Multi Donor Trust Fund Southern Sudan Final Minutes of the Oversight Committee Meeting March 13, 2007

Transcription

1 Multi Donor Trust Fund Southern Sudan Final Minutes of the Oversight Committee Meeting March 13, The Oversight Committee for the MDTF-S met on March in Juba. HE Arthur Akuien Chol, (former) Minister of Finance and Economic Planning chaired the meeting, and Ms Liz Gaere, Head of the Joint Donor Team, co-chaired. Box below summarizes key decisions to improve MDTF implementation. Key Participants are listed in Annex 1. Box: Summary of decisions to improve MDTF implementation Making procurement work: Breaking procurement bottlenecks is important for delivering results on the ground with speed. There is need to make full and effective use of MoFEP s Procurement Agent by requiring the PA to at least double its staff immediately (there is provision in the contract), and clarify roles of various procurement staff and advisors in the line Ministries and MoFEP, and the PA consultant so that the entire procurement team starts to work as one cohesive team. Mechanism to break implementation problems: World Bank to regularly highlight to the Minister of Finance and Economic Planning key implementation issues that need to be escalated for resolution. For key issues, discussion in the Cabinet will also help. Ownership and confirmation of expected results/deliverables for 2007: MoFEP to send draft Results/Deliverables for 2007 to the Under Secretaries of concerned line Ministries for their review and confirmation, and build ownership with a clear mapping of mutual accountabilities (MDTF, GoSS, UN and others). MoFEP to establish a Forum of Project Managers (technical level) that should meet regularly to exchange good practices in implementation and work on actions to solve implementation problems. Resolving the issue of UN s proposal for a second window: The OC will be looking forward to GoSS s decision on how to proceed, following discussions within MoFEP, with the Economic Cluster of Ministers, consultation with donors and finally the decision by the Council of Ministers. Communication efforts: Concerted communication to show results and progress being made by GoSS to public, donors and development partners is important to maintain support for MDTF. At the same time, challenges in delivering results in a very difficult post-conflict environment of Southern Sudan, and how they are being addressed by GoSS and its partners should also be brought out. Agenda and Minutes 2. The minutes of the OC meeting on January 30, 2007 were approved, with the following comments: The OC noted with satisfaction that the Netherlands has now paid contributions for The remaining commitments from the EC will be paid in upon the 1

2 issuance of call for funds by the World Bank. A quick resolution of land registration of land for temporary offices for 19 commissions is required. Information on the mapping of health centers, schools and water points/boreholes should be shared regularly among the line Ministries in order to improve coordination for projects delivering basic services. UNICEF was requested to make the information on the health facilities and schools (to which supplies were distributed under RIEP) available to the Ministries of Health, Education and Cooperatives. The quality of reports prepared by the Monitoring Agent needs to be strengthened. A Technical Working Group will be set to look into this (see para 6, page 5). Status of Portfolio and Recommendations from the Conference in The Hague on Review of Post-Crisis MDTFs 3. Ishac Diwan presented an update of the Second Progress Report of the MDTF- S portfolio (Annex 2). The main highlights are: MDTF is playing a large role in reconstruction and development spending with $370 million in commitments (MDTF $152 million for 10 projects, and GoSS $217 million through pooled financing). MDTF pipeline in 2007 is about $200 million. Disbursements into pooled accounts have been large, and continued efforts are needed to move these funds on the ground. With a strong procurement pipeline, prospects for implementation look promising. Hard lessons have been learned in 2006 and strong actions have also been taken to respond effectively -- MDTF Technical Secretariat staffing has been increased from 2 to 13 (with a related increase in MDTF-TS running costs), World Bank s Board has approved a simplified policy for emergency situations, a higher level trouble shooting team has been established in Washington DC, initial difficulties with UN execution have been resolved, and draft matrices for results/deliverables have been developed. Going forward, key issues are to: -- reach agreement on results matrices with clear mapping of mutual accountabilities (MDTF, GoSS, UN and others), -- ensure realism and manage expectations better in the current context of Southern Sudan, and make concerted efforts to dispel misinformation about MDTF, 2

3 -- find ways to place key technical advisors in ministries, -- find ways through a Forum of Project Managers (technical level) to share implementation experience and learn from each other, -- find a mechanism to resolve implementation bottlenecks including escalating the most critical issues to the Council of Ministers by the Minister of Finance and Economic Planning, -- resolve the issue of an extra UN fund or UN window, -- find ways for better UN reporting within MDTF for UN executed projects and components to OC-S, -- make full and effective use of the newly installed Procurement Agent, and -- manage risks of under-financing by GoSS because of revenue shortfall and rising security and high payroll expenditures, limited government capacity, inadequate systems, and inadequate governance. 5. H.E. Dr. Luka Biong Deng, Minister, Office of the President, and Ms. Liz Gaere presented a summary of the findings and recommendations of the Study of post-conflict MDTFs and December 2006 Conference in the Hague (Annex 3). The main highlights are: MDTFs play an important role in public sector capacity building and promote donor harmonization. MDTF-S has had slow implementation because of its focus on capacity building, getting projects on budget and large size of big projects with ambitious project design. Effectiveness of OC-S has improved but there is need for stronger political leadership, realism in and better management of expectations, and for empowering civil society to play a stronger role. There are no general rules on the number and types of trust funds. Each situation is specific and solution must be crafted to the local environment. Going forward, key recommendations for MDTF-S are to: -- strengthen the OC for broad overall policy coordination role and oversight of all donor funds, -- give civil society a seat at the table, -- strengthen UN role in implementation, -- pay attention to stronger gender and conflict dimensions, -- revisit the proposal for a project preparation facility, and -- take steps to have stronger MDTF-S participation (GoSS, donors) in MDTF-N. 6. The discussion of these two presentations raised the following points: 3

4 Dr. Luka Biong Deng asked that MDTF-S start planning for extension at least up to 2011 because of huge development needs of Southern Sudan. The period is particularly critical for Southern Sudan. Ways also need to be found for better linkage of MDTF-S with the medium and long term planning of GoSS. Dr. Luka Biong Deng informed the OC that GoSS has received a proposal from the UN for a second window. He will formally write to MoFEP for discussion with the Economic Cluster of Ministers, GoSS will then seek views of donors and the World Bank, and the Economic Cluster of Ministers will make a recommendation on the proposal to the Council of Ministers. He expects GoSS to reach a decision within one month. He further added that the issue of one or two funds is for the Government of Southern Sudan to decide, and GoSS is keen to keep the arrangements simple and pull resources together. Pending GoSS review of the proposal, there was consensus in the OC that it is desirable to maintain one governance structure. OC members also emphasized the need to focus on tracking implementation progress of projects and project components executed by UN agencies, and regular reporting by UN on progress to the OC. The OC agreed MoFEP should establish and lead a Forum of Project Managers at a technical level to promote sharing of good practices of project implementation and work on actions to solve implementation problems. The Forum will also help ensure regular coordination and monitoring by MoFEP of the MDTF portfolio and take appropriate actions to accelerate implementation. The OC agreed to strengthen the role of GoSS and civil society in the OC by adding one member from each of the following GoSS Ministries/Commissions to the OC: (i) Ministry of Regional Cooperation, (ii) Ministry of Gender, Social Welfare and Religious Affairs, (iii) one line Ministry to be decided by GoSS (on a rotating basis), and (iv) the Southern Sudan Reconstruction and Development Fund (SSRDF). This should help ensure engagement of GoSS leadership in policy discussions at a high level. In addition, a way should be found to bring in civil society representation in OC given the importance of NGOs in implementation of programs in post-conflict settings and their institutional memory. On expansion of the role of OC to coordinate all donor funds including bilateral, the existing mechanism of quarterly meetings of donors with GoSS were considered adequate. The OC asked MDTF TS and MoFEP to set up a Technical Working Group to: (i) analyze the need for a Project Preparation Facility in MDTF to facilitate project preparation and improve implementation readiness (e.g., start of procurement before project is approved and/or effective), and develop options for the OC s review and decision, 4

5 (ii) review the role and responsibilities of the Monitoring Agent, and quality and usefulness of reporting, based on the experience to date, and recommend ways to strengthen the MA s work taking into account current capacity of the MDTF Technical Secretariat and the Procurement Agent in MoFEP. The technical working group will be chaired by MoFEP and comprise representatives from the JDT, EC, UN and MDTF TS. The OC should move away from regular monthly meetings to a system of holding them when needed, and the meetings should focus primarily on policies and providing strategic guidance. Procurement Agent 7. Mr. David Hepburn, Team Leader, Crown Agents described the role and responsibility of their work and provided an assessment of the situation based on their work to date (Annex 4). The main highlights are: Two different sets of procurement regulations, one for MDTF (pooled accounts) and other for GoSS-funded procurement. The GoSS procurement is being done much less systematically, which increases fiduciary risks. Part of the problem arises because GoSS does not yet have a Procurement Law. A few of the Ministries have Procurement Advisors financed by the LICUS Trust Fund (MoFEP), MDTF (e.g., Education, Roads and Transport), USAID, and other sources. There is need to clarify the roles of various procurement advisors and procurement staff in the Ministries, including for MDTF projects, and of the Procurement Agent, so Crown Agents can fulfill their executive and transactional role with regard to the procurement function. The organizational structure for the Transitional Procurement Units in the Ministries needs to be authorized and promulgated by MoFEP as a matter of priority in order to eliminate the haphazard approach that currently exists. The MoFEP wishes to enforce compliance by Ministries and Agencies with the Interim Public Procurement Regulations, which have yet not been distributed. 8. The OC agreed to the following actions: The MoFEP should immediately send a Circular to the line Ministries to clarify the executive and transactional role of the Crown Agents for all procurement, including procurement under MDTF projects, and that Crown Agents are working for GoSS, as well as to send a clear message that the MoFEP is serious about managing fiduciary risks. 5

6 The MoFEP should ask the Crown Agents to immediately at least double its staff in Juba to solve the problem of procurement backlog in MDTF projects as a key action to accelerate project implementation. There is provision for extra staff time in the contract which should be utilized now to clear the backlog of procurement, particularly for MDTF projects. The Public Procurement Unit in MoFEP should prioritize the work of Crown Agents on a regular basis to ensure that there are no delays in procurement for the most important activities in MDTF projects. The Unit also needs to take steps to make full and effective use of their services, in order to help remove the most critical impediment to speedy implementation of MDTF projects. In addition, immediate actions are needed to ensure that various procurement advisors in MoFEP and procurement staff in the line Ministries are integrated with the GoSS Procurement Agent s team to ensure that they all work as a cohesive team for the single purpose of expediting procurement speed. MoFEP should provide monthly reports prepared by the Crown Agents to the OC. GoSS Prioritization of the 2007 Pipeline 9. Mr. Aggrey Tisa Sabuni presented MoFEP s proposed prioritization of the pipeline for 2007 and beyond, based on current commitments for (Annex 5). The highlights of the assumptions and main results are the following: Priority to already approved projects, and phase 2 and extensions of ongoing projects over projects not yet approved. Priority to phase 2 of Census and SETIDP (urban infrastructure in the States capitals) over Education and Health. PSD is to proceed but other new projects to be deferred to the first quarter of There is a large gap for financing subsequent phases of all existing and approved projects. 10. The OC accepted MoFEP s prioritization as a starting framework that can be developed with the help of MDTF TS. The main points that emerged from the OC discussion are: Analysis of the pipeline should take into account availability of GoSS budget and cash flow situation (counterpart funds) for both ongoing and pipeline projects and implications for cost sharing. 6

7 Important projects that are ready to be signed and have already been fully prepared should not be delayed. However, discussion on the proposed FPP for Agriculture & Forestry would be initiated in the light of MoFEP s priorities and available financing. Phase 2 and 3 of ongoing projects should be synchronized to take into account new developments and recent implementation experience. We should be proactive in revisiting the approaches and project designs to respond to GoSS priorities and recent experience. In SETIDP, urban infrastructure in the State capitals is priority for MDTF given substantial commitments from USAID to support roads ($750 million over a number of years). The education project needs an update to discuss how deliverables can be increased in Ms. Emily Oldmeadow (EC) will soon circulate a paper on the sectoral perspective. A road show to donor capitals can help communicate the need for realism in expectations in the difficult post-conflict situation of Southern Sudan, and achievements to date and GoSS efforts to break bottlenecks Results Matrix 11. The OC expressed satisfaction with the table on expected high level Results and Deliverables for 2007 (Annex 6), and the MDTF Running Update for January-February 2007 (circulated to the OC on March 12, 2007). Since GoSS has the responsibility for implementation of MDTF projects, Mr. Aggrey Tisa Sabuni undertook to send the draft Results/Deliverables for 2007 to the Under Secretaries of concerned line Ministries for their review and confirmation, and build ownership. MDTF Staffing 12. Surendra Agarwal informed the OC on current staffing of MDTF TS. The staff strength is now 13 higher level staff covering procurement, financial management, and every sector except agriculture and rural development. Two staff to cover rural development are under recruitment and should be in place in May He added that a substantially strengthened MDTF staffing combined with the operational cost of the new office space (currently under completion) means Technical Secretariat running costs will be high in 2007, at about $7.1 million. New Projects IPP for Scaling Up the National Response to HIV/AIDS 13. Dr. Gordon Angok Kuol presented the IPP. The proposed project cost is high ($36.8 million -- $20.9 million from GoSS and $15.9 million from MDTF). The OC made the following main points on the IPP: 7

8 An important project in a difficult area. Changing the implementation period from 3 to 5 years is the right approach. With large donor funding available from various sources for HIV/AIDS and other diseases, in particular from GFATM ($28.4 million in round 4 for 5 years), and more recently a new approval of GFATM funding of $27 million in round 5, the focus of the project should be on selected complementary activities that will help increase capacity for absorbing the already available funding. The project design should recognize that capacity building is a process and will take time. The proposed project design is ambitious because of very limited capacity at the State and county levels to absorb funding. Further preparation of the project needs to be more realistic and coordinated with other support. Efforts under the proposed project should be targeted to areas of high vulnerability, and where opportunities for impact are high and complementary to other programs and projects supporting HIV/AIDS. The project should not spread itself too thin. 14. The OC decided the following: Endorsed that further project preparation should proceed taking into account the OC comments. Asked the OC members to submit additional written comments on the IPP to MDTF Technical Secretariat for sharing with SSAC. 15. Other new projects. The OC is looking forward to receive FPPs for Private Sector Development, National New Currency, and Agriculture and Forestry Development projects. 8