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EXECUTION OF IFAD PROJECTS:

EXECUTION OF IFAD PROJECTS:. Constraints and proposed solutions. Introduction. Non-exhaustive survey of constraints linked with the implementation of projects cofinanced by IFAD. These are particular points about which the cooperating institution is concerned

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EXECUTION OF IFAD PROJECTS:

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  1. EXECUTION OF IFAD PROJECTS: Constraints and proposed solutions

  2. Introduction Non-exhaustive survey of constraints linked with the implementation of projects cofinanced by IFAD • These are particular points about which the cooperating institution is concerned • Attention: these constraints do not apply to all IFAD projects.

  3. 1) The Problem : Projet start-up is still a difficult phase

  4. Consequences : - increase in project cost directly linked to inflation - reduced motivation of the target group involved in formulating the project - project design that over time tends to become distanced from the reference situation analysed and taken into account during its formulation - extra costs for the Government, which is responsible for the salaries of project coordination unit (PCU) staff between their appointment and the time the loan comes into force

  5. Proposed solutions : • sensitization of the Government on the need for rapid disbursement of counterpart funds (HIPC or other) • Greater involvement of the supervisory ministry in the conditions to be fulfilled, especially through designation of a focal point prior to negotiations • Funding a facilitator to support the condition-linked process (apart from start-up activities) • Covering of the coordinator’s salary from the Special Operations Facility grant from the time of his/her selection/nomination, and the signing of other staff’s contracts after entry into force • Greater synergy with other IFAD projects under way in the same country or other subregional projects (thanks to FIDAFRIQUE) • Harmonisation of the loan agreement conditions

  6. 2) The problem : Failure to fulfil the donor’s mandate during project implementation

  7. Consequences : • Dispersal of funds to an expanded target group not corresponding to that of the donor • Goal of poverty reduction barely achieved • insufficient resources for the poorest population groups in comparison with other project activities

  8. Proposed solutions : • greater PCU responsibility for the goals to be achieved (accountability) • better training for project partners • strengthening of the supervisory role of the supervisory ministry and the steering committee • PCUs: guarantors of IFAD’s mandate • development of an “IFAD ethos”

  9. 3) The problem : Some supervisory ministries and/or steering committees are insufficiently involved in project monitoring and supervision

  10. The consequences : • divergence from the strategy agreed by the Government and IFAD • best use not made of funds borrowed by the Government for poverty reduction

  11. Proposed solutions: • greater assumption of responsibility by external national-level supervisory structures • strengthening of cooperating institutions’ supervisory mechanisms

  12. 4) The problem: Withdrawal applications sent to the cooperating institution are not presented correctly

  13. Consequences : many delays in the disbursement of funds • errors in the numbering of withdrawal applications Analysis of withdrawal applications reveals the following main problems: : • miscalculations of category totals • errors in the percentages applied to the sum spent– frequent • errors in the allocation of expenditure to different categories • specific conditions not complied with for certain categories (Annex 2, loan agreement) • use of wrong SS1 or SS2 forms • documents missing (supporting documents for SS1, delivery slip, proof of payment)– frequent • miscalculations in the handling of civil engineering contracts (invoice, recovery of start-up advance, collateral/guarantees, etc.) • Lack of description of expenses for ss2-frequent • failure to take account of amendments to loan agreement (if any )

  14. Proposed solutions : • better training of administration and finance officers • control of withdrawal applications by the PCU coordinator • increased training of national control structures through which withdrawal applications are passed (Autonomous Sinking-Fund Office, Ministry of Finance)

  15. 5) The problem: Annual audit reports not submitted on time (6 months after the end of the financial year)UNOPS-Dakar: 2 projects out of 17 in 2004

  16. 6) The problem: Monitoring and evaluation (M&E) do not provide enough knowledge of the project’s socio-economic impact

  17. Proposed solutions : • strengthening of the analytical skills of all PCU staff • involvement of all actors in the monitoring and evaluation task • application of monitoring and evaluation tools developed by IFAD (RIMS, etc.)

  18. THANK YOU FOR YOUR ATTENTION

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