1. Managing aid in Rwanda: current structures and procedures Aid on budget Workshop

2. Presentation Outline
Overview of evolving policy context and aid management structures
Overview of Rwanda’s Aid Policy
Institutional set-up for aid effectiveness
Some key challenges
Aid management procedures
Aid management information systems-DAD

3. Evolution of policy context and structures for aid management
Post-crisis recovery
Transition period
PRSP1
PRSP Evaluation
EDPRS
(PRSP 2)
Emergency and humanitarian aid
Project support / IFI loans
Project Support and Budget Support (incl. PRSC)
Project Support, Budget Support, Development of SWAps…
Project support, GBS, SBS (↑ SWAps)
2007-
Implementation and eval. of PRSP1
Policy and planning framework
Development of EDPRS and strenghtening sector strategies
Aid Policy
Annual high-level GoR and Development Partners Meeting
Forums for dialogue and coordination
Budget Support Harmonisation Group
DPCG and sector clusters
CEPEX
External Finance Unit (MoF)
Institutional framework for aid management
… with support from Aid Coordination Unit (UNRCO)

4. Rwanda’s Aid Policy: A national vision for aid and its effectiveness
What is the Aid Policy?
National policy developed by GoR and approved by Cabinet (July 2006)
Best seen as a set of “guiding principles” for the delivery of aid in Rwanda
A vision for the implementation of the PD
How was it developed?
GoR-led process, with limited external assistance to the process and document
Extensive consultation across GoR and development partners over > 1 year

5. Rwanda’s Aid Policy: Key features
Clear objectives that fit with Paris Declaration.
Comprehensive: addresses all types of assistance.
Sets out GoR preferences:
Preferred aid modalities: General Budget Support > Sector Budget Support > Projects.
All aid to be on-budget and on-plan.
Increase use of GoR systems in delivery of aid.
Pooling of funds, and delegated cooperation, to be encouraged.
Intra-GoR division of responsibilities clarified.
The need for further strengthening of GoR planning, PFM and aid management systems.
Outline provisions for implementation, backed up with a more detailed implementation plan.

6. Institutional framework for implementation of Aid Policy
Aid Policy Implementation Committee
MINECOFIN, Office of the President, PRIMATURE, MINAFFET, MINALOC, CNLS, HIDA
 Provides high-level oversight and strategic direction
Technical Secretariat
External Finance Unit, MINECOFIN
 Works with GoR bodies and DPs to implement the interventions identified in implementation plan
GoR Entities
Development Partners
LINE MINISTRIES, LOCAL ADMINISTRATIONS, and SEMI-AUTONOMOUS BODIES work with Secretariat to improve intra-GoR division of labour, strengthen GoR systems and human resources
OFFICIAL DONORS integrate aspects of the Aid Policy in their planning; maintain dialogue with GoR
NGOs collaborate with MINALOC and MINECOFIN to ensure assistance is provided in an effective manner

7. A new framework for M&E and dialogue with partners, aligned to the EDPRS

8. Some key challenges…
Need to ensure that Aid Policy is mainstreamed across GoR institutions (“project shopping” persists).
Need to think about how we assess degree of alignment with EDPRS and sector strategies.
Some donors reluctant / unable to adapt despite advances on part of GoR.
Need to ensure stronger GoR lead in capacity development for aid management.
Further progress on the SWAp agenda (must come from the sectors themselves).

9. The aid management chain: Aid policy provisions- step 1.
Evaluation
Initial Conception
Proposals
Negotiation
Agreement
Implementation
Line ministry, district or government body seeking assistance undertakes initial discussions with potential donors with the aim of developing initial ideas.
Concern that ideas are government-owned and respond to priorities identified in sector strategic plans.
At this early stage, negotiations are not undertaken, nor are agreements signed.

10. Aid policy provisions- step 2.
Evaluation
Initial Conception
Proposals
Negotiation
Agreement
Implementation
Line ministry, district or government body writes to MINECOFIN with details of proposal
MINECOFIN examines proposal for fit with national policies and priorities
Line ministry (or similar GoR body) retains responsibility for ensuring that proposal is technically sound throughout
MINAFFET consulted; may raise objection

11. Aid policy provisions- step 3
Evaluation
Initial Conception
Proposals
Negotiation
Agreement
Implementation
Line ministry, district or government body meets with MINECOFIN and MINAFFET to agree on GoR position in negotiations.
Negotiations involve relevant line ministry, district or Gvt body, MINECOFIN, MINAFFET and donor(s). MINECOFIN provides its expertise in negotiation at this stage

12. Aid policy provisions- step 4
Evaluation
Initial Conception
Proposals
Negotiation
Agreement
Implementation
MINECOFIN oversees fulfilment of agreement effectiveness (through its External Finance Unit)
Agreements between GoR and donor organisation are signed by MINECOFIN for the GoR (unless donor requires MINAFFET signature)
Details of agreement recorded on relevant GoR systems

13. Aid policy provisions- step 5
Evaluation
Initial Conception
Proposals
Negotiation
Agreement
Implementation
The line ministry or other GoR body will normally be responsible for overseeing implementation of an assistance package.
Implementing body should engage in regular dialogue with MINECOFIN / CEPEX, particularly where issues arise requiring attention (e.g. delays to disbursement)

14. Aid policy provisions- step 6
Evaluation
Initial Conception
Proposals
Negotiation
Agreement
Implementation
For project support: line ministry or other GoR body overseeing implementation works with CEPEX to ensure follow-up
Budget support: line ministry is responsible for the collection, aggregation and dissemination of appropriate performance data to donors. Such data is made available to MINECOFIN for the APR.

15. Aid management database- DAD
DAD is a web-based tool designed for ODA data collection, tracking, analysis, and planning.
DAD is designed for use by national governments and the broader assistance community (bilateral donors, multilateral donors, IFIs, etc.).
DAD Rwanda was launched in March 2006.

16. Why a DAD in Rwanda?
Launched in March 2006, DAD Rwanda was developed with the aim to achieve the following:
Enable the GoR to drive the processes of aid management by:
Establishing a single repository of all ODA in Rwanda and replace old, inefficient systems
Use the tool to monitor ODA and its utilisation
Enable the GoR to do “gap analyses”, facilitate planning process and resource mobilisation
Institutionalise transparency & accountability between GoR & DPs

17. Process and type of data
Project level ODA data
Title, Sector, Location, Donor, Implementer, Nat’l Counterpart, Commitment, Disbursement, Modality, etc..
Donor agencies report via the web interface (1 Focal Point per agency)

18. Linkages to budgeting process
National Budget
Development Budget
Recurrent Budget
Interface
Interface
BudgetMaster
DAD Rwanda

19. Selected key lessons
Mainstreaming of an Aid Policy requires extensive input and ownership over the policy from across government at both technical and political levels.
Institutions coordinating aid need clear mandates (duplication results in overlap and confusion).
Source of data during the aid management information “chain” should be clarified and responsibilities defined.

20. Thank you