This action is funded by the European Union

EN This action is funded by the European Union ANNEX 2 on the Commission Decision on the Annual Action Programme 2016 in favour of the Republic of Ghana to be financed from the 11 th European Development Fund Action Document for the Support to the Office of the National Authorising Officer 1. Title/basic act/ CRIS number 2. Zone benefiting from the action/ location 3. Programming document 4. Sector of concentration/ thematic area 5. Amount concerned 6. Aid modality and implementation modality Support to the Office of the National Authorising Officer (NAO Support) CRIS number: GH/FED/039-065 financed under the 11 th European Development Fund Ghana, West Africa National Indicative Programme 2014 2020 for Ghana Accompanying measures DEV. Aid: YES Total estimated cost: EUR 1 500 000 Total amount of EDF contribution: EUR1 500 000 Project Modality Indirect management with Republic of Ghana 7 a) DAC code(s) 99810 (0.46% of the NIP) b) Main Delivery Channel 8. Markers (from CRIS DAC form) 9. Global Public Goods and Challenges (GPGC) thematic flagships Public Sector Institutions- 10000 General policy objective Not targeted Significant objective Main objective Participation development/good x governance Aid to environment x Gender equality (including Women x In Development) Trade Development x Reproductive, Maternal, New born x and child health RIO Convention markers Not Significant Main targeted objective objective Biological diversity x Combat desertification x Climate change mitigation x Climate change adaptation x N/A 1

SUMMARY The programme s overall objective is to contribute to the increased relevance and impact of EU Development Cooperation on poverty reduction in Ghana. The specific objective is to improve the efficiency and effectiveness of Government of Ghana EU Development Cooperation in line with the division of responsibilities as outlined in the ACP-EU Partnership Agreement. The programme has 4 inter-linked and mutually supportive key result areas: Result Area No. 1 Administrative and technical capacities of the Office of NAO are enhanced to implement all 11 th EDF funded programmes adequatedly applying European Commission rules and regulations. Result Area No. 2 - Pro-active coordination and support to government institutions in the identification and implementation of EU external assistance is improved. Result Area No. 3 A dedicated monitoring framework for EU-Ghana development cooperation is implemented. Result Area No. 4 - Visibility and awareness raising on the EU-Ghana development cooperation is increased. Short-term to medium-term technical assistance (TA) will be contracted to provide back-stopping support. The programme will be managed by the Office of the NAO and a Supervisory Committee will be established to oversee the implementation of the programme. 2

1 CONTEXT 1.1 Sector/Country/Regional context/thematic area Ghana became one of the fastest growing economies in the world, following a rebasement of the economy in 2011. The Ghanaian domestic economy in 2012 revolved around services which accounted for 50% of gross domestic product (GDP) and employed 28% of the workforce. Besides industrialisation associated with minerals and oil, industrial development in Ghana remains basic. Although Ghana registered relatively commendable economic growth in 2014, the economy faced major challenges in the form of sharp currency depreciation, deepening energy crisis, deteriorating macroeconomic imbalances, and rising inflation and interest rates. Over the medium term, the economy is projected to recover, bolstered mainly by higher oil and gas production, combined with increased private sector and public infrastructure investments, as well as an improved macroeconomic framework and political stability. Ghana s accelerated economic growth over the past decade has helped the country to achieve the MDG goals of halving poverty, although there is evidence of growing disparities in social and economic inequality across regions, especially in the three northern and central regions. To address the increasingly unsustainable fiscal and current account imbalances, the Ghanaian authorities have been implementing a stabilisation programme with the International Monetary Fund (IMF) since early 2015. Even though Ghana has achieved impressive progress over the last decade in reducing poverty and food insecurity, inequality among several fringes of the population remains a challenge. Disparities among the regions (northern vs.southern regions, rural vs urban, etc.) are compounded by low levels of employment in the formal sector, poor delivery of basic services to communities in water, sanitation and hygiene education (WASH), health, social protection. Ghana s institutional capacity requires continued enhancement in order to ensure the delivery of essential public services. The low institutional capacity and the inequalities are major constraints for a sustainable development of the country. The need for improved institutional capacities and qualified human resources for programme planning, implementation, monitoring, evaluation is essential at all levels of the administration. 1.1.1 Public Policy Assessment and EU Policy Framework The Government of Ghana aims at transforming its economy and society by improving its institutional capacity and management; developing and expanding further the existing infrastructure; providing an enabling environment for business; continue supporting required social interventions and reinforcing public safety nets to ensure that this development process is broad and inclusive. The objective of these transformations is to improve climate of business, attracting investors and promote trade. Within this context and Ghana s attainment of the lower middle income status in 2010, the Ghana Shared Growth and Development Agenda (GSGDA) II has been prepared for implementation over the period 2014 2017. The strategy has four main pillars: Pillar One - "putting people first" which covers the thematic area of Human Development, as well as Productivity and Employment; Pillar Two - "A strong resilient economy" which covers the thematic areas of ensuring and sustaining macroeconomic stability; Pillar Three - "Expanding infrastructure"; Pillar Four - "Transparent and Accountable Governance" inter alia deepening democracy and institutional reforms, public sector reforms, rule of law and access to justice. Ghana is an important economic partner for the EU, providing investment opportunities as well as being a significant trading partner for the European private sector. EU development cooperation with Ghana is framed by principles and objectives laid out in the EU s development policy, the "Agenda for Change". The Agenda for Change identifies good governance, a rights-based approach to development, sustainable economic growth, social inclusiveness, climate change mitigation and the role of civil society and private sector as key factors determining the success of development EU cooperation. 3

The EU, as a major partner for Ghana, has a strong interest in supporting and encouraging the country's efforts to achieve sustainable and inclusive growth, create decent jobs and ensure that economic growth will benefit the whole population. Even though Ghana is considered as model in Africa for its civil society organisations (CSOs), the need to promote a comprehensive and fruitful dialogue, and ensuring improved governance, remains an important part of the EU's strategy. In the light of the above, the EU and EU Member States have signed a joint programming document covering the period 2013-2016 which brings together the main aspects of the ongoing bilateral programmes of each Member State. The EU s contribution to joint programming is in line with the sectors of intervention selected in the 11 th EDF National Indicative Programme (NIP) 2014-2020 i.e. (1) Governance: public sector management and accountability; (2) Productive investments for agriculture in the savannah ecological zones; (3) Employment and social protection. The Ghana NIP was built on the Ghana Compact 2012-2022 under the theme: "leveraging partnerships for shared growth and development" and is consistent with the aid effectiveness principles. 1.1.2 Stakeholder analysis The formulation process of this programme took into consideration the conclusions of extensive consultations with the staff of the Office of the NAO and the beneficiairy recipient entities implementing EU-funded actions. The main stakeholders are the entities concerned by EU-Ghana development cooperation under the EDF, more specifically, the staff of the NAO, other divisions of the Ministry of Finance, Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs), the EU Delegation and EU Member States, other Development Partners (World Bank, UN agencies, ), ECOWAS (Economic Community Of West African States) and other concerned regional organisations, citizens of Ghana, comprising CSOs, non-state actors (NSAs), including private sector and media. The final beneficiaries of the present action are the people of Ghana. The main target group will be the office of NAO and other key governmental institutions benefitting from EU support in the areas of policy/strategy formulation and implementation. The second target group will be constituted of all the entities implementing EU cooperation programmes namely MDAs, MMDAs, EU Member States cooperation agencies, CSOs and NSAs. It is expected that these stakeholders may benefit from conferences, seminars and workshops on key policy/issues related to development, trade and cross-cutting themes, training on EU-ACP cooperation procedures and principles, as well as policy formulation and initiatives. 1.1.3 Priority areas for support/problem analysis Implementation of the current Ghana NIP under the 11 th EDF has demonstrated that the NAO s Office needs capacity strengthening to fully assume its responsibilities and to perform its duties as laid down in Article 35 of the Cotonou Agreement. In addition, the 11 th EDF has shown profound changes in the delivery of the aid through new strategic notes (e.g. Agenda for Change), leading to the implementation of innovative methodologies to implement the programmes. The smooth implementation of on-going programmes (10 th and 11 th EDF) has been hampered by internal factors, namely inadequate logistics, insufficient coordination with the line Ministries, and limited possibilities for the staff of NAO to conduct monitoring and evaluation activities. These factors, among others, have contributed to a situation where the outputs expected from the NAO s Office according to Article 35 in the Cotonou Agreement are not always delivered in an effective and timely manner. However, the ACP-EU Unit presents some strengths in terms of team spirit, the loyalty towards their institution, and stakeholder-minded orientation. The ACP-EU Unit s task is to assist the NAO in Ghana in the implementation of the Cotonou Agreement. That means that the Unit should perform tasks within the framework of the five following functions which are to: i) determine the priority in policy decisions (identification of the sectors of concentration of the assistance, support line ministries in the programming exercise, general review and monitoring progress of the development cooperation); ii) oversee the management of the programmes and the projects; iii) monitor the programmes; iv) coordinate with the technical ministries, other State agencies and all the implementing entities; and v) Foster the dissemination of 4

the EU's values and cross-cutting issues (gender, climate and right-based approach) among the CSOs and NSAs. 2 RISKS AND ASSUMPTIONS Risks Technical assistance is not delivering the expected results Risk level (H/M/L) Low Mitigating measures Appraisal of TA will be regular and continuous based on monitoring of the performance and results clearly listed in the reports. High staff turn-over in ACP-EU Unit Medium Regular discussions will be organised with MoF management to retain staff levels and avoid disruptions in implementation processes. Limited capacity of the NAO's office to implement EDF procedures (procurement, management of new types of contract PAGODA, blending, public private partnership, etc.) Lack of understanding at the top management of the Ministry of Finance (MoF) regarding functions and tasks for EU contract management (direct or indirect management modes) The context of development aid (policy implementation and programme development) is changing due to the slower pace of domestic growth and social instability Medium Medium Medium Training sessions and assistance to the programme staff will be performed to reach as many qualified staff as possible through MoF and other line ministries and implementing entities. Inclusive dialogue will be encouraged throughout the MoF to ensure good understanding and ownership of the results. EU's external assistance will assist the Government to mitigate the effects of reduced economic growth. Assumptions EU Government of Ghana cooperation fully aligned with Government's development plan. NAO and EU Delegation continue to ensure that the needs to be addressed are in line with the implementation of any actions under the 11 th EDF. In this respect, the NAO and EU Delegation will continue to closely monitor the use of project funds and will hold regular coordination meetings. Government of Ghana is committed to being transparent and accountable regarding the management of EU's financial support. NAO staff and other stakeholders are willing to undertake training and capacity-building exercises in the interest of the entity they are serving. 3 LESSONS LEARNT, COMPLEMENTARITY AND CROSS-CUTTING ISSUES 3.1 Lessons learnt There is a general recognition that the NAO s Office would require further support to fully assume its responsibilities and to perform its duties as laid down in the Cotonou Agreement. The previous NAO supports laid the foundation for activities that have, to an extent, improved the performance of the NAO s office. More specifically, the Technical Cooperation Facility III (TCF III), under which support was provided to the NAO under the 10 th EDF, provided the means for ensuring adequate support in the identification and formulation of interventions as well as more specific support to the office of NAO. This was done through the engagement of short and medium-term consultants, support for training and the organisation of conferences, seminars and publications. The specific support to the office of NAO supported the participation of officials in meetings, events, training, staff exchange, etc. The TCF III demonstrated its usefulness as a key instrument in the partnership between EU and Ghana. The lessons learnt from these supports showed that capacity building for staff as well as ad 5

hoc technical assistance services contributed to ensure smooth planning, preparation and implementation of development projects and programmes. Notwithstanding these achievements, significant challenges still remain including inadequate interinstitutional coordination, insufficient technical and administrative capacity, weak dialogue with civil society and absence of visibility strategy as required by current EU Communication and Visibility Policy. Implementation and monitoring issues, such as the amount of inelegibles costs reported by audits on some programmes (e.g. GIFMIS (Ghana Integrated Financial Management Information System)), delays in the implementation of works contracts due to inadequate monitoring (Western Corridor), longer than expected termination of service contracts that the supplier failed to honour (BAM, TRAQUE), inter alia, will have to be corrected with the present action. It is also worth stressing that capacity development in EU procedures and development cooperation is a continuous process as evidenced by regular updates in EU Policy and Regulations. The NAO s counterparts in the EU Delegation are able to keep up with the regular updates in EU Policy and Regulations by benefiting from the EU s Methodology and Knowledge Sharing programme which provides methodological support, training on operational aspects and innovative developments activities. The NAO on the other hand does not have any similar structured support to be able to adequately manage or supervise the EDF programmes. To identify the extent to which the NAO s Office is not able to meet its mission as outlined in the Cotonou Agreement, an independent analysis was conducted to identify gaps and challenges to be addressed. One of the key conclusions of the independent analysis was that the present institutional set-up of the NAO has to be maintained within the Ministry of Finance albeit with specific operational improvements, in order to avoid any possible disruption to EU-Ghana Cooperation in terms of EDF implementation. Another main finding of the analysis was the need to improve monitoring and evaluation systems for EU-funded projects in Ghana. The analysis calls for reinforcement of internal monitoring and evaluation tools. The analysis also stressed the need to formulate a comprehensive capacity development programme for the NAO s staff based on a training needs assessment so as to be in tune with the changing global environment within the context of Ghana EU development cooperation With regards to EU-funded regional programmes, the analysis recommended that future actions should engage NAO to take a proactive role in the implementation of such programmes, as highlighted in the Regional Indicative Programme (RIP) of the 11 th EDF. Finally, regarding trade development, this NAO support programme will also support the Ministry of Trade and Industry (MOTI) for the identification/formulation of the regional programme which will be the main instrument to support Trade. 3.2 Complementarity, synergy and donor coordination Several complementary initiatives will ensure that this action is appropriately supported and that its results are fully leveraged and rendered sustainable: i) with regards to technical and policy dialogue, the NAO would be guided by the meetings of the Government of Ghana - Development Partners, which is the high level coordination mechanism for Government of Ghana and Development Partners; ii) The ongoing work that the Government of Ghana (National Development Planning Commission and Ministry of Finance) and Development Partners to conclude the new Development Cooperation Policy and Strategy 2016-2020, reflecting the different approach proposed in the frame of the Sustainable Development Goals Agenda 2030 and the Financing for Development. iii) the technical assistance support provided to MDAs and MMDAs under the various EDF programmes will complement capacity building efforts under the present action; iv) The EU's Techincal Cooperation Facility IV would be used to support more specifically the diagnostic and feasibility studies, formulation and evaluation of projects. 6

3.3 Cross-cutting issues Cross-cutting issues (gender, human rights and environmental issues) are taken into account and targeted throughout the programmes under each of the NIP focal sectors. Through this support programme, the office of NAO will work towards the integration and monitoring of these issues in EU-Ghana development cooperation.. 4 DESCRIPTION OF THE ACTION 4.1 Objectives/results This programme is relevant for the Agenda 2030. It contributes primarily to the progressive achievement of SDG target 17 on Partnerships for sustainable development but also indirectly promotes progress towards several Goals including Goal 1 (no poverty); Goal 2 (zero hunger); Goal 5 (gender equality); Goal 8 (Decent work and economic growth); Goal 10 (Reduced inequalities) Goal 13 (Climate action). This does not imply a commitment by the country benefiting from this programme. The overall objective of the present action is to contribute to growth and poverty reduction in Ghana (as outlined in the Ghana Shared Growth and Development Agenda II), through the effective delivery of EU development cooperation. The specific objective of the present action is to build the capacity of the Office of the National Authorising Officer (NAO) to manage EU-funded bilateral projects and programmes and ensure their effective and efficient implementation. The action will be aligned to the principles of the Paris Declaration, the Accra Agenda and the Busan Partnership and implemented according to the principles laid down in the Cotonou Agreement. In view of achieving the overall and specific objectives, four inter-linked Result Areas (RA) are defined: Result Area No. 1 Administrative and technical capacities of the Office of NAO are enhanced to implement all 11 th EDF funded programmes adequatedly applying European Commission rules and regulations. Result Area No. 2 Pro-active coordination and support to Government institutions in the identification and implementation of EU external assistance is improved. Result Area No. 3 A dedicated monitoring framework for EU-Ghana development cooperation is implemented. Result Area No.4 Visibility and awareness raising on the EU-Ghana development cooperation is increased. 4.2 Main activities The main activities by result areas are the following: Result Area No. 1 Administrative and technical capacities of the Office of NAO are enhanced to implement all 11 th EDF funded programmes adequatedly applying European Commission rules and regulations. A.1.2.1 Procurement of new IT tools (programming, administration, finance) A.1.2.1. Logistical supports for office facilities: printers, computers, photocopiers, vehicles A.1.2.2. New book-keeping record system put in place A.1.2.3. In-house Technical Assistance Support Result Area No. 2 Pro-active coordination and support to Government institutions in the identification and implementation of EU external assistance is improved. With the beneficiary entities (Government, agencies and other beneficiaries) A.2.1.1.Improved coordination with the MDAs (design, implementation of programmes) A.2.1.2. Relevant coordination with all the beneficiary entities under 11 th EDF (delegated cooperation partners, CSOs) 7

A.2.2.Within the Ministry and the NAO office A.2.2.1. Improved awareness of the role of the NAO within MoF hierarchy through organisation of regular events A.2.3. With the EU Delegation A.2.3.1.Pro-active role of NAO in the relationships between EU Delegation and the beneficiary entities A.2.3.2. Pro-active role in dealing with Regional Programming Result Area No. 3 A dedicated monitoring framework for EU-Ghana development cooperation is implemented. A.3.1. Functional M&E unit (staff, working plan, result-based) A.3.2.All EU funded programmes duly monitored and lessons learned captured. A.3.3. Specific functional system for monitoring EU-Ghana development cooperation at glance A.3.4. Release of regular M&E briefs or strategic notes. Result Area No.4 Visibility and awareness raising on the EU-Ghana development cooperation is increased. A.4.1. EU's visibility / communication plan defined for the specific functions of the NAO A.4.2. Publication of a regular quarterly information bulletin on ACP-EU activities 4.3 Intervention logic Currently, there are ten operational staff in the NAO s office including auxiliary staff and a contiguous office space provided under the previous NAO support programme. Apart from one accountant who was recruited as service contractor to provide technical support to the Contract and Finance section, the rest of the staff are civil servants most of whom have been working in the NAO s Office for at least six years with wide range of experience in the management of development cooperation. The current programme is designed to improve the efficiency and effectiveness of the NAO s Office to enable it play its role as enshrined in Article 35 of Annex IV of the Cotonou Agreement. The Office of NAO intends to become one of the best example in the sub-region through adoption of best practices in the management of the EU's resources. To this end, support through the current action will be sequenced as follow: - At the start of the present action, the Key Area No.1 will aim at developing the capacities of the staff of NAO to undertake all the duties pertaining in the Cotonou Agreement and applicable to the 11 th EDF. - Then, the Key Area No.2 will enable the NAO to provide the necessary backstopping and advisory functions needed for the implementation of EU funded programmes. - Key Area No.3 will specifically target the monitoring and evaluation capacities of the NAO to build lessons learned and best practices with regard to EU development assistance. - Key Area No.4 will ensure smooth visibility of the various achievements made through the programmes when deemed necessary. In this regard, the NAO s Office will serve as an interface between the EU and the other Ministries, Department and Agencies (MDAs) in the management and implementation of EU programmes. It is therefore crucial that the Office plays its coordination role effectively. Thus, the NAO Support Programme will implement activities that will lead to improvement in internal organisation and the coordination function not only within the NAO s Office itself and the Ministry of Finance but also more especially with the EU Delegation in Ghana and the MDAs, as well as other stakeholders, including EU Member States cooperation agencies, CSOs and the private operators involved in the implementation of the EU programmes and projects. In addition, the programme will implement activities to improve information-sharing between the EU Delegation and the NAO s Office to be abreast of changes in EU procedures. The changes in the EU guidelines, regulations and procedures place additional responsibility on the NAO staff to continually and adequately brief and inform Management of the Ministry. In this regard, there there is a real need to improve the awareness of the NAO s Office within the Ministry of Finance hierarchy. A better 8

understanding of EU regulations by Management of the Ministry of Finance will also ensure speedy approval of EU related activities and documents. Furthermore, the NAO s Office will be supported with logistics to enable it carry out its monitoring activities. It is expected that the congenial working environment that will be created by the programme will motivate the staff to continue to exhibit positive attitude and be more pro-active in the discharge of their duties as they derive job satisfaction from their work. The combined effect of this will be that there will be high productivity leading to a realisation of the objectives of the programme. In addition, the NAO Support Programme is expected to provide support to the identification and formulation of the regional programming as well as assisting the relevant beneficiary institutions regarding the management of the programmes funded under the 11 th RIP. 5 IMPLEMENTATION 5.1 Financing Agreement In order to implement this action, it is foreseen to conclude a financing agreement with the partner country, referred to in Article 17 of Annex IV to the ACP-EU Partnership Agreement. 5.2 Indicative implementation period The indicative operational implementation period of this action, during which the activities described in section 4.2 will be carried out and the corresponding contracts and agreements implemented is 60 months from the date of entry into force of the Financing Agreement. Extensions of the implementation period may be agreed by the Commission s Authorising Officer responsible by amending this decision and the relevant contracts and agreements; such amendments to this decision constitute non-substantial amendment in the sense of Article 9(4) of the Annex to Regulation (EU) 2015/322. 5.3 Implementation of the budget support component N/A 5.4 Implementation modalities 5.4.1 Indirect Management with the partner country This action with the objective to "contribute to efficient and effective programming and implementation of EU-funded projects and programmes under the 11 th EDF" may be implemented in indirect management with the Republic of Ghana in accordance with Article 58(1)(c) of the Regulation (EU, Euratom) No 966/2012 EDF applicable in accordance with Article 17 of Regulation (EU) 2015/323 according to the following modalities: The NAO will act as the contracting authority for the procurement and grant procedures. The Commission will control ex ante all the procurement procedures except in cases where programme estimates are applied, under which the Commission applies ex ante control for procurement contracts above EUR 20 000 and may apply ex post control for procurement contracts up to that threshold. The Commission will control ex ante the grant procedures for all grant contracts. Payments are executed by the Commission except in cases where programmes estimates are applied, under which payments are executed by the partner country for ordinary operating costs, direct labour and contracts below EUR 300,000 for procurement and up to EUR 100 000 for grants. The financial contribution covers, for an amount of EUR 420 000, the ordinary operating costs incurred under the programme estimates. In accordance with Article 190(2)(b) of Regulation (EU, Euratom) No 966/2012 and Article 262(3) of Delegated Regulation (EU) No 1268/2012 applicable in accordance with Article 36 of Regulation (EU) 2015/323 and Article 19c(1) of Annex IV to the ACP-EU Partnership Agreement, the partner country shall apply procurement rules of Chapter 3 of Title IV of Part Two of Regulation (EU, Euratom) No 966/2012. These rules, as well as rules on grant procedures in accordance with Article 9

193 of Regulation (EU, Euratom) No 966/2012 applicable in accordance with Article 17 of Regulation (EU) 2015/323, will be laid down in the financing agreement concluded with the partner country 5.5 Scope of geographical eligibility for procurement and grants The geographical eligibility in terms of place of establishment for participating in procurement and grant award procedures and in terms of origin of supplies purchased as established in the basic act and set out in the relevant contractual documents shall apply. The Commission s authorising officer responsible may extend the geographical eligibility in accordance with Article 22(1)(b) of Annex IV to the ACP-EU Partnership Agreement on the basis of urgency or of unavailability of products and services in the markets of the countries concerned, or in other duly substantiated cases where the eligibility rules would make the realisation of this action impossible or exceedingly difficult. 5.6 Indicative budget EU contribution Activities (in EUR) 5.4.1 Indirect management with the partner country 1 220 000 RA.1: Administrative and technical capacities of the Office of NAO are enhanced to implement all 11 th EDF funded programmes adequatedly applying European Commission rules and regulations RA.2: Pro-active coordination and support to Government institutions in the identification and implementation of EU external assistance is improved RA.3: A dedicated monitoring framework for EU-Ghana development cooperation is implemented RA.4: Visibility and awareness raising on the EU-Ghana development cooperation is increased 500 000 300 000 270 000 150 000 5.9 Evaluation 50 000 5.10 Audit 70 000 5.11 Communication and visibility 60 000 Contingencies 100 000 Total 1 500 000 5.7 Organisational set-up and responsibilities The office of the NAO and the EU Delegation will agree on regular meetings with the aim to monitor and discuss the overall project implementation and performance. In particular, the NAO and the EU Delegation will ensure compatibility and mutual effectiveness of activities between the four Result Areas, approving activity plans and monitoring the Programme Estimates. This will be ensured by a Steering Committee which will meet every quarter (may be changed according to the situation) made up of the following members: - Head of the ACP-EU Unit, Ministry of Finance - Imprest Administrator, Office of NAO - Imprest Accounting Officer, Office of NAO - Head of Cooperation, EU Delegation (observer status) - Head of the Multilateral Division representing the National Authorising Officer, Ministry of Finance. 10

The NAO and EU Delegation will appoint focal-points who will be responsible for the day-to-day management and coordinate where necessary. 5.8 Performance monitoring and reporting The day-to-day technical and financial monitoring of the implementation of this action will be a continuous process as part of the beneficiary responsibilities. To this aim, the NAO shall continue to use the internal, technical and financial monitoring system for the action, which will used to elaborate regular progress reports (not less than annual) and final reports. Every report shall provide an accurate account of implementation of the action, difficulties encountered, changes introduced, as well as the degree of achievement of its results (outputs and direct outcomes) as measured by corresponding indicators, using as reference the log frame matrix. The report shall be laid out in such a way as to allow monitoring of the means envisaged and employed and of the budget details for the action. The final report, narrative and financial, will cover the entire period of the action implementation. The Commission may undertake additional project monitoring visits both through its own staff and through independent consultants recruited directly by the Commission for independent monitoring reviews (or recruited by the responsible agent contracted by the Commission for implementing such reviews). 5.9 Evaluation Having regard to the nature of the action, a mid-term and a final evaluation will be carried out via independent consultants contracted by the Commission. A mid-term evaluation will be carried out for problem solving in particular with respect to the following result areas: Capacity-building component and monitoring framework, but without excluding the other result areas. A final evaluation will be carried out for accountability and learning purposes at various levels taking into account in particular the fact that lessons learned must be captured in an independent and comprehensive manner to better define what could be the future modalities for delivering enhanced EU's development cooperation. The Commission shall inform the implementing partner at least 1 month in advance of the dates foreseen for the evaluation missions. The implementing partner shall collaborate efficiently and effectively with the evaluation experts, and inter alia provide them with all necessary information and documentation, as well as access to the project premises and activities. The evaluation reports shall be shared with the partner country and other key stakeholders. The implementing partner and the Commission shall analyse the conclusions and recommendations of the evaluations and, where appropriate, in agreement with the partner country, jointly decide on the follow-up actions to be taken and any adjustments necessary, including, if indicated, the reorientation of the project. Indicatively, two contracts for evaluation services shall be concluded under a framework contract in the first quarter of 2019 5.10 Audit Without prejudice to the obligations applicable to contracts concluded for the implementation of this action, the Commission may, on the basis of a risk assessment, contract independent audits or expenditure verification assignments for one or several contracts or agreements. Indicatively, 4 contracts for audit services shall be concluded under a framework contract; the first service contract should be launched in the first quarter of 2018. 5.11 Communication and visibility Communication and visibility of the EU is a legal obligation for all external actions funded by the EU. This action shall contain communication and visibility measures which shall be based on a specific Communication and Visibility Plan of the Action, to be elaborated at the start of implementation and supported with the budget indicated in section 5.6 above. 11

In terms of legal obligations on communication and visibility, the measures shall be implemented by the Commission, the partner country, contractors, grant beneficiaries and/or entrusted entities. Appropriate contractual obligations shall be included in, respectively, the financing agreement, procurement and grant contracts, and delegation agreements. The Communication and Visibility Manual for European Union External Action shall be used to establish the Communication and Visibility Plan of the Action and the appropriate contractual obligations. The implementation for visibility/communication activities will be carried out under two service contracts through the indirect management modality. No more than two service contracts worth EUR 30 000 each will be launched. The first service contract will be launched in the first semester of year 2 of implementation; the second service contract will be launched in the second trimester of year 3 of implementation. 12

APPENDIX INDICATIVE LOGFRAME MATRIX The inputs, the expected direct and induced outputs and all the indicators, targets and baselines included in the list of result indicators are indicative and may be updated during the implementation of the action without an amendment to the financing decision. The table with the indicative list of result indicators will evolve during the lifetime of the action: new columns will be added for intermediary targets (milestones), when it is relevant and for reporting purpose on the achievement of results as measured by indicators. Note also that indicators should be disaggregated by sex whenever relevant. Result Area No. 1 Administrative and technical capacities of the Office of NAO are enhanced to implement all 11 th EDF funded programmes adequatedly applying EC rules and regulations.. Activities A.1. 1.General functions: A.1.1.1. Improved pro-activeness with monthly working plans A.1.1.2. Improved staffing issues through regular management meetings A.1.1.3. Implement relevant training plans for career development including those identified in the Training Needs Analysis (under TCF III) A.1.1.4 Regular updates of EU procedures and regulations A.1.2.1 Specific functions: A.1.2.1 Procurement of new IT tools (programming, administration, finance) A.1.2.1. Logistical supports for office facilities: printers, computers, photocopiers, vehicles A.1.2.2. New book-keeping record system put in place A.1.2.3. In-house Technical Assistance Support Indicators 1.1.1. Number of working plans (WP) 1.1.2. Management meetings (MM) 1.1.3. Training plans (TP) 1.2.1: Number of IT software procured 1.2.1: Number of supply tender dossiers prepared for procurement of office materials 1.2.2 Book-keeping system 1.2.3. Date of recruitment for a TA Baselines (incl. reference year) 1.1.1 : 0 1.1.2: 12 1.1.3: 0 Zero in baseline for all activities Targets (incl. reference year) 1.1.1: 12 per year 1.1.2: 50 per year 1.1.3: 1 TP per year 1.2.1: IT tools procured 1.2.1: 5 tenders 1.2.2: 1 book keeping system in place and functional 1.2.3: 1 TA in place and functional Sources and means of verification For all activities: - PE reporting - ROM reports 1.2.1: PE reports, Financial expenditures statement 1.2.1: Audit Framework contract 1.2.2: TA report and ROM report 1.2.3: TA reporting Assumptions Managerial functions remain key issue the MoF intends to address 13

Result Area No. 2 Pro-active coordination and support to Government institutions in the identification and implementation of EU external assistance is improved Activities A.2.1. With the beneficiary entities (Government, agencies and other beneficiaries) A.2.1.1.Improved coordination with the MDAs (design, implementation of programmes) A.2.1.2. Relevant coordination with all the beneficiary entities under 11 th EDF (delegated cooperation partners, CSOs) A.2.2.Within the Ministry and the NAO office A.2.2.1. Improved awareness of the role of the NAO within MoF hierarchy through organisation of regular events A.2.3. With the EU Delegation A.2.3.1.Pro-active role of NAO in the relationships between EU Delegation and the beneficiary entities A.2.3.2. Pro-active role in dealing with Regional Programming Indicators Number of meetings on EU procedures with line beneficiaries Number of Action Documents (AD) designed with the pro-active support of NAO Number of internal events organized at MoF on EU cooperation Number of management meetings with EU Delegation Baselines (incl. reference year) Zero in baseline AD in indirect management mode only Zero in baseline 2 meetings per year Targets (incl. reference year) 2 meetings per year with beneficiaries All AD 1 event each year 1 meeting every quarter Sources and means of verification PEs reporting Number of AD approved per AAP PEs reporting Minutes of the meetings Assumptions Commitments of all line beneficiaries to learn and implement the EU's rules regarding contract management 14

Result Area No. 3 A dedicated monitoring framework for EU-Ghana development cooperation is implemented Activities A.3.1. Dedicated M&E unit A.3.2.Ensure that all programmes are duly monitored and lessons learned captured. A.3.3. Specific system for monitoring EU-Ghana development cooperation is functional A.3.4. Release of regular M&E briefs or paper Indicators Number of monitoring reports published Number of monitoring missions each year Baselines (incl. reference year) Zero in baseline Zero in baseline Targets (incl. reference year) 2 reports per annum as from year + 2 of implementa tion Sources and means of verification PE reporting Monitoring report Assumptions Quality of monitoring reports will enable to better track the shortcomings Result Area No.4 Visibility and awareness raising on the EU-Ghana development cooperation is increased. A.4.1. EU's visibility / communication plan defined for the specific functions of the NAO A.4.2. Publication of a regular quarterly information bulletin on ACP-EU activities. EU visibility/communication Action Plan Quarterly bulletin published Zero in baseline Zero in baseline 1 yearly communica tion plan Quarterly bulletins produced as from year 2 of implementa tion Reports produced Bulletins produced and read within the Ministry and outside Visibillity and communication are structured in an innovative way with the aim to promote a positive approach of the Ghana EU partnership. 15