AFRICAN DEVELOPMENT FUND

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized AFRICAN DEVELOPMENT FUND PROJECT : FEASIBILITY STUDY ON THE PROJECT TO ESTABLISH UNIVERSITY TECHNOLOGY POLES OF EXCELLENCE IN CENTRAL AFRICA MULTINATIONAL : ECONOMIC COMMUNITY OF CENTRAL AFRICAN STUDY APPRAISAL REPORT PROJECT : FEASIBILITY STUDY ON THE PROJECT TO ESTABLISH UNIVERSITY TECHNOLOGY POLES OF EXCELLENCE IN CENTRAL AFRICA MULTINATIONAL : ECONOMIC COMMUNITY OF CENTRAL STATES (ECCAS) AFRICAN STATES (ECCAS) STUDY APPRAISAL REPORT OSHD DEPARTMENT December 2015 Translated Document

2 Table of contents I. STRATEGIC THRUST AND RATIONALE STUDY LINKAGES WITH THE ECONOMIC COMMUNITY S STRATEGY AND OBJECTIVES RATIONALE FOR BANK INTERVENTION AID COORDINATION... 3 II. STUDY DESCRIPTION CONTEXT STUDY OBJECTIVE AND COMPONENTS TECHNICAL SOLUTIONS ADOPTED AND ALTERNATIVES EXPLORED PROJECT TYPE STUDY COST AND FINANCING ARRANGEMENTS STUDY TARGET AREA AND BENEFICIARIES PARTICIPATORY APPROACH FOR IDENTIFICATION, DESIGN AND IMPLEMENTATION BANK GROUP EXPERIENCE AND LESSONS REFLECTED IN STUDY DESIGN KEY PERFORMANCE INDICATORS... 9 III. STUDY FEASIBILITY ECONOMIC AND FINANCIAL PERFORMANCE: NOT APPLICABLE ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACT... 9 IV. IMPLEMENTATION IMPLEMENTATION ARRANGEMENTS STUDY COORDINATION AND MANAGEMENT STUDY MONITORING AND EVALUATION GOVERNANCE SUSTAINABILITY RISK MANAGEMENT KNOWLEDGE BUILDING LEGAL FRAMEWORK LEGAL INSTRUMENT CONDITIONS FOR FUND INTERVENTION COMPLIANCE WITH BANK POLICIES VI. RECOMMENDATION CONSULTANT S TERMS OF REFERENCE /13 APPENDIX I : COMPARATIVE SOCIO-ECONOMIC INDICATORS OF ECCAS MEMBER COUNTRIES. 1/18 APPENDIX II : TABLE OF BANK GROUP PORTFOLIO OF MULTINATIONAL OPERATIONS IN CENTRAL AFRICA AS AT 30 JUNE 2015 (IN UA MILLION) 12/18 APPENDIX III : MAJOR RELATED PROJECTS FINANCED BY THE BANK AND ECCAS OTHER DEVELOPMENT PARTNERS /18 APPENDIX IV : MAP OF THE STUDY AREA... 18/18

3 Currency Equivalents (September 2015) Currency Unit = CFAF UA 1 = CFAF UA 1 = AON UA 1 = BIF UA 1 = RWF UA 1 = STD UA 1 = USD UA 1 = EUR Fiscal Year 1 January 31 December Weights and Measures 1 metric tonne = pounds 1 kilogramme (kg) = 2.20 pounds 1 metre (m) = 3.28 feet 1 millimetre (mm) = inch 1 kilometre (km) = 0.62 mile 1 hectare (ha) = acres AAU ADEA AFD AIRD AU CAMES CEMAC DISC DPBRAH ECCAS EIMS EU HTE IAST IMF IsDB OHADA PAU PETU REC RISP SYSCOHADA UNESCO ACRONYMS AND ABBREVIATIONS Association of African Universities Association for the Development of Education in Africa French Development Agency Inter-Agency Research Institutes for Development African Union African and Malagasy Council for Higher Education Central African Economic and Monetary Community Department of Social and Cultural Integration Programme, Budget, Administration and Human Resources Department Economic Community of Central African States Education Information and Management Systems European Union Higher Technological Education Institute of Applied Science and Technology International Monetary Fund Islamic Development Bank Organization for the Harmonization of Business Law in Africa Pan-African University University Technology Pole of Excellence Regional Economic Community Regional Integration Strategy Paper OHADA Accounting System United Nations Educational, Scientific and Cultural Organization

4 Study Information Sheet Client Information Sheet DONEE : Economic Community of Central African States (ECCAS) EXECUTING AGENCY : ECCAS General Secretariat Financing Plan Source of Financing Amount Instrument ADF UA 2.2 million Grant ECCAS UA 0.21 million Counterpart Contribution TOTAL COST UA 2.41 million ADF Financing Information Grant Currency : UA Interest Rate Type : NA Base Rate : NA Loan Margin : NA Financing Margin : NA Commitment Fee : NA Other Fees : NA Tenor: : NA Grace Period : NA Timeframe Main Milestones (expected) Appraisal May 2014 Update of Appraisal Report September 2015 Negotiations November 2015 Study Approval December 2015 Effectiveness January 2016 Mid-term Review November 2016 Completion December 2017 Last Disbursement June 2018 ii

5 EXECUTIVE SUMMARY Name: Feasibility Study on the Project to Establish University Technology Poles of Excellence in Central Africa Geographical Coverage: Multinational (ECCAS) Study Overview Needs Assessment and Relevance Expected Study Outcomes and Beneficiaries Bank s Value Added Institutional Development and Knowledge Building General Schedule: from December 2015 to 31 December 2017 Financing: UA 2.41 million (ADF: UA 2.2 million; ECCAS counterpart contribution: UA 0.21 million) Operational Instrument: Preparatory Study The establishment of regional poles of excellence requires substantial resources (infrastructure, equipment, personnel, programmes, etc.). The study will help to assess the additional needs and capacity of candidate entities to host the Centres in order to pool existing resources and limit new expenditure. It is also necessary to examine various issues related to the establishment of Centres, particularly organizational, financial, regulatory, legal, and partnership issues. The result of these different actions will be used to prepare a project document for the establishment of University Technology Poles of Excellence. The expected outcomes are: (i) preparation of 11 country directories and 1 summary report on the situation of university technology training institutions; (ii) preparation of a report on the assessment of candidate institutions and a regional summary report; (iii) design of the project document for the establishment of PETUs; and (iv) preparation of the science diplomacy framework document. The main direct beneficiaries of the study are the ECCAS General Secretariat as well as ECCAS member countries and the training entities selected, which will be directly involved in the various phases and activities to be implemented within the framework of the establishment of PETUs. This operation will contribute to addressing strategic, institutional and operational challenges in higher education, with a view to helping ECCAS to foster regional integration. It should also contribute to reducing fragility and building resilience at the regional level insofar as human resource capacity building is one of its key factors. The Bank has undertaken to support regional economic communities (RECs) to implement the integration process and develop skills in line with the strategy adopted for the region. The study will enable the Bank to play a vital catalytic role in developing skills in Central Africa. It will place the results of the analysis of candidate institutions at the disposal of ECCAS and its member countries. The results will be used to enhance the appraisal of the Project to Establish Poles of Excellence. The project document to be prepared will help to mobilize partners to provide technical and financial contribution for the study. The implementation of this study will contribute to building various types of knowledge, including the capacity to analyse and design the institutional and pedagogical framework of PETUs as well as carry out self-evaluation research. The technical assistance envisaged by the study will contribute to transferring knowledge to institutions, the relevant ministries and the training entities selected by involving national focal points in various activities. The lessons to be drawn from implementing the study will be disseminated by validating and publishing the results obtained. iii

6 ECCAS: Feasibility Study on the Project to Establish University Technology Poles of Excellence in Central Africa Results-Based Logical Framework Countries and Project Name: Feasibility Study on the Project to Establish University Technology Poles of Excellence in ECCAS Member Countries Project Goal: Conduct a diagnosis of higher technology education at the regional level with a view to preparing a project document for the establishment of University Technology Poles of excellence (PETUs) PERFORMANCE INDICATORS RISKS/ MEANS OF RESULTS CHAIN Baseline MITIGATION Indicator (including ISC) Target VERIFICAT. Situation MEASURES IMPACT OUTCOMES Build capacity in human resource training by establishing PETUs in the technological areas identified* Outcome 1: Better knowledge of university technology training institutions in the areas identified * Outcome 2: Detailed analysis of the academic, institutional, logistical and financial requirements for the effective establishment of PETUs Output 1.1: Inventory of institutions and the human capital needs of the economy, taking into account gender and social inclusion dimensions in the areas identified* Output 1.2: Assessment of the institutions selected per country for the areas identified* Output 2.1: Implementation of feasibility study A decision is adopted by the highest authorities of ECCAS approving the PETU Project and its implementation arrangements A national and regional map of university technology training institutions is prepared and validated Feasibility study of PETUs validated 1. A detailed directory (country and region) of university technology training institutions in the selected areas prepared and validated 2. Summary report on the inventory of university technology training institutions prepared 3. A report on the assessment of the human capital needs of the economy (country and region) prepared and validated 1. National assessment reports on the selected institutions prepared and validated 2. Regional assessment report on the selected institutions prepared and validated 1. A detailed feasibility study report (academic, institutional, logistical and 0 in decision in in in 2016 Directories 0 in in in in in in in in in reports in in in in in 2016 Reports Reports Reports Risk: Difficulties in reaching consensus amongst States on the choice of institutions Mitigation Measure: Define clear and transparent criteria; involve all States at all stages of the document validation process Risk: ECCAS weak institutional capacity, which may delay the implementation of the study Mitigation Measure: (i) recruit a regional HTE expert to support GS/ECCAS in coordination; and (ii) use the PARCI- ECCAS fiduciary pool iv

7 Output 2.2: The regional project (PETU) is designed Output 2.3: The Partnership and Resource Mobilization Strategy is designed Output 3: The executing agency s capacity is built financial aspects, and business plan) is prepared 1. A project document based on the feasibility studies is prepared 1. Science diplomacy framework document prepared and validated 1. 0 in in in in 2017 Science diplomacy document 2. Round table of partners 2. 0 in in Number of experts recruited 0 in experts in support of project management 2. Furniture/equipment acquired 0 in Furniture/ equipment 3. Quarterly and audit reports 0 in quarterly reports and 2 audit reports in Study implementation rate 0% in % in 2017 COMPONENTS Component 1: Inventory and Appraisal of the Selected Institutions: Consultancy services; national and regional workshops; trips and missions Component 2: Preparation of the Project Document for the Establishment of PETUs: Services; workshops; study missions and trips Component 3: Management Support: Operation of the Coordination Team Project Report RESOURCES Total: UA 2.41 million; ADF: UA 2.2 million; ECCAS: UA 0.21 million Component 1: Component 2: Component 3: * (i) Agriculture, Livestock, Fisheries, Agro-industry and Biotechnology; (ii) Energy, Energetics, Electrical Engineering, Biomedical Engineering, Heat Engineering; Renewable Energy and Hydroelectricity; (iii) Infrastructure, Mining and Metallurgy; (iv) Petroleum, Gas and Chemical Engineering; (v) Forestry Timber and Environment; (vi) Applied Mathematics, Mechanics and Computer Science; and (vii) Computer Engineering, Telecommunications, and Information and Communication Technology. v

8 Study Implementation Schedule vi

9 BANK GROUP MANAGEMENT REPORT AND RECOMMENDATION TO THE BOARD OF DIRECTORS CONCERNING THE FEASIBILITY STUDY ON THE PROJECT TO ESTABLISH UNIVERSITY TECHNOLOGY POLES OF EXCELLENCE IN CENTRAL AFRICA Management hereby submits the following report and recommendation on a proposal to award an ADF UA 2.2 million grant to the Economic Community of Central African States (ECCAS) to finance the Feasibility Study on the Project to Establish University Technology Poles of Excellence (PETUs). I. STRATEGIC THRUST AND RATIONALE 1.1 Study Linkages with the Economic Community s Strategy and Objectives The study is in line with ECCAS objective to make higher technology education a key economic development tool. The economic growth of the ten (10) countries of the region, which have a huge agricultural potential, is based on natural resources (timber, minerals, oil, gas, etc.). However, the processing of these resources to obtain greater value added is posing problems due to lack of suitable skills. To address this situation, the Heads of State of ECCAS member countries made university technology education a regional priority in October Against this backdrop, the Ministers in charge of higher education in ten ECCAS member countries (Angola, Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic Republic of Congo, Equatorial Guinea, Gabon, Rwanda, and Sao Tome and Principe) met in Yaoundé in June 2012 and signed a Declaration of Commitment to establish of university technology poles of excellence (PETUs), the feasibility study of which was the subject of ECCAS s request for Bank financing. Rwanda was re-admitted to ECCAS at the Conference of Heads of State and Government of ECCAS member countries held in N Djamena, Republic of Chad, on 25 May This new member country will be taken into account during the conduct of the study, depending on its area of interest This study will enable the Bank to play a vital catalytic role in developing skills for Central Africa, in line with its Regional Strategy and Human Capital Strategy. The study plugs into Pillar 2 of RISP entitled Building Regional Human and Institutional Capacity, which was reviewed at mid-term in January Under this pillar, the Bank also seeks to develop human competencies to meet economic diversification needs. The study is also consistent with the Bank s Strategy (Skills and Technology Pillar) as well as its Regional Integration Operational Priority and the Human Capital Strategy approved in June 2014 which emphasizes skills development for employment and competitiveness. 1.2 Rationale for Bank Intervention The study will contribute to analysing the situation of higher technology education in order to prepare the project document for the establishment of technology poles of excellence in the growth sectors for diversification identified by the authorities of the region. The regional study on private investment in ECCAS carried out by the Bank in 2012: (i) showed that one of the causes of structural weaknesses in this regional economic community is inadequate training, particularly the mismatch between educational systems and the skills requirements of businesses; and (ii) highlighted the advantage of prioritizing the pooling of efforts in the area of training in order to achieve economies of scale, given that States are not effective enough when operating alone. The proposed study will provide the issues to discuss to break the inertia observed 1

10 in the development of higher education systems, unable to gradually tailor training to the skills requirements resulting from developments in the production sector, particularly the private sector PETUs will serve as thematic training and research centres made up of the region s best institutions selected according to well-defined criteria. PETUs will focus on the following areas: (i) Agriculture, Livestock, Fisheries, Agro-industry and Biotechnology; (ii) Energetics, Electrical Engineering, Thermal Biomedical Engineering, Renewable Energy; (iii) Infrastructure, Mining and Metallurgy; (iv) Petroleum, Gas and Chemical Engineering; (v) Forestry Timber, Water and Environment; (vi) Applied Mathematics, Mechanics; and (vii) Computer Engineering, Telecommunications, and Information and Communication Technology. PETUs seek, among other things, to: (a) stimulate the mobility of the scientific community through higher education and research training in the ECCAS Space; (b) support the culture of competitiveness and quality higher education in Africa; and (c) establish student and researcher pools The Bank s intervention will be a contribution to the efforts made by ECCAS and the governments of member countries to promote higher technology education. The efforts have helped to increase access to higher education in ECCAS with enrolment rates rising from 3.8% in 2006 to 5.4% in However, higher education is still dominated by literary courses and inadequately documented and professionalized. In 2009, agriculture, science and engineering accounted for 21.1% of student enrolment in the CEMAC zone, against 70.3% for the social science, literature and arts The study will also help to analyse the challenges of higher technology education with a view to finding solutions through PETUs. Higher technology education in the CEMAC zone is facing many challenges including: (i) inadequate/unsuitable infrastructure and equipment (the intake capacity in terms of infrastructure does not keep pace with the student population); (ii) training and supervision difficulties (in 2011, the training and supervision rate was 1 lecturer for 50 students in Cameroon and 250 students in Chad, against the standard ratio of 25 students per lecturer recommended by UNESCO); (iii) high cost (the cost per student at the National Advanced School of Engineering of Yaoundé is at least 20 times more than in the faculties of arts) and the predominant use of public resources (about 80%); and (iv) mismatch between training and economic needs (unemployment rate of more than 20% among graduates three years after graduation). Furthermore, research and innovation tasks seem to be more oriented towards basic (theoretical) research than applied research, which could concern and involve (public and private) production sectors. There is also lack of gender-disaggregated statistical data by sector. In 2009, enrolment in three areas in the three countries with gender-disaggregated data (Cameroon, Gabon and Central African Republic) in this zone was as follows. 2

11 Area Cameroon Gabon CAR Total B G T B G T B G T B G % Girls Science % Engineering % Agriculture % Total % The study will help to analyse the situation of institutions and areas of training from the gender and social inclusion viewpoints (rural/urban origin, pioneer students, socio-professional categories of parents, etc.) in the university to find appropriate solutions. These solutions will be considered in the establishment of PETUs in order to significantly achieve social inclusion and gender equality. 1.3 Aid Coordination Appendix III provides a detailed presentation of the interventions of TFPs in regional integration in Central Africa. The coordination of TFPs in the two regional organizations (CEMAC and ECCAS) remains weak. There is no operational entity in charge of coordinating and monitoring donor interventions. Furthermore, very few TFPs are involved in education financing in the region. These include: (i) AIRD/France (research development partnership); (ii) UNESCO and ADEA (operationalization of the Programme to Strengthen the Education Information and Management Systems - EMIS); (iii) the African Union (support to veterinarians); and (iv) AFD (various operations in the social sector of ECCAS member countries). However, cooperation agreements exist and periodic meetings held between donors enable them to share information with a view to coordinating and streamlining their operations. The participation of TFPs involved in education and training (CEMAC, UNESCO and ADEA) in the Steering Committee and study document validation workshops will enable ECCAS to involve them in its activities. Furthermore, the Science Diplomacy Document and the round table of partners on the project document for the establishment of PETUs will enable ECCAS to develop an integrated resource programming tool, therefore an instrument for aid coordination. II. 2.1 Context STUDY DESCRIPTION The member countries of the Economic Community of Central African States have abundant natural resources, a huge agricultural potential, a diverse climate and a young population. These assets do not fully contribute to developing economies whose growth over the last few years (annual average growth rate of 5.1% in 2014 against 4.9% in 2013) has mainly been based on the tapping of raw materials, particularly petroleum and minerals. The region s economies are also characterized by low human resource development and the mismatch between them and the fields, level and quality of jobs offered. Low economic diversification rate and weak human resource capacity are among the main factors of fragility of the region and contrast with its potential. 3

12 2.1.2 Thus, over the last few years, ECCAS initiated discussions on human resource development, which led to the adoption of an education strategy paper by the Heads of State of the sub-region. The said paper lays great emphasis on all the human resource weaknesses in the technology sector in particular, and makes the technological component of higher education a sub-regional priority. Building on this, the ministers in charge of higher education in ECCAS member countries met in Yaoundé, Republic of Cameroon, from 26 to 29 June 2012 to sign a Declaration of Commitment to establish university technology poles of excellence in the abovementioned areas The ECCAS region is grappling with political instability and security challenges. Central Africa has experienced large-scale political instability in recent years. With the exception of Cameroon, Gabon and Sao Tome and Principe, which enjoy relative socio-political stability, other countries have experienced varying degrees of internal unrest, resulting in rebellion, civil war and inter-state conflict in some countries, often fuelled by the exploitation of the region s soil and subsoil resources. In accordance with the Bank s criteria, five (Burundi, CAR, Chad, Congo and DRC) out of the ten ECCAS member countries are fragile States. Peace and stability are the fundamental requirements for economic development and regional integration. Therefore, one of the Community s priorities is to achieve peace and stability through the implementation of its 2025 Strategic Vision, which could also contribute to reducing the region s fragility insofar as building human capacity is one of the main fragility reduction factors. 2.2 Study Objective and Components The study s sector objective is to support the economic development of countries by building capacity in university technology training in the priority areas identified by Central African countries. The specific objective is to determine the feasibility of University Technology Poles of Excellence (PETUs). In this regard, the diagnosis of higher technology education will help to assess the capacity of selected institutions and to define the national and regional academic, institutional, policy and financial frameworks for the effective establishment of PETUs The study will be implemented in 26 months. The table below summarizes its components and activities. 4

13 Table 2.1 Project Components Component Cost in UA Million Description 1. Inventory and Assessment of 1.08 Selected Institutions 2. Preparation of the Project Document for 0.67 the Establishment of PETUs 3. Study Management Support 0.66 A detailed map of public and private university and technological training institutions per country in ECCAS is prepared; Analysis of the skills requirements of the economy of countries and of the region in the areas identified*; Evaluation of candidate institutions (staff, programme, organization, consideration of the gender dimension, rules and regulations, infrastructure, equipment, etc.); Gender equality aspects and inclusion of female students and lecturers. Preparation of the project document for the establishment of university technology poles of excellence based on the study outcomes; Preparation of the Science Diplomacy Framework Document; Organization of a donors round table. Provision of additional human resources to the Department of Social and Cultural Integration (DISC); Office furniture and equipment; Laptops for country focal points; Conduct of annual study audits; Operating costs. * : (i) Agriculture, Livestock, Fisheries, Agro-industry and Biotechnology; (ii) Energetics, Electrical Engineering, Thermal Biomedical Engineering, Renewable Energy; (iii) Infrastructure, Mining and Metallurgy; (iv) Petroleum, Gas and Chemical Engineering; (v) Forestry Timber, Water and Environment; (vi) Applied Mathematics, Mechanics; and (vii) Computer Engineering, Telecommunications, and Information and Communication Technology. 2.3 Technical Solutions Adopted and Alternatives Explored During the preparation of the study, options concerning the scope of study activities and beneficiaries, particularly the level of training, were considered. It was noted that the problem of lack of skills arises at the intermediate (general and technical secondary education) and higher education levels. Therefore, the study should cover those levels of education. However, the option to regard university technology training as a regional priority chosen by the Heads of State of ECCAS member countries is justified in that there is a need for sufficient qualified human resources in higher education to manage training (tool and programme design and development, and implementation) at the intermediate and basic education level. This approach will help to build a critical mass of trainers to strengthen the different levels of education and establish an integrated and inclusive system that mainstreams social inclusion and gender equality at the national and regional level Furthermore, the Bank, through the African Union, is supporting the Pan-African University (PAU) whose mission is to provide training and promote scientific research. The Pan-African University comprises five (5) thematic areas hosted in various African regions, namely: (i) Science, Technology and Innovation (Kenya: East Africa); (ii) Life and Earth Sciences, including Health and Agriculture (Nigeria: West Africa); (iii) Water and Energy Sciences, including Climate Change (Algeria: North Africa); (iv) Space Sciences (Southern Africa); and (v) Governance, Humanities and Social Science (Cameroon: Central Africa). PETUs do overlap with those of the Pan-African University, which are continental institutions and should be supported at the regional and national level. Hence, PETUs are an intermediate link of the continental system 5

14 of excellence. Furthermore, the PAU and PETUs are complementary since the same disciplines are not replicated in the same region. 2.4 Project Type This is a feasibility study which will provide vital support to ECCAS in its quest for a strategy to build the skills needed for the region s economic development. Therefore, it is a regional public good as it will help to create all the necessary conditions for project design. Its financing as a regional public good will enable the Bank to play a vital catalytic role in this process. 2.5 Study Cost and Financing Arrangements The total study cost, net of taxes and customs duties, is estimated at UA 2.41 million, of which UA 1.35 million in foreign exchange (56%) and UA 1.06 million in local currency (44%). This cost will be co-financed by the ADF (91.3%) and ECCAS (8.7%). The cost estimates were determined based on unit prices and lump sum prices, in line with similar services implemented in the region. ECCAS contribution is an estimate of the premises to be used as offices by the study team and the appointment of a Study Coordinator. The cost includes an 8% provision for physical contingencies and a 4% provision for yearly price escalation for foreign exchange and local currency expenditure. Tables 2.1, 2.2, 2.3, 2.4 and 2.5 present the study cost by component, source of financing, expenditure category and source of financing, respectively, as well as the expenditure schedule by component. The detailed costs are presented in the Technical Annex. Table 2.1 Estimated Study Cost by Component Components (CFAF Million) (UA Million) L.C. F.E. Total L.C. F.E. Total % in F.E. 1. Inventory and Assessment of the Selected Institutions Project Document for the Establishment of PETUs Project Management Total Base Cost Physical Contingencies Price Escalation Total Project Cost Table 2.2 Study Cost by Source of Financing (in UA million) ADF ECCAS Total Amount % Amount % Amount % Foreign Exchange Local Currency Total

15 Table 2.3 Study Cost by Expenditure Category in CFAF and UA Million CFAF Million UA Million % in F.E. Expenditure Categories L.C. F.E. Total L.C. F.E. Total A. Goods B. Services C. Operation Total Base Cost Physical Contingencies Price Escalation Total Project Cost Table 2.4 Study Cost by Category ADF Grant UA Million UA Million Expenditure Categories Local Devise Total A. Goods B. Services C. Operation Total Base Cost Physical Contingencies Price Escalation Total Project Cost Table 2.5 Study Cost by Expenditure Category and Source of Financing in UA Million Expenditure Category Source of Financing Total ADF ECCAS A. Goods B. Services C. Operation Total Cost Table 2.6 Expenditure Schedule by Component in UA Million Components Total 1. Inventory and Assessment of the Selected Institutions Project Document for the Establishment of PETUs Project Management Total Project Cost Study Target Area and Beneficiaries The main beneficiaries of the Study are public and private entities in charge of university technology education, the universities and training institutions selected for assessment and ECCAS. All ECCAS Member States whose total population is estimated at 147 million, about 52% of them women and 43% youths under 15 years of age (in 2013, AfDB sources), will benefit from the mapping of training entities as well as the human capital needs of 7

16 the economy in the areas identified. The training institutions selected will be evaluated and could be supported to improve various aspects related to the weaknesses identified. Eventually, the region s economies will benefit from a sufficient number of quality skills in the areas identified (see Pages vi and 6). 2.7 Participatory Approach for Identification, Design and Implementation The participatory process will include consultations with the beneficiary administrative entities, training institutions and technical and financial partners. During the various missions carried out, consultations were held with donors, notably UNESCO, the World Bank, bilateral donors, CEMAC and ADEA, as well as governments, academic communities, the private sector and sub-regional higher education entities. These natural or legal persons were consulted during the various information and working meetings held with the ten countries. They expressed high expectations for the study and stressed the need to foster the spirit of inclusion so that no country or institution is excluded. They proposed that differences (language and academic facilities) should be analysed and solutions proposed to promote concerted development in university technology training fields The participatory approach will be continued during the implementation of activities. The mechanism involving governments, higher education institutions, the academic communities, donors and the private sector will seek to enhance their involvement in all the study phases. Thus, the mechanism will help to reach a consensus on the diagnosis as well as the structural, institutional and educational orientations to be implemented in order to ensure the establishment of university technology poles of excellence. Having been the linchpin of this participatory approach by mobilizing countries, notably establishing a regional steering committee, sensitizing and training national experts and focal points in the preparation of the study information sheet and developing tools for assessing candidate institutions, UNESCO remains committed to moving the activities forward. 2.8 Bank Group Experience and Lessons Reflected in Study Design The analysis of the regional operations portfolio performance by ORCE as of 30 June 2015 shows that although project implementation has been revitalized, the main constraints identified during the RISP mid-term review in January 2014 linger on. This regional portfolio comprises 20 operations financed with AfDB and ADF window resources, of which 15 investment projects, 2 institutional support operations and 3 feasibility studies. It also comprises 13 regional operations financed through thematic trust funds, of which 5 feasibility studies (NEPAD-IPPF/TAF-PRI) and 9 projects (CBFF). As of 30 June 2015, the average age of AfDB and ADF window operations was 4.4 years, with a disbursement rate of 34.2%. The average age of the 8 CBFF projects is 4.1 years, with a disbursement rate of about 40.7%. These slippages reflect recurring difficulties attributable to: (i) the poor quality or unavailability of feasibility studies within the prescribed timeframes; (ii) divergences between parties concerning project structuring from the institutional standpoint; (iii) the weak commitment of States regarding the preparation of some operations; and (iv) the inadequate or low quality dialogue, leading either to significant changes in project design or the conduct of additional studies. In addition, the procurement process is long due to: (a) project design (some procurement methods are inappropriate); (b) poor knowledge of Bank rules and procedures by project executing agencies 8

17 (poor quality of procurement documents); and (c) poor activity planning (under-utilization of procurement plans) The following lessons learned from these operations are reflected in this study. The issues that may be considered as conditions precedent to first disbursement have been reduced to the strict minimum. The most relevant procurement methods depending on activities have been selected and the Procurement Specialist of the ECCAS Institutional Capacity Building Support Project (PARCI) retained. Concerning financial and accounting management, PARCI s Administrative and Financial Officer and Accountant (to be recruited) will use PARCI s accounting system and management software that will be configured to adapt it to the study data. 2.9 Key Performance Indicators The performance indicators identified and the expected outcomes upon completion of the study are those presented in the results-based logical framework. The monitoring and evaluation system will draw on the study beneficiary structures and the Management Unit. Box: Key Performance Indicators Output Indicators III. Detailed directory of public and private university technology training institutions by country, with the skills requirements of the economy in the areas identified; Summary directory of the region s institutions, with the skills requirements by area; Report on the assessment of candidate institutions; Regional summary report; Project Document on the Establishment of University Technology Poles of Excellence; Science Diplomacy Framework Document; Donors round table. Outcome Indicators Detailed map of public and private university technology training institutions by country, with the skills requirements of the economy of countries in the areas identified; Feasibility study on PETUs validated. Impact Indicators A decision adopted by the highest authorities of ECCAS approving the project document on the establishment of PETUs and its implementation arrangements. STUDY FEASIBILITY 3.1 Economic and Financial Performance: Not Applicable 3.2 Economic, Environmental and Social Impact Economic Impact: skills development is a lever for economic development and regional integration. The study outcomes will enable higher technology education in the region, which is responsible for producing highly qualified senior officers, to fully play its role. PETUs will enable the region to develop a common vision for university technology training, pool the human, technological and financial resources needed to develop research and create a critical mass 9

18 of scientific and technical experts who can participate in national and regional economic development projects. PETUs will also serve as areas of concentration of students, researchers and enterprises, thus promoting regional economic integration Environmental Impact: this is a feasibility study to which environmental classification is not applicable. The study activities will have no negative environmental impact. Eventually, the development of skills and research in Agriculture, Agro-industry, Biotechnology; Energy (renewable, hydropower, etc.); and Forestry Timber and Environment will contribute to improving the mastery of environmental issues and implementation of related programmes Climate Change: study activities will have no negative impact on climate change. However, it is expected that the quality training as well as research provided in the PETUs established after the study will take into account the results of climate change analysis in various areas, helping countries and the region to better deal with this issue Gender Issues: gender and inclusion issues will be mainstreamed into the study. The African Union Education Outlook 2012 report shows that despite efforts made, higher education in ECCAS is dominated by men: the Gender Equality Index varies from 2 men for every woman in Cameroon and Sao Tome and Principe to 2.3 in the Central African Republic and 6 and 5 in Chad and the Democratic Republic of Congo, respectively. In addition, there is a lack of genderdisaggregated statistical data by sector. The study will analyse the situation of institutions, training areas and gender-related economic needs in order to provide relevant solutions to them. Such solutions will be taken into account in the establishment of PETUs so as to achieve gender parity in all areas. Furthermore, the gender dimension will be mainstreamed into institutions performance indicators Social Impact: the study will examine university technology training in the ECCAS in terms of social inclusion. Social issues (students origin, socio-economic distribution, rural/urban, etc.) as well as training cost, which is sometimes prohibitive, will be considered in the mapping and assessment of the training institutions selected. The poles of excellence ensuing from this study will offer opportunities for providing quality training to youths at the regional level in the priority areas retained and take into account the results of the different diagnoses. PETUs will also provide further training for senior officers to upgrade the skills of those who have already been trained in these areas. The development of scientific and technical skills will help to strengthen the production sectors of the different national economies, promote job creation and contribute to reducing the brain drain. The training system in PETUs will be oriented towards providing sustainable solutions to meet the needs of the population, thus contributing to improving their living conditions and to economic and social development Involuntary Resettlement: the study will not entail any involuntary resettlement of people. IV. IMPLEMENTATION 4.1 Implementation Arrangements Study Coordination and Management The study will be implemented by the Department of Social and Cultural Integration (DISC) of the ECCAS General Secretariat based in Libreville. In accordance with the provisions of the Paris Declaration on the harmonization and alignment of project management 10

19 with national systems, the DISC of ECCAS will be the Executing Agency of the study. Given that the department lacks adequate human resources (no competence in higher technology education) and practical experience in managing projects financed by partners, it will be strengthened so as to enable it to perform its new task. To that end, it will be reinforced by: (i) a regional higher education and technology expert; (ii) a management assistant; and (iii) an accountant. The study will be coordinated by SGA/DISC, with the support of the Department s Education Expert. The staff needed to strengthen the department will be recruited on a competitive basis through a call for candidature and remunerated with ADF resources. Prior to recruitment, the Bank shall deem satisfactory the qualifications of this staff. Concerning accounting management and procurement, the study will, in accordance with the spirit of the ECCAS Institutional Capacity Building Support Project (PARCI), use the services of the PARCI Fiduciary Team comprising an administrative and financial officer, a procurement specialist and an accountant. However, given the incumbent accountant s current workload, another accountant will be recruited for the study. Since PARCI will be completed in December 2016, the study will pay the administrative and financial officer s allowances in The institutional framework for study management will also include focal points in member countries, a Management Committee (CoGes) and a scientific advisory body. CoGes will oversee the implementation of the study through strategic orientation, general coordination and validation of work programmes and related budgets. Focal points will be competent senior officers appointed by ministries in charge of higher education. They should be specialized in one of the areas identified for the establishment of PETUs and capable of organizing and coordinating study activities at the national level, in conjunction with all stakeholders. A detailed description of the institutional framework is provided in Technical Annex B3. Women as well as gender experts are encouraged to participate in this task force. Besides CoGes, DISC will be supported by a scientific advisory body comprising representatives of CEMAC, ADEA and AAU. At CoGes request, this scientific committee will contribute to implementing the study, depending on specific scientific needs. Similarly, in each country, the study will benefit from the support of the national focal point of poles of excellence appointed by the State. The focal points will conclude a performance contract with DISC to ensure the proper monitoring of study activities in their respective countries Procurement Arrangements Goods and services financed with ADF resources will be procured in accordance with Bank Rules of Procedure, namely Bank Rules of Procedure for Procurement of Goods and Works (May 2008 Edition, revised in July 2012) and Bank Rules of Procedure for the Use of Consultants (May 2008 Edition, revised in July 2012), using the relevant Bank standard bidding documents. However, given the participatory approach adopted (establishment of a PETU Regional Steering Committee, the work of national experts and the appointment of focal points) from the time the idea to establish PETUs was put forward and UNESCO s relevant competencies, an agreement will be concluded with this body for the implementation of the first phase of the study (inventory and assessment of candidate institutions) The Procurement Specialist of the Bank-funded ECCAS Institutional Capacity Building Support Project (PARCI-ECCAS) will assist DISC in procurement-related matters. PARCI-ECCAS has a procurement specialist with wide experience in Bank rules and procedures. The ToRs indicate that he/she is responsible for procurement in all Bank-funded projects in 11

20 ECCAS. He/she is also responsible for training colleagues in ECCAS who will be senior officers appointed by the Programme Budget Administration and Human Resources Department. The procurement of consultancy services will be through a shortlist. The procurement of goods needed to put in place the study team will be through prudent shopping. A procurement plan prepared for this purpose will be updated every eighteen (18) months. The details of procurement methods and review procedures are presented in Annex B Financing Arrangements Disbursement: ADF Grant resources will be disbursed in accordance with Bank rules of procedure in force. The direct payment and special account methods will be used to finance activities. A special account will be opened in a commercial bank and used to fund operating expenses and staff benefits. Goods, services as well as auditing costs will be paid using the direct payment method. The special account will be replenished based on justification of the use of 50% of the previous cash advance and 100% of earlier advances. The provision of evidence of opening the special account is a condition precedent to first disbursement Financial Management and Auditing: DISC will be responsible for the financial, administrative and accounting management of the study. Under the technical supervision of PARCI s administrative and financial officer, the accountant to be recruited will handle the bookkeeping of study activities and ensure that annual financial reports are prepared on time, in accordance with SYSCOHADA, the accounting principles of the Organization for the Harmonization of Business Law in Africa (OHADA). ECCAS Department of Social and Cultural Integration will prepare and submit the work programme and annual budget as well as the progress report and annual financial statements to the Bank for approval. The accounting software and procedures manual acquired by ECCAS under PARCI will be tailored to the needs of the study since PARCI s administrative/financial officer and the accountant have already been trained in its use. The annual audit of study accounts will be conducted by an approved independent accounting firm. ECCAS will submit the annual accounts audit report of the study to the Bank latest six months following the end of each financial year. 4.2 Study Monitoring and Evaluation The study will be implemented over a 25-month period, from December 2015 to December This schedule is deemed reasonable given the scope of activities to be implemented. In addition, the recruitment, with study resources, of a higher technology education expert and use of PARCI-ECCAS procurement specialist to support the study Executing Agency should help to reduce procurement timeframes and to properly monitor the implementation of study components The Higher Technology Education Expert will be responsible for the internal monitoring and evaluation of the study and logical framework indicators. As soon as the Grant Agreement is effective, a launching mission will be fielded to train members of the study implementation team in Bank procedures. Supervision missions involving the competencies required and Bank Field Offices in ECCAS member countries will be fielded at least twice a year. Quarterly progress reports will also be prepared based on the progress reports of national focal points and submitted to the Bank. Major indicative monitoring phases are presented in Table 4.1 below. 12

21 Table 4.1: Monitoring Phases and Feedback Loop Schedule Phases Monitoring Activities/Feedback Loop December 2015 Grant approval by the Board of Directors Notification of ECCAS General Secretariat January 2016 Grant effectiveness Signing of Grant Protocol Agreement January 2016 NGA and NSA UNDB; national and regional newspapers February 2016 March 2016 Fulfilment of conditions precedent to first disbursement Project launching Evidence of fulfilment of conditions submitted to the Bank Training of the project team; Launching of the initial activities; preparation of the work programme. March 2016 Implementation of activities Quarterly progress reports and audit reports May and November Supervision missions Supervision mission reports November 2016 Mid-term review Mid-term review report 31 December 2017 End of activities Audit report at project end Completion report June 2018 Last disbursement 4.3 Governance The study governance risks relate to procurement decisions, the use of study assets, the organization of validation workshops, and the performance of related tasks. The risks will be mitigated by preparing a detailed procurement plan as well as ensuring the rigorous selection of contractors, in accordance with Bank Rules of Procedure. Regarding the organization of various events, a control mechanism will be put in place for stakeholders. Compliance with these arrangements will be reviewed during supervision missions Concerning the financial governance of the study, the Executing Agency will keep separate accounts for the study using software that meet the Bank s management requirements. This will enable cost accounting and reporting, indicating expenditure by component, category and source of financing. The study accounts will be audited annually by an audit firm recruited for this purpose. Financial and audit reports will be submitted to the Bank within six months following the end of the accounting period. 13