1. Development Cooperation Framework DPG Main, 4 th March 2014 1

2. DCF vs Action Plan DCF Focus on Vision 2025 (/2020 for Znz) and LTPP Principles for engagement Principles for dialogue Principles for monitoring and accountability Identify main stakeholder groups DCF Action Plan Focus on medium-term plans/strategies Dialogue Structure Division of Labour Concrete actions Clearer directions/guidelines for stakeholder groups 2

3. DCF Objectives 1.Strengthen national ownership and government leadership in development cooperation; 2.Ensure effective coordination in development cooperation; 3.Managing resources for development results; 4.Strengthen both domestic and mutual accountability; 5.Graduate from the aid dependency through increasing trade and investments. 3

4. DCF Guiding Principles Ownership. Development Stakeholders should commit to fostering national ownership; support GoT addressing challenges; minimize use of conditionalities and parallel systems. Alignment: Continuously optimize alignment to national priorities; Use of Country systems: All development programmes strive towards utilizing URT country systems including Accounting, Procurement, Auditing and M & E systems; Information on Aid. Development Stakeholders should provide timely and disaggregated information on their assistance; Strengthening Accountability. All parties should promote government leadership in development cooperation management; 4

5. DCF Guiding Principles (Cont) Country Knowledge building. Both Government and Development Stakeholders should prioritize and effectively support country knowledge building while focusing on national development priority areas; Aid for Trade: URT recognizes the need for addressing supply side constraints for both domestic and export markets in order to stimulate investments; and Increase Domestic Revenues: URT will continue widening and managing domestic revenue collection in order to reduce aid dependency in medium and long term horizon. 5

6. Dialogue  Government leadership: must provide leadership at all levels of dialogue;  Inclusiveness: participation of all key stakeholders must be ensured with the view of enhancing ownership, transparency, accountability and sustainability;  Mutual trust and respect: Dialogue must be open, frank, and based on mutual trust and respect;  Minimize transaction costs: Dialogue must minimize transaction costs through simplification of processes and procedures;  Effective information sharing: Information must be shared among stakeholders in a transparent, timely, clear and accessible manner.  Inbuilt monitoring: joint mechanisms must be established to assess how the dialogue outputs feed into policy processes. 6

7. Financing Instruments and Arrangements Development Stakeholders will continue to support core priority areas of national development plans and strategies by providing support through – General Budget Support – Basket support – Direct Project Funds (DPF), – Public Private Partnership (PPP) / Aid for Trade – Continued support to NSAs Terminology focus is: –GoT will emphasize full integration of resources into budget and exchequer system –Resources are as much as possible integrated into national system/processes –Strive towards operating within GoT systems and structure –Use systems to the maximum extent possible 7

8. Procurement, Accounting, Audit, M&E Work towards providing dev. Assistance to URT that is free and fully available for utilization using national procurement systems; And support URT to address challenges/improvements. Increasingly use URT accounting and auditing procedures and systems; Regular reviews of joint (DCF + Action Plan) performance based on global indicators. 8

9. DP Roles and Responsibilities DPs will contribute resources to Development priorities that create sustainable development outcomes; Actively participate at various levels of the dialogue and advise the Government and other domestic stakeholders based on an agreed division of labour; facilitate domestic accountability by being transparent in the provision of their development assistance to all domestic stakeholders, by making increasing use of Government systems. DPs are mutually accountable with the Government to domestic stakeholders and to each other for their actions in fulfilling their shared commitments in development co- operation 9