Models For Leveraging Private Sector Investment in Digital Public Infrastructure... Tender

Procurement Summary

Country : Ethiopia

Summary : Models For Leveraging Private Sector Investment in Digital Public Infrastructure in Eastern Africa

Deadline : 31 Aug 2023

Other Information

Notice Type : Tender

TOT Ref.No.: 87431450

Document Ref. No. : 0002003193

Competition : ICB

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Expression of Interest are invited for Leveraging Private Sector Investment in Digital Public Infrastructure in Eastern Africa

Models For Leveraging Private Sector Investment in Digital Public Infrastructure in Eastern AfricaThe World Bank is seeking to recruite a consultant firm to provide a background study and technical assistance to create the analytical background to inform investment models that would guide the allocation of World Bank funds that seek to leverage counterpart investment from network operators; especially privately-owned firms. The models describe those cases where incentives for private sector investment alone are likely to be insufficient. This kind of model is known by various names; including viability gap financing; smart subsidies and reverse auctions; but it will be designated here as “matching investments”; between the public and private sectors. A particular innovation to be studied here is the use of multi-round auction models; delivered over electronic auction platforms; to allow for dynamic and efficient allocation of funds for several upcoming lending programs including Kenya Digital Economy Acceleration Program (KDEAP); Digital and Energy Connectivity for Inclusion in Madagascar (DECIM); and the Eastern Africa Regional Digital Integration Progrma (EARDIP) and other World Bank projects.The objective is to review the Matching Investments and other similar models; as used for extension of cellular networks and fiber in rural areas. The best practice report will serve to inform the drafting of Commercial Transactions Manuals (CTMs) for use in KDEAP; EARDIP and DECIM projects.The direct client for the work is the World Bank Digital Development Global Practice; and the firm would be working with the task teams for these projects. But the ultimate client is the countries that are being supported through the lending programs; currently; Djibouti; Ethiopia; Kenya; Madagascar; South Sudan and Somalia. The report should include a literature review that will draw upon previous work on this topic; including by the World Bank. It will also benefit from a a parallel study being carried out by an individual consultant to develop a practical manual for World Bank teams looking to apply private capital mobilization in their projects that will provide a historical perspective on what has worked; and what has not; in previous World Bank project. This consultancy assignment foresees two main deliverables:a) A background report on investment models that can be used to leverage private sector investment to construct digital public infrastructure. The report; which may later be published as a standalone report; should look in particular; though not exclusively; at the matching investments model; described above. It should look at the challenges and practical difficulties in applying such a model in the target countries and proposed safeguards to overcome them. This might include: i. Definition of options for incentivizing the private sector to invest alongside the Government; for instance by applying the “build once; use by all” model in which the winning bidder can subsequently own and operate the network. ii. Provision of assets and safeguards instruments to the Government; for instance by providing dark fiber or long-term internet supply contracts. iii. Options for achieving price discovery and definition of appropriate safeguards to prevent collusive behaviour on the part of bidders. iv. Definition of measures to prevent abusive behaviour on the part of dominant operators; and to avoid rewarding dominance (e.g.; Telma in Madagascar; HTG in Somalia or Safaricom in Kenya). v. International best practice in ensuring that the competitive bidding processes are technology neutral; for instance by allowing companies using non-fiber technologies (such as low earth orbit satellites; fixed wireless access or microwave) to bid alongside fiber-based solutions. Alternative technologies may be more appropriate in scarcely populated areas that are distant from the nearest fiber node. vi. Flow charts and/or decision trees to guide clients on selecting a particular set of procurement options and operationalizing them; vii. How to handle service level agreements; especially those that go beyond the lifetime of a project. viii. How to forecast and measure levels of private capital mobilization under the projects; drawing from experiences of other similar projects elsewhere in the world. b) A program of targeted technical assistance (TA) to the client countries; working in particular with the project implementation units (PIUs) of the KDEAP; DECIM and EARDIP projects. Those PIU s will; in turn be working with consultants tasked with developing the CTMs for each project (which is most cases is a disbursement condition) and draft bidding documents; adapted to local circumstances. The targeted technical assistance may include reviewing drafts; mentoring the local task teams; participating in stakeholder workshops and generally providing just-in-time assistance as required. For instance; it may involve providing tutorials on how to run a multi-round auction. In providing the technical assistance; the firm will work closely with a separate individual consultant hired by the Bank who will be tasked with acting as a liaison between the three parties (firm; Bank and client) and organizing the practical aspects of the TA;ssne indwpocENCit asAMTLCCRTRDOY

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