#1OF PLATEAU UNITY AND FAITH GOVERNMENT STATE OF NIGERIA Plateau State Development Strategy Overall Strategy SEPTEMBER 2019 BCG BOSTON CONSULTING GROUP#2HE Governor Lalong set the vision for Plateau, laying out his priorities for 2019-2023 m Pillar Key priorities Non exhaustive Sustainable economic re-birth . . Physical infrastructure development • Peace, security and good governance • Prioritize key crops and identify opportunities for processing Tap into the potential of the mining sector Develop tourism and ICT Increase IGR within MDAS Prioritize infrastructure projects with multiplier potential Redevelop Jos market Improve roads and sanitation infrastructure Building on recent gains to ensure peaceable co-existence and equitable development • Reform and restructure MDAs Sustain and increase partnership with development partners 1 Copyright © 2019 by Boston Consulting Group. All rights reserved.#3This document lays out the Plateau Strategic Agenda and implementation plan to achieve the Governor's vision 2 Copyright 2019 by Boston Consulting Group. All rights reserved.#4Chapter Overview Introduction and overview Sector diagnostics and strategic initiatives Strategy implementation . Vision and macro trends impacting Plateau Synthesis of the sector-by-sector diagnostic Overview of the strategic approach Sl. 04 Sector-by-sector analysis of key issues Identification of initiatives to address issues Initiative charters Sl. 34 Principles for implementation · Program management office best practices Reporting and governance structures Sl. 265 Pitch decks Materials to attract national and international investors • Materials to partner with international donors See additional materials 3 Copyright © 2019 by Boston Consulting Group. All rights reserved.#5Introduction Copyright © 2019 by Boston Consulting Group. All rights reserved.#6Plateau state is blessed with resources but struggling to turn them to social and economic gains Demographics Rising young population with -50% of -4m inhabitants <15 years, similar to neighboring state such as Kaduna Mid-range population density of ~155 ppl/sq. km compared to a national average of -212 ppl/sq. km Over 40 ethno-linguistic groups out of 400 ethno-linguistic groups in Nigeria Slightly less educated population (-48% completed primary school compared to a national average of -55%) Geography and resources Vast arable land and favourable soil conditions for planting exotic crops such as potatoes + Solid minerals e.g., tin, columbite, with over a century of mining experience + Potential natural tourist attractions such as the Shere Hills, Wase Rock, Kurra Falls, Jos Wildlife Park + Significant hydro- and solar-power generation potential Source: National Bureau of Statistics; Press Research; BudgIT; BCG analysis Finances Declining total revenues of -$195M in 2018 with >60% from government support - a trend similar to all northern states Higher % of tax revenues (-$32M in 2018, -16% of total) than neighboring states such as Nasarawa -2-3% share in yearly government support to states, % share similar to those of neighboring states such as Taraba >$10M Estimated revenues from donor agencies in 2018, largely from collaborations with AfDB and GIZ Economics GDP/capita of -$2k, greater than neighboring states such as Nasarawa and Taraba but -50% less than national average of $3k in 2015 Doing business relatively difficult-ranked 26th out of 36 states in an economy hampered by an unfavorable business environment 5 Copyright 2019 by Boston Consulting Group. All rights reserved.#7Plateau went through a period of violence, but since 2015 has experienced increased security Now Plateau wants to return to an era of peace, prosperity, and improved well-being for its citizens#8Global macro trends will influence Plateau's resources and opportunities in the coming decade Trends Available capital for investment Worldwide financial assets growing at 9.5x GDP, leaving PE and investors looking for opportunities Global economic slowdown Potential global economic slowdown will reduce consumption worldwide, shrinking export markets for non-essential goods Automation Increased automation worldwide will improve efficiency of production, making those who do not automate less competitive globally Climate change Increased desertification and changing weather patterns will affect grazing and crop production zones Lower oil prices Increasing use of natural gas as a substitute for oil will prevent a major rebound of revenues for oil-producing economies Implications for Plateau Plateau may be able to benefit from the increasing number of PE deals in Africa Plateau may experience reduction in demand and therefore revenue from certain minerals luxury crops (e.g., strawberries) Market entry will be increasingly difficult in food processing sectors without automation Herdsman from northern Nigeria increasingly venture south, increasing potential for land conflict Plateau unlikely to see significant increase in federally allocated funds, and will increasingly need to rely on IGR Source: qz.com, Press Research; Euromonitor; BCG analysis 7 Copyright 2019 by Boston Consulting Group. All rights reserved.#9Plateau will also be influenced by national and regional trends ון Trends Increasing debt and high Expanding intra-African trade inflation rates Ratification of Continental Free Trade Agreement by 50 African countries will ensure a single continental market for trade and free movement of capital Increasing federal debt which limits transfers from the federal government to states, and high interest rates National support for diversification Growing government support for local manufacturers and state governments to diversify country from imports through subsidies & grants e.g. CBN's CACS scheme provides funding to local rice farmers to increase production Recurring ideological conflict Increasing number of violent incidents and displaced persons due to religious and ideological differences in northern Nigeria Implications for Plateau With Nigeria's recent signature, Plateau may have tariff-free access to a huge export market but face steeper domestic competition especially in agriculture products Source: qz.com, Press Research; Euromonitor; BCG analysis Continued reduction in federal allocations will limit Plateau's budget, and a high cost to borrow will limit Plateau's ability to take on additional debt Potential increase in demand for raw materials, enabling increased agricultural exports, and potential increase in federal revenues targeted at diversifications Potential investors into Plateau may be disincentivized due to increased risks of disruption to commercial interests 8 Copyright 2019 by Boston Consulting Group. All rights reserved.#10Falling state revenues will hinder Plateau's capacity to implement the needed structural changes Plateau revenues over time ($M) 2018 Plateau State Revenues sources ($M) 415 383 211 -14% Ili... 2013 2014 2015 2016 2017 2018 143 (73%) 195 (100%) >10 (5%) 195 118 132 42 (12%) IGR Donor funds¹ Federal allocation Total revenues 1. Estimated donor funds likely greater than $10M with AFDB's $10M loan for potatoes as well as GIZ continuous investments in Plateau Source: National Bureau of Statistics; BudgIT; Environnews; CBN Statistical Bulletin; World Bank; BudgIT; King Makers; CBN Statistical Bulletin (2018); BCG analysis 9 Copyright 2019 by Boston Consulting Group. All rights reserved.#11sector diagnostic Synthesis of the sector-by- 10 Copyright © 2019 by Boston Consulting Group. All rights reserved.#12Plateau should focus its investment, development, and reform efforts to support its natural advantages Plateau should leverage its natural advantages in agriculture, mining, and tourism as focal points to concentrate investments and grow GDP Improvements in infrastructure, peace and security, and human capital targeted in these sectors can enable faster growth and sustainable development There are multiple internal reforms Plateau can pursue to improve revenue collection, governance, and financial management 11 Copyright 2019 by Boston Consulting Group. All rights reserved.#13Agriculture and mining underpin Plateau's commerce and industry, and form the primary economic pillars Approximate relative GDP contribution Agriculture Formal sector Commerce Industry Food processing, utilities, infrastructure Informal sector Yam, cassava, maize, potatoes, sorghum, rice, vegetables Agricultural products, gemstone trade, and some basic necessities Most commercial and industry ventures center on agriculture and mining, or the supporting infrastructure Mining Granite, tin, columbite, Tourism Jos Wildlife Park, Wase Rock lead/zinc, gemstones Sector Sample contributors 12 Copyright © 2019 by Boston Consulting Group. All rights reserved.#14The agricultural sector offers Plateau's greatest potential for growth Plateau has a natural advantage in growing high- demand unique crops... ... but struggles to maximize profit across the value chain Value of imported crops grown in Plateau (USD M, 2016) 88 73 Cauliflower, Broccoli, Raddish Fresh Tomatoes 63 Cut Flowers 40 Carrot & Beetroot¹ 11 Frozen Strawberries 7 Frozen Berries 1. Carrot and beetroot are the major vegetable export from Nigeria Source: Nigerian Bureau of Statistics • Productivity in major crops lags neighboring states due to limited employment of best practices (e.g., tractors, crop rotation) Farmers lack bargaining power and lose significant margin to offtakers, especially for perishable crops • Poor roads and transport options limit the ability to bring crops to markets outside the state • Lack of steady quality supply limits interest by processors and new potential markets (e.g., Shoprite in Lagos) 13 Copyright © 2019 by Boston Consulting Group. All rights reserved.#15Mining and tourism also offer opportunities to build on Plateau's natural strengths Mining + Plateau is blessed with rich mineral deposits, including most of the tin and columbite in Nigeria +Tin and columbite are highly valuable and contribute to most of Plateau's mining-related GDP Tourism + Plateau has multiple potential attractions such as rock formations, wildlife parks, cultural festivals, and volcanic hills +Government owns several sites with high potential for privatization Plateau has unclear information on reserves and concessions and is unable to directly capture value Doing business is difficult given the complexity of state and federal laws Ownership of some tourist sites is unclear, leaving many sites unsecured Underdeveloped infrastructure makes sites difficult to visit 14 Copyright 2019 by Boston Consulting Group. All rights reserved.#16Infrastructure Insufficient road construction and maintenance limit flows of goods and people • Major agricultural, mining, and tourism areas lack electricity • Uncoordinated efforts across multiple ministries minimize investment impacts Plateau needs to strengthen 3 key enablers of economic development... Peace and security • . Key economic centers suffer from insecurity, limiting investor interest Multiple uncoordinated stakeholders do not share intelligence Lack of counterparty funding prevents further training of mediators to prevent further violence Human capital Businesses and government are unable to find sufficient qualified workers Only -30% of children graduate primary school, leading to significant education gaps School and hospital quantity is insufficient, and quality is not regularly measured and tracked 15 Copyright 2019 by Boston Consulting Group. All rights reserved.#17...and reform internal practices to fully realize its potential Insufficient revenue collection • Minimal TIN and land registration • . Complex fee systems Lack of electronic payment options Poor cross-MDA coordination Lack of data sharing & reporting • Too many MDAs with overlapping mandates • Lack of coordinated planning across MDAs in similar sectors No culture of electronic record keeping Information not shared across MDAS • Gaps in budgeting & expenditure planning Budget regularly exceeds available cash • Prioritization not aligned with overall strategy or enforced 16 Copyright © 2019 by Boston Consulting Group. All rights reserved.#18In this context, how does Plateau excel economically and socially in the coming decade?#19Overall strategic approach 18 Copyright © 2019 by Boston Consulting Group. All rights reserved.#20Plateau must focus its economic rebirth on agriculture, mining, and tourism... ...while ensuring sustainable development through its infrastructure, human capital, peace, and governance investments#21The vision for Plateau will be supported by 8 strategic pillars H.E. Governor Lalong's Vision A B Agriculture Mining Economic re-birth D E Sustainable F development enablers G H 이이 State Government Revenue Physical Infrastructure Human Capital Peace & Security Governance & Finance C Tourism 20 Copyright © 2019 by Boston Consulting Group. All rights reserved.#22Backup The vision for Plateau will be supported by 8 strategic pillars - Detail H.E. Governor Lalong's Vision A B C Agriculture Mining Economic re-birth Increase value of crop sales and food processing Increase revenue from state- owned concessions and fees D Sustainable development E LL F enablers G H 이이 State Government Revenue Improve revenue capture across MDAs Tourism Develop environment for private tourism investment Physical Infrastructure Create the infrastructure needed for growth through coordinated road, energy, and water efforts Human Capital Improve the state of Plateau's human capital through investments in education and healthcare Peace & Security Improve coordination and funding for peacebuilding efforts across all peace-related organizations Governance & Finance Reform management, coordination, and data practices across MDAs 21. Copyright © 2019 by Boston Consulting Group. All rights reserved.#23Sustainable development requires time to build on natural strengths while addressing underlying policy and infrastructure issues Pre-Genocide Economic value add (USD 2010) 10 000 Low-growth but stable economy Example: Rwanda's post-conflict path to growth Genocide Destruction of infrastructure and 50% GDP decrease Peacekeeping and economic recovery Reconstruction of markets, fiscal policy reform, and growth in donor funding¹ Sector diversification Growth in PPPs in targeted sectors² and direction of donor aid toward infrastructure Hotels and business tourism expansion Airport upgraded Significant transparency improvements Government takeover of 5 000 Limited government investment RwandAir³ Agriculture production stopped Privatization policy introduced 0 1984 1989 1994 1999 Agriculture 2004 Industry Services 2009 2014 Notes: 1. Donor support first mainly used on emergency needs and to rebuild key infrastructure in stages such as schools, hospitals and rural clinics, education, roads and power; 2. Government typically invested half or more; 3. Meetings Incentives Conferences Exhibitions Center to boost business tourism 3. Continues to be loss-making Source: Press search, BCG Analysis 22 22 2017 Copyright 2019 by Boston Consulting Group. All rights reserved.#24These strategic pillars will be implemented through 35 initiatives across the state government (I/V) A B Pillars Agriculture Increase value of crops sales and food processing Mining Increase revenue from state- owned concessions and fees and improve private investment Primary initiatives A.1 Promote cooperatives and encourage farmer participation to improve access to inputs and markets and improve farmer profits A.2 Develop the strategy and overarching policies to create an environment for cooperatives and processing investments to flourish A.3 Build capacity and disseminate knowledge through partnerships and technology to improve farmer access to information and increase profitability A.4 Attract investments into the agro-food processing industry through financial and regulatory incentives to capture more of the agricultural value chain B.1 Maximize revenue collection by assessing current status of concessions, monitoring for noncompliance, and streamlining fee payments B.2 Improve attractiveness for investors through fiscal incentives, infrastructure provisions, and improved ease of doing business B.3 Maximize potential of PMDC by providing initial capital, clarifying financials, and capturing most valuable concessions in tin and columbite B.4 Improve investor-community relations by supporting community leaders and companies in the drafting and monitoring of CDAS 23 Copyright © 2019 by Boston Consulting Group. All rights reserved.#25C These strategic pillars will be implemented through 35 initiatives across the state government (II/V) D Pillars Tourism Develop an environment for private tourism investment Revenue Improve revenue capture across MDAs Primary initiatives C.1 Develop priority locations with most potential based on proximity to security and infrastructure availability C.2 Improve attractiveness for investors by offering tax exemptions and land, and streamlining ease of doing business C.3 Launch a targeted marketing strategy at specific customer segments to improve branding and positioning of Plateau D.1 Increase tax registration rates to capture more taxes through a push to bring more people into the tax net and streamline electronic payment options D.2 Reform land registration to track ownership and usage by streamlining the process and conducting a state-wide push for registration D.3 Increase transparency for cross-MDA tax payments by publishing fees online, streamlining payments into a single bill, and improving online payment options D.4 Streamline revenue collection across MDAs by completing the single online interface and minimizing cash collection 24 24 Copyright 2019 by Boston Consulting Group. All rights reserved.#26These strategic pillars will be implemented through 35 initiatives across the state government (III/V) Pillar E Infrastructure Create the infrastructure needed for growth through coordinated road, energy, and water efforts Primary initiatives E.1 Attract private sector investment for high value transport infrastructure by providing tax and regulatory incentives and offering PPPS E.2 Maximize revenue collection from existing road/vehicle streams by increasing inspection points and sharing systems across MDAs E.3 Ensure dedicated funding for road maintenance through the creation of a maintenance fund to improve critical transit routes E.4 Increase grid connections through private sector expansion of transmission lines to major economic centers via NESCO or Plateau State Energy Corporation E.5 Expand existing efforts to enable mini-grid investments through efforts to increase demand for electricity and additional prioritization of investment locations E.6 Implement planned water laws and sanitation practices by gazetting the water law and developing a local plan to address open defecation E.7 Prepare the Water Board for commercialization by investing in improved metering and capacity training E.8 Create an overall development plan and improve coordination across infrastructure MDAs through regular budgeting and funding meetings 25 Copyright 2019 by Boston Consulting Group. All rights reserved.#27These strategic pillars will be implemented through 35 initiatives across the state government (IV/V) Pillar F Human capital G Improve the state of Plateau's human capital through investments in education and healthcare Peace and security Improve coordination and funding for peacebuilding efforts across all peace-related organizations Primary initiatives F.1 Increase number of teachers and children in schools by creating mandatory free schooling, rotating teachers to rural areas, and prioritizing counterparty funding F.2 Ensure quality of teachers and curriculum by creating a tracking system and regular reporting on key KPIs F.3 Grow ICT skills through partnerships between the ICT agency, local hubs, and educational institutions to develop government ICT needs F.4 Expand access to healthcare through prioritizing counterparty funding for doctors, creating mobile clinics and rotational programs for rural areas, and leveraging SMS F.5 Ensure quality of healthcare and service delivery by creating a tracking system and regular reporting on key KPIs G.1 Improve coordination among stakeholders to reduce role overlap, improve information sharing, and align yearly priorities G.2 Ensure security of key transit routes and economic centers by increasing presence G.3 Improve mediation efforts in conflict-prone areas through prioritization of counterparty funding and local training efforts 26 Copyright 2019 by Boston Consulting Group. All rights reserved.#28These strategic pillars will be implemented through 35 initiatives across the state government (V/V) Pillar Governance and finance Reform management, coordination, and data practices across MDAs Primary initiatives H.1 Reform budget management process to reduce budget variances and ensure focus on strategic priorities H.2 Execute spend effectively and accurately by aligning processes with budget priorities H.3 Reorganize MDAs and improve collaboration and accountability through reduction in MDAs and clarification of scope and responsibility H.4 Improve transparency and data sharing by standardizing and mandating collection and publishing of data and improving online access to statistics and laws H Copyright 2019 by Boston Consulting Group. All rights reserved. 27 27#29• Goals →→ Activities → 2019 Plateau will build on institutional and business environment reforms to generate long term development growth 2020-2021 Build a foundation for Create an attractive environment 2022+ Capture investment Capitalize on growth Generate momentum with quick wins Raise IGR, improve transparency, create the necessary organizational and data environment, and improve human capital Create favorable policies, sector conditions, security, and infrastructure Highlight successes, reforms, and infrastructure growth Measure and advertise results and reinvest revenue for continuous improvement Fund the journey, improve the workforce, and enable new government efforts Enable locally-driven profit increases and growth while improving security and connectivity Drive private sector investment in agriculture, mining, and tourism Scale existing sectors and expand to new ones 28 Copyright © 2019 by Boston Consulting Group. All rights reserved.#30Goals Detail: Plateau should sequence its near-term efforts to achieve long-term, sustainable growth • • • • 2019 Build a foundation for growth Fund future investments by increasing the revenue available to Plateau from current sources Enable improved planning and execution through MDA collaboration and data sharing Maximize funds through budget management and spend reform Improve basic skills for current and future workers 2020-2021 Create an attractive environment Improve supply, scale, and profitability of existing crops Improve supply of new crops, connected to demand Ensure state control of key mining and tourism sites Strengthen infrastructure connections and safety in key economic zones and travel corridors 2022+ Capitalize on growth Capture investment • Grow agro-processing in scaled, competitive foods (e.g., potato, maize, and milk) • Reinvest to continue . Launch JV for mining exploration and attract private sector tin and columbite processors Grow local tourism around Jos with private sector partners • . infrastructure improvements Attract additional private investment to agricultural and mineral processing Expand tourism offerings geographically and to new audiences Grow education and health sectors A.2 A.3 B.1 D.1 D.2 D.3 D.4 Initiatives E.2 E.7 E.8 F.1 F.2 F.3 F.4 F.5 E.1 E.3 E.4 E.4 E.5 G.1 H.1 H.2 H.3 H.4 G.1 G.2 G.3 A.1 A.2 A.3 B.3 C.1 A.4 B.2 B.3 C.2 C.3 Continuation of successful initiatives and strategies from first three phases 29 Economic focus Enabler Copyright 2019 by Boston Consulting Group. All rights reserved.#31Donor support for capacity building and development initiatives ...with state counterparty funding to unlock critical donations H.E Governor Lalong's Vision A B Agriculture Mining D Funding the vision will require support from the state, private sector investors, and donors E F G H Private sector investment for infrastructure wherever possible, and state or federal funding when investment is not available State Government Revenue Physical infrastructure Human Capital Peace and Security Governance and Finance Privatized state assets where possible, or joint ventures and PPPs in mining and tourism Tourism Dedicated state funding for inherently governmental functions such as security increases and tax collection 30 30 Copyright © 2019 by Boston Consulting Group. All rights reserved.#32Well maintained roads between major markets GOOG Peaceful coexistence of farmers and herdsman Abundant jobs in mining, tourism, and supporting commerce 100% primary education in quality schools By implementing these efforts Plateau can reach its vision of a peaceful, prosperous home Electrification of major population areas Thriving agro-hubs with markets and processing centers Readily available quality healthcare 31 Copyright 2019 by Boston Consulting Group. All rights reserved.#33Sector diagnostics and initiatives 32 32 Copyright © 2019 by Boston Consulting Group. All rights reserved.#34Across the 8 strategic pillars, what should the strategy and priorities be to achieve the desired end state?#35The vision for Plateau will be supported by 8 strategic pillars H.E. Governor Lalong's Vision A B Agriculture Mining Economic re-birth D Sustainable development enablers H E State Government Revenue Physical Infrastructure Human Capital Peace & Security Governance & Finance C Tourism 34 Copyright 2019 by Boston Consulting Group. All rights reserved.#36Agriculture 35 35#37Goal Increase value of crop sales and food processing#38Three key questions for agriculture 2 3 1 Are we growing the right crops? How can we increase production in efficient ways that maximize profitability? How can we sell in the right markets and capture higher value for our farmers? How can we add value by processing final products? 37 37 Copyright 2019 by Boston Consulting Group. All rights reserved.#39Six major crops drive agricultural activity in Plateau Six crops take up -75% of cultivated land area... Size of cultivated land area ('000 Hectares) ...with yam generating by far the most revenue 22% 7% 11% 15% 24% 732 1,755 2018 Total Revenue (Bn NGN) 13% 6% 6% 12% 13% 100% 12% 8% Yam Potato Maize Cassava Sorghum Rice Others¹ Total 41% 20% 100% Yam Potato Maize Cassava Sorghum Rice Others¹ Total 1. Includes tomato, cowpea, cocoyam, millet, onion, okro, benniseed, groundnut, and cotton. Revenue estimate is approximate and does not include cotton, okra, cocoyam. Source: NAERLS, FAO, AfDB 38 Copyright 2019 by Boston Consulting Group. All rights reserved.#4050 50 100 150 Plateau's production efficiency trails other Nigerian states leading to higher cost per ton produced Cost of Production Index: NGN per ton, indexed to 100 North Central Plateau 200 ✓ ✓ ◇ LEXXXOO XXXXX Π Ο ΠΟ Yam Cassava Maize Rice Sorghum 100 = 46K 36K 85K 126K 84K NGN/ton Best -76% -60% -46% -42% -25% practice¹ 1. Cheapest producer, cost as a percent of Plateau's Notes: Data unavailable for potato, Fonia, Groundnuts, Cotton, and other crops of current economic value Source: NAERLS, Stakeholder interviews North East/West Other states 100 Plateau = Likely contributing factors: Widespread use of low-quality seeds High price of good quality fertilizers Insufficient roads to connect rural farmers to high-quality seeds & fertilizers Relatively low mechanization rate (tractors, planters, rollers etc.) • Low water supply (e.g. dams) during dry seasons shortens cultivation season - unpredictable yield • Lack of adequate training on best practice farming methods (currently 1 trainer to 5000 farmers) 39 Copyright 2019 by Boston Consulting Group. All rights reserved.#41Furthermore, Plateau is currently overly focused on crops that yield less profit Crop margin per Kg vs. proportion of cultivated land area (2018) Margin per kg (NGN) 600 400 200 0 0 5 LO Yam Increasing the cultivation of high-revenue, more commercial crops such yam and rice can improve profit Yam Potato Rice Sorghum Maize Sorghum • Rice Potato Maize 10 15 20 Source: NAERLS, FAO, AfDB Notes: Data unavailable for potato, Fonia, Groundnuts, Cotton, and other crops of current economic value 25 Plateau as-is Plateau at best-in-class margin (Nassarawa) × Size: Estimated total profits (Bn NGN) Cassava Cassava 30 % cultivated land area covered Significant land dedicated to cassava which could be used for more profitable crops 40 40 Copyright © 2019 by Boston Consulting Group. All rights reserved.#42• Strawberry • Celery & cucumber ⚫ Lettuce & cabbage . • Eggplant Zucchini Beetroot • Carrot Fruits & vegetables grown in Plateau have large potential markets outside the state Fruits & vegetables predominantly grown in Plateau Of these crops, tomato has the highest internal market demand Proportion of imports (%) Broccoli & Cauliflower • Radish & Soursop • Tomato & pepper Currently low-scale production by small- scale farmers - lack of institutional support or intervention programs Source: Nigerian Bureau of Statistics, Stakeholder Interviews Tomato Paste & Sauces 67 Cauliflower, Broccoli, Radish Tomatoes 100 15 1. -10- 0 7 9 10 Cut Flowers Carrot & Beetroot Frozen Strawberries Of these crops, only carrots & beetroot are exported from Nigeria (in minimal scale) Frozen Berries Fresh Strawberries Fresh Berries 41 1 Total Copyright 2019 by Boston Consulting Group. All rights reserved.#43Current off-taker model empowers middlemen In current model, up to 80% of potential revenue could be lost to middlemen Illustrative breakdown of cassava value chain (NGN) Distressed sale for cassava, a high storage-need crop that loses value after 24 hours with improper storage 104 10% 10% 70% 10% Production cost Farmer margin Farmer revenue Transport Middleman margin Source: Stakeholder interviews 520 NGN/kg Market price (Nassarawa) 42 42 Copyright 2019 by Boston Consulting Group. All rights reserved.#44There is an opportunity to improve the supply chain increasing consistency and transparency in the off-taker model Current sales model ש שו વ ש Potential improved sales model Middlemen Smallholder farmers Middlemen Final demand (e.g grocery chains, hotels, processing companies) Smallholder farmers Institutional off-taker Final demand (e.g grocery chains, hotels, processing companies) Implications: High potential for cartelization between middle men Limited farmer negotiating power Unpredictable supply to markets Loss of revenue & high wastage for farmers unable to find offtakers Institutional off-taker can "regulate" the market, avoiding cartelization practices both by acting as a buyer of last resort and by publicizing (NON MANDATORY) reference prices, empowering farmers with pricing knowledge Source: Stakeholder interviews 43 43 Copyright © 2019 by Boston Consulting Group. All rights reserved.#45Plateau lacks significant processing capabilities, but also faces several challenges with setting up processing plants Source: Stakeholder interviews k $ Infrastructural challenges & high costs • • High set-up costs, inconsistent water & power supply deter the set-up of processing plants across Nigeria (e.g. Erisco and Dangote Industries postponed production of tomato paste due to high costs) Lack of quality roads to connect processed goods to major markets will further reduce margins Unpredictable and non standardized supply • • No large-scale farming for industrial inputs - sector is made up of smallholder farmers that lack the production know-how and tools to supply in a standardized scale High production variability due to inconsistent water supply, lack of storage etc. Complexity of doing business Historical lack of peace & stability has led to the exit of some food processors from Plateau State: Vegro (potato processing) and Tomapep (tomato paste processing) Difficulty of doing business (e.g. land registration process) and lack of detailed state development masterplan for industrial areas could de-motivate investors Lack of a targeted strategy to attract investors • Current investor-attraction strategy includes adhoc presence at trade fairs and case- by-case tax rebates, but no single strategy to attract & incentivize processing plants 44 Copyright 2019 by Boston Consulting Group. All rights reserved.#46Additionally, state effort is hampered by multiple agencies that execute similar projects and compete for funds, leading to duplicated efforts Program MDA Funding Source Farming mechanization (tractors, land-clearing etc.) . Ministry of Agriculture • FADAMA ASTC Seed & fertilizer access Irrigation & water supply Farmer training Rural access roads Source: Stakeholder interviews Ministry of Agriculture • FADAMA PADP ASTC Ministry of Agriculture • Government FADAMA • World Bank FADAMA PADP ASTC • Ministry of Agriculture Ministry of Works FADAMA RAAMP D Currently, there is no overall agriculture sector strategy document to coordinate efforts, leading to duplicated efforts across MDAs 45 55 Copyright 2019 by Boston Consulting Group. All rights reserved.#47How does Plateau increase GDP from its agriculture sector?#48-Benchmark-⚫ Objectives- ☑ A Four initiatives to improve agriculture A.1 40-0-0-0 A.2 A.3 A.4 Promote cooperatives and encourage farmer participation Improve access to markets and reduce cost of inputs to address the problem of small farm inefficiencies by leveraging collective power of cooperatives Develop the strategy and the overarching policies Enable the implementation of agro-business ecosystem improvement initiatives by setting policies that create an enabling and fair environment Build capacity and disseminate knowledge Increase amount of resources available to educate and empower farmers to adopt innovations by partnering with development organizations Incentivize knowledge sharing between farmers to drive adoption at scale Attract investment into agro-food processing industry Improve attractiveness of various segments of agribusiness value chain to investors through financial and regulatory incentives (tax breaks, trade agreements etc.), stabilizing supply and improving ease of doing business Nepal Kenya Malawi China Malaysia India 47 Copyright 2019 by Boston Consulting Group. All rights reserved.#49A.1 Plateau can help farmers achieve scale through incentivisation of cooperatives... Provide quality, low cost inputs and services to cooperatives... Access to subsidized quality seedlings (with variety) Improved access to subsidized, quality fertilizer ...that will enable them to collectively improve their wellbeing Improved productions levels ↑ Potential additional revenue for the government H Improved access to water development projects Improved cost sharing for machinery rental Recommended priority crops/produce Priority 1 ⚫ Potatoes • Maize • Rice Yam Source: Client, Farmer, Off-taker, Expert interviews Priority 2 Tomatoes Priority 3 Livestock • Cabbage Milk • Carrot Improved access to larger markets Improved security (from increased collaboration in communities) • Longer-term Strawberries Soybeans Cut flowers 48 Copyright 2019 by Boston Consulting Group. All rights reserved.#50A.1 ...and by creating an enabling environment for cooperatives to flourish Free and voluntary membership Autonomy and independence Intercooperation Sense of community & knowledge sharing Education and training Government support on cost of inputs Fraud prevention Raise awareness and build trust • Bottom up approach: Cooperatives should be open to anyone interested in using its services and capable of assuming their responsibility as a member and not imposed on them • • Cooperatives should be autonomous, controlled by their members, who define the policies and make management decisions Agreements with other institutions, including with the state, must ensure democratic control by the cooperative members and its autonomy Cooperatives should work together to serve their members more effectively and strengthen the cooperative movement Cooperatives should be encouraged to work for the sustainable development of their communities Cooperatives should be encouraged to inform the general public and be opinion leaders about the advantages of cooperation Plateau should support cooperatives in providing training to members on farming practices and to those leading cooperatives on good management practices Plateau should partner with the cooperatives to provide low cost quality inputs from a menu of benefits to choose from (e.g. funding alternatives for members, road construction, irrigation access) Plateau should ensure that financial institutions serve as a 3rd party intermediary for all financial transactions between coops, private sectors, MDAs etc., to prevent against misappropriation of funds Plateau should build the trust of farmers in these cooperatives by keeping to commitments and providing pledged services to farmers as promised and on time 49 Copyright 2019 by Boston Consulting Group. All rights reserved.#51Cooperatives, government and financial institutions will play key roles in making cooperatives a success Co-ops Adhere to contract terms and consistently meet supply obligations Clearly articulate needs from the government and identify issues in process Support other cooperatives Share information Govt. Set up legal framework Provide implementation support and leadership in setting up co-ops Provide subsidized inputs Develop required infrastructure to support growth Provide linkages to key markets Fls1 Monitor financial transactions and activities of co-ops to guard against fraud and non-compliance with contracts Provide access to low interest loans 1. Financial institutions 50 50 Copyright 2019 by Boston Consulting Group. All rights reserved.#52A.2 Coordination between MDAs and key stakeholders will be critical to implement new policies and achieve success Donors Infrastructure MDAs Implementation of sector policy and strategy Cooperative promotion and development plan Information sharing and communication plan Investor attraction plan o-i-o Agriculture MDAs Local business communities 51 51 Copyright 2019 by Boston Consulting Group. All rights reserved.#53A.3 Plateau can also empower farmers with knowledge and information through the use of technology... Leverage mobile tech. to empower farmers 01:06 123 Quick codes for commodity price information¹ 01.10.2018 Farmers text "Rice" to a *xxx# number and receive the current market prices² instantly Unlock 10 150 41 phi 7 pors 16 OG 25 2 57 8 tuv 0 3 Moo 6 wxyz # Unique codes to claim benefits¹ Farmers receive a unit code via text on their mobile, which they can use to purchase subsidized fertilizer from a govt. contracted distributor Govt. can track and monitor how fertilizer is distributed. This will increase transparency Bulk/Group messaging for knowledge sharing Farmers receive text messages weekly tips to help improve productivity Farmers can post any questions they have in a group message and get advice from other farmers 1. Extension workers will be key to teach the farmers how to use service; 2. Price received will serve as a benchmark to farmers in when negotiating with middlemen 52 62 Copyright 2019 by Boston Consulting Group. All rights reserved.#54A.3 and broader partnerships to build lasting agricultural skills Business Community Adapted curriculums at schools e.g., processing techniques for agro-food, sustainable farming practices, business basics $ NGOS State Government MDAs Secondary - Schools Internships e.g., at processing plants to provide a path to employment Training programs e.g., for seed growing and demonstrating mechanization advantages 53 53 Copyright 2019 by Boston Consulting Group. All rights reserved.#55. A.4 Sufficient scale Consistent crop supply • . Quality crops Transportation options from farm to processor Assured security Reduced incidents of violence Reduction of loss of life and property ☑ . . Connected infrastructure Constant power supply Quality roads to markets and airport Clean water supply • Attractive incentives Tax exemptions Subsidized energy supply Scaling crop production, improving infrastructure and security, and providing other incentives will enable investments into agro-processing • Discounted land 54 Copyright © 2019 by Boston Consulting Group. All rights reserved.#56Benchmarks suggest clear practices that Plateau state should adopt and avoid in the creation of agricultural cooperatives Practices to adopt Ensure responsibility for bolstering the sector allocated to a dedicated entity at the top of the ministerial structure (Ministry of Agriculture), with capable resources and adequate budget • Build partnerships with universities to support provision of training to cooperatives • • Ensure availability of funding alternatives for cooperatives (subsidized inputs, offers directed at the cooperatives by financial institutions, NGOs etc.) Publicly recognize/acknowledge successful farmers/cooperatives to encourage continued participation Promote participation of cooperatives in legislative and political processes affecting the sector Practices to avoid ⚫ Top down enforcement of mandatory participation in cooperative ⚫ State intervention mechanisms in the sector that reduce cooperatives' independence or autonomy • Lack of dedicated resources or in-field support to cooperatives • One size fits all approach and not taking into account the differences between cooperatives • Lack of rigor in monitoring the application of the Law, and lack of conflict resolution mechanisms • Not taking advantage of the support potential of NGOs to fund projects and cooperatives' capacity-building 55 Copyright © 2019 by Boston Consulting Group. All rights reserved.#57Agriculture Detailed initiatives 56 56#58Kenya Nepal A.1 Promote cooperatives and encourage farmer participation (I/II) Initiative objective Standardize supply and improve access to markets Reduce cost of inputs for farmers Improve quality and volume of productions Actions A.1.1 Support the establishment of cooperatives to achieve scale benefits Dedicate specific resources for distribution to farmers through cooperatives to incentivize joining. e.g. subsidized rental cost of machinery or cost of fertilisers should be larger for cooperatives than individual farmers; access to low cost credit, technical extension advice and some degree of price guarantee for farmers in co-ops etc. Cooperatives should be given the opportunity to pick their preferred incentive packages Launch contract farming schemes with co-ops to develop markets for farm produce Identify Institutional off-takers, aggregators etc. and size up demand Obtain buy-in of key stakeholders (aggregators, farmers, co-ops etc.) Define eligibility criteria for co-ops to join scheme (minimum vol., quality etc.) Select and train farmers on how to consistently meet production targets Design and negotiate terms of contract (Pricing, Freq. of supply etc.) Create a pilot program for cooperatives to demonstrate value of collective negotiating, access to inputs at scale, and a streamlined supply chain for off takers Establish a small committee (approx. 8-12 farmers) representative of farmers that show interest in being a part of a co-op and organize meeting to ascertain level of interest in order to identify farmers interested in joining co-op Define membership structure, associated fees (if any) and mode of operation of co-op Note: PADP - Plateau Agricultural Development Program; SGS: Secretary of Government of the State Initiative Lead A.1.1. Ministry of Agriculture, Ministry of Commerce and Investment, Office of SGS A.1.2 Ministry of Agriculture Deliverables Recommended timeline Draft business plan for co-op with prioritised list of incentives • 4 months List of Aggregators, off-takers and volume of demand defined Eligibility criteria defined Farmers join scheme and are trained Draft contract Members identified and committee created Initial list of interested farmers 1.5 months <1 month 6 months 3 months 1 month ⚫ 6 months 57 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved. 迪#59Malawi A.1 Promote cooperatives and encourage farmer participation (II/II) Initiative objective Standardize supply and improve access to markets Reduce cost of inputs for farmers Improve quality and volume of productions Actions Register co-op with Ministry of Commerce to open access to benefits Develop start up guide on how to start an agricultural cooperatives Run pilot: Test and iterate initiative with small set of (-10-50) farmers Demonstrate success to donors and expand and scale over time A.1.2 Launch/Boost programs to improve quality of inputs e.g., Seed growing, Fertiliser subsidy programs etc. • • Create seed growing certification schemes and identify method and areas of implementation to improve farm yields Partner with co-ops/farmers to grow new seed varieties for Potato, Yam and Maize and as a reward, supply free fertilisers and support services (Trainings, machinery etc.) to the farmers Identify seed traders to introduce newly released certified seeds to farmers e.g., Romery, Bicco-agro products Ltd. • Train farmers on how to produce and store seeds Expand on fertiliser subsidy programs to entice participation Run pilot: Test and iterate initiative with small set of farmers Stakeholders • • • Farmers, Seed traders Community leaders MDAS: FADAMA, PADP, ASTC, PAMSCO BOI, World Bank, AfDB, Bank of Agriculture - Note: PADP Plateau Agricultural Development Program; Deliverables Initiative Lead A.1.1. Ministry of Agriculture, Ministry of Commerce and Investment, Office of SGS A.1.2 Ministry of Agriculture Co-op registered with Min. of Commerce Start up guide on agricultural cooperatives Finalized plan ready for implementation Recommended timeline • 1 month 2 months 6 months List of interested co-ops/farmers 2 months • List of key seed traders 2 months Farmers converted to seed growers Increased subsidies on fertiliser Finalized plan ready for implementation 4 months 12 months 6 months Metrics . Resources Funds to purchase seeds from traders Funds to run training program (e.g. from Donors such as GIZ, AfDB) • No. of farmers signed up to co-op Percentage increase in revenue for farmers Percentage reduction in average cost of production Potential quick-win 58 Copyright 2019 by Boston Consulting Group. All rights reserved. 迪#60Malawi A.2 Develop the strategy and the overarching policies (I/II) Initiative objective • Enable the implementation of agro-business ecosystem improvement initiatives by setting policies and guiding principles that create an enabling and fair environment Position Plateau state as an Agro-hub Actions A.2.1 Develop overarching strategy to set priorities and targets for the sector Key elements should include developing priority crops (Potatoes, Maize and Yam etc.), protecting price for farmers, attracting investors, developing basic infrastructure, enhancing sustainable mgmt. of resources; improving access to credit (see sample strategy doc. in backup folder) Develop one agricultural policy that fosters: A.2.2 Fair, mutually beneficial relationships across the agribusiness value chain: PADP to improve fair pricing though widespread dissemination of information on market prices to farmers on a regular basis, in order for them to make informed sales decisions (See initiative 3.3) . Clearly define objectives of MDAS (PADP, Min. of Agriculture, FADAMA etc.) and ensure sufficient coordination between them through quarterly meetings, where they share information on farmers, progress on initiatives, donor support needs etc. and identify areas to support each other Develop framework and terms to guide enforcement of agreements drawn up under Contract Farming or any other contracts Ensure financial institutions serve as 3rd party intermediary for all financial transactions between MDAs, distributor and farmers to reduce corruption Deliverables Initiative Lead Ministry of Agriculture Clear priorities and targets defined for sector Agricultural policy defined and approved PADP provides information on prices, markets, extension services etc. to farmers Document detailing out key objectives, obligations and mandate of MDAS Terms for violation of contract and guiding principles for enforcement identified - Note: PADP Plateau Agricultural Development Program; BOI - Bank of Industry; NDB - National Development Bank; MDB - Multilateral Development Bank; FI - Financial Institution Recommended timeline • 2 months 6 months • 1 months • 3 months 2 months 59 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved. 迪#61Recommended timeline 6 months A.2 Develop the strategy and the overarching policies (II/II) Initiative objective • Enable the implementation of agro-business ecosystem improvement initiatives by setting policies and guiding principles that create an enabling and fair environment Position Plateau state as an Agro-hub Actions A.2.3 An enabling environment to attract investors: • • Introduce exemptions from sales tax, property tax, right of occupancy fees, land use charge, business premises registration and per annum renewal fees; Provide access to subsidized energy supply Work with BOI, GIZ (or other DFIs/FIs) to improve access to equity and debt financing including favorable interest rates, non-collateral loans etc. Develop incentives for farmers to join cooperatives such as exemptions from tax, access to low cost, quality inputs, subsidized purchase/rental of machinery, access to information and advisory services, access to cheap credit etc. A.2.4 Development of infrastructure to improve accessibility: Identify investment opportunities for developing agro-hubs, primary supporting infrastructure such as roads, storage and freezing facilities based on PPP model, and reach out to investors (e.g., 30 year concessions to manage storage facilities, supported by a 3-5 years sale tax exemption window and subsidized cost of installation) Offer subsidies on cost of cold chain transportation Stakeholders • . . • • Ministry of Agriculture FADAMA; PADP; RAAM, ASTC Ministry of Commerce and Investment Ministry of Education BOI, GIZ, World Bank, AfDB, Bank of Agriculture PLASMEDA Deliverables Initiative Lead Ministry of Agriculture Policies put into effect and access granted to investors Commitments from DFIs/Fls to provide financing to investors List of incentives to encourage farmers to join co-ops PPP model to develop and operate agro- hubs and supporting infrastructure defined Resources N/A Note: PADP - Plateau Agricultural Development Program; BOI - Bank of Industry; NDB - National Development Bank; MDB - Multilateral Development Bank; FI - Financial Institution • • 12 months 3 months 6 months Metrics • Clear and concise Agricultural policy document Number of defined investor attraction packages (e.g., land, tax, energy for processors) 60 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved. 迪#62China A.3 Build capacity and disseminate knowledge (I/II) Initiative objective Increase amount of resources available to educate and empower farmers Incentivize knowledge sharing between farmers to drive adoption at scale Leverage technology to share knowledge with larger groups of farmers more easily Actions A.3.1 Work with secondary school trade programs to adapt curriculum to include processing techniques for Potato, Maize and Yam (and other priority crops) Obtain current curriculum and update with new content on techniques for processing prioritized crops Get new curriculum approved by Ministry of Education and roll out in schools A.3.2 Partner with companies (e.g., NASCO, ASTC) to provide trainings and internships to students . • Identify list of companies and target schools willing to participate Develop training programs for processing key crops (Potatoes, Yam, Maize...) to increase the availability of labor for the industry Design and setup internship program (Duration, department rotations, number of students etc.) A.3.3 Provide information on markets, extension services and price to farmers Leverage technology to share information: Create quick codes that farmers can text to get commodity prices Deliverables Initiative Lead A.3.1, A.3.2 Ministry of Education A.3.3, A.3.4 Ministry of Agriculture Recommended timeline 2 months New curriculum approved by Ministry of Education • • List of interested agro-processing cos. and schools with signed agreements Training program developed and rolled out Internship program developed and rolled out in schools • Messaging service developed 4 months 6 months 6 months ⚫ 3 months • Use online tools to create text messaging service to deliver tips on best practices to farmers (e.g., BulkSMS.com, multitexter.com) Work with ASTC and FADAMA to create and share videos with customized and actionable content on, for example, how to improve productivity Leverage Farmers' Associations, co-ops, extension service workers, and other channels to ensure widespread awareness and adoption of communication/knowledge delivery channels Training videos developed 9 months • Marketing campaign rolled out state-wide 3 months 61 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved. 迪#63A.3 Build capacity and disseminate knowledge (II/II) Initiative objective Increase amount of resources available to educate and empower farmers Incentivize knowledge sharing between farmers to drive adoption at scale Leverage technology to share knowledge with larger groups of farmers more easily Actions Identify ways to incentivise increased sharing of information and best practice techniques through group messaging services. e.g., free use of tractors for 1 hour for every hour spent teaching other farmers A.3.4 Partner with Seed Growers, ASTC, FADAMA etc. to build a training program that will offer farmers Seed growing certification and convert them to seed growers (see initiative 1.3) Stakeholders Ministry of Education Ministry of Agriculture FADAMA ASTC NASCO . PADP PAMSCO Deliverables Initiative Lead A.3.1, A.3.2 Ministry of Education A.3.3, A.3.4 Ministry of Agriculture Recommended timeline List of incentives to drive knowledge sharing Seed growing training program established Resources • Funding for airtime, initial seeds, internship and training programs (from World Bank, GIZ, AfDB etc.) • 1 month 6 months Metrics • Percentage of target schools with new curriculum Percentage of students participating in training/internship program Rate of usage of mobile platform Potential quick-win 62 42 Copyright 2019 by Boston Consulting Group. All rights reserved. ש#64A.4 Attract investment into agro-food processing industry (I/II) Initiative objective Improve attractiveness of various segments of agribusiness value chain to investors Actions A.4.1 Identify target investors (Private sector organisations, NGOs, Fls etc.) with regional ambition. For example: Grand cereal: Manufactures of cereals, animal feed etc. • Pioneer milling company: Mills and processes brewing raw materials • NASCO - manufactures cereals, detergents etc. (FMCG Co.) Initiative Lead A.4.1, A.4.3, Ministry of Agriculture Deliverables A.4.2, A.4.4 Ministry of Commerce and Investment Recommended timeline • List of target investors for each action • 2 months A.4.2 Market new incentives to target investors to consider entry/further Malaysia • investment in Plateau state (see long list of incentives in initiative 2) Create a promotion plan for agro-food processing industry for Potatoes, Yam and Maize. (Market Plateau state as the Agro-hub) A.4.3 Build up infrastructure to improve access to supply . Confirm viability of locations for agro-hub(s) to improve market access to farmers and processing companies; Develop a business plan and submit to Ministry of Agriculture and World Bank for approval Release counterparty funding to World Bank investment proposal on Agro-hub development ($4.8m - 8% of the required $60m cost) Prioritize basic infrastructure connectivity such as power supply and road for extension to agro-hubs Push/lobby federal government to develop railway networks Build up special area with adequate security for residential and commercial activities, where processing plants can be set up and its employees can live Build agro-hubs, logistic/truck terminals, storage and freezing facilities especially near major agro-hub through PPPs (Tripartite agreements between Private org., Government & Farmers) - See initiative E1 Marketing campaign to attract investors rolled out Locations for hubs validated; Business plan developed and approved Funding to meet conditions of World Bank investment acquired List of priority infrastructure developments to support agro-hub Storage and freezing facilities built in strategic locations close to districts • Ongoing 4 months 6-12 months 6 months • 24-36 months Potential quick-win 63 迪 Copyright 2019 by Boston Consulting Group. All rights reserved.#65A.4 Attract investment into agro-food processing industry (II/II) Initiative objective Improve attractiveness of various segments of agribusiness value chain to investors Initiative Lead A.4.1, A.4.3, Ministry of Agriculture Actions A.4.4 Improve ease of doing business Integrate the One-Stop-Shop under the Office of the Governor: Prioritize implementation of the One Stop Shop (OSS) by the Office of the Governor, by holding the Ministry of Commerce accountable for ensuring all key state and federal MDAs are integrated into OSS in a timely manner Ensure the Ministry of Agriculture works with Ministry of commerce to streamline all registration processes Identify and offer investment incentives such as: Exemptions on sales tax, property tax, right of occupancy fees etc. Access to land at competitive prices and free land registration Subsidized tariffs for power through NESCO Partner with PLASMEDA to help provide attractive financing options to SMEs needed to support growth of the agriculture sector Work with Ministry of Agriculture to identify primary infrastructure to increase agro-food processing: Consistent and sufficient power supply (see initiatives on Energy) Quality roads and sufficient security Stakeholders ASTC, FADAMA, PADP • Grand Cereals, NASCO • PLASMEDA Ministry of Commerce and Investment; Ministry of Justice • • Plateau State High Court of Justice Deliverables • One Stop Shop functioning effectively • A.4.2, A.4.4 Ministry of Commerce and Investment Recommended timeline 3 months Resources . Counterparty funding to World Bank investment proposal Funding to run promotion campaigns Metrics % increase in investments along agribusiness value chain Number of newly established businesses Potential quick-win 64 Copyright 2019 by Boston Consulting Group. All rights reserved. 迪#66Agriculture Case studies 65 65#67Small Farmer Agriculture Cooperative in Nepal provided significant help to farmers to access finance, develop their business & improve their livelihoods AContext Women-led Small Farmers Agro Cooperative Limited • Est. in 2004, -2000 members • Provides financial & non-financial services to its farmers Affiliated with 2 institutions NACCFL1: Market access, capacity building & networking SFDB2 Financial services What did the cooperative do? Adopted strict criteria for membership • Entry fee requirement & must be a community member Ability to save a certain amount monthly Strict screening of loan applications at each org. tier before approving low interest rate loans Market linkage with NACCFL¹ provides tailored support e.g. • Connecting farmers to buyers e.g. via a marketing dept. that helps connect to farmers to marketers in different cities in Nepal Technical & skills based training e.g. business plan development SFDB² formed with group investments from co-op, GoN³, other commercial banks helps fulfill credit needs • Mobilizes capital, savings & loans from comm. banks, donors, GoN³ Key successes Access to micro loans which helped diversify rural livelihoods, increase incomes & business development Won national award amongst 350 co-ops in the country Proper management of financial resources 100% loan repayment Nepal Developed sustainable culture of savings & loans investment Efficient governance system Structured in a 3 tiered hierarchal organization Promotes democracy, consensus & cohesion within the group Learnings for Plateau State Ensure strict criteria to become member of co-op E.g. using financial buy-in & ability to save monthly criteria creates sense of responsibility & ownership Target most deserving farmers by doing surveys in community Form partnerships with financial & non-financial organizations, DFIs To support co-ops grow, help farmers scale up and mobilize financial resources Hierarchal organizational structure for efficient decision making Ensures proper screening (e.g. loan approvals & other big decisions) Control of membership: ensure any break of contract will result in restricted access to benefits in the future 1. Nepal Agricultural Cooperative Central Federation Limited and umbrella organization, 2. Small Farmers Development Bank, 3. Government of Nepal Source: BCG Analysis 66 Copyright 2019 by Boston Consulting Group. All rights reserved. 迪#68Kenya used contract farming to find markets for local products & ensure fair pricing חויחוי • Context A growing but fragile potato ecosystem . Seed availability & quality a challenge for farmers Processors are unable to source sufficient quantities due to low yields Farmers have difficulty finding markets & fair prices for potatos What did Kenya do? Launched contract farming scheme through the National Potato Council¹ EAPC² acts as middle-man between farmers and potato processors EAPC² engages groups of farmers on a contractual basis to supply a set amount of potatoes by a specific date for a fixed price • All agreements require NPC1 approval to ensure price fairness Set price is maintained, even in the case of market fluctuations Farmers receive free high-quality seeds, fertilizers, and support services from EAPC² & in some cases directly from potato processors Emergence of direct out-grower schemes among potato processors • Some Kenyan potato processors introduced their own contract farming in to secure stable supplies - Similar to the EAPC² scheme, but cuts out the middle-man as well as the government supervision (likely offers a higher price) Key successes Easier access to industrial clients Kenya Farmers get access to markets & potato seed varieties required by processors Over 5 000 potato farmers have already signed up for the EAPC² contract farming scheme, and more than 22 000 are expected by 2020 Lower risks of farmer exploitation through NPC's¹ involvement Improved stability and higher revenues Farmers assured of stable sales and benefit from higher prices - Prices offered by processors per kg are twice higher than open-market prices (Sh45 vs Sh22) Learnings for Plateau State Introduce contract farming & a middle-man agency to monitor fair pricing Ensure adequate dissemination of info. on prices to enable fair pricing Leveraging technology to share information • Incentivizing sharing of information between farmers Encouraging & supporting contract farming schemes, which give visibility to farmers and to processors Provide a clear and fair contractual relationship between stakeholders by setting appropriate policies • Mechanisms to guarantee fair prices for farmers and processors 1. A Public-private organization focused on developing the potato sector 2. East African Potato Consortium Set up by the NPC with international partners (AGRA and Grow Africa) to handle contract farming Source: BCG Analysis 67 Copyright 2019 by Boston Consulting Group. All rights reserved. ש#69Malawi launched a certified seed growing program to improve yields and incomes across the legume value-chain AContext Low seed quality hinders the development of the legume/beans sector Small-hold farmers rely on saved up seeds, which produce inconsistent/low yields Low seed volumes and demand deter seed sellers from introducing new varieties What did Malawi do? Developed a wide partnership with farmers to propagate new seed varieties • • Included small-hold farmers in seed production by working with NASFAM¹ Converted some small farmers into seed growers, by giving them certified seeds on credit for reproduction (for the first 2 years) These growers were able to produce their own certified seeds and sell them to seed traders for a wider profit (Kw350 vs 250 per) Trainings and demonstrations were provided to farmers on how to produce and store high quality seeds Created linkages between farmers and seed traders to market new varieties The farmer subsidy program² worked with seed traders to introduce any newly released certified seeds to growers and regular farmers Key successes Improved farmers' yields and incomes Yields increased by 25-30% in the areas of implementation Malawi For certain crops such as groundnuts, yields per hectare doubled Incomes among small-hold farmers using certified seeds increased by 30% Boosted the market of certified seeds Certified seed sales and trade increased by -15-20% annually More than 395 000 farmers were able to access certified seeds on a consistent basis Learnings for Plateau State Engage with key stakeholders to scale up adoption • Include small farmers as part of the solution to scale up the adoption of new farming techniques/inputs ⚫ In partnership with Universities, ASTC, etc. convert some small farmers into seed growers and link them to cooperatives Ensure the creation of positive feedback loops • Accompany market players in their efforts to become self-reliant during the post-launch phase Ensure improved revenue of seed growers is used for the right purposes such as purchases more seeds to enable sustainable growth 1. National Smallholder Association of Malawi, the largest farmer organization in the country 2. A national input support program that provides farmers subsidized seeds and fertilizers Source: CGIAR; ICISAT; BCG analysis 68 Copyright 2019 by Boston Consulting Group. All rights reserved. ש#70The Malawi government created a national agriculture policy to address issues arising from having various incoherent sub policies that were uncoordinated A Context National Agriculture Policy Following country's drought experienced in 2004 various policies were developed Several policies for various sub-sectors • Resulted in lack of coordination & coherence Led to inadequate investments in some sub-sectors & policy reversals What did Malawi do? Led to development of a single national agricultural policy Government created a national agricultural policy • • To improve coherence across range of sub-sector policies To better coordinate their implementation Engaged with various stakeholders for buy in Previous policy adapted dual approach • Food self-sufficiency was main objective for smallholders Economic growth was main objective of medium-large scale farms New policy recognizes need for more heterogeneous approach e.g • Now all farmers will benefit from public investments Help make all farmers move toward goal of moving beyond self- sufficiency for just food to commercial farming Source: BCG Analysis Key successes Malawi Various stakeholders (e.g. private sector & donors) have bought in Although new, a lot of momentum surrounding the single vision Some donors referenced it to design new funding & programs • Government departments already embedding it in their budgets Having clear priorities & targets at national level makes it more achievable || || || E.g. An entire chapter dedicated to implantation plans & specific parties who can take on ownership Government signaling it's clear about where it needs investments to grow sector Learnings for Plateau State Establish a clear & comprehensive Agriculture policy that will Help ensure focus on priority crops for processing • • Ensure several policy objectives are not conflicting Help with better coordination for implementation Improve communication and data sharing between MDAs Enhance sustainable management of agricultural resources Ensure positive contribution to agricultural development and to all agricultural players across value chain 69 Copyright 2019 by Boston Consulting Group. All rights reserved. ש#71China restructured its TVETS to prepare future agricultural workers Context China's agriculture industry declined between 1980 and 2008, as the proportion of planting shrank even though that of fishery & forestry increased 2 major factors drove this situation: Declining number of farmers: -200M farmers had dumped farming in favor of formal employment in cities and towns Shortage of skills: Current stock of farmers were unfamiliar with new agricultural technology, which hindered further employment What did the Chinese government do? Chinese government revised TVET's curriculum to focus on 3 major areas: Practical student trainings on present job demands • • ~1/3 students received 11-15 hours of various skills training weekly TVETS placed students with agricultural SMEs for internships Career guidance and advisory services >50% of students across schools were satisfied with career counselling, and 90% believed it contributed to life planning Integration of students & teachers into community agriculture efforts School resources were used to support 12 agricultural model villages Teachers trained farmers in cultivation, pest control etc. TVETS means Technical and Vocational Education and Training Colleges || || || Key successes China Students transitioned smoothly into agriculture sector Majority of students pursued agriculture after schooling - ~90% employment rate of agricultural majors across the 3 schools Employers collaborated with schools to develop more TVETS Xinjiang built a training centre for seed production and management majors, and developed eight training courses Heilongjiang established province level school-enterprise cooperation group for food majors Learnings for Plateau State Partner with schools to build a training centre for potato seed production, farming and processing Work with ASTC & FADAMA to identify skill gaps in the agricultural sector and partner with schools to adjust curriculum to include gaps Liaise with agro-processing companies e.g., NASCO, and communal farmers to offer students yearly one-month internship placements 1. Schools in focus are Xinjiang Agricultural Vocational Technical College, Nan Gong Vocational and Technical Education Centre, and Heilongjiang Nongken Vocational College Source: World Bank; Media coverage; BCG 70 70 Copyright © 2019 by Boston Consulting Group. All rights reserved. ש#72Penang's government formed collaboration between government, industry & academic stakeholders to boost local agriculture processing industry | || ||| | Context Developed international halaal hub Positioned as location of choice for halaal based food processing Government worked with stakeholders to provide complete ecosystem Land, infrastructure, services & incentives to investors What did Penang State do? PIHH² is the central point in sourcing ingredients for processing • . Strong linkages with local suppliers and other halaal parks in the region Local suppliers easily available-located near Juru agri. area Dedicated agency¹ to spearhead promotion & development of hub Works in tandem with the States investment Promotion Agency Penang State helped to build up industry ecosystem with stakeholders Dedicated 130 acres of prime land for the park • . Road, sea & air connections; positioned close to terminals . Partnership with local universities for R&D Attracted investors by offering • Income tax, import duty & sales tax exemptions Policies that are conducive to FDI e.g.: 100% foreign ownership Key successes Attracted large investments Both from local and global investors In diverse food processing sectors e.g.: cereals & meat Total investments in excess of USD 120MN More than 500 companies located in the hub³ Established international partnerships e.g: Malaysia • With DAFZA4 to support co's with access to fast growing markets Set up entire halaal hub ecosystem thus establishing itself as a global halaal hub Learnings for Plateau State Locate food processing plants close to key agriculture sourcing areas & ensure good power, water and transport infrastructure in the area • Close proximity and market linkages encourages use of local inputs • Makes transporting raw materials easier, ease of exports as well Have a dedicated agency to promote food processing industry Works with investment promotion agency to help secure & market industry Government support to build up industry Investing in enabling infrastructure & forming partnerships Offer attractive investment incentives e.g. fiscal incentives 1. Called Halaal Penang, 2. Penang International Halaal Hub, 3. As at 2013, 4. Dubai Airport Freezone Authority Source: BCG Analysis 71 Copyright 2019 by Boston Consulting Group. All rights reserved. ש#73Mining 72#74Goal Increase revenue from state-owned concessions and fees#75Plateau is blessed with generous mineral resources, especially in tin and columbite... Multiple minerals currently mined in Plateau... ...with Plateau's tin and columbite accounting for most of Nigeria's total production by volume Federal strategic mineral Clay/Kaolin 100% 0% 100% 100% 100% Kaduna Cassiterite (Tin ore) 18% Bauchi Bauchi Nassarawa 6% Others 2% 2% -1% 0% Plateau 8% 17% Bauchi Ondo Gemstone Plateau Tantalite Zamfara 19% Molybdenite Oyo 30% Rutile Barite Columbite Ebonyi 96% Plateau 86% Ogun 64% Plateau 52% Lead/zinc mines not mapped by federal government, despite status as a strategic mineral Note: All figures are from 2018 Source: National Bureau of Statistics Tin ore Columbite Lead/Zinc Granite aggregates 74 Copyright © 2019 by Boston Consulting Group. All rights reserved.#76Although granite is the most produced mineral in Plateau, tin and columbite are the key drivers of mining revenue 4 minerals make up -79% of Plateau's mineral production... 2018 mineral production (Tons) 58,490 ...with tin & columbite being the biggest contributors to Plateau's mining revenue¹ 2018 Plateau revenue (USD Mn) 102 19,291 6,090 5,219 1,565 Granite Aggregates Others Tin Ore Lead/Zinc Columbite (Cassiterite) 1. Revenue calculated based on Plateau's production and international mineral prices Source: NBS; World Bank; Desktop Research; BCG Analysis 66 13 6 Tin Columbite Lead/Zinc Granite Aggregates Revenue/Ton $ 16,712 42,186 2,490 100 775 Copyright 2019 by Boston Consulting Group. All rights reserved.#77Compared to countries with similar reserves, Nigeria produces less tin and columbite than expected.... Estimated tin reserves and Production, Estimated columbite reserves and resources (Mn tonnes) resources (Mn tonnes) 800 600 700 % of reserves 2,0 1,500 Add'l potential reserves 1,204 1,5 1,005 891 450 1,000 400 1,0 01 300 250 250 500 200 0,5 193 0 0,0 0 Brazil DRC Nigeria Rwanda Malaysia Nigeria Gabon Kenya Tanzania Malawi Yearly production (% of reserves) Reserves and resources (million tonnes) Plateau Production unavailable 1. Scaled to a minimum of 0.2, maximum of 5. DRC's actual figure is 38, Rwanda is 29, Brazil is 146, Malaysia is 49, Malawi is 0.05 2. All figures in 2013 Source: SNL Metals and Mining; UN Comtrade; International Information and Engineering Technology Association (IIETA), United States Geological Survey (USGS) Minerals Resources Program, 76 CIA's World Fact Book Copyright 2019 by Boston Consulting Group. All rights reserved.#78Potential revenue not fully captured due to lack of enforcement of existing fees Multilayered set of taxes and fees... Business ...complicated by inefficient collection Registration (NGN) Tin sheds/buying centers 50,000 Renewal (NGN) 30,000 • Quarterly premise inspections 25,000 State tipper association 50,000 30,000 • Introductory fee/Indication of 50,000 30,000 presence Daily charge/tipper 500/trip Mineral traders 20,000 2,000/miner Artisanal miners Annual surface rent Haulage fee 30,000/Ha 17,000/ 30 ton truck Plus all federal fees 15,000 1,000 • State lacks complete information on land titling, mineral titling locations, and exact mineral dispositions Imprecise view of all currently operating mines Commercial registration and transport licensing done through different ministries, without tracking mining haulage Ore composition untested and taxed based on lower- value minerals (e.g., copper within lead ore) Lack of manpower and equipment to conduct spot inspections and regulate artisanal miner 77 Copyright © 2019 by Boston Consulting Group. All rights reserved.#79Potential investor expresses interest State processes Complicated landscape for potential investors and multi-layer stakeholder management limits interest Additional federal processes Estimate reserves Larger than usual investment needed given lack of reserve estimates Enter into JV with local partner Uncertain Plateau Mineral Development Company finances and business history Navigate federal and state laws Multiple, uncoordinated stakeholders across levels of government Identify potential sites Lack of State-level understanding of mineral disposition and license availability Determine likely cost structure Limited infrastructure increases transport costs Sign CDA Inconsistent coordination with Ministry of Mining and Ministry of Environment 78 Copyright © 2019 by Boston Consulting Group. All rights reserved.#80How does Plateau grow GDP from the mining sector?#81In the short term Plateau should focus on... Tin Columbite ...and in the long term on Lead/zinc Gemstones#82Objectives- B Four initiatives to improve the mining sector B.1 B.2 B.3 B.4 Maximize revenue collection Improve revenue collection by assessing current status (operating status, fees and tax compliance etc.) of concessions, establishing a comprehensive database on mining companies operating in the state and improving process for monitoring and evaluation for noncompliance Improve attractiveness for investors Improve attractiveness of upstream and downstream of value chain to investors through fiscal incentives (tax breaks, remittances etc.), quality infrastructure (guaranteed power supply) and improved ease of doing business Maximize potential of PMDC1 Accelerate clarification of PMDC's¹ financials, identify alternative joint venture structures to reduce perceived investor risk Improve investors- community relations Support community leaders in CDA process and ensure state ministry is involved in all CDA grants and monitors execution of CDAS Note: PMDC - Plateau Mineral Development Company; CDA - Community development agreement 81 Copyright 2019 by Boston Consulting Group. All rights reserved.#83Mining Detailed initiatives 82#84B.1 Maximize revenue collection (I/II) Initiative objective Assess current status of concessions and establish comprehensive database on mining companies Streamline and consolidate fees Improve process for monitoring and evaluation for noncompliance Actions B.1.1 Assess current status of concessions & create database of mining cos.: Work with Cadastral Office of the Federal Ministry and identify known mineral license holders and areas, available concessions, & operational sites Survey all held concessions and assess for operating status: Correct haulage fees and surface rent are being paid Work with IRS to determine payment status of fees and taxes Created a state registry (database) to record the ownership of all concessions Work with Ministry of Lands, Survey and Town Planning to map to demarcate land parcels (digitally), with allocated ownership B.1.2 Streamline haulage fees collection process: • • Implement yearly haulage fee structure based on production from sites and type of mineral transported Establish mechanism for collecting haulage tax in collaboration with the Board of Internal Revenue (including who is responsible for spot checks, final assessment and tax collection) Design path to electronic payment of haulage fees (i.e. create payment portal to be used and implemented with help of ICT) Deliverables Initiative Lead B.1.1, B.1.2 Ministry of Mineral Development B.1.3 Board of Internal Revenue List of concessions, operating companies and operating status Tax compliance status of all operational mining companies Database of list of mining companies operating in the state New haulage fee structure implemented Mode of collecting fees and taxes identified and implemented Recommended timeline 6 months • 12 months 6 months • 12-18 months 12-18 months Potential quick-win 83 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#85B.1 Maximize revenue collection (II/II) Initiative objective Assess current status of concessions and establish comprehensive database on mining companies Streamline and consolidate fees Improve process for monitoring and evaluation for noncompliance Actions B.1.3 Improve process for monitoring and evaluation: • Implement rotation of spot checks at concessions to assess licensing, registration of artisanal miners, haulage payments, etc. in cooperation with Federal agents and local efforts Create fee penalty for noncompliance with existing regulations Stakeholders Initiative Lead B.1.1, B.1.2 Ministry of Mineral Development B.1.3 Board of Internal Revenue Deliverables Inspection schedule for mining sites Recommended timeline 3 months Resources Metrics Ministry of Finance • Ministry of Lands, Survey and Town Planning • • Ministry of Local government and chieftaincy affairs Local government councils Tax collection agents Plateau State ICT Development Agency ICT to develop/implement payment solution and database % of fees collected % increase in revenue from fees 84 Potential quick-win 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#86B.2 Improve attractiveness for investors (I/II) Initiative objective Improve attractiveness of upstream and downstream of value chain to investors through fiscal incentives Improve quality of infrastructure (guaranteed power supply) Improved ease of doing business Actions B.2.1 Identify target sites, investors and develop investor packs Identify concessions with and without current operations, especially in tin and columbite, to be further explored by the state and develop a business case for investors Identify areas of high mineral concentration near existing infrastructure as potential sites for smelting and ore processing Define a long-list of 20+ potential extraction and processing investors and develop detailed profile for each Develop customized pitch-book including benefits (such as cheap energy), PPP structures, production history of sites etc. for introductory meetings with investors Maintain and update list of investors with high interest of investing in mining Examples of potential investors: Multiverse Plc., SBOG, Red mining etc. B.2.2 Build promotion plan for investment opportunities Partner with One Stop Shop to develop investor outreach strategy Prepare marketing collaterals and promote opportunities to investors at events, 1-on-1 meetings etc. B.2.3 Improve ease of doing business Integrate the One-Stop-Shop under the Office of the Governor: Prioritize implementation of the One Stop Shop (OSS) by the Office of the Governor, by holding the Ministry of Commerce accountable for ensuring all key state and federal MDAs are integrated into OSS in a timely manner Ensure the Ministry of Mineral Development works with Ministry of Commerce to streamline all registration processes (see next pg.) Deliverables Initiative Lead B.2.1 Ministry of Mineral Development B.2.2 PMDC B.2.3 Ministry of Commerce and Investment Recommended timeline 9 months List of priority sites, target investors and Pitch book Marketing campaign to attract investors rolled out 3 months One Stop Shop functioning effectively • 3 months 85 Potential quick-win 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#87B.2 Improve attractiveness for investors (II/II) Initiative objective Improve attractiveness of upstream and downstream of value chain to investors through fiscal incentives Improve quality of infrastructure (guaranteed power supply) Improved ease of doing business Actions • • Streamline registration and certification processes: Streamline and reduce the time to register a business For potential JVs identified by PMDC, map out PMDC's role as point of contact and liaison for investors to navigate state & federal government Identify and offer investment incentives such as: Exemptions on sales tax, property tax, right of occupancy fees etc. Access to land at competitive prices and free land registration Subsidized tariffs for power through NESCO Work with BOI (or other DFIs/FIs), PLASMEDA, to improve access to financing to investors incl. favorable interest rates, non-collateral loans etc. Implement alternative dispute resolution process when disagreements ensue involving companies in the mining sector Work with Ministry of Works and Ministry of Energy to identify primary locations for roads and power improvements to increase mining and processing of tin and columbite: Fund the development of infrastructure through PPPs between Government, DFI and Private sector organisation Stakeholders • • . • • Ministry of Commerce and Investment; Plateau State ICT Development Agency Ministry of Mineral Development PMDC Ministry of Finance PLASMEDA Deliverables • List of incentives Initiative Lead B.2.1 Ministry of Mineral Development B.2.2 PMDC B.2.3 Ministry of Commerce and Investment Clear guidelines on dispute resolution process List of priority infrastructure developments to support mining industry Resources Consultant to develop marketing strategy Financing capital for investors and infrastructure Recommended timeline ⚫ 3 months • 6 months 6 months Metrics • % increase in investment Number of newly established businesses Time to register business reduced to <21 days Potential quick-win 86 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#88B.3 Maximize potential of PMDC (I/II) Initiative objective Accelerate clarification of PMDC financials Identify alternative joint venture structures to reduce perceived investor risk Initiative Lead B.3.1, B.3.3, B.3.4 PMDC B.3.2 Office of the Governor Actions B.3.1 Accelerate clarification of PMDC financials Deliverables • PMDC financials finalized Recommended timeline 12 months State government should prioritize funds for share capital in PMDC B.3.2 Build technical competency of PMDC • Plan for internships with tertiary students and grads 6 months State government should allocate funds to PMDC to recruit more technical adept staff and train current staff Partner with Plateau's tertiary institutions to provide internships for graduates B.3.3 Prioritize concessions PMDC prefers to capture (both currently available and non-compliant concessions) Request revoke of license for priority list and request concession for PMDC B.3.4 Define business plan and identify alternative joint venture structures between PMDC and investors to reduce perceived investor risk: • Develop a business plan where PMDC identifies quick wins in the downstream sector (establishment of tin/columbite buying centers, tin sheds, etc.) and long term plan to expand into gemstones Set up buying centres for artisanal miners near processing sites and make them attractive by setting up testing & purification facilities in these centre Find partners for JV with PMDC, where PMDC primarily holds licenses List of priority concessions • 6 months • PMDC Business Plan with Joint venture structures identified 6-12 months 87 Potential quick-win 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#89B.3 Maximize potential of PMDC (II/II) Initiative objective Accelerate clarification of PMDC financials Identify alternative joint venture structures to reduce perceived investor risk Stakeholders Ministry of Mineral Development • PMDC • PLASMEDA Initiative Lead B.3.1, B.3.3, B.3.4 PMDC B.3.2 Office of the Governor Resources Metrics Auditors to help construct PMDC financials PMDC financials finalized - Yes/No • % of mining companies active and included database No. of PMDC JVs created 88 Potential quick-win 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#90B.4 Improve investors-community relations Initiative objective Support community leaders in CDA process Ensure state ministry is involved in all CDA grants and monitors execution of CDAS Initiative Lead Ministry of Mineral Development Actions B.4.1 Ensure coordination between Federal government and State government on objectives and expectations from CDAS Obtain copies of all current CDAs from Federal government Check quarterly for new potential relevant mineral licensees or new CDAS B.4.2 Support community leaders in CDA process • Awareness campaign aimed at sensitizing local chiefs and processing companies on the state's policy on creation of CDAS Ensure local chiefs are given support in CDA process for potential concessions Ministry of Mineral Development to serve as intermediary between local chiefs and mining companies to ensure fairness B.4.3 Control execution of CDAS • Ensure State Ministry is involved in all CDA grants and monitors execution of CDAs through coordination with Federal Ministry and Ministry of Environment Monitor execution of CDAs and create legislation for concessions when CDAs are ignored/breached (e.g. Penalty for breach of contract) Stakeholders • Ministry of Mineral Development Ministry of Local government and chieftaincy affairs Local government councils Ministry of Justice Deliverables Recommended timeline List of all current CDAS 3 months Ministry involved in all new CDAS Penalty for any breaches of CDA defined • Resources N/A • 6 - 12 months 6-12 months Metrics % of CDAS state ministry is involved in % of sites in compliance with CDAS 89 Potential quick-win 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#91Tourism 06 90#92Goal Develop environment for private tourism investment#93Plateau is endowed with multiple tourist attractions, mainly in the northern end of the state Riyom Bassa Jos Jos South Barkin Ladi Bokkos Jos East Mangu Pankshin Kanam Kanke Langtang North Wase Mikang Qua’an Pan Shendam Langtang South Legend Rock Formations Waterfalls O Wildlife Parks Tourist Village Volcanic Mountains/Natural Springs O Rock Formations Shere Hills, Riyom Rock, Kahwang Basalt Rock Formation Waterfalls • Assop Falls, Kurra Falls Volcanic Mountains/Natural Springs . Kurang Volcanic Mountain Wildlife Parks ⚫ Jos Wildlife Park, Pandam Game Reserve, Wase Rock Game Reserve Tourist Village • Mado Tourist Village Cultural festivals . Wushiri, Afrizere, Nzem Berum festivals etc. 92 22 Copyright 2019 by Boston Consulting Group. All rights reserved.#94Its unique rock formations and wildlife park have long attracted visitors within Nigeria Jos Wildlife Park Wase Rock Assop Falls 93 93 Copyright 2019 by Boston Consulting Group. All rights reserved.#951 No defined strategy to monetize the sector • • • • • Lack of a defined strategy to develop the sector, & attract investment Lack of communication strategy: No clarity on target customers, hence a mass marketing approach that yields minimal results No clear view of ownership of potential sites No promotion strategy to attract investors Complicated interface between Tourism Agency and Ministry of Tourism delay negotiations with potential investors However, Plateau has been unable to maximize tourism's potential due to a number of factors 2 Abandoned or dilapidated tourist sites due to lack of funding Lack of government funding makes it difficult to develop tourist sites to basic enough level to attract private sector investment • • • Mado Tourist Village and Wase Rock Game Reserve are currently dormant Jos Wildlife Park faces cash flow difficulties with paying suppliers & game personnel, upgrading assets etc. 3 Lack of infrastructure • Road infrastructure and flight networks make it difficult for tourists to access Plateau and its tourist sites Jos Wildlife Park lacks basic security infrastructure (e.g. fencing), leading to illegal poaching, mining, tree-felling, illegal farming etc. Lack of funding for other supporting infrastructure (e.g., hotels, site security) 94 ཙ་ Copyright 2019 by Boston Consulting Group. All rights reserved.#96B Connectivity • Air, Land, Sea Quality & availability of infrastructure . Hotels Restaurants etc. Four primary prerequisites typically enable tourism development Quality of cultural & tourist offerings Natural and cultural resources (e.g. mountains, wildlife parks etc.) Enabling environment • Favorable business and labor regulation Political & Social Stability 95 95 Copyright 2019 by Boston Consulting Group. All rights reserved.#97Benchmark: Rwanda has grown its tourism industry and GDP by evolving from a agriculture and trade center and developing its connectivity Non-exhaustive Rwanda GDP Current USD B Evolution of economy Leveraged Rwanda's Rwanda leveraged its good weather conditions to build and develop its agriculture sector Genocide Focused on rehabilitation of economy by reducing dependence on subsistence farming & Enhanced Rwanda's regional & continental air connectivity by establishing a national carrier RwandAir to build its tourism industry cultural and natural offerings & aerial connectivity to build its position as a tourism hub Tourism MICE 1980 - 1990 Note: MICE - Meetings, Incentives, Conferences, and Exhibitions barriers to trade & devpt. Agriculture & Trade 1990-2000 Aerial 0 2000-2010 2010 - 2018 96 96 9.51 Copyright 2019 by Boston Consulting Group. All rights reserved.#98B D Plateau State is lagging behind its peers in most of the four key prerequisites Connectivity Quality and availability of infrastructure Quality of cultural & touristic offering Enabling environment (Security) Overall maturity: Low Comparison to best in class in Nigeria Plateau Abuja Kaduna Kaduna Bauchi Ogun Lagos Low High 97 Copyright 2019 by Boston Consulting Group. All rights reserved.#99Benchmark: Olumo Rock Ogun State About . • The state gov't developed infrastructure and policies that encouraged private sector development of hotels and restaurants around the Olumo Rock It is now one of the more popular tourist destinations in Nigeria Key success factors . • Accessibility: <2 hours drive from Lagos state Infrastructure: to support tourist activities such as hotels, restaurants, a museum and art and artefacts shops onsite etc. Experience: Availability of tour guides on site to provide an enriching experience to guests Marketing: Tours are marketed through travel websites such as Viator, TripAdvisor etc.#100How does Plateau grow GDP from the tourism sector?#101Objectives- Three initiatives to improve tourism C.1 C.2 C.3 Develop priority locations that have the most potential Develop market for tourism: prioritize sites for investment to attract tourists e.g. sites near Plateau North, and develop critical infrastructure required to be support sector (water, power supply, roads, security) Improve attractiveness for investors Improve attractiveness of both tourism and hospitality industry to investors by offering incentives, such as tax exemptions, remittance of profit etc., to tourism companies Launch a targeted marketing strategy Define target customer segments (families, couples, outdoor enthusiasts etc.) and develop targeted marketing campaigns to improve branding and positioning of Plateau as a destination of choice and not a place of conflict 100 Copyright 2019 by Boston Consulting Group. All rights reserved.#102C.1 Plateau should concentrate investments to maximize benefits to multiple sites... Prioritize clustered sites in close proximity to one another with existing infrastructure (e.g., those close to Jos town center and airport Concentrate increased security around these clustered areas Improve infrastructure near these clusters Offer tour packages across clusters of sites Grow a reputation for safe and fun tourist visits, then build from there 101 Copyright 2019 by Boston Consulting Group. All rights reserved.#103C.1 ...and expand with time Jos North Riyom Bassa Jos South Barkin Ladi Jos East Mangu Bokkos Pankshin Kanke Mikang Langtang North Qua’an Pan Shendam Langtang South Kanam Wase Example prioritization plan for tourism development • Wave 1 Shere Hills, Riyom Rock, Assop Falls, Jos Wildlife Park, Mado Tourist Village • Wave 2 Kurra Falls, Kahwang Basalt Rock Formation • Other waves Pandam Game Reserve, Wase Rock Game Reserve etc. Expand to new ventures (e.g., Resorts, Amusement parks etc.) 102 Copyright 2019 by Boston Consulting Group. All rights reserved.#104C.2 Improving infrastructure and providing security and other incentives will enable investments into tourism industry Connected infrastructure Easy, safe connections from . the airport • Roads in good condition between primary tourist sites around Jos Assured security Security presence around tourist sites, routes to and from airports • Reduced violent incidents and reduction of loss of life and property Attractive incentives • Tax exemptions • Streamlined business registration Access to financing Reduced land prices Increased likelihood of private sector investments (e.g., hotels, privatized sites) 103 Copyright 2019 by Boston Consulting Group. All rights reserved.#105Example Initiatives to be developed¹ Several tourist archetypes exist for a tour company expanding into Plateau Tourism 1 2 The adventurers Example of target tourist archetypes Groups/families 3 The lovers Shere Hills: Develop to attract mountain climbers, hikers and thrill seekers. Also, ensure tour guides are present on site for tourists Riyom rock and Assop Falls: Create joint package tours of Riyom and Assop falls for tourists looking for the perfect nature-inspired pictures Jos Wildlife Park: Develop for family, friends or couples as a place they can have a picnic and learn a thing or two about wildlife. Partner with Ministry of Women Affairs and Social Development to allow women sell handcrafted items such as stuffed animals, souvenirs etc. Create on week long "Peace Festival": consolidate various current cultural days and complement with events like music performances, competitions for youth etc. in conjunction with Jos wildlife park 1. Based on proximity to Jos Town Suitable to all three archetypes 104 Copyright 2019 by Boston Consulting Group. All rights reserved.#106Tourism Detailed initiatives 105#107C.1 Develop priority sites that demonstrate potential (I/II) Initiative objective Develop market for tourism: prioritize sites for investment to attract tourists e.g., sites near Plateau North Develop critical infrastructure required to be support sector (water, power supply, roads, security) Actions C.1.1 Identify clustered, high-potential sites for potential investment Survey potential sites for development (see back up slide) and create a list of ~5 priority sites and events to be developed to attract tourists. Prioritize based on distance from Jos town and build further out. i.e. furthest places are lower priority Verify current ownership of sites and transfer ownership of gov't held sites from the ministry to the tourism agency, and after prioritization, offer cash and resettlement help to purchase sites currently held by individuals Ensure specific tourist areas are included in the zoning law, and that the law is gazetted, to prevent people from building on them C.1.2 Build up infrastructure & services to support tourism activities . • Confirm viability of sites for development and develop a business case for investors and submit to Ministry of Tourism for approval Prioritize improvement of basic infrastructure in prioritized sites such as: Roads to and from Plateau state and priority tourist sites (see initiatives on Roads and Transport, E.1) Consistent and sufficient power supply (see initiatives E.4 and E.5) Hospitality: incentivize development of hotels by hotel chains prominent in Nigeria such as Golden Tulip, Tsogo Sun, Protea Hotels (by Marriott), Wheatbaker etc. (See incentives in initiative 2) Attract SMEs to open businesses (Souvenir shops, restaurants etc.) around key sites Link up tour groups with Operation Rainbow for additional security Deliverables Initiative Lead Ministry of Tourism Recommended timeline Long list of priority sites and events for further development • 2 months Locations for development validated; Business plans developed and approved List of priority infrastructure developments to support tourist offerings 6 months • 6-12 months Potential quick-win 106 Copyright 2019 by Boston Consulting Group. All rights reserved.#108C.1 Develop priority sites that demonstrate potential (II/II) Initiative objective Develop market for tourism: prioritize sites for investment to attract tourists e.g., sites near Plateau North Develop critical infrastructure required to be support sector (water, power supply, roads, security) Actions Create program to certify tour guides at key tourist sites Seek alternative forms of financing infrastructure through PPPs between Government, DFI and Private sector organisations Stakeholders Ministry of Tourism Tourism Agency Ministry of Commerce and Investment Deliverables Certified tour guides Initiative Lead Ministry of Tourism Improved security patrols near tourist sites Resources • Office of the Governor • Recommended timeline 3 months Metrics List of priority sites for development and required supporting infrastructure completed (Yes or No) Number of certified tour guides Potential quick-win 107 Copyright 2019 by Boston Consulting Group. All rights reserved.#109C.2 Improve attractiveness for investors (I/II) Initiative objective Improve attractiveness of both tourism and hospitality industry to investors by offering incentives, such as Tax exemptions, remittance of profit etc., to Tourism companies Actions C.2.1 Identify target investors (Tourism companies, Hotels, Entertainment companies) and develop investor packs • Develop value-propositions and incentive packages. Examples of incentives: Free land registration, low cost leases, tax exemptions etc. Define a long-list of 20+ potential investors and develop detailed profile for each Gauge interest and maintain list of investors with high interest of investing in tourism in Plateau state Examples of potential investors: Hospitality companies that own, manage and franchise hotels, resorts and vacation properties: Golden Tulip hotels, Wheatbaker hotel etc. Entertainment companies: Solution Media and Infotech Limited (Owners of Hi-Impact amusement park in Lagos) C.2.2 Build promotion plan for investment opportunities identified • • • • • Tailor investment attraction activities to each type of investor Identify potential conferences and large-scale meetings which Jos could host as a central location Attend trade shows, organize a local investor weekend for tourism, update the Plateau website and showcase various potential attractions Prepare marketing collaterals and promote opportunities to investors online, at events, roadshows, 1-on-1 meetings Connect potential investors to local financing institutions (PLASMEDA) Organize site visits for investors and meetings with key stakeholders Initiative Lead C.2.1, C.2.2 Ministry of Tourism C.2.3 Ministry of Commerce and Investment Recommended timeline Deliverables • List of target investors • 2 months Investor packages on tourism in Plateau state 6 months • 6 months List of incentives accessible to investors Marketing campaign to attract investors rolled out Ongoing 108 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#110C.2 Improve attractiveness for investors (II/II) Initiative objective Improve attractiveness of both tourism and hospitality industry to investors by offering incentives, such as Tax exemptions, remittance of profit etc., to Tourism companies Initiative Lead C.2.1, C.2.2 Ministry of Tourism C.2.3 Ministry of Commerce and Investment Recommended timeline 3 months Deliverables • One Stop Shop functioning effectively Actions C.2.3 Improve ease of doing business • • Prioritize implementation of One Stop Shop by the Office of the Governor, by holding the Ministry of Commerce accountable to streamline and reduce the time to register a business and promote investments in the state Improve coordination between Min. of Commerce and Board of Internal Revenue for hotel registration, fees collection and implementation of e-payment solution Work with PLASMEDA to provide financing to SMEs to setup businesses in key tourist location, including favorable interest rates, non-collateral loans etc. Improve coordination and collaboration between Tourism Agency and Ministry of Tourism by instituting oversight of their operations from Office of Governor Implement alternative dispute resolution process when disagreements ensue (e.g., potential land disputes with locals relating to ownership of land close to tourist sites) Stakeholders • . . Ministry of Tourism; Tourism Agency Ministry of Commerce and Investment ICT Office of the Governor Board of Internal Revenue PLASMEDA Improved collaboration between Tourism Agency and Ministry of Tourism Clear guidelines on dispute resolution process Resources • 3 months • 6 months Metrics Consultant to develop marketing strategy • % increase in investment • Number of newly established businesses Time to register business reduced to <21 days 109 Potential quick-win 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#111C.3 Launch a targeted marketing strategy (I/II) Initiative objective Define target customer segments (families, couples, outdoor-enthusiasts etc.) Develop targeted marketing campaign to improve branding and positioning of Plateau as a destination of choice and not a place of conflict Actions C.3.1 Define target customer segment interests (See back up slides) • Gather different individuals that are representative of each archetype to test out some of the priority ideas (output in Initiative 1) Gauge interest of each archetype in the various ideas (output of initiative 1) to be developed and identify most interested segments (This could also be done through a survey) Develop value propositions and customized incentive packages for customers e.g. Create a loyalty program linked to benefits such as free airtime, points that can be used on local flights etc. Festivals can be combined into a week-long events to attract tourists Maintain database of customers for targeted marketing in the future C.3.2 Build marketing plan to rebrand Plateau state as the destination of choice for local tourists looking for a low cost get away in Nigeria • • Prepare marketing collaterals and promote opportunities to customers online (Jumia travel, Trip advisor, Instagram etc.), and at events Tailor marketing campaigns to attract all priority customer archetypes (see back up slide for archetypes) Partner with well known organisations, such as airlines, to market and raise awareness of tourist offerings Create a calendar of all the various cultural festivals in the state to showcase to tourists Partner with popular events, such as the Governor's golf tournament, Hiking club etc., to attract participant to explore tourist sites in Plateau Lobby conference and meeting organizers to come to Plateau for high profile domestic business events Deliverables Initiative Lead Ministry of Tourism List of target customer interests Incentive packages created Recommended timeline • 3 months 6-12 months Database of tourists created • Marketing campaign to attract investors rolled out • 3 months Ongoing Active Plateau Instagram account and website • 1 month Potential quick-win 110 Copyright 2019 by Boston Consulting Group. All rights reserved.#112C.3 Launch a targeted marketing strategy (II/II) Initiative objective Define target customer segments (families, couples, outdoor-enthusiasts etc.) Develop targeted marketing campaign to improve branding and positioning of Plateau as a destination of choice and not a place of conflict Stakeholders • • Ministry of Tourism; Tourism Agency Plateau State ICT Development Agency Office of the Governor PLASMEDA Initiative Lead Ministry of Tourism Resources Metrics • Funding to develop key sites, to develop website % increase in no. of tourists visiting state 111 Potential quick-win 3 Copyright 2019 by Boston Consulting Group. All rights reserved.#113State Government Revenue 112#114Goal Improve revenue capture across MDAs Copyright © 2019 by Boston Consulting Group. All rights reserved.#115For the first time in the past 5 years, Plateau's financials were net positive in 2018 Public Account Cashflow (Bn NGN) -2.1 -12.4 -35.9 4.2 -0.9 2014 2015 2016 2017 2018 Source: Plateau State Financials 114 Copyright 2019 by Boston Consulting Group. All rights reserved.#116However, this growth is mostly driven by federal financing, not by IGR 2014 2018 Cash Inflows (Bn NGN) +2% CAGR 110 102 96 13 23 -23% -21% 80 81 1% IGR 40 25 9 17% 15 39 6 11 11 Others (incl. bailouts) 10 46 Loans 46 34 Paris Club (Federal Refund) Statutory Allocation (FAAC) VAT 35 26 11 Tax Revenue 6 88 2014 2015 11 10 8 9 11 13 2016 2017 2018 90 Federal 0% 1. Federal refund of Paris Club debt-servicing state contribution due to Paris Club loan forgiveness Source: Plateau State Financials 115 Copyright 2019 by Boston Consulting Group. All rights reserved.#117Revenue capture IGR generation not reaching maximum potential in several areas, due to multiple factors Revenue Source Land Use & Registration Income tax Vehicle Registration & Licensing MDA Revenue Remittance Mining W Agriculture Telecommunications Water & Energy Resources Potential initiatives to generate more revenue • Invest in land registration schemes to increase land titles (10% achieved currently) and ground rent and property tax collected Increase Tax Identification Number (TIN) registration for majority of population working in informal sectors (e.g. agriculture, mining), by using alternative data capturing for the unbanked (e.g. phone number & biometrics instead of BVN) Tax revenue currently concentrated in urban areas (Jos accounts for -80% of total income tax) Increase rate of vehicle registration by streamlining payment processes and data capturing Increase licences & fees on commercial transport (e.g. carriages) Incentivize MDAs to declare all revenue realized by eliminating manual fee collection and increasing the use of bank payments which can link to TSA Establish comprehensive database on mining companies operating in the state, operating licenses and minerals mined by mandating local registration with the Ministry of Mineral Development Increase efficiency of haulage, surface extraction and environmental impact by creating harmonized one-time invoice Minimize informal trade routes by creating a regulated structure for agricultural commerce, through which taxes can be realized (both from farmers and buyers) Charge telcos environmental impact tax for operation within Plateau Reduce rate of infrastructure project abandonment (e.g. power line extension), to increase energy generation, potentially for sale to neighboring states Improve NESCO's capacity to generate more energy, leading to increased dividends for the state (Plateau has a stake in the company) 116 Copyright © 2019 by Boston Consulting Group. All rights reserved.#118Revenue capture Standard registration data excludes a large proportion of the population Using standard means of identification (e.g. BVN, utility bill) excludes majority of the population who are unbanked or in the informal sector Four key factors deter full participation and timely payment of taxes & fees Too many steps in the process prolongs registration period • High rate of application drop-off from land title applicants Average time for land registration: 186 days Until recently, JMDB permits required 30 steps (now 7 steps) Separate registration interfaces (MDAs) break the payment chain for payees Lack of incentives for people to pay . Taxpayers get no additional benefits for paying or repercussions for unpaid taxes e.g. Banks requiring land registration proof before granting loans or requiring TIN certificate required for access to state funding (e.g. SME Loans) for individuals and SMEs Manual payments increase government overheads and can reduce trust in payment rates for payees • Personnel handling costs for manual payments reduce revenue realizable ( by up to 15%) Manual payments also include likelihood of corruption in the form of differential charges that are not declared as official revenue 117 Copyright © 2019 by Boston Consulting Group. All rights reserved.#119How does Plateau improve revenue collection across MDAS?#120-Benchmark- Objectives- D Four initiatives to improve IGR D.1 $ D.2 A D.3 D.4 Increased tax registration rates Land registration reform Execute large-scale identification of taxable individuals and improve incentives for tax payment. Streamline process for ongoing tax payment Improve transparency of land registration process by providing resources for registration. Streamline process to reduce registration timelines Increased transparency for cross-MDA tax payment Increase transparency of taxes due from companies operating in Plateau State. Align tax due across multiple MDAs into one singular payment bill for corporates Streamlined revenue collection across MDAs Eliminate or minimize manual cash collection by MDAs and improve transparency by streamlining revenue collection into one singular interface, led by Board of Internal Revenue Mali Burundi Rwanda Kenya 119 Copyright © 2019 by Boston Consulting Group. All rights reserved.#121D.1 D.2 Plateau should incentivize TIN and land registration and simplify the process to capture more IGR Incentivize registration • Subsidize the cost of first time registration Launch awareness campaigns to increase citizen cognisance of benefit of tax payments • TIN & Land registration Streamline process Leverage technology to automate the process and remove bottle necks Improve approval coordination at all levels of government • Assist citizens with registration Capture more IGR Group. All rights reserved.#122D.3 D.4 Align taxes due across MDAs into single bill payable online/at LGAs Example list of fees to be consolidated All payments through online portal OPAP one page all payments Land use and registration Income tax Vehicle registration Annual and licensing surface rent Haulage fees Water and Energy Registration and tax collection points Pay With Abia Pay Retrial Reference (PRA) Your Phone Number 2017 Your Email Address Contour Sert T Abia State Online IGR Web Payment How to pay 121 Copyright © 2019 by Boston Consulting Group. All rights reserved.#123Revenue Detailed initiatives 122#124Mali Burundi D.1 Bring more citizens into the tax net (I/II) Initiative objective Incentivize first-time registration, especially for informal workers/rural dwellers Streamline payment process Initiative Lead Board of Internal Revenue Actions D.1.1 Incentivize first-time registration, especially for informal workers/rural dwellers • • Launch tax awareness campaign (mass media, town halls etc.) on benefits of tax payment and how paid taxes are spent (done in major local languages) Leverage farmers associations and, once established, co-ops and agro-hubs as intermediaries to persuade farmers on importance of paying taxes Subsidize the cost of first-time registration Seeking funding from USAID or other NGOs to support the cost of initiative Determine model for registering unbanked citizens (e.g. leverage USSD (Mobile) for registration and TIN sent to individual via text message) Enforce TIN number identification for access to state-subsidized services (e.g., healthcare, education, subsidized farming inputs) Increase number of tax registration points in each LGA to help citizens register D.1.2 Streamline payment process (See initiative 4 for more details) • Staff tax registration points in each LGA with officials or agents to help taxpayers with tax filing Leverage SANEF to seamlessly link TIN with BVN Use agent-based network (airtime and mobile money agents) as alternative payment points Partner with Telecos & onboard agents on how to process tax payment Launch e-filing tools and tax fairs to train citizens on how to pay taxes using mobile and e-payments (long-term) Deliverables Educational materials and mass media plan for tax awareness Signed order on reduced first-time cost Developed and tested data capturing model, ready for mass rollout (ICT/Telecos) Signed cross-MDA agreement on TIN as a pre-requisite for state services Launched tax centres in each LGA Agents deployed in each LGA during payment windows Developed and tested e-filing tools and training materials Recommended timeline • 2 months . 4 months 4-6 months 6 months 8 months Ongoing 4-6 month Potential quick-win 123 Copyright 2019 by Boston Consulting Group. All rights reserved.#125D.1 Bring more citizens into the tax net (II/II) Initiative objective Incentivize first-time registration, especially for informal workers/rural dwellers Streamline payment process Stakeholders • • Board of Internal Revenue Local Government Officials Tax collection agents Plateau State ICT Development Agency Ministry of Finance Initiative Lead Board of Internal Revenue Resources • State funding for: Media campaign Subsidizing registration cost Operating tax registration points in each LGA Developing digital tax registration technology Manpower for tax registration points Metrics . Percentage of relevant citizens registered Increase in NGN collected in taxes • Number of new taxpayers per year Percentage of taxes paid on time 124 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#126Rwanda D.2 Reform land registration process to increase land titling & related taxes (I/II) Initiative objective Streamline registration process to reduce timeline Improve transparency and accessibility of land registration resources, especially at the local level Actions D.2.1 Streamline land registration process • Optimize registration process to reduce timeline from 186 days to 21 days target, through automation and removing bottlenecks/redundant steps in the process Streamline MDA and local government interdependencies that prolong process e.g., improving approval coordination at all levels from local and state government D.2.2 Launch land registration campaign Assign a land registration time period over the next 4 years (e.g. 3 months per year) during which citizens will be assisted to register their lands During this period, assemble a task force of land registration officials to go into remote areas and assist citizens with swift registration This team could include: lawyers, notaries, local government officials, Lands and Survey officials, Board of Internal Revenue officials etc. Work with ICT create database for land holding records Set up legal/court system for dispute resolution Execute land registration incentivisation program (e.g., step-by-step guides or workshops) Waive historical ground rent on new registrations (e.g. for registration of unused land, owners will only be charge for prior year's rent, and for land in use, owners will be charged at a cap of 3 years Deliverables Initiative Lead Ministry Lands, Survey and Town Planning Process diagnostic report with identified bottlenecks Re-designed process aligned with 21-day target Recommended timeline • 1 month 2 months Streamlined cross-MDA approval process • 2 months • 2 months 4 months Alignment on annual land registration "grace period" Assembled task forces to cover all LGAs Defined legal process for dispute resolution Launched informational program Ground rent waivers for new registration implemented • 4 months 5 months 6 months 125 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#127D.2 Reform land registration process to increase land titling & related taxes (II/II) Initiative objective Streamline registration process to reduce timeline Improve transparency and accessibility of land registration resources, especially at the local level Actions Subsidize the cost of first-time registration during this window Estimate costs and prioritize funds for the tools required to implement this project e.g., transportation, forms, staffing remuneration Deliverables Initiative Lead Ministry Lands, Survey and Town Planning Signed order on reduced first-time cost Deployed tools to support task force operations Recommended timeline 4 months 1 month Stakeholders • Board of Internal Revenue Ministry Lands, Survey and Town Planning • Legal Practitioners (notaries, lawyers etc.) • Jos Metropolitan Development Board Department of Justice Resources • State funding for: • Subsidizing registration cost Task force operations Manpower for land registration task force Metrics . Percentage of land registered Average number of days to register land vs. 21 day target Increase in NGN collected in ground rent and property tax Potential quick-win 126 Copyright 2019 by Boston Consulting Group. All rights reserved.#128D.3 Increase transparency and accountability for cross-MDA tax payment (I/II) Initiative objective Align tax due across multiple MDAs into one singular payment bill Increase transparency of taxes and fees due from companies operating in Plateau State Initiative Lead Board of Internal Revenue Actions D.3.1 Align tax due across multiple MDAs into one singular payment bill coordinated by Board of Internal Revenue Set up One-Stop-Shop for cross-MDA taxes and fees payable by companies or individuals Determine all fee categories that cut across multiple MDAs (See back up slide for preliminary list) Meet with affected MDAs to determine singular point of contact to collect all fees due (See back up slide for cross MDA collaboration) Submit new one-stop-shop process for approval by relevant parties Implement approved process using manpower and digital tools to execute D.3.2 Increase transparency of taxes and fees due from companies operating in Plateau State • For each sector (e.g., mining, agriculture, telecommunications, water and energy resources, tourism and hospitality), itemize all taxes and fees due by companies operating in the state Publish bill payment guide online, customized by sector and by company size (where applicable), including payment process and payment point of contact (MDA interface) Launch push communication to companies during tax payment windows (letters, SMS etc.) Establish mechanism to identify non-compliance (who is responsible for monitoring, enforcement and sanctions) Deliverables Itemized list of fees that cut across multiple MDAs and relevant MDAs identified Re-designed collection process through a singular MDA interface Workshops with affected MDAs to assign MDA point of contact and sign off on updated fee collection process ICT development of tools required to support new process Fee payment tutorial guide published on state website and advertised to increase awareness Implemented process to communicate taxes and fees due Designed mechanism to identify non- compliance, including manpower required and sanction categories Approved monitoring process, ready for implementation Recommended timeline • 1 month 1 month • 2 weeks • 2 months 2 months • 3 months 4 months 4 months 127 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#129D.3 Increase transparency and accountability for cross-MDA tax payment (II/II) Initiative objective Align tax due across multiple MDAs into one singular payment bill Increase transparency of taxes and fees due from companies operating in Plateau State Stakeholders Board of Internal Revenue MDAS • ICT Development Agency Resources • State funding for: • Initiative Lead Board of Internal Revenue Metrics . Developing necessary digital tools for collection Political will of MDAs to collaborate (top- down ordinance from the Governor or state lawmakers) • Number of payment processes optimized through a singular point of contact Increase in NGN collected in taxes 128 Copyright 2019 by Boston Consulting Group. All rights reserved.#130Kenya D.4 Streamline revenue collection by using a singular payments interface (I/II) Initiative objective Eliminate or minimize manual cash collection by MDAS Improve transparency by streamlining revenue collection into one singular interface Deliverables Initiative Lead D.4.1, D.4.3. Board of Internal Revenue D.4.2. Plateau State ICT Development Agency Recommended timeline Actions D.4.1 Eliminate or minimize manual cash collection by MDAS Mandate e-payment options for revenue collection by MDAs (direct bank payment, POS payment, ATMs and other electronic means) Establish model for agent-based revenue collection at the local government level that links back to TSA/e-payment portal Determine best agent network to use as payment points (e.g., airtime agents, mobile money agents, consumer goods depots etc.) Determine mode of payment at these points (e.g., POS or mobile payment) Recruit, train and equip agents to collect revenue on behalf of MDAs D.4.2 Improve transparency by streamlining revenue collection into one singular interface . • • Launch tutorial campaigns on how to use non-manual payment methods and Plateau State Internal Revenue Service (PSIRS) Portal - tailored for individual and corporate tax and fee payers Include link to portal on state's website Make necessary upgrades to position PSIRS portal as central e-revenue collection point e-Payment revenue collection implementation plan • Defined agent-based collection model 2 months • 1 month Completed recruitment and training plan for agent network • 3 months 6 months • Procured tools required for agent network Launched training materials and awareness campaigns on e-payment through PSIRS portal 1 month Upgraded PSIRS portal to handle increased traffic 2 months 129 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#131D.4 Streamline revenue collection by using a singular payments interface (II/II) Initiative objective Eliminate or minimize manual cash collection by MDAS Improve transparency by streamlining revenue collection into one singular interface Deliverables Initiative Lead D.4.1, D.4.3. Board of Internal Revenue D.4.2. Plateau State ICT Development Agency Recommended timeline Actions D.4.3 Mandate all MDAs to remit revenue through the Plateau State Internal Revenue Portal Pass bill stating that all MDAs must remit payments through cashless means • Get approval from state legislature • Set up mechanism to align MDA bank accounts with TSA Create incentive system to reward MDAs who report more revenue than budgeted (e.g., higher % of retained revenue) Establish sanctions for MDAs found to be collecting revenue through unapproved channels (e.g., 5% cut in budget allocation to MDA) Ensure Board of Internal Revenue automatically remits the correct percentage of revenue to MDAs with clear link of payments to specific bills for easy reconciliation Communicate incentives and sanctions to MDAS Stakeholders Board of Internal Revenue • • Tax collection agents • . • Plateau State ICT Development Agency Ministry of Finance Governor Lawmakers Drafted and submitted bill 2 months Signed bill approved by governor, 8 months legislature and relevant MDAS • Approved incentive and sanction system • 1 month Circulated communication to MDAS 2 weeks Resources • State funding for: Agent network operations Upgrading revenue collection e-platform Manpower for revenue collection points Metrics • Percentage increase in revenue reported through PSIRS Portal 130 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#132D.4 Backup Potential avenues for Board of Internal Revenue to support other MDAs Revenue Source Potential cross-MDA collaboration Land Use and Registration Income tax Vehicle Registration and Licensing !!! Mining W Agriculture Water and Energy Resources • • Invest in land registration schemes to increase land titles (10% achieved currently) and ground rent and property tax collected Increase Tax Identification Number (TIN) and streamline payment methods for businesses Increase rate of vehicle registration by streamlining payment processes and sharing data across MDAs Increase licences and fees on commercial transport, mechanics etc. Train VIO on how to use PSIRS portal Increase efficiency of haulage, surface extraction and environmental impact taxes by creating harmonized one-time invoice Boost with staff to ensure payment through inspections Implement one time yearly haulage fee based on production of mining sites and an average distance Minimize informal trade routes by creating a regulated structure for agricultural commerce, through which taxes can be realized (both from farmers and buyers) Set up designated points in hubs for tax registration and payment Water board needs to ensure registration of all the water agents, water companies etc. Improve fee collection by stopping leakages, reducing losses due to inefficiencies in transmission (power) and theft Note: JMDB: Jos Metropolitan Development Board Potential coordinating MDAs for One- Stop-Shop Ministry of Lands, Survey and Town Planning JMDB Ministry of Commerce and Investment Ministry of Transport Ministry of Commerce and Investment Ministry of Mines and Mineral Development Ministry of Commerce and Investment Ministry of Agriculture RAAM Ministry of Commerce and Investment LGA officials Ministry of Water and Energy Resources Ministry of Works JMDB 131 Copyright 2019 by Boston Consulting Group. All rights reserved.#133Revenue Case studies 132#134D.1.1 Benchmark: Burundi Revenue Authority launched tax campaigns with local stakeholders to widen contribution of informal sector Burundi Context Informal economy doesn't have basic tax literacy & is unaware of the development benefits of taxes Unsure about why they should pay taxes • Not aware of how to go about registering & paying No moral social obligation to pay taxes Burundi wants to move to fair & equitable tax system which involves informal economy contributions What did Burundi do? Burundi Revenue Authority launched campaign targeting informal markets Launched tax literacy & awareness raising campaign Conducted by local administrators & market managers-made it more effective than if conducted by tax authority officials Launched call center for further support Encouraged informal traders to register for a taxpayer identification number¹ to assist bringing them into the tax net Campaign started in shopping malls, extended to markets & radios Locally trained students worked with tax authority officials to do a census of non-registered tax payers & register them Students & officials visited small traders in shopping centers to help register them Cost of the program was supported by USAID² & TradeMark East Africa 1. TINS, 2. United States Agency for International Development Source: Press Search; BCG Analysis Key successes -7,000 new taxpayers were registered during the campaign period Overall tax revenues increased since launch of program They have been issued TINS Boosted no. of tax declarations Increased taxpayer literacy Helped build awareness & knowledge of how to pay taxes Contributed to sense of moral obligation to pay taxes Built positive perception • Public feel they are being treated fairly & in a transparent manner given the outreach to them Learnings for Plateau State Involving officials who are closer to informal sector than tax authorities can be an effective strategy for raising awareness Establish support from the relevant local stakeholders from local administrators to funders Involve those stakeholders from outset Raise tax literacy & awareness re development role of taxes so people understand why they need to contribute Educate informal sector on how to declare & pay taxes E.g.: by having sessions at main markets where informal sector trades Be explicit about link between tax and development e.g: improved health facilities Copyright 2019 by Boston Consulting Group. All rights reserved.#135D.1.1 Benchmark: Mali created a partnership model with informal traders by delegating management of taxes to official trader organizations Mali Context Poor revenue collection and high levels of tax avoidance in informal markets Tax collection in Bamako was responsibility of local government Traders didn't trust the government and preferred avoiding tax Informal market represents a big tax base given how large this market is in Bamako What did Bamako do? Local Municipality delegated management of tax & markets at informal markets in Bamako • • Selected 5 markets with more than 1000 traders for the delegation project Grouped the traders within each market into official trader associations - Mainly formalized the already existing structures, since traders naturally form unofficial groups to protect their rights Created an umbrella organization to group all market associations and provide them with technical training Conducted a census on the number of potential taxpayers in these markets, and used the numbers as a starting point for negotiations Signed a management agreement with each association, which makes the associations responsible for tax collection, maintenance, and policing of their respective markets Agreed to invest part of the tax collection back into the markets Source: Ledna; BCG Analysis Key successes Led to increased tax collection Municipality has improved tax collection by ~100% Due to a very targeted collection approach Voluntary approach given traders knew government will reinvest some of the taxes to developing their markets Resulted in further development of municipality Improved working environment of the markets A portion of taxes are used for maintenance needs of markets e.g: water & sanitation Investments in commercial facilities Learnings for Plateau State Conduct research to focus on the correct target markets E.g.: survey to establish which informal markets have big tax potential Target these markets instead of targeting all at once Establish win-win partnerships between informal trader associations & local authorities to increase tax collection & help increase productivity A cooperative approach helps to build trust Establish official trader associations Develop contracts between tax collecting 'trader associations' and local authority with clear list of responsibilities incl. tax collection Government can get buy in by re-investing some tax collected back into market by providing training to improve productivity Copyright 2019 by Boston Consulting Group. All rights reserved.#136D.2.2 Benchmark: Rwanda implemented land reforms to improve land tenure and boost revenue collection Rwanda Context Genocide and demographic pressure disrupted the informal land tenure system Rwanda functioned on an informal land tenure system, which provided poor protection to owners Competing claims between returning refugees and families occupying the land created tensions High population density and strong demographic growth heightened the stress on the old system What did Rwanda do? Initiated a land regularization program to register and track land ownership Introduced a legal framework¹ on the use and management of land Created a national registry to record the ownership of all plots of land Mapped and demarcated land parcels (digitally), and allocated ownership Fair and inclusive allocation to men, women, and children Land registration fees were set at -$8 per individual • Land allocation was mainly done through local level adjudication Gave custody of the registry to the RNRA² once all land was recorded Creation of an independent and self-financing land titles registrar office tasked with maintaining the registry and administering properties The land services are able to collect land taxes and fees on leases The full registration process required $60 Million and the active involvement of -6,000 workers Key successes Strengthened land tenure in the country • • More than 11,4 Million parcels have been mapped and registered, representing the great majority of land in the country Prior to the reform, less than 1% of land was registered Reduced land-related conflicts during the post-genocide period Less than 1% of land was marked as disputed Increased tax revenues and gave an economic value to the land Land-related tax revenues increased five-folds since implementation, giving local districts the ability to invest further into their communities Gave land a tangible economic value, since ownership provides the right to lease or mortgage the asset Learnings for Plateau State Work at a local level to educate people and solve conflicts Local level land surveying helps involve the community and allows a higher level of precision in land demarcation Community level adjudication provides an easier environment for conflict resolution Provide land registration services at a low cost 1. National land Policy (2004) and the organic land Law (2005), 2. Rwanda Natural Resources Authority Source: CFPI;IISD; CABI; AFDB; BCG Analysis Higher adoption levels can be achieved by removing the cost barrier, which can have a high impact in rural areas 135 Copyright 2019 by Boston Consulting Group. All rights reserved.#137D.4.1 Nairobi county adopted hybrid model using e-payment system & on the ground physical agents to assist with increasing revenue collection Kenya Context AIROBI CITY COUNTY Inefficiency & inconvenience experienced in Nairobi's revenue collection Not all residents were paying fees E.g.: parking fees, permits Long queue system discouraged payment No accountability system existed Corruption due to lack of transparency What did Nairobi do? As part of broader ICT Transformation Programme, Nairobi adopted hybrid model to improve revenue collection for various public goods & services Epayment cash light system complemented with agent stalls • Enables uses to pay parking fees, vendors to pay market fees, etc... Accessible online & through agents with PoS¹ terminals Users can pay using M-money², debit cards, -30 partner banks and independent agent stalls spread across metropolis To ensure payment, enforcement team of officials deployed - Team carried POS terminal with camera, barcode reader, GPS tracker Barcode reader authenticates receipts & certificates issued upon payment Camera used for pictures of offenders-could be presented at court as evidence if they deny they were unavailable 1. Point of sale, 2. Mobile money, 3. 2013-2017, 4. As at 2017 Source: BCG Analysis Key successes Raised revenue collection by ~65%³ over a -3 year period Enabled revenue officers to check real-time updates from system & ensure amounts collected by all departments are accounted for • Helps with accountability & the challenge of transparency & fraud Previous corruption cost the city millions every year New system designed to ease payments • No need to stand in long queues Trained on the ground agents to help citizens with payments Revenue collected from diverse sectors & parking services have contributed the most (~88%)4, followed by land rates (~86%) 4 Learnings for Plateau State Ease revenue collection & consider introducing hybrid payment model Model that gives uses options to ease payments e.g E-payments for those who prefer to pay themselves Agent stalls spread across the city to cover main areas Complemented with on the ground agents equipped with good payment technology for those who don't have access Avoid methods which result in long queues and unaccountable process Build accountability into the payment system • • Ensure revenue officials are keeping track of payments by all departments Real time information updates & accountability checks could help Ensure credible 3rd party co. handles the technical part & avoid unnecessary changes in payment process if the current payment process works well Copyright 2019 by Boston Consulting Group. All rights reserved.#138Sustainable development practices will boost economic reforms and enable long-term growth H.E. Governor Lalong's Vision Agriculture Economic re-birth State Government Revenue Sustainable development enablers 이어 Mining Physical Infrastructure Human Capital Peace & Security Governance & Finance Tourism Ease of Doing Business 37 Copyright 2019 by Boston Consulting Group. All rights reserved.#139Sustainable development can only be achieved through a systemic approach Good governance Public investment efficiency • Ease of doing business Trust in government Physical Infrastructure • Investment costs Access to public goods (education, health) Economic growth Human Capital • Workers' capabilities Ease of dialoguing across differences Peace and civil society • Ease of doing business • Incentive for skilled workers to migrate 138 Copyright 2019 by Boston Consulting Group. All rights reserved.#140Infrastructure 139#141Goal Create the infrastructure needed for growth through coordinated road, energy, and water efforts#142Three primary areas of infrastructure development will enable GDP generation in Plateau 雷 Roads and transport Energy Water 141 Copyright 2019 by Boston Consulting Group. All rights reserved.#143Roads & Transport: Several factors limit roads' support to GDP growth Roads and transport Insufficient road construction Lack of coordination between Ministries of Works and Finance on timelines inhibits timely payments, hindering effective budgeting and delaying projects Inadequate communication reduces potential for combined efforts (e.g. Ministry of Works and RAAM¹ sharing construction assets), and could damage existing infrastructure (e.g., sewer pipes cut in road construction) Inefficient investment, cost spirals, and additional expenditures for non-road infrastructure 个 Insufficient maintenance planning and funding • Poor financing mechanism for maintenance - lack of a constant source of funding results in one- off approvals and delays Lack of coordination between Ministries of Works and Finance slows payment of mobilization fees, delaying repairs Revenue generation well below potential • • Insufficient number of vehicle inspections, impounds, and recoveries due to lack of resources Lack of coordination between Ministry of Transport and Board of Internal Revenue inhibits data collection on registered vehicles and reduces effective fee collection Large number of revenue generating government-owned assets (e.g., fuel dumps, quarrying machine, drilling machine) abandoned and now in disrepair 1. Rural Access and Agricultural Marketing Source: Stakeholder interviews Roads fall into disrepair and disincentivize long- distance supply chains and commerce Less revenue for road construction and maintenance 142 Copyright © 2019 by Boston Consulting Group. All rights reserved.#144Energy Energy: Several issues limit sector's contribution to Plateau's economy Generation H Transmission Distribution Insufficient connection to areas of potential demand (e.g., mills, processing plants) hinders NESCO's ability to profit from additional generating capacity • Poor maintenance of existing plants due to inadequate funding for skilled manpower recruitment . . . Unclear profitability and data on mini-grid success limits private sector investment in potential generating sites (e.g., additional hydropower) Large number of transmission projects started simultaneously and then stopped due to change in federal government priorities Transmission lines built not connected, preventing access to end markets Electricity theft due to infrastructure vandalism (e.g., power lines) reduces transmitted energy and minimizes revenue Lack of NESCO investment to leverage status as an integrated utility NESCO's high connection costs limits broader access to grid Tariff caps limit profitability in rural areas due to increased costs of transmission and distribution, limiting investment Lack of information on mini-grid investment return limits donor and investor interest in off-grid areas Source: Stakeholder interviews 143 Copyright 2019 by Boston Consulting Group. All rights reserved.#145Water Water: Despite recent reforms in the water sector, several factors still affect access to clean water Sipa 666 ↑ مر سے 0.0 Poor inter-stakeholder collaboration • Lack of data sharing which inhibits planning and management of water resources e.g., data on number of hospitals without boreholes Lack of project coordination or map accessibility leading to damages and unplanned repairs to existing infrastructure (e.g., repairs of sewer pipes cut in road construction) Insufficient revenue generation • • Poor quality of meters creates difficulty in tracking household consumption levels Water theft due to pipe burst and illegal connections reduces revenues generated Inactivity of water sector law limits ability to commercialize water resources Inadequate monitoring of expenses Poor tracking of spend data reduces number of completed water projects 0-1-0 F Unaddressed water contamination Environmental and behavioral practices such as poor sanitation reduces quality of water contamination from mining, reduces the quality of water supply Lack of skilled maintainers Inadequate maintenance of boreholes due to technical skill gap in available manpower 1. Water Infrastructure For Agriculture 144 Copyright 2019 by Boston Consulting Group. All rights reserved.#146How does Plateau address its infrastructure issues?#147Infrastructure Infrastructural development must support agricultural, mining and tourism objectives of the State MAP OF PLATEAU STATE ÁBUJA KADUNA Riyom Bassa Jos North Jos South Barkin Ladi Bokkos ΚΑΝΟ Jos East BAUCHI Mangu Pankshin Kanam Kanke Langtang North Wase Mikang NASARAWA Qua’an Pan Shendam Langtang South TARABA 1. Areas producing tin and columbite 2. Major wildlife, rock formation and water fall areas Source: Stakeholder interviews; National Bureau of Statistics Plateau must align its infrastructure development plan to agricultural, mining and tourism objectives • Good roads provide important connectivity with greater population and transportation centers Reliable electricity supply is required to operate machinery & equipment, and provide lighting Regular water supply is necessary for irrigation & mineral processing purposes Agro-hub LEGEND Plateau North Key mining center¹ Plateau Central Potential tourist center² Plateau South Neighboring state Road network 146 Copyright 2019 by Boston Consulting Group. All rights reserved. A#148Initiatives to improve infrastructure focus on three primary areas Roads and transport Improve federal gov't and private sector investment for high-value transport infrastructure Maximize revenue collection from existing streams • Ensure dedicated funding for road maintenance Energy Increase total grid connections through private sector expansion Expand existing efforts to enable mini-grid investments Water Implement planned laws and better sanitary practices Prepare Water Board for commercialization 147 Infrastructure A Copyright 2019 by Boston Consulting Group. All rights reserved.#149•-Benchmark-• •- Objectives- E.1 E Three initiatives to improve roads and transport E.2 E.3 $ Infrastructure A Improve federal & private sector investment for high-value transport infrastructure · Improve enabling environment for Public Private Partnerships • Secure federal government support to re-open key railroad routes Maximize revenue collection from existing streams • Increase contribution of existing revenue streams to IGR Ensure dedicated funding for road maintenance Reduce delays in road maintenance South Africa Uganda 148 Copyright 2019 by Boston Consulting Group. All rights reserved.#150Infrastructure - Roads & transport Detailed initiatives 149#151South Africa E.1 Roads and Transport: Improve federal government and private sector investment for high-value transport infrastructure (I/II) Initiative objective • Improve enabling environment for Public Private Partnerships Secure federal government support to re-open key railroad routes Actions E.1.1 Enable private sector investments in roads, transport and bridges ✓ Work with the state government to gazette PPP4 state laws allowing tolls & concessions for private investors e.g., Lagos State "Roads Law", which enabled privatized toll roads South Africa removed requirement of one alternative route per toll road, incentivizing PPPs¹ by reducing toll avoidance by drivers Look for partnerships (e.g., BOT¹, BOO² ) to build terminals and truck stops³ along key transit, trading, and economic routes (e.g., agro-hubs, food-processing and mining areas) Identify frequently used routes and those with high potential traffic from the agriculture and mining strategy (see initiatives A.2.4 and B.2.3) Deliverables . Initiative Lead Infrastructure E.1.1: Permanent Secretary, Ministry of Works ⚫ Gazetted state law allowing tolls and concessions for private investors Dedicate land, plan energy & water connections, and create tax breaks for companies willing to invest or set up shops in designated transport hubs & routes List of agro-hubs, food processing and mining routes, terminals/stops for prioritized investment ⚫ List of potential private investors and attractive incentives for them Recommended timeline ⚫ 9 months . 6 months • 6 months 1. Build, Operate and Transfer 2. Build, Operate and Own 3. Truck stops could serve as collection points for haulage fees, prime locations for restaurants, hotels, gas stations etc. 4. Public Private Partnerships Source: Media Coverage Potential quick-win 150 Copyright 2019 by Boston Consulting Group. All rights reserved. A#152E.1 Roads and Transport: Improve federal government and private sector investment for high-value transport infrastructure (II/II) Initiative objective • Improve enabling environment for Public Private Partnerships Secure federal government support to re-open key railroad routes Actions E.1.2 Lobby the Federal Government to fund repairs and privatize railroads connecting key economic routes e.g., rail roads leading from agro-hubs, food- processing centers to major agricultural off-taker markets in Abuja and Kaduna E.g., Federal Government partnered with FOCAC² to access a $500m concessionary loan from China's EXIM Bank to construct Abuja-Kaduna railway, linking farmers to off-taker markets in Abuja Deliverables Initiative Lead Infrastructure E.1.2: Permanent Secretary, Ministry of Works • Prioritized list of railroads for the Federal Government to re-open or privatize Engagement plan with Federal Government Recommended timeline • 5 months Stakeholders • Ministry of Works Ministry of Agriculture • Ministry of Energy and Water Resources • Ministry of Lands and Survey 1. Forum on China Africa Cooperation 2. Public Private Partnerships Source: Media Coverage Resources Metrics Average time to ship perishable goods to major markets Increase in number of PPPs² in future road developments Potential quick-win 151 A Copyright 2019 by Boston Consulting Group. All rights reserved.#153E.2 Infrastructure Roads and Transport: Maximize revenue collection from existing streams (I/II) Initiative objective . Increase contribution of existing revenue streams to IGR Initiative Lead E.2.1: Permanent Secretary, Ministry of Transport E.2.2: Permanent Secretary, Ministry of Transport Actions E.2.1 Determine right quantity and placement of inspection officers needed to maximize collections from impounds and inspections Work with the Board of Internal Revenue to determine the number of vehicles and vehicle owners in each LGA1, including vehicles registered in other states but used in Plateau • • Estimate the required number of inspection officers for each LGA1 based on vehicle data received from Board of Internal Revenue Identify gaps in quantity and placement of inspection officers in each LGA1 by comparing estimates on required number of inspection officers with actual number of inspection officers Estimate the costs of recruitment and likely impact of new officer recruitment on revenues generated Reserve funds at the beginning of the year to recruit new inspection officers E.2.2 Work with Board of Internal Revenue to improve sharing of vehicle registration data, enabling faster verification of vehicle and driver licenses during inspections Deliverables Recommended timeline Number of vehicles and vehicle owners in each LGA1 3 months Required # of inspection officers in each LGA1 Estimated gap in quantity and placement of inspection officers in each LGA1 Estimated recruitment costs and increase in revenues Recruited inspection officers Access to vehicle registration data on Board of Internal Revenue database 3 months • 3 months 5 months Next budget cycle 3 months 1. Local Government Area 2. Public Private Partnerships Potential quick-win 152 Copyright 2019 by Boston Consulting Group. All rights reserved. A#154E.2 Infrastructure Roads and Transport: Maximize revenue collection from existing streams (II/II) Initiative objective • Increase contribution of existing revenue streams to IGR Initiative Lead E.2.3: Permanent Secretary, Ministry of Transport E.2.4: Permanent Secretary, Ministry of Works Actions E.2.3 Improve collection of haulage fees from truck drivers Deliverables Recommended timeline • Engage Ministry of Mineral Development to identify prime mining areas and haulage routes List of prime mining areas Republish policy on payment of haulage fees, and set fines for defaulters or violation of policy Republished policy on haulage fees and fines for defaulters • 1 month ⚫ 3 months Timeline and manning plan to distribute personnel to collect haulage fees 5 months Work with Board of Internal Revenue to disperse more officers on haulage routes and roads leading to prime mining areas, to improve collections E.2.4 Lease or sell high-value abandoned infrastructure to private investors for repairs & usage and collect rent . • Make a list of all abandoned infrastructure within the Ministries of Works & Transport (e.g., fuel dump, quarrying machine) Assess value and investment needs of abandoned infrastructure, identifying and leasing high-value assets to investors for repairs & usage, and onwards collect rent on a yearly basis Stakeholders Ministries of Works and Transport Board of Internal Revenue List of abandoned infrastructure Value and investment needs of abandoned infrastructure List of high-value assets for lease to private investors Resources 3 months 6 months Metrics . Ministry of Mineral Development Increase in revenue collections/total number of vehicles Potential quick-win 153 Copyright 2019 by Boston Consulting Group. All rights reserved. A#155E.3 Roads and Transport: Ensure dedicated funding for road maintenance Initiative objective Reduce delays in road maintenance Initiative Lead Infrastructure E.3.1: Permanent Secretary, Ministry of Works Uganda Actions E.3.1 Create a road fund, separate from funds at Ministry of Finance, directly for maintenance • Lobby state government to institute an act, creating a road fund for maintenance (e.g., the National Road Fund Act signed in 2018 to support maintenance of Nigerian federal roads) Define type of roads covered by fund e.g., high-value state roads Define source of funds for the road fund e.g., fuel levies, % of fees collected from haulage fees, license fees, and road safety fines Solicit funding donations from mining and food-processing companies in exchange for prioritization of roads to maintain, tax rebates, etc. Operate the fund like a private enterprise to reduce bureaucracies (i.e., a private sector majority governing board, separation of roles of multiple stakeholders) Work with Ministry of Finance to ensure that the road fund is separate from funds at Ministry of Finance and restricted to maintenance (not construction) Stakeholders • Ministry of Works Ministry of Finance Source: Media Coverage Deliverables Recommended timeline Gazetted act on road fund with types of road covered and source of funds 12 months Pledges from companies for funding for specific roads 12 months • Operating model and board structure 3 months Guarantee that road fund is separate from funds at Ministry of Finance 3 months Resources . Funding for road fund Levies collected from state government Metrics Increase in funds available for road maintenance Potential quick-win 154 A Copyright 2019 by Boston Consulting Group. All rights reserved.#156Infrastructure - Roads & transport Case studies 155#157E.1.1 Infrastructure Roads & Transport: South Africa supports its road maintenance budget with a "user-pays" system A South Africa Context Toll roads were first introduced in South Africa in 1984 as a form of road use tax and have grown from an initial 27 km to -3.5k km They constitute -16% of the National Road Network (-20 km). Toll fees became necessary when the government couldn't afford road maintenance from its fuel tax revenues What did South Africa do? SA made a comprehensive legal framework in the National Roads Act: Ensured that tolls collected from users were spent only on maintenance of toll roads Removed the requirement of one alternative route per toll road in 1996 to incentivize PPPs by reducing toll avoidance by drivers SA launched E-toll in Gauteng province as a means of electronic payment Electronic tolling allowed for free-flowing traffic without stopping Whilst the move was not received well by public, revenue from the system funded freeway improvement projects in the province SA partnered with 3 private companies to build toll on high value roads A total of 3 PPPs between 1998 and 2000 were made for a term of 30 years Sources: IBTTA, SABITA, Media coverage (Factiva), BCG Analysis Key successes Increased funding for road maintenance Concessions fees increased from R3.98 Million in 2010 to R 5.84m in 2014 Road maintenance expenditure increased by R6m in the same period SA modernized its "user pays" system with the E-toll initiative Learnings for Plateau State Institute state laws/changes to state laws, allowing tolls and concessions for private investors Look for private sector partnerships to build tolls along high-value roads Legally guarantee that collected tolls would finance maintenance & operations of the toll road to make users more receptive to paying 156 Copyright 2019 by Boston Consulting Group. All rights reserved.#158Backup E.3.1 Infrastructure Roads & Transport: Uganda Road Fund finances the maintenance of 80,000km public roads in the country Uganda • · • Context Road transport is key to Uganda's economic success and social development, but often times it has to compete for funding with other key sectors in Uganda (e.g., health, education, and security) Many countries established special off-budget accounts such as Road Funds to earmark selected road use taxes & charges for road sector The performance of the 1st generation Road Funds was generally considered poor, Uganda is the last country in the East African Region to launch a 2nd generation road fund What did Uganda do? Uganda introduced the Road Fund Act in 2008 to support road maintenance, however the Fund became operational in 2010 The URF¹ has a mandate to provide adequate and stable financing for maintenance of the 80,000km public roads in Uganda The URF1 is funded by fuel levies, transit fees, road license fees, axle load fines, tolls, traffic and road safety fines, appropriations by Parliament, and donations/grants The URF1 is governed by seven Board of Director members with private sector majority, and operated by a lean thirty staff secretariat || || || Key successes Dedicated funding sources - the URF1 Act clearly specifies the types of road use fees and charges while maintaining flexibility by also including appropriations, donations and grants Operating URF1 in a business-like manner - the majority of the seven- member of Board of Directors are from the private sector, and a fee- for service principle Independence of URF1 from road regulators (policy setting) and road operators (maintenance & management) Learnings for Plateau State Work with the state government to establish a Road Fund with dedicated funding sources such as road use fees and charges Operate the Fund like a business enterprise A Board of Directors as the governing body with private sector majority Separation from road regulators and operators A lean staff with clearly responsibilities and accountability Source: Uganda Road Fund Act; BCG Analysis 157 Copyright 2019 by Boston Consulting Group. All rights reserved. A#159⚫-Benchmark- Objectives ● E Four initiatives to improve energy and water resources Infrastructure Energy Water Resources E.4 E.5 E.6 E.7 Increase grid connections through private sector expansion Publish signed Energy Corporation Law Improve grid connections either through NESCO or the PSEC raising capital Expand existing efforts to enable mini-grid investments Turn Plateau into an attractive hub for mini-grid energy donors and investors Implement planned laws and better sanitary practices Publish signed Water Sector Law Enforce better sanitary practices in households and companies Prepare Water Board for commercialization Maximize collections from existing revenue streams Reduce skill gap in manpower 1. Plateau State Energy Corporation Rwanda Bangladesh Ivory Coast Bangladesh 158 Copyright 2019 by Boston Consulting Group. All rights reserved. A#160Infrastructure - Energy & water resources Detailed initiatives 159#161E.4 Energy: Implement planned laws and increase grid connections (I/III) Initiative objective • Publish signed Energy Corporation Law • Improve grid connections either through NESCO the PSEC¹ raising capital Deliverables Infrastructure Initiative Lead E.4.1: Permanent Secretary, Ministry of Energy and Water Resources Recommended timeline Actions E.4.1 Gazette the Energy Corporation Law and enforce provisions Estimate costs and likely impact of publishing the Energy Corporation Law Partner with donors(e.g., European Union) to fund gazetting the Energy Corporation Law in newspapers, online webpages etc. Enforce the provisions of the Energy Corporation Law, creating the Plateau State Energy Corporation Estimated costs Energy Corporation Law . 2 months Published Energy Corporation Law 3 months Establishment of the Plateau State Energy Corporation 4 months 1. Plateau State Energy Corporation Potential quick-win 160 Copyright 2019 by Boston Consulting Group. All rights reserved. A#162E.4 Energy: Implement planned laws and increase grid connections (II/III) Initiative objective • Publish signed Energy Corporation Law • Improve grid connections either through NESCO or the PSEC¹ raising capital Actions Deliverables Infrastructure Initiative Lead E.4.2: Permanent Secretary, Ministry of Energy and Water Resources Recommended timeline E.4.2 Create an investment plan for potential NESCO's/PSEC1's profits and opportunities to expand grid access • Estimate the total unserved energy demand and residents' ability to pay, prioritizing areas with high GDP/social impact potential and a dense population within agro-hubs, food-processing and mining areas Assess the required infrastructure (e.g., additional transmission lines, transformers, meters) to connect agro-hubs, food-processing and mining areas Estimate the required investments and potential revenues from proposed connections (e.g., initial capital expenditure, cash flow) Total unserved energy demand and residents' purchasing power in high GDP/social impact and dense population areas List of required infrastructure for new connections 3 months 3 months Estimated investment costs and forecasted revenues from connections 3 months Assess profitability of connections, prioritizing the 5 most profitable agro-hubs, food-processing and mining areas . Detailed profitability analysis of proposed connections 4 months Note that the involvement of PSEC1 in initiatives E.4.2 and E.4.3 is dependent on the completion of initiative E.4.1 1. Plateau State Energy Corporation Potential quick-win 161 Copyright 2019 by Boston Consulting Group. All rights reserved. A#163E.4 Energy: Implement planned laws and increase grid connections (III/III) Initiative objective • Publish signed Energy Corporation Law Infrastructure Initiative Lead E.4.3: Permanent Secretary, Ministry of Energy and Water Resources Improve grid connections either through NESCO or the PSEC5 raising capital Actions E.4.3 Encourage NESCO and PSEC to raise capital and expand transmission Convene NESCO/PSEC5 and their stakeholders to consider expanding coverage to identified profitable agro-hubs, food-processing and mining areas based on profit potential Work with other NESCO/PSEC5 stakeholders¹ to convince board to take on debt from development banks (e.g., China's EXIM Bank, IFC4), donors (e.g., USAID) or to attract PPPs² to fund expansion using favorable long term profit-split ratio, tax holidays etc. e.g., In 2015, Edo took debt from several institutions, including IFC4, OPIC³ etc., to build the Azura power plant Lobby NESCO/PSEC5 to subsidize connection costs to low-income communities within existing distribution coverage Deliverables Recommended timeline NESCO's/PSEC5'sdecision on expanding 2 months coverage Detailed incentive structure for potential PPPs or lenders Detailed connection costs for different customer type i.e., low, mid and high- income segment • 3 months • 6 months Stakeholders Ministry of Energy and Water Resources NESCO Investments Limited Other NESCO Stakeholders¹ PSEC5 and its stakeholders Resources Note that the involvement of PSEC¹ in initiatives E.4.2 and E.4.3 is dependent on the completion of initiative E.4.1 Metrics 1. Plateau State, Benue State, Nasarawa State, Nigerian Mining Corporation etc. 2. Public Private Partnerships 3. Overseas Private Investment Corporation 4. International Finance Corporation 5. Plateau State Energy Corporation Increase in number of new connections Potential quick-win 162 Copyright 2019 by Boston Consulting Group. All rights reserved. A#164E.5 Energy: Expand existing efforts to enable mini-grid investments (I/III) Initiative objective . Turn Plateau into an attractive hub for mini-grid energy donors and investors Actions E.5.1 Improve potential for mini-grid investments Update the Plateau State rural electrification plan to prioritize the 550 potential sites for mini-grid investments based on the agriculture, mining, and tourism high priority areas Continue to demonstrate mini-grid potential Partner with REA² to launch pilots at additional agro-hubs, food-processing and mining areas e.g., FG³ partnered with REA² through Energizing Economics Initiative" to launch 3 pilots at Sabri Gani (Kano), Ariaria (Abia) and Sura mkt4 (Lagos) Work with ICT Development Agency to collect data on mini-grid success of pilots in Excel, Google Docs etc., and make accessible to private investors Deliverables . Initiative Lead E.5.1: Permanent Secretary, Infrastructure Ministry of Energy and Water Resources Recommended timeline Revised Plateau State Rural Electrification plan 6 months Estimated costs and likely impact of pilots 3 - 5 months ⚫ Accessible profitability data on mini-grid pilot success 6-9 months 1. Local Government Area 2. Rural Electrification Agency 3. National Electricity Regulatory Commission Potential quick-win 163 Copyright 2019 by Boston Consulting Group. All rights reserved. A#165E.5 Energy: Expand existing efforts to enable mini-grid investments (II/III) Initiative objective Infrastructure . Turn Plateau into an attractive hub for mini-grid energy donors and investors Initiative Lead E.5.1: Permanent Secretary, Ministry of Energy and Water Resources Actions Attract investors and donors Partner with donors (e.g., GIZ) to train mini-grid energy focal person on investor and donor relations Develop a document with Plateau State Rural Electrification Plan and collected data from pilots to market mini-grid potential to investors and donors (e.g., Rockefeller, USAID's Power Africa) Enable financing opportunities Work with development banks (e.g., China's EXIM bank, IFC1, BOI²), microfinance banks to provide access to mini- grid financing (e.g., solar energy) Deliverables Training sessions for mini-grid focal person Robust marketing document for investors and donors Easier access to mini-grid financing for investors, SMEs5, households etc. Rwanda 1. International Finance Corporation 2. Bank of Industry Recommended timeline 3 months • 12-15 months 6 months Potential quick-win 164 A Copyright 2019 by Boston Consulting Group. All rights reserved.#166E.5 Energy: Expand existing efforts to enable mini-grid investments (III/III) Initiative objective . Turn Plateau into an attractive hub for mini-grid energy donors and investors Initiative Lead E.5.2: Permanent Secretary, Infrastructure Ministry of Energy and Water Resources Recommended timeline Actions E.5.2Improve demand for mini-grids • Work with state government to ensure consistent funding for government MDAs currently running on mini-grid solutions(e.g., Ministry of Energy & Water Resources) Gather and disseminate materials on how local mini-grids (e.g., solar energy) or other mini-grid energy generation enabled SMEs Liaise with Ministry of Education and ARC to integrate mini-grid energy training in school curricula i.e., technical and tertiary, and partner with private companies (e.g., Schneider Electric) to provide training (see agricultural initiatives A.3.1 and A.3.2) Stakeholders • Ministry of Energy and Water Resources Community leaders, LGA Chairmen Rural Electrification Agency Ministry of Education, ARC, ICT Development Agency 1. International Finance Corporation 2. Bank of Industry Deliverables Funding plan for government MDAs on mini-grid solutions • Disseminated materials on SMEs'² success stories using mini-grid energy Revised curricula with tenets of mini-grid energy topics Resources • Mini-grid financing BOI2, IFC1, China's Exim Bank • Tertiary training - Schneider Electric ⚫ Mini-grid point of contact training - GIZ Every budget cycle 3 months • 6 months Metrics • Increase in number of investors into mini-grids Potential quick-win 165 Copyright 2019 by Boston Consulting Group. All rights reserved. A#167E.6 Infrastructure Water Resources: Implement planned laws and better sanitary practices (I/II) Initiative objective • Publish the signed Water Sector Law Initiative Lead E.6.1: Permanent Secretary, Ministry of Energy and Water Resources • Enforce better sanitary practices in households and companies Actions E.6.1 Gazette the Water Sector Law and enforce provisions Estimate costs and likely impact of publishing the Water Sector Law Partner with donors(e.g., European Union) to fund gazetting the Water Sector Law in newspapers, online webpages etc. Enforce roles and responsibilities of MDAs as written in Water Sector Law, monitored by Plateau State Water Sector Regulatory Commission with quarterly reports of success to the Commissioner Deliverables Estimated costs and likely impact of Water Sector Law Published Water Sector Law • Quarterly reports from Plateau State Water Sector Regulatory Commission to the Commissioner Recommended timeline • 2 months ⚫ 3 months 3 months Potential quick-win 166 Copyright 2019 by Boston Consulting Group. All rights reserved. A#168E.6 Infrastructure Water Resources: Implement planned laws and better sanitary practices (II/II) Initiative objective • Publish the signed Water Sector Law Initiative Lead E.6.2: Permanent Secretary, Ministry of Energy and Water Resources Bangladesh Enforce better sanitary practices in households and companies Actions E.6.2 Improve quality of water through better sanitation practices • . • Republish the state-wide sanitation policy, defining fines and fees for non- compliant households and companies e.g., Bangladesh introduced a National Sanitation Strategy in 2015 to improve water quality Work with Water and Sanitation agencies (e.g., PRUWASSA¹, PEPSA) to develop and implement an approach to end open defecation Work with Water and Sanitation agencies (e.g., PRUWASSA¹, PEPSA) to monitor adherence to sanitation policy & defecation strategy, fining non- compliant residents Partner with NGOs/donors (e.g., Pure Earth, WHO5) to inspect mine tailings for water contamination and enforce fines Partner with donors (e.g., World Bank's WSP2, BMGF³) to fund programs for sanitation and water quality issues at agro-hubs & mining areas e.g., Building more latrines at agro-hubs, markets etc. Changing old water pipes, i.e., from asbestos to ductile-made CLTS4 program, educating miners on sanitation Stakeholders Ministry of Energy and Water Resources Deliverables Published sanitation policy with fines and fees for non-compliant households and companies Monthly report on adherence rate to sanitation policies Monthly report on adherence rate to sanitation policies Recommended timeline 3 months 6 months Monthly Fines collected from non-compliant miners 3 months List and estimated costs of proposed programs to address water quality issues 6 months Resources Metrics Ministry of Environment and Health • PEPSA6 PRUWASSA¹ Funding gazette of Water Sector Law European Union Funding water quality programs World Bank, Federal government program to end open defecation 1. Plateau Rural Water Supply and Sanitation Agency 2. Water and Sanitation Program 3. Bill and Melinda Gates Foundation 4. Community-Led Total Sanitation 5. World Health Organization 6. Plateau Environmental Protection and Sanitation Agency Increase in % of population with improved sanitary practices Potential quick-win 167 Copyright 2019 by Boston Consulting Group. All rights reserved. A#169E.7 Water Resources: Prepare Water Board for commercialization (I/II) Initiative objective Ensure proper oversight of expenditures Maximize collections from existing revenue streams • • Reduce skill gap in manpower Infrastructure Initiative Lead E.7.1: Chairman, Plateau State Water Board E.7.2: Chairman, Plateau State Water Board E.7.3: Chairman, Plateau State Water Board Recommended timeline Ivory Coast Bangladesh Actions E.7.1 Improve collections from existing connections Make a list of over-billing complaints from customers due to poor quality of meters i.e., meters registering air flows, bad meters Partner with donors (e.g., FDA1, European Union) to replace meters with high-quality prepaid ones e.g., in 2018, FDA¹ partnered with the Ivorian gov't to provide -22k smart meters to affected customers Work with ICT Development Agency to create a separate payment platform for the Water Board in order to ensure all fees paid to the Water Board are tracked to prove Water Board profitability E.7.2 Reduce losses through water theft and leakages Institute a task force to identify illegal customer connections and other sources of water theft or leakage e.g., pipe-breaks Work with the Ministry of Energy and Water to fine culprits of illegal connections and collect payment Partner with donors (e.g., European Union) to provide bulk meters, ensuring better tracking of dispersed volume of water to customers against actual collections E.7.3 Consider feasibility of exporting water to neighboring states (e.g., Bauchi, Nasarawa) via joint or PPP investment 1. French Development Agency Deliverables List of over-billing complaints due to poor quality of meters Estimated costs and likely impact of meter replacements Clear payments assigned to the Water Board List of illegal customer connections and other sources of water theft/leakage Fines for illegal customer connections Estimated costs and likely impact of bulk metering systems Decision on export profitability and feasibility 2 months 3 months 6 months • 3 months 1 month 3 months 12 months Potential quick-win 168 Copyright 2019 by Boston Consulting Group. All rights reserved. A#170E.7 Water Resources: Prepare Water Board for commercialization (II/II) Initiative objective Ensure proper oversight of expenditures Maximize collections from existing revenue streams • • Reduce skill gap in manpower Infrastructure Initiative Lead E.7.4: Chairman, Plateau State Water Board Actions E.7.4 Seek partnerships to train unskilled manpower . Identify unskilled manpower in agencies and department, including specific gaps for training (e.g., water and waste management planning, operations analysis) Partner with donors (e.g., European Union) to retrain unskilled manpower at educational institutions Work with the European Union, private companies, and other state utilities to revive or grow staff training partnerships (e.g., with Uganda's Ministry of Water and Environment) through online chats, quarterly training workshops etc. (e.g., Partnership for Clean Water in USA shares knowledge across water utilities to conduct assessments and optimize operations) Stakeholders Ministry of Energy and Water Resources Plateau State Water Board ICT Development Agency 1. French Development Agency Deliverables List of unskilled manpower, including specific gaps for training Recommended timeline 2 months Estimated costs and likely impact of manpower training 3 months ⚫ 6 months Partners and partnership model identified Resources Funding purchase of meters FDA1, European Union Funding training and Uganda partnerships European Union Metrics • Increase in revenue collections Decrease in cases of water thefts and leakage Increase in % of skilled manpower Potential quick-win 169 Copyright 2019 by Boston Consulting Group. All rights reserved. A#171Infrastructure - Energy & water Case studies 170#172E.5.1 Backup Infrastructure Energy: Rwanda leveraged off-grid energy solutions to improve electrification Rwanda • • • Context Households in Rwanda have a low electricity access rate: 51% overall, including 37% connected to the grid and 14% using off-grid technologies Rwanda has set a target of 100% access to electricity by 2024 Off-grid solutions such as solar home systems and mini-grids are viable alternatives to grid connections, which takes time to establish Rwanda Energy Group estimates that 48% of all households will have off- grid solutions by 2024, a 34 percentage points increase from current situation What did Rwanda do? The Government of Rwanda signed a $48.94m funding agreement with the World Bank in 2017 for off-grid electrification The fund enabled qualified savings and credit co-operatives (SACCOs) and commercial banks to open lines of credits to provide affordable loans to households and small business for solar system purchases 24 private companies have signed partnership agreements with Rwanda Energy Group to provide solar home systems Rwanda is conducing a national campaign to change people's mindsets to buy and use solar home systems, instead of waiting for grid connections 1. Multilateral Development Banks Source: The New Times; Media Coverage עעע || || || Key successes Recognized the importance of off-grid solutions in achieving the national electrification targets Successfully leveraged the fund from MDBs¹ to offer affordable loans to households and small businesses for the purchase of off-grid systems Improved locals' interests in off-grid solutions through the national campaign organized to change people's mind-sets to buy and use solar home systems Learnings for Plateau State Map out the electricity demand and supply and identify the need and magnitude for off-grid solutions Secure initial funding from MDBs¹ or other sources and develop partnerships with local banks to offer affordable loans to households and small businesses that will relay on off-grid solutions Develop partnerships with off-grid system providers to offer end-to- end solutions Launch a state-wide campaign to demonstrate the benefits of off- grid systems 171 Copyright © 2019 by Boston Consulting Group. All rights reserved. A#173Backup E.6.2 E.7.3 Infrastructure Water Resources: Bangladesh leveraged World Bank funds and a PPP model to deliver safety water and hygienic sanitation to rural population A · Context Bangladesh's population density is among the highest in the world; 75% of its population, or 109.3 million, live in rural areas 13% of the country's water sources have a 'dangerous' level of arsenic; 80% of sampled private piped-water was contaminated with E. coli bacteria; other issues include water salinity, iron & other bacterial pathogens Quality sanitation coverage is another concern with 35% of the country's latrines being identified as unclean What did Bangladesh do? The Government of Bangladesh (GoB) developed a National Sanitation Strategy in 2005 to promote hygienic latrines The GoB and the World Bank co-launched a project in 2012 to increase the provision of safe water & hygienic sanitation in rural areas ⚫ The project adopted a Build-Operate-Transfer PPP model for the construction of the piped water supply schemes The private sector helped to strengthen the institutional and technical capacity of the government to provide safe water and sanitation || || || Key successes Bangladesh Constructed 55,000 household latrines with improved sanitation access to 247,500 people; trained 450 local companies to build latrines Constructed 37 piped water schemes, rehabilitated 18 existing water schemes, built 20,475 deep tube wells, rain water harvesting structures, pond sand filter & ring wells Provided safe water access to 1,480, 172 people through both piped water schemes and non-piped water points Successfully identified private sponsors through a PPP model Learnings for Plateau State Build integrated programs and strategies to address sanitation and water quality issues at the same time Adopt an appropriate PPP model to leverage the private sector's investment and knowledge Consider using Multilateral Development Banks' funds and other donations or grants as an initial jump start Build the government's institutional and technical capacity in delivering safe water and hygienic sanitation Source: World Bank; Media Coverage 172 Copyright © 2019 by Boston Consulting Group. All rights reserved.#174E.7.1 Water resources: Ivory Coast partnered with FDA1 to revive its water management system with smart meters Infrastructure Context Ivory Coast has been facing frequent water management issues : • • • Metering system requires physical checking in order to assess the amount that citizens should pay In Abidjan, daily volume of collected wastewater is close to 190K m3 Reduced rainfall resulting in 3 weeks without running water Increasing population growth, growing urbanization coupled with climate change made it more complicated to supply water What did Ivory Coast do? French Development Agency supported the Ivoirian government by funding an immense water management project: • • • • Funding provided in form of a 30.5M Euros loan in the span of 5 years 22,000 smart meters have been installed as of April 2018 Ivory Coast Water Development Company (SODECI) plans to provide almost 50 000 households with smart meters with this funding Funding with a debt reduction and development contract (C2D) Monitoring of ground water to avoid potential future shortages Build water pipelines to 12,000 homes in poorer parts of Abidjan Key successes Ivory Coast Smart meters helped in cost cutting and decreasing consumption: Citizens that use smart meters pay 66% less on their water bill than average Water consumption is calculated automatically, thus eliminating the physical checking process of the meter Advantageous debt repayment with the C2D contract (donations from FDA¹) Receipt of the bill by smartphone in real time reduced wastewater Learnings for Plateau State Seek donor support (e.g., FDA¹) to fund water programs rather than standard loans • International agencies like the FDA can offer very flexible funding to improve the water management system Smart meters provide key support to water management: • • Smart meters usage is an emerging trend in African countries Smart meters implementation alone isn't enough to revamp water management but it does decrease cost and consumption 1. French Development Agency Source: FDA1 website; SODECI website; Media coverage 173 Copyright 2019 by Boston Consulting Group. All rights reserved. A#175Infrastructure - Coordination Detailed initiatives 174#176Common issues emerged from interviews, highlighting need for an overall development plan involving all stakeholders 2 Inadequate planning & communication of projects among ministries, departments and agencies (e.g., sewer pipes cut during road construction) Overlapping responsibilities among ministries, departments and agencies (e.g., road construction - Ministry of Works and RAAM¹) 3 4 Poor data collection & sharing among ministries, departments and agencies (e.g., vehicle registration - Ministry of Transport and IRS²) Poor financing mechanism for ad hoc projects (e.g., maintenance of roads, boreholes) 5 9 Limited participation of private sector players and donor agencies (e.g., private sector investments in off-grid energy generation) Insufficient skilled manpower for technical operations 1. Rural Access and Agricultural Marketing 2. Board of Internal Revenue Service#177E.8 Infrastructure coordination: Create an overall development plan involving all stakeholders Initiative objective Initiative Lead . Ensure coordination and data sharing among infrastructure MDAs Ensure timely coordination and release of project funds E.8.1: Plateau State Infrastructural Unit Infrastructure E USA Actions E.8.1 Ensure project planning and communication among infrastructure MDAs¹ Create a map of existing, on-going and future infrastructure (roads, bridges, electric connections, water and sewer pipes), and work with ICT Development Agency to publish online (e.g., Google Maps KMZ) Create strategy for infrastructure development (e.g., Kaduna Infrastructure Master Plan) linked to agriculture development plan (i.e., agro-hubs), mining goals, JMDB's planned industrial areas (see initiatives A.2.4, B.2.3 and C.1.2) Improve coordination among infrastructure MDAs¹ by creating a state infrastructural unit (with a member from each stakeholder) to monitor budgeting & funding requests coordination among them before approval (see next slide for details) Stakeholders • Plateau State Infrastructural Unit • Ministries of Works & Transport • Ministry of Energy and Water Resources Deliverables Published map of existing, on-going and future infrastructure on a yearly basis Published infrastructure development plan for the next five years See next slide Resources Recommended timeline 3 months 12 months See next slide Metrics • Percentage of projects shared across MDAs Ministry of Lands and Survey, Ministry of Environment Efficiency Unit; Ministry of Finance ICT Development Agency 1. Infrastructure MDAs include Ministry of Works, Ministry of Transport, and Ministry of Energy and Water Resources Source: Media Coverage Potential quick-win 176 Copyright 2019 by Boston Consulting Group. All rights reserved.#178Initiative lead: Plateau State Infrastructural Unit Recommendation to improve infrastructure coordination among MDAS (I/III) Model: Create processes to ensure coordination among infrastructure MDAs¹ in budgeting and funding requests $ Budgeting Funding requests 1. Infrastructure MDAs include Ministry of Works, Ministry of Transport, and Ministry of Energy and Water Resources 177 Copyright 2019 by Boston Consulting Group. All rights reserved.#179Budgeting Recommendation to facilitate infrastructure coordination among MDAS (II/III) Budgeting: Work with Ministry of Budget and Planning to ensure that budget approval is given only after verification of budget coordination among infrastructure MDAs¹ Process (once in a year) - Coordination Works² Transport Energy and Water resources - . Approval Legislature's Budget and Planning and Governor's approval Actions Identify future projects for collaboration & asset sharing with other infrastructure MDAs¹ Responsible party Prioritize and phase projects with other infrastructure MDAs¹ Align on project plans, costs and timeline with other infrastructure MDAs¹ Prepare individual budget and review with other infrastructure MDAs¹ for their signed approval before submission Each infrastructure MDA - Ministries of Works, Transport, Energy and Water Resources Confirm infrastructure MDAs¹ have aligned on projects, if not, reject proposed budgets Review budgets Ensure that jointly with infrastructure MDAs¹ for overlapping items Send budgets project costs in jointly to each legislature and infrastructure governor for MDAs"¹ budget approval are not misrepresented Ministry of Budgeting & Planning 1. Infrastructure MDAs include Ministry of Works, Ministry of Transport, and Ministry of Energy and Water Resources 2. Ministry of Works is responsible for liaising with RAAM, Fadama and PADP to understand and collaborate on road construction projects 178 Copyright © 2019 by Boston Consulting Group. All rights reserved.#180Funding requests Recommendation to facilitate infrastructure coordination among MDAs (III/III) Funding requests: Work with Efficiency Unit and Ministry of Finance to prevent approval of memos and release of funds until verification of funding coordination among infrastructure MDAs¹ Coordination Approval $ Process (quarterly) - Works² Transport Energy and Water resources - . Cash Liquidity Management Committee³ (see initiative H.3.3) Finance Actions Align timeline for projects collaboration Prepare memos for funds jointly with other requiring with other infrastructure MDAs¹ infrastructure MDAs¹ Responsible party Ensure that other infrastructure MDAs¹ sign-off on memos as an evidence of alignment Submit memos to efficiency unit, with evidence of infrastructure MDAs" alignment and details of proposed contractor Each infrastructure MDA - Ministries of Works, Transport, Energy and Water Resources Confirm infrastructure MDAs¹ have aligned on memos, if not, reject memos Review memos to ensure that they are aligned with the approved budget Approve memos and send to Ministry released of Finance for disbursement of funds -Cash Liquidity Management Committee³. Ensure that funds are simultaneously and in line with project timeline Ministry of Finance 1. Infrastructure MDAs include Ministry of Works, Ministry of Transport, and Ministry of Energy and Water Resources 2. Ministry of Works is responsible for liaising with RAAM, Fadama and PADP to understand and collaborate on road construction projects 3. Committee includes Price Intelligence Unit, Bureau of Public Procurement, Ministry of Finance, Ministry of Budget & Planning 179 Copyright 2019 by Boston Consulting Group. All rights reserved.#181Backup E.8.1 Infrastructure Infrastructure coordination: New York metro area formed a 16-agency coalition TRANSCOM to coordinate transport construction projects - USA • • Context New York metro is the most populated and congested area in the U.S. In mid-1980s, various transport construction projects in the New York metro area at times led to the reduction of critical capacity due to simultaneous construction in parallel corridors There was a strong need for greater coordination of construction projects among the respective agencies TRANSCOM was created in 1986 and gained support and funding from all 16 major transport agencies in New York, New Jersey and Connecticut Key successes Ability to provide a regional outlook and regional understanding of work zone impacts among the three states in the NY metro area Ability to provide multimodal coordination, including both roads and public transit systems, the latter could provide vital alternative travel options during road construction A multi-purpose platform that also includes incident management and ITS implementation coordination • What did TRANSCOM do? TRANSCOM hosts a project database and an annual meeting to carry out its construction coordination efforts In December, TRANSCOM sends the member agencies the project coordination database and ask them to update it with their project in the coming year TRANSCOM then produces a list of projects and potential conflicts, which will be discussed at the March annual meeting to address the conflicts TRANSCOM also coordinates transport incident management and Intelligent Transportation Systems (ITS) implementation || || || Learnings for Plateau State Work with the ICT Development Agency to create project database and master map for all related infrastructure projects Convene other infrastructure MDAs for coordination meetings on a periodic and as-needed basis to address any conflicts and foster win- win solutions to achieve development goals Source: TRANSCOM; Federal Highway Administration (USA); BCG Analysis 180 Copyright 2019 by Boston Consulting Group. All rights reserved.#182Human Capital 181#183Goal Improve the state of Plateau's human capital through investments in education and healthcare#184On average, countries that improve education and health experience higher GDP growth Relationship between GDP and Primary education & Health (evidence from 120 countries) Delta GDP (2008 - 2017) 12 8 G Implication Plateau State should invest in improving primary education and health as enablers for GDP growth 0,0 Global Powerhouses Delta Primary Education & Health (2008 - 2017) Rest of the World Note: The countries in the group Global Powerhouses constitute 35 countries with the largest populations and/or the largest economies. Source: Global Competitiveness Index; World Bank; BCG analysis 183 Copyright © 2019 by Boston Consulting Group. All rights reserved.#185นี่ 이어 do Human capital Education: Although Plateau literacy leads some peers, rate of growth still lags other Nigerian states Literacy (% of 2015 population able to read and write) Population vs. Literacy (2011 - 2015) Population growth rate (%) Copyright 2019 by Boston Consulting Group. All rights reserved. 3.6 Rivers Average population growth rate (-3.3%) Akwa Ibom Borno 3.4 Ogun National Average Osun 71 75 76 93 3.2 -Delta Ekiti Imo (53%) (51%) 76 Benue 65 Ondo Enugu Kwara Nasarawa 3.0 Kaduna (29%) Kogi- (34%) Cross River Adamawa 11 11 Sokoto Zamfara Gombe 33 Bayelsa Taraba (23%) Anambra Ebonyi Plateau Kwara Global peers Local peers Kogi Cross River Nigeria's best-in-class Annual literacy growth rate (%) Global peers (xx%) Starting literacy rate Source: King Makers; UNESCO report on National Literacy Action Plan for 2012 - 2015; National Bureau of Statistics; CBN Statistical Bulletin 2018; BCG analysis 184 2.8 I Ghana Pakistan 2.6 5 Abia Plateau (45%) Edo (53%) Best performers 10 15 20 Plateau Other states#186Human capital Education: Plateau suffers from a lack of employed qualified teachers and limited primary school success 100 Plateau's education system compared to peers 15 75 50 50 16 55 25 51 30 30 15 0 % of qualified teachers % of children enrolled in primary schools Absolute # of teachers % of children that complete primary school Children aged 5-11 % of children that move to JSS1 Relevant population Local peers¹ Plateau Nigeria's best-in-class Global peers² National average Only half of Plateau's children go to school, and about 30% complete primary education Plateau lags peers and the national average in most indicators Plateau especially lags in the proportion of qualified teachers 1. Kwara, Kogi, Benue, Zamfara, Sokoto, Gombe, Cross River 2. Ghana, Pakistan, Angola, Myanmar, Nicaragua, Vietnam, Honduras Source: CEIC database; Nigeria Data for Africa; BCG analysis. Please note that the data source for this slide differs from the data source for the previous slide 185 이어 do นี่ Copyright 2019 by Boston Consulting Group. All rights reserved.#187Human capital Inadequate teacher employment • Qualified teachers left out of workforce due to insufficient funding Limited counterparty support reduces access to donor funds -3 teachers/1k pupils compared to UNESCO's norm of -3 teachers/100 pupils • Lack of coverage in rural areas due to difficulty in finding teachers • Little incentive for teachers in urban areas to move to rural areas 이어 do นี่ Copyright 2019 by Boston Consulting Group. All rights reserved. Education: Several factors affect success of Plateau's students Poor quality control Lack of a consolidated tracking system for students and teachers inhibits State's ability to identify unqualified teachers, and monitor overall student and teacher success Weak supervision of examination centers, especially those in private schools, leading to increased cases of malpractice Poor access to educational institutions • • • Poor road networks especially in rural areas decrease accessibility Inadequate number of schools - an avg. student is within 5 - 7km of school compared to target of 1-3km of school High costs of secondary education as well as minimal fees for uniforms, books etc., prevent less-privileged children from schooling Inadequate mix of skills upon graduation . Increasing need for computer skills in labor force unmet by current curriculum in secondary and tertiary education Skill gaps reported in Ministries of Water, Energy, and Health in new graduates to perform technical operations Source: Right To Education report; Stakeholder interviews 186#188Health: Although Plateau leads local peers, it lags global peers and Nigerian best-in-class states... Plateau leads local peers in physician density and primary healthcare centers, however significantly lags global peers Physician density per 100k population, 2016 Primary healthcare centers per 100k population, 2016 Secondary & tertiary healthcare centers per 100k population, 2016 Global peers2 Nigeria's Best-in-class National average 22 Local peers¹ 13 Plateau 27 36 56 17 21 20 20 41 43 1. Kwara, Kogi, Benue, Zamfara, Sokoto, Gombe, Cross River 2. Ghana, Pakistan, Angola, Myanmar, Nicaragua, Vietnam, Honduras Source: NBS social statistics report; UNDP National Human Development Report for Nigeria; Nigeria Data for Africa; BCG analysis 1 3 2 11 11 187 Copyright 2019 by Boston Consulting Group. All rights reserved.#189Health: ...leading to a persistent perception of poor care Human capital Plateau has focused on vaccines, AIDS prevention, and insurance... Partnerships with international donor agencies such as UNICEF, WHO, EU etc. to provide vaccine-immunization services ...but healthcare quality has remained stagnant % of female population in Plateau reporting poor healthcare services --1%- Collaboration with AIDS Prevention and Intervention in Nigeria (APIN) to provide infrastructure and train healthcare personnel 79 75 71 73 76 Establishment of a contributory health management agency to provide health insurance for medical services to residents 2011 2012 2013 2014 2015 Source: King Makers; BCG analysis 이어 do d 188 Copyright 2019 by Boston Consulting Group. All rights reserved.#190Human capital นี่ do 이어 Inadequate health personnel employment . • Lag in replacing retired workforce due to insufficient funding Insufficient health personnel - -27 physicians/100k population compared to WHO's norm of -220 physicians/100k population Inadequate services, especially in rural areas, due to limited training of medical personnel Little incentive for health personnel in urban areas to move to rural areas Limitations of infrastructure Copyright 2019 by Boston Consulting Group. All rights reserved. Health: Several factors hinder easy access to quality healthcare services in Plateau 1. • Bad road networks especially in rural areas decrease accessibility • • • Inadequate coverage - 3 out of 17 LGAs¹ do not have a general hospital Need for residents to use personal transport given the insufficient number of ambulances Poor power & water supply especially in rural areas limits hospitals' ability to offer consistent services Inconsistent service provision • • • Unclear communication and process for funding release between Ministries of Finance and Health cause delays Occasional unavailability of drugs Lack of a consolidated tracking system for health personnel inhibits State's ability to monitor their qualifications and performance Insufficient public awareness on physician rating systems reduces ability of patients to evaluate health personnel Local Government Areas Source: Stakeholder interviews; Press Research; BCG 189#191How does Plateau address its human capital issues? ING THIS GYU LUCK#192-Benchmark- Objectives- F Five initiatives to improve human capital Education Health F.1 F.2 F.3 F.4 F.5 Human capital Increase number of teachers and children in schools Ensure quality of teachers and curriculum Grow ICT skills Expand access to health care Ensure quality of health care and service delivery Ensure that schools have adequate number of teachers across all subject areas Improve enrolment rate across all levels of education • Reduce the number of unqualified teachers Improve performance of students and teachers Reduce skill gap in labor force Improve the software development skills of Plateau youths Ensure that health centers have an adequate number of personnel Expand the reach of current health personnel Improve the performance of health personnel Minimize inefficiencies in service provision Nigeria Nigeria China South Africa Myanmar * Ethiopia India 191 นี่ 이어 Copyright 2019 by Boston Consulting Group. All rights reserved.#193Education Detailed initiatives 192#194F.1 Education: Increase the number of teachers and children in schools (I/II) Initiative objective • • Ensure that schools have adequate teachers across all subject areas Improve enrolment rate across all levels of education Actions Deliverables Human capital 이어 do นี่ Initiative Lead F.1.1: Perm. Sec. Ministry of Education, PSUBEB² Chairman F.1.2: Perm. Sec. Ministry of Education, PSUBEB² Chairman Recommended timeline F.1.1 Increase the number of teachers • Prioritize counterparty funding for UBE1 (primary school) donor support for recruiting teachers Reserve funds at the beginning of the year for automatic recruitment of retiring teachers Partner with NGOs such as "Teach for Nigeria” to provide teachers F.1.2 Expand the distribution of teachers to rural areas Create policy mandating rotation of teachers to rural communities in their district, e.g.: New teachers: First 2 or 3 years of employment Liaise with Teachers Service Commission to create additional incentives for urban teachers willing to be redeployed to rural communities outside their districts e.g., tax rebates, free housing Budget prioritization for counterparty funds (see budgeting section) Defined %budget to be reserved for counterparty funding and new teacher employment List of locations and potential NGOs Published policy on teacher rotation Incentive structure for teacher redeployment and rotation List of urban teachers willing to be redeployed outside their districts 1. Universal Basic Education 2. Plateau State Universal Basic Education Board In next budget cycle • In next budget cycle • 3 months • 3 months • 6 months • 6 months Potential quick-win 193 Copyright 2019 by Boston Consulting Group. All rights reserved.#195นี่ 이어 do Copyright 2019 by Boston Consulting Group. All rights reserved. Nigeria F.1 Human capital Education: Increase the number of teachers and children in schools (II/II) Initiative objective . . Ensure that schools have adequate teachers across all subject areas Improve enrolment rate across all levels of education Actions F.1.3 Improve the number of children in schools • Seek funding from donors (e.g., World Bank's Nigeria-Kaduna State Economic Transformation Program) to build new schools and upgrade existing ones Institute state law (e.g., Federal Gov't UBE² Act), making primary education compulsory for children aged 5 to 11, and seek donors (e.g., BMGF1's Global Education Program in Kaduna) to provide support Maintain free lunch program at primary education, pilot free education and lunch program for JSS³ in selected LGAs, and partner with donors (e.g., BMGF1's Global Education Program in Kaduna) to support and subsidize other supporting fees (e.g., school uniforms) Stakeholders Ministry of Education Plateau State Universal Basic Education Board • Teachers Service Commission Deliverables Initiative Lead F.1.3: Perm. Sec. Ministry of Education, PSUBEB5 Chairman • Prioritized list of schools for upgrading and LGAs for building schools • • • Gazetted law on compulsory primary education Cost estimate and likely impact of free education and lunch program at JSS³ Recommended timeline 6 months 6 months 6 months Metrics Resources Counterparty fund-state government Teacher replacement fund-state gov't Infrastructure funding for schools World Bank Funding for pilot free education and lunch program Bill and Melinda Gates Foundation 1. Bill and Melinda Gates Foundation 2. Universal Basic Education 3. Junior Secondary Schools 4. Local Government Areas 5. Plateau State Universal Basic Education Board Increase in enrolment rate Increase in number of teachers Increase in number of teachers in rural areas Potential quick-win 194#196d do 이어 Nigeria F.2 Education: Ensure quality of teachers and curriculum (I/IV) Initiative objective • Reduce the number of unqualified teachers • Improve performance of students and teachers Reduce skill gap in labor force Actions F.2.1 Institute a state-wide push to improve teacher quality Deliverables Human capital Initiative Lead F.2.1: Perm. Sec. Ministry of Education, PSUBEB5 Chairman Recommended timeline Copyright 2019 by Boston Consulting Group. All rights reserved. India Create a list of current teachers across all levels of education Create and communicate a strategy for reducing number of unqualified teachers (e.g., Kaduna State Education Strategic Plan) Teachers with no/falsified degrees, training for poor-performing teachers) Review qualifications i.e. educational degrees of teachers-minimum of NCE² and replace teachers with no/falsified degrees Work with PSUBEB5 and ERC4 to publish school performance by LGA³ from exam results (e.g., FSLC6, WAEC7, NECO¹, promotion exams), identifying weak subject areas Engage the Quality Assurance Team at PSUBEB5 and Zonal & Area officers at Ministry of Education (secondary) to jointly identify persons within their agencies or appoint trustees from schools to monitor and report teacher quality in each LGA³ in identified weak subject areas • List of teachers at all levels in each LGA³ 2 months Published education strategic plan • 6 months List of teachers with no/falsified degrees for replacement Published school performance by LGA³, and identified subject gaps based on exam results Detailed plan for each LGA³, identifying responsible persons or trustees to conduct monitoring • 3 months Every year • 3 months 1. National Examination Council 2. National Certificate in Education 3. Local Government Areas 4. Educational Resource Centre 5. Plateau State Universal Basic Education Board 6. First School Leaving Certificate 7. West African Examination Council Potential quick-win 195#197d do 이어 Copyright 2019 by Boston Consulting Group. All rights reserved. F.2 Education: Ensure quality of teachers and curriculum (II/IV) Initiative objective • • Reduce the number of unqualified teachers Improve performance of students and teachers Reduce skill gap in labor force Actions • Work with the Quality Assurance Team at PSUBEB² and Zonal & Area officers at Ministry of Education (secondary) to conduct yearly competency tests, identifying poor-performing teachers and weak subject areas Work with the ICT Development Agency to track results from monitoring exercises and historical teacher competency tests by developing a pilot reporting system in Excel or leveraging a mobile SMS system where reports are sent through a USSD code Set up an incentive structure to reward high-performing teachers e.g., increased yearly bonus, faster promotion, preferential treatment in rotation decisions, public service excellence awards Seek donors (e.g., BMGF1's Global Education Program in Kaduna) to fund training schemes for poor-performing teachers Deliverables Human capital Initiative Lead F.2.1: Perm. Sec. Ministry of Education, PSUBEB² Chairman List of poor-performing teachers by identified subject area gaps e.g., STEM³ Recommended timeline Every year Consolidated tracking system for teacher records 12 months List of high-performing teachers and a clear incentive structure for rewarding them Assessment of required funding per teacher and list of training schemes • 6 months • 8 months 1. Bill and Melinda Gates Foundation 2. Plateau State Universal Basic Education Board 3. Science, Technology, Engineering and Mathematics Potential quick-win 196#198이어 นี่ do F.2 Education: Ensure quality of teachers and curriculum (III/IV) Initiative objective • Reduce the number of unqualified teachers Improve performance of students and teachers Reduce skill gap in labor force Actions F.2.2 Improve long-term student skills and success • . • • Work with ICT Development Agency to create a system (e.g., Excel sheet, Google Docs) to track school/LGA¹ performance Partner with exam bodies (e.g., WAEC², NECO³) or use yearly promotion exams to access secondary schools performance data by school/LGA1 Identify subject area gaps in primary & secondary schools performance Develop a temporary teacher rotation plan within LGAs to identified "passing centers" during exams and work with ERC4 to ensure that teachers are rotated for supervision during exams Work with ERC4 to ensure that exam bodies (e.g., WAEC2, NECO³) regularly rotate staff across different schools during examinations Work with ERC4 and exam bodies (e.g., WAEC², NECO³) to ensure secondary students are registered for examinations at only schools where they had their secondary education Continue to work with donors (e.g., GIZ's representatives in agriculture) to assess current and future skills in agricultural, food-processing and mining sectors Deliverables Tracker by school/LGA1 Initiative Lead Human capital F.2.2: Perm. Sec. Ministry of Education, PSUBEB5 Chairman Access to WAEC2's, NECO³'s database and results of yearly promotion exams List of subject area gaps by school/LGA1 Detailed teacher rotation plan to passing centers Detailed staff rotation plan from WAEC², NECO³ etc., during examinations Schooling records of each secondary student registering for exams List of requisite skills in GDP- contributing sectors Recommended timeline ⚫ 3 months • 2 months 3 months 3 months • 3 months ⚫ 3 months 1. Local Government Area 2. West African Examination Council 3. National Examination Council 4. Educational Resource Centre 5. Plateau State Universal Basic Education Board 6 months 197 Potential quick-win India India China Copyright 2019 by Boston Consulting Group. All rights reserved.#199이어 China China F.2 Education: Ensure quality of teachers and curriculum (IV/IV) Initiative objective • Reduce the number of unqualified teachers Improve performance of students and teachers Reduce skill gap in labor force Actions . Align curriculum to include identified gaps in student performance and labor force Create a path to employment with private and public sector players (e.g., Ministry of Energy, food processing companies) through internship programs and connections to tertiary institutions (see agricultural initiative A.3.2) Ensure that skilled graduating students from tertiary institutions work in Plateau by partnering with private sector companies to provide incentives (e.g., reimburse the cost of tertiary education, provide income tax breaks, provide options to rotate to other states after 2 years in Plateau) Deliverables Initiative Lead Human capital F.2.2: Perm. Sec. Ministry of Education, PSUBEB4 Chairman Revised curriculum covering identified gaps List of internship programs with private and public sector players Career fairs at tertiary institutions with major companies Recommended timeline 9 months 6 months Incentive structure for skilled graduates from Plateau's tertiary institutions 3 months Stakeholders . Ministry of Education • Plateau State Universal Basic Education Board Educational Resource Centre; Teachers Service Commission • Examination bodies-WAEC², NECO³ etc. ICT Development Agency Metrics Resources • Funding for teacher training programs GIZ, Bill and Melinda Gates Foundation . 1. Local Government Area 2. West African Examination Council 3. National Examination Council 4. Plateau State Universal Basic Education Board นี่ do % of teachers qualified Cases of exam malpractice • % student success in WAEC², NECO³ etc. Potential quick-win 198 Copyright 2019 by Boston Consulting Group. All rights reserved.#200F.3 Education: Grow ICT skills Initiative objective Improve the software development skills of Plateau youths Initiative Lead F.3.1: ICT Development Agency F.3.2: ICT Development Agency Human capital 이어 d do Actions F.3.1 Improve ICT knowledge of tertiary graduates • Identify tertiary institutions willing to integrate ICT courses in their curricula by partnering with Ministry of Education and ERC1 Assess the feasibility of introducing ICT courses (e.g., software development skills) at identified tertiary institutions Create ICT courses at identified tertiary institutions by partnering with donor agencies (e.g., Zuckerberg & Chan Initiative) to fund, and with Plateau ICT hubs to provide trainings F.3.2 Build new government technology by partnering with ICT hubs and • • tertiary institutions to provide support Work with MDAs to ensure that all IT plans relating to revenue collection and data capturing are signed-off by ICT and in line with existing back- ends See initiatives B.1.3, B.2.3, C.2.3, C.3.1, D.1.1, D.3.1, D.4, E.5.1, E.7.1, E.8.1, F.2.1, F.4.1, G.1.3 and G.4 Stakeholders Ministry of Education Educational Resource Centre ICT Development Agency Deliverables List of tertiary institutions willing to integrate ICT courses in their curricula Estimated costs and likely impact of ICT courses to the government List of ICT courses created at tertiary institutions Alignment with MDAs to get a sign-off from ICT Development Agency for related IT plans Government technology for the stated initiatives Resources • ⚫ Funding for ICT trainings at tertiary institutions Zuckerberg & Chan Initiative Recommended timeline 3 months 6 months 6 - 9 months 3 months 12-24 months Metrics # of graduates of ICT training courses 1. Educational Resource Center Potential quick-win 199 Copyright 2019 by Boston Consulting Group. All rights reserved.#201Education Case studies 200#202F.2.2 Backup Human capital Education: China restructured its TVETS to prepare future agricultural workers China Context China's agriculture industry declined between 1980 and 2008, as the proportion of planting shrank even though that of fishery & forestry increased 2 major factors drove this situation: Declining number of farmers: -200M farmers had dumped farming in favor of formal employment in cities and towns Shortage of skills: Current stock of farmers were unfamiliar with new agricultural technology, which hindered further employment What did the Chinese government do? Chinese government revised TVET's curriculum to focus on 3 major areas: Practical student trainings on present job demands • • ~1/3 students received 11-15 hours of various skills training weekly TVETS placed students with agricultural SMEs for internships Career guidance and advisory services >50% of students across schools were satisfied with career counselling, and 90% believed it contributed to life planning Integration of students & teachers into community agriculture efforts School resources were used to support 12 agricultural model villages Teachers trained farmers in cultivation, pest control etc. TVETS means Technical and Vocational Education and Training Colleges || || || Key successes Students transitioned smoothly into agriculture sector Majority of students pursued agriculture after schooling - ~90% employment rate of agricultural majors across the 3 schools Employers collaborated with schools to develop more TVETS Xinjiang built a training centre for seed production and management majors, and developed eight training courses Heilongjiang established province level school-enterprise cooperation group for food majors Learnings for Plateau State Partner with schools to build a training centre for seed production, farming and processing Work with ASTC & FADAMA to identify skill gaps in the agricultural sector and partner with schools to adjust curriculum to include gaps Liaise with agro-processing companies e.g., NASCO, and communal farmers to offer students yearly one-month internship placements 1. Schools in focus are Xinjiang Agricultural Vocational Technical College, Nan Gong Vocational and Technical Education Centre, and Heilongjiang Nongken Vocational College Source: World Bank; Media coverage; BCG 201 นี่ 이어 Copyright 2019 by Boston Consulting Group. All rights reserved.#203Backup F.2.1 F.2.2 Human capital Education: Government of Haryana transformed its state public school system to improve learning levels India Context Haryana is a state in northern India, population -25M (2011). The Government of Haryana oversees 15k schools and >100k teachers, educating 2.2M children As at 2015, -44% of Haryana students could read grade II text and <30% could do simple two digit subtraction/sum What did the Government of Haryana do? Government, funded by AIFT¹, and collaborating with MSDF2 and BCG, launched Quality Improvement Program, with aim of bringing all children to grade-level competency within 7 years. Project involved 4 key levers: • • Regular competency tests for students to identify weak subject areas Bi-monthly student tests informed teachers of their weak areas Dashboards linked to results and highlighted student performance State-wide assessments for teacher training/mentoring gaps Regular teacher evaluations to track performance along with student success and to reduce teachers' absence from work Integration of social media to improve learning experience WhatsApp groups, Facebook, and Google docs were used by teachers to share notes, announcements, and to provide feedback Organizational redesign of schools to reduce multi-grade teaching 1. American Indian Foundation Trust 2. Michael and Susan Dell Foundation Source: 3ieimpact website; Media coverage; BCG || || || Key successes As at June 2019, 86% of Haryana schools at grade-level competency >80% of all students in schools able to read at class II Merged 800 co-located schools into 400, removing instances of multi- grade teaching Design and launch of a performance tracking system for >100k teachers, which rewarded overall student success Improved student learning experience through social media >10k teachers used WhatsApp in <20days to share notes Learnings for Plateau State Work with the Ministry of Education to organize bi-monthly student tests and partner with ICT Development Agency to track results Identify subject areas with consistent poor student performance and partner with donors (e.g., UNICEF) to investigate the root cause Engage the ICT Development Agency to design a system to track teacher records e.g., performance, qualifications, absence to work Partner with donors (e.g., GIZ) to offer teacher training programs Engage Ministry of Education to introduce social media platforms for note sharing, announcements and feedback purposes 202 นี่ 이어 Copyright 2019 by Boston Consulting Group. All rights reserved.#204Backup do 이이 F.1.3 F.2.1 Education: Kaduna State revamped its education system by improving enrolment rate and teacher quality Human capital นี่ Copyright 2019 by Boston Consulting Group. All rights reserved. Context Kaduna is a state in northern Nigeria, population -8M (2016). Government oversees >7k schools & >33k teachers, educating 2.1M children. With - 52% enrolment rate and -40% of teachers qualified in 2016, Kaduna State sought to improve the number of children in schools and teachers' quality across all levels of education What did Kaduna State Government do? Kaduna State Government embarked on a 6-step revamp process: Kaduna SUBEB1 tested teachers to identify unqualified ones · • • • -66% of teachers (~22k) failed the test and were asked to resign Government partnered with UNPFA² to fund recruitment of teachers -25k teachers were hired to replace sacked teachers Collaborated with Ministry of Education to prioritize STEM³ and ICT ~2.2k teachers were particularly recruited for STEM³ and ICT Introduced the free lunch program in its primary schools to incentivize parents to send children to school Expanded access by making the first nine years of schooling free Partnered with the World Bank in its school rehabilitation program -30% of 4.2k pri. schools rehabilitated to take 30-40 pupils/class Key successes Nigeria As at Dec. 2017, enrolment rate had increased by -50% from ~1.5M children to -2.1M children Nigeria's best-in-class in proportion of qualified teachers - -85% of teachers in 2017 considered fit Improved performance of students in national exams Ranked 1st among all northern states in WAEC and NECO exams Learnings for Plateau State Engage Plateau SUBEB¹ and Teachers Service Commission to conduct yearly competency tests to identify unqualified teachers Seek donors (e.g., UNFPA² ) to fund training schemes for unqualified teachers and replace post-training poor performing teachers Work with ARC and schools to prioritize curriculum & teacher improvements in subjects with poor state/LGA4 WAEC performance Make primary education compulsory for children between 5 and 11 partner with donors (e.g., Gates Foundation) to provide support Consider making junior secondary education free especially at rural areas & subsidize other fees e.g., school uniforms Consider instituting the free lunch program for secondary schools Collaborate with donors (e.g., World Bank, AfDB) to fund rehabilitation of existing infrastructure 1. State Universal Basic Education Board 2. United Nations Population Fund 3. Science, Technology, Engineering and Mathematics 4. Local Government Area Source: Media coverage; Punch Nigeria; BCG 203#205Health Detailed initiatives 204#206นี่ do 이어 Copyright 2019 by Boston Consulting Group. All rights reserved. Myanmar Myanmar F.4 Health: Expand access to healthcare (I/II) Initiative objective Ensure that health centers have adequate personnel Expand the reach of current health personnel Actions F.4.1 Increase the number of healthcare personnel • Prioritize counterparty funding for donor support (e.g., WHO) for recruiting doctors Reserve funds at the beginning of the year for automatic recruitment of retiring doctors, nurses, mid-wives etc. F.4.2 Expand the distribution of health personnel to rural areas Create policy mandating rotation of doctors, nurses etc., to rural communities in their district e.g.,: New personnel: First 2 or 3 years of employment Create additional incentives for urban doctors, nurses etc. willing to be redeployed to rural communities outside their districts e.g., tax rebates, free housing F.4.3 Expand physical coverage of health personnel in rural areas • Launch a pilot bi-weekly antenatal mobile clinic program at selected LGAs for pregnant women Partner with donors (e.g., MTN Foundation in Niger State) and NGOs (e.g., Riders for Health) to support with transporting doctors or drugs 1. Local Government Areas Deliverables Human capital Initiative Lead F.4.1: Permanent Secretary, Ministry of Health F.4.2: Permanent Secretary, Ministry of Health F.4.3: Permanent Secretary, Ministry of Health Recommended timeline Budget prioritization for counterparty funds (see budgeting section) Defined % budget to be reserved for counterparty funding and new personnel employment Published policy on rotation of new doctors, nurses, mid-wives etc. Clear incentive structure for personnel redeployment and rotation List of urban personnel willing to be redeployed outside their districts Prioritized LGAs¹, number of doctors, days of operation etc. . Next budget cycle Next budget cycle 3 months • 6 months 6 months 6 months • Estimated costs, and likely impact of program • 6 months Potential quick-win 205#207F.4 Health: Expand access to healthcare (II/II) Initiative objective • Ensure that health centers have adequate personnel Human capital Initiative Lead F.4.4: Permanent Secretary, Ministry of Health South Africa • Expand the reach of current health personnel Actions F.4.4 Leverage mobile SMS to expand access to health information Leverage online bulk SMS (e.g., BulkSMS.com, multitexter.com) to pilot distributing health-related SMS to a pre-defined customer base in a selected LGA2 e.g., Weekly antenatal text messages to pregnant women in a selected LGA2 with high MPR¹ Weekly health tips on child nutrition e.g., breastfeeding, to nursing mothers in a selected LGA2 with high MPR1 Partner with donors (e.g., World Bank's Nigeria States Health Investment Project in Nasarawa and Ondo States) to provide support Stakeholders Ministry of Health Plateau State Specialist Hospital Deliverables List of LGAs² with high MPR1 List of priority health topics and initial subscribers Cost estimate and likely impact of mobile SMS program in selected LGA2 Resources • Counterparty funding . Private hospitals • ICT Development Agency Recommended timeline ⚫ 3 months ⚫ 3 months 6 months Metrics 이어 นี่ do State government State government • Funding replacing health personnel • Funding mobile clinics program • Funding mHealth SMS program MTN Foundation, Riders For Health World Bank Increase in health personnel/100k popn ratio %population reporting good access to healthcare 1. Mobile Penetration Rate 2. Local Government Areas 3. Maternal and Child Healthcare Services 206 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#208นี่ 이어 do Copyright 2019 by Boston Consulting Group. All rights reserved. 【口 Ethiopia F.5 Health: Ensure quality of healthcare and service delivery (I/III) Initiative objective . Monitor the performance of health personnel - doctors, nurses, mid-wives etc. . Minimize inefficiencies in service provision (e.g., limitations of infrastructure) Actions F.5.1 Improve quality of health personnel . . Create a list of current GPs¹/CHOS³ at PHCs² Identify key indicators for tracking quality of GPs 1/CHOS³ (e.g., numbers of days at work, # of patients seen / day, patient diagnoses) Create and communicate a strategy for improving quality of GPS/CHOS³ in PHCs² (e.g., Kaduna Strategic Health Development Plan) GPS1/CHOS³ with no/falsified degrees, training for poor- performing GPs¹/CHOS³ Review qualifications i.e. educational degrees of GPs¹/CHOS³ and replace those with no/falsified/unrelated degrees e.g., environmental officers Engage the Zonal officers at Ministry of Health to identify technical facilitators within their department or appoint trustees from hospitals for each LGA² to monitor and report GPs1/CHOS³ quality Work with identified technical facilitators or trustees to conduct quarterly hospital inspections and surveys, identifying poor-performing GPS/CHOS³ and their skill gaps e.g., wound-dressing 1. General Practitioners 2. Primary Healthcare Centers 3. Community Health Officers Deliverables Human capital Initiative Lead F.5.1: Permanent Secretary, Ministry of Health List of GPs1/CHOS³ at PHCs² Indicators to track quality of GPs¹ /CHOS³ Published state health strategic plan List of health officers with no/falsified/unrelated degrees Detailed plan for each LGA³, identifying technical facilitators or trustees to conduct monitoring List of poor-performing GPs¹/CHOS³ by identified skill gaps Recommended timeline • 2 months • 1 month • 3 months 6 months • 3 months • Every quarter Potential quick-win 207#209이어 do นี่ F.5 Health: Ensure quality of healthcare and service delivery (II/III) Initiative objective . Monitor the performance of health personnel - doctors, nurses, mid-wives etc. . Minimize inefficiencies in service provision (e.g., limitations of infrastructure) Actions Develop a pilot system in excel, Google Docs etc., to report indicators-educational degree, absence from work etc., and work with ICT to determine feasibility of an app-based system or a mobile USSD SMS system for reporting (e.g., each patient gets an SMS or voice prompt to answer a short quality of service survey after each visit) Implement plan for regular data updates (e.g., daily text messaging, direct editing of Google Doc) with GPs', CHOS³ & hospital administrators Set up an incentive structure to reward high-performing GPs¹/CHOS³ e.g., increased yearly bonus, faster promotion, preferential treatment in rotation decisions, public service excellence awards Partner with donors (e.g., UNICEF, WHO, USAID) to retrain poor- performing GPs 1/CHOS³ at educational institutions Deliverables Human capital Initiative Lead F.5.1: Permanent Secretary, Ministry of Health System to report indicators related to GPs1/CHOS³ e.g., educational degrees, reports from monitoring exercise Reporting method and frequency List of high-performing GPs¹/CHOS³ and a clear incentive structure for rewarding them • Assessment of degree of training required and proposed list of educational institutions e.g., UNICEF training center Recommended timeline • 12 months 1 month • 6 months • 8 months 1. General Practitioners 2. Local Government Area 3. Community Health Officers Copyright 2019 by Boston Consulting Group. All rights reserved. Potential quick-win 208#210이어 do นี่ Ethiopia F.5 Health: Ensure quality of healthcare and service delivery (III/III) Initiative objective . Monitor the performance of health personnel - doctors, nurses, mid-wives etc. . Minimize inefficiencies in service provision (e.g., limitations of infrastructure) Actions F.5.2 Improve quality of service provision • • Engage infrastructure MDAs² to conduct yearly inspections at PHCs1, identifying immediate needs (e.g., boreholes at PHCs¹), and partner with donors (e.g., WHO) to prioritize and support Develop a long-term strategic action plan which reviews current infrastructure (e.g., hospital beds), service provision and insurance, and plan with donors (e.g., WHO) to phase and fund improvements Engage PHCs¹ to study supply, demand, and inventory of drugs, identifying drugs prone to stock-outs at North Axial Store and work with the state government to reserve funding at the beginning of the year to purchase these drugs directly from drug manufacturers during periods of stock-outs Stakeholders Ministry of Health Plateau State Specialist Hospital Primary Healthcare Centers Deliverables Initiative Lead Human capital F.5.2: Permanent Secretary, Ministry of Health • List of immediate needs per PHCs¹ especially those in rural areas Assessment of required funding . . • • Recommended timeline 3 months • 3 months • 6 months • 2 months 2-year strategic action plans for PHCs¹ Prioritization of action plans and required funding Historical supply and demand of drugs List of drugs prone to stock-outs Reserved funding for purchase of drugs prone to stock-outs 3 months Resources • Health personnel replacement fund - state government • Funding for training health personnel, quick and long term action plans . 3 months Next budget cycle Metrics % of PHCS¹ with general practitioners/community health officers present daily • ICT Development Agency 1. Primary Healthcare Centers 2. Ministries of Works, Transport, Energy and Water Resources GIZ, WHO Potential quick-win 209 Copyright 2019 by Boston Consulting Group. All rights reserved.#211Health Case studies 210#212Backup F.4.3 Human capital Health: Myanmar introduced mobile clinics to expand healthcare access to deprived rural communities Context Myanmar's rural population faces several issues inhibiting good health: • • Poor access: As at 2014, -80% of residents in rural areas like Madaya (250k popn², 2016) reported poor access to healthcare Poor sanitary practices: Buddhist novices in Yangon have intense dandruff, sores on their skin and other problems of lack of hygiene What did Myanmar do? Myanmar partnered with donors to fund pilot mobile clinic programs: Association For Healthcare Assistance, which ran monasteries with mobile clinics for Buddhist novices in Yangon: Health personnel included 5 doctors, 4 nurses and 65 volunteers 2 trips per month to selected monasteries (~70 trips in total) Healthcare services include treating wounds, dandruff, washing robes, cleaning beds and sterilizing monastery compounds Ooredoo, which introduced mobile clinics in Madaya: - Coverage to 110 villages and 80k people Health personnel included 8 doctors, 12 nurses, >30 volunteers etc. 2 trips per week to Madaya Services include ante- and postnatal care for pregnant women, treatment of illnesses such as hypertension, diabetes, malaria etc. Maternal and Child Healthcare Services 2. Population Source: Media coverage; BCG Analysis 1. || || || Key successes Myanmar Increased donor investments after success of pilot programs Shwe Parami Healthcare Foundation donated K300,000 monthly to Myanmar gov't after the success of the 1st 40 trips Reported significant improvement in access to healthcare ~5.5k children benefitted so far from mobile clinics -1.8k pregnant mothers have received maternal health care services -13k cases of illnesses treated Learnings for Plateau State Engage Ministry of Health to assess the feasibility of mobile clinics at rural areas with poor access to health facilities to offer vaccine, maternal and child healthcare services Partner with donors (e.g., Gates Foundation) to conduct community surveys, prioritizing MCHS¹ to offer and to provide support by buying vehicles or covering other operational costs 211 นี่ 이어 Copyright 2019 by Boston Consulting Group. All rights reserved.#213F.4.4 Backup Human capital Health: South Africa leveraged technology to improve access to maternal and child health care services นี่ do 이어 South Africa Context As at 2015, South Africa was faced with high child mortality (~155 deaths per 100k live births), resulting from poor MCHS1 Subsequent efforts to improve MCHS1 were hindered majorly by insufficient communication b/w patients and providers. As a result, South Africa leveraged its 100% mobile phone penetration rate to test mHealth programs, as a means of providing MCHS1 What did South Africa do? South Africa's NDOH³ initiated MomConnect, world's 1st mHealth intervention, aiming to register pregnant women into a national system to receive weekly preventative SMS, improving MCHS1 Several key elements to MomConnect made scale possible: • It is accessible through all mobile phones SMS received good ratings, fostering trust of service and health system Among -2k women, -98% found SMS helpful, 77% felt better prepared for delivery, 81% shared SMS with family etc. Successful PPP4 models driving funding and innovations • • It can be adapted over time through phone-based surveys and a help desk Allows 2-way interaction b/w pregnant mother and health system עעע || || || Key successes Extended access to ~95% of public health care facilities As at Aug. 2017, MomConnect had reached >1.7m pregnant women --63% attending 1st antenatal appointment High customer satisfaction from SMS Helpdesk h as processed >300k questions - ~600/day with a reply ~9.7k compliments vs. 1.3k complaints with 80% resolved Learnings for Plateau State Work with telcos e.g., MTN and Ministry of Health to assess technical feasibility of mHealth programs especially in rural areas Assess MPR across LGA5 esp. those with high mortality rates Identify other requisite infrastructure for mHealth success Partner with donors e.g., GIZ to conduct community surveys, prioritizing MCHS¹ to offer Build environment to incentivize PPPs in health infrastructure (e.g., IT systems) Work with ICT Development Agency to collect data on potential customer segments and price points for mHealth programs 1. Maternal and Child Health Care Services 2. Millennium Development Goals 3. National Department of Health 4. Public Private Partnership 5. Local Government Areas Source: Media coverage; Measure Evaluation; BCG 212 Copyright © 2019 by Boston Consulting Group. All rights reserved.#214Backup 이어 F.5.1 F.5.2 Health: Ethiopia developed a national system for hospital performance management to address poor service delivery Human capital นี่ Copyright 2019 by Boston Consulting Group. All rights reserved. Context With a population of over 109M, Ethiopia has a large, predominantly rural, and impoverished population with poor access to basic infrastructure As at 2010, -80% of gov't hospitals were understaffed, financially constrained and lacked reliable access to electricity and water, affecting overall service delivery What did the Ethiopian Government do? In 2009, Ethiopia partnered with Clinton Health Access Initiative and Yale Global Health Leadership Institute to develop hospital reform guidelines, including a performance monitoring system Performance monitoring system was rolled out in 2 phases: 1st phase (2010): Roll-out of minimum targets for key management 2nd phase (2011): Standardized set of KPIs for all hospitals System covered 11 aspects: hospital management, outpatient, emergency, inpatient, maternity, referral and pharmacy services, productivity, human resources, finance and patient experience Reform guidelines were consolidated in a document - NHPMIM¹, and disseminated to hospitals through a series of national workshops 1. National Hospital Performance Monitoring and Improvement Manual Source: WHO; Media Coverage; BCG Key successes By 2014, 84% of government hospitals were reporting their performance in all 11 aspects Ethiopia Between 2012 and 2013, mean adherence to operational standards increased from 68.2% to 74.5%, while the average # of successful deliveries increased by 30% (from ~12k to ~16k) Success of performance monitoring system is largely hinged to its simplicity, flexibility and transparency Learnings for Plateau State Partner with donors (e.g., WHO) and engage Ministry of Health to identify global best-in-class KPIs for hospital care services Work with the ICT Development Agency to develop a consolidated system for tracking KPIs and a training database for health personnel Work with the Ministry of Health and donor agencies (e.g., GIZ) to ensure that health personnel are trained on KPIs expectations Create a quality enforcement team to monitor hospital performance reporting and adherence of personnel to set operational standards 213#215Peace and Security 214#216Goal Improve coordination and funding for peacebuilding efforts across all peace- related organizations#2170 Kebbi Source: Acled database; BCG analysis 100 17 200 19 Jigawa Gombe Bauchi 300 Northern Nigeria: Number of violent incidents between 2016 and 2018 1,100 25 25 Katsina G Sokoto 25 37 Kano Peace and Security: Plateau recorded the 5th highest number of violent incidents amongst northern states in the past three years елему 40 40 43 63 Niger Yobe Zamfara 88 87 Kogi 88 89 Nasarawa 117 139 Taraba Adamawa 190 151 Plateau Kaduna Benue 208 276 359 1,048 Abuja оплод 216 Copyright © 2019 by Boston Consulting Group. All rights reserved. Peace and security#218Peace and security Peace and Security: These incidents mostly result from clashes between farmers and herdsmen -64% of incidents in Plateau between 2016 and 2018 fall under extreme violence to civilians... # of violent incidents (2016 - 2018) 6 25 (13%) (4%) ...with -70% of this incident-type resulting from clashes between farmers and herdsmen # of extreme violence to civilians incidents (2016 - 2018) Focus in next slide 3 3 (1%) (1%) 122 (64%) 37 (19%) 190 3 w- 17 (28%) 11 (5%) (10%) -45% of 85 (70%) violent incidents 122 Extreme violence Protests Battles and riots Strategic devlopments Total to civilians Farmers Unknown Communal & armed militia herdsmen group Military Kidnappers & police Sexual assaulters Total Incident types Involved persons Source: Acled database; BCG analysis 217 Copyright 2019 by Boston Consulting Group. All rights reserved.#219Peace and security Peace and Security: -80% of clashes between farmers and herdsmen occur along the border with Kaduna # of farmers & herdsmen clashes (2016 - 2018) 40 30 20 20 40 40 (34%) (34%) 10 13 (12%) 9 (7%) 5 4 5 0 (6%). (4%) (9%). Barkin Ladi Bassa Riyom Jos South Bokkos Jos North Others¹ Estimated 2018 ppn 242 153 232 857 111 2.1k 160 density (-ppl/km²) Closest state 1. Mangu (3), Kanam (1) and Kanke (1) 2. Local Government Areas Kaduna Bauchi, Nasarawa, Taraba Source: Acled database; Plateau State Road Map to Peace PPBA Strategic Action Plan (2018-2022); Plateau State Government webpage; Press Research; BCG analysis 218 Copyright 2019 by Boston Consulting Group. All rights reserved.#220Peace and security Peace and Security: Peace building efforts are hampered by several issues which minimize effectiveness 醑 Lack of coordinated approach to mitigation • Lack of a consolidated framework for all stakeholders (e.g., community leaders, PPBA¹) to align interests limits information sharing amongst them Lack of coordination between PPBA¹ and Ministry of Finance slows down release of budgetary and counterparty funds Insufficient funding to support peace efforts • Inability to recruit staff and expand coverage in priority areas due to inadequate funding Little incentive to attract out-of-state mediators or encourage community leaders to participate 1. Plateau State Peace Building Agency Source: Stakeholder interviews 219 Copyright © 2019 by Boston Consulting Group. All rights reserved.#221How does Plateau address its peace and security issues?#222⚫-Benchmark-• •- Objective- G Three initiatives to improve peace and security G.1 G.2 G.3 Peace and security Improve coordination among stakeholders Create a multi-stakeholder plan of action to address violence and restore peace Ensure security of key transit routes and economic centers Support Plateau's broader strategy for economic development Improve mediation efforts in conflict-prone areas Ensure durability of peace post-conflict in mostly affected areas Liberia 221 Copyright 2019 by Boston Consulting Group. All rights reserved.#223G.1 Peace and security Coordination among federal, state, and local stakeholders is critical to implement initiatives and achieve success Implementation of sector policy and strategy cri 199 Military Alignment on priorities State security agencies Information sharing and communication plan Mediation plan Peace Building Agency Community leaders and youths 222 Copyright 2019 by Boston Consulting Group. All rights reserved.#224G.2 G.3 Peace and security Negative press and the distribution of violent incidents along key economic centers suggest a need for targeted peace interventions Distribution of violent incidents in Plateau, 2016 - 2018 Negative press dissuades investment AFRICA Nigeria: Violence in Plateau State highlights failures of the federal system Bassa KADUNA Jos North Jos East BAUCHI Jos South Barkin Ladi Riyom Mangu Bokkos Pankshin Kanam Kanke Legend (# of incidents) >20 16 - 20 11-15 6-10 In re Nigeria: Dozens more killed as Fulani herdsmen violence continues in Plateau state September 14, 2018 By World Watch Monitor Nigeria Fulani herdsmen, Muhammadu Buhari, Nigeria, Plateau Share f G Infant, Nine Others Killed In Plateau Violence Ten persons were confirmed killed by gunmen that invaded rural settlements in Daffo District of Bokkos Local Government, Plateau State, on Friday NEWS / AFRICA Nigeria: Communal violence leaves 86 dead in Plateau State Attacks by herdsmen on six villages in central Nigeria's Plateau state kill at least 86 people, local media report. Langtang North Wase 1-5 25 Jun 2018 f Mikang 0 NASARAWA Qua’an Pan Shendam Langtang South TARABA Agro-hub Key mining center¹ Potential tourist center² 1. Areas producing tin and columbite 2. Major wildlife, rock formation and water fall areas Source: Media Coverage; Acled data NIGERIA JOS ABUJA PLATEAU 223 Copyright 2019 by Boston Consulting Group. All rights reserved.#225Peace and security Detailed initiatives 224#226G.1 Peace and Security: Improve coordination among stakeholders (I/II) Initiative objective • Create a multi-stakeholder plan of action to address violence and restore peace Peace and security Initiative Lead G.1.1: Office of Secretary to the State government Actions G.1.1 Clarify and align on roles and responsibilities of stakeholders . • Identify stakeholders currently working on peace building and conflict resolution (e.g., PPBA¹, military, Operation Rainbow, community leaders) Request State Governor discuss with federal security agencies how they can improve coordination of their activities with state security agencies (e.g., joint operations centers, joint exercises) Convene state stakeholders annually to align on the following: Peace objectives of Plateau State (e.g., reduction in number of incidents along the border of Kaduna) Priority areas to allocate budget Their interests in peace building and conflict-resolution (e.g., preventive or reactive measures to conflict) Roles and responsibilities of stakeholders (e.g., PPBA¹ as lead for mediation & Operation Rainbow as lead for conflict resolution) Issues faced in current peace building and conflict resolution efforts and recommended solutions Develop public service excellence awards to acknowledge best-in-class coordination among state stakeholders and a successful achievement of the peace objectives 1. Plateau State Peace Building Agency Source: Media Coverage Deliverables List of stakeholders involved in peace building and conflict resolution Recommended timeline 1 month Coordination plan between federal and state security agencies • 6 months Detailed peace objectives of Plateau State 3 months Locations to concentrate peace efforts 3 months Stakeholder's interests in peace-building and conflict resolution 3 months 3 months 3 months • 6 months Clear roles and responsibilities of each stakeholder List of issues and recommendations for peace building and conflict resolution List of public service excellence awards to incentivize coordination among stakeholders Potential quick-win 225 Copyright 2019 by Boston Consulting Group. All rights reserved.#227G.1 Peace and Security: Improve coordination among stakeholders (II/II) Initiative objective • Create a multi-stakeholder plan of action to address violence and restore peace Peace and security Initiative Lead G.1.2: Office of Secretary to the State government Actions G.1.2 Improve information sharing among stakeholders Setup a joint operation center for Operation Rainbow, PPBA1, Civil Defense Force, police and military representatives to share information and define tactics during conflict break-outs e.g., Enugu State setup a joint operation center for all security agencies in the 2015 elections to share information and define approach to post-election conflicts Organize yearly joint training programs for state security agencies and invite Kaduna and military representatives, to share best practices in federal and state conflict operations e.g., the Armed Forces Command and Staff College in Kaduna conducts inter-agency trainings on information sharing and intelligence gathering for security personnel on a yearly basis Stakeholders • Office of Secretary to the State Government Deliverables Joint operation centers for security agencies to convene during conflict- break outs Joint training exercise for sharing information and best practices Resources TBD • Plateau State Peace Building Agency • Police, Military, Civil Defense • Community leaders Operation Rainbow • • Kaduna State Government Source: Media Coverage Recommended timeline 6-9 months 3-6 months Metrics Number of stakeholders participating in yearly alignment meetings Number of relevant agencies represented at operations centers and training programs Potential quick-win 226 Copyright © 2019 by Boston Consulting Group. All rights reserved.#228G.2 Peace and security Peace and Security: Ensure security of key transit routes and economic centers (I/II) Initiative objective . Support Plateau's broader strategy for economic development Initiative Lead G.2.1: Office of Secretary to the State government Actions G.2.1 Improve security on key transit routes and potential economic centers Identify critical transit routes and potential economic centers e.g., Critical transit routes: roads leading from potential agro-hubs to off-taker markets in Abuja and Kaduna, food processing and mining areas, area around the airport, etc. Potential tourist attractions: roads leading to Riyom mountain, Jos Wild life Park etc. Designated industrial areas in Jos and near agro-hubs Concentrate security presence along critical transit routes, food processing centers and associated living areas, potential tourist centers etc. Critical transit routes: Engage state security agencies (e.g., police, military, civil defense) to provide adequate security on in-state transit routes, and neighboring states to ensure security along out- of-state routes to off-taker markets in Abuja and Kaduna Food-processing centers: Engage state security agencies (e.g., police, military, civil defense) to provide adequate security at food-processing centers and associated living areas by partnering with food-processing companies to provide funding Deliverables List of critical transit routes and potential economic centers from Ministry of Agric, Ministry of Commerce, Ministry of Tourism, etc. Detailed plan for re-assigning or increasing rotations and patrols in designated areas Recommended timeline 1 month • 1 month Potential quick-win 227 Copyright 2019 by Boston Consulting Group. All rights reserved.#229G.2 Peace and security Peace and Security: Ensure security of key transit routes and economic centres (11/11) Initiative objective Initiative Lead . Support Plateau's broader strategy for economic development G.2.1: Office of Secretary to the State government Actions Deliverables Recommended timeline • Deploy peace mediators to conflict-prone areas close to identified transit routes and potential tourist centers by collaborating with PPBA1 Detailed plan with PPBA¹ to deploy peace mediators ⚫ 3 months Stakeholders • • Office of Secretary to the State Government Plateau State Peace Building Agency Security agencies: Operation Rainbow, Police, Military, Civil Defense 1. Plateau State Peace Building Agency Resources Metrics • Decrease in number of violent incidents in economic centres and along transit routes Increase in number of patrols in critical areas Potential quick-win 228 Copyright 2019 by Boston Consulting Group. All rights reserved.#230G.3 Peace and security Peace and Security: Improve mediation efforts along conflict-prone areas (I/III) Initiative objective . Ensure durability of peace post-conflict in mostly affected areas Initiative Lead G.3.1: Office of Secretary to the State government Liberia Actions G.3.1 Improve mediator quality and success Reinforce capabilities of PPBA³ as the primary agency for peace building and mediation activities by training its unskilled staff via institutions such as National Peace Academy Create a rotational mediation training program for Operation Rainbow, community leaders and volunteers through collaborations with PPBA³ i.e., skilled members of PPBA³ rotate across LGAs¹ providing training, and thus improving mediation coverage Fund all training programs by partnering with donors (e.g., UN² Peace and Development Fund, GIZ's Civil Peace Service) e.g., During its civil war, Liberia partnered with UN² to train ~300 men and women in peace mediation efforts, who are reported to have resolved -300 conflict situations in their communities Lobby mediators that have successfully reduced violence to Plateau by creating incentives to attract them e.g., free housing, exemption from income taxes Deliverables Detailed plan on how to identify and train unskilled staff of PPBA¹ Detailed PPBA³'s rotation plan for training across the LGAs¹ Recommended timeline 3 months • 3 months Estimated costs and likely impact of training programs on mediation success 3 months Detailed incentive structure for out-of- state mediators 3 months 1. Local Government Areas 2. United Nations 3. Plateau State Peace Building Agency Source: Media Coverage Potential quick-win 229 Copyright 2019 by Boston Consulting Group. All rights reserved.#231G.3 Peace and security Peace and Security: Improve mediation efforts along conflict-prone areas (II/III) Initiative objective Initiative Lead . Ensure durability of peace post-conflict in mostly affected areas Actions G.3.2 Prioritize and support peace mediation efforts Liberia Deliverables G.3.2: Office of Secretary to the State government Recommended timeline to mediation in Barkin Ladi, Bassa, Riyom etc. Identify best means of mediation (e.g., court-based, faith-based) in Reports from PPBA³ with best approach Barkin-Ladi, Bassa, Riyom etc., by actively participating in association meetings (e.g., Peace Architectural Dialogue, Community Security Architectural Dialogue, Inter-faith Council meetings) through the PPBA³ Fund peace mediation activities (e.g., providing vehicles for transport, aid materials such as food, clothing) in conflict-prone areas by partnering with donors (e.g., USAID's ECPN1, UN² Peace and Development Fund, African Union's Peace Fund) e.g., Benue and Nasarawa partnered with USAID'S ECPN1 since 2015 to promote peace among ethnic groups in their rural communities Ensure consistent and timely provision of counterparty funds for donor support by collaborating with the Ministry of Finance Estimated costs and likely impact of mediation activities in rural community 3 months 6 months Timely provision of counterparty funds Next budget cycle 1. Engaging Communities for Peace in Nigeria 2. United Nations 3. Plateau State Peace Building Agency Source: Media Coverage Potential quick-win 230 -0000- Copyright 2019 by Boston Consulting Group. All rights reserved.#232G.3 Peace and security Peace and Security: Improve mediation efforts along conflict-prone areas (III/III) Initiative objective . Ensure durability of peace post-conflict in mostly affected areas Initiative Lead G.3.3: Office of Secretary to the State government Actions G.3.3 Create a "State Peace Fund", funded by contributions from donors to directly support peace activities, and separate from funds at Ministry of Finance, learning from Edo State success e.g., in 2007, the Government of Nepal established the NPTF¹ as a mechanism for interested donors (e.g., United Nations) to contribute to the peace process through direct contributions to the Government Stakeholders Office of Secretary to the State Government Plateau State Peace Building Agency Community leaders • • Operation Rainbow Deliverables Likely impact of "State Peace Fund" on donor contributions to peace activities Path to set up fund (e.g., legal actions, finance options) Resources Fund mediation training programs United Nations, GIZ Fund peace mediation activities (purchase of vehicles, provision of aid materials) USAID, United Nations, African Union Recommended timeline 6 months Metrics • Increase in number of trained mediators Increase in number of mediation success stories Increase in donor funds for peace activities 1. Nepal Peace Trust Fund Potential quick-win 231 -0000- Copyright 2019 by Boston Consulting Group. All rights reserved.#233Peace and security Case studies 232#234Backup G.3.1 G.3.2 Peace and security Peace and Security: Liberia was able to maintain peace post-war by partnering with donors on peace mediation activities Liberia Context During Liberia's 14-year civil war, young men & women had the highest % of recruited fighters. The war destroyed +80% of schools, leaving many youths without adequate education or the skills to earn a livelihood. As such, Liberia needed a strategy to ensure peaceful co-existence among its youths What did Liberia and UNICEF do? Liberia partnered with UNICEF to launch NYSP1, enrolling youth in centers of peacebuilding, reconciliation & dev't efforts. This entailed the following: • Training of 300 young men and women, including volunteers deployed under the program in 12 of Liberia's 15 counties So far, trainees have resolved >300 conflicts in their communities Free accommodation for graduates of tertiary institutions who enlist for the NYSP1 in other counties To support this program, UNICEF contributed a total sum of $1.5M between 2013 and 2015 • Key successes Sustained peace and security post-war NYSP1 successfully integrated the 300 young men and women into the job market mainly to work in hospitals, clinics, agricultural projects and youth centers as peace mediators Reduced youth potential for violence by offering incentives for youth to enlist into NYSP1 Learnings for Plateau State Fund mediation trainings and activities by seeking active donor partnerships Partnership between the Liberia government and UNICEF was necessary in funding peace mediation initiatives Expand mediation trainings to volunteers especially youths and provide incentives for youths to enlist 1. National Youth Service Program Sources: Media coverage; BCG analysis 233 Copyright 2019 by Boston Consulting Group. All rights reserved.#235G.3.3 Backup Peace and Security: The AU Peace fund serves as a mechanism for member states to support each other in peace building and conflict resolution Peace and security Description The Peace Fund was established in 1993 as the principal financing instrument for peace & security activities of the Organization for African Unity and was launched on November 17th Nov. 2018 at Addis Ababa It is one of the five pillars of APSA¹ and is structured by the AU Assembly around three thematic windows: • • Mediation and Preventive Diplomacy Operations The Peace fund is one of "Peace and Security Department" financing solutions The department provides financing in member states for the following: Conflict prevention and early warning Crisis management and post-conflict reconstruction Defence and security Peace support operations Institutional Capacity Peace Support Operations How is the Peace Fund funded? The Peace Fund is historically funded by donations from AU member nations In July 2016, the AU Assembly endowed the Peace Fund with $400m in member states' contributions to be drawn from the 0.2% levy instituted to finance the overall African Union budget. The Fund is expected to reach full endowment by 2021. More recently, the Fund, in 2017, received its highest levels of member states' contributions --$56m since its establishment in 1993. Successes Coordinated and promoted several peace and security programmes in Africa, including the Regional Economic Communities for conflict prevention, management and resolution, the United Nations and other international organisations Operationalized the Continental Peace & Security Architecture, reported to have prevented & resolved >150 conflicts in member states 1. African Peace and Security Architecture Sources: Media coverage; BCG analysis 234 Copyright 2019 by Boston Consulting Group. All rights reserved.#236Governance and Finance 235#237Goal Reform management, coordination, and data practices across MDAs#238Three key pain points identified around governance and fiscal responsibility need to addressed Cross-MDA collaboration Data collection, sharing & reporting Budgeting & financial planning 237 Copyright 2019 by Boston Consulting Group. All rights reserved.#239Agriculture Collaboration Land registration & urban development Transportation Several agencies have similar mandates, potentially leading to duplication of efforts Mechanization FADAMA, ASTC, Ministry of Agriculture Seed & fertilizer access Ministry of Agriculture, FADAMA, PADP, ASTC Irrigation & water supply Ministry of Agriculture, FADAMA Farmer training • FADAMA, PADP, ASTC Rural access roads Ministry of Agriculture, Ministry of Transport, FADAMA, RAAMP Land registration payment Ministry of Lands, Survey & Town Planning, JMDB Infrastructure development (e.g. street light installation) Ministry of Works, JMDB Tax revenue collection Ministry of Transport, Board of Internal Revenue 238 Copyright © 2019 by Boston Consulting Group. All rights reserved.#240Collaboration Additionally, lack of cross-MDA communication results in uncoordinated plans, reduced revenue generation, and unnecessary difficulty for investors Current challenges with this model • • Lack of data-sharing: highly siloed operations, leading to duplicated efforts Multiple interfaces for revenue collection increases chances of revenue leakage/non-reporting Investors face difficulties through engaging with multiple MDAs to perform singular tasks (e.g. land registration) Why is cross-MDA collaboration important? • Need to increase aggregation & data-driven decision making (e.g. investment priorities for each sector Need to eliminate program overlaps in order to efficiently allocate state funds Develop overarching strategies for each sector by coordinating implementation plans across MDAs to maximize synergies Impact of improved collaboration Set overall sector targets and get buy-in from relevant MDAs to achieve these goals Maximize expected outcomes through synergy realization and increased coverage area Use increased data quality & streamlined processes to attract more donor funding & investment 239 Copyright 2019 by Boston Consulting Group. All rights reserved.#241Data gaps ↑ Data quality Poor data practices impact state's ability to attract donor & investor funding, prioritize disbursement and gain high-level sector insights Attract & coordinate investments Prioritize spend & evaluate disbursement Leverage data-sharing to develop aggregated views Lack of comprehensive data. to justify grant needs & report baseline metrics to potential donors Insufficient data on key sectors to create business case for interested investors (e.g. size of mineral deposits) Impartial data on how much MDAs generate Impartial data on how disbursements are spent on a quarterly basis Different MDAs working in silo means collected data is rarely aggregated to drive wide- scale impact & coordinate efforts (e.g. in agriculture) 240 Copyright 2019 by Boston Consulting Group. All rights reserved.#242High budgeting variance results in disbursement unpredictability due to unforeseen expenses and unprioritized spending Budgeting process 2018 Budgeted vs Actual Revenue 146 19 9 (Bn NGN) 2018 Budgeted vs Actual Expenditure 146 (Bn NGN) 27 110 106 1-1 38 13 49 11 13 12 61 21 25 10 11 71 46 21 38 12 Budget Actual Budget Actual Other Revenue Aid & Grant Local Loans & Overdraft Tax Revenue Paris Club (Federal Refund) Statutory Revenue (FAAC) VAT ☐Expenses not in proposed budget¹ Personnel Emoluments (MDAs) Overhead Cost (MDAs) Capital Expenditure 1. Includes LGA allocation, loan repayments, FAAC deductions, personnel emoluments (Boards & Parastatals), grants 2. Source: Plateau State Financials Impact of high budget disparity: . Inability to schedule disbursements with regularity due to high incidence of unforeseen expenses • Too many approved programs put strain on any unexpected revenue made available (e.g. 15 Bn excess Paris Club refund) - lack of prioritization 241 Copyright © 2019 by Boston Consulting Group. All rights reserved.#243Budgeting process Several factors drive expenditure uncertainty, which drives high variability between expected vs actual budget Lack of spend prioritization Lack of prioritization across programs Lump sum spend profiles submitted by programs, which don't account for project phases e.g. requesting for 2 Bn to spend over 4 years as lump sum in Y1 2 Lack of monitoring & evaluating framework Lack of transparency into how disbursed funds are spent, which should to serve as basis for subsequent year's budget 3 No revenue-based budget justification Lack of accountability for MDAs to accurately report revenues received (-50% unreported). This should information should inform budget allocation 242 Copyright 2019 by Boston Consulting Group. All rights reserved.#244How does Plateau improve governance and financial management?#245⚫-Benchmark-⚫ Objectives- H Four initiatives to improve governance and finance H.1 H.2 H.3 H.4 ㅁㅁㅁ Reform budget management process Define budget preparation, prioritization, execution and monitoring and evaluation approach and ensure that relevant MDA staff are well trained on approach, in order to reduce budgeting variances Execute spend effectively and accurately Improve spend discipline by improving effectiveness and efficiency in allocating and disbursing funds to priority projects/expenditure in line with budget execution plan Reorganize MDAs & improve collaboration & accountability Revise MDA structure to reduce role duplication by merging teams with overlapping mandates and set up governance principles and scope establishing expectations of MDA responsibilities Improve transparency and data sharing Improve data quality and sharing by standardizing data collection templates and using online platforms to improve transparency on data, key state laws & regulations Malaysia Uganda Kenya 244 Copyright © 2019 by Boston Consulting Group. All rights reserved.#246H.1 Plateau should reengineer its budgeting process in line with best practices... Lull Strategic planning Understand government strategy Example structure Plateau can follow Illustrative Reporting and Capital planning and budgeting Annual planning and budgeting performance management FP&A Management Capital planning preparation Annual planning preparation Define reporting requirements and KPIs Policies, procedures and controls Develop strategic plan Develop capital plan Establish MDA targets Develop detailed annual plan Standardize reporting templates Generate standard reports and analyze performance Data management and governance 245 Copyright 2019 by Boston Consulting Group. All rights reserved.#247H.1 ...and ensure the budget is accurately and effectively prioritized in line with strategic goals Expenses Priority expenses Example prioritization criteria ◆ Strategic fit Short-term vs long-term < Risk < Costs Examples of top priority budget items Counterparty funding e.g.: For agro-hub development For mediation efforts (security) Revenue collection efforts • Fertilizer subsidies Operating expenditure for teacher salaries to fund both existing and new hires through the period 246 Copyright 2019 by Boston Consulting Group. All rights reserved.#248H.2 Spend discipline should be enforced through performance agreements, which MDAs will be measured against Setup performance agreements Agreements set up with each MDA to decide on list of targets for the year Track expenditure progress quarterly Proof of budget execution Q1 Q2 Q3 Q4 Performance Contract Note: Feroar saw wit seed on arvess hair for asthan we have assed to perform you have requested arist for your weighted keys and at least one pedal. We need a performing location which protects car instruavents bere being bumped if you averted that we piformaatoos, we will need a covere geboten to protect our streets and music he wind, rais and direction Event #2 Address: Telephone Number Other address on the event of an Telephone Number: Start Te Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Budget Actual Oct. Nov. Dec. End of year evaluation against priorities and targets Execution of performance agreements Verify expenditures Verify priorities and contractual obligation met 247 Copyright © 2019 by Boston Consulting Group. All rights reserved.#249H.3 H.4 MDAs should be reorganized and encouraged to collaborate with clear reporting line Example: Agriculture sector Current MDAs overlap in mandates with unclear reporting accountabilities Reorganization and reduction streamlines roles Ministry of Agriculture Irrigation and water supply Seed and fertilizer Farming access mechaniza -tion PADP FADAMA Farmer training Note: SGS: Secretary of the Government of the State FADAMA Office of SGS1 Oversight of all operations Ministry of Agriculture Seed and fertilizer access Farming mechanization Irrigation and water supply PADP Farmer training All share data with Bureau of Statistics $#250Governance Detailed initiatives 249#251H.1 Reform budget management process (I/II) Initiative objective Define budget preparation, prioritization and monitoring and evaluation approach Improve the process of prioritizing funding decisions in line with strategic priorities Reduce budgeting variances Actions Malaysia H.1.1 Reengineer the end to end budgeting process, from planning and budgeting to monitoring and evaluation: • Identify key pain points and solutions along the process, leveraging best practice examples (See best practice process slide) Set up a clear timeline, containing all key meetings, roles and responsibilities and deadlines during budget preparation Ensure MB&EP meets with governor to align on priorities and cascades information down to other MDAs before budget preparation Ensure enforcement of a budget limit based on prior year actual spend (not budget). i.e. MDAs require justification for budget request greater than prior year's expenditures Work with Office of the Governor and State assembly to ensure approvals are within budget limit set Standardize the submission of budgets (e.g., Sharepoint/excel templates) Ensure MB&EP trains staff in other MDAs on proper budget procedure H.1.2 Improve the Budget prioritization process: • • Identify criteria to prioritize OpEx and CapEx e.g., Only CapEx over 50m Naira needs to go to MB&EP for prioritization. E.g., Quick wins vs. Priority Sector vs. Total cost etc. Prioritize counterparty funding needed for projects in priority sectors (e.g., see Education and Health care initiatives) based on criteria above Draw up a list of priority expenditures that can't be delayed (e.g., fertilizer subsidies, road construction etc.) Prioritize funding for strategic priorities. e.g., Agro-hubs, infrastructure near agro-hubs, key mining site, support co-ops etc. Deliverables Initiative Lead Ministry of Budget and Economic Planning (MB&EP) Budget process reengineered Detailed calendar with roles and responsibilities and key meeting dates Signed budget based on previous years' expenditures Standardised mode of budget submission implemented Criteria defined and implemented in all MDAS List of counterparty funding in order of priority List of priority expenses Recommended timeline 12 months 3 months 6 months • 6 months • 3 months 2 months • 4 months 250 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#252Kenya H.1 Reform budget management process (II/II) Initiative objective Define budget preparation, prioritization and monitoring and evaluation approach Improve the process of prioritizing funding decisions in line with strategic priorities Reduce budgeting variances Actions Work with Ministry of Finance to define funding timeline and schedule for disbursements to improve spend discipline, realize quick wins and kick-off larger initiatives Develop checklist to align and evaluate spending choices against priorities before approval H.1.3 Monitor and evaluate budget realization for proper prioritization and utilization: Define guidelines for creating and monitoring performance agreements (also see initiative 2.1) Define format of budget reports, individuals responsible for creating reports and frequency of reporting to actively plan, manage and monitor budget execution and manage variances with disbursement plan Standardize MDA reporting template (Performance matrix, timelines, expenditure profiles, agency coordination completed, expected outcomes etc.) by ensuring adoption across MDAs Define plan for timely interventions and who's responsible Stakeholders Ministry of Finance • Efficiency Unit • Bureau for Public Procurement Ministry of Budget and Economic Planning • All other MDAS Deliverables Initiative Lead Ministry of Budget and Economic Planning (MB&EP) Recommended timeline • Funding timelines defined in all MDAs • 4 months Checklist to validate spend decisions before approval 3 months Format of reports, roles and responsibilities, frequency of reporting defined Adoption of reporting template by MDAs Mode of intervention when issues are identified defined Resources ICT to support in developing templates 3 months • 12 months 2 months Metrics • • % variance of budget over previous year's expenditures % of MDAS adopting new approach Number of evaluation/alignment meetings held Potential quick-win 251 Copyright 2019 by Boston Consulting Group. All rights reserved.#253H.2 Execute spend effectively and accurately (I/II) Initiative objective Improve spend discipline: improve efficiency in allocating and disbursing funds to priority projects/expenditure in line with budget execution plan Initiative Lead Ministry of Finance Office of the Governor Uganda Actions H.2.1 Improve spend discipline and execution of budget in accordance with plan: Introduce performance agreement that will be signed between MDAs and Office of the Governor declaring target performance obligations Ensure MDAs execute spend based on priorities and targets • Ensure MDAs create profiles of inflow and expenditures to ensure estimates and schedules are realistic and are being adhered to Ensure OpEx is distributed automatically at the beginning of each quarter e.g. for fuel, paper, and basic necessities Ensure MDAs align with ministry on outputs every quarter based on performance agreement (detail out who will attend meeting, documents to be prepared for meeting etc.) Allow for trade offs between funding of lower priority projects of one MDA to higher priority projects of another MDA based on criteria in initiative 1.2 Implement policy of giving penalties for not following execution plan and meeting targets in agreement, e.g. delay release of follow-on funds Create buffer fund to take over to the following year Create yearly event where MDAs showcase & are recognised for achievements Deliverables Recommended timeline • Procedure to ensure effective budget execution defined and implemented Performance agreements developed for MDAs 12 months 12 months • Inflow and expenditure profiles 12 months Format of quarterly meetings and individuals to attend defined 4 months 252 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#254H.2 Execute spend effectively and accurately (II/II) Initiative objective Improve spend discipline: improve efficiency in allocating and disbursing funds to priority projects/expenditure in line with budget execution plan Stakeholders • • Ministry of Finance Efficiency Unit Bureau for Public Procurement Ministry of Budget and Economic Planning (MB&EP) All other MDAS Resources • N/A Initiative Lead Ministry of Finance Office of the Governor • Metrics % variance between actual vs planned (prioritized) budget execution No. of performance contract signed by MDAs Time from request to fund release 253 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#255H.3 Reorganize MDAs and improve collaboration and accountability (I/II) Initiative objective Revise MDA structure to reduce role duplication by merging teams with overlapping mandates Set up governance principles and scope, and establish expectations of MDA responsibilities Actions H.3.1 Restructure MDAs to efficiently deliver on mandates and eliminate any • replication of efforts: Gather full list of current MDAs and reporting structures Review the mandates of each MDA and identify overlaps Delineate the roles and responsibilities of MDAs into specific mandates (e.g., Role of Efficiency unit vs. Procurement, FADAMA vs. PADP etc.) Merge MDAs with overlapping mandates and clearly draw responsibilities and expected reporting lines Ensure adequate oversight on activities of MDAs to ensure activities are executed effectively, e.g., Ministries have budget approval oversight of agencies Train MDA staff on executing new responsibilities (budget preparation, budget monitoring and evaluation etc.) H.3.2 Develop overarching strategies for each sector by coordinating • • implementation plans across MDAs to maximize synergies: Ensure communication & data sharing between MDAs (see initiative 4.1 & 4.3) Clearly define structure, frequency of (quarterly) inter-MDAs meetings led by the State Economic council to: Ensure cross sector alignment on priorities and targets (see agriculture, mining, tourism and infrastructure initiatives) Discuss areas of potential collaboration Report progress made on key initiatives Deliverables Initiative Lead Office of the Governor Revised list of MDAs, roles, responsibilities, and reporting requirements Staff trained to execute responsibilities Frequency of alignment meetings and individuals to attend defined Recommended timeline 15 months 12 months 4 months 254 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#256H.3 Reorganize MDAs and improve collaboration and accountability (II/II) Initiative objective Revise MDA structure to reduce role duplication by merging teams with overlapping mandates Set up governance principles and scope, and establish expectations of MDA responsibilities Initiative Lead Office of the Governor Actions H.3.3 Ensure transparency in executing budget and managing contracts: • Price intelligence unit, MB&EP, BPP (Efficiency unit) and Min. of finance (Cash liquidity management committee), similar to system in Kaduna, should be in charge of reviewing the progress on performance agreements, budget execution, reprioritization of expenditure and reporting its findings and recommendations to the Office of the Governor Ensure price intelligence unit publishes price list on state website H.3.4 Consolidate donor management: • . • • Create a donor strategy to manage and prioritize information and requests Ministry of Budget and Planning, Bureau of Statistics and Special assistant to Governor should work together and be responsible for: Consolidating all requests from MDAs for donor support/funding Liaising with MDAs and donors and prioritizing requests (based on prioritization criteria in initiative 1.2) Identifying donor needs and expectations for government data and funding commitments Working with Bureau of statistics & other MDAs to collect necessary data Stakeholders • Ministry of Finance Efficiency Unit Bureau for Public Procurement (BPP) Ministry of Budget and Economic Planning (MB&EP) • Bureau of Statistics Deliverables • MDA responsible for reporting on budget execution identified Recommended timeline 3 months Donor funding management strategy developed 9 months Resources Metrics • N.A. • No. of MDAs restructured • No. of staff trained of budget process Potential quick-win 255 Copyright 2019 by Boston Consulting Group. All rights reserved.#257H.4 Improve transparency and data sharing (I/II) Initiative objective Improve data quality and sharing by standardizing data collection templates and using online platforms to improve transparency on data, key state laws & regulations Initiative Lead Office of the Governor Actions H.4.1 Increase data-sharing & aggregation by coordinating agencies: • Drive the implementation of e-governance and open data initiatives Identify and roll out existing tools that MDAs can use to share data easily (e.g. SharePoint, Google docs) Ministry of Budget and Economic planning and ICT development agency should train DPRS staff on methods to collect and record data Publish contact list of DPRS staff to obtain data from in each MDA online Convene data reps from MDAs on a regular basis (monthly, quarterly) to share data, enforced by governor if required Implement policy to copy Bureau of Statistics on all data requests and responses, and report to the Governor on any unmet request Identify a list of ways to incentivize data collection and sharing between MDAS (e.g. linking fund disbursements to consistency of data sharing) Ensure MDAs have adequate computers and staff are trained to report data H.4.2 Improve data quality by prioritizing data to be collated and monitored: Develop prioritised list of -10 -12 metrics that are most critical for MDAs and the Governor's office to track Mandate MDAs to identify top 10-12 data sets and metrics most critical to complete and track, based on donor priorities and economic growth plan (e.g., hospital locations, crop dispersion) Strengthen the audit board to sanction MDAs who share inaccurate data. e.g. reduction in budget of MDA Deliverables Tool to share data identified and rolled out across MDAs Web page with names of key contacts for data Data sharing rule put into force and communicated to MDAS List of incentives to encourage sharing of data between MDAs List of most important data points to be collated by MDAs Audit board empowered to implement sanctions Recommended timeline • 12 months • 6 months 3 months • 3 months 6 months 6 months 256 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#258H.4 Improve transparency and data sharing (II/II) Initiative objective Improve data quality and sharing by standardizing data collection templates and using online platforms to improve transparency on data, key state laws & regulations Initiative Lead Office of the Governor Actions Move to electronic gazetting to improve transparency and make laws more accessible to investors Partner with Open law library who have offered to assist Plateau state to publish its laws online Stakeholders • Ministry of Finance • . • Efficiency Unit • Bureau for Public Procurement Ministry of Budget and Economic Planning Bureau of Statistics Plateau State ICT Development Agency All other MDAS • . Deliverables • Laws published online Resources • Ministry of Finance • Efficiency Unit Bureau for Public Procurement Ministry of Budget and Economic Planning Bureau of Statistics Plateau State ICT Development Agency All other MDAS Recommended timeline • 6 months Metrics • Number of MDAS adopting use of new template and data sharing tool Number of data exchanges between MDAS 257 Potential quick-win Copyright 2019 by Boston Consulting Group. All rights reserved.#259Governance Case studies 258#260Malaysia's government moved away from incremental budget approach to zero- based budgeting approach to improve spending efficiency Malaysia Context BERSEKUTU BERTAMBAH MUTU Previous years budget always used as baseline for new budget Set revenue allocation for projects exist every yr. without a needs assessment, resulting in Wasteful expenditure Increased spend every year Built in inflation mechanism that's not justified What did Malaysia do? Moved away from copy paste budget model towards zero based budgeting · Expenditures determined from zero each year vs. using last years numbers as baseline Removes assumption that project spend simply increases by inflation and any other cost each year Forces stakeholders to think from fresh about spend for each project, break it down & remove wastage Stakeholders have to justify each need based on objectives vs just looking at previous budget All tenders are reviewed and all expenses must be justified Alternative scenarios provided by stakeholders (e.g.: sourcing options to reduce costs) Key successes Goal is to improve spending efficiency Already seeing spending cuts Operating expenditure estimated to decrease Savings from non-essential expenditure & cost efficiencies resulting from scrutinizing each expense from base zero Helps reduce fiscal deficit Enhances transparency & accountability Forces stakeholders to think about needs & assess expenses yearly • Solves problem of some departments being overfunded & others underfunded Learnings for Plateau State Avoid using a copy paste budget model as a baseline and move to zero based budgeting Allows for more efficient allocation of resources Given growing urgent spending priorities, this method proves more practical & sustainable Eliminates trap of falling into increased demand for funds for projects every year (baseline+inflation+new items to buy) Helps prioritize projects that need attention by having a view on the needs and expense analysis of each project yearly Expenditure needs analysis helps to save costs & reduce fiscal deficit Source: New Straits Times Article 'Government to implement zero based budgeting for procurement process; BCG analysis 259 Copyright 2019 by Boston Consulting Group. All rights reserved.#261Uganda introduced performance contracting & a budget monitoring & reporting unit geared towards the effective implementation of government projects Uganda חיווי Context MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT, UGANDA Lack of accountability mechanisms for government funded projects Sector spending units had no Proper work plans with quarterly plan and resource needs Ownership for misallocation of funds or not achieving stated goals What did Uganda country do? Created performance reporting contracting to monitor how different sector indicators¹ fair against stated targets over time · • . Performance contract signed between spending agency & Ministry of Finance (MoF2), declaring use of funds Annual performance contract states quarterly work plan Each quarterly performance report³ submitted to MoF outlining progress against work plan Launched budget monitoring & accountability unit to monitor prio. projects . Physically inspects & verify info. in performance contracts & reports Draw up semi-annual & annual performance reports Research reasons for underperformance & communicates with Ministry 1. Short, medium, long term indicators listed in the budget framework 2. Ministry of Finance; 3. Covers financial and physical performance Source: Uganda Ministry of Finance article; BCG Analysis Key successes Helps improve accountability Frequent measuring of progress against work plan Regular inspections by budget & monitoring unit Sectors required to submit written response explaining underperformance Annual performance report used to influence proceeding years budget cycle This helps improve service delivery to projects that are efficient at allocating budgets & reaching stated goals Learnings for Plateau State Look to introduce performance contracting for sector spending units Detail quarterly work plan & key KPI's that can be measured KPI's should include financial & physical plans & goals • Ensure they have the skills & tools to produce these reports Create dedicated monitoring & accountability unit for priority projects To do physical inspections Helps to verify progress of projects versus what sectors report Ensures the semi-annual & annual perf. report they give to MoF² is credible to use as a base for budget decision making Find ways to incentivize key projects underperformance vs. always cutting back on spend allocation 260 Copyright 2019 by Boston Consulting Group. All rights reserved.#262Kenya overhauled its budget execution policies to improve monitoring and transparency Kenya חיווי Context The National Treasury Poor budget execution hindered the country's ability to achieve its objectives Large difference between commitments and disbursements on projects Difficulty tracking budget execution across projects and agencies Misuse and misallocation of funds were common occurrences What did Kenya do? Introduced dedicated budget execution oversight Introduced the Office of the Controller of Budget, an independent institution tasked with overseeing the execution of budgets at the national and county levels The office supervises revenue collection and approves any withdrawal from public funds Shifted to a single treasury account, which helped streamline revenues/withdrawals and simplified monitoring Deployed new financial management tools Introduced a new integrated public financial management platform, which is able to track budget execution in-real time across government entities - The platform was designed to handle project-per-project budget execution, allowing more detailed tracking Source: Press Search; BCG Analysis Key successes Strengthened budget monitoring The office of the controller is able to track and block disbursements to: Entities that are underperforming or have high debt levels Entities that misuse or misallocate funds Gained the ability to compare between projects and entities in a standardized format to measure the effectiveness of budget execution Improved transparency Budget reporting has become easier to prepare and publish, allowing better disclosure to parliament and to the public Learnings for Plateau State Create dedicated budget execution monitoring entities Allows close monitoring of budget collection and disbursements • Able to track and stop the misuse or the poor-use of public funds Standardize and streamline financial management processes & procedures Standardization allows easier comparison between different entities and projects, which can improve the region's ability to track performance Simplifies financial reporting to oversight entities • 261 Copyright 2019 by Boston Consulting Group. All rights reserved.#263Best Practice: Key activities at L3 value stream for Financial Planning & Analysis الله Strategic planning Capital planning and budgeting FUTURE Illustrative Reporting and Annual planning and budgeting Forecasting performance management Decision support and situation- based analysis FP&A Management Understand government strategy Capital planning preparation Annual planning preparation Forecasting preparation Develop strategic plan Develop capital plan Establish MDA targets Develop forecasts Performance agreement Develop detailed annual plan Define reporting requirements and KPIs Standardize reporting templates Generate standard reports and analyze performance Perform variance analysis Profitability analysis Policies, procedures and controls Ad-hoc reporting and performance analysis Internal & External benchmarking Data management and governance 262 Copyright 2019 by Boston Consulting Group. All rights reserved.#264Best Practice: Structured project prioritization process Project classification Project evaluation Classify projects along clearly-defined Define prioritization logic and dimensions, e.g., • Buckets: Growth, efficiency, maintenance, legal, M&A,... Organizational unit Status (e.g. quality gate) evaluation criteria differentiated by project bucket • Financial performance Strategic fit Risk Evaluate projects based on differentiated criteria Project portfolio management Define budgets to ensure investment portfolio balance, e.g., • Short-term vs. long-term . • Big bets vs. small bets • Risk vs. return Prioritize projects based on bucket- specific ranking Transparency on current project portfolio Analytical base to prioritize projects Balanced project portfolio 263 Copyright 2019 by Boston Consulting Group. All rights reserved.#265Backup Best Practice: Prioritization logic differentiated between categories Category Growth Efficiency/ costs Legal Revenue-/capacity-increasing investments, e.g., • New investments Investments in portfolio Investments to improve operations, e.g., W/o revenue increase Mostly with P&L effect Mandatory investments due to, e.g., Legal requirements Contractual obligations Example: Fire protection Maintenance of existing infrastructure under consideration of target lifespan Maintenance Example: Replace machinery Prioritization logic Evaluate projects by profitability, strategic fit, risk, and status Rank projects based on scoring model Evaluate project by profitability, urgency and operational related criteria Rank projects based on scoring model Rank projects in two steps 1. Rough division by ability to postpone and type of the requirement 2. Detailed ranking by NPV Allocate budgets to MDAs to cover minimum necessary maintenance Measures are prioritized by the MDAs Source: BCG project example 264 Copyright 2019 by Boston Consulting Group. All rights reserved.#266Strategy implementation 265 Copyright © 2019 by Boston Consulting Group. All rights reserved.#267Agenda Summary of strategic initiatives & success factors Project Management Office (PMO) Introduction to PMO Plateau state PMO structure and organization Appendix 266 Copyright 2019 by Boston Consulting Group. All rights reserved.#268Agenda Summary of strategic initiatives & success factors Project Management Office (PMO) Introduction to PMO Plateau state PMO structure and organization Appendix 267 Copyright 2019 by Boston Consulting Group. All rights reserved.#269Recall The strategic vision for Plateau will be supported by 8 pillars H.E. Governor Lalong's Vision A B Agriculture Mining Economic re-birth D Sustainable development enablers E LL F G H 이이 State Government Revenue C Tourism Physical Infrastructure Human Capital Peace & Security Governance & Finance 8 Copyright © 2019 by Boston Consulting Group. All rights reserved.#270Five key principles will help ensure successful implementation of the strategy 1) 2) 3) 4) 5 ) Critical enablers and reforms must be prioritized first in order to enable long-term growth • Improved governance, data, infrastructure, and human capital must be addressed if Plateau wants to attract investors and donors to fuel private sector growth and further development ⚫ The governor should track progress on priorities through reports on KPIs • Funding must be prioritized according to the strategy • Government budgets must be dedicated to the key initiatives highlighted by the strategy and prioritize counterparty funding for major donations Transparency must be expected and enforced • Open data sharing must become part of the culture in order to enhance internal operations, donations, and investment Risks mitigation must be embedded within the strategic approach Key areas of risk must be considered and addressed through good governance and project management Accountability must be driven from the top • Each initiative will have clear MDA responsibility that will be accountable to the Office of the Governor for meeting deadlines and targets • A PMO can help drive accountability across government To be detailed in second section 269 Copyright 2019 by Boston Consulting Group. All rights reserved.#271• Goals- Activities →→ 1 2019 Plateau will build on institutional and business environment reforms to generate long term development 2020-2021 Build a foundation for Create an attractive growth environment Generate momentum with quick wins 2022+ Recall Capture investment Capitalize on growth Raise IGR, improve transparency, create the necessary organizational and data environment, and improve human capital Fund the journey, improve the workforce, and enable new government efforts Create favorable policies, sector conditions, security, and infrastructure Enable locally-driven profit increases and growth while improving security and connectivity Highlight successes, reforms, and infrastructure growth Drive private sector investment in agriculture, mining, and tourism Measure and advertise results and reinvest revenue for continuous improvement Scale existing sectors and expand to new ones 270 Copyright 2019 by Boston Consulting Group. All rights reserved.#272Goals 1 Detail: Plateau will build on institutional and business environment reforms to generate long term development • • • • 2019 Build a foundation for growth Fund future investments by increasing the revenue available to Plateau from current sources Enable improved planning and execution through MDA collaboration and data sharing Maximize funds through budget management and spend reform Improve basic skills for current and future workers 2020-2021 Create an attractive environment Improve supply, scale, and profitability of existing crops Improve supply of new crops, connected to demand Ensure state control of key mining and tourism sites Strengthen infrastructure connections and safety in key economic zones and travel corridors • . Capture investment Grow agro-processing in scaled, competitive foods (e.g., potato, maize, and milk) Launch JV for mining exploration and attract private sector tin and columbite processors Grow local tourism around Jos with private sector partners 2022+ Capitalize on growth • Reinvest to continue • . infrastructure improvements Attract additional private investment to agricultural and mineral processing Expand tourism offerings geographically and to new audiences Grow education and health sectors A.2 A.3 B.1 D.1 D.2 D.3 D.4 Initiatives E.2 E.7 E.8 F.1 F.2 F.3 F.4 F.5 E.1 E.3 E.4 E.4 E.5 G.1 H.1 H.2 H.3 H.4 G.1 G.2 G.3 A.1 A.2 A.3 B.3 C.1 A.4 B.2 B.3 C.2 C.3 Continuation of successful initiatives and strategies from first three phases 271 Economic focus Enabler Copyright 2019 by Boston Consulting Group. All rights reserved.#2731 The Governor can manage progress of his priorities by tracking key performance indicators KPIs recommended for the Governor's attention # of agro-hubs/commercial centers built and connected to power % change in farmer profit # of tin and columbite licenses held by PMDC # of visitors to Jos tourist sites % of adult citizens with a TIN % of land registered Average time to ship perishable goods to major markets % of primary and secondary teachers with proper qualifications % of primary care centers with general practitioners present daily # of violent incidents in economic centers and along transit routes % variation between budgeted and actual spend % of MDA priority statistics published online by Bureau of Statistics Responsible MDAs Desired trend Ministry of Agriculture, Ministry of Energy ↑ ↑ Ministry of Agriculture Ministry of Mineral Development, PMDC Ministry of Tourism, Plateau Tourism Agency Board of Internal Revenue Ministry of Lands and Survey Ministry of Transport, Ministry of Works Ministry of Education Ministry of Health Office of the Governor Ministry of Budget and Economic Planning Bureau of Statistics 272 Copyright 2019 by Boston Consulting Group. All rights reserved.#2742 Donor support for capacity building and development initiatives ...with state counterparty funding to unlock critical donations H.E Governor Lalong's Vision Funding the vision will require support from the state, private sector investors, and donors A B Agriculture Mining D E F G H A བཱ State Government Revenue Physical infrastructure Human Capital Peace and Security Private sector investment for infrastructure wherever possible, and state or federal funding when investment is not available Governance and Finance Privatized state assets where possible, or joint ventures and PPPs in mining and tourism Tourism Dedicated state funding for inherently governmental functions such as security increases and tax collection 273 Copyright 2019 by Boston Consulting Group. All rights reserved.#2753 Regular, accurate, and electronic data collection and sharing will aid management and attract donors Collect • Enhance data reporting from the field and capture through electronic means Aggregate Aggregate electronic data at MDA level Share Report KPIs to PMO and Ministry of Budget and Planning • Share with Bureau of Statistics and other MDAS • Publish data online for public consumption and validation ...Improved funding decisions ...Reprioritization of efforts as needed ...Increased donor and investor interest 274 Copyright © 2019 by Boston Consulting Group. All rights reserved.#2764 Addressing key areas of risks will enable successful implementation of strategy Category Project management People Governance Financial Regulatory & Legal Risk High interdependencies among initiatives may lead to delays Insufficient issue resolution procedures to address problems relating to data gathering, bottlenecks etc. Limited skillset in MDAs to implement initiatives and adapt to new ways of working Resistance to change from the top, due to political interests Lack of sponsorship from the top, due to other political distractions Limited socialization & stakeholder management Poor response to change efforts, resulting in loss of support and momentum in implementation Limited funding to support implementation of strategic initiatives due to inadequate prioritization of expenses Reduction in federal allocation Regulatory and legal delays (e.g. delays in getting laws changed, getting new laws approved) Mitigants incorporated in strategy Emphasized need for strong coordination among initiative leads and prioritization of interdependent actions in each initiative plan Detailed out a clear issue resolution process in PMO Incorporated the need for training of MDA staff in several initiatives (Inter and Intra-MDA trainings) Emphasized the need for the Governor to clearly communicate the importance of implementation and hold MDA Commissioners and Permanent Secretaries accountable for performance Weekly inclusion of Governor in updates to ensure this is a priority on his agenda and ensure consistent engagement on progress of initiatives Recommended meeting cadence and communications plan to ensure constant alignment and engagement across MDAs and with citizens Recommended that the Governor showcase positive impacts of initiatives to MDAs and citizens to drive sustained support Recommended prioritization of investments to start with those which can generate additional IGR and encourage donor funding Recommended and provided materials to attain alternative sources of funds (e.g. donors, investors) Stressed the need for Governor to use his political influence to expedite the amendment and passage of laws ·27.5. Copyright 2019 by Boston Consulting Group. All rights reserved.#277The strategic pillars will be implemented through 35 initiatives across the state government accountable to the Office of the Governor (I/III) A B C Pillars Agriculture Increase value of crops sales and food processing Mining Increase revenue from state- owned concessions and fees and improve private investment Tourism Develop an environment for private tourism investment Primary initiatives A.1 Promote cooperatives and encourage farmer participation A.2 Develop the strategy and overarching policies A.3 Build capacity and disseminate knowledge A.4 Attract investments into the agro-food processing industry B.1 Maximize revenue collection B.2 Improve attractiveness for investors B.3 Maximize potential of PMDC B.4 Improve investor-community relations C.1 Develop priority locations C.2 Improve attractiveness for investors C.3 Launch a targeted marketing strategy Initiative lead(s) Ministry of Agriculture & Ministry of Commerce and Investment Ministry of Agriculture Ministry of Education & Ministry of Agriculture Ministry of Commerce and Investment & Ministry of Agriculture Ministry of Mineral Development & Board of Internal Revenue Ministry of Mineral Development, Plateau State Mineral Development Company, Ministry of Commerce and Investment Ministry of Mineral Development & Plateau State Mineral Development Company Ministry of Mineral Development Ministry of Tourism Ministry of Tourism & Ministry of Commerce and Investment Ministry of Tourism 276 Copyright 2019 by Boston Consulting Group. All rights reserved.#278The strategic pillars will be implemented through 35 initiatives across the state government accountable to the Office of the Governor (II/III) D E Pillars Revenue Improve revenue capture across MDAs Infrastructure Create the infrastructure needed for growth through coordinated road, energy, and water efforts Primary initiatives D.1 Increase tax registration rates D.2 Reform land registration D.3 Increase transparency for cross-MDA tax payments D.4 Streamline revenue collection across MDAs E.1 Attract private sector investment for high value transport infrastructure E.2 Maximize revenue collection from existing road/vehicle streams E.3 Ensure dedicated funding for road maintenance E.4 Attract investment to improve grid connections E.5 Expand existing efforts to enable mini-grid investments E.6 Implement planned water laws and sanitation practices E.7 Prepare the Water Board for commercialization E.8 Create an overall development plan and improve coordination Initiative lead(s) Board of Internal Revenue Board of Internal Revenue & Ministry Lands, Survey and Town Planning Board of Internal Revenue & Plateau State ICT Development Agency Board of Internal Revenue & Plateau State ICT Development Agency Ministry of Works Ministry of Transportation & Ministry of Works Ministry of Works Ministry of Energy and Water Resources Ministry of Energy and Water Resources Ministry of Energy and Water Resources Plateau State Water Board Plateau State Infrastructural Unit 277 Copyright 2019 by Boston Consulting Group. All rights reserved.#279The strategic pillars will be implemented through 35 initiatives across the state government accountable to the Office of the Governor (III/III) F G H Pillars Human capital Improve the state of Plateau's human capital through investments in education and healthcare Peace and security Improve coordination and funding for peacebuilding efforts across all peace- related organizations Governance and finance Reform management, coordination, and data practices across MDAs Primary initiatives F.1 Increase number of teachers and children in schools F.2 Ensure quality of teachers and curriculum F.3 Grow ICT skills F.4 Expand access to healthcare F.5 Ensure quality of healthcare and service delivery G.1 Improve coordination among stakeholders G.2 Ensure security of key transit routes & economic centers G.3 Improve mediation efforts in conflict-prone areas H.1 Reform budget management process H.2 Execute spend effectively and accurately H.3 Reorganize MDAs and improve collaboration and accountability H.4 Improve transparency and data Initiative lead(s) Ministry of Education, Plateau State Universal Basic Education Board Ministry of Education, Plateau State Universal Basic Education Board ICT Development Agency Ministry of Health Ministry of Health Office of Secretary to the State government Office of Secretary to the State government Office of Secretary to the State government Ministry of Budget and Economic Planning, Office of Secretary to the State government Ministry of Finance, Office of the Governor Office of the Governor Office of the Governor 278 Copyright 2019 by Boston Consulting Group. All rights reserved.#280Agenda Summary of strategic initiatives & success factors Project Management Office (PMO) > Introduction to PMO Plateau state PMO structure and organization 279 Copyright 2019 by Boston Consulting Group. All rights reserved.#281NEW SOM Plateau needs a dedicated team (PMO) to track and support the successful implementation of these strategic initiatives 280 Copyright 2019 by Boston Consulting Group. All rights reserved.#282• What is a PMO? What does a PMO do? "PMO" stands for Program Management Office PMO will act as the coordinating body during this change effort to ensure effective and timely execution of initiatives PMO is ... PMO does ... At the most basic level Provide coordination and support to initiative leads Ensure key concerned MDAs are engaged and collaborating Provide a consistent, overall view of progress on all initiatives, issues, and interdependencies Communicate key information throughout implementation (e.g. timelines, updates, directives, etc) The PMO can take on a broader scope as needed to deliver value and support the Governor 281 Copyright © 2019 by Boston Consulting Group. All rights reserved.#283A project management office is critical to counteract the main reasons why initiatives fail What was the single most important factor in determining the failure of initiatives? Lack of clearly defined and/or achievable milestones and objectives to measure progress Lack of commitment by senior management 20% Employee resistance 18% Insufficient funding 15% 28% How a PMO can help Provides overall view of progress • Provides the discipline, oversight, and level of detail needed for leaders to manage multiple initiatives (e.g., metrics, reports, priority setting, conflict resolution) Sets priorities and timing to mutually reinforce initiatives Promotes a close working relationship with the Governor that helps ensure leadership engagement . Helps create and maintain a sense of urgency Drives coordinated communication and creates a clear picture of what the change is, why it is needed, and how people will be impacted • Maintains perspective of key constituencies (citizens, civil servants) • Monitors the MDAs' concerns and ensures commitment to initiatives Poor communication 14% Source: PMIⓇ 2016 Thought Leadership Series/Economist Intelligence Unit Survey "Strengthening benefits awareness in the C-suite", 2016 282 Copyright 2019 by Boston Consulting Group. All rights reserved.#284Choosing the right PMO model is critical for effective governance Content Passive PMO • Structure output of teams • Consolidate expertise of integration teams • Moderate team meetings Activist PMO ⚫ Challenge content and targets delivered by teams Bring in additional outside-in topic expertise where needed • Participate in meetings as active member Process • • Consolidate Oversee overall change process Track progress and benefits Communicate organizational and cultural change Challenge • Actively design overall change process Challenge benefits and progress Assist org-design and manage cultural change Plateau should use a hybrid of the Passive and Activist PMO model Source: BCG project experience Facilitate Drive 283 Copyright © 2019 by Boston Consulting Group. All rights reserved.#285Agenda Summary of strategic initiatives & success factors Project Management Office (PMO) Introduction to PMO Plateau state PMO structure and organization 284 Copyright 2019 by Boston Consulting Group. All rights reserved.#286BCG recommends the Office of the Governor sets up a dedicated PMO with a clear structure and roles and responsibilities Executive Governor Chief of Staff Chief of staff PMO Special Advisor1 ICT officer² Economic Infrastructure Social Officer Officer Officer Sector officers Ministry of Ministry of Ministry of Agriculture Works Education Initiative Sample MDAS Ministry of Mining Ministry of Tourism Ministry of Transport Ministry of Health leads Min. of Water Peace building & Energy... Agency 1. PMO Manager; 2. From Bureau of Statistics Role Responsibilities Sets priorities Executive Governor Special advisor . Approves project status Approves changes to targets (e.g. timeline, associated costs) Prioritizes initiatives if required (e.g. regarding available IT/financial resources) Acts as last instance of escalation for implementation issues Oversees and manages overall project progress and reports to the Executive Governor Challenges special advisor if targets are not realized in time • Acts as second line of escalation for issue resolution Facilitates project related communication between MDAs and Governor Tracks milestones & regularly reports implementation progress to Chief of Staff Assesses issues & tries to find feasible solutions before escalating outside PMO Helps to define action plan for initiative lead if implementation is not on track Coordinates interdependencies between initiatives and reports Offers guidance to initiative leads and resolves implementation issues Defines detailed project plan and staff team for implementation (if necessary) Drives initiative implementation Are held accountable if targets are not achieved Reports implementation progress and potential roadblocks to dedicated Sector officer 285 Copyright 2019 by Boston Consulting Group. All rights reserved.#287The PMO must establish an ongoing meeting cadence to ensure alignment and timely issue resolution Meeting Participants Objective Frequency Executive Governor update • Executive Governor • Brief on overall status of initiatives Monthly Chief of Staff • Receive input on progress to date (deep dive on all KPIs) • Special advisor • Sign-off action plan for escalated issues • Sector officer Leadership update Governor as available • Review overall initiative progress Weekly Chief of Staff • Gain senior alignment on direction of all initiatives Special advisor • Address and resolve critical issues escalated Special advisor check in Sector officers check-in Sector officers Special advisor • Discuss last week's achievements and Weekly Sector officers potential roadblocks • Selected Initiative leads . Define and align next steps for upcoming week . Identify issues to be escalated Sector officers Review weekly status reports (project plan) and define next Regularly Initiative leads steps • Discuss roadblocks and open issues . Highlight potential interdependencies and areas of cross MDA collaboration 286 Copyright 2019 by Boston Consulting Group. All rights reserved.#288Backup Monthly Executive Governor update meetings should be used to monitor progress of initiatives and raise critical issues Monthly Roadmap Update Minimum 1 hour slot for Executive Governor update meeting once a month Presentation made by Chief of Staff and Special Advisor with relevant Sector officers Tracking of milestones, KPIs and various responsibilities Illustrative agenda for monthly Executive Governor update meeting Item Description Timeframe 1 Introduction 09:00-09:10 What is the aim of this meeting? 2 State Budget Review 09:10 09:30 What is the current financial situation? 3 Strategy implementation Update 09:30 10:30 What is the overall implementation status? 4 11:00 - ... Illustration for monthly Executive Governor update meeting Progress report best practices Report on progress of each initiative on the roadmap Ensure progress is measurable with KPIs and someone is assigned responsibility for completeness Use stoplight method to track status Item Agro hubs development B ΚΡΙ Responsible Status 6 hubs Min. Agriculture Comment 287 Copyright 2019 by Boston Consulting Group. All rights reserved.#289Initiative charters will help the PMO manage necessary actions, stakeholders, outputs, and progress Sample charter Initiative number and name Action which supports the initiative Benchmark example available Detailed steps for MDAs to take Stakeholders to be involved in planning and execution Nigeria F.1 Human capital Strategic pillar Education: Increase the number of teachers and children in schools (II/II) Initiative objective Initiative Lead 車 Ensure that schools have adequate teachers across all subject areas " Improve enrolment rate across all levels of education F.1.3: Perm. Sec. Ministry of Education, PSUBEB5 Chairman Actions Recommended timeline 6 months timeline for PMO to track progress Primary responsible MDA Outputs and expected F.1.3 Improve the number of children in schools • Seek funding from donors (e.g., World Bank's Nigeria-Kaduna State Economic Transformation Program) to build new schools and upgrade existing ones Institute state law (e.g., Federal Gov't UBE² Act), making primary education compulsory for children aged 5 to 11, and seek donors (e.g., BMGF's Global Education Program In Kaduna) to provide support Maintain free lunch program at primary education, pilot free education and lunch program for JSS³ in selected LGAs, and partner with donors (eg., BMGF's Global Education Program In Kaduna) to support and subsidize other supporting fees (e.g., school uniforms) Stakeholders Ministry of Education Plateau State Universal Basic Education Board Teachers Service Commission Deliverables ■ Prioritized list of schools for upgrading and LGAs for building schools Gazetted law on compulsory primary education ■ Cost estimate and likely impact of free education and lunch program at JSS³ - World Bank • 6 months • 6 months Resources Counterparty fund-state government Teacher replacement fund-state gov't ⚫ Infrastructure funding for schools Funding for pilot free education and lunch program Bill and Melinda Gates Foundation Metrics 1. Bill and Melinda Gates Foundation 2. Universal Basic Education 3. Junior Secondary Schools 4, Local Government Areas 5. Plateau State Universal Basic Education Board Draft Increase in enrolment rate Increase in number of teachers Increase in number of teachers in rural areas Potential quick-win 196 copyright is er bj met outing and right Metrics for PMO to track impact Expected resource needs and sources 288 Copyright 2019 by Boston Consulting Group. All rights reserved.#290PMO will need a resolution process through which to identify and resolve critical issues Illustrative example Sector officers and/or PMO can escalate unresolved project issues to Special advisor Special advisor and/or PMO can escalate unresolved project issues to Chief of Staff Chief of staff can escalate unresolved issues to Executive Governor Executive Governor Chief of Staff Sector officer Sector officers are encouraged to identify issues/risks and resolve to extent possible Special Advisor Issues should be raised at Chief of Staff update meetings Chief of Staff can leverage Executive Governor update meetings to find resolution to issues PMO should record issues and efforts to resolve them in order to track progress 289 Copyright © 2019 by Boston Consulting Group. All rights reserved.#291PMO will need to support the Governor's communication of the strategy, efforts, and results to citizens and government stakeholders Planning Develop/update key content & supporting materials • Case for change: highlighting the • • rationale for change, change vision and how to get there and implications for stakeholders Summary of strategy, scope & objectives FAQs/talking points Create stakeholder engagement plan • People (key influencers and sceptics) • Likely issues ("hot topics") Plan and launch communication cascade for updates on progress and results Timeline/plan for messaging waves to citizens and MDA staff Communication Launch new channels and leverage existing broadcast forums State website, Ministry meetings, Instagram, Facebook etc. Enroll initiative leads as advocates Team-level stakeholder engagement Explicit ask of Initiative Leads to lead change (change agents) Engage Executive Governor Quarterly meetings with initiative leads to review success stories, common concerns and distribute awards of excellence for outstanding work Feedback Launch targeted feedback surveys to: MDA staff to track progress of, and concerns with, implementation of initiatives Citizens to get comments on impact of, and concerns with initiatives Share concerns and issues with the Governor • In weekly and monthly Governor update meetings Via specific mailbox where MDA staff and citizens can send comments 290 Copyright 2019 by Boston Consulting Group. All rights reserved.#292Appendix 291 Copyright © 2019 by Boston Consulting Group. All rights reserved.#293Detail: Plateau should sequence its near-term efforts to achieve long-term, sustainable growth (i/iv) 2019 2020-2021 2022+ Build a foundation for growth Create an attractive environment Capture investment Capitalize on growth Goals Initiatives Fund future investments by increasing the revenue available to Plateau from current sources Enable improved planning and execution through MDA collaboration and data sharing Maximize funds through budget management and spend reform Improve basic skills for current and future workers B.1 D.1 D.2 D.3 D.4 E.2 E.7 A.2 E.8 G.1 H.3 H.4 E.8 H.1 H.2 A.3 F1 F.2 F.3 F.4 F.5 292 Economic focus Enabler Copyright 2019 by Boston Consulting Group. All rights reserved.#294Detail: Plateau should sequence its near-term efforts to achieve long-term, sustainable growth (ii/iv) 2019 2020-2021 2022+ Build a foundation for growth Create an attractive environment Capture investment Capitalize on growth Goals Initiatives Improve supply, scale, and profitability of existing crops like yam, maize, and potato Improve supply of new crops, connected to new sources of demand Ensure state ownership of key mining and tourism sites Strengthen infrastructure connections within and between agro-hubs and major markets, and mining areas and Lagos Ensure safety in key economic zones and travel corridors A.1 A.2 A.3 A.1 A.2 A.3 B.3 C.1 E.1 E.3 E.4 E.4 E.5 G.1 G.2 G.3 293 Economic focus Enabler Copyright 2019 by Boston Consulting Group. All rights reserved.#295Detail: Plateau should sequence its near-term efforts to achieve long-term, sustainable growth (iii/iv) 2019 2020-2021 2022+ Build a foundation for growth Create an attractive environment Capture investment Capitalize on growth Goals Grow agro-processing in scaled, competitive foods (e.g., potato, maize, and milk) Launch JV for mining exploration and attract private sector tin and columbite processors Grow local tourism around Jos with private sector partners A.4 B.2 B.3 C.2 C.3 Initiatives 294 Economic focus Enabler Copyright 2019 by Boston Consulting Group. All rights reserved.#296Detail: Plateau should sequence its near-term efforts to achieve long-term, sustainable growth (iv/iv) 2019 2020-2021 2022+ Build a foundation for growth Create an attractive environment Capture investment Capitalize on growth Goals Reinvest to continue infrastructure improvements Attract additional private investment to agricultural and mineral processing Expand tourism offerings geographically and to new audiences Capture increased IGR through taxation reforms Grow education and health sectors Initiatives Continuation of successful initiatives and strategies from first three phases 295 Economic focus Enabler Copyright 2019 by Boston Consulting Group. All rights reserved.#297Plateau should focus on a few key efforts to secure quick wins and critical investments... Effort Build agro-hubs and associated infrastructure Develop seed and fertilizer certification programs Build cold storage and incentivize scale and offtaking for perishable foods Attract potato and maize processing to planned agro-hubs and Jos Develop truck terminals near agro hubs and largest towns Potential funding Private Donors Related initiatives State A.1 E.8 A.2 A.4 A.2 A.3 E.1 Partner to build toll roads and bridges in critical corridors Privatize operation of Jos tourist attractions Launch JV with investor for tin and columbite exploration E.1 C.2 B.3 Attract solar and mini-grid investors near agro-hubs and larger off-grid towns E.5 Concentrate security around key economic centers and transit routes G.2 296 Counterparty funding required Copyright 2019 by Boston Consulting Group. All rights reserved.#298...while improving donor funding for development initiatives Effort Reform budget and funding practices Mandate data sharing across MDAs and with Bureau of Statistics Create a donor outreach strategy Track teacher and doctor presence and basic performance Potential funding Related initiatives State Private Donors H.1 H.2 H.4 H.3 F.2 F.5 Identify and address unqualified teachers and health professionals F.2 F.5 Mandate primary schooling and fund JSS fees F.1 Create rotational programs and incentives for rural postings F.1 F.4 Improve mediator numbers and quality G.3 297 Counterparty funding required Copyright 2019 by Boston Consulting Group. All rights reserved.#299PMO should define what is "in scope" and "out of scope" to ensure proper allocation of resources and levels of decision making Non Exhaustive ✓ In scope • . • Supporting coordination, integration and communication between initiatives and across MDAs Providing decision support and preparing material for update meetings to the Executive Governor Overseeing overall strategy implementation management Consolidate targets and create mechanism for tracking Identify potential issues Track and report achievement of targets Ensuring adequate collaboration in executing strategy and implementing initiatives Proactively identify roadblocks hindering initiative progress and support prompt resolution Communicating proactively and regularly to Executive Governor and other key stakeholders to address issues XOut of scope ⚫ Individual initiative roadmap management • • Individual initiative communication, design, and delivery Approving new initiatives (i.e. go/no-go decision) Role of Executive Governor Auditing existing initiatives Monitoring and advising on sub-initiative progress and issues 298 Copyright 2019 by Boston Consulting Group. All rights reserved.#300Getting the right PMO manager is essential PMO manager requirements profile Can constructively deal with high complexity and is an agent of change Professional . Experience in relevant aspects of the many of the issues likely to be encountered during implementation of initiatives but more a generalist than a specialist • Able to rally and motivate people • Able to influence without formal authority Proven to deliver results Project management experience • Ability to frame complex or ambiguous issues by asking key questions Scope definition, and ability to break large challenges into smaller tasks Delegation, coordination and risk management Well positioned and well respected Position • Senior figure with clear support from the Executive Governor 100% committed to the implementation and success of the state's strategy Will have to be able to gain the acceptance and support of various MDA commissioners Is familiar with ways working in MDAs and government Other qualities Seen to be of high personal integrity Communication skills and ability to engage and convince skeptics The best PMO manager: The experienced staffer and resilient advocate for change • Problem solver 299 Copyright © 2019 by Boston Consulting Group. All rights reserved.#301Disclaimer The services and materials provided by Boston Consulting Group (BCG) are subject to BCG's Standard Terms (a copy of which is available upon request) or such other agreement as may have been previously executed by BCG. BCG does not provide legal, accounting, or tax advice. The Client is responsible for obtaining independent advice concerning these matters. This advice may affect the guidance given by BCG. Further, BCG has made no undertaking to update these materials after the date hereof, notwithstanding that such information may become outdated or inaccurate. The materials contained in this presentation are designed for the sole use by the board of directors or senior management of the Client and solely for the limited purposes described in the presentation. The materials shall not be copied or given to any person or entity other than the Client ("Third Party") without the prior written consent of BCG. 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