Senegal - Year 2000 National Action Plan Support Project (Y2K)

Report No. PID8130 Project Name Senegal-Year 2000 National Action Plan... Support Project (Y2K) Region Africa Project ID SNPE67498 Sector Economic Management Borrower Government of Senegal Implementing Agency Ministry of Scientific Research and Technology Contact: Sada Wane, National Coordinator E-mail: sadawane@telecomplus.sn Date of PID preparation September 15, 1999 Project Appraisal Date September 3, 1999 Projected Board Date October 1999 Country and Sector Background 1. The last four years have witnessed steady progress in the implementation of economic reforms in Senegal. The Country Assistance Strategy puts considerable emphasis on macroeconomic stability, improved private sector environment, and alleviation of infrastructure bottlenecks. In this context, Senegal intends to implement policies to sustain strong, durable, diversified and balanced growth. In particular, the country will accelerate reforms in the water, transport, and energy sectors. The Y2K project is designed to ensure that the strategic sectors will avoid major disruption due to the Y2K bug that can (a) slow sustainable improvement of functioning in the strategic sectors and (b) impact private business sectors. 2. The Y2K problem stems from the fact that many computerized and digital systems could malfunction because of failure to properly determine the correct date as the century changes. Although the problem is technically simple, it poses a significant financial and management burden due to the resource-intensive nature of the process and the number of actors involved. In almost all economic activities (public and private), electronic or computer-based systems are used for processing and storing information. Failure or errors in processing that may not be identified immediately can provoke major malfunctions that may stop or deteriorate the functioning of major economic activities themselves. This is the case in Senegal where many activities cannot be maintained without the help of reliable electronic or computer-based systems. 3. On January 6, 1999, the Government of Senegal (GoS) established a National Y2K Steering Committee (Comite de Pilotage du projet "Passage du Senegal a l'An 2000") by decree of the Prime Minister. This Committee (CdP), chaired by the Minister of Scientific Research and Technology, was given the task of defining and implementing the National Y2K Strategic Plan. CdP is the regulatory, monitoring, and decision-making body on all Y2K matters. By the same decree, a National Y2K Coordination Committee (Comite de Coordination du project "Passage du Senegal a l'an 2000") was created to (a) coordinate the activities of six technical commissions (Public Sector and  Administration, Financial Sector, Small and Medium Enterprises, Industry; Strategic Activities, Health and Environment); (b) manage the Y2K Resource Center; and (c) set the agenda for CdP meetings. A commission in charge of security issues was also created and is chaired by the Ministry of Defense. 4. In addition to developing a national Y2K strategy and action plan, as well as national Y2K steering and coordination committees, the GoS has committed significant resources to identify and address potential problems in critical public administration systems and to monitor the situation in critical infrastructure operations. 5. The GoS has identified its key areas of Y2K risk exposure to be in government financial operations (revenue and expenditure; customs, and civil service pension system); public services (water treatment, port authority, or similar operations); private sector financial and industrial operations, security, and strategic infrastructure services (power, energy telecommunications, and transport). Remediation efforts in some of these areas--particularly in the Ministry of Finance, Customs, and privatized utilities--began during the past year or earlier. To initiate remediation programs and heighten the country's awareness of Y2K issues, Senegal received two World Bank Y2K infoDev grants (US$100,000 for planning and US$500,000 for implemention). Most departments are projecting Y2K compliance by December 1999. However, the Government requires an initial assessment of efforts to verify these claims and ongoing coordination to ensure that testing is properly accomplished. It also needs to ensure that both national and sector-specific contingency plans are prepared and tested before December 31, 1999. 6. Financial and human resource shortages in Senegal's Y2K program make the Bank's assistance necessary. Given the short time before January 2000, it is unrealistic to design a project that will cover all needs of all sectors in the economy. Therefore, the efforts are focused on those areas and priorities that are vital to the economy and are still non-Y2K compliant. 7. Project Objectives: The Year 2000 National Action Plan Support Project will assist the Government of Senegal in its efforts to prevent or minimize Year 2000 (Y2K) induced failures in its economic and financial revenue and expenditure systems, in customs, in health, and in critical infrastructures (such as telecommunications, electricity, transport, water, financial institutions and postal services). To this end, the project will assist GOS by (a) strengthening its national Y2K project management; (b) identifying and assisting in completion of urgent remediations in the most critical operations in the public sector; and (c) developing and testing national and strategic-sector contingency plans;; 8. Project Costs and Financing: The total project cost would be US$15.15 million, of which Bank financing would amount to US$10.15 million. In addition to the Government of Senegal's contribution of US$2.90 million, other donors (the French, Canadian Cooperation and an infoDev grant) and the GoS would help finance the costs associated with upgrades of public sector systems in the main administrative information centers (US$2.10 million). 9. Project Implementation: Under the direction of the Ministry of Scientific Research and Technology (the overall implementing agency for the project), a Project Management Unit (PMU) will be created and responsible for -2 -  (a) general supervision of the project, including its three components (Project Management Strengthening, Public Sector Remediation, and National and Sector-Specific Contingency Plans); (b) managing project activities that will be implemented by various agencies; (c) supervision of budget, procurement and disbursements, and work to be carried out by a contract and accounting management agency; (d) supervision of remediation actions carried out in public sector areas; (e) supervision and follow-up of contingency action plan development and implementation; (f) definition and implementation of a communication plan dedicated to Y2K readiness information; and (f) training for increasing awareness of stakeholders and the public in Y2K risks and Senegal's strategic areas readiness. 10. Project Sustainability: This project will strengthen key economic institutions and have a positive and ongoing impact on improvement of institutional functions, such as project management expertise and upgrading of information computer systems. Another durable and transferable skill from this project is the contingency and business continuity planning and remediation expertise that could be applied in all vital sectors of the economy as a way to ensure business continuity in case of catastrophe. This project will enhance the capacity of the government to manage its modernization process using advanced technology and implementing procedures and methods for monitoring large and complex projects, both present and future. In addition, the GoS will be in a better position to prepare and coordinate further computerization of all administrations through the information collected during Y2K inventory and assessment. Project activities will serve to increase the direct participation of beneficiaries, and a strong and reliable communication campaign to inform the public about Y2K issues will ensure that public perception is consistent with reality. 11. Lessons Learned from Past Operations in the Country/Sector: The Y2K problem is an issue that affects operations and systems in diverse countries and sectors. This is the first Y2K project for Senegal. In the context of World Bank operations, very few other countries have requested financing by the Bank to deal with Y2K issues, and these cases are very recent. Contact Point: The InfoShop The World Bank 1818 H Street NW. Washington DC. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500 Note: This is information on an evolving project. Certain activities and/or components may not be included in the final project. Processed by the InfoShop week ending September 17, 1999. - 3 -