BOTA

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BOTA

• KAZAKHSTAN CHILD AND YOUTH DEVELOPMENT FOUNDATION

April 28, 2008
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BOTA KAZAKH CHILD AND YOUTH DEVELOPMENT
FOUNDATIONSummary

• Objective
• The Foundation will support development of poor
  children and youth in Kazakhstan by improving
  opportunities for their education, health and
  social inclusion opportunities.
• Finance and Duration
• US84 million over a period of 4 years (circa
  US100 million including accumulated interest)
• BOTA will continue beyond this 4 year period
  financed from other sources (which need to be
  mobilized)
• Proposed Structure
• Founders
• Board of Trustees
• Program Manager
• World Bank
• Bota Foundation Programs
• Conditional Cash Transfers (CCT)
• Social Services Program
• Higher Education Scholarship Program

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OBJECTIVE

• Objective The Foundation will support
  development of poor children and youth in
  Kazakhstan by improving opportunities for their
  education, health and social inclusion.
• Principles
• Transparent
• Independent
• Poverty-focused
• Effective

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Proposed Structure

• The Founders Membership and Nominations
• Five distinguished Kazakhstan individuals
  establish the Foundation
• The individuals would be highly respected figures
  in the community, recognized and respected for
  their integrity and well known for their
  Championship of childrens causes
• The Foundation structure will be completely
  independent from the Government, the authorities
  and large business interests.
• The Founders will also serve as Trustees on the
  Board of Trustees (BoT), along with the
  designated Trustees from the governments of the
  USA and Swiss Confederation.
• The Program Manager will be engaged by the Bota
  Foundation for the implementation,
  administration, management and expenditures of
  the Bota programs in accordance with the
  Operations Manual (being drafted) and the
  Management Agreement (RFP Contract Form).

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Core Documents
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BOTA PROGRAMS

• The Foundation will manage 3 programs
• Conditional Cash Transfer (CCT) Program
• Social Services Program
• Higher Education Scholarship Program

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Rationale for the CCT

• Provide financial support to poor households and
  in so doing change behavior to improve the future
  of their children.
• Focus on key needs
• reduce malnutrition (especially anemia) in
  pregnant lactating women
• enhance nutrition and preventive healthcare for
  children 0-3 years
• improve access to pre-school education 4-6 years
• limit institutionalization of disabled children
  3-16 years.

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CCT Overview
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CCT Benefit Levels
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CCT Selection Process
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CCT Coverage

• Benefit goes to mothers
• Based upon 5 poorest oblasts (12.2 coverage of
  population therein)
• Alternative, entire country (coverage about 3.5
  plus higher administrative costs)

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Rationale for the Social Services Program

• Develop good practice social services targeted to
  poor and disadvantaged youth throughout the
  country.
• Support the development of NGO services.
• Support process of involving the local community
  in decision-making and where applicable, in the
  implementation of such services.
• Enhance supply-side of services related to the
  CCT.

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SOCIAL SERVICES PROGRAM

• NGO (local or international) projects for the
  poor vulnerable includes activities aimed at
• improving child/pregnant lactating womens
  nutrition
• expanding pre-school education
• promotion of youth employment opportunities
• providing services focused on
• reducing child labor
• community based services to disabled children
• shelters for runaway and homeless children
• promoting and developing family based care for
  children deprived of parental care
• raising awareness on and decreasing child abuse
  and violence
• reducing juvenile delinquency
• expanding youth activities and resource centers
• skills development for school drop-outs
• other related activities.

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Rationale for the Higher Education Scholarship
Program

• Help poor youth (with strong academic
  performance) to undertake higher education
  including vocational education within Kazakhstan.
• Complements, but does not substitute for
  government and other NGO programs.
• To develop a program that would ensure that all
  Kazakh youth are provided the opportunity to
  receive education, i.e. addressing demand side
  needs.

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Higher Education Scholarship Program

• Scholarships to poor students admitted on
  tuition basis (i.e. not receiving a grant).
• Not receiving other support.
• Proxy means test.
• Academic record.
• At average cost of U5,000 per student per year
  means that 2,000 student-years could be covered.
• Vocational education bursaries might have lower
  cost.

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Flow of Funds
Funds
BOTA FOUNDATION (BoT and Program Manager)
Auditor
Bank Account in Acceptable Commercial Bank
Social Services (to NGO projects) US10 million
CCT (to be selected beneficiaries in 5 selected
oblast) US 65 million
Tertiary Education Scholarship (to poor
students) US10 million
Eligible mothers via Kazpost transfer
Scholarships to eligible youth
World Bank overall technical and fiduciary
supervision over the scheme
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Proposed Bota Foundation/Program Manager Structure
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Role of the Founders

• Founders of the Bota Foundation, but not required
  to make a financial contribution.
• Perform duties in accordance with existing
  legislation in Kazakhstan.
• Except that the three Governments (Kazakhstan,
  USA and Swiss Confederation) retain powers of
  approval.

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Role of the BoT

• Acts as Collegial Managing Body for the
  Foundation .
• Establishes policy and performance targets for
  the Bota Foundation.
• Oversees the performance of the Program Manager.
• Approves the budget for the Bota Foundation.
• Amends the Operational Manual.
• Approves major decisions of the Program Manager
  (in accordance with the Operational Manual).
• All with the agreement of the three parties
  (Governments of Kazakhstan, USA and the Swiss
  Confederation).

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Role of the Program Manager

• Will implement the Bota programs in accordance
  with the Operations Manual.
• Reports to the BoT.
• International NGO to be recruited transparently.
• Will recruit and develop local expertise to
  undertake all functions within the 4 year
  contract period so as to ensure sustainability of
  the Bota Foundation.

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Role of the World Bank

• Provision of technical assistance for the
  establishment of the Foundation and its initial
  operation, in particular with respect to
• Legal establishment of the Foundation
• Selection of Founders and Board of Trustee (BoT)
  members (to be approved by the three governments
  concerned)
• Drafting of Foundation Charter and By-Laws
• Selection of international NGO as Foundation
  Manager (to be approved by the BoT and the three
  governments concerned)
• Drafting of Operational Manual
• Training and capacity building for the NGO in the
  areas of procurement and financial management
  and
• Advice on grant-making, scholarship programs,
  monitoring evaluation, based upon international
  good practice.

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Role of the World Bankcontinued

• Supervision of the Bota Foundation implementation
  pursuant to the Supervision Agreement with the
  Foundation, the Bank will
• Exercise the same level of care in performing the
  services under the Supervision Agreement
  (currently in draft only) as it exercises in its
  monitoring activities for its own lending and
  grant making operations.
• Monitor the compliance of the Foundation and its
  Program Manager with the procedures set forth in
  the Operational Manual.
• Review the Bota Foundation program progress
  reports and audits of the Foundation.
• Issue regular supervision reports to the
  Foundation and the three governments concerned
  (these reports will include procurement reviews,
  financial management assessments, review of
  audits and monitoring and evaluation systems for
  evaluation of development impact).