African Development Fund Burundi

AFRICAN DEVELOPMENT FUND

PROJECT : PROJECT TO SUPPORT THE EAST AFRICAN NUTRITIONAL SCIENCES INSTITUTE – EANSI “ PA-EANSI”.

COUNTRY : BURUNDI

APPRAISAL REPORT Maïmouna Diop Ly, Chief Health and Social AHHD.2 Team Leader Protection Officer 4211

Hercule YAMUREMYE, Principal Country RDGC/COCF 7006 Co-Team Leader Programme Officer Borel Foko, Education Economist AHHD.1 1547 Mamadou Diomandé, Financial Management 8243 Specialist SNFI.2/RDGE Souwèye Maïga, Senior Procurement 8121 Specialist SNFI.RDGE Gilberte Dogbévi-Faly, Fragility Expert RDTS 3127 Team Members Ousmane Fall, Principal Environmental and 4636 Social Safeguard Specialist SNSC Bocar Cissé, Senior Financial Analyst RDGW2 2316 Project Team Naïda Mohamed, Young Professional SNSC 4381 Jean Claude Nsabimana, Social Development RDGE/COBI 7014 Consultant Emmanuel Manirambona, Consultant RDGE/COBI

Architect Bernard Sindayihebura, Environmental RDGE/COBI

Consultant Sector Division Manager Babatunde Omilola AHHD.2 4553 Country Manager Daniel Ndoye COBI 7001 Regional Sector Division Joseph Coompson RDGE 8415 Manager Sector Director Oley Dibba-Wadda AHHD 2174 Regional Director Gabriel Negatu RDGE 8232 Director for Fragility Yeroh Baldeh RDTS 4036

Josephine Ndao, Chief Enterprise and SME Development Officer AHHD 4227 Jeanne Nzeyimana, Social Sector Officer RDGW 2437 Maria Moreno, Chief Gender Officer AHWS 1363 Peer Reviewers Ann Defraye, Senior Nutrition Officer AHHD.2 4908 Mouhamed Gueye, Lead Development Economist RDGN2 1516 Corbin Michel Guedegbe, Education Expert, Consultant AHHD 4813 Mamadou Kane, Chief Irrigation Engineer AHFR 5269 Date: June 2019

AFRICAN DEVELOPMENT FUND

BURUNDI

Public Disclosure Authorized Public Disclosure

PROJECT TO SUPPORT THE EAST AFRICAN NUTRITIONAL SCIENCES INSTITUTE – EANSI “ PA-EANSI”

APPRAISAL REPORT

Public Disclosure Authorized Public Disclosure

AHHD/RDGE DEPARTMENTS

July 2019

Translated document

TABLE OF CONTENTS

Currency Equivalents, Fiscal Year, Weights and Measures, Abbreviations and Acronyms, Project Information Sheet, Executive Summary, Results-Based Logical Framework, Project Implementation Schedule … . i to vii

I. Strategic Thrust and Rationale ...... 1 1.1. Project Linkages with Country Strategy and Objectives ...... 1 1.2. Rationale for Bank Intervention ...... 2 1.3. Aid Coordination ...... 3 II. Project Description ...... 4 2.1. Project Components ...... 4 2.2. Technical Solutions Adopted and Alternatives Explored...... 5 2.3 Project Type ...... 6 2.4 Project Cost and Financing Arrangements ...... 6 2.5. Project Area and Beneficiaries ...... 7 2.6. Participatory Approach for Project Identification, Design and Implementation ...... 8 2.7. Consideration of Bank Group Experience and Lessons Learned in Project Design ...8 2.8. Key Performance Indicators ...... 10 III. Project Feasibility ...... 10 3.1. Economic and Financial Performance ...... 10 3.2. Environmental and Social Impacts and Mitigation Measures ...... 11 IV. Implementation ...... 14 4.1. Implementation Arrangements ...... 14 4.2. Monitoring ...... 17 4.3. Governance ...... 17 4.4. Sustainability ...... 18 4.5. Risk management ...... 18 4.6. Knowledge building ...... 18 V. Legal Framework ...... 19 5.1. Legal Instrument ...... 19 5.2. Conditions Associated with Bank Involvement ...... 19 5.3. Compliance with Bank Policies ...... 20 VI. Recommendation ...... 20

Annex I : Comparative Socioeconomic Indicators of Burundi Annex II : Table of Bank Portfolio in Burundi Annex III : Map of Project Area (nationwide) Annex IV : Fragility Context

Currency Equivalents (Burundi, March 2019)

Currency Unit = Burundian Franc – BIF UA 1 = BIF 2,546.77 UA 1 = USD 1.22 UA 1 = USD 1.40

Fiscal Year 1 July – 30 June

Weights and Measures 1 metric tonne = 2,204 pounds 1 kilogramme (kg) = 2.200 pounds 1 metre (m) = 3.28 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0. 62 mile 1 hectare (ha) = 2.471 acres

Abbreviations and Acronyms

ADF African Development Fund ARMP Public Contracts Regulatory Authority

AUM UA Million BBN Burundian Bureau of Standardization BIF Burundian Franc CAMES African and Malagasy Council for Higher Education CBDs Competitive Bidding Documents CHUK Kamenge University Teaching Hospital Centre CNES National Council for Higher Education CNTA National Centre for Food Technology CSP Country Strategy Paper DNCMP National Public Procurement Control Directorate EAC East African Community EANSI East African Nutritional Sciences Institute ECCAS Economic Community of Central African States EDS Population and Health Surveys ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union FABI Faculty of Agronomy and Bioengineering e FAO United Nations Food and Agriculture Organization FARN Learning and Nutrition Rehabilitation Centre GDP Gross Domestic Product HIV/AIDS Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome IFAD International Fund for Agricultural Development INSP National Institute of Public Health IRR Internal Rate of Return IRRI International Rice Research Institute ISABU Institute of Agricultural Sciences of Burundi IUCEA Inter-University Council for East Africa MESRS Ministry of Higher Education and Scientific Research

MISPLS Ministry of Public Health and AIDS Control NDC Nationally Determined Contribution NDP National Development Plan NGO Non-Governmental Organisation NPV Net Present Value PA-EANSI Project to Support the East African Nutritional Sciences Institute PMP Bank Procurement Methods and Procedures PMU Project Management Unit PSMSAN Multi-sectoral Food and Nutritional Security Plan SMEs Small and Medium-sized Enterprises SUN Scaling Up for Nutrition TFF Technical and financial partners TSF Transition Support Facility UA Unit of Account UB University of Burundi UNICEF United Nations Children's Fund WFP World Food Programme WHO World Health Organization

Project Information Sheet Client Information

DONEE : Republic of Burundi

EXECUTING AGENCY : University of Burundi (UB)

Financing Plan Source Amount Instrument ADF UA 6.00 million. Grant Government UA 0.791 million. - Beneficiary - TOTAL COST UA 6.791 million

Key TSF Financing Information

TSF grant currency UA Commitment fee Service fee N/A Maturity Grace period Interest N/A ERR (baseline scenario) 28,185% IRR (baseline scenario) NPV BIF 49,90 million

Timeframe – Key Milestones (expected)

Concept Note approval March 2019 Project approval July 2019 Effectiveness September 2019 First disbursement November 2019 Last disbursement December 2024 Closing of loan and grant December 2024 Last reimbursement N/A ______

iii

Executive Summary

1. Overall Project Overview: The East African Community (EAC) decided to set up centres of excellence in biomedical sciences in 2014. It recommended that Burundi focus on nutrition. In that vein, by decree issued on 28 February 2018, the Government established a sub-regional centre of excellence in nutritional sciences known as the East African Nutritional Sciences Institute (EANSI). The national centre has a regional vision in its operation and is in line with the goal of the Burundi National Development Plan 2018-2027, which has made human capital development one of its top priorities.. To ensure that the Centre can serve the entire EAC region, courses will be offered in English and French, in association with the Higher Education Council of the region, in order to ensure the quality of training offered and help raise awareness of the Centre and thus attract candidates for training. The Centre was established in a context where the acute malnutrition rate in East Africa was 6% (moderately high by WHO standards) and the overweight rate among children was 4.4% in 2016. This brings to light the issue of the double burden of malnutrition. In Burundi, in particular, the chronic malnutrition rate1 (56% in 2016-20172) is one of the highest in Africa and the world, and the prevalence of acute malnutrition is 5.1%, while anaemia affects 61% of children and 35% of women. In addition, national productivity losses attributable to malnutrition alone represent at least 11% of GDP each year in Africa and Asia.

Efforts to improve nutrition and food security are also among the priorities of the Burundian Government, resulting in the inclusion of nutrition indicators in development policy papers, such as Burundi Vision 2025, the National Burundi Development Plan (2018-2027), the Strategic Nutrition Plan (2019-2023) and the Multi-sectoral Strategic Plan for Food Security and Nutrition (PSMSAN). In addition, the issue of nutrition human resources in the East Africa region is a major challenge and the management of malnutrition, given its high rates, is a matter of urgency; hence the need to have qualified nutrition human resources. Burundi also has difficulty leveraging its membership of the EAC Common Market because its products, particularly in the agri-food industry, are of such low quality that they cannot compete with products manufactured in other member countries, especially owing to a lack of experts to help Burundian enterprises enhance their compliance with quality standards. In an effort to achieve the objectives of nutrition improvement and private sector development, the Government, therefore, sought the Bank's support for the establishment of the Centre of Excellence in Nutrition, which had already been set up by decree. This project is the Bank's support for the operationalization of the Centre, which will be financed mainly by the Bank and the Government. Other multilateral, bilateral and United Nations system partners are also interested in supporting the project through intervention synergies.

The project will enhance nutrition security, contribute to the development of human capital and economic growth in Burundi in particular, and in the East African Community region in general, by improving access to high-level training and quality research in nutritional sciences. The project will also benefit the entire region of the East African Community.

The project builds on three components: (i) institutional and pedagogical support; (ii) support for infrastructure development; and (iii) project management. It was designed in a coherent manner and based on lessons learned from existing biomedical sciences centres of excellence, as well as from ongoing social sector projects in Burundi. The project will be implemented over a period of five (5) years and will cost UA 6.791 million, with the Bank contributing UA 6 million and the Government contributing UA 0.791 million. The main expected outputs of the

1 This is a low size-to-age ratio (size/age). 2 According to the demographic and health survey (DHS) 2016-2017. iv

project are: master's degree training in nutritional sciences for 150 students, doctoral training for 10 students and continuing education in nutrition in the health and agriculture sectors. Students will be trained in the following areas: (i) clinical nutrition; (ii) nutrition and public health; (iii) agri-food technology; (iv) food quality; and (v) food security and climate change. The training will be delivered in French and English by teachers who can speak both languages. Students who are not bilingual at the time of registration will be able to take language classes in French or English at the University of Burundi's language laboratory, which will be supported by the project.

Needs Assessment: In Burundi, the rate of chronic malnutrition3 (56% in 2016-20174) is one of the highest in Africa and the world, and the prevalence of acute malnutrition is 5.1%, while anaemia affects 61% of children and 35% of women. The same is true for the East Africa region, where the chronic malnutrition rate is still high at 35.6% (the highest regional rate in Africa) by WHO standards. There is a shortage of qualified human resource specialists to address nutrition issues in the health and food security sectors and technical experts to help improve the quality of agri-food products in Burundi. The staff of the two main ministries concerned with nutrition, namely health and agriculture, have participated in only a few continuing training sessions.

Value Added for the African Development Bank: The Bank is well positioned to support the PA-EANSI, given the project’s alignment with its strategy to "Feed Africa" and "Improve the quality of life for the people of Africa", based on an approach centred on capacity building and human capital development. The Bank has extensive experience in supporting higher education and establishing centres of excellence in biomedical sciences.

Knowledge Building: The project will help to enhance knowledge through high-level training in nutritional sciences. It will generate knowledge through students' theses and dissertations, as well as articles published in regional and international journals. Best practices in terms of partnerships with the private sector will also be documented through internships in private sector enterprises. The project will also carry out the following activities in that regard: (i) dissemination of improved technologies as part of food technology training; (ii) interaction with universities and student visits to universities in the region. Lastly, the Bank will also use lessons learned during the implementation of the project to design its future projects, including elsewhere in Africa.

3 This is a low size-to-age ratio (size/age). 4 According to the Demographic and Health Survey (DHS) 2016-2017. v

Results-Based Logical Framework Burundi: Project to Support the East African Nutritional Sciences Institute (PA-EANSI). Project Goal: Enhance nutrition security and economic growth in the East African Community region through improved access to high-quality training and research in the nutrition sciences

RESULTS CHAIN PERFORMANCE INDICATORS MENS OF RISKS/ VERIFICATION MITIGATION MEASURES Indicator Baseline Target (2024)

Improvement in people's living conditions Chronic malnutrition rate among children under 5 (per 56% (2017) 50% (2023) EDS and competitiveness as a result of capacity 1,000) building and the delivery of nutrition

IMPACT services

Outcome 1: Improved malnutrition A.1 Rate of increase of nutrition-trained staff of health 15% 40% Reports by the University Risk management capacity facilities of Burundi, Lack of resources MSPLS Instability during the next 2020 elections

A.2 Nutrition qualification rate of the staff of the 30% 80% Mitigation measure nutrition programme Firm political will for the continuation of dialogue Firm determination of donors and the Government Outcomes 2: Improved capacity to manage B.1 Number of agribusiness enterprises with qualified 5 40 BBN Reports Risk food quality standards quality control staff Reluctance of private enterprises to comply with quality standards

Mitigation measure

Training and support towards the integration of qualified quality- control staff in enterprises Outputs Risks 1. Specialized initial and continuing training 1.1 Number of curricula for training in fields pertaining 0 5 Annual project reports in nutrition and food science developed

OUTCOMES to health and climate change Problems relating to the funding of nutrition training and lack of interest in the discipline. 1.2 Cumulative number of young Master’s-level 0 150 (30%) Problems relating to the classification of EANSI graduates at the graduates in the new fields at the end of the project (30% Ministry of labour of whom are women) 0 1 Mitigation measures 1.3 Entrepreneurship training module developed and Revise the classification procedure to ensure the proper integration of validated for Master’s-level training nutritionists in ministries.

1.4 Number of professionals offered continuing training 0 180 (at least (50% of whom are women) 50%)

2. Capacity of teachers and research in 2.1 Number of beneficiaries of doctoral training 0 10 Annual project reports nutrition, language and agribusiness built 2.2 Number of research projects funded (including% of 0 12 (at least projects undertaken by women researchers) 50%)

2.4 Number of bilingual teachers with the required 30% 80% English language proficiency level 3. Enhanced attractiveness and 3.4 Number of research institutes collaborating with 0 At least 6 Annual project reports Risks

competitiveness of the centre EANSI Lack of interest by partners and government

3.5 Number of enterprises that have signed collaboration 0 At least 5 Mitigation measures agreements for internships and research and Establishment of a mechanism for promoting partnership and strategic OUTPUTS development programming. Recruitment of a partnership specialist for the Project Implementation Establishment of a competitive mechanism Total number of Master’s- and PhD-level scholarship 0 1 Annual project reports Unit for the financing of studies holders (including % of female scholarship holders)

0 230 (at least 50%) 5. Preparation of a strategic plan for the Number of Strategic Plans prepared and approved by the 0 1 Progress reports by the development of the EANSI Centre Government University of Burundi

6. Training infrastructure and laboratories Number of buildings rehabilitated at FABI; Ex-CNR and 0 3 Annual project reports Risks

rehabilitated and equipped Faculty of Medicine are operational Lack of maintenance Rehabilitated and functional laboratories % of EANSI laboratories equipped with functional 0 100% Annual project reports training equipment Mitigation measures Establishment of maintenance mechanism 2.2. Enhanced digital information resources. The language laboratory is equipped with new academic 0 171 Annual project reports books for various language levels

The EANSI Library has batches of science books for 0 7 training

3.1. Coordination-Project Management Number of annual audit reports approved by the Bank 0 5 Annual project reports

Number of half-yearly and quarterly progress reports 0 10

COMPONENTS RESOURCES Component 1: Pedagogic and institutional support UA 2.972 million

KEY Component 2: Infrastructure development UA 3.075 million

ACTIVITIES Component 3: Project management UA 0.924 million

TOTAL: UA 6.791 million

vii

Project Implementation Schedule Year 2019 2020 2021 2022 2023 Quarter Q1 Q2 Q3 Q4 Q1 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 INITIAL ACTIVITIES Financing negotiations Grant approval Signing of financing protocol Implementation and fulfilment of conditions precedent to first disbursement Publication of the general procurement notice 2 START-UP ACTIVITIES Confirmation of the PMU staff (Director, 2 focal points) Preparation of agreements and priority procurement documents PA-EANSI launch mission Procurement of PMU assets (vehicles, IT equipment, etc.) Signing of agreements with partner entities 3 REHABILITATION OF INFRASTRUCTURE /EQUIPMENT Preparation of documents on priority infrastructure Procurement for priority infrastructure Rehabilitation works Equipment for rehabilitated infrastructure and laboratories Implementation of the environmental management and monitoring plan 4 PEDAGOGIC SUPPORT AND TRAINING Curricula development, validation and harmonization Selection of students Master's training PhD training Continuing training Mobility of teachers and students 5 PROJEC MANAGEMENT Update of management and monitoring and evaluation tools Baseline situation and implementation of the monitoring and evaluation system Management, monitoring and evaluation and communication activities Annual accounts audit Mid-term review TSF and Government completion report

viii

BURUNDI

PROJECT TO SUPPORT THE EAST AFRICAN NUTRITIONAL SCIENCES INSTITUTE (PA-EANSI)

Management is submitting this report and recommendations for the proposed award to Burundi of a grant of UA 6 million to finance the Project to Support the East African Nutritional Sciences Institute (PA-EANSI).

I. Strategic Thrust and Rationale

1.1. Project Linkages with Country Strategy and Objectives

1.1.1. The development of human capital in general is a major priority of the Burundi National Development Plan 2018-2027. Efforts to improve nutrition, food security and the agri-food industry are also among the priorities of the Burundian Government, resulting in the inclusion of nutrition indicators and the promotion of market-oriented agriculture in development policy papers, including Burundi Vision 2025 and the National Development Plan (2018-2027). This is especially the case for the development of growth sectors through agriculture-based nutrition and climate change training courses, which will ultimately generate the capacity to increase agricultural and animal production. The project is also in line with the human capital development component of the National Development Plan through performance improvement, collaboration in the health sector and promotion of research in universities and other institutions. It is also in line with the second-generation Multi-sectoral Strategic Plan for Food and Nutrition (PSMSAN 2019-2023), 2nd generation currently being validated, through the strategic goal of enhancing access to quality health and nutrition care and services, including the management of malnutrition in all its forms and enhanced availability of, and access to, highly nutritional, healthy and diversified food. It is also aligned with the Strategic Plan for Nutrition (2019-2023), in terms of managing and strengthening nutrition training and research. The same applies to the second-generation National Agricultural Investment Plan (2019-2022), 2nd generation as well as to the country's Nationally Determined Contribution (NDC) and the National Action Programme to Combat Land Degradation (2005). These various strategic papers highlight the necessity to address malnutrition, hence the need for qualified human resources.

1.1.2 The project is also part of the Country Strategy Paper (CSP 2019-2022) currently being prepared, which seeks to support the Government's efforts to address the drivers of fragility and build resilience in Burundi. The project is in line with the first pillar of the CSP, “development and transformation of agriculture”. It will help to strengthen nutrition security through capacity building for food processing and compliance with quality standards, as well as human capital development through capacity building for better management of malnutrition, which has a high economic and social cost in Burundi. Indeed, studies show that interventions aimed at reducing malnutrition can be highly cost-effective, save lives and increase GDP per capita by up to 11%. The support that the Bank plans to provide to Burundi is also in line with the Bank's Ten-Year Strategy for 2013-2022, through food qualification, technology and security, and with the Bank's Multi-Sectoral Nutrition Action Plan 2018-2025, the focus of which is to combat chronic malnutrition through a multi-sectoral approach. The project is also in line with the Bank's High 5s, including the priority to "Feed Africa" and the priority to "Improve the quality of life for the people of Africa", one objective of which is to improve the people’s nutritional status and living conditions. The Centre's regional scope is also in line with

the priority to "Integrate Africa" through the mobility of students and teachers and the possibility of hosting students from the East and Central Africa regions. It is also in line with the Strategy for Youth Employment in Africa, which aims to build the capacity of 50 million young people, considering that most of the students will be under 35 years of age. The project is also consistent with the priority to integrate Africa, through internships, exchanges, international students, etc.

1.2. Rationale for Bank Intervention

1.2.1 In East Africa, the chronic malnutrition rate remains high at 35.6% (the highest regional rate in Africa) by WHO standards. The acute malnutrition rate is 6% (fairly high by WHO standards) and the overweight rate among children was 4.4% in 2016. This raises the problem of the double burden of malnutrition. In Burundi, in particular, the rate of chronic malnutrition (56% in 2016-2017) is one of the highest in Africa and the world, and the prevalence of acute malnutrition is 5.1%, while anaemia affects 61% of children and 35% of women. In addition, food and nutrition issues are national concerns. Malnutrition (undernutrition or over nutrition) in Burundi can be attributed to multiple and diverse causes, including poverty, lack of access to adequate diets, poor eating habits, excessive marketing and sales of food production, rural exodus and alcohol consumption. These are major risk factors for the health of people, and especially for the most vulnerable categories: children under 5; pregnant women; breastfeeding mothers; and people living with special conditions (HIV/AIDS, tuberculosis, etc.). In addition, national productivity losses due to malnutrition alone represent at least 11 per cent of GDP each year in Africa and Asia.

1.2.2 The issue of nutrition human resources in the East Africa region and beyond is a major challenge. According to a UNICEF study,5 the skilled workforce qualified in nutrition is deficient in both quantity and quality. In terms of quantity, for example, Rwanda had only 74 nutritionists in 2014, compared with a target of 570 (an 87% deficit). The quality deficit is just as alarming. Most countries have established multisector structures for the coordination of nutrition issues, including the SUN (Scaling Up for Nutrition) movement. However, most of the staff in these structures have (i) limited knowledge of nutrition; (ii) weak capacities for the development of nutrition policies and strategies;6 and (iii) limited capacities for multisector coordination, communication and advocacy. In addition, certain skills, such as nutrition skills, are unavailable on the job market and some staff are reluctant to work in difficult-to-access areas. The management of malnutrition requires nutrition training (continuing or initial) as well as the implementation of nutritional policies and strategies. However, these staff mostly lack specific nutritional skills. This clearly raises a need for continuing training in the management of malnutrition cases.

1.2.3 Burundi is one of the 39 African countries with food fortification legislation. A presidential decree was signed in March 2015 regulating food fortification in Burundi. It applies to food imported, manufactured, distributed, packaged, labelled, stored, transported or displayed for sale or distribution in Burundi for human consumption. The implementation of this decree will force the private agro-industrial sector to comply with standards and will also create demand for qualified personnel, particularly in the field of nutrition and food quality. Agro-industrial enterprises met during project appraisal confirmed that assumption and

5 UNICEF, 2014. “Strengthening the human resource base for nutrition in the East and Southern Africa region: Report of the assessment of the nutrition learning needs and gaps; development of a standard mid- to high-level pre-service curriculum for the region”. UNICEF, Nairobi. 6 Often, the needs for nutritionists and dieticians are not always explicit in national plans for the development of health human resources (for example in Kenya, Uganda, Mozambique and Namibia). 2

anticipated that they will need expertise in the areas of quality assurance, standards, food processing technologies, etc.

1.2.4 Similarly, due to the low quality of its agri-food industry products, Burundi finds it difficult to leverage its membership of the East African Community Common Market. Today, trading with Burundi is only in one direction because very few of its products can gain a foothold on that market. In addition, an analysis of the few youth entrepreneurship initiatives in the agri-food sector supported by IFAD, Belgian or Dutch Cooperation, etc., shows that their competitiveness is hampered by the shortage of technical skills in food processing and quality control for manufactured products. Given the high unemployment rate among young people in urban areas (26%7 in Bujumbura) and members of the workforce who have completed higher education (23% in Bujumbura), the establishment of EANSI may be of dual benefit to those in this population segment. It will give this population access to the jobs that will be created thanks to the renewed dynamism of agri-food enterprises on account of the availability of technical expertise, and also allow some of them to leverage the capacities acquired to create their own jobs by becoming entrepreneurs in the agri-food sector, in both urban and rural areas. This will help to reduce the vulnerability of young people on the labour market in both rural and urban areas, as well as to reduce rural exodus.

1.2.5 It is against this backdrop that the Bank will support lasting capacity building actions in nutrition by backing the establishment of a sustainable human resource development mechanism in nutrition science. The project is financed by the resources of Burundi’s TSF allocation. However, the approach adopted is to maintain the EANSI Centre’s vocation as a Regional Centre of Excellence by making it more attractive and open to scientific, academic and professional partnerships with other specialized centres and laboratories in the East Africa region and beyond.

1.3. Aid Coordination

1.3.1 Development assistance in general is coordinated jointly by the Ministry in charge of Finance and the Ministry in charge of Foreign Affairs as part of their duties. Owing to their multi-sectoral nature, nutrition interventions are coordinated from the Office of the Second Vice-President of the country. The Deputy Chief of Staff, who is also the focal point of the Scaling Up for Nutrition (SUN) movement, leads the coordination effort. Nutrition assistance is coordinated through a sector-based group with UNICEF as the lead donor.

1.3.2 The PA-EANSI project, which aims to improve nutrition skills at the strategic level, is complementary to the interventions of partners in the sector. All ongoing nutrition and food security operations are at the community level and the Centre, which is at the strategic level, adds value to those interventions. Therefore, it will offer several opportunities for collaboration by organizing internships for students, sending and financing executives for continuing training, supporting the Centre's research network, and mobilising nutrition experts to deliver courses or seminars for organizations with comparative advantages in the field of nutrition. Therefore, this project will complement the actions already initiated by the Bank and other financial partners. The list of Bank-financed projects in nutrition-related sectors, particularly in the agricultural and social sectors, is annexed to this report. The main partners involved in nutrition are the World Bank, the United Nations system (UNICEF, WFP, WHO, FAO), bilateral partners (Netherlands, Germany-GIZ, etc.), the European Union, as well as several international and national NGOs. A more detailed description of partner interventions is provided in the technical

7 The unemployment statistics are those of the Institute of Statistics and Economic Studies of Burundi (ISTEEBU). The most recent available are from 2014. 3

annexes. Several cooperation possibilities are identified through partner projects. These include the award of scholarships to students to finance continuing training for Master’s degree-level nutrition training under the World Bank project. The EU is funding a project to improve research in Burundi. As part of this project, the Centre’s research partnerships with European research centres in the area of nutrition and food security will enhance the research skills of the Centre's staff.

Table: Key donors in the sector

Size of Sector or sub-sector* GDP exports Labour [Nutrition/health sector] 10% N/A Stakeholders – Public spending (ongoing programmes or projects) Government Donors Amounts (million USD) Period

World Bank 172 2018-2023 TSF 9 2019-2023 UNICEF 20 2019-2023 WFP 16 2019-2020 Netherlands 29 2018-202 European Union 95 2018-2023

Existence of thematic work groups Yes Existence of a comprehensive sectoral programme Yes Role of AfDB in aid coordination Participation

Source: Partners’ documents/Scheduling

II. Project Description

2.1. Project Components

Table 2.1: Project Components Cost (UA Component Description of Components thousand) (i) Development of pedagogic models for the five training courses: clinical nutrition; nutrition and public health; agri-food technology; food quality; and food security and climate change; (ii) annual training of 5 new doctoral students, such that 10 doctoral students will have completed their course by the end of the project, and 50 master's degree students, such that 150 master's degree students will have completed their course at the end of the project, in the following areas: chemical sciences, microbiological sciences, industrial sciences and technologies, human nutrition sciences, public health sciences and sciences related to food security and climate change. Entrepreneurship training modules will also be developed to enhance the employability of graduates; (iii) continuing training for 180 Component 1. students/professionals in the health and agriculture sectors in nutritional sciences; (iv) Pedagogic and scientific mobility for 20 students and 45 teachers and support for participation in institutional 2,692,1 international seminars and symposia; (v) establishment of a competitive fund (project support financing) to support nutrition research (financing of 12 research projects by teachers), and a competitive fund for scholarships (based on criteria of excellence, gender equity and support for the most vulnerable) for about 60% of students in initial training; (vi) development of academic and scientific partnerships with other reference universities, laboratories and regional institutions in the field of quality assurance and skills harmonization, such as the African and Malagasy Council for Higher Education (CAMES) and the Inter-University Council of Eastern Africa (IUCEA); about ten partnership agreements are planned; (vii) building of the linguistic capacities of foreign language teachers and students, particularly English, at the national language laboratory of the University of Burundi; and (viii) development of the Centre's strategic development plan aimed at economic and institutional sustainability.

(i) Rehabilitation of infrastructure provided by the State for the EANSI Centre, i.e., 10 Component 2. buildings (8 offices for FABI, offices for the former NRC and two laboratories of the CHUK); Development of (ii) equipping of the infrastructure (the centre’s administrative offices, classrooms, computer the Centre’s 2,829.3 room, videoconferencing equipment); (iii) establishment of the seven (7) laboratories of the infrastructure centre and additional scientific equipment and materials; and (iv) provision of basic science books to the EANSI centre’s library and subscription to online scientific journals, and books specialized in nutrition. 923.9 (i) Recruitment and setting up of the project team; (ii) administrative, pedagogic, material and financial management of the project; (iii) support for monitoring/evaluation, organization of C- meetings of the Steering Committee, and Multisector Coordination (SUN Secretariat) of the Project Scientific Committee; (iv) annual audit; and (v) development and implementation of a Management communication and awareness-raising plan to stimulate demand for training of nutrition specialists at national and regional levels.

2.2. Technical Solutions Adopted and Alternatives Explored

2.2.1 The technical solution adopted, namely the establishment of a Regional Centre of Excellence for better organization of training at both master's and doctorate levels and skills training, is based on the human resources needs identified for Burundi and the region in terms of qualification and sectors, namely human nutrition and nutrition related to food security. These two sectors are also the main sectors that would provide jobs and opportunities for the Centre’s graduates and are also the sectors where continuing training is sought. The Centre (staff development) will provide a solid human capital base for the design and implementation of national policies, strategies and programmes, as well as for the necessary research and innovation in the field.

2.2.2 With regard to nutrition education in food security sectors, the work-study training format with internships will be the main focus, possibly including a module on entrepreneurship, with a view to increasing employment opportunities for future workers, especially young people and women.

Table 2.2: Technical alternatives explored and reasons for rejection

Alternative Brief Description Reason for Rejection

In addition to the certificate training courses and depending on the needs identified for nutrition Limit activities to certificate Certificate courses alone will not solve the problem management, the project will also provide training courses of capacity to manage malnutrition in the short term continuing training for professionals in particular.

Such an approach will not provide a sustainable Focus on ad hoc on-the-job mechanism for the development of human resources Continue the current approach of providing training to teach health qualified in nutrition science and capable of making additional training in nutrition mainly to personnel about additional a lasting contribution to solving nutrition and food personnel in the health field and in related fields nutrition concepts security problems through innovative policies and strategies and research

Considering that Burundi is a member of the East African Community and also of ECCAS Given the vocation to attract students from the and CAMES, the recommendation was to Offer certificate courses in region and to have exchanges with other provide bilingual training in order to maintain French international universities, French alone as a training the regional vocation. To that end, the project language is not recommended. will support the language centre for enhanced training in French and English for teachers

This option was not chosen because it does not make The National Institute of Public Health and the it possible to bring together clinical nutrition and Training included in existing Faculty of Medicine have integrated nutrition agriculture-related sectors. This multisector aspect courses into their curricula and could go much further must be taken into consideration in nutrition by developing specialties in nutrition. training.

2.3 Project Type

The project is a stand-alone investment operation. The proposed financing instrument is a TSF grant to be awarded to the State of Burundi.

2.4 Project Cost and Financing Arrangements

Table 2.3: Estimated costs by component

USD Thousand UA Thousand COMPONENTS % F.E. L.C. F.E. Total L.C. F.E. Total Component 1: 1 249.0 2 489.0 3 738.0 899.7 1 792.9 2 692.1 66.6% Pedagogic and institutional support Component 2: 200.2 3 727.6 3 927.8 144.2 2 685.1 2 829.3 94.9% Development of the Centre’s infrastructure Component 3: Project management 276.3 1 006.3 1 282.6 199.0 724.9 923.9 78.5% Base cost 1 725.5 7 223.0 8 948.5 1 242.9 5 202.9 6 445.8 80.7% Physical contingencies 0.0 369.5 369.5 0.0 266.2 266.2 100.0% Price escalation 48.0 61.7 109.7 34.6 44.4 79.0 56.2% TOTAL 1 773.5 7 654.1 9 427.7 1 277.5 5 513.5 6 791.0 81.2%

Table 2.4: Estimated costs by category of expenditure

CATEGORIES USD Thousand UA Thousand % F.E. % L.C. F.E. Total L.C. F.E. Total Goods 0.9 2 751.2 2 752.1 0.6 1 981.8 1 982.5 100.0% 30.8% Services 195.4 875.6 1 071.0 140.7 630.8 771.5 81.8% 12.0% Works 149.8 1 092.2 1 242.1 107.9 786.8 894.7 87.9% 13.9% Operation 1 379.4 1 048.8 2 428.2 993.6 755.5 1 742.7 43.2% 27.1% Miscellaneous 0.0 1 455.0 1 455.0 0.0 1 048.1 1 048.1 100.0% 16.3% Base cost 1 725.5 7 223.0 8 948.5 1 242.9 5 202.9 6 445.8 80.7% 100.0% Physical contingencies 0.0 369.5 369.5 0.0 266.2 266.2 100.0% 4.1% Price escalation 4857.0 61.7 109.7 34.6 44.4 79.0 56.2% 1.2% 1 773.5 7 645.1 9 427.7 1 277.5 5 6 791.0 81.2% 105.4% Total 51307.5

Table 2.5: Cost Estimates by category of expenditure (TSF only)

CATEGORIES USD Thousand) UA Thousand % F.E. % L.C. F.E. Total L.C. F.E. Total Goods 0.9 2 751.2 2 752.1 0.6 1 981.8 1 982.5 100.0% 35.1% Services 195.4 875.6 1 071.0 140.7 630.8 771.5 81.8% 13.6% Works 24.7 1 092.2 1 116.9 17.8 786.8 804.5 97.8% 14.2% Operation 406.4 1 048.8 1 455.2 292.8 755.5 1 048.3 72.1% 18.5% Miscellaneous 0.0 1 455.0 1 455.0 0.0 1 048.1 1 048.1 100.0% 18.5% Base cost 627.3 7 223.0 7 8503 451.9 5 202.9 5 6543 92.0% 100.0% Physical contingencies 0.0 369.5 369.5 0.0 266.2 266.2 100.0% 4.7% Price escalation 48.0 61.7 109.7 34.6 44.4 79.0 56.2% 1.4% Total 675.4 7 654.1 8 329.5 486.5 5 513.5 6 000.0 91.9% 106.1%

2.4.2 Project Financing

The project financing is as followings:

Table 2.6: Project financing

SOURCE OF USD Thousand UA Thousand FINANCING L.C. F.E. Total L.C. F.E. Total TSF 675.4 7 645.1 8 329.5 486.5 5 513.5 6 000.0 Government of Burundi 1 098.2 0.0 1 098.2 791.0 0.0 791.0 Total 1 773.5 7 645.1 9 427.7 1 277.5 5 513.5 6 791.0

2.4.3 The expenditure schedule is as follows:

Table 2.7: Expenditure schedule by component (in UA thousand) UA Thousand COMPONENTS 2019/20 2020/21 2021/22 2022/23 2023/24 Total Component 1: 144.1 612.3 718.9 715.6 501.7 2 692.6 Pedagogic and institutional support Component 2: 2 709.7 30.6 24.9 27.0 37.1 2 829.3 Development of the Centre’s infrastructure Component 3: Project management 354.2 137.4 146.5 139.7 146.1 923.9 Base cost 3 207.9 780.3 890.3 882.3 685.0 6 445.8 Physical contingencies 203.8 20.8 17.3 13.9 10.4 266.2 Price escalation 44.4 6.1 7.8 9.5 11.2 79.0 TOTAL 3 456.2 807.2 915.4 905.5 706.6 6 791.0

2.5. Project Area and Beneficiaries

2.5.1 The EANSI Centre will be based in Bujumbura. The overall beneficiaries of the project are primarily Burundi's population estimated at about 11 million, of which 50.22% are women and about 29% are children under five, who are the most vulnerable groups. The direct beneficiaries are FABI and the teaching staff of the Faculty of the Medicine (70), future EANSI students undergoing initial or continuing training (395 by the end of the project), which adds

up to a total of 465 direct beneficiaries, at least 130 of whom will be women8. Indeed, the certificate and continuing training courses that will be offered will help to build nutrition capacities and ensure the sustainable management of malnutrition in the country. Health and agricultural professionals will be specifically targeted by the Master's and PhD training programmes. Targeting these groups will help to create a critical mass of people with the capacity to develop and implement nutrition policies and strategies. By 2047, the Centre is expected to contribute to the training of at least of 1,200 new Master's and 150 new PhD graduates in nutrition, not leaving out the beneficiaries of continuing/skills training. The project will take into account the needs of women, men and young people of all age brackets and social categories, with no exception. The vulnerable segments of the project area population will also be taken into account in terms of access to training through excellence scholarships combined with the candidates’ vulnerability status.

2.6. Participatory Approach for Project Identification, Design and Implementation

2.6.1 The project design is based on a participatory approach that involved all stakeholders: the administration, universities, research institutions, civil society, including international NGOs operating in the sectors, the UN system, health and agricultural professionals, and private sector operators. Several discussions were held with the teaching staff of the faculties of agronomy and medicine, as well as with the Office of the Rector of the University. These discussions provided insights into the clinical nutrition and nutrition components of the agricultural sector. Discussions with the private sector, including small and medium-sized enterprises (SMEs), especially those led by young people, enabled the identification of potential internship areas and incubators for trainees.

This participatory process generated strong enthusiasm for the project, especially since this type of project is the first major initiative aimed at overcoming the lack of well-trained staff who could tackle nutrition problems. The participatory process highlighted the sustainability factor of this project compared to the occasional activities undertaken to address malnutrition, such as food purchases, etc.

2.7. Consideration of Bank Group Experience and Lessons Learned in Project Design

2.7.1 As at 30 May 2019, the portfolio consisted of 16 projects with a total commitment of UA 247.50 million. The portfolio breakdown is as follows: nine national and seven regional public sector projects - for a total cost of UA 247.50 million - and no private sector project. The main focus areas of the projects are Transport (60.6%), Energy (32.9%), Agriculture (4.8%), Multisector (1.2%), and Social (0.4%). The performance of the active national public sector portfolio is considered relatively satisfactory with a score of 3.4 on a scale of 1 to 4, down from the 2017 score of 3.5. Overall, the portfolio has an average age of 3.77 years and an accumulated disbursement rate of 37.34%. All operations are financed by ADF and TSF grants.

2.7.2 The Bank plays a key role in the development of skills in Burundi by financing, among others, infrastructure projects and/or job creation, trades education centres and technical and vocational training schools. In terms of youth employability support, the Bank, in recent years, has also financed skills training courses in tourism and hospitality, in addition to ensuring that all infrastructure projects, particularly in the transport sector, include a professional internship component for graduates of the Faculty of Applied Sciences of the University of Burundi. In

8 See paragraph 3.2.4 for further explanation on the level of representation of women among the direct beneficiaries of the project. 8

the past, the Bank also financed the establishment of the Institute of Public Health of Burundi. The multifaceted support enabled the young beneficiaries to acquire high quality training and to benefit from an initial professional experience, thus helping them to build their socioeconomic integration capacity.

2.7.3 At the regional level, the Bank is already financing the Regional Centres of Excellence in Biomedical Sciences Project into which this project is incorporated and activities are ongoing at the four centres that were launched. The project will address the challenges encountered in setting up the centres of excellence that are already established in Kenya, Rwanda, Tanzania and Uganda, all of which are experiencing low disbursement rates due to delays in the commencement of activities. Under the partnerships that will be forged, experience exchange mechanisms will be set up with these centres to take advantage of the lessons learned from their establishment.

2.7.4 In addition, the 2018 portfolio review highlighted inadequacies that were corrected in the design of this project in order to improve performance. These include: (i) weaknesses in project design/preparation; (ii) project commencement delays; (iii) inadequate consideration of the sustainability of project outputs; and (iv) weak capacity of the staff of the Project Management Unit. Moreover, Bank-financed projects in Burundi generally fulfil the conditions precedent to first disbursement within the set timeframe. However, a number of projects were delayed due to the requirement of prior agreements signed with certain service providers involved in the project implementation, as well as to the slow process of recruiting key staff whose hiring was one of the conditions precedent to disbursement. In addition, it is worth noting that for some infrastructure projects or multi-donor projects, even when the conditions precedent are met in time, the first disbursement is delayed by the lengthy procurement process. For this project, the problem was addressed by establishing stringent but realistic country- specific conditions, while taking the necessary steps to help the Government fulfil them. Similarly, the project took into account one of the lessons learned from the appraisal report on Bank strategies and programmes in Burundi for the period 2004-2015, which highlighted the weakness in the area of targeting to ensure that vulnerable segments of the population are sufficiently included among the project beneficiaries.

2.7.5 Specifically, lessons learned from the implementation of Bank interventions were incorporated into the project design:

Table 2.7 Consideration of Bank Group experience and lessons learned Key Lessons and Experiences Action Taken in the Design of PA-EANSI Weaknesses in project design/preparation To ensure that the evaluation of the costs of the rehabilitation works done by the Government paves the way for the launch of the procurement process, the Bank included an architect in the project design team to improve the quality of technical studies. The architect worked with the engineering team of the University of Burundi in order to strengthen ownership of the project by the donee.

Poor integration of local partnerships to In the project design, account was taken of the contributions of national research strengthen synergies between players in the institutions to the organisation of the training to be provided at the Centre, areas of intervention. especially the possibility for the shared use of existing laboratory equipment.

Delays in setting up the project team Discussions were held with the line Ministry, which grave assurances that the project team would be set up within a month of the project approval.

Key Lessons and Experiences Action Taken in the Design of PA-EANSI Failure to take into account the sustainability A decree establishing the Centre of Excellence in Nutritional Sciences has of the project outputs. already been issued and the allocations for the financing of the Centre’s operation should be included in the next Budget Act. Similarly, integrating doctoral and post-doctoral training into the project will help to ensure its sustainability. Weak capacities of the staff of project Following the analysis of the fiduciary management capacities of the University executing agencies of Burundi, it was decided that financial management and procurement experts would support the Centre in order to minimize fiduciary risks and build the capacity of existing staff. Inadequate targeting of vulnerable groups To enable candidates who obtained high scores in the entrance test to benefit from the training, criteria will be adopted to allow them access to a scholarship during the training period.

2.8. Key Performance Indicators

2.8.1 The key performance indicators identified and the outcomes expected at project completion are presented in the results-based logical framework as follows: (i) decline in chronic malnutrition in the long term; (ii) rate of increase in the number of staff members of the health centres trained in nutrition; (iii) number of agribusiness enterprises that have formally adopted quality standards; (iv) number of curricula for training streams; (v) number of recent master's graduates (30% of them female) in the new streams; (vi) entrepreneurship training module developed and validated for training at the master's level; (vii) number of beneficiaries of training at the doctoral level; and (viii) number of research projects funded (50% of which are led by female researchers).

2.8.2 In addition to the outcome and output indicators presented in the logical framework, there are also indicators for monitoring project implementation performance. These are mainly: (i) procurement timeframes; (ii) the average project progress indicator (PI); and (iii) disbursement rate trends relative to expenditure schedule. These indicators will be monitored during supervision missions and in the day-to-day management of the project.

III. Project Feasibility

3.1. Economic and Financial Performance

Table 3: Key economic data

Economic IERR = 28.18% ; Analysis ENPV =USD 49.90 million

3.1.1 The project has multiple financial and socioeconomic benefits. It will enhance nutrition security and economic growth in Burundi, in particular, and in the East African Economic Community as a whole. Above all, it will lead to the training of 1,200 students in the nutrition science by 2047. Given the social nature of the project, only the economic return was assessed and the sustainability of the Centre of Excellence's infrastructure is the financial objective of the project.

3.1.2 Economic return is measured through the benefits accruing to the direct beneficiaries who, in this case, are the students trained in nutrition science. The economic rate of return reflecting this benefit stands at 28.18%. This rate is calculated on the basis of the infrastructure investment and operating costs and the quantifiable benefits of the project represented by: the economic value of the additional payroll created as well as the 50 Master’s and 5 PhD students who will be trained by the Centre on a yearly basis from 2026 to 2028. It is estimated that these 10

future nutrition science experts will earn between 33 and 70% more than the average teacher in Burundi. Using a capital opportunity rate estimated at 10%, a net present value of USD 49.90 million is found, reflecting the significant impact of the project on all economic agents, including the direct beneficiaries. The project has other indirect benefits such as the long-term enhancement of nutrition security and economic growth in Burundi in particular and in the East African Economic Community in general. These benefits are difficult to quantify and were not factored into this analysis.

3.1.3 The sensitivity of the project's economic performance was analysed by simulating (i) a 10% increase in investment costs; (ii) a 10% reduction in profits; and (iii) a combination of the two scenarios. This analysis shows that the project’s rates of return and net present value remain at acceptable levels, while the internal rate of return remains above the discount rates. The economic internal rate of return (EIRR) ranged from 25.87% to 27.07% and the net present value (NPV) also remained positive, ranging from USD 43.24 million to USD 49.07 million.

3.2. Environmental and Social Impacts and Mitigation Measures

3.2.1 Environmental Impacts: Classified in Category 2 in accordance with AfDB Environmental and Social Safeguards, the project was the subject of an environmental and social impact assessment (ESIA), complete with an environmental and social management plan (ESMP) which revealed that the environmental and social impacts are of limited scope and may be mitigated considerably through the strict implementation of the mitigation measures proposed by the ESMP at a cost of BIF 468,304,775. A summary of the ESMP must be published on the AfDB Website 30 days prior to Board approval. The application for the environmental compliance certificate was submitted by the Ministry of the Environment on 7 June 2019. The major impacts are mainly (i) contamination of the worksite by asbestos dust during the demolition of old buildings. Indeed, component II of the project concerns rehabilitation of the buildings of the three sites of the Faculty of Agronomy and Bioengineering (FABI), the Kamenge University Teaching Hospital (CHUK) and the National HIV/AIDS Research Centre (CNR). However, the false ceilings and roofs of the buildings of the Faculty of Agronomy and Bioengineering (FABI) and the Kamenge University Teaching Hospital contain fibrocement with toxic substances such as asbestos, and must be dismantled for safety purposes; (ii) non-compliance of pipes containing lead. The galvanized piping of the three sites contains lead and must be replaced. The galvanized pipes have deteriorated completely from the inside. Their lead content may accumulate in the human body over time, causing a host of adverse health effects; and (iii) exposure to odours emanating from laboratory chemicals.

3.2.1.1 A few expired hazardous chemicals from the agro-chemistry and soil physics laboratory of the Faculty of Agronomy and Bioengineering (FABI) are a permanent danger to the occupants of these buildings and will need to be destroyed according to the applicable standards and in a safe manner prior to the start of works; (iv) water pollution from laboratory biomedical waste:. Liquid chemicals from the anatomical pathology laboratory and other liquid products from the Kamenge University Teaching Hospital are discharged into the wastewater treatment plant of the same Centre, which has not been operational for more than 10 years. These same hazardous products are conveyed to the Buterere treatment plant (the only one in the country), which has not been operational for two years. Lake Tanganyika, the only outlet, is polluted by these liquid chemicals from the Kamenge University Teaching Hospital.

3.2.1.2 During its operational phase, the Centre of Excellence will manage biomedical waste from the two pathology and biochemistry laboratories of the Kamenge University Teaching Hospital and the five laboratories (agro-chemistry and soil physics, food biotechnology, food

microbiology, phytopathology and zootechnics) of the Faculty of Agronomy and Bioengineering (FABI). The project will also be responsible for the management of all storm water that is now being poorly managed within FABI, the future EANSI.

3.2.1.3 The choice of sites for borrow pits and/or quarries must be carefully evaluated in cooperation with other stakeholders, including the Ministry of the Environment and Mines, and of course local elected officials. Indeed, the operation of borrow sites for building materials could generate environmental and social impacts in that it may affect farmland and cause nuisance to local residents. Other negative impacts relate, in particular, to the risk of works- related injury, pollution and nuisance, and the risk of contamination of soil and water resources are quite localized and most of them can be avoided and/or technically and financially controlled by strictly implementing the measures planned in the ESMP, developed to this end and in compliance with the environmental and social safeguards of the Burundian Government and the AfDB.

3.2.1.4 Systematic soil revegetation through the planting of forage or vetiver grass and agroforestry trees that can stabilize the soil and be utilized by local communities (calliandra, moringa, mango and avocado trees). Revegetation will mainly help to reduce the erosion of slopes and embankments, as well as erosion caused by poorly constructed ditches, waterways and collectors. This initiative is considered the most significant positive environmental impact and will fully contribute to building resilience to climate change. The project will help to improve the collection and management of biomedical waste and sanitation within the facilities. In addition, the increased use of health services, especially at the CHUK by the population because of the improved communication, the enhanced capacity of the staff and the procurement of appropriate material and equipment will lead to an improvement in food safety, quality and hygiene.

3.2.1.5 However, the absence of some important codes, such as the hygiene and sanitation code, the health code, among others will require capacity building for the Project Management Unit (PMU), including by recruiting a specialist for the dismantling and safe disposal of materials containing asbestos and lead.

3.2.2 Social: The various activities implemented under the project will contribute significantly in the long term to improving the nutrition of vulnerable groups. In the short term, these activities will increase the number of nutritionists with the capacity to support the prevention and treatment of malnutrition, thereby improving the health of the population. In the long term, the project should contribute to Burundi's goal of reducing the prevalence of chronic malnutrition among children under 5 from 56% to 46% by 2025. When completed, this project will also help to create self-employment, especially for graduates of food technology streams, which will help to alleviate poverty. This Centre will also work towards the development of human capital and improvement of the food and health security of the people, especially the most vulnerable groups such as women, children and teenagers.

3.2.2.1. The project will have a positive impact on young people and women by introducing training courses leading to employment and facilitating entrepreneurship. Each training course will be directly linked to clearly identified employment categories. However, the negative impacts of the project could be (i) the contamination of employees and the university community by dangerous and harmful products such as asbestos, lead, expired or improperly stored laboratory chemicals; (ii) the risk of conflicts between current and future occupants of certain premises, given that some buildings reallocated to the Centre already housed laboratories or teaching and research units.

3.2.3 Climate Change: Burundi, like many other countries, is increasingly affected by climate change. The project may be vulnerable to climate change risks because it is located in the Bujumbura metropolitan area, which is often exposed to floods and erosion. The choice of borrow pit sites and/or quarries should be carefully assessed jointly with other stakeholders to avoid weakening the slopes. The project will contribute to climate change adaptation and resilience building in the nutrition sector by providing access to high-quality training and research in nutrition sciences, including modules on change climate. The training will, therefore, provide modules dealing with the impact of climate change on food and nutrition security, given that climate change adversely affects agricultural production, albeit indirectly. The project is a response to the risks of epidemics, food insecurity and acute malnutrition associated with climate change. Therefore, it will contribute to the adaptation component of the country's nationally determined contribution (NDC) and the Bank's Climate Change Action Plan 2016-2020. Component 1 contributes to climate financing (to the tune of 42.2% of the budget). The handling of construction materials as well as the disposal of debris and recycling of wastes at the laboratory during the implementation of Component 2 of the project (rehabilitation of the infrastructure made available by the State) will be carried out bearing in mind the vulnerability of the area to climate change. The project will ensure the use of high- quality and low greenhouse-gas emission equipment in rehabilitation activities.

3.2.4 Gender: Burundi came close to reaching parity in girls' enrolment in 2015. At all levels, from pre-school to the end of secondary education, the disparity between boys and girls is very small (the enrolment rates of girls and boys are roughly at par). In secondary education, for example, the enrolment rate was 50.9% for girls and 49.8% for boys in 2017. The gap widens at the higher education level where enrolment rates are 3.7% for girls and 8.7% for boys. According to the 2017 Demographic and Health Survey (DHS), the median age at first marriage is 20.3 years for women versus 24.1 years for boys. Inequalities are of course present and persistent.

3.2.4.1 However, this mind-set is changing and many women are embarking on entrepreneurship, for instance. The step is not easy because the society cultivates fear, especially when the initiative is originating from women. Indeed, in this patriarchal society, access to financial and landed capital is almost impossible ("the woman inherits neither the father’s nor the husband’s property"). Women are generally less educated than men (36% of women have never been to school, compared with 24% of men aged 15-49 (according to the 2017 DHS).

3.2.4.2 With regard to maternal and child health, which is closely linked to the issue of nutrition, Burundi has made considerable strides, although the Millennium Development Goals (MDGs) have not been achieved. Indeed, the maternal mortality ratio went from 500 to 334 maternal deaths per 100,000 live births between 2010 and 2016, while the Sustainable Development Goal (SDG) target is less than 70 deaths by 2030. According to EDSB III, nearly one in five women is lean (19%) and 6% of women are moderately and severely lean. In contrast, 6% of women are overweight and 2% are obese. Regarding nutrition between 2010 and 2016/2017, it was noticed that there is a slight increase in the percentage of women with a body mass index (BMI) below 18.5 and who therefore are in a state of chronic energy deficiency (from 16% to 19%). It should also be noted that the percentage of women aged 15 to 49 who are lean is significantly higher in rural than in urban areas (20% versus 12%), probably because the socioeconomic vulnerability rate is higher in rural than in urban areas.

3.2.4.3 The project is classified in Gender Marker Category 3. The project will make gender mainstreaming a crosscutting issue, affecting all components of the programme, with a focus 13

on the empowerment of women, especially as they play a key role in the nutrition sector. At least 30% of those targeted by the training will be women (which would still be more than double the proportion of girls taking science courses at the University of Burundi). At FABI, for example, 11.5% of the teaching staff are women (while girls make up 13% of all students). Since the goals must be realistic, the project plans to increase the number by more than 100%, compared with the initial number for this operation. Once achieved, the efforts to enrol more female students by the project will be continued. To that end, the project will carry out awareness activities to promote women's participation. It will introduce incentives to encourage the enrolment of more women, such as: (i) scholarships based on a combination of excellence, gender and inclusion criteria; (ii) a minimum admission quota of 30% for women; (iii) networking with associations of women scientists in Africa; (iv) conduct of women's recruitment campaigns through professional organizations in the nutrition/food security sector; (v) provision of specific leadership courses; and (vi) mentoring programmes. The teaching staff of the University of Burundi has only a small proportion of women, which is largely due to the low representation of girls among students. Female representation needs to be stepped up by enrolling more women and encouraging them to pursue a university career and to continue studies up to the doctorate level. At FABI, for instance, women account for 11.5% of the teaching staff (while girls make up 13% of all students). This issue will be reviewed in detail during the preparation of the strategic plan of the EANSI Centre. Concrete measures will be proposed to increase the number of women in the future recruitment of teachers, while guaranteeing EANSI’s standards of quality and excellence. The Centre’s premises will be equipped with hygienic sanitary facilities that will be subject to regular maintenance. The security of the building will be ensured to allow students to work outside class hours (evenings and weekends). A budget dedicated to gender issues is available in the technical annexes.

IV. Implementation

4.1. Implementation Arrangements

4.1.1 Implementation Modalities

4.1.1.1 The University of Burundi is identified as the executing agency of the project. A Project Management Unit (PMU) will be set up in the said University. This Unit will be headed by the EANSI Director who will also act as the PMU Coordinator. Concerning financial management, there will be an Administrative and Financial Officer, a Cashier, an Accountant and a Secretary. The other key staff are the Procurement Officer, the two academic focal points in charge of scientific programmes (one for the health component, one for the food quality component), the person in charge of continuing education who will also be responsible for communication, partnership development and resource mobilisation, the procurement officer and the civil engineering specialist. The Project Implementation Unit will be supported by a Consultant in charge of the ESMP. The Project Coordinator will be responsible for internal monitoring and evaluation. External monitoring and evaluation (mid-term and final evaluation) will be performed by an independent consultant. The Centre will be headed by a Director who will be appointed by the Government no later than three months after project approval by the Board at the end of September 2019.

4.1.1.2 A Scientific Committee chaired by the EANSI Director will also be set up to validate all technical and scientific aspects of the training during the first year following project approval. This Committee will consist of no more than 10 members, including (i) the EANSI Director; (ii) two academic focal points; (iii) the Director of Quality Assurance at the University of Burundi; (iiii) the representative of the National Council for Higher Education (CNES); (iv)

a representative of the Ministry of Health and any other key experts to be identified in Burundi or internationally, through the Centre’s academic/scientific partners, but the number of such experts shall not exceed four (04). The tasks assigned to this Committee will be set out in the project procedures manual.

4.1.1.3. The Steering Committee will consist mainly of MESRS, the Ministries in charge of Agriculture, Health, Gender and Social Affairs, as well as the Ministry in charge of the East African Community, and an entity representing the private agro-industrial sector. This Committee will be chaired by MESRS, which will organize and facilitate meetings on a half- yearly basis to deal with project implementation guidelines and review the progress achieved. It will be responsible for defining the strategic direction of the project and be mainly tasked with coordinating the various bodies involved in PA-EANSI. It will work in close cooperation with other entities of the Centre established by decree, namely the Board of Directors and the Board of the Institute. The detailed description of the Centre’s institutional bodies is provided in the annex. The Steering Committee will validate the decisions of the Scientific Committee, as well as the project’s budgeted annual action plans. The Steering Committee will meet once every six months to look into the implementation guidelines and review the progress of the project.

4.1.2 Procurement

4.1.2.1 Burundi's country public procurement system is currently governed by Law No. 1/04 of 29 January 2018 amending Law No. 1/01 of 4 February 2008 relating to the Public Procurement Code. The procurement legislative and regulatory framework consists of the law and decrees relating to the organization and operation of the Public Procurement Regulatory Authority (ARMP), the National Directorate of Public Procurement Control (DNCMP) and Public Procurement Management Units (CGMP), as well as ordinances setting thresholds for procurement, control and publication of contracts. The scope of public procurement control (PPC) covers all procurements by the contracting authorities as well as all types of public procurement without waivers, except for contracts of a confidential nature incompatible with any form of competitive bidding or publicity, or contracts concerning fundamental national security interests. Currently, most public procurement instruments are available on the ARMP Website, which is the public procurement portal.

4.1.2.2 Following the assessment of Burundi’s public procurement system (PPS), the procurement risk was deemed moderate. This generic country risk was re-assessed in the context of the implementation of all the activities covered by the PA-EANSI project to be taken into account in determining the overall project procurement risk. The overall project procurement risk rating (PPRR) at the time of appraisal is deemed moderate. As a result, Burundi’s public procurement system will be used for the procurement of goods and consultancy services related to (i) rolling stock; (ii) scientific books; (iii) pedagogic books; (iv) preparation of an entrepreneurship training module for the master’s degree level; (v) preparation of an optional training module in nutrition; (vi) establishment of a financial management system for the project; and (vii) implementation of the environmental and social management plan (ESMP). Other procurements that pose a substantial risk in case of use of the country procurement system (CPS) will be carried out following the Bank's procurement methods and procedures (PMPs), in accordance with the "Procurement Policy for Bank Group-Funded Operations" of October 2015, using the Bank’s relevant standard competitive bidding documents (SCBDs).

4.1.3 Procurement Risk and Capacity Assessment (PRCA): The country, sector and project risk assessment, and the assessment of the procurement capacity of the Executing Agency (EA) were carried out. A market analysis was also conducted to obtain information on market characteristics, as well as factors that may affect competition and the key players in the sector markets. The outcomes of the assessments and the market analysis informed the decision on the choice of the country procurement systems (CPS) for certain project activities and procurement methods and procedures (PMPs) for other activities with a substantial risk. They also enabled the planning of procurement, the structuring of contracts, the choice of the procurement methods and procedures (PMPs) or country procurement systems (CPS) that are best-suited to the desired objective, and the definition of the framework for Bank review and supervision. Appropriate risk mitigation measures were included in the PERCA Action Plan in Annex B5. A procurement audit will be conducted by an independent firm.

4.1.4 Financial Management: The existing financial management systems of the Agency and the Project Implementation Unit need to be overhauled in order to reduce the overall fiduciary risk deemed substantial. The absence of real accounting systems will be addressed by aligning the financial management system with Bank standards. One of the key measures will be the adoption of the administrative and financial procedures manual (see technical annexes). The weaknesses noted include: (i) the absence of a budget coupled with a schedule of project activities; (ii) the ill-adapted procedures manual of the Executing Agency; and (iii) the absence of an administrative, financial and accounting procedures manual for the project. Moreover, the project does not yet have a Director, a Financial Manager, an Accountant and a Cashier. They will be appointed during the establishment of the Project Management Unit. Other weaknesses that need to be addressed to streamline the financial management system include: (i) level of monitoring of fuel, missions and meetings at the Executing Agency; (ii) the lack of a capital assets register for the project; (iii) the lack of a general, analytical and budgetary accounting plan for the project; (iv) the absence of project software; (v) the absence of projected cash management plans for the Executing Agency and the Project; (vi) the absence of progress reports for the project; and (vii) inadequate staffing of the Internal Audit Service of the Executing Agency. The recommendations issued to address these weaknesses, as well as those integrated into project activities, will be implemented. They mainly concern (i) the preparation of the project’s administrative, financial and accounting procedures manual; (ii) the appointment of a Director for the Centre and two academic focal points; (iii) recruitment of a Financial Manager and an Accountant; (iv) the establishment by the Project Implementation Unit of a record for monitoring fuel, meetings and missions; (v) the adoption by the Financial Manager of the Project Executing Agency at project commencement of a project-specific general, analytical and budgetary accounting plan; (vi) the procurement of software with general and analytical accounting, and budget management modules; and (vii) the establishment, as soon as possible, of a projected cash-flow plan.

4.1.5 Disbursements: TSF resources for this project will be disbursed in accordance with the provisions of the Bank’s relevant disbursement manual. The disbursement methods proposed for the project are: (a) the special account method for operating expenses of the Project Management Unit (PMU); (b) the direct payment method for the settlement of expenses relating to the procurement of goods, services and works; and (c) the reimbursement method in the event of pre-financing by the national counterpart of expenditure chargeable to the TSF resource allocation and for which prior authorized had been obtained from the Bank. Two (2) special accounts, one in foreign exchange and the other in local currency, will be opened in the project’s name in the Burundi Central Bank and will be mainly used to lodge TSF resources.

In addition, the project will open another special account to lodge funds from the State counterpart fund. Transactions on these different special accounts will require two signatures, namely that of the Coordinator and that of the Administrative and Financial Officer (AFO).

4.1.6 Audits: The Project Management Unit will establish external audit mechanisms for the project's financial statements and internal oversight system. Annual financial statements will be audited by independent external auditors, recruited on a competitive basis and in accordance with the terms of reference agreed on with the Bank, and in line with the Bank's requirement that audit reports be transmitted no later than six months after the end of the financial year following that for which the audit was conducted. The University of Burundi will post two additional internal auditors before 31 December 2019 made available by the Rectorate. The project will support their training in audit techniques and, at project commencement, hire an external audit firm.

4.2. Monitoring: Project implementation will be monitored by the PMU under the supervision of the EANSI Director. The PMU will prepare quarterly reports on the progress of the project’s physical and financial implementation, using Bank formats. The Steering Committee will monitor the project outputs on a regular basis. The activities of the consultant in charge of mobilization and partnership will also be regularly monitored. The information collected during the project monitoring exercise could, if necessary, feed the monitoring and evaluation system of the ministries involved and the University of Burundi in relation to the various statistics. At the Bank, the project will be monitored through: (i) half-yearly supervision missions, conducted in cooperation with the State of Burundi; (ii) quarterly progress reports submitted by the Donee; and (iii) annual audit reports to be submitted by the Donee no later than six months after the end of each fiscal year.

4.3. Governance

4.3.1 In the area of economic and financial governance, Burundi has achieved encouraging results since the 2015 crisis, by initiating a number of structural reforms in public finance management and mitigating fiduciary risks. However, improvements are still needed to strengthen domestic resource mobilisation, enhance public resource programming and allocation. Similarly, although progress has been achieved in terms of improving the public procurement system to bring it up to the required standards, given that the slow procurement system remains one of the major weaknesses in the project implementation. At the project level, risks related to fiduciary issues will be mitigated, including by building the procurement and financial management capacity of the PMU.

Similarly, given that the fight against malnutrition must be viewed holistically, the project will contribute to improving leadership in the implementation of various sector policies, including activities aimed at improving nutrition. Thus, leadership will be strengthened through the support of the SUN Secretariat under the Office of the Second Vice-President, the entity that ensures the multi-sectoral coordination of all stakeholders, including MESRS, the entity in charge of this project.

4.3.2 At the project level, the various committees set up will play their technical role and ensure the proper coordination of activities and the efficient use of resources. Moreover, the participation of several ministries and civil society in the Steering Committee will lead to good governance of the project.

4.4. Sustainability

4.4.1 The project aims to support the implementation of EANSI, which is meant to operate sustainably like other public institutions of higher learning in the country. Therefore, it is necessary for the Government to include EANSI in the Budget Act. That measure is underway, considering that the decree setting up the Centre of Excellence was issued since 2018 and it will be taken into account in the 2019-2020 Budget Act. As the Centre develops, the Government will provide the teaching and operating resources so that, by the end of the project, the Centre may be able to function independently. To complement these Government efforts, the project will finance a study for the development of a strategic development plan for the Centre, which will specify, among others, the activities that will be undertaken to diversify the sources of financing and generate own resources. Issues related to the development of entrepreneurship, including the establishment of a business incubator, a single window for nutrition advice and the marketing of products processed by students, will receive special attention in this strategic plan, with a view to further enhancing the relationship between the private sector and the Centre’s potential clientele.

4.4.2 The Centre could guarantee its autonomy through the development of flexible (certificate- or skills-oriented) continuing training programmes targeting health professionals and by offering services (training, capacity building, research support and quality control) targeting the needs of private agribusiness enterprises. To that end, the possibility of accrediting the Centre’s future laboratories to issue certificates underway. Moreover, the sustainability of the project is guaranteed by the fact that it is anchored within the MESRS and the University, and that the Centre is an entity established by decree. Also, the scholarship holders will undertake to serve the State in accordance with the regulations in force. This will enable new doctorate students to be involved in teaching and research at the Centre upon graduation.

4.5. Risk management: The main risks identified are: (i) possible instability during the 2020 elections; (ii) reluctance of private enterprises to align with quality standards; (ii) lack of resources; (iii) problems of funding for the training and lack of interest in nutrition; and (iv) problems relating to the classification of EANSI graduates by the Ministry of Labour. The recommended mitigation measures are: (i) the Burundi Government’s commitment, continuous dialogue, and willingness of donors to support the Centre; (ii) inclusion of a member of the Health Ministry into the Technical and Scientific Committee; (iii) establishment of excellence- based scholarships; (iv) revision of the classification of positions to ensure the smooth integration of nutritionists into ministries; (v) establishment of a mechanism for promoting partnership and strategic programming; and (vi) close cooperation with the EAC Secretariat, governments and donors.

4.6. Knowledge Building

The results of the research conducted at the various research laboratories will be disseminated and used in the implementation of nutrition policies and strategies in Burundi and in the region in general. Exchanges between teachers and students within the region and across the world will also lead to knowledge sharing. A virtual library will be set up for use as a basic literature review tool by students and teachers doing research. Partnerships with other research institutions will also serve as a means of knowledge building. In addition, students’ dissertations and theses produced under the project will generate knowledge through articles in journals that will be published regionally and internationally. Through the internships offered by private sector enterprises, best practices concerning partnership with the private sector will also be documented. The project will carry out the following activities in this context: (i) dissemination

of improved technologies through food technology training; (ii) reports of exchanges with universities and student visits to universities in the region. Lastly, lessons learned in the course of the project implementation will also be used by the Bank in the design of its future projects, including elsewhere in Africa.

V. Legal Framework

5.1. Legal Instrument

5.1.1 The legal framework of the project will be a Grant Protocol Agreement signed between Burundi and the Bank.

5.2. Conditions Associated with Bank Involvement

5.2.1 The project’s legal framework will be an ADF/TSF Grant Agreement between Burundi and the Bank. The Agreement will be signed to the satisfaction of both parties in form and substance, and will include the terms and conditions of use. The Grant Agreement will become effective on the date of its signature.

5.2.2 In addition to the effectiveness of the Grant Agreement, the first disbursement of the grant will be subject to the fulfilment by the Donee, to the satisfaction of the Bank, of the following conditions:

(i) provide evidence of the appointment of key members of the Project Management Unit, namely: the Director of the Centre, the two academic focal points responsible for scientific programmes (one for the health component and the other for the food quality component)

(ii) provide evidence of recruitment of the administrative and financial manager;

5.2.3 With respect to other conditions, the Borrower/Donee shall also fulfil the following conditions to the satisfaction of the Fund, after the first disbursement:

(i) provide evidence, within three months, of the adoption of a project administrative, accounting and financial management procedures manual;

(ii) sign, within six months, agreements with the main partners identified (CELAB,ISABU, IRRI, CNTA, BBN, African Nutritional Sciences Research Consortium / Columbia University, University HOHENHEIM, Hawasa University, CAMES, RUFORUM) and which must have been submitted to the Bank for approval;

(iii) recruit for the PMU, within three months, the procurement specialist, the accountant, the civil engineer and the manager in charge of communication, partnership development and. resource mobilization;

(iv) set up, within six months, the Steering Committee whose composition shall be subject to Bank approval;

(v) implement the ESMP; and

(vi) maintain the PMU in place throughout project implementation.

5.3. Compliance with Bank Policies

This project complies with all applicable Bank policies. It will be implemented as part of the Bank's intervention strategy in Burundi defined in the CSP (2019-2023).

VI. Recommendation

The Bank’s Management recommends that the ADF Board of Directors approve the proposed award of a grant of UA 6 million to Burundi, for the purpose and under the conditions set out in this report.

Annex I: Comparative Socioeconomic Indicators of Burundi

Burundi Selected Macroeconomic Indicators

Indicators Unit 2010 2014 2015 2016 2017 2018 (e) 2019 (p)

National Accounts GNI at Current Prices Million US $ 1 987 2 812 2 907 3 119 3 342 ...... GNI per Capita US$ 227 284 285 296 308 ...... GDP at Current Prices Million US $ 2 032 2 706 2 814 2 874 2 991 3 085 3 412 GDP at 2000 Constant prices Million US $ 988 1 174 1 170 1 191 1 188 1 205 1 210 Real GDP Growth Rate % 5,1 4,2 -0,3 1,7 -0,2 1,4 0,4 Real per Capita GDP Growth Rate % 1,8 1,2 -3,3 -1,4 -3,3 -1,8 -2,7 Gross Domestic Investment % GDP 17,5 15,2 11,7 9,6 11,2 11,8 12,4 Public Investment % GDP 7,9 4,9 3,3 3,1 3,6 3,9 3,7 Private Investment % GDP 9,7 10,3 8,5 6,5 7,5 7,8 8,7 Gross National Savings % GDP 3,7 -3,4 -6,7 -4,1 -5,7 -8,0 -8,8

Prices and Money Inflation (CPI) % 6,6 4,4 5,6 5,5 16,1 12,7 22,1 Exchange Rate (Annual Average) local currency/US$ 1 230,7 1 546,7 1 571,9 1 654,6 1 735,2 1 820,5 1 914,5 Monetary Growth (M2) % 20,1 14,6 5,5 1,5 10,6 ...... Money and Quasi Money as % of GDP % 31,2 32,0 32,0 30,2 30,6 ......

Government Finance Total Revenue and Grants % GDP 25,4 19,8 16,7 16,3 15,9 16,1 15,9 Total Expenditure and Net Lending % GDP 32,6 23,6 24,4 23,0 22,5 24,8 24,7 Overall Deficit (-) / Surplus (+) % GDP -7,2 -3,8 -7,7 -6,6 -6,5 -8,8 -8,8

External Sector Exports Volume Growth (Goods) % 16,4 23,1 5,6 14,8 -4,8 2,4 4,9 Imports Volume Growth (Goods) % 87,0 10,3 -35,9 -2,2 -1,9 4,4 0,9 Terms of Trade Growth % 51,7 25,4 -42,7 28,0 -2,9 -11,7 1,0 Current Account Balance Million US $ -301 -394 -374 -406 -346 -321 -313 Current Account Balance % GDP -14,8 -14,5 -13,3 -14,1 -11,6 -10,4 -9,2 External Reserves months of imports 4,5 3,5 1,7 1,7 2,9 3,2 ...

Debt and Financial Flows Debt Service % exports 1,5 14,4 20,7 21,8 22,5 21,1 21,6 External Debt % GDP 22,4 18,9 18,2 16,7 15,3 14,9 14,1 Net Total Financial Flows Million US $ 691 539 260 734 545 ...... Net Official Development Assistance Million US $ 628 515 367 742 428 ...... Net Foreign Direct Investment Million US $ 1 47 7 0 ......

Real GDP Growth Rate, 2007-2019 Inflation (CPI), Current Account Balance as % of GDP,

2007-2019 2007-2019 % 6,0 30 0,0 5,0 25 -2,0 4,0 -4,0 20 -6,0 3,0 15 -8,0 2,0 -10,0 10 1,0 -12,0 -14,0 5 0,0 -16,0

0 -18,0

2016 2017 2018 2019 2009 2013 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2010 2011 2012 2014 2015 2017 2018 2019

2007 2012 2014 2019 2009 2010 2011 2013 2015 2016 2017 2018 -1,0 2008

Source : AfDB Statistics Department: African; IMF: World Economic Outlook,October 2018 and International Financial Statistics, October 2018; AfDB Statistics Department: Development Data Portal Database, October 2018. United Nations: OECD, Reporting System Division. Notes: … Data Not Available ( e ) Estimations ( p ) Projections Last Update: March 2019

Annex II: Table of Bank Portfolio in Burundi

Project No. / Effectivenes Disburse Approval Completion Grant Amount No. PROJECT NAME Financing No. s Date ment Date Date Amount (UA) Disbursed Rate 1 2 3 4 5 6 7 8 1 Project to Support the 17/05/2017 30/09/2020 877 000 40,40% 354 308 Development Strategies Process P-BI-I00-002 16/08/2017 2 Support Project for the Socioeconomic Reintegration of P-Z1-IZ0-026 25/05/2016 13/10/2016 31/12/2020 770 000 35,93% 276 661 Young People and Women -- PARSEJF Support Project for the Socioeconomic Reintegration of 3 P-Z1-IZ0-028 25/05/2016 07/11/2016 31/12/2020 380 000 32,73% 124 374 Young People and Women - PARSEJF (CIRGL) OBR Capacity Building Support 4 Project P-BI-KF0-007 02/01/2019 04/04/2019 31/12/2021 1 000 000 0% 0

RN-3: Mugina-Mabanda-Lake Nyanza And Rubavu-Gisiza 5 P-Z1-DB0-073 27/06/2012 23/07/2012 31/12/2019 27 500 000 83,71% 23 020 250 Road Development and Paving Project Rmunge-Giteza and Kabingo- 6 Kasulu-Manyovu Road P-Z1-DB0-224 22/11/2018 18/12/2018 31/12/2024 47 250 000 0,00% 0 Rehabilitation Project RN-15: Gitega-Nyangungu- 2100155020566 29/06/2011 31/12/2019 10 000 000 41,34% 7 Ngozi Road Development and Paving Project - Phase 2 5900155001852 29/06/2011 31/12/2019 32 000 000 98,65% RN-18: Nyakararo-Mwaro - 2100155034067 01/02/2017 31/12/2020 9 720 000 15,41% 1 497 852 Gitega Kibumbu-Gitega 8 (Mweya) Road Development 5900155011453 01/02/2017 23/05/2017 31/12/2020 4 080 000 16,01% 653 208 and Paving Project - Phase II RN-18: Nyakararo-Mwaro– 9 Gitega Road Development and P-BI-DB0-018 24/09/2014 19/11/2014 30/06/2019 19 420 000 93,98% 18 250 916 Paving Project - Phase I Rural Infrastructure Support 10 Project in Bugesera natural P-BI-K00-013 15/12/2017 25/01/2018 30/06/2023 12 000 000 2,80% 336 000 region Project to Support the Provision of Energy for cooking and to 11 P-BI-K00-014 02/05/2018 10/08/2018 30/06/2019 1 000 000 51,07% 510 700 Restoration of the Environment in four Refugee Camps Jiji and Mulembwe Hydropower 12 P-BI-FA0-100 23/06/2014 31/07/2014 31/12/2019 14 340 000 12,06% 1 729 404 Project NELSAP Interconnection Project – Power transmission 13 line between Bujumbura P-Z1-FA0-034 27/11/2008 16/03/2009 31/12/2025 15 150 000 42,47% 6 434 205 (Burundi) and Kamanyola (DRC) RUZIZI Hydropower Project III 14 P-Z1-FA0-076 16/12/2015 07/03/2016 30/12/2021 19 290 000 0,00% 0 (BURUNDI) RUSUMO Regional 2100155026516 27/11/2013 18/02/2014 31/08/2021 16 700 000 10,37% 1 731 790 15 Hydropower Project – BURUNDI 5580155000001 21/11/2013 23/09/2014 31/08/2021 10 341 975 7,29% 753 930 Burundi-Rwanda Power Grid 2100155038718 14/12/2018 21/02/2019 30/06/2025 2 510 000 0,00% 0 16 Interconnection Project for NELSAP 5900155014754 14/12/2018 21/02/2019 30/06/2025 3 170 000 0,00% 0 Total (16 operations) 247 498 975 37,34%

Annex III: Map of Project Area (nationwide)

This map was drawn by the staff of the African Development Bank Group exclusively for use by readers of the report to which it is attached. The names used and the boundaries shown do not imply on the part of the Bank Group and its members any judgement concerning the legal status of any territory or any endorsement or acceptance of such boundaries.

III

Annex IV: Fragility Context

The following are the key points concerning fragility: (i) the social repercussions of the 2015 crisis; (ii) the situation of refugees in Burundi and Burundians in neighbouring countries; (iii) the ongoing discussions in Burundi on the peace process, given the potential risks of post-election conflicts related to the 2020 elections; (iv) the country faces significant poverty with a poverty rate of nearly 66%; (v) weakness of the judicial system (vi) NGOs have left the country, but some are still present and very active as well as They are carrying out notable activities for the benefit of young people, women and rural communities; (vii) the labour-market vulnerability of young people, especially in urban areas. The unemployment rate is higher in the four urban centres and particularly in Bujumbura (26%, ISTEEBU, 2014). According to the same data sources, the unemployment rate is 23% among economically active higher education graduates living in Bujumbura. For female higher education graduates living in the same city, the unemployment rate is 30%, compared with 18% for their male counterparts. The informal sector accounts for the lion’s share of employment (93.5% of jobs, OBEM). Civil society initiatives, such the creation of business incubators for young entrepreneurs, are being undertaken in an effort to contain rural exodus by supporting agribusiness. These initiatives are an asset for the Centre, which will indirectly benefit from the nutrition improvement campaigns and leverage the expertise of future graduates of the Centre, especially as young entrepreneurs in this sector face major difficulties at the certification stage.

The government has focused on tackling youth unemployment through the establishment of dedicated agencies. In the past, the Bank offered institutional support to these agencies. Their capacities have clearly improved and they continue to be supported logistically. However, these efforts do match up with the challenges facing these institutions.

Recommendations

- Strengthening of political will for further dialogue;

- Enhancement of the efficiency of public administration actors involved in the project (University, BBN, and job-search support agencies;

- Facilitation of the certification process to reduce the informal sector’s share in the economy;

- Support for agricultural produce processing and preservation techniques;

- Promotion of nutrition with the help of the newly trained scientific experts;

- Creation of employment opportunities for young people and capacity building for the professionals engaged in agribusiness, given that the professional integration of young people is a key contributory factor to stability and peace;

- Reduction of gender inequalities with specific initiatives;

- Capacity building for the project team and the teachers of the Centre;

- Search for financial opportunities for the implementation of ancillary activities related to the promotion of proper nutrition among vulnerable groups or their intermediaries.

AFRICAN DEVELOPMENT FUND

BOARD OF DIRECTORS

Resolution N° F/BI/2019/46

Adopted by the Board of Directors, on a lapse-of-time basis, on 17th July 2019

Grant to the Republic of Burundi to finance part of the costs of the Project to Support the East African Nutritional Sciences Institute (PA-EANSI)

THE BOARD OF DIRECTORS,

HAVING REGARD to: (i) Articles 1, 2, 11, 12, 14, 15, 16, 26 and 30 of the Agreement Establishing the African Development Fund (the “Fund” or “ADF”); (ii) the Report on the Fourteenth General Replenishment of the Resources of the Fund (ADF-14); (iii) the applicable ADF-14 Country Resource Allocation; and (iv) the appraisal report contained in document ADF/BD/WP/2019/111/Approval (the “Appraisal Report”);

NOTING the availability of sufficient resources to enable the Fund to commit the amount of the Grant;

DECIDES as follows:

1. To award to the Republic of Burundi (the “Recipient”), from the resources of the Fund, a grant of an amount not exceeding the equivalent of Six Million Units of Account (UA 6,000,000) (the “Grant”) to finance part of the costs of the Project to Support the East African Nutritional Sciences Institute (PA-EANSI);

2. To authorize the President to conclude a protocol of agreement between the Fund and the Recipient (the “Protocol of Agreement”) on the terms and conditions specified in the General Conditions Applicable to Protocols of Agreement for Grants of the African Development Fund and the Appraisal Report;

3. The President may cancel the Grant if the Protocol of Agreement is not signed within ninety (90) days from the date of approval of the Grant by this Board; and

4. This Resolution shall become effective on the date above-mentioned.