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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.
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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).
Last update: August,
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) .
Last update: August,
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)
Last update: August,
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
Last update: August,
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
Last update: August,
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
Last update: August,
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)
Last update: August,
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
Last update: August,
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
Last update: August,
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
Last update: August,
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
Last update: August,
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
Last update: August,
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
benefitting from capacity
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
Last update: August,
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
benefitting from capacity
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.