DPG – August 11, 2009 AMP Implementation in Tanzania. Aid Info in the Broader Context of Ownership, Alignment and Mutual Accountability Ministry of Finance and Economic Affairs Dar-es-Salaam 1

Aid Environment in Tanzania Tanzania ODA overview Projected Grants and Loans for FY 2009/2010 – 3,181Tshs Billion (2,585 USD) Million 33% of total annual budget from grants and loans due to current economic crisis. Historically between 35%-42% Tanzania receives ODA in three forms: General Budget Support (38%) Baskets (18%) Direct Project (44%) More than 40 DPs providing ODA (traditional and emerging donors) 2

Aid Environment in Tanzania Tanzania Efforts made to enhance aid effectiveness through: Tanzania Assistance Strategy (TAS) 2001 Joint Assistance Strategy for Tanzania (JAST) 2006 which provides mid-term framework for aid effectiveness and implementation of internationally agreed agendas on aid effectiveness (Rome, Paris, Accra, etc.) Emphasizing principle of National Ownership and Leadership with broad-based stakeholder participation Country-led partnership representing a paradigm shift towards putting Tanzania in the driver’s seats Shift from external accountability to domestic accountability Mutual accountability (to move towards better alignment and greater predictability in ODA disbursement) 3

Aid Environment in Tanzania Key Challenges (informed from PD Survey 2008): Aid on Budget (still high volume of ODA provided outside of system and off-budget) Predictability – particularly outer year but also lack of in-year predictability challenges GoT ability to plan and budget effectively and strategically Accountability – lack of aid disbursement information and expenditure information challenges domestic accountability 4

Background and Challenges of Previous System Excel spreadsheet was used as the means of recording aid flow information There was no centralized database system/mechanism to store, process, generate and share different reports/ information on aid Difficult to track and validate data received from donor partners Report generation was time-consuming and costly It was difficult to capture data identifying usage of funds by priority area and sector Necessity to improve information flows across government departments was not being met. Need to improve timeliness and management of Aid data. 5

Rationale of Moving to AMP I Support MOF management of ODA in conjunction with Budget Process and Joint Assistance Strategy for Tanzania (JAST) monitoring i. Allow all MOFEA-required reports to be predefined and generated on demand, including on project/program results and outputs ii. Better capture donor non-exchequer disbursements/payments to be accounted for in IFMS (D-funds) iii. Meet new monitoring and reporting needs on JAST and Paris indicators iv. Facilitate reporting of donor commitments / projections and actual disbursements on all ODA (to Government and non-state actors) to MOF, increasing accuracy and data quality (‘visibility’ incentives of donors to report on time) 6

Rationale of Moving to AMP II Increase transparency and accountability by introducing broad access to a data repository on ODA-funded projects/programs i. Make ODA data visible online to different users through predefined access rights to AMP ii. Increase insight of donor agencies and government institutions into each other’s work process status iii. Seek to capture and facilitate the involvement of implementing partners and non-state actors in implementing ODA funds and programs. iv. Explore integration of IFMS and AMP, which may allow donor agencies, MOF and MDAs to see IFMS expenditure data for on-budget ODA funded projects and basket funds. v. Facilitates information sharing among MDA,Regions and LGAs in the country systems (debt management, budgeting, grant/loan management, planning tools) 7

Rationale of Moving to AMP III Increase donor confidence in government systems through an improved data recording and reporting system, and enhance government-led coordination. i. Facilitating timely and comprehensive reporting; enable a comprehensive view of all aid resources within a country; ii. Helping to monitor progress toward national development objectives; iii. Standardize reporting terminology among government staff and donors, allowing harmonization of reports to multiple donors 8

Progress So far 30 External Finance Department staffs have been trained as advanced users. Approximately 600 projects/programmes are entered in the systems. 50 development partners have been trained in the system and using the system. One Ministry trained as pilot Data verification and validation exercise including DPs is underway. 9

Progress So Far Draft first ODA report using data from the system has been produced DPs have access to the system to input project information A Guidance Note has been developed for MDAs and DPs. defines the roles and responsibilities of the users in the aid management process Facilitates information sharing among MDA,Regions and LGAs in the country systems (debt management, budgeting, grant/loan management, planning tools) definitions of aid related terms Developed a formal reporting schedule for DPs and MDAs 10

Key Challenges in Implementation of AMP Data collection and validation still handled by a few colleagues within MoFEA/EFD. AMP as a system needs to be grounded in the aid management process of wider GoT. Use of different financial management systems and standard/format challenges DPs. DPs should consistently provide useable and reliable information through the system using the guidelines provided by government. Making sure that all stakeholders follow the stipulated reporting schedule. Expanding to other Line Ministries involves increase in capacity and resources. Aligning definitions of aid terminology specifically related to the Tanzania aid process. Some DPs continue to report outside of the system or do not report at all making it difficult to provide accurate /complete and timely reports. Connectivity (bandwidth) vs. expansion | DP IT security protocol. 11

Way forward Train management Level on the system An official launching ceremony of AMP is planned to take place on the second week of September 2009 Operationalising the system to MDAs as well as conducting training. This is planned to begin in September, AMP Guidelines to be further embedded into the ODA management manual To produce regular ODA quarterly and yearly progress report 12

Preparing for the Launch mid Sept 2009 Complete data entry exercise before August 31, 2009 Feedback on Draft ODA report Preparation and publishing of annual launch ODA report Finalize MDA/DP reporting schedule Finalize guidance note 13

Status of AMP Implementation - data entry - May Comprehensive data 1Belgium 2UNICEF 3Kfw 4Canada 5Switzerland 6Sweden 7UNDP 8IFAD 9France 10Ireland 11EU Partial data 1Norway 2ADB 3WFP 4Japan 5Gtz Incomplete records 1Global Fund 2Denmark 3DfID 4Netherlands 5USAID 6Finland Pending entry 1IDA 2BADEA 3OPEC 4UNFPA 5NDF 6Korea 7China Not recorded in AMP 1FAO 2ILO 3Italy 4Kuwait Fund 5Spain 6UNAID 7UNESCO 8UNHABITAT 9UNHCR 10UNIDO 11WHO

Thank you! 15