FCL roles and efforts to support IFAD project supervision and

implementation

Irene Li

FCL, IFAD

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I. A significant portion of IFAD’s loan and grant portfolios is in the Eastern and Southern Africa Region

PF Loans

. 58 (out of IFAD total 246) effective loans with SDR 639.8 million - 23% value of IFAD effective loans.

• 3 new Loans approved for SDR 34 million - 22% value of IFAD approved Loans in 2008.

ANGOLA

SWAZILANDERITREA

LESOTHO

MALAWI

ZAMBIA

BURUNDI

MAURITIUS

RWANDA

MADAGASCAR

MOZAMBIQUEKENYA

TANZANIA

UGANDA

ETHIOPIA

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PF Grants

• 92 effective grants (543 IFAD) for USD 130.3 million. • In 2008 10 Grants have been approve (24% of IFAD Grants

Approved in 2008)

Funding Type No of GrantsTECHNICAL ASSISTANCE GRANT 42LOAN COMPONENT GRANT 8DEBT SUSTAINABILITY FUND GRANT 6BSF REGULAR GRANT 5IRISH SUPPLEMENTARY FUND GRANT 5SPECIAL OPERATIONAL FACILITY GRANT 5BSF EURO GRANT 4NORWEGIAN SUPPLEMENTARY FUND GRANT 4NGO/ECP GRANT 3SWISS SUPPLEMENTARY FUND GRANT 3OTHERS 7

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Loans and Grants with Expired Closing Dates

• Loans:

– 13 loans with expired closing dates.

• Grants (A,G,E):

– 44 (I,C, B, I)- with expired closing dates

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HIPC Grants

• 10 HIPC Grants out of IFAD Approved total 31, 53% in value:

HIPC Approved Undisbursed AmountUGANDA 12,773,851 702,823MOZAMBIQUE 10,672,180 2,551,617TANZANIA 11,945,660 3,994,104SENEGAL 2,331,354 0MADAGASCAR 6,445,794 2,669,334MALAWI 14,136,720 12,305,451RWANDA 13,263,229 10,615,055ZAMBIA 13,729,323 9,223,882ETHIOPIA 18,630,000 11,405,746BURUNDI 11,700,000 11,700,000Total 115,628,111 65,168,013

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II. Improve efficiency of disbursements of

loans and grants

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The Role of the FC Loans Section

• Reviewing and Authorizing loan and grant disbursements.

• Providing financial guidance and assistance• Assisting to resolve outstanding disbursement

issues during project implementation.• Managing/Monitoring Loan repayments of funds • Following up arrears in repayment of principal

and interest.

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Disbursements

• PF Loan disbursements to end Q3 2008 total 40 million SDR which is 20% of all loan disbursements IFAD (SDR 200 million)

• PF Grant disbursements to end Q3 2008 total 7.75 million USD which is 28% of all IFAD grant disbursements

Amounts Disbursed to end Q3 2008

IFAD

IFAD

PF

PF

0 50 100 150 200 250

Loans (MillionSDR)

Grants (MillionUSD)

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Unique Characters of PF Disbursements

• Numbers of total disbursement and numbers of transaction of each loan

IFAD/PF Year-2006 Year-2007 Year-2008 est.

IFAD 2017 2352 2220PF 742 667 670

IFAD 8.2 8.6 9.1PF 13.23 11.73 11.78

Number of Disbursement-Loans and Grants

Loan Disbursement Rate per Loan

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Disbursements

FC Average Processing Time (days) per Payment

G-Grants, L-Loans

IFAD/PF Type Y 2006 Y 2007 Y 2008

IFAD G 37.52 27.61 14.38

PF G 36.25 19.71 8.23

IFAD L 14.04 7.98 8.10

PF L 12.75 6.47 12.34

         

Year 2008 Q1 Q2 Q3 Average Days

IFAD-G 23.68 8.75 11.96 14.38

PF-G 14.93 4.81 6.44 8.23

IFAD-L 11.22 8.14 5.59 8.10

PF-L 15.30 14.78 5.52 12.34

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III. Improve FCL working efficiency with support

from PF and PEA

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FCL major efforts to enhance disbursement efficiency

• Commencement of the Detailed Design Phase of the LGS Up-Grade

• Completion of the Loan Disbursement Handbook

• Debit advices to be sent via email directly to the projects

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Ways to improve efficiency of processing Payments

• Check that all supporting documentation provided before submitting

E. g. Replenishment requires Special Account Reconciliation, Bank Statements

• Complete Banking Instructions - with full Account Name and Number

• Deadline for claiming reimbursement expenditures

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