AFRICAN DEVELOPMENT FUND

Language: English Original French

BURUNDI

INSTITUTIONAL CAPACITY BUILDING

PROJECT

APPRAISAL REPORT

COUNTRY OPERATIONS DEPARTMENT OCCC CENTRAL REGION May 2004

TABLE OF CONTENTS Page

PROJECT INFORMATION SHEET, CURRENCY EQUIVALENTS, WEIGHTS AND MEASURES, FISCAL YEAR, LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS, SOCIOECONOMIC INDICATORS, PROJECT MATRIX, EXECUTIVE SUMMARY : i-xi I. HISTORY AND ORIGIN OF PROJECT 1

II. THE SECTOR 2

III. THE SUB – SECTOR 3 3.1 Major Ministerial Departments Concerned by the Project 3.2 Constraints of the Sub-sector 3.3 Government Capacity Building Programme 3.4 Donor Interventions

3 9 1011

IV. THE PROJECT 12 4.1 Project Design and Rationale

4.2 Project Areas and Beneficiary Structures 4.3 Strategic Context 4.4 Project Objective 4.5 Project Description 4.6 Impact on Environment 4.7 Project Cost 4.8 Sources of Finance and Expenditure Schedule

12 13131314232324

V. PROJECT IMPLEMENTATION 255.1 Executing Agency 5.2 Institutional Arrangements 5.3 Implementation Schedule 5.4 Procurement Arrangements 5.5 Disbursement Arrangements 5.6 Monitoring and Evaluation 5.7 Financial and Audit Reporting 5.8 Donor Coordination

2526272729293030

VI. PROJECT SUSTAINABILITY AND RISKS 316.1 Recurrent Costs 6.2 Project Impact Sustainability 6.3 Major Risks and Mitigating Measures

VII. PROJECT BENEFITS 7.1 Economic and Social Benefits 7.2 Impacts of Project on Crosscutting Issues

VIII. CONCLUSION AND RECOMMENDATIONS

8.1 Conclusions 8.2 Recommendations

313131

323232

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----------------------------------------------------------------------------------- This report has been prepared by Mr. A. A. BA following an appraisal mission to Burundi from 9 to 20 February 2004. For further information, please contact Messrs. L.B.S. CHAKROUN, Director, OCCC, (Ext 2033); E.C. ANUSIONWU, Manager, Country Operations, OCCC (Ext. 2162), A. BA, Senior Economist (Ext. 2887). .

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AFRICAN DEVELOPMENT FUND

B.P. 323, 1002 Tunis Belvédère,

Tunisia Tel.: (216) 71 333 511, Fax: (216) 71 332 806

PROJECT INFORMATION SHEET

Date: March 2004

The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for projects approved by the Boards of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency of the Borrower. 1. Country : Republic of Burundi 2. Name of Project : Institutional Capacity Building Project 3. Location : Bujumbura 4. Beneficiary : Republic of Burundi 5. Executing Agency : Project Implementation Unit (PIU), at the Ministry of Planning, Development and Reconstruction.

6. Project Description : The main components of the project are:

A. Strengthening of Macroeconomic Management; B. Strengthening of Public Investment

Programming and Management; C. Support for Establishment of Employment

Observatory and National Capacities in On-Job Training

D. Project Management and Monitoring.

7. Project Cost : UA 2.24 million

(i) Foreign Exchange : UA 1.70 million (ii) Local Currency : UA 0.54 million

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8. African Development Fund Grant ADF : UA 2.13 million 9. Other Sources

Government : UA 0.11 million

10. Estimated Approval Date : July 2004 11. Start-up Date and Duration of Project : October 2004 for 3 years 12. Procurement Arrangements Technical Assistance A consulting firm will be appointed on the basis of a shortlist to provide the following services amounting to UA 0.71 million. They are as follows: - Component A: a macroeconomist expert (3 months), a debt management expert (3 months), a computer expert (3 months), Component B: a public investment expert (12 months), a computer expert (3months), two project planning experts (12 and 10 months), Component C: un expert to support the establishment of the ONEF (12 months) and human resource management expert (12 months). Equipment, Supplies and Miscellaneous Expenses

The procurement of computer equipment (hardware and accessories, servers, printers, photocopying machines) amounting to UA 0.32 million will be based on international competitive bidding (ICB). Procurement of means of transport and office furniture amounting to UA 0.11 million will be based on national competitive bidding (NCB).

Procurement of debt management software amounting to UA 0.08 million will be by negotiation with UNCTAD. The use of this procurement method is justified by the fact that the Treasury Directorate currently uses the UNCTAD debt management software which will be updated under the project. Training The same firm appointed to provide technical assistance will also be in charge of the implementation and monitoring of the training programme. The choice of a single consulting firm responds to the need for continuity and consistency in the implementation of the project. Logistical services for the organization of local training amounting to UA 0.03 million will be procured by an agreement signed directly with the Training and Advanced Training Centre (CPF). Resources earmarked for training abroad will cover the costs of air tickets, per diems, and payment of training centres to be selected on the basis of shortlists. The consulting firm will put in place a training monitoring-evaluation system to assess its impact on the performance of the beneficiaries.

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Operation

Other expenses for the operation of the project (computer maintenance, staff benefits, insurance, maintenance, communication and overheads) totalling UA 0.10 million will be procured through local shopping. The value of each contract is below UA 10,000. Auditing Annual auditing of the project accounts, as well as the putting in place of the accounting system and training of the accountant estimated at UA 0.10 million will be by competition based on a shortlist of auditing firms. The selection process will be based on the comparability of technical and price proposals.

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CURRENCY EQUIVALENTS

(February 2004)

UA 1 = US$ 1.48674 UA 1 = BUF 1570.00 US$ 1 = BUF 1056.00

WEIGHTS AND MEASURES

Metric System

FISCAL YEAR

1st January– 31st December

LIST OF TABLES Tables Pages 3.1 Breakdown of Workforce by Structure and by Category 9 4.1 Cost Estimates by Component 24 4.2 Cost Estimates by Category of Expenditure 24 4.3 Sources of Finance 25 4.4 Schedule of Expenditure by Component 25 4.5 Schedule of Expenditure by Source of Finance 25 5.1 Estimated Project Implementation Schedule 27 5.2 Procurement of Goods and Services 29

LIST OF ANNEXES Annexes Number of Pages Annex 1 Administrative Map of Burundi 1 Annex 2 Organization Chart of Project Implementation Structure 1 Annex 3 Schedule of Project Implementation 1 Annex 4 Detailed Project Cost Estimates 5 Annex 5 Terms of Reference of Experts 7

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ACRONYMS AND ABBREVIATIONS

ADB African Development Bank ADF African Development Fund BUF Burundian Franc

DE Employment Directorate DGD General Directorate of Public Expenditure DP Planning Directorate DPR Programming Directorate

DRC Democratic Republic of Congo DT Treasury Directorate

EIB Extraordinary Investment Budget EU European Union

FDD Democracy Defence Forces FNL National Liberation Forces GDP Gross Domestic Product HIPC Heavily Indebted Poor Country IMF International Monetary Fund

ES Economist-Statistician ISTEEBU Institute of Statistics and Economic Studies of Burundi

CSO Chief Statistical Officer MF Ministry of Finance MINAGRIE Ministry of Agriculture and Animal Husbandry MPDR Ministry of Planning, Development and Reconstruction MT Technical Ministry MTPE Ministry of Public Works and Infrastructure

MTSS Ministry of Labour and Social Security NAS National Accounting System ONEF National Employment and Training Observatory PDP Public Expenditure Programme PIP Public Investment Programme PIPC Interim Post –conflict Programme PNRCBG National Programme Capacity Building for Good Governance

PRGF Poverty Reduction and Growth Facility SDR Special Drawing Rights

SEP Social Emergency Programme TCP Technical Cooperation Programme TIP Three-year Investment Programme

UA Unit of Account of the ADB Group UNDP United Nations Development Programme VTC Vocational Training Centre

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COMPARATIVE SOCIOECONOMIC INDICATORS OF BURUNDI

Country: Burundi Name of Project: Institutional Capacity Building Project Date of Update: May 2004 Design Team: A. BA

Hierarchy of Objectives

Objectively Verifiable Indicators

Means of Verification

Key Assumptions

Sector Goal of Project

Contribute to building capacities in the formulation, implementation and monitoring of economic policies

1.1 The PRSP is implemented satisfactorily and has become a tool for programming and monitoring poverty reduction measures by end 2006;

1.2 Macroeconomic forecast tools are strengthened (including the macroeconomic

framework model) and are effectively used by the DP for economic planning needs as from 2005

1.3 An adequate and operational public investment programming is put in place (system

of evaluation, project selection criteria, arbitration procedures) by end 2006 1.4 A pertinent budget programming methodology as well as a system of monitoring-

evaluation of public investments is put in place by end 2005; 1.5 The PIP implementation rate improves steadily from end 2005 onwards; 1.6 A project file is opened and effectively used by the DPR and the Sectoral Planning

Units of MINAGRIE and MPTE by end 2005.

1.1 Project activity reports 1.2 Annual reports on the consolidated

capital budgets of the DGP 1.3 Project activity reports 1.4 Annual reports on the execution of

consolidated capital budgets. 1.5 National accounts statistics 1.6 Project activity reports

Specific Project Objectives 1. Develop and consolidate skills in

macroeconomic planning, 2. Strengthen public investment

programming 3. Support the system of statistical

production 4. Improve debt management

1.1 Executive and support staff have received training in data processing and have

mastered the key concepts of basic software (World, Excel,) in 2005; 1.2 Databases on the monitoring-evaluation of PIP projects and on the debt are

available and operational by 2005; 1.3 The PIP design is based on the Government’s macroeconomic and sectoral

priorities from 2006 onwards,

1.4 The macroeconomic accounts and poverty monitoring indicators are produced regularly from end 2005 onwards;

1.5 The debt management is updated and executives are trained in the new version in 2005;

1.1 Project activity reports; 1.2 MPDR activity reports; 1.3 MPDR activity reports 1.4 National statistics 1.5 Project activity reports 1.6 MPDR activity reports

Political will of Government to pursue reforms Socio-political environment is stable Staff mobility is under control

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Country: Burundi Name of Project: Institutional Capacity Building Project Date of Update: May 2004 Design Team: A. BA, Economist, OCCC

Hierarchy of Objectives

Objectively Verifiable Indicators

Means of Verification

Key Assumptions

Output 1.1. The management of public

investments is satisfactory 1.2. Work procedures are defined

to ensure consistency between PIP programming and the debt

1.3. Better monitoring of debt is

assured 1.4. The statistical apparatus is

more efficient 1.5. Better monitoring of poverty

is assured 1.6. Adequate computer

equipment is procured by the structures concerned by the project

1.1 The PIP implementation rate improves from 2006

onwards; 1.2 The PIP design is based on the Government’s

macroeconomic and sectoral priorities from 2006 onwards;

1.3 Coherent databases on the debt are put in place by

end 2005, 1.4 Economic and social indicators are regularly

available from end 2005 onwards 1.5 Poverty profile regularly updated from 2005 1.6 Computer equipment and means of transportation

procured in 2005

1.1 Annual reports of Ministry of Planning 1.2 Annual reports of Ministry of Planning 1.3 Statistics of Treasury Directorate 1.4 STEEBU Publications 1.5 ISTEEBU Publications 1.6 Project activity reports

The national counterpart fund is released for the project.

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Country: Burundi Name of Project: Institutional Capacity Building Project Date of Update: May 2004 Design Team: A. BA, Economist, OCCC

Hierarchy of Objectives Objectively Verifiable Indicators

Budgetary Resources (in UA million)

Means of Verification Key Assumptions and Risks

ADF

0.71

0.71

0.51

0.10

0.10

GVT

0.11

Total

0.71

0.71

0.51

0.10

0.21

1.1 Status of disbursements and audit reports 1.2 Quarterly project status reports and

supervision reports

1.1 The national counterpart fund is released for the

project 1.2 Technical assistants are recruited on schedule

Key Activities a) Recruitment of

consultants b) Implementation of

training c) Procurement of

equipment d) Audit e) Operation

Total

2.13

0.11

2.24

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EXECUTIVE SUMMARY 1. Beneficiary : Republic of Burundi 2. Executing Agency : PIU at the Ministry of Planning 3. Sector : Multisector 4. History of Project

Burundi has formulated a three-year programme (2004-2006) backed by a poverty reduction and growth facility (PRGF) approved by the IMF Board in January 2004. The Government also finalized the I-PRSP in March 2002, which constitutes the basis of the Government’s emergency programme covering the following areas: (i) support to the budget and balance of payments; (ii) national capacity building for good governance (PNRCBG); (iii) resettlement of war victims; and (iv) disarmament, demobilization, reintegration and reform of the defence and security forces. The Government is aware of the fact that achieving the emergency programme necessarily requires the reconstruction and modernization of the administration, which has been hard-hit by the socio-political crisis prevailing since October 1993. It is for this reason that it undertook to implement a capacity building programme for coordinated training and procurement of equipment for institutions in charge of economic management and the civil society. It is against this background that the Government submitted a request to the Bank in April 2003, for support in the financing of this programme. 5. Purpose of Grant

The ADF contribution amounting to UA 2.13 million that is, 95 % of the total project

cost, excluding taxes and customs duties, in the form of a grant, will be used to finance the foreign exchange costs estimated at UA 1.70 millions and 79 % of the local currency costs amounting to UA 0.54 million. 6. Project Objectives The sector goal of the project is to contribute to building capacities to formulate, implement and monitor economic policies. Specifically, the project aims to develop and consolidate capacities in macroeconomic planning, public investment programming and strengthening of the statistical system by focusing on the development of human resources, improvement of managerial procedures and modernization of working tools. 7. Project Description

The components of the project are:

A Strengthening of economic planning and debt management;

B. Strengthening of the programming and management of public investments;

C. Support for the putting in place of an employment observatory and for

building national capacities in on-the-job training; and D. Project management and monitoring.

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8. Project Cost

The cost of the project, net of taxes and customs duties is estimated at UA 2.24

million comprising UA 1.70 million in foreign currency and UA 0.54 million in local currency. 9. Sources of Finance

The project will be financed by the ADF to the tune of UA 2.13 million,

representing 95% of the total project cost, net of taxes and customs duties. The Burundian Government will contribute UA 0.11 million, that is 5 % of the project cost. 10. Project Implementation The project activities will cover a three-year period, starting from the entry into force of the grant scheduled for October 2004. The project executing agency will be the Project Implementation Unit (PIU) to be created at the Ministry of Planning. Under the responsibility of a Coordinator, the PIU will oversee the monitoring of project activities as well as the strengthening of the coordination with the activities of other donors operating in the area of capacity building. A Steering Committee made up of directorates concerned by the project will also be put in place. It will play the role of a driving, guiding and validation and supervisory structure of the project activities. 11. Conclusions and Recommendations 11.1 Conclusions Since October 1993, Burundi has been facing a deep socio-political crisis that has had severe consequences on the economic and social fabric of the country. The country’s institutional capacities have been eroded over the years translating into the disorganization of the administration, loss of motivation of Government employees as the dilapidation and obsolescence of the working tools. This situation has been aggravated by the lack of training and retraining programmes for executives. It is to curb the cumulative effects of the deterioration of the situation and disorganization of the country’s administrative apparatus that the Government intends to implement the capacity building programme to foster economic growth. The present project is set within this framework and its implementation will contribute to achieving this goal. The project is also in response to the Government’s efforts in making all the debt repayments due for 2003 amounting to US$ 6.46 million. It also settled 20% of the stock of arrears, that is US$ 6.24 million, as well as payments due to February and April 2004 amounting to US$ 3.29 million. The Bank’s strategy is to find a solution to the problem of arrears that will make for a full resumption of its cooperation with Burundi and facilitate its access to the HIPC initiative. The present project is set within this framework and constitutes an instrument for dialogue with the Government. 11.2 Recommendations

It is recommended that the Government of the Republic of Burundi be awarded an ADF grant not exceeding UA 2.13 million for the financing of the present project.

I. HISTORY AND ORIGIN OF PROJECT 1.1 The recurrent political crises that have beset Burundi in recent times have had devastating effects on the economic and social situation of the country characterized by a profound degradation of the country’s institutional capacities resulting from the scale of losses in human lives and physical damage. The massive destruction of the means of production as well as the persistent climate of insecurity over a decade have jeopardized the country’s economic performance. Furthermore, these crises have aggravated the vulnerability of the economy and the living conditions of the people, translating into accelerated poverty and marginalization of the most disadvantaged social groups. Under the inter-Burundian Arusha talks, the various political stakeholders agreed that the crisis facing the country has mainly resulted from deficiencies in governance, particularly, in the political and economic spheres. It is for this reason that the transitional Government has set as a priority the need to rebuild institutional capacities whose current weakness constitutes a major obstacle to the smooth management of the country’s economic development. 1.2 Following the progress made in terms of political dialogue, the Burundian Government formulated an interim post-conflict programme over the 2002-2003 period, supported by the IMF and an economic recovery credit granted by the World Bank. The implementation of this programme was deemed to be satisfactory by the Bretton Woods institutions despite the multiple constraints on the administration. Furthermore, the Government formulated an Interim Poverty Reduction Strategy Paper (I-PRSP) that was approved by the Cabinet in March 2002. The main thrusts of the I-PRSP are as follows: (i) rehabilitation and strengthening of the quality of basic social services (education and health); (ii) restoration of the stability of the macroeconomic framework to set the conditions for growth in favour of the poor; (iii) promotion of the integration of victims of the conflict and disadvantaged groups in the economy; (iv) strengthening of the fight against HIV/AIDS; (v) promotion of the role of women in development; and (v) strengthening of the peace process, security and good governance. 1.3 Within the framework of its consultations with the development partners, the Government formulated a national capacity building programme for good governance (PNRCBG) that links the problem of national capacity building to that of political and economic governance. The PNRCBG, which is in line with the orientations of the I-PRSP, aims at creating an institutional and regulatory environment favourable for the promotion of social dialogue and transparency in the management of public resources with a view to improving the living conditions of the people in a sustainable way. It is against this background that the Government submitted a request in April 2003 to the Bank for its support in the financing of this programme. On the basis of the strategy defined in the 2003-2004 Dialogue Paper which consists, inter alia, in providing institutional support to build macroeconomic management capacities particularly with regard to the debt, the Bank responded favourably to the Government’s request. 1.4 The present project was preceded by a preparation mission in June 2003 and an appraisal mission in February 2004 that helped collect recent economic and financial data on the country and to review the status of institutional capacities with the authorities as well as the interventions of development partners in this area.

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Performance of Similar Projects 1.5 The Bank has not yet financed institutional support projects in Burundi. However, it has supported similar operations in the DRC and in Rwanda, which are post-conflict countries. In the DRC, the two institutional support projects approved in 2001 and 2002 are ongoing, and it is not yet possible to draw objective lessons from this experience. In Rwanda, two projects were also approved in 1997 and 2001 respectively. The first project, which was closed in June 2002, aimed at building economic management capacities and the rationalization of the programming of the PIP highlighting the training of management level personnel and the provision of high-level technical assistance. Although the project completion report has not yet been formulated, the various project supervision missions indicate that the major problems encountered in implementation were related to: (i) weak capacities translating into significant slippages, notably in the implementation of the training component; (ii) lack of an appropriate accounting system right from the start of the project; and (iii) lack of adequate training structures at the country level resulting in the systematic use of foreign training centres and thereby affecting the duration of the projects. 1.6 On the basis of this experience, the present project embodies in its design, elements aimed at easing these various constraints. Thus: (i) the Project Implementation Unit will have adequate human resources and the implementation period of the project will be three years in order to curb the successive extension of the closing date of the project; (ii) putting in place of an accounting system by an auditing firm at the project start-up to facilitate the financial monitoring of the project; and (iii) strengthening of a local training structure to facilitate the implementation of the training programme earmarked for the project. This support will also contribute to sustaining national capacities in the area of training and supporting the public service reform which includes a sizeable component on further training for the staff of the administration. II. THE SECTOR Public Administration 2.1 The public sector of Burundi is one of the most important sectors of the country’s economy, with a 21.5% share of the GDP over the last five years. However, the repeated cycle of violence has had a devastating effect on institutional capacities and the Administration’s human resources. The crisis has caused serious losses in experienced and competent management level staff as well as material and archiving capacities. The country’s institutional memory has been significantly affected by the virtual disorganization of the administration. The precariousness of working conditions, characterized by the low level of wages, lack of equipment in ministerial departments as well as the absence of a system of ongoing education and retraining, weighs heavily on the motivation of those who have stayed behind. Among these, the most qualified are seeking greener pastures. In order to overcome the deficit in personnel, young graduates are being recruited into the administration without an appropriate system of supervision and motivation. 2.2 The central administration, which comprises ministries and public administrative establishments, are beset by various factors of dysfunction that hamper their performance in economic management. These factors include: (i) the low level of qualification in the Public Service that raises the problem of the effectiveness of the administration; (ii) a clear

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imbalance in the sectoral distribution of manpower: out of 39,713 employees 24,823, that is nearly 62%, are teachers; (iii) a high mobility of the personnel thus undercutting the sustainability and consolidation of experience acquired in the ministerial departments; (iv) a lack of a clear definition of functions and tasks in the ministerial departments. Overlaps in the duties assigned to economic departments are at the root of the dispersal of efforts and redundancies. Similarly, the weak functional linkages between the administrative structures as well as the virtual non-existence of working procedures are also factors that hamper the effectiveness of the administration. 2.3 To overcome these constraints and enhance coordination between the various administrative structures, in 2002, under the 2002-2003 programme concluded with the Bretton Woods institutions, the Government undertook to reform the public service with the support of the World Bank and other donors. The objective of the reform is to ensure greater control over the workforce as well as put in place a system of institutional and managerial reorganization of human resources requiring the definition of a new status for public servants and a public service computerization master plan. To this end, the Government initiated a public service census in June 2003 with the support of the European Union and the development of a system of wage management and rationalization. III. THE SUB-SECTOR 3.1 Major Ministerial Departments Concerned by the Project 3.1.1 At the organizational level, the economic management, mobilization of external resources and the coordination of aid are jointly catered for by the Ministry of Finance and the Ministry of Planning, Development and Reconstruction (MPDR). 3.1.2 The Ministry of Finance is responsible for formulating and implementing the Government’s financial policy as well as mobilizing internal and external resources. In this regard, it oversees the preparation of the general government budget, in collaboration with the Ministry of Planning. 3.1.3 The Ministry of Planning, Development and Reconstruction (MPDR) is responsible for the formulation, programming, monitoring and evaluation of public investments as well as the formulation of the country’s economic and social development plans. The Ministry of Planning also participates in the promotion of the private sector and establishes macroeconomic forecasts. The coordination function behoves this ministry, notably the programming, monitoring, evaluation, negotiation of development programmes and projects as well as the coordination of external support. In its investment programming activities, in particular, it works in close collaboration with the planning units of the sectoral technical ministries, notably those of agriculture and animal husbandry, public works and infrastructure, health and education. 3.1.4 The Ministry of Agriculture and Animal Husbandry is responsible for implementing the Government’s policy on the development of agriculture, livestock rearing and fisheries. It designs, in conjunction with the Ministry of Economic Planning, public investment programmes, monitors their implementation and assesses the implementation of these programmes.

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3.1.5 The Ministry of Public Works and Infrastructure (MTPE) is responsible, inter alia, for: (i) formulating and implementing the Government’s policy on urbanization, public buildings, infrastructure, housing and roads, (ii) developing the road network to help open up the country; and (iii) coordinating all the activities undertaken by other stakeholders in the road sector and infrastructure in the urban centres. 3.1.6 The Ministry of Labour and Social Security (MTSS) is responsible, inter alia, for formulating the Government’s labour and social security policy, developing strategies aimed at promoting employment and human resource development for sectors governed by the Labour Code and overseeing the application of the labour law and social security. 3.1.7 The departments and organizations concerned by the project fall under the umbrella of the major ministries listed above. These are: a) The Planning Directorate (DP) 3.1.8 The activities of this department are governed by Presidential Order No. 100/060 of 26 August 1998 on the organization of the Ministry of Planning. The main objectives of the DP are to: (i) define the medium- and long-term development strategies; (ii) prepare the five-year economic and social development plan; (iii) prepare the macroeconomic and long-term planning; (iv) formulate the planning of human resources and the population; (v) undertake regional planning and planning of technical assistance; (vi) make forecasts and undertake the collection of data on the medium- and long-term trend of the country’s economy and international economic relations. To carry out its missions, the Planning Directorate is organized into three units: the Macroeconomic Planning Unit, Human Resources Planning Unit and the Technical Assistance Management Unit. The major constraints of the directorate relate to the insufficient human resources and inadequate computer equipment. The activities of the Planning Unit are catered for by five (5) senior officials 4 of whom are holders of a Degree in Economics and 1 a Degree in Public Administration and three (3) support staff. There is also the problem of the retention of staff; among the senior executive staff only two have more than 5 years of experience in the Department. The average length of service of the staff is lower than two years. In such a context, existing analytical tools such as the macroeconomic model are difficult to implement. The Planning Directorate that is also responsible for publications such as the Economic Letter and the Economic Outlook Review no longer produces them. In view of the workload and the technical standard required to fulfill its mission, it is evident that the Planning Directorate needs adequate support in human resources (training and strengthening of the workforce). The planning function is also hampered by the problem of availability of reliable and regular data. b) The Treasury Directorate (DT) 3.1.9 This directorate is placed under the authority of the General Directorate of Expenditures of the Ministry of Finance (MF). The activities of the Treasury Directorate are governed by Order No. 100/158 of 27 December 1999 on the organization of the Ministry of Finance. The tasks of the Directorate are as follows: (i) ensure internal and external financial balance of the national economy; (ii) determine and manage the policy and strategy on the internal banking and non-banking financing of the Government general budget; (iii) propose strategies for the external financing of the Government general budget; (iv) monitor the use of all the drawings on loans and collections from the debt onlent to public enterprises and establishments; (v)

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manage credit agreements; and (vi) oversee the work of the External Debt Monitoring Commission. To fulfill its missions, the Treasury Directorate is subdivided into two units: the External Debt Unit (SDE) and the Internal Debt Unit (SDI). The SDE is organized into three units: a unit for recovering the debt onlent to public enterprises, a unit responsible for monitoring payments and a unit in charge of drawings (agreements). 3.1.10 The Treasury Department is facing problems relating to human resources, equipment and coordination. It has a staff of 2 senior managers (the Director and the Head of the SDE), 7 middle-managers and 3 support staff. The External Debt Department has a workforce of 4 persons (including the Head of the Department who has a degree in economics) and the 3 other staff members have secondary education qualifications. The Internal Debt Department also has 4 middle managers (including the Head). Three of the seven staff members in the two departments have two-years’ working experience. Overall, the employees have no special qualification in debt management and analysis. Moreover, the Treasury Directorate does not have a computer expert who can undertake the administration and monitoring of the database on the debt. The need for a rigorous management of the debt to provide a lasting solution to the country’s indebtedness, means that Directorate must have highly qualified human resources and adequate computer equipment (hardware and software). The low debt management capacities as well as the absence of effective coordination, notably between the Treasury Directorate and the departments in charge of macroeconomic framework, payment order and programming of expenditures constitute an obstacle for the appropriate monitoring of the debt. This has resulted in enormous difficulties in controlling the country’s debt level. c) The Institute of Statistics and Economic Studies of Burundi (ISTEEBU) 3.1.11 The ISTEEBU is a government “custom-made” administration created by Order No. 100/033 of 23/02/1990 with a legal status, assets and autonomous management. It is placed under the direct authority of the Ministry of Planning. The ISTEEBU aims at: (i) promoting statistical activities in Burundi; (ii) conducting socio-economic studies based on the country’s statistics; (iii) organizing training sessions on statistics whenever the need arises and within the confines of available resources; (iv) coordinating all the statistical units existing within the various governmental institutions; and (v) dealing with any technical issue with foreign statistical units as well as with any other institutions involved in statistical activities. To accomplish its missions, the Management of the Institute is subdivided into four units: the administrative and finance unit, responsible for all aspects relating to personnel, finance and logistics; the statistical processing unit, responsible for the collection, application and preparation of statistical data on surveys conducted in the country; the economic and social studies unit that caters for the formulation of socio-economic studies and analysis of information from various national or other institutions; and the statistical information unit, responsible for disseminating publications, documentation and archives. 3.1.12 The main constraints of ISTEEBU relate to insufficient human, material and financial resources as well as the inappropriateness of the institutional framework. The Institute is confronted with a serious problem of insufficient qualified senior managers. The workforce of the ISTEEBU of 119 employees comprises 2 highly qualified staff including 1 CSO; 12 senior managers including 3 statistical officers, with the others having various types of profiles: 29 assisting staff including 1 assistant statistical officer, 21 graduates from the University of Burundi, (short cycle of the statistics section) and 76 executing agents from

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various backgrounds. The highest proportion of the human resources comprises junior staff responsible for collecting field data, printing and documentation officers and secretaries. The Institute does not have a computer expert. The main problem facing the Institute is that there is no critical mass of qualified human resources, skilled in methods and procedures needed to carry out the various tasks relating to the production and dissemination of statistics. In terms of material resources, the work facilities of the Institute are inadequate, notably in terms of telecommunications, computer and transport facilities. The financial resources allocated by the Government to the Institute are essentially devoted to operating costs and staff expenses. Procurement of equipment and the conducting of statistical surveys are exclusively funded from external sources. However, it is noteworthy that, since 2000, the Government has been allocating additional resources through the extraordinary capital investment budget for conducting surveys (the survey on enterprises in 2000 and identification of farms in 2003 and 2004). 3.1.13 At the institutional level, the statistical system is fraught with: (i) absence of a legal framework governing the statistical work; (ii) lack of coordination of national statistical activities, characterized by lapses and weaknesses in the central organ and a dispersal of the national statistical apparatus in the various structures which also have a weak capacity; (iii) absence of the status of statistician with appropriate incentives; and (iv) lack of coordination of donors. In view of all these difficulties, the production and dissemination of statistics have been held up. d) The Programming Directorate (DPR) 3.1.14 The activities of the DPR are also governed by Presidential Order No. 100/060 of 26 August 1998 on the organization of the Ministry of Planning. The main functions of the DPR are to: (i) monitor and follow-up on a permanent basis the sectoral programmes and projects included in the development plan; (ii) formulate and conduct studies and works for the implementation of projects under the development plan; (iii) monitor and evaluate projects in close collaboration with the technical ministries; (iv) oversee the preparation and monitoring of public expenditure programmes (PEP), public investment plan (PIP), extraordinary capital investment budget (EIB) and of the technical cooperation programme (TCP); and (v) participate, in collaboration with the other units concerned, in the promotion of the private sector. To carry out its functions, the DPR is subdivided into four sectoral units: the rural development unit, the physical infrastructure unit, the administrative and social infrastructure unit and the trade, banks, tourism and handicraft unit. 3.1.15 The Programming Directorate is faced with problems of lack of human resources, adequate computer equipment and working tools as well as coordination with sectoral ministries. The total workforce of the Directorate is thirteen (13) senior managers (including the Director) comprising 2 agronomists, 5 civil engineers and 6 Bachelor Degree economists, two (2) middle managers and two (2) support staff. Most of the staff have a working experience of less than 4 years. The weak human resources as well as lack of a multidisciplinary team seriously affects public investment programming process, which comprise four instruments, namely: the public expenditure programme, the public investment programme, the technical cooperation programme and the unified budget, put in place in 1989 to ensure the transparency and rationality in resource allocation. The three programmes (PDP, PIP and TCP) have been established on a three-year rolling basis and updated at the end of each year for a new programming. However, in view of the crisis and the withdrawal of donors, this mechanism is facing difficulties: (i) the PDPs and the TCPs have been

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gradually abandoned, after being formulated for the key ministries (agriculture, public works, health and education); (ii) the PIP continues to be produced annually with shortcomings and imperfections, arising mainly from problems of coordination and the weak capacities of the projects. At the level of the coordination of programming, the Programming Directorate is expected to work closely with the planning units of the technical ministries that are the focal points of the Ministry of Planning at the sectoral level. The weak system of programming and execution of public investments has resulted in the isolation of the sectoral planning units that seriously diminish the quality of the PIPs. It is essential to eliminate these weaknesses by boosting the functional relationships between the Ministry of Planning and the sectoral departments particularly those of the Ministry of Agriculture and Ministry of Public Works in view of their importance in the PIP (about 35%) which should grow in the current context of rehabilitation and recovery of the country’s economy.

e) The Planning, Studies Coordination, Programmes and Budget Units of the MINAGRIE and MTPE

3.1.16 These Units are the corresponding structures and focal points of the Ministry of Planning at the Ministry of Agriculture and the Ministry of Public Works in the planning and programming process. They are attached to the Office of the Minister and their activities are coordinated by an Adviser to the Minister specifically responsible for the said units. The activities of these units are organized by Presidential Order No. 100/128 of 27 September 1993 fixing the general rules of organization and composition of the ministerial office. Thus, the main missions of the planning unit are to: (i) design, develop and monitor the application of the sectoral policy of the Ministry; (ii) plan, programme, coordinate and organize the activities of departments depending on the Ministry; (iii) formulate and monitor the public investment programmes (PIP), public expenditures (PDP) and technical cooperation (TCP); (iv) formulate and monitor the budgets; (v) establish linkages between the Ministry and national and international organizations in collaboration with the institutions concerned; and (vi) formulate the terms of reference for project studies and coordinate the operations of donors in the sector. These units have operated relatively well since 1989, with the setting up of a new system of economic programming (PDP, PIP, TCP). However, since 1993, they have been facing operational difficulties, essentially due to the crisis and the halting of donor interventions. The Planning Unit of the Ministry of Agriculture and Animal Husbandry is staffed by 7 senior managers and 4 support staff and that of the Ministry of Public Works and Infrastructure is staffed by 8 senior managers and 2 support staff. No training has been provided and the equipment has not been renewed since the crisis. In short, the programming exercise needs to be resumed. f) The Employment Directorate (DE) 3.1.17 This Directorate comes under the umbrella of the Ministry of Labour and Social Security (MTSS) whose mission is to design and implement the Government’s policy on labour and social security. It is placed under the supervision of the General Directorate of Labour and Social Security, with the following main tasks: (i) formulate and implement measures to promote and stimulate employment creation; (ii) collect, analyze and publish information concerning employment in the formal and informal sector and set up a statistical database on the working community and natural human resources; and (iii) analyze, assess and classify employment in the parapublic and private sectors ensuring their harmonization with international classifications. The role of the DE is of a crucial importance in the implementation of the Government’s emergency programme. Indeed, with the crisis situation

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facing the country, the deterioration of the labour market is increasing the number of persons in search of vocational integration and reintegration and poses the problem of unemployment among the youth, integration of refugees, and demobilized persons in the productive sector. This explains the pride of place given to employment in the Government’s capacity building programme that seeks to enhance social justice and protect human rights. The Government’s goal is to set up an Employment and Training Observatory to strengthen social dialogue, formulate a national employment policy and collect statistics on the informal sector. 3.1.18 Following the example of other ministerial departments, the Directorate of Employment is beset by institutional constraints related to weak human resources and lack of adequate computer and logistical resources. The Directorate of Employment has only nine (9) staff members four (4) of whom do not have the required training or experience for the collection and analysis of statistical data on employment much needed for the national Employment and Training Observatory and the definition of a national employment policy. Putting in place these various working tools, the promotion of social dialogue (consultation between Government, employers and workers) as well as the effective monitoring of compliance with labour regulations and rights presuppose that the resources of the Employment Directorate have been strengthened both in terms of human resources and material facilities. g) The Advanced Training and Training Centre (CPF) 3.1.19 Under the supervision of the Ministry of Public Service, the CPF is a public training establishment that was created by Order No. 100/148 of 8 November 1979. Its role is to provide on-the-job training and advanced training for officers in charge of the administration and management of public and parapublic sectors. To this end, the Centre: (i) organizes activities aimed at the vocational promotion of staff from the public administration and parapublic sector; (ii) participates in human resource need analysis for the public administration; (iii) studies and promotes need assessment techniques and methods in planning and on-the-job training and advanced training activities; (iv) organizes and disseminates, through various publications, documentation on administration and management; (vi) advises parapublic and private administrations and organizations in the areas of its competency; and (vii) provides training courses for trainers in on-the-job training and further training. 3.1.20 However, the Training and Advanced Training Centre is facing enormous difficulties in meeting the growing demand in view of the lack of qualified human resources and teaching and logistical equipment. The Centre has 11 classrooms, a 300-seat lecture hall and a computer room. In terms of human resources, the Centre has only 8 trainers who do not have the opportunity to undergo regular further training. To remedy this difficulty, the CPF plans to put in place a research and experience exchange project with training through the Internet in a bid to acquire a virtual library and organize training sessions in information and communication technology for public servants.

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3.2 Constraints of the Sub-sector 3.2.1 To sum up, the main constraints facing the administration are : (i) weak human resources resulting from a shortage of manpower with a critical mass of skills required to master economic management tools; (ii) a weak institutional framework stemming from the lack of manuals of procedures and a clear definition of the functions of the administrative structures; and (iii) problems related to inadequate computer and logistical equipment for the administration 3.2.2 Human resource problems relate to the low qualification of the staff, particularly as a result of the crisis that led to the departure of a large number of qualified personnel and discontinuity in training activities for those who stayed behind. Table 3.1 confirms the weak nature of human resources, with senior managers representing nearly 25% of the total manpower. This situation calls for special effort in upgrading through training as well as strengthening the workforce in order to improve the performance of administrative structures.

Table 3.1: Breakdown of Workforce by Structure and by Category

Department Senior Middle Support Total Managers Managers Staff 1. Treasury Directorate 2 7 3 12 2. Planning Directorate 5 0 3 8 3. Programming Directorate 13 2 2 17 4. Ministry of Agriculture Unit 7 3 4 14 5. Ministry of Public Works Unit 8 6 2 16 6. ISTEEBU 15 66 38 119 7. Employment Directorate 4 9 4 17 8. Vocational Training Centre 10 7 33 50 Total 64 100 89 253

% 25.30 39.53 35.18 100.00 Number of Women 57

3.2.3 Institutional problems essentially concern: (i) difficulties in re-establishing the key functions of the institutional system of economic management; (ii) a break in the coordination of activities between the various administrations involved in the management of the country’s economy; and (iii) weaknesses in the national statistical system, that hamper the design, programming, implementation, monitoring and assessment of economic policies. 3.2.4 Technical problems are related to the lack of renewal of equipment, resulting in the latter becoming obsolete or breaking down, particularly computer hardware which is clearly below the minimum required for smooth administration. The information, documentation and communication systems have been disconnected, or are inefficient. The production and dissemination of statistical data are inadequate. 3.2.5 Thus, the major constraints that the project will have to contribute to addressing are the following:

(i.) Weak administrative capacities for steering the economy and the

transparent management of public resources;

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(ii.) Weak functional linkages between the Ministry of Finance, the Ministry of Planning and the sectoral ministries translating into difficulties in the consistent and coordinated implementation of macroeconomic and sectoral strategies;

(iii.) Poor mastery of macroeconomic management tools (economic outlook,

trend charts, tools for macroeconomic framework and financial programming, reliable national accounts, etc.);

(iv.) Absence of mechanisms, manuals of procedures and methods of

review, assessment and selection of projects, which is at the root of the programming difficulties and justification of public investments;

(v.) The dilapidated state of computer and logistical equipment including

means of transport is a reflection of the ineffectiveness of the administration in managing and monitoring projects as well as economic and social indicators.

3.3 Government Capacity Building Programme 3.3.1 At the Geneva Round Table in November 2002, Burundi’s development partners noted that the weak capacities of the country constitute a major obstacle to peace, reconciliation and the smooth management of the socio-economic development of the country. The transitional Government therefore organized three thematic consultations on capacity building, good governance and food security. At the end of these consultations, it formulated the national capacity building programme for good governance (PNRCBG) aimed at improving the living conditions of the people through a fair and equitable strategy for allocating and managing resources. 3.3.2 The capacity building programme comprises three components:

(i.) Democratic good governance aimed at strengthening the bases of democracy by supporting the peace and security process, parliamentary institutions, electoral systems and decentralization;

(ii.) Administrative good governance is geared towards the putting in place an

effective and responsible administration by refocusing the Government’s functions, reform of public service, development of human resources, promotion of social dialogue and transparency in the management of public resources;

(iii.) Economic good governance aims at providing the country terms of

reference for strategic planning by building institutional capacities to incorporate the millennium development goals in the strategic planning; promoting capacities to formulate macroeconomic and sectoral policies, improving macroeconomic and programming tools and training personnel for their use. In order to promote the private sector, this component of the programme highlights trade and industry, employment promotion and the development of information and communication technologies.

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3.3.3 In January 2004, at the forum of partners of Burundi held in Brussels, the Government presented the priority areas of the capacity building programme and requested the support of donors. 3.4 Donor Interventions 3.4.1 The World Bank, IMF, European Union, French Cooperation Agency, Belgian Cooperation Agency and the UNDP are the main development partners operating in the area of capacity building in Burundi. 3.4.2 Over the 2002-2003 period, the World Bank and the IMF supported reforms undertaken by the Government within the framework of the interim post-conflict programme with a view to reinforcing the macroeconomic framework and the effectiveness of public expenditure. 3.4.3 Over the same period, the World Bank financed an institutional capacity building operation with a grant by providing technical assistance in economic management to the Ministry of Planning, Ministry of Finance and the Central Bank. In January 2004, it also approved an economic management support project (PAGE) in the amount of US$ 26 million with the following major components: (i) strengthening the analysis and collection of economic data to ensure coherent decision-making; (ii) improvement of transparency in financial and administrative management; (iii) reform of the public procurement system and restructuring of public enterprises; and (iv) formulation of the justice sector reform strategy. Regarding the component relating to financial and administrative management, the project highlights support to economic forecasting, updating of recent projections and expenditures, statistical production through the drafting of the statistical law and application instruments as well as the dissemination of economic and statistical information among public and private decision-makers. 3.4.4 The European Union supported the first phase of the public service survey in June 2003 aimed at streamlining wage expenditures. This entails a fund for technical assistance for the monitoring of budgetary support that it plans to provide in 2004-2005 in Burundi. It also plans to provide technical assistance for supporting State withdrawal from the main agricultural sub-sectors and the health sector rehabilitation programme. The UNDP financed a capacity building project at the Ministry of Planning in 1998-2000 to support macroeconomic management, notably by providing technical assistance for economic forecasting. The UNDP also provides support for the legal and regulatory framework for statistical coordination (basic legal instruments and statistical master plan). It has undertaken a situation analysis of the statistical system of Burundi backed by a plan of action for strengthening capacities in this area. To this end, it plans to support the production of statistics for the monitoring of the impact of economic policies on poverty and on the millennium development goals (MDG). Furthermore, the UNDP is backing the Government’s efforts to support the formulation of a national good governance strengthening programme. 3.4.5 Belgium has set aside an ad hoc support fund for the central administration for the purpose of procuring office equipment and strengthening good governance. Belgium also provides assistance for the strengthening of justice and institutional support to the Office of the Auditor-General, as well as the training of junior staff in the justice department. In strengthening its cooperation with Burundi from 1999, France focused on support to justice

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and building of capacities in the education, health and agricultural sectors. The French Cooperation Agency also provides technical assistance to the Ministry of Finance and plans to put in place institutional support at the Ministry of Agriculture and Animal Husbandry. 3.4.6 This review shows that the present project will be complementary to these various interventions. At the level of macroeconomic management, in view of the significant needs in this area, the project will boost measures to be taken particularly by the World Bank by providing high-level technical assistance, targeted training for managerial staff and computer equipment. Additionally, the project will entail a complementary action aimed at: (i) strengthening the programming of public investments to improve the effectiveness of public expenditure and consistency of sectoral policies, (ii) support the national employment policy by backing the setting up of a national Employment and Training Observatory to enhance social dialogue and incorporation of the sector in development policies; (iii) strengthening national skills in training in order to rationalize and sustain efforts to develop human resources in the country. IV. THE PROJECT 4.1 Project Design and Rationale 4.1.1 The human, institutional and technical constraints discussed in section 3.2 constitute serious shortcomings that hamper the effectiveness of macroeconomic management and programming of public investments. These constraints are burdensome insofar as the context of consolidation of peace requires wide-ranging reforms to reconstruct the productive base of the economy and enhance governance in order to create conditions for strong and sustainable growth. The entire system of economic management needs institutional capacity building support to become efficient. It is against this background that the present project proposes to support departments of the Ministry of Finance, Ministry of Planning and specific technical ministries in their economic forecasting and management of poverty reduction and development programmes/projects. In other words, the project aims to provide support that will enable the country to acquire an institutional framework, tools, methods and procedures as well as adequate human and material resources to build capacities to formulate and implement macroeconomic and sectoral policies and mobilize external aid resources. 4.1.2 The project has been identified, prepared and appraised by the Bank using a participatory approach that involved the consultation of various officials of ministries and technical departments concerned. Coordination with major development partners, notably the World Bank, UNDP, European Union, French Cooperation and Belgian Cooperation Agencies, also helped harmonize it with the existing support projects. This has resulted from an in-depth diagnosis of the institutional capacities at the level of the various structures concerned and addresses the Government’s concerns to pursue macroeconomic and structural reforms designed to lay the foundations for steady growth geared towards poverty reduction. Furthermore, the project constitutes an instrument of dialogue on the management of the debt whose arrears was the subject of a recommendation by the Board during the review of the Burundi Dialogue Paper in October 2003.

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4.2 Project Areas and Beneficiary Structures 4.2.1 The areas of intervention of the project relate to: (i) strengthening macroeconomic management; (ii) support to the institutional framework for the programming of public investments aimed at consistency between macroeconomic and sectoral strategies, (iii) building of national capacities in on-the-job training and further training. These various measures address the need to support, not only greater effectiveness in macroeconomic management, but also reform efforts whose success will notably promote access to the HIPC Initiative. Support to the public investment programming and the statistical system will particularly contribute to implementing and monitoring the poverty reduction strategy. 4.2.2 The beneficiary structures are: the Planning Directorate, Treasury Directorate, Institute of Statistics and Economic Studies of Burundi, Programming Directorate, planning units of the Ministry of Agriculture and Animal Husbandry and of the Ministry of Public Works and Infrastructure, Employment Directorate and the Training and Advanced Training Centre. The staff of these various structures will receive qualifying training under the project. 4.3 Strategic Context 4.3.1 Burundi formulated a three-year economic reform programme (2004-2006) backed by the Poverty Reduction and Growth Facility (PRGF) that was approved by the IMF Board in January 2004. Prior to this, the Government had finalized in March 2002, the I-PRSP which constitutes the terms of reference of the Government’s emergency programme for consolidating the peace process, strengthening of the rule of law and reducing poverty. The present project is set within this context and will contribute to the implementation of the national capacity building programme whose ultimate goal is to enhance social dialogue and economic management capacities. It complements the other donor interventions, notably the World Bank’s economic management support project concerning the macroeconomic management component. To this end, the project will provide high-level technical assistance, training for key personnel and additional supply of computer equipment. 4.3.2 In relation to the Bank’s policies, the project is consistent with the guidelines of the Vision, the Strategic Plan Objectives (2003-2007) and the ADF-IX policy for the use of grants as an instrument of dialogue and good governance. The project is also in conformity with the Bank’s strategy defined in the 2003-2004 Country Dialogue Paper,, which was approved by the Board in October 2003. Not only will the project contribute to the setting up of an adequate debt management system, but also will enable the Bank, during the various field supervision missions, to enhance dialogue with the country’s authorities and closely monitor the provisions made to restructure the macroeconomic framework. 4.4 Project Objective The sector goal of the project is to contribute to the enhancement of capacities to formulate, implement and monitor economic policies. More specifically, the project aims to develop and consolidate skills in macroeconomic planning, public investment programming and the strengthening of the statistical system by highlighting the development of human resources, the introduction of a relevant methodology and modernization of working tools.

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4.5 Project Description 4.5.1 The main components of the project are:

A. Strengthening of macroeconomic management;

B. Strengthening of the programming and management of public investments;

C. Support for the setting up of an Employment and Training Observatory and strengthening of local on-the-job training capacities;

D. Project management and monitoring. 4.5.2 Description of project outputs: The following outputs are expected:

(i.) An improved system of managing the economy is put in place with the strengthening of the programming framework of the PIP, improvement of the existing macroeconomic framework model, support for the collection and production of statistical data, support for the formulation of a trend chart of the economy through the strengthening of human resources and procurement of adequate computer equipment,

(ii.) Better monitoring of the external and internal debts, through support to the

Treasury Directorate with the training of the staff of the department in modern debt management and analysis techniques (procurement of management software, databases on the debt and computer strengthening);

(iii.) macroeconomic accounts, statistics on employment (ONEF) as well as the

poverty indicators, are produced regularly;

(iv.) management of public investment programming is improved through the setting up of the tools for budget programming, manual for project selection procedures and expenditure programming, project files and databases harmonized with the physical and financial monitoring of projects;

(v.) officers from various structures involved in macroeconomic management,

public investment programming are trained and adequate computer equipment compatible with existing equipment is provided;

(vi.) the Training and Advanced Training Centre is provided with computer

equipment and the trainers are trained. Detailed Description of Project Components and Activities 4.5.3 A consulting firm will be appointed on the basis of a shortlist to provide the experts required and oversee the implementation as well as the monitoring-evaluation of the training programme. Furthermore, international experts who will be assigned to the project by the consulting firm will be responsible during the initial phase of their interventions for undertaking studies on available human resources and identifying training needs. Concerning the on-the-job training seminars and workshops, a master contract will be signed with the Training and

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Advanced Training Centre to organize them with the assistance of international consultants. Lastly, computer equipment as well as software procured under the project will have to be compatible with equipment supplied by the other development partners in order to facilitate their maintenance. Component A: Strengthening of Macroeconomic Management 4.5.4 At the level of this component, the project will complement the World Bank’s intervention as part of the economic management support project. This will consist in creating synergy between the two projects in view of weak macroeconomic management capacities and significant needs for improving the management tools indispensable for the rehabilitation and recovery of the economy. Support for macroeconomic management will be in the form of high-level technical assistance, training and supply of equipment to the Planning Directorate, Treasury Directorate and the Institute of Statistics and Economic Studies (ISTEEBU). The role of the international experts to be assigned to the Macroeconomic Planning Directorate and the Treasury Directorate will be to identify training needs, in consultation with the World Bank’s economic management support project, so as to ensure complementarity in this area. a) Macroeconomic Planning Strengthening Sub-component 4.5.5 The project will strengthen macroeconomic planning capacities by reinforcing macroeconomic analysis, forecast and framework tools. Consultants’ Services 4.5.6 The consulting firm will provide a high-level macroeconomic expert for 3 months to the Macroeconomic Planning Directorate. He/she will be responsible for identifying training needs on the basis of a diagnosis of the macroeconomic management institutional system and human resources. He/she will also strive to strengthen the framework as well as working and consultative procedures between the various departments (Ministry of Finance, Central Bank and ISTEEBU) involved in the formulation of economic policies. Computer and Logistics Equipment 4.5.7 The Macroeconomic Planning Directorate will be provided computer equipment comprising 8 computers equipped with the necessary software and office automation equipment. b) Debt Management Strengthening Sub-component 4.5.8 The objective pursued in this sub-component is to provide the technical means to the Treasury Directorate to assist it to define and manage the debt policy in a way as to promote the mobilization of resources and regular payment of current debts to external and domestic creditors thereby encouraging the development of cooperation with development partners and recovery of private investment. The consulting firm will provide high-level consultants to the Treasury Directorate for the targeted training of the staff and supply computer equipment.

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Consultants’ Services 4.5.9 The consulting firm will provide the Treasury Directorate technical assistance comprising: (i) a high-level expert and a debt specialist (3 months) whose task will be to strengthen the system of debt management and analysis for the formulation of a lending strategy, risk analysis and management, analysis of the debt portfolio and its viability; and (ii) a computer specialist for three (3) months who will install and train the staff in the SYGADE database management software. The two experts will identify training needs on the basis of a diagnostic analysis of the institutional environment of debt management and available human resources. Computer and Logistics Equipment 4.5.10 The Treasury Directorate will be provided computer equipment consisting of 8 computers with appropriate software and accessories as well as office automation equipment. c) Statistical Production Strengthening Sub-component 4.5.11 The objective is to enable the Institute of Statistics and Economic Studies of Burundi (ISTEEBU) to be able to produce good quality and accessible statistics that are indispensable for the formulation and monitoring of economic and social policies. This will entail the production and dissemination of cyclical statistics, conducting of various socio-economic surveys and production of national accounts and macroeconomic and sectoral indicators necessary for the monitoring-evaluation of the poverty reduction policy. In addition to the World Bank support, the project will contribute to strengthening the ISTEEBU human resources through training locally and abroad and will provide office automation and logistical equipment. Computer and Logistical Equipment 4.5.12 The project will provide an additional computer equipment comprising 10 computers with the necessary software and office automation equipment. In order to build the ISTEEBU’s data collection capacities, the project will supply means of transport made up of 15 motorcycles. Component B: Strengthening of Public Investment Programming 4.5.13 Under this component, the project will support efforts by the Ministry of Planning to put in place a functional system of public investment programming. This will entail providing support for a coherent institutional framework for a system of public investment programming and management capable of guiding arbitrations in the implementation of development programmes. The objective is to be able to: (i) redefine an institutional and regulatory framework for the PIP; (ii) strengthen capacities to prepare viable projects that are consistent with the national and sectoral poverty reduction goals; (iii) improve the performance of the project portfolio with the setting up of monitoring-evaluation-auditing mechanisms; and (iv) building capacities for coordinating external aid in order to increase the capacity to absorb external financing. To this end, the project will reinforce the main directorates in their public investment management functions both at the macroeconomic as well as sectoral levels. This will be done by recruiting experts, providing training and procuring modern working equipment and tools.

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a) Public Investment Programming Directorate Strengthening Sub-component 4.5.14 In order to build capacities in the formulation, evaluation and monitoring of the execution of the PIP, the project will support the Programming Directorate. This will entail: (i) recruiting, through a consulting firm, high-level consultants, (ii) providing qualification training; and (iii) financing the procurement of computer and logistical equipment. Consultants' Services 4.5.15 The technical assistance will consist of: (i) a high-level expert in public investment programming (12 months); (ii) a computer specialist (3 months). The Expert in charge of the PIP will provide support for the programming and monitoring of public investments. He/she will also strengthen coordination with sectoral planning units and work closely with experts assigned to the Ministry of Agriculture and Animal Husbandry and to the Ministry of Public Works. Initially, he/she will focus on the diagnostic analysis of the existing investment programming system by paying particular attention to factors concerning operational capacities in the identification, selection, implementation and monitoring-evaluation of projects and the functional linkages between the Programming Directorate, sectoral units, the Planning Directorate and the Treasury Directorate, during the formulation of public investment programmes. Based on this diagnosis, he/she will submit proposals to ameliorate the organization and tools for programming public expenditures. He/she will also oversee the preparation of a manual of procedures in public investment programming. The computer expert will put in place a database as well as a project monitoring file. Computer and Logistics Equipment 4.5.16 The project will finance the procurement of computer equipment (10 computers and the necessary software set up as a network), office automation equipment and office furniture for the Programming Directorate. A vehicle will be procured to enable the Directorate to monitor projects in the field. b) Support to MINAGRIE and MTPE Planning Units Sub-component 4.5.17 The absence of a standardized system of programming and implementation of public investments, in addition to the constraints in technical capacities, has resulted in dysfunctions that hamper the quality of the PIP and the consistency of sectoral strategies. Similarly, the inadequate consultation promotes the compartmentalization of technical departments, weighing heavily on the conceptual framework of projects (manual completion of project sheets, inconsistency of data, inadequate assessment of projects that often lack maturity, delays in conveyance...). These various constraints account for the disparate nature of the PIP, which is more of an inventory of projects (often contradictory) than a set of consistent actions drawn up on the basis of clearly identified sectoral objectives. The aim of this sub-component is to remedy these shortcomings in order to improve the effectiveness of the programming of public investments. The support to the Ministry of Agriculture and the Ministry of Public Works is justified by the size of their share of the PIP (about 35%). This relatively large size is expected to grow in the current phase of reconstruction and recovery of the country’s economy. Support to the project is defined in terms of technical assistance, training and supply of computer and office automation equipment.

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Consultants’ Services 4.5.18 The consulting firm will provide the Planning Unit of the Ministry of Agriculture and that of the Ministry of Public Works two high-level experts for a 12-month period each. The two experts who will be specialists in project planning will work in close collaboration with the expert assigned with the Programming Directorate to set up an appropriate methodology for public investment programming, project monitoring-evaluation as well as project selection criteria. They will contribute to the formulation of sectoral policies. Computer and Logistics Equipment 4.5.19 It is expected that the project will finance, for the two planning units, the procurement of computer equipment (8 computers each, with the necessary software and set up in a network) as well as office automation equipment. Operation 4.5.20 The project will strengthen the operation of the Programming Directorate, the Planning Unit of the MINAGRIE and that of the MPTE by financing the procurement of office consumables and covering the maintenance of equipment and the running of the vehicle allocated to the Programming Directorate. Component C: Support to the Establishment of an Employment Observatory and

National Competences in On-The-Job Training 4.5.21 Under this component, the project aims to improve knowledge on the labour market by setting up a National Employment and Training Observatory (ONEF) that will be an instrument for defining a national employment policy as well as a means of putting in place a training policy that would match labour market trends. It will also seek to provide reliable statistics on employment with a view to integrating the informal sector in development policies. The definition of a national employment policy will also help monitor the respect of the labour law and that of the basic labour principles notably by combating child labour. Furthermore, the project will strengthen resources of the Training and Advanced Training Centre in order to sustain the country’s competences in retraining and on-the-job training. a) Support to the Establishment of ONEF Sub-component 4.5.22 Support for the establishment of ONEF will consist in providing technical resources to the Employment Directorate to support the collection of data in the sector and formulate the national employment policy. This support will be provided by engaging the services of a high-level consultant, providing training and supplying computer and office automation equipment. Consultants’ Services 4.5.23 The consulting firm will provide Employment Directorate a specialist in human resource management (12 months) who will be responsible for helping put in place the National Employment Observatory and the formulation of a national employment policy. He will also contribute to identifying the training needs of the Directorate.

19

Computer and Logistical Equipment 4.5.24 It is expected that the project will finance the procurement of computer equipment (10 computers with the necessary software) as well as office automation equipment for the Employment Directorate. b) National Capacity Building in On-The-Job Training Sub-component 4.5.25 The objective will be to sustain local competences in the area of on-the-job training and advanced training. In addition, the strengthening of the Advanced Training Centre will help implement national training programmes with greater effectiveness and at a lesser cost. Consultants’ Services 4.5.26 The project will recruit an international consultant and specialist in human resource management for 12 months. His task will be to: (i) develop methods and techniques for assessing training needs; (ii) formulate on-the-job training and advanced training programmes; (iii) develop training modules according to their needs; and (iv) propose a programme of training of trainers. He will work closely with the PIU to facilitate the implementation of the training programme identified under the project. Computer and Logistics Equipment 4.5.27 It is expected that the project will finance the procurement of computer equipment (20 computers supplied with the necessary software) as well as office automation equipment for the Training and Advanced Training Centre. Operation 4.5.28 The project will strengthen the operation of the Employment Directorate by financing the procurement of office consumables and overseeing the maintenance of office automation equipment. TRAINING: Training activities planned for the components are as follows: 4.5.29 In order to strengthen human resources that constitute one of the major constraints facing the administration (cf. section 3.2), under the project, a qualifying training programme will be organized in the form of short training and further training at the local level and abroad. The local training of staff is justified for several reasons: firstly, it will help cover the maximum training needs at a low cost and secondly it has the advantage of taking place in the usual work environment of the trainees. Regarding the training abroad, this will be held, preferably, in the sub-region and will focus on areas where local expertise in the speciality identified is non-existent. Only some supervisory staff will be concerned by this training abroad which will last for a reasonable period of time.

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Local Training 4.5.30 The Training and Advanced Training Centre (CPF) that has a long experience in training will be responsible for organizing all local seminars in close collaboration with the beneficiary structures. The consultant to be assigned to the Centre will formulate, in collaboration with his counterparts working under the other two components of the project, integrated training plans within the three months following their assuming duty. These training plans that will provide greater detail of the content of the courses, methodologies and timetables as well as the system of evaluation of training courses will be submitted to the Fund for prior approval. Thus, several workshops are planned for local training. Computer Training Workshops 4.5.31 Computer training, the purpose of which is to enable the beneficiaries to master basic software (word processing and spreadsheets) and familiarize themselves with the management of databases, will be organized in the form of modules as follows:

The first module relating to the introduction to basic data processing will be in 3 training sessions of one week each for 25 persons per session, distributed as follows: 7 from the Treasury Directorate, 2 from the Macroeconomic Planning Directorate, 8 from the Programming Directorate, 8 planning units of the Ministry of Agriculture and Ministry of Public Works, 25 from ISTEEBU, 9 from the Employment Directorate and 16 from the Training and Advanced Training Centre, making a total of 75 persons;

−

−

The second module aims at building capacities in the management of databases. This training activity will be divided into 5 sessions of one week each involving 15 trainees, distributed as follows: 2 from the Treasury Directorate, 4 from the Macroeconomic Planning Directorate, 5 from the Public Investment Programming Directorate, 4 from the planning units of the Ministry of Agriculture and from the Ministry of Public Works; 30 from ISTEEBU, 15 from the CPF and 15 from the Ministries of Health and Education which are also involved in the management of poverty reduction projects, that is a total of 75 persons.

Thematic Workshops (a) Macroeconomic Management: 4 seminars of 10 days each 4.5.32 In view of the inadequacies in the formulation, implementation and monitoring of economic and social policies, the project will strengthen the World Bank’s intervention by supporting the training component relating to macroeconomic analysis, debt management and production of statistics.

The first module will concern the national accounts and macroeconomic aggregates, (Table of Government’s financial operations, statistics of balance of payments, national production accounts and monetary statistics). Three sessions have been planned for managers as follows: 5 from the Macroeconomic Planning Directorate, 3 from the Treasury

−

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Directorate; 5 from the Programming Directorate, 2 from ISTEEBU and 5 from the Central Bank in view of their involvement in macroeconomic management, that is a total of 20 persons;

The second module will deal with macroeconomic framework and forecasting aimed at building managerial and economic management capacities. Emphasis will be placed on forecasting techniques, financial programming, preparation and presentation of economic outlook trends. The practical aspects of this training will be based on simulations and interpretation of results based on the macroeconomic model used at the Macroeconomic Planning Directorate. Four sessions have been planned for the managers, as follows: 5 from the Macroeconomic Planning Directorate, 3 from the Treasury Directorate; 5 from the Programming Directorate; 2 from ISTEEBU and 5 from the Central Bank, that is a total of 20 persons;

−

The third module will relate to the analysis and monitoring of the debt (analyzes of the debt viability, concessionnality and various ratios for monitoring the debt) in order to improve its management and support the country’s debt payment efforts. The training will be based on the SYGADE software for managing the debt database. A session will be organized for 15 persons comprising 6 officers from the Treasury Directorate, 2 from the Macroeconomic Planning Directorate, 4 from the Programming Directorate, and 3 from the Central Bank in view of their involvement in the monitoring of debt;

−

The fourth module will relate to statistical data collection and production techniques. The objective of this workshop is to improve the availability of reliable data and strengthen the efficiency of programming and macroeconomic management. The training will focus on survey techniques, collection and processing of data as well as the media for disseminating statistical information in three sessions. The trainees, who will come from the ISTEEBU will be 40 in number;

−

The ISTEEBU, as an examination centre, organizes competitive exams in the month of April each year, in collaboration with the CESD of Paris, to recruit students for courses in statistical methods and economic statistics. The Institute also organizes competitive exams for African schools of statistics (ENSEA of Abidjan, ISSEA of Yaounde and ENEA of Dakar). In view of the low performance of the candidates in these exams, (for example, in eight years only one candidate was successful in the competitive exams organized with the CESD), annual training sessions to upgrade the candidates for these examinations will be on the basis 3 annual sessions per month. Each annual session will involve 25 trainees. In selecting the candidates, special attention will be paid to deserving female managers.

−

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(b) Public Investment Programming and Management 4.5.33 The training provided in this area will be in the form of modules to be organized in one-week workshops. On the whole, 50 managers will receive this training, that is 8 from the Programming Directorate, 4 from the Macroeconomic Planning Directorate, 8 from the planning unit of the Ministry of Agriculture, 8 from the unit of the Ministry of Public Works, 3 from the Treasury Directorate and 10 from the Ministries of Health and Education, 5 from the Central Bank and 4 from ISTEEBU. The modules are:

Module 1: economic and financial analysis of development projects; −

−

−

−

−

−

Module 2: evaluation and monitoring of development projects; Module3: planning, programming and budgeting of public investments; Module 4: public procurement and donor disbursement procedures; Module 5: financial management and accounting of projects (including project auditing); Module 6: monitoring-evaluation of poverty reduction programmes and projects.

c) Employment Legislation and Labour Market 4.5.34 This training will be in the form of three sessions lasting one week each for 8 officers from the Employment Directorate, 2 from the Planning Directorate, 5 from ISTEEBU and 10 from the private sector, that is 25 trainees.

Module 1: labour legislation and works inspection (1 session) −

− Module 2: analysis of labour market in the informal sector (2 sessions). 4.5.35 Furthermore, in view of the high prevalence of AIDS and its potential impact on the labour market, it is planned that under the project, awareness seminars will be organized (1 national seminar per year) on HIV/AIDS. d) On-The-Job Training Capacity Building 4.5.36 To enhance the potential of the Training and Advanced Training Centre in the area of training, four trainers’ training sessions will be organized. The objective is to have, at the national level, proven competences that will help respond to the training needs of the administration staff. This training will concern 10 trainers from the CPF and 10 from other training sectors in the public and private sectors. Training Abroad 4.5.37 Training abroad will be organized on the basis of the principles identified above (cf. para 4.5.31). For this training, the project has identified short courses for: (i) 3 officers from the Planning Directorate on aspects relating to the management of economic policies, (ii) 1 officer from the Directorate in debt analysis techniques; (iii) 4 officers from the Programming Directorate, 3 from the Unit of the Ministry of Agriculture and 2 from the Unit of the Ministry of Public Works on PIP programming and management techniques, coordination of external aid and negotiation of agreements. The ISTEEBU will also organize short courses abroad for 6 senior officers on advanced statistical analytical methods. This training programme will be reviewed by the technical assistants who will be responsible for

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identifying needs and establishing criteria for selecting beneficiaries. The training outside will concern key areas that cannot be covered locally. The duration of the advanced training abroad should be lower than 3 months. The technical assistants will draw up a training programme abroad on their assumption of duty for each structure concerned whose content, timetable and system of evaluation should be submitted to the Fund for prior approval. Component D: Project Management and Monitoring 4.5.38 A Project Implementation Unit (PIU) will be created at the Ministry of Planning, by a ministerial order. It will be the operational structure for the management of the project and will be responsible for coordinating and overseeing the implementation of all the project components. Furthermore, to ensure the orientation and effective coordination of the project activities, a Steering Committee (see 5.1.1 for its composition), responsible for monitoring the implementation of the project will be put in place. The PIU, which will cater for its technical secretariat, will draw up regular reports on the implementation of the project which it will submit to the committee as well as to the ADF. 4.5.39 The project will finance the auditing of the project accounts at the end of each financial year. Additionally, it will engage the services of an auditing firm to put in place an accounting system for the project. The auditing firm will also provide additional training to the accountant. Computer and Logistics Equipment 4.5.40 Computer equipment for the PIU (3 computers and appropriate software), office automation equipment, office furniture as well as a liaison vehicle will be procured for the PIU. Operation 4.5.41 The project will also finance the maintenance of office automation equipment as well as the procurement of office consumables. 4.6 Impact on the Environment In view of its components, the present institutional support project will not have a negative impact on the environment. On the contrary, with the building of project identification and management capacities, it will enable those in charge of macroeconomic and sectoral policy programming to better assess and include environmental aspects into the definition of investment programmes. The present project is classified as category 3. 4.7 Project Cost The total project cost net of taxes and customs duties will amount to UA 2.24 million, of which 1.70 million will be in foreign currency and UA 0.54 million in local currency. The detailed costs are given in Annex 4 and Tables 4.1 and 4.2 below provide a summary by component and by category of expenditure. The costs make a 5% provision for physical contingencies and 4% for price escalation both in foreign currency and local currency.

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Table 4.1 Cost Estimates by Component

COMPONENT BUF Million UA Million

FE LC Total FE LC Total

A. Macroeconomic management strengthening 611.87 158.40 770.27 0.39 0.10 0.49

B. Public investment programming strengthening 997.17 116.28 1113.45 0.64 0.07 0.71

C. Support to the establishment of ONEF and capacity 656.84 243.95 900.79 0.42 0.16 0.57 building on on-the-job training

D. Project management and auditing 176.18 268.85 445.03 0.11 0.17 0.28

Total base cost 2442.06 787.48 3229.54 1.56 0.50 2.06

Contingencies 122.10 39.37 161.48 0.08 0.03 0.10

Sub-total 2564.17 826.85 3391.01 1.63 0.53 2.16

Price escalation 97.68 31.50 129.18 0.06 0.01 0.08

Project cost 2661.85 858.35 3520.20 1.70 0.54 2.24

In % of total project cost 75.62 24.38 75.62 24.38

Table 4.2:

Cost Estimates by Category of Expenditure

BUF Million UA Million

CATEGORY OF EXPENDITURE FE LC Total FE LC Total % of total

Cost Cost cost

1. Consultant services 1029.0 1029.0 0.66 0.66 31.86

2. Training 634.5 386.2 1020.7 0.40 0.25 0.65 31.61

3. Equipment 637.4 100.3 737.7 0.41 0.06 0.47 22.84

4. Operation 300.9 300.9 0.00 0.19 0.19 9.32

5. Auditing 141.2 141.2 0.09 0.09 4.37

Total cost base 2442.1 787.5 3229.5 1.56 0.50 2.06 100.00

Contingencies 122.1 39.4 161.5 0.08 0.03 0.10

Sub-total 2564.2 826.8 3391.0 1.63 0.53 2.16

Price escalation 97.7 31.5 129.2 0.06 0.01 0.08

Project cost 2661.8 858.3 3520.2 1.70 0.54 2.24

In % of total project cost 75.62 24.38 75.62 24.38

4.8 Sources of Finance and Expenditure Schedule The Project will be co-financed by the Burundian Government and the ADF, as indicated in Tables 4.3 and 4.5. The tables indicate that the ADF grant amounting to UA 2.13 million represents 95% of the project cost and covers the foreign currency costs, part of the local currency costs related to training and part of the operating costs of the Project Implementation Unit. The Government will cover the balance of expenditure in local currency, that is UA 0.11 million representing 5% of the project cost. Expenditures borne by the Government will concern the operating expenses and office supplies for the project implementation.

Table 4.3:

Sources of Finance (UA Million)

SOURCE FE LC Total %

ADF 1.70 0.43 2.13 95.00

Government 0.11 0.11 5.00

Total 1.70 0.54 2.24

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Table 4.4:

Schedule of Expenditure by Component BUF Million UA Million

COMPONENT 2005 2006 2007 Total 2005 2006 2007 Total

A. Strengthening of macroeconomic planning 509.54 140.83 189.22 839.59 0.32 0.09 0.12 0.53 B. Strengthening of public investment programming and management 590.77 335.04 287.85 1213.66 0.38 0.21 0.18 0.77 C. Support to the establishment of ONEF and 527.65 327.82 126.39 981.86 0.34 0.21 0.08 0.63 Training capacity building D. Project management and auditing 197.81 143.63 143.63 485.08 0.13 0.09 0.09 0.31 Total 1825.77 947.33 747.10 3520.20 1.16 0.60 0.48 2.24

Table 4.5:

Schedule of Expenditure by Source of Finance (UA Million)

SOURCE 2005 2006 2007 Total %

ADF 1.13 0.56 0.44 2.13 95.00

Government 0.03 0.04 0.04 0.11 5.00

Total 1.16 0.60 0.48 2.24 100.00

Table 4.6

ADF Financing by Category of Expenditure in millions of UA

CATEGORY OF EXPENDITURE

2005

2006

2007

Total

1. Consultant services 0.40 0.27 0.04 0.71 2. Training 0.19 0.21 0.31 0.71 3. Equipment 0.47 0.02 0.02 0.51 4. Operation 0.03 0.03 0.03 0.10 5. Auditing 0.04 0.03 0.03 0.10

Total 1.13 0.56 0.44 2.13 V. PROJECT IMPLEMENTATION 5.1 Executing Agency 5.1.1 The project will be implemented by the Project Implementation Unit (PIU) to be created at the Ministry of Planning. The provision by the Ministry of Planning of office space for the Unit and the refurbishment of the latter are conditions for the effectiveness of the grant. As the operational structure of the project management, the PIU will be responsible for overseeing the implementation of the project in the various administrations, monitoring its implementation and managing the procurement of goods and services. In view of the human and organizational capacities of the various directorates of the Ministry, and the

26

fact that the project concerns several structures, the Unit must be autonomous to ensure the implementation as well as effective monitoring of the project activities. A high level officer who will be in charge of the coordination of the project activities will be appointed to the Unit by the Minister of Planning. Three (3) curricula vitae (CVs) corresponding to the terms of reference of the project coordinator will be submitted to the Fund for prior approval. It will also be responsible for overseeing the strengthening of coordination with the activities of other donors particularly the World Bank, the UNDP, Belgium and France which also operate in the institutional building domain. The Unit will be responsible for the formulation and submission of quarterly reports, training programmes and any other document concerning the present project to the Fund. It will keep a reliable account to ensure the monitoring and control of expenses by category as well as the preparation of reports on the financial evaluation of the project. In carrying out his day-to-day tasks, the Project Coordinator will be assisted by an accountant whose CV will be submitted to the Fund for prior approval, a secretary and a messenger-driver. Furthermore, officers will be appointed in each Directorate involved in the project to serve as interlocutors to the Project Implementation Unit. 5.1.2 An operating budget will be allocated to the project to ensure its smooth implementation. This will essentially cover the following elements:

Operating expenses relating to the project implementation and to various office supplies; and

−

−

Benefits paid to the Project Implementation Unit staff.

5.2 Institutional Arrangements 5.2.1 The project management and monitoring component provides for the setting up of a Project Steering Committee (PSC) whose Chairman will be appointed by the Minister of Planning. It will be made up of representatives from the directorates concerned by the project (Treasury Directorate, Macroeconomic Planning Directorate, Public Investments Programming Directorate, ISTEEBU Management, Employment Directorate, the Planning Unit of the Ministry of Agriculture and Animal Husbandry, the Planning Unit of the Ministry of Public Works and Infrastructure, the CPF, the Technical Secretariat of the Interministerial monitoring Committee of the national capacity building programme for good governance and the civil society). 5.2.2 As a structure for driving, guiding, validating and controling the project activities, the PSC will oversee the consistency of the training programme to be submitted to the Bank at the latest six (6) months after the entry into force of the grant. The Steering Committee will validate the status reports drawn up by the Project Implementation Unit as well as the consultants’ reports. It will take the steps that it will deem necessary to ensure the smooth implementation of the various project components and will address any problem relating to competence in order to ensure the perfectly coordinated implementation of the works. The Committee will hold quarterly meetings but other meetings may be convened where necessary. The secretariat will be provided by the Coordinator of the Project Implementation Unit.

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5.2.3 The institutional arrangements for the implementation of the project therefore comprise the Project Steering Committee, the Project Implementation Unit and representatives from the project beneficiary structures. The organization chart of the Project Implementation Unit is given in Annex 3. 5.3 Implementation Schedule The grant is expected to enter into force by October 2004. The project should start with the delivery of goods and commencement of the planned services. The project duration is estimated at three years and the completion is planned for December 2007.

Table 5.1 Estimated Project Implementation Schedule

Activity

1. Presentation to the Board 2. Signing of protocol agreement and grant

effectiveness 3. Project launch mission 4. Invitation for bidding 5. Delivery of goods and services 6. Recruitment of consultants 7. Supervision missions 8. Annual auditing of accounts 9. End of project 10. Government completion report 11. Bank’s completion report

Responsible Body ADF ADF/GVT ADF PIU PIU PIU ADF ADF GVT ADF

Date/Period July 2004 October 2004 December 2004 November 2004 April 2005 April 2005 Dec. 05 /April 06/ Oct. 06 /May 07 Dec. 05/ Dec. 06/ Dec. 07 Dec. 2007 April 2008 May 2008

5.4 Procurement Arrangements 5.4.1 The procurement arrangements are summarized in Table 5.2. The procurement of goods and services financed by the Fund will be in accordance with the Bank’s rules of procedure for the procurement of goods or, where applicable, with the Bank’s rules of procedure for the use of consultants, based on the appropriate Bank standard bidding documents. Goods 5.4.2 Procurement of goods is divided into three lots, namely, computer and office automation equipment, vehicles and office furniture. The procurement of computers and office automation equipment valued at UA 0.32 million will be based on international competitive bidding (ICB). 5.4.3 Procurement of vehicles and office furniture amounting to UA 0.11 million will be in accordance with the national competitive bidding procedures (NCB). The amount per procurement is lower than UA 100,000 and there are enough qualified suppliers in Burundi to guarantee quality and competition.

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5.4.4 The various other goods for the project operation amount to UA 0.10 million and will be based on local shopping. Each contract is lower than UA 10,000. 5.4.5 The procurement of software on debt management amounting to UA 0.08 million will be by negotiation with the UNCTAD. This negotiation is justified by the fact that the Treasury Directorate currently uses the UNCTAD debt management software which will be updated for the project. Consultants’ Services and Training 5.4.6 Procurement of consultant services amounting to UA 0.71 million for technical assistance to the various departments concerned by the project as well as training in the amount of UA 0.71 million as presented in Table 5.2, will be in accordance with the Bank’s rules and procedures for the use of consultants. A consulting firm will be commissioned to this end upon request for proposals based on a shortlist and using the selection procedure based on the assessment of technical proposals and their prices. 5.4.7 Logistics services for organizing local training seminars amounting to UA 0.03 million will be directly procured on the basis of an agreement with the Training and Advanced Training Centre (CPF). This institution has the necessary skills and resources as well as adequate experience in the field. 5.4.8 The annual auditing of the project accounts as well as the setting up of an accounting system and the training of the accountant which are estimated at UA 0.10 million will be procured by competition based on a shortlist of consulting firms and the selection procedure on the comparability of technical proposals and the least expensive financial proposal. Executing Agency 5.4.9 The Project Implementation Unit will be responsible for the procurement of goods, services and training for the project. The resources, capacity, expertise and experience of the Project Manager will be adequate to undertake the procurement. General Procurement Notice and Review Procedures 5.4.10 The text of the General Procurement Notice for goods and services has been adopted with the Government and will be issued for publication in Development Business, as soon as the grant proposal is approved by the Board of Directors. Review Procedures 5.4.11 The following documents will be submitted for review and approval by the Bank prior to publication: (i) specific procurement notice; (ii) bidding documents or letters of invitation to consultants; (iii) evaluation reports of contractors’ and suppliers’ bids or consultants’ proposals comprising recommendations for the tender awards. To this end, the prior approval of the Bank on the bidding documents and the technical report will be required; and (iv) draft contracts if different from the bidding documents.

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Table 5.2 Procurement of Goods and Services

UA million

Category of Expenditure

ICB

NCB

Other

Shortlist*

Financing other than ADF

Total

1. Goods 1.1 Computer and Office Automation Equip. 0.32 (0.32) 0.32 (0.32) 1.2 Specific software 0.08 (0.08) 0.08 (0.08) 1.3 Furniture and equipment 0.07 (0.07) 0.07 (0.07) 1.4 Vehicles 0.04 (0.04) 0.04 (0.04) 2. Consultants’ Services & Training 2.1 Technical assistant 0.71 (0.71) 0.71 (0.71) 2.2 Training 0.03 (0.03)1 0.68 (0.68) 0.71 (0.71) 3. Auditing 0.10 (0.10) 0.10 (0.10) 4. Operation 0.21 (0.10) 0.21 (0.10) TOTAL 0.32 (0.32) 0.19(0.19) 0.24 (0.13) 1.49 (1.49) 2.24 (2.13)

* The shortlist applies to the use of consultants only. “Other” refers to NCB, international or national shopping and negotiation. The figures in parenthesis indicate the amounts financed by the ADF. 1 Logistical expenses relate to the organization of local training workshops. 5.5 Disbursement Arrangements Disbursement for the operating expenses will be by the special account method, replenished according to modalities approved by the ADF. Requests for replenishment of the special account will be accompanied by a programme of activities acceptable to the ADF and a summary of the justification of the use of the previous replenishment. Disbursements on contracts (for equipment, supplies, etc.) will be by the direct payment method to suppliers based on contracts signed following the competitive bidding. The release of funds will be conditioned by the justification of the use of at least 50% of the previous funds. The Project Implementation Unit will check the conformity of the services of the various suppliers and service providers of the project with the terms of reference and will prepare disbursement requests that it will submit to the Project Steering Committee for onward transmission to the Bank. Expenses below UA 30,000 will be by the special account method, with the prior agreement of the ADF. To this end, a special account will be opened in a commercial bank to receive the ADF resources meant for the project implementation. The opening of the special account will be a grant condition. 5.6 Monitoring and Evaluation The monitoring and evaluation of the project implementation will be the responsibility of the Project Implementation Unit and the Steering Committee. The beneficiary and the Fund will be informed, through regular quarterly activity reports prepared by the Project Implementation Unit, using the format agreed to with the Bank. These will cover, for the quarter under review, aspects relating to the project implementation, including the status of the project, expenses, work scheduling, analysis of discrepancies noted as well as possible problems encountered and the solutions proposed. They will also provide an outline of the next quarter activities. Furthermore, the Unit will prepare a project completion report within six months following the completion of the Project. The Bank will conduct project supervision missions.

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5.7 Financial and Audit Reporting

5.7.1 To ensure the effective execution of expenses, an accounting firm will be selected at the start of the project to put in place the private type of accounting system compatible with the project activities. The system should take into account the components, categories of expenditure and sources of finance. The Accounting Firm will develop a manual of financial management and put in place a computerized management system. It will also provide supplementary training to the accountant. The project accounts will be maintained by the Project Implementation Unit which will keep complete records of expenditures by component, by category and source of finance, as well as separate accounts for all the operations financed by the Fund. Auditing

Accounting

5.7.2 The project accounts will be audited at the end of each fiscal year with separate auditing for the special account. The auditing will be conducted by external auditors approved by the Fund. The auditing reports, in line with the relevant Bank’s requirements, will be submitted annually to the Fund within 6 months following the end of each financial year. 5.8 Donor Coordination 5.8.1 The present project has been prepared in close collaboration with other donors. During the project appraisal mission, the Bank held in-depth discussions with donors represented in Bujumbura, namely the World Bank, the European Union, French Cooperation Agency, Belgian Cooperation Agency and UNDP. These discussions reviewed their respective operations, the status of the Bank’s cooperation with the country and prospects for co-financing under the national capacity building for good governance programme. The design of the project thus included not only the Government reform programmes but also the activities of development partners in the area of economic management, including the World Bank. It is expected that consultations between donors will be held during the field missions. There is a synergy of objectives and actions between all the institutional support projects supported by the major partners mentioned above. 5.8.2 Furthermore, following recommendations by the Forum of partners in Burundi held in Brussels in January 2004, an Emergency Programme Monitoring Committee consisting of representatives of donors and the administration was created on 6/02/2004. Placed under the chairmanship of the Minister of Planning, the role of the Committee is to monitor donor commitments during the transitional phase and provide a consultative framework between the Government and the donors in the implementation of the emergency programme. This Committee will provide a permanent consultative framework between the various partners particularly in the area of capacity building for good governance. In this regard, the Steering Committee which is the driving and control body of the present project will work in close collaboration with the Emergency Programme Monitoring Committee in order to create a synergy of actions undertaken by the various partners operating in capacity building for good governance.

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VI. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent Costs The implementation of the project will lead to the procurement of a number of computers in support of the computerization of the major directorates and procurement of mobile support equipment for monitoring projects and production as well as collection of statistics. The maintenance of the computers and vehicles and motorcycles will involve recurrent expenses estimated at UA 0.06 million per annum. In view of the amount involved, these costs could be borne without difficulty by the Government. Furthermore, no fresh recruitment will be made for the Project Implementation Unit. The staff will be seconded, and it will only receive benefits from the ADF grant which will be ceased to be paid at the end of the project. 6.2 Project Impact Sustainability The implementation of the project will help enhance the effectiveness of the Ministry of Planning and the target technical ministries in macroeconomic management and design of public investment programmes. The project will also make it possible to better reflect the major concerns of the Government in the area of poverty reduction in the programmes. Emphasis will be placed on improving the institutional and regulatory framework of public investments and the training of officers from beneficiary institutions will increase the impact sustainability prospects of the project. Moreover, the sustainability of the project impact will be largely dependent upon the public service reform whose priority measures aim at developing capacities by notably creating a legal and regulatory environment as well as favourable material conditions for the self-fulfilment of Government employees in their duties. Ultimately, the reform will lead to the setting up of a new public service status geared towards strategic planning and career management, continuing education and further training of the workforce which will thereby promote the stability of the employees. Similarly, the redeployment of the workforce, proposed under the reform, will enable the various structures to have minimum capabilities for defining, implementing and monitoring economic policies thus constituting a key factor of sustainability. 6.3 Major Risks and Mitigating Measures 6.3.1 The major risks of the project are as follows: (i) insufficient institutional capacities in the country that may jeopardize the pursuit of economic and structural reforms embarked upon under the Government’s 2004-2006 programme; (ii) high mobility of trained administration personnel towards the private sector or international organizations; (iii) continued refusal by some of the rebels to adhere to the Arusha Accords, thus constituting a serious threat to peace and national reconciliation. 6.3.2 The first risk could be reduced by the commitment of the donors during the Brussels Forum of January 2004 to support the national capacity building programme for good governance. The mid-term implementation of this programme will foster the availability of a larger number of trained personnel in the formulation and management of economic and social policies. Furthermore, the return of exiled personnel to the country with the consolidation of peace constitutes a key factor for building national capacities. This process will be all the more important as the country’s development partners support the Government programme of integration and reintegration. Regarding the second risk, under

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the public service reform, the Government plans to put in place a new charter for public servants geared towards the setting up of a strategic and management planning of careers as well as a more attractive working environment that will contribute to reinforcing the stability of the personnel. Similarly, interventions envisaged by the various development partners under the national capacity building programme will improve the development of human resources in the administration, thereby contributing to reducing this risk. Lastly, and concerning the third risk, the African mediation effort being pursued as well as the international pressure should prompt all the rebel groups to start negotiations and ultimately sign a ceasefire that will help consolidate peace and the economic recovery. VII. PROJECT BENEFITS 7.1 Economic and Social Benefits 7.1.1 The institutional capacities of departments in charge of controlling public expenditure and managing the economy are weak. The management-level staff targeted by the project generally lack the skills and experience required to manage the country’s economic policies and ensure transparent management of public resources. Besides, the lack of multidisciplinary teams, particularly in the analysis and selection of public investment projects constitutes a serious constraint that limits the possibilities of choosing pertinent sectoral strategies in accordance with the economic development and poverty reduction goals. To overcome this constraint, the Burundian Government will highlight the development of human resources as part of the public service reform. 7.1.2 In this context, the project will contribute to addressing the constraints by building middle-level capacities with targeted training on the management and steering of the economy, (basic data processing, macroeconomic forecasting and management, programming of public investments, physical and financial monitoring of projects, control and monitoring of budget execution, debt management and production of reliable statistical data). The implementation of the training component will improve the effectiveness of the Government’s action and contribute to enhancing transparency and the rationality of public expenditure thereby facilitating the achievement of the macroeconomic restructuring objective as defined in the triennial programme supported by the PRGF. Additionally, the project will put in place harmonized databases on projects that will facilitate the formulation and implementation of policies that are in line with the poverty reduction strategic framework 7.2 Impact of Project on Crosscutting Issues 7.2.1 Impact on Poverty Reduction: The Project will have a significant social impact, since the measures to support the improvement of the programming of public investments for the rationalization of budgetary expenditure and a better selection of projects should result in greater effectiveness in the management of public finance that will necessarily benefit the social sectors (education and health) and the poverty reduction programmes. Furthermore the support the project will provide the statistical system will contribute to better monitoring of the implementation of the PRSP by facilitating the preparation of a ranking of indicators of poverty by gender and by region. 7.2.2 Impact on Governance: As an integral part of the national good governance strengthening programme, the project will have a direct positive effect on governance by improving capacities to steer the economy and manage the country’s economic and social

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policies. Control over the country’s debt policy as well as the improvement of public finance management thus fostering the stabilization of the macroeconomic framework that constitute key factors in the strengthening of economic governance. 7.2.3 Impact on Gender: The training programme that will be implemented under the present project will concern about sixty women who represent a little over 20% of the workforce of departments directly involved in the project. Furthermore, special attention will be paid to the participation of deserving female candidates during the preparation of competitive exams to statistical schools. Similarly, the building of capacities in the selection of projects, in conformity with the poverty reduction strategy will translate into a positive impact of public investments on women, who are severely affected by poverty. . Special focus will be given, through seminars to be organized under the project, to the problem of mainstreaming of gender issues in sectoral strategies as outlined in the interim poverty reduction strategy. 7.2.4 Impact on Private Sector Development: The project will contribute to creating an enabling environment for private sector development. The support provided by the project to the definition of a national employment which is a priority area of the Government to improve the employment sector constitutes a key element for boosting the private sector. Similarly, the improvement of the effectiveness of the programming of public investments will help promote both the participation of the private sector and the entire civil society in the country’s economic and social development efforts. VIII. CONCLUSION AND RECOMMENDATIONS 8.1 Conclusions Since October 1993, Burundi has been facing a deep socio-political crisis that has had severe consequences on the economic and social fabric of the country. The country’s institutional capacities have been eroded over the years translating into the disorganization of the administration, loss of motivation of Government employees as the dilapidation and obsolescence of the working tools. This situation has been aggravated by the lack of training and retraining programme for executives. It is to curb the cumulative effects of the deterioration of the situation and disorganization of the country’s administrative apparatus that the Government intends to implement the capacity building programme to foster economic growth. The present project is set within this framework and its implementation will contribute to achieving this goal. The project is also in response to the Government’s efforts in making all the debt repayments due for 2003 amounting to US$ 6.46 million. It also settled 20% of the stock of arrears, that is US$ 6.24 million as well as payments due to February and April 2004 amounting to US$ 3.29 million. The Bank’s strategy is to find a solution to the problem of arrears that will make for a full resumption of its cooperation with Burundi and facilitate its access to the HIPC initiative. The present project is set within this framework and constitutes an instrument for dialogue with the Government. 8.2 Recommendations In light of the foregoing, it is recommended that an ADF grant not exceeding UA 2.13 million be awarded to the Government of the Republic of Burundi to finance the institutional capacity building project. The effectiveness of the grant will be subject to the following particular conditions prior to the first disbursement:

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a) Conditions of Effectiveness of the Grant

(i) The Protocol Agreement will become effective on its date of signature.

b) Conditions Precedent to the First Disbursement: disbursement of the grant is subject to the fulfilment by the beneficiary of the following conditions:

(i) Provide evidence of the opening of a special account at a bank, acceptable

to the ADF, into which the Grant resources shall be paid. (§5.5);

(ii) Provide evidence to ADF of the setting up of the Project Implementation Unit (PIU) at the Ministry of Planning and the allocation of offices to it (§5.1.1);

(iii) Provide evidence of the recruitment of a manager as the coordinator of the

project activities and an accountant whose experiences and qualifications will have been deemed acceptable to the ADF (§5.1.1);

(iv) Provide evidence of the commitment to recruitment of the support staff of

the Project Implementation Unit (§5.1.1); (v) Provide evidence of the establishment by the Minister of Planning of the

Project Steering Committee made up of representatives of the Treasury Directorate, Macroeconomic Planning Directorate, Programming Directorate, ISTEEBU Management, Employment Directorate, Planning Unit of the Ministry of Agriculture, Planning Unit of the Ministry of Public Works, Training and Advance Training Centre, Technical Secretariat of the Interministerial Monitoring Committee of the Capacity Building for Good Governance Programme and the civil society. (§5.2);

c) Other Conditions The Beneficiary shall also:

(i) Submit to the ADF for approval, the training programmes as well as the list of CVs of the staff appointed to as participants (§5.2).

Annex 1 Burundi: Administrative Map

This map has been prepared by the African Development Bank Group for the convenienattached. The denominations used and the boundaries shown on this map do not imply oaffiliates, any judgment on the legal status of any territory or any endorsement or accept

RWANDA

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LACTANGANYIKA

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TANZANIETANZANIA

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TANZANTANZANIA

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the readers to which it is part of the Group and its of such boundaries.

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Annex 2

ORGANIZATION CHART OF PROJECT IMPLEMENTATION STRUCTURE

Technical SecretariatPNRCBG Interministerial Steering Committee

COMPONENT AStrengthening of Macro-economic Management

COMPONENT BStrengthening of

Public Investment Programmingand Management

COMPONENT CSupport to the Establishment of

l'ONEF and Building ofTraining Capacities

Project ImplementationUnit (PIU)

Projec Coordinator

Project Steering Committee

Ministry of DevelopmentPlanning and

Reeconstruction

Annex 3

Project Implementation Schedule

Activity Month J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Presentation to BoardSigning of Protocol AgreementEntry Into Force of GrantSetting Up of PIUEstablishment of Steering CommitteeEquipmentCompetition for Computer EquipmentDelivery of Goods and Start UpConsultantsRecruitment of International ExpertsTraining: seminars and workshops Data Processing Workshops Thematic Workshops Short Courses Abroad Annual Auditing of AccountsOperation

Burundi: Detailed Cost of Institutional Capacity Building Project Annex 4

UP UP BUF Million UA Million COMPONENT & CATEGORY OF EXPENDITURE Unit Q UA000 F000 2005 2006 2007 Total Co-fin. 2005 2006 2007 Total Co-fin. LC FE LC FE LC FE ADF GVT LC FE LC FE LC FE ADF GVT COMPONENT A:

Strengthening of Macroeconomic Management 1. Strengthening of Macroeconomic Planning Macroeconomic Expert Month 3 13.1 14700 44.1 44.1 44.1 0.03 0.00 0.00 0.03 0.03 2. Training Computer Training W/s 3 7.0 9000 9.0 9.0 9.0 27.0 27.0 0.01 0.01 0.01 0.02 0.02 Thematic Training W/s 4 7.0 8400 5.0 3.4 5.0 3.4 10.1 6.7 33.6 33.6 0.00 0.00 0.00 0.00 0.01 0.00 0.02 0.02 Sub total 14.0 3.4 14.0 3.4 19.1 6.7 60.6 60.6 0.01 0.00 0.01 0.00 0.01 0.00 0.04 0.04 Equipment 3. Equipment PC+ software PC 8 0.9 1000 8.0 8.0 8.0 0.01 0.01 0.01 Laser Printers Print 6 0.6 700 4.2 4.2 4.2 0.00 0.00 0.00 Large Printer 1 1.7 2100 2.1 2.1 2.1 0.00 0.00 0.00 Scanner 2 0.4 600 1.2 1.2 1.2 0.00 0.00 0.00 UPUs UPU 8 0.3 400 3.2 3.2 3.2 0.00 0.00 0.00 Photocopying Machines Photo 1 5.4 8400 8.4 8.4 8.4 0.01 0.01 0.01 Sub-total 27.1 27.1 27.1 0.02 0.02 0.02 2. Debt Management Improvement 1. Consultants 88.2 0.0 88.2 88.2 0.06 0.00 0.00 0.06 0.06 Debt Expert Month 3 14700 44.1 44.1 44.1 0.03 0.00 0.00 0.03 0.03 Computer Expert 3 14700 44.1 44.1 44.1 0.03 0.00 0.03 0.03 2. Training Workshops on Debt Management and Analysis W/s 1 8400 5.0 3.4 8.4 8.4 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 Sub-total 5.0 3.4 8.4 8.4 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 3. Equipment PC+ software PC 8 1000 8.0 8.0 8.0 0.01 0.01 0.01 Portable computer N/bk 2 1700 3.4 3.4 3.4 0.00 0.00 0.00 Laser Printer Print 4 700 2.8 2.8 2.8 0.00 0.00 0.00 UPU UPU 8 400 3.2 3.2 3.2 0.00 0.00 0.00 Scanner Scan 2 600 1.2 1.2 1.2 0.00 0.00 0.00 Photocopying Machine Photo 1 8400 8.4 8.4 8.4 0.01 0.01 0.01 Debt Management Software 116.2 116.2 116.2 0.07 0.07 0.07 Sub total 143.2 143.2 143.2 0.00 0.09 0.09 0.09 1. Strengthening of ISTEEBU 2. Training Workshop on National Account W/s 3 8400 5.0 3.4 5.0 3.4 5.0 3.4 25.2 25.2 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.02 Training Workshop on Statistics W/s 3 8400 5.0 3.4 5.0 3.4 5.0 3.4 25.2 25.2 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.02Institutes of Statistics Exam Preparatory Course 3 42200 25.3 16.9 25.3 16.9 25.3 16.9 126.6 126.6 0.02 0.01 0.02 0.01 0.02 0.01 0.08 0.08 Advanced Training Abroad m/m 12 12.2 14800 44.4 44.4 88.8 177.6 177.6 0.00 0.03 0.03 0.06 0.11 0.11 Sub total 35.4 68.0 35.4 68.0 35.4 112.4 354.6 354.6 0.02 0.04 0.02 0.04 0.02 0.07 0.23 0.23 3. Equipment PC+ software PC 10 1000 10.0 10.0 10.0 0.01 0.01 0.01 Laser Printer Print 5 700 3.5 3.5 3.5 0.00 0.00 0.00 Large Printer 2 3700 7.4 7.4 7.4 0.00 0.00 0.00

UP UP BUF Million UA Million COMPONENT & CATEGORY OF EXPENDITURE Unit Q UA000 F000 2005 2006 2007 Total Co-fin. 2005 2006 2007 Total Co-fin. LC FE LC FE LC FE ADF GVT LC FE LC FE LC FE ADF GVT UPU UPU 10 400 4.0 4.0 4.0 0.00 0.00 0.00 Photocopying Machine Photo 1 8400 8.4 8.4 8.4 0.01 0.01 0.01 Scanners Scan 3 600 1.8 1.8 1.8 0.00 0.00 0.00 Mopeds Mob 15 0.5 600 9.0 9.0 9.0 0.01 0.01 0.01 Sub total 44.1 44.1 44.1 0.03 0.03 0.03 Consultants 132.3 0.0 0.0 132.3 132.3 0.00 0.08 0.00 0.00 0.08 0.08 Training 49.4 71.4 54.5 74.7 54.5 119.1 423.6 423.6 0.03 0.05 0.03 0.05 0.03 0.08 0.27 0.27 Equipment 214.4 214.4 214.4 0.14 0.14 0.14 Base Cost Component A 49.4 418.0 54.5 74.7 54.5 119.1 770.3 770.3 0.03 0.27 0.03 0.05 0.03 0.08 0.49 0.49 Physical Contingencies (5%) 2.5 20.9 2.7 3.7 2.7 6.0 38.5 38.5 0.00 0.01 0.00 0.00 0.00 0.00 0.02 0.02 Provision for Inflation (4%) 2.0 16.7 2.2 3.0 2.2 4.8 30.8 30.8 0.00 0.01 0.00 0.00 0.00 0.00 0.02 0.02 Total Component A 53.9 455.7 59.4 81.4 59.4 129.8 839.6 839.6 0.03 0.29 0.04 0.05 0.04 0.08 0.53 0.53 COMPONENT B Public Investment Support a. Strengthening of DPR 1. Consultants 102.9 58.8 58.8 220.5 220.5 0.07 0.04 0.04 0.14 0.14 Expert in Public Investment Programming Month 12 14700 58.8 58.8 58.8 176.4 176.4 0.04 0.04 0.04 0.11 0.11 Computer Expert Month 3 14700 44.1 44.1 44.1 0.03 0.00 0.00 0.03 0.03 2. Training Computer Workshop 4 9000 18.0 9.0 9.0 36.0 36.0 0.01 0.01 0.01 0.02 0.02 Workshop on Investment Programming W/s. 3 8400 5.0 3.4 5.0 3.4 5.0 3.4 25.2 25.2 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.02 Workshop on Project Analysis and Management W/s 3 8400 5.0 3.4 5.0 3.4 5.0 3.4 25.2 25.2 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.02 Advanced Training Abroad M/m 12 7.8 14800 14.8 29.6 133.2 177.6 177.6 0.00 0.01 0.02 0.08 0.11 0.11 Sub total 28.1 21.5 19.1 36.3 19.1 139.9 264.0 264.0 0.02 0.01 0.01 0.02 0.01 0.09 0.17 0.17 3. Equipment PC+ software PC 10 1000 10.0 10.0 10.0 0.01 0.01 0.01 Server + UPU Serv 1 6900 6.9 6.9 6.9 0.00 0.00 0.00 Scanner 2 600 1.2 1.2 1.2 0.00 0.00 0.00 Laser Printer Print 8 700 5.6 5.6 5.6 0.00 0.00 0.00 Large Printer 3 3700 11.1 11.1 11.1 0.01 0.01 0.01 UPU UPU 10 400 4.0 4.0 4.0 0.00 0.00 0.00 Photocopying Machine Photo 2 8400 16.8 16.8 16.8 0.01 0.01 0.01 Networking for 10.6 10.6 10.6 0.01 0.01 0.01 Vehicle 1 21.8 26400 26.4 26.4 26.4 0.02 0.02 0.02 Sub total 92.6 92.6 92.6 0.06 0.06 0.06 b. Strengthening of MAGRI Planning Unit 1. Consultants Project Planning Expert Month 12 14700 88.2 88.2 176.4 176.4 0.06 0.06 0.11 0.11 2. Training Training Abroad 3 14800 14.8 14.8 14.8 44.4 44.4 0.01 0.01 0.01 0.03 0.03 3. Equipment PC+ software PC 8 1000 8.0 8.0 8.0 0.01 0.01 0.01 Server + UPU Serv 1 6900 6.9 6.9 6.9 0.00 0.00 0.00 Laser Printer Print 5 700 3.5 3.5 3.5 0.00 0.00 0.00 UPU UPU 8 400 3.2 3.2 3.2 0.00 0.00 0.00 Photocopying Machine Photo 1 8400 8.4 8.4 8.4 0.01 0.01 0.01

UP UP BUF Million UA Million COMPONENT & CATEGORY OF EXPENDITURE Unit Q UA000 F000 2005 2006 2007 Total Co-fin. 2005 2007 Total Co-fin. LC FE LC FE LC FE ADF GVT LC FE LC FE LC ADF GVT Networking 14.5 14.5 14.5 0.01 0.01 0.01 Sub total 44.5 44.5 44.5 0.03 0.03 0.03 C. Strengthening of METP Planning Unit 1. Consultants 73.5 73.5 147.0 147.0 0.05 0.05 0.09 0.09 Public Works Engineering Expert Month 10 14700 73.5 73.5 147.0 147.0 0.05 0.05 0.09 0.09 2. Training Advanced Training Abroad 2 14800 14.8 14.8 29.6 29.6 0.01 0.00 0.01 0.02 0.02 3. Equipment PC+ software PC 8 1000 8.0 8.0 8.0 0.01 0.01 0.01 Server + UPU Serv 1 6900 6.9 6.9 6.9 0.00 0.00 0.00 Laser Printer Print 5 700 3.5 3.5 3.5 0.00 0.00 0.00 UPU UPU 8 400 3.2 3.2 3.2 0.00 0.00 0.00 Networking for 14.5 14.5 14.5 0.01 0.01 0.01 Photocopying Machine Photo 1 8400 8.4 8.4 8.4 0.01 0.01 0.01 Sub total 44.5 44.5 44.5 0.03 0.03 0.03 Consultants 264.6 220.5 58.8 543.9 543.9 0.17 0.14 0.04 0.35 0.35 Training 28.1 51.1 19.1 51.1 19.1 169.5 338.0 338.0 0.02 0.03 0.01 0.03 0.01 0.11 0.22 0.22 Equipment 181.5 181.5 181.5 0.12 0.12 0.12 Office Furniture and Equipment 8.8 8.8 8.8 26.4 26.4 0.01 0.01 0.01 0.02 0.02 Operation 7.9 7.9 7.9 23.7 23.7 0.01 0.01 0.01 0.02 0.02 Maintenance of Computers, Vehicles, Fuel 5.1 5.1 5.1 15.2 15.2 0.00 0.00 0.00 0.01 0.01 Office Consumables 2.8 2.8 2.8 8.4 8.4 0.00 0.00 0.00 0.01 0.01

Base Cost Component B 44.8 497.2 35.8 271.6 35.8 228.31113.

5 1113.5 0.03 0.32 0.03 0.17 0.03 0.15 0.73 0.73 Physical Contingencies (5%) 2.2 24.9 1.8 13.6 1.8 11.4 55.7 55.7 0.00 0.02 0.00 0.01 0.00 0.01 0.04 0.04 Provision for Inflation (4%) 1.8 19.9 1.4 10.9 1.4 9.1 44.5 44.5 0.00 0.01 0.00 0.01 0.00 0.01 0.03 0.03

Total Component B 48.8 542.0 39.0 296.1 39.0 248.91213.

7 1213.7 0.04 0.35 0.03 0.19 0.03 0.16 0.79 0.79 Component C: Putting in Place ONEF and Capacity

Building Training 1. Support to Employment Directorate 1. Consultants Human Resources Expert Month 12 14700 88.2 88.2 176.4 176.4 0.06 0.06 0.11 0.11 2. Training Thematic Workshop W/s 3 8400 5.0 3.4 5.0 3.4 5.0 3.4 25.2 25.2 0.00 0.00 0.00 0.00 0.00 0.01 0.01HIV/AIDS Awareness Workshop W/s 3 42100 42.1 42.1 42.1 126.3 126.3 0.03 0.00 0.03 0.03 0.00 0.08 0.08 Training Abroad 2 14800 14.8 14.8 29.6 29.6 0.00 0.01 0.01 0.02 0.02 Sub total 47.1 3.4 47.1 18.2 47.1 18.2 181.1 181.1 0.03 0.00 0.03 0.01 0.03 0.01 0.11 0.11 3. Equipment PC+ software PC 10 1000 10.0 10.0 10.0 0.01 0.01 0.01 Laser Printer Print 6 700 4.2 4.2 4.2 0.00 0.00 0.00 UPU UPU 10 400 4.0 4.0 4.0 0.00 0.00 0.00 Large Printer LP 2 3700 7.4 7.4 7.4 0.00 0.00 0.00 Photocopying Machine Photo 1 8400 8.4 8.4 8.4 0.01 0.01 0.01 Sub total 34.0 34.0 34.0 0.02 0.02 0.02 2. Strengthening of Vocational Training Centre

2006 FE

UP UP BUF Million UA Million COMPONENT & CATEGORY OF EXPENDITURE Unit Q UA000 F000 2005 2006 2007 Total Co-fin. 2005 2007 Total Co-fin. LC FE LC FE LC FE ADF GVT LC FE LC FE LC ADF GVT 1. Consultant 12 14700 88.2 88.2 176.4 176.4 0.06 0.06 0.11 0.11 2. Training of Trainers Training of Trainers Workshops At 4 8400 5.0 3.4 10.1 6.7 5.0 3.4 33.6 33.6 0.00 0.00 0.02 0.01 0.00 0.00 0.00 0.02 Advanced Training Abroad M/m 3 14800 14.8 14.8 14.8 44.4 44.4 0.00 0.01 0.00 0.01 0.00 0.01 0.03 0.03 Sub total 5.0 18.2 10.1 21.5 5.0 18.2 78.0 78.0 0.00 0.01 0.01 0.01 0.00 0.01 0.05 0.05 3. Equipment PC+ software PC 25 1000 25.0 25.0 25.0 0.02 0.00 0.02 0.02 Portable computer N/bk 4 14700 58.8 58.8 58.8 0.04 0.04 0.04 Overhead Projector OP 4 4400 17.6 17.6 17.6 0.01 0.00 0.01 0.01 Laser Printer Print 25 700 17.5 17.5 17.5 0.01 0.00 0.01 0.01 Large Printer LP 4 3700 14.8 14.8 14.8 0.01 0.00 0.01 0.01 Scanners Scan 6 600 3.6 3.6 3.6 0.00 0.00 0.00 0.00 UPU UPU 25 400 10.0 10.0 10.0 0.01 0.00 0.01 0.01 Photocopying Machine Photo 3 8400 25.2 25.2 25.2 0.02 0.00 0.02 0.02 Sub total 172.5 172.5 172.5 0.11 0.00 0.11 0.11 Consultant 176.4 176.4 352.8 352.8 0.00 0.11 0. 0 0.00 0.11 0 0.00 0.22 0.22 Training 5 2 0.03 52.2 21.5 7. 39.7 52.2 36.3 259.1 259.1 0.03 0.01 0.04 0.03 0.02 0.17 0.17 Equipment 206.5 206.5 206.5 0.00 0.13 0.00 0.00 0.00 0.00 0.13 0.13 Office Furniture and Equipment 21.1 21.1 21.1 63.4 63.4 0.01 0.01 0.01 0.04 0.04 Operation 6.3 6.3 6.3 19.0 19.0 0.00 0.00 0.00 0.01 0.01 Maintenance Computer Equipment, 0.01 3.5 3.5 3.5 10.6 10.6 0.00 0.00 0.00 0.01 Consumables 2.8 2.8 2.8 8.4 8.4 0.00 0.00 0.00 0.01 0.01 Base Cost Component C 79.6 404.4 84.7 216.1 79.6 36.3 9 00.8 900.8 0.04 0.26 0.04 0.14 0.04 0.02 0.53 0.57 Physical Contingencies (5%) 4.0 20.2 4.2 10.8 4.0 1.8 45.0 45.0 0.00 0.01 0.00 0.01 0.00 0.00 0.03 0.03 Provision for Inflation (4%) 3.2 16.2 3.4 8.6 3.2 1.5 36.0 36.0 0.00 0.01 0.00 0.01 0.00 0.00 0.02 0.02 Total component C 86.8 440.8 92.3 235.5 86.8 39.6 981.9 981.9 0.04 0.28 0.04 0.15 0.04 0.03 0.58 0.63 COMPONENT D: Project Management 1. Equipment, Supplies and Misc. PC+ software PC 3 1000 3.0 3.0 3.0 0.00 0.00 0.00 Laser Printer Print 2 700 1.4 1.4 1.4 0.00 0.00 0.00 UPU UPU 3 1.2 400 1.2 1.2 0.00 0.00 0.00 Photocopying Machine Photo 1 8400 8.4 8.4 8.4 0.01 0.01 0.01 Liaison Vehicle Veh. 1 17.4 21000 21.0 21.0 21.0 0.01 0.01 0.01 Sub total 35.0 35.0 35.0 0.02 0.02 0.02 Office Furniture and Equipment 3.5 3.5 3.5 10.6 10.6 0.00 0.00 0.00 0.01 0.01 Operation (cons. equipment maintenance) 1.8 1.8 1.8 5.3 5.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 Operation Coordinator’s Benefits Month 36 1.0 0. 3 1100 13.2 13.2 13.2 39.6 39.6 0.01 0.01 0.01 0 0.03 Accountant’s Benefits Month 36 0.9 800 9.6 9.6 9.6 28.8 28.8 0.01 0.01 0.01 0.02 0.02 Secretary’s Benefits Month 36 0.4 350 4.2 4.2 4.2 12.6 12.6 0.00 0.00 0.00 0.01 0.01 Driver’s Benefits Month 36 0.3 290 3.5 3.5 3.5 10.4 0.01 10.4 0.00 0.00 0.00 0.01 Coordinator’s Wages 36 0.087 100 1.2 1.2 1.2 0.00 3.6 3.6 0.00 0.00 0.00 0.00 Accountant’s Wages 36 0.070 80 1.0 1.0 1.0 2.9 2.9 0.00 0.00 0.00 0.00 0.00 Secretary’s Wages 36 0.035 42 0.5 0.5 0.5 1.5 1.5 0.00 0.00 0.00 0.00 0.00 Driver’s Wages 36 0.026 30 0.4 0.4 0.4 1.1 1.1 0.00 0.00 0.00 0.00 0.00 Other Operating Costs (rent, miscellaneous expenses) 50.8 50.8 50.8 152.5 0.03 0.10 152.5 0.03 0.03 0.10

2006 FE

UP UP BUF Million UA Million COMPONENT & CATEGORY OF EXPENDITURE Unit Q UA000 F000 2005 2006 2007 Total Co-fin. 2005 2007 Total Co-fin. LC FE LC FE LC FE ADF GVT LC FE LC FE LC ADF GVT Sub total Government 9 9 0.10 53.9 53. 53. 161.6 161.6 0.03 0.03 0.03 0.10 Total Operating Cost 0.16 86.1 86.1 86.1 258.3 96.7 161.6 0.05 0.05 0.05 0.06 0.10 Base Cost Component D 0.06 0.19 89.6 35.0 89.6 0.0 89.6 303.8 142.3 161.6 0.06 0.02 0.06 0.00 0.09 0.10 Physical Contingencies (5%) 0.01 4.5 1.8 4.5 0.0 4.5 15.2 7.1 8.078 0.00 0.00 0.00 0.00 0.00 0.00 0.01 Provision for Inflation (4%) 3.6 1.4 3.6 0.0 3.6 12.2 5.7 6.462 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 Total Component D 0.06 0.06 97.7 38.2 97.7 0.0 97.7 331.2 155.1 176.1 0.06 0.02 0.21 0.10 0.11G. Auditing 56.9 42.2 42.2 141.2 141.2 0.00 0.04 0.03 0.03 0.09 0.09 Project Auditing 4 31620 42.2 42.2 42.2 126.5 126.5 0.00 0.03 0.03 0.03 0.08 0.08 Installation Accounting Syst. & Training of Accountant M/m 1.0 14700 14.7 14.7 14.7 0.00 0.01 0.01 0.01 Physical Contingencies (5%) 0.00 2.8 2.1 2.1 7.1 7.1 0.00 0.00 0.00 0.00 0.00 Provision for Inflation (4%) 0.00 2.3 1.7 1.7 5.6 5.6 0.00 0.00 0.00 0.00 0.00 Total Audit 1 0.10 62.0 46.0 46.0 53.9 153.9 0.00 0.04 0.03 0.03 0.10

PROJECT BASE COST 263.5 1411.6 264.5 259.5 0.17 604.6 425.93229.

5 3068.0 161.6 0.17 0.90 0.17 0.39 0.27 2.06 1.95 0.10 Physical Contingencies (5%) 13.2 70.6 13.2 30.2 13.0 21.3 161.5 153.4 8.1 0.01 0.04 0.01 0.02 0.01 0.01 0.10 0.10 0.01 Provisions pour inflation (4%) 10.5 56.5 10.6 24.2 10.4 17.0 129.2 122.7 6.5 0.01 0.04 0.01 0.02 0.01 0.01 0.08 0.08 0.00

TOTAL PROJECT COST 288.3 282.8 2 0.18 2.24 287.2 1538.6 659.0 464.33520.

3344.1 176.1 0.18 0.98 0.18 0.42 0.30 2.13 0.11

2006 FE

ANNEX V Page 1 of 7

Terms of Reference of Experts Macroeconomic Expert

The macroeconomic consultant will provide assistance to the Macroeconomic Directorate. His main tasks will be to:

1. Prepare an accurate diagnosis of the institutional environment and available human and

material resources. 2. Based on this, and the World Bank’s economic management support project, areas of

concentration for the project with a view to strengthening the actions of the PAGE project. The consultant shall highlight the training component. To this end, he/she shall develop a training scheme for officials of the Department, which will be forwarded to the ADF for approval.

3. Additionally, he/she will participate in the putting in place of a framework for the

preparation of the economic outlook and macroeconomic summary review.

Experience Required: the applicant must be a holder of a university degree (postgraduate). He must have a minimum of ten-years experience as a macroeconomist in a public or private development institution. He must also have occupied a high position and acquired solid experience in the management of institutional development programmes and projects preferably in a developing. Lastly, the applicant must have a good command of the French language. Duration of Contract: Three (3) months. Duty Station: MPDR/ Directorate of Macroeconomic Planning, Bujumbura (Burundi) Expert in Public Debt Management and Monitoring

The role of the Consultant, an expert public debt management, will be to build the technical and administrative capacity of the Treasury Directorate (DT) of the Ministry of Finance. He shall ensure, in collaboration with the DGP, that the statistics provided by the Treasury Directorate and the Bank of the Republic of Burundi on the external debt are consistent. His main tasks will be to:

1. Prepare an accurate diagnosis of the institutional environment and available human and

material resources; 2. Based on this, propose measures that will enhance the technical and administrative

effectiveness of the DT (staff reorganisation and redeployment);

3. Propose an implementation plan for the training scheme to be submitted to the ADF for approval

4. Propose a method to be pursued for the smooth management of the public debt in order to

ensure the regular repayment of debt due to the country’s development partners;

Experience Required: the applicant must have a university degree (postgraduate) with a minimum of ten years experience in public debt management. He must have solid knowledge of the financing mechanisms of multilateral institutions. Also, he must have skills in micro data processing as well as mastery of debt management and analysis software.

Duration of Contract: Three (3) months Duty Station: Ministry of Finance / Treasury Directorate, Bujumbura (Burundi)

ANNEX V Page 2 of 7

Terms of Reference of Computer Expert

1. Install the 5.3 version of the SYGADE DSM + and train the staff; 2. Develop a training plan and train the staff of the Treasury Directorate in the application of the

SYGADE and DSM+ software already installed;

4. Check the database

The applicant must have a postgraduate degree (postgraduate), in computer science with at least ten years experience in the debt management and analysis software. He must have a good command of the French language, which is the county’s official language. Duration of Contract: Three (3) months Duty Station: Ministry of Finance /Treasury Directorate, Bujumbura (Burundi) Expert in Charge of Public Investment Programming: The expert shall strengthen the General Directorate of Programming in its programming and monitoring of public investments as well as coordination with other departments involved in the management of public investments. His main tasks will be to:

1. Analyze the entire system of investment programming with special emphasis on the following areas: (i) a review of the organizational structure of the DGP with a view to proposing a reorganization as well as a redeployment of staff in the various departments and submit a proposal for the reorganisation and redeployment of the staff in the various departments; (ii) operational capacities in the identification, selection, programming, implementation and monitoring-evaluation of projects; and (iii) operational links between the DGP, planning units of line ministries and the Debt Directorate, during the formulation of public investment programmes;

2. Formulate an accurate diagnosis on the following points mentioned above and propose measures to enhance the technical and administrative effectiveness of the system in the implementation of the PIP and use of available resources;

3. Propose, within a period of three (3) months following his assumption of duty, an implementation

plan for the training programme to be forwarded to the ADF for approval 4. Propose a mechanism of consultation between the DGP and the technical departments in the

definition of sectoral and investment programming strategies; 5. Propose a method for improving the implementation of projects and the coordination of external

aid through an effective control of disbursements; and 6. Make recommendations for improvements on the information management system relating to

the physical and financial monitoring and implementation of projects;

7. Formalize a method of evaluation, programming, budgeting and physical and financial monitoring of projects and an impact analysis of the country’s economy and develop models for the preparation of project monitoring-evaluation reports and notes;

3. Train the staff in the analysis and interpretation of the SYGADE outputs and in the calculation of the present value, projections on the outstanding debt and debt service, calculation of penalties on interests and calculation of accrued interests;

ANNEX V Page 3 of 7

8. Verify and assess the consistency of the public investment programme, projects selected and their impact on sectoral policies, particularly poverty;

Required Qualifications: the applicant must have a postgraduate degree in development economics (post-graduate), wide experience of at least ten years in the management of projects in Africa. He must have a good command of French, which is the official language of the country.

Duration of Contract: Twelve (12) months

Duty Station: Ministry of Planning, Development and Reconstruction, Bujumbura, (Burundi).

Computer Expert in Charge of Projects

1. Select and install a computer network (hardware and software) for the physical and financial management of projects to ensure a reliable and timely monitoring of the latter;

2. Assist in the development of a project file and computerized management chart for the

monitoring of investment programmes and budgets; 3. Put in place databases to monitor development financing and projects; 4. Develop a programme for monitoring counterpart funds and recurrent costs;

6. Prepare guides for users.

Required Qualifications: the applicant must have a postgraduate degree in computer science (postgraduate), wide experience of at least ten years in data processing, notably in the installation of computer systems. He must have a good command of French, the official language of the country.

Duration of Contract: three (3) months Duty Station: Ministry if Planning, Development and Reconstruction, Bujumbura, (Burundi). Expert in Project Planning, in charge of supporting the Planning Unit of the Ministry of Agriculture and Animal Husbandry

The duty of the expert will be to strengthen the Planning Unit in the programming and monitoring-evaluation of sector projects. The main tasks of the consultant will be as follows:

1. Undertake an accurate diagnosis of the institutional environment, available human and material resources

2. Based on this, propose measures to enhance the administrative and technical effectiveness

of the Unit (reorganization and human resources),

3. Fine-tune the on-the-job training and advanced training modules for the staff of the Ministry or ministries working in close collaboration with the latter. Within a period of three (3) months after his assumption of duty, he should propose an implementation plan for the training programme to be forwarded to the ADF for approval;

4. Step up the consultation with the DPG and define procedures and criteria for assessing and

selecting projects in the formulation of projects during the preparation of the PIP;

5. Draw up a training plan and train the executive and junior staff of the Directorate in the computer system put in place; and

ANNEX V Page 4 of 7

5. Put in place a project monitoring-evaluation mechanism and put in place a projects database;

The applicant must have a postgraduate degree in development economics (postgraduate), a wide experience of at least ten years in the management of public projects in Africa. He must have a good command of French, the official language of the country. Duration of Contract: Twelve (12) months

Duty Station: Ministry of Agriculture and Animal Husbandry, Bujumbura, (Burundi) Expert in Project Planning, in charge of providing support to the MTPE Planning Unit

The role of the expert will be to strengthen the Planning Unit in project programming and monitoring-evaluation in the sector. His main tasks will be to:

3. Identify on-the-job training and advanced training modules for the staff of the Ministry or ministries working in close collaboration with the latter. He should propose within a period of three (3) months after his assumption of duty an implementation plan for the training programme to be forwarded to the ADF for approval;

1. Undertake an accurate diagnosis of the institutional environment and available human and material resources;

2. Based on this, propose measures to enhance the administrative and technical effectiveness

of the Unit (reorganization and human resources);

4. Step up the consultation with the DPG and define procedures and criteria for assessing and

selecting projects in the formulation of projects during the preparation of the PIP;

5. Assess needs to be covered in the area of public utilities and provide assistance for the formulation of a strategy for the sector; and

6. Put in place a mechanism for the monitoring-evaluation of infrastructure projects and set up

a projects databank; The applicant must have a postgraduate degree in development economics , a wide experience of at least ten years in the management of public projects in Africa. He must have a good command of French, the official language of the country.

Duration of Contract: Twelve (12) months

Duty Station: Ministry of Public Works and Infrastructure, Bujumbura, (Burundi) Terms of Reference of the Expert To Provide Support to the Employment Directorate

The duty of the expert will be to contribute to a better mastery of employment issues through a better planning of human resources. He will define a methodical process for the implementation of country’s employment creation and promotion policy. The tasks of the expert will be to:

(i) Review or address various socioeconomic issues on employment in the formal and informal sector, on incomes and productivity;

(ii) Compile, analyze and interpret statistical data relating to employment;

(iii) Support the putting in place of a national observatory on employment and training

(ONEF);

ANNEX V Page 5 of 7

(iv) Proffer advice on the employment policy, particularly with regard to young people and on the policy to be pursued as well as concrete measures to be taken. To this end, the consultant will contribute to the formulation of a national employment policy.

The applicant must have a postgraduate degree in economics, specializing in employment issues and human resource planning , with at least ten years experience in institutional development and human resource management. He must have a good command of French, the official language of the country. Duration of Contract: Twelve (12) months Duty Station: Ministry of Labour and Social Security, Employment Directorate, Bujumbura, (Burundi) Terms of Reference of Expert in Human Resources (CPF) Purpose of mission: the duty of the expert will be to strengthen the Training and Advanced Training Centre (CPF) in order to build the country’s capacities in the on-the-job training and advanced training. The tasks of the consultant will be to:

(v) undertake a diagnostic review of the CPF aimed at identifying structural weaknesses and put forward proposals for an institutional reorganization to improve the effectiveness of the centre as an on-the-job training and advanced training institute;

(vi) develop methods and techniques for assessing training needs; (vii) formulate on-the-job training and advanced training programmes; (viii) develop training modules according to needs and propose a trainers’ training programme; (ix) in collaboration with the project implementation unit, oversee the implementation of the

training programme proposed for the project. The applicant must have a postgraduate degree in human resources , a wide experience of at least ten years in institutional development and human resource management. He must have a good command of French, the official language of the country. Duration of Contract: Twelve (12) months

Duty Station: Training and Advanced Training Centre (CPF), Bujumbura, (Burundi)

Terms de Reference of Coordinator

Aim: The duty of the Coordinator will be to monitor the project activities under the supervision of the Project Steering Committee. He must produce all the documents required by the Government and the Bank relating to the project.

The main tasks of the Coordinator will be to:

1. Undertake the day-to-day management of the project and coordinate the activities with other institutions;

2. Submit all the problems encountered to the Steering Committee as part of the implementation of the project and propose concrete solutions where possible;

3. Undertake all the tasks relating to procurement;

ANNEX V Page 6 of 7

4. Verify the conformity of the Government’s procurement system for the project with the Bank’s rules and procedures for the procurement of goods/works and services;

5. With the support of technical assistants, draw up a capacity building programme (local training, seminars, study trips etc.) to be implemented under the project;

6. Prepare quarterly reports to be submitted to the Bank and the government on the progress of the project;

7.

Participate in all meetings or working sessions convened by the Government or other donors likely to generate fresh ideas for improving the economic and social management capacities of Burundi.

Required Qualifications: the applicant must hold a university degree in economics with a solid experience in institutional development and macroeconomic management. He must have a sound knowledge of procurement procedures and at least ten years working experience in the administration or international organizations.

Duration of Contract: Three (3) years.

Duty Station: Bujumbura, (Burundi) Terms of Reference of PIU Accountant Aim: Under the supervision of the Project Coordinator, the Accountant will be responsible for keeping the project accounts. In this regard, he will ensure that the project resources are used for the project in conformity with the guidelines of the Bank Group. The Accountant will be responsible for the following specific tasks:

(i) opening and keeping files on all disbursements by the TAF and the Government for the project;

(ii) identification and keeping of a comprehensive list of contractors, suppliers and goods for

the procurement of goods and services; (iii) preparation of capital expenditure requests for the project activities; (iv) putting in place of a budgetary and accounting management and internal auditing system

for the financial management of the project activities; (v) participation in the preparation of budget estimates by component; (vi) proper maintenance of general and cost accounting: opening of an account book to support

the project activities, comprising the bank and suppliers’ accounts as well as the signatories of the accounts in question;

(vii) preparation of payment/repayment requests for the signature of the coordinator; (viii) preparation of half-yearly and progress reports for the project accounts; (ix) processing of allowances and payment of staff benefits.

ANNEX V Page 7 of 7

Required Qualifications: the applicant must have a university degree in accounting and sound experience in the financial management of projects. He must be familiar with procurement procedures and have at least 10 years experience in the administration or international organizations. Duration of Contract: Three (3) years.

Duty Station: Bujumbura, (Burundi) Composition and Terms of Reference of Steering Committee

1. A representative from the Treasury Directorate,

5. A representative from the Planning Unit of MINAGRIE

Composition: the Steering Committee will comprise the following members:

2. A representative from the Macroeconomic Planning Directorate, 3. A representative from the Programming Directorate, 4. A representative from ISTEEBU,

6. A representative from the Planning Unit of MTPE 7. A representative from the MTSS 8. A representative from the Technical Secretariat of the Interministerial Committee of the

PNRCBG 9. A representative from the civil society (to be appointed)

Main Tasks of the Committee:

1. The Steering Committee will work in close collaboration with the Technical Secretariat of the Interministerial Committee in charge of monitoring the implementation of the PRCNBG chaired by the Ministry of Planning;

2. The Project Steering Committee whose Chairman will be appointed by the Government will meet every three (3) months and will be responsible for coordinating, monitoring implementing the project and, where necessary, will determine corrective measures to be taken for the smooth implementation of the project in accordance with its programme of activities;

3. Validate the training programme drawn up by the experts and the Coordinator with the support of technical assistants and its implementation according to a defined timetable;

4. Review and validate the reports of the short term consultants and forward them to the Bank for comments;

5. In the month of its creation, the Committee will hold a meeting to establish the general procedures and guidelines that will guide the implementation of the project;

6. Monitor activities for the procurement of equipment and consultants’ services. He will ensure that the accounting of expenses follows the Bank’s procedures;

7. For the purposes of monitoring the project the committee will meet once a month to review progress made and provide solutions to problems that may arise.

8. Foster consultation between the various donors in the areas of capacity building.