Development Co-Operation Programme

DEVELOPMENT CO-OPERATION PROGRAMME

THE CZECH REPUBLIC

AND

THE REPUBLIC OF YEMEN

FOR THE 2006–2010 PERIOD 2 Abbreviations

CR Czech Republic CZK Czech crown (Czech currency) DC IIR Development Centre of the Institute of International Relations EC European Commission EU European Union GDP Gross Domestic Product GNI Gross National Income IDA International Development Association of the World Bank IDC International Development Co-operation IMF International Monetary Fund MDGs Millennium Development Goals NGO(s) Non-governmental organisation(s) NIP National Indicative Plan OECD/DAC Organisation for Economic Co-operation and Development/ Development Assistance Committee PDRY People’s Democratic Republic of Yemen RoY Republic of Yemen PRSP Poverty Reduction Strategy Paper RoY Republic of Yemen UN United Nations YAR Yemen Arab Republic WTO World Trade Organisation

3 Table of Contents

1. SUMMARY 5 2. OBJECTIVES AND PRINCIPLES OF THE INTERNATIONAL DEVELOPMENT CO- OPERATION OF THE CZECH REPUBLIC 7 3. YEMEN AS A PARTNER IN THE DEVELOPMENT CO-OPERATION OF THE CZECH REPUBLIC 7 4. ECONOMIC, POLITICAL, AND SOCIAL SITUATION IN YEMEN 11 5. DEVELOPMENT PRIORITIES OF THE YEMENI GOVERNMENT 14 6. PRIORITIES OF THE DEVELOPMENT CO-OPERATION BETWEEN THE CZECH REPUBLIC AND YEMEN FOR THE YEARS 2006–2010 16 SECTORAL FOCUS OF THE PROGRAMME 16 GEOGRAPHIC FOCUS OF THE PROGRAMME 16 INDICATIVE SUMMARY OF THE DEVELOPMENT CO-OPERATION PROGRAMME OF THE CR AND YEMEN FOR THE 2006–2010 PERIOD 16 7. INSTITUTIONAL FRAMEWORK, MANAGEMENT AND IMPLEMENTATION OF THE PROGRAMME 20 8. PROGRAMME EVALUATION AND MONITORING 21

4 1. Summary

The Principles of International Development Co-operation, approved by the Czech Government in Resolution 302 of 31 March 2004, established that an essential component of Czech International Development Co-operation (IDC) is comprised of programmes of development co-operation with priority countries. The objective of these programmes is that of contributing towards the promotion of the principles of partnership, efficiency, and transparency. The Czech government has identified the Republic of Yemen as one of the priority countries for long-term development co-operation, primarily due to the following:

 the need for development co-operation in this poorest of Arab countries  the positive evaluation of Czech development projects (thus far)  the effort to support security and stability in the region  the potential for exporting Czech technology to Yemen  the long tradition of relations with the Czech Republic and the former Czechoslovakia

Yemen is one of the least developed countries in the world; according to the UNDP in 2004, it ranked 149th out of the 177 countries on the Human Development Index. GDP per capita is only USD 500, which ranks Yemen in one of the last places in terms of national wealth. Sixteen percent of the Yemeni population live in extreme poverty (less than USD 1 per day), 45% in poverty (less than USD 2 per day), and every fifth person suffers from malnutrition. The very high population growth rate (3.4% in 2003), high infant and maternal mortality rates, high illiteracy among women, and high unemployment (35% in 2003) are characteristic of the social problems the country is facing. The water supply situation is already critical, a circumstance that is particularly striking when set against the increasing water demands of an expanding population.

Yemen underwent the complicated process of consolidating two different political and economic systems after the country’s unification in May 1990. The civil war in 1994 had a negative impact on the internal political and economic situation. In recent years, the Yemeni Government has commenced a comprehensive programme of economic, social, and political reforms, which are being supported by donor organisations.

The Czech Republic will focus on water management, energy, and education sectors in its development co-operation programme with Yemen. These sectors are of key importance to the development of the country and, at the same time, correspond to comparative advantages of the Czech Republic:

Development co-operation in the water management sector will focus on:  assistance in the area of wastewater treatment  assistance in the area of drinking water treatment  other water management activities and water resource protection

The priorities in the energy sector are the supply of new technology and electricity grid management procedures.

5 Development co-operation in education will be focused on providing scholarships to universities and shorter, specialised courses aimed at the above-mentioned priority sectors.

6 2. Objectives and Principles of the International Development Co-operation of the Czech Republic

As a member of the European Union (EU) and of the international community of democratic and economically developed countries, the Czech Republic (CR) recognises the principle of mutual solidarity among peoples and states, and accepts its share of responsibility for resolving global problems. International development co-operation (IDC) is one expression of this attitude and represents an integral component of Czech foreign policy. The CR, in accordance with EU principles, and the protection of its interests, conducts and provides its own IDC on both bilateral and multilateral levels. Approved by the Czech Government in Resolution 302 of 31 March 2004, the Principles of International Development Co-operation define international development co- operation in the broader sense as a deliberate government policy directed at partner developing and transition countries. In the narrower sense, IDC represents assistance supplied by the Czech state, with the objective of promoting long-term sustainable development in its partner countries, in the form of transfer of finances or material, or technical assistance. Among the chief objectives of Czech IDC are the following: poverty reduction; economic-industrial development and the gradual integration of the partner countries into the world economy; agricultural development; the development and entrenchment of democracy, human rights and good governance; the establishment of rule of law; migration management; sustainable development with an emphasis on its environmental components; and post-conflict reconstruction. The Foreign Development Aid Concept for the 2002–2007 Period, adopted by the Czech Government in Resolution 91 of 23 January 2002, cited contribution towards poverty reduction in less-developed parts of the world through the promotion of sustainable economic and social development, in line with the efforts of the international community, as the overall objective in the area of Czech international development assistance. The CR adopts a multidimensional approach to the reduction of poverty, which cannot be understood in solely economic terms as low per capita income within a population, but instead must be viewed in the context of other social and environmental factors as well. The CR fully supports the international Millennium Development Goals (MDGs) adopted at a series of UN conferences in the 1990s and confirmed by the 2000 UN Millennium Summit. The main target is to halve the proportion of people living in extreme poverty by 2015. The Czech Republic’s international development co-operation is founded on the principles of partnership (IDC must be driven by demand for assistance on the part of the beneficiary country, rather than be donor-driven), efficiency, and transparency. Czech IDC reflects the CR’s interests and needs, and contributes to the enhancement of political and economic relations between partner countries and the CR. The provision of IDC is also in line with the security interests of the CR. The Principles of International Development Co-operation after CR Accession to the EU, approved by the Czech Government in Resolution 302 of 31 March 2004, established

7 that programmes of co-operation with priority countries are an essential component of Czech international development co-operation, with the objective of contributing towards the promotion of the principles of partnership, efficiency, and transparency. The existence of programmes will make development work more predictable and simplify planning activities for all parties involved in development co-operation. In line with the objectives defined in the Principles of International Development Co- operation and the foreign policy interests of the CR, the Czech Government has approved the intention to focus its IDC, over the long-term, on the following priority countries: the Republic of Angola, Bosnia and Herzegovina, the Republic of Moldova, Mongolia, Serbia and Montenegro, the Socialist Republic of Vietnam, the Arab Republic of Yemen, and the Republic of Zambia.

8 3. Yemen as a Partner in the Development Co-operation of the Czech Republic

In Resolution 302 of 31 March 2004, the Czech government identified the Republic of Yemen as one of the priority countries for long-term development co-operation, primarily due to the following:

 the need for development co-operation in this poorest of Arab countries  the positive evaluation of Czech development projects thus far  the effort to support security and stability in the region  the potential for exporting Czech technology to Yemen  the long tradition of relations with the CR, or the former Czechoslovakia

The high degree of need for development co-operation stems from the desperate state of the country’s economic and social situation and the overall low level of human development (Yemen ranked 149th out of 177 countries on the “Human Development Index” in 2004). It is the poorest country in the Arab world: its position on the list of the eight priority development co-operation countries is, therefore, of utmost importance.

Czech – Yemeni relations started on an economic level in 1918, when Yemen broke free from Ottoman rule, and in the 1930s they began on a political level. In 1938, a friendship and co-operation agreement with the kingdom of Yemen was signed (ratified in January 1939); this was understood as establishing diplomatic relations. Under this agreement, both parties were to set a date on which they would commence diplomatic and consular activities. Czechoslovakia signed a new Friendship Agreement on 5 July 1956, which led to the establishment of diplomatic relations on 3 September 1956.

Czechoslovakia was one the first countries to recognise the new government after the monarchy was overthrown in 1962 and the Yemen Arab Republic (YAR) was declared. Czechoslovakia and YAR signed a new Friendship Agreement in 1964, and the establishment of a Czechoslovak embassy in Sana’a was approved in December of that year.

After the second Yemen state was established, Czechoslovak relations with the two countries developed on different levels, according to the political differences between the two countries.

From 1970, Czechoslovak relations with the People’s Democratic Republic of Yemen (PDRY) grew quite intense due to the ideological compatibility of the two former regimes. The PDRY became a recipient of Czechoslovak foreign aid in the form of university scholarships. A Friendship and Mutual Co-operation Agreement was signed in 1981. Czechoslovakia had extended a number of inter-governmental loans from 1974 onwards, which totalled USD 43 million. The issue of Yemeni obligations towards the Czech Republic was settled by the Czech Ministry of Finance, in an arrangement carried out under the guidance of the IMF, under which nearly one half of this debt was ceded, and the rest designated as part of the IDA donor programme on the basis of an intervention by the Ministry of Foreign Affairs.

9 Czechoslovakia recognised the Republic of Yemen (RoY) in 1990 after the unification of the PDRY and YAR, and continued its co-operation in various areas. The new Yemeni state undertook to respect all treaties and agreements, which the Czech Republic had signed with the former PDYR and YAR. The RoY was one of the first Arab countries to recognise the Czech Republic after it was established in 1993. In its position as a non- permanent member of the UN Security Council, the CR actively intervened to speed up the ending of the Yemeni civil war (May-July 1994). It supported a resolution on the situation in Yemen and, in accordance with this resolution, supported demands for the immediate end to fighting and dispute resolution through political means, and a request to stop supplies of arms and other military material to Yemen.

With its IDC, the CR is attempting to build upon the previous good levels of co- operation. Only one project has been implemented in recent years; others are due to commence in 2005 (see Table 1, below).

Table 1: CR development co-operation projects implemented in Yemen since 1999

Project Responsible Implementation Implementing Ministry of the CR Period Institution Set up of an ecological Ministry of 1999–2004 FOA - Ecological network and agro-forestry Agriculture Agriculture solutions aimed at the Foundation sustainable development of the Sokotra island Supply and treatment of Ministry of Trade and 2005–2006 Asio, s.r.o. drinking water in the Industry Sokotra Archipelago region Assistance in wastewater Ministry of 2005–2007 Asio, s.r.o. disposal and recycling in the Agriculture Hadibo hospital

In addition to the above, there was also a proposed project for “Lamb production optimisation by crossing local breeds with other suitable breeds in Yemen”, which was scheduled to start in 2005 with a budget of CZK 10 million.

Czech bilateral co-operation also includes government-funded scholarships for Yemeni citizens to study at Czech universities. Czech universities have a very good reputation, and many of their Yemeni graduates attain the highest posts in the civil service there.

The Czech Republic has a good standing in Yemen due to its traditionally friendly relationship. This standing could be used to increase commerce and, in particular, to support exports.

10 4. Economic, Political, and Social Situation in Yemen

Economic situation Yemen is one of the 50 poorest countries in the world, and the poorest Arab country. In 2004, it ranked 149th out of 177 countries on the Human Development Index, which reviews economic and social development. According to UN figures, 45% of the population live below the poverty line:

Table 2: Yemen’s basic economic and social indicators (World Bank data, 2004)

1999 2002 2003 Population, total 17 million 18.6 million 19.2 million Life expectancy N/A 57.4 N/A Infant mortality rate N/A 83/1000 N/A Under 5 mortality rate N/A 114/1000 N/A

Literacy above 15 years (%) 45.1 49 N/A

Female literacy above 15 years 23.9 28.5 N/A (%) GNI per capita, Atlas method USD 390 USD 490 USD 520

GDP growth (%) + 2.7 + 3.6 + 3.8

Foreign debt N/A USD 3.5 billion N/A

Debt service (% of export) 4.5 3.3 N/A

Direct foreign investment - USD 307 USD 114 million N/A million Development aid per capita USD 26.9 USD 31.4 N/A

In spite of the unfavourable economic statistics, foreign experts agree that Yemen has a number of comparative advantages that make it an interesting country for investment in the medium term. The most interesting of these is the market of 20 million people. It also has a wealth of natural resources (oil, gas, cobalt, nickel, gold, uranium, etc.) and a potential for the establishment of a customs free zone in Aden.

11 Political situation After the unification in May 1990, the Yemeni economy had three basic problems to deal with. The first was to absorb the non-performing centrally planed economy of the southern part of the country. The second, and no less serious, was the expulsion of nearly 1 million Yemenis working in Saudi Arabia and Kuwait. This took place as a result of these countries’ reaction to Yemen’s stance in the first Gulf War, during which it served as a non-permanent member of the UN Security Council. Through this expulsion, Yemen lost a significant source of income from remittances. Furthermore, the inability of the Yemeni economy to absorb the returning workers led to an enormous jump in unemployment. The third problem that marked the economy was the civil war in 1994 (the ensuing damages are estimated at USD 7 billion).

In 1995 after the end of the war, the Government commenced a reform programme. The programme’s objectives were the restructuring and partial privatisation of the economy in the southern part of the country, unemployment reduction, and exchange-rate stabilisation of the currency: the Rial. In the subsequent years the economy reported a solid growth rate; however, the high unemployment and high inflation rate problems continued.

Population growth Yemen has experienced huge population growth in the last three decades, with the population increasing by a factor of 2.5. The population grew from 12.8 to 18.4 million during the 1990-2000 period. The 0-15 age group makes up 48.8% of the total population. There has been a relative improvement in people’s perception of population issues in recent years. A marked improvement can also be seen in the general demographic indicators, such as the fertility rate reduction to 5.9 children born per woman. Current fertility rates are 6.9 for illiterate women and 3.2 for women who have completed elementary education.

Even though the population growth rate over the past ten years has reduced to the current rate of roughly 3%, Yemen still has one of the highest growth rates in the world. If the current rate continues, Yemen will have a population of 43 million in 2025. The population explosion is completely incompatible with the economic resources available, and is a limiting factor to economic and social development.

Water and water sources Yemen is located in a dry region, with about 500-800 mm of rainfall in the highlands, 50- 100 mm in coastal regions, and up to 50 mm in the eastern regions. As there is a complete lack of sufficient water sources, one of the main development programmes is the protection and revitalisation of the current capacity. The critical water supply problem is compounded by the rapid population growth. Agriculture and manufacturing industry are also making increasing demands on water resources. Water management studies show clear incompatibility between available sources and water use. In agriculture, for example, there is a clear contradiction between inadequate water supply and the cultivation of water-intensive crops (i.e. bananas, khat).

12 Drinking-water quality is very low in many areas. People are forced to drink water with high mineral content, or even brackish water. Wastewater treatment is very underdeveloped, though it could represent a potential renewable source for the future. Water could be conserved through recycling, and treated wastewater could be used for irrigation. Technology, which can turn industrial wastewater into drinking water, is not used.

Energy Electricity production in Yemen is at the level of app. 3 billion kWh. The increased supply is not enough to satisfy increased demand stemming from the growing population and urbanisation. Current output of 800 MW leaves 12% of the demand uncovered. Energy sector reforms focus on power network capacity building, power grid construction, electrification of rural areas, and on up-grading existing electricity plants.

13 5. Development Priorities of the Yemeni Government

The Yemeni Government has laid out its development priorities in a number of fundamental strategic documents:

 the 2025 Strategic Vision  the first five-year development plan 1996-2000 and the second five-year development plan 2001-2005 1  the Poverty Reduction Strategy Proposal (PRSP)  the National Indicative Plan (NIP) for 2002–2004 and 2005–2006

These documents are supplemented by a number of smaller sector-specific strategies, which include:

 the National Water Strategy  the Population Policy and Population Programme of Action  the Basic Education Strategy  the Health Sector Reform Scheme

The Yemeni Government has approved a strategy for achieving its Millennium Development Goals (MDGs) and undertaken to regularly monitor their fulfilment (in Government Decree 104, of 2003). As the MDG fulfilment report shows, however, it cannot be expected that these goals will be fully achieved in Yemen.

The following development priorities of the Yemeni Government have been taken from the above strategies: 1. Poverty reduction:  the Government wants to reduce poverty by ensuring economic growth of 4.7% p.a. with particular emphasis on sectors that are not related to oil extraction  the population policy intends to reduce the growth rate to 3% in 2005  creation of new job opportunities

2. Improvement in social services standards:  increase the percentage of the population with access to health care to 65% in 2005  increase the percentage of the population with elementary education to 69.3% in 2005 and reduce differences in education levels between men and women, and between different regions  expand university study opportunities

3. Infrastructure improvement:  increase household access to untainted drinking water and improve water distribution network quality

1 A new Poverty Reduction Strategy for the next 5 years will be published in 2005

14  construct irrigation systems and dams, and improve water management in agriculture  increase electricity coverage to 40.3% of the population, and reduce network loss by 25%  build 3 300 km of tarmac roads

4. Protection for the socially vulnerable:  improve the quality of social protection, including the expansion of the social benefits system  educate 5430 people with disabilities in special education facilities and create job opportunities for them

5. Economic growth and stability:  obtain economic growth with emphasis on sectors not related to oil extraction (see point 1 above)  reduce inflation to below 10% and the budget deficit to below 4%  further trade liberalisation and WTO membership

The Yemeni Government welcomes both bilateral and multinational international co- operation to assist it in achieving its ambitious development goals. Co-operation can be in the form of development projects implementation or loans from the World Bank (including IDA).

15 6. Priorities of the Development Co-operation between the Czech Republic and Yemen for the Years 2006–2010

Sectoral Focus of the Programme

In view of the extensive Yemeni development needs, and limited financial and human resources, the CR will focus its co-operation on two selected sectors. The CR can play a significant role in planning development targets in Yemen, above all in the power and the water management sectors. Water management, including drinking water and wastewater treatment, is a very crucial sector for Yemen. Czech projects already undertaken (or already prepared) in this area prove that we have much to offer. Our aid is much welcomed and highly valued by the Yemeni citizens.

In accordance with the Yemeni Government’s priorities, there is great interest in energy sector co-operation, particularly for control and monitoring systems, which can prevent the high losses incurred during power transmission. Another priority for Yemen is the electrification of the country, which requires the construction of new power plants.

A key area in the long-term future development of Yemen is to improve the standard and qualifications of its human resources. All future projects should, therefore, include some form of human resources support, which would increase the qualification level of the Yemeni population. This is closely linked to the education sector, in which the CR intends to gradually increase the number of scholarships to its universities, thereby enabling a greater number of students to achieve the required standard of education.

Geographic Focus of the Programme The CR will focus its co-operation mainly on Southern Yemen (the former PDRY), specifically the Hadramout province, which includes the Sokotra archipelago, as the Yemeni Government is interested in assisting this less-developed part of the country.

Indicative Summary of the Development Co-operation Programme of the CR and Yemen for the 2006–2010 Period 1. Water management sector

Water management is one of the key development priorities of the Yemeni Government. The country is situated in an area with relatively low rainfall and limited water resources of inadequate quality. Yemen has no single, all-year-round water source. Surface water is limited to what comes from rainstorms. The sub-surface sources, which are exploited relative to their natural capacities, are receding, and wells often contain brackish water.

Due to the rapid demographic growth, the shortage of water is an increasingly pressing issue. It is caused, among other things, by the fact that this essential public asset is being wasted. The government was, therefore, forced to introduce minimum charges for water. Apart from the negative impact on health resulting from limited access to potable water,

16 it is clear that further economic development of the country is conditional on the availability of drinking water at a reasonable cost. Therefore, water management must be improved to prevent further losses.

In Yemen, there are only 137 m3 of renewable water resources per capita per year, which is very little compared to the average of 1 250 m3 in the other Arab countries and the global average of 7 500 m3 (figures as per Yemen – Poverty Reduction Strategy Paper, PRSP).

Eighty percent of water resources are used in agriculture. However, “khat” (similar to coca leaves) cultivation accounts for a major share of the irrigated areas, which are then not used for food production. Combined with inefficient irrigation techniques, this is an important source of water wastage.

The combination of all the above factors, together with a rapid population growth and inefficient centralised management by government institutions, has lead to an unsustainable situation with respect to water resources.

For this reason, the government has launched an extensive programme to restructure water supply systems. All major donors, including the World Bank, support the programme. Its objective is to have 69% of towns and 65% of rural areas covered by public water supply networks by the end of 2005.

The water shortage can also be alleviated by wastewater treatment, which will expand fertile soil areas and create green strips, which can serve as a barrier against the advancing desertification of the country.

The Czech development co-operation in the sector will be focused on:

- transfer of experience of wastewater treatment and recycling and drinking water treatment. - assistance in building new water sources (water reservoirs) - organisation of short-term water management courses which will secure the sustainability of future Czech development projects

2. Energy sector

The development of the energy sector and resolving the issue of drinking water sources are the basic pre-conditions for poverty reduction and modernisation of the country.

In Yemen, only 36% of the population have access to electricity, and this includes 25- 30% of households that experience frequent power cuts. A short-term goal of the Yemeni Government is to increase the electrification of the country to 40% in 2005 (PRSP) and to cover at least 22% of rural areas with power supplies, using both traditional sources of energy as well as alternative renewable sources like solar or wind power.

17 For the above reason, the electrification of Yemen is one of the country’s main priorities. The Government has prepared a 25-year electrification development plan, which sets out the objective of creating new sources with 3 000 MW output. According to the present calculations, this will require an investment of USD 1.8 billion. Power plants will mostly be gas-fired, because Yemen has sufficient gas reserves. In addition to power stations, Yemen needs to build new gas pipelines, new high-voltage west-east distribution networks (about 2 000 km), and to distribute electricity to more households. All this requires major foreign investments.

Apart from other large donors, international institutions like the World Bank are financing the generation and distribution of electricity. The World Bank has provided a loan of USD 70 million for the reconstruction of the existing distribution network. As part of bilateral co-operation, Germany has provided a soft loan to the Yemeni Government of USD 25 million.

A pressing issue for Yemen is the incidence of large power losses during distribution from the source to the consumer. According to official estimates, the losses are around 25-30%; however, in reality they represent up to 50%. For this reason, the focus on control and digital monitoring systems is a major priority for the Yemeni Government, as a reduction of losses could significantly contribute to the expansion of power distribution. This is an area where the Czech Republic can offer its assistance, as it has extensive experience in this field with Czech companies successfully penetrating world markets.

The Czech development co-operation in the energy sector will be focused on:

- the construction of control and digital monitoring systems - assistance in the construction of new energy sources - organising short training courses on energy, which will ensure the sustainability of future Czech development projects.

. Cross-cutting Issues

The cross-cutting issues for the development co-operation with Yemen include:

 efforts to achieve gender equality  support for human resources development, by granting government scholarships to study at Czech universities in particular

The tradition of granting scholarships to study at Czech universities to citizens of developing countries dates back to the ’50s. Since then, over 20 thousand recipients of government scholarships have graduated from Czechoslovak/Czech universities. Despite a reduction in the number of scholarships offered in the first half of the ’90s, the granting of scholarships is an important instrument in the CR’s development co-operation and it accounts for over 20% of bilateral development aid.

18 Yemen is one of the few countries that have the majority of its graduates from Czech universities returning home in order to make use of the knowledge they have acquired. Higher education in Czech Republic has a good reputation in Yemen.

The Czech Republic will gradually increase the number of scholarships at Czech universities, thus allowing more students to obtain the necessary education.

Special attention will be given to co-operation with the Hadramout University of Science and Technology, based in Mukkala. In addition, the CR will also offer short courses focused on the above priorities, i.e. water management and energy.

19 9. Institutional Framework, Management, and Implementation of the Programme

On the Czech side, the implementation of the development co-operation programme between the Czech Republic and Yemen will be guaranteed on the institutional level by the Ministry of Foreign Affairs, the Ministry of Trade and Industry, and the Ministry of Agriculture. The Ministry of Education, Youth and Sport will coordinate scholarship awards for studying at Czech universities.

Within the Czech Ministry of Foreign Affairs, the following bodies will be involved in the management of the programme: the Department of the Middle East and Africa, the Department of Developmental Co-operation and Humanitarian Aid (DDC), the Embassy of the Czech Republic in Sana’a, and the Development Centre of the Institute for International Relations (DC IIR).

The Department of Developmental Co-operation and Humanitarian Aid of the Ministry of Foreign Affairs will take part in the preparation of the development co-operation programmes and in any eventual modifications of it.

The Embassy of the Czech Republic in Sana’a will participate in the preparation of the programme of co-operation with Yemen and any eventual modifications of it. It will also take part in monitoring co-operation programme implementation. It will maintain a development dialogue with its partner institutions and, in particular, with the Government on both central and provincial levels. It will maintain contact with other donors (particularly the EC) in an effort to meet the objective of achieving maximum levels of complementarity, coordination, and coherence.

The Development Centre of the IIR will coordinate the drafting of the development co- operation programme. It will also provide advisory services to the relevant ministries in the efforts of selecting and formulating suitable development projects. The Development Centre will also assist in programme evaluation in co-operation with the Ministry of Foreign Affairs, the Ministry of Trade and Industry, and the Ministry of Agriculture.

The Ministry of Trade and Industry will be responsible for energy sector co-operation implementation. It will participate in the drafting of the programme for this sector and any eventual modifications of it. The Ministry will be responsible for implementing projects within the programme. This includes concluding contracts with entities that will implement the selected projects, responsibility for project financing, implementation, monitoring, and ensuring that funds are used efficiently.

The Ministry of Agriculture will have similar responsibilities for the water management sector projects.

The relevant public institutions will arrange their organisational structure in such a way as to ensure that the development co-operation programme can be implemented efficiently.

20 10. Programme Evaluation and Monitoring

Programme fulfilments will be monitored on an ongoing basis, and mid-term evaluation of the CR’s development co-operation programme with the Republic of Yemen will be conducted in 2007. Based on the results of that evaluation, the programme will then be altered to fully reflect the experiences gained in the course of the programme’s implementation, and any changes in Yemeni development priorities and society. The evaluation results will be used to assess if co-operation with Yemen should be expanded to cover other issues.

A final evaluation of the programme will be conducted in 2010. Decisions about future co-operation will be based on that evaluation.

The Ministry of Foreign Affairs (Department of Developmental Co-operation and Humanitarian Aid, and the Embassy of the Czech Republic in Sana’a) will conduct the evaluation and monitoring of the co-operation programme in close co-operation with the Development Centre.