EXECUTION OF IFAD PROJECTS:

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EXECUTION OF IFAD PROJECTS

• Constraints and proposed solutions

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Introduction

• Non-exhaustive survey of constraints linked with
  the implementation of projects cofinanced by IFAD

• These are particular points about which the
  cooperating institution is concerned
• Attention these constraints do not apply to all
  IFAD projects.

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1) The Problem 
Projet start-up is still a difficult phase
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Consequences
- increase in project cost directly linked to
inflation - reduced motivation of the target
group involved in formulating the project -
project design that over time tends to become
distanced from the reference situation analysed
and taken into account during its formulation -
extra costs for the Government, which is
responsible for the salaries of project
coordination unit (PCU) staff between their
appointment and the time the loan comes into force
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Proposed solutions 

• sensitization of the Government on the need for
  rapid disbursement of counterpart funds (HIPC or
  other)

• Greater involvement of the supervisory ministry
  in the conditions to be fulfilled, especially
  through designation of a focal point prior to
  negotiations

• Funding a facilitator to support the
  condition-linked process (apart from start-up
  activities)

• Covering of the coordinators salary from the
  Special Operations Facility grant from the time
  of his/her selection/nomination, and the signing
  of other staffs contracts after entry into force

• Greater synergy with other IFAD projects under
  way in the same country or other subregional
  projects (thanks to FIDAFRIQUE)
• Harmonisation of the loan agreement conditions

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2) The problem 
Failure to fulfil the donors mandate during
project implementation
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Consequences

• Dispersal of funds to an expanded target group
  not corresponding to that of the donor

• Goal of poverty reduction barely achieved

• insufficient resources for the poorest population
  groups in comparison with other project activities

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Proposed solutions

• greater PCU responsibility for the goals to be
  achieved (accountability)

• better training for project partners

• strengthening of the supervisory role of the
  supervisory ministry and the steering committee

• PCUs guarantors of IFADs mandate

• development of an IFAD ethos

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3) The problem 
Some supervisory ministries and/or steering
committees are insufficiently involved in project
monitoring and supervision
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The consequences

• divergence from the strategy agreed by the
  Government and IFAD

• best use not made of funds borrowed by the
  Government for poverty reduction

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Proposed solutions

• greater assumption of responsibility by external
  national-level supervisory structures

• strengthening of cooperating institutions
  supervisory mechanisms

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4) The problem
Withdrawal applications sent to the cooperating
institution are not presented correctly
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Consequences  many delays in the
disbursement of funds

• Analysis of withdrawal applications reveals the
  following main problems 

• errors in the numbering of withdrawal applications

• miscalculations of category totals

• errors in the percentages applied to the sum
  spent frequent

• errors in the allocation of expenditure to
  different categories

• specific conditions not complied with for certain
  categories (Annex 2, loan agreement)

• use of wrong SS1 or SS2 forms

• documents missing (supporting documents for SS1 ,
  delivery slip, proof of payment)   frequent

• miscalculations in the handling of civil
  engineering contracts (invoice, recovery of
  start-up advance, collateral/guarantees, etc.)

• Lack of description of expenses for ss2 -frequent

• failure to take account of amendments to loan
  agreement (if any )

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Proposed solutions

• better training of administration and finance
  officers

• control of withdrawal applications by the PCU
  coordinator

• increased training of national control structures
  through which withdrawal applications are passed
  (Autonomous Sinking-Fund Office, Ministry of
  Finance)

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5) The problem
Annual audit reports not submitted on time (6
months after the end of the financial
year)UNOPS-Dakar 2 projects out of 17 in 2004
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6) The problem
Monitoring and evaluation (ME) do not provide
enough knowledge of the projects socio-economic
impact
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Proposed solutions

• strengthening of the analytical skills of all PCU
  staff

• involvement of all actors in the monitoring and
  evaluation task
• application of monitoring and evaluation tools
  developed by IFAD (RIMS, etc.)

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THANK YOU FOR YOUR ATTENTION