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Multi Donor Governance Trust Fund

Multi Donor Governance Trust Fund. AfDB Partnership Forum March 2010. Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE). Overview. ADB’s Governance’s Work and Mandate Multi Donor Governance Trust Fund Way Forward. Governance at the forefront.

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Multi Donor Governance Trust Fund

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  1. Multi Donor Governance Trust Fund AfDB Partnership Forum March 2010 Carlos Santiso Governance, Economic and Financial Reforms Department (OSGE)

  2. Overview ADB’s Governance’s Work and Mandate Multi Donor Governance Trust Fund Way Forward

  3. Governance at the forefront

  4. Crystallize the African Voice on Governance Promoting good financial governance in Africa The Bank focuses on economic and financial governance at three levels: • Tailored approaches (FS, LICs, MICs) to strengthen country systems for managing public resources • Strengthen governance in key sectors – particularly infrastructure energy, roads and transport, water and sanitation, natural resource management • Support institutions, initiatives and networks promoting regional standards and codes of good financial governance (ATAF, CABRI, AFROSAI,etc)

  5. An Active Portfolio Bank Group Lending Operations in Support of Governance (2002-2009) • 71 Operations covered 34 Regional Member Countries (RMCs) • 2008: UA 33.72 million of ISPs (2008) promoted economic and financial governance • 2009: 25 governance-related operations amounting to UA 2.16 billion

  6. OSGE Results/Outcomes Achievements in 2008 Achievements in 2009 • 19 operations (18 PBL, 1 ISP) • 21 financing instruments (ADB, ADF-L, ADF-G, FSF, AFCR) • UA 682 million • 25 operations (23 PBL, 2 ISP) • 20 financing instruments (ADB, ADF-L, ADF-G, FSF, AFCR) • UA 2 billion

  7. Multi Donor Governance Trust Fund- Nordic Trust Fund Building on experience and lessons learned: • Nordic Trust Fund on Governance (2002-2008) • 40+ initiatives, 5+ million USD • Main lessons (August 2008 evaluation): Enhance oversight and quality at entry, explore frontier areas, flexibility to respond, focus on demand side, extend to other donors • DFID Trust Fund (2008) • Strengthen Bank capacity and quality at entry; targeted support • Lessons from other Trust Funds • Coordination and oversight, strengthening Bank capacity, delegate authority for flexible response, support decentralization

  8. Multi Donor Governance Trust Fund • Overarching goal: Assist African countries to build capable and responsive states by strengthening transparency and accountability in the management of public resources • Specific objectives: • Becoming a catalyst for funding and a platform for knowledge where diverse development partners are encouraged to harmonize efforts • Bring innovative approaches in the area of economic and financial governance; • Serving as a vehicle to incorporate new development actors; • Enhancing and upgrading the Bank’s own capacity to deliver assistance

  9. Focal Areas • Anticorruption – • Promotion of integrity and credible oversight institutions and accountability systems; anti-bribery and business integrity • Financial governance – Revenue management (tax & non-tax), pro-poor • budgeting, gender budgeting, expenditure management, public procurement, debt management • Economic governance – • Public private partnerships, support to the investment climate and business environment • Sector governance – • Governance and corruption risk management, corporate social responsibility, high risk sectors (extractive industries, natural resources, infrastructure)

  10. Policy Setting Annual Review Approval of proposals above > 500 k Cross-Sectoral Agreement Strategic Alignment Oversight Committee Technical Committee Enhanced Transparency Improved Quality Outreach Screening Implementation Knowledge Management Coordinator and Secretariat Increased Visibility Strengthened Accountability Task Managers Improved Supervision Synergy with Bank work Better Client Orientation Sponsor Departs Focal Points Outreach Client Service First Screening A transparent, agile and accountable structure Review, Selection, approvals of Proposals < 500 k

  11. Multi Donor Governance Trust Fund- Nordic Trust Fund Next Steps: • The Multi Donor Governance Trust Fund- • The Government of Norway has pledged 6.4 million NOK (approx USD 1.113 million) and Switzerland has pledged CHF 3 million (approx. USD 2.99 million Bank capacity and quality at entry; targeted support • The Fund will be launched in April 2010

  12. Way Forward • OSGE the leading department- active portfolio- in the Bank has a need for more human resources • Secondments: 1 Germany, 1 United Kingdom • TA: 1 France, 1 Norway (untied) • Future needs • strengthening rather than shifting Bank capacity; through secondments, special leave, staff attachment, trust fund coordinator • In depth sector expertise (revenue, budgeting, auditing) • Gender and governance (mainstreaming) • Support to the APRM, procurement network • Decentralization of sector expertise (regional hubs and field offices)

  13. (title) • FEEDBACK? • QUESTIONS? • READY TO JOIN? • For more on our work: • www.afdb.org/governance • Contact: • Carlos Santiso (Manager, OSGE1) • C.Santiso@afdb.org

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