Document of The World Bank FOR OFFICIAL USE ONLY Report No: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND/OR INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED GRANT IN THE AMOUNT OF US$ ONE MILLION TO THE INTER UNIVERSITY COUNCIL OF EAST AFRICA FOR A HORN OF AFRICA COORDINATION SUPPORT TEAM FIDUCIARY INSTITUTION JANUARY 12, 2022 Other Global Practice Africa Region Note to Task Teams: 1. Please modify amounts above and provide equivalent in US$ if applicable. 2. Enter the date the Project Paper is sent for final approval. CURRENCY EQUIVALENTS (Exchange Rate Effective {Nov 23, 2021}) Currency Unit = = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez M. H. Ghanem Country Director: Boutheina Guermazi Global Director: Practice Manager: Task Team Leader(s): Prashant Singh ABBREVIATIONS AND ACRONYMS The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC INFORMATION Is this a regionally tagged project? Country (ies) Yes Djibouti, Eritrea, Ethiopia, Kenya, Sudan, Somalia Financing Instrument Classification Investment Project Financing Small Grants Approval Date Closing Date Environmental and Social Risk Classification 08-Nov-2021 30-Nov-2024 Low Approval Authority Bank/IFC Collaboration CDA No Please Explain Proposed Development Objective(s) The Development Objective of this activity is to successfully manage the resources necessary to maintain the Coordination Support Team to provide support to the Horn of Africa Initiative Secretariat to achieve the objectives of the Initiative. Components Component Name Cost (USD Million) Organizations Borrower : Inter University Council of East Africa Implementing Agency : Inter University Council of East Africa PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Page 1 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) Total Project Cost 1.00 Total Financing 1.00 Financing Gap 0.00 DETAILS -NewFinEnh1 Non-World Bank Group Financing Trust Funds 1.00 Horn of Africa Initiative Umbrella Trust Fund 1.00 Expected Disbursements (in USD Million) Fiscal 2022 2023 2024 2025 Year Annu 0.02 0.10 0.16 0.24 al Cumu 0.02 0.12 0.28 0.52 lative INSTITUTIONAL DATA Financing & Implementation Modalities Situations of Urgent Need of Assistance or Capacity Constraints [✔] Fragile State(s) [ ] Fragile within a [ ] Small State(s) [ ] Conflict [ ] Responding to non-fragile Country Natural or Man-made Disaster Other Situations [ ] Financial Intermediaries (FI) [ ] Series of Projects (SOP) [ ] Performance-Based Conditions (PBCs) [ ] Contingent Emergency Response Component (CERC) [ ] Alternative Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) Contributing Practice Areas Agriculture and Food Digital Development Energy & Extractives Page 2 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) Education Finance, Competitiveness and Innovation Fragile, Conflict & Violence Governance Health, Nutrition & Population Macroeconomics, Trade and Investment Poverty and Equity Infrastructure, PPP's & Guarantees Social Sustainability and Inclusion Social Protection & Jobs Transport Water OVERALL RISK RATING Risk Category Rating Overall ⚫ Moderate COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✔] No Does the project require any waivers of Bank policies? [ ] Yes [✔] No Page 3 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Not Currently Relevant Community Health and Safety Not Currently Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant Biodiversity Conservation and Sustainable Management of Living Natural Not Currently Relevant Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities Cultural Heritage Not Currently Relevant Financial Intermediaries Not Currently Relevant Legal Covenants Conditions PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader(ADM Prashant Singh Trust Funds and Partnerships SAEU3 Responsible) Procurement Specialist(ADM Annet Tamale Katuramu Procurement EAERU Responsible) Financial Management Stephen Diero Amayo Financial Management EAEG1 Specialist(ADM Responsible) Page 4 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) Social Specialist(ADM Caroline Emma Phillips Social Safeguards SAES2 Responsible) Environmental Specialist(ADM Tamene Tiruneh Matebe Environmental Safeguards SAEE2 Responsible) Deo Ndikumana Team Member Regional Integration AFWRI Petrus Henricus Van Team Member Trust Funds and Partnerships EPSPF Heesewijk Extended Team Name Title Organization Location Note to Task Teams: End of system generated content, document is editable from here. Page 5 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) AFRICA HORN OF AFRICA COORDINATION SUPPORT TEAM FIDUCIARY INSTITUTION TABLE OF CONTENTS I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context .................................................................................................................. 7 B. Sectoral and Institutional Context ...................................................................................... 7 C. Higher Level Objectives to which the Project Contributes ................................................. 7 II. PROJECT DEVELOPMENT OBJECTIVES .............................................................................. 8 A. PDO...................................................................................................................................... 8 B. Project Beneficiaries ............................................................................................................ 9 C. PDO-Level Results Indicators............................................................................................... 9 III. PROJECT DESCRIPTION.................................................................................................... 9 A. Project Components............................................................................................................ 9 B. Project Cost and Financing .................................................................................................. 9 IV. IMPLEMENTATION........................................................................................................ 10 A. Institutional and Implementation Arrangements ............................................................. 10 B. Results Monitoring and Evaluation ................................................................................... 10 C. Sustainability ..................................................................................................................... 10 V. KEY RISKS ..................................................................................................................... 11 A. Overall Risk Rating and Explanation of Key Risks.............................................................. 11 VI. APPRAISAL SUMMARY .................................................................................................. 11 A. Legal Operational Policies ................................................................................................. 11 B. Environmental and Social .................................................................................................. 11 VII. WORLD BANK GRIEVANCE REDRESS .............................................................................. 12 VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 13 Page 6 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) I. STRATEGIC CONTEXT 1. The Horn of Africa (HoA) has a geo-strategic position about the Red Sea, the Arabian Sea, the Indian Ocean and the Gulf, and has important regional and international significance. Six countries constitute what is sometimes called the ‘core’ Horn1 - Djibouti, Eritrea, Ethiopia, Kenya, Sudan and Somalia. History and location go a long way in explaining the geopolitics of the region. A. Country Context 2. Two of the five HoA countries (Ethiopia and Kenya) were expected to be among the Top 10 growth economies in Africa. Regional integration within the Horn presents a compelling case for expanding on the opportunities on offer, while simultaneously addressing some of the challenges. The case for integration and cooperation is embedded in the Horn’s geography, history, social and economic factors. First, integration can help to accelerate the growth engine and strengthen the poverty elasticity of growth within a context of global uncertainties. A recent study2 on the impact of regional integration on inclusive growth found that “regional integration appears to hold greatest promise in reducing poverty�. Specifically, overall integration and the dimensions of trade and investment, money and finance, and institutional and social integration were found to be significant and robust drivers of poverty reduction, with an even more pronounced positive impact on lower-income countries B. Sectoral and Institutional Context 3. In late-2018 leaders of Ethiopia, Djibouti, Kenya, Eritrea and Somalia requested the help of development partners African Development Bank (AfDB), European Union (EU) and the World Bank (WB) to facilitate technical discussions among the countries to identify priority actions and proposals that could form the basis of a new Horn of Africa Initiative. Initially only these five countries were involved, later Sudan became an additional member of the HoAI. Several roundtable meetings of HoA Finance Ministers provided an excellent opportunity for countries to drive and reach agreements on shared priorities. The Ministerial-level meetings were complemented by a series of technical discussions both within and among countries to identify key priorities. In October 2019, all countries and the three partners met during the Bank’s Annual Meetings where the Ministers of Finance of the five countries committed to a set of principles and actions to ensure the effective implementation of the HoA Initiative. C. Higher Level Objectives to which the Project Contributes 4. The HoA Initiative has adopted the following four pillars as the higher-level objectives of the Initiative, and each of the four pillars is supported by the HoAI MDTF which provides the funding for this project: Pillar 1: An Interconnected Horn will implement cross-border regional infrastructure projects across a spectrum of thematic areas such as economic transport corridors, energy and digital among others. Pillar 2: More Trade, More Growth, More Jobs will focus on trade and economic integration covering trade facilitation, regional value chains, and improvements in the investment climate. Activities 1In this project document “the Horn� refers to this grouping of six countries. 2Does Regional Integration Matter for Inclusive Growth? Evidence from the Multidimensional Regional Integration Index, ADB Economics Working Paper Series (October 2018) Page 7 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) supported under this pillar could include such topics such as logistics, behind-the-border regulatory convergence, trade strategy and negotiations, and planning and facilitation of cross-border infrastructure, particularly in the areas of urban infrastructure, transport, trade facilitation and private sector development Pillar 3: A Resilient Horn will focus on building resilience to climatic shocks, e.g. the current locust crisis and to conflict and displacement. Activities supported could include implementing effective mitigation practices and adaptation mechanisms such as innovative financing instruments ranging from insurance schemes to concessional financing for climate- or refugee-related interventions. Pillar 4: A Skilled Horn will focus on human capital development to find regional solutions to improve human capital and service delivery in view of the current global health pandemic and its potential long- term impacts. Activities support under this pillar could include modernizing education (teaching practices, measuring learning, curricula reform, leverage technology); health (piloting health delivery systems, universal coverage, support for vulnerable populations, technology-enabled diagnostics and delivery); and social protection systems (piloting tech-enabled transfers, employment through digital economy interventions and social insurance). 5. These four pillars relate to an important area of prioritization under the World Bank’s FCV Strategy. This is translated also into IDA-19 and IDA-20 objectives with increased focus on ‘hotspot’ areas. The HoA subregion is considered one such hotspot due to the prevalence of cross-border conflict and violence, which increasingly lead to negative spillovers that impact neighboring countries. The HoA subregion also has important relevance for regional and international development given its geo-strategic location, therefore working along the nexus of peace and development is a key aspect of the Bank’s focus in the sub-region. The HoA Initiative was thus identified as a priority program for IDA-19 support and $2 billion in financing has been pledged (a combination of regional and national IDA). A key principle reflected in resource allocation includes linking intervention to start demonstrating progress on spillover benefits. 6. The HoAI is supported by a Secretariat that undertakes the vital role of convening the HoAI member countries, bringing together political and technical level leadership in core areas for regional integration, such as trade, energy and connectivity and digital development. The aim of this particular project is to enable and support the activities of the HoAI Secretariat by providing a RETF grant which will be administered by a fiduciary agent. II. PROJECT DEVELOPMENT OBJECTIVES A. PDO 7. The Development Objective of this project is to successfully manage the resources necessary to maintain the Coordination Support Team to provide support to the Horn of Africa Initiative Secretariat to achieve the objectives of the Initiative. Page 8 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) B. Project Beneficiaries 8. The final beneficiaries of this project are the HoAI member states and the regional integration activities supported through the Initiative. These beneficiaries will be supported through the HoAI Secretariat and the IUCEA in its capacity as fiduciary agent with regards to the funding provided for the project. C. PDO-Level Results Indicators 9. PDO level results indicators include the achievement of the objectives of the HoAI Secretariat, i.e., the convening of the HoAI members states as represented by their government officials in support of the regional integration activities under the four pillars of the HoAI. III. PROJECT DESCRIPTION A. Project Components 10. The project components reflect the nature of this project. IUCEA will be the recipient of the RETF grant pertaining to the GFR 40225 and will take on the responsibilities of fiduciary agent, contracting staff to be assigned to support the HoAI Secretariat. This modality was chosen for several reasons, including the annual rotating chair of the HoAI among the member states, the need to fund the Bank’s support for the Secretariat through a RETF, and the wish of the HoAI leadership to maintain the existing support team (previously financed and contracted by the EU). The project components therefore consist of: (i) the contracting by IUCEA of several specialists to support the rotating Secretariat, including a team leader, a strategic adviser, a communications expert, and team / logistics assistant - details of the personnel to be contracted are included in the budget table below; and (ii) capacity building to the Horn of Africa Initiative Secretariat as needed. 11. In addition, IUCEA will be eligible for operating costs, which shall include reasonable expenditures incurred for office supplies, vehicle operation and maintenance, communication and insurance costs, banking charges, rental expenses, office and office equipment maintenance, utilities, document duplication/printing, consumables, travel cost and per diem for Project staff for travel linked to the implementation of the Project, and salaries of contractual staff for the Project. B. Project Cost and Financing Project Components Project cost Trust Funds Total Allocation for CST from MDTF USD 500,000 per annum Team Leader (FT) – Lumpsum Contract $189,800 Program Officer (FT) – Lumpsum Contract $88,400 Strategic Adviser (PT) – Lumpsum Contract $43,800 Communications Specialist (PT) – Lumpsum Contract $51,000 Team Assistant (PT) – Lumpsum Contract $18,000 Sub total $391,000 B: Quarterly meeting of Ministers $30,000 C: Quarterly technical workshops including training $10,000 D: Fiduciary Institution Operating Cost $60,000 Page 9 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) E: Goods (Office Equipment) 9,000 Total CST Budget per annum $500,000 Total CST Budget for two years $1,000,000 Total Costs Total Project Costs $1,000,000 Total Financing Required $1,000,000 IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 12. IUCEA will be the recipient of the RETF grant as fiduciary agent and deploy these resources to contract the agreed personnel as support team for the HoAI Secretariat. IUCEA will ensure that the personnel have the required funds to implement their tasks as agreed by HoAI Secretariat. B. Results Monitoring and Evaluation 13. The World Bank TTL for the RETF will execute the normal oversight and supervision of the Grant as per the WB TF management guidelines and produce the normal implementation and completion reports in a timely manner. As part of the monitoring and evaluation, the TTL may take account of feedback from the HoAI Secretariat about this arrangement and the performance of the experts that support the Secretariat. 14. IUCEA shall report on Project activities, including engagement with stakeholders of all types, in the technical progress reports submitted to Bank. These reports will include additional details regarding the specific stakeholders with whom the Project team has engaged during the reporting period, outcomes of engagement and plans for engagement in the coming period. C. Sustainability 15. The institutional sustainability of the project depends on the continued collaboration of the HoAI member states. In the context of the challenges faced by the region, the member states have recognized that Regional Integration is an effective approach to address these fragility and resilience issues. Page 10 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) V. KEY RISKS A. Overall Risk Rating and Explanation of Key Risks 16. The risks of this project are moderate. IUCEA is an experienced and well-established institution that has taken on the role of fiduciary agent in other WB projects. The main risks are external to the project, including increased conflict in the region. VI. APPRAISAL SUMMARY The project has a positive and constructive cost to benefit ratio inasmuch as it facilitates the optimization of the functioning of the Horn of Africa Initiative, and facilitate the substantive and policy outputs and outcomes of the Initiative at the level of the Finance Ministers by enabling a Coordination Support Team to provide timely and robust support to the Finance Ministers for envisioning, approving and supervising the policy outcomes and investment elements supported by the initiative. As the Implementing Agency is already implementing Bank-funded activities, the Financial Management and Procurement processes, capacities and arrangements have been found to be satisfactory. The Project has been evaluated as having a low Environmental and Social impact, being largely confined to providing fiduciary support to enable the Coordination Support Team in assistance of the Horn of Africa Initiative. A.. Legal Operational Policies . Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No . B. Environmental and Social ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 17. Inter University Council for East Africa (IUCEA) will implement the Horn of Africa Coordination Support Team Fiduciary Institution (the Project). The International Bank for Reconstruction and Development and the International Development Association, acting as administrator of the Horn of Africa Umbrella Multi-Donor Trust Fund (hereinafter the Bank), has agreed to provide financing for the Project. 18. IUCEA will implement material measures and actions so that the Project is implemented in accordance with the Environmental and Social Standards (ESSs). This Environmental and Social Commitment Plan (ESCP) sets out material measures and actions, any specific documents or plans, as well as the timing for each of these. 19. IUCEA will also comply with the provisions of any other E&S documents required under the ESF and referred to in Page 11 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) this ESCP. 20. IUCEA is responsible for compliance with all requirements of the ESCP. 21. Implementation of the material measures and actions set out in this ESCP will be monitored and reported to the Bank by IUCEA as required by the ESCP and the conditions of the legal agreement, and the Bank will monitor and assess progress and completion of the material measures and actions throughout implementation of the Project. 22. As agreed by the Bank and IUCEA, this ESCP may be revised from time to time during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to assessment of Project performance conducted under the ESCP itself. In such circumstances, IUCEA will agree to the changes with the Bank and will update the ESCP to reflect such changes. Agreement on changes to the ESCP will be documented through the exchange of letters signed between the Bank and IUCEA. IUCEA will promptly disclose the updated ESCP. 23. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation, IUCEA shall provide additional funds, if needed, to implement actions and measures to address such risks and impacts, which may include health, and safety impacts, gender-based violence etc. VII. World Bank Grievance Redress Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. . Page 12 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) VII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY : Africa Horn of Africa Coordination Support Team Fiduciary Institution Project Development Objectives The Development Objective of this activity is to successfully manage the resources necessary to maintain the Coordination Support Team to provide support to the Horn of Africa Initiative Secretariat to achieve the objectives of the Initiative. Project Development Objective Indicators Unit of Data Source / Responsibility for Indicator Name Corporate Baseline End Target Frequency Measure Methodology Data Collection Name: Manage the Amount( 0.00 1.00 Fiduciary Functions of the USD) Horn of Africa Initiative Coordination Support Team Description: Page 13 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) Intermediate Results Indicators Unit of Data Source / Responsibility for Indicator Name Corporate Measur Baseline End Target Frequency Methodology Data Collection e Name: Manage the Amount( 0.00 1.00 resources for USD) Coordination Support Team and Other Eligible Activities for Horn of Africa Initiative Secretariat functioning Description: Name: Make Amount( 0.00 1.00 Disbursements properly USD) and carry out fiduciary functions in relation to the HoAI Coordination Support Team Description: Page 14 of 17 The World Bank Horn of Africa Coordination Support Team Fiduciary Institution (P178159) Target Values Project Development Objective Indicators FY RESULT_FRAME_TBL_ PD O Indicator Name End Target Manage the Fiduciary Functions of the Horn of Africa Initiative Coordination Support Team 1.00 Intermediate Results Indicators FY RESULT_FRAME_TBL_ IO Indicator Name End Target Manage the resources for Coordination Support Team and Other Eligible Activities for Horn of 1.00 Africa Initiative Secretariat functioning Make Disbursements properly and carry out fiduciary functions in relation to the HoAI 1.00 Coordination Support Team Note to Task Teams: End of system generated content, document is editable from here. 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