Himdat Bayusuf, Education Specialist, World Bank, May 2014

Disbursement Linked Indicator Approach

Results Based Financing

Why Performance-Based Funding?Origin

Aim:• To achieve better results • Respects institutional autonomy and

leadership, and still align institutional goals with development goals

• Improve Institutional capacity to plan, decide and implement

• Increase accountability • Objective, predictable, and

transparent funding allocation

• Additionally for the WB: support a government program, pilot an approach to results-based financing, and use of government procurement rules to strengthen capacity

Traditional Funding Performance-Based Funding

Characteristics • Funding based on input factors

• Expenditures

Issues• No talk of performance of

institutions:• Quality of education• Learning/employability• Scale-up of education• Research publication and

outreach to companies• Institutions pursue their goals

Govt, WB and institutions design a government program: performance and funding agreement to establish Africa Centers of Excellence: 1. Results: measurable and within control of

institution2. Disbursements

Linked to results and Reimbursement of selected costs

3. Costs: Investment line - in budget regular salaries and other recurrent costs– in budget

How does Results-Based financing work?

Govt InstitutionWB

Financing Agreement:

- Results- Disburseme

nt- Costs

Performance Agreement:

- Same Results- Same Disb.- Same Costs

+ TA

=

The basic idea

• Govt only disburses when WB disburses => no financial risk to government

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DLI 1: Regional specialization endorsed and institutional readiness (800,000)

DLI 2: Excellence in education and research capacity and development impact (6,400,000)◦ New short term students in ACE courses of which 30% must

be regional students -$400 per student (double regional)◦ New Master students in ACE courses of which 30% must be

regional students -$2000 per student (double regional)◦ New PhD students in ACE courses of which 30% must be

regional students-$10000 per student (double regional)◦ N# of outreach “periods” for faculty, master and PhD

students-2000 per outreach period (double within the region)

Results based financing

DLR#2.5: International evaluation and accreditation of quality of education programs.◦ Amounts: 600,000 per program internationally

accredited; ◦ 100,000 per program nationally or regionally

accrediated; ◦ 100,000 per program per gap-assessment certfied or

undertaken by an international quality assurance agency;

◦ 100,000 per program for self-evaluation a satisfactory international standard;

◦ 100,000 per program description meeting international standard

DLR#2.6 Published articles in internationally recognized and peer reviewed journals◦ Amounts: 15,000 per article and 30,000 per article

with a regional co-author. DLR#2.7: Externally revenue generation

◦ Amounts: US$ 1 per externally generated revenue, and US$ 2 per externally generated revenue from the region

DLR#2.8: Meeting milestones for improved learning and research environment specified in the Performance and Funding contracts.◦ Amount per milestone: 400,000

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DLI 3 Timely, transparent and institutionally reviewed Financial Management (400,000)◦ DLI : Timely withdrawal application supported by

financial reporting for the ACE account for the period◦ DLI: Functioning Audit Committee under the university

council◦ DLI: Functioning internal audit unit for the university ◦ DLI : Web Transparency on Financial management (web-

access to audit reports, interim financial reports, budgets and annual work plan)

DLI 4 Timely and audited Procurement (400,000)◦ DLI: Timely procurement audit◦ DLI : Timely and Satisfactory Procurement Progress

Cont’d

The specific results (DLIs)Objective Indicator Minimum target (project duration)

Expected Disbursement

Unit price

Institutional readiness

Approval of MoU for regional specialization through the ACEs

Creation of ACE endowment fund Signed Govt-ACE Performance agreement with partner

agreements

800,000 800,000

Strengthen education capacity (excellence)

N# of new students in ACE courses (30% must be regional students): New PhD students New Master students New Short term students (min. 40 hours)

40 200 1,000

400,000 400,000 400,000

$10,000 $2,000 $400(x2 for regional students)

Strengthen Education Capacity & Dev. impact

N# of outreach “periods” (faculty and students working 1 months outside of ACEs)

200 

800,000 

$4,000 (x2 for regional periods)

Strengthen education capacity (excellence)

International accreditation  Gap assessment undertaken by an international QA

agency Self-evaluation undertaken following a satisfactory

international standards Regional or National Accreditation or ISO Bologna Compliant programs

Institutional and/or 2 program accreditation

Gap assessment Self-evaluation Regional accre Bologna compliant

800,000 

$600,000 (Institutional acc.)

$100,000 (per program acc. And per other quality result)

Strengthened research capacity (excellence)

N# of published articles in internationally recognized and peer reviewed journals

40  

800,000 

• $15,000 (x2 if co-authored regionally)

Strengthen education and research capacity

$ externally generated revenue  $1,200,000 1,200,000

$1 (x2 for regional revenue)

Strengthened education and research capacity

Improved teaching and learning environment as per approved proposal (institutional specific annual milestones)

1 annual milestone

1,600,000

400,000 (per annual milestone)

Financial Management

Timely withdrawal application Functioning Audit Committee Functioning internal audit Web Transparency on Financial

management

Timely submission

400,000 100,000(per annual milestone)

Procurement DLI: Timely procurement audit DLI : Timely and Satisfactory Procurement Progress

  400,000 100,000 (per annual milestone)

TOTAL     8,000,000

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Thank You –Comments / questions?

We welcome opportunities for collaboration and partnerships hbayusuf@worldbank.org and Andreas Blom,

ablom@worldbank.orgMore info on Africa Centers of Excellence on www.aau.org

WB support and analysis of Africa higher education: www.worldbank.org/afreducation

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