Draft
SUDAN
Multi Donor Trust Funds
Oversight Committee Meeting
MDTF – NATIONAL
Minutes
December 17, 2006
Highlights/Decisions:§ MDTFs Operational Manual approved
§ Concept notes for analytic/policy work on Livestock Marketing and Gum Arabic approved. Concept note for S.Kordofan study to be revised and discussed with MOFNE before resubmission to OC.
§ The final WB-UN agreement for the Sudan MDTFs sent to MDTF donors for approval; will become effective on receipt of no-objection from the donors.
§ The broad parameters of the paper on an ‘Intervention Strategy for the Three Areas’ approved for implementation; with comments and recommendations from the OC meeting to be incorporated in the paper.
§ Census Project:
o Project restructuring approved by the OC-N, including revision of current GA if needed to cover operational costs.
o OC gave contingent approval to transfer of project oversight and implementation responsibilities to UNFPA.
§ Two IPPs approved:
o Microenterprise Project
o New National Currency Project
§ Proposed MDTF-N Budget and Staffing Plan for 2007 approved by OC
§ Regular OC-C meetings will take place quarterly – four meetings at approximate at interval interval of three months.
§ TS to organize a meeting in January ’07 to present the MDTF 2nd Progress Report, the conclusions and follow-up to the donors meeting in the Hague in December 2006 to review the global performance of MDTFs.
Action Points / Responsibility
Sudan MDTF Operational Manual
· MDTF-TS to publish the manual on the MDTF Sudan website after incorporating the OC-N comments. / MDTF-TS
Cocept note for South Kordofan study
· Re-submission to the OC-N for approval after consultation with MOFNE. / World Bank/MDTF-TS
WB-UN standard agreement for the Sudan MDTFs
· Donors’ HQs to approve the standard agreement. / MDTF Donors
MDTFs Communications Strategy:
· Make the PIC functional, ensuring accessibility to the public
· Strategy implementation: Monitor progress and inform OC-N donors . / World Bank/MDTF-TS
Addis Ababa workshop on Sudan MDTFs and World Bank policies and procedures
· Main workshop documents/outcomes to be circulated
· Workshop to be repeated in Khartoum and Juba in 2007 / MDTF-TS (N and S) in collaboration with GONU and GoSS ministries of finance
Thematic Groups
· Scope of thematic groups to be expanded, meetings to be called regularly with an advance agenda, and minutes issued following the meeting. Participation as open and inclusive as possible; TORs to be developed and at least one thematic group made fully operational before next OC meeting.
· Following thematic groups (led by relevant GONU ministry with support from a lead donor agency) to be given priority: Macroeconomic Management), Agriculture, and Health.
· Establish working relationship with the National Strategic Planning Council/Board / MoFNE, Donors and WB, and UN
MoFNE with lead donor agencies (invited by MOFNE)
MOFNE
The Three Areas Program:
· Emergency package for the Three Areas to be developed asap, then submitted for approval to the OC-N using streamlined review and approval process.
· Follow up discussion on strategy paper with partners and initiate design of the emergency package: meeting to be organized by Netherlands in the 2nd week of January 2007 in Khartoum, and by TS and MOFNE in Kadugli and Damazine. / MDTF-TS
MDTF-TS and UN, GONU/MoFNE and State Govts.
National Population Census Project:
· Reappraise/restructure the implementation and funding arrangements for the project
· Assumption of project oversight and implementation responsibilities by UNFPA contingent upon:
- Formal endorsement of this arrangement by the Population Census Council and MOFNE (GONU) and MOFEP (GOSS);
- Transfer of Govt. counterpart funds to project accounts of CBS and SSCCEE for 2007;
- Assessment of UNFPA’s implementation capacity on the ground;
- Submission of reliable cost estimates, with a detailed budget and cash flow estimates;
- A MoU to clearly assign tasks and responsibilities among different entities involved in the project;
- Finalization of a new GA between UNFPA and WB, endorsed by GONU/GOSS. / World Bank/MDTFs-TSs, UNFPA and GONU
-Population Census Council and UNFPA
-GONU/MoFNE
-UNFPA and UN RC .
-CBS/SSCCSE and UNFPA
- CBS/SSCCSE, UNFPA and MDTF-TS
-UNFPA and WB with GONU/GOSS
Approved IPPs:
· Microenterprise Project: take into consideration the OC-N recommendations in preparing the FPP. Submission of FPP to be submitted to OC-N as soon as it is ready.( target date- mid-Feb 2007)
· New National Currency Project: take into consideration the OC-N conditions when developing the FPP. In principle, FPP to be submitted to the next OC-N meeting as soon as possible using streamlined approval procedures. Project appraisal contingent on submission of a currency exchange plan endorsed by IMF. / World Bank/MDTF-TS and the Central Bank of Sudan
World Bank/MDTF-TS and Central Bank of Sudan
Regular OC-N meetings:
· Next regular OC-N meeting to be held before end-February, 2007. / MDTF-N TS
SUDAN
Multi Donor Trust Funds
Oversight Committee Meeting
MDTF – NATIONAL
Minutes
December 17, 2006
The 3rd meeting of the Oversight Committee (OC) for the Sudan National Multi Donor Trust Fund (MDTF-N) was held on December 17, 2006, in Khartoum. The meeting was chaired by Sheikh Elmak, Under-Secretary of the GONU Ministry of Finance and National Economy (MoFNE) and co-chaired by Corina Van der Laan, Deputy Head of Mission of the Embassy of the Netherlands in Khartoum. The Attendance List (members and observers) is attached as Annex 1.
I. Agenda and Minutes
a. The Agenda was approved (Annex 2). A proposal for a potential project to support the Media was introduced for consideration under AOB.
b. The Minutes of the OC-N meeting, held on August 28, 2006, were approved, with the EC noting the following correction: the EC Secondee for the Education Sector was based in Juba, not in Khartoum. The final Minutes are attached as Annex 3.
II. Updates
a. The MDTFs Operational Manual was approved with the following items requiring a clearer explanation:
· Role of TS in assessing project proposals and preparing documentation for the OC-N meetings;
· Role of State Govts;
· Role of UN agencies as direct recipients of MDTF resources to implement projects.
b. Sector Policy Notes:
· The concept note for the S.Kordofan study requires further discussion with the GONU/MoFNE, before resubmission to OC-N.
· Regarding the concept notes for Livestock Marketing and Gum Arabic studies (Annex 4), the proposed work should take into consideration the importance of these commodities in Sudan exports and the fact that these sectors affect thousands of households. It was recommended: (a) to consult with the GONU/MoFNE and other partners preferably using the Thematic Groups; (b) focus on market structures, pricing policies (producer and local/world markets), regulatory environment, and transparency of revenue flows; and, (c) take into account findings of on-going studies and policy changes/reforms in these areas.
c. The Progress Report on the MDTFs Communications Strategy, (dated Dec 6, 2006) and the related ppt presentations are attached as Annexes 5A to 5E. Key comments/suggestions and clarifications include: (a) Need for regular monitoring of progress to the OC-N; (b) establish the PIC, possibly in partnership with the Faculty of Economics/University of Khartoum, (c) the Communications Officer for MDTF-N is expected to cover both North and South, while the recruitment of a Communications and Public Affairs Officer for the MDTFs (based in Juba under consideration) proceeds; (d) the MDTF website is regularly updated with low user stats, which requires a marketing plan with performance indicators. (e) proposed newsletter: need to ensure use of accessible language to the public; (f) media coverage and press releases: insufficient analysis and motivation, as well as inaccuracies, it demands continuous TS attention. Press releases are now translated into Arabic, and the MDTFs brochures (both North and South) will soon be sent out for wide circulation (both in English and Arabic).
d. Donors’ meeting held in Netherlands, the Hague, on Dec 7-8, 2006 on draft evaluation[1] of MDTFs worldwide.
The report focuses on the MDTFs administered by the WB, less on those managed by the UN. The findings were discussed; inputs and corrections will be incorporated. The report will be finalized in Jan-Feb 2007, incl. recommendations to be translated into actions. The participants did not agreed to establish a 2nd (UN) window as a general rule, since it was felt that the recipient Government should decide on the MDTF design. Regarding a second UN window within the Sudan MDTFs, both GOSS and GONU would further assess the proposal as it is the prerogative of the recipient governments to establish the funding facilities for post-conflict recovery and development.
A meeting on the Sudan MDTFs preceding the donor conference on Dec 6 acknowledged the efforts made so far to improve performance, and identified the main gaps (e.g. WB-UN agreement). Follow up meeting(s) will be organized in Sudan to discuss the recommendations of the evaluation and the 2nd MDTF Progress Report.
At the conference the head of the WB delegation presented a set of measures to be implemented by the World Bank to help improve the performance of the MDTFs in the future. In early 2007, the World Bank will propose procedures to ensure quick impact activities, incl. writing an analysis on rapid delivery vs. risks. Donors are urged to look at the proposal and send their comments to their Executive Directors at the WB Board, which will discuss the proposals in Spring 2007.
e. The World Bank-UN standard agreement for the Sudan MDTFs (Annex 6) has been finalized. It has been sent to the MDTF Donor HQs for approval. Once effective, UN agencies will finalize grant agreements with the Bank thus minimizing delays in accessing HDTF resources.
f. A workshop on World Bank/MDTF operational policies and procedures was held from Nov 27 to Dec 6, 2006 in Addis Ababa. The event was held by the Bank and included the participation of GONU and GoSS officials in charge of the MDTFs’ projects implementation, as well as UN agencies and NGOs. It was recommended that the main documents of the workshop be circulated and the workshops repeated in Khartoum and Juba during 2007.
g. On the Thematic Groups, the following recommendations were made: (a) Expand focus beyond the MDTF-N project’s implementation and include other projects under the JAM umbrella; (b) ensure regular meetings with a clear agenda; (c) establish links with the National Strategic Planning Council (now developing the 5-year plan); (d) organize mechanism that allows donors to participate in discussions on sector policies and macro issues (as it happens in the South with the Budget Thematic Groups). It was agreed to start with the groups on Macro-economics, Agriculture and Health.
III. MDTFs Civic Engagement in Sudan
The strategy paper and ppt presentation are attached as Annexes 7A and 7B. The OC discussion highlighted the following: (a) Development Marketplace (DM),needs to be properly advertised with effective dissemination of procedures; (b) the need to develop a one-year plan of action for civil society engagement; (c) NGOs should be part of a civil society development framework; (d) special attention is to be paid to strengthening the capacity of local NGOs, including the development of specific support mechanisms and stronger collaboration between international NGOs and local ones.
IV. MDTF-N Portfolio
a. The Three Areas: An intervention strategy paper and related ppt. presentation are attached as Annexes 8A and 8B.
§ Comments and recommendations concerning the Strategy Paper included: (a) the MDTF-N project is only one of the funding sources for the Three Areas; need to collect information on other funding sources (e.g. GONU, bilaterals, UN, NGOs, etc.); (b) State Govts. to be explicitly included in the development of the IPP, and their capacity to be strengthened; (c) potential role of the private sector to be further explored (e.g. in Vocational Education); (d) Basic Education to be added[2]; (e) Abyei project(s) could be implemented by either UNICEF or UNDP (as there is no Govt. in place); (f) project implementation should start before the rainy season; (g) further work is needed on humanitarian de-mining vs. clearing roads from mines to ensure rapid actions on de-mining roads to allow construction to begin.
§ The OC agreed to consider following components and actions:
o An Emergency package (similar to the RIEP in the South), for which an FPP needs to be developed asap.
o An IPP for the Development component: need to identify participating institutions, and establish links with the Assessment and Evaluation Commission’s working group on the Three Areas.
o A meeting with involved stakeholders to be organized in the 2nd week of January 2007 to further discuss the strategy paper and provide guidance for the emergency package.
§ Financial transfers from the Federal Govt. to the Three Areas jurisdiction: There are three types of financial transfers from the federal level to the Three Areas States, namely, (a) special transfers for reconstruction and development, in accordance with the CPA wealth sharing protocols for the B.Nile and S.Kordofan States, as well as Abyei; (b) the 2% share of oil-producing states in the oil revenues; and (c) transfers through the National States Support Fund (NSSF), as part of the statutory allocations to the Northern States. Annex 9 shows the transfers in 2005 and 2006. The co-chair asked USAID, as chair of the AEC working group on Wealth Sharing, to look further into the documents and figures presented.
b. MDTF-N
§ Technical Assistance Facility: (a) a new Procurement Officer is being recruited for the TAF Unit; and (b) the TAF Unit is to be restructured to encompass a comprehensive national capacity building program on economic governance with a substantial financial contribution by MOFNE ($40 million); the proposed restructuring is being discussed by the World Bank Institute (WBI) and MOFNE. The OC-N will be informed of the results of these discussions and the restructured projects.
§ The Census project – Briefing points presented by UNFPA are attached as Annex 10.
o Structural issues: At the project design stage, UNFPA declined direct implementation. The project has complex institutional arrangements: several funding mechanisms (MDTF N+S, bilateral and UN); budget implementation entrusted to two UN agencies (UNFPA and UNOPS); World Bank fiduciary responsibility managed by UNOPS (in charge of Procurement), while UNFPA has the technical advisory role. Moreover, the World Bank does not have expertise in the Census domain. The World Bank was recently requested to transfer oversight of the project to UNFPA for direct execution. An endorsement letter was requested from the Population Census Council by the World Bank as a pre-condition to proceed with the amendment of the GA.