DAD Rwanda, Country Ownership and the Donor Performance Assessment Framework

1. DAD Rwanda, Country Ownership and the Donor Performance Assessment Framework Nairobi, KENYA DAD Community of Practice January , 2013 Marie-Ange INGABIRE External Finance Unit (EFU) Ministry of Finance and Economic Planning RWANDA

2. Outline • Why DAD for Rwanda and its Benefits ? • Process of developing DAD for Rwanda • DAD in the Aid Coordination in Rwanda • Donor Performance Assessment Framework (DPAF) • Division of Labor (DOL ) • Official Development Assistance Report (ODA) • Strengthening DAD • Next steps (pipeline) • Challenges and lessons learnt

3. Pre-requisites for a DAD • Existence of an aid coordination architecture that brings together the Government and Development Partners to ensure effective support to national development processes. • A government policy on the management of aid • and the Rwanda Aid Policy that clearly sets out the government’s preferences in terms of the type of aid it wishes to attract, and the processes to be followed in the management of external assistance.

4. Defining the DAD • Both Government and Development Partners need buy in and agree on the following: • Agree on the necessity of the system • Have a common understanding of how the system should work • What type of inputs are needed • Which outputs are expected and how accurate they have to be (quality indicators) • Who are the beneficiaries

5. Why DAD for Rwanda? • Launched in March 2006, DAD Rwanda was developed with the aim to achieve the following main objectives: • Enable the GoR to drive the processes of aid management by: • Establishing a single repository of all ODA in Rwanda and replace old, inefficient systems. • Enable the GoR to do “gaps analyses”, facilitate planning process and resource mobilisation. • Enable the GoRto plan, monitor and account for the use of resources in an effective manner • Institutionalise transparency & accountability between GoR & DPs. • SUPPORT THE IMPLEMENTATION OF THE RWANDA AID POLICY.

6. Benefits Of DAD • To track the flow of development assistance to Rwanda. To Share information and reduce transaction costs in the collection of information on ODA. • To enhancetransparency and accountability of the development assistance to Rwanda • To allow the Government to coordinate the development efforts, ownership of the development process • To ensurethat aid flows in accordance with government priorities to where the needs are greatest. • To support and improve the formulation of national planning and budget

7. Development Assistance Database – centralizing Aid information

8. DAD in the Aid Coordination in Rwanda

9. Donor Performance Assessment Framework (DPAF) • A Joint tool for monitoring of donor progress and performance against national and international commitments (Paris Declarations, Accra Agenda for Action, Busan etc.) on the quality of development assistance. • Need for mutual reviews of performance against commitments on aid effectiveness at the country level. • DPAF’s 23 Indicators drawn from the Paris Declaration Indicators on quality of aid– and Indicators agreed on at country level

10. Example DPAF: Use of national Systems and Institutions for strengthened ownership, sustainability and reduced transaction costs

11. Example DPAF: Budget support Indicators

12. Donor Performance Assessment Framework (DPAF) - Process • DPAF is undertaken on the basis of data entry in the Development Assistance Database (DAD). DAD incorporates the DPAF indicators. • DPAF exercise commenced in mid-July with a training session on the DPAF in the DAD. Data entry to be completed by mid-August/end August. • Verification of data undertaken by MINECOFIN staff. • Bilateral discussions with DPs held to seek clarification and ensuring appropriate data filling for the DPAF exercise. • DPAF preliminary results require further verification in ensuring correctness of the DPAF report and analysis and will form a basis for DPCG dialogue

13. DAD Rwanda and the DoL • Donor Practices of intervening in a wide range of sectors • Results into high transaction costs and administrative burdens for recipients • Makes coordination difficult • Compromises aid effectiveness • PD and AAA urge recipients and DPs to agree on a division of labor framework to enhance aid effectiveness

14. Rationale of DoL in Rwanda Donor Preferences tended to prevail when determining sectors of intervention Risk of under-investment in productive sectorsthreatening to undermineImplementation of the EDPRS Overcrowding of somesectorsleading to increased transaction costs

15. DAD Rwanda and the DoL • Division of Labour in Rwanda was first discussed in the Development Partners Retreat (DPR) in February 2010 presented and endorsed at the DPCG meeting in July 2010 • The DoL principles called for more appropriate distribution of DPs’ support across 3 sectors in line with the national priorities. • The effective implementation of the DoL requires analysis of sector financing, nature and modality of DP engagement in any given sector as recorded in DAD. • Currently the DAD sector classification is aligned to the DoL sector classification drawn from the Economic Development and Poverty Reduction Strategy II (EDPRSII)

16. Donor Interventions beforeDoLproposal in 2010

17. Division of Labor (DoL) for EDPRS2 Sectors : Aug 2013

18. Example DPAF: DoL Implementation Indicators

19. DAD Rwanda and the Annually ODA Report • The ODA Report is based on the data on ODA captured in the Development Assistance Database (DAD). • Quality of data used in this report largely depends on the accuracy and relevance of information reported by DPs in the DAD • In order to ensure quality of data provided in the DAD, the Government undertakes verification processes at relevant level, mostly through the DPAF process • Data Submitted for the Global Monitoring Framework

20. Current DAD Reporting Procedure

21. Forum for Accountability and Dialogue • Development Partners Coordination Group • To provide a forum for regular dialogue on co-ordination, harmonisation and alignment, to monitor and assist implementation of the EDPRS and to review progress made by development partners against their Paris Declaration commitments. • Development Partners Meeting (DPM) • Biennial high-level forum on development cooperation, seeking at political level engagement. • Development Partners Retreat (DPR) • Annual senior-level 2-days meeting to review progress with relevant stakeholders • Sector Working Groups • Monitor relevant EDPRS progress and sector-level DPAF

22. DAD in Budget and Planning -Strengthening DAD (in Testing phase ) • Ensure DAD as the GoR’s repository of information; • Ensure a reduction of multiple data requests from GoR to DPs; • Ensure DAD capture relevant and usable information on external aid to support national planning, budgeting, execution and monitoring process; • Enhance transparency and accountability (ODA Report) • Establish linkages and complementarities with SmartFMIS (Finance Management Integration System for Budgeting, planning and Accounting for Rwanda Domestically and External Revenues)

23. Integration of DAD with SmartFMIS • Integration of DAD with Smart FMIS (currently in testing phase ) • DAD integrating GoR’s Chart of Accounts; • DAD planning/commitment information feeding into budget module; • DAD disbursement information feeding into revenue module; • DAD direct payment information feeding into expenditure module;

24. Integration of DAD with SmartFMIS GoR’s Smart FMIS Development Assistance Database (DAD) 3 year projections Budget Module MTEF Module Project Module: Integration of GoR’s Chart of Account Revenue Module Actual Disbursement Direct Payment Cash Books Direct Execution GL

25. Next Steps (in pipeline) • Encourage the DPs to use of the delivered Off-line Module to ease the use of DAD • Continue to develop other useful modules that will increase usage of DAD (e.g. the NGO module was implemented in DAD but the Gor is looking at how the module will get Data from NGOs) • Produce periodic reports for publication to make use of peer pressure amongst donors. • Continued roll out of access to Line Ministries • As a pilot, Rwanda has agreed to explore the possibility of automatic data exchange between the IATI Information and DAD • Eventual relocation of DAD to be hosted internally

26. Challenges • Significant lack of data on ODA flows not being channelled through government, including data from NGOs (in Plan). • Not all DPs report through DAD (i.e. emerging donors) • Encouraging Donors to report ODA along the GoR fiscal year. • Some DPs do not report on time. • Contractual/Financial responsibilities of the DAD after phase-out of UNDP support

27. Lessons Learned • High-level of Government and Donors commitments • The Aid Policy that clearly sets the GoR’spreferences in terms od Aid effectiveness • Strong Government led process (e.g. DPAF, DPCG, Sector Working Groups) • Share experiences with other countries • Target setting – inclusive and consultative • Clear annualized individual provider targets for DPAF, drawn from PD targets • Elements of joint responsibilities at sectorial and national level

28. Thank you for your kind attention! Please visit our Development Assistance Database http://dad.synisys.com/dadrwanda And our Development Partners Website www.devpartners.gov.rw