AFRICAN DEVELOPMENT FUND

REGIONAL

GRANT SUPPORT TO THE AFRICAN CAPACITY BUILDING

FOUNDATION (ACBF) FOR THE STRATEGIC MEDIUM TERM PLAN

(SMTP) III

EADI/GECL

February 2014

TABLE OF CONTENTS

I – STRATEGIC THRUST & RATIONALE ........................................................................... 1

1.1. Project linkages with country strategy and objectives ................................................... 1

1.2. Rationale for Bank’s involvement .................................................................................. 2

1.3. Donors coordination ....................................................................................................... 3

II – PROJECT DESCRIPTION ................................................................................................ 4

2.1. Project rational……………………………………………………………….………...4

2.2. Project objectives and components ............................................................................... .6

2.3. Technical solution retained and other alternatives explored .......................................... 9

2.4. Project type ................................................................................................................... 10

2.5. Project cost and financing arrangements ...................................................................... 10

2.6. Project’s target area and population ............................................................................. 12

2.7. Participatory process for project identification, design and implementation ............... 12

2.8. Bank Group experience, lessons reflected in project design ........................................ 12

2.9. Key performance indicators ......................................................................................... 13

III – PROJECT FEASIBILITY ............................................................................................... 13

3.1. Economic and financial performance ........................................................................... 13

3.2. Specific required feasibility and technical studies…………………………………….13

3.3. Expected/design cross-cutting focus/benefits………………………………………...13

IV – IMPLEMENTATION ..................................................................................................... 14

4.1. Implementation arrangements ...................................................................................... 14

4.2. Procurement and financial management arrangements ………………..……………..14

4.3. Monitoring ................................................................................................................... 15

4.4. Governance ………………………………………………………………………. ….16

4.5. Sustainability ................................................................................................................ 16

4.6. Risk management ......................................................................................................... 17

4.7. Knowledge building ..................................................................................................... 17

V – LEGAL INSTRUMENTS AND AUTHORITY .............................................................. 18

5.1. Legal instrument ........................................................................................................... 18

5.2. Conditions associated with Bank’s intervention .......................................................... 18

5.3. Compliance with Bank Policies ................................................................................... 18

VI – RECOMMENDATION .................................................................................................. 18

ANNEXES

Annex I - Map of the Project Area.

Annex II - Key lessons learned in implementing AFDB/in partnership with ACBF

Annex III - Implementation, Monitoring and Evaluation of SMTP III

Annex IV- Financial Management, Disbursement and Audit Arrangements,Accounting,

Recording, Reporting and Internal Countrol Systems

Annex V - Procurement Arrangements

Annex VI - List of Confirmed Pledges for ACBF SMTP III Implementation

Annex VII - Summary of Pledges to SMTP III (2012-2016) as of July 2013

Annex VIII - Project Timeframe

i

Currency Equivalents As of July, 2013

1 United States Dollars (USD) = 0.64471 Unit of Account (UA)

1 Unit of Account (UA) = 1.5413 United States Dollars (USD)

Fiscal Year

January 1 - December 31

Weights and Measures

1metric tonne = 2204 Pounds (lbs)

1 Kilogramme (kg) = 2.200 lbs

1 metre (m) = 3.28 feet (ft.)

1 millimetre (mm) = 0.03937 inch (“)

1 kilometre (km) = 0.62 mile

1 hectare (ha) = 2.471 acres

ii

Acronyms and Abbreviations

ACBF African Capacity Building Foundation

ECA

ACI /ACIR

ADF

AfDB

AFREXIM

AGO

AUC

Economic Commission for Africa

Africa Capacity Indicators / Report

African Development Fund

African Development Bank Group

Africa Export-Import Bank

African Governance Outlook

African Union Commission

AusAID

CDS

Austria AID

Capacity Development Strategy

CEMAC

CPI

COMESA

EADI

ECAS

ECOWAS

IDRC

IMF

KMDS

KPI

MAP

MDGs

MEFMI

M&E

MTS

NEPAD

NILS

NPCA

PAR

PAFTRAC

PCR

PEFA

REC

RIT

RMC

RMF

SMTP

RPG

STI

“Communautés Economique et Monétaire des Etats de l’Afrique Centrale”

Corruption Perception Index

Common Market for Eastern and Southern African Countries

African Development Institute

Economic Community if Central African States

Economic Community of West African States

International Development Research Center

International Monetary Fund

Knowledge Management and Development Strategy

Key Performance Indicator

Management Action Plan

Millennium Development Goals

Macroeconomic and Financial Management Institute

Monitoring and Evaluation

Medium Term Strategy

New Partnership for Africa’s Development

Nigeria Institute for Legislative Studies

NEPAD Planning and Coordinating Agency

Project Appraisal Report

Pan African Private Sector Trade Policy Committee

(iii)

Project Completion Report

Public Expenditure and Financial Accountability assessments

Regional Economic Community

Regional Integration and Trade

Regional Member Country

Results Measurement Framework

Strategic Medium Term Plan

Regional Public Goods

Science, Technology and Innovation

TTI

UNDP

UNECA

Think Tank Initiative

United Nations Development Program

United Nations Economic Commission for Africa

iii

Grant Information

Client’s information

BORROWER: African Capacity Building Foundation (ACBF)

EXECUTING AGENCY: African Capacity Building Foundation (ACBF)

Financing plan (2013-2014)

Source

Amount (UA)

Instrument

ADF 3 million Grant

World Bank 25.95 million Grant

African Governments 6.70 million Grant

Sweden 2.59 million Grant

Uus AID**/ 0.078 million Grant

Financing Gap* 6.45 million

TOTAL COST 44.77 million

Total pledged for the 5 years: World Bank UA 64.88 million; African Governments: UA 16.77 million; Sweden UA 6.48 million; Austria AID UA

2.00 million. * Other bilateral partners have confirmed their intention to pledge to SMTP III for 2013 and 2014. ** Austria AID

ADB’s key financing information

Grant currency UA

Interest type NA

Interest rate spread NA

Commitment fee NA

Other fees NA

Tenor NA

Grace period NA

FIRR, NPV (base case) NA

EIRR (base case) NA

Timeframe - Main Milestones (expected)

Concept Note approval November 2012

Project approval December 2013

Effectiveness December 2013

Last Disbursement November 2014

Completion December 2014

Last repayment Not applicable

iv

Project Summary

1. Project Overview: The project constitutes the Bank Group’s contribution to the core functions

of the African Capacity Building Foundation (ACBF) in implementing its third Strategic Medium-

Term Plan (SMTP III) (2012-2016), and for the Foundation to serve as an Implementing Agency

on capacity building programs for various Bank Group Departments. The overall goal of SMTP

III is to build capacity of regional member countries (RMCs) and regional economic communities

(RECs) for effective governance systems, which translate into poverty reduction. The expected

outcomes are: (i) improved economic and financial integration policy formulation and

implementation; (ii) improved transparency and accountability in the management of public

resources in Africa; and (iii) improved intra-regional trade and share of African economies in

global trade.

2. The African Development Fund (ADF) Regional Public Goods grant will support achievement

of the overall objectives of ACBF/SMTP III. The project will enable ACBF assist in promoting

stability and good governance across RMCs by: scaling up transformative change in reformer

states; providing targeted support to countries emerging from conflict; helping RMCs and RECs

improve policies and regulations concerning the productive sector, and regional integration. The

project cost is UA 3 million (USD 4.6 million) as Bank Group’s contribution for the 18-month of

the five-year SMTP III implementation period.

3. Beneficiary Participation / Needs Assessment: The SMTP III builds on the two previous five-

year rolling strategic plans (SMTP I and II) and is therefore designed based on lessons learned in

ACBF’s capacity building activities in Africa over the past 20 years. ACBF also conducted

extensive public consultations among key stakeholders of the region’s development agenda,

namely: African governments, regional institutions and the private sector; development agencies

such as the Bank Group, the World Bank, the International Monetary Fund (IMF) and the United

Nations Development Program (UNDP) that are the multilateral partners of the Foundation; and

non-African governments and bilateral donors.

4. Project Rationale: SMTP III focuses on capacity building in areas such as stability and good

governance environment for an inclusive growth, performance of productive sectors and regional

integration, which are critical for transforming African economies. The project will help improve

ability of RMCs to sustain recent rapid economic growth, democratic gains and social stability

even in periods of uncertainty, through sound policy formulation. These areas are important for

achieving the objectives of the Bank Group’s Capacity Development Strategy (CDS), particularly

its Pillar 2, i.e., Strengthen RMCs’ capacity for policy dialogue on key development issues. The

project advances the CDS by partnering with ACBF to deliver high quality interventions on its

behalf, in assisting RMCs and RECs on their capacity building programs. The grant will also

enable the Bank strengthen its partnership and collaboration with ACBF to help develop regional

public goods on capacity building.

5. Bank’s Value-Added: The project is one of the ways in which the Bank Group is practising

some of the donor-agreed frameworks for delivering development assistance, such as donor

harmonization. In delivering capacity building programs through a regional institution like ACBF,

Bank Group’s contribution will be leveraged with funding from other members of the Foundation,

including several African and non-African Governments and multilateral development and

finance institutions. The project will also enable the Bank Group to share its experience with key

regional institutions through partnerships and financing because no individual institution is in a

position of providing the full capacity building support that RMCs and RECs need to make

transformative change. The Bank Group, through EADI, will supervise the project and bring its

knowledge, expertise and experience to improve the

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implementation capacity of ACBF. The Bank Group is also a member of the Executive and

Governing Boards of ACBF and can use these positions to improve implementation of the project,

beyond routine Bank Group project supervision approaches.

6. Knowledge Management: The project will generate knowledge in form of implementation

reports, evaluation reports, quarterly project review reports, completion reports, analytical studies

and associated reports, and case studies. These documents and knowledge will be disseminated at

national, regional, and international levels through seminars and discussion forums as well as

presented within the Bank Group as good practices. Based on lessons learned, ACBF and the

Bank Group will improve design and implementation of its financed capacity building projects.

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Result-based Logical Framework

Country and project name: Regional – ADF Grant Support to the African Capacity Building Foundation (ACBF) for the Third Strategic Medium Term Plan (SMTP III, 2012-2016)

Purpose of the project: Capacity building of African countries and regional institutions on effective governance for real poverty reduction on the continent

RESULTS CHAIN

PERFORMANCE INDICATORS

MEANS OF VERIFICATION RISKS/MITIGATION MEASURES

Indicator

(including CSI)

Baseline

(Sept 2012)

Target

(2016)

IMP

AC

T

Impact

Effective governance in regional member countries and regional institutions that translates into real

poverty reduction in Africa

1. Average real GDP growth rate for the region

2. MDG 1.a: Reduce Income Poverty

5%

44.0%

7%

Reduced to 41.0%

1. AfDB/IMF/World Bank data

2. UNDP MDG Country Reports

Risk: Funding volatility and insufficiency

Mitigation: Commitments and pledges have

been secured; Additional co-financing to be

sourced for individual projects

OU

TC

OM

ES

Outcome 1

Improved economic and financial integration policy

formulation and implementation

1. Improved Africa Capacity Indicators (ACI) to track policy impact on

development outcomes

1ACIR 4ACIR

1. ACBF Annual Reports

Risks:

1. SMTP III in fragile and post-conflict states

will be constrained by several factors, including weak human resources.

2. ACBF is headquartered in Harare, Zimbabwe. This may pose some risk due to political

uncertainty in the country.

Mitigation:

1. Project implementation will draw lessons from the growing body of work on doing

business in fragile states.

2. The project will be implemented in

partnership with national and other regional institutions, which will ensure sustained

program delivery and devolution of management

during crisis.

Outcome 2

Improved transparency and accountability in the

management of public resources in Africa

No. of countries rated with more than 3.9

on the Corruption Perception Index (CPI)

for transparency, accountability and corruption in public sector

7 10 Transparency International

Corruption Perception Index

(CPI)

RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF RISKS/MITIGATION MEASURES

vii

Indicator

(including CSI)

Baseline

(2012)

Target

(by 2014) VERIFICATION

OU

TP

UT

S

Output 1:

1.1: Economic and financial analysis, forecasting, and

results-based management for improved regional

integration

Output 2

2.1: Regional policy frameworks developed for the

management of public-private partnerships, especially

for complex cross-border infrastructure

Output 3

3.1 Financial governance systems strengthened for

financial integration

1.1.1 No. of institutions trained on regional

integration policy modelling and forecasting,

including using gender-sensitive parameters

2.1.1 No of RECs assisted to develop policy

frameworks for the management of public-

private partnerships

3.1.1 No. of published Africa Governance

Outlook (AGO) country reports

3.1.12 Publication of consolidated report

summarizing findings from the 10 AGO

country reports

0

0

0

0

12

2

10

1

ACBF Data / Reports

ACBF Data / Reports

Reports published

Report published

Risks: Programming areas may be too many, requiring

a high level of funding in a difficult economic

environment of donor partners.

Capacity to deliver robust political economy

analysis and ensure reports of the highest quality.

Mitigation:

If necessary, ACBF will make further

prioritization and reallocation of resources to

key deliverables and reduction of overhead cost without affecting the project development

outcomes.

Develop a detailed work plan/budget to deliver

the AGO reports. In addition, it is recommended

that ACBF work with AfDB field offices to identify strong consultants who are able to guide

Teams undertaking the political economy

analysis.

KEY

AC

TIV

ITIE

S

COMPONENTS INPUTS

Component 1: Improving economic and financial governance in support of regional integration policy formulation and implementation

ACBF capacity building support to RMCs and RECs will aim at strengthening the enabling environment and make it prone to the formulation and implementation of regional integration policies. Activities will include: 1.1. Improving macro-economic policy modelling and forecasting at sub-regional level (MEFMI) 1.2. Supporting the formulation of policy options for sub-regional economic analysis and governance reforms (NILS) 1.3. Strengthening policy formulation and implementation capacity of RECs on regional integration and trade (RIT) (MEFMI &NILS) 1.4. Supporting research on innovative methods of financing sub-regional infrastructure development especially in energy and transport (MEFMI) 1.5. Supporting the development of regional policy frameworks for public-private partnerships (MEFMI)

Component 2: Improved transparency and accountability in the

management of public resources in Africa

Working with the RECs, ACBF will support RMCs in improving their governance systems thus paving the way for effective financial integration of African economies through the implementation of the AGO in 10 countries to uncover financial governance needs in RMCs.

* The projected increased GDP (PPP) growth rate from 5% to 7% is according to global statistical economy institutions, for example, Economy Watch: “From 2012 to 2016, Africa's GDP (PPP) for Africa will grow by an average of 7% annually. By 2016, the continent's GDP (PPP) will be US$4.88 trillion, an overall growth of 45.5 % over 5 years.” <http://www.economywatch.com/world_economy/africa/economic-forecast.html>

<http://www.economywatch.com/economic-statistics/year/2016/>. Baseline figure obtained for Africa’s intra-regional trade as a percentage of the continent’s total trade was obtained: Mwangi S. Kimenyi, Zenia A. Lewis and

Brandon Routman, Introduction: Intra-African Trade in Context. Brookings Africa Growth Initiative.

1

ADF PUBLIC GOODS GRANT SUPPORT THE AFRICAN CAPACITY BUILDING

FOUNDATION FOR THE THIRD STRATEGIC MEDIUM TERM PLAN (SMTP III)

Management submits the following Report and Recommendation on a proposed grant for UA

3.00 million (USD 4.6 million) to the African Capacity Building Foundation (ACBF, or the

Foundation) for implementing the first two years of the Third Strategic Medium Term Plan (SMTP

III): 2012-2016. The grant will also enable ACBF serve as Implementing Agency in capacity

building programs with various Departments of the Bank Group over the 18-month period of the

project.

I – STRATEGIC THRUST & RATIONALE

1.1 Project linkages with Bank Group strategy and objectives

1.1.1 Support to ACBF’s SMTP III implementation is in alignment with Bank Group’s Capacity

Development Strategy (CDS): 2010-2014. The Bank Group places emphasis on capacity building of

RMCs/RECs, as the CDS noted that, “no matter the amount of financial resources mobilized for

Africa’s development, such funds would yield only limited or modest results if countries do not have

the human, organizational and institutional capacity to absorb and effectively utilize them.” Bank

Group’s strategy to address the region’s capacity deficit places emphasis on programs that help

Strengthen RMCs’ capacity for policy dialogue on key development issues, which constitutes the

second pillar of the CDS.

1.1.2 The Bank Group also emphasizes that, no individual institution is capable of providing the

extent of capacity building support required by RMCs and RECs to sustainably undergo the

necessary transformations. In implementing the CDS, Bank Group therefore aims to build partnership

with national and regional capacity development institutions, which are able to deliver high quality

interventions on its behalf, and do so more quickly, have greater impact, reach a larger target

audience and in a more cost-effective manner than the Bank Group could achieve on its own. The

Bank Group is a founding member of ACBF and has supported the Foundation in implementing the

preceding SMTPs I and II, which have helped build capacity of regional member countries (RMCs),

regional economic communities (RECs) and other organizations in Africa over the past 20 years.

1.1.3 SMTP III focuses on capacity building areas that are in line with the Bank Group’s Long-Term

Strategy (LTS) (20013-2022) and critical for transforming African economies. Some of the key areas

SMTP III will address include stability and good governance for inclusive growth, performance of

productive sectors and youth employment, and regional integration and Africa’s participation in

world trade. Capacity building is also in line with the Bank Group’s Regional Integration Strategy

(RIS): 2009-2013. The Bank is developing a new RIS for the period 2013-2022 aligned to the Bank

Group’s Ten year Development Strategy and capacity building is likely to be a core part of the new

RIS.

1.1.4 Regional integration is deepening and maturing across Africa led by the Regional Economic

communities (RECs) such as CEN-SAD, ECA, ECCAS, ECOWAS, COMESA, IGAD, SADC, and

UMA, resulting in the creation of a large more integrated cross-border regional markets for goods,

services and labour through initiatives such as the Tripartite Free Trade Area involving COMESA,

ECA and SADC and the larger Continental Free Trade Area (CFTA). This requires creation

capacities at various levels to enable countries better manage the new economic arrangement as well

2

as providing platforms for result-driven public-private dialogue and partnership to create the enabling

environment for competitive and inclusive economic growth.

1.2 Rationale for Bank Group’s involvement

1.2.1 This proposal seeks to secure an ADF grant of UA 3 million from the Regional Public Goods

(RPG) instrument to support the ACBF in implementing its SMTP III over the first 18-months. In

addition, the grant, which is in response to a request from the Foundation, will enable ACBF to serve

as an Implementing Agency on capacity building programs of various Bank Group Departments for

the benefit of ADF-eligible countries. For all of the cases where ADF RPG resources are used under

the proposed project, activities in non-ADF countries will be financed from ACBF resources

contributed by other donors, such as bilateral development agencies and African Governments.

Although the request for support by ACBF is based on a five-year program, the detailed breakdown

for the requested support from the Bank Group and other donors is based on 18 months. The SMTP

III was approved in February 2011 by ACBF’s Board of Governors, which includes the Bank Group

as a founding member of the Foundation. The project is aligned to Bank Group’s CDS, and the

KMDS. The Bank Group has contributed UA 25.25 million in support of ACBF’s capacity building

activities in RMCs and RECs over the past 20 years, including funds for implementing SMTP II (UA

7.54 million in 2010) and SMTP I (UA 10.29 million).

1.2.2 The Bank Group has completed the Project Completion Report (PCR) concerning SMTP I

and found that the funds were fully disbursed by ACBF. Bank Group’s grant to ACBF for SMTP II

implementation closed at the end of December 2011, and the PCR is completed. Implementation and

resource utilization were on track to achieve project objectives. The PCRs covering SMTP I and II

rated overall achievement of outcomes as “good”. The report observed that, ACBF succeeded in

improving policy-making processes, particularly through establishment of 35 policy think tanks, and

this impact went beyond the core public sector to non-state actors. The think tanks have helped

improve evidence-based policy-making and deepened dialogue among government, donors, civil

society and the private sector. Seven of the think tanks supported by ACBF were among 24 African

institutions that received the William and Flora Hewlett Foundation and the Bill and Melinda Gates

Foundation Think Tank Initiative (TTI) Grant totalling US$ 30 million in 2009. The PCRs also

reported that ACBF was successful in building capacity of institutions for financial management and

accountability, which has allowed key ministries, central banks and agencies to improve the skills

and competencies of their staff and even helped to transform some into centres of excellence that

produced qualified economists for the continent. ACBF was also given a “good” outcome rating on

enhancing its visibility and convening power, and that clients recognize its importance, as reflected in

its ability to attract funding from several donors.

1.2.3 The Foundation, through SMTP III, is important to the Bank Group’s capacity building

strategies and the region’s development amid intensifying globalization and complexity in world

trade. The project will enable Bank Group strengthen its partnership with a reputable regional

institution that can deliver high quality interventions on its behalf, thereby enabling Bank Group

move away from a ‘retail’ to ‘partial wholesale’ approach of capacity building in RMCs and RECs.

ACBF has received Bank Group’s technical assistance to improve on its internal organizational

capacity and has implemented previous stages of the SMTP (I and II) to the satisfaction of the Bank

Group, as captured in the PCR of SMTP I and SMTP II. The requested level of financing is premised

on fact that: (i) Scaled-up capacity in Africa will undoubtedly enhance effectiveness of Bank Group

portfolios in RMCs; (ii) Capacity development needs to be scaled up to cater for the growing needs

of African countries for the knowledge and skills development that will allow them to transform their

3

economies; (iii) ACBF is a pan-African regional organization contributing to public goods in Bank

Group’s RMCs; and (iv) African countries and institutions need to play an increasing role in the

financing of African regional organizations and African governments have already set the tone in that

direction by making funding pledges to the Foundation’s SMTP III that are in some cases six-fold

their previous levels.

1.2.4 ACBF’s specialization, objectives for the SMTP III, outputs, products, services and the

approaches to be used reinforce and add value to the Bank Group’s focus areas and mechanisms for

capacity building in RMCs and RECs. For example, the Foundation’s flagship report, Africa

Capacity Indicators Report (ACIR), which is in its third year of production, is contributing to more

effective measurements of capacity and policy impacts in key sectors, such as natural resource (ACIR

2013), agriculture (2012) and governance (ACIR 2011) in several RMCs.

1.2.5 The Foundation has also adopted innovative models for human and institutional capacity

building in Africa. The core models involve: (a) Provision of grants and technical assistance to build

capacity of government and non-state actors at national and regional levels; and (b) Knowledge and

learning activities under which ACBF conducts research activities on emerging development issues

and publishes results through Occasional Papers and books. Under the provision of grants and

technical assistance, ACBF’s competencies are: (i) economic policy analysis and management; (ii)

financial management and accountability; (iii) public administration management; (iv) strengthening

national statistical capacity; (v) strengthening policy analysis of national parliaments; and (vi)

professionalization of the voices of the civil society and the private sector. The later intervention

includes professionalization of the voices of civil society include the early support given to the

African Peer Review Mechanism process through technical advice and advocacy to mobilize the

voices of civil society. ACBF also organizes high-level forums as part of the knowledge and learning

activities, which bring together decision-makers, researchers, academics and other development

actors to find solutions to emerging development issues.

1.2.6 In addition, ACBF will serve as an Implementing Partner for several capacity building

programs of Bank Group Departments, such as : (i) development of results tracking methodologies

and management of the knowledge sharing component of the African Communities of Practice

(AfCoP) program; (ii) the African Governance Outlook (AGO) program; (iii) policies on regional

integration and trade, taking the “Communautés Economique et Monetaire des Etats de l’Afrique

Centrale” (CEMAC) countries as pilot, with the potential for expansion to other sub-regions; (iv)

policy formulation and implementation in support of Bank Group’s new Human Capacity Strategy

(science, technology and innovation capacity and youth employment creation); and, (v) other Bank

Group’s capacity building activities, in collaboration with or on behalf of EADI.

1.3 Donors’ coordination

1.3.1 ACBF is effective in coordinating and leveraging donor resources. Various donors contributed UA 102.91 million for implementation of SMTP II (2007-2011) of which the Bank Group’s UA 7.54

million amounted to 3.43% of the total amount. The Foundation was established in 1991 as a

partnership between African governments and the international donors’ community to provide long-

term support for capacity building. The Bank Group, the United Nations Development Program

(UNDP) and the World Bank constitute ACBF’s sponsoring agencies. The other multilateral partner

is the International Monetary Fund (IMF). Other members of the ACBF partnership include 38

African governments and 13 non-African governments. The members provide grants, technical

4

assistance and other forms of support to ACBF to deliver capacity building activities in RMCs and

RECs. ACBF has operations in at least 45 African countries, but reaches all other countries in the

region through its knowledge-sharing platform and advisory services.

Table 1 : Donor commitments and expected pledges to ACBF for SMTP III implementation for the period 2012-

2016 (US$ millions) As of July 2013

Donor category Planned Commitments 2012–2016

Total %

African Development Fund (ADF)* 50.160 23.0

Other AFDB financing** 11.573 5.3

World Bank 100.000 45.9

Sweden 10.000 4.6

AusAID 3.069 1.4

African Governments 25.850 11.9

Other Sources (Financing Gap)*** 17.347 7.9

Total **** 218.000 100.0

Source: ACBF. * ACBF request to the Bank Group for a five-year support in implementing the SMTP III (Annex 3). ** AFDB/Nigeria Trust Fund (650.000); AfCOP (2.860.000); Zimbabwe Program (8.063.000). *** Based on confirmed pledges as at end of April, 2013. ****Based on the base

case scenario.

1.3.2 As of July 2013, the members of Foundation have pledged USD 200.652 million to the ACBF

Trust Fund toward implementing the current five-year SMTP III, and several members have

indicated their intentions to make additional or new contributions. The pledges / contributions for

SMTP III so far include USD 100 million from the World Bank, USD 10 million from Government

of Sweden and USD 25.850 million from African Governments. ACBF will hold further pledging

sessions to attract additional contribution to SMTP III from non-African countries. The Foundation

has undergone significant institutional and management changes to improve upon performance and

adherence to internationally reputable fiduciary oversight regimes, after weaknesses were discovered

through 2008 Executive Board-commissioned audits. AfDB technical assistance contributed to

revamping the Foundation’s fiduciary and governance systems.

II – PROJECT DESCRIPTION

2.1 Project rational

2.1.1 PRSP and CSPs priorities, key development issue(s) the project is aiming to address. The

project focuses on capacity building of RMCs and regional institutions. It will contribute to

improvements in a wide array of areas that are relevant to Africa’s regional integration and

participation in global trade. The project seeks to enhance human resource quality and availability,

strengthen organizational arrangements and institutional policy-making, which are key for

transforming African economies, for example through: (i) an improved economic and financial

governance in support of regional integration policy formulation and implementation; and (ii) an

enhanced legitimacy and accountability of the governance system for greater financial integration of

African economies. These areas are important to achievement of Bank Group’s CDS and are well

aligned to Bank Group’s long Term Strategy for the continent’s development.

2.1.2 The project is grounded on the Guiding Principles and Pillar 2 of the CDS (Strengthen Regional

Member Countries’ Capacity for Policy Dialogue on Key Development Issues), in which the Bank

Group recognizes that no individual institution is in the position of providing capacity building

support to the extent required by RMCs and RECs for undergoing the necessary transformations. The

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objectives of the CDS are to: (a) enhance development effectiveness of AfDB-funded operations; (b)

strengthen RMCs’ capacity for policy dialogue on key development issues; and, (c) build internal

Bank Group’s capacity. In implementing the CDS, Bank Group aims to build partnership with

national and regional capacity development institutions, which are able to deliver high quality

interventions on its behalf. Use of such institutions is to help build capacity more quickly, achieve

greater impact on a larger target audience in a more cost-effective and cost-sharing manner than Bank

Group alone could achieve. The project is also anchored on Pillar 2 of the KMDS, which emphasizes

“building partnerships and increasing collaboration with relevant external institutions, universities,

and think tanks”. The KMDS also calls for greater focus on regional research and capacity building

institutions, such as ACBF, that produce knowledge-based regional public goods.

2.1.3 The project aims to strengthen regional integration, and is in line with Bank Group’s regional

integration strategy, which emphasizes harmonized policy, capacity building, and dissemination of

good practices within RECs, increasing competitiveness and productivity, enlarging trade, pooling

resources for investment and achieving economies of scale to promote industrialization. The project

meets the eligibility criteria as a regional public good, such as non-rivalry, non-exclusivity and

aggregation of contributions. The project is therefore in line with Bank Group’s engagement in

regional operations, which is guided by the Strategic and Operational Framework and the Criteria for

Cost Sharing Exemption when Financing Eligible Regional Public Goods adopted by the Board in

2008, the Regional Integration, and the Selection and Prioritization Framework adopted in January

2011.

2.1.4 In addition, the collaboration with the Bank Group will help strengthen capacity of ACBF in

several sector and thematic areas where the Bank Group has comparative advantage, and facilitate

building RECs’ capacity to implement AfDB-financed development projects. ACBF’s ability to

leverage and coordinate donor resources will also help the Bank Group make progress in meeting

agreed protocols for aid harmonization. Taken together, the project will help improve Bank Group

portfolio performance and effectiveness, contribute to progress on RECs’ outcomes and their

capacity to manage for Results and to make progress on their Development Effectiveness Agenda.

2.1.5 ACBF meets Bank Group’s criteria for selecting regional institutions to partner with, including:

(i) human and organizational capacity and track record; (ii) relevance of the entity’s specialization to

Bank Group’s capacity building priorities; (iii) regional considerations; and (iv) sustainability.

2.1.6 The project strengthens Bank Group partnership with other regional institutions as ACBF

coordinates its activities with the African Union Commission (AUC), the New Partnership for

Africa’s Development (NEPAD) Agency (NPCA) and the United Nations Economic Commission for

Africa (UNECA). Such partnership is important in delivering unmatched capacity building support to

state and non-state institutions. The collaboration among these regional institutions will help

strengthen policy formulation capacity of RECs so that they can manage periods of crises and

uncertainty; sustain recent rapid economic growth, democratic gains and social stability; and translate

growth into dividends, such as greater employment opportunities.

2.1.7 The project will extend the reach of Bank Group resources as ACBF can leverage AfDB

resources with contributions by other donor partners such as the World Bank, IMF, UNDP and

African and non-African Governments. ACBF’s close relationship with RECs, and collaboration with

Bank Group Departments to build capacity will help feed knowledge outputs into RECs’ strategies

and improve outcomes of regional integration and poverty reduction strategies. The SMTP III also

6

takes a long-term financing view of capacity building of RECs, which will enable ACBF provide

sustained support through a range of activities including individual training and technical assistance.

The organization contributes to recurrent and overhead costs of project beneficiaries including RECs,

which will enable Bank Group to devote its resources to core project activities and thus achieve

better results of capacity building interventions.

2.1.8 The Bank Group can provide significant oversight of the project beyond regular supervisory

missions, as it is represented on both the Executive Board and the Board of Governors of ACBF,

which meet at least twice a year and once a year, respectively. Furthermore, ACBF has received

Bank Group’s technical assistance to improve its internal organizational capacity and has

implemented previous SMTPs to AfDB’s and donor partner satisfaction.

2.2 Project objectives and components

2.2.1 The grant will contribute to ACBF’s pool of resources for implementing the SMTP III over

the period of 2013-2014. The overall goal of the project and SMTP III is to build capacity of regional

institutions for governance that is effective and translates into real poverty reduction. The activities to

be implemented under this project have been selected in such a way that, even where they are

implemented at country level, they contribute to regional integration. A number of sub-regional

dissemination of key conclusions and recommendations are planned to ensure sharing of critical

knowledge and experience. The activities associated with the components are as follows:

2.2.2 Component 1: Improving economic and financial governance in support of regional

integration policy formulation and implementation. ACBF capacity building support to RMCs

and RECs will aim at strengthening the enabling environment and make it prone to an improved

formulation and implementation of regional integration policies. Operations support will be provided

for the following objectives and activities:

Improved macro-economic policy modeling and forecasting at sub-regional level.

Supporting the formulation of policy options for sub-regional economic analysis and governance

reforms.

Strengthening policy formulation and implementation capacity of RECs on regional integration

and trade (RIT).

Enhanced research on innovative methods of financing sub-regional infrastructure development

especially in energy and transport in line with priority continental infrastructure initiatives such

as the programme for Infrastructure Development in Africa (PIDA).

Enhanced development of regional policy frameworks for public-private partnerships.

2.2.3 The component will be implemented through the Macroeconomic and Financial Management

institute (MEFMI) of Eastern and Southern Africa; and the Nigeria Institute for Legislative Studies

(NILS). The MEFMI (13 member countries comprising Angola, Botswana, Kenya, Lesotho, Malawi,

Mozambique, Namibia, Rwanda, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe) past

interventions have improved policy coordination and macroeconomic analysis in member countries;

and increased issuance of government bonds and non-cash transactions in the region and the

countries that have institutionalized Debt Sustainability Analysis as indicated in the World Bank and

AfDB CPIA indices and the IMF’s Debt sustainability and risk analysis reports.

7

2.2.4 The ultimate goal is to bring all countries at the same level of policy coordination and

macroeconomic analysis in order to facilitate the harmonization and implementation of regional

policies and programmes in these areas. In addition to these country specific interventions, MEFMI

will carry out a number of activities that have a regional scope. Specifically, the Macroeconomic

Programme Department will carry activities aiming at: (i) improving macro-economic policy

modelling and forecasting at sub-regional level; (ii) supporting the development of regional policy

frameworks for public-private partnerships, especially for complex cross-border infrastructure

development; and (iii) strengthening policy formulation and implementation capacity of RECs on

Regional integration and trade. The Financial Management Programme Department will carry out

research studies on innovative methods of financing sub-regional infrastructure development

especially in energy and transport sector and promote collaboration between public and private sector

at sub-regional level on financial and banking sector reforms.

2.2.5 The NILS is a national capacity building institution which contributes to the implementation

of good governance processes in Nigeria as well as in the ECOWAS region. The project will enable

NILS to deepen its on-going capacity building programs in Nigeria and also for the ECOWAS

Parliament. It allows ACBF to build on successes achieved by replicating its strategic entry beyond

the Nigerian National Assembly. At present, NILS has a standing partnership arrangement with the

ECOWAS Parliament to support capacity building activities of the regional parliament.

2.2.6 Component 2: Improved transparency and accountability in the management of public

resources in Africa. Financial integration is necessary to facilitate exchanges between African

countries and often proves to be a key driver for wider regional integration. Working with the RECs,

ACBF will support RMCs in improving their governance systems thus paving the way for effective

financial integration of African economies through:

Implementation of the African Government Outlook (AGO) in 10 countries to uncover financial

governance needs in RMCs

Supporting skills and institutional development to address the gaps uncovered in financial

governance at country and regional levels.

2.2.7 There is now a general consensus on the role that good governance plays in achieving equitable

and sustainable development in Africa. Countries with better governance profiles tend to attract higher

levels of foreign direct investment which contributes to economic growth. In addition, evidence also

suggests a link between good governance, the decline in absolute poverty levels, and improvements in

overall development outcomes, e.g. in areas such as education and health.

2.2.8 A robust knowledge base is critical to assessing and improving the quality of public financial

governance in Africa. A number of instruments are already used to assess progress in financial

governance, e.g. Public Expenditure and Financial Accountability Assessments (PEFA); the Global

Integrity Index (GI); and the Open Budget Index (OBI). However, in the past decade, governance

assessments have tended to focus on numerical ratings, thereby neglecting the qualitative dimension.

Limited consideration has been given to the impact of economic, social and political factors that support

or impede reforms. In 2011, the AfDB developed the AGO to address this gap1. The AGO aims to

provide an overview of public financial governance reforms in Africa as well as offer deeper insights

on underlying reasons for recent trends in such reforms. It examines interest group dynamics and

1 NB: the new generation of governance assessments integrates political economy dimensions of financial governance and

combines quantitative and qualitative analyses.

8

identifies drivers of, and obstacles to change, by analyzing stakeholder incentives, capacity, and

institutional constraints.

2.2.9 The AGO has a specific capacity building dimension and focuses on country ownership and

wide stakeholder participation. Data compilation and analytical work are undertaken by local research

institutes; analytical work involves local participation through surveys, focus groups and expert panel

discussions; and national stakeholder groups are formed which provide a formal platform for

consultation. The AGO places emphasis on moving from a situation where data is compiled and

analyzed externally to one where data systems reflect national priorities and where national agencies are

closely involved. This requires focusing attention, not only on the short term needs for information, but

also on long term investments in national capacity to independently generate, analyze and disseminate

information on financial governance.

2.2.10 The tool carves out its niche by focusing on a financial governance assessment and complements

existing efforts by other development partners in Africa. It consolidates existing partnerships with key

African institutions to strengthen the capacity of national and regional institutions to collect and analyse

financial governance data.

Figure 1: AGO's mission and strategic objective

2.2.13 AfDB in collaboration with ACBF and national partners launched the AGO in 2011. To date

much work has been done to build partnerships and capacity in each of the pilot countries: Burkina

Faso, Ethiopia, Ghana, Kenya, Mali, Mozambique, Rwanda, Senegal, Tanzania and Uganda. In

addition, the pilot provided the opportunity to consolidate learning and refine the

2.2.11 The Bank Group in collaboration with the ACBF and national partners launched the AGO in

2011. To date much work has been done to build partnerships and capacity in each of the pilot

countries: Burkina Faso, Ethiopia, Ghana, Kenya, Mali, Mozambique, Rwanda, Senegal, Tanzania

and Uganda. In addition, the pilot provided the opportunity to consolidate learning and refine the

methodology in preparation for the roll out of the AGO to other countries in Africa. Ten draft country

reports were produced. In addition, a consolidated publication, entitled the ‘Preliminary Findings of

the AGO Pilot Phase’ was produced and disseminated at AfDB’s Annual Meetings since 2011.

2.2.12 This component aims to build upon the substantial learning from the pilot phase to produce

final reports for each of the 10 pilot countries. This will require updating the data and the political

economy analysis in the existing reports to reflect the current position (2014). A consolidated report

will be produced summarizing the main findings in the ten countries. In addition there may be

opportunities to address some of the issues identified in the 10 reports through piloting a limited

range capacity building initiatives.

Figure 2: Lessons learned from the implementation of the pilot

AGO’s mission is to contribute to the overarching goal of poverty reduction and sustainable development in Africa. AGO’s strategic objective is to

contribute to increasing the level of accountability and transparency in the administration and management of public financial resources in Africa

by: Providing a platform for better understanding of the processes of public financial policies and practices thereby helping to set the

region’s governance agenda;

Integrating information from different sources through the development of a coherent organizational framework and analytical tools; Developing analytical space for evidence based policy dialogue;

Sharing best practices on institutional reforms; and

Informing the Bank’s policies, country and sector strategies and operations.

- Based on lessons learned from the pilot, clarify the guidelines for implementing the AGO,. This would help to ensure that the application of

the methodology is consistent across all countries. - Provide additional support to teams undertaking the political economy analysis, which was identified as an area of weakness in the pilot

reports.

- Identify strong international and national consultants to lead teams undertaking the political economy analysis at the country level. AfDB field offices may be able to provide recommendations in this regard.

- Employ a data auditor to verify the robustness of the data collected. This would ensure that teams focus on capturing the ‘value add’ of the

AGO, i.e. the explanation of why scores have changed, rather than focusing on the accuracy of the underlying data. - Ensure closer co-ordination between AfDB HQ/field offices and ACBF to monitor implementation.

9

2.3 Technical solution retained and other alternatives explored

The technical approach advances Bank Group’s strategy to build capacity of RMCs and key

regional institutions for developing and implementing policies that are effective, and to do so in

partnership with other since no individual institution is capable of providing the extent of capacity

building support required by RMCs and RECs to sustainably undergo the necessary transformations.

The solution retained builds on Bank Group’s support for preceding SMTPs, successful

implementation of past projects by ACBF, and Bank Group’s commitments to the Foundation as the

region’s premier development agency. The alternatives explored included (i) providing direct

capacity building support to RMCs and RECs; (ii) using Bank Group’s CDS as sole instrument for

delivering all of its capacity building interventions; and (iii) providing grants to ACBF to only act as

Implementing Partner for Bank Group Departments. However, those options were discarded in

favour of Bank Group working through ACBF and other donor partners and regional governments to

address aspects of capacity building that Bank Group cannot undertake as an individual institution, as

elaborated in Table 3 below.

Table 2: Project alternatives considered and reasons for rejection

Alternative

name

Brief description

Reasons for rejection

Provide direct

capacity

building support to RMCs and

RECs

Bank Group will develop

and implement in-house

all of its capacity building support to

RMCs and RECs

without ACBF as a devolved partner

institution

A significant part of Bank Group capacity building support to RMCs/RECs are developed and

implemented directly by various AfDB Departments, as part of the integrated project

mechanism. However, devolving some aspects of capacity building programing through partnership with ACBF allows Bank Group to extend its capacity building funds as ACBF

leverages Bank Group contributions

ACBF handles overhead and administrative costs of delivering country and regional programs, which enables Bank Group to maximize its capacity building resources.

By delivering some capacity building programs in partnership with ACBF, Bank Group is

helping to build an experienced regional institution that is respected by African Governments and so can be requested to help address capacity issues that may be too sensitive for Bank

Group, such as dialoguing and managing political conflicts.

Bank Group’s

Capacity Development

Strategy as Sole

Instrument

All of the Bank Group’s

capacity building programs will be based

on the Capacity

Development Strategy (CDS)

The CDS is primed on strengthening selected regional institutions to which Bank Group’s

interventions will be devolved as part of moving away from retail to partial wholesale approach

ACBF has gained sound experience through its SMTP I and II, with Bank Group support, and

supporting the Foundation to implement SMTP III will allow ACBF to use the lessons learned to enrich capacity building methodology and also build on projects successfully carried out

over the 10 years of SMTP I and II.

ACBF only as Implementing

Partner for

Bank Group Departments

Provide support to ACBF to implement

only projects that are

sponsored by Bank Group Departments

The Bank Group, the World Bank, UNDP, IMF, several African and non-African Governments are members of ACBF and have agreed to work together in supporting capacity

building activities through the Foundation.

ACBF serves as a forum of coordinating regional capacity building interventions agreed by its

members, which provides a rich opportunity to cross-fertilize ideas, methodologies and

resources.

The bank group’s ability and flexibility to respond to specific demands given the changing environment and needs across Africa may be limited

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2.4 Project type

The project is a stand-alone regional operation that meets the requirements of RPG as shown

in Table 4 below.

Table 3: Project’s Compliance with Regional Public Goods Criteria

Criterion Justification

Stage I

Non-rivalry ACBF capacity building programs target 45 RMCs but all RMCs and RECs can access the products and services of the projects

to be financed by the grant.

Non-excludability Any RMC or other countries around the world can access the project’s outputs and lessons learned, for example through intra-regional consultative forums and South-South knowledge sharing forum, and apply them in their own capacity building

strategies. ACBF organized a high-level forum during the Bank Group’s Annual Meetings in 2012, as part of the project’s

activities. The Foundation also regularly convenes other high-level meetings involving its members (RMCs, bilateral and multilateral donors). ACBF’s Web site is a major information gateway on capacity building. The Foundation’s products, such as

the African Capacity Indicators and Results Measurement Framework, can be used by the broader development community for

improving outcomes of interventions on the ground. These and several features of the grant and ACBF will ensure that non-participating countries/communities can also benefit from the project.

Public interest

and ownership

ACBF is a regional institution supported by several RMCs and donor agencies to coordinate and deliver regional public goods

across Africa. As such, it coordinates capacity building resource mobilization and activities with key regional bodies such as the African Union Commission and UNECA, and national institutions that are charged with capacity building responsibility. The

Foundation has created and/or strengthened existing policy think tanks that help anchor its activities at country level, and works with RECs to address issues deemed important by the RMCs.

Stage II

Multi-country

involvement

ACBF and the SMTP III respond to the regional need to address capacity of African states. The ADF grant support will include

core programs of ACBF, which are delivered for the benefit of more than 45 RMCs, several RECs, etc. The project focus of SMTP III includes building capacity of RMCs and RECs to increase intra-regional trade and Africa’s share of the world market.

Strategic

alignment

The project is anchored on Pillar 2 of the 2008 Board-approved KMDS, which emphasizes “building partnerships and increasing

collaboration with relevant external institutions, universities, and think tanks”. The KMDS also calls for greater focus on

regional research and capacity building institutions, such as ACBF, that produce knowledge-based regional public goods. The project is also consistent with the Bank’s Medium Term Strategy and important to achieving the objectives of Bank Group’s

Capacity Development Strategy (CDS), particularly it’s Pillar 2, i.e., Strengthen RMCs’ capacity for policy dialogue on key

development issues. The project advances the CDS by partnering with ACBF to deliver high quality interventions on its behalf, and in so doing enabling Bank Group move away from a ‘retail’ to ‘partial wholesale’ approach while leveraging Bank Group

resources, in assisting RMCs and RECs on their capacity building programs. The grant will also enable the Bank Group fulfil its

sponsoring membership role to the Foundation, along with the World Bank, UNDP, IMF and other members. It is also in line with the Bank’s regional integration strategy that emphasizes harmonized policy, capacity building, dissemination of good

practices within RECs and cross-cutting issues like knowledge management. The project is also consistent with the Bank’s

roadmap on aid effectiveness and donor harmonization.

Catalytic and

upstream role

The project responds to underlying principles of Bank Group’s strategies. For example, the CDS, recognizes that, “no matter the

amount of financial resources mobilized for Africa’s development, such funds would yield only limited or modest results if

countries do not have the human, organizational and institutional capacity to absorb and effectively utilize them.” While African countries have made progress in economic growth rates and poverty reduction targets, the dearth of capacity critically limits the

pace of growth that can translate the rich natural resources into economic dividends such as jobs for the large youth segment,

usher in an industrialization and value-added dimension of exploiting these resources or sustain growth and development.

Higher

Developmental

Impact in Cooperating

The project focuses on capacity building in areas such as stability and good governance environment for an inclusive growth,

performance of productive sectors and youth employment, regional integration and Africa’s participation in world trade, which

are critical for transforming African economies. The project will help improve ability of RMCs to sustain recent rapid economic growth, democratic gains and social stability even in periods of uncertainty, through sound policy formulation.

Eligibility to cost-sharing exemption

Grant resources

outside the PBA Allocation

ACBF is not entitled to the PBA system. It is a regional organization founded by the Bank Group and partners, who continue to

provide resources for its operations. ACBF leverages Bank Group resources to a great extent, and includes contributions by RMCs, and Bank Group partners.

2.5 Project cost and financing arrangements

The current proposal is for eighteen months ADF Regional public goods contribution of UA 3

million (USD 4.6 million) in support to the implementation of ACBF SMTP III. The total cost of

SMTP III over its five-year span is estimated at UA141.44 million (US$ 218.00 million) and its

equivalent for the 18-month implementation period that this project concerns is UA 44.77 million

(US$ 69.00 million). The high case scenario of US$ 345.00 million over 5 years (2012-2016) which

was the target of the Foundation was revised with the approval of the Executive Board to the base

case scenario of US $ 218.00 million, in view of the financial crisis facing the Partners in the OECD

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countries. To date, various members, such as the World Bank (US$ 100.00 million), African

countries (US$ 25.850 million), Sweden (US$ 10.00 million), UusAID (US$ 3.06 million) have

pledged or committed UA130.18 (US$ 200.65 million), covering about 92% of the funds needed

under the base case scenario. ACBF has requested Bank Group contribution of US$ 4.6 million for

the first two years span of SMTP III. As a co-sponsor of ACBF, the Bank Group has contributed UA

25.25 million to the Foundation’s four phases of capacity building programming over the past 20

years.

Table 4: Project cost estimates by component (in million) for the period 2013-2014

Components USD

UA

% Total

Component 1: Improving economic and financial governance in support of regional integration

policy formulation and implementation Improving economic and financial governance in support of regional integration policy formulation and

implementation. ACBF capacity building support to RMCs and RECs will aim at strengthening the

enabling environment and make it prone to an improved formulation and implementation of regional integration policies. Operations support will be provided for the following objectives and activities:

Improved macro-economic policy modeling and forecasting at sub-regional level.

Supporting the formulation of policy options for sub-regional economic analysis and governance

reforms.

Mainstreaming gender in regional economic opportunity and inclusive growth strategies.

Strengthening policy formulation and implementation capacity of RECs on regional integration and trade (RIT).

Enhanced research on innovative methods of financing sub-regional infrastructure development especially in energy and transport.

Enhanced development of regional policy frameworks for public-private partnerships.

2.10 1.38 46.00

Component 2: Improved transparency and accountability in the management of public resources in

Africa. Financial integration is necessary to facilitate exchanges between African countries and often

proves to be a key driver for wider regional integration. Working with the RECs, ACBF will support

RMCs in improving their governance systems thus paving the way for effective financial integration of African economies through:

Implementation of the AGO in 10 countries to uncover financial governance needs in RMCs

Production of 10 final AGO reports and a consolidated report summarizing findings from all 10

countries.

0.798 0.52 17.33

Project Implementation and Supervision 1.383 0.88 29.34

Total base cost 4.281 2.78 92.66

Operational contingency 0.319 0.22 7.33

Total project cost 4.56 3.00 100.0

Table 5: Sources of financing (2013-.2014)

Sources of financing US$ (million) UA (million) % Total cost

ADB Group* 4.56 3.00 6.7

World Bank 40.00 25.95 57.9

African Governments 10.32 6.70 15.1

Sweden 3.99 2.59 5.8

Uus AID 1.12 0.078 0.01

Total Commitments 59.99 38.32 85.59

Financing Gap** 6.92 4.49 1.00

Total Cost 66.91 44.77 100.00

Source: ACBF. The estimated cost of SMTP III is US$ 345 million under the high case scenario and US$218.00 million under the base case scenario over its five-year duration. *The Grant amount being requested in the current proposal. ** Other bilateral partners have confirmed their intention to

pledge to SMTP III for 2013 and 2014.

Table 6: Project Cost by Categories of Expenditure

Categories of Expenditure UA US$ Total %

Consultancies 0.287 0.443 9.65

Workshops/Trainings 1.852 2.455 53.37

Project Implementation and Supervision 0.897 1.383 30.06

Total Base Cost 2.830 4.281 93.08

Physical Contingency 0.103 0.159 3.46

Price contingency 0.103 0.159 3.46

Total Project Cost 3.037 4.600 100.00

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Table 7: Expenditure Schedule by Component

Components 2013 2014 Total

Component 1: Improving economic and financial governance in support

of regional integration policy formulation and implementation

US$ UA US$ UA US$ UA

1.40 0.91 0.70 0.45 2.10 1.38

Components 2: Enhancing accountability of the governance system for greater financial integration of African economies

0.532 0.34 0.266 0.17 0.798 0.518

Project Implementation and Supervision 0.922 0.598 0.461 0.99 1.383 0.89

Total Base Cost 2.854 1.848 1.427 1.61 4.281 2.788

2.6 Project’s target area and population

The SMTP III activities and deliverables will benefit most of the RMCs, RECs and other

regional institutions as follows: (i) directly through ACBF’s capacity building programs RMCs and

RECS, and non-state institutions; and (ii) indirectly through the Foundation’s knowledge sharing

programs and access to ACBF-funded policy documents, high-level forums, useful guidelines,

practices and procedures disseminated by ACBF or other partners. The target groups include

economic and management institutions of RMCs, RECs, Government officials, African professionals

and academics, parliamentarians and their networks, civil society organizations, and staff of ACBF

and other regional organizations.

2.7 Participatory process for project identification and design

The project is to support ACBF’s SMTP III, which follows the Foundation’s previous two five-

year rolling strategic plans. SMTP III is therefore a product coming out of extensive public

consultations among stakeholders of Africa’s development agenda, namely: (i) African governments;

(ii) African regional institutions; (iii) Africa’s donor partners, including the Bank Group, the World

Bank, IMF and United Nations organizations; (iv) non-African governments and bilateral donors,

among others; these stakeholders also happen to be members of ACBF. As part of the consultations,

ACBF organized a number of forums in 2011.

2.8 Bank Group experience, lessons reflected in project design

2.8.1 The project reflects Bank Group’s experience that capacity building must be a strong

component of its development assistance to clients because no amount of development finance can

lead to the growth needed in RMCs to uplift the majority of their populations out of poverty.

Emphasis must be placed on building capable institutions, organizations and human resources to

champion economic and social transformation. While certain African countries have made

commendable progress in economic growth rates and poverty reduction targets, dearth of capacity

continues to hamper the pace of growth needed to translate the continent’s rich natural resources into

economic dividends such as job creation for the large youth segment, usher in an industrialization

and value-added phase of exploitation of these resources, or to sustain growth and development. The

Bank Group has also learned in its long capacity building experience that no single institution can

provide the level of support needed to strengthen institutions, organizations and human resources in

RMCs and RECs for the region to make progress in economic and social transformations.

2.8.2 In supporting ACBF and the SMTP, Bank Group is demonstrating its support for the Paris

Declaration on donor harmonization and the Accra Agenda for Aid Effectiveness, as the Foundation

pools resources from other donors, African and non-African Governments to deliver programs that

impact a large number of RMCs and regional institutions. More importantly, ACBF enables Bank

Group’s capacity building envelope to be optimized and to deliver value for its money.

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2.9 Key performance indicators

The performance indicators are set out in the results-based logical framework at the

beginning of this report. At the impact level, the key performance indicators to be measured in RMCs

that will benefit from the project are: real GDP growth rate; and MDG 1.A (Reduction of income

Poverty). These would provide effective monitoring of project’s impact on inclusive growth, beyond

GDP growth that may result from performance of only a few sectors such as extractive industries.

The project outcome indicators are: (i) improvements in Africa Capacity Indicators (ACI) to track

policy impact on development outcomes; (ii) changes in gender equalities of economic and social

opportunities as measured by UN Gender Related Development Index; and (iii) number of countries

rated with more than 3.9 on the Corruption Perception Index (CPI) for transparency, accountability

and corruption in public sector.

III – PROJECT FEASIBILITY

3.1 Economic and financial performance

The program is not amenable to a cost-benefit analysis since the benefits are not directly

quantifiable in monetary terms. However, improving capacity of RMCs and RECs to formulate and

implement effective policies will lead to targeted socio-economic development interventions

particularly in the project’s focus areas of governance, regional integration and participation in global

trade.

3.2 Specific required feasibility/technical studies

The Foundation has conducted the necessary studies leading to preparation of the SMTP III

document that was approved in February 2011 by its Board of Governors, which includes the Bank

Group; the project activities for the ADF support are contained in the SMTP III program areas and

have been approved by the foundation’s Board of Directors. The lessons from implementation of

SMTP I and II, requests from African governments, and several roundtables organized by the

Foundation have led to the design of SMTP III. The ACBF has undertaken a process of analysis to

zero-in on a set of strategic pillars for focused attention in its strategy for 2012-2016. Choices have

been made entailing assessment of activities, their link to strategic drivers of transformational

change, institutions with which the Foundation should partner, and the focus of capacity building

interventions.

3.3 Expected/designed cross-cutting focus/benefits

3.3.1 Economic Development: ADF-eligible RMCs will benefit from the project directly by

improving their human resources, organizational and institutional strengths, analytical skills for

policymaking, better targeting of development resources, and tracking of budget allocations and

results on the ground. Together, improvements in those areas will enhance regional integration, trade,

and economic development, job creation, global economic competitiveness, business investment

atmosphere, the tax base and mobilization of funds for upgrading infrastructure and delivering on

socio-economic programs. The impact indicators associated with the project include economic

dividends as will be captured in GDP growth rate and improvements in the millennium development

goal (MDG 1 A:income poverty).

3.3.2 ACBF capacity building activities for RMCs, RECs, private sector and non-state actors

encompass cross-cutting issues of gender, climate change mitigation, the environment, agricultural

productivity and youth, which are important in the Bank Group’s MTS.

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3.3.3 Gender: ACBF has developed several operational documents to improve awareness and

integrate policies and strategies for promoting gender equality in development programming of

RMCs. Raising the level of gender sensitivity in public policies and programs was a key activity

during SMTP II. Those strategies, programs and lessons learned will be used to further strengthen

gender as a cross-cutting feature during SMTP III. Gender equalities in economic and social

opportunities are therefore output indicators for the strategic objective of improved economic and

financial governance for effective regional integration; another output indicator is number of public

institutions responsible for economic financial management and planning trained on resource

allocation and disbursement, including using gender-sensitive parameters.

3.3.4 Environment and Climate Change: The project activities include capacity building for

integrating climate change in economic policy analysis and planning, and policies for environmental

management while transforming agriculture and other productive sectors. The thrust of the project is

enabling RMCs and regional institutions to be competent in making relevant policies and

implementing strategies for managing increasingly complex risks of globalization and economic

development. The main policy issues to be addressed will help RMCs achieve a balance between

productivity (for example in the agricultural sector) and adaptation to climate change.

3.3.5 Social Impact: SMTP III aims to contribute to building capacity of state and non-state actors

for greater political and social stability, and in causing transformational change in RMCs. The project

places emphasis on improving education policy toward better prospects for youth employment, and

to strengthen governance systems for enhanced integration among regional economies. Regional

integration impacts are therefore emphasized in the outcome indicators.

IV – IMPLEMENTATION

4.1 Implementation arrangements

The project funds will be used for ACBF Grant Making to capacity building institutions in

ADF-eligible RMCs and RECs to support operations in areas of the Foundation's SMTP III. All

Grants advanced by the Foundation to ADF-eligible RMCs/RECs, and other entities will be approved

by the ACBF’s Executive Board on basis of requests by RMCs; a Grant Agreement will be signed

outlining the obligations of all parties; and ACBF will supervise implementation of the programs to

ensure that the objectives of Grantees are achieved within set timeframes. All activities in non-ADF-

eligible countries will be financed using the contributions of bilateral and African Government

contributions to ACBF.

4.2 Procurement and financial management arrangements

4.2.1 All procurements financed by the ADF will be in accordance with the Bank's Rules and

Procedures for Procurement of Goods and Works or, as appropriate, Rules and Procedures for the Use of

Consultants. The Procurement of service contracts (acquisition of training manuals, venues for

meetings and events, translation, workshop materials) will be carried out through shopping.

Consultants (firms or individuals where needed and as approved by the Bank Group) shall be engaged

through a competitive process in accordance with the Bank Rules.

4.2.2 Procurement of goods and services could be carried out in accordance with the “Procurement

Guidelines for ACBF Grant Recipients” dated July 2011, as was the case in the previous support to

ACBF on SMTP II. The ACBF procurement guidelines take into account the harmonized rules of

15

procedures approved by multilateral development banks, and are compatible with Bank Group’s rules

of procedures for procurement in Bank Group-financed operations.

4.2.3 The ACBF has developed an internal audit system to perform audits of its processes and those

of its Grant beneficiaries. In addition, ACBF accounts are audited annually by external auditors and a

separate statement is provided to justify the use of individual donor resources. Resources from Bank

Group’s support will be audited the same way. The Foundation has undergone institutional and

organizational reforms, and the existing management capacity, processes and governance structure

are considered adequate, and have the confidence of the Foundation’s Boards, whose members

include Bank Group.

4.2.4 Disbursement arrangements. The total amount committed by the Bank Group will be

disbursed in two tranches: the 1st tranche of UA 2.0 million upon Grant effectiveness; and, the 2nd

tranche of UA 1.0 million after the mid-term review of the project. The Bank will apply the principle

of joint report to contributors on ACBF’s activities, financial accounts and auditing.

4.2.5 The Bank Group will release the project Grant to ACBF in two annual tranches. The Protocol

of Agreement between the ADF and the ACBF will indicate the amount of each tranche. Each

tranche will be transferred to the main bank account of the ACBF. The Foundation has agreed to

maintain a subsidiary ledger to show movement of the receipts for the Project. At the beginning of

Project year 1, the ACBF will submit the request for first tranche, duly signed by its authorized

officials, to the Bank Group. The subsequent tranche requests will be accompanied by utilization

reports for the previous tranche. The Project management team in the ADF will review each of the

requests and utilization reports, and pass the requests to the Bank Group Finance Department for

release of the requested tranche amount.

4.2.6 Necessary steps to obtain baseline data (such as consultant study). The ACBF already has

the necessary data for project appraisal. The project’s baseline data will be consolidated and updated

regularly to monitor implementation progress.

4.3 Monitoring Arrangements

4.3.1 The project will use ACBF’s monitoring and evaluation (M&E) system and structures. A

similar approach proved effective in implementing previous AfDB grants to the organization. The

Foundation, in its continuous effort to enhance effectiveness of capacity building programs, has

developed a Results Measurement Framework (RMF), which provides a guide to strengthening the

results-orientation of its operations. The outputs and outcomes generated by ACBF operations will be

aggregated to demonstrate progress towards achievement of results. Data generated during M&E will

be assessed against the pre-determined set of indicators.

4.3.2 ACBF is in the process of identifying methods of capturing results in emerging areas of

support, such as leadership development, policies for embedding climate change in economic policy

analysis and planning, building capability to handle public private partnerships, and policies for

transforming agriculture. Concerted efforts will also go into capturing the change trajectories and key

results in fragile and post conflict countries.

16

Table 8 Monitoring schedule

4.4 Governance

4.4.1 The ACBF recently approved leaner structure of the Executive secretariat will insure proper

management and oversight of the project. The Foundation’s governance structure comprises: (i)

Board of Governors, (ii) Executive Board, and (iii) Secretariat. The Board of Governors has policy

and oversight responsibilities while the Executive Board approves the Foundation’s budget, annual

work programs and projects. The Bank Group has been consistently represented on both the Board of

Governors and the Executive Board.

4.4.2 ACBF’s operations and management practices are regulated by a number of key guidelines

and rules, including the: (i) ACBF Operations Manual; (ii) “Procurement Guidelines for ACBF Grant

Recipients”; (iii) Disbursement Manual for Grant Operations; (iv) Internal Audit System to perform

audits of selected internal processes, as well as those of Grant beneficiaries; and (v) Code of Conduct

which presents guidelines for staff conduct and highlights standards of ethical conduct.

4.4.3 The ACBF financial management systems are well developed, staffed and capable of

managing the resources of the Project. The Foundation has overcome its management and oversight

weaknesses that were reviewed by the World Bank’s INT Department. The Bank Group has provided

technical assistance to strengthen some weak practices and a new management team has in place

since 2009.

4.5 Sustainability

4.5.1 There is an increasing demand by RMCs for a capable workforce and overall capacity

building for institutional development. African governments are backing up their demands for ACBF

capacity building support by increasing their pledges to ACBF’s overall budget by about six-fold

over previous levels.

4.5.2 The expected economic growth in many RMCs will lead to further demand for trained

workforce. The Bank Group’s support to the Foundation’s SMTP III and the region’s capacity

building will therefore be sustainable, given the increasing awareness of RMCs, RECs and donors for

capacity development and efforts to insure that the institutional environment is strengthened for

economic governance and inclusive growth amidst globalization of trade and need for Africa to

become more competitive.

Timeframe Milestone Monitoring process /

feedback loop

December 2013 Board Approval ADF

December 2013 Signing of Grant Letter of Agreement ADF

December 2013 Signing MOU with ACBF ACBF and ADF

December 2013 Grant effectiveness ADF

December 2013 Disbursement of first tranche ACBF

March 2014 Project Supervision ACBF

November 2014 Annual progress report ADF / ACBF

November 2014 Mid-Review Report ADF

December 2014 Disbursement of second tranche ADF

March 2014 Submission of PCR ACBF

May 2015 PCR ADF

17

4.6 Risk management

The potential risks are based on the current donor economic environment, ACBF’s impact

countries and its organizational headquarters. The risks and associated mitigation measures are

described in Table 9 below.

Table 9: Risks and risk mitigation measures

Risk Rating Mitigation measures

Funding volatility: ACBF may not be able to

mobilize fully or in a timely manner the total

resources required for SMTP III implementation.

M ACBF will use a long-term funding model for SMTP III.

Sources of funds have already been secured on a large proportion of the required budget for the 1st 2 years

ACBF has a dedicated Resource Mobilization Unit for raising additional funds or co-financing of individual projects from project promoters, including

governments and bilateral and multilateral donors.

Programming areas may be too many, requiring a

high level of funding in a difficult economic

environment of donor partners.

M ACBF will make further prioritization and reallocation or resources to key

deliverable areas, if necessary without compromising the overall project

development objective of the SMTP III. For example, ACBF could make

reductions in its overhead budget, like many institutions around the world in a difficult financial era.

Some interventions will be in sub-regions with

many fragile and post-conflict countries, which are

often constrained by a number of factors, including lack of qualified and experienced local staff and

inadequate oversight of governance bodies.

M The organization can draw lessons from the growing body of work on doing

business in fragile states, including ACBF’s own and Bank Group’s work in these

countries, to develop appropriate ways for implementing the project in fragile and post-conflict states.

Political risk: ACBF is headquartered in Harare, Zimbabwe. There could be some risk of political

uncertainty in the country, especially as there may

be impact of sanctions.

M ACBF is financed by African governments and other donors, which makes it feasible that:

The project will be implemented in partnership with national and regional institutions, which will ensure that program delivery will be smooth and

devolved.

The organization can quickly relocate to another country in an event of conflict, which causes an unsafe work environment.

4.7 Knowledge and capacity building

4.7.1 The project will generate knowledge through the various components and pillars of the SMTP

III. The knowledge generated will be in the form of implementation reports, evaluation reports,

quarterly portfolio review reports, completion reports, analytical studies and associated reports,

conference proceedings and working papers and case studies. These documents and knowledge will

be disseminated at the national, regional, and international levels through seminars and discussion

forums as well as presented within the Bank Group as good practices. The Foundation and the Bank

Group will systematically apply the lessons learnt from implementing the project to improve design

and implementation of other capacity building projects. The enhanced capacity that will emanate

from the project will also have positive outcomes on the key sectors of Bank Group’s interventions.

4.7.2 Implementation of SMTP III and ACBF’s collaboration with Bank Group Departments to

build capacity will help generate and feed knowledge outputs into national development strategies.

For example, ACBF’s collaboration with OSGE on the African Governance Outlook will help

improve fiduciary standards for budget support operations.

18

V – LEGAL INSTRUMENTS AND AUTHORITY

5.1 Legal instrument. The legal instrument for the ADF public goods grant of UA 3.0 million to

will be a protocol of Agreement between the African Capacity Building Foundation and the ADF

5.2 Conditions associated with Bank Group’s intervention

(i) Entry into Force of the Protocol of Agreement

The Protocol of Agreement will enter into force upon its signature by African Capacity

Building Foundation and the African Development Fund.

(ii) Conditions precedent to First Disbursement

The obligation of the Fund to make the first disbursement of the grant shall be conditional

upon the entry into force of the Protocol of Agreement and the fulfillment of the following

condition, in form and substance satisfactory to the Fund.

The opening of one (1) special account with a bank acceptable to the Fund to receive

the proceeds of the Grant.

(iii) Conditions precedent to Subsequent Disbursement

The obligation of the Fund to make subsequent disbursement of the Grant shall be conditional

upon the fulfilment of the following condition:

The completion of a mid-term review of the project, the results of which are

acceptable to the Fund.

5.3 Compliance with Bank Group Policies

This project complies with all applicable Bank Group policies.

VI – RECOMMENDATION

Management recommends that the Board of Directors approve the proposed grant of UA 3

million to the African Capacity Building Foundation for the purposes and subject to the conditions

stipulated in this report.

I

Annex I

ACBF Map of the Project Area Countries with ACBF Operations (2012)

II

Annex II

Key lessons learned in implementing Bank Group partnership with ACBF

1 The project design has taken into account a number of key lessons learned in Bank assistance to

ACBF, particularly in: (a) implementing the Strategic Medium Term Plans (SMTP -I and -II); and, (b)

along with other members of the Foundation such as the World Bank, reviewing the SMTP III and ACBF’s

capacity to implement it. The design has also taken into consideration lessons from Bank capacity building

support to RMCs and RECs. Bank knowledge gained through program implementation, analytical work,

review of key development documents, and several platforms to exchange good global practices on

capacity building have also informed the project design.

2 The lessons and assessments have led to the conclusions that ACBF is effective in coordinating

and leveraging donor resources. The organization was founded in 1991 as a result of a partnership

between African governments and the international donor community to provide long-term support for

capacity development programs. The Bank, the United Nations Development Program (UNDP) and the

World Bank constitute ACBF’s sponsoring agencies; the other multilateral partner is the International

Monetary Fund (IMF). Other members of the ACBF partnership include 35 African governments and 12

non-African governments2. Together, members provide grants, technical assistance and other forms of

support to ACBF to deliver capacity building activities in RMCs, RECs and other organizations. ACBF

currently has operations in at least 45 African countries and reaches all other countries in the region

through knowledge sharing and advisory services. The members contributed UA 220.13 million for

implementation of SMTP II (2007-2011) of which Bank’s UA 7.54 amounted to 3.43%.

3 ACBF has good governance and financial management systems in place to implement the

project. The Foundation has undergone significant institutional and management changes to improve upon

performance and adherence to internationally reputable fiduciary oversight regimes, after weaknesses were

discovered through 2008 Executive Board-commissioned audits. Bank technical assistance contributed to

revamping ACBF’s fiduciary and governance mechanisms. ACBF has developed an internal system to

perform audits of its processes and those of its Grant beneficiaries. In addition ACBF accounts are

examined annually by external auditors, and a separate statement is provided to justify the use of

individual donor resources. Resources from Bank’s support will be audited the same way. The Foundation

has undergone reforms, including hiring of several new staff in management. The existing management

capacity, processes and governance structure are considered adequate, and have confidence of the

Foundation’s Boards, whose members include Bank’s representatives.

4 The Foundation is competent in utilizing Bank Resources. Bank Project Completion Report

(PCR) concerning SMTP I and found that 99.54% of the funds were disbursed by ACBF. Bank’s grant to

ACBF for SMTP II implementation closed at the end of December 2011 and supervision reports indicated

that the grant has been fully disbursed, and implementation and resource utilization were on track to

achieve project objectives. The PCR covering SMTP I rated achievement of outcomes as “very good” in

two areas; “good” in the third; and “fair” in the fourth areas. The report observed that, “ACBF succeeded

in improving policy making processes, particularly through 20 policy think tanks that it has established.

This involved substantial institutional innovation because their reach extends beyond the core public

sector to non-state actors. The impact of these think-tanks is not only felt in terms of more evidence-based

policy making, but through a richer dialogue between government, donors, civil society and the private

sector.” It also observed that, the organization “succeeded in supporting training institutions in the

2 The current ACBF members are: four (4) multilateral agencies, namely: AfDB, World Bank, UNDP and IMF; 35 African Governments, namely: Benin,

Botswana, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Côte d’Ivoire, Democratic Republic of Congo, Republic of Congo, Djibouti,

Gabon, Gambia, Ghana, Guinea Bissau, Kenya, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia, and Zimbabwe; and 12 non-African Governments, namely: Canada, Denmark,

Finland, France, Greece, India, Ireland, Netherlands, Norway, Sweden, United Kingdom, and United States of America

III

Financial Management and Accountability core competence area, which has allowed key ministries,

central banks and agencies involved in financial management to improve the skills and competencies of

their staff ... helped to transform some into centers of excellence and produced qualified economists for the

continent.” The organization had a “good” outcome rating on enhancing its “visibility significantly,

allowing for a considerable rise in its convening power; clients recognize the symbolic importance of

ACBF support, which is seen as influential in attracting funding from other donors.” In addition, the PCR

rated as “fair” ACBF’s implementation outcome in capacity building for improved trade negotiations and

trade policy development in the 15 countries targeted, and “has contributed to more effective voices of

African negotiators in multilateral trade talks, such as the WTO Doha Round.”

5 ACBF has demonstrated many years of experience in design, delivery, management and

monitoring of capacity building interventions. Evaluation of ACBF’s track record of project

management procedures has revealed that its strengths include a demand-driven approach to project

selection, which encourages local ownership; as well as a long-term view of capacity building. The

preparation of the proposed project has followed a process of consultation leading to the appraisal report,

as in previous Bank support to the Foundation.

6 ACBF has made investments and supported capacity development programs in the proposed

areas of intervention in the current project and the SMTP III. The organization has invested in

approaches for improved government effectiveness, increased accountability and transparency, and

enhanced dialogue and participation. The Foundation has also provided support on issues where it has not

been active in terms of projects and programs. The Foundation targets its programs to the needs of

countries and institutions using models that have been proven to be effective in capacity building. At

present the Foundation’s key areas of competence are: (1) economic policy analysis and management

(EPAM); (2) public administration and management (PAM); (3) financial management and administration

(FMA); (4) professionalization of the voices of the private sector and civil society (PVP); (5) support to

parliaments (SPA); and (6) supporting statistical and monitoring capacity (SMS). The Foundation will

leverage these core competencies to deliver and achieve results in implementing the SMTP III.

7 ACBF's biggest impact has been in the EPAM competency which has contributed to the region’s

skills development in economic policy, creating autonomous policy institutes and think tanks at country

and regional level, as well as via its support for introduction and use of effective tools for analysis and

research in policy development and implementation. To date ACBF has supported creation and growth of

28 autonomous and semi-autonomous policy institutes and think tanks. Their success in driving the policy

agenda at country and regional levels has been recognized by others, including the "Think Tank Initiative"

supported by the Hewlett and Gates Foundations and Canada’s International Development Research Center

(IDRC). ACBF-funded policy units and think tanks have also featured prominently in the Global Rankings

of “go-to” think tanks in the world.

8 Successes of the think tanks and policy institutes have helped improve performance in

macroeconomic management and entrenching evidence-based policymaking and evaluation. These policy

institutes and think tanks have also been particularly active in work on poverty reduction strategies, as well

as providing seminal studies in areas such as agriculture and trade, and export diversification. These

success stories can be found in countries throughout the region, such as Botswana, Burkina Faso, Ghana,

Kenya, Mali, Rwanda, Senegal and Uganda.

9 The Foundation has also made significant contributions to professionalizing voices of civil society

and the private sector (PVP). ACBF-funded interventions in this area, constituting about 9% of resource

allocations, include the early support given to the African Peer Review Mechanism (APRM) process

through technical advice and advocacy to mobilize the voices of civil society.

IV

10 Through tailored interventions at country level, ACBF has contributed to improvement of

governance, with visible results in strengthening voice, participation, and accountability. For instance, the

support to parliament (SPA), which accounted for 9% of the resources utilized during the period 1991-

2009, led to demonstrable successes at the country level such as the case of the Policy Analysis and

Research Project (PARP) in Nigeria. The Foundation provided a small grant, with the Government of

Nigeria also making a small contribution at the start. Initially the project was funded 90% by ACBF and

10% by the Government of Nigeria. With this support PARP was able to build its capacity for policy

analysis and research and production of several outcomes. The program trained several individuals and an

assessment indicated that 98% of trainees had a high level of skills, attitudes, behaviors and performance.

At the organizational level, results were obtained in improvement in effectiveness of the National

Assembly. Regarding institutional level results, the clearest example is the increased transparency and

accountability of the National Assembly, with more visibility and accessibility to the public.

11 Support to strengthening statistical and monitoring systems (SMS) and financial management and

accountability (FMA), while small, making up only 2% and 9% respectively, of grant allocations during

the period 2007-2010, has been highly effective at the regional level. Entities such as the Macro Economic

and Financial Management Institute (MEFMI) and the Kenya Monetary Institute (KMI), Institut de

l'economie et des finances de l'Afrique centrale (IEF- Libreville), and the “maro” and “pole dette” projects

of the central banks of West and Central African countries (BCEAO/BEAC-Macro-Pole dette) have been

highly successful in building capacity in the banking and finance sector. Investments in building statistical

capacity at the regional level through the Economic Community of West African States (ECOWAS) and

AFRISTAT resulted in demand for good data and analysis across countries, and a culture of accountability,

compliance and results amongst projects and states supported by ACBF.

12 There are some areas in which ACBF is less successful, particularly public administration:

The Foundation has been less successful in the areas of public administration, which is a more difficult

area to record achievements. However, ACBF has been able to record success in the area of skills building

through short courses supported under the Public Sector Management Training Program (PSMTP) using

university partnerships such as GIMPA and ENA-Libreville and through leveraging the cohort of project

directors, finance directors, and participants in the 2324 training and scholarship programs, in order to

broaden the sphere of influence in public administration.

V

Annex III

IMPLEMENTATION, MONITORING AND EVALUATION OF SMTP III

1. Implementation

1.1. ACBF will be the implementing agency with its Executive Secretary as the ultimate responsible

official. The project will be implemented through a variety of instruments, including support to country

programs, targeted national projects and regional programs and projects. The grant will also support ACBF

Knowledge Management activities involving studies on capacity building; the information collected will

be shared with RMCs for addressing their development needs. The grant will also be used by ACBF for

Advisory Services and Technical Assistance for good governance and sustainable development through

partnership programs with African governments, the private sector, civil society and Africa's development

partners. The project funds will also be used for ACBF Grant Making to capacity building institutions in

RMCs and RECs to support operations in areas of the Foundation's SMTP III. All Grants advanced by the

Foundation to RMCs/RECs, and other entities will be approved by ACBF’s Executive Board on basis of

requests by RMCs; a Grant Agreement will be signed outlining the obligations of all parties; and ACBF

will supervise implementation of the programs to ensure that the objectives of Grantees are achieved

within set timeframes.

1.2. ACBF’s support to Bank Group Departments (Component 3) will involve Memoranda of

Understanding on the various partnerships, detailing implementation arrangements, and roles and

responsibilities of AfDB and ACBF in each project.

1.3. The implementation, monitoring and evaluation processes will be rigorous and guided by ACBF’s

knowledge of Africa’s capacity needs and approaches to addressing them. The institutional context in

which this Plan will be implemented is a considerably enhanced system due to gains made by ACBF in its

change management exercise, which has now been fully integrated into operations, the continuing

improvements in systems, processes and procedures and improved staff strength. Project implementation

will benefit from refinements of the Foundation’s processes at four levels, namely, administration and

organizational framework; program orientation; grant making process; and project and program

implementation in the field.

1.4. ACBF will streamline its interventions to create room for adapting to the new strategy: (a) First, the

Foundation will transform its support to successful and mature policy units and think tanks (KIPPRA in Kenya,

IDEG in Ghana, CAPES in Burkina Faso, CEPOD in Senegal and CERCAP in Mali) by working with them as

partners rather than recipients of ACBF grants. (b) Second, support to policy units and think tanks will go

towards helping them stretch to take on emerging areas like policies for transforming agriculture, instead of the

current focus on economic policy. (c) Third, the skills building programs targeted at public officials through

university partnerships will be restructured to introduce aspects of leadership development, risk management,

innovation and science and technology. Lessons learned in building capacity for effective dialogue with the

private sector will be used to ensure effective platforms for embedding research ideas in universities make their

way to the private sector. (d) Fourth, greater effort will go into narrowing the geographical spread of ACBF

while deepening work on post conflict countries, with special focus on piloting rapid results instruments to

speed up implementation; focusing more on country programs to reduce operating costs and introduce

flexibility; and supporting M&E systems for better results in all ACBF supported Programs to ensure that

investments yield higher impact that can be tracked. (e) Fifth, ACBF will forge stronger links between Regional

Training Institutions such as MEFMI, WAIFEM, and others to ministries of finance and central banks on the

continent so they can become less dependent on ACBF for core funding.

1.5. The Foundation will continue to seek efficiencies in its internal administration to consolidate the

gains achieved in 2009 and 2010 in reducing administrative costs. This transition to a new way of

functioning with lower administrative costs and higher attention to long term impact will be a gradual

process as the Foundation needs to adjust its internal processes and capacities to the new strategic pillars,

although all align with the current core competencies.

VI

1.6. For new interventions: in the first year of SMTP III, existing or "old" projects in the portfolio will

overlap with the "new" pilots and designs. The ACBF pipeline will be grown around the three strategic

pillars based on where the Foundation currently has limited interventions and where it is achieving

successful results.

1.7. For refinancing/continued collaboration with existing projects: priority will be given to projects

that are in line with the new strategy and its strategic pillars and areas of intervention. This includes

stretching existing project designs by changing their areas of intervention to cover issues such as

agricultural policy and climate change, collaborating with new stakeholders to support tripartite

partnerships (government, private sector and civil society) and/or changing the nature of ACBF's

relationship with key stakeholders. This will apply notably to policy units and universities, with which

ACBF has long-standing interventions.

1.8. Member states of ACBF will receive core support as the Foundation evolves its new strategy.

All countries that are members of ACBF will be incorporated in the annual assessment of the status of

capacity in Africa published as the Africa Capacity Indicators for each year. The inaugural version was

launched on February 9, 2011 to coincide with ACBF's 20th Anniversary. In addition, member states will

benefit from all research work done by the Foundation and knowledge networks and communities of

practice supported by ACBF. Attendance at the annual Board of Governors meeting will give member

states access to key strategic work of the Foundation and allow them to learn from others. Effort will also

be made to network entities previously or currently supported by ACBF in member states with each other

in order to speed up peer-peer learning. The monitoring and evaluation support of the Foundation will also

be made available in member states to enhance their ability to better track policy and implementation

performance. The products supported by ACBF at the regional level, including university partnerships and

capacity building of the RECs will be of benefit to member states. Furthermore, the activities supporting

statistical capacity building at the continental level will be made available to member states so they can

improve their own statistics and ensure the data that feed continental and regional data collection efforts

are originating from a sound statistical basis.

1.9. Differentiated approach to country and regional interventions: ACBF’s experiences in

implementing SMTP II have underscored the need to adopt a differentiated approach to country and

regional interventions, based on diversity of the environment and for better integration in national

coordination frameworks and country systems in order to achieve greater impact.

1.10. Independence of ACBF-supported policy institutes: Long-term sustainability of operations

requires autonomous entities such as policy institutes, or a subset of their interventions, to be positioned

outside the main political battleground in order to allow for independence. Such independence requires

resources, which guarantee that autonomy is preserved and allows for limited agency-capture. In addition,

identification of capacity development champions ensures key change entities are protected, in order to

buffer against intrusions, especially in the case of policy analysis and advice. Finally, effective rollout

plans are in place to ensure buy-in for change, with formal and informal mechanisms for implementation.

2. Administration and Organizational Framework

2.1. ACBF has implemented an enhanced human resource and institutional development strategy. The

core elements of the strategy consisted of an increase in staff strength and rigorous training/re-training

programs to retool staff skills and competencies on a regular basis in order to enhance productivity. The

ACBF Secretariat has been enhancement in the quantity, quality, and skills mix of its staff complement

from the 2006 level, to effectively implement the Plan. Emphasis will remain on teamwork, participatory

management and results-oriented individual and group performance. There will also be selective use of

African and non-African consultants to complement in-house skills mix in a cost-effective manner.

Compensation reviews will be undertaken periodically to attract and retain high quality staff.

VII

2.2. During the period of SMTP III, ACBF will explore options, including feasibility and desirability of

regional offices, for enhancing its field presence and proximity to stakeholders. The exercise will involve

feasibility study and reflections on the operational modalities of the offices. A close proximity to

stakeholders has the potential of minimizing operations supervision costs and strengthening participation in

national and regional upstream policy dialogues and donor consultative forum. As of now, ACBF will

continue to rely on the policy units it has supported, and ACBF projects and programs to serve as proxy

field representatives in country-level interactions with governments, donors and other stakeholders. Also, a

Unit has been formally established within the Office of the Executive Secretary and charged with

responsibility for strategic planning and resource mobilization. Activities of the Departments and

Operations Zones will be guided by performance improvement plans, performance monitoring indicators

and efficiency benchmarks. Lastly, the ACBF Secretariat will continue to strengthen its internal capacity in

financial supervision, project procurement control and disbursement management.

2.3. Program Orientation: ACBF will make a number of refinements, consisting of more intensive

interaction by program officers with stakeholders in assessment of quality of products and services

resulting from ACBF’s interventions; in the measurement of results and impact; in the sharing of

experiences to guide design and implementation of projects and programs, including specific policy

reforms; and in playing a significant role in country and regional policy dialogues.

2.4. Other areas for strengthening are the stepping up of joint missions with partner institutions that are

providing co-financing support to ACBF projects and programs; more effective and intensive use of

members of ACBF’s knowledge networks, especially the Technical Advisory Panels and Networks in the

strengthening of operations; development of an improved framework for results and impact measurement;

improvement in the culture of knowledge sharing within the ACBF Secretariat and among ACBF partner

institutions; improved access by stakeholders to information on operations through portals and feedback

mechanisms from the field; active encouragement of countries to develop country capacity strategies; and

deepening of the annual country capacity assessment reports.

VIII

2.5. Grant Making Process: ACBF will continue with refinements towards enhanced transparency,

greater flexibility and timeliness of responses on criteria and procedures for processing and approving

grant applications. The broad criteria for accessing funding support by program and project promoters

were approved by ACBF’s Executive Board and Board of Governors. They consist of the following: (a)

Consistency with ACBF mandate, core competencies and focus of intervention; (b) Relevance to core

capacity needs of the country or region; (c) Commitment to a participatory development process and

inclusivity of potential Stakeholders; (d) Technical soundness of project proposal; (e) Demonstrated

commitment to sustainability of planned intervention; and (f) Conduciveness of project environment.

These criteria have been widely disseminated throughout Africa, are on ACBF’s web site and are

accessible to all prospective grant applicants. They will continue to be applied during implementation of

SMTP III but revised to enhance their robustness.

2.6. For country programs, in addition to the foregoing, supplementary criteria will apply, some of which

will consist of commitment to: (a) Institutional reforms for public sector effectiveness; (b) Visible efforts

towards the achievement of the MDGs and national program for poverty reduction; (c) Transparency and

accountability in policymaking process, public resource management and the delivery of public services;

(d) Gender equality and equity in the development process; (e) Existence of a framework for coordination

of national capacity building interventions, donor coordination and participatory development; and (f)

Enhancement of stakeholder empowerment, with particular attention to local communities and citizens’

groups.

2.7. The present strategy for dissemination of information on ACBF’s activities will be strengthened.

Materials on ACBF’s operations will be more systematically disseminated. Among numerous others,

operations documents such as country capacity profiles, appraisal reports, mid-term review reports, and

project completion reports will be in the public domain.

2.8. Project/Program Implementation in the Field: To the extent possible and depending on specifics

of each country or region’s institutional environment, ACBF will use existing country or regional

budgetary, financial and procurement management systems. Efforts will also be made to strengthen such

systems, where they exist, with a view to enhancing their effectiveness, transparency and accountability.

However, the Project/Program Implementation Unit concept may still continue to be used, especially

where the project/program involves non-state actors. In all cases, however, every effort will be made to

minimize its disruptive impact on country systems.

3. Monitoring and Evaluation of Plan

3.1. The monitoring and performance evaluation of SMTP III will be rigorously conducted at regular

intervals to ensure that performance targets are clearly set and that expected outputs, outcomes and impact

are met. Requirements for effective monitoring of programs are spelt out in ACBF’s Operations

Guidelines and will be rigorously followed. The monitoring and evaluation of performance will be

undertaken at the level of the programs and the ACBF Secretariat. Regular field supervision, including

financial supervision, will be carried out.

3.2. Performance evaluation framework: During the first year of SMTP III, ACBF will finalize

development of a suitable performance evaluation framework for facilitating the M&E process. The

framework will provide measures at the level of the six core competency areas in which programs and

projects will be developed and implemented and focus essentially on results and impacts. At the level of

programs and projects, annual reviews will be undertaken and followed by a rigorous and extensive mid-

term review at the mid-point of the implementation cycle.

3.3. External evaluations: Two independent external evaluations of the performance of ACBF will be

conducted during the period of SMTP III. They will focus on both operational and administrative issues in

order to enhance ACBF’s effectiveness and efficiency. The first evaluation will be conducted in 2013,

IX

while the second will be carried out at the end of 2016. ACBF Board of Governors will conduct the

evaluations on behalf of all donors to the Foundation’s Capacity Building Trust Fund. This arrangement

will obviate need for individual donor evaluation exercises, which place considerable burden on the

Secretariat, and in the spirit of the consensus reached in Kigali by members of the Board in June 2003 at

their 12th Annual Meeting.

3.4. But Capacity building activities take time to manifest results: While ACBF will maintain a

regular oversight over its interventions to ensure timely and effective impact; capacity building has a long

gestation period. This requires that effort be systematic, carefully targeted and sustained over a reasonable

period of time for desired results to be generated. Thus, in the short term, results and impact of an

intervention may not be readily visible. Also worthy of note in the evaluation of capacity building activity

is fact that efforts of this nature are inherently risky, particularly, in politically unstable environments and

post-conflict situations. However, ACBF will strive to minimize risks and ensure adequate control

mechanisms for protecting its interventions. ACBF will continue to build on its growing experience and

strive to apply best practices in building capacity within difficult and risky environments.

4. Results Measurement Framework (RMF)

4.1. ACBF has developed the RMF to enhance development effectiveness of its interventions and as a

guide to strengthening the results-orientation of its operations. The RMF is a strategic shift away from

expanding coverage of core competence areas and geographic spread towards a greater focus on results

and a better quality portfolio of projects and programs. A series of tools have been developed to support

the process of embedding Results Based Management in the Foundation's way of doing business. The

RMF focuses on development results as a central theme of ACBF’s reform agenda. The expected outcomes

and outputs for tracking results under the RMF are summarized in Annex II of the SMTP III document.

4.2. The Foundation is establishing and collecting baseline data for the KPIs, which cover the six core

areas of competency of ACBF. Work is ongoing to identify methods of capturing results in emerging areas

of support, such as leadership development, policies for embedding climate change in economic policy

analysis and planning, building capability to handle public private partnerships, and policies for

transforming agriculture. Concerted efforts will also go towards capturing the change trajectories and key

aspects of results in fragile and post conflict countries.

4.3. ACBF will assess its contribution to development outcomes through operational results, which

reflect the performance and quality of its portfolio of projects and programs. Outputs and outcomes

generated by ACBF operations will be aggregated to demonstrate progress towards achievement of

development results, which will be assessed through evaluations against pre-determined set of indicators.

X

4.4. Application of the RMF to capacity building has revealed importance of properly identifying

development objectives of interventions and role of key stakeholders and potential champions who are

expected to lead the development process. Also, some weaknesses and gaps noted in the implementation of

the SMTP II re-emphasized the need for ACBF and others involved in capacity building to create and

improve frameworks, spaces and platforms for learning, experimentation and innovation. That approach

would enable the actors to embrace emerging ideas and issues, and test them through piloting, in order to

learn from both failures and successes. The new ACBF program will, therefore, be based on approaches

that enhance innovation and learning.

4.5. The ACBF Evaluation Policy and Guidelines are being revised and embedded in the Project

supervision and reporting by operational staff section of the Operations Manual to nurture a culture of

accountability for results among Program Officers and continuous monitoring by Management of the

results of ACBF interventions. So far, the ACBF-RMF has identified eight (8) key performance areas

where action was necessary to drive changes and ensure higher performance in the Foundation's internal

management systems and business processes. These performance areas are: (a) Improving managing for

development results at the country level; (b) Enhancing quality of operations at design; (c) Improving

operational management and delivery; (d) Improving project M&E; (e) Strengthening partnerships and

coordination with other donors; (f) Promoting innovation and learning; (g) Strengthening financial

management and control; and (h) Improving staff development and administrative efficiency.

4.6. The roles and responsibilities of ACBF’s M&E staff are being revised to remove limitations they

have at present, in which evaluation is placed under the M&E Department while monitoring is done by the

Operations Departments. Mandate of the M&E unit is being expanded to include: (i) upstream review of

project proposals to ensure clarity in project objectives and adequacy of results monitoring arrangements;

(ii) supporting project supervision and performance monitoring; and (iii) assuring quality of the ACBF

portfolio.

4.7. The Foundation is also refining and reinforcing use of data collection and aggregation tools at both

project and corporate levels. The revisions are based on the RMF that aims for effective tracking of the

performance and results of various interventions of ACBF. A training plan for operational staff of ACBF

and staff of ACBF-supported projects has been developed to incorporate modules on project management,

and M&E data collection and reporting. Such training is aimed at disseminating and familiarizing staff and

project personnel with the new tools and systems developed from the RMF.

4.8. In addition, the Management Action Plan (MAP) has deepened the reform agenda of ACBFs

management and governance system. A vigorous implementation of MAP has brought about significant

improvements in ACBF work processes and established a performance-driven work environment.

Successful implementation of MAP has contributed significantly to re-positioning ACBF as an effective

development partner in Africa and oriented the Foundation toward more effectively tackling the challenges

facing Africa in the next 20 years.

XI

Annex IV

Financial Management, Disbursement and Audit Arrangements Accounting, recording, reporting,

and internal control systems

1 The existing financial management systems of the ACBF will be used to handle (record, report and

audit) the financial transactions of component 1 of the Project. The ACBF financial management systems

are well developed and capable of managing the resources of the Project. The Finance Department has

well-experienced, adequate, and qualified staff. Approval of the Project financial transactions will follow

the ACBF approval processes and all the Project financial transactions will be recorded in the books of

accounts of the ACBF. The ACBF uses Sun System accounting software to record and report its

transactions. The same software will be used to record and report the financial transactions of the Project,

i.e. the ACBF system will be used to handle the Project financial transactions, which is in line with the

Paris/Accra Declarations.

2 The ACBF will submit regular quarterly Project progress reports, including financial reports, to the

AfDB. The quarterly financial reports will include sources and uses of funds and detailed statements of

expenditures by categories. The Foundation has a good system of internal control with clear segregation of

duties. It also has a well-functioning independent Internal Audit Unit, which has qualified staff. The Unit

will include the Project financial transactions in its annual work program.

3 Audit arrangements. The annual financial statements of ACBF have been audited by reputable

independent external auditors, who issued an unqualified (clean) audit opinion on ACBF’s accounts for the

2010 fiscal year. The audited financial statements of ACBF will include the financial transactions of

Project components and amounts disbursed by Bank Group will be shown in the notes to the accounts. The

audited financial statements of the ACBF will be submitted to the Bank Group within six months after the

end of each fiscal year.

4 Disbursement arrangements The Bank Group will release the project Grant to ACBF in two

annual tranches. The MoU between the Bank Group and ACBF will indicate the amount of each tranche.

Each tranche will be transferred to the main bank account of the ACBF. ACBF has agreed to maintain a

subsidiary ledger to show movement of the receipts for the Project. At the beginning of Project year 1,

ACBF will submit the request for first tranche, duly signed by its authorized officials, to the Bank Group.

The subsequent tranche requests will be accompanied by utilization reports for the previous tranche. The

Project management team in the Bank Group will review each of the requests and utilization reports, and

pass the requests to the Bank Group Finance Department for release of the requested tranche amount.

5 ACBF has a sound internal process for making grants to countries and regional institutions. To the

extent possible and depending on specifics of each country or regional institution’s environment, ACBF

will use existing country or regional budgetary, financial and procurement management systems to collect

relevant financial data that could be confirmed or validated by ACBF’s own records. Efforts will also be

made to strengthen such systems, where they exist, with a view to enhancing their effectiveness,

transparency and accountability. However, the Project/Program Implementation Unit concept may be used,

especially where the Project/Program involves non-state actors. In all cases, however, every effort will be

made to minimize its disruptive impact on country systems.

6 Consulting Services. Consulting services will be procured in accordance with the Bank Group’s

Rules and² Procedures for the Use of Consultants. Selection of Individual Consultants shall be through the

Bank Group’s procedure for the selection of individual consultants. The Quality and Cost Based Selection

(QCBS) method shall be used in hiring firms, where necessary. The selection for the services of Audit firms

shall be carried out through Least Cost Selection (LCS) method. Individual Consultants shall be engaged

XII

to carry out preparation of Planning, M&E, Budget and Auditing guidelines. For contract amounts valued

at less than UA 200,000 for firms, and UA 100,000 for individuals, advertisement may be limited to

national or regional newspapers. However, any eligible consultant, regional or not, who wishes to provide the

requested services may express the desire to be shortlisted. For contract amounts valued at more than UA

200,000 for firms and UA 100,000 for individuals, advertisement of the procurement must be placed in the

UNDB and Bank Group Web site.

1. Service Contracts Procurement of service contracts (acquisition of training manuals, venues for

meetings and events translation, workshop materials) will be carried out through shopping.

2. Training: Procurement of training activities (Trainers, facilitators, sub-regional and national

workshops and seminars) will be carried out through shortlisting. The selection method for individual

consultants will be used while in case of engagement of firms and organizations/ institutions the Quality

and Cost Based Selection (QCBS) shall be used.

3. Goods: Procurement of goods financed by ADF will be carried out in accordance with the Bank

Group’s Rules and Procedures for Procurement of Goods and Works. Contracts for the supply of

equipment shall be procured under shopping procedures.

4. Operating Costs: Miscellaneous items under operating costs shall be procured using existing

internal procurement procedures in ACBF.

5. Review Procedures All contracts will be approved by the ACBF but all procurement documents,

including expressions of interest, solicitations of price quotations, evaluation reports and contract awards

will be subject to post review by ADF supervision missions. Information on procurement processing shall

be included in detail in the Program Quarterly Progress Report to be submitted to ADF.

6. The following documents are subject to post review by the Bank Group: Specific Procurement

Notices (Expressions of Interest); Tender Documents or Requests for Proposals from Consultants; Tender

Evaluation Reports or Reports on Evaluation of Consultants' Proposals Awarded Contracts

7. Executing Agency ACBF as the Executing Agency will be responsible for procurement of goods

and consulting and training services. The resources, capacity, expertise and experience of ACBF have been

reviewed and are determined to be adequate to carry out the project implementation and associated

procurement services, goods and works. ACBF has a Procurement Specialist and one support staff to

handle procurement activities and the ACBF administrative and procurement manual is aligned with

international best practices based on multilateral procurement guidelines.

XIII

Annex V

Procurement Arrangements

1. All procurement of goods and works and acquisition of consulting services financed by the Grant will

be in accordance with the Bank Group's Rules and Procedures for Procurement of Goods and Works or, as

appropriate, Rules and Procedures for the Use of Consultants, (May 2008 edition, or as amended) using the

relevant Bank Group Standard Bidding Documents.

2. Procurement plan under the project sub-components summarized in the table below.

A Procurement Plan National Institute for Legislative Studies Capacity Building Project

(NILS CAP)

I. General

a) Project information: NILS CAP. Project to promote social and political stability for

transformational change

b) Version of the Plan: 1.00

c) ACBF Approval Date of the procurement Plan :

d) Date of General Procurement Notice:

e) Period covered by this procurement plan: May 2013 to April 2014

f) Other Arrangements: ACBF Procurement Guidelines for Grant Recipients will apply. Procurement

will be carried out by the Grant Recipient and the Procurement Plan will be agreed between ACBF

and Grant Recipient. ACBF may select for prior review items that fall under post review, regardless

the estimated cost.

II. Goods, Works and non-consulting services.

1. Prior Review Threshold: Procurement Decisions subject to Prior Review by ACBF Procurement Method Threshold for use of method Prior Review Threshold

1. ICB and LIB (Goods) US$250,000 and above US$250,000

2. NCB (Goods) US$50,000 and above but below US$250,000 None

3. ICB (Works) NA NA

4. NCB (Works) NA NA

5. ICB (Non-Consultant Services) US$250,000 US$250,000

6 Shopping Less than US$50,000 None

7 Direct contracting None 1,000

2. Pre-qualification (N/A)

3. Procurement Packages with Methods and Time Schedule

III. Selection of Consultants

1. Prior Review Threshold: Selection decisions subject to Prior Review by ACBF as stated in Appendix 1

to the Guidelines Selection and Employment of Consultants: Selection Method Prior Review Threshold 1. QCBS (Firms) US$100,000

2. Consultants Qualifications Selection (CQS) Firms US$50,000

3. Least Cost Selection (LCS) US$50,000

4. Fixed Budget Selection (FBS) US$50,000

5. Selection of Individual Consultant (SIC) US$50,000

6. Single Source Selection (SSS) 1,000

2. Short list comprising entirely of national consultants: Short list of consultants for services, estimated to cost less than

$100,000 equivalent per contract, may comprise entirely of national consultants in accordance with the provisions of

Procurement Guidelines for Grant Recipients on selection of Consultant.

3. Any Other Special Selection Arrangements: ACBF Procurement Guidelines for Grant Recipients

will apply. Procurement will be carried out by the Grant Recipient and the Procurement Plan will be agreed

between ACBF and Grant Recipient. ACBF may select for prior review items that fall under post review,

regardless the estimated cost.

XIV

B MACROECONOMIC AND FINANCIAL MANAGEMENT INSTITUTE OF EASTERN AND

SOUTHERN AFRICA (MEFMI)

I General: (a) Project information: MEFMI country capacity building interventions; (b) Version of

the Plan:1.0; (c) ACBF’s approval Date of the procurement Plan: TBA; (d) Date of General Procurement

Notice: NA; (e) Period covered by this procurement plan: March 2013 to August 2014 (f)

1. Other Arrangements: ACBF Procurement Guidelines for Grant Recipients will apply.

Procurement will be carried out by the Grant Recipient and the Procurement Plan will be agreed between

ACBF and Grant Recipient. ACBF may select for prior review items that fall under post review, regardless

the estimated cost.

II Goods, Works and non-consulting services.

1. Prior Review Threshold: Procurement Decisions subject to Prior Review by ACBF Procurement Method Threshold for use of method Prior Review Threshold

1. ICB and LIB (Goods) US$250,000 and above US$250,000

2. NCB (Goods) US$50,000 and above but below 250,000 None

3. ICB (Works) NA NA

4. NCB (Works) NA NA

5. ICB (Non-Consultant Services) US$250,000 US$250,000

6 Shopping Less than US$50,000 None

7 Direct contracting None 1,000

2. Pre-qualification(N/A)

3. Goods - Procurement Packages with Methods and Time Schedule

Ref.

No.

Contract

(Description)

Source

of Funds

Plan vs

Actual

Estimated

Cost in US$

Procurem.

Method

Comments

1 Procurement of Statistical

Software packages for M&E,

June 2013

ACBF Plan 5,000 Shopping The institute to shop around for a software

for analysis of questionnaires for monitoring

purposes

3 Procurement of management information system MIS) for

monitoring and evaluation

ACBF Plan 7,000 Shopping To institute to shop around for a MIS that can integrate monitoring and evaluation

activities

Total for Goods 12,000

III. Selection of Consultants

4. Prior Review Threshold: Selection decisions subject to Prior Review by ACBF as stated in

Appendix 1 to the Guidelines Selection and Employment of Consultants:

Selection Method Prior Review Threshold

1. QCBS (Firms) US$100,000

2. Consultants Qualifications Selection (CQS) US$50,000

3. Least Cost Selection (LCS) US$50,000

4. Fixed Budget Selection (FBS) US$50,000

5. Selection of Individual Consultant (SIC) US$50,000

6. Single Source Selection (SSS) 1,000

5. Short list comprising entirely of national consultants: Short list of consultants for services, estimated

to cost less than $100,000 equivalent per contract, may comprise entirely of national consultants in

accordance with the provisions of Procurement Guidelines for Grant Recipients on selection of Consultant.

6. Any Other Special Selection Arrangements: ACBF Procurement Guidelines for Grant

Recipients will apply. Procurement will be carried out by the Grant Recipient and the Procurement Plan

will be agreed between ACBF and Grant Recipient. ACBF may select for prior review items that fall under

post review, regardless the estimated cost.

XV

C AGO Procurement Plan

I General: (a) Project information: African Governance Outlook Draft Budget; (b) Version of the

Plan: Version 1.0; (c) Bank’s approval Date of the procurement Plan: Period covered by this procurement

plan: January 2013 - December 2013; (d) Other Arrangements: NA

II. Goods, Works and non-consulting services. 1. Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank

Procurement Method Threshold for use of

method

Prior Review Threshold Comments

1. ICB and LIB (Goods) US$500,000 and above 500,000

2. NCB (Goods) Less than US$500,000 NA

3. ICB (Works) Not applicable No Major Works Planned

4. NCB (Works) Not applicable No Major Works Planned

5. ICB (Non-Consultant Services) US$500,000 and above 500,000

6 Shopping (goods and minor works) Less than US$50,000 None Includes shopping for minor works

7 Direct contracting None All contracts above US$5,000

2. Prequalification (N/A)

III. Selection of Consultants

1 Prior Review Threshold: Selection decisions subject to Prior Review by Bank as stated in

Appendix 1 to the Guidelines Selection and Employment of Consultants:

Selection Method Prior Review Threshold Comment

1. Competitive Methods (Firms) US$200,000 and above

2 Selection of Individual Consultant US$100,000 and above

3. Single Source Selection All contracts above US$5,000

2. Short list comprising entirely of national consultants: Short list of consultants for services,

estimated to cost less than $200,000 equivalent per contract, may comprise entirely of national

consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.

3. Any Other Special Selection Arrangements: NA

4. Consultancy Assignments with Selection Methods and Time Schedule

Ref. No.

Description of Assignment

Source of

Funds

Estimated

Cost

Selection Method Review by

ADF

1 Recruitment of International / Consultant per country ( 10 countries)

AfDB 92,088 Selection of Individual Consultant Post

2 Country Research Teams / Institutions (

10countries) AfDB 240,045 QCBS Prior

3 Recruitment of data auditors per country AfDB 60,011 Selection of Individual Consultant Post

5 Hire of a Coordination Assistant AfDB 35,003 Selection of Individual Consultant Post

Total for Consultancy Yr 1 427,147

XVI

Annex VI

List of Confirmed Pledges for the ACBF SMTP III Implementation (As of July 2012) PARTNERS AMOUNTS (USD)

A Multilateral Partners

World Bank (1) 100,000,000.00

African Development Bank 0.00

United Nations Development Programme 0.00

Total Multilateral Partners 100,000,000.00

B Bilateral Partners

Sweden 10,000,000.00

Canada

Denmark

Finland

Total Bilateral Partners 10,000,000.00

C African Partners

Benin 500,000

Burkina Faso 500,000

Burundi 500,000

Cameroon 750,000

Central African Republic 500,000

Chad 1,000,000

Congo 1,000,000

Cote d’Ivoire 2,000,000

DRC 750,000

Ethiopia 250,000

Gabon 1,200,000

The Gambia 500,000

Ghana 1,500,000

Kenya 500,000

Mali 500,000

Mauritania 500,000

Namibia 250,000

Nigeria 3,800,000

Rwanda 600,000

Tanzania 1,500,000

Togo 500,000

Zambia 500,000

Zimbabwe 1,500,000

Total African Partners 21,100,000

TOTAL PLEDGES 131,000,000

Source: ACBF. The pledge by the World Bank is for a period of 3 years (IDA 16). An additional pledge is expected in 2013 on IDA 17

XVII

Annex VII

SUMMARY OF PLEDGES TO SMTP III (2012-2016) As of July 2013 (Amounts in USD)

Source of Support Pledge

World Bank 100,000,000 46%

African Development Bank 50,160,000 23%

Sweden 10,000,000 4%

African Members 25,850,000 12%

Sub-total 186,010,000 85%

AusAID 3,069,000

AfDB (Nigeria Trust Fund) – RECs Survey 650,000

AfDB – AfCOP 2,860,000

AfDB – Zimbabwe Program (disbursement support) 8,063,382

Sub-total 14,642,382 7%

Total funding so far 200,652,382

Funding Gap 17,347,618 8%

Funding Target 218,000,000 100%

Source: ACBF. Notes: 1. The high case funding scenario of USD 345 million over 5 years (2012-2016) which was the target of the Foundation was revised

with the approval of the Executive Board to the base case funding scenario of USD 218 million, in view of the financial crisis facing the Partners in the OECD

XVIII

Annex VIII

Project Timeframe

Milestones 2013

Months

2014

Months

2015

Months

9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7

Board Approval

Grant Protocol Signature

Grant effectiveness

First disbursement

Quarterly implement.

Report

ADF Supervision

mission

Mid-term Review

Second tranche of funds

ADF Supervision

mission

Annual implementation

Report

Audit

Completion Report