DAD Rwanda, Country Ownership and the Donor Performance Assessment

Framework

Nairobi, KENYADAD Community of Practice

January , 2013Marie-Ange INGABIREExternal Finance Unit (EFU)Ministry of Finance and Economic PlanningRWANDA

Outline Why DAD for Rwanda and its Benefits ? Process of developing DAD for Rwanda DAD in the Aid Coordination in Rwanda

• Donor Performance Assessment Framework (DPAF)• Division of Labor (DOL )• Official Development Assistance Report (ODA)

Strengthening DAD Next steps (pipeline) Challenges and lessons learnt

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Pre-requisites for a DAD Existence of an aid coordination architecture that

brings together the Government and Development Partners to ensure effective support to national development processes.

A government policy on the management of aidand the Rwanda Aid Policy that clearly sets out the government’s preferences in terms of the type of aid it wishes to attract, and the processes to be followed in the management of external assistance.

Defining the DAD Both Government and Development

Partners need buy in and agree on the following:

1. Agree on the necessity of the system2. Have a common understanding of how

the system should work3. What type of inputs are needed4. Which outputs are expected and how

accurate they have to be (quality indicators)

5. Who are the beneficiaries

Why DAD for Rwanda? Launched in March 2006, DAD Rwanda was

developed with the aim to achieve the following main objectives: 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. Enable the GoR to do “gaps analyses”, facilitate planning

process and resource mobilisation. Enable the GoR to plan, monitor and account for the use of

resources in an effective manner Institutionalise transparency & accountability between GoR &

DPs. SUPPORT THE IMPLEMENTATION OF THE RWANDA AID

POLICY. 5

Benefits Of DAD To track the flow of development assistance to

Rwanda. To Share information and reduce transaction costs in the collection of information on ODA. To enhance transparency and accountability

of the development assistance to Rwanda To allow the Government to coordinate the

development efforts, ownership of the development process

To ensure that aid flows in accordance with government priorities to where the needs are greatest.

To support and improve the formulation of national planning and budget

Development Assistance Database – centralizing Aid information

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DAD in the Aid Coordination in Rwanda

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DAD

Aid Effectiveness and Mutual Accountability:

DPAF

Planning and

Budgeting

Accountability and

Transparency: ODA Report

Supporting implementation

of the DoL

Donor Performance Assessment Framework (DPAF)

A Joint tool for monitoring of donor progress and performance against national and international commitments (Paris Declarations, Accra Agenda for Action, Busan etc.) on the quality of development assistance.

Need for mutual reviews of performance against commitments on aid effectiveness at the country level.

DPAF’s 23 Indicators drawn from the Paris Declaration Indicators on quality of aid– and Indicators agreed on at country level 9

Example DPAF: Use of national Systems and Institutions for strengthened ownership, sustainability and reduced transaction costs

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Example DPAF: Budget support Indicators

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Donor Performance Assessment Framework (DPAF) - Process

DPAF is undertaken on the basis of data entry in the Development Assistance Database (DAD). DAD incorporates the DPAF indicators.

DPAF exercise commenced in mid-July with a training session on the DPAF in the DAD. Data entry to be completed by mid-August/end August.

Verification of data undertaken by MINECOFIN staff.

Bilateral discussions with DPs held to seek clarification and ensuring appropriate data filling for the DPAF exercise.

DPAF preliminary results require further verification in ensuring correctness of the DPAF report and analysis and will form a basis for DPCG dialogue 12

DAD Rwanda and the DoL

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Donor Practices of intervening in a wide range of sectors

Results into high transaction costs and administrative burdens for recipients

Makes coordination difficult

Compromises aid effectiveness

PD and AAA urge recipients and DPs to agree on a division of labor framework to enhance aid effectiveness

Rationale of DoL in Rwanda Donor Preferences tended to prevail when

determining sectors of intervention

Risk of under-investment in productive sectors threatening to undermine Implementation of the EDPRS

Overcrowding of some sectors leading to increased transaction costs

DAD Rwanda and the DoL

Division of Labour in Rwanda was first discussed in the Development Partners Retreat (DPR) in February 2010 presented and endorsed at the DPCG meeting in July 2010

The DoL principles called for more appropriate distribution of DPs’ support across 3 sectors in line with the national priorities.

The effective implementation of the DoL requires analysis of sector financing, nature and modality of DP engagement in any given sector as recorded in DAD.

Currently the DAD sector classification is aligned to the DoL sector classification drawn from the Economic Development and Poverty Reduction Strategy II (EDPRSII)

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Donor Interventions before DoL proposal in 2010

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Division of Labor (DoL) for EDPRS2 Sectors : Aug 2013

DPs

Education (Including TVET)

Agriculture (Including feeder Roads

Health

Transport

Water and Sanitation

Energy

Private Sector D.& Youth

Social Protection

ICT

JRLO

Environment

Urban & RuralSettlement

Governance &Decentralization

PFM (including Economic Governance)

Financial sector

Belgium B   X     X       B     X    Germany X           X           X S S Netherlands

        S   X     X     X    

Sweden                              UK X B           X     S     S X USA X B X       X   (x

)       S    

AfDB       X S X X               S EC   X       X   B         X S  EIB         X X                 X WB   X       X   B       X      Switzerland

  X X   S   X                

Global Fund

    X                        

France X   S     X                  Luxembourg

    X               X        

Japan S X     X X                  Korea X X S           X     S      China S   X X   X                  India   S       X X                Kuwait Fund

    X X   X           S      

Saudi Fund

    X X   X S                

BADEA       X X X S                OPEC Fund

      X S X X                

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Example DPAF: DoL Implementation Indicators

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DAD Rwanda and the Annually ODA Report

The ODA Report is based on the data on ODA captured in the Development Assistance Database (DAD).

Quality of data used in this report largely depends on the accuracy and relevance of information reported by DPs in the DAD

In order to ensure quality of data provided in the DAD, the Government undertakes verification processes at relevant level, mostly through the DPAF process

Data Submitted for the Global Monitoring Framework

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Data Entry• DAD Focal Point

at each donor• Quarterly

reporting

Verification• MINECOFIN

reviewing data• Quality

Assurance

Analysis and Reporting• ODA Report• DPAF Report• Any other reports

on demand

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Current DAD Reporting Procedure

Forum for Accountability and Dialogue Development Partners Coordination Group

To provide a forum for regular dialogue on co-ordination, harmonisation and alignment, to monitor and assist implementation of the EDPRS and to review progress made by development partners against their Paris Declaration commitments.

Development Partners Meeting (DPM) Biennial high-level forum on development cooperation, seeking

at political level engagement. Development Partners Retreat (DPR)

Annual senior-level 2-days meeting to review progress with relevant stakeholders

Sector Working Groups Monitor relevant EDPRS progress and sector-level DPAF

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DAD in Budget and Planning -Strengthening DAD (in Testing

phase ) Ensure DAD as the GoR’s repository of information;

Ensure a reduction of multiple data requests from GoR to DPs;

Ensure DAD capture relevant and usable information on external aid to support national planning, budgeting, execution and monitoring process;

Enhance transparency and accountability (ODA Report)

Establish linkages and complementarities with SmartFMIS

(Finance Management Integration System for Budgeting, planning and Accounting for Rwanda Domestically and External Revenues)

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Integration of DAD with SmartFMIS

Integration of DAD with Smart FMIS (currently in testing phase )

DAD integrating GoR’s Chart of Accounts; DAD planning/commitment information feeding into

budget module; DAD disbursement information feeding into

revenue module; DAD direct payment information feeding into

expenditure module;

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Integration of DAD with SmartFMIS

Deve

lopm

ent A

ssist

ance

Dat

abas

e (D

AD)

GoR’

s Sm

art F

MIS

MTEF Module3 year projections

Project Module: Integration of GoR’s Chart of

Account

Actual Disbursement

Direct Payment

Direct Execution

Budget Module

Revenue Module

Cash Books

GL

Next Steps (in pipeline) Encourage the DPs to use of the delivered Off-line Module to

ease the use of DAD Continue to develop other useful modules that will increase

usage of DAD (e.g. the NGO module was implemented in DAD but the Gor is looking at how the module will get Data from NGOs)

Produce periodic reports for publication to make use of peer pressure amongst donors.

Continued roll out of access to Line Ministries As a pilot, Rwanda has agreed to explore the

possibility of automatic data exchange between the IATI Information and DAD

Eventual relocation of DAD to be hosted internally25

Challenges

Significant lack of data on ODA flows not being channelled through government, including data from NGOs (in Plan).

Not all DPs report through DAD (i.e. emerging donors) Encouraging Donors to report ODA along the GoR fiscal

year. Some DPs do not report on time. Contractual/Financial responsibilities of the DAD after

phase-out of UNDP support

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Lessons Learned

High-level of Government and Donors commitments

The Aid Policy that clearly sets the GoR’s preferences in terms od Aid effectiveness

Strong Government led process (e.g. DPAF, DPCG, Sector Working Groups)

Share experiences with other countries Target setting – inclusive and consultative Clear annualized individual provider targets

for DPAF, drawn from PD targets Elements of joint responsibilities at sectorial

and national level 27

Thank you for your kind attention!

Please visit our Development Assistance Database

http://dad.synisys.com/dadrwandaAnd our Development Partners Website

www.devpartners.gov.rw

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