AFRICAN DEVELOPMENT FUND MULTINATIONAL PROJECT : PAN AFRICAN UNIVERSITY PROJECT __________________________________________________ PROJECT APPRAISAL REPORT Sector Director: Mrs. A. SOUCAT, OSHD Regional Directors: MM. G. NEGATU (EARC), J. LITSE (ORWA), Mrs. M. KANGA (ORCE) Appraisal Team Sector Manager: Mr. B. SAVADOGO, OSHD.2 Team Leader: Mr. C. M. GUEDEGBE, OSHD.2 OSHD DEPARTMENT July 2013 TABLE OF CONTENTS I – STRATEGIC THRUST & RATIONALE ....................................................................... 1 1.1 PROJECT LINKAGES WITH RELEVANT STRATEGY AND OBJECTIVES ................................... 1 1.2 RATIONALE FOR BANK’S INVOLVEMENT .......................................................................... 2 1.3 DONOR COORDINATION .................................................................................................... 4 II – 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 ..................................................................... 9 2.6 PARTICIPATORY PROCESS FOR PROJECT IDENTIFICATION, DESIGN AND IMPLEMENTATION .............................................................................................................................................. 10 2.7 BANK GROUP EXPERIENCE, LESSONS REFLECTED IN PROJECT ......................................... 10 2.8 KEY PERFORMANCE INDICATORS .................................................................................... 11 III – PROJECT FEASIBILITY ........................................................................................... 11 3.1 ECONOMIC AND FINANCIAL PERFORMANCE .................................................................... 11 3.2 ENVIRONMENTAL AND SOCIAL IMPACTS ........................................................................ 12 IV – IMPLEMENTATION ................................................................................................... 14 4.1 IMPLEMENTATION ARRANGEMENTS................................................................................ 14 4.2 MONITORING .................................................................................................................. 16 4.3 GOVERNANCE................................................................................................................. 17 4.4 SUSTAINABILITY ............................................................................................................ 17 4.5 RISK MANAGEMENT........................................................................................................ 19 4.6 KNOWLEDGE BUILDING .................................................................................................. 19 V – FINANCING INSTRUMENTS AND CONDITIONS ................................................. 20 5.1 FINANCING INSTRUMENT AND CONDITIONS .................................................................... 20 5.2 CONDITIONS ASSOCIATED WITH BANK’S INTERVENTION ................................................ 20 5.3 COMPLIANCE WITH BANK POLICIES ............................................................................... 20 VI – RECOMMENDATION ................................................................................................ 20 APPENDICES APPENDIX I : DETAILED TEST FOR REGIONAL PUBLIC GOOD ELIGIBILITY APPENDIX II (A) : IMPLEMENTATION STRUCTURE FOR THE PROJECT APPENDIX II (B): EXPENDITURE CATEGORIES BY BENEFICIARY INSTITUTION APPENDIX III: COMPARATIVE SOCIO-ECONOMIC INDICATORS OF HOST COUNTRIES APPENDIX IV: MAP OF THE REGION INDICATING PROJECT SITES APPENDIX V : PROCUREMENT ARRANGEMENTS TABLES Page 1.1 Contribution of development partners to initial phase 4 2.1 List of programs by PAU thematic institute 5 2.2 Project components 5 2.3 Alternatives considered and reasons for rejection 7 2.4.1 (a) to 2.4.5: Project costs 8-9 4.1 Financial management risk assessment 16 4.2 Procurement risk assessment 16 4.3 Monitoring schedule 17 4.4 Risks and mitigation 19 FIGURES 1. Percentage of students enrolled in S&T fields (2010) 2 2. Employment of active population 25-34 with higher education level 2 3. Relation between GER and Gender Parity in Tertiary Education 12 4. Projected evolution of recurrent costs and revenue 18 Currency Equivalents As of April 2013 1 Unit of Account (UA) = 1.5 US$ 1 UA = 235.1 NGN 1 UA = 130.6 KES 1 UA = 767.3 XAF Fiscal Year [Fiscal year 1 July – 30 June] Weights and Measures 1 metric ton = 2204 pounds (lbs.) 1 kilogram (kg) = 2.200 lbs. 1 meter (m) = 3.28 feet (ft) 1 millimeter (mm) = 0.03937 inch (“) 1 kilometer (km) = 0.62 mile 1 hectare (ha) = 2.471 acres i Acronyms and Abbreviations AAU Association of African Universities AERC African Economic Research Council AU African Union AUC African Union Commission AUST African University of Science and Technology AVU African Virtual University COMEDAF Conference of Ministers of Education of the AU CSP Country Strategy Paper ECOWAS Economic Community of West African States EU European Union GER Gross Enrolment Rate HEST Higher Education, Science and Technology ICT Information and Communication Technologies JICA Japan International Development Agency KES Kenyan Shilling LTP Lead Thematic Partner MIS Management Information System MTS Medium Term Strategy NEPAD New Partnership for Africa’s Development NGN Nigerian Naira OECD Organization of Economic Cooperation and Development PAU Pan African University PAUGHSS PAU Institute of Governance, Humanities and Social Sciences PAULESI PAU Institute of Life & Earth Sciences PAUSTI PAU Institute of Science, Technology and Innovation PBA Performance-Based Allocation PIDA Programme for Infrastructure Development in Africa REC Regional Economic Community RISP Regional Integration Strategy Paper RPG Regional Public Good SIDA Swedish International Development Agency SSA Sub Saharan Africa STEM Science, Technology, Engineering and Mathematics STI Science, Technology and Innovation UNECA United Nations Economic Commission for Africa WAEMU West African Economic and Monetary Union WDR World Development Report (World Bank) XAF CFA franc (Central Africa) ii Grant Information Client Information GRANTEE: African Union Commission (AUC) EXECUTING AGENCY: Directorate of Human Resources, Sciences and Technology (HRST), African Union Commission (AUC); PAU Institute of Basic Sciences, Technology and Innovation (PAUSTI) at Jomo Kenyatta University of Agriculture and Technology (JKUAT); PAU Institute of Life and Earth Sciences (PAULESI) at the University of Ibadan (UI); PAU Institute of Governance, Humanities and Social Sciences (PAUGHSS) at The University of Yaoundé II (UYII) Financing Plan (2013-2018) Source Amount (UA million) Instrument ADF 30.00 Grant Governments 17.93 AUC 44.26 Other partners (LTPs) 10.64 Total cost 102.83 ADB’s key financing information Grant currency Unit of Account FIRR, NPV (base case) NA EIRR (base case) NA Timeframe - Main Milestones (expected) Concept Note approval March 2012 Project Reappraisal March 2013 Project approval July 2013 Effectiveness December 2013 Completion December 31, 2018 Last Disbursement June 30, 2019 iii Project Summary 1. Project overview. By supporting the Pan African University (PAU), the project will advance Africa’s goal of enhancing its competitiveness and growth through the creation of high quality higher education and research capabilities. The PAU is a regional university offering only postgraduate (Master and doctoral) programmes. It aims at establishing an academic network of already existing post-graduate and research institutions. It will serve the entire continent in five development areas1 identified by the Heads of States and the Conference of African Ministers of Education (COMEDAF). The total cost of the 5- year PAU support project is estimated at UA 102.83 million of which the ADF will contribute UA 30.00 million as a grant. The balance of UA 72.83 million will be mobilized by the African Union Commission (AUC), the countries hosting the PAU institutes and the Lead Thematic Partners (LTPs). 2. The implementation structure of the PAU is based on the selection of existing universities, on a competitive basis, to host the regional PAU Institutes and Centers. The first three PAU lead thematic institutes (out of five) are established and are hosted by Jomo Kenyatta University of Agriculture and Technology (JKUAT) in Kenya (for Sciences, Engineering, and Technology), the University of Yaoundé II in Cameroon (for Governance, Humanities and Social Sciences), and the University of Ibadan in Nigeria (for Life and Earth Sciences). They will serve all African countries. Algeria has been recently chosen for North Africa while selection for the host country for Southern Africa is in progress. Details of the structure of the PAU are provided in the approved Statute (Technical Annex C.5). 3. Needs Assessment. The project will help provide Africa with the skills needed to add value to its natural resources and enhance its competitiveness and sustainable growth. Through the post graduate programs in Science, Technology,