Embed Size (px)
Citation preview
Language: English
Original: English
PROJECT: Support to Higher Education, Science and
Technology (HEST)
COUNTRY: Republic of Malawi
PROJECT APPRAISAL REPORT
December 2011
Appraisal Team
Team Leaders : Patience Ekoh, Senior Education Analyst, OSHD 2/ZMFO
Benedict V. Kunene, Principal Education Analyst, OSHD.2
Team Members : Emmanuel Chisesa, Procurement Assistant, MWFO
Agyei M. Owusu, Senior Financial Management Specialist, ORPF.2
Enock Yonazi, Principal TeleComs Engineer, OITC
Delight Ngwira, Disbursement Assistant, MWFO
Ilde Lambrechts, Consultant Architect, OSHD.2
Baba Abdulai, Procurement Officer, ORPF.1/OSHD.0
Sector Manager: Mr. Boukary Savadogo, Manager, OSHD.2
Sector Director: Mrs Agnes Soucat, Director, OSHD
Mr. Gilbert Mbesherubusa, Director, OITC
Regional Director: Mr Chiji Ojukwu, Director, ORSB
Peer Reviewers
Mr. M. Guedegbe, Chief Education Analyst, OSHD.2
Mr. S. Jack, Chief ICT Engineer, OITC
Mr. Themba Bhebhe, Country Programme Officer, ZMFO
Mr. Moses Ayiemba, Chief Regional Procurment Coordinator, ORPF.1/ZAFO
Mr. Jason Mochache, Principal Architect, OSHD.2/UGFO
Mr. Joseph Muvawala, Principal Education Economist, OSHD.2
Mr. B. Nkhoma, Infrastructure Specialist, MWFO
Mr. Nathan Jere, Procurement Specialist, ZMFO
Mr. Emmanuel Anusionwu, Consultant, ESTA
Mr. Stijn Broecke, Young Professional, EDRE
ii
TABLE OF CONTENTS Page
TABLE OF CONTENTS, CURRENCY EQUIVALENTS, WEIGHTS AND
MEASUREMENTS, ACRONYMS AND ABBREVIATIONS, LOAN AND GRANT
INFORMATION, PROJECT SUMMARY, RESULTS-BASED LOGICAL FRAMEWORK,
PROJECT TIMEFRAME…………………….…………………………………...………ii - x
1 – STRATEGIC THRUST & RATIONALE ........................................................................ 1
1.1 Project linkages with country strategy and objectives .............................................. 1
1.2 Rationale for Bank’s involvement ............................................................................. 2
1.3 Donor coordination.................................................................................................... 3
2 – PROJECT DESCRIPTION ............................................................................................... 3
2.1 Project components ................................................................................................... 3
2.2. Technical solution retained and other alternatives explored ...................................... 5
2.3. Project type ................................................................................................................ 6
2.4. Project cost and financing arrangements ................................................................... 7
2.5. Project’s target area and population ........................................................................... 9
2.6. Participatory process for project identification, design and implementation ............ 9
2.7. Bank Group experience, lessons reflected in project design ................................... 10
2.8. Key performance indicators ...................................................................................... 10
3 – PROJECT FEASIBILITY .............................................................................................. 11
3.1. Environmental and social impacts ........................................................................... 11
3.2 Economic impact ..................................................................................................... 12
4 – IMPLEMENTATION ..................................................................................................... 13
4.1. Implementation arrangements .................................................................................. 13
4.2 Procurement arrangements ...................................................................................... 14
4.3 Financial management and audit arrangements ...................................................... 15
4.4 Funds flow and disbursement arrangements ........................................................... 16
4.5 Implementation schedule ......................................................................................... 16
4.6. Monitoring ............................................................................................................... 16
4.7. Governance .............................................................................................................. 17
4.8. Sustainability ........................................................................................................... 18
4.9. Risk management .................................................................................................... 18
4.10. Knowledge management ......................................................................................... 19
5 – LEGAL INSTRUMENTS AND AUTHORITY ............................................................ 19
5.1. Legal Instrument...................................................................................................... 19
5.2. Conditions associated with Bank’s intervention ..................................................... 19
5.3. Compliance with Bank Policies .............................................................................. 20
6 – RECOMMENDATION .................................................................................................. 20
Appendix I: Malawi Comparative Socio-Economic Indicators ....................................... 21
Appendix II. Bank Group Operations in Malawi............................................................. 22
Appendix III: Main Related Projects Financed by the Bank and other Development
Partners in Malawi ........................................................................................................... 23
Appendix IV: Map of the Republic of Malawi showing Project Sites ......................... 25
Appendix V: Nigerian Trust Fund Approval for the Project ........................................... 26
Appendix VI: Procurement Arrangements for the Project .............................................. 27
iii
Currency Equivalents
As of December 2011
1 UA = MWK 259.182
1 USD = MWK 163.429
1 UA = USD 1.58590
Fiscal Year
1st July – 30
th June
Weights and Measurements
1 metric tonne = 2204 pounds (lbs)
1 kilogramme (kg) = 2.200 lbs
1 metre (m) = 3.28 feet (ft)
1 millimetre (mm) = 0.03937 inch (“)
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
Acronyms and Abbreviations
ADF : African Development Fund
CSEC : Civil Society Education Coalition
CSO : Civil Society Organizations
DPs : Development Partners
DFID : Department for International Development
EDCG : Education Donor Coordination Group
EIMS : Educational Informational Management System
EIMU : Education Infrastructure Management Unit
ESIP : Education Sector Implementation Plan
ESTA Statistics Department
GoM : Government of Malawi
GPRSG : Governance and Poverty Reduction Support Grant
HE : Higher Education
HEST : Higher Education Science and Technology
ICB : International Competitive Bidding
ICSP : Interim Country Strategy Paper
JFA : Joint Financing Agreement
JICA : Japan International Corporation Agency
JSR : Joint Sector Reviews
LMIMS : Labour Market Information Management System
MGDS : Malawi Growth and Development Strategy
MWFO : Malawi Field Office
MWK : Malawi Kwacha
MoEST : Ministry of Education Science and Technology
MTS : Medium Term Strategy
NCB : National Competitive Bidding
NCHE : National Council for Higher Education
NEMA ACT : National Environment Management Act
NESP : National Education Sector Plan
ODL : Open Distance Learning
OSHA ACT : Occupational Health and Safety Act
OSHD Human Development Department
STI : Science, Technology and Innovation
SWAp : Sector-wide Approach to Programming
TEVET : Technical, Entrepreneurial and Vocational Education and Training
TEVETA : Technical, Entrepreneurial and Vocational Education and Training Authority
TVET : Technical and Vocational Education and Training
WFP : World Food Programme
iv
Loan and Grant Information
Client’s information
BORROWER: Republic of Malawi
EXECUTING AGENCY: Ministry of Education, Science and Technology
Financing plan
Source Amount (UA) Instrument
ADF
9.05 Million
10.95 Million
Loan
Grant
NTF 6.50 Million Loan
GoM 2.95 Million Counterpart Funds
TOTAL COST 29.45 Million
ADF’s key financing information
Loan currency
USD
Commitment fee 0.50% (50 basis pts.)
Other fees 0.75% (service charge)
Tenor 50 years
Grace period 10 years
NTF’s key financing information
Loan currency
USD
Commitment fee 0.50% (50 basis pts.)
Other fees 0.75% (service charge)
Tenor 27 years
Grace period 7 years
Timeframe - Main Milestones (expected)
Concept Note approval
November 2011
Project approval January 2012
Signing February 2012
Effectiveness June 2012
Completion December 2017
Last Disbursement June 2018
v
PROJECT SUMMARY
Project Overview: The Support to Higher Education, Science and Technology (HEST)
Project aims to help improve the quality and relevance of skills development in Malawi
for job creation and employability of graduates. It involves the active participation of
institutions of learning and industries in skills training at the various target institutions. The
strategic outcomes of the project include: (a) increased access to and use of Information and
Communication Technology (ICT) through enhanced facilities and services; (b) increased
access to Technical, Entrepreneurial, Vocational Education and Training (TEVET) and
Higher Education (HE); (c) improved quality and relevance of HEST in target TEVET and
HE Institutions with links to the productive sector; (d) improved monitoring and evaluation
system in each of the beneficiary institutions linked to the Ministries of Education; Labour,
Industry and Trade; and in TEVETA. The project will also include impact evaluations to
measure the effectiveness of project interventions in increasing participation and improving
retention in HEST, improving the quality of HEST graduates, and strengthen links with the
productive sector (including the insertion of HEST graduates).
Beneficiary Participation: The direct beneficiaries of the improved access to HEST will
be graduates from secondary and post-primary school levels, especially female students,
prospective employers of graduates, the GoM, and society at large. The TEVET sub-
component will cover all the four Government Technical Colleges (Lilongwe, Nasawa,
Salima, and Soche). The Higher Education (HE) sub-component will cover Chancellor
College, the Polytechnic, and Mzuzu University. The project was designed by incorporating
the inputs and advice provided by all beneficiary institutions, the Ministry of Education
Science and Technology (MoEST), TEVETA, Civil Society Organizations (CSO) active in
the Education sector, the Education Cooperating Partners Group (ECPG) and other relevant
stakeholders visited during the Bank’s project formulation missions.
Project rationale: The Malawi Growth and Development Strategy1 considers Education
as one of its priority areas with focus on human capital development. This priority status
underpins the GoM’s vision to transform Malawi from a predominately importing and
consuming country to a net producer and exporter. The Bank’s ICSP (2011-2012) spells out
priorities under two pillars: Pillar I has outputs mostly in creating access to regional markets
through road transport networks and sea port across all transport routes; and Pillar II has
outputs related to business growth and innovation through creation of value-chain and skills
development in the HE and TEVET subsector. A Skills for Private Sector Development study
conducted by the Bank in 2009 confirmed that the country is facing a serious challenge of
lack of skilled labour. Skills shortages in specific areas were identified through this study.
The proposed project will help to address some of these needs.
Bank’s Added Value: With the proposed project, the Bank is addressing a pressing need
to help build human capital in Malawi to promote economic and social development and
reduce poverty. The National Education Sector Plan (NESP, 2008-2017) of the GoM
highlights the critical role of education in developing the human capital that could contribute
to the country’s socio-economic development and is committed to the development of the
sector. In order to leverage resources for the development of the sector especially TEVET
1 The Second Malawi Growth and Development Strategy (MGDS II 2012 – 2016) retains the same
priority areas as the (MGDS I 2006 – 2011).
vi
and HE, GoM has requested the Bank’s support through this project. This intervention will
support the promotion of human resource development that will enhance employability
especially for the youths and increase Malawi’s competitiveness in the global economy. It
will complement and strengthen the achievements of the Bank’s previous 5 operations in the
sector as well as the Competitiveness and Job Creation Support Project (OSHD), and the
Statistical Capacity Building Project (ESTA). The operations in primary and secondary
education increased both enrolment rates and pass rates at these levels of education; creating
a critical need to expand access to quality education for post- secondary graduates. The
proposed HEST project will therefore address this critical need.
Knowledge Management: The project’s M&E process will include a robust Labour
Market Information System. This system will constantly generate data through surveys by
the Ministry of Labour, the Institutions and MoEST through EMIS to feed into decision-
making processes on which priority skills required by industry and private sector, are
determined at a particular time. This system will thus fill a critical gap in the country. The
impact evaluation of the project will generate lessons of interest to GoM, the private sector,
development partners and other stakeholders. Key knowledge generation processes envisaged
under the project include a baseline survey, a labour market information system, project
reviews at stakeholder meetings, an impact evaluation study and the final project evaluation.
vii
VII. RESULTS-BASED LOGICAL FRAMEWORK Country and project name: Malawi – Support to Higher Education, Science and Technology (HEST) Project
Purpose of the project: To contribute to the development of human resources in order to increase economic and social development and reduce poverty.
Objective of the project: To contribute to increasing access and improving the quality and relevance of TEVET and HEST
RESULTS CHAIN PERFORMANCE INDICATORS
MEANS OF
VERIFICATION RISKS/MITIGATION MEASURES
Indicator (including CSI) Baseline Target
IMP
AC
T
Impact
Improved capacity of the
educational system to provide adequate quality human
resources for development
% of skilled and qualified human resources
trained by the educational system
TEVET: Less than 10% of
graduates of educational
system
HE: Less than 5% of
graduates of educational system
10% or more by 2018
6% by 2018
EIMS, LIMS and CSO
Report
Risk: Prevailing macro-economic environment
characterized by shortages of fuel, scarcity of
foreign exchange, and lack of essential drugs.
Mitigation: GoM instituted high level dialogue
with civil society and has resumed talks with the IMF on improvements of the macro-economic
environment. The Bank will work with other
Development Partners and GoM in supporting measures for promoting sound macroeconomic
and private sector development reforms.
Risk: Insufficient statistical capacity at NSO,
EMIS and LIMS;
Mitigation: Statistical capacity building is part of
GoM training programme.
OU
TC
OM
ES
Outcome 1: : Increased access
to ICT
Number of students, teachers and public
accessing up-to-date ICT services in beneficiary institution
Number of HE and TEVET interconnected
Number of HE and TEVET institutions with access to broadband and established
automated libraries including e-library
section
Number of HE and TEVET Institutions
operating ODL
Less than 10% (2011)
Connectivity link of average 256 Kbps (2011)
2 institutions with reliable wireless hot spots on
campus and limited
computers in library; limited access to subscribed e-
journals
To be established by the
baseline survey
40% to have access to ICT
Services
All HE and TEVET linked at speed more than 2Mbps
7 HE and TEVET institutions with reliable wireless hot
sports and computers in
libraries and adequate access to online information
7 HE and TEVET Institutions
offering courses through ODL
MoEST EMIS Report,
Implementation Report
Risk: High cost of bringing the fiber link to some
HE institutions premises;
Mitigation: GoM (MoEST) through the
Regulator oblige operators to extend fiber optic access points at participating
institutions
viii
OU
TC
OM
ES
Outcome 2: Increased access to
HEST
Student enrolment in TEVET and HE
Number of existing faculties in HE &
TEVET institutions rehabilitated, constructed
and equiped
% of students receiving merit based
scholarships
Number of students enrolled in bridging
courses
TEVET: 30 students per
100,000 population (2011)
HE: 51 students per 100,000
population (2011)
To be established by the
baseline survey
0% students receive merit
based scholarship (2011)
None in 2011
100 students per 100,000
population (2016)
150 students per 100,000
population (2016)
7 TEVET and HE institutions
provided with rehabilitated
/constructed facilities
10% of students of which 40%
are females.
2000 in 2017
MoEST EMIS Report,
Project Implementation
Report
Risk: Abuse of merit based scholarships.
Mitigation: Government to set up a robust merit based scholarship allocation mechanism
Outcome 3: Improved Quality and Relevance of HEST in
target TEVET and HE
Institutions with link to the productive sector.
% of enterprises from the productive sector participating in/patronizing training
% of graduates absorbed in productive sector
Number of courses with revised curricula
To be established by baseline survey
63% (TEVET) and 50%
(HE) in 2011
Number established by
baseline survey
Double the %.
To increase by at least 10%
(2016) of which 40% female
All relevant courses at TEVET
and HE levels
EIMS, LIMS, TEVETA and
Min. of Labour reports
TEVETA and Min. of Labour
Outcome 4: Improved
monitoring and evaluation of
the performance of HE and
skills development.
Development of LMIS, strengthening of EMIS and integration of the two
No LMIS, weak EIMS and the two are not integrated
Established LMIS, strengthened EIMS and the
two integrated.
MOEST EMIS Annual reports; Beneficiary
Institutions; annual reports;
and project’s progress reports
Risk: Limited skills for M&E and data collection and analysis to measure progress.
Mitigation: M&E of project as part of the sector
and national M&E capacity development
OU
TP
UT
S
TEVET and HE Staff trained at
Masters and PHD level
Education materials and equipment procured and
installed and learning areas expanded, constructed;
ICT Centres developed
LMIS established and EMIS
strengthened with required type of information
Impact and baseline studies conducted
Number of Staff trained in target masters and
PHD level
Number and type of identified equipment
procured, installed and operational; Nb of
learning faculties;
Number of Industrial Incubators and or
research initiatives established in target faculties; Number hardware and software for
LMIS and instruments for data collection
Number of impact and baseline studies
167 (TEVET) and 656 HE
lecturers (22% female) in
2011
5,233 lecturers (HE) in
2011
Number established by
baseline survey
None in 2011
Additional 64 and 21
lecturers respectively with at
least 40% females in 2015
Additional 21 lecturers (HE)
of which at least 40% females
in 2016.
Equipment Workshops;
Books; Education Material 7 ICT-Centres & 7 e-
Libraries; 7 Workshops; 3
Classroom Blocks; 7 Laboratories, 3 ODL Centres,
Centre, 5 e-Learning Centres
2 studies in 2017
Quarterly project progress
Reports
Annual project audit report
Supervision mission aide
memoires and reports
MOEST EMIS Reports University of Malawi annual
reports
Risk: Low quality of designs and poor
workmanship.
Mitigation: Installation of Coordinating Units in
the Institutions. ICB for award of contractors and consulting firms, forming consortia with local
contractors/offices.
KE
Y
AC
TIV
ITIE
S COMPONENTS INPUTS
Component 1: ICT Development- Increased Access to ICT; Provision of ICT equipment, ODL and materials UA7.09million (24%)
Component 2: Increasing Access to HEST-Expansion of learning areas; Education materials and equipment provision in HE and TEVET UA16.32 million (55%)
Component 3: Improving Quality and Relevance of HEST- Staff training; Education Management training; Establishment of a Labour Information Management System (LIMS); Establishment linkages through of PPP; Curriculum Review
UA3.39 million (12%)
ix
Component 4: Development of Monitoring and Evaluation System and Project Management-Robust Monitoring and evaluation system linked to productive sector;
Operational Cost; Project management strengthening.
UA2.64 million (9%)
x
Project Timeframe
REPORT AND RECOMMENDATION OF THE MANAGEMENT OF THE ADB GROUP TO THE
BOARD OF DIRECTORS ON A PROPOSED LOAN/GRANT TO THE REPUBLIC OF MALAWI
FOR THE SUPPORT TO HIGHER EDUCATION SCIENCE & TECHNOLOGY (HEST)
PROJECT
Management submits the following Report and Recommendation on a proposed ADF loan
for UA 9.05 million, an ADF grant for UA 10.95 million, and a NTF loan for UA6.50 million
to finance the Support to Higher Education, Science and Technology Project in the Republic
of Malawi.
1 – STRATEGIC THRUST & RATIONALE
1.1 Project linkages with country strategy and objectives
1.1.1 Under its Growth and Development Strategy2, Malawi considers education as
one of its priority areas with a focus on human capital development. This priority status
underpins the GoM’s vision to transform the country from a predominately importing and
consuming nation to a net producer and exporter of goods and services. Against this
background, the Bank’s Interim Country Strategy Paper (ICSP 2011-2012) spells out
priorities under two pillars: Pillar I has outputs mostly in creating access to regional markets
through road transport networks and sea port across all transport routes; and Pillar II has
outputs related to business growth and innovation through creation of value-chain and skills
development in HE and TEVET. It focuses on: (a) Improving Infrastructure (Pillar I); and (b)
Accelerating Private Sector Development (Pillar II) as key priorities for the GoM and the
Bank. The proposed ADF and NTF project is in conformity with the priorities of the Malawi
Interim Country Strategy Paper (ICSP) and with the MGDS. It is anchored on the Bank’s
MTS (2008-2012), which prioritizes private sector development and skills development, as
well as the Higher Education, Science and Technology (HEST) Strategy.
1.1.2 The Interim Country Strategy Paper cites lack of skilled labour in Malawi as one
of the main weaknesses of the economy. The country is ranked 139th
in the 2010/11 Global
Competitive Index. There is also evidence of high returns to higher education. Within regular
wage employment, secondary and university education are associated with 123% and 234%
wage premiums respectively relative to illiteracy. The country is ranked 139th
in the 2010/11
Global Competitive Index. A Skills for Private Sector Development study conducted by the
Bank in 2009 confirmed that the country is facing a serious challenge of lack of skilled
labour. Skills shortages exist in areas such as: mechanics, plumbing, refrigeration, painting,
decoration, electricity and welding, among other areas. The study surveyed 11 subsectors of
the economy and found out that the demand for “hard skills” (relating to engineering and
artisans) appeared in 8 of the 11 subsectors (73%). Public universities were also reported to
have high vacancy rates in engineering (mechanical, civil, mining, physics, architecture and
chemistry). The capacity of the teaching professionals in TEVET and HE Institutions at
present falls short of the required levels owing to lack of formal and in-service training.
1.1.3 The current production of skills by the training institutions is not abe to meet the
demand for industry. There are 6 universities with a total enrolment of 12,129 (of which 2
are public and 4 with 924 students are private) and 8 TEVET institutions with 4,477 students
2 The Second Malawi Growth and Development Strategy MGDS II (2012 – 2016) is planned for validation in
2012, and it retains the same priority areas as the MGDS I (2006 – 2011)
2
(of which 4 are public and 4 with 1,122 students are private). However, these institutions are
not able to produce enough skills to close the shortages that exist in areas such as: plant
operators, instrumentation mechanics, plumbers, refrigeration technicians, painters,
decorators, roofers, drivers, electricians and welders. It is imperative to address some of these
needs through expanding access to the course areas offered in three campuses of the 2 public
universities (5,947 students) and all the four public TEVET institutions (3,350 students).
1.1.4 The current TEVET policy needs to be aligned with the legal mandates of the
Ministry of Labour and MoEST on skills development. It further needs to be aligned with
the country’s export strategy that calls for skills development to support the export industry.
There is need to provide technical assistance to GoM through MoEST to review existing
policies and conduct stakeholders’ consultations to inform the development of a
comprehensive policy on skills development. Actions and discussions have already been
started through assistance from the International Labour Organization (ILO) and UNESCO to
the Ministries of Labour, and Education, Science and Technology respectively. The proposed
project will support these ministries to be partners in this development by putting in place a
Labour Market Information Management System (LMIMS) in Malawi. The last Labour force
Survey was conducted in 1983 and was never published. Providing technical support to the
Ministry of Labour and the National Statistical Office to build capacity for the development
and sustainable management of a comprehensive LMIMS is a visible gap that needs to be
filled.
1.2 Rationale for Bank’s involvement
1.2.1 With the proposed project, the Bank is addressing a pressing need to help build
the human capital needed by Malawi for its socio-economic development and poverty
reduction agenda. The National Education Sector Plan (NESP, 2008-2017) of GoM
highlights the critical role of education in developing the human capital that will contribute to
the country’s socio-economic development and its commitment to the development of the
sector. Skills development in Malawi is also supported by the country’s export strategy under
the Ministry of Trade and Industry that calls for production of technical skills to support the
export industry. In order to leverage resources for the development of the sector especially
TEVET and HE, GoM has requested the Bank’s support through this project. This planned
intervention will support the promotion of human resource development that will enhance
employability especially for the youths and increase Malawi’s competitiveness in the global
economy.
1.2.2 The proposed intervention in HEST and TEVET will complement and
strengthen the achievements of the Bank’s previous operations in the sector. Five
previous Bank’s interventions in primary and secondary education increased both enrolment
rates and pass rates at these levels, creating a critical need to expand access to quality
education for post-secondary graduates (see paragraph 2.7.1). Currently no development
partners are financing TEVET and HEST except UNESCO which is assisting the GoM with
the review of TEVET policies, strategies and definition of roles and responsibilities. JICA is
at preparation stage of an intervention for a few secondary schools. The intervention also
strengthens Bank’s activities in the private sector through linkages with the Competitiveness
and Job Creation Support Project (OSHD) and the Statistical Capacity Building Project
(ESTA).
1.2.3 In responding to the GOM’s request, the Bank is focusing its intervention on a
3
sub-sector of education that receives a small part of donor support in 2010. Out of a total
MK46.8 billion for the MoEST for the financial year 2010-11, only MK544 million was
allocated to the TVET sub-sector and 15% (MK7 billion for the 2 universities). Both
government and donor finding to the sector is not able to meet the demand. This
underfunding has led in part to a poor performance of the subsector due to overcrowding in
the learning areas, use of obsolete teaching and learning materials as well as low quality
teaching and learning as most of the lectures have not undergone both upgrading and in-
service training for a long time. The state of Information and Communication Technology
(ICT) is at the lowest minimum with only the universities having access to very poor
connectivity. The technical colleges face even more challenges. All this has led to the low
level of HE and TEVET graduates availability in the country at 51/100,000 (HE) and
10/100,000 as compared to the SADC region’s averages of 337/100,000 and 551/100,000
respectively. Education plays an important role in economic growth, and contributes to the
formation of a skilled productive workforce, producing more efficiently a higher standard of
goods and services, which in turn forms the basis for faster economic growth and rising living
standards. The Bank will thus be helping to bring greater value-addition by helping close the
skills shortage gap in high-growth sectors such as mining, manufacturing and tourism
through the proposed project.
1.3 Donor coordination
1.3.1 Development partners play an important role in financing education in Malawi.
Available figures for 2010-2011 show that the GOM allocated 15.76% (K46.8 billion) of its
K297.00 billion total budget to the sector. The recurrent allocation was 85% of this total, thus
leaving only 15% for capital development. The DPs contributed 52% (K2.323 billion) of the
total capital education budget in the same year. There are 8 DPs providing financing to the
sector: the AfDB, World Bank, DfID, German Cooperation, USAID, UNICEF, Japan
International Cooperation Agency (JICA) and World Food Programme (WFP). The Chinese
Government is financing the construction of the University of Science and Technology in the
Southern region, through a bilateral arrangement with the GoM. The World Bank and the
Bank are conducting some studies in policy options for investing in higher education. NGOs
also provide support to the sector.
1.3.2 Most of the DPs, except the Bank and JICA, concentrate their funding on basic
education. The country was approved for receiving an additional funding (USD90.00
million) from the Fast Track initiative (FTI) improvements in this sub-sector. There is an
effective Development Partners’ coordination mechanism with a chair and a co-chair. The
present chair is the German Embassy while the World Bank is co-chair. The chair and co-
chair are nominated on a rotational basis every year and this ensures close liaison and
cooperation with the MoE in all areas of education sector development. Monitoring and
evaluation is conducted on an annual basis through the Joint Sector Reviews (JSR). Overall,
the donor coordination mechanism is effective. However the capacity of the GoM to
implement ongoing and absorb new programmes needs to be reinforced. Details of
Development Partner activities in Malawi are found in Technical Annex A.
2 – PROJECT DESCRIPTION
2.1 Project components
2.1.1 The sector goal is to develop human resources in order to increase economic and
4
social development and reduce poverty. The objective of the project is to increase access
and improve the quality and relevance of HEST and TEVET.
2.1.2 The Project consists of 4 components and the key activities under each
component are outlined in Table 2.1. A detailed description of project activities is found in
Technical Annex B2.
Table 2.1: Project components
Component (UA M) Component Description / Activities
Component 1:
ICT for Skills
Development
and
Employability
7.09
Increased Access to ICT: The project will help transform the education sector through
increased access and utilization of ICT in the beneficiary institutions. This will be
achieved through providing: institutional and human capacity development;
connectivity; networked computing facilities and ODL equipment; and provision of
ICT related services in implementing agencies (MoEST, Ministry of Industry and
Trade, Ministry of Labour; TEVET and HE institutions). The main beneficiaries will
be students and lecturers (learning and training) in the beneficiary training institutions;
staff of the implementing institutions (training and usage); and communities
surrounding the training institutions through the use of ICT centers in each of the
institutions.
Interconnectivity of Beneficiary Institutions: The component will provide for
terrestrial fiber optic cable, wireless access points and improved Wide and Local Area
Networks at respective institutions. It will improve connectivity (with link speed more
than 2Mbps) and ensure access to internet within individual institutions and among all
of them. Computing (network connectivity) and ODL facilities will support provision
of services including open and distance learning programmes, e-library internet
services, web hosting and development, incubator programmes, video conferencing,
database development, consultancy and other institutional specific services.
Increased Access to online Information: The component will improve resource
information centres, including increasing the number of access points (library
terminals and remote access to library); the establishment of e-library sections as all
HE and TEVET institutions will improve and strengthen the learning environment of
students on and off campus of participating institutions. The installation of specialized
software applications in the computer labs of participating technical colleges
(depending on their thematic focus area) will ensure access to current and updated
learning techniques for students and provide a possibility of collaborating with other
institutions on knowledge management and sharing.
Component 2:
Increasing
Access to
HEST
16.32
Improvement of Learning Areas: The project will support the improvements of the
learning environment through reduction of students’ congestion in lecture rooms and
workshop in the seven target institutions (The Chancellor College, The Polytechnic,
Nasawa and Soche Technical College in the South; Mzuzu University in the North;
and Salima and Lilongwe Technical Colleges in Central Region). This will be
achieved through construction and rehabilitation of classrooms, workshops, e-
libraries, and ICT Centers. The project will specifically fund construction of an ICT-
center, renovate and extend one library block/e-library facility, construct 1.300 m2
workshop, classroom, laboratory and offices as required for each of the four (4) TCs.
The project will also fund provision of water and sanitation works for only Nasawa
technical college and general site works for each of the four TCs. At the three HE
institutions, the project will fund construction of 1 ICT-center, renovate and extend 1
library and e-library, construct 2.200 m2 ODL facility, workshop, classroom,
laboratory and office space, construct 1 business center at each HE institution. The
project will also fund general site works for each of the target institutions. It will
provide up-to-date equipment and books to increase access to HEST in the seven
institutions. At least 40% of the target enrolment will be females.
Merit-Based Scholarships: The component will also fund merit based scholarships for
5
Component (UA M) Component Description / Activities
2,000 first year students enrolled in S&T related courses in HE and TEVET
Institutions to encourage enrollment in Science and Technology related courses in HE
and TEVET of which at least 40% of the beneficiaries will be females. MoEST in
collaboration with Management of HE Institutions and School Management
Committees (SMCs) in respect to TC’s will be required to draw up a selection criteria
and the list of selected beneficiaries and submit to the Bank for review before award.
Component 3:
Improving
Quality and
Relevance of
HEST and
TEVET
3.39
Capacity-Building: This component will cover training of staff for all the beneficiary
institutions and improve the links with the productive sector. As one way of linking
with the private sector, the project will establish an incubator centre at the selected
training institutions based on the thematic areas. The incubator programme aims at
helping promising entrepreneurs who complete their technical training in order to turn
innovation into business.
Curricula Review in Partnership with Industry: The project will update the curricula
by strengthening the links with private sector, through improving content, teaching and
learning processes as well as an increased employability of graduates. The main trades
that are targeted are Engineering (mining, electrical and electronics, small engines, and
automobile); ICT (CISCO Networking), Boat building, Refrigeration, Textile, and E-
and Distance learning.
Bridging Course for post-secondary school graduates: The component will also fund
an ODL bridging course in Mathematics, Sciences and English Language for two
thousand post-secondary school graduates (of which 40% will be females) who could
not meet entry requirement to HE/TEVET to increase enrollment in Science and
Technology in HE/TEVET institutions. MoEST in collaboration with SMCs and PTAs
of secondary schools will draw-up selection criteria, create awareness of the activity in
the schools and select beneficiaries ensuring a forty-percent participation of female
candidates. The list of selected candidates will be submitted to the Bank for review.
Component 4
Impact
Evaluation,
Development
of Monitoring
and
Evaluation
System and
Project
Management
2.64
Impact Evaluation: The project will fund an impact evaluation that will provide
robust evidence as to the type of interventions that are successful (or not) in increasing
participation and improving retention in HEST, in improving the quality of HEST
graduates, as well as in strengthening links with the productive sector (including the
insertion of HEST graduates). It will conduct 2 studies on a) merit based scholarships
and on b) improving the quality of HEST. The impact studies will run throughout the
life-span of the project and will generate knowledge that will inform future Bank’s
interventions in HEST in Malawi.
Enhanced Monitoring System and Establishment of Labour Market Information
Management System (LMIMS): This component will help build a monitoring and
evaluation system in HEST which is critical for the success of the project. This will be
done through conducting an initial baseline assessment of the input, process and output
systems at project commencement, during and after implementation. The component
will also establish a Labour Market Information Management System at the Ministry
of Labour to be supported by the enhanced MIS systems at other sister implementing
agencies.
Project Management: The project will also provide the resources needed to cover
operating costs and other necessary expenditures to ensure effective and timely project
implementation.
2.2. Technical solution retained and other alternatives explored
2.2.1 The project considers a combination of improving physical infrastructure with
enhanced ICT as a means of expanding access and inclusiveness in higher education.
This is a slight departure from the traditional institution-based training that excludes many
vulnerable groups in the community (youths, women, retirees and the disabled). ODL
programmes that will be established in the ICT centers in most of the benefiting institutions
6
will service these target populations. The project has a strong focus on skills development
that includes entrepreneurship training for self-employment in partnership with industries, an
aspect that is lacking in S&T and TEVET training in many institutions.
2.2.2 The project will further use data generated from Labour Market Information
(LMI) surveys on priority skills needed by the productive sector at each professional
level. The surveys will be conducted periodically during the project’s life-span to inform
focus of further training in particular skills. This is a departure from the way skills training
has been developed in the past; this innovative approach will reduce the skills mismatch, over
production of graduates in particular skills as well as the current supply-driven rather than
demand-driven skills development prevalent in the country. The design also promotes
selectivity in skill provision as each institution will be designated to lead in a particular area
of specialisation. The project’s design strongly emphasises the PPP arrangement in curricula
design, priority skills identification, capacity building for staff, provision of industrial
attachment of students to gain practical experience in vocational trades while in training and
private telecommunication companies’ involvement in ICT access and connectivity to
enhance quality, relevance and sustainability of skills development that translates to
employability of graduates in the productive sector.
2.2.3 Some alternative technical solutions were considered in the design of the Project.
The reasons for their rejection are summarized in Table 2.2 below:
Table 2.2: Project alternatives considered and reasons for rejection Alternative Brief description Reasons for rejection
Provision of additional
generic infrastructure and
equipment in HE and
TEVET institutions.
The approach would ensure
the provision of generic
infrastructure and equipment
to HE and TEVET institutions
without the use of ICT
services.
This approach could not be acceptable
because it would expand access in terms of
infrastructure only and not take into
account current developments in improving
access to education through the use of ICT.
Promotion of current
supply oriented skills
development.
The approach was to enhance
the technical capacities of the
training institutions to deliver
the current supply oriented
skill training
This approach was deemed not appropriate
as it does not consider the linkage of
technical skill provision to the needs of the
industry and does not provide for specific
areas of specialization. Therefore it does
not ensure employability of graduates.
2.3. Project type
This project is an investment operation designed to increase access and improve the
quality and relevance of HEST in Malawi. While there is an Education Sector Wide
Approach (E-SWAp) to education development that was introduced in 2008, its functioning
is experiencing capacity challenges in the fiduciary area. The investment modality has been
adopted to allow the on-going capacity strengthening initiatives of the E-SWAp to unfold and
the Bank to conduct the necessary assessment that will inform its decision to fully join the
other development partners in the Joint Financing Agreement (JFA). Its members are Fast
Track Initiative (FTI) (USD30.0 m); DFID (USD22.4 m); WB-IDA (USD9.0 m); German
Development Fund (KfW) (USD7.5 m); and UNICEF (0.25 m).
7
2.4. Project cost and financing arrangements
2.4.1 The total cost of the project is estimated at UA 29.45 million. This amount is net of
taxes and duties, of which UA 20.25 million (68.8%) is in foreign currency and UA 9.20
million (31.2%) is in local currency. The cost estimate includes 5% physical contingency for
all items except for construction and furniture for which physical contingency is calculated at
10%. Price escalation has been calculated based on 2.5% annual price increase for foreign
currency and 3.5% for local currency throughout the five-year implementation period. A
summary of cost by component of the project is presented in Table 2.3.
Table 2.3: Project Cost Estimates by Component (in UA million)
in UA million
Components FC LC Total Costs % Foreign
1. ICT Development 6.22 0.00 6.22 100.0%
2. Increasing Access to HEST 7.67 6.56 14.23 53.9%
3. Improving Quality and Relevance HEST 3.02 0.00 3.02 100.0%
4. Development of M&E System and
Project Management 0.96 1.34 2.30 41.7%
Total Base Cost 17.87 7.89 25.76 69.4%
Physical Contingency 0.90 0.39 1.30 69.6%
Price Contingency 1.48 0.91 2.39 61.9%
Total Project Cost 20.25 9.20 29.45 68.8%
2.4.2 The project will be financed by an ADF loan of UA 9.05 million, an ADF grant of
UA 10.95 million, a NTF loan of 6.50 million, and a contribution of the GoM of UA 2.95
million. The ADF loan will finance the construction of physical facilities (laboratories, e-
libraries, workshops classrooms together with furniture and equipment while the ADF grant
will finance the development of ICT centers, training, impact evaluation and a baseline study,
scholarships and the bridging course and the establishment of the LIMS. The NTF loan will
finance the procurement of ICT equipment and related services. GoM counterpart funds will
finance furniture and will co-finance the civil works, operating cost and scholarships under
miscellaneous. The respective contributions are as shown in Table 2.4 below.
Table 2.4 a): Sources of Financing
in UA million
Sources of Financing FC LC Total Costs % Total
ADF LOAN 6.24 2.82 9.05 30.7%
ADF GRANT 7.51 3.44 10.95 37.2%
GOM 0.00 2.95 2.95 10.0%
NTF 6.50 0.00 6.50 22.1%
Total Project Cost 20.25 9.20 29.45 100.0%
8
Table 2.4 b): Project Cost by Component and by Source of Financing
in UA million
Components ADF
LOAN
ADF
GRANT GOM NTF
Total
Cost %
1. ICT Development 0.00 0.60 0.00 6.50 7.09 24%
2. Increasing Access to HEST 9.05 4.75 2.52 0.00 16.32 55%
3. Improving Quality and Relevance HEST 0.00 3.39 0.00 0.00 3.39 12%
4. Development of M&E System and
Project Management 0.01 2.22 0.42 0.00 2.64 9%
Total Cost per Source of Financing 9.05 10.95 2.95 6.50 29.45 100%
Table 2.4 c): Project Cost by Category of Expenditure and by Source of Financing
Categories of Expenditure
in UA million
ADF
LOAN
ADF
GRANT GOM NTF
Total
Cost %
A. Goods 0.06 3.45 0.68 6.13 10.32 35%
B. Works 7.94 0.00 0.70 0.00 8.64 29%
C. Services 1.05 4.06 0.00 0.37 5.48 19%
D. Operating cost 0.00 1.14 0.42 0.00 1.56 5%
E. Miscellaneous 0.00 2.30 1.14 0.00 3.44 12%
Total Cost per Source of Financing 9.05 10.95 2.95 6.50 29.45 100%
2.4.3 The cost of the project by category of expenditure and the expenditure schedule by
component are presented in Tables 2.5 (a) and (b) and 2.6.
Table 2.5 a): Project Cost by Category of Expenditure
Categories of Expenditure in UA million
FC LC Total Costs % Foreign
A. Goods 8.47 0.58 9.05 93.5%
B. Works 4.53 3.02 7.55 60.0%
C. Services 4.87 0.00 4.87 100.0%
D. Operating cost 0.00 1.34 1.34 0.0%
E. Miscellaneous 0.00 2.95 2.95 0.0%
Total Base Cost 17.87 7.89 25.76 69.4%
Physical Contingency 0.90 0.39 1.30 69.6%
Price Contingency 1.48 0.91 2.39 61.9%
Total Project Cost 20.25 9.20 29.45 68.8%
Table 2.5 b): Project Cost by Category of Expenditure
Categories of Expenditure
in UA million
FC LC Total
Costs
%
Foreign
A. Goods 9.64 0.68 10.32 93.4%
B. Works 5.13 3.52 8.64 59.3%
C. Services 5.48 0.00 5.48 100.0%
D. Operating cost 0.00 1.56 1.56 0.0%
E. Miscellaneous 0.00 3.44 3.44 0.0%
Total Project Cost 20.25 9.20 29.45 68.8%
9
Table 2.6: Expenditure Schedule by Component
Components Year 1 Year 2 Year 3 Year 4 Year 5
1. ICT Development 0.23 0.27 1.47 2.47 2.66
2. Increasing Access to HEST 1.89 2.95 3.90 4.79 2.79
3. Improving Quality and Relevance HEST 0.17 0.34 1.02 1.02 0.84
4. Development of M&E System and
Project Management
0.68 0.61 0.47 0.45 0.43
Total Project Cost 2.97 4.17 6.86 8.73 6.71
2.5. Project’s target area and population
The Project will be implemented in three university campuses and 4 technical colleges
with a nation-wide coverage. The direct beneficiaries of the improved access to HEST will
be graduates from secondary and post primary school levels, especially female students,
prospective employers of graduates, the GoM, and society at large. The TEVET sub-
component will cover all the four (4) Government Technical Colleges (Nasawa and Soche in
the south region and Lilongwe and Salima in the centre) with a combined enrolment of 3,350
students per year and the two universities (three campuses - Chancellor and the Polytechnic
in the south and Mzuzu University in the north) that are currently enrolling 5,947 students per
year. The HE sub-component will cover: a) Chancellor College; b) the Polytechnic; and c)
Mzuzu University. All the three university campuses are expected to benefit a total 8,000
students per year. An additional 85 lecturers (64 TEVET and 21 HE) will receive training to
upgrade their technical and teaching skills through the project. 40% of all the beneficiaries
will be females in both levels.
2.6. Participatory process for project identification, design and implementation
2.6.1. 2.6.1. The process of project formulation for the proposed operation was highly
participatory. It entailed a visit to all the target institutions to discuss proposed project
activities. The project was designed incorporating the inputs/advice made by all beneficiary
institutions, MoEST, TEVETA, Civil Society organizations active in the education sector,
the Education Cooperating Partners Group, industry, the private sector and other relevant
stakeholders visited during the project identification, preparation and appraisal missions.
The Civil Society Education Coalition (CSEC) and representative of the private sector will
be members of the Steering Committee and will monitor project activities.
2.6.2 Consultation sessions were held with officials of relevant GoM ministries, the
beneficiary institutions, the donor community in the education sector and civil society
organisations. These consultations helped to identify the priorities, constraints and
opportunities that could inform the design of the project. Key issues that emerged from these
consultations include: (i) absence of information on the impact of the operations of HE and
TEVET subsector; (ii) a lack of capacity in learning areas to meet the high demand for
education in the subsector resulting in over-crowding of students; (iii) absence of a labour
market information monitoring system to inform the provision of skill training; (iv) a general
lack of capacity of the personnel to deliver and manage education provision; and (v)
insufficient access to and use of ICT to enhance the provision of education in the subsector.
The project design includes specific provisions to address these issues. The implementation
arrangements of the project include the creation of a Project Steering Committee to provide
strategic guidance during implementation. The project’s monitoring arrangements also
10
provide for beneficiary involvement as well as CSOs and the private sector in monitoring the
implementation of the project.
2.7. Bank Group experience, lessons reflected in project design
2.7.1 The Bank has already financed five education operations in Malawi that helped to
address access and quality issues in primary and secondary education. It started its
support to education in Malawi with a first intervention in 1980 that focused on a study of
primary and tertiary education (USD8.8Million). Since then, the Bank has approved 4
projects. The Strengthening of Primary and Secondary Education Project (Education II,
UA15.6M) was approved in 1986, followed by the Strengthening Access to Primary
Education Project (Education III, UA12M). These two operations focused heavily on
primary education with limited activities in secondary education. The next two projects,
Support to Community Day Secondary Education Project (Education IV, UA15M), 2001 and
Support to Community Day Secondary Education Project (Education V, UA15M grant), 2006
focused entirely on secondary education. Four of these operations are completed and the
related PCRs were prepared. The implementation of the 5th
project is satisfactory and it will
be completed in December 2012. The Bank has also financed a study in 2009 to assess the
skill needs of the private sector. The outcomes and impact of the Education III and IV
projects include improved access to quality primary and secondary education. Enrolment
figures in some schools increased by 75% between 2004 and 2008. Girls’ enrolment also
increased in the same schools. The pass rates for secondary students in Malawi School
Certificate of Education improved from 5% in 1999 to an estimated 37% in 2009. The
teaching performance of 1,500 Science and Mathematics teachers in all CDSS in Malawi also
improved, thus enhancing the quality of primary and secondary education. The GoM project
management capacity was also strengthened.
2.7.2 The achievements of these previous operations have paved the way for further
interventions in other sub-sectors of the educational system. Key lessons drawn from the
implementation of past operations in the sector which have informed the design of the new
project include: (i) having bigger contract packages for civil works which will attract well
established and experienced contractors with enough qualified staff, equipment and resources
in the bidding process, will reduce delays and cost escalation; (ii) existence of an effective
project management team assisted by Coordinating teams in the beneficiary institutions is
necessary for effective implementation; (iii) close monitoring by the Malawi Field Office and
close coordination with other development partners contribute to timely implementation; (iv)
conducting an education facility and equipment audit in all beneficiary institutions is
necessary to inform adequate estimate of project costs; (v) drawing a long term maintenance
plan for facilities and equipment by beneficiary institutions is key to sustainability.
Accordingly, contract packaging, effective project implementation and monitoring
mechanisms, facility and equipment audits as well as provision of long term maintenance
plans for equipment by beneficiary institutions have been provided for in this project.
Furthermore, the project design includes full involvement of the beneficiary institutions and
frequent supervision and communication between the financiers, implementing agencies and
supervising consultants in the case of civil works.
2.8. Key performance indicators
2.8.1 The project results-based logical framework contains key impact, outcome and
output indicators. The main outcomes expected are related to: (i) Increased access to ICT
11
for development facilities and services in education; (ii) Increased access to HEST and
TEVET; (iii) Improved Quality and Relevance of HEST in target TEVET and HE Institutions
with links to the productive sector; and (iv) An impact evaluation and a monitoring and
evaluation system with information and indicators on the performance of higher education
and skills development.
2.8.2 Progress towards achieving these outcomes will be monitored through the
Monitoring and Evaluation System to be put in place. The details of the project
monitoring arrangements are described in section 4.6. The project is also funding impact
evaluation activities that will generate knowledge and indicators to measure performance and
achievements. These impact evaluation activities are summarized in Technical Annex C5.
3 – PROJECT FEASIBILITY
3.1. Environmental and Social impacts
3.1.1 Environment: The project is classified as category II according to the Bank’s
environmental guidelines and an Environmental Management Plan has been prepared. Activities under the project will include activities for expanding access including new
constructions at the seven institutions such as lecture rooms, engineering laboratories,
libraries, workshops, ICT infrastructure and business centres. Environmental enhancement
activities will build on already being implemented by the Government. For example a major
tree planting exercise was carried out by MoEST in May 2011. Disposal of outdated
equipment will be done in accordance with the National Environment Management Act
(NEMA ACT) regulations. The project promotes the use of sustainable building technologies,
reducing the impact on the environment and reducing recurrent cost. The Department of
Environmental Affairs was consulted during the Appraisal mission on the preparation of the
EMP. Details on the environmental analysis are given in Technical Annex B7.
3.1.2 Climate Change: The project will have minimal impact on climate change. The
Universities like all other institutions in the country are required to adhere to the provisions
of the National Environment Management Act (NEMA ACT) and the Occupational Health
and Safety Act (OHSA ACT). These regulations address pollution concerns. Outdated
equipment will be replaced with more efficient equipment that has less impact on the
environment. The increased use of ICT in the sector will greatly contribute to the reduction of
the use of paper thus minimizing the impact on climate change.
3.1.3 Social: The project will have a critical impact for the roadmap towards
implementation of the social pillar in Malawi’s MGDS I and MDGS (II). Investments in
higher education and skills development will derive more economic and social benefits by
enabling Malawi to raise productivity in the MGDS key production sectors and to compete in
the global market. The enhanced university education and skills development will contribute
to a knowledge based economy through skilled manpower. The collaborative strategy that the
project will adopt in its implementation will create a platform for increased collaboration
between the target participating universities, TEVET institutions and workplace to bridge the
gap between training and the world of work. The development of good quality and relevant
skills training through the HEST intervention will address the vicious circle of low education
and skills that leads to low productivity and poverty of most countries in sub-Saharan Africa
including Malawi. The policy of equitable access to higher education institutions will be
reviewed under Component IV to evaluate its desired impact to female enrolment in TEVET
12
and higher education and appropriate recommendation made for implementation under the
project. Details on the social analysis are given in Technical Annex B7.
3.1.4 Poverty Reduction: This project will make an important contribution in reducing
the proportion of people living in poverty. According to the 2009 Welfare Monitoring
Survey, 40% of Malawians live in poverty. Official estimates suggest that about 3% of
Malawians are unemployed. The development of skills in HEST is a key driver for economic
growth in developing countries. The selection of the beneficiary sites made a deliberate effort
to ensure the production of skills in all the three regions of the country, thus contributing to
inclusive growth. The project will work to increase access at the same time adjusting skills
requirement to accommodate changes in technology and innovation in order to drive
economic growth.
3.1.5 Gender: The project will increase female participation in skills training especially
in Science & Technology and core technical related courses that have low female
enrolment. This will be done in part through awarding of scholarships and funding an ODL
based bridging course in Mathematics and Science to enable about 2,000 female participants
meet entry requirement for HE and TEVET training. The scholarship, which will be given to
40% of females, will also assist them in accommodation related issues since the project will
not fund construction of hostels. This intervention is to reduce the wide gap that exists in
Malawi in such areas as entrepreneurship where currently 1 out of 10 women own and
manage their own enterprises as compared to 16% of men. In Malawi females comprise 52%
of the population. Females have less than 13% of the annual TEVET graduates in 2003-2008
and enrolment in University for females stands at 30% (Malawi: Skills for Private sector
Development, AfDB, 2009). This intervention is geared towards increasing these levels by
assisting many females gain new and higher level skills that will enable them enter the labour
market and contribute to lowering gender disparity in the work force. The e-learning
approach which is flexible in its approach will give opportunity for more female participation
as it will address the issue of time constraint and encourage those who dropped out of the
school system due to early marriage or pregnancy to acquire further learning and training.
3.1.6. Involuntary Resettlement: The project sites are already established as it is serving
existing institutions and therefore it is not expected to directly trigger any involuntary
relocation. The laying of fibre optic cable will be the responsibility of the service providers
and they already have measures to deal with issues of resettlement in the likely event that
they occur. Disruption of economic activity, livelihood sources or displacement of
populations during implementation is not foreseen.
3.2 Economic impact
3.2.1 The project is economically sound and beneficial to both technical and vocational
and university education in Malawi. It will contribute to the GoM’s goal of improving the
capacity of the education system to provide adequate quality human resources for
development by increasing the percentage of skilled and qualified human resources from less
than 10% and 5% in TEVET and HE respectively in 2006 to more than 10% or more
(TEVET) and 6% (HE) in 2016. The project’s main benefits are drawn from efficiency gains
as more results will be achieved through the delivery of up-to-date and relevant education
programs in both subsector levels, thus ensuring internal (improved progression rates within
the subsector) and external efficiency in terms of increased graduations and employability of
graduates. Details on the economic analysis are given in Technical Annex B6.
13
3.2.2 Available data indicate that an additional year of university education in Malawi
leads to a 62% and 86% wage increase for employed males and females respectively.
One more year of TEVET education leads to 20 and 28 percent wage increase for males and
females respectively. The high private rate of return to university and TEVET education is
consistent with the perceived skilled labour shortage. The production of adequate numbers of
both higher education and technical and vocational graduates will make a major contribution
to the improvement of the performance of the economy by ensuring the availability of
qualified personnel to benefit industry and production of goods and services, thus propelling
the economy’s move from the predominantly consuming and importing to the desired
producing and exporting status.
3.2.3 The project will also provide ICT and incubation centres which have a high
potential for job creation and income generation. The incubation centres, which will also
foster the link between training institutions and the productive sectors, will be based on
thematic areas in which each of the institutions will lead. This aspect is particularly important
due to the spread of the institutions throughout all the regions of the country. The impact
evaluation to be conducted will provide further detailed information on the potential
economic and financial benefits of the project.
4 – IMPLEMENTATION
4.1. Implementation arrangements
4.1.1 The executing agency of the project will be the Ministry of Education, Science and
Technology through the Higher Education and the Technical and Vocational Education
Department. The activities related to increasing access and connectivity of the project will
be implemented by the existing Education Infrastructure Management Unit (EIMU) under the
Planning Department of the Ministry. EIMU, a merger of the current ADF education project
implementation team and the DFID’s sponsored Infrastructure Unit, will coordinate project
implementation. The GoM has granted a waiver for the EIMU to continue to be responsible
for the implementation of on-going Education V project as well as the proposed HEST
project. The EIMU is headed by a project coordinator and a pool of experienced and qualified
professionals. The finance department is headed by the finance and administrative manager,
and assisted by accountants as detailed in paragraph 4.3.1 of this report.
4.1.2 An assessment of the capacity of the EIMU to implement the project revealed
that it is adequate to implement the project. The Government is recruiting an architect and
a monitoring and evaluation officer to boost the present capacity. This is being paid for with
already available financing. The EIMU’s implementation capacity will be further
strengthened by dedicated teams at each of the benefiting institutions of the two colleges of
the University of Malawi and Mzuzu University; and the MoEST Technical Colleges.
Specialist Consultants will be recruited to support the project implementation teams in the
implementation of the different activities of the project.
4.1.3 A Project Steering Committee will be formed to guide and monitor
implementation progress. This committee will include members from the key sector
Ministries, including the Ministries of Finance, of Education Science and Technology, of
Labour, Trade and Industry; TVETA; the National Commission for Science and Technology;
the private sector, industry and the Civil Society Education Coalition.
14
4.2 Procurement Arrangements
4.2.1 All procurement of goods and works and acquisition of consulting services
financed by the Bank will be in accordance with the Bank's applicable rules and
procedures. These include the Rules and Procedures for Procurement of Goods and Works
and the Rules and Procedures for the Use of Consultants, using the relevant Bank Standard
Bidding Documents. Appendix VI shows the procurement arrangements for the project. The
resources, capacity, expertise and experiences of MOEST and the implementing institutions
and the Procurement Plan are described respectively in Technical Annex B5. The project is
financed by the ADF window and the NTF window. The ADB acts on behalf of the NTF and
ADB rules of procurement are generally applicable to NTF loans. The application of the
different procurement rules to the various components of the project would add a level of
complexity to the procurement arrangements. An integrated approach to procurement is
proposed by making the ADF universal procurement rules applicable to procurement under
the NTF loan which would allow all procurement under the project to be undertaken using
the same rules.
4.2.2 The capacity of the Colleges under the University of Malawi (i.e. Chancellor
College and Polytechnic) and Mzuzu University has been assessed and is acceptable to
handle procurement under this project. They will be responsible for procurement of their
requirements regarding the following items: Workshop equipment; ICT equipment
(computers, servers etc) hardware and software; and Technical Assistance in web designs,
and networking.
4.2.3 The MoEST Procurement Department will handle procurement for workshop
equipment, ICT hardware and software and related support items/services for the 4
technical colleges. The capacity of the Department has been assessed and found
acceptable. The capacity of the EIMU has been assessed and it was established that its
capacity to manage procurement of ICT and workshop equipment needs to be strengthened.
4.2.4 Post Review and Thresholds for procurement methods: Contracts for goods, works
and consultancy services that are subject to post-review are shown in Table 4.2. The first
two contract for goods and works and for services contracts below shall be prior reviewed.
Appropriate bidding documents and evaluation reports will be kept at the project
implementation agency for post-review audit. All other contracts and all direct contracting
contracts of any value will be subject to prior review.
Table 4.2 Procurement thresholds
Procurement thresholds for Goods and works
Shopping NCB ICB
Goods < UA 75,000 UA 75,000- UA 300,000 > UA 300,000
Works < UA 100,000 UA 100,000-UA 750,000 > UA 750,000
Procurement thresholds for Services
Consultancy services (individual) < UA 70,000 short listing (Borrowers may consider the
advantage of advertising at their option)
Consultancy services (individual) (UA 70,000 - UA
100,000)
Advertisement and short listing
15
4.3 Financial Management and Audit Arrangements
4.3.1 The project’s financial management transactions will be managed within the
existing set-up in the MoEST. The existing Education Infrastructure Management Unit
(EIMU) will use the existing accounting system to record and process all financial
transactions under the project. The Finance Department is headed by the finance and
administrative manager, assisted by six accountants (1 senior accountant, 1 accountant and 4
accounts assistants). An assessment of MoEST’s financial management capacity for the
implementation of the project indicates that they satisfy Bank requirements to handle and
coordinate the Financial Management (FM) aspect under the project. The financial
management capacity for University of Malawi and Mzuzu University is also satisfactory to
support project activities.
4.3.2 The FM systems within the EIMU will be further strengthened. This will be done
through the following actions that will be undertaken by GoM:
i) Installation of a suitable accounting package that can adequately record project
transactions and generate reports showing Statement of Receipts (funds received from
the Bank, counterpart funding and where applicable, co-financiers’ funding) and
Expenditures (by component and category) to enable proper monitoring of
expenditures and reporting. This is necessitated by the fact that the configuration in
the GoM Integrated Financial Management Information Systems (IFMIS) whose
implementation is still ongoing does not capture EIMU transactions in real time, even
though project data and expenditures will still be captured in IFMIS by the
Accountant General’s Office at periodic intervals through entry of information from
reports submitted by MoEST to facilitate cash management and also to record these
expenditures in Malawi’s national accounts. Similar FM arrangements exist for the
Bank’s on-going Education projects being implemented by EIMU.
ii) MoEST/EIMU to prepare an Accounting and Implementation manual for the project.
iii) MoEST to ensure that the project will be included as part of the Ministry’s Central
Internal Audit Unit work program.
4.3.3 As part of further strengthening of the project’s FM capacity within MoEST, the
EIMU will also provide training in FM. This training will be for Ministry staff(s) assigned
to the project for purposes of capacity building and skills transfer with the Ministry.
4.3.4 Audit: A separate annual audit report will be prepared for the project with the
involvement of the National Audit Office in Malawi as per their mandate. The audit of
the project can be subcontracted as may be necessary to a firm of private auditors to be
procured through short-lists using the Bank’s rules and procedures for procurement and the
cost will be financed from the loan if carried out by a private firm. The project audit will be
carried out in accordance with an audit Terms of Reference (TOR) that will be approved by
the Bank and the audit report will be sent to the Bank no later than six (6) months after the
end of the respective fiscal year together with a management letter indicating any weaknesses
in internal controls together with the responses from management.
16
4.4 Funds Flow and Disbursement Arrangements
4.4.1 Disbursements under the ADF loan and grant will be made in accordance with the
Bank’s rules and procedures as laid out in the Disbursement handbook. In addition, the
Bank will issue a Disbursement Letter of which the content will be discussed and agreed
during negotiations. The disbursement methods that will be used for the project include the:
(i) Direct Payment and (ii) Special Account method. The disbursement letter which the Bank
will issue to government will outline the disbursement procedures, disbursements period and
other specific applicable guidelines for the project.
4.4.2 The Special Account method will be used for financing the project’s operating
and other recurring costs to be financed under the project. Government will open two
Special Accounts in foreign currency and two local currency accounts. All the accounts will
be opened with banks acceptable to the Bank. Funds from the NTF will be used only for
foreign cost and expenditures will be paid through direct payment. The local currency
accounts will be used to transfer money from the special accounts to cover eligible project
expenditures only. The local currency accounts will be managed by the EIMU and will be
used for operating expenses of the EIMU; the beneficiary institutions (University of Malawi,
Mzuzu University and the four technical colleges respectively); and the implementing
institutions (Ministries of Labour; Trade and Industry; and TEVETA). Different accounting
codes will be created for each institution and each activity accordingly. A separate bank
account shall also be opened for funds from Government as counterpart contribution. The
EIMU will process all transactions relating to these bank accounts and separate cash books
shall be maintained for each account within the existing accounting system.
4.4.3 The use of the special accounts will follow the Bank’s standard disbursement
procedures. An initial advance for six months activities will be deposited in a special
account that will be opened in a commercial bank acceptable to the AfDB based on approved
work plans and budgets. Subsequent replenishments of the special accounts will be based on
justification and submission of statements of expenditures for at least 50% of the preceding
advance, and 100% of any previous advances. The EIMU will coordinate the preparation and
submission of all Special Account replenishment requests and statement of justifications to
the Bank. Detailed financial management and disbursement arrangements are described in
Technical Annex B4.
4.5 Implementation schedule
The project will be implemented over a period of 5 years. The capacity building activities
will start by June 2012, with the project closing by December 2017. The Bank will monitor
implementation through reviews of project quarterly progress reports and field visits to be
conducted twice every year. The project implementation timeframe is presented in page ix.
4.6. Monitoring
4.6.1 Monitoring will mainly be done jointly by the Bank, EIMU, the Project
Implementation Teams of the MoEST and the project Steering Committee. An M&E
officer at EIMU, will have principal responsibility for project monitoring. The Bank’s
monitoring will be periodic; including six-monthly supervision missions, a mid-term review,
an impact evaluation study and a review at completion and this will be supported by the
17
Malawi Field Office. The logical framework will serve in the monitoring and the evaluation
of the attainment of the project’s outcomes.
4.6.2 All the monitoring reports will include gender disaggregated data, with
information derived from the LMIMS. An employment and gender audit will be conducted
as part of the project’s Mid-term Review. The private sector and the CSEC will conduct
participatory monitoring of the project. A further mechanism for stakeholder involvement is
the annual Mid-year and Joint Sector Review meeting which will are organized by the
Ministry to discuss education programmes’ implementation issues. Table 4.3 shows the
detailed sequence of the processing and monitoring activities
Table 4.3 Monitoring schedule
4.7. Governance
4.7.1 The governance environment has been relatively stable since the 2009 elections. In
the 2011 Global Peace Index, Malawi is ranked second to Botswana as the most peaceful
country in Africa. The country has made progress in fighting fraud and corruption. The
existence of a National Anti-Corruption Strategy and Institutional Integrity Committees also
minimizes the risk of abuse, fraud and corruption. Malawi has moved from a Corruption
Perception Index score of 2.8 in 2005 to 3.0 in 2011 with an overall ranking of 100 out of 182
countries in the world and 14 out of 48 countries in the Sub-Saharan Africa.
4.7.2 Recent political developments arising from concerns raised by civil society
organizations over political and economic governance issues threaten the gains Malawi
has achieved over the years. In order to address these issues, the GoM has instituted high
level dialogue with civil society. The resumption of talks between the IMF and the GoM is
also bringing hope for economic stability in the country. The Bank will thus work with other
Development Partners as well as with the GoM in supporting measures for promoting sound
Timeframe Milestone Monitoring process /
feedback loop
January 2012 Board Approval ADF
February 2012 Signing of Loan Agreement ADF and GoM
April 2012 Loan Effectiveness GoM and ADF
April 2012 Mid-year Sector Review and Project Launching GoM and ADF
July 2012 First Project supervision Mission GoM and ADF
November 2012 Annual Joint Sector Review meeting Project management team & ADF
December 2012 Second Supervision Mission Project management team
April 2013 – November
2016
Repeat of Mid-year and JSR reviews as well as
supervision missions Project management team & ADF
December 2013 Submission of 1st Audit Report GoM
July 2014 Submission of Mid-term Report Project management team & ADF
December 2014, 15 &
16 Submission of 2nd ,3rd and 4th Audit Reports GoM
December 2016 Last Special Account Replenishment Date GoM and ADF
June 2017 Completion GoM
December 2017 Submission of PCR GoM and ADF
June 2018 Last Disbursement Date GoM and ADF
June 2018 Submission of 5th and final Audit Report (18 months
cover) GoM
18
macroeconomic and private sector development reforms.
4.8. Sustainability
4.8.1 The sustainability of the project outcomes is promoted by the implementation of
the project by the MOEST. This will be done through the EIMU and the Project Teams in
the individual implementing partner institutions. This establishes strong ownership, which is
a necessary condition for sustainability. The capacity of the MoEST will be strengthened
under the project to provide it with adequate skills to continue playing its policy-making and
policy-implementation and coordination roles, which are essential for the continuous
improvement of the enabling environment for effective education services delivery.
4.8.2 The sustainability of ICT investments will be ensured. To that end, three sets of
measures will be implemented: (i) the availability of ICT unit/section and dedicated technical
staff for management and maintenance of ICT equipment; (ii) the existence of budget lines
for purchase and maintenance of ICT equipment; and (iii) plans for revenue generating
activities from proposed ICT services to be provided including document reproduction and
Internet services of auxiliary services. Target institutions demonstrated their commitment and
were in agreement on the project providing declining support to the operation and
maintenance of the equipment while the GoM provides support to the same issues on an
increasing trend. In addition, the GoM’s commitment to ensuring sustainability of the
equipment after the project lifespan is elaborated in the Malawi National ICT Policy and
Strategy respectively (see excerpts in Technical Annex C4).
4.8.3 Sustainability is further supported by capacity building activities. The public
institutions, TEVETA, MoTI and MOL, will receive staff training and be supported under the
project to conduct PPP and industry–training institutions linkage actions. Recurrent costs to
be generated by the project involve salaries for lectures, maintenance cost and service fees for
internet connectivity. These will be budgeted for by the GoM during and after the project.
4.9. Risk Management
During the project formulation process, a thorough assessment of potential risks was
conducted. The project builds on lessons learned from the five previous operations by the
Bank in the Education sector spanning from 1980 to present including mapping of risks (See
Technical Annex B3). The potential risks and mitigation measures are shown in 4.4.
Table 4.4 Risks and risk mitigation measures Risk Rating Mitigation Measure(s)
1. Prevailing macro-economic
environment in Malawi that is
characterized by shortages of fuel,
scarcity of foreign exchange, and lack of
essential drugs.
M Government has instituted high level dialogue with civil society and
has resumed talks with the IMF on improvements of the macro-
economic environment. The Bank will work with other Development
Partners and GoM in supporting measures for promoting sound
macroeconomic and private sector development reforms.
2. Insufficient statistical capacity at
NSO, EMIS and LIMS
M Statistical capacity building is part of GoM’s capacity building
programme
3. High cost of bringing the fiber link to
some HE institutions premises
L GoM (MoEST) through the Regulator oblige operators to extend
fiber optic access points at participating institutions.
4. Abuse of merit based scholarships. L GoM to set up a robust merit based scholarship allocation mechanism
5. Limited skills for M&E and data
collection and analysis to measure
progress and achievement
L M&E of project within the context of the sector and national M&E
capacity development programme
19
6. Low quality of designs and poor
workmanship
M Installation of Coordinating Units in the Institutions. ICB for award
of contractors and consulting firms, forming consortia with local
contractors/offices.
4.10. Knowledge Management
4.10.1 The project will contribute to knowledge generation and management. The
project’s M&E process includes a robust LMIMS to generate data through surveys by the
Ministry of Labour, the beneficiary institutions and MoEST through EMIS to feed into the
decision-making process. This will provide the knowledge base to determine priority skills
and professional levels that are required by industry and private sector at a particular time.
4.10.2 The impact evaluation activities of the project will generate knowledge of
interest to GoM, the private sector, development partners and other stakeholders. They
will provide robust evidence as to the types of interventions that are successful (or not) in
increasing participation and improving retention in HEST, in improving the quality of HEST
graduates, as well as in strengthening links with the productive sector (including the insertion
of HEST graduates). These studies will enable the development of policies to improve access
to HEST in Malawi. Lessons learned from these impact evaluations will also be of great
value in developing future Bank projects and programmes elsewhere on the continent.
5 – LEGAL INSTRUMENTS AND AUTHORITY
5.1. Legal Instrument
The Project will be financed using three legal instruments: (i) an ADF Loan Agreement (ii)
an ADF Grant Agreement, and (iii) a NTF Loan Agreement.
5.2 Conditions Associated with Bank’s Intervention
A. Conditions Precedent to Entry into Force
5.2.1 The conditions precedent to the entry into force for the project shall be as follows:
(i) The entry into force of the ADF Loan Agreement is subject to the fulfilment of the
Republic of Malawi (the “Borrower”) of the conditions stipulated in Section 12.01 of the
Fund’s General Conditions Applicable to Loan Agreements and Guarantee Agreements
(Sovereign Entities).
(ii) The entry into force of the NTF Loan Agreement is subject to the fulfilment of the
Borrower of the conditions stipulated in Section 12.01 of the Fund’s General Conditions
Applicable to Loan Agreements and Guarantee Agreements (Sovereign Entities). and
(iii) The entry into force of the ADF Grant Agreement shall be upon its signature by the ADF
and the Republic of Malawi (the “Recipient”).
B. Conditions Precedent to First Disbursement
5.2.2 The obligation of the Bank to make the first disbursement of funds shall be
conditional upon entry into force of the Agreement and the fulfilment by the GoM, of the
following conditions (if not concluded prior to the negotiations):
(i) Open two Special Accounts and two local accounts and provide details to the Bank; and
20
(ii) Establish a Project Steering Committee with a membership acceptable to the Fund.
C. Other Conditions
5.2.3 The Borrower/Recipient shall:
(i) prepare and submit for the Fund’s No Objection (i) a Project Implementation Manual, (ii)
a Procurement Manual and (iii) a Project Accounting Manual by 31st July 2012.
(ii) recruit (i) an Architect, and (ii) a Monitoring and Evaluation (M&E) specialist, with
qualifications and experience acceptable to the Fund by 30th June 2012.
(iii) develop (i) formal criteria for selecting beneficiaries of Merit-based Scholarships (ii) a
complete curriculum for Post-secondary Bridging Courses, and submitted these
documents for the Fund’s No Objection by 31st December 2012.
(iv) take all actions necessary to acquire all land and rights in respect thereto for carrying out
the Project by 31st December 2012.
5.3 Compliance with Bank Policies
The objectives of the project are consistent with the Bank’s Medium Term Strategy (2008-
2012), particularly through the project’s emphasis on higher education, science and
technology, capacity building and skills development. Furthermore, the project complies with
the relevant provisions of the Bank’s Strategy for Higher Education, Science and
Technology; the Gender Equality and Women’s Empowerment: Updated Action Plan (2009-
2011); and the Environmental and Social Safeguards Policy.
6 – RECOMMENDATION
Management recommends that the Board of Directors approve: (a) the proposed ADF loan of
UA 9.05 million, an ADF grant of UA 10.95 million, and an NTF loan of UA 6.50 million to
the Government of the Republic of Malawi for the project and subject to the conditions
stipulated in this report; and (b) in accordance with Article 17 (1) (d) of the Bank Agreement,
the waiver of the rule of origin in connection with procurement of goods, works and services
financed with the NTF loan to allow such procurement to be undertaken in accordance with
ADF universal procurement which permits procurement in non-member countries. The
federal Government of Nigeria has already approved the requested amount for the Nigerian
Trust Fund (NTF) for the same project.
Appendix I: Malawi Comparative Socio-Economic Indicators
1990 2010 *
Area ( '000 Km²) 30,323 80,976
Total Population (millions) 9.5 15.7 1,031.5 5,658.7
Population growth (annual %) 3.8 2.8 2.3 1.3
Life expectancy at birth, total (years) 49.3 54.6 56.0 67.1
Mortality rate, infant (per 1,000 live births) 135.6 78.4 78.6 46.9
Physicians per 100,000 People 2.0 2.0 58.3 109.5
Births attended by skilled health staff (% of total) … 53.6 50.2 64.1
Immunization, measles (% of children ages 12-23 months) 81.0 92.0 71.1 80.7
School enrollment, primary (% gross) 70.1 119.3 102.7 107.2
Ratio of girls to boys in primary education (%) 86.7 102.9 91.7 96.2
Literacy rate, adult total (% of people ages 15 and above) … 72.8 64.8 80.3
Access to Safe Water (% of Population) 41.0 80.0 64.5 84.3
Access to Sanitation (% of Population) 46.0 56.0 41.0 53.6
Human Develop. (HDI) Rank (Over 169 Countries) … 153 n.a n.a
Human Poverty Index (% of Population) … 28.2 … …
Economy 2000 2008 2009 2010
GNI per capita, Atlas method (current US$) 150 260 280 …
GDP (current Million US$) 1,744 4,056 4,708 5,384
GDP growth (annual %) 0.8 8.6 7.6 6.7
Per capita GDP growth (annual %) -2.4 5.7 4.7 3.9
Gross Domestic Investment (% of GDP) 13.6 26.3 26.3 28.3
Inflation (annual %) 29.6 8.7 8.4 7.7
Budget surplus/deficit (% of GDP) -5.6 -2.7 -3.6 -1.1
Trade, External Debt & Financial Flows 2000 2008 2009 2010
Export Growth, volume (%) -6.6 -1.4 2.3 14.1
Import Growth, volume (%) -21.3 15.5 11.5 -4.1
Terms of Trade (% change from previous year) -9.5 49.3 7.6 -9.0
Trade Balance ( mn US$) -140 -754 -805 -843
Trade balance (% of GDP) -8.0 -18.6 -17.1 -15.7
Current Account ( mn US$) -92 -12 -101 61
Current Account (% of GDP) -5.3 -0.3 -2.1 1.1
Debt Service (% of Exports) 19.9 1.2 1.2 0.9
External Debt (% of GDP) 153.4 16.8 19.1 18.8
Net Total Inflows ( mn US$) 431.1 932.8 798.5 …
Net Total Official Development Assistance (mn US$) 446.1 923.7 772.4 …
Foreign Direct Investment Inflows (mn US$) 39.6 170.0 60.4 …
External reserves (in month of imports) 3.1 0.9 0.7 0.9
Private Sector Development & Infrastructure 2000 2005 2009 2010
Time required to start a business (days) … 37 39 39
Investor Protection Index (0-10) … 5.3 5.3 5.3
Main Telephone Lines (per 1000 people) 3.9 7.5 11.8 11.8
Mobile Cellular Subscribers (per 1000 people) 4.1 30.8 120.0 120.0
Internet users (000) 1.3 3.8 21.3 21.3
Roads, paved (% of total roads) 16.4 22.0 25.0 25.0
Railways, goods transported (million ton-km) 87 … … …
* Most recent year Last Update: May 2011
Malawi - Development Indicators
Developing
countries
Source: ADB Statistics Department, based on various national and international sources
MalawiAfricaSocial Indicators
118
Malawi
Appendix II: Bank Group Operations in Malawi
Sectors/Operations Approval
Date
Funding
Type
Approved
Amount
(UA m)
Disbursement
(UA m)
Disburse-
ment Rate
Current
Performance
Rating
Age
AGRICULTURE SECTOR
1
Smallholder Crop Production &
Marketing
ADF Loan 26/07/06 Loan 15.0 9.00 60.0% 2.31 5.2
2 Agriculture Infrastructure Support
ADF Loan 09/09/09 Loan 15.0 1.31 8.7% 2.15 2.1
SOCIAL SECTOR
3
Support to the Health Sector
Project
ADF Loan 24/11/05 Loan 15.0 11.33 75.5% 2.36 5.9
4 Support to Secondary Education V
ADF Loan 07/06/06 Loan 15.0 11.21 74.7% 2.00 5.3
5 Support to Local Economic Development
ADF Loan 24/09/08 Loan 14.0 0.68 4.8% 2.11 3.0
6 Supplementary Loan Local Economic Development
ADF Loan 09/12/10 Loan 3.2 0.00 0.0% - 0.8
WATER & SANITATION
SECTOR
7
National Water Development
Program
ADF Loan 02/07/08 Loan 15.2 3.79 24.9% 2.25 3.3
ADF Grant Grant 10.7 0.73 6.8%
RWSS Trust Fund RWSSI 3.4 1.22 36.2%
8 Access to Water & Sanitation for Urban Poor 28/12/09 AWF 0.6 0.20 35.1% 2.31 1.8
9
Strengthening Water Sector M&E
in Malawi 28/01/10 AWF 1.7 0.68 38.8% - 1.7
10 Songwe River Basin Development 25/05/10 AWF 3.12 0.00 0.0% - 1.4
TRANSPORT SECTOR
11
Trunk Road Rehabilitation
Blantyre-Zomba (Loan) 22/05/09 Loan 23.0 0.00
0.0% 1.56
2.4
Ntcheu-Tsangano-Mwanza
Feasibility Study (Grant) Grant 1.1 0.04
3.3%
12
Multinational: Nacala Road
Corridor
ADF Loan 24/06/09 Loan 14.3 0.09 0.6% 2.10 2.3
TOTAL 164.6 40.3 24.5%
Total Loan 144.0 37.5 26.0%
Total Grant 20.7 2.9 13.8%
Appendix III: Main Related Projects Financed by the Bank and other Development
Partners in Malawi
DONOR PROJECT
TITLE Amount INTERVENTION AREAS
World
Bank
Business
Environment
Technical
Assistance Project
USD 18.7
Million
Co-financed by the EU. Aims to strengthen investment climate
reforms through support to private property rights institutions, PSD
support institutions as well as promotion of access to finance through
a matching grants scheme.
Financial Sector
Technical
Assistance Project
USD 28.2
Million
The project supports; (a) financial sector regulation and supervision
capacity building; (b) financial infrastructure; (c) financial consumer
protection and financial literacy; (d) capacity building of Ministry of
Finance’s financial sector policy unit including capacity to formulate
policies which support long term financing; and (e) administrative
costs for the multi-donor Financial Sector Deepening Trust.
Mining
Governance and
Growth Support
Project
USD 24.5
Million
project so-financed by the EU and supports actives that (a) support
government build an efficient, transparent and environmentally and
socially sustainable framework for managing mineral rights and
operations; (b) support the GoM develop transparent arrangements
for optimal generation and use of mineral revenues; and support the
GoM improve the enabling environment for mining sector
development by acquiring and disseminating geo-data, foster more
sustainable artisanal and small scale mining, increase the supply of
Malawians trained at tertiary level in minerals and improve the
policy environment for mining-related infrastructure development.
USAID
Developing Credit
Authority (DCA)
USD 13
Million
A USAID guarantee intended to strengthen partner banks’ ability to
finance loans to MSMEs in Malawi’s agriculture and agriculturally
linked business sectors. USAID shares 50% percent of a guaranteed
bank’s net losses of principal with respect to qualifying loans. Loans
up to $20,000. Partners: Standard Bank, OIBM and IndeBank
Market Linkages
Initiative (MLI)
USD 4
Million
MLI supports innovative solutions to increase smallholder producers’
linkages to markets and increase the variety of sale options. The
project provides grant funding to small and medium sized traders,
farmer associations, large traders/processors and the Agricultural
Commodity Exchange (ACE).
EU
Capacity Building
for Trade and
Private Sector
Development
EURO 10.95
Million
The overall objective of the project is to reduce poverty in Malawi
through the promotion of exports and the diversification of the
economy, including the mineral sector.
Components:
Trade & Statistics Information Systems - € 3 M (Technical
Assistance + Project Estimate with NSO)
SQAM Infrastructure Development - € 3.8 M (Contribution
Agreement with UNDP)
Mining Sector Development - € 4.15 M (Administrative Agreement
with WB)
Senior Trade and
Private Sector
Development
Advisor
EURO
200,000
To assist Ministry of Industry and Trade and related public sector
institutions involved in trade and private sector development policy
formulation and implementation and put in place appropriate
industrial, trade and invest policy implementation and monitoring
frameworks that will contribute to GoM main vision statement.
UNDP Growing USD 1.4
Million
The project is engaged in pro-poor business models which links
companies with the poor such as smallholder farmers and women
DONOR PROJECT
TITLE Amount INTERVENTION AREAS
Sustainable
Business (GSB)
groups
Integrated Youth
Development
Project (IYDP)
USD 1.05
Million
The project focuses on youth entrepreneurship development and the
development of National Employment Policy.
Financial
Inclusion in
Malawi (FIMA)
USD 6.2
Million The project focuses on building capacity of MFIs
Pilot to test methods to support expansion of inclusive businesses,
mostly through technical assistance to firms/NGOs. Delivered
through an implementing agency – Imani Development DfID
Business
Innovation
Facility
USD 1.6
Million
Low-energy
lightbulbs
USD 4.8
Million
Replacing existing lightbulbs across Malawi with low-energy bulbs
to reduce electricity demand. Delivered with ESCOM and Ministry
of Natural Resources, Energy, and Environment.
AfDB
Support to Local
Economic
Development
(LED) Project
UA 18.66
Million
The main objective of the project is to improve the socio-economic
wellbeing of the rural population through strengthening of economic
activities in 4 rural growth centres located in 4 districts across the
country.
Appendix IV: Map of the Republic of Malawi showing Project Sites
Disclaimer
This map was provided by the African Development Bank exclusively for the use of the readers of the report to which it
is attached. The names used and the borders shown do not imply on the part of the Bank and its members any judgment
concerning the legal status of a territory nor any approval or acceptance of these borders.
Chancellor College in Zomba
Lilongwe TC
Polytechnic in Blantyre
Salima TC
Nasawa TC
Soche TC
Mzuzu University
Appendix V: Nigerian Trust Fund Approval for Malawi Project
Appendix VI: Procurement Arrangements for the Project Project Categories [ in millions UA]
ICB NCB Other* Short List Non-
Bank-
Funded
Total
1. Civil Works
1.1 Mzuzu University 1.64 (1.51) 1.64 (1.51) 1.2 Salima and Lilongw TC 1.88 (1.73) 1.88 (1.73)
1.3 Nasawa TC, Soche TC, 5.12 (4.70) 5.12 (4.70)
The Polytechnic, Chancellor
Sub-Total 8.64 (7.94)
2. Goods
2.1 ICT equipment 4.04 (0.34) 4.04 (0.34)
2.2 ICT interconnectivity 0.77 (0.06) 0.77 (0.06)
2.3 Incr Access to online Information 0.92 (0.08) 0.92 (0.08)
2.4 Audio-visual and repro equipment 0.77 (0.07) 0.77 (0.07)
2.5 Subscriptions e-library 0.19 (0.02) 0.19 (0.02)
2.6 Equipment./learning materials/books 2.36 (2.36) 2.36 (2.36)
2.7 Furniture 0.68 0.68 (0.00)
2.8 Generators 0.07 (0.07) 0.07 (0.07)
2.9 MIS, LMIMS, CAATS, EIMU 0.31 (0.31) 0.31 (0.31)
2.10 Vehicle 0.18 (0.18) 0.18 (0.18)
2.11 Computers for Project Management 0.02 (0.02) 0.02 (0.02)
Sub-Total 10.32 (3.51)
3. Consulting Services
3.1 Construction Design and Supervision 1.05 (1.05) 1.05 (1.05)
3.2 ICT related services 0.40 (0.03) 0.40 (0.03)
3.3 Curricula Review 0.90 (0.90) 0.90 (0.90)
3.4 Evaluation studies 0.39 (0.39) 0.39 (0.39)
3.5 Project Audit 0.05 (0.05) 0.05 (0.05)
Sub-Total 2.80 (2.43)
4. Training
4.1 Staff Training (PhD, Mast., other) 2.49 (2.49) 2.49 (2.49)
4.2 Capacity CAATS 0.01 (0.01) 0.01 (0.01)
Sub-Total 2.50 (2.50)
5. Miscellaneous
5.1 Scholarship and Bridging 3.44 (2.30) 3.44 (2.30)
5.4 Other M&E Systems 0.18 (0.18) 0.18 (0.18)
Sub-Total 3.62 (2.48)
6. Operating Costs 1.56 (1.14) 1.56 (1.14)
TOTAL 17.82 (11.16) 0.28 (0.28) 7.87 (6.13) 2.80 (2.43) 0.68 29.45 (20.00)
* Other: Shopping, CQS, short list of national/regional training institutions and use of approved Government procedures.
Underlined figures: Amounts financed or co-financed by the GoM; Italic figures: Amounts co-financed by NTF
