1. Podgorica, 14-15 May 2007 Government of the Republic of Serbia
Ministry of International Economic Relations
Strengthening National Capacities
for Efficient Management of External Assistance
Linking donor funding to the state budget
Gordana Lazarevic
Assistant Minister
Министарство за економске односе са иностранством настоји да кроз своје свакодневне активности промовише Стратегију борбе против сиромаштва, као и да свесрдно помогне њену реализацију у блиској сарадњи и координацији са Тимом за имплементацију Стратегије за смањење сиромаштва.
Министарство за економске односе са иностранством у борби против сиромаштва учествује између осталог и стварањем повољног макроекономског оквира за спровођење ССС, залагaњем за одржив привредни раст, привлачењем страних директних инвестиција, координирањем процеса приступања Светској трговинској организацији, упознавањем међународне донаторске заједнице са постојећим пројектима у области смањења сиромаштва.
Podgorica, May 2007

2. Basic principles on government organization
Tasks – what has to be done
Responsibilities – who is doing what
Coherence / Consultations/ Coordination
DECISION MAKING
Monitoring
Reporting
Gap analyses
Improvements/ institutional adjustments/trainings
First line means simply that plan of activities MUST exist to be followed and measured the success. These three parts of clearly shows two parts of activities of administration/civil service – preparation of documents to be politically approved. T

3. Key players in programming
Case of GoS
MIER – programming/coordinating of development assistance
MoF – annual budget planning
Secretariat General – annual work plan of GoS
Ministry for Public Administration – uniformity od internal organization in the ministries
These are main players in the reforming and improving administrative organization in the GoS. Special regular meeting on the major topics/ how to improve planning, coherence of policies, coordination of the work and effectiveness of the use of the funds. Importance of uniformity in internal organization. SG GoS – to include mayor activities on the GoS Agenda. Need of permanet coordination. Anticipation of task which will come out of planning activities – reform process linking.

4. Key Tasks in Programming of International Assistance
Strengthening of capacities in LM for planning, project identification, drafting, monitoring and reporting
Towards institutionalization of planning and programming
Improved alignment of donor funded activities with national priorities
Ensure consistency and complementarities between donor programs and budgeting process
Increase of the aid predictability and integration in the operational planning and budget preparation process
Further improvement of the ISDACON IS as a planning and monitoring tool and linking with the budget preparation process
Implementation of the sector support concept in pilot sectors

5. Tasks of line ministries
Strategic planning and programming in the sector
Mid – term/annual planning (GOP)
Preparation of projects
Prioritization within sector/approval of sector priorities
Sector coordination/ focal point for coordination of planning activities, same start of processes
Joint project – short description. Stress that these are processes not one time jobs.

6. Mainin chalanges
Internal – introduction of programmatic budget – 2 years pilot program in place
External – introduction of IPA –new tasks and responsibilities of national government
How to achieve linking between external assistance and national goals
Hard task – no NDP – Exceptional importance of overarching national policies – facilitate implementation and fund rising. Clearly shows that building structures and capacities must start very early oth mandateew mandate mandateise –permanet delays and problems in implementation and absorption capacities. Lead the process do not wait and follow.

7. Government mandate MIER to coordinate all external assistance
To increase the effectiveness of foreign aid in facilitating the achievement of Government policy objectives as set out in strategic documents
Reaching sustainable solutions and mechanisms aiming at further improvement of foreign assistance delivery

8. MIER Institutional Respond
Internal organization
MIER/NIPAC
DACU
Programming
IPA I and
Bilateral donors
CBC
PCMU
IPAII
ISDACON
IT support
The Ministry of International Economic Relations of the Republic of Serbia (MIER), in accordance with the Law on Ministries is competent for the coordination of activities in the field of planning, programming, ensuring and utilization of grants and other forms of foreign development assistance.

9. MIER-relations with stakeholders
EU partnership, MIPD, annual allocations of the funds
EU Commission
DG enlargement
DEC
Contracting, implementing, monitoring
Contracting projects with final beneficiaries
Setting priorities, planning, programming, project collection/evaluation. Submission to NIPAC and JMC
MIER/DACU
Form Ministries relations are going to agencies and other relevant govermental institutions. MIER implements all Treaties with EU- Financial Framework agreement on IPA implementation, Annual Financial contracts. Strong institutions, permanent communication with the same institution, building institutional memories, implementation of same procedures – impartiality, clear identification who is lagging – extend emergency support (STE) to keep the level of quality and participation in the processes.
MINISTRY
MINISTRY
MINISTRY
MINISTRY

10. Context
Improvement of coordination of various reform processes and progress towards integrated planning, budgeting (allocation of internal and external resources), monitoring and reporting, based on a result-oriented approach
Reform of the budget planning process by introducing programmatic classification during the budget preparation process
Strengthening functions of strategic and operational planning in public institutions, Obligations of donors and partner countries defined in the Paris Declaration on Assistance Effectiveness, which was adopted in Paris on March 2, 2005, in particular the strengthening of national ownership over the development process, harmonization of donors with national development strategies and prioritization, harmonization of donor activities and management with view of achieving results
Commitment to EU integrations, in particular the aims, procedures and capacities for using EU funds
Capacity buildings – There is no capcity building without institutions .

11. Main Goals Improved aid effectiveness and efficiency
Improved coordination and planning of development assistance
Improved aid effectiveness and efficiency
Improved coordination of internal and external funds planning
Alignment of development assistance with national priorities
Capacity building for funds management (especially EU funds)

12. Development Aid Coordination Unit
MAIN ACTIVITIES
Programming of international assistance
Reporting on international assistance
Registering aid flows (ISDACON IS)
STRATEGIC FRAMEWORK
Document “Needs of the Republic of Serbia for International Assistance in the Period ”
Guidelines For Programming International Development Assistance for the Republic of Serbia in 2007 and Reporting on International Assistance
Action plan for programming of IPA 2008
Piloting Sector support approach
Report on development programming processes of IPA 2007 – Gap analyses
TOOLS
ISDACON IS
GOP
Task forces in line ministries including NBS

13. Programming of International Assistance
PROCESS
Introduction of joint Calendar for programming of international assistance
(identification of project ideas) based on the following:
Coordinated and joint project proposal identification phase
Targeting project proposals with the beginning of implementation expected in 2008 and 2009
Calendar structured around IPA programming procedure, defined in Action plan for programming of IPA 2008
Programming is sector based, including regular consultations with main stakeholders and the donor community
MoF, SEOI included to follow macroeconomic and political criteria.

14. Programming of International Assistance
SERBIA
National Strategy for EU Integration
Needs of the Republic of Serbia for International Assistance in the Period EU
European Partnership / SAA
MIPD
Guidelines For Programming International Development Assistance for the Republic of Serbia in 2007 and Reporting on International Assistance
Programming of current year
IPA Implementing Rules
Similar matrix can be created for bilateral donors and their activities everything included in Guidelines for programming international assistance

15. Programming of International Assistance
Priority project identification based on:
“Needs of the Republic of Serbia for International Assistance in the Period ” document
Budget/internal resource financing possibilities
Information on expected donor support in the period

16. Programming of International Assistance-2007
Project ideas
April
Мay
Јun
July
Aug
Sep
Оct
Nov
Dec
DOCUMENT “Needs of the Republic of Serbia for
International assistance for ”
Identification of project ideas
Development of project proposals – IPA** 2008
Development of Project proposals according to IPA Format and
consultations with the EC Delegation and EAR
Adoption of MIPD*
EC- IPA
Implementing Rules
Short listed
and wider list
of project
ideas
Action
Plan on
programming
Identification of
project ideas
Development
of Logframe
Guidelines for
programming
of internatio-
nal aid
TA by local experts for IPA programming-MIER
Project Preparation Facility
Administrative
check
Identification of
donors
Registration in
ISDACON IS
Short listed project
ideas and development
of project proposals
training/ workshops
on programming
Development of project proposals – Other donors
Project ideas,
Logframe
Consultations with ministries and development
Partners on priorities and possible financing
Programming is extended to identify possible projects within current and forthcomming year.
Drafting project proposals according to procedures and
Timeframe and rules of individual donors
* MIPD- Multiannual Indicative Planning Document
** IPA- Instrument of Pre- accession Assistance

17. Co-ordinated planning, budgeting and foreign assistance programming processes
Year 2007 (n-1)
Year 2008 (n)
Year 2009 (n+1)
December January
December January
December January
GoS
Work
Program
GoS
Annual
Report
Final Budget
Memorandum
and Budget
Preparing
draft Budget
Memo (incl NIP)
LM preparing
Budget request
Final Budget
Memorandum
and Budget
Budget Execution
LM final
accounts
MFIN final
accounts
Final LM
GOP1 (07-09)
Preparing draft GOP1 (08-10)
in LM (EI, PRS, PAR
and sector strategy)
Prepare final
GOP1 (08-10) for LM
Implementation – Management by
performance using GOPs
Monitoring and Evaluation
Needs
Assessment
Document
(07-09)
Update Needs Assessment
document (n to n+2)
Joint
project
identification
by LM, MIER
and donor
community
for 2008 (n)
EU support IPA 2008
MIPD (n to n+2) drafting,
Consultations and approval
Programming of EU assistance including preparation of FICHE,
negotiation, intern-agency consultations and signing of FA
Detail design of projects / plan for implementation
Implementation of projects/programme (36 months)
Other international assistance
Individual Assistance
Strategy / Action Plans
Programming including detail design and plan for
Implementation
Implementation of projects/programme
The chart is based on the assumption of the 3 year rolling process where for each cycle one additional year is included. Hence to get full overview of activities the specific calendar year it is necessary to include activities from the previous two years.
1 GOP (Godisnji operativni plan / Annual Operational Plan): Three year rolling medium term planning document developed by line ministries (6 pilot ministries) comprising the detailed budgeted
operational plan for the first year. GOP planning methodology is designed to be used as basis for development of Government’s annual Work Program, budgeting according to the
programmatic classification, programming of international assistance, monitoring and reporting.

18. Coordinated planning, budgeting and foreign assistance programming processes
Improved coordination in planning external and budget resources
Annual operational action plans as the basis for budget planning and the NA
Consultative process (avoiding overlapping and Ensuring co-financing)
Next steps: Linking BPMIS with ISDACON

19. Building of Capacities for Planning, Budgeting and Aid Management
Manuals/Guidelines prepared and adjusted to the internal governmental rules of procedure
Training LM to use them
Project management /project preparation – became as obligatory part of training of civil servants within HRD
Tailored training support to LM- special facility to support project preparation STE and LTE
Capacity building of NIER/DACU to be able to identify problems in the processes
Focusing on external training within EU institutions or within MC- use of TA and Twining
Coordinating bodies extends only limited and focused trainings
Inclusion of HRD Offices in permanent training of civil servants
Way to avoid overlapping or complicated procedures, use of the same results for a number of govremntal institutions