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AFRICAN DEVELOPMENT FUND
MULTINATIONAL
PROJECT : PAN AFRICAN UNIVERSITY PROJECT
__________________________________________________
PROJECT APPRAISAL REPORT
OSHD DEPARTMENT
July 2013
Appraisal Team
Sector Director: Mrs. A. SOUCAT, OSHD
Regional Directors: MM. G. NEGATU (EARC), J. LITSE (ORWA), Mrs. M. KANGA (ORCE)
Sector Manager: Mr. B. SAVADOGO, OSHD.2
Team Leader: Mr. C. M. GUEDEGBE, OSHD.2
TABLE OF CONTENTS
I – STRATEGIC THRUST & RATIONALE ....................................................................... 1
1.1 PROJECT LINKAGES WITH RELEVANT STRATEGY AND OBJECTIVES ................................... 1
1.2 RATIONALE FOR BANK’S INVOLVEMENT .......................................................................... 2
1.3 DONOR COORDINATION .................................................................................................... 4
II – PROJECT DESCRIPTION ............................................................................................. 4
2.1 PROJECT COMPONENTS ..................................................................................................... 4
2.2 TECHNICAL SOLUTION RETAINED AND OTHER ALTERNATIVES EXPLORED ........................ 6
2.3 PROJECT TYPE .................................................................................................................. 7
2.4 PROJECT COST AND FINANCING ARRANGEMENTS.............................................................. 7
2.5 PROJECT’S TARGET AREA AND POPULATION ..................................................................... 9
2.6 PARTICIPATORY PROCESS FOR PROJECT IDENTIFICATION, DESIGN AND IMPLEMENTATION
.............................................................................................................................................. 10
2.7 BANK GROUP EXPERIENCE, LESSONS REFLECTED IN PROJECT ......................................... 10
2.8 KEY PERFORMANCE INDICATORS .................................................................................... 11
III – PROJECT FEASIBILITY ........................................................................................... 11
3.1 ECONOMIC AND FINANCIAL PERFORMANCE .................................................................... 11
3.2 ENVIRONMENTAL AND SOCIAL IMPACTS ........................................................................ 12
IV – IMPLEMENTATION ................................................................................................... 14
4.1 IMPLEMENTATION ARRANGEMENTS................................................................................ 14
4.2 MONITORING .................................................................................................................. 16
4.3 GOVERNANCE................................................................................................................. 17
4.4 SUSTAINABILITY ............................................................................................................ 17
4.5 RISK MANAGEMENT........................................................................................................ 19
4.6 KNOWLEDGE BUILDING .................................................................................................. 19
V – FINANCING INSTRUMENTS AND CONDITIONS ................................................. 20
5.1 FINANCING INSTRUMENT AND CONDITIONS .................................................................... 20
5.2 CONDITIONS ASSOCIATED WITH BANK’S INTERVENTION ................................................ 20
5.3 COMPLIANCE WITH BANK POLICIES ............................................................................... 20
VI – RECOMMENDATION ................................................................................................ 20
APPENDICES
APPENDIX I : DETAILED TEST FOR REGIONAL PUBLIC GOOD ELIGIBILITY
APPENDIX II (A) : IMPLEMENTATION STRUCTURE FOR THE PROJECT
APPENDIX II (B): EXPENDITURE CATEGORIES BY BENEFICIARY INSTITUTION
APPENDIX III: COMPARATIVE SOCIO-ECONOMIC INDICATORS OF HOST COUNTRIES
APPENDIX IV: MAP OF THE REGION INDICATING PROJECT SITES
APPENDIX V : PROCUREMENT ARRANGEMENTS
i
TABLES Page
1.1 Contribution of development partners to initial phase 4
2.1 List of programs by PAU thematic institute 5
2.2 Project components 5
2.3 Alternatives considered and reasons for rejection 7
2.4.1 (a) to 2.4.5: Project costs 8-9
4.1 Financial management risk assessment 16
4.2 Procurement risk assessment 16
4.3 Monitoring schedule 17
4.4 Risks and mitigation 19
FIGURES
1. Percentage of students enrolled in S&T fields (2010) 2
2. Employment of active population 25-34 with higher education level 2
3. Relation between GER and Gender Parity in Tertiary Education 12
4. Projected evolution of recurrent costs and revenue 18
Currency Equivalents As of April 2013
1 Unit of Account (UA) = 1.5 US$
1 UA = 235.1 NGN
1 UA = 130.6 KES
1 UA = 767.3 XAF
Fiscal Year
[Fiscal year 1 July – 30 June]
Weights and Measures
1 metric ton = 2204 pounds (lbs.)
1 kilogram (kg) = 2.200 lbs.
1 meter (m) = 3.28 feet (ft)
1 millimeter (mm) = 0.03937 inch (“)
1 kilometer (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
ii
Acronyms and Abbreviations
AAU Association of African Universities
AERC African Economic Research Council
AU African Union
AUC African Union Commission
AUST African University of Science and Technology
AVU African Virtual University
COMEDAF Conference of Ministers of Education of the AU
CSP Country Strategy Paper
ECOWAS Economic Community of West African States
EU European Union
GER Gross Enrolment Rate
HEST Higher Education, Science and Technology
ICT Information and Communication Technologies
JICA Japan International Development Agency
KES Kenyan Shilling
LTP Lead Thematic Partner
MIS Management Information System
MTS Medium Term Strategy
NEPAD New Partnership for Africa’s Development
NGN Nigerian Naira
OECD Organization of Economic Cooperation and Development
PAU Pan African University
PAUGHSS PAU Institute of Governance, Humanities and Social Sciences
PAULESI PAU Institute of Life & Earth Sciences
PAUSTI PAU Institute of Science, Technology and Innovation
PBA Performance-Based Allocation
PIDA Programme for Infrastructure Development in Africa
REC Regional Economic Community
RISP Regional Integration Strategy Paper
RPG Regional Public Good
SIDA Swedish International Development Agency
SSA Sub Saharan Africa
STEM Science, Technology, Engineering and Mathematics
STI Science, Technology and Innovation
UNECA United Nations Economic Commission for Africa
WAEMU West African Economic and Monetary Union
WDR World Development Report (World Bank)
XAF CFA franc (Central Africa)
iii
Grant Information
Client Information
GRANTEE: African Union Commission (AUC)
EXECUTING AGENCY: Directorate of Human Resources, Sciences and Technology (HRST),
African Union Commission (AUC); PAU Institute of Basic Sciences,
Technology and Innovation (PAUSTI) at Jomo Kenyatta University
of Agriculture and Technology (JKUAT); PAU Institute of Life and
Earth Sciences (PAULESI) at the University of Ibadan (UI); PAU
Institute of Governance, Humanities and Social Sciences
(PAUGHSS) at The University of Yaoundé II (UYII)
Financing Plan (2013-2018)
Source Amount (UA million) Instrument
ADF 30.00 Grant
Governments 17.93
AUC 44.26
Other partners (LTPs) 10.64
Total cost 102.83
ADB’s key financing information
Grant currency
Unit of Account
FIRR, NPV (base case) NA
EIRR (base case) NA
Timeframe - Main Milestones (expected)
Concept Note approval
March 2012
Project Reappraisal March 2013
Project approval July 2013
Effectiveness December 2013
Completion December 31, 2018
Last Disbursement June 30, 2019
iv
Project Summary
1. Project overview. By supporting the Pan African University (PAU), the project
will advance Africa’s goal of enhancing its competitiveness and growth through the
creation of high quality higher education and research capabilities. The PAU is a
regional university offering only postgraduate (Master and doctoral) programmes. It aims at
establishing an academic network of already existing post-graduate and research institutions.
It will serve the entire continent in five development areas1 identified by the Heads of States
and the Conference of African Ministers of Education (COMEDAF). The total cost of the 5-
year PAU support project is estimated at UA 102.83 million of which the ADF will
contribute UA 30.00 million as a grant. The balance of UA 72.83 million will be mobilized
by the African Union Commission (AUC), the countries hosting the PAU institutes and the
Lead Thematic Partners (LTPs).
2. The implementation structure of the PAU is based on the selection of existing
universities, on a competitive basis, to host the regional PAU Institutes and Centers. The
first three PAU lead thematic institutes (out of five) are established and are hosted by Jomo
Kenyatta University of Agriculture and Technology (JKUAT) in Kenya (for Sciences,
Engineering, and Technology), the University of Yaoundé II in Cameroon (for Governance,
Humanities and Social Sciences), and the University of Ibadan in Nigeria (for Life and Earth
Sciences). They will serve all African countries. Algeria has been recently chosen for North
Africa while selection for the host country for Southern Africa is in progress. Details of the
structure of the PAU are provided in the approved Statute (Technical Annex C.5).
3. Needs Assessment. The project will help provide Africa with the skills needed to
add value to its natural resources and enhance its competitiveness and sustainable
growth. Through the post graduate programs in Science, Technology, Engineering and
Mathematics (STEM), and governance offered in its thematic networks of institutions, the
PAU will help constitute critical masses of talents in priority areas for Africa, while
enhancing regional cooperation and integration in training and research in higher education as
well as ensuring gender diversity for social inclusion.
4. Bank’s Added Value. The Bank is playing a major role in the establishment of
the PAU. First, it has provided technical assistance and advice to the AUC and the host
universities for the PAU overall needs assessment concerning all components and activities.
Second, through the project it is providing financial resources for key cost areas, thus playing
a catalytic role in inducing the other partners to commit themselves to the total budget.
5. Knowledge Management.This project also offers a model for establishing a
university system at the continental level and the Bank will learn from this experience.
It is in line with the Regional Integration and Skills and Technology core operational
priorities of the Bank’s 2013-2022 Strategy and the Human Capital Strategy under
preparation. The design of this university system (involving universities outside the continent,
African countries, the private sector, the AU and bilateral and multilateral donors) is unique.
The knowledge gained in implementing the PAU will be used to design the Bank’s support to
other centers of excellence, future scientific networks or future universities. This knowledge
will be available through documents and web sites as well as exchange of experience between
the project staff and experts in the AU countries.
1 The thematic areas constituting the PAU Programs and the geographical distribution are the following: (i)
Basic sciences, Technology and Innovation, in East Africa, (ii) Earth and Life Sciences (including health and
agriculture), in West Africa, (iii) Governance, Humanities and Social Sciences, in Central Africa, (iv) Water and
Energy Sciences (including climate change), in North Africa and (v) Space Sciences in Southern Africa.
v
Multinational: Support to Pan African University Project
(Result-based Logical Framework) Project goal: Establish a world class regional university system to serve the entire continent in key development areas
RESULTS
CHAIN
PERFORMANCE INDICATORS Means of
verification
RISKS, ASSUMPTIONS
AND MITIGATING
MEASURES Indicators
Baseline Target
IMP
AC
T
Africa’s
competitiveness and growth are improved
through high quality
higher education and research capabilities
1) African Universities International
Ranking and Research Productivity
2) Unemployment rate of PAU students 6
months after graduation
3) Number of patents by PAU Institutes
1) Three African
universities are in
Top 500 (Shanghai
2010 rating)
2) 25% in SSA for
higher education
graduates in 2011
3) None in 2011
1) 2 PAU institutes in the
top 500 in 2020
2) Less than 5% in 2018
3) At least one by year from
2016
- Baseline
report; -AUC;
RECs
- UNESCO,
AAU, AUC,
RECs, WB, ,
Labor Market
Surveys
OU
TC
OM
ES
Result 1: Efficient
regional higher
education governance
system (PAU)
1.1 Proportion of regional thematic hubs
and centers fully integrated in the PAU
governance structure
1.2. A single accreditation system in place
for PAU programs
0% in 2011
Non existent in
2011
100% by 2016
1 by 2016
-AUC reports
-PAU Rectorate
reports
-Reports from
PAU institutes
-Project progress
report
AUC reports
Reports from
PAU institutes
Project Progress
report
Risk: (Low). Lack of support
from the higher education
community, including
resistance to change by
academics. Mitigation:
Further stakeholder
consultations, transparency in
selection of institutions
participating in thematic
networks; strategy to inform on
PAU goals and the aims.
Risk: (Medium). Lead donors
fail to honor the expected
technical and financial support.
Mitigation: Lead Thematic
Partners are committed and
have signed MOUs with the
AUC. They have beene
involved in all stages of the
PAU design process..
Risk (Low). Host countries &
universities fail to meet
expected financial
commitment. Mitigation.
Financial responsibility is
understood by host countries
who are making adequate
budget allocations
Result 2: Improved
quality of Higher
Education at regional
level creating increased
links with the labor
market
2.1. PAU Programs and curricula certified
by a quality assurance systems
Nonexistent in 2011
Quality assurance system
functioning in PAU by 2014
Result 3: Improved
equitable access to
quality higher education
in S&T fields
3.1 Evolution of student enrollment
3.2 Regional distribution of PAU students
(gender disaggregated)
3.3. % of female students in PAU
institutes
None in 2011
NA in 2011
None in 2011
1064 students enrolled in
MSc programs & 486 in
PhD programs by 2018
A minimum of 80% of
enrolled in a regional PAU
institute students come
from countries other than
hosts in 2016
40% by 2087
Result 4: PAU
institutions have
diversified sources of
revenues
4.1. Number of PhD financed by private
sector
4.2. Number of consultancies for private
sector
0 in 2011
0 in 2011
50 by 2018
4 per thematic area by year
in 2018
Result 5: PAU
Institutions achieve
world class status
(teaching & research)
5.1. Average scientific productivity of
PAU Teachers and students
5.2. International Ranking of PAU
Institutes and satellite centers (Number in
top 1000)
0.47 paper per
researcher per year
None in 2011
1.5 paper/researcher/year
(STI)
At least 10 PAU institutes
and satellite centers by 2018
OU
TP
UT
S
Output 1.1: Thematic
hubs operational
1. Number of Lead thematic hubs
operational as executing organs
2. Number of centers by thematic
networks
None in 2011
None in 2011
3 in 2013
At least 5 by network in
2018
Risk. (Low). The students are
overwhelmingly males and it
proves very difficult to recruit
females. Mitigation:
Information campaigns to
attract female candidates;
specific scholarship quotas
allocated to female candidates
Risk: (Low). Difficulties in
attracting high profile teachers
for the PAU programs
Mitigation: Recruitment
process based on best practices
with attractive salary and
incentive package.
Risk (Low). Brain Drain (PAU
students join European or
American universities after
Master) for further studies and
research. Mitigation. Students
commit to work for a number
of years or reimburse
scholarships and other
expenses. Establish conditions
to help PAU graduates initiate
start-ups. Strategic links with
industry and other employers,
e.g. through open days and
career days
Output 2.1: staff and
student exchange
operational
Proportion of PAU institutions with
operational exchange programmes
0 in 2011 100% in 2018
Output 2.2: diverse high
level skills available
1. Number of students graduating annually
by fields
2. Proportion of women among graduates
0 in 2011
-
- 794 Masters degrees and
231 PhD degrees awarded
by 2018
- At least 40% by 2018
Output 2.3: Curricula
developed for each of
the 3 thematic areas
1. Number of curricula developed and
implemented
2. % of curricula developed with private
businesses
11 in 2012
0% in 2012
17 by 2015
10% in 2018
AUC reports
PAU Rectorate
and institutes
reports
Project progress
reports Output 2.4: Qualified
staff available
Proportion of required staff in place for
each area
0 in 2011 100% by 2014
Output 3.1: Increased
enrolment to
postgraduate S&T
programs
Evolution of student enrolment in
PAUSTI, & PAULESI
0 in 2011
(2012 figures
pending)
100 annually by each PAU
institute from 2014
Output 3.2. Increased
participation of female
students in PAU S&T
fields
1. % of female students in PAU S&T
institutes
2. % of ADF financed scholarships
allocated to PAU female students
3. Study on the gender situation in higher
education in Africa completed
None in 2011
None in 2011
None in 2011
Minimum 40% in 2018
Minimum 50% from 2014
Report completed with
recommendations in 2014
Output 3.3: Student
financial support
scheme established
Proportion of new students by gender
awarded a scholarship each year
None in 2011 100% by 2013 (male and
female) during first five
years
vi
Output 4.1: Enhanced
private sector
involvement
1. Proportion of PAU institutes with
Incubators operational and functioning
with private support
2. Number of training sessions organized
under contract
3. Number of projects/activities sponsored
by the industry
None in 2011
None in 2011
None in 2011
3 by 2018
5 per year per thematic
institute from 2016
2 per year from 2015
Output 5.1: Research
and innovation
enhanced
1. Number of Patents for each Thematic
Hub
2.Number of referee journal by thematic
hub
2. Number of articles in refereed journals
None in 2011
None in 2011
None in 2011
At least 10 per hub from
2016
At least one in 2018
At least 2 per researcher
from 2016
AC
TIV
ITIE
S B
Y
CO
MP
ON
EN
TS
Components
Component 1. Support to Science and technology programs (PAUSTI & PAULESI)
The East and West African Hubs, in Nairobi and Ibadan, will be supported through strategic and business plans; Curriculum development;
Additional infrastructures (equipment); Students and Teachers exchange programs; Student scholarship program ; Partnerships with research
institutions and industry; IT networking.
Component 2. Support to Governance and regional integration program (PAUGHSS)
The Central African hub, in Yaoundé, will be supported through Teacher and researchers exchange program; Student exchange program; Distance
learning; IT networking as well as Strategic and business plans; Curriculum development.
Component 3. Support to PAU Administration and Project Management
Finalization of PAU Administrative structure; Sensitization on governance structure ; Staff recruitment and training ; IT based administrative and
financial procedures, including MIS; Equipment ; Technical assistance ; Operating costs ; PAU IT Network; Impact evaluation; baseline and thematic
studies; innovative financing of higher education and research including academic chairs
Resources by component
(UA million)
Total ADF
Component 1 : 78.65 19.23
Component 2 : 14.67 4.00
Component 3 : 9.51 6.77
Total 102.83 30.00
Sources (UA million):
ADF: 30.00; AUC: 44.26;
Governments: 17.93; Other
partners: 10.64
vii
PROJECT TIME FRAME
The project will start in the beginning of 2014 and is expected to be completed at the end of 2018. The summary project time frame is provided in the
figure below.
1
REPORT AND RECOMMENDATION OF MANAGEMENT
TO THE BOARD OF DIRECTORS ON A PROPOSED GRANT TO SUPPORT
THE PAN AFRICAN UNIVERSITY PROJECT
Management submits the following Report and Recommendation on a proposed grant for UA
30.00 million on Multinational Regional Public Good (RPG) to finance the Support to the Pan
African University (PAU) Project, in accordance to the Strategic and Operational Framework
for Regional Operations, March 2008 and Regional Integration Strategy 2009-2012.
I – STRATEGIC THRUST & RATIONALE
1.1 Project linkages with relevant strategy and objectives
1.1.1 The project falls within the overall vision of the African Union and has been
endorsed by African governments at the highest level. The PAU has strong political
endorsement from Heads of States, the Conference of the Education Ministers of the AU
(COMEDAF) and the Governments of Kenya, Cameroon and Nigeria. It is in line with the
AU’s Plan of Action for the Second Decade of Education (2006-2015), its 2009-2012
Strategic Plan, its the draft 2014-2017 Strategic Plan as well as the Consolidated AU’s and
New Partnership for African Development (NEPAD)’s Action Plan for Science and
Technology. Furthermore, the Nairobi Declaration (April 2012) at the First African Science,
Technology and Innovation (STI) Forum endorsed the PAU and called on African countries,
the donor community and specifically the Bank, to support this initiative. Box 1 below briefly
presents the AU’s regional priorities in higher education.
Box 1: AU’s Higher Education priorities Higher Education falls under Pillar 2 “Development, Integration & Cooperation” of the AU’s Strategic Plan 2009-2012 and
is in line with the draft Strategic Plan 2014-2017 This pillar aims to enhance Research & Development institutions, and
coordinate technological development and dissemination. The Education plan of action for the Decade (2006-2015)
recognizes the role of knowledge and innovation in the world economy, and the role of higher education as a core resource
base for the attainment of the Millennium Development Goals and highlights the need to fully exploit the “potential of
higher education to provide African-led solutions to African problems in the spirit of Africa’s collective vision”. Within this
context the priorities defined for Higher Education for the Second Decade of Education in Africa are the following: (i)
Promotion of research and original knowledge production in Higher Education; (ii) Promotion, development and assurance
of quality in African Higher Education in all its dimensions, including the development and ratification of Regional and
Continental Qualification Frameworks (such as the Arusha Convention) to facilitate mobility of students and staff; (iii).
Increased involvement of universities in the continent’s development efforts, including the development of the lower levels
of education; and (iv). Ensuring appropriate levels of funding for Higher Education.
Source: AU: Strategic Plan 2008-2012; Education plan of action for the decade (2006-2015)
1.1.2 The project is also in line with the Bank’s priorities. Skills and Technology and
Regional Integration are 2 or the -5 core operational priorities of the Bank’s 2013-2022
Strategy focusing on Africa’s economic transformation. Furthermore, Higher Education
Science and Technology Strategy (2008) and the the Human Capital Strategy under
preparation highlight the need to strengthen higher education, technology and vocational
training to assist the countries develop adequate skills to enhance competitiveness and youth
employment. The PAU has the potential to contribute to addressing these priorities.
1.1.3 The project responds to the orientations of the forthcoming Human Capital
Strategy. The three building blocks of the HCD strategy are: i) improving competitiveness
and employment opportunities, ii) value for money and accountability in service delivery and
risk protection, and iii) inclusion and social cohesion. The PAU aims at upgrading selected
existing higher education institutions in Africa, creating a network of researchers among
universities towards a highly skilled workforce and increased access to higher education for
the poorest students. Within this context, new approaches will guide the Bank’s investments
2
in higher education focusing on (i) skills development to support job creation and private and
public sector investments in infrastructure and other economic sectors; (ii) better matching the
supply and demand for skilled workers to address youth unemployment in Africa; (iii)
strengthening of Science and Technology including scientific research and innovation work
being carried out by regional African Networks of Excellence; and (iv) promoting
cooperation and regional integration through regional centers of excellence and regional
networks of knowledge.
1.1.4 The training and research areas selected for the PAU are Basic Sciences,
Engineering, Earth and Life Sciences, Environment, Energy, and Governance, which
are priority areas for individual countries and the regions. The CSPs for the 3 host
countries (Cameroon 2010-2014; Kenya 2008-2012 extended to 2013; Nigeria 2013-2017)
cover areas such as Infrastructure, Agriculture and rural development, Human Development,
Governance and Private sector development, which are all relevant to the thematic priorities
of the PAU. Furthermore, the Regional Integration Strategy Papers (RISPs) for Central
Africa, West Africa and East Africa stress the need for capacity building to support the
implementation of the regional integration agenda focusing on development of infrastructure
and trade facilitation.
1.2 Rationale for Bank’s involvement
1.2.1 African countries have the lowest ratio of scientists and engineers in R&D and
the PAU holds the promise to create a cadre of scientists and engineers and build
knowledge societies in Africa. While Africa accounts for 13.4% of world population, its
production of knowledge is only 1.1% of world
scientific knowledge2
. Out of 4 million scientific
papers, the share of African scientists is only 1.8%.
Only three African universities have ranked among
the Top 500 universities in the world. On average,
countries in Africa have 35 scientists and engineers
per million inhabitants compared to 168 for Brazil,
2457 for Europe and 4103 for the United States.
Tertiary students from Sub-Saharan Africa are still
among the world’s most mobile. In 2010, they were
260 000 studying abroad, representing 4.9% of all students in Africa3. This situation is mainly
due to the lack of high profile institutions in the fields of science, technology, engineering and
mathematics (STEM) and to the low proportion of students in scientific fields as compared to
other parts of the world (Figure 1). By offering
training at post-graduate level (Masters and PhD), the
PAU aims to create centers of excellence in STEM
and boost the innovative capacity of Africans to adapt
to the changing needs of the global economy.
Furthermore, supporting and facilitating intra-African
mobility of highly skilled persons through the PAU
will be a key element in strengthening regional
integration and addressing the brain drain challenge.
2 NEPAD (2010), “African Innovation Outlook”
3 UNESCO-UIS, (2012), Opportunities Lost: Impact of grade repetition and early school leaving; UNESCO-
BREDA, (2009), Access to Higher Education in Africa
3
1.2.2 Although African countries invest an increasing proportion of GDP per capita in
higher education, unemployment of graduates indicate inefficiencies. It is estimated that
the unit cost of public higher education in Africa (in GDP per capita unit) is 2.06 as compared
to 0.67 for OECD countries4. For individual countries, this unit cost varies from 0.18
(Mauritius) to 6.43 (Ethiopia). Furthermore as indicated in Figure 2, a large proportion of the
active population aged 25-34 with higher education level of training are unemployed (25%) or
employed in the informal sector (20%). Investing in skills development in science and
technology fields will address these inefficiencies by improving the relevance of the training
and the job market needs.
1.2.3 The PAU is a Regional Public Good (RPG) and is in line with the Bank’s
regional integration strategy (2009-2012). This strategy recommended the mainstreaming
of regional public goods in Bank’s operations. The project also conforms to the Regional
Integration Strategy Papers (RISPs) for Central, East and West Africa for 2011-2015 which
all highlight the need for human capacity building as a major pillar. More specifically, the
PAU will accelerate the regional approach through the promotion of regional integration and
cooperation in Africa and the increasing mobility of skilled labor. The PAU will service all
African countries through a network of thematic centers of excellence with the extensive use
of open and distance training using broadband connectivity. The PAU statute provides that
the working languages of the PAU are French, English and Arabic (Article 21). In this regard
no qualified student will be excluded either on the basis of language or country of origin. The
PAU Institutes are required to provide language training (French or English) to students from
other linguistic areas to assist them to fully participate and resources are allocated in the
scholarship package to cover these expenses. The scholarship scheme will offer the same
opportunities to all qualified candidates. In addition, the proposed project satisfies the
conditions defined in the Bank’s Strategic and Operational Framework for regional operations
(2008) as well as all seven criteria for a Regional Public Good (RPG). The detailed test for
RPG eligibility is attached (Appendix 1). In line with its RPG approach, the Bank’s
intervention will play a key catalytic role for the PAU.
1.2.4 There is complementarity between the Bank’s support to the PAU and other
similar programs financed by the Bank. Such projects have supported regional higher
education programs including the WAEMU countries (Project in support of Higher
Education and Research); ECOWAS (through Support to AUST Abuja and the Water &
Environment institute (2Ie) in Ouagadougou); the African Virtual University (AVU) (Phases
1 and 2), and the African Economic Research Consortium (AERC) etc.
Some of the institutions supported through regional operations as well as those
supported through national operations (the Kigali Institute of Science and Technology
and Carnegie Mellon University in Rwanda), could later qualify as affiliate PAU
“thematic centers for excellence”.
Most other Bank financed projects or programs support undergraduate and graduate
levels which prepare students to qualify for admission into post graduate training in
the specific fields of the PAU.
There is a similarity between the objectives pursued by the PAU and those of the
AERC’s Collaborative Masters and PhD programs in Economics, i.e. (a) individual
capacity building; (b) institutional capacity building; (c) enhancement of the relevance
of curricula, theory, teaching and research on "African problems in search of African
solutions”; and (d) efficient management of the programme. However, the delivery
context of the PAU is a formal university organized around 5 specific programme
4 Source : Education Sector Analysis Unit (UNESCO-BREDA) and calculations based on data from OECD and WDI 2011
4
areas, with its own network of lead thematic Institutes and thematic centers of
excellence.
1.2.5 The Project will complement and support the African Union’s Programme for
Infrastructure Development in Africa, 2012-2040 (PIDA). The PIDA which was
developed with the Bank’s assistance focuses on Energy, Transport, Water, and Information
and Communication Technologies (ICT) which are all PAU programme areas. The
production of high level skills and knowledge by the PAU will contribute to the
implementation and sustainability of the PIDA.
1.3 Donor coordination
1.3.1 The PAU concept is built on partnerships involving the AUC, Regional Economic
Communities (RECs), development partners, host countries and universities. Several
donors are involved as Lead Thematic Partners (LTP) of the PAU’s thematic institutes. Each
LTP is expected to support coordination of PAU partners by providing substantial technical
assistance as well as mobilize resources for the particular thematic network it is involved in.
In this context SIDA (Sweden) is already working with the AUC as the LTP for the PAU
thematic Institute for Governance, Humanities and Social Sciences at the University of
Yaounde II. As LTP, JICA (Japan) is already supportingthe PAU Institute for Science for
Sciences, Technology, and Innovation at the Jomo Kenyatta University of Agriculture and
Technology in Nairobi (JKUAT). India has agreed to be the LTP for the West African
thematic Institute on Earth and Life Sciences at the University of Ibadan (Nigeria). SIDA and
GIZ (Germany) have established units for coordinating support for the PAU in their countries.
1.3.2 The AUC has already received financial assistance from several development
partners to support the operationalization of the PAU. This support aims to prepare the
way for their more substantial support. In this regard, SIDA is envisaging providing USD
5.00 million a year to the PAUGHSS for five years. During the project design process, the
Bank has coordinated closely with prospective LTPs, namely SIDA and JICA and has had
joint missions with these institutions during this process. Table 1.1 below presents support
provided by some development partners in the preparation phase. GIZ (Germany) is designing
its specific support to the PAU Institute in Algeria.
Table 1.1: Contribution of development partners to initial phase
Partners Amount (in UA equivalent) Period
EU 887,000 2010-2012
GIZ 2,459,000 2011-2014
SIDA 452,000 2011-2012
II – PROJECT DESCRIPTION
2.1 Project components
2.1.1 Project design (components). The project will support the establishment of the
PAU management structure as well as the three PAU regional institutes established in
Cameroon, Kenya and Nigeria. The three thematic programme areas covered by the
institutes are as follows:
5
Table 2.1: List of programs by PAU thematic institute
PAUSTI (Nairobi)
Basic Sciences, Technology and
Innovation
PAUGHSS (Yaoundé)
Governance, Humanities
and Social Sciences
PAULESI (Ibadan)
Life and Earth Sciences
1. Mathematics, with 3 options: Applied,
Computing, Financial
1. Governance & regional
integration (integrated
program)
1. Geosciences with Mineral petroleum
Geology and Mineral exploration
Geology options
2. Molecular Biology and Biotechnology 2. Interpretation & Translation 2. Environmental Management
3. Electrical and Electronics Engineering 3. Plant Breeding
4. Civil Engineering and Construction 4. Health Sciences with Reproductive
Health Sciences and Reproductive
Biology options
2.1.2 Table 2.2 below presents a brief description of the project components.
Table 2.2: Project components
Component
No. and name
Cost in million UA,
(ADF in brackets)
Component description
1. Support to
Science and
Technology
programs.
78.65 (19.23) This component will support two thematic areas (subcomponents) of the
PAU. These include: (i) Basic sciences, Technology and Innovation, the
East African Hub (PAU-STI) hosted by the Jomo Kenyatta University in
Nairobi; and Earth and Life Sciences including health and agriculture, the
West African Hub (PAULESI) hosted by the University of Ibadan in
Nigeria. Activities will include: preparation of the strategic and business
plan; curriculum development; provision of additional equipment and
books; students and teachers exchange program; student scholarships;
building partnerships with research institutions and industry; IT
networking; building capacity in procurement and management of
programs; promoting e-health and m-health; supporting linkages with
private sector; e-learning content development
2. Support to
Governance
and Regional
Integration
Programs
14.67 (4.00) This component will support the Central African thematic hub
(PAUGHSS) hosted by the University of Yaoundé II, in Cameroon.
Activities will include: preparation of the strategic and business plan;
curriculum development; provision of additional equipment and books;
students and teachers exchange program; student scholarships; building
partnerships with research institutions and industry; IT networking;
building capacity in procurement and management of programs;
supporting linkages with private sector; e-learning content development
3. Support to
PAU
Management
and Project
Implementation
9.50 (6.77) Activities will include: Operationalization of PAU Administrative
structure; sensitization on the structure; staff recruitment and training ; IT
based administrative and financial procedures, including MIS; technical
assistance ; establishment of the PAU IT platform; impact evaluation;
baseline and thematic studies; linkage with private sector.
2.1.3 Component 1. As indicated in table 2.1 above, this component supports the PAU
institutes established in West and East Africa. Activities will include: curriculum and course
development, lab and workshop equipment, broadband ICT platform (networking equipment;
connectivity; training technical staff for maintenance), library equipment and material, teacher
and researcher exchange programs, linkages with the industry including the creation of
conditions for incubation and emergence of start-ups leading to more small and medium
enterprises (SMEs) and new jobs. The private sector and the industry will be involved in
design and delivery of programs and curricula including providing of instructors and receiving
student interns, which will enhance relevance of the skills produced by the PAU. Networking
of the PAU institutions as well as distance learning will be enhanced through the establishment
of the PAU IT platform. Under this component the project will support, initial networking
activities as well as content development for the e-learning within the context of the PAU IT
Platform.
6
2.1.4 Component 2. This component will support the Central African thematic hub
(PAUGHSS) hosted by the University of Yaoundé II, in Cameroon. Activities include: the
preparation of the strategic and business plan; curriculum development; provision of
additional equipment and books; students and teachers exchange program; student
scholarships; building partnerships with research institutions and industry; IT networking;
building capacity in procurement and management of programs; supporting linkages with
private sector; e-learning content development.
2.1.5 Component 3: PAU Management and Project Implementation. This component will
support the implementation of the overall PAU management structure and the
execution of the specific ADF-financed project. The PAU was established by Decision AU
Dec.290 (XV) of the Ordinary Assembly of the AU in July 2010. The Statute establishing the
PAU, was officially adopted by the AU General Assembly on 28th
January 2013 in Addis
Ababa [Decision ASS/AU/Dec.451 (XX)] and is effective. The PAU management structure
consists of a University Council, a Rectorate coordinating the thematic hubs and a Senate (as
described in the PAU Statutes (Technical Annex C.5). The University was officially launched
by the AU in December 2011. The Thematic Institutes in each host university are under the
administrative and academic responsibility of the PAU and its organs. The Acting Rector and
the Directors of 3 thematic institutes have been appointed.
2.1.6 The implementation of the ADF-funded project will be the responsibility of the
AU’s Department of Human Resources, Sciences and Technology in coordination with
thematic institutes and their host universities. The PAU is an AU’s entity under the
overall administrative oversight of the Department of Human Resources, Science and
Technology (HRST) headed by the Commissioner for HRST. The HRST Department has
technical and professional staff including a Director, and 3 division chiefs and their staff and
is currently coordinating the operationalization of the PAU. The MOU signed between the
AUC and each host university specifies the services to be provided by host universities within
the context of the PAU thematic institutes, in coordination witth the PAU Rectorate. The
project will, through technical assistance, support the HRST Department and the thematic
institutes and their host universities in the implementation of project activities. The
implementation structure for the project is presented in appendix II (A).
2.1.7 The project will strengthen the PAU management structure through several
activities. These activities include: the sensitization of the partner institutions, staff training;
establishing IT based administrative and financial procedures, including Management
Information System (MIS) and studies to define several reform strategies including those
related to qualification framework, innovative financing, the application of IT for content and
service delivery. Furthermore, business plans will be prepared/updated and impact evaluation
activities will be conducted. Under this component the PAU IT Platform as well as
networking activities will be designed.
2.2 Technical solution retained and other alternatives explored
2.2.1 The technical solution retained consists of implementing the PAU as a network of
existing higher education institutions which are excellent in teaching and research in the
target thematic areas. The solution aims at building a new model of higher education in
Africa with an expected substantial impact on the host universities. This technical solution
seems one of the most appropriate considering the constraints and challenges faced by higher
education systems in Africa.
7
2.2.2 The alternatives considered in designing the project and reasons for rejection are
provided in table 2.3.
Table 2.3: Project alternatives considered and reasons for rejection
Alternative
name
Brief description Reasons for rejection
Establishment
of a Pan
African
University as a
new institution
This alternative consists in building a
new university in each of the regional
hubs with its own infrastructure, staff
and facilities. Such universities will
be free to set their own programs and
curricula.
Costs for the establishment of the universities will be
high for the host countries. The PAU will become
operational after several years with its own
infrastructure, staff and facilities. The regional
cooperation and integration objective will be missed.
Establishment
of foreign
Universities in
Africa in the
chosen
thematic areas
The alternative solution is to have
foreign universities establish and
operate a branch campus in an
African country.
This solution does not contribute to improvement of
quality, relevance, competitiveness of African
universities and their progress towards world class
institutions. Neither does it promote regional mobility
of students, teachers and researchers. This option also
excludes regionally sponsored scholarships which
constitute a major opportunity for qualified students
from disadvantaged groups.
2.3 Project type
2.3.1 The project is a standalone regional investment operation presented as a
Regional Public Good. The programs to be delivered by the PAU will be available for all
African countries that will benefit from post graduate training and research in key areas. As
such it is a public good for the region, satisfying the conditions defined in the Bank’s
Strategic and Operational Framework for regional operations.
2.3.2 The detailed test for Regional Public Good eligibility (Appendix I) indicates that
the proposed operation satisfies all seven criteria: (i) it has non rival character; (ii) it does
not exclude any AU member country and provides a unique opportunity for high level
training and research for all qualified persons; in this regard, a scholarship scheme will be
established so that no qualified candidate be excluded for lack of financial resources; (iii) it
has public interest and is owned by the AU to serve the entire continent; (iv) it has regional
dimension; (v) it is strategically aligned to the Bank’s strategic focus; (v) the Bank is playing
a key catalytic and upstream role by contributing this initial investment; and (vii) the project
has incremental benefit since it aims to establish an advanced training, education, research
and innovation capacity in Africa to promote effective governance and stimulate economic
growth. Furthermore, language training (French or English) will be offered to students from a
different linguistic background than the institution where they are admitted, to provide them
with the language proficiency level required for training and research
2.4 Project cost and financing arrangements
2.4.1 The total cost of operating the PAU five years (2014-2018) is estimated at USD
154.24 million (UA 102.83 million). Of this amount consisting of 63% foreign exchange,
USD 45.00 million (UA 30.00 million) is the proposed ADF grant to the AUC, USD 109.24
million (UA 72.83 million) will be contributed by the AUC, host countries and LTPs. The
ADF grant will support all components exclusive of construction works which is the
responsibility of host countries.
2.4.2 Details of cost are presented in the tables below. Tables 2.4.1, 2.4.2 and 2.4.3
present estimated project costs by components, financing sources and categories of
expenditure. Table 2.4.4 shows the expenditure schedule by component and table 2.4.5 the
8
expenditure categories by financing sources. Costs have been estimated on the basis of data
obtained from the needs assessment and estimates by the host universities. Incorporated in the
cost estimates are 12% of physical and price contingencies on local and foreign currency.
Based on current estimates, contributions from other sources represent 44.26% by the AUC,
17.43% by host countries and 10.30% by other partners. Scholarships (which include tuition)
represent 50% of total cost and the AUC has confirmed by writing to the Bank its
commitment to mobilize necessary resources to finance 85% of scholarships needed for all
students admitted to the PAU during the first five years. It is estimated that at the end of this
investment and initial operation period, the PAU will become sustainable on tuition paid by
students, subsidies and services provided. The sustainability is further examined in section 4.4
below and in technical annex B.8.
Table 2.4.1 (a): Project cost estimates by component (in UA million)
(USD Million)
(UA Million) % Foreign
Exchange Components Local Foreign Total Local Foreign Total
1. Science & Technology programs (PAUSTI
ET PAULESI) 34,54 69,48 104,02 23,03 46,32 69,34 67
2. Governance and regional integration
programs (PAUHGSS) 7,49 12,07 19,56 5,00 8,04 13,04 62
3. PAU Management and project
implementation 8,20 5,08 13,27 5,47 3,38 8,85 38
Base cost 50,23 86,62 136,85 33,49 57,74 91,23 63
Physical Contingencies 3,41 6,62 10,03 2,28 4,41 6,69 66
Price Contingencies 2,75 4,61 7,36 1,83 3,07 4,91 63
Total Cost 56,40 97,84 154,24 37,60 65,23 102,83 63
Table 2.4.1 (b): Project cost estimates by component (in UA million) - ADF financing
Components Total costs % of component
1. Science & Technology Programs (PAUSTI & PAULESI) 19,23 24,4
2. Governance & Regional Integration programs (PAUGHSS) 4,00 27,3
3. PAU Management and Project Implementation 6,77 71,2
Total cost 30,00 29,2
Table 2.4.2: Sources of financing (in UA million)
ADF AUC Governments Other donors Total
Amount % Amount % Amount % Amount % Amount %
Foreign 18,24 28,1 28,30 43,6 11,38 17,52 7,01 10,8 64,93 63,1
Local 11,77 31,0 15,96 42,1 6,55 17,28 3,63 9,6 37,90 36,9
Total 30,00 29,2 44,26 43,0 17,93 17,43 10,64 10,3 102,83 100,0
Table 2.4.3 (a): Project cost by category of expenditure (in million)
Category of expenditures USD UA
% For
Exch
Local Foreign Exch Total Local
Foreign
Exch Total
A. Works 1,88 3,48 5,36 1,25 2,32 3,57 65
B. Goods 5,04 20,16 25,20 3,36 13,44 16,80 80
C. Services 6,75 15,75 22,49 4,50 10,50 15,00 70
D. Operating 12,87 3,22 16,09 8,58 2,15 10,73 20
E. Miscellaneous Scholarships, Research grants) 23,70 44,01 67,70 15,80 29,34 45,13 65
Base cost 50,23 86,62 136,85 33,49 57,74 91,23 63
Physical Contingencies 3,41 6,62 10,03 2,28 4,41 6,69 66
Price Contingencies 2,75 4,61 7,36 1,83 3,07 4,91 63
Total cost 56,40 97,84 154,24 37,60 65,23 102,83 63
9
Table 2.4.3(b): Project cost by category of expenditure (in UA million) - ADF financing
Categories of expenditures Total costs % of category Foreign Exch Local Currency
Works - -
Goods 6,44 34,1 5,15 1,29
Services 9,72 61,4 6,81 2,92
Operating 5,36 46,1 1,07 4,29
Miscellaneous (Scholarships, Research grants) 8,48 16,2 5,51 2,97
Total cost 30,00 29,2 18,54 11,46
2.4.4 Table 2.7 shows the expenditure schedule by component and Table 2.8 the
components by financing sources.
Table 2.4.4: Expenditure schedule by component (in UA million)
Components 2014 2015 2016 2017 2018 Total
1. Science &Technology Programs
(PAUSTI & PAULESI) 10,58 16,64 18,18 16,65 16,60 78,64
2. Governance & Regional
Integration programs (PAUGHSS) 2,13 3,01 2,91 3,27 3,35 14,67
3. PAU Management and Project
Implementation 2,37 2,15 1,49 1,72 1,78 9,51
Total project cost 15,09 21,80 22,58 21,63 21,73 102,83
Table 2.4.5: Categories of expenditures by financing sources (in UA million)
Expenditure ADF AUC GOC GOK GON
Other partners
(LTP) TOTAL
Category Amt % Amt % Amt % Amt % Amt % Amt % Amt %
A. Works - - - - 0,32 8,0 0,67 16,6 3,05 75,5 - - 4,04 3,9
B. Goods 6,44 34,1 0,09 0,5 0,68 3,6 3,85 20,4 2,51 13,3 5,29 28,1 18,87 18,3
C. Services 9,72 61,4 - - 0,67 4,2 1,31 8,3 1,51 9,6 2,63 16,6 15,84 15,4
D. Operating 5,36 46,1 1,07 9,2 1,00 8,6 1,25 10,8 1,10 9,4 1,84 15,8 11,62 11,3
Miscellaneous Scholarships,
Research grants) 8,48 16,2 43,10 82,2 - - - - - - 0,87 1,7 52,45 51,0
TOTAL 30,00 29,2 44,26 43,0 2,67 2,6 7,08 6,9 8,17 7,9 10,64 10,3 102,83 100,0
GOC: Government of Cameroon; GOK: Government of Kenya; GON: Government of Nigeria
2.5 Project’s target area and population
The PAU is intended to serve all African countries, a population of 1.1 billion. All
African graduate students may benefit from PAU. This project aims at fostering the
mobility of African researchers. All higher education teachers and researchers may also
benefit from PAU through the exchange programmes, interactions with academic and
scientists from institutions in Africa and abroad. A scholarship program will be established to
provide financial support to all students admitted to the PAU during the first five years.
Through sensitization and communication on the PAU, the AUC and the Rectorate will
endeavor to attract female student candidates, the objective being to reach at least 40%
participation after 5 years of operation. The research grants provided through the projects will
offer African researchers resources to improve their research productivity and publications.
Projections of enrollment and graduation indicate that during the first five years, the PAU will
admit in the 3 institutes 1064 students in Masters programmes and 486 in PhD programmes
and award, considering a wastage of 10%, 794 Master degrees, (with one cohort in second
year Master programmes) and 231 PhD degrees (with two cohorts in second and third years of
doctoral programmes), including 40% females. Details of the projections are provided in
Technical annex B3. All national communities will benefit from the PAU through the highly
specialized graduates who will contribute to addressing development issues.
10
2.6 Participatory process for project identification, design and implementation
2.6.1 The project was designed through a participatory process involving major
stakeholders. Consultative meetings were held with the AUC, development partners, RECs,
host countries’ authorities. Meetings were organized with academic and administrative
authorities of host universities and their entities involved in programs to be delivered by PAU
Institutes. The ADB team met with all the above mentioned stakeholders during the
preparation in October 2011, and the appraisal and reappraisal respectively in March 2012
and March 2013. The following development partners were met in Addis Ababa: Germany,
Italy, Luxembourg, Turkey, India, European Union, JICA and SIDA.
2.6.2 The ADB Team worked closely with the development partners identified as Lead
Thematic Partners (LTP). The PAU project document provides that “each thematic network
of PAU Institutes and Centers shall have a team of dedicated partners to be coordinated by a
Lead Thematic Partner (LTP), committed to nurturing and providing substantiated technical
support and mobilizing resources for the particular thematic network”. In this regard, the
AUC approached several potential donors. Japan, Sweden and India have agreed to be the
LTP, respectively for the PAUSTI network (Nairobi), the PAUGHSS (Yaoundé) and the
PAULESI (Ibadan). JICA joined the ADB team in Nairobi for the preparation and appraisal
missions in Kenya and SIDA for the preparation mission in Cameroon. The PAU was
presented by the AUC at the STI Forum in Nairobi in April 2012 and was endorsed by
international institutions, the Ministers of Education and Finance and private sector (Nairobi
Declaration).
2.7 Bank Group experience, lessons reflected in project
2.7.1 The Bank has several regional experiences in higher education from which
lessons have been drawn for this Pan African University (PAU) support project.
Previous operations include (i) the completed African Virtual University Project which has
supported countries in West, Central, Eastern and Southern Africa and the recently approved
Phase 2 support; (ii) the Higher Education Support Project in the West African Economic and
Monetary Union (WAEMU) covering eight countries in West Africa; and (iii) the Support to
a Network of Institutions of Higher Education Project covering Economic Community of
West African States (ECOWAS) countries. The AVU Phase 1 has established the largest
network of Open Distance and e-learning institutions in over 30 Sub Saharan African
countries. The project completion report indicated a successful project which has even won
the 2011 ‘Education-Portal.com’s prize. Phase 2, approved in 2011, is in progress. The
ECOWAS and WAEMU projects are ongoing. They have experienced implementation delays
mainly due to delayed start up in general, and also to initial weakness of the central
coordination unit in the case of the WAEMU Project. Other relevant African regional
institutions are Institut Africain d’Informatique (IAI) in Libreville, Ecole Inter-Etat de
Sciences et Medecine Veterinaire (EISMV) in Dakar, established as joint ventures by several
African countries, which suffered serious difficulties due to lack of continuous support from
these countries.
2.7.2 There is potential for synergy and complementarity between this project and the
regional projects previously financed by the Bank. The Bank has supported the African
Economic Research Consortium (AERC) which delivers postgraduate training through the
Collaborative Masters and PhD programs in Economics. Meetings with the AERC and AVU
Management involved discussions on their experience in working with networks of
universities for postgraduate programs and managing scholarships. There is similarity in
recognizing the need to build on networks and existing institutions. In April 2012 the AUC
11
signed an MOU with the AVU, paving the way for cooperation in the area of eLearning.
Furthermore, graduates from WAEMU universities and the ECOWAS institutions supported
through the projects mentioned above are potential candidates for relevant PAU post graduate
programs.
2.7.3 Lessons learnt from these experiences have been considered in designing this
project. Lessons have highlighted the need to directly involve the institutions as main
executing organs in order to increase ownership, to avoid delays and minimize transaction
cost of central management by the regional economic communities (RECs) and to enhance
sustainability. All these lessons are considered in the design of the project through a multi-
partner arrangement for financing the project; a harmonized regional curriculum development
approach; a clear identification of project risks; and the development/update of business plans
for all the PAU institutes at the start of the project, in order to ensure sustainability and
effectiveness as well as sector policy harmonization at a regional level.
2.8 Key performance indicators
Several indicators are proposed to monitor overall performance and are
indicated in the log frame. These include impact, outcome and output level indicators.
Impact indicators: (i) International Ranking of African Universities; (ii) Number of patents by
PAU institutes by year; (iii) Employment of Graduate Students. Outcome indicators: (i)
Student enrolment; (ii) Regional distribution of Students (iii) Proportion of female students;
(iv) Accreditation system in place for the PAU programs: (v) Average Scientific Productivity
of PAU Teachers etc.; Output indicators: (i) Number of Centers by thematic networks; (ii)
percentage of curricula developed with private sector; (iii) number of patents for each
thematic hub: and (iv) number of training sessions for private sector organized under contract.
III – PROJECT FEASIBILITY
3.1 Economic and financial performance
3.1.1 The Project has substantial development impact since it will contribute to
building high level human capital essential for Africa’s competitiveness and
transformation. Hence, for the case of this project, development perspective analysis has
been applied instead of the traditional quantitative methods (Net Present Value, Economic
Internal Rate of Return). This is due to the difficulty to estimate the benefits since all students
trained (graduates) will have homogenous training unit costs for each training institution, but
will eventually join different labor markets. The social and economic benefits are presented in
paragraphs 3.2.5 to 3.27. The assessment of rates of return to Education in the international
context and in Africa indicates higher returns for higher education. A study in Cameroon5
showed that an extra year of schooling (mainly at university level) increased earnings by 0.5
overall (0.53 for males and 0.56 for females)
3.1.2 Private Sector involvement. The private sector is considered as a key partner for
the sustainability of the PAU. It has been involved in the development of the University,
through the project. The private sector was a critical stakeholder for the PAU during the
elaboration of PAU during the programmes in order to ensure the employability of the future
graduates.
5 Aloysius. A. Amin & Wilfried J. Awung, Economic analysis of private returns to investment in Education in
Cameroon (2005)
12
3.1.3 The private sector will continue to have an essential role to play in the successful
running of the PAU. In fact, some of the teaching courses and lectures will be given by
private sector specialists. Furthermore, the private sector will have representatives in the
Project Steering Committee and the monitoring and evaluation of the project. The private
sector is also fully involved in the design and implementation of the internship program and is
expected to offer job offers for future graduates. In addition, in order to further strengthen and
to build a capacity for the involvement of the private sector, coordinators from the private
sector will be recruited at each PAU Institute and at the Rectorate level. The three host
Universities have been traditionally engaged with the private sector and the PAU offers them
an opportunity for strengthening existing partnerships. The project will also support the
university update business plans and programs for collaborating with the private sector. The
PAU project includes an indicator on the involvement of the private sector and how PAU is
responding to its demand. The PAU will provide professional services for the Private Sector,
such has: training, resolving practical problems (PhD thesis subjects),
innovation workshops and seminar consultations.
3.2 Environmental and Social Impacts
3.2.1 Environment .The project, classified as category III, will adhere to the respective
countries’ environmental and waste management guidelines and procedures. Activities
under the project will include equipping existing laboratories and workshops with state of the
art equipment. The host universities have been established for years and have been training at
the level of Masters and PhD in science and technology areas in their labs and workshops,
with waste management policies. Outdated equipment will be replaced with more efficient
equipment and refurbishment of facilities will include the removal of asbestos parts, which
will have a positive impact on the environment. Disposal of outdated equipment will be done
in accordance with the respective National Environment Management Plans if applicable.
Infrastructure development under the project consisting mainly of minor rehabilitation works
will have limited scale. An institutional assessment of the three hosting campuses of the PAU
institutes was carried out and is presented in Technical Annex C3.
3.2.2 Climate Change. The PAU will have a positive impact on climate change and
environment in two ways. Firstly, the specific Program dedicated to environmental
Management will graduate 12 environmental specialists each year (starting from year 2) at the
Masters level and 7 at the PhD (starting from year 3). These highly qualified staff will
improve marginally environmental management in Africa. Some PhD thesis topics as well as
post-doctoral research will be directly linked to climate change. Secondly, through this
training and research the PAU will contribute to building Africa’s capacity to absorb, manage
and adapt new technologies able to help African countries face the challenges of climate
change.
Gender 3.2.3 The World Development Report 2012
(World Bank) « Gender Equality and Development »
indicates that globally girls and boys participate
equally in primary and secondary education, while
in tertiary, a clear bias is emerging that favors
women. Enrolments increase faster for women than
for men at that level. However, women dominate
health and education studies (84%) and men dominate
engineering and sciences (82%).
13
So although girls participate equally (or more) at all education levels, the educational patterns
they chose are remarkably different and stable across countries at very different incomes.
While part of the problem lies in the educational system, these patterns are reinforced by
gender norms in households. The report points out that equal gender participation in different
fields of studies requires simultaneous changes among households, markets, and institutions.
In Sub Saharan Africa (SSA), GER girl/boy parity index in tertiary education is only 0.625
against 1.077 for the entire world. This average figure hides disparities. While the parity
index is only 0.182 in Democratic Republic of Congo and 0.333 in Chad, Eritrea and Mali, it
reaches 1.440 in Algeria and 1.556 in Tunisia. Data from UNESCO (Figure 3) indicate a
wider spread in the relationship between GER and GER Gender Parity in Tertiary Education
in Africa as compared to the World’s average. The current proportion of female in S&T
graduates is between 5% and 18% in Africa. It is expected that women will represent at least
40% of total PAU enrolments.
3.2.4 The PAU will strive towards increased women participation in advanced
postgraduate training and research particularly in STEM. The project will address the
smaller representation of females as compared to males, through wide information on its
programs and by encouraging qualified women to apply for admission. The actions proposed
in this project focus more on admission and retention, since the PAU target population
consists of students holding Bachelor or Master degrees who will pursue academic training
and research at post-graduate level (Master and PhD). The proportion of women is expected
to rise to 40% by 2015 through marketing of the PAU, sensitization and the scholarship
program. In this regard, a minimum of 50% of the scholarships financed by the Bank (i.e. UA
4.3 million) will be for the admitted female students. Furthermore, considering the lack of
comprehensive data on the gender situation in higher education in Africa, the project will
conduct a study to assess this situation thoroughly and propose an agenda for action in line
with the WDR 2012. A consultant gender specialist will be recruited to assist the AUC
organize and monitor the gender component of the project. Technical Annex B9.3 further
discusses the gender equality at higher education level and the actions proposed in the project.
Social and Economic impact 3.2.5 The project will help provide Africa with the skills needed to add value to its
natural resources and enhance its competitiveness and growth while supporting youth
employment. It will establish world-class graduate and post-graduate programs in
engineering, science, technology, innovation and governance. These high level skills are
needed to add value to its natural resources through value chain activities and processing and
enhance its competitiveness and growth. It will result in the constitution of critical masses of
talents in priority areas for Africa, while reducing the brain drain, enhancing mobility within
the continent and regional integration as well as ensuring gender diversity for social inclusion.
The PAU will further contribute to building an absorptive capacity for Africa in new
technologies. All countries will benefit through enhanced mobility of students, lecturers and
researchers. As mentioned in paragraph 1.2.2, a large proportion of the active population
aged 25-34 with higher education level of training are unemployed or employed in the
informal sector. By focusing on skills which are identified as essential for Africa, and
strengthening linkages with the private sector to create conditions for sponsoring R&D and
establishing start-ups, the PAU contributes to addressing the critical issue of unemployment
of graduate youth. The PAU’s thematic areas are viewed as the growth areas with high
demand for skills and will therefore be the “destinations of choice” for the graduates.
3.2.6 It will foster cooperation and regional integration in higher education and
contribute to the emergence of the African Higher Education Space. The PAU which the
project supports furthers the vision of the African Union of an integrated, prosperous and
14
peaceful Africa, especially by the creation of regional Centers of Excellence. The thematic
areas to be strengthened correspond to the areas identified as key for Africa’s development.
The project will establish conditions for partnerships between the AU, RECs, national
governments, African and foreign universities, bilateral and multilateral donors, national and
international private sector. The PAU will through this project be able to serve as a
“developmental university” for the entire continent. To facilitate free movement of academics
and student, the PAU Statutes provide that “All full time professors, lecturers and
administrative staff and of PAU shall be granted with AU travelling privileges according to
AU procedures. Students of the PAU shall travel using their own national passports and
access shall be facilitated by the host countries” (Article 11, paragraphs 5-6). For the first
batch of students, the call for application has already been issued and all channels possible
(website, RECs, country ministries and institutions of higher learning) are used to make the
information available to all eligible African candidates. Institutes in Cameroon and Kenya
have admitted first batch of students in early 2013.
3.2.7 The project further contributes to the advancement of the Paris, Accra and
Busan Declarations on Aid Effectiveness by promoting cooperation and regional
integration through regional ownership of an institution of higher learning. The Bank is
partnering with the AUC, national governments and several development partners to establish
this regional institution of higher learning and research owned by an African organization.
The project is founded on the AU development strategy and will contribute to the
harmonization of national policies and strategies, hence preparing the way for the creation of
the African Higher Education Space in light of the European one triggered by the Bologna
process.
3.2.8 Involuntary resettlement. The activities to be implemented under the proposed
project do not involve any type of resettlement. The PAU institutes are established on
existing university campuses.
IV – IMPLEMENTATION
4.1 Implementation arrangements
Executing Agency and Project Implementation Unit
4.1.1 The overall implementation and coordination of the Project will be under the
AU’s Human Resources, Science and Technology (HRST) Department. The ADF-funded
project seeks to build within the AU and the PAU system capacity to manage and implement
project activities. As mentioned earlier, the Pan African University is an AU’s institution
under the Commissioner for (HRST) who heads the HRST Department. The HRST
Department has technical and managerial staff including one Director and three division
chiefs. The thematic institute will be in charge of implementing their activities with the
assistance of the respective host university. The MOU signed between the AUC and each of
the host universities specifies the services to be provided by host universities within the
context of the PAU thematic institutes. Other development partners assisting the PAU are
operating within these arrangements and working with the HRST Department and the
directors of the thematic institutes. Within the context of the project, the responsibilities of the
Department of HRST will include: organization of Regional Steering Committee meetings,
communication with the Bank on major project issues, preparation and transmission of
periodic technical and financial implementation reports, managing the scholarship
programme, procurement and monitoring of consultant services for activities concerning the
overall PAU System, such as curriculum development and thematic studies.
15
4.1.2 Under the technical supervision of the HRST Department, the thematic institutes
will be responsible for executing their specific project activities with the assistance of the
host university. These include: procurement of equipment, organization of student exchange
and faculty exchange, research grants, recruitment of specific consultant services, preparation
of work programme and annual budget, preparation of periodic technical and financial
implementation reports. These directorates of the PAU institutes consist of the following
professional staff: Director, Deputy Director, Program Officer, Senior Finance Officer, an
Accountant, and a Private Sector Coordinator. Fiduciary and procurement capacity
assessments have indicated the need to strengthen these functions by recruiting a Procurement
specialist for each of them which will be devoted to PAU activities with the assistance of the
appropriate office of the host university. The project has allocated resources to provide
technical assistance to the thematic institutes to carry out these activities. The implementation
structure for the project is presented in appendix II (A).
4.1.3 Role and responsibilities of the host countries and of the Lead Thematic Partners
are formalized in MOUs. These MOUs include (i) an MOU between the AUC and each of
the 3 host governments (Cameroon, Kenya and Nigeria) and (ii) an MOU between the AUC
and each LTP (Sweden, Japan and India). Each LTP is expected to support coordination of
PAU partners, provide substantiated technical assistance and mobilize resources for the
particular thematic network it is assisting. The Statute establishing the PAU was adopted by
the Summit of the Heads of State and Government of the AU on 28th
January 2013 in Addis
Ababa [Decision ASS/AU/Dec.451 (XX)] and is effective. The 3 host country agreements
and 3 LTP MOUs have been signed.
4.1.4 A Regional Project Steering Committee has been established for regional
oversight of the project. It is chaired by the AU Commissioner for Human Resources,
Science and Technology and consists of the PAU Acting Rector, representatives of the AU
Department of Human Resources, Science and Technology, of the RECs, of the COMEDAF
Bureau, the Coordinator of the ADB-ECA-UA Joint Secretariat, the host universities, the
thematic hubs’ directors, representatives of civil society, private sector and women
association. The Steering Committee will provide guidance for the overall implementation of
the project and review progress bi-annually. It will also approve the annual project work plan
and budget prepared by the AUC/HRST, the PAU Rectorate and the PAU institutes. The
Regional Steering Committee was inaugurated in Addis Ababa on 12 October 2012. The
ADB field offices (EARC, ETFO, NGFO, CMFO) will play a key role in technical and
financial monitoring of implementation and provide assistance if necessary.
4.1.5 Disbursement arrangements. All Bank’s disbursement methods will be available
for the Project. The AU will open a Special Account in foreign currency to receive funds
from the Bank to cover Project eligible expenditures. An initial deposit for an amount
corresponding to six months of Project activities, as justified by a work program approved by
the Bank, will be made in the Special Account. Subsequent replenishments of the Special
Account will be subject to the AU having provided sufficient justifications for the use of at
least 50% of the most recent advance and 100% of the other older advances, and upon
production of an agreed work program for the next six months. Direct payments to contractors
and suppliers will be effected, during the course of project implementation, as per the Bank’s
rules of procedure. The three PAU institutes (PAUSTI, PAULESI and PAUGHSS) will
receive funds from the Special Account to be opened at the AU. Disbursement to the three
PAU institutes will be done based on approved work program; and the institutes will provide
regular utilization reports to the AU. The Bank’s Disbursement Letter will be issued
stipulating key disbursement procedures and practices. The Bank will have the right, as
16
reflected in the General Conditions, to suspend disbursement of the Funds if reporting
requirements are not complied with.
4.1.6 Financial Management and audits. Financial management will be handled by the
executing agencies. The financial management capacity assessment of the AUC and the 3
host institutions was conducted. The fiduciary risk assessment of the AUC was based on a
recent assessment done by the World Bank in March 2012 which rated the risk as moderate.
In the case of the AUC, the ADF supervision plan will follow the FM Action plan and the
Implementation Strategy proposed in this report. However, for disbursement of ADF
resources, the AUC will open a separate SA account. Details of the findings and measures
recommended to address specific issues for each case are specified in Technical Annex B.5.
Table 4.1 summarizes the FM risk assessment. The ADB regional fiduciary teams posted in
field offices will provide regular supervision. The consolidated audit report for the Project,
complete with a management letter, will be submitted to the Bank no later than six months
after the end of the year. This is applicable for each year of activity.
Table 4.1: Financial Management risk assessment
Executing agency Level of fiduciary risk
AUC/HRST Moderate
PAUSTI/JKUAT Moderate
PAULESI/UI Moderate
PAUGHSS/UY2 Substantial
4.1.7 Procurement arrangements. All procurement of Works and Goods and
acquisition of consulting services financed by the Bank will be in accordance with the
Bank’s rules (ie Rules and Procedures for Procurement of Goods and Works (May 2008), or
as appropriate, Rules and Procedures for the Use of Consultants (May 2008), using the
relevant Bank standard Bidding Documents. The Executing Agencies will be responsible for
the procurement of goods and consulting services in accordance with the Bank rules and
procedures. The procurement arrangements table is attached (Appendix V). Details are
provided in Technical Annex B.6. The procurement management capacity assessment of the
AUC and the 3 host institutions was conducted. Details of the findings and measures
recommended to address specific issues for each case are specified in Technical Annex B.6.
The table below summarizes the procurement risk assessment. The ADB regional
procurement teams posted in field offices will provide regular supervision.
Table 4.2: Procurement Risk Assessment
Executing agencies Level of Procurement Risk
AUC/HRST Moderate
PAUSTI/JKUAT Moderate
PAULESI/UI Moderate
PAUGHSS/UY2 Substantial
4.2 Monitoring
4.2.1 Monitoring and evaluation will be a major function of the AUC’s Department of
HRST which will be the overall project coordinating agency. Where appropriate, the
project will make use of existing AU’s M & E systems and procedures. A performance based
M&E system will be established based on the log frame indicators including provision for
impact evaluation. The system will be integrated into the overall PAU management system as
defined in the Statute. Resources will be provided to assess the needs for the system, conduct
collection of baseline data and update mechanism. The system will provide information for
17
the quarterly progress reports. A mid-term evaluation will be conducted after 2 years of
implementation to review progress and take corrective measures if necessary.
4.2.2 Impact Evaluation: The project will fund an impact evaluation that will provide
evidence as to the type of interventions that are successful (or not) in improving the
performance of higher education institutions. The impact of inputs and processes such as
the use of IT, the scholarship scheme, and the involvement of the private sector will be
assessed. The PAU Management structure (Rectorate and Institutes) will be strengthened to
enable them to conduct impact evaluation as a function. Table 4.3 presents the main
monitoring milestones for the implementation of the projects.
Table 4.3: Monitoring schedule
Timeframe Milestone Monitoring process / feedback loop
November 2013 Grant agreement effective
December 2013 Project launched with 3 PAU institutes staffed
with the minimum professional staff required
Launching mission is organized with
adequate skills mix
February 2014 Meeting of Regional Steering Committee
September 2014 PAU Permanent Rector recruited
October 2014 Admission of PhD students in the 3 institutes Report PAU Management and
HRST/AUC
Number of scholarships offered
December 2014 Baseline studies (for impact evaluation
completed)
Report produced with indicators to be
monitored
March 2015 All planned new equipment purchased under
project
June 2016 Mid- term evaluation Mission conducted and report produced
with recommendations
September 2016 First MS graduates Graduation ceremony held
September 2017 First PhD graduates
December 2018 Project completed
June 2019 PCR mission, including impact evaluation PCR produced and processed
4.3 Governance
There are no critical foreseen risks related to Governance. The PAU which will be
run like a formal university benefits in its early stages from the experience of well-established
universities hosting its institutes. The design of the project reflects the need to assist the AUC
set up a solid Administrative structure for the PAU in accordance with the statutes.
Development partners such as GIZ and SIDA are assisting the AUC in this regard. The
Bank’s contribution will also support aspects related to Administration and Management
aspects. The involvement of the LTPs in the development and operation of individual PAU
institutes through their own higher education institutions will offer the PAU the opportunity
to build on the experience of these foreign institutions.
4.4 Sustainability
4.4.1 The sustainability of the PAU lies in its ownership by the AU and host African
countries. The host countries and the universities fully agree that they are hosting regional
institutions. In this context, three PAU thematic hubs have all benefited from substantial
support from host countries/universities in terms of office space on campus and appointment
of Acting Director and his staff and facilities in the concerned Departments and Faculties.
Host countries also agree that they are responsible for new constructions and are prepared to
use their own resources (Nigeria and Cameroon which have dedicated budget lines for the
campus expansion works) or request resources from bilateral or multilateral sources. Kenya,
18
Cameroon and Nigeria have already allocated respectively USD 500,000 (UA 335,000), XAF
140,000,000 (USD 183,000) and NGN 250.00 million (USD 1.06 million) and the AUC has
allocated USD 14.3 million for its 2013 budget.
4.4.2 The PAU addresses priorities of the AU’s Development Strategy for which there
is a strong commitment from the AU and Members states. The endorsement by the
Ministers and the Scientific Community (Declaration at the Nairobi STI Forum, April 2012)
and the specific Decision of the AU
Assembly on the PAU in July 2012 are
further evidence of this support. Furthermore,
the PAU Statute (Article 16) provides for the
establishment of an Endowment Fund for the
university which will be an effective
instrument for resource mobilization. This
has been approved by the July 2012 Summit
of the AU. The Endowment Fund, to be
managed in conformity with the general
financial principles applicable to AU institutions, will be created based on voluntary
contributions from Governments of Member States of the AU, RECs, Development Partners
and relevant Donors, and Public and private sources.
4.4.3 Preliminary assessments indicate the viability of the PAU thematic institutes and
there is potential for co-financing. The PAU business model shows that most of the needed
resources for the five year period are provided by the AU (43%) which has sent a written
commitment to the Bank in this regard, the ADF (29.2%) with contribution from the 3 host
countries (17,4%) and the LTPs (10,3%). The potential for co-financing from the LTPs is
substantial (e.g. SIDA alone has pledged USD 5.00 million a year for 5 years). As discussed
above (paragraph 1.3.1) several development partners have already allocated resources and
are working with the AU to prepare their more substantial support. Resources will also be
channeled to the PAU through the Endowment Fund, as provided for in the PAU Statute. In
order to ensure long term sustainability of the PAU, the project has allocated resources and
technical assistance to support the PAU to develop and update business plans and programs to
strengthen linkages with the private sector. All the 3 host universities have been traditionally
engaged with the private sector and the PAU offers them an opportunity for strengthening
existing partnerships. The participation of qualified private universities to the thematic
networks will be envisaged. Capacity building in planning, management and monitoring at
central PAU level and at the level of the institutes will be funded through training and
technical assistance. It is estimated that at the end of this investment and initial operation
period, the PAU will become sustainable through tuition fees, private sector sponsorships and
provision of professional services by the PAU institutes.
4.4.4 The recurrent costs are covered by the revenue generated by the PAU institutes.
The host universities were selected on the basis of their history in delivering post-graduate
programs and the existing potential. Figure 4 and the table in Technical Annex B8.3 present
the evolution of total recurrent costs and revenues for 10 years. The analysis demonstrates
that (i) the recurrent costs are covered by tuition paid by students from the second year on,
indicating that the business model of the PAU is consistent and can generate future revenue in
order to invest in other programs or economic activities (research and development projects,
incubators, international cooperation, social activities); (ii) after a first period (five years)
where the PAU is subsidized by ADB and other strategic donors there's a window for its
sustainability (for example in Year 6, in order to cover the recurrent costs only 60% of tuition
is needed), and (iii) recurrent costs per student for these high level programs are reasonable.
19
Furthermore, the average recurrent student cost is decreasing and is reduced to USD 4,400
within five years starting from USD 11,662. The decreasing marginal cost implies that the
PAU is sustainable.
4.5 Risk management
The main risks presented in the following table have been articulated in the results-
based logical framework
Table 4.4: Risks and mitigation
Potential Risks Level Mitigation Measures
Difficulties in attracting high profile
teachers to PAU programs
Low Recruitment will be based on best practices and top 50
universities standards, with attractive salary and incentive
package.
Lack of support from the existing
higher education community, including
resistance to change by academics
(rivalry, lack of recognition of the
thematic hubs).
Low Further stakeholders consultations, transparency in
selection of institutions participating in thematic
networks; strategy to inform on PAU goals and the aims.
Host countries & universities fail to
honor the expected financial
commitment.
Low Partial financial responsibility is understood as part of the
host country agreement. Some countries have already
allocated start up resources. During Appraisal mission the
ADB Team noted the strong commitment of government
and universities.
Lead donors fail to honor the expected
technical and financial support
Medium Lead thematic Partners (LTP) are committed and have
signed MOUs with the AUC. Some of the LTPs have
already allocated funds to the start-up activities of the
PAU. (SIDA, GIZ)
The students are overwhelmingly
males and it proves very difficult to
recruit females
Low Information campaign to attract female candidates; and
specific scholarship quotas allocated to female
candidates.
Brain Drain – Students leave PAU
institutes and are enrolled by best
American or European universities
after Masters degree.
Low A commitment to work for at least 5 years in African
countries or to reimburse the scholarships and other
expenses. Establish conditions in partnership with private
sector to help PAU graduates to initiate start-ups. Strategic links with industry and other employers, e.g.
through open days and career days.
4.6 Knowledge building
4.6.1 The design of the PAU Center of Excellence has had a significant contribution to
the generation of knowledge for higher education and skills development for Africa and
the Bank. The process for design of this project involving overall needs assessment will
provide a good experience for the AU to implement advanced training and research programs
in other areas. This project also offers a model for establishing an institution of higher
learning by building on partnership involving African institutions, African countries, and
institutions of higher learning from the North and South and bilateral and multilateral donors.
4.6.2 The Bank will use the knowledge generated to study, design and implement other
centers of excellence in the region. This knowledge will be available through documents and
web sites as well as exchange of experience between the project staff and experts in Partner
States.
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V – FINANCING INSTRUMENTS AND CONDITIONS
5.1 Financing instrument and conditions
The financing instrument proposed is a grant of UA 30.00 million to the AU.
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.
Condition precedent to First Disbursement: The obligations of the Fund to make the first
disbursement of the Grant shall be conditional upon the entry into force of this Protocol of
Agreement and the fulfillment by the Recipient, in form and substance satisfactory to the
Fund, of the following condition:
(i) Provide evidence of the opening of one (1) special account in a Bank acceptable to
the Fund to receive the proceeds of the Grant (paragraph 4.1.5).
5.3 Compliance with Bank Policies
This project complies with all applicable Bank policies, including (i) The Ten Year
Strategy 2013-2022; (ii) Education Sector Policy; (iii) Higher Education, Science and
Technology Strategy (2008); (iv) Strategy for Regional Integration 2009-2012; and (v)
Strategic Framework for regional operations (2008), and the draft Human Capital
Development Strategy.
VI – RECOMMENDATION
Management recommends that the Board of Directors approve the proposed grant of
UA 30.00 million to the Support to the Pan African University Project for the purposes and
subject to the conditions stipulated in this report.
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Appendix I. Detailed Test for Regional Public Good Eligibility
MULTINATIONAL: THE SUPPORT TO THE PAN AFRICAN UNIVERSITY
PROJECT
CHECK-LIST OF CRITERIA FOR FINANCING RPGs
The AFDB has been asked to play a deeper role in financing regional operations (ROs). Regional integration
(RI) has emerged as one of the key pillars of the Bank’s strategic orientations. In this connection, the Bank has
also been increasingly called upon to support regional public goods (RPGs). The Board and ADF-11 Deputies
have discussed the regional operations and RPG issues extensively and requested management to elaborate a
coherent framework for ROs and provide specific classification and selection criteria for RPGs.
Please rate eligible RPGs according to this set of criteria developed by the Task team.
Project Name: Support to the Pan African University Project
Department: OSHD
Task Manager: C.M. GUEDEGBE
Countries involved Kenya, Cameroon, Nigeria
Regions involved: All Africa
For each criterion below, please provide bullet-points to evaluate the project.
CRITERION SHORT EVALUATION (BULLET-POINTS)
Stage I:
Non-rivalry: Public goods are those whose benefits can
be enjoyed by one party without (or hardly) reducing the
availability of these benefits to others.
The project will demonstrate that the object of assistance
within the project is something whose benefits will be
consumed by more than one party and that a provider
cannot keep non-contributors from consuming the benefit
of that good. Some examples can be terms of trade, cross-
boundary diseases (animal and human), shared water
resources, cross-border roads.
The support to the Pan African University (PAU) Project is in
line with the African Union’s priorities in higher education. It
provides a conceptual framework to build excellence in African
higher education and research. The configuration includes
main thematic institutes (hubs) leading thematic networks of 10
centres of excellence each selected from all over Africa. Thus
access to quality higher education & research (Master and
PhD level )will be possible to all qualified Africans. The
project increases the Scientific Knowledge creation and
generation in Africa. This Knowledge benefits all Africa
without any rivalry.
Non-excludability: It is difficult or prohibitively
expensive to exclude others (countries/ communities/
regions) from enjoying/ consuming the generated
benefits.
The project will demonstrate that there is no way that
non-participating countries/ communities can be stopped
from enjoying the generated benefits because of the
nature of the object of the project’s assistance.
Each region will host a central hub for one network of centres
of excellence in a given area. It will thus reach all the
geographic regions and all the areas of studies African
Governments found relevant for the development of the
continent. The regional thematic hubs are located in each of
the African region to serve the entire continent. Each of them
will lead a network of institutions belonging to all regions of
Africa. The PAU increases the availability of top-level degrees
in Africa for all African countries. At the same time knowledge
creation (African students resolving African problems in
African context) will benefit the entire continent through
itsdissemination.
Of Public Interest: The good is of broad public interest
and benefit. Typically, a public/ governmental entity in
each participating country is typically responsible for the
regulatory/policy context for the good to be produced and
takes part in its production.
The project will demonstrate that there is either an inter-
governmental coordinating body in place or an existing
REC to regulate and oversee the function and
coordination of the object of support in a proposed
project. As such, the project will demonstrate to what
extent the inter-governmental body and/or REC has taken
steps to ensure the maintenance of the object of support
and to what level of success.
All African Governments have endorsed the PAU as a project
of public interest. The AU Commission has officially requested
the Bank to assist.
Higher Education and Public Research and Development are
of broad Public Interest. A Rectorate under the supervision of
African Union will coordinate the project.. The PAU is of
broad public interest and benefits all AU countries. The public
good dimension of the PAU stems from the Summit of Head of
States and the Conference of Education Ministers
(COMEDAF), as well as African Ministers at the First Africa
Science and Technology Forum in Nairobi in April 2012
(Nairobi Declaration).
- 2 -
CRITERION SHORT EVALUATION (BULLET-POINTS)
Stage II
Multi-country involvement: The public good involves
two or more countries and can only be effectively
produced if every country involved participates and
supports its production.
The project will demonstrate that there are at least two
countries involved with regards to the object of support
(5%) and that the object of support in the Bank’s
investment is something that is either of a global and/or
regional development importance and this should be
demonstrated through a regionally/globally validated
document (for example the “Convergence Plan of
COMEFAC” outlining the work in the Congo Basin, a
UN document agreeing on steps to reduce climate change,
SADC gender action plan, the ECOWAS memorandum
on Food Crisis, etc.) confirming this importance (10%).
The Fourth Ordinary Session of the Conference of Ministers of
Education of the African Union (COMEDAF IV) held in
Mombasa in November 2009, endorsed the Pan African
University as an Academic network of already existing post-
graduate and research institutions. At the present stage, three
countries (Kenya, Nigeria and Cameroon) are actively
involved as lead thematic institutes The current development
stage of the PAU indicates involvement of several countries.
Algeria is going to host the fourth hub.
At its final stage the project may benefit more than 50
universities from all African countries.
The regional dimension. The AU as a continental organization
and the RECs as well as individual countries support this
initiative. Moreover, in agreement with the AUC, the host
countries have been playing a key role to establish the PAU
institutes in Cameroon, Kenya, and Nigeria by providing
financial resources and logistics.
Strategic Alignment: The RPG is strongly aligned with
the Bank’s strategic orientations and also to continental
and regional objectives (i.e RPGs identified as priority
operations under NEPAD or REC regional integration
plans). Harmonization and partnership will be
encouraged by giving preference to co-financing
arrangements that promote donor coordination and
leverage the Bank’s own resources by mobilizing
additional funds, including from sister institutions or the
private sector.
The project will demonstrate that the RPG is closely
aligned with the continental and regional development
agenda as well as the Bank Group’s own strategy,
especially with regard to selectivity and sector focus, and
harmonization and partnership.
The proposed project is in line with the Bank’s 2013-2022
Strategy, Skills and Technology and Regional Integration are 2
or the 5 core operational priorities of the Strategy.
Furthermore, Higher Education Science and Technology
Strategy (2008) and the the Human Capital Development
Strategy under preparation highlight the need to strengthen
higher education, technology and vocational training to assist
the countries develop adequate skills to enhance
competitiveness and youth employment. The PAU has the
potential to contribute to addressing these priorities The
project also furthers the African Union’s priorities as
expressed in the Strategic Plan (2009-2012), and Education
Plan for the Second Decade (2006-2015)
Catalytic and Upstream Role: Bank financing targets the
initial stages of the processes for generating the public
good and the Bank’s support should aim at correcting
disincentives that prevent the RPG from emerging or
progressing toward the stage of production, such as lack
of coordination, aversion to risk, free-rider problem.
The project will demonstrate that the Bank is supporting
an initial investment to an object and that by doing so
opens the way for further investments by partners/ RMCs
in the regional or national context for specific
development impact (to be specifically demonstrated).
Under this criterion, the project will also demonstrate that
without the Bank’s intervention, there is a risk of certain
beneficiaries free-riding and not being held accountable.
The project will demonstrate that the Bank’s intervention
will add value to strengthen coordination in the region
generally and/or through the inter-governmental body or
REC involved (if any).
At the request of the AUC, the Bank has prepared a
comprehensive needs assessment for the establishment of the
the PAU. The Bank is playing a key role as technical and
financial partner in helping develop the concept of the PAU as
well as its initial structures and in mobilizing resources. The
Bank’s involvement has been an incentive for other technical
and financial partners (such as Japan, Sweden) who have
joined the Bank during the preparation mission. The Bank’s
financial contribution will create adequate conditions for
startup.
Higher Developmental Impact in Cooperating: The
development impact to be achieved through countries’
cooperation is demonstrably superior to what each
country could have achieved individually.
The project will go on to demonstrate that the
development impact (to be specified by the team e.g.
poverty reduction, gender equity, human development,
etc.) will be increased only if the object of support is
addressed within a regional context with the participation
of at least two countries (as opposed to national projects).
While improving quality the project will promote regional
integration of academic and research programmes and the
mobility of students and staff. It is also expected to help curb
and reverse the brain drain. Individual academic.
The PAU will contribute to alleviating the constraints higher
education is facing in the countries as regards the lack of high
level skills, by capitalizing on the availability of shared
resources
The PAU will make it possible for less endowed countries to
train their citizens in very specialized fields.
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Eligibility to cost-sharing exemption
Grant resources outside the Performance-Based
allocation (PBA) Allocation (i.e. exclusively from the RO
envelope) will be considered for those projects which
demonstrate superior developmental impact- with respect
to economic and social advancement through amongst
others, the following: employment generation, trade
promotion, security improvement, gender equality and
climate change and adaptation.
The list of such projects will be determined by the ranking
stemming from the rating assessed during the previous
stage and endorsement by the Operations Committee.
The Bank is supporting the AUC, a regional body establish a
regional university which will serve the entire continent. The
institutions hosting the first three regional thematic hubs
(Jomo Kenyatta University in Kenya; University of Yaounde 2
in Cameroon and University of Ibadan in Nigeria) have been
selected on a competitive basis. These universities as well as
national authorities have already committed resources to
support these hubs. Lead thematic partners (technical and
financial external partners) have been identified and are
preparing to provide support.
- 1 -
Appendix II (A): Implementation structure for the Project
Appendix II (B): Expenditure categories by Beneficiary Institution
Expenditure
categories
PAUSTI
(Nairobi)
PAULESI
(Ibadan)
PAUGHSS
(Yaoundé)
PAU Administration
& Project
Management
(Addis Ababa
Total
A. WORKS
B. GOODS 3,89 1,95 0,30 0,30 6,44
C. SERVICES 2,75 2,76 1,71 2,50 9,72
D. OPERATING 0,43 0,43 0,52 3,98 5,36
E. MISCELLANEOUS 3,50 3,50 1,47 0,00 8,48
TOTAL 10,57 8,65 4,01 6,78 30,00
Appendix III: Comparative Socio-economic indicators of host countries
Year Cameroon Kenya Nigeria Africa
Develo-
ping
Countries
Developed
Countries
Basic Indicators
Area ( '000 Km²) 2011 475 580 924 30 323 80 976 54 658Total Population (millions) 2011 20,0 41,6 162,5 1 044,3 5 733,7 1 240,4Urban Population (% of Total) 2011 59,2 22,5 50,5 40,4 45,5 75,4Population Density (per Km²) 2011 42,4 73,1 178,4 36,1 59,9 36,5GNI per Capita (US $) 2010 1 180 790 1 180 1 549 3 304 38 657Labor Force Participation - Total (%) 2011 99,4 52,2 124,6 74,7 65,0 60,4Labor Force Participation - Female (%) 2011 46,0 46,3 42,7 42,5 49,2 50,2Gender -Related Dev elopment Index Value 2007 0,515 0,538 0,499 0,502 0,694 0,911Human Dev elop. Index (Rank among 187 countries) 2011 150 143 156 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population) 2007 9,6 43,4 68,0 40,0 22,4 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2011 2,2 2,7 2,5 2,3 1,3 0,4Population Grow th Rate - Urban (%) 2011 3,5 4,2 4,0 3,4 2,3 0,7Population < 15 y ears (%) 2011 40,5 42,4 42,8 40,4 28,7 16,5Population >= 65 y ears (%) 2011 3,5 2,7 3,4 3,4 5,9 16,2Dependency Ratio (%) 2011 78,6 82,1 86,1 78,1 53,0 48,6Sex Ratio (per 100 female) 2011 99,7 99,8 102,6 99,5 103,4 94,6Female Population 15-49 y ears (% of total population) 2011 24,3 24,2 23,0 24,4 26,2 23,6Life Ex pectancy at Birth - Total (y ears) 2011 51,6 57,1 51,9 57,7 77,7 67,0Life Ex pectancy at Birth - Female (y ears) 2011 52,6 58,3 52,7 58,9 68,9 81,1Crude Birth Rate (per 1,000) 2011 35,7 37,4 39,7 34,5 21,1 11,4Crude Death Rate (per 1,000) 2011 13,9 10,3 14,1 11,1 7,8 10,1Infant Mortality Rate (per 1,000) 2011 88,0 60,2 89,9 76,0 44,7 5,4Child Mortality Rate (per 1,000) 2011 141,2 92,7 144,9 119,5 67,8 7,8Total Fertility Rate (per w oman) 2011 4,4 4,7 5,5 4,4 2,6 1,7Maternal Mortality Rate (per 100,000) 2010 690,0 360,0 630,0 530,7 230,0 13,7Women Using Contraception (%) 2007-09 29,2 45,5 14,6 28,6 61,2 72,4
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2007-09 19,0 13,9 39,5 57,8 112,0 276,2Nurses (per 100,000 people)* 2007-09 160,0 ... 160,5 134,7 186,8 708,2Births attended by Trained Health Personnel (%) 2007-09 63,0 43,8 38,9 53,7 65,3 ...Access to Safe Water (% of Population) 2010 77,0 59,0 58,0 65,7 86,3 99,5Access to Health Serv ices (% of Population) 2007-09 ... ... ... 65,2 80,0 100,0Access to Sanitation (% of Population) 2010 49,0 32,0 31,0 39,8 56,1 99,9Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2009 5,3 6,3 3,6 4,3 0,9 0,3Incidence of Tuberculosis (per 100,000) 2010 177,0 298,0 133,0 241,9 150,0 14,0Child Immunization Against Tuberculosis (%) 2010 96,0 99,0 76,0 85,5 95,4 ...Child Immunization Against Measles (%) 2010 79,0 86,0 71,0 78,5 84,3 93,4Underw eight Children (% of children under 5 y ears) 2007-09 16,6 16,4 26,7 30,9 17,9 ...Daily Calorie Supply per Capita 2007 2 269 2 089 2 741 2 462 2 675 3 285Public Ex penditure on Health (as % of GDP) 2009 1,6 1,5 2,1 2,4 2,9 7,4
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010 119,8 113,3 83,3 101,4 107,8 101,4 Primary School - Female 2010 110,9 112,0 79,3 97,6 105,6 101,3 Secondary School - Total 2010 42,2 60,2 44,0 47,5 64,0 100,2 Secondary School - Female 2010 38,4 57,1 41,2 44,3 62,6 99,8Primary School Female Teaching Staff (% of Total) 2010 48,0 43,9 48,2 44,3 60,7 81,7Adult literacy Rate - Total (%) 2007 70,7 87,4 61,3 67,0 80,3 98,4Adult literacy Rate - Male (%) 2007 78,9 90,6 72,1 75,8 86,0 98,7Adult literacy Rate - Female (%) 2007 63,0 84,2 50,4 58,3 74,9 98,1Percentage of GDP Spent on Education 2010 3,5 6,7 ... 4,6 4,1 5,1
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2009 12,6 9,5 37,3 7,6 10,7 10,8Annual Rate of Deforestation (%) 2007-09 0,9 0,5 2,6 0,6 0,4 -0,2Forest (as % of Total Land Area) 2010 42,1 6,1 9,9 23,0 28,7 40,4Per Capita CO2 Emissions (metric tons) 2009 0,4 0,3 0,5 1,1 2,9 12,5
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.
COMPARATIVE SOCIO-ECONOMIC INDICATORS
Cameroon, Kenya and Nigeria
June 2012
Appendix IV: Map of the region indicating project sites
Disclaimer: This Map was provided by the African Development Bank 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
Appendix V : Procurement arrangements
(ADF, in UA million)
ICB NCB CONS OTHER TOTAL
A. WORKS
B. GOODS
B1. PAUSTI
Lab Equipment PAUSTI 3,62 3,62
Books and materials PAUSTI
0,15 0,15
IT and networking PAUSTI 0,11 0,11
Subtotal 3,62 0,26 3,89
B2. Rectorate
Equipment for Rectorate (temporary premises) 0,11 0,11
Equipment for Directorate HRST 0,04 0,04
PAU Virtual Library
0,15 0,15
Subtotal 0,15 0,15 0,30
B.3. PAULESI
Lab Equipment PAULESI 1,69 1,69
Books and materials PAULESI
0,15 0,15
IT and networking PAULESI 0,11 0,11
Subtotal 1,69 0,26 1,95
B4. PAUGHSS
Books PAUGHSS 0,19 0,19
IT and networking PAUGHSS 0,11 0,11
Subtotal 0,30 0,30
TOTAL GOODS 5,31 0,97 0,15 6,44
C. SERVICES
C1. PAUSTI
Elearning content development PAUSTI 0,07 0,07
Liaison officer with private sector_PAUSTI 0,04 0,04
Fultime teachers PAUSTI 1,20 1,20
Part Time teachers PAUSTI 0,83 0,83
Visitiing Profs PAUSTI 0,29 0,29
Audit_PAUSTI 0,07 0,07
Baseline studies PAUSTI 0,01 0,01
Impact studies PAUSTI 0,02 0,02
Procedure manual and Financial Mangement System PAUSTI 0,02 0,02
Midterm review and completion report PAUSTI 0,02 0,02
Procurement Officer PAUSTI 0,07 0,07
Subtotal 2,65 2,65
C2. PAULESI
Study on development of EHealth and MHealth at PAULESI 0,14 0,14
Liaison officer with private sector_PAULESI 0,04 0,04
Fultime teachers PAULESI 1,54 1,54
Part Time teachers PAULESI 0,40 0,40
Visitiing Profs PAULESI 0,18 0,18
- 2 -
Audit_PAULESI 0,07 0,07
Baseline studies PAULESI 0,01 0,01
Impact studies PAULESI 0,02 0,02
Procedure manual and Financial Mangement System PAULESI 0,02 0,02
Midterm review and completion report PAULESI 0,02 0,02
Procurement Officer PAULESI 0,07 0,07
Elearning content development 0,07 0,07
Subtotal 2,59 2,59
C3. PAUGHSS
Elearning content development PAUGHSS 0,07 0,07
Liaison officer with private sector_PAUGHSS 0,04 0,04
Fultime teachers PAUGHSS 0,77 0,77
Part Time teachers PAUGHSS 0,22 0,22
Visitiing Profs PAUGHSS 0,18 0,18
Audit_PAUGHSS 0,07 0,07
Baseline studies PAUGHSS 0,01 0,01
Impact studies PAUGHSS 0,04 0,04
Procedure manual and Financial Mangement System
PAUGHSS 0,01 0,01
Midterm review and completion report PAUGHSS 0,02 0,02
Procurement Specilalist PAUGHSS 0,07 0,07
Finance Specialist PAUGHSS 0,09 0,09
Subtotal 1,60 1,60
C4. Rectorate and Coordination
Study on Gender Situation in Higher Education in Africa 0,08 0,08
Business plans for PAU 0,14 0,14
Audit for Project coordination 0,07 0,07
Procedure manual 0,03 0,03
Technical assistance to Rectorate 0,30 0,30
Recruitment process Rectorate 0,25 0,25
Technical assistance to HRST 0,40 0,40
Other thematic studies Rectorate & Coordination 0,42 0,42
Feasibility study PAU IT Network 0,25 0,25
Study Innovative Financing including Academic Chairs 0,27 0,27
Procurement Officer HRST 0,06 0,06
Subtotal 2,27 2,27
STAFF TRAINING
Staff training PAULESI 0,18 0,18
Staff training PAUGHSS 0,11 0,11
Staff training PAUSTI 0,11 0,11
Staff training Rectorate 0,22 0,22
Subtotal 0,61 0,61
TOTAL SERVICES 9,72 9,72
D. MISCELLANEOUS
D1. Student scholarships PAUSTI 3,21 3,21
D2 Student scholarships PAULESI 3,21 3,21
D3 Student scholarships PAUGHSS 1,18 1,18
- 3 -
Subtotal 7,61 7,61
D4. Researc grants PAUSTI 0,29 0,29
D5. Research graznts PAULESI 0,29 0,29
D6. Research grants PAUGHSS 0,29 0,29
Subtotal 0,87 0,87
TOTAL MISCELLANEOUS 8,48 8,48
E. OPERATING COSTS
Operating Costs Rectorate
E1. PAUSTI
Other operating costs PAUSTI 0,39 0,39
Salaries and allowances PAUSTI staff 0,21 0,21
Subtotal 0,59 0,59
E2. PAULESI
Other operating costs PAULESI 0,22 0,22
Salaries and allowances PAULESI staff 0,21 0,21
Subtotal 0,43 0,43
E3. PAUGHSS
Other operating costs PAUGHSS 0,75 0,75
Salaries and allowances PAUGHSS staff 0,21 0,21
Subtotal 0,96 0,96
E4. Rectorate and Coordination
Operating Costs Rectorate 0,09 0,09
Salaries and allowances Rectorate & Coordination 1,84 1,84
Regional steering committee 1,09 1,09
Curriculum development and update 0,37 0,37
Subtotal 3,38 3,38
TOTAL OPERATING COSTS 5,36 5,36
TOTAL COST (ADF) 5,31 0,97 9,72 13,99 30,00