EU-GOG STAKEHOLDERS’ CONSULTATIVE WORKSHOP

1. EU-GOG STAKEHOLDERS’ CONSULTATIVE WORKSHOP 10TH EUROPEAN DEVELOPMENT FUND COUNTRY STRATEGY PAPER/NATIONAL INDICATIVE PROGRAMME SEPTEMBER, 2006 ACCRA.

2. Workshop Objectives • Sensitize State and Non- State Actors about ACP-EU Cooperation (Cotonou Partnership Agreement). • Seek Stakeholders’ opinions, suggestions, comments and inputs for the 10th EDF CSP/NIP.

3. STRUCTURE OF PRESENTATION Setting the Context: 10th European Development Fund Ghana Joint Assistance Strategy (JAS) Followed by a separate presentation on 10th EDF Country Strategy Paper and National Indicative Programme (CSP/NIP)

4. ACP-EU COOPERATION (COTONOU PARTNERSHIP AGREEMENT) • ACP and EU cooperation formalized in 1975 with the signing of the Lome 1 Convention- the first in a series of partnership agreements. • Signing of Cotonou Agreement in 2000 for a 20 year period. It was revised in 2004. • There are now 25 EU Member States and 78 ACP Countries which have acceded to the Agreement.

5. Overarching Objectives of Cooperation • Eradication of poverty in the context of sustainable development • Pursuit of the Millennium Development Goals (MDGs) • Integration of developing countries in the world economy while promoting policy coherence for development (Source: European Consensus on Development, 2005)

6. The 3 Pillars of Cotonou Agreement • Cotonou Agreement may be viewed as a house built on 3 pillars. Cotonou Agreement Political Dimensions Development Cooperation (EDF) Trade

7. European Development Fund (EDF) • EDF is a dedicated fund for development established by EU into which every 5-years,each of the EU Member States contributes an agreed amount. • Currently, the 9th EDF (2002-2007) is operational. • Cooperation follows a 5-year cycle and the relevant Financial Protocol is agreed upon and attached to the Agreement. • The EDF is used to provide Financial and Technical Assistance to support cooperation priorities jointly agreed upon by EU- ACP.

8. European Development Fund (EDF)cont’d • 10th EDF figures for 2008-2013: • 22,6 billion Euros overall • 282 million Euros plus incentive tranche to Ghana • 4.5 million Euros plus incentive tranche to West-Africa (ECOWAS and UEMOA)

9. European Development Fund (EDF) cont’d • EDF is channeled through 2 facilities: Grant Facility (GF) and Investment Facility (IF): • GF is for cooperation programmes with countries, regions and all ACP. It is managed by the EC. • IF is for private sector development and managed by European Investment Bank (EIB).

10. Programming of EDF • Process of consultations between EC and ACP member country or Regional Organization to agree on priorities. • Application of the concept of Rolling Programming allows when justified, initial priorities and budget allocations to be revised during the Mid-Term Review (MTR). • The MTR for the 10th EDF will be in 2010.

11. EDF is programmed through • a Country Strategy Paper (CSP) and implemented through • a National Indicative Programme (NIP)

12. GHANA JOINT ASSISTANCE STRATEGY (JAS) • The definition of the CSP/NIP for the 10th EDF is parallel and aligned with the formulation of a Joint Assistance Strategy (JAS). • The JAS is the Development Partners’ response that describes how GoG and DPs will work together for a four-year period from 2007 to 2010.

13. GHANA JOINT ASSISTANCE STRATEGY (JAS) cont’d The specific objectives of the Ghana Joint Assistance Strategy are to: • Better align development partners (DPs) country strategies and resource allocations with GPRS II goals and priorities; • Improve aid delivery through a clearer division of responsibilities between DPs and, thereby a better allocation of DP resources; • Streamline ways of working amongst development partners and improve predictability in resource flows for GoG, and • Reduce transactions costs for the Government.

14. GHANA JOINT ASSISTANCE STRATEGY (JAS) cont’d Who is “in” the JAS? • All DPs in Ghana are part of the JAS. However, as individual DPs are at different stages of their programming cycle, the JAS will allow for DPs to join fully as their programming cycles allow. • Currently, EC, WB, DFID, DE and CIDA are involved.

15. What is the JAS? Policy Matrix PoA (APRM) GPRS II (+ APRM) National Development Strategy CG Results Matrix Harmonisation Action Plan Funding envelope Ghana Partnership Strategy ‘Global’ DP response Joint Assistance Strategy Subset of DP response JAS Structure FAQ -MDBS Stage 1: Joint Assessment & Strategic Framework Stage 2: Joint Programme Q: DPs already joint working through MDBS A: JAS extends joint working to other areas of assistance & other instruments to take forward GPS.

16. JAS Structure/Content Stage 1: Joint Assessment and Strategic Framework (a) Country and partnership assessment (b) Strategic vision – issues and priorities (c) Moving forward – strategic principles, ways of working (SWGs), dialogue struc- ture, aid modalities, & funding estimates 2007-2010 All DPs sign on to Stage 1 Stage 2: Joint Programme (d) Programming principles (e) Our shared & distinct responsibilities (f) Preferred aid modalities (g) Joint initiatives 2007-10 (h) Predicted financing plan (i) JAS Monitoring WB Annex CIDA Annex EC Annex GDC Annex DFID Annex

17. The 9th EDF National Indicative Programme • The 9th EDF NIP for Ghana is being implemented over the 2002-2007 timeframe. • The focal sectors for concentration of EC interventions are: • Rural Development; • Transport Infrastructure; • Macroeconomic Support. • These were the same sectors under 8th EDF.

18. 10TH EDF Consultative Workshop for State and Non State Actors • The 9th EDF NIP will end in December 2007. Thus the need for the workshop in the programming process for the 10th EDF CSP/NIP. • The consultative process involving the State and Non State Actors is in line with the Cotonou Agreement and EC Programming Guidelines. • The 10th EDF CSP/NIP is for 2008-2013 period.

19. 10TH EDF Country Strategy Paper/ National Indicative Programme (CSP/NIP)

20. Country Strategy Paper (CSP) 2008-2013 National Indicative Programme General Budget Support: Growth, Economic reforms, business and trade, environment Focal: Governance Decentralisation and Civil Society Non Focal Sector Focal: Road Interconnectivity and Regional Integration Decentralization -Policy Framework Water & Sanitation -Social Infrastructure Trunk Roads PSD,TRTA,EPA, NSA • Acronyms • Non State Actors (NSA) • Economic Partnership • Agreement (EPA) • Technical Cooperation • Facility (TCF) • Private Sector Development (PSD) Support Studies (TCF) Feeder Roads • Civil Society and Parliament • Enhance capacity of civil society for policy formulation and implementation • Support Parliament, and policy (possibly) Studies Migration, Security Logical framework GOG’s Commitments Logical framework. GOG’s Commitments Bio-diversity

21. General Principles • Ownership and Participation • Harmonization and Coordination • Policy mix with other EU policies • Concentration of aid • Subsidiarity • Maximise benefits of the EPAs and mitigate the related transitional costs • Lessons learnt from global/national evaluation of past cooperation

22. General Principles cont’d • Financial allocation: • An initial indicative allocation of 282 MEUR; • An additional allocation depending on the outcome of the dialogue during the programming, the level of commitment that GOG enters into the good governance and the expected absorption capacity.

23. General Principles cont’d • Implementation Modalities : • General Budget Support • Sector Budget Support • Programme/ Project Aid • EC is committed to channeling at least 50% of development aid through country’s system (budget support). • For Ghana EC commitment to budget support will be higher

24. General Principles cont’d(Aid Delivery Methods) APPROACH FINANCING MODALITY Project EC procurement and grant award procedures Sector Pooled or basket funds Global/Macro Budget Support

25. General Principles cont’d (What is Budget Support?) PARTNER COUNTRY’S CENTRAL BANK European Development Fund € Foreign Exchange Reserve € Treasury Account Fiscal & Non Fiscal Revenues • Conditions for • Disbursement: • General Eligibility • Tranche Specific Budget Implementation Through Public Financial Management System

26. THE CSP CALENDAR • Start programming 02/06 • Draft Country Strategy Paper 10/06 • EC internal meetings 03/07 • EU meetings 04/07 • EC Decision 05/07 • Signing new CSP/NIP 06/07 • Enter into force 01/08

27. THE JAS CALENDAR • In the framework of the Paris Declaration on aid effectiveness EC-DFID-WB-DE-CIDA agreed to elaborate a JAS by end of 11/06. • Other DPs will join the initiative at a later stage. • Even if EC calendar is slightly different, EC will align its CSP to Joint Assistance Strategy (JAS).

28. COUNTRY STRATEGY PAPER TABLE OF CONTENT • A country strategy analysis with a diagnosis of problems and an outline of the response strategy; • A National Indicative Programme (NIP) translating the response strategy into operational terms . The NIP can be described as a work programme for 6 years.

29. COUNTRY DIAGNOSIS • This entails the analysis of the political, social, economic and environment situation in the country; • Overview of past and present EC Cooperation complementarity and consistency: • Focal Sectors and macroeconomic support; • Projects and programmes in Non Focal Sectors; • Utilization of envelope B; • Other financing instruments • Information on EU MS programmes and other donors; • Coherence with other EU/EC policies; • State of play of Harmonization agenda.

30. DIAGNOSIS Cont’d • The country in the International Context • Migration • Security Issues • International/Regional agreements • Development strategy of the country • GPRS • APRM • Viability and sustainability of policies and challenges for the medium term.

31. RESPONSE STRATEGY • Based on the analysis made and keeping in mind: • The overarching objective of achieving equitable economic growth and accelerated poverty reduction in the context of sustained democracy • The comparative advantages of EC, and • The concentration principle and the need to mainstream cross-cutting issues in each of the focal areas.

32. NATIONAL INDICATIVE PROGRAMME (NIP) FOR 10TH EDF • CONCENTRATION OF EC ACTIVITIES • On the Basis of the GPRS II, the APRM, the programming guidelines for 10th EDF the EC and GOG have agreed on the following thematic areas: • Transport Interconnectivity and Regional Integration • Governance Theme • General Budget support • Non Focal sectors: (1) PSD/Trade/Regional Integration/EPA (2) Migration and Security (3) Support Biodiversity (possibly) • To maximize synergy interventions will support cross-cutting objectives: gender equality, environment sustainability and the role of NSA.

33. TRANSPORT INTERCONNECTIVITY AND REGIONAL INTEGRATION • Focal area of intervention since 8th EDF has a clear contribution to make in supporting GOG agriculture led growth and diversification of the Economy. It is essential to enhance regional integration and interconnectivity. • Focus on maintenance of roads (trunk and feeder) and new interventions to be backed by vigorous cost-benefit analysis. Support will be provided for studies of other transport infrastructure (railways and harbours).

34. GOVERNANCE THEME • OBJECTIVE: promoting peace and stability in the body politic including, the promotion of effective accountable state machinery with capacity to engage the private sector and civil society in policy formulation and implementation. This is in line with the GPRS II and the APRM and EC support to governance will help consolidate economic gains.

35. GOVERNANCE-THEME cont’d • Strengthen the role of District Assemblies and local institutions in the management, planning and monitoring to improve implementation. • Focus on community social infrastructure (schools and hospitals) and feeder roads through decentralized mechanisms. • Aid modality: sector budget support in the context of a Sector Wide Approach.

36. GOVERNANCE-THEME cont’d • Decentralization: Support to the implementation of the framework for decentralized delivery of local public services. • Enhance the participation of the private sector and civil society in policy formulation and implementation (GPRS II objective). • Strengthen Parliamentary capacity and oversight institutions.

37. GENERAL BUDGET SUPPORT • Participation in Multi Donor Budget Support (MDBS) for Growth, Economic reforms and overall implementation of GPRS II. • General budget support will also support trade and private sector development in the context of regional integration and implementation of the EPA.

38. General Budget Supportcont’d • Continue focussing on macro-economic support and improvement of Public Finance Management. • Improving the business climate / regulatory framework. • Supporting regional integration and trade including offsetting transitional cost of reforms and EPA.

39. NON FOCAL SECTOR • Non State Actors • Private sector development, trade related T.A. and support to Economic Partnership Agreement (EPA) • Migration and Security • Support to Bio-diversity (possibly) • Support studies (TCF)

40. 10th EDF, A-Envelope 282 million Euros

41. OTHER RESOURCES • 10th EDF incentive tranche for good governance (up to 25 % of base tranche) • 10TH EDF, B- envelope…….. million Euros for unforeseen needs • Investment Facility: for private sector and is not part of the programmable NIP resources • EU Budget Lines (Human Rights, Forestry, etc.) • Water Facility, Energy Facility • EIB-EC Trust Fund for Infrastructure

42. FUNDING OPPORTUNITIES FOR NON STATE ACTORS EDF: 4 windows of opportunities for Non-State Actors to obtain resources: • Capacity building • Micro projects through decentralized Cooperation • Standard EDF development projects (non focal sector) • ACP-EU Water Facility & Energy Facility

43. FUNDING OPPORTUNITIES FOR NON STATE ACTORS THEMATIC EU-BUDGET LINES: • Funded from the overall EU budget • Managed autonomously by the EC • Intended to finance projects on a wide range of priority issues • Made available through calls for proposals

44. FUNDING OPPORTUNITIES FOR NON STATE ACTORS • From 2007, there will be 6 new Thematic Programmes (financed from EU budget): • Democracy and Human Rights • Investing in People • Sustainable management of natural resources • Migration • Food security • Non State Actors and Local Authorities in Development

45. FUNDING OPPORTUNITIES FOR NON STATE ACTORS • Consultation with NSA in Ghana on thematic programme ‘Non-state actors and Local authorities’ • For further information on new Thematic Programmes: • http://ec.europa.eu/comm/development/body/csp_rsp/programming_thematic_programmes.cfm

46. THANK YOU FOR YOUR ATTENTION