1. Country Presentation on the MDGs Process Ethiopian Team March 3,2006 Dar es Salaam

2. Important Milestones & Timelines  Ethiopia’s MDGs Investment Plan Issued in December 2005;  The MDGs-Based Five Year Plan(2005/06-2009/10) (PASDEP) has been already endorsed by the Cabinet in broad terms and is being refined and augmented based on inputs from Stakeholders including Government bodies;  Once refined the PASDEP will be approved by the Parliament before Mid April 2006;  Forward Looking M&E Action Plan(2004/05-2008/09) Jointly Developed by the WMU of MOFED and CSA through consultation with Stakeholders through support from the DAG;

3. Costing the MDGs A: The MDGs Period(2005/06-2014/15 ) In the Ethiopian case, MDGs Needs Assessment completed; Investment Plan formulated and issued (The MDGs Needs Assessment Synthesis Study Report); The total Cost Requirement projected at $US 100 Billion during the coming ten years; Of which the public component including ODA (which goes through the budget) is estimated at $US 76 Billion for the coming ten years; The Residual is estimated to be financed outside of the public domain (Households, Private Business, NGOs/CSOs, grass root community mobilization)

4. ----Costing B: The PASDEP  The PASDEP Program costs are MDGs-based as submitted by sect oral ministries in their respective five-year sect oral plans extracted from the respective sect oral needs assessment reports;  The aggregate total cost requirement as submitted from sect oral line ministries for pro-poor sectors for the coming five years stood at 342 Billion ETB(US$40 Billion) at the current Exchange rate(US$1=8.67 ETB);  This total pro-poor sect oral cost requirements have been aligned to the MEFF by taking in to consideration budgetary and non-budgetary costs, those to be covered outside of the public domain(HHs, NGOs/CSOs, public companies, Communities);  This brings down total pro-poor cost requirements for the five year period from 342 Billion ETB(US$40 Billion) to 183 Billion ETB($US 21Billion);  In other words from US$ 8 Billion per annum down to US$ 4.2 Billion per annum;

5. PASDEP Total Pro-Poor Sectoral Cost Requirements (Million ETB) Items2005/062006/072007/082008/092009/10Total Education8236937211612126211190253743 Health592575289405113591340447620 HIV/AIDS4975758510453131381723053381 Water & Sanitation3816417540161769181515590 Agriculture & RD6243642640894412458625755 Roads4656742779139028816137184 PSD2737 3293 15352 Telecom3481338625121931158512895 Power12292924565534460185634406 Gender &Dev’t161130120112118612 Population &Dev’t996661932401151313 Irrigation Dev’t2396420026472323160813173 Urban Dev’t4850 5834933430703 Total5986667725686417051975006341756

6. Financing the PASDEP: Aligning to the MEFF (The Base Case Scenario) (Million ETB) Items2005/062006/072007/082008/092009/10Total Domestic Revenue2246523731262663027834637137378 External Budget Grants 7221691978397911858738477 Total Revenue and Grants 2968630550341053818943224175855 Total Expenditure3616945783495295185856681240020 O/w: Poverty-oriented2590535390380203857345228183116 Overall Balance Including Grants -6483-15134-15423-13759-13577-64376 External (Net)2083237126333088353213707 Domestic (Net)4399465353866095697927512 Gap Financed64837024801991831051141220 Gap to be Financed0811074044576306623156

7. Major Challenges Availability of Financing (predictability, the need for multi-year disbursement plan, harmonization of procedures using existing government systems,etc); Further Strengthen Sectoral Monitoring systems (including their regional states’ counter parts); Improve coordination between state and non- state actors to Enhance information exchange and the complimentary roles the various sources of information;

8. Expectations of Support from UNCT /MP Capacity Building (Training) to further improve analytical framework (Modeling and simulation works) at the level of the central coordinating institution (MOFED); Immediate support to refine costing for some of the sectors with relatively week M&E systems( Agriculture and Rural Development, Urban Development, Power, Telecom, Irrigation)

9. Thank You