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Support to Decentralised Planning & Finance in the Provinces Of

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Support to Decentralised Planning & Finance in the Provinces Of i UNITED NATIONS CAPITAL DEVELOPMENT FUND UNITED NATIONS DEVELOPMENT PROGRAMME ___________________________________________________ Project ‘Support to Decentralised Planning & Finance in the Provinces of Nampula and Cabo Delgado /Mozambique’ (MOZ/01/C01 – MOZ/01/001) Mid-term evaluation report Winfried Borowczak Edda Collier Dermot O’Sullivan Aslak Orre Gaye Thompson Andreas Danevad (collaboration) final version 2.0 17.12.2004 ___________________________________________________________________________ i EXECUTIVE SUMMARY I. Background The project under evaluation represents a continuation, refinement and extension of two projects, namely MOZ/93/C01 ‘Local Development Fund Programme in Nampula Province’, (1995-1998) and MOZ/98/C01 – MOZ/98/001, the ‘District Planning and Financing Project in Nampula Province’ (1998-2001). The reason for the continuation and extension of the latter was due to the interest of UNCDF and other donors in extending the experiences gained to all districts in Nampula Province and replicating the Nampula experiences in other provinces. There was a common interest, too, of the GoM, UNDP/UNCDF and other donors to sustain the National Programme on Decentralised Planning and Finance, based in the DNPO. Project preparation started with the MTE of the previous Project MOZ/98/C01 – MOZ/98/001) in mid 2000, which recommended that the project be continued into a second phase to ensure the consolidation and sustainability of the results achieved. On this basis a Project Identification Mission was fielded in June 2000. The main result was a Project Concept Paper (PCP) for Nampula only. Following the PCP, the Government of Norway, through NORAD, indicated a strong interest in supporting a flexible replication of the Nampula experience in Cabo Delgado Province. This received a positive response from UNCDF and the Cabo Delgado Provincial Government as well. Following broad approval of the PCP, a Project Formulation Mission was fielded by UNCDF in November-December 2001. The principle outcome of this exercise was that phase II of the project would have three related but distinct components: (1) the consolidation and deepening of the Nampula pilot project, (2) the flexible replication of the Nampula experience in selected districts in Cabo Delgado, and (3) direct technical support for the development of the national PPFD programme. During 2002-2003 following the start of the phase II it became clear that there were in fact still 2 projects. This led to discussions between the UNCDF and UNDP about the effective integration of the two projects into one single project. This was finally agreed on the basis of an Amendment to the PRODOC of 2002 by a mission in September 2003. The expected practical consequences of this integration were to integrate PPFD Nampula, PPFD Cabo Delgado and the former UNDP project in DNPO into a single PPFD project with (1) one integrated management structure, (2) one integrated and mutually supportive log-frame, and (3) one single integrated budget. II. Description of the project Development objective To contribute to poverty reduction through improved local governance. The immediate objective To increase access by rural communities to basic infrastructure and public services, through sustainable and replicable forms of decentralized, participatory planning, budgeting, financing and public management. The project has 7 outputs: Output 1: Participatory planning cycle for local government (districts, municipalities and provinces) established, institutionalised and made self-sustaining. ii Output 2: Local government financial systems established and managed in a responsible and transparent manner that increases local government income. Output 3: Provincial and District Governments have established and institutionalised a transparent system for the implementation, supervision, operation and maintenance of basic infrastructure. Output 4: Institutional (including human) capacity strengthened and made self- sustaining for improved local government performance. Output 5: Gender and vulnerable group issues effectively mainstreamed into local development and governance processes. Output 6: Innovations such as local economic development, natural resource management and district-municipality integrated planning included in the decentralized planning methodology. Output 7: Best practices generated through decentralised planning are systematized, standardized and articulated in support of the elaboration of a National Strategy for Decentralized Planning and Financing. It was agreed in the Amendment that district development plans are elaborated on the basis of the introduction of participatory planning techniques and the establishment of community consultation. These plans will be vertically and horizontally integrated into the planning and budgeting system. District development funds are established to support the funding of small infrastructure projects identified and prioritized in district development plans. Funds are managed by local administrations in a transparent way. Support is given to local administrations to increase their revenue generation capacities through the introduction of improved and transparent accounting procedures. Small infrastructure projects are identified and prioritized with community participation and in a transparent way. Local communities are supported to be involved in the supervision of construction and the operation and maintenance of the infrastructure. The capacity of local government is strengthened through training of trainers in relation to all aspects of the planning cycle and local government finance. As poverty-orientated district development plans are sensitive to gender and vulnerable groups, support shall be given to increase the participation of women in community participation structures and procedures. The needs of women and vulnerable groups are taken into account in the elaboration of annual plans and in the prioritization of activities. Local economic development and natural resource management will be reflected in district development plans and annual operational plans. The coordination of district development plans with municipal plans will be supported. The project seeks to ensure that the experiences and positive lessons from the provincial pilots are mainstreamed and reflected in national policy relating to decentralized planning and finance and the wider public sector reform process. III. Main Evaluation Findings Evaluation of project design, organization and management The finally agreed and implemented integration of 3 project components into 1 single project with (1) one integrated management structure, (2) one integrated and mutually supportive log-frame and (3) one single integrated budget was correct. But the Amendment did not overcome that both Nampula, as well as Cabo Delgado continue to operate with different sets of indicators, verification means and assumptions. The definition of the Immediate Objective (III.) is rather problematic. Placing the desire to “increase access by local communities to basic infrastructure and public iii services” at the outset of the objective can give the misimpression that the project is primarily concerned with provision of infrastructure. The “character” of the project as basically a learning project for different actors, including ideally the whole population, to improve governance on district and local level could be unintelligible. Another defect of the objectives and outputs is their rather over-ambitious nature. The log-frame is overloaded with pre-defined activities and sub-activities, so that the project staff has only a small margin of flexibility to react positively in face of new developments or challenges, which may emerge during the implementation of the project or if they do so, then the project is put under stress. An aspect of this overload is the lumping together of quite different issues especially in Output 6 (see III.), which includes such different areas as local economic development, natural resource management and others. This incoherence is emphasised by the fact that in both provinces’ project staff, there is no real experience, expertise or capacity in the mentioned areas. The general point here is that due to the sequencing of activities, combined with the heavy workload resulting from an over-ambitious log-frame together with, at the same time, the slow delivery of essential inputs (funds, equipment, allocation of personnel), the project was put under stress and at risk of serious delays from the outset. But even under these sometimes adverse conditions, the components managed to keep the project on the right track. Evaluation of results Output 1: Achievements: Participatory planning cycle for all 18 districts in Nampula province is established and institutionalised. All districts have a District Development Plan. First steps of the participatory planning cycle in 3 districts in Cabo Delgado Province have been undertaken. Preparations for the introduction of the participatory planning cycle in another 3 districts in Cabo Delgado province have been started. Constraints: The participation system is still not self-sustaining. Strong dependency on NGOs to foster the participation cycle. Still no sign of introduction of participatory planning in the municipalities. Output 2: Achievements: Elaboration and establishment of a system for the register and control of district revenue. First positive results in some districts in Nampula province, where a transparent financial management
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