Austrian Development Cooperation

1. Austrian Development Agency (ADA)Walk the Talk? Implementing Division of Labour - Austrian Experience

2. Austrian Development Cooperation Austrian Development Agency (ADA) The operational unit of the Austrian Development Cooperation Ministry for European and International Affairs(FMEIA) Department for Development Cooperation and Cooperation with Eastern Europe

3. FMEIA Overall-coordination of the Austrian public development cooperation Formulation of development cooperation strategies and policies Policy-dialogue in Austria and at international level ADA Implementing Austrian development cooperation strategies and programmes Management of bilateral development cooperation budget Policy dialogue in Austria and partner-countries Advising the FMEIA and other Austrian public institutions Acquisition of external funding Austrian Development Cooperation

4. Geographic Focuses and Local Offices

5. Sector priorities The Austrian Development Cooperation offers and implementsspecial know-how in following priority areas: • Water & sanitation • Rural development • Energy • Privat sector development • Education & science • Governance (incl. peacebuilding and conflict prevention, human rights)

6. Cross-sectoral themes • Poverty reduction • Environment • Gender • Public finance and democratisation • Governance (incl. peacebuilding and conflict prevention, human rights)

7. Official Development Assistance (ODA) 2010* * According to the preliminary figures on 2011 aid flows reported to OECD/DAC, Austria spent 796.08 million euros on Official Development Assistance (ODA), which corresponds to 0.27% of the gross national income (GNI)The final figures for 2011 will not be available until about the end of August 2012.

8. Official Development Assistance (ODA) 2010* * According to the preliminary figures on 2011 aid flows reported to OECD/DAC, Austria spent 796.08 million euros on Official Development Assistance (ODA), which corresponds to 0.27% of the gross national income (GNI)The final figures for 2011 will not be available until about the end of August 2012.

9. Partnership for effective development cooperation, Busan, South Korea, 2011 • From aid effectiveness to cooperation for effective development • The Global Partnership includes new actors based on shared principles and common goals but differential commitments • Cooperation with the private sector • Promote South-South cooperation • enhanced efforts to strengthen partner country (democratic) ownership • Partner-led coordination of cooperation (including division of labour, joint programming) • Improved management for results at programme and project level • Accountability by strengthening parliaments, local government and civil society • Enhanced transparency • Accelerated efforts for gender equality and empowerment of women • Sustainable development in fragile conditions

10. Operationalizing Aid Effectiveness • Strengthening capacities of development partners according to their needs • 70% of all new ADA contracts (2010) include a CD component • Train4Dev initiative • Intensified use of development countries’ systems: increasingly used in Burkina Faso, Ethiopia, Nicaragua, Moldova and Western Balkans • joint PFM trainings in Albania and Burkina Faso • Alignment of ADC’s programming procedures with processes in partner countries to improvepredictability • Joint programming with EU member states locally (where possible) and EU Agenda for Change

11. Operationalizing Aid Effectiveness • Mutual accountability: adequate participation in monitoring and review mechanisms and timely information of partner countries on scheduled flow of resources • Joint donor analyses as public expenditure and financial accountability (PEFA) or joint procurement assessment reports • All projects in Bhutan in water and sanitation are implemented via national execution systems; SPSP in Uganda and Mozambique via use of partner - systems • Multi year country allocations are part of multi annual cooperation agreements • Optimising the mix of financing modalities and stepping up programme based cooperaton: avoiding programme fragmentation

12. Operationalizing Aid Effectiveness • Upgrading domestic accountability in partner countries by strengthening parliaments, media, audit courts and civil society organisations • Improving management for results • Geographical and sectoral concentration in keeping with the EUCode of Conduct on Complementarity and Division of Labour (two, maximum three, sectors per partner country, reduction to ten priority countries by 2013) • Delegated cooperation with other donors • Participation in initiatives of various donors: EFSE, PIDG, EU Infrastructure Trust Fund • Participation in and support of operational networks and fora: EUEI, EUWI, Practitioners’ Network, NGO cooperation

13. Operationalizing Aid Effectiveness • structured dialogue with civil society on possible complementarity and synergies for achieving the common aim of more effective development cooperation • Gaining public and political support for development cooperation through greater and more targeted information and communication • Emphasising political commitments to provide funds for development cooperation • Raising the programmable budget for bilateral development cooperation in Austria • Improving development-policy coherence overall (applying to all ODA payments)

14. Managing Diversity • Managing Diversitiy and Reducing Fragmentation • Private Sector Development • Climate Change • Cooperation in fragile conditions

15. Delegated Cooperation: Indirect Centralized Management • EU – ADA • Based on the • alignment of ADC’s programming procedures with processes in partner countries and • the goal to increase aid efficiency and the leverage of development cooperation through using synergies between donors and development partners: • ADA intends to contribute to the practical implemenation of DoL through an active involvement into delegated cooperations

16. Delegated Cooperations: ADA to a Partner • Implementation of the Energy and Environment Partnership Programme in Southern and East Africa 2010 – 2012: cofunded by DIFID : ADA delegates to Finland • Transfer Agreement with EC to assist the Palestinian Authority in its reform and development agenda: ADA supports an EU fund since 2008 with an overall amount of 4 Mio. € (so far): PEGASE mechanism: financial support to vulnerable families in the West Bank and Gaza: social protection mechanism

17. EU ADA ICM: Current Commitments • In implementation • Albania: Project Preparation Facility • EU contribution: 1.5 Mio.€ • Albania: Support and Expansion of the Treasury System • EU contribution: 1.5 Mio.€+ MoFinance of Albania • Central Amercia: Energy and Environment Partnership with Central America (EEP): EU contribution 1.5 Mio.€, ADC: 3.6 Mio.€, cofunded by Finland (MFA): 13 Mio.€ • Rehabilitation of the water supply system of Nisporeni, Republic of Moldova • EU contribution: 5 Mio.€, overall ca. 11.3 Mio.€, ADC: 3.5 Mio.€ and SDC: 800.000 € + Government of Moldova

18. EU ADA ICM: Current Commitments • In preparation: Delegation Agreement already signed • Technical Assistance to the Water Supply and Sanitation Sector in Albania • EU contribution: 2. Mio.€ planned, overall: 4.2 (ADC: 2.2 Mio.€) • Socio-economic development of the Danube Region in Serbia • EU contribution: 18.5 Mio.€, overall: 19.5 Mio.€

19. Experience: Water supply: Moldova • On the base of the Moldovan strategy for water and sanitation ADA (as Lead Donor) joins hands with EU and SDC in the Republic of Moldova for the implementation of a comprehensive water supply and sanitation programme in southwest Moldova/region of Nisporeni for appr. 23.000 people • EU contributes 5 Mio.€ to this programme via ADA: Delegated Cooperation • Important: • Clear and focused concentration on sectors: Moldova: WSS and VET • Active role in the selected sectors: WSS sector dialogue in Moldova (sector coordination council) and ADA as Lead Donor in a multi donor project • Active Donor in VET

20. Experience: ADA cooperation in Uganda • Uganda: Concentration on Water/Sanitation and Justice • Concentration in the sector: Lead in Water and Sanitation sector in 2010/11 and an active donor in justice sector • Use of Sector Wide Approaches, Programme based aid and joint funds • Joint Assessment Framework to measure development progress

21. Challenges with ICM - Implementation • all actors (implementing agencies, EU-delegations, partner country institutions) are still in a learning process • knowledge in EU Delegations of systems and procedures related to indirect centralized management and preparedness to apply the modality • coordination/consultation between the responsible EU Delegation and the Commission’s headquarters • In general, the terms and conditions set out in the Delegation Agreement do not favor delegated cooperation in the context of larger / joint programs or basket funds

22. Concluding • ADA: in principle positive experience with delegated cooperation • Reducing fragmentation is not only a technical matter but a profoundly political task, that requires political commitment! • Even if commitment exists - implementation remains a challenge • Being a relatively small agency makes it easier to join forces with others (examples in Central America, Moldova, Albania) • Permanent dialogue between policy and implementing level is crucial