Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

Overview 1.ADB’s Governance’s Work and Mandate 2.Multi Donor Governance Trust Fund 3.Way Forward

Governance at the forefront Dec 2008Governance as priority area for the ADF Mid-Term Review May 2008 Governance Strategic Directions and Action Plan for Dec 2007Governance as strategic pillar of the Fund (ADF-11) July 2006Creation of dedicated operational department (OSGE) January 2000 Adoption of an enabling governance policy

Promoting good financial governance in Africa The Bank focuses on economic and financial governance at three levels: Crystallize the African Voice on Governance  Tailored approaches (FS, LICs, MICs) to strengthen country systems for managing public resources  Strengthen governance in key sectors – particularly infrastructure energy, roads and transport, water and sanitation, natural resource management  Support institutions, initiatives and networks promoting regional standards and codes of good financial governance (ATAF, CABRI, AFROSAI,etc)

71 Operations covered 34 Regional Member Countries (RMCs) 2008: UA million of ISPs (2008) promoted economic and financial governance 2009: 25 governance-related operations amounting to UA 2.16 billion An Active Portfolio Bank Group Lending Operations in Support of Governance ( )

OSGE Results/Outcomes Achievements in 2008 Achievements in operations (18 PBL, 1 ISP) 21 financing instruments (ADB, ADF-L, ADF-G, FSF, AFCR) UA 682 million 25 operations (23 PBL, 2 ISP) 20 financing instruments (ADB, ADF-L, ADF-G, FSF, AFCR) UA 2 billion

Multi Donor Governance Trust Fund- Nordic Trust Fund Nordic Trust Fund on Governance ( ) 40+ initiatives, 5+ million USD Main lessons (August 2008 evaluation): Enhance oversight and quality at entry, explore frontier areas, flexibility to respond, focus on demand side, extend to other donors DFID Trust Fund (2008) Strengthen Bank capacity and quality at entry; targeted support Lessons from other Trust Funds Coordination and oversight, strengthening Bank capacity, delegate authority for flexible response, support decentralization Building on experience and lessons learned:

Multi Donor Governance Trust Fund Overarching goal: Assist African countries to build capable and responsive states by strengthening transparency and accountability in the management of public resources Specific objectives: Becoming a catalyst for funding and a platform for knowledge where diverse development partners are encouraged to harmonize efforts Bring innovative approaches in the area of economic and financial governance; Serving as a vehicle to incorporate new development actors; Enhancing and upgrading the Bank’s own capacity to deliver assistance

Focal Areas Anticorruption – Promotion of integrity and credible oversight institutions and accountability systems; anti-bribery and business integrity Financial governance – Revenue management (tax & non-tax), pro-poor budgeting, gender budgeting, expenditure management, public procurement, debt management Economic governance – Public private partnerships, support to the investment climate and business environment Sector governance – Governance and corruption risk management, corporate social responsibility, high risk sectors (extractive industries, natural resources, infrastructure)

A transparent, agile and accountable structure Oversight Committee Technical Committee Coordinator and Secretariat Task Managers Sponsor Departs Focal Points Policy Setting Annual Review Approval of proposals above > 500 k Outreach Screening Implementation Knowledge Management Outreach Client Service First Screening Cross-Sectoral Agreement Strategic Alignment Enhanced Transparency Improved Quality Increased Visibility Strengthened Accountability Improved Supervision Synergy with Bank work Better Client Orientation Review, Selection, approvals of Proposals < 500 k

Multi Donor Governance Trust Fund- Nordic Trust Fund The Multi Donor Governance Trust Fund- The Government of Norway has pledged 6.4 million NOK (approx USD million) and Switzerland has pledged CHF 3 million (approx. USD 2.99 million Bank capacity and quality at entry; targeted support The Fund will be launched in April 2010 Next Steps:

Way Forward OSGE the leading department- active portfolio- in the Bank has a need for more human resources Secondments: 1 Germany, 1 United Kingdom TA: 1 France, 1 Norway (untied) Future needs strengthening rather than shifting Bank capacity; through secondments, special leave, staff attachment, trust fund coordinator In depth sector expertise (revenue, budgeting, auditing) Gender and governance (mainstreaming) Support to the APRM, procurement network Decentralization of sector expertise (regional hubs and field offices )

(title) FEEDBACK? QUESTIONS? READY TO JOIN? For more on our work: Contact: Carlos Santiso (Manager, OSGE1)