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Science and Technology Education Project (SSTEP) in Zambia

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Science and Technology Education Project (SSTEP) in Zambia AFRICAN DEVELOPMENT FUND SUPPORT TO SCIENCE AND TECHNOLOGY EDUCATION PROJECT (SSTEP) COUNTRY: REPUBLIC OF ZAMBIA PROJECT APPRAISAL REPORT OSHD DEPARTMENT October 2013 TABLE OF CONTENTS Page TABLE OF CONTENTS, CURRENCY EQUIVALENTS, WEIGHTS AND MEASUREMENTS, ACRONYMS AND ABBREVIATIONS, LOAN INFORMATION, PROJECT SUMMARY, RESULTS-BASED LOGICAL FRAMEWORK, PROJECT TIMEFRAME….………...……………………... ………………… i – ix 1– STRATEGIC THRUST & RATIONALE ............................................................................1 1.1 Project linkages with country strategy and objectives ...............................................1 1.2 Rationale for Bank’s involvement .............................................................................2 1.3 Donor coordination ....................................................................................................3 2– PROJECT DESCRIPTION ...................................................................................................4 2.1 Project components ....................................................................................................4 2.2 Technical solution retained and other alternatives explored .....................................6 2.3 Project type ................................................................................................................7 2.4 Project cost and financing arrangements ...................................................................7 2.5 Project’s target area and population ..........................................................................8 2.6 Participatory process for project identification, design and implementation ............9 2.7 Bank Group experience, lessons reflected in project design ...................................10 2.8 Key performance indicators .....................................................................................10 3– PROJECT FEASIBILITY ...................................................................................................10 3.1 Environmental and Social impacts ..........................................................................10 3.2 Economic impact .....................................................................................................12 4– IMPLEMENTATION .........................................................................................................13 4.1 Implementation arrangements .................................................................................13 4.2 Procurement Arrangements .....................................................................................14 4.3 Financial Management and audit Arrangements .....................................................14 4.4 Funds flow and Disbursement Arrangements………………………………………15 4.5 Monitoring ...............................................................................................................15 4.6 Governance ..............................................................................................................16 4.7 Sustainability ...........................................................................................................17 4.8 Risk Management ....................................................................................................17 4.9 Knowledge Management .........................................................................................17 5– LEGAL INSTRUMENTS AND AUTHORITY .................................................................18 5.1 Legal Instrument .....................................................................................................18 5.2 Conditions Associated with Bank’s Intervention ....................................................18 5.3 Compliance with the Bank Group's Policies .................................................19 6 – RECOMMENDATION .....................................................................................................19 List of Tables Table 1 Demand for Skills 2012 to 2016 Excluding Increase in Demand from New Mines Table 2 Project components Table 3 Project alternatives considered and reasons for rejection Table 4 Summary project Cost by Component Table 5 Sources of Financing, Amount (UA million) and Percentage Contribution (%) Table 6 Project Cost-Categories of Expenditure (Summary) Table 7 Categories of Expenditure (Summary) Table 8 Expenditure Schedule by component Table 9 Monitoring schedule Table 10 Risks and risk mitigation measures List of Appendices Appendix I Zambia – Comparative Socio-Economic Indicators Appendix II ADB’s Active Portfolio in Zambia (January 2013) Appendix III Projects Financed by the Bank Group and Other Development Partners Appendix IV Summary Procurement Arrangements Appendix V Implementation Arrangements Appendix VI Map of the Republic of Zambia showing Projects Sites Currency Equivalents (August 2013) 1 UA = 1.51326 USD 1 UA = 1.1538 Euro 1 UA = 8.29055 ZMW (Rebased) 1 USD = 5,295.07 ZMK 1 USD = 5.29507 ZMW (Rebased) [Note: The Zambian currency (ZMK) was rebased on 1st January 2013 to the new alphabetic ISO Code ZMW. The ZMK has ceased on 30th June 2013. Consequently, the rebased currency (ZMW) is used in the cost tables] Fiscal Year 1st January to 31st December Weights and Measures 1 metric tonne (t) = 2,204 pounds (lbs) 1 metre (m) = 3.28 feet (ft) 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres ii Acronyms and Abbreviations ADF African Development Fund CSO Civil Society Organizations CP Cooperating Partners CSP Country Strategy Paper DP Donor Partner ESSP Education Sector Strategic Plan GBS General Budget Support GRZ Government of the Republic of Zambia HE Higher Education HEST Higher Education, Science and Technology IE Impact Evaluation JASZ Joint Assistance Strategy for Zambia LMIMS Labor Market Information Management System MEPMU Ministry of Education Project Management Unit MESVTEE Ministry of Education Science, Vocational Training and Early Education MoF Ministry of Finance MYS Ministry of Youths and Sports NIF National Implementation Framework RBCSP Results Based Country Strategy Paper RRSNDP Revised Sixth National Development Plan SSTEP Support to Science and Technology Education Project STE Science and Technology Education TBD To be determined TEVET Technical, Education and Vocational, Entrepreneurship Training TEVETA Technical, Education and Vocational, Entrepreneurship Training Authority TTI Trades Training Institutions TVET Technical, Vocational Education and Training UA Unit of Account WBET Work-based and Entrepreneurship Training WBTET Work-Based Technical and Entrepreneurship Training YRC Youth Resource Center ZCCM-IH Zambia Consolidated Copper Mines- Investment Holding ZEMA Zambia Environment Management Agency iii Loan Information Client’s information BORROWER: Republic of Zambia PROJECT NAME: Support to Science and Technology Education Project (SSTEP) EXECUTING AGENCY: Ministry of Education, Science, Vocational Training and Early Education Financing plan Source Amount (UA) Instrument ADF 22.22 million Loan PRIVATE SECTOR 0.45 million GRZ 3.29 Million Counterpart Contribution TOTAL COST 25.96 Million ADB’s key financing information Loan currency USD Commitment fee 0.50% (50 basis pts.) Other fees 0.75% (service charge) Tenor 50 years Grace period 10 years Timeframe - Main Milestones (expected) Concept Note approval July 2013 Project approval November 2013 Signing January 2014 Effectiveness March 2014 Completion December 2018 Last Disbursement December 2019 iv PROJECT SUMMARY Project Overview: The Support to Science and Technology Education (SSTEP) Project aims to help improve the quality and relevance of skills development levels in Zambia for job creation and youth employability. SSTEP will be implemented for a period of five years and the total project cost is UA25.96 million. It involves the collaboration of institutions of learning and industries especially mining industries to foster linkage between training and Zambia Consolidated Copper Mines- Investment Holding (ZCCM-IH) in Skills Training at the various benefiting public institutions. The strategic outcomes of the project include: (a) improved access to Science and Technology in Technical, Entrepreneurial, Vocational Education and Training (TEVET) and Higher Education (HE); (b) improved quality and relevance of teaching and learning in target institutions; (c) improved quality and relevance of Science and Technology and entrepreneurship for an estimated 4,000 youths. The project will also conduct an impact evaluation that will provide robust evidence as to the type of relevant and quality interventions that are successful in increasing participation of industry and improving youth employment. Needs assessment: In line with its strategy of economic diversification, the Government of the Republic of Zambia (GRZ) has launched a nationwide programme to create one million jobs within five years (2011-2015). This will be done through enhancing skills development and entrepreneurship training for the following growth areas in 2014: Agriculture (300,000), Mining (74 000), Tourism (90,000), and Energy (90,000) in order to contribute to its national economic growth for poverty reduction. The GRZ has requested the Bank Group’s financial support for the implementation of SSTEP. The skills and entrepreneurship training is an important source of economic growth and job creation to foster poverty reduction. Bank’s Added Value: With the proposed project, the Bank Group is addressing a pressing need to help build the
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