SCCD : G.G.

AFRICAN DEVELOPMENT FUND Language : English Original : English

REPUBLIC OF MOZAMBIQUE

INSTITUTIONAL SUPPORT PROJECT FOR PUBLIC SECTOR REFORM

APPRAISAL REPORT

COUNTRY OPERATIONS DEPARTMENT ONCF NORTH, EAST AND SOUTH REGIONS MARCH 2005

TABLE OF CONTENTS

Page PROJECT INFORMATION SHEET, CURRENCY, ABBREVIATIONS, (i-ix) LIST OF TABLES, BOXES, LIST OF ANNEXES, EXECUTIVE SUMMARY, COMPARATIVE SOCIO-ECONOMIC INDICATORS, PROJECT MATRIX 1 INTRODUCTION 1 1.1 Origin and History of the Project 1 2. PUBLIC SECTOR REFORM 2 2.1 Rational and Early Reform Efforts 2 2.2 Reform Agenda 3 2.3 Donor’s Support to Public Sector Reform 5 3. AREAS OF FOCUS 6 3.1 Improving Public Service Delivery 6 3.2 Enhancing Civil Servants Skills 6 4. THE PROJECT 7 4.1 Project Concept & Rationale 7 4.2 Project Beneficiaries 8 4.3 Strategic Context 9 4.4 Project Objective 9 4.5 Detailed Description of Project Components 10 4.6 Project Costs 14 4.7 Sources of Financing and Expenditure Schedule 15 5. PROJECT IMPLEMENTATION 16 5.1 Executing Agency 16 5.2 Institutional Arrangements 17 5.3 Supervision and Implementation Schedules 17 5.4 Procurement Arrangements 18 5.5 Disbursement Arrangements 20 5.6 Monitoring and Evaluation 21 5.7 Financial Reporting and Auditing 21 5.8 Aid Coordination 21 6. PROJECT SUSTAINABILITY AND RISKS 22 6.1 Recurrent Costs 22 6.2 Project Sustainability 22 6.3 Critical Risks & Mitigation Measures 23 7. PROJECT BENEFITS & IMPACT 24 8. CONCLUSION AND RECOMMENDATION 24 81. Conclusion 24 8.2 Recommendation 25

This report is based on the findings of the preparation and appraisal mission that visited Mozambique in February 2005. The mission comprised Messrs. Elfatih Shaaeldin (Division Manager, ONCF.2 ) and Duarte da Silva (Senior Country Economist, ONCF.2). Any enquiries concerning the report may be referred to the authors or Mr. Frank Black (Director, ONCF).

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LIST OF TABLES

Page 4.1 Summary of Project Costs Estimates by Component 14 4.2 Cost Estimates by Category of Expenditure 15 4.3 Cost Estimates by Sources of Finance 15 4.4 Expenditure Schedule by Component 16 4.5 Expenditure Schedule by Source of Finance 16 5.1 Summary of Implementation Schedule 17 5.2 Summary of Procurement Arrangements 18 5.3 Tentative Disbursement Calendar 20

BOXES Box 1 Support Summary per Donor 5

LIST OF ANNEXES

1. Mozambique Administrative Map 2. CPSAP Outlook and Diplomas Awarded 3. OSS Detailed Cost Estimates 4. OSS Chronogram 5. ISAP Detailed Cost Estimates 6. ISAP Chronogram 7. Institutional Arrangements 8. Terms of Reference for Consultants, Technical Assistance Staff and Lecturers 9. ISAP Courses Workload and Duration

CURRENCY EQUIVALENTS

(February 2005 Exchange Rates)

1 UA = 1.531 US Dollars 1 UA = 28,051 Meticais

1US Dollar = 18,310 Meticais (28 February 2004)

FISCAL YEAR 1st January - 31st December

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ABBREVIATIONS ADB African Development Bank ADF African Development Fund AG Attorney General AIDS Acquired Immunity Deficiency Syndrome BA Banco Austral BCM Commercial Bank of Mozambique BOM Bank of Mozambique CBPRP Capacity Building for Poverty Reduction Project CFAA Country Financial Accountability Assessment CPAR Country Procurement Assessment Review CSP Country Strategy Paper DANIDA Danish International Development Assistance DfID Department for International Development EC European Community GCCC Central Office for Combating Corruption GDP Gross Domestic Product GNP Gross National Product GoM Government of Mozambique GSPSR Global Strategy of Public Sector Reform EU European Union HDI Human Development Index HIPC Highly Indebted Poor Country Initiative ICT Information, Communications Technology IDA International Development Agency IFAD International Fund for Agricultural Development IMF International Monetary Fund INE National Institute of Statistics INAS Institute of Social Action INDER Institute for Rural Development I-PRSP Interim Poverty Reduction Strategy Paper LDC Less Developed Country MADER Ministry Of Agriculture and Rural Development MAE Ministry of State Administration MDGs Millennium Development Goals MF Ministry of Finance MIC Ministry of Industry and Commerce MICOA Ministry for the Co-ordination of Environmental Affairs MINED Ministry of Education MINT Ministry of Interior MISAU Ministry of Health MOPH Ministry of Public Works and Housing MPF Ministry of Planning and Finance MP Ministry of Planning MTEF Medium Term Expenditure Framework NGO Non-Government Organisation OSS One-Stop Shop PARPA Action Plan for the Reduction of Absolute Poverty PAF Performance Assessment Framework PER Public Expenditure Review PER-GROP II Second Programme of Economic Reform and Good Governance for the Reduction of

Poverty PRS Poverty Reduction Strategy

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PRSP Poverty Reduction Strategy Paper PSRP Public Sector Reform Program PSRDG Public Sector Reform Donor Group QWP Quick Win Programs SADC Southern African Development Co-operation SDC Swiss Development Co-operation SIDA Swedish International Development Cooperation Agency SIFAP System of Education in Public Administration SISTAFE Integrated Financial Management System SME Small and Medium Scale Enterprises UA Unit of Account UAC Anti-Corruption Unit UNDP United Nations Development Programme UTRESP Technical Unit for Public Sector Reform UTRAFE Technical Unit of the State Financial Administration Reform VAT Value Added Tax

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AFRICAN DEVELOPMENT FUND Temporary Relocation Agency

BP 323, 1002 Tunis Belvedere, Tunisia Tel: (216) 71 33 35 11

Telefax: (216) 71 35 19 35 E-mail: afdb@afdb.org

PROJECT INFORMATION SHEET

The information given below is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods, works and services for projects approved by the Board of Directors of the Bank Group. More details and guidance should be obtained from the Executing Agency of the Borrower. 1. COUNTRY : Republic of Mozambique 2. PROJECT TITLE : Institutional Support for Public Sector Reform 3. LOCATION : Maputo, Mozambique 4. BORROWER : Government of Mozambique 5. EXECUTING AGENCY : Ministry of State Administration (MAE) 6. PROJECT DESCRIPTION :

The project has two components: (i) the establishment of 6 One-Stop Shops that will

contribute to improve service delivery through decentralization and institutional restructuring and (ii) training activities set up by the Higher Institute of Public Administration (ISAP) directed to the managerial cadre within the public service. Both components will contribute to capacity building within the public sector and implement the Government of Mozambique Public Sector Reform Program objectives. 7. TOTAL COST: : UA 2.365 million 8. ADF GRANT : UA 2.126 million 9. OTHER SOURCES OF FINANCE Government of Mozambique (GoM) : UA 0.239 million 10. DATE OF APPROVAL : June 2005 11. STARTING DATE AND DURATION : August 2005 for 36 months 12. PROCUREMENT: All procurement of Goods and Services will be made in accordance with the Bank’s ‘Rules of Procedure for Procurement of Goods and Works.’ Procurement of consultancy and training services will be made in accordance with the Bank’s ‘Rules of Procedure for Use of Consultants.’

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13. CONSULTING SERVICES REQUIRED: Consultancy services will be required for the provision of on-the-job training and acquisition will be in accordance with Bank’s ‘Rules of Procedure for Use of Consultants’. The procedure for evaluation and selection of the consultant will be based on technical quality and price consideration. Project audit consultancy services will be acquired through limited competition on the basis of a short-list of firms in accordance with Bank’s ‘Rules of Procedure for Use of Consultants’. The procedure for evaluation and selection of the audit firm will be based on comparability of technical proposals and selection of the lowest financial offer.

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PROJECT MATRIX

Narrative Summary (NS) Verifiable Indicators(VI) Means of Verification Assumptions/Risks

1. Goal 1.1 The project is to contribute to

building the capacity of public service and implement GoM’s PSRP objectives

1.1 Improved service delivery capacity 1.2 Improved quality of civil service work force

1.1 Monitoring and

Evaluation Reports

1.2 MAE Reports 1.3 UTRESP Report

2. Project Objectives 2.1 The specific objectives are (i) to

improve service delivery through decentralization and institutional restructuring and (ii) to enhance professionalism within the Public Sector

Within 36 months it is expected an: 2.1 Improved (i) image of public services, (ii)

effectiveness and quality of services provided and (iii) decentralisation of state services

2.2 The verifiable indicators are the opening of six shops and the reduction of waiting time for the provision of OSS services in 50%

2.3 Improved (i) technical capacity, (ii) management systems, and (iii) productivity within public service

2.4 The verifiable indicators are the delivery of 34 courses (amounting to 17.710 hours) and the reduction of public servants (who participate in ISAP initiative) turnover to 50% of the present indicator

2.1 GoM Annual

Social and Economic Plan

2.2 Reports of

annual Expenditure Reviews undertaken by Government/donor

(Project Objective to Goal) 2.1 GoM commitment for the

successful implementation of sector reforms

2.2 GoM continued

commitment to implementing PRSP

2.3 Development partners

continued support

3. Outputs: 3.1 Improved capacity for service

delivery 3.2 Improved de-bureaucratisation

and transparency of State procedures

3.3 Improved public service

decentralisation 3.4 Improved capacity and

motivation for civil servants 3.5 Improved bonding and network

synergies among public servants 3.6 Improved gender equality

3.1 Opening of six OSS fully operational,

equipped and staffed (two in 2006 and four in 2007)

3.2 All the shops offering phase I services (see Chapter 4.5.3) within 36 months

3.3 Three of these shops should be in phase two offering 14 services in 2007

3.4 Two shops in Maputo, one in Beira, one in Nampula and the other two in Tete, Xai-Xai or Pemba

3.5 A minimum of thirty per cent of OSS work force and of the public servants selected for the ISAP courses should be women

3.6 100 public servants with CPSAP degree in 2006, 350 public servants in 2007 and 200 in 2008

3.7 20 high level public servants with a BPAP degree in year 2008, and other 25 attending a BPAP course

3.8 90 high level public servants with a PGPAP degree in year 2007

3.9 Organization of four seminars, ISAP internet site running and regular issuance of ISAP newsletters and magazines within 36 months

3.1 Quarterly

Progress Reports 3.2 Supervision

Reports 3.3 Project

Completion Report

3.4 Annual Audit

Reports

(Outputs to Project Objective) 3.1 Implementation difficulties

of the EA 3.2 Ministries will not free

staff to attend to courses 3.3 Trained staff will not be

retained

4. Activities/Components 4.1 Implementation of 6 OSS and

ISAP courses to train 700 public servants

4.2 Acquisition of equipment to implement both projects

4.3 Training activities for OSS workforce and ISAP lecturers

4.4 Networking activities for participants of ISAP courses

Appraisal Cost Estimates UA Thousands Category Cost 4.1 Civil Works 57 4.2 Goods 384 4.3 Technical Assistance 809 4.4 Training 648 4.5 Operating Costs 159 Total Base Cost 2,056 Contingencies: Physical 144 Price 164 Total 2,365

Source Total ADF 2,126 GoM 239 TOTAL 2,365

4.1 Appraisal

Estimates 4.2 Quarterly

Progress Reports 4.3 Supervision

Mission Reports 4.4 Annual Audit

Reports 4.5 Disbursement

Records 4.6 Project

Completion Report

(Activity to Output) 4.1 All procurement actions

are on schedule and in accordance with respective donor’s rules and procedures

4.2 Payments against invoices

are not delayed by the financing agencies and GoM

4.3 Effective supervision by

ADF

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Mozambique Summary Statistics

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EXECUTIVE SUMMARY 1. Project Background

The GoM recognizes that the successful implementation of its poverty reduction program

depends on improving its inefficient and highly bureaucratic public sector. Since 2001, the GoM embarked on the implementation of the Global Strategy for Public Sector Reform 2000–2011 (GSPSR) with focus on service delivery, decentralization, institutional restructuring, public sector professionalism, financial management and accountability, good governance and fight against corruption.

Donors have been strongly supportive of this reform and committed to provide the required external financial and technical assistance. While acknowledging the substantial contribution of other donors in supporting the Public Sector Reform Programme (PSRP), GoM requested the Bank Group to support the program as well. GoM’s initial request to the ADF presented at the time of negotiating the Second Program for Economic Reform and Good Governance (second semester of 2004), specified its need for support in the areas of: (i) service delivery through decentralisation and institutional restructuring; (ii) public sector professionalism; (iii) financial management and accountability; (iv) good governance and combating corruption. After consultations with donors, it was decided that, in order to avoid duplication of efforts by other partners, ADF would concentrate, for the moment, its support to the areas of service delivery and public sector professionalism. 2. Purpose of the Grant

The grant will support:

i) The establishment of six One-Stop Shops, defined as public services centres which concentrate in one place the provision of several services like: identification services (national identity card, passport, emigration services), tax and social security services, notary services, registration certificates (birth, marriage, property) and business licensing, and

ii) Training activities set up by the Higher Institute of Public Administration (ISAP) that

will train, in the first phase, 700 public servants holding managerial positions. 3 Sector Goal & Project Objectives

The sector goal of the project is to contribute to building the capacity of the public sector and implement GoM’s PSRP objectives. The specific objectives are: (i) to improve service delivery through decentralization and institutional restructuring; and (ii) to enhance professionalism within the public sector. The project is expected also to contribute to the improvement of the governance environment and by so doing help to satisfy a fundamental condition for growth and poverty reduction. 4 Brief Description of the Project Outputs

After 36 months the following main outputs are expected:

i) Opening of six One-Stop Shops, fully operational, equipped and staffed; ii) 650 high level public servants certified with CPSAP degree;

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iii) Organization of four seminars, ISAP internet site running and regular issuance of the ISAP newsletters and magazines; and

iv) A minimum of 30% of OSS work force and public servants selected for the ISAP courses should be women.

5. Project Cost

The estimated total cost of the project, net of all taxes and duties, is UA 2.365 million (US$

3.622 million) of which UA 1.885 million (US$ 2.888 million) is foreign cost and the balance of UA 0.479 million (US$ 0.735 million) is the local cost. 6. Sources of Finance

The project will be co-financed by grant resources of ADF and the Government of Mozambique. The total contribution of the ADF grant will be UA 2.126 million or 90% of the total cost of the project. GoM will finance the remaining 10% of the total cost, UA 0.239 million. 7. Project Implementation

The Ministry of State Administration (MAE) will be the Executing Agency responsible for project implementation. The MAE, with the assistance of UTRESP, will designate a Project Supervisor (PS) to facilitate, coordinate and monitor the day-to-day implementation of the project activities. The PS will be the ADF focal point and a member of MAE. 8. Conclusions

It is recommended that an ADF grant not exceeding UA 2.4 million be made available to the Government of Mozambique to support capacity building efforts in implementing the One-Stop Shop and ISAP projects. The grant will be subject to the conditions indicated in the Protocol Agreement.

1. INTRODUCTION 1.1 Origin and History of the Project 1.1.1 Despite its solid economic performance since 1992, Mozambique still faces daunting challenges. The country remains one of the poorest in the world, ranked by the UNDP in the 2004 Human Development Report at 172 out of 177 in terms of the Human Development Index (HDI). According to the 2002 household welfare survey, per capita income was about US$210 and nearly 40 per cent of its 18.5 million people live in absolute poverty. Furthermore, the economy is extremely vulnerable to external shocks resulting from weather vagaries and/or terms of trade changes. Growth sustainability depends on inflows of development assistance, foreign private investment and, in the medium-to long-term, on human capital formation. 1.1.2 In order to address the challenges of poverty, the Government of Mozambique (GoM) adopted an Action Plan for the Reduction of Absolute Poverty (PARPA 2001-2005), with the central objective of reducing absolute poverty and achieving the Millennium Development Goals. The Plan focuses on education, health, rural development, basic infrastructure, good governance and macro-economic and financial management. The GoM recognizes that the successful implementation of its poverty reduction program depends on improving its inefficient and highly bureaucratic public sector. Since 2001, the GoM embarked on the implementation of the Global Strategy for Public Sector Reform 2000–2011 (GSPSR) with a focus on (a) strengthening service delivery through decentralisation and institutional restructuring; (b) policy formulation and monitoring; (c) public sector professionalism; (d) financial management and accountability; (e) good governance and combating corruption; and (f) the management of the reform process itself. 1.1.3 Donors have been strongly supportive of these programs and committed themselves to provide the required external financial and technical assistance. In particular, the World Bank, UNDP, DfID, DANIDA, Norwegian and Irish Aid have been working in close coordination and have formed a Public Sector Reform Donor Group (PSRDG). While acknowledging the substantial contribution of other donors in supporting the Public Sector Reform Programme (PSRP), GoM requested the Bank Group to support the program as well. GoM’s initial request to the ADF presented at the time of negotiating the Second Program for Economic Reform and Good Governance (second semester of 2004), specified its need for support in the areas of: (a) service delivery through decentralisation and institutional restructuring; (c) public sector professionalism; (d) financial management and accountability; and (e) good governance and combating corruption. 1.1.4 After consultations with donors, it was decided that, in order to avoid duplication of efforts by other partners (especially DfID and the WB), ADF would, for the moment, concentrate its support in the areas of (a) service delivery through decentralisation and institutional restructuring and (c) public sector professionalism. Within these two areas, the Bank together with Technical Unit for Public Sector Reform (UTRESP), identified, in the February 2005 mission, two projects that specifically address these issues: (i) the establishment of One-Stop Shops to improve public services delivery and (ii) the development of training activities for public servants holding managerial positions. The project therefore addresses two activities, identified in the Global Strategy for Public Sector Reform 2000–2011 (GSPSR), that are part of a 10 years action plan previously agreed with the donors.

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2. PUBLIC SECTOR REFORM 2.1 Rational and Early Reform Efforts 2.1.1 In recognition of the widespread level of poverty, GoM adopted the Action Plan for the Reduction of Absolute Poverty (PARPA) 2001-2005, which aims at reducing the incidence of absolute poverty to 60% by 2005 and less than 50% by 2010, improving the social indicators and public service delivery. PARPA, however, underscores the leading role of the state in mobilizing society to address the causes of poverty in Mozambique and recognizes that public sector reform, with an emphasis on building human capacity both in the provision and consumption of public services, is key to reducing absolute poverty. This recognition is also supported by internationally acknowledged correlations between public sector performance and poverty alleviation, economic growth and the competitiveness of a country. 2.1.2 However the capacity of the Mozambican public sector to deliver quality public services remains limited. The sector is beset by: poorly qualified and unmotivated civil servants; high level of centralization; inefficient public service delivery; an inadequate financial management system; and widespread corruption. 2.1.3 Indeed, the average qualification of public servants remains low. A large majority is under-skilled for their responsibilities. To illustrate, out of approximately 110,000 civil servants, only 3% hold university degrees and only 12% have completed high-school. Additionally, a highly uneven geographical distribution of qualified staff exists, with the majority of the better educated employees based in the central administration, in the capital, Maputo. The current civil service structures are sclerotic and there are limited incentives for civil servants to perform their duties. Furthermore, an inadequately remunerated workforce within a weak accountability structure might be susceptible to widespread corruption. 2.1.4 For the most part, Mozambique’s public sector is a centralized system. The bulk of decision-making and service delivery still takes place at the central government level, despite the decentralization programme, whose implementation has also been very slow. Service delivery is inefficient and fragmented, caused by outdated laws and overly centralizing regulations inherited from the colonial period. The GoM structure is focused on sectors rather than integrated-service provision and involves complicated work processes. Additionally, the notion of accountability of public servants to the users and citizens is still relatively new, and participation of citizen groups or the private sector in the oversight of public administration, as well as in information sharing is still poorly developed. 2.1.5 The prolonged and violent civil strife, between 1975 and 1992, resulted in population displacement and the destruction of Mozambique’s infrastructure and productive assets. Following the end of hostilities, subsequent to the signing of the General Peace Agreement in 1992, the GoM undertook far reaching political, economic, and institutional reforms aimed at promoting good governance; enhancing the effectiveness of the public sector; generating broad-based growth; stimulating private investment; and expanding access to social services. However, in its efforts to achieve these objectives, GoM faced serious difficulties due to the absence of democratic institutions and culture, the existence of large macroeconomic imbalances, structural constraints, infrastructure bottlenecks, institutional capacity limitations and an ineffective public sector. The transition to peace and political stability was facilitated by the adoption, in 1990, of a new constitution, which guaranteed fundamental human rights, multiparty democracy and separation of powers. Since 1994, general,

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presidential and municipal elections were regularly organised with the last general elections held fairly and peacefully in December 2004. 2.1.6 In concert with the process of democratisation and decentralization, GoM adopted a number of measures to stabilize the macroeconomic environment, undertake institutional reforms and expand social services delivery. To achieve macroeconomic stability, GoM tried to adjust private and public consumption in line with the output level and external balance. The main elements of the programme were fiscal adjustment and structural reforms in such key areas as price deregulation, exchange rate and trade liberalization, resource mobilization, expenditure management, and public administration. 2.1.7 The response of the economy to the early reform measures was remarkable. The macroeconomic imbalances were reduced, price distortions were largely removed, and the regulatory framework for economic activities and private investment improved. Consequently, economic growth was restored with real GDP averaging 7% during the 1990s, price pressures receded and the external imbalance was reduced. However, Mozambique has continued to face widespread poverty, high vulnerability to external shocks, weak human capital, poor physical infrastructure, considerable dependence on aid, onerous debt servicing, and an inefficient public sector. 2.2 Reform Agenda 2.2.1 Following the 1999 elections, the then President established an Inter-Ministerial Committee for Public Sector Reform (CIRESP), chaired by the Prime Minister. CIRESP provides political leadership, reviews all reform proposals prior to submission to the Council of Ministers and monitors their implementation. In 2001, a Technical Unit for Public Sector Reform (UTRESP) was set up to prepare and implement the civil service reform. UTRESP consists of a small team of core specialists to provide technical guidance and coordination. The overall goals of the strategy, which was launched in June 2001, are: (i) redefine and reinforce the role of the State; (ii) improve the quality of service delivery; (iii) strengthen democratic participation of citizens at different levels of government; (iv) promote decentralization; (v) consolidation of mechanisms aimed at fighting corruption; and (vi) promotion of transparency and good governance. 2.2.2 The CIRESP supported by UTRESP has already introduced a number of major initiatives. Under the decentralization component, a new law on local authorities was passed, which provides the framework for the central government ministries to delegate some activities to the provinces. Complementary legislation for municipalities has been produced (one decree on movement of civil servants from state bodies to municipalities and vice versa, and another one on transfer of competencies from state bodies to municipalities). The monitoring of the interaction between “community authorities” and local state bodies (decree 15/2000) has been completed and administrative procedures for improving service delivery in districts and municipalities have also been introduced. 2.2.3 A Quick Wins Program (QWP) has been established to assist the Ministries sectors and provinces to implement visible, concrete service delivery projects. As part of bringing services closer to the public, the GoM has developed a program of opening ‘One-Stop Shops’(OSS). Several sector OSS have already been established by the Ministry of Industry and Commerce (MIC), and by the Instituto Nacional de Viação (INAV). For certain key “citizenship empowering services”, such as delivery of national identity documents, land registration, business registration, licence delivery, and visa issuance, the GoM intends to establish OSSs to reduce red tape, eliminate excess burden on end-users and reduce the cost of doing business.

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2.2.4 The preparation of a public sector outline and functional analyses of all Ministries already started and will be pursued in 2005 and 2006. Organisational restructuring plans which aim at improving the efficiency and the effectiveness of services will be derived from the outline. By December 2005, the GoM intends to complete functional analyses for the following five Ministries: Agriculture and Rural Development (MADER); Education (MINED); Industry and Trade (MIC); State Administration (MAE) and Health (MISAU). During 2006 these Ministries should complete their restructuring plans. 2.2.5 The generally low skill level among public sector employees combined with an inadequate incentive structure constrains development. The GoM intends to review its incentive structure so as to retain qualified employees in the public sector and to attract others with appropriate skills. Consequently, the April 2004 PRSP/PARPA Joint Review agreed to revise the Career Remuneration System (SCR) and to adopt, a Medium Term Pay Policy (MTPP). The GoM is also updating the data-base of public sector personnel with a view to eliminating ghost and temporary workers. It is intended that the 2005 budget will establish the principle that the average public sector wage increase should not exceed the rate of inflation, while at the same time performance-based incentives schemes will be implemented to reward the more productive employees. 2.2.6 With regard to public financial management, the Country Financial Accountability Assessment (CFAA) and the Country Procurement Assessment Review (CPAR), which were published in May 2002 and December 2001, respectively, identified a number of weaknesses requiring strengthening to avoid the risks of resource wastage, diversion and misuse of funds. Of particular concern have been the weaknesses of procurement regulations and practices and the limited transparency, leading to an inefficient use of public resources and a high vulnerability of the system to corruption. The GoM has then developed an action plan to reform procurement procedures and ensure that it meets approved international standards. The new procurement regulations are intended to modernise and render the procurement process more transparent and comprehensive. The GoM is planning to establish a Central Policy Directorate for procurement policy-making and monitoring, and to provide a comprehensive training programme for the dissemination of the new regulations to ministerial staff at the central and provincial levels. The GoM intends to ultimately link the procurement process with the financial management system, through a computerised system that would interface with the Integrated Financial Management System (SISTAFE). 2.2.7 The GoM recognizes the need for public service to be more transparent and accountable to its citizens. In 2001, the cabinet approved a National Anti-corruption Strategy and, in 2002, a specialized Anti-corruption Unit (UAC) within the Attorney General’s (AG) office was established. Additionally, a new anti-corruption law was approved in May 2004. The law outlines the establishment of a Central office for Combating Corruption (Gabinete Central de Combate a Corrupcao — GCCC) within the AG; and defines the scope of crimes the Central Office will investigate. The GoM also conducted an extensive survey on the state of governance and corruption in the country. The survey identified in great detail the nature, type, causes, and prevalence of corruption in Mozambique, and its findings were used as the basis for the revised National Anti-corruption Action Plan that should be approved in 2005.

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2.3 Donor’s Support to Public Sector Reform 2.3.1 Given the large resources required for reform, GoM has requested its development partners to assist in the PSRP implementation. The Public Sector Reform Donor Group (PSRDG) was then formed to provide support to the GoM. Some donors, namely DFID, DANIDA, Norway as well as the Irish Donor Agencies agreed to set up a common pool of funds (Common Fund). Other donors have continued to provide their support within the framework previously agreed but all participate in regular assessment meetings. The donor community main programs addressing PSR are summarized in Box 1.

Box 1 : Donor’s Support

World Bank

Capacity-Building in public sector and Legal Institutions development. Municipal Development and Decentralized Planning and Finance project

DANIDA

Support to Judicial System, Assembly of the Republic, Tax reform, SISTAFE, Justice sector

DfID

Support to Customs reform, MF, MP and UTRAFE

European Commission

Support to Justice, Finance and Treasury reform

IRISH AID

Support to improved Financial Management and Tax reform

Netherlands Embassy

Support to MP, MF and National Directorate of Water Affairs

Norwegian Embassy

Support to the continuation of the UNDP SIFAP project and to reform of Financial Management in the public sector

Portuguese Cooperation

Institutional Partnership for modern administration, for strengthening institutional capacity for Public Financing and support to Judiciary system

SIDA

Capacity building of the Administrative Tribunal and support to MAE

Swiss Development Cooperation

Support to Decentralization and Municipalities and to Fiscal reform

UNDP

Support to the Parliament, SIFAP, Decentralization process, Justice sector reform and global program for Accountability and Transparency

USAID

Support to MIC, Customs reform, Parliament, MTC, legislative strengthening and Accountability and Transparency initiative

Source: World Bank

2.3.2 According to UTRESP budget, the main contributors for the PSRP in 2005 are the Common Fund (US$ 8.5 million), the WB (US$ 6 million) and UNDP (US$ 0.7 million).

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3. AREAS OF FOCUS OF THE PROJECT 3.1 Improving Public Service Delivery 3.1.1 As part of the PSRP, the GoM developed the Quick Win Programs (QWPs), which are expected to lead to improvement of public services through rationalizing administrative processes, at relatively low costs, and in a relatively short timeframe, i.e., to attain quick and visible public administration reform results. An important example of the QWPs is the One-Stop Shops (OSS) concept. An OSS is defined as a place where a variety of diverse public services, ranging from identification services (national identity card, passport, emigration services), tax and social security services, notary services, registration certificates (birth, marriage, property) to business licensing is provided. 3.1.2 The Shops, which are meant to offer high quality, efficient and rapid services, will also help reducing the opportunities for corruption through increased transparency of procedures and reduction of bureaucracy. This concept will introduce a new model of interaction between the state, the citizens and businesses and therefore improve the State’s public image. 3.1.3 This project, although being coordinated by the MAE and UTRESP, will affect all the Ministries that presently are responsible for the provision of these services. It is expected that some Ministries would transfer staff and allocate premises to the project. 3.2 Enhancing Civil Servants Skills 3.2.1 There is a vast gap in the supply of qualified and skilled civil servants in Mozambique. It is generally believed that the average qualification of the civil servants in the country is low and that a significant number are performing duties and functions, for which they do no have the requisite qualification. There is special scarcity of those with university education working in administration and policy making. To address theis problem, the GoM introduced the System of Education in Public Administration (SIFAP) under the responsibility of the Ministry of State Administration. SIFAP helps to upgrade the educational and professional levels of the civil servants and support the public sector reform in general. 3.2.2 Currently, the Eduardo Mondlane Univeristy (UEM), the Higher Institute of International Relations (ISRI) and the Higher Institute of Science and Technology (ISCTEM) are the only providers of higher education in public administration. In 1998, the Department of Education and Research in social sciences of UEM started to offer a diploma in public administration for those with a B.A. In 2002, the ISRI started to offer a course in public administration, and, in 2003, the ISCTEM introduced a degree in public administration. However, these institutions graduate approximately only 40 students annually which is considerably below the needs of the Government. Moreover, since these courses are full time, civil servants rarely find the opportunity to join them. The shortage of local institutions that offer qualifications in public administration led to the creation of the Higher Institute of Public Administration (ISAP) by SIFAP in 2004 (Council of Ministers decree of CM 61/2004, of 29th December).

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4. THE PROJECT 4.1 Project Concept & Rationale 4.1.1 One of the key constraints, which have hampered the effective implementation of the Poverty Reduction Program, has been the weak institutional capacity in the public sector. In particular, the shift from a centrally-controlled economy towards a market oriented one, intensified the pressure for transparency and accountability in the public administration. In recognition of this problem, the GoM has embarked on the implementation of the PSRP. 4.1.2 During the Second Program for Economic Reform and Good Governance appraisal mission (second semester of 2004), the GoM asked for support in the undergoing PSRP, and more specifically in the areas of: (a) service delivery through decentralisation and institutional restructuring; (c) public sector professionalism; (d) financial management and accountability; and (e) good governance and combating corruption. In the February 2005 mission, after consultation with the PSRDG and UTRESP, it was decided that the most suitable projects to be supported by the Bank would be (i) the establishment of One-Stop Shops to improve public services delivery and (ii) the development of training activities for public servants through ISAP. 4.1.3 The proposed project is in line with the 2002-2004 CSP and 2005 CSP update that identified weak capacity in the civil service as one of the factors that inhibits development. The project is meant to enhance institutional capacity by contributing to skills formation and improvement in service delivery. This project will complement the assistance of several donors under the PSRP (see chapter 2.3) and the Second Program of Economic Reform and Good Governance for Poverty Reduction (PER GROP II), which is financed by the Fund and was approved in December 2004. 4.1.4 The project will also allow the Bank Group to undertake relevant diagnostic work in the PSRP, which will facilitate its future involvement in support of good governance, and therefore initiate a series of interventions in this key strategic area for poverty reduction. 4.1.5 The most similar project financed by the Bank Group in Mozambique is the Capacity Building for Poverty Reduction Project (CBPRP) approved in 1998. The objective of the operation, which is still on-going, is to strengthen national capacity to implement interventions for poverty reduction, through improving (i) capacity of the Institute of Social Action (INAS) to design, implement and monitor programs for the creation of sustainable income generating activities; and (ii) capacity of the Institute for Rural Development (INDER) to implement rural poverty reduction programmes. 4.1.6 The major lessons drawn from CBPRP implementation relate to the importance of GoM’s commitment and ownership, and the existence of local implementation capacity. The latter, as also recognized by the Public Sector Reform Donor Group, has been the main implementation constraint. Indeed, lack of institutional capacity and skills among the civil servants are the major factors for the poor performance and slow implementation of the CBPRP project. The shortage of skills, notably on (i) management, accounting and financial control, (ii) communication (serious deficiencies in official Bank languages), (iii) poor leadership, which resulted lack of strategic vision and plans to achieve project goals and objectives; and (iv) lack of knowledge of Bank rules for disbursement and procurement, had led to this situation. Another important factor has been the current salary and incentive structure. Many public sector departments have been loosing the most qualified staff to the private sector and donor agencies that are offering better packages. As a result, many departments are

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staffed with undereducated and under experienced employees, that often are entrusted the supervision of key Government departments or projects. 4.1.7 Based on these lessons, the Bank has recently undertook some actions to overcome these difficulties (please refer also to chapter 6.3 – Critical Risks & Mitigation Measures). The opening of the Regional Office, the training in Portuguese in Maputo on procurement and disbursement and the signing of cooperation agreements with the donor community (DfID and Memorandum of Understanding for the provision of Direct Budget and Balance of Payments Support with the Government of Mozambique and the Aid Partners) will enable the Bank to improve its project implementation abilities. 4.1.8 Also, the proposed project addresses directly some of the identified issues. The ISAP component would reduce the staff turnover (please refer to chapter 4.5.19 Component 2: Higher Institute of Public Administration (ISAP)), the PIU’s teams would include procurement and finance specialists, and the overall project’s goal is precisely to build public service capacity which will therefore reinforce the on going Bank´s efforts to improve its portfolio performance in the country. 4.2 Project Beneficiaries One-Stop Shop 4.2.1 The OSS focuses on improving the relationship between citizens and the State by providing better public services. The citizens and companies will be the major beneficiaries as a result of reduced transaction costs and improved convenience. In Brazil and Portugal, where this concept was introduced more than 10 years ago, the percentage of total population that yearly uses these services is between 4% and 8%. For Mozambique, and assuming a penetration rate of 4%, the direct beneficiaries may therefore account to 750,000 citizens per year. 4.2.2 Decentralization of services will also reduce the present over capacity of some services in the capital, Maputo, and therefore improve the overall working conditions and efficiency levels of civil servants. ISAP Courses 4.2.3 Main beneficiaries of the ISAP project will be civil servants who hold a position of Director or Chief at central and provincial levels. Particularly, there will be benefits for civil servants whose qualification is below their position and for officials with a specialized higher education (agronomy, medicine, engineering, etc.) who hold executive positions with a strong administrative component. 4.2.4 In August 2002, the GoM conducted an assessment of the education level of its public servants. The assessment was performed in the 10 most relevant Ministries with the objective of measuring the number of officials who have secondary education or specialized higher education and hold positions of Director or Chief. Based on the collected data, there are 671 civil servants with secondary education who are in a Director or Chief position. Of those, only 52 have Public Administration education. Similarly, of a total of 353 officials with higher education in a Director or Chief position, only 17 have higher education in Public Administration. Based on this assessment the direct beneficiaries from the project would be 955 civil servants (619 officials with secondary education and 336 with specialized higher education).

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4.3 Strategic Context 4.3.1 The project is fully consistent with GoM’s priorities and its goal of implementing the Strategy for the Reduction of Absolute Poverty (PARPA). The principal objective of the GoM’s strategy is to reduce the levels of absolute poverty through the implementation of measures aimed at improving the capacities and economic opportunities for Mozambicans. The existence of an effective and efficient civil service is a critical condition for achieving tangible results. The objective is to introduce new procedures, reinforce public institutions and enhance the capability of the civil service. The PSRP initiatives will reinforce the continuing shift from a centrally planned economy to a decentralized and market-based one. This would reinforce the change in the relationship between the state and the public, and assist in achieving transparency, accountability and good governance. 4.3.2 The low skills level within the civil service has adversely affected the GoM performance. The courses set up by the Higher Institute of Public Administration (ISAP) will contribute to improve the functioning of the GoM by providing high level training in public administration to the managerial cadre within the civil service The Global Strategy for Public Sector Reform (GSPSR) also foresees the establishment of One-Stop Shops as a means of improving public service delivery. GoM has already set-up such facilities for business and potential investors. It intends now to extend this concept to highly-demanded services for citizens. 4.3.3 The project is also in conformity with the Bank Group’s medium term strategy in the country as outlined in the 2002-2004 Country Strategy Paper. The Bank Group’s strategy focused essentially on human capital development, public utilities, multi-sector and good governance operations. The 2002-2004 CSP and 2005 CSP update identified weak capacity in the civil service as one of the factors that inhibits efficient and effective service delivery. 4.3.4 Under its vision, one of the Bank’s main strategic pillars is to play a leadership role in the promotion of good governance in its Regional Member Countries since the improvement of governance is key to achieve sustainable development and poverty reduction. For Mozambique, the Bank is presently preparing a Country Governance Profile (CGP) that will (i) outline the major governance issues, (ii) review the existing policy and institutional framework for promoting good governance, (iii) serve as an input into the formulation of the Bank's intervention strategies in Mozambique, and (iv) be used to identify specific governance projects and programmes for Bank financing. The proposed project reinforces the CGP goals since not only does promote good governance directly but will also help to access further support opportunities in this area. 4.4 Project Objectives 4.4.1 The sector goal of the project is to contribute to building the capacity of the public sector and implement GoM’s PSRP objectives. The specific objectives are: (i) to improve service delivery through decentralization and institutional restructuring; and (ii) to enhance professionalism within the public sector. The project is expected also to contribute to the improvement of the governance environment and by so doing help to satisfy a fundamental condition for growth and poverty reduction. 4.4.2 The grant will support:

i) The establishment of six One-Stop Shops ii) Training activities set up by the Higher Institute of Public Administration (ISAP)

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4.5 Detailed Description of Project Components Component 1: One-Stop Shops 4.5.1 This initiative was inspired by the highly successful Brazilian (www.poupatempo.sp.gov.br) and Portuguese (www.lojadocidadao.pt) One-Stop Shops projects. In these countries, this concept revolutionized the relationship between the State and the citizens. Both the level of bureaucracy and the waiting time for public services reduced dramatically. 4.5.2 The GoM plans to open the first Shops with simple services and gradually increase the range and complexity of services provided. The OSSs would be located in easily accessible places. A reception desk will be set up in the waiting area to address queries and to direct clients to the appropriate counter. The queuing system will be supported by an automated ticketing dispenser. The staff, wearing standardized uniforms and badges, will be properly trained to provide a superior service. New ways of state-citizen interaction would be inaugurated, like increase usage of mail and email to exchange information, thus introducing some elements of E-Government. 4.5.3 A minimum of 10 services are expected to be transformed to enable a smooth transition of services to the OSS. Out of these 10 services, 5 should necessarily relate to: (i) identification services (national identity card, passport, emigration services); (ii) tax and social security issues; (iii) notary services; (iv) registration certificates (birth, marriage, property); and (v) business licensing. The content of the remaining 5 services, which may range from (vi) public utilities services (payment, contracts), (vii) driving license and road authorities services (viii) Ministry of Health Helpdesk, (ix) Ministry of Education Helpdesk to (x) communication facilities (fax, email, photocopies, etc) would be adjusted to the specific needs of each city/province. 4.5.4 Critical factors necessary for the OSS success include easy accessibility, the staff capacity to provide a quality service and their attitude towards the public, a reliable IT system properly connected to the service headquarters and a clear and easy to implement procedures manual. The OSS will also raise the public’s expectations, which will demand quicker services. The GoM would continuously monitor the delivery of services, conduct customer satisfaction surveys and establish a system for receiving complaints. 4.5.5 ADF support will contribute to the establishment of six One Stop Shops: two in Maputo, one in Nampula, one in Beira and the remaining two in Tete, Xai-Xai or Pemba. Setting up these shops requires technical assistance to enhance GoM implementation capacity, trained staff and supply of requisite logistics. This component would involve the following activities:

i) Consultancy services to implement the project; ii) Training of staff; and iii) Supply of equipments and rehabilitation of physical infrastructure to install the OSS.

Activity 1: Consultancy Services for Project Implementation 4.5.6 To implement the project, a Project Management Task Force (PMTF) would be established. The PMTF would include a Project Coordinator, an International Advisor, two Project Executives, one Project Assistant, and an OSS Team for each shop that will be open in each year, composed of an executive and an assistant (See Annex 8). The PMTF, with the exemption of the OSS Team, would be hired under yearly renewed contracts during the project period (three years). The OSS Team would

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have a single 18 months contract. Following that period the OSS Team should be nominated by the GoM. The ToRs of the consultancy company, Project Coordinator, Project Executives and Project Assistants are attached in Annex 9. 4.5.7 The PMTF should conduct a Project Initiation Document (PID), which is a business plan type of document that describes all the implementation stages to set up the OSS. The OSS would be established in two phases, with sequential introduction of services, starting from the fairly simple services that would not require much preparation (phase I) to the more complex services that would require more coordination between the ministries (phase II). Activity 2: Training 4.5.8 The staff assigned to One-Stop Shops are existing public servants that will be transferred from the Ministries involved in this project. The selection criteria will be defined under the PID and its timing will follow the project chronogram (Annex 4). 4.5.9 Capacity building is critical for the establishment, efficient operation, and continuous development of the One-Stop Shops. The management units need training on the managerial concept behind the One-Stop Shops and ICT developments. The selected civil servants must be familiarized with the new work processes, OSS operational manuals, ICT systems and the new public relation approach before the opening of the Shops. 4.5.10 The training would comprise a five-day course provided by the OSS National Executive Committee (see chapter 5.2) and a twenty-five day course provided by the International Advisor. Each shop operating in phase I should employ a minimum of ten public servants. The training will also consider study trips to visit in loco fully functional One-Stop Shops in Brazil or Portugal. Activity 3: Procurement of equipment and furniture and preparation of the infrastructure 4.5.11 The OSS premises will work on existing GoM buildings that would need some refurbishments in order to comply with standard OSS image and functionalities. 4.5.12 To operate effectively, the OSS would require installation of a common IT platform with standard software that would bring together the databases of the services that should be included in the OSS. This undertaking would involve the procurement of relevant computer equipment as well as the installation of the needed software. The furniture and other image components should be standardized across all shops and its main features should be defined under the PID. Outputs 4.5.13 To fulfil the objectives of this project, the following outputs are expected within 36 months after its initiation:

i) Opening of six OSS, fully operational, equipped and staffed; ii) All the shops offering phase I services (a minimum of 10 with 5 of them as described in

paragraph 4.5.3); iii) Three of these shops should be in phase II offering a minimum of 14 services; iv) Four of these shops should be outside Maputo; and v) A minimum of 30% of OSS work force should be women.

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4.5.14 There are also some intermediate outputs after 2006, 2007 and 2008. Please refer to OSS project chronogram and description of its activities in Annex 5. Component 2: Higher Institute of Public Administration (ISAP) 4.5.15 This component focus is to give public administration training for government officials in all Ministries who hold managerial positions and ultimately to enhance capacity building across the public sector. The ISAP courses will: (i) minimise “on leave” factor since most students are in service civil servants; (ii) allow diffusion across the public sector apparatus; and (iii) be directed primarily towards institutions needs rather than individuals. 4.5.16 ISAP will provide three types of diplomas. The Higher Professional Diploma in Public Administration (CPSAP) will be offered to high-level civil servants, who do not have university degrees in Public Administration. The CPSAP itself will be split into a course where students hold a BA degree (CPSAP Type1) and a course for students without BA degrees (CPSAP Type2). The CPSAP will consist of 6 modules and takes 30 weeks to complete. 4.5.17 To give participants an additional incentive, complements to the main course (CPSAP) would be introduced to allow participants to access higher education degrees. According to the course program, if the participant already has a bachelor degree, he/she would have the opportunity to progress into the PGPAP complementary models in order to attain a master degree. If the participant does not have higher education, it will be possible after completing the main course (CPSAP), to continue with the BPAP modules to achieve a bachelor degree. (see Annex 2 for CPSAP Outlook and Diplomas Awarded). 4.5.18 The CPSAP, the BPAP and PGPAP courses can be taught in a continuous and modular manner, which, if grouped, would be equivalent to the respective diploma. These diplomas will have equivalence in the Education National System (SNE). 4.5.19 In coordination with ISAP, each Ministry should select its representatives for the program. However each participant would have to sign a fidelity contract with its employer to ensure sustainability of the project objectives. Each participant of the CPSAP course would pay a penalty, based on the course cost per student, if he/she would break its working contract within 2 years after the course completion. For the BPAP and PGPAP courses the tag along period would be extended to 4 years. 4.5.20 ADF will assist the High Institute of Public Administration (ISAP) in setting up training activities. The courses would require the design and preparation of training materials, recruitment of lecturers, selection of participants and the supply of logistics. This component would involve the following activities:

i) Implementation & Development of training courses; ii) Complete ISAP’s infrastructure and equipment; and iii) Establishment of trainees network.

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Activity 1: Implementation & Development of training courses 4.5.21 In the past years, SIFAP has developed training courses and workshops on public administration with the participation of several consultants, university lecturers and high-level public servants. The courses structure (Annex 9) and curricula are based on these activities. These courses will directly address the commonly identified weaknesses of the Mozambican public service, namely: communication and IT skills, governance, ethics, human resources, leadership, public policies, economics & financial management, organisational development, etc. The project comprises additional training sessions for lecturers since some of them may not be fully aware of the project’s goals. 4.5.22 The ISAP Board will be chaired by a representative of the Ministry of Central Administration (MAE) and include representatives of SIFAP and UTRESP. The main function of the Board will be to oversee the overall project implementation. The technical team for this component would be the ISAP. Given the high commitment of GoM to this project component, it has already selected a ISAP General Director (Annex 7). Most of the lecturers were already contacted and will work on a free-lance basis (See Annex 8 for ToR of lecturers). 4.5.23 The implementation of courses will follow four main batches:

1) Fist Batch: 4 CPSAP Courses

2) Second Batch: 6 CPSAP Courses

3) Third Batch: 9 CPSAP Courses 2 PGPAP Courses 1 BPAP Courses

4) Fourth Batch: 9 CPSAP Courses 2 PGPAP Courses 1 BPAP Courses

Activity 2: Complete ISAP’s infrastructure and equipment 4.5.24 The GoM also located premises for the ISAP and its renting costs are included in the 2005 National Budget. The remaining start up costs (IT equipment and furniture) will be financed by ADF. Activity 3: Establishment of trainees’ network 4.5.25 To maintain the network of trainees and increase the impact of capacity building, ISAP will (i) organize seminars covering common concerns of public administration; (ii) set up an ISAP internet site with online training resources; and (iii) create a quarterly newsletter and a bi-annual magazine. Outputs 4.5.26 To fulfil the objectives of this project, the following outputs are expected within 36 months after its initiation:

i) 650 high level public servants certified with CPSAP degree; ii) 20 high level public servants certified with a BPAP degree, and other 25 attending a BPAP

course; iii) 90 high level public servants certified with a PGPAP degree;

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iv) Organization of four seminars, ISAP internet site running and regular issuance of the ISAP newsletters and magazines; and

v) A minimum of 30% of the public servants selected for these courses should be women. 4.5.27 There are also some intermediate outputs after 2006, 2007 and 2008. Please refer to ISAP

project chronogram and description of project activities in Annex 6. 4.6 Project Costs 4.6.1 The estimated total cost of the project, net of all taxes and duties, is UA 2.365 million (US$ 3.622 million) of which UA 1.885 million (US$ 2.888 million) is foreign cost and the balance of UA 0.479 million (US$ 0.735 million) is the local cost. These costs were discussed during the preparation/appraisal mission, which was undertaken in February 2005. In preparing the estimates, a provision was made for physical contingencies of 7% and price contingencies of 8%. Table 4.1 presents the summarised project cost, which has been estimated by component, as given below:

Table 4.1 Summary of Project Cost Estimates By Component

FC LC Total FC LC Total(Unit '000)

Component 1 - OSS 1.824 398 2.223 1.191 260 1.451Consultancy Services 1.122 117 1.239 732 77 809Equipment 518 84 602 338 55 393Training 185 31 216 120 20 141Operating costs 0 166 166 0 108 108

Component 2 - ISAP 687 241 927 448 157 605Training 597 141 738 390 92 482Equipment 70 3 73 46 2 47Trainees network 19 19 39 13 13 25Operating costs 0 77 77 0 51 51

Total Base Cost 2.511 639 3.150 1.639 417 2.056Physical Contingency @ 7% 176 45 220 115 29 144Price Contingency @ 8% 201 51 252 131 33 164

Grand Total 2.888 735 3.622 1.885 479 2.365

USD UAActivities Costs

4.6.2 See Annexes 3 (OSS component) and 5 (ISAP component) for detailed project costs. The cost estimates by category of expenditure are given in Table 4.2.

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Table 4.2 Summary of Project Cost by Category of Expenditure

FC LC Total FC LC Total(Unit '000)

Investment CostsCivil Works 0 87 87 0 57 57Goods 588 0 588 384 0 384Technical Assistance 1.122 117 1.239 732 77 809Training 801 191 993 523 125 648

Recurent CostsOperating Costs 0 243 243 0 159 159

Total 2.511 639 3.150 1.639 417 2.056Physical Contingency @ 7% 176 45 220 115 29 144Price Contingency @ 8% 201 51 252 131 33 164

Grand Total 2.888 735 3.622 1.885 479 2.365

Category of Expenditure USD UA

4.7 Sources of Financing and Expenditure Schedule 4.7.1 The project will be co-financed by grant resources of ADF and the Government of Mozambique. The total contribution of the ADF grant will be UA 2.126 million or 90% of the total cost of the project. GoM will finance the remaining 10% of the total cost, as shown in table 4.3.

Table 4.3

Summary of Sources of Financing

FC LC Total FC LC Total(Unit '000 )

ADF 2.888 369 3.256 1.885 241 2.126 90%GoM 0 366 366 0 239 239 10%

Total 2.888 735 3.622 1.885 479 2.365 100%

%USD UASource of Financing

4.7.2 Provisional expenditure schedules by component and source of finance are shown in Tables 4.4 and 4.5, respectively.

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Table 4.4 Expenditure Schedule by Component

USD UA USD UA USD UA(Unit '000)

Component 1 - OSS 689 450 836 546 697 455Consultancy Services 393 257 537 351 309 202Equipment 164 107 203 132 236 154Training 77 51 41 27 97 63Operating costs 55 36 55 36 55 36

Component 2 - ISAP 304 199 349 228 274 179Training 186 121 304 199 248 162Equipment 73 47 0 0 0 0Trainees network 20 13 19 12 0 0Operating costs 26 17 26 17 26 17

Total Base Cost 994 649 1.185 773 971 634Physical Contingency @ 7% 70 45 83 54 68 44Price Contingency @ 8% 80 52 95 62 78 51

Grand Total 1.143 746 1.363 890 1.116 729

Activities Costs Year N Year N+1 Year N+2

Table 4.5 Expenditure Schedule by Sources of Financing

USD UA USD UA USD UA USD UA(Unit '000 )

ADF 1.060 692 1.221 797 975 636 3.256 2.126GoM 83 54 141 92 141 92 366 239

Total 1.143 746 1.363 890 1.116 729 3.622 2.365

TotalSource of Financing Year N Year N+1 Year N+2

5. PROJECT IMPLEMENTATION 5.1 Executing Agency 5.1.1 The MAE will be the Executing Agency responsible for project implementation. The MAE, with the assistance of UTRESP, will designate a Project Supervisor (PS) to facilitate, coordinate and monitor the project activities. The PS will be the ADF focal point and a member of MAE. The PS will be accountable for disbursement and monitoring issues but will be technically supported by the two implementation units. The PS will also participate in the executive committees of the two project components: the OSS National Executive Committee and ISAP Board of Directors (See Annex 7).

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5.2 Institutional Arrangements 5.2.1 To provide political leadership for the PSRP, the President and the Council of Ministers established the Inter-ministerial Commission for the Reform of the Public Sector (CIRESP). The Prime Minister, as chairperson of CIRESP, is responsible on behalf of the Government for the implementation of the Public Sector Reform Strategy and will be ultimately accountable for achieving the project’s objectives. The Minister of State Administration is the vice-president of CIRESP. Other members include the Ministers of Justice, Public Works and Housing, Education, Planning, Finance, Agriculture, Tourism, Industry and Trade, Labour and Health. CIRESP reviews all proposals for reform prior to their submission to the Council of Ministers (CM) and monitors the implementation of the reform programme. CIRESP is supported by the Technical Unit for the Reform of the Public Sector (UTRESP). 5.2.2 The OSS National Executive Committee will be chaired by the Ministry of State and Administration and will include representatives from the Ministries involved in the project (Annex 7). Its objectives will be to develop OSS national policies, unlock legal constraints, sensitise the State apparatus on the project objectives and oversee its implementation. 5.2.3 Each component will have a separate operational implementation unit: (i) for the OSS component, the Project Management Task Force (PMTF) and (ii) for the ISAP component, the ISAP itself (Annex 7). The project implementation units’ staff would have the required operational, financial and procurement skills to support the PS and the Executive Committees. 5.2.4 The OSS National Executive Committee and ISAP Board of Directors will meet quarterly. The minutes of its meetings will be forwarded by the PS to the Fund. Under the authority of these two institutions, the PMTF and ISAP will undertake timely preparation and transmission of the quarterly reports and other documents required under the project. The PMTF and ISAP will also keep accounts that will enable the monitoring and control of expenditure by category to be performed effectively. A suitable qualified external auditor will audit both components of the project annually. 5.3 Supervision and Implementation Schedules 5.3.1 The project will be implemented over a period of 36 months starting immediately after its effectiveness, expected to take place in August 2005. The main dates of the implementation schedule are provided below.

Table 5.1: Implementation Schedule Activity Responsible Agency Target Date Board Presentation ADF June 2005 Signing of Grant Protocol ADF/GoM June 2005 Establishment of PS, PMTF and ISAP GoM July 2005 Grant Effectiveness / Launching of Project GoM/ADF August 2005 Project Initiation Document Approval GoM November 2005 Opening of the first OSS GoM April 2006 First CPSAP batch completed GoM May 2006 Recruitment of Auditor ADF/GoM October 2005 Submission of First Audit Report, which will be considered during Mid-Term Review

ADF/GoM April 2006

Submission of Project Completion Report GoM May 2008 Preparation of Bank’s Completion Report ADF July 2009

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5.3.2 A launching mission will be undertaken within two months after signature of the Grant Protocol Agreement. Overall supervision by the Fund will amount to two field supervision missions per year. One of the missions should include a disbursement specialist. The Regional Office will assist in supervising the implementation of the project. The supervision missions will, inter alia, be used to review the progress in the implementation of the project’s components and assess the project’s overall performance. 5.4 Procurement Arrangements 5.4.1 Procurement arrangements are summarised in Table 5.2 below. All procurement of goods, works and acquisition of consulting services financed by the Fund will be in accordance with the Bank’s Rules of Procedure for Procurement of Goods and Works or, as appropriate, Rules of Procedure for the Use of Consultants, using the relevant Bank Standard Bidding Documents.

Table 5.2 Procurement Arrangements

Civil Works 5.4.2 All contracts for civil works are valued at above UA 7,000 each and will be awarded under National Competitive Bidding (NCB) procedures. There will be seven contracts that will be packaged appropriately into lots. The choice for NCB is justified since the character, location and size of the construction works are such that are unlikely to attract bids from outside the country. Also, local contractors are sufficiently qualified and in a number sufficient to ensure competitive bidding. Goods 5.4.3 All contracts for goods valued at above UA 10,000 each will be awarded under National Competitive Bidding (NCB) procedures. For each shop, the total IT equipment contract, amounts to UA 37.000 and the furniture contract amounts to UA 16.700. The contracts will be packaged appropriately into lots. For ISAP the total IT contract amounts to UA 30.000 and the furniture contract

NCB Shortlist Other* Non Bank Funded Total

1. Civil Works1.1 Rehabilitation 65 0 65

(63) (63)2. Goods

2.1 Equipment & Machinery 411 30 441 (411) (30) (441)

3. Consultancy Services3.1 Technical Assistance 1,002 1 1,002

(827) (827)

3.2 Training 673 673 (673) (673)

4. Miscellaneous4.1 Operating Costs 122 61 182

(122) (122)

Total 476 1,675 152 61 2,365 (474) (1,500) (152) (2,126)

* Includes National Shopping and existing GoM procedures.�

Project CategoriesUA '000

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to UA 5,600. The choice for NCB is justified since the quantity and value of the goods are such that are unlikely to attract bids from outside the country. Also, the potential advantages of competitive bidding for supply of this amount of goods would be neutralized by the administrative or financial burden involved. Contracts below UA 10,000 and other miscellaneous goods, like divulgation material, books and uniforms, will be procured through National Shopping procedures since these involve off-the shelf goods that are small in value and can be easily acquired in the borrowing country. Consulting Services 5.4.4 Procurement of consulting services that involve both international and national consulting companies regarding the implementation of One-Stop Shops will total UA 982,000. The procurement of consulting services will be undertaken on the basis of shortlists, in accordance with the Bank’s ‘Rules of Procedure for the Use of Consultants’. There will be a maximum of thirteen contracts and the selection procedure will be based on the technical quality with price consideration. Where the amount of the contract does not exceed UA 350,000, the Government may limit the publication of the invitation for proposals to national or regional newspapers. However, any eligible individual consultant, regional or not, may express the desire to be short-listed. 5.4.5 The services of an auditing firm (estimated cost of UA 20,000) will be acquired through a shortlist. The selection procedure will be based on establishing the comparability of technical proposals and selection of the lowest financial offer. 5.4.6 Procurement of various training activities will be contracted to appropriate regional institutions, trainers, or service providers through shortlists acceptable to the Bank. The selection procedure will be based on establishing the comparability of technical proposals and selection of the lowest financial offer. Miscellaneous 5.4.7 Other miscellaneous items, like the running costs for the two project components, will be procured through existing GoM procedures acceptable to the Bank. National Procedures and Regulations 5.4.8 Mozambique’s national procurement laws and regulations have been reviewed and determined to be acceptable. Executing Agency 5.4.9 The Ministry of State Administration (MAE) will be responsible for the procurement of goods, works and services. GoM has been executing similar projects financed by the Bank (and other donors) and is familiar with Bank Group procurement rules and procedures. General Procurement Notice 5.4.10 The text of the General Procurement Notice (GPN) will be agreed with the GoM and will be issued for publication in the United Nations Development Business (UNDB) upon approval by the Board of Directors of the Grant Proposal.

20

Review Procedures 5.4.11 The following documents are subject to review and approval by the Bank before promulgation:

i) Specific Procurement Notices; ii) Tender Documents or Requests for Proposals from Consultants; iii) Shortlists of consultants iv) Tender Evaluation Reports or Reports of Evaluation of Consultants’ Proposals, including

recommendations for Contract Award; and v) Draft contracts, if these have been amended from the drafts included in the tender invitation

documents. 5.5 Disbursement Arrangements 5.5.1 Disbursement will be in accordance with the Bank’s Rules of Procedures for Disbursement. Disbursement will be mainly through the use of Revolving Fund/ Special Account and the Direct Payment methods depending on the size and the rules relative to disbursement thresholds. A work programme and budget will be prepared for the first year, approved by the Fund, and then the first tranche will be disbursed accordingly. The Executing Agency will open a convertible foreign currency account in a bank acceptable to the ADF for this project. The grant resources required to meet the ADF’s share will be deposited in this special account and will be operated as a revolving fund. The ADF will replenish the special account, at the request of the Executing Agency, after sufficient justification for the use of at least 50% of the previous deposit has been provided. The justifications will be related to accomplishments of the intermediate project objectives as described in the Chronograms attached in Annexes 4 and 6. A tentative plan for major disbursements is presented in table 5.3.

Table 5.3 Tentative Disbursement Calendar

1 T 2 T 3 T 4T 1 T 2 T 3 T 4T 1 T 2 T 3 T 4T(Unit: UA '000)

OSSProject DesignOpening Shop 1 and 2Opening Shop 3 and 4 and Extension of Shop 1Opening Shop 5 and 6 and Extension of Shop 2 and 3

ISAPISAP Set upFirst BatchSecond BatchThird BatchFourth Batch

DisbursementsFirst Disbursement 649Second Disbursement 773Third Disbursement 634

Main Project Activities Year N Year N+1 Year N+2

5.5.2 The Government is required to keep the necessary records and accounts of the project in accordance with accepted accounting practices. The Executing agency will also be required to have the accounts of the project audited annually by certified public accountant or independent auditor. Non-compliance with this provision could lead to suspension of disbursement on the project. The audit report together with supporting documents should be submitted to the ADF.

21

5.6 Monitoring and Evaluation 5.6.1 The monitoring of project implementation will be done through Quarterly Progress Reports, which will be prepared by the Executing Agency (EA) in the Bank's format and submitted to the Bank. These reports will contain the status of the project execution in terms of physical progress and will highlight key issues and problem areas hampering the implementation of the project. The EA will also recommend action plans for resolving identified bottlenecks. In addition, the progress report will provide up to-date data on the financial implementation of the project including the disbursement status of each component as well as the invoiced submitted and paid by the ADF. 5.6.2 The implementation of the project will be monitored through the ADF’s regular field supervision missions. The supervision and review processes will involve thorough assessment of the project’s achievements against target set out in the implementation schedule. The project will also be reviewed six (6) months after its commencement to ensure timely implementation of the different activities under the components of the project, followed by regular supervision until its completion. The EA will also be required to prepare and submit to the Fund a Project Completion Report (PCR) within six months after completion. The ADF will prepare its own PCR thereafter. 5.7 Financial Reporting and Auditing

MAE will keep separate accounts for the project in accordance with sound and acceptable accounting practices. This should allow identification of expenditures by component, category and source of finance. MAE will be required to submit to the Fund, annually throughout the period of implementation of the project, consolidated accounts covering the project’s operations in the previous year. An independent external auditor acceptable to the ADF will carry out the audit and provisions have been made in the project budget for the cost of the audits. The selected auditor shall also refer to the Bank’s guidelines for auditing projects. The annual audit report and accompanying financial statements, including bank statements and statement of expenditure, will be submitted to the ADF for review no later than six months after closure of the financial year. 5.8 Aid Co-ordination 5.8.1 Mozambique enjoys the strong support of the donor community. The donors have organized themselves into a loose association called the Program Aid Partners (PAP), and agreed on a framework for coordinating their activities in the country. The PAP, which currently comprise 16 bilateral and multilateral donor agencies (G16)1, support a joint program for providing budget support to the GoM, and have signed a Memorandum of Understanding with the Government. The PAP have agreed on a Performance Assessment Framework (PAF) with the GoM, with specific time-bound targets to be met by the Government over a whole range of economic, social and political issues. Donor coordination and the monitoring of the GoM’s performance against the PAF targets is achieved through the establishment of 23 working groups distributed over five thematic areas. With the help of the WGs, the PAP carries biannual Joint Reviews of the GoM’s performance. The ADB has participating in the donor coordination framework through the Bank’s Country Program Coordinator in Mozambique.

1 Participating external partners include Belgium, Denmark, Canada, the European Commission, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Sweden, Switzerland, the United Kingdom and the World Bank. Observing external partners included: Japan, Spain, the United States, the International Monetary Fund and the African Development Bank

22

5.8.2 Specifically in the PSRP, the UTRESP is in charge of coordinating the PSRDG activity. Most of donors have local offices and hold, every two weeks, meetings to assess and monitor PSR projects implementation. Presently, DfID chairs the Public Sector Reform Donor Group and therefore plays a key role, together with UTRESP, in coordinating donors’ assistance in the country. The Common Fund members have harmonized appraisal, disbursement and monitoring procedures. The remaining donors, including the WB, although taking part of the Public Sector Reform Donor Group, appraise and evaluate each proposal independently and follow their own disbursement and monitoring procedures. 5.8.3 The Bank intends to actively participate in the PSRDG after the opening of the Mozambique Regional Office and to monitor routine reports submitted by donors. The Bank intends to continue to support the PSRP efforts in the future, and expects, after the opening of the Regional Office, to be able to appraise and implement the next project within a donor harmonized framework. Although the Bank does not still belong to the PSRDG, it submitted this report to the PSRDG for revision and took its comments into consideration. 6. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent Costs For the ISAP component, the Bank will not finance the operating costs beyond the project lifetime, that is, once the envisaged training activities are completed. After the 36 months, the GoM will assume the operational cost that will be adjusted to the activities the GoM will then design for the ISAP. The One-Stop Shops are essentially functional dependencies of the respective Ministries that will transfer some of their public servants and premises to these units. Once the Shops are established with set up investments done, they will not represent for the Ministries significantly more costs than those they have now. The GoM, after the 36 months implementation period, will assume the OSS running costs that will be fully integrated into the operating budgets of the concerned Ministries. However, once the concept is embraced by the public, the Shops may charge a service fee to compensate for the incremental costs the GoM will have to run them, as it is presently done in the Loja do Cidadao (Citizen Shop), in Portugal, and Poupa Tempo (Saving Time Shop), in Brazil. 6.2 Project Sustainability 6.2.1 The GoM is increasingly showing ownership of its reform agenda and is committed to the implementation of the public sector reform program. The GoM has included recurrent expenditure within the medium term budgeting and planning processes. Donors have also shown great interest in supporting these reforms and have agreed with GoM on an action plan and established several policy dialogue tools like the Performance Assessment Framework, PARPA and the Public Sector Reform Donor Group (PSRDG). This project addresses two activities, identified in the Global Strategy for Public Sector Reform 2000–2011 (GSPSR), that are part of a 10 years action plan previously agreed with the donors. The Bank intends to continue to support efforts within the PSR that might include, in 36 months, the reinforcement of these two components. 6.2.2 Besides the generic long term benefits for the PSR, each one the components will generate specific sustainability conditions for further development. The ISAP courses were designed to address a specific need identified within the public sector. After this 36 months program, the ISAP, with a valuable human and physical infrastructures set up, will have the conditions to more effectively formulate similar programs. Regarding the OSS component, it should be stressed that it was designed to set up a concept, whose major investments are covered by this project, and not to replace the GoM

23

in its responsibilities towards the public servants, i.e., it is not a budget support project. Nonetheless, if the project is successfully implemented, the OSS will create enduring conditions for better service delivery and state governance. 6.3 Critical Risks & Mitigation Measures 6.3.1 There are four potential risks, which could hold back the project from achieving its expected development objectives. The first risk arises from any weakening in GoM commitment, which will be reflected in laxity and failure to provide adequate budgetary and personnel resources and effectively monitor implementation. The GoM has evidently shown great commitment to the reform program and has assigned a high level for monitoring and directing implementation. The project supervising committees include very high GoM officials. CIRESP is chaired by the Prime-Minister. The elevated involvement of donors in the financial support and dialogue with the GoM will also mitigate against any weakening of commitment from the side of the GoM or the donors. The PSRDG is one of the major donor groups in the country and enjoys a high degree of influential capacity within the PRSP and the GoM. The delays in the provision of counterpart funds to projects, in some cases, can be due to slowness in the flow of support by donors. For its part, the Bank will soon sign the Memorandum of Understanding for the provision of Direct Budget and Balance of Payments Support with the Government of Mozambique and the Aid Partners, which would eliminate the unpredictability associated with release of donor funding, and hence render financial planning and budgeting more effective for the GoM. 6.3.2 The second risk relates to possible implementation difficulties due to EA capacity limitations. Indeed, the GoM and donors have recognized the risk of capacity limitations and are working to strengthen the capacity of UTRESP. The majority of UTRESP staff is presently financed by the donor community. The Bank also acknowledges the problem, and for its part, is preparing a course in Portuguese to be held in Maputo for GoM officials on procurement and disbursement. These two areas were identified by recent Bank supervision missions to the country as the most relevant to improve project implementation capability. The Bank’s opening of its regional office in Maputo will also contribute to improve project implementation capacity and to monitor GoM commitment. Additionally, the proposed project, together with the PER GROP II, recently approved, will contribute to improve public sector capacity and identify areas for further capacity building support. 6.3.3 The third risk could be due to high turnover in the civil service or that the Ministries will not free staff to attend courses. The ISAP courses represent a tangible incentive for its participants and, moreover, its design will ensure a low risk of staff turnover on the immediate years after course completion. Ultimately, the on going PSRP will improve the financial and human resources management, policy formulation, and decentralization, factors that may contribute to increase civil servants job satisfaction. Regarding the release of public servants, the project has a disbursement condition that precisely addresses this risk (chapter 8.2). 6.3.4 A fourth potential risk could originate from diminished donor support. As pointed out in chapter 5.8, Mozambique enjoys a remarkable support of the donor community that contributes significantly for the national budget. Mozambique is seen as a success story that the international community is keen to support. There is intense donor competition in the country and 23 organised working groups.

24

7 PROJECT BENEFITS AND IMPACT 7.1 The role of the public sector in poverty reduction is critical, especially in the efficient delivery of social services and in the creation of policy and institutional frameworks conducive to growth and employment generation. To ensure effective public administration, there is a need to promote the capacity, transparency and accountability of the public sector. However, it is generally acknowledged that the Mozambican public sector lacks the requisite human skills, and efficient organizational structures and procedures. The proposed project by addressing these issues will play an active role in strengthening both the PSRP and PRSP. 7.2 The two components would contribute to strengthening GoM capacities to formulate policies, monitor implementation and deliver public services. The establishment of One-Stop Shops will improve the delivery of public services, therefore leading to less corruption and more public accountability. The OSS will also induce the State decentralization which is one important feature of the PRSP. The improvement of GoM’s image will strengthen citizenships, trust and the feeling of belonging and community solidarity. On the other hand, the Higher Institute of Public Administration (ISAP) will upgrade the skills of public servants and contribute to improve strategic thinking, policy-making, managerial abilities and new personnel management practices, such as merit- based selection, promotion, evaluation and recruitment across the state apparatus. The ISAP courses will represent also an incentive for public servants who will have free access to superior skills and higher education degrees while working. The ISAP component will thus enhance the present civil service compensation conditions and therefore, together with the fidelity clause, reduce the probability of staff turnover, which has been one of the major problems facing the GoM and its implementation units. 7.3 Within the Institutions of the GoM, there is a disproportionate number of men at senior level. To achieve more gender equality, one of the project conditions is to ensure that at least 30% of the courses participants and of the OSS work force are women. Presently, the women in managerial positions in the civil service are less than 20%, therefore 30% (in line with SADC target for public sector) is assumed to be an attainable goal. Also the reduction of waiting times and improved accessibility of the OSS services will benefit largely women who usually take on these tasks and have less available time than men. The Bank will monitor this output through project monitoring reports. 7.4 In accordance with the Bank Group’s Environmental Classification of projects, the project has been classified as category III. The category III classification implies that the project is not expected to have an adverse impact on the environment, for which environmental assessment is normally necessary. 8. CONCLUSION AND RECOMMENDATIONS 8.1 Conclusion

The 2002-04 Bank Group Strategy for Mozambique aimed at supporting the GoM in implementing its Strategy for the Reduction of Absolute Poverty (PARPA). The success of the GoM in reducing poverty and achieving the Millennium Development Goals will squarely depend on enhancing the capacity of the public sector and promoting good governance. By contributing to the strengthening of the government’s capacity to deliver public service, the proposed project will facilitate the implementation of the Government’s poverty reduction program and will reinforce its efforts to promote good governance.

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8.2 Recommendation

It is recommended that an ADF grant not exceeding UA 2.4 million be made available to the Government of Mozambique to support capacity building efforts in implementing the One-Stop Shop and ISAP projects. The grant will be subject to the following conditions: A) Conditions Precedent to Entry Into Force:

The Grant Protocol Agreement shall enter into force on its signature. B) Conditions Precedent to First Disbursement:

The obligations of the Fund to make the first disbursement of the loan shall be conditional upon entry into force of this Grant Protocol Agreement and the Recipient shall have to the satisfaction of the Fund:

i) Provided evidence that UTRESP have designated a Project Supervisor whose

qualification and experience are acceptable to the ADF, to facilitate, coordinate and monitor the day-to-day project activities (paragraph 5.1.2);

ii) Submitted to the ADF for approval an initial budget plan for both of the OSS and ISAP

components (paragraph 5.5.1);

iii) Opened a Special Account in a bank acceptable to the ADF, where the revolving fund will be deposited (paragraph 5.5.1);

iv) Provided evidence to the ADF of having created a OSS National Executive Committee

and ISAP Board of Directors to provide overall guidance, follow up on the implementation of the project as well as to review and approve annual budget plans to be funded under the project; (paragraph 5.1.2); and

v) Provided evidence that GoM has created the legal and institutional frameworks to allow

the selected public servants to be transferred to the OSS and to attend the ISAP courses.

Annex 1 - Mozambique Administrative Map

Annex 2 – CPSAP Outlook Target Group & Education

Provided Education

12th grade, without professional experience

12th grade, with professional experience

Secondary education in PA with professional exp.

Specialized higher education, with prof. exp.

Higher Professional

Diploma in Public Admin. (CPSAP)

(Type 1 and 2) Governance and Public Policies

Wk 1-5

• 6 modules • Each module comprises: preparation, teaching contact, practical exercises• Each module takes 80 hours distributed by five weeks

Target Public (characteristics)

Information &Comm. Mng

Wk 26-30

Organisational Development

Wk 21-25

Economics & Fin. Mng.Wk 16-20

HR and LeadershipWk 11-15

Planning

Wk 6-10

Provided Education

12th grade, without professional experience

12th grade, with professional experience

Secondary education in PA with professional exp.

Specialized higher education, with prof. exp.

Higher Professional

Diploma in Public Admin. (CPSAP)

(Type 1 and 2) Governance and Public Policies

Wk 1-5

• 6 modules • Each module comprises: preparation, teaching contact, practical exercises• Each module takes 80 hours distributed by five weeks

Target Public (characteristics)

Information &Comm. Mng

Wk 26-30

Organisational Development

Wk 21-25

Economics & Fin. Mng.Wk 16-20

HR and LeadershipWk 11-15

Planning

Wk 6-10

------------------------------------------------------------------------------------------------------- Courses & Diplomas

Higher Professional Diploma in P.A. (type 2) - 480 hours

Complementary teaching component of the Professional BA in P.A. - 1340 hours

Complementary teaching component of the Professional Masterin P.A. - 300 hours

Certificate (CPSAP)

BA diploma (BPAP)

Master diploma (PGPAP)

+ +Attended

Courses

Diploma

Awarded

Higher Professional Diploma in P.A. (type 2) - 480 hours

Complementary teaching component of the Professional BA in P.A. - 1340 hours

Complementary teaching component of the Professional Masterin P.A. - 300 hours

Certificate (CPSAP)

BA diploma (BPAP)

Master diploma (PGPAP)

+ +Attended

Courses

Diploma

Awarded

Annex 3 - Costs Details – OSS Page 1/2

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# Months Salary Total # Months Salary Total # Months Salary Total(USD)

Local Coordination Team 165,000 309,000 309,000 783,000Project Coordinator 12 3,750 45,000 12 3,750 45,000 12 3,750 45,000 135,000Project Executive 1 (Procurement) 12 2,500 30,000 12 2,500 30,000 12 2,500 30,000 90,000Project Executive 2 (Finance) 12 2,500 30,000 12 2,500 30,000 12 2,500 30,000 90,000Assistant 12 1,000 12,000 12 1,000 12,000 12 1,000 12,000 36,000OSS 1 Executive and Assistant 6 4,000 24,000 12 4,000 48,000 0 4,000 0 72,000OSS 1 Executive and Assistant 6 4,000 24,000 12 4,000 48,000 0 4,000 0 72,000OSS 1 Executive and Assistant 4,000 0 12 4,000 48,000 6 4,000 24,000 72,000OSS 1 Executive and Assistant 4,000 0 12 4,000 48,000 6 4,000 24,000 72,000OSS 1 Executive and Assistant 4,000 0 4,000 0 18 4,000 72,000 72,000OSS 1 Executive and Assistant 4,000 0 4,000 0 18 4,000 72,000 72,000

Consultants a) 228,000 228,000 456,000International Consultancy 12 17,000 204,000 12 17,000 204,000 408,000National Consultancy b) 6 4,000 24,000 6 4,000 24,000 6 2,000 12,000 60,000

Total 1,239,000

a) Includes per diems, accommodation and travel costsb) Includes also audit services

Grand TotalProject Management Task ForceYear N Year N+1 Year N+2

Unit Cost Total # of

Shops Costs # of Shops Costs # of

Shops Costs

(USD)

Phase 1 and 2 118,000 2 153,550 3 194,775 4 236,000 584,326

Phase 1 76,775 2 153,550 2 153,550 2 153,550 460,651

Premises Refurbishment 400 25 10,000 20,000 20,000 20,000 60,000

Furniture 14,524 22,250 44,500 44,500 44,500 133,500Chairs and Tables - Employees 10 600 6,000 12,000 12,000 12,000 36,000Archives/Closets 10 300 3,000 6,000 6,000 6,000 18,000Chairs and Tables - Public 8 600 4,800 9,600 9,600 9,600 28,800Air Conditioners 2 2,500 5,000 10,000 10,000 10,000 30,000Other 3,450 6,900 6,900 6,900 20,700

IT Equipment 28,478 43,625 87,250 87,250 87,250 261,751Desk Top and accessories 9 3,000 27,000 54,000 54,000 54,000 162,000DeskJet printer 3 300 900 1,800 1,800 1,800 5,401Photocopier/Scanner/Fax 1 3,000 3,000 6,000 6,000 6,000 18,000Software 1 4,000 4,000 8,000 8,000 8,000 24,000Other 8,725 17,450 17,450 17,450 52,350

Uniforms 9 100 900 1,800 1,800 1,800 5,400

Phase 2 41,225 1 41,225 2 82,450 123,675

Premises Refurbishment 400 20 8,000 8,000 16,000 24,000

Furniture 6,750 6,750 13,500 20,250Chairs and Tables - Employees 6 600 3,600 3,600 7,200 10,800Archives/Closets 6 300 1,800 1,800 3,600 5,400Other 1,350 1,350 2,700 4,050

IT Equipment 25,875 25,875 51,750 77,625Desk Top and accessories 5 3,000 15,000 15,000 30,000 45,000DeskJet printer 1 300 300 300 600 900Photocopier/Scanner/Fax 1 3,000 3,000 3,000 6,000 9,000Software 1 3,000 3,000 3,000 6,000 9,000Other 4,575 4,575 9,150 13,725

Uniforms 6 100 600 600 1,200 1,800

ProcurementYear N Year N+1

TotalQuant Metrics

Year N+2Costs per Shop

Annex 3 - Costs Details – OSS Page 2/2

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# of Shops Costs # of

Shops Costs # of Shops Costs

(USD)

Study Trip Abroad 49,860 49,860 0 41,550From PMTF 3 5 250 1,500 20 8,310 8,310From National Secretariat 3 5 250 1,500 20 8,310 8,310 8,310From OSS Staff 12 5 250 1,500 20 33,240 33,240 33,240

Training Course in Maputo 13,800 27,600 41,400 55,200by National Secretariat 10 5 50 30 20 2,400 2 4,800 3 7,200 4 9,600by Consultants 10 25 50 30 20 11,400 22,800 34,200 45,600

Total 63,660 77,460 41,400 96,750

Training CostsYear N Year N+1 Year N+2#

people#

daysAccomod. +

Per Diem TransportDaily

Course Fees

Total

Divulgation Unit Cost # Total Year N Year N+1

(USD)

Divulgation - LeafletsDesign 200 200Production 0.3 17,000 5,100Outdoors 100 50 5,000

Total 10,300 10,300 7,725

(USD)

Travel and Perdiems (Provinces) 1,000 12,000 12,000 12,000 36,000Office Rent 1,500 18,000 18,000 18,000 54,000Water & Electricity 250 3,000 3,000 3,000 9,000Communication 500 6,000 6,000 6,000 18,000Building Maintenance 200 2,400 2,400 2,400 7,200Translations 200 2,400 2,400 2,400 7,200Office Materials 50 600 600 600 1,800Consumables 100 1,200 1,200 1,200 3,600Other 799 9,588 9,588 9,588 28,764

Total 55,188 55,188 55,188 165,564

TotalYear N+2Running Costs Monthly Rate Year N Year N+1

Annex 4 - OSS Chronogram

Annex 5 - Costs Details – ISAP Page 1/2

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# Months Salary Total # Months Salary Total # Months Salary Total(USD)

ISAP Technical Team 86,400 86,400 86,400 259,200Executive Board 12 2,000 24,000 12 2,000 24,000 12 2,000 24,000 72,000 GoMPedagogical Supervisor 1 12 1,000 12,000 12 1,000 12,000 12 1,000 12,000 36,000 ADFPedagogical Supervisor 2 12 1,000 12,000 12 1,000 12,000 12 1,000 12,000 36,000 ADFPedagogical Supervisor 3 12 1,000 12,000 12 1,000 12,000 12 1,000 12,000 36,000 ADFPedagogical Supervisor 4 12 1,000 12,000 12 1,000 12,000 12 1,000 12,000 36,000 ADFExecutive Assistant (Reg. & Academic) 12 600 7,200 12 600 7,200 12 600 7,200 21,600 ADFExecutive Assistant (Adm. & Finance) 12 600 7,200 12 600 7,200 12 600 7,200 21,600 ADF

Consultants 8,000 8,000 8,000 24,000National Consultancy a) 4 2,000 8,000 4 2,000 8,000 4 2,000 8,000 24,000 ADF

Total 94,400 94,400 94,400 283,200

FinanceGrand TotalPersonel

Year N Year N+1 Year N+2

(USD)

Training Course in Maputo by Project Coord.and Pedagogical Sup. 20 20 30 20 40 20,960

Note: Totally financed by ADB

Transport Daily Course TotalTraining Lecturers Costs # people # days Accommodation

+ Per Diem

Diplomas Weeks Modules Teaching Add Teach Hrs Other Teaching Other Total Teaching Other Totala b c d = (b+c) * a

CPSAP 30 6 30 15 35 270 210 480 7,560 5,880 13,440PGPAP 1 18 3 30 15 55 135 165 300 270 330 600PGPAP 2 24 4 40 20 45 240 180 420 480 360 840BPAP 102 15 45 20 29 980 435 1,415 1,960 870 2,830

Diplomas Per Hour Per Module

Per Course Per Program Per

Student# of

CoursesStudents

per CourseTotal

Students(USD) e f = d*e g = f*h i = g/j h k j = h*k

CPSAP 35 1,575 9,450 264,600 378 28 25 700PGPAP 1 40 1,800 5,400 10,800 216 2 25 50PGPAP 2 40 2,400 9,600 19,200 384 2 25 50BPAP 35 2,287 34,300 68,600 1,372 2 25 50Total 363,200

Total Hours per ProgramTotal Hours per CourseHours per ModuleDuration Metrics

Teaching Costs Participants

Annex 5 - Costs Details – ISAP Page 2/2

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Metrics Unit Cost Total(USD)

Furniture 8,625 ADFChairs and Tables - Participants 25 200 5,000Chairs and Tables - Administrative 5 300 1,500Archives/Closets 2 200 400Other 1,725

IT Equipment 46,125 ADFDesk Top 9 2,000 18,000DeskJet printer 3 300 900Photocopier/Scanner/Fax 2 2,500 5,000Data Show & Projector 2 5,000 10,000Software 1 3,000 3,000Other 9,225

Premises Refurbishment 3,000 GoM

Resources Center (Books and Publications) 7,500 ADF

Total 65,250

Procurement Costs

Finance

Network & Travelling Unit Num. Unit Cost Year N Year N+1 Year N+2 Total

(USD)

Trainees NetworkSeminars Seminar 4 4,000 8,000 8,000 16,000Web site (creation) lumpsum 1,600 1,600 1,600Web site (updating) Month 23 150 1,650 1,800 3,450Newsletter Month 9 300 900 900 900 2,700Magazine (100 pages - bi-annual) Editions 4 4,000 8,000 8,000 16,000Total 20,150 18,700 900 39,750Note: Totally financed by ADB

Traveling & AccommodationRegional (2 flights/month) Airflight 50 250 6,000 6,500 12,500Intercontinental Airflight 12 2,000 12,000 12,000 24,000Domestic flights Airflight 15 450 3,600 3,150 6,750Accom. & perdiem (visiting professor) Day 100 200 8,000 12,000 20,000Accom. & perdiem (ISAP staff) Day 75 100 3,000 4,500 7,500Total 32,600 38,150 70,750Note: Totally financed by ADB

(USD)

Administrative Staff 600 7,200 7,200 7,200 21,600Office Rent 750 9,000 9,000 9,000 27,000Water & Electricity 200 2,400 2,400 2,400 7,200Communication 50 600 600 600 1,800Building Maintenance 50 600 600 600 1,800Office Materials 50 600 600 600 1,800Consumables 200 2,400 2,400 2,400 7,200Other 253 3,030 3,030 3,030 9,090

Total 25,830 25,830 25,830 77,490

TotalYear N+2Running Costs Monthly Rate Year N Year N+1

Annex 6 - ISAP Chronogram

Annex 7 - Project Institutional Arrangement Page 1/3

CIRESPChaired by the Prime Minister

OSS National Executive Committee(Chaired by Ministry

of State Administration)

ISAP Board of Directors(Chaired by Rep of MAE)

Ministerof Finance

Minister of Education

Minister of Planning

Minister of Justice

Minister of Public Works

Minister of Tourism

Minister of State Administration

Minister of Health

Minister of Industry and Trade

Minister of Labour

Political

Leadership

at PSRP

level

Political

Leadership

at PSRP’s

components

level

Other PSRP Committees

ADF Focal Point

Project Supervisor

MAEExecuting Agency

CIRESPChaired by the Prime Minister

OSS National Executive Committee(Chaired by Ministry

of State Administration)

ISAP Board of Directors(Chaired by Rep of MAE)

Ministerof Finance

Minister of Education

Minister of Planning

Minister of Justice

Minister of Public Works

Minister of Tourism

Minister of State Administration

Minister of Health

Minister of Industry and Trade

Minister of Labour

Political

Leadership

at PSRP

level

Political

Leadership

at PSRP’s

components

level

Other PSRP Committees

ADF Focal Point

Project Supervisor

MAEExecuting Agency

Annex 7 - OSS Institutional Arrangement Page 2/3

MF

OSS National Executive Committee(Chaired by Ministry of State Administration)

MJ

UTICT MPWH

Private Sector

MIT

MA

MTCMHA

UTRESP/MAE (PS)

Project Management Task Force

Project Coordinator

Shop 3 Team

Internat. Advisor

Shop 4 TeamAssistant 1

Project Exec 1

Year N+1

Financed by ADB

Legend:

Bold for full time positions

Project Exec 2

Project Coordinator

Shop 1 Team

Internat. Advisor

Shop 2 TeamAssistant 1

Project Exec 1

Year N

Project Exec 2

Project Coordinator

Shop 5 Team

Shop 6 TeamAssistant 1

Project Exec 1

Year N+2

Project Exec 2

MAEExecuting Agency

ADF Focal Point

MF

OSS National Executive Committee(Chaired by Ministry of State Administration)

MJ

UTICT MPWH

Private Sector

MIT

MA

MTCMHA

UTRESP/MAE (PS)

Project Management Task Force

Project Coordinator

Shop 3 Team

Internat. Advisor

Shop 4 TeamAssistant 1

Project Exec 1

Year N+1

Financed by ADB

Legend:

Bold for full time positions

Project Exec 2

Project Coordinator

Shop 1 Team

Internat. Advisor

Shop 2 TeamAssistant 1

Project Exec 1

Year N

Project Exec 2

Project Coordinator

Shop 5 Team

Shop 6 TeamAssistant 1

Project Exec 1

Year N+2

Project Exec 2

MAEExecuting Agency

ADF Focal Point

Annex 7 - ISAP Institutional Arrangement Page 3/3

SIFAP

ISAP Board of Directors(Chaired by Rep of MAE)

UTRESP/MAE (PS)MAE

General Director

Academic Director

Office of theGen. Dir.

Registration &Academic Office

Adm. Director

Administration & Finance

Executive Board

Pedagogic Supervisor 1

Pedagogic Supervisor 3

Pedagogic Supervisor 2

Pedagogic Supervisor 4

ISAP

Staff

Financed by ADB

Legend:

Bold for full time positions

ADF Focal Point

MAEExecuting Agency

SIFAP

ISAP Board of Directors(Chaired by Rep of MAE)

UTRESP/MAE (PS)MAE

General Director

Academic Director

Office of theGen. Dir.

Registration &Academic Office

Adm. Director

Administration & Finance

Executive Board

Pedagogic Supervisor 1

Pedagogic Supervisor 3

Pedagogic Supervisor 2

Pedagogic Supervisor 4

ISAP

Staff

Financed by ADB

Legend:

Bold for full time positions

ADF Focal Point

MAEExecuting Agency

Annex 8 Terms of Reference for Consultants, Technical Assistance Staff and Lecturers

Page 1/16

Technical Assistance – International Consultancy (OSS) 1. Consultancy Objective The overall objective of this consultancy is to enhance implementation capacity, especially within project management in connection to the OSS establishment project, while simultaneously securing a transfer of OSS knowledge based on concrete international experiences. Firstly, the objective shall be achieved by providing continuous project management support to ensure an effective and efficient project execution. Secondly, the objective shall be achieved by employing short-term high quality and OSS experienced international technical assistance within specific strategic implementation areas as specified by the Project Committee. 2. Scope of work The consultancy company shall provide a longer-term International Project Advisor to assist the PMTF with project execution. Furthermore, the consultancy company shall provide a pool of international short-term consultants. These short term consultants shall assist in areas of strategic importance for the progress of the project. Each short term consultant input shall be provided based on approved specific ToR drafted by the International Project Advisor. The areas which may require an input by the pool of short-term consultants subcontracted by the consultancy company are within: • Organizational development and change management • Process re-engineering • Information and communication technology (ICT) • Engineering • Architecture • Visual communication • Public Relations • Quality control 3. Expected outputs A OSS Project Initiation Document (PID) is developed. The PID shall cover all activities needed to establish the OSS. The PID shall as a minimum have a scope definition (including phase divided service selection/indication), outputs, activities, project monitoring system, budget and feasible work plan. The PID shall be presented to the representatives in the PMTF for comments and adjusted before a final PID is delivered.

Annex 8 Page 2/16

Specific project plans for each participating Public Sector Organisations (PSO). The PSO plans shall be incorporated into the PID. The PSO plans shall, as a minimum, include objectives, outputs, work plan, budget, PSO project management structure, expected PSO staff input, and expected national consultant inputs with ToR. Preparation plan for the Physical Location. The Physical location plan shall be incorporated into the PID. The plan shall as a minimum include objectives, outputs, work plan, budget, expected input from the project technical national advisor group, and expected national consultant inputs with ToR. The needed operational manuals and standards are developed and approved. These documents shall provide guidance ensuring an effective and efficient establishment and operation of the OSS. Minimum 10 services processes are redesigned enabling a smooth physical relocation of the service delivery function to the OSS. Each OSS should have a procedures manual covering all activities of the OSS. Out of these 10 services, 5 should necessarily relate to (i) identification services (national identity card, passport, emigration services) (ii) tax and social security issues, (iii) notary services (iv) registration certificates (birth, marriage, property) and (v) business licensing. Provide continuous support to the operational management of the OSS after the first phase of physical relocation of services and assist in expansion of the services in a second and possibly third phase. Assist in the training activities, particularly in elaboration of training materials and deliver of courses for the future OSS employees. A file transport, tracking and tracing system have been developed and implemented enabling the OSS to operate effectively and efficiently with high quality. 4. Reporting and time schedule Draft implementation plan and budget for the each of the involved PSOs based on an agreement with the relevant PSO for review and comments by the Committee within four weeks from commencement of the consultancy. Final implementation plan for each of the involved PSOs acceptable to the Committee within one week after receiving comments. Draft Physical Location plan for comments by the representatives in the PMTF within four weeks from commencement of the consultancy for review and comments from the Project Committee.

Annex 8 Page 3/16

Final Physical Location plan acceptable to the Project Committee within one week after receiving comments. Draft OSS PID for comments by the Committee within five weeks from commencement of the consultancy, and Final OSS PID acceptable to the Committee within one week after receiving comments. Monthly progress report to the Committee, including presentation of activities for the coming month, key areas of concerns and proposal for actions to be taken by the PMTF to promote progress, to be discussed and agreed with the Committee. Draft OSS Opening Report presented to the Committee for review and comments two weeks after the opening of the OSS. Final OSS Opening Report delivered to Committee one week after receiving comments. Quarterly report on operation and expansion of the OSS, including presentation of activities for the coming month, key areas of concerns and proposal for actions to be taken by the PMTF to promote progress, to be discussed and agreed with the Committee. Draft project completion report stating achievements against objectives, impact on the service delivery, future challenges etc. to be delivered five weeks before end of the consultancy period to the Committee. Final project completion report one week after receiving comments. 5. Coordination The consultants will be guided by the PMTF on behalf of the Committee. The International Project Advisor shall work closely together with the Project Manager once this position is filled. All consultants shall work closely together with the relevant national technical counterparts as well as the staff of the PSOs. In addition to the ad-hoc day-to-day contact and communication between the consultants and the PMTF a Monthly Review and Planning Meeting will be held with the Committee. The Committee will normally require two weeks to review and comment on reports from the consultants, however more time may be needed depending on the nature of the report and the issues raised.

Annex 8 Page 4/16

6. Contracting The successful Consultancy Company will enter into contract with MAE. The chargeable rate of the consultants’ technical assistance shall follow an agreed transparent and well-defined consultant matrix. The matrix shall include both the International Project Advisor and the pool of sub contracted short term consultants: • Organizational development and change management specialist • Process re-engineering specialist • Information and Communication Technology specialist • Engineering specialist • Architecture specialist • Visual communication specialist • Public Relations specialist • Quality control specialist A total of 24 working months are expected to be delivered under this contract. The input from the short-term consultants are expected to be most intensive during the first half of the contract period; however this will naturally depend on the progress of the project and thus the demand for international expertise to secure continuous high quality project delivery. The effectiveness, efficiency and quality of the delivered services under this consultancy contract will be reviewed every six months by a third party, selected and contracted by the representatives in the PMTF. 7. Consultants qualifications The successful consultants shall demonstrate their specific international experience with establishment and operation of an OSS. Their ability to provide international Portuguese speaking consultants that can be assigned to work with short notice in order to achieve the stated objectives and deliver the expected outputs. Particularly important is the urgent provision of an International Project Advisor. The International Project Advisor must demonstrate a minimum of 10 years experience with establishing and operating an OSS and considerable experience within: • Project documents formulation • Project Management, including monitoring and reporting • Improvement of public service delivery • Work-process redesign • Capacity development of PSO

Annex 8 Page 5/16

For the expected pool of short-term consultants the successful consultants must provide a list of CVs allocated to this contract demonstrating considerable concrete international experience from establishment and operation of OSS within the following areas: • Organizational development and change management • Process re-engineering • Information and Communication Technology • Engineering • Architecture • Visual communication • Public Relations • Quality control

Annex 8 Page 6/16

Project Coordinator (OSS) 1. Consultancy Objective The overall objective of the Consultancy is to provide the appropriate management capacity for the OSS preparatory and implementation phases. Firstly, the objective shall be achieved by providing continuous project management to ensure an effective and efficient OSS preparation. Secondly, the objective shall be achieved by providing operational management of the OSS after the opening of the shop to the public, while at the same time securing the transfer of services planned for the OSS expansion phases. 2. Scope of work During the preparatory phase the Project Coordinator shall: • Function as secretary for the Committee with regards to the preparation of agendas,

presentations, papers, progress reports, minutes of meeting, and securing implementation of the decisions made.

• Development and update all necessary project plans and budgets. • Coordinate and assist all relevant Public Sector Organizations (PSO) in order to secure their

ownership of the process, and ensuring an effective and efficient transfer of services to the OSS.

• Coordinate the work involved in preparing the physical facility for the OSS as well as the establishment of the necessary OSS systems (IT, quality, financial, promotional etc.).

• Be responsible for managing and reporting on funds allocated to the OSS project in close coordination with the MAE and UTRESP financial staff.

• Co-operate and secure effective use of external consultancy input provided to the OSS Project. • Secure an appropriate trained staff and level of staff within the OSS. • Prepare yearly operational budgets for each participating PSOs and for the common operation

costs of the OSS. • Responsible for a successful visible launch of the OSS when the first services are transferred. After the opening of the OSS the Project Coordinator shall continue the activities mentioned above in order to expand the services transferred. Furthermore the Project Coordinator shall: • Be responsible for adequate reporting as agreed • Secure uniformed interface with the clients (signs, dress, counters, forms etc.) • Manage the further development of common approaches and tools in the OSS • Facilitate exchange of information and experiences between the individual counters in the OSS • Promote a common work culture and values in the OSS

Annex 8 Page 7/16

3. Expected Outputs A minimum of 10 services have been transferred and are delivered through the OSS. Out of these 10 services, 5 should necessarily relate to (i) identification services (national identity card, passport, emigration services) (ii) tax and social security issues, (iii) notarial services (iv) registration certificates (birth, marriage, property), and (v) business licensing. The physical location has been renovated, designed and equipped. According to a OSS common staffing plan the needed staff has been designated and/or recruited to the OSS. According to a OSS staffing plan all needed staff is sufficiently trained in order to perform their functions. An effective file transport, tracking and tracing system has been developed and is operational. Financial procedures have been developed and are operational. A service delivery quality monitoring, control and reporting system has been developed and is operational. A OSS service policy and service delivery quality statements are produced and published. A OSS three-year operational plan and budget have been approved. Guarantees for minimum yearly budget contributions to be provided by the participating PSOs and MAE have been agreed and signed. 4. Reporting and Time Schedule Monthly Project Progress Reports are developed. The Progress reports shall both look backward and forward and shall as a minimum include the following: Review of the work plan (activity and output overview), Management (financial matters, budget revision, and consultant overview), and Key Areas of Concern. The report shall be presented to the Committee within five working days of every new month. A draft phased OSS staffing and training plan shall be developed within six weeks of commencement of this contract allowing for an effective and efficient operation from the outset. The plan shall be presented for approval to the Committee. A final OSS staffing and training plan shall be presented two weeks after receiving comments from the Committee. For each participating PSO and MAE a proposal for a minimum operational budget commitment shall be developed in consultation with the relevant PSOs within six months of commencement of this contract. The proposal shall be presented for comments to the Committee.

Annex 8 Page 8/16

An Operational Monthly Management Section is added to the Monthly Project Progress Report. This addition shall as a minimum include the following: Services activities (Volume and quality), Financial performance (OSS revenue generation, costs, and investments), OSS common issues (File transport, tracking, and tracing system), Coordination (among counters and with back offices at the PSOs), and Staffing issues (OSS staff and counter staff). A draft OSS three year operational plan and budget shall be developed in consultation with the participating PSOs. The plan shall be presented to the Committee within 10 months of commencement of this contract. A Final OSS three year operation plan and budget shall be presented two weeks after receiving comments from the Committee. A draft OSS project completion report stating achievements against objectives, impact on the service delivery, future challenges, and lessons learned etc. to be delivered five weeks before end of the contract to the Committee. A final OSS project completion report shall be presented one week after receiving comments from the Committee. 5. Coordination The OSS Coordinator will be guided by the Committee. The Project Coordinator shall coordinate closely with the National OSS Secretariat Officer and be the direct counterpart to the International Project Advisor. The Project Coordinator shall work closely with the relevant national technical counterparts as well as the staff of the PSOs. In addition to the ad-hoc day-to-day contact and communication Monthly Review and Planning Meetings shall be held within the Committee. 6. Contracting The successful candidate will enter into a contract with MAE. The first contract period will be for twelve months, yearly renewable up to three years. If MAE and the Project Coordinator can agree on a new permanent contract by the end of this consultancy contract the OSS Coordinator may continue directly in this position. 7. Project Manager Qualifications The successful candidate must demonstrate a minimum of 10 years experience with the management of public service delivery as well as considerable experience within: • Project Management, including monitoring and reporting • Improvement of Public Service Delivery • Work-process Redesign • Information and Communication Systems • Human Resource Management • Financial Management

Annex 8

Page 9/16

Project Executive (OSS) 1. Consultancy Objective The overall objective is to provide the appropriate management capacity for the OSS preparatory and implementation phases. Firstly, the objective shall be achieved by providing continuous project management to ensure an effective and efficient OSS preparation. Secondly, the objective shall be achieved by providing operational management of the OSS after the opening of the shop to the public, while at the same time securing the transfer of services planned for the OSS expansion phases. 2. Scope of work During the preparatory phase the OSS Executive shall:

• Development and update all necessary project plans and budgets. • Coordinate and assist all relevant Public Sector Organizations (PSO) in order to secure their ownership of the process, and ensuring an effective and efficient transfer of services to the OSS. • Coordinate the work involved in preparing the physical facility for the OSS as well as the establishment of the necessary OSS systems (IT, quality, financial, promotional etc.). • Co-operate and secure effective use of external consultancy input provided to the OSS Project. • Secure an appropriate trained staff and level of staff within the OSS. • Prepare yearly operational budgets for each participating PSOs and for the common operation costs of the OSS. • Responsible for a successful visible launch of the OSS when the first services are transferred. After the opening of the OSS the OSS Executive shall continue the activities mentioned above in order to expand the services transferred. Furthermore the OSS Executive shall: • Co-ordinate all operational activities of the OSS • Proper management of financial resources allocated to the OSS • Be responsible for adequate reporting as agreed • Manage the OSS staff • Secure uniformed interface with the clients (signs, dress, counters, forms etc.) • Manage the further development of common approaches and tools in the OSS • Facilitate exchange of information and experiences between the individual counters in the OSS • Promote a common work culture and values in the OSS 3. Expected Outputs

Annex 8 Page 10/16

A minimum of 10 services have been transferred and are delivered through the OSS. Out of these 10 services, 5 should necessarily relate to (i) identification services (national identity card, passport, emigration services) (ii) tax and social security issues, (iii) notary services (iv) registration certificates (birth, marriage, property) and (v) business licensing.

The physical location has been renovated, designed and equipped.

According to a OSS common staffing plan the needed staff has been designated and/or recruited to the OSS. According to a OSS staffing plan all needed staff is sufficiently trained in order to perform their functions.

An effective file transport, tracking and tracing system has been developed and is operational.

Financial procedures have been developed and are operational. A service delivery quality monitoring, control and reporting system has been developed and is operational.

A OSS service policy and service delivery quality statements are produced and published. A OSS three year operational plan and budget have been approved. Guarantees for minimum

yearly budget contributions to be provided by the participating PSOs and MAE have been agreed and signed. 4. Reporting and Time Schedule

Monthly Project Progress Reports are developed. The Progress reports shall both look backward and forward and shall as a minimum include the following: Review of the work plan (activity and output overview), Management (financial matters, budget revision, and consultant overview), and Key Areas of Concern. The report shall be presented to the Committee within five working days of every new month.

A draft phased OSS staffing and training plan shall be developed within six weeks of commencement of this contract allowing for an effective and efficient operation from the outset. The plan shall be presented for approval to the Committee. A final OSS staffing and training plan shall be presented two weeks after receiving comments from the Committee.

For each participating PSO and MAE (Common cost) a proposal for a minimum operational budget commitment shall be developed in consultation with the relevant PSOs within six months of commencement of this contract. The proposal shall be presented for comments to the Committee.

Annex 8 Page 11/16

An Operational Monthly Management Section is added to the Monthly Project Progress Report. This addition shall as a minimum include the following: Services activities (Volume and quality), Financial performance (OSS revenue generation, costs, and investments), OSS common issues (File transport, tracking, and tracing system), Coordination (among counters and with back offices at the PSOs), and Staffing issues (OSS staff and counter staff).

A draft OSS three-year operational plan and budget shall be developed in consultation with the participating PSOs. The plan shall be presented to the Committee within 10 months of commencement of this contract. A Final OSS three year operation plan and budget shall be presented two weeks after receiving comments from the Committee.

A draft OSS project completion report stating achievements against objectives, impact on the service delivery, future challenges, and lessons learned etc. to be delivered five weeks before end of the contract to the Committee. A final OSS project completion report shall be presented one week after receiving comments from the Committee. 5. Coordination The OSS Executive will be guided by the Project Coordinator. 6. Contracting The successful candidate will enter into a contract with MAE. The first contract period will be for eighteen months. If MAE and the OSS Executive can agree on a new permanent contract by the end of this contract, the OSS Executive may continue directly in this position. 7. OSS Manager Qualifications The successful candidate must demonstrate a minimum of 7 years experience with the management of public service delivery as well as considerable experience within: • Project Management, including monitoring and reporting • Improvement of Public Service Delivery • Work-process Redesign • Information and Communication Systems • Human Resource Management • Financial Management

Annex 8 Page 12/16

Project Executive (OSS) – Accountant Officer 1. Duties & Responsibilities The duties and responsibilities of the Accountant Officer will be the ones listed below: • Updating computerized accounting information on FINPRO (Accounting Package); • Liasing with ADF funds; • Helping to prepare monthly bank reconciliations for ADF bank accounts; • Ensuring that all fixed assets are recorded according financial procedures manual; • Prepare inventory of all fixed assets on a yearly basis. • Helping in the preparation of monthly, quarterly and annual replenishment requests, financial statements, and other reports as necessary. • Helping to prepare consolidated replenishment requests to GOM monthly (prestação de contas) and the ADF funds. • Prepare payment requisition to GOM for import taxes; • Helping to prepare the consolidated Quarterly and Annual Project Financial Statements, including the Sources and Uses of Funds and Uses of Funds by Project Component statements from the Quarterly and Annual Financial Monitoring Reports (FMR) package; • Helping to prepare consolidated Budgets/Cash Flow Projections; • Liasing with external auditors on annual financial audits; • Under the supervision of the Administrator and Project Coordinator, contribute in the implementing capacity-building activities for financial staff under ADF funds. • Under the supervision of the Project Coordinator, writing, as necessary, reports on the financial management situation and progress of the project.

2. Required Qualifications As a minimum requirement the person should have as professional qualifications: • A degree in accountancy from a Commercial Institute or a university degree in economics or a

related field; • Three (3) years minimum experience in the financial management of national-level projects or

equivalent; • Knowledge of the ADB and GOM procedures would be an advantage. • Be proficient in relevant computer applications. • Have good communication skills. • Have a good reputation. • Be fluent in English and Portuguese.

Annex 8 Page 13/16

3. Coordination The activities to be performed by the accountant officer will be closely supervised by the Project Coordinator, to whom he shall report. The Accountant Officer will be based in Maputo at the Project Unit office. When necessary, the accountant officer will be requested to travel to the Provinces were the Project has got activities and for the duration that will be established for each case . During such visits, the accountant will be entitled to the benefits established for all Project Unit staff members. 4. Duration of Contract. It is anticipated that the contract will have a duration of twelve months, including probation period (not more that 3 months) and will be renewable for equal period, provided that none of the parties inform the other in writing of its intention of terminating the contract at least 30 day before the end of the three years contract.

Project Executive (OSS) – Procurement Officer 1. Duties & Responsibilities Under the supervision of the Project Coordinator, the Procurement Officer will be responsible to program, execute and control all aspects related to importation of goods, hiring of consultancy services and training. His Main tasks will be:

• Preparing Terms of Reference (TORs) for Individual Consultants and Firms. • Preparing the Procurement Plan of the ADF funds, including cost estimate and budget, for

goods, consultancy and training. • Preparing the selection process/bid documents for consultancy/training and goods, and the

evaluation process. • Preparing letters of credits. • Preparing importation process of the goods and dealing with custom Entities/agencies. • Enhancing, as appropriate, systems of internal control of goods, consultancy contracts and

training. • Preparing annual inventory of the fixed assets, financed by the Project fund, and updating in a

regular basis. • Participating in the Quarterly/Annual Cash Flow Forecasts for the Project. • Preparing Procurement reports.

Annex 8 Page 14/16

• Ensuring compliance with operating procedures of Government and ADF funds in the

Procurement area. • Liaising with the internal/external auditors and following up any audit queries/management

letters. • Write a Report at the end of the contract period outlining achievements and challenges

pertaining to the procurement function. 2. Required Qualifications As a minimum requirement the person should have as professional qualifications: • A degree in accountancy from a Commercial Institute or a university degree in economics or a

related field; • Three (3) years minimum experience in the procurement management of national-level projects

or equivalent; • Knowledge of the procurement ADF and GOM procedures would be an advantage. • Be proficient in relevant computer applications. • Have good communication skills. • Have a good reputation. • Be fluent in English and Portuguese. 3. Coordination The activities to be performed by the procurement officer will be closely supervised by the Project Coordinator, to whom he shall report. The Procurement Officer will be based in Maputo at the Project Unit office. When necessary, the procurement officer will be requested to travel to the Provinces were the Project has got activities and for the duration that will be established for each case. During such visits, the procurement officer will be entitled to the benefits established for all Project Unit staff members. 4. Duration of Contract It is anticipated that the contract will have a duration of twelve months, including probation period (not more that 3 months) and will be renewable for equal period, provided that none of the parties inform the other in writing of its intention of terminating the contract at least 30 day before the end of the three years contract.

Annex 8 Page 15/16

Project Assistant (OSS)

1. Main Responsibilities To oversee all the administrative needs of the PMTF, in particular: • Maintain an updated directory of all stakeholder directly involved in the OSS project • Assist the PMTF in all necessary travel and appointment arrangements • Maintain files, registers and databases related to the OSS project • Maintain a conducive office environment and responsible for equipment, including IT, office supplies and other equipments • Support the Project Coordinator in the management of short-term contracts with individuals as well as institutions and private companies • Support the PMTF in the technical production of progress reports • Maintain financial records and work closely with UTRESP financial team on all accounting matters • Prepare Monthly Financial Reports and Fund Request to be send to the OSS Committee 2. Skills and competencies The Project Assistant will have the following skills and competencies: • Good computer skills of the main office software, in particular word, excel and power-point, access being an advantage • Ability to interact with senior consultants, in a multicultural environment • Ability to work independently under minimal supervision • Ability to plan and implement multiple tasks, sometimes under time-pressure • Ability to display dependability while maintain a sound degree of judgment and decision-making when necessary • Familiarity with basic financial management principles and processes including the correct preparation of financial records, reports and overviews. 4. Requirements The following requirements can be obtained through a combination of formal, self-study and work experience • At least a diploma level in a relevant field, • At least five years of working experience with a combination of duties in the areas of general administration and accounting. Experience in areas such as public service delivery, donor funded projects and external relations would be an advantage • Fluency in Portuguese both written and spoken. Fluency in English both in written and spoken would be an advantage. • Proficiency in the use of office packages, internet and email.

Annex 8 Page 16/16

Lecturers Team of ISAP

Type

Requirements Scope of Work

Researchers Higher Education in Public Administration, Social Science or Curriculum design; Demonstrate knowledge and understanding of specific project research issues as well as the notion of the current situation of Mozambique and the World regarding to wide ranging research approaches within the related teaching areas; Experience in the Research field (preferably in needs assessment and programme evaluation); Demonstrate the ability to work in a team; Computer skills; Fluent in Portuguese and English.

Planning and implementation of Research projects on: - Needs Assessment for Public Sector Training; - Quality of the courses provided at ISAP; - ISAP Course Impact on the performance of Public Sector.

Lecturers/ Visiting Professors

Higher Education in the relevant and specific areas of the courses to be taught at ISAP; Demonstrate knowledge of concepts, theories and different approaches used in the teaching field and use and apply a range of analytical tools and techniques in the context of Mozambique and in the World in general, within the related teaching areas; Experience in lecturing at Higher Education Institutions (preferably in Education Management); Demonstrate the ability to work in a team; Computer skills; Fluent in Portuguese and English.

Preparation and lecturing of the different training (course) modules at ISAP Monitoring the work of teaching assistants Monitoring of Student’s work. Planning and implementation of Executive Courses.

Teaching Assistants

Higher Education in the relevant and specific areas of the courses to be taught at ISAP; Demonstrate knowledge of concepts, theories and different approaches used in the teaching field and use and apply a range of analytical tools and techniques in the context of Mozambique and in the World in general, within the related teaching areas; Relevant Professional Experience in specific and related teaching areas; Demonstrate the ability to work in a team; Computer skills; Fluent in Portuguese and English.

Preparation and lecturing of the different training (course) modules at ISAP; Monitoring of Student’s work; Planning and implementation of specific sessions depending on training needs (Modules or Executive Courses).

Annex 9 - Courses Workload and Duration Page 1/5

Higher Professional Diploma in Public Administration (CPSAP)

(Type 1 and Type 2)

Modules

M1

Governance and Public Policies

M2 Planning

M3 Human Resources and Leadership

M4 Economics and Financial Management

M5 Organizational Development

M6 Information and Communication Management

Week

S1 S2 S3 S4 S5 S6 S7 S8

S9 S10 S11 S12 S13 S14 S15 S16 S17 S18 S19 S20 S21 S22 S23

S24 S25 S26 S27 S28 S29 S30

Periods Duration (hours)

Preparation 20

Teaching contact 30 Practical application 30

Break Preparation 20

Teaching contact 30 Practical application 30

Break Preparation 20

Teaching contact 30 Practical application 30

Break Preparation 20 Teaching contact 30 Practical application 30

Break Preparation 20 Teaching contact 30 Practical application 30

Break Preparation 20

Teaching contact 30 Practical application 30

Break

TOTAL (CPSAP) 480

Annex 9 - Courses Workload and Duration Page 2/5

Professional Post-Graduate Course in Public Administration (PGPAP)

(Option 1)

Modules

CPSAP

M0 Introductory Module

M1 Organization and Leadership

M2 Strategic Management

M3 Human Resources Management

Week

S1

S2 S3 S4 S5 S6

S7 S8 S9

S10 S11

S12

S13 S14 S15 S16 S17 S18

Periods Duration

(hours) 480 Teaching contact 20 Break Preparation 20 Teaching contact 30 Practical application 30 Break Preparation 20 Teaching contact 30 Practical application 30 Break Preparation 20

Teaching contact 40

Practical application 60

Sub-total (teaching component of PGPAP) 300

TOTAL 780

Annex 9 - Courses Workload and Duration Page 3/5

Professional Post-Graduate Course in Public Administration (PGPAP)

(Option 2)

Modules

CPSAP

M0 Introductory Module

M1 Organization and Leadership

M2 Strategic Management

M3 Human Resources Management

M4 Public Policies

Week

S1

S2 S3 S4 S5 S6

S7 S8 S9

S10 S11

S12

S13 S14 S15 S16 S17 S18 S19 S20 S21 S22 S23 S24

Periods Duration (hours)

480 Teaching contact 20 Break Preparation 20 Teaching contact 30 Practical application 30 Break Preparation 20 Teaching contact 30 Practical application 30 Break Preparation 20

Teaching contact 40

Practical application 60 Preparation 20

Teaching contact 40

Practical application 60

Sub-total (teaching component of PGPAP) 420

TOTAL 900

Annex 9 - Courses Workload and Duration Page 4/5

Professional BA in Public Administration (BPAP)

Week Modules Periods Duration (hours)

S1 to S30 CPSAP (type 2) 480

S1 to S7

Preparation Teaching/contact Practical application Break

S8 to S16 M1 Governance

Preparation Teaching/contact Practical application Break

40 80 40

S17 to S22 M2 Public Law

Preparation Teaching/contact Practical application Break

20 40 40

S23 to S28 M3 Ethics, Citizenship and

Professional Deontology

Preparation

Teaching/contact

Practical application Break

20 40 40

S29 to S34 M4 Administrative Methods and

Processes

Preparation

Teaching/contact

Practical application Break

20 40 40

S35 to S40 M5 Management and Leadership

Techniques

Preparation

Teaching/contact

Practical application Break

20 40 40

S41 to S46 M6 Planning and Public Finance

Preparation

Teaching/contact

Practical application Break

20 40 40

S47 to S52 M7 State and Society

Preparation

Teaching/contact

Practical application Break

20 40 40

Annex 9 - Courses Workload and Duration Page 5/5

S53 to S58 MO1 Development Economics

Preparation

Teaching/contact

Practical application Break

20 40 40

S59 to S64 MO2 Project Management

Preparation

Teaching/contact

Practical application Break

20 40 40

S65 to S70 MO3 Organizational Design and

Behavior

Preparation

Teaching/contact

Practical application Break

20 40 40

S71 to S76 MO4 Management of Change

Preparation

Teaching/contact

Practical application Break

20 40 40

S77 to S82 MO5 Quantitative and Qualitative

Analysis

Preparation

Teaching/contact

Practical application Break

20 40 40

S83 to S88 MO6 Computer tools

Preparation

Teaching/contact

Practical application Break

20 40 40

S89 to S95 MO7 Sociology

Preparation

Teaching/contact

Practical application Break

20 40 40

S96 to S102 MO8 Public Marketing

Preparation

Teaching/contact

Practical application Break

20 40 40

TOTAL (Complementary teaching component of BPAP) – Number of hours that are necessary for this component

1340

TOTAL (BPAP) – Number of hours that are required for the BA degree 1820