1. MECHANISM OF PUTTING AID ON BUDGET MADAGASCAR I SAORA Z EFANIA ROMALAHY P ERMANENT S ECRETARY IN CHARGE OF A ID C OORDINATION O FFICE OF THE P RIME M INISTER IATI MEETINGS Paris-FRANCE, 4 and 5 July 2011

2. OUTLINE OF THE PRESENTATION (12 slides) Madagascar at a glance (1 slide) Context of Aid Management before 2008 Creation of an Aid Coordination Unit (STPCA) & its duties Setting up the National Database on ODA The new Overall Aid Coordination Mechanism Putting Aid on budget: Main blocking factors Actual activities to improve Aid on Budget Drafting a DECREE: Role and Content Way forward

3. MADAGASCAR AT A GLANCE 587 000 Square kilometers 20 Millions inhabitants (2010 estimates) 232 USD GNI per capita (2010) Between 2008-2010 Aid flows: USD 700 Millions USD 450 millions Aid on the budget: 65% of the total number of projects not found in the budget 38% in terms of effective disbursments

4. CONTEXT OF AID MANAGEMENT Before 2008 Several actors have a certain quantity of aid data: FINANCES : in-budget projects ( 50% of active projects) TREASURY : Disbursements on loans only MINISTRIES: Projects directly oriented by donors to sector DONORS: Projects directly implemented or through PIU Lack of data communication among these actors no place to find complete and reliable data on ODA Creation of a Coordination Unit in 2008: Permanent Secretariat for Aid Coordination (STPCA) Under the direct authority of the Prime Minister

5. DUTIES OF THE COORDINATION UNIT Centralizes all existing and upcoming data on aid inflows/uses Setting up a mechanism to ensure data reliability, completeness and updates ; Ensures fluid circulation of data among actors One Stop Shop of data exchange between GVT Donors Duties limited on a coordination and strategic stage : Ministries remain responsible for their usual duties related to use of aid information Ministry of Finances still leads the budgeting process

6. SETTING UP THE NATIONAL AID DATABASE (Aid Management Platform) System purchased from Development Gateway with technical & financial support from UNDP & WB Web-based system/database: Online since the 1 st Quarter of 2009 36 donor agencies for more than 400 projects stored DAC and New Donors: Global Fund, GAVI, China, India… International NGOs (august 2011) 14 donors updating directly online their disbursement 22 donors still sending files to the Coordination Unit 60 persons trained and active on using AMP: 31 Government technicians (extracting data) 23 Donor Focal Points (entering & extracting data)

7. AID COORDINATION MECHANISM PRIME MINISTRY (AMP) Ministry Economy Planning Ministry Finances Budget Donors, UNDP Line Ministries Aligning aid to NDP Putting Aid on budget Input data Extract data Budgeting aid

8. PUTTING AID ON BUDGET: Blocking Factors Actual practices: - Ministries declare in a template projects to be put on budget - Ministries sign some projects documents out of MoF control: Foreign Affairs: for bilateral grants (Japan, China…) Economy and Planning: Multilateral donors (UN Agencies…) Line Ministries: for grants oriented directly to sector by donors Ministries declare less projects: More projects declared, more inflated the budget, less internal resources will be allocated to the Ministry Only projects which needs a national counterparts is declared (…)

9. HOW TO IMPROVE AID ON BUDGET: in Short Term Focal Point 1 Focal Point 2. Focal Point m AMP Ministry of Finance & Budget Line Ministries Ministry 1 Ministry 2 Ministry 3. Ministry n-1 Ministry n Submit list of projects to be put on the budget DECREE Donors, UNDP

10. DECREE ON AID BUDGETING PROCESS CLAUSES APPLICABLE IN SHORT TERM : Official and exclusive uses of AMP data by all actors Official right to Budgeting Focal Point (MoF) to match line ministries declarations and AMP data Obligation to provide a copy of all signed projects- documents to the Prime Ministry(Coordination Unit) LONG TERM CLAUSES: Only one signatory of project documents (MoF) or at least institute co-signature of MoF

11. WAY FORWARD Implementation of the decree Decree prepared with contributions from all stakeholders (donors and concerned institutions): Economy&Planning, Finances&Budget, Foreign Affairs Joint GVT-Donor Technical Validation Workshop before signature of the decree Endorsements of IATI: Expecting to reinforce continuation of donors commitments to provide data Expecting to gather broad idea from best practices exchanges between countries at international level

12. WAY FORWARD Focal Point 1 Focal Point 2. Focal Point m AMP Ministry of Finance & Budget Line Ministries Ministry 1 Ministry 2 Ministry 3. Ministry n-1 Ministry n Submit list of projects to be put on the budget DECREE Donors, UNDP IATI

13. THE DECREE Prepared and pre-validated by all ministerial stakeholders (technical level) Leaded by Prime Ministry To be signed by Prime Minister, Ministers of Finances, Economy and Foreign Affairs Four main aspects (chapters): Definitions and commitment to international principles Delimitation of duties of involved actors (Ministries…) in the process of putting aid on budget MoF should be the only one signatory for project-documents Official and exclusive uses of AMP data in the process

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