SUDAN Multi Donor Trust Funds. Oversight Committee Meeting MDTF NATIONAL. Minutes August 28, 2006

Transcription

1 SUDAN Multi Donor Trust Funds Oversight Committee Meeting MDTF NATIONAL Minutes August 28, 2006

2 Highlights: Grant Agreement for Capacity Building of the Sudan Judiciary signed on August 23, 2006 MDTF website launched Press release distributed. Two FPPs approved: National Emergency Transport Rehabilitation Project Decentralized Health System Development Project Two IPPs approved: Improving Agricultural Support Services and Support to Livestock Production Three IPPs/Project Ideas not approved Micro-Enterprise Development (to be re-submitted) New Currency (to be re-submitted) Graduate Employment Fund Program (rejected) Action Points Responsibility MDTF-N Status Donors convert their Oslo pledges into commitments, and commitments into MDTF donors deposits. More work needs to be done on MDTF resource mobilization especially by MoFNE/MDTF-TS MOFNE, as the contacts established so far have not proved effective. Chair / Co-Chair Additional efforts supported by the Govt. and the Netherlands (as Co-Chair) should start before the 2 nd Sudan Consortium. MDTF Operational Manual ( OM): Government. And donors should be consulted before OM is finalized. MDTF-TS WB-UN General Agreement Both the Govt. and Donors should be informed on the follow-up discussions and final agreement concerning the Bank/UN framework for cooperation under MDTFs Three Areas At the next OC-N meeting: Present detailed information on the financial transfers from the Federal Government to the Three Areas jurisdictions. MDTF-TS MoFNE Present an overview of the MDTF-N strategy and programs for Three Areas... MDTF-TS Thematic Groups Recalculate the list indicating donor preferences for thematic groups. UN Monitoring Progress reports by PWC should be shared with all OC members. MDTF-TS Sudan Consortium WB and UN discuss further the contents of the SC as well as their respective roles MOFNE discuss and agree on SC arrangements with relevant GONU/GOSS entities WB & UN MoFNE MDTF/NGO Strategy MDTF/NGO Strategy Paper to be discussed at next OC meeting MDTF-TS AOB Report on sector policy notes under preparation by MDTF-TS/World Bank at next OC meeting Report on studies and training programs approved by MDTF- TS for TAF at next OC meeting Next Oversight Committee meeting to be held in 6-8 weeks. MDTF-TS MDTF-TS MDTF-TS

3 SUDAN Multi Donor Trust Funds Draft Oversight Committee Meeting MDTF NATIONAL Minutes August 28, 2006 The 2 nd meeting of the Oversight Committee (OC) for the Sudan National Multi Donor Trust Fund (MDTF-N) was held on August 28, 2006, in Khartoum. The meeting was chaired by Sheikh Elmak, Under-Secretary of the GoNU Ministry of Finance and National Economy (MoFNE) and co-chaired by Corina Van der Laan, Deputy Head of Mision of the Embassy of the Netherlands in Khartoum. The list of Attendance (members and observers) is attached as Annex 1. I Agenda and Minutes The Agenda was approved with the following additions (under AOB): the Framework for MDTF/NGOs cooperation; and MDTF TS/Bank-executed sector policy l studies to be conducted under the MDTF-N. The Minutes of the OC-N meeting, held on April 19, 2006, were approved. II Updates MDTF-N status Information on donor pledges/contributions, MDTF-portfolio and disbursements was presented as shown in Tables 1. The MDTF-TS explained the linkage between MDTF donor commitments and project disbursements. The World Bank can commit MDTF funds to projects i.e. sign project Grant Agreements (GAs) only to the limit of actual fund availability in the MDTF donor accounts held by the World Bank. It should also be noted that the average time lag between project approval by OC and project effectiveness (when the project is ready to disburse) is about 6-9 months. Furthermore, the Government co-finances the major proportion of project costs and the government funds cannot be disbursed unless the external funds are available and the GAs are signed. The Government, however, has started to advance its own funds before MDTF grants are effective. But this requires retroactive financing provisions in GAs.Thus timely allocation and deposit of funds by donors into their MDTF accounts is a critical factor in expediting project disbursements, albeit with a time lag. As for the 2006 MDTF donor commitments: Netherlands confirmed release of the 2 nd tranche of their commitment. Norway and UK : also confirmed releases in accordance with the commitments; Sweden: confirmed that the 2 nd tranche is ready to be disbursed The Bank/MDTF-TS have continued efforts to mobilize additional resources for MDTFs:

4 Saudi Arabia and Arab League: both need a formal request from the Govt/MoFNE as any pledges for the MDTF are part of their overall support to the GoNU. Italy: no clear indication has been given so far on converting their Oslo pledges into commitments; France: continues to show interest in supporting MDTFs. Germany: commitment to MDTF-N is linked to the fulfillment of specific political conditions. Egypt: pledged US$ 1.0 million (to the MDTF-South), but is asking a seat at the OC-S. This request is being discussed by the OC-S, and a decision is expected soon... As to the likelihood of mobilizing additional funding, it was concluded that in principle this should not be a problem at least for some donors; for example, additional funds are theoretically available from UK, which has a major program in the Sudan but 60% of this goes for humanitarian purposes. The MDTF would be its preferred delivery mechanism as the transition from humanitarian to development assistance takes place.. The OC concluded that: Donors convert their Oslo pledges into commitments, and commitments into actual deposits, subject to :a realistic assessment of expected disbursements by the MDTF-N,while maintaining, in aggregate, the cofinancing target of 1/3 from external sources and 2/3 from the Govt.; More work needs to be done on MDTF resource mobilization especially by the MOFNE, as the contacts established by MDTF-TS with new prospective donors have not proved effective. Additional efforts supported by the Govt. and the Netherlands (as Co-chair) should start before the 2 nd Sudan Consortium. Retroactive financing provisions are included in all MDTF Grant Agreements to help encourage project start-up activities with Government s own funds until the MDTF Grants are declared effective. MDTF-National Staffing Plan The status of staffing formdtf-n TS is presented in Annex 2 with the following key developments in the last four months: The Netherlands Secondee Joseph Hoenen joined the TS end of August. He will be responsible for the Three Areas Program among other functions. Additional support staff has been recruited: a Team Assistant, a Driver, and a Receptionist. Recruitment of an Executive Assistant is in progress. A Sr. Financial Management Specialist has been seconded by the Bank, and will arrive in October. A Sr. Procurement Specialist is being recruited to start in November. The Government Secondee is expected to be selected soon: MOFNE has sent a short-list of candidates to TS following an internal competitive process. A Young Professional/Junior Professional Associate is being identified to support MDTF monitoring and reporting work. DFID Secondee a Community Development Specialist, to be specifically in charge of CDF is being recruited and should join the TS in October/November, The EC Secondee for Education William Cerritelli will be based in Khartoum (effective Nov 1, 2006) though covering mainly the South. A new Bank Manager has been identified for the MDTF-S, based in Juba, thus allowing Shamima Khan to concentrate on fundraising activities for both MDTFs, as w ell as relations with civil society, donors, while overseeing communications and outreach functions.

5 The Co-Chair informed that, DFID will coordinate the deployment of donor secondees to the MDTF- TSs... The Bank/MDTF-TS assured that all staff members appointed to the MDTF-TS go through the same selection process as World Bank staff. Donors and/or governments are not expected to be involved in their recruitment.. Project Start-Up Facility A proposal for a Project Start-Up Facility administered by the WB was approved in principle at the OC-N meeting of April 19. However, the TS was unable to obtain approval for this proposal from the World Bank s Trust Fund Administration on account of potential conflict of interest. The government will advance its own funds for project start-up activities, to be reimbursed under retroactive financing provisions once the GA is effective and project is ready for implementation. MFTF Operational Manual A draft Operational Manual (OM) has been completed. The MDTF-N MA has been requested to review the OM and revise it so that it is compatible with MDTF monitoring requirements by the end of September, 2006 The OC.concluded that the OM help to streamline procedures in order to accelerate implementation and disbursements; and. The Government and donors should be consulted before the manual is finalized. WB/UN General Framework Agreement A meeting between the Bank and the UN took place in Washington DC on July 28, 2006, to address the issue of WB-UN co-operation. The conclusions of the meeting are summarized in Annex 3... Three GA/MOAs involving UN agencies have already been signed, namely: Census (MDTFs, involving UNFPA and UNOPS), SETIDP (MDTF-S, involving WFP), and Judiciary (MDTF-N, involving UNDP). Future agreements will be negotiated on a case by case using the above-mentioned general framework agreement and various agreements signed to date with UN agencies.. The OC concluded that the Bank inform both the Govt. and Donors on the follow-up discussions and the final agreement concerning the Bank/UN framework for cooperation under MDTFs. Three Areas Program In the last OC-N meeting on April 19, the Bank and the UN were tasked to jointly discuss and agree with the Govt. counterparts on the approach to support recovery and development programs in the Three Areas. Meetings were held with the State Governments in these states. The main findings are: Blue Nile State has prepared a comprehensive draft 5 year development plan. The state is also well covered by the EC-UNDP community fund and the CDF. The situation in South Kordofan is more complicated and not entirely clear: the draft 5-year development plan has not been approved by the State Cabinet and Legislative Authorities The MDTF-N projects already approved/effective (e.g. CDF, Health and National Transport) target the Three Areas. Total MDTF funds earmarked for the Three Areas in these projects amount to US$ 38 million.(out of total MDTF N project commitment of about $90 million) The Census, TAF and Judiciary projects also include activities for the Three Areas.. In addition, the UN Work Plan 2006 and 2007 support recovery activities in the Three Areas.. The planned MDTF-N support for the Three Areas will take into consideration, (i) the needs of the emerging state institutions, and (ii) the extremely low delivery and absorption capacity. Decision on

6 the project content, timeframe and implementation modality will be taken together with the local and the Federal Governmnet, keeping in mind the need for quick impact and visibility. For the next OC-N meeting: The MoFNE will present detailed information on the financial transfers from the Federal Government to the Three Areas jurisdictions; An overview of the proposed MDTF-N strategy and programs for Three Areas will be presented by MDTF-TS. Thematic Groups The Chair informed the OC that the Thematic Groups were formally created by a Ministerial Decree by MOFNE. The TORs for the thematic groups, however, need to be inclusive in both content and participation (Annex 4). To jumpstart the process, the OC recommended that initial work could start with thematic groups (preferably before the 2 nd Sudan Consortium) focused on Macroeconomic/Budget issues, Health, and the Three Areas. The OC concluded that The UN redistributeto OC members the list indicating the donor preferences for thematic groups. The MoFNE call a follow-up meeting including the UN and the Bank. The TG meetings should be held regularly and donors are expected to consider these a priority.. III The MDTF-N Portfolio The Monitoring Agent s 2 nd Quarterly Report was sent to MoFNE,UN, and the OC donors.. Project-specific recommendations were shared with each MDTF Project Coordinator. The Monitoring Agent made a presentation to the OC on its activities, and the main outcomes and constraints affecting MDTF-N during the 2 nd quarter 2006 (Annex 5). Though the overall performance is considered unsatisfactory, some project outcomes are positive (namely CDF), and there is a slow but steady improvement. The GA for the Judiciary Project was signed on August 23, 2006 by the Bank and UNDP, and co-signed by the MOFNE. The Bank and UNDP are in the process of declaring the Grant effective and transferring funds to UNDP for project execution. Project Proposals. (i) FPPs The FPP for the Decentralized Health System Development Project (DHSDP) was presented by Dr. Abdalla Sid Ahmed Osman, Under-Secretary of the FMoH (Annex 6). The DHSDP was approved by OC with the following recommendation: the M&E system should be put in place as soon as possible due to its importance for assessing results as well as a tool for learning. The TS was requested to include in the FPP a time schedule for implementing the M&E system. The FPP for the National Emergency Transport Project (NETREP) was presented by Mr. El- Tiraifi, Dafalla Secretary General /Advisor, Ministry of Transport, Roads & Bridges (Annex 7). The NETREP was approved by OC with the following recommendations: Considering that Sudan is coming out of a long period of internal conflict, the institutional capacity for road maintenance is weak or non-existent,nha should consider the possibility of including maintenance in the road rehabilitation/construction contracts, at least for the first few years.

7 Regarding Talogi-Kadugli road: the NETREP included only the study and design and not the physical construction. This being one of the feeder roads, its rehabilitation is part of an IFADsupported project and is being followed up by the Ministry of Agriculture. Effective coordination is needed between NHA and the Ministry of Agriculture.. Concerning the Kauda-Kadugli road, NHA should review and revise downward the scope of works and estimated costs for this road using the existing alignment (currently estimated at US$ 21 million), to ensure minimum all-weather accessibility..furthermore feasibility and detailed engineering studies are needed to (i) determine the optimal road alignment based on an evaluation of alternative routes including consultation with the state authorities and local communities (ii) assess the extent of areas that require de-mining given that this road corridor is heavily mined; and (iii) obtain more accurate and reliable construction cost estimates based on detailed engineering of the proposed improvements. Given that there are three semi-autonomous Government agencies (SRC, NHA, RTC) responsible for project implementation, consideration should be given to three separate GAs or an umbrella Grant Agreement with three subsidiary agreements... (ii) IPPs Dr. Ann Itto, State Minister, Ministry of Agriculture and Forestry presented the IPPs for Improving Agricultural Support Services and Support to Livestock Production The presentations are attached as Annexes 8and 9.. Both IPPs were approved with the following recommendations: Ministry should look into combining the two proposals into one project Additional technical comments would be provided by EC The IPP for Micro-Enterprise Development Project was presented by Mr. Mohamed Salih, Bank of Sudan (Annex 10). The IPP was not approved, but may be resubmitted taking into account the following recommendations: The project should focus mainly on micro-finance Capacity building activities in this sector should be done preferably through the TAF project. (iii) Other Project Ideas New Currency and the IMF Report. A presentation was made by Mr. Mohamed Bushra, Bank of Sudan (BOS) on the new currency. The OC recommended that a formal IPP be submitted taking into account the following observations: BOS needs to review and confirm the funding requirements for the new currency program and explore various options to finance the program. MDTFs can only be a small partner in the proposed $150 million program and other donor/domestic funding would have to be secured; MDTF-TS needs to review the figures in the IMF report and identify the urgent funding priorities suitable for MDTF support. Possible contribution from MDTF-S should be explored with GoSS; MDTF support for the new currency would be conditional to a review of MDTF priorities. The OC had previously agreed that focus of new MDTF activities should be the Three Areas and possibly the Water and Education sectors ; The new currency program could be considered as a special agenda item at the forthcoming 2 nd Sudan Consortium. Graduate Employment Fund Program: The proposal was rejected by the OC since it did not fall within the MDTF priorities. The OC suggested that the Government may wish to assess first the root causes of graduate unemployment and then develop programs to address this problem

8 IV Second Sudan Consortium A presentation was given by Ms. Shamima Khan, MDTF Manager (Annex 11). The OC suggested that WB and UN discuss further the contents of the SC as well as their respective roles; MOFNE discuss and agree on SC arrangements with relevant GONU/GOSS entities; Minister El Zubeir has assigned the Directorate of International Cooperation under State Minister Lual Deng in MOFNE to be the GONU coordinating body for the SC. V AOB MDTF/NGO Strategy, a brief overview was presented by Ms. Nada Amin, MDTF Communications Specialist on the NGO strategy. The OC requested that the paper be discussed at the next OC meeting Sector Policy Notes. At the next OC, the MDTF-TS will report on sector policy notes being prepared by the Bank with MDTF funding. The TS will also report to OC on the studies and training programs approved by the Technical Secretariat for TAF funding.

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