Key-points about the Mozambique One UN Fund experience

1. RCO Mozambique Key-points about theMozambique One UN Fund experience Alberto Musatti – RCO Mozambique Maputo, May 12 2009

2. DaO Mozambique: background and timeline RCO Mozambique • 2006 <- • Early 2007 • ->2007 • ~2007/2008 • 2008 3rdUNDAF (2007/09 under extension, to cover 2010 and 2011; built on the country’s PRSP “PARPA II” (assumed as CCA) Designation as 1/8 Pilot country One UN Operational Plan, including the One Programme The Joint Programmes that constitutes the One Programme are prepared completed (11) The Change Management project is developed and approved

3. Mozambique One UN Fund Purposes RCO Mozambique From the One UN Operational Plan: “A Delivering as One UN Fund will be established with a two-fold objective: (a) Bridging the funding gap in joint programmes: to support the coherent resource mobilization, allocation and disbursement of donor resources to the joint programmes (…); and (b) Supporting the change management process: to provide support to specific Change Management initiatives (…)”

4. Mozambique One UN Fund Set-up RCO Mozambique Pass-through modality Through the UNDP MDTF UNDP as Administrative Agent (AA) With signed LoA between the AA and donors With signed MoU between the AA and UN participating agencies Resource mobilization: Through a joint resource mobilization strategy, developed and supported by the UNCT (including the RC, as One Leader) to “strategically leverage funds”.

5. Mozambique One UN Fund The demand side: funds requirements RCO Mozambique 1. (Change Management Project and) JPs that meet the "readiness criteria“ are approved for funding Finalized Joint Programme Document Results Framework Monitoring and evaluation plan Annual Workplan Annual Performance Benchmarks

6. Mozambique One UN Fund JPs’ actors and mechanisms (…) RCO Mozambique UN Government UN organizations with a “convening agencies” (Submit a JP proposal to) Relevant Government’s counterparts (if needs improvements) PMT (Submit a revised JP proposal to) (if needs improvements) UNCT (if needs improvements) Competent Ministries (Submit a final JP proposal to) Joint Steering Committee JPs approved * JPs were requested to be at least 1/3 funded, with agencies resources

7. Mozambique One UN Fund The demand side: funds requirements RCO Mozambique 2. The approved JP can apply for funds to the nearest allocation window Two allocation windows open yearly: 1st January 1st July 3. With an amount proportionate to the unfunded part of the total requirements 4. According to the JP AWP for the period concerned.

8. Mozambique One UN Fund The supply side: release of funds RCO Mozambique 1. At the opening of an allocation window, the available funds are secured in a proportion of the total requirements (on a pro-rata basis) Total requirements (JPs A+B+C) JP A requires JP B requires JP C requires 1.000 100 (10%) 300 (30%) 600 (60%) Resources available: 800 (80%) JP A: funds allocated 10% * 800 = 80 (80%) JP B: funds allocated 30% * 800 = 240 (80%) JP C: funds allocated 60% * 800 = 360 (80%) 2. PMT approves, submit to UNCT. UNCT approves, submit to the Joint Steering Committee that endorses and authorizes the payments 3. UNDP as Administrative Agent (AA) receives the payment orders, aggregates the amounts per agencies and disburse the funds

9. Mozambique One UN Fund Further allocations RCO Mozambique

10. Mozambique One UN Fund the 1st allocation Total Approved JPs14,484,514

11. Mozambique One UN Fund Further allocations: performance-based RCO Mozambique Following the initial allocation and every 6 months 1. If progress is deemed "satisfactory" then the JP qualifies for an additional allocation (formula: same as initial allocation) SATISFACTORY: The JP has reached 70 % of delivery (in financial utilization against the AWP JPs that have a delivery rate of between 50 to 70 % will be cautioned to increase the speed of implementation and delivery of results, following which they will be closely scrutinized for subsequent allocations. 2. If progress is deemed “unsatisfactory“ (under 50 %), the JP will be advised that subsequent allocations of funds may be restricted should implementation not improve in all components of the Joint Programme.  With full utilization and overall achievement of annual targets for this category of Joint Programmes by the end of twelve months of implementation, and subject to a “satisfactory” rating, the Joint Programme will be eligible to apply for additional funds for the second year of implementation. Should the Joint Programme continue to have implementation difficulties resulting in unspent allocations at the year end, the UNCT may request reallocation of funds within the Joint Programme or return of unspent balances to the One UN Fund for allocation to other well performing Joint Programmes.

12. Mozambique One UN Fund Final considerations RCO Mozambique With an MDTF: +: agencies can concentrate on implementation -: implementation rate may suffer of the reduced funds predictability +: increased programme visibility +: added value for small agencies, that have scarce administrative capacity Some figures: Approx. amount In % A B C D D1 D2 JPs financial requirements Initial funding gap: Funding gap covered: Funds already distributed: To Change Management To JPs (initial all.) US $ 113 million US$ 52 million US $ 20 million (+4) US $ 1.5 million US $ 13 million 46% of A 45% of B 90% 24% of B 80% of the requirements

13. Mozambique One UN Fund Final considerations RCO Mozambique Today 1. All 8 JPs were deemed satisfactory after the first 6 months and admitted to apply for the second allocation window 2. 2nd allocation in March 2009 for approx. US $ 7 million, approved by the UNCT and pending the Steering Committee endorsement http://www.undp.org/mdtf/one-un-funds/mozambique/overview.shtml www.unmozambique.org