2004年-世界发展银行全球_Output-Based_Aid_in_Nepal___Expanding_Telecommunications_Service_to_Rural_Areas_4页_768kb

OBA Approaches: Output-Based Aid in Nepal

Core Content

The document discusses the implementation of an output-based aid (OBA) project in Nepal aimed at expanding telecommunications services to rural areas. The project was designed to address the significant gap in rural connectivity by involving the private sector through a competitive bidding process.

Background

• Nepal's Demographics: A landlocked country in South Asia with a population of about 24 million, 88% of whom live in rural areas. GDP per capita is approximately $240.
• Political Context: Nepal operates as a constitutional monarchy with a multiparty parliamentary democracy. In 2002, the king dismissed the prime minister, leading to a period of governance by the king and his appointed cabinet.
• Security Issues: A Maoist insurgency since 1996 and frequent general strikes have affected the country's stability.

Project Design

• Objective: Expand telecommunications services to 534 village development committees (VDCs) in the Eastern Development Region.
• Funding: The project was funded through a credit from the International Development Association (IDA) of the World Bank Group.
• Model Inspiration: The design drew on successful OBA experiences in Latin America, particularly the use of minimum subsidy auctions.
• Subsidy and License: A one-time subsidy was provided, and the rural service provider received a 10-year renewable license.
• Exclusivity and Services: The provider was granted limited exclusivity for five years and the right to offer domestic and international long-distance services.
• Mandatory Services: The provider must install and operate two public access lines in each VDC, located in two different wards, and offer local, long-distance, and international services, as well as free emergency calls and directory assistance.
• Technology Flexibility: The provider is not required to use a specific technology, allowing for adaptability in service delivery.

Bidding Process

• First Round: Launched in September 2000, with two applications. One bidder withdrew due to security concerns, leading to the failure of the first round.
• Second Round: Launched in February 2003, with two applications again. The lowest bidder, a consortium led by STM Communications Services, was selected.
• Subsidy Amount: The total subsidy was $11,865,000, which was higher than the average in Latin America, due to remote terrain, low income, and political risk.
• Regulatory Adjustments: The RFA was revised to include default consumer tariffs and interconnection charges, which helped avoid financial inconsistencies and delays.

Key Measures to Increase Success

• Accelerated Subsidy Payments: The subsidy was disbursed in tranches as milestones were achieved.
• Flexible Financial Capacity Requirements: Bidders had more options to demonstrate financial capability.
• Adaptability to Security: The provider could serve alternative areas if security in designated VDCs deteriorated.

Progress and Outcomes

• Network Rollout: STM began deployment in April 2004 and met the first and second milestones by October 2004, with plans to complete the third by the end of December 2004.
• Impact: The project is providing telecom services to about 4 million people who previously had no access.
• Challenges: Despite progress, the telecom sector remains largely state-controlled, with inadequate service levels and an underdeveloped regulatory framework.

Lessons Learned

• Institutional Support: The project's success was driven by the government's commitment, NTA's leadership, and international advisers.
• Regulatory Development: A robust regulatory framework is essential for attracting investors and ensuring project success.
• International Financing: The World Bank can play a key role in funding and supporting OBA projects, especially in developing countries.
• Adaptability: The ability to revise the project design based on initial failures and changing conditions is crucial.

Conclusion

The Nepal OBA project demonstrates how output-based aid can be used to expand telecommunications access in rural areas, even in challenging political and security environments. It highlights the importance of regulatory clarity, institutional commitment, and flexible financing mechanisms in achieving sustainable service delivery.