Multi Donor Trust Fund

1
Multi Donor Trust Fund National and South

• Technical session with Worldbank Technical
  Secretariats, GoNU, GoSS, UN and donors
• 5 May 2008, Sudan Consortium

2
National MDTF

• MDTF as effective instrument for Donor
  harmonisation and coordination,
• In 2005 5 donors now 8 donors
• Donors paid 234 mln committed 80 disbursed
  36 of paid in
• Co-funded GoNU 366 mln 67 , increasing
  dialogue with GoNU counterparts.

3
External Review MDTFsfindings-1

• MTDF programs relevant to JAM/CPA, with
  increasing focus on institutional development
• Performance MDTF portfolio moderately
  satisfactory
• Disbursement rate fairly low (36 after 2,5
  years) but similar to other programs in Sudan.
• Some programs delayed due to mngt constraints and
  overoptimistic planning delay in counterpart
  funding also impacts on progress.

4
MDTF-N external reviewfindings -2

• 5. GoNU ownership and familiarity with WB/ MDTF
  procedures increased, but still outstanding
  issues re procedures on procurement, financial
  mngt.
• 6. Good monitoring and financial technical
  support by TS (WB) and Monitoring Agent.
• 7. Governance structure OC focusses on
  operational issues thematic groups required for
  policy planning coordination.

5
Recommendations from Review

• Stronger leadership of GoNU donors with more
  dialogue on strategic directions
• Increase knowledge on implementation ie by joint
  supervision and stronger relation with Monitoring
  Agent
• Clarify and resolve counterpart funding
• Make Thematic Groups operational to align MDTF
  to national policies/systems

6
After the review

• Donors conclusion Phase II of N-MDTF need to
  address lessons learned (no business as usual)
  enhanced dialogue
• Added to recommendations
• Despite pressure to expand portfolio, MDTF-N need
  to focus more
• More attention required for implementation
  issues.
• TS/WB-Kha needs to be strenghtened

7
Replenishing the MDTF-National- donors views

• GoNU development policy is broad further
  discussion / analysis needed of how MDTF-N fits
  in, i.e. on financing Joint Projects GoSS/GoNU
• Increased focus on war affected and border areas
  to promote stability as well as poverty
  reduction the East and the Three Areas
• ? Three Areas and East only received about 12
  mln and 4,3 mln resp under MDTF-N programs
• NB budgets 73 mln Three Areas and 65 mln East
  in total 138 mln 59 of MDTF
• 137 mln, 58 mln resp, 36 of MDTF-programming
• ? overall GoNU spending in Three Areas was 5 of
  JAM target

8
Replenishing the MDTF-National- donors views

• State programs to be backed up by national reform
  programs to enhance impact at state/locality
  level. i.e. decentralisation of planning
  funding
• Use joint progress reviews of programs
  addressing implementation issues - to ?
  engagement, and enhance dialogue with
  counterparts
• Create synergies with WBs analytical work on
  budget, social sectors, economic growth etc.
• Address sustainability in design of modalities
  shift to implementation led by Sudanese.

9
Way forward

• Solving outstanding issues on Phase II strategy,
  mainly financial planning/ funding ratio
• New commitments foreseen mid 2008, aim to
  increase, to achieve objectives
• New OC composition? New donor co chair?
• Division of labour among donors to follow
  implementation progress more effectively

10
MDTF-South

• Reflections on First Phase
• (2005-8)

11
Overview MDTF-S

• 14 donors have contributed to date
• - 355m donor funding committed 224m signed
  grant agreements (63)
• 125m in project accounts 109m paid out (30)
• Co-funding GoSS and donors
• Current de facto shift in funding ratio to approx
  5050
• GoSS contributions less than envisaged due to
  GoSS budgetary problems

12
Overview of Funding
13
Conclusions of External Review

• Delivery now picking up and broadly in line with
  expectations as a result of stronger GoSS and TS
  capacity
• Critical issue is prioritisation of available
  funding, with clarity as to GoSS and donor
  contributions
• Need to enable the MDTF Oversight Committee to
  function at a strategic level
• Strengthening of NGO engagement (at policy level
  as well as in implementation).

14
Co-Chairs Assessment

• Now much stronger GoSS ownership of the MDTF
  mechanism strengthened platform for policy
  dialogue overall government-led aid
  co-ordination
• Capacity of WB/TS Juba Office strengthened, but
  more capacity still needed esp. to deliver
  broader policy and analytical agenda
• Much effort still needed for sectoral programmes
  to deliver quality timely results. All
  programmes need strong ongoing supervision
  monitoring.

15
MDTF-South

• Key issues moving forward
• (2008-10)

16
MDTF-S Key Issues(1) Financing

• Estimate of 1.1 billion overall financing
  requirement 2008-11 (cost of current programmes
  plus approx 100 million new programmes)
• GoSS requesting 751m donor pledge to MDTF for
  the period 2008-11.
• Given the major financial needs of the MDTF-S for
  next phase, donor view is that it is essential
  that GoSS increases its allocations to the MDTF
  as soon as its revenue base allows.
• Donors requested by GoSS to front load as much as
  possible to 2008 and 2009.

17
MDTF-S Key Issues(2) Prioritisation

• Unless both donors and GoSS can increase
  contributions above current levels, portfolio
  cannot be expanded to cover important new issues,
  and will need to be cut back.
• Portfolio will need to be prioritised within
  agreed envelope using GoSS Expenditure Priorities
  2008-11 (focus on basic services, roads etc) as a
  framework to prioritise of Phase II proposals and
  allocation of any available finance to new
  programmes.

18
Proposals for MDTF-S (1) Strategic framework

• MDTF resource allocation to be prioritised using
  the GoSS Medium Term priorities 2008-11 document.
• Phase II programmes need to be very strategically
  focused ensure comparative advantage and
  complementarity in each sector using the Budget
  Sector Groups.
• Move to decentralised delivery state counties
• Much stronger focus on cross-cutting synergies
  gender, community driven development etc.

19
Proposals (2) Strengthening of Governance
Implementation Arrangements

• Oversight Committee enabled to play more
  strategic role with support of joint technical
  working group
• Effective linkages to new Sudan Recovery Fund
  (joint oversight mechanism to ensure
  complementarity)
• Stronger ME mechanism (monthly) with good
  GoSS-wide participation.
• Modality to engage state and local government
  (not ad hoc) e.g. MDTF focal points in states?
• More strategic NGO engagement
• Much stronger communications strategy needed