Identification and formulation of two 10 EDF programmes of budget support and support to the NAO for the EDF
The overall objective was to improve the relevance and efficiency of aid within the context of the 10 EDF National Indicative Programme (NIP) and the Poverty Reduction Strategy (PRS) for the budget support.
Two specific objectives were attained by the project :
1. Strengthen the capacity of the NAO for the EDF in aid programming, commitment, management and monitoring.
2. Support the implementation of thePRS et strengthen the Government capacity in public finance management by setting up a process of reform of public finances and macroeconomic stabilisation
A) Support in implementing the NIP
Institutional diagnostic: the consultants carried out an institutional analysis (i) of the current aid programmes, (ii) of the structures of support set up within the NAO in specific and, more in general, within the whole national administration, (iii) of the technical ministries involvement in the identification, programming and monitoring of past and future aid programmes and of their links with the NAO Support Unit (iv) of the implication of the services of the EU in its donor capacity. Organisational diagnostic:the following was analysed and assessed (i) the internal functioning of the NAO Support Unit, its responsibility, the coherence of its TOR in relation to its objectives, (ii) the procedures of control and technical and financial monitoring of projects under the supervision of the NAO Support Unit; (iii) the validation procedures for activities set up by the implementers together with the technical ministries involved in aid programmes; (iv) the procedures and functioning together with the EU services.
3.NAO needs assessment to allow the formulation and implementation of the 10 EDF programmes and to contribute to the process of programming for the 11 EDF. The consultants analysed: (i) aid programmes that will be active within 2009-2012 by sector of concentration (9 and 10 EDF financing); (ii) the institutional capacities of the technical ministries.
4.Proposals and recommendations. Various institutional options according to the diagnostics and needs assessments carried out were presented. These options took into account the need to create synergies among the various decision-makers in aid programming.The different administrative, technical and financial steps to be scheduled were highlighted. A work plan was presented together with a precise timetable, and organisational and functioning organigram to be set up for the 11 EDF and a description of the system.
B) Budget support programme
1. Macroeconomic analysis: macroeconomic constraints, poverty profile and evolution, situation of public finances, Government main objectifs on: macroeconomic and fiscal balance, poverty reduction and social context including budgetary aspects, public finance management, status of the economic reforms programme, sectors strategy, etc., contribution of the EU support; contribution of other donors providing budget support to CAR. 2. Public finances assessment. 3. Evaluation of the DSRP and its implementation. 4. Proposal for a set of indicators for the evaluation of variable disbursements: in line with the EU guidelines for budget support to fragile states