Managing aid in Rwanda: current structures and procedures Aid on budget Workshop

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Managing aid in Rwanda current structures and
proceduresAid on budget Workshop
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Presentation Outline

• Overview of evolving policy context and aid
  management structures
• Overview of Rwandas Aid Policy
• Institutional set-up for aid effectiveness
• Some key challenges
• Aid management procedures
• Aid management information systems-DAD

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Evolution of policy context and structures for
aid management

Post-crisis recovery Post-crisis recovery Post-crisis recovery Post-crisis recovery Transition period Transition period Transition period Transition period PRSP1 PRSP1 PRSP1 PRSP Evaluation PRSP Evaluation EDPRS (PRSP 2)
Emergency and humanitarian aid Emergency and humanitarian aid Emergency and humanitarian aid Emergency and humanitarian aid Project support / IFI loans Project support / IFI loans Project support / IFI loans Project support / IFI loans Project Support and Budget Support (incl. PRSC) Project Support and Budget Support (incl. PRSC) Project Support and Budget Support (incl. PRSC) Project Support,Budget Support,Development of SWAps Project Support,Budget Support,Development of SWAps Project support, GBS, SBS(? SWAps)
1994-1997 1994-1997 1994-1997 1994-1997 1998-2001 1998-2001 1998-2001 1998-2001 2002-2004 2002-2004 2002-2004 2005-2006 2005-2006 2007-
Implementation and eval. of PRSP1
Development of EDPRS andstrenghtening sector
strategies
Policy and planningframework
Aid Policy
Annual high-level GoR and Development Partners
Meeting
Forums for dialogueand coordination
Budget Support Harmonisation Group
DPCG and sector clusters
External Finance Unit (MoF)
CEPEX
Institutional frameworkfor aid management
with support from AidCoordination Unit (UNRCO)
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Rwandas Aid Policy A national vision for aid
and its effectiveness

• What is the Aid Policy?
• National policy developed by GoR and approved by
  Cabinet (July 2006)
• Best seen as a set of guiding principles for
  the delivery of aid in Rwanda
• A vision for the implementation of the PD
• How was it developed?
• GoR-led process, with limited external assistance
  to the process and document
• Extensive consultation across GoR and development
  partners over gt 1 year

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Rwandas Aid Policy Key features

• Clear objectives that fit with Paris Declaration.
• Comprehensive addresses all types of assistance.
• Sets out GoR preferences
• Preferred aid modalities General Budget Support
  gt Sector Budget Support gt Projects.
• All aid to be on-budget and on-plan.
• Increase use of GoR systems in delivery of aid.
• Pooling of funds, and delegated cooperation, to
  be encouraged.
• Intra-GoR division of responsibilities clarified.
• The need for further strengthening of GoR
  planning, PFM and aid management systems.
• Outline provisions for implementation, backed up
  with a more detailed implementation plan.

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Institutional framework for implementation of Aid
Policy
Aid Policy Implementation Committee
MINECOFIN, Office of the President, PRIMATURE,
MINAFFET, MINALOC, CNLS, HIDA
? Provides high-level oversight and strategic
direction
Technical Secretariat
External Finance Unit, MINECOFIN
? Works with GoR bodies and DPs to implement the
interventions identified in implementation plan
DevelopmentPartners
GoREntities
OFFICIAL DONORS integrate aspects of the Aid
Policy in theirplanning maintain dialogue with
GoR
LINE MINISTRIES, LOCALADMINISTRATIONS,
andSEMI-AUTONOMOUS BODIESwork with Secretariat
to improveintra-GoR division of
labour,strengthen GoR systemsand human resources
NGOs collaborate with MINALOC andMINECOFIN to
ensure assistance isprovided in an effective
manner
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A new framework for ME and dialogue with
partners, aligned to the EDPRS
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Some key challenges

• Need to ensure that Aid Policy is mainstreamed
  across GoR institutions (project shopping
  persists).
• Need to think about how we assess degree of
  alignment with EDPRS and sector strategies.
• Some donors reluctant / unable to adapt despite
  advances on part of GoR.
• Need to ensure stronger GoR lead in capacity
  development for aid management.
• Further progress on the SWAp agenda (must come
  from the sectors themselves).

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The aid management chain Aid policy provisions-
step 1.

• Line ministry, district or government body
  seeking assistance undertakes initial discussions
  with potential donors with the aim of developing
  initial ideas.
• Concern that ideas are government-owned and
  respond to priorities identified in sector
  strategic plans.
• At this early stage, negotiations are not
  undertaken, nor are agreements signed.

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Aid policy provisions- step 2.

• Line ministry, district or government body writes
  to MINECOFIN with details of proposal
• MINECOFIN examines proposal for fit with national
  policies and priorities
• Line ministry (or similar GoR body) retains
  responsibility for ensuring that proposal is
  technically sound throughout
• MINAFFET consulted may raise objection

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Aid policy provisions- step 3

• Line ministry, district or government body meets
  with MINECOFIN and MINAFFET to agree on GoR
  position in negotiations.
• Negotiations involve relevant line ministry,
  district or Gvt body, MINECOFIN, MINAFFET and
  donor(s). MINECOFIN provides its expertise in
  negotiation at this stage

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Aid policy provisions- step 4

• MINECOFIN oversees fulfilment of agreement
  effectiveness (through its External Finance Unit)
• Agreements between GoR and donor organisation are
  signed by MINECOFIN for the GoR (unless donor
  requires MINAFFET signature)
• Details of agreement recorded on relevant GoR
  systems

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Aid policy provisions- step 5

• The line ministry or other GoR body will normally
  be responsible for overseeing implementation of
  an assistance package.
• Implementing body should engage in regular
  dialogue with MINECOFIN / CEPEX, particularly
  where issues arise requiring attention (e.g.
  delays to disbursement)

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Aid policy provisions- step 6

• For project support line ministry or other GoR
  body overseeing implementation works with CEPEX
  to ensure follow-up
• Budget support line ministry is responsible for
  the collection, aggregation and dissemination of
  appropriate performance data to donors. Such data
  is made available to MINECOFIN for the APR.

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Aid management database- DAD

• DAD is a web-based tool designed for ODA data
  collection, tracking, analysis, and planning.
• DAD is designed for use by national governments
  and the broader assistance community (bilateral
  donors, multilateral donors, IFIs, etc.).
• DAD Rwanda was launched in March 2006.

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Why a DAD in Rwanda?

• Launched in March 2006, DAD Rwanda was developed
  with the aim to achieve the following
• Enable the GoR to drive the processes of aid
  management by
• Establishing a single repository of all ODA in
  Rwanda and replace old, inefficient systems
• Use the tool to monitor ODA and its utilisation
• Enable the GoR to do gap analyses, facilitate
  planning process and resource mobilisation
• Institutionalise transparency accountability
  between GoR DPs

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Process and type of data

• Project level ODA data
• Title, Sector, Location, Donor, Implementer,
  Natl Counterpart, Commitment, Disbursement,
  Modality, etc..
• Donor agencies report via the web interface (1
  Focal Point per agency)

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Linkages to budgeting process
National Budget
Development Budget
Recurrent Budget
Interface
Interface
DAD Rwanda
BudgetMaster
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Selected key lessons

• Mainstreaming of an Aid Policy requires extensive
  input and ownership over the policy from across
  government at both technical and political
  levels.
• Institutions coordinating aid need clear mandates
  (duplication results in overlap and confusion).
• Source of data during the aid management
  information chain should be clarified and
  responsibilities defined.

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Thank you