HEDP is organized into two components:

(a) a Higher Education Development Program component; and (b) a Program Operations and Technical Support component. These components are different in nature, but complementary. The first component (US$ 40 million) is comprehensive and has been designed to directly support NHESP-II. The flow of funds under this component follows a results-based financing arrangement. Disbursements are linked to a specific result that would contribute to the achievement of the overall objectives of the NHESP-II and the HEDP.

Component 1: Higher Education Development Program

This component supports the implementation of the NHESP-II through a Results–Based Financing (RBF) modality. Disbursements are associated with specific results called Disbursement Linked Indicators (DLIs). Financing is provided against Eligible Expenditures Programs (EEPs) selected from annual MoHE budgets, rather than against specific inputs. The following key themes are supported under the component.