DIGITAL TECHNOLOGY PARK
- Reference: P-SN-G00-001
- Approval date: 21/10/2015
- Start date: 04/04/2016
- Appraisal Date: 17/03/2015
- Status: OngoingOnGo
- Implementing Agency: MINISTERE DES POSTES ET TELECOMMUNICATIONS
12.1.Project Design and Components: The overall project comprises the following three components:
A) Construction and equipping of ICT services buildings: This component will comprise
(i) the building of three enterprise towers that will be used by local, regional and international ICT companies;
(ii) establishment of a Tier II Data Center with cloud computing services;
(iii) building a BPO center that facilitates the location of call center and IT enabled services businesses; and
(iv) construction of a training center, a research center and an incubation center along with an audio visual and content production building that will be used for multimedia production. B). Construction and equipping of public buildings and facilities: This component will establish
(i) a commercial center that accommodates a super market, medical, sport and recreational outlets, food court and security services. The building will include an administrative block for those managing the park. The public building will also comprise a residence building for students and core staff. The facilities will include a green area for recreation and interaction. C). Project management and capacity building: This component will provide the necessary resources to:
(i) strengthen the capacity of stakeholders in the implementation of the digital technology park project
(ii) strengthen the operational and technical capacity of a project management Team (PMT);
(iii) conduct detailed architectural design; and supervision of works. The implementation of this component will take into account the gender dimension.
The development objective of the project is to contribute to the economic growth of Senegal by supporting the ICT industry.
11.2 The specific objective of the project is to:
(i) establish Senegal as a hub for ICT sector investment and Business Process Outsourcing
(ii) facilitate the creation of information economy jobs
(iii) advance ICT innovation and applications that contribute to social and economic development in Senegal, Africa and beyond.
1 PRSP, CSP and RISP Priorities: Key development Issue(s) project is aiming to address: The Digital Technology Park (DTP) project is aligned with the development strategy laid down in the Plan Senegal Emergent from 2014 - 2035. The project falls under Pillar I of the Country Strategy Paper (CSP) 2010-2015 Mid Term Review. Pillar I aims to provide support for inclusive growth through diversification and economic integration. The Pillar focuses on job creation that will have direct impact on women and young people and the improvement of the business climate for private investment and economic diversification. The Digital Technology Park will improve the contribution of the ICT sector to the economy and foster youth employment, gender equality and foreign direct investment. The project aligns with the Regional Integration Strategy Paper (2011 -2015) for West Africa, in particular with Pillar I that focuses on the investment in regional infrastructure. The DTP will provide services that will encourage the development of ICT in the Economic Community for West Africa (ECOWAS) region. The proposed project objectives are also in line with the Bank's Long Term Strategy' (2013 - 2022) themes on infrastructure development, wealth and job creation and private sector development.
9.2 The government of Senegal has adopted policy and regulatory measures to spur the development of the ICT sector. The national ICT Strategy encourages the creation of enabling environment for investment and universal access to ICTs by all people. The other objectives of the ICT Strategy are harnessing ICTs in the delivery of health and other public services, enhancing the capacities of small and medium enterprises, creation of content, and building human resources for knowledge society.
9.3 The Digital Technology Park will be a key project for the prospective growth of Senegal and its competitiveness at the global levels. Senegal needs a faster ICT driven growth to attain its ambitions to become a middle- income country by the next decade. The development strategy laid down in the Plan Senegal Emergent (PSE) for the period 2014 to 2035 is based on growth 5% on annual basis, thus the construction of the digital technology park will contribute to its success.
9.4 The Technology Park project is one of the 37 flagship projects of the PSE. The park that falls within the "business park" project of the PSE envisages to create 35,000 jobs in the ICT sector and attract multinationals and companies to relocate their activities to the new urban center developing around Diamniadio Diass, Sebikotane and Lake Rose. There is also an ambitious plan for increasing the contribution of ICT to the economy from 6% to 15% by 2022.
X. Rationale for Bank involvement:
10.1 The Bank has financed a number of ICT projects at national and multinational levels such as the Cabo Verde Technology Park, Regional ICT centres of excellence in Mali and Rwanda respectively. It has also supported Main One and EASSY submarine cable projects, which have started yielding development results including triggering bandwidth increases in the markets they serve, which in turn has resulted in slashing Internet prices. This experience gives the Bank a comparative advantage in Africa.
10.2 The project aligns with the Bank's ICT strategy and the Private Sector Development strategy. It also addresses the key bottlenecks that was identified in the Senegal country support strategy, in particular the challenges of "poor business opportunities and inadequate access to financing " and low level of job opportunities for the youth. The proposed project is expected to create 15,000 direct jobs and over 30 ,000 indirect jobs in housing, food, transport, and consumer goods, telecommunications, building rentals, water, and other core services to the clients by 2022. It will also host an incubation center that will help start-ups to develop their business skills and management efficiencies and attract multinational companies to invest in promoting ideas. The indirect economic benefits of the technology park will include improved status of Senegal as an ICT investment destination, increased growth of the ICT sector that will have spillover effect in the design of applications and services for government.
10.3 The project will leverage other infrastructures that were financed by the Bank and other partners including the Dakar-Diamniadio tall road and the new Blaise Diagne International Airport.
Gender equality: The project is expected to enhance gender related development issues. Experience of technology parks shows that women are the main beneficiaries of the BPO industries and the proportion of female workers in the IT enabled services business is often higher than male. The growing participation of women in the IT field in Senegal also implies that women will be the major beneficiaries from the project. The digital city is also expected to create direct jobs and indirect jobs of which over half will be the women.
Climate Change: To the most outstanding events in Senegal on the phenomenon of climate change are among others: coastal erosion and flooding. The advance of the sea and the destruction of much of the infrastructure on the coast manifest the coastal erosion. Flood occurs at the outlying districts often devoid of wastewater. The digital city project will be not implemented on the coast and it is not exposed to the risk of coastal erosion. However Diamniadio where limestone marl soil is susceptible to the risk of flooding. Thus there is a need for the establishment of wastewater systems to compensate for the risk of flooding.
The project itself will also contribute indirectly to climate change mitigation; given its potential to facilitate the automation of various business process and as such yield efficiencies in traditional energy consumption and transportation behaviors. It solutions that will be developed at the digital technology park will have significant environmental components.
Social Impacts: The project will have a considerable impact on job creation and advancing the country towards an information society, which will have an overall impact on the quality of life of Senegalese citizens. The technology park will serve as a platform for software and IT solutions that will directly impact on sectors like health, education and agriculture, as well as services like finance that will lead to improved development.
The project will also enhance the delivery of e-government through creative solutions at the digital technology park that will improve public services. The technology park will also work closely with the communities and research institutions to test solutions that will directly improve the social wellbeing of communities in the areas of health, judicial process, education, agriculture, trade and others all of which will have positive implications on poverty reduction. It should also be noted that some of the ICT solutions that will be developed in Senegal would be used across the African region, thus contributing to the overall social welfare of the region.
The project will also increase the flow of knowledge and entrepreneurship and interaction between Senegalese at home and abroad, thus improving wealth creation. It will contribute to entrepreneurship and vocational training especially in the ICT industry. The incubation centre will allow graduates to establish IT start ups in various areas including mobile applications, social media, web solutions, network security, cloud solution, BPO, e-government solutions, etc. This will have overall impact on the development of the sector and wealth creation
JACK Salieu - PITD3