30,000
4. Information and Awareness in the
terrestrial and marine areas where works took
place (Information/sensibilisation dans les
quartiers et la zone marine)
50,000
(5,000,000 XAF per
year; 25,000,000 in
total)
50,000
Subtotal ESMP implementation
(operation phase)
150,000
(75,000,000 XAF)
0 150,000
(75,000,000 XAF)
TOTAL 336,000 4,000 340,000
76
National backbone connectivity (Phase I) via a terrestrial fiber optic link
Funding (US$)
IBRD Counterpart TOTAL
Preparation of safeguards
documents
ESMF, RPF 80,000 0 80,000 IPPF 40,000 40,000 ESIA, ESMP, RAP, IPPP 200,000
(100,000,000 XAF)
200,000
Subtotal Preparation of safeguards
documents
320,000 0 320,000
ESMP/IPPP/RAP implementation 1. ESMP implementation (Provision pour
la mise en œuvre des EIES) 0 100,000
(50,000,000 XAF)
100,000
2. RAP implementation (Provision pour
les besoins en terre
(déplacement/indemnisation ; démolition
et réfection de chaussées ; indemnisation
ressources économiques, forestières et
agricoles, etc.)
0 100,000
(50,000,000 XAF)
100,000
3. IPPP implementation (Provision pour
la mise en œuvre de l’IPPP) 392,800
(196,400,000 XAF)
0 392,800
Subtotal ESMP/IPPP/RAP
implementation
392,800
(196,400,000 XAF)
200,000
(100,000,000 XAF)
592,800
(296,400,000 XAF)
Monitoring and Evaluation ESMP 1. Permanent monitoring during estimated
3 year duration of works (Suivi permanent
du projet)
72,000
(36,000,000 XAF)
0 72,000
2. Institutional support to Line Ministry in
charge of environment (Appui
institutionnel à la DGE dans le suivi)
24,000
(12,000,000 XAF)
0 24,000
3. Specific support for National Park la
Lopé (Appui au suivi spécifique dans le
Parc National la Lopé)
24,000
(12,000,000 XAF)
0 24,000
4. Final evaluation (Evaluation finale) 20,000
(10,000,000 XAF)
20,000
Subtotal Monitoring and Evaluation
ESMP
140,000
(70,000,000 XAF)
0,000 140,000
(70,000,000 XAF)
Monitoring and Evaluation RAP 1. Permanent monitoring during estimated
3 year duration of works (Suivi permanent
du projet)
80,000
(40,000,000 XAF)
0 80,000
2. Final evaluation (Evaluation finale) 20,000
(10,000,000 XAF)
0 20,000
3. Capacity building (Renforcement des
capacités) 40,000
(20,000,000 XAF)
0 40,000
Subtotal Monitoring and Evaluation
RAP
140,000
(70,000,000 XAF)
0,000 140,000
(70,000,000 XAF)
77
Funding (US$)
IBRD Counterpart TOTAL
Information and Awareness 1. Workshops to share and inform on the
ESMF (Ateliers de partage et
d’information sur le CGES)
60,000
(30,000,000 XAF)
60,000
2. Information and Awareness of people
in the terrestrial areas where works will
take place (Information et Sensibilisation
des populations dans les zones du projet)
40,000
(20,000,000 XAF)
40,000
3. Awareness-raising on RAF and RAP
(coûts pour la sensibilisation sur le CPR
et les PAR)
40,000
(20,000,000 XAF)
40,000
Subtotal Information and Awareness 140,000
(70,000,000 XAF)
0,000 140,000
(70,000,000 XAF)
TOTAL 1,132,800 200,000 1,332,800
4. Monitoring and Evaluation
71. Monitoring arrangements and data collection. The PIU CN TIPPEE will monitor and
evaluate all project indicators, plus additional one as they see fit.
PDO Level Results Indicators and Intermediate Results. The PIU CN TIPPEE will get
its information from ARCEP but also directly from the operators or other stakeholders
when necessary. ARCEP will bear the primary responsibility for collecting data from the
operators and ISPs and from ANINF and will conduct ad-hoc surveys as appropriate (e.g.
for the purpose of Increased access to ICT services: Number of localities with broadband
Internet access (256Kbps) assessment); in order to ensure a smooth and regular collection
of information, ARCEP will identify within each source of data (operators, ISPs, ANINF) a
focal point that will serve as ARCEP’s counterpart for M&E so that the person can
anticipate data collection and the necessary resources and provide data to ARCEP.
Indicators will be collected yearly as a minimum, but ARCEP will endeavor to collect them
every 6 months. ARCEP will designate a focal point for M&E that will provide the PIU
with collected monitoring and evaluation indicators.
Environmental and Social Indicators. The PIU CN TIPPEE, through its Environmental
and Social Safeguards Focal Point, will bear the primary responsibility for collecting data
relative to verifiable indicators defined in the safeguard documents for the ACE component
and for the Phase I of the National backbone component that will be measured as part of
the project global monitoring plan.
72. Views of direct beneficiaries. The views of the 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, Internet Services Providers and private ICT firms, which ultimately are the main
beneficiaries of the project’s outcome.
78
73. Indicators.
PDO Level Results Indicators and Intermediate Results. The project includes 12
indicators to measure the success or not of this operation. The first 5 are PDO level
indicators, measuring the progress toward PDO achievement. Each of these 5 indicators
assesses a particular aspect of the Project Development Objective. At the end of the project,
the success of this operation will be measured against the target values of the PDO
indicators (see Annex 1). Intermediate Results Indicators will assist in measuring more
specifically the results of component 1 - Enabling environment and of component 2 –
Connectivity; these indicators have been defined building upon lessons learned in previous
APLs (in particular CAB2 STP for international connectivity with the ACE submarine
cable, CAB3 CG for terrestrial backbone links). The Fiber Optic Commission and the PIU
will be able to measure whether the implementation is on track or not by benchmarking the
yearly targets of these 12 indicators. If the project execution goes off track, the Fiber Optic
Commission must propose a list of corrective actions (see section on Reporting).
Environmental and Social Indicators. The project includes 12 strategic indicators to
follow the ESMP for the ACE component, complemented by 8 indicators to follow
specifically the ARAP. The project includes also 6 strategic indicators to follow the ESMF
for the Phase I of the National backbone component, complemented by 22 indicators to
follow specifically the RAF and 7 indicators to follow specifically the IPPF. The Fiber
Optic Commission and the PIU will be able to measure whether the implementation of
environmental and social safeguards is on track or not. If the implementation goes off
track, the Fiber Optic Commission must propose a list of corrective actions (see section on
Reporting).
74. Reporting. The PIU CN TIPPEE will have overall responsibility for reporting to the
MCEN and to the Fiber Optic Commission. There is already a person responsible within CN
TIPPEE for M&E. This person will liaise with ARCEP’s focal point as well as with
environmental and social stakeholders and will put together the M&E report biannually 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.
75. Mid-Term Review. The Fiber Optic Commission and the PIU CN TIPPEE will have one
opportunity to revise the results framework: the mid-term review mission will look at the realism
and relevance of the indicators and targets and will propose changes if necessary.
5. Role of Partners
76. The French Development Agency has indicated its willingness to finance additional
national backbone links that will ―branch out‖ towards the northern borders from the link
financed under CAB4 GA. Regular exchanges of information with AFD have taken place
throughout project preparation. The AFD has indicated that the PPP structure and implemented
open access rules defined in the Bank CAB4 GA project shall also apply to the AFD project.
79
77. GoG decided to use some of the resources of the Oil Investment Fund PIH (Provision
pour Investissement en Hydrocarbures), financed by the TOTAL Group, to fund a share of the
ACE consortium fee as well as new national capacity via a submarine cable from Libreville to
Port Gentil80. As in any intervention in the context of a PIH funding, the TOTAL Group has
provided expertise and support in project management for the ACE component to the Fiber Optic
Commission established by GoG.
80
The projects to be financed under the PIH are jointly decided by GoG and the TOTAL Group (with GoG owing 25% of the
Gabonese subsidiary of the TOTAL Group). According to the GoG’s new economic vision called -―Emerging Gabon‖ (Gabon
Emergent), the PIH shall finance major infrastructure projects. Other such projects are e.g. the sanitation program and the
upgrade of the airport in Port Gentil.
80
Annex 4
Operational Risk Assessment Framework (ORAF)
AFRICA: Central African Backbone - APL4 - Gabon Project (CAB4 GA)
Project Development Objective(s)
The development objective of the proposed project is to contribute to increase geographical reach and usage of regional broadband network services and reduce their prices in the territory of the Gabonese Republic.
PDO Level Results Indicators:
1. International internet bandwidth 2. Access to internet services (number of subscribers per 100 people) 3. Access to telephone services (fixed mainlines plus cellular phones per 100 people) 4. Average monthly price of wholesale international E1 capacity link from capital city to Europe 5. Number of project direct beneficiaries (percentage of female)
Project Stakeholder Risks Rating Substantial Description :
- Despite very strong interest to join ACE and national backbone projects, the buoyant private sector remains insufficiently informed about GoG’s proposed approach to implementing PPP and open access principles to make a financial commitment. Furthermore there is a concern that GoG may not effectively handling over operation and maintenance to the private sector despite commitments formalized in its request for financing. - Despite representatives of both MCPEN and ANINF participation
on the GoG’s ACE project steering committee, there is insufficient
coordination between MCPEN and newly created ANINF.
- The sector regulator ARCEP has not been adequately involved in
the ACE project so far and lacks expertise to guarantee
implementation of open access principles and sound competition in
the developing broadband market. There is a risk that new submarine
capacity and terrestrial national fiber backbone do not feed quickly
enough into lower retail prices and higher bandwidth available in the
country.
Risk Management :
In order to obtain effective financial commitment by the private sector, consultants have been hired in October 2011 under the PPA to assist in showing that GoG’s proposed approach complies with open access principles and PPP as well as improving via workshops the interaction with private sector. In particular business cases enabling to compute fully cost oriented prices have been presented to ensure private sector committing to purchasing capacity and secure payback (see Annex 7). Guidelines on how to implement open access and PPP principles have been discussed and agreed with GoG during appraisal and will be included in a supplemental letter to the loan agreement. Disbursement conditions have been set to ensure that the HoldCo and its ACE subsidiary are duly created, registered and made operational and to ensure that the independent private wholesale operator is selected in form and substance satisfactory to the Bank. Finally performance of private wholesale operator against appropriate KPIs in monitored as part of project supervision.
Resp: Client Stage: Preparation Due Date : 03/22/2012 Status: Not yet
due
A Fiber Optic Commission with high level representatives of MECIT, MCPEN, ANINF and
ARCEP will be set up and be in charge of overall operative guidance, direction and coordination
during project implementation. The team will monitor during preparation and implementation
how coordination is performed and advise should the need for improvements or streamlining
arise.
81
Resp: Client Stage: Preparation Due Date : 03/22/2012 Status: Not yet
due
Risk Management :
TA will provide ARCEP with a study and specific training on key tools for broadband regulation.
Resp: Client Stage: Preparation /
Implementation Due Date : 09/30/2012
Status: Not yet
due
Implementing Agency Risks (including fiduciary)
Capacity Rating: Moderate
Description :
There is a risk that decisions may not be made in a timely manner as
capacity of both the Line Ministry MCPEN and the newly created
ANINF are low.
Risk Management :
The Bank will fund targeted TA and capacity building activities throughout project
implementation to all key stakeholders (MCPEN, ARCEP, ANINF) as well as to the PIU CN-
TIPPEE. The strategy for implementation support (see Annex 5) has also been developed to
provide mitigation measures to capacity risk. In addition, telecommunications TA has been
planned within the new RTA.
Resp: Client Stage: Implementation Due Date : 06/30/2012 Status: Not yet
due
Governance Rating: Moderate
Description :
- The project implementation unit (PIU) will be an already
established and experienced PIU (CN-TIPPEE). However, there is (i)
a need for GoG to cover the operating costs as counterpart funding
and (ii) there may be an issue of capacity when the PIU is required to
manage CAB4 GA in parallel with other projects or if PIU staffing
decreases in 2012 because the WB project PDIL is not extended.
- The Line Ministry MCPEN and the ANINF may also encounter
difficulties in managing activities scheduled under CAB4 GA as
experience in Gabon shows that the Government has a weak capacity
in the management of externally funded projects (leading in the past
to delays in the implementation and low disbursement rate).
Risk Management :
Commitment of GoG to cover operating costs of CN-TIPPEE will be included in the legal
covenants. In addition the team will monitor the staffing situation at the PIU during preparation
and implementation and advise on how to handle the additional workload generated by CAB4
GA. Based on the experience of similar projects, the budget will cover the costs of some
additional staffing to process CAB4 GA should the need arise.
Resp: Client Stage: Preparation /
Implementation Due Date : 06/30/2012
Status: Not yet
due
Risk Management :
A technical advisor will be placed at the Line Ministry MCPEN and the ANINF to handle the
additional workload generated by CAB4 GA. Trainings will be organized throughout project
implementation for the staff of the Line Ministry MCPEN, the ANINF and ARCEP on the
Bank’s project cycle and procurement and FM guidelines of Bank funded projects.
Resp: Client Stage: Preparation /
Implementation Due Date : 06/30/2012
Status: Not yet
due
82
Project Risks Design Rating: Substantial
Description :
- PPP structuring negotiations are in general difficult.
- While GoG has confirmed its commitment to counterpart funding
for the PIU, some project delays were experienced due to
counterpart funding issues during the course of the last CAS.
Risk Management :
PPA will provide extensive support for PPP negotiations, including capacity building for
Gabonese shareholders. PPP negotiations will be well advanced before Board because guidelines
on how to structure the PPP have been agreed with GoG (see Annex 2) and because the ACE
cable will have been laid down and required operations and maintenance arrangements have
therefore to be put in place pursuant to the ACE Construction & Maintenance Agreement. This
support includes a detailed economic study to confirm robust pending demand and identify any
need for appropriate demand stimulating approaches. It also includes discussion appropriate rules
to ensure that the private sector is involved in defining the next phases of national backbone roll-
out.
Resp: Bank Stage: Preparation Due Date : 01/17/2012 Status: achieved
Risk Management :
The MECIT will be responsible for collecting contributions from relevant institutions and will
channel the subventions to the PIU according to a specific schedule in order to mitigate risks of
untimely availability of counterpart funding.
Resp: Bank Stage: Preparation Due Date : 02/07/2012
Status: Not yet
due
Social & Environmental Rating: Moderate
Description :
- The submarine cable will be laid in international and territorial
waters between June and December 2011, starting with the segment
France/Senegal, followed by Senegal/Ivory Coast and finally Ivory
Coast/STP (serving Gabon); in each country, a landing station will be
built close to the shore to connect the submarine cable with terrestrial
networks. The necessary environmental and social safeguards instruments (ESMP, ARAP) for the cable and any associated equipment that will be laid from the junction with the main cable through territorial waters and onto the national shores have been prepared by consultants hired under the PPA but delivered when works had started and were at an advanced stage.
- The exact path of the fiber and the location of associated technical
sites are not yet known: there is a risk of adverse social and
environmental impact of the project.
Risk Management :
Final versions of the safeguards documents (ESIA, ESMP, ARAP) were reviewed and cleared by the World Bank on December 29, 2011. Submission for public disclosure in the Bank InfoShop has been made on January 4, 2012 and documents were disclosed publicly in local language in the country on January 31, 2012. Environmental audit was conducted from January 13 to 18, 2012 and ascertains that there are no outstanding issues with works under the ACE components. Relevant provisions of the safeguard documents will be included in the Project Implementation Manual. Also, since CAB4 GA will involve PPP
schemes, appropriate technical clauses will be prepared and included in the biddings/binding
documents for the SPV(s) when necessary, to ensure the execution of agreed environmental and
social safeguards measures and implementation of the recommendations in the instruments.
Arrangements for environmental and social safeguards supervision have been defined and agreed
as well as funding requirements. Relevant provisions of the safeguard documents have been
included in the Project Implementation Manual. Inputs from Bank’s environment and social
specialists will be provided throughout project implementation, to support the Environmental and
Social Safeguards Focal Point (Point Focal Environnement et Social (PFES)) within the PIU as
well as the Line Ministry in charge of Ecology and Sustainable Development) in monitoring the
effective implementation of safeguards.
Resp: Client Stage: Preparation Due Date : 02/07/2012 Status: Not
83
yet due
As the final paths / sites are not yet chosen nor the specific civil works identified for the
terrestrial fiber optic link between Libreville and Franceville and the Border with Congo, an ESMF, an RPF and an IPPP have been prepared by consultants hired the PPA. All three safeguard documents for national backbone connectivity were submitted in draft version to the Bank on December 27, 2011 and comments have been provided by the Bank’s environmental and social safeguards team on January 4, 2012. Final versions have been received cleared by the Bank on January 23, 2012 for ESMF and on January 25, 2012 for IPPF. All documents have been subsequently disclosed publicly in the country on January 31, 2012 as well as in the Bank InfoShop. Once the final path / sites will be chosen and the specific civil works identified, the necessary environmental and social safeguards instruments (ESMP, RAP or ARAP) will be prepared. Also, since CAB4 GA will involve PPP
schemes, appropriate technical clauses will be prepared and included in the biddings/binding
documents for the SPV when necessary, to ensure the execution of agreed environmental and
social safeguards measures and implementation of the recommendations in the instruments. An
Environment and Social Safeguards Focal in the PIU will be in charge of coordinating the
implementation, the monitoring (control and audit) of social and environmental aspects and be an
interface between the project, local authorities and other stakeholders. Arrangements for
environmental and social safeguards supervision have been defined and agreed as well as
funding requirements. Relevant provisions of the safeguard documents have been included in the
Project Implementation Manual. Inputs from Bank’s environment and social specialists will be
provided throughout project implementation, to support the Environmental and Social
Safeguards Focal Point (Point Focal Environnement et Social (PFES)) within the PIU as well as
the Line Ministry in charge of Ecology and Sustainable Development) in monitoring the
effective implementation of safeguards.
Resp: Client Stage: Preparation /
Implementation
Due Date : 01/09/2012
(ESMF, RPF)
Status: Not
yet due
Program & Donor Rating: Moderate
Description :
- AFD is discussing with GoG a possible operation to finance
additional national backbone links - under subsequent phases of roll
out of a national backbone - that will ―branch out‖ from the link
financed under CAB4 GA, in particular new national capacity via
terrestrial fiber to the border with Cameroun, and is in agreement
with the Bank to promote PPPs and open and competitive access
principles. However project is not dependent on counterpart funding
not materializing as the AFD financed links are ―branching out‖ from
Franceville and will bring some additional traffic on the links
financed by the Bank.
Risk Management :
The Fiber Optic Commission with representatives of MECIT, MCPEN, ANINF and ARCEP that
will be set up and be in charge of overall technical and operative guidance, coordination and
direction during project implementation will cover the whole backbone, i.e. Bank funded CAB4
GA and any future projects financed by other donors such as AFD.
Resp: Client Stage: Preparation Due Date : 03/22/2012 Status: Not
yet due
Risk Management :
The teams for CAB4 GA and for CAB3 CG will organize reciprocal information between the
Project Steering Committee of both projects to ensure appropriate planning and implementation
of cross border interconnection.
84
- Project is partly dependant on successful interconnection with the CAB3 CG (link Dolisie – Mbinda). - Project is dependent on timely payment of installments to the ACE Consortium. The only (minor) risk is that Gabon loses its voting rights during a period of approx. 1 month if installment #7 is paid in June.
Resp: Clients / Bank Stage: Implementation Due Date : Ongoing Status: Not
yet due
Risk Management :
Installment scheduling is shared between GoG’s own funds, contributions from a special
development fund financed by Total Group and IBRD funds. Installments financed by GoG’s
own funds and contributions from a special development fund financed by Total Group have
already been paid. Gabon intends to pay installment #7 with own funds and request
retrofinancing.
Resp: Client / Bank Stage: Preparation Due Date : 02/07/2012 Status: Not
yet due
Delivery Monitoring & Sustainability Rating: Moderate
Description :
Mitigation measures for the risk that the implementing agency is not
able to adequately sustain its efforts (use of an existing PIU, technical
advisor to be placed at the Line Ministry MCPEN and at ANINF)
have been mentioned at Implementing Agency Risks.
Key data collections and sharing, particularly from operators, may be
difficult as the market is highly competitive. Furthermore the country
has not the culture of monitoring and evaluation.
Setting up a PPP for operating the international, regional and national
connectivity shall ensure effective operation and maintenance of the
infrastructure.
Risk Management :
Training will be made available during implementation for monitoring and evaluation for the
Line Ministry MCPEN, the ANINF, ARCEP and for the PIU as well as technical assistance to
define specific actions that will ensure efficient data collection. The system will be designed in
such a way as not to affect the operators’ competiveness.
Resp: Client Stage: Preparation /
Implementation Due Date : Ongoing
Status: Not
yet due
Other Rating: Moderate
Description :
Despite strong strategic interest of the railway SETRAG for the project, there is a risk that appropriate terms and conditions under which the fiber will be laid down and operated by the SPVs are difficult to define.
Risk Management :
Technical assistance including transaction/legal, regulatory and economic/financial support will be provided under Component 1 of the project to define with SETRAG the terms and conditions under which the fiber will be laid down and operated by the SPVs. A route survey will be undertaken by GoG to determine jointly with SETRAG the best technical solution for laying down the fiber (fully manual, use of machines alongside the tracks when sufficient space is available, use of machines positioned on specially equipped wagons, etc..
Resp: Client Stage: Preparation /
Implementation Due Date : 12/31/2012
Status: Not
yet due
85
Overall Risk Following Review
Preparation Risk Rating: Substantial Implementation Risk Rating: Substantial
Comments: The preparation is rated Substantial. While there are a number of risks involved, the PPA will allow for these
risks to be contained and appropriate mitigation measures to be put in place. Despite delays caused by the set up
of the newly established ANINF, there is high commitment from the GoG to open access and PPP principles and
GoG’s proposed approach has generated strong appetite from the private sector.
Comments: The implementation is rated Substantial as well due
to the risks linked to weak implementation capacity.
86
Annex 5: Implementation Support Plan
AFRICA: Central African Backbone - APL4 - Gabon Project (CAB4 GA)
Strategy and approach for Implementation Support
1. The strategy for implementation support (IS) has been developed based on the nature of the
project and its risk profile. It will aim at making implementation support to the client more flexible and
efficient, and will focus on implementation of the risk mitigation measures defined in the ORAF.
PPP and Open Access principles. Resources have been provided to ensure that Gabon has the
requisite transaction/legal, regulatory and economic/financial experts to ensure open access and effective
structuring of the PPP in close interaction with the private sector.
Environmental and Social Safeguards. Resources have been provided under the PPA to support
Gabon to undertake environmental and social assessments as well as to put in place mitigation measures.
Final versions of the safeguards documents (ESIA, ESMP, ARAP) for international connectivity were
reviewed and cleared by the World Bank on December 29, 2011. Submission for public disclosure in the
Bank InfoShop has been made on January 4, 2012 and documents were disclosed publicly in local
language in the country on January 31, 2012. Final versions of the safeguards documents for the
National Backbone have been cleared by the Bank on January 23, 2012 for ESMF and RPF on January
25, 2012 for IPPF. All documents have been subsequently disclosed publicly in the country on January
31, 2012 as well as in the Bank InfoShop. Relevant provisions of the safeguard documents will be
included in the Project Implementation Manual. The Bank team will supervise the implementation of the
agreed plans and provide guidance to address any issues. In particular the Fiber Optic Commission is
requested to designate within the PIU an Environment and Social Safeguards Focal Point (Point Focal
Environnement et Social (PFES)) that will be in charge of coordinating the implementation, the
monitoring (control and audit) of social and environmental aspects and be an interface between the
project, local authorities and other stakeholders.
Procurement. A procurement capacity assessment of the Implementation Unit (CN-TIPPEE) was
carried out during the pre-appraisal mission in November 2011. The assessment did not reveal any
anomaly in the functioning of CN-TIPPEE. The CN-TIPPEE satisfactorily carried out all the preparatory
studies and activities under Project preparation Advance for the project. Several post procurement
reviews carried out in the CN-TIPPEE were satisfactory. The staff in the Implementation Unit includes a
procurement specialist who has procurement experience at both national and international levels
(including World Bank experience). The procurement filing and archiving system in the Project
Implementation Unit was found to be acceptable by the Bank and the same system will be maintained
during the project’s life. The assessment did not reveal any anomaly within the procurement unit of the
project Implementation Unit, except for the need of training in the use of procurement monitoring and
management programs and the need to involve staff from beneficiary institutions (MCPEN, ANINF,
ARCEP. etc...) in all procurement procedure and more particularly in preparing the technical
specifications and terms of references and participation in selection committees. Under the project, the
procurement specialist as well as staff from beneficiary institutions will benefit from procurement
training organized by specialized regional procurement training centers or at the Bank’s country office
in Gabon
87
Financial management. The overall FM risk is considered Moderate since the implementing agency is
an existing and adequately-performing PIU endowed with all fiduciary requirements. The proposed
financial management arrangements for this project are considered adequate to meet the Bank’s
minimum fiduciary requirements under OP/BP10.02. The assessment recommended among other
measures (i) the adoption of the Project Implementation Manual; (ii) the amendment of contract of the
current external auditor.
Other Issues. Sector level risks will be addressed through policy dialogue with MCPEN, ANINF and
ARCEP.
Implementation Support Plan
2. 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 of annual visits in
later years of the project. Detailed inputs from the Bank team are outlined below:
Technical and Legal/Regulatory inputs. Technical telecommunications and legal/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 will provide
technical support and conduct supervision visits whenever needed. Legal support will be provided as
necessary.
Fiduciary requirements and inputs. The team will help the CAB4 GA PIU 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. Trainings will be organized throughout project implementation for the staff of
the Line Ministry MCPEN, the ANINF and ARCEP on the Bank’s project cycle and procurement and
FM guidelines of Bank funded projects.
o Procurement implementation support. In addition to the prior review supervision to be carried
out from Bank offices, the Recipient and the Bank team have agreed to around three missions per
year for the first two years of project implementation to minimize the risk of failing to follow
procurement procedures as well as for supervision of project activities. The Recipient and the
Bank have also agreed to two supervision field visits to carry out post-review of procurement
activities
o FM implementation support. FM implementation support mission will be consistent with a risk-
based approach, and will involve a collaborative approach with the entire Task Team (including
procurement). A first implementation support mission will be performed six months after the
project effectiveness. Afterwards, the missions will be scheduled by using the AFTFM risk based
approach model and will include the following diligences: (i) monitoring of the financial
management arrangements during the supervision process at intervals determined by the risk
rating assigned to the overall FM Assessment at entry and subsequently during Implementation
(ISR); (ii) review the IFRs; (iii) review the audit reports and management letters from the
external auditors and follow-up on material accountability issues by engaging with the task team
leader, Client, and/or Auditors; the quality of the audit also is to be monitored closely to ensure
that it covers all relevant aspects and provide enough confidence on the appropriate use of funds
by recipients; and, (iv) physical supervision on the ground specially for the matching grant
scheme; and (v) assistance to build or maintain appropriate financial management capacity.
88
Safeguards. Inputs from an environment specialist and a social specialist will be required, to support
the Environmental and Social Safeguards Focal Point (Point Focal Environnement et Social (PFES))
within the PIU as well as the Line Ministry in charge of Ecology and Sustainable Development)81
in
monitoring the effective implementation of safeguards. Field visits are unlikely to be required, but this
will be confirmed – the social and environmental specialists will be available on a need basis.
Operation. The TTL will provide day to day supervision of all operational aspects, as well as
coordination with the client and among Bank team members. If needed, a consultant may be used to
support this role. 3. The main focus of implementation support by the Bank team is summarized below.
Time Focus Resource Estimate Partner Role
First
twelve
months Team leadership, technical and
procurement review of the bidding
documents and Institutional arrangement
and project supervision coordination
ICT Policy Specialist
Ongoing
exchanges of
information as
required by the
preparation of
the partner’s
project
Strengthening of PIU
Procurement specialist, Financial
specialist
N/A
Transaction/Legal and Regulatory
advisory work Legal support
N/A
Environmental and social safeguards
Environmental specialist, social
specialist
N/A
12-48
months Team leadership, technical and
procurement review of the bidding
documents and Institutional arrangement
and project supervision coordination
ICT Policy Specialist
Ongoing
exchanges of
information as
required by the
preparation of
the partner’s
project
Procurement training and issues Procurement specialist
N/A
FM training and supervision FM specialist
N/A
Environmental and social safeguards
supervision
Social specialist
Environmental specialist
N/A
Transaction/Legal and Regulatory
advisory work Legal support
N/A
Other Egovernment advisory work Egovernment Specialist
N/A
Note: SW – Staff-Week
81
Ministère de l’Habitat, de l’Urbanisme, de l’Ecologie et du Développement Durable / Direction Générale de l’Environnement et de
la Protection de la Nature.
89
4. Bank staff skill mix required is summarized below.
Skills Needed Number of Staff Weeks Number of Trips Comments
Task team leader and ICT
Policy Specialist
8 SWs annually Fields trips as required. Washington, DC or
Country office based
Procurement specialist 3 SWs annually first twelve
months
2 SWs annually
Fields trips as required. Country office based
Financial management
specialist
2 SWs annually Fields trips as required. Country office based
Social specialist
1 SW first twelve months
0.5 SWs annually afterwards
Fields trips as required. Country office based
Environment specialist
1 SW first twelve months
0.5 SWs annually afterwards
Fields trips as required. Country office based
Legal support 1 SWs annually Fields trips as required. Washington, DC based
Egovernment specialist 2 SWs annually in year 3 and
year 4
Fields trips as required. Washington, DC based
Note: SW – Staff-Week
Partners
Name Institution/Country Role
Agence Francaise de Développement
French Development Agency
France Finance additional national
backbone links - under
subsequent phases of roll out of a
national backbone - that will
―branch out‖ from the link
financed under CAB4 GA, in
particular new national capacity
via terrestrial fiber to the border
with Cameroun
TOTAL Group Gabon As in any intervention in the
context of a PIH funding, the
TOTAL Group provided
expertise and support in project
management for the ACE
component to the Fiber Optic
Commission established by GoG
90
Annex 6: Team Composition
AFRICA: Central African Backbone - APL4 - Gabon Project (CAB4 GA)
World Bank staff and consultants who worked on the project:
Name Title Unit
Michel Rogy Task Team Leader
ICT Policy Advisor
ICT Sector Unit
Maria Isabel A. S. Neto Senior ICT Policy Specialist ICT Sector Unit
Jerome Bezzina Regulatory Economist ICT Sector Unit
Doyle Gallegos Lead ICT Policy Specialist ICT Sector Unit
Laurent Besancon Senior Regulatory Specialist,
Regional Coordinator Africa
ICT Sector Unit
Marc Jean Lixi Senior Operations Officer ICT Sector Unit
Alan Carroll Operations Adviser ICT Sector Unit
Michele Ralisoa Noro Senior Program Assistant ICT Sector Unit
Erica Monique Daniel Program Assistant ICT Sector Unit
Aissatou Diallo Finance Officer CTRLA
Alexandra Bezeredi Regional Environmental and
Safeguards Advisor
AFTOS
Bienvenu Rajaonson Sr. Environmental Specialist AFTEN
Lucienne M’Baipor Sr. Social Development Specialist AFTCS
Ningayo Charles Donang Senior Procurement Specialist AFTPC
Kouami Housinou Messan Senior Procurement Specialist AFTPC
Ousmane Maurice Megnan
Kolie
Finance Management Specialist AFTFM
Patrick Bongotha Financial Management Analyst AFTFM
Claudia M. Pardiñas
Ocaña
Senior Counsel LEGAF
Alexandra C. Sperling Paralegal LEGAF
David Satola Senior Counsel LEGPS
Casey Torgusson Operations Analyst AFCAD
Frode Davanger Senior Operations Officer AFCRI
Deo Ndikumana Senior Operations Officer AFCRI
Frode Davanger Senior Operations Officer AFCRI
Julie Dana Senior Financial Officer BDM
Fatima Revuelta Junior Professional Associate BDM
Luis de la Plaza Lead Financial Officer BDM
Rick Emery Tsouck
Ibounde
Economist AFTP3
Sonia Vanecia Boga Team assistant AFMGA
91
Annex 7: Economic and Financial Analysis
AFRICA: Central African Backbone - APL4 - Gabon Project (CAB4 GA)
International connectivity via the ACE submarine cable landing in Libreville
1. Connecting to ACE is most cost-effective long term option for improved access to
international connectivity in Gabon. Financial analysis was performed for Gabon82
. The
analysis considered a variety of radio wave, satellite and fiber options and concluded that for a
coastal country like Gabon a submarine fiber link is the best overall option in terms of long-
term cost effectiveness and bandwidth availability when international connectivity required is
multiples of Gbps as it is the case for broadband services as well as in terms of quality of
service83
. Since 2002, the country has access to international bandwidth via the Libreville
SAT3-WASC submarine cable landing station, but Gabon Telecom is rationing access to the
bandwidth on this international fiber optic link despite regulatory intervention84
and does not
allow open access to the SAT3-WASC landing station in Libreville. Furthermore, Gabon
Telecom pushes the price of submarine international bandwidth (on which it has a monopoly) to
the cost of the next alternative: the satellite link (which is currently used by mobile operators for
their international long-distance telephony and by ISPs for their international Internet
bandwidth). Finally, the SAT3-WASC submarine cable has experienced in recent months
several availability problems that have pushed coastal countries on the West African coast
towards alternative submarine cables to SAT3-WASC for redundancy and security purposes.
The new ACE submarine cable – available in accordance with Open Access principles - is the
best submarine fiber option as it has the potential to address rapidly the urgent need for high
capacity to the international backbone at a substantially lower cost than currently available in
Gabon by satellite (VSAT)85
. Its design is both ―state of the art‖ and proven, uses well-
established procedures, and involves no significant technology risk. The choice of SDH / WDM
electronics is conservative and has reasonable efficiencies carrying Internet Protocol (IP) traffic.
The disadvantage of a submarine cable option is that upfront costs are higher (higher cost per
Mbit/s for initial capacity) whilst subsequent capacity upgrades are at a much lower cost per
Mbit/s: in the case of ACE, initial capacity is 3.7 Gbps86
for US$30 million, whilst subsequent
82
Based on the report and financial model developed by Mr. Yves Rouhaud, Technical and Economical consultant advising GoG
(see : Projet CAB4-CITGB, Plan d’entreprise du PPP pour l’accès au câble sous-marin ACE, Date : 12 décembre 2011). 83
The latency factor introduced in satellite links can be a problem with some communication services, especially high data
interactive multimedia applications. The almost 1-second delays introduced by satellite connectivity significantly reduces
performance of international services and limits the types of services that can be provided, such as the use of secure Virtual
Private Networks (VPNs) which time out when performance is degraded by satellite links. 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. The perceived disadvantages of satellite can limit foreign investment in the sector,
especially among high bandwidth consuming large businesses that Gabon is seeking to attract. 84
Gabon Telecom has activated on SAT3-WASC an international Internet bandwidth of 1.2 Gbits/s (equivalent to 8 STM-1). 85
Once operators and ISPs have migrated the bulk of the international connectivity onto ACE, SAT3-WASC could become an
alternative to satellite for back up / redundancy. 86
The capacity available on the submarine cable is expressed both in terms of bandwidth (STM-1) and of distance (km). The
total initial capacity for Gabon is 190,840 STM-1 x km. To estimate the corresponding capacity available from Libreville,
assumptions have to be made on the average typical distance used from Libreville. The distance depends on which locations an
operator wishes to connect with the submarine cable. The distance from Libreville to Penmarch (France) is 7208 km and 6324
km to Sesimbra (Portugal). In the case of Gabon, the average typical distance used has been estimated at 8,000km. With one unit
of 8,000 STM-1 x km, an operator or ISP in Gabon will connect Gabon with Europe and also with some capital cities on the ACE
92
upgrades are estimated to be approximately US$2 million for 10 Gbps. Therefore this solution
offers the lowest price in the medium to long term in Gabon as average cost for Mbit/s will tend
towards incremental costs with successive upgrades.
2. Detailed demand study has been conducted to assess and confirm robust pending
demand for international connectivity in Gabon.
GoG, operators, ISPs as well as large business international connectivity needs have been
assessed with a ―bottom up‖ analysis through interviews and questionnaires. Short term
connectivity needs are of 26 units of STM-1 x 8,000km, which is slightly above the
initial capacity on the ACE submarine cable. Medium connectivity needs are estimated at
80 units of STM-1 x 8,000km, primarily driven by the roll out of 3G services by mobile
operators and large business customers in Libreville and Port Gentil significantly
expanding usage of broadband services provided by operators and ISPs following
improved access to international connectivity. Would Gabon Telecom manage to
improve both its technical and financial conditions of access to SAT3-WASC, the
estimated impact on the Medium Term needs for ACE is a decrease of 20%, as operators
and ISPs in Gabon would look for limited redundancy on the SAT3-WASC cable.
Figure 14: Short term and Medium term needs for international connectivity on ACE in Gabon
(bottom up analysis)
Short term connectivity needs
(2012)
Medium term connectivity needs
(+ 5 years) Comments
Users ACE
STM-1x8,000km % STM-1x8,000km %
GoG 4 15% 4 5%
Gabon Telecom 0 0% 8 10%
Airtel Gabon 16 62% 16 20%
Libertis 0 0% 8 10%
Atlantique Telecom 1 4% 8 10%
Medium term needs assuming
3G license
Usan (Azur) 0 0% 8 10% No short term needs
ISPs 5 19% 10 13%
Assuming flexibility in paying
the IRUs (see Annex 2)
Broadcasters
4 5%
Financial sector
4 5%
Total
1 1%
Other oil companies
3 4%
Postal
1 1%
Railways
1 1%
Other large
businesses
4 5%
TOTAL NEEDS: 26 100% 80 100%
The robustness of this assessment of Short term and Medium term needs for international
connectivity on ACE in Gabon has been confirmed by a ―top down‖ demand analysis. As
of December 2010, the broadband penetration in Gabon is already 14% (0.5 % for fixed
submarine cable in Africa (1,980 km to Abidjan, 178 km to Bata, etc). On the basis of this average typical distance of 8,000 km,
the initial capacity of ACE is 190,840 / 8,000 = 23.86 STM-1, which is 3.7 Gbit/s.
93
broadband market and 13.5% on mobile EDGE-GPRS, which indicates a real need for
Internet despite existing constraints on connectivity. The Medium term objective set by
the International Telecommunications Union (ITU) in the context of the Millennium
Development Goals (MDG) is to reach by 2015 an Internet penetration of 40% on
households. Such an objective could be considered within reach for Gabon with
improved access to international connectivity through ACE reducing retail prices given
that Gabon belongs to the Upper Middle Income Group and that more than 70% of the
population is living in urban areas (more than 50% in Libreville and Port Gentil that will
immediately benefit from the project). With a population of around 1.7 million
inhabitants in 2015 and 340,000 households, the targets for 2015 would be 136,000
households connected to broadband Internet either via fixed or via mobile broadband and
having a fairly permanent usage of Internet87
. The following table estimates the
international connectivity needs for different scenario of bandwidth per person and shows
that a conservative assumption of an average bandwidth per household of 1 Mbps within
5 years would imply Medium connectivity needs of 76 units of STM-1 x 8,000km (to be
compared with 80 units in the bottom up analysis).
Figure 15: Medium term needs for international connectivity on ACE in Gabon (top down analysis)
Basis = 136,000 households Hyp. 1 Hyp. 2 Hyp. 3 Hyp. 4
Residential customers and very small businesses
Average bandwidth per household (Mbps) 0.25 1.00 2.00 5.00
Total bandwidth required prior to contention
for households (Mbps) 34,000 136,000 272,000 680,000
Contention ratio88
20 20 20 20
Total bandwidth required after contention for
households (Gbps) 1.7 7 14 34
Total bandwidth required after contention
for households (SMT-1) 11 44 87 218
Total bandwidth required for very small
businesses (SMT-1) 10 10 10 10
Total needs for residential customers and
very small businesses (STM-1x8,000km) 21 54 97 228
Business customers
Total needs for business customers and GoG
(STM-1x8,000km)* 22 22 22 22
Total needs for Gabon (STM-1x8,000km) 43 76 119 240
* considered fairly inelastic once access to international connectivity has been improved
87
As opposed to persons, which may have a non permanent usage of Internet (e.g. using a GPRS/EDGE key only for some days
in the month). 88
The contention ratio is the ratio of the potential maximum demand to the actual bandwidth. The higher the contention ratio, the
greater the number of users that may be trying to use the actual bandwidth at any one time and, therefore, the lower the effective
bandwidth offered, especially at peak times.
94
3. Assumptions of financial analysis. Financial comparisons of satellite versus submarine
cable options were done using the following assumptions on a study period of 15 years. Scenario
4 is the base scenario. Scenarios 5, 6 and 7 enable to simulate the impact of a decrease in the
price of the IRU STM-1 x 8,000 km. Scenario 1, 2 and 3 enable to simulate the impact of project
costs higher than budgeted or demand for connectivity not materializing as expected.
Figure 16: Assumptions of economic and financial analysis for ACE international connectivity
Key parameters Units Scenarios
1 2 3 4 5 6 7 Exchange rate
1 Euro = XAF 655.957 655.957 655.957 655.957 655.957 655.957 655.957
1 Euro = US$ 1.3889
1.38 1.38 1.38 1.38 1.38 1.38
CAPEX ACE90
Increase in initial
investment compared to
budget of US$30
million US$ mio 3 3 2.5 2 2 2 2
Cost for upgrade (per
10 Gbps) US$ mio 3 3 3 2 2 2 2
Discount rate % 15% 15% 15% 15% 15% 15% 15%
% of expected demand
effectively
materializing % 40% 50% 60% 70% 70% 70% 70%
Annual growth rate of
demand from 2016 % 5% 5% 5% 5% 5% 5% 5%
Annual ACE OPEX as
a percentage of CAPEX % 3.5% 3.5% 3.5% 3.0% 3.0% 3.0% 3.0%
Annual increase of
operating staff costs in
the OpCo % 3% 3% 3% 3% 3% 3% 3%
Price IRU STM-11 x *
8,000 km ACE US$ mio 0.900 0.900 0.900 0.900 0.700 0.500 0.450
Average geostationary
satellite transponder
costs
US$ per
month per
Mbps 3,000 3,000 3,000 3,000 3,000 3,000 3,000
4. Connecting Gabon to ACE is a project that will result in a very suitable economic
return to Gabon. All scenarios show positive IRR after 15 years, even in adverse conditions
caused by project costs higher than budgeted or demand for connectivity not materializing as
expected. Scenarios 4 and 3 have a positive NPV, indicating an IRR after 15 years equal or
greater than 15%. The project would be cash-flow positive between 2014 and 2020 depending on
the scenario. In the base case scenario 4, assuming a discount rate of 15%, the project is
estimated to have a NPV of US$8 million over 15 years and an IRR of about 26%, breakeven
89
Estimated value for 2010-2012 period. 90
CAPEX estimate to not include the share of the interests of the IBRD Loan to be allocated to the ACE component. If estimated
interests would be allocated 50/50 to the two components (catering for higher profitability of the ACE component), the situation
would be comparable to a scenario between 2 and 3, with an IRR of 15% and a NPV of 5,183,853.
95
payback occurring in 2014. The financial analysis provides GoG and private sector with a
methodology to define the appropriate Price per IRU STM-1 x 8,000 km ACE enabling to
achieve an IRR of 15% after 15 years and a NPV equaling 0, if so wished by GoG and private
sector: depending on the scenario, the range would be between US$1,200,000 and US$700,000.
Figure 17: Results of financial analysis for ACE international connectivity
Scenario Initial
CAPEX
Initial
Total
CAPEX
Units of IRU
8000 STM11
x km ACE
sold in 2015
IRR
after
15
years
NPV
(US$) (US$)
(US$) 1 33,000,000 34,500,000 28 5% -7,804,787 2 33,000,000 36,000,000 34 11% -3,114,765 3 32,500,000 35,500,000 41 18% 2,317,809 4 32,000,000 35,000,000 48 26% 8,057,199 5 32,000,000 35,000,000 48 15% -74,749 6 32,000,000 35,000,000 48 5% -8,206,697 7 32,000,000 35,000,000 48 2% -10,239,684
5. Impact of improved international access through ACE will provide significant
potential to decrease retail prices for broadband services in Gabon either via fixed
broadband (DSL, WiMax) or mobile (3G) broadband access networks for residential and
very small businesses. Compared to current average US$30 per month per Mbps via satellite,
the ACE submarine cable will allow an almost 6 fold decrease towards around US$5 per month
per Mbps91
. Membership in the ACE submarine cable, if accompanied with robust regulation to
ensure competitive pricing releases demand, has potential to provide low cost international
access to a broad range of the population and very small businesses because broadband demand
is very sensitive to changes in price, and even small reduction in price can generate substantial
demand and penetration in the country. Recent research92
indicates for example that a compound
annual decline of 3% in cost of broadband access in the Africa and Middle East region could
increase penetration rate by more than 4 times by 2015. Given the penetration rate of broadband
services in Gabon as of December 2010, such multiplier effect93
is likely to have a significant
effect in Gabon: monthly prices for broadband decrease, in turn improving affordability and
increasing uptake of broadband services.
91
This analysis is inspired by margin squeeze tests performed by Regulatory authorities for broadband services. It provides a
straightforward information on how significant is the costing block ―international connectivity‖ for the setting up of the end user
price. Key parameters are the depreciation time for the asset and the contention ratio (see below). 92
Pyramid Research, New Undersea Cables Help Boost Africa’s Broadband Prospects: The Role of African Regulators to
facilitate market development and ensure affordable prices, presented by Sonia Jorge, Research Director, at the ITU-FTRA,
Banjul, The Gambia, July 12-14, 2010. 93
The multiplier effect describes how an increase in some economic activity starts a chain reaction that generates more activity
than the original increase.
96
Figure 18: Comparison of average cost of international connectivity per customer satellite vs. ACE
submarine cable (Medium term)
Satellite
Submarine cable
Hyp. 1 Hyp. 2 Hyp. 3 Hyp. 4
Households 136,000 136,000 136,000 136,000 136,000
Average bandwidth per
household (Mbps) 0.25 0.25 1.00 2.00 5.00
Total bandwidth required prior to
contention for household(Mbps) 34,000 34,000 136,000 272,000 680,000
Contention ratio94
25 20 20 20 20
Total bandwidth required after
contention for households (Gbps) 1.36 1.7 7 14 34
Total bandwidth required after
contention for households (STM-
1)
9 11 44 87 218
Bandwidth required by very
small businesses (STM1) 22 22 22 22 22
Total STM-11 19 21 54 97 228
Average geostationary satellite
transponder costs (S) 3 000
CAPEX (M$)
30.0 30.9 32.3 36.4
Average CAPEX per STM-1 (M$) 1.4 0.6 0.3 0.2
Depreciated CAPEX (over 10
years95
) per month per STM-11
($) 23 857 9 594 5 524 2 653
OPEX per month per STM-1 ($)
7 982 3 114 1 718 732
Average cost per customer ($) 30.00 4.89 5.00 5.17 5.67
6. Broadband internet has also 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 spillover 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 (OECD, 2003). Analytical studies have shown that firms using standard
broadband (defined as connection speeds above 256 Kbps (OECD, 2002)) were on average 10
percent 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
94
The contention ratio is the ratio of the potential maximum demand to the actual bandwidth. The higher the contention ratio, the
greater the number of users that may be trying to use the actual bandwidth at any one time and, therefore, the lower the effective
bandwidth offered, especially at peak times. 95
The depreciation is usually determined on the basis of the average duration of a client commitment in developed countries (3 to
5 years). In the Gabonese case, it is assumed that the appropriate duration should be longer (around 10 years). Sensitivity analysis
was done on this parameter showing no significant change in the overall conclusions.
97
0.2-0.3 percent 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 hypothesis that broadband penetration enhances economic activity. Increased
broadband speeds and less expensive data access have the potential to promote economic
activities in Central Africa, 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 and BPO sector.
7. Economic Benefits to Gabon of Investment in ACE. Recent evidence suggests that
increasing overall service coverage and promoting access to telecommunications services
provide a substantial economic benefit to low and middle income countries. World Bank
research on the economic multiplier effect of increased broadband penetration rates, presented in
the chart below, indicates that each 10% increase in broadband penetration increases overall
GDP growth in developing countries by 1.38%.96
Although causality in the relationship between
broadband and growth is hard to prove with the data available, analysis suggests high likelihood
of causality. The multiplier for broadband penetration is far higher than for any other major
telecommunications service. Lower-cost broadband connectivity provided by ACE can be
expected to encourage substantially higher broadband penetration in Gabon, thereby increasing
GDP growth. Based on the economic multiplier and estimated penetration rate in Gabon with or
without ACE capacity, the analysis indicates that the project will increase annual GDP per capita
in Gabon by an annual average of approximately 0.91% over the first 10 years of operation of the
ACE submarine cable.
Figure 19: Broadband Investment Effect on Economies97
96
Source: "Information and Communications for Development 2009: Extending Reach and Increasing Impact, World Bank.
Chapter: Economic Impacts of Broadband, page 45. Authors: Christine Zhen-Wei Qiang and Carlo M. Rossotto with Kaoru
Kimura. 97
All results are statistically significant at the 1 percent level except for that of broadband in developing countries, which is at the
10 percent level.
98
Figure 20: GDP Growth in Gabon from Increased Broadband Penetration98
8. New international capacity from ACE will be disseminated immediately via a new
submarine cable from Libreville to Gabon’s second main city and key economic area Port
Gentil (GoG’s counterpart funding). Port Gentil is currently accessing international
connectivity via satellite and is linked with Libreville via terrestrial radio waves. This option is
not longer appropriate for the international and national connectivity needs of the GoG
(eGovernment applications) as well as of the oil companies and other businesses located in Port
Gentil. Furthermore maintenance of terrestrial radio waves is particular difficult on the path from
Libreville to Port Gentil. Demand analysis shows that Port Gentil would generate close to 50%
of the capacity on the ACE submarine cable. Immediate dissemination of ACE international
capacity to Port Gentil is therefore a key factor to achieve suitable economic return of ACE to
Gabon.
9. A similar financial analysis was performed for Libreville Port Gentil and concluded that
connecting Libreville and Port Gentil is a project that will also result (provided the ACE
connectivity is available) in a suitable economic return to Gabon99
. The project would be
cash-flow positive between 2015 (best case scenario) and 2026 (worst case scenario). In a base
case scenario, assuming a discount rate of 15%, the project is estimated to have a NPV of
US$0.5 million over 15 years and an IRR of about 16%, breakeven payback occurring in 2015.
The financial analysis provides GoG and private sector with a methodology to define the
appropriate Price per IRU between Libreville and Port Gentil enabling to achieve an IRR of 15%
after 15 years and a NPV equaling 0, if so wished by GoG and private sector: depending on the
scenario, the range would be between US$1,900,000 and US$1,100,000 (with GoG’s initial
proposal of US$1,100,000 being towards the lower end of the range).
98
Calculation of impact on GDP Growth in Gabon. Without ACE, only a fraction of effective demand would be satisfied (85% in
2012, 80% in 2013, etc.) as depicted in the first row. Broadband penetration without ACE is derived in the second row and
compared with the scenario 4 with ACE in the third row. The fourth row recalls the 1.38 broadband multipler per 10% increase in
broadband penetration. The fifth row computes in increase in GDP growth rate by multiplying the difference between Broadband
Penetration with and without ACE, divide it by 10% and multiply it 1.38. The last row shows the average over the years of the
increase in GDP growth rate. In such a situation, it would be highly likely that within a 10 years period, another submarine cable
would consider setting up a landing station in Gabon. 99
Based on the report and financial model developed by Mr. Yves Rouhaud, Technical and Economical consultant advising GoG
(see : Projet CAB4-CITGB, Plan d’entreprise du PPP pour l’accès au câble sous-marin ACE, Date : 12 décembre 2011).
Impact on Gabon Growth in GDP resulting
from increased Broadband Penetration 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Effective demand satisfied without ACE 85% 80% 75% 75% 70% 70% 65% 65% 65% 65%
Broadband Penetration rate without ACE 14% 14% 14% 15% 15% 16% 16% 17% 17% 18%
Broadband Penetration rate with ACE 16% 17% 19% 20% 22% 23% 25% 26% 27% 27%
GDP multiplier / 10% increase in Penetration 1.38% 1.38% 1.38% 1.38% 1.38% 1.38% 1.38% 1.38% 1.38% 1.38%
Increase in GDP Growth Rate with ACE 0.33% 0.48% 0.64% 0.69% 0.90% 0.97% 1.22% 1.25% 1.29% 1.31%
Average in GDP Growth Rate with ACE 0.40% 0.48% 0.54% 0.61% 0.67% 0.75% 0.81% 0.86% 0.91%
99
Figure 21: Assumptions of financial analysis for national connectivity between Libreville and Port
Gentil
Key parameters Units Scenarios
1 2 3 4 5 6 7 Exchange rate
1 Euro = XAF 655.957 655.957 655.957 655.957 655.957 655.957 655.957
1 Euro = US$ 1.38100
1.38 1.38 1.38 1.38 1.38 1.38
CAPEX LBV-POG
Increase in initial
investment compared
to budget of US$26
million US$ mio 3 3 2.5 2 2 2 2 Cost for upgrade (per
10 Gbps) US$ mio 3 3 3 2 2 2 2
Discount rate % 15% 15% 15% 15% 15% 15% 15%
% of expected
demand effectively
materializing % 40% 50% 60% 70% 70% 70% 70%
Annual growth rate
of demand from 2016 % 5% 5% 5% 5% 5% 5% 5%
Annual increase of
operating staff costs
in the OpCo % 3% 3% 3% 3% 3% 3% 3%
Price IRU 8000
STM1 x km LIB-
POG US$ mio 1.200 1.200 1.200 1.100 0.900 0.900 0.900
Figure 22: Results of financial analysis for national connectivity between Libreville and Port Gentil
Scenario Initial
CAPEX Total
CAPEX
Units of IRU
STM-1 sold
in 2015
IRR after
15 years NPV
(US$) (US$)
(US$)
1 25,000,000 25,000,000 13 0% -9,100,469
2 24,500,000 24,500,000 20 10% -2,877,255
3 24,500,000 24,500,000 20 13% -1,248,464
4 24,000,000 24,000,000 23 16% 426,623
5, 6 and 7 24,000,000 24,000,000 23 10% -3,362,923
100
Estimated value for 2010-2012 period.
100
National backbone connectivity via a terrestrial fiber optic link
10. Building a terrestrial fiber optic link is most cost-effective long term option for
improved access to international connectivity on the Libreville – Franceville link as well as
for cross-border traffic with Congo. Financial analysis was performed for Gabon101
. The
analysis considered a variety of radio wave, satellite and fiber options and concluded that given
pending demand on the Libreville - Franceville link as well for cross-border traffic with Congo a
terrestrial fiber link is the best overall option in terms of long-term cost effectiveness and
bandwidth availability.
11. Detailed demand study has been conducted to assess and confirm robust pending
demand for international and national connectivity for Phase I of the national backbone,
using a combination of ―empiric‖ data from interviews and questionnaires with GoG, operators,
ISPs as well as large businesses and of ―theoretical‖ data from a broadband demand forecasting
tool using population data estimate for every area connected by the Phase I of the national
backbone102
and the PDO indicator International internet bandwidth103
. Building the fiber link
alongside railway tracks allows addressing the internal connectivity needs of the railway
company SETRAG (which is currently using VSAT connections) offsetting the relative cost
disadvantage of civil works alongside existing railways vs. existing roads (see Figure 24) and
enabling a transformational impact on SETRAG that is expected to use the infrastructure to
deploy a technology similar to ERTMS104
. Technical assistance including transaction/legal,
regulatory and economic/financial support will be provided under Component 1 of the project to
define with SETRAG the terms and conditions under which the fiber will be laid down and
operated by the SPVs. A route survey will be undertaken by GoG to determine jointly with
SETRAG the best technical solution for laying down the fiber (fully manual, use of machines
alongside the tracks when sufficient space is available, use of machines positioned on specially
equipped wagons, etc.).
101
Based on the report and financial model developed by Mr. Yves Rouhaud, Technical and Economical consultant advising
GoG (see : Projet CAB4-CITGB, Plan d’entreprise du PPP pour l’accès au câble sous-marin ACE, Rapport N° 2 : Phase I du
Backbone National, Date : 24 décembre 2011). 102
The Libreville to Franceville / Border Congo link covers approx. 6.7% of the total population. The Lekoni to Koulamoutou
via Franceville link covers approx. 2.6% of the total population. 103
See: Annex 1: Results Framework and Monitoring. 1 kbps is added to the PDO indicator for International internet bandwidth
to cater for estimated limited demand for National Internet traffic. 104
The European Rail Traffic Management System (ERTMS) is an initiative backed by the European Union to enhance cross-
border interoperability and signalling procurement by creating a single Europe-wide standard for train control and command
systems.
101
Figure 23: Short term and Medium term needs for connectivity on Phase I of the national backbone
in Gabon
Short term connectivity needs
(2014)
Medium term connectivity needs
(+ 5 years) Comments
Users Phase I of the national backbone
STM-1 % STM-1 %
Operators and ISPs 8 13% 11 12%
Cross border traffic
with Congo 5 8% 15 42%
Representing 10% of total
International traffic of Gabon
is secured through submarine
cable WASC landing station
in Congo and assuming
symmetrical traffic flows with
Congo (mutually redundant
links)
GoG 23 37% 37 5%
Assuming initial capacity
requirements of 4 STM1 per
Type 1 Site (Libreville,
Franceville), of 2 STM1 per
Type 2 site (provincial capital)
and of 1 STM1 per Type 3 site
(regional capital)
Broadcasters 2 3% 2 2% Equivalent to 20 HDTV
channels following digital
switchover
Railways 24 39% 24 27% 24 railway stations to be
connected between themselves
and with the railway operating
center located in Owedo
Other large
businesses
Several large businesses have
expressed interest: Comilog in
the mining sector, companies
in the wood sector in the
special economic zone of
Nkok, etc.
TOTAL NEEDS: 62 100% 89 100%
12. Due diligence has been made on the investments associated with Phase I of the
national backbone, confirming a total Capital Expenditure (CAPEX) of US$39,366,132105
.
The estimated average total CAPEX per km for the project is 34,962 US$ per km, to be
compared with an Average Cost Per Km To Deploy Fiber Optic Networks (Excluding Highest
and Lowest) in Africa of US$27,846 per km (according to sample data available to the Bank’s
ICT unit). Technical assistance under the PPA will support GoG in defining the appropriate
105
The Component 2 – Connectivity of the project foresees a total of 27 + 12 = 39 US$ million (i.e. 4% contingencies) to finance
the terrestrial fiber optic link Libreville - Franceville - Bakumba – Lekoko / Border with Congo (approx. 800 km) to interconnect
with the Congolese link Dolisie – Mbinda (already financed under CAB3 CG) and the additional link Lekoni - Franceville –
Koulamoutou (approx. 340 km) within the first phase of roll out of a national backbone.
.
102
strategy for the competitive and open tender in the specific context of Gabon to ensure best value
for money.
Civil works and Fiber amount to 76% of total CAPEX. A 48 pairs fiber optic cable will
be laid down, which is a robust forward looking assumption when considering additional
backbone links to be built in the future under ―Digital Gabon‖ as well as likely future
requirements for dark fiber. Consistent with best practice, the business case is also based
on the assumption that three ducts will be laid down, one for the fiber optic cable and two
spares for future cables or if required by works on the infrastructure. Due diligence on the
CAPEX (analysis of recent information obtained in the context of the ACE and Libreville
– Port Gentil project, international benchmark, etc.) was performed and the base case sets
values that cater for the specificities of the project (higher costs associated with laying
fiber alongside railway tracks) and with the small size of the Gabonese market (higher
costs for services).
Sites and Buildings amount to 10% of total CAPEX, reflecting lower expect costs in the
remaining of the country compared to Libreville and Port Gentil.
Transmission equipments amount to 5% of total CAPEX, with unit prices broadly
consistent with available costing information from suppliers.
Network supervision amount to 1% of total CAPEX, with unit prices broadly consistent
with available costing information from suppliers.
Project management and training amount to 9% of total CAPEX, based on the
conservative assumption that GoG will not award a turnkey contract, but will award
different tenders (e.g. for Civil works and Fibers, for Sites and Building, etc.) 106
.
Figure 24: CAPEX estimate for Phase I of the national backbone
Civil works and Fiber Length
(km)
Unit price /
km (EUR)
Total price
(EUR)
Total price
(US$)
% of total
CAPEX Civil work alongside
existing railways
646 20,000 12,919,300 16,924,283 43%
Civil work alongside
existing roads
480 16,000 7,680,000 10,060,800 26%
Fiber provision and lay
down
1,126 2,000 2,251,930 2,950,028 7%
Subtotal Civil works and
fiber
1,126 20,295 22,851,230 29,935,111 76%
Sites and Buildings units
Unit price
(EUR)
Total price
(EUR)
Total price
(US$)
% of total
CAPEX Type 1 - 125 m2 2 304,898 609,796 798,833 2%
Type 2 - 55 m2 1 152,449 152,449 199,708 1%
Type 3 - 25 m2 12 114,337 1,372,041 1,797,374 5%
Type 4 - 5 m2 24 30,090 731,755 958,599 2%
Subtotal Sites and
Buildings
39 2,866,042 3,754,514 10%
106
Technical assistance under the PPA will support GoG in choosing the most appropriate tender strategy and to define with
SETRAG the most economical works procedure along the railway tracks (See: Annex 2: Detailed Project Description).
103
Transmission
equipments
units
Unit price
(EUR)
Total price
(EUR)
Total price
(US$)
% of total
CAPEX Type
1:DWDM+MUX+Router
2 121,959 243,918 319,533 1%
Type
2:OADM+MUX+Router
1 60,980 60,980 79,883 0%
Type
3:OADM+MUX+Router
12 45,735 548,816 718,950 2%
Type
4:OADM+MUX+Router
24 30,090 731,755 958,599 2%
Subtotal Transmission
equipments
39 1,585,470 2,076,965 5%
Network supervision units
Unit price
(EUR)
Total price
(EUR)
Total price
(US$)
% of total
CAPEX NMS 1 22,258 22,258 29,157 0%
Synch. Primary + Secondary 1 68,602 68,602 89,869 0%
Fiber testing equipment 1 65,248 65,248 85,475 0%
Subtotal Network
supervision
3 156,108 204,501 1%
Project management
and training
Total price
(EUR)
Total price
(US$)
% of total
CAPEX Project management 2,286,735 2,995,623 8%
Training 304,898 399,416 1%
(EUR) (US$) % of total
CAPEX
TOTAL CAPEX 30,050,482 39,366,132 100% Average CAPEX per
km
26,689 34,962107
13. Assumptions of financial analysis are as follows on a study period of 15 years. Scenario
4 is the base scenario. Scenario 6 simulates the impact of a higher Monthly price per Mbit –
other customers on the base case whilst Scenario 5 simulates the impact of a shorter length of the
network (without compromising key objectives of the Phase I of the national backbone).
Scenario 1, 2 and 3 enable to simulate the impact of project costs higher than budgeted,
combined in Scenarios 1 and 2 with higher Monthly price per Mbit – other customers.
107
Average Cost Per Km To Deploy Fiber Optic Networks (Excluding Highest and Lowest) was estimated according to data
available to the Bank’s ICT unit at 27,846 US$ per km..
104
Figure 25: Assumptions of economic and financial analysis for connectivity on Phase I of the
national backbone
Key parameters Units Scenarios
1 2 3 4 5 6 Exchange rate
1 Euro = XAF 655.957 655.957 655.957 655.957 655.957 655.957
1 Euro = US$ 1.31108
1.31 1.31 1.31 1.31 1.31
CAPEX BB National
Phase 1109
Civil work costs per km
along existing railways US$ 23,120 30,360 30,360 27,600 27,600 27,600
Civil work costs per km
along existing roads US$ 27,600 24,840 24,840 22,080 22,080 22,080
Discount rate % 15% 15% 15% 15% 15% 15%
Scope of Phase I
Base case
(1,126 km)
Base case
(1,126 km)
Base case
(1,126 km) Base case
(1,126 km)
Koulamoutou
connected
directly to
Lastourville
and not via
Franceville
(1,015 km)
Base case
(1,126 km)
Initial Growth Rate of
GoG’s demand % 10% 10% 10% 10% 10% 10%
Annual growth rate of
GoG’s demand from
2020 % 10% 10% 10% 10% 10% 10%
Annual increase of
operating staff costs in
the OpCo110
% 3% 3% 3% 3% 3% 3%
Monthly price per Mbit US$ 400 540 200 200 200 390
Monthly price per Mbit
for GoG (bulk capacity) US$ 50 50 50 50 50 50
Annual decrease in
monthly price per Mbit
% 3% 3% 3% 3% 3% 3%
14. Phase I of the national backbone is a project that will result in a suitable economic
return to Gabon. All scenarios show positive IRR after 15 years, even in adverse conditions
caused by project costs higher than budgeted. All but one scenario have a positive NPV,
indicating an IRR after 15 years equal or greater than 15%. The project would be cash-flow
positive between 2017 and 2019 depending on the scenario. In the base case scenario 4,
108
Estimated value for 2013-2015 period. 109
CAPEX estimate do not include the share of the interests of the IBRD Loan to be allocated to the BB National component. If
estimated interests would be allocated 50/50 to the two components (catering for higher profitability of the ACE component), the
situation would be comparable to scenario 3. 110
Initial operating costs based on 30 people located on 3 sites (Libreville, Franceville, Oboué) with 8 cars, with subcontracting
provisions for Civil Works and Transmission Equipment assistance.
.
105
assuming a discount rate of 15%, the project is estimated to have a NPV of US$0.3 million over
15 years and an IRR of 15%, breakeven payback occurring in 2019. The impact of GoG’s
demand not materializing has also been simulated: assuming half of the expected initial
connectivity needs and annual growth rate (initial and from 2020) of 5%, the IRR would be 12%
and the NPV minus US$4.6 million. The financial analysis provides GoG and private sector with
a methodology to define the appropriate Price per Mbit for a given Monthly price per Mbit for
GoG (bulk capacity) enabling to achieve an IRR of 15% after 15 years and a NPV equaling 0, if
so wished by GoG and private sector.
Figure 26: Results of financial analysis for connectivity on Phase I of the national backbone
Scenario Total
CAPEX
Monthly
price per
Mbit
IRR
after 15
years NPV
(US$) (US$)
(US$) 1 45,266,189 400 26% 24,629,384 2 42,316,160 400 20% 9,679,164 3 42,316,160 200 14% -2,104,763 4 39,366,132 200 15% 293,181 5 36,539,058 200 16% 2,167,512 6 39,366,132 390 28% 27,968,666
106
Annex 8: CAB Program Background and Vision
AFRICA: Central African Backbone - APL4 - Gabon Project (CAB4 GA)
1. The Central African Backbone Program (CAB) is a World Bank Group regional
instrument aimed at catalyzing private sector investment to improve connectivity in Central
Africa. The World Bank CAB Program is designed to provide broadband connectivity in Central
Africa to all capital cities, main secondary cities and establishing redundancy linkages which is
estimated at a cost of about $700m. Broadband access and international and national traffic in
the region and countries targeted are expected to increase, while bandwidth costs and broadband
access prices for end-users are expected to decline rapidly. By the end of the program, all
capitals and major cities in Central Africa should be linked to the global Information and
Communications network through competitively priced high-bandwidth connectivity. Traffic in
the region is expected to increase by at least 36% CAGR111
, and bandwidth price projected to
start at around US$300/Mbit in 2010 at retail level and rapidly decline thereafter. This in turn
should lead to lower prices for telephone services and better access to the Internet, which will
significantly improve foreign and local private investment opportunities in the region, decrease
the cost of doing business and increase the prospects for job creation and wealth generation
while enabling countries to reap the benefits of ICT as a platform to deliver services to their
citizens and support natural hazards and emergency management systems.
2. The proposed amount of IDA and IBRD contribution for the CAB Program is $215m
over a ten-year period. The CAB Program is aiming at leveraging additional $97.8m from the
private sector. Other financing will be contributed and leveraged through other institutions (e.g.
AfDB and others). The CAB program is structured as both a horizontal and vertical APL.
Following APLs have already been discussed and approved by the Board: APL1-A (vertical) on
September 24, 2009, APL1-B (vertical) on June 30, 2011, APL2 (horizontal) on January 12,
2011 and APL3 (horizontal) on May 25, 2011. The World Bank Group is well placed to
contribute in the context of a multiple development partners’ effort: the WBG has been involved
in the CAB program since 2005. The Declaration of the CEMAC heads of state adopted in May
2007 called explicitly for WBG financial support for the implementation of the CAB program.
The overall program has been formulated with other key stakeholders and DFIs (the AfDB
joined the initiative in 2007 and is providing parallel financing for the CAB Program; the
African Union (AU) is also playing an important role in facilitating inter-governmental
cooperation and policy harmonization, in conjunction with the CEMAC, moreover, the Islamic
Development Bank and Japan International Cooperation Agency expressed their interest to
participate to the Project.
3. Project development objectives for CAB. The CAB Program development objectives
are to contribute to increase geographical reach and usage of regional broadband network
services and reduce their prices. The program will seek to achieve the objective by focusing on
investments linked to fostering open and cost-effective access to communications infrastructure.
The main development outcomes will include: (i) support opening up the telecommunications
111
Compound annual growth rate
107
market to competition, improving policies and regulatory framework, (ii) support the
development of infrastructure with a secondary impact on the market through reducing the cost
of broadband services and making them more accessible, (iii) improve efficiency of transaction
processed through electronic e-government services and improved user perception of services
through electronic application. Result indicators will be defined accordingly and in order to
comply and be consistent with ICT Core Sector Indicators and Definition as defined under the
Bank’s project coding system as of December 2009.
4. Menu of Options. To maximize flexibility, client-responsiveness in a multi-country
environment and the specific national situation of each country (in terms of existing
infrastructure or policy environment), CAB has been designed as a menu of options which
individual Governments choose from in order to package their CAB operation. The individual
projects under the program will therefore include a customizable set of activities which have
been grouped under four broad headings or components, described in more detail below.
5. Regionality for the purpose of using the Regional IDA envelope. Following
discussions with Financial Resource Management, all of the options eligible for CAB financing
have been deemed regional in nature for the purpose of qualifying for the use of the Regional
IDA envelope – with the exception of eGovernment Applications (if applicable), which have to
be funded solely from the individual country national IDA allocation.
6. Guiding principles. The following principles will guide the design of each component
of the proposed project: (i) utilizing a programmatic approach with detailed phasing of activities;
(ii) incorporating a results-based Monitoring and Evaluation framework; (iii) leveraging Public
Private Partnerships; and (iv) leveraging participatory approaches and harmonization with
development partners. Based on the above considerations, the proposed operations can cover the
following four components.
7. Component 1 - Enabling environment at the regional and national levels – This
component will include the following activities : (i) Modernize and harmonize legal and
regulatory framework the Information Communication Technology (ICT) sector and the
Information Society; (ii) Strengthen capacity of public key stakeholders (i.e. Ministry and
independent regulatory agency); (iii) Promote a pro-competitive environment (i.e. develop
regulatory tools, liberalize the telecom sector, support introduction of new service providers,
restructure and privatize public incumbent operators, PPP promotion) to maximize benefit from
the regional backbone; (iv) Strengthen M&E capacity.
8. Component 2 – Connectivity – This component will include the following activities: (i)
Finance the national infrastructure for the CAB including fiber-optic cables (with a potential
contribution for a submarine cable), terminal equipments, switches, to guarantee the
establishment of an open access network (open to all operators) on the basis of PPPs, leveraging
private sector investment; (ii) Finance the purchase of capacity on the CAB for targeted users
(schools, universities, hospitals eGovernment use) with discounted capacity prices; (iv) Support
to extend ICT in rural areas on the basis of PPPs and/or with competitive award of subsidies
(including country-specific innovative demand stimulation programs such as Digital Villages and
the SMS eService programs)
108
9. Component 3 – Good Governance and Transparency, E-Government and Flagship
ICT applications – This component will include the following activities: (i) Finance the
establishment of government Virtual Private Networks (VPNs) to collect all the government
communication needs (voice and data) to be routed via the CAB and the establishment of
national and regional Internet Exchange Point (IXP), (ii) Support the relevant government or
public authority to ensure that the ccTLD is being administered in the public interest, within the
framework of its national public policy and relevant laws and regulations, and (iv) Deploy
flagship applications for which country champion and commitment have been identified to
improve internal systems, deliver services more efficiently and effectively, and make
information & services more accessible to the population.
10. Component 4 – Project Management – This component will consist of support to
finance management related issues at the Project level. Depending on the specific
implementation arrangements for each country, this component may include elements such as
human resources support with management, procurement, financial management, M&E, internal
and external audit, and communications expertise, operating expenses and equipments.
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GABON
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 40 80
0 20 40 60 80 100 Miles
120 Kilometers
IBRD 33408
SEPTEMBER 2004
GABONSELECTED CITIES AND TOWNS
PROVINCE CAPITALS
NATIONAL CAPITAL
RIVERS
MAIN ROADS
RAILROADS
PROVINCE BOUNDARIES
INTERNATIONAL BOUNDARIES
