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IFAD10/1/R.2 Agenda: 3 Date: 21 January 2014 E Distribution: Public Original: English

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IFAD10/1/R.2 Agenda: 3 Date: 21 January 2014 E Distribution: Public Original: English Document: IFAD10/1/R.2 Agenda: 3 Date: 21 January 2014 E Distribution: Public Original: English IFAD at the Midterm of the Ninth Replenishment Note to Consultation members Focal points: Technical questions: Dispatch of documentation: Kevin Cleaver Deirdre McGrenra Associate Vice-President Head, Governing Bodies Office Programme Management Department Tel: +39 06 5459 2374 Tel.: +39 06 5459 2419 e-mail: [email protected] e-mail: [email protected] Lakshmi Menon Associate Vice-President Corporate Services Department Tel.: +39 06 5459 2880 e-mail: [email protected] Iain Kellet Associate Vice-President Financial Operations Department Tel.: +39 06 5459 2403 e-mail: [email protected] Gary Howe Officer-in-Charge Strategy and Knowledge Management Department Tel.: +39 06 5459 2262 e-mail: [email protected] Mohamed Beavogui Director and Senior Adviser to the President Partnership and Resource Mobilization Office Tel: +39 06 5459 2240 e-mail: [email protected] Consultation on the Tenth Replenishment of IFAD’s Resources — First Session Rome, 20-21 February 2014 For: Review IFAD10/1/R.2 Contents Abbreviations and acronyms ii I. Introduction 1 II. Delivery of the IFAD programme of work under IFAD8 and the first year of IFAD9 2 A. IFAD’s new business model 2 B. Delivery of the IFAD8 programme of loans and grants and programme of work 2 C. Delivery of the IFAD9 programme of loans and grants and the programme of work 4 D. The new IFAD business model and delivering the IFAD8 and IFAD9 programme of work 5 E. Conclusions and prospects for 2014 and 2015 7 III. Increasing IFAD’s operational effectiveness under IFAD9 7 A. Key IFAD9 commitments and actions taken 8 B. Conclusion and prospects for 2014 and 2015 18 IV. Increasing IFAD’s institutional effectiveness and efficiency under IFAD9 19 A. Institutional efficiency 19 B. Human Resources reform 23 C. Conclusions and prospects for 2014 and 2015 25 V. Strengthening IFAD’s financial capacity and management 26 A. Organizational strengthening 26 B. IFAD’s financial model 27 C. Internal resource mobilization 29 D. New sovereign donors and alternative financing modalities 29 E. Conclusion and prospects for 2014 and 2015 31 VI. Enhancing IFAD’s results management system and results to date 32 A. Project baseline surveys 32 B. Impact evaluation 33 C. Results to date: contributions to development outcomes and impact 33 D. Results to date: contribution to country programmes and project outputs 36 E. Results to date: institutional effectiveness and efficiency 37 F. Conclusions 39 VII. Conclusions and prospects for 2014 and 2015 39 Annexes I. IFAD9 commitment report and status to date II. Overall MOPAN ratings of IFAD III. Report on IFAD Policy on Gender Equality and Women’s Empowerment IV. ASAP operational progress and achievements V. Consolidated Action Plan to Enhance Institutional Effectiveness and Efficiency i IFAD10/1/R.2 Abbreviations and acronyms ARM Additional Resource Mobilization ASAP Adaptation for Smallholder Agriculture Programme B&MGF Bill & Melinda Gates Foundation CFS Controller's and Financial Services Division CGIAR Consultative Group on International Agricultural Research CLEE Corporate-level evaluation of IFAD’s institutional efficiency and the efficiency of IFAD-funded operations COM Communications Division COSOP country strategic opportunities programme CPM country programme manager CPMT country programme management team CSD Corporate Services Department DFID Department for International Development DSF Debt Sustainability Framework GAFSP Global Agriculture and Food Security Program ICO IFAD country office ICT information and communications technology IEE Independent External Evaluation of IFAD IFAD8 Eighth Replenishment of IFAD’s Resources IFAD9 Ninth Replenishment of IFAD’s Resources IFPRI International Food Policy Research Institute IMI Innovation Mainstreaming Initiative KfW Development Bank of Germany MAR Multilateral Aid Review MOPAN Multilateral Organisation Performance Assessment Network PMD Programme Management Department PoLG programme of loans and grants PPPs public private partnerships PRM Office of Partnership and Resource Mobilization PTA Policy and Technical Advisory Division QA quality assurance QE quality enhancement RBA Rome-based agency RIDE Report on IFAD’s Development Effectiveness RIMS Results and Impact Management System RMF Results Measurement Framework SCF sustainable cash flow SKM Strategy and Knowledge Management Department SPD Strategic Planning Division UN-SWAP United Nations system-wide Action Plan ii IFAD10/1/R.2 Executive summary Introduction 1. The Governing Council, at its thirty-fifth session held in February 2012, adopted resolution 166/XXXV on the Ninth Replenishment of IFAD’s Resources (IFAD9), covering the period 2013-2015. The target member contribution level was set at US$1.5 billion in order to finance and implement a three-year programme of loans and grants (PoLG) of US$3 billion. 2. The support given to IFAD9 reflected the Members’ increased concern with the state of global food security and rural poverty. It was also a reflection of the confidence of Members in IFAD’s capacity to undertake a more effective programme of work. 3. At the conclusion of the Consultations, Members urged IFAD to raise the quantity and quality of its operations by significantly increasing the resources mobilized from domestic and international partners. The aim was to achieve investments in agricultural development, poverty reduction and improved food security totalling US$7.5 billion. This would in turn allow IFAD to extend the outreach of the programmes it supports to 90 million rural men and women, and enable 80 million of these people to lift themselves out of poverty. 4. For the IFAD9 period, IFAD undertook to enhance its development, operational and institutional effectiveness and efficiency and develop an improved framework for measuring its results. More specifically, IFAD made commitments in four thematic areas:1 (a) Increasing operational effectiveness through a series of measures focusing on: aid effectiveness; scaling up; private-sector engagement; gender equality and women’s empowerment; climate change and sustainable management of environmental resources; project efficiency; country-level decentralization; fragile states; national monitoring and evaluation systems; South-South and triangular cooperation; and partnership and advocacy. (b) Increasing institutional effectiveness and efficiency through new management tools for cost analysis and control, and a consolidation and innovation of human resources management systems, policies and practices. (c) Strengthening financial capacity and management through effective responses to changes in the financial environment in which the Fund operates and by upgrading IFAD’s financial model in line with industry best practice and exploring new forms of internal and external resource mobilization. (d) Enhancing the results management system through the revised Results Measurement Framework (RMF) for 2013-2015, with a particular emphasis on impact evaluation.2 5. The Report of the Consultation on the Ninth Replenishment of IFAD’s Resources called for a midterm review of IFAD9 to be presented at an early session of the IFAD10 Consultation. This review responds to that commitment. Its purpose is to report on progress made by IFAD during the IFAD9 period through 2013, with progress under IFAD8 serving as the backdrop.3 The document also includes a discussion of the operational and institutional results to date and the prospects for 1 The specific commitments under each of the four themes, plus the actions taken and progress to date are elaborated in annex I. 2 See Report of the Consultation on the Ninth Replenishment of IFAD’s Resources (document GC35/L.4), pp. iii- iv. 3 Although the financing of IFAD9 projects and programmes started at the beginning of 2013, IFAD had begun work on the other IFAD9 commitments in 2012. iii IFAD10/1/R.2 the delivery of all IFAD9 commitments within the remaining two years of IFAD9 (2014 and 2015). Delivery of the IFAD8 and IFAD9 programme of work 6. Since the conclusion of the IFAD9 Consultation in 2011, IFAD has successfully delivered the IFAD8 PoLG, which amounted to US$2.9 billion. The Fund was also successful in raising additional resources through cofinancing from international and domestic sources, delivering a total programme of work of US$7 billion under IFAD8. 7. In 2013, the first year of IFAD9, the Fund delivered a PoLG of nearly US$900 million and is confident that the entire programme of US$3 billion will have been delivered by the end of the IFAD9 period. However, as international and domestic cofinancing of agricultural projects has declined since the increases observed in the 2007-2009 period, IFAD may find it difficult to reach the goal of a total programme of work of US$7.5 billion for the IFAD9 period. 8. The delivery of an expanded programme of work under IFAD8 and the first year of IFAD9 that meets both the volume targets and the quality targets set in IFAD’s RMF has been made possible by implementing and continuously improving IFAD’s new business model. The reformed quality enhancement and quality assurance programmes have contributed to raising the quality of projects at entry. Direct supervision and implementation support have enabled IFAD to address issues on the ground much more expeditiously and effectively. And increased country presence, through the opening of 40 country offices, has brought IFAD closer to its clients, enabling it to address project-related issues and to engage more fully in country policy dialogue. 9. IFAD will continue to refine its business model to ensure delivery of the programme of work for the remaining two years of IFAD9 and to achieve or surpass the results and impact expected of it under IFAD9. It will also step up its resource mobilization work to respond to declining cofinancing flows, with the goal of meeting the planned programme of work of US$7.5 billion for IFAD9. Increasing IFAD’s operational effectiveness 10. In response to the IFAD9 commitments to increase the Fund’s operational effectiveness, IFAD has taken action in all the areas stipulated by the Consultation.
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