1. 2006 IPS Implementation 2007 Roadmap Dept. of Strategy & Donor Coordination December 21, 2006 3 rd Meeting of IPS Support Group Council of Ministers

2. 2 Purpose of Presentation to review IPS strengths and weaknesses in 2006 to propose process improvements for 2007 to present the 2007 key IPS Milestones for 2007 to identify SPC decision points during 2007

3. 3 2006 IPS Accomplishments establishment and active engagement of SPC and GMC establishment of Working Groups for Strategy, Budget and Integration (GSBI) in each ministry NSDI process launched; all planned sector and cross-cutting strategies now underway; on target for 2007 completion first time that a government-approved macroeconomic framework has informed the MTBP process first time that full MTBP methodology completed by all ministries first time that public investment was included meaningfully in MTBP process National Plan for Implementation of SAA approved Appointment of National IPA Coordinator (NIPAC) IPA priorities finalized within IPS framework IPS Support Group with donors established and met three times initial donor commitments (over $6 million) pledged in principle for 3-year IPS Trust Fund All core IPS components and supporting political and administrative structures are operational. Commitment to and understanding of IPS in ministries is increasing

4. 4 2006 IPS Gaps/Weaknesses MTBP process was 6 weeks late starting Macroeconomic assessment/forecast required additional work Very little analysis prepared for SPC regarding ministry MTBP ceilings Insufficient training and guidance provided to ministries Ministries did not have enough preparation time In some ministries, SBI WG was not actively engaged in NSDI/MTBP Most ministries submitted MTBP requests late (some very late) Linkage between MTBPs and budgets could have been stronger Public investment decisions remained ad hoc; new process not yet in place European integration was not well reflected in MTBP/budget process Initial IPA proposals developed outside IPS Donor coordination procedures not yet developed (DSDC function is not staffed) Level of automation remains very low These gaps are not surprising, given newness and scope of IPS, and can all be addressed in 2007

5. 5 2007 Process Improvements Begin process earlier (mid-January) Build more time into Planning Calendar for ministry planning Vigilantly monitor adherence to the Planning Calendar Provide more in-depth training to ministries at beginning of process Activate the IPS Trust Fund in early 2007 Provide better quality analysis to SPC to assist with setting priorities and ministry budget ceilings Build more time into the calendar for SPC decision making (key decisions can require more than 1 meeting) Focus effort on translating SAA commitments into MTBP/budget outputs Introduce new public investment and external assistance management procedures Operationalize IPSIS (for ministry performance reporting)

6. 6 MTBP 2007 was first time all ministries completed MTBP’s Public investment integrated for first time (needs improvement) Delays by central instructions + missed deadlines by ministries problematic MTBP linkage with budget was improved, but needs to be better 200720092008 more time for ministry preparation; better integration with EI/PI MTBP based closely on NSDI; full integration with EI and PI all ministries complete satisfactory full MTBPs improved linkages with budget process

7. 7 2007 MTBP/Budget Calendar MonthAction January Macroeconomic framework presented to SPC February Macroeconomic framework, MTBP Preparation Ceilings approved March Budget Preparation Instructions – Part A issued Programme Policy Review completed May Programme Expenditure & Investment Plans completed June Initial SPC review of MTBP, MTBP Expenditure ceilings July MTBP, MTBP Expenditure ceilings approved Budget Preparation Instructions Part B issued October SPC reviews unresolved issues re draft State Budget CoM approves draft State Budget November Submit draft State Budget to Parliament December Parliament approves State Budget

8. 8 Public Investment New process for identifying, approving and monitoring domestic and foreign-financed public investments to be approved in January 2007 New process introduced and tested in 2007, IT system designed Improved links with external assistance strategy in 2008 200720092008 design and approve new public investment process test new process; reflect in 2008-10 MTBP design, test and implemen t IT system for PI PI process fully implemented in MTBP; pipeline of projects established PI process informs EA Strategy new process reflected in MTBP

9. 9 2007 Public Investment Calendar MonthAction January New PIM system approved February Potential major public investments may be identified as part of ceiling- setting process; MTBP PI Ceilings approved March Public investment priorities reviewed as part of Ministry Programme Policy Review May Public investments included in Ministry Programme Expenditure and Investment Plan June Public investments reviewed as part of MTBP approval process July Public investment component in External Assistance Strategy October Approval of public investments in draft State Budget December Approval of public investments in State Budget by Parliament

10. 10 NSDI Interim NSDI Document to be approved in March 2007; Final in December 2007 All NSDI sector and cross-cutting strategies to be approved by October 2007 NSDI to influence MTBP in 2007; fully reflected in 2008 Emphasis then shifts to implementation and translating high-level goals/objectives into budgeted MTBP outputs 20092008 complete and approve all sector/ cross- cutting strategies approve Final NSDI Documen t reflect NSDI strategies in MTBP focus shifts to implementing strategies through MTBP approve Interim NSDI Document SPC prioritie s note 2007 MIP/ MMP SPC prioritie s note 2010 MIP/ MMP 2008 MIP/ MMP 2006 Annual Progres s Report 2007 Annual Progres s Report 2008 Annual Progres s Report 2007 2009 MIP/ MMP

11. 11 2007 NSDI Calendar MonthAction February DSDC submits Priorities Note to SPC (to assist discussion on ministry MTBP Preparation Ceilings) March SPC approves Interim NSDI Document Ministries complete Programme Policy Reviews April Agree on 2007 Ministry Integrated Plans and Ministry Monitoring Plans June DSDC assesses ministry MTBP plans for NSDI linkage July Ministries provide input for 2006 Annual Progress Report September 2006 NSDI Annual Progress Report published October All final Sector and Cross-Cutting Strategies submitted November Agree on 2008 Ministry Integrated Plans, Ministry Monitoring Plans December SPC approves Final NSDI Document * Note – individual deadlines assigned for completion of sector/cross-cutting strategies from Jan. to Oct.

12. 12 European Integration Priorities in 2007 on implementing SAA, establishing ministry EI structures; linking IPA more closely with Government priorities; securing TA; and making progress on decentralization Major effort to be initiated to translate SAA commitments into MTBP/budget 2007 20092008 convert SAA objectives into MTBP outputs complete gaps analysis for CFCU approve IPA 2007 Fiches IPA 2008 Process IPA 2009 Process IPA 2010 Process complete decentralization process ongoing SAA implementation

13. 13 2007 EI Calendar MonthAction February SPC approval of IPA 2007 Project Fiches Issue instructions for IPA 2008 MTBP instructions on including SAA commitments MIPD and Framework Agreement ratified by Commission March Appoint ministry sector programming officers (SPOs) April SPC approval of IPA 2008 projects July Approval of MTBP, with SAA commitments Annual report on SAA implementation to European Commission October Approval of draft state budget, reflecting SAA commitments SPC approval of IPA 2008 Project Fiches December Complete gap analysis on establishing CFCU

14. 14 External Assistance IPS Trust Fund operational by early 2007 (3 Years) Donor coordination process to be designed in 2007 External Assistance MIS (EAMIS) to be designed in 2007; linked to public investment IT system 200720092008 establish EA unit; design EA process; EA MIS implement IPS Trust Fund produce basic EA strategy produce first full EA strategy EAMIS operational produce second full EA Strategy

15. 15 2007 External Assistance Calendar MonthAction January IPS Trust Fund approved March Format for External Assistance Strategy approved (GMC) Indicators for External Assistance annual report approved (GMC) April Donor Roundtable May Begin collection of aid harmonization data First project approvals under IPS Trust Fund (earlier if feasible) September SPC approves external assistance strategy October National Conference on External Assistance

16. 16 2007 IPS Reporting Calendar MonthAction JanuaryMonthly report on SAA – yearend reporting to begin in 08 FebruaryMonthly report on SAA MarchMonthly report on SAA AprilMonthly report on SAA MayMonthly report on SAA JuneMonthly report on SAA JulyQuarterly report on all commitments (includes monthly SAA report) AugustMonthly report on SAA SeptemberMonthly report on SAA OctoberQuarterly report on all commitments (includes monthly SAA report) NovemberMonthly report on SAA DecemberMonthly report on SAA IPSIS operational

17. 17 IPS Ministry Workshop Calendar MonthAction January Integrated Planning Calendar IPS Trust Fund March 2008-10 MTBP, including translating SAA requirements into MTBP outputs New Public Investment Management procedures IPA 2008 instructions May IPSIS External Assistance Strategy July-Dec. Review standardized training with TIPA

18. 18 2007 SPC Decision Points MonthDecision late Jan. New Public Investment Management system; Macroeconomic Forecast early Feb. late Feb. Finalize Macroeconomic Forecast; review Strategic Priorities; MTBP Funding Choices (If needed) follow up issues; MTBP Preparation Ceilings; IPA 2007 Project Fiches early March late March Review Interim NSDI document; identify issues requiring follow up (If needed) follow up issues; approve Interim NSDI document April List of IPA 2008 projects late June Review draft MTBP; identify issues requiring follow up early July Follow up issues; approve draft MTBP, MTBP Expenditure Ceilings; quarterly IPS report Sept. Review draft external assistance strategy October Updated macro forecast; draft State Budget, quarterly IPS report; IPA 2008 Project Fiches early Dec. mid Dec Final NSDI Document; identify issues requiring follow up Review follow up issues; approve Final NSDI Document; 2008 Planning Calendar * note approval of sector/cross-cutting strategies to be spread across the above meetings

19. 19 Distributing the Calendar Suggest PM distributes to Ministers at Council of Ministers meeting or send it out along with a PM order in January All ministries will receive multiple copies To be placed on DSDC web page Updates/news on calendar to be provided on DSDC web page

20. 20 Monitoring the Calendar Quarterly performance reports to SPC will include an update on progress against the calendar