Support for Capacity Development of the African Union Commission and other African Union ...

118 Pages·2014·2 MB·English

by  World Bank Group

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Report No: 81618-AFR
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PP PROPOSED REGIONAL IDA GRANT
IN THE AMOUNT OF SDR16.15 MILLION
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PP AND OTHER AFRICAN UNION ORGANS PROJECT

April 2, 2014
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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 .......................................................................... 65
Figure 11: Comparison of Median Basic Salary per Grade (AU, ECOWAS, and UN) ................ 73
Figure 12: Comparison of AU and 75th percentiles of African Labour Markets .......................... 74
Figure 13: Current ICT Infrastructure at AUC .............................................................................. 82
Figure 14: Assessment of the Current State of AUC’s ICT Infrastructure .................................... 83
Figure 15: ECOSSOC’s Organizational Setting for Civil Society Engagement ........................... 87
Figure 16: Diaspora Remittance Growth ....................................................................................... 97
Figure 17: Real GDP Growth in Sub-Saharan Africa, by country groups ................................... 103

List of Tables
Table 1: Development Partner Assistance to AUC for Peace and Security and Other Programs .. 7
Table 2: Summary Project Costs................................................................................................... 17
Table 3: AUC Budget ................................................................................................................... 68
Table 4: AUC’s Budget Allocation for Transformational Projects .............................................. 69
Table 5: AUC Human Resource Profile ....................................................................................... 71
Table 6: Needs of AUC Financial Systems Upgrade .................................................................... 78
Table 7: Rights and Economic Development in Africa Some Key Instruments and Institutions . 92
Table 8: Continental Targets Discussed in the Development of AU Agenda 2063 ................... 100
Table 9: Organs of the Africa Union .......................................................................................... 100
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PAD DATA SHEET
Africa
Support for Capacity Development of the African Union Commission and other African Union
Organs (P126848)
PROJECT APPRAISAL DOCUMENT
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AFTP2
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Basic Information
Project ID EA Category Team Leader
P126848 C - Not Required Waleed Haider Malik
Lending Instrument Fragile and/or Capacity Constraints [ ]
Investment Project Finance (IPF) Financial Intermediaries [ ]
Series of Projects [ ]
Project Implementation Start Date Project Implementation End Date
01-Jul-2014 31-Dec-2018
Expected Effectiveness Date Expected Closing Date
30-Jun-2014 31-Dec-2018
Joint IFC
No
Sector Manager Sector Director Country Director Regional Vice President
Pablo Fajnzylber Marcelo Giugale Colin Bruce Makhtar Diop
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Borrower: African Union Commission
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Project Financing Data(in USD Million)
[ ] Loan [ ] Grant [ ] Guarantee
[ ] Credit [ X ] IDA Grant [ ] Other
Total Project Cost: 25.00 Total Bank Financing: 25.00
Financing Gap: 0.00
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Financing Source Amount
BORROWER/RECIPIENT 0.00
IDA Grant 25.00
Total 25.00
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Expected Disbursements (in USD Million)
Fiscal Year 2014 2015 2016 2017 2018 2019
Annual 1.00 2.00 6.00 8.00 5.00 3.00
Cumulative 1.00 3.00 9.00 17.00 22.00 25.00
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Proposed Development Objective(s)
Strengthen African Union Commission’s capacity to facilitate economic development results and
transformation through enhanced institutional efficiency. This will be achieved by enhancing the AUC's
internal human resources and management systems, and supporting result-oriented external partnerships
and collective actions designed to enhance the implementation of regional economic development
initiatives in priority areas (e.g. regional trade, energy, infrastructure, governance, natural resource
management) for the benefit of African Union member states, the Regional Economic Communities and
African citizens.
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Components
Component Name Cost (USD Millions)
i. Strengthening Institutional Capacity 15.00
ii. Facilitating Economic Development Results with 10.00
Stakeholders
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Institutional Data
Sector Board
Public Sector Governance
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Sectors / Climate Change
Sector (Maximum 5 and total % must equal 100)
Major Sector Sector % Adaptation Mitigation
Co-benefits % Co-benefits %
Public Administration, Law, and Central government 50
Justice administration
Public Administration, Law, and General public 50
Justice administration sector
Total 100
I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information
applicable to this project.
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Themes
Theme (Maximum 5 and total % must equal 100)
Major theme Theme %
Public sector governance Managing for development results 50
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Public sector governance Other public sector governance 30
Trade and integration Regional integration 20
Total 100
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Compliance
Policy
Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ]
respects?
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Does the project require any waivers of Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]
Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ]
.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X
.
Legal Covenants
Name Recurrent Due Date Frequency
Operations Manual 01-July-2014
Description of Covenant
The AUC shall adopt (and thereafter implement the Project in accordance with) an operations manual,
acceptable to the Association, which shall include fiduciary policies and procedures to be followed by
the AUC in conducting its operations, including the Project, such manual to cover, inter alia, financial
management, procurement, disbursement and monitoring and evaluation arrangements for the Project.
Legal Covenants
Name Recurrent Due Date Frequency
Annual Work Plan 31-March-2015
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Description of Covenant
The AUC shall prepare under terms of reference acceptable to the Association, and furnish to the
Association, for the Association’s review and agreement, an annual work plan of activities (including
training and workshops) proposed for inclusion in the Project during the following calendar year,
together with a budget and financing plan for such activities and a timetable for their implementation.
Legal Covenants
Name Recurrent Due Date Frequency
Training 01-July-2014
Description of Covenant
The AUC shall ensure that in preparing any training or workshops proposed for inclusion in the Project
under an Agreed Annual Work Plan, it shall identify in the work plan: (a) the objective and content of,
and justification for, the training or workshop envisaged; (b) the selection method of institutions or
individuals conducting such training or workshop, and said institutions if already known; (c) the
expected duration and an estimate of the cost of said training or workshops; and (d) the personnel
selected to attend the training or the workshop.
Legal Covenants
Name Recurrent Due Date Frequency
Audit 01-Oct-2014
Description of Covenant
In order to ensure the timely carrying out of the audits, the AUC shall engage auditors for the purpose
not later than 3 months after the Effective Date, with terms of reference and qualifications and
experience acceptable to the Association.
Legal Covenants
Name Recurrent Due Date Frequency
Project Accountant 01-Oct-2014
Description of Covenant
The African Union Commission shall, not later than three months after the Effective Date, recruit a
Project accountant with qualifications, experience and terms of reference satisfactory to the Association.
.
Team Composition
Bank Staff
Name Title Specialization Unit
Boutheina Guermazi Lead Operations Officer Lead Operations Officer AFCRI
Zoe Kolovou Lead Counsel Lead Counsel LEGAM
Sahr John Kpundeh Advisor Advisor AFTOS
Kofi Anani Sr. Operations Officer Co-Team Lead AFCRI
Aileen Marshall Sr. Partnership Specialist Sr. Partnership Specialist AFCRI
Christiaan Nieuwoudt Finance Officer Finance Officer CTRLN
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