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Page 1: EXECUTION OF IFAD PROJECTS:

UNOPS-DAKAR Regional Office for West and Central Africa

EXECUTION OF IFAD EXECUTION OF IFAD PROJECTS:PROJECTS:

Constraints and proposed solutionsConstraints and proposed solutions

Page 2: EXECUTION OF IFAD PROJECTS:

UNOPS-DAKAR Regional Office for West and Central Africa

IntroductionIntroduction

Non-exhaustive survey of constraints Non-exhaustive survey of constraints linked with the implementation of linked with the implementation of projects cofinanced by IFADprojects cofinanced by IFAD

These are particular points about which the cooperating These are particular points about which the cooperating institution is concernedinstitution is concerned

Attention: these constraints do not apply to all IFAD projectsAttention: these constraints do not apply to all IFAD projects..

Page 3: EXECUTION OF IFAD PROJECTS:

UNOPS-DAKAR Regional Office for West and Central Africa

1) The Problem :1) The Problem :

Projet start-up is still Projet start-up is still a difficult phasea difficult phase

Page 4: EXECUTION OF IFAD PROJECTS:

UNOPS-DAKAR Regional Office for West and Central Africa

Consequences :Consequences :

- increase in project cost directly linked to inflation

- reduced motivation of the target group involved in formulating the project

- project design that over time tends to become distanced from the reference situation analysed and taken into account during its formulation

- extra costs for the Government, which is responsible for the salaries of project coordination unit (PCU) staff between their appointment and the time the loan comes into force

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UNOPS-DAKAR Regional Office for West and Central Africa

Proposed solutions : Proposed solutions :

• sensitization of the Government on the need for rapid disbursement of counterpart funds (HIPC or other)

• Greater involvement of the supervisory ministry in the conditions to be fulfilled, especially through designation of a focal point prior to negotiations

• Funding a facilitator to support the condition-linked process (apart from start-up activities)

• Covering of the coordinator’s salary from the Special Operations Facility grant from the time of his/her selection/nomination, and the signing of other staff’s contracts after entry into force

• Greater synergy with other IFAD projects under way in the same country or other subregional projects (thanks to FIDAFRIQUE)

• Harmonisation of the loan agreement conditions

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UNOPS-DAKAR Regional Office for West and Central Africa

2) The problem :2) The problem :

Failure to fulfil the donor’s Failure to fulfil the donor’s mandate during project mandate during project

implementation implementation

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UNOPS-DAKAR Regional Office for West and Central Africa

Consequences :Consequences :

• Dispersal of funds to an expanded target group not corresponding to that of the donor

• Goal of poverty reduction barely achieved

• insufficient resources for the poorest population groups in comparison with other project activities

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UNOPS-DAKAR Regional Office for West and Central Africa

Proposed solutions :Proposed solutions :

• greater PCU responsibility for the goals to be achieved (accountability)

• better training for project partners

• strengthening of the supervisory role of the supervisory ministry and the steering committee

• PCUs: guarantors of IFAD’s mandate

• development of an “IFAD ethos”

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UNOPS-DAKAR Regional Office for West and Central Africa

3) The problem :3) The problem :

Some supervisory ministries Some supervisory ministries and/or steering committees are and/or steering committees are

insufficiently involved in insufficiently involved in project monitoring and project monitoring and

supervisionsupervision

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UNOPS-DAKAR Regional Office for West and Central Africa

The consequences :The consequences :

• divergence from the strategy agreed by the Government and IFAD

• best use not made of funds borrowed by the Government for poverty reduction

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UNOPS-DAKAR Regional Office for West and Central Africa

Proposed solutionsProposed solutions ::

• greater assumption of responsibility by external national-level supervisory structures

• strengthening of cooperating institutions’ supervisory mechanisms

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UNOPS-DAKAR Regional Office for West and Central Africa

4) The problem:4) The problem:

Withdrawal applications sent Withdrawal applications sent to the cooperating institution to the cooperating institution are not presented correctlyare not presented correctly

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UNOPS-DAKAR Regional Office for West and Central Africa

Consequences Consequences : : many delays in the many delays in the disbursement of disbursement of

fundsfunds Analysis of withdrawal applications reveals the following main Analysis of withdrawal applications reveals the following main problems:problems: : :

• errors in the numbering of withdrawal applications

• miscalculations of category totals

• errors in the percentages applied to the sum spent – frequent

• specific conditions not complied with for certain categories (Annex 2, loan agreement)

• use of wrong SS1 or SS2 forms

• miscalculations in the handling of civil engineering contracts (invoice, recovery of start-up advance, collateral/guarantees, etc.)

• documents missing (supporting documents for SS1 , delivery slip, proof of payment)  – frequent

• Lack of description of expenses for ss2 -frequent

• failure to take account of amendments to loan agreement (if any )

• errors in the allocation of expenditure to different categories

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UNOPS-DAKAR Regional Office for West and Central Africa

Proposed solutions :Proposed solutions :

• better training of administration and finance officers

• control of withdrawal applications by the PCU coordinator

• increased training of national control structures through which withdrawal applications are passed (Autonomous Sinking-Fund Office, Ministry of Finance)

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UNOPS-DAKAR Regional Office for West and Central Africa

5) The problem:5) The problem:

Annual audit reports not Annual audit reports not submitted on time (6 months submitted on time (6 months after the end of the financial after the end of the financial

year)year)

UNOPS-Dakar: 2 projects out UNOPS-Dakar: 2 projects out of 17 in 2004of 17 in 2004

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UNOPS-DAKAR Regional Office for West and Central Africa

6) The problem:6) The problem:

Monitoring and evaluation Monitoring and evaluation (M&E) do not provide enough (M&E) do not provide enough

knowledge of the project’s knowledge of the project’s socio-economic impactsocio-economic impact

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UNOPS-DAKAR Regional Office for West and Central Africa

Proposed solutions :Proposed solutions :

• strengthening of the analytical skills of all PCU staff

• involvement of all actors in the monitoring and

evaluation task

• application of monitoring and evaluation tools developed by IFAD (RIMS, etc.)

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UNOPS-DAKAR Regional Office for West and Central Africa

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION