Language : ENGLISH Original : FRENCH

PROJECT : Vocational and Technical Education Development Support Project COUNTRY : NIGER PROJECT APPRAISAL REPORT Date : October 2010

Team Leader S. ILBOUDO Senior Education Analyst Extension3342 OSHD.2 E. NYIRINKWAYA Architect, Extension 2351, CGSP

Team Members

Z. TOURE Gender Expert Extension 3861 QRQRH. DORSOUMA Climate Change Expert Extension 3304 OSUS Vocational and Technical Education and Training Consultant Architecture Consultant

Sector Director Regional Director Division Manager

A.SOUCAT Director Extension 2046 OSHD J. LITSE Director Extension 2047 ORWB B. SAVADOGO Division Manager Extension 3163 OSHD.2

Peer Reviewers

Bineta BA Lead Health Analyst OSHD.3 C. Michel GUEDEGBE Principal Education Analyst OSHD.2 Baboucar SARR Lead Education Analyst OSHD.0 Samuel Alain NNA EBONO Financial Management Specialist ORPF.2 Neila CONTE Regional Procurement Coordinator SNFO M. EL ARKOUBIM Senior Water and Sanitation Expert OWAS.1

AFRICAN DEVELOPMENT FUND

TABLE OF CONTENTS Currency Equivalents, Acronyms and Abbreviations, Project Information Sheet, Project Summary, Logical Framework and Implementation Schedule ……………………………………………………….………...i - viii I. STRATEGIC OREIENTATION AND JUSTIFICATION……………………………………………… ..1 1.1 Project Linkages with Country Strategy and Objectives………………………………………..…….1 1.2 Justification for Bank Intervention……………………………………………………………..………1 1.3 Aid Coordination……………………………………………………………………………………….2 II. PROJECT DESCRIPTION…………………………………………………………………………………3 2.1 Project Components……………………………………………………………………………………3 2.2 Technical Options and alternatives Explored………………………………………………….……….4 2.3 Project Type……………………………………………………………………………………………6 2.4 Project Cost Estimates and Financing Arrangements………………………………………………….8 2.5 Project Area and Beneficiaries…………………………………………………………………………8 2.6 Participatory Approach to Project Identification, Design and Implementation…………….………….9 2.7 Bank Group Experience and Lessons Learnt in project Design…………………………….………….9 2.8 Key Performance Indicators…………………………………………………………………,………..10 III. PROJECT FEASIBILITY…………………………………………………………………………………10 3.1 Economic and Financial Performance………………………………………………………….…… 10 3.2 Environmental and Social Impacts…………………………………………………………….………11 3.3 Climate change………………………………………………………………………………………...11 3.4 Gender………………………………………………………………………………………………....11 3.5 Social Sector…………………………………………………………………………………………..12 3.6 Forced Resettlement…………………………………………………………………………..………12 IV. IMPLEMENTATION…………………………………………………………………………..…………12 4.1 Implementation Arrangements………………………………………………………………………..12 4.2 Monitoring of Project Activities………………………………………………………..……………..15 4.3 Governance………………………………………………………………………………..…………..15 4.4 Sustainability…………………………………………………………………………….……………15 4.5 Risk Management…………………………………………………………………………………….16 4.6 Knowledge Development……………………………………………………………………………..17 V. LEGAL FRAMEWORK………………………………………………………………………….……..…17 5.1 Legal Instrument…………………………………………………………………………….…………17 5.3 Compliance with Bank Policies……………………………………………………………………….18 VI. RECOMMENTATIONS…………………………………………………………………………………..18 Annex I ; Comparative Socio-Economic Indicators…………………………………………….19 Annex II : Table of ADB Portfolio in Niger………………………………………………………20 Annex III : Key Related Projects Financed by the Bank and other Development Partners………..22 Annex IV : Project Area Map………………………………………………………………………24

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Currency Equivalents October 2010

UA 1 = CFAF 747.942 UA 1 = EUR 1.14023 UA 1 = USD 1.55619

Fiscal Year 1 January - 31 December

Weights and Measures

1 metric tonne = 2 204 pounds 1 kilogramme (kg) = 2,200 pounds 1 metre (m) = 3,281 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.621 mile 1 hectare (ha) = 2.471 acres

Acronyms and Abbreviations

ADF : African Development Fund ADPRS : Accelerated Development and Poverty Reduction Strategy AFD : French Development Agency ANPE : National Employment Promotion Agency BD : Bidding Documents CFPA : Vocational Training and Apprenticeship Centre CSP : Country Strategy Paper CTK : Kalhamaro Technical Centre CW : Civil Works DEFPT : Vocational and Technical Education and Training Directorate DGEFPT Vocational and Technical Education Directorate DEP : Department of Studies and Programming DIE Department of Infrastructure and Equipment DIPJ : Department of Youth Vocational Integration DRFM : Department of Financial Resources and Equipment DSI : Department of Statistics and Information Technology ENAV : Economic Net Added Value ESMP : Environmental and Social Management Plan EU : European Union IERR : Internal Economic Rate of Return LC : Luxembourg Cooperation MFPT : Ministry of Vocational and Technical Education MFP/A : Ministry of Vocational Training and Literacy PDDE : Ten- Year Education Development Programme PSC : Project Steering Committee SORAZ : Société de Raffinerie de Zinder (Zinder Refinery Company) UA : Unit of Account UIT : University Institute of Technology UNDP : United Nations Development Programme VTET : Vocational and Technical Education and Training WB : World Bank XOF : CFA Franc

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Project Information Sheet

Client information BORROWER AND RECIPIENT : REPUBLIC OF NIGER EXECUTING AGENCY : Ministry of Vocational Training and Literacy Financing Plan

Source Amount Instrument

ADF

UA 7.87 million

Project Loan

ADF UA 17.63 million Project Grant

GVT UA 1.415 million Counterpart Contribution

TOTAL COST UA 26.91 million

ADF Key Financial Information

Loan /Grant Currency

UA

Interest Type * N.A

Interest Rate Spread* N.A

Commitment Fee* 0.50

Other Charges*

Service charge 0.75

Tenor 50 years

Grace Period 10 years

FRR, NPV (baseline scenario)

EIRR, ENPV (baseline scenario) 14% ; MOF 4.27 M.

*where applicable Timeframe – Key Stages (expected)

Approval of Initial Concept Note

16 September 2009

Approval of Revised Concept Note 11 October 2010

Project Appraisal 21 September to 8 October 2009

Project Appraisal Update 08 to 20 October 2010

Project Approval December 2010

Effectiveness June 2011

Last Disbursement December 2016

Completion June 2016

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Project Summary

1. Project Overview

1.1 The Vocational and Technical Education Development Support Project is designed to modernize vocational and technical education. Its objective is to increase the population’s access to quality vocational and technical education, particularly girls’ access to the industrial sector, improve training curricula in line with job market demand, and strengthen the capacities of institutions responsible for formulating technical education and vocational training (VTET) sub-sector policies. It covers the following four regions of the country: Niamey, Maradi, Zinder and Diffa. The project activities are scheduled to be completed in five years. The total project cost is estimated at XOF 20.10 billion (UA 26.91 million), excluding taxes. 1.2 The main project beneficiaries are: (i) all first cycle students of general, vocational and technical secondary education, (ii) all graduates from technical, vocational and science high schools, (iii) VTET system trainers, (iv) the Ministry of Vocational and Technical Training, and (v) companies operating in the industrial sectors. 1.3 Qualified and competent human resources from VTET will help to improve the business climate, enhance the country’s attractiveness for foreign and/or national investors, and thereby promote economic growth and poverty reduction. The development of the institutional capacities of the Ministry responsible for VTET will help to establish an efficient information system so as to improve management mechanisms (planning, programming, collection, processing, analysis and dissemination of updated and reliable statistical data) with data according to sex, region and any other criteria, which will serve as a basis for decisions relating to equity (gender, social, regional). The beneficiaries have been and will be involved in: (i) needs identification, (ii) monitoring and implementation, and (iii) evaluation of project outcomes. 2. Needs Assessment 2.1 The project is intended to respond to Niger’s new socio-economic opportunities, namely relating to the exploitation of uranium and oil deposits, and finalization of the country’s major projects, particularly the Kandadji dam, the railroad and the dry port. The job market demand for skilled and qualified labor from VTET is constantly growing, whereas the major projects are only starting up. The project will help to train quality technical labor to support the emerging industrial sectors and the country’s economic growth. The industrial sectors targeted by the project include: (i) civil engineering; (ii) electronic and electro-technical engineering; (iii) mechanical engineering, and (iv) petrochemical engineering. This solution is appropriate for the country, given that the on-the-job training of technicians and intermediate staff in companies is ill-suited to Niger’s current industrial environment. 2.2 The envisaged investment constitutes a response to the needs of the State and its agencies, parents, students, trainers and industrial sector enterprises. It is economically profitable.

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3. Bank’s Value Added and Knowledge Management The project will consolidate the Bank’s presence in the VTET sub-sector and reinforce its activities relating to education and improvement of the quality of training. After contributing through its first three operations to improving and increasing access to science education, the Bank’s assistance which is geared towards general education, has already produced tangible results with a pedagogic and technical study to improve the teaching of sciences in secondary schools and two Education Projects whose achievements will be consolidated. The lessons learnt from previous operations have been used to design this project. The implementation of the project will enable the Bank to improve future training schemes implemented by the Bank, the Government of Niger, or other countries or partners.

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Results-Based Logical Framework

Long-term results I. Goal Impact: Direct Beneficiaries

Impact Indicators Expected long-term progress: Assumptions

Improve the living conditions of the populations

Achievement of the millennium development goals: - poverty reduction - improved access to education - reduction of gender disparities

Students, teachers, administrative and teaching staff , students’ parents and employers of graduates of the education system

The proportion of the population living below the poverty line is reduced Access to education is improved Gender disparities in education are reduced

The rate of the population living below the poverty line falls from 62.1 in 2005 to 55 in 2015 VTET student population increasing from 8500 for 2008 to 15 000 in 2015 Source and method: National Institute of Statistics, and national report on progress towards achievement of MDGs

Assumptions: Continued implementation of the ADPRS Risks: Inadequate funds for implementation of the ADPRS. Mitigation measure: Continued mobilization of required resources from donors to support the ADPRS

Medium-Term Results

II Project purpose: Increase access by the populations to quality vocational and technical education

Impacts The number of students enrolled in VTET is increased The quality and relevance of VTET are improved More skilled and qualified human resources matching the needs of the economy are available

Beneficiaries Students, teachers, students’ parents and employers of graduates of the education system Graduates and employers

Impact indicators Proportion of students enrolled in VTET Rate of success at end- of-cycle examinations Proportion of trained trainers Unemployment rate for graduates Employers’ satisfaction rate (a study will be conducted to determine the baseline rate at project start-up)

Expected medium -term progress The enrolment rate in VTET increases from 8% to 12% for post-college students between 2010 and 2015. The success rate for end- of- cycle examinations increasing from 59.98% in 2010 to 75% in 2015 The success rate at end- of- cycle examinations for girls increases from 7.39% in 2008 to 25% in 2015 The proportion of trained trainers increases from 6.47% to 30% between 2010 and 2015 The proportion of female trainers trained increases from 6.9% to 25% between 2010 and 2015 The unemployment rate for graduates drops from 19% in 2008 to 15% in 2015 The employers’ satisfaction rate goes from X % to Y% between 2010 and 2015 Source and method: National Institute of Statistics and MFP/A report on progress towards achievement of the post -primary PDDE /VTET component

Assumptions: Continued political will of the Government to pursue the VTET development process Risks O inadequate resources

allocated to the sub-sector O significant imbalance

between confirmed and contractual trainers

Mitigation strategy:

. O gradual confirmation of

contractual trainers

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Short-Term Results

III. Resources and Activities

Outputs

Beneficiaries

Output Indicators Targeted indicator Value

Assumptions 3.1 Development of training infrastructure

(i) Extension and rehabilitation of existing VTET institutions and procurement of furniture

Extension, rehabilitation and equipping of: Lycée Professionnel Issa Béri (Issa Béri Vocational High School) in Niamey, Maradi Technical high school , CTK (Niamey) and CFPA (Zinder), Maradi UIT

(ii) Construction of a new VTET establishment and procurement of furniture

Construction and equipping of new technical high school and the vocational high school (lycée professionnel) in Diffa

Trainers and pupils/students of beneficiary establishments

Number of classrooms rehabilitated and built Number of workshops and laboratories rehabilitated and built Number of dormitories rehabilitated and built Quantity of furniture provided

The number of classrooms increases from 65 in 2009 to 88 in 2015, including 16 rehabilitated The number of VTET workshops increases from 17 in 2009 to 30 in 2015, including 16 rehabilitated; 3 workshops built and equipped for the Maradi UIT The number of dormitories/refectories increases from 13 in 2009 to 16 in 2015, including 6 rehabilitated All the constructed classrooms, workshops, laboratories and specialized rooms are furnished

3.2 Improvement of quality of training

(i) Procurement of teaching equipment and aids

The equipment for workshops and laboratories is provided, installed and put in service. Textbooks and teaching aids are delivered, and available for use

Trainers and students of beneficiary institutions Teachers and students of two UIT (Maradi and Zinder)

Frequency of practical work done Teaching aids/ students

The rate of practical work increases from 30% to 50% between 2009 and 2014 The ratio of pupils per technical teaching aid reduces from 40% to 20% between 2009 and 2014

(ii) Training of trainers and pedagogic inspectors

The level of practical and teaching skills of the teaching and training personnel is improved

Trainers, Teaching Supervisors (counsellors and inspectors)

Number of trainers, teachers and inspectors trained

All VTET teaching and pedagogic supervision staff have at least undergone pedagogy training/retraining between 2010 and 2015

(iii) Development of skills to prepare curricula

Qualified human resources for curricula are available The curricula revised and developed are introduced into the training course

Pedagogic inspectors, teachers and professionals Students of public and private vocational and technical education institutions

Number of persons trained Developed and revised curricula being applied

The number of persons qualified in curriculum design increases from 1 to 20 between 2010 and 2013 Revised and new curricula are applied as from the 2014-2015 academic year

Assumptions Implementation of the various project activities on schedule Risk Delays in provision of counterpart funds by the Government Mitigation strategy: Payment of part of the counterpart funds at project start-up.

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3.3 Development of institutional capacities (i) Capacity building for the

MFP/A, the Higher VTET Council and training institutions

MFPT senior staff are trained, and ensure management, implementation, planning, monitoring and evaluation of the project The MFPT and Higher VTET Council are equipped with computers and office furniture, and ensure execution of the project The MFPT has a VTET strategy and development master plan consistent with its sector policy The officials of training centres and trainers are trained, and in their daily work take into account gender, strategic planning and results-based management

Officers of the EPD, DSI, DRMF and DGEFPT Secretariat-General, EPD, DIE, DRMF, DEFPT and the Permanent Secretariat of the Higher Council MFPT Beneficiary institutions of the project

Number of officers trained Number of computer and reproduction equipment sets provided Frequency of production Master plan available Quarterly activity Report

8 officers trained in planning, monitoring and evaluation between 2010 and 2015 6 computer and reproduction equipment sets provided between 2010 and 2015 Master plan available as from March 2011 Quarterly activity reports address gender concerns, results and planning as from 2012

(ii) Support for development of a VTET gender strategy, and implementation of a pilot action resulting from the strategy

A VTET gender strategy is available The number of girls in the industrial branches is increased

MFP/A, students’ parents, training centres, and female population of school age

Male/female ratio in the industrial branches

The rate of girls in the industrial branches of the institution concerned with the Project increases from 7.19 % in 2009 to 25% in 2015

(iii) Information and sensitization on STI/HIV/AIDS in vocational and technical education institutions

Students and teachers are informed and sensitized on STI/HIV/AIDS

Students and staff of institutions

Number of persons informed and sensitized

The persons informed and sensitized between 2010 and 2015 are estimated at 7,000

(iv) Malaria prevention activities in boarding schools through procurement/use of insecticide –treated mosquito nets and spraying of buildings

The boarders in the institutions concerned benefit from prevention against malaria

Pupils / students in boarding institutions

Number of insecticide- treated mosquito nets provided to the pupils students Number of sprayings of the buildings

All pupils and students of institutions covered by the project sleep under insecticide–treated mosquito nets The buildings, particularly residential, are sprayed at least twice per year

(v) Support for project implementation and monitoring

The project activities are implemented on schedule

Staff of the programme implementation office

Project implementation rate The project implementation rate is 100% in 2016

Total project: UA 26.91 M and ADF : UA 25.5 M 22 million

Source and method : ( MFP/A Reports and statistical yearbooks)

Assumptions: Good coordination and monitoring of project activities by the executing agency Risks: Weak coordination capacities and limited capacities of the executing agency Mitigation Strategy: Capacity building for the executing agency

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Project Implementation Schedule

For the first 18 months: refer to quarterly distribution

ACTIVITIES

Board Presentation and approval

Signing of Loan and Guarantee Agreements

Effectiveness

Fulfillment of Disbursement Conditions

WORKS

Invitation to Bid

Evaluation of Bids

Signing of Contracts

Works Execution

GOODS

Invitation to Bid

Evaluation of Bids

Signing of Contracts

Delivery of Supplies

SERVICES Training

Project Completion

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REPORT AND RECOMMENDATION OF THE MANAGEMENT OF THE ADB GROUP TO THE BOARD OF DIRECTORS CONCERNING A PROPOSED LOA N AND GRANT

TO THE REPUBLIC OF NIGER TO FINANCE THE VOCATIONAL AND TECHNICAL EDUCATION DEVELOPMENT SUPPORT PROJECT

Management submits the following report and recommendation relating to a loan of UA 07.87 million and a grant of UA 17.63 million to the Republic of Niger, to finance the Vocational and Technical Education Development Support Project in Niger. I Strategic Orientation and Justification 1.1 Project linkages with Country Strategy and Objectives 1.1.1 The envisaged project is consistent with the country’s development programme as defined in the Niger Government’s Accelerated Development and Poverty Reduction Strategy (ADPRS) 2008-2012 , and with the Bank’s country support strategy (CSP 2005-2009 extended to 2011). It is also included in the Bank’s 2009 lending programme extended to 2010, as a result of political strife culminating in the military coup of February 2010. Increasing economic and social output through a training mechanism tailored to the formal and informal productive sector needs is one of the key measures of the ADPRS. A strong and employment-generating growth and access to quality social services are two of the ADPRS pillars on which the VTET component of the Ten-year Post-Primary Education Development Programme (PDDE) is centred. In March 2006, a vocational and technical education sector policy was adopted to demonstrate the government’s resolve to develop VTET. 1.1.2 Rural development through the mobilization of water resources and development of socio-economic infrastructure are the two pillars of the CSP. Skill development is one of the priority areas defined in the Bank’s medium-term strategy. The proposed project is in line with the second priority of the CSP, and supports the objectives of the ADPRS and post-primary PDDE. It is also consistent with the Bank’s strategy for higher education, science and technology. This report has been updated in line with Presidential Instruction No. 031 of 20 October 2010, concerning the continuity of operations and relations with regional member countries run by de facto governments. 1.2 Justification for Bank Intervention 1.2.1 In Niger, the unemployment rate was about 18% in 2008 according to statistics provided by the National Employment Promotion Agency (ANPE). However, the country has potential employment pools which can be explored to help reduce youth unemployment. In 2007, 55% of job offers received by the ANPE came from the industrial sector, namely mining (19%), manufacturing (4%), construction and public works (21%), transport and communication (12%). The mining sector (uranium), public works, as well as the new information and communication technologies remain the most solicited by the labor market. However, the country lacks the skilled labor to meet the needs of the said sectors. It is therefore necessary to strongly support the VTET mechanism by contributing to the training of the intermediate and senior technical staff required by the country’s economy. The envisaged project will help to better address labor market needs.

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1.2.2 The Bank has been operating for over twenty years in Niger’s education/training sector. Its advantage stems from the experience acquired through the various operations it has financed. In addition, the Bank is currently the only partner which is committed to providing resources to meet VTET needs in the second cycle of secondary education and the first cycle of higher education, following the Round Table organized by the Government of Niger in November 2008. Supporting these two levels concurrently will reinforce the Bank’s comparative advantage as it will consolidate the achievements of previous operations in the sector through the Education I and II projects. 1.3 Aid Coordination 1.3.1 The key operations of partners in the education/training sector are summarized in the following table:

Table 1.1 Donor Interventions in the Education Sector

Scale

Sector or sub-sector*

GDP Exports Labor

Education % % %

Stakeholders – Annual Public Expenditure (average for 2010-2012)

Government Donors

%

UA [UA] [UA]

100% 7.73% 92.27% ADB*** 28.07%

Japan 5.38%

HIPC 18.77%

EDF 2.82%

Luxembourg 3.71%

IDB 15.05%

MCA (USA) 7.64%

Denmark 3.45%

Switzerland 2,06%

Catalytic Fund

(IDA) 3.77%

AFD 1.11%

UNESCO 0.45%

Donor coordination level

Existence of thematic working groups Yes

Existence of overall sector programme Yes

ADB role in donor coordination *** Member

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1.3.2 Various technical and financial partners, particularly the European Union, the French Development Agency and the Swiss Co-operation Agency have supported the VTET through vocational and technical training projects in Niger. These operations focus mainly on initial vocational training, apprenticeship and the placement of graduates from the training system with limited impact. The World Bank and the Islamic Development Bank intend to intervene in skills development and in the functional literacy programme respectively for an amount of USD 30 million each. The Luxembourg Co-operation Agency and the government of Niger are finalizing a cooperation agreement for the implementation of a project to support the national programme for vocational and technical training and placement of graduates for a financial package of EUR 22.9 million. 1.3.3 The present Bank operation also seeks to rally other development partners, particularly the Luxembourg Co-operation Agency, around vocational and technical training. Indeed, Lux Development will intervene in the non-formal vocational training sector, while the Bank will intervene at the formal post-college level. Lastly, this operation supplements the Bank’s basic education project, Education II, ongoing in the country. II. Project Description 2.1 Project Components 2.1.1 The country’s development objective is to improve the living conditions of the population. The project objective is to increase the population’s access to quality vocational and technical education and training. This objective will be achieved through the following interventions: (i) extension and rehabilitation of existing VTET institutions and construction of a new VTET college at Diffa; (ii) procurement of furniture, teaching equipment and aids; (iii) training of trainers, pedagogic inspectors; (iv) introduction new curricula, as well as revision of existing curricula; and (v) capacity building for the Ministry responsible for VTET and training structures through a participatory process in the regions targeted by the project (Niamey, Maradi, Zinder and Diffa).

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2.1.2 To achieve the set goals, the proposed project will finance a number of activities divided into four components, summed up in the table below:

Table 2.1 Project Components

# Component Cost Estimate (UA million)

Description of Component

1 Development of training infrastructure

11.81

� Rehabilitation and extension of 4 existing VTET institutions (Issa Béri Vocational High School, Maradi Technical School, Zinder CFPA, and Niamey CTK) and the Zinder UIT.

Architectural and technical studies Bureau for technical control relating to insurance or the ten-year

guarantee � Construction of a new technology college in Diffa and 3 workshops

in the Maradi UIT � Works inspection and supervision � Procurement of school furniture

2 Improvement of the training supply and quality 11.31

� Continuing training of trainers of which 25% women � Strengthening of pedagogic supervision � Procurement of teaching equipment and aids for the targeted

institutions and two university institutes of technology (UIT) � Training in curriculum development � Revision and development of curricula

3 Development of institutional capacities

1.70

� Training in strategic planning, results-based management and gender mainstreaming for MFPT officers and beneficiary training and education institutions

� Providing computer equipment to the permanent secretariat of the Higher VTET Council and 4 departments involved in the project implementation.

� Study on gender mainstreaming and implementation of a pilot project to promote girls’ enrolment in industrial courses

� Formulation of VTET Master plan and strategy � Information and sensitization campaign on STI, HIV/ AIDS and

malaria control activities in VTET and 150 literacy and informal education centres in three regions concerned by the project (Maradi, Zinder and Diffa)

� Procurement of vehicles, computer equipment, office furniture and financial and accounting management software

� Payment of experts assisting MFP/A in project implementation 4 Support for project

implementation

2.08

� Training members of the project management team � Monitoring project activities in the field (supervision and

environmental monitoring) � Logistic costs � Miscellaneous operating costs

2.2 Technical Options and Alternatives Explored 2.2.1 The project formulation took into account several alternatives as indicated in Table 2.2. The Bank could have directed its support to private sector economic operators to facilitate on-the-job training of technicians and intermediate staff in companies as a short-term alternative.

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However, the industrial environment in Niger is not sufficiently developed to train skilled workers in all the technical fields and on the scale required to offset the skills shortage in the medium and long term. Furthermore, companies do not have a comprehensive and coherent vision of the training of human resources on the national level. Similarly, private training institutions do not have the capacity to satisfy the current demand for skilled labour or address economic growth prospects. Consequently, the enhancement and strengthening of local capacities that meet international standards constitute the best possible long-term solution. The involvement of the Government and its development partners is thus of vital importance in technical and vocational education.

2.2.2 The technical solution adopted has the merit of training quality Niger technical labour to support the emerging industrial sectors and the country’s economic growth. The industrial sectors targeted by the project are in particular: (i) civil engineering; (ii) electronic and electro-technical engineering; (iii) mechanical engineering, and (iv) petro-chemical engineering. Development of the curricula of these branches will take into account the environmental aspect, which will be included in all the training curricula. The learning of English and new information and communication technologies (NICT) will also be included.

Table 2.2 Project alternatives explored and reasons for rejecting them

Alternatives explored Brief description Reasons for rejection

In-house training Encourage and support companies to train the labour they need

� Niger’s industrial fabric is not sufficiently developed to provide vocational and technical training on the envisaged scale;

� Would not immediately provide the required skills in all the sectors of the economy or ensure skills diversification in the medium and long term;

� Will not allow for strategic and coherent development of a national human resources training policy

Training abroad Focus on "soft" solutions rather than invest in infrastructure. Grant scholarships to youths to study abroad.

� The unit cost of training abroad would be extremely high, and trainees may refuse to return home.

Training in local private institutions

Encourage and support local private institutions to train workers and technicians

� Existing private institutions lack the quantitative, qualitative and financial capacity to satisfy current demand and even less so, address economic growth prospects.

2.2.3 The conceptual framework of the training mechanism and its interaction with the work environment is illustrated in Diagram 1 following.

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Diagram 1 Conceptual framework of the interaction between VTET and the job market

2.2.4 At the end of their initial training, graduates from VTET institutions (technical and vocational high schools, as well as technical and vocational training centres) will be able to directly enter the labour market or undergo higher level training in a university institute of technology (UIT). Similarly, companies will benefit from continuing training or refresher courses for their employees in the institutions, which will be provided with more efficient training facilities as a result of support from the project.

2.2.5 The higher level technology institutes carry out academic training of senior technicians. The UIT offer a two–year programme to prepare qualified secondary school diploma holders for the University diploma in technology (Diplome Universitaire de technologie - DUT) in industrial and tertiary fields. This final first-cycle degree level qualification provides access to the job market. Training at the first degree and Masters levels is envisaged under the Licence Master Doctorat (LMD) programme to be instituted. Two UITs (Maradi and Zinder) out of the three that exist will receive support under the project, in the form of infrastructure, equipment and training.

2.3 Project Type

The proposed operation is a sector project financed by an ADF loan and grant. This type of operation is considered most appropriate for the project in question on account of the type of sector issues to be addressed and activities to be financed. A programme approach had been considered during project identification and preparation. However, long-term commitment in a programme approach, which is the instrument preferred and recommended in the ADPRS, was not adopted because of lack of adequate resources and capacities to implement the programme. 2.4 Project Cost and Financing Arrangements 2.4.1 The total project cost is estimated at UA 26.91 million, net of taxes, with provisions for implementation contingencies and price escalation representing 3.47% and 23.84%, respectively, of the baseline cost. The estimate is based on the updated unit prices of works in the competitive bidding for the ongoing Education Project II and the prices of equipment and materials delivered by various suppliers, as well as an estimate of the required services, plus inflation (at the country

VTET institutions

UIT

Continuing Training

Initial Training

Initial Training

Higher level training

Job Market

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and international level). Tables 2.3 and 2.4 ahead show the detailed project cost by component and by expenditure category.

Table 2.3

Cost Estimates by Component Components XOF Million UA Million % in Foreign Currency

F.E. L.C. Total F.E. L.C. Total Development of training infrastructure 4 678.4 2 332.6 7 011.0 6.3 3.1 9.4 30% Improvement of training supply and quality 5 776.5 642.1 6 418.6 7.7 0.9 8.6 36% Enhancement of institutional capacities

428.0 626.9 1 054.9 0.6 0.8 1.4 3% Support for project implementation and monitoring

403.0 942.0 1 345.0 0.5 1.3 1.8 3% Total base cost

11 286.0 4 543.6 15 829.5 15.1 6.1 21.2 71%

Contingency Provision 399.4 162.5 561.9 0.5 0.2 0.8 3% Provision for price escalation 3 111.4 632.9 3 744.3 4.2 0.8 5.0 20% Total Project Cost

14 796.7 5 338.9 20 135.6 19.8 7.1 26.9 73%

Note: The exchange rates used are indicated in page (i) of the rapport

Table 2.4 Project Cost by Expenditure Category

Categories XOF Million UA Million %

F.E. L.C. Total F.E. L.C. Total F.E.

Goods 5 451.3 295.9 5 747.2 7.3 0.4 7.7 34%

Works 4 236.0 1 815.4 6 051.5 5.7 2.4 8.1 27%

Services 988.5 1 179.5 2 168.0 1.3 1.6 2.9 6%

Operating costs 610.1 1 252.7 1 862.8 0.8 1.7 2.5 4%

Total base cost 11 286.0 4 543.6 15 829.5 15.1 6.1 21.2 71%

Contingency Provision 399.4 162.5 561.9 0.5 0.2 0.8 3%

Provision for price escalation 3 111.4 632.9 3 744.3 4.2 0.8 5.0 20%

Total Project Cost 14 796.7 5 338.9 20 135.6 19.8 7.1 26.9 73%

2.4.2 The project will be financed by the Government of Niger and the Bank to the tune of 6% and 94% respectively of its total cost. The Bank will extend a loan and a grant for a cumulative amount of UA 25.5 million. The ADF financing will cover foreign exchange as well as local currency costs. In accordance with the policy on costs eligible for Bank Group financing, Niger is entitled to up to 100% ADF financing. However, the Government has opted to contribute to the project financing to show ownership and lay bases for sustainability of future outputs of the project. The national counterpart, estimated at UA 1.41 million, will mainly cover the remuneration of civil servants participating in the project and various operating costs.

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Table 2.5

Sources of Financing

Sources XOF Million

UA Million % of

F.E. L.C. Total F.E. L.C. Total total

ADF 14 796.7 4 637.2 19 010.6 19.8 6.2 25.4 94%

GVT 0.0 1 104.5 1 104.5 0.0 1.5 1.5 6%

Total 11 735.3 8 379.8 20 115.2 19.8 7.7 26.9 100%

2.4.3 The project expenditure will cover the 2011-2016 period according to the estimated breakdown per year shown in Table 2.6 below:

Table 2.6

Expenditure Schedule by Component

Components UA Million

2011 2012 2013 2014 2015 2016

Total

Development of training infrastructure 1.17 3.00 4.71 3.55 -0.49

0.00 11.94

Improvement of quality of training 0.00 0.30 2.45 4.27 4.00

0.24 11.26

Enhancement of institutional capacities 0.09 0.11 0.11 0.10 0.08 1.15 1.63

Support for project execution and monitoring 0.28 0.32 0.44 0.36 0.18 0.49 2.07

Total Project Cost 1.53 3.73 7.72 8.28 3.76 1.88 26.91

2.5 Project Area and Beneficiaries 2.5.1 The project concerns the country’s entire population. In particular, it will be implemented in 4 out of the country’s 8 regions, namely Niamey, Diffa, Maradi and Zinder, which have a total population of about 7.3 million inhabitants, comprising 3.7 million women and 52% youth below 15 years old. With the exception of Diffa region where a new college will be built, the other activities will consist in improving existing training facilities by providing them with appropriate infrastructure and equipment for modern vocational and technical education and training. The choice of Diffa region was based on the country’s new economic opportunities, particularly the discovery of oil deposits in the region and the construction of a refinery in Zinder. Given that the Bank’s operation will concern post-college education and the first cycle of higher education, the training level of existing structures guided the selection of the other regions. The desire of the Government of Niger to balance and revitalize regional development has also been taken into account in selecting these regions. 2.5.2 The beneficiaries targeted by the project are first cycle secondary school students, who are about 185 000 in number, and students preparing for the BEP and CAP examinations, estimated at approximately 1 800. In addition to these numbers, there will be about 500 products of technical, vocational and scientific high schools each year in view of the support that will be provided to the UIT of Maradi and Zinder. Companies operating in the industrial sectors will benefit in the medium and long term from more qualified and skilled labour. In this way, the project will contribute to economic growth and improvement of the quality of life of the population.

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2.6 Participatory Approach to Project Identification, Design and Implementation 2.6.1 This project has been based on the guidelines laid down for the vocational and technical training component of the first Ten-Year Post-primary Education Development Programme (PDDE), formulated using a participatory approach in 2008. The various programme activities were defined through a participatory process with the close involvement of the key stakeholders (Ministries and training establishments), as well as sector and sub-sector stakeholders. 2.6.2 The development partners (WB, EU, UNDP, AFD, CL), civil society (Nigetech, Swisscontact, Association of Women Technicians, Association of Private VTET Institutions), the private sector (Areva, Nigerlait, Soraz, CNPC/DADANG, GWDC, and Chamber of Commerce) and the elected representatives and political leaders of the council areas concerned with the project were also consulted during all the phases of project formulation to ensure that their views are taken into account in the project preparation phase. Discussions with the National Employment Promotion Agency (ANPE) and potential employers also helped to determine the sectors that will be developed in the training curricula to be taught in VTET institutions, to enable them to adapt to labour market needs. 2.7 Bank Group Experience and Lessons Learnt in Project Design

2.7.1 From the implementation of the operations, as well as the supervision and completion reports of the three operations of the sector (a pedagogical and technical study on improving the teaching of sciences in secondary schools and the two projects, namely Education I and II), the following key lessons may be learned: (i) the importance of maintaining only very few conditions that are essential for proper implementation of the project; (ii) the need to avoid delegating project supervision to private agencies through direct negotiation without verifying their real management capacities beforehand; (iii) reinforcement of the preventive and curative maintenance mechanism as guarantee for durability of the infrastructure, furniture and school facilities; and (iv) need to conduct mid-term reviews to draw lessons on good implementation practices and make recommendations to mitigate the constraints encountered.

2.7.2 These lessons were taken into account in the project design. They point to the need to budget funds for the maintenance of school infrastructure and facilities at the central and local levels. They also underscore the importance of timely release of national counterpart funds for project implementation. The five-year VTET modernization programme, on which the present operation is based, took into account the issue of maintenance, to be financed by the national budget. As a condition of the loan and of the grant, the Government is required to transmit to ADF each year, the status of implementation of the government budget allocated for the functioning and maintenance of the infrastructure and equipment of the establishment benefiting from the project. With regard to the national counterpart, an estimate was made based on the country’s actual capacity. The project will not use the delegated contracting authority system; rather, there will be a mid-term review to assess the status of the project and take remedial measures as necessary.

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2.8 Key Performance Indicators

2.8.1 The project formulation process has helped to identify indicators to for measuring progress towards achieving project outcomes, namely: (i) rate of the pupils enrolled in the VTET, and the percentage of girls; (ii) rate of success in official examinations; (iii) girls/boys ratio in the industrial branches; (iv) number of curricula revised and developed; (v) number of Department officials trained; (vi) number of facilities put in place; (vii) number of teachers and trainers trained, with the percentage of women; (viii) percentage of graduates who have found jobs; (ix) employer satisfaction rate; and (x) frequency of production of statistical yearbooks by the Ministry responsible for VTET.

2.8.2 A simple and suitable monitoring and evaluation (M&E) system will be put in place to ensure effective monitoring of activities. It will be financed from project resources. The monitoring tools (statistical yearbooks of MFP/A and INS, quarterly implementation reports, and semi-annual supervision) will help to measure the progress made in the sub-sector and project areas.

2.8.3 M & E responsibilities will be divided at two levels. At the technical level, the Department of Statistics and Information Technology of the MFP/A will be responsible for consolidating the required data and analyzing the various indicators provided by the beneficiaries and the project. At the institutional level, the MFP/A and ADF will monitor progress in implementation, and evaluate outputs on a quarterly and annual basis. Additional data will be obtained from consultations of beneficiaries, surveys and audits that will be conducted annually. A mid-term review will take place 30 months after project start-up to evaluate progress and determine measures to be taken to obtain the desired results. III. Project Feasibility 3.1 Economic and Financial Performance 3.1.1 The economic performance indicator adopted is the economic rate of return (ERR) calculated on the basis of the “no project” or “with project” method. The economic cost was calculated based on capital cost net of taxes, amounting to XOF 15.7 million, and a wage coefficient of 0.3 was applied to the works, 0.15 to services and 0.12 to goods and operating costs (education expenditure, operating costs of training establishments, and social assistance). 3.1.2 On the basis of the calculations made, the ERR is estimated over a 20-year period at 14% with an economic NPV of XOF 4.27 million. The calculation details, shown in Annex B.6. The results show that the project is economically viable. A conversion factor of 0.9 has been applied to the capital cost of the project. 3.1.3 The economic benefits of the project are: (i) increased number of students with access to VTET for the population, through the increased intake capacity of the four existing major training structures and the creation of a new institution; and (ii) reduction of the VTET drop-out rate, which will help to address labour market demand in terms of quantity and quality, and in the long run reduce the unit cost of training. The project will generate a number of direct and indirect jobs

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when completed. Civil works will benefit the local micro-enterprises. Furthermore, the project will contribute to the revitalization of industrial activities by training qualified and skilled labour. 3.2 Environmental and Social Impact 3.2.1 In accordance with Bank guidelines on the environment, this project is classified in category 2. It is a VTET development and modernization project. It consists in rehabilitating 4 existing institutions and building a new institution in the project areas, namely: Niamey, Zinder, Maradi and Diffa. The destruction of some local species of acacia and encroachment on nearby agricultural and pastoral land are impacts that will be generated by the construction of a new technological high school in Diffa. In this locality and the three others, the use of school infrastructure (buildings, workshops, etc.) will entail solid, liquid and gaseous wastes, requiring an appropriate control and monitoring mechanism. 3.2.2 To that end, a project environmental and social management plan (ESMP) has been prepared, and its summary will be published on the Bank Website one month prior to project approval by the Board, in accordance with the Bank’s environmental and social policy. Its implementation will seek to ensure the mainstreaming of environmental and social dimensions into the project design, implementation, and monitoring and evaluation. The environmental component of the ESMP comprises a series of technical, monitoring and evaluation measures, capacity building activities, as well as institutional measures to be implemented before, during and after the works. The replanting of fast-growth species, stockbreeding in boarding schools, design of structures taking into account climatic variability, establishment of a programme to collect, treat, recycle and eliminate waste, as well as information and sensitization campaigns are measures under the ESMP to mitigate the negative impacts. These measures will be implemented by the contractors and direct beneficiaries of the project, and the project will be monitored and evaluated by the National Environmental Assessment Office. There is provision for the cost of this activity under the project.

3.3 Climate Change

3.3.1 Niger, a semi-arid country with tropical climate (average annual rainfall of 350 mm), faces many serious environmental problems, in particular climate variability and change. The project will be implemented within a special environmental context marked by increasing rainfall shortage and episodic floods, as was the case in 2009 with the historic floods in Agadez, which is an extremely arid area.

3.3.2 To take into account climate change, a sound analysis of the climate situation of the project sites will be conducted based on available data, prior to construction of infrastructures. Such an approach will help to pre-empt the potential impacts of climatic change by designing structures adapted to flood and drought risks and the local climatic conditions.

3.4 Gender

3.4.1 Gender disparities in the VTET sector depend partly on the disciplines. Out of a student population of 8 551 in public institutions, there were 4 250 girls in 2007-2008, representing a rate of 49.7%. This proportion varies and drops to merely 3% in the industrial disciplines. There are various reasons for the poor representation of girls in the industrial disciplines. Upstream, there

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is the influence of parents in educational orientation of children, particularly girls, to fields considered "feminine", the lack of information on the choice of disciplines and the training offered by the centres.

3.4.2 This project will help to increase the number of VTET- trained women by facilitating access for girls to the industrial disciplines. The recommended gender mainstreaming strategies concern improving the training offered in VTET centres by providing appropriate infrastructures for boys and girls. A gender and VTET strategy will also be developed to increase the number of women trained in the industrial disciplines (incentive measures to facilitate access for girls to the industrial disciplines, sensitization activities, etc.), and a pilot activity will be implemented as part of the strategy.

3.5 Social Sector

3.5.1 The project will contribute to the Government’s efforts to achieve the Millennium Development Goals (MDG) in terms of poverty reduction, improvement of access to education, and reduction of gender disparities. The increase in the number of VTET graduates in the country’s economy will have a positive socio-economic impact on the incidence of poverty at the national level and in households. Indeed, poverty is less severe among household heads having benefited from technical and vocational education compared to the other types of education which account for 96% of the population. By broadening access to VTET and improving the quality of training services, 2000 more students will gain access to VTET with a reduction in gender disparities in accordance with the rate targeted by the project. 3.5.2 Improvement of the working conditions of teachers estimated at 344 in the project area and the learning conditions of students will impact positively on school results, as well as enhance their technical and human skills. The chances of employment of the young graduates will be increased as they will find employment more easily or will be self-employed. To minimize the negative impact of HIV/AIDS (0.7% prevalence rate in 2006) and malaria (mortality rate of 2.7% in the country) in institutions, sensitization campaigns on HIV/AIDS and STI will be conducted. Sanitation measures (draining, spraying) will be implemented, and insecticide-treated mosquito nets will be provided to boarding students in institutions covered by the project. 3.6 Forced Resettlement The project will not entail expropriation or relocation of people. Rehabilitation and extension works will be carried out on already existing sites, and the construction of a new high school on an unoccupied reserved State land will not require any displacement of people. IV. Implementation 4.1 Implementation Arrangements 4.1.1 Executing Agency: The executing agency of the project (General Secretariat of the Ministry) will be designated by a Ministerial decree after approval of the project by the Board, in its capacity as the Government’s executing agency for the project. The executing agency will be responsible for: (i) ensuring the technical and financial management of the project, including

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monitoring and evaluation (M&E); and (ii) supervising and coordinating the execution of works, the procurement of equipment and materials for workshops and laboratories, as well as training and strengthening of institutional capacities. The actual supervision of the implementation of project activities has been entrusted to five departments of the MFP/A under the supervision of the General Secretariat, namely: (i) the Department of Studies and Programming (DEP), which will be responsible for planning, as well as monitoring and evaluation; (ii) the Department of Financial and Material Resources (DRFM), which will be responsible for budgetary planning, as well as financial and accounting management; (iii) the Department of Statistics and Information Technology (DSI), which will be responsible for collecting and processing the data required for measuring the indicators; (iv) the Vocational and Technical Education and Training Directorate (DGEFPT) which will ensure implementation of activities relating to capacity building and training curricula; and (v) the Infrastructure and Equipment Department (DIE), which will put in place the required infrastructure and equipment. These departments will be supported in their tasks by experts to be recruited through competition at the region level, namely a procurement expert, an infrastructure expert, a financial management expert, a training engineering expert, a monitoring and evaluation expert, and a project officer under the national project coordinator to reinforce the day-to-day supervision and coordination of officers of the Ministry towards achieving the project objectives. This support within the MFP/A was deemed necessary because of the recent creation of the Ministry and staff who will not be able to implement the project on their own. The current method will be evaluated during the mid-term review. 4.1.2 Steering and coordination of project activities: Considering the project type which covers various fields, a Project Steering Committee (PSC) will be set up comprising: the Ministry of Economic Affairs and Finance (Chairperson of the PSC), the Ministry of National Education, the Ministry of Vocational and Technical Training (Secretariat of the PSC), the Ministry of Higher Education, the Ministry of Advancement of Women, the Higher Council of Vocational and Technical Education and Training, the representative of Beneficiaries and the representative of the Chamber of Commerce. Each structure will be represented within the Committee by a single person only. The Steering Committee will meet in ordinary session two (02) times each year and in extraordinary session, as and when necessary. Depending on the issues to be considered, the PSC may call on the necessary structures and/or skills. 4.1.3 Implementation of works: Civil works will be undertaken by the construction firms. The architectural and technical studies of the infrastructures to be constructed as well as the execution of works will be supervised by the DEP in consultation with the DEFPT, which will only ensure conformity of the various buildings to be constructed to the standards and norms. The technical and administrative management of the works will be monitored by the DEP. The services of an infrastructure expert will be procured for the period of works execution, to support the DIE in its tasks. A high-level building technician will be recruited and be based in Diffa for the day-to-day supervision and control of service providers involved in the construction of the high school, and will submit a progress report to the DIE each month. 4.1.4 Implementation of the other activities: The other project activities will be implemented by DEFPT, except for the operation component which will be implemented by the General Secretariat. The DEFPT will coordinate and supervise implementation of activities relating to the training of trainers, the reinforcement of pedagogic supervision, and the revision and development of curricula. In consultation with the direct beneficiaries of the project, it will

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verify and approve the technical specifications of the equipment, materials and furniture to be procured for the institutions concerned with the project. 4.1.5 Procurement: The Bank’s financing will be used for implementation of the works and procurement of goods and services. All the works and consultancy services financed from Bank resources will be procured in accordance with the May 2008 Edition of its Rules of procedure for the procurement of goods and works or, as the case may be, the May 2008 Edition of its Rules of procedure for the use of consultants, using the standard bidding documents of the Bank. The General Secretariat of the Ministry, with the support of a procurement expert responsible for the procurement of goods, works, service contracts, consultancy services, training and others, as described in detail in Annex B5. The resources, capacities, expertise and experience of the General Secretariat are presented in detail in Annex B.5. The procurement plan is presented in Annex B.5. 4.1.6 Review Procedure: All bidding documents and requests for bids concerning the procurement of goods, works and services will be subject to a pre-review. 4.1.7 Disbursement arrangements: All the disbursement methods specified in the Disbursement Manual may be used. The following accounts will be opened by the Government of Niger: (i) two accounts in a bank acceptable to ADF, to hold, respectively: (a) the ADF loan resources and (b) the ADF grant resources; and (ii) a local currency account at the Treasury and Public Accounting Directorate into which the counterpart funds will be paid. The opening of these accounts is a condition for the first disbursement of the grant and of the loan. 4.1.8 Auditing of accounts: An accounting firm will set up an administrative, financial and accounting management system compatible with the project components. It will also prepare a manual of administrative, financial and accounting procedures, as well as terms of procurement, monitoring and evaluation, which will be submitted for Bank approval within six months following the first disbursement of the loan. The project financial management expert will be required to prepare financial and accounting statements in accordance with international standards and generally accepted accounting practices. The Borrower and the grant recipient will ensure that annual project audits are conducted by external auditors recruited on a competitive basis. It will also ensure that the recommendations ensuing from the audits are implemented.

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4.2 Monitoring of Project Activities Period Stage Monitoring Activities/ Feedback

January 2011 Signing of the Loan and Grant Agreement Invitation letter to the Borrower and the Recipient (Bank)

January 2011 General information on procurements Publication of the Information Note in UN Development Business (Bank)

May-Dec 2011 Architectural and technical studies and preparation of BDs for works

Recruitment of firm and conduct of studies

January-June 2012

Procurement of construction and rehabilitation works

Approval of BDs and bid evaluation reports/(Bank) Competitive bidding and evaluation of bids (MFP/A) Signing of contracts (MFP/A)

July 2012-June 2014

Rehabilitation and construction of infrastructure

Execution of works (contractors) Works inspection and supervision (Consulting firm) Project supervision (Bank)

2013 - 2014 Procurement of materials and equipment for workshops and laboratories

Approval of BDs and bid evaluation reports/(Bank) Competitive bidding and evaluation of bids (MFP/A) Signing of contracts (MFP/A)

2014-2015 Delivery of materials and equipment for laboratories and workshops

Acceptance of materials and equipment (MFP/A, training institutions)

June 2016 Project completion Preparation of completion report by the Borrower (MFP/A)

July 2016 Project completion Report Project completion report preparation Mission (Bank)

4.3 Governance 4.3.1 The Bank's experience in Niger has shown that the governance practices and control systems in place are satisfactory. For each project financed, the procurement procedures in force at the Bank as well as the management of the contracts have been observed by the project implementation units. 4.3.2 The supervision and audit reports mention some minor irregularities. In Niger, the control mechanism put in place (Public Procurement Regulatory Agency and Public Procurement Code and its implementing instruments, 2007 edition) is used as a reference and tool for settling conflicts in procurement and contracts management. For this project, the inspection and audit system usually used by the Bank will remain proactive throughout the period of implementation of the project; this consists of the procurement procedures, the review of procurement documents, the supervision missions, disbursement procedures, and external auditing of project accounts. In addition, an audit report of the project accounts will be submitted to the Bank in accordance with the provisions of the General Conditions applicable to Loan Agreements and the Grant Memorandum of Understanding. 4.4 Sustainability 4.4.1 Several factors will contribute to the sustainability of project outputs. The country’s commitment to the project is reflected at several levels and is illustrated by the inclusion of the project investments in the CSP (2006-2009) and by the strong political will of the authorities of the country to make vocational and technical training an engine of economic growth.

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4.4.2 The sustainability of the project also depends on synergy between industry and the training institutions. The technical solution adopted in formulating the project envisages the establishment of a harmonious and appropriate mechanism between training (initial and continuing) and the actual needs of the economy by involving companies in the preparation and implementation of training curricula. Surveys of employers to collect data to help adapt training to market requirements will be conducted at project start-up, mid-term and completion as part of the follow-up of graduates on the labour market. 4.4.3 The Higher Vocational and Technical Education Council, which was set up in 2008 and installed in April 2009 is also responsible for mobilizing resources, public and private stakeholders, as well as civil society to support the cause of VTET. Public expenditure on vocational and technical training is expected to increase substantially in the future due to the Government’s growing interest in the sector. 4.4.4 Lastly, contributions by companies that have benefited from training, in the form of apprenticeship tax, will increase the financial resources available for technical education and vocational training. Moreover, the foreign companies established in the country have expressed their willingness to contribute to the training of workers that they will need. 4.5 Risk Management 4.5.1 The project is based on the assumption of the political will of the Government of Niger to pursue the human resource development and make VTET an engine of economic growth. It incorporates the aspect of emergence from political crisis in accordance with the transitional road map leading up to presidential elections in 2011. The major risks are: (i) inadequate resources allocated to the VTET sub-sector; (iii) delays by the government in providing counterpart funds; (iii) weak capacity of the executing agency; and (v) imbalance between full-time and contractual teaching staff. 4.5.2 Pursuance of resource mobilization and acceleration of the procedures for providing the required funds to the Ministry will eventually help to mitigate the first risk. As regards the second risk, it will be mitigated through a counterpart contribution mainly in kind. The project intends to limit the risk concerning the weak capacity of the executing agency by providing the latter with a team of experts whose profiles have been defined in the implementation arrangements. 4.5.3 In the longer term, the project could suffer from lack of qualified and confirmed teachers. This risk will be mitigated by the gradual certification of contractual teachers, teacher training and periodic retraining of the teaching staff. To that end, the project comprises a continuing training of trainers component in the technical fields. During appraisal, the Government reassured the Bank of the gradual certification of contractual teachers and the recruitment of qualified trainers. To reduce the aforementioned risk, the Government will, no later than 31 January each year, submit to the ADF the trend of the proportion of full-time teachers in public VTET to facilitate monitoring of the implementation of this measure.

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4.6 Knowledge Development 4.6.1 Through the various VTET stakeholder training and capacity building activities at various levels, the project will contribute to knowledge development. The definition of growth-oriented branches of the economy in Niger and the development of new curricula and training programmes entail detailed analyses of the human resource requirements of the country. Furthermore, the survey to be conducted both on the vocational integration of graduates into the labour market and on employer satisfaction with the performance of graduates of the education system will contribute to better analysis of the adaptation of training to employment in Niger. This knowledge will be used as basis for the improvement of future training courses by the Bank, the Government of Niger, or other countries or development partners. V. Legal Framework 5.1 Legal Instrument The financing instrument used is a loan and a grant to be extended to the Republic of Niger, which is both Borrower and Recipient. 5.2 Conditions for Bank Intervention 5.2.1 Conditions precedent to loan and grant effectiveness

(i) Effectiveness of the loan agreement will be subject to fulfilment by the Borrower of the provisions of Section 12.01 of the General conditions applicable to Loan Agreements and Guarantee Agreements.

(ii) As regards the grant memorandum of understanding, it will become effective in

accordance with the provisions of Section 10.01 of the conditions precedent to effectiveness of memorandums of understanding.

5.2.2 Conditions precedent to first disbursement The first disbursement of the loan and the grant will be subject to fulfillment, by the Borrower and Recipient, of the following conditions to the satisfaction of the Bank:

(i) Provide the ADF with evidence of the opening of two accounts in a bank considered acceptable by the ADF to receive, respectively: (a) the ADF loan resources; (b) the ADF grant resources; (paragraph 4.1.7);

(ii) Provide evidence to ADF of the opening of an account at the Treasury and Public

Accounting Directorate into which the agreed government monetary contribution will be paid (paragraph 4.1.7).

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5.2.3 Other conditions

(i) Provide to ADF, latest within three months following the first disbursement of the loan and grant resources, evidence of the recruitment of the required experts (a project officer, a procurement expert, an infrastructure expert, a financial management expert, a training engineering expert, and a monitoring and evaluation expert) to assist MFP/A in project implementation (paragraph 4.1.1);

(ii) Submit the project administrative, technical and financial procedures manual to the

ADF for approval, not later than six months following the first disbursement of the loan and grant resources (paragraph 4.1.8);

(iii) Provide to ADF, prior to the signing of the contract with the consulting firm hired

to conduct the technical and architectural studies, evidence of allocating land at Diffa (title deed) to the Ministry of Vocational Training and Literacy (MFP/A), for the construction of the technological high school (Lycée technologique);

(iv) Submit to ADF, each year, the implementation status of the State budget allocated

to the operation and maintenance of infrastructure and facilities of the project beneficiary institutions (paragraph 2.7.2); and

(iv) Communicate to ADF, no later than 31 January each year, the trend of the

proportion of full-time teachers in public VTET (paragraph 4.5.3). 5.3 Compliance with Bank Policies This project complies with all applicable Bank policies. It complies with the Bank’s policy concerning the education sector and with the Bank’s strategy on education, science and technology. VI. Recommendations Management recommends that the Board of Directors approve the proposed loan of UA 7.87 million and grant of UA 17.63 million to the Republic of Niger for the purpose and subject to the conditions stipulated in this report.

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ANNEX I

20

Annex II Table of ADB Country Portfolio

Active Portfolio of ADB Group in Niger (In UA million)

Approval

Date Signature

Date Amount Amount Disbursement

Rate Effectiveness

Date Closing

Date Age

Sector Project Name Approved Disbursed Agriculture DIFFA development Project 22-Oct-03 4-Dec-03 15.0 13,9 90,02 16-Feb-04 31-Dec-11 6,5

Agriculture Water Harnessing Project in Dosso and Tillabery 5-Oct-06 11-Dec-06 13.0 5.27 40.56 11-Dec-06 31-Dec-12 3.7

Agriculture Kandadji Programme 29-Oct-08 17-Nov-08 20.0 0.0 0.0 31-Dec-15

Agriculture Kandadji Programme 29-Oct-08 17-Nov-08 20.0 1.14 5.72 31-Dec-15

Total Agriculture 68.0 20.31 29.87 5.2 19-Dec-05 1-Feb-06 22.0 7.00 31.84 1-Feb-08 31-Dec-10 2.6

Transport Tibiri-Dakoro and Madoua-Tahoua Roads 22.0 7.00 31.8 2.6

Total Transport Total 21-Feb-07 20-Apr-07 13.6 6.14 45.2 25-Apr-07 31-Dec-10 3.4 30-Apr-07 0.6 0.0 0.0 … … Water and Sanitation

Rural DWSS Project in 3 regions 14.2 6.14 45.2 3.4

Water and Sanitation Niger PANGIRE 18-Oct-01 23-Nov-01 16.0 15.11 94.76 5-Nov-02 31-Dec-10 7.8

Total Water and Sanitation 18-Oct-01 23-Nov-01 0.4 0.4 100.0 5-Nov-02 31-Dec-

10

Social Health II 3-Dec-03 4-Dec-03 10.0 9.45 94.5 10-Feb-04 31-Dec-10

6.5

Social Health II 3-Dec-03 4-Dec-03 2.0 1.5 73.5 10-Feb-04 31-Dec-10

6.5

Social Education II 28.4 26.46 93.2 7.15

Social Education II 29-Nov-06 11-Dec-06 3.0 1.79 59.77 11-Dec-06 31-Dec-10 3.7

Total Social 3.0 1.79 59.77 3.7 135.6 61.7 45.5 4.4 Multi-sector Decentralization Support Project 22-Sep-04 26-Oct-04 1.2 0.1 7.4 … 31-Dec-11

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Total Multi-sector 24-Sep-03 22-Apr-04 3.3 n.s. 24-May-05 5.3

27-Oct-06 11-Dec-06 12.7 11.6 91.4 11-Dec-06 31-Dec-10 4

TOTAL NATIONAL PROJECTS 17.2 11.7 68.02 Multinational Invasive Aquatic Plants 152. 8 73.4 48.1 4.3

Multinational Niger Basin Silting 22-Oct-03 4-Dec-03 15.0 13.9 90.02 16-Feb-04 31-Dec-11 6,5

Multinational Dori-Tera road Project (grant to Niger) 5-Oct-06 11-Dec-06 13.0 5.27 40.56 11-Dec-06 31-Dec-12 3.7

TOTAL MULTINATIONAL 29-Oct-08 17-Nov-08 20.0 0.0 0.0 31-Dec-

15 Grand Total 29-Oct-08 17-Nov-08 20.0 1.14 5.72 31-Dec-15

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Annex III Key Related Projects financed by the Bank and other Development Partners

STATUS OF EDUCATION SECTOR PROJECTS INCLUDED IN TH E BUDGET ACTAND THE STATE INVESTMENT PROGRAMME 20 10-2012 BY

DONOR AND BY SUB-SECTOR OPERATIONS

BY SUB-SECTOR SOURCE OF

FINANCE TYPE OF FINANCI

NG

PROJECT COST (x1000 CFAF)

IMPLEMENTATION STATUS

PRIMARY AND LITERACY EDUCATION SCHOOLS FOR ALL, PHASE II JAPAN ANR 892 989 Ongoing BASIC EDUCATION SUPPORT PROJECT PHASE II CATALYTIC FUND /IDA ANR 4 000 000 New project, approved

PRIMARY SCHOOL CLASSROOMS CONSTRUCTION PROJECT (MARADI-ZINDER) - JAPAN

JAPAN ANR 4 062 000 Ongoing

FRANCO-ARAB BASIC EDUCATION DEVELOPMENT PROJECT 1 IDB Loan 8 084 100 Ongoing SWISS NON-FORMAL EDUCATION PROJECT (PENF) SWITZERLAND ANR 1 700 000 Completion in 2009 ADB/ADF BASIC EDUCATION DEVELOPMENT PROJECT ADB Loan and

ANR 11 020 040 Ongoing

GIRLS ENROLMENT- MCC MCA (USA) ANR 8 100 000 Ongoing SCHOOL WATER AND SANITATION COMMUNAL INITIATIVES SUPPORT PROJECT IN BOBOYE DEPARTEMENT (SICEAS)

EDF ANR 1 666 886 Ongoing

SCHOOL WATER AND SANITATION COMMUNAL INITIATIVES SUPPORT PROJECT IN BOBOYE DEPARTEMENT (SICEAS)

LUXEMBURG ANR 155 076 Ongoing

SECONDARY EDUCATION

CONSTRUCTION OF SECONDARY SCHOOL CLASSROOMS NIGER TREASURY Own Funds 2 500 000 Completion in 2009

CONSTRUCTION AND EQUIPPING OF MINI-GECs IN RURAL AREAS HIPC HIPC 3 427 578 Ongoing FRANCO-ARAB BASIC EDUCATION DEVELOPMENT PROJECT 2 IDB Loan 7 874 000 Ongoing PROJECT TO IMPROVE THE TEACHING OF MATHEMATICS IN SECONDARY SCHOOLS IN NIGER (SMASSE-NIGER), PHASE II

JAPAN ANR 443 236 Ongoing

VOCATIONAL AND TECHNICAL EDUCATION AND TRAINING

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CONTINUING VOCATIONAL TRAINING SUPPORT PROGRAMME EDF ANR 1 328 772 Ongoing

PROJECT TO SUPPPORT THE VOCATIONAL AND TECHNICAL EDUCATION DEVELOPMENT PROGRAMME

ADB Loan and grant

19,000 000 New project, in the process of approval

HIGHER EDUCATION UNIVERSITY INFRASTRUCTURE PROJECT HIPC HIPC 6 588 997 Ongoing UNIVERSITY INFRASTRUCTURE PROJECT NIGER TREASURY Own Funds 700 000 Ongoing

SOURCE: ME/F/CCD/DGPS, PIE 2010-2012

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ANNEX IV Map of Project Area

This map was prepared by staff of the African Development Bank for use exclusively by readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the ADB Bank Group and its members any judgment concerning the legal status of a territory nor any approval or acceptance of these borders.