The World Bank Burkina Faso Digital Transformation Project (P177022) Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 07-Sep-2023 | Report No: PIDA34169 Mar 16, 2023 Page 1 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Burkina Faso P177022 Burkina Faso Digital Transformation Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) WESTERN AND CENTRAL AFRICA 02-Oct-2023 30-Oct-2023 Digital Development Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Burkina Faso Ministry of Digital Transition, Posts and Electronic Communications Proposed Development Objective(s) The PDO is (i) to expand access to affordable broadband, (ii) to improve access to and adoption of selected digitally enabled public services, and (iii) to increase access to digital skills programs. Components Component 1. Expanding Digital Connectivity for Digital Inclusion  Component 2. Accelerating the Digital Transformation of Public Services for Inclusion and Universal Accessibility Component 3. Developing Digital Skills for the Knowledge Economy Component 4. Project Management Component 5. Contingent Emergency Response Component (CERC) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 150.00 Total Financing 150.00 of which IBRD/IDA 150.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing Mar 16, 2023 Page 2 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) International Development Association (IDA) 150.00 IDA Credit 150.00 Environmental and Social Risk Classification Substantial Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context 1. Burkina Faso is a country in the Sahel confronting a range of governance and security challenges.1 Violent conflict has grown significantly since 2015, including violent extremism, terrorist attacks, and intercommunal tensions.2 This led to rising political and social discontent in 2022, including the seizure of power by the army in January and again in September. However, political and security risks remain high and require close monitoring. Violence now affects around 40 percent of the country, with sporadic events reported in all regions. The Transition Government of Burkina Faso (GoBf) also reports 2.06 million internally Displaced Persons (IDPs) and 6,253 schools are closed as of December 2022. 2. Gross Domestic Product (GDP) growth slowed to an estimated 2.5 percent in 2023 (-0.1 percent in per capita terms) on the back of a spread of insecurity, combined with the impact of Russia’s invasion of Ukraine on global commodity prices. After strong 2021 growth, the secondary sector contracted 4.9 percent in 2022 due to the insecurity-induced closure of several mines. As a result, growth was constrained by lower exports (-0.6 percent) while buoyed by higher public investment (+39.8 percent), as the GoBF increased security spending. Medium-term growth is projected to average slightly below 5 percent, driven by services (including public administration), agriculture, Information and Communication Technologies (ICT), and a recovery in gold mining on the supply side, and consumption, private investment, and exports on the demand side. The Second National Plan for Economic and Social Development (Plan national de développement économique et social - PNDES II, 2021-2025)—approved in July 20213— is embedding ICT and digitalization in its 4th strategic pillar aimed at ‘boosting growth sectors for the economy and jobs’. 1 Burkina Faso has been classified by the World Bank Group (WBG) as a Fragility, Conflict and Violence (FCV)-affected country of “medium-intensity conflict� since FY20. https://thedocs.worldbank.org/en/doc/d8626e8da91e89ca049877b4614b4527-0090012021/related/FCSList-FY22.pdf 2 Burkina Faso: A history of destabilization by jihadist insurgencies. France 24. January 25, 2022. 3 National social and economic development plan (2nd generation). Source: https://www.finances.gov.bf/forum/detail- actualites?tx_news_pi1%5Baction%5D=detail&tx_news_pi1%5Bcontroller%5D=News&tx_news_pi1%5Bnews%5D=359&cHash=35b6bdc4452d9558d3c0547 699a9ea8a Mar 16, 2023 Page 3 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) 3. Challenges related to poverty and low human capital persist. Poverty incidence is estimated to have increased by 5.9 percentage points, implying that an additional 1.5 million fell into extreme poverty during 2022.4 Burkina Faso’s poor live predominantly in rural areas and are mainly farmers who depend on low -productivity agricultural production systems. The great majority of the urban poor are daily wage earners in the informal sector who are engaged in low-productivity activities. Although Burkina Faso has a relatively low unemployment rate on paper among youth ages 15 to 24 (estimated at 8.5 percent5), 64.81 percent of the country’s population6 is under 25 years old, and the formal education system and employment creation cannot keep up with this growing youth population. 4. Women and girls as well as Persons with Disabilities (PwDs) do not benefit equally from education, economic opportunity, and political participation (see Annexes 2 and 3). While access to education has improved in recent years and girls complete lower secondary education at higher rates, many factors continue to negatively affect girls’ access to education. Gender gaps persist with respect to adult literacy: in 2021, the adult literacy rate of women aged 15 years and older was 38 percent compared to 55 for adult men. Women’s participation in the labor market (share of female population ages 15+) has been experiencing a downward trend from its highest levels at 76.29 percent in 1990 to 54 percent as of 2021. Women have remained severely underrepresented in public administration: in 2022, women made up only 33.3 percent of the civil service workforce while 66.7 percent were men.7 As for the 184,975 PwDs, challenges persist with respect to accessibility, mobility, and economic opportunities. 5. Burkina Faso is experiencing the adverse effects of climate change (see Annex 4). The main threats are rising temperatures, floods, and droughts. Temperatures across the country are projected to increase by 3 to 4°C by the end of the century. The likelihood of annual severe droughts is expected to increase. With limited and unreliable rainfall, flash floods and droughts are expected to become more pronounced and frequent. According to the Group of Five for the Sahel (G5 Sahel) Country Climate and Development Report (CCDR), large economic output losses are expected from climate change, with losses increasing over time. By 2050, annual GDP in Burkina Faso would be reduced by 3.5 percent under the wet and optimistic climate scenarios and 6.8 percent under the dry and pessimistic ones. By 2050, the poverty rate will increase relative to the medium-growth baseline by 1.8 percentage points (pp) under the wet and optimistic climate scenarios and 5.3 pp under the dry and pessimistic ones, which translates to an additional 2.7 million in poverty. Burkina Faso’s Nationally Determined Contribution (NDC) outlines the country’s commitment to reduce its greenhouse gas (GHG) emissions by 30 percent below 1995 levels by 2030 while strengthening the resilience of its people to climate change. To achieve these targets, one of the key policy documents is the “Vision 2050 of low-carbon and climate-resilient development in Burkina Faso� that was adopted on Dec 16, 2022. 8 4 Macro Poverty Outlook - Burkina Faso, World Bank, 2023 5 International Labour Organization, ILOSTAT database. Data retrieved on August 10, 2023. https://data.worldbank.org/indicator/SL.UEM.1524.ZS?locations=BF 6 https://www.indexmundi.com/burkina_faso/demographics_profile.html 7 Ministry of Public Service, Labor and Social Security, Key Figures 2022, https://www.fonction- publique.gov.bf/fileadmin/user_upload/storage/05_AVRIL_2023-_Brochure_Version_finale_Amendee.pdf. 8Additionally, Burkina Faso has developed a National Strategy for Disaster Risk Reduction (NSDRR), which was launched in 2011 and aims to strengthen the country’s capacity to prepare for, respond to, and recover from disasters, including those exacerbated by climate change. Mar 16, 2023 Page 4 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) Sectoral and Institutional Context Closing the broadband infrastructure gap as a prerequisite for ICT sector growth 6. Access to and use of broadband has grown significantly from a low base but remains limited and uneven. The number of unique mobile broadband subscriptions per 100 inhabitants is low at 26 percent in 20229 with broadband affordability remaining a critical barrier to usage in the areas covered (internet affordability stands at 1 Gigabyte (GB) of mobile broadband data for 6.3 percent of GNI per capita in 2021, compared to the global target of 1 GB for 2 percent of GNI per capita).10 There is a significant and widening gender gap in Internet use: 8 percent of women versus 16 percent of men report regular Internet usage.11 7. Burkina Faso is committed to an enabling institutional and legal framework for a competitive telecoms sector. There is an independent telecoms sector regulator (Autorité de Régulation des Communications électroniques et des postes – ARCEP). All three major private telecoms operators in Burkina Faso (Orange, Moov Africa Burkina – ex. ONATEL S.A., and Telecel Faso) benefit from global licenses (for fixed and mobile operations). Mobile licenses are technology-neutral, and Sonabel (electricity company) and Sitarail (railway operator) have a wholesale license allowing them to market the excess capacity of their fiber optic networks. Despite all these positive developments, the legal and regulatory framework could still be improved, for example by strengthening infrastructure sharing that is critical to decrease deployment costs of broadband networks. 8. Significant progress has been achieved in deploying fiber optic infrastructure throughout landlocked Burkina Faso.12 Over 8,000 km of optical fiber have been constructed, including nearly 3,000 km built by the GoBF,13 connected to all six neighboring countries (Ghana, Mali, Niger, Benin, Togo, and Côte d’Ivoire). This provides the highest fiber connectivity of administrative capitals amongst G5 Sahel countries. In addition, the country has acquired a total international bandwidth capacity of nearly 70 Gigabits per second (Gbps) and established two dry ports for international bandwidth open access infrastructure known as virtual landing points (VLP) in Ouagadougou and Bobo-Dioulasso, under the closed World Bank (WB)-funded West African Regional Communications Infrastructure Program (WARCIP 1B Burkina Faso, P122402). The VLPs have considerably reduced the cost of international bandwidth (by a factor of six over 2018-2021). However, the cost per Megabits per second (Mbps) remains three times higher (at US$30) than in neighboring countries with direct access to submarine cables. In 2021, following a competitive process, a private operator (Telecel Faso) was selected to operate, maintain, and commercialize the GoBF’s 3,000 km fiber-optic network through a Public-Private Partnership (PPP), according to open access principles. 9. However, third and fourth generation mobile broadband networks (3G and 4G) cover only two-thirds of the population. Between 2019 and 2021, while 3G network coverage per capita remained stable at 65 percent, 4G network coverage per capita increased from 10 percent to 41 percent. The expansion of last-mile broadband access networks by private sector operators to unprofitable rural and remote areas is a real challenge, compounded by high costs to electrify the networks themselves and security risks. Mobile operators have coverage obligations in 9 Global System for Mobile Communications Association (GSMA), July 2022. 10 Average price data from Cable.co.uk 2021 and monthly GNI per capita from WDI 2021. 11 Afrobarometer (2016/2018) 12 The broadband network value chain to develop universal, affordable, and good quality internet comprises four broad segments. The first mile is where the internet enters the country. The middle mile is where the Internet passes through the country. The last mile is where the Internet reaches the end-users. (https://broadbandcommission.org/wp-content/uploads/2021/09/WGDigitalMoonshotforAfrica_Report2020-1.pdf) 13 The GoBF finalized mid-2021 the deployment of the first phase of its National Fiber Optic Backbone project. With this addition of 2 000 km of fiber optic, the GoBF now owns over 3 000 km of fiber optic backbone (650 km through the G-Cloud project financed by the DANIDA and 300 km through the WB-funded WARCIP 1B Burkina Faso Project. Mar 16, 2023 Page 5 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) their licenses, but a total of around 1,000 localities (out of 8,300) have been left out of this coverage, leaving it to the Universal Service Fund (Fonds pour l’Accès et le Service Universel, FASU) – to which mobile national operators (MNOs) and Internet Service Providers (ISPs) contribute, or other catalytic public funding - to ensure coverage. However, FASU plans to cover only half of the 1,000 localities that are not under the coverage obligations of the mobile operators within the next 10 years. Importantly, there is a proven link between mobile broadband coverage and household welfare.14 Leveraging investments in safe Digital Public Infrastructure to digitalize high impact people-centric public services 10. GoBF is progressing in the digitalization of public services but digital governance needs to be improved. The Ministry of Digital Transition, Posts and Electronic Communications (Ministère de la Transition Digitale, des Postes et des Communications Electroniques - MDTPEC) is in charge of piloting the 2018-2027 National Strategy for Development of the Digital Economy (Stratégie Nationale de Développement de l'Economie Numérique – SN@DEN), with the support from several digital agencies such as the National ICT Agency (Agence Nationale de Promotion des Technologies de l’Information et de la Communication – ANPTIC) in charge of the main IT infrastructure and ICT projects of the Government, and the National Cybersecurity Agency (Agence Nationale de Sécurité des Systèmes d'Information - ANSSI) supervised directly by the Prime Minister’s Office. Under the recently closed Burkina Faso eGovernment Project (P155645), the GoBF developed an eGovernment strategy and essential frameworks15 including norms, standards, and rules for digital government. However, their widespread implementation and application have been hindered, because the responsibility for implementing digital government initiatives is dispersed among several public entities, and the steering committees for SN@DEN and the National Strategy for the Modernization of Public Administration (Stratégie Nationale de Modernisation de l’Administration Publique -SNMAP, 2021-2025) are not yet effective. Despite this, Burkina Faso progressed from 185th to 166th out of 193 countries in the UN e-Government Development Index ranking from 2016 to 2022. In the 2022 GovTech Maturity Index (GTMI)16, Burkina Faso advanced to a higher group (Group B – Significant Focus on GovTech – where it joined Benin, Ghana, Nigeria, and Togo) as a result of the substantial investments made on core government systems and shared digital platforms. 11. Burkina Faso has been focusing its efforts on putting in place key building blocks for the digitalization of public services. • Legal framework for digital safeguards and enablers. Burkina Faso has a data protection law17 in effect and being enforced by a regulator (National Commission on Informatics and Liberty – Commission de l'Informatique et des Libertés, CIL).18 The draft law for defining and governing information system security19 has been awaiting review and approval at the level of the Council of Ministers since December 2022. Despite having a national cybersecurity strategy (period ending in 2023), which was supported by the eGovernment 14A joint GSMA-WB study conducted in Nigeria has demonstrated that the proportion of households below the extreme poverty line ($1.90 per day) drops by about 4 ppts after just one year of gaining mobile broadband coverage and by about 7 ppts after two or more years of coverage, which is equivalent to moving approximately 2.5 million people out of extreme poverty. Source: GSMA and WB, 2020. The Poverty Reduction Effects of Mobile Broadband in Africa: Evidence from Nigeria. Available at: https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2020/12/The-Poverty-Reduction-Effects- of-Mobile-Broadband-in-Africa-Evidence-from-Nigeria.pdf. 15 RGI (General Interoperability Framework), RGS (General Security Framework) and SMQ (Quality Management System Framework) 16 World Bank. 2023. GovTech Maturity Index, 2022 Update - West and Central Africa Regional Brief. http://hdl.handle.net/10986/39661. The GTMI measures the key aspects of four GovTech focus areas in 198 economies – supporting core government systems, enhancing service delivery, mainstreaming citizen engagement and fostering GovTech enablers. 17 The law on personal data protection was updated in March 2021. 18 The WURI Phase 2 project (P169594) is providing support to the data protection framework and the capacity of the data protection authority . . 19 This draft bill shall include the general principles related to the protection of information systems, the rights and obligations of the operators of information systems, the specific rules for the control of the protection of Critical Information operators, sanctions in case of breach, etc. Mar 16, 2023 Page 6 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) project, there is a lack of clear governance frameworks and critical information infrastructure protection programs. Burkina Faso has also enacted an e-transactions law that recognizes the legal effects of electronic signatures, documents, and transactions, but this law would need to be aligned with more recent legal frameworks on e-signatures. It should incorporate principles from regulations such as eIDAS, which focus on electronic identification and trust services, including the provision and recognition of different levels of assurance for electronic signatures. • Connecting public institutions to public data infrastructure. ANPTIC is responsible for operating the Government’s National Information Network (Réseau Informatique National - RESINA). By the end of 2022, a total of 2,627 administrative buildings were connected to RESINA, including 695 by fiber optic. ANPTIC also launched its G-Cloud project with support from the Danish International Development Agency (DANIDA) in 2015 to introduce the components of a shared public service delivery infrastructure, including fiber connectivity (650 km20 wide area network (WAN)). This includes access to shared data centers (G-Cloud nodes) for 400 public facilities in 13 regional urban centers, as well as Platform as a Service (PaaS). Currently, the G-cloud infrastructure hosts 66 websites and 34 government applications and services. However, G- Cloud infrastructure and the local area network (LAN) in the buildings of Ministries, Departments, and Agencies (MDAs) connected to RESINA have technical challenges such as the limited storage capacity of the G-Cloud, the recurrent unavailability of RESINA, and overall unreliable energy sources. Apart from addressing those technical challenges with RESINA, the GoBF is considering the establishment of a national data center to consolidate existing scattered public server rooms and reduce the reliance on distant overseas facilities. However, feasibility studies need to be conducted for this center. • Government digital service portal and digital public platforms. The WB-funded Public Sector Modernization Program (P132216) and the Burkina Faso eGovernment Project supported the development and implementation of the Digital Service Portal (Guichet Virtuel de l’Administration Publique (GV-AP)), currently hosted in the Ministry of Civil Service, Labor and Social Protection. This portal consolidates information from different government agencies, such as administrative procedures, decrees, and government services available online. Since it was put in operation in July 2019, the portal recorded 388,726 visitors. It is not yet designed as a full-service delivery portal due to lack of integrated enablers (such as digital ID, e-payment, digital signature, or even simple modules such as e-registration or transverse search) for the provision of end-to-end digital public services and to facilitate user accessibility especially for the digitally illiterate population. The eGovernment Project also supported the development of seven digital public platforms selected based on: (i) their expected outcome to improve efficiency and transparency in the management of the public administration, and (ii) the low level of technical and regulatory requirements.21 • Capacity building of public servants. While a significant number of civil servants (over 4,000) have received digital skills training under the recently closed Burkina eGovernment Project, there is still a shortage of qualified IT professionals such as information system architects, software engineers, and security specialists to ensure the security, improvement, and maintenance of existing digital public platforms. 12. On the basis of these building blocks, more needs to be done to achieve digitalization of high impact people-centric public services. Only a small number of public administrative procedures (25 among the 492 listed in a Presidential Decree in 2018) have started to undergo digitalization, primarily within certain sectoral ministries 20Internet Protocol Multi-Protocol Label Switching. 21Open Data Burkina Faso, Integrated Mission Circuit (Circuit Intégré des Missions, CIM), Integrated Data Management System (Système Intégré de Gestion des Données, SIGED), Integrated Management System for Public Institutions (Système Intégré de Gestion des Établissements Publics de l'État, SIGEPE), Information System for Development Repositories (Système d'Information des Référentiels de Développement, SIRD), and the Municipal Performance Monitoring Tool (Suivi de la Performance Municipale, SUPERMUN). Mar 16, 2023 Page 7 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) (e.g., Ministry of Higher Education, Ministry of Civil Service, Labor and Social Protection, Ministry of Youth, etc.). However, most of these 25 services do not yet enable end-to-end transactions for users. The GoBF organized a national conference on the digitalization of public services (Government-to-People (G2P)/Government-to-Business (G2B)) in April 2023, which resulted in the identification of 43 priority people-centric services to be digitalized and a national committee was established to elaborate a comprehensive methodology for defining them. These 43 services cover various sectors, including education (such as the recognition of transcripts and degree certificates), civil registration and identity (including citizenship certificates, and biometric enrollment of internally displaced persons), justice (such as criminal records), land administration (including land registration), public administration (such as civil service exams), trade (such as e-procurement22), social protection (including food aid and other supplies), and health (such as patient records). 13. Burkina Faso also shows progress in digital citizen engagement and openness through Open Data initiatives, but many important gaps remain. Burkina Faso ranks 86th out of 187 in the Open Data Inventory 2020.23 According to the 2022 GTMI, Cabo Verde and Burkina Faso lead in the West and Central Africa region in digital citizen engagement and openness. In 2014, Burkina Faso was among the first in the region to launch the Burkina Faso Open Data Initiative (BODI) Project,24 with the support of the WB, which included the implementation of open data portals with comprehensive data covering agriculture, education, transport, and other major aspects of the economy25. The open data platform has more than 1,173 datasets and the most trending topics include agriculture, health, water, and environment. This undertaking increased transparency and helped nurture the local innovation ecosystem as well as digital citizen engagement. However, the contents and update frequencies of those platforms vary because the processes are not fully automated. Addressing digital illiteracy and lack of IT skills to bring the benefits of digital transformation to the population 14. Gaps in digital literacy and skills are an obstacle to Burkina Faso’s digital transformation . The current education system does not provide appropriate digital skills, nor does it prepare the Burkinabe youth for the future of work in a digital economy. Like neighboring countries, the demand for foundational digital skills26 is expected to increase in the ICT sector and across the economy to account for 70 percent of the total demand by 2030.27 Yet, persistent gaps remain across the different levels of digital skills from digital literacy to basic, intermediate, advanced, and specialized digital skills. The International Telecommunication Union (ITU) ranks Burkina Faso as second to last in ICT skills. The 2021 Findex data reveals significant gaps with respect to digital financial literacy. As an illustration, 27 percent of women versus 40 percent of men made or received a digital payment (gender divide); 29 percent of whom had a primary education or less against 52 percent with a secondary education or higher (education divide); and 27 percent reported making or receiving a digital payment in rural areas against 46 percent in urban areas (geographical divide). 15. Several programs have aimed to integrate digital skills in the education system in Burkina Faso, including 22 Under the WB-Global Procurement Partnership (GPP) Trust Fund project (P176026), the GoBF is piloting electronic Government Procurement (e-GP) in three sectoral ministries The e-GP system will ultimately be decentralized to all the contracting authorities and interfaced with the existing Integrated Financial Management and Information System. The e-GP system will ultimately be decentralized to all the contracting authorities and interfaced with the existing Integrated Financial Management and Information System. 23 Open Data Inventory (ODIN) 2020, Burkina Faso Country Report, available from: https://odin.opendatawatch.com/ReportCreator/ExportCountryReportUpdated/BFA/2020 24 Supporting Burkina Faso Open Data Initiative and addressing drought risks by introducing innovative use of data & Open Data solution (P151740). 25 See www.data.gov.bf and indicateurs.gov.bf 26 Foundational digital skills refer to skills required to make rudimentary use of digital devices and applications. 27 Digital Skills in Sub-Saharan Africa, IFC, 2019. Mar 16, 2023 Page 8 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) a range of national projects such as the ECOWAS/UNESCO28 project (PADTICE29) in 2013 and the creation of the Virtual University of Burkina Faso (UV-BF) in 2018 also focusing on the integration of ICTs in higher education. However, there are no digital skills programs provided at primary and secondary levels, whereas acquiring such skills at an early age would build the foundations to develop intermediate and advanced skills.30 Overall, there is a need for a holistic approach that ensures cohesion among existing programs. Such a holistic approach requires a well thought through digital skills development framework coupled with synergistic partnerships between the GoBF and the private sector (including digital skills training providers31), as well as a cohesive action plan that improves the skills matching process and increases employment opportunities, especially for out-of-school youth. 16. Beyond foundational digital skills, the GoBF seeks to promote digital entrepreneurship skills as an enabler for youth employability.32 There is a nascent and active digital innovation ecosystem in Burkina Faso as evidenced by an increasing number of incubators and initiatives (KeoLID, Sira-labs, Incub@uo, Wakalab, and Beogolab, Forum des Startups, hackathons, Concours de détection de jeunes talents33). Both of the KeoLID and Sira-labs incubators are fully operational through the support provided under the recently closed Burkina Faso eGovernment Project and have trained 7550 youth on the fundamentals of digital entrepreneurship, which resulted in the incubation of 52 projects including 26 percent in rural areas and 12 micro and small businesses. At completion, the eGovernment Project resulted in more than 16,132 visitors and 3,159 trainees from the established incubators in Ouagadougou and in Bobo Dioulasso.34 C. Proposed Development Objective(s) Development Objective(s) (From PAD) to expand access to affordable broadband, to improve access to and adoption of selected digitally enabled public services, and to increase access to digital skills programs. Key Results 17. The proposed PDO outcome indicators to measure achievements of the PDO are the following: To expand access to affordable broadband • PDO 1.1: People provided with new or enhanced access to broadband internet (number), of which female (percentage) • PDO 1.2: Average monthly price of a 1-GB internet subscription (amount (USD)) 28 UNESCO Dakar annual report 2015: Burkina Faso, Cabo Verde, Gambia, Guinea-Bissau, Mali, Niger, Senegal. 2016. https://unesdoc.unesco.org/ark:/48223/pf0000245991/PDF/245991eng.pdf.multi 29 Project to Support the Development of Information and Communication Technologies (Projet d'Appui au Développement des Technologies de l'Information et de la Communication) 30 UNCDF. 2021. Inclusive Digital Economy Scorecard Report: Burkina Faso 2020. 31 ESI, EPO, UABEN, IBAM, UO-UFR SEA, ESTA, IST, ISGE, ST Koudougou, ST Ouahigouya, ST Dédougou, ESMT Ouaga, UO3S, ESPK KAYA, ESCO-IGES, ISPSA-D. 32 World Intellectual Property Organization, Global Innovation Index 2021: Tracking Innovation on COVID-19 Crisis, www.globalinnovationindex.org/gii- 2021-report#. 33 Do Youth Employment Programs Improve Labor Market Outcomes? A Systematic Review. Kluve and Al. 2006. 34 Implementation and Completion Report, Burkina Faso e-Government Project (2023) Mar 16, 2023 Page 9 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) To improve access to and adoption of selected digitally enabled public services • PDO 2.1 (Access): New or enhanced people-centric digitally enabled public services supported by the Project (number), of which are demonstrating over 60 percent completed transaction rate (percentage) • PDO 2.2 (Adoption): Successful transactions done through the digital public platforms supported by the Project (number) To increase access to digital skills programs • PDO 3: People provided with digital skills programs supported by the Project (number), of which female (percentage) D. Project Description 18. The Burkina Faso Digital Transformation project is designed to accelerate digital transformation through a series of integrated and mutually reinforcing interventions. These components seek to (i) help to further improve access to affordable and high-quality broadband internet by unlocking critical climate-resilient investments in the middle- and last-mile; (ii) establish further technological foundations and capabilities to digitalize public service delivery and increase the uptake through strengthened digital skills and digital data infrastructure, and deployed digital foundations stacks (interoperability, electronic certification); focus on both the supply and demand side to boost the adoption of digital services provided by the public and private sector. The project also includes project management component and a Contingent Emergency Response Component (CERC) that would allow for a quick disbursement of uncommitted balances as a swift response to eligible crises or emergencies that could arise during project implementation. Component 1: Expanding Digital Connectivity for Digital Inclusion (US$ 60.00 million) 19. Building on the WARCIP 1B Burkina Faso Project’s achievements, this Component aims to extend broadband and provide improved access to administrations, businesses, and individuals following Maximizing Financing for Development (MFD) principles as well as to make it more affordable. It will provide catalytic public funding to leverage private sector financing for a set of broadband connectivity investments designed to contribute to closing the broadband infrastructure gap.35 Such a strategy would simultaneously contribute to the GoBF’s broadband access objectives by incentivizing the private sector to invest in closing infrastructure gaps in unserved and underserved areas and avoid any displacement of private investment. 20. Moreover, the broadband connectivity built under this project will be subject to quality standards, including compliance with the requirements for disaster response and for climate change mitigation. Such elements include sufficient response time and restoration time for fiber cuts; power availability for tower sites; good management of network congestion; continuity of government and critical service functions; and availability of connectivity in strategic entities, such as hospitals, pharmacies, emergency centers, and transportation hubs.36 The construction will also aim to follow civil works standards using best-available energy efficiency standards in ICT energy efficiency37 and reducing fuel consumption in the newly built infrastructure. 35 Further details in World Bank, 2019. Innovative Business Models for expanding Fiber-Optic Networks and Closing the Access Gaps (P16335). 36 These specifications will be detailed in respective bidding documents. 37 Standards such as Operational energy Efficiency for Users (OEU); Technical Global KPIs for Fixed Access Networks (ETSI), (https://www.etsi.org/deliver/etsi_gs/OEU/001_099/012/01.01.01_60/gs_OEU012v010101p.pdf) and ETSI ES 203 228 V1.2.1 (2017-04) Mar 16, 2023 Page 10 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) Sub-component 1.1: Strengthening the climate-informed enabling environment for improved broadband access and affordability (US$5 million) 21. This sub-component will focus on the improvement of broadband access and affordability. It will involve both physical infrastructure and services. Specific type of activities to be financed are: (i) supporting ARCEP regulatory activities relevant to the broadband market; (ii) supporting MDTPEC and ARCEP in developing and operationalizing a universal broadband access strategy to achieve universal access by 2030; and (iii) supporting MDTPEC and ARCEP to define a climate-informed strategy for the telecom sector. Sub-component 1.2. Expanding national fiber optic backbone (US$13 million) 22. This sub-component aims at increasing the coverage of the national fiber optic backbone to reach more provinces and communes subject to climate standards, including compliance with the requirements for disaster response and climate change mitigation. It will target the missing links of the existing national backbone (operated as a PPP by Telecel Faso), taking into account relevant WB experience (e.g. Mauritania, Gabon…). Financing under this sub- component includes: (i) identifying missing fiber optic backbone links subject to market failures and design the most appropriate investment model in close collaboration with Mobile Network Operators (MNOs), Internet Service Providers (ISPs), other operators as appropriate and local authorities, and (ii) support the implementation phase of selected missing fiber optic backbone links. Sub-component 1.3. Expanding access to broadband to Ministries, Departments, and Agencies (MDAs) (US$17 million) 23. This sub-component will support the GoBF's effort to enhance the level of access to broadband in selected public institutions across the country by, leveraging its national fiber-optic network’s footprint, and targeting zones hosting displaced people (“under-pressure areas�) and facing risks of conflict extension (“prevention areas�).38 Leveraging on the WB huge experience of connecting MDAs to broadband (Uganda, Ghana ...), this sub- component will also support the following activities: (i) expansion of access to broadband; and (ii) acquisition and financing of relevant access to internet and equipment in identified locations. Sub-component 1.4. Expanding last-mile broadband in rural areas (US$25 million) 24. This sub-component aims at catalyzing expansion of last-mile broadband access network to rural areas where the commercial incentive for network expansion is too weak for further broadband infrastructure upgrades or new investment, and thus subject to market failure. Spatial targeting will specifically target unserved zones particularly exposed to high climate risks (such as flooding and drought) as identified in the WB’s country climate vulnerability assessment,39 and prioritize zones hosting displaced people (“under-pressure areas�) and facing risks of conflict extension (“prevention areas�) where there is a high prevalence of ethnic minorities, nomadic/pastoralist populations, and youth out of the school system or unemployed. To tackle the lack of power supply, telecommunication networks bring their own power to offer the service, and the project embeds an approach whereby, for each site, a moderately over-dimensioned solar power supply will also be installed to run 38 Based on the lessons learned from the initial implementation of the program, the Government decided to first focus on the short�term immediate response to recover from the security crisis, and the medium�term prevention and building resilience of the population. 39 https://climateknowledgeportal.worldbank.org/country/burkina-faso/vulnerability Mar 16, 2023 Page 11 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) connectivity so that spare electric power could be used for some essential needs (e.g., powering electronic devices) by the local communities. Several rural electrification projects are underway under the leadership of ABER (Agence Burkinabe de l'Electrification Rurale). Sub-component 1.4 will take into account current and future rural electrification projects in its selection of rural localities to be covered with broadband. Closing the access gap is the mandate of the FASU (Fonds pour l’Accès et le Service Universel - Burkina's Universal Service Fund), to which MNOs and ISPs contribute. However, USF plans to cover only half of the 1,000 localities that are not under the coverage obligations of the mobile operators within the next 10 years. The proposed operation is expected to address this by strengthening the FASU’s mandate and complementing FASU's existing activities. This sub- component will finance activities that will be carried out in close collaboration with the FASU: (i) expansion of coverage of underserved areas under a competitive “reversed auction� tender process to award “least-cost� public Capital expenditures (CAPEX) subsidies; and (ii) awarding CAPEX subsidies provided to Private Telecom operators selected, that will be responsible for expanding their network in selected underserved areas at affordable cost. Component 2: Accelerating the Digital Transformation of Public Services (US$ 54.00 million) 25. Building on the achievements of the Burkina Faso eGovernment Project, this component will continue strengthening building blocks (interoperability, e-signature, data hosting, capabilities) for the digitalization of public services and increase the uptake of people-centric digital public services. “People-centric public services� primarily denotes services that are designed to keep the needs, comfort, and convenience of the end-users, the people, at the core of their development and delivery. The fundamental principle here is to transition from a ‘Government-to-Citizen’ approach to a ‘Citizen-to-Government’ approach, where the user needs and preferences guide the creation of digital public services. This can be a critical benefit for vulnerable groups such as the elderly, disabled, or displaced, who might face higher barriers in accessing services in terms of inclusion, accessibility, languages offered and assistance features, thus making the services universally accessible. In the context of Sub- components 2.1 and 2.2, while they might seem to focus on technical enhancements, they are essential in ensuring these services are reliable, secure, and sustainable. An enhanced e-government technical foundation, for instance, helps ensure that digital services are available 24/7, data is secured, and personal data are protected. These are all critical aspects of making a service truly people-centric. Sub-component 2.1. Strengthening the enabling environment for the development and trust of digital public services (US$9 million) 26. This sub-component is designed to strengthen the enabling environment for digital public services by enhancing the legal, strategic, and regulatory framework, improving government digital safeguards capabilities (cybersecurity and data protection), and developing the digital skills of public servants. Activities will include: (i) strengthening the legal, regulatory, institutional, and strategic frameworks to improve the governance of the digital economy sector and support safe and trusted delivery of and access by the people to private and public digital services; (ii) development of government cybersecurity capabilities to mitigate cybersecurity risks; (iii) development of government capabilities to manage data protection; and (iv) enhancing the digital skills of public sector agents, as well as promoting career advancement in IT professions, to facilitate the adoption and implementation of people-centric digital public services. Sub-component 2.2. Enhancing e-Government technical foundations and services (US$ 29 million) The objective of this sub-component is to assist the GoBF in further strengthening building blocks for public Mar 16, 2023 Page 12 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) service digitalization (especially public services under Sub-component 2.3) based on government-wide standards (whole-of-government approach) and best international practices. Activities will include: (i) supporting implementation of trusted electronic signatures in various digital transactions for effective public service delivery, (ii) implementing a national interoperability platform to facilitate the flow of data and the integration between the GoBF's different systems and digital applications and enable the deployment of integrated G2P and G2B services and build GOBF’s data intelligence capacities, (iii) strengthening the integrated national open data portal of the National Statistics and Demographics Institute and its content and (iv) strengthening data hosting infrastructure to ensure continuity of public service delivery and increase resilience against endogenous shocks such as climate events, pandemics, or conflicts. Sub-component 2.3. Expanding the availability and adoption of high-quality digital public services (US$ 16 million) 27. This sub-component is designed to support and catalyze the delivery and uptake of high-quality digital public services that are safe and reliable and that meet the needs of a large number of people and businesses of Burkina Faso, with a particular focus on the most vulnerable populations. The project will prioritize quick-win interventions (offering basic information and facilitation services), and then support the development of an incremental digital public service delivery model, once the building blocks are in place, that will enable more complex digitalization of processes of the selected use cases. Activities will include: (i)digitalization of three (3) public services with high impact on the population (G2P): entrance competitions and professional examinations for the public administration, administrative legal procedures and patient electronic medical records; (ii) Redesign and improvement of the one-stop-shop Digital Service Portal (“Guichet Virtuel de l’Administration Publique (GV- AP)�) with integrated multi-channel online access and capacity-building for improving and expanding access to public services; and (iii) expansion of the electronic Government Procurement (e-GP) system currently piloted under the WB-GPP Trust Fund project (P176026) to support the modernization and transparency of the public procurement at central and local levels. Component 3 - Developing Digital Skills for the Knowledge Economy (US$30.0 million) 28. This component aims to better equip individuals in Burkina Faso with the digital skills needed for emerging and future jobs in the digital economy. The component will help boost the adoption of digital services, enhance digital employability of youth, and increase the use of digital solutions among businesses especially MSMEs through enhanced digital capabilities overall. The component is fully in line with the key priorities of MDTPEC’s forthcoming 2028 digital skills roadmap (DSR, 2028). The Project will have an inclusive approach and will ensure participation of out-of-school youth, women, and underserved populations such as IDPs, host communities and PwDs with the aim of increasing their participation in the digital economy and enhancing their employability. The expected outcome is to make about 1,200,000 of the newly connected people under Component 1 benefit from digital literacy programs of which 40 percent are women and 40 percent live in rural areas. Moreover, 77,500 people will benefit from basic, intermediate, and advanced digital skills and digital entrepreneurship skills programs supported by the Project of which 30 percent are women, and a significant number are displaced persons, host communities, vulnerable groups (incl. PwDs), and unemployed youth. Sub-Component 3.1. Establishing an enabling environment for digital skills development (US$12.0 million) 29. This sub-component will focus on establishing a conducive enabling environment for digital skills delivery while building the institutional capacity needed to sustain priority reform areas of the Digital Economy as Mar 16, 2023 Page 13 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) highlighted in the PNDES II and the SN@DEN. The sub-component will support key building blocks in the design and implementation of digital skills programs while leveraging on current governmental and non-governmental efforts in the digital skills ecosystem. It will also have a key focus on inclusion, particularly vulnerable women and youth. Under this sub-component, the following activities will be supported: (i) establishment of a national digital skills development framework that will build upon and fill gaps of existing studies conducted by the GoBF ; (ii) establishment of a national digital center of reference to establish a stronger digital innovation culture and aims to increase the innovation ecosystem’s participation in the country’s digital transformation program. This new center of reference will support the development of digital skills in wider education sector by enhancing the use of technology for improved quality of education delivery, building the capacity of ICT teachers and guiding curriculum and training programs development; and iii) establishment of a national digital literacy program to accelerate digital adoption and inclusion. Sub-Component 3.2. Mainstreaming digital skills across the education system (US$10 million) 30. This sub-component will This sub-component will support the delivery of intermediate, advanced, and specialized digital skills program to meet labor market needs. In full complementarity with current education sector support in Burkina Faso, the sub-component is designed to mainstream digital skills delivery in the formal education system for greater sustainability. Under this sub-component, activities will include: (i) learning continuity through digital. The Project will support the Government’s continued efforts to address the ongoing insecurity-driven challenges facing the education system in Burkina Faso that has led to the closure of thousands of schools; (ii) targeted support to Lycées d’Excellence in terms of needed digital equipment and maintenance, digital skills training program development, and training of ICT teachers; and (iii) targeted support to higher education institutions in developing advanced and specialized digital skills training, in partnership with the private sector, on research and innovation in line with the strategic priorities defined under the national digital skills development framework elaborated under 3.1.b and working closely with the new center of reference established under 3.1.c. Sub-Component 3.3. Expanding the capacity of digital skills, entrepreneurship and innovation support providers (US$8 million) 31. This sub-component will expand digital inclusion for those outside the education system and strengthen the digital entrepreneurship culture to boost employability. Building upon lessons learned from the Burkina eGovernment project, the Project will scale up promising and impactful results achieved. Under this sub- component, the following activities will: (i) delivery of the digital literacy program in rural and peri-urban areas. This activity will implement the national digital literacy program defined under sub-component 3.1.c in targeted rural and peri-urban areas to boost digital public e-services adoption and productivity among self-employed workers; (ii) capacity development of the digital entrepreneurship ecosystem. The Project will support a digital incubation and acceleration program to expand digital entrepreneurship training and innovation building upon the achievements of the Burkina eGovernment project. Component 4: Project Management, Monitoring and Evaluation (US$ 6.0 million) 32. This component will provide support for the management and implementation of project-associated activities. Project financing under this Component will cover operating and staff costs of the Project Implementation Unit to be established under MDTPCE, including the recruitment of expert consultants in key Mar 16, 2023 Page 14 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) areas, such as project management, procurement, financial management (FM), environmental and social (E&S) safeguards, M&E, and technical domains relevant to various project components. This component will also cover independent audits and learning/training for key implementation partners. Special attention will be devoted to promoting equal participation of women in all decision-making bodies under the project and contributing to tackling barriers to their recruitment, retention, and promotion. Finally, the Component will also finance citizen engagement and communications, including a grievance redress mechanism (GRM). Component 5: Contingent Emergency Response Component (US$ 0.0 million) 33. In the context of overlapping crises, a CERC is added to the project to provide support to the GoBF to swiftly respond to an eligible crisis, including climate or natural disasters and public health emergencies. Including CERC, albeit with zero funding, provides for flexibility for an agile response to an imminent or actual emergency through quick disbursement of uncommitted balances from other components. The crisis response expenditures could cover, for instance, the facilitation of emergency payments to vulnerable groups of the population using mobile money or ensuring business continuity of core government functions. If the CERC were to be triggered, at the request of the Borrower, simplified procurement procedures shall apply during the emergency for civil works and goods purchases related to emergency response and recovery. However, the CERC is not expected to finance civil engineering works or any other activities that can induce risks and/or negative environmental and social impacts. . . Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Assessment of Environmental and Social Risks and Impacts . 34. The E&S risk classification, at appraisal stage, for the Project is considered to be substantial, as potential risks and impacts on the environment are not expected to be irreversible. The overall expected E&S impacts of the project will be generally positive. However, some adverse E&S impacts could arise from the proposed civil works planned under Components 1 and 2, which will consist of: (i) the expansion of the National Fiber Optic backbone, (ii) the expansion of last mile connectivity in rural area and (iii) the installation of a modular data center in a built-in container. Anticipated adverse impacts and risks include the potential acquisition of land, any loss of livelihoods and assets, and the impact of an influx of labor and associated sexual exploitation and abuse (SEA) and sexual harassment (SH) risks. Other risks include (i) soil erosion and degradation; (ii) occupational health and safety of workers; (iii) nuisances related to dust and noise emissions; (iv) waste from construction and the generation of hazardous waste, including e-waste; and (v) exclusion of vulnerable groups from project benefits, and community health and safety due to increased traffic and the risk of communicable diseases. 35. The GoBF has prepared a range of E&S instruments. These include an Environmental and Social Commitment Plan (ESCP), Labor Management Procedures (LMP), and Stakeholder Engagement Plan (SEP), Mar 16, 2023 Page 15 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) integrating a project-level Grievance Mechanism sensitive to SEA/SH. ESCP and SEP will be disclosed prior to project appraisal. These instruments contain measures to mitigate risks and impacts on vulnerable populations, for example, strengthening populations’ adaptive capacity by facilitating access to digital information on weather variations and shocks. The GoBF has also prepared Environmental and Social Management Plans (ESMPs) and Resettlement Plans (RAPs), to adequately mitigate all subprojects’ E&S risks and impacts once their location and scope are known (based on the feasibility studies to be conducted as part of project implementation that will determine specific sites of intervention and technical design of activities). Screening for environmental and social risks and impacts of subprojects will help determine the appropriate site-specific instruments, for example (i) Initial Environmental Assessment (IEA), including specific ESMP to mitigate potential environmental and social risks; and (ii) if project activities could lead to physical or economic displacement and if the determination is made, site-specific RAP/livelihoods improvement plans will be prepared and implemented prior to the start of works. These measures will be implemented, and the status of their implementation will be reviewed as part of the project M&E. E. Implementation Institutional and Implementation Arrangements 36. The project is using an operational and tested institutional arrangement already in place by the Government of Burkina Faso to implement the emergency program for the Sahel. This arrangement is currently being used by the Burkina Faso emergency local development and resilience project. Strategic project oversight and governance will be provided through a Project Steering Committee (PSC) that will be established and chaired by Ministry of Digital Transition, Posts, and Electronic Communications (MDTPEC). The PSC will oversee the implementation of this multi-sectoral project and will advise the Project Implementation Unit (PIU). Its mandate will include, inter alia: (i) approval of the annual work plan and budget (AWBP), (ii) reviewing project progress on bi-annual basis (additional meetings can be scheduled as needed); (iii) provision of strategic guidance and recommendations to the PIU and Technical Committee related to project implementation and/or any project restructuring needed. The PSC will be presided by the Minister of the Digital Transition, with Minister of Economy and Finance, Minister of Civil Service and Minister of Higher Education acting as Vice Presidents, and the project coordinator will be the permanent secretary. The PSC will also comprise representatives from the Presidence, Prime Minister’s Office, Ministry of National Education, Ministry of Higher Education, Minister of Finance, ARCOP, ARCEP, ANPTIC, ANSSI, CIL and other relevant key ministries that will play an advisory role. Under PSC’s oversight, an inter-ministerial Technical Committee (TC) will be created under the leadership of the MDTPEC and coordinated by the project coordinator for handling more detailed technical issues. The TC shall be responsible for providing overall operational guidance, general oversight of project implementation, performance monitoring, cross-sectoral coordination, development of the AWBPs, procurement plans, and progress reports. The National strategic steering committees for the oversight of the SN@DEN and National Strategy for the Modernization of Public Administration will be involved for technical guidance to the project. In addition, memoranda of understanding will be established between the various implementing agencies (e.g., Ministry of Higher Education, Ministry of Civil Service, ARCEP, ANPTIC, ANSSI, CIL) and the Project for the implementation of critical activities. This arrangement will ensure ownership of the project, coherence and coordination within MDAs across the national digital development agenda. 37. Overall implementation will be supported by a PIU supervised by the MDTPEC. This PIU will be headed by a project coordinator, recruited on a competitive basis, who will be responsible for day-to-day management of the project. The PIU will be responsible for overall project management and coordination, procurement, financial Mar 16, 2023 Page 16 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) management, environmental and social (E&S), M&E, and strategic communications. The PIU will also coordinate the different stakeholders in the technical working groups. Emphasis will be put on strong financial management and procurement. Key PIU staff recruited on a competitive basis, will include inter alia and as a minimum, a project coordinator, a digital chief officer, four (4) technical specialists (organization and change management; digital government (eGov); digital infrastructure; digital skills and innovation), and six (6) specialists on procurement, financial management, social safeguards and gender, environmental safeguards, M&E and communications. . CONTACT POINT World Bank Tounwende Alain Sawadogo Senior Digital Development Specialist Amina Debissa Denboba Senior Education Specialist Borrower/Client/Recipient Burkina Faso Implementing Agencies Ministry of Digital Transition, Posts and Electronic Communications Kisito TRAORE Secretary-General kisito.traore@tic.gov.bf FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Mar 16, 2023 Page 17 of 18 The World Bank Burkina Faso Digital Transformation Project (P177022) APPROVAL Tounwende Alain Sawadogo Task Team Leader(s): Amina Debissa Denboba Approved By Practice Manager/Manager: Country Director: Pauline Zoure Kabore 07-Sep-2023 Mar 16, 2023 Page 18 of 18