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AFRICAN DEVELOPMENT FUND PROJECT: EDUCATION FOR SUSTAINABLE DEVELOPMENT IN MINERAL RESOURCES MANAGEMENT PROJECT AT THE UNIVERSITY OF ZAMBIA COUNTRY: ZAMBIA PROJECT APPRAISAL REPORT OSHD DEPARTMENT November 2016 Public Disclosure Authorized Public Disclosure Authorized

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Page 1: COUNTRY: ZAMBIA PROJECT APPRAISAL REPORT · COUNTRY: ZAMBIA PROJECT APPRAISAL REPORT ... intake will increase by 30 students a year in years 2 ... the Project Coordinator will be

AFRICAN DEVELOPMENT FUND

PROJECT: EDUCATION FOR SUSTAINABLE DEVELOPMENT IN

MINERAL RESOURCES MANAGEMENT PROJECT AT THE

UNIVERSITY OF ZAMBIA

COUNTRY: ZAMBIA

PROJECT APPRAISAL REPORT

OSHD DEPARTMENT

November 2016

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TABLE OF CONTENTS

CURRENCY EQUIVALENTS, FISCAL YEAR, WEIGHTS AND MEASURES, ACRONYMS AND ABBREVIATION, LOAN INFORMATION,

CLIENT’S INFORMATION, PROJECT SUMMARY, RESULT BASED LOG FRAME, PROJECT TIME…………..………………………… I- IX

I. STRATEGIC THRUST AND RATIONALE…………………………………………………………………………………................................. …1

1.1 PROJECT LINKAGES WITH RELEVANT STRATEGY AND OBJECTIVES ...................................................................... 1 1.2 RATIONALE FOR BANK’S INVOLVEMENT ............................................................................................................. 3 1.3 DONOR COORDINATION ....................................................................................................................................... 3

II. PROJECT DESCRIPTION………………………………………………………………………………………………………………….............…4

2.1 PROJECT COMPONENTS ........................................................................................................................................ 4 2.2 TECHNICAL SOLUTION RETAINED AND OTHER ALTERNATIVES EXPLORED ........................................................... 8 2.3 PROJECT TYPE ..................................................................................................................................................... 9 2.4 PROJECT COST AND FINANCING ARRANGEMENTS ................................................................................................. 9

2.5 PROJECT'S TARGET AREA AND POPULATION .......................................................................................... 11

2.6 PARTICIPATORY PROCESS FOR PROJECT IDENTIFICATION, DESIGN AND IMPLEMENTATION ................................ 12 2.7 BANK GROUP EXPERIENCE, AND LESSONS REFLECTED IN PROJECT ................................................................... 12 2.8 KEY PERFORMANCE INDICATORS………………………………………………………………………………13

III. PROJECT FEASIBILITY………………………………………………………………………………………………………………...…………13

3.1 ECONOMIC AND FINANCIAL PERFORMANCE ...................................................................................................... 13 3.2 ENVIRONMENTAL AND SOCIAL IMPACTS ........................................................................................................... 13

IV. IMPLEMENTATION…………………………………………………………………………………………………..……………………………15

4.1 EXECUTING AGENCY.......................................................................................................................................... 15 4.2 FINANCIAL MANAGEMENT (FM) AND DISBURSEMENT ARRANGEMENTS .......................................................... 15 4.3 PROCUREMENT ARRANGEMENTS ....................................................................................................................... 16 4.4 MONITORING ..................................................................................................................................................... 17 4.5 GOVERNANCE .................................................................................................................................................... 17 4.6 SUSTAINABILITY ................................................................................................................................................ 17 4.7 RISK MANAGEMENT ........................................................................................................................................... 18 4.8 KNOWLEDGE BUILDING ..................................................................................................................................... 18

V. FINANCING INSTRUMENTS AND CONDITIONS………………………………………………………………………………………………19

5.1 FINANCING INSTRUMENT AND CONDITIONS ....................................................................................................... 19 5.2 CONDITIONS ASSOCIATED WITH BANK’S INTERVENTION ................................................................................... 19 5.3 COMPLIANCE WITH BANK POLICIES ................................................................................................................... 19

VI. RECOMMENDATION………………………………………………………………………………………………………………………………20

APPENDIX I. ...................................................................................................................................................................... I APPENDIX II………………………………...…………………………………………………………………………. II APPENDIX III...…………………………………………………………………………………………………………III

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Currency Equivalents

As of June 2016

1 Unit of Account = 1, 3721 US$

Fiscal Year

1st 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

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Acronyms and Abbreviations

ACE African Centers of Excellence Project

ADB African Development Bank

ADF African Development Fund

AUC African Union Commission

AUST African University of Science and Technology

CBU

CPG

CPI

CPPR

CSP

Copper belt University

Cooperating Partners Group

Corruption Perception Index

Country Portfolio Performance Review

Country Strategy Paper

ESDA

FM

GDP

Education for Sustainable Development in Africa

Financial Management

Gross Domestic Product

HEST Higher Education Science & Technology

KAM Knowledge Assessment Methodology

MDG Millennium Development Goals

MoU

MTS

Memorandum of Understanding

Medium Term Strategy

NEPAD New Partnership for Africa’s Development

NGO

NMI

Non-Governmental Organization

Nelson Mandela Institution

OAG

PAU

Office of the Auditor General

Pan African University

PCR

PMU

RBCSP

RISP

Project Completion Report

Project Management Unit

Result-Based Country Strategy Paper

Regional Integration Strategy Paper

RPG Regional Public Good

R-SNDP

SDG

SIRDA

SMRD

Revised Sixth National Development Plan

Sustainable Development Goals

Sustainable Integrated Rural Development in Africa

Sustainable Mineral Resources Development

SSA Sub-Saharan Africa

Stellenbosch

STI

University of Stellenbosch

Science Technology and Innovation

SUD

TYS

Sustainable Urban Development

(ADB) Group Ten Year Strategy

UCT

UN

UNU-ISP

UNZA

USD

ZMFO

University of Cape Town

United Nations

United Nations University’s Institute for Sustainability and Peace

University of Zambia

United States Dollars

Zambia Field Office

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Loan Information

Client’s information

BORROWER: Government of Zambia

EXECUTING AGENCY: University of Zambia

Financing Plan (2017-2021)

Source Amount (UA million) Instrument

ADF 1.22 Loan

Government 0.25 Counterpart Contribution

Total cost 1.47

Key financing information

Loan Currency USD

Maturity 30 years

Grace Period 5 years

Service Charge 0.75%

Commitment Fee 0.50%

Interest Rate 1%

Timeframe – Main Milestones (expected)

Concept Note Approval

June, 2016

Project Appraisal June, 2016

Project Approval December, 2016

Effectiveness February, 2017

Completion December 31, 2019

Last Disbursement March 31, 2020

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Project Summary

1. Project overview: The project is being carried out under the auspices of the Education for Sustainable

Development in Africa (ESDA), supported by a consortium of donors (the ESDA Consortium). The project

aims to contribute to youth employment and inclusive economic growth through sustainable mineral resources

development (SMRD). This objective will be achieved through two main actions: (a) building the capacity of

the University of Zambia (UNZA) to run an in-house Master’s degree program in SMRD by upgrading the

knowledge and skills of six lecturers through relevant short courses offered by the University of Cape Town

(UCT) and the University of Stellenbosch; and (b) supporting the post-graduate training of 75 students within

the framework of the ongoing Master’s program jointly run by UNZA (in Zambia) and UCT and Stellenbosch

(both in South Africa). The project will be supported through a loan amounting to UA 1.22 million from the

fund and a contribution from the Government of Zambia amounting to UA 0.25 million. The program will

target 15 Zambian students in the first year of the project and subsequently, as UNZA’s capacity is built, the

intake will increase by 30 students a year in years 2 and 3, leading to a total of 75 graduates (at least 50 percent

of them female) by the end of the project.

2. Implementation arrangements: The UNZA will be the Executing Agency for the project and will be

responsible for implementing the project activities. Its experienced staff who have been assigned to the project

will perform these tasks. Thus, the Project Coordinator will be the Dean of the School of Mines. Other staff

include a Project Manager, a Financial Analyst (for disbursement), and a Procurement Specialist. Periodic

monitoring and evaluation (M&E) by the Bank will help identify and address implementation lapses on a

timely basis. Strategic guidance will be provided by a Steering Committee, which will maintain a linkage with

the ESDA Consortium.

3. Needs assessment: In alignment with the Bank’s core policies and strategies, including the Ten-Year

Strategy (TYS) and the High Five Agenda, the project will contribute to the achievement of economic growth

and sustainable development in the country by developing the knowledge and skills needed to ensure the

inclusive management of mineral resources. By ensuring the production of a critical mass of mineral resources

management specialists for the country, the project will effectively contribute to meeting the labour market

needs of the mining sector, thereby improving youth employment in the country in Zambia.

4. Bank’s added value: The project will contribute to strengthening UNZA’s institutional capacity to

provide training in sustainable mineral resources management. The Master’s program in SMRD will provide

theoretical and practical training to 75 graduate and post-graduate students by the end of the project in

sustainable mineral resources management and production, in an attempt to develop the skills and knowledge

required for enhancing sustainable mineral resources development in the country. As part of the institution’s

strengthening in SMRD, six lecturers from UNZA’s School of Mines will undergo short training sessions that

address the complex relationships between sustainable development and mineral resources development.

5. The program will complement other mining-related training programs offered in the country, which

are mainly focused on science and engineering, by promoting a new perspective on sustainability, transparency

and inclusiveness in the mineral resources sector. The program will also serve as a catalyst for strengthening

public-private partnerships in mining-related training, by providing a new platform for dialogue among the

three universities, policymakers, industry players and the community. In addition, the program will constitute

a pedagogical innovation that emphasizes field orientation, problem solving and inter-personal work.

Furthermore, the upgrading of the knowledge and skills base in the School of Mines will make it possible to

increase the program’s yearly intake and create a critical mass of SMRD specialists in the country over the

long term – so much needed for its sustainable development. Finally, the project will provide a seed for sub-

regional academic integration in Southern Africa through the inter-institutional cooperation of the universities

in Zambia and South Africa.

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6. Knowledge management: Lessons learned from previous Bank-supported operations and integrated

in the project design include: (a) full involvement and ownership of the development of the project by the

beneficiaries is critical to ensure the realization of results; (b) building on the quality of an existing program

rather than creating a new one ensures project efficiency; (c) close monitoring and evaluation are critical to

managing risks and enhancing achievement of results. Furthermore, the project has been carefully designed to

ensure its complementarity with the ongoing Bank-supported operation in higher education in the country; the

new project focuses on skills development of post-graduate students in the new field of SMRD, while the

ongoing project focuses technical, vocational, education and training (TVET) in mining for undergraduates.

Finally, as a joint academic venture collaboratively run by three universities from Zambia and South Africa,

the innovative Master’s program supported by the project could be replicated in other regions of the continent

as a seed for regional academic integration. The operational lessons guiding the design and implementation of

the project and the innovative features of the Master’s program constitute knowledge that will be made

available through documents and websites, and will help inform exchanges among concerned experts.

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Result-Based Logical Framework

RESULTS CHAIN

PERFORMANCE INDICATORS MEANS

OF

VERIFICA

TION

RISKS/MITIGATION

MEASURES Indicator

(including CSI) Baseline Target

IM

PA

CT

Contribute to sustainable

mineral resources

development, youth

employment and inclusive

economic growth

Youth unemployment

Corruption Perceptions

Index (CPI)

Mining share of GDP

In 2016

% (% females)

In 2016

38/100

2016

7.7%

In 2026

8% (7% females)

In 2026

42/100

2026

10%

-National

Development

Plan (NDP)

-Progress

reports on

achievement of

NDP targets;

-Transparency

International

Annual Report

OU

TC

OM

ES

Outcome 1

UNZA School of Mines

capacity built to run in-house

Master’s degree program in

SMRD

Skills needs for sustainable

mineral resources

development increasingly

met

Number of lecturers

from UNZA School of

Mines qualified in

SMRD

Availability of Master’s

program in SMRD

% of employers satisfied

with SMRD Master’s

graduates

In 2016

1

No

% (to be

determined)

In 2019

6 (30% females)

Yes

80% (75%

satisfaction about

female graduates)

-Labour force

survey

-Reports from

relevant

companies

Risk: Insufficient faculty at School of Mines

qualified in SMRD.

Mitigation: The lack of qualified staff will

be offset by the participation in the program

of highly qualified academic staff from the

two other participating universities

(University of Cape Town and University of

Stellenbosch, both in South Africa).

Subsequently, this risk will be fully

addressed through the project’s support for

upgrading the knowledge and skills of

UNZA staff.

Outcome 2

SMRD practitioners with

relevant skills in

SMRDsustainable employed

in the minerals sector

Employment rate of

SMRD program

graduates

In 2016

% (to be

determined)

In 2019

95% (80% of

female graduates

employed)

-Labour force

survey

-Companies’

reports

Risk: Difficulty recruiting female students

into the program.

Mitigation: Outreach campaign to enhance

women’s interest in the program; motivation

through scholarship support.

Outcome 3

Sustainability mainstreamed

in country’s relevant

operations pipeline

% increase of

Government’s relevant

operations with specific

sustainability goals

In 2016

# (to be

determined)

In 2019

30 % increase

-Govt. reports

-donors’

perform. &

account. reports

OU

TP

UT

S

Output 1:

All four Master’s degree in

SMRD courses available

Number of Zambian

students who completed

SMRD courses

2016

8 candidates

(38% females)

2019

75 candidates (at

least 50% females)

-Reports of the

Dean of School

of Mines

Risk: Students might not complete the

courses.

Mitigation: Close academic guidance.

Output 2:

SMRD internships

completed

Number of internship

reports completed and

submitted

2016

No reports

required

2019

75 (50% from

female students)

-Reports of the

Dean of School

of Mines

Output 3:

Studies on SMRD issues

undertaken

Number of policy papers

on SMRD

2016

None

2019

20

-UNZA website

-OSHD files

COMPONENTS COST

KE

Y

AC

TIV

ITIE

S

1. Capacity building in sustainable mineral resources development UA 468,000

2. Internships for acquisition of field and practical knowledge UA 285,000

3. Analytical work on key sustainability issues in the minerals sector UA 465,000

4. Support to Project Management UA 252,000

Grand Total UA 1470000

Country and project name: Zambia - Education for Sustainable Development in Mineral Resources Management Project at the University of

Zambia

Purpose of the project: The project aims to contribute to youth employment and inclusive economic growth through sustainable mineral resources

development (SMRD).

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Project Time Frame

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REPORT AND RECOMMENDATION OF THE MANAGEMENT OF THE

BOARD OF DIRECTORS ON PROPOSED LOAN TO EDUCATION FOR

SUSTAINABLE DEVELOPMENT IN THE MINERAL RESOURCES

MANAGEMENT PROJECT AT THE UNIVERSITY OF ZAMBIA

Management submits the following Report and Recommendation on a proposed ADF Loan for

UA 1.22 million to the Government of the Republic of Zambia to support the Education for

Sustainable Development in Mineral Resources Management Project at the University of

Zambia.

I. STRATEGIC THRUST AND RATIONALE

1.1 Project linkages with relevant strategy and objectives

1.1.1 The project is a capacity building operation with significance for regional

integration. It is one pillar of the Education for Sustainable Development in Africa

(ESDA) program, which aims establishing three Master’s degree programs in sustainable

development at different African universities in order to build institutional capacities and

develop skills that will ensure sustainable development in Africa. Indeed, the sustainability

approach as applied to the mineral resources production revitalizes the sector and enhances its role

in the achievement of sustainable development in mineral resources rich countries by spurring

inclusive economic growth and improving the quality of life of the populations in harmony with

the environment. The sustainable development approach to mineral resources production is in

sharp contrast with the old perspective of mineral resources exploitation that has essentially

consisted in the extraction and export of raw resources not only without sufficient attention paid

to the transformation of the minerals into value- loaded products, but also without adequately

integrating the interests of the populations and the environmental concerns in the production

process of the resources. The ensuing economic inefficiency and corruption coupled with the

social distortions and environmental degradations have in the past led to a waste of scarce valuable

resources, social injustices, increased poverty and social and political instability in countries such

as Zambia . A key objective of the ESDA initiative is to promote sustainability in the extractive

sector so as to make it a mainstay of African pertinent country’s economy and play a central

role in the development process of the continent.

1.1.2 The proposed project supports one of three Master’s programs in sustainable

development, namely the Sustainable Mineral Resources Development (SMRD) in Africa. The

other two Master’s programs under ESDA are: “Sustainable Urban Development (SUD) in

Africa”, and “Sustainable Integrated Rural Development in Africa (SIRDA)”. The Master’s

program in SMRD was designed by the University of Cape Town (UCT) and the University of

Zambia (UNZA) with the assistance of the United Nations University’s Institute for Sustainability

and Peace (UNU-ISP), and launched in 2014.1 Its purpose is to contribute to the production of the

skills needed in mineral well endowed African countries such as Zambia for maximizing the role

of natural mineral resources in inclusive economic growth and social development. Despite

mining remaining the mainstay of the country’s economy and playing a central role in the

development process, the intensive capital orientation that this industry has been experiencing

in recent years has generated higher demand for more education and higher technical skills that

are lacking in the extractive sector. Thus, more professionals with graduate degrees are needed

in the mining industry for it to fully develop. In addition to highly trained and qualified 1 ESDA has involved a number of partners, the two main partners being UNU-ISP and the Ministry of Education of

Japan. Other institutions that have provided support include SIDA and selected Japanese and Northern European universities,

including Karlstad University in Sweden and Adder University in Norway. Since October 2008, UNU-ISP and the Ministry of

Education of Japan have worked with a group of leading African universities to explore the possibility of jointly establishing a

post-graduate program on sustainable development in Africa

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assessors, stone cutters, polishers, designers and sellers, there is an increasing need for

specialists in sustainable mineral resources development (SMRD). The other two Master’s

degree programs are being finalized and will be handled by participating universities in Kenya,

Ghana and Nigeria. Together, these three Master’s programs will help to create a critical mass

of professionals equipped to confront the challenges of sustainable development on the

continent.

1.1.3 The SMRD project, like the ESDA program as a whole, is in line with economic

growth and sustainable development priorities in Africa, as defined in the African Union

Commission (AUC)’s Plan of Action for its Second Decade of Education Strategy (2006-2015)

and its Agenda 2063 (The Africa We Want). These strategies highlight the need to enhance

higher education on the continent in order to catalyze the skills revolution and actively promote

science, technology, research and innovation. The strategies also emphasize the urgent need to

invest in the knowledge production required to add value to Africa’s natural resources and spur

inclusive growth and sustainable development, while fostering regional academic cooperation

and integration.

1.1.4 As a national investment, the operation is specifically aligned with Zambia’s

development agenda as outlined in its Revised Sixth National Development Plan (R-

SNDP) for 2011-2016. A Seventh National Development Plan (2017-2021) is currently under

preparation, with a strategic focus similar to the current plan. In view of the shortcomings of

human capital in the country, the R-SNDP, which aims to achieve the objectives set out in

Vision 2030 of becoming a “prosperous middle-income country by 2030”, focuses, inter alia,

on skills development, improving labour productivity, higher and tertiary education, and

facilitating the distribution of skilled labour within and across sectors and throughout the

country. The proposed project complements and reinforces the ongoing Bank-supported

operation in higher education in the country, entitled “Support to Science and Technology

Education Project”, which supports a variety of trainings at undergraduate, graduate and

postgraduate levels in several fields, including agriculture, engineering, science and

engineering-related mining, natural science, teacher education, and medicine. While also

contributing to skills development in Zambia, the proposed project focuses exclusively on

training graduate students through a two-year Master’s program in SMRD, and on building the

capacity of UNZA’s School of Mines in SMRD through the provision of eight-week courses

to six of the school’s lecturers.

1.1.5 The project objectives are also in line with the Bank’s core policies and strategies,

including the 2011-2015 Result-Based Country Strategy Paper (RBCSP), the Ten-Year

Strategy (TYS) 2013-2022, the Human Capital Strategy (HCS), and the High Five

Agenda. Owing to its support for skills development in SMRD, the project is aligned with the

RBCSP’s Pillar 2, which relates to economic and financial governance. The Master’s degree

program in SMRD will contribute to promote efficiency, transparency and accountability in

the management of public resources. The TYS 2013-2022 strategy focuses on inclusive growth

and the transition to green growth, regional economic integration, and the development of skills

and technology. In addition, the project captures the aims of the HCS, including the promotion

of science, technology and innovation. Finally, consistent with the Bank’s Regional Integration

Strategy Paper (RISP), the project will contribute to regional integration in Southern Africa

through inter-institutional academic cooperation involving the University of Cape Town (UCT)

and the University of Stellenbosch in South Africa and the University of Zambia (UNZA) in

Zambia.

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1.2 Rationale for Bank’s involvement

1.2.1 The project will help improve the country’s skills gap in the economic sector in

general, and more specifically in the area of sustainable mineral resources development. In the Zambian labour market in 2012, only

4.8 percent of the labour force had post-

secondary or tertiary level education

(including A levels, certificates, and degrees

(Figure 1). About 84 percent of degree

holders had professional-level occupations,

including managers, professionals and

technicians. Those with university degrees

(both undergraduate and graduate) make up

approximately one percent of the labour

force. The low unemployment rate among

post-secondary and tertiary degree holders indicates that the labour market is absorbing high

skills well and probably needs more. The shortage of high skills in the labour market translates

into a hierarchy in wages based on education. This is especially true in the mining industry,

where the largest premiums come from undergraduate and graduate university degrees,

indicating that this is a constraint in this sector. Studies have pointed out the skills mismatch

between the type of employees wanted by the mining industry and the type available, and have

shown that this mismatch will increase. Moono and Rankin (2013)2 estimated that in 2012 there

was a shortage of 540 skilled workers, with the largest gaps for craft certificate holders –

mining (209), technicians – mining (120), and graduates – mining (47).

1.2.2 By supporting the project, the Bank will help to address an even more acute skills

gap in the specific domain of management for SMRD, which requires the kinds of

expertise and competences that are quite new in Zambia. In the Zambian extractives sector,

the emphasis has been primarily on the extraction of the mineral resources for export in their

raw state. Very little expertise relating to management of these resources for sustainable

development exists in the country. As a consequence, exploitation of the country’s mineral

resources has not been linked to improving the quality of life of the population. The project

intends to address these shortcomings through an innovative pedagogical approach that will:

(a) foster dialogue among the universities, policymakers, industry players and the community;

(b) be field oriented; (c) strengthen problem-solving capacities and the inter-personal work

skills of graduate students; and (d) expose students to advanced technologies and innovations

in the mining industry. This instructional design constitutes a model in graduate training that

could be replicated elsewhere to enhance the quality and relevance of similar operations.

1.3 Donor coordination

The main aid coordination instrument is laid out in the Joint Assistance Strategy 2011-

2015 signed by key development partners in the country, including the Bank. The Strategy

sets out the aid partners’ support to the National Development Plans, and provides a medium-

term strategic framework to realize these principles and to align development to Zambia’s Aid

Policy and Strategy. The aid strategy is grounded in three guiding principles: (a) managing for

development results; (b) working in partnership, including establishing a division of labour;

and (c) promoting domestic accountability. The aid architecture is well structured and

institutionalised through the Cooperating Partners Group (CPG) led by a Troika. Sector

Advisory (Working) Groups hold regular joint sector group meetings and policy dialogue with

Government. The Bank is active in the CPG and led the Troika in 2012. The Bank also

2 Moono, H. and Rankin, N. (August 2013). Education and Employment in Zambia: Evidence from a scoping exercise.

Working Paper funded and published by IGC

Figure 1.2 : Highest education level : Zambian labor force

Source: Herryman Moono and Neil Rankin - Working Paper funded and published in

August 2013 by the IGC, “Education and Employment in Zambia: Evidence from a

scoping exercise”.

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participates in relevant working groups and has chaired working groups for transport,

agriculture, water, sanitation and monitoring and statistics. The social sectors have received the

most support, with health at 33 percent, education at 6 percent and other social at 35 percent.

Economic infrastructure received 9 percent, and the productive sectors received 7 percent. The

remaining 10 percent was for multi-sector and project assistance. Key long-term partners in

Zambia include the European Union, the World Bank, Japan, the UN System and bilateral

donors from Europe and the United States. Both CPG and relevant working groups will be

solicited as deemed necessary for exchange of experience among development partners to

ensure successful implementation of the project. Both CPG and relevant working groups will

be used as main channels for donor coordination and exchange of pertinent experience between

development partners in the implementation process of the project. Details of development

partners (DP) areas and level of support (excluding General Budget Support) for the education

sector are given in Technical Annex A.2.

II. PROJECT DESCRIPTION

2.1 Project components

2.1.1 Project design and components: The development objective of the project is to

contribute to youth employment and inclusive economic growth through Sustainable

Mineral Resources Development (SMRD) in Zambia. The specific objective of the project

is to enhance UNZA’s capacity to effectively implement a Master’s degree program in SMRD.

In this respect, two main activities are foreseen: (a) upgrading the knowledge and skills of six

lecturers from the UNZA School of Mines as part of an effort to build the capacity of the School

to offer an in-house Master’s program in SMRD; and (b) train, by the end of the project, about

75 graduate students in the area of sustainable mineral resources management and

development. The upgrading training of the lecturers will take place at UCT and Stellenbosch

in South Africa, which are highly qualified in the field of SMRD and have entered into a strong

partnership with UNZA in the framework of the Master’s program in SMRD. The Master’s

program will be aimed at Zambian students and will be run jointly by UNZA and by UCT and

Stellenbosch, both in South Africa. Candidates for the program will be from the mining

industry, who are generally employed either directly by mining companies, the government

service or civil society.

2.1.2 The overarching purpose of the Master’s Degree program in SMRD is to provide

students with an opportunity to: (a) develop an advanced understanding of sustainability and

sustainable development in the context of the extraction and processing of mineral resources

in the country; and (b) experiment with interdisciplinary and systemic approaches to

environmental protection and socioeconomic development in the context of national extractive

industries. Table 2.1 below presents a brief description of the project by component while a

more comprehensive presentation is provided in paragraphs 2.1.3 to 2.1.5. Technical Annex

B.2 provides a more detailed presentation of the project and its cost.

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Table 2.1: Project components

Component No.

and name

Cost

(million

UA)

Component description

1. Capacity

building in

sustainable

mineral resources

development

UA

468,000

This component consists of two main activities: (a) to

deliver four courses to 15 to 30 students yearly in the

framework of the Master’s degree program in SMRD. The

program will be initially run jointly by UNZA, UCT, and

Stellenbosch while waiting for UNZA’ School of Mines to

build the necessary capacity for running the same program

in house; and (b) to upgrade the knowledge and skills of 6

lecturers from UNZA’ School of Mines in the domain of

SMRD in an effort to build the institution’s capacity for

running the same Master’s program in house.

2. Internships for

acquisition of

field and

practical

knowledge

UA

285,000

This component supports arrangements for internships. The

internships will last about 3 weeks although they can be

extended to 6 weeks depending the nature of the host

company. They aim at: (a) facilitating field-based inter-

disciplinary learning; (b) providing an opportunity to

experience possible career options in the area of sustainable

development; (c) enriching the knowledge of the host

organization; and (d) contributing to UNZA’s social

responsiveness objectives.

3. Analytical

work on key

sustainability

issues in the

minerals sector

UA

465,000

This component will support (a) research by students for

their dissertations; and (b) faculty research activities in

relation to key SMRD challenges. Both student and faculty

research papers will be developed into SMRD policy papers

owned by UNZA. About 20 such papers will be produced by

the end of the project. Themes to be tackled in the research

activities include: gender issues; effective engagement with

local communities; legislative and social license to operate;

responsible management of large volumes of mineral waste;

the strategic development of mineral value chains; mine

health and safety; and other critical SMRD-related issues.

4. Support to

Project

Management

UA

252,000

This component will facilitate the implementation of the

project. Activities will include: (a) support to the recruitment

of candidates to the Master’s degree program in SMRD; (b)

program and course convening and administration; (c)

support to internship program arrangements; and (d) support

to research and conference organization. Project oversight

activities will include reporting, financial management and

audit, coordination, and the activities of the Steering

Committee.

TOTAL UA

1,470,000

Component 1: Capacity building in sustainable mineral resources development

2.1.3 Two main activities are foreseen under this component: (a) delivery of four

courses for graduate and post-graduate students within the framework of a Master’s

degree program in SMRD; and (b) strengthening the capacity of lecturers at the UNZA

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School of Mines through advanced short courses in SMRD, to enable them to effectively

implement the Master’s program. The courses for students will deal with inter-related issues

in sustainable development in the context of mining and minerals beneficiation. They include

(a) a sustainable development course delivered at the Sustainability Institute of the University

of Stellenbosch in South Africa; (b) a strategic social engagement practice course designed and

coordinated by UCT Graduate School of Business (GSB) in South Africa; (c) a course on

environmental stewardship in mining and minerals beneficiation delivered jointly by UNZA

and UCT; and (d) a course on environmental stewardship in mining and minerals beneficiation,

taught at UNZA.

2.1.4 UCT Graduate School of Business (GSB) in South Africa will be responsible for the

implementation of the strategic social engagement practice course. The course is delivered over

a period of 6 days largely through lectures, interactive sessions and group work, and is followed

by a project task in which each student is required to apply the tools and practices developed

in the course into their daily work practice. This course is designed to build the capacity of all

managers and professionals in organizations to respond effectively and innovatively to

emerging system pressures and trends affecting the socio-economic development agenda. In

the context of increasing societal expectations, the course aims to develop the ability of

participants to engage positively with all stakeholders impacted by their organization‘s

operations. After the course, the student is expected to: (i) understand the emerging global

pressures and trends, and their impact on mineral Resources development; have the capacity to

anticipate change and develop appropriate responses; Be able to engage with diverse

perspectives; be capable of designing, delivering and evaluating social development

interventions; exhibit enhanced dialogue skills, particularly within conflict situations; be able

to develop a framework for social performance and impact within his/her sphere of influence

2.1.5 Lecturer training will consist of 8-week courses on emerging issues in sustainable

development as related to the mineral resources sector. These courses will equip School of

Mines faculty members with the knowledge and analytical ability required to effectively

discharge their academic responsibilities within the framework of the Master of Mineral

Sciences in SMRD. The courses will enable these faculty members to understand the complex

inter-relationship of mineral resources processing, socioeconomic development and

environmental stewardship. The project will prepare the School of Mines to eventually be in

the position to independently offer an in-house Master’s-level SMRD program.

2.1.6 The courses for students will be delivered collaboratively by UNZA, UCT and

Stellenbosch. The short courses for the lecturers will be provided by UCT and Stellenbosch,

as these two universities have the relevant capacities in SMRD. The inter-institutional

academic cooperation between UNZA and UCT has been formalised by a Memorandum of

Understanding (MoU) signed in 2014. This cooperation constitutes a distinctive, innovative

feature of the Master’s program and ensures that students have access to best practice

information in SMRD. The courses will be given over two years, with the first year consisting

of lectures, and the second year reserved for internships and dissertations. The first-year

lectures are split into three modules, the first delivered at Stellenbosch, the second at UCT, and

the third module at UNZA, with provision for a mine site visit in the Zambian Copperbelt for

data collection. The teaching faculty will incorporate lectures from all three participating

institutions in the study program. A total of 15 Zambian students will be recruited in the first

year of the program. However, as UNZA builds its capacity in SMRD, the number of Zambian

students will rise to 30 in the second and third years respectively, which will lead to a total of

75 graduates from the UNZA Master’s program by the end of the project. The limited intake

of the program is explained by the specialized nature and demanding supervision requirements

of the proposed training. UCT and UNZA have agreed to acknowledge the module results

generated by each university towards the final results of each student. In the second year,

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students will undertake their dissertations at their respective institutions, but will have the

flexibility to seek co-supervision between the two institutions. With regard to the financing

model, each university has developed a cost profile in line with its respective internal

arrangements, and the required fees are paid directly to the institutions.

2.1.7 The Master’s degree program in SMRD offers a new perspective compared to the

science-related perspective that dominates teaching in mining. The Schools of Mines of the

two largest public universities in the country, UNZA and Copperbelt University (CBU), have

historically offered Master’s programs in science and engineering-oriented areas of mining,

such as geology, hydrology, environment, rock mechanics, mineral production, and metallurgy

and mineral processing. UNZA’s new Master’s program, by contrast, will focus on the soft

aspects of mining management and development, with the aim of developing the competencies

of mining professionals to navigate the complex inter-relationships among mineral resources

exploitation, environmental challenges, safety and health-related issues, and mining regulatory

frameworks. Students will learn to take a participatory approach to fostering transparency and

community ownership of operations in order to achieve inclusive and sustainable development.

The knowledge and skills developed within this new paradigm are key to achieving the R-

SNDP (2013-2016) goals of inclusive growth, rural development and job creation. Based on

the 75 high-skilled graduates that the project will produce, along with the mining-related

research they will conduct, it is foreseen that the project will increase the proportion of workers

in the mining sector with a graduate degree by 30 percent. This will contribute to: (a) a decrease

in youth unemployment in the country from around 14 percent (a bit lower for females) in 2014

to an estimated 8 percent (7 percent for females) in 2026; and (b) an increase of the share of

the mining sector in GDP from 7.7 percent in 2016 to an estimated 10 percent in 2026.

Component 2: Internships for acquisition of field and practical knowledge

2.1.8 The internship component aims at building the capacities of both students and

hosting organizations. Students will be placed with mineral resources-related organizations

involved in partnerships with UNZA. Internships will be typically for a period of three weeks,

with the possibility of extending to six weeks. The specific content and aims of the structured

internship will be tailored to the needs of each student and recorded in a Memorandum of

Understanding (MoU) signed by the student, the host organization, and the course convener.

The internship program is specifically designed to: (a) facilitate field-based inter-disciplinary

learning through structured on-site engagements using problem-solving approaches; (b)

provide an opportunity to experience possible career options in the area of sustainable

development; and (c) make a service contribution that will be useful to the host organization,

while also contributing to the University’s social responsiveness objectives. During the

internship, the student will keep a logbook and will complete an internship report for the host

organization and for submission to the University. A total of 75 internship reports will be

produced by the students by the end of the project. UNZA has built cooperative relationships

with a number of companies and civil society organizations involved in the mining sector which

may host interns. These host organizations include Konkola Copper Mines Limited; Maamba

Coal Mines Limited; Kariba Minerals Limited; and the Centre for Trade, Policy and

Development.

Component 3: Analytical work on key sustainability issues in the minerals sector

2.1.9 This component will support the production of knowledge pertaining to SMRD

and related operations aiming at moving the country toward attainment of the

Sustainable Development Goals (SDGs). Apart from post-graduate training through

coursework and internships, the program offers students an opportunity to undertake research

of real-life problems within the framework of their dissertations and under the joint supervision

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of qualified faculty from UNZA, UCT and Stellenbosch. The research will emphasise the use

of interdisciplinary approaches to problem solving. The content of the dissertations will be

harnessed to produce at least 20 policy papers that help to clarify issues related to the need for

a clear-cut legislative framework for operating in the mining sector, responsible management

of large-volume mineral waste, the strategic development of mineral value chains, mine safety,

gender issues arising in the sector, transparency, inclusiveness in management, and

environmental sustainability.

Component 4: Support to project management

2.1.10 Provisions are made under the project to support the management and

coordination of project activities. This component will consist of organizing project activities

and ensuring their effective and timely implementation, as well as monitoring and evaluation

(M&E). UNZA will be responsible for executing the project. Its experienced staff who have

been assigned to the project will perform these tasks. Thus, the Project Coordinator will be the

Dean of the School of Mines. Other staff include a Project Manager, a Financial Analyst (for

disbursement), and a Procurement Specialist. The activities of UNZA will include: (a)

recruitment of candidates to the Master’s degree program in SMRD; (b) program and course

convening and administration; (c) support to internship program arrangements; and (d) support

to research and conference organization. Furtheremore, UNZA will produce four quarterly

reports each year, an annual audit report, at least one impact evaluation report, and a completion

report at the end of the project. It will also be responsible for managing the operational costs

of the project.

2.2 Technical solution retained and other alternatives explored

2.2.1. The technical solution to the need for a critical mass of SMRD professionals in the

country is the creation of a new Master’s Degree program in SMRD, as an academic joint

venture involving UNZA, UCT, and Stellenbosch. This solution will allow Zambia to benefit

from external human, material and technical resources as it initiates action to develop, with

limited resources of its own, the skills and competencies it needs in this area. As UNZA’s

institutional capacity in SMRD is built owing to the project, this university will be able at a

later stage to offer its own Master’s level SMRD program independently.

2.2.2 The alternatives considered in designing the project and reasons for rejection are

summarized in Table 2.2.

Table 2.2: Project alternatives considered and reasons for rejection

Alternative

name

Brief description Reasons for rejection

Providing

financial

assistance to

qualified

Zambian students

for training

abroad

This alternative consists in

establishing a fund for awarding

full scholarships to qualified

Zambian students for a MSc

training abroad, and in South Africa

specifically, in the management of

natural mineral resources for

sustainable development.

- The risk of students failing to return to

Zambia, thus increasing brain drain.

- The training program may be less

profitable to Zambia as students will

probably conduct research of less relevance

to Zambia’s needs.

- UNZA will miss an opportunity for

building its capacity in the delivery of

training in management of the natural

mineral resources for sustainable

development.

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The University of

Zambia (UNZA)

runs from the

start of the

project the

Master’s program

independently

This alternative involves UNZA to

take full charge of the delivery of

the program as an exclusive

component of the training program

offered by the university, fully

relying on its faculty staff

members.

- Lack of qualified teachers and researchers

at UNZA in critical areas of specialization

in natural mineral resources management.

- Recruitment of external academic staff to

reinforce national faculty staff for the

program would prove excessively costly.

- UNZA’s students and faculty staff

members would miss an opportunity for

external institutional experience in the

science of mining.

2.3 Project type

The project is a stand-alone investment operation. This approach was chosen (in lieu of, for

instance, budgetary support) due to the innovative and specific nature of the operation, as well

as the fact that the implementation of related activities will require the procurement of goods

and services in a relatively short period of time through a process involving the private sector,

which necessitates both flexibility and close follow up.

2.4 Project cost and financing arrangements

2.4.1 The total cost of operating the UNZA Master’s program for 3 years (2017-2019) is

estimated at UA 1.47 million (USD 2.05 million). Of this amount, 40 percent is in foreign

exchange. A loan from the African Development Fund (ADF) will support all components.

The government will partially finance component 2 and component 4 in kind for an estimated

amount of 250,000 UA. Details of costs are presented in the tables below.

2.4.2 Tables 2.4.1 and 2.4.2 present estimated project costs by component and category

of expenditure. Technical Annex B.2 provides details of the same costs. Tables 2.4.3 and

2.4.4 show expenditures by component and category of expenditure, respectively. Tables 2.4.5

and 2.4.6 show the expenditure schedule by component and by category of expenditure,

respectively. Costs have been estimated on the basis of data obtained from the institutions

involved. A price contingency of 4.5 percent and a physical contingency of 3 percent have been

included in the cost estimates.

Table 2.4.1: Project cost estimates by component

USD UA

Component Local Foreign Total Local Foreign Total

1. Capacity building in natural mineral

resources management for sustainable

development 278,729 315,284 594,012 203,130 229,770 432,900

2. Internships to support capacity

building through acquisition of field

and practical knowledge 175,158 186,581 361,738 127,650 135,975 263,625

3. Analytical work on key

sustainability challenges in the

minerals sector

295,102 295,102

590,205 215,063 215,063 430,125

4. Support to Project Management 319,853 0 319,853 233,100 0 233,100

Total base cost 1,121,833 743975 1,865,808 817,561 542,189 1,359,750

Physical contingencies 36,384 24,129 60,513 17,585 44,100 44,100

Price contingencies 54,576 36,193 90,769 26,377 66,150 66,150

Total cost 1,212,792 804,297 2,017,090 883,850 58,6150 1,470,000

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Table 2.4.2: Project cost by category of expenditure

Category of

expenditure USD UA % F. Exch

Local F. Exch Total Local F. Exch Total

A. Goods 27,416 63,971 91,387 19,980 46,620 66,600 70%

B. Services 3,808 15,231 19,039 2,775 11,100 13,875 80%

C. Training &

workshops 717,765 717,765 1,435,530 523,088 523,088

1,046,175 50%

D. Operations 319,853 0 319,853 23,3100 0 233,100 0%

Base cost 1,121,833 743,975 1,865,808 81,7561 542,189 1,359,750 40%

Physical contingencies 36,384 24,129 60,513 26,515 17,585 44,100 40%

Price contingencies 54,576 36,193 90,769 39,773 26,377 66,150 40%

Total cost 1,212,792 804,297 2,017,090 883,850 586,150 1,470,000 40%

Table 2.4.3: Expenditure by source and component (UA)

Component ADF Government Total

1. Capacity building in natural mineral resources

management for sustainable development 468,000 0 468,000

2. Internships to support capacity-building through

acquisition of field and practical knowledge 162,000 123,000 285,000

3. Analytical work on key sustainability challenges

in the minerals sector 465,000 0 465,000

4. Support to Project Management 150,000 102,000 252,000

Total project cost 1,220,000 250,000 1,470,000

Table 2.4.4: Expenditure by source and category (UA)

Category of expenditure ADF

Governme

nt Total

A. Goods 72,000 0 72,000

B. Services 15,000 0 15,000

C. Training & workshops 949,999 148,000 1,131,000

D. Operations 150,000 102,000 252,000

Total 1,220,000 250,000 1,470,000

Table 2.4.5: Expenditure schedule by component (UA)

Component 2017 2018 2019 Total

1. Capacity building in natural mineral resources

management for sustainable development 204,000 132,000 132,000 468,000

2. Internships to support capacity-building through

acquisition of field and practical knowledge 95,000 95,000 95,000 285,000

3. Analytical work on key sustainability challenges

in the minerals sector 200,000 148,000 117,000 465,000

4. Support to project management 84,000 84,000 84,000 252,000

Total project cost 583,000 459,000 428,000 1,470,000

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Table 2.4.6: Expenditure schedule by category of expenditure (UA)

Category of expenditure 2017 2018 2019 Total

A. Goods 72,000 0 0 72,000

B. Services 5,000 5,000 5,000 15,000

C. Training & workshops 422,000 370,000 339,000 1,131,000

D. Operations 84,000 84,000 84,000 252,000

Total 538,000 459,000 428,000 1,470,000

2.5 Project’s target area and population

2.5.1 The project targets two types of beneficiaries: (a) lecturers at the UNZA School of

Mines, whose knowledge and skills in SMRD need to be upgraded; and (b) the graduate

students who will participate in the Master’s degree program in SMRD. The training for the

lecturers aims at building the capacity of the School of Mines to independently run a Master’s

program in SMRD. The Master’s program aims at creating a critical mass of mining

professionals in the country that are prepared to meet the challenges of sustainable management

and development of the mining sector. Openings for the program will be advertised in major

newspapers, and applicants will be competitively selected based on their academic

achievements. Special attention will be given to the recruitment of female students to ensure

gender balance in the program. Female students’ participation in the program since 2014 has

been uneven, with 57 percent in 2014/2015 and 37 percent in 2015/2016. Attempts will be

made to steadily increase their participation.

2.5.2 Socio-economically disadvantaged students will receive partial scholarships to

cover the costs of their courses, internships and dissertation research, while those who

are more socially fortunate will pay full tuition. Although aimed at fostering equity in

participation, scholarships will be competitive and awarded to disadvantaged students on the

basis of merit. This approach will ensure the most effective use of limited project resources.

The importance of scholarships as a mechanism for reducing inequality is justified by the fact

that 77 percent of the university enrollment in Zambia is from the richest 10 percent of the

population. Potential beneficiaries of the scholarships will be identified through a detailed

screening of applicants. The Department of Social Welfare under the Ministry of Community

Development, Mother and Child Health will be responsible for assessing applicants’ financial

status and producing a social welfare report. Field officers of this department will visit

households to verify information in the application and check for necessary documentation.

The assessments will conclude with the assessor’s recommendation for eligibility to the

scholarship scheme. Students from other African regions, especially neighboring countries,

may attend the program. However, such students will have to pay the full tuition fees for the

courses (amounting to about USD 12,000).

2.5.3 The yearly program intake will be 15 students the first year and 30 students

starting the second year, when the UNZA School of Mines will be in a position to run the

program in-house. This will enable the School of Mines to train 75 graduate students by the

end of the project in 2020. The relatively small size of the SMRD Master’s program is justified

by the fact that the program is a high-level, specialized and demanding training program that

requires close guidance and mentoring of students by the academic staff during their class

courses and dissertation research activities. In addition, students will undergo structured

internship programs under the close supervision of both faculty and private sector advisors

carefully selected to provide pre-professional guidance to interns at the workplace. The

rigorous nature of the Master’s program makes it difficult to increase the number of trainees,

contrary to the situation in general higher education programs. Furthermore, the graduates from

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the Master’s degree in SMRD represent an asset to the mining industry in so far as they will

bring a unique perspective in addressing issues pertaining to the mining sector that will ensure

sustainability in the development of mineral resources for inclusive growth, job creation, rural

development and poverty reduction.

2.6 Participatory process for project identification, design and implementation

The project was designed through a participatory process involving major stakeholders. During the project appraisal, consultative meetings were held with the academic and

administrative authorities of UNZA and UCT; and with students, development partners,

government authorities (high-level officials from the Ministry of Higher Education and the

Ministry of Finance), ESDA experts, and private sector representatives (Chamber of Mines).

These consultations provided a venue for the major stakeholders to express their full support

for the operation and their willingness to contribute to its successful implementation in their

various capacities. Recommendations and suggestions obtained from the consultations

informed the design of the project. Thus, implementation arrangements foresee the active

participation of the private sector, civil society and members of the ESDA consortium within

the framework of the project Steering Committee. UNZA will be responsible for all aspects of

technical, financial and procurement management.

2.7 Bank Group experience, and lessons reflected in project

2.7.1 The project is informed by lessons from the Bank’s previous operational

experiences in Zambia, particularly the shortcomings in its human development sector

projects, as identified in the Country Strategy Paper (CSP) and the 2015 Country

Portfolio Performance Review (CPPR). These shortcomings included: (a) weak capacity of

implementing agencies in the areas of procurement, contract management, and adherence to

implementation schedules, which led to start-up delays; (b) weak project monitoring, results

reporting, and project evaluation; (c) weak financial management, delayed submission of audit

reports, non-compliance with fiduciary requirements, and slow disbursements; and (d) poor

coordination of Bank’s interventions. Lessons learned from the design and implementation of

these operations has led to the following improvements in the proposed project: (a) recruitment

of experienced staff with track records in their areas of specialization; (b) ensuring that the

Project Management Team is in place before project commencement to reduce start-up delays;

(c) allowing adequate time for signature delays, as experienced in the Support for Science &

Technology Education Project; (d) ensuring close supervision of the project by the

implementing agency and the Bank, including putting in place a robust M&E system in order

to improve assessment of implementation progress and impacts; (e) recruitment of an

experienced Financial Analyst or Disbursement Officer familiar with the Bank’s rules and

procedures; and (f) close coordination with other development partners through the existing

donor coordination mechanisms, primarily the CPG and the Sector Working Groups in order

to create synergies and avoid duplication.

2.7.2 The design of the project has incorporated two additional measures aimed at

improving its quality, relevance and effectiveness. First, an attempt was made to ensure

ownership of the Master’s degree program in SMRD by UNZA’s and UCT’s main actors,

including leadership team, faculty staff and students, and by involving them in the project

Steering Committee. Second, in designing the project, emphasis was put on improving the

quality of the existing UNZA/UCT Master’s program in SMRD rather than creating a new one

from scratch.

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2.8 Key performance indicators

Several impact, outcome and output-level indicators are proposed to monitor overall

performance, as shown in the logical framework (logframe) at the beginning of this

report. Impact indicators include: (a) youth unemployment; (b) Corruption Perceptions Index;

(c) share in GDP. Outcome indicators include: (a) number of qualified lecturers in SMRD at

the UNZA School of Mines; (b) an independently run SMRD Master’s program at UNZA; (c)

percentage of employers satisfied with graduates of the program; (d) rate of employment of

program graduates; and (e) percentage increase of public and private sector mining operations

that take account of SMRD with specific SDGs. Output indicators include: (a) number of

Zambian students enrolled and successfully completing SMRD courses; (b) number of

internship reports completed and submitted; (c) number of policy papers on SMRD produced.

All of these indicators will be integrated into the M&E scheme for the Master’s program, and

will serve as a basis for following up on the achievement of project objectives.

III. PROJECT FEASIBILITY

3.1 Economic and financial performance

Development perspective analysis is applied here instead of the traditional quantitative

methods (i.e., net present value, economic internal rate of return). This is because of the

difficulty of estimating the benefits of the project, since graduates of the program will have

heterogeneous training unit costs and will eventually join different labour markets. Wages are,

nonetheless, commonly used as a proxy for the premium placed on skills and as a justification

for the profitability of higher

education as an investment. This

perspective is supported by the

demonstrated positive correlation

between the level of education and

wages (Figure 2). Those with

university degrees earn more than

those with certificates or diplomas,

and those with graduate degrees

earn more than those with

undergraduate degrees. Thus, the

Master’s degree program under the

present project can be perceived as

performing well financially. The

program also has significant social and economic benefits, which are discussed in paragraphs

3.2.4 to 3.2.7.

3.2 Environmental and social impacts

3.2.1 Environment and climate change: The project is classified as category III, and will

adhere to the respective countries’ environmental and waste management guidelines and

procedures. No major environmental effects will be caused by the program. Activities will

consist of training, dissertation research, faculty capacity building, and the use of equipment

and materials needed to run the training program. Disposal of outdated equipment will be done

in accordance with the respective National Environment Management Plans, if applicable.

3.2.2 The project will have a positive impact on environment and climate change by

developing the knowledge and skills required for environmental stewardship in mining

and minerals beneficiation. The Master’s program will build competencies for understanding

environmental challenges, mining-related health and safety issues, new technologies, and

Figure 3.1: Rates of return to education, by level and type of employment

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effective mining regulatory frameworks, thus contributing to the formation of a critical mass

of specialists that can address environment and climate change issues through improved

management and innovative approaches.

3.2.3 Gender: Despite steady efforts to achieve gender parity, Zambia continues to rank

low on the Gender Inequality Index, 135 out of 152 countries. This is reflected in the labour

force participation rate of 65.4 percent for females against 76.6 percent for males. A key cause

of this imbalance is the low rate of female participation in higher education. Available data

indicate that females enrolled in the two largest public universities of the country (UNZA and

Copperbelt University) in 2009 represented 37 percent while males represented 63 percent—

almost double the number. The same distortion is observable in the SMRD program, where

female students represented 37 percent of the 2015/2016 cohort. Specific affirmative actions

will be taken within the framework of the present project to better integrate gender issues in

the program, including financial incentives, gender-sensitive advertisements, and special

orientation sessions aiming at boosting female enrolment. In addition, the UNZA School of

Mines is in the process of developing an institutional plan for gender equity that should help to

effectively address the gender gap issue in the School. All actions foreseen within the

framework of the project are conceived and designed to equally benefit males and females and

produce an equal number of male and female experts in SMRD.

3.2.4 Social and economic impact: The project will contribute to building the high-level

human capital that the mining industry needs to continue to play its role of mainstay of

Zambia’s economy and engine of the development of the country. Zambia is heavily reliant

on its copper mining industry, which has attracted more than USD 10 billion in investments

since 2000 as part of the privatization process. The copper industry alone accounts for about

10 percent of GDP and about 70 percent of export revenues. Furthermore, the copper sector

employs 10 percent of the formal labour force, contributing significantly to income tax revenue.

The country also has an abundance of other minerals, including nickel, iron ore, coal and

gemstones. These minerals have been extracted in limited amounts. However, in the past

decade Zambian gemstones have become more prominent as a major export to the global

markets. In 2013, Zambia established a gemstone exchange with the aim of maintaining more

local content in the industry. The intensive capital orientation that the mining industry has been

experiencing in recent years has generated higher demand for professionals of the mining

industry. Because of the centrality of good governance, inclusive development and

environmental preservation in sustainable development strategies, it has become apparent that,

in addition to highly trained and qualified assessors, stone cutters, polishers, designers and

sellers, there is an increasing need for specialists in sustainable mineral resources development

(SMRD).

3.2.5 Skills in SMRD are also essential for addressing corruption in the mining sector,

since effective mining sector governance is indispensable for achieving the core strategic goals

of inclusive growth, rural development and job creation, as emphasized in the R-SNDP (2013-

2016). Despite ongoing reform efforts in the country, Zambia currently scores 38 out of 100

points on Transparency International’s Corruption Perceptions Index (CPI), and ranks 15 out

of 47 African countries, and 85 out of 175 countries worldwide. By developing the knowledge

and skills needed to foster transparency and accountability in the mining sector, and helping to

ensure inclusive and sustainable mineral resources development in a way that benefits local

populations and economies, the project will also contribute to rural industrialization,

agricultural diversification, rural electrification, forestry, water and sanitation, health and

education, and employment.

3.2.6. Involuntary resettlement: Project activities will not involve any type of

resettlement. The two main institutions involved in the Master’s program, UNZA and UCT,

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are national institutions already established in their countries; and the students do not have to

resettle in another country to undertake the program.

IV. IMPLEMENTATION

4.1 Executing agency

4.1.1 UNZA will be the Executing Agency for the project and responsible for

implementing the project activities. The Project Management will comprise of a Project

Coordinator (Dean of School of Mines), a Project Manager, a Financial Analyst (for

disbursement) and a Procurement specialist who have already been identified and selected

among the existing experienced staff of UNZA. These officers will be formally assigned to the

project and will oversee the day-to-day implementation tasks. UNZA will undertake two types

of activities, one, operational and the other, administrative. The operational duties will consist

of facilitating the implementation of the Master’s program for the regular students and the

upgrading training for the lecturers. They will include: (i) support to the recruitment of

candidates to the Master’s degree program in SMRD; (ii) support to the Master’s program and

related courses convening and administration; (iii) support to internship program arrangements;

and (iv) support to research and conference organization. The administrative activities will

consist of the production and submission of four quarterly reports each year, an annual audit

report, at least one impact evaluation report, and a completion report at the end of the project.

Other administrative responsibilities will include project activities coordination,

implementation schedule elaboration, overseeing reporting activities, project auditing,

operating costs management, organization of Steering Committee’s activities, and monitoring

and evaluation. Provisions have been made in the project for supporting monitoring and

evaluation activities, including the determination of baseline data relating to the indicators

selected in the logical framework. UCT Graduate School of Business (GSB) in South Africa

will be responsible for the implementation of the strategic social engagement practice course.

4.1.2 Strategic guidance in the implementation of the project will be provided by a

Steering Committee. The Committee will be chaired by the Permanent Secretary of the

Ministry of Higher Education and comprised of the Ag. Vice Chancellor of UNZA and

representatives of the Ministry of Finance, the students in the program, the private mining

sector, the ESDA Consortium, and civil society. In addition to overseeing the project, the

Steering Committee will maintain clear linkages with the wider ESDA program, including

joint activities among the partner universities and supporting organizations, to ensure

alignment of the operation’s aspirations and activities with those of the ESDA program.

4.2 Financial Management (FM) and Disbursement Arrangements

4.2.1 Financial management (FM): Project finances will be managed within UNZA’s

existing FM system, under the overall responsibility of the Bursar as the Chief Accounting

Officer and custodian of all financial resources flowing to the University. The FM assessment

of UNZA carried out by the Bank (including review of accounting, treasury systems, internal

controls, reporting and external audit systems) concluded that its existing FM capacity meets

the Bank’s minimum requirements for ensuring that resources to be made available under the

project would be used for the intended purposes. Even though the University has no prior

experience with implementing a Bank-funded project, it has implemented projects funded by

other donors, including USAID, European universities, and the World Bank. UNZA operates

a computerized accounting system (based on the SAGE ERP system) for recording and

processing financial transactions for financial reporting purposes. No significant weaknesses

were identified except for a three-year backlog of annual audits which is currently being

addressed by a private audit firm with the involvement of the Office of the Auditor General

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(OAG) of Zambia. The overall FM risk is rated as Moderate. Detailed FM arrangements are

included as part of the Technical Annex B4.

4.2.2 Disbursement arrangements: All Bank funds to be disbursed under the project would

be handled in accordance with rules and procedures as set out in the Bank’s Disbursement

Handbook, as applicable. UNZA would open one (1) Special Account (SA) in foreign currency

and one (1) account in local currency (Kwacha) in a local commercial bank in Lusaka

acceptable to the fund, to facilitate payment of project expenditures (including tuition fees,

local travel and operating expenses). Direct payment by the project will be used for larger

expenditure items (including consultancy services and goods). The Fund may reimburse as

retroactive financing, an amount not exceeding United States Dollars Seventy Thousand (USD

70,000) to meet the costs incurred in August 2016 on account of student recruitment and

associated costs to facilitate project implementation. Detailed disbursement arrangements are

included as part of the Technical Annex B4.

4.2.3 Reporting and external audit: In accordance with the Bank’s financial reporting and

audit requirements, the project will be required to prepare and submit to the Bank an Interim

Quarterly Financial Progress Report (IQFPR) no later than forty-five (45) days after the end of

each calendar quarter. A separate annual audit report (including the audit management letter)

will be prepared for the project and audited by the OAG as per its mandate, and submitted to

the Bank no later than six (6) months after the end of each financial year throughout the project

implementation period. The audit of the project can be subcontracted (where necessary) to a

private audit firm to be procured through short lists (with the involvement of OAG), using the

Bank’s rules and procedures for procurement. If carried out by a private firm, the cost of audit

will be paid using project resources.

4.3 Procurement arrangements

4.3.1 Procurement of goods (including non-consultancy services), works and consulting

services will be carried out in accordance with the Bank’s procurement manual (BPM),

“Procurement Policy and Methodology for Bank Group Funded Operations”, dated October

2015, and following the provisions stated in the Financing Agreement. Specifically,

Procurement would be carried out as follows:

4.3.2 Borrower procurement system (BPS): Procurement shall be governed by Specific

Procurement Methods and Procedures (PMPs) under the Borrower Procurement System (BPS),

which comprise its Laws and Regulations as per the Public Procurement Act of 2008 and the

Public Procurement Regulations of 2011. Procurement shall be done using the national

Standard Solicitation Documents (SSDs) as appropriate. Small-value goods contracts, mainly

for mobile laboratories and data collection equipment, will be procured through limited bidding

(shopping). The main project activities, involving scholarships, dissertation and research

activities, and faculty staff capacity building, will follow the internal and administrative

systems and procedures of the University of Zambia.

4.3.3 Procurement risks and capacity assessment (PRCA): An assessment of procurement

risks at the country, sector, and project levels, and of procurement capacity at the Executing

Agency, were undertaken for the project, and the findings have informed the decisions on the

project’s procurement regime. Appropriate risks mitigation measures have been included in the

procurement PRCA action plan proposed in Annex B5.

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4.4 Monitoring

Where appropriate, the project will make use of existing M&E systems and procedures.

The performance-based indicators (baseline and targets) are shown in the log frame. Resources have been earmarked for strengthening the University’s M&E system, particularly

with regard to the collection and processing of relevant data to feed into quarterly progress

reports. The M&E system will also be the basis of a mid-term evaluation of the project after 18

months, to allow for a mid-term correction, if necessary. The Zambia Field Office will play a

key role in overall oversight and supervision of the implementation of the project.

Table 4.4.1: Monitoring schedule

Timeframe Milestone Monitoring process / feedback loop

November 2016 Negotiations

December2016 Board Approval

February 2017 Loan Signature

February 2017 Effectiveness

February 2017 Procurement of Teaching

Materials

Teaching equipment and materials

procured

March 2017 Launching Mission is organized with adequate skills

mix

March 2017 First Disbursement

March 2017 Students’ Recruitment Batch of students selected

September 2017 1st Supervision

January 2018 Annual Audit

March 2018 2nd Supervision

March 2018 Students’ Recruitment Batch of students selected

September 2018 3rd Supervision

January 2019 Annual Audit

March 2019 Mid Term Review

March 2019 Students’ Recruitment Batch of students selected

December 2019 Project Completed

February 2020 Project Completion Report PCR produced and processed

4.5 Governance

There are no critical risks foreseen related to governance. UNZA, UCT and University of

Stellenbosch are well-established formal universities with modern management and

governance systems. They all have organisational structures that include a Board or Council

with diverse representation. Although all three universities were established with the support

of the Zambian or South African government, they enjoy relatively high autonomy and

academic freedom. All of them use strategic and business planning as a critical tool for

sustainability.

4.6 Sustainability

The SMRD Master’s program supported by the project displays a number of features of

sustainability. First, the inter-institutional collaboration among UNZA, UCT and Stellenbosch

in the first year will lead to UNZA’s full ownership of the program in the second year, by which

time the six faculty members of the UNZA School of Mines will have undergone the training

necessary to offer a high-quality Master’s degree in SMRD without support from outside

institutions. Second, from a financial point of view, the program is not free of charge. Each

student is required to pay tuition fees amounting to USD 12,000 per year. Most of the target

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students are professionals working in and around the mining and minerals industry in different

capacities and can therefore afford the fees of the program. The project will provide financial

support to disadvantaged students, and particularly to female students, to enable them to

participate in the program. Scholarships covering up to 50 percent of costs will be awarded on

a competitive basis, and eligibility will be verified by home visits and documentation, to ensure

the most effective use of limited project resources. In addition, UNZA’s School of Mines will

generate institutional revenues from its partnership with the private sector through customized

training, consultancy activities, and research studies relating to SMRD. Further, as a joint

operation run collaboratively by UNZA and UCT within the framework of the UNU-ISP’s

ESDA program, it is expected that the SMRD Master’s degree program will continue to benefit

from technical and human resources from concerned international partners. Finally, the

program will continue to receive institutional support from these universities through the

human resources (faculty staff and administrative staff) and the logistics put at its disposal. All

these inputs will contribute to the sustainability of the program.

4.7 Risk management

The main risks are presented in the following table and in the logical framework.

Table 4.7.1: Risks and mitigating measure

Potential Risk Level Risk Mitigation

Insufficient staff qualification in

SMRD at UNZA

Low The lack of qualified and experienced faculty

staff in SMRD in Zambia will be offset by the

presence of highly qualified academic staff

from the two other participating universities

of the program (UCT and Stellenbosch.

Subsequently, this risk will be fully addressed

with the upgrading of UNZA staff supported

by the project)

Difficulty in recruiting female in

the program

Mediu

m

Sensitization campaign for enhancing

women’s interest in the program; motivating

financial support for women

Students might not complete the

courses

Low

Close guidance and supervision by the

academic staff

4.8. Knowledge building

Lessons learned from the design and implementation of previous projects in the sector,

recent Project Completion Reports (PCRs), and the latest portfolio review of the country

have informed the design of the project. Lessons include the following: (a) full involvement

and ownership of the project’s development by the beneficiaries is critical to ensure the

realization of projects results; (b) effective coordination of project activities is essential for

successful implementation of the operation; (c) monitoring and evaluation are critical for

managing risks and enhancing achievement of results. The features of the project that reflect

these lessons and strengthen the sustainability of the present operation include: (a) project

objectives that are in line with the country’s development strategies; (b) ownership of the

program by the academic and administrative staff of UNZA; (c) emphasis on improving the

quality of the existing UNZA/UCT SMRD program rather than creating a new one from

scratch; (d) signing of MoUs among partner universities to establish a functioning framework

for coordinating project activities; and (e) incorporating monitoring and evaluation as essential

project activities, and providing the resources to carry out M&E. In addition to the operational

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lessons integrated in the design of the project, the Master’s degree program has innovative

features that could be used to improve higher education projects elsewhere on the continent. In

particular, the program is designed as an academic joint venture involving three universities,

which have collaboratively designed it and jointly ensure course delivery and student

assessment. Not only does this feature help improve the quality and efficiency of the program,

but it also contributes to reinforcing regional integration in Southern Africa through academic

collaboration. The knowledge produced by the program, as well as by exchanges of experience

among project staff and concerned experts and organizations, will be made available through

documents and websites.

V. FINANCING INSTRUMENTS AND CONDITIONS

5.1 Financing instrument and conditions

The financing instrument proposed is an ADF Loan of UA 1.22 million to the Government of

Zambia.

5.2 Conditions associated with Bank’s intervention

Conditions precedent to Entry into force of the Loan Agreement: The entry into force of

the Loan Agreement shall be subject to the fulfillment by the Borrower of the provisions of

Section 12.01 of the General Conditions of the Fund Applicable to Loan Agreements and

Guarantee Agreements (Sovereign Entities).

Condition precedent to First Disbursement: The obligations of the Fund to make the first

disbursement of the Loan shall be conditional upon the entry into force of the Protocol of

Agreement and the fulfillment by the Borrower, in form and substance satisfactory to the fund,

of the following conditions:

(i) Evidence, in form and substance satisfactory to the Fund, of the opening of one (1)

Special Account to receive the proceeds of the Loan;

(ii) Evidence, in form and substance satisfactory to the Fund, of the opening of one (1)

account in foreign currency and one (1) account in local currency (Kwacha) at a local

commercial bank acceptable to the fund;

(iii) Evidence of the appointment of the Dean of School of Mines as a Project Coordinator to

manage the project activities (par. 4.1.1).

Other condition. The Borrower shall cause to be submitted:

Within six months of the first disbursement, evidence of the recruitment by UNZA of a Project

External Auditor whose qualifications and experience are acceptable to the Fund.

5.3 Compliance with Bank policies

This project complies with all applicable Bank policies, including (a) the Ten Year Strategy

(2013-2022); (b) the High Fives Agenda; (c) the Human Capital Strategy (2013-2017); (d) the

Regional Integration Policy Paper; (e) the ADB Group Regional Integration Policy and

Strategy, 2014-2023; and (f) the Revised Regional Operations Selection and Prioritization

Framework (2014).

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VI. RECOMMENDATION

Management recommends that the Board of Directors approve the proposed ADF Loan of UA

1.22 million to the Government of Zambia for the purposes and subject to the conditions

stipulated in this report.

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I

Appendix I.

Year Zambia Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2016 753 30,067 94,638 36,907Total Population (millions) 2016 16.7 1,214.4 3,010.9 1,407.8Urban Population (% of Total) 2016 39.7 40.1 41.6 80.6Population Density (per Km²) 2016 22.5 41.3 67.7 25.6GNI per Capita (US $) 2014 1 680 2 045 4 226 38 317Labor Force Participation *- Total (%) 2016 75.3 65.6 63.9 60.3Labor Force Participation **- Female (%) 2016 69.9 55.6 49.9 52.1Gender -Related Dev elopment Index Value 2007-2013 0.913 0.801 0.506 0.792Human Dev elop. Index (Rank among 187 countries) 2014 139 ... ... ...Popul. Liv ing Below $ 1.90 a Day (% of Population) 2008-2013 64.4 42.7 14.9 ...

Demographic Indicators

Population Grow th Rate - Total (%) 2016 3.1 2.5 1.9 0.4Population Grow th Rate - Urban (%) 2016 4.5 3.6 2.9 0.8Population < 15 y ears (%) 2016 45.7 40.9 28.0 17.2Population >= 65 y ears (%) 2016 2.9 3.5 6.6 16.6Dependency Ratio (%) 2016 94.6 79.9 52.9 51.2Sex Ratio (per 100 female) 2016 99.7 100.2 103.0 97.6Female Population 15-49 y ears (% of total population) 2016 23.2 24.0 25.7 22.8Life Ex pectancy at Birth - Total (y ears) 2016 61.5 61.5 66.2 79.4Life Ex pectancy at Birth - Female (y ears) 2016 63.6 63.0 68.0 82.4Crude Birth Rate (per 1,000) 2016 39.3 34.4 27.0 11.6Crude Death Rate (per 1,000) 2016 8.4 9.1 7.9 9.1Infant Mortality Rate (per 1,000) 2015 43.3 52.2 35.2 5.8Child Mortality Rate (per 1,000) 2015 64.0 75.5 47.3 6.8Total Fertility Rate (per w oman) 2016 5.2 4.5 3.5 1.8Maternal Mortality Rate (per 100,000) 2015 224.0 495.0 238.0 10.0Women Using Contraception (%) 2016 52.1 31.0 ... ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2004-2013 17.3 47.9 123.8 292.3Nurses and midw iv es (per 100,000 people) 2004-2013 78.4 135.4 220.0 859.8Births attended by Trained Health Personnel (%) 2010-2015 64.2 53.2 68.5 ...Access to Safe Water (% of Population) 2015 65.4 71.6 89.3 99.5Healthy life ex pectancy at birth (y ears) 2013 53.7 54.0 57 68.0Access to Sanitation (% of Population) 2015 43.9 39.4 61.2 99.4Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2014 12.4 3.8 ... ...Incidence of Tuberculosis (per 100,000) 2014 406.0 245.9 160.0 21.0Child Immunization Against Tuberculosis (%) 2014 95.0 84.1 90.0 ...Child Immunization Against Measles (%) 2014 85.0 76.0 83.5 93.7Underw eight Children (% of children under 5 y ears) 2010-2014 14.8 18.1 16.2 1.1Daily Calorie Supply per Capita 2011 1 930 2 621 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 2.8 2.6 3.0 7.7

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2010-2015 103.7 100.5 104.7 102.4 Primary School - Female 2010-2015 104.0 97.1 102.9 102.2 Secondary School - Total 2010-2015 ... 50.9 57.8 105.3 Secondary School - Female 2010-2015 ... 48.5 55.7 105.3Primary School Female Teaching Staff (% of Total) 2010-2015 53.1 47.6 50.6 82.2Adult literacy Rate - Total (%) 2010-2015 85.1 66.8 70.5 98.6Adult literacy Rate - Male (%) 2010-2015 89.7 74.3 77.3 98.9Adult literacy Rate - Female (%) 2010-2015 80.6 59.4 64.0 98.4Percentage of GDP Spent on Education 2010-2014 1.1 5.0 4.2 4.8

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2013 5.0 8.6 11.9 9.4Agricultural Land (as % of land area) 2013 31.9 43.2 43.4 30.0Forest (As % of Land Area) 2013 65.9 23.3 28.0 34.5Per Capita CO2 Emissions (metric tons) 2012 0.2 1.1 3.0 11.6

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.

Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+)

** Labor force participation rate, female (% of female population ages 15+)

COMPARATIVE SOCIO-ECONOMIC INDICATORS

Zambia

August 2016

0

20

40

60

80

100

120

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Infant Mortality Rate( Per 1000 )

Za mb ia Af r ica

0

500

1000

1500

2000

2500

20

00

20

05

20

08

20

09

20

10

20

11

20

12

20

13

20

14

GNI Per Capita US $

Za mb ia Af r ica

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Population Growth Rate (%)

Zam bi a Af r ica

01020304050607080

20

00

20

05

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Life Expectancy at Birth (years)

Za mb ia Af r ica

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Appendix II. Table of ADB’s Ongoing Portfolio in Zambia

Project Name

Approved

Amt. (UA)

Disbursed

Amt. (UA)

Disbursed

Ratio (%)

Agriculture

MIC TAF GRANT YOUTH IN AGRIBUSINESS AND

AGRICULTURE COMMODIT 790,000.00 0.00 0.00

MIC TAF GRANT LUSWISHI FARM BLOCK 720,000.00 0.00 0.00

LIVESTOCK INFRASTRUCTURE SUPPORT PROJECT

(LISP) 12,000,000.00 2,577,930.20 21.48

GAFSP-AGRICULTURE PRODUCTIVITY AND MARKET

ENHANCEMENT PROJEC 22,230,476.90 1,716,018.62 7.72

CASHEW INFRASTRUCTURE DEVELOPMENT

PROJECT (CIDP) 32,145,612.48 535,903.08 1.67

LAKE TANGANYIKA DEVELOPMENT PROJ 16,063,519.73 1,106,953.20 6.89

LAKE TANGANYIKA DEVELOPMENT PROJ 5,000,428.61 0.00 0.00

Environment 88,950,037.72 5,936,805.10

STRENGTHENING CLIMATE RESILIENCE IN THE

KAFUE BASIN 12,501,071.52 144,929.19 1.16

STRENGTHENING CLIMATE RESILIENCE IN THE

KAFUE BASIN 14,644,112.35 1,985,640.10 13.56

Finance 27,145,183.87

LINE OF CREDIT TO FRB SUBSIDIARY, FIRST

NATIONAL BANK OF ZAM 31,408,406.43 31,408,406.43 100.00

Power 31,408,406.43 31,408,406.43

POWER TRANSMISSION PROJECT 30,000,000.00 20,071,709.91 66.91

POWER TRANSMISSION PROJECT 6,400,000.00 4,295,126.53 67.11

KARIBA DAM REHABILITATION 25,200,000.00 0.00 0.00

ITEZHI-TEZHI HYDROPOWER PROJECT 25,002,143.04 24,714,071.55 98.85

Social 86,602,143.04 49,080,907.99

SKILLS DEVELOPMENT AND ENTREPRENEURSHIP

PROJECT - SUPPORTIN 21,430,408.32 71,434.69 0.33

SUPPORT FOR SCIENCE AND TECHNOLOGY

EDUCATION PROJECT (SSTEP/ 22,220,000.00 2,371,342.54 10.67

Transport 43,650,408.32 2,442,777.23

CHINSALI - NAKONDE ROAD REHABILITATION

PROJECT (NORTH-SOUTH 137,868,960.20 23,837.14 0.02

CHINSALI - NAKONDE ROAD REHABILITATION

PROJECT (NORTH-SOUTH 35,717,347.20 0.00 0.00

BOTSWANA/ZAMBIA-KAZUNGULA BRIDGE PROJECT 51,000,000.00 1,032,898.65 2.03

Water Supply & Sanitation 224,586,307.40 1,056,735.79

MULTIPURPOSE SMALL DAMS 761,828.39 228,548.52 30.00

TRANSFORMING RURAL LIVELIHOODS IN WESTERN

ZAMBIA - NATIONAL 11,072,377.63 284,809.29 2.57

TRANSFORMING RURAL LIVELIHOODS IN WESTERN

ZAMBIA - NATIONAL 2,806,736.17 655,678.44 23.36

LUSAKA SANITATION PROGRAM 35,717,347.20 499,526.39 1.40

50,358,289.39 1,668,562.64

Grand Total 552,700,776.17 91,594,195.18

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III

Appendix III. Map of Zambia

NOTE: This map is provided by the African Development Bank Group staff exclusively for the use of

the readers of the report to which it is attached. The names used and the borders shown do not imply on

the part of the Bank and its members any judgment concerning the legal status of a territory nor any

approval or acceptance of these borders.

Kabwe Urban

Lufwanyama

Kaputa

Kawambwa

Mporokoso

Chinsali

Mwense

Luwingu

Chama

Chilubi

Samfya

Mwinilunga

Mpika

Solwezi

Lundazi

Serenje

1

3

2

Kabompo

5

7

Lukulu

Katete

Chadiza

Kaoma

Kalabo

Mumbwa Mongu

Luangwa

Mazabuka

Sesheke

Choma

Sinazongwe

Livingstone

Shang'ombo

Senanga

Zambezi

Chavuma

Kazungula

Kalomo

Kafue

Chongwe Lusaka

Chibombo

Mkushi

Kapiri Mposhi

Mpongwe

Nyimba

Petauke

Mambwe

Chipata

Isoka

Nakonde

Kasama

Mbala

Mpulungu

Nchelenge

Mansa

Milenge

Gwembe

Siavonga

Namwala

Itezi-Tezhi

Monze

Kasempa

Mufumbwe

1. Chililabombwe

2. Mufulira

3. Chingola

4. Kalulushi

5. Kitwe

6. Ndola Urban

7. Luanshya

4

Chienge

Kabwe

6 Masaiti