document of the world bank - home | afghanistan...
TRANSCRIPT
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: PAD1131
INTERNATIONAL DEVELOPMENT ASSOCIATION
PROJECT APPRAISAL DOCUMENT
OF A
PROPOSED GRANT
IN THE AMOUNT OF US$50.00 MILLION
TO THE
ISLAMIC REPUBLIC OF AFGHANISTAN
FOR A
HIGHER EDUCATION DEVELOPMENT PROJECT
June 30, 2015
Education Global Practice
South Asia
This document is being made publicly available prior to Board consideration. This does not imply a
presumed outcome. This document may be updated following Board consideration and the updated
document will be made publicly available in accordance with the Bank’s policy on Access to Information.
ii
CURRENCY EQUIVALENTS
(Exchange Rate Effective May_31, _2015)
AFN 58.84 = US$1
FISCAL YEAR
December 22 – December 21
ABBREVIATIONS AND ACRONYMS
AfgREN Afghanistan Research and Education Network OBE Outcome-Based Education
AFMIS Afghanistan Financial Management Information
System OECD Organization for Economic Cooperation and
Development
ANDS Afghanistan National Development Strategy OMST Operational Management and Support Team
APQN Asia Pacific Quality Assurance Network PACBP Public Administration Capacity Building
Project
APR Annual Progress Report PAD Project Appraisal Document
ARDS Afghanistan Reconstruction Development
Services PCU Project Coordination Unit
ARDS-PU Afghanistan Reconstruction Development
Services- Procurement Unit PDO Project Development Objective
ARTF Afghanistan Reconstruction Trust Fund PEFA Public Expenditure and Financial
Accountability
CO Country Office (World Bank) PFM Public Financial Management
CQS Consultant Qualifications PFM-RP Public Financial Management-Reform Project
DA Designated Account PIA Project Implementing Agency
DAB Da Afghanistan Bank PIM Project Implementation Manual
DAC Development Assistance Committee (OECD) PL Procurement Law
DG Director General PMIS Public Management Information System
DLI Disbursement-Linked Indicator PP Procurement Plan
EC European Commission PPG Project Preparation Grant
ECs Executive Committees PPR Post Procurement Review
EEP Eligible Expenditure Program PPU Procurement Planning Unit
ESMF Environmental and Social Management
Framework PR Procurement Review
FBS Fixed Budget PRAMS Procurement Risk Assessment Management
System
FM Financial Management QA Quality Assurance
FME Financial Management Elements QAA Quality Assurance and Accreditation
FY Financial Year QAAD Quality Assurance and Accreditation
Directorate
GAC Governance and Anti-Corruption QAU Quality Assurance Unit
GDP Gross Domestic Product QBS Quality- Based Selection
iii
GER Gross Enrollment Rate QCBS Quality and Cost Based Selection
GIZ German Federal Enterprise for International
Cooperation RBF Results- Based Financing
GoA Government of Afghanistan REOI Request for Expressions of Interest
GRM Grievance Redressal Mechanism RPF Resettlement Policy Framework
HEDP Higher Education Development Project RF Risk Factor
HEIs Higher Education Institutions SAG Supreme Auditor General
HEP Higher Education Project (USAID) SAO Supreme Audit Office
HQ Headquarters (World Bank) SC Steering Committee
HRD Human Resource Development SCB Standard Competitive Bidding
HRDB Human Resource Development Board SCL Student-centered Learning
IBRD International Bank for Reconstruction and
Development SDC Staff Development Center
ICB International Competitive Bidding SDU Special Disbursement Unit
ICT Information and Communication Technology SEPA Procurement Plan Management System
IDA International Development Association SHEP Strengthening Higher Education
IFP Investment Project Financing SOE Statement of Expenses
IFSA Integrated Fiduciary Systems Assessment SP Strategic Plan
ILO International Labor Organization SSS Single Source Selection
IMF International Monetary Fund STEM Sciences, Technology, Engineering and
Medicine
IQAU Internal Quality Assurance Units TA Technical Assistance
IRR Internal Rate of Return TEIN Trans-Eurasia Information Network
ISN Interim Strategy Note TER Technical Evaluation Report
IT Information Technology TPV Third Party Verification
IUFR Interim Unaudited Financial Report TS Time Schedule
LCS Least Cost Selection TTL Task Team Leader
M&E Monitoring and Evaluation UNDB United Nations Development Business
MoF Ministry of Finance US United States
MoHE Ministry of Higher Education USAID United States Aid for International
Development
MP Master Plan USD United States Dollar
NCB National Competitive Bidding USWDP University Support & Workforce Development
Program
NHESP National Higher Education Strategic Plan WA Withdrawal Applications
NPV Net Present Value WDI World Development Index
NRVA National Risk and Vulnerability Survey
Regional Vice President: Annette Dixon
Country Director: Robert Saum
Senior Global Practice Director: Claudia Costin
Global Practice Manager Keiko Miwa
Task Team Leader: Harsha Aturupane
iv
AFGHANISTAN
Higher Education Development Project
TABLE OF CONTENTS
Page
I. STRATEGIC CONTEXT ..................................................................................................... 1
A. Country Context .................................................................................................................................... 1
B. Sectoral and Institutional Context ......................................................................................................... 1
C. Higher Level Objectives to which the Project Contributes ................................................................... 4
II. PROJECT DEVELOPMENT OBJECTIVES .................................................................... 4
A. Project Development Objective (PDO) ................................................................................................. 4
B. Project Beneficiaries ............................................................................................................................. 4
C. PDO Level Results Indicators ............................................................................................................... 4
III. PROJECT DESCRIPTION .................................................................................................. 5
A. Project Components .............................................................................................................................. 5
B. Lessons Learned and Reflected in the Project Design .......................................................................... 9
IV. IMPLEMENTATION ......................................................................................................... 10
A. Institutional and Implementation Arrangements ................................................................................. 10
B. Results Monitoring and Evaluation ..................................................................................................... 10
C. Sustainability ....................................................................................................................................... 11
V. KEY RISKS ......................................................................................................................... 11
VI. APPRAISAL SUMMARY .................................................................................................. 12
A. Economic and Financial Analysis ....................................................................................................... 12
B. Technical ............................................................................................................................................. 13
C. Financial Management ........................................................................................................................ 14
D. Procurement ........................................................................................................................................ 14
E. Governance and Anticorruption .......................................................................................................... 15
F. Social (including Safeguards) ............................................................................................................. 16
G. Environment (including Safeguards) .................................................................................................. 16
H. World Bank Grievance Redressal ....................................................................................................... 17
Annex 1: Result Framework and Monitoring .......................................................................... 18
Annex 2: Detailed Project Description ...................................................................................... 36
v
Annex 3: Implementation Arrangements ................................................................................. 48
Annex 4: Implementation Support Plan ................................................................................... 82
Annex 5: Economic and Financial Analysis ............................................................................. 87
vi
.
PAD DATA SHEET
Afghanistan
Higher Education Development Project (P146184)
PROJECT APPRAISAL DOCUMENT
SOUTH ASIA
Report No.: PAD1131
.
Basic Information
Project ID EA Category Team Leader
P146184 B - Partial Assessment Harsha Aturupane
Lending Instrument Fragile and/or Capacity Constraints [ X ]
Investment Project Financing Financial Intermediaries [ ]
Series of Projects [ ]
Project Implementation Start Date Project Implementation End Date
25-August-2015 30-September-2020
Expected Effectiveness Date Expected Closing Date
25-July-2015 31-December-2020
Joint IFC
No
Practice
Manager/Manager
Senior Global Practice
Director Country Director Regional Vice President
Keiko Miwa Claudia Maria Costin Robert J. Saum Annette Dixon
vii
.
Approval Authority
Approval Authority: Management Committee, Afghanistan Reconstruction Trust Fund
.
Borrower: Islamic Republic of Afghanistan
Responsible Agency: Ministry of Higher Education
Contact: Dr. Fareeda Momand Title: Minister of Higher Education
Telephone No.: 0093795025025 Email: [email protected]
.
Project Financing Data(in USD Million)
[ ] Loan [ ] IDA Grant [ ] Guarantee
[ ] Credit [ X ] Grant [ ] Other
Total Project Cost: 50.0 Total ARTF Financing: 50.0
Financing Gap: 00.0
.
Financing Source Amount
Borrower 00.00
Afghanistan Reconstruction Trust Fund
50.00
Total 50.00
.
viii
Expected Disbursements (in USD Million)
Fiscal Year 2016 2017 2018 2019 2020 2021
Annual 8.0 11.0 11.0 11.0 8.0 1.0
Cumulative 8.0 19.0 30.0 41.0 49.0 50
.
Institutional Data
Practice Area / Cross Cutting Solution Area
Education
Cross Cutting Areas
[ ] Climate Change
[ X ] Fragile, Conflict & Violence
[ X ] Gender
[ X ] Jobs
[ ] Public Private Partnership
Sectors / Climate Change
Sector (Maximum 5 and total % must equal 100)
Major Sector Sector % Adaptation
Co-benefits %
Mitigation Co-
benefits %
Education Tertiary education 100
Total 100
I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information
applicable to this Project.
.
ix
Themes
Theme (Maximum 5 and total % must equal 100)
Major theme Theme %
Human development Education for the knowledge economy 90
Public sector management Public sector management 10
Total 100
.
Proposed Development Objective(s)
The Project development objective is to increase access to, and improve the quality and relevance of,
higher education in Afghanistan.
.
Components
Component Name Cost (USD Millions)
Higher Education Development Program 40.0
Program and Operations Technical Support 10.0
.
Compliance
Policy
Does the Project depart from the CAS in content or in other significant
respects?
Yes [ ] No [ X ]
.
Does the Project require any waivers of Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]
x
Does the Project meet the Regional criteria for readiness fo implementation? Yes [ X ] No [ ]
.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X
.
Legal Covenants
Name Recurrent Due Date Frequency
Project Implementation Manual X Continuous
Description of Covenant
The Recipient shall prepare and adopt the Project Implementation Manual (PIM), in form and substance
acceptable to the World Bank, and thereafter ensure that the Project is carried out in accordance with the
arrangements and procedures set out in the PIM as agreed with the World Bank.
Name Recurrent Due Date Frequency
Third-party Verification Personnel X Continuous
xi
Description of Covenant
The Recipient shall undertake a verification process to certify the achievement of the DLI Targets. To
this end, the Recipient shall appoint, and thereafter maintain throughout the Project implementation
period, third-party verification personnel, with terms of reference and qualifications satisfactory to the
World Bank, for the purposes of carrying out third-party verification of the Disbursement Linked
Indicator (DLI) targets.
Name Recurrent Due Date Frequency
Submission of DLI reports X Continuous
Description of Covenant
The Recipient shall, not later than February 28 of each year during the Project implementation period,
furnish reports to the World Bank on the status of achievement of the relevant DLI targets and the DLI
verification reports of the third-party verification personnel.
.
Conditions
Source of Fund Name Type
ARTF Grant Disbursement condition Disbursement
Description of Condition
The Recipient may not withdraw the proceeds of the Grant for Eligible Expenditure Programs (EEPs)
unless and until it has: (a) furnished evidence satisfactory to the World Bank that it has achieved the
respective DLIs targets; and (b) furnished to the World Bank the interim unaudited financial reports
documenting the incurrence of EEPs against which withdrawal is requested.
Team Composition
Bank Staff
Name Title Specialization Unit
Mohammad Abbass Procurement Analyst Procurement GGODR
Juan Carlos Alvarez Senior Counsel Legal LEGES
Harsha Aturupane Lead Education Task Team Leader GEDDR
xii
Specialist
Subrata S. Dhar Senior Social Protection
Specialist
Social Protection GSPDR
Marzia Meena Social Development
Consultant
Social Development GSURR
Roshini Mary Ebenezer E T Consultant Education GEDDR
Zohra Farooq Financial Management
Specialist
Financial Management GGODR
Kurt Larsen Senior Education
Specialist
Higher Education GEDDR
Mohammad Arif Rasuli Senior Environmental
Specialist
Environmental GENDR
Abdul Hai Sofizada Consultant Education GEDDR
Kimie Tanabe Consultant Economics GEDDR
Chau-Ching Shen Senior Finance Officer Finance CTRLN
Abdul Rahman Shafiee E.T. Temporary Administrative SACKB
Maya Port E T Consultant Legal LEGAM
Dilip Kumar Prusty
Chinari
Finance Analyst Finance CTRLN
Rahmullah Wardak Senior Procurement
Specialist
Procurement GGODR
Atiqullah Ahmadzai E.T. Consultant Procurement GGODR
Asta Olesen Senior Social
Development Specialist
Social Development GSURR
Tania Choufani Consultant Procurement CRK13
xiii
Palwasha Mirbacha Education Specialist Economics GEDDR
Julie-Anne Graitge Program Assistant Administrative GEDDR
Surendra Agarwal Consultant Operations GEDDR
Benoit Millot Consultant Economics GEDDR
Elfreda Vincent Temporary Administrative GEDDR
.
Locations
Country First
Administrative
Division
Location Planned Actual Comments
Afghanistan Kabul Kabul
X
1
I. STRATEGIC CONTEXT
A. Country Context
1. Afghanistan has played a prominent role in world history. The country is strategically
located at the intersection of Central, South and West Asia, and is bordered by several nations
including China, Iran, Pakistan, Tajikistan, Turkmenistan and Uzbekistan. The great silk route of
ancient times ran through Afghanistan. The country has a population of about 28.6 million
people in a land area of around 650,000 square kilometers of mainly mountainous terrain.
Afghanistan has experienced a long period of instability and violence, and is classified by the
Bank as a conflict affected and fragile state.
2. Afghanistan is a country with a Gross Domestic Product (GDP) per capita of US$
666 in 2014. The country experienced exceptionally high growth between 2003 and 2012, when
real GDP grew at an average rate of 9 percent annually. Dynamism in the economy was driven
by investments in reconstruction activities, security and ancillary activities, large aid inflows and
periodic spikes in agriculture production. In 2014 the growth rate slowed to 2.4 percent, mainly
due to security concerns, the global economic downturn and lower aid flows. However,
Afghanistan has potential for strong economic growth in the future, especially in the agriculture,
mining, natural resources and service sectors.
3. Afghan policy makers perceive higher education as a vital engine of growth and
development. The Government of Afghanistan (GoA) is fully aware of the strategic importance
of human capital in the modern global knowledge economy. The higher education system
produces the pool of high level human resources, such as policy makers, professionals,
managers, academics and technical experts, who are essential for economic development. Policy
makers also recognize the contribution higher education can make to the promotion of civic
values and attitudes needed for a modern, enlightened democracy, and the development of a
socially cohesive nation. In this context the Ministry of Higher Education (MoHE) has prepared
a second National Higher Education Strategic Plan (NHESP II) to accelerate the development of
higher education over the period 2015-2020. The NHESP II outlines a broad development
framework to be implemented through a multi-year rolling plan.
B. Sectoral and Institutional Context
4. Afghanistan has an under-developed higher education sector. The gross enrollment
rate (GER) in higher education, at about six percent in 2014, is one of the lowest in the world.
Among countries comparable to Afghanistan in terms of income per capita and/or geographical
proximity, only a few countries such as Burundi, Chad, Gambia and Niger have lower higher
education enrollment rates. Countries with per capita incomes closest to Afghanistan, such as
Guinea and Togo, have higher enrollment rates. Further, less than 2 percent of Afghan women
aged 19-24 years are enrolled in higher education. This is one of the lowest female higher
education enrollment rates world-wide. The proportion of female academic staff members at
public universities, at only 14 percent, is also very small.
2
5. The higher education system needs to expand with a strategic focus on the future
development of Afghanistan. At present the country has 24 public universities enrolling around
145,000 students and 12 small public higher education institutes which enroll about 7,500
students. There are also private higher education institutes that enroll approximately 130,000
students. About 20 percent of students enrolled in the universities and higher education institutes
are female. While the total number of universities and institutes appear adequate, the number of
students enrolled in these institutions is insufficient, as seen from the low gross enrollment rates.
In addition, rising numbers of students are completing secondary education, and there is growing
demand for higher education from young Afghans. Currently, less than 16 percent of secondary
school completers seeking admission to universities can be offered places.
6. The country requires a major increase in the number of university graduates to
create a modern, well-educated workforce. In addition, the number of female graduates needs
to increase sharply to promote gender equity and empowerment. The MoHE is aware of this
urgent need. However, the MoHE also recognizes that it is important to increase higher
education enrollment in degree programs that are in demand in the labor market, and can
contribute directly to economic growth and social development. The NHESP II seeks to expand
higher education enrollment over time, but with a special focus on priority degree programs
drawn mainly from the sciences, technology engineering and medicine (STEM).
7. University teaching and learning needs to be modernized. Afghan universities are
largely traditional, with teacher-centered pedagogy and passive student learning. International
trends in universities are increasingly moving toward active student centered learning (SCL) and
outcome-based education (OBE). These also combine with blended learning where on-line e-
learning methods are integrated with on-site, face-to-face interaction between students and
teachers. Afghan universities urgently need to modernize teaching and learning to reflect and
keep pace with these international trends.
8. The pool of qualified academic staff needs to be expanded urgently. The quality of
academic staff critically determines the quality of a higher education system. Yet, there is a
severe shortage of qualified academic staff in Afghan universities. The number of Ph.D.
qualified academic staff is less than 5 percent. Most universities have either no Ph.D. qualified
academic or just one or two such staff members. Even the number of faculty staff with Master’s
degrees is very low. Only 31 percent of academic staff members have a Master’s degree. The
majority of university academics, 65 percent, have only Bachelor’s degrees. The country needs
to staff its universities with appropriately qualified academics as a high and urgent priority.
9. The governance of higher education is outdated. The organization and conduct of the
Afghan higher education system reflects an earlier era, when Governments exercised strong
central control over public higher education institutions (HEIs). The governance framework of
modern higher education systems award greater autonomy to public universities and create an
enabling environment for good quality private HEIs. The Afghan higher education system needs
to be modernized with greater authority and accountability at the institution level. Academic
autonomy is important to enable innovations in curriculum design, teaching-learning methods,
assessment procedures, and research and development. Procedural autonomy is important to
empower universities to take initiative and leadership for their own development. The GoA has
3
recently taken important steps in this direction, including passing a by-law allowing universities
to exercise fiscal autonomy.
10. The licensing, quality assurance and accreditation of higher education institutions
has to be developed to reflect international standards and practices. The MoHE has an
embryonic quality assurance system and accreditation (QAA) system for public and private
HEIs. However, the QAA system urgently needs to be raised to a new and considerably higher
level. This requires the development of a systematic process of external quality assurance
reviews which covers both public and private higher HEIs, and which then feeds into the annual
rolling plan of the NHESP II framework. In addition, all universities need to develop well-
functioning internal quality assurance units (IQAUs) to conduct internal quality reviews and feed
these into university development plans. The licensing and accreditation of both public
universities and private HEIs as part of one integrated system needs to be developed. Finally,
licensing, quality assurance and accreditation needs to have a more ‘outward-oriented’ approach
which reflects international developments. This extends beyond confirmation of the quality and
standards of higher education provision in the Afghan context and requires benchmarking with
standards in the Asia-Pacific Region and beyond.
11. Greater quality enhancement of the private higher education sector is required. The
GoA recognizes the importance of promoting private sector participation in higher education for
the long-term development of the country. A number of higher private education institutes have
opened in the last decade. However, these mainly provide pre-degree professional education. The
MoHE intends to be more actively involved in developing private universities, both as a cost-
effective strategy to expand access and enrollment, and to promote the delivery of quality degree
programs relevant for the labor market. To achieve this objective the private HEIs need to be
drawn fully into the quality assurance and accreditation framework of the MoHE.
12. The research output of Afghan universities is insignificant. For example, according to
bibliographic data, only 62 research outputs originated in Afghanistan from 1964 to 2013, while
there were 5,813 and 85,381 research outputs originating from Nepal and Pakistan, respectively.
The promotion of research is a vital next step in the development of higher education in
Afghanistan. First, research is an important and distinguishing mandate of universities. Second,
academics engaged in research are likely to be more up-to-date than other academics, and hence
better able to teach the current state of knowledge to students. Third, research and innovation can
make a vitally important contribution to economic and social development. Fourth, research and
consulting services can enable universities to raise revenues for future growth.
13. The NHESP-II recognizes these challenges and seeks to address them strategically.
In particular, the NHESP-II seeks to orient the development of the higher education system to
promote the economic and social development of the country. The NHESP-II also recognizes
that the development of the various universities needs to be sequenced, depending on the starting
point of each institution. In this context, the older and more established universities are to be
developed as national centers of excellence, with their degree programs and research outputs
seeking to meet the overall economic and social needs of the country. The newer universities in
the provinces are to be developed as regional centers of excellence, with their degree programs
4
and research outputs seeking to meet the economic and social needs of the provinces in which
they are located.
C. Higher Level Objectives to which the Project Contributes
14. The proposed Project is consistent with the most recent Interim Strategy Note for the
Islamic Republic of Afghanistan and the World Bank’s strategy to improve equitable service
delivery and promote prosperity in Afghanistan. The Bank supports GoA’s overall vision of “an
education sector that engenders a healthy workforce with relevant skills and knowledge that is of
central importance for long-term economic growth”. In line with GoA’s growth strategy, HEDP
would support Afghanistan’s drive to improve human development, including a broad spectrum
of higher education development initiatives. The Bank and USAID are the only major
development partners providing assistance for higher education.
15. The World Bank has played an integral role in the reconstruction of the higher
education system in Afghanistan. The Bank supported the Afghanistan Strengthening Higher
Education Project (SHEP) 2005-2013. SHEP’s objective was to progressively restore basic
operational performance to the sector through support to 12 core universities and the MoHE.
SHEP achieved this objective through investments in human resource development, curriculum
standardization and the restoration of basic physical infrastructure such as lecture rooms,
laboratories, and libraries in the 12 selected universities. The HEDP builds on the achievements
of SHEP, incorporating lessons into the design of the new operation.
II. PROJECT DEVELOPMENT OBJECTIVES
A. Project Development Objective (PDO)
16. The Project development objective is to increase access to, and improve the quality and
relevance of, higher education in Afghanistan.
B. Project Beneficiaries
17. An estimated 500,000 higher education students, and 10,000 university academics,
managers and technical staff members will benefit from the HEDP over its life-span. There will
also be many indirect beneficiaries of the Project, including: (a) private sector employers who
will be able to recruit better qualified university graduates; (b) the Government which will be
able to employ higher quality graduates for the civil service and various other public services; (c)
future generations of university students and staff members who will benefit from the system-
wide reforms and improvements; and (d) the producers and suppliers of goods and services
which will be financed under the Project.
C. PDO Level Results Indicators
18. Progress toward the achievement of the PDO would be measured by:
5
Increased student enrollment in universities in priority degree programs for economic
development.1
Expanded number of universities implementing and monitoring strategic institutional
development plans consistent with the National Higher Education Plan.
Increased number of full-time academic staff members with at least a Master’s degree
in priority degree programs for economic development.
19. These are the key outcomes of the HEDP. All indicators, where relevant, would be
measured by gender.
III. PROJECT DESCRIPTION
20. The HEDP will support the country’s NHESP II 2015-2020. The HEDP is organized
under two components: (a) Higher Education Development Program; and (b) Program
Operations and Technical Support. These components are complementary in nature. Component
one has been strategically designed to assist the implementation of NHESP II. Component two
will support the implementation of component one through program coordination, technical
assistance, capacity building, monitoring and evaluation, and research and communication.
These activities will benefit both the MoHE and the universities.
A. Project Components
Component One: Higher Education Development Program (Total US$ 40 million)
21. This component will support the implementation of the NHESP-II through a Results–
Based Financing (RBF) modality. Disbursements will be associated with specific results called
Disbursement Linked Indicators (DLIs). Financing will be provided against Eligible
Expenditures Programs (EEPs) selected from annual MoHE budgets, rather than against specific
inputs. The following key themes would be supported under the component.
Theme 1.1: Increasing Access to Priority Degree Programs for Economic Development
22. The objective of this theme is to expand enrollment in degree programs that are of direct
relevance for future economic development. Special attention will be given to increase female
enrollment in priority degree programs, through initiatives such as: (a) providing scholarships for
female students from disadvantaged backgrounds to enroll in priority degree programs; (b)
strengthening orientation, counseling and support services for women in universities; (c)
improving transportation services to and from universities; and (d) developing on-line higher
education courses to expand opportunities, especially for women who are physically constrained
for cultural reasons from attending universities. The expected increase in student numbers will
also require expansion of a variety of physical facilities and equipment, such as lecture halls,
tutorial rooms, ICT facilities and equipment, science and medical laboratories and equipment,
libraries and e-resources, residential facilities and water and sanitation. The construction
activities required to implement the NHESP-II would be funded through the MoHE budget.
1 The priority degree programs are described in the NHESP-II, and are outlined in Annex 2 of this PAD.
6
Theme 1.2: Modernizing and Enhancing the Quality of Teaching and Learning
23. The objective of this theme is to assist universities in introducing modern outcome-based
education (OBE) and student-centered learning (SCL) in line with current international trends in
higher education. The introduction of OBE and SCL will require new approaches to curriculum
design and delivery; innovative teaching methods and techniques; active and dynamic learning
models; increased use of higher education publications, and ICT and internet-based resources;
and the modernization of assessment systems, in universities. The Staff Development Centers
(SDCs) of universities will play an important role in the provision of continuous professional
development for university academics, management and technical staff, to introduce and
establish OBE and SCL and to use ICT, web-based content and digital resources, for teaching
and learning. The degree programs which are considered priorities for the country’s economic
development will be the first set of programs to which OBE and SCL will be introduced. Over
time, OBE and SCL will be expanded to other degree programs. A key element will be to
strengthen the capacity of the Afghanistan Research and Education Network (AfgREN) to
operate a national system that connects campus networks to each other and to other research and
education networks globally.
Theme 1.3: Improving the Qualifications and Skills of University Staff Members
24. Under this theme, the number of academic staff members who are qualified to at least
Master’s Degree level will be substantially increased. Special attention for support will be given
to: (a) academic staff from degree programs identified as priorities for economic development;
and (b) female academics. Scholarships will target faculty staff of public universities and will be
restricted to full-time, regularly employed faculty staff. Cost effectiveness and the quality of
Master’s degree programs will be considered when selecting universities for study. Cultural
factors in Afghanistan create a preference among many female academics to pursue their
postgraduate studies in-country. In such cases, blended formulae will be used where possible, to
combine overseas and in-country study in partnership with foreign universities. Scholarship
awardees will be bonded by an obligation to work in Afghan universities after graduation. It is
expected that at least 300 scholarships will be awarded over the Project implementation period.
The program will be organized in parallel with the recruitment of new staff so that the absence of
faculty staff pursuing full time study will not create an excessive shortage of teachers. The
development of the universities will also require the skills of technical staff, such as laboratory
and ICT technicians and librarians, to be upgraded. Under this theme, the MoHE will support the
improvement of the quality of university technical staff through suitable short-term skills
upgrading programs, organized mainly through the SDCs.
Theme 1.4: Strengthening Governance, Quality Assurance and Accreditation
25. The objective of this theme is to promote substantive and procedural autonomy of
universities, and to develop the quality assurance and accreditation system. Increased substantive
autonomy will empower universities to take greater initiative and responsibility for the
development of academic programs, research activities and community services. Under
procedural autonomy universities will have greater administrative powers and responsibilities. A
by-law on financial autonomy has been approved by the Cabinet. This enables universities, in
principle, to generate and retain revenues from postgraduate degrees, research and consulting
7
activities, and extension courses, to be used for university development. The development of the
procedures and systems to implement this by-law, including training and capacity building of
university leadership and management, and fiduciary staff, is an important part of this theme.
The exercise of substantive autonomy would initially be pilot tested in about two-four
universities and rolled out over time.
26. For universities to exercise autonomy and be accountable, a clear long term vision must
be implemented. To that end, universities will prepare and implement strategic institutional
development plans (SPs) aimed at progressively increasing the quality and relevance of their
degree programs, research outputs and community services, and utilizing feedback from external
and internal quality assurance reviews. SPs will have to be consistent with the NHESP-II and
present a realistic and sustainable financial framework. In parallel, universities will also develop
Annual Progress Reports (APRs) which will monitor and report progress towards achieving SP
targets, including remedial measures in case of deviations from the SP. Universities’ institutional
development will be strengthened through a Mentors Program. Mentors would be drawn from
among senior academics from foreign and Afghan universities who will support institutional
development and the achievement of the goals and targets set in university development plans.
Mentors will interact closely with the senior management of universities through regular visits.
27. Under this theme, quality assurance and accreditation (QAA) will be expanded and
strengthened to reflect international standards of rigor and utilization. At the national level, the
Afghanistan Quality Assurance and Accreditation Directorate (QAAD) in the MoHE will be
developed, including through membership of an international accreditation network such as the
Asia Pacific Quality Assurance Network (APQN). This will help MoHE to benefit from
international good practice. The QAAD would develop a cadre of QA reviewers trained to
incorporate modern QA protocols and guidelines, and conduct a fresh cycle of external quality
assurance for public universities and private HEIs. The capacity of the QAAD would also be
enhanced to enable a clear, transparent and objective process for the licensing, quality assurance
and accreditation of private HEIs. This is an urgent necessity due to the rapid growth of private
HEIs of very variable quality.
28. A comprehensive Internal Quality Assurance System will also be developed in public
universities. This would involve: (a) setting up Internal Quality Assurance Units (IQAUs) in
universities which lack such units; (b) developing IQAUs in universities which have embryonic
units; (c) assisting universities to conceptualize, plan and conduct institutional self-assessments;
(d) incorporate findings from QA reviews into the design and implementation of university
institutional development plans; and (e) establish a process of continuous quality improvement of
teaching and learning in universities. The IQAUs will play a key role in assisting the academics
to assess and develop the quality of the novel OBE and SCL, and internet-based, teaching and
learning methodologies.
Theme 1.5: Stimulating Development Oriented Research
29. The objective of this theme is to develop a research culture in universities. The focus will
be on applied, development oriented research Projects, mainly from the priority disciplines.
However, research Projects from other disciplines, if clearly development oriented, will also be
eligible for resources. Both group research Projects and individual research will be supported.
8
The group Projects could include research activities by teams drawn from a single university, or
teams drawn from more than one university. Collaboration on research Projects with overseas
researchers would also be encouraged. The Kabul based universities would be expected to
undertake research Projects focused on national development. The universities in the provincial
towns could also undertake national research, but would also act as research hubs for the
development of their provinces. The research culture to be developed will be results-focused and
based on competition. This is consistent with the principle that research activities are more
productive if they are based on incentives and are demand-driven, rather than supply-driven.
Component Two: Program Operations and Technical Support (Total US$ 10 million)
30. This component aims to strengthen the capacity of MoHE and universities to
implement the reforms of the NHESP-II. Support under this component will cover
coordination, capacity building, innovations, monitoring and evaluation, research and
communication. The technical assistance and capacity building activities of this component will
assist the MoHE to implement the development initiatives of the NHESP-II. Policy studies
would include beneficiary feedback surveys of staff and students of institutions and programs
supported by HEDP. Communication would enable higher education authorities to disseminate
development initiatives to political authorities, policy makers, academics, students, and the
general public. The component will also help MoHE to support pilots and innovative approaches
such as the orientation of the universities in provincial towns to support the economic
development of their provinces. This component will also finance incremental operating costs for
an Operations and Monitoring Support Team (OMST) in the MoHE.
Project Financing
31. The HEDP will use an Investment Project Financing (IFP) instrument based on an
RBF modality. Under the RBF component, Project funds will be disbursed against selected line
items in MoHE’s annual budgets (EEPs) up to capped amounts and conditioned on achievement
of the agreed set of DLIs. This component will support the reforms initiated through the NHESP-
II, and will focus on outcomes and results rather than inputs. The second component will
disburse as a traditional IPF.
32. The DLIs for the HEDP reflect priorities for development. These include intermediate
outcomes that build cumulatively over the lifespan of the HEDP to improve access, quality and
relevance of the higher education system. From a disbursement point of view, the DLIs are
independent of each other; non–compliance with a DLI in a period means that disbursement of
the funds associated with that DLI will be withheld (and released later if the DLI is met), but
disbursement associated with other DLIs will not be affected.
33. Eligible Expenditure Programs (EEPs). The World Bank, in consultation with the
Government, has discussed the full higher education sector program and selected EEPs
comprised of non–procurable items from the higher education budget. The EEPs were selected
because they would most directly impact the desired outcomes of the program and ease the fiscal
burden of the MoHE. The EEPs cover: (a) salaries and allowances of staff in the MoHE and
public universities and higher education institutes; and (b) scholarships for academic staff.
9
Program and Project Cost and Financing
34. The estimated Government higher education budget for the period of the NHESP-II,
2015-2020, is around US$ 658 million. Development partners are expected to contribute to this
higher education program with about US$ 140 million. Of this, the ARTF would finance US$ 50
million. USAID is providing US$ 90 million through a separate operation, which is implemented
through a set of partners. The projected resources available from the ARTF and USAID would
enable GoA to implement the NHESP II. However, the scope and scale of the NHESP II could
be further expanded if more resources were available. The MoHE is seeking additional
resources, over and above those already indicated by USAID and the ARTF, to strengthen the
NHESP II. Additional ARTF funds could be made available for the HEDP during
implementation, subject to satisfactory performance and the availability of resources.
Table 1: NHESP-II 2015–2020: Cost and Financing Plan
Source Amount (US$ Million)
Projected financing for implementing NHESP II 658
Government contribution 518
WB-ARTF (2015–20) 50
Development Partner - USAID 90
Source: World Bank.
Table 2: HEDP Project Costs (US$ Million)
Project Components Project
Cost
ARTF
Financing
%
Financing
1. Higher Education Development Program
2. Program Operations and Technical Support
40
10
40
10
100
100
Total Project Costs
Front-End Fees
Total Financing Required
50
None
50
50
50
100
100
Source: World Bank.
B. Lessons Learned and Reflected in the Project Design
35. Key lessons have been drawn from the experience of implementing Projects in
Afghanistan, including the previous SHEP, for the design of the HEDP.
Strong evidenced-based approaches to Project preparation are crucial for effective
Project design. The earlier SHEP was based a 2005 education sector assessment, which
provided valuable information on the state of the sector and potential approaches for
Project design. The HEDP is based on the analysis and recommendations of the World
Bank’s Higher Education Sector Report (2013). This provides a recent, evidence-based
foundation for the HEDP.
Government ownership and strengthening systems are important for sustainable
outcomes. Achievements under SHEP can be attributed to strong ownership of the
Project within MoHE. SHEP was well-integrated into the structure of the ministry, and
not seen as an external entity. This proved to be important for building capacity in the
sector. Many staff members in MoHE’s Project Coordination Unit (PCU) and Executive
10
Committees (ECs) in the universities were well integrated into the management structure
of MoHE and the universities. Increasing capacity in the PCU and ECs provided a strong
platform for the achievement of the Project’s objectives, as well as laying the foundation
for further reform and systemic improvement.
Flexibility is needed when implementing Projects in a fragile environment. The fragile
country context can pose unexpected challenges. Ensuring that the implementing
arrangements are flexible enough to account for unexpected hurdles in Project
implementation is especially important in a fragile context such as Afghanistan.
A robust Monitoring and Evaluation (M&E) system is critical to achieving results. As
demonstrated by other RBF Projects, a robust M&E system is critical for measuring
performance and refining interventions through better-informed decision making. To
ensure the quality of data and verify the DLI achievement, results are to be validated
through third-party studies.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
36. The Project will be implemented by the MoHE and the universities. The MoHE will be
directly responsible for implementation of the national-level activities, including strategy and
program formation, monitoring and evaluation, and technical support. The universities will
directly implement institution-level activities such as internal quality assurance reviews, human
resource development of academic and managerial staff, and the adoption of innovative teaching
and learning practices. These arrangements are based on GoA’s own institutional framework for
the delivery of higher education services.
37. The MoHE will be assisted by the HEDP Operations and Monitoring Support Team
(OMST) to provide operational support and to coordinate and monitor Project activities at the
national and university level. MoHE will establish the OMST and appoint its Director with terms
of reference, satisfactory to the Bank. The Project will have a Steering Committee (HEDP SC) to
provide policy direction and Project oversight. The HEDP SC will be chaired by the Minister of
Higher Education and will include Deputy Ministers, the Director of Planning and Policy, the
Director of Administration and Finance, and the Director, OMST who will also serve as
Secretary to the HEDP SC. Each university will establish a university-level Steering Committee
(University SC), led by the Chancellor which will be responsible for overall planning,
implementation, decision making and monitoring and evaluation of Project activities.
Arrangements, policies and procedures to guide Project implementation on a day-to-day basis are
included in the Project Implementation Manual (PIM).
B. Results Monitoring and Evaluation
38. The HEDP will devote special attention to the monitoring and evaluation (M&E) of
results and outcomes. The objectives of M&E are to: (a) track implementation of the Project, and
strengthen the efficiency where needed; (b) assess the results achieved under each Project
component and sub-component; and (c) evaluate the overall outcomes of the Project. A detailed
results framework has been developed for the HEDP and is presented in Annex 1. This
11
framework comprises a set of outcomes and intermediate outcomes with annual targets to
provide a continuous picture of Project performance. The overall outcomes constitute the key
performance indicators that reflect the development objectives of the Project. The intermediate
outcomes focus on critical milestones for Project progress, and include the DLIs.
C. Sustainability
39. The sustainability of the Project will be enhanced by the following factors: (a)
government ownership and commitment to reforms; the HEDP will support the implementation
of the GoA’s own higher education reform program; (b) the technical viability of the project
design, which is based on international knowledge and expertise, and experience of the previous
SHEP; (c) the HEDPs design and implementation arrangements which pay particular attention to
building capacity in the MoHE and universities; and (d) the fiscal sustainability of HEDP
investments, with the analysis (see Annex 5) indicating that project allocations would not create
an undue fiscal burden on the overall higher education sector budget.
V. KEY RISKS
A. Overall Risk Rating and Explanation of Key Risks
Risk Categories Rating (H, S, M or L)
Political and governance S
Macroeconomic H
Sector strategies and policies M
Technical design of Project S
Institutional capacity for implementation and sustainability S
Fiduciary S
Environment and social M
Stakeholders M
Overall S
40. The overall risk rating for HEDP is Substantial based on the following assessment of
risks:
Macroeconomic risk. Extraordinary expenditure needs related to security, service
delivery and operations and maintenance (O&M) and falling revenues in the current
country context could make it difficult for the GoA to allocate adequate budget for higher
education. The HEDP’s design mitigates this risk by selectively focusing on key
development initiatives and a sizeable TA component, plus linking annual disbursements
to the achievement of agreed results.
Technical design of project risk. This is the first IPF with an RBF modality in
Afghanistan. The implementers’ lack of experience with the new instrument may hinder
the quality of implementation. However, the project design is sound and based on lessons
learned from similar operations in several countries in the region. Unforeseen risks that
may arise in the future will be mitigated through a flexible approach during
implementation.
Institutional capacity for implementation and sustainability risk. MoHE’s capacity for
planning and monitoring the new areas of focus under HEDP is limited. The TA
12
component provides support for an OMST to ensure adequate technical assistance and
support for coordination to the MoHE and universities to plan, implement and monitor
the program. The HEDP also supports the development of capacity in the MoHE and the
universities, including training the management and technical staff.
Fiduciary risks. Fiduciary risks are rated Substantial. To mitigate these risks, as discussed
in Annex 3, HEDP will rely upon the same control systems, reporting, internal and
external auditing arrangements, and prior and ex-post procurement reviews, as other
Projects financed by ARTF and IDA which have proven effective.
Environmental and social risks have a moderate likelihood of adversely affecting the
achievement of the PDO. An Environmental and Social Management Framework has
been prepared for the Government program, which mitigates these risks.
VI. APPRAISAL SUMMARY
A. Economic and Financial Analysis
1. Project Development Impact
41. The proposed Project is expected to significantly improve the performance of the higher
education sector in Afghanistan. It will help GoA expand in-take and enrollment capacity of
universities in priority degree programs. There will be a strong equity focus as expansion will
include measures to promote women’s enrollment. The quality of universities will be
considerably strengthened through an array of targeted reforms. The main beneficiaries of the
Project will be university students, especially women. Over the long-term, the Project will
benefit public and private sector employers, who employ university graduates.
42. A cost benefit analysis was applied to estimate the Net Present Value (NPV) of the
Project and the Internal Rate of Return (IRR) for two scenarios: “with” and “without”
interventions (Annex 5 provides details of the analysis). The benefits of the Project are equal to
the difference between incremental benefits and costs. With an IRR of 16 percent and a NPV of
about US$ 165 million, the results clearly indicate that the proposed Project is a valuable
investment and will have a positive net effect on the economy. A sensitivity analysis was
conducted using Monte Carlo simulations. The analysis concluded that all assumptions are
sound, and that the estimated NPV is likely to remain high within a 95 percent confidence level.
2. Rationale for public sector provision/financing
43. The economic justification for investment in higher education is well-recorded in the
development literature. Rates of return to higher education have increased over time, and higher
education has one of the highest rates of return of any human capital investment. Higher
education generates also a variety of externality benefits, especially in connection with research
outputs. Market failures in the sector and equity arguments, which favor public sector
intervention in higher education, are highly applicable to the case of Afghanistan. There are very
high gender inequities in higher education enrollment, which need to be addressed. Insecurity
and unrest in Afghanistan also hamper private sector investment in higher education. Capital
13
markets for higher education are virtually non-existent. Given all these factors, there is a strong
justification for public sector financing and provision of higher education in Afghanistan.
3. Value added of the Bank's support
44. The Bank has already made a significant contribution to the higher education sector in
Afghanistan in the recent past through support for SHEP and analytical and advisory services.
The proposed Project seeks to build on the capacity, knowledge and relationships developed
through SHEP and the recent Higher Education Report. The Bank brings significant value added
in terms of providing comparative global perspectives on higher education developments and
reform, and its ability to support the Government in adapting these to the Afghan context. The
Bank has extensive technical expertise in higher education, and can contribute concrete and
relevant policy and implementation experience for the development of Afghanistan’s higher
education sector.
45. The GoA has requested the Bank to play a lead role in supporting MoHE’s long-term
higher education development program. The Bank is the only large development partner which
supports higher education in Afghanistan directly through the MoHE. The other main
development partner, USAID, assists the higher education sector through a consultancy
arrangement with several American universities and consulting firms.
B. Technical
46. The design and contents of this Project draw on numerous complementary sources.
GoA, under the leadership of MoHE, has prepared the NHESP-II through a series of
consultations with policy makers, academics, and employers from the public and private
sector. The NHESP II reflects a consensus among these professionals. It is framed in a
long-term vision of the sector, and seen as a priority by the new Government. The HEDO
will support the implementation of the NHESP II.
The HEDP has benefitted from a long period of gestation during which the main
stakeholders in the sector have been consulted on several occasions. Several members of
the national team who are responsible for initiation of the Project were also members of
the team in charge of drafting NHESP-II, ensuring congruence between them.
The HEDP’s concept and design are rooted in the findings and analysis of the 2013
World Bank assessment of the sector. One of the specific objectives of this report was to
inform future operations in the sector.
SHEP was successfully implemented and provided a wealth of lessons about the main
areas of interventions considered in HEDP, including how to best to design activities, and
the most appropriate implementation arrangements for the current political, economic and
sectoral environment in Afghanistan.
World Bank experience in both higher education and results-based financing has been
tapped into the HEDP’s overall conceptual framework and use of the DLI instrument.
Experiences from other development partners, mainly USAID, have also been taken into
account in the design of the Project.
14
C. Financial Management
47. An integrated fiduciary system assessment was undertaken for financial management,
procurement, and governance (see Annex 3). Based on this assessment, subject to the
implementation of the Project Action Plan to mitigate the identified risks, the Project’s overall
fiduciary framework and systems provide reasonable assurance that the financing proceeds will
be used for their intended purposes, with due attention to principles of economy, efficiency,
effectiveness, transparency, and accountability to achieve the Project development objective. The
overall fiduciary risk assessment is rated “Substantial”.
48. Component 2 of the Project will finance FM expertise to strengthen the internal audit
function and internal controls and help build the capacity of MoHE and universities. The Project
will pay particular attention to the transfer of skills from consultants to the GoA counterparts for
long-term sustainability. In addition, the Project will be subject to annual audit by the Auditor
General of Afghanistan as the Supreme Audit Institution of the country. Audited Project
financial statements will be furnished to the Bank within six (6) months of the end of each year.
There are currently no overdue audit reports or ineligible expenditures under Bank-financed
Projects implemented by MoHE.
49. Bank funds for Component 1 will be disbursed upon the achievement of three conditions:
(a) DLI targets against which withdrawal is requested have been met; and (b) Interim Unaudited
Financial reports (IUFRs) have been submitted with information on EEPs, and which show that
total expenditures reflected under all EEPs are greater than the amount of the Grant for which
withdrawal is requested. For Component 2, the standard funds flow mechanism for Afghanistan
will be followed. Project funds will be deposited in the designated account (DA) to be opened in
USD and maintained at the Da Afghanistan Bank (DAB). The DA, in keeping with Afghan law
and current practice for other donor-financed Projects in Afghanistan, will be operated by the
Special Disbursement Unit (SDU) in the Treasury Department of the Ministry of Finance (MoF).
Requests for payments from the DA will be made to the SDU by MoHE as required.
Replenishment requests will be SOE-based and forwarded to the Bank by the SDU.
D. Procurement
50. Component 1 of the Project will be financed using a results-based approach. Since EEPs
are ‘non-procurable’ expenditures involving salaries and scholarships, a procurement plan for
Component 1 is not required. Procurement under Component 2 will be carried out in accordance
with the World Bank’s Guidelines: Procurement of Goods, Works, and Non-Consulting Services
under IBRD Loans and IDA Credits and Grants by World Bank Borrowers, dated January 2011
and revised in July 2014; and Guidelines: Selection and Employment of Consultants under IBRD
Loans and IDA Credits and Grants by World Bank Borrowers, dated January 2011 and revised in
July 2014, as well as provisions stipulated in the Grant Agreement. In addition, The Bank’s
Guidelines on Preventing and Combating Corruption in Projects Financed by IBRD Loans and
IDA Credits and Grants, dated October 15, 2006 and revised in January 2011 have been shared
with the Recipient.
15
51. The Bank’s Standard Bidding Documents (SBDs), Requests for Proposals, and Forms of
Consultant Contract will be used for Component Two. Goods following National Competitive
Bidding (NCB) procedures shall be procured using the agreed SBDs for Afghanistan. It has been
agreed that in the event of a conflict between the Bank’s Procurement/Consultant Guidelines and
national procurement guidelines, as per Article 4 (2) of the Procurement Law, July 2008
(Amendments in January 2009 incorporated) of the GoA, the Bank Procurement/Consultant
Guidelines shall prevail. For each contract to be financed by the Grant, procurement methods or
consultant selection methods, pre-qualification and prior reviews requirements, estimated costs,
and time frame are agreed between the Recipient and the Bank in the Procurement Plan. The
Procurement Plan will be updated at least semi-annually or as required to reflect actual Project
implementation needs and improvements in institutional capacity.
E. Governance and Anticorruption
52. Despite significant progress in recent years, control of corruption and Government
effectiveness remain challenges. Governance capacity is moderate at the national and local
levels. However, GoA is committed to increasing transparency and accountability as part of the
PFM roadmap. Under HEDP, GoA plans to improve higher education outcomes by strengthening
governance and accountability in the sector and improving service delivery performance at the
university level to achieve meaningful and sustained outcome gains. The Project will promote
and support implementation progress and performance in critical governance and accountability
reform areas through the use of DLIs and TA, as summarized below.
53. Potential integrity risks associated with the payment of salaries and allowances to staff in
the MoHE and public universities. As these are a dominant EEP under HEDP, MoHE will (a)
work with MoF to develop and implement a time-bound action plan to increase the share of
salary payments through direct deposits into the bank accounts of staff, and (b) require its
internal auditors to carry out detailed payroll audits annually (for MoHE staff as well as three
randomly selected public universities), and issue an internal audit report to be submitted to the
MoHE and to the Bank, and formulate remedial actions to address any problems identified.
54. Better access to information through the strengthening of MoHE and university websites.
The MoHE plans to use financing under the second component for updating the MoHE and
universities’ websites in English as well as in local languages, and keep them updated regularly,
on all aspects of the delivery of higher education services to students and faculty members and
the general public. Access to public information would include: available degree programs,
degree programs in priority areas supported by HEDP, eligibility criteria for admission,
eligibility criteria for scholarships, available scholarships, special services/incentives offered to
increase enrollment of female students, student handbook, career support services, university
wide policies and procedures, and all relevant Project documents financed by the Bank. The
MoHE plans to promote transparency through regular delivery of credible information via
multiple channels on implementation progress and performance of its programs, including HEDP
and NHESP-II.
16
F. Social (including Safeguards)
55. No negative social safeguard issues and impacts of the Project are expected since there
will be no civil works financed by the Grant. While the GoA may finance civil works under the
broader NHESP-II sectoral program using GoA funds, no land acquisition is anticipated. In the
case of new facilities, construction is expected to take place on land already owned by MoHE
and universities. Before the start of any physical works, MoHE will confirm state ownership of
land and provide documentation that it is free of squatters, encroachers, or other claims or
encumbrances. In rehabilitating existing facilities or constructing new buildings, MoHE will
provide facilities to address the needs of disabled people per international standards. The MoHE
has developed an Environment and Social Management Framework (ESMF) comprising
guidelines and procedures for managing and mitigating potential negative environmental and/or
social impacts of the Project. This ESMF is also applicable to activities supporting NEHSP-II
funded under the GoA budget. The ESMF includes a Resettlement Policy Framework (RPF) that
clarifies resettlement principles, including the definition of “Project affected peoples” (i.e.,
eligibility), compensation matrix, organizational arrangements, consultations and design criteria
to be applied to sub-Projects in the event that sub-Projects require land acquisition or result in
any resettlement outcomes. The RPF customizes an existing RPF applied in a number of
ministries, the basic principles of which were approved by an inter-ministerial committee in
December 2010.
56. Poverty and Gender. There are no anticipated social risks or issues that go beyond the
coverage of the safeguard policies, but a pro-active policy to address gender equity concerns is
warranted. To address the gender gap, the Project will promote and closely monitor the
enrollment of female students in higher education, particularly those from poor and
disadvantaged backgrounds, and provinces/districts with low rates of educated girls and women.
The Project also contains a number of measures to improve female enrollment. The HEDP will
also give special preference to female academics for scholarships to pursue postgraduate degrees
in the priority degree programs.
57. Citizen Engagement. This is embedded in the Project design through the activities of
university student services centers, stakeholder feedback surveys, and the Grievance Redressal
Mechanism (GRM). The students’ services center will enable the needs of students to be
articulated and communicated to the relevant levels of university management for review and
action. The student needs and management responses will be incorporated in the Strategic
Institutional Development Plans. The relevant monitoring information on the implementation of
these plans will be shared with students. The Project stakeholder feedback surveys will cover
students and staff of universities, as well as employers. This will enable employers to
communicate their requirements for high-level expertise to universities. The GRM is described
in section H below.
G. Environment (including Safeguards)
58. Under Component 1, the Project will support critical reform areas of the NHESP II. The
Grant will not finance any civil works. However, the GoA may finance civil works as part of the
sectoral program under NHESP-II, which is expected to include the building of new physical
17
facilities such as classrooms and facilities, libraries, and ICT centers, as well as rehabilitation
and renovation of existing facilities, including dormitories for female students in several
universities across the country. The extent of these activities and their location are not known at
this time, and will depend in part on the availability of additional financial resources and future
assessments. Potential environmental impacts of infrastructure activities to be supported under
GoA’s program and financed by GoA are expected to be modest and localized. Under
Component 2, the Grant will finance technical assistance activities in support of coordination,
capacity building, and monitoring. The Project has been classified as Environment Category B in
accordance with OP 4.01.
59. MoHE has conducted an environmental assessment and has prepared a sectoral
environment and social management framework (ESMF) to address potentially negative
environmental and/or social impacts caused by construction activities undertaken by the GoA
and financed from its own resources as part of its sectoral program. The ESMF consists of
environmental and social mitigation measures, environmental and social monitoring
requirements, as well as documentation protocols. It specifies capacity building needs for
effective implementation of the ESMF. The OMST will assist MoHE in putting in place the
necessary institutional arrangements.
60. Disclosure: The ESMF (including the RPF) has been prepared in Pashto, Dari and
English and was disclosed locally on May 6, 2015 and on the Bank’s InfoShop on May 12, 2015.
H. World Bank Grievance Redressal
61. Communities and individuals who believe that they are adversely affected by a World
Bank (WB) supported Project may submit complaints to existing Project-level grievance redress
mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints
received are promptly reviewed in order to address Project-related concerns. Project affected
communities and individuals may submit their complaints to the WB’s independent Inspection
Panel which determines whether harm occurred, or could occur, as a result of WB non-
compliance with its policies and procedures. Complaints may be submitted at any time after
concerns have been brought directly to the World Bank's attention, and Bank Management has
been given an opportunity to respond. For information on how to submit complaints to the World
Bank’s corporate Grievance Redress Service (GRS), please visit
http://www.worldbank.org/GRS. For information on how to submit complaints to the World
Bank Inspection Panel, please visit www.inspectionpanel.org.
18
Annex 1: Result Framework and Monitoring
Afghanistan: Higher Education Development Project
Table 1.1: Monitoring Indicators
A. Project Development Indicators Indicator Unit of
measure
Baseline
(2014/15)
2016 2017 2018 2019 2020
1. Student enrollment in
universities in priority degree
programs for economic
development (a)
Number
(male/female)
(annual)
Total:
64,200
Males:
52,800
Females:
11,400
Total:
65,500
Males:
53,500
Females:
12,000
Total:
68,000
Males:
55,000
Females:
13,000
Total:
72,000
Males:
57,500
Females:
14,500
Total:
76,000
Males:
60,000
Females:
16,000
Total:
81,000
Males:
63,000
Females:
18,000
2. Number of public
universities developing,
implementing and monitoring
strategic five year rolling
institutional development
plans consistent with the
National Higher Education
Strategic Plan
Number
(cumulative)
Template for
University
strategic
Institutional
Development
Plans
Prepared
Template for
University
Annual
Progress
Report (APR)
Prepared
3 universities
issue strategic
Institutional
Development
Plans
according to
the template
Template for
university
APR
completed
6 universities
issue strategic
Institutional
Development
Plans
according to
the template
3 universities
issue APRs
10
universities
issue strategic
Institutional
Development
Plans
according to
the template
6 universities
issue APRs
14 universities
issue strategic
Institutional
Development
Plans
according to
the template
10 universities
issue APR s
18 universities
issue strategic
Institutional
Development
Plans
according to
the template
14 universities
issue APRs
3. Increased numbers of full
time academic staff with at
least a Master’s degree in
priority degree programs
Number
(cumulative)
700
750
800
850
925
1,000
19
B. Intermediate Outcome Indicators
(Disbursement-Linked Indicators are in bold text)
Indicator Unit of
measure
Baseline 2016 2017 2018 2019 2020
Theme 1.1 Increasing Access to Priority Degree Programs for Economic Development
1. Female enrollment in
priority degree
programs in the 1st year
of public universities
[DLI 1]
Number
(annual)
3,000
3,600
4,000
4,500
5,000
5,500
2. Number of female
students with access to
adequate residential
facilities for women on
university campuses
Number
(annual)
2,500 2,700 3,200 3,700 4,300 5,000
Theme 1.2 Modernizing and Enhancing the Quality of Teaching and Learning
3.Number of full time
academic staff trained
in, and practicing,
outcome-based
education and student
centered learning
[DLI 2]
Number
(cumulative)
Staff Development
Centers available in
universities
Training manual
completed
70 academics
trained as trainers
for the Staff
Development
Centers of
universities
250 academic
staff trained
in and
practicing
outcome-
based
education and
student
centered
learning
500 academic
staff trained
in and
practicing
outcome-
based
education
and student
centered
learning
750 academic
staff trained
in and
practicing
outcome-
based
education and
student
centered
learning
1,000
academic
staff trained
in and
practicing
outcome-
based
education
and student
centered
learning
20
4. Number of public
universities with
functional ICT centers
for ICT based higher
education
[DLI 3]
Number
(cumulative)
Scorecard for ICT
centers and ICT
based education
commenced
Score card
completed (*)
2 universities with
new and functional
ICT centers
4 universities
with new and
functional ICT
centers
7
universities
with new
and
functional
ICT centers
10
universities
with new and
functional
ICT centers
12
universities
with new
and
functional
ICT centers
Theme 1.3 Improving the Qualifications and Skills of Academic and Technical staff Members
5. Number of
scholarships awarded to
full time faculty staff for
Masters Degrees in
priority disciplines
[DLI 4]
Number
(cumulative)
Scholarship selection
criteria prepared
100
scholarships
awarded
200
scholarships
awarded
300
scholarships
awarded
150 Masters
degrees
completed
300 Masters
degrees
completed
6. Number of technical
staff completing short-
term technical and
maintenance courses
Number
(cumulative)
None
100
staff trained
200
staff trained
350
staff trained
500
staff trained
600
staff trained
Theme 1.4 Strengthening Governance, Quality Assurance and Accreditation
7. Number of
universities with
Internal Quality
Assurance Units
(IQAUs) (b) functioning
to international
standards
[DLI 5]
Number
(cumulative)
(b) No university
with an IQAU
functioning to
international
standards
2 universities with
IQAUs functioning
to international
standards
4 universities
with
IQAUs
functioning to
international
standards
8 universities
with
IQAUs
functioning to
international
standards
12
universities
with
IQAUs
functioning
to
international
standards
16
universities
with IQAUs
functioning
to
international
standards
21
8. Number of public and
private universities which
complete a new regionally
benchmarked quality
assurance cycle
Number
(cumulative)
None
Membership of an
international QA
authority.
External
institutional quality
assurance reviews
completed for 4
public and 4
private universities
and reports
disseminated by
the MoHE
External
institutional
quality
assurance
reviews
completed for
9 public and
9 private
universities
and reports
disseminated
by the MoHE
External
institutional
quality
assurance
reviews
completed for
14 public and
14 private
universities
and reports
disseminated
by the MoHE
External
institutional
quality
assurance
reviews
completed for
19 public and
19 private
universities
and reports
disseminated
by the MoHE
External
institutional
quality
assurance
reviews
completed
for 24 public
and 24
private
universities
and reports
disseminated
by the MoHE
9. Number of university
senior managerial and
administrative staff
completing short-term
leadership and
management courses in
the context of greater
authority and
accountability
Number
(cumulative)
None
75 staff trained 150
staff trained
250
staff trained
400
staff trained
500
staff trained
Theme 1.5 Stimulating Development Oriented Research
10. Development
oriented research
Projects, mainly in the
priority disciplines
[DLI # 6]
Number
(annual /
cumulative)
Universities can
implement group and
individual research
Projects among
academics
10 group research
Projects
commenced
20 individual
research Projects
commenced
10 new
group
research
Projects
commenced
20 new
individual
research
10 new group
research
Projects
commenced
20 new
individual
research
10 new group
research
Projects
commenced
20 new
individual
research
All 40 group
research
Projects
completed
All 80
individual
research
22
Projects
commenced
At least 5
group
research
Projects
completed
At least 10
individual
research
Projects
completed
Projects in
progress
commenced
At least 15
group research
Projects
completed
At least 20
individual
research
Projects
completed
Projects
commenced
At least 25
group
research
Projects
completed
At least 60
individual
research
Projects
completed
Projects
completed
(a) The priority disciplines are defined in the NHESP 2015-20.
Physical and Life Sciences (biology, chemistry and physics, geology and earth sciences)
Computing (computer science and computer programming)
Engineering, manufacturing and construction (engineering, construction, electro-mechanics, chemical technology and mining)
Health (pharmacy, general medicine, medical treatment, stomatology, and nursing)
Environmental Protection (environment and environmental engineering)
Agriculture (agriculture, veterinary forestry, crop and livestock production, agronomy, irrigation, animal husbandry and horticulture)
Communication and information technologies
Management and policy administration
English language and English literature
(b) Criteria for the assessment of IQAUs functioning to international standards are spelled out in a scorecard included in the PIM
23
Table 1.2: Disbursement Linked Indicators.
DLI Verification Protocols by Year
2016 DLIs Target and Timing Verification Procedure Data Source Verification
Responsibility
Third Party
Validation
(TPV)
DLI. Number of full
time academic faculty
staff trained in, and
practicing, outcome-
based education and
student centered
learning
a) Training manual
completed by
December 21, 2015
b) 70 full-time
academic staff
trained as trainers for
the Staff
Development Centers
of universities by
December 21, 2015
a) Verification will be based on a completed training manual by
MoHE specifically designed for outcome based education and
student centered learning, and available in English and the
national languages. The MoHE will have to provide copies of
this training manual to the World Bank.
b) Verification will be based on the number of trainers trained
and available to SDCs in universities to train academics in the
use of outcome-based education and student centered learning
in accordance with the training manual. The MoHE will have
to provide a list of the academics trained as trainers (by their
name, title, academic degree, university, phone and email
address) to the World Bank.
Verification report to be submitted by OMST to the Bank by
February 28, 2016.
a) Records of
the MOHE
Directorate of
Academic
Affairs and
OMST.
b) Records of
the MOHE
Directorate of
Academic
Affairs and
OMST.
OMST Director
in collaboration
with the
Directorate of
Academic
Affairs
a) Not
required at
this early
stage
b) Not
required at
this early
stage
DLI. Number of
scholarships awarded
to full time academic
faculty staff for Masters
Degrees in priority
disciplines
100 scholarships
awarded by
December 21, 2015
Verification is based on the number of scholarships awarded to
full time academic faculty staff to obtain a Masters Degree in
priority disciplines for both in-country and overseas degree
programs. The MoHE will have to provide official records of
the individual awardees by their name, title, academic degree,
university, phone and email address to the World Bank. At
least one-third of academic staff receiving scholarships should
be female. The eligibility criteria, selection criteria and process
for awarding scholarships will be set out in the Project
Implementation Manual.
Verification report to be submitted by OMST to the Bank by
February 28, 2016.
Records of the
MoHE
Directorate of
Scholarships
and OMST.
OMST Director
in collaboration
with the
Directorate for
Scholarships
Not required
at this early
stage
24
DLI. Number of
research Projects
conducted at public and
private higher
education institutions in
priority disciplines
Research grants
awarded for 10 group
research Projects
by December 21,
2015
Research grants
awarded for 20
individual research
Projects by
December 21, 2015
Verification is based on the number of grants awarded by
MoHE for group and individual research Projects. The MoHE’s
official records, indicating that research grants have been
awarded (including information on the awardees by their name,
title, academic degree, university, phone and email address, and
research field), will have to be provided to the World Bank.
Evidence that the grants have been awarded will consist of an
official notice of award to each grantee. The research Project
eligibility, selection criteria and process for awarding research
grants will be set out in the Project Implementation Manual.
Verification report to be submitted by OMST to the Bank by
February 28, 2016.
Records of the
MoHE
Directorate of
Academic
Affairs and
OMST.
OMST Director
in collaboration
with the
Directorate of
Academic
Affairs
Not required
at this early
stage
25
2017
DLIs Target and timing Verification Procedure Data Source Verification
Responsibility
Third Party
Validation
(TPV)
Number of full time
academic staff trained
in, and practicing,
outcome-based
education and student
centered learning
250 full-time
academic staff
trained in and
practicing outcome-
based education and
student centered
learning by
December 21, 2016
Verification will be based on the number of full time academic
staff trained in and practicing outcome-based education and
student centered learning in accordance with the training
manual. The MoHE will provide an official list of full time
academic staff trained in and practicing outcome-based
education and student centered learning (by their name, title,
academic degree, university, phone and email address)
collected from the relevant universities to the World Bank.
Third party verification will also be conducted. The TPV will
be based on a scientific sample of the degree programs taught
by the 250 academic staff trained in and practicing student
centered learning and outcome-based education. The survey
will cover both staff and students in the SCL and OBE degree
programs.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2017.
Records of the
MoHE
Directorate of
Academic
Affairs and
OMST.
Report of the
third-party
verification
study.
OMST Director
in collaboration
with the
Directorate of
Academic
Affairs
Firm
conducting
TPV
YES
Number of scholarships
awarded to full time
academic faculty staff
for Masters Degrees in
priority disciplines
200 scholarships
awarded by
December 21, 2016
Verification is based on the number of scholarships awarded to
full time academic faculty staff to obtain a Master’s Degree for
both in-country and overseas degree programs in priority
disciplines. The MoHE will have to provide official records of
the individual awardees (by their name, title, academic degree,
university, phone and email address) to the World Bank. At
least one-third of academic staff receiving scholarships should
be female. The eligibility criteria, selection criteria and process
for awarding scholarships will be set out in the Project
Implementation Manual.
Third party verification will also be conducted. This will be
based on interviews with the 200 academic staff to whom
scholarships have been awarded.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2017.
Records of the
MoHE
Directorate of
Scholarships
and OMST.
Report of the
third-party
verification
study.
OMST Director
in collaboration
with the
Directorate for
Scholarships
Firm
conducting
TPV
YES
26
Number of research
Projects conducted at
public and private
higher education
institutions in priority
disciplines
Research grants
awarded for 10 new
group research
Projects by
December 21, 2016
Research grants
awarded for 20 new
individual research
Projects by
December 21, 2016
Final research reports
submitted and
accepted for at least 5
group research
Projects by
December 21, 2016
Verification is based on the number of group and individual
research Projects awarded and completed. The official records,
indicating that these research grants have been awarded, will be
provided by the MoHE to the World Bank. Evidence that the
grants have been awarded will consist of an official notice of
award to grantee. Official evidence showing that the Projects
were completed will consist of a final report submitted by each
researcher or research team leader and accepted by the
university and MoHE.
A third party verification study will be conducted. It will
review the status of all the research Projects that have
commenced and/ or been completed.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2017.
Official
records of the
MoHE
Directorate of
Academic
Affairs and
OMST.
Report of the
third-party
verification
study.
Director OMST
in collaboration
with the
Director
Academic
Affairs.
Firm
conducting
TPV
YES
27
2018 DLIs Target and timing Verification Procedure Verification
Source
Verification
Responsibility
Third Party
Validation
(TPV)
Female enrollment in
priority degree
programs in the 1st year
of public universities
4,500 by December
21, 2017
Baseline data for this indicator has been provided by the
MoHE. This indicator refers to full-time, female student
enrollment, in the first-year of Bachelor Degree programs in
priority degree programs (identified in the PIM) in public
universities. Verification is based on the yearly enrollment data
for public universities. The MoHE will provide this data to the
World Bank.
Third-party verification to be conducted. The TPV will be
based on a scientific sample of first year female students from
the priority degree programs of all universities.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2018.
Enrollment
data from
MoHE.
Report of the
third-part
verification
study.
Director OMST
in collaboration
with the
Director
Academic
Affairs
Firm
conducting
TPV
YES
Number of public
universities with
functional ICT centers
for ICT based higher
education
7 public universities
with new and
functional ICT
centers by December
21, 2017
Verification is based on the number of ICT centers that are
functioning according to the scorecard that lists and weighs
criteria defining the notion of “functional ICT centers for ICT
based higher education”, as set out in the Project
Implementation Manual. The scorecard is based on the
following criteria: (a) computer: technician ratio; (b) % of
faculty staff able to use ICT; (c) computer: student ratio. This
data must confirm that at least 7 public universities have new
and functional ICT centers. OMST will conduct the assessment
and MoHE will provide the results of the assessment of the 7
ICT centers based on the scorecard to the World Bank.
Third party verification will also be conducted. This will be
based on interviews of a scientific sample of staff and students
in the 7 universities and observation of the facilities and
equipment of the ICT centers.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2019.
Records of the
MoHE
Directorate
for ICT and
OMST
Report of the
third-party
verification
study
OMST Director
in collaboration
with the
Directorate for
ICT in MoHE
Firm
conducting
TPV
YES
28
Number of public
universities with
Internal Quality
Assurance Units
(IQAUs) (b) functioning
in accordance with
scorecard set out in the
Project Implementation
Manual
8 public universities
with
IQAUs functioning in
accordance with
scorecard by
December 21, 2017
Verification is based on the number of IQAUs conducting
activities according to a scorecard that lists the criteria for a
functional IQAU, designed in reference to international
standards and set out in the Project Implementation Manual.
The scorecard is based on indicators for each of the following
criteria: a) IQAU Secretariat establishment; b) the
implementation status of a self-assessment mechanism for the
university; and c) QA activities of the IQAU. The maximum
score is 100. IQAUs are assessed as functional if the score is at
least 75. OMST will conduct the assessment and MoHE will
provide the results of the assessment of the 8 IQAUs based on
the scorecard to the World Bank.
Third party verification will also be conducted. This will be
based on a scientific sample of staff and students in the 8
universities.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2018.
MoHE in
collaboration
with OMST
Report of the
third-part
verification
study.
Director OMST
in collaboration
with the
Directorate for
Quality
Assurance and
Accreditation
Firm
conducting
TPV
YES
29
2019 DLIs
Target and timing Verification Procedure Verification
Source
Verification
Responsibility
Third Party
Verification
(TPV)
Female enrollment in
priority degree
programs in the 1st year
of public universities
5,000 by December
21, 2018
This indicator refers to full-time, female student enrollment, in
the first-year of Bachelor Degree programs in priority degree
programs (identified in the PIM) in public universities.
Verification is based on the yearly enrollment data for public
universities. The MoHE will provide this data to the World
Bank.
Third-party verification to be conducted. The TPV will be
based on a scientific sample of first year female students from
the priority degree programs of all universities.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2019.
Enrollment
data from
MoHE.
Report of the
third-part
verification
study.
Director OMST
in collaboration
with the
Director
Academic
Affairs
Firm
conducting
TPV
YES
Number of public
universities with
functional ICT centers
for ICT based higher
education
10 public universities
with new and
functional ICT
centers by December
21, 2018
Verification is based on the number of ICT centers that are
functioning according to the scorecard that lists and weighs
criteria defining the notion of “functional ICT centers for ICT
based higher education”, as set out in the Project
Implementation Manual. The scorecard is based on the
following criteria: (a) computer: technician ratio; (b) % of
faculty staff able to use ICT; (c) computer: student ratio. This
data must confirm that at least 10 public universities have new
and functional IT centers. OMST will conduct the assessment
and MoHE will provide the results of the assessment of the 10
ICT centers based on the scorecard to the World Bank.
Third party verification will also be conducted. This will be
based on interviews of a scientific sample of staff and students
in the 10 universities and observation of the facilities and
equipment of the ICT centers.
.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2019.
Records of the
MoHE
Directorate
for ICT and
OMST
Report of the
third-party
verification
study
OMST Director
in collaboration
with the
Directorate for
ICT in MoHE
Firm
conducting
TPV
YES
30
Number of public
universities with
Internal Quality
Assurance Units
(IQAUs) (b) functioning
in accordance with
scorecard set out in the
Project Implementation
Manual
12 public universities
with
IQAUs functioning in
accordance with
scorecard by
December 21, 2018
Verification is based on the number of IQAUs conducting
activities according to a scorecard that lists the criteria for a
functional IQAU, designed in reference to international
standards and set out in the Project Implementation Manual.
The scorecard is based on indicators for each of the following
criteria: a) IQAU Secretariat establishment; b) the
implementation status of a self-assessment mechanism for the
university; and c) QA activities of the IQAU. The maximum
score is 100. IQAUs are assessed as functional if the score is at
least 75. OMST will conduct the assessment and MoHE will
provide the results of the assessment of the 12 IQAUs based on
the scorecard to the World Bank.
Third party verification will also be conducted. This will be
based on a scientific sample of staff and students in the 12
universities.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2019.
MoHE in
collaboration
with OMST
Report of the
third-part
verification
study.
Director OMST
in collaboration
with the
Directorate for
Quality
Assurance and
Accreditation
Firm
conducting
TPV
YES
31
2020 DLIs
Target and timing Verification Procedure Verification
Source
Verification
Responsibility
Third Party
Verification
(TPV)
Number of full time
academic staff trained
in, and practicing,
outcome-based
education and student
centered learning
1,000 full-time
academic staff
trained in and
practicing outcome-
based education and
student centered
learning by
December 21, 2019
Verification will be based on the number of full time academic
staff trained in and practicing outcome-based education and
student centered learning in accordance with the training
manual. The MoHE will provide an official list of full time
academic staff trained in and practicing outcome-based
education and student centered learning (by their name, title,
academic degree, university, phone and email address)
collected from the relevant universities to the World Bank.
Third party verification will also be conducted. The TPV will
be based on a scientific sample of the programs taught by the
1,000 academic staff trained in and practicing student centered
learning and outcome-based education. The survey will cover
both staff and students in the SCL and OBE degree programs.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2020.
Records of the
MoHE
Directorate of
Academic
Affairs and
OMST.
Report of the
third-party
verification
study.
OMST Director
in collaboration
with the
Directorate of
Academic
Affairs
Firm
conducting
TPV
YES
Number of public
universities with
functional ICT centers
for ICT based higher
education
12 public universities
with new and
functional ICT
centers by December
21, 2019
Verification is based on the number of ICT centers that are
functioning according to the scorecard that lists and weighs
criteria defining the notion of “functional ICT centers for ICT
based higher education” as set out in the Project
Implementation Manual. The scorecard is based on the
following criteria: (a) computer: technician ratio; (b) % of
faculty staff able to use ICT; (c) computer: student ratio. This
data must confirm that at least 12 public universities have new
and functional ICT centers. OMST will conduct the assessment
and MoHE will provide the results of the assessment of the 12
ICT centers based on the scorecard to the World Bank.
Third party verification will also be conducted. This will be
based on interviews of a scientific sample of staff and students
in the 12 universities and observation of the facilities and
equipment of the ICT centers.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2020.
Records of the
MoHE
Directorate
for ICT and
OMST
Report of the
third-party
verification
study
OMST Director
in collaboration
with the
Directorate for
ICT in MoHE
Firm
conducting
TPV
YES
32
Number of public
universities with
Internal Quality
Assurance Units
(IQAUs) (b) functioning
in accordance with
scorecard set out in the
Project Implementation
Manual
16 public
universities
with IQAUs
functioning in
accordance with
scorecard by
December 21, 2019
Verification is based on the number of IQAUs conducting
activities according to a scorecard that lists the criteria for a
functional IQAU, designed in reference to international
standards and set out in the Project Implementation Manual.
The scorecard is based on indicators for each of the following
criteria: a) IQAU Secretariat establishment; b) the
implementation status of a self-assessment mechanism for the
university; and c) QA activities of the IQAU. The maximum
score is 100. IQAUs are assessed as functional if the score is at
least 75. OMST will conduct the assessment and MoHE will
provide the results of the assessment of the 16 IQAUs based on
the scorecard to the World Bank.
Third party verification will also be conducted. This will be
based on a scientific sample of staff and students in the 16
universities.
Verification report and TPV report to be submitted by OMST
to the Bank by February 28, 2020.
MoHE in
collaboration
with OMST
Report of the
third-part
verification
study.
Director OMST
in collaboration
with the
Directorate for
Quality
Assurance and
Accreditation
Firm
conducting
TPV
YES
33
Table 1.3: Definitions and Description of Monitoring Indictors
PDO Level Results Indicators* Description
1. Student enrollment in universities in priority degree programs for
economic development
Baseline data for this indicator has been provided by the Ministry of Higher Education
database. This indicator refers to full time student enrollment in Priority Bachelor’s
Degree Programs in public universities. The priority degree programs for economic
development have been pre-selected by the MoHE in the National Higher Education
Strategy 2015-20 and are listed in the PAD as well as in the PIM. The target values
for this indicator are annual.
2. Number of public universities developing, implementing and
monitoring strategic five year rolling institutional development plans
consistent with the National Higher Education Strategic Plan
This indicator will be measured by the issuance of: a) strategic institutional
development plans prepared in accordance with a standardized template and: b)
Annual Progress Reports (APRs) in line with a standardized template. The template
for the strategic institutional development plan and APR will be completed by the end
of the first year of the Project. The target values for this indicator are cumulative.
3. Increased numbers of full time academic staff with at least a
Master’s degree in priority degree programs
Baseline data for this indicator has been provided by the MoHE. The priority
disciplines have been pre-selected by the MoHE and are identified in the PAD and the
PIM. This indicator refers to an increase in full-time academic staff at public
universities only. The values for this indicator are cumulative.
Intermediate Results Indicators (Including DLIs)
Description
Theme 1.1: Increasing Access to Priority Degree Programs for Economic Development
1. Female enrollment in priority degree programs in the 1st year of
public universities (DLI 1)
Baseline data for this indicator has been provided by the MoHE. This indicator refers
to full-time, female student enrollment, in the first-year of Bachelor Degree programs
in priority degree programs (identified in the PIM) in public universities. The target
values for this indicator are annual.
2. Number of female students with access to adequate residential
facilities for women on university campuses
Baseline data for this indicator has been provided by the MoHE. It refers to access to
residential facilities for women at public universities only. “Adequate” residential
facilities are defined as those facilities which are provided by the universities and are
reserved for and being used by female students. It will be calculated based on the
number of women living in residential facilities provided by public universities under
the MoHE. The target values for this indicator are annual.
34
Theme 1.2: Modernizing and Enhancing the Quality of Teaching and Learning
3.Number of full time academic staff trained in, and practicing,
outcome-based education and student centered learning (DLI 2)
This indicator will be calculated based on the number of full-time academic staff who
have been trained in outcome-based education (OBE) and student centered learning
(SCL) through OBE/SCL training programs under the auspices of Staff Development
Centers (SDC) in each of the public universities. The definitions of OBE and SCL will
be provided in the training manual on OBE and SCL to be developed by the OMST.
The values for this indicator are cumulative.
4. Number of public universities with functional ICT centers for
ICT based higher education (DLI 3)
This indicator will be calculated based on a scorecard that lists and weights criteria
defining the notion of a “functional ICT center for ICT based higher education”). The
target values for this indicator are cumulative.
Theme 1.3: Improving the Qualifications and Skills of Academic and Technical staff Members
5. Number of scholarships awarded to full time academic faculty
staff for Masters Degrees in priority disciplines.( DLI 4)
For the first three years of the Project, this indicator measures the number of
scholarships awarded by the MoHE to academic staff for both “indoor (in-country)”
and “outdoor (overseas)” Masters Degrees in the priority disciplines (identified in the
PAD). For the last two years of the Project, this indicator measures the number of full-
time faculty that have completed their Masters Degrees (in the priority disciplines)
under the scholarships awarded by the MoHE in the first three years of the Project.
The target values for this indicator are cumulative. At least one-third of academics
who are awarded scholarships should be female staff. Scholarship winners would also
be under 35 years of age. The eligibility criteria, selection criteria and process for
awarding scholarships will be set out in the PIM. The target values for this indicator
are cumulative.
6. Number of technical staff completing short-term technical and
maintenance courses
This indicator refers only to technical staff at the MoHE and public universities and
will measure the number of technical staff completing short-term technical and
maintenance courses (such as IT and lab equipment maintenance etc.), over the
duration of the Project. Hence the baseline value for this target is 0. The target values
for this indicator are cumulative.
Theme 1.4: Strengthening Governance, Quality Assurance and Accreditation
7. Number of public universities with Internal Quality Assurance
Units (IQAUs) functioning in accordance with scorecard set out in
the PIM (DLI 5)
This function of IQAUs according to international standards will be based on a
scorecard that lists the criteria for a functional IQAU. The score card will be developed
by MoHE and set out in the PIM. The scorecard will be comprised of indicators on 1)
proper establishment of the IQAU, 2) implementation of the self-assessment
mechanism, and 3) QA activities of the IQAU. The target values for this indicator are
cumulative.
8. Number of public and private universities which complete a new
regionally benchmarked quality assurance cycle
This indicator refers to the number of public and private universities that have
completed a new benchmarked quality assurance cycle (which commences with
MoHE membership of an international QA network, self-assessment of a university
35
and culminates in the completion of an external quality assurance review that
subsequently will be disseminated by the MoHE). The target values for this indicator
are cumulative.
9. Number of university senior managerial and administrative staff
completing short-term leadership and management courses in the
context of greater authority and accountability
This indicator refers only to senior managerial and administrative staff at public
universities and is signifying the number who will complete short-term leadership and
management courses over the Project duration. The baseline value for this indicator is
0. The target values for this indicator are cumulative.
Theme 1.5: Stimulating Development Oriented Research
10. Number of research Projects conducted at public and private
higher education institutions in priority disciplines (DLI 6)
Over the course of the Project, the MoHE will provide both grants to individuals and
groups from public and private universities to carry out development oriented research
mainly in priority disciplines as defined in the PIM. This indicator will measure both
the commencement and completion of individual and group research Projects as
defined in the guidelines of the independent academic review committee.
Commencement of a research Project refers to the notification of award of the research
Project to the research team/researcher. The completion of a research Project refers to
the submission and acceptance of a final written report on the Project to/by the
university and MoHE.
36
Annex 2: Detailed Project Description
Afghanistan: Higher Education Development Project
Introduction
1. The overall objective of the HEDP is to increase access to, and improve the quality and
relevance of, higher education in Afghanistan. The HEDP will support the recently prepared
NHESP-II 2015-2020, which aims to develop the higher education sector by expanding
enrollment, improving quality, and orienting higher education to promote the future economic
and social development of Afghanistan. The NHESP-II spells out the MoHE’s vision, mission
and values, and outlines the strategies and interventions required to achieve the long term
objectives of the higher education sector. It builds upon the previous NHESP-I (2009-2014) and
the lessons learned from its design and implementation. The NHESP-II also takes into account
the findings and recommendations of the World Bank’s Sector Report: “Higher Education in
Afghanistan: an Emerging Mountainscape”, and other policy relevant material prepared by
research agencies, universities and development partners.
2. The HEDP’s concept, design and components have been prepared through an extensive
process of consultation and collaboration with the MoHE, MoF, representatives of universities
and HEIs from the state and non-state sectors, public and private employers, the academic
community, and major development partners active in higher education in Afghanistan. There
has also been close collaboration and synchronization between the GoA team in charge of
developing the NHESP-II, and the Bank team responsible for designing the HEDP, to ensure
alignment and consistency.
3. HEDP is organized under two components: (a) Higher Education Development Program;
and (b) Program Operations and Technical Support. These components are different in nature,
but complementary. The first component (US$ 40 million) is comprehensive and has been
designed to directly support NHESP-II. The flow of funds under this component will follow a
results-based financing arrangement. Disbursements are linked to specific results that would
contribute to the achievement of the overall objectives of the NHESP-II and the HEDP. They
will finance Eligible Expenditures Programs (EEP) selected from the MoHE’s budget, rather
than against specific investments. The second component (US$ 10 million) will assist the
implementation of the first component through coordination, technical assistance (TA), capacity
building, monitoring and evaluation, innovation and pilots, and research and communication.
The flow of funds under this component will be provided against specific investments, as is
typical under the Bank’s Investment Project Financing modality.
Component One: Higher Education Development Program (Total cost US$ 40 million).
4. This component supports the GoA’s program to develop the higher education sector as
described in NHESP-II. The NHESP-II is broad and wide-ranging in scope, and encompasses all
aspects of the higher education sector in Afghanistan. The HEDP focuses on a set of strategic
interventions under the over-arching framework of the NHESP-II. Component One is organized
under five key themes, as follows.
37
Theme 1.1: Increasing Access to Priority Degree Programs for Economic Development
5. Afghanistan has one of the lowest rates of higher education enrollment in the world
(Figure 2.1). Among countries comparable to Afghanistan, in terms of income per capita and/or
their geographical locations close to Afghanistan, only three countries, Burundi, Chad and
Eritrea, have lower higher education enrollment rates. Countries with per capita incomes closest
to Afghanistan, such as Guinea and Rwanda, have higher gross enrollment rates. There are two
main reasons for the low enrollment in higher education in Afghanistan. First, the 1980s and
1990s were a turbulent and violent period in the country, and education attainment levels
declined. This affected all levels of education, including higher education. Second, education
attainment among women is particularly low in Afghanistan. The female higher education
enrollment rate is under two percent of the relevant age-group. It is only over the last decade or
so that female students have begun to enter universities and HEIs in any appreciable number.
Figure 2.1: Higher Education Gross Enrollment in Relation to GDP Per Capita of Low and
Lower- Middle Income Countries
Source: World Bank Higher Education Sector Report (2013).
6. There are several factors which prevent women from entering and completing higher
education. These include weak security provision, insufficient transportation facilities, a lack of
counseling and support services for women in universities, and a shortage of adequate residential
Afghanistan
Bangladesh
Burundi
Chad
Congo,
Dem. Rep
Congo, Rep.
Cote d'Ivoire
Eritrea
Georgia
Guinea
India
Iraq
PakistanRwanda
South Asia
Sri Lanka
Tajikistan
Timor-Leste
Uzbekistan
Yemen, Rep.
Zimbabwe
0
5
10
15
20
25
30
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
38
and toilet facilities in HEIs. Social and cultural values, including early marriage also play a role,
but are not directly amenable to short term interventions and are outside MoHE’s ambit.
7. The higher education sector clearly needs to expand to produce the professionals,
technocrats, scientists, managers, academics, administrators, and researchers the country needs to
develop in the modern global knowledge economy. There is also strong demand for higher
education opportunities from a rapidly growing number of students completing secondary
education. It is rational to respond positively to this demand, and especially equitable when
coming from female students. However, the MoHE is aware that an uncontrolled expansion
could cause social problems later, especially if graduates are unable to find jobs that meet their
aspirations.
8. In this context, the MoHE strategy is to expand higher education enrollments, while
making sure that expansion is “controlled” in order to take into account the following
parameters: (a) the relevance of degree programs for the labor market and for the future
economic development of the country, (b) the removal of financial obstacles for applicants who
demonstrate high academic standard, and (c) a higher and fairer participation of women. The
degree programs that have been identified as national priorities in the NHESP-II are the
following:
Physical and Life Sciences (biology, chemistry and physics, geology and earth sciences)
Computing (computer science and computer programming)
Engineering, manufacturing and construction (engineering, construction, electro-
mechanics, chemical technology and mining)
Health (pharmacy, general medicine, medical treatment, stomatology, and nursing
Environmental Protection (environment and environmental engineering)
Agriculture (agriculture, veterinary forestry, crop and livestock production, agronomy,
irrigation, animal husbandry and horticulture)
Communication and information technologies
Management and policy administration
English language and English literature.
9. The expected increase in student numbers will require expansion of a variety of physical
facilities and equipment. The NHESP-II makes provision for these physical facilities and
equipment, such as lecture halls, tutorial rooms, ICT facilities and equipment, science and
medical laboratories and equipment, libraries and e-resources, residential facilities and water and
sanitation, to be funded through the MoHE budget. In addition, the following interventions
which focus on the promotion of female enrollment in priority programs will be the subject of
particular emphasis for the NHESP II.
10. Improving orientation, counseling and support services for women in universities. A lack
of support and counseling for women entering universities is a key barrier to their enrollment in
higher education. For many female students the university environment is challenging, and
requires significant adjustment in their social norms and practices. In this context, ensuring that
universities have good orientation programs and counseling systems, with trained staff and
support services, can help to create a supportive environment for young women. The capacity of
39
student services to provide the necessary counselling, guidance and support for young women
will be strengthened under the HEDP.
11. Providing transportation services to and from universities: The lack of adequate
transportation contributes to preventing female students from attending universities. The
NHESP-II plans to expand transportation facilities for female students and faculty members, for
example through the use of university buses, to travel to and from universities.
12. Providing scholarships for completing university degrees: Another barrier to female
enrollment is the lack of financial resources available for their education. The MoHE and
universities will provide financial assistance for female students from disadvantaged
backgrounds to enroll in, and graduate from, priority degree programs.
13. The provision of on-line higher education courses: In some cases, women are constrained
from physically attending universities, due to cultural reasons. Access to on-line courses would
increase opportunities for women to participate in higher education. On-line platforms such as
the MIT edX and the use of Udacity nano-degrees could be made available for higher education
in Afghanistan.
DLI:
First year female enrollments in priority degree programs in public universities (DLI 1)
Theme 1.2: Modernizing and Enhancing the Quality of Teaching and Learning
14. Afghanistan needs to improve the quality of higher education. In universities, teaching is
mainly based on traditional, teacher-centered methods. HEDP will assist universities to reflect
current international trends in higher education by introducing modern outcome-based education
(OBE) and student-centered learning (SCL). The introduction of OBE and SCL requires fresh
teaching approaches, active learning methods, greater use of higher education material and
resources, and the expansion of assessment systems in universities. Degree programs that are
considered priorities for the country’s economic development will be the first set of programs to
which OBE and SCL will be introduced. Over time, OBE and SCL will be expanded to other
degree programs.
15. The Staff Development Centers (SDCs) of universities would play an important role in
the provision of continuous professional development for university teachers and management.
HEDP would support the development of SDCs into organizations that can provide the
professional development activities required at universities, including in OBE, SCL, the use of
ICT in higher education, soft skills development, assessment and evaluation of teaching and
learning, and research methods.
16. An important prerequisite for delivering OBE and SCL is the use of technologies in
improving teaching and learning. The Internet provides both a pathway for students and faculty
to access sources of knowledge and a platform for collaboration among peers internationally. As
mentioned in the NHESP-II, ICT integration in Afghan universities is a top priority. HEDP will
40
therefore support three key components in universities: connectivity and bandwidth expansion, e-
learning, including developing web-based content, and technical and academic capacity building.
17. A key element will be to strengthen the capacity of the Afghanistan Research and
Education Network (AfgREN). AfgREN could operate a national gigabit backbone that connects
campus networks to each other, to the Internet, and to other research and education networks
globally with sufficient bandwidth for universities to be able to increasingly access and develop
web-based e-learning. There has been considerable progress in providing connectivity to
universities in Afghanistan through the SILK-Afghanistan Project jointly sponsored by NATO’s
Science for Peace and Security Programme and the U.S. Department of State. The SILK-
Afghanistan Project currently connects about two-thirds of Afghan public universities through a
national fiber optic network. It is providing the rest of the public universities with Internet
connectivity using microwave radio. Looking further ahead, Afghanistan is also seeking to join
the Trans-Eurasia Information Network (TEIN) research and education networking Project, and a
new high-speed network connection to the TEIN network backbone. HEPD could furthermore
support: video-conferencing bridges; access to digital library sources; the provision of massive
open online courses (MOOCs), and IT training courses for campus network operators.
18. Improvements to the physical facilities of selected universities, including additional IT
equipment, would be supported by the MoHE budget. Full-time academic staff members would
receive access to computing resources. Students would get greater access to well-equipped IT
centers to access learning material and resources on campus. As a matter of priority, MoHE will
develop an overall IT plan for the universities specifying the required connectivity needed to
accommodate the expansion of IT centers as well as the need for computers and additional staff
at the IT centers and their training requirement. The SDCs will moreover provide training for the
full-time faculty, staff and students in using computers efficiently for improving teaching,
learning and research. The aim is to build capacity for academics to incorporate technology
resources into their degree programs through curriculum design, teaching learning methods,
education material, and assessment strategies.
DLIs:
Number of full time academic staff trained in, and practicing, outcome-based education
and student centered learning (DLI 2)
Number of public universities with functional ICT centers for ICT based higher education
(DLI 3)
Theme 1.3: Improving the Qualifications and Skills of Academic and Technical Staff
Members
19. Well-qualified faculty members are of central importance for any high quality higher
education system. While the academic staffing of Afghan universities is improving, it still
remains poor overall. Not only is the sheer number of faculty staff in short supply with a current
student: faculty staff ratio is of 30:1 (for public universities in 2014/15) but the average
qualification of staff is below the standard expected from a genuine university for the delivery of
quality services. Over 60 percent of academic staff are only qualified to Bachelor’s degree level.
41
20. This situation is the legacy of the past few decades of violence which have witnessed the
sharp depletion of faculty staff in Afghan universities (including their emigration to foreign
countries). Because a large number of staff members with only a Bachelor’s degree have been
hired in recent years to try and keep pace with expanding student enrollments, the proportion of
faculty members with at least a Master’s degree is very low. The shortage of qualified academic
staff is one of the main constraints to rebuilding an effective higher education sector in
Afghanistan. It affects teaching as staff members with only a Bachelor’s degree seldom have an
adequate knowledge of their discipline to teach it effectively. It also affects research, as staff
with only a Bachelor’s degree have not been exposed to research practice and lack experience in
this key area of academic professional life. Women represent only a small proportion of the total
faculty staff of public universities (see Table 2.1). The share of female faculty members with
higher qualifications (i.e., above a Bachelor’s degree) is even lower than that of male colleagues.
Table 2.1: Faculty staff in public universities by level of qualification and gender (2014)
Bachelor
Degree
Master Degree Ph.D Degree Total
Males 2,958 1,292 193 4,243
Females 480 204 9 693
Total 3,238 1,496 202 4,936
Source: MoHE
21. There is an urgent need to address this problem and upgrade the level of academic
content knowledge within the existing pool of human resources available to Afghan universities.
An initial series of interventions was launched under SHEP, but targeting only a minority of
universities. These initiatives must be scaled up under the new Project. HEDP will assist MoHE
with a Human Resource Development (HRD) program focused on the delivery of training for
academic staff in universities.
22. The most efficient way to upgrade the content knowledge of academic staff already on
the payroll with low qualification is to provide them with scholarships. In most cases, such
scholarships are given to young and junior staff with only a Bachelor’s degree so that they can
reach the Master’s degree level and to more mature and senior staff with a Master’s degree so
that they can reach the Ph.D. level. This will build on the experience of SHEP which helped to
raise the qualifications of faculty staff through a successful scholarships program in overseas and
national universities.
23. Under HEDP, priority will be given to Master’s degrees, as it typically takes 2-3 years to
complete these degrees, while the completion of a Ph.D. degree can take four to six years.
Special preference for these scholarships will be given to: (a) academic staff from degree
programs identified as priorities for economic development; and (b) female academics.
Scholarships will target faculty staff of public universities and will be restricted to full-time,
regularly employed faculty staff. To be cost efficient, whenever possible, scholarships will be
for study in regional universities and Afghan universities for Master’s degrees. Cultural factors
in Afghanistan create a preference among many female academics to pursue their postgraduate
studies in-country. Blended formulae will also be sought which combine overseas and in-country
study in partnership with foreign universities. Scholarship awardees will be bonded by an
42
obligation to work in Afghan universities immediately after graduation for a specific number of
years. It is expected that at least 300 scholarships will be awarded over the Project
implementation period. The program will be organized in parallel with the recruitment of new
staff so that the absence of faculty staff pursuing full time study will not create an excessive
shortage of teachers.
DLI:
Number of scholarships awarded to full time faculty staff for Masters Degrees in priority
disciplines (DLI 4)
Theme 1.4: Strengthening Governance, Quality Assurance and Accreditation
24. The Afghan higher education sector faces governance issues at both the institutional and
national levels. Public universities have historically operated in a centralized structure with only
moderate autonomy. As the number of public universities and their enrollment grows, the
governance apparatus becomes increasingly cumbersome. Imposing top-down regulations from
MoHE has become an impediment to universities’ development and MoHE lacks the human
resources needed to regulate the rapidly expanding sector. There are currently numerous
limitations and constraints facing public universities in exercising academic and procedural
autonomy.
25. The jurisdictional situation of the Higher Education sector, defined by the 1989 Law of
Professional and Higher Education Institutes, is now out of date. A new law addresses some of
the concerns regarding the over-centralization of the sector. Meanwhile, recognizing the
constraints of an overly centrally managed and funded public university system, the NHESP-II
has laid out several measures to increase academic, procedural and financial autonomy of public
universities. The HEDP will support these measures.
26. For universities to gain autonomy and be accountable, a clear long term vision must be
developed. To that end, universities will prepare and implement strategic institutional
development plans (SPs) aimed at progressively increasing the quality and relevance of their
degree programs, research outputs and community services, and utilizing feedback from external
and internal quality assurance reviews. SPs will have to be consistent with the NHESP-II and
present a realistic and sustainable financial framework. In parallel, universities will also develop
Annual Progress Reports (APRs) which will take stock of progress towards achieving SP targets
including remedial measures in case of deviations from the Plan.
27. MoHE has drafted an implementation plan to strengthen academic and procedural
autonomy for public universities over the medium to long-term. It is a gradual plan starting with
a set of 2-4 universities and expanding to 24 universities over time. It identifies three distinct
levels of autonomy. The first includes setting annual admissions targets and selecting department
heads and faculty deans. The second expands university autonomy for the creation of new fields
of study and the dissolution of departments. The third allows universities to select their
leadership, set admission fees and create new faculties. Academic autonomy is especially
important for empowering university leaders and academics to take initiative and demonstrate
leadership for the development of universities through the adjustment and diversification of
curricula, teaching-learning methods, and assessment procedures.
43
28. A by-law on universities’ financial autonomy has been approved. It envisages the
possibility of universities retaining discretionary power over revenues they generate from
Master’s degrees, research and consulting activities and extension courses. This plan is to be
implemented gradually over the next five years also starting with the four central universities in
Kabul. Providing greater fiduciary autonomy to universities, especially the power to raise and
use funds is a powerful instrument to promote initiative and innovation in HEIs and a significant
step towards financial autonomy.
29. Universities’ institutional development will be strengthened through a Mentors Program.
Mentors would be drawn from among senior academics from foreign and Afghan universities
who will support institutional development and the achievement of the goals and targets set in
university development plans. Mentors will interact closely with universities’ senior
management through regular visits and provide written reports.
30. Establishing universities’ academic and financial autonomy will require a substantial
governance capacity building program in universities and MoHE. HEDP will assist universities
to develop the managerial and administrative skills needed for proper institutional governance,
such as leadership development, planning, budgeting, administration, procurement, and financial
management and monitoring. A systematic intensive training program will be put in place which
will consist of intensive sessions of short-term courses and knowledge sharing workshops for
faculty deans and universities’ senior administrative staff.
31. Quality assurance and accreditation (QAA) is a recent development in the Afghan
academic landscape. The current QAA in Afghanistan, while useful, is inward-oriented. The
Afghan higher education sector has been relatively isolated, and universities have not been
subject to levels of quality observed internationally. It is thus difficult for Afghan universities to
demonstrate that their quality assurance standards are of adequate rigor and substance. The future
development of the quality assurance and accreditation system needs to reflect international
developments to help raise Afghan universities to international levels. Quality assurance can help
improve many areas of the higher education sector, including the qualifications and training of
faculty members, upgrading of curricula, and assisting institutions to prioritize their needs, and
prepare strategic development plans to meet these needs. Accreditation constitutes an important
system-wide component of the accountability framework needed as public universities become
more autonomous, and also serves to regulate quality as the private higher education sector
expands.
32. As mentioned in NHESP II, the regulation, guidelines and processes of quality assurance
and accreditation were developed and piloted for HEIs under SHEP. This process needs to be
refined and developed in light of the experience of the pilot process, and expanded to all
universities. Considerably more needs to be done to make quality assurance and improvement
reflect international standards and become an integral part of university planning and
development in Afghanistan.
33. At the national level, HEPD will support the establishment of a stronger Afghanistan
Quality Assurance and Accreditation Directorate (QAA) in the MoHE. The Project will support
44
the QAA to obtain membership of an international accreditation network such as the Asia Pacific
Quality Assurance Network (APQN). Establishment of an independent QA Directorate and
interaction and collaboration with international quality assurance and accreditation networks will
help ensure that the eligibility and accreditation process of HEIs in Afghanistan is proceeding
according to international good practice.
34. At the institutional level, HEDP will support public universities to develop a
comprehensive Internal Quality Assurance System. This would involve setting up Internal
Quality Assurance Units (IQAUs) in universities which lack such units, developing IQAUs in
universities which have embryonic units, assisting universities to conceptualize, plan and
conduct institutional self-assessments, incorporating findings from QA reviews into the design
and implementation of university institutional development plans, and establishing a process of
continuous quality improvement of teaching and learning in universities. The IQAU system will
benefit from the support of experienced international and national peer reviewers through HEDP
financing.
35. Given the rising number of new private HEIs, the HEDP will also support training of
staff in MoHE who can assess and manage the key stages of registration and licensing of new
institutions based on transparent criteria.
36. Quality assurance and accreditation activities will be closely coordinated with the
Afghanistan University Support & Workforce Development Program (USWDP) higher
education Project financed by USAID that supports quality assurance and accreditation activities
in 10 universities.
DLI:
Number universities with Internal Quality Assurance Units (IQAUs) functioning to international
standards (DLI 5)
Theme 1.5: Stimulating Development Oriented Research
37. Research is a fundamental mission of universities, and a normal activity for most faculty
staff. This was the case in Afghanistan before it was virtually halted by decades of conflict. The
revival of a research culture was started on a limited scale under the first NHESP, with the
support of SHEP. However, the constraints hampering a resurgence of real and relevant research
are still formidable, namely: (a) the absence of a pool of qualified and motivated faculty staff; (b)
the lack of financial resources necessary to conduct research; (c) the isolation of Afghan
researchers from the international academic community; and (d) the lack of institutional
structures required to promote and select research, and to disseminate its results. It is timely to
address these constraints and to place research among the key missions of Afghan universities as
a regular activity. A healthier academic research environment will substantially improve teaching
and learning. In addition, research activities linked to national and provincial economic needs
can contribute directly to national growth and regional development. Further, good applied
research can have positive spillover effects beyond the universities into industry and services.
Finally, research can help universities to diversify their sources of revenues. Hence, there is a
strong case to scale up research under the NHESP II.
45
38. HEDP will support research Projects by academic staff of public and private universities.
These will be applied and development oriented Projects, mainly drawn from the priority
disciplines. However, research Projects from other disciplines, if clearly development oriented,
can also be eligible for resources. The HEDP will support about 40 group research Projects and
around 80 individual research Projects. The group Projects can include research activities by
teams of academic staff members drawn from a university, or teams of academic staff drawn
from more than one university. Collaboration on research Projects with overseas researchers
could also be supported.
39. The research system to be supported by HEDP will be results-focused and based on
competition, rather than input-based allocations. This is consistent with the principle that
research activities are more attractive and productive if they are based on incentives and demand,
rather than supply-driven. The research Projects supported under the HEDP would focus on
applied research that can directly contribute to national or provincial economic development.
The criteria for the selection of Projects will be clear, objective and transparent. All proposals for
research Projects would be reviewed by the Bank for technical adequacy prior to their financing.
DLI:
Development oriented research Projects, mainly in the priority disciplines (DLI 6)
Component Two: Program Operations and Technical Support (Total cost US$ 10 million)
40. The main purpose of this component is to assist both MoHE and universities to
strengthen their implementation capacity and achieve the objectives of the NHESP-II and the
HEDP. The component will provide support in the areas of: coordination, technical assistance
and capacity building, pilots and innovations, monitoring and evaluation, research and policy
studies, and communication.
41. Policy studies would include beneficiary feedback surveys of stakeholders such as
university staff and students supported by the HEDP and studies of employers to identify their
skill requirements and expectations of graduates. Resources for communication would enable the
higher education community to ensure that development initiatives are appropriately
disseminated to political authorities, policy makers, academics and researchers, students, and the
general public. The component would also help MoHE to design and realize policy reforms such
as piloting and evaluating innovative approaches to the promotion of greater institutional
autonomy and responsibility, and orientation of the universities in provincial towns to support
the economic development of their provinces.
42. Among the activities to be financed under this component are:
Design of a template and guideline for strategic university institutional development
plans.
Training and capacity building of university staff on preparing and implementing
strategic university institutional development plans.
Design of a template and guideline for annual university progress reports the
implementation of the strategic institutional development plans.
46
Training and capacity building of university staff for annual university monitoring and
reporting on the progress of the strategic institutional development plans.
Design of a manual, and training and capacity building, for outcomes-based and student-
centered teaching and learning.
Design and implementation of a scorecard for ICT centers.
Design and implementation of a scorecard for Internal Quality Assurance Units in
universities.
International linkages for quality assurance activities.
Orientation programs and counselling systems to help create a supportive environment
for young female students.
Support for training and capacity building of university academic, management and
technical staff.
Design and implementation of development oriented applied research Projects.
The design and implementation of stakeholder feedback surveys.
Innovations and pilot initiatives.
Design and development of a communications strategy, including improved websites for
MoHE and universities to increase access to information (in English and local
languages).
Third party validations of the disbursement-linked indicators for the HEDP.
Audits of the payroll of MoHE and samples of universities with recommendations to
address any problems identified.
43. Component 2 will also finance equipment, software, transport, and office furniture for the
OMST plus incremental operating costs.
44. The Bank will prior review the terms of reference of consultancies and the consultants
selected. All overseas human resource development programs would also be prior reviewed by
the Bank. In addition, the Bank higher education task team would review the selection of
research Projects for assistance.
47
Figure 2.2: Relationship between the Strategic Priorities of HEDP and NHESP II
48
Annex 3: Implementation Arrangements
AFGHANISTAN: Higher Education Development Project
A. Project Institutional and Implementation Arrangements
1. The HEDP will be implemented by the MoHE and the universities. The MoHE will be
directly responsible for the implementation of national level activities, including strategy
development, program formulation, policy actions, regulations, monitoring and evaluation, and
technical support. Universities, which are under the MoHE, will directly implement institution-
level activities, such as internal quality assurance reviews, human resource development of
academic and managerial staff, and the adoption of innovative teaching and learning. The
institutional arrangements are the Government’s own institutional framework for the delivery of
higher education services. The MoHE and the universities will be able to draw on expertise, both
national and international, from the Government sector, the private sector and civil society, to
strengthen the quality and effectiveness of the Project.
B. Project Management, Implementation and Oversight
2. Ministry of Higher Education. The MoHE will have primary responsibility for the
Project. The MoHE has a set of departments, units, and committees with mandates for various
education activities (Figure 3.1). The relevant departments, units and committees of the MoHE
will be responsible for implementing the sub-components of the Project that are within their
mandates. The MoHE will be assisted by the HEDP Operations and Monitoring Support Team
(OMST) to provide operational support and to coordinate and monitor Project activities,
including at university level. The responsible departments and units of the MoHE that will
implement Project sub-components are presented in Table 3.1.
3. The Project will have a Steering Committee (SC) to provide policy direction and
oversight. The SC will be chaired by the Minister of Higher Education. The other members of
the SC would be the Deputy Ministers and relevant Directors of the MoHE, and the Director of
the OMST who will be the Secretary of the SC. The DG Treasury and DG Budget, Ministry of
Finance, will be invited to the HEDP SC meetings whenever the agenda includes discussion on
the annual budget for higher education (allocations of the budget for program activities
particularly in support of the achievement of the DLI targets, approval of the annual budget and
its execution status, and discussion of the HEDP outcomes and reports on the status of
achievement of DLIs). A representative of the Ministry of Communications and Information
Technology will also be invited to join the SC meetings when the agenda includes discussion of
internet connectivity among the universities and between the MoHE and universities. The HEDP
SC will: (a) discuss, decide, and provide strategic policy guidance for the Project in line with the
development objectives of HEDP, (b) oversee financial management of the Project, (c) oversee
overall performance of the Project, review the Project Reports, and advise as needed in order to
meet the Project Performance targets paying special attention to the anticipated outcomes, results
indicators and achievement of DLI targets, (d) ensure inter-agency and inter-Governmental
coordination of Project activities, and (e) help address constraints and eliminate bottlenecks to
implementation. The HEDP SC will meet at least once every six months.
49
Figure 3.1 Ministry of Higher Education (MoHE) Organization Chart
50
Table 3.1: Key Activities and Responsible Agencies
Key Activities Responsible Agencies
Component One: Higher Education Development Program
Increasing enrollment in Priority Degree
Programs for Economic Development
Universities, Deputy Ministers for Academic Affairs, Finance
& Administration, and Student Affairs, and Directorates of
Academic Affairs, Student Affairs, Policy and Planning, and
Gender Unit
Modernizing and Enhancing the Quality of
Teaching and Learning
Deputy Ministers for Academic Affairs, Policy and Planning,
and Finance and Administration, Directorates of Policy and
Planning, Quality Assurance and Accreditation, Academic
Affairs, Coordination, IT, and Private Higher Education
Institutions, Directorate of Student Affairs; and Universities
Improving the Qualifications and Skills of
Academic and Technical Staff
Deputy Ministers for Academic Affairs and Finance &
Administration, Directorates of Quality Assurance and
Accreditation, Academic Affairs Coordination, and Plan and
Policy, Scholarships, and Universities.
Strengthening Governance, Quality Assurance
and Accreditation
Deputy Ministers for Academic Affairs, Policy and Planning,
and Finance and Administration, Directorates of Quality,
Academic Affairs, Policy and Planning, Assurance and
Accreditation, Scholarships, and Private Higher Education
Institutions, and Universities.
Stimulating Development Oriented Research Deputy Ministry for Academic Affairs, Directorate of
Academic Affairs Coordination, Department of Academic
Programs Development, Universities, and Research
Commission
Component Two: Program Operations and Technical Support
Recruitment of Technical Expertise OMST
Project Coordination and Support OMST
Monitoring and Evaluation MoHE and OMST
Arrangements for DLI verification OMST
Communication Deputy Ministries for Academic Affairs, Finance &
Administration, and for Student Affairs, OMST, Directorates
of Information, Publications and Public Relations, and
Universities Relations, and Universities and OMST
Research Projects (for priority disciplines, policy
analyses and applied studies)
Deputy Ministry for Academic Affairs, Directorate of
Academic Affairs Coordination, Department of Academic
Programs Development, Universities, and Research
Commission, OMST
51
4. The MoHE with the help of the OMST will prepare an annual work plan and training for
the Project. This work plan will indicate progress to date on Project activities, and proposed
activities and allocations of resources for the next year to achieve the Project’s targets. The
annual work plan will be discussed and agreed with the World Bank at least three months prior
to its implementation.
5. Universities. The HEDP will follow the principle of subsidiarity, where authority and
responsibility are devolved to the maximum extent possible to the frontline service delivery
agencies, in this case the universities. The key activities to improve university performance
under the Project, such as the quality assurance, capacity enhancement of academic and
managerial staff, quality and relevance of teaching and learning, and research and innovation
programs will be implemented mainly at the university level. For the implementation of Project
activities a participating university will also establish a University Steering Committee
(University SC). The University SC will be led by the Chancellor and include Vice Chancellors,
representatives from various faculties, heads of departments and other members determined by
the Chancellor. The University SC will be responsible for the overall planning, implementation,
decision making, and monitoring and evaluation of Project activities at the university level. It
will be assisted on average by two staff (an academic expert and an operations officer), financed
by the Project, to support operations and implementation of the Project activities
6. There will also be an HEDP Operations and Monitoring Support Team (OMST) to
support the Ministry of Higher Education to implement the NHESP-II and the HEDP through
coordination, technical assistance and capacity building, monitoring and evaluation, and research
and communication. The technical assistance and capacity building would cover higher
education expertise in areas such as academic affairs, policy and planning, and technology in
education. In addition, the OMST would help build the capacity of the MoHE in areas such as
procurement, financial management, internal audit, and environmental and social safeguards.
The OMST will incorporate expertise developed during implementation of the previous
Strengthening Higher Education Project (SHEP) and the ongoing Project Preparation Grant for
the Project. It will recruit staff from the academic community as well as from the open labor
market.
7. Project Implementation Manual (PIM). The MoHE has prepared a PIM to guide Project
implementation. The PIM will guide Project implementation by the various departments and
units of the MoHE and universities. The PIM includes a summary description of the higher
education sector issues that the Project addresses, a description of the Project design and
components, implementation arrangements, procurement arrangements, arrangements for
financial management including internal and external audits, and environmental and social
safeguards arrangements. Additionally, the PIM includes outcome and intermediate outcome
indicators, DLIs and protocols for verification of their achievement, other key Project progress
indicators for monitoring delivery of Project inputs and achievement of Project outputs, and
major covenants that require special attention.
8. The Bank will assist the MoHE in implementing the Project by providing careful
implementation support to help achieve improved results, better implementation and risk
management, and institutional development. The Bank will focus on providing analytical and
52
advisory support and technical advice where relevant; such support will also include impact
evaluations, policy research and studies, and technical expertise. Multi-sector activities,
including links between higher education and the labor market, and the relationship of higher
education to the promotion of social cohesion, could be explored. This would include promoting
extra-curricular activities, including sports, clubs and societies. The HEDP will also cover a
range of activities, including consultant services, technical assistance, training, workshops,
conferences, seminars, monitoring, evaluation, research and studies. The Bank will provide
technical advice as needed, as well as carry out compliance oversight to monitor and advise the
MoHE on implementing the Project with due diligence to achieve the development objectives in
conformity with the Grant Agreement.
C. Integrated Fiduciary Arrangements
Financial Management
9. An Integrated Fiduciary Systems Assessment (IFSA) was carried out that evaluated the
fiduciary systems pertaining to HEDP to determine whether they provided reasonable assurance
that the ARTF financing will be used for its intended purpose. The IFSA comprised an
assessment of the fiduciary risks relating to: (i) procurement; (ii) financial management; and (iii)
governance (including fraud and corruption risks).
10. The objective of the IFSA is to provide a reference that can be used to monitor fiduciary
systems performance during HEDP’s implementation and identify actions, as needed, to enhance
it. The conclusion of the IFSA is that the overall fiduciary framework is adequate to support
HEDP implementation and to achieve the desired results.
11. HEDP Financing and Expenditure Framework. Funding for the HEDP will be
provided through GoA’s annual budget and the HEDP funds will flow through the treasury
system. The Bank will provide support through budget line items that are accounted towards the
HEDP. The total budget for the Bank financed Project over the period July 1, 2015 – December
31, 2020 is US$50 million.
12. Budgeting and Planning. With extensive donor funded operational support and technical
assistance, the Government is able to prepare a budget that reflects the public spending priorities
and is aligned with the Afghanistan National Development Strategy priorities. Budget documents
explicitly discuss the alignment and the medium-term fiscal framework and are reviewed and
approved by the Cabinet. The core budget classification system does provide a rough picture of
general Government activities and the budget broadly reflects the principles of
comprehensiveness, unity and consistency for revenues and expenditures flowing through the
Government system.
13. In terms of operationalization, the Budget Committee of the MoHE will coordinate the
preparation of annual work plan and training, and the derivation of the annual budget for the
higher education sector including for HEDP. This committee will be made up of representatives
from relevant departments of the implementing entity, and shall report to the respective
implementing entity’s oversight body. The Budget Committee shall also coordinate quarterly
budget reviews to ensure adequate budget discipline and control. The committee will be
53
responsible for ensuring that Project expenditures for each fiscal year are captured in the
Governmental Development budget of that fiscal year. The MoHE shall get approval from the
Office of the President and the Cabinet and attach them to B27 and PCS forms at the time of
requesting yearly allotments for contracts under the Project to avoid delays in payment
processing.
(a) The MoHE FM Unit with the support of the OMST shall discharge the following key
activities as part of its role of managing and controlling the HEDP Budget:
Coordinating preparation of the Annual Work Plan and training by different
departments/units for various components of the Project.
Consolidation of Annual Budget of the Project and its submission for approval by the
Budget Committee.
Conducting Quarterly Budget Reviews and preparation of review reports for presentation
to the Standing Committee, and for annual reviews and reporting to the Project Steering
Committee.
Ensuring the carrying forward of unutilized Budget amounts to the next fiscal year.
Submission of annual work plan and annual budget to the World Bank three months prior
to the start of the fiscal year.
(b) Procurement Plan: Under Component 1, no procurement activity is expected since the
agreed EEPs are related to recurrent expenditures (e.g., salaries and scholarships). The
MoHE has prepared a Procurement Plan for Component 2 for the first 18 months of Project
implementation. It will be available in the Project’s database and in the Bank’s external
website. The Procurement Plan will be updated in agreement with the World Bank annually
or as required to reflect the actual Project implementation needs and improvements in
institutional capacity.
14. Funds Flow and Disbursement Arrangements. For Component 1, the Bank will disburse
funds to the government’s consolidated fund, adding finances for the government’s higher
education budget. ARTF financing for the project will be inclusive of taxes and at 100% up to
the amount of USD 40 million for Component One and USD 10 million for Component Two.
The government will open a bank account in USD at Da Afghanistan Bank (DAB) for receiving
Bank funds for the component. This bank account will be managed by the Special Disbursement
Unit (SDU) of Treasury Department at MoF. Once the funds are released into the account, the
funds will be then transferred to the treasury and will be consolidated with government funds
designated for the MoHE. A bank account specifically designated for this component allows the
project to track the inflow of funds from the Bank. The HEDP will be funded from the
consolidated fund allocated for the MoHE with no requirement to separately track expenditures
met from Bank financing. The MoHE following the regular government funds flow mechanism
will make requests to the SDU in MoF to release funds to MoHE. The Bank disbursements for
Component 1 will be report-based. Release of Bank funds will be based on the EEPs reported in
Interim Un-audited Financial Reports (IUFR) and fulfillment of the agreed DLIs. The MoF will
prepare the Withdrawal Applications (WA) containing the request for Bank funds and
documentation of expenditure and will submit it to the World Bank for disbursements along with
the IUFR prepared by MoHE.
54
15. For Component 2, the standard funds flow mechanism in Afghanistan will be followed in
this Project. Project funds will be deposited in a separate DA to be opened in USD and
maintained at the DAB for Component 2. The DA, in keeping with Afghan law and current
practice for other projects in Afghanistan, will be operated by the SDU in the Treasury
Department of MoF. Requests for payments from the DA will be made to the SDU by MoHE
when needed. Replenishment requests will be sent to the Bank by SDU and will be SOE based.
16. In addition to payments out of DA funds, the implementing entities can also request the
SDU to make: (i) direct payments from the Grant Account to contractors, consultants or
consulting firms, facilitating partners, and NGOs; (ii) advances to other accounts; and (iii)
special commitments for contracts covered by letters of credit. These payments will follow
World Bank procedures. All payments will be made either through bank transfers into the
account of such firms or by check.
17. The Bank funds for Component 1 will be disbursed against the following EEPs, which
are non-procurable items, as reflected in MoHE budget estimates:
(i) Salaries and allowances of staff in civil service (MoHE and public universities
and higher education institutes) except those covered by other financing sources
such as ARTF Recurrent Cost Project.
(ii) Scholarships for full time faculty staff for Master’s Degrees in Priority Programs
abroad and in-country, except those covered from other financing sources.
18. The Bank funds for Component 1 will be provided as sector budget support, utilized by
the MoHE and its agencies. Table 3.2 provides the Bank fund allocations for each year if all
agreed DLI targets are met. The Bank funds for Component 1 will be disbursed upon
achievement of two conditions: (a) the DLI targets against which withdrawal is requested have
been met; and (b) IUFRs have been submitted with information on EEPs, where total
expenditures reflected under all EEPs are greater than the amount of the Bank funds for which
withdrawal is requested.
Table 3.2: Component 1. Disbursement Amounts if 100% of Each DLI Target Is Achieved2
(US$ million) DLI On or about
March 2016 On or about
March 2017 On or about
March 2018 On or about
March 2019 On or about
March 2020
No: 1 3 3 6
No: 2 2 3 2 7
No: 3 3 3 2 8
No: 4 3 3 6
No: 5 3 3 2 8
No: 6 2 3 5
Total
7 9 9 9 6 40
In a programmatic approach (Component 1), Bank funds are comingled with Government funds
for EEPs, which means that the financial report submitted to the Bank will include the total EEP
2 See Annex 1 for DLI targets.
55
expenditures of the Government’s higher education sector for a given reporting period. Monthly
monitoring reports produced by the monitoring agent for the ARTF Recurrent Cost Project will
be used to track reimbursement amounts to MoHE to ensure that duplicate reimbursements are
not made and the total EEP for the year is more than the DLI target amount after deducting the
contribution of ARTF Recurrent Cost Project towards the EEP.
19. Methodology for Determining Disbursements against DLI Performance.
20. The six DLIs (see Table 3.2) are monetized over the five years of HEDP’s
implementation. The first year disbursement (2015) will be an advance based on a forecast of
six months for Component 2. For each of the following years, the disbursement is expected to be
up to a capped amount as given in Table 3.2, based on the achievement of the respective DLI
targets for that year, plus expenses incurred for Component 2. In the final period of the Project,
the disbursement is expected to be the final expenses incurred for Component 2. Any unused
portion of Component 2 may be reallocated to EEPs.
21. The Bank funds for Component 1 will be provided on achievement of results. The Bank
funds up to the combined value of DLI targets for a target year will be disbursed when two
conditions are fulfilled: (a) the EEPs reflected in the IUFR prepared for the period from signing
to December 21, 2015 and thereafter annually exceed the total amount allocated for the year
under the DLI program; and (b) the report verifies that the DLIs for the year have been achieved
(see Table 3.3). Delayed achievement of a DLI will delay disbursement of the corresponding
funds until evidence of achievement is provided up to one year from the original target
achievement date. Partial achievement of a specific DLI target will not result in corresponding
proportionate disbursements. In addition, for all DLIs with multiple sub-targets, all sub-targets
need to be achieved for the target year before Bank disbursements against the said DLIs can be
made. Also, there will be no award for early achievement of a DLI. Grant proceeds upon
disbursement will not be tracked separately as an expenditure category for Component 1. Table
3.3 below illustrates the disbursement schedule.
22. No advance will be provided for Component 1. However, an advance will be provided for
Component 2 at effectiveness. Throughout the Project life, the DA will be replenished through
submission of Withdrawal Applications.
23. DLI Verification. The MoHE will report on the achievement of DLIs by February 28
each year, from 2016 onwards. Verification reports by independent third-party entity or entities
will be provided by the MoHE per the agreed protocols for verifying the achievement of selected
DLIs; these reports will be submitted to the Bank on or about February 28 of each year, from
2017 onwards. The verification report(s) will be discussed with MoHE and the Bank will make a
final determination of DLI achievement by about March 15 of each year, from 2016 onwards.
The total disbursement release for a given year will be confirmed by the Bank and GoA notified
of the availability of funds. It is expected that funds will be released on or about March 31 of
each year, from 2016 onwards.
24. The Bank funds for Component 2 will be used following approval of proposed activities
(e.g., based on the agreed annual work program, and procurement and training plans) as
reviewed by the World Bank every six months. Expenditures will be reported against eligible
56
expenses—goods, consultancies, training, workshops, and incremental operating expenses. An
amount up to a maximum of the six month cash forecast will be advanced to the DA managed by
SDU at MoF based on the procurement and training plans.
Table 3.3: Indicative Disbursement Schedule (DLI Targets 100% Achieved) for
Component One
Scheduled
disbursement
date
Disbursements Based on DLI Achievements*
In or around
March 2016
EEPs exceed US$ 7 million and Year 1 DLIs are achieved, based on DLI performance
verification report for Year 1 (CY2015) and IUFR prepared for the period from Project
signing to–December 21, 2015.
In or around
March 2017
EEPs exceed US$ 9 million and Year 2 DLIs are achieved, based on DLI performance
verification report for Year 2 (CY2016) and IUFR prepared for December 22, 2015–
December 21, 2016.
In or around
March 2018
EEPs exceed US$9 million and Year 3 DLIs are achieved, based on DLI performance
verification report for Year 3 (CY2017) and IUFR prepared for December 22, 2016–
December 21, 2017.
In or around
March 2019
EEPs exceed US$ 9 million and Year 4 DLIs are achieved, based on DLI performance
verification report for Year 4 (CY2018) and IUFR prepared for December 22, 2017–
December 21, 2018.
In or around
March 2020
December 31,
2020
EEPs exceed US$ 6 million and Year 5 DLIs are achieved, based on DLI performance
verification report for Year 5 (CY2019) and IUFR prepared for December 22, 2018–
December 21, 2019.
Payment of DLIs that are achieved after the due date, if any.
Note: *For each disbursement cycle, actual amount will depend on DLI performance.
57
The fund flow arrangements for the Project are depicted in Figures 3.2 and 3.3 below.
Figure 3.2: Funds Flow Chart for Component 1
Figure 3.3: Funds Flow Chart for Component 2
World Bank
SDU (MoF) and
MOHE
Payments
Provides Audit reports, IFRs and
DLI verification reports
World Bank
Replenishes
Designated Account
for DLI
Separate
Bank
Account
World Bank
SDU (MoF)
MoHE
Consultants/
Suppliers, etc.
Payments
Designated
Account
Provides SOEs
with supporting documentation,
reconciliations,
World Bank
Replenishes
Designated
Account
Direct
payments
Invoices
58
25. Fiduciary Capacity. The Bank has gained substantial experience and understanding of
the financial management environment in Afghanistan through the large number of Projects
under implementation over the past 11 years. The Public Financial Management (PFM) Reform
II Project is the primary instrument to continue and enhance the fiduciary measures put in place
during the past years to help ensure transparency and accountability for the funding provided by
the Bank and other donors.
26. A Public Financial Management (PFM) performance rating system using 28 high-level
indicators that was developed by the Public Expenditure and Financial Accountability (PEFA), a
multi-agency partnership program comprised of the World Bank, IMF, EC, and several other
agencies, was initiated in Afghanistan in June 2005, and updated in August 2013. The system is
structured around six core dimensions of PFM performance: (i) budget credibility, (ii)
comprehensiveness and transparency, (iii) policy-based budgeting, (iv) predictability and control
in budget execution, (v) accounting, recording, and reporting, and (vi) external scrutiny and
audit. The Government-wide arrangements assessed by the PEFA studies of 2005, 2008 and
2013, which depict a framework where all public funds in the general Government sector are
controlled through a single budget which is prepared in an orderly and transparent manner,
approved by the Cabinet, and under which all uses are permitted only against due approvals of
the appropriation holder. Moreover, the basic legal framework underlying the PFM and
procurement systems has been established and public finances are by and large being used for
their intended purposes as authorized by a budget and the revenue, expenditure and cash position
of the Government are reported regularly and reliably and there is adequate external review of
the use of most donor funds, although overall audit capacity is weak. Afghanistan’s PEFA
ratings compare favorably to all other fragile states and many of the other low-income and
middle income countries.
27. The public sector, in spite of considerable efforts to reform its core functions, remains
extremely weak outside of Kabul. The lack of qualified staff in the civil service and the absence
of qualified counterparts in the Government after 30 years of war and conflict are binding
constraints. Delays in reforming the pay structure and grading of civil servants have severely
crippled the public administration of the country. Domestic revenues lag behind expenditures by
a factor of ten to one. Large-scale corruption could emerge to undermine the Government’s
efforts to enhance aid flows through national accounts. The capacity to track expenditure and
monitor outcomes has improved, but the MoHE needs strengthening if progress toward the
attainment of national development targets is to be made. Currently, 75 percent of external
revenues bypass Government appropriation systems.
28. The World Bank is financing a Financial Management Advisor to assist the MoF, an
Audit Advisor to assist the Supreme Audit Office (SAO), and a Procurement Advisor to assist in
Procurement-related activities. Also, an Internal Audit function is being developed within the
MoF with World Bank financing. USAID, and earlier the Indian Aid Assistance Program, is
financing a team of consultants and advisors to assist the Da Afghanistan Bank in local as well as
foreign currency operations. The activities carried out under the existing Public Administration
Projects have helped the Government to ensure that appropriate fiduciary standards are
maintained for public expenditures, including those supported by the Bank and the donor
community. Progress has been slower than expected in knowledge transfer to the civil servants.
59
It is expected that the Advisors will continue to be required for the medium term. Challenges
still remain in attaining the agreed upon fiduciary standards and also to further enhancing them.
29. Financial management, disbursement and procurement will be the responsibility of
MoHE, but technical assistance will be provided for these functions through consultants
recruited under HEDP. The arrangements are already in place, and have been reviewed and
apprised several times by FM and procurement teams from the Bank. The FM staff members in
the OMST are conversant with Bank requirements, including submission of IUFRs, and other
financial statements, based on their prior experience in handling FM and disbursement aspects of
the previous Bank financed Project (SHEP) and the ongoing Project Preparation Grant (PPG) for
HEDP.
30. Procurement Arrangements. The Bank has gained substantial experience and
understanding of the procurement environment in Afghanistan through its involvement in the
interim procurement arrangements put in place under the Emergency Public Administration
Project (2002) and through working with the institutions currently responsible for procurement
functions, including the Afghanistan Reconstruction and Development Services (ARDS). As part
of the broader review of Afghanistan’s Public Finance Management (PFM) system, the Bank
carried out two assessments, in June 2005 and September 2007, of the procurement environment
in the country based on baseline and performance indicators developed by a group of institutions
led by the World Bank and at the Development Assistance Committee (DAC) at OECD.
31. The first key issue identified through the procurement assessments was lack of ownership
and lack of a procurement champion in the Government, which is a serious impediment to
reform and to inter-ministerial dialogue. A second, related issue is the lack of capacity in the line
ministries, as evidenced by their inability to define and communicate effectively their desired
functional specifications/terms of reference in their procurements. The lack of capacity is also
evident in the local private sector -- while the number of bids is reasonably high, there is a lack
of understanding about how to apply public procurement rules.
32. Government Reforms. A new Procurement Law (PL), reflecting international best
practice, was adopted in November 2005 that radically transformed the legal and regulatory
frameworks governing procurement. In accordance with the law, GoA established a Procurement
Planning Unit (PPU) under the MoF to provide oversight for the PL’s implementation. PPU has
issued several circulars regarding implementation of the PL including “Rules of Procedures for
Public Procurement” (Circular: PPU/C005/1386 of April 12, 2007) and “Procurement Appeal
and Review Mechanism” (Circular: PPU/N001/1385 of March 18, 2007). PPU and MoF have
developed several standard bidding documents (SBDs), standard requests for proposal (SRFPs),
and standard requests for quotation (SRFQs) for national and international procurement of
goods/works and consulting services following national procedures as per the PL’s Glossary of
Procurement Terms in English and Dari. The MoF has now mandated the use of: (i) SBDs for
Goods and Works (Circular PPU/C024/1388 of June 10, 2009); (ii) SRFQs (Circular
PP/C026/1388); and (iii) SRFPs (Circular PPU/C029/1388 of January 13, 2010). A Procurement
Management Information System (PMIS) has been developed and is being piloted in three line
ministries. In addition, a PPU Web site will facilitate publication of procurement notices and
60
contract awards in addition to similar actions under the ARDS-Web site and the Web sites of the
line ministries, as applicable.
33. In the absence of adequate capacity to manage procurement activities effectively, a
central procurement facilitation unit (ARDS–PU) has been established under the Ministry of
Economy to support line ministries and Project implementing agencies. The Bank and the
Government have agreed on a program for country-wide procurement reform and capacity
building, leading to the transition from centralized to decentralized procurement services. The
above was implemented by an international consultant under the supervision of PPU/MoF and
financed under the Public Administration Capacity Building Project (PACBP) and the Public
Finance Management Reform Project (PFMRP). The consultant has conducted several basic,
intermediate, and advanced level training programs. The implementation of the procurement
reform component of the PACBP/PFMRP should be considered with due priority to ensure that
fiduciary standards are further enhanced and that capacity is developed in the Government to
maintain these standards.
34. The Procurement Law has been revised in July 2008 and amended in January 2009 and
issued as a new Law by the Ministry of Justice and was published in the Official Gazette
Number 957, 29.10.1387 (18 January 2009). The revised “Rules of Procedures for Public
Procurement” have been issued as circular PPU/C027/1387 of November 18, 2009.
35. Assessment of the Agency’s Capacity to Implement Procurement. The MoHE will have
overall responsibility for all procurement for Component 1 under the Project, with support from
the OMST. An assessment of the capacity of the current procurement staff (a Procurement
Specialist and a Procurement Officer) was carried out by the Bank’s designated procurement
specialist (DPS) for the Project in July 2014. The assessment shows that the staff has satisfactory
experience in handling non-complex and medium value contracts; however, they have not dealt
with large value, complex procurement. The OMST procurement staff will directly handle
procurement of consultant and non-consultant services, and goods, under Component 2 of the
Project. These contracts are expected to be small and non-complex in nature.
36. It is also noted that the PCU (previously for SHEP and now for PPG) has an HR unit
which deals with hiring of consultancy services. In the HEDP, the recruitment of consultants will
be shifted to the Procurement Unit of the OMST.
37. Based on the above the procurement risk under the Project is high.
38. To mitigate procurement risk, the following action plan has been agreed:
(a) The OMST will recruit one Procurement specialist and one Procurement officer to assist
with the procurement for the HEDP. With the recruitment of these two procurement staff, the
procurement capacity of the MoHE/OMST should be sufficient for handling procurement
under Component 2. Keeping in mind the decree 45 of the President concerning streamlining
of the procurement units of line ministries, the procurement staff of the OMST will gradually
be transferred to the MoHE Procurement Directorate but will be working solely for the
Project. This will help to further develop capacity of MoHE’s Procurement Directorate.
61
(b) The World Bank procurement staff will conduct several procurement clinics and face to
face training for procurement staff of the MoHE/OMST. This will help to further enhance the
capacity of the staff and reduce procurement risk.
(c) Until the MoHE is in a position to receive accreditation by the PPU to handle its own
procurement, most of the high value procurement in MoHE will be carried out in
coordination with the ARDS.
39. Based on the above capacity building activities and arrangements, the procurement risk
under the Project will be Substantial.
40. Accounting and Reporting. The SDU will maintain a proper accounting system of all
expenditures incurred along with supporting documents to enable the Bank to verify these
expenditures. The Finance and Administration Department of MoHE with the assistance of the
financial management consultants (in OMST), will: (i) supervise preparation of supporting
documents for expenditures, (ii) prepare payment orders (Form M16), (iii) obtain approval for
M-16s by the Minister or Deputy Minister depending on the payment amount, and (iv) submit
them to the Treasury Department in MoF for verification and payment. While original supporting
documents are attached to the Form M16, the Project is required to make and keep photocopies
of these documents for records retention purposes. The FM Advisor in the MoF/SDU will use the
Government's computerized accounting system, AFMIS, for reporting, generating relevant
financial statements, and exercising controls. AFMIS is now the sole means of executing budget
transactions in the center and in all provinces as it is available in real time to all central
administrative units and moustoufiats (Government units in the Provinces). It incorporates and
automates budget recording, appropriation and allotment controls (including provincial
allotments), general ledger recording and check printing (manual checks replaced with system
generated checks). A key strength of AFMIS and a major accomplishment for MoF was the
development and enforcement of a central vender registration data base in AFMIS whereby all
vendors to Government (firms or individuals) must process valid tax numbers. This information,
in addition to establishing the bona fides of vendors, has had the ancillary benefit of enforcing
tax withholding.
41. Related to the form of payment, all vendor payments are made in favor of the vendor
bank accounts in commercial banks similarly confirming the bona fides of vendors and reducing
transaction costs. Direct transfer of salaries to bank accounts is also in place for more than 50
percent of civil servants; thereby reducing the incidence of intermediary salary pay offs and
ghost employees.
42. The Finance and Administration department of MoHE, with the assistance of the
financial management consultants (in OMST) will generate required monthly, quarterly, and
annual reports.
43. The HEDP’s FM Manual will be a chapter in the PIM. It will include: (i) roles and
responsibilities for all FM staff, (ii) documentation and approval procedures for payments, under
the overall Project, (iii) Project reporting requirements, and (iv) quality assurance measures to
62
help ensure that adequate internal controls and procedures are in place and are being followed.
The FM Chapter in the PIM will also establish Project financial management in accordance with
standard Afghan Government policies and procedures including the use of the Government Chart
of Accounts to record Project expenditures. The use of these procedures will enable adequate
recording and reporting of Project expenditures. Overall Project accounts will be maintained
centrally in SDU, which will be ultimately responsible for recording of all Project expenditures
and receipts in the Government’s accounting system. Reconciliation of Project expenditure
records with MoF records will be carried out monthly by the Finance and Administration
department of MoHE in assistance with the financial management consultants in OMST.
44. Financial statements and Project reports will be used for Project monitoring and
supervision. Based upon the FM arrangements of this Project, Financial Statements and Project
Reports will be prepared monthly, quarterly, and annually by the MoHE’s Finance and
Administration Department with the assistance of the financial management consultants (in
OMST). These reports will be produced based on records kept on the Project’s computerized
accounting system after due reconciliation to expenditure statements from SDU (as recorded in
AFMIS), client connection data and bank statements from DAB.
45. The quarterly Interim Un-audited Financial Reports (IUFRs) will show: (i) sources and
uses of funds by Project Component, reconciled with the Bank account, and (ii) reconciliation
with the client connection data and DA balances reconciled with the bank records. Separate
IUFRs will be prepared for Components 1 and 2. For Component 1, the IUFR will be prepared
for a six month period and will be due within 90 days of the end of period. For Component 2, the
IUFR will be prepared quarterly and will be due within 45 days of the end of each quarter.
46. The Government and the Bank have agreed on a pro-forma report format for all IDA and
ARTF financed Projects; a final customized format for HEDP will be developed for the HEDP.
The MoHE finance unit will prepare the IUFRs as per the agreed format, have them reviewed
and approved by the Director of Finance and Administration of MoHE and the Director, OMST.
47. The annual Project accounts to be prepared by SDU from AFMIS after due reconciliation
to records maintained at the Project, will form part of the consolidated Afghanistan Government
Accounts for all development Projects. This is done centrally in the MoF Treasury Department,
supported by the Financial Management Advisor.
48. Internal controls including internal audit. Project–specific internal control procedures
for requests and approval of funds will be described in the FM Chapter of the PIM including
segregation of duties, documentation reviews, physical asset control, and cash handling and
management.
49. The Finance and Administration Department of MoHE, with assistance from the financial
management consultants in OMST will be responsible for coordinating FM activities of the
Project with the SDU and World Bank. It will be responsible for implementing the covenants of
the Grant Agreement. This entails managing funds, fund requests, and allocations efficiently,
effectively, and transparently, monitoring and reporting on FM-related results indicators,
63
facilitating training and capacity building for FM and internal audit staff, and responding to any
other World Bank requests.
50. Annual Project financial statements will be prepared by SDU/MoF presenting activities
pertaining to the Project as separate line items with adequate details to reflect the information of
expenditures within each component.
51. The MoF has authorization to disburse funds from the Grant. Specimen signatures of
authorized signatories in MoF are on file.
52. The internal audit scope will include conducting tests to ensure accuracy, completeness
and eligibility of expenses submitted in SOEs under Component 2 and the EEPs in Component 1.
The internal audit will also conduct reviews of the control environment, including reporting
structures, to ensure accuracy in all reports (internal and external use) emanating from the
Project.
53. Internal audit of the Project will be carried out by the internal audit department of MoHE
with assistance from an internal audit consultant recruited under the Project (OMST). As salaries
are a major portion of the EEPs, the higher education sector as a whole is expected to adhere
fully to the financial rules and regulations relating to payroll. The internal auditors are expected
to carry out a detailed payroll audit annually of the MoHE and three universities randomly
selected in each cycle and issue an internal audit report; the report will be submitted to the
Minister of Higher Education with a copy to the Bank. A legal covenant will ensure that
acceptable internal audit arrangements will be maintained. The internal audit team will report
directly to the Minister of Higher Education.
54. The MoHE has a procurement controller provided by PPU and he/she will be responsible
for controlling all procurement action under the Project. Moreover, PPU regularly conducts
procurement compliance audit of all ministries including MoHE. The Bank will also review
high value contracts as agreed in the procurement plan and will conduct Post Procurement
Review (PPR) each year.
55. Contract management. The MoHE is very weak in contract management. This area
needs close monitoring and support. The Bank is planning to conduct contract management
training in FY16-17 for all Projects financed by the Bank and the HEDP procurement staff will
also be invited to participate in the training.
56. Project Audit. The Project will be audited by the Supreme Audit Office (SAO) of
Afghanistan. In the latest PEFA Assessment in 2013, the external audit function was rated “C+”.
57. The PFEM Law requires the SAO to prepare and submit an independent report on the
previous fiscal year’s financial statements within six months from the end of the year. The SAO
carries out financial, compliance and performance audits. For SY1391 (2012/13), the financial
audit covered both expenditures and revenues for all central and provincial budgetary entities
and Kabul municipality. The compliance audit covered all central and provincial agencies, SOEs,
municipalities, tax and revenue agencies. The SAO completed the audit of the GoA financial
64
statements of SY1391 (2012/13) and submitted the report to the Cabinet within the prescribed
timeline of six months from the end of the year.
58. Significant capacity-building and training measures have been put in place through
technical assistance under donor-funded Projects. The capacity and technical competence level
of civil service at the SAO is improving, but is not yet sufficient to conduct audits on its own to
satisfy international standards.
59. There is a process of follow-up on audit recommendations of the Project audits, but this is
not very streamlined or systematic. Although the number of entities that respond on time and
effectively to audit observations has significantly improved over the years, there are still entities
that do not respond on time or do not implement recommendations, resulting in some of the
issues being repeated in the following year’s audit. The MoF plays an active role in following up
with ministries to respond to SAO audit reports.
60. The SAO of Afghanistan will perform the external audit for the Project. The AG has
agreed to issue two audit reports for Component 1 and 2, within 6 months of the end of the
Recipient’s fiscal year; this will be a legal covenant in the Grant Agreement and tracked in the
FM portfolio monitoring system. For Component 1, a consolidated audit report, including an
audit opinion and management letter on the consolidated financial report, will be prepared. The
consolidated financial report will contain higher education sector expenditures incurred by the
MoHE under the EEPs. As Bank funds are indistinguishable from Government funds, the
consolidated financial report submitted to the Bank will include all sector expenditures under
EEPs from all sources pertaining to MoHE. For Component 2, an audit report including an audit
opinion and management letter on Project financial statements will be prepared. The objective of
the audit report for Component 1 is to obtain assurance that the accounts present a true and fair
view of expenditures identified under the EEPs and are free from material misstatements. The
basis of the consolidated audit report and management letter will be the findings generated by
auditing EEP expenditures in MoHE.
61. The proposed operation is the second World Bank-funded Project in the MoHE.
Currently there are no overdue audit reports or ineligible expenditures to be settled by MoHE.
62. Procurement arrangements under the Project will also be subject to regular internal and
external audits/reviews. Annual external audits by the SAO also include audit of the
procurement actions under the Project. In addition to prior reviews of procurement actions above
the agreed thresholds, the Bank will also carry out annual ex-post reviews of a sample of
contracts randomly selected. The PPU in the MoF is another source which conducts procurement
review of all ministries including the MoHE. Audit findings are usually shared with procurement
entity for comments/response.
63. Capacity Building. The assessment identified certain capacity and control weaknesses
within the implementing agency. Under Component 2, the Project will support the recruitment of
one procurement specialist and one procurement officer to help carryout procurement work
under Component 2 and help strengthen staff capacity through on-the-job training.
65
64. The World Bank procurement staff will conduct several procurement clinics and face to
face training for procurement staff of the MoHE/OMST. This will help to further enhance the
capacity of the staff and reduce procurement risk.
Financial Management Covenants
65. MoF shall submit audited financial statements for Component 1 and Component 2 of the
Project within six months of the end of each fiscal year. The Project’s audit reports will cover the
financial statements, the Designated Account, and SOEs, in accordance with terms of reference
agreed with the Bank.
MoHE will prepare interim unaudited financial reports (IUFRs) (a) for Component 1
covering a six month period, and furnish it to the Bank within 90 days after the end of
each financial year, and (b) for Component 2 covering the period of 3 months and furnish
it to the Bank within 45 days after the end of each calendar quarter; copies of the IUFRs
will also be sent to SDU-MoF.
The MoHE has ensured that key FM staff members are in place and will be retained
throughout the duration of the Project in order to ensure smooth Project implementation;
Component 2 will finance additional FM staff as needed including internal auditors and
an internal control officer.
66. Regular Supervision Plan. During Project implementation, the Bank will supervise the
Project’s financial management arrangements. The team will:
Review the Project’s quarterly interim unaudited financial reports, DLI verification
report, the Project’s annual audited financial statements and auditor’s management
letter.
Review the Project’s financial management and disbursement arrangements (including
a review of a sample of SOEs and movements on the Designated Account and bank
reconciliations) to ensure compliance with the Bank's minimum requirements.
Review agency performance in managing Project funds to ensure that it is timely,
accurate, and accountable. Particular supervision emphasis will be placed on asset
management and supplies.
Review of financial management risk rating and compliance with all covenants.
67. Frequency of Procurement Supervision. There will be two Implementation Support
Missions per year, in addition to the usual ongoing prior review supervision to be carried out
from the Bank’s Country Office.
68. Mitigating fraud and corruption, Transparency Accountability and Participation.
MoHE will ensure that all invitations for bid, EOIs are given wide publicity using its own
website, ARDS, United Nations Development Business (UNDB) and national newspapers.
Furthermore, the REOIs/vacancy notices for individual consultants will be published on the
following websites: www.ards.gov.af www.acbar.org, www.jobs.af, www.devnetjobs.org and
www.reliefweb.int.
66
69. With regard to procurement complaints for Component 2 of the HEDP, MoHE will be
guided by Article 71-72 of the Procurement Law-2008 and Bank Guidelines. MoHE will inform
the Bank as soon as a procurement complaint is received and also the final outcome is
subsequently arrived at. MoHE will institute a system to register and monitor the receipt and
resolution of complaints. The progress of such actions will be reviewed by the Bank during
implementation support/supervision missions.
70. MoHE will prepare a Procurement Monitoring/Activity Schedule for Procurement of
Goods and Selection of Consultants under Component 2 in SEPA. The Monitoring/Activity
Schedule shall be updated on a monthly basis. The above schedule will facilitate monitoring of
the time taken for procurement/selection activities and trigger remedial actions to address delays.
It has been agreed that all bid/proposal evaluations will be completed within: (i) 5-7 working
days following shopping procedures; (ii) 15 – 20 working days following NCB/ICB procedures;
(iii) 10 working days for individual consultants; and (iv) 15 working days for firms for REOI
evaluation, 21 working days for Technical Evaluation Report (TER) and 20 working days to
conclude the contract negotiations. There will be no more than 20% deviation between the
planed and actual procurement conducted under the Project.
71. All the above indicators will be monitored during Implementation Support Missions for
the Project.
72. Governance and Anticorruption (GAC) Agenda. All the contract opportunities and
contract awards will be widely published in the internet, ARDS website, and when required in
the UNDB.
73. MoHE will set up a system to ensure that staff/consultants who handled the procurement
process/contract management/contract execution do not join the consultants/contractors. This
will be reviewed during implementation support missions. Other actions are: (a) implementing
agencies’ officials/staff to be alerted about any fraud and corruption issues; (b) bidders to be
alerted against adopting fraud and corruption practices; (c) award contracts within the initial bid
validity period, and closely monitor the timing; (d) take action against any corrupt bidder in
accordance with law of the Government of Afghanistan; (e) preserve records and all documents
regarding public procurement, in accordance with the provisions of the Procurement Law; (f)
publish contract award information in UNDB online, ARDS’s website and agencies’ websites
within two weeks of contract award; (g) ensure timely payments to the
suppliers/contractors/consultants and impose liquidated damages for delayed completion; and (h)
enforce a procurement filing system.
74. MoHE Procurement unit will make every effort to achieve the procurement accreditation
certificate from the PPU.
75. Governance and Anticorruption. As noted in the World Bank Group’s Interim Strategy
Note (ISN) for FY12-14, despite significant progress, control of corruption and Government
effectiveness remain daunting challenges. Governance is further undermined by poor oversight
and by interference by power-brokers at both national and local levels. On corruption, ratings
from various sources, including those from Transparency International, local surveys as well as
67
media reports, indicate that corruption remains a serious problem. Government itself
acknowledges deep problems with corruption – but is also hampered by the need to use political
appointments and other means to keep a balance among the country’s diverse population and
power centers. As in other conflict affected countries, progress will take time. However, it is
important to note that the Government is committed to increasing transparency and
accountability as part of the PFM roadmap.
76. As noted earlier, the FM and procurement arrangements for the Project rely on
arrangements that have proven to be effective in other Projects in Afghanistan, including specific
actions to mitigate corruption risks. In addition, under HEDP, the Government plans to improve
higher education outcomes by strengthening governance and accountability in the higher
education sector and improving service delivery performance at the university level in order to
realize meaningful and sustained gains in outcomes. The Project in turn will promote and support
Project implementation progress and performance in critical governance and accountability
reform areas through the use of DLIs and TA resources as summarized below.
77. Potential integrity risks associated with awards of scholarships. For scholarships to full
time faculty staff for Masters Degrees in priority disciplines (out of the country and in-country),
with the TA support and design of the DLI, the MoHE will develop a comprehensive eligibility
criteria and process for the selection of faculty members, satisfactory to the Bank, and make it
available to all faculty members on university web-sites and the MoHE website. For scholarships
for students for undergraduate education, and for faculty members for post-graduate degrees
abroad supported by sources other than HEDP, the MoHE plans to also use the above process to
mitigate potential integrity risks and improve confidence in the program.
78. Potential integrity risks associated with the payment of salaries and allowances to staff in
the MoHE and public universities. As salaries and allowances are a dominant EEP in HEDP, the
MoHE will (i) work with the MoF to develop and implement a time-bound action plan to
increase the share of salary payments through direct deposits into the bank accounts of staff, and
(ii) require its internal auditors to carry out detailed payroll audits annually (for MoHE staff as
well as three randomly selected public universities) and issue an internal audit report that will be
submitted to the Minister of Higher Education as well as to the Bank, and formulate remedial
actions to address problems that are identified.
79. Access to information through strengthening of MoHE/universities websites. Component
2 will support MoHE and universities for updating their websites in English as well as in local
languages, and keep them updated regularly, on all aspects of the delivery of higher education
services to students and faculty members and general public. Access to public information would
include: available degree programs, degree programs in priority areas supported by HEDP,
eligibility criteria for admission, schedule of entrance examinations, eligibility criteria for
scholarships, available scholarships, special services/incentives offered to increase enrollment of
female students, student handbook, carrier support services, university wide policies and
procedures, and all Project documents financed by external donors including regular Project
progress reports on implementation status, information on how to file a complaint/provide
feedback about the delivery of higher education services and other relevant matters. The MoHE
plans to promote transparency through the regular delivery of credible information via multiple
68
channels on implementation progress and performance of its programs including HEDP and the
NHESP II, as well as the open display of critical pieces of information at the university level.
The TA will also support targeted formal information and communications program about the
higher education subsector.
Table 3.4 Action Plan to Mitigate Fiduciary Risks: Financial Management and Procurement
Area Performance Indicator Baseline Monitoring Benchmark Planning and
Budgeting
Implementation/budget plan for the
program with detailed costing and
timelines developed by MoHE
Annual budget allocation for the
program made in accordance with
the implementation plan
Nil Approved implementation budget/plan;
Allocation for the program activities in the
annual budget from FY 2016 onwards
Funds Flow Funds committed for the program
activities in annual budget released
to MoHE, funds released for
completed and verified DLIs
Quarterly budget execution reports and
timely release of tranches as per DLI
achievement.
FM Capacity Effective functioning of MoHE
FM unit, FM consultants recruited
and training to civil servants
Nil Smooth implementation of the Project, FM
consultants recruited for the Project and
are integrated within the MoHE finance
unit, training and capacity building plans
developed for civil servants
Accounting
and Reporting
Process of recording accounting
transactions and documentation,
and submission of agreed financial
reports.
Nil Computerized accounting system that will
be utilized by the MoHE unit to maintain
records and generate required reports and
data maintained in AFMIS by SDU.
Submission of monthly, quarterly and
annual financial reports.
Internal
controls
including
Internal audit
Internal audit consultants to
strengthen the capacity of the
internal audit unit of MoHE and
prioritize reviews aimed at (a)
improving reporting and
reconciliation controls, (b)
strengthening asset management
and payroll systems.
Nil An internal audit consultant to be
recruited, internal audit reports shared
with the Bank bi-annually
Program Audit Program external audits carried out
in a timely manner
Nil Program audited financial statements
available within six months after close of
the financial year
Bidding
Documents/RF
Ps
No bidding/RFPs documents are
ready for the first year of the
Project. Project will immediately
start preparation of the documents
for all major contracts to be
procured in the first year of the
Project.
Good pace of disbursements in the first
year starting at effectiveness. .
Wider
participation
by potential
bidders
MoHE will ensure that all
invitations to bid and EOIs are
given wide publicity using its own
website, ARDS, United Nations
Development Business (UNDB)
and national newspapers.
Transparency is maintained and potential
bidders are informed.
Wider bidders participation is ensured
69
Furthermore, the REOIs/vacancy
notices for individual consultants
will be published on the following
websites: www.ards.gov.af
www.acbar.org, www.jobs.af,
www.devnetjobs.org and
www.reliefweb.int
Procurement
plan/
Monitoring/Ac
tivity Schedule
MoHE will prepare a Procurement
Monitoring/Activity Schedule for
Procurement of Goods and
Selection of Consultants under
Component 2 in SEPA. The
Monitoring/Activity Schedule shall
be updated on a monthly basis.
There will
be no more
than 20%
deviation
between
the planed
and actual
procureme
nt
conducted
under the
Project.
The schedule will facilitate monitoring of
the time taken for procurement/selection
activities and trigger remedial actions to
address delays
Procurement
plan/
Monitoring/Ac
tivity Schedule
It has been agreed that all
bid/proposal evaluations will be
completed within: (i) 5-7 working
days following shopping
procedures; (ii) 15 – 20 working
days following NCB/ICB
procedures; (iii) 10 working days
for individual consultants; (iv) 15
working days for firms for REOI
evaluation; (v) 21 working days for
Technical Evaluation Report
(TER); and (vi) 20 working days to
conclude the contract negotiations.
There will
be no more
than 20%
deviation
between
the planed
and actual
procureme
nt
conducted
under the
Project.
These indicators will be monitored during
Implementation Support Missions for the
Project
Quality of the
technical
specifications
& TOR
The technical specifications &
TORs are usually of low quality.
The technical international staff to
be hired under the Project will help
to improve this aspects.
Quality of specifications and TORs are
improved and issues during contract
implementation are reduced
80. Procurement for HEDP. Procurement under Component 2 of the Project will be carried
out in accordance with the World Bank “Guidelines: Procurement of Goods, Works, and Non-
Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers”
dated January 2011, revised July 2014; and “Guidelines: Selection and Employment of
Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated
January 2011, revised July 2014, and provisions stipulated in the Financing Agreement. In
addition, the Bank’s Guidelines on Preventing and Combating Corruption in Projects Financed
by IBRD Loans and IDA Credits and Grants, dated October 15, 2006, revised in January 2011,
have been shared with the Recipient. The Bank’s Standard Bidding Documents (SBDs),
Requests for Proposals, and Forms of Consultant Contract will be used. It has been agreed that in
the event of a conflict between the Bank’s Procurement/Consultant Guidelines, as per Article 4
70
(2) of the Procurement Law, July 2008 (Amendments in January 2009 incorporated) of the GoA,
the Bank Procurement/Consultant Guidelines shall prevail. For each contract to be financed by
the Grant, the different procurement methods or consultant selection methods, the need for pre-
qualification, estimated costs, prior review requirements, and time frame are agreed between the
Recipient and the Bank in the Procurement Plan. The Procurement Plan will be updated at least
semi-annually or as required to reflect the actual Project implementation needs and
improvements in institutional capacity.
81. Component 1 of the Project will be financed using a results-based DLI approach. EEPs
are ‘non-procurable’ expenditures involving salaries and scholarships. A procurement plan for
Component 1 therefore is not required. The Bank will periodically review the overall
procurement system in the higher education sector to ensure that recommendations arising from
the fiduciary review are being addressed. The MoHE with the support of its OMST will develop
and maintain a Master Plan (MP) and Time Schedule (TS) in accordance with the National
procedures.
82. Procurement under Component 2 of the Project would largely include the selection of
consultant services (firms and individuals), non-consultant services, and some goods, and
incremental operating costs of the OMST. Goods will mainly include information technology
and office support equipment, vehicles, and office furniture. MoHE/OMST has prepared a
Procurement Plan and a Training Plan for Component 2 (Technical Assistance); these will be
finalized during negotiations.
83. Procurement of Goods. Goods to be procured under Component 2 of HEDP would
include computer hardware/software, vehicles, office furniture, etc. Procurement of goods will
be done using the Bank’s SBD for Goods for all contracts following International Competitive
Bidding (ICB) procedures. National SBDs agreed with or satisfactory to the Bank will be used
for the procurement of goods following NCB procedures. Shopping shall be in accordance with
paragraph 3.5 of the Bank’s Guidelines. Any contract estimated to cost more than US$200,000
equivalent shall be procured following ICB procedures. Any contract estimated to cost more than
US$50,000 equivalent and less than US$200,000 shall be procured following NCB procedures.
Any contract estimated to cost less than US$50,000 equivalent shall be procured following
shopping procedures. Goods that meet the requirements of paragraph 3.7 of the World Bank
Procurement Guidelines may be procured following direct contracting procedures with prior
agreement with the Bank.
84. Procurement of Works: No civil works are planned under Component 2 of the Project.
85. Selection of Consultants. The Project under Component 2 would finance several
consultancy assignments.
86. Firms: Consulting firms may be hired under the Project for third party
verification/validation of DLIs, quality assurance and accreditation assessments, beneficiary
satisfaction surveys, tracer studies of graduates from the universities, and support for the ICT
centers.
71
87. Individual Consultants. Key managerial, technical, and fiduciary, individual consultants
will be hired under the Project. Hiring of managerial, academic, technical, procurement, financial
management, monitoring and evaluation, internal audit and legal staff shall be prior reviewed by
the Bank regardless of contract value.
88. MoHE under the ARTF financed Project Preparation Grant has hired national contracted
staff and international individual consultants. MoHE will conduct a performance appraisal for
each consultant, and based on the result of the performance, he/she will be either terminated or
rehired following Single Source Selection (SSS) under HEDP.
89. Short lists for services estimated to cost less than US$100,000 equivalent per contract
may be composed entirely of national consultants in accordance with the provisions of paragraph
2.7 of the Consultant Guidelines. The selection methods applicable for consultants are QCBS,
QBS, CQS, LCS, FBS, and SSS for firms as per Section V of the Bank’s Guidelines for
Individuals. The threshold for CQS will be less than US$300,000 equivalent per contract.
90. Training and Workshops: The main training activities for the Project under Component
2 will include: (i) capacity development of academic staff in universities to practice modern
student-centered, outcomes-based teaching and learning methods; (ii) continuous professional
development training through the Staff Development Centers (SDCs) for university teachers
(e.g., in research methods, teaching and learning in higher education, ICT in higher education,
student counselling, soft skills, and assessment and evaluation) and for the management cadre of
universities (e.g., in planning, budgeting, administration, procurement, financial management
and monitoring); (iii) strengthening of internal quality assurance in universities; (iv) capacity
building of senior academics and management cadre of universities to prepare and implement
strategic development plans which progressively increase the quality and relevance of their
degree programs and research outputs, and to formulate and institute governance reforms; (v)
training in research methods through the SDCs; (vi) orientation programs for women before
entering university; and (vii) workshops and seminars related to Project implementation and
coordination and M&E. Training activities will be carried out based on an annual training plan
satisfactory to the Bank. The Bank procurement guidelines will not apply unless a consultant is
selected to carry out the training. In case training activities are carried out by a consultant, the
Bank’s procurement guidelines will apply to the selection and employment of a consultant for
the delivery of training activities under Component 2 of the Project.
91. Incremental Operating Costs. The incremental operating costs financed under the
Project would be procured using the implementing agency’s administrative procedures, which
were reviewed and found acceptable to the Bank. The operating costs will include operations and
maintenance of equipment and vehicles, hiring of vehicles, office rent, costs of consumable, fuel,
office utilities and supplies, payments for OMST contractual staff, bank charges, and advertising
expenses, but will exclude any salaries and allowances of civil servants. However, travel costs
related to the Project would be covered.
92. Research Projects. The applied research Projects for priority disciplines and studies,
including Third-Party Verification (TPV) of the DLI targets, will be financed using the
procedures agreed with the Bank.
72
Table 3.5: Prior Review Threshold
Type of procurement Prior review threshold in USD Remarks
Goods & non-
consultancy service 500,000
Equivalent or above Per
contract
Consultant firm 200,000
Equivalent or above Per
contract
*Individual Consultant 100,000
Equivalent or above Per
contract
* Hiring of managerial, academic, technical, monitoring and evaluation, procurement, financial management,
internal audit and safeguards staff shall be prior reviewed by the Bank regardless of contract value.
Format of the Procurement Plan:
Country: Afghanistan
Borrower: Islamic Republic of Afghanistan
Project Name: Higher Education Development Project
Grant No.:
Project Implementing Agency (PIA): Ministry of Higher Education
Bank’s approval Date of the procurement Plan [Original June 29th, 2015; Revision 1:]
Date of General Procurement Notice: ………………..
Period covered by this procurement plan: 18 Months (July 1, 2015 to December 31, 2016)
73
Table 3.6: Procurement Plan for Consulting Services for the First 18 Months of Project
Implementation
1 2 3 4 5 6 7
Re
f.
No
.
Description of Assignment Estimate
d Cost
(US$)
No.
Contra
cts
Selectio
n
Method
Review
by
Bank/Pr
ior/Post
Expecte
d
Proposa
l
Submiss
ion Date
Individual Consultants
1 Student Centered Learning and
Outcome Based Education Expert 36,000
01 IC
Prior
review
July 31,
2015
2 Academic & Managerial Development
Expert 24,000
01 IC
Prior
review
July 31,
2015
3 Quality Assurance & Accreditation
Expert 24,000
01 IC
Prior
review
July 31,
2015
4 Strategic Planning & Research Expert 24,000
01 IC
Prior
review
July 31,
2015
5 Procurement Specialist 34,000
01 IC
Prior
review
July 31,
2015
6 Finance Management Specialist 34,000
01 IC
Prior
review
July 31,
2015
7 Environmental Safeguards Specialist 34,000
01 IC
Prior
review
July 31,
2015
8 Social Safeguard & Gender Specialist 34,000
01 IC
Prior
review
July 31,
2015
9 Internal Auditor
34,000
01 IC Prior
review
July 31,
2015
Consultant Firms
10 Stakeholder Feedback Survey 50,000
01
CQS
Prior
review
April
30,2016
11 Third Party Validation (TPV) of DLIs 100,000
01
CQS
Prior
review
August
31, 2016
74
D. Environmental and Social (including safeguards)
93. Environmental Assessment. The Grant will not be used to finance civil works. However,
the GoA may finance civil works as part of the sectoral program supported by the Project under
Component 1, which is expected to include building of new classrooms, facilities, and
rehabilitation and renovation of existing facilities, and dormitories particularly for female
students in several universities across the country. The extent of these activities and their
location are not known at this time, and will depend to a large extent on availability of additional
financial resources and assessments in the future. Potential environmental impacts of
infrastructure activities to be supported under the GoA’s program and financed by the GoA are
expected to be modest and localized. The Project has therefore been classified as Environment
Category B in accordance with OP 4.01.
94. Social (including safeguards). No negative social safeguard issues and impacts of the
Project are expected since there will be no civil works financed by the Grant. While the GoA
may finance civil works under the broader NHESP-II sectoral program using GoA funds, no land
acquisition is anticipated. In the case of new facilities, the expansion of infrastructure will take
place on land already owned by the MoHE and public universities. Before any start of such
physical works, MoHE will confirm the state ownership of the land in question as well as
provide documentation that it is free of squatters, encroachers, or other claims or encumbrances.
In rehabilitating existing facilities or constructing new buildings, the MoHE will provide
necessary facilities to address the needs of disabled people per international standards.
95. The MoHE has conducted an environmental assessment and has prepared a sectoral
environment and social management framework (ESMF) to address potentially negative
environmental and/or social impacts that could be caused by the construction activities
undertaken by the GoA and financed from its own resources as part of its sectoral program under
NHESP-II. The ESMF consists of environmental and social mitigation measures, environmental
and social monitoring requirements, as well as documentation protocols, and specifies the
capacity building needs for effective implementation of the ESMF. The ESMF includes a
Resettlement Policy Framework (RPF), based on the Afghan legal framework for land
expropriation and consistent with the World Bank’s Operational Policy on Involuntary
Resettlement (OP 4.12). The RPF clarifies resettlement principles, including definition of
“Project affected peoples” and compensation matrix, organizational arrangements, and design
criteria to be applied to sub-Projects in the event that sub-Projects require land acquisition or
result in any resettlement outcomes. The RPF is based on an existing RPF applied by various
ministries for World Bank funded Projects, and customized to MoHE needs. The ESMF also
stipulates requirements (as per national laws and World Bank operational policies) regarding
recruitment of labor, safety and health guidelines and non-discrimination on the basis of
gender/ethnic/religious/regional group in recruitment. During preparation, the MoHE has
consulted the draft ESMF with a range of sectoral stakeholders and incorporated their feedback
in the final version. The Bank reviewed and cleared the ESMF. The MoHE disclosed the ESMF
locally in English and local languages (Dari and Pushto) on May 06, 2015, and forwarded it to
the Bank for disclosure on InfoShop. The Bank disclosed the ESMF on InfoShop on May 12,
2015.
75
96. The OMST will assist MoHE in putting in place institutional arrangements defined in the
ESMF. OMST will recruit an Environmental Safeguards Specialist and a Social Safeguards and
Gender Specialist who will be responsible for overall implementation of the EMSF during
Project implementation. They will help set up within the MoHE satisfactory arrangements for
preparing site specific environmental and social management plans (ESMPs) if and when needed
for any construction activities during implementation of the Project, and help build capacity of
relevant staff within the Policy and Plan Department of MoHE and universities for handling
environmental and social safeguards aspects. They will also help the MoHE/ University staff in
monitoring of implementation of mitigating measures. They will prepare relevant sections of
reports on the implementation of the EMSF and ESMPs, for inclusion in regular Project progress
reports prepared by the OMST. In order to start developing long term human capacity in
environmental and social safeguards, the Project includes higher education in environmental
management, land management and related areas in priority degree programs to be promoted
under the Project.
97. Poverty and Gender. There are no anticipated social risks or issues that go beyond the
coverage of the safeguard policies, but a pro-active policy to address gender equity concerns are
called for. While the actual number of women in tertiary education has nearly doubled, the
proportion has not changed since 2003 when the World Bank reported 19 percent of students in
university were women3. Hence, the absolute gap between the number of male and female
students enrolled in universities is widening over the years.
98. In order to address this widening gap, the Project will promote and monitor closely the
enrollment of female students in higher education particularly from poor and disadvantaged
backgrounds, and from provinces/districts with very low rates of educated women. Outreach
activities to Secondary Schools at the regional and district level with orientation programs for
women before entering university, plus improved security and transportation arrangements for
female students, and proper residential and sanitation facilities will be promoted under the
Project. An Employment Guidance facility will also be available at University level for male and
especially female graduates to strengthen their job-seeking efforts. The Project will also give
special preference to female academics in scholarships for postgraduate degrees in the priority
degree programs.
99. Citizen Engagement. This is embedded in the Project design through the activities of
university student services centers, stakeholder feedback surveys, and the Grievance Redressal
Mechanism (GRM). The students’ services center will enable the needs of students to be
articulated and communicated to the relevant levels of university management for review and
action. The student needs and management responses will be incorporated in the Strategic
Institutional Development Plans. The relevant monitoring information on the implementation of
these plans will be shared with students. The Project stakeholder feedback surveys will cover
students and staff of universities, as well as employers. This will enable employers to
communicate their requirements for high-level expertise to universities.
3 Afghanistan. Women’s Role in Afghanistan’s Future – Taking Stock of Achievements and Continued Challenges,
Washington, D.C: World Bank, 2014.
76
E. Monitoring & Evaluation.
100. The HEDP will devote special attention to the monitoring and evaluation of results and
outcomes. The objectives of monitoring and evaluation are to: (a) track the implementation
experience of the Project, and strengthen the efficiency of implementation where needed; (b)
assess the results achieved under each Project component and sub-component; and (c) evaluate
the overall outcomes of the Project. Monitoring and evaluation activities will commence from
the beginning of the HEDP and continue until Project completion, and will assess Project inputs,
processes, results, intermediate outcomes and outcomes.
101. A detailed results framework has been developed for the Project and is presented in
Annex 1. This framework comprises a set of Project outcomes and intermediate outcomes and
outputs, with annual targets, to provide a continuous picture of Project performance. The results
indicators focus on critical milestones and will be used to monitor the implementation
performance of different themes of reforms for the higher education sector supported under
HEDP. The outcomes constitute the key performance indicators that reflect the overall
development objectives of the Project.
102. The monitoring and evaluation capacity in the MoHE is moderate. The Program and
Operations Technical Support component under HEDP will help strengthen MoHE’s capacity for
M&E. It will finance an M&E specialist in the MoHE/OMST to collect data from relevant
departments of MoHE and universities, compile and analyze the data according to HEDP’s
outcomes and results indicators, and help build capacity of the MoHE for monitoring and
evaluation.
F. Verification of DLIs
The verification of DLIs will consist of two sets of activities.
103. First, the OMST would provide a monitoring report on the status of achievement of DLIs
each year. This report would contain comprehensive information on the relevant university
academic and management staff and students for each DLI. This would include all staff pursuing
Masters degrees with scholarships financed under HEDP, all academic staff trained in and
practicing OBE and SCL, and all teams and individuals engaged in research Projects. The report
would also contain detailed information on the activities of ICT centers and IQAUs in
universities, the scorecards for “functioning ICT Centers” and “functioning IQAUs”, and the
estimated number of students and staff who have benefited from these activities. The information
on staff and students would be gender differentiated. Along with the report the OMST would
provide supporting documents for the achievement of DLIs, such as the manuals on OBE and
SCL, copies of letters of award and acceptance for Master’s scholarships and research Projects,
and later in the Project copies of Master’s degree graduation certificates and research outputs
(e.g. journal articles, books and monographs, and where relevant specimens/photographs of
physical outputs such as inventions), and manuals and guidelines and records of IQAUs and ICT
centers.
104. Second, there would be third-party verification (TPV) studies conducted by a consultant
firm and procured and funded under Component 2 of the HEDP. The TORs for the TPV would
77
be developed by the OMST and agreed with the Bank. The TPV studies would commence from
the DLIs due by December 21st, 2016and be conducted each year thereafter. The TPVs in each
year would cover all universities relevant for the DLIs up to that point in time. Within each
university the TPVs would include surveys of academic and managerial staff and students drawn
on the basis of a scientific sample, and stratified by gender. The TPVs would also include site
visits to: (a) IQAUs, (b) ICT centers, (c) relevant research sites, and (d) lecture halls, classrooms
and laboratories practicing SCL and OBE.
105. The TPV reports would state whether each DLI has been achieved or not. If any DLI has
not been fully achieved, the report would assess the extent of achievement and recommend time
bound actions to complete the DLI.
106. As this is the first DLI-based operation in Afghanistan, firms could seek expertise in the
management of TPVs for DLI-based Projects from overseas if necessary, such as in the early
years of the TPV process. Such expertise is available in the South Asia region, where there are a
number of DLI-based education Projects in India, Sri Lanka, Pakistan, Bangladesh and Nepal.
G. Role of Partners.
107. MoHE is a member of the Human Resource Development Board (HRDB) together with
the Ministries of Education; Labor, Social Affairs, Martyrs and Disabled, and Women’s Affairs.
HRDB serves as the platform for strategic and policy dialogue between the Government and the
development partners, such as the Bank, USAID, AusAID, SIDA and Canada, on human
resource development. Key policy directions in support of the Government initiatives, including
higher education, are discussed in HRDB and the Technical Working Groups. USAID continues
to be the other significant partner in financing higher education. The Afghanistan University
Support & Workforce Development Program (USWDP) funded by USAID was launched in
2013. It is a five year program that covers ten public universities as well as institutional
development support to MoHE. The Bank has been collaborating and coordinating closely with
the USAID education team since the inception and now the design and preparation of HEDP, to
ensure complementarity of efforts. This dialogue builds on collaboration that existed between
SHEP financed by IDA/ARTF and the Higher Education Project (HEP) funded by USAID. The
higher education sector is also supported by countries in the region such as India and Turkey,
other countries including Malaysia, Thailand, Germany, France, and bilateral organizations such
as the German Federal Enterprise for International Cooperation (GIZ). This support comes
essentially in the form of relatively small scale projects focusing on a particular department or
providing scholarships for a specific program. NHESP II, prepared by the MoHE, would serve as
the mechanism for aligning and harmonizing the role and support of all the partners with the
strategic priorities of the sector.
78
Attachment 1
Integrated Fiduciary Assessment Template; Project Preparation (IFAP)
Higher Education Development Project, Ministry of Higher Education
Fiduciary Element Responsibility
FM, PR or
Joint
Risk
Rating
Comments & Risk
Mitigation
Residual Risk
Rating
1. Joint Fiduciary Aspects
1.1 Fiduciary Capacity (PRAMS RF4 & FME 7)4
1.1.1 Is there adequate fiduciary staff based on the profile
of the Project, in terms of numbers and experience, to
implement the Project, with clear definition and
segregation of functions between PR and FM?
Joint High Financial management and
Procurement capacity is low. Project
needs to hire qualified national and
international procurement and
financial management staff who shall
provide training to the civil servants
as well as transfer knowledge and
build capacity.
Substantial
1.2 Planning and Budgeting (PRAMS RF5 & FME 1)
1.2.1 Are realistic budgets and procurement plans prepared
and reconciled? Joint High Implementation/budget plan for the
program with detailed costing and
timelines developed by MoHE;
Annual budget allocation for the
program made in accordance with the
implementation plan. The
Government has had revenue
shortfalls in recent years. This can
reduce the availability of GoA
funding for higher education.
Procurement under Component 2 for
the Project will be carried out in
accordance with the World Bank’s
Guidelines. The MoHE has prepared
the Procurement Plan but it has not
High
4 References are to the 11 PRAMS Risk Factors and the 7 FM Elements, Attachments 3 and 4
79
Fiduciary Element Responsibility
FM, PR or
Joint
Risk
Rating
Comments & Risk
Mitigation
Residual Risk
Rating
yet prepared the bidding
documents/RFPs for the first year of
the Project implementation. The
MoHE needs to start preparation of
the bidding documents and RFPs for
all major contracts to be procured
during the first year of the
implementation immediately.
1.3 Internal Control (including Internal Audit)(PRAMS
RF 1,2 &3; FME 3)
1.3.1 Are effective internal controls in place, as jointly
assessed by financial management and procurement staff?
These include internal audit, clearly defined accountability,
quality control processes, and availability of complete
records of the procurement and financial management
processes.
Joint High Internal audit consultants to
strengthen the capacity of the internal
audit unit of MoHE and prioritize
reviews aimed at (a) improving
reporting and reconciliation controls,
and (b) strengthening asset
management and payroll system.
The Ministry has a procurement
controller provided by PPU and
he/she will be responsible for
controlling all procurement action
under the Project. Moreover, PPU
conducts regular procurement
compliance audits of all ministries
including MoHE. The Bank will also
review high value contracts as agreed
in the procurement plan and will
conduct Post Procurement Review
(PPR) once per annum.
Substantial
1.4 Contract Management (PRAMS RF10, FME 2 & 3) Joint High The MoHE is weak in contract
management. This area needs close
monitoring and needs capacity
building.
The Bank is planning to conduct a
Substantial
80
Fiduciary Element Responsibility
FM, PR or
Joint
Risk
Rating
Comments & Risk
Mitigation
Residual Risk
Rating
contract management training in
FY16-17 for all Bank financed
Projects, and the HEDP procurement
staff will also be invited to participate in the training.
1.5. Project Management and Governance:
1.5.1 Audit Arrangements:
1.5.1.1 External Audit of Project Financial Statements
(PRAMS RF 11, FME 6) Joint High Program audited financial statements
available within six months after
close of the financial year.
Moderate
1.5.1.2 Technical Audits (PRAMS RF 11, FME 6) Joint High DLI verification reports prepared by
a third party for the agreed DLIs in
accordance with the agreed timelines.
Moderate
1.5.2 Mitigating Fraud and Corruption –
Transparency, Accountability and Participation
(PRAMS RF 7 & 11, FME 6)
Joint High A comprehensive action plan to
mitigate fraud and corruption risks
through enhanced Transparency,
Accountability and Participation is
developed in the PAD
Substantial
1.5.3 Grievance Redress Mechanisms – complaints
handling (PRAMS RF 9) and grievance redress
(PRAMS RF 11, FME 6)
Joint High With regard to procurement
complaints for Component 2 of the
HEDP, MoHE will be guided by
Article 71-72 of the Procurement
Law-2008 and Bank Guidelines.
MoHE will inform the Bank as soon
as a procurement complaint is
received and also the final outcome is
subsequently arrived at. MoHE will
institute a system to register and
monitor the receipt and resolution of
complaints. The progress of such
actions will be reviewed by the Bank
during implementation
support/supervision missions.
Substantial
81
Fiduciary Element Responsibility
FM, PR or
Joint
Risk
Rating
Comments & Risk
Mitigation
Residual Risk
Rating
2. Procurement Processes and Procedures (PRAMS RF
6,7 &8)
PR High For Component 2 the Project will
follow World Bank Procurement
Guidelines and for Component 1 the
client has an internationally accepted
procurement law and procedure.
Substantial
3. FM Considerations
3.1 Funds Flow (FME 4) FM High Funds committed for the program
activities in annual budget released to
MoHE, funds released for completed
and verified DLIs
Substantial
3.2 Accounting and Financial Reporting (FME 2 & 5) FM High Computerized accounting system that
will be utilized by the MoHE unit to
maintain records and generate
required reports and data maintained
in AFMIS by SDU. Submission of
monthly, quarterly and annual
financial reports
Substantial
FM Risk rating FM High Substantial
Procurement Risk rating PR High Substantial
Overall Fiduciary Risk Rating Joint High Substantial
82
Annex 4: Implementation Support Plan
Afghanistan: Higher Education Development Project
Strategy and approach for implementation support
1. The Bank’s implementation support strategy has been developed based on the structure
and contents of the HEDP and its risk profile. It aims to provide continuous support to the MoHE
to implement the operation efficiently and flexibly to increase the development impact of the
HEDP through: (a) improved results, (b) better implementation and risk management, and (c)
increased institutional development, while ensuring compliance with the Financing Agreement
for the Project.
2. The implementation support strategy is based on several mechanisms that will enable
enhanced implementation support to the Government, and timely and effective monitoring of
implementation progress and results. The implementation support comprises: (a) implementation
support review missions, (b) regular technical meetings and field visits by the Bank’s team based
in the Country Office in Kabul with the Task Team Leader and technical specialists located
within the region and at the Bank’s Headquarters joining through video conferences and audio as
needed, (c) MoHE reporting based on the HEDP’s internal monitoring, (d) independent third
party monitoring/validation on a selective basis, and (e) internal audit and FM reporting. The
implementation support activities will focus on the educational, operational and economic
content of the HEDP, the fiduciary and safeguards requirements, and the mitigation of risks
identified in the assessment of risks for the Project, especially at the program level (sector
strategy and policies), the technical design of the Project, institutional capacity, governance, and
fiduciary and security risks.
3. Implementation Support Missions. The Bank, together with MoHE, will formally
review HEDP implementation semi-annually (usually around March/May and
October/November). However, more frequent missions are expected at least in the first year of
the Project life (e.g., for the Project launch workshop, and for extensive technical advice in
support of the institutional reforms supported by this first DLI based operation in Afghanistan,
including for the recruitment of consultants for the Project). These missions will be
complemented by: (a) visits from the Bank’s CO staff and technical consultants, and (b)
continuous communication and follow-up between missions.
4. The main semi-annual missions will cover, among other things, (a) strategic policy
dialogue on major higher education sector matters, including education quality, enhancement of
qualifications of academic staff, accreditation, governance reforms of universities, research and
innovation, enrollment in priority degree programs, financing and expenditures, and institutional
strengthening and performance, (b) review of the HEDP implementation status, including
progress in implementation of the TA Component, and progress and performance to date with
respect to the PDO-level and intermediate results indicators, legal covenants, DLIs, monitoring
indicators, EEPs, and the use of TA funds, as well as reviewing the FM reports, and progress on
procurement and environment and social safeguards, and (c) advising on any actions and
measures (including risk mitigating measures) required to keep Project implementation on track,
progress on pace, and performance at expected levels. One month prior to the implementation
83
support missions, OMST will provide a comprehensive progress report to the Bank on Project
activities, issues encountered and proposed corrective actions for improvement, an updated work
program and budget, and copies of studies and evaluations completed since the last mission;
these reports will be short and issues-focused, complementing the information included in the
regular Project progress reports submitted by August 15 (covering the period January – June 30)
and February 15 (covering the period July 1 – December 31) each year.
5. In the periods between the main semi-annual missions, shorter missions with limited
advance notice and more specific objectives of high/urgent priority may be carried out mainly by
Kabul-based staff; the Task Team Leader based in the region and other staff at the HQ may
participate in these shorter missions through video-conference and audio as needed. Such
missions are expected to be frequent in the first year of the Project as implementation of
institutional reforms gets underway to provide technical support. The Bank team will also
participate in the MoHE’s consultations with universities, and make visits to the universities
particularly those outside Kabul, if the security situation permits and in full compliance with the
security rules in effect at that time.
6. Mid-term Review: A mid-term mission will be conducted on or about April 2018. This
mid-term review will serve as an opportunity for the Government and the Bank to reconsider the
efficacy and effectiveness of the Project design and implementation approach and make
adjustments as needed. During this mission, the Government and the Bank, based on an in-depth
assessment of overall Project performance including Project management and institutional
performance, will discuss the extent to which Project objectives are being fulfilled and remain
achievable within the Project timeframe and/or continue to be relevant, and agree on appropriate
actions regarding the future of the Project, including significant restructuring if needed.
7. To ensure high quality implementation support, the Bank team will comprise not only
higher education specialists and an economist, but also specialists in FM, procurement,
safeguards, governance, and monitoring and evaluation, with the specific team composition for
each mission determined based on implementation support requirements at that time.
8. Aide memoires: Findings and recommendations from the semi-annual review missions
will be recorded in Aide Memoires. Findings of missions carried out during the periods between
the semi-annual review missions, and of regular interactions between the CO staff and the
implementing agency will also be recorded in Mission notes or minutes or something
comparable in scope to the traditional aide memoires as a tool of official records. These records
will also be referenced in the Aide Memoire of the semi-annual mission immediately following
them. The Aide Memoires will be issues oriented and cover Project implementation progress and
performance following a standardized format (implementation status overview, evidence based-
assessments of results including DLIs and issues regarding results reporting, implementation
status by themes of Component 1 and status of Component 2, review of compliance with
safeguards policies, review of compliance with procurement and FM aspects, compliance with
legal covenants, risks and risk management measures, and pending issues and actions). The Aide
Memoires will provide specific suggestions to the MoHE for corrective actions to be taken, by
whom and by when. The Aide Memoires will benefit from monitoring and Project progress
84
reports, following agreed formats and guidelines, submitted by OMST and by the public
universities through OMST, on a semi-annual basis by February 15 and August 15 each year.
9. Project implementation supervision and support under a variable security
environment: The prevailing security conditions in Afghanistan are a key source of difficulty
for effective Project implementation supervision and support. If there is deterioration in the
security conditions to the extent that semi-annual missions are not possible or their frequency
and timing, mission team size or scope of these missions has to be limited, the Bank team will
increase its use of the following options to provide implementation support to the implementing
agency and supervise the Project:
(a) Intensification of implementation support and supervision by the Bank’s CO staff with
the Task Team Leader and other technical specialists in the region and at HQ participating
via regular audio and video conferences as well as continuous communications by emails and
Skype to virtually review and discuss Project implementation progress and performance with
the Government. The MoHE and most public universities have access to video conferencing,
and if needed, Project TA funds can be used to finance video-and audio-conferencing
equipment to facilitate virtual reviews.
(b) Contracting of consultancy firms or third parties (financed through funds from the ARTF)
to aid in assessing Project implementation performance and monitoring progress at the
MoHE and universities levels.
(b) Contracting of individual technical consultants to be based in Kabul (subject to security
situation permitting and in full compliance with the security rules in effect at that time),
financed from the ARTF funds to ensure local, continuous advisory and technical back-
stopping support to the client.
(d) When deemed critical, short visits by teams from the MoHE (and selected universities as
needed) overseas, e.g., Dubai or Delhi, to meet with the Bank team.
10. If the need arises, additional security measures will be devised and tested as the Bank
team’s experience operating in a challenging security environment grows.
Implementation support plan
11. The Bank team members are based in the Bank’s Country Office in Kabul and other
country offices in the region to ensure timely, efficient and effective implementation support to
the client. Team members based at the Bank’s Headquarters will also support Project
implementation. Formal implementation support missions will be carried out semi-annually,
with more frequent technical implementation support missions during the first year of the
Project. Detailed inputs from the Bank team are outlined below.
12. Technical support. The Bank will maintain continuous dialogue and provide technical
advice and implementation support for the HEDP. Special attention will be paid to the strategic
development and monitoring activities of the MoHE, and the delivery of services at the
85
university level. The provision of technical support will combine day-to-day assistance from the
team members based in the Kabul Office, as well as other country offices through regular visits
to the country.
13. Overall Project management. The Task Team Leader (TTL), based in the region, will
coordinate the Bank team to ensure that the HEDP is implemented according to the Bank’s
requirements as specified in the Financing Agreement. The TTL will engage in regular dialogue
with the senior officials in Government to monitor implementation progress and help resolve
issues and address constraints as and when they arise. He will be assisted by team members,
especially the Bank staff based in Kabul.
14. Fiduciary requirements and inputs. The financial management and procurement
arrangements build on and utilize the capacity developed under the previous Project, SHEP. The
Bank financial management and procurement specialists are based in the Bank’s CO in Kabul
and will support Project implementation through regular and timely training and capacity
building of staff of the implementing agencies. Formal supervision of fiduciary processes and
procedures will be conducted semi-annually and implementation support will be provided as
required by the client.
15. Safeguards. The environmental specialist and the social development specialist on the
team who are based in the Bank’s CO will provide regular implementation support to the MoHE
officials in the implementation of the ESMF. The social development specialist will also work
closely with the MoHE/OMST and Universities to promote gender benefits of the operation in
higher education.
16. Analytical support. The Bank will assist the client by regularly undertaking higher
education research and impact evaluations on themes and topics that are considered high
priorities for future policy formulation and strategy development in the higher education sector.
These studies and evaluations will be undertaken collaboratively with the Government. The
HEDP makes provision to support research and policy analysis.
17. Donor cooperation and approach for support by the development partners (DPs). The
World Bank and the DPs will work in support of the overall higher education development
program of the MoHE. The Bank and DPs will make every effort to harmonize their work with
each other, although it is recognized that funding arrangements could differ among donors
depending on the size and content of their operations and their respective institutional mandates.
Among the donors, the DPs will meet regularly to ensure that their activities are harmonized with
the MoHE program and to discuss issues of mutual interest.
18. The main focus of implementation support is summarized below. Time Focus Annual Resource Estimate
SWs
Partner
Role
First 12
months
Team Leadership TTL 16
Technical Review/Support Senior Higher Education Specialist 8
M&E Specialist 6
86
Institutional Arrangements & Project
Supervision Coordination
Senior Education Specialist 16
Operations Officer/Analyst 16
FM Training, Implementation Support &
Supervision
FM Specialist 6
Procurement Management Procurement Specialist 6
Environment & Social Monitoring and
Reporting
Environment Specialist 2
Social Development Specialist 3
12-60
Months
(per year)
Team Leadership TTL 16
Technical Review/Support Senior Higher Education Specialist 8
M&E Specialist 2
Institutional Arrangements & Project
Supervision Coordination
Senior Education Specialist 16
Operations Officer/Analyst 16
FM Training, Implementation Support &
Supervision
FM Specialist 6
Procurement Management Procurement Specialist 4
Environment & Social Monitoring and
Reporting
Environment Specialist 2
Social Development Specialist 3
19. The staff skills mix required for implementation support is summarized below.
Skills Needed Number of Staff Weeks
Per Year Number of Trips Comments
Task Team Leader 16 SWs Two annually and field
trips as required
Based in the region
Senior Education
Specialist
16 SWs Field trips as required CO based
Senior Higher Education
specialist
8 SWs Two annually and field
trips as required
HQ based
Operations Officer /
analyst
16 SWs Field trips as required CO based
Financial Management
specialist
6 SWs Field trips as required CO based
M&E specialist 6 SWs first year, then 4
SWs per year
Two missions annually HQ based
Procurement specialist 4 SWs per year Field trips as required CO based
Environment specialist 2 SWs Field trips as required CO based
Social Development
Specialist
3 SWs Field trips as required CO based
87
Annex 5: Economic and Financial Analysis
Afghanistan: Higher Education Development Project
1. This annex summarizes the economic and financial analysis of the proposed Project. It is
organized as follows: (a) rationale for investing in higher education; (b) higher education and
labor market background; (c) poverty reduction and social benefits; (d) value added of the World
Bank support; (e) cost benefit analysis; and (f) financial analysis.
A. Rationale for Investing in Higher Education
2. The ultimate rationale for public investment in higher education in Afghanistan lies in the
contribution of the sector to economic development and poverty reduction. Market failures
existing in the sector and equity issues also justify public sector interventions in higher
education.
3. A large body of literature has shown that human capital accumulation is one of the most
important determinants of economic development and social well-being around the world. While
economic activities and production of goods and services have become increasingly knowledge
and skill intensive, the role of higher education in a competitive economy is also rising. The
share of formal employment in total employment has grown fivefold between 2004 and 2012,
and it is currently estimated to be about 20 percent. For Afghanistan’s economy to raise its
productivity and sustain its growth process, the country needs to significantly increase the
number of high skilled workers. The proposed Project aims to improve the quality and relevance
of university education, so that students will be equipped with competent skills that meet labor
market demand.
4. Investment in higher education yields a variety of social and private benefits. Higher
education has the highest rate of return of any other human capital investment and returns to
education are generally higher among university graduates. Investing in higher education also
generates positive externalities. The benefits of higher education are not restricted to the
individual level; they spill over to the entire society as well. Hence, there are macroeconomic
advantages in public spending on higher education. Compelling evidence indicates that human
capital accumulation increases productivity, and thereby accelerates growth and international
competitiveness. Investing in higher education is justified on the basis of potential contribution
to economic growth, increased earnings, poverty alleviation and social benefits such as
community and social services.
5. There are also equity arguments in favor of public sector interventions in higher
education. In the absence of public intervention, students from low income households have a
limited access to university education, leading to social exclusion and inefficiency in the higher
education sector. In addition, there are extremely high gender inequalities in higher education
enrollment in Afghanistan, which need to be addressed by national level measures. Furthermore,
insecurity and unrest in the country hamper private sector investment in higher education.
6. Investing in higher education also impacts on the quality of lower tiers of the education
sector. Universities play a critical role in producing a pool of qualified teachers in secondary
88
schools. High school teachers with university degrees are more likely to offer quality courses
and ultimately to improve learning outcomes among high school students. Therefore, accrued
benefits of higher education investments trickle down to the entire education sector. Investments
on higher education are a rational and valuable complement to investments on primary and
secondary education.
B. Higher Education and Labor Market Performance
7. The characteristics of the Afghan labor market are typical of low income, developing
countries: (i) relatively high labor force participation and employment rates –especially in urban
areas, (ii) low unemployment rates, “compensated” by high underemployment5, and (iii) large
gender disparities. As Figure 1 below shows, labor force participation at the national level is 68
percent, and it is much higher among males (87 percent) than among females--especially in
urban areas where less than 20 percent of women are economically active.
Figure 1: Labor Market Performance in Afghanistan, 2007/8
Source: NRVA Survey 2007/8
8. The unemployment rate is as low as seven percent at the national level –indicating that a
large proportion of individuals cannot afford being unemployed. However, underemployment is
chronic in Afghanistan, and represents 30 percent of total employment in 2007/8. It is more
persistent among females in rural areas, and especially young women. Similar to other low and
middle income countries around the world, youth unemployment is a serious economic and
social issue and has been a matter of growing concern among policy makers in Afghanistan. The
unemployment rate among youth between16-24 is higher than the national average, and it has
increased from 12 percent in 2007/8 to 19 percent in 2012 -- the third highest record in the region
after Maldives (24.5 percent) and Sri Lanka (20.5 percent) (see Figure 2).
5 A definition of underemployed is individuals who work less than 5 hours per day on average. Underemployment
rate is percentage of underemployment in total employment.
89
Figure 2: Youth Unemployment Rates, 2012
Source: ILO estimates
9. Female youth are particularly vulnerable in the Afghan labor market. The unemployment
rate among female youth was 15 percent in 2007/8, and it is more persistent in urban areas where
32 percent of economically active young females are unable to find a job. School to work
transition takes longer for female youth (3 years) than for young males (1.5 year). As presented
in Figure 3, male school leavers are more easily absorbed into the labor market than females. The
proportion of jobless young females increases at the age of 17 years until they reach 20, and it
slowly decreases as they enter into the labor market and are successfully employed. Extremely
low female labor force participation and a large proportion of vulnerable employment as well as
youth unemployment especially among female youths are the major labor market challenges in
Afghanistan.
Figure 3: School to Work Transition among Afghan Youths and Young Adult, 2007/8
Source: NRVA Survey 2007/8
90
Linking Education and Labor Market Outcomes
10. There is a strong correlation between education and labor market outcomes. It is
generally observed that the higher the level of education attainment is, the more likely it is to
participate in economic activity. Labor force participation is higher among individuals with
higher education than among those with secondary or primary education. Figure 4 shows labor
force participation and employment by workers’ education. The participation rate is lower in the
early stage of life, especially among skilled labor when they are still in their 20s --attending a
university or a vocational school, and it gradually increases and crosses over the semi-skilled
participation rate as they reach prime working age. This participation pattern by education level
is clearer amongst females. Labor force participation among females with secondary education is
only 25 percent. It declines as they get married and have family obligations in the early 20s, and
it remains very low until it drops when a majority of them stop working at the age of 50. The
participation among female skilled workers rapidly goes up as they leave school or graduate
from university, and it continues to be higher than participation among high school graduates.
The gap between participation rates of skilled and semi-skilled6 is distinctly pronounced among
females.
11. The employment rate among males is high, and very low among females with secondary
education: 84 percent of working age males are employed, and over 90 percent of prime working
age males are employed. Female employment rate is low and much more strongly correlated
with workers’ education level. At the national level, 45 percent of working age female
population is employed. While employment rate among females with primary or secondary level
of education is 20 percent, it jumps up to nearly 84 percent among vocational school graduates
and 67 percent among university graduates.
Figure 4: Labor Force Participation and Employment by Education Level, 2007/8
Source: NRVA Survey 2007/8
6 Skilled workers are individuals with a vocational school diploma, university degree or graduate degree; and semi-
skilled are workers with high school diploma.
91
12. In Afghanistan, workers’ education level is one of the key determinants of wage
employment. Individuals with higher education are more likely to attain formal employment, and
work in public administration, utilities7, education/health sectors, and other social services. The
majority of workers in Afghanistan face vulnerable employment8, working as unpaid family
workers (33 percent) and self-employed or small farmers (44 percent). The share of wage work
in the total employment in 2007/8 was 23 percent, and employers represented approximately one
percent. Nearly 80 percent of university graduates are formal workers, and 67 percent of them
work in public firms. The share of wage workers drops down to 42 percent among workers with
secondary education, 26 percent among those with primary education and 19 percent among
those with primary education and drop outs.
13. Figure 5 presents the trends of employment status by workers’ education attainment and
age. Almost 80 percent of workers are unpaid, self-employed or day laborers without social
security, health insurance and employment benefits. The share of self-employment slightly
increases among middle- age groups as workers are shifting from unpaid family business to own-
account small business.
14. As presented in Figure 5 B below, the share of unpaid work in the total employment is
constantly very large among all age groups of workers with a few years of primary education.
The proportion of unpaid workers with primary or secondary education declines as they
accumulate experiences in their mid to late 20s. While workers with primary education usually
make a transition to self-employment, those with high school diploma successfully find paid
jobs. Remarkable transitions occur after completing two year vocational school. As seen in
Figure 5-E, there is a sudden drop in the percentage of unpaid workers and an immediate jump of
the share of wage workers right after completing vocational school education. The proportion of
wage workers is very high, and the share of unpaid workers remains minimal across all age
groups of employed workers with a university degree. A small proportion of high skilled
graduates move from salary workers to self-employed independent professionals in their mid-
career.
15. The marginal probability of having wage employment was estimated using probity
regression models9. The regression results are consistent with the simple tabulation results above
mentioned. Controlling for age, gender, location and economic sector, workers with primary and
secondary education are respectively four percent and 17 percent more likely to get a wage
employment. Having completed two year vocational education or holding a university degree, an
individual is respectively 69 and 48 percent more likely to be a wage worker in a public or
private firm than an individual with no education (see Figure 6). Individuals working in the
utilities sector public administration, education and health sectors are 77 percent more likely to
be formal workers.
7 The utilities sector includes economic activities related to the production and distribution of water, gas, and
electricity. 8 Vulnerable employment includes unpaid family work, self-employment and day labor. 9 Note: reporting marginal effects; and reference categories are not completed primary education; living in rural
areas; being male; and working in agriculture sector.
92
Figure 5 A-F: Employment Trend by Workers’ Education Level, 2007/8
Source: NRVA Survey 2007/8
93
Figure 6: Predicted Probability of Wage Employment by Education Level, 2007/8
Source: NRVA Survey 2007/8
Education and Earnings
16. A recent study has shown that there is a positive and progressive association between the
education level of a household head and the level of household per capita consumption in both
urban and rural areas in Afghanistan. Households headed by an individual with formal education
are more likely to have a higher level of consumption compared with households with an
uneducated head, and households with a head attaining university education have the highest
level of economic welfare.10
17. The education level of individuals is highly correlated with earnings in urban and rural
areas. The correlation is more pronounced among female workers. Figure 7 presents kernel
density distributions of log hourly wage by gender with workers’ education level. The result of
the wage analysis using the 2007/8 NRVA survey shows that, like other low income countries,
the average wage among male workers is much higher than the female average. It also shows
that there is persistent wage segmentation by gender, which is significantly associated with
workers’ level of education attainment and ownership of firms. The gender wage gap is even
larger among individuals working in private firms in remote areas. The average wage rate among
female workers in the private sector was less than half of the male average at the national level,
and less than one third of the male average in rural areas in 2007/8. The gender gap is extremely
wide among workers with lower level of education, but less so among those with secondary level
education, and it almost disappears within the lower end of wage distribution among university
graduates. Amongst the latter, females earn even higher wage than males. This is strong evidence
that education can narrow the gender wage gap, and that higher education, in particular is
playing a prominent role toward promoting equitable economic growth in Afghanistan.
10 Afghanistan Higher Education Sector Report, 2013.
94
Figure 7: Kernel Density Distributions of Log Hourly Wage and Education Levels
Source: NRVA Survey 2007/8
18. Results of the regression analysis11 clearly indicate that education attainment is positively
correlated with earning in Afghanistan. On average, completing primary education yields 13 to15
percent higher earnings; attaining secondary education increases wages by 40 to 42 percent; and
graduating from university leads to 80 to 84 percent wage increase12. Returns to education are
substantially higher among females, especially university graduates. Among males, a university
degree is associated with 79 to 81 percent higher wages whilst it leads to over 100 percent wage
increase among females. These results are consistent with the ones estimated by Heckman Two
Stage Models controlling for selection bias.
C. Poverty Reduction and Social Benefits
Poverty Impact
19. Education is also closely related to poverty reduction. The education level of the
household head is usually negatively correlated with household poverty. For example, in
Afghanistan, while approximately 40 percent of households with uneducated head are suffering
11 Regressions use Mincerian earning functions. 12 Note: Controlling for age, gender, location and sectors of employment; the dependent variable is log hourly wage;
reference categories are rural, male, and agriculture sector.
95
from poverty, only 8.5 percent of households with university education are in poverty (Figure 8).
Households with more educated heads generally have more regular employment and higher
earnings. They also typically have lower fertility and smaller family sizes, which contributes to
lower poverty levels. Education is a key determinant of current poverty, inequality and
vulnerability. Investment in education, if appropriately targeted, has the potential to break the
intergenerational transmission of poverty and reduce inequality.
Figure 8: Poverty Incidence by Education Level of Household Head, 2007/8
Source: NRVA Survey 2007/8
Economic and Social Benefits
20. Public investment in higher education has the potential to generate social benefits. Kabul
University Engineering Faculty and Kabul Polytechnic University have started to provide
construction safety training courses in the community, and offer consulting service providing
technical supports to private and public firms under SHEP Kabul Medical University and medical
faculties in other universities have been offering basic primary care or check-ups for vulnerable
people in their local communities. While Afghanistan’s health system has very limited capacity
with unequal health service delivery, such community services offered by medical faculties
especially in rural areas where health outcome indicators are particularly low, is extremely
valuable. Kabul Education University is working with communities to develop community service
activities or study courses to improve literacy 13 for local people. With upgraded teaching and
learning quality which the proposed Project is expected to promote, universities and faculties will
be able to transfer knowledge and skills in their respective communities.
13 The Kabul Education University Service Learning program is a form of experimental education where students
work with their community to become familiar with local problems, and develop community service activities in
association with people in the community. This program provides students with opportunities to share their
knowledge and skills with local people.
96
D. Value Added of the Bank Support
21. The GoA has requested the Bank to play a leading role in supporting the MoHE’s long-
term higher education development program. The Bank is the only large development partner
which directly supports higher education in Afghanistan. The other main development partner,
USAID, assists the higher education sector through a consultancy arrangement with private firms
and higher education institutions.
22. The Bank has already made a significant contribution to the higher education sector in the
last eight years through the SHEP, and the proposed new operation seeks to build on the
knowledge and relationships developed over the course of implementation of the SHEP. The
Bank also brings value added by providing comparative global perspectives on recent higher
education developments and lessons learned from reforms implemented in other countries, and
by supporting the Government in adapting to the Afghan context. Finally, the Bank has extensive
technical expertise in higher education, and is able to provide concrete and relevant policy
advices and technical support for the development of the higher education sector in Afghanistan.
23. Public investment in higher education is aligned with the Bank Interim Strategy Note
(ISN) for Afghanistan that provides a sustained commitment and vision to the country’s
development through the period of transition and beyond. Interventions of the proposed Project
are fully consistent with building the capacity of institutions, which is the first strategic objective
of the ISN. They are also aligned with the second ISN objective of further strengthening
equitable delivery of education and health care services. Ultimately, they should contribute to the
third strategic objective of inclusive growth and jobs. Indeed, this third objective would not be
fully achieved without the availability of a high skilled and versatile labor force, and without
investments in post-secondary education.
24. Each individual component and sub-component of the proposed HEDP has the potential
to contribute to all the strategic objectives of the ISN, which aims to support the Government
program (Table 1). As an illustration, interventions 1.1 to 1.4 are direct inputs to the first
objective, while also contributing to the other objectives. Similarly, quality improvement of
teaching and learning, and staff capacity building, as well as the quality assurance component of
the Project, while strengthening the institutional capacity of the sector, will also improve the
delivery of education services that impact quality of skilled labor force which, in turn, will
ultimately contribute to promote economic growth. Finally, interventions to increase the
participation of females in university degree programs are an obvious vehicle to promote equity
in service delivery.
97
Table 1: ISN Objectives and HEDP Interventions
HEDP Components and sub-
components
ISN Objective 1
Building institutional
capacity
ISN Objective 2
Equitable service
delivery
ISN Objective 3
Inclusive growth
and jobs
1.1 Increasing enrollment in Priority
Degree Programs for Economic
Development
XX XXX XXX
1.2 Modernizing and Enhancing the
Quality of Teaching and Learning
XX XXX XXX
1.3 Improving the Qualifications
and Skills of Academic and
Technical Staff
XXX XXX XX
1.4 Strengthening Governance,
Quality Assurance and
Accreditation
XXX XX XX
1.5 Stimulating Development
Oriented Research
XX XX XXX
2. Program Operations and
Technical Support
XXX XX XX
Note: XXX= direct and strong contribution; XX = direct and moderate contribution; X = indirect contribution
E. Cost-Benefit Analysis
25. The objective of the HEDP is to enhance access to, and quality of higher education to
provide a foundation for the knowledge-based economic and social development of the country.
This section presents the results of a cost-benefit analysis of the HEDP, focusing on the
economic benefits. These benefits consist of higher earnings in the labor market due to the
greater quantity and better quality of human capital.
Methodology
26. Applying the Bank’s standard approach to economic evaluation, the Net Present Value
(NPV) of the Project, and the Internal Rate of Return (IRR) were estimated. Given the DLI
instrument being used for the Project, it is not possible to calculate the net benefits separately for
each sub-component and each activity. Instead, these benefits are estimated for the Project as a
whole, on an incremental basis over the Project period. The benefits of the Project are equal to
the difference between the incremental benefits and the incremental costs. Two scenarios are
envisioned: “with” and “without” interventions. The “without” scenario reflects how the quality
of higher education service delivery would have continued in the absence of the Project, i.e.
without provision of new equipment, libraries, science and computer labs, and trainings for
university staff and faculty members. The “with” scenario accounts for the direct investments
98
and incremental annual costs, and average salary increase among graduates due to increased
productivity. Basic assumptions are as follows: (i) the social discount rate = 10 percent, and (ii)
the employment rate among university first year graduates = 80 percent14. In the “with” scenario,
it is assumed that wages for target graduates will increase by five percent. Then, a sensitivity
analysis is conducted to measure the impact on the Project efficiency of (i) employment rates of
70 and 90 percent changes while all others factors remain constant, and (ii) wage increases of
three and seven percent, all other parameters remaining constant. The assumptions made for the
purpose of the sensitivity analysis are displayed in Table 2. A more detailed description of the
methodology is provided in the following paragraphs.
Table 2: Sensitivity analysis: Scenario hypothesis
Earning Increase Graduate
Employment Rate
Low case 3% 70%
Base case 5% 80%
High case 7% 90%
Cost Streams
27. The costs include the direct investment and incremental annual costs, and indirect costs
such as forgone earnings. A student’s choice to study at the university is associated with his/her
opportunity costs of attending the school. Each student studying at the university forgoes the
earnings of a person with high school education, which are estimated at US$2,845.15 The total
opportunity cost incurred by the activities is equal to the number of students enrolled multiplied
by their individual opportunity costs. It is assumed that students do not have a paid job while
they were at attending university. The total budget for all activities covered by HEDP is USD$50
million. The Project cost is presented in Table 3 below which covers both components of HEDP:
(a) Higher Education Development Program; and (b) Program Operations and Technical
Support.
Table 3: HEDP Project Costs, Bank Financial Year 2016-2021
(In US$ million) 2016 2017 2018 2019 2020 2021
Annual 8.0 11.0 11.0 11.0 8.0 1.0
Cumulative 8.0 19.0 30.0 41.0 49.0 50.0
Benefit Streams
28. The activities under HEDP are expected to yield benefits by increasing the number of
graduates who are more productive in the labor market. With no tracer surveys that could have
provided the labor status of the graduates in Afghanistan, incremental benefits of the program
were estimated by using the 2007/08 NRVA Survey and data from MoHE.
14 It is assumed that 80 percent of the first year graduates will be employed and full employment after the second
year. 15 The average annual salary for those with high school education was taken from the NRVA 2007/2008, adjusted for inflation in
2013.
99
29. Most of the target universities from the previous higher education project are located in
the provinces where the unemployment rate is relatively higher than the national average, and
they will be funded by the proposed Project as well. The HEDP is intended to produce positive
externalities in these provinces by reducing local unemployment and underemployment, and by
increasing provincial public spending that ultimately contributes to poverty alleviation in these
provinces. The inclusion of these universities in the program along with other public universities
is very important not only from an equity perspective but also in terms of the impact on the local
economy through research activities or community services (e.g., medical treatments for the
local population). Universities have been increasing the number of faculty members and
university staff during the SHEP that certainly has been making a positive contribution to the
local employment in the provinces where target universities are located. The proposed Project is
expected to continue and scale up this contribution.
30. Beneficiaries of the Project are students, university graduates, faculty members and staff
in public universities. The first component of the proposed Project would finance quality
improvement of teaching and learning; capacity enhancement of academic and managerial staff;
modernizing quality assurance; governance reform of universities; and research and enrollment
in priority degree programs.
31. Benefits come from the increased number of graduates who become more productive in
the labor market. The benefit streams used in this analysis are: (a) increased earnings resulting
from larger number of students completing university education; and (b) enhanced labor skills
from the higher quality of university education. Activities in the first component are expected to
increase graduates’ productivity over their life time. The increased productivity of graduates is
captured by their increased earnings after graduation relative to what they would have earned
without additional education. It is also assumed that graduates’ upgraded skills are retained
during their entire working time, and that, on average, a graduate remains in the labor force for
40 years. The quality premium (enhanced labor skills) is applied to all students who enroll
during the Project period. The quality premium is measured by the additional 30 percent of
average earnings of high school graduates times the number of students enrolled in each year.
Table 4: A List of Key Parameters
Description Pausible range Value used Note
Active working life time (in years) 40
Employment rate among graduates (%) 70-90 80 NRVA 2007/8 and MoHE
Out of pocket university education (per student of public university in US$) 80-100 90 MoHE
Average monthly salary among high school graduates (in US$) 108.3 NRVA 2007/8
Average monthly salary among university graduates (in US$) 183 NRVA 2007/9
GDP deflator IMF World Economic Outlook 2014
Real effective exchange rate IMF Afghanistan Country Report
100
Result of Economic Analysis
32. Table 5 below shows the results of the economic analysis. The base case scenario
(assuming 80 percent employment rate among university graduates) yields an internal rate of
return (IRR) of 16 percent and a net present value (NPV) of US$ 165 million, clearly pointing to
a worthwhile investment. The sensitivity analysis confirms that the Project would yield highest
returns in the case of an employment rate of 90 percent, and the lowest one in case of an
employment rate of 70 percent. However, the difference between the two extreme scenarios is
minimal, and even under the least favorable hypotheses, the Project remains a highly beneficial
investment.
Table 5: Summary results of the economic analysis
Scenarios
1. Earning increased
by 3% due to quality
and relevance
improvement
2. Earning increased
by 5% due to quality
and relevance
improvement
3. Earning increased
by 7% due to quality
and relevance
improvement
NPV IRR NPV IRR NPV IRR
90% of employment rate 190 16 195 17 200 18
80% employment rate
(base case) 160 15 165 16 170 17
70% employment rate 120 14 130 15 135 16 Note: NPV in millions US$.
Risk Analysis
33. In order to assess how the risk of the expected NPV of the Project can affect its outcome,
an extreme sensitivity analysis was conducted, using Monte Carlo simulations. The random
variables such as enrollment rates, employment rates after graduation, and the income
differential between graduates and non-graduates were selected. For the purpose of this analysis
it is assumed that these random variables are all uncertain. While costs are also important
variables in the Project, and subject to change, it is assumed that they are certain. The Project’s
NPV is most sensitive to changes in the incremental productivity generated by the Project, as
measured by the income received by the students after graduation. This amount depends on three
factors: enrollment rates, income differential between university graduates and non-graduates,
and employment rate of graduates during the first year after their graduation. If after graduation
(a) the economic situation is such that unemployment among university graduates is rampant, or
(b) the differential in productivity (and hence income) between high school and university
graduates is small, then the Project’s net benefits may turn negative. Finally, if for some reason
enrollment rates do not materialize as expected (the quality of the program is unsatisfactory, for
example), the benefits of the Project would not be forthcoming. Some of the risk factors such as
corruption and fraud, management capacities, and security identified during Project preparation
are not included in the parameters since they are not amenable to quantification and
measurement in monetary terms.
101
34. The Monte Carlo simulations executed 1,000 trials including these three parameters. The
estimated Project NPV of US$ 330 million falls within the valid rage between US$ 251 million
and US$ 395 million with the relatively small standard error. The risk of each assumption was
further analyzed using triangular distributions. The extreme sensitivity analysis concluded that
all assumptions are viable and sound, and the estimted NPV is most likely to remain positive at
95 percent confidence level.
F. Financial Analysis
35. This analysis is conducted in two phases. First, it frames the Project within a wider,
sectoral perspective, and offers a broadly based view of expenditures on higher education, while
comparing the Afghan situation with that of a cluster of countries. Then, it analyses the probable
budgetary impact of the Project.
Education Expenditure
36. Public education spending in Afghanistan has remained minimal in the last few years.
Total education spending as percentage of GDP has dropped from three percent in 2009/10 to 2.6
percent in 2011/12 which is lower than the average among low income countries (four percent).
Education spending as a percentage of Government expenditure was approximately 12.2 percent
in 2012, that is below the average (16 percent) observed among countries with similar income
level. Countries in South Asia generally are underspending on education (with the exception of
Nepal). The regional average of public spending on education as a percentage of Government
expenditure is about ten percent, and Afghanistan spends a little more than this average.
37. As total Government education expenditure has increased from US$ 472 million to US$
542 million between 2009/10 and 2011/12, the proportion of higher education in total
Government education expenditure expanded from 12 percent to 15.6 percent with an increase of
recurrent expenditure by 28 percent and capital expenditure by 120 percent. The increase of both
recurrent and capital budgets has allowed universities to restore basic operational capacity, and
therefore, contributed to the growth of enrollments in higher education. The total number of
students at 12 public universities supported by the previous higher education Project dramatically
increased from 12,300 in 2005 to 28,300 in 2012. As a result, expenditures per student have
decreased from US$191 in 2010/11 to US$127 in 2011/12.
38. Higher education spending is positively correlated with the level of economic
development around the world. For instance, in 2012, Singapore, Malaysia and India spent 38-37
percent and Sri Lanka allocated 17.8 percent of total education spending to higher education, and
conflict experienced or affected middle income countries in MENA such as Tunisia and Syria
spent 28 percent and 24 percent respectively (Figure 10)16. As mentioned earlier, although higher
education expenditure as percentage of total education spending in Afghanistan was 15.6 percent
in 2012, it has not yet reached the average of countries with similar income level. This
comparison clearly contributes to conclude that the country is under-investing in its higher
education sector. Since enhancing education outcomes and accelerating human capital
16 WDI central database updated in 2014 using latest available 2012 in Tunisia and 2009 in Syria.
102
accumulation is the national priority, Afghanistan ought to spend more on higher education in
order to achieve inclusive growth.
Figure 10: Public Spending on Education in 2012 by Income Level
Source: MoHE and WDI 2014
Fiscal Impact and Sustainability
39. Fiscal sustainability of the Project depends largely on the country’s economic
performance and the Government’s willingness to continue supporting higher education
institutions financed by HEDP. Over the past decade, Afghanistan has made enormous progress
in reconstruction and development, more than doubling its income per capita level. Economic
performance since the fall of the Taliban regime has been strong, and macroeconomic stability
has been maintained. During 2002/03–2006/07, real GDP growth averaged 15 percent per year17,
reflecting a recovery in agriculture, donor-funded postwar reconstruction, and initial yet
promising growth of a range of private sector activities. GDP growth slowdowns to a little over
than three percent in 2014 due to the impact of the international troop drawdown, political
uncertainty coupled with deterioration of security; however, it is expected to pick up thereafter,
as activity and investment rebound. Continued reform efforts with the Bank and other donors’
support will ensure that fiscal and external gaps are covered. With stable international prices and
sound monetary policy, inflation should remain in single digits. In the longer term, an improved
business environment and better economic governance are expected to further facilitate private
sector-led growth and the development of the natural resource sector. Accordingly, growth could
accelerate as mining productions come on-stream, and it might converge thereafter to about 4-5
percent (Figure 11). Revenue collection increased as a share of GDP from 4.7 percent in 2003/04
to 7.5 percent in 2006/07, before declining to 7.0 percent in 2007/08, and increased up to ten
percent in 2011/12,18 a good omen for the future.
17 IMF Poverty Reduction Strategy Paper, 2008 18 IMF Country Report 2014.
103
40. However, the most recent data available suggest that the Government is still in a delicate
situation, with a significant budget shortfall for current FY and the need for foreign assistance to
bridge the financing gap. These data also lead to forecast a slower resumption of growth than
initially projected, and will oblige the Government to establish clear priorities in future
expenditures. Given the under spending on higher education, and the critical contribution of this
sector to fuel productivity and future growth, it is important that higher education be included in
these priorities.
Figure 11: Macroeconomic Projections Afghanistan in the next 5 years
Source: IMF estimates.
41. Despite all the progress, Afghanistan remains one of the poorest countries in the world
and continues to be vulnerable. In the context of currently political transition, and continuous
insurgency, there could be short-run repercussions on the national education budget as GDP
growth slowdowns. Accordingly, there is a possibility that the higher education budget could
also shrink over the next few years. A contraction of the higher education budget might
adversely affect the sustainability of the Project in the short to medium term. Sustainability also
depends on Government priorities as well as the availability of counterpart funds. Indeed, the
Government has been making continuous efforts to develop and expand the tertiary education
program in the last decade, and this proposed Project is the logical follow up of the previous
higher education Project. Furthermore, there are indications that universities are developing their
ability to finance operating expenditures of SHEP investments beyond the Project life. For
instance, in several cases, some universities in Kabul province, have secured service contracts
with Government organizations or/and private firms, and have established partnerships with
other universities in US, Europe and Japan as a result of provisions of new equipment financed
under SHEP that would provide them with recurrent additional revenues.
42. Table 6 below presents annual HEDP allocations and the projected higher education
budget between 2015 and 2020 over the course of the Project. The result of analysis indicates
that the allocations would have a limited fiscal impact on the overall higher education sector
budget during its implementation, and would not be a burden for the Government to maintain
expenditures when the operation closes.
104
Table 6: Expected Fiscal Impact and Sustainability of the Project
Calendar year 2015 2016 2017 2018 2019 2020
Predicted GDP (USD million) 22,600 24,400 26,400 28,500 30,000 31,920
Higher education expenditure (% of GDP) 0.4 0.4 0.4 0.4 0.4 0.4
Higher education expenditure (% of
Government spending)
2.0 2.0 2.0 2.0 2.0 2.0
HEDP Project cost (USD million) 1.0 9.0 11.0 11.0 10.5 7.5
HEDP as share of total higher education
expenditure (%) 1.1 9.2 10.4 9.6 8.8 5.6
Source: MoHE and Staff estimates
43. Calculations of the Project sustainability are based on an analysis of the recurrent costs of
the Project, plus the annual maintenance costs, training and workshops, scholarships, travel,
salaries and benefits. The share of higher education in Government spending in the last five years
has remained at around 1.9 percent, and it is assumed to be about two percent throughout the
course of the Project. The result of the analysis is summarized in Table 6. The cost of the Project
is expected to be gradually absorbed into the national budget; thus, it is anticipated that there will
be no significant effect on fiscal sustainability.