1 RCIPMW, AFFORDABLE BROADBAND CONNECTIVITY FOR MALAWI

2 Overview of the presentation STATISTICAL BACKGROUND RATIONALE FOR THE PROJECT PROJECT OBJECTIVE AND DESCRIPTION

3 STATISTICAL BACKGROUND

4 ICT revolution in Africa The total number of telephones in Sub-Saharan Africa has increased by >14 times in 10 years

5 Growth of the Telecom Sector in Malawi Malawi

6 Comparison of international call rates 2006

7 Comparison of Mobile Rates Effective revenue per calling minute (Mobile operators, 2006)

8 Comparison of broadband penetration

9 Economic implications of the digital divide World bank OECDSSA 4x longer US$ per container ,000 1,500 2,000 2,500 OECDSSA At more than 2x the cost $300 Billion Industry … only 10% realized India / Canada / Ireland have captured 75% of the realized market

10 PROJECT RATIONALE

11 From the digital divide to digital advantages Economic Growth –Broadband can be an effective tool in enhancing economic efficiency in Malawi and therefore growth of any sector in the economy –Broadband can spur new business models and therefore growth of the ICT sector –Broadband is a platform to launch advanced development/commercial services –ICTs link people across geographical boundaries: global village

12 PROJECT OBJECTIVE AND DESCRIPTION

13 PROJECT OBJECTIVES -To address the Missing Gap (coast connectivity) -To improve quality, affordability and availability of broadband

14 RCIPMW project approach Open access and pro-competition format for all network elements Sector wide approach to facilitate commercial service uptake and the participation of diverse role players PPP model of implementation for efficiency, private sector resource mobilisation Private ownership and operation of network infrastructure elements Redundancy/diversity of routes, cables and landing stations to enhance competition

15 RCIPMW project description RCIP is multi-lateral project to connect to IO submarine cables Funding sourced from the WB 2 year rollout plan Kenya, Burundi, Madagascar, Rwanda have benefited Malawi component awarded the sum of US$ 20 million Submarine cable expected to be operational by 2010 PPP model to be used for both wet and dry portions GOM is a long term capacity pre-purchaser PC designated implementation unit

16 Project components 1.ENABLING ENVIRONMENT –Capacity Building and Advisory Support –Regulatory Reform Support –Environmental Management and Resettlement –Monitoring and Evaluation & Communications 2.CONNECTIVITY -Pro-competition Open Access -Fibre Connectivity to the Coast -Virtual Landing Point -Targeted Beneficiaries

17 Project Components Cont’d 3. PROJECT MANAGEMENT -RCIPMW Establishment and Set up -Project Steering Committee (MACRA, MICE, MoF, MoPDC, NRA, MoLNRE, MoJ)

18 Progress to date Stakeholder consultations during the preparatory stages - completed Covenant Requirements of the IDA – almost complete Authorisation Bill - passed by Parliament on 14 th July 2009 Recruitment and Appointment of Project Staff - PM, FMS, PPS Project Appraisal Document (PAD) – Country Annex Issued Environmental Social Management Framework – done Resettlement Policy Framework – done

19 Work in progress and outstanding items The Project Work Plan for period August 09 to an 11 - in progress The drafting of TORs governing consultants, technical advisers and goods suppliers – in progress Recruitment of consultants and technical advisers - outstanding PPP broadband connectivity tender – outstanding VLP tender – outstanding Targeted institutions sub component – outstanding Legislation/regulatory framework review/reform (other parties responsible) – outstanding

20 Programme expectations Programme expectations Government launches tender to supply broadband regional connectivity from Malawi to Dar-Es-Salaam Operators build Malawi-Tanzania high capacity hop Government signs long-term supply contract with winning bidder Bidder owns and operates network infrastructure under strict conditions A VLP is established in Malawi granting all operators and ISPs equal access There is an up to tenfold drop in broadband charges

21 For more information, please contact : The CEO The Privatisation Commission P.O. Box 937 Blantyre. Tel: Fax:

22 Thank You for Your Attention