Aid in 2012/13: Roadmap for the LSSAI

1. Aid in 2012/13: Roadmap for the LSSAI Charles Chol Deputy Director of Aid Coordination

2. Presentation Outline • Aid outlook for 2012/13 • The continued relevance of LSSAI • Progress made to-date and next steps

3. Aid Outlook for 2012/13 Early indications suggest our development partners are preparing to continue their support for South Sudan throughout the difficult austerity period; $1.3bn in aid commitments have been reported in the 2012/13 period, a slight increase from 2011.

4. Aid Outlook for 2012/13 • 56% of 2012/13 aid allocations are going to infrastructure, health, natural resources and education sectors. • Fragmentation continues to be a problem in most sectors, and most projects continue to bypass Government systems.

5. The LSSAI under Austerity The LSSAI is about: • Channelling aid through government public finance management systems; • Having aid managed by government institutions; and • Aligning aid to sector policies and strategic plans For this to happen, it requires: • Strengthening government systems and institutions to deliver services using both government and donor funds • Developing and using harmonised approaches for service delivery Given the paramount importance of ensuring the efficient and rational use of the limited resources for improved local service delivery (especially under Austerity), the Government is continuing with the LSSAI agenda and hopes our partners will support us.

6. LSSAI Coordination Mechanisms: Progress • There are four Local Services Support Technical Working Groups: • Local Governance and Service Delivery (small scale infrastructure); • Sub-national PFM Technical Working Group • LSS Health Technical Working Group • LSS Education Technical Working Group • All the Technical Working Groups report to this LSS Task Force; • The LSS TWGs in health and education also report to their respective sector working groups; • The LSS Task Force report to this Quarterly Government Donor Forum.

7. LSSAI Coordination Mechanisms Quarterly Government Donor Forum Education SWG/LEG Health SWG LSS Task Force LSS Education TWG LGSD TWG Sub-national PFM TWG LSS Health TWG

8. Local Governance & Service Delivery Programme: Progress • The Local Governance Service Delivery TWG was established and is functional. It has met seven times to-date. • Analytical studies have been commissioned: • NGO and Social Assessment; • Institutional and fiscal assessment of LGs and an assessment of intergovernmental systems • Two design missions have been accomplished • Nov/Dec 2011 and March 2012; • The Project Concept Note was approved by the World Bank and RSS.

9. Local Governance & Service Delivery Programme: Next Steps • A consultant is being contracted to design the LGSD Operations Manual • A consultant was commissioned to map, review and analyse UN and DP support for local governance and public sector capacity building • A study visit to Uganda will be conducted between July 2nd and 6th, 2012. • The World Bank will conduct a pre-appraisal mission between July 10th and 25th, 2012. During the mission: • The findings of the analytical studies will be presented; • A round table on service delivery frameworks will be held; and • The design features will be fine tuned • There is a planned consultation with stakeholders at the national, state and county levels.

10. Sub-national PFM: Progress • Terms of reference to guide the operation of the sub-national PFM TWG were agreed; • A consultancy firm has been selected to develop the LG PFM Manual. • A process of developing and discussing benchmarks that have to be attained for the development partners to use government systems has been initiated.

11. Sub-national PFM: Next Steps • Development of detailed benchmarks document setting out milestones and success criteria; • Overseeing LG PFM consultancy, starting with review of inception report. • Clarify the different donor requirements that need to be met for donor funds to use government systems (e.g. fiduciary assessments), including any actions in addition to meeting benchmarks. • Review existing donor support to LG PFM; • Initial assessment of support needed to achieve benchmarks, including the programming modalities and funding available for this. • Start work with Audit Chamber on arrangements and funding for approving audit firms to carry out annual audits of Local Governments.

12. LSSAI in Health: Progress • Two meetings of the TWG have been held (March and June 2012) • The membership of the TWG was discussed and agreed • The TWG has agreed on the actions/next steps

13. LSSAI in Health: Next Steps • Finalise ToR and work plan for the health TWG • Broadening the understanding of the LSSAI among MoH staff; briefing of senior management on LSSAI progress

14. LSSAI in Education: Progress • The first meeting of the education LSS TWG was held on Monday, June 18 • The participants agreed on composition, work modalities and a plan of work for the LSS TWG

15. LSSAI in Education: Next Steps • Contribute to ongoing donor project design in education: The DFID Girls Education Programme is currently under design and offers an opportunity for the TWG to feed in. • Participate in the design of the LGSD, to ensure that guidelines for school construction follow national policy. • Develop a service delivery framework which maps out roles and responsibilities at each level of government and funding mechanisms for them. • Develop a framework for capitation grants that details how such grants will be allocated, disbursed and monitored.

16. Thank you