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

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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)

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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)

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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

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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.

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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)

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Rationale of Moving to AMP IIIncrease 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)

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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

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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.

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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

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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.

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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, 2009.

AMP Guidelines to be further embedded into the ODA management manual

To produce regular ODA quarterly and yearly progress report

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Preparing for the Launchmid Sept 2009

Complete data entry exercise before August 31, 2009

Feedback on Draft ODA reportPreparation and publishing of annual launch

ODA reportFinalize MDA/DP reporting scheduleFinalize guidance note

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Status of AMP Implementation - data entry - May 2009

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Comprehensive data1 Belgium2 UNICEF3 Kfw4 Canada5 Switzerland6 Sweden7 UNDP8 IFAD9 France10 Ireland11 EU

Partial data

1 Norway2 ADB3 WFP4 Japan5 Gtz

Incomplete records1 Global Fund2 Denmark3 DfID4 Netherlands5 USAID6 Finland

Pending entry1 IDA2 BADEA3 OPEC4 UNFPA5 NDF6 Korea7 China

Not recorded in AMP1 FAO2 ILO3 Italy4 Kuwait Fund5 Spain6 UNAID7 UNESCO8 UNHABITAT9 UNHCR10 UNIDO11 WHO

Thank you!

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