ANNEX 1

Outline for the Needs Assessment and Strategy Options Process

Below is the proposed outline for the reports that should be prepared for each of the 14 sectors identified. Those reports will serve as the basis for the main report which will be distributed to the Donors prior to the September/October 2003 Conference.

Please prepare a 12 to 15-pages report on your sector NO LATER THAN SUNDAY AUGUST 31. The reports must include the detailed budget for 2004 (template attached). Under the needs and priorities for the Sector, you will need to look at the medium term needs and priorities, and provide details on the financial needs and the priorities that should be addressed by the 2004 budget. To the extend possible, the sector teams should meet with the CPA and the Iraqi Provisional Governing Council to discuss and agree on the priority list and policy changes.

If you wish, please feel free to prepare longer draft Sector Reports that can be distributed as working documents at the October Donor Conference. If so, these should be completed no later than September 30. However, the main report for the meeting will be based exclusively on the information provided in the 12-15 page report mentioned above which needs to be ready by end August.

I.Introduction

Overall description of the situation

Brief trend analysis over the past 15-20 years

II.Current Status and Issues

  1. Summary Status of Sector with Indicators (if possible using the Millennium Development Goals, and including, where feasible, disaggregation of data by Governorates, gender, rural vs urban areas, and age)

Description/Identification of the most vulnerable

  1. Status of the Physical Infrastructure (if relevant)
  2. Human Resources
  3. Current Policy Framework (constraints, distortions, etc)
  4. Current Institutional Framework

III.Needs and Priorities for the Sector

For this section, provide priorities, objectives and benchmarks. Please make very clear the assumptions that you are using i.e. whether you aim to achieve: (a) pre-sanction situation (1990); (b) pre-war situation (March 2003); or (c) the Millennium Development Goals, indicating what can be achieved in 2004.

A.Medium and Long Term Needs and Policy/Institutional Changes

a.Broad Financial Needs over the 2004-07 period (these need not be overly detailed)

b.Proposed Policy Changes

c.Proposed Institutional, Legal, and Other Requirements

B.2004 Needs and Policy/Institutional Changes (including prioritization and clearly indicating assumptions for what you believe the sector can achieve by the end of 2004)

a.Financial Needs over the 2004 period (provide detailed financial needs for 2004 using format provided on the next page)

b.Proposed Policy Changes (to be initiated during 2004)

  1. Proposed Institutional, Legal, and Other Requirements (to be initiated during 2004)
  1. Cross Cutting Issues (if relevant)
  2. Gender issues
  3. Environmental issues
  4. Human rights
  5. Institutional capacity gaps and requirements

Table 1Preliminary 2004 Budget for Sector (template attached)

Information on Filling out Table 1 on Preliminary Calendar Year 2004 Budget

for X Sector

The CPA has prepared a budget for each of the sectors for the second half of calendar year 2003. While preparing the table attached, please make sure to look at their 2003 budget. You should obtain a copy of the 2003 budget from the various ministries. The template closely follows the budget headings used by the CPA in their 2003Budget Estimation.

In prioritizing the Investment Requirements, make sure that the most critical requirements are listed as first priorities.

Definition of Terms

The terms below are consistent with those used in the preparation of the second half 2003 budget that is being put together now by the CPA. It will be important to review this budget by sector as it will provide a basis for estimating salaries and other expenses.

Staff Expenditures: Expenditures on wages and benefits. Each ministry should be able to provide you with detailed information on wages and benefits within their Ministry.

Services Requirements: Expenditures on non-staff services (e.g., consultants, transport, etc.).

Goods Requirements: Expenditures on goods purchased.

Assets Maintenance: Expenditures to cover the cost of operating and maintaining capital assets.

Table 1 - Preliminary Calendar 2004 Budget for xx Sector

in US$ Million

2004 / 2005-07
Gross Expenditure
Recurrent Expenditure
Staff Expenditures
Services Requirements
Goods Requirements
Of which Strategic Consumables
(items needed during the rehabilitation period
(i.e., key drugs)
Assets Maintenance
Rehabilitation/Reconstruction
(required to bring sector back to March 2003 level)
Investment
(clarify what assumptions you have made vis-à-vis goals for 2004 e.g. to bring sector back to 1991 level, millennium goals etc. The prioritization for the Investments should be presented below under Financing Requirements.)
Gross Revenues
(e.g., electricity, where some tariffs may be collected)
Investment Requirements (Base Case)
Priority 1 i.e., Restore farm production of cereals and horticultural crops
Capital Costs (not included in the above)
Recurrent Costs (not included in the above)
Priority 2
Capital Costs (not included in the above)
Recurrent Costs (not included in the above)
Priority 3
Capital Costs (not included in the above)
Recurrent Costs (not included in the above)
Priority 4
Capital Costs (not included in the above)
Recurrent Costs (not included in the above)
Priority 5
Capital Costs (not included in the above)
Recurrent Costs (not included in the above)
Priority 6
Capital Costs (not included in the above)
Recurrent Costs (not included in the above)
Additional Investment Requirements (High Case)