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: 4 | ARCHIVED on 30-Nov-2016 | ISR25444 | Implementing Agencies: African Union Commission Key Dates Key Project Dates Bank Approval Date:06-May-2014 Effectiveness Date:05-Nov-2014 Planned Mid Term Review Date:31-Mar-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 11/30/2016 Page 1 of 8 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 The project has made significant progress. During the last months, the Project disbursement has increased from around 18 percent to about 58 percent (US$14.5 million). The amount of commitments (signed contracts) is even higher at approximately 70 percent. The progress with overall PDO indicators and intermediate level indicators is encouraging and indicate eventual success. The AUC budget execution rate has increased from 55 to 68 percent, exceeding the target set for the year of 65 percent. The number of AU organs (e.g. African Court) having strategic plans as per the AU vision and mission has increased from two 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 80 percent against the target of 70 percent. A state-of-the-art AUC data center and the paperless conference management IT system is operational and has resulted in operational cost savings. 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 a management change in the AUC Information and Communication Department (now the plan is to have it done by end June 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. To facilitate these processes, the Bank will share with AUC its external communications experience as well as the World Bank’s Corporate Scorecard documentation. 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 GPs at the Bank, in collaboration with the AFRVP Office, AFCC2 and AFREC. The team plans to conduct mid term review in early 2017, and continue its strategic, proactive support to the AUC to maintain the momentum, scale-up capacity development efforts and disseminate results. Efforts will be made to closely follow the AUC leadership transition, process envisaged in mid 2017, and to keep stakeholders informed and make adjustments as needed. At the current pace of project implementation additional resources may be needed in end 2017 to meet AUC capacity development requirements ahead of the closing date in 2018. This matter may be discussed during the MTR planned for 2017. Component 1 – Strengthening Institutional Capacity - Some Salient Activities 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 (carried out by Bain Consulting). 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 second 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 is underway. 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 use of IPSAS guidelines and norms has been positive and efforts are being made to mainstream these guidelines for future reporting. The new finance director is preparing a three-year plan to expand these experiences and fast-track the implementation of IT/SAP modules for budget planning and grant management, in addition to other measures that streamline day-to-day finance operations at the AUC. Vendors for the SAP upgrade have been identified.. As a result of financial management capacity support, IPSAS implementation, related efforts in data center modernization, procurement planning, and business process reengineering efforts (described below), the overall budget execution rate of the AUC is showing concrete improvement. The development partners have appreciated these advances and recognize the AUC’s efforts to strengthen the FM system and enhance transparency systems. 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 (about US$600,000). It not only provided seamless sharing of documents and proceedings of high- 11/30/2016 Page 2 of 8 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) 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. The system was deeply appreciated by the heads of state, and was reported in local and international media as a major step forward for the AUC in improving organizational performance. The IT modernization will continue during the next few months to set up viable video conference systems and provide training to staff in the AUC headquarters before the deployment of modern IT systems in AUC regional offices and AU organs. Its overall purpose is to enhance communication, data quality and management information systems. 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. The skills training of AUC staff is being continued to gradually raise the skill level and improve the quality of documentation and reporting. The AUC is planning to streamline procurement manuals by bringing them in line with international standards (e.g. UN and WB) over the next few months. 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, following necessary approvals from the Heads of State in the January 2016 summit. 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 (an appreciation note to the Bank and other development partners was sent to this effect, and is available in project files). Component 2 Facilitating Economic Development Results with Stakeholders - Some Salient Activities Framework development for AUC and RECs engagement on regional development priorities and Drafting of the Pilot Testing Plan. 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, all RECs participated, and the workshop with development partners was also organized. The specific work plan for the initiation of partnership tasks based on the above-noted framework is being planned to support pilots on topics such as free trade, governance and statistical systems. Careful analysis and prioritization is being undertaken to initiate one pilot during the period 2016-17. 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 was rolled out in January 2016 and has been now fully operational. The database has information on declarations and working documents dating back to 1963, accessible via a secure password, and includes the following: 1. All working documents of the last 17 Summits (from 2008 to-date) (1,100 Documents in 4 Languages) 2. All AU Assembly Decisions/Resolutions and Declarations since Durban 2002 (729 Decisions/Resolutions in 4 Languages) 3. All AU Executive Council Decisions/Resolutions since Durban 2002 (903 Decisions/Resolutions in 4 Languages) 4. All OAU Assembly of Heads of State and Government Resolutions/Decisions from 1963 to 2002 (469 Resolutions/Decisions in 2 Languages) 5. All Council of Ministers Resolutions from 1963 to 2002 (2021 Resolutions in 2 Languages) AUC scorecard 2017/18. The AUC has assigned staff to begin background planning for the development of the AUC scorecard, and to create a legal associate program that will monitor AUC agreements and decisions on a regular basis, using a tracking system based on the Smart IT conference database (noted above). The monitoring and evaluation process will benefit from the mapping exercise of AUC and REC activities, recently completed by the AUC. 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), so that possible synergies and cost sharing may be explored. A consulting firm to support the AUC in the development of the AUC scorecard potentially starting 2017 is being hired using Bank procurement procedures. African Court Capacity Support: Strategic Plan 2016-20 Prepared and African Judicial Dialogue Organized in collaboration with EU and GIZ. In fulfilment of the PDO-level indicator, 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 plan has approved by the African Court management. 11/30/2016 Page 3 of 8 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) 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 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 3.00 5.00 Date 31-Dec-2013 31-Mar-2016 30-Sep-2016 31-Dec-2018 11/30/2016 Page 4 of 8 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) PHINDPDOTBL  An improved AUC budget execution rate that demonstrates better organizational efficiency (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 55.00 70.00 68.00 80.00 Date 31-Dec-2013 31-Dec-2015 30-Sep-2016 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 0.00 1.00 3.00 Date 31-Dec-2013 31-Dec-2015 30-Sep-2015 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 Date 31-Dec-2013 31-Jan-2016 30-Sep-2016 31-Dec-2018 Overall Comments Intermediate Results Indicators 11/30/2016 Page 5 of 8 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  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 31-Dec-2015 30-Jun-2016 31-Dec-2018 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 N Y Y Date 31-Dec-2013 31-Dec-2015 30-Sep-2016 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 31-Dec-2015 30-Jun-2016 31-Dec-2018 PHINDIRITBL  Improve compliance rate for procurement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 80.00 80.00 Date 31-Dec-2013 31-Dec-2015 30-Sep-2016 31-Dec-2018 11/30/2016 Page 6 of 8 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  State of the art AUC ICT data center established (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 31-Dec-2013 31-Jan-2016 30-Sep-2016 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 31-Dec-2015 30-Jun-2016 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 10.99 5.16 68% Key Dates (by loan) 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 11/30/2016 Page 7 of 8 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) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/30/2016 Page 8 of 8 Public Disclosure Copy