Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) Support for Capacity Dev't of the AUC and other African Union Organs (P126848) AFRICA | Africa | Governance Global Practice | IBRD/IDA | Specific Investment Loan | FY 2014 | Seq No: 5 | ARCHIVED on 27-Jun-2017 | ISR28845 | Implementing Agencies: African Union Commission, African Union Commission Key Dates Key Project Dates Bank Approval Date:06-May-2014 Effectiveness Date:05-Nov-2014 Planned Mid Term Review Date:29-Sep-2017 Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2018 Revised Closing Date:31-Dec-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) Strengthen AUC’s capacity to facilitate economic development results and transformation through enhanced institutional efficiency. This will be achieved by means of enhancing the AUC's internal human resources and management systems, and supporting result-oriented external partnerships and collective actions designed to enhance the implementation of regional economic development initiatives in priority areas (e.g. regional trade, energy, infrastructure, governance, natural resource management) relevant to the AFR IDA portfolio for the benefit of African Union member states, the Regional Economic Communities and African citizens. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name i. Strengthening Institutional Capacity:(Cost $15.00 M) ii. Facilitating Economic Development Results with Stakeholders:(Cost $10.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Substantial  Substantial 6/27/2017 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) Implementation Status and Key Decisions Since the previous ISR, the project disbursement has increased from around 68 percent to 83 percent, following active dialogue and engagement between the Governance Global Practice, Partnerships and Regional Integration teams, peer-to-peer learning, technical assistance, and advancement of capacity development tasks related to the AUC and other organs (e.g. African Court). Also, discussions with AUC staff and development partners have been continued for knowledge sharing and coordination. The overall PDO indicators and other intermediate indicators show tangible progress, which is encouraging and indicates eventual success. The AUC budget execution rate has increased from 68 to 82 percent, exceeding the target set for the year (75 percent). Furthermore, the number of AU organs (e.g. African Court) having strategic plans as per the AU vision and mission has increased to four. The audited financial statements of the AUC is now publicly available on AUC’s website. Several AUC staff are now International Public Sector Accounting Standards (IPSAS) CIFPA certified. Furthermore, the AUC procurement compliance rate now stands at 85 percent against the target of 70 percent. A state-of-the-art AUC data center and a paperless conference management IT system is operational and has resulted in operational cost savings of about US$600,000. The project was nominated for EFI VPU Award this year but did not make it to the list of final awardees. The team plans to compete again for the next round of VPU awards. However, some delays are also observed. The design of a communication plan for the launch of AUC branding events and external information campaigns have not been done, partially due to Senior Management Change at the AUC and organizational change in the AUC Information and Communication Department (now the plan is to have it done by end December 2017). The recruitment of experts for the development of an AUC Scorecard in collaboration with RECs and other stakeholders is slower than expected. This is partially due to the complex nature of the task, coordination challenges, and the fact that because it is being done for the first time at the AUC, extensive consensus building is required. As per Country Management Unit (AFCC2) guidance in the previous ISR, the team engaged with AUC to advance work on project’s support to the design of the innovative external partnerships with the RECs and civil society to promote and sustain intra-African trade and good governance. The AUC has developed the framework with help of international experts and the design is under AUC management review in line with the AU transformation agenda. Overall collaborative, participatory and peer-to-peer learning focus for project development has been continued since the project was launched in order to provide implementation support. The AUC has appreciated this approach and collaboration with the Bank so far. The development partners are also now more aware and appreciative of the Bank’s value added to the AUC, and to the overall capacity development programs. Procurement planning, project audit, interim financial management reports and fulfillment of other fiduciary controls have been carried out on time, with active coaching and training provided to AUC staff by Bank experts. These technical exchanges were made possible with the active participation and guidance of various units and Global Practices at the Bank, in collaboration with the Africa Reginion Vice President’s Office, the Country Management Unit (AFCC2) and the External Communications Department (AFREC). In view of the change in AUC management, the team plans to conduct midterm learning review in fall 2017 (or earlier) and assemble information for drafting of additional financing documents. Efforts will be made to closely fulfill the directive of the RVP with respect to AUC additional finance documentation and stakeholder consultations. At the current pace of project implementation, additional resources may be needed in early 2018 to meet AUC capacity development requirements ahead of the closing date at end December 2018. Summary of salient activities of the project are as follows: Component 1 – Strengthening Institutional Capacity AUC Restructuring and Organizational Design Prepared and Presented to the Heads of State. The first consultancy for the design of a new organizational model for the AUC that conforms to Strategic Plan 2014-17 and Agenda 2063 requirements has been completed which is serving as an input to the AUC high level commission on AU transformation. This first phase of work included the design of the conceptual framework and organizational scenarios, which were presented to the Heads of State following recommendation from the Permanent Representative Committee. The Heads of State Summit appreciated the AUC’s approach and the technical work completed so far. Based on the approval, the AUC is now undertaking the follow on phase related to the AU Organs, developing a consolidated framework to enhance the AUC’s organizational efficiency and services. The necessary consultative process of stakeholder engagement has been completed. The organizational plans being developed also cater to the self- financing needs of the AU, whereby the AUC programs will be more focused on member states and have a higher in-country presence. Furthermore, strengthening the AUC’s structure expands its attention to economic development and regional integration, helping to achieve its peace and security agenda as a people-focused organization. As part of this process, the AUC developed a new ethics code for staff, set of staff rules, and human resources practices, all of which were approved at the Heads of State Summit. First IPSAS Compliant AUC Financial Report Prepared and Major IT/SAP Upgrade Initiated. Using project resources, the AUC and AU Organs such as the African Court have successfully completed training on IPSAS. Necessary IT equipment for finance officials and managers has also been procured. Based on technical support, the AUC has prepared its first ever IPSAS-compliant financial report for the year 2015. The experience with the 6/27/2017 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) use of IPSAS guidelines and norms has been positive and efforts are being made to mainstream these guidelines for future reporting. Based on technical discussions, the Bank will continue to provide technical support for the development of the three-year FM upgrading plan, as well as the implementation of SAP upgrades, sharing our corporate experience in SAP deployment in financial reporting and IT management, and good practice experience from countries and regional entities in Africa and beyond. Launch of Phases 1 and 2 of a state-of the-art ICT system in the AUC successfully completed. With Bank support and other donor assistance, a modern data center has been designed, tested and successfully launched. Up-to-date IT equipment for staff has also been procured through International Competitive Bidding (ICB) and training is being provided to users. Consequently, the staff IT footprint increased from about 400 to 1500 users, and new automated services (e.g. SAP) have been added. The new AU data center is in line with international standards and facilitates efficient use of resources. The center offers “green IT” that saves over 40% of power compared to the traditional IT, centralized management that gives clear visibility of the system for proactive support, scalable solutions to host future demands of the AUC and AU Organs, and more space for end users to save data, thereby retaining information, data and knowledge for the organization. The website has been re-designed and features such as web streaming, and social media have been added. A top-of-the-line Smart IT conference management system has also been designed and implemented after benchmarking with the EU, UN and World Bank. The paperless, Lenovo-based system was launched at the AU Heads of State Summit at the end of January 2016 and has resulted in cost savings. It not only provided seamless sharing of documents and proceedings of high-level and technical meetings, but also has an online database of AU declarations and proceedings since 2002 (after its establishment), and historical information from the OAU since 1963. Procurement Unit Strengthened and e-procurement Review Initiated. The AUC has hired procurement experts to bolster the work of the procurement unit and has also recruited a new unit head. The procurement team organized an AUC and AU organ-wide procurement planning and skills enhancement workshop to help prepare the 2016 budget and outline procurement packages to alleviate delays and improve procurement compliance. An e-procurement feasibility study was initiated to review the internal systems and prepare potential options for introducing e-procurement in the AUC and the AU organs over the next few years. The review has already been completed and next steps are being planned. Human Resource Development: Development of Code of Ethics, Training Needs Assessment, e-recruitment, Set-up of the AU Leadership Academy and Initiation of Staff Training. The AUC has prepared a code of ethics for staff. It has also prepared new staff rules. In order to fill staff positions, e-recruitment has been initiated and the speed of recruitment has been increased (e.g., director and unit head level vacancies, which previously took almost a year to fill, are now being processed through widely disseminated open recruitment within 4-6 months). Skills and training needs assessments were carried out for headquarters and regional office staff, and a training program has been initiated based on the results. Training for all staff is targeted to the main areas of deficiency: use of IT systems; team building and collaboration; project management skills and reporting; and management information systems. In addition, skills building is planned for areas such as SAP, IPSAS, e-procurement and related organizational change areas, among others. The findings from the training needs assessment and other organizational reviews will be used as a complement to the restructuring design work, enabling policy decisions related to improved staff performance and incentives systems. To address medium- to long-term training, knowledge and leadership needs of the AUC and AU organs, RECs and other stakeholders, the AUC established an AU Leadership Academy (training center) as part of its organizational restructuring. This activity has been supported by the development partners including the EU, USAID, GIZ and the Bank. The AUC has appreciated the collaborative approach to help address the gap in this important area for the AUC. The technical reports and diagnosis done under the project and benefitting the work of the high-level AU reform commission appointed by the Heads of State (e.g. comprising of President Kagame and Mr. Kaberuka, former President of the African Development Bank) whose work will be presented for consideration and decision at the upcoming AU summit in July 2017. Component 2 Facilitating Economic Development Results with Stakeholders Framework development for AUC and RECs engagement on regional development priorities. Technical support was provided to the AUC for the design and testing of a framework for the engagement of RECs and other stakeholders, to be used for partnering for results on economic development areas. A collaborative and participatory process was adopted, many RECs participated, and the workshop with development partners was also organized. The specific pilot work plan for the initiation of partnership tasks based on the above-noted framework (e.g. on free trade, governance, statistical systems) will be finalized after approval by AUC's new management. Monitoring of AUC declarations and agreements using Smart IT system and database development. A major breakthrough has been made, and past AUC agreements and declarations are now available online in a database through the Smart IT conference system, accessible by heads of state, delegates and AUC officials. The system is now fully operational. The database has information on declarations and working documents dating back to 1963, accessible via a secure password. The legal associates in the Office of the Legal Counsel also contributed to this effort by preparing progress reports and sharing knowledge. AUC scorecard 2017/18. The Bank has shared the World Bank scorecard and M&E experience with the AUC, in collaboration with the development partners group (including EU, GIZ, SIDA). A consulting firm to support the AUC in the development of the AUC scorecard is being hired. The process has faced several delays due to the complexity of the task and procurement challenges. Since this is the first time an AUC scorecard is being developed, agreeing on a common definition with select AU organs and RECs has been cumbersome. The procurement process is now significantly advanced and the firm is expected to be hired in the coming weeks. 6/27/2017 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) African Court Capacity Support in collaboration with EU and GIZ. The AUC supported the African Court in the development of a strategic plan for the next five years, through consultations with internal staff and other stakeholders. The African Court in now planning the judicial dialogue as per this plan in fall 2017. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial 6/27/2017 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) Environment and Social  --  Low  Low Stakeholders  --  Substantial  Substantial Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Number of AU institutions that have strategic plans as per the AU vision and mission (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 3.00 4.00 5.00 Date 31-Dec-2013 30-Sep-2016 30-Jun-2017 31-Dec-2018 PHINDPDOTBL  An improved AUC budget execution rate that demonstrates better organizational efficiency (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 55.00 68.00 82.00 80.00 Date 31-Dec-2013 30-Sep-2016 30-Jun-2017 31-Dec-2018 PHINDPDOTBL  Number of innovative external partnerships with RECs and civil society for promoting and sustaining intra-African Trade and good governance, in collaboration with development partners, relevent stakeh (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 31-Dec-2013 30-Sep-2015 31-Jan-2017 31-Dec-2018 PHINDPDOTBL  Enhanced capacity for monitoring the implementation of AU agreements and programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 6/27/2017 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) Date 31-Dec-2013 30-Sep-2016 30-Jun-2017 31-Dec-2018 Overall Comments Intermediate Results Indicators PHINDIRITBL  Institutional structure of AUC reviewed and strengthened (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 31-Dec-2013 30-Jun-2016 30-Jun-2017 31-Dec-2018 Comments Significant progress has been made so far. AUC restructuring and organizational design has been prepared and presented to the Heads of State. The first consultancy for the design of a new organizational model for the AUC that conforms to Strategic Plan 2014-17 and Agenda 2063 requirements has been completed which is serving as an input to the AUC high level commission on AU transformation. This first phase of work included the design of the conceptual framework and organizational scenarios, which were presented to the Heads of State following recommendation from the Permanent Representative Committee. The Heads of State Summit appreciated the AUC’s approach and the technical work completed so far. Based on the approval, the AUC is now undertaking the follow on phase related to the AU Organs, developing a consolidated framework to enhance the AUC’s organizational efficiency and services. The necessary consultative process of stakeholder engagement has been completed. The organizational plans being developed also cater to the self-financing needs of the AU, whereby the AUC programs will be more focused on member states and have a higher in-country presence. Furthermore, strengthening the AUC’s structure expands its attention to economic development and regional integration, helping to achieve its peace and security agenda as a people-focused organization. As part of this process, the AUC developed a new ethics code for staff, set of staff rules, and human resources practices, all of which were approved at the last Heads of State Summit. The upcoming July 2017 Heads of State summit is expected to deliberate and make decisions with respect to the AU transformation agenda including the AUC organizational structure and operational matters. 6/27/2017 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) PHINDIRITBL  International Public Accounting Standards (IPSAS) adopted in AUC and select AU Organs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 31-Dec-2013 30-Sep-2016 30-Jun-2017 31-Dec-2018 PHINDIRITBL  Service delivery of key services enhanced (e.g. procurement) leading to improved satisfaction of stakeholders (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 8.00 8.00 3.00 Date 31-Dec-2013 30-Jun-2016 30-Jun-2017 31-Dec-2018 Comments Significant accomplishments include: Human resources and legal office have been realigned. Recruitment time has been reduced by 90 days. Number of grievance dropped by 70%. E-recruitment was launched http://aucareers.org The audited financial statement for the year ended December 31, 2015 prepared using International Public Sector Accounting Standards and with an unqualified (clean) opinion, is now publicly available on AUC’s website https://www.au.int under Documents. Management accounts are now prepared in a timely manner every end of month for senior management to have up to date financial information in their decision making. Large cash advances for travel/workshops have also seized with the introduction of visa corporate debit cards issued by Ecobank. The budget for 2017 was also approved in a timely manner and for the first time in AUC’s history. A new procurement framework as per international standards has been launched that will enable e-procurement. A state-of-the-art AUC data center and a paperless conference management IT system with database of all AU treaties from 1963 to present is operational. The AUC website was upgraded to highlights the status of AU agreements and webstreams events (e.g. AU summit closing watched by >20000). An AU mobile App for iPhone and Android (keyword: AU 28th Summit) has been launched to facilitate collective action (AUC holds >700 meetings a year where >15,000 participate) and link to AU treaties. 6/27/2017 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) PHINDIRITBL  Improve compliance rate for procurement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 80.00 85.00 80.00 Date 31-Dec-2013 30-Sep-2016 30-Jun-2017 31-Dec-2018 PHINDIRITBL  State of the art AUC ICT data center established (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 31-Dec-2013 30-Sep-2016 30-Jun-2017 31-Dec-2018 PHINDIRITBL  Branding events aimed at promoting AUC programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 6.00 Date 31-Dec-2013 30-Jun-2016 30-Jun-2017 31-Dec-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P126848 IDA-H9390 Effective XDR 16.15 16.15 0.00 13.42 2.73 83% Key Dates (by loan) 6/27/2017 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Support for Capacity Dev't of the AUC and other African Union Organs (P126848) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P126848 IDA-H9390 Effective 06-May-2014 08-Aug-2014 05-Nov-2014 31-Dec-2018 31-Dec-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/27/2017 Page 9 of 9 Public Disclosure Copy