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Eighth Six-month Progress Report on Activities Implemented under the United Nations Development Group Iraq Trust Fund (UNDG ITF) of the International Reconstruction Fund Facility for Iraq (IRFFI) Report of the Administrative Agent of the UNDG ITF for the Period 1 January to 30 June 2008 Multi-Donor Trust Fund Office Partnerships Bureau United Nations Development Programme November 2008

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  • Eighth Six-month Progress Report on Activities Implemented under the United Nations Development Group Iraq Trust Fund (UNDG ITF) of the

    International Reconstruction Fund Facility for Iraq (IRFFI)

    Report of the Administrative Agent of the UNDG ITF for the Period 1 January to 30 June 2008

    Multi-Donor Trust Fund Office Partnerships Bureau

    United Nations Development Programme

    November 2008

  • i

    UNDG IRAQ TRUST FUND OF THE INTERNATIONAL RECON-STRUCTION FUND FACILITY FOR IRAQ

    PARTICIPATING UN ORGANIZATIONS

    ESCWA Economic and Social Commission for Western Asia FAO Food and Agriculture Organization of the United Nations ILO International Labour Organization ITU International Telecommunication Union OHCHR Office of the United Nations High Commissioner for Human Rights UN/DESA United Nations Department of Economic and Social Affairs UN DPA/EAD United Nations Department of Public Affairs/Electoral Assistance Division UN-HABITAT United Nations Human Settlements Programme UNDP United Nations Development Programme UNEP United Nations Environment Programme UNESCO United Nations Educational, Scientific and Cultural Organization UNFPA United Nations Population Fund UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund UNIDO United Nations Industrial Development Organization UNIFEM United Nations Development Fund for Women UNODC United Nations Office on Drugs and Crime UNOPS United Nations Office for Project Services WFP World Food Programme WHO World Health Organization

    CONTRIBUTING DONORS ASIA Italy Australia Luxembourg India Netherlands Japan Norway New Zealand Spain Republic of Korea Sweden Turkey EUROPE United Kingdom Belgium Denmark MIDDLE EAST European Commission Kuwait Finland Qatar Germany Greece NORTH AMERICA Iceland Canada Ireland United States

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    Abbreviations and Acronyms COSIT Central Organization for Statistics and Information Technology DoEd Directorate of Education DPA Department of Political Affairs (United Nations) EAD Electoral Assistance Division (United Nations) ESCWA Economic and Social Commission for Western Asia FAO Food and Agriculture Organization of the United Nations GoI Government of Iraq ICI International Compact with Iraq IDP Internally displaced person IECI Independent Electoral Commission of Iraq IHEC Independent High Electoral Commission ILO International Labour Organization IRFFI International Reconstruction Fund Facility for Iraq ISRB Iraqi Strategic Review Board ITF Iraq Trust Fund LOA Letter of Agreement MDG Millennium Development Goal MDTF Multi-Donor Trust Fund MoA Ministry of Agriculture MoCH Ministry of Construction and Housing MoDM Ministry of Displacement and Migration MoEd Ministry of Education MoEl Ministry of Electricity MoEn Ministry of Environment MoF Ministry of Finance MoH Ministry of Health MoHESR Ministry of Higher Education and Scientific Research MoLSA Ministry of Labour and Social Affairs MoMPW Ministry of Municipalities and Public Works MoPDC Ministry of Planning and Development Cooperation MoT Ministry of Trade MoWR Ministry of Water Resources MoYS Ministry of Youth and Sports NGO Non-governmental organization PHC Primary health care TOR Terms of Reference UNAMI United Nations Assistance Mission for Iraq UNCT United Nations Country Team UNDG United Nations Development Group UNDP United Nations Development Programme UNEP United Nations Environment Programme UNESCO United Nations Educational, Scientific and Cultural Organization UN-HABITAT United Nations Human Settlements Programme UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund UNIDO United Nations Industrial Development Organization UNIFEM United Nations Development Fund for Women UNOPS United Nations Office for Project Services WFP World Food Programme WHO World Health Organization

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    Definitions1 Allocation UNDG ITF – Amount earmarked to (a) particular Sector(s) and/or specific Participating UN Organiza-tion(s) to fund approved projects. World Bank ITF – Amount to be disbursed to the vendor or the Iraqi line ministry implementing an ap-proved project for the actual costs of the goods received or services delivered. Approved Project UNDG ITF – A project that has been approved by the Iraqi Strategic Review Board (ISRB) and the UNDG ITF Steering Committee for which a project document has subsequently been signed. World Bank ITF – A project for which a grant agreement has been negotiated and signed by the World Bank ITF and the recipient. Donor Pledge An amount indicated as a voluntary contribution by a donor. (Pledges are not included in the financial statements. Financial reports will report on legally binding donor commitments and deposits to the UNDG ITF and the World Bank ITF.) Donor Commitment A legally binding commitment of a contribution to the International Reconstruction Fund Facility for Iraq (IRFFI) for a specific amount over a specific time frame, formalized through a Letter of Agreement (in the case of the UNDG ITF) or an Administrative Agreement (World Bank ITF). Donor Deposit Cash deposit received by the UNDG ITF or the World Bank ITF. Project Commitment The amount for which a legally binding project contract has been signed. Project Disbursement The amount paid to a vendor or entity for goods received, work completed and/or services rendered (does not include unliquidated obligations). Project Expenditure UNDG ITF – Amount of Project Disbursement plus unliquidated obligations related to payments due for the year.

    1 Common definitions agreed between the UNDG ITF and the World Bank ITF for use in IRFFI reporting.

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    CONTENTS ABBREVIATIONS AND ACRONYMS .............................................................................................................. II 

    DEFINITIONS ...................................................................................................................................................... III 

    EXECUTIVE SUMMARY ..................................................................................................................................... 1 

    1.  IRFFI/UNDG ITF STRATEGIC FRAMEWORK AND BENCHMARKS ............................................. 11 

    2.  PROJECT APPROVAL AND IMPLEMENTATION UPDATES ........................................................... 12 

    2.1.  ROLE OF THE UNITED NATIONS ................................................................................................................ 12 2.2.  UN IRAQ ASSISTANCE STRATEGY FOR 2008-10 ....................................................................................... 12 2.3.  UNITED NATIONS COUNTRY TEAM COORDINATION STRUCTURE ............................................................. 13 2.4.  NEW UNDG ITF GOVERNANCE ARRANGEMENTS ................................................................................... 13 

    2.4.1.  UNDG ITF Steering Committee ....................................................................................................... 13 2.4.2.  UNDG ITF Steering Committee Support Office (SCSO) .................................................................. 14 2.4.3.  UNCT Baghdad Policy Group (BPG) .............................................................................................. 14 2.4.4.  Sector Outcome Teams (SOT) .......................................................................................................... 14 2.4.5.  Peer Review Group (PRG) ............................................................................................................... 14 2.4.6.  Iraq Strategic Review Board (ISRB) ................................................................................................. 15 2.4.7.  Iraq Ministry of Planning and Development Cooperation (MoPDC) .............................................. 15 2.4.8.  Administrative Agent/Multi-Donor Trust Fund (MDTF) Office ....................................................... 15 2.4.9.  New Sector Outcome Team (SOT) Structure .................................................................................... 15 

    2.5.  UNDG ITF PROJECT APPROVAL PROCESS ............................................................................................... 17 2.6.  MONITORING AND EVALUATION .............................................................................................................. 18 

    3.  PROJECT APPROVAL AND IMPLEMENTATION UPDATES ........................................................... 18 

    3.1  PROJECT APPROVAL STATUS ..................................................................................................................... 18 3.2  PROJECT IMPLEMENTATION STATUS .......................................................................................................... 19 

    3.2.1. Contract Commitment & Disbursement Project Implementation Progress ......................................... 20 3.2.2  Projects in the Pipeline ...................................................................................................................... 21 

    3.3  TIMELINE EXTENSIONS ............................................................................................................................. 23 3.3.1. Operationally and Financially Closed Projects and Joint Programmes .............................................. 23 

    3.4  IMPLEMENTATION CHALLENGES ............................................................................................................... 25 3.4.1  Capacity development ........................................................................................................................ 25 3.4.2  Policy Development ........................................................................................................................... 25 3.4.3  Availability of Adequate Funding ...................................................................................................... 26 

    3.5  MONITORING, EVALUATION AND REPORTING ........................................................................................... 26 3.6   ASSESSMENTS, STUDIES, AND EVALUATIONS ........................................................................................... 26 3.7  PROJECT IMPLEMENTATION HIGHLIGHTS .................................................................................................. 28 

    4.  SECTOR OUTCOME TEAM REPORTS .................................................................................................. 31 

    EDUCATION SECTOR ............................................................................................................................................ 32 WATER AND SANITATION SECTOR ...................................................................................................................... 42 HEALTH AND NUTRITION SECTOR ....................................................................................................................... 48 HOUSING AND SHELTER SECTOR ......................................................................................................................... 56 FOOD SECURITY: AGRICULTURE AND FOOD ASSISTANCE SECTOR ...................................................................... 62 PROTECTION SECTOR .......................................................................................................................................... 66 GOVERNANCE SECTOR ........................................................................................................................................ 72 ECONOMIC REFORM AND DIVERSIFICATION SECTOR .......................................................................................... 80 

    FINANCIAL PERFORMANCE .......................................................................................................................... 85 

    5.  FINANCIAL PERFORMANCE .................................................................................................................. 86 

    5.1.  SOURCES, USE, AND BALANCE OF UNDG ITF FUNDS ............................................................................. 86 5.2.  DONOR CONTRIBUTIONS .......................................................................................................................... 87 

    5.2.1.  Earmarking under the UNDG ITF ................................................................................................... 88 5.3.  EARNED INTEREST ................................................................................................................................... 90 

    5.3.1.  UNDG ITF-Administrative Agent (Fund)-Earned Interest ............................................................... 90 

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    5.3.2.  Interest Earned by Participating UN Organizations ........................................................................ 91 5.3.3.  Allocation and Earmarking of Interest Earnings to Sector Outcome Teams for Funding ................ 92 

    5.4.  TRANSFER OF FUNDS TO IMPLEMENTING PARTICIPATING UN ORGANIZATION ........................................ 94 5.4.1.  Balance of Funds Available .............................................................................................................. 95 

    5.5.  EXPENDITURE ........................................................................................................................................... 99 5.5.1.  Analysis of Expenditure for the Period from 1 July 2004 to 30 June 2008 ...................................... 99 

    5.6.  CONTRACTS ............................................................................................................................................106 5.6.1.  Contract Commitments and Disbursements ....................................................................................106 5.6.2.  Contract Awards ..............................................................................................................................109 

    5.7.  COST RECOVERY .....................................................................................................................................110 5.8.  TRANSPARENCY AND ACCOUNTABILITY OF THE UNDG ITF OPERATIONS .............................................111 5.9 FUTURE PLANS .............................................................................................................................................111 

    FINANCIAL ANNEXES .....................................................................................................................................114 

    ANNEX 1A. TOTAL EXPENDITURE INCURRED AGAINST APPROVED AND FUNDED PROJECTS, BY PARTICIPATING UN ORGANIZATION, ...........................................................................................................................................115 1 JULY 2004 - 30 JUNE 2008 ($000) ....................................................................................................................115 ANNEX 1B. TOTAL EXPENDITURE INCURRED AGAINST APPROVED AND FUNDED PROJECTS, BY SECTOR OUTCOME TEAM, 1 JULY 2004 - 30 JUNE 2008 ($000) ........................................................................................................118 ANNEX 2A. TOTAL PROJECT COMMITMENTS AND DISBURSEMENTS AGAINST APPROVED AND FUNDED PROJECTS, ...........................................................................................................................................................................121 BY PARTICIPATING UN ORGANIZATION, 1 JULY 2004 - 30 SEPTEMBER 2008 ($000) .........................................121 ANNEX 2A (CONTINUED). TOTAL PROJECT COMMITMENTS AND DISBURSEMENTS AGAINST APPROVED AND FUNDED PROJECTS, ............................................................................................................................................122 BY PARTICIPATING UN ORGANIZATION, 1 JULY 2004 - 30 SEPTEMBER 2008 ($000) .........................................122 ANNEX 2B. TOTAL PROJECT COMMITMENTS AND DISBURSEMENTS AGAINST APPROVED AND FUNDED PROJECTS, BY SECTOR OUTCOME TEAM, 1 JULY 2004 - 30 SEPTEMBER 2008 ($000) .........................................................124 

    LIST OF TABLES Table 2.1. Approved and Funded Projects, 1 January to 30 June 2008 ...................................................... 16 Table 3. 1. Approved and Funded Projects, 1 January to 30 June 2008 ..................................................... 19 Table 3. 2. Status of Project Implementation at Sector Level, as of 30 September 2008 ........................... 19 Table 3. 3. Contract Commitment and Disbursement Rates, as of 30 June 2008 ....................................... 20 Table 3. 4. Annual Contract Commitment Rates, as of 30 June 2008 ........................................................ 20 Table 3. 5. Sector Contract Commitment and Disbursement Rates, as of 30 June 2008 ............................ 21 Table 3. 6. Projects Pipeline, as of 30 September 2008 .............................................................................. 22 Table 3. 7. Annual Anticipated Project Completion, as of 30 June 2008 ................................................... 23 Table 3. 8. Operationally Closed Projects ................................................................................................... 24 Table 3. 9. Assessments, Studies and Evaluations ...................................................................................... 27 Table 5. 1. Sources, Uses, and Balance of UNDG ITF Funds, 1 January 2004 - 30 June 2008 ................. 86 Table 5. 2. Total Donor Deposits into the UNDG ITF ($000) .................................................................... 87 Table 5. 3. Net Donor Contributions, by Sector Outcome/Sub-Sector Outcome Team, as of 30 June 2008 ($000) ................................................................................................................................................. 88 Table 5. 4. UNDG ITF Earned Interest Income, 2004-2008 ($) ................................................................. 90 Table 5.5.Reported Interest Earned by Participating UN Organizations, as of 30 September 2008($) ...... 91 Table 5.6. Reported and Allocated Earned Interest, as of 30 September 2008 ($) ..................................... 93 Table 5.7. Distribution of Funds Transferred by Sector Outcome, Type of Funds, and Reporting Period ($000) .......................................................................................................................................................... 94 Table 5.8. Funds Transferred and Number of Projects, by Participating UN Organization ($000) ............ 95 Table 5.9. Balance of Funds, Earmarked by Sector Outcome Teams including Pipeline Projects ($000s) 96 Table 5.10. Donor Allocations, by Sector Outcome Team, Funds Transferred, Commitments, and Disbursements, Balance of Funds as of 30 September 2008 ...................................................................... 97 Table 5.11. Donor Allocations, by Sector Outcome Team, Funds Transferred, Commitments, and Disbursements, Balance of Funds as of 30 September 2008 ...................................................................... 98 Table 5.12. Summary of Total Expenditure, by Category and Reporting Period ($000)........................... 99 

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    Table 5.13. Summary of Total Expenditure, by Sector Outcome Team, as of 30 June 2008 ($000) ....... 100 Table 5.14. Summary of Total Expenditure, by Participating UN Organization, as of 30 June 2008 ($000) ........................................................................................................................................................ 101 Table 5.15. Total Expenditure, by Sector Outcome Team, with Breakdown by Category, 1 January-30 June 2008 ($000) ....................................................................................................................................... 102 Table 5.16. Total Expenditure, by Participating UN Organization, with Breakdown by Category, 1 January-30 June 2008 ($000) .................................................................................................................... 103 Table 5.17. Total Expenditure, by Sector Outcome Team, with Breakdown by Category, for All Eight Reporting Periods (1 July 2004- 30 June 2008) ($000) ............................................................................ 104 Table 5.18. Total Expenditure, by Participating UN Organization, with Breakdown by Category, for All Eight Reporting Periods (1 July 2004-30 June 2008) ($000) .................................................................... 105 Table 5.19. Total Project Commitments and Disbursements, Updated by Sector Outcome Team ($000)107 Table 5.20. Total Project Commitments and Disbursements, Updated by Participating UN Organization ($000) ........................................................................................................................................................ 108 Table 5.21. Value and Number of Contract Awards, by Country ($) ....................................................... 109 Table 5.22. Contract Awards, by Sector Outcome Team, July 2004-March 2008 ($) .............................. 110 Table 5.23. Contract Awards, by Method of Procurement ($) .................................................................. 110 

  • 1

    Executive Summary Introduction 1. The Eighth Six-month Progress Report on Activities Implemented under the United Nations Development Group Iraq Trust Fund (UNDG ITF) is submitted to the Iraq Ministry of Planning and Development Cooperation (MoPDC) and the Donor Committee of the International Reconstruction Fund Facility for Iraq (IRFFI) in fulfillment of the reporting provisions of the Letter of Agreement (LOA). The consolidated narrative and financial report covers the period from 1 January to 30 June 2008 with additional financial updates covering the period 1 July to 30 September 2008.

    2. As reported previously, the Iraq United Nations Country Team (UNCT) began restructuring the UNCT Coordination Structure and reformulating the UN Iraq Assistance Strategy in August 2007 following the adoption of Security Council Resolution 1770 on Iraq on 10 August 2007 and in response to the priorities outlined in the International Compact with Iraq (ICI). The restructuring of the UNCT Coordination Structure was completed during the reporting period as well as the UN Iraq Assistance Strategy for 2008-2010. In response, UNDG ITF arrangements were modified during the reporting period to align with the changes in the UNCT coordination structure and priorities set forth in the new UNCT Strategy.

    3. At the seventh meeting of the IRFFI Donor Committee, hosted by the Government of Iraq (GoI) in Baghdad on 7 July 2008, a number of strategic decisions were taken regarding the future of the IRFFI. The Donor Committee agreed that it was an appropriate time to plan for the closure of IRFFI and re-quested the UN and World Bank to provide the Executive Committee with a concept note outlining a final timeline and mechanism for closure of the IRFFI to be presented and discussed at the next donor meeting. Additionally, the Donor Committee, taking into account the applicable donor regulations, approved the allocation of up to $20 million from the UNDG ITF interest earnings to be used to support humanitarian assistance and support to IDPs.

    Progress Reports

    4. The report is consolidated based on information and data contained in the individual progress reports and financial statements submitted by the 16 Participating UN Organizations of the UNDG ITF2 including the individual sector reports prepared and submitted by each sector. The report also builds on the seven consolidated previous progress reports.

    5. In addition to the consolidated bi-annual progress report, the UNDG ITF can provide donors with the individual project progress reports submitted by Participating UN Organizations presenting detailed information on the activities and achievements of each project. The individual project reports are available upon request from the Multi-Donor Trust Fund (MDTF) Office.

    6. Individual project progress summaries, or ‘fiches’, providing a snapshot of qualitative and quantitative progress made to date at the project level, are also available. These project summaries are prepared in response to request of major donors such as the European Commission (EC). The individual project summaries “fiches” are updated quarterly and posted on the UNDG ITF section of the IRFFI web site (www.irffi.org).

    2 In the present report, as in the previous six-month progress reports, the term “agency” is used interchangeably with “organ-ization” to describe the Participating UN Organizations, although only a few of the relevant organizations are legally defined as agencies.

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    Report Structure

    7. The Eighth Six-month Progress Report is presented in five sections. Section 1 provides a brief review of IRFFI related issues. Section 2 provides an overview and update of the UN mandate and UNDG ITF governance framework, including the new UNCT coordination structure, strategy and approval processes. Section 3 provides a status update, including project approvals during the reporting period, status of projects, and an update of the challenges and assessments undertaken. Section 4 highlights sector-level achievements in the new Sector Outcome Team (SOT) reporting format, and Section 5 provides an overview of the financial performance of the UNDG ITF.

    8. Beginning with this consolidated report, produced by the MDTF Office, progress of the UNDG ITF funded projects, narrative and financial, is aligned to the new SOT coordination structure. Additionally, the previous cluster section and matrixes have been replaced with individual SOT narrative progress reports that have been prepared by the individual SOT and consolidated into this report.

    UNDG ITF Strategic Framework

    9. The role of the UN in Iraq is derived and defined from Security Council Resolutions (SCR) 1546 (2004) and SCR 1770 (2007) and is implemented through the United Nations Assistance Mission for Iraq (UNAMI) led by the Special Representative of the Secretary General (SRSG). With an expanded mandate under SCR 1770, the UNCT for Iraq is providing humanitarian, reconstruction and development assis-tance.

    10. The United Nations Assistance Strategy for Iraq 2008-2010, developed jointly by the GoI and the UNCT and endorsed by the GoI, addresses the priority needs of the Iraqi people as defined in the National Development Strategy (NDS), the ICI and the Millennium Development Goals (MDGs). The strategy, which focuses on capacity development and the provision of technical assistance, will guide the UN and future activities of Participating UN Organizations in cooperation with Iraq.

    11. In response to the expanded UN mandate under SCR 1770, the UNCT restructured its coordination structure. The new structure was completed during the reporting period. At the core of the new structure are eight interagency SOTs based in Amman that focus on education, water and sanitation, health and nutrition, housing and shelter, food security (agriculture, food assistance), protection, governance support, and economic reform and diversification, including infrastructure support. The SOTs are linked to the Baghdad Policy Group, representing senior policy advisors, which is comprised of four pillars within the UN Assistance Strategy for Iraq: essential social services; protection; governance; and economic development.

    12. The UNDG ITF arrangements were modified during the reporting period to align with changes to the UNCT coordination structure and priorities set forth in the new UN Iraq Strategy. During this restructuring period, the submission of UNDG ITF proposals and the existing pipeline were temporarily suspended to ensure that all new UNDG ITF proposals were developed in compliance with the UNCT and ICI strategic priorities and rigorously reviewed utilizing the new UNCT coordination structure.

    Projects Approved

    13. A total of $1.3 billion has been deposited in the UNDG ITF as of 30 June 2008, of which $1.11 billion has been approved by the Iraqi Strategic Review Board (ISRB) and the UNDG ITF Steering Committee following technical review and vetting by Iraqi authorities, UNCT and donors to support 140 projects. During the current six-month reporting period, seven new projects were approved and funded for a total of $26.38 million. Of the six new projects, one was approved as a joint programme.

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    Projects Completed

    14. As of 30 September 2008, the total number of ‘operationally closed’ projects was 64, or 46 percent of the 140 total approved projects and joint programmes. To date, eight projects have been confirmed as ‘financially closed’. A project is declared ‘operationally closed’ at the completion of the project duration when the implementing agency has communicated that all project activities have been completed. The ‘financial closure’ is within no more than 12 months of the operational closure.

    Project Approval Process

    15. The project design, review and approval processes were revised and strengthened during the reporting period. The main changes in the process focus on the decision to move away from supporting larger infrastructure projects and towards more emphasis on the provision of capacity development and technical assistance, strengthening joint programming, results-based programming and government co-financing. The process has also been strengthened through the formalization of the project concept note into the early stages of the review process and the introduction of various new or restructured technical and review bodies that include enhanced donor and NGO participation. The proposal submission templates and the proposal review criteria were redesigned to ensure that adequate resources are allocated to support the new priorities, that proposals are rigorously reviewed, and that a results-based approach is used from the outset to ensure proper monitoring and evaluation.

    Earmarking

    16. Approximately 89 percent of the contributions received in the UNDG ITF account are earmarked at the level of a specific sector(s) or sub-sector and/or specific agency(ies). Earmarking by project is not permitted under the UNDG ITF in line with the basic principle of multi-donor trust funds, where funds are commingled and there is no one-to-one relationship between donor contribution and individual project(s). Irrespective of whether or not donor contributions are earmarked, all projects submitted by Participating UN Organizations to the ISRB and the UNDG ITF Steering Committee undergo the same review and approval procedure.

    Implementation Challenges

    17. The individual SOT reports contained in Section 4 provide a detailed account of the challenges that are unique to each sector. However, common challenges described in both the SOT reports and the individual Participating UN Organization project reports during the reporting period include: capacity building, policy development, unavailability of adequate funding, communication and security.

    Sector Status and Achievement Highlights as of 30 June 2008

    18. Education: The sector has 25 UNDG ITF projects, 10 active and 15 closed, including 19 extensions and six joint programmes. Total approved funding is $189.16 million (17 percent of total), with $152.98 million (81 percent) in contract commitments and $125.21 million (66 percent) in disbursements.

    Sample sector achievements include:

    • Comprehensive rehabilitation of 68 schools, including upgrading of water and sanitation facilities in 68 schools benefiting approximately 64,244 children.

    • Nineteen (19) classrooms renovated and 40 new classrooms established. • Rehabilitation activities generating approximately 100,000 person-days of local employment,

    with work continuing in 152 schools. • To date, 17,718 students enrolled in the Accelerated Learning Programme (ALP), and two youth

    centers in Basrah and Baghdad reestablished, benefiting 838 children/youth.

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    • In preparations for the launch of the Education TV Channel, a television station rehabilitated, equipment installed and 35 Ministry of Education (MoEd) specialists trained.

    • Early childhood development kits distributed to 577 kindergartens, 107 grade one primary schools and 61 nurseries located in 15 governorates.

    • Supplementary learning materials reprinted and distributed to 4,500 students. New curricula in Arabic, English, math and science, as well as e-learning modules, developed.

    • 34 Iraqi Network Academies established in 29 localities in five regions. • An educational management information system institutionalized at central and governorate

    levels, with training for 10 MoEd and Department of Education (DoE) officials. • The Health Promoting Initiative (HPS) launched in 2008, including awareness campaigns for

    3,000 teachers, community leaders and students and developing capacities of 370 doctors and 230 teachers in HPS, 142 doctors on visual detection, and 280 doctors and 100 teachers on psychosocial support.

    19. Water and Sanitation: The sector has 15 UNDG ITF projects, eight active and seven closed, including 11 extensions and four joint programmes. Total approved funding is $68.45 million (six percent of total), with $57.08 million (83 percent) in contract commitments and $43.44 million (63 percent) in disbursements.

    Sample sector achievements include:

    • Collectively, more than 1.5 million Iraqis in urban and rural areas and camps benefiting from im-proved safe water and 500,000 from access to safe means of solid and liquid waste disposal.

    • Increased access to improved sanitation for 155,000 inhabitants of Kirkuk. • Increased access to proper sanitation and minimized public health risks for nearly 400,000

    inhabitants in Basrah. • Increased access to safe drinking water for 225,000 inhabitants in Wasit. • Rehabilitation and renovation of a water treatment plant in Baghdad progressed to its final stages

    with a capacity of 10 million gallons /daily serving approximately 400,000 inhabitants. • The Ministry of Municipality and Public Works (MoMPW) and Basrah Governorate master plans

    ‘Integrated Solid Waste Management’ developed. • Residents, IDPs and returnees living in 26 villages and 21 sub-districts supplied with safe water

    by nine NGOs. • 25 local officials in MoMPW trained in solid waste management, 1,092 MMPW laboratory staff

    in all governorates trained, and 4,000 community leaders trained on hygiene education. Overall training progressed to 58 percent.

    20. Health and Nutrition: The sector has 21 UNDG ITF projects, 13 active and eight closed, including 17 extensions and five joint programmes. Total approved funding is $161.20 million (15 percent of total), with $129.14 million (80 percent) in contract commitments and $101.70 million (63 percent) in disbursements.

    Sample sector achievements include:

    • Implementation of the Integrated Management of Child Health Strategy (IMCI) in six governo-rates, including training of 108 health professionals.

    • Screening for visual and hearing difficulties and bony skeletal abnormalities for primary level students at 150 schools in eight governorates.

    • First national conference held in April to strengthen the capacity of physicians to address malnu-trition rates.

    • Construction and rehabilitation of Primary Health Care (PHC) facilities benefiting 226,500 in the three northern governorates.

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    • Rehabilitation and equipping of Basrah maternity ward completed and handed over, and 10 am-bulances provided.

    • Equipment and supplies provided to support VSAT connectivity of Ministry of Health (MoH) with the 19 Departments of Health (DoHs), to enhance quick data transfer to support decision-making and policy formulation.

    • A 10-day mop-up immunization campaign targeting 250,000 children with measles or MMR vac-cines in high-risk areas in the three governorates.

    • Capacity of Codex Alimentarius Commission strengthened through a series of trainings to im-prove food safety standards and the rehabilitation of the Babil Milk Collecting Center was com-pleted.

    • Responding to military operations in Basrah and Baghdad - Sadr City during the conflict period, approximately 10,000 patients provided with disposable medical supplies, Baghdad with two emergency trauma kits and six hospitals in Basrah City with disposable medical supplies.

    21. Housing and Shelter: The sector has three UNDG ITF projects, one active and two closed, including three extensions. Total approved funding is $24.55 million (two percent of total), with $24.55 million (100 percent) in contract commitments and $22.06 million (90 percent) in disbursements.

    Sample sector achievements include:

    • Contributed towards the finalization of the Internal Displacement Policy, addressing displaced population issues and an action plan for temporary shelter needs.

    • Governorates of Erbil, Babylon and Najaf supported to develop housing strategies through a consultative process.

    • Implementation of the Erbil housing strategy and one pilot focused on slum improvement. • Disbursement by the Community Housing Fund of 961 loans with value of US $2,549,910. • 23 master trainers trained in three major areas (housing policies and strategies, building materials

    and construction, and GIS for real estate development). • Training conducted for local NGOs on assessing emergency shelter needs. • Non-food items and shelter kits provided to 35,000 families (66 percent of 2008 target). • Rehabilitation of 65 houses in Hay Al-Maghreb-Baghdad, benefiting about 455 people, as well as

    construction of one public hospital, one youth centre and one primary health centre. • Shelter conditions of IDPs assessed by monitoring partners in all 18 governorates and geo-

    referenced information widely published. 22. Agriculture and Food Security: The sector has 19 UNDG ITF projects, 14 active and five closed, including 14 extensions and two joint programmes. Total approved funding is $132.29 million (12 percent of total), with $100.93 million (76 percent) in contract commitments and $89.76 million (68 percent) in disbursements.

    Sample sector achievements include:

    • 181 pumping stations and a pumping station asset database completed. • Spare parts procured and installations completed for six pumping stations, providing irrigation to

    an area of 409,000 donomes and benefiting 43,000 people. • 28 training courses conducted, benefiting approximately 1,100 poor and marginalized persons;

    1,509 vulnerable beneficiaries trained in food-related professions. • Review of the National Seed Policy. • A post-food distribution monitoring system and associated database implemented in all 18

    governorates. • A training of trainers on monitoring and evaluation systems conducted for 18 staff members from

    Central Organization for Statistics and Information Technology (COSIT) and Kurdistan Regional Statistics Office (KRSO).

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    23. Protection: The sector has 10 UNDG ITF projects, five active and five closed, including three extensions and one joint programme. Total approved funding is $41.61 million (4 percent of total), with $31.96 million (77 percent) in contract commitments and $31.06 million (75 percent) in disbursements.

    Sample sector achievements include:

    • National Policy on Internal Displacement was adopted in principle by Council of Ministers, re-vised and a workplan drafted for presentation at upcoming National Conference on Internal Dis-placement.

    • The statute for the Ministry of Displacement and Migration (MoDM) ‘Draft Basic Law’ submit-ted to Parliament for adoption.

    • 27 participants from the human rights units of various ministries trained in a human rights-based approach to programming, and 16 MoDM trainers trained in human rights and international hu-manitarian law.

    • 28 lawyers trained in human rights standards, criminal justice and detainees’ rights, and 540 civil society actors, academics and university teachers on peace building topics.

    • A total of 57 events (29 workshops, 6 trainings, 22 information campaigns) organised by various Protection and Assistance Centres (PACs), which dispatched Mobile Teams to address the legal needs of 11,825 (40 percent of them women) IDPs, returnees, refugees, asylum-seekers and vul-nerable community members. 8,521 cases and 3,055 quick protection queries solved by the PAC network.

    • Priority and emergency assistance needs identified through IDP and returnee monitoring in 453 locations and 200 new project recommendations entered into the central database.

    • 6.77 million square meters of contaminated land made safe for use by local communities in Ba-srah and mine risk education provided to 75,000 school children and 52,000 community mem-bers in Missan, Thi Qar and Basrah .

    • 10,558 Palestinians in Baghdad registered jointly by MoDM and Ministry of Interior (MoI), and 83 cases (347 persons) submitted for resettlement as of 30 June.

    24. Governance: The Sector has 25 UNDG ITF projects, 12 active and 13 closed, including 15 extensions and three joint programmes. Total approved funding is $261.89 million (24 percent of total), with $224.94 million (86 percent) in contract commitments and $214.40 million (82 percent) in disbursements.

    Sample sector achievements include:

    • Better understanding by the Constitutional Review Committee (CRC) and Council of Representa-tives (COR) of conflict resolution, power sharing, consensus building, political transition and the role of grass root movements, through a study tour to Northern Ireland.

    • ‘Right to Live in Safety’ campaign produced in Baghdad, including two weeklong workshops for 46 academics and three workshops for 49 CSOs as well as 150 on-going campaigns.

    • Study visits to South Africa for two groups of Iraqi business leaders and NGOs. • A declaration of principles on the legal framework for NGOs in Iraq adopted and progress

    achieved toward finalization of an NGO law. • A Human Rights Report covering 2007 delivered, leading to continued dialogue with the GoI

    over compliance with human rights standards in all institutions. • Ratification by the GoI of the UN Convention against Corruption (UNCAC) following the first

    international conference on anti-corruption held in Baghdad. • The Provincial Powers Law enacted, paving the way for implementation of the constitutional

    provisions of decentralized service delivery.

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    • The 2007 budget process completed jointly by the Council of Representatives Finance Commit-tee, the Ministries of Finance and Planning and the Board of Supreme Audit in April.

    • A diagnostic study of target project areas produced by the Local Area Development Project, in-cluding district profiles for Sharazour and Sayed Sadek, a baseline study in Hillah and the Marsh-lands, a business survey of 900 entrepreneurs and the design of a fund for small business loans.

    25. Economic Reform and Diversification: The Sector has 22 UNDG ITF projects, 15 active and seven closed, including 16 extensions and two joint programmes. The total approved funding is $231.70 million (21 percent of total), with $162.55 million (70 percent) in contract commitments and $138.34 million (60 percent) in disbursements.

    Sample sector achievements include:

    • Establishment of three technical planning units in three districts in Basrah, enhancing local devel-opment planning capacities, conflict management and gender mainstreaming.

    • A Temporary Income Assistance Fund to support vulnerable and poor groups livelihoods, a Local Development Fund to support community infrastructure projects, a Rural Recovery Fund providing micro grants to local farmers, and the implementation of labour-intensive schemes by local au-thorities to assist in income generation for the poor.

    • Territorial and conflict resolution training workshops for municipal, governorate and steering committee staff in Basrah.

    • Samarra shrine urgent preventative work, cleaning of site and classification of materials is complete and reconstruction works is progressing well, providing temporary income for some 200 unemployed residents and resulting in an increase in pilgrimage and trade.

    • Upgrading and replacement of power plant facility spare parts in Mussaib, Mossul and Taji. • Completion of rehabilitation works on the Taji Power Station Unit No 1 and 6, providing for the

    production of 16-18 megawatts of electricity. Completion and handover of the Rehabilitation of the Umm Qasr distribution network and installation of small diesel generators in Southern Iraq.

    • Capacity strengthened with the completion of the National Dispatch Center II main database.

    Financial Performance

    26. During the six-month reporting period, additional contributions of $33.97 million were received from the European Commission, Australia and Finland, which increased total gross donor contributions to $1.31 billion. This represents 98 percent of the total commitments made by donors to date.

    27. A total of $60.32 million was expended during the reporting period, bringing the cumulative expenditure from inception in mid-2004 to 30 June 2008 to about $911 million, or almost 82 percent of the total approved funding of $1.11 billion.

    28. A total of $884 million, or 80 percent, of approved and transferred funding to Participating UN Organizations has been legally committed and $766 million, or 69 percent, of approved and transferred funding had been disbursed. Most of the sub-sectors continue to have commitment and disbursement rates at or above 70 percent.

    29. As of 31 March, 2008, 2,337 contracts were awarded by the Participating UN Organizations to suppliers from 47 countries have been posted on the UNDG ITF/IRFFI web site. These contracts are for services, supplies, commodities, equipment, and other project inputs and have a combined value of approximately $565.07 million. Iraq, with $127.52 million in contract awards (1,014 individual contracts), is the largest single supplier of goods and services, indicating the large volume of national/local contracting, particularly for community-level infrastructure rehabilitation.

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    30. As of 30 June 2008, a total of $55.35 million interest income has been reported comprised of Fund level earned interest of $30.23 million, and reported interest earnings of $25.12 million from Participating UN Organizations.

    UNDG ITF Transparency and Accountability

    31. The major vehicle for public transparency of UNDG ITF operations continues to be the IRFFI web site: www.irffi.org. The public posting of UNDG ITF operations, including contract award data, provides a high level of transparency to Iraqi authorities, donors, the public, the business community, and the Participating UN Organizations. By accessing contract data information, UN programme managers can easily determine costs for activities comparable to those that they are planning, while vendors can benchmark their subsequent product and service offerings in order to be competitive in future bidding exercises. The commitment and disbursement figures also serve as benchmarks for the UNDG ITF Steering Committee for approving new projects, because no project can be approved unless the Participating UN Organization can demonstrate a commitment and disbursement rate of at least 50 percent and 25 percent, respectively, on previously funded amounts.

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    Introduction The Eighth Six-month Progress Report on Activities Implemented under the UNDG ITF is submitted to the Iraq MoPDC and the Donor Committee of the IRFFI in fulfillment of the reporting provisions of the LOA. The consolidated narrative and financial report covers the period from 1 January to 30 June 2008, with additional analysis covering the third quarter of 2008 from 1 July to 30 September 2008. The finan-cial analysis covering the third quarter of 2008 is based on unofficial project contract commitment and disbursement figures. The information presented in the report covers the specific six-month reporting pe-riod as well as the previous seven periods of progress reporting to provide a comprehensive update on the status of the UNDG ITF. A total of $1.3 billion has been deposited in the UNDG ITF as of 30 June 2008, of which $1.11 billion has been approved by the ISRB and the UNDG ITF Steering Committee following review and approval of 140 projects. During the current six-month reporting period, seven new projects were approved and funded for a total of $26.38 million. Of the six projects, one was approved as a joint programme. As reported in the previous reporting period, the Iraq UNCT began restructuring the United Nations Country Team (UNCT) Coordination Structure and reformulating the UN Iraq Assistance Strategy in Au-gust 2007 following the adoption of Security Council Resolution 1770 on Iraq on 10 August 2007 and in response to the priorities outlined in the ICI. The restructuring of the UNCT Coordination Structure was completed during the reporting period as well as the UN Iraq Assistance Strategy for 2008-2010. At the core of the new structure are eight interagency SOTs based in Amman that focus on education, wa-ter and sanitation, health and nutrition, housing and shelter, food security (agriculture, food assistance), protection, governance, and economic reform and diversification, including infrastructure support. The SOTs have officially replaced the cluster coordination structure. The UNDG ITF operates within the UNCT coordination structure to ensure inter-agency, donor and gov-ernment participation in the identification, design, development and approval as well as implementation and monitoring of the UNDG ITF activities. Therefore, UNDG ITF arrangements were modified during the reporting period to align with the changes in the UNCT coordination structure and priorities set forth in the new UNCT Strategy, which guides the future activities of the UNDG ITF. Hence, beginning with this report, the consolidated report produced by the MDTF Office presents the progress of the UNDG ITF funded projects, narrative and financial, aligned to the new SOT coordination structure. Additionally, the previous cluster section and matrixes have been replaced with individual SOT narrative progress reports that have been prepared by the individual SOTs and consolidated into this re-port. The report also highlights modifications to the previous UNDG ITF governance arrangements and processes. The project design, review and approval processes were also revised and strengthened during the report-ing period. The revised process put in place a more rigorous proposal review and approval process that ensures greater alignment with the ICI and more inclusive participation from the GoI, NGOs and donors, including the representation of two donors on the UNDG ITF Steering Committee. At the seventh meeting of the IRFFI Donor Committee, hosted by the GoI in Baghdad on 7 July 2008, a number of strategic decisions were taken regarding the future of the IRFFI. The Donor Committee agreed that it was an appropriate time to plan for the closure of IRFFI and requested the UN and World Bank to provide the Executive Committee with a concept note outlining a final timeline and mechanism for clo-sure of the IRFFI to be presented and discussed at the next donor meeting. Additionally, the Donor Com-mittee, taking into account the applicable donor regulations, approved the allocation of up to $20 million from the UNDG ITF interest earnings to be used to support humanitarian assistance and support to IDPs.

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    The preliminary findings of the IRFFI Multi-Donor Stocktaking Review were presented by Scanteam at the seventh UNDG ITF donor meeting. Overall, the review found that IRFFI has made an important con-tribution to reconstruction and development in Iraq, with the majority of projects demonstrating real and beneficial impact on the lives of the beneficiaries. Furthermore, IRFFI projects have played an important role in building capacity and providing services at the national and sub-national levels.  

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    1. IRFFI/UNDG ITF Strategic Framework and Benchmarks

    IRFFI COORDINATION 1.1 Seventh IRFFI Donor Committee Meeting The seventh meeting of the IRFFI Donor Committee held on 7 July 2008 and was hosted by the GoI and held in Iraq for the first time. The meeting was chaired by the IRFFI Donor Com-mittee Chair, Ambassador Gianludovico de Martino and opened by the Iraq Minister of Planning and Development Cooperation (MoPDC) and Chair of the IRFFI Executive Committee, Dr. Ali Baban. A number of strategic decisions were taken regarding the future of the IRFFI. The donors agreed that it was an appropriate time to plan for the closure of IRFFI. The Donor Committee emphasized the impor-tance of an orderly, efficient wind-up that would allow for the successful completion of all projects and programmes, and ensure compliance with UN and World Bank legal agreements and related conditions, without undermining long-term gains and results on the ground. The Donor Committee requested the UN and World Bank to provide the Executive Committee with a concept note outlining a final timeline and mechanism for closure of the IRFFI including a recommended final closing date and cut-off date for new donor contributions and the approval of new projects by the UN and World Bank. Furthermore, the Donor Committee, taking into account the applicable donor regulations, approved the allocation of up to $20 million from the UNDG ITF interest earnings to be used to support humanitarian assistance and support to IDPs. The final IRFFI Donor Committee Meeting Statement was adopted with the following decisions:

    • Remaining UNDG ITF funds should be used primarily to support GoI capacity development and technical assistance priorities.

    • Up to $20 million from the UNDG ITF interest earnings may be used for humanitarian assistance and to support IDPs. The interest earnings should be taken from donors who do not have any re-strictions regarding the use of the interest income. Funding should also be made available to sup-port civil society.

    • Cut-off dates would be set for new donor contributions to the two Trust Funds in 2009, with the UN agreeing not to enter into any further contractual commitments against approved funds later than 12 months from the date.

    • The UN and WB would formulate a proposal for a final timeline and mechanism for the orderly closure of the IRFFI, to be presented at the next Donor Committee meeting.

    Italy agreed to continue to chair the Donor Committee until the next meeting scheduled for late 2008. 1.2 UNDG ITF Closure Following the Donor Committee request for further review and planning the closure of the UNDG ITF, the MDTF Office identified the compliance issues and conditions to be fulfilled to ensure an orderly clo-sure. The conditions are contained in the IRFFI TOR as well as the UNDG ITF LOA between the MDTF Office and donors, and memoranda of understanding with Participating UN Organizations. The condi-tions include:

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    • Termination & completion of financed projects • Orderly conclusion • Disposal of unutilized balance • Final reporting obligations The MDTF Office will continue to work with the Chair of the Steering Committee and the World Bank to further define and prepare a concept paper outlining closure recommendations for consideration by the Executive and Donor Committees in advance of the next donor meeting that is scheduled to take place at the end of 2008.

    2. Project Approval and Implementation Updates UNDG ITF STRATEGIC FRAMEWORK

    2.1. Role of the United Nations

    The role of the UN in Iraq is derived and defined from Security Council Resolutions (SCR) 1546 (2004) and SCR 1770 (2007) and is implemented through UNAMI led by the SRSG. With an expanded mandate under SCR 1770, UNCT for Iraq is providing humanitarian, reconstruction and development assistance.

    2.2. UN Iraq Assistance Strategy for 2008-10

    In August 2008, the United Nations and the GoI signed a coopera-tion agreement, defining how the UN will support Iraq’s recon-struction, development and humanitarian needs over the next three years. The United Nations Assistance Strategy for Iraq 2008-2010, developed jointly by the GoI and the UNCT, addresses the priority needs of the Iraqi people as defined in the National Development Strategy (NDS), the ICI and the MDGs. The strategy, which focuses on capacity development and the pro-vision of technical assistance, will guide the UN and Participating UN Organization activities in cooperation with Iraq and serves as a reference document that aims to: • Reinforce policy development and coordination at all levels of

    society across Iraq • Support the foundation for sustainable reconstruction and de-

    velopment • Provide assistance for durable solutions on humanitarian is-

    sues arising in Iraq • Strengthen partnerships between UN and other partners, particularly with the NGO community

    The new strategy ensures that projects are results-oriented and accountable, as required under the Paris Declaration on Aid Effectiveness, which the GoI endorsed on 29 May 2008. As of 30 September 2008, there is approximately $250 million available in the UNDG ITF to support priority activities jointly iden-tified in the 2008-2010 strategy.

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    2.3. United Nations Country Team Coordination Structure

    In response to the expanded UN mandate under SCR 1770, the UNCT restructured its UNCT coordina-tion structure. The new structure was completed during the reporting period. Four key outcomes form the basis of the new coordination structure:

    • Improved and equitable access to essential social services • Strengthened civilian protection • Accelerated and inclusive economic development • Strengthened governance

    At the core of the new structure are eight interagency SOTs based in Amman that focus on education, wa-ter and sanitation, health and nutrition, housing and shelter, food security (agriculture, food assistance), protection, governance support, and economic reform and diversification, including infrastructure support (see Table 2.1: Restructuring of Cluster to Sector Outcome Teams). To increase the level of interaction with the GoI and ensure alignment with national priorities, the sectors are represented in Baghdad by a policy group on outcomes and are being staffed by senior agency special-ists in the areas of essential services, protection, governance, and economic development. The Baghdad Policy Group (BPG) will be a regular and direct counterpart to the MoPDC and ISRB, interact directly with ministries, and work closely with ICI thematic working groups to ensure alignment with the NDS, ICI, MDGs, and the UNAMI mandate as set forth in SCR 1770. The mandate of the UN Policy Group is to work closely with the GoI to identify assistance needs through the provision of technical assistance in the four key outcome areas, as well as on-site support for ongoing UNDG ITF programs. The BPG will also work with the GoI in a strategic realignment of the ICI to re-flect the new political and socioeconomic reality on initiatives that can accelerate transition toward a functional market economy.

    2.4. New UNDG ITF Governance Arrangements

    The UNDG ITF operates within the UNCT coordination structure to ensure inter-agency, donor and gov-ernment participation in the identification, design, development and approval as well as implementation and monitoring of the UNDG ITF activities. The UNDG ITF is also governed by the IRFFI Terms of Reference (TOR) and the UNDG ITF Steering Committee TOR. While complying with the governance arrangements set forth in the IRFFI TOR, the UNDG ITF ar-rangements were modified during the reporting period to align with the changes to the UNCT coordina-tion structure and priorities set forth in the new UN Iraq Strategy, which guides the future activities of the UNDG ITF. The following section outlines the various roles and any modifications to the previous processes, and how they currently contributed to the overall governance of the UNDG ITF.

    2.4.1. UNDG ITF Steering Committee The Steering Committee continues to coordinate and oversee the operations of the UNDG ITF and pro-vide overall strategic guidance and oversight as well as makes decisions on fund allocation. It is chaired by the Deputy Special Representative of the Secretary-General (DSRSG) who is also the UN Resident Coordinator. The Committee has been composed of the heads of each Participating UN Organization; however, a decision was taken in July 2008 to include two donor representatives, for a one-year period on a rotating basis, in the Steering Committee to enhance discussions of governance and programme approv-al as well as provide greater strategic oversight and transparency. The first donor representatives to join

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    the Committee are the European Commission and the Government of Canada, who will serve for one year beginning September 2008.

    2.4.2. UNDG ITF Steering Committee Support Office (SCSO) The mandate of the SCSO, under the supervision of the DSRSG, is to support and facilitate the work of the Steering Committee including proposal development, review and approval processes. The SCSO tracks the status of the proposals, provides advice to the Participating UN Organizations and Steering Committee, and follows up on decisions taken by the various contributing structures to ensure the timely follow-up and adherence to agreed UNDG ITF procedures. During the reporting period, the Chair of the Steering Committee and the MDTF Office collaborated in the review of the existing SCSO human resource portfolio and prepared a revised budget to allocate addi-tion human resources to enhance the staffing capacity of the SCSO as recommended by the Pricewaterh-ouseCoopers 2006 UNDG ITF Programmatic Review. The increased direct cost budget was approved by the UNDG ITF Steering Committee on 3 July 2008 and supports the recruitment of a Monitoring and Evaluation (M&E) Officer, which is a new position within the SCSO. The M&E Officer will assist Partic-ipating UN Organizations in the project development stage and the Steering Committee in monitoring performance throughout implementation. Additionally, the revised SCSO budget provides for a pro-gramme specialist and three national officers. Recruitment of the M&E Officer was completed following the reporting period and the other four positions, which were formally seconded by UNAMI to the SCSO, will be formally recruited in the next reporting period.

    2.4.3. UNCT Baghdad Policy Group (BPG) A new group within the UNCT coordination structure is the Baghdad Policy Group (BPG). The BPG is divided into four key pillars: essential social services; protection; governance; and economic develop-ment. The pillars are comprised of senior advisory staff from Participating UN Organizations and based in Baghdad to enable close cooperation with the GoI. In relation to the UNDG ITF, the BPG will review draft proposals to ensure alignment with GoI priorities in relation to the NDS and ICI, and will participate in the Peer Review Group.

    2.4.4. Sector Outcome Teams (SOT) As reported in the previous section, the former cluster coordination structure has been redesigned into eight new SOTs. The SOTs are designed to increase strategic planning, programming and coordination as well as provide for technical review and approval of projects working closely with the relevant counter-part ministries and the GoI to achieve improved and equitable access to essential social services, streng-thened civilian protection, accelerated and inclusive economic development, and strengthened gover-nance. Each sector is chaired by a UN agency and Deputy Chair and includes other UN agencies whose mandates are in line with the relevant SOT outcomes. Similarly, NGOs are encouraged to participate in their various sectors. SOTs are supported by a Sector Officer and Assistant provided by UNAMI, but op-erating from the Sector Chair’s Agency.

    2.4.5. Peer Review Group (PRG) The Peer Review Group (PRG) was also recently restricted, with the BPG forming its nucleus. Its primary responsibility is to provide an objective strategic review of programme proposals, ensuring transparency, programmatic coherence and stakeholder involvement in the identification, design and implementation of UN-supported activities in Iraq. The PRG does not conduct a technical review of proposals, because this is the primarily responsibility of the SOT. The PRG operates under the direct guidance and supervision of the DSRSG as Chair of the UNDG ITF Steering Committee, or his/her designate. It is comprised of the BPG, UNAMI and GoI representatives, two voluntary members of the donor community and NGOs.

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    2.4.6. Iraq Strategic Review Board (ISRB) The role of the ISRB has not changed with the introduction of the new coordination structure. The ISRB continues to provide overall policy and strategic guidance for donor assistance and it is the final approv-ing authority for all programming in Iraq including IRRFI/UNDG ITF funded projects. Chaired by the MoPDC, the ISRB reviews all IRFFI/UNDG ITF projects at the concept stage and before they are submit-ted to the UNDG ITF Steering Committee for final approval.

    2.4.7. Iraq Ministry of Planning and Development Cooperation (MoPDC) The role of the MoPDC is also unchanged. The MoPDC is the primary interlocutor of the GoI with the IRFFI and, as Chair of the IRFFI Executive Committee and the ISRB, plays an important oversight and advisory role. It ensures that resources are applied and equitably distributed according to Iraq’s priori-tized needs. The MoPDC works closely with the Ministry of Finance (MoF) to ensure conformity with the overall budgetary framework, and maintains an overview of the project development and implementa-tion processes of the UNDG ITF.

    2.4.8. Administrative Agent/Multi-Donor Trust Fund (MDTF) Office The role of the MDTF Office, as the Administrative Agent for the UNDG ITF, continues to include the receipt, administration and management of contributions from donors; disbursement of funds to the Par-ticipating UN Organizations, in accordance with instructions from the Steering Committee; and consoli-dation and dissemination of progress reports to the MoPDC and donors. In response to the restructuring, the MDTF Office has aligned its existing UNDG ITF monitoring and tracking mechanisms to the new SOT structure. Hence beginning with the this report, the consolidated report produced by the MDTF Of-fice presents the progress of the UNDG ITF funded projects, narrative and financial, aligned to the new SOT structure.

    2.4.9. New Sector Outcome Team (SOT) Structure The table 2.1 illustrates the migration of the old cluster structure into the new SOT structure. UNDG ITF projects that were previously approved under the cluster structure have maintained their project numbers for tracking purposes and been realigned to the new sectors as outlined in table 2.1. To identify individual projects within the new SOT structure, refer to Annexes 1b and 2b in Section V.

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    Table 2.1. Approved and Funded Projects, 1 January to 30 June 2008

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    2.5. UNDG ITF Project Approval Process

    During this restructuring period, the submission of UNDG ITF proposals, and the existing pipeline, was temporarily suspended to ensure that all new UNDG ITF proposals were developed in compliance with the UNCT and ICI strategic priorities as well as rigorously reviewed utilizing the new UNCT coordina-tion structure. During this period the UNDG ITF Steering Committee, SCSO and UNCT worked at modifying the exist-ing UNDG ITF proposal development and review procedures to ensure they were aligned with the new UN Iraq Strategy and utilizing the technical knowledge available within the coordination structure. The main changes in the process focus on the decision to move away from supporting larger infrastructure projects in favour of providing capacity development and technical assistance, strengthening joint pro-gramming and promoting results-based programming. The process has also been strengthened through the formalization of the project concept note at the early stages of the process and the introduction of various new or restructured technical and review bodies (SOTs, BPG and PRG) that include enhanced donor and NGO participation. To accommodate the new emphasis on capacity development and joint programming, the SCSO facili-tated a collaborative process with Participating UN Organizations, on behalf of the Steering Committee, to redesign the proposal submission templates and the proposal review criteria to ensure that adequate resources (time, money and human resources) were allocated to support these new objectives. The Steer-ing Committee TOR and Rules of Procedure are currently being revised to include the revised project proposal submission templates. The revised UNDG ITF proposal review and approval process is summarized below: 1. Participating UN organization, in consultation with the GoI partner(s), prepares a Programme or

    Project Concept Note (PCN) that is in line with the ICI and NDS, and receives a letter of endorse-ment from the relevant government partner(s).

    2. The PCN with the accompanying government endorsement letter is reviewed by the relevant SOT, endorsed and the relevant documents are forwarded to the SCSO.

    3. The SCSO documents the relevant information and forwards it to the ISRB, which then has a five-day ‘no objection’ period to respond and endorse the PCN.

    4. With the ISRB endorsement, the participating UN organization proceeds to develop a full proposal, with the relevant line ministries, and submit it to the relevant SOT for review. The SOT will consult with the SCSO and present a final document that is then submitted to the PRG.

    5. The PRG reviews the proposal and either endorses, endorses with comments or rejects it. 6. Once a proposal is endorsed by the PRG, the proposal is forwarded to the ISRB (with the exception

    of electoral proposals, which are fast-tracked*). 7. Following ISRB approval, the SCSO informs the Steering Committee Chair and a meeting of the

    Steering Committee is convened within two weeks of ISRB approval. 8. The representative of the participating UN organization and SOT leader present the final proposal to

    the Steering Committee. The Steering Committee will approve, approve with comments or reject the proposal. Approved proposals are duly signed and forwarded to the MDTF Office for release of fund within one week of signature.

    * Fast Track procedure enables critical time bound initiatives to be processed for review and approval on a priority basis.

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    2.6. Monitoring and Evaluation

    As highlighted earlier, during the reporting period, measures to enhance the staffing capacity of the Steer-ing Committee/SCSO, as recommended by the PricewaterhouseCoopers 2006 UNDG ITF Programmatic Review, were forthcoming and the approval and recruitment of a professional M&E officer based in the SCSO took place during the reporting period. The M&E officer is part of the Resident Coordinator/Steering Committee Monitoring and Evaluation Unit. The unit is composed of a M&E advisor, funded by AusAid, and the M&E officer funded through the UNDG ITF direct cost budget. The unit is mandated to plan, develop and implement an integrated M&E system for the UN Assistance Strategy for Iraq with a focus on the UNDG ITF. The M&E officer will report directly to the Head of the Steering Committee SCSO and provide direct support to Participating UN Organizations. The intention is to provide technical support and advice to Participating UN Organizations in the development of strong monitoring and results frameworks during the project development stage as well as subsequent results based reporting. The M&E officer will also work with the SOT in the preparation of routine reporting and monitor progress toward the achievement of sector outcomes. Finally, the M&E officer will collaborate with the MDTF Office in the preparation of the six-month consolidated reports.

    3. Project Approval and Implementation Updates

    3.1 Project Approval Status During the current reporting period, 1 January to 30 June 2008, seven new projects, including one joint programme, were approved by the UNDG ITF Steering Committee and funded for a total of $26.38 mil-lion. As of 30 June 2008, the total number of approved projects and joint programmes grew to 140 (1803 individual agency projects) for a total amount of $1,111 million including a total of 23 joint programmes. During the third quarter of 2008 (1 July to 30 September), no additional projects were funded due to the restructuring of the UNCT and UNDG ITF proposal submission procedures.

    3 Throughout the report the number of projects shown under ‘Agency’ will be more than the number of projects shown under ‘Sector’ because a joint programme, implemented by two or more agencies, is counted as one project under a sector while it is reported separately by each agency for financial reporting purposes.

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    Table 3.1. Approved and Funded Projects, 1 January to 30 June 2008

    A5-23 Toward Sustainable Development of Inland Fisheries in Iraq 3,000,000 FAO 23-Mar-08

    C10-10 Local Government Association and Urban Development Capacity Building 1,985,256 UN-HABITAT 18-Mar-08

    D2-24 Cholera Outbreak, Early Detection and Mortality Reduction 4,433,172 WHO/UNICEF 17-Jan-08

    D2-22Enhancing the Iraqi Institutions' Capacity in Analyzing and Reporting Food Security and Vulnerability in Iraq

    1,151,317 WFP 18-Mar-08

    F8-06 Improving Access for IDPs and Returnees to Acceptable Shelter Solutions 5,150,304 UN-HABITAT 18-Mar-08

    G11-16 Support to Electoral Observer Groups in Iraq Phase III 6,243,599 UNOPS 17-Jan-08

    G11-17Provision of Communication Support and Technical Assistance to the IHEC at the HQ and Governorate Electoral Office Levels

    4,421,300 UNOPS 17-Jan-08

    26,384,948

    Project Project Title Funded Amount (US$) AgencySteering Committee

    Approval Date

    Grand Total

    3.2 Project Implementation Status The status of UNDG ITF project and joint programme is monitored throughout the reporting period to ensure accurate records are maintained and verified with the SOT, SCSO and Participating UN Organiza-tion to confirm its accuracy at the time of reporting. Table 3.2 provides an update of the status of projects as of 30 September 2008 and includes the number of approved projects, including joint programmes, ac-tive projects as well as projects that have been operationally closed, and both operationally and financially closed. The current status is consolidated in the following table that has been modified according to the new SOT coordination structure. Table 3.2. Status of Project Implementation at Sector Level, as of 30 September 2008

    Active Operationally

    Project Closed

    Education 25 10 15 19 6Water & Sanitation 15 8 7 11 4Health & Nutrition 21 13 8 17 5Housing & Shelter 3 1 2 3 0Food Security & Agriculture 19 14 5 14 2

    Protection 10 5 5 3 1Governance 25 11 14 15 3Economic Reform & Diversification

    22 14 8 16 2

    140 76 64 98 23

    Sector Timeline/ Budget

    Revision

    Joint Programmes

    Total # Projects

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    3.2.1. Contract Commitment & Disbursement Project Implementation Progress A total of 180 agency projects have been approved under the UNDG ITF as of 30 June 2008 with no new approvals between July and September 2008. The agencies’ commitment and disbursement figures pro-vided as of 30 June 2008 indicate steady implementation progress with 64 percent of projects having dis-bursement rates over 50 percent and average disbursement rate of 69 percent. The following tables pro-vide information on the status of projects in relation to contract commitment and disbursement rates. Table 3.3 below demonstrates how many projects have reached specific contract commitment and dis-bursement thresholds. As of 30 June, 57 percent of the 180 approved individual agency projects have committed 80 percent or above of the funds transferred to the Participating UN Organizations and 42 per-cent of projects have reached 80 percent or above disbursement rates.

    Table 3.3. Contract Commitment and Disbursement Rates, as of 30 June 2008

    Number of Number of Projects Projects

    41 100% 22 100%61 80-99% 53 80-99%29 50-80% 35 50-80%49 Below 50% 70 Below 50%180 Total 180 Total

    Contract Commitment Rate

    Contract Disbursement Rate

    Table 3.4 below shows an increase in contract commitments by individual projects between 2007 and 30 June 2008. During this period, four additional projects successfully committed 100 percent of transferred funds and 14 projects increased commitments above 50 percent, demonstrating steady implementation progress.

    Table 3.4. Annual Contract Commitment Rates, as of 30 June 2008

    Project Start % of Contract Commitments by Total Number of Projects Year 100% 80-99% 50-80% Below 50% 2007 37 52 20 63 2008 41 61 29 49

    The table below provides a comparison of contract commitment and disbursement rates between the second and third quarters for 2008. The average contract commitment and disbursement rates increased by four percent respectively between quarters with contract commitment rates above 80 percent for all sectors and 100 percent of Housing and Shelter SOT projects committed.

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    Table 3.5. Sector Contract Commitment and Disbursement Rates, as of 30 June 2008

    % Committed % Disbursed % Committed % Disbursed Education 81 66 85 70Water & Sanitation 83 63 86 68Health & Nutrition 80 63 89 66Housing & Shelter 100 90 100 90Food Security/ Agriculture 76 68 81 73

    Protection 77 75 77 77Governance 86 82 87 86Economic Reform/ Diversification 70 60 75 66

    Average 80 69 84 73

    Sector Contract Rate as of 30 June Contract Rate as of 30 September

    3.2.2 Projects in the Pipeline As previously reported, during most of the reporting period and through the third quarter of 2008 the ap-proval of UNDG ITF proposals was temporarily suspended to ensure that all new UNDG ITF proposals were developed in compliance with the UN and ICI strategic priorities as well as rigorously reviewed uti-lizing the new UNCT coordination structure. To further ensure alignment with the new strategic priorities, a new pipeline was prepared and is pre-sented in this report. The pipeline includes projects that have been conceptually cleared by the ISRB and are under formulation. It is anticipated that the approval of projects in the pipeline will begin in October 2008. It is anticipated that not all projects currently in the pipeline will be funded through the UNDG ITF, because of resource limitations. The project pipeline may also be found in Section 5, Table 5.9.

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    Table 3.6. Projects Pipeline, as of 30 September 2008

    Project Title SOT Agency ITF FundsImprovement of Water Supply and Irrigation Provisions through the Rehabilitation of Abu Sabkha Pumping Station

    AFSSOT FAO 3,000,000

    Strengthening of Zoonotic and Trans-boundary Animal Disease Control Capacity of Iraqi Veterinary Services

    AFSSOT FAO 3,000,000

    Technology Acquisition to Re-start and Generate Economic Transformation AFSSOT UNIDO 3,000,000

    Developing Iraqi Agricultural and Agro-Industrial Data, Information Systems and Analytical Capacities. AFSSOT FAO and UNIDO 3,300,000

    Iraqi Civil Society Empowerment GOV UNOPS 4,215,312

    Support to the Development of Justice and the Rule of Law GOV UNDP 5,825,279

    Capacity Building for Local Governance GOV

    UNDP, UNHABITAT, UNICEF, WHO, UNESCO, UNFPA, UNIFEM, UNESCWA

    $5,841,517

    Support the Media in its Distinctive Role of Fostering Peace and Democracy GOV UNDP $5,840,789

    Support to Decentralisation of Basic Services Delivery GOV UNDP 30,000,000

    Support to Public Sector Reform GOV UNDP 30,000,000

    Techical Assistance to IHEC - Phase 2 GOV UNDP, UNDPA-EAD, UNAMI 3,114,825

    Cultural Resource Mapping Development of Cultural Policies for Gov't and Civil Society GOV UNESCO 3,750,000

    Capacity Development in Census and Surveys GOV UNFPA, UNDS 5,000,000

    Strengthening of PHC System in Iraq (Phase 2) HEALTH WHO and UNICEF 10,448,369

    Extended Programme for Immunization HEALTH WHO, UNICEF 1,590,000

    Strengthening Protection and Justice for Children in Iraq

    PROT UNICEF, UNICEF, HRO 3,000,000

    Support to the Expanded Emergency Response Fund PROT UNDP, OCHA 15,000,000

    Supporting Peaceful Co-Existence and Communal Harmony among Adolescents in Iraq EDUC

    ESCWA, UNICEF, UNAMI/HRO, UNIFEM, UNESCO

    5,000,000

    Master Planning and Capacity Development for Water and Sanitation Management in Select Governorates WATSAN

    UNDP, UNHABITAT, UNICEF, WHO 8,500,000

    Support for Private Sector Development ERDSOTUNDP, ILO, UNIDO, FAO, UNHABITAT, 32,850,000

    Improving the Housing Delivery System in Erbil SHELT UN-Habitat, UNDP 2,980,000

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    3.3 Timeline Extensions The UNDG ITF Steering Committee endorsed a guidance note in July 2006 for use in the review and ap-proval of budget revisions for the movement of funds within the approved budget and/or an extension of time for project implementation. Based on the guidance note, Participating UN Organizations submit formal requests to the DSRSG as the Chair of the UNDG ITF Steering Committee for approval of budget revisions and/or timeline extensions of Agency projects. As of 30 September 2008, a total of 98 requests for individual timeline revisions had been approved. This is an increase of 16 requests from the previous reporting period.

    3.3.1. Operationally and Financially Closed Projects and Joint Programmes As of 30 September 2008, a total of 64 projects and joint programmes within the SOTs were reported as operationally closed (73 individual agency projects). This is an increase of 16 new closures or 46 percent of the 140 total approved projects and joint programmes. Based on data as of 30 September 2008, the following table indicates the anticipated completion dates of UNDG ITF projects from 2005 to 2009. No new projects were confirmed by the MDTF Office as financially closed during the reporting period main-taining the total number of closed projects at eight. Table 3.7 provides a comparison of anticipated project closures at the agency level. The increase in project extensions can be linked to the reduced number of completed projects in 2007 resulting in a shift to closures scheduled for 2008 and beyond. For example, it was anticipated that 40 projects would have closed in 2007, but only 24 confirmed operational closures thereby shifting project closure to 2008 and 2009.

    Table 3.7. Annual Anticipated Project Completion, as of 30 June 2008

    Expected ProjectCompletion Year July-Dec 2007 Jan-June 2008

    2005 13 132006 27 272007 40 242008 81 662009 11 50

    Total Projects 172 180

    # of Projects to be Completed

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    Table 3.8. Operationally Closed Projects

    Agency AmountESCWA B1-10 Iraq Networking Academy Project 1,000,000

    B1-17 Iraq Networking Academy Project (Phase 2) 3,780,000

    FAO A5-01 Drainage Conditions in Agricultural Areas 5,126,600A5-10 Restoration and Development of Essential Livestock Services in Iraq 8,545,727

    ILO C10-02 International Employment Conference 321,000UNDP C9-02 Support to MoPDC 1,744,000

    C9-05 Capacity Building and Institutional Strengthening of Municipal Ministry Public Works 3,018,710C10-01 Iraqis Rebuilding Iraq 387,105C10-03 Iraqis Rebuilding Iraq-Phase II 2,777,323E3-06 Emergency WATSAN and Health Support for the Basra Governorate 4,919,519E4-06 Dredging of Um Qasr Port Approach Channel 24,742,359E4-09 Emergency Water Supply to Un/Underserved, Vulnerable in Baghdad and IDPs 1,058,652E4-10 Rehabilitation of Mussayib Power Station 15,510,982G11-02 Support to Electoral Process (Phase II) 11,245,944G11-03 Support to Elections (Phase III) 39,057,144

    UNEP A5-07 Strengthening Environmental Governance by Environmental Assessment/Capacity Building 4,700,000A5-11 Support for Environmental Management of the Iraqi Marshlands 11,000,000

    UNESCO A5-12 Capacity Building of Water Institutions 3,275,550B1-01 Vocational Education 2,758,274B1-05 In-service Training for Teachers 2,346,400B1-07 Protecting Iraqi Cultural Heritage 2,092,000B1-08 Literacy and Life Skills Development 2,230,400B1-13 Education Management Information System 1,500,000B1-14 Revitalization of Technical and Vocational Education (Phase 2) 3,000,000B1-15 Strengthening Secondary Education (Phase 1) 4,721,300B1-18 Textbooks Quality Improvement Programme II 7,100,000C9-10/c Media & Human Rights: Promotion of Freedom of Expression and Human Rights in Iraq 1,813,614C9-21/b Strengthening of the Constitutional Process and Good Governance 1,047,039G11-07 Support for Fair, Safe and Professional Media Coverage 396,389

    UN-HABITAT B1-11 Rehabilitation of School Bldgs in Lower South Iraq 5,270,152B1-22b School Rehabilitation and Capacity Building - Phase 1 6,631,818E3-05 Community based integrated WATSAN Rehabilitation and Mgmt Project 1,983,516E4-04 Strengthening Capacity of Housing Sector 5,965,638E4-11 Strengthening Urban Sector by Building Capacities in Municipal Planning/Management 2,550,216

    UNHCR F8-02 Return and Re-Integration of Iraqis and Others of Concern in Southern Iraq 7,126,200F8-03 Return and Re-Integration of Iraqis and Others of Concern In Northern Iraq 2,962,000F8-05 Authorities and Civil Society Organizations in Addressing Displacement Needs 2,400,000

    UNICEF B1-06 Strengthening Primary & Intermediate Education (Phase 1) 34,253,604B1-12 Strengthening Primary & Intermediate Education (Phase 2) 16,230,000B1-19/a Integrated Community-Based Project to Deliver Quality Basis Social Services 12,600,360B1-24 Provision of Learning Materials for All Primary Level Students in Iraq 18,172,619D2-06 Strengthening Immunization Services in Iraq 7,900,000E3-01 Rehabilitation of Water and Sanitation Systems in Southern Iraq 21,500,000E3-09 Emergency Water Supply in Unserved/Underserved/Vulnerable Areas in Baghdad and IDPs 1,058,652E3-13/b Rehabilitation of Water Supply Systems in Select Locations in Wasit Governorate. 1,537,933E3-13/d Rehabilitation/ Extension of Water and Sewerage Networks in Select Locations in Kirkuk City 2,563,207

    UNIDO A5-06 Promotion of Cottage Industries 5,013,000E3-02 Rehabilitation of Chlorination Plant 771,330

    UNIFEM C9-04 Women Solidarity Toward Active Participation in Elections 1,897,667C9-10/b Iraq National Constitution and Referendum Awareness Campaign (INCRAC) 1,670,010

    UNOPS A7-02 Explosive Ordnance Disposal (EOD) capacity building and