ACTIVITY IMPLEMENTATION PROPOSAL TITLE AIP Ref. Development of Capacity and Framework at the ECOWAS Commission for monitoring investment climate WP2.28.1-1.008 Type of activity requested Regulatory Framework and SOE reform at Regional level WP Activity Item N 2.2 1. Study for ECOWAS Monitoring Investment climate 2. Organisation of a 2- day sensitisation workshop in Abuja (40 participants) Amount in Euro 115.750 93.952 Contingencies (1%) 2.097 Work Programme Region/country 2 Total Cost 211.799 ECOWAS Duration of Activity 6 months Sector Policy Frameworks PMU STE 1 assigned Francisco RAMIREZ Topic Type of intervention Service Trade and Investment Study & seminar Implementation modalities Nbre PMU STE 2 assigned PMU STE 3 assigned Description Service contracts 2 > Expertise for a study (including provision for travel cost of 2 ECOWAS Coordinators if required) > Organisation of 2 days training session for the ECOWAS Commission's staff & 2 persons from ECOWAS Member states Page 1 of 17
NAME OF THE REQUEST TITRE DE LA REQUÊTE REGION/COUNTRY CONCERNED PAYS OU REGIONS CONCERNES SECTOR CONCERNED SECTEUR OU THÈME CONCERNÉ Development of Capacity and Framework at the ECOWAS Commission for monitoring investment climate Economic Community of West African States Commission - ECOWAS Commission Upstream studies and Interventions on the enabling environment and State Owned Enterprises reform (Etudes en amont et interventions sur l environnement facilitant les affaires et l'amélioration du dialogue entre les secteurs public et privé) Support in the follow-up of recommendations (Actions de mise en œuvre des recommandations des études déjà réalisées). DATE OF THE REQUEST March 2008 SUMMARY OF THE INTERVENTION REQUESTED RÉSUMÉ In the course of 2008, BizClim has been requested by the ECOWAS Commission to develop an Investment Policy Framework and a Community Investment Code. Different studies have evidenced the weakness of the ECOWAS Commission regarding its own capacities and instruments to monitor the regional investment climate and thereafter to propose relevant policy reforms. Therefore, the proposed assignment is intended to: i) identify key indicators and build a monitoring system/tools of the investment climate ii) sensitize key stakeholders and prepare guidelines/recommendations for further improvement of the business environment. Page 2 of 17
NAME OF THE APPLYING ORGANIZATION: NOM DE L ORGANISATION ECOWAS Commission ADDRESS: (STREET, POST CODE AND COUNTRY) ADRESSE (RUE, CODE POSTAL ET PAYS) CONTACT PERSON: PERSONNE DE CONTACT FUNCTION OF THE CONTACT PERSON FONCTION EMAIL ADDRESS ADRESSE COURRIEL TELEPHONE TÉLÉPHONE FA FACCIMILE ECOWAS COMMISSION 101 Yakubu Gowon Crescent Asokoro District P.M.B. 401 Abuja, Nigeria Mr. Enobong Umoessien AG. Director Private Sector Department efumoessien@ecowas.int or enoecowasps@yahoo.com 00234(0)8051353682; 8039634517; 00234(9)3147647-9; 3147427-9 00234(9)3143005; 31477646 SKYPE (if any) PARTNER ORGANISATIONS: Please indicate the name of the partner organisations and contact person(s), including their email adresses Merci d indiquer le nom des organisations partenaires, des personnes de contact et leur adresses email Association of Investment Promotion Agencies of West African States (AIPAWAS) Stephen Amase, amase@nipc.gov.ng NEPAD Business Groups in Member States Nigeria: Mr. Goodie Ibru, ikejahotel@yahoo.com Côte d Ivoire: M. Guy M Bengue, biggy_ivccdi@yahoo.fr Regional and national business associations Page 3 of 17
HOW THE PROPOSAL IS LIKELY TO LEAD TO FOLLOW-UP ACTIVITIES? COMMENT LA PROPOSITION EST-ELLE SUSCEPTIBLE DE CONDUIRE À LA PRISE EN COMPTE DES RECOMMANDATIONS ET DE DEBOUCHER SUR LA MISE EN OEUVRE D ACTIVITES DE SUIVI? The ECOWAS Commission is committed to improve the business environment and the investment climate in the region. Various initiatives have been undertaken to this respect. The present project should lead to setting-up a regional database of information on the investment climate. Updates should be done on a regular basis with the support of the investment promotion agencies. Analyzing the information on investment climate should lead to an improved identification of the appropriate measures aimed at improving the investment climate. IS THE PROPOSAL CONSISTENT, COHERENT AND COMPLEMENTARY WITH OTHER INTERVENTIONS? EST-CE QUE LA PROPOSITION EST COHÉRENTE, CONSISTENTE ET COMPLÉMENTAIRE À D AUTRES INTERVENTIONS? EPLAIN TO WHAT ETEND THE PROPOSAL IS SUPPORTED BY KEY STAKEHOLERS? EPLIQUEZ DANS QUELLE MESURE LA PROPOSITION EST SOUTENUE PAR LES PRINCIPALES PARTIES PRENANTES? The ECOWAS Commission is currently developing with the support of BizClim a Policy Investment Framework and a Community Investment Code. In addition, the ECOWAS Commission has endeavored to develop a Community Competition Policy. Setting up a monitoring system of the investment climate is complementary to the above mentioned interventions and will help measuring their practical achievements. Moreover, the ECOWAS Commission is considering the possibility of undertaking a complementary project, aimed at setting-up a Non-Tariff Barriers Observatory, which will not overlap the proposed assignment. The ECOWAS Commission, the partner organizations, the Member States agencies involved, as well as West African Region private sector are strong supporters of the proposed assignment. Page 4 of 17
ACTIVITY INTERVENTION LOGFRAME SUMMARY OF THE INTERVENTION REQUESTED Résumé BizClim is currently supporting the ECOWAS Commission and the private sector of the West African Region in finalizing a regional Policy Investment Framework (PIF) and a Community Investment Act (CIA). The ECOWAS Commission is also currently in the process of developing a Community Competition Policy. With both major projects and other related internal research and training activities, the ECOWAS Commission is embarked in the implementation of the necessary steps aimed at preparing the West African Region for the EPAs and other Trade agreements. Moreover and according to its founding treaty, the ECOWAS Commission is seeking to make the West African Region a global competitive destination for domestic, communitarian and foreign investment, fostering sustained growth, social and economic development and poverty reduction in the Member States. Unfortunately, different studies have evidenced the weakness of the ECOWAS Commission regarding its own capacities and instruments to monitor the regional investment climate and thereafter to propose relevant policy reforms. Therefore, the proposed assignment is intended to facilitate the permanent and effective monitoring of the regional investment climate, aimed at ensuring its regular and sustained improvement, matching both parties, the ECOWAS Commission and the private sector expectations. The current project aims at defining a comprehensive framework where specific indices will be identified for monitoring the regional investment climate. The roles and responsibilities of the relevant agencies in maintaining the monitoring system and providing the necessary data will be clarified. The project also includes a capacity building component. Page 5 of 17
PROBLEM TO BE ADDRESSED : Problèmes à résoudre What is the specific problem which requires solution? The ECOWAS Commission is embarked into the improvement of the business environment in the region, notably through the preparation of a Policy Investment Framework, a Community Investment Code as well as a Community Competition Policy. In parallel, different studies have evidenced the weakness of the ECOWAS Commission regarding its own capacities and instruments to monitor the regional investment climate and thereafter to propose relevant policy reforms. Such efforts undertaken at regional level to harmonize policies and measures affecting the business and investment environment should hence be complemented by appropriate tools and systems measuring the impact of the initiatives taken and facilitating the identification and improvement of future interventions. The exercise should be conducted with a strong consultation of the private sector. Page 6 of 17
PURPOSE OF ACTIVITY: But de la proposition Who are the beneficiaries and how will they benefit? How will the results of the activity solve the problem(s)? By defining a monitoring system of the investment climate that will enable the ECOWAS Commission and each Member states measure the impact of their interventions, the stakeholders will be able to fine tune their strategies and approaches in improving the investment climate. In doing so, it is expected that the region will attract more investment at national, interregional and foreign levels, and in a sustainable way. The monitoring system will also gives the occasion to the ECOWAS Commission and its Member States to share strengths and best practices, to identify and use opportunities; and to identify and counter weaknesses and threats to the regional investment environment. The main purpose of this project is to facilitate a permanent, systematic and effective monitoring of the regional investment climate, aimed at ensuring its regular and sustained improvement, matching both parties, the ECOWAS Commission and the private sector expectations. A comprehensive framework should be defined, in which specific indices for monitoring the regional investment climate should be identified. All relevant agencies involved in the monitoring system should be identified and their roles and responsibilities clarified with respect to the transfer of information and analyse of data. The monitoring system should clarify the modalities for lifting, reporting, monitoring and managing data, as well as the actions required in terms of capacity building. EPECTED RESULTS : Résultats attendus What are the results expected from the activity? (one or more results will achieve the Purpose) The project should lead to setting-up a useful and easy-to-use monitoring framework where clear roles and responsibilities are defined for transferring, processing and analyzing data on the investment climate. The monitoring framework and relevant tools developed should be grounded upon existing indices of proven validity. The monitoring framework should establish a clear procedure for the consultation of the private sector. Page 7 of 17
RELATED PROGRAMMES AND OTHER DONORS ACTIVITIES: Autres programmes et activités Identify and describe the link, if any, between the proposed intervention and the activities and programmes of national/regional authorities and other sources of external assistance in the same sector. What is the added value or complementarities with the intervention requested? BizClim is currently supporting the ECOWAS Commission and the private sector of the West African Region in finalizing a regional Policy Investment Framework (PIF) and a Community Investment Act (CIA). The ECOWAS Commission is also currently in the process of developing a Community Competition Policy, for the instance by its own means. Therefore, the proposed assignment is intended to contribute to ensure the sustainability of the current process and maintain the competitiveness of the system to be established. Neither the ECOWAS Commission, nor the Partner Organizations or the Member States have undertaken other known related interventions. However, the ECOWAS Commission is considering the possibility of undertaking a complementary project, aimed at setting-up a Non-Tariff Barriers Observatory, which will not overlap the proposed assignment. The experts may build upon the experience acquired in the COMESA through project WP1.27.2-1.034. Page 8 of 17
OVI AND SOURCES OF VERIFICATION : Indicateurs vérifiables et sources What is the quantifiable evidence of the results? Project objective(s) / Objectif global Project purpose / Objectif spécifique Results / Résultats Objectively Verifiable Indicators (OVI) Indicateurs objectivement vérifiables (IOV) Sources Kick-off meeting Minutes of the meeting Consultant Study and design of the framework and tools Report of the study Consultant Validation meeting Minutes of the meeting Consultant Implementation and delivery Report and minutes Consultant and ECOWAS Training Workshop Report of the training Number of people trained Consultant Page 9 of 17
ACTIVITIES : Activités What are we / they planning to do? If any workshop/seminar, please indicate the number and type of participants expected Si un atelier/séminaire est organise, merci d indiquer le nombre et le type de participants attendus The implementation of the proposed assignment will evolve around the following main activities: 1. Identify the key determining indices of the investment climate in West Africa. Based upon existing indices and index at international, regional and local level, the experts will assess the validity of the information. A kick-off workshop will be organized to agree on the methodology and sensitize key stakeholders (Member states, private sector representatives, UEMOA). 2. Develop a monitoring framework and appropriate tools. The tools and monitoring framework will be designed in a pragmatic manner, using information available or easily produced. The experts may build upon the experience acquired in the COMESA through project WP1.27.2-1.034; 3. Develop the modalities/procedures for the monitoring exercise involving the ECOWAS Commission and Member States. Clear roles and responsibilities will be defined for all stakeholders in the provision, processing and analyze of information. The monitoring framework should establish a clear procedure for the consultation of the private sector, notably in view of the network of chambers of commerce being currently established with the support of the European Commission. Sensitization 4. Organize a Validation meeting in Abuja with key stakeholders. The meeting is expected to take place at ECOWAS Commission s headquarters. 5. Finalize the monitoring framework, tools and procedures in the light of the discussions; 6. Organize and undertake a 2-day sensitisation workshop in Abuja for 40 participants to train 8 ECOWAS Commission s staff and 32 Member States (2 each) on the use of the framework/tools. The workshop will be used to lift information from relevant agencies and posts in the region. 7. Translate the information collected during the workshops into policy advice to support reforms in the business climate. Page 10 of 17
Inputs: Inputs Indicate the required working days per expert, travel and per diem Indiquer la répartition des jours de travail par experts, les voyages et les per diem Workload (including travel days) 1 Expertise 2 3 Total expertise Intern. Travel Regiona l travel Per diem CAT1 CAT2 CAT2 1. Identification of the key determining indices of the investment climate in West Africa 2. Development of a monitoring framework and tools 3. Development of the modalities/procedures for the monitoring exercise involving the ECOWAS Commission and Member States 4. Validation meeting in Abuja with key stakeholders 5. Finalize the monitoring framework, tools and procedures in the light of the discussions 6. 2-day sensitization workshop of ECOWAS Commission s staff and Member States on the use of the framework/tools & collect of information 7. Translating them into policy advise to support reforms in the business climate 8 7 15 2 2 15 8 5 10 23 7 5 4 16 4 3 3 10 3 6 4 3 3 10 6 6 6 18 3 13 5 4 9 TOTAL 42 33 26 101 8 2 34 Page 11 of 17
BUDGET : BUDGET What resources will be required for the planned activity (manpower, materials, timing etc)? Who will implement them? Title Unit Quant. Unit price Total Sub-total by contract (euros) (euros) (euros) 1. Study for ECOWAS Monitoring Investment climate 115.750 - Fees Team leader - Cat I m/days 42 900 37.800 - Fees Financial Expert - Cat II m/days 33 750 24.750 - Fees Computer Expert - Cat II m/days 26 750 19.500 - Per diem Experts nights 34 250 8.500 - International Travel Experts Return 8 1300 10.400 - Regional Travel Experts Return 2 800 1.600 - Output/Report: drafting & dissemination (including 2-day workshop) and translation Lump sum 1 5000 5.000 Implementation modalities 1 Service contract - Provision for meetings (kick-off workshop, validation, other) Lump sum 1 2000 2.000 2. Provision for specific expenses if required ECOWAS coordinators (2) (x2) - Per diem nights 12 250 3.000 - Regional Travels Return 4 800 3.200 2. Organisation of a 2-day sensitisation workshop in Abuja (40 participants) - Fees contractor 1 19000 19.000 93.952 1 Service contract - Reimbursables - Perdiem night 96 272 26.112 - Regional travel Return 32 800 25.600-10% contingency for reg. travels 2.560 - Conference venue & equipment Lump sum 1 2500 2.500 & additional premises - Refreshments & coffee breaks Per person 80 20 1.600 - Lunches (1) Per person 16 30 480 - Visibility (media, brochures, ) Lump sum 1 5000 5.000 - Translation & interpretation Lump sum 1 6000 6.000 - Cocktail (closure) Per person - Information Kit, Badges & Preparation 40 20 800 Per kit 40 20 800 - Other (insurances, host/hostesses, moderators, local transport, inter-city transport, invitations, etc) Total without contingencies Lump sum 1 3500 3.500 209.702 OK Contingencies (1%) 2.097 TOTAL 211.799 Page 12 of 17
Notes clarifying the budget: 1/ For participants not entitled to receive per diem i.e. those whose place of residence is in the city where the workshops will take place. 2/ The travel costs and daily allowance of 2 ECOWAS coordinators may be taken in charge under the project to avoid any delay * * * ASSUMPTIONS : Hypothèses What external variables could prevent the activity going ahead on time and/or if it does go ahead as planned, what external variables could stop a successful outcome (the result)? The successful implementation of the project depends notably upon the realization of the following assumptions: The combined effort of the ECOWAS Member States to attract investment at national level affects the overall regional investment climate and Member States are willing to adjust policies, procedures, regulations and actions to improve the overall regional investment climate. The ECOWAS Member States policies and strategies to promote investment at national level are inconsiderate of the regional contagion effect as nationalistic priorities are considered superior to the overall regional interest. IMPLEMENTATION MODALITIES: Number and types of contracts foreseen 1 Service contract for the design of the Framework and Tools for Monitoring the Investment Climate and for the organization of the Training Workshop. In the service contract, provision will be made to possibly cover the expenses of 2 ECOWAS coordinators to accompany the experts during their mission in the region. Specific request will be required from part of the ECOWAS Commission. Page 13 of 17
IMPLEMENTATION PLAN TIMETABLE Activity Activité Month Mois 1. Identification of the key determining indices of the investment climate in West Africa 2. Development of a monitoring framework and tools Approval by BizClim 3. Development of the modalities/procedures for the monitoring exercise involving the ECOWAS Commission and Member States Approval by BizClim 1 2 3 4 5 6 4. Validation meeting in Abuja 5. Finalize the monitoring system, tools and procedures 6. 2-day sensitization workshop of ECOWAS Commission s staff and Member States on the use of the framework/tools & collect of information 7. Translating them into policy advise to support reforms in the business climate Approval by BizClim (Main Deadlines in calendar months) 8. Closure of project Month 1: December 2008 Page 14 of 17
ADDITIONAL COMMENTS FROM THE EPERT WHO ASSESSED THE REQUEST: Commentaires et remarques de l expert The ECOWAS Commission is considering the possibility to undertake a complementary project, aimed at setting-up a Non-Tariff Barriers Observatory. Such a project will not overlap the proposed assignment, as this is intended to cover the regional investment climate as a whole and not specifically the inter-regional non-tariff barriers to trade. ADDITIONAL COMMENTS FROM THE BENEFICIARY/ Commentaires et remarques de l expert ADDITIONAL COMMENTS FROM THE RELATED DELEGATIONS OF THE EUROPEAN COMMISSION: Commentaires et remarques des Délégations de la CE concernées EC Delegation in Guinea Bissau : 1. Perhaps more emphasis could be given on EPAs 2. How participants from each country will be selected? Via GOV or via the Private Sector (i.e. Trade Chambers and the like)? 3. Are the translations going to be available in Portuguese language (or just EN and FR)? EC Delegation in Ghana : 1. There is no need to develop specific indices for the ECOWAS region but rather to assess the validity of the information provided in the context of these existing indices 2. It would be useful to foresee a period for reflection/dialogue and decision on the monitoring framework before developing the tools 3. It is not clear what is expected under the result "delivery of the state of art procedure for the monitoring exercise" 4. Based upon remarks (1), the training may be postponed until monitoring tools have been developed and tested All elements have been taken into account into the present AIP EC Delegation in Sierra Leone: Facilitating the effective monitoring of the investment climate in order to sustain its improvement is a necessary step to take for the ECOWAS region especially as, in countries like Sierra Leone, this monitoring capacity is weak and would greatly benefit from a regional effort in this respect. The proposed production of a specific framework and indices for monitoring of the regional investment climate is therefore a welcome proposal. We trust you will ensure the sustainability and effective implementation of this interesting project Page 15 of 17
in the long-run. EC Delegation in Nigeria: 1. The proposal is interesting and is worth being financed; 2. The EC Delegation is in close contact with the ECOWAS Commission to identify the projects that may be financed under the financing agreement; 3. Among others, one of the projects consisted in setting up a network of chambers of commerce at regional level. A dialogue mechanism should be established in order to help adopting, implementing and monitoring this monitoring system; 4. The EC Delegation would appreciate to be kept informed about the progress made in order to define how to best contribute to this regional initiative. Element (3) has been taken into account into the present AIP EC Delegation in Mali Concernant la mise en œuvre des activités du projet - mise en place d'un cadre régional d'investissement et d'un acte communautaire d'investissement - la DCE souhaite souligner qu'il est important de prévoir une concertation approfondie avec les pays (ou certains pays pilotes) et la commission de l'uemoa aussi bien dans la phase d'identification des principaux éléments du climat des investissements, que dans la phase de validation. Page 16 of 17
DECISION OF THE VALIDATION COMMITEE Implementation approved 12/11/2008 Comments and remarks from the Validation Committee None Implementation rejected Reason(s) for rejection Name-Position EC/AIDCO/C4 Signature Date Name-Position DG/DEV Signature Date Name-Position ACP SECRETARIAT Signature Date Name-Position ACP SECRETARIAT Signature Date Page 17 of 17