Highlights

The following projects are good examples of the Policy Division's work:

Tunisia Information and Communications Technology (ICT) Strategy

The study, a joint effort of CITPO and MNSIF, provides suggestions to the Government of Tunisia on how to develop the ICT sector in the country in a way that maximizes growth and employment creation. The study provides a roadmap for implementing the Government's vision of boosting ICT revenues from 3.5% to 8% of GDP by 2006. It employs an innovative methodology, based on the segmentation of the ICT industry into eight interdependent sub-sectors. The study strongly advocates infrastructure liberalization as the key to boosting revenues and job creation, and provides suggestions on how to enhance the impact of other enabling factors (human capital development, capital market modernization, technology incubators, and other measures to support SMEs). The recommendations of the study were elaborated following a participatory approach, founded on constant interaction between two teams, a Tunisian technical working group and the World Bank team. The study is considered a best practice in the MNA region.

Nepal Telecommunications Sector Reform Project

The Bank is   supporting the government in the provision of rural access and service which is associated with less attractive financial returns for the private operator.

Through the Nepal Telecommunications Sector Reform project focused on the licensing of a rural telecommunications service provider the Bank is supporting the government in the provision of rural access and service which is associated with less attractive financial returns for the private operator. To offset the high costs of constructing the new network, NTA, is following an international competitive bidding process to finance the capital costs of constructing the licensee’s network. The pre-qualified applicant that proposes the lowest capital subsidy will be awarded the license. The licensee will be authorized to provide telephone and other telecommunications value added services to the public in the Eastern Development Region of Nepal. The network roll out would be for 534 unserved VDCs with a minimum of 2 public access lines per VDC which will provide services to approximately 3.22 million people.

The project implements one of the pillars of the ICT Sector Strategy Paper, on extending service beyond the market, using a smart subsidy.   In addition, it is in line with the output based aid principles advocated under the Bank's PSD Strategy.

Nicaragua Telecommunications Reform Project

The Nicaraguan Congress approved the modifications of Law 210 to privatize ENITEL, changing the conditions of the privatization to give more flexibility to investors.   The Government opened the process of privatization and on August 31, 2001 the GoN awarded the bid to Telia-EMCE.   This privatization is an outstanding example of Bank supported sector reform in that this was the fourth attempt to privatize ENITEL and it was successfully undertaken during a highly contested election period .

OECS Telecom Reform Project

The project has had a strong influence in the emergence of a more competitive telecommunications sector in the Eastern Caribbean states.   A regional telecom regulatory agency, ECTEL, has been established and represents an innovative concept in inter-island cooperation with potential implications for other sectors.   The five countries have passed new telecommunications laws based on the model law prepared through project funds, one year ahead of schedule.   Full market liberalization is expected before the end of the Project.   Overall, there is a collective sense of achievement on the successful and innovative example of regional cooperation.   Other countries in the region have already expressed an interest to join ECTEL

The debate and dialogue spurred by the Project has also led to a constitutional challenge to the historical exclusivity arrangement of the incumbent operator. On April 7, 2001 The Organization of Eastern Caribbean States and the incumbent signed an agreement which paves the way for liberalization of the telecommunications market in the sub-region.   This historic event took place after many months of negotiations between the two parties.   The transition period to full competition and liberalization of the telecommunications sector shall be a minimum of 12 months starting April 1, 2001 and up to a maximum period of 18 months.

Indonesia: ICT Donor Agency and Private Sector Coordination

On April 25, 2001 the Government of Indonesia launched its Policy Guidelines and Action Plan for Information and Communication Technologies (ICT) Development. The Bank, through the Information Infrastructure Development Project, is helping to coordinate private sector and donor initiatives in ICT development with TELEMATIKA, the Government agency responsible for ICT. Particularly urgent, given the difficulty in obtaining telephone lines and the severely constraining impact this was having on national connectivity, is the need for creation of an independent regulator and more competition in the telecoms market. Various donors are providing technical assistance in this area, including the Bank through the Telecommunications Sector Modernization Project, as well as in developing human capacity for ICT development. The potential of ICT in accelerating rural and community development is another area where multiple initiatives are underway at the central and regional levels. Indonesia is the first country where ICT investments and programs of the private sector and bilateral and multilateral agencies is being coordinated based on an Action Plan. Through continuing dialogues with all of the players we are making sure that all share a common updated awareness of priorities and of each others programs.  These dialogues also serve to enhance communication between the Government, private sector and donors.

Algeria Postal and Telecommunications Reform Project

The most recent presidential elections of April 1999 in Algeria resulted in the appointment of a government broadly committed to an ambitious liberalization agenda, including the telecommunications and postal sectors. Since project approval in June 2000, implementation has proceeded smoothly, beginning with the establishment of the independent regulatory body (ARPT) in May 2001.   In the telecom sector, a second GSM license was successfully awarded in July 2001 through a competitive and transparent bidding process and the Government has confirmed its commitment to awarding a third GSM license as scheduled by December 2003.   In addition, the Government plans on awarding two VSAT licenses and two licenses for rural telecommunications operators in 2002.

In the postal sector, two six-month studies will be undertaken, beginning in January 2002, on universal access and on corporatization and modernization of the incumbent operator, Algérie Poste.   These studies will form the basis for a new postal sector strategy that aims to improve the environment for competition and allow for faster growth.   The strengthening of the postal incumbent together with the progressive liberalization of the sector will allow Algeria to access European and international markets and competition standards.

Secondary legislation, including the further organization and functioning of the postal and telecom operators (Algérie Poste and Algérie Télécom) and of ARPT is scheduled to be enacted by Q1 2002.

Morocco Post, Telecommunications and Information Technology Project

The Post, Telecommunications and Information Technology Project introduced effective competition in the Moroccan telecommunications market through the award of a mobile GSM license which conferred special rights to the new operator, fostering its ability to compete effectively against the incumbent operator (right to build and lease alternative infrastructure, right to offer fixed wireless services in certain areas, and right to offer international services to its clients). The project assisted the regulator, ANRT, to build its technical capacity and strengthen its independence from political pressures. The tender for the selection of a GSM operator was executed in a transparent and competent manner by the independent regulator, drew world class telecommunications investors, and resulted in record revenues for the Government of Morocco. The Moroccan mobile market grew from 1% to 15% in about one year, increasing the number of Moroccans owning a phone by more than two million. Thanks to the emphasis placed by the project on a transparent tender process and proper license obligations, GSM coverage increased dramatically, from 35% to 90% of the country in 18 months, far beyond expectations. The project was an example of how transparent tendering and independent regulation can lead to successful telecommunications reform. The telecommunications reform path of other Maghreb countries (Algeria,Tunisia) was influenced by this project.

Mauritania Telecommunications Reform Project

The Telecommunications Reform Project has prominently featured pro-competitive reform in which clear rules of the game were sucessfully developed and implemented well before introduction of competition and privatization. All segments of the telecommunications market are now subject to competition, including provision of international telephone services. The new incentive framework has generated an overwhelming supply response. Within one year of rollout of new mobile networks in November 2000, the number of access lines per thousand inhabitants has jumped eight-fold from five to forty, while private investment inflows into the telecommunications period over a twelve month period were equivalent to 10% of GDP.   By establishing records for speed, transparency and level of proceeds received for new mobile licenses and privatization, the project has received close attention from other countries in the sub-Saharan African Region and is becoming a model for rigorously designed reform. In addition, project dialogue spurred initiatives leading to the creation of a full-fledged multi-utlity regulator; and the establishment of a new Secretariat for Information and Communication Technologies as an offshoot of a working group within the Poverty Reduction Strategy.   The project has led to a new initiative in its Poverty Reduction Strategy aimed at developing human resources through provision of infrastructure access in underserviced and unserviced areas, which will also enable use of communications and information technologies for provision of education, health, micro-enterprise development, and other services.