Equatorial Guinea - Training Programme for Middle and Senior

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					     AFRICAN DEVELOPMENT
     BANK GROUP




      TRAINING PROGRAMME FOR
    MIDDLE AND SENIOR EXECUTIVES

          EQUATORIAL GUINEA

APPRAISAL REPORT OF THE PROGRAMME
                (October 2008)
                 *For further information concerning this document, please contact:
   Mr. T. HURLEY                    Sector Director                     OSHD          Ext. 2046
   Mr. S. TAPSOBA                   Division Manager                    OSHD.2        Ext. 3120
   Mr. G. BAYEMI                    Education Analyst                   OSHD.2        Ext. 3084
   Mr. A. MAGASSOUBA                Procurement Specialist              OSHD.0        Ext. 2561
   Mr. Z. L. LAWSON                 Portfolio Analyst                   OSHD.0        Ext. 3196
SCCD: W. A. A.
TABLE OF CONTENTS

I – STRATEGIC ORIENTATION AND JUSTIFICATION ....................................................1
   1.1. Project Links with the Country Strategy and Objectives...........................................1
   1.2. Justification for Bank Intervention ............................................................................1
   1.3. Aid Coordination .......................................................................................................2
II –    PROGRAMME DESCRIPTION..................................................................................3
   2.1.   Programme Components ...........................................................................................3
   2.2.   Technical Options Chosen and Alternatives Considered...........................................4
   2.3.   Programme Type........................................................................................................6
   2.4.   Programme Cost and Financing Arrangements .......................................................6
   2.5.   Project Area and Beneficiaries ..................................................................................7
   2.6. Participatory Approach to Programme Identification, Design and Implementation ............8
   2.7. Consideration of the Bank Group's Experience and Lessons Learnt in Programme Design 8
   2.8.   Key Performance Indicators ......................................................................................8
III – PRGRAMME FEASIBILITY ...........................................................................................9
   3.1.  Economic and Financial Performance ......................................................................9
   3.2.  Environmental and Social Impact ...........................................................................10
IV –IMPLEMENTATION.......................................................................................................12
  4.1.  Implementation Arrangements ................................................................................12
  4.2.  Monitoring ...............................................................................................................12
  4.3.  Governance ..............................................................................................................13
  4.4.  Sustainability............................................................................................................13
  4.5.  Risk Management ....................................................................................................14
  4.6.  Knowledge Development.........................................................................................15
V – Legal Framework ..............................................................................................................15
  5.1.   Legal Instrument .....................................................................................................15
  5.2.   Conditions for Bank Intervention ............................................................................15
  5.3.   Compliance with Bank Policies ...............................................................................16
VI – RECOMMENDATION...................................................................................................16

Appendix I. Comparative Socio-Economic Indicators of the Republic of Equatorial Guinea...
Appendix II. Table of ADB Portfolio in the Country..................................................................
Appendix III. Key Related Projects Financed by Other Development Partners ........................
Appendix IV. Map of the Project Area........................................................................................
                            Currency Equivalents
                                    (August 2008)

                  1 UA                  =       681.074 CFAF
                  1 UA                  =       1.038 EUR
                  1 UA                  =       1.620 USD

                                   Fiscal Year
                                January – December

                            Weights and measures
                  1 metric tonne        =       2204 pounds
                  1 kilogramme (kg)     =       2,200
                  1 metre (m)           =       3.28 feet
                  1 millimetre (mm)     =       0.03937 inch
                  1 kilometre (Km)      =       0.62 mile
                  1 hectare (ha)        =       2.471 ares

                         Acronyms and Abbreviations
ADB       =   African Development Bank
BTP       =   Building and Civil Engineering
CFA       =   CFA Franc
CSP       =   Country Strategy Paper
DGERS     =   Department of Higher Education and Research
DGES      =   Department of Secondary Education
DGPPE     =   Department of Planning and Educational Programmes
ETFP      =   Technical Education and Vocational Training
EUAPEF    =   University School of Agriculture, Fisheries and Forestry
EUR       =   Euro
ILO       =   International Labour Organization
INPYDE    =   National Institute for the Promotion and Development of Entrepreneurship
MESS      =   Ministry of Education, Science and Sports
MINFIB    =   Ministry of Finance and the Budget
NESD      =   National Economic and Social Development Programme
NPV       =   Net Present Value
REG       =   Republic of Equatorial Guinea
PPI       =   Provincial Polytechnic Institute
TRE/ERR   =   Economic Rate of Return
TRI/IRR   =   Internal Rate of Return
UA        =   Unit of Account
UNESCO    =    United Nations Educational, Scientific and Cultural Organization
UNGE      =   National University of Equatorial Guinea
USD       =   US Dollar
VRD       =   Roads and Other Networks
                                             ii

Project Brief
Customer Information
BORROWER                       :     GOVERNMENT OF EQUATORIAL GUINEA

EXECUTING AGENCY               :     Ministry of Education, Science and Sports

Financing Plan
              Source:                        Amount (UA)       Instrument


              ADB                            40 000 000        Loan
              GOVERNMENT                     51 000 000        National Budget
              OVERALL COST                   91 000 000


Key ADB Financial Information



              Loan currency/ grant                             EUR
              Type of interest                                 Fixed
              Duration                                         20 years
              Grace period                                     5 years


Duration- Major Phases (expected)


              Approval of concept paper                        20/08/2008
              Project approval                                 10/12/2008
              Effectiveness                                    25/04/2009
              Last disbursement                                31/12/2013
              Completion                                       31/11/2013
              Last reimbursement                               01/02/2028
                                                             iii

                                                  Project Summary
         Programme overview. The Republic of Equatorial Guinea is a country in Central
Africa with a population of about 1,014,999 inhabitants1 (2005 projection based on the
General Population and Housing Census of 2001). Its current situation is a paradox since
despite a gross domestic product (GDP) of USD 19 174 in 2007, i.e. more than 26 times its
1996 level, the country is confronted with structural constraints which prevent it from
transforming its immense financial resources into sustainable development opportunities.
Indeed, about 77% of its population live below the poverty line. Admittedly, the country’s
economic growth is high, but it remains fragile because it is still highly dependent on oil
exports. Furthermore, the country faces the problem of shortage of human resources and its
administrative management is inefficient. In view of the situation, skills training is an
important lever in effort to draw benefit from the oil resources and diversify the economy.
         The purpose of the programme for the training of middle and senior executives is to
develop the skills required for the diversification and competitiveness of the Equato-Guinean
economy. The operation, which costs UA 91 million (UA), including UA 40 million for the
Bank (to finance scientific equipment, laboratories, training and programme content ) and
UA 51 million for the Republic of Equatorial Guinea (REG) (to finance the overall cost of
construction and rehabilitation works), will be implemented over a five-year period, with
effect from 2009. The programme was designed to serve the entire country, and its direct
beneficiaries are young students through initial and continuous training provided by the
provincial polytechnic institutes of Luba, Bata, Babying, Mongo and Evinayong, as well as
by the National University of Equatorial Guinea. The programme also targets project
developers, business employees, as well as the rural populations. It is ultimately expected to
contribute to the achievement of food sufficiency, increase the non-oil gross domestic
product, and improve the general living conditions of the populations.
        Needs Assessment Today, Equatorial Guinea is facing major challenges, particularly
with respect to the economic diversification, as well as social welfare and cohesion.
Consequently, the Government adopted a National Economic and Social Development
Programme (NESDP) still known as “Equatorial Guinea 2020”. Human resource training is
one of the key strategies of the NESDP and CSP 2008-2012. It is also a key tool for the
country’s transformation given the need for competent managers to modernize the
administration and ensure the smooth functioning of the private sector.
         Added Value of the Bank: The programme’s added value stems from the fact that
through this new intervention, the Bank intends to make significant efforts over a long period
to address the issue of skills shortage faced by Equatorial Guinea. Indeed, in the past, the
Bank’s operations in the social sector were designed in the form of projects, whose impact
was unanimously considered as insignificant. This programme will remedy the shortcomings
of previous interventions by supporting actions which will eventually help to provide a
lasting solution to the structural problem of skills shortage in Equatorial Guinea. It draws
lessons from projects completed by the Bank in this country.
         Knowledge Management: The implementation of the programme will help to
develop the knowledge required for better analysis of matching training with employment in
Equatorial Guinea. This knowledge will be disseminated at the national level and by the Bank
through seminars and forums. It will also serve as basis for improving future professional
training programmes in other countries.

1
    Other sources (ADB, WB, UNDP, etc.) indicate a population of about 551 000 inhabitants.
                                                                              iv
                                                               Results-based logical framework

HIERARCHY             OF    EXPECTED                                            PERFORMANCE                       TIME    FRAMES    FOR
                                                      IMPACT                                                                                      ASSUMPTIONS/RISKS
OBJECTIVES                  OUTCOMES                                            INDICATORS                        TAREGT INDICATORS

Overall Goal:               Impact:                   Beneficiaries:            Impact Indicators:                Expected long-term              Assumption:
                                                                                                                  progress
Develop       skills  for                             - Public and private
diversification      and
                            -   Improve the quality                             -   percentage               of   -   Increase in the number      Political   will  to
                                of labour;              sectors
competitiveness of the                                                              employees          having         of employees with a         implement the NESDP
                            -   Increase              - The         country’s
economy
                                productivity;           populations                 reached              higher       higher education degree
                            -   Increase income       - Independent workers                                                                       Risk:
                                                                                    education level;                  from   10% in 2009 to
                                                                                                                                                  Social tensions
                                                                                -   percentage               of       12 % in 2010, then to
                                                                                    employees          having         15% in 2013 ;
                                                                                                                                                  Support measures :
                                                                                    reached       secondary       -   The    percentage      of
                                                                                                                                                  Create a social fund to
                                                                                    education level;                  employees           with    facilitate access by the
                                                                                -   percentage               of       secondary          school   poor to basic social
                                                                                                                                                  services
                                                                                    graduates who found               education       increases
                                                                                    jobs;                             from 20% in 2009 to
                                                                                                                      25% in 2010 and 35%
                                                                                (Statistical      data       of       in 2013;
                                                                                MINFIB,        Ministry      of   -   The    percentage      of
                                                                                Planning        and         the       employed        graduates
                                                                                Department       of   Labour          rises from 30% in 2009
                                                                                and Employment )                      to 35% in 2010 and
                                                                                                                     45% in 2013;
                                                                                                                  Schedule:
                                                                                                                  From 2009 to 2013
                                                                                           v

HIERARCHY               OF     EXPECTED                                                PERFORMANCE                         TIME    FRAMES    FOR
                                                          IMPACT                                                                                                ASSUMPTIONS/RISKS
OBJECTIVES                     OUTCOMES                                                INDICATORS                          TAREGT INDICATORS

Programme objective            Results:                   Beneficiaries:               Results indicators                  Anticipated        medium-term       Assumption:
Institute mechanisms for        - Initial training of a                                                                    progress                             The development of
the training of middle and     large number of skilled    -   Young students ;         -       Pass-rate   at   official
senior executives in the       staff                      -   Project developers ;                                                                              human capital is a
fisheries, agriculture, oil,                                                                   technical    education      - The pass-rate increases
technology and services
                                                          -   Private         sector                                                                            priority     of      the
                                                               employees ;                     and          vocational         from 45 in 2009 to 50%
sectors.                                                  -   Populations of the                                                                                Government
                               - Continuing    training                                        training examinations           in 2010, and finally 60%
                                                               agricultural sector
                               of workers       already                                                                        in 2013                          Risk:
                               employed                                                                                                                         Brain      drain     and
                                                                                                                                                                possible loss of trained
                                                                                       -       percentage of skilled                                            teachers
                                                                                               workers retrained by        - The percentage of PPI-             Support measures :
                                                                                               the          provincial         certified     workers   rises    Application            of
                                                                                               polytechnic institutes          from 30% in 2009 to 50%          incentives     (isolation
                                                                                                                                                                allowance,           free
                                                                                         (PPI)                                 in 2013
                                                                                                                                                                accommodation, etc.)
                                                                                       (MESS statistics)
                                                                                                                           Schedule:
                                                                                                                           From 2009 to 2013
Resources              and     Products :                 Beneficiaries:               Product indicators                  Expected          short-term         Assumption:
activities:                    - Creation of 5 PPIs,      -   DGES,        UNGE,       -       Number                of    progress                             Earmarked       resources
                                  and improvement             students
- Improvement          of                                                                      infrastructures put in      -    5     PPIs     created,    5    are available in time
   training opportunities         of the training
                                  opportunities   in                                           place                            laboratories              and
   (UA 71.5 million)
                                  EUAPEF                                                                                        computer room built             Risk:
                                                          -    DGPPE, DGESR                                                                                     The low capacity of the
- Capacity building (UA        -   DGPPE statistical           and Teachers                                                                                     administration
  15.0 million)                    capacities             -    ETFP Inspectors
                                   strengthened                                                                            -    5 statistical yearbooks
                                                                                                                                                                Support measures :
                                                          -    Ministries              -       Number of statistical            published                       Provisional use of
- Programme                    -   Scheduled activities   -    Private sector                  yearbooks published         -    94 teachers trained             technical assistance
  management          (04.5        fully implemented                                   -       Number of teachers          - 6 inspectors trained
  million UA)                  -   Financial resources                                         trained                     Schedule: From 2009 to 2013
                                   entirely consumed                                                                       - Implementation rate from
                               -   Audits     regularly                                (MESS statistics)
                                                                                                                              5% in 2009, 50% in 2011
                                                       vi

HIERARCHY    OF   EXPECTED                         PERFORMANCE                    TIME    FRAMES    FOR
                                          IMPACT                                                                ASSUMPTIONS/RISKS
OBJECTIVES        OUTCOMES                         INDICATORS                     TAREGT INDICATORS

                      conducted  every                                                and 100% in 2013
                      year                                                        -   Disbursement rate from
                  -   Completion report            -        Implementation rate       4% in 2009, 50% in 2011
                      prepared                                                        and 100% in 2013

                                                   -        ADB loan and REG
                                                            counterparty
                                                                                  - MESS reports
                                                            disbursement rate
                                                                                  - Supervision reports
                                                                                  Schedule: From 2009 to 2013
                                  vii

Project implementation schedule
       REPORT AND RECOMMENDATION BY BANK GROUP MANAGEMENT TO THE BOARD OF
      DIRECTORS CONCERNING THE PROPOSED LOAN TO EQUATORIAL GUINEA FOR THE
          TRAINING PROGRAMME FOR MIDDLE AND SENIOR EXECUTIVES

        The management hereby submits these report and recommendation concerning a
proposed loan of UA 40 000 000 to finance the Programme for the training of middle and senior
executives in the Republic of Equatorial Guinea.

I.       STRATEGIC ORIENTATION AND JUSTIFICATION

1.1      Project Links with the Country Strategy and Objectives

1.1.1    The Programme for the training of middle and senior executives is in keeping with the
Government’s National Economic and Social Development Programme (NESDP) known as
“Equatorial Guinea: Vision 2020” which focuses on four strategic areas : (i) build international
class infrastructures to improve productivity and accelerate economic growth, (ii) strengthen
human capital and improve the quality of life of each citizen, (iii) build a diversified economy
based on the private sector; and (iv) institute good governance at the service of citizens. The
proposed Programme is also in line with the strategic guidelines of the Education for All (EFA)
Plan since it seeks to build the capacities of the Ministry of Education, Science and Sports
(MESS) and develop the technical and scientific skills required for diversification of the
country’s economy through vocational training.

1.1.2    The programme complies with the guidelines defined by Equatorial Guinea’s Country
Strategy Paper (CSP) for the 2008-2012 period, which seeks to find a solution for the paradox of
abundant financial resources, poor national capacities and persistent social inequalities.
Consequently, the strategy adopted by the Bank to provide assistance to the REG is essentially
based on capacity building. It comprises two pillars: (i) national capacity building, and (ii)
creating conditions for economic diversification. The Programme for the training of middle and
senior executives is thus designed to support the implementation of strategic area (ii) of the
NESDP and pillar (i) of the CSP. In addition to the Public Finance Management Support Project
and the Health System Development Support Project, this programme is among the three priority
interventions adopted in the 2008 loan programme for the implementation of the Bank’s
reengagement strategy in REG as a key development partner.

1.2.     Justification for Bank Intervention

1.2.1    The Bank’s intervention is justified by the fact that Equatorial Guinea has enormous oil
resources. Paradoxically, it is confronted with fragile economic growth, poor diversification of
its growth sources, high inflationary pressure, increasing impoverishment with 77% of the
population living below the poverty line, and a huge human resource deficit.

1.2.2    At present, there is urgent need to strengthen the country’s human capital with a view to
reducing the share of hydrocarbons (oil and gas) in the gross domestic product, build a
diversified economy and improve the living conditions of the populations. The programme,
financed by the Bank and the REG, will therefore train competent officials who will be required
                                                               2

to contribute to establishing structural improvement policies in the education sector and to
diversifying economic growth sources. Furthermore, the training advocated in the country in the
PPIs and UNIGE will encourage graduates to remain in the country, and thereby avoid brain
drain.

1.2.3    The public technical and vocational training system in Equatorial Guinea currently
comprises two centres, whose infrastructures are in state of total decay. The rare existing private
structures, created more recently, propose training for secretaries and data entry operators only.
There is a gap between the needs expressed by the labour market and the skills provided by the
training offered currently. For this reason, the high unemployment rate in the country seems to
be more related to the low employability of the working population than to inadequate job
opportunities.

1.2.4     There is no doubt that the populations’ low level of training is a major handicap to the
productivity of the Equato-Guinean economic system. The transformation of the Equatorial
Guinean economy will only succeed if the building of human capacities becomes an absolute
priority. Through the skills it provides to its trainees, the programme is a profitable investment
for the individual, the employer and the economy.
1.2.5    A review of the Bank’s portfolio over the past decade shows that the institution has
acquired experience in the social sector, particularly in education and training. The Bank has
intervened in Equatorial Guinea through the construction of the National School of Agronomy
which currently houses the campus of the National University of Equatorial Guinea in Malabo.
Thus, this new operation in the education sector consolidates the past achievements and creates
an innovative mechanism for vocational training.
1.3.     Aid Coordination
1.3.1    Because of its new status as middle-income country and its huge budget surplus, the
REG resorts less and less to Official Development Aid. At present, only a few bilateral or
multilateral cooperation agencies (Spain, France, Cuba, China, Morocco, Algeria, UNESCO,
ILO, UNICEF, UNDP, WHO, etc.) and private or denominational partners intervene in the
education and training sector. Ongoing activities include: (i) a project to support the education
system reform by formulating and adapting the curricular content of the “baccalaureate”, (ii)
support for Spanish schools in Malabo and Bata, (iii) teacher capacity building programmes
financed by the French Cooperation, (iv) a university cooperation programme financed by the
French Cooperation, and (v) a programme for the development of Education in Equatorial
Guinea (PRODEGE) financed by the oil company, HESS. The complete list of the key related
projects financed by other partners is provided in Appendix III.

                    Aid coordination level
                    Existence of thematic working groups            No
                    Existence of an overall sector programme        No
                    Role of ADB in aid coordination                 None
                    **** L : Leader;
                         M : member (other than leader):
                         None No role


1.3.2    Unfortunately, there is no coordination mechanism for the technical and financial
                                                 3

development partners (TFP). The Bank had discussions with most TFPs during the
identification, preparation and evaluation of the programme. In the course of the programme’s
implementation, it will inform all the partners present in Equatorial Guinea about the progress of
its operation so as to encourage their participation in the development of the technical and
vocational training sub-sector, as well as synergies with their operations.

II.      PROGRAMME DESCRIPTION

2.1      Programme Components

2.1.1    The sector goal of the programme is to develop the skills required for the diversification
and competitiveness of the Equato-Guinean economy. More specifically, the programme seeks
to create an innovative technical and vocational training mechanism for middle and senior
executives that meets the needs of the country’s economy.

2.1.2     The programme is centres on the construction and equipment of five (5) new Provincial
Polytechnic Institutes, as well as the rehabilitation and equipment of laboratories and computer
rooms at the University School of Agriculture, Fisheries and Forestry (EUAPEF). The
programme will also train senior executives, outside the country, in the areas of agriculture,
fisheries, forestry and oil technologies. It will train middle-level executives and skilled labourers
in 42 training fields (see technical Annex C1) structured into eight priority growth-oriented
sectors (Oil extraction/Petrochemistry, Building and Civil Engineering, Agriculture, Fisheries,
Animal Breeding, Forestry, Technology and Tertiary). Finally, the programme will retrain
workers holding jobs in the private and public sectors, and build the capacities of the DGPPE
and INPYDE. The programme’s activities fall within three components: (i) improvement of
training opportunities, (ii) capacity building, and (iii) programme management.
                                                4


                                            Table 2.1
                                      Programme Components

  No.        Name of      Cost Estimate                Description of Components
           Component      in UA million
  1     Improvement of         71.5            Construction and equipment of 5 PPIs ;
        training                               Preparation of curricula and teaching aids
        opportunities                          Rehabilitation and equipment of five laboratories
                                               and a computer room for EUAPEF ;
                                               Sensitization campaign for the communities the
                                               enrollment of girls in the technical and vocational
                                               training schools;
                                               Award of 50 merit scholarships per annum to
                                               deserving girls attending PPIs;
                                               Survey on the training needs of businesses;
  2     Capacity               15.0            Support for DGPPE through training of six senior
        building                               staff in statistics (in Africa) and education planning
                                               (at IIPE in Paris), technical assistance and
                                               provision of equipment);
                                               Technical assistance for INPYDE to institute an
                                               efficient mechanism for the promotion and
                                               development of entrepreneurship;
                                               Training abroad (Africa, Europe, America and
                                               Asia) of 82 PPI teachers, 12 EUAPEF lecturers
                                               and 3 technical and vocational training inspectors
  3     Programme              04.5            Technical assistance and taking charge of four
        management                             counterparts ;
                                               Procurement of additional equipment ;
                                               Payment of operating costs and monitoring
                                               missions of the programme

2.2.     Technical Options Chosen and Alternatives Considered

2.2.1    The approach adopted to improve the medium and top-level technical skills
(build/rehabilitate and equip schools, prepare modular training programmes, train teachers) so as
to remove the human constraints on growth is justified by the significant shortage of technical
executives at this level. The growth outlook and the economic priorities of the Agenda for the
diversification of growth sources, as well as the National Economic and Social Development
Programme (NESDP) strongly suggest that this shortage will continue to deepen if no remedial
action is taken. Consequently, the building of capacities that meet international standards is the
only possible option.

2.2.2    The proposed training methods (modular training, initial training, strong employer
involvement, great flexibility in the definition of training fields, etc.), which are based on
constant monitoring of the labour market and graduates, use the best practices in the sector.
Furthermore, the institutions will organize continuing training for executives who hold jobs or
wish to give a new direction to their professional career.
                                                       5


                                                   Table 2.2
                               Alternatives considered and reasons for rejection
Alternative          Brief Description             Reason for Rejection
solution
Reform     basic Improve access and quality            The government programme which provides for basic
education        of education                          education for all in the short-term :

                                                       Will not immediately reduce the significant imbalances
                                                       observed on the labour market (shortage of middle-
                                                       level technicians);
                                                       Will not facilitate the development of structures for the
                                                       continuing training of the technicians required for
                                                       innovation and improvement of production by the
                                                       enterprises.
Lay emphasis         Support only the training         The shortage of middle-level technicians is specific
on         « soft»   abroad of executives in           and too significant for the additional training capacities
solutions rather     sensitive    positions   (for     of neighbouring countries.
than invest in       example in neighbouring
infrastructures      countries), support actions       The capacity of existing centres is clearly insufficient
                     intended to improve training      to satisfy the current demand both qualitatively and
                     in the two existing public        quantitatively, and even less that forecast in connection
                     centres and possibly in the       with the growth prospects: the infrastructure of the
                     only private centre.              Malabo centre (12 Octobre) are in a dilapidated state
                                                       which makes it impossible to undertake any
                                                       meaningful rehabilitation works; that of Bata
                                                       temporarily occupies the premises belonging to the
                                                       university, which is expected to extend soon. Apart
                                                       from these two centres, there are a few small
                                                       vocational training structures belonging to Catholic
                                                       missionaries, which is attended mostly by girls.

                                                       Thus, the private vocational training sector is virtually
                                                       non existent.
                                                       The capacity of the only medium-level training centre
                                                       (run by the “Pères Salésiens” (Salesian Fathers) in
                                                       Bomudi is too limited to satisfy the demand without
                                                       massive investments in infrastructure and equipment.

  2.2.3    As described in Table 2.2, the Bank could have directed the programme towards the
  improvement of basic education for all as basis for equitable access to the development of
  professional skills. Unfortunately, this option does not address the country’s skills shortage in the
  short and medium-terms. Besides, fairly sufficient resources are currently being mobilized by the
  State and other development partners for this sub-sector, and additional financing might
  therefore not be necessary in the short-term.

  2.2.4     On the other hand, investments in the science and technology sector will provide the
  country with competent middle and top management executives. This will eventually help build
  a critical mass of skills that will be involved in training, research and innovation activities so as
  to find solutions to national development problems. Consequently, the adopted technical option
                                                       6

consisting in training skills locally through innovative teaching methods and courses is
appropriate for the Republic of Equatorial Guinea.

2.3      Programme Type

2.3.1     The Bank’s intervention is in the form of a programme initially restricted to the Luba,
Bata, Ebebiyin, Mongomo and Evinayong area. It will be developed during the coming decade in
all the administrative regions in accordance with the objective of the National Economic and
Social Development Programme to set up at least one provincial polytechnic institute in each of
the country’s provincial capitals. The lessons learnt from the current establishment phase will
better strengthen the experience of PPI and help design appropriate support for higher education
institutions.

2.3.2    In its design, this operation also seeks to associate the interventions of other
development partners with human resource training in the Republic of Equatorial Guinea by
establishing a quality network of provincial polytechnic institutes. Finally, it is complementary
to the Bank’s other two projects in the pipeline aimed at building skills in the specific sectors of
health and institutional support for public finance management structures.

2.4      Programme Cost and Financing Arrangements

         The programme’s overall cost, exclusive of tax and custom duty, is estimated at UA 91
million, corresponding to CFAF 61 977 734 000. It will be jointly financed by two sources: the
African Development Bank for UA 40 million and the Government of the Republic of Equatorial
Guinea for UA 51 million. With the exception of the works, the Bank’s contribution will cover
all expenditure categories, particularly training, equipment, technical assistance and part of the
operating costs. The Government’s contribution will finance all the construction works in the
provincial polytechnic institutes, and rehabilitation works of the University School of
Agriculture, Fisheries and Forestry, as well as part of the operating costs.

                                                  Table 2.3
                                Cost Estimates by Component [in UA million]
              Components                       Foreign      Local currency   Overall cost   % foreign
                                            exchange Cost        Cost                       currency
  Improvement          of        training       46.0             17.0            63.0          73
  opportunities
  Capacity building                             11.3             02.0            13.3          85
  Programme management                          02.6             01.3            03.9          66
  Total base cost                               59.9             20.3            80.1          75
  Provision      for     implementation         05.5             01.7            07.2          76
  contingencies
  Provision for price escalation                01.9             01.8            03.7          52
  Total project cost                            23.7             67.3            91.0          74
                                                          7

                                                 Table 2.4
                                 Sources of Finance [Amounts in UA million]
          Sources of Finance            Foreign         Local currency        Total cost          % total
                                     exchange cost           cost
      ADB Group                          30.3                09.7                40.0              43.7
      Government                         37.0                14.0                51.0              56.3
      Total project cost                 67. 3               23.7                91.0              100

                                                 Table 2.5
                       Project Cost by Expenditure Category [Amounts in UA million]
      Expenditure Category                        Foreign         Local currency        Overall        %
                                               exchange cost           cost              cost        foreign
                                                                                                    currency
      Works                                        32.6                10.9                43.5        75
      Goods                                        09.6                03.1                12.6        76
      Services                                     07.2                03.1                08.5        85
      Operating costs                              00.0                03.2                03.2        00
      Total base cost                              59.9                20.3                80.1        75
      Provision      for     implementation        05.5                01.7                07.2        76
      contingencies
      Provision for price escalation               01.9                01.8                03.7        52
      Total project cost                           67.3                23.7                91.0        74

                                                Table 2.6
                       Expenditure Schedule by Component [Amounts in UA million]
      Components                                2009           2010       2011             2012      2013
      Improvement       of          training    05.2           21.4       44.0             00.8      00.1
      opportunities
      Capacity building                          05.4          05.3       04.4             00.0      00.0
      Programme management                       01.0          00.8       00.9             00.8      00.8
      Total base cost                            11.6          27.5       49.3             01.7      00.9

2.5        Project Area and Beneficiaries

2.5.1    First of all, the programme will concern youths attending school all over the country.
The network of provincial polytechnic institutes will admit pupils at the end of their primary
cycle for the skilled labour level and students completing their secondary cycle for the technician
level. Training at the University School of Agriculture, Fisheries and Forestry will be provided to
“baccalaureate” holders having completed high school and intending to become senior
executives.

2.5.2    Secondly, the programme will target young school drop-outs and a large adult
population composed of business employers, business project developers, people wishing to
upgrade their skills or give a new direction to their careers, and populations active in the rural
development sector. Their training will be designed on the basis of independent modules, and
their qualification will depend on the accumulation of the required modules. Thus, the
programme will implement the notion of life-long training.
                                                                  8

2.5.3     The programme will be particularly beneficial to girls by improving the scientific and
technological training opportunities in the education system. To that end, it will lay emphasis on
sensitizing the communities about girls’ enrolment in training structures and promoting merit
through the award of scholarships to them. Once trained, the girls will have their economic
power strengthened and will thus be able to contribute further to the country’s economic growth.

2.6.        Participatory Approach to Programme Identification, Design and Implementation
2.6.1    The participatory approach was given pride of place during the programme’s design.
Working sessions were held with heads of administrative services and key development partners.
Besides, discussions were organized with target beneficiary groups, the private sector and civil
society. Their viewpoints were taken into consideration in the project set-up.
2.6.2    During the programme’s implementation, the institutional arrangements provide for the
involvement of all concerned actors (State, TFP, private sector and civil society), as the
diagnosis and results validation level. At the civil society level, the programme will particularly
ensure that women NGOs are highly represented. Presentation workshops on the studies, results
validation and ownership by beneficiaries are scheduled during the programme’s lifespan.
2.7         Consideration of Bank Group Experience and Lessons Learnt in the Programme
            Design
2.7.1     The programme design takes into consideration the Bank’s experience and the lessons
learnt from its past interventions2 in the various sectors. On the whole, the implementation of the
Bank’s operations in Equatorial Guinea was hampered by immense difficulties which include the
Government’s poor management capacity, administrative red tape, insufficient workforce and the
excessive rotation of managerial staff, as well as lack of continuing training of project staff.
These are compounded by defective project design and set-up which lead to delays in start-up
and reduce the quality of works, the organizational and technical limits of project implementing
agencies, as well as their lack of autonomy in the daily conduct of activities.
2.7.2 The programme set-up is based on a participatory approach and advocates close
monitoring of the implementation of activities to ensure that corrective measures are adopted in
time. Finally, technical assistance and the training of national management executives in the
Bank’s rules of procedure will make up for the lack of management capacities and the
deficiencies of administrative services.
2.8         Key Performance Indicators
2.8.1    A set of results indicators is proposed to evaluate the progress made towards obtaining
the programme’s key results. These are:

            i)      Number of training fields created and operational;
            ii)     percentage of graduates who find jobs;
            iii)    Pass-rate at official technical education and vocational training examinations;
            iv)     percentage of skilled labourers retrained in PPIs;
            v)      Number of infrastructure (laboratories, classrooms, PPIs, etc.) built ;

2
 In the 1990’s, the Bank funded the following three operations : (i) the basic health service strengthening project ; (ii) the
Poverty Reduction Project and (iii) the Planning Ministry’s institutional capacity building project.
                                                          9

        vi)     Number of teachers, statisticians, planners and inspectors trained ;
        vii)    Number of statistical yearbooks produced during the programme’s lifespan;
        viii)   Programme’s physical implementation rate; and
        ix)     ADB loan and REG counterpart funds disbursement rate

2.8.2    The data will be collected and analyzed by the Planning and General Education
Directorate (DGPPE), the Higher Education and Research Directorate (DGESR) and the Bank’s
supervision missions. The analyzed indicators will be used to assess the programme’s
effectiveness during its implementation and after its completion.

III.    PROGRAMME FEASIBILITY

3.1      Economic and Financial Performance
3.1.1     The approach used here is based on a cost-benefit analysis. Within the limits of the data
that the appraisal team was able to collect, an economic rate of return was estimated with
relatively conservative assumptions, explained in detail in B6, based on the formula:
                                                        E (U ) − E (S )
                                               TRE =
                                                        n[E (U ) + C ]

where E (U) refers to the average annual salary fixed for a PPI diploma holder; E (S) is the
average annual salary fixed for a high school graduate; n is the duration of the training in PPI;
and C the annual training cost per student in the PPI. An Internal Rate of Return (IRR) and a Net
Present Value (NPV) were also estimated through cost projections (including investments,
annual charges, yearly debt payments) and profits (projection of salaries received by initial
training graduates) by 2038.
                                                Table 3.1
                                      Key Economic and Financial Data
                                                                          Assumptions:
                                                 Income variation (-
                                                       10%)                Cost variation        Combined
                                    Baseline            (i)                  (+10%)              variation
                                    scenario                                    (ii)              (i)+(ii)
        ERR (%)                      7.8%               3.1%                  7.6%                3.0%
        IRR (%)                     20.8%.              19.6%                20.8%                19.6%
        NPV             (CFAF
                                      95.1              78.2                   95.1                   78.2
        billion)

                   IRR, NPV (baseline scenario)                 (20.8%,         95.1        billion
                                                                 CFAF)
                   RR (Baseline scenario)                       (7.8%)
        NB: The detailed calculations are in Annex B6

3.1.2   Despite the strong assumptions (provisions for depreciation of buildings and
                                                10

equipment), this investment will register an economic return rate of 7.8% and a significant NPV
by 2038 as well as a financial yield of 20.8% well above the capital cost estimated at 12%, on
average.
3.1.3    The discussions held with employers and employees of the institutions clearly indicate
that the demand for skilled labour is very high, mainly because Equato-Guinean law clearly
states national preference in recruitments. Besides, it is envisaged that an unemployed PPI
graduate may start his own business with the support of the Entrepreneurship Development
Promotion Institute.

3.1.4 The sensitivity analysis shows that the investment continues to be profitable, despite a
10% increase in costs and a 10% decline in the annual projected revenue. However, the project
seems to be more vulnerable to a decline in incomes than to cost increase. But this risk is
substantially minimized by the high skilled labour demand and the nature of the project which
builds on the private sector whose contribution was not assessed in our analysis.

3.2     Environmental and Social Impact

Environment

         The programme is classified in environmental category 2. The construction of
provincial polytechnic institutes and rehabilitation of the premises of the National University of
Equatorial Guinea will require the clearing and general excavation of the sites, which will
produce material waste. However, these works are not expected to have negative effects on
parks, public gardens, natural reserves or monuments.

        Potential negative effects will be mitigated by specifications requiring businesses to
observe environmental protection measures (tree planting, creation of various roads and
networks for rain and waste water disposal, etc.). Moreover, environmental education will be
included in the training programmes of PPIs and EUAPEF to promote the protection of the
ecosystem. Finally, the waste from the practical workshops and laboratories will be
systematically incinerated.

Climate Change

         Over the past few years, climate change has been especially observed in Equatorial
Guinea through the decline in rainfall due to deforestation. To control deforestation, the
Government enacted a law on the protected areas which account for 18.6% of the national forest
cover; the law prohibits large-scale harvesting of undressed timber on Bioko Island. The
Training Programme for Middle and Senior Executives will lay emphasis on forest cover
protection through the courses taught, as well as the need to plant trees on the sites of the Luba,
Bata, Ebebiyin, Mongomo and Evinayong provincial polytechnic institutes.
                                                 11


Gender

          Gender equity issues are still not sufficiently addressed in the Republic of Equatorial
Guinea because of the scanty research and studies conducted so far in this field. However, the
information currently available shows that in the country, opportunities are unequally
apportioned between men and women. This situation is due to the persistence of some cultural
factors, particularly values, beliefs and behaviours which determine the social status of women.
In 2002 for example, Equatorial Guinea was ranked 86th out of 177 countries as regards the
gender-specific human development indicator with an index of 0.691. A review of the
composition of the Government formed on 14 July 2008 shows that women occupy one (1)
Ministerial post and four (4) Vice-Ministerial posts in a 42-member Cabinet, i.e. a representation
rate of only 11.9 %

          The proposed programme will not have negative impacts on gender equity. On the
contrary, it will contribute to achieving the objective fixed by the Government to establish a
balance between boys and girls as regards access and participation in the education and training
sector. In practical terms, to improve girls’ access to professional training fields and further their
success in the PPIs, the programme will organize an information and sensitization campaign to
hold discussions, dialogue and the support of communities, local authorities and parents and
encourage them to abandon practices that are harmful to the development of young girls and
women.

         The programme will encourage women’s applications to teaching posts, award merit
scholarships to the best girl students, train teachers to practise equity between girls and boys at
school as well as in the classroom, and finally institute sexual education and gender courses in
PPIs. At the university, it will support action-research activities for teachers with a view to
consolidating their management skills and their position in the education system. In short, the
training of girls in science and technology will be a national priority for the programme.

Social

          The programme is expected to have a significant social impact on the entire country.
First of all, by introducing innovative teaching methods and courses, the programme will
facilitate access to training for a wide range of people including youths, adults, and the urban and
rural populations. For example, within ten years, more than 7 000 people are expected to enroll
in provincial polytechnic institutes set up within the framework of the programme, to pursue
training leading to qualification, while the new technical and vocational training system is
expected to reach 50 000 people.

         As regards youth unemployment, it will be easier for graduates from these institutions to
find highly paid jobs in businesses on the spot. Furthermore, businesses will be directly provided
with a workforce that is better adapted to their needs as well as facilities for the continuing
training of officials. Finally, the entire population (including the rural community) will benefit
from the increase in incomes generated by graduates, the increase in agricultural and fisheries
production (improved nutrition) as well as the quality of their products.
                                               12

Forced Relocation
        The programme does not necessitate the forced relocation of the populations.
IV.     IMPLEMENTATION
4.1     Implementation Arrangements
4.1.1   The Department of Higher Education and Research (DGESR) of the Ministry of
Education, Science and Sports, also responsible for technical education, will be the programme’s
executing agency. Like other public services, this structure lacks sufficiently qualified human
resources. However, with the Government’s consent, it is required to contribute to the
implementation of the Bank’s future operations as well as those of other donors.
4.1.2    In view of the Government’s desire to have a permanent agency in charge of managing
education projects and the current shortages in the DGESR, this structure will be provisionally
strengthened by the presence of technical assistance (CTP, training specialist, an expert in
financial and accounting management, a procurement expert and an architect) to enable it to
discharge its administrative mission as well as manage the programme. Given the nature of the
programme which touches on several sectors at the same time, it will set up a steering committee
composed of twelve members from the administration, the private sector, civil society and the
UNDP Office in Malabo.
4.1.3    The DGESR will administer two special accounts opened in a commercial bank in
Malabo, the first to receive ADB resources and the second the government’s counterpart funds.
An initial provision corresponding to four months of activities and justified by a work
programme approved by the Bank beforehand, will be made. The replenishment of this account
will be based on the expenditure vouchers produced by DGESR attesting to consumption equal
at least to 50% of the resources received. Direct payments will be made to businesses in
accordance to the Bank's rules of procedure.
4.1.4    All the programme’s procurements will observe the Bank's rules of procedure for
procurement of works and goods, as well as for the use of consultants. The DGESR will keep
the accounts according to international accounting standards and ensure that the accounting and
financial management systems used are acceptable to the Bank and take into account the internal
management and procedures control. External auditors recruited on a competitive basis and
financed through the programme’s resources will conduct the annual financial and management
audits.
4.2     Monitoring
         The Department of Higher Education and Research (DGESR) will be responsible for the
day-to-day monitoring of the implementation of the programme’s activities, under the
supervision of the Ministry of Education, Science and Sports (MESS). The Bank and the
beneficiaries will be informed through the regular production of progress reports according to the
format used for ADB-financed operations in regional member countries. The Bank will also
monitor the programme’s implementation by sending four supervision missions every year. Two
of them will be undertaken by OSHD and the other two by GAFO. The Bank's Regional Office
in Gabon (GAFO), involved in the programme’s design, will also be given responsibility in its
implementation. The execution of the key programme monitoring activities is summarized as
follows.
                                                              13

Duration                  Phases                                               Monitoring activities / feedback loop
April-Dec. 2009           formulation of occupation benchmarks,                Reports of the design office and curricula and
                                                                               teaching aids of the DGESR
June 2009- Dec. 2011      Training teachers and inspectors abroad and          Reports of education and training institutions
                          locally
June 2009- Dec. 2011      Training DGPPE officials abroad                      Report of provincial institutions and IIPE of
                                                                               Paris
Dec. 2009-April 2011      Construction of PPIs and renovation                  DGESR Activity Reports of EUAPEF
                                                                               laboratories
Oct. 2010-April 2011      Equipment of PPI and EUAPEF laboratories             DGESR Activity Reports Supervision reports
Jan.. 2010-Dec. 2013      Production of statistical yearbooks and conduct      DGPPE Reports
                          of studies
March 2012-2014           Training of PPI managers and Retraining of           End-of-year report       by    MESS      and   the
                          labourers                                            supervision mission

  4.3        Governance

           The programme makes provision for a system comprising a set of measures aimed at
  eliminating the possibilities of fraud and corruption during the implementation of activities. First,
  all the procurement of works, goods and services under the programme will be done in
  accordance with the Bank's rules of procedures. Secondly, an administrative, financial and
  accounting procedures manual will be prepared by the Government. Third, the programme’s
  accountant will be required to prepare financial and accounting reports based on international
  standards and generally recognized accounting practices. Fourth, the Bank will ensure the
  effective implementation of recommendations from annual audits conducted by external auditors
  recruited on competitive basis.

  4.4        Sustainability

  4.4.1     The programme’s sustainability is guaranteed primarily by the authorities’ strong
  political will to diversify the growth sources, which are highly dependent on the hydrocarbons
  (oil and gas) sector today, through national capacity building. This resolve translates into the
  government's substantial contribution (of about 56%) to the programme cost.

  4.4.2 The programme’s annual recurrent costs, estimated at CFAF 1.9 billion, represent about
  6.6% of the 2006 education budget3 but are still sustainable since the network of PPIs is a vital
  link in the human resource system in Equatorial Guinea. Moreover, public spending earmarked
  for education should be substantially increased in future because of the Government’s growing
  interest in the sector and the exceptional GDP growth registered these past years. Finally, the
  contributions of businesses benefiting from continuing professional training could cover the bulk
  of the programme's recurrent costs. .




  3
    Estimated at 26.8 billion CFAF with the conservative assumption of maintaining 0.6% of public spending devoted to education
  in 2003.
                                                 14

      Diagram 1: Link between Training Opportunities in PPIs and the labour market demand
       Qualifications: Opportunities                               Qualifications: Demand

                                                                        Labour
                                                                        Market
                                                  Initial
                                                                             Petrochemistry
                     Technical                   Training                      Technology
                   Education and                                                   Public
                                                                                   Buildings
                    Vocational                                                     and Works
                     Training                   Continuing                         Sector
                       (PPI)                     Training                    Agriculture
                                                                             Wood
                                                                             Tertiairy

          Training and Work                                    Work and Training

4.4.3    The programme also relies on the strong involvement of the private sector from the
onset. Businesses (public or private) operating in the different sectors of the economy with
growth potential will be involved both in the formulation and implementation of the training
programmes. With effect from the first year, PPIs will provide a unique opportunity not only for
professionals already working and wishing to upgrade their skills, but also for those who would
like to give a new direction to their professional careers by acquiring new skills. This need for
skills was strongly emphasized by the different business executives met by the evaluation team.
The programme also makes provision for employment surveys which will facilitate the
adaptation of training offer to the trend of the demand on the labour market. The proposed
system (Diagram 1) thus seeks to guarantee the balance between the training (initial and
continuing) proposed and the real needs of the economy.
4.4.4     Graduates who fail to find jobs in existing businesses could take advantage of the
support of the Employment and Entrepreneurship Promotion Institute to establish their own
ventures. In this regard, the Government also intends to create a Guarantee Fund to support loan
applications addressed to banks by young graduates wishing to set up their own businesses.

4.5       Risk Management
4.5.1     In addition to governance and sustainability, three major risks were identified in the
programme’s implementation. First, the low level of national skills and the sluggishness of
administrative services impede the implementation of scheduled activities within the set time
frame. For this reason, the programme made provisions for the recruitment of technical
assistance (chief technical coordinator, accountant, training specialist, acquisition expert, and
architect) to make up for the administrative weaknesses, avoid delays in activities, and transfer
skills to national counterparts.
4.5.2   Secondly, brain drain results from the fact that some teachers trained in France, Spain
and the USA may settle in those countries because the professional and remuneration conditions
are more attractive than in their country. In this case, the REG will not only lose its investment in
education and the skills of those trained, but it will also be deprived of their contribution to
economic productivity.
                                                15

4.5.3    Third, the programme runs the risk of losing some teachers of the vocational training
sector trained abroad who, on their return, are attracted by salaries paid in the private sector,
particularly in the hydrocarbons activity. These last two risks will be mitigated by the fact that
the Government has instituted the isolation allowance to maintain primary and secondary school
teachers in the teaching profession. It also intends to provide incentives for PPI teachers in terms
of free accommodation. The salaries of EUAPEF lecturers will be increased because their
professional qualifications will be aligned to international standards.

4.6      Knowledge Development

        The preparation of training programmes entails an in-depth analysis of occupations and
the knowledge one has of them in the Equato-Guinean context. Furthermore, the survey to be
conducted on graduates from these institutions will contribute to better analyzing the balance
between training and employment. This knowledge will be disseminated at national level
through seminars and forums, and will serve as basis for the improvement of future training
programmes.

V.       LEGAL FRAMEWORK

5.1      Legal Instrument

       The proposed intervention instrument is an ADB loan of UA 40 million to the
Government of the Republic of Equatorial Guinea.

5.2      Conditions for Bank Intervention

          Conditions Precedent to Effectiveness of the Loan Agreement: The Government shall
fulfil the conditions applicable to Loan Agreements and Guarantee Agreements that define the
terms and conditions as well as the standard principles governing financing by the African
Development Bank Group.

        Conditions Precedent to the First Disbursement: Furthermore, prior to the first
disbursement of the ADB loan, the Government shall fulfil the following conditions:

         (i)    Open two accounts in a commercial bank in Malabo, deemed acceptable by the
                African Development Bank, to receive ADB resources and the government’s
                counterpart funds ;

         (ii)   Provide evidence of the designation of the Department of Higher Education and
                Research as the Executing Agency of the Training Programme for Middle and
                Senior Executives and the appointment of the Director of Higher Education and
                Research as Programme Coordinator.
                                              16

Other Conditions

        (i)   Provide evidence of the appointment of members of the Steering Committee of
              the Programme comprising six representatives of the administration (Ministries of
              Education, Labour, Finance, Agriculture, Tourism and Mines), three
              representatives of the private sector (oil and tourism businesses, the Chamber of
              Commerce, Industry and Agriculture), two civil society representatives (a leader
              of women’s groupings and a teacher) and a representative of the UNDP Office in
              Malabo.

5.3     Compliance with Bank Policies

        This programme is consistent with all relevant Bank policies.

VI.     RECOMMENDATION

         Management recommends that the Board of Directors should approve the proposed loan
of UA 40 million to the Government of Equatorial Guinea for the purpose and in accordance
with the conditions mentioned in this report.
Appendix I
                                                                                      Appendix II
                            Table of ADB Portfolio in the Country

1.       At present, the Bank has no ongoing project in the Republic of Equatorial Guinea. The
three operations financed by the Bank during recent years are: (a) Health System Development,
(b) Poverty Reduction, and (c) Building the Institutional Capacities of the Ministry of Planning.
All three projects have been concluded.

2.       However, the Bank maintained sustained dialogue with the national authorities. For
example, it supported the preparatory process of the National Economic and Social Development
Programme (NESDP) and gave practical advice to the Government with respect to its
operationalization. It insisted on the need to prepare an action plan for the implementation of
NESDP and mobilized a top-level expertise to prepare a request for a grant in support of the
NESDP action plan’s set-up process.
                                                                                      Appendix III
         Key related projects financed by other development partners of the country
Donor            Intervention                                        Cost
Spain            Project in support of the education system reform– EUR 175 000
                 Prepare and adapt the Baccalaureate curricular content

                 Project to strengthen the public education system-
                 primary, secondary education and vocational training EUR 3 005 060

                 Support to Spanish schools in Malabo and Bata

                 Cooperation and university development programme    EUR 1 275 699.91

                 Programme for the permanent capacity building and EUR 199 800
                 retraining of the teaching staff

                 Programme for capacity building of non-graduate EUR 35 265
                 teachers

                                                                     EUR 40 000
France           Support for the dissemination of French             EUR 750 000

                 Media development support project
                 Centre culturel français

                 University cooperation                        Total
                                                               EUR 1 427 676
Amerada          Programme for the development of education in USD 40 000 000
HESS             Equatorial Guinea (PRODEGE)                   Government : 50%
                                                               HESS : 50%
                          Appendix IV
Map of the Project Area
TECHNICAL ANNEXES

          The technical annexes of the report are available on request. They are also published in
the DARMS system at the following address:
http://darms.afdb.org/Oclient/DocContent.aspx?Library=deptlib^idmdsprd&Id=003909488&Obj
Type=2&Op=Open
                          REPUBLIC OF EQUATORIAL GUINEA

        TRAINING PROGRAMME FOR MIDDLE AND SENIOR EXECUTIVES

                                   TECHNICAL ANNEXES

A.1     EQUATORIAL GUINEA 2020 – AGENDA FOR DIVERSIFICATION OF
        SOURCES OF GROWTH

STRATEGIC AREA 2: STRENGHTENING HUMAN CAPITAL

         The achievement of Equatorial Guinea 2020 Vision requires the involvement of all
citizens. This calls for the preparation of human capital development programme which
comprises four strategic objectives in the field of education and training.

Objective 1    :    Extending school coverage to all levels

         Through this objective, the country aims to first achieve 100% of gross enrolment ratio
(GER) at preschool and primary levels. With regard to preschool, it is necessary to conduct a
preliminary analysis of the social demand and infrastructure needs of areas and communities. As
regards access to primary education, efforts must essentially focus on setting up a school map
meeting the needs of each geographical area. This work must be performed with the full
involvement of local communities, mobilization and involvement of the private sector,
involvement of people of goodwill in funding school facilities, strengthening the free and
compulsory nature of public education at primary level, and opening of school canteens
subsidized by the Government.

         This strategic objective also aims to increase the net enrolment ratio (NER) in
secondary schools to 98%. As a result, several actions must be undertaken including: (i) turning
educational centres into attractive environments and (ii) developing awareness programmes for
parents and guardians on the benefits of education for all children, focusing on girls' education.

Objective 2    :    Improving the quality of education at all levels

         Through this objective, the Government first seeks to bring to 100 % the percentage of
qualified teaching staff. To this end, the main actions to undertake include (i) setting-up a
committee for the design and updating of curricula and teaching material, (ii) training of teachers
on the proper use of new teaching materials resulting from the reform, (iii) creating vocational
training centres for teachers in provincial and district capitals, (iv) training the directors of
education centres on planning and management techniques, ( v) establishing objective criteria to
improve the teacher recruitment mechanism, (vi) setting up a Department for the training and
upgrading of the teaching staff, (vii) using active school experiences, (viii) planning the
introduction of ICT at all levels, (ix) setting-up mechanisms for economic and social incentives
for teachers in order to raise their status, including the provision of accommodation.
                                                2


In addition, the Government seeks to improve the qualifications of officials of the Ministry of
Education in order to successfully complete the process mentioned above and implement the
guidelines listed on the school map.

Objective 3    :    Eliminating geographical and gender disparities for equitable access to
                    education and training

         Through this objective, the Government seeks to reduce children’s school failure at
primary and secondary levels, and increase the percentage of young girls completing their
studies. First, keeping girls in the primary and secondary educational system will only be
possible by: (i) intensifying awareness campaigns on sexual education and reproductive health of
adolescents to prevent unwanted pregnancy and induced abortions, (ii) implementing initiatives
aimed at improving the academic performance of children in school failure situation and (iii)
implementing a specific programme to train teachers in all disciplines.

         Secondly, the main actions undertaken to increase the percentage of young girls who
complete their higher education include: (i) defining a scholarship and incentive policy for
teachers and students with objective criteria, (ii) guaranteeing girls’ feeding and health control:
school canteens, access to water and sanitation, pharmacy kit, periodic medical examinations.

Objective 4    :    Adapting technical, professional and academic training to the needs of
                    labour market

         Through this objective, the Government wishes to extend technical and vocational
training to the seven provincial capitals and increase the gross enrolment ratio at the higher
education level to 75 %.

         To strengthen technical and vocational training, there are plans to conduct market
research studies to determine the current and future needs of professions. These studies will be
conducted in the light of the ambitious "Equatorial Guinea 2020" project in the production sub-
sectors (oil and its by-products, hydroelectric power, aquaculture, tourism, construction, etc.).
The technical and vocational training programmes should be geared to meet the demand in these
sectors. The establishment of the Technical and Vocational Training Centre, attached to the
Ministry of Education, the building of specialized centres, as well as the training of the teaching
staff contribute to achieving this objective.

         The availability of senior executives and technicians as a national priority in the coming
years requires the following actions: (i) construction and equipment of a university complex with
the extension of the Faculty of Medicine through the opening of a Faculty of Pharmacy and
Biomedical Science, the creation of a Faculty of Administration and Law, the strengthening of
existing units.
                                                 3

A.2      SITUATIONAL ANALYSIS (Extract from Economic Perspective in Africa 2008,
         ADB/OECD)

          The public system of vocational and technical training suffers from a lack of structures
and organization. Only two training centres, with inadequate infrastructure, exist in the country.
These include Modest Gene Roz, located in Bata, and 12 October, located in Malabo. Both
institutions represent the entire national potential in terms of public technical and professional
education. They offer few specialties in relation to the economic needs. Modeste Gene Roz
Centre of Bata is the largest in terms of the number of trainees and supervision. It enrolled 705
trainees during the 2006-2007 academic year, divided into several sectors: administration, auto
mechanics, electricity, carpentry.

          The 12 octobre centre, which is smaller and very recent, is located in Malabo, the
capital, and is inadequately endowed with equipment and qualified trainers. Despite the novelty
of its environment, the situation is deplorable, which deprives the young population of an
important training space to prepare them for the working environment.

         In both centres, training is divided into three levels. The primary level, dubbed
Officialia, provides three years of theoretical and practical studies. The second level, Maestria, is
a vocational training; it also provides three years of studies to get a professional master's degree.
The year-long third level is a step towards vocational training for trainees from the general
education system. This is the CAT level: Curso Acceso Technico

         The private vocational training sector is quite new in Equatorial Guinea. The few
schools offer training for secretaries and data entry operators. Vocational training is an important
part of the National Plan for the Development of Education for All (EFA), which is an integral
part of the Strategic Education Programme in Equatorial Guinea, whose implementation
concerns all social groups in the country. The National Economic Conference, held in November
2007, considered vocational training as a priority area for State intervention as part of its Poverty
Reduction Strategy Paper (PRSP).

          There are no clear statistics on the level of employment in the country, or on the extent
of unemployment among the working population. Equatorial Guinea, like most African countries
where the rate of young population exceeds 60 % of the total population, is confronted with a
relatively high unemployment rate, which is more acute in large cities, as a result of rural
depopulation.

          The current training does not meet today’s labour market needs. The surveys conducted
among businessmen are inclined to consider that unemployment in Equatorial Guinea is more
related to low-skilled workforce than to lack of job offer. There is a gap between business needs
and available skills. Indeed, the Employment Act promotes the priority recruitment of national
labour: at least 65 % of professionals recruited must be Equatorial Guineans; the proportion is
even higher for non-professionals. This recruitment must be accompanied, if necessary, by
refresher training, which is unfortunately not always sufficient to provide the required skills.
Many companies deplore the difficulty to meet recruitment quotas for nationals for lack of
available expertise.
                                                  4


         The discrepancy between labour supply and demand is partly remedied by the use of
foreign labour. The migration policy can therefore be a strategic lever to better regulate the
labour market.

         The government has undertaken a major reform of the vocational and technical training
sector, adopted by Cabinet, and whose implementation was scheduled for 2008. The reform
focuses on three points: i) modernizing training equipment, ii) strengthening supervision iii)
increasing and diversifying training fields.

         With regard to modernization, the government has submitted tenders for the renewal
and purchase of new equipment for both training centres. In addition to the machines, officials
are considering introducing efficient teaching materials, including computers and audiovisual
aids. Supervision is another public priority. Scholarships have been granted for the training of
teachers specializing in specific fields, in conjunction with French and Spanish cooperation.

          Finally, the officials have planned to introduce new courses, in line with the changing
labour market and the growing demand of domestic and foreign companies operating in the
territory: building plan, turner, accounting and inventory management, industrial maintenance.

         The financing of the vocational training sector falls within the jurisdiction of public
authorities, but the amount allocated is a small part of the budget of the Ministry of Education,
less than 5 % in recent years.

        Some economic sectors are involved in the effort to finance vocational training. Thus,
the government has decided, by a 2004 Decree, to set up a Petroleum Technology Institute co-
managed with the private sector.

          Beyond this initiative, the issue of vocational training arises in all sectors, and is
particularly critical in areas proposed for the diversification of the economy: fisheries and
aquaculture, finance, tourism, agriculture. Diversification will not be possible without skilled
labour. It will therefore be essential to focus full attention to the identification of the vocational
training needs. Several donors, such as UNESCO, ILO, Spanish or French cooperation are co-
financing some projects, as part of bilateral or multilateral cooperation actions with the
government or the private sector. The major challenge as regards employment arises at the level
of vocational training if one wants to ensure a better balance between the needs of business and
skills available on the market.

        The training sector has still not been provided with sufficient equipment and
supervisory staff, and its upgrading remains vital to support the country’s socio-economic
development and allow for the development of many economic sectors.
                                                 5

B1.     DETAILED DESCRIPTION OF PROGRAMME ACTIVITIES

1.        The activities of the programme are included in three components: (i) improvement of
the training offer, (ii) capacity building and (iii) programme management.

Component I: Improving the training offer

        (ii)   This component is designed to diversify the training offer of middle executives in
               the provincial polytechnic institutes. It also seeks to increase the number of senior
               executives from EUAPEF and improve the quality of training provided by this
               institution.

        A.     Provincial polytechnic institutes (PPI)

        (iii) The programme will build and equip five provincial polytechnic institutes (PPI) in
              Luba, Bata, Ebebiyin, Mongomo and Evinayong with a capacity of about 4,000
              physical spaces. The choice of these sites is based on three criteria, namely the
              demographic weight of the locality, the current economic activity and the
              immediate economic potential. Each PPI will have three distinct areas: a trainer’s
              accommodation area, a trainee’s accommodation area and a teaching area
              composed of classrooms and technical workshops. The architectural studies, the
              monitoring and control of work, as well as the definition and technical
              specification of equipment per centre and per sector will be provided by design
              offices.

        (iv) Training programmes will be structured around eight sectors (Oil
             Extraction/Petrochemistry, building and civil engineering works, agriculture,
             fisheries, livestock, forestry, Technology and Tertiary) and 42 sectors (see Annex
             3), designed in a modular manner and mainly directed towards the acquisition of
             skills and vocational abilities. The DGESR will hire a design office with high
             competence and proven experience in developing business baseline and institutes’
             training programmes. Professionals will be involved in the design of training
             programmes to ensure that their qualification requirements are integrated and that
             trainees are recognized by the economic circles. Finally, training programmes
             prepared by the design office must be validated by the Government before the
             opening of provincial polytechnic institutes.

        (v)    The design office that will develop training programmes will also be responsible
               for developing documentation systems (teaching guides, pedagogical and material
               organization, as well as evaluation), courses and guided studies (TD) and practical
               work (TP). Finally, it will propose to the Government a programme for
               administrative and pedagogical organization and management of provincial
               polytechnic institutes. For the effectiveness of the PPI management, the
               Government should opt for the joint management of these structures with the
               private sector or management delegated to religious congregations, whose
               performance in the education sector is, on the whole, highly valued in the country.
                                                6


        B.    University Institute of Agriculture, Fisheries and Forestry

        (vi) In a bid to expand and improve the training offer of the University Institute of
             Agriculture, Fisheries, Livestock and Forestry Studies, the programme will
             finance the development and equipment of five chemical, biological,
             microbiology, geological, physical and language laboratories, and a computer
             room. The construction works of these premises will also be entrusted to the
             company in charge of building the provincial polytechnic institute of Luba.

Component II: Capacity building

        (vii) This component aims to strengthen the institutional capacities of the Department
              of Planning and Educational Programmes (DGPPE) so that this structure can
              adequately ensure the collection, processing, analysis and dissemination of
              statistical data necessary to the planning and management of the educational
              system and monitoring/evaluation of the programme's activities. It also supports
              the National Institute for the Promotion and Development of Entrepreneurship
              (INPYDE), will train teachers intervening in the technical fields of provincial
              polytechnic institutes and improve the level of qualification of EUAPEF teachers.

        A.    Department of Planning and Educational Programmes

        (viii) The programme will recruit six baccalaureate holders and finance their training in
               statistics over a two-year period in a provincial institute. Following this training,
               the two best statistics technicians will benefit from a year-long training in
               planning at the International Institute for Educational Planning (IIEP) of Paris.
               The programme also will hire technical assistance (a statistical engineer and an
               educational planner) for three years to support the DGPPE in the production of
               statistical yearbooks and the conduct of planning and prospective studies. Finally,
               it will provide the DGPPE with computer equipment (computers, printers,
               stabilizers, projectors and software), office equipment (photocopiers, scanners and
               fax) and furniture.

        B.    National Institute for the Promotion and Development of Entrepreneurship

        (ix) A consultant, specialist in institutional development will be recruited for a period
             of five months within two years to assist the National Institute for the promotion
             and development of entrepreneurship in establishing an effective mechanism for
             the promotion of small and medium enterprises. This support is justified by the
             fact that the PPI trainees who settle as self-employed workers will need the
             support of the Institute for the design and set-up of application for the funding of
             their corporate projects by local commercial banks.

        C.    Training of trainers

        (x)   The programme will finance the training of trainers of provincial polytechnic
              institutes (see Annex 4) and the University Institute of Agriculture, Fisheries,
                                              7

            Livestock and Forestry. On the basis of the working time, 81 PPI technical
            trainers will pursue a language, educational and technical training of two to two
            and a half years in specialized institutions in France, Spain and Africa. Candidates
            for training will at least be a baccalaureate holder and will be selected on the basis
            of their curriculum vitae and tests or interviews by a jury composed of
            representatives of MESS, the Trainees Training Centre and the local UNDP
            office.

       (xi) Then, 12 out of 19 permanent teachers (or 63.15%) that currently teach at the
            EUAPEF will undergo training for a Master’s Degree in universities in Spain and
            France and the USA as part of the partnership agreements with the National
            University of Equatorial Guinea. The selection of candidates for training will be
            based on academic level, permanent employee status and seniority.

       (xii) Finally, three secondary education inspectors will be trained on the supervision of
             technical and vocational education. This training is meant to ensure better control
             of the quality of teaching activities of the provincial polytechnic institutes.

Component III: Programme management

       (xiii) The programme implementing agency will benefit from human, financial and
              material resources required for its effective functioning. To this end, the
              programme will take care of its current expenditure (management staff allowance,
              wages of technical assistance, contracting, insurance and maintenance of three
              vehicles, purchase of office supplies, communication and forwarding charges by
              DHL and by mail, Internet subscription, etc.)..

       (xiv) The programme will also finance the purchase of computer and office equipment,
             the establishment of computerized accounting management system, the
             programme launching workshop, steering committee meetings, the programme’s
             mid-term review and annual audits by an independent cabinet, trips of the DGESR
             staff at the Bank’s headquarters and the preparation of the completion report by
             the Government.
                                                                                         8

          B2.                ITEMIZED PROJECT COSTS
                                                                         Table 1: Itemized project costs
                                                             COMPONENT I. IMPROVING THE TRAINING OFFER
                                                                                                  Costs
Itemized costs                              Quantities                                            Unit     Overall cost (mil. CFAF)
                                                                                                  (mil.
                             Unit           2009         2010    2011      2012   2013   Total    CFAF)    2009         2010          2011       2012    2013   Total

I. Investment costs
A. Works
PPI Louba                    m2             -            5 500   6 500     -      -      12 000   0.8      -            4 400,0       5 200,0    -       -      9 600,0
PPI Bata                     m2             -            4 000   6 000     -      -      10 000   0.8      -            3 200,0       4 800,0    -       -      8 000,0
PPI Ebebiyin                 m2             -            2 000   3 000     -      -      5 000    0.8      -            1 600,0       2 400,0    -       -      4 000,0
PPI Mongomo                  m2             -            2 000   3 000     -      -      5 000    0.8      -            1 600,0       2 400,0    -       -      4 000,0
PPI Evinayong                m2             -            2 000   3 000     -      -      5 000    0.8      -            1 600,0       2 400,0    -       -      4 000,0
Rehabilitation laboratory
University EUAPF /a          square metre   -            480     -         -      -      480      0.5      -            240,0         -          -       -      240,0
Sub-total Works                                                                                            -            12 640,0      17 200,0   -       -      29 840,0
B. Property
1. Vehicle
Double cabin for PPI         unit           -            -       5         -      -      5        25       -            -             125,0      -       -      125,0
2. Equipment
PPI Louba                    package        -            -       1         -      -      1        2,100    -            -             2 100,0    -       -      2 100,0
PPI Bata                     package        -            -       1         -      -      1        1,700    -            -             1 700,0    -       -      1 700,0
PPI Ebebiyin                 package        -            -       1         -      -      1        800      -            -             800,0      -       -      800,0
PPI Mongomo                  package        -            -       1         -      -      1        800      -            -             800,0      -       -      800,0
PPI Evinayong                package        -            -       1         -      -      1        800      -            -             800,0      -       -      800,0
Equipment    University
EUAPF                        package                                                                       30,0         -             -          -       -      30,0
Sub-total Equipment                                                                                        30,0         -             6 200,0    -       -      6 230,0
3. Furniture
PPI Louba                    package        -            -       1         -      -      1        735      -            -             735,0      -       -      735,0
PPI Bata                     package        -            -       1         -      -      1        595      -            -             595,0      -       -      595,0
PPI Ebebiyin                 Package        -            -       1         -      -      1        280      -            -             280,0      -       -      280,0
PPI Mongomo                  package        -            -       1         -      -      1        280      -            -             280,0      -       -      280,0
PPI Evinayong                package        -            -       1         -      -      1        280      -            -             280,0      -       -      280,0
Sub-total Furniture                                                                                        -            -             2 170,0    -       -      2 170,0
Sub-total Property                                                                                         30,0         -             8 495,0    -       -      8 525,0
C. Services
1. Technical Assistance
Supervision study PPI
Bioko                        package                                                                       960,0        -             -          -       -      960,0
Supervision study PPI
Bata                         package                                                                       800,0        -             -          -       -      800,0
Supervision study PPI
Ebebiyin                     package                                                                       400,0        -             -          -       -      400,0
Supervision study PPI
Mongomo                      package                                                                       400,0        -             -          -       -      400,0
Supervision study PPI
Evinayong                    package                                                                       400,0        -             -          -       -      400,0
Referential    curricula
design                       h/m            42           -       -         -      -      42       6        252,0        -             -          -       -      252,0
Sub-total        Technical
Assistance                                                                                                 3 212,0      -             -          -       -      3 212,0
2. Training
Merit scholarships for
girls                        pers           -            -       -         30     30     60       0.05     -            -             -          1,5     1,5    3,0
Sub-total Services                                                                                         3 212,0      -             -          1,5     1,5    3 215,0
Total Investment Costs                                                                                     3 242,0      12 640,0      25 695,0   1,5     1,5    41 580,0
II. Recurrent costs
A. Operation
1.       Upkeep     &
Maintenance
PPI Louba                    package                                                                       -            110,0         240,0      130,0   -      480,0
PPI Bata                     package                                                                       -            80,0          200,0      120,0   -      400,0
PPI Ebebiyin                 package                                                                       -            40,0          100,0      60,0    -      200,0
PPI Mongomo                  package                                                                       -            40,0          100,0      60,0    -      200,0
PPI Evinayong                package                                                                       -            40,0          100,0      60,0    -      200,0
Car insurance                package/year   -            -       -         5      5      10       6.5      -            -             -          32,5    32,5   65,0
Car fuel                     package/year   -            -       -         5      5      10       3.6      -            -             -          18,0    18,0   36,0
Sub-total Upkeep        &
Maintenance                                                                                                -            310,0         740,0      480,5   50,5   1 581,0
2. Allowance
Driver PPI                   h/m            -            -       -         5      5      10       0.2      -            -             -          1,0     1,0    2,0
Total Recurrent costs                                                                                      -            310,0         740,0      481,5   51,5   1 583,0
Total                                                                                                      3 242,0      12 950,0      26 435,0   483,0   53,0   43 163,0
                                                                              9


                                                            COMPONENT II : CAPACITY BUILDING
                                                                                             Unit
                                                                                             cost
Itemized costs                                                                               (mil.   Overall cost (mil. CFAF)
                                    Unit        2009   2010     2011   2012   2013   Total   XAF)    2009         2010     2011   2012   2013   Total

 I. Investment costs
A. Property
1. Equipment
Micro-computer - DGP                unit        8      -        -      -      -      8       1       8,0         -        -       -      -      8,0
Printer - DGP                       unit        2      -        -      -      -      2       0.8     1,6         -        -       -      -      1,6
Photocopying machine - DGP          unit        2      -        -      -      -      2       2       4,0         -        -       -      -      4,0
Inverter – DGP                      unit        8      -        -      -      -      8       0.5     4,0         -        -       -      -      4,0
Fax - DGP                           unit        1      -        -      -      -      1       0.5     0,5         -        -       -      -      0,5
Scanner - DGP                       unit        1      -        -      -      -      1       0.5     0,5         -        -       -      -      0,5
Sub-total Equipment                                                                                  18,6        -        -       -      -      18,6
2. Furniture
Workstation (Furniture) - DGP
/a                                  unit        8      -        -      -      -      8       1.5     12,0        -        -       -      -      12,0
Sub-total Property                                                                                   30,6        -        -       -      -      30,6
B. Services
1. Training
Training of 4 teachers in Spain     people      4      4        -      -      -      8       22.2    88,8        88,8     -       -      -      177,6
Training of 2 teachers in Cuba      people      2      2        -      -      -      4       22.2    44,4        44,4     -       -      -      88,8
Training of 2 teachers in the
USA                                 people      2      2        -      -      -      4       22.2    44,4        44,4     -       -      -      88,8
Training of 4 teachers in France
- Bordeaux I                        people      4      4        -      -      -      8       22.2    88,8        88,8     -       -      -      177,6
Training of PPI trainers in
France                              people      3      3        3      -      -      9       22.2    66,6        66,6     66,6    -      -      199,8
Training of education planners
in France /b                        people      -      -        2      -      -      2       22.2    -           -        44,4    -      -      44,4
                                                                                                                 1        1
Training of PPI trainers in Spain   people      53     53       53     -      -      159     22.2    1 176,6     176,6    176,6   -      -      3 529,8
Training of PPI trainers in                                                                                      1        1
Afrique                             people      54     54       54     -      -      162     22.2    1 198,8     198,8    198,8   -      -      3 596,4
Training of 6 statisticians /c      people      6      6        -      -      -      12      22.2    133,2       133,2    -       -      -      266,4
Training of 3 Inspectors /d         people      6      6        -      -      -      12      22.2    133,2       133,2    -       -      -      266,4
                                                                                                                 2        2
Sub-total Formation                                                                                  2 974,8     974,8    486,4   -      -      8 436,0
2. Technical assistance
Planner - DGP                       man-month   12     12       12     -      -      36      6       72,0        72,0     72,0    -      -      216,0
Statistician - DGP                  man-month   12     12       12     -      -      36      6       72,0        72,0     72,0    -      -      216,0
Specialist      in  institutional
development (SME)-INPYDE
/e                                  man-month   3      1        -      -      -      4       6       18,0        6,0      -       -      -      24,0
Production of school directories
/f                                  man-month   3      1        -      -      -      4       43.7    131,1       43,7     -       -      -      174,8
Sub-total Technical Assistance                                                                       293,1       193,7    144,0   -      -      630,8
                                                                                                                 3        2
Sub-total Services                                                                                   3 267,9     168,5    630,4   -      -      9 066,8
                                                                                                                 3        2
Total Investment costs                                                                               3 298,5     168,5    630,4   -      -      9 097,4
II. Recurrent Costs
A. Operation
Maintenance equipment               package                                                          0,5         0,5      0,5     -      -      1,4
Total Recurrent Costs                                                                                0,5         0,5      0,5     -      -      1,4
                                                                                                                 3        2
Total                                                                                                3 299,0     169,0    630,9   -      -      9 098,8
                                                                                    10



                                                       COMPONENT III : PROGRAMME MANAGEMENT
                                                                                                        Unit
                                                                                                        cost
Itemized costs                                          Quantities                                      (mil.   Overall cost (mil. CFAF)

                                        Unit            2009     2010   2011   2012      2013   Total   CFAF)   2009     2010       2011    2012    2013    Total

 I. Investment costs
A. Property
1. Vehicle
Vehicle 4X4                             unit            2        -      -      -         -      2       25      50,0     -          -       -       -       50,0
Utility car                             unit            1        -      -      -         -      1       15      15,0     -          -       -       -       15,0
Sub-total Vehicle                                                                                               65,0     -          -       -       -       65,0
2. Equipment
Micro-computer - UGP                    unit            11       -      -      -         -      11      1       11,0     -          -       -       -       11,0
Printer- UGP                            unit            2        -      -      -         -      2       0.8     1,6      -          -       -       -       1,6
Inverter - UGP                          unit            11       -      -      -         -      11      0.5     5,5      -          -       -       -       5,5
Photocopying machine - UGP              unit            2        -      -      -         -      2       2       4,0      -          -       -       -       4,0
Sub-total Equipment                                                                                             22,1     -          -       -       -       22,1
3. Furniture
Work station(Furniture) - UGP /a        unit            11       -      -      -         -      11      1.5     16,5     -          -       -       -       16,5
Meeting room (Furniture) - UGP /b       unit            1        -      -      -         -      1       10      10,0     -          -       -       -       10,0
Sub-total Furniture                                                                                             26,5     -          -       -       -       26,5
Sub-total Property                                                                                              113,6    -          -       -       -       113,6
B. Services
1. Technical assistance
CTP                                     man-month       12       12     12     12        12     60      7       84,0     84,0       84,0    84,0    84,0    420,0
Training specialist                     man-month       12       12     12     12        12     60      6       72,0     72,0       72,0    72,0    72,0    360,0
Acquisition specialist                  man-month       12       12     12     12        12     60      6       72,0     72,0       72,0    72,0    72,0    360,0
Accounting specialist                   man-month       12       12     12     12        12     60      6       72,0     72,0       72,0    72,0    72,0    360,0
Architect                               man-month       12       12     12     12        -      48      6       72,0     72,0       72,0    72,0    -       288,0
Audit                                   man-month       2        2      2      2         2      10      6       12,0     12,0       12,0    12,0    12,0    60,0
Mid-term evaluation                     man-month       -        -      2      -         -      2       6       -        -          12,0    -       -       12,0
Survey among businesses on the
effects of the training                 package         -        -      -      1         -      1       15      -        -          -       15,0    -       15,0
Completion report                       man-month       -        -      -      -         2      2       6       -        -          -       -       12,0    12,0
Monitoring-evaluation specialist        man-month       2        -      3      -         3      8       6       12,0     -          18,0    -       18,0    48,0
Establishing     the     computerized
accounting system                       man-month       4        -      -      -         -      4       6       24,0     -          -       -       -       24,0
Sub-total Technical assistance                                                                                  420,0    384,0      414,0   399,0   342,0   1 959,0
Total Investment costs                                                                                          533,6    384,0      414,0   399,0   342,0   2 072,6
II. Recurrent Costs
A. Operation
1. Allowances
Coordinator                             man-month       12       12     12     12        12     60      1       12,0     12,0       12,0    12,0    12,0    60,0
Training counterpart                    man-month       12       12     12     12        12     60      0.75    9,0      9,0        9,0     9,0     9,0     45,0
Acquisitions counterpart                man-month       12       12     12     12        12     60      0.75    9,0      9,0        9,0     9,0     9,0     45,0
Counterpart accountant                  man-month       12       12     12     12        12     60      0.75    9,0      9,0        9,0     9,0     9,0     45,0
Civil Engineer                          man-month       12       12     12     12        12     60      0.75    9,0      9,0        9,0     9,0     9,0     45,0
Administrative Assistant                man-month       12       12     12     12        12     60      0.5     6,0      6,0        6,0     6,0     6,0     30,0
Driver                                  man-month       36       36     36     36        36     180     0.2     7,2      7,2        7,2     7,2     7,2     36,0
Sub-total Allowances                                                                                            61,2     61,2       61,2    61,2    61,2    306,0
2. Operating costs
Communication                           package/year    2        2      2      2         2      10      3.6     7,2      7,2        7,2     7,2     7,2     36,0
Fuel                                    package/year    2        2      2      2         2      10      3.6     7,2      7,2        7,2     7,2     7,2     36,0
Insurance                               package/year    2        2      2      2         2      10      6.5     13,0     13,0       13,0    13,0    13,0    65,0
Meeting of the Steering Committee       session                                                                 5,0      -          -       -       -       5,0
Maintenance vehicle                     package/year                                                            1,6      1,6        1,6     1,6     1,6     8,1
Project launching workshop              session         1        -      -      -         -      1       5       5,0      -          -       -       -       5,0
Trip to the ADB head office             session         2        -      2      -         2      6       3       6,0      -          6,0     -       6,0     18,0
UGP Supervision - CTP                   people          36       36     36     36        36     180     0.098   3,5      3,5        3,5     3,5     3,5     17,6

UGP Supervision - Counterpart CTP /c    people          72       72     72     72        72     360     0.098   7,0      7,0        7,0     7,0     7,0     35,1
UGP Supervision - Architect /d          people          36       36     36     36        36     180     0.098   3,5      3,5        3,5     3,5     3,5     17,6
UGP Supervision - CEng /e               people          36       36     36     36        36     180     0.015   0,5      0,5        0,5     0,5     0,5     2,7
UGP Supervision /f                      people          72       72     72     72        72     360     0.098   7,0      7,0        7,0     7,0     7,0     35,1
UGP Supervision - Driver /g             people          180      180    180    180       180    900     0.005   0,9      0,9        0,9     0,9     0,9     4,5

Sub-total Operating costs                                                                                       67,5     51,5       57,5    51,5    57,5    285,6
Total Recurrent Costs                                                                                           128,7    112,7      118,7   112,7   118,7   591,6
Total                                                                                                           662,3    496,7      532,7   511,7   460,7   2 664,2
                                                                                   11


                       Table 2: Allocation of Costs per category of expenditure and per source of financing

                               (mil. CFAF)                                                  (mil. UA)

                               ADB                   Government         Total               ADB                 Government       Total

                               Amount        %       Amount     %       Amount      %       Amount      %       Amount   %       Amount   %



Investment costs

A. Property

Vehicle                        214.8         100.0   -          -       214.8       0.3     0.3         100.0   -        -       0.3      0.3

Equipment                      6.925.3       100.0   -          -       6.925.3     11.1    10.1        100.0   0.0      -       10.1     11.1

Furniture                      2.438.5       100.0   0.0        -       2.438.5     3.9     3.6         100.0   0.0      -       3.6      3.9

Sub-total Property             9.578.5       100.0   0.0        -       9.578.5     15.3    14.0        100.0   0.0      -       14.0     15.3

B. Works                       -             -       34.244.2   100.0   34.244.2    54.9    -           -       50.0     100.0   50.0     54.9

C. Services

Training                       9.556.5       100.0   0.0        -       9.556.5     15.3    13.9        100.0   0.0      -       13.9     15.3

Technical assistance           6.528.7       100.0   0.0        -       6.528.7     10.5    9.5         100.0   0.0      -       9.5      10.5

Sub-total Services             16.085.2      100.0   0.0        -       16.085.2    25.8    23.5        100.0   0.0      -       23.5     25.8

Total Investment costs         25.663.7      42.8    34.244.2   57.2    59.908.0    96.0    37.4        42.8    50.0     57.2    87.4     96.0

II. Recurrent Costs

A. Operation

Allowances                     1.9           0.5     352.9      99.5    354.8       0.6     0.0         0.5     0.5      99.5    0.5      0.6

Operating costs                1.760.1       81.5    399.8      18.5    2.159.9     3.5     2.6         81.5    0.5      18.5    3.1      3.5

Total Recurrent Costs          1.762.1       70.1    752.7      29.9    2.514.7     4.0     2.6         70.1    1.0      29.9    3.6      4.0

Overall costs                  27.425.8      43.9    34.996.9   56.1    62.422.7    100.0   40.0        43.9    51.0     56.1    91.0     100.0




B3.               FINANCIAL MANAGEMENT AND DISBURSEMENT PROVISIONS

          The programme will have two accounts opened in a commercial bank deemed
acceptable by ADB, the first account to receive resources from the Bank and second account for
the government counterparty funds. The Bank proposed by the Borrower and accepted should
make an irrevocable commitment to the African Development Bank (i) to ensure that the funds
deposited in the special account will not, under any circumstances, be seized or frozen to pay the
amounts owed to the Bank by the Borrower or be the object of various collaterals, (ii) to issue
monthly statements of the special account and forward them to the Borrower, and (iii) provide
officials of the Bank and auditors appointed by the latter with documents relative to the Special
Account.

         The Special Account will be used only for the portion of the eligible expenditure
financed by the Bank. To back up the request for an initial advance or the request for
replenishment, the Borrower will present an annual budget and a provisional budget of the
programme’s activities for a period of six months maximum. The annual budget and the
programme of activities will be approved beforehand by the Bank.

          The Account will be replenished on condition that the last advance had been used and
evidence provided to the tune of at least 50% and that the preceding advances had been fully
justified. To ensure that the Special Account is replenished, the Borrower should forward to the
Bank a copy of the A1, A2 and A3 forms properly filled and, as the case may be, the following
supporting documents: (i) the supplier’s invoice or a properly completed receipt, (ii) a copy of
                                                      12

the purchasing contract or purchase order, (iii) a copy of the letter of credit, where appropriate,
(iv) proof of payment, (v) a dispatch document, where appropriate, (vi) a bank statement
showing the rate of exchange applied for the transaction.

         Direct payments will be made to firms, suppliers of goods, consultants or sub-
contractors operating within the framework of a contract for which the Bank would have stated
its non-objection. At their request, a mobilization advance could be paid to enable them to cover
manufacturing expenses or mobilization costs. This method of payment agreed by the Borrower
and the supplier should be supported by a contract performance security.

          The programme’s schedule of expenditure per component is as follows:

                                     Schedule of expenditure per component
      Components                             2009       2010        2011     2012     2013
      Improving the training offer           05.2       21.4        44.0     00.8     00.1
      Capacity building                      05.4       05.3        04.4     00.0     00.0
      Programme management                   01.0       00.8        00.9     00.8     00.8
      Overall baseline cost                  11.6       27.5        49.3     01.7     00.9

B4.       CONTRACTING PROVISIONS

          Contracting

          All acquisitions of goods and consultants’ services financed from the Bank’s resources
will follow the rules of procedures for the acquisition of goods or, as the case may be, its rules of
procedures for the use of consultants, with the help of the Bank’s standard bidding documents. The
Higher Education and Research Directorate (DGESR) of the Ministry of Education, Science and
Sports, also in charge of technical education, will be responsible for the acquisition of
goods/service contracts, consultants’ services, training and others.
                                                             13

Summary of contracting methods

Project categories
                                   [in millions of UA]
                                   ICB            NCB       Other*        Shortlist      Non financed by       Total
                                                                                         the Bank**
1. Civil engineering works
   1.1 Construction                [0.0] 49.7     []        []            []                                   [0.0] 49.7
   1.2 Rehabilitation              [0.0] 0.3      []        []            []                                   [0.0] 0.3
Sub-total                          []             []        []            []                                   [0.0] 50.0
2. Property
   2.1 Vehicle                     []             []        [0.3]         []                                   [0.3]
   2.2 Equipment                   []             []        [10.1]        []                                   [10.1] 0.0
   2.3 Furniture                   []             []        [3.6]         []                                   [3.6] 0.0
Sub-total                          []             []        [14.0]        []                                   [14.0] 0.0

[]                                 []                       []            [13.9]   0.0                         [13.9]   0.0
[]                                 []                       []            [9.3]    0.0                         [9.3]    0.0
[]                                 []                       []            [0.2]    0.0                         [0.2]    0.0
[]                                 []                       []            [23.4]   0.0                         [23.4]   0.0
3. Operating costs
   4.1 Operating costs             []             []        [2.6] 1.0     []                                   [2.6] 1.0
Sub-total                          []             []        [2.6] 1.0     []                                   [2.6] 1.0

TOTAL                              [0.0] 50.0     []        [16.6] 1.0    [23.4] 0.0                           [40] 51.0


* «Other » may mean limited international bidding (LIB), international shopping, mutual consent or direct labour.
** « None financed by the Bank »: means procurements financed by other financing sources and acquired on the basis of their own
procedures.
+ The figures in square brackets [ ] are amounts financed by the Bank Group.


♦          Goods

         Contracts for the acquisition of equipment meant for PPI and some departments of the
Education Ministry globally amounting to 10.1 million UA and estimated at over 1.50 million UA
will each be awarded according to international shopping procedures. The procurement of movables
for the same aforementioned structures of a total amount of 3.6 million UA and worth at least
0.1million UA and at most 0.25 million UA, will be based on the procedures defined in annex YYY
of this report. Since the equipment used by PPIs and UEAPF laboratories are very specific to
technical training centres, it was decided to resort to the international shopping method for their
acquisition. National and regional preference is thus not applicable.

♦          Consultancy services

         The acquisition of consultancy services to achieve technical and architectural studies of
PPI and EUAPEF, the referential design of curricula, production of school yearbooks and project
management will be conducted by consulting firms and individual consultants as part of
contracts estimated to 9.3 million UA. The consultant firm selection process will be done through
a shortlist and the evaluation method will be the one where the price is a selection factor.
However, for individual consultants, the selection process will be based on the Bank’s procedure
                                                14

for the selection of individual consultants. For contracts estimated at less than 350,000 UA
awarded to consulting firms and 100,000 UA awarded to individual consultants, the Borrower
may limit the publication of the call for expression of interest to national and regional
newspapers. However, any eligible consultant, whether regional or not, who wishes to provide
the requested services may express his/her desire to appear on the shortlist. With regard to
contracts estimated at more than 350,000 UA for consulting firms and 100,000 UA for individual
consultants, the contracting notice will be published in the UNDB.

♦        Training

         The acquisition of training services for the training of higher education and PPI
teachers will be made by universities and individual consultants under contracts estimated at
13.9 million UA. The selection process will be done through a shortlist. For contracts estimated
at less than 350,000 UC awarded to consultants and 100,000 UC awarded to individual
consultants, the Borrower may limit the publication of the notice to national and regional
newspapers. Yet, any eligible consultant, whether regional or not, who wishes to provide the
requested services can express his desire to appear on the shortlist.

♦        Operating costs

        The acquisition of elements that fall within the scope of the operating costs of an
amount estimated at 0.5 million UA will be done according to other procedures, as follows:

        Procedure            Works           Goods             Services   Maximum per   Maximum
                                                                            contract     in total
 Consultation of suppliers           Consumables, fuel,
 at the national level               raw materials
 Direct purchase                     Water,     electricity,
                                     communication

♦        General tender notice

         The general tender notice will be agreed with the Government of Equatorial
Guinea/Ministry of Education and will be published in UN Development Business newspaper,
after approval of the loan proposal by the Board of Directors.

♦        Review procedures

         The following documents are subject to the review and approval of the Bank prior to
their publication:   Specific tender notice,     Bidding documents or requests for proposal to
consultants,      Tender appraisal report or consultant proposal appraisal report, including
recommendations relating to contracting,      Draft proposed contracts if they are modified and
various contract proposals appearing in the bidding documents.

♦        A posteriori review

5.4.7  Contract for the supply of goods and works of an amount less than or equal to 100,000
UA will be approved by the implementing organs and reviewed by the ADB. The contracting
                                                 15

documents, including price inquiries, assessment work sheets and contracting, will be kept by the
implementing agency for periodic review by ADB supervision missions. The contracting audit
meant to verify whether contracting activities have been correct, will be carried out on the
occasion of the first supervision mission that follows the end of the contracting process.
However, the Bank reserves the right to conduct its contracting audit at any time during project
implementation process. This review will determine whether to make changes or improvements
to the measures taken for contracting. Every three months, the implementing agencies will
collect data on contracting and integrate them in detail in the project’s quarterly activity report to
be submitted to the ADB.

♦        Implementing Agency

          The Directorate of Higher Education and Research (DGESR) of the Ministry of
Education, Science and Sports, also in charge of technical education, will be responsible for the
acquisition of goods, consultant and training services. The resources, capacities, expertise and
experience of DGESR have been analyzed and deemed insufficient to undertake the contracting
activities required under the project/study. To remedy this shortcoming, a contracting agent will
be recruited.

♦        Contracting plan

         The Bank will examine the measures taken by the Borrower for contracting under the
contracting plan, to ensure compliance with the loan agreement and its rules in this area. The
contracting plan will cover an initial period of at least 18 months. The Borrower will update the
plan every year or as needed, but still during the 18 months following the project implementation
period. Any proposal to revise the contracting plan will be submitted to the Bank for prior
approval.

B5.      AUDIT PROVISIONS

         The Directorate of Higher Education and Research (DGESR) should keep the
programme’s books and prepare financial statements according to international standards and
generally accepted accounting practices. As a result, the programme will have an appropriate
accounting system and personnel with required skills in the field of financial management and
accounting. The Bank should make sure that the DGESR has an administrative and accounting
procedures manual as well as a strong internal control procedure.

         The programme’s accounts will be audited annually by qualified and independent
auditors in accordance with generally accepted standards in this area. The auditors should,
among others: (i) thoroughly assess the relevant documents and (ii) review the internal control
procedure in order to identify shortcomings and weaknesses that might affect the effectiveness of
programme management and formulate an opinion on the quality of financial statements. The
implementation of the recommendations made by the Bank following the annual audits will be
systematically monitored by the supervision missions.
                                                      16

        In addition to the annual audit of accounts, the Bank may request a specific audit of
statements of expenditure to be submitted for reimbursement or for reconstitution of the Special
Account.

B6.      ECONOMIC AND FINANCIAL ANALYSIS

         Two approaches seem to be appropriate to demonstrate the economic benefits expected
from the proposed investment: (i) external effectiveness in terms of relevance of Technical
Education and Vocational Training to the needs of the economy (expressed by the labour market
demand) and (ii) rate of return on investment in Technical Education and Vocational Training.
The first approach requires information on the employment rate of PPI graduates as well as the
productivity gain of enterprises resulting from a better qualification of employees while the
second approach (cost-benefit analysis) requires information on income in relation to the level
and types of training received.

         The evaluation team did not have access to detailed data that would have helped to carry
out a complete analysis. Indeed, accurate and recent information on employment and the labour
market are lacking and the data received from training institutions and some companies visited
and the Ministry did not allow for the isolation of expenses related to each of the specialties and
degrees. In addition, no labour market survey was available. On the basis of available data, the
team had to estimate current basic salaries for different types of employees.

         Therefore, the simplified formula (fast path method) used to calculate the Economic
                                      E (U ) − E (S )
Rate of Return is as follows: TRE =                   , where E(U) is the annual average salary fixed
                                      n[E (U ) + C ]
for a high school graduate; n is the maximum duration of training in PPI; and C the annual
training cost per student in the PPI. This method, which requires less data than the full model is
known to yield results comparable to the complete method.

                                                 Table 1
                                    Estimated economic rate of return
         Indication                                                            Value
         Annual average salary fixed for high school graduate (XAF)            4.579.200
         Annual average salary for a PPI graduate (XAF)                        5.495.040
         Duration of the initial training in the PPI                           2
         Annual training cost per student in the PPI (XAF)                     1.308.919

         Estimated rate of return (%)                                          7,8


         The project’s economic benefits consist, among others, of improving productivity by
increasing the quantity and quality of labour due to additional graduates and employees enjoying
continued training. The project will also contribute to diversifying sources of growth through the
provision of a skilled labour by other sectors (agriculture, fisheries, tourism and financial
services, etc.).
                                                     17

         The financial profitability of the project is assessed through standard indicators such as
the Internal Rate of Return (IRR/IRR) and the Net Present Value (NPV/NPV).

         In the absence of the exact number of graduates per field, the number of graduates per
year in initial training is estimated at about 700 while the number of executives enrolled in
continuing training in all PPI is thought to be about 2,000. It is also assumed that 60 % of
graduates will be employed by the oil sector and 40 % by other sectors. The productivity gain is
also expected to result in an annual wage increase of about 2 %, below the annual inflation
estimated at 4 % on average, during the project’s duration. The annual wage was estimated on
the basis of the salary scale recommended by Decision No.01/2007 issued by the Ministry of
Labour and Social Security. Meetings with employers and officials of institutions clearly indicate
that the demand for skilled labour is very strong as Guinean law requires that at least 90 % of
labourers and 65 % of professionals recruited by any employer should be Equatorial Guinean.
The annual charges after the project’s five years of implementation include recurrent costs and
valuation allowances for buildings and equipment. A 12 % discount rate was used.

                                                   Table 2
                                                Annual expenses
    Description                      UC                Quant Total           Observations
    Component 1
    Maintenance infrastructure       296.267.190      1      296.267.190     1% of overall        cost of
                                                                             constructions
    School manuals (6/students)      21744.48         5000   108.722.400     700 students enrolled in all
                                                                             PPI on average every year, 1
                                                                             manual lasts 3 years
    Teachers                         3.767.883        94     354.181.048     12 higher education+82 for
                                                                             PPI, annual salary
    Maintenance equipment            934.500.000      1      934.500.000     15% of overall equipment
                                                                             cost
    Consumables                      124.600.000      1      124.600.000     2% of equipment cost
    Water & electricity              62.300.000       1      62.300.000      1% of equipment cost
    Sub-total Component 1                                    1.880.570.638
    Component 2
    Production      of      school   30.000.000       1      30.000.000      Package
    directories (
    Maintenance of equipment                                 500.000         Package
    (DGP)
    Salary additional planning       3.767.883        6      22.607.301      722 USD /annum
    personnel
    Sub-total Component 2                                    53.107.301
    Overall total (recurrent                                 1.933.677.939
    charges) exclud. valuation
    allowance
    Valuation allowance buildings    1.185.068.760    1      1.185.068.760   1/25 building cost
    Valuation           allowance    415.333.333      1      415.333.333     1/15 equipment cost
    equipment
    Overall Total plus valuation                             3.534.080.033
    allowance


         Annual repayments were estimated on the basis of a fixed interest rate of 5.06%
(indicative rate for 26 September 2008) on ADB loans issued in Euros.
                                                    18

                                            Table 3
                            Estimation of projected annual cash flow
                    Year   Annual Operating                           Annual      Projected Annual
                              Expenses            Repayments         Revenues      Cash Flow (mil.
                             (mil. CFAF)          (mil. CFAF)       (mil. CFAF)        CFAF)
             2009          -7.151             -                 -                 -7.151
             2010          -16.482            -                 -                 -16.482
             2011          -29.422            -                 -                 -29.422
             2012          -1.022             -                 -                 -1.022
             2013          -545               -                 -                 -545
             2014          -3.534             -3.195            3.847             -2.882
             2015          -3.675             -3.103            7.847             1.069
             2016          -3.822             -3.011            12.006            5.172
             2017          -3.975             -2.919            16.328            9.434
             2018          -4.134             -2.827            20.818            13.857
             2019          -4.300             -2.735            25.481            18.446
             2020          -4.472             -2.643            30.323            23.208
             2021          -4.651             -2.551            35.348            28.146
             2022          -4.837             -2.459            40.561            33.265
             2023          -5.030             -2.368            45.970            38.572
             2024          -5.231             -2.276            51.578            44.071
             2025          -5.441             -2.184            57.392            49.768
             2026          -5.658             -2.092            63.418            55.668
             2027          -5.885             -2.000            69.663            61.778
             2028          -6.120             -1.908            76.131            68.103
             2029          -6.365             -                 82.831            76.466
             2030          -6.619             -                 89.768            83.149
             2031          -6.884             -                 96.949            90.065
             2032          -7.159             -                 104.382           97.223
             2033          -7.446             -                 112.073           104.628
             2034          -7.744             -                 120.031           112.287
             2035          -8.053             -                 128.261           120.208
             2036          -8.375             -                 136.773           128.398
             2037          -8.711             -                 145.574           136.864
             2038          -9.059             -                 154.672           145.614


        The baseline scenario leads us to an IRR of 20.8% and a NPV of 95.1 billion CFAF
which attests that the investment has registered a sufficiently positive financial performance.

B7.     ENVIRONMENTAL ANALYSIS

         The key environmental issue in the Republic of Equatorial Guinea is still that of the
degradation of forest resources, essentially caused by the overexploitation of wood for export
purposes. This is compounded by other factors like clearing for extensive farming and the
exploitation of the wood cover for firewood collection. Other environmental problems are
pollution caused by petroleum and natural gas development, the inadequacy of the urban
environment marked by the unwholesomeness of the habitat and the presence of unprocessed
household and industrial waste.
                                               19

         In general, environmental problems in Equatorial Guinea are mostly blamed on the
excessive exploitation of natural resources and demographic pressure. By way of example,
drinking water resources are scarce in both the urban and rural areas due to lack of maintenance
of the supply systems and high demographic pressure. Likewise, the deterioration of living
conditions in the urban areas essentially results from lack of infrastructure and rapid population
growth.

         To solve the problems linked to the abusive exploitation of the forest as well as those
related to urban insalubrity and pollution caused by the development of hydrocarbons, the
Equato-Guinean Government, among other actions, prepared a plan for the classification and
rational use of the land in the country’s continental region on the basis of biological, physical,
technical and sociocultural criteria and depending on the national policy objectives relative to
rural development, forest production and the conservation of the forest ecosystems. The
Government also enacted a law on the protected areas which represent about 18.6% of the
national forest cover and prohibited the large-scale exploitation of undressed timber on Bioko
Island.

          On another note, the Government intends to implement, with UNESCO’s collaboration,
an information, education, communication (IEC) programme meant to create a new
environmental management synergy (particularly of coasts) likely to generate a powerful
interactive relationship between the various social actors (administration, communities, civil
society, other donors, etc.) through the mass media and the National University of Equatorial
Guinea (UNGE). The targeted objective is to step up the populations’ participation and
involvement in the development process and achieve a behavioural change among people,
groups or communities that could result in improving the quality of life and an enhanced
environmental protection.

          The Training Programme for Middle and Senior Executives envisaged by the Bank is
highly attentive to environmental issues. Thus, to avoid the degradation of the ecosystem, the
programme intends to protect the construction sites of the provincial polytechnic institutes (PPI)
of Luba, Bata, Ebebiyin, Mongomo and Evinayong from systematic tree cutting. It will
encourage the sowing of plant species on the bare areas. This measure will be clearly stated in
the bidding documents (BD) and specifications of the enterprises awarded the construction works
contract.

          Moreover, the various roads and networks to be put in place necessarily provide for rain
water and household wastewater disposal systems. In addition, the waste deriving from the
activities of PPI workshops and EUAPEF chemical, geological, biological and microbiological
laboratories will be systematically incinerated.

         Finally, the curricula of middle executives trained in provincial polytechnic institutes
and top managers from EUAPEF will include an environmental education component. The latter
will focus a lot of attention on the need to preserve biodiversity and ecosystems as an integral
part of sustainable development. The training in environmental education will be flexible and
adapted to situations in that it can be offered within the framework of formal education or in the
form of internship or seminars.
                                               20


B8.     GENDER ISSUES

         Gender equity issues are still not sufficiently capitalized on in the Republic of
Equatorial Guinea because of the scanty research and studies conducted so far in this field.
However, the information currently available show that in the country, opportunities are
unequally apportioned between men and women. This situation is due to the persistence of some
cultural factors, particularly values, beliefs and behaviours which determine the social status of
women.

        In 2002 for example, Equatorial Guinea was ranked 86th out of 177 countries as regards
the gender-specific human development indicator with an index of 0.691 while during the same
period, Cameroun occupied the 111the position with an index of 04.91. With respect to
opportunities in public life, the data of the second general population census in 1994 show that
the proportion of women in decision making bodies is as follows:
.
              Village Chiefs of Rural Council Chairpersons                 1%
              Municipal and rural councillors                              16.7%
              Mayors                                                       16.7%
              Magistrates                                                  15%
              Women in judicial structures                                 1.6%
              Regional representatives                                     38%
              Cabinet Ministers                                            9.3%
              Managers in the private sector                               0.29%
              Women in the public sector                                   10%
         The examination of the composition of the Government formed on 14 July 2008, reveals
that women occupy one (1) ministerial post and four (4) vice-Ministerial posts in a 42-member
Cabinet, i.e. a representation rate of only 11.9 %.

         According to information provided by the United Nations Development Programme in
Malabo, the weight of Equato-Guinean women in their country’s global economic activity
represented 45.7% in 2002. Their presence is particularly high in the agricultural sector where
they provide 78% of the labour force.

          With respect to education and training, the girls/boys ratio in primary school was 91 to
100 in 2003, which shows a slight gender gap. However, the difference widens in secondary
school with a gap of 57 girls for 100 boys and at the higher education level with 47 girls for 100
boys in 2004. Concerning the literacy level, the gap between boys (98.8%) and girls (96.1%)
narrowed in 2002. In contrast, the gap among adults (15 years old and above) is huge with a
literacy rate of 92.5% for men and 74.4 % for women.

         To strike a gender balance, the Government formulated a women’s empowerment
policy and created a Ministry in charge of Women’s Status entrusted with its implementation.
There is need, however, to popularize this policy, improve the legal status of women, particularly
as regards their access to decision-making organs, to land ownership and financial capital, as
well as improve national capacities in the field of gender.
                                                         21

           In the education system, the gender integration strategy necessitates the strengthening of
  the Education Department staff’s capacities. Gender sensitization and training should then be
  extended to other ministries, university organs, schools and other affiliated institutions in order
  to bring pressure to bear on behaviours founded on discrimination and inequity observed in
  schools and thus trigger a change in educational practices.
            Concerning the middle and senior executives training programme, the statistics
  collected by DGPPE will be systematically broken up per gender so as to better plan the
  activities aimed at reducing gender-related inequalities. Besides, to improve girls’ access to
  vocational training and facilitate their success in PPI, the programme will organize an
  information and sensitization campaign among the community, encourage women applicants to
  teaching posts, award merit scholarships to the best girl students and train teachers in equity
  practices between girls and boys at school and in the classroom. Finally, the programme will
  institute sexual education in the provincial polytechnic Institutes.
  B9.         PROGRAMME PREPARATION AND SUPERVISION

Key activities                        Period                   Participants
Identification mission                29         February-10   Education analyst (1), Specialist in ETFP (1),
                                      March 2008               Financial analyst (1), Economist (1)
Preparatory mission                   14 to 27 June 2008       Education      analyst   (1),   ETFP   Specialist   (1),
                                                               Acquisitions Specialist(1)
Initial review                        4 July 2008              P. Dougna, Socio Economist, OSHD.2
                                                               C. M. Guedegbe, Education Analyst, OSHD. 2,
                                                               Erina Dia, Education Analyst, OSHD.2, I. Sanogo,
                                                               Health Analyst and Pascal Yembeline, Economist,
                                                               ORCE
Meeting of the Country Team           5 August 2008            Country Team
Meeting    of    the     Operations   20 August 2008           Bank management
Committee
Evaluation mission                    29            Augut-13   Education analyst (1), Acquisitions Specialist (1),
                                      September 2008           Financial analyst (1), Education Economist (1)
Negotiations                          To be determined         Bank and Government
Translation                           24 October 2008          CSLU
Board’s approval                      14 January 2009          Directors
Signing the loan agreement            30 January 2009          Bank and Government
Loan effectiveness                    May 2009                 Bank management and Government
Launching mission                     June 2009                Programme manager and acquisitions specialist
Mid-term review                       June 2011                Programme manager, acquisitions specialist and
                                                               gender expert
Completion date                       31 December 2013         DGESR

  The programme will be thoroughly supervised twice a year by the OSHD Department and the
  Bank's Regional Office in Gabon (GAFO). The said supervision will serve as an opportunity to
  stimulate the implementation of the programme’s activities but also to familiarize the personnel
  of the Programme’s Management Unit with the Bank’s rules of procedure. The mid-term review
                                                   22

will be undertaken during the third year of the programme. It will enable the key technical
education and vocation training actors (central, regional and local education services, private
sector, bilateral and multilateral development agencies, civil society, teachers parents and
students, etc.) in Equatorial Guinea to assess the degree of implementation of scheduled
activities, adopt corrective measures, if necessary, and discuss ways and means of developing
synergies between the different development partners.

C1.        PPI TRAINING COURSES

PPI OF LUBA (42 training courses)

1.         Technician’s level

     Sectors                  Training courses/occupation
     Building     and   Civil Field superintendent (Heavy construction)
     Engineering              Planning, organization, works management, price study
                              Field superintendent (Lay-out, installation and second finishings)
                              Field superintendent (Electric and energy equipment)
     Agriculture/Woodwo       Operations management (Intensive farming)
     rks                      Operations management (Animal breeding)
                              Woodworks (Joinery, carpentry, turnery)
     Fisheries                Fish farming and aquaculture
     Technology               Installation and maintenance of equipment (Electrotechnology)
                              Installation and maintenance of equipment (Electronics)
                              Upkeep and maintenance (Automated office equipment)
                              Upkeep and maintenance (Telephone and telecommunication)
                              Mechanical Workshop Foreman
                               Project Manager (Electronics and Electrotechnology)
     Petrochemistry/          Network maintenance, transportation and routing of the piping
     extraction               system
                              Maintenance of electrical systems
     Tertiary                 Accounting
                              Secretariat
                              Restaurant Manager
                              Hotel Manager
     TOTAL :                  20 courses
                                                                23


  2.             « Qualification » level
Sectors                                        Training courses/occupation
Building and Civil Engineering                  Masonry
                                                Electricity
                                                Joinery fittings
                                                Painting/coating
                                                Washroom facilities
                                                Refrigeration and air conditioning
Agriculture/Woodworks                           Large-scale farming
                                                Fruit growing
                                                Small animal breeding
                                                Fruit/flower production
Fisheries                                       In-shore and small-scale fishing
Technology                                      Milling machine turner
                                                Welded sheet metal assembly
                                                Automobile mechanics (Maintenance of private vehicles)
                                                Mechanics (Maintenance of industrial vehicles, construction equipment,
                                                agricultural implements, big engines)
Petrochemistry/Extraction                       Welding
                                                Drilling
Tertiary                                        Secretariat
                                                Catering service
                                                Cooking
                                                Reception
                                                Room cleaning and servicing (chamber maids )
TOTAL :                                        22 courses


             PPI OF BATA (37 training courses)

  1.             Technician’s level
       Sectors                     Training courses/occupation
       Building      and   Civil   Field superintendent (Heavy construction)
       Engineering                 Planning, organization, works management, price study
                                   Field superintendent (Lay-out, installation and second finishings)
                                   Field superintendent (Electric and energy equipment)
       Fisheries                   Off-shore fishing and fishing pattern
                                   Fish farming and aquaculture
       Technology                  Installation and maintenance of equipment (Electrotechnology)
                                   Installation and maintenance of equipment (Electronics)
                                                             24

                                 Upkeep and maintenance (Automated office equipment)
                                 Upkeep and maintenance (Telephone and telecommunication)
                                 Mechanical Workshop Foreman
                                 Project Manager (Electronics and Electrotechnology)
     Tertiary                    Business manager
                                 Sale
                                 Accounting
                                 Secretariat
                                 Restaurant Manager
                                 Hotel Manager
     TOTAL :                     18 courses


2.          « Qualification » level

     Sectors                      Training courses/occupation
     Building     and    Civil     Mason
     Engineering                   Electrician
                                   Joinery fittings worker
                                   Painting/coating
                                   Washroom facilities installer
                                   Refrigeration and air conditioning
     Fisheries                     In-shore and small-scale fishing
     Technology                    Milling machine turner
                                   Welded sheet metal assembly
                                   Automobile mechanics (Maintenance of private vehicles)
                                   Mechanics (Maintenance of industrial vehicles, construction equipment,
                                   agricultural implements, big engines)
     Petrochemistry/Extract        Welding
     ion                           Drilling
     Tertiary                      Accounting
                                   Secretariat
                                   Catering service
                                   Cooking
                                   Reception (Hotel Management)
                                   Chambermaids (Hotel Management)
     TOTAL :                      19 courses
                                                           25

PPI OF EBIBEYIN (25 training courses)

1.         Technician’s level

     Sectors                   Training courses/occupation
     Agriculture/Woodwor       Operations management (Farming)
     ks                        Operations management (Animal breeding)
                               Woodworks (Joinery, carpentry, turnery)
     Technology                Installation and maintenance of equipment (Electrotechnology)
                               Installation and maintenance of equipment (Electronics)
                               Upkeep and maintenance (Automated office equipment)
                               Upkeep and maintenance (Telephone and telecommunication)
                               Mechanical Workshop Foreman
     Tertiary                  Catering
                               Hotel Management
                               Accounting
                               Secretariat
     TOTAL :                   12 courses


2.         « Qualification » level

     Sectors                     Training courses
     Agriculture/Woodworks           Large-scale farming
                                     Fruit growing
                                     Small animal breeding
                                     Fruit/flower production
     Technology                      Milling machine turner
                                     Automobile mechanics (Maintenance of private vehicles)
                                     Mechanics (Maintenance of industrial vehicles, construction equipment,
                                     agricultural implements, big engines)
     Tertiary                        Accounting
                                     Secretariat
                                     Catering service
                                     Cooking
                                     Reception
                                     Chambermaids
     TOTAL :                     13 courses
                                                      26

PPI OF BATAMONGOMO (24 training courses)

1.         Technician’s level

     Sectors                  Training courses/occupation
     Building   and   Civil   Field superintendent (Heavy construction)
     Engineering              Field superintendent (Lay-out, installation and second finishings)
     Technology               Installation and maintenance of equipment (Electrotechnology)
                              Installation and maintenance of equipment (Electronics)
                              Upkeep and maintenance (Automated office equipment)
                              Upkeep and maintenance (Telephone and telecommunication)
                              Automobile mechanics
     Tertiary                 Catering
                              Hotel Management
                              Accounting
                              Secretariat
     TOTAL :                  11 courses
                                                          27

2.         « Qualification » level

     Sectors                      Training courses
     Building     and    Civil     Masonry
     Engineering                   Electricity
                                   Painting
                                     Washroom facilities installation
                                   Refrigeration and air conditioning
     Technology                    Automobile mechanics (Maintenance of private vehicles)
                                   Mechanics (Maintenance of industrial vehicles, construction equipment,
                                   agricultural implements, big engines)
     Tertiary                      Accounting
                                   Secretariat
                                   Catering service
                                   Cooking
                                   Reception
                                   Chambermaids
     TOTAL :                      13 courses


PPI OF EVINAYONG (22 training courses)

1.         Technician’s level

     Sectors                     Training courses/occupation
     Agriculture/Woodwor         Operations management (Farming)
     k                           Operations management (Animal breeding)
                                 Woodworks (Joinery, carpentry, turnery)
     Technology                  Installation and maintenance of equipment (Electrotechnology)
                                 Upkeep and maintenance (Automated office equipment)
                                 Upkeep and maintenance (Telephone and telecommunication)
     Tertiary                    Catering
                                 Hotel Management
                                 Accounting
                                 Secretariat
     TOTAL :                     10 courses
                                                         28

2.         "Qualification” level


     Sectors                       Training courses
     Agriculture/Woodwork          Large-scale farming
     s                             Fruit growing
                                   Small animal breeding
     Woodwork                      Joinery, carpentry, turnery
     Technology                    Automobile mechanics (Maintenance of private vehicles)
                                   Mechanics (Maintenance of industrial vehicles, construction equipment,
                                   agricultural implements, big engines)
     Tertiary                      Accounting
                                   Secretariat
                                   Catering service
                                   Cooking
                                   Reception
                                   Chambermaids
     TOTAL :                       12 courses

				
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