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World Bank Document Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 81618-AFR INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED REGIONAL IDA GRANT IN THE AMOUNT OF SDR16.15 MILLION (US$25 MILLION EQUIVALENT) TO THE AFRICAN UNION COMMISSION FOR THE SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION Public Disclosure Authorized AND OTHER AFRICAN UNION ORGANS PROJECT April 2, 2014 Poverty Reduction and Economic Management 2 (AFTP2) Country Department AFCRI Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective: February 28, 2014) US$1 = SDR 0.646 FISCAL YEAR (July 1 – June 30) ABBREVIATIONS AND ACRONYMS AfDB African Development Bank AFR Africa Region APEI Accelerated Program for Economic Integration APSA African Peace and Security Architecture AU Africa Union AUC African Union Commission AusAID Australian Agency for International Development AWP Annual Work Plans BD Bidding Document BEA Board of External Auditors CA Constitutive Act CAADP Comprehensive Africa Agricultural Development Program CEMAC The Central African Economic and Monetary Community CEN-SAD The Community of Sahel-Saharan States CFTA Continental Free Trade Agreement CIDO Citizens and Diaspora Directorate CILSS The Permanent Interstate Committee for Drought Control in the Sahel COMESA Common Market for Eastern and Southern Africa CPIA Country Policy and Institutional Assessment CSO Civil Society Organizations CSSDCA Conference on Security, Stability, Development and Co-operation in Africa DFID Department for International Development EAC East African Community ECCAS The Economic Community of Central African States ECGLC The Economic Community of the Great Lakes Countries ECOSOCC Economic, Social and Cultural Council of the African Union ECOWAS Economic Community of West African States EU European Union FM Financial Management FRR Financial Rules and Regulations GDP Gross Domestic Product GIZ Deutsche Gesellschaft fuer Internationale Zusammenarbeit HQ Head Quarter HRD Human Resource Development IBRD International Bank of Reconstruction and Development ICT Information and Communications Technologies IDA International Development Association IFC International Finance Corporation IFR Interim Financial Report IGAD Intergovernmental Authority on Development IOC The Indian Ocean Commission IPSAS International Public Sector Accounting Standards M & E Monitoring and Evaluation MDGs Millennium Development Goals MoU Memorandum of Understanding NCB National Competitive Bidding OAS Organization of American States OAU Organisation of African Unity ORAF Operational Risk Assessment Framework PDO Project Development Objective PIDA Program for Infrastructure Development in Africa PPPs Public Private Partnerships PRC Permanent Representative Committee PTU Procurement and Travel Unit QCBS Quality and Cost Based Selection REC Regional Economic Community RFQ Request for Quote SADC South African Development Community SBCQ Selection Based on Consultant Qualification SBD Standard Bidding Document SC Steering Committee SIDA Swedish International Development Cooperation Agency SOE Statement of Expenditure SRFP Standard Request for Proposal SSA Sub-Saharan Africa STC Specialized Technical Committees UK United Kingdom UN United Nations UNECA United Nations Economic Commission for Africa US United States USAID U.S. Agency for International Development USD United States Dollar WBG World Bank Group Vice President: Makhtar Diop Regional Director: Colin Bruce Sector Director: Marcelo Giugale Sector Manager: Pablo Fajnzylber Task Team Leader: Waleed Haider Malik Co-Task Team Leader: Kofi Anani SUPPORT FOR CAPACITY DEVELOPMENT OF THE AFRICAN UNION COMMISSION AND OTHER AFRICAN UNION ORGANS Table of Contents I. STRATEGIC CONTEXT ........................................................................................................ 1 A. Regional Context ................................................................................................................ 1 B. AUC’s Profile, Strategic Plan 2014-2017 and Institutional Challenges ............................. 6 C. Rationale for Bank Involvement ....................................................................................... 10 D. Higher Level Objectives to Which the Project Contributes .............................................. 12 II. PROJECT DEVELOPMENT OBJECTIVES ............................................................................. 12 A. Project Development Objective (PDO) ............................................................................ 12 B. Project Beneficiaries ......................................................................................................... 13 C. PDO Level Results Indicators ........................................................................................... 13 D. Project Components .......................................................................................................... 13 E. Project Financing .............................................................................................................. 17 F. Lessons Learned and Reflected in the Project Design ...................................................... 18 G. Alternatives Considered and Reasons for Rejection ......................................................... 19 III. IMPLEMENTATION ............................................................................................................ 19 A. Institutional and Implementation Arrangements .............................................................. 19 B. Results Monitoring and Evaluation .................................................................................. 20 C. Sustainability..................................................................................................................... 20 IV. KEY RISKS AND MITIGATION MEASURES ....................................................................... 21 V. APPRAISAL SUMMARY ...................................................................................................... 22 A. Economic and Financial Analyses .................................................................................... 22 B. Technical ........................................................................................................................... 23 C. Financial management ...................................................................................................... 23 D. Procurement ...................................................................................................................... 24 E. Social................................................................................................................................. 24 F. Environment (including safeguards) ................................................................................. 25 Annex 1: Results Framework and Monitoring ............................................................................. 26 Annex 2: Project Description ....................................................................................................... 30 Annex 3: Implementation, Financial Management, and Procurement Arrangements ................ 36 Annex 4: Operational Risk Assessment Framework (ORAF) ..................................................... 52 Annex 5: Implementation Support Plan ....................................................................................... 55 Annex 6: Team Composition ....................................................................................................... 56 Annex 7: Institutional Profile, Challenges and Capacity Needs of AUC and other AU Organs . 60 Annex 8: Economic and Regional Integration Challenges in Africa ......................................... 103 Annex 9: Map of Africa ............................................................................................................. 107 List of Figures Figure 1: Real GDP Growth in Sub-Saharan Africa and Developing Countries ........................... 1 Figure 2: Governance and Public Sector Management in Africa .................................................. 2 Figure 3: AUC’s Approach to Facilitate Sustained Collective Action in Pursuit of Africa’s Economic Transformation .............................................................................................. 4 Figure 4: Organs of the African Union .......................................................................................... 6 Figure 5: Project Components and AUC’s Approach for Facilitating (coordinating, catalyzing) Results .......................................................................................................................... 16 Figure 6: Hierarchy of Thoughts on Support for Capacity .......................................................... 30 Figure 7: Learning by Doing Approach ....................................................................................... 35 Figure 8: Structure of the AUC .................................................................................................... 62 Figure 9: Organizational Challenge ............................................................................................. 64 Figure 10: Map of AU Institutional Architecture .........................................................................
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