Documentof The WorldBank FOR OFFICIAL USE ONLY ReportNo. 24513-KE PROJECTAPPRAISAL DOCUMENT ONA PROPOSEDGRANT INTHEAMOUNT OFSDR2MILLION (US$2.7 MILLIONEQUIVALENT) TO THE REPUBLIC OF KENYA FORTHE DEVELOPMENT LEARNING CENTREPROJECT September 26,2003 OperationalQuality and KnowledgeServices CountryDepartment5 Africa RegionalOffice This document has a restricteddistributionandmay be used by recipientsonly inthe performanceof their officialduties. Its contents may nototherwisebe disclosedwithout WorldBankauthorization. CURRENCY EQUIVALENTS (Exchange Rate Effective August 20, 2003) Currency Unit = Kenya Shillings (KES) K E S 1 = US$ 0.013 US$1 = KES 75.87 FISCAL YEAR July 1- - June 30 ABBREVIATIONS AND ACRONYMS AERC African Economic Research Consortium AVU African Virtual University CAS Country Assistance Strategy C.I.F. Cost, insuranceand freight co Country Office DARE Decentralized HIViAIDS andReproductiveHealth DFID Department for International Development DL Distance Learning DLC Development Learning Center DPM Directorate of PersonnelManagement EU EuropeanUnion FAWE Forum for African Women Educationists FMR Financial MonitoringReport FMS Financial Management System GDLN Global DevelopmentLearningNetwork GOK Government of Kenya HRD Human Resources Division IBRD Intemational Bank for Reconstructionand Development ICB International Competitive Bidding IDA International Development Association ISG InformationSolutions Group IT InformationTechnology JICA Japan Intemational Co-operationAgency KIA Kenya Institute of Administration (host institution) LIL Learning and Innovation Loan NCB National Competitive Bidding N S National Shopping M&E Monitoring and Evaluation MOF Ministry of Finance MOP Manualof Procedures MOU Memorandum of Understanding MORPW Ministry of Roads & Public Works PAR ProcurementAssessment Review PC Project Coordinator PCU Project Coordination Unit PIP Project ImplementationPlan PMR Project ManagementReport PPF Project PreparationFacility PSR Project Supervision Report PSM - TA Public Sector ManagementTechnical Assistance Project FOROFFICIAL USEONLY QCBS Quality and Cost BasedSelection SA SpecialAccount SDR SpecialDrawingRights SOE(s) Statement(s) of Expenditure UNDP UnitedNations DevelopmentProgramme UNEP UnitedNations EnvironmentProgramme USAID United States Agency for International Development VSAT Very Small Aperture Terminal WBI World Bank Institute WE3 World Bank Vice President: Callisto E.Madavo Country Director: Makhtar Diop Sector Director: John A. Roome Task Team Leader/Task Manager: Catherine WanjikuGachukia This document has a restricted distribution and may beusedby recipients only in the performanceof their official duties. Its contents may not beotherwise disclosed without World Bank authorization. KENYA DEVELOPMENTLEARNING CENTRE PROJECT CONTENTS A LILJustification . Page 2 2. 1. What i s to be learned (why the piloting)?............................................................................ How are the results going to be used(vis a vis CAS objectives and any follow-on 3 operation)? 3. Other countries or situations where similar efforts have shownpromise............................ 4 B Structure of the Pilot . 4 2. Outcome-leveltest to be conducted.................................................................................... 1. How will the learning take place?....................................................................................... 5 5 4. LearningExpectations to be Documented inthe Pilot........................................................ 3. Steps Involved inImplementingthe Pilot........................................................................... 5 5. Triggers for a Follow-on Operation.................................................................................... 7 6. Results-basedMonitoringand Evaluation Arrangements.................................................. 7 C Components and their ImplementationArrangements . 8 2. Implementation arrangements........................................................................................... 1. Project components........................................................................................................... 8 9 b. FinancialManagement................................................................................................. a. Procurement................................................................................................................. 9 c. Other........................................................................................................................... 9 D Risks . 1. Social and EnvironmentalRisks...................................................................................... 9 9 b. Other socialrisks........................................................................................................ a. Safeguard Policies...................................................................................................... 10 2. Other Risks...................................................................................................................... 10 E Main Grant Conditions . 11 2. Other................................................................................................................................ 1. Effectiveness Conditions.................................................................................................. 11 F Readinessfor Implementation.............................................................................................. 11 G Compliance with Bank Policies............................................................................................ .. 12 Annexes Annex 1. Project Design Summary............................................................................................. 13 17 Annex 3. Annex 2. Project Description...................................................................................................... EstimatedProject Costs.............................................................................................. 25 27 Annex 5. Annex 4. Financial Management................................................................................................. 31 Annex 6. Project Processing Schedule....................................................................................... 32 Annex 7. Procurement and DisbursementArrangements........................................................... 39 Annex 8. Documents inthe Project File..................................................................................... Statement of Loans and Credits.................................................................................. 40 Annex 9. Country at a Glance..................................................................................................... 42 Annex 10. TOR - Project Coordinator ...................................................................................... 44 Annex 11. Draft M&EPlan .................................................................................................... 46 Annex 12. Implementation - Summary Information ................................................................... 56 Annex 13. Financial Model ...................................................................................................... 58 KENYA Development Learning Centre Project Project AppraisalDocument Africa Regional Office AFCO5 Date: September 26, 2003 Team Leader: Catherine Wanjiku Gachukia Sector Director: John A. Roome Sector(s): General education sector (50%), Generalpublic Zountry Director: Makhtar Diop administration sector (50%) Project ID: PO78209 Theme(s): Administrative and civil service reform (P) Lending Instrument: Learning and InnovationLoan (LIL) Project Financing Data P ~ [ ]Loan [ ] Credit [XI Grant [ ]Guarantee [ ] Other: For LoanslCreditslOthers: Amount (US$m):2.7 3ORROWEWRECIPIENT 0.05 1 0.10 I 0.15 [DAGRANT FOR POOREST COUNTRY 2.70 LOCAL SOURCES OF BORROWING COUNTRY 0.33 0.98 Responsible agency: OFFICE OF THE PRESIDENT, DIRECTORATE OF PERSONNEL MANAGEMENT Address: P. 0.Box 30050, Nairobi, Kenya Contact Person: Ms.Njoki Kahiga, Senior Assistant Director, Project Coordinator Tel: (254-2) 227411 ext. 22429 Fax: (254-2) 336545 Email: dlc@africaonline.co.ke Other Agency(ies): Development Learning Centre (DLC) Board Address: c/o The Directorate of Personnel Management Contact Person: Mr.S. P. Njau, Chair, DLC Board Tel: 230653 Fax: 210192 Email: Project implementation period: Five years Expected effectivenessdate: 1213112003 Expected closing date: 1213112008 C I P m F" RS"Ulrn 2w A. LIL Justification 1. What is to be learned(why the piloting)? The main purpose is to test the effectiveness and sustainability o f a development learning centre inKenya as part o f a global knowledge-sharing network to strengthen the capacity o f public, private and civil society decision makers and implementers to design, plan, and manage social and economic development policies and programs. The D L C i s a new concept for Kenya. It offers world-class training, which to date, has only been available to Kenyans by studies abroad. In addition, through the Global Development Learning Network (GDLN), the Centre should reach more people in the country at lower cost than traditional face-to-face training, thus expanding impact and reach. The Centre's internet services, still rare in the public service, will complement the video, audio, and data services to deliver course material, to allow virtual discussion and e-mail, and to provide participants with access to other World Wide Web resources. The Center will strive to match demand for training to the most appropriate local or international supplier institutions, both in terms o f content and schedule o f availability. I t also brings into the country a unique regional and global live interaction amongst policy makers from many countries, disciplines, and sectors, regardless of national boundaries or time zones. The Government o f Kenya (GOK) is keen to pilot this new knowledge tool as a means o f promoting capacity building and enhancing regional and international policy and strategy dialogue. Training suppliers will include WBI, major universities, private corporations, and technical organizations around the world. The Government has expressed interest in training courses that support the ongoing improvement initiatives for the civil service and, in particular, reforms in areas such as health, local government, legal, and education, as well as in fimctions related to procurement, accounting, service delivery, restructuring, budgeting, performance management, and M&E. The training needs for the HIV/AIDS, DARE, PSM and other Bank financed projects cover technical, policy, and management areas that can also be supported by the D L C without the cost o f travel. Almost all the World Bank funded projects in Kenya support capacity building efforts at both the project and program or sector wide levels. One o f the best uses o f the DLC will be to link these teams with other teams in and out o f Amca to share experiences. As experience has shown elsewhere, an important segment of the market for the D L C services will also come from the NGOs, civil society, and the private sector. A detailed Training Needs assessment, covering the public and private sectors and civil society, will be conducted by the Directorate of Personnel (DPM) as input for the Centre's business plan. The consultant undertalung the study will have access to similar studies conducted in other countries, such as Tanzania and Uganda, to give Kenya the advantage o f experience inother countries. The draft Public Service Training and Capacity Building Policy and the Strategy for Performance Improvement in the Public Service provide some guidance on the Government's objectives, approach, and priority reforms. However, it i s not feasible to incorporate the contents o f these strategies in the project's design as they do not contain quantitative and qualitative indicators nor detailed training needs information from government ministries and departments. This shortfall should be addressed by the training needs assessment study and probably, in collaboration with DPM, negotiated agreements with ministries, departments, etc., for specific types and volumes o f training that can be provided over a given time. An important objective o f the DLC is to buildlocal institutional capacity to use the GDLN as a means o f - 2 - delivering activities from Kenya to other members o f the network. One o f the unique strengths o f the GDLNnetwork is that every DLC can be the source as well as the recipient o f learning activities. Inthe case o f Kenya, the D L C would play a particularly strong role in helping to meet the learning needs o f others in Africa (and elsewhere). Nairobi is an exceptionally strong location o f many potential GDLN providers - KIA, UNEP, FAWE, AW, and AERC, for example. These institutions would be strongly encouraged to use the network, and the facilities at the DLC, and their "transmissions" could become a significant source o f D L C revenue. 2. How are the results goingto be used (vis a vis CAS objectives and any follow-on operation)? Document number: NO.18391 KE (IDNR98-137) - Date of latest CAS discussion: 09/24/1998 The D L C i s not identified in the most recent CAS as a specific capacity building tool. Originally it was designed as a component o f the ongoing Public Sector Management Technical Assistance (PSM-TA) Project but was dropped duringNegotiations when the credit amount was scaled down. The results o f the project would support the CAS objective o f "a more responsive and effective public sector" by facilitating increased dissemination and application o f knowledge and cross-country experience in support of reform. The impact o f the DLC inknowledge sharing and application will be continuously assessed and shared with government and other stakeholders. I t is expected that, following the pilot's closure, the Centre will continue to deepen and to expand the benefits, and in particular its services and reach, especially for those located out o f Nairobi. The learning gained and shared from the pilot should also help to inform the design and implementation o f public sector capacity building programs. This information would be o f interest to Government, the Bank, and various other partners and stakeholders involved in capacity building efforts. An example o f a useful lesson from the pilot would be the design and management o f a training evaluation process. This is particularly relevant for D P M during implementation o f its Public Service and Capacity Building Policy and The Strategyfor Performance Improvement in the Public Service. Other lessons that have future replication potential include the role and value o f training in capacity building, the prospects o f balancing a public good with profit concerns, the conditions necessary for successfully building local institutions and participation, and the mechanics and usefulness o f an institutionalized M&E process. Furthermore, in establishing the viability o f the Centre, the project will identify mechanisms and best practices in the context o f a developing country where resources are minimal, governing structures weak, and training coordination mechanisms poor, among other constraints. There are two main reasons justifying the funding o f the proposed project in its entirety by a grant from IDA. These include overall country situation and the design o f the project, with its objective o f supporting a more responsive and effective public sector. First, Kenya is eligible for IDA Grants inFY04 as an IDA-only country with an annual per capita income o f under US$360. Second, at the project level, there i s expected to be substantial impact towards creating a more responsive and effective public sector by facilitating increased dissemination and application o f knowledge and cross-country experience in support o f reform. It i s expected that the learning gained and shared from the pilot should help to inform the design and implementation o f public sector capacity building programs. A new CAS is planned for FY04, and it will present a strategy for the use o f IDA grants inKenya. The new Government has committed itself to fighting corruption and reducing poverty through economic - 3 - recovery. I t is strategically important to IDA to support the new Government's efforts, and to provide financing as a grant instead o f a credit would signal the Bank's strong support. 3. Other countries or situations where similar efforts have shown promise. The GDLNhas completed its second year o f operation with some success in developing programming and content. Already operational in 8 countries in Africa and in more than 15 around the world, the Development Learning Centers are today successful learning tools. After only one year o f operation, the D L C in Dakar has already reached the objectives o f the second year in terms o f operating costs recovery, the learning program and the number o f clients. The Centers o f Tanzania and Uganda use their facilities daily and have reached a use rate of almost 80%. With Mauritania, Guinea, Mozambique and Burkina Faso, Kenya will benefit from this new leaming network as part o f the third phase o f the GDLN deployment. Moreover, the D L C inNairobi will be part o f an Anglophone African DL network including Ghana, Ethiopia, Tanzania and Uganda. These four Centers benefit from a close relationship with the World Bank Institute (WBI) GDLN Services Department in Washington, DC. The WBI and other World Bank units deliver many learning activities themselves through the network. The GDLN Services Department, inaddition, facilitates provision o f activities from many other learning institutions, all over the world. These include other international agencies (such as UNAIDS and WHO), developing country learning institutions that deliver from other DLCs and universities inNorth America and Europe. As the Global Development Learning Network has been operational for only two years, it is very difficult to assess the impact o f the GDLN curriculum on the trainees in terms o f capacity building.The GDLN i s setting up a common activity monitoring system to get some qualitative feedback from the trainees. Innew GDLNprojects such as Burkina Faso, Mauritania, and Kenya, the M&E component is part o f the Project Design itself and will allow a better evaluation o f the impact o f the project o n participants. The main target audience o f the GDLN comprises of decision makers from the public sector and civil servants in general. However, due to the limited budget allocations available to governments, the public sector has not represented a large part o f the GDLN trainees. Nevertheless, the percentage number o f civil servant trainees i s growing and has reached an encouraging 50% in certain countries. Some GDLN Centers have now signed agreements with government administrations presenting the D L C and the GDLN as the main training tool for civil servants. The courses that have proved to be the most popular among public sector officials in the region include: "Gender, Health and Poverty", "Sustainable Development", "Public Resources Policies", "Macroeconomic Management", "Corruption", and "Rural Development and Food Security". B. Structure of the Pilot 1. How will learningtake place? The learning will take place through a structured pilot aimed at documenting the effectiveness, efficiency, impact, relevance, and sustainability o f the Centre. Success will be determined by the achievement o f critical performance indicators such as the demonstration o f financial viability, training relevance, learning, and application o f skills. An M&E system using a logical framework, performance indicator tools, and associated monitoring instruments will systematically measure the extent to which success has or has not been achieved. - 4 - The D L C i s being created as a public good to share development knowledge and information. It will be established by D P M and constructed in Nairobi on the Kenya Institute o f Administration campus during the first year o f the project. Thereafter, the project will support the operations o f the DLC (with costs on a decreasing basis) over the following three years. 2. Outcome-level test to be conducted The establishment of the D L C is expected to result in an effective and sustainable global knowledge-sharing institution that will provide relevant training opportunities and, ultimately, enhance the capacities o f civil servants and key decision makers inKenya. 3. Steps involved in conducting the pilot The five-year pilot will be undertaken utilizing the following steps: The following key preparatory activities were completed and found satisfactory by the appraisal mission: DPM's project management staffing, institutional arrangements and procurement and financial management, including the Project Implementation Plan, Procurement Plan and Manual o f Procedures documents. Other preparatory activities that are taking place include a market study, architectural designs and biddingdocuments, and increased computerization o f the financial management system. Prior to negotiations the D L C was gazetted as a legal autonomous entity and the Board made operational with a Chair selected. Prior to effectiveness: Project Account with initial deposit; Subsidiary Agreement between Govemment and the D L C signed; and Attorney Generals legal opinion received. During the first year (year 1) of the project, the DLC's construction, installation, and recruitment completed. With the D L C staff in place, the first year's business planprepared (based on market study findings) and DLC/DPM, staff complete M&E training as well as an M&E implementation plan by the end of the fourth quarter. A Memorandum o fUnderstanding is to be signed betweenthe D L C and GDLN. DLC inbusiness by the beginning o f the secondyear with project support for a total o f four years (year 2-5). Annual business plans prepared, quarterly and annual reviews conducted and recorded in quarterly and annual progress reports, and annual financial audits undertaken. Mid-termevaluation inthe thirdyear (3rd quarter) o fthe project. End-of Project evaluation at the end o f the fifth year. 4. Learning expectations to be documented in the pilot IXI Economic Technical 0 Social IXI Participation Financial Institutional Environmental IXI Other Economic: The project is expected to demonstrate an economically viable method o f delivering training as compared to the current and expensive practice o f sending officials abroad for specialized training or the import o f international trainers. In addition, more people should have access to training in a wider variety o f fields leading to a more effective use o f govemment funds. Technical: The project will introduce advanced communications technologies to the country. Use, access and knowledge o f the internet, and to a less extent, email, is currently very limited inthe public service with video communication practically unknown in both the private and public sectors. Through the project's training and virtual discussion opportunities, awareness on information technology and its value will be - 5 - enhanced. The Government's Information Technology Department sees the entry o f this project as a means for 'paving the way' or promoting the acceptance and use o f other forms o f modem technology in Kenya. The new state-of-the-art video-conferencing facility will provide practical leaming opportunities for local engineers/IT technicians/instructors on its operations, maintenance, and installation. Financial: The Center is expected to meet the operating expenses o f the Center (excluding amortization) up to 20%, 40%, 60% and 80% respectively during the first four years from generated income, and to ensure at least the financial equilibrium as early as the fifth year o f operation (details inAnnex 13). Institutional: The success o f the pilot relies upon building the institutional capacity o f the D L C to establish an effective, efficient, relevant, and sustainable centre which has impact. Balancing the vision o f the D L C as a public good and, therefore, not created to make profit, with the need to run the Centre on a recognized business basis to ensure viability, also presents useful learning opportunities. In addition, institutional challenges for the project include building the capacity o f project management within DPM, establishing practical means with Government with which to support implementation o f the public service training strategy, establishing an effective and well represented Board (consisting o f private sector, government, civil society representatives) and ensuring satisfactory working arrangements between the "parent", DPM, and the DLC. Finally, building the institutional capacity o f local institutions to use the GDLN as a means o f expanding, improving and delivering training activities provides a valuable learning opportunity for the local institutions and the recipient clients within and outside the country who will benefit from the locally provided training. Participatow: Participation is required at various levels. This includes: (i)participationoflocalandinternational trainingproviders asusersandinidentifyingtrainingavailable, availing courses, and developing content. Their participation is also important for the evaluation, planning, and review processes; (ii)participationfrom the clientpopulation/agencies etc. - as - civil society, civil service, private sector, projects, users and intraining needs assessments, market surveys, and monitoring and evaluation; (iii)participation o f Board members inmonitoring, decisionmaking, and overall support; (iv) participation o f D P M as users and infinancing, monitoring and evaluation, project management, and in implementing the public service training strategy; (v) participation o f KIA inproviding host facilities for the DLC, inactively supporting the Centre through the Board, in making suitable working arrangements between the two institutions as well as its role as a training institution; and (vi) participation o f donors as users o f the Centre and in fund raising, knowledge sharing, and technical assistance. Other - Monitoring, & Evaluation: The project has introducedM&Eas an important integrated institutional process rather than as a discrete activity. It is expected that useful information will be documented on the usefulness o f the M&E implementation plan and where and how the process has changed to improve evaluation practice and its value to the project. - 6 - 5. Triggers for a follow-on operation A traditional follow-on operation is not envisaged. However, it is expected that the Centre will deepen and expand the benefits, and in particular its services and reach, particularly for those located out o f Nairobi. Specifically the Centre should: expand the coverage o f clients, training courses and the dissemination o f information; deepen training programs for previous individual and institutional clients; strengthen bulk service package agreements to deliver broad training requirements or flagship courses to selected institutions; and strengthen the training, information sharing, and M&E strategies based on the end-of-project evaluation. This growth would bejustifiedif the pilot attains financial sustainability by the fourth year o f operation; the monitoring and evaluation results show that the training program is relevant and meets local demand; the monitoring and evaluation results show that the Centre training program has improved the capacities (knowledge, s l l l s or attitudes) o f trainees to design, plan and manage social, economic and development policies and programs; and positive feedback on the value and usefulness o f the information shared i s received from DLC, DPM, and local and intemational stakeholders. Results-based Monitoring and Evaluation System Institutional Strengthening: M&E training for the newly recruited DLC team and the D P M Project Coordinator will be required to ensure adequate institutional M&E capacity in the two key organizations. The consultant conducting the training will also facilitate the development o f a M&E plan with wider participation from key stakeholders in World Bank, DPM, and other partner organizations. The training and the M&E plan should be completed within the first two months o f the Director's appointment. M&E Scope, Objective and Use: A results based management approach will be utilized and supported by a practical M&E system that will generate information in the five areas o f performance - efficiency, effectiveness, relevance, sustainability and impact. It should enable an in-depth understanding of key successes and failures and to allow for the use o f lessons learnt and experiences gained at local and global levels. It will also provide a means for improving service delivery, planning, and allocating resources, assessing beneficiary responses, and demonstrating results as part o f accountability to key stakeholders. The information generated will answer important evaluation questions at all levels o f the project design hierarchy. I t will be planned in advance and organized in a manner that provides a "road map" for (a) monitoring and evaluation as an ongoing process throughout the project and (b) end-of-project evaluation results. A preliminary "road map" or M&E plan has been developed to facilitate and strengthen the design o f the project. This draft i s presented in Annex 11. It contains a comprehensive list o f what needs to be evaluated (including the project risks), the M&E information required, as well as when, how, and by whom it will be used, collected, and analyzed. Duringthe M&Eplanning session mentionedabove, stakeholders will review the draft M&Eplan to refine: (a) key evaluation questions, (b) what needs to be monitored, (c) what performance indicators should be chosen and (d) what data needs to be collected to do that; (e) who will collect it, (f) at what frequency, (g) and at what levels; (h) whether the institutions have the ability and personnel to do so; (i) whether the exercise i s cost effective; and 0) ifthe results will be adequate to determine whether the pilot has or has not succeeded. The session will also introduce a new column in the matrix that identifies the forms, training, expertise, information management and resources required to implement the M&E. Finally, the planning - 7 - process will also update, refine, and make use o f the logical framework (preliminary draft in Annex 1) to measure project impacts, outcomes, outputs and inputs. Organization and Management: It is expected that much o f the M&E information generation, analyses, and reporting, which includes critical business information, will have to be conducted by the DLC, particularly at the operational level. DPMis responsible for ensuring that M&E for the project as a whole, whether it i s implemented by DLC or DPM, works successfully and produces the desired results. The M&E plan clearly indicates where, how, and when either D P M or DLC is responsible for a particular task. Most o f the D L C activities are routine, repeated and less costly then the tasks managed by DPM. Activities managed by D P M include the processes involved in M&Etraining, the development o f the M&E plan, the hiring o f consultants and the regular review o f the implementation performance o f the M&E plan. Business plans and quarterly and annual progress reports, as well as annual audit reports will form the main reporting mechanism for the project. A 'fuller description o f the organizational management is provided inAnnex 2, Component 3, M&E. C. Project Components and Implementation Arrangements 1. LIL Components (i)ConstructionandInstallation: Thiscomponentwillsetuptheinstitutional,physicalandhuman resource requirements for the DLC. It will be implementedby DPM. (ii)LCOperationsSupport: ThecomponentwillineffectoperationalizetheDLCandassistin D establishing its viability and training program. It will be implementedby the DLC. Indicative Bank- Yo of Component costs % of financing Bank- (US$M) Total (US$M) financing 1. Construction & Installation 1.38 36.0 1.30 48.1 2. D L C Operations Support 1.90 49.6 0.85 31.5 3. Monitoring & Evaluation 0.15 3.9 0.15 5.6 4. Project Preparation (PPF) 0.15 3.9 0.15 5.6 5. Unallocated 0.25 6.5 0.25 9.3 Total Project Costs 3.83 100.0 2.70 100.0 Total FinancingRequired 3.83 100.0 2.70 100.0 2. ImplementationArrangements D P M will supervise the project preparation and implementation and will consequently be responsible to IDA for the overall project. Its control over the activities o f the DLC will essentially be o f a legal nature with respect to the obligations o f the Grant Agreement. Specifically, D P M will be responsible for ensuring the successful performance o f the project, consolidating the annual project accounts, ensuring the timely submission o f annual audits, processing the annual GOK budget allocation for the project, promoting effective linkages with the civil service needs, and for monitoring and evaluation. A Project Coordinator, from the Human Resources Department o f DPM, supported by an Accountant and Procurement Officer will manage DPM's responsibilities. Components 1 and 3 are largely the direct responsibility o f DPM. - 8 - DLC's core responsibility i s to set up and runan effective Center that i s self sustaining inconsultation with the Board. DLC is directly responsible for Component 2 while working in close collaboration with DPM on Component C. A Subsidiary Agreement outlining the roles and responsibilities will be drawn between DPM and the DLC. TORS for all key positions in both D P M and the D L C should have clear performance criteria and standards, including explicit provisions for the exit o f non-performers. a. Procurement The procurement for the activities identified in both the PPF and Component 1 o f the Project (i.e. construction, purchase and installation o f equipment, Director's recruitment, etc.) are being handled by D P M led by the Supplies Officer designated for the project. Once the D L C i s inbusiness, the procurement responsibility as described in Component 2, will be led by the Centre's Administrative Assistant. The individual hired for the Administrative Assistant post should have prior procurement experience and will undergo hrther procurement training with the Bank's guidance. The procurement arrangements required for Component 3, M&E, which i s managed by the DPM, will continue to be led by the DPM's Supplies Officer. A close working relationship will be requiredbetween the Supplies Officer and the Administrative Assistant. b. Financial Management The Accounting Unit in D P M was identified for the purpose o f providing financial management services for Component 1 o f the project. The Unit will also take responsibility for the accountability o f funds allocated to the M&E Component 3 under DPM's responsibility. The selection and appointment o f key project staff, particularly the Project Coordinator, Procurement Officer and Project Accountant, was completed during project preparation in view o f the importance o f their early engagement. The PCU has documented operational references in the form o f a Project Implementation Plan, a Procurement Plan and a Financial Procedures Manual which are critical for project implementation. The Bank's financial management assessment report o f March 2003 confirms that adequate financial systems and intemal controls are in place to ensure project assets are safe guarded, and that reliable and timely financial information and reports are generated for use in decision making. Financial reporting, analysis and verification o f financial transaction through audits will be undertaken periodically and timely corrective actions taken where weaknesses are identified. These measures will enable the project management to comply with statutory requirements as well as with the Bank Financial Covenants. More detailed information i s provided in Annex 4, Financial Management, and the Financial Management Assessment Report o f March 2003. c. Other NIA. D. Risks 1. Social and Environmental Risk a. Safeguard Policies N o safeguard policy beentriggered. - 9 - Environmental Category: C (Not Required) b. Other Social Risks NIA. 2. Other (external, reflecting the failure of the assumptions in the fourth column of Annex 1) Risk Risk Rating Risk Mitigation Measure Host institution, KIA, and Govt interfere N Independent registration o f the DLC, well and do not respect the independence of the represented Board, private sector management, D L C mddefinedroles andresponsibilities contained insubsidiary agreements Government ministries and agencies do S A circular letter from DPM sent to the not have access to adequate training funds ministries inviting them to examine training for D L C training budget items under their current allocations and to use the services o f the D L C whenever practical shortly after the appointment o f the Director. Government, civil society, and training M A strategy prepared by D L C to promote greater institutions do not actively collaborate or participation is included inthe annual business contribute to the program plans The Board is neither responsive nor N Ensure appointment o f key stakeholders and committed respected individuals Availability of base line information N Identify relevant base line information needs in an M&Eplan prepared within two months o f the Director's appointment Competition from current or future N Environment scanned continuously and inthe training providers adversely affects the annual market studies with a responsive strategy Centre contained inthe business plans From Components to Outputs Govt. counterpart funds, funds flow, M Recommendthe project prepares its own procurement, and other critical procedures payment applications and ensure timely and processes are delayed and unreliable identification o f problems through traclung systems which are addressed or flagged to govt. and WB management immediately Overall Risk Rating M Risk Rating - H (High Risk), S (Substantial Ri: 1,M (Modest Risk), PNegligible or Low Risk) - 1 0 - E. Main Grant Conditions 1. Effectiveness Condition 1. Subsidiary Agreement between the Government and the D L C defining the conditions for IDA grant disbursements infavor o f the Center and the reciprocal commitments o f the two parties adopted. 2. The ProjectAccount has been opened andthe Initial Deposit deposited. 2. Other (classify according to covenant types used inthe Legal Agreements.) 3. DLC's Quarterly Activity Report submitted to the DLC Board and IDA within a month o f the end o f each quarter. 4. DLC's Annual Progress submitted to the D L C Board and IDA within three months o f the end of each fiscal year. 5. Financial Audit Report o f the Center's accounts submitted to the D L C Board and IDA within six months o f the end of each fiscal year. F. Readiness for Implementation 0 1.a) Theengineeringdesigndocumentsforthefirstyear's activitiesarecompleteandreadyforthestart o f project implementation. ixI 1. b) Notapplicable. [xi 2. The procurement documents for the first six months' activities are complete andready for the start o f project implementation; and a framework has been established for agreement on standard bidding documents that will be used for ongoing procurement throughout the life o f LIL [xi 3. The LIL'sImplementationPlanhas beenappraised and foundto berealistic and o f satisfactory quality. [74. The following items are lacking andare discussed under loanconditions (Section G): - 11 - G. Compliancewith Bank Pollcleo @ 1, Thisproject complieswithallapplicable Bankpolicies D2.ThefollowingexcaptionstoBankpolicies&Erecommendedfor rrpproval. Theprojectcamplieswith all other applicable Bank policies. Team Leader SecfJorD I ~ G W - 12 - Annex 1: Project Design Summary KENYA: Development Learning Centre Project KeyIndicators Performance Data CollectionStrategy Hierarchy of Objectives CriticalAssumptions Sector-relatedCAS Goal: sector Indicators: iectorl country reports: From Goal to Bank Mission) 9 more responsiveand The sustained improvementin kcasional ESWs & country :ffective public sector Iublic service delivery eports -ollow-on Development Dbjective: To support public sector mprovementinthe design %eforeand after evaluationof hhancing skills of individual :apacity building initiatives md implementationo fpublic ample case studies ivil servants will result in a kom the learning gainedand :ectorcapacity building nore responsiveand effective hroughdeepening and Irograms iublic sector :xpanding the benefits, and in ,articular, the services and .eachof the Centre Jroject Development 3utcome IImpact 'roject reports: from Objective to Goal) 3bjective: ndicators: To test the effectiveness and 0 At least 40% of 're and Post survey reports zlientshavethe incentives iustainabilityof a participantsfrom Y1 and rom level 2 and 3 training md environmentto apply levelopmentlearning centre 60% from Y3 have :valuations(KirkPatrick's earned skills inthe nKenyaas part o f a global improvedcapacity to nethodologyoutlined in vorkplace cnowledge-sharingnetwork to design, plan, and manage innex 11, draft M&E Plan) ;trengthenthe capacity o f social and economic wblic, private and civil development policies and IPMIDLC Annual Reports ;ociety decisionmakersand programs asjudgedby mplementers to design, plan bothparticipantsand NB SupervisionReports md manage social and their supervisors xonomic development did-term & final evaluation Jolicies and programs 0 At least 40% from Y 1, eports 50% from Y2,60% from Y3 and 70% of the sampledparticipantshave improvedknowledge and/or skills or changed attitude as a result o f the training 0 Centre i s self-sustaining by Y5 o f operation - 1 3 - Output from each 3utput Indicators: 'reject reports: from Outputs to Objective) Component: Output 1:DLC adequately 0 Highly effective Project I P M quarterly and final lost institution,KIA, and equipped to providethe Coordinator supportedby irogress reports 3ovt. respectthe requiredservices an efficientAccountant ndependenceof the DLC and ProcurementOfficer NB SupervisionReports inplace at DPM 0 DLC's independent aid-term & final evaluation registrationand Board 'eports set-up completed 0 Centre's landallocatedby host institutionand facility built and equipped within the time and standards required. 0 High qualityDLC staff recruited Output 2: DLC operational 0 Number o f civil servants ILC quarterlylannualreports 3overnmentministries and and inuse by civil servants trained (target growth igencieshave access to andkey decisionmakers numbers for each year 'ost customer satisfaction idequatetrainingbudget engaged in the planningand tbd) urvey results(KirkPatrick's illocationsfor the DLC implementationo f Number ofprivate sector, eve11methodology) raining social-economicdevelopment NGO, or civil society policies andprograms participants (target 2nnual audit reports 3overnment, civil society, and growthnumbersfor each raininginstitutionsactively year tbd) NB SupervisionReports :ollaborating and contributing Output 2.1: An effective and Numberandtype of o the program needsbasedtrainingprogram training courses (tbd) aid-term & final evaluation establishedand implemented offeredby DLC that .eports The Board is responsiveand to enhancethe skills and correspondto the :ommitted performanceof civil servants identifiedneeds of the market study, the national 2ompetition from current or trainingstrategy, and h i r e trainingproviders does Output 2.2: A viable, projects (target % tbd) lot adversely affect the Centre self-sustaining andwell 0 % (tbd) of clients having managedinstitution declaredthemselves establishedto provide relevant satisfiedwith the quality highquality services of the services 0 % (tbd) of Government andprivate sector officials willing to pay for the servicesin comparisonto those subsidized. 0 % (tbd) o f civil servants, private sector andNGO participantsreturningfor - 1 4 - new or follow-up courses each year 0 Increasinguse (no. per year tbd) o f the DLC by Kenyan institutions as a center for delivering leaming activities to partner centres 0 Cost recovery at least at 20% o f the operating costs for Y1, 40% for Y2, 60% for Y3, 80% for Y4 and Centre is self sustaining by Year 5 0 Utilization rates are at least : 15%, 25%, 40%, 50%, and 65% for each of the first five years respectively htput 3: A mechanism rimely and comprehensive d&E Plan lvailability o f base line istablished and utilized to irogress reports and business nformation inable an in-depth ilans that contain M&E d&E review consultancy inderstanding o f key nformation at all levels eport (Y2) uccesses and failures and to llow for the use o f lessons k t u a l implementation o f >LCAnnualIQuarterly earnt and experiences gained vl&E activities are delivered eports .tlocal and global levels )ntime and within the ,equirements set in the M&E >PM review comments Iutput 3.1: M&E capacity ilan quarterlyiannual) ieeds assessment undertaken .ndprogram designed and 'ositive feedback received on NB Supervision Reports mplemented to address needs he value and usefulness o f he information from the DLC did-term & final evaluation htput 3.2: An M&E system indDPM staff and local and eports hat is realistic, effective and ntemational stakeholders irovides information at both oca1and global levels 'roject Components I nputs: (budget for each 'reject reports: from Components to ;ub-components: :omponent) . DLC Construction and 3utputs) JS$1.38111 IPMIDLC Quarterly reports 3ovt. counterpart funds, nstallation imds flow, procurement, and NB Supervision Reports Ithercritical procedures and irocesses are timely and lnnual audit reports .eliable :. DLC Operations Support JSSI .90m IPMIDLC Quarterly reports NB Supervision Reports lnnual audit reports -15- i. Monitoring and Evaluation DPMIDLC Quarterlyreports WB SupervisionReports Annual audit reports -16- Annex 2: Detailed Project Description KENYA: Development Learning Centre Project By Component: Project Component 1 US$1.38 million - 1. Construction and Installation: Objectives& Institutional Arrangements The objective o f this component i s to set up the DLC's institutional, physical, and human resources requirements duringthe first year o f the project and prior to the start up o f the DLC's operations (year 2-5) as described below in Component 2. The Directorate o f Personnel Management (DPM), Office o f the President, i s responsible for implementing this component under the leadership o f a Project Coordinator (TOR, Annex 10) from the Human Resources Division (HRD) supported by an Accountant and Procurement Officer. Specifically DPM's Project CoordinationUnit (PCU) will be managed by HRD. The D P M PCU will continue to have close worlung relations with the Public Sector Reform Project (PSM) because o f the shared capacity buildingobjectives. I......................................... I ,.j DLCBoard I ........................................................................................ DPM I I I I I I i I ..... ....................... DLC PCU Accoiintmt. II I Activities The following activities will commence onproject effectiveness: (a) Construction o f the DLC facility which includes a video-conference room (30-person capacity); a computer room outfitted for 30 computer stations (hardware, software and Internet hook-up); a technical and administrative center; and electrical and telephone installations. D P M will work closely with the Ministry o f Roads and Public Works to obtain technical assistance inthe design and supervision. (b) Purchase and installation o f equipment which includes a small aperture terminal (VSAT - satellite communication terminal); video, telecommunications, and microprocessor equipment; office and classroom furniture; and various other equipment for operations and security. The procurement responsibility for the specialized equipment will be handled by World Bank following Government's authorization. The Bank, through ISG, will provide the assistance and expertise to procure, install and test the video-conferencing equipment. The GDLN will be built on top o f the existing World Bank satellite network which is managed and maintained by ISG and the WB Telecom operator. The precise method for the procurement and maintenance o f the specialized equipment i s to be defined and specified inwriting between the Government, ISG, and the intemational network operator. Part o f the equipment (local connectivity) will be maintained locally. D P M will seek technical assistance and support from the Information Technology Department in Treasury as and when needed. A light vehicle will be purchased for the HRD Project Coordination. The maintenance o f this vehicle will be entirely financed by the national counterpart. A second light vehicle and a minivan will be purchased for the DLC. The operating costs for the two DLC vehicles will be financed from the Operating Costs category o f the grant under component 2. -17- (c) Recruitment o f the Director and other key staff for the DLC. D P M will hire a recruitment agency to advertise, review and short-list suitable candidates for the Director's position. The Training Coordinator, IT Officer, Accountant, Office Administrator and Driver will be hired on a competitive basis, following advertisement, by the new Director, DLC. DPMReporting: (i)Quarterlyreportswithin 15daysfollowingtheendofeachquartertoIDA. (ii) componentreporttoIDAandwithin30daysfollowingcompletionofactivities (a), (b)and(c). Final The reports should review performance against the PIP. Project Component 2 US$1.90 million - 2. DLC OperationsSupport: Objective& Financing This component aims to assist the D L C begin operations and to become financially viable. The financing will cover operational costs on a decreasing basis over the first four years o f its operation. Institutional Arrangements - DLCBoard, DLC management, DPM, KIA The D L C will be governed by a Board comprising o f representatives from DPM, Ministry o f Finance and Planning, KIA, academic institutions, the private sector and civil society. The Board will be chaired by an official elected from among the members. The Board will oversee project implementation, through its Executive Secretariat. The Board is charged with monitoring management and deciding on development policy, approving the annual business plan and program o f activities, assessing the Centre's financial statements and providing recommendations to help it become financially self-sustaining. The Board i s also responsible for ensuring the maintenance o f a Director throughout the project whose competence and qualification are deemed satisfactory to IDA. Daily management o f the Centre will be entrusted to the Director selected on the basis o f proven experience in enterprise management or management o f a similar educational institution. The Director will be appointed by the D L C Board and will be assisted by a team comprising o f an IT Officer, a Training Coordinator, an Accountant and an Administrative Assistant. Particular attention should be paid to the interaction between DPM and the DLC. While D P M will preside over the creation o f the DLC, once the center i s operational, DPM becomes the primary client o f the D L C where the latter will offer capacity building activities to D P M itself and to the entire public sector with the support o f DPM. The preservation o f these relationships will require strict observance o f the MOUs. The Director, DLC, will work closely with the Project Coordinator, DPM, who will provide a supportive role and link to D P M as well as to the wider civil service. The Project Coordinator will not be responsible for supervising the performance o f the Director o f the D L C as the Director is primarily responsible and accountable for the management o f the D L C and will report to the Board. Nevertheless, the role o f the Project Coordinator i s important because o f hisher critical oversight function o f the Grant on behalf o f DPWGovernment and responsibility to ensure the DLC's positive impact on civil servants. The Project Coordinator must also work closely with the Director to carry out DPM's project coordination, auditing, financial, and M&E responsibilities. DPMwill also fimction as a member o f the DLC Board. - 1 8 - An agreement between the host institution, KIA, and the D L C Board should be adopted as soon as the Director i s on Board. Lessons from other countries indicate that caution is required to ensure that both D P M and KIA participate inthe D L C without inhibitingits growth. Thus, while KIA has provided the site and will execute an agreement with the D L C Board on which it will be represented, KIA can also offer content for training and paying participants to the DLC. In this regard, KIA is like any other training institution, agency, or private sector entity that can buy or sell its services to the DLC. i I_______________________________________------- ,___________________, I !,....................................................................... I D L C B o a r d j I DPM I I I I I I ......................................................................................... I I ! I 1- ; i HRD Accniint~int ;; II - : j ; I I Prnciiremcnt -DLCPCU ! I DLC ! I b I ! I Business Upon taking office, the Director will prepare a business plan based o n a market study identifying training needs from the public and private sectors. The business plan, to be submitted to the Board for approval and IDA for advice, will include: market data, budget and sources o f financing, training, and other services to be provided (lectures, seminars, etc.), source and programming o f training, rates for the different types o f training, the monitoring and evaluation plan (including the learning expectations), and financial projections in the form o f budget, operating account and market strategy. The business plan will be updated and approved by the Board on an annual basis. To this effect, the Centre will continue to assess demand, identify and program appropriate training courses, market the services o f the Centre, and increase its visibility in Kenya and abroad. The Director i s expected to meet the operating expenses o f the Centre (excluding amortization) up to 20%, 40%, 60% and 80% respectively during the first four years from generated income, and to ensure at least the financial equilibrium as early as the fifth year o f operation. The net cash flow (net result increased by amortization) will be used to renew, upgrade, or repair the Centre's equipment so as to continuously enhance the value o f the business. Although the Centre must be run on a business basis to promote sustainability, it must also take into account that it was created as a public good to share development knowledge and information. Therefore, an appropriate balance is required between the not-for-profit intention and the need for viability. Shortly upon taking office, the newly appointed Director should visit an established D L C inAfrica on a learning and familiarization study tour. StakeholdeidTraining Institutionsmevelopment Partners The Director will build up close relationships with other Kenyan-based institutions involved, or potentially involved in the provision o f ITC-facilitated distance learning. These include organizations that have already collaborated in the delivery o f GDLN programs to Kenya (e.g. AERC), organizations that are likely to wish to use the network in the future (e.g. UNEP) and the African Virtual University (AW), which i s also supported by the World Bank, whose work and experience will complement that o f the DLC, and which may sometimes wish to use the DLC's facilities. An important objective o f the D L C i s to build local institutional capacity to use the GDLN as a means o f delivering activities from Kenya to other members o f the network. These institutions would be strongly encouraged to use the network, and the facilities at the DLC, and their "transmissions" could become a significant source o f DLC revenue. The D L C will make every effort to provide local training providers with instructional design support to build their capacity to transmit courses usingthe Centre's facilities. Currently many o fthese institutionshave the contents but these are limitedto face-to-face delivery. - 19- Early consultations with training institution stakeholders, during project preparation, confirmed their interest in the Centre. The stakeholders wanted information on how soon the Centre would be approved. They stressed the importance o f autonomy and the selection and composition o f the Board. They were clear about the importance o f their involvement inthe ongoing planning, including an opportunity to review the Legal Notice, as a way to improve and strengthen the proposed project by adding their own highly relevant experience. The stakeholders were also interested in learning about the experience o f DLCs in other countries especially on securing content, and its bearing on sustainability. There was clear interest in the eventual expansion o f the D L C to reach especially rural communities. The participants provided examples o f ongoing IT-based capacity building initiatives (Economic Democracy Education Initiative, Kenya Education Network) and urged close coordination for synergy. The stakeholders noted that accessibility to KIA may be a constraint; to address this issue a minivan will be purchased by the DLC. The D L C should continue to emphasize the need for the stakeholders to support the D L C by using the center to access training that i s not readily available in Kenya, and to provide content for use by the Centre. Duringproject preparation a few members of the donor community were consulted. These included DFID, the British Council, the EU, USAID, UNDP, and JICA. The DLC should continue to expand these consultations to present the GDLN Program and the D L C project in Kenya. Of interest is the role donors could play to help the GDLN to develop and how donors can benefit from the GDLN as users of the network (global communication tool), as participants inDL sessions, or as partners o f the GDLNProgram. The D L C should maintain a dialogue with development partners with a view towards determining specific priority areas that the future GDLN Center should target and the services that the GDLN should offer for greater utilization o f the D L C by donors. Training A Memorandum o f Understanding between the DLC and GDLN will be signed. Many o f the courses offered by the D L C will be sourced from local or international providers. However, the Centre has dedicated funds for developing its own contents for new courses. These funds should be usedto develop both content and distance learning pedagogical skills to enable KIA and other Kenya-based institutions and local experts to deliver DL activities effectively through the network, helping to meet both Kenyan and network-wide demand for learning activities. The funds also give the Centre flexibility to provide programs that are biased towards and related to civil servants' needs as well as an opportunity to promote customized, performance related, and demand-driven supply. The funds should also help the D L C to respond better to training required but unavailable inthe local or global market. The D L C will actively support training requiredby projects and the Public Service Improvement Strategy. A strategy paper will be prepared by D P M to define the linkages between the DLC, the national public service training and the Government budget. Efforts will also be made, in collaboration with DPM, to negotiate agreements with ministries, departments, etc., for specific types and volumes o f training that can be provided over a given time. The D L C should make every effort to consider its potential support to the Government's PRSP, including the IT component o f the PRSP. It should also, following a review, link training programs to ongoing capacity building initiatives in the public sector, e.g. procurement, budget management, M&E, etc. One possible strategy for the DLC is to negotiate bulk service package agreements with a few large clients, probably 3 to 4, that will deliver flagship courses or broad training requirements. For example, courses could be identified by the Ministry o f Health for its personnel throughout the country. This systemic approach would reduce transaction costs, and increase sustainability, efficiency, and capacity building in the long term. A similar approach could be taken with donors (e.g. USAID, BritishCouncil) interested in - 20 - supporting specific training areas through bulk scholarships. M&E As described earlier, inaddition to the business plan, one o f the key tasks for the newly hiredteam will be to develop an M&E plan following training with DPM. The M&E system will help the Director to evaluate the performance o f the business plan and, in particular, efficiency, effectiveness, relevance, sustainability and impact. It will provide a means for improving service delivery, planning, and allocating resources, assessing beneficiary responses, and demonstrating results as part o f accountability to key stakeholders. It should also enable an in-depth understanding o f key successes and failures and allow for the use o f lessons learnt and experiences gained at local and global levels. Relevant information from the M&E plan should therefore be incorporated in the business plan and, where necessary, the M&E plan adjusted to ensure consistency with the businessplan. The D L C will continuously evaluate the design, delivery, contents, relevance, demand, effectiveness, learning failures, and barriers to greater participation, and ensure that the information i s used to adjust the strategy and to respond to changing needs (e.g. competition from other providers). OverallActivities In addition to its training agenda, the Centre's activities will also revolve around promoting the efficient use o f resources, improving reach, access and customer satisfaction, ensuring high quality and responsive services, establishing a business model that i s viable with sustainable and effective mechanisms (processes, structures, capacities), enhancing the DLC's staff development with training, and ensuring that the pilot's objectives are met through business planning and implementation. The D L C is expected to hold monthly management meetings with DPM, to administer quarterly Board meetings and to initiate regular consultative meetings with training institutions, government agencies, etc. DLCReporting (i) businessplanssubmittedtotheBoardandDPM,andcopiedtoIDA,twomonthsbeforethe Annual beginning o f each financial year and adopted by the Board by end o f the financial year. (ii)Quarterly (within 15 days following end o f the quarter) and annual progress reports (within 30 days following end o f the quarter) to the Board and DPM, and copied to IDA. Project Component 3 US$ 0.15 million - 3. Monitoring and Evaluation: Objectives & WorkingArrangements This component provides financing for the processes involved in the M&E training, development o f the M&E plan and the hire o f consultants required throughout the project. Although the component will be managed by DPM, a large proportion o f the M&E work, as demonstrated in the M&E plan (Annex 1I), will have to be generated, analyzed, and reported on by the DLC. An earlier option placing all M&E responsibilities under D P M was dropped because the distinction could result in an artificial distinction o f M&E from management and the delay o f critical businessinformation. The M&E component under D P M remains important because it promotes an external independent assessment outside DLC and provides a mechanism for the Government's continued commitment and involvement as the primary champion for the civil servants needs, training quality, and impact. It also reflects DPM's overall responsibility in ensuring - 21 - that M&E for the project, whether it is implemented by D L C or DPM, works successhlly and produces the desired results. The D L C will directly finance the M&E activities under its implementation from Component 2. Most o f these activities will be routine, repeated and less costly than the tasks financed by DPM. In some instances, D P M may be financing but the activity would be implemented by the DLC, or vice versa. Hence, a close and collaborative partnership between the DLC and DPM is needed to ensure the success o f the M&E system. Not all M&E act.ivities require financing; for example, a major task for D P M is to review key reports produced by D P M or consultants, and to ensure that the results are or have been used to outline new directions, policies and procedures with the change processes documented in subsequent reports. The preliminary M&E plan (Annex 11) clearly identifies either D P M or D L C as responsible for each specific M&Etask (including how and when). A snap shot o fthe organization and management flow is also shown inAnnex 11. DPMReporting (i)annualauditsfortheprojectsubmittedtoIDA,theBoard,andDLCwithinsixmonthsfollowingtheend o f the financial year. (ii)Formalcomments submitted quarterly (within15days followingDLC's submission ofthe quarterly progress report) and annually (within 20 days following DLC's submission o f the annual progress report) to DLC and IDA (copied to the Board) containing two key sections: (a) a presentation o f DPM's comments on the project's performance based on its review o f the progress reports, business plans, implementation o f the M&E plan; and (b) a description of DPM's involvement (in M&E and other activities) during the reporting period. These comments will be discussed during the monthly management D L C D P M meetings and the change process incorporated in subsequent progress reports prepared by DLC. Other DPMActivities D P M i s responsible for organizing the annual supervision missions, the mid-term review and the end-of-project evaluation. In addition, DPM, on an annual basis, will consolidate the annual project accounts and process the annual GOK budget project allocation. DPM, in collaboration with DLC, will take the lead indeveloping: (i)a strategy to further integrate and link the DLC with the Public Service Training Strategy and Government projects' training needs; and (ii)a contingency planto mitigate the riskof inadequate Government training funds for training. In addition, shortly after the appointment o f the Director, D P M will officially encourage all ministries to examine their current training budget allocations and use the services o f the D L C when practical. SUMMARY: For ease of reference, a summary o f the key implementation events and documents is provided in Annex 12. A matrix summarizing the different roles and responsibilities is also provided below. -22- Project Roles and Responsibilities DPM I DLC Component 1 DPM leads this componentto set up the Upontaking office, the Director will (year 1): institutional, physical and human embark on: Construction resource requirementsfor the DLC and Installation -- preparing recruiting the other staff Specific responsibilities include: a procurement plan for the first 12 months - planning, supervision and - establishing the accounting and financial implementation o f the civil works management system - purchase and installation o f all developing with DPM an M&Eplan equipment and a vehicle for the PCU and following training the Centre -- recruitment - preparing a business plan o f the Director -- buildingclose visiting other centers inthe region reporting relationships with other training institutions and donors or -developmentan partners Finalizing Agreement with KIA Component 2 )PM's control over the activities ofthe The DLC leads this component to set up (year 2-5): DLC )LC will essentially be o f a legal nature and run an effective Centre that is self Operations fithrespect to the obligations of the Grant sustaining in consultation with the support igreement. D P M will also promote Board ffective linkages with the civil service needs Inaddition to its core training agenda, the Centre's activities will also revolve around )PM is responsible for organizing the promoting the efficient use o f resources, nnual supervision missions, the mid-tem improving reach, access and customer zview and the end-of-project evaluation. satisfaction, ensuring highquality and Ither activities that are to be carried out by responsive services, establishing a busines l e D P M include consolidating the annual model that i s viable with sustainable and roject accounts, ensuring the timely effective mechanisms (processes, ubmission o f annual audits, andprocessing structures, capacities), and ensuring that i e annual GOK budget project allocation. the pilot's objectives are met through )PM, incollaboration with DLC, will take business planning and implementation l e lead indeveloping (i) a strategy to urther integrate and link the D L C with the The reporting and DLC/DPM managemen iovernment Training Strategy and meetings requirements are outlined in iovernment projects' training needs, and Annex 2 ii) a contingency plan to mitigate the risk o f iadequate Government training funds for .aining Component 3 )PMleads this component thatprovides A large proportion o f the M&Ework, as (year 1-5): bzancingfor theprocesses involved in demonstrated inthe M&Eplan will have Monitoring & ie M&E training, development of the to be generated, analyzed, and reported Evaluation I&Eplan, M&E implementation, and o n by the DLC. Collaboration with D P M iring of the consultants required - 23 - i s important throughout theproject. Specific responsibilities are identified in Collaboration with the DLC is important. the M&E Plan (Annex 11) Specific responsibilities are identified inthe M&EPlan (Annex 11) - 24 - Annex 3: Estimated Project Costs KENYA: Development Learning Centre Project A. Project Costs by Component Local IDA Foreign IDA Total Total IDA 4. CENTER RETROFITTINGAND EQUIPMENT I,Civil Works Civil Reconstruction 346,500 (315,000) 148,500 (135,000) 495,000 (450,000) Other Refitting 26,950 (24,500) 11,550 (10,500) 38,500 (35,000) 1. Network Access Equipment Global Connectivity 8,866 (8,866) 79,794 (79,794) 88,660 (88,660) Pedagogical Tools 26,505 (26,505) 238,541 (238,541) 265,046 (265,046) Local Connectivity 5,605 (5,605) 50,449 (50,449) 56,054 (56,054) 3. Other Equipment and Furniture Office Furniture 52,800 (48,O00) 13,200 (12,000) 66,000 (60,000) UPS and Generator 21,560 (19,600) 86,240 (78,400) 107,800 (98,000) Other Electrical/Electronic equipment 16,720 (15,200) 4,180 (3,800) 20,900 (19,000) Car 4,840 (4,400) 43,560 (39,600) 48,400 (44,000) Mini-bus 6,360 (6,000) 57,240 (54,000) 63,600 (60,000) Video and TV Equipment 605 (550) 5,445 (4,950) 6,050 (5,500) Shipping and Installation of Equipment 16,200 (16,200) 91,800 (91,800) 108,000 (108,000) 4. Consultant Services Audits 0 0 0 0 0 0 Recruitment of the key personnel 16,960 (16,000) 4,240 (4,000) 21,200 (20,000) Subtotal Component Base Cost 550,471 (506,426) 834,739 (802,834) 1,385,210 (1,309,260) Price Contingencies Physical Contingencies 39,041 (35,550) 16,429 (14,950) 55,470 (50,500) Subtotal Component Cost 589,512 (541,976) 851,168 (817,784) 1,440,680 (1,359,760) 8. SUPPORT FOR CENTER ESTABLISHMENT Consultant Services and Training Personnel Key Personnel - 514,250 90,750 605,000 (245,000) Training for DLC Staff 2,968 11,872 14,840 (14,000) ()I Content Development 106,318 18,762 (17,700) 125,080 (118,000) Audits 0 0 0 Operating Costs Satellite Bandwidth&Servicing Cost 0 786,000 Personnel - Support Staff 190,400 47,600 (19,640) Maintenance 42,438 78,813 (31,525) Utilities 7,800 4,200 (2,100) Variable Operating Cost 0 0 Subtotal Component Base Cost 864,174 (410,785) 1,037,997 (433,315) 1,902,170 (844,100) Price Contingencies Physical Contingencies 86,417 (41,079) 103,800 (43,332) 190,217 (84,410) Subtotal Component Cost 950,591 (451,864) 1,141,796 (476,647) 2,092,387 (928,510) C. MONITORING & EVALUATION Training for PCU Staff 8,904 (8,400) 3,816 (3,600) 12,720 (12,000) M&E PCU consultant services 9,116 (8,600) 82,044 (77,400) 91,160 (86,000) M&E PCU operating costs 34,174 (32,240) 8,544 (8,060) 42,718 (40,300) Subtotal Component Base Cost 34,174 (34,174) 94,404 (94,404) 146,598 (138,300) Price Contingencies Physical Contingencies 0 0 0 0 0 0 Subtotal Component Cost 34,174 (34,174) 94,404 (94,404) 146,598 (138,300) - 25 - B. Project Costs by Category Local IDA I US$ Foreign IDA I Total Total IDA 4. CIVIL WORKS Base Cost 373,450 (339,500) 160,050 (145,500) 533,500 (485,000) B. GOODS 1. Network Access Equipment 57,176 (57,176) 460,584 (460,584) 517,760 (517,760) 2. Other Equipment and Furniture 102,885 (93,750) 209,865 (192,750) 312,750 (286,500) C. CONSULTANT SERVICES AND TRAINING Base Cost 658,516 (344,350) 211,484 (150,650) 870,000 (495,000: D. OPERATING COST I. BandwidthRent Satellite 0 () 786,000 (314,400) 786,000 (314,400' 2. Operating Expenditure 274,812 (131,675) 139,156 (61,325) 413,968 (193,000 E. PPF REIMBURSEMENT 150,000 (150,000 Total Base Cost 1,466,839 (966,451) 1,967,139 (1,325,209) 3,583,978 (2,441,660 Total Price Contingencies Total Physical Contingencies 125,458 (76,629) 120,229 (58,282) 245,687 (245,687 Total Project Cost 1,592,297 (1,043,080) 2,087,368 (1,383,491) 3,829,665 (2,687,347 - 26 - Annex 4: Financial Management KENYA: Development Learning Centre Project Financial Management Arrangement at the Institution Level The Project Implementing Agency (DPM) has identified a department, i.e. the Human Resource Division [HRD], to take charge of overseeing the implementation of the above project in the initial phase. DPM through HRD will also be responsible for the preparatory phase o f the above project with assistance o f a PPF advance from IDA. In view o f this, implementation arrangement for the project i s basically in three tier phases, structured as follows: &e Accountable Body Source o f Funding 1.Preparatory Phase by D P M through HRD usingthe PPF proceeds 2. Construction Phase by D P Mthrough HRD usingthe Grant proceeds 3. Operational Phase (a) D L C Training by D L C usingthe Grant proceeds (b) M& E by D P M using the Grant proceeds The first two phases and 3(b) will be managed by the HRD and supported by hnctional Units inD P M for both Procurement and Financial Management services. The financial management arrangement for the operation, 3(a), o f the project by DLC can only be expected to come on board during the first two phases, especially because it i s envisaged that D L C will be an autonomous state owned body, located in the Kenya Institute o f Administration premises, in a separate specially constructed building. DLC will have a Board o f Directors, and will be legally empowered to operate independently in administering and safeguarding its Assets and Liabilities with no recourse to any other body. It i s also envisaged that DLC when operational will be a revenue earning body corporate, inits own right, to enable it to sustain its operations. Details and scope o f its operations as well as measure o f risks and its viability will be determined from the outcome o f the market studies to be commissioned during the preparatory phase. The financial management arrangement for the first two phases and later part 3(b) will be based on the existing systems in the DPM. These arrangements will suffice for the purpose o f tracking and monitoring preparatory, construction and M&E related expenditures. However, funds from IDA will be managed and accounted for separately from other funds o f DPM. To this end, DPM will undertake to designate a qualified and competent Accountant from its Accounting Unit who will be designated Project Accountant for the purpose o f the first two phases and part 3(b) o f the project. The Accountant shall be supported by a small team o f competent Accounting Technicians/Clerks, who will be vested with the responsibility o f managing and accounting for the project PPF and Grant proceeds as well as the Government o f Kenya's own contribution o f counterpart funding. Separate books o f accounts will be maintained in which all receipts o f monies and expenditures o f the same will be recorded. Due diligence and care will be exercised by the Project Accountant to ensure the project funds are used only for the purposes for which they were set aside. The Project Accountant shall ensure the project maintains separate books o f accounts, a sound internal control environment throughout the life o f the first two phases o f the project based on a credible chart o f accounts to be developed by the Project Accountant. In this regard, the following accounting - 27 - systems is strongly recommended in the context o f Government Accounting Systems and Financial Regulations, modified as appropriate to meet the specific needs o f the project. FinancialPlanningand BudgetaryControl Absorption o f IDA resources made available for the project either as PPF or Grant proceeds shall be through the Government Budget under the DPM's Budget Vote. The resources shall be appropriately designated as Appropriation in Aide (AIA) or Revenue, with Government counterpart funds being adequately allocated where relevant. Initially, the designated officer o f the HRD in D P M (and later the Project Coordinator) will be identified and assigned the responsibility o f administering the Authority to Incur Expenditure [AIE holder] by the Accounting Officer o f DPM, who will ultimately be accountable for the project funds. Expenditures met out o f the project proceeds shall all be eligible for IDA financing and approved by the AIE holder. Draw down o f the budgetary allocation for all commitments and expenditures eligible under the project shall be fully documented and controlled through the vote book control by the Project Accountant. ProjectSpecialAccount The project will have a Special Account established in a reputable commercial bank acceptable to IDA by the Government o f Kenya. In this regard, the Treasury and the Central Bank o f Kenya will ensure this account is opened soon after Grant effectiveness has been declared. The authorized allocation will be US$250,000, representing approximately the four months average o f eligible expenditures to be paid from the Account. Flow of Funds The mechanism put in place over the last two years by the Government o f Kenya and the Bank for channeling donor funds to the project activity level, have demonstrated enormous improvement in the flow o f funds. While Bank's Operations Financial Management staff continue to work with our counterparts in the Accountant General's Deparhnent to monitor the new mechanismand improve on it further, it is evident that risk o f financial leakage under the project has reasonably been mitigated under the prevailing arrangements. The project will have a designated project bank account to be opened with a reputable commercial bank acceptable to IDA. This account will be the operating account for the project and administered by the Project Coordinator. This i s critical especially inthe post PPF preparatory phase, when the execution o f the civil works program i s expected to take place. This particular activity poses an added fiduciary risk and enhanced potential for possible misuse o f project finances. T o mitigate against this risk, a Project Accountant, preferably fully qualified, will be identified and appointed to work along with the Procurement Team comprising o f competent and technically qualified staff, to supervise the civil work program. Establishment o f these two units are critical to the success o f the project, particularly the first two phases. Project funds will be drawn from the project Special Account in small amounts to be determined on the basis o f work plans and cash forecasts, for an agreed period, preferably quarterly, which will be placed in the project account at the project level. The Accounting Unit inD P M has been assigned the facilitating role for this operation, and will house the project accountant with full time responsibility for maintaining the project accounting records and information. The project accountant will ensure the project account is replenished regularly by initiating the preparation reimbursement claims through the Project Special Account. External Resources Department o f the Treasury will in turn ensure the Project Special Account i s replenished at least once each month. To expedite the operations o f the project, it is recommended that - 28 - HRD,the ProjectCoordinator and the Project Accountant be the Authorized Signatories to the Grant,while the Project Coordinator and the Project Accountant be assigned joint signatory responsibility for the project account with HRDand Head o f DPM's Accounting Unit as alternates. Transaction Recordingand Reporting The project will be basically simple, hence it should adopt `transaction based' disbursement (traditional) procedure, which the Government o f Kenya is familiar with and also for the reason that the amount o f the Grant is small. The project will adopt the Cash Accounting Basis practiced by the Government o f Kenya. Project funds from IDA will be disbursed from the Project Special Account, to be opened by the Government o f Kenya in a commercial bank acceptable to IDA. Where appropriate, direct payment procedure shall be used as provided for in the legal agreement. All expenditures must be fully and adequately supported by relevant documentation for evidence, and these shall be placed in secure custody o f the AIE holder for the purpose o f periodic inspection, review and audit by IDA supervision team and project auditor respectively. Similarly, all relevant supporting documents for the procurement process inclusive o f IDA'S `no objection' letters where relevant shall be properly kept by the AIE holder. Statement o f Expenditure (SOE) procedure shall be used to seek reimbursement from IDA for expenditures falling within SOE thresholds as defined inthe Grant Agreement and Disbursement Letter. A simple but adequate internal control environment will be ensured to mitigate against risk o fproject funds being used for non intended purposes. The prevailing internal control system, and approval processes inthe DPM's Accounting Unit are based on the Government o f Kenya Financial Regulations, which have also been improved inthe recent past. The Government Financial Management Bill 2002 provides the principal framework, expected to safe guard the assets o f the project as part o f public resources. This Bill i s expected to be presented to Parliament for debate and enactment into law inthe next few months, which i s withinthe proposed life o fthe project. Project financial reporting will basically comprise o f annual project financial statements showing all the resources received by the project regardless o f the source and method o f disbursement used. The reports will be prepared on the cash accounting basis and submitted to the Auditor not later than September 30, as required under the existing regulations. The accounts will be in formats prescribed by the Accountant General as agreed with the development partners. These shall include a Statement o f Source and Use o f Funds for each year, ending June 30, Statement of Receipts Expenditures for the same period, and a Balance Sheet. This project will also be required to present its Statements o f Expenditure based disbursement record for audit purposes as well as details relating to the Special Account transactions for audit verification. The project will adopt Financial Monitoring Report (FMR) format for reporting purposes within a period not exceeding 18 months after effectiveness. Within this period project staff will be assisted by IDA to develop capacity and systems capable o f preparing FMRs o n a quarterly basis. Audit Arrangements The books o f accounts, financial statements and all other financial reports stated above shall be subject to audit by an independent and competent Auditor acceptable to IDA. In this regard, the Controller and Auditor General is the recognized auditor o f the Government o f Kenya under the law, who is acceptable to IDA in view of the comfort we have with his independence and competence. The Controller and Auditor General may also appoint a private Auditor to conduct the audit on his behalf and report to him as provided for inthe law. Audited Project Financial Statements stated above shall be submitted to IDA within six months following - 29 - the end of the financial year to which they relate, i.e. not later than each December 31. Financial Management Capacity Assessment A Financial Management Capacity Assessment has been carried out based on the system obtaining in the DPM's Accounting Unit which will be managing the project's financial management matters for the construction component and the M&E component during the implementation phase. The operational phase o f the GDLC will be under a new independent institution, with a competent Project Accountant and other support staff to runthe financial management function o f the Centre. The details for this will be contained in DPM's Project Implementation Plan (PIP) and the Project Manual of Financial Procedures. DPM, Project Coordinator and Project Accountant will be responsible for overseeing the preparation o f these two critical documents, with support and guidance o f the Bank staff. Overall Risk Assessment The overall fiduciary risk for the project i s categorized as 'low' based o n country knowledge as articulated inthe CFAA report of 2001 and the level of financial exposure is low since the amount of Grant is fairly small (US$2.7 million). The capacity assessment o f DPM's Accounting Unit has been undertaken and found to meet Bank's requirement based on OP.BP 10.02. The task team is confident that there will be adequate measures to provide systems that will safe guard the project assets and to substantially mitigate fiduciary risk o f project funds being used for purposes other than those the Grant has been provided. The systems and institutional arrangement are also reasonably adequate to protect Bank's reputation as an institution. Due diligence and care will be ensured in the selection and appointment o f staff, and in their performance throughout the life o f the project. M&E and regular audits will provide useful means o f measuring outputs andperformance by closely matching expenditures with physical progress o f the project. The project task team and their close proximity to the project activities will provide the client and the project staff with professional support and guidance as needed during the implementation to ensure the success o f the project. - 30 - ITime taken to prepare the project (months) I 6 I 10 I First Bank mission (identification) 0411812002 0411812002 Appraisal mission departure 1111512002 0311012003 Negotiations 03l0912003 09l0312003 manned Date of Effectiveness I 0311112003 I 12l3112003 I Prepared by: GOK Preparation assistance: PPF US$150,000 (NO.4337 - 0 KE) Bank staff who worked on the project included: I Name SPecialitv Catherine Gachukia Operations Officer, TTL Marc Lixi GDLNRegional Coordinator Dahir Warsame Procurement Specialist Margaret Olale Disbursements Assistant Pascale Dubois, Manush A. Hristov Senior Counsel, Counsel JohnNyaga, Moses Wasike Financial Management Specialists Kathy Roffe, Mary Carneiro Country Program Assistant, Executive Assistant Marie-Therese Melkonian Language Program Assistant KennethMiller,Michael Fowler, Irene ReviewlClearances disbursements, QK,procurement, safeguards - Xenalus, Rogati Kayani, Serigne Omar Fye, Hyacinth Brown, Steve Gaginis Elizabeth White, Marius Koen, Harry PCD Review - legal, financial mgt., public sector mgt., quality assurance Gamett, Robert Floyd Andrew Follmer, Mwangi Wachira, PAD review operations, GDLCs, WBI, policy implementation, - David Potten, Stephen Njuguna, Denyse institutional devt., public sect. mgt., country knowledge Morin Mwangi Wachira Institutional arrangements, stakeholders participation, appraisal - 31 - Annex 6: Procurement and Disbursement Arrangements KENYA: Development Learning Centre Project Procurement Guidelines 1 . Procurement o f goods and works will be carried out in accordance with the Guidelines for procurement under IBRD loans and IDA credits (published in 1995 and updated in January and August 1996 and in September 1997 and January 1999). The Bank's standard bidding documents for goods and civil works will be used for ICB. Consultant services contracts will be procured in accordance with the Guidelines for the Selection o f Consultants by World Bank Borrowers (published in January 1997 and updated in September 1997, January 1999 and May 2002). The Bank's Standard Request for Proposals will be used and forms o f contracts as needed as well as the Sample Form o f Evaluation Report for Selection o f Consultants. Procurement Notices 2. It is expected that all contracts under the project will be awarded through national competition. Therefore there will be no contracts that require publication o f a General Procurement Notice (GPN) inthe UNDevelopment Business (UNDB). ForNCB, Special Procurement Notices (SPNs) will be advertised in a national paper o f wide circulation. Individual contracts for consulting firms are estimated below US$200,000consequently, the request for expression o f interest will be published only ina national paper o f wide circulation. However, if foreign firms express interest, they will not be excluded from consideration. Procurement ImplementationArrangements The procurement for activities identified in Component 1 o f the Project (Le. construction, purchase and installation o f equipment, Director's recruitment, etc.) will be handledby DPM. Once the D L C i s inbusiness, the procurement responsibility, as described inthe DLC's Component 2, will be ledby the Centre's Administrative Assistant. The procurement arrangements required for Component 3, M&E, which i s managed by the DPM, will continue to be ledby the DPM's Supplies Officers. A close and supportive working relationship will be required between the D P M Supplies Officers and the D L C Administrative Assistant throughout the project. DPMArrangements The Project ImplementingAgency (DPM) has designated two o f its procurement staff to assist the Project Coordinator in the management o f procurement processes and implementation o f procurement decisions. D P M will also borrow from the Ministry o f Roads & Public Works (MORWP), on a secondment arrangement, a Senior Architect (with some experience inBank-financedprocurement). The Architect will work closely with the DPM procurement officers on the procurement o f works contracts and the selection - 32 - o f works-related services. The procurement tasks that the D P M procurement team will specifically undertake include: a) procurement o f contractors for the construction o f the D L C and small works (refitting) at the Centre; b) logistical and managerial support to ensure the procurement and installation o f the communications equipment with the help o f the World Bank Information Solutions Group (ISG) andthe operator M C I WorldCom; c) procurement o f the DLC's other equipment and furniture; d) contracting a management firm that will be commissioned to recruit a Director for DLC; e) assisting the Director inthe recruitment o f the other D L C personnel; fComponent ) procurement of various M&E consultancies under the responsibility o f DPM and as described in 3 and inthe procurement plan; and g) providing guidance and support as and when needed to the DLC's management and, inparticular, the Administrative Assistant. By the time the recruitment and training o f D L C staff has been accomplished, all major procurements under D P M will either be complete, nearing completion or inprogress. The main procurement activities for D P M once the DLC i s operational will be on contracting the M&E consultancies required throughout the project implementationperiod. DLCArrangements Procurement requirements o f the D L C after it starts operating will mainly relate to: a) office supplies and routine maintenance services; b) the Centre's personnel who are contracted and maintainedon individual consultancy arrangements; c) the procurement arrangements for the development o f training contents by the DLC; and d) procurement for the various training providers neededfor the program. These procurement functions will be carried out by the DLC's Administrative Assistant. Heishe will work closely with D P M to ensure the successful implementation o f the M&E consultancies which will be directly contracted by D P Mbut carried out at the D L C site. Capacity assessment 4. A World Bank procurement specialist carried out an assessment o f the implementing agency (DPM). The assessment was discussed and agreed with DPM. The main findings are as follows: (a) Overall, capacity o f the team proposed for the implementation o f procurement is "fair" and the - 33 - associated risks are in the "average" category. The D P M Procurement Officers are conversant with the Government procurement rules but have no experience in implementing Bank-financed procurement. Therefore, in order to mitigate the risk and improve their performance, D P M will borrow a senior architect with some experience inBank procurement procedures from the MORPW to assist with the civil works contracts. The team will also be seeking guidance when need arises from the Procurement Officer in the on-going Public Sector Management TA Project (PSM-TA), who has substantial Bank procurement experience. The PSM-TA Project is being implemented by the same Implementing Agency (DPM). (b) The selection and procurement decisions o f most consultancy services and goods will be subject to prior review o f the Bank. (c) For small procurements, D P M will be following Government public procurement regulations which were prepared and published in 2001 through the financial and technical support o f the Bank, and are acceptable to Bank. Inthe light o fthe foregoingmeasures, the riskcanbe rated "average". To ensure adequate procurement capacity within the new D L C institution, the individual hired for the Administrative Assistant post should have prior procurement experience. He/she will also undergo further procurement training with the Bank's guidance. Civil Works (US$0.49 Million) 5. The project's main civil works will be the construction o f the Development Learning Centre's facilities including the main building and a room for the generator (Component 1). Small works might be necessary duringproject implementation for the maintenance and improvement o f the DLC facilities. Given the low amount o f this component it would not attract foreign contractors. Contracts estimated to cost less than US$550,000 but more than US$50,000 equivalent would be tendered through National Competitive Bidding(NCB). Contracts for works estimated to cost less than US$50,000 equivalent would be procured under lump sum, fixed-price contracts awarded on the basis o f quotations obtained from three qualified domestic contractors invited in writing to bid. The invitation shall include a detailed description o f the works, including basic specifications, the requiredcompletion date, a basic form o f agreement acceptable to IDA, and relevant drawings where applicable. The awards will be made to the contractors who offer the lowest price quotation for the required work, provided they demonstrate they have the experience and resources to complete the contract successfully. - 34 - Goods (US$O.80 Million) 6. Goods financed under the project would include vehicles, computers, and equipment for the implementing agency. N C B procedures would be used except for contracts exceeding US$lOO,OOO each, which should be tendered through ICB procedures. Prudent shopping based on written price quotations obtained from at least three reliable suppliers can be used for small quantities o f goods, provided that: (a) these goods are not grouped into packages o f more than US$30,000; and (b) the aggregate amount does not exceed US$lOO,OOO. The communication equipment will be procured under I C B procedures with the help o f WB ISG. 7. The above aggregate values for N C B or other non-ICB procurement methods for goods and works are limitative and cannot be exceeded without prior no-objection from the Bank. The procurement unit responsible for the project will maintain a tracking system to monitor the aggregate values and to alert the Bank shouldthe limitsbe exceeded. Consulting Services and Training (US$0.50 Million) 8. The project will finance consultancy services provided by firms to assist the DL Centre to: (i) organize courses, workshops and seminars; (ii) purchase and develop training contents; (iii) D L C recruit staff; and (iv) undertake M&E consultancies. Except as otherwise indicated, The Quality and Cost Based Selection (QCBS) method will be used for consulting assignments carried out by firms. The organization o f consultative workshops and training assignments to be carried out by firms or training institutions, estimated to cost less than the equivalent o f US$50,000, may be awarded based on Consultant Qualifications andor Least-cost Selection methods. Services which are estimated to cost US$30,000 equivalent or less than per contract may, with the Association's prior agreement, be procured on single source selection in accordance with the provisions o f paragraphs 3.8 through 3.11 o f the Consultant Guidelines. 9. Short-lists of consultants for contracts estimated to cost less than the equivalent o f US$50,000 may be comprised entirely o f national consultants, if a sufficient number o f qualified firms (at least three) are locally available at competitive cost. 10. Services for small assignments, studies, and organization o f lectures/seminars/workshops which can be carried out by individual consultants and the consultants recruited as D L C key staff, will be selected through comparison o f qualification and experience among those expressing interest in the assignment or approached directly. Operating; Costs (US$0.50 Million) 11. The project will finance the DLC operating costs on a decreasing basis. The Grant will cover 80% o f the D L C operating costs the first year, 60% the second year, 40% the third year and 20% the fourth year. The operating costs will include: (i)the support staff salary; (ii)the payment o f the satellite bandwidth under direct contracting; (iii) the maintenance o f the NetworWCommunication equipment; (iv) the purchase of office supply; and (v) the maintenance and operation o f the vehicle. The project will finance DPM Project Coordination Unit's operating costs for: (i)the maintenance o f computers and email connection services; (ii)office supplies, including postage/mail delivery and costs arising from the production o f reports; and (iii)administrative costs incurred in the organization o f consultative meetings such as refreshments, materials, and room charges. -35 - The procurement methods and related amounts are summarized intable A below. Table A: Procurement Plan (US$ million equivalent) Indicative Completion/ 'ckg Component/Desc. of Estimated Procurement Date of Date of Delivery -No. ServiceslGoods Cos4 Method' RFPIITB' Awrd Date3 1 Civil Works - construction NCB 10115/03 01115/04 39130104 (0.49) 2 Civil Works - Small 0.04 NCB 11115103 01130104 17130104 Workslrefitting) (0.04) 3 Network Access Equipment 0.57 ICB 02115104 0.5115104 10101I04 (0.57) 4 Consultant Recruitment Firm 0.02 CQ 04101/04 05101104 37/15/04 (0.02) 5 Other Equipment & Furniture 0.28 NCB 03101/04 06101104 10101I04 (0.23) 6 M&E 0.07 QCBS, CQ 08101104 09130104 11130104 (0.06) 8 Training Providers 0.02 QCBS 10130105 12130105 05130106 (0.02) 9 DLCIPCU staff 0.44 ICs 07115104 09115104 12/31/08 (0.16) 10 Operating Costs 0 11 (a) Bandwidth Rent 0.85 Direct ServicesIMaintenance (0.35) Contracting 12 (b) Other Operating Costs 0.45 DLC (0.20) I I I Total $2.47 Figures inparenthesesare the amounts to be financed by the , All costs include contingencies 21RFP - Requestfor Proposals, ITB - Invitation to Bid, ICB - Intemational Competitive Bidding, NCB - National Competitive Bidding, QCBS - Quality- and Cost-BasedSelection, QBS - Quality-based Selection, SFB - Selection under a Fixed Budget, LCS - Least-Cost Selection, CQ - Selection Based on Consultants' Qualifications j'End of contact may not exceedloadcredit board date IDA reviews 10. Goods estimated to cost the equivalent o f US$ 50,000 or more and works estimated to cost the equivalent of US$lOO,OOO or more will be subject to prior review by IDA. All other contracts will be subject to post review during supervision missions and audits. 11. All contracts with consulting f m s costing US$50,000 equivalent or more and individual consultants costing US$25,000 equivalent or more as well as selection of consultants on single-source selection method will be subject to prior review. All other contracts will be subjected to post review. However, this exception for prior review will not apply to consultant contracts that raise the contact value - 36 - by more than 15 percent o f the original amount. For training abroad or in the country, the program containing names o f candidates, cost estimates, courses, period o f training and institutions selected would be reviewed by IDA semi-annually. Selective post-review o f contracts awarded below the threshold levels will apply to about one infive contracts during supervision missions, and procurement audits. 12. DLC personnel will be recruited following IDA no-objection and based on a comparison o f at least three resumes. Procurement supervision and technical audit 13. The Government has completed: (a) a Manual o f Procedures with a specific section on procurement detailing procedures for planning, calling for bids, selecting contractors, suppliers and consultants; and (b) a Project Implementation Plan and a procurement plan for the first year o f operation. 14. The Government has given assurances at Negotiations that it will: (a) use the Manual o f Procedures and Project Implementation Plan for Project Implementation; (b) use Bank approved bidding documents for NCB; and requests for proposal and models o f contracts for consultant services; (c) apply the procurement procedures and arrangements outlined in the above documents; and (d) only modify the Manual o f Procedures with prior IDA approval. - 37 - Disbursement The Association may require withdrawals from the Grant Account to be made on the basis o f statements o f expenditure for: (a) works under contracts costing less than US$lOO,OOO equivalent each; (b) goods under contracts costing less than USS50,OOO equivalent each; (c) services o f consulting firms under contracts costing less than US$50,000 equivalent each; (d) services o f individual consultants under contracts costing less than US$25,000 equivalent each; (e) training; and (f) operating costs; all under such terms and conditions as the Association shall specify by notice to the Recipient. Table B: Allocation of Grant Proceeds Expenditure Category Amount in US$million Financing Percentage Civil Works 0.49 100%o f foreign expenditure 90% o f local expenditure Goods 0.80 100%o f foreign expenditure 90% o f local ewenditure Consultancies and Training 0.50 100%o f foreign expenditure 94% o f local firms 100% o f local individuals Operating Costs 0.51 Part A & C: 80% Past B: 0% inthe first project year, 80% inthe secondyear, 60% inthe thirdyear, 40% inthe fourth year, and 20% thereafter PPF 0.15 Unallocated 0.25 ~ ~~ 0.00 0.00 0.00 I I 0.00 I 0.00 0.00 0.00 0.00 Total Project Costs 2.70 Total 2.70 - 38 - Annex 7: Documents in the Project File* K E N Y A Development Learning Centre Project A. Project ImplementationPlan Government PIP and Procurement Plan (March 2003) Government Manual o f Procedures (March 2003) B. Bank Staff Assessments Financial Management (March 2003) Procurement Assessment (March 2003) C. Other Identification Mission Aide Memoire (September 18,2001) - PSMProject component Project Development Mission SMO (April 4, 2002) Borrower Project Request Letter (April 8, 2002) WB Mission's Notice to Borrower (April 17,2002) Project Development MissionAide Memoire (April 18-24, 2002) Project Development BTOR (April 29,2002) Concept ReviewPackage (June 17,2002) Minutes o f the Concept Review Meeting,including peer review comments (June 26, 2002) Borrower PPF Request letter (June 3, 2002) Integrated Safeguards Data Sheets (June 12,2002 & May 22, 2003) PPF Approval Package (August 9,2002) PPF Letter o f Agreement (August 9,2002) Draft Legal Notice to establish the DLC (September 2002) Minutes of the Decision Meeting, including peer review comments (November 2002) Appraisal MissionAide Memoire (March 2003) Kenya Gazette establishing the DLC (June 27,2003 and July 18, 2003) List of Board Members approved by GOK Draft construction documents - designsand biddingdocuments Market study TOR, contract, & proposal FinancialManagement System software installation TOR A Strategyfor Performance Improvement inthe Public Service (July 2001) Draft Public Service Training and Capacity BuildingPolicy (November 2001) Laws of Kenya - The Education Act (revisededition 1980) Kenya Institute of Administration Training Program July 2001- June2002 *Including electronic files -39 - Annex 8: StatementLoans and Credits KENYA: DevelopmentLearningCentreProject 06-Aug-2003 CloredProjsdr 116 SyleNltlonRathg ProknlD Rolect Name Q!d@ak%e"SsImlemantatlo" FlocalYaar PEE6485 DECENTRALIZED &REP S S ;DO1 50 3891369 17410112 ,36515 PO34180 EARLY ChlLDHOOD DEV U S 1997 27 8 103371 12257948 1045523 PO82370 FREE PRIMARY mucans S 2003 50 22 33876 .19 49255 PO70920 HNIAIDS (UMBRELLLI) S S 2001 50 32 47725 9 3062183 PO01344 KEENERGYSECTOR RES S 1997 125 3888162 4823444 PO78058 ARID LANDS I1 4! 4! 2003 60 60 9092 PO69501 ECONOMIC &PUBLIC SE S S 2001 155 21 107 8699 97 622361 18 28991 PO46871 M E VICTORIA ENV U # 1997 11 47540984 6 274056 6 8510@31 PO35691 NAIROBIMOMBASAROAS S 1996 50 6043519 10300864 7 68612 PO01354 kARP I1 S S 1997 39 7 1 626188 -1 399696 PO65490 PUB SEC MGMT TA S S 2002 15 1088861 10394714 PO70718 REGIONPLTRADE S S a 0 1 25 20 E749 6 6644764 PO01319 WEAN TRANSPORT U U 1996 115 24061i9 35 15LIS75 &era11R e m 1 762 71 11 47540984 330 7403 233 30077 32 77976 40 KENYA STATEMENT OF IFC'S Heldand DisbursedPortfolio June 30 -2003 In Millionsof US Dollars Held Disbursed FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 2000 AEF AAA Growers 0.55 0 0 0 0.55 0 0 0 1998 AEF AAR Clinic 0 0.5 0 0 0 0.5 0 0 1997 AEF Ceres 0.93 0 0 0 0 9 3 0 0 0 1997 AEF DerasLtd. I O 0 0 1 0 0 0 1996 AEF Equitea 0.28 0.12 0 0 0 2 8 0.12 0 0 1992 AEF FutureHotel 0.13 0 0 0 0 13 0 0 0 2000 AEF Lesiolo 2.5 0 0 0 2 5 0 0 0 1998 AEF Locland 0.37 0 0 0 0 3 7 0 0 0 2000 AEF Magana 1.33 0 0 0 1 3 3 0 0 0 1997 AEF Makini 0.25 0 0 0 0 2 5 0 0 0 1997 AEF Redhill Flrs 0.25 0 0 0 0 2 5 0 0 0 1999 AEF Transenergy 0.19 0 0 0 0 19 0 0 0 1999 ANSPAR 2 0.67 0 0 2 0.67 0 0 1980183198 DBK 3 0 0 0 3 0 0 0 1982 Diamond Trust 0 0.8 0 0 0 0.8 0 0 1998 GBHL 3.5 0 3 0 3 5 0 3 0 2001 Gapco Kenya 15 0 0 0 10 0 0 0 0 IPS(K)-Allpack 0 0.31 0 0 0 0.31 0 0 0 IPS(K)-Frigoken 0 0.06 0 0 0 0.06 0 0 0 lPS(K)-Prem Food 0 0.11 0 0 0 0.11 0 0 1994 lntlHotels-Ken 4.16 0 0 0 4 16 0 0 0 1996199 K-Rep Bank 0 0.43 0 0 0 0.12 0 0 2003 Kenair 15 0 0 0 0 0 0 0 1983191 LIK 0 0.03 0 0 0 0.03 0 0 2000 Mabati 5.5 0 4.5 0 5 5 0 4.5 0 1970/74177/79181188189194196199 Panafrican 0 0 0 0 0 0 0 0 1972 TPS (Kenya) 0 0.04 0 0 0 0.04 0 0 0100 Tsavo Power 0 0 0 0 0 0 0 0 Total Portfolio: 55.94 3.07 7.5 0 3594 2.76 7.5 0 Approvals Pending Commitment Loan Equity Quasi Partic 2002 EberegeTea 1800 0 0 0 2002 ItumbeTea 1700 0 0 0 2003 Kenair 0 0 0 0 Total PendingCommitment: 3500 0 0 0 41 Annex 9: Country at a Glance KENYA: Development Learning Centre Project Sub- POVERTY and SOCIAL Saharan Low- ~~ Kenya Africa income Development diamond* 2002 Population, mid-year (millions) 31.3 688 2,495 Life expectancy GNi per capita (Atlas method, US$) 360 450 430 GNI (Atlas method, US$ billions) 11.3 306 1,072 Average annual growth, 1996-02 Population (%) 2.3 2.4 1.9 Laborforce (%) 2.9 2.5 2.3 GNi Gross per primary Most recent estimate (latest year available, 1996-02) capita nrollment Poverty (% of population below nationalpovertyline) Urban population (% of total population) 35 33 30 Life expectancy at birth (years) 46 46 59 Infant mortality (per 1,000live births) 80 105 81 Child malnutrition I%of children under 5) 22 Access to improved water source Access to an improved water source (% ofpopulation) 57 50 76 Illiteracy (% ofpopulation age 15+) 16 37 37 Gross primary enrollment (% of school-age population) 94 86 95 - Male 95 92 103 Kenya Low-income group Female 93 80 87 I KEY ECONOMIC RATIOS and LONG-TERMTRENDS 1962 1992 2001 2002 Economic ratios' GDP (US$ billions) 6.4 8.0 11.4 12.1 Gross domestic investment/GDP 18.2 13.7 12.8 14.8 Exportsof goods and serviceslGDP 25.0 26.9 26.0 25.5 Trade Gross domestic savingslGDP 14.5 13.7 4.2 0.7 Gross national savingslGDP 11.8 9.7 9.6 13.1 T Current account balancelGDP -4.7 -2.3 -2.8 Domestic Interest paymentslGDP 1.3 2.5 0.7 0.5 savings Investment Total debt/GDP 10.0 86.2 49.5 51.1 Total debt servicelexports 14.5 31.I 13.9 9.8 1 Presentvalue of debt/GDP 38.7 I Presentvalue of debtkxports 146.6 I indebtedness 1982-92 1992-02 2001 2002 2002-06 (average annual growth) GDP _- 4.4 2.1 1.I i.a 3.5 1 --Kenya Low-income group ~ GDP per capita 1 0 -04 -10 -0 2 1 8 L I STRUCTURE of the ECONOMY 1982 1992 2001 2002 I%of GDPJ Growth of investment and GDP (Oh) Agriculture 33.4 26.6 19.0 19.1 ::J, Industry 19.9 18.9 18.2 18.3 Manufacturing 12.2 11.1 12.5 12.7 Services 46.7 54.5 62.9 62.6 Privateconsumption 67.1 70.2 79.0 81.1 General government consumption 10.4 16.1 16.8 10.2 imports of goods and services 28.7 26.9 34.6 31.6 1982-92 1992-02 2001 2002 (average annual growth) Growth of exports and imports (Oh) 1 Agriculture 2.7 1.6 1.2 1.o 20 industry 4.3 1.6 0.7 1.4 10 Manufacturing 5.1 1.8 0.8 3.5 Services 4.9 2.9 1.3 3.6 0 I Private consumption 5.1 2.2 -4.4 0.0 10 General government consumption 3.6 6.6 4.3 6.2 Gross domestic investment 1.5 4.3 2.3 3.8 -Exports -Imports Importsof goods and services 5.7 5.5 -1.2 2.9 'The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be incomplete. - 42 - Kenya ~ PRICES and GOVERNMENT FINANCE 1982 1992 2001 2002 Domesticprices Inflation (%) (% change) 2o T I Consumer prices 27.3 3.9 5.0 Implicit GDP deflator 11.7 17.5 11.3 4.9 Governmentfinance of GDP, includes current grants) Current revenue 25.1 27.5 22.5 22.4 97 98 99 00 01 Current budget balance -1.5 1.3 1.5 2.4 Overall surplus/deficit -10.2 -3.3 -0.9 -0.9 ~ -GDPdeflator +CPI TRADE 1982 1992 2001 2002 (US$ millions) Export and Import levels (US$ mill.) Total exports (fob) 894 1,013 1,732 1,742 I 4,000 T Fuel 223 69 115 101 Coffee 227 128 86 97 Manufactures 107 144 274 310 Total imports (cif) 1,415 1,666 3,182 3,137 Food 63 156 290 300 Fuel and energy 523 412 810 809 I Capital goods 250 411 756 803 Export price index (1995=100J 77 76 74 74 96 97 98 B9 00 01 Import price index (1995=100) 112 91 100 104 Exports Imports Terms of trade (1995=100) 69 84 74 71 O2 BALANCE of PAYMENTS 1982 1992 2001 2002 (US$ mil/ionsJ Current account balance to GDP ( O h ) I Exports of goods and services 1,715 2,149 2,966 3,001 Imports of goods and services 2,030 2,152 3,939 3,850 Resource balance -315 -3 -973 -648 Net income -254 -355 -60 -70 Net current transfers 63 68 761 576 Current account balance -305 -160 -316 Financing items (net) 139 255 509 Changes in net reserves 167 -75 -191 256 Memo: Reserves including gold (US$ millions) 248 162 1,097 1,174 Conversion rate (DEC, local/US$J 10.9 32.2 76.6 76.7 EXTERNAL DEBT and RESOURCE FLOWS 1982 1992 2001 2002 (US$ millions) Composltlon of 2002 debt (US$ mill.) Total debt outstanding and disbursed 641 6,696 5,644 6,207 IBRD 0 658 24 13 A: 13 IDA 0 1,411 2,263 2,447 G: 863 Total debt service 258 670 417 299 IBRD 1 159 26 13 IDA 0 16 51 60 F 482 B 2447 Composition of net resource flows Official grants 143 376 252 Official creditors -15 155 62 1 Private creditors -136 20 -103 -18 Foreign direct investment 13 6 5 E 1,7 Porffolio equity 0 0 0 D: 526 World Bank program Commitments 0 176 93 2 - Disbursements A IBRD 0 92 116 E Bilateral 66 B IDA -- D Other multilateral - F. Private Principal repayments 0 104 56 54 C. IMF G Short-terrr - Netflows 0 -12 58 12 Interest payments 1 71 20 19 Net transfers -1 -83 39 -7 'Note: I nis tatxe was proaucea rrom tne uevelopment tconomics central database.- - 43 - Additional Annex I O : Terms of Reference Project Coordinator - KENYA Development Learning Centre Project The Project Coordinator (PC) is a mainstream civil service position providing management support for the D L C Project under the DPM. Heishe will provide full time support for the busy period during the first few months when various time-sensitive preparation activities are demanded. Thereafter, following the smooth construction and installation o f the Centre as well as the full operation o f the DLC, the PC will provide part time support on a regular basis. Hisher other responsibilities will be in support o f other D P M tasks as a D P M employee and as directed by the PS/D. Although the D L C Project's workload lessens later, it does not diminishthe importance o f the PC's role because o f the critical oversight function o f the grant on behalf o f DPMiGovernment, ensuring the DLC's positive impact on civil servants, and the continuous coordination, auditing, financial, and M&Eresponsibilities o f the post. The role of the Project Coordinator will be to: 0 Supervise the construction and installationof the DLC incoordination with the MORPW, IDA, and MOF. 0 Facilitate the recruitment o f the D L C team incoordination with the Board. 0 Ensure the preparation and agreement o f a Subsidiary Agreement between the Government and the DLC, MOUbetween the D L C and GDLN, and an agreement between KIA and the DLC. Close collaboration between IDA and GDLNis necessary duringthe development o f these critical documents. 0 Prepare quarterly progress reports on performance. 0 Support the Director o f the D L C introuble shooting and infacilitating consultations with Government representatives. 0 Refine and update the M&E framework with the new D L C team incollaboration with stakeholders and partners. 0 Ensure audits are carried out and adequate budgetary allocations provided for the DLC. Facilitate funds flow between DLC, the MOF and IDA. 0 Assist to organize project preparation and supervision missions. 0 Coordinate regular meeting between the D L C and D P M management. 0 Assist to articulate and implement a strong and appropriate link between the DLC, the national public service training strategy, and the Government budget. 0 Implement the M&Etasks identified inthe M&E planfor D P M and ensure that M&E for the project as a whole, whether implemented by D L C or DPM, works successfully and produces the desired results. 0 Ensure, as the primary stakeholder representative o f the civil servants, that their training needs are adequately captured and met, that the quality and usefidness o f the training is evaluated with the lessons learnt used to further improve DLC's strategy, that civil servants regularly receive information on the training and its value, and that efforts are made to enhance the level and access o f training budgets withinthe civil service. Reporting & Relationships 0 The Human Resources Division (HRD) within D P M is responsible for the project. The Project Coordinator from HRD will report to the head o f the HRD and the PS/D as appropriate. He/she will have a close working relationship with the P S W T A team. 0 The Project Coordinator works along side the Director o f the D L C to provide a supportive role and link to the D P M as well as to the wider civil service. HeiShe will not be responsible for supervising the performance o f the Director o f the D L C - theDirector is primarily responsible and accountable for the - 44 - management o f the D L C and will report to the Board. The Project Coordinator will work in close collaboration with the Director to ensure the satisfactory implementation o f the M&E, audit and financial functions and the civil service training. 0 A working and collaborative relationship between the Project Coordinator and IDA is also necessary. Selection Qualifications 0 The PC should be a dynamic, proactive, and committed individual with a good performance track record, particularly interms of timeliness and effectiveness. 0 At least four years working experience inthe civil service ina leadership position, including collaboration with various other government ministries and agencies. 0 Working experience with World Bank procedures and operations from a project coordinating, preparation or implementation capacity. 0 A higher degree. 0 Project Management knowledge. 0 Familiarity with basic computer software e.g. word processing, email, spreadsheets. 0 Ability to work as a team member and to ensure strong working relations with key agencies or ministries working with D P M inimplementation o f the project. 0 Excellent communication and interpersonal skills. Selection Process 0 Usingthe above criteria, a short list o f at least six CVs o f Government Officers willing to take up this challenge and new experience should be compiled following a search andor invitation. 0 Itis recommended that the short list is shared for comment with IDAbefore the final decision is made by DPM. - 45 - Additional Annex 11: Draft M&E Plan KENYA: Development Learning Centre Project Evaluation Required Data Gathering BaselineInformation Analysis, Reporting, Questions Information, and Methods, Frequencies Requirements, Status Feedbackand indicators (identifies and Responsibilities and Responsibilities Change Processes information, which may (establishes information (identifies required and Responsibilities include indicators, collection and analysis baseline information) (establishes overall required to answer the methods) analysis to be done and key evaluation howfindings will be auestionsi 1 1 used) Objective: To test the effectiveness and sustainability of a development learning centre as part of a global knowledge-sharingnetworkto strengthenthe capacity of public, private and civil society decisionmakers and implementers to design, plan and manage s ialand economic developmen policies and programs in Kenya What is the impact At least 40% from Y 1 I D L C will hire a consultant ) The target group Results will be analyzed by of the learning and 60% from Y3 of conduct pre and post r i l lbe civil servants the consultant and usedby program ? the sampled irveys o f selected civil ominated or DLC and DPM to improve participants have :rvant participants (from Y 1 Jonsored for D L C the training strategy, in improved their capacity idY3) and their supervisors aining and whose consultation with the to design, plan and based on KirkPatrick's Level :rms o f reference Board. Both the results o f manage social and measure o f behavior). Post iclude planning, the analysis andthe change economic development ainingdata will be collected esigning, or managing process should be policies and programs om participants and their )cia1 and economic documented, as appropriate as judged by both ipervisors no earlier than six evelopment policies inthe business plans, participants and their onths after the training ndprograms. Data to Board Minutes, and annual supervisors e collected will progress reports. The lentify the content, results shouldbe available - Descriptions o f what ndproportion o f work for the mid-termreview they are doing onsistingo f designing, and the end-of-project differently,how it is lanning or managing evaluation working out, and if fpolicies and they are not doing rograms. Further anything different, etails for this process explanation o f why re provided under Additional iformation" at the end fthe matrix $ow efective is the - At least 40% from Y1, valuation techniques (based Pre performance and IResults will be analyzed by zarningprogram ? 50% from Y2, 60% frorr I KirkPatrick's Level 2 content tests (DLC) D L C and usedto improve Y3 and 70% o fthe easure o f learning) will be the training program each sampled participants Inductedby the D L C on at quarter. The quarterly have improved ast 40% o f all training Board sessions should knowledge andor skills Iurses conducted each provide a forum for further or changed attitude as a iarter/year discussion, input and revieM result o f the training Both the results o f the analysis and the change - Summary description process shouldbe o f level and type o f documented in the business learning gained plans, Board Minutes, and annualiquarterly progress - Explanation for any reports. Information - 46 - learning failures requiredfor the supervision missions, mid-termreview and the end-project evaluation Fthe business model - The Centre should DLC analyses financial lusinessplan Findingsusedby DLC and 'nancially viable andmeet the operating viability status each year Ianual o f Procedures DPM, in consultation with re the mechanisms expenses of (excluding 'AD the Board, to adjust the ut in place amortization) o f up to 'IP businessplan, including ustainable? 20%, 40%, 60% and policies andprocedures 80% respectively during the first four years from Results of the analysis and generated incomeand the change process shouldbe ensurefinancial documentedinthe equilibrium as early as subsequent quarterly and the fifth year of annual progress reports/ operation businessplans and Minutes o f the Boardandthe - Performance On the consultativemeetings. establishment of Institutional audit (consultant Information requiredfor the processes, structures, hiredby DPMIDLC) during Year supervisionmissions, capacities, and resources mid-term review and that enable a continued end-projectevaluation benefit from the project, including identification Output 1:DLC opt ational and adequatelj !quippedto provide the requii d services Have the outputs, issessmento f actual Quarterlyreview ofplanned PIP The PS/DPMand IDA activities & inputs ierformance against inputs, activities and outputs will reviewprogress been delivered and he work plan by the PC, DPM reports and, in particular, on time and within ncluding performance ensure that timely budget? or the indicatorslisted correctiveactions were n the log frame below taken and that any 0 Highly effective recommendations Project Coordinator suggestedare appropriate. supported by an efficient Accountant The report will also serve and Procurement as a guide for further Officer in place at improvementdecisions, DPM recommendations or 0 DLC's independent actions. Both the results registration and of the analysis and the Boardset-up change process shouldbe completed documented in the 0 Centre's land quarterly/final progress allocated by host report andmade available institution and for the supervision facility built and missions and the equipped within mid-term review the time and standards required 0 High quality DLC staffrecruited 2.1 An effective an( and performanceof civil servants 1 I - 47 - To what extent is - No. and type of DLC compilationof: (a) Market The information will be theprogram or courses developed or comparison of actual courses Study/TrainingNeeds analyzed(annually) by courses offered suppliedthat offeredversus those Assessment conducted DLCto identify meeting the needs correspondto the identified as needed at the start of the wherehow needs are of the Government training needs (annually),;(b) results o f projectby a consultant beingmet andthe gaps. and other identified for (a) civil customer satisfaction hiredby DPM. This information will be benejkiaries? servants (b) others questionnaires (e.g. usedby the DLC and to KirkPatrick's Level 1 The training needs o f improve the training - Reactions from measure of reaction) from all projectscollectedby strategy and to obtain trained(a) civil courses (quarterly); (c) DPM annually with feedback from servants and (b) others DLC's responseto courses DPM's response as consultativeplanning identified by projects part of the Business meetings and Board - Assessment of the (annually); and (d) results o f Plan sessions. Results o f the DLC's responsiveness the collaborationwith the analysis and the change to and linkages Govt. training strategy Strategypaper by process shouldbe (institutional and (annual). DPM on integrating documented inthe annual operational) with the and linking the DLC progress reportshusiness Govt.public service DPM review of performance with the Govt. plans and Minutes of the training strategy on strategy to strengthen Training Strategy Boardandthe linkagesbetweenthe DLC consultativemeetings. - Ability of the DLC to and the Govt. Training Information requiredfor provide the training Strategy (quarterly) the supervisionmissions, requiredby mid-term review and development projects The Market StudylTraining end-projectevaluation Needs Assessment repeated annually (consultant hiredby DPM) to reviewneeds & demand i the training in - Number of (a) civil DLC compiles list of various Enrollment records Results of the analysisby emand,particularly servant and (b) private participants, including their DLC on an annual basis y thoseplanning (c) NGO that are professions and locations larket StudyITraining will be usedto improve nd implementing enrolling (numbers (quarterly) Ieeds marketing design and x i a l and economic shownby course and in client strategy with DPM evelopmentpolicies total as well as client `he Market StudylTraining assistance and feedback nd programs? location) Jeeds Assessment repeated from the Boardand nnually incorporates consultativemeetings. - Extent to which iformation on (i)total number Results of the analysis and nonparticipantsinquire fpotentialclients inthe civil the change process should about the DLC and its ervice marketlprojecttarget be documentedin services roup (with DPM); (ii)numbei progressreportshusiness iho showedinterest from plans and Minutes o f the - Comparisonof actual revious marketstudy but did Boardand the participants vs the ot apply; (iii)number of consultativemeetings. number o fpotential onparticipantswho have Information requiredfor clients inthe civil pproached the DLC; and (iv) the supervisionmission, service marketlproject ample survey to obtain reasons mid-term review and target group sr non-enrollment end-project evaluation - Explanationo fwhy nonparticipantsdo not take advantage of the learning opportunities, or what are the barriers - 48 - to greater participation '0 what extent are -Number o f institutions DLC to (i) numbers review Potential training he analysis will be used renyan institutions and local experts using quarterly; (ii)review providers identified in inually by DLC to adjust it! rcreasingly using the center each year performance annually based on the market studies and rategy in the business plan. 'leDLC as a center demand, client feedback and continuously by the D L C he performance o f the 3r delivering -Assessment on the other evaluations indicated in through consultations rategy shouldbe reported zarning activities to performance o f the local the M&E plan; and (iii) review Ithe annual progress artner centers? and other training its own performance annually Strategy to enhance local :port. provider institutions on the strategy to enhance local institutions participation institutions and experts with targets built into -Explanation o f barriers the annual business to greater participation plans -Report on how the DLC has encouraged and helpedlocal institutions and experts enhance participation and quality o f their services '0 what extent has -Summary report on D L C to: (i)include a question he information will be usec he Centre raised reactions from clients on the IT aspect at least twice a y the D L C to determine the wareness on the and other partners year in level 1evaluations; (ii) alue o f I T as a learning alue of IT and gather information from xpectation in the pilot and lractical learning continuous consultations; and ) adjust its training strategy pportunities on the (iii) feedbackfromall obtain necessary entre's IT operations local individualsiinstitutions .esults o f the review should working for the Centre. e reported in the annual rogress report. owdoes the DLC - Analysis of current andThe Market StudyiTraining Competition strategy The analysis will be used zce current and future competition and Needs Assessment repeated prepared and updated annually by DLC to adjust yture competition by its implication to the annually incorporates each year as part o f its strategy in the business ltherprovjders Centre information on other training the business plan plan. The performance o f providers the strategy shouldbe reported in the annual progress reports - DLC'S responseiperformance Performance on the competitive strategy reviewed and incorporated in annual progress reports by D L C 2.2. A viable, self-sustaining and well managed institution established to pi vide relevant high qua ty services I s itproviding high -Customer satisfaction Resultso f the basic post Results o f the analysis by quality, responsive, feedback training (level 1) D L C will be usedon a and customer questionnaires compiled quarterly basis to improve orientated services quarterly for all courses services -Perceptions from Perceptions sought during The results o f the analysis DPM and other consultative meetings held and the change process stakeholders and with D P M at least each should be documented in - 49 - I partners quarter and inwider (govt. progressreportshusiness agencies, academics, private plans and Minutes o fthe sector, etc.) consultative Board meetings held at least twice a year -Reports demonstrating Quarterly and annual progress that management is reports by DLC include responsive to changing change processes initiated as a needs andproviding result o fproblems, changes, or adequate direction findings identified and also (pricing, marketing, reported fund-raising, awareness building) Are theproject s -Assessment of actual DLC quarterly and annual Businessplans The results of DLC's expected immediate performanceagainst review ofplannedinputs, PIP review, including the results, outputs, business plans, activities, outputs, and results PAD feedback from the Board, activities, and inputs including performance against businessplan DLC and WB will be used being delivered? indicatorslisted inthe by DLC to adjust or log frame/M&E plan Implementationreviewedby outline new directions in DPM (comments formally the businessplan and/or submittedfollowing each the M&E planfollowing submission) and the Board the quarterly and annual (comments obtained during the assessments Boardmeetings) inresponse to quarterly and annualprogress Results of the analysis and reports submittedby DLC the change process should be documentedinthe Supervision missions (annual) subsequent quarterly and and mid-term review assess to annual progress reports/ what extent and with what businessplans and degree of efficiency operational Minutes of the Boardand programsandactivities product the consultativemeetings. the desiredresults and their Information requiredfor coherence (DPWWB) the supervisionmissions, mid-term review and end-projectevaluation Are the identiJied -Status of the critical DLC incorporates project risks il&E plan 'he resultsof DLC's reviev, project risks or the risks and progress on inthe M&E plan and annual ,og frame ncludingthe feedback from critical assumptions actions taken to mitigate businessplans. Status and business Plans he Board, DLC and WB indicated in the M&E them action on risks are reviewedan1 vi11be usedby DLC to plan and the businesr reportedon as part of the .djustor outlinenew plans? Are the risks quarterly and annual reporting lirections inthe business being monitored and process ilan and/or the M&E plan are the agreed ollowing the quarterly and actions being taken nnualassessments to mitigate them? Cesults of the analysis and he change process should b locumentedinthe ubsequent quarterly and .nnualprogress eportshusinessplans and - 50 - Iinutes o f the Board and the onsultative meetings. iformation requiredfor the upervisionmissions, lid-term review and nd-uroiect evaluation re resources used in -Financial performance Audits organizedby DPM Findings sharedwith the n optimal manner, -Operational annually Board and D L C and used ndfunds spent in performance by management to outline ccordance with work Annual financial reviewsby new directions, policies lans and using the D L C contained in the and procedures. The ight procedures? financial reports change process shouldbe documented in the subsequent annual progress report r the Centre moving .Performance on cost >LCmonitors on a monthly 'indingsusedby DLC to ,wards financial :ecovery and utilization lasis the revenues and djust the businessplan, ustainability? *atetargets below: xpenditures including cost icluding the training and 0 Cost recovery at least ecovery and utilization rates iarketing strategies at 20% o f the vithreportingon a quarterly operating costs for Y 1 40% for Y2, 60% for ndannual basis on actual vs. kesults o f the analysis and Y3, 80% for Y4 and ilanned financial targets i e change process shouldbe Centre is self .ocumented inthe sustaining by Y 5 ubsequent quarterly and Utilizationrates are a nnual progress least: 15%, 25%, eportshusiness plans and 40%, 50%, and 65% Ainutes of the Board and thc for each o f the first onsultative meetings five years respectively nformation required for the upervision missions, nid-term review and nd-project evaluation low effective are the -Summary report on 'he client and training provide1 )LC participation plan >LCanalyses the results an( arious levels of participation iarticipation is being monitored section in the annual djusts participation articipation performance nother sections of this plan. musiness plan) trategies to improve Ina quarterly and annual basis ierformance >LCwill summarize this nformation to answer the 'he results shouldbe valuation question and include ncorporated inbusiness review on the Board, KIA, ilansiprogress reports and ii >PMand donors participation. onsultative meetings, Boarc 'he review will report on: (i) essions, and supervision ctual participation versus nissions xpectations set out in the iarticipation plans; (ii)the iarriers to greater participation; nd (iii)DLC's performance on mprovingparticipation )LC should incorporate DPM's nput inthe development o f this eporting re the different -Summary report in YB annually reviews 'AD lesults o f the evaluation are -51 - sstitutional iide Memoire informationgenerated from the Correspondence ontained inthe Aide apacities built to a M&Eplan and contained in PIP 4emoires and used to adjust atisfactory level as progress reports, as well as MOP olicies, procedures or the nvisaged in the informationfrom consultations D L C Progress reports roject designas 'esign (DLC, DPM during annual supervision and businessplans ppropriate. The change roject coordination, missions Previous Aide Memoire Nrocess is incorporated in loard, and the BoardMinutes ubsequent business plans /orking DPM reviews on ndprogress reports by DLC rrangements implementation etween them)? nformation requiredfor ubsequent mission, the id-term and end-of-project I valuations as the DLC Comparison o f training -The Market StudyiTraining The Market D L C analyses the results nproved reach and ffered andpreviously Needs Assessment repeated Study/Training Needs for strengths, ccess? navailable locally annually incorporates Assessment opportunities, gaps, and informationon courses that weaknesses. Issues Growth inparticipant are demanded and unavailable Enrollment information should be addressed and umbers (incl. locally. D L C assesses this incorporatedinbusiness pesilevels o f against what it offers Sample report o f people plans/progress reports and rofessions and client (annually) who showed interest bui in consultative meetings, )cations) didnot apply Board sessions, and -DLC compiles participant supervision missions % (tbd) o f Govt. and growth in numbers and DPM's contingency pla rivate sector officials payment sources (annually) to mitigate the risk o f dling to pay for the inadequate Govt. :rvices in comparison -DLC's reviews results o f the training funds for those subsidized. awareness and marketing training strategy in the business plan Ability o fthe DLC to (annually) ,C's Plan to reduce ffer lower cost training rriers to greater iithmore participants -DLC reviews progress made rticipation on reducing barriers to greater Performance on participation (annually) wareness and iarketing strategy - D L C reviews cost of DLC training vs. overseas or Performance on face-to-face training annually :solving barriers to based on a sample study of two reater Darticiuation courses a Year I Output 3: A mecha sm establishedand utilized to enable an in-depthunderstandingof key successes and failures and to allow for the use of lessons learnt and experiences gainedat local and global levels - ken and programdesigned ar implementedto addrc 9 needs Is M&E - Timely and D L C reviewsprogress on the 4&E plan Findings usedby DLC information being comprehensive implementation o f the M&E and D P M to adjust the generated at all progress reports and plan on a quarterly and Log frame M&E plan which may levels and in a business plans that annual basis and includes include aspects related to timely, efJicient, contain M&E this informationinprogress capacity, resources, and cost effective? iIlfOllTlatiOnat all reports and business plans reporting formats, levels (as per the M&E procedures or planning, plan) D P M reviews the quarterly etc. and annual progress reports -Actual and annual business plans, in Results o f the analysis and - 52 - mplementationo f particular: (i) quality in the change process should /I&E activities are terms o f M&E reporting; (ii) be documented inthe lelivered on time and usefulness o f the M&E- are subsequent quarterly and liithinthe change processes initiated to annual progress reports. equirements set in the address findings and reported Information required for /I&E plan on? and (iii) actual the mid-termreview and performance on the end-of-project evaluation implementation o f the M&E plan. Feedback contained in the formal comments submitted quarterly Consultant desk study to review M&E implementation, including generation, capacity, delivery, quality, cost, efficiency, and relevance (hired in Y 2 by DPM) 3.2 An M&E systei that is realistic,effecti and provides informationat 0th localand global le !IS ! Is the M&E able to Description o f where :onsultant desk study M&Eplan, progress Findingsusedby DLC provide useful ndhow M&E has or racking M&E flow, lessons reports and business and DPM to improve lessons and ,as not helped to Irawn, decisions and related plans internal and external improve the mprove the project. ierformance (hiredby D P M usefulness o f M&E. ongoing n Y 2) Resultsincorporated in functioning of the Positive feedback on eedback from users businessplans & progress project? he value and innual survey for users on the reports sefulness o f the M&E isefulness o f the shared nformation (and why) nformation 3 obtained from D L C Results o f the analysis and ndDPM staff and Useful lessons identified the change process should lther stakeholders once a year by D L C through be documented in the consultations. Relevant subsequent quarterly and Positive feedback on information i s collected, and annual progress reports. he value and shared with feedback sought. Information requiredfor .sefulness o f the Examples o f such lessons the supervision missions, :ssons learnt (and could include the merits o f mid-termreview and lihy) is obtained from the DLC, conditions end-of-project evaluation x a l and international necessary for successful gencies implementationhest practices, how the Centre relates with the wider public service Kenya context, evaluation experiences, etc. (The information required for these useful lessons i s already being generated as Dart o f the M&E dan) AdditionalInformation: 1) Linking Training to the Capacity to Design, Plan, and Manage Social and Economic Development Policies and Programs: The designwill identify a specific group o f people who will serve as the target group for assessing the impact o f the - 53 - training. This can only be done when the DLC i s operational and the first trainees are confirmed. Unlike the case in Burkina Faso, a readily identifiable group is not known in advance inKenya. The requiredbaseline data on their performancewill be collectedboth from themselves and (most importantly) their supervisors prior to the training. The data will then be compared to the end-of-training evaluations, i.e. levels 1 and 2, and after six months using level 3 evaluation (described below) to determineimpact. Pre-test: It is proposedthat this information includebasic data on at least the first 300 trainees. More specifically the DLC will collaboratewith the DPMunit to: collect baseline data from the first 100 civil servants, 100 private sector, and 100 civil society trainees who request training and whose job description includes designing, planning, and managing social and economic development policies and programs. Each prospectivetrainee will fill out a survey identifying specific tasks that helshe does as part of designing, planning, or managingsocial and economic policies or program. Eachprospectivetrainee will identify the specific tasks inwhich helshe would like to improve hislher skills. It is impractical andprobablynot necessary to interview the supervisors o f all the trainees. It is recommendedthat the M&E unit aim to: collect information from a sample comprising 10% of the supervisors of the trainees, or 30 people being, 10 from each sector (public, private and civil). Suitable sampling techniques will ensure the 30 supervisors are representative of the supervisors of all the 3,000 trainees. Interview or administer questionnaires to the supervisors so as identify the tasks of the trainee that are consistent with designing,planning, managingsocial, and economic development policies andprograms. Identify areas inwhich the trainee(s) need(s) capacitybuilding. Eachsupervisor will be presentedwith outlines o f the proposedtraining programs andrequestedto: assess the relative saliency of the proposedareas of training for upgradingthe trainees' performance. PostTest: At the end o fthe training the DLC will conduct its own Level 1and 2 evaluationand no earlier than six monthsafter the training, a follow-up study should be done on the 300 trainees and the sample o f 30 supervisors. Again, questionnaires would be the simplest tool with questions that mirror what was asked before the training. For example, the trainees would be asked to: identify components of hisherjob dealingwith designing,planning or managingsocial and economic development policies and programs; specify the extent to which skills or knowledgeinthese areas hadbeen addressed inthe training; specify the extent to which helshehad acquirednew skills or knowledge inthe training; specify the extent to which helshe hadusedany o f the new skills or knowledge; and specify the extent to which (and why) designing,managingor planning hadbecome easier or harder as a result of the training. - 54 - M&EOrganization& Management (responsibilities for the various tasks or processes indicated in the M&Eplan) Monitoring & Evaluation information collected as Analysis conducted and per the M&E Plan: corrective actionslplans initiated: DLC/DPM t Findings and change processes Adequate inputs, review, I recorded and shared in kev reuortslulans: DLC decisions sought during the key I events and planninglreporting processes identified in the M&I5 I plan: DLC/DPM/Board - 55 - Additional Annex 12: Implementation Summary Information - KENYA: Development Learning Centre Project Ley Consultancies (all Key Events/ Cey Reporting Key Planning KeyAgreements iredbv DPM excent*) ResDonsibilitv )ocuments/ResDonsibilitv Documents 'irstMarket Study - DLC Mgt.Meetings 2uarterly Progress Reports M&E Plan& Logframc Subsidiary rainingneeds, demand, (weekly)-DLC DPM)during the - DPM with the DLC Agreement between lients, training :onstruction/installation the Government& Nroviders, courses ihase the DLC niavailable, etc. preparationphase) A&E training & DLCiDPM 2uarterly Progress Reports-Business Plans MOUbetweenthe 'laming(completed planningimgt DLC) [annual) (DLC) DLC and GDLN Jithin 2 monthsof meetings(monthly) includingaspects Iirector'sappointment) identifiedinthe M&E plan i.e. the competitionstrategy, the planto reduce barriersto greater participation, andthe strategy to build local traininguroviders innual Progress Reports Strategypaper on Agreement between ientify Director (quarterly) - DLC DLC) integratingand linking KIA and DLC the DLC with the Govt trainingstrategy - DPM 'argeted annual market Supervisionmission! 3oardMinutes (DLC) Annual Projects' WB-Govt.'s DCA, urveys basedon first (annual) - DPM trainingneeds list - PA ,ear's experience and DPM lther M&E requirements dentifiedinthe M&E dan e.g. non-enrollment ssessment, other rainingproviders, etc 'raining courses MidTerm review 4ide Memoires(WB) DPM's contingency levelopment - DLC* (1st Q, 3rdyear) - planto mitigatethe risk of inadequate Governmenttraining funds for training iinancial Audit (annual) End-of-Project 2onsultative Meetings evaluation (3rdQ, viinutes (DLC) 4th year) - DPM nstitutional audit (Year Regularconsultative IPMformal progress 1 meetingswith other :omments-quarterly and stakeholders, donors tnnually & trainingproviders with at least one annual formal session for all stakeholders - 56 - Review of M&E system's implementation & use (Year 2) Training impact evaluation level 3 for: target group (Year 1 and '3) and case study (Year 2) Other Kev ImDlementation documents PI ect ImDlementation Plan (PIP Manual of Procedures,Procurement Plans - -57 - Additional Annex 13: Financial Model KENYA: Development Learning Centre Project A. Financial Projections 1.Capacity UtilizationProjections The financial projections of the financial model are based on the two assumptions below: (a) Total Capacity o f the DLC: number of seats 30 number of days 260 (b) Average Price ofa session per day per participants (inUS$): pricelday 55 The objectives is to reach financial sustainability at the end of the fourth year of operations. The table below shows that the equilibrium is reached when the capacity utilization ratio equals 64% (i.e. at least 5,000 traineeslday). years In operating I 1 2 3 4 5 6 7 Item I Unit lNote Existing DL Converted WBI Courses Number of courses converted No 16 16 18 17 2C 20 22 Presentations per site Nolyrlsite 1 6 0 7 0 8 0 9 0 100 100 1CO Average length Days 5 5 5 5 5 5 5 Average participant number Nolcourse 10 14 22 2 C 25 25 25 Participant days dayslyear 300 490 880 1080 1250 1250 1250 New WBI Courses Number of courses converted No 22 24 25 30 35 35 35 Presentations per site Nolyrlsite 1 7 11.0 15.0 18.0 22.0 22.0 22.0 Average length Days 5 5 5 5 5 5 5 Average participant number Nolcourse 10 16 20 22 25 25 25 Participant days dayslyear 350 880 1500 1980 2750 2750 2750 Policy Dialogues Number per year Nolyrlsite 20 22 24 24 25 25 25 Average length Days 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Average participant number No1course 12 16 20 25 30 30 30 Participant days dayslyear 120 176 240 300 375 375 375 Courses Run by Other Institutions 2 Number per year Nolyrlsite 12 14 16 18 20 20 20 Average length Days 2 2 2 2 2 2 2 Average participant number Nolcourse 14 18 20 22 25 25 25 Participant days dayslyear 336 504 640 792 1000 1000 1000 Total Participant Dayskitelyear 1106 2050 3260 4152 5375 5375 5375 Capacity Utilization 3 14.2% 26.3% 41.8% 53.2% 68.9% 68.9% 68.9% Note: 1. Average course presented once a year, but only on average to 15 sites at a time. - 58 - 2. WTO, ILO, ITU, WIPO, WWF using their own origination facilities - 3. Maximum capacity is 260 days x 30 participants IREVENUE PROJECTIONS I FY 04 05 06 07 08 09 Existing DL Converted WBI Courses 16,500 26,950 48,400 59,400 68,750 68,750 New WBI Courses 19,250 48,400 82,500 108,900 151,250 151,250 Policy Dialogues 6,600 9,680 13,200 16,500 20,625 20,625 Courses run by other institutions 18,480 27,720 35,200 43,560 55,000 55,000 SUM REVENUE 60,830 112,750 179,300 228,360 295,625 295,625 The lessons learnt from DLCs in other countries show that some GDLN Centers generate significant revenues from other activities such as renting their facilities for face-to-face courses, projects supervision, etc. B. Cost Recovery Inthe Senegal case, the DLC recovered about 60% of its operating costs inFY02. As inSenegal, Africa GDLN Centers are making regular progress. In order to increase their revenues, DLCs Management Teams decided to improve their work inthree main areas: (a) benefitting from their institutional anchorages to give the DLC a multi-sectoral focus and high visibility: the idea would be to make the DLC the "default" capacity building tool for civil servants. When a trainingheminar i s required, the administration should look at the D L C first and see what i s possible. The objective here i s to get a long-term agreement between the GOK and the DLC: part o f the administration funds for civil servants capacity-building could be used by (reserved for) the DLC. D L C and GOK could define a capacity-building plan for the coming year. (b) role of the Bank: GDLN Services and the Wb Africa Region are defining together the possible use o f this tool for training components in IDA-financed projects: most o f the IDA-financed projects comprise a capacity-buildinghrainingcomponent. The idea would be to use the GDLNto broadcast these trainingsheminars (when possible) and organize competition among content providers. This could be generalizedto all the WB-financed projects. (c) role of donors/private sectors: the D L C mustbe very pro-active ingetting other donors involved. GDLN Services inWBI works on partnership at the institutional level while the DLC management team plays its role inconvincing local donors o f the potential o f such a tool. - 59 -