Progress Report on Implementation of the JAM

1. Progress Report on Implementation of the JAM Government of National Unity and Government of Southern Sudan Paris, March 9, 2006

2. Overview • SC preparations and monitoring process • Progress and next steps on policy and programs • Government of National Unity • Three Areas • Government of Southern Sudan • Role of Development Assistance

3. SC preparations and monitoring process • JNTT mandated to coordinate and monitor progress against the JAM • GNU and GOSS undertook roundtable discussions with respective line agencies to review progress • Consultations with development partners and NGOs in Khartoum • Joint sessions of GNU and GOSS to coordinate • Review and clearance by the Presidency and Council of Ministers  Arrangements now being strengthened to ensure regular processes of review and dialogue, and monitoring

4. Government of National Unity • Major achievements since the signing of the CPA -- as highlighted already • The JAM framework is an important reference point for the GNU’s development agenda = Road map for The Six Year National Strategic Plan Endorsed by the Presidency, Council of Ministers & line ministries • JNTT operationalized and mandated to track progress • At the same time, we recognise the need to accelerate progress on JAM implementation, alongside the restoration of peace throughout the country • International support – technical, financial and more generally, is critical to meeting the goals laid out

5. Policy and Program Development Priorities • Making unity attractive - an overriding strategic objective for all levels of the government • Enabling consolidation of the peace, including implementing the CPA, from the national level down to local reconciliation; • Improving governance, especially institutional capacity and public accountability; • Broad-based growth of income-earning opportunities, with a focus on smallholders, pastoralists and private sector development; and • Expanding access to basic services in the Northern States – basic health care, primary education and safe water and sanitation – to get efforts toward meeting the MDGs on track.  Scaled up progress in the Three Areas is a key cross-cutting objective

6. GNU Capacity Building and Institutional Development Progress in 2005 included reformed institutions at national level and in (all but one of) Northern states; and establishing such key institutions as the Joint National Transition Team and the FFAMC Priorities for 2006 • Civil service: establish National Civil Service Commission, initiate affirmative action to meet targets and implement plan for right-sizing and revising the pay structure • Effective decentralisation • Operationalize the FFAMC and establish a transparent and equitable intergovernmental system with predictable fiscal transfers • Develop capacity and accountability at lower levels • Improved fiscal transparency and accountability • Review public financial management and draft appropriate laws • Initiate moretransparent budgeting and reporting along GFS lines

7. GNUGovernance and Rule of Law Significant progress in laying the basis for democratic governance and sustained peace and development • Many milestones related to CPA implementation. Priorities for 2006: • Establish National Land Commission, and State Land Commissions in Blue Nile and Southern Kordofan States; • Operationalize commissions and independent institutions, especially the National Constitutional Review Commission and Human Rights Commission. • Review regulatory framework for media and launch campaign to promote a culture of peace and to disseminate the CPA

8. GNU Economic and Fiscal Policy Progress in 2005: • Restructuring of the Central Bank of Sudan is well advanced; preparations for issuing a new currency underway • Multi-Donor Trust Fund (MDTF) operational • Public expenditure review launched jointly with partners • Debt strategy and external borrowing policy developed Priorities for 2006: • Maintain macro-economic stability • Apply functional classifications for the budget, and publish monthly expenditure reports in GFS format • Deeper review of public expenditure, with focus on regional and pro-poor allocations • Work on the Poverty Eradication Strategy jointly with the GOSS • Review oil sector legislation, establish joint committees per CPA, ensure that revenue information is public and transparent • Issue new currency and replace old currencies in Southern Sudan • Implement customs and tariff reforms

9. GNU Productive Sectors Progress in 2005: • Draft agricultural policy prepared by MOAF, to improve rain-fed farming • Discussions on business climate; development of survey instrument • Community driven and rural development projects initiated. Priorities for 2006: • Implement reforms to Gum Arabic export policy, trade policy, irrigated agriculture and semi-mechanized farming • Review existing policies, and formulate reforms for rain-fed farming • Assess investment climate and privatization program, remove administrative obstacles to the informal sector, and develop a national competition policy • Develop a national framework for micro-finance, and enact micro-finance legislation and regulations • Review environmental and social impacts of existing oil contracts

10. GNU Basic Social Services Progress in 2005: • Finalized framework for health and developed national HIV/AIDS strategic plan • Increased government budget allocations to states and localities • New curriculum for primary and secondary schools is operational Priorities in 2006: • Review national policies and budgetary allocations • Education • Adopt strategies to increase enrolment in alternative learning • Construct/rehabilitate classrooms, water sources, and sanitary facilities • Expand health services, especially maternal & child, and nutrition • Invest in human resources for service delivery • Create mechanisms for NGO engagement in service delivery

11. GNU Infrastructure Progress in 2005: • Work on developing an overall policy and legal framework • Draft National Transport master plan prepared • Rehabilitation plans: rail (Babanusa-Wau); river (Kosti and Juba) Priorities for 2006: • Increased budget for infrastructure, in particular for power and electricity, • Review legal and regulatory frameworks • Develop National Transport Master Plans: • maritime, river, road and air sectors; electricity supply and pricing • Road, rail and river development • Roads in Darfur and other war-affected areas • Babanusa-Wau rail network • River transport between Kosti and Juba • Preparation and implementation of a rural roads program

12. GNU Livelihoods Progress in 2005: • Progress in establishing the IDP centre for strategic policies • Surveys of IDPs • Training on protection • Construction of way stations, monitoring of spontaneous returns • Mine Action Centers established Priorities for 2006: • Support sustainable returns through enabling adequate security, food and water • Establish community-based programs for IDPs and host communities • Sensitize authorities about protection issues • Increase HIV/AIDS awareness

13. GNU Information and statistics Progress in 2005: • Preparations for the population census: questionnaire, manuals, plans and budget finalized • National Population Council established • MDG Progress Report for Sudan released • Preparations for Sudan Household Health Survey Priorities for 2006: • Implementation of the Population Census Project • Completion of the Sudan Family Health Survey

14. Three Areas: special focus Progress so far, in governance reforms: • Southern Kordofan State : Interim Constitution and Council of Ministers • Abyei Protocol : establishment of Abyei Administration and Abyei Resettlement, Reconstruction and Development Fund; initiation of reconciliation and peace building Commitment to accelerate progress, including through: • Execution of 2006 budget plans, to support the full functioning of government and provision of basic services • Scale up the delivery of recovery assistance (EC/UNDP Recovery Project and Community Recovery Fund) and develop a locally led recovery strategy (Community Empowerment Fund) • Media development, including for communication channels to enable safe return of IDPs

15. GOSS: overall Considerable progress in implementation of the CPA, including: • Government of Southern Sudan established • Establishment of the Southern Sudan Legislative Assembly, Southern Sudan Council of Ministers, the Judiciary of Southern Sudan (Supreme Court and Courts of Appeal) and Southern Sudan State legislative assemblies and councils of ministers • Enactment of the Interim Constitution of Southern Sudan (ICSS) • Preparations of model interim state constitutions Significant gains at the cluster level, as will be highlighted now. But, delays in both establishing and operationalizing the CPA and insecurity on the ground means that implementation is behind schedule Need for accelerated efforts, and the enabling donor assistance, to effectively address the daunting challenges of peace and development

16. GOSS: Capacity Building and Institutional Development Progress in 2005: • Creation of a caretaker administration at the GOSS and state levels • Mission statements, goals, and objectives developed by most Ministries, with strong pro-development focus • Decision taken to contract-in capacity for all GOSS procurement Priorities for 2006: • Finalize legislation and policies for the civil service • Initiate the implementation of a decentralized administrative system and the intergovernmental fiscal system/framework

17. GOSS Governance and Rule of Law Progress to date, as noted above Priorities for 2006: • Adopt State Constitutions • Establish key independent institutions and commissions • Review statutory law and practices for gender bias; pass appropriate laws and regulations • Establish judiciary of Southern Sudan • Finalize regulatory framework for media

18. GOSS Productive Sectors Progress in 2005: • Ministries formed, and visions and structures laid out • One-year action plan for private sector development being developed • Formation of Southern Sudan Chamber of Commerce. Priorities for 2006: • Build capacity of the new ministries, and improve coordination • Develop a regulatory framework, assisted by findings from key assessments (investment climate assessment, value chain analysis) • Construct market centers in ten localities • Operationalize agricultural extension and veterinary services • Launch micro-enterprise development and micro-finance schemes • Conduct environmental impact assessments in key sectors • Accelerate public-private sector dialogue on the business climate

19. GOSS Basic Social Services Progress so far: • New strategy adopted by the Ministry of Education, Science and Technology • Review of health policy framework is underway • Sectoral programs for education and health developed and approved for MDTF co-financing Priorities for 2006: • Education: review and revise policies in light of the CPA, INC, ICSS • Expand basic education and infrastructure, improve gender equity, build local capacity to manage education, and strengthen secondary and tertiary education • Health • Plan for and invest in human resource development • Increase coverage of selected high-impact interventions (i.e. immunization and insecticidal nets for malaria prevention) • Scale up sustainable water and sanitation service delivery

20. GOSS Infrastructure Progress so far: • Intensive work on the foundations for an accelerated infrastructure program • Grant agreement signed (MDTF) in December for $200 million for infrastructure development in 2006 Priorities for 2006: • Rehabilitation projects: • Basic urban infrastructure and services in Juba and 10 state capitals • Emergency roads • Manage civil aviation activities in Southern Sudan • Conduct feasibility studies (cement factory at Kapoeta and hydro-electric dam at Fulla Falls; trunk road construction) • Provide basic electricity to at least 75 percent of towns and larger villages

21. GOSS Livelihoods In 2005, considerable number of IDPs returned in 2005 Priorities in 2006 as returns accelerate • Putting community-driven recovery programs in place – both basic social services and income generating opportunities – as well as protection, reconciliation, and capacity strengthening of local authorities and communities • Food security programs • Implement emergency DDR program focusing on child soldiers and women accompanying combatants • Formulate policies and programs for sale and control of small arms and light weapons, and establish an arms-control program

22. GOSS Information and statistics Progress in 2005: • Strategic plans for the Southern Sudan Centre for Census, Statistics and Evaluation (SSCCSE) within the Population Census Plan • Prepared and finalized population census tools and Full Project Proposal for MDTF support Priorities for 2006: • Technical review of the Statistical Act and establish the SSCCSE • Conduct the Sudan Household Health Survey in all states of Southern Sudan • Produce and disseminate MDG summary report • Produce basic economic statistics (e.g. consumer prices) • Develop Southern Sudan Statistical Master Plan

23. 2.Role of development assistance In Oslo, the international community pledged to a fruitful partnership with the Sudanese people in reconstruction and development. The GNU and GOSS welcome the ongoing increases in development assistance in recent years, and recognise the continuing need for life-saving humanitarian activities, especially in Darfur. There is a range of delivery mechanisms for external support, from externally contracted and managed activities, to the pooled funding of the MDTF which implements programs jointly with the GNU and GOSS with active country ownership.

24. Financing requests, 2006 • National budget projects external support for pro-poor programs of US$ 386 million, to complement own planned spending on pro-poor development, of $ 836 million, plus significant increases in current transfers to the northern states. • of which $173.2 million to be channeled through MDTF-N • GOSS request of US $300 million for development activities, supporting the strong pro-poor focus of the GOSS budget in 2006, wherein about 75 percent of total spending is being directed to pro-poor activities. • Donor disbursements constrained in 2005 by the slow start in establishing GOSS structures and systems, but are now expected to accelerate

25. Conclusions • Significant progress in 2005, despite the challenges • Progress set to accelerate in 2006 and beyond • Financing requests are large, but justified given the substantial increases in our own pro-poor spending to meet the commitments laid out in the JAM and the CPA • Subsequent SC sessions aim to deepen understanding and dialogue in key areas – especially budget and pro-poor spending, decentralisation, infrastructure and rural development