Feasibility Study for Building Disaster Recovery Site (DRS) at Jessore Software Technology Park (JSTP) Inception Report

Transcription

1 Feasibility Study for Building Disaster Recovery Site (DRS) at Jessore Software Technology Park (JSTP) Inception Report 30th August 2015

2 Table of Contents Table of Contents 1. Acknowledgement 4 2. Executive Summary 5 3. Scope of the Engagement Project Scope Overview of the Scope of Work 7 4. Approach & Methodology Overall Approach and Methodology Understanding of Assignment Project Deliverables & Timeline Project Assumptions & Dependencies Project Plan & Resource Deployment Project Plan Team Deployment Schedule Month wise Team Deployment Schedule Project Organization Structure Project Organization Structure Steering Committee Project Governance & Communication Plan Governance/Communication Plan Issue Escalation Matrix Acceptance and Sign off Plan Appendix Minutes of Meeting & Key Notes Templates Annexures 34 Glossary 43 PwC 2

3 Table of Contents Document Control Change Record Date Revision Author Change Reference 23 rd August 2015 V th August 2015 V th August 2015 V 3.0 D. Aditya Prasad Jena D. Aditya Prasad Jena D. Aditya Prasad Jena Initial Version Comments incorporated Final review comments incorporated Reviewers Date Name Role 24 th August 2015 Ashis Sanyal Team Leader 30 th August 2015 Amulya Patnaik Partner Distribution Date Name Role 30 th August 2015 Ashis Sanyal Team Leader Approval by BCC On Behalf of BCC On Behalf of PwC Name Name Signed Signed Date Date PwC 3

4 Acknowledgement 1. Acknowledgement We would like to take this opportunity to thank Bangladesh Computer Council (BCC) and World Bank for providing us the opportunity to conduct this detailed exercise of Feasibility Study for the Disaster Recovery Site at Jessore STP. The PwC team would also like to place on record its appreciation and heartfelt thanks to Mr. Rezaul Karim (Project Director, BCC), Mr. Tarique M Barkatullah (Deputy Project Director, BCC), Mr. Md. Jahangir Alam (Project Director, Hitech Park Project), Mr. Farhad Hussain (Technical Specialist (World Bank), BCC) and all the senior officers and functionaries, who have so far helped the team by sharing their views, opinions, and inputs during the course of preparation of this Inception Report. In this regard, the team also acknowledges the support and cooperation provided by Mr. Md. Fayekuzzaman, Managing Director, Investment Corporation of Bangladesh (ICB) and other officials of ICB. PwC team would also like to convey deep sense of gratitude and appreciation to the entire team of BCC & World Bank, for all the patience in addressing the queries submitted to them during drafting of this Inception Report. Serious apologies are submitted in advance in case any name has been missed out. PwC 4

5 Executive Summary 2. Executive Summary The Information and Communication Technology Division, Ministry of Post, Telecommunication and Information Technology and Investment Corporation of Bangladesh (ICB), along with the State owned Commercial Banks and financial institutions of Bangladesh, have agreed in principle for joint collaboration to build a Disaster Recovery Site (DRS) at Jessore Software Technology Park (JSTP), Jessore. Building DRS at JSTP Project is an important initiative with massive significance for the People s Republic of Bangladesh. It is also envisaged that the DR Site at Jessore to play an effective role in terms of tapping the growing Data Center (DC) /DRS business needs in the neighbouring countries, especially that of eastern India (due to proximity and availability of terrestrial lines from there), other parts of India and South-East Asia. The primary objective of the project is to build a state-of the art Disaster Recovery Site (DRS) in Bangladesh, to facilitate business continuity and disaster recovery for ICB, Commercial banks, financial institutions and other government and private institutions at home and abroad, In addition, this data center is envisaged to provide collocation and hosting facility to other firms. Further, to operate this DRS, it is planned to establish a technologically and financially viable and sustainable independent commercial company, to be registered with the Registrar of Joint Stock Companies and Firms of Bangladesh. The DRS would be an IT-servicing hub, not only for the financial sector but also for manufacturing, Information Technology and Bio-Technology sectors. As a part of project schedule, PwC takes pleasure in submitting this Inception Report. This report forms the first deliverable of the project Feasibility Study for Building DRS at JSTP assigned to PwC. Objective of the Inception Report is to clearly spell out the following: Objective and Scope of Work, indicating the overall objective of the project and the scope of work based on the discussions and consultations with the stakeholders Approach and methodology, summarizing the consultants approach and methodology that would be adopted for this engagement Overview of the inception phase, including the discussions held during inception meeting and interactions took place at ICB, on key priorities, concerns and the key findings from the study during the inception phase Work plan detailing the activities and timelines for delivery of the project and the support required from BCC Identified Assumptions and Dependencies related to the project In this report, also covered are the PwC perspective on the Feasibility Study, overview of methodologies and framework to be utilized during the project, project governance structure and communication plan, assumptions and exclusions, few sample templates to be utilized to form deliverables/ reports. PwC 5

6 Scope of the Engagement 3. Scope of the Engagement 3.1. Project Scope At broad level, the scope of this assignment is summarized as below: 1 2 Preparation of Technical Feasibility Report A. Project Kick-off and plan finalization B. AS-IS Assessment, Risk identification and mitigation planning C. Data Center Designing and Capacity estimation D. Data Center Bill of Material ( BoM) preparation and Cost estimation for Non IT, IT and all other componenets including Operations Defining Vision Mission Objectives (VMO) and Market Assessment ( Business Plan) A. Defining Mission, Vision Statements and High Level Strategic Objectives B. Conducting Market Assessment and Segmentation Analysis C. Developing ICT based Operational Modalities D. Formulating the Business Plan E. Defining Organization structure and manpower requirement including training need analysis F. Master Project Schedule 3 Preparation of Financial Feasibility Report A. Detailed Financial feasibility analysis B. Component wise cost and revenue estimation including sugggested implementation plan C. Financial analysis D. Identification of Risk Management, Control and Compliance procedures PwC 6

7 Scope of the Engagement 3.2. Overview of the Scope of Work Detailed scope of work is mentioned in the Request for Proposals (RFP) published by BCC. A brief description of few tracks in the PwC approach is as follows: Preparation of Technical Feasibility Report The activities in this track would lay the foundation on which all subsequent activities of the project would depend. To carry out the feasibility study it is important to understand and analyze the technical and physical requirements of the DRS location. A correct identification of the location capabilities would enable an accurate assessment of what is needed to meet the objective of building state of art disaster recovery site at the location. Preparation of Financial Feasibility Report & Business Plan The key to any successful business is the robust planning process that happens at the start of the venture. A key requirement of this stage is to ensure that the PwC team has a good understanding of ambitions, plans, expectations, vision, inhibitions that BCC has for the proposed DRS Company. After developing such an understanding the focus would be on transforming this understanding in association with prior experience and expertise of PwC into an actionable business plan. To achieve this extensive knowledge of larger PwC teams, who have worked with the Government and Public Sector on previous business planning and strategy formulation assignments, as well as of other team members, who have expertise in the development of corporate and IT strategy, would be utilized. For the market analysis, a market assessment framework, as depicted below, would be utilised: PwC 7

8 Scope of the Engagement Our purpose for this step is to undertake an analysis of the implications of the current situation on the delivery of our desired future state/vision, clearly articulating key priorities which define the opportunities to capitalize on and which threats to tackle, considering the market and competitor analysis. PwC would deploy its expertise in the area of market assessment and secondary research to undertake following key activities of this stage: Study of existing local market, market size, potential, customers, competition, if any, through discussions and secondary research. Obtain DR Services market overview Conduct Secondary research through: o Annual Reports o Industry analyst Reports o PwC Research Databases Develop list of interview participants Conduct Demand-Side assessment/ validation Conduct Supply-Side assessment/ validation Macro-factors/ PESTLE analysis Develop Interview questionnaires Conduct Preliminary risk assessment Conduct Discussions & Research: Validation of market assessment output through discussions with key vendors Obtain Market Insights Undertaking international benchmarking study to understand the operational and management structure, profitability, margins, key drivers, market analysis, trends etc. in regard to DRS market Presenting the findings of market and segmentation analysis and strategies to BCC. PwC 8

9 Approach & Methodology 4. Approach & Methodology 4.1. Overall Approach and Methodology PwC considers that an overall consultative/ participatory approach involving the key partners for such an assignment is essential for success. Therefore, post contracting the inception phase was initiated with the Kick-Off meeting (10 th August 2015) and meeting with ICB (13 th August 2015), with the aim of bringing in common and shared understanding of the objectives and goals of the engagement among the stakeholders of the project. From PwC s experience of working with other Government and Non-Government entities, it is believed that a number of issues can be clarified during this exercise when the target audience comes to a consensus on the priorities and objectives of the project. Conforming to this idea consultation sessions and discussions were held with the representatives of BCC and ICB, to understand the underlying issues, challenges and the overall purpose of the assignment. Few more sessions are also planned in this regard. PwC considers that the approach and methodology proposed and discussed with BCC was intended to capture the key aspects of the assignment. The team also believes a flexible, need based and consultative approach in undertaking the assignment. The overall approach comprises of the key components of the review, revision and its implementation. While the objectives and scope of work is laid out in the Term of Reference (ToR) published along with the RFP, the overall understanding has been translated into a phased methodology to achieve the desired outcome and deliverable, which is outlined below. Key area Project Planning Project Organization Project Implementation Project Team Success factors Project goals or objectives are clearly defined Drivers and constraints are identified and addressed Deliverable requirements are specified in sufficient detail Resources are sufficient to achieve the objectives Planning and control mechanisms are appropriate to the scale of the project Project has the support of top management and other key stakeholders Effective communication channels with stakeholders are created Feedback from client is promoted and acted upon Project methodology is appropriate and practical Change management issues are addressed Quality assurance mechanisms are effective Project management is competent Project team has required skills Project team is cohesive and motivated Based on the understanding of the key components for the support and the scope of required services of the assignment through stakeholder consultation, the assignment is further segmented as illustrated below: PwC 9

10 Approach & Methodology Assess Design Deliverable PwC 10

11 Approach & Methodology While the importance and long term impact of the program is appreciated, there are certain risks and challenges in implementation of such initiative, which are summarized below along with the mitigation approach: Possible Risk & Challenges Mitigation Approach Despite the identified risks and challenges, we clearly understand the benefits to be accrued out of such initiative. Some of the same are briefed below: Need of the hour: Disaster Recovery site is need of the day, since data has become ubiquitously important primarily for all kind of services and applications. Cost of losing the data as compared to setting up of a provision for data availability cannot be undermining. In addition, looking at the availability of resources and services on a click and always online with cloud computing and other facilities, downtime is again a challenge which departments would want to mitigate. It is in this context, a Disaster Recovery Site would be of prime importance. Centralized availability of resources: Rather than creating siloed and independent, dedicated disaster recovery sites departments and entities would always prefer to have a site readily available acting as a DR site for their applications. Optimum usage of power and cooling: Resources like Power, Cooling and Space are always considered to be of prime importance and one of the costliest components while establishment of a Data Centre/ Disaster Recovery facility. Centralized availability of IT and Non-IT Infrastructure leads to optimal usage of resources. Centrally defined processes: Operations for running the Data Centre / Disaster Recovery services are key for its successful usage in case of any eventual failure for the applications or any other components. Optimal usage of skilled manpower: Skilled and technical manpower is again a scare resource and hence creation of a Disaster Recovery Site acting as a central location for many entities would lead to optimal usage of manpower. PwC 11

12 Approach & Methodology Entities, banks, depts. would be able to focus on their key operations only rather than setting up DR/DC facility Understanding of Assignment PwC understands that BCC requires an advisor with global footprint, regional experience and sufficient experience providing advisory services on Data Centre / Disaster Recovery design and implementation, Operations Management and setting up of a commercial entity including the legal affairs, financial and business planning. In order to cross-leverage the rich experience in providing advisory services in the Government domain, PwC India shall leverage on the local strengths in this project. The key components for the support and the scope of required services, as understood by PwC, are outlined in the figure below. PwC 12

13 Approach & Methodology 4.3. Project Deliverables & Timeline S. No Deliverables Elapsed time from Execution of Agreement (EoA)* 1. Submission of Inception Report 1 month from the date of EoA 2. Submission of Technical Feasibility Report 3 months from the date of EoA 3. Submission of Financial Feasibility Report 4 months from the date of EoA 4. Submission of Business Plan Report 5 months from the date of EoA 5. Submission of Draft Report 5.5 months from the date of EoA 6. Submission of Final Report 6 months from the date of EoA *Execution of Agreement (EoA): 29 th of July, The detailed activity wise timeline has been maintained in the Project Plan (refer below) 4.4. Project Assumptions & Dependencies 1. This being a greenfield project with limited past information, the Return on Investment (ROI) exercise will be carried out by also taking into account the social benefits attained by the system. 2. As consultant, PwC will limit itself from recommending specific technology; however PwC will mention detailed functional requirements of all the solution components. Technology options will be described at architecture level and it will be on the implementation vendor to suggest the best suited technology for envisaged functionalities. 3. PwC s effort estimation Project Plan and Schedule are based on a 5 working day week and 22 working days per month as per the Gregorian calendar. Any unscheduled stoppage of work due to civil disturbances or loss of working days or any other standard force majeure events would not be taken into consideration for while tracking progress against the agreed Project Plan. 4. The Steering Committee will have the authority necessary to make quick decisions, eliminate barriers, and to endorse PwC s recommendations and outputs. 5. The language of deliverables will be the English language. 6. All information disclosed or to be disclosed to PwC is or will be true, accurate and not misleading in any material respect. PwC will rely on and not verify the accuracy and completeness of such information and materials. 7. The staff deployment plan represents PwC s best efforts to accurately respond to BCC requirements based on the information provided in the Terms of Reference. PwC 13

14 Approach & Methodology 8. Existing site Plan including Environmental Impact Analysis (EIA) report for the site, if any need to be provided by BCC. 9. Project Appraisal Document (PAD), if any, submitted to World Bank for this project, is required to be provided by BCC. 10. Facilitation for meetings with stakeholders for the Inception report workshop, to present prefeasibility assessment for the DC/ DRS, is required to be done. 11. Meeting with stakeholders for demand assessment for DC / DR services is to be arranged by BCC, inputs shall be provided by PwC. PwC 14

15 Project Plan & Resource Deployment 5. Project Plan & Resource Deployment 5.1. Project Plan No D-1 D-2 D-3 D-4 D-5 D-6 Deliverable Inception Report Technical Feasibility Report Financial Feasibility Report Business Plan Report Draft Report Final Report Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 PwC 15

16 Project Plan & Resource Deployment # 5.2. Team Deployment Schedule Name of Personnel Deployment Schedule (in person months) (On the basis of the project schedule, team members would be providing inputs in their respective areas) Role Assigned Inceptio n Report (D1) Technic al Feasibili ty Report (D2) Financia l Feasibili ty Report (D3) Busines s Plan Report (D4) Draft & Final Report (D5 &D6) 1. Ashish Sanyal Team Leader Prashant S Ramdrugkar/ Raghuveer Prasad* Total Technical Expert Dr Feroz I Faruque Economist Mohammad Mohinuddin Ahmed Civil Engineering Subhrangshu Gupta Architect Ripan Kumar Saha Anindya Sengupta/Gaurav Chabra* Abhinav Mangla/ Manas Goswami* Environmental Expert Security Expert Financial Analyst Arjuman Lutfa Training Expert Partha Pattanayak/ Sameer Surinder Gandotra* 11. Varun Srivastava 12. Pawan Jain HRM Expert Technical Expert - Policy & Processes for DRS Technical Expert - IT Infra Ankur Mehra Legal Expert Aditya Jena^ 15. Shyamal Bhattacharya 16. Azizur Rahman^ HRM and Financial Analyst SME - DR Design Deputy Team Leader Feroz Ahmed^ Financial Expert Bob Landstorm Advisor Rakesh Kaul/ Amulya Patnaik Engagement Partner Total 72.0 * & ^: Deployment of Additional/ alternate suitable profiles are subject to approval by BCC PwC 16

17 Project Plan & Resource Deployment 5.3. Month wise Team Deployment Schedule No Name Expert's input (in person/month) Total time input (in Months) Position w1 w2 w3 w4 w5 w6 w7 w8 w9 w1 0 w11 w12 w13 w14 w1 5 w16 w17 w18 w19 w20 w21 w22 w23 w24 Home Field Total Key Experts Home K-1 Ashish Sanyal Team Leader 6 Field Prashant S Home K-2 Ramdrugkar/ Technical Expert 6.00 Raghuveer Prasad Field Home 0.00 K-3 Dr Feroz I Faruque Economist 6.00 Field K-4 Mohammad Mohinuddin Ahmed Home 0.00 Civil Engineering 3.00 Field Home K-5 Subhrangshu Gupta Architect 3.00 Field Non - Key Experts N-1 Ripan Kumar Saha Enviornmental Expert Home 0 3 Field N-2 N-3 Anindya Home Sengupta/Gaurav Security Expert 4.00 Field Chabra* Avinav Mangla/ Home 0 Financial Analyst 3 Manas Goswami* Field N-5 Home 0 Arjuman Lutfa Training Expert N-4 6 Field Partha Pattanayak/ Sameer Gandotra* N-6 Varun Srivastava Home HRM Expert 4 Field Technical Expert - Policy & Processes for DRS Home Field Home N-7 Pawan Jain Technical Expert - IT Infra 3 Field Home N-8 Ankur Mehra Legal Expert 2 Field N-9 Aditya Jena^ Advisory Panel and Subject Matter Expert Home Field Home N-10 Shyamal Bhattacharya SME - DR Design 5 Field Home N-11 Azizur Rahman^ Deputy Team Leader 3.5 Field Home 0 N-12 Feroz Ahmed^ Financial Expert 1.5 Field Home N-13 Bob Landstorm Advisor 2 Field N-14 Rakesh Kaul/ Amulya Patnaik HRM and Financial Analyst Home Engagement Partner 2 Field Sub-Total Total PwC 17

18 Project Organization Structure 6. Project Organization Structure Project governance is the critical factor for project success to measure any roadblocks and ensure every stakeholder is getting the right support to accomplish the task assigned. Any successful program anchors on the governance framework built to support the initiative. More complex the program, more critical is the role played by the governance structure and the bodies which constitute it. The guiding principle defining the governance framework is simplicity in enablement while agile in execution. Each component in this model is relevant and works cohesively to enable others in meeting the engagement objective The embodiment of this governance structure with the right teams consisting of the relevant expertise, skills and experience goes a long way in ensuring the success of the engagement Project Organization Structure The project organization structure and description of roles and responsibilities are given below: 6.2. Steering Committee PwC proposes a Steering Committee (SCOM), the names of the members from BCC are suggested below which may be finalised by BCC. Name Designation Mr. Rezaul Karim PD, BCC [email protected] Mr. Tarique M Barkatullah DPD, BCC [email protected] Mr. Md. Jahangir Alam PD, Hiteck Park Project [email protected] Mr. Farhad Hussain Technical Specialist (World Bank), BCC [email protected] PWC SCOM Members names: Name Designation Rakesh Kaul Signing Partner [email protected] Amulya Patnaik Engagement Partner [email protected] Ashis Sanyal Team Leader [email protected] [email protected] Azizur Rahman Deputy Team Leader [email protected] The key responsibility of the Steering Committee (SCOM) is given below: PwC 18

19 Project Organization Structure 1. Providing overall guidance and strategy to the project in terms of its direction, objectives and progress. 2. Review of project progress and key milestones. 3. Ensuring timely feedback from project committee on the deliverables submitted by PwC before PwC proceeds on to the next designated stage of the Project. 4. Review and approval of any revision of Scope, Deliverables, Time schedules. 5. Approving payments on PwC invoices. 6. Resolution of other high level issues affecting the project progress. PwC 19

20 Project Governance & Communication Plan 7. Project Governance & Communication Plan 7.1. Governance/Communication Plan PwC is a proposing a structured communication/ review channel that will help BCC to have more visibility and management over the project. This review process will add value to the project in terms of proper issue management, getting right data/information on right time and quality of output. Below is the detail of governance mechanism that PwC team would submit during the course of project: S. No Meeting/ Name of Report Objective Frequency Audience 1. Monthly Progress Report To track the status of project and resolve project issues, if any Monthly Team Leader Project Core Team Steering Committee 2. Project Status Review Project progress status and update 3. Issue Escalation As per requirement Fortnightly Steering Committee Team Leader Steering Committee 7.2. Issue Escalation Matrix Escalation Level PWC BCC Level 1 Team Leader Technical Specialist (World Bank) Level 2 Engagement Partner PD/DPD, BCC Level 3 Steering Committee Steering Committee PwC 20

21 Project Governance & Communication Plan 7.3. Acceptance and Sign off Plan S. No Deliverable Acceptance Sign off to be provided by 1 Inception Report PD, Leveraging ICT (LICT) 2 Technical Feasibility Report PD, LICT 3. Financial Feasibility Report PD, LICT 4. Business Plan Report PD, LICT 5. Draft Report PD, LICT 6. Final Report PD, LICT *Note: BCC is requested to provide feedback / approval on the project deliverables submitted by PwC within 10 days of receiving the same PwC 21

22 Appendix 8. Appendix 8.1. Minutes of Meeting & Key Notes MoM 1 Kick off Meeting Date: 10/08/2015 Venue: BCC Office, 1st Floor, Conference Hall Attendees: Sl. # Name Designation/ Organization Present 1. Mr. S M Ashraful Executive Director, BCC Yes Islam 2. Mr. Rezaul Karim Project Director, BCC Yes 3. Mr. Tarique M Deputy Project Director, BCC Yes Barkatullah 4. Mr. Md. Jahangir Project Director, Hitech Park Project Yes Alam 5. Other Senior BCC Yes Officers from BCC 6. Representative from Investment Corporation of Bangladesh (ICB) Yes ICB 7. Mr. Azizur Rahman Director, PwC Yes 8. Mr. Ashis Sanyal Team Leader, PwC Yes 9. Mr. Shyamal Member, PwC Team Yes Bhattacharya 10. Mr. D. Aditya Prasad Member, PwC Team Yes Jena 11. Mr. Arup Das PwC Yes 12. Mr. Manas Goswami PwC Yes 13. Mr. Subhrangshu Member, PwC Team Yes Gupta 14. Dr. Feroz Faruque Member, PwC Team Yes 15. Mr. Md. Mohinuddin Ahmed 16. Mrs. Arjumand Lutfa 17. Mr. Ripon Kumar Saha Member, PwC Team Member, PwC Team Member, PwC Team Yes Yes Yes PwC 22

23 Appendix Agenda: S. No. Discussion Item Description 1. Project Kick-Off Presentation: To discuss the scope of work, project team composition, work schedule as well as identify the key points of contact for the Feasibility Study for Building Disaster Recovery Site (DRS) at Jessore Software Technology Park (JSTP) Project i. PwC team gave a presentation on the project about the salient points of understanding and some of the important aspects of the DC/DRS site selection and technical design ii. Prioritize the work areas for the assignment based on key imperatives of the BCC Meeting Notes: 1. PwC should explore if the envisaged DR Site at Jessore could play an effective role in terms of tapping the growing DC/DRS business needs in the neighbouring countries, especially that of Kolkata (due to proximity and availability of terrestrial lines from there) and other parts of India and South-East Asia. 2. BCC intends to create multi-client/multi-tenant DC/DRS. For that BCC is planning to shortly hold interactions with National/Commercial government and private banks and FIs (caging/collocation services) and also Telecom Service Providers (TSPs) in Dhaka. 3. In the forthcoming years it is planned to invest significantly on ICT. The planned DRS would meet the requirements for disaster recovery for all the DCs in Dhaka and elsewhere as the identified site in Jessore is seismic quieter zone than other places in Bangladesh. 4. It is intended to get a Uptime Institute certification for the planned DC/DRS facility. Mr Barkatullah informed that a first level meeting with the representative from Uptime Institute happened last week with the Executive Director, BCC. He suggested that PwC team may line up further interactions with Uptime Institute to ascertain suitability of identified site for Uptime Certification. 5. PwC team informed that a preliminary site visit would take place on Aug 11 th by a team of senior architect, civil engineer and DC expert, to have a preliminary assessment of the suitability of the proposed site. Mr Barkatullah requested that site suitability recommendations may be provided in writing, so that appropriate decisions can be taken by BCC on the PwC recommendations. 6. In the above context the following information on the site was made available to PwC team: i) One barricaded Power Station exists near the site. ii) iii) iv) It is expected that within a year two separate power grids would come at the JSTP site. Terrestrial communication links from Kolkata are available near the site. Passport department has its office nearby. PwC 23

24 Appendix v) Parking area is separated from the main MTB building. vi) Some seismic data is taken by BCC from the Ministry of Environment, Government of Bangladesh. 7. PwC team suggested that there should be an effective e-waste policy, which would be relevant not only for the DC/DRS to abide by, but also for all incumbent companies in the JSTP. 8. PwC team informed BCC that JSTP Fibre facility and the P0wer Station would be required to provide redundant fibre routing and power feeders to the DRS that would be the part of the facility design. 9. BCC reiterated that the feasibility design should be carried out keeping the focus on a creating a Global Data Center complying all requirements of a Tier III DC including certification complying both TIA 942 and Uptime Institute. 10. ED BCC opined that capacity building is very important for Bangladesh while entering into Digital Bangladesh regime and this aspect should be critically addressed in the feasibility study. He further mentioned that the proposed DC/DRS facility should be operated in financially and operationally sustainable mode as prior experience suggested that government subsidiaries in Bangladesh always incurred huge losses and ultimately the project objectives were never met. He pointed out that keeping this view it was decided that a separate company would be formed for operation of the DC/DRS and it would operate independently without any government interference. Action Points: Sl. No. Action Item Entity Responsible 1 The MoM would be circulated to all the attendees in the kickoff presentation PwC Details Pertaining to the Action Item Circulated through on 17 th August,2015 Status Complete 2. PwC to visit the JSTP site in Jessore and submit a note to BCC on the site suitability PwC Site visit completed on 11 th August, 2015 & Note submitted on 12 th August, 2015 Complete 3. Meeting with Investment Corporation of Bangladesh PwC & BCC Meeting scheduled on 13 th August, 2015 has been completed and Completed PwC 24

25 Appendix MoM circulated through on 17 th August, 2015 Should any of the above information not be correct, please revert back before 21 st August, 2015 to allow for corrections to be made. MoM 2 Discussion with ICB Date: 13/08/2015 Venue: ICB Office Attendees: Sl. # Name Designation/ Organization Prese nt 1. Mr. Md. Managing Director, ICB Yes Fayekuzzaman 2. Mr. Tarique M Deputy Project Director, BCC Yes Barkatullah 3. Mr. Farhad Hussain Technical Specialist (World Bank), BCC Yes 4. Representatives Investment Corporation of Bangladesh (ICB) Yes from ICB 5. Representatives Sonali Bank, Agrani Bank, Rupali Bank, Janata Bank etc. Yes from Banks 6. Mr. Ashis Sanyal Team Leader, PwC Yes 7. Mr. D. Aditya Prasad Member, PwC Team Yes Jena 8. Dr. Feroz Faruque Member, PwC Team Yes Agenda: S. No. Discussion Item Description 1. Discussion regarding Company formation: Discussion regarding the Structure of the Company iii. PwC team discussed on the project about the salient points of understanding and some of the important aspects of Funding & PwC 25

26 Appendix Share holding pattern of the proposed Company for DRS operation iv. Prioritize the work areas for the assignment based on key imperatives of the BCC & ICB Meeting Notes: 1. MD, ICB informed that Classification of Shareholders & Share Capital Ownership Pattern of ICB stands as follows: Shareholder Percentage Government of the People's Republic of Bangladesh Development Financial Institutions State Owned Commercial Banks State Owned Insurance Corporation Denationalised Private Commercial Banks 9.08 Private Commercial Banks 0.07 Mutual Fund 0.90 Other Institutions 0.28 General Public 1.96 Total Shareholding pattern of the company and Paid up capital would be dependent on the Project cost. 3. Participation from private banks would be dependent on the type and extent of control the proposed Company would allow for them. 4. The company could be a subsidiary of ICB, as prevalent for some existing entities. 5. Public Private Partnership (PPP) model may be another suitable option for the formation of the Company. 6. To ensure accountability post funding, due diligence would be an important exercise. 7. Government may be requested by ICB to provide Grant/Paid up Capital as Equity Holder/Lender. PwC 26

27 Appendix 8. Strategic partner may be chosen on the basis of Royalty/Investment in the company. 9. The structure of the Board of Directors of the proposed company would be dependent on Share Holding capital. 10. Managed Services model for operation of the of DC should be explored to find out whether that can be applicable. 11. Many existing bank branches are having branch-wise skeletal DRS which are situated in Dhaka city only (in some cases in the adjacent floors). Keeping in view that the Bangladesh banks may soon be CBS-enabled with seamless net banking facilities etc., there the banks need to have a robust Business Continuity Plan and from that angle Bangladesh banks are very much interested in the DRS project under discussion. It was mentioned that ICB took seminal efforts in outlining the project details. 12. A Working Group consisting of ICT professionals, BCC, Finance Ministry officials and Banks representatives and other stakeholders has been formed and opinion of this Working Group would be taken. PwC members requested that members of the WG may be invited in the forthcoming Vision, Mission, Objectives Workshop. 13. DPD mentioned that there is a thought of exploring for the proposed Company, the possibility of operating all the existing Data Centres of the government under one umbrella organization structure. 14. Some details of technical issues, like data throughput, mirroring, last mile connectivity etc. may be put in the questionnaire. 15. Real time synchronization, RPO, RTO, Storage etc. may be put in the questionnaire. 16. Any other technical issues, which would help designing the capacity and operation of the DRS can be put in the questionnaire. Action Points: Sl. No. Action Item 1. Structure and Constitution of Working Group to be provided to PwC Entity/Individual Responsible Details Pertaining to the Action Item Status DPD,BCC NA To be provided 2. Finalization of Date of VMO Exercise PwC, BCC & ICB Scheduled on 07 th September, 2015 at BCC from AM to 1.00 PM Yet to be completed Should any of the above information not be correct, please revert back before 21 st August, 2015 to allow for corrections to be made. PwC 27

28 Appendix Key Notes Visit to JSTP site in Jessore A team of three members from PwC, which included the Architect, the Civil Engineer and the DC/DR expert, visited the JSTP site on 11 th Aug The purpose of the site visit was to examine the suitability of the proposed area for setting up of a Global Data Center which would comply with Tier-III requirements including certification of the same from Uptime Institute. 1. The team visited the earmarked location of 4500 sq. feet and reviewed the site. 2. Another newly acquired 6 acre plot was also visited by the team, which is currently water filled. 3. The observations and findings of the team are as follows: I. The originally earmarked 4500 sq. ft. area is found to be not suitable due to the reasons below: a. The irregular shape of the proposed plot and its close vicinity to the Power Substation b. After incorporating the mandatory setbacks for fire tenders movement and security considerations the balance area would be inadequate for construction of the data center c. No provision to create access for transport vehicles carrying heavy computer equipment, Precision AC and HVAC equipment which would be required during set up and operations phase of the data center II. Team also reviewed the 6+ acre newly acquired plot. As of now this entire area is a 100% water body (water filled area). The team was informed that the entire area was originally dug out and the soil consumed for preparation of bricks, and the depth of the water is around 5 feet only. While the depth was not measured, it would be useful if the depth of the water body is measured at various points and the data is made available. III. Team was asked by site resident engineer to examine whether the 1 acre (approx.) of water body on the north-western end can be soil filled and can be developed for use for the Data Center build. The Hitech Park Authority would develop the remaining part as Eco-watercum-amusement Park with walkways all around the same. On this point PwC team observations are as follow: a. The said area (1 acre) has a width of 92ft at the road end, gradually tapering to around 80feet and then increasing to around 90feet. b. Assuming 80 feet available as total width, there would be a boundary wall and a pathway of 5-6 feet, built along one side on the same stretch of land. PwC 28

29 Appendix c. Keeping the necessary building setback of around 20 feet and fire tender movement space around the building of 20 feet with appropriate turning radius at the corners, hardly 35 feet width will be available which is grossly inadequate for a DC building. d. Also the approach road to this space is quite narrow (15feet). Vehicles carrying heavy computer equipment furniture and building material would create a huge traffic jam at the entry point, stopping all vehicular traffic beyond. e. The width of the space would also not allow a secondary vehicle entry passage, where the vehicles awaiting entry to the data center can pass through the necessary security checks. f. A power substation is also just adjacent to this space and hence this area will not satisfy the requirements. IV.On detailed study of the total additional 6+ acre space, PwC team considered to suggest the following options, subject to discussion with BCC and Hitech Authority team: a. The main 20 feet approach road by the side of the Training Center can be extended to cover the entire width of the water body. Reinforced concrete embankments on both sides of this extended approach road can be created which would give necessary isolation of the DC build up area from the water body. b. Once the road is extended, on the west side of the road a square plot of approx. 100x120 feet would be available, which would be suitable for DC set up. c. This area would have access from the main entrance and would be able to provide for heavy vehicle access to the DC area. d. The available area would allow the footprint of the DC to be around 120ft x100ft, which would provide the necessary scalability. e. Additionally, there would be requirement of service yard, to house DG sets, transformer, canteen, stores, potable water reservoir, water reservoir for fire, diesel tank, septic tanks, sewerage, diesel trucks etc. This service yard can be built on 1 acre narrow strip located in the west side of additional plot. 4. Further, discussion on suggestions as mentioned in point IV above is required with BCC and Hitech Park Authority. Soil testing for this area has to be done separately and accordingly the foundation of the DC building would be designed. A discussion may also be required with representative of Uptime Institute to assess the suitability of site for Uptime Certification. 5. Some additional suggestions on the infrastructure are given by PwC team which are given below: a. Boundary wall is to be constructed of RCC (preferably blast proof) or otherwise. PwC 29

30 Appendix b. Power fencing over the boundary wall and also sensors underground for detecting any trespassing/unauthorized forceful entry should be incorporated. c. Night vision cameras are to be installed to work in sync with the above sensors & power fencing relays d. Vehicular entry is to be regulated through a 3 tier security consisting of a synchronized series of under vehicle scanners, cameras, boom barriers, bollards. PwC 30

31 Appendix 8.2. Templates Depicted below are indicative screenshots of templates to be utilized during the engagement and may be customized to meet the engagement requirement. Template for Vision & Mission Statement Template for Business Plan Validation & Rationale Validation Is the preferred business plan in line with the mission/ vision and strategy? Is the earlier defined vision and mission still valid? If no, define the new mission/vision. Rationale Remarks (yes/no and explanation) ILLUSTRATIVE Remarks (yes/no and explanation) Will this business plan create added value for our shareholder, customers, and employees? PwC 31

32 Appendix Will the business make money and how (business model)? Are we best in class, where are we and where not? Is investment required? If yes, what investment is required? Do the rewards outweigh the risks? Do we have to develop the required capabilities Template for Business Plan Validation & Rationale Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Paid Capital Up ILLUSTRATIVE Cash Inflow Cash Outflow Total Net Revenue EBITDA Project A B C D E F Cashflow Based on A, B, C, D, E and F, project feasibility is determined either by NPV, IRR, RoI or Profitability Index. PwC 32

33 Appendix Template for ROI Calculation PwC 33

34 Appendix 8.3. Annexures Annexure I: Monthly Progress Report Format Project Name: Client Name: Work Order No./Contract date: Reporting Period: August 2015 Term as per Contract 06 Months Distribution List Client details PwC Project Team (Full Time*/Part Time) Report Circulated by: PwC Quality Reviewer (Offsite): Report Circulated by: PwC Project Co-coordinator: Scope Comments Has the objective(s) of the engagement changed? Has the scope of a deliverable(s) changed? Has the scope as per Contract/ Work order changed? Has the financial scope changed? Has the Team Composition changed? Delivery Schedule Is the project being impacted by external factors? Is the estimated project finish date likely to be missed? Is there delay due in the approval process for which Client s intervention is required? 9. Key deliverables till date and Status # Deliverable Name covering the scope of work Submissio n Status and Date Approval Status (Approved / Pending) Remarks 1. PwC 34

35 Appendix Major Activities performed in the reporting period Deviation from Project Plan, if any Open Issues / Risks Register / Other Points Administration Points/Issues, (including pending invoices and relevant details) 11. Proposed activities for the subsequent month Activities requiring Intervention/Information from the Client PwC 35

36 Appendix Annexure II: Issue Report Template BCC Issue Report No. * Date Organization BCC Raised by PwC Status (Open/Closed): Issue Description Issue Resolution Resolved By Resolution Date Resolution Details PwC 36

37 Appendix * This number should be the number next to the latest issue number logged in the Issue Log PwC 37

38 Appendix Annexure III: Issue Log Template BCC Issue Log Issue # Issue Status (Open / Closed) Date closed PwC 38

39 Appendix Annexure IV: Scope Change Management Report Any change, which may result in enhancement to Geographical, Functional or Technical Scope of Work, postponement of the major milestones in the engagement plan, increase in resources, infrastructure or planned training sessions will be subject to the following process: Either BCC or PwC Project Co-coordinator can raise a Scope Change Request ( SCR ) accompanied by suitable supporting documents. The PwC team will prepare a detailed estimate of person month effort to be required together with an estimate of additional fees and likely impact on the resource plan for each SCR. Consequent to formal approval by Steering Committee of the SCR together with cost and time estimates, the PwC team will then commence any work arising out of the SCR(s). On approval by Steering Committee, a new appendix containing the changes to the original contract, shall be mutually signed and appended to the above contract., which together with the existing appendices shall constitute the entire contract. Scope Change Management Report Template Feasibility Study for Building a Disaster Recovery Site (DRS) at Jessore Software Technology Park (JSTP), Jessore. Scope Change Management Report No. * Status (Open/Closed): Scope Change Request Date: Raised by: Organization: BCC PwC Scope Resolution Resolved By: Resolution Details: Resolution Date: PwC 39

40 Appendix * This number should be the number next to the latest number logged earlier PwC 40

41 Appendix Annexure V: Draft Questionnaire Basic Information # Description Details 1 Name of the Organization 2. Names of the Officials responsible for providing Information about the department (Confirmed by Nodal Officer for this project from BCC) # Name Designation Contact Number Signature 3. Names of the Officials responsible for collecting Information about the Department Agency (Confirmed by BCC) # Name Designation Contact Number Signature Sample Questionnaire Pertaining to DC/DRS 1 Do you have a captive Data Center? (i) Yes (ii) N0 2 Do you have a DR Site to take care of your applications in case your DC fails? (i) Yes (ii) N0 3 How far is your DR Site from your DC? (i) < 50 Kms (ii)> 50kms 4 Do they fall in the same seismic Zone? (i) Yes (ii) N Did you perform a Risk assessment of your DC before you planned the DRS? Did you identify the Mission critical applications which would require to be run in the case of a disaster? Did you perform a BIA ( Business Impact Analysis) for the applications if the DC fails (i) Yes (i) Yes (i) Yes (ii) N0 (ii) N0 (ii) N0 Sample Questionnaire Pertaining to Market Analysis & Business Planning What is the envisaged market area for the proposed DC/DRS? What are the estimated spending on DC/DRS services by the potential Bangladeshi clientele? What is the impact, if there is any, of current and prospective competitors? Does the proposed location for DC/DRS is conducive to prospective clients <<Pl describe... >> <<Pl describe... >> <<Pl describe... >> (i) Yes (ii) N0 PwC 41

42 Appendix expectations? What are the market preferences relating to DC/DRS design features, facilities, sizes, service pricing and service management structures? What amenities will prospective clients require to be offered by the proposed DC/DRS? What marketing strategy would help BCC to reach the target DC/DRS market? Do you see possibility of participation of Private Banks of Bangladesh in the DRS Company? If yes is the answer to the above question then how do you see the extent of control through participation by percentage of shareholding? Is it ok with you if the proposed DRS company is formed as a wholly subsidiary to ICB? How do you see the possibility of taking a Strategic Partner for the DRS company? <<Pl describe... >> <<Pl describe... >> <<Pl describe... >> (i) Yes (ii) N0 (iii) Can t Say (i) < 51 % (ii)> 51% (i) Yes (ii) N0 (iii) Can t Say (i) Yes (ii) N0 (iii) Can t Say Sample Questionnaire Pertaining to Site Survey, DC/DRS Building & Operation Modalities If the open land is available for DC/DRS building construction, are you aware whether any soil and environment analysis required for building construction has been done earlier at that site of the JSTP? Are you aware that for the Technology Park an EIA has been done and a Report issued in the recent past? Any knowledge about any soil test for building construction is done on the JSTP site? Any preference/opinion for the total number of the floors in the DC building? The DC/DRS building will be a stand-alone entity, will the administrative and other nontechnical offices to be located separated from the technical areas.in the same building or in the same premises? As reflected in the ToR that state-owned commercial banks and FIs will become collaborators/stakeholders for the DC/DRS company. In that case how the autonomy would be achieved? <<Pl describe... >> <<Pl describe... >> <<Pl describe... >> <<Pl describe... >> <<Pl describe... >> <<Pl describe... >> PwC 42

43 Appendix Glossary Abbreviations GoB ICT WAN PoP BCC ICB DRS JSTP Description Government of Bangladesh Information and Communications Technology Wide Area Network Point of Presence Bangladesh Computer Council Investment Corporation of Bangladesh Disaster Recovery Site Jessore Software Technology Park PwC 43

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