WEST AFRICAN MONETARY INSTITUTE

INSTITUT MONETAIRE DE L'AFRIQUE DE L'OUEST

WAMZ PAYMENTS SYSTEM DEVELOPMENT PROJECT IN THE GAMBIA, GUINEA, LIBERIA AND SIERRA LEONEPROGRESS REPORT ACCRA, GHANANOVEMBER, 2013TABLE OF CONTENTS1.0Introduction

12.0Progress of Implementation by Component

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2.1RTGS/Scriptless Security Settlement Systems

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2.2Automated Clearing House/Automated Cheque Processing Systems

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2.3 Core Banking Application2

3.0Activities in the Beneficiary Countries

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3.1The Gambia..2

3.2Sierra Leone.3

3.3Guinea..3

3.4Liberia..3

4.0Major Challenges

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4.1 Financial Impact of Direct Payments Suspension by AfDB

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4.2 Counterpart Funding

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4.3Project Closing Date45.0Conclusions

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WAMZ PAYMENTS SYSTEM DEVELOPMENT PROJECT:PROGRESS REPORT FOR AS AT NOVEMBER 2013Introduction The WAMZ Payments System Development Project in The Gambia, Guinea, Liberia and Sierra Leone funded by African Development Bank (AfDB) with UA19m (about $30m) is drawing to a close with completion of the Project in The Gambia and Sierra Leone where all components have gone live and are running efficiently. Implementation in Guinea and Liberia are also at various stages of completion. The official launch of the Project in The Gambia and Sierra Leone is being organized by the National Central Banks (NCBs) in collaboration with West African Monetary Institute (WAMI) and AfDB. Guinea go-live is scheduled for End March, 2014 and Liberia End June 2014.

The main components of the project are: Real Time Gross Settlements System and Scriptless Securities Settlement Systems (RTGS/SSS) Automated Cheque Processing and Automated Clearing House (ACP/ACH) Systems Core Banking Application (CBA) Infrastructural UpgradeThis report would highlight the current status of the post go-live in The Gambia and Sierra Leone and implementation of the main Components in Guinea and Liberia to date. In addition, the progress of Infrastructural Upgrade in the two countries, challenges and the way forward is also discussed. The organization is as follows: Progress of implementation by components,

Infrastructural Upgrade in the Beneficiary Countries and challenges;

Outstanding Isuues; and

Conclusion2.0 Progress of Implementation by Components2.1 Real Time Gross Settlement (RTGS)/ Scriptless Securities Settlement (SSS) SystemsCMA Small Systems Limited (CMA), the Solution Provider for the RTGS and SSS systems component, has completed the implementation of the RTGS/SSS system in The Gambia and Sierra Leone and are operating without any major hitches since go-live in both countries. The initial teething problems with SWIFT connectivity have been resolved and transactions are being carried out smoothly with real time data replication at the Main and Disaster Recovery (DR) sites. The organization of the official launch of the Project and operational acceptance is still in progress.In Guinea, CMA has delivered and installed equipment to the Central Bank of Guinea (BCRG), while Liberia is under validation and ordering process. 2.2 Automated Clearing House/Automated Cheque Processing Systems (ACH/ACP)BFI, the Solution Provider for Automated Cheque Processing and Automated Clearing House (ACP/ACH) had completed the project in The Gambia and Sierra Leone and both components have recorded significant operational successes in both countries since going live in December 2011 and August 2013, respectively. The ACP System is used to process paper instruments (mainly cheques), while the ACH system clears electronic payments like cheque data captured from ACP system as well as electronic direct debits and credits. The aggregated ACH transactions are settled in the RTGS system. All these processes are done in real time through a seamless interface with other components. The post implementation support ended successfully in The Gambia and will end in November 2013 in Sierra Leone. The manual clearing window will continue in Sierra Leone until 31st October 2013 for non-MICR encoded cheques and this decision has been communicated to all commercial banks by BSL. The compilation of the Manual of Operation in line with the contract with the Solution Provider is ongoing and would be completed before the end of post implementation support in Sierra Leone in November 2013.

Additionally, in line with the contract signed with BFI, the five year warranty period commenced in December 2011 in The Gambia while it will commence in Sierra Leone by December 2013. BFI currently maintains staff in the Sierra Leone to provide post go-live support to BSL and remote support to The Gambia in line with signed Service Level Agreement (SLA). In Guinea, BFI has commenced training in the Central Bank of Guinea (BCRG) and has adjusted their implementation as follows:Guinea deployment ExpectedStart Date ExpectedEnd Date

Infrastructures delivery, reception and installation17/10/201313/12/2013

Training11/11/201313/12/2013

General pilot site and parallel Run06/01/201428/02/2014

Go-Live Guinea03/03/2014

3 months assistance03/03/201404/06/2014

In Liberia, BFI conducted a Project Kick-off and scoping in June 2013 and staff of the Central Bank of Liberia (CBL) completed offshore training in Tunisia during the months of August and September 2013.

2.3 Core Banking Application (CBA)Inlaks Computers Limited, the Solution Provider for the Core Banking Application, completed the project in The Gambia and Sierra Leone and it has been running successfully since January 2012 and June 2013, respectively. The system has operated successfully since implementation with seamless interfaces with the ACH/ACP, RTGS and SSS components since it went live. The CBG has also implemented and activated the Direct Credit Module for the direct payments of Government workers salaries and pensions since February, 2013. The one year warranty period has ended however and the five year hardware and software maintenance period has commenced. In Sierra Leone, the Temenos T24 Core Banking Application went live on the 3rd June 2013 at BSL and has been running efficiently. It hosts the current accounts of BSL customers such as Commercial Banks, Ministries, Departments, Agencies of Government and Special Projects, and also interfaces with all the components of the Project seamlessly. The three month post go-live support has also been completed. However, synchronization of the main and DR sites for real time data replication has not been completed because of the delay in the deployment of SWIFT infrastructure to the DR site by BSL. The Sierra Leonean authorities confirmed that the SWIFT equipment has been ordered and would be deployed as soon as the equipment arrives in Sierra Leone.

In Guinea, Inlaks has delivered and installed equipment and onshore and offshore training has commenced. The go-live date for Guinea has been re-scheduled for 24th February, 2014.

Inlaks would not resume implementation in Liberia until the completion of Infrastructural upgrade in the country and they are committed to implement Liberia in parallel with Guinea as soon as Liberian Infrastructural upgrade is completed. 3.0 Infrastructural Upgrade in the Beneficiary Countries and challenges

3.1 The GambiaThe Infrastructure Components in the Gambia have been operating without any setbacks since the Solution Providers handed over the systems to the CBG. SWIFT is currently being used as the messaging platform for T24 and RTGS/SSS transactions. In order to complete the failover solution, CBG contracted Allied Engineering Group (AEG) to install its SmartDR Product to enable SWIFT replication between the main and DR sites. The installation was successfully completed and CBG is waiting for Inlaks and CMA to configure their systems at the DR site in order to interface with SWIFT via the MQ Server Application.3.2 Sierra Leone The Infrastructural upgrade at the main and disaster recovery (DR) sites are completed with continuous availability of power and connectivity. The DR site was constructed with a capacity to host servers and a data centre that can accommodate up to thirty staff in the event of a disaster at the main site. All Solution Providers have mobilized their equipment to the DR site, however CMA and Inlaks are yet to install their workstations at the DR site. Switch over tests have been successfully completed by BFI and data replication to the DR site is on real time basis. 3.3GuineaDelivery and installation of all equipment for Lots 1, 2 and 3 for all sites in Guinea has been completed and the installation of the WIMAX link between the ETI SA and BCRG has also been completed. The Metropolitan Area Network (MAN) has been successfully tested between the BCRG and all Commercial Banks.3.4LiberiaThe Infrastructural upgrade was expected to have commenced with Lot 1 (Network Upgrade and Reconfiguration) and Lot 3 (IT Room and Energy Upgrade) in July 2013 after the kick-off meetings, it however did not commence as expected due to some misunderstanding of Project Scope between CBL and The contractor, Resourcery PLC. Resourcery however resumed implementation in October 2013 after the intervention of WAMI and the management of CBL. The following activities have subsequently been concluded by Resourcery: Pre-installation survey at the main and DR sites

Approval of Project Management Work plan

Sign-off of Project Scope and Deliverables

Delivery of all Cisco equipment CBL

Ordering of all Local and items coming from abroad.

CBL is currently remodeling the DR site to meet the Project Scope

Internet and MAN (Lot 2) contractor, Unique Solution has shipped the first batch of equipment to Liberia. Other equipment has been ordered and is expected to arrive by Mid November 2013.4.0 Revised Go-Live DatesThe following go-live dates were agreed during the fifth steering committee meeting for Guinea and Liberia.Guinea

S/NComponentGo-live datesRevised Go-Live Dates

1RTGS28th February, 2014End March, 2014

2SSS15th March, 2014Mid April, 2014

3ACP/ACH3rd February, 20143rd March 2014

4CBA27th January, 201424th February, 2014

5Infrastructure15th October, 201330th November, 2013

Liberia

S/NComponentGo-live datesRevised Go-Live Dates

1RTGSMid June 2014Mid June 2014

2SSSEnd June 2014End June 2014

3ACP/ACH27th June, 201427th June 2014

4CBA28th April, 201428th April 2014

5Infrastructure30th November, 201328th February, 2014

5.0 Major ChallengesThe delay in the engagement of contractors for the Infrastructural Upgrade in Liberia and the late resumption of implementation by the contractors poses a major challenge to the completion of the project in Liberia. The agreed completion date of 30th November, 2013 has been revised to 28th February 2014 with best efforts because of the current slow pace of implementation by the contractors. This may lead to a delay in the delivery and installation equipment by the major components solution providers and subsequent training and customization.6.0 ConclusionThe project implementation is progressing steadily after the resolution of some outstanding issues. The Gambia and Sierra Leone are in the process of the organization of the formal launch in conjunction with WAMI and AfDB while implementation is progressing in Guinea and Liberia.

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