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MOZAMBIQUE eGOVERNMENT AND COMMUNICATIONS INFRASTRUCTURE

PROJECT (MEGCIP)

Implementation Support Mission, May 18-22, 2015

Aide Memoire

1. A World Bank team conducted a supervision mission between May 18-22, 2015 to support

the Mozambique e-Government, Communications and Infrastructure Project (MEGCIP),

under the Regional Communications Infrastructure Program (RCIP) Phase 3 (P111432).

2. The Mission was led by Isabel Neto (Senior Operations Officer, GEEDR) and Doyle

Gallegos (Lead ICT Policy Specialist, GTIDR). It was supported by Casey Torgusson

(Operations Officer, AFCRI), António Chamuço (Senior Procurement Specialist, GGODR),

Elvis Langa (Financial Management Specialist, GGODR) and Salma Chande (Program

Assistant, AFCS2).

3. The main objectives of the mission were: (i) to meet the new authorities following the

elections in late 2014; (ii) to review and discuss progress against the short term priority

actions and strategic outcomes targets identified during the November 2014 mission and to

review implementation progress more broadly, including performance on procurement,

financial management, disbursement, and monitoring and evaluation; and (iii) to work with

the team to advance large priority contracts still undergoing procurement.

4. The team wishes to thank the Ministry of Science and Technology, Higher Technical

Professional Education (MCT), Ministry of Transport and Communications, Ministry of

Justice (MoJ), Mozambique National Institute of Communications (INCM), National

Institute of ICT (INTIC), and other stakeholders met during the mission for facilitating the

work of the mission. This aide-memoire summarizes the findings and recommendations of

the mission.

A. PROJECT STATUS SUMMARY

5. Disbursements and commitments. As of June 1, 2015, total disbursements stand at SDR

14.52 million (US$20.21 million equivalent), representing 69% of the credit of 20.9 million

SDR (US$29.01 million equivalent). 92% of project funds are currently committed under

signed contracts, a significant rise from 76% as of the November 2014 mission.

6. Key Achievements to Date.

(a) Increased Sector Competitiveness and Access through award of the third mobile license

and regulatory reform/strengthening: The introduction of the third mobile operator –

Movitel - with support from the project Movitel has had a significant impact on

availability of voice and broadband services and pricing in the market, including reaching

rural areas in most of the country, which previously did not have any coverage. Other

operators have been rolling out extensive new networks and lowering costs to compete.

The project has supported the government in the development of regulatory tools for

licensing and cost modeling of telecommunications services in Mozambique already in

use, with the development of a new telecommunications strategy (pending approval by

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the Council of Ministers) and support for the development of updated legislation for the

telecommunications sector (pending parliamentary approval).

(b) Increased Broadband Capacity and Access for Government, Public Institutions and

Citizens in Rural Areas: Through the purchase of three STM 1s (155 Mbps each), the

project has tripled the Government Electronic Network (GovNet) international capacity

to 465 Mbps, that is an increase by 310 Mbps from its initial capacity of 155 Mbps, and

provided 310 Mbps international capacity to the Mozambique Research and Education

Network (MoRENet), connecting higher education and research institutions throughout

the country. 25 Community Multimedia Centers (CMCs) have been established in rural

areas throughout the country with the support of the project. 34 CMCs are currently

connected to high quality internet service through project support, with completion of

additional links under implementation to connect all 54 CMCs (some of the CMCs have

been established through financing outside the project). The Internet connections

provided to the CMCs have benefitted from the extensive fiber rollout to all provinces

and pricing reductions resulting from launch of the third mobile operator and increased

competition.

(c) Improved Government Efficiency and Support for Services Applications: The project has

purchased 6,000 licenses of Microsoft products for government desktops and servers,

utilizing a new approach which achieved significant costs savings. The project has also

purchased IT and telecommunication equipment which allowed the extension of GovNet

to an additional 25 districts – thus extending coverage to a total of 322 government

institutions at central, provincial and district levels – and has financed the increase of the

storage capacity of the INTIC Data Center1. The project has also purchased IT equipment

for the Integrated Platform for the Provision of eGovernment Services to the Citizen

(eBAU) which has enabled the delivery of streamlined services to the citizen,

significantly improving efficiency and transparency of the system. The project is also

supporting the deployment of the Land Information Management System in six provinces

(Maputo, Gaza, Inhambane, Sofala, Manica and Tete) by purchasing IT equipment and

providing technical assistance and capacity building. As a result of this support,

significant improvement has been achieved in the digitization of the DUAT applications

and the land information data base.

7. Progress against PDO indicators and PDO rating. Despite earlier implementation delays,

the project is largely on track to meet its development objective thanks to rapid sector

development facilitated in part by the project. Most of the targets for the original PDO

indicators have been met or surpassed, including international internet bandwidth, Internet

user penetration, and teledensity. While not yet on target, wholesale capacity costs are now

declining sharply, dropping by 50% between 2013 and 2014. As a result, progress toward

achievement of the PDO is maintained as Moderately Satisfactory. A snapshot of

progress toward PDO targets is included below. Looking ahead, the mission encouraged

the project team and government to focus on ensuring financial and institutional

sustainability of project activities post closure.

1 While GovNet has quickly expanded throughout Mozambique the quality of the network is a concern.

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8. Project implementation rating. The project has continued to make progress on major

procurements reflected in the rise of total signed commitments from 76 to 96%. Therefore,

the implementation performance rating has been maintained as Moderately

Satisfactory. However there have also been significant delays, partly as a result of change in

government, but partly also linked to the heavy administrative burden and processes to be

followed with the ministry and the government at large. The mission highlighted reputational

and financial risks related to ongoing delays in completion of payments for contract

deliverables, reflected in the lower than anticipated disbursement rate, and urged the team to

accelerate decision making and administrative procedures as much as possible so that the

project activities can still be implemented by the closing date.

B. SUMMARY OF KEY DISCUSSIONS AND RECOMMENDATIONS

9. Support from new government on project activities. The mission had the pleasure to meet

the new Minister for Science, Technology, and Technical, Professional and Higher Education

and to discuss the activities included in the project. The team notes the minister’s full support

to the activities and objectives of the project, as restructured.

10. Exchange rate losses and need for prioritization of activities. The project has recently lost

over US$1m due to Special Drawing Rights (SDR)/$US dollar exchange rate losses. As such,

the project team has had to cut several activities in the project. The priority for the use of

Outcome Indicator Target & Current Value

Volume of int’l traffic using proxy: International Internet bandwidth (Mbps)

Target: 1,700

Target Surpassed: 5,725 Mbps

Internet user penetration (% of total population)

Target: 5%

Target Surpassed: 7.4% in 2013 (latest data available from ITU, expected to have risen even further since)

Access to internet services (number of subscribers/100people)

Target: n.a (no target given)

Target has risen from 0.6% in 2010 to 5.6% in 2013 (latest data available from ITU, expected to have risen even further since)

Access to telephone services (fixed mainlines plus cellular phones per 100 people) [‘total teledensity’]

Target: 33%

Target Surpassed: 56% estimated in 2014

Average monthly price of wholesale international E1 capacity link (US$)

Target: $800

Target not met: $2,040 (though down from $9,000 in 2008 and $4,056 in 2013). Results of recent government capacity purchase contracts and other anecdotal evidence suggests significant further reductions not yet reflected in official data

User perception of quality of public services (%) (as

percentage of targeted population)

Target: 50% at end of project

n.a (will be collected as new e-services come online in the next year)

Volume of yearly electronic records/events processed with the eGovernment applications (using Lands and Civil Registration systems)

10,000 in year 4; 25,000 by end of project

Target not met: 9,678 in 2013 (expected to significantly accelerate as applications come online from current pilot phases)

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funds and the contracts still to be financed after the cuts are presented in the procurement

plan in Annex 2. It is therefore imperative that MCTESTP monitors the exchange rate

fluctuation in order to avoid commitments beyond available funds.

11. Need to accelerate and finalize project implementation. With the project closing date fast

approaching in little over a year (June 30, 2016), the project team is strongly encouraged to

swiftly implement all activities yet to be finalized: the team should aim to sign any remaining

contracts within the next 3-4 months and start closing contracts so that all project activities

can be finalized well in advance of the closing date. In that regard, the mission urged the new

management at the ministry and his team to accelerate decision making and administrative

procedures as much as possible so that the project activities can still be implemented by the

closing date.

12. Focus on key results and start preparations for the Implementation Completion Report

(ICR). As the project activities come to a close the project team is encouraged to focus on

activities that can enhance the project results (approve any texts/strategy outstanding, focus

on sustainability, etc). The team should also start collecting any data and information for

preparation of the Implementation Completion Report (ICR), which is due to be prepared

ahead of the project closing.

13. Possible follow-up to the MEGCIP project. The mission took good note of the intention by

the MCTESTP and MTC/INCM of requesting follow-up support after the completion of

MEGCIP. Such areas could include follow-up or expansion of strategic initiatives currently

underway. For example the national broadband strategy is just now being initiated.

Resulting from this will be a series of strategic decisions (e.g. infrastructure sharing,

alternative operating and business models, investment requirements, etc.) and activities to be

implemented. Other examples include further development of the e-Bau platform into a

comprehensive government/enterprise system architecture, as well as the expansion of the

land and civil identity registries as the basis for expanded ease and widespread use of e-

government services. Cybersecurity was not addressed in the MEGCIP but now requires a

higher priority and accelerated assessment and implementation plan due to the heightened

risks an exposure to the country

C. PROJECT RESTRUCTURING

14. Project Extension and Restructuring. Since the previous mission, the project was

restructured to extend the closing date from February 28, 2015 to June 30, 2016. The

restructuring also made adjustments to the results framework (increasing targets for a number

of indicators which have been surpassed to reflect the additional impact expected during the

extended implementation period, dropping indicators no longer relevant, and adding

additional indicators to better reflect activities undertaken) and adjusted the project

component descriptions to reflect actual activities executed and planned.

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D. SUMMARY OF DISCUSSION ON PROJECT COMPONENTS AND ACTIVITIES

D.1 – Enabling Environment/Technical Assistance (Component 1) – Rating: Satisfactory

15. This component supports the introduction of new legislation, regulations, policies, and

standards that may be necessary to enable sector reforms and competitiveness. It also

finances technical assistance, including support for the launch of the third mobile operator.

Current Issues for Discussion:

Legislation

16. The revised Telecommunications Act, developed with technical assistance financed by the

project is still pending consideration by Parliament. The legislation was previously

introduced to Parliament, but subsequently went back to Cabinet for review under the new

administration. The legislation has been cleared by the new Cabinet and the office of the

Prime Minister has now sent the law and financial impact assessment to Parliament for

consideration. A presentation on the draft legislation by INCM is being scheduled and it is

anticipated that a vote will take place in the current session. The mission encouraged the

Ministry of Transport and Communications to follow up closely to ensure a timely vote.

Quality of Service

17. Since the previous mission the consultancy to develop a Quality of Service testing

methodology has been completed and a first round of testing was completed in the greater

Maputo area. INCM will now use this methodology to regularly assess quality of service

throughout the country and use the results to inform regulatory action and policy making

going forward.

Telecommunications Strategy and Broadband Strategy

18. The draft Telecommunications strategy which was developed with support of the project is

currently being reviewed by the Council of Ministers. It was delayed under the previous

government pending passage of the revised communications act. The two items have now

been decoupled, allowing consideration/approval of the strategy to proceed independently.

The procurement process for the consultancy to develop the Broadband strategy is underway

with selection of the consultants and signing of the contract expected by mid-July and

completion of the Strategy by March 2016.

Digital TV Migration

19. The project has purchased equipment (digital emitters) to support the pilot phase of the

migration from analog to digital TV in Mozambique, freeing up spectrum for other more

valuable telecommunications uses. The equipment is expected to be delivered by August

2015, and will be deployed first to border areas to ensure that there is no interference from

Mozambican analog broadcasts affecting bordering countries. The government is pursuing

financing for the remaining equipment needed to provide full national coverage and complete

the switchover.

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Strategic Telecommunications Infrastructure Map & Database (SGIT)

20. Development of the SGIT is now underway, with the inception report delivered and the

specifications for software and hardware are being defined. It is expected that the system

will be completed and data populated by end January 2016.

D.2 – Connectivity (Component 2) – Rating: Moderately Satisfactory

Mozambique Research and Education Network (MoRENet) (Component 2a & 2b)

21. MoRENet CEO and Institutional Arrangements. Since the previous mission the

MoRENet CEO has been fully onboarded. A well-defined plan for implementation of

remaining investments and formalizing the institutional arrangements governing MoRENet is

being executed. The five institutions to be represented on the MoRENet board have been

identified and invited to nominate a board representative. All the institutions have designated

their representatives and the board has been formally appointed through a ministerial decree

in June 2015. The first priority of the new Board will be to review, revise and endorse an

institutional structure (a draft has been created by the MoRENet team), including guidelines

for membership, procedures, obligations, etc. This will then need to be taken to a vote by the

general assembly of all members. A MoRENet workshop is also planned for November

2015 in conjunction with a scheduled meeting of the UbuntuNet Alliance in Maputo. This

will be an opportunity to introduce existing and potential members to the benefits of

MoRENet membership and best practices and new developments of National Research and

Education Networks globally. A target of 80 member institutions has been established for

the first year. The mission strongly supported the proposed institutional development plan

and was encouraged by the accelerated pace of implementation and improved prospects of

long term sustainability. Over the medium to long term the mission encouraged the team

to provide additional focus on increasing the value proposition of MoRENet membership

by developing more value-added services to compliment the provision of connectivity.

22. Connectivity and Network Equipment Contracts. The contract for national connectivity

for the MoRENet institutions is under implementation, to be completed in 3 phases. The first

phase is expected to be completed by end May 2015 and provide connectivity for 35

members in the greater Maputo area. The second phase will connect members in Gaza and

Inhambane provinces as well as bring connectivity to points of presence (POPs) in Beira,

Tete, Nampula and Lichinga Provinces. Phase 3 will connect the remaining members to the

POPs. The contract for installation of wireless LANs on 16 member campuses is also under

implementation. Due to delays in procurement process for the additional equipment needed

to connect the universities to the national network, there is concern that bandwidth may be

available at some points of presence before the equipment is installed which will enable its

usage. To minimize this impact the team intends to temporarily extend the contract with

TDM which is currently providing connectivity to some universities so that there is no lapse

in coverage. Members have also been advised of the delays and have been invited to use

their own equipment to connect where this is available. The mission recommended

expediting the contract award and signature process for the remaining equipment

contract.

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23. Additional Challenges. Human resources, facilities and equipment constraints have led to

challenges in efficient operations. These include a lack of a sufficient numbers of engineers

on the project team, lack of vehicles, phones and videoconferencing equipment to support

operations in Maluana (70km from Maputo) and supervision and servicing of operations and

connectivity rollout throughout the country. While the government has provided a building

to house the operations and datacenter in Maluana, tenant fit-out is also needed to complete

the headquarters (establish working space, data center and VC rooms). The mission

supported provision of project resources to address these constraints and encouraged the

team to proceed with the related procurement processes with urgency. However, it was

encouraged to consider re-tendering the tenant fit-out contract with the aim of

encouraging additional bidders and a more competitive price quotation as the current

financial proposals are very high.

Community Multimedia Centers (CMCs) (Component 2e)

24. Overall Implementation Status. 54 CMCs have been established nationwide, 25 of which

have been supported through MEGCIP (exceeding the original target of 20). The contract for

Internet connectivity from Movitel is under execution which will provide all CMCs with high

quality bandwidth. As of March 2015 32 CMCs were already connected, with the remaining

CMCs expected to be completed shortly. The project team is following up with Movitel to

complete the remaining connections and rectify any problems. The contract for purchase and

installation of new radio transmitters is also under implementation, with the first lot of 22

transmitters received and installed – targeting the locations without a functioning transmitter.

The second lot of 34 transmitters is expected to be delivered before the end of May 2015.

The contract with CAICC to support content development has been signed and its

implementation is just starting. To date, over 10,000 citizens have received various forms of

computer and other trainings at the CMCs (some to certification level). 42,000 citizens have

accessed the internet and 102,000 citizens have accessed other services (photocopying, etc.).

Citizens have reported using the internet connectivity to access telemedicine services and

diagnoses, agricultural extension and market information.

25. Sustainability of Business Model and Project Leadership. Sustainability of the CMCs

remains a significant and growing concern after the MEGCIP project closes. The project

previously sought to recruit a business development specialist with a mandate to improve the

sustainability of the CMCs by working with individual CMCs to develop new business

models that include revenue generating services, as well establishing as a pairing program

with private sponsors. Unfortunately the recruitment process failed to identify a suitable

candidate. Since the previous mission, the CMC project coordinator has also been

appointed to a new position within government. These vacancies have significantly delayed

plans to improve the sustainability of the CMCs. A decision has been taken that the program

will now move to the Technology Transfer and Commercial Development department. The

Director of the department will then be responsible to appointing technical staff to manage

the program. The mission encouraged the Government to complete the

appointment/recruitment process for CMC management and support staff with urgency.

The ministry was going to explore the option of appointing current ministry staff working

in other activities, or also exploring synergies between the MoRENet management team .

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The government was also encouraged to prioritize ensuring sustainability of current CMC

sites before further expanding the program.

26. Despite these disruptions, there have been some successes including signing of an MOU with

ENH (Gas Company) to support the Palma CMC by providing equipment, training and

furniture. Amendments and extensions of the MOUs with MCel and Vodacom are in the

process of being negotiated and INCM has agreed to support 5 CMCs through the Universal

Service Fund. As discussed during the mission, INCM would also consider a request to

support internet connectivity at all CMCs through the USF once the current Movitel contract

expires. The mission encouraged the CMC team to get in touch with INCM to further

explore this possibility.

Mozambique Internet Exchange Point (MOZIX) (Component 2a)

27. Overall Status and Operational Model. Following long delays, the main institutional

hurdles to completing implementation and ensuring sustainability of this component have

now been resolved or are on a clear path toward resolution/completion. During the mission a

decision was taken at ministerial level to proceed with establishment of the MOZIX

association as a private, not for profit institution in line with international best practice.

(Establishment had previously been delayed due to preference by the government for a model

with either direct or partial government ownership or oversight of the IXP). The IXP is

currently operating informally, maintained and operated by CIUEM on a pro-bono basis,

utilizing its own facilities and absorbing all maintenance costs. Current traffic is in the range

of 300MB and all major ISPs and Mobile Operators are connected, with approximately 90%

of local traffic being routed through the IX. This has resulted in significant savings by

operators on international bandwidth and improved response times. The formal

establishment of the IXP will now allow the association to finance its operations (either

through member fees or in kind contributions) and scale up its activities, traffic and

membership. Clearance has also been given at the ministerial level to proceed with

procurement of the air conditioning system and back-up generator required to operate the IT

equipment previously purchased and installed under the project. (This decision was

previously delayed pending resolution on the institutional structure of MOZIX). The

mission encouraged the MOZIX association members to quickly complete the remaining

steps for legal registration (re-submission of the criminal background checks for the

founding member operators which have expired due to the delays). The mission also

encouraged CIUEM to transmit the specifications for the generator and for the MEGCIP

team to urgently proceed with the procurement process.

D.3 – e-Government Applications (Component 3) – Rating: Moderately Satisfactory

28. Overall Status. The eGov component addresses two main areas: eGovernment

Fundamentals to support the government’s cross-cutting and underlying activities for

interoperability and commonality of hardware, software and communications; and support

for targeted eGovernment Applications, particularly in Civil Registry and Land Management.

Progress is evident under all components, though some challenges persist.

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eGovernment Fundamentals & Targeted e-Gov Applications (Components 3a & 3b)

29. ‘Shared Services’ Consultancy. Under the ‘shared services’ contract, the selected

contractor - Novabase - is providing support to INTIC in operationalizing (i) the

eGovernment fundamentals component, including eGIF, horizontal integration and ESB, and

(ii) the Government Operations Service Center and capacity building (training).

30. Four of the five contract components are now completed, namely: (i) Structuring and Priority

Services; (ii) eGovernment Interoperability Framework (eGIF) and Platform (Microsoft

BizTalk has been adopted); (iii) Datacenter Technical Design, including specifications of

functions, HR requirements and training needs; and (iv) Training Proposal. The final

component, (v) development of electronic forms (eForms) Platform, has only been partially

completed. The status is unchanged since the last mission. Development of the planned e-

Form for the Land Information Management System (LIMS) continues to be delayed with

limited progress over the last 8 months. A decision has now apparently been taken to

continue pursuing development of the LIMS form, but discussions at the technical level at

DNTF were not conclusive. Also, and in order to do so, the contract with Novabase will need

to be extended. The mission encouraged INTIC and the MEGCIP team to proceed with

the contract extension and completion of the form with urgency.

31. Civil Registration. The mission met with the Ministry of Justice to review progress in the

development of the Civil Registration System Pilot Program. While the overall pilot is now

being funded by UNICEF and other donors, the MEGCIP project is supporting the effort

through additional technical assistance and equipment. Development of the system is nearly

complete, though significant challenges and delays persist. The MoJ demonstrated the

online portal and registration process to the mission, available at

http://civil.registos.gov.mz/crvs/. Most components are now complete, with the exception

of the death statistics module and the offline version of the system for use in absence of

connectivity. The target to ‘go live’ with the system in December 2014 as set during the

previous mission has been pushed postponed, with no new target set, though a work program

for completion of remaining elements and testing is in place.

32. MoJ had requested several areas of additional support from the project: Additional funds for

online training on systems administration, Secure Sockets Layer (SSL) certification,

consultancy for technical advisory to strengthen the information management system,

purchase of smart phones for field agents, and support in securing better connectivity to

headquarters. It was agreed that MoJ would send budgets and justifications for the requests.

With regard to the consultancy, ToRs should be shared with the MEGCIP team without delay

(this has been pending for many months). With regard to connectivity, INTIC confirmed that

the link was upgraded recently from 4MB to 10MB, but will conduct a site visit to determine

what the constraint is that is causing slow speeds. The activities to be financed may be

affected by the SDR/$US dollar exchange rate. The project will finance the purchase of IT

equipment for the three sites where the new information system will be installed, the training

of DNRN technical staff of IT, and the hiring of an international specialist to finalize the

development and rolling-out of the information system in the provinces.

http://civil.registos.gov.mz/crvs/

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33. eBAU. The project has also purchased IT equipment for the Integrated Platform for the

Provision of eGovernment Services to the Citizen (eBAU) which has enabled the delivery of

streamlined services to the citizen, significantly improving efficiency and transparency of the

system. All equipment has been installed and the system is working in Maputo. Expansion of

the system to other provinces is expected soon. The mission had the opportunity to visit the

eBAU installation in Maputo (see photos in Annex 5).

E. FINANCIAL MANAGEMENT (FM) AND PROCUREMENT ASSESSMENT

34. Financial Management. The FM rating is maintained as Satisfactory. The mission

reviewed the FM arrangements in place at the project and assessed the adequacy of its

control environment, funds flow, financial reporting and information systems and followed

up on the progress since last implementation support mission. It was observed that in

general, the project continues to work satisfactorily to remain in compliance with acceptable

Bank FM requirements.

35. As mentioned above, the mission noted that due to the fluctuations between the Bank’s

Special Drawing Rights (SDR) and USD, the project has been losing funds and it is therefore

imperative that MCTESTP monitors the exchange rate fluctuation in order to avoid

commitments beyond available funds.

36. The disbursement rate of the project is 69% and expected to increase in the next quarter

based on the current committed amounts. There are no delays in submission of Interim

Financial Reports (IFRs), and the quality continues to be satisfactory. The mission concluded

that internal controls continue to function in an adequate manner.

37. Procurement. The procurement performance of the Implementing Agency was assessed

during the mission and it continues to be rated as Satisfactory. The mission reviewed the

implementation progress of the agreed activities under the Project. While the implementation

is generally satisfactory, concerns were expressed in relation to the approaching Closing Date

of the project in around 12 months and the need to ensure that all on-going and just started

activities can be completed expeditiously.

38. In view of the reduced availability of resources due to the devaluation of the XDR, the

implementing Agency reviewed and re-prioritized the remaining activities and is in the

process of revising its procurement plan to align with this revised prioritization. It was agreed

that the revised procurement plan for the last 12 months of implementation would be

submitted to the Bank for final review and clearance by June 5, 2015.

39. The mission also discussed on-going complaints received under several project

activities/procurements, and the need to promptly address the complaints to avoid further

delays in the affected activities. The implementing agency agreed and issues are likely to be

resolved satisfactory to all parties.

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F. AGREED PRIORITY ACTIONS AND MILESTONES

Action Responsible Target Completion

Date

Finalize Selection Process and Award Contract for

Broadband Consultancy

MCTESTP/

INCM July 31, 2015

Finalize Procurement Process for MOZIX A/C and

Generator equipment

CIUEM/MCT

ESTP June 30, 2015

Appoint new Coordinator and technical staff to support

the CMC program

MCTESTP July 31, 2015

Submit TORs for CRVS consultant and budget for

additional activities for consideration

MoJ June 5, 2015

Completion of Land Information Management System

(LIMS) e-Form or Equivalent

Interim Steps

Extension of Novabase Contract

Confirm use of land eForm for shared services

consultancy

Finalize the remaining eForm and launch service

INTIC/DNTF October 31, 2015

June 30, 2015

June 30, 2015

October 31, 2015

Full operationalization of the Mozambique Research

and Education Network (MoRENet)

Interim Milestones:

Constitution of the Board of Directors

Connectivity in place at all participating

universities through Movitel Contract

Constitution of the General Assembly

WLANS in service

MCTESTP January 1, 2016

June 30, 2015

September 30, 2015

December 31, 2015

??

Sustainability of CMCs Significantly Strengthened

Interim Milestones:

New Director and Technical Staff Appointed to

oversee the program

Sustainability plan developed

Formal agreements finalized with private sponsors

of CMCs

MCTESTP January 1, 2016

July 31, 2015

September 31, 2015

6 by Aug 31, 2015

12 by Dec 31, 2015

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Begin providing technical assistance to CMCs to

develop new revenue generating services and/or

capitalize on revenue potential of existing services

(through Eduardo Mondlane University Contract)

August 31, 2015

Mozambique Internet Exchange (MOZIX) Legally

Established and Fully Operational

Interim Milestones:

Legal Establishment

A/C and Generator Equipment Procured and

Installed

MOZIX “Official Launch”

MCTESTP/M

OZIX September 31, 2015

July 31, 2015

August 31, 2015

September 31, 2015

Approval of ICT Strategy and Revised Telecoms

Legislation

MTC/INCM June 30, 2015;

September 2015

DISCLOSURE

40. The draft Aide-Memoire has been discussed and agreed with the government. The GoM has

consented to public disclosure of the Aide-Memoire in line with the World Bank’s access to

information policy.

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Annex 1: Progress against Short Term Priority Actions and Strategic Outcomes Targets

identified in November 2014 mission

Short Term Priority Actions

Action Responsible Target

Completion

Date

Status (May 2015)

Identify way forward on

CMC sustainability/private

sector pairing support

MCT November 30,

2014

Limited Progress. Support

agreements signed with 2

sponsors

Complete payment for

CMC business model

report delivery

MCT November 30,

2014

Complete

Submit Govt. official

restructuring request to the

World Bank

MCT/MoF December 15,

2014

Complete

Procure back-up

connectivity for the Civil

ID pilot program

MoJ/MCT December 31,

2014

Not Applicable.

Connectivity issues

addressed through INTIC

and TDM upgrading

connections to GovNet

Execution of IRU contract

($1.1m)

Interim Steps

Contract

countersigned by

Minister

Contract cleared by

Tribunal

Administrativo

First Payment

MCTESTP January 31,

2015

November

30, 2014

December

31, 2014

January 31,

2015

Complete

Execution of Digital

Emitters ($0.872 million)

Contract

Interim Steps

Approval of contract

by CREE

MCTESTP February 28,

2015

Dec 15,

2014

Complete. Delivery and

Installation in Progress.

14

Contract Signed

Contract cleared by

Tribunal

Administrativo

First Payment

Dec 31,

2014

January 31,

2015

February

28, 2015

Execution WLANs for

Universities ($1.5 million)

Contract

Interim Steps

Approval of contract

by CREE

Contract Signed

Contract cleared by

Tribunal

Administrativo

First Payment

MCTESTP February 28,

2015

Dec 15,

2014

Dec 31,

2014

January 31,

2015

February

28, 2015

Complete. Delivery and

Installation in Progress

Completion of Land

Information Management

System (LIMS) e-Form or

Equivalent

Interim Steps

Decision taken by

DNTF on whether to

develop the eForm

(DUAT) for LIMs

Selection of

alternative eForm

application (if

applicable)

Extension of

Novabase contract

Finalize the

remaining eForm and

launch service

INTIC/DNTF April 30,

2015

November

30, 2014

December

31, 2014

December

31, 2014

April 30,

2015

Incomplete. Decision

taken to proceed with the

DUAT (LIMs) form, but

no progress on

development and

technical team at DNTF

did not seem to be aware.

Novabase contract

extension not yet

approved (TBC).

15

Strategic Outcomes Targets

Agreed actions Target/Completion

Date

Full operationalization of the

Mozambique Research and

Education Network (MoRENet)

Interim Milestones:

Constitution of the Board

of Directors

Constitution of the General

Assembly

MOUs signed with

member institutions to

formally join MoRENet

Connectivity in place at all

participating universities

through Movitel Contract

Wireless LANs operational

at 16 Universities

June 30, 2015

Feb 28, 2015

Feb 28, 2015

20 by March 30,

2015

May 31, 2015

June 30, 2015

In Progress. Substantial

progress in last 6 months.

Expected to be finalized in

June 2015

Expected to be completed

by December 31, 2015

Completed (though will be

replaced through formal

membership agreements)

In progress, expected to be

completed by June 30,

2015. (Some universities

will not be connected until

related equipment contract

is implemented)

In progress. Survey and

designs completed. Waiting

on delivery of equipment

from vendor (vendor has

delayed). Expected to be

completed by June 30, 2015

Sustainability of CMCs

Significantly Strengthened

Interim Milestones:

Formal agreements

finalized with private

sponsors of CMCs

Begin providing technical

assistance to CMCs to

develop new revenue

December 31, 2015

6 by Feb 28, 2015

12 by June 30,

2015

February 28, 2015

Limited Progress

Formal Agreements signed

with 2 partners (as of May

22, 2015)

No progress (though some

informal assistance being

provided). Contract

16

generating services and/or

capitalize on revenue

potential of existing

services (through Eduardo

Mondlane University

Contract)

amendment to include this

scope has not been pursued.

Mozambique Internet Exchange

(MOZIX) Legally Established

and Fully Operational

Interim Milestones:

Final Business Model

Adopted

Legal Establishment

A/C and Generator

Equipment Procured and

Installed

MOZIX Formally

Launched

.

April 30, 2015

Feb 28, 2015

March 31, 2015

March 31, 2015

April 30, 2015

In Progress.

Business model accepted by

Ministry (private

association)

Pending (can now move

forward following ministry

approval of model in May).

Will require issuance of

new criminal background

checks (previously issued

versions have expired)

In process. Awaiting

approval of the Permanent

Secretary

In process (following legal

establishment). MOZIX is

currently operating

informally

Approval of Revised Telecoms

Legislation and ICT Strategy

Interim Milestones:

Legislation considered by

Parliament

ICT Strategy Approved by

Council of Ministers

March 31, 2015

Next sitting of

Parliament

First meeting of

Council of

Ministers after

approval of

Legislation

In Progress. Delayed

following transition in

Government.

Legislation re-introduced to

Parliament and expected to

be considered in current

session (was re-submitted to

Council of ministers and re-

introduced to Parliament

following change of

government).

Expected to be considered

in next meeting of Council

of Ministers

17

Annex 2: Signed Commitment and Revised Procurement Plan

Summary data

18

Contracts to be procured (‘wish list’ to be excluded):

19

Committed contracts under implementation:

20

Closed contracts:

21

Closed contracts (cont.):

22

Annex 3: FM Assessment

THE WORLD BANK Africa region

Financial Management Supervision Report

Regional Communications Infrastructure Program-Phase 3

EXECUTIVE SUMMARY

The mission reviewed the FM arrangements in place at the project and assessed the adequacy of

the its control environment, funds flow, the financial reporting and information systems and

followed up on the progress since last implementation support mission and noted that in general,

the project continues to work satisfactorily to remain in compliance with acceptable Bank FM

requirements.

The mission noted that due to the fluctuations between the Bank’s Special Drawing Rights

(SDR) and USD, the project has been losing funds and it is therefore imperative that MCTESTP

monitors the exchange rate fluctuation in order to avoid commitments beyond available funds.

The disbursement rate of the project is 69% and expected to increase in the next quarter based on

the current committed amounts. There are no delay verified in submission of Interim Financial

Reports (IFRs), these continue to be submitted on time and in a satisfactory manner. The mission

concludes that the internal controls continue to functioning in an adequate manner.

ISR FM Rating

The FM rating for the project is Satisfactory (S), per the attached detailed FM rating sheet for

the ISR. FM REVIEW: FINDINGS AND ACTION PLAN

Budgeting. The 2015 budget execution rate as of March 31, 2015 was about 14% to the State

Budget, as illustrated in table:

MEGCIP MTs

11200 Outras Despesas com Pessoal 8,331,728.90 796,271.10 7,535,457.80 10

12100 Despesas com Bens 4,584,600.00 409,799.93 4,174,800.07 9

12200 Despesas com Serviços 17,546,326.11 7,894,152.87 9,652,173.24 45

20000 Despesas de Capita l 68,532,977.94 4,863,679.99 63,669,297.95 7

98,995,632.95 13,963,903.89 85,031,729.06 14

Source: MEGCIP FMS

Grand Total

%DescriçãoCED Dotação Disponível Despesas Pagas Saldo

23

This is a somewhat a low budget execution mainly related to the delays in the approval of the

state budget as well as on some procurement processes.

Accounting. As envisioned, the project is connected through the government`s FM systems

such as e-SISTAFE to capture and summarize all of its financial transactions and also make

use of accounting procedures of the Government. The systems are also used for preparation

of quarterly reports to be submitted to the Bank in combination with excel spreadsheets.

The project works with a qualified and experienced financial manager responsible for all

aspects related to project FM, but the accountant has resigned. Given the amount of time left

until project closure, it may be useful for the project to replace the accountant.

Funds Flow. The amounts disbursed as a percentage of the total Credit 46010 is 69.45%. Withdrawal applications continue to be submitted soon after obtaining clearances from the Bank and

the project is commended for that.

Financial Reporting. The IFRs have been generally submitted timely and in a satisfactory

manner and there are no overdue IFRs. The reports have been presented in accordance with

the agreed formats.

External Audit. The field work for the audit for the calendar year ended December 31, 2014

has been completed by the TA, and a draft report has been provided to MCTESTP for

comments. No delays are expected on the submission of the final audit report to the Bank.

FM Action Plan

New Action Plan

Issues Agreed Actions By Whom By When

1. Audit report Submit December 31, 2014

audit report to the Bank

PIU June 30,

2015

Annex 4: Results Monitoring Framework

Republic of Mozambique

Ministry of Science and Technology

Mozambique eGovernment and Infrastructure Project (MEGCIP)

Monitoring and Evaluation Indicators

Arrangements for Results Monitoring at Country Level (Mozambique)

2 International Internet bandwidth is the contracted capacity of international connections between countries for transmitting Internet traffic. Data should be provided to INCM

by Internet Service Providers operating in Mozambique. If INCM cannot supply the information, the ISPs should be contacted directly.

Indicators

Baseline Target Values Data collection and reporting

2008

Revise

d

2009

YR1

Dec ‘10

YR2

Dec ‘11

YR3

Dec ‘12

YR4

Dec ‘13

YR5

Dec ‘14

YR6

Dec ‘15

YR7

May ‘16 Frequency

Data collection

instruments of

reports

Responsible

Party

Comments

PROJECT DEVELOPMENT OBJECTIVE (PDO) INDICATORS

Volume of int’l

traffic using proxy:

International

Internet

bandwidth2 (Mbps)

213 250 500 1,000 1,700 2,500 6,500

Yearly

[month]

INCM [data

available at

ITU,

TeleGeogra-

phy]

MEGCIP

team

Estimated by the

Project based on the

data collected from

the ISPs.

Main ISPs:

Moztel – 50Mbps

SEACOM - 850Mbps

(capacity 5150Mbps)

Teledata –

TV Cabo – 470Mbps

Mcel – 300Mbps

GovNET – 230Mbps

(Capacity 300Mbps)

Movitel – 1300Mbps

(Capacity 3500Mbps)

Vodacom – 350Mbps

Last update: August,

2014 1687.4 2665 4245

317.5*106

4620 5725

25

TDM – 1700Mbps

Internet user

penetration (% of

total population)

1% 1% 2% 3% 4% 5% 5% 8%

Yearly

[month]

INCM

[indicator

available at

ITU]

INCM

Updated the 2013

data. From the 2014

this data is still

unavailable (Awaiting

the ITU Measuring the

Information Society

2014 edition on

November).


2014 1.6 2.7 4.2 4.3 4.85 7.4% n.a.

Core indicator:

Access to internet

services (number of

subscribers/100

people)

n.a n.a n.a n.a n.a n.a n.a 6%

Yearly

[month]

INCM

[indicator

available at

ITU]

INCM

Updated the 2013

data. From the 2014

this data is still

unavailable (The ITU

Measuring the

Information Society

2014 edition on

November still have

the 2013 data) .


2014 0 n.a 1.6 n.a 3.7% 5.4% n.a.

Core indicator:

Access to telephone

services (fixed

mainlines plus

cellular phones per

100 people) [also

‘total teledensity’]

20% 29.48% 24% 27% 30% 33% 35% 60% Yearly

[Quarter]

INCM

[indicator

available at

ITU]

INCM

Estimated by the

Project based on data

collected from the

Telephone services

providers and the

Mozambique

population on 2014

(TDM, Mcel,

Vodacom, Movitel)


2014 21,83 27,77 32,62 34,46 35,63 47.16% 56%

Average monthly

price of wholesale

international E1

capacity link (US$)

$9,000 $6,000 $3,000 $1,000 $800 $500 $500

Yearly

[month] INCM INCM


2014 $3946.5 $4803.5 $4796.7 $2040 $2040

This price doesn’t

include the installation

fees. For Maputo the

26

3 Main service targeted for this indicator will be decided after first year of implementation, it might be the Civil Registry System or Internet connectivity at community

centers 4 The 2013 data consider the e-gov records at INTIC applications. DNTF has processed in 2013 - 1700 DUATs.

5 Esta em curso a harmonização (limpeza) da base de dados ACCESS e SIG (Geo-referenciação, digitalização de parcelas de DUATs em falta e conclusão da Base do

ACCESS ) para posterior migração destes dados para SiGIT / LIMS nas 6 províncias (previsto para inicio em Outubro/2013).

TDM change an

installation fee of

55000Mt (1833USD).

Core indicator: User

perception of

quality of public

services (%)3 (as

percentage of

targeted population)

n.a. n.a.

n.a. n.a. 30% n.a. 50% 50% Mid-Term

and Closing

eGovernment

survey INTIC


2014 n.a. n.a. n.a n.a

Volume of yearly

electronic

records/events

processed with the

eGovernment

applications (using

Lands Registration

systems)

0 0 10,000 25,000 25,000

Mid-Term

and Closing INTIC system INTIC


2014 700 5670 8200 9.6784 2498

DNTF5_The number

of digital DUAT's

(new data processed

on SiGIT: - 2498;

Civil Registration

system: 0 (the project

no longer directly

support the ID

registration system)

Core indicator:

Direct project

beneficiaries

n.a.

230.000

(female %

119 600)

690.000

(female

%

1.320.000

(female %

686.400)

1,320,000 Yearly

[month]

27

6 See annotated table on calculating direct project beneficiaries; who are defined as all people benefitting from training, from access to (improved) internet services at

universities, schools and CMCs. 7 ISPs operating in at least one province outside Maputo (excluding fixed and mobile operators)

8 Average price across providers. This core indicator replaces the original: Price of broadband Internet Access [1Mbps] for the purposes of this project only the price for

broadband connections is measured.

(number), of which

female (%)6

358.800)


2014 - 188162 289517

386044

(female

%

196882.4

4)

221666 (

female %

97533.04)

INTERMEDIATE OUTCOME INDICATORS BY COMPONENT

Component 1 – Enabling Environment

Number of

operational

telecommunications

service providers

(fixed, mobile +

ISPs7)

3+4 3+5

3+5 4+6 4+6 5+7 5+8 5+22 Yearly

[month] INCM systems INCM


2014 3+5 3+7 4+7 4+8 4+23

Monthly price of

E1 dedicated line

for 500km (US$)

$12,00

0

$

2208,7

$10,000 $8,000 $5,000 $2,500 $1,000 $1,000

Yearly

[month]

INCM systems

INCM


2014 $2,720 $ 3,091.5 $2778.4 $1308 $1080

TV Cabo – 39 000Mt

TDM – 36 000 Mt

Movitel – 26300 Mt

Teledata – 28310 Mt

This price doesn’t

include installation

fees.

Core indicator:

Retail price of

internet services

(per Mbit/ per

month, in US$)8

$140 $108.9 $90 $70 $50 $40 $30 $30 Yearly

[month]

INCM systems

INCM

28

9 I.e., more than >20Mbps


2014 $81,4 $102 $101.6 $95.6 $90

Price for a traffic

of 28Gb.

Average Price for a

monthly 3Gbit 3G

mobile data

subscription n.a n.a

$15

INCM systems

Last update:

January, 2015 17USD

Component 2 - Connectivity

Volume of traffic

going through IXP:

Maximum annual

bandwidth (Mbps) 2.8 2.8

3 6 12 20 28 250 Yearly

[month] INCM systems

CIUEM/M

OZIX


2014 20 Mbps 40 Mbps 43 Mbps 120Mbps 200Mbps

Number of

universities

campuses and

research

institutions with

access to

broadband9 0 1

3 9 12 15 20 50

Yearly

[month]

MCT/

MoRENet

MCT/

MoRENet

Last update: May,

2015 13 13 13 13 13 23

This data is going to

increase very soon due

to the expansion of the

MoRENet to 92

Institutions.

Number of CMCs

with Internet access 3 8i

3 5 10 20 30 50 Yearly

[month]

CMC program

system

CMC

program

Last update: May,

2014 0 1 5 6 50 51

Number of GovNet

POPs

143 160

150 200 300 400 500 500

Yearly

[month] INTIC system INTIC


2014 190 245 282 310 410

This figures actually

represent the number

of institutions/ sites

connected to the

29

Project Beneficiary Calculation:

Results Indicators Baseline

(2010) YR1 YR2 YR3 YR4 YR5 YR6 YR7 Frequency

collection

instrument

s

Responsi

ble Party Comments

# users in universities and

research institutions

benefitting from capacity

purchase financed in the

project 4890 7147 8344 9880 11230

yearly MoRENet

MEGCIP

team

# students in schools


purchased financed in the 0 93584 28365 11313 13515

yearly MINED

MEGCIP

team

GovNET. So far POPs

are 104 [11 at

Province level

(GPPoP) and 93 at

District level

(GDPoP).

Component 3 – eGovernment Applications

Number of sectoral

eGovernment

applications using

the Enterprise

Service Bus

0 0

0 0 1 2 5 5

Yearly

[month]

INTIC system INTIC

e-Bau is being

constructed using

the same

philosophy


2014 0 0 0 0 1

Cost savings of

introducing

framework

contract for

software licenses

across government

(contract

aggregation)

n.a n.a 30%

30

project

# users in hospitals


purchase financed in the

project 0 23450 25000 26270 26570

yearly MISAU

MEGCIP

team

# gov't employees in

departments benefitting

from capacity purchase

financed in the project 0

11 434 13 000 14139 19137

yearly

GovNet

(INTIC)

MEGCIP

team

# users in CMCs 0 51166 26530 33083 50083

yearly CMC team

MEGCIP

team

# Number of people

working on companies

incubated 0 0 0 0 0 0

yearly

MEGCIP

team

MEGCIP

team

# Number of people

benefitting from trainings

under the Project

(including eGovernment,

CMCs and incubator) 880 1381 116 1040 1131

yearly

MEGCIP

team

MEGCIP

team

DNTF: 5;

MCT –

MoRENet:3

CMCs: 1123

Number of direct

beneficiaries under the

project (sum of all the

above)

188162 289517 - 196882 221666

yearly several several

Share of female direct

beneficiaries

95962.6

2

150548.

84 XX% 386044 97533.04

Annex 5: Visit to eBAU installations during the mission

On May 22, 2015 the mission had the occasion to visit the eBAU service center in Maputo. Some photos

below showing the payment counter, a facility for receiving the public and bank office stations.

mozambique egovernment and communications …documents.worldbank.org/curated/en/...mozambique...

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