ACTIVITY IMPLEMENTATION PROPOSAL

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Towards a private sector enabling environment

Vers un environnement favorisant le développement du secteur privé

Av. Roger Vandendriessche, 38 1150 Brussels – Belgium Tel : +32 2 777 08 68 Fax: +32 2 777 08 60 [email protected]

ACTIVITY IMPLEMENTATION PROPOSAL

TITLE Development of Capacity and Framework at the ECOWAS Commission for monitoring investment climate

AIP Ref. WP2.28.1-1.008

WP Activity N°

Item Amount in Euro

2.2 1. Study for ECOWAS Monitoring Investment climate 115.750 € 2. Organisation of a 2-day sensitisation workshop in Abuja (40 participants) 93.952 € Contingencies (1%) 2.097 € 2 Total Cost 211.799 €

ECOWAS Duration of Activity 6 months

Sector PMU STE 1 assigned Francisco

RAMIREZ

Topic PMU STE 2 assigned

Type of intervention

PMU STE 3 assigned Nbre

2 Type of activity requested

Regulatory Framework and SOE reform at Regional level

Work Programme

Description

> Expertise for a study (inc luding provision for travel cost of 2 ECOWAS Coordinators if required)

> Organisation of 2 days training session for the ECOWAS Commission's staff & 2 persons from ECOWAS Member states

Implementation modalities Service contracts

Study & seminar Service Trade and Investment

Region/country

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NAME OF THE REQUEST

TITRE DE LA REQUÊTE Development of Capacity and Framework at the ECOWAS

Commission for monitoring investment climate

REGION/COUNTRY CONCERNED

PAYS OU REGIONS CONCERNES

Economic Community of West African States Commission - ECOWAS Commission

SECTOR CONCERNED

SECTEUR OU THÈME CONCERNÉ

Upstream studies and Interventions on the enabling environment and State Owned Enterprises reform (Etudes en amont et interventions sur l’environnement facilitant les affaires et l'amélioration du dialogue entre les secteurs public et privé)

Support in the follow-up of recommendations (Actions de mise en œuvre des recommandations des études déjà réalisées).

DATE OF THE REQUEST March 2008

SUMMARYOFTHEINTERVENTIONREQUESTED RÉSUMÉ

In the course of 2008, BizClim has been requested by the ECOWAS Commission to develop an Investment Policy Framework and a Community Investment Code.

Different studies have evidenced the weakness of the ECOWAS Commission regarding its own capacities and instruments to monitor the regional investment climate and thereafter to propose relevant policy reforms.

Therefore, the proposed assignment is intended to:

i) identify key indicators and build a monitoring system/tools of the investment climate

ii) sensitize key stakeholders and prepare guidelines/recommendations for further improvement of the business environment.

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NAME OF THE APPLYING ORGANIZATION:

NOM DE L’ORGANISATION

ECOWAS Commission

ADDRESS:

(STREET,POST CODE AND COUNTRY) ADRESSE (RUE, CODE POSTAL ET PAYS)

ECOWAS COMMISSION 101 Yakubu Gowon Crescent Asokoro District P.M.B. 401 Abuja, Nigeria CONTACT PERSON: PERSONNE DE CONTACT Mr. Enobong Umoessien FUNCTION OF THE CONTACT PERSON FONCTION

AG. Director Private Sector Department

EMAIL ADDRESS ADRESSE COURRIEL [email protected] or [email protected] TELEPHONE TÉLÉPHONE 00234(0)8051353682; 8039634517; 00234(9)3147647-9; 3147427-9 FAX FACCIMILE 00234(9)3143005; 31477646

SKYPE (if any)

PARTNER ORGANISATIONS: Please indicate the name of the partner organisations and contact person(s), including their email adresses

Merci d’indiquer le nom des organisations partenaires, des personnes de contact et leur adresses email

Association of Investment Promotion Agencies of West African States (AIPAWAS) Stephen Amase, [email protected]

NEPAD Business Groups in Member States

Nigeria: Mr. Goodie Ibru, [email protected]

Côte d’Ivoire: M. Guy M’Bengue, [email protected]

Regional and national business associations

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Av. Roger Vandendriessche, 38 1150 Brussels – Belgium Tel : +32 2 777 08 68 Fax: +32 2 777 08 60 [email protected] HOW THE PROPOSAL IS LIKELY TO LEAD TO FOLLOW-UP ACTIVITIES?

COMMENT LA PROPOSITION EST-ELLE SUSCEPTIBLE DE CONDUIRE À LA PRISE EN COMPTE DES RECOMMANDATIONS ET DE DEBOUCHER SUR LA MISE EN OEUVRE D’ACTIVITES DE SUIVI ?

The ECOWAS Commission is committed to improve the business environment and the investment climate in the region. Various initiatives have been undertaken to this respect.

The present project should lead to setting-up a regional database of information on the investment climate. Updates should be done on a regular basis with the support of the investment promotion agencies.

Analyzing the information on investment climate should lead to an improved identification of the appropriate measures aimed at improving the investment climate.

IS THE PROPOSAL CONSISTENT, COHERENT AND COMPLEMENTARY WITH OTHER INTERVENTIONS?

EST-CE QUE LA PROPOSITION EST COHÉRENTE, CONSISTENTE ET COMPLÉMENTAIRE À D’AUTRES INTERVENTIONS?

The ECOWAS Commission is currently developing with the support of BizClim a Policy Investment Framework and a Community Investment Code. In addition, the ECOWAS Commission has endeavored to develop a Community Competition Policy.

Setting up a monitoring system of the investment climate is complementary to the above mentioned interventions and will help measuring their practical achievements.

Moreover, the ECOWAS Commission is considering the possibility of undertaking a complementary project, aimed at setting-up a Non-Tariff Barriers Observatory, which will not overlap the proposed assignment.

EXPLAIN TO WHAT EXTEND THE PROPOSAL IS SUPPORTED BY KEY STAKEHOLERS ?

EXPLIQUEZ DANS QUELLE MESURE LA PROPOSITION EST SOUTENUE PAR LES PRINCIPALES PARTIES PRENANTES ?

The ECOWAS Commission, the partner organizations, the Member States agencies involved, as well as West African Region private sector are strong supporters of the proposed assignment.

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ACTIVITY INTERVENTION LOGFRAME

SUMMARY OF THE INTERVENTION REQUESTED Résumé

BizClim is currently supporting the ECOWAS Commission and the private sector of the West African Region in finalizing a regional Policy Investment Framework (PIF) and a Community Investment Act (CIA). The ECOWAS Commission is also currently in the process of developing a Community Competition Policy. With both major projects and other related internal research and training activities, the ECOWAS Commission is embarked in the implementation of the necessary steps aimed at preparing the West African Region for the EPAs and other Trade agreements. Moreover and according to its founding treaty, the ECOWAS Commission is seeking to make the West African Region a global competitive destination for domestic, communitarian and foreign investment, fostering sustained growth, social and economic development and poverty reduction in the Member States.

Unfortunately, different studies have evidenced the weakness of the ECOWAS Commission regarding its own capacities and instruments to monitor the regional investment climate and thereafter to propose relevant policy reforms.

Therefore, the proposed assignment is intended to facilitate the permanent and effective monitoring of the regional investment climate, aimed at ensuring its regular and sustained improvement, matching both parties, the ECOWAS Commission and the private sector expectations.

The current project aims at defining a comprehensive framework where specific indices will be identified for monitoring the regional investment climate. The roles and responsibilities of the relevant agencies in maintaining the monitoring system and providing the necessary data will be clarified. The project also includes a capacity building component.

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Av. Roger Vandendriessche, 38 1150 Brussels – Belgium Tel : +32 2 777 08 68 Fax: +32 2 777 08 60 [email protected] PROBLEM TO BE ADDRESSED : Problèmes à résoudre

What is the specific problem which requires solution?

The ECOWAS Commission is embarked into the improvement of the business environment in the region, notably through the preparation of a Policy Investment Framework, a Community Investment Code as well as a Community Competition Policy.

In parallel, different studies have evidenced the weakness of the ECOWAS Commission regarding its own capacities and instruments to monitor the regional investment climate and thereafter to propose relevant policy reforms.

Such efforts undertaken at regional level to harmonize policies and measures affecting the business and investment environment should hence be complemented by appropriate tools and systems measuring the impact of the initiatives taken and facilitating the identification and improvement of future interventions.

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PURPOSE OF ACTIVITY:

But de la proposition Who are the beneficiaries and how will they benefit? How _{will the results of the activity solve the problem(s)?}

By defining a monitoring system of the investment climate that will enable the ECOWAS Commission and each Member states measure the impact of their interventions, the stakeholders will be able to fine tune their strategies and approaches in improving the investment climate. In doing so, it is expected that the region will attract more investment at national, interregional and foreign levels, and in a sustainable way.

The monitoring system will also gives the occasion to the ECOWAS Commission and its Member States to share strengths and best practices, to identify and use opportunities; and to identify and counter weaknesses and threats to the regional investment environment.

The main purpose of this project is to facilitate a permanent, systematic and effective monitoring of the regional investment climate, aimed at ensuring its regular and sustained improvement, matching both parties, the ECOWAS Commission and the private sector expectations. A comprehensive framework should be defined, in which specific indices for monitoring the regional investment climate should be identified. All relevant agencies involved in the monitoring system should be identified and their roles and responsibilities clarified with respect to the transfer of information and analyse of data. The monitoring system should clarify the modalities for lifting, reporting, monitoring and managing data, as well as the actions required in terms of capacity building.

EXPECTED RESULTS :

Résultats attendus What are the results expected from the activity? (one or _{more results will achieve the Purpose)}

The project should lead to setting-up a useful and easy-to-use monitoring framework where clear roles and responsibilities are defined for transferring, processing and analyzing data on the investment climate.

The monitoring framework and relevant tools developed should be grounded upon existing indices of proven validity.

The monitoring framework should establish a clear procedure for the consultation of the private sector.

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RELATED PROGRAMMES AND OTHER DONORS ACTIVITIES: Autres programmes et activités

Identify and describe the link, if any, between the

proposed intervention and the activities and programmes of national/regional authorities and other sources of external assistance in the same sector. What is the added value or complementarities with the intervention

requested?

BizClim is currently supporting the ECOWAS Commission and the private sector of the West African Region in finalizing a regional Policy Investment Framework (PIF) and a Community Investment Act (CIA). The ECOWAS Commission is also currently in the process of developing a Community Competition Policy, for the instance by its own means.

Therefore, the proposed assignment is intended to contribute to ensure the sustainability of the current process and maintain the competitiveness of the system to be established.

Neither the ECOWAS Commission, nor the Partner Organizations or the Member States have undertaken other known related interventions.

However, the ECOWAS Commission is considering the possibility of undertaking a complementary project, aimed at setting-up a Non-Tariff Barriers Observatory, which will not overlap the proposed assignment.

The experts may build upon the experience acquired in the COMESA through project

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OVI AND SOURCES OF VERIFICATION :

Indicateurs vérifiables et sources

What is the quantifiable evidence of the results?

Project objective(s) / Objectif global Project purpose / Objectif spécifique Results / Résultats Objectively Verifiable Indicators (OVI) Indicateurs objectivement vérifiables (IOV) Sources

Kick-off meeting Minutes of the meeting Consultant

Study and design of the framework and tools

Report of the study Consultant

Validation meeting Minutes of the meeting Consultant

Implementation and delivery

Report and minutes Consultant and ECOWAS

Training Workshop Report of the training Number of people trained

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ACTIVITIES :

Activités What are we / they planning to do? _{If any workshop/seminar, please indicate the number and type}

of participants expected

Si un atelier/séminaire est organise, merci d’indiquer le nombre et le type de participants attendus

The implementation of the proposed assignment will evolve around the following main activities:

1. Identify the key determining indices of the investment climate in West Africa. Based upon existing indices and index at international, regional and local level, the experts will assess the validity of the information. A kick-off workshop will be organized to agree on the methodology and sensitize key stakeholders (Member states, private sector representatives, UEMOA).

2. Develop a monitoring framework and appropriate tools. The tools and monitoring framework will be designed in a pragmatic manner, using information available or easily produced. The experts may build upon the experience acquired in the COMESA through project WP1.27.2-1.034;

3. Develop the modalities/procedures for the monitoring exercise involving the ECOWAS Commission and Member States. Clear roles and responsibilities will be defined for all stakeholders in the provision, processing and analyze of information. The monitoring framework should establish a clear procedure for the consultation of the private sector, notably in view of the network of chambers of commerce being currently established with the support of the European Commission. Sensitization

4. Organize a Validation meeting in Abuja with key stakeholders. The meeting is expected to take place at ECOWAS Commission’s headquarters.

5. Finalize the monitoring framework, tools and procedures in the light of the discussions;

6. Organize and undertake a 2-day sensitisation workshop in Abuja for 40 participants to train 8 ECOWAS Commission’s staff and 32 Member States (2 each) on the use of the framework/tools. The workshop will be used to lift

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Av. Roger Vandendriessche, 38 1150 Brussels – Belgium Tel : +32 2 777 08 68 Fax: +32 2 777 08 60 [email protected] Inputs: Inputs

Indicate the required working days per expert, travel and per diem Indiquer la répartition des jours de travail par experts, les voyages et les per diem

Workload

(including travel days)

Expertise Total expertise

Intern.

Travel Regiona_{l travel} Per diem 1 CAT1 2 CAT2 3 CAT2

1. Identification of the key determining indices of the investment climate in West Africa

8 7 15 2 2 15

2. Development of a

monitoring framework and tools

8 5 10 23

3. Development of the modalities/procedures for the monitoring exercise involving the ECOWAS Commission and Member States

7 5 4 16

4. Validation meeting in Abuja with key stakeholders

4 3 3 10 3 6

5. Finalize the monitoring framework, tools and procedures in the light of the discussions

4 3 3 10

6. 2-day sensitization workshop of ECOWAS Commission’s staff and Member States on the use of the framework/tools & collect of information

6 6 6 18 3 13

7. Translating them into policy advise to support reforms in the business climate

5 4 9

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BUDGET

BUDGET : Who will

implement them?

Title Unit Quant. Unit

price Total Sub-total by contract Implementation modalities

(euros) (euros) (euros) 1. Study for ECOWAS Monitoring Investment climate 115.750

- Fees Team leader - Cat I m/days 42 900 37.800 - Fees Financial Expert - Cat II m/days 33 750 24.750 - Fees Computer Expert - Cat II m/days 26 750 19.500 - Per diem Experts nights 34 250 8.500 - International Travel Experts Return 8 1300 10.400 - Regional Travel Experts Return 2 800 1.600 - Output/Report: drafting &

dissemination (including 2-day w orkshop) and translation

Lump sum 1 5000 5.000

- Provision for meetings (kick-off w orkshop, validation, other)

Lump sum 1 2000 2.000

2. Provision for specific expenses if required ECOW AS coordinators(2)_(x2)

- Per diem nights 12 250 3.000 - Regional Travels Return 4 800 3.200

93.952

- Fees contractor 1 19000 19.000

- Reimbursables

- Perdiem night 96 272 26.112

- Regional travel Return 32 800 25.600 - 10% contingency for reg. travels 2.560 - Conference venue & equipment

& additional premises

Lump sum 1 2500 2.500

- Refreshments & coffee breaks Per person

80 20 1.600

- Lunches (1) Per person

16 30 480

- Visibility (media, brochures,…) Lump sum 1 5000 5.000 What resources will be required for the planned activity (manpower, materials, timing etc) ?

2. Organisation of a 2-day sensitisation workshop in Abuja (40 participants)

1 Service contract 1 Service

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Notes clarifying the budget:

1/ For participants not entitled to receive per diem i.e. those whose place of residence is in the city where the workshops will take place.

2/ The travel costs and daily allowance of 2 ECOWAS coordinators may be taken in charge under the project to avoid any delay

* * *

ASSUMPTIONS :

Hypothèses What external variables could prevent the activity going ahead on _{time and/or if it does go ahead as planned, what external variables}

could stop a successful outcome (the result)?

The successful implementation of the project depends notably upon the realization of the following assumptions:

The combined effort of the ECOWAS Member States to attract investment at national level affects the overall regional investment climate and Member States are willing to adjust policies, procedures, regulations and actions to improve the overall regional investment climate.

The ECOWAS Member States’ policies and strategies to promote investment at national level are inconsiderate of the regional contagion effect as nationalistic priorities are considered superior to the overall regional interest.

IMPLEMENTATION MODALITIES: Number and types of contracts foreseen

1 Service contract for the design of the Framework and Tools for Monitoring the Investment Climate and for the organization of the Training Workshop.

In the service contract, provision will be made to possibly cover the expenses of 2 ECOWAS coordinators to accompany the experts during their mission in the region. Specific request will be required from part of the ECOWAS Commission.

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IMPLEMENTATION PLAN

Month Mois Activity Activité 1 2 3 4 5 6

1. Identification of the key determining indices of the

investment climate in West Africa

X

2. Development of a monitoring framework and tools

X X

Approval by BizClim X

3. Development of the

modalities/procedures for the monitoring exercise involving the ECOWAS Commission and

Member States

X X

Approval by BizClim X

4. Validation meeting in Abuja X

5. Finalize the monitoring system, tools and procedures

X

6. 2-day sensitization workshop of ECOWAS Commission’s staff and Member States on the use of the framework/tools & collect of information

X

7. Translating them into policy advise to support reforms in the business climate

X TIMETABLE (Main Deadlines in calendar months)

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ADDITIONAL COMMENTS FROM THE EXPERT WHO ASSESSED THE REQUEST: Commentaires et remarques de l’expert

The ECOWAS Commission is considering the possibility to undertake a complementary project, aimed at setting-up a Non-Tariff Barriers Observatory.

Such a project will not overlap the proposed assignment, as this is intended to cover the regional investment climate as a whole and not specifically the inter-regional non-tariff barriers to trade.

ADDITIONAL COMMENTS FROM THE BENEFICIARY/ Commentaires et remarques de l’expert

ADDITIONAL COMMENTS FROM THE RELATED DELEGATIONS OF THE EUROPEAN COMMISSION:

Commentaires et remarques des Délégations de la CE concernées

EC Delegation in Guinea Bissau :

1. Perhaps more emphasis could be given on EPAs

2._{How participants from each country will be selected? Via GOV or via the Private Sector (i.e.} Trade Chambers and the like)?

3. Are the translations going to be available in Portuguese language (or just EN and FR)? EC Delegation in Ghana :

1._{There is no need to develop specific indices for the ECOWAS region but rather to assess the} validity of the information provided in the context of these existing indices

2. It would be useful to foresee a period for reflection/dialogue and decision on the monitoring framework before developing the tools

3. It is not clear what is expected under the result "delivery of the state of art procedure for the monitoring exercise"

4. Based upon remarks (1), the training may be postponed until monitoring tools have been developed and tested

All elements have been taken into account into the present AIP EC Delegation in Sierra Leone:

Facilitating the effective monitoring of the investment climate in order to sustain its improvement is a necessary step to take for the ECOWAS region especially as, in countries like Sierra Leone, this

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Av. Roger Vandendriessche, 38 1150 Brussels – Belgium Tel : +32 2 777 08 68 Fax: +32 2 777 08 60 [email protected] in the long-run. EC Delegation in Nigeria:

1. The proposal is interesting and is worth being financed;

2. The EC Delegation is in close contact with the ECOWAS Commission to identify the projects that may be financed under the financing agreement;

3._{Among others, one of the projects consisted in setting up a network of chambers of} commerce at regional level. A dialogue mechanism should be established in order to help adopting, implementing and monitoring this monitoring system;

4. The EC Delegation would appreciate to be kept informed about the progress made in order to define how to best contribute to this regional initiative.

Element (3) has been taken into account into the present AIP

EC Delegation in Mali

Concernant la mise en œuvre des activités du projet - mise en place d'un cadre régional

d'investissement et d'un acte communautaire d'investissement - la DCE souhaite souligner qu'il est important de prévoir une concertation approfondie avec les pays (ou certains pays pilotes) et la commission de l'UEMOA aussi bien dans la phase d'identification des principaux éléments du climat des investissements, que dans la phase de validation.

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DECISION OF THE VALIDATION COMMITEE Implementation approved 12/11/2008

Comments and remarks from the Validation Committee

None

Implementation rejected Reason(s) for rejection

Name-Position

EC/AIDCO/C4 Signature Date

Name-Position

DG/DEV Signature Date

Name-Position

ACP SECRETARIAT Signature Date

Name-Position