4. IMPLEMENTATION OF DEVELOPMENT COOPERATION ACTIVITIES

4.1 BASIC PRINCIPLES

50. In accordance with the principles for development cooperation set out in Chapter 2, section 2.1, the management arrangements for the implementation of development cooperation activities shall be based on the following basic principles:

1. The Royal Government ministries and agencies shall have the leadership and operational management responsibility to ensure national ownership of all development cooperation activities.

2. Management arrangements shall set out clearly the roles and responsibilities of implementing institutions and development partners in the operational management, reviews, reporting and accountability for achieving the expected results of the development cooperation activities.

3. Management arrangements of all development cooperation activities shall be clearly outlined in a program/project document. The arrangements shall describe as to how the proposed development cooperation activity shall be organized in the context of a sector, thematic or issue-based program, or as an intervention within jointly agreed sector strategies and priorities.

4. In all cases, an assessment of the capacity of the implementing ministry(ies) or agency(ies) to manage the implementation of the proposed development cooperation activity shall be carried out. If the assessment leads to a conclusion that the concerned institution(s) lack sufficient capacity then a plan of actions to fill the identified capacity gaps shall be prepared and included as a section within the program/project document. Also, the development partners funding the proposed activity shall allocate sufficient resources for filling the identified capacity gaps in the implementing institution(s) to carry out the management tasks.

5. The joint TWG mechanism shall be responsible for reviewing policies, strategies and setting priorities within their area and for ensuring coordination of development partners' support to the area, in particular where multiple development partners plan to provide support for a program or project.

6. The Royal government encourages a greater use of "delegated cooperation" based on principles embodied in the OECD/DAC's Good Practices papers on "Delegated Cooperation". Delegated cooperation occurs when one donor (a "lead donor") acts with authority on behalf of one or more other donors (the "delegating" donors or "silent partners")⁹.

7. In those exceptional cases where a development partner or a third party is to be tasked to carry out the management functions of a development cooperation activity, a plan of action shall be developed and implemented to gradually devolve management authority and responsibility to program managers within public sector agencies.

51. Improving aid effectiveness to maximize its benefits for the intended beneficiaries is a high priority of the Royal Government. To improve aid effectiveness, in the implementation of all development cooperation activities special emphasis shall be placed on managing for results by adopting a results-based management approach. The implementing ministries and agencies and development partners supporting a proposed development cooperation activity shall jointly identify obstacles or gaps that need to be tackled to achieve the intended development goals, and shall define realistic outcomes in the context of existing capacity of implementing institution(s) and available resources.

4.2 INSTITUTIONAL ARRANGEMENTS

52. The Royal Government recognizes different approaches and modalities for programming of development cooperation activities, such as sector-wide programs (SWAP), program-based approaches (PBA), cross-cutting thematic programs, a national program or stand alone projects within the framework of jointly agreed strategies and priorities for a sector. Institutional arrangements are the reference point for situating and anchoring a proposed development cooperation activity in the context of any of these programming modalities.

53. In the case of proposed development cooperation activities within a sector, thematic or issue-based program, the institutional arrangements shall ensure that:

• The management structure of the proposed development cooperation activity is situated in the context of the organizational structure of relevant sector program (e.g. Education, Health), thematic program (e.g. Decentralization and De-concentration), or an issue-based program (e.g. Land).

• The role and responsibilities of the lead ministry or agency, other concerned ministries and agencies, funding development partners, and stakeholders are clearly outlined with respect to coordination forums (e.g. steering committee, technical-level bodies to facilitate practical work, ad-hoc working groups, joint review missions and wider consultative forum), and calendar (e.g. program meetings, reports and reviews).

54. In the case of stand alone projects within the framework of jointly agreed strategies and priorities for a sector, the management arrangements shall be organized within the organizational structure of the implementing sector/line ministry or agency. Also, the Project Document for such an intervention shall include a section providing an explanation as to why the project approach is necessary or appropriate.

55. Implementing ministry(ies)/agency(ies) for a development cooperation activity shall be responsible for:

• Providing leadership to achieve the intended results of the development cooperation activity including advocacy and public relations.

• Planning and organizing activities that are necessary to produce planned results, and reviewing and approving draft work plans.

• Mobilizing inputs needed to produce the intended outputs, including personnel, goods and services.

• Facilitating coordination among participating ministries/agencies, development partners, and stakeholders to achieve the intended results.

• Supervising implementation of development cooperation activities as they are carried out.

• Financial management including accounting and financial reporting.

• Reporting on progress in implementation and results achieved.

• Ensuring that learning and adaptation processes are in place to identify needs for revision of the design or implementation strategy of the development cooperation activity.

56. In the case of sector, cross-cutting thematic and issue based programs and projects involving a number of ministries and agencies, an appropriate coordination mechanism shall be organized by the program/project management team to establish and maintain harmonious working relationships with cooperating ministries and agencies, and the funding development partners. Such a coordination mechanism shall be responsible for performing the following functions:

• Coordinate program activities and ensure that these are in consonance with key national priorities.

• Coordinate to ensure cooperation and participation of relevant line ministries and national institutions, and participating donors to achieve program/project intended results.

• Assume overall responsibility for attainment of development results of the program/project intervention.

• Review and approve annual work program and progress reports.

• Organize periodic joint (Government-donor) program/project reviews and other technical consultations.

• Facilitate and resolve inter-ministerial or cross-sector issues.

• Review lessons learned from the program/project, identify policy implications of lessons learnt and, where applicable, advocate the transformation of the identified policy implications into concrete Government (national) policies and supportive laws and regulations.

4.3 ROLES AND RESPONSIBILITIES OF PROGRAM OR PROJECT MANAGEMENT TEAM

57. The leadership role in managing a development cooperation activity shall be provided by the Program/Project Director and Program/Project Manager. Specifically, Program/Project Director on behalf of the implementing ministry(ies)/agency(ies) shall be responsible for the overall management of the development cooperation activity. He/she shall have supervisory responsibility for ensuring that the development cooperation activity is managed in an effective and accountable manner including mobilization of inputs (personnel, goods and services). He/she shall be appointed by the concerned sector/line ministry and may assume similar responsibilities for more than one development cooperation activity within the purview of his/her ministry or agency.

Program/Project Manager (Chief Technical Advisor/Senior Advisor/Program/Project Advisor/Coordinator) under the guidance of the Program/Project Director shall be responsible for ensuring that the planned development results of the Program/Project are achieved. He/she shall provide strategic policy advisory support to the implementing institution(s), provide technical guidance in planning and implementation of Program/Project activities, and manage the operational aspects of Program/Project implementation. Specifically, under the guidance of the Program/Project Director he/she shall be responsible for:

• providing strategic policy advisory support to the National Program/Project Director and the senior management of the implementing institution(s);

• planning Program/Project activities (e.g. work plan, budget preparation and revisions)

• managing the implementation of Program/Project activities (including recruitment, contracting, procurement of goods and services, and technical inputs mobilization and facilitation);

• ensuring that financial management, accounting, financial reporting and auditing functions are carried out according to agreed schedule; and

• monitoring, reporting and reviews of Program/Project activities, including performance assessment.

Program/Project Manager shall be appointed by the implementing ministry(ies)/agency(ies). In cases where the implementing ministry(ies)/agency(ies) lack qualified staff for the position, recruitment of a qualified professional from outside the Government can be undertaken in consultation with the funding development partner(s). The Program/Project Manager could be either a national or international expert.

4.4 MANAGING FOR DEVELOPMENT RESULTS

58. One key aspect and prerequisite for improving aid effectiveness is managing for results. Results-based management (RBM) is an approach that is aimed at achieving important changes in the way organizations operate and to improve performance in terms of results as the central orientation. RBM provides the management framework and tools for strategic planning, risk management, performance monitoring, and evaluation. Its main purposes are to improve organizational learning and to fulfil mutual accountability obligations of all stakeholders through performance indicators. Thus the design of all Development cooperation programs/projects shall include a section on results that are expected to be achieved and a logical framework to achieve them. The program/project design shall also include an analysis of the obstacles or gaps that shall be tackled to achieve the development goals of the proposed development cooperation intervention as well as define realistic expected outcomes in the context of existing capacity of the implementing ministries and agencies and available resources. The program/project management team and concerned stakeholders shall regularly assess progress of the implementation of planned program/project activities towards the achievement of desired outcomes, and make appropriate adjustments, when needed.

4.5 WORK PLANS AND BUDGET

59. The work plan and resource framework of a proposed development cooperation activity shall be formulated before the start of the development cooperation activity and shall be outlined in a program/project document. In keeping with the results framework of a cooperation program/project, the budget formulation process shall be linked to attainment of measurable outputs of the project. Budget revisions shall follow any revisions or amendments to the scope of activities of the intervention on which agreement has been reached between the implementing ministries and agencies and the contributing development partner(s).

60. In the case of sector programs, the Medium Term Expenditure Framework (MTEF) shall be used for formulating realistic sector financing needs based on realistic estimates of resources that are likely to be available from both domestic and external sources¹⁰. Updating of the MTEF shall be done annually on a rolling basis as an integral part of sector program planning. Sector line ministries jointly with the Ministry of Economy and Finance shall be responsible for preparing the MTEF. The Ministry of Economy and Finance shall coordinate the MTEF process and prepare annually a consolidated MTEF based on the MTEF for each sector line ministry and agency. The MEF shall ensure that the recurrent cost implications of all development programs are fully considered before signing on to proposals.

61. The annual budget of a development cooperation activity situated in the context of a sector-wide program shall be linked to the MTEF for the sector to ensure that the priority development expenditure requirements of the sector MTEF are adequately funded. A revision of an on-going program/project budget shall be in compliance with any revision/update of the MTEF for the relevant sector.

62. For sectors which do not yet have an MTEF, budget of a development cooperation activity shall be based on estimated cost of identified inputs.

4.6 RECRUITMENT, PROCUREMENT, AND CONTRACTING

63. The following principles shall apply to recruitment and procurement of goods and services for a development cooperation activity, whether administered by Government agencies/national institutions or development partners:

• Competitiveness and transparency. Procurement shall follow internationally recognised competitive-bidding practices, requiring a wide search for the most qualified suppliers. Competitive prices shall guide the selection of supplier, with due attention accorded to quality and specifications of equipment. For small purchases bidding may be waived.

• Equal access to opportunity. Procurement shall be administered in such a way as to provide opportunity to all qualified suppliers. Small, medium and large enterprises shall have equal access to opportunities.

• Domestic preference. In the first instance, preference shall be given to domestic enterprises to supply equipment, goods and services, provided the suppliers are able to meet the specifications and price competitiveness. Suppliers must be able to demonstrate their ability to provide technical and after-sales support.

• Specification. Detailed specifications of equipment, goods and services shall be provided prior to undertaking a procurement action.

• Government’s Import Policy and suitability of equipment for the proposed development cooperation activity shall be taken into account.

64. Goods and services procured for an agreed development cooperation activity shall not be subject to Government taxes and duties. Ministries and agencies undertaking procurement of Equipment, Goods and Services (as well as civil works) on behalf of a development cooperation activity shall strictly follow the procurement rules and procedures of the Royal Government. To enhance the national ownership, the following procedures shall be adopted.

Selection of Sub-Contractors
The funding development partner(s) shall:

• Submit a request for a “no objection” letter to the Program/Project if the use of funding development partner(s) procedures is to be used for the selection of a sub-contractor before any action is taken.

• Provide the Program/Project Director or his representative a “seat at the table” during the selection process.

• Establish a joint selection procedure whereby both the development partner(s) and the Program/Project Director must agree on the selection of a sub-contractor.

• Seek approval of the Program/Project Director of the short list of qualified sub-contractors.

• Development partner(s) and Program/Project Director jointly select the sub-contractor from the approved short list.

Selection and Recruitment of Program/Project Personnel
The funding development partner(s) shall:

• Seek approval of the terms of reference of an expert or consultant from the Program/Project Director.

• Submit a request for a “no objection” letter to the Program/Project if the use of development partner(s) procedures is to be used for the recruitment of an expert or consultant before any action is taken.

• Provide the Program/Project Director or his representative a “seat at the table” during the selection process, if possible inviting the Program/Project Director or his representative to interview candidate.

• Establish a joint selection procedure whereby both the development partner(s) and the Program/Project Director must agree on the selection of an expert or consultant.

• Seek approval of the Program/Project Director of the short list of qualified candidates.

• Development partner(s) and Program/Project Director jointly select the expert or consultant from the approved short list.

Procurement of Goods and Services
The funding development partner(s) shall:

• Submit a request for a “no objection” letter to the Program/Project if the use of development partner(s) procedures is to be used for the procurement of good and services before any action is taken.

• Provide the Program/Project Director or his representative a “seat at the table” during the procurement process.

• Establish a joint selection procedure whereby both the development partner(s) and the Program/Project Director must agree on the selection of a supplier.

• Seek approval of the Program/Project Director of the short list of qualified suppliers.

• Development partner(s) and Program/Project Director jointly agree on the selection of a supplier.

4.7 CUSTODIANSHIP, USE AND MAINTENANCE OF EQUIPMENT

65. The custodianship, use and maintenance of any equipment procured to implement a development cooperation activity that has been funded by development t partner(s) shall be the responsibility of funding development partner(s) until the time when the ownership is transferred to the implementing institution(s).

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