Managing aid in Rwanda: current structures and procedures Aid on budget Workshop

1. Managing aid in Rwanda: current structures and proceduresAid on budget Workshop

2. Presentation Outline • Overview of evolving policy context and aid management structures • Overview of Rwanda’s Aid Policy • Institutional set-up for aid effectiveness • Some key challenges • Aid management procedures • Aid management information systems-DAD

3. Evolution of policy context and structures for aid management Implementation and eval. of PRSP1 Development of EDPRS andstrenghtening sector strategies Policy and planningframework Aid Policy Annual high-level GoR and Development Partners Meeting Forums for dialogueand coordination Budget Support Harmonisation Group DPCG and sector clusters CEPEX External Finance Unit (MoF) Institutional frameworkfor aid management … with support from AidCoordination Unit (UNRCO)

4. Rwanda’s Aid Policy: A national vision for aid and its effectiveness • What is the Aid Policy? • National policy developed by GoR and approved by Cabinet (July 2006) • Best seen as a set of “guiding principles” for the delivery of aid in Rwanda • A vision for the implementation of the PD • How was it developed? • GoR-led process, with limited external assistance to the process and document • Extensive consultation across GoR and development partners over > 1 year

5. Rwanda’s Aid Policy: Key features • Clear objectives that fit with Paris Declaration. • Comprehensive: addresses all types of assistance. • Sets out GoR preferences: • Preferred aid modalities: General Budget Support > Sector Budget Support > Projects. • All aid to be on-budget and on-plan. • Increase use of GoR systems in delivery of aid. • Pooling of funds, and delegated cooperation, to be encouraged. • Intra-GoR division of responsibilities clarified. • The need for further strengthening of GoR planning, PFM and aid management systems. • Outline provisions for implementation, backed up with a more detailed implementation plan.

6. Institutional framework for implementation of Aid Policy Aid Policy Implementation Committee MINECOFIN, Office of the President, PRIMATURE, MINAFFET, MINALOC, CNLS, HIDA  Provides high-level oversight and strategic direction Technical Secretariat External Finance Unit, MINECOFIN  Works with GoR bodies and DPs to implement the interventions identified in implementation plan DevelopmentPartners GoREntities LINE MINISTRIES, LOCALADMINISTRATIONS, andSEMI-AUTONOMOUS BODIESwork with Secretariat to improveintra-GoR division of labour,strengthen GoR systemsand human resources OFFICIAL DONORS integrate aspects of the Aid Policy in theirplanning; maintain dialogue with GoR NGOs collaborate with MINALOC andMINECOFIN to ensure assistance isprovided in an effective manner

7. A new framework for M&E and dialogue with partners, aligned to the EDPRS

8. Some key challenges… • Need to ensure that Aid Policy is mainstreamed across GoR institutions (“project shopping” persists). • Need to think about how we assess degree of alignment with EDPRS and sector strategies. • Some donors reluctant / unable to adapt despite advances on part of GoR. • Need to ensure stronger GoR lead in capacity development for aid management. • Further progress on the SWAp agenda (must come from the sectors themselves).

9. Initial Conception Proposals Negotiation Agreement Implementation Evaluation The aid management chain: Aid policy provisions- step 1. • Line ministry, district or government body seeking assistance undertakes initial discussions with potential donors with the aim of developing initial ideas. • Concern that ideas are government-owned and respond to priorities identified in sector strategic plans. • At this early stage, negotiations are not undertaken, nor are agreements signed.

10. Initial Conception Proposals Negotiation Agreement Implementation Evaluation Aid policy provisions- step 2. • Line ministry, district or government body writes to MINECOFIN with details of proposal • MINECOFIN examines proposal for fit with national policies and priorities • Line ministry (or similar GoR body) retains responsibility for ensuring that proposal is technically sound throughout • MINAFFET consulted; may raise objection

11. Initial Conception Proposals Negotiation Agreement Implementation Evaluation Aid policy provisions- step 3 • Line ministry, district or government body meets with MINECOFIN and MINAFFET to agree on GoR position in negotiations. • Negotiations involve relevant line ministry, district or Gvt body, MINECOFIN, MINAFFET and donor(s). MINECOFIN provides its expertise in negotiation at this stage

12. Initial Conception Proposals Negotiation Agreement Implementation Evaluation Aid policy provisions- step 4 • MINECOFIN oversees fulfilment of agreement effectiveness (through its External Finance Unit) • Agreements between GoR and donor organisation are signed by MINECOFIN for the GoR (unless donor requires MINAFFET signature) • Details of agreement recorded on relevant GoR systems

13. Initial Conception Proposals Negotiation Agreement Implementation Evaluation Aid policy provisions- step 5 • The line ministry or other GoR body will normally be responsible for overseeing implementation of an assistance package. • Implementing body should engage in regular dialogue with MINECOFIN / CEPEX, particularly where issues arise requiring attention (e.g. delays to disbursement)

14. Initial Conception Proposals Negotiation Agreement Implementation Evaluation Aid policy provisions- step 6 • For project support: line ministry or other GoR body overseeing implementation works with CEPEX to ensure follow-up • Budget support: line ministry is responsible for the collection, aggregation and dissemination of appropriate performance data to donors. Such data is made available to MINECOFIN for the APR.

15. Aid management database- DAD • DAD is a web-based tool designed for ODA data collection, tracking, analysis, and planning. • DAD is designed for use by national governments and the broader assistance community (bilateral donors, multilateral donors, IFIs, etc.). • DAD Rwanda was launched in March 2006.

16. Why a DAD in Rwanda? • Launched in March 2006, DAD Rwanda was developed with the aim to achieve the following: • Enable the GoR to drive the processes of aid management by: • Establishing a single repository of all ODA in Rwanda and replace old, inefficient systems • Use the tool to monitor ODA and its utilisation • Enable the GoR to do “gap analyses”, facilitate planning process and resource mobilisation • Institutionalise transparency & accountability between GoR & DPs

17. Process and type of data • Project level ODA data • Title, Sector, Location, Donor, Implementer, Nat’l Counterpart, Commitment, Disbursement, Modality, etc.. • Donor agencies report via the web interface (1 Focal Point per agency)

18. Linkages to budgeting process National Budget Development Budget Recurrent Budget Interface Interface BudgetMaster DAD Rwanda

19. Selected key lessons • Mainstreaming of an Aid Policy requires extensive input and ownership over the policy from across government at both technical and political levels. • Institutions coordinating aid need clear mandates (duplication results in overlap and confusion). • Source of data during the aid management information “chain” should be clarified and responsibilities defined.

20. Thank you