Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 10625-TA

STAFF APPRAISAL REPORT

TANZANIA

FINANCIAL AND LEGAL MANAGEMENT UPGRADING (FILMUP)PROJECT

JUNE 1, 1992

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Southern Africa DepartmentIndustry and Energy Operations Division

This document has a restricted distribution and may be used by recipients only in the performance oftheir offici'al duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CUJRRENCY EQUIVALENT

Currency Unit = Tanzania Shillings (T.Sh)

US$1 = T.Sh 245 (at time )f appraisal)US$1 = T.Sh 291 (April 1992)

FISCAL YEARJuly 1 to June 30

MEASURESMetric System

ACRONYMS

Acc.G - Accountant-GeneralAGD Administrator-General's DivisionCAG - Controller and Auditor-GeneralCID - Civil and International DivisionCPA - Certified Public AccountantCPE - Continuing Professional EducationDPP - Director of Public ProsecutionsDSA - Dar es Salaam School of AccountancyFMCC - Financial Management Component CoordinatorIAA - Institute of Accountancy, ArushaIDLI - International Development Law InstituteIDM - Institute of Development Management, MzumbeIFM - Institute for Finance ManagementILC - International Legal CenterLD - Legislative DivisionLLM - Master of LawsLSCC - Legal Sector Component CoordinatorNBAA - National Board of Accountants and AuditorsNGOs - Non-Governmental OrganizationsNIC - National Investment CorporationNORAD - Norwegian Agency for Development CooperationOCAG - Office of the Controller and Auditor-GeneralODA - Overseas Development AdministrationRIPA - Royal Institute of Public AdministrationSIDA - Swedish International Development AuthorityTAA - Tanzania Association of AccountantsTAC - Tanzania Audit CorporationUSAID - United States Agency for International Development

FOR OFFICIAL USE ONLY

UNITED REPUBLIC OF TANZANIAFINANCIAL AND LEGAL MANAGEMENT UPGRADING (FILMUP) PROJECT

STAFF APPRAISAL REPORT

Table of ContentsPages

CREDIT AND PROJECT SUMMARY ............................... I iii

I. BACKGROUND

A. Introduction ................... 1..................B. The Accountancy and Auditing Prefessions .......................... 1C. Public Sector Financial Management & Institutions ...... .............. 3

The Accountant-General ........... ......................... 3The Controller and Auditor-General ............................ 3The Office of the Controller and Auditor-General ..... ............ 3The Tanzania Audit Corporation ........ ...................... 3Accountancy Education ........... .......................... 4The Institute of Finance Management .......................... 4The Institute of Accountancy, Arusha ........................... 4

D. The Legal System .............................................. 5Tlhe Judiciary .............................................. SAttorney-General's Office ........... ......................... 5Law Reform Commission ........... ......................... 6Department of Registration, Commercial Law

and Industrial Licensing ........ ....................... 7Training for the Legal Profession .............................. 7Commercial Laws and Related Legislation ...... ................. 7

H. SECTOR ISSUES .................................................. 8

A. Accounting and Auditing Issues .......... ......................... 8NBAA role regarding pre- and post - qualification Training .... ...... 8NBAA's issuing of Tanzanian Accounting & Auditing

Standards ............. ............................. 9NBAA's lack of capacity for enforcement ........................ 9Increasing the Number of Qualified Accountants ..... ............. 9The Shortage of accountants in the Public Service ..... ............ 9A special Accountancy Qualification for the Civil Service ..... ....... 9

B. Legal Sector Issues ................ .......................... .9

This report is based on the findings of an appraisal mission which visited Tanzania in March 1992.The mission consisted of Messrs. Uche Mbanefo (Mission Leader and Financial Analyst), andBernard Abeille (Sr. Architect/Procurement Specialist), Ms. Elizabeth Adu (Senior Counsel), andMs. Sonia Johnsen (Consultant). The lead adviser for the operation was John Graves and thepeer reviewer for the legal component was Mr. Hans Gruss. Ms. Dotilda Sidibe typed thereports. Mr. David Cook is the managing Division Chief, and Mr. Stephen Denning is theDepartment Director for the operation.

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

The proper limits of Bank involvement ........ ................. 10Lack of Knowledge of Modem Commercial Law ...... ........... 10The Overloading and Inefficiency of the Judiciary ...... ........... 10Lack of Relevant, Up-to-date Legal Materi.' ..... ..... .......... 10

C. Sector Development Strategies .... ............................ 10Accounting and Auditing .............................. 10The Legal Sector ............................. 11Past Role of the Bank and Lessons of Experience ................ 12

D. Rationale -`r Project Components ................................ 12II. THCE PROJECT ................................................. 13

A. Rationale and Objectives ....................................... 13Objectives . ................................................ 13

B. Project Components ............. ............................. 14Financial Management Upgrading ................................. 14

National Board of Accountants and Auditors .................... 14Office of the Controller and Auditor-General ................... 16Institute of Accountancy, Arusha ............................. 17Institute for Finance Management ............................ 18

Upgrading of the Legal Sector ................................... 19Attorney-General's Office ................................... 19Judiciary ................................................ 20Law Reform Commission ................................... 21Registrar of Companies .................................... 21

Studies ................................................. 21Legal Sector Study ............ ............................ 21Cost Recovery Study ....................................... 22TAC Study . ............................................. 22

Project Coordination .............. ............................. 22C. Cost Estimates . .............................................. 22D. Financing . ................................................. 24E. Procurement . ............................................... 24F. Disbursement . ............................................... 28G. Accounting and Audit ............. ............................ 29

rV. PROJECT IMPLEMENTATION ...................................... 30A. Organization and Management .................................. 30B. Monitoring, Evaluation and Reporting ............................. 31C. Mid-term Review . ............................................. 31

V. BENEFITS, RISKS AND SUSTAINABILITY .... ........ .. ................. . 32A. Benefits ................................................. 32B. Impact on the Economic Reform Program and the Environment .... ..... 32

Environmental Aspects ..................................... 33C. Sustainability .................. ............................. 33D. Risks and Uncertainties ...................................... 33

VI ASSURANCES AND RECOMMENDATIONS .................... ....... 33

LIST OF TEXT TABLES

Table 1: Project Components SummaryTable 2: Prcject Costs SummaryTable 3: Project Financing PlanTable 4: Summary of Proposed Procurement Arrangements

LIST OF ANNEXES

Annex 1: National Board of Accountants and Auditors (NBAA)Annex 2: O)ffice of Controller and Auditor-General (OCAG)Annex 3: Institute of Accountancy, Arusha (IAA)Annex 4: Institute for Finance Management (IFM)Annex 5: Direct Assistance to the Legal frameworkAnnex 6: Terms of Reference for the Legal Sector StudyAnnex 7: Terms of Reference for the Cost Recovery StudyAnnex 8: Terms of Reference for the TAC StudyAnnex 9: Project Cost Tables:

Page 1: Project Cost SummaryPage 2: Project Cost Summary Year by YearPage 3: NBAA CostsPage 4: OCAG CostsPage 5: IAA CostsPage 6: IFM CostsPage 7: Attomey General's Office CostsPage 8: Judiciary CostsPage 9: Law Reform Commission CostsPage 10: Studies CostsPage 11: Financial Component CoordinationPage 12: Legal Component CoordinationPage 13: Calculation of Contingencies - Foreign CostsPage 14: Calculation of Contingencies - Local CostsPage 15: Registrar of Companies

Annex 10: Estimated Schedule for DisbursementsAnnex 11: Project Implementation ScheduleAnnex 12: Supervision PlanAnnex 13: Selected Documents in the Project FileAnnex 14: Planning For Project Launch Workshop

TAIZANIAFINANCIAL AND LEGAL MANAGEMENT UPGRADING (lILMIP) PROJECT

CRED1T AND PROJECT SUMMARY

Borrower. Government of the United Republic of Tanzania

Beneficiaries: National Board of Accountants and Auditors (NBAA); Offi.e ofthe Controller and Au,'itor-General (OCAG); Institute ofAccountancy, Arusha (LAA); Institute of Finance management(IFM); Attorney-General's Office; the Judiciary; the Law ReformCommission; and the Registrar of Companies.

Amount: SDR14.6 million (USDollars 20 million equivalent)

Terms: Standard IDA, with 40 years maturity

Objectives: The objective of the project is to improve public sector accounting andauditing on the one hand, and the legal and regulatory framework and theadministration of justice on the other by:

(a) strengthening key institutions involved in both activities throughimprovements in their human and material resources; and

(b) undertaking studies designed to prepare a detailed strategy for thedevelopment of the legal sector, improve cost recovery, andincrease competition and efficiency in the audit of parastatalorganizations.

Project Description The project would be implemented over a five yearperiod, and would, for the most part, finance a five-year slice of the long-term development plans of beneficiary institutions.

Fmancial management. (Specifically accounting and auditing) would beimproved by: reinforcing the professional regulatory institution, NBAA,the Office of the Controller and Auditor-General (OCAG), the IAA whichtrains students for the highest level CPA examinations, and IFM whichprepares them for intermediate level accountancy examination. In addition,the project would finance a study designed to recommend modalities forremoving TAC's monopoly of parastatal audits, and would also finance aproject financial component co-ordinator to be located in NBAA.

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Dge.!awA and regulatory framework would be improved by:

- development of a long-term strategy and implementation programfor the legal sector;

- strengthening the Attorney-General's Department, the Judiciary,the Registrar of Companies and the Law Reform Commission,through the provision of staff training, management informationsyste.ns, basic office equipment and publications for law libraries;

- (i) revision and publication of the Laws of Tanzania, and (ii) reviewof laws relevant to private sector development, the parastatalreform program and privatization; and

- a project legal component co-ordinator to be located in the officeof the Attorney-General.

The Cost-recovery study would explore ways of recovering more of theoperating costs of all the beneficiary institutions (see above) involved inboth the financial and the legal components of the project.

Benefits: The project is expected to result in both quantitative andqualitative improvements in the services provided by beneficiaryinstitutions. The pass rates achieved by IAA and IFM students in nationalaccountancy examinations are expected to increase. The quality ofaccounting practice would improve through the issue and enforcement ofaccounting and auditing standards. Many of the country's out-of-date lawswould be revised and made more accessible. Through its impact onaccountability and the legal framework, the project would provide thepractical under pinnings for the policy changes being introduced throughthe structural adjustment program.

Risl The only foreseen risk lies in possible inability of the beneficiaryagencies to absorb and put to good use the resources and improvementsbeing introduced through the project. However, built-in measures, such as,raining, technical assistance, highly de-centralized yet well-coordinatedproject management, and gradual phasing of implementation are alldesigned to minimize that risk.

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L ESTIMATED COSIS AND FNANCING

Project Cost SummaryUSS Mfllion

Local Forljo Total Of Total

Improvement of Financial Management 2.7 9.6 12.3 64

Improvement of the Legal Framework 1.4 3.9 5.3 28

Studies - 0.4 0.4 2

Project Coordination 0.2 0.2 0.4 2

Incremental Operating Cost 0.8 - 0.8 4

Total Base Cost 5.1 14.1 19.2 100

Physical Contingencies 0.2 0.6 0.8 4

Price Contingencies 1.4 1.1 2.5 13

Total Project Costs 6.7 15.8 22.5 117

Flnancing Plan USS Milion

Local Foreign Total

IDA 4.3 15.7 20.0Government of Tanzania 2.3 0.0 2.3SIDA 0.1 0.1 0.2

TOTAL 6.7 15.8 22.5

2. ESTMA-TED IDA DISBURSEMENT SCHEDULE(USS Million)

1DA Fscal Year 1993 1994 1995 1996 1997 1998

Annual 0.8 4.6 7.0 6.4 0.7 0.4

Cumulative 0.8 5.4 12.4 18.9 19.6 20.0

Economic Rate of Return: Not Applicable

1. BACKGROUND

A. Introduction

1.01 This report describes the first attempt by the World Bank to provide direct financialassistance to two key areas critical to the efficiency of the public service, to the rule of law, and inparticular, to the success of Tanzania's current economic reform program. These two areas are publicsector financial management (specifically accounting and auditing) on the one hand, and the legal andregulatory framework on the otht!;.

1.02 Public sector financial accoun.ability has been a subject of continuing concern for manyyears, not only with the Government, which has created numerous institutions, and issued Presidentialproclamations on the subject, but also with bilateral donors and private organizations, which havecarried out studies, and created or supported several training and other institutions in an effort toimprove it.

1.03 The legal f.amework, dlthough it has not received as much public or doncr attention aspublic sector accountability, is nevertheless, equipped with the usual institttions for the legalframework and administration of justice found in most former British colonies and protectorates.Like the financial institutions, the legal institutions were designed to serve an economic system basedon extensive public ownership of the means of production. Now that Tanzania is moving away fromthat system, there is a need to adapt the institutions to service a libera!ized economy. A successfuleconomic reform program and the development of an active private sector depend on goodaccounting and auditing systems, as well as a system of laws, regulations and administration of justicewhich is transparent, easilv accessible, consistently applied but at the same time dynamic and sensitiveto the changing needs of the society. The Economic Recovery program has been underway foralmost six years and has dramatically changed the business orientation of the country. As theprogram is proceeding it has become increasingly clear that there are serious weaknesses that needto be addressed in the financial, legal and judicial systems. In order to increase investor confidence,it is essential that these reforms be undertaken.

1.04 Government, Bank, and donor interests in public financial accountability are similar andnon-controversial: good accounting and auditing systems are essential for good economicmanagement. With regard to the legal framework, however, the Bank approaches issues of legalreform from the stand-point of economic efficiency, but many bilateral donors, now keenly interestedin the legal framework, approach it from the point of view of human rights and good governance.The two interests converge in practice, not only because good "economic" laws governing, forexample, rights to personal property, serve as a logical starting point for good governance, but alsobecause the same legal institutions (e.g. the Ministry of Justice) administer the legal framework forbotb economic and political rights. Nevertheless, as will be discussed further in Chapter II, thisdifference of approach has to be taken into account in deciding specific areas of intervention by theBank and bilateral donors.

B. The Accountancy and Auditing Professions

1.05 The accountancy and auditing professions in Tanzania have developed along a patternwhich, although it is not unique, is certainly unusual in some important respects. As in most otherAfrican countries, T&_ania's first accountants and auditors were trained abroad, mostly in the UnitedKingdom, Canada, the United States, and other English-speaking countries. In most other countries

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these foreign-trained professionals formed a national Institute of Accountants - a member-owned self-regulatory body - which later sought and icceived official 'ancticn, generally by being incorporatedthrough a special Act of Parliament.

1.06 In Tanzania the typical professional evolution descrined above was pre-empted by theAccountants and Auditors (Registration) Act of 1972, which created ti;e National Board ofAccountants and Auditors (NBAA) as a statutory body, with which all accountants and auditorspractising in Tanzania have to be registered. Its main functions are to conduct examinations, approveand register accountants and auditors, and generally regulate the activities and conduct of accountantsand auditors. Due to inadequate resources, it is far behind in its program of introducing accoundingand auditing standards in Tanzania. In addition, it has no means of enforcing the few internationalstandards it has adopted. The NBAA offers an accounting technician qualification as well as aprofessional Certified Public Accountant (CPA) qualification. In addition to its student educationprogram, the NBAA organizes short seminars for practicing accountants. Despite its manyachievements, the NBAA is constrained in the activities it can undertake by both staff capacity andfinance. Its offices are also scattered in three different buildings and locatio.ns a source ofconsiderable administrative cost and inefficiency which this project would address.

1.07 About a decade after NBAA was established, Tanzania's accountants and auditors,frustrated by the problems of having their interests represented by a parastatal body over which theyhad no control, formed the Tanzania Association of Accountants (TAA) to represent the interestsof the profession. However, since NBAA, through its enabling legislation, had been endowed withthe power and functions nL mally belonging to a member-owned institute, TAA has had to contentitself with the role of a more informal organization providing the framework for social contacts,lectures, and other events.

1.08 Despite the situation described in the above paragraph, ar.1 a certain amount ofduplication (e.g. in the area of continued professional education for practicing accountants andauditors), there is no serious conflict between NBAA and TAA. This is largely because everymember of TAA is also a registered member of NBAA, and practically every Board member ofNBAA is also a member of TAA

1.09 Currently, Government budgetary allocations pay for ab out one-half of NBAA's recurrentexpenditure. The other half is recovered from members. Government also provides TAA with afixed annual subvention of TSh2 million. With Tanzanian salaries as low as they are, the fact thatmost Certified Public Accountants (CPAs) pay annual subscriptions to both NBAA and TAA meansthat neither organization can raise enough money from members to (ully cover its operating costs.

1.10 For all the reasons discussed above, the roles of the 14BAA and TAA need to be moreclearly defined in the future. Eventually, a situation more akin to that in most other countries couldbe envisaged, in which TAA would take over all the self-regulatory and professional control andpromotional activities normally carried out by Institutes of CPAs in other countries, and be the solerecipient of members' subscriptions, while NBAA would limit itself to the issue and enforcement ofaccounting standards, and would be financed entirely out of the Government budget. However, thepace of this evolution cannot be forced, because it will depend on TAA's demonstrated and declaredreadiness to take on more responsibilities.

1.11 Pass rates in NBAA examination are around 20%, and the throughput of qualified peopleis very slow, leaving considerable gaps in the market place. A 1989 study estimated that Tanzania

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was short of about 2,000 fully-qualified and about 5600 semi-qualified accountants, as well as ovcr15,000 accounting technicians.

r. Public Sector Fmancial Management and Institutions

1.12 The Accountant-General (AG) of Tanzania ad his staff are responsible for themaintenance of all Government accounts. The staff are posted to all the Ministries, where theyprepare the accounts of all Government units, which they later consolidate at the Treasury, wherethe Accountant-General's office is located. The Acc-G has had difficulty in attracting and keepingstaff, partly as a result of the overall shortage of accountants noted above, and partly because of pooisalary levels (despite re-classification of accountancy as a rare skill . >-w years ago). The Acc-G'soffice has been receiving assistance from several bilateral donors.

1.13 The Controller and Auditor-General (CAG) is the single most important watch-Jog ofpublic finances in Tanzania. He is required by Section 143 of the Constitution of Tanzania amongother things:

(a) to grant to the Treasury credits on the Exchequer Account and satisfy himselfthat all monies appropriated by Act of Parliament and disbursed have beenapplied to the purpose for which they were appropriated and that theexpenditure conforms to the authority which governs it; and

(b) at least once in every year to audit and report upon the public accounts of theUnited Republic, the accounts of all officers and authorities of the Governmentof the United Republic, the accounts of all the courts of the United Republic andthe accounts of the Clerk of the National Assembly.

1.14 The Office of the Controller and Auditor-General (OCAG) has twenty branch offices -one in each Region. It has on its staff some 100 auditors with different levels of accountancy

qualifications. It shares the Acc-G's problems of recruiting and retaining qualified staff, and for thesame reasons. For several years, the OCAG has received the assistance of the British OverseasDwvelopment Administration (ODA), and it is currently negotiating a second phase of that assistancewl ich is expected to include assistance with the management of audits, training in the audit ofco nputerized audit systems, and the training of trainers. In addition to inadequate staff resources,the OCAG also lacks office equipment, and enough transportation to cover the entire territo,y ofTar. zania.

1.15 The Tanzaia Audit Corporation (TAC) is a pa-'statal institution which, until recently,enjoyed a virtual monopoly of auditing the accounts of I, 400 or so parastatal institutions inTanzania. Following the Arusha Declaration in February 1967, the Treasury tried to get theController and Auditor-General to take on the audit of all the parastatals, in exercise of his statutoryduties (para. 1.13 above). The CAG, however, pointed out that his staff of civil service auditors didnot possess the requisite commercial audit experience to audit the accounts of revenue-earningparastatal entities. This prompted the Goverment to set up TAC under the Tanzania AuditCorporation Act of February 1, 1968. Although TAC's chairman submits his annual report to thePresident of Tanzania, TAC's accounts are submitted to, and audited by, the Controller and Auditor-General, who stil has the statutory power to appoint any auditor to audit any parastatal.

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1.16 With some 40 CPAs, TAC is by far the largest single auditing firm in Tanzania. Despitethe fact that it is Government-owned, and has been criticized in certain quarters, a review of TAC'saudit reports reveals that it does a tairly thorough job, and is remarkably independent. It has heavilyqualified or issued disclaimers in its audit reports on the accounts of such sensitive Governmentinstitutions as the Bank of Tanzania. The staff is generally well-trained, and TAC has receivedconsiderable foreign assistance, including training and technical personnel, particularly from theSwedish International Development Authority (SIDA).

1.17 Despite its competence and independence, the monopoly powers gr? ited to TAC havebeen criticized as likely to result in over-pricing, inefficiency, and possible stunting of thedevelopment of private firms which might otherwise have audited some of the parastatals.Consequently, the Government has removed this monopoly, first in the 1991 Banking and FinancialInstitutions Act, and, more completely in the Public Corporations Act approved by Parliament in early1992.

1.18 Accountancy Education has received considerable attention and resources fromGovernment, bilateral donors, and both local and foreign non-governmental organizations (NGOs).Nevertheless, the shortage of qualified accountants, and the low pass rates in the CPA examinations,suggest that these efforts have yet to yield the desired result.

1.19 Tanzania has about 16 public and private accountancy t'3ining institutes, of which thefollowing offer CPA mourses or their equivalents: the Institute of Finance Management (IFM) andthe Dar es Salaam School of Accountancy (DSA), both located in Dar es Salaam, the Institute ofDevelopment Management (IDM) in Mzumbe, and the Institute of Accountancy in Arusha (LAA).Accountancy is also taught at the University of Dar-es-Salaam which offers a Bachelor of Commercewith a major in accounting, resulting in exemption from part of the CPA examinations. The IDMhas been the recipient of considerable support from NORAD, and the DSA received assistance underthe IDA Education VI Project (Cr. 0861). FILMUP would provide assistance to the IFM and the

1.20 The Institute of Fmanoe Management (FM) was established in 1972 to look after theeducational needs of the banking and insurance sector and was laier -xpanded to cover other financerelated disciplines. The IEM is a self-financing parastatal, although it has lately been incurringdeficits. During the 1991-1992 academic year the Institute had 788 full-time and over 600 part-timestudents. The IFM offers three year advanced diploma courses in accountancy, banking, financialmanagement, insurance, social security administration and tax management, and a one year postgraduate diploma in accountancy, financial management and tax management, and a number of shortcourses. Over 50% of the full-time students and all of the part-time students are taking accountancycourses, and the number of students interested in accountancy is increasing every year. The staffemployed by the IFM are very conmitted, but they are few in number, and many are not sufficientlyqualified to be able to effectively teach these advanced courses. The IFM has received some limitedassistance in the form of fellowships from the British Council, Canada, the Netherlands and Belgium,but this has not been sufficient to meet its needs. The facilities at the JFM are extremely poor; theInstitute has no computers and the library is inadequately stocked, there are few accountancy books,mostly out-of-date editions.

1.21 'he Institute of Acoauntancy. Arusha (af) which opened in 1987, is a purpose-builtresidential college preparing students for the Parts III and IV (i.e., final stages) of the CPAexaminations. Examination pass rates are better than the national average, with 46% of the students

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passing the dinal examinations at the May 1991 examination sitting. In addit;on, the Institute runsshort courses in accounting and related subjects, and revision courses for the CPA examination. TheInstitute is able to accommodate 180 students, and has plans for an additional hostel which willincrease its capacity to 300. The current hostel capacity greatly restricts the numbers of students thatcan attend the courses. The Institute has recently built a new lecture theater, but it does not havesufficient funds to furnish it. Lack of funds has also resulted in an inadequately-equipped kitchenand dining room and a poorly resourced library. Staffing is a major problem, and for many subjectsthe LAA has difficulty in attracting and retaining lecturers. As with the IFM, the IAA has receivedlittle donor support.

D. The Legal System

1.22 The legal system in Tanzania is based on the common law, with customary and islamiclaw influences, especially in the areas of personal and property laws. The body of laws thus includeslegislation from the colonial era, legislation enacted since independence, as well as various customaryand islamic rules. In Zanzibar the islamic influences are stronger, with the existence of Khadis' courtsto try cases according to islamic law. Following the Arusha Declaration in 1967, and the bias towardsthe public sector as the provider of gcids and services, there has been very little development of theprivate sector and the laws and procedures that would accompany such development. With the biasagainst the private sector, commercial and corporate laws have been neglected.

1.23 The Judicily. Tanzania has a long and honorable record of the independence of thejudiciary and respect of the rule of law. The judicial structure on the mainland consists of a systemof 1023 primary courts, 86 district courts, 20 regional courts, the High Court that sits in Dar esSalaam and 11 zonal centers and the Court of Appeal. In Zanzibar there is a separate court system,with a structure similar to that described above. There is, however, a dearth of trained legalmanpower at all levels. Magistrates at the primary court level are non-lawyers who are graduates ofa nine-month Certificate in Law course run by the judiciary at the Institute of DevelopmentManagement (IDM), Mzumbe. There are plans to upgrade this to a two-year Diploma course. Mostmagistrates at the district and regional courts have progressed through the system from the primarycourts and thus are not lawyers by training. Judges of the High Court and the Court of Appeal areall holders of a law degree. The administration of justice is slow and inefficient. Even though thereare a number of magistrates at the different levels, they are not adequately trained, do not have thenecessary support systems, and operate under very poor and difficult conditions. There is a seriouslack of court accommodation. There are very few courts which sit in court buildings designed for thepurpose. For the most part, courts use rented premises which do not have adequate facilities forconducting cases, maintaining proper registries, etc. In addition, the paralegal and other support staffare not adequately trained. The court system has to rely on whatever staff is available, without accessto the necessary training. To function properly, the judiciary requires a professional and well trainedcadre to run the support services, assisted by the necessary equipment.

1.24 Attorney General's Offlce: The Attorney-General is the legal advisor to the Government.The office is divided into several dirisions, namely, the Civil and International Division (CII)), theLegislative Division (LD), the Directorate of Public Prosecution (DPP) and the Administrator-General's Division (AGD). The CID advises the government on all civil and international matters,including the defence of suits brought against the government, representing the government in allnegotiations with local as well as international interests as well as other matters on which their adviceis sought. CID is understaffed and under-trained, partly because of the incentive system in the civilservice, but also because of the fact that the department has for some time now been unable to send

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its staff abroad for further training and exposure. LD comprises the office of the Chief ParliamentaryDraftsman who is responsible for the drafting of all legislation in Tanzania. In addition, the officeis entrusted with the task of publishing regular revised Laws of Tanzania as well as annualsupplements. Again, the office is Hi-equipped to do this, and there are not enough trained legislativedraftsmen to keep up with the regular workload. There has not been a revision of the Laws ofTanzania since 1965. This makes it impossible for practitioners and judges alike to know at any pointin time what the law on any give subject is. It makes relying on precedent difficult, especially as theTanzania Law Reports have not been printed since 1982. AGD is responsible for the registrationof births, marriages and deaths. It is also responsible for administering estates of persons who dieintestate. DPP is in charge of all prosecutions at the senior courts namely the High Court andregional courts. Again most the counsel are fresh out of law school, with very little experience, andnormally do not stay long in the department.

1.25 Law Reform Commission: The Law Reform Commission (LRC), which was establishedpursuant to the Law Reform Commission of Tanzania Act, No. 3 of 1980, is charged with thefunction of taking and keeping under review all the laws of Tanzania with a view to their systematicdevelopment and reform. The functions are set out in more detail in Section 4(2) of the Act, namelyto:

(a) review any law or branch of the law and propose measures necessary for:

(i) bringing the law or branch of the law into accord with currentcircumstances of Tanzania;

(ii) eliminating anomalies or other defects in the law, repealing obsoleteor unnecessary laws and reducing the number of separate enactments;and

(iii) the proper codification and simplification of that law or branch of law;

(b) consider and advise on proposals for the adoption of new or more effectivemethods for the administration of the law and the dispensation of justice;

(c) from time to time, prepare and submit to the Attorney-General programs for theexamination of different branches of law with a view to reforming those laws,including recommendations as to the agency, whether the commission or anotherbody, by which any such examination should be carried out;

(d) at the request of the Attomey-General, prepare comprehensive programs for theconsolidation and revision of laws, and undertake the preparation of any draftbills pursuant to an such program approved by the Attorney-General; and

(e) at the instance of the Attomey-General provide advice and assistance to anyministry or department or any public authority or institution by undertaking theexamination of any particular branch of the law and making recommendations forreform so as to bring it into accord with current circumstances.

1.26 The LRC thus has a major role to play in the legal reform process. In this regard its role,particularly at this time, is crucial, in order to put in motion a review of laws which impact, inter alia,

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on the private sector and its activities. The LRC is however currently ill-equipped to undertake thistask. It has neither the staff, equipment nor resources. Since its establishment LRC has carried outor is in the process of carrying out reviews in several areas, e.g. Private legal practice, delays in thedisposal of civil suits, personal laws etc. As with the other agencies the needs of the LRC are in theareas of training, access to reference and research materials, equipment, and the establishment of anappropriate data storage and retrieval system.

1.27 Registrar of Companies. This is the law department of the Ministry of Industries andTrade. The Department is responsible for the following:

(a) Commercial and Industrial Laws, registration of companies, business names,industrial licenses and hire purchases;

.q Intellectual Property Laws, registration of patents, trade marks, industrial designs,etc.; and

(c) Administration of Copyright Laws.The department is also responsible for giving legal advice to government, parastatals and the privatesector on commercial and intellectual property matters. The office is operating under very difficultconditions with very little office space, poor filing space, poorly trained staff, and poor equipment.The department has about four hundred thousand files, but has no computers. The informationretrieval system is manual and inefficient. There is no library. This office should be efficiently runwith an information management system which makes it easy for companies to obtain information thatthey need in a timely fashion.

1.28 Training for the Legal Profession: Tanzania has a long record of training of lawyers.The Law Faculty at the University of Dar es Salaam (UDS) is the only institution in Tanzaniaoffering formal legal education at the degree level. It has been training lawyers for decades. Anumber of East African lawyers trained in the 1960s and 1970s were trained there. The Law Facultyoffers LLB and LLM courses. The UrS generally and the Law Faculty in particular were in theforefront of the activism following the Arusha Declaration, consequently the content of the lawtaught was biased. For example, company law was not taught as a subject for a long time, but as partof a course on public enterprise law. In addition, the training unit in the judiciary and the Instituteof Development Management (IDM), Mzumbe, run a nine month certificate of law course forPrimary Court Magistrates. Further training for the legal profession is undertaken outside thecountry on an ad hoc basis, as and when there is money available, usually from donors.

1.29 Commercial Laws and Related Legislation: For some of the reasons which have beenmentioned above, the existing laws dealing with commercial matters have been neglected. Apart fromvery few changes, the Companies Ordinance, bankruptcy and other commercial laws date from thecolonial era. The Companies Ordinance is based on the 1938 English companies legislation and isthus totally outdated. This and other legislation have to be revised and consolidated where necessary.It is also necessary to ensure the legislation meets the needs of modem commercial transactions.There is the recognition of the need to update the laws governing the entry, governance and exit ofcompanies. In addition, there are various other laws dealing with tax, foreign exchange, licensing,bankruptcy, land tenure etc., which need to be reviewed by the Government. Some steps havealready been taken in this regard. A Banking and Financial Institutions Act was enacted in 1991, anda new Public Corporations Act and Foreign Exchange Act have already been enacted. What is now

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needed is a thorough review of existing commercial and related legislation starting with theCompanies Ordinance and associated regulations, which would be undertaken under the Project.

IL SECTOR ISSUES

A Accounting and Auditing Issues

2.01 In addition to the problems discussed in Chapter 1, the main issues in accounting andauditing have to do with:

(a) the proper role of the National Board of Accountants and Auditors (NBAA),particularly with regard to its training of candidates for its own examinations, andits relation with the Tanzania Association of Accountants (TAA);

(b) how best to increase the number of qualified accountants in the country;

(c) the extent to which staff shortages in the public sector are more the result ofpoor renumeration than of the inadequate numbers of accountants in theeconomy as a whole;

(d) the need for NBAA to rapidly issue accounting and auditing standardsconforming to international standards;

(e) NBAA's capacity to enforce the standards it issues;

(f) the development of continuing professional education (CPE) for practicingaccountants and auditors;

(g) the desirability of introducing a special accountancy syllabus and qualification forpublic sector accountants; and

(h) other measures for strengthening NBAA and improving its effectiveness.

2.02 Most, but not all, of the above issues relate to the NBAA, its role, capacity andeffectiveness. Given the pivotal role of that institution in the sector, those issues are discussed firstbelow, followed by discussion of the other issues.

2.03 NBAA's role reigarding prequalification and postqualification training has beendiscussed in a number of reports. Many observers see a possible conflict of interests in NBAA'straining of students for its own pre-qualification examinations. NBAA is therefore withdrawingcompletely from this activity. IAA has become an independent state-owned institution instead of oneowned and directed by NBAA There are numerous training institutions in the country and NBAAis encouraging the creation of more, particularly privately-owned, and in areas not adequately servedby state-owned schools. NBAA continues to provide continuing professional education along sidethe TAA, but this is an activity from which NBAA should probably withdraw as soon as the TAAdemonstrates its capacity to provide it adequately.

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2.04 NBAA's issuing of Tanzanian accounting and auditing standards has lagged well behindthe publication of international standards which NBAA is trying to adopt after adapting them toTanzanian laws and conditions. This is largely a result of inadequate staff and financial resources -one of the main problems this project is designed to address. Even for those standards it has issued,NBAA lacks the capacity for enforcement again largely because it does not have enough staff withthe requisite qualifications and experience. Other inadequacies hindering NBAA's effectivenessinclude its difficulties in organizing and moderating examinations and maintaining a members' register,and the fact that it operates from three different offices in Dar-es-Salaam, and needs to move intoone location. All these issues are being addressed through a broad-based sector development strategyin which several donors are now participating with the Government, and of which this project formsan integral part (see Section C below).

2.05 Increasine the number of qualified accountants in the country has been a primaryconcem. NBAA has so far successfully resisted suggestions that it should lower its examinationstandards in order to improve the pass rates in its examinations (currently about 20% nationwide).There is now a consensus that the right way to increase the number of accountants is to improvetraining quality, not to reduce examination requirements. NBAA (in common with most Tanzanians)is concemed to ensure that a Tanzanian-qualified Certified Public Accountant (CPA) should be seento be in every way as well-qualified professionally as a CPA from any other country.

2.06 The shortage of accountants in the public sector is seen by many as resulting, not justfrom the national shortage, but also from the poor salaries paid in the civil service. As of March 1992the most highly-paid accountants in the civil service were eaming less than TSh25,000 (aboutUS$100) a month. This is after a decision by the Govemment a few years ago to pay a salarypremiumn to accountants by classifying their skill (along with medicine and engineering, for example)as rare. Although free housing sometimes adds ten times the cash salary to the total remuneration,the cash part of the package is still too low to attract and keep CPAs in the civil service. A policybased on eliminating free housing but paying a much higher cash salary would save money for theGovernment while providing the employee with a much larger discretionary income to spend oneither private housing or something else. This issue needs to be tackled in the context of the overallcivil service reform, as it goes beyond the accounting, auditing and legal professions. It is, in fact,being addressed by the Public Sector Adjustment Credit currently rinder preparation.

2.07 The question of a special accountancy qualification for the civil service is related to thatdiscussed in the preceding paragraph. Tanzania's CPA training (as with such training in mostcountries world wide) although commendable efforts have been made to broaden it, is still heavilybiased in favor of commercial or private sector accounting. Part of the 'iew strategy on which NBAAis currently embarking, therefore, involves the introduction of a new qualification: the AdvancedDiploma in Government Accounting and Auditing. NBAA has approved a detailed plan forintroducing this qualification, and has applied to the ODA for financing to implement it. Apart fromthe hope of making this qualification more relevant to the needs of the civil service, it is also hopedthat it will result in Government being able to retain more qualified accountants in its service.

B. Legal Sector Issues

2.08 The major issues include:

(a) the proper limits of Bank involvement;

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(b) the legal profession's lack of knowledge of commercial and corporate matters;

(c) the inadequate capacity of the judiciary to cope with its workload; and

(d) lack of relevant up-to-date legal material in Tanzania.

2.09 'he proper limits of Bank involvement constitutes an issue. The Bank's mandate has todo primarily with economic development, rather than with human rights, the police force, or prisonservices. It will be necessary, therefore, in designing assistance to this sector, to clearly define wherethe Bank's mandate ends, but that of its bilateral partners continues. Already there is clear evidencethat many donors are keenly interested in pursuing human rights aspects of the rule of law andrelated matters in which the Bank would not normally be involved. This crucial issue would be dealtwith in the proposed study.

2.10 Lack of knowledge of modem commercial law and practioe poses some danger for theeconomic liberalization program now underway in Tanzania. There is a shortage of lawyersconversant with commercial and corporate matters in the various government agencies (including thejudiciary), as well as in private practice. This problem would be directly addressed through thisproject.

2.11 The overloading and inefficiency of the judiciarg constitute a much bigger problem whichcan be addressed directly by this project only in part, but would be examined in depth during thesector study. Skill levels are generally poor. Lower level personnel (primary court magistrates andcourt registry staff) in particular are inadequately trained. The project would begin to address thesetraining needs.

2.12 There is a lack of relevant. uv-to-date legal material to enable lawyers and judges toundertake their tasks. The Tanzanian Law Reports have not been printed since 1982, and there hasnot been a revision of the Laws of Tanzania (as required by statute) since 1965. This should be doneat least every ten years. In addition, the law libraries are totally inadequate. This issue would alsobe directly addressed by the project.

C. Sector Development Strateces

2.13 Accounting and Auditing. During the last ten years numerous inquiries have beenconducted into the state of the accountancy and auditing professions and many recommnrldations putforward for their development. In 1991, under the auspices of the IDA-financeL FinancialAdjustment Credit, ODA financed the latest and one of the most comprehensive of these studies,which came up with proposals for a strategy for the developmeLt of the sector. Most of theserecommendations have been accepted by the NBAA and the donor community, and many are alreadybeing implemented.

2.14 Following is a summary of the main elements of this strategy:

- NBAA is to withdraw from training students for its own examinations;- NBAA should take on the new function of accounting and audit review -

monitoring the performance of practising accountants and auditors to ensure thatit is up to acceptable standards, and disseminating best practises;

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- NBAA should intensify its program of issuing accounting and auditing standards,and take on the new responsibility of enforcing those standards;

- NBAA should introduce continuing professional education (CPE) to keeppractising accountants up to date with the latest best practice;

- NBAA should be strengthened with training, technical assistance, and its ownoffice building, to enable it to carry out the responsibilities described above;

- TAC's monopoly of the audits of parastatal companies should be removed;

- A new syllabus and qualification should be introduced to deal with the accountingneeds of the civil service;

- The roles of NBAA and TAA should be more clearly defined with NBAAfocussing more on the setting and enforcement of standards, and TAA onmember-related services and professional promotion; and

* The Accountant-General, the Controller and Auditor-General, and TAC shouldall be assisted with staff training and technical assistance.

2.15 Actions to implement the above strategy have been taken, not only by the Govermnentof Tanzania and NBAA, but also by the donor community. Most of NBAA's actions in pursuit ofthe strategy have been described in Section A above. Proposed donor activities fitting into thestrategy include the ODA-financed training and technical assistance project to the Accountant-General's office, the OCAG, and the Institute of Development Management (IDM), Mzumbe. Theyalso include continuing SIDA assistance to TAC, and NORAD assistance to IDM.

2.16 This project would represent the single most comprehensive attempt to date to implementthe new sector strategy. It would include not only provision of material assistance to key sectorinstitutions targeted by the strategy, but also policy actions, such as NBAA Schedules for introducingaccountinc and auditing standards, action plans for removing TAC's monopoly, a cost recovery study,and othei measures detailed in the next chapter.

2.17 The Legal Sector. Government, the Bank, and bilateral donors have agreed on a two-part strategy for assisting the development of the legal sector in Tanzania, namely:

- a limited direct assistance to alleviate some of the more pressing needs identifiedin Section B above under 'Issues"; and

- a major sector study with Government, Bank, and bilateral donors' participationdesigned to diagnose the sector problems, and prepare an action plan (includingindicative project briefs) for its development.

2.18 There is at present no clearly articulated Government strategy for the development ofthe sector. There is, nevertheless, a recognition that there are major problem areas within the legalprofession, the judiciary, and the support services. Some of these needs are so obvious and non-controversial that they can be immediately addressed. However, it is important that a strategy for thesector be developed, which takes into account the various needs and expectations of the sector.

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Under the Project, assistance would be provided to the Government to enable it to develop such astrategy and a program for the implementation of the strategy.

2.19 There is intense interest, on the part of donors active in Tanzania, in supporting activitiesin this area, in pursuance of the good governance theme. The Nordic Governments (particularlyDANIDA and SIDA), ODA, the Canadian Government, and USAID have shown interest. However,this is an area where there is very little expertise, and all bilateral donors are looking to the Bank toplay a coordinating role. The donors are interested in participating in the development of thestrategy for the sector, and have indicated that they have the necessary resources to support thevarious studies that will go into developing the strategy.

2.20 Past Role of the Bank and Lessons of Experience The Bank has never financed aproject to assist either accounting and auditing or the legal sector. However, the Bank has had directexperience of the inadequacies of accounting and auditing in the public sector. This has taken theform of poor compliance with the auditing covenant on many IDA-financed projects in Tanzania.It was largely this experience that alerted the Bank to the existence of a problem in that area. It ishoped that the successful implementation of this project would improve public sector accounting andauditing in the medium to long term, while more intensive supervision and focus on this specific issueshould improve the situation in the short term.

D. Rationale for Project Components

2.21 The main factors responsible for low accounting and auditing standards in Tanzania havebeen identified in many studies, as well as in Chapter I and this chapter, and may be summarized as:

(a) inadequate dissemination and enforcement of acceptable accounting and auditingstandards; and

(b) inadequate numbers of qualified accountants and auditors in the country ingeneral, and in the public service particular.

2.22 The problem in 2.21 (a) (inadequate dissemination and enforcement of accounting andauditing standards) above has been funher diagnosed as due primarily to (i) inadequate staff skiDls,inexperience, inadequate and fragmented office accommodations and poor equipment at the NBAA--the sole institution in Tanzania responsible for setting and upholding accounting and auditingstandards; (ii) the inadequate supply of accountancy text-books; and (iii) the inadequate human andmaterial resources available to key public sector institutions, such as the office of the Controller andAuditor-General, which is responsible for auditing all civil service accounts.

2.23 The inadequate supply of accountants to the country as a whole is largely a result of poorpass rates in professional accountancy examinations due to problems in key accountancy traininginstitutions, particularly the institute of accountancy, Arusha (IAA) and the Institute for FinanceManagement (IFM) which are currently receiving no foreign assistance. These problems include:

(i) inadequate skills of trainers, particularly in such subjects as advanced financialmanagement, quantitative analysis and computer science;

(ii) difficulty of attracting and retaining staff due to poor salaries and inadequate staffhousing;

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(iii) poor library facilities everywhere;

(iv) the incomplete development of the LAA's administrative and training facilities;and

(v) poor office and training equipment, e.g., computers.

2.24 In the legal sector the most pressing problems have also been identified in Chapter I andthis chapter as:

(i) the absence of a long term strategy for the development of the sector;

(ii) the inadequacy of skills throughout the sector, especially in such areas ascommercial and company law;

(iii) the absence of up-to-date laws, due to the long neglect of law revision and long-delayed publication for the laws of Tanzania;

(iv) inadequate library facilities for judges and legal practitioners who need access toup-to-date legal decisions and precedents;

(v) poor office equipment and informatioan systems; and

(vi) inadequate post-qualification training facilities.

IIL THE PROJECT

A. Rationale and Objectives

3.01 Implementation of the Economic and Social Reform Program in Tanzania is placingheavy demands on public sector accounting, auditing, financial management, legal management, andadministration of justice in Tanzania which are outstripping the laudable efforts the Government hasbeen making to meet them. The reasons for this state of affairs are manifold, but underlying theinadequate level of services is a number of problems cutting across several other public sector servicesand activities, including, for example, an inadequate supply of trained staff, poor equipment, andinadequate performance incentives. This capacity building project is designed to address theseproblems.

3.02 The issues in public sector accounting and auditing have been reasonably well-analyzedin many studies over the years, and a strategy for developing the sector has recently evolved. In thelegal sector, however, the issues require considerable further analysis and a detailed strategy for fulldevelopment still has to be prepared. For these reasons, a cautions two-pronged approach is adoptedof providing limited and obviously-needed assistance, while financing a study designed to remove, orat least reduce, the uncertainties described above.

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Objectives

3.03 The objectives of the project are to improve accounting and auditing standards on theone hand, and the legal regulatory framework and the administration of justice on the other.

B. Project Components

3.04 Table 1 shows the five p3roject components, the beneficiary institutions, and the type ofassistance each institution would receive under the project. Unless where specified otherwise, allcosts (both in Table 1 and the rest of this Section) are base cost (i.e., without provision for physicalor price contingencies). Project incremental costs (Component V in Table 1) represent estimatedmaintenance costs of buildings, additional rental for NBAA staff housing, vehicle operating costs andother incremental expenses which project institutions would incur, as a result of project investments.Government would be expected to finance these as well as any part of local procurement notfinanced 100% by IDA, as explained in Section E below.

Fiancial Manai-ement Unpirading USS12 million)

3.05 The problems highlighted in paragraphs 2.21 to 2.23, would be addressed through (a)better dissemination and enforcement of acceptable accounting and auditing s.andards by the NationalBoard of Accountants and Auditors (NBAA) and the Office of the Controller and Auditor-General(OCAG); and (b) increasing the national output of CPAs by strengthening the two most relevanttraining institutions, IAA and IFM.

3.06 The National board of Accountants and Auditors (NBAA) would be assisted under theproject through training, technical assistance, the preparation of study manuals, office equipment,vehicles, and office accommodation. In-service traiing would be provided to upgrade technical andprofessional skills of the NBAA staff. Staff need to be trained in modern accounting and auditingtechniques to enable NBAA to complete its program of issuing accounting and auditing standards,and to expand its activities to include computer training for students and members, and to introducepractice review. The subcomponent would provide for NBAA staff to take masters degree coursesin accounting, business, and public administration as well as short term courses relevant to their work.Details of the training program are in Annex 1 and the Project File.

3.07 Technical assistance for NBAA would be provided to help to introduce a practice re"iewsystem whereby NBAA would review whether an auditor is complying with relevant standards. Thissubcomponent would provide the NBAA with an expert for four weeks in the first year, and twoweeks each in the second and third years of the project to assist in drawing up guidelines for practicereview, and monitoring the work of the NBAA reviewers, and an expert for similar periods to assistthe NBAA in reviewing and updating its examination syllabus. In addition, the project would financeshort-term consultancy to teach information technology and the latest techniques in accounting,auditing and costing in NBAA's program of continuing professional education (CPE) aimed atpracticing accountants and auditors. NBAA brought to negotiations a schedule of accounting andauditing standards it plans to issue, with target issue dates, and assurances were obtained atnegotiations that NBAA would implement that schedule.

3.08 In addition, the project would finance NBAA's preparation of studv manuals. Pass ratesin the NBAA examinations are very poor. Textbooks in Tanzania are in very scarce supply, and thereare no books covering Tanzanian accounting, auditing and taxation. To improve examination pass

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rates and increase the number of accountants and auditors in the country, the NBAA has recruitedauthors to write 30 study manuals over the next two years. These manuals would be sold to studentsat prices designed to recover fuli production costs. The project would finance initial production andprinting expenses. Thereafter manual production is expected to be self-financing.

TABLE IPROJECT COMPONENTS SUtMMAU

Compnuter& Office&t ohnbal Study Ofc Reidential

h rn Training Astnoe Manuab j Equlpment Printing Vehice, Accommod. Total

1. Flnianl MsnagemmntNBAA 487 108 168 - 174 - 146 2661 3e24OCAG 163 - - - 74 - 111 - 338IAA 69 1260 - 614 79 - 78 3466 6085IFM 668 720 - 166 626 - 160 - 2320

StJB-TOTAL 1997 2088 168 680 963 0 486 6008 12387

11. LSee10

Attorney-General's Offie-Clvll&lntematinalDivision 179 200 - 176 200 - - - 764- Chief Parimntary Draftsman 284 180 - - - 1800 - - 2264- Administrator-General's Offloe 100 - - - - 360 - - 460

Judciary 801 _ _ 176 200 370 30 - 1376Law Feform Coimlmalon 180 60 - - 60 - - - 260Regletr rofCompane 111i - - 84 _ _ _ 196

SUB-TOTAL 1436 430 0 360 634 2620 30 6299

Ill. STUDIESLegal etor Strategy - - - - - - - - 260oCt Roo-eyStudy -SI1

TAC Study - - - - - - - - so

SUB-TOTAL _90

IV. PROJWECt OOOROINATION:-Financel - - - - - - - _ 18e

-Lagal - - - - - - -~~~ ~ - 188

- Prjeot Launch Workshop _ _ _ _ _ _ 7SUB-TOTAL - - - - - - - - 3603

V. ICNtEMENTAL OPERATION COSTS - - - - - - - - 793TOTAL BASE COST 3432 2618 168 1030 1487 2620 615 6006 19212

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3.09 The project would also finance computers and office equipment for the NBAA whoseequipment is heavily over-utilized and does not meet the demands of running a growing professionalbody. The NBAA currently has a manual system for members and students records, and anaccounting system which is time consuming to use and does not enable the NBAA to easily analyzedata. A computerized database for members and students and a computerized accounting systemwould help alleviate these problems. There is an urgent need to train accountants in computer skills,so that they can effectively use and help design the computer systems currently being installed inTanzania. This includes not just familiarization with basic computer programs, but also training inthe use of accounting software. The NBAA can play a very useful role in enabling members andworking students, who do not have access to college facilities, to gain hands-on computer experience.This subcomponent would provide the NBAA with computers, peripheral equipment and software,as well as other office equipment detailed in Annex 1 and the Project files.

3.10 The project also provides for five vehicles to enable NBAA to meet its transportationneeds, particularly for conducting its professional oversight role and for arranging and conductingexaminations simultaneously in different parts of the country.

3.11 NBAA offices are currently scattered in three different locations in Dar-es-Salaam: NICHouse, which is its headquarters and main office; Mavuno House which houses its Education,Research and Training, and Examinations Division; and Mhasibu House where three temporaryclassrooms have been built for training and to house the printing unit. This attempt to operate outof three locations is not only an administrative nightmare, but also a great waste of managerial timeand fuel, especially given telephone and other communication problems, as NBAA managerscommute between these three sites in an effort to co-ordinate NBAA activities. To make mattersworse, none of the three offices is really adequate for the purpose for which it is intended.

3.12 NBAA's efforts to rent consolidated offices in Dar have proved futile, not only becauseof the shortage of office accommodation in the city, but also because NBAA is not in a financialposition to compete with businesses for commercial space. A recent ODA-financed study hastherefore recommended that NBAA be provided with a grant to enable it to construct its own officebuilding.

3.13 The NBAA holds the title to the Mhasibu House plot of land. The plot covering 1.614acres, is large enough to accommodate all NBAA's office requirements. The project would financethe construction of the NBAA headquarters in Dar Es Salaam which would include: (i) civil worksand external works (estimated at US$4.4 million equivalent) comprising about 900 m2 for office space,and 1,900 m2 for training, library, and other facilities; (ii) related equipment and furniture (estimatedat US$1.1 million); and (iii) technical fees (estimated at US$0.4 millions equivalent) fordesign/supervision of civil works and procurement of goods. Construction is expected to becompleted in Project Year 2. Details of space areas in square meters, room occupancy and costs aregiven in Annex 1. To promote close collaboration and eventual integration of NBAA and TAA (theCPA member organization), assurances were obtained at negotiations that NBAA would providethree offices for TAA in the new building. Government also brought to negotiations a statement ofits future policy for the development of the accountancy profession, with particular reference to thefuture relationship between NBAA and TAA

3.14 The project would also finance for the Office of the Controller and Auditor-General(OCAG) (Annex 2) training, computers and office equipment and vehicles. The OCAG needs to

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train its staff in three new areas crucial for the propoi exercise of its audits of all civil serviceaccounts, namely, contract audit, value for money audit, and computer accounting and auditing. Theproject would provide financing for these courses. The project would also finance the local trainigof already-identified OCAG staff for the CPA examination. In addition, the project would financecomputers, typewriters, and vehicles foi OCAG's twenty offices located in all the twenty provincesof Tanzania.

3.15 As explained in paragraph 3.06 above, cfforts to increase the national output of CPAswould center on strengthening IAA and IFM, two key institutions responsible for training studentsfor CPA examinations. The IAA, located on the outskirts of Arusha, is a residential campus for full-time students, producing better examination results than the national average. IFM is in Dar-es-Salaam, and has a large number of part-time anoi day students.

3.16 For the Institute of Accountancy. Arusha (IAA) (Annex 3) the project would financestaff training, technical assistance, library support, computers and office equipment, vehicles, andoffice and residential accommodation. Training of trainers is necessary because, although theexamination pass rates at the IAA are over twicc the national average, there is still considerable roomfor improvement. To improve student performance, the lecturing staff at the LAA need to be betterinformed in modern accounting and auditing techniques. The subcomponent would provide for a fewmasters degree courses, and several short update courses in financial accounting, cost andmanagement accounting. Technical assistance would consist mostly of two substitute lecturers, eachfor 2 years, to temporarily replace staff who would be going away on training, plus short-termconsultancy to provide seminars for LAA staff, particularly in computer literacy. Details of trainingcourses and consultancy arrangements are in Annex 3 and the Project Files.

3.17 The poor condition of most libraries in the count±y has been noted earlier in this report.In both MAA and IFM - two important training institutions for the CPA examinations - there are veryfew text books, and what exists is mostly out-of-date. Accordingly, the project would finance librazvsupport for IAA in the form of already-identified and necessary text-books, periodicals and libraryequipment.

3.18 The equipment and vehicles that IAA has are insufficient to meet the needs of a growingteaching establishment. Although it plans to teach computer applications, it is now completely devoidof computers. Therefore, in addition to some basic library equipment, this subcomponent wouldprovide LAA with a limited number of computers, photocopiers, duplicating machines, overheadprojectors, electric typewriters, power bank, audio-visual equipment, and a public address system. TheIAA would cover the costs of installation. In addition, given that the LAA is located a considerabledistance from a town which has little public transportation, and most of the administrative personnellive in town, the project would finance one car and two mini-buses to transport staff and students.

3.19 All the buildings on LkA's campus have been fmianced by the Government of Tanzania -one of the many practical examples of the importance the Government attaches to the developmentof competent accountancy skills at the highest level. The buildings already completed and currentlyin use include classrooms, two students' hostels, 18 staff houses, a kitchen/cafeteria attached to oneof the residential blocks, a theater, and part of an administrative block housing all the offices as wvellas the library.

3.20 Construction of the administrative block was not completed due to lack of funds. LAAclearly will not have enough offices or library space unless the administrative block is completed.

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Moreover, the half-completed structure, not properly roofed, is deteriorating fast. So the alreadyconsidcrable investment in it would bc lost il the building was left uncompleted. Also the cafeteriais so poorly-designed as to constitute both a health and a fire hazard. In addition, there is notenough housing for staff or for the expected future student expansion. During project preparation,both the administrative block and the proposed new cafeteria were re-designed to more modest (andless costly) standards than the original buildings. The project proposes to finance these specific worksdesigned to complete the development of the institute to a more modest design than was originallyintended.

3.21 Accordingly, the project would finance the extension and remodeling of the LAA whichwould include: (i) civil works and external works (estimated at US$3.4 million) comprising anadministration block with a library for students and teachers, a board room and offices (2,000 m2 ),boarding facilities (1,100 m2), a cafeteria (910 m2), and 12 additional staff houses (1,740 m2); (ii)related equipment and furniture (estimated at US$0.6 million equivalent); and (iii) technical fees fordesign/supervision of civil works and procurement of goods (estimated at US$0.4 million equivalent).Construction is expected to be completed in Project Year 2, with the exception of civil works for thestaff housing and extension of boarding facilities. The signing of the contract and disbursement ofIDA funds for staff housing and boarding facilities will be subject to confirmation that the studentpopulation has increased to 150 and is likely to increase to 300 within 2 years thereafter. Details ofspace areas in square meters, room occupancy and costs are given in Annex 3.

3.22 In a further effort to increase the output of CPAs by improving the quality of training,the project would provide the Institute for Finance Management (IFM) with financing (US$2.3million) for staff training, technical assistance, librarv support, computers and office equipment, andvehicles. As regards staff training, the IFM wishes to expand its curriculum to introduce computingcourses and extend the coverage of its finance and business courses, but for the purpose will haveto upgrade skills of faculty members. Under its training budget the IFM will be able to finance some40 man-years of training in Tanzania over the coming five years. The IFM however, does not havesufficient money within its recurrent budget to finance external training. The project would providefinancing for IFM staff to participate in degree and non-degree courses in accountancy,banking/insurance, taxation, financial management and busir.ess administration/computing. Thesecourses are for both academic and administrative staff. The project would also finance 3 consultant-years of technical assistance: two for a Professor in Finance and/or Accounting, to teach advancedcourses in accounting, and one for a Lecturer in Computer Science, to help set up facilities and theteaching of computer courses. Library support would include identified text-books and periodicals,as well as essential library equipment listed in Annex 4. There is a growing need for accountants tobe able to use computers. In addition there are no diploma courses in computing in Tanzania. T:heIFM wishes to introduce computer courses not only for accountants, but also for students who wishto specialize in computing. This subcomponent would provide IFM with a computer lab consistingof a mini computer networked to 20 PCs with appropriate software, five heavy duty printers, simpleair conditioning and wiring, as well as visual aids and equipment for desk-top publishing.

3.23 Through sponsorship by the Tanzania banking and insurance community, IFM has beenable to construct a six story building comprising hostel accommodation and six classrooms. TheInstitute's sponsors who had pledged financial support to furnish the classrooms are now unable toprovide the funding. The classrooms are needed if the IFM is to cope with the ever increasingdemand for its courses and IFM is to provide the right learning environment. The project wouldtherefore provide the IFM with classroom equipment and fittings, the replacemen: of a central

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cooling system in the lecture theater, library and function room, and other essential equipment andvehicles.

Upgrading the Legal Sector (USS5.0 million)

3.24 As explained in Chapter II, project assistance to the legal sector would be in two parts:(i) immediate direct assistance to alleviate some of the pressing needs of the sector; and (ii) a studydesigned to produce a long-term development strategy for the sector. Project direct assistance wouldbe provided to the Attorney-General's office, and, more specifically, to three divisions in that office,namely, the Civil and International Division, the Office of the Chief Parliamentary Draftsman, andthe Administrator-General's office; the Judiciary; the Law Reform Commission and RegistrarCompanies. The Attorney General's office would also oversee the formulation of the developmentstrategy for the legal sector.

3.25 At the Attomey-General's office. the project would finance training, technical assistance,library support, and the first stage of a management information and legal database system. Staffahiinr would include participation by staff members of the Civil and International Division in

courses offered by the International Development Law Institute (IDLI) and the International LawCenter (ILC). These involve development lawyers courses, courses on negotiation skills, privatization,procurement, capital markets, etc. One or two masters level courses would also be included. Thetraining for the office of the Chief Parliamentary Draftsman concentrates on legislative drafting, avery specialized skill. The training for this involves a combination of short - and longer-term trainingcourses spread over three years. This includes the diploma in legislative drafting run for BritishCommonwealth countries in Barbados, as well as shorter curses run in India, and by the RoyalInstitute of Public Administration in England. About three of the more senior staff members wouldpursue LLM courses in legislative drafting. In addition, law revisers would undertake two monthattachments with the legislative departments of neighboring Commonwealth countries where thelegislative departments function well. As the new laws being drafted are increasingly in thecommercial and corporate law areas, there is included in the project the opportunity for some of thedraftsmen to attend some of the short courses on relevant areas being offered by IDLI and ILC. Thetraining needs of the Administrator-General's Office are somewhat different, involving mostly studytours to other Commonwealth countries which have good registration programs, e.g., the U.K, Kenya,Pakistan, etc. In addition there would be some short-term training in demographic data collection.

3.26 The project would also finance for the Attorney-General's Office some technicalassistance to develop a management information and legal database system, revise the laws ofTanzania (a general and continuing exercise), and undertake a review of laws dealing with commercialmatters, starting with the Companies Ordinance. Government brought to negotiations a statementof areas of law to be reviewed, with indications of approximate completion dates and assurances wereobtained from Government that it would adhere to that schedule during project implementation.Other project support to the Attorney- General's Office would involve the acquisition of legal books,legal journals, shelving, equipment and other materials. The project would als. finance the printingof forms for the Office of the Administrator-General. Assurances were obtained at negotiatioais lh itthe Administrator-General would be allowed to charge realistic fees for services rendered and thatGovermment would provide that office with a minimum annual budget equivalent to US$300,000adjusted for inflation.

3.27 For the JudiciaI the project would finance training, library support, typewriters, andcomputers and other office equipment needed for a first-stage management information system.

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3.28 The training needs of the judiciary are immense and the project can only make a modeststart at meeting them, especially in the absence of a strategy for the development of the sector.There are, however, some very basic needs that this project can begin to address, especially withregard to the exposure of Judges and magistrates to new developments in the law which areincreasingly relevant to the work that they are doing, especially in the area of commercial laws. Theproject therefore provides for a series of local seminars and workshops for High Court judges,resident and district magistrates. These seminars, which would be organized locally with some outsideexpertise, especially at the high court level, would be as follows:

(a) High Court Judges. This would involve annual two week seminars for groups ofabout 15 judges at a time on new developments in commercial law, as well asaspects of the efficient administration of justice.

(b) Resident magistrates. Local seminars would be organized for groups of about 35magistrates at a time. As there are 137 resident magistrates, these trainingcourses which would be organized twice a year, would cover all the magistratesin two years. Again this training would be partly refresher courses as well asexposing the magistrates to new developments in relevant areas of the law,especially in the commercial law area. In addition, there would be courses ontechniques for speeding up the administration of justice.

(c) District magistrates. Again local seminars covering areas similar to those for theResident magistrates would be organized for the 134 district magistrates. Theywould be divided into six groups of about 30 each. The plan is to hold theseworkshops three times a year at the Institute of Development Management(IDM) at Mzumbe.

(d) RegistTy assistants. Under the Project the most senior Registry Assistants (courtclerks, registry staff, etc.) attached to the High Court and those in charge of theregistries at some of the other busy court centers would participate in two-weekworkshops covering subjects relevant to the efficient running of a court registry,i.e., standard registry procedures, documentation and reporting requirements.These workshops would have 50 or fewer participants. About three seminarswould be organized each year.

(e) Registrars The Registrars of the Court of Appeal and of the High Court, as wellas the Senior Deputy Registrars would attend at various times an 8 week courseoffered by the Royal Institute of Public Administration (RIPA) on thecomparative study of the administration of justice. This course is a comparativestudy of commonwealth and British systems through lectures and an exchange ofparticipants' own views and experiences. In addition, it examines differentrecords, techniques of archive management, use of advanced technology in theadministration of justice, etc.

3.29 Other project support for the Judiciary would include upgrading of the Hiig-h]Curlibrary in Dar es Salaam involving the acquisition of books, legal materials and journals, as well assome shelving and other library equipment. In addition 400 typewriters would be acquired for themagistrates courts. They would be distributed to those courts where there is no typewriter at present.Some basic computer equipment for the management information system would be acquired. The

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project would also finance the printing of Tanzania Law Reports (for about US$370,000) during thefirst two project years.

3.30 The Law Reform Commission would receive project support for staff training, technicalassistance, and computers necessary fer a iirst stage management information system. Training wouldinvolve, for the senior staff, sbhJrt attachments and study tours ,as well as courses run at theInternational Develonment Law Institute (IDLI), Rome, and short research methodology courses runby the Eastern and Southern Africa Management Institute (ESAMI). In addition, there would becomputer training for some of the support staff.

3.31 The Registrar of Companies would be assisted by the project through staff training andsupply of equipment. The project would finance on the job training of four identified staff of theDepartment at courses not exceeding six months each on intellectual property and other job-relatedsubjects. In addition, the project would finance the attendance of five other senior staff at shortcourses on intellectual Property or the Lawyers Development Courses. The project would alsoprovide photocopiers, computer work stations, and microfilm, duplicating, air-conditioning, andvoltage stabilization equipment. Further details of this component are in Annex 9, Page 15.

Studies (US$390.000)

3.32 The project would finance three studies:

(a) a study to prepare a detailed strategy for the development of the legal sector(legal sector study);

(b) a study of means of recovering directly from beneficiaries as much as possible ofthe operating costs of project beneficiary institutions (cost recovery study); and

(c) a study of practical steps necessary to implement the Government decision toopen up the audit of parastatal organizations to registered auditors other than theTanzania Audit Corporation (TAC study).

3.33 Legal Sector Studs. Given the extent of the legal sector problems described in Chapter1, and the lack of either a rigorous analysis of these problems, or a strategy for the sector'sdevelopment, there is a need for Govemment to undertake an in-depth study of the variousinstitutions and actors iri the sector, and to devise a strategy to improve its performance. The studiesthat need to be undertaken in the development of the strategy would be wide-ranging andcomprehensive. They would deal with the judiciary and the administration of justice, the role oflawyers both in the private sector and in govemment, legal education at the university as well as postuniversity, and in-service training for the sector (both professional and paralegal), the role anddevelo ment of legal information systems, building up of a legal database for use by the sector, andpos-. .e roles and sources of bilateral and multilateral assistance. The project would finance thevarious studies needed to assist the Government in developing this strategy. The terms of referencefor the overall development of the strategy and the supporting components are in Annex 6. Expertisein various areas would be recruited by the Government to assist in undertaking this task. In addition,the Project would finance various workshops to discuss the studies and work of the experts. At theconclusion of the study the Government would hold a donors meeting to present the strategy, as wellas the action plan and timetable for the implementation of the strategy. Assurances were obtained

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during negotiations that Government would complete preparation of the strategy and hold thedonors' conference not later than December 31, 1993.

3.34 Cost Recovery Stud:. The project would finance about three consultant-months oftechnical assistance and associated costs of studying methods of increasing cost recovery in theinstitutions (financial and legal) scheduled to benefit from this project. The study would be managedby NBAA. Terms of reference are in Annex 7. Assurances were obtained at negotiations thatGovernment would submit to IDA a report on this study not later than December 31, 1993.

3.35 TAC Study. The project would also finance about two consultant-months of time andother costs of a study designed to recommend specific ways of implementing the Government'sdecision to remove TAC's monopoly of the right to audit all parastatal organizations in Tanzania.Under the Public Corporations Act, the Minister of Finance can appoint any registered auditor toaudit the accounts of any parastatal in which Government holds more than 50% of the voting shares.Where the Government shareholding is less than 50%, the Board of Directors can appoint anyregistered auditor for the corporation. However, the exact modalities for implementing this decisionare unclear. For example, further legislation may be necessary to remove TAC monopoly in thoseparastatals which were set up by special Acts of Parliament. The study would focus on the practicalimplementation of this provision, with a view to its facilitation. Terms of reference for the study arein Annex 8. Assurances were obtained at negotiations that Government would submit to IDA areport on the TAC Study not later than June 30, 1993.

Project Coordination

3.36 The project would finance during the five-year project period, salaries, secretarial,transport and office expenses of two co-ordinators for the project - one to be located in NBAA co-ordinating the financial management component and two financial studies, and the other in theAttorney-General's Office, coordinating the legal component and legal sector study. Further detailsof this component are in Annex 9, Tables 11 and 12.

C Cost Estimates

3.37 The project is estimated to cost US$22 million (Table 2) of which about US$16 million(70%) would be in foreign exchange. These costs include physical contingencies of US$0.8 million(4% of base costs) calculated on the civil works and hardware components only, and pricecontingencies of US$2.5 million(13% of base costs). The latter have been calculated for local costsat the rates of 14% for 1992, 12% for 1993, and 10% thereafter; and on foreign costs at 3.5% for1992, through 1995, and 3.9% thereafter. Base costs have been estimated as of March 31, 1992. Thefirst project year is assumed to run from July 1, 1992 to June 30, 1993, and the completion date isexpected to be June 30, 1998. The costs exclude all taxes and duties from which the governmentproject beneficiaries are exempt. Project costs are sumimarized in Table 2 below, shown year by yearin Annex 9, and fuither detailed (showing quantities, unit cost, etc.) in the individual componentannexes (Annexes 1 through 5), and in the Project Files.

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TABLE 2TANZANIA

FILMUP PROJECTPROJECT COST SUMMARY

T. Sh. Million = USS 000

Item Local Foreign Total Local Foreign Total Forelgn % % of TotalBase Cost

I. Financial ManagementNBAA 293.0 595.0 888.0 1196.0 2428.0 3624.0 67.0 19.0OCAG 38.0 47.0 83.0 145.0 193.0 338.0 57.0 2.0IAA 328.0 1163.0 1491.0 1339.0 4746.0 6085.0 78 0 31.0IFM - 568.0 568.0 - 2320.0 2320.0 100.0 12.0

Sub-Total 657.0 2373.0 3030.0 2680.0 9687.0 12367.0 78.0 64.0

II. Legal SectorAttorney-General's Office-Civil & International Division - 93.0 93.0 - 379.0 379.0 100.0 2.0-Chief Parliamentary Draftsman - 70.0 70 0 - 284.0 284.0 100.0 1.0-Administrator-General's Office 44.0 66.0 110.0 180.0 270.0 450.0 60.0 2.0-Techn"cal Assistance - 105.0 105.0 - 430.0 430.0 100.0 2.0-Printing 220.0 221.0 441.0 900.0 900.0 1800.0 50.0 9.0-Ubrary Support - 43.0 43.0 - 175.0 175.0 100.0 1.0Judiciary 77.0 260.0 337.0 313.0 1063.0 1376.0 74.0 8.0Law Reform Commission - 51.0 51.0 - 210.0 210.0 100.0 1.0Registrarof Companies 47.0 47.0 - 195.0 195.0 100.0 1.0

Sub-total 341.0 956.0 1297.0 1393.0 3906.0 5299.0 72.0 25.0

Ill. Studies:Legal Sector Strategy - 61.0 61.0 - 250.0 250.0 100.0 1.0Cost Recovery Study - 20.0 20.0 - 80.0 80.0 100.0 0.4TAC Study - 15.0 15.0 - 60.0 60.0 100.0 0.3

Sub-total 0.0 96.0 98.0 0.0 390.0 390.0 300.0 2.0

IV. Project Coordination:- Financial 21.0 25.0 46.0 85.0 103.0 188.0 55.0 1.0- Legal 16.0 25.0 41.0 65.0 103.0 188.0 60.0 1.0- Project Launch Werkshop 2.0 - 2.0 7.0 - 7.0 0.0 0.0Incremental Operating Costs 194.0 - 194.0 793.0 - 793.0 0.0 4.0

Sub-total 233.0 50.0 283.0 950.0 206.0 1156.0 18.0 6.0

TOTAL BASE COST 1231.0 3475.0 4706.0 5023.0 14189.0 19212.0 74.0

PHYSICALCONTINGENCIES 65.0 137.0 202.0 264.0 561.0 825.0 68.0 4.0PRICE CONTINGENCIES 355.0 238.0 623.0 1450.0 1094.0 2544.0 43.0 13.0TOTAL COST INCLUDING ALL

CONTINGENCIES 1651.0 3880.0 5531.0 6737.0 15844.0 22581.0 70.0 117.0

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D. Fmancing

3.38 Proposed project financing is summarized in Table 3 below:

Table 3Project Financing Plan

(US$'Q0)

Item IDA Government SIDA Total

Direct Support to AccountingAuditing and Legal Sector 19,152 1,213 226 20,280

Studies 439 - - 439

Project Co-ordination- Financial 212 - - 212- Legal 189 - 189- Project Launch 8 - - 8

Incre. Operating Costs ------ 122 - 1.122TOTAL 20000 2 55 226 22581

Percentages 88.6% 10.4% 1% 100%

3.39 The project would be financed as to US$20.0 million (89%) by IDA, US$2.3 million(10%) by Government, and US$226,000 (1%) by SIDA. Government financing would pay forincremental operating costs including incremental costs of providing housing to entitled NBAA staffnot currently housed, and proportions of costs of goods and civil works procured locally. SIDAfinancing would pay for all costs of revising and printing Tanzanian laws, under parallel financingarrangements. IDA financing would pay for all project costs not covered by either Government orSIDA financing. IDA funds would be a credit to the Government of Tanzania on standard IDAterms. SIDA financing would be a grant to the Government of Tanzania. All project financing(IDA, SIDA and Government) would be passed on to beneficiary project institutions as grants fromthe Government of Tanzania to those institutions.

E Procurement

3.40 The table below summarizes the project elements and their estimated costs and proposedmethods of procurement. Disbursement and implementation Schedules, allowing sufficient time forvarious procurement steps, are given in Annexes 10 and 11 respectively.

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Table 4Summary of Proposed procurement Mraffaments

(US$ million equivalent including Contingencies)

Procurement ModeodsTdai

Prolect Elements ICB LCB Other N.B.F. CoOt

1. CivilWorks Contracts (buildings) 6.85 - - - 8.85(Excluding Part B) (6.96) - - - (5.95)

2. GOODS

2.1 Vehicles 0.58 0.10 - - - 0.05(Excluding Part B) (0.62) (0.00) - - - (0.81)

2.2 Office Equipment& Computers 1.00 0.54 0.20 - 1.74(0.98) (0.49) (0.18) - (1.85)

2.3 Printng of Law books & Reports 2.83 - - - 2.83(Excluding Part A) (2.89) - - - (2.89)

2.4 Ubray Books & Ubrary Equipment 1.12 - 0.10 - 1.22(1.08) - (0.09) - (1.16)

3. CONSULTANCIES

3.1 Oesign/Engineering/Supervision - - 0.72 - 0.72(Excluding Part B) - - (0.72) - (0.72)

3.2 Technical Assistance - - 2.92 0.22 /a 3.14- - (2.92) (-) (2.92)

3.3 Editng of StudyManuais - - 0.18 - 0.18(Excluding Part B) - - (0.18) - (0.18)

3.4 TrainIng - - 3.73 - 3.73- - (3.73) - (3.73)

4. MISCELLANEOUS

4.1 ProjectCoordination (Salaries) - - 0.13 - 0.13_ - (0.13) - (0.13)

4.2 Project coordination (Operation & Malnt.) - - 0.27 - 0.27- - (0.27) - (0.27)

4.3 incrementalOperatingCosts - - - 1.12 /d 1.12_ _ - (-) 0.00

Total Costs 12.35 0.64 8.25 1.34 22.58Total Fnancec by the IDA credit (11.20) (0.58) (8.22) (-) (20.00)

.- SU SMu mma= Si

Note:' Figures In parentheses are the respectIve amount financed by the iDA credIt.N.B.F.: Not Bank-Financed.

The foilowing capital letters show the project componentsPart A Financia ManagementPart B: Legal and Judicial Framework

* Footnotes with small letters indicate amounts financed by Government and SIDAprocured under their procedures:(a): US$0.22 financed by SIDA(b): US$0.06 financed by SIDA

Figures may not add up due to rounding

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3.41 The civil works included under the project are for: (i) the construction of the NBAAheadquarters in Dar Es Salaam comprising offices, and training facilities estimated at about US$3.2million equivalent; and (ii) the extension and remodeling of the library, offices, boarding facilitiesand staff housing at the LAA in Arusha, estimated at about US$3.6 million equivalent. Constructionis expected to be completed in Project Year 2, with the exception of civil works for the extension ofboarding facilities and staff housing at the IAA. The signing of the contract for boarding facilitiesand staff housing and IDA financing thereof will be subject to confirmation by IDA that the studentpopulation has increased to 150, and is likely to increase further to 300. All civil works contractsfinanced by IDA and totalling US$6.8 million equivalent, would be grouped into three packages,estimated to cost more than US$2 million each. These items, which are suitable for InternationalCompetitive Bidding, (ICB), would be procured in accordance with the Bank's Guidelines forProcurement Under IBRD Loans and IDA Credits issued in May 1985. "Instructions to Bidders"would clearly determine presentation of updated critical information on the bidder's financial andtechnical strength, and indicate the minimum requirements for bidders to be qualified. A preferentialmargin of 7.5% would be given to domestic contractors, in accordance with IDA's Guidelines.

3.42 Goods financed under the project would include vehicles, furniture, computers, printingof books, library books and equipment, office equipment and supplies, for a total value of US$6.4million equivalent including contingencies. Most of the goods would be procured in Project Years1 and 2. They would be grouped into about 5 packages of at least US$100,000 each to be procuredthrough Intemational Competitive Bidding (ICB), in accordance with the Bank's Guidelines forProcurement under IBRD Loans and IDA Credits, issued in May 1985. Where ICB procedures areused, a preferential margin of 15%, or the applicable customs duty, whichever is less, over the c.i.f.prices of competing goods wouk'r. r v given to domestic manufacturers in accordance with the Bank'sGuidelines. Contracts for goul, .,rocured through ICB would total US$5.5 million, representingabout 85% of the total value o'fgo s Is financed by IDA.

3.43 Other contracts for the purchase of one or two urgently-needed cars, office furniture, orsupplies, estimated to cost less than US$100,000 each, for which there is not enough time to groupinto packages of at least US$100,000 equivalent, and which are not likely to attract foreign bidders,would be awarded through local competitive bidding (LCB), in accordance with procedures acceptableto IDA, provided that the aggregate amount of such procurement does not exceed US$0.6 million(equivalent to 9% of the total value of goods financed by IDA).

3.44 The remaining 5% of the total value of goods, mainly office supplies, journals and paperproducts, which cannot be grouped into bid packages of at least US$30,000 equivalent each, wouldbe procured on the basis of prudent international and/or local shopping based on price quotationsobtained from at least three reliable suppliers to ensure competitive prices, provided that theaggregate amount of such procurement does not exceed US$0.3 million equivalent.

3.45 Consultants financed by IDA, totalling US$7.5 million equivalent would be contractedin accordance with the Bank's Guidelines for the Use of Consultants issued in August 1981. Thenature of these consulting services would be mostly for training activities, preparation of manuals andtechnical assistance, but they also include architectural services for the design and supervision of theconstruction program, and for procurement services. The consultancies for preparation of NBAAmanuals for each subject would be contracted directly with individual specialists selected on a solesource basis and resulting in contracts not exceeding US$20,000 each. The cost estimates forconsultancies are net of taxes. Consultancy services to be financed by IDA would total about 380

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man-months, most of these being for training services. Terms of reference for major consultantservices and details of training and other consultancies (including description of services, local/foreign,estimated time of completion and costs, and selection process) are given in Annexes 6, 7 and 8, andin individual annexes dealing with project components (i.e. Annexes 1 through 5).

3.46 Procurement status of ongoing Projects in Tanzania. The disbursement lag under certainongoing IDA-funded projects is partly the result of poor procurement practices, i.e., poor planningand slow progress in civil works due to inadequate supervision, and the Government's cumbersomeprocurement procedures. The capacity of project units to plan and closely supervise IDA-financedprocurement has been also a major constraint to the timely execution of project activities. However,recently, resulting from closer supervision and an emphasis on solving the problem, majorimprovements have been observed in some projects.

3.47 Procurement arrangements under the propoged project. For the proposed project anumber of actions are planned in order to strengthen the Project Coordinators and others involvedin the implementation process:

(a) Two project coordinators would be recruited -- one for financial managementcomponent and the other one for the legal sector component. Past experiencein project management and procurement would be taken into consideration inthe selection process. They would participate in a four-week training course inprocurement, organized jointly by the International Trade Center (ITC) andESAMI, in Arusha, Tanzania, from July 3 to 31, 1992;

(b) A detailed implementation schedule for works, goods and services to beprocured under the project was prepared at time of appraisal; it was reviewedand updated during negotiations. This would contribute to ensuring timelyprocessing of all actions required. During implementation, all bid evaluationreports transmitted to IDA for review would contain an updated copy of theimplementation schedule;

(c) Design, preparation of bidding documents, and supervision of civil works arebeing contracted out to a local consulting firm selected in accordance with IDAGuidelines. Based on the scope of the construction program agreed atappraisal, schematic designs and specific accommodation requirements havebeen prepared by another consultant;

(d) Project coordinators would be in place before credit or grant effectiveness.

3.48 The two Coordinators within the NBAA and the Attorney-General's Office would beresponsible for procurement. They would have periodical access to support from internationally-recruited procurement specialists, as required, (two man-months per year during the first three yearsof the project). fhe two coordinators would be responsible for the preparation of bidding documentsprior to credit effectiveness.

3.49 The coordinators would also develop a capacity to collect and record procurementinformation, as follows: (a) Prompt reporting of contract award information; (b) Comprehensivemonitoring of reports to IDA (on a semiannual basis and at time of submission to IDA of each bidevaluation), indicating: (i) revised cost estimates for individual contracts and the total project,

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including best estimates of allowances for physical and price contingencies; (ii) revised timing ofprocurement actions, including advertising, bidding, contract award, and completion time for individualcontracts; and (iii) compliance with aggregate limits cn specified methods of procurement.

3.50 A Country Procurement Assessment Report (CPAR) has been completed in 1987. Forthis project, findings of the CPAR remain valid. In general, Tanzania's current procurement laws andregulations do not conflict with IDA Guidelines. Regarding ICB, no special exemptions, permits orlicenses need to be specified in credit documents because Tanzania's procurement practices allowIDA's procedures to take precedence over any contrary provisions in the local regulations. WithIDA's assistance under the IDA-financed Integrated Roads Project, a consultant is being selected toassist the Government in reviewing current Government supply and management procedures, and inpreparing standard bidding documents. Proposals would also oe made for the issuance of newcomprehensive procurement regulations.

3.51 Review by IDA IDA-financed contracts for works above a threshold of US$1 millionequivalent and contracts for goods above a threshold of US$100,000 equivalent each would be subjectto IDA's prior review procedures. The review process would cover 100% of the total value of theamount contracted for works, and about 86% of the total value of the amount contracted for goodsfinanced by IDA. Selective post-review of awarded contracts below the threshold levels would applyto about one in three goods contracts.

3.52 During negotiations, agreement was reached on the proper monitoring of theprocurement, as well as the use of Bank Sample Documents and standard procurement documentsin Tanzania to be developed by the Ministry of Public works. The Government gave assurances atnegotiations that it would apply the procurement procedures and arrangements outlined above.

F. Disbursement

3.53 IDA funds would be disbursed as indicated in the table below. Government wouldfinance project incremental costs (building and equipmental maintenance, incremental rent for staffhousing at NBAA, fuel, etc.), except the operating costs of project coordinators' offices. Governmentfinancing also includes Government shares of any civil works, goods or printing procured locally.SIDA financing for law revision would be disbursed 100% against that item, and to the extent thatit fails to cover all the law revision scheduled during the project period, IDA funds (if available)could be applied for this purpose.

USS Million Proposed Disb. %

(a) Civil Works 5.37 100% of foreign and 85% of local costs(b) Vehicles and Equipment 2.06 100% of foreign and 90% of local costs(c) Training 3.36 100%(d) Technical Assistance 2.92 100%(e) Library books and equipment 1.05 100% of foreign and 90% of local costs(f) Printing 2.42 100% of foreign and 90% of local costs(g) Studies 0.38 100%(h) Project Coordination 0.39 100%(i) Refunding of PPF 0.25(j) Unallocated 1.80

20.00

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3.54 Disbursements for all IDA-financed expenditures would be against full documentation,except for the operating costs of the project co-ordinators' offices and orders with values belowUS$20,000 (or its equivalent in local currency), which would be based on statements of expenditure.Supporting documents for statements of expenditure should be retained by the borrower for IDAreview during project supervision. Assurances were obtained at negotiations that Government wouldabide by the disbursement procedures described in this and the preceding paragraph.

3.55 The project activities and commitments would be undertaken within five years, butdisbursements are expected to trail into the sixth year, according to the following schedule, which isdetailed in Annex 10.

Estimated IDA Disbursements in USS Thousands

FLscal Year 1993 1994 1995 1996 1997 1998

Annual 810 4,614 7,025 6,440 744 367

Cumulative 810 5,424 12,449 18,889 19,633 20,000

3.56 The rate of disbursement indicated in the above paragraph is quite conservative, giventhat 72% of project costs (mostly for buildings) are expected to be incurred in the first two years ofthe project, and 94% in the first 3 years. The conservative schedule assumed here, especially inproject years 1 and 2, allows for the inexperience and learning curve of project coordinators andothers who would be involved in the procurement and disbursement processes.

3.57 To ensure that funds for the project would be readily available when needed, and toreduce the number of disbursement claims to be processed, two special accounts in US$ would beopened by the Central Bank in the name of the Project in an off-shore commercial bank, one for thefinancial management component and its coordinator at NBAA (handling ali the financialmanagement-related components, studies and coordination), and the other for the legal frameworkcomponent and its coordinator at the Attorney-General's Office (for the legal sector component, legalsector study, and coordination). Upon credit effectiveness, US$0.5 million would be deposited byIDA in each of these accounts, to pay for IDA-financed expenditures. Further deposits to replenishthe Special Account wou!d be made against withdrawal applications supported by appropriatedocumentation. Assurances would be sought at negotiations that the borrower would implement therules described in this paragraph for the opening and operation of the special accounts.

G. Accounts and Audit

3.58 All project beneficiary institutions already maintain accurate and up-to-date accountswhich are audited by auditors acceptable to IDA. The appraisal mission obtained on demand auditedaccounts (all with clean audit reports) for the five immediately preceding years, for NBAA, and IFM.

3.59 The Financial Management Component Coordinator (FMCC) and the Legal SectorComponent Coordinator (LSCC) would each maintain records adequate to account for all projectfunds for which they are responsible. For each coordinator, these records would take the form of(i) a Cash Book to record all funds received and paid out in respect of the project; (ii) a SpecialAccount Cash Book to record Special Account transactions; (iii) an Order Book to record all orders

- 30 -

placed on behalf of the project, (iv) a Bills Payable Book to record all unpaid charges (e.g., unpaidengineers or architects certificates for civil works); (v) a Bills Receivable Book to record any creditsreceived by the project; (vi) Bank Statements for all project bank accounts (including the SpecialAccounts); (vii) monthly Bank Reconciliation Statements for all project bank accounts; and (viii)receipts, invoices, and similar evidence of transactions. All project implementation transactions(including procurement orders, disbursements, receipts, payments, etc.) would pass through thecoordinator for recording purposes before reaching their destinations, even though coordinators haveno executive power for project implementation, except for their office budgets. On June 30 eachyear, each coordinator would prepare: (i) a Receipts and Payments Account; (ii) a list of UnpaidCommitments; (iii) a list of Credits Not Yet Received. These three documents are the "annualaccounts" to be submitted to IDA annually.

3.60 The annual accounts referred to in the above paragraph, and the Special Accounts andStatements of Expenditures referred to in para. 3.57 would be audited annually by an auditoracceptable to IDA. The Receipts and Payments Account, list of Unpaid Commitments, list of Creditsnot Yet Received, Special Accounts and Statements of Expenditures, together with the auditor'sreport on each of them, would be submitted to IDA within nine months following the end of eachproject year. Project years would run from July 1 to June 30.

3.61 Assurances were obtained at negotiations that the borrower would implement theprovisions described in para. 3.59 and 3.60 above with regard to project accounting and auditing.

IV. PROJECI IMPLEMENTATION

A. Oreanization and Management

4.01 No new institution would be created under this project. Instead, project beneficiarieswould apply the enhanced human and material resources supplied by the project in the improvementof the quality of their services. In view of the large r.umber of beneficiaries involved, and to facilitateproject implementation and supervision, a Financial Management Component Co-ordinator (FMCC)to be located in and answerable to the National Board of Accountants and Auditors would co-ordinate and report on the implementation of all accounting and auditing components, includingassistance to firnancial training institutions, while a Legal Sector Component Coordinator (LSCC) tobe located in the Attorney-General's office, and answerable to the Deputy Attorney-General, wouldsimilarly co-ordinate and report on the implementation of all components concerned with the up-grading of the legal framework and administration of justice.

4.02 Within the broad project management arrangements described in the precedingparagraph, each of the nine agencies listed in the matrix in Chapter Im, Table 1, would be responsiblefor implementing its own project components in accordance with procurement and disbursementguidelines described in Chapter HI. However, as also stated in the Chapter III, all projecttransactions and related documents would pass through the coordinators, since they would beeffectively the project accountants.

4.03 Assurances were obtained at negotiations that the two project coordinators:

(a) would be appointed before effectiveness of the IDA Credit; and

- 31 -

(b) would be sent to ESAMI with PPF financing to participate in a ProcurementSeminar not later than October 31, 1992.

4.04 During Project preparation a committee was established to undertake the preparationof the legal component. This committee would be continued under the Project. The Lg!alComponent Committee (LCa) would be chaired by the Deputy Attorney-General and consist ofmembers from the Civil and International Division, the Legislative Division and the Administrator-General (all of the Attorney-General's office), the Secretary of the Law Reform Commission, theRegistrar of the Court of Appeal and the Registrar of Companies. The LCC would meet at leastquarterly, and would review progress and resolve any outstanding issues.

4.05 For the legal sector study, the Government would by December 31, 1992, establish a TaskForce. to be headed by an eminent Tanzanian lawyer, with representation from the judiciary, theAttomey-General's Office, the Law Society and the University of Dar es Salaam. The Task Forcewhose secretary would be firnanced by the project would supervise the work of the various specialistsundertaking the studies and would prepare the necessary reports. The Task Force would alsoorganize, not la er than December 31, 1993, the Donor's conference at which the strategy would bediscussed. The IDA allocation for this component (US$281,000 including contingencies) would payfor Tanzanian consultants and domestic travel costs of the task force. There is a high donor interestin participating in this study and several donor countries have agreed to cofinance it, at least byfinancing the costs of participation of their nationals on the task force.

4.06 Assurances were obtained at negotiations that the Borrower would retain the LCC,appoint the Task Force, and hold the donors' conference as described in paragraphs 4.04 and 4.05above.

B. Monitoring. Evaluation and Reporting

4.07 On the borrower's side the project would be monitored by the two project co-ordinators.T-hey would prepare not later than June 30 of each fiscal year (except for 1992/93 when the relevantdate would be September 30, 1992) a budget of the amount of project work (i.e. in terms of physicalimplementation), procurements and disbursements expected during the project year. On December31 and June 30 each year, they would prepare and send to IDA Progress Reports comparing theactual with budgeted physical implementation, procurements and disbursements. Assurances wereobtained at negotiations regarding these budgeting and progress reporting arrangements. A ProjectSupervision Plan is in Annex 12.

4.08 A Project Launch Workshop will be held in Tanzania within three months followingcredit effectiveness, and financed from the project, to acquaint staff of beneficiary institutions, IDAand cofinanciers w1th problems likely to be encountered during project implementation, and work outpossible solutions. In addition, IDA would endeavor to field project supervision missions every sixmonths during the project period.

C Mid-term Review

4.09 Approximately two and a half years following credit effectiveness (i.e. not later than June1995) there would be a formal mid-term review of the project mounted jointly by Government, IDAand SIDA to assess not only the progress of implementation, but also the continued relevance of theproject's assumptions and provisions for the rest of the project period. The review mission would

- 32 -

produce an 'Aide Memoire" recording its conclusions and recommending any action it considersnecessary in order to improve project implementation. To the extent that this has not already beenconfirmed by IDA supervision missions, the mid-term review would, among other things, assesswhether IAA's student population has increased to 150 and is likely to increase within the followingtwo years to 300 - the trigger point at which construction of the additional student hostel and staffhousing provided for in the project would be justified.

4.10 Assurances were obtained during negotiations that Government would appointparticipants and fully collaborate with IDA and SIDA in the mid-term review.

V. BENEF1TS. RISKS. AND SUSTAINABILTY

A. Benefits

5.01 Although the institution building nature of this project makes most of its benefits hardto quantify, a few can be quantified, and would be carefully monitored during the project. Forexample, the pass rates of iAA students in the national CPA examinations (currently about 40%compared with the national average of 20%) would be monitored. Pass rates of both IAA and IFMwould be established in the first project progress report (probably due as of December 3 ', 1992).Thereafter, changes in these pass rates would be reported in each progress report as one quantitativeindex of training improvement.

5.02 Tanzania's standards of accounting and auditing are also expected to show considerableimprovement as a result of the project. Government brought to negotiations:

(a) a schedule of accounting and auditing standards to be issued during the projectperiod, with the approximate issue dates; and

(b) a statement of areas of Tanzanian law scheduled for review during the projectperiod, indicating expected dates of completion. Each annual budget for theproject would show that year's work, and each progress report would includeprogress achieved in the implementation of both (a) and (b) above.

5.03 In addition to the quantitative benefits described in the two preceding paragraphs, everyprogress report and every supervision mission report would also endeavor to present an assessmentof qualitative improvements observed in the performance of each of the ten project beneficiaryagencies.

B. Impact on the Economic Reform Prram and the Environment

5.04 The improvements expected to result from this project are a pre-requisite for therealization of many of the benefits anticipated from Tanzania's economic reform program. Forexample, revision of the Companies Ordinance is a pre-requisite for the success of the parastatalreform and privatization program. Private investment also requires a reliable and transparent legalframework, as well as good accounting and auditing systems. To a large extent, therefore, this projectprovides the practical underpinnings for the policy changes being introduced under Tanzania'sstructural adjustment programs.

- 33 -

5.05 Enviromnental AsDect This technical assistance and training project raises noenvironmental issues. Contracts for buildings would require contractors to rectify any environmentaldisturbances caused by their activities.

C Sustainability

5.06 The project is easily sustainable for several reasons. As noted in Chapter IV, no newinstitution is to be created under the project. Existing agencies would basically carry on with theirnormal functions. They are not even being required to carry on any major activity in which they arenot already engaged. However, they would be receiving funds to complete the next phase of theiralready-planned expansion, as well as training, and technical assistance designed to improve theirefficiency. In the case of NBAA and the training institutions, the permanent increase in theirrecurrent costs resulting from the project would be more than compensated by the increased revenuesexpected to result from their improved quality of service, increased clientele, and greater costrecovery. For the institutions involved in the legal sector, no significant increase in recurrent costsis anticipated.

D. Risks and Uncertainties

5.07 The only foreseen risk is the possible inability of beneficiary agencies to absorb and putto good use the resources and improvements being introduced through the project. However, built-inproject measures, such as training, technical assistance, highly decentralized project management, butclose coordination, and gradual phasing of expenditures are all designed to minimize that risk.

VL ASSURANCES AND RECOMMENDATION

6.01 The following would be a condition of effectiveness of the IDA credit:

- appointment of the two project coordinators, FMCC by the NBAA, and LSCCby the Attorney-General's Office (para. 4.03).

6.02 The following would be conditions of disbursement of specific portions of the IDA credit:

(a) the offer by NBAA of three offices to TAA in the proposed NBAA officebuilding would be a condition of IDA financing of the office building (para. 3.13);

(b) satisfactory evidence being furnished to IDA that the regular student populationat the IAA has increased to 150 would be a pre-condition for disbursement ofIDA funds for the financing of the student hostel and the staff housing (para.3.21).

6.03 Assurances were obtained at negotiations that:

(a) Government would abide by the schedules agreed at negotiations for issuingaccounting and auditing standards, and reviewing laws (para. 3.07);

- 34 -

(b) the Administrator-General would be allowed to charge realistic fees for servicesrendered and Government would provide his office with a minimum budgetequivalent to US$300,000 annually, adjustedr for inflation (para. 3.26);

(c) procurements would be in accordance with the provisions of paragraphs 3.47through 3.52;

(d) disbursements of the IDA Credit would be in accordance with the provisions ofparagraph 3.53 and 3.54;

(e) two off-shore Special Accounts would be opened by Government and operatedas described in paragraph 3.57;

(f) Government would send the two project co-ordinators to a procurement seminarin ESAMI, Arusha, not later than October 31, 1992 (para. 4.03);

(g) Government would retain the LCC, appoint the legal sector strategy Task Forcenot later than December 31, 1992 (paras. 4.04 and 4.05);

(h) annual budgets and work programs would be prepared and sent to IDA not laterthan June 30 each year (September 30 in Year 1), and compared with actualperformance in each progress report (para. 4.07);

(i) Government would by June 30, 1995, undertake jointly with IDA and SIDA amid-term review (para. 4.10);

(j) Government would submit the report of the cost recovery study to IDA not laterthan December 31, 1993 (para. 3.34);

(k) Government would submit the report of the TAC study to IMA not later thanJune 30, 1993 (para. 3.35); and

(l) Government would prepare the legal sector strategy and hold the donors'conference not later than December 31, 1993 (para. 3.33).

6.04 Subject to the above agreements and conditions, the project is suitable for an IDA Creditof SDR14.6 million (US$20.0 million equivalent) to the Government of Tanzania on standard IDAterms with 40-years maturity.

- 35 -ANNEX 1Page 1 of 9

TANZANIA - FILMUP PROJECTTHE NATIONAL BOARD OF ACCOUINTANTS AND AUDITORS

A. Baskground

1. NBAA was established under the Accountants and Auditors (Registration) Act of 1972, whichrequires all accountants and auditors practicing in the country to register with the Board. The mainfunctions of the NBAA are to conduct examinations and regulate the activities and conduct of accountantsand auditors. The NBAA offers an accounting technician qualification plus a professional Certified PublicAccountant (CPA) qualification. In addition to its student education programme the NBAA organizesshort seminars for practicing accountants. Despite its many achievements, the NBAA is constrained inthe activities it can undertake by both staff capacity and finance.

B. Training

2. The objective of this sub component is to develop NBAA staff so that they are capable of runningan effective and efficient body with high accounting and auditing standards. To be able to do this staffneed to be trained in modem accounting and auditing techniques. In particular, NBAA wishes tocomplete its program of issuing accounting and auditing standards, and expand its activities to includecomputer training for students and members, and to introduce practice review. Under this Projectfunding would be provided for seven masters degree courses in accounting, publicadministration/management, financial management, management and computer science, five diplomacourses, one CPA course and 13 short update courses in financial accounting, manpower managementand administration, records management, computer studies and examination administration.

C. Technical Assistance

3. A problem in Tanzania is lack of compliance with accounting and auditing standards. It is veryimportant therefore that auditors maintain the highest standards. NBAA would like to introduce a practicereview system whereby it would review whether an auditor is conforming to NBAA's standards. NBAAstaff have not had experience of operating such schemes. In 1991 NBAA introduced a new examinationsyllabus. Until NBAA staff receive additional training they lack the experience to be able to review thesyllabus to ensure that standards are being maintained and where necessary improvements are being made.This sub component would provide NBAA with an expert for eight weeks over the life of the project toassist in drawing up guidelines for practice review and monitoring the work of NBAA reviewers, and anexpert for eight weeks over the life of the project to assist NBAA review its examination scheme.

D. Other Assistance - Study Manuals

4. The objective of this sub component is to improve the pass rates in the NBAA examinations. Passrates in NBAA examinations are very poor. Textbooks in Tanzania are in very scare supply, and thereare no books covering Tanzania accounting, auditing and taxation. To improve NBAA's pass rates andincrease the number of accountants and auditors in the Tanzania NBAA has recruited authors to write 30study manuals over the next two years. These manuals would be sold to students at a price they canafford, and which would cover the cost of the printing. NBAA needs assistance with paying the authorsand editors, and for typesetting and pasting. Funding would also be provided to cover the initial startup costs of the printing, thereafter the manuals would be self financing.

- 36 -

ANNEX IPage 2 of 9

E. OMce Equipment. Computers and Computerized Information Systems

5. NBAA has been fortunate in receiving some equipment financed by the British Council and Irish Aid.The equipment is however, heavily over-utilized and does not meet the demands of running a growingprofessional body. NBAA currently has a manual members and students record system, and anaccounting system which is time consuming to use and does not enable NBAA to easily analyze data.A computerized database for members and students and an accounting system would help alleviate theseproblems. There is an urgent need to train accountants in computer skils, so that they can effectivelyuse and help design the computer systems currently being installed in Tanzania. This includes not justfamiliarization with basic computer programs, but also training in the use of accounting software. NBAAcan play a very useful role in introducing members and working etudents, who do not have access tocollege facilities, to gain hands-on computer experience. This sub v . nponent would provide the NBAAwith seven typewAiters, six duplicators, one heavy duty photocopier, one telex, one facsimile machine,fifteen personal computers, software and three printers.

F. Transport

6. NBAA is required to travel around Tanzania to conduct examinations, give seminars, inspect teachinginstitutions and visit companies. The activities of the NBAA are limited due to few vehicles it possesses.This sub component would provide NBAA with an additional three four wheel drive vehicles and twominibuses to enable it to offer a better service to its members and students.

G. Ofice Accommodation

7. NBAA occupies three sites: NIC House, which is its headquarters and main office; Mavuno Housewhich houses its Education, Research and Training and its Examinations Divisions and Mhasibu Housewhere three temporary classrooms have been built for training and to house the printing unit. Thisfragmentation causes NBAA administrative problems. In addition NBAA has been advised that from1992 its rent for NIC House will increase to a level it cannot meet. NBAA holds the title to the MhasibuHouse plot of land. The plot covers 1.614 acres, and the NBAA would like to build some additional lowlevel buildings so that all its activities can be located on one site. NBAA does not have the financialresources to do this. This sub component would provide office accommodation for NBAA.

- ~37 -ANNEX IPage 3 of 9

TANZANIA - FILMUP PROJECTTHE NATIONAL BOARD OF ACCOUNTANTS AND AUDITORS

TRAININQ - US$'000

cou TAR I TEAR S TEAR T TEA 4 ARS TO_AL

A. LONG TERM

m|u 23 22 45

| Dj_ is Tb 27 27

D4i- is ButM P 22 45

Dq3 i PP6i.s 27 27

MSG 241,sv o eT.dr 23 22 45

M.| Acmbas 27 27

M &BA 23 23 45

MS Aamodia 27 27

US, Opti.~ R....& 22 45

I4PA 2 27

CPA M GO IV 2. is 4 6

ADCA is 1 . s 69 9

ADBA is 2. _ 3 6 9l

SUBTOTAL 10)$ 1326 73.9 49.6 22 3784

3 SHORT TERM

33 isff wu 1. & 3 X 30 24 24 *10 20 to

TTl. =34 3 3 i 5iii0.6 97.9 596 4 2 4144

!N B

_3~~~~ I i |

S0000gg~~~~~~~ jS E~ s26

2~~~~~~~~~~~~~~~~~~~~~~~ p22UH !

v

Eojectd Cost Comparisons for Civil Works(All areas are gross in2 . Other figures are T.Sx1000)

NEMA Brief Cost Projection Design Cost Projection

1. Office Building 886m2 @ 140 = 124,000 900m2 0 140 = 126,0002. Other facilities

New Construction 1448m2 @ 140 = 202,720 1380m2 @ 140 = 193,200Repovation 379m2 @ 35 = 13,265 460m2 @ 35 = 16,100

3. Housing 23xt 16m2 @ 130= 34.840 24x121nm2 @ 130 377.520Total NBAA 5380m' 686,713 712,820

1. Admin. BuildingNew Building 1481m2 @ 120 177,720 1256m2 x 120 = 150,720Renovation 541m2 @ 30 = 16.230 614m2 x 30 = 18.420Sub-totals 2022m2 193,950 1870m2 169,140

2. Boading FacilitiesHousing 569m2 @ 120 = 68,234 960m2 x 120 = 115,200Cafeteria 911m2 @ 80 = 72,882 900m2x 80 72,000Recreation 23m2 @ 120 = 2,754 50m2 x 120 - 6,000Sanitary 518m2 @ 120 = 62208 178m2 x 120 = 21Sub-totals 2021m2 206,078 2088m2 214,560

3. Staff HousingBungalows 12 x 146m2 x 100 = 174.9 12xl26.25m2xl00 = 151.Total IAA 574,988 535,200

PROJECT TOTALU 1,261,700 1,248,020

ANNEX 1

A land-swap (or exchange of equal pieces of land), with the Page 6 of 9neighbouring secretarial school, could result in an increase of 5 or 6 parkingspaces at no extra expense.

Expansion to the facility can take place in the front car park area.

3. Net and Gross Areas

No S&a= Brief Area DesigLn Area

Office Block

1. Board Room 48 m2 48 m2

2. Office for Board Room 17 123. Registrar 24 244. Secretary 12 125. Waiting 12 126. Directors (4 @ 17 m) 68 (4 @ 18 m) 727. Secretaries (4@ 12 mi 48 (4 @ 13.5m2) 548. Managers (14 @ 12 m2) 168 1689. Secretaries (7 @ l0in) 70 8410. Staff (12 @ 12 mi 144 144

Net 611 e 2 630 m2

Gross 886 m2 849 m2

Other Facilities

11. Library 440m2 540 i 2

12. Periodicals 48 4813. Seminar

Rooms (3 @ 42 im2 ) 126 12614. Multi Purpose

Rooms (2 @42 rn) 84 8415. Storage 87 150 216. Cafeteria 348 20017. Kitchen - 120 218. Lobby 174 10019. Desktop Publishing 35 40 220. Printing 74 80 221. Toilet 61 4822. Toilet - 30223. Maintenance Room 35 402

Net 1259 1606Gross 1826 1748

ANNEX 1

- 41 - Page 7 of 9

24. Caretaker's House (Existing and not included in net or Gross Areas)

I Includes Library Office, Reference Area & check out desk.

2 Area is in an existing structure

- 42 -

AN NEX I

Page 8 of 9TANZANIA

FILMUP PROJECTTERMS OF REFERENCE

THE NATIONAL BOARD OF ACCOUNTANTS AND AUDITORS

Background

1. NBAA was established under the Accountants and Auditors (Registration) Act of 1972,which requires all accountants and auditors practicing in the country to register with the Board. The mainfunctions of the NBAA are to conduct examinations and regulate the activities and conduc; of accountantsand auditors. The NBAA offers an accounting technician qualification plus a professional Certified PublicAccountant (CPA) qualification. In addition to its student education programme the NBAA organize shortseminars for practicing accountants.

Accounting and Auditing Standards Expert

2. To date NBAA has produced - Tanzanian Accounting and Auditing Standards. Currentlyproposed Tanzanian Accounting and Auditing Standards are drafted by members of staff in conjunctionwith the Research and Standards Committee, and are approved by the Board of NBAA before they areissued to members. NBAA has established a five year program to update existing standards and introducenew accounting and auditing standards. NBAA has not had any formal training in standard setting, andit would like assistance in the standard setting process to ensure that its standards are of a high qualityand reflect the needs of Tanzania.

3. A problem in Tanzania is lack of compliance with accounting and auditing standards. Tobe able to enforce compliance NBAA would like to introduce a practice review system to examine theprofessional standards of auditors. NBAA staff however, have not had experience of operating suchschemes. The role of the expert would therefore be twofold; to monitor NBAA's program of accountingand auditing standards and to assist the NBAA in establishing a practice review scheme. In particularthe expert would:

- review all draft accounting and auditing standards, and provide written commentson the technical content and relevance of each standard;

- provide guidance to members of NBAA staff, the Research and StandardsCommittee and the Board on how to write accounting and auditing standards; and

- assist NBAA in establishing its practice review program through advising on theterms of reference for the program, training NBAA staff to carry out reviews,and undertaking a specified number [to be determined] of reviews with NBAAstaff.

The expert would visit Tanzania three times over the life of the project in 1993, 1994 and 1995. Thefirst visit wold be for 4 weeks, and subsequent visits for 2 weeks. The expert will report to the Registrarof NBAA.Oualifications Required

- membership of a recognized professional accounting institute;

- an honors degree in accounting or related discipline;

- experience of setting accounting and auditing standards;

- 43 -

ANNEX IPage 9 of 9

experience of practice review programs;

training and writing skills;

experience of working in a developing country would be an advantage;

fluency in English.

Examination Expert

4. In 1991 NBAA introduced a new examination syllabus. NBAA requires assistance withreviewing the syllabus to ensure that standards are being maintained and where necessary improvementsare being made. The expert would assist NBAA to:

- review the role of the examinations committee in relation to the entireexamination process;

- review the examination scheme to ensure that the progression between levels inappropriate;

- assess the practical relevancy of the CPA qualification through a survey ofemployer needs;

- review the syllabus content to ensure that it reflects current developments inTanzania, and where applicable worldwide; and

- ensure that examination standards are being maintained through a review of theexamination papers and a sample of marked ,cripts.

The expert would visit Tanzania three times over the life of the project in 1993, 1994 and 1995. Thefirst visit would be for 4 weeks and subsequent visits for 2 weeks. The expert will report to the Registrarof NBAA.

Oualifications Required

- membership of a recognized professional accounting institute;

- an honors degree in accounting or related discipline;

- an in-dept knowledge of examination processes and practices;

- training and writing skills;

- experience of working in a developing country would be an advantage;

- fluency in English.

-44 ANNEX2ZPage 1 J 6

TANZANIA - FILMUP PROJECT

OFFMCE OF THE CONTROLLER AND AVDITOR GENERAL

A. Background

1. The Office of the Controller and Auditor General was set up under an Ordinance in 1961, and thepost of Controller and Auditor General (C&AG) is established in the constitution of the Republic ofTanzania, which requires the President to appoint a C&AG, and provides safeguards against arbitrarydismissal from office. The Ordinance directs that all government accounts must be submitted to theC&AG within four months of the end of the financial year, and must be audited by the C&AG withinnine months of the end of the financial year. The C&AG must submit an annual report on all accountsaudited to the President, who is required to lay the report before the National Assembly.

2. The Office of the Controller and Auditor General has an established staff of 563 (99 in the auditcadre and 464 in the examination cadre). It is however, understaffed, and there are only 65 auditors and320 examiners currently in post. In addition to the staff located in the Office of the C&AG in Dar-es-Salaam staff are also stationed in some of the larger ministries undertaking continuous audit, and in 20branches throughout Tanzania. A five year programme of assistance to improve the effectiveness andefficiency of government internal audit (the responsibility of the MOF) and government external auditis being financed by the UK Overseas Development Administration (ODA) ('Tanzania PublicAdministration Training and Institutional Development Programme (PATID): Government Audit'). Theprogram which has been running for one year involves bringing audit skills up-to-date and helping buildlocal capacity, with the aim of increasing the audit cadre to establishment. The project consist of twolong term advisers, two short term advisers, three study visits and attachments and 12 study fellowshipsand a programme of in-country training.

B. Assistance under FILMUP

3. The assistance provided under this Project will build upon and complement the work of the ODAby filling gaps not financed by the ODA project. In particular assistance for staff to complete their CPAexaminations at the Institute of Accountancy Arusha, and for the financing of 13 typewriters, nine PCsand six 4 wheel drive cais will be provided.

- 45 -

ANNEX 2Page 2 of 6

TANZANIA - FILMUP PROJECTOFFICE OF THE CONTROLLER AND AUDITOR GENERAL

TRAINING - USS'00_

TTVLB QUALmCATICM D1Ulls .BQWRZD PROY01 3D DUJATIO V3OMON can

_____________ ___________________ QUALI CATIOM Io rmE lT DAT3

& A.± ADCAI/ Had RO&W O9me CPA m U. IV uA 2 Ye 9 4

AWk- ADCA OW.1 Adis D.O. CPA mK .4IV IAA 2 Ye0 19 _ 4

A,diW ADCA 11_I Mijg.1 Al& Usk CPA IV MA I Ye £993 2

A.&W ADCA OMM.1 AsAtl Dii CPA m me IV LAA 2 Yen 1993 4

_.&M ADCA Rodl RqIc OIE CPA m VW IV MA 2 Ye £19 4

AM&" D Co. Oeol A o1 Ddi4 CPA K Se IV LAA 2 Yon 199$ 4

A MADI 0wa AU.a DW!w CPA M od IV U A lYen 199_ 4

& A&,L ADCA Hld MtiidA£ A.& Us CPA m e IV MA 2 Y. 1991 4

Avow M AD, ACA T.d AeS11og 0 CPA m e IV MAA 2 Yet 1993 4

Ae&M ADCA O| ei AWAI.g D41, CPA IV UA IYe 1991 2

Audkm NAD. CPA I £l MieaI A.* U.i CPA IV MAA I Y 1994 2

.A tUMAD _ 0_.1 A.i Dii. CPA m ee IV MA 2 Ye 1994 45L

A.dw MAD 01 A4o Di. CPA m ed IV MAA 2Ye £994 4.5

A.&M HMAD Oee.1 A.9$iat Di.6 CPA KU se? IV MA 2y Ye. 99 435

Avw MAD Oeal A.MM D34. CPA mV MAA a Ye 199$ 2

An*wm ADCA 0.1l Amfoc Dodo CPA KU ee IV MAA 2yo Y.. 94 .

Aursug ADCA O_ed AJt Di. CPA KU IV LMA 2I Y994 4Y$

Ae~ ADCA Oeml A4WW. Dii CPA m ed IV MA 2 Y 1994 i3

ADCA O_.l Atiq Die CPA m .4 IV MA 2 Ye 1994 4.3

ADCA O01 A Due CPA m ae IV MA 2 Ye 1991 43 |

ADCA Oee A,d1 D-. CPA m ud IV MA 2z Y994 43

A.&= HAD Oe.1 A.Atws Do" CPA m N4 IV MA 2 Ye £9f4 45

AeiL MAD. ADCA 0mi A.EMf D. CPA m .d IV MA 2 Y. 1993 $

HAD Oe, Aea Di. CPA m .4 IV LMA 2 Ye 19"£ _

-As DC= _ Oee. Atia Die CPA K ed IV MA 2 Y 3A&w MAD Oeeul Adb Den CPA K ee IV MA 2 Yen 1993 _Aw* ADCA Oe. ARq be CPA m .d IV MA lYI Y£999 9

AdilS ADMA OsW AbA Dift CPA m s IV MA lYe 993

A. ADCA O_w1 A di Dd, CPA K ee IV MA 2 Ye 3999 j 3

I/Advanced Diploma in Certified Accountancy

a/National Accountancy Diploma

-46 - 2Page 3 of 6

TInT QuLWCATI OU DVr REQUMED PBOPWZD DURATION VKOPOSD COnT 1QUALIIICATIOU £Trlvru PAIN

1-~~~~~~~~~~~~~~~~~~~~ OD u, £Y 991 1 2ABA I NABOCBV Osumi AnSim£ D)d£. ACAO RPM 3 Yea £99 27

ABA I NAEOCQ O_a1 AIMWS D,s ADCA S Yen 1993 &7

ARA I NABOCB O1nl A.q Dii. ACA IDM S Ye 199£ 2

Masmb.

ABA 1 NABOCB Om" A$q Di. ACA ID" S you 1993 2_7

ABA I NASOCS Diawi A%MM D. ADCA IWM S Yft 193 _ 7

ABA 1 NABOCB _£ A0_ Dii. ADCA IDM I Yon 199 2

.~~~~~~~~Mib

ARA I NABOCS 0_ -i A_ieq Ddw ADCA 1PM S Y 1993 27

AM I NABCB OOsui A.i Di. ADCA 3PM S Yen 1993 17

AM I NA_OCS O.m A.itlua DDli ADCA IFPM Y 1993 2.7AMA I KABOCS 0..., A.Wa~ Ddii ADCA IRA S Yfta £993 2.7

AR I tABOCI 0-al A*MDd ADCA lItM ITan 190 17

OS. ! aen£ en4 Smay toC&Ao _ mmi E SAU I 6Ib 1993

- ~ ___ __ __ _ __ jwm lDw.ae goth _Dm M _-p n,A 6 ICX 3.

.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3.

2/National Bookkeeping Certificate

°fTe Government of Tanzar;a is considering the introduction of an Advanced Diploma in GovernmentAccountancy end Audit. Funding for the introduction of this three year diploma is being sought from the UKODA. If the course is established those members of staff currently identified for the ADCA wil transfer to thiscourse.

- 47 -

ANNEX 2Page 4 of 6

TANZANIA - FILMUP PROJLECTOFFICE OF THlE CONTROLLER AND AUDITOR GENERAL

TRAING - USS'OOO

COURSES YEA YEA YEA YE,AR YE TOTRI R2 R3 4 RS AL

A. LONG TERM

CPA UandlV 2 2 4

CPA IU SW IV 2 2 4

CPA IV 2 2

CPA M BW IV 2 2 4

CPA m d IV 2 2 4

CPA m and IV 2 2 4

CPA M N~W IV2 2 4CPAMUadIV 2 2 4

CPA M NW IV 2 2 4CPA TVndI 2 2

CPA mIV 2 2

CPAIMNWIV 2 2.5 4.5

CPA IandIV 2 2.5 4.5

CPA M nd IV 2 2.5 4.5

CPA IV 2 2

CPA M Nd IV 2 2.5 4.5

CPAMazndTV 2 2.5 4.5

CPAIMIV 2 2.5 4.5

CPA m NW IV 2 2.5 4.5

CPA M and IV 2 2.5 4.5

CPA M Md IV 2 2.5 4.5

CPA M md IV 2 2.5 4. 5

CPA M II IV 2.5 2.5 5

CPA M nd IV 2.5 2.5 5

CPA mNW IV '.5 2.5 5

CPA M nd NV 2.5 25 5

CPA M id NIV 2.5 25 5

CPA M nd IV 2.5 2.5 5

ADCA .6 .6 .8 2

ADCA .9 .9 .9 2.7

- 48 -

ANNEX 2Page 5 of 6

COURSES' A YA Y YEAR Y TOTRI R2 R3 4 RS AL

ADCA .6 .6 .8 2

ADCA .6 .6 .8 2

ADCA .9 .9 .9 2.7

ADCA .6 .6 .8 2

ADCA .6 .6 .8 2

ADCA .9 .9 .9 2.7

ADCA .9 .9 .9 2.7

ADCA .9 .9 .9 2.7

ADCA .9 .9 .9 2.7

SUB TOTAL 30.4 46.4 51.9 17.5 146.2

D. SHORT TERM

managmcmt 3.5 3.5Dveciopmeat

Madiiii _3.5 _ 3.5

TOTAL 37.4 46.4 S19 17.5 153.2

- 49 -

ANNEX 2Page 6 ot 6

TANZANIA - FILMUP PROJECTOFFICE OF THE CONTROLLER AND AUDITOR GENERAL

COMPUTERS AND OFFICE EOUIPMENT - USS'OOO

_ _ = - = =T - = M T E=

OM-CE OF THE CONTROLLER AND AUDITOR GE,N,ERAL

-VEHICLES - USS'OOQ

I TR I TIR l IiA I TIa Iis4 TOTAL

QWMW U& T401 Q.¶iA - .J U.a.a -- .,d I TWA

4_11b.d 4 111.4 0- 4 __4-

*d. 4). 0 t 4 1~~~ *~~~S L06 IL4 , 10.a

E E,~~~~~~~. U,E

- 50 -

ANNEX3Page 1 of 15

THE INSTITUTE OF ACCOUNTANCY. ARUSHA

A. Backgound

1. Tanzania suffers from a poor education system, lacking the necessary basic facilities and teachingstaff. As a result of this students are not very successful in the examinations, particularly at theprofessional level. Examination pass rates are around 20%, and the throughput of qualified people isvery slow, leaving considerable gaps in the market place to be filled. It has been estimated that in orderto meet the immediate demand for accountants a further 500 CPAs are needed. The shortage ofaccountants is most acute in the public sector, with many vacancies remaining unfilled. IAA, whichopened in 1987, is a purpose built residential college preparing students for the Parts III and IV of theCPA examinations. Examination pass rates are better than the national average, with 46% of the studentspassing the final examinations at the May 1991 examination sitting.

B. Training

2. The main objective of this component is to improve the pass rates of students at IAA, byincreasing the technical capabilities of the teaching staff. Although the examination pass rates at IAA areover twice the national average there is still room for considerable improvement. To increase studentsperformance the lecturing staff at IAA need to be better informed in modem accounting and auditingtechniques. This sub component would provide for eight masters degree, and 40 short update coursesin financial accounting, cost and management accounting. On completion of this training all staff wouldbe able to teach more than one subject, and would be able to provide cover for absent colleagues whenrequired.

C. Technical Assistance

3. LAA wishes to introduce students to new techniques such as computing for which they have noskills. In addition there will be staff shortages when staff are abroad training. This sub componentwould provide an expert for one month to introduce staff to computing, and two experts in accountir,and auditing, and costing and quantitative techniques for 24 man months each to cover for staff when theyare receiving training abroad.

D. Lbrarv Books

4. IAA has a shortage of books. This sub component would provide IAA with financial support forbooks and journals.

E. Office Equioment and Computers

S. The equipment that IAA has is insufficient to meet the needs of a growing teaching establishment.In addition to some basic library equipment this sub component would provide IAA with six PCs and twoprinters for staff and student use, three photocopiers, two duplicating machines, two overhead projectors,three electric typewriters, a facsimile machine, a public address system for the lecture theater, a videocamera, recorder and monitor, cassette recorder and amplifier, two slide projectors and a slide makingmachine. The Project would also finance the cost of installation.

- 51 -

ANNEX 3Page 2 of 15

F. Transport

6. IAA is located seven kilometers from Arusha town. There is no public transport to the area, andIAA has to provide transport for its staff and students and their families to and from the campus. Thecurrent fleet of seven vehicles are very old, and need to be replaced. This sub component would providefor one 60 seater bus, one 30 seater bus and one car.

G. OMce Accommodation

7. The Government of Tanzania (GOT) financed the building of two hostel blocks, one classroombuilding, the first phase of the administration block, a lecture theater and housing for eighteen membersof staff. This sub component would provide the additional financing needed for completion of theadministration block, and building of staff housing, a student hostel block and a cafeteria. In additionthe component would provided for chairs for the lecture theater, and equipment for the cafeteria.

-52 - ANNX aPage 3 of 1S

TANZANIA - FILMUP PROJECTTHE INSTITUTE OF ACCOUNTANCY ARUSFfA

SHORT-TERM COURSES

TITLE QUALIFICATION COURSES DURATION

Principal BA, MA, PhD Management 1- 3 monthsInstitutional Development __ _

Burar B Com, MSe, CPA Computer Science 3 monthsResearch MethodologyFinancial Management

Principal Librarian Diploma Library Library Information 3 monthsScience Information Technology

Documentation Workshop

Consultantl/ ADCA, PODA, Training of Trainers 3 monthsMBA, CPA Financial Planning

Research Methodology

Consultant BA, MA Training of Trainers 3 monthsResearch MethodologyTeaching English as a ForeignLanguage ||

Consultant B Com, MBA Training of Trainers 3 monthsManagement Information SystemsResearch Methodology

Consultart BA, MBA Management Information Systems 3 monthsComputer ScienceResearch Methodology ||

Consultant ACCA Financial Management 3 monthsComputingResearch Methodology

Consultant ADCA, CFM, Computer Auditing 3 monthsCMA Resarh Methodology

Training of Trainers

Consultant PGDFM, ADTM Public Finance 3 monthsTaxationResearch Methodology

Consultant B Com, CPA Computing 3 monthsCurrent Issues in AccountingTraining of Trainen

Consultant ADCA, CPA Fnancial Planning and Control 3 monthsData ProcessingTraining of Trainer

Consulkant ADCA, MBA Statistical Analysis 3 monthsManagement Information SystemsResearch Methodology

Consultant M Com, PhD Training of Trainers 3 monthsCurrent Issues in Aocounting

I-AN,ANIlA - FILMUP IKU0.ICT

L/IAA lcctrrs are called consultat

- 53 -

ANNEX 3Page 4 of 1S

INSTITUTE OF ACCOUNTANCY ARUSHA

LONG-TERM TRAINING - US$'000

TITLE PRESENT REQUIRED DURATION START DATE COSTQUALIFICATIONS QUALIFICATIONS

Management Accounting Dip Ed, BA, MIPS, MSc Computer Science 1 Year 1993 27Consultant MBA

Financial Accounting B Com, CPA MSc Computer Science 1 Year 1994 27Consultant

Quantitative Techniques ADCA, CFM, MBA MSc Operations 1 Year 1994 27Assistant Consultant Research

Auditing Consultant ADCA, CFM, CMA MSc Accounting 1 Year 1994 27

Financial Management ACCA MBA Finance 2 Years 1993 45Consultant

Financial Accounting ADCA, CPA MSc Accounting 1 Year 1994 27Consultant

Assistant Consultant B Com MSc Finance 1 Year 1995 27

Assistant Consultant B Com MA Accounting 1 Year 1995 27

TOTAL 234

- 54 -ANNEX3Page 5 of 15

TANZANIA - FILMUP PROJECTTHE INSTITUTE OF ACCOUNTANCY ARUSHA

TECHNICAL ASSISTANCE - USS'000

TECHNICAL ASSISTANCE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL

A. L' 'G TERM

Substi Lecturer in Costing and 240 240 480Quantit, , e Techniques

Substitute Lecturer in Accounting and 240 240 480Auditing

B. SHORT TERM l

Architect/Engineer for building plans 80 80and bidding documents 4 m/m

Computer Training for Staff 20 20

Other TAneds as they arise 2 m/m pa 40 40 40 40 40 200

TOTAL 600 540 40 40 40 1260

iiX!ll-54

i a

a -Rw -

_ BM-B__T

'4 p

AX 2 M __ _ __ 10 g

r _ _ _ e _ _ _ _ _ [A

-56 - ANNEX3Page 7 of 15

TANZANIA FILMUP PROJECTINSTITrTE OF ACCOUNTANCY ARUS8A

TRAININCG USS'000

TRAINEES AND COURSES YEAR 1 YEAR 2 YEARS YEA 4 YEAR S TOTAL

A. LONG TERM _

MSc Cpmt sc. 27 27

MS. Cpwot S&k 27 27

MS& 0petkm Rcssdi 27 27

MS& Aooimng 27 27

MBA FImm 23 22 45

MS& Aeommt 27 27

MS. FbPua 27 27

MA A.oomuing ___ ___ ___ 234

SUB TOTAL 50 103 81=

B. SHORT TERM

14 Smlrwsuffforfc pwio& n excoeding 3 niIu 150 I IC 10 6D 410

Sqpad 9Staf Tmlng 11 it l l 11 it 55

TOTAL 211 214 I 71 It 699

- wm go op tP of ofIo. I I I II --o

* MI I III 1 1 1

at e.g I. I' I I "

- nS SI __ _ -

_ ' 01 ii on a a m

a. r. r~~~~~ ~~~~~~~~~~~~~~~~~~eV Is 'wON = = = = ___i

a e.g ft~~~~~~~~~~~~~~~~~~~~~~~~~I - I Of

M n " as _

a W. gm ri SA"

_ = = = = = = = = = = = = = = - ~~~ ~ ~~~~~~~~~~n _ __"- - - - - - - - - - - a~~~~~~~~~~~~~~~~~~~~~~ Wmbpp

5 I P ft S ~ ~~~~~~~~~~~~~~~~~~~~~~~~ -Sw

St 0 I Si ~~~~~~~~~~~~~~~~~~~~~~~~~~~I-A

5. 0 *

PU PU PU PU PU~~~~~~~~~~o Po

s II ggjpyjswu a ugga

ST Jo 9 vc__ _x __

- 58 - ANNX 3Page 9 of 15

TANZANIA - FILMUP PROJECTTHE INSTITUTE OF ACCOUNTANCY ARUSHA

VEHICLES

fl~~~ TER I TER" a TAR a To"R 4 TEAR $ TOTAL

Qo.*k Va T4 Q..at U* TM& Quw Uo T.W Q.- U~ 71d 0 .. 1*Ud T1w Omgfp a T*M-~ ~ ~~C C, ." . = _.!.. .

*~~3w 1 40 40 I 40 40 to

3mu. I I M ISI s J 1O0

|__n I CIY ) U I I) U | S<U I |U|_

*Al= I I X C l l | | - - -_ l l l l. l l l

Projected Cost Comparisons for Civil Works(All areas are gross M2 . Other figures are T.Sx1OOO)

NBAA Brief Cost Proiection Design Cost Projection

1. Office Building 886m2 @ 140 = 124,000 900m2 @ 140 = 126,0002. Other facilities

New Construction 1448n2 @ 140 = 202,720 138Dm2 @ 140 = 193,200Renovation 379m2 @ 35 = 13,265 460m2 @ 35 = 16,100

3. Housing 23x 16m2 @ 130= 346.840 24x121m2 @ 130 = 377.520Total NBAA 538Dm2 686,713 712,820

IAA1. Admin. Building

New Building 1481m2 @ 120 = 177,720 1256m2 x 120 = 150,720Renovation 541m2 @ 30 = 16230 614m2 x 30 = 18.420Sub-totals 2022m2 193,950 1870m2 169,140

2. Boading FacilitiesHousing 569m2 @ 120 = 68,234 960m2 x 120 = 115,200Cafeteria 91 Im2 @ 80 = 72,882 900M2 x 80 = 72,000Recreation 23m2 @ 120 = 2,754 50m2 x 120 = 6,000Sanitary 518m2 @ 120 = 62208 178m2 x 120 = 21.360Sub-totals 2021m2 206,078 2088m2 214,560

3. Staff HousingBungalows 12 x 146m2 x 100 = 174.960 12x126.25m2 xIO0 = 151,500Total IAA 574,988 535,200

PROJECT TOTALS 1,261,700 1,248,020

- 60 -

ANNEX 3Page 11 of 15

4. NeAreas (see attached drawings)

No. Space BriefArea Design Area

1 Board Room 24m2 55m2

2 Principal's Office 24 283 Secretary 16 16 *

4 Waiting - 145 Public Relation 17 176 Secretary - 147 Director of Studies 17 178 Secretary - 149 Administrative Director 17 1710 Secretary 12 1411 Financial Director 17 1712 Secretary 12 1413 Accountant 17 1714 Cashier 12 1415 Facility Manager 12 1716 Procurement 12 1417 Staff Officers (13 @ 12) 156 13@14)182 *17m2

18 Staff Common Room - 1819 Conference room - 1820 Maintenance Office 12 1421 Clinic

a. Waitingb. Examc. Medical Assistantd. Nursese. Medical Storef. Rest Room/W.C.

22 Staff Room (5) 420 (2@16) 150(4435) 140

23 Reference Room 42 28Reference Room Store 42

24 Library 140 15425 Library Offices (3@12) 36 4826 Library Reading Room 140 14027 Library Periodicals - 28 8

28 Library Workshop - 3029 Dean of Students - 1730 Student Affairs Office - 17 *

- 61 - ANNEX3Page 12 of IS

31 Computer Room - 34 *32 Photocopy 90 1433 Duplicating - 1434 Storage 101 95 M

35 Men W.C. 45 32 *16m2

36 Women W.C 45 40 *20m 237 Tea Room - 8 *4m2

38 Cleaner Store - 8 4m2

39 Registry _ 14

Total net area 1498m2 1620m2Total gross area 2022m2 1866m2

These functions are in renovated spaces. Total renovated space is 534m2

- 62 - ANNX3Page 13 of 15

4. Boarding Facilities (Dormitory & Cafeteria Complex)

Schdule of Spaces in BriefQ

1. DoubleBedrooms 39@ 11 m2 421 m2 569 m2

2. Cafeteria 675 9113. Recreation 17 234. Sanitary 8 @ 48 m2 384 518

Totals: 1497 m 2 2021 m2

Recommended Schedule of Soaces

1. DoubleBedrooms 40 @ 20 m2 800 n2 960 m2

Bathrooms 8 @ 16 m2 128 128

2. Cafeteria(incl. serving area) 500 700 *Kitchen 160 200Recreation 50 50Toilets 50 50

1688 m2 2088 m2

Includes Arcade at 200 m2

- 63 -

ANNEX 3Page 14 of 15

TANZANIAFILMUP PROJECT

THE INSTITUTE OF ACCOUNTANCY ARUSHA

TERMS OF REFERENCE

Background_

I1. IAA, which opened in 1987, is a purpose built residential college preparing students for theParts IH and IV of the CPA examinations. Although the pass rates at IAA are better than the nationalaverage, (46% of the students passing the final examinations at the May 1991 examination sitting) thereis still room for considerable improvement. Under FILMUP funding will be provided for staff toundertake master degree courses overseas. While staff are away on training there will be staff shortagesand two experts, one for accounting and auditing, and one for management accounting and quantitativetechniques are needed to provide cover. As instructed by the Principal the experts will:

- teach accounting and auditing/management accounting and quantitativetechniques courses;

- set and mark class assignments;

- set and mark examination papers;

- provide short update course for staff;

- provide guidance for staff on new teaching methods; and

- produce a written monthly report.

Qupalifications Required

a degree in accounting, business studies or related discipline;

membership of a recognized professional accounting body;

a minimum of five years experienc'b of teaching accounting andauditing/management accounting and ',uantitative techniques at degreelevel to business studies/accountin . students;

thorough conversance with PCs, the MS-DOS operating system,spreadsheet programming and word processing;

excellent writing skills;

experience of working in a developing country would an advantage;

fluency in English.

- 64 -

ANNEX3Page 15 of 1S

the experts will report to the Principal, with copies of all communications of the Director of Studies. Theassignments will be for two years.

Computer Expert

2. IAA wishes to expand its curriculum to introduce computing courses, so that its accountingstudents are better prepared to meet the increasing demands of the Tanzania workplace. Under FILMUPprovision has been made for two members of staff to obtain masters degrees in computing. The otherstaff have no computer expertise, and need to be exposed to the basics of computing. The expert will:

design and run training courses to familiarize all teaching staff in the useof basic wordproces ing, spreadsheets and accounting packages.

)ualifications Required

- a degree in computer studies;

- thorough conversance with PCs the MS-DOS operating system,spreadsheet programming and word processing;

- a minimum of five years experience of teaching computing to businessstudies/accounting students;

- excellent writing skills;

- experience of working in a developing country would be an advantage;

- fluency in English.

The Expert will report to the Principal of IAA. The assignment will be for one month.

- 65 - ANNEX 4Page 1 of 6

THE INSTYTDTE OF FINANCE MANAGEMENT

A. Background

1. IFM was established in 1972 to look after the educational needs of the banking and insurance sectorand was later expanded to cover other finance related disciplines. IFM is a self-financing parastatal.This academic year the Institute has 788 full-time and over 600 part-time students. IFM offers three yearadvanced diploma courses in accountancy, banking, financial management, insurance, social securityadministration and tax management, a one year post graduate diploma in accountancy, financialmanagement and tax management, and a number of short courses. Accountancy courses account for over50% of the full-time students and all of the part-time students, and the number of students interested inaccountancy is rising every year. The staff employed by !FM are very committed, but they are few innumber, and many are not sufficiently qualified to be able to effectively teach these advanced courses.

B. Training

2. IFM wishes to expand its curriculum to introduce computing courses and update its other courses,so that it students are better prepared to meet the increasing demands of the Tanzania workplace. Thissub component would provide IFM with 15 master degree courses in accountancy, banking/insurance.taxation, financial management and business administration/computing, one bachelor degree in libraryscience and two diplomas in college administration. In addition the sub component would provide for25 short update courses in accountancy, banking, financial management, insurance/social security,taxation management and computing.

C. Technical Assistance

3. There will be staff shortages when staff are abroad training. This sui) component would providefor an expert in accounting and auditing for two years to cover for staff when they are abroad. Inaddition this sub component will provide for a an expert in computing for one year to help establish thecomputer facility, prepare computer courses for accounting students md train staff in the use of thecomputer.

D. Library Books

4. IFM is very short of books, and most of its titles are out-of-date. This sub component wouldprovide EFM with financial support for books and journals.

E. OMie Equipment and Comnputers

5. As mentioned above there is a great need for accountants to be able to use computers. In additionthere are no diploma courses in computing in Tanzania. IFM wishes to introduce computer courses notonly for accountants, but also for students who wish to specialize in computing. This sub componentwould provide IFM with a computer lab consisting of a mini computer networked to 20 Pcs withappropriate software, five heavy duty printers, simple air conditioning and wiring. IFM wishes to updateits teaching techniques and make use of visual and other training aids. It also wishes to produce handouts

-6- AX4Page 2 of 6

and other materials for students. This sub component would provide IFM with the necessary trainingaids, three PCs and printers for office management, and three photocopiers.

F. Transport

6. IFM has five vehicles which it uses for staff transport to and from home. The Institute's 1979 bushas become uneconomic to run. In addition the lecturing staff have no vehicles to provide training orto undertake research or consultancy in the regions. This component would provide IFM with two staffmini buses, four 4 wheel drive cars for staff use, and two saloon cars for the experts.

G. Ofrice Accomodation

7. IFM through sponsorship by the Tanzania banking and insurance community has been able to builda six storey building comprising hostel accommodation and six classrooms. The Institute's sponsors whohad pledged financial support to furnish the classrooms are now unable to provide the funding. Theclassrooms are needed if IFM is to cope with the ever increasing demand for its courses. As IFM hadassumed that financing would be provided for furnishing it did not make budgetary provision forfurnishing, and is unable to meet the costs out of its budget. This sub component would provide IFMwith 206 desks and chairs, 6 writing boards, 6 tables and 18 blinds. This sub component would also fundthe replacement of the central cooling system in the lecture thdeater, library and function room. Thissystem is very old and the cost of repairs is substantial. In particular the high temperatures in Decemberto July are causing problems in the library where the books are beginning to deteriorate.

iF I l'[if -T--- 0i

r TiE~~~~~~ V Q VV __ _ ___

S VV V V~~~~~~~~~~~~V ~

L1L iR

~~~ z ~o v

- 69 - ANNEX 4Page 5 of 6

INSTITUTE OF FINANCE MANAGEMENTTERMS OF REFERENCE FOR

COMPUTER EXPERTr AND A LECTURER IN ACCOUNTANCY

Background

1. IFM was established in 1972 to look after the educational needs of the banking and insurance sectorand was later expanded to cover finance related disciplines. IFM is a self-financing parastatal. Thisacademic year in Institute has 788 full-time and over 600 part-time students. IFM offers three yearsadvanced diploma courses in accountancy, banking, financial management, insurance, social securityadministration and tax management, a one year post graduate diploma in accountancy, financialmanagement and tax management, and a number of short courses. Accountancy courses account for over50% of the full-time students and all of the part-time students, and the number of students interested inaccountancy is increasing every year.

Computer Expert

2. IFM wishes to expand its curriculum to introduce computing courses, so that its accounting studentsare better prepared to meet the increasing demands of the Tanzania workplace. The expert will:

- assist in the design and running of computer courses of accountancy students;

- install the computers and check that they are funct; ir.g properly;

- design and run training courses for familiarize all teaching staff in the use of basicwordprocessing, spreadsheets and accounting packages;

- provide on-the-job training and support to the designated counterpart to enable him/herto take over responsibility for computer training when the expert has departed; and

- produce a written monthly report.

Oualifications Required

- a degree in computer studies;

- thorough conversance with PCs, the MS-DOS operating system, spreadsheetprogramming and word processing;

- a minimum of five years experience of teaching computing at degree level to businessstudies/accounting students;

- excellent writing skills;

- experience of working in a developing country would be an advantage;

- fluency in English.

-70 - AN 4NEX4Page 6 of 6

The Expert will report to the Principal of IFM, with copies of all communications to the Director ofStudies and the designated counterpart. The assigmnent will be for one year.

Accounting and Auditing Expert

3. Under the project funding will be provided for staff to undertake master degree courses overseas.While staff are on training there will be staff shortages and an expert is needed to provide cover whenstaff are away. As instructed by the Director of Studies the Expert will:

- teach accounting and auditing courses;

- set and mark class assignments;

- set and mark examination papers;

- review the curriculum, and assist with updating courses;

- provide short update course for staff in new accounting techniques;

- provide guidance to staff on modem teaching and examining methods; and

- produce a written monthly report.

Oualifications Reouired

- a degree in accounting, business studies or related discipline;

- membership of a recognized professional accounting body;

- a minimum of five years experience of teaching accounting and auditing at degree levelto business studies/accounting students;

- thorough conversance with PCs, the MS-DOS operating system, spreadsheetprogramming and word processing;

- excellent writing skills;

- experience of working in a developing country would be an advantage;

- fluency in English.

The Expert will report to the Principal, with copies of all communications to the Director of Studies.The assignment will be for two years.

- 71 -

ANNEX Page I of 4

TANZANA - FILMUP PROJECTATTORNEY GENERAL'S DEPARTMENT (CIVIL AND INTERNATIONAL DWISIONM

TRAINING - USS'OOO

COURSE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR S TOTAL

LONG TERM ___

LLM 30 30

Advanced Diploma in I1 18International Law

SUB TOTAL 48

SHORT TERM

12 Senior Staff for 67 46 18 131periods not exceeding 3months

TOTAL 115 46 18 179

TANZANIA -FILMUP PROJECTATTORNEY GENFRAL'S DEPARTMIENT (CHFEF PARLLAMFENTARY DRAFISMAN)

TRAIN1NCG USS'OOO

COURSIES YEAR I YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL

LONG TERM ___

Diploma in Legislative 28.5 28.5Drafting _

Diploma in Lqislative 28.5 28.5Drafbing

LLM 30.5 30.5

ILM ;j.5 29 30.5

LLM 30.5 30.5

SUB TOTAL 28.5 59 61 29

SHORT TERM

8 Senior Staff for periods 35.5 8 62.5 135not exceeding 3 months

TOTAL 64 67 123.5 283.5

- 72 -

Page 2 of 4

TANZANUA - FILMUP PROJERCTADMINSTRATOR GENERAL'S OFFICR

TRAINING - USS'OOO

COURSES YEAR YEAR YEAR YEAR YEAR TOTAL1 2 3 4 S

LONG TERM

I.id _ 5

_UB TOTAL

SNORT TERM

11 Senior Staff for 21.1 42.4 14.5 78periods not exceeding 3monthr.

Seminan for District 16 16Registrs (Total of 57

TOTAL 26.1 58.4 14.5 99

- 73 -

ANNEXfPage 3 of 4

TANZANIA . FILMUP PRO.ECTLAW REFORM COMMISSION

TRAINNG - US$SOO

COURSES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR S TOTAL

SHORT TERM _

9 Senior Staff for periodis not 70 48 118exceeding 3 months

5 Senior Support Staff for 8.7 26 7 41.7computer/informatiootechnologycourses

TOTAL 78.7 74 7 159.7

TANZANIA - FILMUP PROJECTUDICIARY

TRAEIING - USs'oo

COURSES YEAR YEAR YEAR3 YEAR YEAR TOTAI 2 4 S L

SHORT TERM

Seminar for 37 High Court 41 41 82Judges

Seminasn for 137 Resident 55 55 110Magiatnte.

Semin for 184 Disrict 50 50 50 150Magistates

7 Senior Staff for periods not 64 60 124exceeding 3 toonths

Local Seminas for Senior 45 45 45 135Regisy Assisnts

TOTAL 255 251 95 601

Added at Negotiations:One 4-wheel drive vehicle 30 30

- 74 -

Page d of 4

TANZANIA - FMMUP PROJECTLAW REFORM CONMMISON

TECHNICAL AS9STANCE

TECHNnCAL ASSISTANCE YEAR I YEAR 2 YEAR 3 YEAR 4 YEAR | TOTAL

SHORT TERM

Expert to examine systen of 50 50opemtion of Coission

TOTAL 50 50

TANZANIA - FM4UP PROJECTA^TTORNEY GENERAL'S DEPARTMENT

TECHNICAL ASSSTANCE - US'OOO

TECENICAL ASSISTANCE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEA S TOTAL

SHORT TERM _ T 1___ T1

Expert to undertake revision 180 180of Laws of Tanzanii

Expert to undertake revision 200 200of commercial and relatedlawsL_380__ _ _______

TOTAL 38038

- 75 -

ANNEX 6Page 1 of 16

UNITED REPUBLIC OF TANZANIASTRATEGY FOR THE LEGAL SECTOR

TERMS OF REFERENCE

Introduction

1. The Governmeuit of Tanzania (GOT) has for the last several years been engaged in a farreaching economic reform program, focussing on broadening the role of market forces in guidlingeconomic decisions and improving or strengthening major policy instruments and institutions thatwould support markets and private economic activity. These reforms affect all sectors of the economyand involve, inter alia, reforms in the foreign exchange regime, the trade policy, the agriculturalsector, the financial sector and the public sector. One of the results of the program has been theneed to encourage the private sector to play a greater role in the economy. It has becomeincreasingly clear that one of the areas of weaknesses has been the legal sector which includes, interalia, the judiciary, the various arms of the govemment that provide legal services, private practitionersand the Law Faculty at the University of Dar es Salaam. All these institutions and agencies havesuffered from neglect over the last decade and are ill-equipped to meet the challenges of the evolvingmarket economy. In addition, the legal and reguiatory framework for most commercial activities areinadequate to deal with modern business transactions.

2. In this context, GOT has sought assistance from the World Bank and other donors to remedythe situation, enhance capacity within the sector at all levels and provide a conducive legal andregulatory framework. GOT has sought some immediate and urgently needed assistance to thesector, however it intends to undertake a comprehensive and thorough review of the sector with aview to developing a strategy for the sector, for the medium to long term.

3. A Task Force (TF) has been established to oversee the work that will go into preparing thestrategy and shall present to GOT, a strategy for the sector. The TF is chaired by an eminentT.-nzaman lawyer and includes one representative each from the judiciary, private practitioners, LawFaculty, Attorney-General's Office and the Law Reform Commission. There shall be the secretaryto the TF assisted by one full-time researcher. The task of the TF is to coordinate and supervise thework various consultants and experts who will be examining the different aspects of the legal sector.It is expected that the work of the various consulkants will be completed within eight months, atwhich time the TF shall present the strategy to GOT and assist it in organizing a conference todiscuss it, with the World Bank and donors.

ObJectiwes

4. The overall objectives of tnese terms of reference is to examine the various institutions andactivities of the legal sector in mainland Tanzania and Zanzibar and to develop a strategy andimplementation plan to make its operations more efficient, and with 'he intention of recommendingchanges that will be more consistent with the evolving economic and policy environment.

S. For the purpose of the development of the strategy, the legal sector is defined in the widestpossible sense. It includes legal institutions and activities both on the mainland and in Zanzibar. Thereview of the sector wil! involve an examination of, inter alia, the following:

(i) legal education, both professional and paralegal, pre - as well as post - qualification;

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(ii) the administration of justice, including qualification of magistrates and judges, thestructure and administrative arrangements of the court systems and organization andadequacy of support systems;

(iii) administrative law procedures and alternative dispute settlement mechanisms;

(iv) the legal profession, its qualification requirements, its organization, management, roleof the Law Society, etc.;

(v) the role and organization of the Attorney-General's office, and other governmentlegal and quasi-legal offices;

(vi) the Law Reform Commission;

(vii) the Permanent Commission of Enquiry (the Ombudsman);

(viii) the role of the various registries - companies, intellectual property, births, deaths,marriages;

(ix) the Tanzania Legal Corporation;

(x) dissemination of legal information through the publication and availability of theGovernment Gazette, legislation, law reports, as well as legal education for thegeneral public;

(xi) role and organization of law libraries at the university, in the judiciary and at thevarious government agencies; and

(xii) development of a legal information system and database.

Daclkround Information

The Lepl Svstem:

6. The legal system in Tanzania is based on the common law, with customary and islamic lawinfluences, especially in the areas of personal and property laws. The body of laws thus includeslegislation from the colonial era, legislation enacted since independence as well as various customaryand islamic rules. In Zanzibar the islamic influences are stronger, with the existence of Khadis' courtsto try cases according to islamic law. Following the Arusha Declaration in 1967, and the bias towardsthe public sector as the provider of goods and services there has been very little development of theprivate sector and the laws and procedures that would inevitably follow. With the bias against theprivate sector commercial and corporate laws have been neglected.

The Igal Profession:

7. Tanzania has a long record of training of lawyers. The Law Faculty at the University of Dares Salaam (UDS) is the only institution in Tanzania offering formal legal education at the degreeleveL Primary Court Magistrates undertake a two year certificate course at the Institute ofDevelopment Management, at Mzumbe.

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The Judiciari.

8. Tanzania has a long and honorable record of the independence of the judiciary and respectof the rule of law. The judicial structure on the mainland, consists of a system of 1023 primary courts,86 district courts, 20 regional courts, the High Court that sits in Dar es Salaam and eleventh zonalcenters and the Court of Appeal. In Zanzibar there is a separate court system, with a structuresimilar to that described above, there is however a dearth of trained legal manpower at all levels.Magistrates at the primary court level are non lawyers who are holders of a nine month Certificatein Law course run by the judiciary at the Institute of Development Management (IDM) Mzumbe.

Ministry of Justice:

9. The Attorney General is the legal adviser to the government. The office is divided into severaldivisions, namely the Civil and International Department (CID), the Legislative Department (LD),the Directorate of Public Prosecution (DPP) and the Administrator-General's Department (AGD);(i) the CID advises the government on all civil and international matters, including the defence ofsuits brought against the government, representing the government in all negotiations with local aswell as international interests as well as other matters on which their advise is sought; (ii) the LDcomprises the office of the Chief Parliamentary Draftsman who is responsible for the drafting of alllegislation in Tanzania. In addition the office is entrusted with the task of coming out with regularrevised Laws of Tanzania as well as annual supplements. There has not been a revision of the Lawsof Tanzania since 1965. This makes it impossible for practitioners and judges alike to know at anypoint in time what the law on any give subject is; (iii) the AGD is responsible for the registration ofbirths, marriages and deaths; (iv) the DPP is in charge of all prosecutions at the senior courts namelythe High Court and regional courts.

Law Reform Commission:

10. The Law Reform Commission (LRC), which was established pursuant to the Law ReformCommission of Tanzania Act, No. 3 Of 1980, is charged with the functions of taking and keepingunder review all the laws of Tanzania with a view to its systematic development and reform. Thefunctions are set out in more detail in Section 4(2) of the Act, namely to:

(i) review any law or branch of the law and propose measures necessary for --

(A) bringing that law or branch of the law into accord with current circumstancesof Tanzania,

(B) eliminating aiiomalies or other defects in the law, repealing obsolete orunnecessary laws and reducing the number of separate enactments, and

(C) the proper codification and simplification of that law or branch of law;

(ii) consider and advise on p;oposals for the adoption of new or more effective methodsfor the administration of the law and the dispensation of justice;

(iii) from time to time, prepare and submit to the Attorney-General programs for theexamination of different branches of law with a view to reforming those laws,including recommendations as to the agency, whether the commission or another

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ANNEX 6Page 4 of 16

body, by which any such examination should be carried out;

(iv) at the request of the Attorney-General, prepare comprehensive programs for theconsolidation and revision of laws, and undertake the preparation of any draft billspursuant to any such program approved by the Attorney-General; and

(v) at the instance of the Attorney-General provide advice and assistance to any ministryor department or any public authority or institution by undertaking the examinationof any particular branch of the law and making recommendations for reform so Psto bring it into accord with current circumstances.

Assinment lmglementation:

11. The work on the various aspects of the legal sector are expected to be undertakenconcurrently by groups of consultants and specialists (both local and foreign) working on the variouscomponents. With regard to each component, an examination will be undertaken of the present stateof the institutions or activities concerned, and proposals for the needed changes the detailed TORsfor the various areas mentioned above will be attached as appendixes to these TORs. In each of theareas, persons in the particular area, with experience both of the Tanzanian situation anddevelopments in other countries, will work together to develop the necessary strategy for thatcomponent.

12. In order for the work on developing a strategy and implementation programs to be effective,the work of the consultants and specialists is to be operationally oriented, with the reporting processand types of reports designed to facilitate the work of the TF in presenting to GOT an actionoriented strategy for the sector. This will require frequent interaction with the TF which will managethe work of the consultants and review their reports (in which alternative approaches,recommendations and the implications would be set on). Thereafter, the consultants would producea series of working papers which would form the basis for the donors meeting to be organized byGOT to develop the strategy with the World Bank and other interested Donors.

13. In the early stage of the consultancies, each zonsultant will prepare and present to the TF,a detailed work program proposal for each assignment, outlining the approach to the work. Theproposal will outline any decision making that would be needed to implement the findings of thereview. Once submitted, the proposal will be evaluated by the TF and adjusted as deemed necessary.Under their work program, the various consultants will be expected to report their findings andrecommendations according to a schedule to be set by the TF. The work program for each of theparts to the terms of reference for the development of a strategy for the legal sector are set outbelow.

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Appendix A.1

(I) Legal Education

Scope of the Assignment:

In considering the status of legal education in Tanzania, the consultant will consider and examinethe following aspects:

(a) The purpose and objectives of legal education in Tanzania:

(b) Given (a) above, the necessary qualifications required prie to beginning a lawdegree;

(c) The present state and quality of legal educatio at the University, what should bethe quality and types of courses taught;

(d) The skill mix needed to achieve this, examining critically what exists;

(e) Post-graduate education and requirements to practice as a professional;

(f) Training for paralegals - requirements needed.

(g) Examine the modalities for the establishment and operation of an institute to caterfor the training needs of the judiciary and the legal profession.

The consultant will determine, what the LLB degree should consist of as a minimum. Theconsultant will examine critically the existing situation and make recommendations to improve legaleducation and make it more relevant to present conditions, and more responsive to changingcircumstances.

The consultant will also examine what is required of lawyers after qualification and shall liaisewith the consultants examining the legal profession and the administration of justice [as far as thequalification of magistrates and judges].

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ANNEX 6Page 6 of 16

Appendix A.2

II. The Leaal Profession

ScoRe of the Assignment:

In examining the legal profession, the consultant will examine and consider the followingmatters:

(a) The organization of the legal profession, internal mechanisms for control anddiscipline of its members, legal ethics, quality control, governance, professionalstandards;

(b) Organization of continuing legal education, as well as minirrum requirements forentry into the profession;.

(c) Role and input into the administration of justice, law reform, etc.

The consultant shall, inter alia, examine critically the present status of the Law Society ofTanzania as against the role that such an or' nization should play in the Tanzanian context.Recommendations should include how best organize the profession to enable it to managepractitioners in the evolution to a market economy, examining critically the role of lawyers in the typeof economy, and what is needed to enable them to fulfil this taslk

The consultants should make recommendations on how best to organize the Law Society, theskills needed to do so, and devise an implementation program to achieve this.

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Agpendix A3

HI. Administration of Justice

Scope of the Assignment:

In examining the administration of justice in Tanzania, the consultants will, inter alia, examinethe following:

(a) Organization of court system in Tanzania examining critically its structure andadministration, looking at system or lack thereof;

(b) qualification and needed skills of magistrates, judges, registry staff and the paralegals- requirements for continuing education, in service training, upgrading of skills, etc;

(c) effects of justice system on citizens - both with regard to civil and criminal law;

(d) examination of other actors impacting on justice system --- police, prisons, etc.

The consultants will examine these various aspects critically, making radical recommendationsto revamp the system of justice in Tanzania to enable it to perform, looking for the causes of delayin cases, (justice delayed is justice denied) and devising practical suggestions for overcoming theseproblems. The recommendations should form an action program with proposals to be implementedover the short, medium and long-term.

The consultants should also examine and make recommendations on the resources andfacilities required to enable the judiciary to perform, looking at inter alia recommendation formagistrates, judges, etc.

It is crucial that the review be action oriented. The result will be the development of anaction program to be implemented over a period. The various components of the review should becritical as well as constructive, taking a fresh look at institutions and organizations, with a view tocoming up with an efficient, effective and productive sector, which responds positively to the demandsof the various interests that it serves. The end result of this will be a detailed implementationprogram which will be discussed by the Government, the World Bank and other donors, at aconference.

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ANNX 6Page 8 of 16

Agnendix A.4

IV. Administrative Law Procedures/Alternative Disgute Settlement Mechanisms

Scope of the Assignment:

In considering the existing administrative law procedures and alternative dispute settlementmechanisms, the consultant should examine:

(a) Fxisting administrative law provisions and arrangements;

(b) administrative law -quasi-judicial institutions and the personnel and skills needed toefficiently run these institutions;

(c) examination of alternative dispute settlement mechanisms now existing in Tanzania,and developments in other countries which could be relevant to the situation inTanzania.

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Auendlx A.5

V. Attornev-Generars Office and other Government Legal Offiees

Scope of Assfrment

In eamining the role of the Attorney-General's office and other government legal offices,the consultants should examine the following:

(a) the role of the A-G as specified in the constitution;

(b) whether the organization and skills mix of the office enables the A-G to fulfill thisrole and provide the services required of it.

The consultants will examine these aspects critically, making recommendations as needed ona suitable and streamlined organization for the office. The review should also look at theresources and facilities necessary to enable the office to perform this task.

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Appendix A.6

VI. Law Reform Commission (LRC)

Scoge of Asslgnment

In examining the role and functions of the LRC, the consultants should examine thefollowing:

(a) the functions of the LRC as defined in the Law Reform Commission of TanzaniaAct, 1980, which inter alia includes taking and keeping under review all the laws ofTanzania with a view to its development and reform;

(b) re-examine whether the mechanisms set out in the Act for doing so are adequate orneed to be adjusted to the changing circumstances;

(c) examine the system under which LRC operates, especially with regard to legalresearch methods;

(d) propose improvements aimed, inter alia, at raising LRC's research capacity;

(e) in line with the changes suggested above, examine the organization of LRC to seehow it can best fulfill its mandate, as well as its relationship with the Attorney-General, the Law Faculty of the University of Dar es Salaam etc.

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ANNEX 6Page 11 of 16

Appendix. 7

ViI. Permanent Commission of Enquiin (Ombudsman)

Scopg of Assiament

In examining the role of the Ombudsman, the consultants should examine the following:

(a) the role of the ombudsman as provided for in the constitution.

(b) the present organization and resources of the ombudsman.

(c) whether the office is presently fulfilling its mandate, and if not what should be doneto enable it to do so.

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JUlU 6Page 12 of 16

Appendix A.

VII. Registries

Scoge of AssigmeLt

(a) The consultants should examine the various Registries in Government, namely, theRegistry of companies, business names, industrial licenses, trade marks, patents,copyrights, the Administrator-General (for births, deaths, marriages, etc.).

(b) Examine the requirements of these tegistries to enable them to function efEcientlyand provide the necessary information and services to the public in a timely manner.

(c) Identify security and organizational problems that affect or may affect the integrityof information kept and recommend solutions.

(d) Prepare a computerization strategy, including detailed specifications of userrequirements, defining the system's main functions, inputs, information to bemaintained, outputs, controls and security.

(e) Develop or acquire and amend software selected.

(f) Identify staff training needs, data inputting requirements and document procedures.

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An6Page 13 of 16

Agpendix A. 9

IXL Tanzania Legal Corporation

ScoNe of Assiggment

The Tanzania Legal Corporation (TLC) is a statutory corporation established pursuant to theTanzania Legal Corporation Act, No.- of _. to provide legal services to the parastatalsector.The consultant shall examine TLC's role in the present economic climate.

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ANNEX 6Page 14 of 16

Appendix A. 10

X Dissemination of Legal Information (Legal Literacl)

Scope of Assignment

Examine the requirements for making the general public aware of their legal rights andresponsibilities, including:

(a) an assessment of the impact, so far, of the mass media programs introduced by theJudiciary, in creating the necessary awareness among members of the publicconcerning their legal rights;

(b) an examination and recommendations on methods and modalities to be used indirect mass literacy classes on legal rights;

(c) an examination of modalities for extending legal services (legal aid) to those unableto meet the cost of legal services.

Examine methods to be used in achieving this and draw up a program for implementationover the short- to medium-term.

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ANMIEX 6Page 15 of 16

Aggendix A. 11

XM. Law Libraries

Scoge of Assienment

Building on work already undertaken under the Financial and Legal Management UpgradingProject, the consultant will:

(a) examine critically law library requirements of the Ministry of Justice, judiciary, LawReform Commission, University of Dar es Salaam and the various other users ofsuch services;

(b) examine the aims and objectives of the libraries, their structure, management andorganization, finance and budget, users and their needs, various services required,manpower and staffing, and the information resources needed.

(c) examine space requirements, layout, furniture and equipments requirements;

(d) provide a vision for the future of the library services, examining the feasibility ofcentralized services, networking and other linkages;

(e) identify training needs and requirements for the staffing of the libraries;

(f) with regard to acquisitions, design a development acquisition policy to act as a guidefor future acquisitions.

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ANll 6Page 16 of 16

ARpendlx A.12

XII. Leal Database/Information System

Scope of Assignment

The assignment is to design an information system for each of these agencies which provideseasy and efficient access to storage, management and retrieval of information as well as todesign a flexible, efficient and cost effective system which can easily be expanded as neededin the future. In addition there should be identified the soft and hardware requirements forthe setting and running of such a system.The agencies to be covered are the following:

The Attorney-General's OfficeThe JudiciaryLaw Reform CommissionRegistrar of Companies

The consultants will be required to work with the various agencies to carry out the followingtasks:

(a) Define and specify the information needs and reporting requirements at the variousmanagerial and operational levels within the agencies. These requirements shouldrelate specifically to the majc. database and analytical applications to be developed,while recognizing future developments of a computerized law retrieval system.Adverse effects if any and any potential problems in computerizing these systemsshould be identified.

(b) In conjunction with the agencies concerned specify the output formats for themanagement reporting and control of a law retrieval system, together withprocedures for reviewing and acting on them.

(c) Prepare a technical specification for a total hardware and software solutio's for theagencies, including estimated costs, recogniizing the need for full system support, andfor maintenance, simplified training requirements, and information exchangecompatibility.

(d) Specify manpower resources that will be required to implement the systems and toensure their operational efficiency after installation.

(e) identify and report on the full training needs and estimated training costs for thesystem users and computer staff

(f) recommend a series of individual on-site training courses for staff, required toprovide the appropriate information technology for the agency concerned.

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ANNEX7Page I of 2

TANZANIAFILMUP PROJECT

TERMS OF REFERENCE FOR THE COST RECOVERY STUDY

,Objective

l. The aim of the Cost Recovery Study is to explore with the managements of the institutionsbenefiting from the Financial and Legal Management Upgrading Project (FILMUP) ways in which theseinstitutions can recover more of their operating costs directly from their clients. For the purpose of thisstudy, "operating costs" include depreciation of fixed assets.

2. The concerned institutions are listed in the schedule attached to these terms of reference. Someof these institutions (e.g. NBAA, IFM, and IAA) already recover substantial proportions of their annualoperating costs from their clients. For exarnple, NBAA is currently (1991/92) dependent on Treasurybudgetary subventions for only about 50% of its annual cost (including depreciation). Others, such asthe Administrator-General's Office, recover only a small fraction of their costs, while relying on the Statebudget for the quasi-totality of their financing; and yet others are totally dependent on the Governmentbudget.

3. It is clear that the scope exists for greater cost recovery than is currently practised. TheAdministrator-General's Office for example, has indicated (and this is a condition of the FILMUP project)that, if it was allowed to charge realistic fees for its services, it could recover enough money to buy orprint most of the forms and other materials needed for its work, thereby reducing its dependence on theGovernment budget.

Study Methodology

4. The consultant is expected to study the operations, cost, clientele, and current charges (if any)of each of the institutions listed in the attached schedule. Based on this study, the consultant shouldpropose to managements of the concerned agencies how they could recover an increased proportion oftheir costs directly from their clients. These suggestions could take the form of cost reduction on certainservices, new charges on clients, increases in existing charges, or any other cost reduction or revenueraising measure that seems appropriate to the consultant.

Study Tim

5. The study is expected to last approximately three consultant months, including all phases ofreporting discussed below.

RepRrting Arrangements

6. The consultant, who must be acceptable to both NBAA and the World Bank, would be appointedby the NBAA. During his field work he would report to the Financial Management ComponentCoordinator located in the NBAA.

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ANNEX 7Page 2 of 2

7 At the end of his field mission the consultant should distribute and discuss with all the concernedinstitutions, the Treasury and tf.ie World Bank an Aide Memoire and action plan summarizing his mainrecommendations. On his return to his headquarters he should prepare a final report based on conclusionand recommendations he/she has agreed in the field with the Tanzanian authorities and the World Bank.The report shotild end with an action plar agreed with all the interested parties at the end of his/her fieldmission.

TANZANIAFILMUD PROJECT

Institutions to be Studied for Cost Recovery

1. National Board of Accountants and Auditors (NBAA).

2. Office of the Controller and Auditor-General (OCAG).

3. The Institute of Accountancy, Arusha (IAA).

4. The Institute for Finance Management (IFM).

5. The following Divisions of the Attorney-General's Office:

- The Civil and International Law Division,

- The Legislative Division (Office of the Chief Draftsman); and

- The Administrator-Generai's Division.

6. The Judiciary.

7. The Law Reform Commission.

8. The Department of Registrations, Commercial Laws and Industrial Licensing (Registrar ofCompanies).

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ANNEX SPage 1 of 2

TANZANIAFILMUP PROJECT

Terms of Reference for the Tanzania Audit Corporation (TAC) Study

Objective

1. The objective of the TAC Study is to recommend specific measures to implement thedecisior of the Tanzania Government to open up the audit of the accounts of parastatal institutionsto auditors other than the Tanzania Audit Corporation (TAC).

Background

2. The TAC was created by the Tanzania Audit Corporation Act (No. 1) of 1968, Section4 and 4A of which require the TAC to carry out audits of all parastatal institutions and such otherinstitutions as the President may direct. As of June 1991, TAC audited the accounts of about96% all parastatals in Tanzania. This virtual monopoly was criticized for many years, not onlyon account of the lack of choice for parastatal managements, and possible inefficiency and lackof independence on the part of TAC, but also because the monopoly was seen to militate againstthe emergence of strong private Tanzanian audit firms which could have been bolstered by havingsome strong parastatals as clients.

3. In response to these criticisms, and in line with Tanzania's economic liberalization underthe structural adjustment programs, Government has removed the monopoly, first in the 1991Banking and Financial Institutions Act, and, more completely in the Public Corporations Actpassed by Parliament in 1992. The latter Act allows the Directors of any parastatal in which theGovermnent owns less them 50% of the shares to appoint any qualified auditor to audit theaccounts, and the Minister of Finance to have similar rights with regard to those parastatalcompanies in which Government owns more than 5196 of the shares.

Reason for the Study

4. Neither of the Acts cited in paragraph 3 above spells out precisely how this new freedomshould be exercised in practice, nor whether or not it is nP>essary to formally repeal the TACAct of 1968. In addition, there are a few parastatals set up by individual Acts of Parliament inwhich the TAC monopoly of the audit is enshrined. The purpose of the present study is to comeup with specific recommendations regarding these and any other uncertainties, as well as specificactions designed to facilitate the implementation of the two Acts described in paragraph 3 above.

Study Methodology

5. The study should involve discussions with TAC, NBAA, tle Treasury, selected keyparastatal institutions (e.g. the Electricity Corporation, Posts and Telecommunications, and Bankof Tanzania), the legal authorities, and any other organizations considered appropriate by theconsultants and agreed with IDA and NBAA. The objectives of such discussions would be to:

(a) develop fairly authoritative views regarding:

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ANNEX 8Page 2 of 2

what specific actions (including further legislative actions, if any)need to be taken before the intent of the two Acts can berealized;

the intentions and views of the major parastatals regarding theirability and freedom to change their auditors, should they sodesire;

perceptions of selected private Tanzanian auditing firmsapproved by NBAA and IDA regarding their access to parastatalaudits, as a result of the two Acts.

(b) recommend specific actions based on (a) above that would facilitate therealization of the intent of the two Acts, i.e. to make it possible for allparastatals to appoint as auditor any qualified auditor of their choice

Study Period

6. The study is expected to last a total of two consultant-months, including all reportpreparation.

Report:g

7. During his field visit, the consultant with report to the Financial Management ComponentCoordinator (FMCC) located in NBAA. He will be appointed by NBAA after IDA approval ofhis C.V. At the end of his field visit, he will submit an "Aide Memoire" containing his mainrecommendations to the FMCC, the NBAA, the Treasury and IDA, discuss it with theseinstitutions, and based on their comments, prepare and dispatch to them a final report.

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TANZANIA ANNEX 0FILMUP PROJECT Page 1 od 15

PROJECT COST SUMMARY

T. Sh. Million - __S_000

item Loca Foreln Total Local Foreign Tota Forelan of TotalBase Codt

I. Financial ManagementNBAA 293.0 695.0 888.0 1196.0 2428.0 3624.0 87.0 19.0OCAG 36.0 47.0 83.0 146.0 193.0 338.0 57.0 2.0IAA 331.0 1155.0 1486.0 1352.0 4716.0 6068.0 78.0 31.0IFM - 6e8.0 668.0 - 2320.0 2320.0 100.0 12.0

Sub-Total 660.0 2365.0 3025.0 2603.0 9657.0 12350.0 77.0 64.0

II. Legal SectorAttorney-General's Office-Civil & IntemaRional Division - 93.0 93 0 - 379.0 379.0 100.0 2.0-Chief Parliamentary Draftsman - 70.0 70.0 - 284.0 284.0 100.0 1.0-Administrator-Generale' Office 44.0 66.0 110.0 180.0 270.0 450.0 60.0 2.0-Technical Assistance - 81.0 81.0 - 330.0 330.0 100.0 2.0-Printing 220.0 221.0 441.0 900.0 900.0 1800.0 50.0 9.0-UbrarySupport - 43.0 43.0 - 176.0 175.0 100.0 1.0Judiciary 75.0 212.0 287.0 305.0 866.0 1171.0 74.0 6.0Law Reform Commission - 64.0 64 0 - 260.0 260.0 100.0 1.0Regiutrarot Companles 47.0 47.0 - 195.0 195.0 100.0 1.0

Sub-total 339.0 897.0 12360 1385.0 3659.0 5044.0 72.0 26.0

III. Studies:Legal Sector Strategy - 61.0 61.0 - 260.0 260.0 100.0 1.0Cost Recovery Study - 20.0 20.0 - 80.0 80.0 100.0 0.4TAC Study - 16.0 15.0 - 60.0 60.0 100.0 0.3

Sub-total 0.0 96.0 96.0 0.0 390.0 390.0 300.0 2.0

IV. ProdectCordination:- Financial 21.0 26.0 48.0 85.0 103.0 188.0 56.0 1.0- Legal 16.0 26.0 41.0 65.0 103.0 168.0 60.0 1.0- Project Launch Workshop 2.0 - 2.0 7.0 - 7.0 0.0 0.0Incremental Operating Costs 194.0 - 194.0 793.0 - 793.0 0.0 4.0

Sub-total 233.0 50.0 283.0 950.0 206.0 1156.0 18.0 6.0

TOTAL BASE COST 1232.0 3408.0 4840.0 6028.0 13912.0 18940.0 76.0PHYSICAL CONTINGENCIES 58.0 138.0 196.0 238.0 565.0 803.0 68.0 4.0PRICE CONTINGENCIES 373.0 241.0 614.0 1621.0 986.0 2507.0 43.0 13.0TOTAL COST INCLUDING ALL

CONTiNGENCIES 1663.0 3787.0 6450.0 6787.0 15463.0 22250.0 72.0 117.0

The foliwing changes were Introduce to the above table during negotiations toarrive at the figures In Tables I and 2 In the text:

lln Net Increased In base Costsi-1Dailors)

IAA equipment oods 17000.0Attorney Generals Off. C&i Div.

T/A 20000.0Ubray 175000.0-Chief ParliamentaryDraftsmanTIA 30000.0

JudIciry- Motor vehicle for training sup. 30000.0Total incrase In base costs 272000.0

Both phycal and price contingencies were adjusted appropriately.

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TANZANIAFILMUP PROJECT ANNEX O

PROJECT COST SUMMARY Page 2 of 16(US$1000)

Item Year I Year Year 3 Year 4 Year5 Total Foreign %Financial Management;NBAA 886.0 2167.0 451.0 79.0 52.0 3824.3 68.0OCAG 238.0 39.0 43.0 18.0 - 338.0 67.0IAA 1705.0 2197.0 1467.0 382.0 327.0 6068.J 7S.0IFM 1400.0 476.0 414.0 20.0 4.0 2320.0 100.0

Sub-total 4234.0 4868.0 2385.0 499.0 383.0 12350.0Legal FrameworkAttornoy General's Office:-Civil & International Division 216.0 14U.0 18.0 - - 379.0 100.0-Chief Parliamentary Draftsman 64.0 67.0 124.0 29.0 - 284.0 100.0-Administrator-General's Office 37e.0 59.0 16.0 - - 450.0 -

-Technicol Aneistance 330.0 330.0 100.0-Printing 1800.0 1800.0 60.0-Library Support 75.0 50.0 50.0 175.0 100.0Judiciary 530.0 496.0 145.0 1171.0 74.0Law Reform Commission 154.0 99.0 7.0 260.0 100.0Registrar of Companles 66.0 90.0 33.0 - 6.0 195.0

Sub-total 1810.0 2807.0 392.0 29.0 6.0 5044.0Studies:Legal Sector Strategy 150.0 100.0 250.0 90.0Cost Recovery 80.0 80.0 90.0TAC Study 60.0 60.0 100.0

sub-total 290.0 100.0 0.0 0.0 0.0 390.0 100.0Project Coordination:- Financial 68.0 30.0 30.0 30.0 30.0 188.0 66.0- Legal 64.0 26.0 26.0 26.0 26.0 168.0 60.0- Project Launch 7.0 - - - - 7.0incremental Operating Costs 156.0 158.0 159.0 159.0 161.0 793.0

Sub-total 296.0 214.0 216.0 215.0 217.0 1156.0TOTAL BASE COST 6629.0 7900.0 2972.0 743.0 606.0 18940.0

- 97 -

ANNEX OPage3 do 1

TANZANIAFILIMUP PROJECT

NBM COSTS I,(USSO000)

Item Year I Year 2 Year Year 4 Year 6 Total Forelitg

Long-term training 100.0 127.0 74.0 60.0 22.0 379.0 96.0

Short-term training 41.0 37.0 10.0 20.0 - 108.0 100.0

Technical Aeustance 65.0 44.0 9.0 - - 108.0 100.0Study Manuals 168.0 - - - - 168.0 0.0

Computers an(1 Office Equipment 126.0 36.0 3.0 9.0 2.0 174.0 100.0

Motor Vehicles 69.0 31.0 28.0 - 28.0 140.0 100.0

Buildings-Office 341.0 1883.0 327.0 - - 2561.0 60.0

TOTAL BASE COST 885.0 2167.0 461.0 79.0 62.0 3624.0

1/ Details of training. T/A. quanthies. unit costs. etc. are In Annnex 1.

- 98 -

ANNEXPpag 4 of 15

TANZANUILMLUP LPDOOCA CO8T 11

YtK1 YZY Y.wa X4Y X1 TaI Faembn %

Training 83.0 26.0 43.0 18.0 - 183.0 6.0Cornputerg& Offoe Equipment 74.0 - - - - 74.0 100.0

Vehicles 111.0 - - _ - 111.0 100.0TOTA BASE COSTS 238.0 30.0 43.0 18.0 - 33d.0

1/ Dotils of ps. .,A to be trained, training locaftons, periods and costs arete Project File.Details of othe oosts and quantiies are In Annex 2.

- 99 -

ANNEX 9Poo6dof16

TANZANIAFILMUD PROJECT

IAACO8TS 1!(US$000)

Nem Yea I Year 2 Yew 3 Yea4 YerS Toal Foretnm %

Training - Long-term 60.0 103.0 81.0 - - 234.0 100.0- Short-term 181.0 111.0 111.0 71.0 11.0 486.0 100.0

Techncl Aeitance- Long-term; 480.0 480.0 - - - MA0 100.0- Short-tenn 120.0 60.0 40.0 40.0 40.0 100.0

Ubrary:- Equipment 40.0 17.0 12.0 7.0 11.0 87.0 100.0- Books 177.0 - - - - 177.0 100.0- Peroicals 64.0 64.0 64.0 54.0 64.0 270.0 100.0

Sub-total Ubrary 271.0 71.0 00.0 01.0 65.0 534.0 100.0

Computer & Office EquIpment 40.0 2.0 - - - 42.0 100.0Vehbles 78.0 _ _ _ - 78.0 100.0CMI Works 606.0 1370.0 1150.0 210.0 211.0 3466.0 60.0TOTAL IM BASE COSTS 1706.0 2197.0 1467.0 382.0 327.0 6068.0

11 For detils of training and T/A periods. quantlWes and unit codteof gocods. etc.. we Annex 3.

- 100 -

ANNEX 0Page e d 16

TANZAIA,9LMUP PROJECT

IFM COST I1(USfOOO)

KM Year I Yeu2g Ye__ Yer 4 Year 5 Total Foreign *

Training:Long-term 131.0 171.0 110.0 16.0 - 428.0 100.0Short-erm 110.0 0.0 60.0 - - 230.0 100.0

Technloal Aeuiano. 240.0 240.0 240.0 - _ 720.0 100.0Lalbrary- Reference boole 12.0 - - - - 12.0 100.0- Perdodlol 4.0 4.0 4.0 4.0 4.0 20.0 100.0-Text-books 118.0 - - - - 118.0 100.0- Equipment 16.0 1.0 - - - 16.0 100.0

0.0 100.0Computers & Offioe Equipment 6.0 - - - e26.0 100.0Ve'i;iole 160.0 - - - - 160.0 100.0TOTAL BASE COST 1400.0 470.0 414.0 20.0 4.0 2320.0 100.0

I/ Detailed quantites, unit oots book lids, etc. are In Annex 4 and Project Fis1.s

- 101 -

ANNEX 0Page 7 df 15

TANZANIAFILMUP PROJECT

ATTORNEY-0 NE 4RAL'8 OFFdE 0g-fj Mg(UwooVj)

Rem You 1 Yeaw 2 YearS Yw 4 Y"r6 5 1 Foreign

Civil & Intemational DivisionTraining 116.0 48.0 18.0 - - 179.0 100.0Computers and related software 100.0 100.0 200.0 100.0

Sub-total 215.0 148.0 18.0 0.0 0.0 379.0 100.0

Chiot Parilamientary DraftsmanTraining 64.0 6'.0 124.0 29.0 284.0 100.0

Administrator-General's OfficeTralning 28.0 50.0 15.0 - 100.0 100.0PrInting of forms 350.0 360.0 100.0

Sub-total 376.0 50.0 15.0 0.0 0.0 450.0 100.0

Technical Asistance:- Revision of the Laws of Tanzania 1160.0 - - - - 150.0 100.0- Revision of Corporate and

Commerclal Laws 160.0 - - - - 180.0 100.0Sub-total 330.0 0.0 0.0 0.0 0.0 330.0 100.0

Prirting of Revised Laws - 1800.0 - - - 1800.0 100.0Ubrary Bovks and Shalves 75.0 50.0 50.0 - - 175.0 10G.u

I/ For details of training and T/A periods, unit costs, quantitles, etc. see Annex 6 and project Files.

- 102 -

ANNEXOTI~~A PegeSd 16

FILMUP PROJECTl'JDICIARY COSTS I1

Item Year I YearO 2 Year Ye ar4 Year 6 TOal Forelhn %

Training - all Short-term 266.0 261.0 96.0 - - 01.0 80.0

Typewriter and Computers 76.0 76.0 50.0 - - 200C 100.0

Printing nf Tanzania Law Reports 200.0 170.0 - - 370.0 60.0

TOTAL BASE COST 630.0 486.0 145.0 0.0 0.0 1171.0

11 Detaill of training periods, unit costs, quantitles, etc. are in Annex 6 and Project File.

ii~~~~~~~ Io o .

I~ 88

U og W1

I~~ o o

- 104 -

ANNEX 9Page 10 of 16

TANZANIAFILMUP PROJECT

STUDIES COSTS(US$000)

item Year 1 Year 2 Year 3 Year 4 Year Total Foreian

Legal Sector Study 1/ 150.0 100.0 - - - 250.0 90.0

Cost recovery Study 2/ 80.0 - - - - 80.0 100.0

TAC study 3/ 60.0 - - - - 60.0 100.0

TOTAL BASE COST 290.0 100.0 - - - 390.0 200.0

11 Costs of foreign and local consultants (not financed by bilateral donors) Including fees.travel within, to, and from Tanzania, per diem etc.

2/ Estimated at 3, staff-months of consultants. international and local traveland per diem.

3/2 consultant-months plus intemational and local travel, and per diem.

- 105 -

ANNEXOPaOe 11 of Is

TANZANIAFILMUP PROJECT

FINANCIAL COMPONENT COORDINATION COST(US$OOO)

Item Year I Year2 YearS Yer 4 YearS Totl Forelan6

Co-ordinator's Salary 1/ 12.0 12.0 12.0 12.0 12.0 60.0 0.0

Motor Vehicle 30.0 - - - - 30.0 100.0

Personal Computer withprinter, programs & software 4.0 - - - - 4.0 100.0

Ineremental fuel, lubricantsetc. 2/ 3.0 3.0 3.0 3.0 3.0 15.0 100.0

Air fares 3/ 1.0 1.0 1.0 1.0 1.0 5.0 0.0

Per diem on Arusha visits 4/ 3.0 3.0 3.0 3.0 3.0 15.0 0.0

Driver, Secretary & Officeexpences 1.0 1.0 1.0 1.0 1.0 5.0 0.0

Procurement Seminar and Advice 6J 14.0 10.0 10.0 10.0 10.0 54.0 100.0

TOTAL BASECOST 68.0 30.0 30.0 30.0 30.0 188.0

1/ US$12.OOO/Yr.21 Fuel. lubricante, maintenance and spares, say, $260/mth.3 4 visits a year to Arusha for projct co-ordination purposes ($250 x 4).4/4 days each dsIt at $150/day.8/Seminar in ESAMI In year 1, plus 4 weeks of consultant's advice, traveland per diem each year. to be shared equally with the legalcomponent coordinator.

- 106 -

ANNEX0Pae120116

TANZANIAFILMUP PRO IECT

LEGAL COMPONENT COORDINATION COSTS

(UnoOD)

KM Year I Ye r2 Year3 You 4 Year6 Ttal Foreign%

Coordinator's Salary 1/ 12.0 12.0 12.0 12.0 12.0 60.0 0.0

Motor vehicle 30.0 - - - - 3.0 100.0

Personal computer with printer, 0.0 100.0

programs, software 4.0 - - - -0.0 100.0

Incremental fuel, lubricants, 3.0 3.0 3.0 3.0 3.0

etc. 21 0.0 100.0

Procurementseminar&Advice3/ 14.0 10.0 10.0 10.0 10.0 54.0 100.0

Dtver Secretary & otflce expenses 1.0 1.0 1.0 1.0 1.0 5.0 100.0

TOTAL BASE COST 64.0 26.0 26.0 26.0 26.0 168.0

i/ US$12.00O0Year.21 Fuel.lubricants, spares and maintenance, say $250/month.3 Procurement seminar at ESAMl, Arusha: Airfares (S250), tuitUon and per diem (3,760).

Seminar In ESAMI In Year 1, plus 4 weeks otoonsultant's advice, trawl and per diem each

year, to be shared equally with the Financial Component Co-ordinator.

- 107 -

ANNEX 9Paeg 13 of 15

TANZANIAFILMUP PROJECT

CALCULATION OF CONTINGENCIES - FOREIGN COSTS(USSOOO)

Im year 1 Yewr 2 Year Year 4 Year 5 TOtal

TOTAL BASE COST 6629.0 7960.0 2972.0 743.0 06.0 18040.0

LESS: LOCAL BASE COST 928.0 2680.0 848.0 293.0 276.0 4926.0

FOREIGN BASE COST 5701.0 5410.0 2124.0 450.0 330.0 14016.0

FOREIGN COST OF:- Buildinpe: NBAA 205.0 1130.0 106.0 - - 1831.0

IAA 303.0 822.0 725.0 126.0 127.0 2103.0- Hardware (Vehicles & Equlpment) 1585.0 286.0 93.0 16.0 41.0 2021.0

2003.0 2238.0 1014.0 142.0 168.0 566.0

PHYSICAL CONTIGENCY:10% of Buildings and Hardware 209.0 224.0 101.0 14.0 17.0 656.0

SUB-TOTAL (BASE COST & PHYSICALCONTINGENCY) 5610.0 5634.0 2225.0 464.0 347.0 14680.0

PRICE CONTINGENCIES (Year 1.1902193) 207.0 401.0 242.0 eo.0 67.0 986.0Peroentages 3.5 3.6 3.5 3.7 3.9

TOTAL FOREIGN COSTS. INCLUDINGALLCONTINGENCIES 6117.0 603.0 2487.0 633.0 414.0 1566.0

- 108

ANNEX9Pai 14 of 15

TiAZANRiLMUP PROJECT

CACULATION OF CONTINGENCIES - LOCAL COSTS(USt000)

iten Y.i t AY Y*sr 3 Yer 4 X.wA 6 Lal

LOCAL COSTSNBAA- Buildings (40%) 136.0 783.0 131.0 - - 1020.0- Long-ten .training (5%) 5.0 6.0 4.0 3.0 1.0 19.0Sub-total 141.0 789.0 138.0 3.0 1.0 1039.0

IM- Building. (40%) 202.0 6548.0 463.0 84.0 84.0 1381.0

OCAG- Training (06%) 60.0 37.0 41.0 17.0 - 148.0

Atorney-General 'Off- Adminlitrator-Genral- Training (6%) 1.0 3.0 1.0 - - 8.0- Printing (60%) 175.0 - - - - 175.0Sub-totai 176.0 3.0 1.0 0.0 0.0 180.0

Printing of Revised Lawof Tanzania (80%) - 900.0 - - 900.0

Judiciary- Training (20%) 51.0 60.0 19.0 - - 120.0- Prnting of Law Reports (50%) 100.0 85.0 185.0Sub-total 151.0 135.0 19.0 - - 305.0

Sudies-Legal Seotor (10%) 15.0 10.0 - - - 25.0

Project Coordination- RlnanoW 17.0 17.0 17.0 17.0 17.0 85.0- Lega 13.0 13.0 13.0 13.0 13.0 06.0Sub-total 30.0 30.0 30.0 30.0 30.0 150.0

ProJeotLaunch&OperatgCosts 163.0 166.0 159.0 189.0 161.0 800.0TOTAL LOCAL BASE C0ST 928.0 2860.0 848.0 203.0 276.0 4925.0

PHYSICAL CONTINGENCIES:10% ON BUILDINGS& HARDWARE 34.0 131.0 67.0 8.0 8.0 238.0

SUB-TOTALBASE COST & PHYSICAL CONTiNGENC 02.0 2711.0 905.0 301.0 284.0 5163.0

PRICE CONTINGENCIES 128.0 m.0 344.0 160.0 207.0 1521.0(YEAR I * 1SOMS) 190 11.0 10.0 10.0 10.0

TOTAL INCLUDING ALL CONTINGENCIE 10t7.0 3400.0 1249.0 457.0 491.0 664.0

TANZANIA

FllIJ 9OIECTCOST OIP WARTXnI OFREWGIUDNINSCOMMIAL LAWS. ANDUDWDMAL SLHNO

kmw YOUI Tk *2 YS3 Yr4 Yet S Tod Fogd S

ggf LhliCad AO ,AMO U( Cl,a* Avo i lb CMG Amm QAti A_ C0 AWmtC Qo UnilCe AmA 0w_ W D

Tn : 1- 34.00 - - - - - - 34.00

6 mu - - 14.00 - - - - - - - - - - - - - - 14.00

Sinetb - - - 14.00 - - - - - - - - - - - M4.00

6 MOD4.00 - - - - - - - - - - - 14.00

eo m ba do

koeq or Lmy

n Cwa - - - - - 27.00 - - 28.00 - - - - - - - - 55.0O

S&ITadubm" 0.00 0.00 28.tO 0.00 0.00 55.00 0.00 0.00 28.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 I00D.O

nfm m 3.00 4.60 4.60 3.00 4.70 4.70 1.00 4.70 4.70 - - - - - - 3.00 4.70 34.00 t

_ ( a2001) I.tO 9.00 9.00 - - - - - - - - - 1.00 9.00 9.00 %0

6 C _ Waok _m3 5.00 5.00 25.00 - - - - - - - - 5.00 5.00 25.00

U ml9Eqd () - - - 2.00 23.00 2-.00- - - - - - 1.00 21.00 21.00

D 4m _ 1.00 6.00 6.00 - - - - - - - 3 .00 6.00 6.00 2.O 12.00 12.00

Ak-Jnkr 8 0.60 0.00 - - - - - - - - - - - 1.00 0.60 0.60

v a"_3m 1.00 0.30 2.00 - - - - - - - - - - - - 7.00 0.30 2.00

b4 1m Eqdp_ 39.20 34.70 4.70 6.00 3.60 300.00

66.20 89.70 32.70 - - 6.00 194.60 300.OD

TOTAL MA CM

0

- 110 -

ANNEX 10

TANZANIAFILMUP PROJECT

Estimated Schedule of Dlsbursements

IDA Semester DLsbursements CumulatlveFiscal Year EndLna Dlsbursements

----------- US$°00O -------------

1992/93 Decemeber 31, i992 250 250June 30, 1993 560 810

1993/94 December 31, 1993 1,521 2,331June 30, 1994 3,093 5,424

1994/95 December 31, 1994 3,131 8,555June 30, 1995 3,894 12,449

1995/96 December 31, 1995 3,753 16,002June 30, 1996 2,687 18,889

1996/97 December 31, 1996 377 19,266June 30, 1997 367 19,633

1997/98 December 31, 1997 367 20,000

- 1.11 -

Annex 11TANZANIA

Financial and Legal Management Upgrading Project (FILMUP)

Imnlementation Schedule

Estimated Annual Contractual and Other Payments(USS million equivalent)

Project Year Total ICs RemarksPre- ..... Payment LCBProject 1993 1994 1995 1996 1997 OTH

. . ... . .. . . . . . .. . .. . . . . . . ... NSFProject Elemants\Quarters 1 2 3 4 12 34 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 (a)....... ....... ... ......... ........... ........ ......... ........ ......... ........ ......... ........ ....... ........ ......... ...... ........ ...................... .

Credit Timimg...... ....... ............... ....

Sign/Effec/Close ** ** **

Works....... ........... .... ...... .... .........

Signing of Contract for Design xxDesign/Bid Docs. ready for review xxxxBid/Award submitted to tDA xxConstruction contract Signature xxConstruction: xxxx xxxxxxxx

* NBAA 1.0 2.2 3.2 ICB- IAA 0.7 1.5 2.2 ICB- IAA (Boarding Facilities) - 0.6 0.6 ICS Subject to Condition* IAA (Staff Housing) 0.4 0.2 0.2 0.8 NSF Subject to Condition

Goods..................................... ............. .

Signing of Contract of Proc.Spec. xxBid Docs ready for review xxxxBid/Award submitted to IDA xxContracts Signature xxVehicles 0.4 0.2 - 0.6 ICB 0.1 (LCB)Office Equipment & Comuters 0.4 1.0 0.3 1.7 ICB 0.5 (LCS) & 0.2 (OTH)Printing of Law Books & Reports 2.5 0.3 2.8 ICSLibrary Books & Library Equipment 0.8 0.2 1.1 ICa

Consultancies..................... . ......

LOt/TORs/Short List for approval xxxxBid/Award submitted to IDA xxContracts reviewed by IDA xxContracts Signature xxSelection of Archftect/Engineer xxxxxxConstruction Design/Supervision 0.4 0.2 0.1 0.7 OTH Already SelectedTechn. Assistance 1.0 1.0 0.9 2.9 OTH 0.3 financed by SIDAEdf ting of Study. ManuaLs 0.2 0.2 OTHTraining 1.0 1.4 0.8 0.5 3.7 OTH

Miscellaneous (Operating Costs)~~~~~~....... ........... .........

Salaries and Consumables xxxx xxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxx 0.2 OTH 0.2 financed by SIDAIncremental Operating Costs xxxx xxxxxxxx xxxxxxxx Axxxxxxx xxxxxxxx 1.12 NBF Financed by Government

. ....... .............. ........ .......Non.Sa.k.(a): Procurement Methods: NX.F. Non Bank-Ffnanced

- 112 -

ANNEX 12Page 1 of 3

TANZANIAFILMUP PROJECT

SUPERVISION PLAN

1. Borrower's Contribution to Supervision would primarily take the form of full-time projectmanagement by the two project coordinators: The Financial Management ComponentCoordinator (FMCC) and the Legal Sector Component Coordinator (LSCC). Their supervisoryfunctions would include:

(a) review, initially and recording of:

'i) all project procurement orders

(ii) all disbursement requests

(iii) all cheques drawn on the Special Accounts;

(iv) all other documents evidencing project transactions ofwhatever nature;

(b) preparation of annual project implementation budgets;

(c) preparation of bidding and other project contract documents;

(d) preparation of half-yearly reports on all aspects of projectimplementation, including comparisons of actual with budgetedprocurements disbursements, etc.;

(e) maintenance of project books and records, and preparation of bankreconciliation statements;

(f) preparation of annual project accounts;

(g) arranging for the audit of annual project accounts;

(h) maintaining surveillance over project assets;

(i) forwarding all procurement and disbursement requests, to and from IDA,and all accounts and audit reports to IDA; and

(j) arranging and accompanying Bank SIDA supervision missions.

- 113 -

ANNEX 12Page 2 of 3

2. In addition to special supervision missions to be mounted by IDA in accordance with theschedule set out in Annex 12, Schedule (attached), IDA staff would need to spend time at IDAHeadquarters on dealing with correspondence, reviewing and commenting on procurementdocuments, disbursement requests, half-yearly reports and audited accounts. The amount of timelikely to be involved is estimated as follows:

Project Year 1 6 staff weeksProject Year 2: 6 staff weeksProject Year 3: 5 staff weeksProject Year 4: 4 staff weeksProject Year 5: 3 staff weeksProject Year 6: 2 staff weeks

3. Not earlier than September 1994, and not later than September 1995, there would be aMid-Term Project Review by Government, IDA, and SI 'A participation. Terms of referencefor the review would be prepared by IDA and cleared with Government and SIDA in advanceof the review date. In general terms the review would involve an examination of the status ofimplementation of the project, including not only progress on procurement, disbursements, andconstruction, but also review of quantitative and qualitative benefits anticipated from the project.

4. To the extent possible, IDA and SIDA should undertake joint supervision missions of theproject.

- 114 -

Page 3 of 3

TANZANFILMUP PROJECT

BAK SUPERVISION INPUT INTO KEY ACTITES

AgDOXmt Activity EXDeted SklC Wff1PXAW (hfft-Week

Septenber 1992 First Supervision Mission - Chartered Accountant (or CPA) 8(Project Launch Workshop - Counsel

- Disbursement Expert- Procurement Expert

March 1993 2nd Supervision Mission - Chartered Accountant (or CF&) 8- Construction review - Counsel- General progress review - Architect- Work on Legal Sector Study - Trainingwith Legal Study Task Force

EY9Spteber 1993 3rd Supervision Mission - Chartered Accountant (or CPA) 6

- General Progress Review - Counsel- Preparations for Donors

Conference on LegalSector Report

March 1994 4th Supervision Mission - Chartered Accountant (or CPA) 4- General Progress Review - Counsel

Septenber 1994 5th Supervision Mission -Chartered Accountant 4- General Progress Review - Counsel

March 1995 6th Supervision Mission and - Chartered Accountant 8Mid-Tenn Review (including - Architectdecision on new students' - Counselhostel and staff housing at - TrainerIAA)

September 1995 7th Supervision Mission - Chartered Accountant (CPA) 4- General Progress Review - Counsel

March 1996 8th Supervision Mission - Chartered Accountant (CPA) 4- General Progress Review - Counsel

EmSeptember 1996 9th Supervision Mission - Chartered Accountant (CPA) 4

- General Progress Review - Counsel

10th Supervision Mission- General Progress Review - Chartered Accountant

March 1997 - Counsel 4

fm 8September 1997 11th Supervision Mission - Chartered Accountant

- Preparation of PCR - Counsel- Architect

- 115 -

ANNEX 13Page 1 of 2

TANZANIAFT,MUP PROJECT

SELECTED DOCUMEJNTYS IN THE IpROJECT DUL

1. Original FILUMP Project Proposals from NBAA, IFM, IAA, the Attorney-General's Chambers,the Judiciary, the Law Reform Commission, and the Department of Registrations, CommercialLaws and Industrial licensing (Registrar of Companies).

2. Dar es Salaam School of Accountancy-Prospectus for the Academic Year 1991/92.

3. Institute of Development Management, Mzumbe,- Prospecrus 1990/91 -1991/92

4. Institute of Accountancy, Arusha- Prospectus 1992/92

5. Institute of Finance Management- Prospectus 1989/90 - 90/91

6. Report of the Controller and Auditor-General for the Financial year ended 30th June 1989(Published in 1991).

7 Architect's (Charles Egbert) Report and Draft Engineers' Contract for proposed Project Buildingsfor NBAA and IAA - April 1992.

8. Consultant's (L.B. Fumbuka) Report on Legal Information Systems dated March 18, 1992.

9. NBAA Annual Report and Audited Accounts for Years Ended June 30, 1986, 1987, 1988, 1989and 1990.

10. IFM Annual Report and Audited Accounts for Years Ended June 30, 1986, 1987, 1988, 1989and 1990.

11. The Auditors and Accountants (Registration) Act No. 33 of 1972.

12. NBAA Report No. B.P. 67.8 NA Report on the State of accounts in Government and ParastatalSectors in Tanzania Max land" - 18th January 1989.

13. TAC Annual Report and Accounts for the year ended 30th June 1990.

14. Tanzania Statements of Standard Accounting Practice- an NBAA Publication.

15. NBAA - Tanzania Statements for Auditing Standards and Guidelines Feb. 1989.

16. NBAA - OTanzania Statements of Accounting Guidelines' - November 1989

- 116 -

Page 2 of 2

17. NBAA - Tanzania Statements of Accounting Guidelines - December 1990

18. NBAA - Examiners' Report and Pass List for the 34th examination session - November 1991.

19. IAA Proposed Budget for the Year 1992/93.

20. 'Advanced Diploma in Government Accountancy and Audit"'- Submission to the National Board of Accountants and Auditors, August 1991.

21. Consultant's (.E. Mlaki) Report on Law Libraries- March 1992

22. NBAA List of Authorized Auditors and Authorized Accountants Registered with NBAA.

23. Advanced Diploma in Government accountancy and Audit - Final Development and EvaluationReport - International Management Consultants Limited - March 1992.

24. Strengthening the Accounting and Auditing Function - Final Report by International ManagementConsultants Limited-December 1991.

- 117 -

ANNEX 14

TANZANIAFILMUP PROJECT

PIANNING FOR PROJECT LAUNCH WORKSHOP

DATE: First half of October 1992, shortly after effectiveness.

AGENDA: Procurement; Disbursements; Accounts and Audits; Budgeting andReporting; Planning for all studies; Construction Plans; otherProject Implementation Issues; Professional Orientation of IAA andIFM.

DURATION: 3 full working days (3 nights).

LOGISTICS: Residential, with own transport arrangements to and from hotel.

PARTICIPATION: Project Coordinators 2- Other Government representatives:

One from each of project institutions i.e. 10+ Deputy-Attorney General 1+ Registrar of NBAA 1+ One trom Treasury 1

13

SIDA One representative 1IDA: 4 professionals from Washington (specialized inaccountancy, law, procurement, disbursement) 4+ One from Resident Mission 1

5

Total number of participants 21

COST Y: Hotel rooms and per diem for Tanzanian participants (2 + 13 above)i.e., 15 persons x 3 rights x $150/day US$6,750Rental of hotel meeting room 3 days x $100 300Estimated Cost included in Project 7.050

I1 IDA and SIDA participants would pay all their own costs.