The World Bank Implementation Status & Results Report Pacific Regional Connectivity Program 2:FSM Connectivity Project (P130592) Pacific Regional Connectivity Program 2:FSM Connectivity Project (P130592) EAST ASIA AND PACIFIC | Micronesia, Federated States of | Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 17 | ARCHIVED on 28-Jun-2023 | ISR56289 | Implementing Agencies: Department of Transport, Communication and Infrastructure, Federated States of Micronesia, Federated States of Micronesia Telecommunications Cable Corporation, Telecommunication Regulation Authority Key Dates Key Project Dates Bank Approval Date: 17-Dec-2014 Effectiveness Date: 11-Mar-2015 Planned Mid Term Review Date: 30-Nov-2019 Actual Mid-Term Review Date: 15-Sep-2019 Original Closing Date: 31-Jan-2020 Revised Closing Date: 30-Nov-2026 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the Project is to reduce the cost and increase the availability of ICT services needed to supportsocial and economic development in the Recipient's territory. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1A Palau-Yap-Guam Cable System:(Cost $22.50 M) Component 1B Chuuk-Pohnpei Cable System:(Cost $18.50 M) Component 1C Kosrae and FSM Regional Digital Connectivity Infrastructure:(Cost $15.95 M) Component 2 Technical Assistance:(Cost $4.75 M) Component 3 Project Management:(Cost $1.44 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Progress towards achieving the Project Development Objective and overall implementation progress are rated Moderately Satisfactory, which also takes account of current progress measured against the revised, more ambitious, end targets for PDO level results indicators established under the Project restructuring completed on November 30, 2022. The amount of bandwidth has increased significantly now that the cable systems for Chuuk and Yap have been installed and are operational. The quality and availability of services has improved with the speed of an entry level fixed broadband package increasing from 0.25 Mbps to 10 Mbps. Limited competition has arrived and is having an impact on the quality and price of services. 6/28/2023 Page 1 of 7 The World Bank Implementation Status & Results Report Pacific Regional Connectivity Program 2:FSM Connectivity Project (P130592) Following the restructuring in November 2022, implementation continues to ramp up for the added subcomponent on Kosrae and FSM Regional Digital Connectivity Infrastructure. The procurement of additional satellite bandwidth for Kosrae and Tawara (Republic of Kiribati) is underway, with expressions of interest currently being evaluated. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Low Low Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Substantial Substantial Sustainability Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Increase the availability of information and communication technology services IN01294921 ►Access to telephone services (mobile phones per 100 people) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 25.00 27.52 50.00 Date 25-Sep-2014 30-Nov-2022 25-May-2023 30-Nov-2026 About 29,000 subscribers with 106,600 population Comments: Increase the availability of information and communication technology services IN01294914 6/28/2023 Page 2 of 7 The World Bank Implementation Status & Results Report Pacific Regional Connectivity Program 2:FSM Connectivity Project (P130592) ►Access to Internet Services (number of subscribers per 100 people) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 10.36 27.85 50.00 Date 25-Sep-2014 30-Nov-2022 25-May-2023 30-Nov-2026 IN01294919 Number of mobile broadband connections (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,591.00 3,591.00 50,000.00 IN01294923 Number of fixed broadband connections (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,391.00 7,396.00 9,500.00 Reduce the cost of information and communication technology services IN01294915 ►Wholesale International Internet bandwidth price (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,800.00 61.00 61.00 20.00 Date 25-Sep-2014 30-Nov-2022 25-May-2023 30-Nov-2026 Overall $61/Mbps/month (including satellite components) based on costs for OAE/Hantru cable/satellite divided by total estimated amount of traffic current at 4.605 Gbps. Note this outcome measurement is Comments: sensitive to changes to the estimated costs of Kosrae satellite capacity. Increase the availability of information and communication technology services IN01294916 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21,787.00 21,787.00 57,500.00 Date 25-Sep-2014 30-Nov-2022 25-May-2023 30-Nov-2026 Yap with approx. 7,000 inhabitants and Chuuk with 14,000 inhabitants on Weno. There are also several thousands inhabitants on Etten, Uman, Fefan and Tonawas who benefit from better 3G, but are not yet Comments: quantified so currently excluded from the project beneficiary count. IN01294920 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 6/28/2023 Page 3 of 7 The World Bank Implementation Status & Results Report Pacific Regional Connectivity Program 2:FSM Connectivity Project (P130592) Value 50.00 50.00 50.00 50.00 Increase the availability of information and communication technology services IN01294911 ►Internet bandwidth available (Mbps) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 38.00 300,650.00 300,650.00 400,000.00 Date 25-Sep-2014 30-Nov-2022 25-May-2023 30-Nov-2026 Measure of the transport capacity which has been lit up on the submarine cable plus an estimate for Kosrae satellite capacity comprised 100,000 Yap based on 1 wavelength 100,000 Chuuk based on 1 wavelength Comments: 150 Kosrae based on repurposed satellite capacity The amount of bandwidth during the previous reporting period will be corrected and restated—it comprised 50-70 Mbps on Yap, 165 Mbps on Chuuk and 75 Mbps on Kosrae—for a total of approximately 300 Mbps IN01294917 Annual total data network traffic (Gbps) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 10.00 Impact on Telecom sector of World Bank Technical Assistance (composite score: 1-low impact to 5-high IN01294912 ►Impact on Telecom sector of World Bank Technical Assistance (composite score: 1- low impact to 5-high impact) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 4.00 4.00 5.00 Date 25-Sep-2014 30-Nov-2022 30-Nov-2022 30-Nov-2022 Reduce the cost of ICT services needed to support social and economic development IN01294913 ►Retail Price of Internet Services (per Mbit/s per Month, in US$) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 65.00 4.90 4.90 20.00 Date 30-Sep-2014 30-Nov-2022 25-May-2023 30-Nov-2026 Tariff for 1 Mbps residential “naked ADSL” price is $39 ADSL; PSTN line charge is $12 and for PSTN subscribers 1 Mbps DSL is available for $33. Comments: 1Mbps service is only available at this price level in Yap Chuuk and Pohnpei which are all now connected by submarine fiber optic cable system. 6/28/2023 Page 4 of 7 The World Bank Implementation Status & Results Report Pacific Regional Connectivity Program 2:FSM Connectivity Project (P130592) In Kosrae the 1Mbps the ADSL service costs $129 (plus PSTN line charge) or 256Kbps service for $33 (plus telephone line charge). The impact of Kosrae costs on national retail prices has not been included due to the small number of subscribers in Kosrae and difficulties comparing difference service levels. Note the previous value measured the business DSL tariff due to no tariff availability for consumer 1 Mbps at that point in time. IN01294918 Retail Price of Entry Level Fixed Broadband (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 69.00 49.00 49.00 25.00 IN01294922 Speed of entry level fixed broadband package (Mbps/mth) (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.25 10.00 10.00 100.00 IN01294924 Retail price entry level mobile broadband (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 705.00 30.00 30.00 20.00 Intermediate Results Indicators by Components Component 1 International Connectivity Infrastructure IN01294925 ►Length of fiber optic cable access (km) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,950.00 1,950.00 1,950.00 Date 25-Sep-2014 30-Nov-2022 25-May-2023 30-Nov-2022 IN01294927 ►EMC establishment (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 20-Mar-2017 30-Nov-2022 25-May-2023 30-Aug-2019 The C&MA has been signed by the parties establishing the EMC consortium. Comments: Component 2 Technical Assistance IN01294926 ►Regulatory capacity strengthened (Yes/No, Custom) 6/28/2023 Page 5 of 7 The World Bank Implementation Status & Results Report Pacific Regional Connectivity Program 2:FSM Connectivity Project (P130592) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 25-Sep-2014 30-Nov-2022 25-May-2023 30-Nov-2022 IN01294928 Essential Facility/bottleneck regime adopted (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes IN01294929 Reporting framework for licensees adopted and implemented (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes IN01294930 Interconnection regime established (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P130592 IDA-D0040 Effective USD 47.50 47.50 0.00 43.79 0.99 98% P130592 IDA-D1880 Effective USD 16.20 16.20 0.00 2.97 13.01 19% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P130592 IDA-D0040 Effective 17-Dec-2014 06-Mar-2015 11-Mar-2015 31-Jan-2020 30-Nov-2026 P130592 IDA-D1880 Effective 31-May-2017 19-Sep-2017 20-Jun-2019 30-Nov-2022 30-Nov-2026 Cumulative Disbursements 6/28/2023 Page 6 of 7 The World Bank Implementation Status & Results Report Pacific Regional Connectivity Program 2:FSM Connectivity Project (P130592) Restructuring History Level 2 Approved on 13-Feb-2016 ,Level 2 Approved on 11-Jun-2019 ,Level 2 Approved on 28-Nov-2022 Related Project(s) P161308-Add'l Financing FSM Connectivity Project ,P161363-P2: Palau-FSM Connectivity Project: AF Kosrae Connectivity 6/28/2023 Page 7 of 7