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Global Fund Performance Incentive Scheme for Public Service: Feedback of DPG Health and AIDS

Global Fund Performance Incentive Scheme for Public Service: Feedback of DPG Health and AIDS. On Behalf of DPG Health and AIDS Danida , DPG H Troika Chair GIZ, DPG H Troika/TNCM Member June 4, 2013. Global Fund – TZ National Coordinating Mechanism.

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Global Fund Performance Incentive Scheme for Public Service: Feedback of DPG Health and AIDS

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  1. Global Fund Performance Incentive Scheme for Public Service:Feedback of DPG Health and AIDS On Behalf of DPG Health and AIDS Danida, DPG H Troika Chair GIZ, DPG H Troika/TNCM Member June 4, 2013

  2. Global Fund – TZ National Coordinating Mechanism Global Fund to Fight AIDS, TB and Malaria (GFATM) is the sixth largest donor to Tanzania (AMP, FY11/12) • USD 1.2 billion since 2002; currently 8 grants with MoF, MoHSW, PSI & AMREF • Top ups for grant managers and key staff included in all grants until 2012 • Removal of top ups from HIV grant (Round 8) after sharing of DP Allowance Guideline in 2012 • Proposal and budget were already endorsed by Tanzania National Coordinating Mechanism (TNCM), coordinating and decision making structure at national level where DPs take part (DPG H, DPG A, PEPFAR, UN) • Development of performance incentive scheme as condition precedent to be fulfilled for grant implementation to start • Support of PEPFAR to complete the condition precedent • Incentive scheme endorsed by Local Fund Agent and submitted to GFATM • DPG-Health raised its concerns about the potential conflict with Agreement on Allowances (May 2013) with GFATM and TNCM

  3. Proposed GF Performance Incentive Scheme • 3-year (FY 13/14 – FY 15/16) performance incentives to key civil servants responsible for management of GFATM HIV grant (Round 8) • Expressed Rationale: Transition away from “top-ups” (as previously provided) in compliance with GoT/DP agreement; desire for better grant performance. • Max. US$ 500,000 to be distributed annually on the basis of performance as evaluated by the LFA through the PU/DR • Distribution of payments according to performance in: Programmatic progress 35%, grant management 15%, PSM 20%, Timeliness 10%, Overall evaluation and grant rating 20% • Distribution among recipients: MoF (11.1%), TACAIDS (13.4%), MoHSW-PMU (11.1%), PMO-RALG-PMU (7.1%), NACP (35.2%), NIMR (8.9%), MSD (1.13%) • Recipients/ implementers selected 140 staff (incl. very senior) • Monitoring of performance conducted by the LFA as per the performance framework and the official PU/DR evaluation guidelines of the Global Fund • Ownership: Concerned parties discussed the framework and completed the eligibility sections internally  • Expansion to other GFATM grants in Tanzania that are still using top-ups

  4. DPG Health Concerns • Violates key underlying principles of DPG and GoT agreement • Process of stakeholder input and discussion, as well as reflection on previous and existing initiatives has been cursory • Previous experience of SASE not considered; limited evaluation of previous GFATM top-ups; little coordination with the many performance incentives currently being designed in the health sector or broader PO-PSM efforts. • Potential conflict of interest in process of development • Many of those to benefit are negotiating • Dangerous precedent of isolated DP action in advancement of narrow institutional objectives • Key staff incentivized to perform in terms of GFATM objectives have broader responsibilities across GoT • Does exit strategy exist? • Expansion to other GFATM grants in Tanzania

  5. Expression of DPG Health Concern Verbally: • DPG Health/DPG Aids meeting with GFATM mission in September 2012 and March 2013 • Some DPs have raised with their GFATM Board constituency the importance to analyze evidence and lessons learned of similar approaches in other countries Written: • DPG Health participation at TNCM meeting 27 May 2013; presentation of joint DPG H letter DPG Aids not supportive of a joint statement; Participants: PS PMO, TACAIDS, NACP, NMCP, MOF, MoHSW PMU, PEPFAR, DPG-H and DPG-A, PSI, AMREF and non-gov rep.; No clear endorsement, final decision to be taken by PO-PSM as authority for remuneration policy Formal Presentation: • DPG Main, May 2013

  6. DPG-AIDS Views • Principle : DPG-Main cannotoveruleTNCM’sdecision • If pilot endorsed by PO-PSM Commission on remuneration: • DPs to propose TNCM to do a formalevaluationof the pilot in 2015 to informsubsequentrenewals • TNCM secretariatshouldwork in collaboration with TWG Health Care Financingin the development of the ToRs and the conduct of the evaluation

  7. Way Forward and Our Ask Today • DPG Main to clarify policy and definitions related to top-ups and allowances through exchange of letters with GoT • DPG Main to join DPG Health letter to ensure Performance Incentive Scheme is aligned with comprehensive reform of PO-PSM remuneration policy • Addressed to GoT and Global Fund Secretariat and/or Board • DPG Main members – particularly DPs who are TNCM members and were active in development of the Allowance Guidelines – to support removal of performance incentive scheme from GFATM grant [proposal of DPG-AIDS is to go ahead with the pilot, if endorsed by PO-PSM, but ensure impact evaluation is done]

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