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					          ACTIVITY IMPLEMENTATION PROPOSAL

    PROJECT TITLE              Feasibility Study on the Establishment of an ECOWAS Investment Guaranty/Reinsurance Agency



    COUNTRY                    ECOWAS                              REGION COVERED                   ECOWAS


                               Name                                Contact person                   Email, tel, skype
    LEAD APPLICANT
    (if following a request)                                       Prof Lambert N. BAMBA / Mr Alfred lnbamba@ecowas.int /
                               ECOWAS Commission                                                     mbraimah@ecowas.int
                                                                   Braimah


                               Name                                Contact person                   Email, tel, skype

    PARTNER APPLICANTS
    (if following a request)   1-
                               2-
                               3-

                               Name                                Contact person                   Email, tel, skype
    KEY STAKEHOLDERS
    (if following a            1-
    Programme Initiative)
                               2-

                               3-

    RESULT N°1                 TYPE OF ACTIVITY                       WP ACTIVITY NO. 2                 WORK PROGRAMME

                 1                                                             028                                 1

    EXPECTED DURATION          BUDGET LINE                         TOTAL COST (IN EURO)             TYPE OF
    (in month)                                                                                      COMMITMENT

                               1-2                                                                  (Imprest / Specific)

    RECEIPT DATE                                                   INTERNAL GREEN LIGHT
    (if following a request)   28/12/2010                          DATE                              28/12/2010
                                                                   (start to draft the AIP)

                                     Restricted procedure
                                                                                                         Global Price
    CONTRACT PROCEDURES          (Competitive)
                                                                   TYPE OF CONTRACT
    TO BE APPLIED              Negotiated Procedure
                                                                                                         Fee-based
                                     Direct Contract



1
    Refer to the list of activities as detailed in the work programme.
2
    As above.




ACP Business Climate Facility (BizClim)                                                          Manual of Procedures
10 ACP RPR 015                                                                Activity Implementation Proposal (AIP)
                                                                                                             Page | 1
ACP Business Climate Facility (BizClim)                      Manual of Procedures
10 ACP RPR 015                            Activity Implementation Proposal (AIP)
                                                                         Page | 2
 COMMENTS RECEIVED FROM THE EU DELEGATION(S)




     PROGRAMME MANAGER
           COMMENTS
    (Quality of the Proposal
     based on the eligibility
         criteria below)




ACP Business Climate Facility (BizClim)                           Manual of Procedures
10 ACP RPR 015                                 Activity Implementation Proposal (AIP)
                                                                              Page | 1
                   PROJECT OVERVIEW (max 2 pages)

     SUMMARY OF THE ACTION                               Describe the activities and the main project objectives


    A major factor inhibiting the flow of foreign direct investment into the ECOWAS Region is the unstable political environment of its member
    states and their very weak democratic governance structures. This project also seeks to conserve foreign exchange for the region by
    providing reinsurance window for the insurance industry which hitherto places most of the reinsured risks with institutions outside the
    region. More specifically, it will study the feasibility of (i) Extension of Political Risk Insurance to Foreign Direct Investors in ECOWAS; and
    (ii) Provision of Reinsurance Services to insurance Companies in the Region.
    .




        JUSTIFICATION                                  Target beneficiaries, Problems to be addressed and Relevance


    Description of the target                          Governments and the Private Sector operators with interest in ECOWAS (e.g. insurance
    group(s)3 and final                                and re-insurance, investors).
    beneficiaries4 and estimated                       Foreign Direct Investors.
    number [2.4]

                                                       A major factor inhibiting the flow of foreign direct investment into the ECOWAS Region is
                                                       the unstable political environment of its member states and their very weak democratic
                                                       governance structures. Most ECOWAS Member States are still emerging democracies
                                                       and so present very fragile democratic cultures which pose uncertainty for investments. In
                                                       spite of the enormous natural and human endowments of the Region, a wide gap exists
                                                       between the investment resources available in the Region and the level of investment
                                                       required to develop existing resources in order to ensure that ECOWAS citizens derive
                                                       optimal value and enjoy increased welfare from these endowments. This resource gap
                                                       requires that capital flows from capital surplus regions of the world into ECOWAS to bridge
                                                       the deficit. Foreign investment will however flow to the regions where risk can easily be
                                                       mitigated, returns are commensurate to risk and safety of capital can be guaranteed.

    Identification of problems to                      While market return in ECOWAS is comparatively higher than similar emerging markets in
                                                       the world, the risk profile of the Region tends to measure higher as a result of political risk
    be addressed [2.1]
                                                       factors. Beyond the risk of appropriation, which has dropped almost completely, new forms
                                                       of political risks have played up in the last decade to deter FDI from the region the more.
                                                       These risks range from corruption, to communal unrest and disruption to business
                                                       operation, unilateral investment policy changes etc. While the rest of the world is not
                                                       immune to these risks, the establishment of a Regional Investment Guaranty Institution as
                                                       a mitigating measure has bolstered investor confidence on the safety of their investment
                                                       capital and in turn ensure better flow of FDI into those markets.

                                                       This project also seeks to conserve foreign exchange for the region by providing
                                                       reinsurance window for the insurance industry which hitherto places most of the reinsured
                                                       risks with institutions outside the region.



3
     “Target groups” are the groups/entities who will be directly positively affected by the project at the project
     purpose level.
4
     “Final beneficiaries” are those who will benefit from the project in the long term at the level of the society or
     sector at large




ACP Business Climate Facility (BizClim)                                                                          Manual of Procedures
10 ACP RPR 015                                                                                Activity Implementation Proposal (AIP)
                                                                                                                             Page | 2
 How does the Action                      The project will address the problem of political risk (commercial risk) faced by
 contribute to address the                investors by exploring the feasibility of setting up a re-insurance scheme.
 problems identified?

                                          The main risk is that inherent in realizing an ambitious action aimed at setting up a
 Assumptions and Risks [2.7]              regional or continental re-insurance scheme, involving the public sector and private
                                          operators.


 To what extent is the                    Follow-up activities are likely as cross-border investments are COMESA Secretariat and
 intervention likely to lead to           COMESA member States are aware of the need to create a better environment for these
 follow-up activities? [2.8]              activities.

 Is the intervention Consistent,          YES
 Coherent and Complementary
 with other interventions? [2.8]

 Is there a strong support to              A key objective of COMESA is to co-operate in the creation of an enabling environment
 the intervention from key                for foreign, cross-border and domestic investment, including the joint promotion of
 stakeholders? [2.8]                      research and adaptation of science and technology for development.



     CONTEXT OF THE ACTION                Intervention Background

 Describe what previous                   A COMESA Common Investment Area (CCIA) was set up through the adoption of the
 actions, contacts, projects led          Investment Agreement for the CCIA, by the Heads of States and Government . An action
 to the Action concept [2.9]              Plan was further adopted, A Strategic regional Framework for improving the business
                                          environment in the region and a related Roadmap were adopted by member States.
 Indicate if this action is
                                          Capacity building in the area of investment is also included in the roadmap
 inspired from a “success
 story” (i.e. a similar action
 was successfully implemented
 elsewhere) [2.9]

 Where the action is the                  The action is the continuation programme as it is designed for implementing the roadmap.
 continuation of a previous
 action, explain how the action
 is intended to build on the
 results of this previous action
 [2.9]

 Where the action is part of a            This action is in line with the capacity building which represents the Results 5 of the
 larger programme, explain                Regional Integration Support programme (RISP) funded by EU
 how it fits or is coordinated
 with this programme. Please
 specify the potential synergies
 with other initiatives, in
 particular from the EC [2.9]



     SUSTAINABILITY                       Financial, Institutional, Policy Level




ACP Business Climate Facility (BizClim)                                                             Manual of Procedures
10 ACP RPR 015                                                                   Activity Implementation Proposal (AIP)
                                                                                                                Page | 3
 How will activities be financed          The project will develop a roadmap and a detailed action plan for COMESA Secretariat et
 when the assistance ends?                COMESA Member States. It will expected they further resources will be earmarked to the
 [2.10]                                   implementation of recommendations.

 Will structures allowing the             The promotion of cross-border investments in a major objective assigned to COMESA.
 activities to continue be in place       Furthermore, COMESA-RIA is expected to continue driving the work on this matter.
 at the end of the action? Will
 there be local "ownership" of
 action outcomes? [2.10]

 What structural impact will the          The impact will reflected through policy, regulatory and institutional reforms.
 action have - e.g. will it lead to
 improved legislation, codes of
 conduct, methods, etc? [2.10]




ACP Business Climate Facility (BizClim)                                                             Manual of Procedures
10 ACP RPR 015                                                                   Activity Implementation Proposal (AIP)
                                                                                                                Page | 4
                               LOGFRAME (max 2 pages)

 G L O B A L O B J E C T I V E [ 2. 2]                  Describe the high level objective to which the Action contributes


 To promote reforms in macroeconomic policy, improve legislation, the institutional setup and financial measures (the rules of the game)
 relating to the enabling environment of the private sector in ACP countries and/or regions.

                           Indicators are meant to show to what extent the global
                                                                                                          SOURCES OF
 INDICATORS                objective has been reached - See impact and
                                                                                                          VERIFICATION
                           sustainability indicators

  Businesses, investors and stakeholders reporting a more favourable perception of business              Benchmarking and country ratings
   climate in BizClim’s areas of intervention                                                             Survey of stakeholders, private
  Number draft Laws, recommendations, strategies, roadmaps and other official relevant                   sector key investors and
   documents adopted                                                                                      businesses (e.g. Regulatory
  Number of follow-up actions (e.g. financing of projects formulated, incorporated in RIPs and           Compliance Cost)
   NIPs) taken.                                                                                           Reports and files, press book of
                                                                                                          media appearances



 S P E C I F I C O B J E C T I V E (S) [2.2]            Describe the specific objectives to be achieved by the Action

 The project aims at empowering key stakeholders (in terms of knowledge, capacities and analysis) in undertaking business environment
 reforms and creating more favourable business and investment conditions. More specifically, the project will determine the feasibility of the
 establishment of a political risk guaranty mechanism for FDIs and, offering a window for reinsurance to the insurance industry in ECOWAS at
 the same time mitigating Political risk to FDI and increase FDI flow into the Region.



                                                                                                         SOURCES OF
 INDICATORS                  See effectiveness indicators
                                                                                                         VERIFICATION

  Number of studies, surveys and ratings: The main indicator will be the feasibility study of the       BizClim database of reports
   establishment of a political risk guaranty mechanism                                                  Media appearances and press
  Number of participants from RECs, governments and the private sector (i.e. from the insurance         books
   industry and investors) in brainstorming seminar                                                      Lists of participants and presence
  Quality of discussion sessions with prospects for greater reach out (e.g. dissemination)              sheets in workshops and trainings
  Relevance, applicability and accessibility of studies and consultations                               Fiches for quality evaluation and
                                                                                                         auto-assessment on the transfer of
                                                                                                         competences filled by the
                                                                                                         participants at the end of the
                                                                                                         session
                                                                                                         Official correspondence with
                                                                                                         regional and national authorities
                                                                                                         Workshop reports and minutes
                                                                                                         Reporting by implementing



 EXPECTED OUTCOMES /RESULTS                             Describe the results expected by the implementation of the
 [2 .3 ]                                                activities




ACP Business Climate Facility (BizClim)                                                                    Manual of Procedures
10 ACP RPR 015                                                                          Activity Implementation Proposal (AIP)
                                                                                                                       Page | 5
  Study on Seminar bringing together key stakeholders from the insurance and re-insurance industry, on the basis of a prior quick
   assessment of needs
  Feasibility of Establishing an Investment Guaranty Institution in ECOWAS

                            Indicators are meant to describe and quantify the
                                                                                                           SOURCES OF
 INDICATORS                 outcomes of the activities - See effectiveness and
                                                                                                           VERIFICATION
                            efficiency indicators

 Feasibility study produced on the establishment of an ECOWAS Investment Guarantee/Reinsurance             Report by Consultant
 Agency. The feasibility study will present the economical and financial justification for the proposed
 agency, a detailed provisional investment and operational budget over a period of 10 years, and           Event report
 recommendations on financial structure and contributions.                                                 ECOWAS Commission
 Stakeholders sensitized on the study outcome, creating awareness on the project and carrying
                                                                                                           Technical and Financial Reports
 stakeholders along, and floatation of the proposed Institution (ECOWAS Investment
 Guarantee/Reinsurance Agency) promoted.




                                                          What activities are planned to achieve the above mentioned
     ACTIVITIES
                                                          results?

 Methods of implementation                                The success of the project will hinge on the quality of participants to the
 (e.g. workshops, short term experts…)                    brainstorming seminar. The prior work, covering notably a quick assessment of
 and reasons for the proposed                             needs, is meant to provide a basis for discussions during the seminar. During
 methodology [2.5.1]                                      preparation of the logistics and content of the seminar, care will be taken to identify
                                                          and invite key relevant stakeholders.



 Title, and as much as possible, detailed
 description of each activity to be                       The Contractor will prepare background papers for the brainstorming seminar and
 undertaken to produce the results,                       will facilitate discussions during the event. The ECOWAS Commission will help
 justifying the choice of the activities                  mobilize relevant regional, national and international institutions.
 and specifying where applicable the role
 of each partner (or associates or
 subcontractors) in the activities. [2.5.2]

 LIST MEANS, INPUTS AND TIME LEADS [2.5.3]

  Means, inputs and time leads                           The Contractor will mobilize a Team Leader (financial analyst or economist) and a
  In line with international and                         legal expert.
   standard costs and timeframes
                                                          A Logistical Coordinator will be charged, under another logistics contract, with the
                                                          organization of the brainstorming seminar and other related activities.




ACP Business Climate Facility (BizClim)                                                                      Manual of Procedures
10 ACP RPR 015                                                                            Activity Implementation Proposal (AIP)
                                                                                                                         Page | 6
 Ro l es & Re s po n s ib i li t ie s            How the applicant and its partner(s) is intended to contribute to the
 [2 .6 ]                                         intervention?

 Applicant:                                      The ECOWAS Commission will oversee the overall implementation of the Action and
                                                 will facilitate contacts with respective country authorities.

 Partner 1:


 Partner 2:


 Partner 3:




 PMU ACTIONS                              What PMU actions are needed to put in place and follow-up the Action

 Start-up Phase                           May 1st, 2011

 Implementation phase

 Closing phase

 Other



 COMMENTS & REMARKS                       In case the applicant has made any comments and remarks regarding the
 OF THE APPLICANT                         intervention, indicate it here
 [2.11]




ACP Business Climate Facility (BizClim)                                                         Manual of Procedures
10 ACP RPR 015                                                               Activity Implementation Proposal (AIP)
                                                                                                            Page | 7
                                                          TIMETABLE


                                                           Month     1   2    3     4      5     6      7     8
  Activity

  Describe methodology for carrying out the assignment,
  operational arrangements and roadmap



  Field surveys, need assessment, analysis of survey outcome,
  decision/opinion of consultant



  Prepare the brainstorming seminar (i.e. content)




  Contribute to a seminar bringing together key stakeholders to
  discuss the feasibility of the creation of a re-insurance scheme



  Create awareness on the project and carry stakeholders along,
  Mobilizing support and stakeholder commitment to project



  Present final reports, including technical and financial parts.




ACP Business Climate Facility (BizClim)                                                         Manual of Procedures
10 ACP RPR 015                                                               Activity Implementation Proposal (AIP)
                                                                                                            Page | 8
                                               BUDGET



                                     1. Contracted Expert Fees in €


                                                                             Unit       Quantit
N°                          Type of costs                        Unit        cost         y        Total

   1    HUMAN RESOURCES

   1.1 Contracted expert Fees

1.1.1   Team Leader                                            Man/day          1,000     60           60,000


1.1.2   Legal Expert                                           Man/day           900      60           54,000


1.1.3


                                          TOTAL of Fees in €                                        114,000.00

                                          2. Reimbursable Cost in €

   2.1 Per diem                                                  Unit           Unit Quantit           Total
                                                                                Cost   y

2.1.1   Brussels, Belgium                                         Night

2.1.2   Abuja, Nigeria ‘                                          Night

2.1.3                                                             Night                                     0

   2.2 Maximum average costs (to be justified)                    Max.


 2.2.1 Communications (telephone, fax,                           Month
       correspondence)

 2.2.2 Meetings (e.g. coordination meetings with                  Max.
       applicant, other donors, etc.), translation &
       interpretation, etc.

 2.2.3 Report drafting (incl. Translation), publication           Max.
       and dissemination

   3.1 Travel expenses*

3.1.1                                                              trip

3.1.2                                                              trip




ACP Business Climate Facility (BizClim)                                                  Manual of Procedures
10 ACP RPR 015                                                        Activity Implementation Proposal (AIP)
                                                                                                     Page | 9
3.1.3                                                          trip                                      0

   3.2 Organisation of workshop & conference

3.2.1 - A. International Travel (participants)                Trip

3.2.2 10% Contingency international travel

3.2.3 - C. Per diem (average 3 nights ) for participants      Night

3.2.4 - D. Fees Moderators/Speakers (XX experts)             Man/day

3.2.5 - E. Provision for Interpreters during the              Max.
      conference & translators before and after the
      conference

3.2.6 - F. Rent venue (incl. for press conference) &          Day
      equipment

3.2.7 - G. Refreshments, coffee breaks                        Per
                                                             person

3.2.8 - H. Lunches for participants not entitled to a per     Per
      diem                                                   person

3.2.9 - I. Cocktail (closure)                                 Per
                                                             person

3.2.1 - J. Visibility (Media, PR, Brochures, Road Map,        Max.
0     Proceedings, etc.)

3.2.1 - K. Information Kit, Badges & Preparation (incl.       Max.
1     banners, etc.)

3.2.1 - L. Other (e.g. video, DVD, etc.)                      Max.
2

                         TOTAL Reimbursable Cost in €                                                    0

                                            3. Contingencies in €

        (Max 10 % of reimbursable cost)                                                                  0

                                          TOTAL COSTS in €                                               0



* Maximum planned according to airfares forecasts.




ACP Business Climate Facility (BizClim)                                                Manual of Procedures
10 ACP RPR 015                                                      Activity Implementation Proposal (AIP)
                                                                                                  Page | 10

				
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