FOR OFFICIAL USE ONLY Report No: PPIAF000146 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 15.1 MILLION (US$ 20.0 MILLION EQUIVALENT) TO THE REPUBLIC OF CABO VERDE FOR THE DIGITAL CABO VERDE PROJECT May 2, 2025 Digital Development Global Practice Western and Central Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2025) Currency Unit = Cabo Verdean Escudo (CVE) 102 CVE = US$1 US$1.00 = SDR 0.75 FISCAL YEAR January 1 - December 31 Regional Vice President: Ousmane Diagana Regional Practice Director: Michel Rogy Division Director: Keiko Miwa Practice Manager: Jana Kunicova Task Team Leader (s): Camila Mejia Giraldo, Natalija Gelvanovska-Garcia The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) ABBREVIATIONS AND ACRONYMS AF Additional Financing AGYW Adolescent Girls and Young Women AI Artificial Intelligence ARME Multisectoral Regulation Agency for the Economy (Agência de Regulação Multissectorial da Economia ) CBA Cost-Benefit Analysis CRI Corporate Results Indicator General Directorate of Telecommunications and Digital Economy (Direção-Geral das Telecomunicações DGTED e da Economia Digital) DNRE National Directorate of State Revenue (Direção Nacional das Receitas de Estado ) DPI Digital Public Infrastructure FM Financial Management GBV Gender-Based Violence GCV Government of Cabo Verde GDP Gross Domestic Product GRM Grievance Redress Mechanism GRS Grievance Redress Service G2B Government to Business G2G Government to Government G2P Government to Person HRMIS Human Resources Management Information System ICT Information and Communication Technology IPF Investment Project Financing IPV Intimate Partner Violence IRR Internal Rate of Return Ministry of Modernization of the State and Public Administration (Ministério da Modernização do MMEAP Estado e da Administração Pública) MOF Ministry of Finance NAP National Adaptation Plan NDC Nationally Determined Contribution NPV Net Present Value NOSi Operational Core for the Information Society (Núcleo Operacional Para a Sociedade de Informação) PDO Project Development Objective PPSD Project Procurement Strategy for Development SHARE Senegal Horn of Africa Regional Express TA Technical Assistance UGPE Special Projects Management Unit (Unidade de Gestão de Projetos Especiais ) WACS West Africa Cable System WB/WBG World Bank/World Bank Group The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................................................... 1 II. DESCRIPTION OF ADDITIONAL FINANCING ............................................................................................................ 3 III. KEY RISKS ................................................................................................................................................................. 7 IV. APPRAISAL SUMMARY ............................................................................................................................................ 8 V. WORLD BANK GRIEVANCE REDRESS .................................................................................................................... 12 VI. PROPOSED CHANGES ............................................................................................................................................ 12 VII. DETAILED CHANGE(S)............................................................................................................................................ 13 ANNEX 1. Addressing Gender Gaps in Digital Cabo Verde AF....................................................................... 38 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) @#&OPS~Doctype~OPS^dynamics@afaprbasicdata#doctemplate OPERATION INFORMATION BASIC DATA - MAIN Product Information - Digital Cabo Verde Project (P171099) Operation ID Product/Financing Instrument P171099 Investment Project Financing (IPF) Task Team Leaders Camila Mejia Giraldo, Natalija Gelvanovska-Garcia Beneficiary Country/Countries Geographical Identifier Cabo Verde Cabo Verde Requesting Unit Responsible Unit AWCF1 (6550) DAWDU (9386) Approval Date Closing Date 12-Nov-2020 31-Oct-2025 Practice Area (Lead) Approval Fiscal year Digital Development 2021 Environmental and Social Risk Classification (ESRC) Low Is there collaboration between Bank and IFC? No Implementing Agency Directorate of Telecommunications and Digital Economy (Ministry of Digital Economy), Special Projects Management Unit, PIU (UGPE) (Ministry of Digital Economy) IMPLEMENTATION MODALITIES – MAIN Situations of Urgent Need of Assistance or Capacity Constraints [ ] Fragile State(s) [ ] Fragile within a non-fragile Country [✓] Small State(s) [ ] Conflict [ ] Responding to Natural or Man-made Disaster i The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Other Situations [ ] Financial Intermediaries (FI) [ ] Series of Projects (SOP) [ ] Performance-Based Conditions (PBCs) [✓] Contingent Emergency Response Component (CERC) [ ] Alternative Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) @#&OPS~Doctype~OPS^dynamics@afaproperationstatus#doctemplate OPERATION STATUS Development Objective (DO) Development Objective (Approved as part of Approval package on 12-Nov-2020) To strengthen Cabo Verde’s digital competitiveness foundations and improve the provision of digital public services Key Information from Last ISR Operation Ratings NAME IMPLEMENTATION LAST ISR RATINGS 09-Dec-2022 12-Jun-2023 18-Dec-2023 26-Jun-2024 23-Jan-2025 Progress towards ⚫ Moderately ⚫ Moderately ⚫ Moderately ⚫ Moderately ⚫ Satisfactory achievement of Satisfactory Satisfactory Satisfactory Satisfactory PDO Overall ⚫ Moderately ⚫ Moderately ⚫ Moderately ⚫ Satisfactory ⚫ Satisfactory Implementation Satisfactory Satisfactory Satisfactory Progress (IP) Overall Risk ⚫ Moderate ⚫ Moderate ⚫ Moderate ⚫ Moderate ⚫ Moderate Overall ESS ⚫ ⚫ ⚫ ⚫ ⚫ Satisfactory Performance Financial ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Moderately ⚫ Moderately Management Satisfactory Satisfactory Project ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory Management Procurement ⚫ Moderately ⚫ Moderately ⚫ Moderately ⚫ Moderately ⚫ Moderately Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Monitoring and ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory ⚫ Satisfactory Evaluation Disbursement Summary (in USD million) ii The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 IDA 19.37 15.96 3.43 82.32 Grants -- -- -- 0 @#&OPS~Doctype~OPS^dynamics@afaprprocessing#doctemplate BASIC DATA – ADDITIONAL FINANCING Additional Financing No. 1 Additional Financing Type [✓] Activities are being added to expand the scope of the operation, perhaps in geography or in outputs (Scale-up) The operation has incurred increased costs due to inflation, exchange rate changes, and factors that were not [ ] anticipated at appraisal (Cost-overrun) The operation has experienced shortfalls in co-financing, counterpart financing, or cost recovery that were [ ] anticipated at appraisal but did not materialize. (Financing gap) The design of the operation has changed, and the new designs cost more than the original ones (Change in Project [ ] Design) Expected Approval Date Review Type/Corporate Review Level 02-May-2025 Regular Decision Meeting (DM) Will consulting services be required? Is this an Urgent Need or Capacity Constraint request? Yes No IMPLEMENTATION MODALITIES – ADDITIONAL FINANCING Situations of Urgent Need of Assistance or Capacity Constraints [ ] Fragile State(s) [ ] Fragile within a non-fragile Country [✓] Small State(s) [ ] Conflict [ ] Responding to Natural or Man-made Disaster Other Situations [ ] Financial Intermediaries (FI) [ ] Series of Projects (SOP) [ ] Performance-Based Conditions (PBCs) [✓] Contingent Emergency Response Component (CERC) iii The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) [ ] Alternative Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) @#&OPS~Doctype~OPS^dynamics@afaprcostfinancing#doctemplate COSTS & FINANCING Summary (Total Financing in US$, Millions) Proposed Last Approved Additional Total Total Operation Cost 20.00 20.00 40.00 Total Financing 20.00 20.00 40.00 Of which IBRD/IDA 20.00 20.00 40.00 Financing Gap 0.00 0.00 Financing Details (in US$, Millions) Proposed Source Last Approved Additional Total International Development 20.00 20.00 40.00 Association (IDA) IDA Credit 20.00 20.00 40.00 Total Financing 20.00 20.00 40.00 IDA Resources (in US$, Millions)- Additional Financing Credit Grant SML Guarantee Total Cabo Verde 20.00 0.00 0.00 0.00 20.00 National Performance- 20.00 0.00 0.00 0.00 20.00 Based Allocations (PBA) Total 20.00 0.00 0.00 0.00 20.00 @#&OPS~Doctype~OPS^dynamics@afaprsort#doctemplate iv The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) SYSTEMATIC OPERATIONS RISK- RATING TOOL (SORT) Last Approved Rating Risk Category Proposed Rating (ISR Seq. 08) Package - 23 Jan 2025 Political and Governance ⚫ Moderate ⚫ Moderate Macroeconomic ⚫ Substantial ⚫ Moderate Sector Strategies and Policies ⚫ Moderate ⚫ Moderate Technical Design of Project or Program ⚫ Moderate ⚫ Moderate Institutional Capacity for ⚫ Substantial ⚫ Moderate Implementation and Sustainability Fiduciary ⚫ Substantial ⚫ Moderate Environment and Social ⚫ Low ⚫ Low Stakeholders ⚫ Low ⚫ Moderate Overall ⚫ Moderate ⚫ Moderate @#&OPS~Doctype~OPS^dynamics@afaprclimate#doctemplate CLIMATE Climate Change and Disaster Screening Has this operation been screened for short-term and long-term climate change and disaster risks? Yes, it has been screened and the results are discussed in the Appraisal Document Where risks exist, have potential resilience-enhancing measures been identified in the appraisal document? Yes Does this operation address specific risks, vulnerabilities, gaps or needs with respect to Climate Change that are identified in the SCD or the CPF? Yes POLICY COMPLIANCE Does the operation depart from the CPF in content or in other significant respects? No Does the operation require any waivers from Bank policies? No @#&OPS~Doctype~OPS^dynamics@afaprteam#doctemplate TEAM Core Team Name Role Specialization ADM Responsible? Camila Mejia Giraldo Team Leader Digital Development Yes v The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Natalija Gelvanovska- Team Leader Digital Development No Garcia Financial Management Seynabou Sarr Financial Management Yes Specialist Financial Management Fatou Mbacke Dieng Financial Management No Specialist Sandra Helena Santos Lima Procurement Specialist Procurement Yes Fonseca Mamadou Mansour Procurement Specialist Procurement No Mbaye Laurent Mehdi Brito Procurement Specialist Procurement No Mountaga Ndiaye Procurement Specialist Procurement No Ndeye Fatou Mbacke Procurement Specialist Procurement No Pedro Carvalho Oliveira Environmental Specialist Environmental Specialist Yes Ramos Lucienne M. M'Baipor Social Specialist Social Specialist Yes Matthieu Louis Bonvoisin Counsel Legal No Catarina Isabel Portelo Counsel Counsel No Anta Tall Diallo Procurement Team Procurement No Nikolai Alexei Sviedrys Procurement Team STEP No Wittich David Satola Team Member Legal No Evelyne Huguette Team Member Assistant No Madozein Paulette C.E. Aida Thioune Team Member Assistant No Zoua James L. Neumann Team Member Legal No Jose C. Janeiro Team Member Finance No Ivan Gonzalez Berenguer Team Member Digital Development No Pena Belen Rodriguez Martinez Team Member Digital Development No vi The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Antonio Manuel Baptista Team Member Private Sector No Wolfgang Mohammad Team Member Finance No Taghi Chadab Eric Yves Dacosta Team Member Assistant No Emily Elaine Gardner Team Member Education No Ingrid Cesarine Meka Team Member Financial Management No vii The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. Introduction 1. This Project Paper seeks the approval of the Regional Vice President to provide Additional Financing (AF) in the amount of US$20 million equivalent for the Digital Cabo Verde Project (the Parent Project). To enhance the Parent Project’s development impact, the Government of Cabo Verde (GCV) requested AF on January 20, 2025 1, to scale-up Parent Project activities in the following areas: (i) enhance the legal framework for the government digital transformation and the implementation of emerging technologies; (ii) improve internet access and increase bandwidth in schools and other government entities; and (iii) develop a single government portal which promotes greater efficiency and reduces bureaucracy. The latter being the main motivation for the GCV to request this AF. All institutional arrangements provisions remain unchanged. The Parent Project will also be restructured to include: (i) revision of the Project Development Objective (PDO) and results; (ii) extension of the closing date until October 31, 2028; and (iii) changes to components and cost. For Official Use Only 2. The GCV has set the foundations, with the support of the Parent Project, to achieve these objectives. First, the country has developed a robust international connectivity infrastructure, including access to three international submarine cables (‘Ella Link,’ West Africa Cable System (WACS), and Senegal Horn of Africa Regional Express (SHARE)), and an upgraded inter-island fiber backbone. Second, Cabo Verde has established important elements of the digital legislative framework, including prioritizing digital transactions and services with updates to the Law of Administrative Modernization 2 and the implementation of digital signatures 3 . Finally, the GCV has established a robust institutional framework for digital transformation and worked on the strengthening of digital skills in the country, with institutions like Operational Core for the Information Society (Núcleo Operacional Para a Sociedade de Informação, NOSi) and the Ministry of Digital Economy (MDE) and initiatives such as the Weblabs program, which has trained nearly 14,000 students in web development, robotics, and digital marketing. 3. These strong foundations allowed the Parent Project to advance on other important digital transformation activities that will be scaled up through this AF. A major achievement of the Parent Project has been the implementation of the Consular Portal, which drastically changed the way Cabo Verdean citizens in the diaspora access government services through digital channels. The Consular Portal allows 62 percent of service requests to be processed within one day, with more than 68 percent of payments being made electronically, and the time taken to issue electronic documents being reduced by 85 percent. Due to its success in the digitalization of services and its user-centric design, the Consular Portal became one of the preferred channels for citizens and businesses outside the country to access government services, motivating the GCV to transform this portal into a Government Digital Services Single Portal, which is at the core of this AF. It is envisioned that through the AF the number of services offered will be scaled up and that this single portal will digitally transform public services by consolidating them into a single transactional space, ensuring efficiency, accessibility, and transparency. The Parent Project has allowed the GCV to advance significantly in the technical design of the Single Portal, developing a roadmap with a prioritization of services and a methodology, and the blueprint for the strengthening of the existing Digital Public Infrastructure (DPI). The Single Portal will operate under the direct supervision of the Prime Minister, allowing for interministerial coordination, and will be led and implemented by the newly appointed 1 The AF was requested by the GCV in a letter, dated January 20, 2025 (Ref N. 66/GVPMMFFE). ator for the team, and its oversight falls under the Minister responsible for State Modernization and Public Administration. 2 NAP of Cabo Verde (2022-2030) https://unfccc.int/sites/default/files/resource/NAP_Cabo%20Verde_EN.pdf 3 The Decree No. 27/2023, establishes the rules applicable to trust services and regulate the validity, effectiveness, and probative value of electronic documents. Additionally, the decree addresses the recognition and acceptance, within the Cabo Verdean legal system, of electronic identification means for individuals and legal entities. It also sets out the rules applicable to the Electronic Certification System. Page 1 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Digital Services Team4. As described in the Economic and Financial Analysis section, the AF for Digital Cabo Verde Project is expected to contribute to sustainable economic growth, through long-term cost-savings, efficiency, and productivity gains, fueled by greater digital adoption by citizens, businesses, and government. Overall, results from the economic analysis point to the economic viability of the project’s investment, with positive Net Present Values (NPVs) and Internal Rate of Returns (IRRs) above the discount rate in the optimistic and neutral scenarios. 4. Enhancing Cabo Verde’s resilience to climate change, including by leveraging digital technologies, will be critical given the country’s high vulnerability to disaster risks. Cabo Verde is highly exposed to growing climate-related shocks with significant socio-economic impacts. Cabo Verde is the 90th most vulnerable country and the 78th most ready country according to the 2022 Notre Dame Global Adaptation Initiative Index, reflecting that adaptation challenges persist, but Cabo Verde is advancing its efforts to adapt as outlined in its National Adaptation Plan (NAP) 2022-20305. As a Sahelian Small Island Developing State with a densely populated coastline, it is highly exposed to extreme weather events like droughts, heavy rainfall, tropical storms, and rising sea levels. Limited, climate-dependent livelihoods, such as rainfed agriculture, fishing, and tourism, further constrain adaptive capacity. Strengthening climate resilience is crucial, with For Official Use Only digital technologies playing a key role through robust digital infrastructure and public services that ensure business and service continuity during extreme climate events. B. Parent Project Description and Current Status 5. The Parent Project was approved by the Board of Executive Directors on November 12, 2020, for a total investment equivalent to US$20 million in IDA financing. The Parent Project became effective on December 22, 2020, and is currently set to close on October 31, 2025. The impact of COVID-19 on Cabo Verde’s economy (the largest economic contraction on record in the country) resulted in changes in the government’s priorities since the Parent Project was negotiated and approved. Consequently, in June 2022, the Parent Project was restructured at the request of the GCV, to adjust the Results Framework targets and indicators and the allocation of resources among the different components and activities. The restructuring increased project support for digital entrepreneurship under Component 2, with the objective of enabling economic recovery and supporting the private sector in the post COVID-19 recovery period. In addition, to increase government revenues, the government requested a new activity to support the digitalization of the tax administration system. 6. The PDO is to strengthen Cabo Verde’s digital competitiveness foundations and improve the provision of digital public services. More specifically, the project seeks to improve the enabling legal and regulatory environment for a vibrant, safe, and inclusive digital economy; strengthen its digital competitiveness through better connectivity, skills, and entrepreneurship; and boost digital public services and marketplace. 7. To achieve these objectives, the project has been structured around the following main components: a. Component 1: Enabling Legal and Regulatory Environment (US$2.2 million equivalent). This component focuses on supporting the GCV in improving the legal and regulatory environment for a vibrant, inclusive and safe digital economy. b. Component 2: Digital Competitiveness (US$7.5 million equivalent). This component aims to better equip individuals and businesses across the country to be more competitive in the digital economy’s job market and to stimulate innovation and productivity growth. c. Component 3: Digital Public Services and Marketplace (US$9.0 million equivalent). This component supports activities designed to boost the GCV’s capacity to better deliver digital public services in Government to Business (G2G), 4 The Digital Services Team in Cabo Verde is created under Resolution No. 42/2024. Article 8 of this resolution outlines the formation of the Digital Service Team, composed of technical experts responsible for the operationalization of the project’s objectives. The team has autonomy in its actions and resources to ensure the effective implementation of digital public services. Additionally, the Prime Minister appointed a coordinator for the team, and its oversight falls under the Minister responsible for State Modernization and Public Administration. 5 NAP of Cabo Verde (2022-2030) https://unfccc.int/sites/default/files/resource/NAP_Cabo%20Verde_EN.pdf Page 2 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Government to Government (G2B), and Government to Person (G2P) domains, particularly critical during and after the COVID-19 pandemic. d. Component 4: Project Implementation Support (US$ 1.3 million equivalent). This component provides support for the management and implementation of project-associated activities. e. Component 5: Contingency Emergency Response Component (US$0 million equivalent). This component was added to provide support to allow the GoCV to agile respond to emergencies, including the COVID-19 crisis. 8. As a result of continued improvements in implementation, the Parent Project is reporting a satisfactory progress towards achieving the PDO and satisfactory Implementation Progress. The performance of all Parent Project components, including project implementation support, has also been satisfactory. Although the Parent Project’s original closing date is October 31, 2025, several indicators, both at the PDO and intermediate level, have already reached or surpassed their targets (i.e. increase in mobile broadband penetration rates – 85.8 percent as of March 2025, above the target of 80 percent; increased number of digital solution firms – 27 startups, above the target of 15 startups; telecom/ICT guidelines, policies and/or regulations drafted and submitted to the relevant higher authorities – one drafted and For Official Use Only submitted, with a target of one; cybersecurity policy and regulations adopted; and, Strategic Realignment of NOSi completed). Furthermore, other intermediate indicators, such as the number of additional basic and secondary schools with improved access to internet for pedagogical purposes or Digital Government Services Platforms upgraded, are also on track to achieving or surpassing the targets set in the Results Framework at appraisal and restructuring. 9. There are several valuable lessons learned to be drawn from the Digital Cabo Verde Project to enhance the implementation of the proposed AF. First, strong governance and clear leadership are critical to avoid delays, as evidenced by the project's slow start due to changes in the Ministry of Finance's (MOF) oversight unit and the late establishment of the Project Steering Committee. Second, proactive coordination among implementing agencies, beneficiaries, and stakeholders is essential to address bottlenecks, particularly in procurement and activity planning. Third, flexibility in project design—such as the restructuring to prioritize digital entrepreneurship post-COVID—can enhance relevance, but changes must be managed carefully to avoid disrupting timelines. Fourth, capacity-building for local teams, especially in procurement and technical evaluation, is vital to ensure smooth implementation. Finally, embedding robust monitoring mechanisms and regular reassessment of lagging activities can help realign resources and maintain progress toward development objectives. 10. Compliance with Parent Project legal covenants is satisfactory. More specifically: (i) all Parent Project implementation personnel was recruited on a timely manner; (ii) the financial management (FM) system is satisfactory; (iii) the annual work programs have been submitted on time and the financial statements have been certified without qualification; and (iv) the external audit report was submitted within the time specified in the financing Agreement, with all recommendations being implemented. II. DESCRIPTION OF ADDITIONAL FINANCING 11. The AF is a proposed US$20.00 million equivalent IDA credit. 12. Component 1. Enabling Legal and Regulatory Environment (Total US$2.85 million equivalent of which US$0.65 million equivalent AF). This component is being scaled up to expand the Parent Project activities with the objective of further strengthening the legal and regulatory environment to boost the development of the country’s digital economy. The main goal is to enhance the legal framework for the government digital transformation and the implementation of emerging technologies benefiting agencies like Multisectoral Regulatory Agency (Agência de Regulação Multissectorial da Economia, ARME) and Ministry of Modernization of the State and Public Administration (Ministério da Modernização do Estado e da Administração Pública, MMEAP), as well as to continue with the strengthening of NOSi’s institutional capacity, all necessary for enabling the development of the Government Single Portal. The following activities will be scaled up under the following subcomponents: Page 3 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) a. Subcomponent 1.1: Foundational and forward-looking ICT policies and regulations (Total US$0.90 million equivalent of which US$0.50 million equivalent AF) i. Legal Framework Digital Transformation. The objective of scaling-up this activity is to further strengthen the legal framework for the government’s digital transformation. This activity will finance just in time legal assistance to support the development, update and implementation of the legal and regulatory framework needed for the continuous digital transformation of the government, focusing on areas like the regulation of the Administrative Modernization law. ii. Capacity Strengthening for ARME. The objective of this activity is to scale up support towards ARME’s capacity to design and implement legal and regulatory frameworks. Building on the activities of the Parent Project, the AF will expand the technical assistance (TA) and training in priority areas such as digital transactions and, on the telecommunications side, the AF will scale up support to developing legal framework and implementation of infrastructure sharing regulation. This work was initiated under the Parent Project through TA that included a thorough benchmarking analysis6. iii. Strategic and legal framework for emerging technologies. The objective of this activity is to support the For Official Use Only formulation, adoption, and implementation of a robust strategic and legal framework for emerging technologies. This activity will finance support for the design and implementation of a strategy for Artificial Intelligence (AI) and other emerging technologies and its implementation to improve government efficiency and services (i.e., proactive services). b. Subcomponent 1.3: Improved institutional structure and capacity (Total US$1.65 million equivalent of which US$0.15 million equivalent AF) i. Capacity Strengthening for NOSi . The objective of this activity is to scale up support to NOSi’s key role in the implementation of digital transformation projects across the government. This activity will continue financing NOSi’s support for the implementation of digital transformation projects7 in the GCV. 13. Component 2: Digital Competitiveness (Total US$10.00 million equivalent of which US$2.50 million equivalent AF). This component is being scaled up to expand the activities to support the government’s efforts to strengthen key enablers of a dynamic digital economy with a focus on connectivity. a. Subcomponent 2.1: Digital connectivity for education (Total US$4.35 million equivalent of which US$2.50 million equivalent AF) i. Expanded Digital Connectivity. The objective of this activity is to provide AF for the improvement of internet access and increase bandwidth in schools and other government entities to enable the access to and the use of online education platforms and digital public services. This activity will expand the connectivity provided (currently to high schools only) under the Parent Project, and specifically it will finance: (i) TA to conduct a feasibility study, encompassing a vulnerable groups’ digital gap assessment including women in the districts where the schools with expanded connectivity are located 8 , and prepare bidding documents to purchase additional broadband capacity for new schools and other government entities; and (ii) to purchase of international bandwidth in the market that will be delivered by existing operators to additional schools and government entities9. 6 Digital legislation related to digital transactions and infrastructure sharing have been supported through the Parent Project Digital Cabo Verde (P171099) and the Fiscal Space and Sustainable Growth Development Policy Financing (P181310) and (P179265). 7 This support will be provided following the Memorandum of Understanding (MOU) signed by NOSi and UGPE under the Parent Project Digital Cabo Verde. 8 This assessment will provide valuable information regarding vulnerable groups and the digital gender gap in these districts, which may inform gender specific interventions to reduce the identified gap. In addition, the information gathered will serve as a proxy to calculate the gender specific PDO indicator on broadband internet usage in the country more accurately. 9 This subcomponent focuses on expanding broadband capacity to schools rather than physical infrastructure development. Page 4 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) 14. Component 3: Digital Public Services and Marketplace (Total US$25.00 million equivalent of which US$16.00 million equivalent AF). This component is being scaled up to support the government’s major objective of digitizing 60 percent of all government services by 2026, as well as centralizing the delivery of services through a single government portal for digital public services, building on the achievements of the Parent Project through the Consular Portal. a. Strengthening of Digital Public Infrastructure (DPI) (US$2.00 million equivalent AF). The objective of this activity is to provide AF to strengthen the country’s DPI to enable and facilitate the delivery of additional end-to-end digital services. This activity will finance: (i) the strengthening of Cabo Verde’s existing Interoperability framework and government digital business architecture (PDEX 10 ); (ii) the enhancement of the current digital identity and authentication frameworks (Chave Movel Digital11); (iii) the expansion of the present government cloud12; and (iv) the implementation of a robust digital payment’s platform, including digitalization and strengthening of the treasury. b. Digitalization of Public Services and Single Government Portal (US$14.00 million equivalent AF). The objective of this activity is to finalize the establishment of the portal and scale up the digitalization of services. Activity will For Official Use Only increase the government efforts to digitalize more public services and facilitate the access to them by citizens and businesses through a single window13. This activity will finance: (i) the strengthening of the Digital Services Team, in charge of implementing the Single Government Portal; (ii) the development of guidelines and directives for the homogenization of digital architecture across the government; (iii) the digitalization of public records; (iv) the business processes reengineering, enhancement of user experience (UX) and the digitalization of the prioritized government services on the digital services team action plan; (v) the development of the Single Government Portal; (vi) the implementation of communications and change management activities for government employees, citizens and businesses focused on digital transformation and the use of digital services; (vii) the strengthening of digital inclusion through the implementation of initiatives like a digital ambassadors program to support businesses and citizens in the adoption and use of digital services, and the development of multilingual content; and (viii) the design and implementation of data analytics, including gender-disaggregated data, and digital services user’s satisfaction evaluations for the continuous improvement of the service delivery and user experience. This activity will also include the digitalization of prioritized back-office processes and systems14, including: i. Integrated Human Resources Management Information System (HRMIS). The objective of this activity is to support the government in the development and implementation of an integrated Human Resources Management System that can effectively interoperate with other government systems and efficiently perform all HR functions. This activity will finance: (i) the consolidation and improvement of the civil servants’ database, eliminating potential inconsistencies on the MMEAP (Ministério da Modernização do Estado e da Administração Pública/Ministry of State Modernization and Public Administration) database; (ii) the digitalization of HR records; (iii) equipment for government entities to support the rollout of the HMIS; (iii) design and roll out of the HMIS; 10 PDEX Integration and Interoperability platform is one of the essential axes for the development of digital governance in the GoCV. The PDEX platform consists of an integration and interoperability layer between applications and services, providing a secure, scalable and easy-to-maintain environment. 11 Cabo Verde‘s Chave Movel Digital (CMD) is a simple and secure digital authentication and signature mechanism for users of pub lic services, made available online by the State of Cabo Verde, created by Legislative Decree No. 5/2020, of July 21. It consists of a permanent password (PIN), chosen and changeable by the citizen, as well as a single and temporary numerical code for each authentication. It allows the citizen holding the CMD to access various dig ital services on public portals and sign documents with a single login. 12 Cabo Verde‘s government's cloud computing service aims to optimize the infrastructure services of public bodies. This model a voids increasing the costs of the State's data processing centers, as it allows the sharing of costs of technological infrastructure and its maintenance. The Cloud Platform adopted and managed by NOSi has allowed several institutions to acquire IaaS (Infrastructure as a Service), Backup/Restore, etc. services, to modernize and implement business support systems with greater agility, efficiency and data security, thus allowing greater quality and availability of services. 13 The main institution responsible for the implementation of the Single Government Portal will be Digital Services Team. NOSI which has been at the forefront of digital transformation, will provide support to the Digital Services Team, mainly in the implementation of DPI. The Casa do Cidadão will continue to operate and is actively enhancing its services through collaboration with the Digital Services team. 14 The government has already started all the preparatory work for the expansion of the activities under the AF. These are all activities that were already started under the Parent Project, like the blueprint for the HR system, the review of HR processes and civil services organizational chart. Page 5 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) and (iv) communications and change management activities to support the implementation and use of the system by public sector employees. ii. Tax Administration System. The objective of this activity is to continue supporting the digital transformation of one of Cabo Verde’s economy key agencies, the National Directorate of State Revenue (Direção Nacional das Receitas de Estado, DNRE). This activity will finance: (i) the strengthening of key enablers for the digital transformation of the agency; (ii) the automatization of processes and interoperability with commercial Banks; (iii) the automatization of tax reimbursement; and (iv) the design and implementation of the automatic filling of tax returns. Other changes 15. Extension of the closing date. To allow for the achievement of all the PDO and intermediate indicators, as well as the implementation of the AF activities, the closing date of the Parent Project will be restructured to extend by three years, to October 31, 2028. This is the first extension of the closing date. For Official Use Only 16. PDO. To reflect the scale-up of project activities towards the enhancement of the provision and usage of digital public services, the PDO will be clarified in the following way “to strengthen Cabo Verde’s digital competitiveness foundations and improve the provision and usage of digital public services”. 17. Results Framework. The Results Framework has been revised to reflect the extension of the closing date and adjusted targets due to the activities scale-up. Additionally, following the introduction of the new World Bank Group (WBG) Corporate Scorecard, the Results Framework has been revised to be streamlined and aligned with the new digital corporate results indicators (CRI). The changes to the Results Framework are detailed in the table below: 18. Table 1: Changes in Results Framework comparing Parent Project and AF. Type of Indicator Parent Project Indicator AF Indicator Type of change and Justification Revised Indicator and target Mobile broadband (3G and People using broadband internet (new Change made in the indicator to align above) penetration rates (unique PDO use) (Number of people) (Disaggregation with the WBG CRI and in the target to mobile-broadband subscriptions by female and youth) capture the scale-up in project per 100 inhabitants) (Percentage) activities People using digitally enabled services Revised Indicator and target Share of people using online (Number of people) (Disaggregation by Changes made in the indicator to align government services as a youth, female, new and enhanced users)” PDO with the WBG CRI and in the targets to percentage of the total number of People using payment services (Number capture the scale-up in project internet users (Percentage) of people) (Disaggregation by digital and activities female) Revised Indicator and target Average monthly wholesale price Change made to adjust indicator no Intermediate of international E1 capacity link Fixed-broadband Internet basket (as a longer being collected by the Indicator from capital city to Europe (2 percentage of GNI per capita) government and in the target to Component 1 megabits per second, in US$) (Percentage) capture the scale-up in project Amount (US$) activities Revised Indicator and target Telecom/ICT guidelines, policies Change made in the indicator to align Intermediate and/or regulations drafted and with the WBG Digital Global Challenge Indicator Reforms adopted (Number) submitted to the relevant higher Program (GCP) Results Framework and Component 1 authorities (Number); in the target to capture the scale-up in project activities Intermediate Studies to support the Digital Revised target Studies to support the Digital Economy Indicator Economy Strategy elaborated Change made in the target to capture Strategy elaborated (Number) Component 2 (Number); the scale-up in project activities Page 6 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Type of Indicator Parent Project Indicator AF Indicator Type of change and Justification Revised Indicator and target Number of additional basic and Change made in the indicator to align Intermediate secondary schools with improved Facilities connected to broadband internet with the WBG Results Framework for Indicator access to internet for pedagogical (Number) (Disaggregation by basic and the Digital Business Line on Component 2 purposes (Number) secondary schools) connectivity and in the target to (Disaggregation by: Female) capture the scale-up in project activities Intermediate New Indicator Public services available on the Single Indicator N/A Indicator added to capture the scale- Portal (Percentage) Component 3 up in project activities Intermediate New Indicator Single Portal established and operational Indicator N/A Indicator added to capture the scale- (Yes/No) Component 3 up in project activities Intermediate New Indicator For Official Use Only Digital ambassadors appointed (Number) Indicator N/A Indicator added to capture the scale- (Disaggregation by female) Component 3 up in project activities 19. Institutional and Implementation Arrangements. The AF will utilize the same institutional and implementation arrangements as under the Parent Project, which include a Steering Committee. The Special Projects Management Unit (Unidade de Gestão de Projetos Especiais, UGPE) under the MOF will continue to provide all fiduciary services and implementation support to the project including M&E, procurement and safeguards. The ongoing MOU between the MOF/UGPE and NOSI has been included as a legal covenant in the legal agreement of the project and will be extended until the new end date of the project. Therefore, the MoU shall be updated not later than one (1) month from AF effective date and thereafter be maintained during the implementation of the Project. The new activities included under Component 3 of the project will be technically led by the newly established Digital Services Team, which will also participate in the Project Steering Committee. Furthermore, the Project Operations Manual has been updated to incorporate the new activities under the AF. III. KEY RISKS 20. The AF does not affect the overall risk rating of the Parent Project, which continues to be assessed as Moderate. The overall risk rating reflects moderate risk for political and governance changes that could hinder implementation and moderate risk that sector policies and design would change due to external factors and despite the government’s commitment to digital economy. The institutional capacity for implementation and sustainability risk has been downgraded to moderate, as the AF will focus on scaling-up activities already successfully implemented by the project, demonstrating the government's institutional capacity for implementation and their sustainability. The macroeconomic risk has been downgraded to moderate, as the authorities remain committed to continuing to improve fiscal and debt management, to lower the debt burden and enhance the provision of public services over the medium term, actions are supported by the World Bank and the International Monetary Fund (IMF). Furthermore, the government has continuously prioritized digital transformation as a pillar for the diversification of the economy, even in challenging economic periods such as the COVID-19 pandemic. The stakeholder risk has been upgraded to moderate, given the recent reshuffling in the Government Cabinet and the upcoming elections. Nevertheless, GCV has shown a clear commitment to digital transformation aiming to become a “Digital Hub for Africa”, an objective that has transcended different electoral periods, proven by the continuity in the public policies in the sector. Furthermore as a mitigation measure, the project has ensured the engagement and participation in the project of technical level officials who are career public servants and not political appointees. The fiduciary risk has been downgraded to moderate, as the Institutional arrangements for the AF will be the same of the Parent Project and the UGPE will maintain a qualified procurement team. Page 7 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) IV. APPRAISAL SUMMARY A. Economic Analysis 21. A review of the economic analysis of the Parent Project was conducted during appraisal to consider the new activities. In line with the Parent Project, AF for Digital Cabo Verde Project is expected to contribute to sustainable economic growth, through long-term cost savings, efficiency, and productivity gains, fueled by greater digital adoption by citizens, businesses, and government. 15 Improved accessibility and affordability of broadband services scaled up under Components 1 and 2 are expected to stimulate Gross Domestic Product (GDP) and job growth in the country. Previous research suggests that a 10 percent increase in mobile broadband penetration in developing countries is associated with a 2.46 percent increase in GDP growth16. In addition, scale up of Digital Public Services and Marketplace activities under Component 3 are expected to further accelerate public services digitalization and technology adoption among public officials, citizens and businesses. This will contribute to a whole of government approach by the GCV, which will lead to an increased competition, productivity, and consumer welfare among citizens and businesses (Figure 1). For Official Use Only Figure 1: Benefits of digital technologies through increased inclusion, efficiency, and innovation. Source: World Bank (2016). World Development Report: Digital Dividends. 22. The AF economic and financial analysis undertaken follows a standard Cost-Benefit Analysis (CBA) approach and reveals a positive Net Present Value (NPV) and Internal Rate of Return (IRR). The model relies on available secondary data and reasonable assumptions, based on prior experience, but also additional evidence sourced from consultations, interviews conducted and other similar interventions. The CBA model was used to run a cash flow and financial analysis that features three different scenarios: Optimistic, Pessimistic and Neutral. Where possible, the model also ran sensitivity analysis to quantify the benefits and costs attributable to the project against current baseline indicators. 23. Discounted at 11.67 percent,17 the Neutral scenario NPV reaches US$1.59 million and yields a 16 percent IRR. Cashflows are calculated over a span of ten years and they come from three main sources: economic impact in GDP growth due to broadband penetration increase; economic impact due to productivity gains and savings through public digital services and platforms; and economic impact through increased internet access and bandwidth in schools and other government entities. For the optimistic and pessimistic scenarios, the NPV and IRR are US$6.71 million and 28 percent, and US$2.39 million and 5 percent, respectively. Overall, results from the economic analysis point to the economic viability of the AF investment, with positive NPVs and IRRs above the discount rate in the optimistic and neutral scenarios. 24. Some expected project impacts are hard to quantify due to the lack of data or methodological limitations, as is the case for AI and other emerging technologies activities under Component 1. Furthermore, it is worth noting that project impacts may go beyond the calculated estimated results, since there are some activities that could produce 15 World Bank (2016); World Development Report: Digital Dividends. 16ITU (2020); How broadband, digitization and ICT regulation impact the global economy. Global econometric modelling. 17 The discount rate used for the calculations is 11.67 percent which includes a spread reflecting the project risk and nuances. Source: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html Page 8 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) economic and social gains on top of those included in the economic and financial analysis. Those gains may come from the increase of online services and transactions that could occur from the improvement of safety and trust on the digital workspace at both the national and regional level. B. Technical 25. The project is aligned with the Paris Agreement on both mitigation and adaptation. The AF is consistent with Cabo Verde’s NAP 18 and Nationally Determined Contribution (NDC) 19 that made an unconditional pledge to reduce economy-wide greenhouse gas (GHG) emissions by 18 percent below business-as-usual within 2030. The AF will directly contribute to mitigating climate change by promoting the digitalization of public services with expected contributions to decarbonization (in particular, less in-person visits needed to carry-out a transaction). This is in line with the mitigation contribution #3 under the country’s NDC which focuses on lowering the carbon intensity of mobility thro ugh digitalization. The AF activities are limited to public administration, digitalization, and capacity building, which are considered universally aligned for mitigation and will actively contribute to or do no harm to decarbonization. The Climate and Disaster Risk Screening conducted for the Parent Project is relevant to the AF, given it is a scale-up of the activities under the Parent For Official Use Only Project in the same geographical scope, and key climate risks are outlined in paragraph 4. Climate risks are not likely to have a material impact on the AF activities or achievement of the PDO. However, the AF supports effective disaster risk management through improved and uninterrupted electronic service delivery in the face of climate shocks and will apply harmonized climate resilience standards in the legal and regulatory framework. Paragraph 37 provides more information on measures included in the AF to respond to climate mitigation and adaptation risks. C. Financial Management 26. In line with the guidelines stated in the FM Manual issued on March 1, 2010 (last updated September 2021) an FM assessment was conducted for the Parent Project. The FM arrangements for this AF will be the same as those under the Parent Project, including the FM risk assessed, which is moderate. As all mitigating measures identified have been implemented for the Parent Project to improve FM dispositive, the FM satisfies the WBG’s minimum requirements. 27. The overall FM performance of the Parent Project is rated Moderately Satisfactory due to the failure to implement the repeated recommendations to justify the salaries of the Weblabs monitors from October to December 2023 for an amount of US$944,115. The project has no overdue audits. 28. Several measures will be taken to accommodate the AF in the existing FM system and ensure readiness for implementation: (i) update of the FM manual to reflect specificities of the AF; (ii) update of the accounting software for the bookkeeping of the AF activities; (iii) amendment of the external auditor contract to include the AF in its audit scope; and (iv) update of the internal auditor terms of references to include the AF in its scope of intervention, one month after the approval of the AF. 29. Disbursement for the project will follow the existing disbursement arrangements for the original project. Disbursements under the Parent Project are statement of expenditure based. Direct Payment method will apply as appropriate. The existing designated account will be used also for the AF. D. Procurement 30. The AF will be subject to the World Bank Procurement Regulations for IPF Borrowers (sixth edition February 2025), and all new procurement activities will use the last versions of the standard procurement documents for international bidding. Institutional arrangements for the AF will be the same of the Parent Project. UGPE will maintain a qualified Procurement team. A Project Procurement Strategy for Development (PPSD) and procurement plan for AF activities has been prepared and reviewed and cleared by the World Bank. 18 Cabo Verde’s NAP (July, 2021) https://unfccc.int/sites/default/files/resource/NAP_Cabo%20Verde_EN.pdf 19 Cabo Verde’s NDC (June, 2021), https://unfccc.int/documents/497420 Page 9 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) E. Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No F. Environmental & Social 31. The environmental risk rating for the AF is low as the proposed activities are intended to scale up on Parent Project activities and are not planning investments that have a physical footprint and could cause direct adverse environmental risks. The AF will focus on developing the single portal and will continue to finance digital reform to update For Official Use Only legal and other regulations, and TA, including capacity building, strengthening of digital capacity, improving connectivity, and financing of IT equipment and materials. It is extremely unlikely that any indirect, downstream environmental effects would be caused by the TA and advice provided through the project. The project will be of nationwide benefit and will not finance any infrastructure that could conceivably result in any adverse environmental impacts. 32. The social risk rating for this AF remains low given its focus on providing the Recipient with TA to improve its regulatory and digital skill capacity, including developing digital platforms. It is anticipated that, through the expansion of access to digital services and innovative digital ecosystems. Nonetheless, infrastructure barriers and gender-based stereotypes could hinder access to the project’s digital benefits for specific group, such as by preventing disabled people and adolescent girls and young women (AGYW) from accessing the WebLabs II. Specific vulnerable and/or disadvantaged individual/groups, such as the elderly, the unemployed, illiterate people, and populations living in remote and isolated areas, might also face challenges in accessing the project’s benefits, including in acces sing the digital services proposed. In addition, bringing access to the web into schools might expose students to unintended cyber risks, such as cyber predators and cyberbullying. As the AF will not invest in civil infrastructure, it will not lead to land acquisition resulting in physical and/or economical displacement and labor influx concerns. 33. The project’s sexual exploitation and abuse (SEA)/Sexual Harassment (SH) risk is still deemed low given the type of activities that will be implemented under the project, which will entail TA and minor works to establish fiber optic connection to schools. With regards to contextual gender-based violence (GBV)/SEA/SH risks, in Cabo Verde, intimate partner violence (IPV) and sexual violence are lower than the regional average. There is also a low prevalence of child marriage. At the institutional level, the GCV adopted different instruments to protect survivors and address GBV, including a national plan to combat GBV, and laws on domestic violence, sexual harassment and marital rape, and a national SEA/SH- sensitive grievance redress mechanism (GRM) to collect and manage SEA/SH cases. 34. The Environmental and Social Commitment Plan (ESCP), which has been updated for the AF, was disclosed on GCV website20 on April 30, 2025, and on World Bank webpage21 on May 01, 2025. 35. Citizen engagement. Citizen engagement is integrated into the AF through consultations, collaboration, and a project-level GRM at various stages. This approach enhances economic, social, and environmental outcomes while promoting sustainability through community ownership, transparency, and accountability. The Stakeholder Engagement 20 ESCP Digital Cabo Verde Project (P171099), UGPE. https://backend-ugpe.gov.cv/wp-content/uploads/2021/09/Environmental-and-Social-Commitment-Plan- negotiated.pdf 21 ESCP Digital Cabo Verde Project (P171099), World Bank. https://documents.worldbank.org/en/publication/documents- reports/documentdetail/099050125104534149 Page 10 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Plan (SEP), which has been updated for the AF, was disclosed on GCV website22 on April 30, 2025 and on World Bank webpage23 on May 01, 2025,.outlines measures to maintain strong stakeholder engagement. Additionally, a GBV-sensitive GRM has been established, reflected in the Results Framework and Project Operations Manual. There have been no complaints (unrelated or related) throughout the entire period of implementation of the Parent Project. Clarification and awareness-raising sessions on the GRM have been held involving the stakeholders mentioned in the SEP. 36. Gender. Cabo Verde has made notable strides in gender equality, particularly in education, digital inclusion, and workforce participation, reflecting a steady commitment to closing gender gaps. However, disparities persist in areas such as STEM career choices, labor market representation, and digital access in rural areas, highlighting the need for continued efforts to ensure full gender parity across all sectors. As such, the AF will continue to support gender-sensitive approaches to the implementation of activities to reduce gender gaps. Capacity building initiatives for ARME and NOSi will include female beneficiaries, empowering women to lead CV’s digital transformation projects and reforms. The AF will aim to scale up internet access and increasing bandwidth in schools and other government entities, targeting at least 50 percent female beneficiaries by 2028. With internet access for pedagogical purposes being enhanced in 150 schools by 2028, half For Official Use Only of the beneficiary students are expected to be females. Additionally, Subcomponent 2.1. will include a digital gender gap assessment in the districts where the schools with expanded connectivity are located to bridge location specific gender data gap and prioritize gender informed potential future activities. Furthermore, the Single Portal will offer gender-specific digital services and include capacity building for women to access and use these services. Digital inclusion will be strengthened by appointing digital ambassadors, with 50 percent being women, empowering them with roles to promote the use of digital services. Finally, the AF aims to improve the provision of digital public services and digital payments for public services by 2028, out of which 50 percent of users are expected to be women (Refer to Annex 1 for Gender Gap Assessment). 37. Climate Change. The AF activities will support Green, Resilient and Inclusive Development following climate adaptation and mitigation measures through the following activities in Subcomponent 1.1. and Component 3: (a) Single Portal: the GCV will integrate and streamline government digital services through a Single Portal, aiming the population accessing digital public services to increase from 40 percent to 63 percent. This will reduce the need for physical infrastructure, paperwork, and cash transactions while reducing the carbon footprint associated with traditional service delivery methods. By enabling online access to essential services, citizens are expected to travel less to government offices, reducing car traffic and CO2 emissions. Additionally, the portal under Component 3 will enhance climate resilience of the system and beneficiaries by providing a robust digital platform that ensures service and business continuity through improved and uninterrupted electronic service delivery (in contrast to manual system that requires physical trip to the public office) in the event of a climate-related calamity, as part of the effective disaster risk management. For example, the Tropical Storm Fred (2015), damaged physical infrastructures including power and road that hindered physical access to public services. This is a key activity that directly contributes to climate adaptation goals outlined in Cabo Verde's NDC 24 where by 2030 the country aims to ensure that essential public services remain accessible and reliable despite risks posed by climate challenges. (b) Infrastructure Sharing: AF will scale up support to development of digital legislation on infrastructure sharing for the telecom sector under Subcomponent 1.1, minimizing the duplication of civil works and infrastructure in alignment with the dig-once principle. This legislation on infrastructure sharing will lead to lower energy 22 SEP Digital Cabo Verde Project (P171099), UGPE. https://backend-ugpe.gov.cv/wp-content/uploads/2021/09/Stakeholder-Engagement-Plan.pdf 23 SEP Digital Cabo Verde Project (P171099), World Bank. https://documents.worldbank.org/en/publication/documents- reports/documentdetail/099050125103561998 24 Cabo Verde has developed national strategies that incorporate the digitalization of public services to enhance climate resilience. In its updated NDC, the country emphasizes the importance of resilient access to essential public services, by 2030. This initiative aims to bolster community resilience against climate-related challenges. In addition, the government has initiated the development of a GovTech innovation laboratory to co-create e-governance solutions. This initiative is part of the country's broader efforts to modernize public services and improve efficiency, which can contribute to strengthening climate resilience. Collectively, these strategies and initiatives reflect Cabo Verde's commitment to leveraging digitalization in public services to bolster climate resilience. Page 11 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) consumption, substantially reducing GHG emissions from construction and maintenance, and a decrease in land degradation. Additionally, it will optimize the use of materials, promoting a more sustainable and cost-effective digital infrastructure 25, making rural areas and other under connected parts of the archipelago financially viable for Internet Service Providers and thus help in the reduction of the digital gap. (c) Digital Public Infrastructure: strengthening the country’s DPI to enable and facilitate the delivery of end -to-end digital services, while integrating e-waste-friendly IT equipment to promote sustainability through recyclability, extended lifecycle management, and responsible disposal practices. (d) E-waste management: the AF will scale up support to GCV to finalize and implement the National Strategy for E- Waste Management. This strategy will cover electronic waste from public and private sectors as well as households, and will focus on repair, reuse, recycling and circular economy principles to reduce GHG emissions. (e) Energy-Efficient IT equipment under Component 3: To the extent technically and financially feasible, IT equipment procured/installed under Component 3 will be energy-efficient certified by Energy Star or equivalent standards which would surpass the energy efficiency levels of equipment existing in the country 26. This criterion will be specified in the tenders/procurement documents. For Official Use Only V. WORLD BANK GRIEVANCE REDRESS 38. Grievance Redress: Communities and individuals who believe that they are adversely affected by a project supported by the World Bank may submit complaints to existing project-level grievance mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank non- compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted to the AM at any time after concerns have been brought directly to the attention of Bank Management and after Management has been given an opportunity to respond. For information on how to submit complaints to the Bank ’s Grievance Redress Service (GRS), visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, visit https://accountability.worldbank.org. @#&OPS~Doctype~OPS^dynamics@afaprproposedchanges#doctemplate Summary changes VI. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Development Objective Yes Loan Closing Date Extension Yes Summary Description Yes Implementation Schedule Yes (Operation Abstract) Results Yes Loan Cancellations No 25 Evidence suggests that increase in number of operators per tower, for instance, leads to energy savings between 37-53 percent. Source: Helios Towers. 2021. Sustainable Business Impact Report. Infrastructure sharing can lead to large energy savings. The baseline carbon emissions for 4G sites using a wireless backhaul is estimated to be 5.2 kt for 30 gigabytes (GB) per month per user, but the amount can be reduced by 37 percent when using an active sharing approach. The downstream impact is bigger when opting for fiber rollout as opposed to microwave or other. Much of the cost of fiber rollout relates to trenching, which can be reduced if there are existing ducts or poles. Source: World Bank. 2023. Green digital Transformation. 26 There are currently no national energy efficiency performance standards or energy labeling systems for IT equipment in Cabo Verde. The National Labeling and Requirements System for Electrical Equipment (SNEREE) has set minimum energy efficiency standards and labeling requirements for various electrical appliances for refrigerators, air conditioners, televisions, lamps, electric water heaters, and washing machines. However, as of now, SNEREE does not include Information Technology (IT) equipment such as computers and related peripherals. Page 12 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Legal Covenants Yes Reallocations No Disbursements Estimates Yes Financial Management No Components Yes Procurement No Legal Operational Policies No Institutional Arrangement No MFD/PCE No Implementation Modalities No Conditions No Implementation Modalities No Disbursements Arrangements No Additional Regional No Institutions For Official Use Only Clients No Beneficiary Countries No @#&OPS~Doctype~OPS^dynamics@afaprdetailedchanges#doctemplate VII. DETAILED CHANGE(S) DEVELOPMENT OBJECTIVE (DO) Development Objective Development Objective (Approved as part of Approval Package on 12-Nov-2020) To strengthen Cabo Verde’s digital competitiveness foundations and improve the provision of digital public services Proposed New Development Objective To strengthen Cabo Verde’s digital competitiveness foundations and improve the provision and usage of digital public services Operation Abstract: Summary Description of Proposed Operation Operation Abstract (Approved as part of Approval Package on 12-Nov-2020) The proposed Digital Cabo Verde Project is articulated around five components that seek to (i) improve the enabling legal and regulatory environment for a vibrant, safe and inclusive digital economy; (ii) strengthen its competitiveness through better connectivity, skills and entrepreneurship; (iii) boost digital public services and marketplace; and (iv) provide support to the GoCV to respond to emergencies, including the COVID-19 crisis. Component 1: Enabling Legal and Regulatory Environment (US$3.1 million) Page 13 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) 22. This component will support the GoCV in improving the legal and regulatory environment for a digital economy. It will include technical assistance (TA) and capacity-building activities focused on telecommunications / broadband market regulations. More specifically, it will strengthen ARME’s capacity to manage and continuously monitor the quality of service for fixed broadband Internet and mobile networks, release frequencies for mobile broadband, and establish regulation sandboxes to foster innovation in applications enabled by emerging technologies. These measures become particularly important in the context of the COVID-19 pandemic, which puts a significant strain on broadband networks, and are expected to make GoCV better prepared to respond to similar external shocks in future. For Official Use Only 23. Subcomponent 1.1: Foundational and forward-looking ICT policies and regulations (US$0.8 million) will finance the following: (i) Regulatory impact analysis (RIA) of the effectiveness of regulatory tools and instruments, as a systemic approach to critically assess positive and negative effects of existing regulations and non-regulatory alternatives; (ii) TA to strengthen regulatory tools for ex-ante regulation on the wholesale and retail telecommunication markets (focused on the dominant position, asymmetric regulation for fixed and mobile broadband, cost models for fixed and mobile operators, margin squeezes, etc.); and (iii) TA to establish regulation sandboxes to pilot innovative applications based on new technologies. In the COVID-19 context, this TA will pay special attention to maximize the positive impact of digital technologies and will focus efforts on the reconfiguration and re- farming of spectrum access . 24. Subcomponent 1.2: Trustworthy digital pre-requisites: Cybersecurity and data protection (US$0.3 million) is aimed to support enabling policies and regulations as well as adequate enforcement procedures to enhance trust in data transactions in the country , proven critical during the COVID-19 crisis. More specifically, this subcomponent will finance a TA to support the implementation of the Cybersecurity Policy and Strategy (covering data privacy and protection, data flows, cybersecurity legal framework, regulations and enforcement, freedom of information, and intellectual property). 25. Subcomponent 1.3: Improved institutional structure and capacity (US$2 million) will support the GoCV’s efforts in reforming two key public stakeholders in the country – NOSi and CVT. More specifically, it will finance the following: (i) TA to conduct technical, legal and financial audits of NOSi’s legacy systems and infrastructure, financial asset valuation and the development of recommendations for effective management of the digital access network, with an overarching objective to operationalize NOSi 2.0 as a technology product manager, released from the ownership of Page 14 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) digital infrastructure assets and related responsibilities; (ii) TA to develop a new Human Capital Strategy and Management Model designed to support NOSi’s transformation into a more agile and competitive organization, fully equipped to monitor and interact with its employees, customers, suppliers and private sector partners in real time; and (iii) TA and consulting services to accompany the GoCV during the implementation of CVT’s repositioning, which has already been initiated, with a focus on exploring possible financing options and next steps. Component 2: Digital Competitiveness (US$ 7.6 million) 26. This component aims to better equip individuals and businesses across the country to be more competitive in For Official Use Only the digital economy’s job market and to spur innovation and productivity growth. To this end, this component supports the GoCV’s efforts to strengthen key enablers of a dynamic digital economy, with a focus on digital connectivity, skills and entrepreneurship. A range of activities in this component have been redesigned to help the GoCV effectively respond to the COVID-19 crisis by ensuring education continuity and facilitating distance learning under subcomponent 2.2. 27. Subcomponent 2.1: Digital connectivi ty for education (US$2.85 million). The ongoing reform of the MOE places a high priority on the use of technology to improve the effectiveness and efficiency of service delivery as well as enhance the quality of education. This becomes particularly critical as the education system is impacted by the closure of all education establishments during the COVID-19 pandemic, resulting in an overwhelming recognition of the need for effective distance learning empowered by digital technologies. It is expected that improved Internet access and increased bandwidth in schools will enable the access to and the use of online education platforms and learning materials – the only available channels of learning during the general lock-down. In this context, this subcomponent will finance: (i) TA to conduct a feasibility study and prepare bidding documents to purchase additional broadband capacity for primary and secondary schools as well as undertake an evaluation of Weblabs I; and (ii) Purchase of international bandwidth in the wholesale market that will be delivered by existing operators to schools. 28. Subcomponent 2.2: Digital skills (US$3.95 million), including support for COVID-19 response in education. With the aim of extending immediate support to the provision of distance learning in Cabo Verde following the COVID-19 crisis, this subcomponent includes financing for the following: (i) purchase of 700 tablets for new education staff; (ii) provision of Internet and mobile connectivity to education staff; (iii) production of video lessons for students. Beyond the immediate crisis response, this subcomponent focuses on the competitiveness of human capital in Cabo Verde, Page 15 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) prioritizing digital skills of its youth. More specifically, it will finance activities related to the expansion and scale-up of Weblabs I. These include: (i) the purchase of equipment, supplies, and operating costs for the implementation of WebLabs II; and (ii) TA provided by NOSI to support the MOE in developing a new ICT curriculum for grades 5-8 and training ICT teachers, upgrading their skills and enabling them to deliver courses offered by WebLabs. This activity will integrate a gender lens across the offered training programs. Given the existing gender gap in the WebLabs, the program will work to ensure the completion rate among girls of at least 50 percent. First, the program will work with teachers to directly encourage girls’ participation and will explore ways to disseminate information on the potential opportunities of computer science . Second, learning materials will be reviewed for potential gender biases and gender stereotypes. Third, the WebLabs will also explore ways to highlight and interact with local female role models in For Official Use Only technology . Modules on online safety, harmful digital content as well as appropriate online behavior for both young men and women will also be explored. 29. Subcomponent 2.3: Digital entrepreneurship ecosystem support (US$0.8 million). This subcomponent will help streamline all digital economy initiatives of the GoTG through an overarching digital economy strategy and will contribute to the implementation of the Digital Cabo Verde Program, supporting digital start-ups. To this end, it will include three core elements: (i) TA to support the development of the Digital Economy Strategy; (ii) TA to support the implementation of the Digital Cabo Verde Program; and (iii) TA to scale the Code for All program and support the development of entrepreneurship talent and digital skills at firms’ level. Component 3: Digital Public Services and Marketplace (US$ 8 million) 30. This component will support activities designed to boost the GoCV capacity to better deliver digital public services in G2G, G2B and G2P domains, particularly critical during the COVID-19. To that end, it will help transform and update existing government information systems for enhanced back office and service delivery, while enabling the scalability of selected cloud-based services and introducing new relevant business models in collaboration with the private sector. In the context of the COVID-19 crisis, some financing has been repurposed to support ComVida platform designed for the pandemic response. More specifically, component 3 will finance goods and services, particularly hardware equipment, traditional software and software as a service (including cloud services) as well as an accompanying TA and consulting services required for implementation. Page 16 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) 31. Digital public platforms (their upgrade or integration) to be considered for financing include: (i) Single External Trade System – JUCE, which will aim to integrate information databases of various external trade players; (ii) e- Embassy (or Digital Consulate), digitizing databases of all embassies and consulates and making their services available online, thus facilitating the lives of Cabo Verdeans abroad, and ComVIDA platform developed to monitor the impact of COVID-19 and provide information to the general public on available resources, government response program, and disease awareness; (iii) Cloud Blockchain Platform that involves updating various legacy systems of the public administration to blockchain technology; (iv) Integrated e-ID, based on the full consolidation of databases of the national system of identification and civil authentication (Sistema Nacional de Identificação e Autenticação Civil, SNIAC) , registries and voters; (v) Digital one-stop shop for investors and people looking to do business in Cabo Verde, For Official Use Only particularly aimed at attracting international investment from the diaspora; and (vi) Digital governance plan, aimed at supporting the implementation of various modernization actions by the public administration with priority given to digital public services, research and development, innovation and human resources empowerment. Component 4: Project Implementation Support (US$ 1.3 million) 32. This component will provide support for the management and implementation of project-associated activities. It will finance activities related to project management, including project coordination, procurement, financial management (FM), monitoring and evaluation, project communication, citizen engagement, and environmental and social safeguards. This component will also cover office equipment, incremental operating costs, and independent audits. Moreover, it will aim to finance additional staff required for overall project implementation, as well as staff specifically assigned to conduct fiduciary activities. This includes the recruitment of an individual digital economy project coordination advisor for the National Directorate of Telecommunications and Digital Economy (DGTED) under the Ministry of Finance (MOF), a project manager as well as safeguards, procurement and FM specialists assigned to the fiduciary PIU, also known as the Special Projects Management Unit (Unidade de Gestão de Projetos Especiais - UGPE). Special attention will be devoted to promoting women’s equal participation in all decision -making bodies under the project and contributing to tackling barriers in their recruitment, retention and promotion. Component 5: Contingent Emergency Response Component (US$ 0 million) 33. In the context of the COVID-19 crisis, a Contingent Emergency Response Component (CERC) is added to the project structure to allow for quick disbursement of uncommitted balances as a response measure to any crisis Page 17 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) (current or future). It will have an initial zero value but may be financed during the implementation of the project to allow for agile response to emerging events, with funds redirected from other components. Including CERC at the preparation stage, albeit with zero funding, provides for flexibility to respond to an imminent or actual emergency (such as COVID-19) The crisis response expenditures could cover, for instance, the facilitation of emergency payments to vulnerable groups of population using mobile money or ensuring the business continuity of core government functions, when civil servants are required to continue home-based work, or supporting MSMEs, particularly the most affected ones, to address their immediate liquidity challenges, reduce layoffs, and avoid bankruptcies. The CERC will not finance civil engineering works that can induce risks and/or negative environmental and social impacts. For Official Use Only Proposed Operation Abstract The proposed Additional Financing for the Digital Cabo Verde Project is articulated around the following three components: Component 1: Enabling Legal and Regulatory Environment (US$0.65 million equivalent). This component is being scaled up to expand the parent project activities with the objective of further strengthening the legal and regulatory environment to boost the development of the country’s digital economy. The AF will provide additional financing to enhance the legal framework for the government digital transformation and the implementation of emerging technologies benefiting agencies like ARME and MMEAP, as well as to continue with the strengthening of NOSi’s institutional capacity, all necessary for enabling the development of the Government Single Portal. The following activities will be scaled up under the following subcomponents: Subcomponent 1.1: Foundational and forward-looking ICT policies and regulations (US$0.5 million equivalent) i. Legal Framework Digital Transformation. The objective of scaling-up this activity is to further strengthen the legal framework for the government’s digital transformation. This activity will finance just in time legal assistance to support the development, update and implementation of the legal and regulatory framework needed for the continuous digital transformation of the government, focusing on areas like the regulation of the Administrative Modernization law. ii. Capacity Strengthening for ARME (Agência de Regulação Multissectorial da Economia/Multisectoral Regulatory Agency). The objective of this activity is scale up support towards ARME’s capacity to design and implement legal and regulatory frameworks. Building on the activities of the Parent Project, the AF will expand the technical assistance and Page 18 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) training in priority areas such as digital transactions and on the telecommunications side, the AF will scale up support to developing legal framework and implementation of infrastructure sharing. This work was initiated under the parent project through market analysis . iii. Strategic and legal framework for emerging technologies. The objective of this activity is to support the formulation, adoption, and implementation of a robust strategic and legal framework for emerging technologies. This activity will finance support for the design and implementation of a strategy for Artificial Intelligence (AI) and other emerging technologies and its implementation to improve government efficiency and services (i.e., proactive services). Subcomponent 1.3: Improved institutional structure and capacity (US$0.15 equivalent). Capacity Strengthening for For Official Use Only NOSi. The objective of this activity is to scale up support to NOSi’s key role in the implementation of digital transformation projects across the government. This activity will continue financing NOSi’s support for the implementation of digital transformation projects in the GCV. Component 2: Digital Competitiveness (US$2.5 million equivalent). This component is being scaled up to expand the activities to support the Government’s efforts to strengthen key enablers of a dynamic digital economy with a focus on connectivity. Subcomponent 2.1: Digital connectivity for education. Expanded Digital Connectivity. The objective of this activity is to provide additional financing for the improvement of internet access and increase bandwidth in schools and other government entities to enable the access to and the use of online education platforms and digital public services. This activity will expand the connectivity provided (currently to high schools only) under the Parent Project, and specifically it will finance: (i) technical assistance to conduct a feasibility study, including a digital vulnerable groups gap assessment, including women, in the districts where the schools with expanded connectivity are located , and prepare bidding documents to purchase additional broadband capacity for new schools and other government entities; and (ii) to purchase of international bandwidth in the market that will be delivered by existing operators to additional schools and government entities. Component 3: Digital Public Services and Marketplace (US$16 million equivalent). This component is being scaled up to support the Government’s major objective of digitizing 60 percent of all government services by 2026, as well as centralizing the delivery of services through a single government portal for digital public services, building on the achievements of the Parent Project through the Consular Portal. Page 19 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) a. Strengthening of Digital Public Infrastructure (DPI) (US$2 million equivalent). The objective of this activity is to provide additional financing to strengthening the country’s DPI to enable and facilitate the delivery of additional end - to-end digital services. This activity will finance: (i) strengthening Cabo Verde’s existing Interoperability framework and government digital business architecture (PDEX ); (ii) enhancing the current digital identity and authentication frameworks (Chave Movel Digital ); (iii) expanding the present government cloud ; and (iv) implementing a robust digital payment’s platform, including digitalization and strengthening of the treasury. b. Digitalization of Public Services and Single Government Portal (US$14 million equivalent). The objective of this For Official Use Only activity is to finalize establishment of the portal and scale up the digitalization of services. Activity will increase the government efforts to digitalize more public services and facilitate the access to them by citizens and businesses through a single window . This activity will finance: (i) strengthening of the Digital Services Team, in charge of implementing the Single Government Portal; (ii) the development of guidelines and directives for the homogenization of digital architecture across the government; (iii) digitalization of public records; (iv) business processes reengineering, enhancement of user experience (UX) and digitalization of the prioritized government services on the digital services team action plan; (v) development of the Single Government Portal; (vi) implementation of communications and change management activities for government employees, citizens and businesses focused on digital transformation and the use of digital services; (vii) strengthening of digital inclusion through the implementation of initiatives like a digital ambassadors program to support businesses and citizens in the adoption and use of digital services, and the development of multilingual content; and (viii) design and implementation of data analytics, including gender- disaggregated data, and digital services user’s satisfaction evaluations for the continuous improvement of the service delivery and user experience. This activity will also include the digitalization of prioritized back-office processes and systems , including: i. Integrated Human Resources Management Information System (HRMIS). The objective of this activity is to support the government in the development and implementation of an integrated Human Resources Management System that can effectively interoperate with other government systems and efficiently perform all HR functions. This activity will finance: (i) the consolidation and improvement of the civil servants’ database, eliminating potential inconsistencies on the MMEAP (Ministério da Modernização do Estado e da Administração Pública/Ministry of State Modernization and Public Administration) database; (ii) the digitalization of HR records; (iii) equipment for government entities to support the rollout of the HMIS; (iii) design and roll out of the HMIS; and (iv) communications and change management activities to support the implementation and use of the system by public sector employees. Page 20 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) ii. Tax Administration System. The objective of this activity is to continue supporting the digital transformation of one of Cabo Verde’s economy key agencies, the DNRE (Direção Nacional das Receitas de Estado/National Directorate of State Revenue). This activity will finance: (i) the strengthening of key enablers for the digital transformation of the agency; (ii) the automatization of processes and interoperability with commercial Banks; (iii) the automatization of tax reimbursement; and (iv) the design and implementation of the automatic filling of tax returns. COMPONENTS Last Approved Proposed Component Name Cost (USD) Action Component Name Cost (USD) For Official Use Only Component 1: Enabling Component 1: Enabling Legal Legal and Regulatory 2,200,000.00 No Change 2,850,000.00 and Regulatory Environment Environment Component 2: Digital Component 2: Digital 7,500,000.00 No Change 10,000,000.00 Competitiveness Competitiveness Component 3: Digital Public Component 3: Digital Public 9,000,000.00 No Change 25,000,000.00 Services and Marketplace Services and Marketplace Component 4: Project Component 4: Project 1,300,000.00 No Change 2,150,000.00 Implementation Support Implementation Support Component 5: Contingent Component 5: Contingent Emergency Response 0.00 No Change Emergency Response 0.00 Component Component TOTAL 20,000,000.00 40,000,000.00 COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Loan Closing Page 21 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications IDA-67920-001 Effective 31-Oct-2025 31-Oct-2025 31-Oct-2028 28-Feb-2029 DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Implementation Start Date Operation Closing Date 12-Nov-2020 31-Oct-2025 For Official Use Only Projected Date for Full Disbursement 22-Aug-2025 Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 12 Nov 2020) FY2021 710,833.90 0.00 2,134,893.57 FY2022 2,320,346.61 0.00 916,769.56 FY2023 3,108,734.19 0.00 4,543,794.76 FY2024 3,480,877.41 0.00 2,560,534.78 FY2025 3,672,054.14 0.00 5,799,324.37 FY2026 651,736.80 0.00 0.00 ENVIRONMENTAL & SOCIAL Overview Operation Location Operation location and salient physical characteristics relevant to the ESS Assessment (geographic, environmental, social) (if known) Cabo Verde is an archipelago located approximately 500 km west of Senegal in West Africa, consisting of 10 islands, nine of which are inhabited, along with several uninhabited islets. In 2023, the country’s population was estimated at 522,330, growing at an average annual rate of 1.5 percent. Given its unique natural landscape and cultural heritage, tourism serves as a key link between the archipelago and the global economy, further emphasizing the need for digital transformation. Expanding digital infrastructure and services is essential to unlocking economic opportunities, particularly in smart tourism, while also enhancing key sectors such as e-governance, education, and healthcare. Strengthening digital capabilities will position Cabo Verde as a resilient and competitive island economy in the digital Page 22 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) era. The Government of Cabo Verde (GoCV) has been actively advancing its Information and Communication Technology (ICT) initiatives to support this transformation. Detailed operation location(s) and salient physical characteristics relevant to the ESS Assessment (geographic, environmental, social) Cabo Verde Islands are located about 500 km west of Senegal in West Africa. The archipelago consists of 10 islands (nine of which inhabited) and several uninhabited islets. Estimated at 522,33 people in 2023, Cabo Verde’s population is growing at an average annual rate of 1.5 percent. Combined with its natural landscape, and cultural conditions that through tourism connects the archipelago to the outside world, underscores the increasing importance of digital transformation. Expanding digital infrastructure and services is crucial for enhancing economic opportunities, including smart-tourism. Additionally, digitalization plays a key role in strengthening sectors such as e-governance, education, and healthcare, positioning Cabo Verde as a competitive and resilient island economy in the digital age. The GoCV has been steadily developing its Information and Communication Technology (ICT) [Description of key features relevant to the operation’s environmental and social risks and opportunities (e.g., whether the project is nationwide or regional in scope, urban/rural, in an FCV context, presence of Indigenous Peoples or other minorities, involves associated facilities, For Official Use Only high-biodiversity settings, etc.) – Max. character limit 10,000] Cabo Verde Islands are located about 500 km west of Senegal in West Africa. The archipelago consists of 10 islands (nine of which inhabited) and several uninhabited islets. Estimated at 522,33 people in 2023, Cabo Verde’s population is growing at an average annual rate of 1.5 percent. Combined with its natural landscape, and cultural conditions that through tourism connects the archipelago to the outside world, underscores the increasing importance of digital transformation. Expanding digital infrastructure and services is crucial for enhancing economic opportunities, including smart-tourism. Additionally, digitalization plays a key role in strengthening sectors such as e-governance, education, and healthcare, positioning Cabo Verde as a competitive and resilient island economy in the digital age. The GoCV has been steadily developing its Information and Communication Technology (ICT) sector, aiming to accelerate economic growth, expand job opportunities and improve service delivery and quality. As of January 2023, approximately 69.8% of the population were internet users. However, disparities persist, particularly affecting vulnerable groups in remote areas and schools. While many Cabo Verdeans have access to e-learning tools such as televisions, radios, mobile phones, and computers, rural and economically disadvantaged households face significant challenges. A survey revealed that these groups are at a substantial disadvantage regarding device ownership and internet access, limiting their participation in digital learning opportunities. Globally, men are 21% more likely to be online than women, a figure that rises to 52% in low-income countries. Girls often participate at lower rates in digital skills programs and other science, technology, engineering, and mathematics (STEM)-related initiatives due to systemic and complex barriers such as gender stereotypes that tend to communicate and reinforce the notion that men and boys are better suited for these subjects and related careers. While specific data for Cabo Verde is limited, these global trends indicate potential gender disparities in digital access. In Cabo Verde, efforts are underway to address this gap. For instance, initiatives focusing on empowering women and girls through digital skills are being implemented to promote gender equality in the digital space.The project is being implemented at the national level to support the GoCV’s strategy to accelerate the digital transformation of the country, raising its competitiveness as a digitally-enabled, service-led economy, and attracting further private investment by focusing on three of the four key enablers (or foundations) articulated in the Plano Estratégico de Desenvolvimento Sustentável (PEDS): Digital Skills; Collaboration; Regulation and Legislation; and Digital Platforms. Borrower’s Institutional Capacity The Ministry of Finance (MoF) will be the Agency responsible for leading the overall implementation of this project, through specifically the Department of Telecommunications and Digital Economy (DGTED), under the Secretary of State for Innovation and Professional Training. Within the MOF, a fiduciary Project Implementation Unit (PIU), also known as the Management Unit for Special Projects (Unidade de Gestão de Projetos Especiais, UGPE), has fiduciary responsibility and is responsible for E&S management. The environmental and social (E&S) performance of the current projects under UGPE implementation have consistently been rated Satisfactory or Moderately Satisfactory. There are two full-time Page 23 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) dedicated environmental specialists with adequate qualifications and prior experience in environmental management and one full-time Social Development Specialist that has relevant social and gender qualifications and experience. Two full-time specialists within the UGPE, one environmental and one social, are assigned to the AF, while also currently supporting the parent project. In 2024, the Bank carried out a overview assessment of Cape Verde's environmental and social framework, focusing on the strength of legislation and institutional capacity. This OA resulted in a report with specific recommendations to be applied on new bank investments in Cabo Verde. Regarding the institutional capacity related to this Additional Financing, the main take aways of the report are: The following agencies play a key role in the application of labor legislation and are all under the authority of the Ministry of Family, Inclusion and Social Development (MFIDS). General Directorate of Labor (DGT) mandate includes formulating, proposing, coordinating, promoting and ensuring the implementation of policies on labor relations and working conditions. A substantial part of the DGT's activity is the mediation of labor disputes. General Labor Inspectorate (IGT) mandate includes supervising and ensuring compliance with the Labor Code and its regulations. It is also responsible for conducting investigations into work accidents. Cabo Verdian Institute for Gender Equality and Equity (ICIEG )is the main government agency responsible for promoting gender legislation and policies. ICIEG was created in 1994 and has 12 employees in Praia and For Official Use Only a focal point in each of the 22 municipalities. Since 2022, the UGPE and ICIEG signed a Memorandum of Understanding that defines the procedure for handling SEA/SH/GBV cases arising during the implementation of projects financed by the World Bank. Under this Memorandum, IGIEG carries out the following activities: (i) studies and strategic guidelines for the integration of gender equality and equity; (ii) provision of GBV services; (iii) implementation of active measures for the empowerment of women; and (iv) awareness-raising on measures to prevent and respond to GBV/SEA/SH and evaluation of the impact of the actions carried out. Assessment Environmental & Social Risk Classification Environmental Risk Rating Social Risk Rating Low Low Original Environmental and Social Risk Rating (ESRC) Revised Environmental and Social Risk Rating (ESRC) Low Low Environmental & Social Standards E & S Standards Relevance ESS 1: Assessment and Management of Environmental and Social Risks and Relevant Impacts ESS 10: Stakeholder Engagement and Information Disclosure Relevant ESS 2: Labor and Working Conditions Relevant ESS 3: Resource Efficiency and Pollution Prevention and Management Relevant ESS 4: Community Health and Safety Relevant ESS 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant ESS 6: Biodiversity Conservation and Sustainable Management of Living Natural Not Currently Relevant Resources Page 24 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) ESS 7: Indigenous Peoples/Sub-Saharan African Historically Underserved Not Currently Relevant Traditional Local Communities ESS 8: Cultural Heritage Not Currently Relevant ESS 9: Financial Intermediaries Not Currently Relevant Summary of Assessment of Environmental and Social Risks and Impacts The environmental and social risk classification for the AF is considered Low. The AF will not finance any activities that are likely to generate any environmental or social risks or could generate significant and irreversible environmental or social impacts. Three ESSs are considered relevant for the project: ESS1 mainly related to the social risks, as vulnerable groups may face barriers in accessing project's benefits, especially digital services s; ESS2 related to potential risks related to labor conditions (working hours, wages); ESS10 due to potential neglect of vulnerable groups like women, people with disabilities, or people in remote areas. ESS3, ESS4, ESS5, ESS6, ESS7, ESS8 and ESS9 have For Official Use Only been assessed as currently not relevant. The World Bank’s assessment of the Cabo Verde’s Borrower Framework found that the national framework realted to Labor (ESS2), Cultural Heritage (ESS8) and SEA/SH are materially consistent with the Bank’s Environmental and Social Framework (ESF) and Good Industry Practices (GIIP) and should be used for all World Bank financed projects across all risk ratings. Further, the assessment recommends that the national framework regarding environmental and social assessment (ESS1) should be used for all projects rated Low and Moderate E&S risks by the World Bank. For these ESSs, no additional instruments will be required to manage the risks associated with these categories but compliance will be monitored as part of regular implementation. For this AF, the national framework will be used to screen for and manage E&S risks and impacts. The Bank team will work with UGPE to ensure that they adequately monitor compliance during project implementation. Last Finalized Date Is a common approach being considered? 02-Apr-2025 No Legal Covenants Loan/Credit/TF Description Status Action The Recipient shall, no later than one (1) month after the Effective Date, or such later date as agreed by the Association, recruit a Project manager with qualifications, experience and terms of reference, IDA-67920 satisfactory to the Association, responsible Complied with No Change for: (a) supervision of Project implementation; and (b) coordination between DGTED, UGPE and other stakeholders involved in Project implementation. The Recipient shall, no later than three (3) months after the Effective Date, or such later After delay IDA-67920 date as agreed by the Association: (a) No Change complied with customize the Project’s accounting software, in form and substance satisfactory to the Page 25 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) Association; (b) recruit an internal auditor with qualifications, experience and terms of reference, satisfactory to the Association; and (c) recruit an accountant assistant with qualifications, experience and terms of reference, satisfactory to the Association. The Recipient shall, no later than six (6) months after the Effective Date, or such later date as agreed by the Association, recruit an After delay IDA-67920 No Change external auditor with qualifications, complied with experience and terms of reference, satisfactory to the Association. For Official Use Only To facilitate the carrying out of Part 3 of the Project, the Recipient, through UGPE, shall update, not later than one (1) month from Effective Date, the Memorandum of Understanding with NOSi (the “NOSi Memorandum of Understanding”), and thereafter maintain said NOSi Memorandum of Understanding during the implementation of the Project, on terms and conditions acceptable to the Association, including, inter alia: NOSi’s obligation to assist the Recipient in the carrying out of Part 3 of the Project in accordance with the Anti-Corruption IDA-67920 Guidelines, the Procurement Regulations, the Not yet due No Change Environmental and Social Standards and the Project Implementation Manual. The Recipient shall exercise its rights or carry out its obligations under the NOSi Memorandum of Understanding in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate, waive, terminate or fail to enforce the NOSi Memorandum of Understanding, or any of its provisions. (SCHEDULE 2 Section I. E) Page 26 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) RESULTS FRAMEWORK @#&OPS~Doctype~OPS^dynamics@afaprresultframework#doctemplate Project Development Objective(s) To strengthen Cabo Verde’s digital competitiveness foundations and improve the provision and usage of digital public services PDO Indicators by PDO Outcomes Baseline Period 1 Period 2 Period 3 Completion Period Mobile broadband (3G and above) penetration rates (unique mobile-broadband subscriptions per 100 inhabitants) (Percentage) For Official Use Only Jun/2020 Oct/2025 70.10 80.00 ➢ of which % female users (Percentage) 0.00 50.00 NewPeople using digitally enabled services (new services) (Number of people) CRI Dec/2025 Dec/2026 Dec/2027 0 35,790 75,790 ➢ NewPeople using digitally enabled services (new services) - Female (Number of people) CRI May/2025 Oct/2028 0 60,300 ➢ NewPeople using digitally enabled services (new services) - Youth (Number of people) CRI May/2025 Oct/2028 0 50,000 NewPeople using digitally enabled services (enhanced services) (Number of people) CRI Dec/2025 Dec/2026 Dec/2027 0 80,000 150,000 ➢ NewPeople using digitally enabled services (enhanced services) - Female (Number of people) CRI May/2025 Dec/2025 Dec/2026 Dec/2027 Oct/2028 0 0 40,000 70,000 109,700 ➢ NewPeople using digitally enabled services (enhanced services) - Youth (Number of people) CRI Page 27 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) May/2025 Oct/2028 0 90,646 NewPeople using broadband internet (new use) (Number of people) CRI May/2025 Oct/2028 0 50,000 ➢ NewPeople using broadband internet (new use) - Female (Number of people) CRI May/2025 Oct/2028 0 26,000 ➢ NewPeople using broadband internet (new use) - Youth (Number of people) CRI May/2025 Dec/2025 Dec/2026 Dec/2027 Oct/2028 0 5,000 10,000 15,000 20,000 Number of additional in and out-of-school youth receiving certificates in intermediate and advanced digital skills (Number) For Official Use Only Dec/2021 Dec/2024 Oct/2025 0.00 20,000.00 25,000.00 ➢ of which % female (Percentage) 0.00 20.00 30.00 NewPeople using payment services (Number of people) CRI Dec/2025 Dec/2026 Dec/2027 110,000 130,000 150,000 ➢ NewPeople using digital payments for service delivery (Number of people) ➢ NewPeople using payment services - Female (Number of people) CRI Dec/2024 Oct/2028 53,248 85,000 ➢ NewPeople using digital payments for service delivery - Female (Number of people) Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 53,248 55,000 65,000 75,000 85,000 Number of digital solution firms (Number) Jul/2020 Dec/2021 Dec/2022 Oct/2025 0.00 2.00 4.00 15.00 ➢ of which % women-owned/led (Percentage) Page 28 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) 0.00 0.00 20.00 50.00 Intermediate Results Indicators by Components Baseline Period 1 Period 2 Period 3 Completion Period NewSingle Portal established and operational (Yes/No) ReviseReforms adopted (Number) Dec/2021 Dec/2023 Oct/2028 For Official Use Only 0.00 1.00 2.00 Cybersecurity Policy and Strategy adopted (Yes/No) Mar/2020 Dec/2021 Dec/2022 Oct/2025 No No Yes Yes NewDigital Ambassadors appointed (Number) ➢ NewFemale Digital Ambassadors appointed (Percentage) NewFixed-broadband Internet basket (as a % of GNI per capita) (Percentage) Dec/2024 Oct/2028 2.46 1.80 Strategic Realignment of NOSI completed (Yes/No) Apr/2020 No NewPublic services available on the Single Portal (Percentage) May/2025 Dec/2025 Dec/2026 Dec/2027 Oct/2028 Page 29 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) 0 0 60 70 80 ReviseFacilities connected to broadband internet (Number) Mar/2020 Dec/2024 Dec/2025 Dec/2026 0.00 93.00 93.00 110.00 ➢ NewBasic and secondary schools connected to broadband internet for pedagogical purposes (Number) Mar/2020 Dec/2025 Dec/2026 Dec/2027 Oct/2028 0.00 93.00 110 130 150 ReviseStudies to Support the Digital Economy Completed (Number) Jun/2020 Dec/2024 Dec/2027 Oct/2028 0.00 1.00 4.00 5.00 For Official Use Only Number of entrepreneurs benefited by the mentorship program (Number) Jun/2022 0.00 Digital Government Services Platforms upgraded (Number) Dec/2022 Dec/2023 Dec/2024 Oct/2025 3.00 4.00 5.00 6.00 ReviseGrievances addressed within the stipulated service standards (Percentage) Jul/2020 Dec/2021 Dec/2023 Oct/2025 0.00 70.00 90.00 90.00 Page 30 The World Bank Additional Financing to the Digital Cabo Verde Project(P171099) Monitoring & Evaluation Plan: PDO Indicators by PDO Outcomes PDO Outcome Strengthen digital competitiveness foundations Indicator Name NewPeople using broadband internet (new use) (Number of people) CRI Measurement of the "Increase Digital Competitiveness" portion of the PDO. This indicator will measure the project's contribution to increasing Cabo Description Verde's digital competitiveness through the new number of People Using Broadband Internet (Number of People) World Bank CRI Indicator. Baseline and target of this indicator were confirmed during the AF appraisal mission. Frequency Annual Data source INE, REPORT “ESTATÍSTICAS DAS TECNOLOGIAS DE INFORMAÇÃO E COMUNICAÇÃO” Methodology for Data UGPE will collect this information from INE’s yearly report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name → NewPeople using broadband internet (new use) - Female (Number of people) CRI Supplemental Indicator. Baseline data will be assessed by INE and updated during project implementation. The gender gap assessment under Description Subcomponent 2.1: Digital connectivity for education will also provide additional information for this supplemental indicator. Frequency Annual Data source INE Methodology for Data UGPE will collect this information from INE to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name → NewPeople using broadband internet (new use) - Youth (Number of people) CRI Description Supplemental Indicator. Baseline data will be assessed by INE and updated during project implementation. Frequency Annual Data source INE Methodology for Data UGPE will collect this information from INE to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection PDO Outcome Improve the provision of digital public services: Page 31 The World Bank Additional Financing to the Digital Cabo Verde Project(P171099) Indicator Name NewPeople using digitally enabled services (new services) (Number of people) CRI Measurement of the "Improve provision and usage of public digital services" portion of the PDO. Estimated total number of new people using digitally Description enabled services (World Bank CRI Indicator). Baseline and targets developed in conjunction with Single Portal Digital Services Team. Frequency Twice per year Data source Single Portal Digital Services Team Report Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name → NewPeople using digitally enabled services (new services) - Female (Number of people) CRI Description Supplemental Indicator. Baseline data will be assessed by Single Portal Digital Services Team and updated during project implementation. Frequency Twice per year Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name → NewPeople using digitally enabled services (new services) - Youth (Number of people) CRI Description Supplemental Indicator. Baseline data will be assessed by Single Portal Digital Services Team and updated during project implementation. Frequency Twice per year Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name NewPeople using digitally enabled services (enhanced services) (Number of people) CRI Measurement of the "Improve provision and usage of public digital services" portion of the PDO. Estimated total number of people using enhanced Description digitally enabled services (World Bank CRI Indicator). Baseline and targets developed in conjunction with Single Portal Digital Services Team. Frequency Twice per year Data source Single Portal Digital Services Team Report Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name →NewPeople using digitally enabled services (enhanced services) - Female (Number of people) CRI Page 32 The World Bank Additional Financing to the Digital Cabo Verde Project(P171099) Description Supplemental Indicator. Baseline data will be assessed by Single Portal Digital Services Team and updated during project implementation. Frequency Twice per year Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name →NewPeople using digitally enabled services (enhanced services) - Youth (Number of people) CRI Description Supplemental Indicator. Baseline data will be assessed by Single Portal Digital Services Team and updated during project implementation. Frequency Twice per year Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name NewPeople using payment services (Number of people) CRI Measurement of the "Improve provision and usage of public digital services" portion of the PDO. Estimated total number of people and businesses using Description payment services (World Bank CRI Indicator). Baseline and targets developed in conjunction with Single Portal Digital Services Team. Frequency Twice per year Data source Single Portal Digital Services Team Report Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name → NewPeople using payment services - Female (Number of people) CRI Description Supplemental Indicator. Baseline data was assessed by Single Portal Digital Services Team and will be updated during project implementation. Frequency Twice per year Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name →NewPeople using digital payments for service delivery (Number of people) Supplemental Indicator. Total number of people using digital payments for service delivery (World Bank CRI Indicator). Baseline and targets developed in Description conjunction with Single Portal Digital Services Team. Page 33 The World Bank Additional Financing to the Digital Cabo Verde Project(P171099) Frequency Twice per year Data source Single Portal Digital Services Team Report Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name →NewPeople using digital payments for service delivery - Female (Number of people) Description Supplemental Indicator. Baseline data was assessed by Single Portal Digital Services Team and will be updated during project implementation. Frequency Twice per year Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Monitoring & Evaluation Plan: Intermediate Results Indicators by Components Results Area Component 1: Enabling Legal and Regulatory Environment Indicator Name RevisedReforms adopted (Number) Progress Measurement of the development of guidelines, policies and/or regulations to be financed under Subcomponent 1.1 (Foundational and Description forwardlooking ICT policies and regulations) that apply harmonized climate resilience standards. Namely legal and regulatory framework needed for the continuous digital transformation of the government taking into consideration harmonized climate resilience standards. Frequency Annual Data source Reports from ARME. Methodology for Data UGPE will collect this information from ARME to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name NewFixed-broadband Internet basket (as a % of GNI per capita) (Percentage) Entry-level fixed-broadband basket. Combined time series data, the basket is composed of the cheapest plan providing at least 5GB of monthly high-speed Description data (256Kbit/s or higher) from the operator with the largest market share in each economy. Frequency Annual Data source ITU Data Hub https://datahub.itu.int/ Page 34 The World Bank Additional Financing to the Digital Cabo Verde Project(P171099) Methodology for Data UGPE will collect this information from the ITU Data Hub to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Results Area Component 2: Digital Competitiveness Indicator Name ReviseFacilities connected to broadband internet (Number) Progress measurement of improved provision of internet connection to schools and other facilities, resulting from the supply of increased broadband Description capacity financed under Subcomponent 2.1 (Digital connectivity for education). Frequency Annual Data source Reports from NOSi in collaboration with MOE. Methodology for Data UGPE will collect the information provided by NOSi in collaboration with MOE to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name → NewBasic and secondary schools connected to broadband internet for pedagogical purposes (Number) Supplemental Indicator. Progress measurement of improved provision of internet connection to basic and secondary schools, resulting from the supply of Description increased broadband capacity financed under Subcomponent 2.1 (Digital connectivity for education). Frequency Annual Data source Reports from NOSi in collaboration with MOE. Methodology for Data UGPE will collect the information provided by NOSi in collaboration with MOE to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name ReviseStudies to Support the Digital Economy Completed (Number) Progress Measurement of the development of guidelines, policies and/or regulations to be financed under Subcomponent 1.1 (Foundational and Description forwardlooking ICT policies and regulations). Namely the design and implementation of a strategy for AI and other emerging technologies. Frequency Annual Data source Reports from ARME. Methodology for Data UGPE will collect this information from ARME to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Results Area Component 3: Digital Public Services and Marketplace Indicator Name NewSingle Portal established and operational (Yes/No) Page 35 The World Bank Additional Financing to the Digital Cabo Verde Project(P171099) Description The project will support the design, development and implementatio of a Single Portal for the GCV. Frequency Annual Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name NewPublic services available on the Single Portal (Percentage) Progress implementation measurement of activities financed under Component 3 (Digital Public Services and Marketplace), which aim at improving the Description delivery of government digital public services. Frequency Annual Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name NewDigitalambassadors appointed (Number) Description Number of people enrolled in Digital Ambassadors program under the project. Frequency Annual Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Indicator Name → NewFemale digital ambassadors appointed (Percentage) Description Supplemental Indicator. Baseline data was assessed by Single Portal Digital Services Team and will be updated during project implementation. Frequency Annual Data source Single Portal Digital Services Team Methodology for Data UGPE will collect this information from Single Portal Digital Services Team Report to feed the project progress report and results framework. Collection Responsibility for Data UGPE Collection Results Area Component 4: Project Implementation Support Indicator Name Grievances addressed within the stipulated service standards (Percentage) Description A GRM for receiving and resolving complaints will be established and centralized within UGPE. As indicator of transparency and citizen engagement, the Page 36 The World Bank Additional Financing to the Digital Cabo Verde Project(P171099) UGPE will commit to resAolve at least 90 percent of the complaints received every year. Frequency Semiannual Data source GRM database system from UGPE. UGPE in collaboration with the DGTED will be responsible for assessing the complaints and preparing the appropriate responses to address the identified Methodology for Data grievance. The number of received complaints will be the baseline/denominator to calculate the resolved percentage. Details on the mechanism will be Collection detailed in the PIM. Responsibility for Data UGPE Collection Page 37 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) ANNEX 1. Addressing Gender Gaps in Digital Cabo Verde AF 1. In 2023, women made up nearly half of Cabo Verde’s total population, accounting for 49.1 percent27. In the labor market, women constituted 43.2 percent of Cabo Verde’s total workforce in 2023 28. While progress continues, efforts remain necessary to achieve full gender parity across various sectors. According to the Global Gender Gap Report 202429, Cabo Verde ranked 41st out of 146 countries, with a score of 0.75—placing it above the Sub-Saharan Africa average. Over the years, the country has demonstrated a steady upward trend in gender parity and has made significant progress in bridging the digital gender divide. Notably, in 2024, Cabo Verde achieved one of the highest Digital Gender Gap30 scores in Africa (0.98 out of 1). Digital connectivity has also seen substantial growth. In 2023, 73.5 percent of the population had used the internet, compared to 61 percent of women in 201931. However, there is yet a digital gender gap in Internet use in rural areas. 2. In education, the 2022/2023 academic year reflected a strong female presence in secondary education, where 68.2 percent of students were girls, compared to 49.1 percent boys 32. However, gender disparities persist in STEM career choices, with fewer women pursuing these fields. In 2018, 44 percent of ICT tertiary education graduates were female33. To address these gaps, initiatives in the original financing such as the WebLabs Program have been implemented, equipping secondary schools with ICT labs to enhance digital skills among youth, particularly girls. Additionally, under the Project, 41 percent of the additional in-school and out-of-school youth receiving certificates in intermediate and advanced digital skills were female—amounting to over 4,300 participants. BARRIERS/GENDER GAPS IDENTIFIED STRATEGIC ACTIONS AND PROJECT RELEVANT DESIGN DECISIONS INDICATORS Component 1. Enabling Legal and Regulatory Environment Subomponent 1.1. Foundational and Forward-Looking ICT Policies and Regulations Cabo Verde adopted the 2023-2025 -Capacity building for ARME will include N/A Digital Governance Strategy, which aims female staff beneficiaries, which will to promote an inclusive and equitable empower women participation in shaping digital transformation for all citizens. legal and regulatory frameworks needed for Nonetheless, this strategy for digital digital transformation. governance does not explicitly provide -TA for ARME to enable the collection of new avenues for the empowerment of data telecom operators pertaining to women and girls in the digital sector. women broadband subscription levels and Notwithstanding the fact that the gender internet usage. divide in internet access and use is negligent, women lag behind men in access and use of the internet in rural areas. In fact, 68.4 percent of men are using the Internet, in rural areas, compared with 65.5 percent of women. 34 The digital gender gap in Internet use in rural areas can, in part, be attributed to a 27 World Bank staff estimates based on age/sex distributions of United Nations Population Division's World Population Prospects: 2024 Revision. 28 World Bank, World Development Indicators database. Estimates are based on data obtained from International Labour Organization and United Nations Population Division. 29 https://www.weforum.org/publications/global-gender-gap-report-2024/global-gender-gap-2024-dashboard/ 30 https://www.digitalgendergaps.org/ 31 ITU DataHub https://datahub.itu.int/data/?i=11624&e=CPV 32 www.undp.org/acceleratorlabs/blog/inspiration-and-empowerment-future-generations-women-stem-cabo-verde 33 UNESCO Institute for Statistics (http://uis.unesco.org/). Data as of March 2020. 34 https://unesdoc.unesco.org/ark:/48223/pf0000390355 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) BARRIERS/GENDER GAPS IDENTIFIED STRATEGIC ACTIONS AND PROJECT RELEVANT DESIGN DECISIONS INDICATORS lack of gender-responsive strategies and policies in the digital sector. Subcomponent 1.3. Improved Institutional Structure and Capacity Cabo Verde has adopted a Gender Parity -Capacity Building for NOSi to advance in N/A Law for public organizations. This law is digital transformation projects in the GCV already enacted and is slowly increasing will include female staff beneficiaries. women’s participation in public service. However, women continue to be underrepresented in technology- oriented jobs. Component 2. Digital Competitiveness Subcomponent 2.1: Digital connectivity for education Over the past years, Cabo Verde has -Improving internet access and increasing → People using shown a general upward trend in gender bandwidth in schools and other government broadband internet parity and has made notable progress in entities aims to target at least 50 percent (new use) – Female. bridging the gender divide in education. female beneficiaries by 2028. The AF aims to Target by 2028: The 2022/2023 academic year, for improve access to internet for pedagogical 26,000. instance, saw a significant female purposes in 150 schools by 2028, out of presence in secondary education, with which 50 percent of the beneficiary 68.2 percent of students being girls students will be female. compared to 49.1 percent boys. -Digital gender gap assessment in the Furthermore, women continue to districts where the schools with expanded outpace men in tertiary education as 28.3 connectivity are located to bridge location percent of higher education students are specific gender data gap and prioritize women compared to 19 percent for men. gender informed potential future activities. Despite this, there remains a disparity in STEM career choices, with fewer women pursuing these fields. Component 3. Digital Public Services and Marketplace The Digital Agenda and the Digital The Single Portal will offer gender-specific → People using Governance Action Plan which are digital services and will include capacity digitally enabled currently being implemented by NOSI building for woman to access and use those services (new clearly puts the emphasis on improving services, addressing gender gaps. To services) - Female. digital government services and the support women and girls in accessing and Target by 2028: related digital marketplace for Cabo using digital public services. 60,300. Verdeans. -It will support the design and However, the 2019 Continuous Multi- implementation of a user-centric → People using Objective Survey by the National Institute qualitative research (by consulting women digitally enabled of Statistics sheds light on the fact that users, women’s networks and non- services (enhanced there are higher rates of women governmental organizations) to understand services) – Female. mentioning low digital skills (22.2 percent women and girls’ perspectives on barriers Target by 2028: of women compared to 16.2 percent of to access to key digital services in Cabo 109,700. men) as a barrier to accessing and using Verde, including digital payment delivery the Internet.35 for public services. The findings of the 35 https://unesdoc.unesco.org/ark:/48223/pf0000390355 The World Bank Additional Financing to the Digital Cabo Verde Project (P171099) BARRIERS/GENDER GAPS IDENTIFIED STRATEGIC ACTIONS AND PROJECT RELEVANT DESIGN DECISIONS INDICATORS In addition, there is scope for qualitative study will inform the setup of a → Percentage of improvement to further gender equality Single Portal that will specifically offer female Digital in the current strategy, particularly as it gender-specific digital services to women Ambassadors relates to specific targets that aim at and girls. appointed. providing more meaningful access for -TA will also support adequate training Target by 2028: 50 women and girls to digital services, programs, for women and girls, pertaining percent including digital payment delivery to the access and use of digital services, and services. ensure that female staff is equally included → People using in all relevant capacity building, skills digital payments for training programs in the public sector. service delivery- -Digital inclusion will be strengthened by Female. Target by appointing "Digital Ambassadors" (of which 2028: 85,000. 50 percent women) to support businesses and citizens in the adoption and use of digital services. The Project will also support the training of the ambassadors to support women and female-owned businesses in the adoption and use of digital services by conducting local awareness and communication campaigns to increase their access to information about the use of digital services while combatting social norms and cultural barriers that prevent them from using digital tools and services. -The AF will also improve digital payment delivery for public services, with a target of 50 percent women beneficiaries.