Presentation of Progress against the Performance Assesment Framework (PAF) 2009 targets

1. Presentation of Progress against the Performance Assesment Framework (PAF) 2009 targets 2009 GBS Annual Review Presentation by: Ministry of Finance and Economic Affairs

2. OUTLINE • Background • The PAF Matrix • Overall Assessment of PAF 2009 • Underlying Processes: Sector reviews • Temporary Process Actions • Outcome Indicators • Conclusion

3. Background • GBS is governed by the Partnership Framework Memorandum (PFM) of January 2006 which specifies the principles and terms between the Government and GBS-DPs regarding the provision of GBS

4. Background (cont) • Underlying principles relate to the following: • continuing sound macroeconomic policies and management; • commitment to achieving MKUKUTA objectives and MDGs; • sound budgeting and public financial management systems; • continuing peace and respect for human rights, the rule of law, democratic principles, and the independence of the judiciary; and • good governance, accountability of the Government to the citizenry, and integrity of public life, including the active fight against corruption. • Their observance is critical for the continuation of the partnership agreement

5. What is the PAF Matrix? • Three main PAF elements, which are assessed: • Underlying Processes • Temporary Process Actions (TPAs) • Outcome Indicators • The 2009 PAF has: • 20 Underlying Processes • 25 TPAs to be assessed • 34 Outcome Indicators

6. What is PAF Matrix (cont) • PAF Matrix indicators are grouped into four Clusters areas: • Growth and Reduction of Income Poverty; • Improvement of Quality of Life and Social Well-being; • Governance and Accountability); • Public Financial Management and Macroeconomic Stability

7. What is the PAF Matrix? (Cont) Issues to monitor: • Cluster 1- Is broad based economic growth being effectively promoted? • Cluster 2- Is there improved quality of life? Is service delivery improving? • Cluster 3-Is good governance and the rule of law ensured? Is Government accountable to the people? • Cluster 4-Does the budget reflect national policies? Does spending reflect the budget? Are budgetary decisions consistent with policy and Value For Money?

8. Overall Assessment of PAF 2009 • The assessment of performance against the PAF 2009 has been completed • 14 out of 20 Underlying Processes have taken place during this year’s GBS cycle • 13 out25 TPAs have been achieved • 19 out of 34 Outcome Indicators have been achieved

9. Cluster 1-Growth and Reduction of Income Poverty 5 out of 7 Underlying Processes are Satisfactory 2 out of 7 Underlying Processes with Split Decision • Joint Infrastructure Sector Review(JISR) 2009 • Agricultural Sector Review (including PER and Performance Review of ASDP) for year 2009. • Tax Modernization Programme Review 2009 • Financial Sector support Programme Review 2009 • Annual National Panel Survey Stakeholder Review • Best Programme Review 2009 (GOT) Marginally Satisfactory,(DPs) Unsatisfactory • Energy Sector Review 2009 (GOT) Satisfactory,(DPs) Unsatisfactory

10. Cluster 1-Growth and Reduction of Income Poverty 3 out of 9 TPAs Achieved in Cluster 1 • Government improves port congestion situation by three key measures by June 2009: i)Tanzania Ports Authority presents a time-bound action plan for moving to Landlord Status; ii) TPA to submit a solid proposal to SUMATRA to approve increase in port storage tariffs and reduction in free time; and iii) GoT establish own area for impounded containers • Irrigation Policy to be operationalized by October, 2009 • Approve and initiate implementation of an Action Plan to improve accountability and transparency in managing Forestry, Wildlife licenses and concessions, if any, by end of October 2009

11. Cluster 1-Growth and Reduction of Income Poverty 6 out 9 TPAs Not Achieved in Cluster 1 • Strengthening TANESCO’s Revenue Collection to meet full operation cost recovery by October, 2009 • Update FIAS study paying particular attention to regulation and local taxes affecting agriculture by June 2009 based on the findings and recommendations of the study • Tanzania Statistical Master Plan TSMP approved by Cabinet by May 2009 • Draft bill and regulatory framework for Private-Public Partnership submitted to Parliament by October 09. • Completion of land registry, and land information assessment study; and agreement on an action plan to implement study recommendations in order to improve land records management and to speed up land registration by October 2009 • By October 2009, the Investment and Private Sector Development Department in Prime Minister's Office: i) has mainstreamed Regulatory Impact Assessments in Government Systems, ii) effectively advises Government on the impact on business of proposed policies and legislation, and iii) proposes new measures to improve the business environment

12. Cluster 1-Growth and Reduction of Income Poverty 6 out of 10 Outcome Indicators Achieved/on-Track 4 out of 10 Outcome Indicators not Achieved/off-Track • % of population with access to electricity • % of trunk and regional roads network in good and fair condition • Time Taken for a Container from offloading until clearing from port (Import Data) • Hectares of Land under irrigation • The number of days taken by the Commissioner of Lands to approve a transfer of a Certificate of Rights of Occupancy and the Lands Registry to register the transfer reduced from 28 to 14 by 2010 • Total value of Revenue received from concessions and licenses for Forestry, wildlife, fishing, minerals and natural gas • Total electricity generation capacity and utilization MW% • % of rural roads that are passable (good and fair conditions) • Reduction of income poverty in rural population (measured by annual agriculture GDP growth) • Enabling environment for private sector lead growth improved as reflected in “Doing Business” ranking

13. Cluster 2- Improvement of Quality of Life and Social Well-being 3 out of 3 Underlying Processes are Satisfactory • Joint Education Sector Review • Water Sector Review • Health Sector Review

14. Cluster 2- Improvement of Quality of Life and Social Well being 3 out of 3 TPAs Achieved • Establish gender disaggregated data for percentage of cohorts completing standard seven, O-level and A-level, as well as for gross enrolment (and total enrolment) in higher education by June 2009 • PETS carried out for primary and secondary education, according to the agreed TOR, with a first draft provided by August 2009 • MoWI will conduct a full review of the monitoring framework and systems to ensure consistency of definitions and accuracy of data (including data on sanitation, water resources management and water supply services) by September 2009.

15. Cluster 2- Improvement of Quality of Life and Social Well being 8 of 14 Outcome Indicators are Achieved/On-Track • Percentage of cohorts completing Advanced Level secondary education (Form VI) • Transition Rate from Standard VII to Form I Gender Disaggregated • Gross enrolment (Total Enrolment) in Higher Education • Qualified Teacher/Pupil ratio in Primary Schools • Sustaining the high proportion (equal to or above 85%) of children that receive three doses of vaccine against diphtheria, pertussis (whopping cough), tetanus, and Hepatitis B under two years. • Sustaining the high (80%) Tuberculosis completion treatment rate • Amount of collected waste in tonnes per day in the three municipalities of Dar Es Salaam • Number of Districts allocating budget to EMA implementation

16. Cluster 2- Improvement of Quality of Life and Social Well being 6 out of 14 Outcome Indicators are Not Achieved /Off-Track • Percentage of cohort completing Standard VII* • Percentage of cohort completing Ordinary - Level Secondary Education (Form IV)* • Qualified Teacher/Pupil ratio in Secondary Schools • Proportion of births taking place at health facilities as a proxy of births attended by skilled H/Workers. • Number of people with advanced HIV infection receiving Antiretroviral Combination Therapy gender disaggregated • Percentage of the population that has access to clean and safe water from a piped or protected source (Rural/urban)

17. Cluster 3- Governance and Accountability

18. Cluster 3- Governance and Accountability 4 out of 8 TPAs Achieved in Cluster 3 • PCCB Strategic plan 2009-2013 to be made public and the PCCB to finalize National Governance and Corruption Survey by July 2009. • GoT to maintain efforts to fight corruption at all levels, including the conclusion of grand corruption investigations . • The legal sector M & E System is revised through updating the Performance Measurement Framework, approved by the Joint Programme Implementation Review Committee, and operationalized through collection of data for at least one outcome indicator per key results area. • Baseline information collected by PMORALG on the number of village assemblies held at each local council per financial year and establishments of annual targets by October 2009.

19. Cluster 3- Governance and Accountability 3 out of 8 TPAs are Not Achieved There is a split decision on 1 out of 8 TPAs • GoT approves Medium-Term Pay Policy and Targets by June 2009. • In response to Medium Term Pay Policy the inter-ministerial task force has drafted (1) a comprehensive road-map that provides incentives for frontline workers in underserved areas through central and local levels, and (2) measures limiting additional recruits to better served areas, by October 2009 . • Key documents related to budget process (budget guidelines, MTEFs, quarterly execution reports, annual implementation and audit reports) continue to be made publicly available (incl. on GoT websites) In a timely and systematic manner by October 2009 • Performance Assessment Framework developed and agreed by end of June 2009 and used in the sector review for local government reform in October 2009 DPs: not achieved, GoT: achieved

20. Cluster 3- Governance and Accountability

21. Cluster 4- Macroeconomic Management and Public Financial Management 3 out of 5 Underlying Processes Satisfactory 1 out of 5 Underlying Processes with a Split Decision • Annual Audit Cycle • MKUKUTA II Process • Macroeconomic Stability • Public Financial Management Reform Programme GoT: Satisfactory with serious concerns, DPs: Unsatisfactory 1 out of 5 Underlying Processes Unsatisfactory • PER/Budget Process

22. Cluster 4- Macroeconomic Management and Public Financial Management 2 out of 4 TPAs are Achieved 2 out of 4 TPAs are Not Achieved • Procurement Management Units (PMU’s) established in all procuring entities (PE’s) and full operationalisation of scheme of service for procurement cadre by 2010. BY March 2009: Code of Conduct and Professional Standards for the Procurement and Supplies Professional issued. • Implement new GFS economic and functional classification by June 2009 • Implementation of fast-track IFMS actions by Accountant Generals' Department, pending the completion by September 2009 of a full action plan following the NAO report • Presentation to Parliament of amendments to Public Procurement Act to increase autonomy of PPRA , and power to enforce procurement by February 2009.

23. Cluster 4- Macroeconomic Management and Public Financial Management

24. Continued implementation of the EPA action plan including (i) the BoT corporate plan that supports the refocusing of the BoT on its core activities and (ii) agreement between the MoF and the BoT on the management of any remaining EPA claims by September 2009 UPDATE ON EPA • Lazard and Cleary Gottlieb (the Consultan) started their mission of reconciliation and resolution of the External Payments Arrears (EPA) Account in May 2009. • The objectives of the mission were as follows: • To ascertain how the remaining debt as at 2004 has been handled. • To compile and establish the current stock of remaining EPA debts. • To develop, jointly with the MOF and BOT, a strategy and action plan to handle the unsettled claims. • To implement the strategy. • On 11th August 2009, the consultant submitted to the Bank an inception report. • The report was immediately distributed to the Team entrusted to discuss the consultant's deliverables. • The Bank (through the Director of Economic Policy) called a meeting on 28th. August, 2009 to discuss the Inception Report. • Recommendations on the Report have been forwarded to Management.

25. UPDATE ON EPA Other Issues • BOT has included in in its 2009/10 a program for shading off non-core activities. • Discussions are underway between the BOT and MOFEA on reconcialliation and unification of government debt data base. • A joint MOFEA –BOT government debt data base unification task force has been formed. The task force will recommend an appropriate action plan for this unification.

26. Assessment of development partners performance (Predictability of Direct Budget Support) Commitments of GBS Performance of GBS for three Years in USD. • Commitments of General Budget Support for the past three years have remained constants in terms of volumes • The graphs shows small difference between estimates and actual disbursements • GBS is the preferred modality for funding of MKUKUTA/MKUZA. • The GoT calls on GBS partners to scale up funding on GBS • GOT request Non GBS partners to consider joining the GBS modality.

27. Summary The review process started earlier with strong ownership and leadership by the GoT Overall performance has been mixed Stronger qualitative dialogue is required at sector level to reduce the occurence of split decisions on the assessment of PAF-indicators The core- and cross-cutting reforms remain a challenge Outcome Indicators should be well designed to ensure that valid and timely data is available The Key Issue discussions will reflect the challenges faced in the PAF implementation

28. Asanteni sana!