Language: English Original: English AFRICAN DEVELOPMENT FUND PROJECT: Support to Higher Education, Science and Technology (HEST) Project COUNTRY: Republic of Uganda PROJECT APPRAISAL REPORT September 2012 Appraisal Team Team Leader : Mr. Jason Mochache, Chief Education Specialist, OSHD 2/UGFO Team Members : Mr. David Engwau, Senior Procurement Officer, UGFO Mrs. Juliet Byaruhanga, Senior Private Sector Officer, UGFO Mr. David Mutuku, Principal Financial Management Specialist, EARC Mr. Steven Onen, Principal Legal Counsel, GECL.1/EARC Mr. Ashraf Ayad, Principal Procurement Officer, ORPF.1 Mr. Stijn Broecke, Young Professional, EDRE Mr. Kwasi Agyeman, Infrastructure and Costing Consultant, OSHD.2 Mr. Stephano Ole-Teveli, ICT Consultant, OSHD.2 Sector Manager: Mr. Boukary Savadogo, Manager, OSHD.2 Sector Director: Mrs. Agnes Soucat, Director, OSHD Regional Director: Mr. Gabriel Negatu, EARC Peer Reviewers Mr. E. Porgo, Lead Education Specialist, OSHD Mr. C. M. Guedegbe, Chief Education Analyst, OSHD.2 Mr. S. Jack, Chief ICT Engineer, ICT4D Mr. Baba Imoru Abdulai, Principal Procurment Specialist, OSHD.0 Mr. Benedict Kunene, Principal Education Specialist, OSHD.2 Mr. Joseph Muvawala, Chief Education Economist, OSHD.2 Ms. Peninah Kariuki, Chief Country Economist, UGFO
Transcript
Language: English
Original: English
AFRICAN DEVELOPMENT FUND
PROJECT: Support to Higher Education, Science and
Technology (HEST) Project
COUNTRY: Republic of Uganda
PROJECT APPRAISAL REPORT
September 2012
Appraisal Team
Team Leader : Mr. Jason Mochache, Chief Education Specialist, OSHD 2/UGFO
Team Members : Mr. David Engwau, Senior Procurement Officer, UGFO
Table 2.2: Summary of Reasons for Rejection of the Alternatives Considered………. 6
Table 2.3: Summary of Project Cost by Component………………………………….. 7
Table 2.4: Sources of Finance …………………………………………........................ 8
Table 2.5: Sources of Finance and Category of Expenditure ………………………… 8
Table 2.6: Expenditure Schedule by Component …………………………………….. 8
Table 2.7: Summary of Project Costs by Category of Expenditure ………………….. 8
Table 4.1: Risks and Risks and Mitigation Measures ………………………………… 19
FIGURES
Figure 1.1: Uganda Public Universities’ Capital Development Funding, 2007–2011... 2
Figure 1.2: Employment Sectors for Graduates……………...………………………... 3
Currency Equivalents
As at Appraisal in May 2012
1 UA = UGX 3901
1 USD = UGX 2516
1 UA = USD 1.55
Fiscal Year
1 July – 30 June
Weights and Measurements
1 metric tonne = 2,204 pounds (lbs)
1 kilogram (kg) = 2.200 lbs
1 meter (m) = 3.28 feet (ft)
1 millimeter (mm) = 0.03937 inch (“)
1 kilometer (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
ii
Acronyms and Abbreviations
ADF African Development Fund
BTC Belgium Development Corporation
BTVET Business, Technical and Vocational Education and Training
BU Busitema University
CIAT Centro Internacional de Agricultura Tropical
DHTVET Directorate of Higher, Technical and Vocational Education and Training
EDP Education Development Partner
EPPAD Education Planning and Policy Analysis Department
ESMP Environmental and Social Management Plan
ESR Education Sector Review
ESSP Education Sector Strategic Plan
GCI Universities Global Competitive Indicators
GDP Gross domestic product
GNI Gross national income
GoU Government of Uganda
GU Gulu University
HE Higher education
HEI Higher education institutions
HESP Higher Education Strategic Plan
HEST Higher education, science and technology
ICT Information and communication technology
ISP Internet service provider
ITEK Institute of Technical Education Kyambogo
KYU Kyambogo University
M&E Monitoring and evaluation
MoES Ministry of Education and Sports
MoU Memorandum of Understanding
MTR Mid-Term Review
MU Muni University
MUBS Makerere University Business School
MUK Makerere University
MUST Mbarara University of Science and Technology
NCB National Competitive Bidding
NCHE National Council for Higher Education
NDP National Development Plan 2010/2011–2014/2015
NEMA National Environment Management Agency
PCR Project Completion Reports
PCU Project Coordination Unit
PSC Project Steering Committee
PSFU Private Sector Foundation of Uganda
QPR Quarterly Progress Report
SIDA/SAREC Swedish International Development Cooperation Agency/Department for Research
Corporation
STI Science, technology and innovation
TIs Target institutions (MUK, KYU, MUST, BU, GU, MU, MUBS and UMI)
UBOS Uganda Bureau of Statistics
UGFO Uganda Field Office of the African Development Bank
UMA Uganda Manufacturer’s Association
UMI Uganda Management Institute
UNCST Uganda National Council for Science and Technology
UPK Uganda Polytechnic Kyambogo
UPPET Universal Post Primary Education and Training
USE Universal Secondary Education
iii
Loan Information
Client’s information
BORROWER: Republic of Uganda
EXECUTING AGENCY: Ministry of Education and Sports
Financing Plan
Source Amount (UA) Instrument
ADF
ADF
66.70 million
0.30 million
Loan
Loan (Resources
coming from
cancelled resources)
Government of Uganda
and Beneficiary Institutions
7.44 million Counterpart Funds
TOTAL COST 74.44 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
Timeframe—Main Milestones (expected)
Concept Note Approval
23 March 2012
Appraisal Mission April-May 2012
Project Approval November 2012
Signing December 2012
Effectiveness March 2013
Completion June 2017
Last Disbursement June 2018
iv
PROJECT SUMMARY
Project overview. The Support to Higher Education, Science and Technology (HEST)
Project aims to contribute to building Uganda’s human capital skills development
capacity—particularly in education, science and technology—to respond to labor market
demands and spur productivity nationally. Its objective is to improve equitable access,
quality and relevance of skills training and research leading to job creation and self-
employment. It involves the active participation of six public universities and two degree-
awarding tertiary institutions in skills training, at the various levels of higher learning. The
strategic outcomes of the project are access to HEST and information and communication
technology (ICT) for delivery of HEST and improved quality and relevance of HEST in target
public universities and degree-awarding tertiary institutions, leading to stronger links to the
productive sector. The project is aligned to the country’s National Development Plan
2010/2011–2014/2015 that aims at making Uganda an industrialized economy in 2025 through
the provision of higher level skills. The total cost of the project is UA 74.44 million, and it will
be implemented over a five-year period.
Needs assessment. Uganda’s competitiveness in Science, Technology and Innovation
(STI) is among the weakest in the East Africa region. The problem stems from the
weaknesses in the training of STI capacity. Higher level skills training is mainly done in
public universities that are facing major shortfalls such as poor infrastructure and equipment,
insufficient qualified staff and inadequate research capacities. Nationally, enrollment in STI
programs is below 30%, against an estimated minimum of 40% to have impact in
development. Access to higher education (HE) for STI is inadequate, yet the numbers of
those who qualify have been growing as a result of improvements in basic and secondary
education. Funding to HE by the Government of Uganda averaged 10%–12% of the
education budget over the last five years, against requests of at least 20%. The Bank’s
support will enable all the six Ugandan public universities and two strategic tertiary
institutions to improve their quantity and quality of STI outputs.
Bank’s added value. The Bank has a unique experience and leverage to assist Uganda in
expanding and reorienting its HEST institutions to respond to skills development needs. The previous four education operations financed by the Bank have focused on basic,
secondary and business, technical, and vocational education and training. The project is
aligned to the Bank’s HEST Strategy (2008), the Medium Term Strategy (2008–2012), the
upcoming Human Capital Development Strategy and the Long Term Strategy (2013–2022).
Assistance from other Education Development Partners to HEST, targeting scholarships and
research, does not fully meet the needs in HE and training. The Bank’s assistance in this
sector will assist the government at this critical time in its development path, as the
investment in HEST will trigger quality in learning and job creation locally and
internationally.
Knowledge management. The project will facilitate the creation of quality and relevant
skills and knowledge required by the job market. It will fund the increased use of e-
learning in a number of courses in the beneficiary institutions. The key interventions that will
generate knowledge will include tracer studies in the job market and evaluation research
intended to measure outcomes in the use of ICT through e-learning compared with traditional
training approaches alone. The project will also fund the development of libraries, thus
enhancing learning and research.
v
Results-based Logical Framework
Country and Project Name: UGANDA – Support to Higher Education, Science and Technology (HEST) Project.
Purpose of the Project: To contribute to building Uganda’s human capital through HEST and skills development to respond to the labor market demands and spur productivity.
Project Objective: To improve equitable access, quality and relevance of skills training and research leading to job creation and self-employment.
RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF VERIFICATION RISKS /MITIGATION MEASURES
Indicator (including CSI) Baseline (2010) Target (2018) IM
PA
CT
Improved HE
system to provide
adequate quality
human capital
required for
national
development
1. % annual increase in those
accessing HEST in the country
2. Share of people with high-level
skills in the labor force (%)
3. Increase in GDP per capita
34.1%
1.8%
USD 606
44.1% across HEST indicators
3.6%
USD 669
M&E reports
Baseline and impact studies
UBOS abstracts
OU
TC
OM
ES
1. Increased access
to HEST and ICT
for delivery of
HEST
1a. People accessing equitable STI
training at the university/tertiary
levels
1b STI enrollment in full virtual
degrees in HEIs
36,000 (44%) in
FY2010/11
Zero
71,000 (at least 50% women)
12,000 (at least 40% women)
Annual project M&E reports
NCHE annual database
PCR and impact studies NCHE
annual reports
Risks:
1. HEIs may not sustainably maintain the expanded training
facilities
2. All HEIs may not be able to raise their counterpart contribution
of 4% on time
Mitigation Measures
1a. MoES budget to HE to be increased beyond the current 10%
and at least 0.6% of this will be allocated for maintenance
1b. HEIs to use business production centers to generate alternative
sources of finance to augment GoU funding on maintenance
2. GoU capital subventions to the HEIs to be used as the project
would provide funds for major capital improvements
2. Improved quality,
efficiency and
relevance of HEST
in target public
universities and
degree-awarding
tertiary institutions
2a. Ratio of researchers per members
of the workforce
2b. % of HEST students that
successfully graduate
2c. Number of public universities
ranked between 10 and 12 in Africa
in GCI ratings
1 researcher per 1000
members of the
workforce.
9.2%
Only MUK is ranked
12th in Africa in GCI
rating in 2011
1.5 researchers per 1000.
17% (at least 40% women).
6 public universities ranked in
GCI (at least 1 below 10th
position)
Annual M&E reports
NCHE database and annual
reports
Project QPRs
PCR and impact surveys
GCI ratings
Component I:
Improving and
expanding HEST
in six public
universities and
two degree-
awarding tertiary
institutions
1. Area of STI faculties expanded,
improved and equipped in the 8 TIs
2. Campus intake capacity in STI
faculties in all the TIs
3. Number of TIs running a full e-
learning degree program
4. Number of gifted students
supported to study STI programs
5. Number of TIs supported to
enhance HIV-AIDS sensitisation
initiatives
Zero
36,000
Zero
Zero
1 of 8
80,000 m2 rehabilitated/ built
and equipped
71,000 (at least 40%) women
At least 3 TIs running full e-
learning degree programs
At least 95–160 students
supported (40% being women)
7 TIs
Project QPRs, supervisions and
audit reports
MTR report
NCHE annual reports
Annual ESR reports
NCHE annual reports and QPRs
of the HEST
Risk
Limited broadband connectivity in TIs leading to weak and costly
Internet services for e-learning
Mitigation Measure
GoU to speed up implementation of the national broadband
backbone to extend the fiber-optic access to TIs and negotiate
with the ISPs concessionary bandwidth rates for HEST institutions
through incentive packages
OU
TP
UT
S Component II:
Building capacity in
public HEST
institutions
1. Number of STI academic staff
trained at masters and PhD degrees in
HEST in the TIs
2. Number of TI staff and MoES HE
management staff trained in strategic
management areas, maintenance and
governance,
1,800 (maters and
PhD in all TIs)
30% in TIs and 0 in
MoES HE
1,880 (64 at PhD and 16 at
masters level; 40% women for
both groups)
35% for TIs and 10% for
MoES HE (40% women for
both groups)
TIs’ staff compliment
assessment reports
QPRs and supervision reports
PCR
Risk
Weak retention of trained staff due to unfavorable remunerations
Mitigation Measure
GoU and TIs are reprioritizing regular review of engagement
conditions for staff, especially in STI
vi
Component III:
Improving quality
and relevance of
HEST in public
institutions
1. Number of new STI research
programs initiated/enhanced in
strategic sectors funded by NCHE
2. Number of specialized research
labs/innovation workshops
developed/improved to carry out
scientific research.
3. Number of major STI programs
linked to the labor market
3
One viral research
lab funded by Pfizer
exists in MUK
Zero
At least 5 (one on
entrepreneurship).
4 research labs established
(one each at MUK, KYU,
MUST and GU)
.
5 (one for each major STI
program)
QPRs and NCHE annual reports
PCR
NCHE annual reports
Ministry of Gender and Labour
ongoing labor survey report
Revised HESP to 2020 produced
by December 31, 2015
Risk
Research/innovation networks established may not be sustained
Mitigation Measures
a. Strong links with industry and other world class institutions
required so as to generate research and innovation sponsorships
b. Production centers in institutions to create income generating
activities for sustainability
Component IV:
Project
coordination
1. Existence of strategic plans with
proposals for 8 year’s work plans in
each of the TIs
2. Existence of STI a specific staff
development plan in each of the 8 TIs
3. Efficient project management team
in place
All the 8 TIs have
strategic plans with 5
years’ work plans
Zero
None
Strategic plans with 8 years’
annual work plans for all the
TI’s
.
One in each TI
1 in MOES and 1 in each TI
Work plans in TIs
.
QPRs
MTR report
Audit reports
Staff training reports
KE
Y A
CT
IVIT
IES
Component I: Improving and expanding HEST in six public universities and two degree-awarding tertiary institutions (UA 60.82 million)
(i) Infrastructure construction (lecture rooms, labs, technology workshops, ICT labs, libraries with virtual capabilities, external civil works and utilities
expansion)
(ii) Equipment procurement, installation and operation and maintenance training including for laboratory technology, agriculture mechanization and learning
equipment
(iii) ICT infrastructure, equipment, e-learning programs for the TIs, software and training
Component II: Building capacity in public HEST institutions (UA 6.50 million)
(i) 80 academic staff trained at the masters and PhD level, 24 management staff training and retraining at least 40% being women those with special needs
(ii) Scholarships offered for 95–160 gifted poor students to study STI in the TIs
(iii) NCHE capacity improvement in university enrollment data and quality assurance management and tracer studies preparation
Component III: Improving quality and relevance of HEST in public institutions (UA 5.15 million)
(i) Review of Higher Education Strategic Plan (HESP) and two evaluation research studies
(ii) Business incubator centers established in TIs, and networks set up with support of PSFU
(iii) Research network established with CIAT and other institutions and 10 research publications completed
(iv) Practical training of students in industry through
(v) Initiatives for linking major STI programs with the labor market
(a) This component will expand equitable access to science and technology training and research. It will also
enhance access to HEST through rehabilitation and expansion of STI learning facilities totaling 80,000m2 in six
universities (MUK, KYU, MUST, GU, BU and MU) and two degree-awarding institutions (UMI and MUBS). The
facilities to be addressed are laboratories, lecture spaces, technology workshops, e-learning centers, virtualized
libraries, faculty offices and business incubator/production units.
(b) The rehabilitated/expanded facilities will be equipped to optimum performance in their functions.
Improvement of ICT connectivity and equipment leading to increased access and quality of training in these programs
will be supported for an additional 35,000 students. The project will support 475 scholarship years of UGX 10.0
million each amounting to a total of UA 1.20 million for students to participate in strategic areas of STI at the
undergraduate or postgraduate level and those with special needs. In both cases, 40% of the beneficiaries will be
women. The scholarships will be divided equally to all the eight participating institutions and will be tenable in the
project institutions and would benefit 95–160 students studying in the TIs with 20% being at the postgraduate level.
(c) ICT broadband backbone and networks together with relevant equipment will also be supported to widen
learning methods through e-learning options. STI departments will be equipped with ICT laboratories that enhance
learning beyond the campus. Under e-learning, partnerships will be enhanced with various leaders in this line. The
project would encourage blended teaching and learning, use of Moodle3 and “cloud computing,” which reduce cost of
ICT infrastructure per site.
(d) The component will also support the creation of utility networks and their storage, such as power supply and
the stabilization/alternatives needed to attain stable learning. Environmental management—which includes fire
protection, adequate water and sanitation, waste handling and “greening” of the critical learning system—are also
addressed.
(e) The design and construction of the facilities will ensure the coverage of gender and HIV/AIDS activities.
Those for special needs groups will also be supported to enhance participation of women, as well all the other
vulnerable groups to access STI programs in the universities.
Component II:
Building capacity
in public HEST
institutions
(UA 6.50 million)
The component will support postgraduate training and specialized skills of HEST faculty staff in the TIs.
(a) Training at the local and regional levels will focus on STI staff and critical areas of institutional management,
entrepreneurship, governance, public-private partnership development models, maintenance and sustainability. Training
will constitute 80 scholarships for STI teaching and research staff and 24 for institutional management staff, at least
40% will be dedicated to women and persons with special needs.
(b) The capacity of the Ministry of Education’s Higher Education Department and the NCHE will be supported to
handle tertiary education data and tracer studies of graduates. One staff scholarship for capacity in monitoring, and data
management skills will be supported and one technical assistance for ICT/data management for 60 months. ICT
equipment to provide a suitable database will also be funded.
Component III:
Improving quality
and relevance of
HEST in public
institutions
(UA 5.15 million)
The component will strengthen applied research and innovation in STI and improve the relevance of HEST.
(a) It will finance the initiation of at least five new STI programs with one being entrepreneurship and the review
of the current HESP 2003–2015 to new HESP 2015–2020. As part of the review, two studies preceding and informing
the HESP will be undertaken. The studies will include an impact evaluation on various forms of e-learning and how it
can be used to harness higher efficiency in HEST. The other study will focus on the use of enrollment and completion
databases in various STI programs to project the impact of HEST in national development.
(b) The component will also support the establishment of relevant networks and partnerships with the productive
sector, especially in the industry sector, and other worldwide institutions of excellence in their fields. The project will
support the establishment of appropriate structures in the TIs for enhancement of production/business incubation
centers emerging from research and technology innovations. Eight entrepreneurship incubator centers will be
established. Partnership with the Private Sector Foundation of Uganda would be established through a Memorandum
of Understanding (MoU) to support the activities and establish links with relevant industries/private sector.
(c) Interuniversity links and links with centers of excellence in applied research will be supported. Through a
MoU, links between CIAT at Kawanda and MUK and GU will be undertaken. The links will be established and
strengthened to enable the institutions to carry out research on tropical agriculture beyond the normal learning process
and to multiply research outputs in industry. At least 10 postgraduate scholarships will be supported for relevant
research to be undertaken through this link in a five-year period. An estimated 10 STI publications will also be
supported in five years.
(d) The subcomponent will also support practical training/supervision of students in industry through a well-
designed internship program for at least five STI programs. A MoU will be signed between the Uganda
Manufacturers’ Association and the MoES to support the placement of students in industry for the internship program.
An estimated 2,000 students will benefit from the internship in the five years.
Component IV:
Project
management and
coordination
(UA 1.97 million)
This component will finance the formulation of strategic plans with proposals for eight years’ work plans and STI-specific staff
development plan in each of the TIs and project management and coordination. The project management activities will include,
among other items, coordination needed for implementing the overall project, audit, and M&E. It will support gender, HIV, and special needs person’s activities, and the student scholarships and ICT activities coordination. Technical assistance for project
management and the Project Steering Committee activities would also be supported. Capacity development of the MoES staff
responsible for the project implementation and the recruited technical assistants would also be supported.
3 Moodle is a free easy to install, open-source web application for producing modular Internet-based courses that support a modern social constructionist pedagogy. It is a course management system, also known as a learning management system or a virtual learning
environment. While copyrighted, Moodle can be copied and modified to suit the virtual learning environment desired, provided the user also
agrees to provide the source to others to use. Virtual universities like the African Virtual University and the Virtual University of Uganda are using the same format.
“Cloud computing” refers to ICT technology that uses the Internet and central remote servers to maintain data and applications and convert
print-based content to digital media.
6
2.2 Technical solution retained and other alternatives explored
2.2.1 The project considers a combination of improving physical infrastructure and
ICT systems use as a means of expanding access and inclusiveness in higher education. This is a departure from the traditional institution-based training that excludes many
vulnerable groups in the community (youths, women, retirees and persons with disabilities).
It stresses expanding scientific, technology and library facilities and the use of ICT (through
e-learning and virtual libraries) as efficient technical solutions to offer training at the
university level. The blended model of in-class training and distance learning through e-
methods is emphasized because not all high school leavers in Uganda would be proficient in
the use of ICT to be able to take on e-learning approaches alone as they join university.
Strong focus on ICT-based learning through all the programs will result in STI graduates who
are compliant with the future work environment that extends beyond the reachable
geographical zones as more and more enterprises migrate to the worldwide web,4 where they
are accessible through ICT networks.
2.2.2 The project will support programs that are strategic in areas where the country
has a comparative advantage. Agriculture, mining and oil production, entrepreneurship,
manufacturing and processing, technical and science education, applied nutrition, information
technology and health care are targeted in this operation. Uganda seeks to become
industrialized by 2025, which requires retargeting its development of human capital.
2.2.3 The project also emphasizes the model where universities develop their business
incubator/production units. This will spur income generation for the institutions through
business creation as well as impart the requisite skills to trainees. In this regard, private
partnerships would be encouraged to support the business incubator activities, and also in
curricula design to make programs at HEIs responsive to business thinking. The MoES will
negotiate Memorandums of Understanding (MoUs) with the Uganda Manufacturer’s
Association (UMA) and the Private Sector Foundation of Uganda (PSFU) to support the
industrial links and incubator/production units at the Tis, respectively. Another MoU with
Centre for Tropical Research in Agriculture (CIAT) will provide research extension in
agriculture. (Technical Annexes C8 and C9 provide details of the activities to be supported
by UMA, PSFU and CIAT.)
2.2.4 The project introduces evaluation research intended to measure outcomes in the
use of e-learning compared with traditional training approaches alone. It will use
available statistical data on education enrollment, completion and employability of graduates
to assess the impact of higher education in the country’s development. Table 2.2 summarizes
the alternatives considered and reasons for their rejection.
4 Often referred to as the “cloud,” as the businesses are not necessarily physically located in the employee’s location but are accessible
through the Internet systems.
7
Table 2.2: Summary of Reasons for Rejection of the Alternatives Considered Alternative Brief description Reasons for rejection
Providing
knowledge through
e-learning options
alone
The approach would provide quality
and relevant education through e-
learning thus reducing the need for
expanding infrastructure for
physical space
This approach was not preferred because of the poor
physical infrastructure in the HEST institutions and the
weak institutional capacities and competencies in ICT in the
country. E-learning will be developed gradually as the ICT
infrastructure and competences needed are being
progressively built up
Investing the ADF
funds through a
Sector Budget
Support method
This would involve putting the
funding into a Sector Pool and leave
project management activities into
the mainstream operations of the
benefiting institutions
This approach was found inappropriate as only three
institutions had capacity in financial management and
procurement. It was found easier to improve capacity at the
MoES for project management than undertaking this in all
the eight TIs
Supporting both
private sector and
public universities
with this funding
The approach would mean that the
ADF funding will support both
public and private universities in the
country
Currently 95% of all STI programs are in public
universities. The 27 private universities host about 5% of
STI activities, so there is value for money in investing the
HEST funds in the public institutions
2.3 Project type
This project is an investment operation designed to increase access and improve
the quality and relevance of higher education in Uganda. The ESSP 2007–2015 places a
strong emphasis on basic, secondary and postsecondary training, where the AfDB has
participated in Education I, II, III and IV projects. This project focuses on HEST where
development partners’ interventions have been limited. It will spearhead funding of HEST
through the normal ministerial budget arrangement as a project system. The project approach
would guarantee that the funds are targeted to the areas identified by the government. As this
funding will also support the review of the HESP to 2020, to make STI programs prominent,
it will spur further interventions into the HEST sector either through other projects or sector
budget support.
2.4 Project cost and financing arrangements
2.4.1 The total cost of the project, net of taxes and customs duties is estimated at
UA 74.44 million. An amount of UA 56.56 million is in foreign exchange and the balance of
UA 17.88 million is in local currency.5 The project costs are based on MoES estimates, using
the latest available tenders in the TIs. A physical contingency of 5% is included in project
costs for all categories of expenditure. Price contingencies of 8% are estimated based on an
annual 6.5% inflation rate for local and foreign exchange costs. Given that project costs were
estimated in USD, these contingencies provision are considered adequate. A summary of cost
estimates is presented in tables 2.3–2.7.
Table 2.3: Summary of Project Costs by Component (UA million)
COMPONENTS UA million % total % F.E.
F.E. L.C. Total costs
I. Improving access in HEST in six public universities and two
TOTAL 56.56 10.44 67.00 90.0% 7.44 10.0% 74.44 100.0% 76.0%
Table 2.6: Expenditure Schedule by Component (UA million)
COMPONENT Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL % TOTAL
I. Improving access in HEST in six public universities and two degree-awarding
tertiary colleges
5.81 12.20 18.47 15.34 9.00 60.82 81.70
II. Building capacity in public HEST institutions
0.70 1.31 1.92 1.60 0.97 6.50 8.74
III .Improving quality and relevance of
HEST in public institutions 0.52 0.98 1.55 1.26 0.74 5.15 6.92
IV. Project management 0.41 0.40 0.40 0.40 0.36 1.97 2.64
TOTAL 7.44 14.89 22.34 18.60 11.07 74.44 100
10.0% 20.0% 30.0% 25.0% 15.0% 100.0%
Table 2.7: Summary of Project Costs by Category of Expenditure (UA million) CATEGORY F.E. L.C. Total % Total % F.E.
A. Goods 22.52 0.00 22.52 30.2 100.0
B. Works 21.05 9.15 30.20 42.0 70.4
C. Services 5.27 6.35 11.62 14.9 42.9
D. Operating Costs 0.14 0.32 0.46 0.5 36.2
E. Miscellaneous 1.07 0.00 1.07 0.8 100.0
Base Cost 50.05 15.82 65.87 88.5 76.0
Physical Contingency 2.50 0.79 3.29 4.4 76.0
Price Contingency 4.00 1.27 5.28 7.1 76.0
TOTAL COSTS 56.56 17.88 74.44 100.0% 76.0%
2.5 Project’s target area and population
The proposed project will benefit about 40,000 high school students graduating
annually. These will be the students eligible for admission to GoU tertiary institutions
countrywide, together with a postgraduate community of 1,800 in the HEIs. The project will
9
expand and improve the quality of delivery at HEST at five operational public universities
(MUK with student enrollment of 40,000; KYU 27,000; MUST 3,700; BU 2,500; GU 4,000)
and two strategic degree-awarding institutions (UMI with enrollment of 5,000, and MUBS
13,600), and the new Muni University in the West Nile region, which would enroll about
3,000 by 2018 into centers with improved learning environment. An average of 35% of the
enrollments listed are female. An estimated 2,000 students will receive internships in
industry, while 95–160 needy students will receive scholarships to study STI programs in the
public universities, with 10 of them being funded through a link with CIAT. This will lead to
more than 71,000 graduates (at least 40% being women) benefitting with training that will
make them become high-level manpower in STI to respond to the scarcity of these skills in
the labor market. Eighty faculty staff and 24 management staff will also receive scholarships
for training at the masters and PhD levels, with at least 40% being women and persons with
special needs. The project would also enable the university community in the eight
institutions to have access to ICT for education and information management, making them
better suited for employment globally. Other beneficiaries of the project include the families
of all students, the teaching staff and prospective employers. The families of students who
succeed in completing their studies in the TI’s will have enhanced their possibilities of
increased lifetime earnings.
2.6 Participatory process for project identification, design and implementation
2.6.1 The project has been developed through an extensive participation of key
stakeholders. Throughout the stages of identification, preparation and appraisal of the
project, the project team consulted widely with the view to enhancing ownership of the
project. A consultative workshop during the preparation mission chaired by the Minister of
Education and attended by all major stakeholders also provided a key forum for shaping the
project. During identification and appraisal missions, visits were made to all beneficiary
institutions and meetings involving the institutional leadership were carried out. Further
working meetings were held with technical departments, which provided all the required
details for the prioritized sectors of the institutions. All the proposals being funded have been
prepared by the beneficiary institutions after thorough consultations processes with their
management boards and faculties. Consultations were also made with the EDPs, and a special
consultation on the project appraisal was held with the tertiary education working group of
the Uganda Communication Commission, Uganda National Council for Science and
Technology (UNCST), Ministry of Gender, Labour and Social Development, the Uganda
Industrial Research Institute, among others. These consultations helped identify the priorities,
constraints and opportunities that informed the design of the project.
2.6.2 Consultations with the private sector were held with the UMA, PSFU and
CIAT.6 These addressed the nature of programs at the HEST institutions and the suitability
of graduates for the labor market. Consultation with the CIAT focused on the application of
research from universities and how this research could be rolled out to industry for
multiplication.
2.6.3 The project design includes specific provisions to address the key issues noted
from the consultations. The implementation arrangements include the creation of a Project
Steering Committee (PSC) to provide strategic guidance during implementation. The
project’s monitoring arrangements also provide for beneficiary involvement as well as
technical support for ICT use in education, staff development and capacity-building technical
6 UMA and PSFU are member organizations where all major industrialists in the country are members. They will enhance links of universities to these and support placement of interns and organize forums where industry works closely with the universities. CIAT works
closely with government research institutions in agriculture. It has state-of-the-art laboratories and networks with worldwide researchers and
production companies, thus it would add value to selected university programs to be extended to industry.
10
assistance at the MoES, support to monitoring of enrollment and student data by the NCHE,
and monitoring of links with industry by the UMA, PSFU and CIAT in research for
agriculture. The EDPs will also be appraised constantly through the annual education sector
review data.
2.7 Bank Group experience and lessons reflected in project design
2.7.1 The project would be the fifth Bank Group–financed operation in the education
and training sector in Uganda since 1990. The first project, the Strengthening of Scientific
and Technical Teacher Education Project, with an ADF amount of UA 12.90 million,
rehabilitated the faculties of science, technology and education at MUK, the Uganda
Polytechnic Kyambogo (UPK) and the Institute of Technical Education Kyambogo (ITEK).
The project was a catalyst in the transformation of UPK and ITEK into what is now KYU.
The second project, approved in 2000, was the Education Sector Investment Plan, with an
ADF operation of UA 22.38 million. It supported increasing the primary school intake;
mainstreaming integrated production skills and agriculture in primary and secondary
education; and improving science education teaching in rural girls’ secondary schools. The
third project, approved in 2005, was the Support to the Post-Primary Education and Training,
financed with a grant of UA 20.00 million. It provided increased and equitable participation
in postprimary education and training expansion of 16 institutions and construction of 25
seed secondary schools. The fourth operation, approved in 2008, is the Post-Primary
Education and Training Improvement and Expansion, financed with an ADF loan of UA 52.0
million. Its main goal is to provide increased and equitable participation in postprimary
education and training through the expansion of 42 existing secondary schools and 2 BTVET
institutions and the expansion and construction of 27 seed secondary schools. KYU also
benefited from activities of the ADF-supported African Virtual University.
2.7.2 Several lessons have been taken into account in designing this project. The Bank
gained valuable experience in the design and implementation of the above projects. All these
projects have increased outputs at the secondary level with a large number of secondary
graduates. These students require further training, hence the need to intervene in HEST. The
project also would also strengthen the previous investments, which were made through
Education I project at MUK and KYU. (See statistics on enrollment growth in Technical
Annex A.2). The main lessons are the need to address issues of effective and stable project
management by putting in place a dedicated project team within MoES; the need for adequate
field supervision; effective borrower’s commitment to project implementation and
counterpart funding obligations; strong community ownership and participation in project
activities; close sector-donor cooperation and coordination; concentration in secondary and
BTVET sectors over more than two project cycles enabled the Bank to be a leader in the
sector; and funding through a project arrangement has better value for money in Uganda than
using a sector or general budget support. This conclusion is reached through assessments
made by the EDPs and the GoU through the joint education sector reviews where facilities
supported by the ADF have been found to be of higher quality compared with those funded
by other EDPs for the same amount of funds spent. The withdrawal of some EDPs from the
budget support mechanisms in 2011 attest to the lessons that the AfDB’s concentration on
projects is appropriate and has higher returns.
2.7.3 The current AfDB portfolio in Uganda of UA 792.34 million is rated as
satisfactory (2.5 of 3.0).7 For the education sector, the recently closed Education III and the
ongoing Education IV are rated at 2.94 and 2.72, respectively. The Project Completion
7 AfDB. 2011. “Country Portfolio Implementation Plan Report, September 2011.” Kampala.
11
Reports for Education I, II and III projects have been prepared, and the achievements are
detailed in Technical Annex C.13.
2.7.4 Disbursement would be enhanced if design consultants for works are recruited
early. This approach is adopted in the HEST project by involving the TIs in the initial
activities of master plan development and design of the priority facilities. This will lead to
enhanced start-up of the project. The HEST project also ensures that there is effective
management having dedicated project staff as opposed to staff already fully engaged in other
activities.
2.8 Key performance indicators
2.8.1 The project results-based logical framework contains key impact, outcome and
output indicators. The main outcomes indicators are the number of people accessing
equitable STI training at the university/tertiary levels; STI enrollment in full virtual degrees
in the TIs; an increase in the ratio of researchers per members of the workforce; percentage of
HEST students that graduate; and number of public universities ranked between 10 and 12 in
Africa on the Global Competitive Indicators rating. The output indicators include area of STI
faculties expanded, improved and equipped in the eight TIs; number of STI academic staff
trained at the masters and PhD level in HEST in the TIs; number of BI staff and MoES HE
management staff trained in strategic management areas, maintenance and governance;
number of new STI research programs initiated or enhanced in strategic sectors funded by
NCHE; and number of major STI programs linked to the labor market.
2.8.2 Progress on achieving these indicators will be monitored through the MoES’s
M&E system. The system is coordinated by the Education Planning and Policy Analysis
Department (EPPAD) of the MoES and supported by the NCHE, the institution mandated to
monitor quality assurance in HEST provision in Uganda. The NCHE will evaluate access,
staff compliment, computer-to-student ratios, learning and laboratory space per student, and
research activities initiated as impact indicators. The project is also funding an impact
evaluation study that will generate knowledge and indicators to measure performance and
achievements in the use of e-learning in delivering HEST. Details of the project monitoring
arrangements are described in section 4.6, while the outline of the impact evaluation study is
summarized in Technical Annex C.5.
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. Activities under the project will expand access through new
constructions at the eight institutions, mainly lecture space, labs, libraries, workshops, ICT
infrastructure and business incubator centers. Rehabilitating old facilities would also improve
the environmental conditions for learning in the institutions. Disposing of outdated equipment
will be done in accord with the National Environment Management Authority (NEMA)
regulations leading to the use of better equipment, which are more energy-efficient. The
project promotes using sustainable technologies, which will reduce the impact on the
environment and lower maintenance costs. The information provided in the Environmental
and Social Management Plan (ESMP) includes mechanisms for identifying adverse
environmental and social impacts associated with the implementation of activities and how
they will be mitigated. (Technical Annex B8 provides more details on the implementation
activities based on the ESMP.)
12
3.1.2 Climate change. The project will have a minimal negative impact on climate
change. The universities like all other institutions in the country are required to adhere to the
provisions of NEMA. These regulations address pollution concerns and the unchecked use of
natural resources that maintain a balanced ecosystem. Through this operation, outdated
equipment will be replaced with more efficient ones, improving energy use. Increased use of
ICT will also contribute to the reduction of paper use, and circulation of people, which will
cut down on fossil fuel requirements. Further, the HEST programs in all the TIs include
training on various courses supporting environmental resource management and appropriate
technologies adoption. Graduates with this knowledge will be mindful of climate change
impacts in their operations.
3.1.3 Social. The project will contribute greatly to the attainment of Uganda’s NDP
2010/2011–2014/2015 and Vision 2025, which aim to make the country a knowledge
economy. Investments in higher education and skills development will derive more economic
and social benefits by enabling Uganda to raise productivity in key production sectors and to
compete in the global market. Currently 75% of employment is in primary sectors, where
little value addition is done. The enhanced STI training at the university level will contribute
to a knowledge-based economy through skilled manpower, which is expected to add value in
the production chain. The strategy adopted will create a platform for greater collaboration
between universities and the labor markets, which will have the effect that future graduates
are better suited for these markets. The TIs would become skills and entrepreneurship
training grounds through the incubator and production centers. This approach could change
the apparent notion in the country that graduates leave tertiary institutions without adequate
skills, and thus they remain unemployed for long periods or are employed in jobs that their
skills do not match.
3.1.4 Special needs persons. Persons with disabilities would also be supported to
participate in HEST training through special equipment, appropriate modification of
infrastructure and ICT tools. KYU, with 82 persons in special programs for training of
teachers for special needs education, would be supported to enhance these programs. Special
equipment would be provided for the production unit for the blind. The support would enable
production of Braille-embossed documents to be used by the blind countrywide and beyond.
Special ICT equipment would also be provided to support the special needs programs. In all the
TIs, new multistory learning facilities would be fitted with ramps or lifts so that they are more
accessible by all groups. In GU and MU, bridging courses for female participants would be
emphasized to connect students from postconflict areas of the country with HEST, as schools in
the region may have lost capacity to deliver science education to many in the pre-2006 conflict
period. Further, campus master plans should ensure that no persons are displaced from their
settlements because of this project.
3.1.5 Gender. The project will help address gender disparities in HEST. Higher
education and affiliated institutions in Uganda have an enrollment of about 44% women, but
it is less than 30% in STI programs, while in some arts programs women are the majority, at
57%.8 Women are also poorly represented among the academic staff, with representation
below 15% in STI programs. This project would emphasize affirmative action for improving
the participation of female students in STI and in training of staff. A ratio of at least 40% will
be maintained in favor of women candidates in support to staff development and poor
students’ scholarships. In the newer TIs, the project encourages private partnerships with the
institutions for the construction of hostels for students, with female students and those with
special needs being given priority. Under the entrepreneurship incubator centers and
internship programs, female students and those with special needs will be given special
8 NCHE. 2010. The State of Higher Education and Training in Uganda Report in 2010. Kampala.
13
consideration. Bridging programs will be set up to enable these vulnerable groups to
participate in the skills training. Particular attention will also be taken in the design of
learning buildings so that toilet blocks have special consideration for female and persons with
special needs. Through e-learning, women who may be constrained from in-class
participation would be enabled to study. (Technical Annex C.7 details the gender activities
and scholarship arrangements.)
3.1.6 HIV/AIDS. The project would enhance the TIs’ programs for awareness,
counseling and management of HIV/AIDS. Four of the TIs are already developing
HIV/AIDS strategies for the institutions, while MUK has a strategy in place. Selected
activities, which have maximum impact on reducing the incidence of HIV/AIDS, would be
supported based on expressed needs. The core activities to be supported include essential
supplies, counseling services and awareness creation materials so that all students and staff in
the institutions are well aware of the situation, and that no student is denied access to training.
(Annex C8 describes the HIV/AIDS interventions to be supported.)
3.1.7 Involuntary resettlement. No people will be displaced by the project. The activities
supported by the project will be taking place in the already existing institutions where the
land has no third party claims.
3.2 Economic impact
3.2.1 Investments in HEST in Uganda have a positive economic impact because public
investment in higher education will improve the productive ability of the country
through systematic acquisition of knowledge and skills. Skills are positively related to
innovation, productivity and growth. Thus, investment in higher education has the potential
to lift productivity and competitiveness by providing the high-level skills demanded by the
labor market—and by launching or expanding robust research needed for innovation and
higher productivity (and growth). Uganda has been on an increasing growth trajectory since
the 1990s but it still faces the challenges of maintaining growth and moving up the income
ladder, both of which require improvements in productivity. Increased investment in higher
education is critical in this effort because it provides the high-level skills and research to
apply current technologies and to assimilate, adapt and develop new technologies, two key
drivers of productivity. This HEST project enhances this argument, by ensuring the provision
of the actual skills, such as STI and high-level competence in ICT use in all learning. It
therefore would lead to high economic and financial outcomes for the country. (Technical
Annex B.7 provides the key underlying assumptions of the economic feasibility model used.)
3.2.2 The project is economically sound and beneficial to HEST in Uganda. It will
contribute to the GoU’s goal of improving HE to provide adequate quality human resources
for development by increasing the number of those enrolled in STI programs at university
level from 36,000 in 2011 to 71,000 in 2018 through normal on-campus contact and another
60,000 more through e-learning. These graduates will be available for relevant science and
technology work in the country and internationally. 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 the subsector level. At the institutional level, increased
enrollment will lead to an estimated extra revenue of UGX 72 billion by 2018.
3.2.3 The project will also have a direct impact on employment in the short, medium
and long run. In the short run, it will generate an estimated 7,000 STI graduates per year,
and if 30% join the private sector as self-employed, they could create more than 2,100 jobs a
year as single entrepreneurs or more than 6,300 jobs if creating micro businesses of at least
three persons each. In the medium term, the project will lead to more than 71,000 employees
14
and job creators when the whole cohort enrolled by 2018 has graduated. An estimated 20%
more lecturers would also be employed in the universities if the current establishment
performance of 40% improves to 60% per university as expected after this intervention. In
addition, due to improved ICT, the TIs would bring out more competent graduates that can
create jobs through e-business or join jobs beyond regional boundaries.
3.2.4 The project supports the GoU’s commitment to increasing access to and
improving the quality and relevance of HEST as a vehicle for poverty alleviation.
Poverty and education are highly correlated, with poverty being both the cause and effect of
low levels of education. Currently 90% of students in public universities, and all students in
private sector tertiary institutions pay their fees. This heavy commitment to education by the
families implies that they are aware of the benefits they would reap from enrolling their
students at the HE level. Benefits would be reaped if the programs are better tailored to the
labor market or to job creation. An average of UGX 10 million is spent by a student in
undertaking a university-level education per year. The project will support 95–160 poor
students with three- to five-year scholarships, totaling UA 1.20 million, thus lowering their
burden in participating in HEST. (Technical Annex B7.10 provides details for HEST
investment economic gains.)
4. PROJECT IMPLEMENTATION
4.1 Implementation arrangements
4.1.1 The Executing Agency will be the MoES. The Permanent Secretary of MoES would
be the overall Accounting Officer of the government. The day-to-day activities of the project
will be handled by the EPPAD in collaboration with the Directorate of Higher, Technical and
Vocational Education and Training (DHTVET), both for the MoES. The MoES will
strengthen the existing Project Coordination Unit (PCU) for ADF projects at the EPPAD to
implement the project. A project coordinator in the PCU, dedicated to the activities of the
HEST project, will be designated by the GoU to manage this project. The DHTVET will be
strengthened with a higher education and training technical assistant to support the
coordination of the staff and institutional management trainings, student scholarships,
institutional links and review of the HESP to 2020. The actual training of staff and student
scholarship management will be handled by the TIs.
4.1.2 The implementation capacity of the PCU in the EPPAD was assessed and found
to be adequate to implement the project. However, due to heavy load from the Education
IV Project, it will be expanded through the recruitment of a financial management specialist
and an assistant accountant, who both will work closely with the MoES assistant
commissioner of financial management services for managing project finances. A project
architect, a quantity surveyor and an ICT expert, who will work closely with the TIs and the
Construction Management Unit at the MoES, will be recruited to support implementation of
the civil works and ICT systems. The project would also fund a procurement specialist and a
M&E specialist who would handle procurement and M&E. A PSC chaired by the Permanent
Secretary of the MoES, with representation from key relevant institutions, will be nominated
to handle project management oversight. (Details of the implementation arrangements, the
PSC and Project Organogram are in Technical Annexes C.3 and C.10.)
4.1.3 The target training institutes will be involved in project management. They have
specific capacities for project implementation, and they are already engaged in various capital
development activities in their respective centers as per their mandates. To expedite civil
works implementation, the TIs are already engaged in developing the institutional master
plans using their own resources (BU, MUST, GU, KYU and UMI). They will also carry out
15
staff training, management of scholarships, research and academic program links with the
labor market, as well as the incubator and production units. Each of the TIs will appoint a
project activities coordinator who will work closely with the MoES project coordinator to
implement their institutional activities. A MoU between the MoES and the TIs outlining the
roles and responsibilities of the institutions in the implementation of the project would be
reached before the first disbursement of the project.
4.1.4 Procurement arrangements. All procurement of goods, works under
International Competitive Bidding and acquisition of consulting services financed by
the Bank will be in accord with the Bank’s applicable rules and procedures. These
include the Rules and Procedures for the Procurement of Goods and Works and the Rules and
Procedures for the Use of Consultants, May 2008 edition and as amended from time to time
using the relevant Bank Standard Bidding Documents. Procurement of National Competitive
Bidding (NCB) contracts would be carried out in accord with the national procurement law as
prescribed under the Public Procurement and Disposal of Public Assets Act 2003 or any
approved amendments, its accompanying regulations and Standard Bidding Documents. The
Bank has assessed the national procurement procedures and bidding documents for
procurement of goods and works under the NCB and note that they are generally consistent
with Bank’s Rules and Procedures. Deviations and omissions not applicable under Bank
financing will be elaborated in the loan agreement. These include the participation of
government-owned institutions in the procurement and application of preferential schemes
among others. (Appendix VI provides procurement summary table, while the detailed
procurement arrangements are explained in Technical Annex B.5.)
4.1.5 The capacities of the MoES’s Procurement and Disposal Unit and the existing
PCU in EPPAD need to be strengthened. A procurement specialist will be recruited within
EPPAD to strengthen the capacity of the MoES to carry out the procurement activities under
the proposed project in order to expedite the procurement process, the GoU will request
advance contracting for the selection of the consulting firms for the preparation of the bills of
quantities and tender documents and the supervision of civil works and the prequalification of
contractors for MUK and KYU.
4.1.6 Financial management. The MoES’s financial management system and that of
the TIs were assessed and found to be adequate for the project subject to improvements
as explained below. The MoES’s EPPAD, which implements the current Bank’s projects,
has structures in place as well as one accountant to carry out the financial management
responsibilities of the current Bank finances projects. The financial management assessment
concluded that—due to the complexity and size of the new HEST project, and the fact that
the Education IV Project, which has disbursed 13.5% of the project funds as of July 10, 2012,
will also be under implementation for the next two years, and considering that these are social
projects that have numerous activities and contracts—the MoES will need to assign two full-
time qualified accountants to manage the new project, separate from the ongoing project.
(Other technical assistants to enhance the process are detailed in paragraph 4.1.2.)
4.1.7 The financial management capacities of a sample of the TIs were assessed and
found adequate but with areas needing further improvements. The finance departments
at MUK, KYU and MUST are fully staffed with accountants. The major weakness noted is
that in KYU, MUST, GU and BU accounting transactions are captured manually and there is
no existing accounting system. For example, MUK and KYU had their 2010/11 audit reports
qualified by the Auditor General while those of MUST were unqualified but with concern
that there were many unfilled vacancies in the institution, so the effectiveness of the financial
management system could not be ascertained. The implementation of the Auditor General’s
16
recommendations would require major structural changes in accounting systems and
information management, thus resulting in the project’s focus on ICT-supported integrated
financial management information systems (IFMISs).
4.1.8 The project will substantially make use of the country’s public financial
management systems. The MoES uses the government’s budgeting process, which is
participatory and adequate for the project. It would embark on a detailed budget preparation
and ensure that the counterpart funding is fully budgeted for starting FY2013/14. The
contributions from TIs would not be deposited into the project account in the MoES but
would be contributions in kind valued by the MoES from the relevant activities to the project
supported by the each institution.
4.1.9 The MoES uses IFMIS to capture its accounting transactions. There is an existing
finance manual tailored toward the Bank’s projects. All financial transactions will be
captured at the institutions level and also at the project management level. The project’s
finance team will maintain a separate cash book for each spending institution. Bank
reconciliations will be performed on a monthly basis. As part of its internal control system,
the MoES has instituted various control measures including budgetary controls, separating
expenditures by source of funds and project. The new project ledgers would be kept separate
from those of other projects. Timely and proper flow of documentation from the institutions
being supported would be instituted by the Executing Agency to ensure justifications for
expenditure and financial reports are prepared appropriately.
4.1.10 Reporting and audit. The internal audit function of the MoES will play an
important role in conducting regular project internal audits. The departments reports will
be shared with the Bank as needed. EPPAD will prepare quarterly financial reports, which
will be submitted to the Bank 45 days after the quarter’s end. These reports will include a
consolidation of all expenditure incurred by the TIs. For timely consolidation of the
information, the TIs will submit their financial reports to the EPPAD project finance team not
later than 30 days after the closure of the quarter. The annual financial statements of the
project will be audited by the government Auditor General or a firm appointed by the Auditor
General based on the Bank’s audit terms of references. The annual Audit Report, complete
with a Management Letter, will be submitted to the Bank no later than six months after the
end of the financial year. (Technical Annexes B4 and C12 provide financial management
details.)
4.1.11 Disbursement arrangements. The project will use all four disbursement methods
as prescribed in the Bank’s Disbursement Handbook. It will operate one foreign special
account into which the proceeds of the loan will be deposited and further to a local currency
special account. Both accounts will be opened at the Central Bank of Uganda. The opening of
foreign and local currency special accounts is a condition precedent to first disbursement of
the loan. An initial disbursement will be deposited in the project special account in foreign
currency based on a six-month cash flow forecast for the project and based on the agreed
work plan approved by the Bank through the initial withdrawal application to the Bank after
the effectiveness of the project. Actual expenditures will be replenished through submission
of withdrawal applications (at least monthly) supported by statements of expenditures while
direct payment method will be used for payments in respect to contracts for equipment,
supplies, works and services (including audit and consultancy). The other two methods are
reimbursement of approved payments made by the borrower and payment under the
reimbursement guarantee. The Bank’s Disbursement Letter will be issued stipulating key
disbursement procedures and practices to be used by the project.
17
4.2 Monitoring and reporting
The M&E expert in EPPAD, working in collaboration with the entire PCU and
M&E unit of the MoES will handle M&E activities of the project. The TIs will designate
activity coordinators from their institutions who will prepare the monitoring data on various
parameters together with all other relevant statistics and communicate the same to the M&E
officer in EPPAD, who will then prepare the monitoring reports. The NCHE, which hosts the
national platform for universities and tertiary institutions’ data, will have an overall
responsibility for hosting the TIs data on their website. The TIs will also be expected to host
key data on their academic and skills progress on their respective interactive websites and
conduct a tracer study in the last year of the project to evaluate how beneficiary graduates
have performed in job placement or job creation. EPPAD would prepare the Quarterly
Progress Reports, according to the format and procedures of the Bank. The Bank will also
maintain close monitoring of the project by fielding a minimum of two supervision missions
per year, in addition to the regular project support from the Uganda Field Office of the AfDB.
(A progress monitoring table is shown in Annex V.)
4.3 Governance
The Bank’s experience in implementing projects in Uganda has shown that the
governance practices and control systems in place are satisfactory. However, Uganda had
lower rating in the Country Policy and Institutional Assessment rating from 4.1 in 2010 to 4.0
in 2011, which in turn led to a decline in the ADF-12 allocation to the country from UA 308
million to UA 287 million over 2011–13. The decline in the rating was mainly attributed to
incipient weaknesses in governance that led to wastage and leakage of public funds in some
sectors. However, the Bank’s portfolio, mainly in projects arrangements, was satisfactorily
run. The audit and supervision reports of the ongoing education project have not reported any
irregularities that would compromise fiduciary assurance. The Bank’s supervision and audit
system will be proactive and provide the desired guidance on internal control systems. To
ensure that better resource management is maintained at the TIs, the project is funding ICT
integrated information management systems, which will enable institutional management to
be linked with the rest of the government financial systems.
4.4 Sustainability
4.4.1 The sustainability of the project would be guaranteed by increasing the capacity
of the TIs to spend more on recurrent expenditures that affect quality of delivery. Investment of resources by the project in capital improvements of the institutions would have
a substituting effect in favor of recurrent expenditures necessary to achieve quality delivery.
As result of this investment, about UGX 218 billion of the TIs’ internally generated nontax
revenue that was hitherto spent on development-related expenditures will be freed for
recurrent expenditures, particularly staff allowances, research, ICT consumables and
pedagogical materials whose expenditure ratios have been negligible to have any meaningful
impact on the quality of delivery. In addition, the production and incubator centers to be
established in each of the TIs will generate more resources for the maintenance of TI
facilities. Links with industry will bring in partners who could further sponsor STI programs.
The reviewed HESP 2020 would spur interest in HEST investment by other partners.
Maintenance of ICT equipment will be sustained through user fees.
4.4.2 The investment in capital through the project would also increase access and
efficiency in HE delivery. An increase in access at the institutional level as a result of
project intervention will reduce the average cost of delivery of programs due to an increase in
18
economies of scale—and thus a reduction of tuition fees. Reduced tuition fees will encourage
enrollment for both male and female students, leading to more revenue collected per
institution and better delivery because of improved systems.
4.4.3 The government’s commitment to increase budgetary allocations to HE will
ensure the sustainability of the project. It is projected that the wage bill currently at
UGX 62.53 billion a year will more than double to UGX 135.95 billion a year by the
project’s end of FY2017/18. Sustainability of the increasing wage bill is consistent with the
projected economic growth over the medium term.9 The government’s commitment is
evidenced by the plan to increase this allocation more than 60% from UGX 129.7 billion in
FY2011/12 to UGX 230.19 billion in FY2017/18. The expanded TIs will also increase their
enrollment an average of 10% a year, realizing additional UGX 17.78 billion nontax revenues
annually, which will further sustain the activities.
4.5 Risk management
4.5.1 A thorough assessment of potential risks has been conducted throughout the
project formulation process. The project builds on lessons from the four previous
operations financed by the Bank in the education sector from 1991 to present. The risks have
been dealt with through improved project management. Table 4.1 details the risk and
mitigation measures.
Table 4.1: Risks and Risk Mitigation Measures
Risk Rating Mitigation Measure(s)
1. TIs may not sustainably
maintain the expanded training
facilities
Moderate
1a. Increase the MoES budget to HE beyond the current 10% and allocate at
least 0.1% for maintenance
1b. TIs to use business production centers to generate alternative sources of
finance to augment GoU funding on maintenance
2. All TIs may not be able to raise
their counterpart contribution of
4% on time
Moderate 2. GoU capital subventions to the TIs to be used as the project would provide
funds for major capital improvements
3. Limited broadband connectivity
in TIs leading to weak and costly
Internet services for e-learning
Moderate 3. GoU to speed up implementation of the national broadband backbone to
extend the fiber-optic access to TIs and negotiate with the ISPs concessionary
bandwidth rates for HEST institutions through incentive packages
4. Weak retention of trained staff
due to unfavourable remunerations
Low 4a. Use industrial links and production centers to raise more funds for hiring
more staff on training grades
4b. GoU and TIs to reprioritize regular review of engagement conditions for
staff, especially in STI
5. Research/innovation networks
established may not be sustained
Low 5a. Strong links with industry and other world class institutions required to
generate research and innovation sponsorships
5b. Production centers in institutions would create income-generating
activities for sustainability
4.6 Knowledge management
4.6.1 The project would contribute to knowledge generation and management.
Through impact evaluation research, it will evaluate how ICT could change the methods of
delivery in HEST. Both staff attainment and student attainments through e-learning will be
assessed. The outcome of this study will be applied to influence the new direction of
Uganda’s HESP to 2020. This study will thus add to knowledge in the country, the Bank and
Africa-wide.
4.6.2 The project would support knowledge management through the development of
libraries with virtual capabilities, research networks and links with private sector. Staff
9 Technical Annex table A2.13 provides the macroeconomic framework assumptions for budget growth for education.
19
and students would be trained on accessing and using e-books and on virtual libraries to
extend their knowledge view. Through links with CIAT, 10 postgraduate scholars would be
trained on translating research in tropical agriculture into actual products. The project would
also expand the knowledge base in the TIs by training 80 academic and 24 institutional
managers to higher degrees, thus adding the stock of high-level personnel. These are all
positive indices in knowledge development and management in the country. Increasing the
number of graduates from the universities will also add to the knowledge in the economy as a
whole.
5. LEGAL INSTRUMENTS AND AUTHORITY
5.1 Legal instrument
The legal instrument for this project shall be an ADF Project Loan Agreement.
5.2 Loan conditions
5.2.1 Subject to approval by the ADF Board of Directors, the loan conditions are the
following:
Conditions precedent to loan effectiveness
5.2.2 The loan agreement shall become effective, subject to the borrower’s compliance
with the provisions of Section 12.01 of the General Conditions Applicable to ADF Loan
Agreements and Guarantee Agreements, as shall be elaborated in the loan agreement to be
signed between the GoU and the ADF.
Conditions precedent to first disbursement
5.2.3 In addition to the entry into force of the loan agreement, the first disbursement of the
loan shall be conditional upon the fulfillment by the borrower of the following conditions:
(i) Opening of special accounts at the Bank of Uganda on terms and conditions
acceptable to the Fund as follows: (a) a foreign currency account for the deposit of
loan resources; and (b) a local currency account for the deposit by the borrower of its
counterpart funds contribution for the project.
(ii) Appointment of the PSC for the implementation of the project, comprising the
following members: Permanent Secretary of the MoES, one representative of the TIs,
Director of DHVTET at MoES, Commissioner of EPPAD in MoES; Executive
Director of NCHE; Executive Director of UNCST; representative of the PSFU or the
UMA; representative of the Permanent Secretary of the Ministry of Finance,
Planning and Economic Development; and representative from the Ministry of
Gender and Labour.
(iii) Provision of written confirmation by the GoU that each of the TIs owns all the land
on which each relevant component will be implemented, free of any third-party
claims.
5.3 Compliance with Bank’s policies
This project complies with all applicable Bank policies. The project is in line with
the Bank’s Education Sector Policy as well as with the Bank’s Country Strategy Paper for
20
Uganda for 2010–14. The project also complies with the Bank’s procurement and disbursement
policies and rules.
6. RECOMMENDATION
Management recommends that the Board of Directors approve the proposed ADF
loan of UA 66.70 million to the Republic of Uganda, and UA 0.30 million resulting from
cancelled resources, to support improvement and expansion of higher education, science and
National, Direct budget support 9,480,261 Enabling provision of pre-primary education
Irish Aid Project Support QEI districts and Moroto 8,15,364 Training P1-4 teachers in curriculum
Project Support Karamoja districts 407,682 Training teachers in teaching methods and establishing M&E
Project Support National 1,358,940 Capacity support to selected training institutions-BTVET
Project Support National 1,233,046 Expanding database for teaching and non-teaching staff and monitoring schemes
Project Support Karamoja Region 28,538 Construction and rehabilitation of schools
ILO Project Support Wakiso and Mbale 475,629 Developing model on access to primary education(Policy and programmes
Netherlands
Embassy
Project Support National with focus districts 4,395,932 Strengthening TDMS with International Educators for basic education
Project Support National 705,901 Core funds for Teachers Union
USAID Project Support National 50,000,000 Support MOES on skills development at primary level and HIV/AIDS education
UNFPA Programme Support/ project National 315,378 Integration of sex education in secondary curriculum and support for EMIS
Programme Support National 183,203 Improve quality of midwifery training
UNHCR Project Support Isingiro, Kegegwa, Kiryandongo, Moyo,
Adjumani, Arua, Kampala, Hoima
876, 418 Expanding settlement schools by constructing classrooms and houses for teachers and
providing them with amenities.
AfDB Project Support National 85,000,000 Supporting Secondary schools and BTVET
Project Support- Grant National 32,000,000 Supporting Secondary schools and BTVET- closing June 2012
JICA Project Support National 400,000 Training teachers in teaching methods and establishing M&E
Technical Assistance National 300,000 Improving teaching quality for BTVET
Belgian
Embassy
Study and Consultancy National 407,682 Secondary Education
Study and Consultancy National Support Belgian cooperation and finance preparatory studies –Primary schools
Sector Budget support National 16,307,280 Focus monitoring on post primary education and quality of teaching and training
Project Support Kampala and Arua 26,163,662 Improving linkages (MOES and selected Colleges)
GIZ Project Support 8 sub-regions 5,163,972 PPPs with BTVET
EU Project Support Abim, Moroto, Nakapiripirit 597,934 Skills empowerment for alternative livelihood
Project Support Nakapiripirit 611,523 Improving civil society capacity
Project Support Kotido 597,934 Improve basic and secondary education
Project Support Moroto, Nakapiripirit 665,881 Improving Vocational skills
Project Support Selected Karamoja districts. 529,987 Skills training for poverty reduction
Project Support Kampala, jinja, Mukono, Kamuli, Tororo 679,470 Workers PAS-Validation of Informal training
Project Support Gulu, Pader, Kitgum, Lamwo, Agago 924,079 Expanding technical education in UG
Project Support In selected districts 774,596 Transitional skills training for employment
Project Support Lira, Tororo 951,258 PPP for youth empowerment
Project Support Oyam, Apac, Amolatar 733,828 Creating income
Project Support Pader 475,629 Creating employment
Project Support Amuru, Gulu, Kitgum 951,258 Building skills -BTVET
General Budget Support National 237,814,500 Various sectors
World Bank Adaptable program Loan 1 National 150,000,000 Support government policy of USE reforms
Project Support National 30,000,000 Strengthening science teaching & research in the universities and supporting PPPs with academia (research and scholarships)
Budget Support National 100,000,000 Multi-sectoral - but HD indicators are aligned with JHF.
Appendix IV: Map of Uganda Showing the location of Target Institutions
Key
Target Institution
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
AppendixV: Monitoring schedule
Timeframe Milestone Monitoring agent/feedback
September 2012 Loan Negotiation GoU and AfDB
October 2012 Board Approval AfDB
January 2013 Signing of Loan Agreement GoU and AfDB
April 2013 Loan Effectiveness GoU and AfDB
May 2013 Project Launching AfDB and MoES
October 2013 First Project Supervision Mission AfDB and MoES
November 2013 Annual Joint Sector Review
meeting MoES and AfDB
February 2014 Second Supervision Mission AfDB
Every May and November
from 2014 to 2017
Joint Sector Reviews as well as
supervision missions MoES and AfDB
December 31 of 2014, 2015,
2016, 2017 Submission of Audit Reports MoES
March 2015 Mid-term Review AfDB and MoES
December 2017 Last Special Account
Replenishment Date MoES and AfDB
June 2018 Completion of all activities MoES
December 2017 PCR undertaken AfDB and MoES
June 2018 Last Disbursement Date AfDB and MoES
December 2018 Final Audit Report MoES
Appendix VI: Procurement Arrangements Summary Summary of Procurement Arrangements vis-à-vis the use of Country Procurement System (UA 74.44 million) in UA millions
PROJECT CATEGORIES
UA '000 000
ICB Other Shortlisting Totals
Total ADF
A. WORKS
1. Makerere University
1.1 Construction, Rehabilitation and External works (9 buildings) 8.50 [8.50] 8.50 [8.50]
1.2 Incubation/production centre 0.16 [0.16] 0.16 [0.16]
2. Kyambogo University
2.1 Construction, Rehabilitation and External works (14 buildings) 9.12 [9.12] 9.12 [9.12]
2.2 Incubation/production centre 0.15 [0.15] 0.15 [0.15]
3. MUST
3.1 Construction, Rehabilitation and External works (10 buildings) 3.39 [3.39] 3.39 [3.39]
3.2 Incubation/production centre 0.14 [0.14] 0.14 [0.14]
4. Gulu University
4.1 Construction, Rehabilitation and External works (9 buildings) 3.99 [3.99] 3.99 [3.99]
4.2 Incubation/production centre 0.16 [0.16] 0.16 [0.16]
5. Busitema University
5.1 Construction, Rehabilitation and External works (7 Buildings) 3.79 [3.79] 3.79 [3.79]
5.2 Incubation/production centre 0.16 [0.16] 0.16 [0.16]
6. Muni University
6.1 Construction and External work (4 buildings) 1.51 [1.51] 1.51 [1.51]
6.2 Incubation/production centre 0.07 [0.07] 0.07 [0.07]
7. MUBS
7.1 Construction and External Works Faculty of Business Computing 1.24 [1.24] 1.24 [1.24]
7.2 Incubation/production centre 0.07 [0.07] 0.07 [0.07]
8. Uganda Management Institute
8.1 Completion of Teaching & office complex and External Works 1.29 [1.29] 1.29 [1.29]
8.2 Incubation/production centre 0.09 [0.09] 0.09 [0.09]
9. Project Management
10.1 Rehabilitation of Offices 0.02 [0.02] 0.02 [0.02]
B. GOODS
1. Equipment for Colleges - MUK 6.14 [6.14] 6.14 [6.14]
2. Equipment for Colleges - KYU 3.56 [3.56] 3.56 [3.56]
3. Equipment for Departments - MUST 1.59 [1.59] 1.59 [1.59]
4. Equipment for Colleges - GU 0.97 [0.97] 0.97 [0.97]
5. Equipment for Colleges - BU 0.97 [0.97] 0.97 [0.97]
6. Equipment for Departments - MU 0.16 [0.16] 0.16 [0.16]
7. Equipment for Departments - MUBS 0.22 [0.22] 0.22 [0.22]
8. Equipment for Departments - UMI 0.18 [0.18] 0.18 [0.18]
