Assist Mcit In Framing Up Strategy For Privatization Of Afghan Telecom Tender, Afghanistan - 2441116

Procurement Summary

Country : Afghanistan

Summary : Assist Mcit In Framing Up Strategy For Privatization Of Afghan Telecom

Deadline : 28 Feb 2015

Other Information

Notice Type : Tender

TOT Ref.No.: 2441116

Document Ref. No. : MCIT/ICTDP/C-1.16 Amendment 1

Financier : World Bank (WB)

Purchaser Ownership : -

Tender Value : Refer Document

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Tender Details

Ministry of Communications and InformationTechnology (MCIT);Islamic Republic of Afghanistan Request for Expressions of Interest (REOI)and the Terms of Reference (TOR) Individual Consultant to assist MCIT in Framing up Strategy for Privatization of Afghan Telecom BASIC DATA:COUNTRY: AfghanistanNAME OF THE PROJECT: Afghanistan ICT Sector DevelopmentProjectSECTOR: Information Communication TechnologyCONTRACT TYPE: Individual Consultancy Contract-Time basedDURATION OF ASSIGNMENT : 06 monthsduty STATION : Admission, afghanistancontract REFERENCENO : MCIT / ICTDP / P121755 / IDA -H- 665 - AF / C- 1.16WORLD BANK GRANT NO: Ida- H -665 - AFPROJECT ID NO: P121755IMPLEMENTING AGENCY : Project Implementation and Coordination Unit ( PICU ) ofmcit 1) Background : the Ministry of Communications and Information Technology (MCIT), Islamic Republic of Afghanistan has received financing fromthe World Bank towards the cost of the ICT Sector Development Project and intends to apply part of the proceeds to hire a qualifiedIndividual as "Consultant to assist MCIT inFraming up Strategy for Privatization of Afghan Telecom".This Consultancy Support will be provided to the Deputy Minister-Technical of MCIT under the World Bankfunded Project of MCIT "Afghanistan ICT Sector Development Project". a) The aim of the ICT Sector Development Project of MCIT(as funded by the World Bank)is to expand broadband connectivity, mainstream use of mobile applications across theGovernment and develop the capacity of the IT sector to facilitate improved service delivery across Afghanistan while acceleratingjob creation andeconomic growth.
The project will do so by: (a) Creating the enabling environment and making strategicinvestments for the development of Afghanistan''''s backbone and broadband infrastructure; (b) Supportingthe mainstreaming of mobileapplications across Government by supporting innovations and creation of cross cutting enablers; and (c) Developing local ITinfrastructure and capacity in the public and private sectors. b) Project Development Objectives with their Output Indicators for each ProjectComponent of the World Bank funded ICT Sector Development Project ofMCIT are listed below: The PDO-level results indicators are as follows:OutputIndicator(s)Baseline (2010)Proposed targets (2016)
Impact of Consultancy SupportRevised ICT policy adopted by the Government of Islamic Republic ofAfghanistan2003telecom and Internet policy; 2003 ICT policyRevised policy adopted
Component 1: Expanding connectivity
Expanded reach and availability of telecommunications services and specificallybroadband Internet servicesAccess to internet services (number of subscribers per 100 people)310
Access to telephone services (number of subscriptions per 100people)5580
Length of fibre optic network built under the Project (km)01000
Component 2: Mainstreaming mobileapplications
Use of mobileapplications across Government for public services and program managementNumber ofGovernment agencies or programs using m-apps for public service delivery or programmanagement010
Improved capacity of Government to use IT strategicallyNumber of ministry CIOs and other officials trained under theProject0100
Component 3: IT industrydevelopment
Growth of local IT Individual Consultants and job creation in the IT based servicessectorNumber of people trained under the Project0 1500
2) Project Implementation Arrangements: a) The Project has a centralized management structure.
The Ministry of Communicationsand Information Technology (MCIT) is the implementing agency for the project. MCIT is implementing a numberof sectoral projectsfunded by the government and other development partners. To manage its portfolio of investment projects better, MCIT hasestablished a program implementation and coordination unit (PICU) that the Deputy Minister (Technical) of MCIT chairs. A Schematicof PICU is below:

b) Director of the Planning and Policy Department and Deputy Minister of IT are thecore members of the PICU.
The Finance and Procurement Directorates of MCIT provide support to the PICU. This is to ensure furtherstrengthening and sustainability of program management capacity that has been developed over the last few years within MCIT. Corefinancial management and procurement functions for the project are handled by the respective departments within MCIT
.A ProjectManagementOffice (PMO) supports MCIT in implementation of the IDA project. This PMO is part of the established PICU. 3) Brief on Rapid Growth of Telecommunications Sectorin Afghanistan: a) The Afghan Telecom Regulatory Authority (ATRA) was established in 2006 for issuanceof licenses, monitoring of quality of services provided by the licensees and taking measures towards developing the sector byencouraging private sector investments. Activities of ATRA are mainly basedon the Telecom policy developed and adopted by theMinister of Communications and IT on 03 July, 2003 with the vision to develop the Telecom and Internet sector in order to provideaffordable and quality services to the citizens of Afghanistan on a nationwide basis. b) In July 2003, two licenses for GSM Services (in 900 MHz) were issued to AfghanWireless Communications Company (AWCC) and Telecom Development Company Afghanistan (Roshan).Pursuant to the Policy, they wereprovided aduopoly on GSM Services until the end of 2005.Based on the fact that the three year term of the two original licenses wasabout to come to an end, on 21 May 2005, ATRA officially launched an international competitive tender for two additional licensesfor GSM Services (and any other services in the assigned 900 and 1800 MHz bands). As a result, two additional GSM licenses wereissued in May 2006, one to MTN and another to Etisalat. c) The former Telecommunication Department of the Ministry of Communications ofAfghanistan was taken out of the Ministry of Communications and became a government owned Telecommunications Company whichalsoreceived aUnified Services license from ATRA in 2005. It was named Afghan Telecom (AfTel). Aftel also inherited Fixed Line andFiber Optic networks. In addition, AfTel also provides Internet services through its fixed line facilities as well as through WiMAxfrequencies allocated to it byATRA. d) Since private entry into the Telecom market in 2003, the telecom sector inAfghanistan has grownat a remarkable rate and now approximately 18 million Afghanistan businesses, government entities andconsumers have mobile telephone service and over one million users have Internet service. And, the current installation of an AfTelFiber Optic ring throughout Afghanistan is connecting Afghanistan with the rest of the World at lower costs for voice and dataservices. Now, that the basic needs of thepeople in Afghanistan have been fulfilled, MCIT and ATRA have also issued 3G (ThirdGeneration) licenses to four(out of 5) existing mobile operators of Afghanistan. e) Afghan Telecom (AFTEL) is a Telecom Operator, 100 % owned by Ministry ofCommunications and IT (MCIT). It is a Government owned Corporation and planned to be privatized in due course of time. In 2006, Optical Fiber Cable Ring Project was funded by the Government from the Core Development Budget, to establish an OFC Ring of 3100Kms and again in 2010, another 500 Kms have been funded. AFTEL is the only Operator in Afghanistan currently permitted to own theOFC based Backbone of the Country.
The Company is selling Internet Bandwidth by bringing the same from neighboring Countries(Pakistan, Iran, Tajakistan and Uzbekistan) through OFC Backbone. Telecom Operators and ISPs are hiring the OFC based InternetCapacities and the Fiber Capacities from Afghan Telecom..f) Under the World Bank funded ICT Sector Development Project as approved in May, 2011, up to 27 Million USD will be spent to connect 05 Provinces and 13 Districts to the existing OFC Ring of Afghan Telecom.Within next 03 years, it is estimated that all the34 Provincial Capitals and many Districts will be served by the OFC basedBackbone Network. 4) Objectives of the Assignment " IndividualConsultant to assist MCIT in Framing up Strategy for Privatization of Afghan Telecom": Under the Project, a qualified Consultant will function to assist MCIT in Framing up Strategyfor Privatization of Afghan Telecom (AfTel). Based on the best internationalpractices for carrying out similar privatizationprocess, the Consultant will prepare a feasible Strategy for Privatization of Afghan Telecom. Specifically, the objectivesof the consultancy include the following: Prepare a baseline analysis of AfTel''''s current situation.
The analysis will be conducted froman internal perspective (legal, financial and operational) as well as external vis a vis the competitive dynamics taking place inthe Afghan telecom market and the wider industry trends and international best practices.Prepare an options study that identifies and evaluates options for potential privatizations ofAfTel and to position it for future growth and value creation.
The options will be evaluated across multiple dimensions including, financial, operational, legal and regulatory and according to various scenarios. A key element of the evaluation will besimulations of the potential fiscal impacts.Based on an evaluation and selection of the preferred option, prepare a strategic plan forAfTel that clearly establishes its vision, mission, objectives and the specific strategic initiatives (roadmap) and timelinerequired to achieve success.Based on direction of the MCIT, prepare the keyelements for the Request for Expression ofInterest, TOR and the RFP forPrivatization of Afghan Telecom and assist MCIT in evaluation of the received Proposals and in framingup a feasible Share Purchase Agreement. 5) Scope of Work: The consultant''''s workwill include the following tasks: Task-1-Preparation of aBaseline Analysis of AfTel''''s Current Situation: Under this task-1, the consultant will: Determine AfTel''''s current situation and summarize key findings specific toits:A- Legal and regulatory standing, including corporate entity andsubsidiaries, ownership and governance structures, licensing, authorizations and spectrum assignments (current and pending) andpending litigation and contingent liabilities (e.g wage and salary arrears, pension benefits, etc.);A- Financial position as reported by internal or external audited ormanagement reports, business plans and projections, including an assessment of the assets base and financial details of thebusiness lines of AfTel;A- Operational and technical assessment from the perspective of networkoperability, functionality and coverage, workforce, subscribers, service offerings, sales and marketing capabilities, etc.Assess AfTel''''s competitive position and opportunities relative to the trends and best practicesin Afghanistan and in the wider telecom industry, including benchmark analysis and comparisons;Prepare a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of AfTel accompanied byall supporting analysis;Calculatethe Share Values and to recommend aShare-holding Structure for facilitating the Privatization Process of Afghan Telecom. Task-2-Preparation of an Options Study that Identifies and Evaluates Options for Increased Private Participation and thePotential Privatization in AfTel for Future Growth and Value Creation: Under this task-2, the consultant will: Based on the SWOT analysis, identify options for transforming and positioning AfTel potentiallythrough privatization, taking into consideration prospective views of its legal, regulatory, financial, operational, and marketpositioning;A. To develop options, the consultant should analyze the best international practices used to privatize similar PublicSector Telecom Units and through a Consultative Process;Each option should be evaluated and supported by ahigh level financial and economic analysis ofAfTel and the telecom sector in general, identifying the human resources/capabilities, management, investment and financialresource requirements of transformed AfTel as well as fiscal impacts on theGovernment;Establish an options evaluation and selection methodology and select the preferred optiontaking into consideration various scenarios and key parameter sensitivities;Present the options study to the MCIT and other Government bodies in a workshop to generatediscussion, obtain feedback and consensus for the preferred option. Task-3-Preparation of aStrategic Plan for Af
Tel: Based on thepreferred optionprepare a 2-year strategic plan and roadmap for the chosen process.
The strategic plan should clearly establishAfTel''''s corporate vision and mission that will guide the privatization/transformation of AfTel. Detailed strategic initiatives(roadmap), including those internal to AfTel and those specific to the MCIT/Government, should be presented including anappropriate timeline and resource requirements (e.g. consulting, project management, etc.).
The AfTel Strategic Plan will bepresented in a second workshop to MCIT and Government representatives.
TheConsultant will also assist MCIT on the evaluation ofProposals and on framing up of a feasible SPA.
The Consultant shall also carry out any other tasks as given by DMT ofMCIT. 6) Deliverables, TimeSchedules and ReportingRequirements: a) The Consultant will submit the following Reports to His Excellency Deputy Minister-Technical ofMCIT:i) Report-1 on all the aspects of Task-1: To be submitted in 2nd Month after commencement of theassignment;ii) Report-2 on all the aspects of Task-2: To be submitted in 4th Month after commencement of theassignment;iii) Report-3on all the aspects of Task-3: To be submitted in 5th Month aftercommencement of the assignment;iv) Report-4 on the key elements for the Requestfor Expression of Interest, TOR, the RFP and the SPAfor Privatization of Afghan Telecom, to be submitted in 6thMonth aftercommencement ofthe assignment. b) The project language is English. However, the Consultant shall make provision that all the documentsrequested by the Client, including the monthly reports will be translated into Dari / Pashto. 7) Qualification Requirements: It is important that theConsultant has good knowledge of the Privatization Processes applicable to Public Sector Telecom Units and also should be familiarwith the government operations in Afghanistan.
The consultant should have the followingqualifications: A

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