Language: English Original: English

PROJECT: Support to a Network of African Institutions of Science and Technology Project

COUNTRY: ECOWAS Region

PROJECT APPRAISAL REPORT

February 08, 2009

Appraisal Team

Team Leader: : Erinna Dia, Education Analyst, OSHD.2

Team Members: Frank Boahene, Education Analyst, OSHD.2 Aboubacar Magassouba, Procurement Specialist, OSHD.0 Corbin Michel Guédégbé, Education Analyst, OSHD.2 André Komenan, Consultant, OSHD.2

Division Manager: Thomas Hurley, OSHD.2 (Acting) Sector Director: Thomas Hurley, OSHD Regional Director: J. Kpourou-Litsé, ORWA

Peer Reviewers

First Review Baboucarr Sarr, Chief Education Specialist, OSHD.2 Abdi Younis, Principal Education Specialist,OSHD.2 Yeshiareg Dejene, Senior Gender Specialist, OSHD.0 Marcelin Ndong Ntah, Principal Policy Economist,ORPC.2 Solomane Koné, Chief Country Economist, ORWA Second Review Serge Nguessan, Chief Procurement Specialist, OSGE.1 Zacou Amadou, Principal Power Engineer, OINF.3 Maimouna Diop Ly, Senior Health Analyst, OSHD.3 Ann Sow Dao, Senior Education Analyst, OSHD.2

TABLE OF CONTENTS I – STRATEGIC THRUST & RATIONALE............................................................................1

1.1. Project linkages with regional strategy and objectives ...................................................1 1.2. Rationale for Bank’s involvement ..................................................................................2 1.3. Donor coordination .........................................................................................................3

II – PROJECT DESCRIPTION.................................................................................................4 2.1. Project objective and components ..................................................................................4 2.2. Technical solution retained and other alternatives explored...........................................6 2.3. Project type .....................................................................................................................6 2.4. Project cost and financing arrangements ........................................................................7 2.5. Project’s target area and population................................................................................8 2.6. Participatory process for identification, design and implementation..............................8 2.7. Bank Group experience, lessons reflected in project design ..........................................9 2.8. Key performance indicators.......................................................................................9

III – PROJECT FEASIBILITY .................................................................................................9 3.1. Economic and financial performance ...........................................................................10 3.2. Environmental and Social impacts................................................................................10

IV – IMPLEMENTATION......................................................................................................12 4.1. Implementation arrangements.......................................................................................12 4.2. Monitoring ....................................................................................................................13 4.3. Governance ...................................................................................................................14 4.4. Sustainability.................................................................................................................14 4.5. Risk management..........................................................................................................15 4.6. Knowledge Building .....................................................................................................15

V – LEGAL INSTRUMENTS AND AUTHORITY...............................................................16 5.1. Legal Instrument ...........................................................................................................16 5.2. Conditions associated with Bank’s intervention...........................................................15 5.3. Compliance with Bank Policies ....................................................................................15

VI – RECOMMENDATION...................................................................................................16 Appendix I. Map of Project Area...............................................................................................1

Currency Equivalents As of January 2009

1 UA = 1.54027 USD

Fiscal Year January 1st – December 31st

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

Acronyms and Abbreviations ADB African Development Bank ADF African Development Fund AIST African Institute of Science and Technology AUST African University of Science and Technology AVU African Virtual University CSP Country Strategy Paper ECOWAS Economic Community of West African States 2iE Institut International de l’Ingénierie de l’Eau et Environnement HEST Higher Education, Science and Technology IEA Impact and Environmental Assessment MDG Millennium Development Goal NEPAD New Partnership for African Development NMI Nelson Mandela Institution OECD Organization for Economic Cooperation and Development PPP Public Private Partnership PSC Project Steering Committee RMC Regional Member Country S&T Science and Technology WAEMU West African Economic and Monetary Union

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Grant Information

Client’s information RECIPIENT: ECOWAS EXECUTING AGENCY: African University of Science and

Technology (AUST) International Institute for Water and

Environment Engineering (2iE) ECOWAS Financing plan

Source Amount (UA) Instrument ADF

12.00 Million

Grant (RPG)

TOTAL COST 12.00 Million

ADB’s key financing information

Grant currency

UA

Interest type* N/A

*if applicable Timeframe - Main Milestones (expected)

Concept Note approval

January 7, 2009

Project approval March 18, 2009 Effectiveness May 2009 Completion June 2012 Last Disbursement June 2013 Last repayment N/A

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Project Summary Project overview: The Support to a Network of African Institutions of Science and Technology Project is based on the premise that it is cost-effective to promote and enhance linkages among African S&T institutions to pool resources through networks established as poles of excellence, and build on the strengths of the respective institutions. As such, the Project seeks to provide a regional consolidated response to the need for high-level expertise in science and engineering in Sub-Saharan Africa (SSA) by expanding equitable access and improving the quality and relevance of higher education and research through the enhancement of a pole of excellence in science and technology (S&T) in the Economic Community of West African States (ECOWAS) region. Indeed, it is increasingly recognized that the availability of a critical mass of water, energy and environmental scientists and engineers are essential to achieving the Millennium Development Goals (MDGs) in health, education and economic growth, hence the crucial need for high quality and relevant training programs. By building skills and strengthening knowledge, tertiary institutions can provide countries with the capacity to generate growth and accelerate economic development. Developed at the request of the ECOWAS Commission, the Project, while increasing access to quality training, will facilitate greater synergy among S&T institutions, as well as mobility of students, faculty, and even professionals among the countries of the region, all of these goals being, key objectives of the Commission. The African University of Science and Technology (AUST) based in Abuja and the International Institute for Water and Environmental Engineering (2iE) in Ouagadougou, two centres of excellence in the Region, have been identified as key partners for that purpose. The proposed operation thus seeks to promote (i) free movement of high level expertise between countries of the ECOWAS region through harmonization of higher education systems, degrees, and programs, and (ii) quality research and training in S&T by facilitating the establishment of a regional pole of excellence in areas essential for local development and growth such as water and environmental management, computer engineering, mathematical modelling, and oil and petroleum engineering, while inducing female participation in higher education, science and technology (HEST) and engineering. These priority sectors have guided the choice of the two institutions previously mentioned, AUST for computer sciences, mathematical modelling, and oil and petroleum engineering, and 2iE for water and environmental science and engineering. Project outcomes include: (i) increased access to quality engineering and science education; (ii) enhanced relevance through linkages with the productive sector; (iii) harmonized certification of academic degrees in ECOWAS region; (iv) strengthened public-private partnerships (PPP) in the provision of quality HEST training; and (v) enlarged regional and institutional networking in S&T. The Project will be implemented over a 3-year period at a cost of UA12.00 million and will benefit all countries in the ECOWAS region and beyond. Needs Assessment: Training capacity at the tertiary education level remains limited in Africa, usually because of the countries’ inability to mobilize resources to establish proper institutions of higher learning. This is particularly true in the fields of S&T, which require particularly costly investments. Consequently, many engineers still have to be sent abroad for training, with the added risk that they do not come back, causing an acute lack of professionals able to tackle the development challenges facing Africa. In a world in which economies are evolving, climates are changing, security is threatened and health care systems are under increasing pressure, Africa needs to maximize the use of its human resources to

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improve its prosperity. This implies heavy investments in institutions of excellence on the continent, with greater cost-efficiency in the long-run. However, most countries in the ECOWAS region cannot afford the cost of infrastructure and equipment required to establish high quality institutions of S&T and the Bank cannot finance the cost of such institutions in each of the RMCs of the region, hence the importance of a regional pole of excellence which will provide accessible and non-excludable training opportunities to qualified students of the ECOWAS region. In an effort to provide concrete solutions to contribute to skills enhancement for growth in Africa, the Nelson Mandela Institution (NMI) took the initiative to promote and create a pole of excellence in S&T to train high quality African scientists and engineers to meet the demand of Africa’s private sector needs and realities, so as to bring concrete solutions to the numerous challenges facing SSA. The NMI pole consists of thematic networks built around four institutions: (i) the African University of Science and Technology (AUST) in Abuja, (ii) the School of Life Sciences in Arusha, (iii) the Gulf of Guinea Institute (G2I) on offshore petroleum engineering in Abuja, and (iv) the International Institute for Water and Environmental Engineering (2IE) in Ouagadougou. The proposed project will facilitate the strengthening and the establishment of greater collaboration for two institutions in the network, namely the AUST and the 2IE. Bank’s Added Value: The promotion of a pole consisting of thematic centres of excellence, in this case, AUST for mathematics, computing, and oil and petroleum engineering and 2IE for water and environmental engineering, is a unique approach to pooling the resources of academia, governments and industry to improve Africa’s quality of life and make its economy stronger. It brings an added value to the financial support the two institutions already receive as separate entities, as it will facilitate regional academic exchange and mobility. The Bank will thus be able to build on the pioneering role it has played so far in building capacity and supporting regional higher education and research institutions such as the African Virtual University Project (AVU), the Support to Higher Education in West African Economic and Monetary Union (WAEMU) Countries Project, the Open and Distance Learning (ODL) for the SADC region, and the Forum for Agricultural Research in Africa Project. In line with the Bank’s Education Sector Policy and the recently approved HEST Strategy seeking to help RMCs revitalize their institutions of higher education by strengthening national and regional centres of excellence, developing infrastructure and linking HEST to the productive sectors of the economy, lessons from these operations have not only been incorporated in Project design, but will be used to test the new model proposed inherent in the creation of regional poles of excellence.. Furthermore, the proposed networks will adopt an entrepreneurial approach, already implemented in other education projects such as the Support to Science and Technology Skills Development Project in Rwanda, to translating innovation and newly generated knowledge into natural, social and health sciences, resulting in a stronger, healthier and more prosperous Africa. Knowledge Management: The Project is founded on the pressing need to develop highly skilled competencies in science and engineering, which involves building infrastructure for HEST and supporting national and regional centres of excellence. Its implementation will provide the basis for further expansion of poles of excellence built around thematic centres of excellence, which will have the added advantage of addressing the issue of the costly investments required for Africa’s technological catch-up and the production of a critical mass of skilled labour to unlock the potential to increase productivity and economic growth. Once

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tested, this model could thus be used by other donors and other Bank-financed Projects to facilitate the expansion of networks in Sub-Saharan Africa. Lessons drawn from Project implementation will also be used to: (i) reinforce collaboration between institutions of higher learning in Sub-Saharan Africa, especially in terms of curriculum development and teacher training to reduce identified skills gaps; (ii) enhance female access to scientific and technological fields at the tertiary level and their retention until graduation; and (iii) further improve the well-being of populations in the region by providing relevant and innovative technologies and skills development programs to communities. All acquired knowledge will be disseminated at national and regional levels through seminars and discussion fora. Within the Bank, the Human Development Department will collaborate with other Bank departments and units to synthesize and share emerging good practices in print and electronic formats in the Bank.

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Results-based framework

Hierarchy of Objectives Expected Results and Timeframe

Reach (Target Population)

Performance Indicators

Indicative Targets Timeframe

(Existence of baseline?) Assumptions/Risks

Goal To provide a regional consolidated response to the needs for highly-qualified personnel in science and engineering in ECOWAS region.

By 2015: RMCs benefit from improved capacity of regional centres of excellence for training in science, engineering and research and innovation to meet their development needs.

ECOWAS region

Number of networks in sciences and technology institutions established and reinforced. Sources: -UNIDO, ECOWAS, WB, AfDB, UNDP

1 by 2012

Risk: (Medium) -Low country/regional interest for training programs Mitigation strategy: -Aggressive campaigns and promotion of centres of excellence

By 2012: The capacity of AUST/2iE to train and board students has significantly increased.

Number of students trained in institutions

AUST: from 50 in 2009 to 510 student by 2012

2iE: from 700 in 2009 to 1000 by 2012

Number and quality of research and publications produced.

Increase publications in recognized international journals from 6 to 15 per year

The quality of training, research and publication has improved by global standards.

Number of scientific events organized

Increase from 4 to 10 conferences/seminars/scientific workshops per year

Project Purpose To increase the number and improve the quality of qualified science and engineering graduates by facilitating the establishment/ strengthening of poles of excellence.

Private sector is an active partner in science and innovation efforts.

AUST 2iE ECOWAS Students Faculty

Number of initiatives involving private sector participation: Number of training activities for the Private Sector Sources: Project studies, Regional statistics, WB, UNESCO, UNIDO, ADR, UNDP

Two per year per institution

Risk (Medium) Lack of African

ownership Inadequate private

sector support Inability to secure

needed funds Brain drain

Mitigation strategy: Private sector

involvement in governing board, take part in curriculum design & offered adjunct positions.

Faculty from existing universities will be offered fellowships and other opportunities for involvement

Intensified resource mobilization efforts.

Establishment of Endowment Fund.

- Proportion of bilingual modules

- 2iE: 15% (from 5%)

Increased number of joint programs undertaken and coordinated within pole

- Increase from 1 to 4 conferences/seminars/scientific workshops per year

Component 1 2iE: - Establishment of a bilingual program; - Support to open and distance education program in water and environmental engineering; - Involvement of African Diaspora in academic/ research activities; - Organisation and participation in scientific seminars/conferences; - Research assistance for doctoral students; - International and regional exchange program. For AUST: - Faculty exchange program in maths and physics, computer science and petroleum engineering; - Upgrading of computing capacity and Internet

Number of studies & publications.

Increase publications in recognized international journals from 6 to 15 per year

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Hierarchy of Objectives Expected Results and Timeframe

Reach (Target Population)

Performance Indicators

Indicative Targets Timeframe

(Existence of baseline?) Assumptions/Risks

Superstructure. AUST and 2iE (joint implementation): - Experience sharing and competences pooling; - Joint lobbying and fund raising missions; - Use of female students to advocate for greater female participation in science and technology at secondary school level. ECOWAS: Development of framework for higher education certificate equivalence in ECOWAS region

Framework for higher education equivalence of degrees and certificates in ECOWAS region

Joint ECOWAS framework available.

From 0 to 1 by 2012

Increased capacity in boarding, classrooms and laboratories space.

-AUST: From 50 to 500 students by 2012; -2iE: From 700 to 2500 students by 2012

Risks: (Low) - Inability to secure needed funds - Delays in construction, procurement and recruitment - Difficulties to recruit qualified students and faculty Mitigation strategies: - Simplified and advanced procurement - Availability and commitment of qualified African Diaspora faculty - ECOWAS involvement in student recruitment campaigns.

Increased number of students in Bachelor, Masters and Doctoral programs.

150 additional students in 2iE and 40 students in AUST

Qualified staff needs fulfilled

100% by 2012

Activities Component 2 For 2iE: -Construction/rehabilitation and equipment of pedagogical and research facilities; - Scholarships for greater gender and geographical equity; - Strengthening of newly developed Master’s Program; - Strengthening of partnerships with private sector and employers through development of continuing education and technology transfer. For AUST: - Construction and equipment of pedagogical, research and residential facilities; - Scholarships for greater gender and geographical equity; - Equipment of library with scientific books and journals

By 2012 Student intake expanded; Quality of training and research improved; Linkages with productive sectors strengthened.

-Centres Students/faculty -Productive sectors -Diaspora - ECOWAS

Number of partnerships established with private sector

- AUST: 6 by 2012 - 2iE: 6 by 2012

Component 3 -Project coordination

Inputs ADB Grant, Technical Assistance, equipment & materials, staff

Risks (Low) Inability to secure other needed funds Mitigation strategies: sustained advocacy with private sector, African Governments and donor community

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Project Timeframe

ID Task Name Start Finish

1 PROJECT CYCLE INFORMATION Wed 18/03/09 Mon 08/10/122 Grant approval Wed 18/03/09 Wed 18/03/093 General Procurement Notice Thu 19/03/09 Wed 01/04/094 Grant agreement signing Thu 23/04/09 Thu 23/04/095 Grant effectiveness Thu 23/04/09 Thu 23/04/096 Project launch workshop Mon 01/06/09 Wed 10/06/097 Supervision missions Tue 01/12/09 Wed 14/12/1113 Mid-term review misson Tue 21/12/10 Mon 03/01/1114 Completion report mission Tue 25/09/12 Mon 08/10/1215 COMPONENT 1 Mon 15/06/09 Wed 27/06/1216 Civil Works AUST Fri 19/06/09 Mon 16/05/1117 Arch and tech studies & bidding docs Fri 19/06/09 Mon 07/12/0918 Approval of bidding documents Tue 22/12/09 Mon 11/01/1019 Tendering and contract award Tue 26/01/10 Mon 19/04/1020 Construction works Tue 18/05/10 Mon 16/05/1121 Equipment AUST Thu 17/06/10 Wed 27/07/1122 Approval of bidding documents Thu 17/06/10 Wed 14/07/1023 Tendering and contract award Thu 05/08/10 Wed 08/12/1024 Commissioning Thu 26/05/11 Wed 27/07/1125 Civil works 2iE Fri 19/06/09 Mon 16/05/1126 Arch and tech studies & bidding docs Fri 19/06/09 Mon 07/12/0927 Approval of bidding docs Tue 22/12/09 Mon 11/01/1028 Tendering and contract award Tue 26/01/10 Mon 19/04/1029 Construction works Tue 18/05/10 Mon 16/05/1130 Equipment 2iE Thu 17/06/10 Wed 27/07/1131 Approval of bidding documents Thu 17/06/10 Wed 14/07/1032 Tendering and contract award Thu 05/08/10 Wed 08/12/1033 Commissioning Thu 26/05/11 Wed 27/07/1134 Recruitment of visiting professors Mon 15/06/09 Fri 22/06/1235 Organization of scientific conferences Tue 15/06/10 Mon 25/06/1239 Support to doctoral student Thu 10/09/09 Wed 27/06/1240 COMPONENT 2 Mon 15/06/09 Wed 27/06/1241 Recruitment of visiting professors Mon 15/06/09 Fri 22/06/1242 Financial aid program Thu 10/09/09 Wed 27/06/1243 2iE-AUST partnership Thu 10/09/09 Wed 27/06/1244 Equivalency of certificates Tue 23/06/09 Wed 29/06/1145 COMPONENT 3 Thu 02/07/09 Wed 21/08/1346 Project coordination and Monitoring Thu 02/07/09 Wed 21/08/1347 Annual audit missions Mon 15/03/10 Wed 04/04/12

H1 '09 H2 '09 H1 '10 H2 '10 H1 '11 H2 '11 H1 '12 H2 '122009 2010 2011 2012

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REPORT AND RECOMMENDATION OF THE MANAGEMENT OF THE ADB GROUP TO THE BOARD OF DIRECTORS ON A PROPOSED GRANT TO ECOWAS TO

SUPPORT A NETWORK OF AFRICAN INSTITUTIONS OF SCIENCE AND TECHNOLOGY (AUST/2IE)

I – STRATEGIC THRUST & RATIONALE 1.1. Project linkages with regional strategy and objectives 1.1.1 The proposed operation has been elaborated as a response to priorities identified in the regional policies, strategies and action plans, including the: (i) AU/NEPAD S&T Consolidated Plan of Action (CPA), which articulates Africa’s common objectives and commitment to develop and use science for socio-economic transformation and integration into the world economy and promote the development of an African system of research and technological innovation through networks of centres of excellence and capacity building programs; (ii) Second Decade of Education for Africa (2006-2015) of the African Union, which highlights the promotion of research and knowledge production, the development of regional and continental quality assurance frameworks to facilitate mobility of students and staff, and the increased involvement of universities in development efforts, including linkages to lower levels of education; (iii) Article 27 of the 1993 ECOWAS Revised Treaty that provides for Member States to ensure proper application of S&T to the development of agriculture, transport and communications, industry, health and hygiene, energy, education and manpower and the conservation of the environment; (iv) ECOWAS’ 2003 Regional Protocol on Education and the Convention on the Recognition and the equivalence of Degrees, Diplomas, and other qualifications; (v) ECOWAS Education and S&T programs (see Annex 1); and (vi) ECOWAS’ 1982 Treaty for the free movement of goods and persons within the sub-region. This includes the strengthening of existing scientific research institutions and preparing and implementing joint scientific research and technological development programmes. The Project is also consistent with the July 2003 agreement establishing a framework for cooperation between the Bank and ECOWAS in the priority areas of capacity-building and human resource development. 1.1.2 By facilitating the establishment, by the ECOWAS Commission, of a regional framework for the equivalence of certificates, as well as greater collaboration between AUST and the 2IE, the Project will respond to one of the Commission’s main mandates, namely greater synergy among S&T institutions, as well as mobility of students, faculty, and even professionals among the countries of the region. The regional pole of excellence that will be supported in the case of the proposed operation is the African Institute of Science and Technology (AIST) network, initiated by the Nelson Mandela Institution (NMI) to promote a pole of excellence in S&T to train high quality African scientists and engineers to meet the demand of Africa’s private sector needs and realities. The NMI pole consists of thematic networks currently built around four institutions: (i) the African University of Science and Technology (AUST) in Abuja; (ii) the AIST in Arusha; (iii) the Gulf of Guinea Gas Institute (G2I) on natural gas and petroleum engineering in Abuja; and (iv) the International Institute for Water and Environmental Engineering (2iE) in Ouagadougou1. The choice of AUST and 1 Partnerships with other institutions have been / are being developed. The African Institute for Mathematical Sciences in South Africa, the Abobo Adjamé University in Côte d’Ivoire, the Kwame Nkrumah National

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2iE as first institutions of this network to be supported by the Bank was made because these two institutions address critical needs for high-level African expertise in the areas of water, sanitation, environment, and energy, which are priorities for the Bank. In addition, these two institutions represent a new breed of regional higher education institutions serving the governments and the private sector to provide world-class education, research, and services; these institutions are now built on governance principles that include a role for all partners from the public, non-governmental, and private sector and aim at medium-term financial sustainability based on revenues from their main services: tuition, research and paid services, and open education. 1.1.3 The project is also in line with Bank policies and strategies, as supported in the : (i) Higher Education, Science and Technology (HEST) strategy (2008), which includes the development of centres of excellences as one of its main pillars; (ii) Medium-Term Bank Group Strategy 2008-2012, which calls for focus on higher education, among others, to allow the global recognition of the institution as “a preferred partner in Africa, providing high-impact, well-focused development assistance and solutions”; (iii) 2007 High Level Panel on the Bank’s future recommending Bank investments in tertiary education, especially S&T to reduce the knowledge and technology gap; and (iv) 2005-2009 Country Strategy Papers (CSPs) for Burkina Faso and Nigeria where human resources development and improvement of living conditions have been retained as priorities for Bank intervention. By training high level, skilled personnel in priority areas, the project contributes to national and regional economic growth and diversification, as well as improved livelihoods through better management of environmental, water and energy resources. 1.2. Rationale for Bank’s involvement 1.2.1 Bank support to this regional initiative is grounded on the recognition that higher education and skills development are central to economic growth and sustainable development, hence the institution’s choice to support HEST, as highlighted in its strategy. However, given the magnitude of the resources needed, efficient support in this area requires the establishment of poles of excellence composed of networks of HEST institutions in different countries instead of reproducing the same institutions in each of the countries of a region. These networks would be built around different themes and the recognized strength of each participating institution. Such a unique approach to pooling the resources of academia, governments, and industry is required to generate the critical mass of scientists and engineers necessary to turn Africa from a mere consumer to a competitive contributor to knowledge. 1.2.2 In line with its strategic direction and given ongoing efforts to strengthen national HEST institutions, the proposed Bank support will play a key catalytic role by building a fruitful partnership between two regional centres of higher learning in West Africa (one specializing in Computational Science, Basic Science, and Natural Gas and Petroleum Engineering based in Nigeria - AUST, and the other in Water and Environmental Sciences and Engineering, based in Burkina Faso – 2iE), so as to foster collaboration, harmonization of programs and standards, knowledge and innovation sharing, contributing to poverty alleviation and economic growth. Regional integration and cooperation between institutions will be strengthened and student mobility between Anglophone and Francophone countries facilitated by the creation of bilingual programs and the harmonization of higher education

University of S&T, the Physics and Mathematics Institute of Benin. and the University of Dar es Salaam are already partners of AUST and/or 2iE. te of Benin. For 2iE,

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degrees. In other words, the Project will contribute to: (i) strengthening inter-university networking in teaching and research; and (iii) building stronger university-industry and public private partnerships (PPP) to ensure relevance of science and engineering training to economic production and industrialization priorities; and (iii) improving the state and quality of infrastructure and curriculum for science and engineering training; . In addition, the Project will mobilize high level African expertise in universities, research institutes and the private sector in the Diaspora, who have agreed not only to devote time to teaching and assisting in the development of African centres of higher learning, but also facilitate linkages between African and their own institutions to turn the African brain drain into a brain gain. Hence, far from crowding out other institutions of higher learning in the region, the Project will instead encourage them to improve the quality of their product so as to join the pole of excellence hereby created. Finally, the project will realize several key objectives of the ECOWAS Commission – promotion of S&T, enhancement of higher education, harmonization of degrees, and subsequent free movement of skilled people in the region. 1.2.3 The support of the Bank will thus assist in bringing together two institutions of a network that will produce concerted training with diplomas recognized by the institutions and accreditation bodies. Indeed, during Project preparation, the AUST and 2iE have developed a Memorandum of Understanding (MOU) accompanied by a three-year joint program document to promote students and teachers’ mobility and share experience and expertise in the areas of Governance, project management, computing, administrative and financial management. Therefore, while strengthening the quality of existing training with science and technology equipment and widening access through the building of teaching and research facilities, the Bank resources will focus on (i) developing the linkages that are of paramount importance in a network of training and research institutions, including the support for faculty exchanges, bilingual training, collaborative research and exchange of students, and (ii) providing, through ECOWAS Commission’s harmonization and regulatory role, a conducive environment for facilitating these linkages. Hence, Bank support will add value to the resources mobilized from other donors or RMCs by the two institutions taken individually to support infrastructure development, state of the art scientific equipment and scholarships for students. For instance, the 2iE has received support from the 14 French speaking countries for which it had been established to serve. In addition, both institutions have received strong support from the Governments of Burkina Faso and Nigeria in the form of funds and land. ECOWAS has recognized 2iE and AUST, as Centers of Excellence each in their training areas, as highlighted in the Memorandum of Understanding signed between the Commission and the two institutions on June 12, 2008. 1.3. Donor coordination 1.3.1 Comments on Donor coordination: Project design has been carried out in close cooperation with other donors who have joined efforts to support either (or both) institutions. For 2iE, this includes a: (i) USD 5 million grant from the Government of Burkina Faso financed by an IDA credit in order to increase access capacity, improve quality and strengthen management capacity at 2iE2; (ii) French Development Agency (Agence Française de Développement) direct lending to 2iE of Euro 4.7 million to increase academic and residential capacity and launch a student loan scheme; (iii) 6.00 million Euro support by the French Ministry of Foreign Affairs to the first development phase of 2iE and current financing of several activities mainly on the infrastructure and quality components; (iv) 2 Loan proceeds passed on to 2iE as a grant.

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US$2.2 million grant of the Swiss Convention (EPFL) to improve the quality of the institute; and (v) Euro 1.99 million Bank grant through the African Water Facility to strengthen water and environmental engineering in fragile states. Other donors such as the Agence Universitaire de la Francophonie (AUF), the WAEMU, the European Union and Canada through the International Development Research Centre (IDRC) also support the 2iE. To facilitate its establishment, AUST has benefited from: (i) World Bank grants of US$2.00 million and US$500,000; (ii) a Federal Capital Territory cash contribution of US$2.00 million and land valued at 40.00 million USD; (iii) US$25 million from the Petroleum Technology Fund; and (iv) approximately US$1.5 million from the Nigerian private sector. 1.3.2 Increased support to HEST is thus a reflection of donor concerted acknowledgement of the need to revitalize those sectors for Africa’s increased productivity and competitiveness. The proposed Bank-financed operation, by facilitating the establishment of poles of excellence and the creation of regional networks of institutions, will set the stage for greater coordination in the promotion of research and S&T training in Africa..

II – PROJECT DESCRIPTION 2.1. Project objective and components The Project’s objective is to increase the number and improve the quality of qualified science and engineering graduates in the ECOWAS region in order to provide a regional consolidated response to the needs for highly qualified personnel in science and engineering in the ECOWAS region. In that respect, ECOWAS will have a key role to play in terms of facilitating harmonization and establishment of common regional standards in higher education by developing a framework for higher education certificate equivalence in the ECOWAS region. In light with its 2003 Regional Protocol on Education and Convention on the Recognition and the equivalence of Degrees, Diplomas and other qualifications which set out priority objectives in education, S&T especially, the ECOWAS Commission has recruited a consultant to carry out feasibility study on Equivalence of certificates. To respond to the ECOWAS Commission’s main objective to harmonise criteria for admission into institutions of higher learning, research institutions, and vocational training centres; harmonise certificates; and progressively harmonise the educational and training systems in its Member States, Project funds have been allocated towards the development and implementation of required framework. This activity will also facilitate the role of the ECOWAS Commission in promoting the network within its member countries. Table 2.1: Project components

No Component name

Est. cost (UA)

Component description

1 Facilitating regional and institutional networking

3.73 Million

This component will facilitate a strengthening of partnerships and institutional linkages through: For the ECOWAS Commission:

Development of framework for higher education certificate equivalence in ECOWAS region and implementation of ECOWAS Convention on Equivalence of Certificates (mostly involves recruitment of consultants and ad hoc and validation meetings) For AUST and 2iE (joint implementation): o Experience sharing and competences pooling; o Joint lobbying and fund raising missions;

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o Use of female students to advocate for greater female participation in science and technology at secondary school level.

For 2iE: o Establishment of a bilingual program; o Support to an open and distance education program in water and

environmental engineering; o Involvement of African Diaspora in academic/ research activities; o Organisation and participation in scientific seminars/conferences; o Research assistance for doctoral students; and o International and regional exchange program.

For AUST: o Faculty exchange program in maths, physics, computer science and

petroleum engineering; and o Upgrading of computing capacity and Internet Superstructure.

2 Improving relevance of training and research

8.06 Million

This component will support: (i) the expansion of student intake; (ii) the improvement of quality of training and research; and (iii) the strengthening of linkages with productive sectors. Specific activities include: For 2iE: o Construction/rehabilitation and equipment of pedagogical and

research facilities; o Scholarships for greater gender and geographical equity; o Strengthening of newly developed Master’s Program; and o Strengthening of partnerships with private sector and employers

through development of continuing education and technology transfer.

For AUST: o Construction and equipment of pedagogical, research and

residential facilities; o Scholarships for greater gender and geographical equity; and o Equipment of library with scientific books and journals.

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2 o

3 Project Management

0.21 Million

Audit Operating and mission costs related to project implementation for the

ECOWAS Commission 2.2. Technical solution retained and other alternatives explored Table 2.2: Project alternatives considered and reasons for rejection

Alternative option Brief description

Reasons for rejection

Two separate projects Supporting each institution separately through two different projects

One of Project’s objectives is to assist SSA in building regional poles of excellence organized around national thematic institutions linked within a network so as to achieve economies of scale and facilitate the creation of scientific hubs better able to gain international recognition.

Support to national universities

Strengthening currently existing universities

The objective of gaining economies of scales by establishing poles and networks of institutions would be defeated by financing individual national institutions, which because they are under the aegis of the public administration and are therefore very difficult to reform.

2.3. Project type The Project has been categorized as a Regional Public Good operation. It is non-excludable because the two institutions have as a mandate to provide high-level S&T education to students from African countries. In addition, it will be difficult to exclude students from other countries to enrol in the network of institutions supported by the Project, especially with the distance learning program launched by 2iE. Furthermore, neighboring countries cannot be stopped from enjoying the benefits of increased supply of qualified engineers, scientists and

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researchers across the border, as (i) students, teachers and researchers alike will have the possibility of offering their services abroad; and (ii) research outcomes will likely be applicable to the region for the benefits of its whole population. Access to training facilitated by the Project is also non-rival given that the proposed network of institutions will be opened to all qualified students within the region, not to mention the fact that once produced, high-level training and skills in science and engineering can be enjoyed by each and every ECOWAS member without reducing availability to others. Indeed, by improving access to education and training in the specialized fields of water, environment, energy, oil, gas, mathematical modelling, and computer science and engineering, the Project will help create the critical mass of skilled individuals for productive sectors required to prevent the fact that the use of some expertise by one country will be at the expense of another. In addition, the mobility of students, teachers and researchers facilitated by the establishment of networks of institutions will enable increased access to skilled resources by all countries. Finally, the regional dimension of the project is inherent in the fact that each country taken individually will not be able to mobilize the often prohibitive amounts of resources required to establish S&T centres of excellence, hence the key role the Bank has to play in facilitating the creation of regional poles of excellence organized around national thematic institutions, all of them linked within a network. Through its contribution to the establishment of a pole of excellence in higher education, S&T, the project will benefit all ECOWAS member countries and the RMCs as a whole, and as such, will give them access to a regional public good. In addition, the ECOWAS Commission will play a federative role by facilitating the implementation of a regional framework for the equivalence of certificates and the circulation of skills in the region. 2.4. Project cost and financing arrangements 2.4.1 Total Project cost, net of taxes and custom duties, is estimated at UA 12.00 million. This includes UA 8.40 million in foreign exchange (70%) and UA 3.60 million in local cost (30%). Project costs are covered by a UA 12.00 million grant to the ECOWAS Commission. Recourse to such a financing instrument is justified by the fact that the Project has been classified as a Regional Public Good. 2.4.2 Tables 2.2 and 2.3 below present estimated project costs by components and category of expenditure. Table 2.4 shows the expenditure schedule by component. Costs have been estimated on the basis of information obtained from the Ministries in charge of Education, Finance and various stakeholders in both countries. Incorporated in the cost estimates are a 5% average physical contingency factor (7% for works, 5% for goods and 3% for services) and 3% for price escalation on local and foreign currency. Technical Annex B.2 presents detailed costs.

Table 2.2: Project cost estimates by component [amounts in million UA equivalents]

UA million Component Local Foreign Total % Total

Exchange and networking 0.40 3.00 3.40 28 Quality and relevance of training 2.89 4.57 7.46 62 Project Management 0.05 0.15 0.19 2 Base Cost 3.34 7.71 11.05 92 Physical Contingencies 0.19 0.42 0.61 5 Price Contingencies 0.12 0.21 0.34 3 TOTAL 3.65 8.35 12.00 100 % 30 70 100

Note: Exchange rates are provided in the introduction of this report (page (i)).

Table 2.3: Project cost by category of expenditure [amounts in million UA equivalents]

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UA million Category Local Foreign Total Goods 1.26 2.94 4.20 Works 1.47 1.47 2.94 Services 0.61 3.30 3.91 Base Cost 3.34 7.71 11.05 Physical Contingencies 0.19 0.42 0.61 Price Contingencies 0.12 0.21 0.34 TOTAL 3.65 8.35 12.00

Table 2.4: Expenditure schedule by component [amounts in million UA equivalents]

Components 2009 2010 2011 Total Exchange and networking 1.19 1.17 1.37 3.73 Quality and relevance of training 3.34 4.29 0.43 8.06 Project Management 0.07 0.07 0.07 0.21 Total base cost 4.60 5.53 1.88 12.00

2.5. Project’s target area and population Although Project activities are carried out in Abuja (AUST) and Ouagadougou (Burkina Faso), they will benefit all students in the ECOWAS region and even beyond3. Furthermore, neighboring countries of the two institutions will be able to enjoy the benefits of increased supply of qualified engineers, scientists and researchers as: (i) students, teachers and researchers alike will have the possibility of offering their services across borders; and (ii) research outcomes will likely be applicable to the region for the benefits of its whole population. In terms of gender equity, specific efforts will be made to attract and retain female students in the schools. Benefits will also accrue to faculty and administrators involved in both institutions in the form of training, faculty exchanges and participation to scientific conferences. Finally, the Project also targets the private sector as AUST will train 510 full-time degree students and some 100 part-time students from petroleum companies during the project life. Furthermore, it is expected that many firms in Africa (small, medium and large) will benefit from Project activities through industry-institution collaboration, research and innovation. 2.6. Participatory process for identification, design and implementation 2.6.1 The project, which was initiated at the request of the ECOWAS Commission, was designed through a participatory approach involving consultations (meetings, discussions) with staff of the ECOWAS Commission, Government partners (ministries and institutions involved), as well as the donor community (World Bank, IFC, and French Cooperation Agency). In addition, both AUST and 2iE held separate consultative meetings with communities located near Project sites to determine the economic and social impacts of the Project on their livelihoods. The outcomes were received positively by community members. 2.6.2 Stakeholders will be involved in Project monitoring through: (i) consultations during Bank field missions; and (ii) their participation in the Project Steering Committee (PSC), comprised of the Heads and a member of the Scientific Advisory Board of each institution , the Director of Education, Culture, Science, and Technology of ECOWAS,, and a representative from the private sector in Nigeria and Burkina Faso, to oversee Project implementation.

3 Current school statistics show that 2iE’s 800 and AUST’s 50 students come from 24 and 8 countries respectively. AUST faculty comes from 15 countries, 6 of them African, and 2iE faculty from 12 countries (Benin, Côte d’Ivoire, Gabon, Mali, Niger, Chad, Cameroon, France, Guinea, Mauritania, Senegal and Togo,

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2.7. Bank Group experience, lessons reflected in project design 2.7.1 Project design has been based on lessons drawn from other Bank-supported national and regional interventions in higher education such as: the AVU Project; the Support to Higher Education Project in WAEMU; the Forum for Agricultural Research in Africa; and the Support to the Kigali Institute of Science Project. Together, these initiatives combine to lay the foundation for the establishment of regional poles of excellence to train Africans in science and engineering. In this regard, the Bank’s intervention is a consolidated response to the pressing demand for quality and relevant training of highly skilled scientists and engineers in Africa to mitigate the myriad of development challenges facing the continent.

2.7.2 Lessons drawn and taken into consideration from earlier Bank interventions are as follows: (i) Sustainability: The absence of robust economic and sector analysis to determine the viability of Bank’s support to regional operations often impedes the sustainability of Bank interventions. Project Funds will help the management teams of the two institutions develop and strengthen their cost-recovery schemes in order to become financially self-sufficient, thus ensuring Project sustainability; (ii) Partnership: Lack of coordination and harmonization of efforts amongst partners from the onset, as was the case for the Bank-supported AVU Project, can lead to implementation challenges. Given the multiple donors involved in this project, coordination and harmonization with other institutions is essential. It will be built on existing AUST and 2iE coordination mechanisms; (iii) Architectural studies: The unavailability of architectural studies prior to project effectiveness often leads to unnecessary delays in project implementation. In this case, architectural studies for both 2iE and AUST have been completed before appraisal; and (iv) Relevance of training to actual needs: The limited relevance of training is still identified as a major obstacle to the quality and relevance of education. The dialogue with the productive and private sectors at Project design and the establishment of partnerships during Project implementation will go a long way towards ensuring trainees’ skills relevance to market needs. 2.8. Key performance indicators

Several indicators are proposed to monitor improvement in access, retention and employment (see logframe): Impact (long term results): Networks of Science and Technology institutions established and reinforced; Outcomes (medium-term results): (i) number of students trained in institutions; (ii) number and quality of research and publications produced; (iii) number of initiatives involving private sector participation; Output (short term results): (i) capacity increase in boarding, classrooms and laboratories space; (ii) increased number of students in Bachelor, Masters and Doctoral programs; (iii) qualified staff needs fulfilled; (iv) number of partnerships established with private sector; (v) proportion of bilingual modules; (vi) increased number of joint programs undertaken and coordinated within pole; (vii) number of studies & publications; and (viii) framework for higher education equivalence of degrees and certificates in ECOWAS region developed. These indicators will allow measurement of progress towards the achievement of Project objectives.

III – PROJECT FEASIBILITY

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3.1. Economic and financial performance Both private and social benefits will be derived from the Project. A recent study by the World Bank has demonstrated that a higher education degree leads to a 28% premium in earnings for college graduates in Africa, which is considerably higher than the world’s average rate of returns of 19%. In the case of 2iE, a tracking survey has shown that 50 percent of its students get job offers before finishing the program and more than 90 percent of them obtain employment within the first six months of graduation from the institute. The additional skills acquired by graduates improve their employability, measured as the chance of finding a job as well as moving up the career ladder within a given profession, and income stream (the average monthly salary of 2iE graduates is FCFA 420,000 (US$860) and AUST graduates will earn on average US$2,000 per month at entry level). In terms of social benefits, there will be greater long term efficiency for African countries in training scientists and engineers on the continent, rather than sending them to universities and colleges in Europe or North America. For instance, the annual per student cost of obtaining a higher education in engineering in France is more than three times higher than that in Burkina Faso (€26,420 and €6,720, respectively). Moreover, 90% of 2iE graduates stay in Africa, thus contributing to reducing the brain drain, as 60% of African students who go abroad to study tend not to return to Africa. While migrant workers send remittances to their home countries, which may constitute significant sources of income for their families, recent empirical research has confirmed that the cost of innovation foregone cannot be offset by remittances. Indeed, the migration of highly qualified scientists –which is the case for graduates in petroleum, water and related sectors–, has greater costs to African countries in terms of critical knowledge and innovation needed to transform the economies. Nigeria alone has more than 20,000 doctors operating in Europe, while regions in the country and neighbouring countries of the regions lack doctors. Furthermore, the risk inherent in the immigration abroad of graduates from renowned African institutions of excellence will be mitigated by the availability in Africa of a critical mass of qualified individuals trained locally. 3.2. Environmental and Social impacts 3.2.1 Environment: The project has been classified as category 2 on June 07, 2006. Project activities include construction of buildings, external works and landscaping. Both institutions have carried out impact and environmental assessments (IEA), which have been submitted to respective country authorities and approved (see Annex). There is no population resettlement involved in either project site. The IEA prepared for 2iE, which includes all construction and rehabilitation works to be undertaken for the years to come, has been reviewed and finalized by the World Bank’s safeguards team, and has been disclosed at the World Bank’s InfoShop and in the country. The IEA includes the following measures, some of which have already been completed during the first phase of the 2iE expansion: (i) conservation and utilization of rain water for irrigation; (ii) optimization of water consumption based on simplified systems; (iii) natural treatment of sewage; (iv) construction of student boarding facilities in local materials; (v) sustainable waste management and utilization for agriculture; and (vi) development of an arboretum adapted to the climate of the Sahel. As for AUST, the IEA prepared has been approved by the Nigerian Federal Ministry of Environment in May 2008. The ESMP includes measures to mitigate the following potential impacts: (i) vegetation destruction/loss; (ii) soil degradation; (iii) surface and ground water contamination; (iv) flooding/interface drainage pattern; (v) wildlife habitat loss; (vi) air quality; (v) noise; (vii) construction waste – accumulated soil spoil and accumulated vegetation (log of wood);

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(vi) operational waste rubbish/garbage; (vii) sanitary waste; (viii) workers health; (ix) material resources; (x) aesthetics (visual); and (xi) decommissioning and abandonment. 3.2.2 Climate Change: Likewise, the Project will have no adverse impact on the climate in both countries. Given the fact that climate change is a key concern in Nigeria and Burkina Faso, measures are in place to reduce the negative impact of construction projects on the environment. They include energy-saving equipment and alternative energy sources for powering/running tools to reduce the negative effects on the climate. Further, as a member of the Research Consortium on climate change (AMMA – African Monsoon Multidisciplinary Analysis) climate change is a key area of focus for 2iE, which studies the consequences of climate change on families, livelihood, and food security. 2iE also hosts the Volta Hydrological Cycle Observing System Project financed by the Fonds Français pour l’Environnement Mondial (FFEM), which aims at analyzing the problems related to the Volta River Basin (Ghana, Burkina Faso, Benin, Togo, Côte d’Ivoire, and Mali). 2iE is thus well positioned to address climate change concerns and transfer innovations emanating from research to local communities continent-wide. On its part, ECOWAS has engaged a regional dialogue aimed at developing a common vision and a regional strategy to address climate change in West Africa. One of the objectives of this initiative being to enhance the technical capacity in the region, 2iE and the network facilitated by the Project will play a critical role to that end. 3.2.3 Gender: The project provides for increased participation of women in higher education, science and engineering training and as such, contributes to building women’s competence in professions where they are underrepresented through: (i) a financial aid program, as academically meriting female students will have priority access to scholarships provided; and (ii) campaigns to recruit female students. Women’s assertiveness and leadership skills will be enhanced through competition and sharing with male students, and once equipped with relevant knowledge and skills, female graduates will be able to gain employment and access to self-employment, thus contributing to poverty reduction. Indeed, the knowledge generated from research on the environment, water, energy and the production of appropriate technological equipment by the two institutions will contribute to sustainable livelihood for thousands of women in Africa, thereby reducing the high incidence of poverty amongst the female population. It is also expected that female students at AUST and 2IE, in their capacity as ambassadors for greater girl’s involvement in science and technology at secondary school level, will serve as role models and stimulate girls’ interest in fields still strongly dominated by males. Over time, enough SSA female professionals will be actively engaged in research and development work and be able to bring their contribution to strengthening Africa’s competitive position in the world market. 3.2.4 Social: The improved access to education and training in the specialized fields of water, environment, energy, oil, gas, mathematical modeling, and computer science and engineering facilitated by the project will help create a critical mass of skilled individuals for the productive sectors. This will be sufficient to prevent the fact that the use of some expertise by one country will be at the expense of another. Furthermore, the training of engineers and researchers in water and environmental management and research, fields with direct impact on economic growth, will enable the Project to contribute to the provision of safe drinking water and sanitation services, and sustainable development in the ECOWAS region. Likewise, strengthened collaboration with the private sector through consultations to elaborate and regularly improve the curricula, develop internship programs and invite professionals for lectures will increase the relevance of the courses offered by the institutions,

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thus the ability of students to find well-remunerated jobs shortly after graduation4. The development of bilingual programs in the two institutions, the strengthening of faculty and exchange programs and the establishment of a framework for the equivalence of certificates facilitated by the Project are all activities likely to promote mobility in the region as language barriers fall down. Finally tapping into the African Diaspora for lectures, academic exchange and technical assistance will help turn the currently devastating brain drain into a productive brain gain. 3.2.5 Involuntary resettlement: The project does not involve resettlement.

IV – IMPLEMENTATION 4.1. Implementation arrangements 4.1.1 Project Management. Day-to-Day management of the project will be carried out by the three institutions as follows: (i) the ECOWAS Commission will carry out its assigned project activities through its Department of Education, Culture, Science, and Technology while financial management of Project resources will be carried out by the Budgeting and Financial Management Department; (ii) at AUST, Project activities will be supervised by the President and carried out by a team comprised of the Chief Financial Officer, the AUST Project Manager, and other technical staff (including the project accountant, the technical assistant-architect, the technical assistant-quantity surveyor, the procurement officer and consultants hired on an ad-hoc basis); and (iii) at 2iE, Project activities (including financial management) will be supervised by the Director-General and carried out by the existing Financial, Budgeting and Resource Directorate. Staffing in this Directorate is comprised of one Director, one chief accountant, four accountants and a procurement officer. In addition, 2iE has maintained an internal audit unit to support and enhance the internal control system. During appraisal, the staffing of the services at each institution was found adequate to coordinate ADF resources. Each institution (ECOWAS, AUST, and 2iE) will have to designate a staff member to serve as a focal person for the project; these focal persons, staff of the institutions will coordinate under the supervision of the Heads of the institutions (President of AUST, Director General of 2iE and Director of the Department of Education, Culture, Science, and Technology of ECOWAS) the activities of the project to be carried out by their institutions. The appointment of these focal persons will be a condition for first disbursement. In addition, since neither AUST nor 2iE is a signatory to the Protocol of Agreement, they will have to provide a letter (s) to ECOWAS and to the Fund, setting out their responsibilities for the Project, including implementation. This will be a condition precedent to first disbursement. 4.1.2 Project coordination will be ensured as follows: (i) a PSC, comprised of the Director of Education, Culture, Science, and Technology of the ECOWAS Commission, the Heads and a member of the Scientific Advisory Board of each institution, and representatives of the private sector in Nigeria and Burkina Faso, will be established to oversee Project implementation. The PSC will meet once a year to assess progress made towards the Project goals, and make strategic decisions regarding the Project; and (ii) a Technical Committee (TC) comprising the focal persons responsible for facilitating implementation and

4 Currently, 90% of 2iE students are offered jobs within 6 months after graduation.

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coordination of Project activities. This TC will meet at least twice a year (and more when warranted) to review progress and discuss current management issues. 4.1.3 Disbursement arrangements. For Project management, implementation and coordination purposes, three special accounts (SA) will be opened by the three institutions (ECOWAS, AUST, 2iE) in convertible foreign currency in local banks acceptable by the Bank to receive the proceeds of the ADF grant. Though ECOWAS is the Beneficiary of the Grant, it will agree, pursuant to the terms of the Protocol, that 2iE and AUST may receive disbursements directly from the Fund. Such accounts will be used to cover transactions in both foreign and local currencies. An initial deposit for an amount corresponding to 6 months of activities as justified by a work program approved by the Bank will be made in the SA. Subsequent replenishments of the SA will be subject to the Executing Agencies having provided sufficient justifications for the use of at least 50% of the most recent advance and 100% of the previous advances, and upon production of an agreed work program for the following six months. Direct payments to contractors will be effected during the course of Project implementation as per Bank’s rules of procedure. Project management will maintain accounts in accordance with international accounting standards and will ensure that accounting and financial management systems, acceptable to ADF, include internal controls and procedures, and a set of records. External auditors, to be competitively recruited and financed from project funds, will carry out annual audits of the accounts. 4.1.4 Procurement arrangements. All Bank-financed procurement of works, goods and acquisition of consulting services will be in accordance with Bank’s Rules and Procedures for Procurement of Goods and Works or, as appropriate, Rules and Procedures for the Use of Consultants, using the relevant Bank standard Bidding Documents. Project management will maintain accounts in accordance with international accounting standards and will ensure that accounting and financial management systems, acceptable to ADF, include internal controls and procedures, and a set of records. External auditors, to be competitively recruited and financed from project funds, will carry out annual audits of the accounts. 4.2. Monitoring

Timeframe Milestone Monitoring process / feedback loop March 2009 Grant approval

June 2009 Project launched, implementation staff trained and fully informed of project

Launching mission organized with adequate skills mix

September 2011 Laboratories, research and residential facilities for AUST and 2iE completed and equipped

Quarterly progress reports Supervision missions

June 2010 Bilingual programs ready for use Recruitment of quality faculty and attractive incentives; relevant programs developed and delivered

September 2009 – June 2012 Greater female enrolment in schools School statistics, Quarterly progress

reports, Program reports September 2009-June 2012

Exchange program established between two institutions

School statistics, Supervision missions, quarterly progress reports

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4.3. Governance 4.3.1 Both institutions have a well-structured Governance system with International Boards including representatives from public and private sectors and academia, scientific academic boards and highly qualified management staff. Furthermore, both institutions have developed Management Handbooks which have been reviewed by the mission and make provision for annual external audits of their accounts. As for the ECOWAS Commission, it is a long-established Regional Economic Communities which is already managing several Donor-supported projects including the Bank’s, and is benefiting from support to strengthen its own capacities. 4.3.2 One risk could have emerged from the multiplicity of donors supporting the two institutions, each with their specific requirements (procurement procedures, reporting, etc.), thus the undue strain on the two institutions’ management capacity. In a particular effort to adhere to the principles and spirit of the Paris Declaration and mitigate the above mentioned risk, the project appraisal team has worked in a very coordinated manner with other donors to ensure program documents, as well as respective analysis and assessment sharing, and use of common procurement plans and monitoring indicators. 4.4. Sustainability 4.4.1 Project sustainability is ensured by the fact that it addresses a regional priority, which consists of making S&T the engine of development in the ECOWAS region. Improved management by a Board of Trustees including members from the private sector, the availability of bilingual programs in English/French, and the lower cost of training in Africa versus OECD countries will also attract a larger number of students. The resulting increased fee payment will ensure financial stability in the two institutions that will progressively phase out untargeted public subsidies (accounting for 15% in 2007). In the case of 2iE, for example, it is expected that by the year 2011, student fees will represent 42% of the institution’s income, public research and capacity building contracts, 29%, and distance education, lifelong learning and private contracts, 29%. Project sustainability is furthered by the ability of the two institutions to meet the critical needs of productive sectors through training of highly qualified scientists and engineers likely to facilitate partnerships with and generate support from the private sector. 4.4.2 Project funds involve investment costs as the recurrent costs of the institutions are covered by their cost-recovery activities, as demonstrated in their long-run business plans (2008-2021), including tuition, production alongside training, à la carte training for the private sector, among others. As previously stated, students’ fees are estimated to generate over 40 percent by Project completion to cover part of the operating costs while private sector support is estimated to bring in 5 – 8% to the institutions by Year 5. 2iE’s financial analysis (Annex B7) shows that the institution will be self-sufficient by 2011. In addition, other cost savings initiatives such as energy-saving buildings and equipment, and alternative energy source for powering/running tools are also being introduced to reduce utility costs.

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4.5. Risk management

Risks/assumptions Risk Rating Risk mitigating measures

Insufficient enrolment rates M

Both institutions offer comparable world class teaching and research facilities likely to attract the brightest students in the ECOWAS region. Scholarship and loan schemes are also in place to assist academically deserving students with limited resources. Faculty members are attracted through competitive salaries and incentives and an initiative has been launched to tap in the pool of world-renowned professors of the African Diaspora. An E-Learning program has also been set up to reach a wider student base and facilitate access to tertiary education. Strengthened linkages and collaboration with the private sector is expected to encourage transfer of ideas into products and services making training more relevant and responsive to local and national needs, thereby generating more regional interest for the schools. At last but not least, ECOWAS will play a key role in student enrolment campaigns throughout the region.

Inability to secure funds required to ensure project sustainability

L

In addition to the already developed strategies to deepen private sector participation and facilitate resource mobilization, the two institutions have put together cost recovery schemes that will enable them to be financially self-sufficient by Project completion. Moreover, there is strong commitment from the governments of Nigeria and Burkina Faso for continued support to the institutions. A transparent governance system will also ensure accountability and inspire confidence thereby attracting more private funding.

Strain on management capacity of ECOWAS, 2iE and AUST caused by multiplicity of donors support.

L Donor coordination to ensure use of common program documents, analysis and assessment sharing, and procurement plans and monitoring indicators.

M: Moderate; L: Low 4.6. Knowledge Building 4.6.1 Project activities (improvement of teaching and research facilities; faculty, researchers and students exchange program; support to doctoral students) are designed to generate scientific knowledge and innovative technologies readily usable by communities to facilitate their day-to-day lives and involvement in income-generating activities. This knowledge will be disseminated at national and regional levels through seminars and discussion fora. In addition, the distance education program set up in water and environment engineering, as well as the outreach program which includes the organization of and/or participation to international conferences and the publication in international scientific journals and communication in various media, will increase access to and dissemination of locally developed and acquired knowledge. Finally, once tested, this model could thus be used by other donors and other Bank-financed Projects to facilitate the expansion of networks in Sub-Saharan Africa. 4.6.2 Within the Bank, OSHD will collaborate with the Office of the Chief Economist, the Post-evaluation department and other relevant Bank departments and units to analyze, synthesize, and share emerging good practices. Knowledge gained from this operation will be disseminated widely in print and electronic formats in the Bank.

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V – LEGAL INSTRUMENTS AND AUTHORITY

5.1. Legal Instrument The financing instrument proposed is a grant of UA 12.00 million to ECOWAS. 5.2. Conditions associated with Bank’s intervention Conditions precedent to Entry into force of the Grant Agreement: The Grant agreement shall enter into force on the date of signature by the Recipient and by the Fund. Conditions precedent to First Disbursement: The obligations of the Fund to make the first disbursement to the Recipient shall be conditional upon the fulfillment of the following conditions: The Recipient shall provide for itself and for each of 2iE and AUST, evidence, in form and substance satisfactory to the Fund of: o the opening of three (3) special accounts to receive the proceeds of the grant; o the designation of three (3) focal persons to facilitate and coordinate Project

implementation, which persons shall be acceptable to the Fund; and a Side Letter(s) for the benefit of itself and for the Fund, from AUSTand 2iE regarding their responsibilities under the Project, including implementation 5.3. Compliance with Bank Policies This Project complies with all applicable Bank policies and strategies such as the: (i) Higher Education, Science and Technology (HEST) strategy (2008), (ii) the ADF-11 financing guidelines provided in the Report on the Eleventh General Replenishment of the Resources of the Fund, (iii) the currently applicable ADF-11 Country Resource Allocation, (iv) (v) the Strategic and Operational Framework for Regional Operations, and (vi) Medium-Term Bank Group Strategy 2008-2012.

VI – RECOMMENDATION Management recommends that the Board of Directors approve the proposed grant of UA 12.00 million to the ECOWAS Commission for the purposes and subject to the conditions stipulated in this report.

Appendix I. Map of Project Area

Appendix II

Rationale for Project Classification as a Regional Public Good

Non-excludability: The ECOWAS region has had a long history of mobility of people and goods in the community. The student population will be from within the region, as well as from other parts of Africa. As such, it is difficult to exclude any one from benefiting from the training and education services offered. Most importantly, the trained graduates will be free to move out of the region with the knowledge and skills they have gained from the training, which indicates that it is not possible to exclude other parts of the continent from benefiting from the knowledge and skills gained at the institutions. Neighboring countries will also experience the benefits of increased supply of qualified engineers, scientists and researchers across the border. Also both institutions are in the process of expanding outreach and distance education programme that will render even more non-excludable. Non-rivalry: Access to training is non-rival given that the proposed network of institutions will be opened to all students within the region, not to mention the fact that once produced, high-level training and skills in science and engineering can be enjoyed by each and every ECOWAS member without reducing availability to others. Indeed, by improving access to education and training in the specialized fields of water, environment, energy, oil, gas, mathematical modeling, and computer science and engineering, the project will help create the critical mass of skilled individuals for productive sectors required to prevent the fact that the use of some expertise by one country will be at the expense of another. In addition, the mobility of students, teachers and researchers facilitated by the establishment of networks of institutions within harmonized higher education networks and systems will enable increased access to skilled resources by all countries. Public Ownership: In its 2004 action plan for higher education, science and technology, the African Union has identified the development of regional centres of excellence as a key action to accelerate access to higher education with a clear focus on gender parity. Furthermore, ECOWAS has been mandated by the AU to further promote increased access to higher education, objective to be achieved through the promotion of Centers of Excellence and a regional harmonisation of curricula, education standards and certification at all levels. The Nelson Mandela Institution (NMI) has been recognised by the Summit of the African Union in 2004 as one of the regional vehicles and the AU’s operational arm for improving higher education in science and technology. The AUST and 2iE are affiliated centres of excellence of the institution. Regional Dimension: The regional dimension of the project is inherent in the fact that each country taken individually will not be able to mobilize the often prohibitive amounts of resources required to establish science and technology centres of excellence, hence the key role the Bank has to play in facilitating the creation of regional poles of excellence organized around national thematic institutions, all of them linked within a network. Through its contribution to the establishment of a pole of excellence in higher education, science and technology, the project will benefit all ECOWAS member countries and the RMCs as a whole, and as such, will give them access to a regional public good. Indeed, the NMI pole will consist of four thematic networks built around four institutions: (i) the African University of Science and Technology (AUST) in Abuja; (ii) the AIST in Arusha; (iii) the Gulf of Guinea Gas Institute (G2I) on natural gas and petroleum engineering in Abuja; and

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(iv) the International Institute for Water and Environmental Engineering (2iE) in Ouagadougou. Other institutions which are preparing to join are: The African Institute for Mathematical Sciences in South Africa, the Abobo Adjamé University in Côte d’Ivoire, the Kwame Nkrumah National University of S&T, the Physics and Mathematics Institute of Benin. and the University of Dar es Salaam are already partners of AUST and/or 2iE. The proposed project will facilitate the integration and strengthening of the AUST and the 2IE which admit students from across Africa. 2iE currently enrols students from 24 African countries and AUST has students from 8 African countries. Strategic Alignment: The project is in line with the Bank’s Strategy for Higher Education, Science and Technology which aims to create poles of excellence and build networks of complementary centres of excellence with the view to improving the conditions for conducting scientific and technological innovations and sharing research in key areas for Africa’s development. Higher Education, Science and Technology has also been defined as a priority sector in the Bank’s Medium-Term Strategy. Catalytic and Upstream Role: AUST and 2IE have already benefited from support by numerous multilateral and bilateral donors including the World Bank, the French Development Agency (AFD), the International Finance Cooperation, the European Union as well as African Governments (Burkina Faso and Nigeria). None of those interventions was a result of a joint effort to promote higher education in the region but supported individual institutions. The proposed Bank operation, by facilitating the establishment of poles of excellence through the creation of regional networks of institutions, under the auspices of ECOWAS, will set the stage for greater coordination and harmonisation in the promotion of research and science and technology training in Africa. The Bank’s intervention will thus play a catalytic role in generating the critical mass of qualified skills required by the emerging economies in the region.

The Bank’s contribution will support the critical upstream role of increasing the availability of qualified skills and capacity in key areas such as engineering in the water sector, oil and gas, roads and energy. It will also provide the skilled expertise and knowledge needed to develop the emerging sectors in some of the natural resource rich countries on the continent. The existence of these skilled and trained personnel will be a critical factor for regional integration, increased private sector development and improved governance in the key strategic sectors as well as extractive industries. The Bank will also play a catalytic role in facilitation the development and implementation of a regional framework for education standards and certificates equivalences. Incremental Benefit in Cooperating: The linkage, within a network, of institutions in francophone and Anglophone countries will foster the development of bilingual and complementary education and training programs in science, environment, water, oil, gas, computer science and mathematical modeling. It has the advantage of breaking language barriers and promoting integrated sustainable development in the region through the generation of a mass of highly skilled and bilingual scientists and engineers. In addition, by exchanging students and faculty and sharing knowledge and technology, the two institutions will increase access to quality education and training for African students, thus adding value to the training provided. They will also benefit from each other’s experience and reinforce cooperation and networking amongst higher education institutions.

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Finally, the benefits of research outcomes in one country, often the result of joint efforts fostered by student and faculty mobility, will trickle down to the whole region.