The World Bank Digital Governance and Economy Project (P172350) REPORT NO.: RES56695 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DIGITAL GOVERNANCE AND ECONOMY PROJECT APPROVED ON SEPTEMBER 23, 2021 TO REPUBLIC OF MOZAMBIQUE GOVERNANCE GLOBAL PRACTICE EASTERN AND SOUTHERN AFRICA REGION Regional Vice President: Victoria Kwakwa Country Director: Idah Z. Pswarayi-Riddihough Regional Director: Hassan Zaman Practice Manager: Omowunmi Ladipo Task Team Leaders: Zubair Khurshid Bhatti, Tomas Ricardo Rosada Villamar i The World Bank Digital Governance and Economy Project (P172350) ABBREVIATIONS AND ACRONYMS CERC Contingency Emergency Response Component DNIC National Directorate of Civil Identification (Direcção Nacional de Identificação Civil) DNRN National Directorate of Registries and Notaries (Direcção Nacional dos Registos e Notariado) EDGE Digital Governance and Economy project (Economia Digital e Governo Eletrónico) ESCP Environmental and Social Commitment Plan FM Financial Management FNDS National Sustainable Development Fund FUNAE National Energy Fund GoM Government of Mozambique ID Identification documents INAGE National Electronic Government (e-Gov) Institute (Instituto Nacional de Governo Electrônico) INTIC National Institute of Information and Communication Technologies (Instituto Nacional de Tecnologias de Informação e Comunicação) IPF Investment Project Financing IRI Intermediate Results Indicator IT Information Technology MCTES Ministry of Science and Technology and Higher Education (Ministério da Ciência, Tecnologia e Ensino Superior) MDA Ministries, Departments, Agency MDAP Mozambique Digital Acceleration Project MEF Ministry of Economy and Finance (Ministério da Economia e Finanças) MINEDH Ministry of Education and Human Development MIC Ministry of Industry and Commerce (Ministério da Indústria e Comércio) MISAU Ministry of Health MOI Ministry of Interior (Ministério do Interior) MoJ Ministry of Justice, Constitutional and Religious Affairs (Ministério da Justiça, Assuntos Constitucionais e Religiosos) PDO Project Development Objective PIM Project Implementation Manual PIU Project Implementation Unit RF Results framework TC Tropical Cyclone ii The World Bank Digital Governance and Economy Project (P172350) BASIC DATA Product Information Project ID Financing Instrument P172350 Investment Project Financing Environmental and Social Risk Classification (ESRC) Low Approval Date Current Closing Date 23-Sep-2021 28-Feb-2027 Organizations Borrower Responsible Agency Ministry of Science, Technology and Higher Education Republic of Mozambique (MCTES), Instituto Nacional de Governo Electrónico (INAGE), Ministry of Justice Project Development Objective (PDO) Original PDO To increase access to legal identification, digital public services and digital business opportunities. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D9060 23-Sep-2021 15-Oct-2021 14-Dec-2021 28-Feb-2027 150.00 62.11 77.71 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Background and Status iii The World Bank Digital Governance and Economy Project (P172350) 1. This restructuring paper seeks management approval for the restructuring of the Digital Governance and Economy (EDGE) project following the activation of the contingent emergency response component (CERC) to support the Republic of Mozambique’s response to the impacts of Tropical Cyclone (TC) Freddy approved by the World Bank in May 2023. The restructuring also proposes adjustments to project implementation arrangements to accelerate implementation. This is a Level 2 restructuring, and the second restructuring since effectiveness. The first restructuring, completed in May 2023, added the Ministry of Justice (MoJ) as an implementing agency for activities related to civil and identity registration1. For this second restructuring, the Ministry of Economy and Finance (MEF) has requested two changes : (i) the activation of EDGE’s CERC, in the amount of US$50 million requested on April 14, 2023; (ii) appointment of the National Electronic Government (e-Gov) Institute (Instituto Nacional de Governo Electrônico, INAGE), as implementing agency for all activities related to service delivery leveraging digital technologies (which were previously under the Ministry of Science and Technology, MCTES), requested on December 20, 2023. 2. EDGE is a 5-year, US$150 million Investment Project Financing (IPF) with an original project development objective to increase access to legal identification, digital public services, and digital business opportunities. EDGE was approved on September 23, 2021, and became effective on December 14, 2021, with no effectiveness delays. The project is comprised of five components: (1) building blocks: analog reforms, connectivity, and cybersecurity (US$45 million); (2) enablers: identification systems and digital services (US$70 million); (3) levers: Govtech Business Ecosystem (US$30 million); (4) project management; and (5) a no-cost Contingent Emergency Response component (CERC). The project is currently managed by two Project Implementation Units (PIUs): one within the Ministry of Science and Technology and Higher Education (MCTES), and one within the Ministry of Justice (MoJ), which are implementing activities relating to delivering services using digital platforms, and birth and identity (ID) registration, respectively. As of May 2024, disbursement stands at US$ 61.8 million, 41 percent of the total financing. 3. Overall Status. Following effectiveness, EDGE suffered from implementation delays, largely related to the project implementation arrangements. In the initial project design, MCTES was the implementing agency for the entire project. Following the first restructuring, a PIU was created within the Ministry of Justice to manage activities related to birth and identity registration, while MCTES would continue to remain the implementing agency for delivering digital platforms for service delivery. The latter are implemented by INAGE, while the National Institute of Information and Communication Technologies (INTIC) is responsible for associated legal reforms. Both institutions have financial and administrative autonomy but are administratively under MCTES. MCTES has been slow in providing approvals to launch bids and sign contracts for INTIC and INAGE. This led, inter alia, to the project rating being downgraded in the Implementation Status and Results Report. As of May 2024, Overall Implementation Progress is rated Moderately Unsatisfactory. Actions to upgrade the rating, including operationalization of the INAGE PIU, contract signature for the development and roll out of the citizen portal and interoperability platform, have been agreed with government and are expected to be confirmed in the next implementation support aide-memoire no later than September 2024. 4. Component Status. Component 1 activities include creation of an interoperability working group, and establishment of the main use case for the interoperability platform which will be verification of birth certificates and extraction of personal data to issue an identity card. Activities related to Public Key Infrastructure (PKI) and electronic signature is advancing with testing of electronic document signature using equipment acquired with project financing. The PKI will be evaluated by Portuguese and Brazilian peer entities, which will work with local universities to establish a training program for the PKI management, and an independent PKI audit will be carried out annually to ensure compliance with international standards. Under Component 2, the national free identification campaign launched in October 2023 has resulted in at least 250,000 IDs issued. Campaigns have been added for the City of Maputo, given the high population density, and will extend to the City of Matola and then to the Province of Maputo with project support for expansion, including communication campaigns and additional registration equipment. Support is also being provided to eliminate constraints to the issuance of IDs. Government services to be added to the services portal 1 Restructuring Paper - Digital Governance and Economy Project - P172350 (Report No. RES52988). World Bank Group. 2023 Page 4 of 22 The World Bank Digital Governance and Economy Project (P172350) were prioritized by INAGE and include request for a new ID card, duplicate birth certificate, driving license, commercial registration, Criminal Record Certificate, marriage certificate, vehicle ownership title, survivor pension certificate, which are among the most requested/needed services. CERC activation 5. The CERC activation was a response to the destruction caused by TC Freddy and the resulting pressing need to support rehabilitation in the transport, education, health, energy, water supply and sanitation, agriculture, and urban sectors across the country. TC Freddy caused significant damage to social and economic infrastructure, displacement of population and disruption of the provision of basic services. TC Freddy made landfall twice in Mozambique in February and March of 2023. It made its first landfall on February 24, 2023, in Vilanculos District, in Inhambane Province, as a Moderate Tropical Storm and affected five provinces in Mozambique (Sofala, Inhambane, Gaza, Maputo province and Maputo city). The Province of Inhambane was by far the hardest hit. TC Freddy made its second landfall on March 11, 2023, in the Namacurra district, in Zambezia province as a Category 4 Cyclone, and affected six provinces (Zambezia, Tete, Niassa, Sofala, Manica and Nampula), with Zambezia by far the most affected province. Overall, the cyclone affected 1,187,265 people, with 698 wounded and 183 confirmed deaths; 283,618 houses reported severe damages, including 132,364 houses destroyed and 67,912 houses flooded. In addition, 123 health units and 2,549 classrooms (in 1,268 schools) reported damages, affecting over 230,329 students and 4,337 teachers. In the transport sector, over 4,334 km of roads and 9 critical bridges were damaged, and 73 roads were temporarily impassable. Water supply, energy, agriculture, and fisheries were also affected, with recorded damages to 15 water supply systems, 164 boreholes and 637 electricity poles. The storm also affected a total of 390,043 hectares of crops, 246 fishing gears, and 306 pisciculture tanks.2 6. The Government provided an immediate initial response in close collaboration with humanitarian and development partners. On February 21, 2023, the Government of Mozambique (GoM) issued a national Red Alert to Cyclone Freddy through the Resolution n.4/2023, of February 21, covering the entire country. The Government mobilized US$5.83 million for emergency response, of which US$5.1 million was allocated by the Government and US$0.73 million from the World Food Program, while goods valued at US$66.27 million were committed by development partners for contingency purposes as part of the Government Contingency Plan 2022/2023, coordinated by the National Disaster Management and Risk Reduction Institute (INGD) in the amount of US$197.3 million. The UN launched a Flash Appeal for an amount of US$48.07 million to assist 387,000 people, of which US$9.9 million was mobilized to support the search and rescue operations and emergency needs. 7. With support from development partners, the GoM, through the Post-Disaster Reconstruction Office (GREPOC), prepared a light Post-Disaster Needs Assessment (PDNA) to inform post-disaster recovery and reconstruction efforts. As a corporate response to disasters, the World Bank conducted a remote Global Rapid Post-Disaster Damage Estimation (GRADE), on the direct damages of the two landfalls of TC Freddy. The GRADE has estimated the direct damages at US$1.53 billion, of which US$484.4 million on residential buildings, US$276.2 million on non-residential buildings, US$576.9 million on infrastructure, and US$197.1 million on agriculture. Total damages account for 9.7 percent of Mozambique's 2021 National Gross Domestic Product (GDP). In March 2023, the Government pledged US$3.95 million (MZM 250 million) for the early recovery of public infrastructure and services in Zambezia Province. In April 2024, the World Bank approved an allocation of US$300 million from the Crisis Response Window (CRW) for the recovery of roads, drainage and water resources management infrastructure in the areas affected by the storm. 8. On April 14, 2023, the GoM requested the World Bank activation of the CERC in the amount of US$150 million to support government emergency response efforts. The proposed emergency response focused on the rapid restoration of transport infrastructure, the provision of education, health, energy, water supply and sanitation 2 Mozambique: Tropical Cyclone Freddy Global Rapid Post-Disaster Damage Estimation (GRADE) Report. World Bank. 2023. Page 5 of 22 The World Bank Digital Governance and Economy Project (P172350) services, and the resumption of agricultural activity in the affected areas, including in the municipalities hard hit, such as the cities of Maputo, Matola and Quelimane, and key towns in the provinces of Inhambane, Tete, Niassa and Nampula. On May 3, 2023, the World Bank approved the activation of the CERC in the amount of US$150 million for emergency response in the affected areas, mobilized from the following IPF operations: (i) Digital Governance and Economy Project (P172350, IDA-D9060) US$50.0 million; Mozambique Northern Urban Development Project (P175266, IDA-D9430) US$20.0 million; Rural and Small Towns Water Security Project (P173518, IDA-D9410) US$30.0 million, and Mozambique Digital Acceleration Project (P176459; IDA-71820) US$50 million. 9. The MEF is serving as the CERC Coordinating Authority. The CERC activities is under implementation for a period between 12 months to a maximum of 18 months by ten (10) World Bank-funded Project Implementation Units (PIU) already in place in the sectors benefiting from CERC activation. A CERC Steering Committee (CERC SC) chaired by the MEF and composed of the Ministers of Public Works, Housing and Water Resources (MOPHRH), Agriculture and Rural Development (MADER), Education and Human Development (MINEDH), Health (MISAU), Energy and Mineral Resources (MIREME) and State Administration and Public Service (MAEFP) will be established to provide high-level political orientation and oversight of the implementation of CERC activities in all sectors and municipalities. 10. The CERC activation for EDGE entails reallocating US$50 million to the CERC Component (Component 5) from the other components, adjusting project activities and indicators accordingly and adding new Implementing Agency (IA) arrangements. The CERC activities for EDGE will entail: (i) the purchase and distribution of seeds kits to affected farmers, implemented by the National Sustainable Development Fund (FNDS); (ii) the repair and reposition of powerline transport network and equipment, implemented by Mozambique Electricity (EDM); (iii) the repair and reposition of powerline transport network and equipment, implemented by the National Energy Fund (FUNAE); (iv) the provision of temporary campaign hospitals, medicines and medical equipment, assessment of damages, and preparation of biddings documents for infrastructure rehabilitation, implemented by the Ministry of Health (MISAU); and (v) the emergency replacement of roofs of targeted education infrastructure, implemented by the Ministry of Education and Human Development (MINEDH) (see Annex 1 for further details). II. DESCRIPTION OF PROPOSED CHANGES 11. The restructuring proposes the following changes: (a) component and cost changes; (b) PDO change; (c) revision of the Results Framework (RF), including the addition of the CERC-related Project Development Objective, PDO level and intermediate indicators, and revisions to existing indicators and targets; (d) implementing agency changes; (e) reallocation between disbursement categories; (f) revisions to disbursement estimates. 12. Components. In order to reallocate US$50 million to Component 5 for the CERC, other components of the project need to be reduced. The proposed criteria for the reductions are to better concentrate the focus of the project on key activities relating to ID registration and improving public service delivery through digital technologies, while simplifying and reducing the breadth of the scope of the project. This will allow the project to maximize impact. In addition, the restructuring will be used to make small adjustments to improve clarity of delineation with activities in the Mozambique Digital Acceleration Project (MDAP, P176459). Accordingly, component changes were agreed with MCTES as follows: (i) Sub-component 1.1: Analog Reforms: the scope of the advanced digital skills training program for civil servants will be reduced. While EDGE will finance a government digital skills needs assessment, and the first phases of the roll out in training to support priority activities, subsequent training may be supported by the pipeline State Capacity project (P179942) under preparation, given the impact of digitalization to increase efficient public service delivery. (ii) Component 1.2: Government Connectivity and Cybersecurity (US$13 million equivalent) will be cancelled. Activities relating to these topics were initially split between EDGE and the Mozambique Digital Acceleration Page 6 of 22 The World Bank Digital Governance and Economy Project (P172350) Project (MDAP, P176459). In order to limit the risk of overlap and to facilitate coordination and implementation, these activities will therefore be canceled under EDGE and consolidated under MDAP, as agreed with the MDAP beneficiaries. Procurements that have been initiated under this sub-component will be transferred to the MDAP PIU. (iii) Component 3: GovTech Business Ecosystem (US$30 million) will be cancelled, and funds reallocated to the CERC. Implementation of these activities had been delayed due to lack of clarity in vision and complexity of design, despite the interest shown from the ecosystem. While these activities are still considered priority for both the GoM and the World Bank, it was determined that the outcome was not achievable under the project. (iv) Component 4. Project Coordination: In light of the difficulties encountered during the first months of implementation, the creation of a second PIU within the MoJ, and the additional coordination needs brought on by the CERC activation, Component 4 is increased from US$5 million to US$7.5 million. (v) Component 5. CERC: Budget from cancelled and scaled down activities in the amount of $50 million are reallocated to this component. 13. Changes to the components and cost are shown in Table 1. Table 1: Summary of EDGE reallocations between components Original Proposed Component (US$M) (US$M) Component 1: Analog Reforms, Connectivity and Cybersecurity 45.0 21.9 Subcomponent 1.1: Analog Reforms 32.0 21.9 Subcomponent 1.2: Government Connectivity and Cybersecurity 13.0 0.0 Component 2: Identification systems and digital services 70.0 70.6 Subcomponent 2.1: Identification Systems 58.0 50.75 Subcomponent 2.2: Digital Services 12.0 19.85 Component 3: Digital Business Ecosystem 30.0 0.0 Component 4: Project Coordination 5.0 7.5 Component 5: Contingent Emergency Response Component 0.0 50.0 TOTAL 150.0 150.0 14. PDO and theory of change. The PDO is currently to “increase access to legal identification, digital public services, and digital business opportunities.” The proposed revised PDO reflects the CERC activation and the dropping of Component 3 to “increase access to legal identification and public services leveraging digital technologies”. The theory of change will be amended to reflect the cancelations of Sub-Component 1.2 and Component 3, but otherwise remain largely unchanged. See Figures 1 and 2. Page 7 of 22 The World Bank Digital Governance and Economy Project (P172350) Figure 1: Original EDGE Theory of Change Figure 2: Revised EDGE Theory of Change Page 8 of 22 The World Bank Digital Governance and Economy Project (P172350) 15. Implementation arrangements. As per the MEF request in December 2023, the fiduciary responsibility will be decentralized from MCTES. Under the new proposed institutional arrangements, INAGE, the agency responsible for the implementation of the majority of activities related to delivering improved public services leveraging digital technologies, would become a project implementing agency. INAGE is a public institution with legal status and administrative autonomy. MCTES and INTIC would become project beneficiaries under the project. The project Steering Committee, chaired by the MCTES minister, would remain unchanged. A PIU will be created within INAGE to manage the project, and staff recruited under the MCTES PIU will be transferred to the new PIU. 16. The proposed changes will be key to quickly scale up activities related to improved service delivery leveraging digital technologies. Given the strong dynamic that has been established with INAGE (including that it has already finalized terms of reference for a total value of US$13 million), appointing it as the implementation agency will allow for the rapid launch of these tenders. Institutional instability will be minimized, given that some of the recruited staff will be transferred to the new PIU, and will now report to INAGE. The MCTES Permanent Secretary has agreed to continue processing ongoing procurements until the restructuring is complete. 17. The financial management (FM) assessment determined that INAGE has FM arrangements acceptable to IDA. Although INAGE does not have experience in handling World Bank-financed operations, there is an existing Department of Administration and Finance (DAF) with experience in managing other donors’ funds. The DAF has a solid track record in managing funds from different donors, as evidenced by the successful implementation of the UNICEF (2019-2020) project, and the ongoing project with the Italian Agency for Development Cooperation which started in 2021. The unqualified opinion from the auditors for the UNICEF project's single audit indicates that the financial statements and related information were presented fairly and in accordance with the applicable financial reporting framework. The upcoming audit for the Italian Agency, which is being done by a private firm, will similarly assess the financial reporting and management of that project upon its completion. A senior FM specialist will be recruited to strengthen FM capacity within INAGE and support project implementation and will be supported by the senior accountant currently hired to support EDGE through MCTES PIU.3 The MCTES Permanent Secretary has agreed to launch the recruitment of the FM specialist through advance procurement. INAGE as a Government institution is being audited by the Administrative Tribunal (the country’s supreme audit institution) that is currently mandated to audit all government funds, including donors-financed, project funds will be disbursed through e-sistafe which is a system that the team is experienced in its use and is aware of the ongoing challenges to operate. 18. Disbursements will continue to be done on a transactional basis. INAGE will open a Designated Account denominated in US dollars within the Bank of Mozambique (Central Bank) to receive funds from IDA. MCTES will transfer financial management responsibility to INAGE. The project will still have the option of disbursing the IDA funds through direct payment, reimbursement, and special commitment. Disbursement estimates have been revised in line with the restructuring. 19. The residual FM risk rating remains Substantial due to the complexity of the project. However, the World Bank has started training DAF staff in aspects related to disbursements and financial management as part of the institutional capacity plan that we intend to build at INAGE. A detailed action plan will be indicated in the comprehensive FM assessment report. 3 The FM specialist is the only expected additional recruitment for INAGE’s PIU. EDGE is using country systems and the existing PIU is also managing the MozSkills project (Improvement of Skills Development in Mozambique (MozSkills), P167054, US$104 million, approved September 2020). A financial management officer can manage only a single account in Mozambique’s financial management information system and would not be authorized to manage both the MCTES and INAGE accounts. Page 9 of 22 The World Bank Digital Governance and Economy Project (P172350) 20. Applicable Procurement Procedures: The World Bank’s “Procurement Regulations for IPF Borrowers” (Procurement Regulations) dated November 2020 will be changed to World Bank’s “Procurement Regulations for IPF Borrowers” (Procurement Regulations) dated September 2023. 21. Procurement Implementation Arrangements: INAGE procurement unit is not familiar with implementation of the World Bank-financed projects, but PIU procurement staff will move from the MCTES PIU to INAGE, and additional procurement staff will be recruited as required, thus, the procurement capacity of the project will be secured. 22. Environmental and Social Standards. The restructuring will not entail the addition of any new project typology. Environmental and Social (E&S) risks remain unchanged, and the relevant E&S Standard also remain the same. The existing E&S instruments (SEP, LMP, Code of Practice of ICT and E-Waste Management, COVID-19 Protocol & SEA/SH Risk Assessment and Action Plan) still meet project needs and do not require amendment. However, given the launch of project activities in Cabo Delgado, a Security Risk Assessment and Management Plan will be prepared before activities will be undertaken to ensures a secure environment for communities and workers. Sharing of E&S staff between MozSkills PIU and this project has been proven to not be efficient. MCTES has limited experience in implementing projects under the ESF and this situation has led to the lack of reporting and implementation of the actions and material measures agreed upon in the Environmental and Social Commitment Plan (ESCP) for environmental and social standards to date). It was agreed that the E&S specialist would be hired through the MoJ and will support all the activities associated with the project. Due to limited progress on E&S aspects, the performance was downgraded from Moderately Satisfactory (MS) to Moderately Unsatisfactory (MU) during the assessment. The ESCP was revised and actions on E&S have been agreed for completion by July 2024 which is expected to result in a rating upgrade in the next status report in September 2024. 23. Components. Component 1 “Building blocks: Analog Reforms and Connectivity”, and Component 2 Enablers: Identification Systems and Digital Services” are amended, to reflect the change in orientation following the activation of CERC and the government priorities. The new titles are: Component 1 “Building blocks: Analog Reforms and Interoperability”, and Component 2 “Enablers: Identification Systems and Public Service Delivery”. 24. Results framework (RF). The RF will be amended in line with the project activity changes. In particular: (i) PDO and intermediary results indicators (IRIs) relating to Component 3 will be deleted, and PDO and IRI indicators will be added to reflect the CERC component; (ii) IRIs related to cybersecurity, data protection, and government connectivity will be deleted; (iii) new IRIs and target revisions will be added to reflect the pace of implementation up to date, as well as adjustments to better reflect activities under implementation regarding improved public services through digital technologies; and (iv) targets will be updated to take into account the delays in project implementation, reduced budget due to CERC activation, and agreed action plan with the client. 25. The proposed reallocation requires changes to PDO-level Indicators and their targets (see Results Framework for details): i. The formulation of the PDO indicator relating to ID registration (sub-component 2.1) is amended from percentage coverage of the population, to the number of individuals registered in the central ID database. This will allow alignment with the agreement between MEF and the Ministry of Interior on the Prevention and Resilience Allocation (PRA) indicator relating to ID. The PRA indicator was changed from percentage to numeral to avoid variations in reporting, due to different data being used on current population numbers and projections at the time of reporting. The data will be extracted directly from the Ministry of Interior (MOI) ID registry. ii. The PDO indicator related to public services leveraging digital technologies “Users benefiting from newly streamlined and/or digitalized public services” (sub-component 2.2) is being retrofitted to the new World Bank scorecard indicators, and the intermediate targets are revised to reflect the decrease in budget allocated Page 10 of 22 The World Bank Digital Governance and Economy Project (P172350) to the public service delivery component as a result of the CERC activation. In line with the Scorecard indicators, the indicator is now “People using Digitally Enabled Services”. iii. PDO level indicators related to Component 3: Digital Ecosystem, are cancelled to reflect the cancellation of that component. 26. The proposed reallocation requires changes to Intermediate Results Indicators (IRIs) and their targets: i. Building blocks: Analog Reforms and Interoperability a. The IRI “Establishment of legal and institutional foundations for digital transformation” has been revised: the targets for this indicator are updated to reflect recent discussions on the design and activities under implementation in the project. b. The IRI “Implementation of institutional and policy framework for data privacy, open data and interoperability” has been revised: intermediate targets relating to Data protection are dropped under EDGE and consolidated under MDAP. The indicator now focusing only on the analog reforms required for data interoperability, and have been updated based on the latest status of implementation of activities. c. The IRI “Implementation of institutional and policy framework for cybersecurity” is marked for deletion, given that activities related to cybersecurity are dropped under EDGE and consolidated under MDAP. d. The IRI “Establishment of a new masterplan and business model for the government network” is marked for deletion, given that activities related to cybersecurity are dropped under EDGE and consolidated under MDAP. ii. Enablers: Identification Systems and Public Service Delivery a. The IRI “Birth Registration coverage from 0 to five years (Percentage)” has been revised: the targets have been reviewed downwards to take into account the delays in implementation and the CERC activation and related reduced budget. b. The IRI “Implementation of institutional, legal, and policy framework for identity management” is replaced by the indicator” Relying parties using the identity verification services (number)” which reflects the outcome sought by the project c. The IRI “Service portal is providing services” is added, to reflect the government’s priority activities d. The IRI “Number of user engagement and experience sessions, including users with disabilities” is dropped, given that user engagement is mainstreamed into the development of each digital service. iii. Levers: Digital Business Ecosystem. All IRIs related to the component are dropped. iv. Contingency Emergency Response Component (CERC). New indicators are included to reflect the CERC activation. a. Smallholder households that received and used agricultural input kits as result of the CERC (Number), b. Lines of medium voltage and low voltage rehabilitated under the project (Kilometers). Page 11 of 22 The World Bank Digital Governance and Economy Project (P172350) III. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ DDO Status ✔ PBCs ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Overall Risk Rating ✔ Legal Covenants ✔ APA Reliance ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ Page 12 of 22 The World Bank Digital Governance and Economy Project (P172350) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action Instituto Nacional de Governo Electrónico Implementing New (INAGE) Agency Ministry of Justice Implementing No Change Agency Ministry of Science, Technology and Higher Implementing Marked for Deletion Education (MCTES) Agency OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO To increase access to legal identification, digital public services and digital business opportunities. Proposed New PDO To increase access to legal identification and public services leveraging digital technologies. OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Building blocks: Analog Reforms, Analog Reforms and 45.00 Revised 21.90 Connectivity, and Cybersecurity Interoperability Enablers: Identification Systems Identification Systems and 70.00 Revised 70.60 and Digital Services Public Service Delivery Levers: Govtech Business Levers: Govtech Business 30.00 Revised 0.00 Ecosystems Ecosystems Project Management and Project Management and 5.00 Revised 7.50 Implementation Capacity Implementation Capacity Contingent Emergency Response Contingent Emergency 0.00 Revised 50.00 (CERC) Response (CERC) TOTAL 150.00 150.00 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Page 13 of 22 The World Bank Digital Governance and Economy Project (P172350) Current Proposed IDA-D9060-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GD,WK,NCS,CS,GSG,OC,TRN 105,000,000.00 3,639,253.72 69,387,303.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Emergency Expenditures Pt.5 0.00 0.00 35,612,697.00 100.00 100.00 Total 105,000,000.00 3,639,253.72 105,000,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2022 2,000,000.00 0.00 2023 15,000,000.00 20,000,000.00 2024 35,000,000.00 30,000,000.00 2025 35,000,000.00 40,000,000.00 2026 35,000,000.00 40,000,000.00 2027 28,000,000.00 20,000,000.00 2028 0.00 0.00 . Page 14 of 22 The World Bank Digital Governance and Economy Project (P172350) . Results framework COUNTRY: Mozambique Digital Governance and Economy Project Project Development Objectives(s) To increase access to legal identification, digital public services and digital business opportunities. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Improved access to legal identification and public services leveraging digital technologies (Action: This Objective has been Revised) Number of individuals registered in the civil 8,200,000.00 8,800,000.00 9,250,000.00 11,100,000.00 12,800,000.00 17,000,000.00 identification database. (Number) Rationale: This indicator is being revised to align with the agreement between the Ministry of Finance and the Ministry of Interior on the Prevention and Resilience Action: This indicator has been Allocation (PRA) indicator relating to ID. In particular, the PRA indicator was changed from percentage to numeral to avoid variations in reporting. The data Revised will be extracted directly from the MOI ID registry. Of which, share of increase that are women 0.00 50.00 50.00 50.00 50.00 50.00 (Percentage) People using digitally enabled 0.00 0.00 0.00 100,000.00 700,000.00 2,000,000.00 services (Number) Improved access to digital business opportunities (Action: This Objective has been Marked for Deletion) Page 15 of 22 The World Bank Digital Governance and Economy Project (P172350) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Number of supported firms offering new and/or enhanced 0.00 0.00 5.00 20.00 100.00 200.00 digital tools in support to the Govtech ecosystem (Number) Action: This indicator has been Marked for Deletion of which percentage with women owned/led firms 0.00 0.00 25.00 25.00 30.00 35.00 (Percentage) Action: This indicator has been Marked for Deletion PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Building blocks: Analog Reforms and Interoperability (Action: This Component has been Revised) The Government A catalogue of services Roll out of the government There is no Government interoperability platform A first interoperability 15 public systems are for interoperability is interoperability platform (Text) interoperability platform is deployed in a test use case is deployed. interoperable available. environment. Rationale: Action: This indicator has been This indicator are updated to reflect recent discussions on the design and activities under implementation in the project. In particular, this indicator changes Revised the focus from analog reforms, to the deployment of the interoperability platform, which is a priority for government. Page 16 of 22 The World Bank Digital Governance and Economy Project (P172350) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 15 Ministries and No effective legal, Data catalog for key Data standards are Adoption of institutional and institutions are trained on institutional and policy datasets is available, and defined across policy framework for data the new data governance framework for data design of data category Government priority governance (Text) arrangements and governance. and classification policy. sectors. standards Rationale: Intermediate targets relating to cybersecurity and data protection are removed given that these activities are consolidated under the MDAP project. The Action: This indicator has been indicator now focusing only on data governance policies, institutional arrangements, and practices, which are key to both interoperability as well as data Revised protection. National Cybersecurity No active cybersecurity Strategy and Policy CSIRT has reviewed policy and strategy. Procedures Manual to Independent firm has Independent firm has drafted and published. (including through public Implementation of institutional Cybersecurity and operationalize a civilian carried out a carried out a Government has consultations), updated and policy framework for Cybercrime legislative CSIRT is adopted and cybersecurity audit of 20 cybersecurity audit of 40 undertaken a review and and published the cybersecurity (Text) framework in need of security testing of five key government digital key government digital amendment of existing National Cybersecurity review and potential (5) key systems systems systems cybersecurity and Strategy and Policy updates. cybercrime legislation. Action: This indicator has been Marked for Deletion Establishment of a new No masterplan and masterplan and business Feasibility study Business model drafted Business model Business model Business model business model for the model for the government completed and approved implemented implemented implemented government network network (Text) Action: This indicator has been Marked for Deletion Enablers: Identification Systems and Public Service Delivery (Action: This Component has been Revised) Page 17 of 22 The World Bank Digital Governance and Economy Project (P172350) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Number of individuals registered in the civil 1,000,000.00 2,600,000.00 5,200,000.00 7,800,000.00 13,000,000.00 registration database (e- SIRCEV) (Number) Rationale: Action: This indicator has been Similarly to the civil identification PDO level indicator, this indicator is modified to focus on the number of people registered. This will facilitate data Revised collection, which will be done through extraction from the information system. Of which percentage increase are women 50.00 50.00 50.00 50.00 50.00 50.00 (Percentage) Action: This indicator has been Revised Simplified and Improved and integrated birth No integration of birth Interoperability of birth integrated process Interoperability of birth and ID registration processes and ID registration and ID registration adopted for nationwide and health information and systems (Text) processes and systems. systems late birth and ID system registration Rationale: This new indicator is focused on improving the integration of processes and systems for birth and ID registration, which is necessary in order to scale up the Action: This indicator is New number of ID registrations. Number of relying parties using the identity verification 0.00 1.00 3.00 6.00 services (Number) Action: This indicator has been Revised Page 18 of 22 The World Bank Digital Governance and Economy Project (P172350) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 4 transactional services 15 transactional services Service portal is providing No functioning service 4 information services 10 information services and 20 information and 40 information services (Text) portal available available services are available services are available Rationale: Action: This indicator has been This indicator is being added to reflect the deployment of the service portal, which is a priority for the Government of Mozambique. Revised Number of user engagement and experience sessions, 0.00 2.00 5.00 10.00 10.00 10.00 including users with disabilities (Number) Action: This indicator has been Marked for Deletion People benefitting from actions that advance gender 0.00 900,000.00 1,230,000.00 4,700,000.00 5,800,000.00 equality (Number) Rationale: Action: This indicator is New This indicator is added to reflect the World Bank scorecard results. Levers: Digital Business Ecosystem (Action: This Component has been Marked for Deletion) Number of individuals trained 0.00 500.00 2,500.00 6,000.00 9,500.00 11,500.00 in digital skills (Number) Action: This indicator has been Marked for Deletion out of which women 0.00 150.00 1,000.00 3,000.00 4,750.00 5,750.00 (Number) Page 19 of 22 The World Bank Digital Governance and Economy Project (P172350) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Action: This indicator has been Marked for Deletion Number of firms with increased Govtech capabilities 0.00 0.00 150.00 450.00 700.00 1,100.00 (Number) Action: This indicator has been Marked for Deletion out of which women owned 0.00 0.00 15.00 90.00 175.00 330.00 and/or led firms (Number) Action: This indicator has been Marked for Deletion Number of digital SMEs graduating from business development services and/or 0.00 0.00 5.00 20.00 75.00 150.00 receiving private sector funding as a result of project support (Number) Action: This indicator has been Marked for Deletion of which women owned and/or led MSMEs 0.00 0.00 1.00 5.00 25.00 50.00 (Number) Action: This indicator has been Marked for Deletion Contingency Emergency Response Component (CERC) (Action: This Component is New) Number of smallholder 0.00 196,468.00 households that received and Page 20 of 22 The World Bank Digital Governance and Economy Project (P172350) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 used agricultural input kits as result of the CERC (Number) Action: This indicator is New Km of medium voltage and low voltage lines rehabilitated 0.00 199.00 under the project (Kilometers) Action: This indicator is New IO Table SPACE Click here to enter text. Page 21 of 22 The World Bank Digital Governance and Economy Project (P172350) Annex 1: Allocation of CERC funding to projects and agencies EDGE CERC allocation has been awarded to five government agencies, as detailed in the table below: Project CERC Cost Sector PIU Activities (US$M) Sustainable Rural National Purchase and distribution Economy Program Sustainable Agriculture 19 041 376.7 of seeds kits to affected (P174002) Development Fund farmers (FNDS) Mozambique Energy Repair and reposition of for All (ProEnergia) Mozambique 15 008 860.77 powerline transport (P165453) Electricity (EDM) network and equipment Energy Mozambique Energy Repair and reposition of for All (ProEnergia) National Energy 2 781 458.56 powerline transport (P165453) Fund (FUNAE) network and equipment Provision of temporary campaign hospitals Mozambique Primary Provision of medicines and Health Care Ministry of Health medical equipment Health Strengthening 11 617 084.07 (MISAU) Program (P163541) Assessment of damages, preparation of biddings documents for infrastructure rehabilitation Improving Learning Ministry of and Empowering Education and Emergency replacement of Education Girls in Mozambique Human 2 828 321.48 roofs of targeted education (P172657) Development infrastructure (MINEDH) Page 22 of 22