Municipal Governance Program QUARTERLY REPORT

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Municipal Governance Program

QUARTERLY REPORT

April 1 – June 30, 2011

CHF 08/01/2011

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY ...... 1

II. PROGRAM ACCOMPLISHMENTS ...... 3

III. SIGNIFICANT WINS & CONSTRAINTS ...... 5

IV. PLANNED ACCOMPLISHMENTS ...... 0

V. CONCLUSION ...... 20

VI. ANNEXES ...... 21

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

I. EXECUTIVE SUMMARY

The Nicaragua Municipal Governance Program (MGP) is a five-year program implemented by CHF International (CHF), strategically targeting municipalities to improve citizen involvement in local government and their quality of life. CHF designed a methodology that is flexible, transparent, and demand driven. The MGP will draw on international best practices in municipal capacity building, citizen participation, and small infrastructure programming from CHF, ARD Inc and SNV to offer an integrated assistance package to a diverse range of municipalities. The goal of MGP is to help municipal governments improve the delivery of basic public services to their constituents. MGP will result in improved municipal performance, enhanced citizen perception of their local leadership, and tangible benefits to capacity building. Our strategy addresses the needs and priorities as identified by stakeholders at the regional, local, and community levels and achieves the following four objectives:

a. Improve the capacity of municipal management, b. Modernize the delivery of municipal services, c. Strengthen citizen participation in public and local affairs, d. Promote access to public information as baseline to transparency and local governance.

The MGP made important inroads this quarter in its programmatic execution. It finished the all-important sequence of negotiating and signing of 26 municipal partnership agreements and subsequent 26 Municipal Competency Index (MCI) assessments and the formulation of 20 Municipal Action Plans (MAPs), the latter of which lays out the road map for customized MGP program assistance for partner municipalities (MGs). At the same time, MGP contracted out Citizen Participation and Access to Public Information assessments to complement, particularly on the demand side, the quality and level of citizen engagement and oversight of municipal public resource management and services delivery.

The MGP began providing technical assistance and institutional strengthening support to 15 MGs in the areas of municipal services assessments, financial and administrative management, leadership training to municipal councils and the pre-approval of nine infrastructure projects, two in execution, and 20 municipal infrastructure pre-investment plan projects. Lastly, the MGP launched its two annual Innovation Grants funds and selected 13 municipal development grants and seven citizen participation grants.

Major program results for the Q3 include:

 Signing of 26 Municipal Partnership Agreements;  26 Municipal Competency Indexes (MCIs) completed and 15 Approved Municipal Action Plans (MAPs)

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

 22 Citizen Participation and Access to Public Information (API) Assessments Completed;  Consolidation of 9 Infrastructure Construction Projects and 20 Infrastructure Pre- investment Projects;  Municipal Council Leadership Curriculum Developed and in Implementation;  15 MGs Receiving Technical Assistance in Municipal Management and Municipal Services Components;  Innovation Grants Fund RFA and Innovation Grants Selection; and  Gender Equity Policy, Norms and Strategy Approved.

Reflecting on program implementation and coordination with USAID and other stakeholders, CHF is highlighting the following critical constraints, lessons learned and successes that will be incorporated into future program execution:

Table 1: Significant Wins & Constraints

Wins Constraints1

 Rapid Mobilization of MGP Program Staff  Limited FSLN MG Autonomy to Withstand and Activities GON Pressure  Stakeholder Participation in Design  Delays in MGP Activities Start-up due to Workshop & Causal Pathway Strategic USAID External Impact Evaluation Framework is Validated Baseline Assessment  MCI Tool Instrumental in Justifying and  Difficulty Managing the Innovation Grants Orienting Program Intervention Fund Competitions  Small, Targeted Technical Assistance  Weaknesses in Existing MG Infrastructure Produces Big Impact and Client Pre-Investment Plans Satisfaction  Program Activities Start-up Resource Intensive but not Cost Intensive

1 See Wins/Constraints Section for lessons learned and actions taken

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

II. PROGRAM ACCOMPLISHMENTS

2.1 Signing of 26 Municipal Partnership Agreements

CHF started the third trimester by completing the signing of its municipal (MG) partnership agreements. CHF’s work plan anticipated singing between 15-20 MG partnerships. CHF invited 30 municipalities and signed 26 partnership agreements. Eleven of the 15 MGs are FSLN MGs while the remaining 15 are opposition MGs. Six of the 11 FSLN MGs have since then revoked their agreements due to pressure by INIFOM, who has refused to coordinate with the MGP. All six of these MGs have openly expressed a strong desire to continue with the MGP but would need a national framework agreement between USAID/CHF and the GON. The remaining five FSLN MGs are waiting to see what happens leading up to the national elections but have opted to maintain the partnership agreements but freeze program activities. USAID/CHF are actively engaging MINREX and Nuevo FISE to obtain a national framework agreement.

Table 2: Agreements status by corridors and departments

Total Agreements Agreements Status by Total Signed up “In Active revoked Corridor Selected to April Standby” to Agreements May-June 4th, 2011 June Northern 18 16 6 5 5 Corridor Nueva Segovia 7 7 4 1 2 Madriz 5 4 2 2 0 Matagalpa 6 5 0 2 3 Southern 12 10 0 0 10 Corridor Chontales 5 5 0 0 5 RAAS - Central 4 4 0 0 4 Río San Juan 3 1 0 0 1 Total 30 26 6 5 15

Table 3: Agreement status by MG

Revoked Standby Active Agreements Agreements Agreements

Ocotal Jícaro Quilalí Comalapa El Ayote

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Santa María Yalaguina Mozonte San Pedro de Lóvago El Rama San Fernando Totogalpa Rancho Grande Villa Sandino Nueva Guinea Macuelizo El Tuma La Dalia Río Blanco Santo Domingo Muelle de los Bueyes Palacaguina San Isidro Matiguas Acoyapa El Almendro Telpaneca

2.2 26 Municipal Competency Indexes (MCIs) completed and 15 Approved Municipal Action Plans (MAPs)

The MGP technical staff and a group of five short-term consultants carried out 26 MCIs in coordination with MG partners. The MCI is a comprehensive capacity assessment tool that is implemented in coordination with and through an active participation of senior MG officials and employees. The results of the MCIs are systematized and formulated into individual reports. Based on the report results, MGP staff and MGs develop customized MAPs that will guide technical assistance and institutional strengthening activities in each MG. While MGP and all 26 MGs formulated their MAPs, due to pressure from INIFOM, only 20 were formally presented to each and MG and only 15 have been approved.

Table 4: Efforts undertaken by the Program on the MCI and MAP data collection

Days/ % of Time Process people March April May June municipalites invested invested involved MCI Survey done in 11 effective 112 22/3/11 14/4/11 100% 26 municipalities days Formulation of 26 26 effective 241 28/3/11 5/5/11 100% MAP days Presentation to 20 12 effective 39 6/5/11 3/6/11 77% municipalities days 49 effective 392 days

The MCIs also serve as the MGP baseline assessment for three of the four of the program components (a more detailed baseline assessment is being carried out for each of the three prioritized municipal services). Since the MCIs can be tabulated to produce a snapshot score, MGP staff will apply the MCIs annual to assess levels of improvement in each MG (Table 4). It took 393 person days to carry out the MCIs and MAPS. Many mayors including those MGs that have withdrawn gave recognition and praised the accuracy of the MCIs in highlighting MG strengths and weaknesses and the customized response in each MAP to target high impact improvements in municipal resource management and services delivery.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Table 5: Matrix summary rating of the MCI component by town2

Score by Technical Area Municipal capacity index 4. 5. Public Municipalities 1. 2. Tax 3. Financial (MCI) Category Municipal Information Planning Collection Management VME=

epartment Governance Access VME3= 42 VME= 42 VME= 42 188 D VME= 48 VME= 14 Year 1 El Jícaro 21 10 22 24 5 82 E

Macuelizo 15 13 15 25 1 69 E

ovia Mozonte 17 11 21 24 3 76 F

Ocotal 19 35 28 35 6 123 B va S va

Quilalí 23 12 15 27 3 80 D Nue San Fernando 17 10 17 24 2 70 E Santa María 15 10 16 24 1 66 G

Palacagüina 25 11 19 24 3 82 F

Telpaneca 20 10 18 26 0 74 F

Totogalpa 12 9 19 20 3 63 E Madriz Yalagüina 23 11 19 12 0 65 G

El Tuma La Dalia 11 19 29 28 1 88 C

Matiguas 26 18 25 18 0 87 C Rancho Grande 23 13 23 25 0 84 E

Matagalpa Río Blanco 13 22 25 21 1 82 C San Isidro 22 10 15 33 3 83 D

Acoyapa 10 18 26 24 0 78 D

Comalapa 18 11 20 23 3 75 E San Pedro de Lóvago 17 14 25 24 0 80 E

Chontales Santo Domingo 15 10 20 22 1 68 D Villa Sandino 21 12 18 26 0 77 C

El Ayote 20 19 21 13 6 79 D

El Rama 19 18 21 27 6 91 B

RAAS Muelle de los Bueyes 13 12 20 23 7 75 D

Nueva Guinea 25 24 25 28 10 112 B

RSJ El Almendro 16 12 22 20 4 74 D

2 MGs highlighted in brown withdrew from the MGP; cells highlighted in yellow represent the highest scores in each technical area 3 Maximum potential value for this component

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

2.3 22 Citizen Participation and Access to Public Information (API) Assessments Completed

CHF hired two sub-contractors, CEAP and CEIM-URACCAN, to carry out citizen participation and API assessments in 26 municipalities. These assessments are complementary to the MCIs in that they engage civic actors to measure the quality and level of local civil society participation and co-responsibility in municipal management and services planning and oversight. The assessments also specifically address the level of awareness and usage by the citizens of the API law as applied to MGs. CHF was unable to carry-out assessments in three MGs since they withdrew from the MGP before the sub-contractors could conduct the assessments. One additional assessment is pending completion in July. The systemized results of these assessments will be completed in July; notwithstanding the Citizen Participation and API component leads have analyzed the preliminary results, which serviced to identify the 10 target Citizen Participation municipalities and seven API municipalities for the first year.

2.4 Consolidation of 9 Infrastructure Construction Projects and 20 Infrastructure Pre- investment Projects

Construction Projects Two of the nine construction projects are approved and currently under construction (Table 5). The remaining seven projects are in the approval and procurement stages and will be contracted-out next quarter. CHF estimates that $598,715 or 42% will be generated in cost- share through financial and in-kind contributions from MG and private sector actors. The following table breaks down each of the nine projects.

Pre-investment Plan Projects CHF highlighted in its previous quarterly report the absence of infrastructure pre-investment plans that are required in order to begin construction projects. CHF hired a Bolivian expert in the procurement, contracting and implementation processes for multiple pre-investment projects to develop the MGP Municipal Pre-investment Fund (FOPREMU in its Spanish acronym). CHF limited the types of infrastructure plans to water and sanitation so as to comply with USAID’s water earmark.

Twelve of the eligible 20 MGs applied to FOPREMU submitting 34 pre-investment plans. CHF selected the top 20 plans, which will allow MGs to seek funding from the MGP and other donor sources and leverage up over $2 million in infrastructure projects that are expected to benefit over 25,000 citizens. CHF hired three consultants to provide due diligence and upgrade each of the 20 approved applications, which will be passed on to engineering sub-contractors. CHF completed an open procurement process and selected six sub-contractors whom will divide the 20 projects between them based on their quality and efficiency. CHF expects the first pre- investment plans to be completed in August.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Table 6: Summary of infrastructure construction projects

CHF Nicaragua MGP Infrastructure Projects Summary (June 30, 2011)

$ Cost Proj. Municpiality/Project Name Project Description $ USAID $ Project # Benef. Status Start Date End Date Share Exec. El proyecto busca mejorar el acceso a la población 370 metros de adoquinado de la al mini-hospital local de El municipio El Almendro a 31/09/201 gasolinera al Hopital, Municipio El 88,764 39,026 127,790 16,258 Ongoing 31/05/2011 25% través del adoquinamiento de las calles aledañas, 1 Almendro beneficiando a 16,258 habitantes. E Poyecto busca mejorar la integración de la trama 193 metros de pavimento rígido urbana, disminuir costos de operación y 31/09/201 alrededor del parque central de Nueva 92,626 20,974 113,600 27,113 Onging 27/06/2011 5% mantenimiento vial de la cabecera municipal, 1 Guinea, Municipio Nueva Guinea beneficiando a la población del área urbana El proyecto busca iniciar el adoquinado de las calles del municipio, empezando por el centro original, 300 metros de adoquinado de calles Pending 31/12/201 mejorando acceso a la escuela pública y a la cancha 98,764 63,443 162,207 5,896 29/07/2011 0% de El Ayote, Municipio El Ayote Approval 1 deportiva, beneficiando a la población de la cabecera municipal. El proyecto busca mejorar el acceso a los Rehabilitación de tramo de camino El pobladores de las comunidades de El Zapotal y La Pending 31/12/201 Zapotal y La Sardina (14.56 km), Sardina, así como facilitar a los productores 90,500 52,627 143,127 403 12/8/11 0% Approval 1 Municipio San Pedro de Lóvago lecheros la salida de su producción, beneficiando a 403 beneficiarios El proyecto busca incrementar la fluides y acceso a 600 metos de adoquinado del sector - la cabecera municipal, mejorando el acceso a la Pending 31/12/201 87,192 61,612 148,804 7,799 24/08/2011 0% zona #2 y 4, Villa Sandino población de la zona 2 y 4, beneficiando unas 7.799 Approval 1 habitantes El proyecto busca mejorar el sistema de tratamiento de basura, a traves del establecimiento Pending 31/10/201 Relleno Sanitario, Municipio Matiguas 83,171 57,215 140,386 14,058 24/08/2011 0% de un relleno satinario en la cabecera del municpio, Approval 1 beneficiando a la población urbana El proyecto busca mejorar las condiciones actuales Construcción de sistema de de abastecimiento de agua en la ciudad de Quilalí, abastecimiento de agua y Pending 31/12/201 construyendo en la primera etapa un Tanque y una 64,619 29,710 94,329 7,988 24/08/2011 0.00% saneamiento en la ciudad de Quilalí, Approval 1 Planta de Tratamiento, beneficiando a 1.800 Municipio de Quilalí viviendas El proyecto busca rehabilitar 14 kilómetros de camino a las comunidades La Castilla N°1 y N°2 Rehabilitación camino a La Castilla Pending 30/11/201 mejorando el sistema de drenaje que le permita 102,566 265,597 368,162 2,088 24/08/2011 0.00% N°1 y N°2, Municipio Rancho Grande Approval 1 mayor vida útil a la inversión, beneficiando a 348 familias Mejorar las actuales condiciones de abastecimiento Construcción de Mini Acueducto por de agua en la comunidad Julio Buitrago, instalando Pending 31/12/201 Gravedad (MAG) Comunidad Julio 93,770 8,510 102,280 533 24/08/2011 0.00% 115 puntos de patio, perteneciente al Municipio de El Approval 1 Buitrago, Municipio El Tuma La Dalia Tuma – La Dalia, beneficiando 533 habitantes TOTAL 801,971 598,715 1,400,686 82,136

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Table 7: Summary of approved FOPREMU projects

FOPREMU

Pre- Estimated # of Studies Estimated # of MGs investment Investment Selected Beneficiaries Plans Cost Projects

US$ US$ 20 10 25,624 252,700 2,162,228

Table 8: Type of FOPREMU projects approved

Type of Project Number %

Gravity water and latrines 11 55

Electrical pumping water and latrines 5 25

Gravity water 2 10

Electrical pumping water 1 5

Storm and waste drainage 1 5

2.5 Municipal Council Leadership Curriculum Developed and in Implementation

The MGP completed the design of its municipal council leadership curriculum for this year. The curriculum contains four modules: Municipal and Citizen Participation Laws, Strategic Planning, Gender Equity and Youth Focus, and Role of Municipal Council Secretary. MGP technical staff designed the modules and along with short-term consultants (for the second module) will provide training to an estimated 75 municipal council members. The training began in June and will end in September.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Table 9: Description and timeline for municipal council leadership curriculum

Module Geographic Area ug.

Jul.

Jun.

Sep

Areas

Chontales/El Amendro

RAAS Northern Corridor

1. Municipal Law Chontales/El Amendro RAAS Northern Corridor Chontales/El Amendro 2. Strategic Planning RAAS North Corridor Chontales/El Amendro

Municipal Government Municipal 3. Gender Equity and Youth

Focus RAAS Corridor Norte 4. Role of Municipal Council South and North Corridor Sur Secretary

2.6 15 MGs Receiving Technical Assistance in Municipal Management and Municipal Services Components

9 MGs Receiving Technical Assistance in Financial Management Based on the results of the MCIs and MAPs, nine MGs from the Southern Corridor requested technical assistance to improve their internal financial management. Each of the MGs received assistance from the Finnish Embassy to install and operate a financial management system called OpenBravo. All nine MGs are experiencing some problems in the OpenBravos’s functionality and MG technical staff require additional training in managing the system and transitioning from a budget-based accounting (cash flow) to a financial-based accounting (balance sheets) as required by law. MGs will have to restructure its Administrative and Financial Office to include internal control procedures and manage a financial based accounting system. Most but not all MGs are open to reorganizing and redefining job responsibilities for its technical staff. CHF is closely coordinating with the Finnish Embassy and ARD hired three consultants to provide the technical assistance. The remaining six of the 15 MGs are using INIFOM’s SIAFM system. Despite repeated attempts to coordinate with INIFOM, INFIOM has been unresponsive and CHF has been unable to advance this training.

15 MGs Receiving Technical Assistance in Municipal Services Delivery Based on the results of the MG’s MAPs, MGP identified and prioritized three municipal services to receive institutional strengthening and technical assistance: solid waste

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

management, roads, and water and sanitation (predominately in that order). MGP is employing the “results-based learning” or learning by doing approach that works with MG municipal services technicians to carry out detailed assessments for each municipal service. ARD hired three consultants and trained them how to provide support in conducting the assessments and subsequently in developing Quality Service Improvement Plans per municipal service.

2.7 Innovation Grants Fund RFA and Innovation Grants Selection

CHF and SNV launched its two Municipal Development and Citizen Participation Innovation Grants funds RFAs on May 3rd. SNV published the RFAs in national circulation newspapers, with four radio stations and on its website. SNV also held three public events to present the details on how to apply to the grants, the grants review and selection process and to respond to any questions. A total of 141 individuals from 87 organizations participated in the presentations. SNV received 27 proposals for the Citizen Participation fund and 22 projects for the Municipal Development fund.

SNV hired ten consultants to sit on an expert panel and review all 49 proposals and select those that best matched the MGP goals, objectives and work plan indicators. The review panel submitted 30 proposals to the MGP Project Review Committee for consideration. The PRC selected and approved 20 final candidate proposals; seven pertain to the Citizen Participation fund and 13 pertain to the Municipal Development fund. All 20 projects need to be reviewed and approved by USAID. The total amount to be financed is $758,138: $299,178/39% for the Citizen Participation fund and 458,960/61% for the Municipal Development Fund (see Table 9 and 10 on the following pages).

2.8 Gender Equity Policy, Norms and Strategy Approved

CHF approved its MGP framework to streamline Gender Equity into all program activities. A gender equity expert worked with MGP staff to develop an organizational policy that incudes norms and a strategy that set the road map on how to operationalize gender analysis into program activities. This includes a gender equity analysis tool that MGP technical staff will use to develop terms of reference and set selection criteria for program activity procurements. Implementing partners will be trained by MGP staff and be required to include a gender equity analysis in its proposal development and work planning.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Table 10: Results – Citizen Participation Fund

Counterpart No. Organization Municipality USAID U$ Total US$ Duration US$

Association for Rancho Grande Community Agricultural 1 59,940.00 12,696.00 72,636.00 1 Year Development and Matiguás Diversification, ADDAC Comalapa Santo Domingo Chontaleña Women's 2 Acoyapa 100,000.00 43,640.00 143,640.00 1 Year Network San Pedro de Lóvago Villa Sandino Foundation for the promotion and 3 development of women Mozonte 19,237.50 3,000.00 22,237.50 8 Months and children "Blanca Arauz" FUNDEMUNI 4 San Lucas Foundation El Almendro 20,000.00 13,380.00 33,380.00 6 Months Institute of Social Research 5 Nueva Guinea 20,000.00 3,290.00 23,290.00 6 Months and Management , INGES Río Blanco 6 Popular Legal Center, CJP Matiguás 60,000.00 22,346.60 82,346.60 6 Months Rancho Grande Medical Christian Action, El Tuma La 7 20,000.00 9,215.00 29,215.00 1 Year AMC Dalia Total 299,177.50 107,567.60 406,745.10

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Table 11: Results – Municipal Participation Fund

Counterpart No. Applicant Organization Municipality USAID US$ Total US$ Duration US$

1 Municipal Government El Rama 30,000.00 12,746.54 42,746.54 1 Year Rancho 2 Municipal Government 17,253.10 5,031.60 22,284.70 6 Months Grande 3 Municipal Government Río Blanco 22,135.00 5,948.45 28,083.45 6 Months 10 4 Municipal Government Matiguás 30,000.00 7,500.00 37,500.00 Months San Pedro de 5 Municipal Government 29,561.00 9,793.75 39,354.75 8 Months Lóvago 6 Municipal Government Quilalí 30,000.90 12,102.55 42,103.45 1 Year 10 7 Municipal Government Nueva Guinea 30,000.00 20,077.00 50,077.00 Months Santo 11 8 Municipal Government 30,000.00 6,211.74 36,211.74 Domingo Months 9 Municipal Government El Ayote 30,000.00 10,257.85 40,257.85 8 Months Muelle de los 10 Municipal Government 30,000.00 30,000.00 60,000.00 8 Months Bueyes 11 Municipal Government Quilalí 30,000.00 7,884.00 37,884.00 1 Year Muelle de los Buelles Association of 12 Municipalities of Central, Nueva Guinea 120,000.00 24,000.00 144,000.00 6 Months AMUZEC El Rama El Ayote Municipal Quilalí Water 13 Quilalí 30,009.84 7,071.20 37,081.04 1 Year Company, EMAQ Total 458,959.84 158,624.68 617,584.52

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

Table 12: Summary of MGP Program Initiatives to Date by Municipality and Activities4

API Infra Pre-Inv. CP Inn. MD Inn. TA Muni TA Finan. MCI MAP Form. MAP Appr. CP Assess. # Total Assess. Projects Projects Grants Grants Serv. Mgmt. MGs 26 26 15 22 22 2 10 14 16 15 9 187 1 El Jícaro 1 1 1 1 4 2 Quilalí 1 1 1 1 1 3 3 1 12 3 Ocotal 1 1 2 4 Santa María 1 1 1 1 4 5 San Fernando 1 1 1 1 4 6 Mozonte 1 1 1 1 1 5 7 Macuelizo 1 1 1 1 4 8 Yalagüina 1 1 2 9 Totogalpa 1 1 1 1 4 10 Palacagüina 1 1 1 1 4 11 Telpaneca 1 1 1 1 4 12 Rancho Grande 1 1 1 1 1 1 2 1 1 10 13 El Tuma - La Dalia 1 1 1 3 14 Río Blanco 1 1 1 1 1 1 1 1 1 9 15 San Isidro 1 1 1 1 4 16 Matiguás 1 1 1 1 1 1 2 1 1 10 17 Comalapa 1 1 1 1 1 1 1 1 8 18 Villa Sandino 1 1 1 1 1 2 1 1 1 10 19 Santo Domingo 1 1 1 1 1 1 1 1 1 1 10 20 Acoyapa 1 1 1 1 1 1 1 1 8 21 San Pedro del Lóvago 1 1 1 1 1 1 1 1 1 1 10 22 El Almendro 1 1 1 1 1 1 3 1 1 11 23 El Rama 1 1 1 1 1 3 2 1 1 12 24 Nueva Guinea 1 1 1 1 1 1 4 1 2 1 1 15 25 El Ayote 1 1 1 1 1 2 1 1 9 26 Muelle de los Bueyes 1 1 1 1 1 2 1 1 9 Projects 20 7 13 % of municipalities total amount 100% 100% 58% 85% 85% 8% 38% 54% 62% 58% 35%

4 MGs highlighted in olive are withdrawn; MGs highlighted in tan are in standby.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

III. SIGNIFICANT WINS & CONSTRAINTS

2.1. Win: Rapid Mobilization of MGP Program Staff and Activities

The MGP program has accomplished an enormous amount of work when evaluating the level of effort required to undertake the four municipal assessments (MCI, Citizen Participation, Municipal Services and API), finalize and approve Municipal Action Plans and begin providing technical assistance and institutional strengthening support to MGs. As previously mentioned, the MGP completed 26 MCIs and 20 MAPs in 49 days investing 392 people days. Table 12 provides a break down by MG and activity type to highlight accomplishments to date. According to the table, the MGP is supporting 187 initiatives when broken down by municipality.

2.2. Constraint: Limited FSLN MG Autonomy to Withstand GON Pressure

After successfully negotiating and signing framework agreements with 11 FSLN municipalities, INIFOM began pressuring MGs to withdrawal from the MGP. The US Embassy event by the Public Affairs office that took place in Ocotal without prior knowledge or input form its MG added fuel to the fire and, in the eyes of the INIFOM, legitimized its argument of local governments bowing to USG unilateral actions. Since the Ocotal mayor led the negotiation of the framework agreement, its withdrawal after the US Embassy event soon prompted four other Nueva Segovia MGs to also withdrawal. Since then, six FSLN MGs have revoked their MGP partnership agreements including two MGs in neighboring Madriz. The five remaining FSLN MGs have decided to put their agreements “on-hold” until USAID/CHF is able to provide a national framework agreement that would allow the MGs to participate despite INIFOM´s pressure.

Action Taken: CHF is trying to negotiate an MOU with FISE; however, while FISE shows interest in partnering, it has been very slow to respond after having sent the MOU to MINREX and received comments back. CHF suggests waiting until after the national elections in November to see if any headway can be made at the national or local level to revive any of the 11 agreements.

2.3. Constraint: Delays in MGP Activities Start-up due to USAID External Impact Evaluation Baseline Assessment

CHF signed the last of its 26 partnership agreements on April 4th. However, CHF could not begin program activities at the MG level until USAID finished its independent impact evaluation baseline assessment, which concluded in the last week of May.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

2.4. Constraint: Program Activities Start-up Resource Intensive but not Cost Intensive

The MGP program description and first year work plan both highlight the important and necessary sequential timeline for program activity start-up as:

1. Municipal selection process; 2. Negotiation and signing of MG partnership agreements; 3. Municipal Competency Index assessments; 4. Approved Municipal Action Plans; and 5. Implementation of technical assistance and institutional strengthening based on MAPs.

Each step is required and must be completed before the next step can begin. This timeline experienced some delays in obtaining USAID’s technical concurrence on the municipal selection process and geographic focus. In addition program activities could not begin until USAID completed its independent baseline assessment, which required having the MG partnership agreements signed. While the importance of the transparent and participatory approach to engaging the MGs in the MGP start-up nor the level of effort required (remember 349 person days for steps three and four alone) cannot be underestimated, these initiatives were not cost intensive.

In addition, CHF ran into difficulties finding MGs with sufficient quantity and quality of infrastructure pre-investment plans that are required to begin construction projects. CHF countered by hiring several consultants to improve existing plans and launching FOPREMU to generate additional pre-investment plans. These points underscore the financial execution to date and the projected execution through the end of this fiscal year of approximately 75% of the FY11 budget. Since the MGP will be focused on program implementation instead of the municipal selection and start-up process, it does not foresee any difficulty in carrying over obligated funds from FY11 to the FY12 allocation of the life-of-project budget.

2.5. Win Stakeholder Participation in Design Workshop & Causal Pathway Strategic Framework is Validated

The stakeholders´ needs assessments carried-out during the MGP design workshop and their inclusion in the strategic framework were accurately reflected in the results of the MCI assessments and MAPs. The strategic framework mapped out the principal knowledge, attitudes and practices (KAPs) that the MGs need to acquire in order to reach the MGP’s overarching goals. The MGP developed its logical framework and subsequent 1st year work plan to implement activities that would get to the roots of the necessary behaviors and skills to improve KAPs. The MCI results reflected the same weaknesses and areas for improvement as identified during the MGP design process, which will focus and facilitate program activities in the upcoming months and years.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

2.6. Win: MCI Tool Instrumental in Justifying and Orienting Program Intervention

The MCI proved to be an efficient and streamlined tool that allowed the MGP to execute its application in 26 MGs in just 11 working days (employing 9 technical staff and 4 external consultants). The mayors were emphatic in their appreciation of actively participating in the assessments and the fact that the MGP is taking into considerations their individual needs rather than arriving with out-of-the-box prescribed solutions to municipal needs.

2.7. Constraint: Difficulty Managing the Innovation Grants Fund Competitions

The MGP, through SNV, set up an expert consultant panel to review all incoming grants to give recommendations to the MGP Project Review Committee on how to proceed with grants selection. The PRC realized soon after receiving the grants, that while the expert panel applied technical criteria in the grants reviews, the individual consultants had a limited understanding of the MGP context, its program objectives and work plan and logical framework indicators. Some projects that were recommended were technical sound but did not accurately reflect or mesh overall program objectives. In many cases, the MGP technical staff was required to review the grants and help restructure activities to better align grants with the MGPs goals and indicators.

Lesson Learned: CHF recommends developing more detailed terms of reference that require grantees to develop proposals that tie in and are directly aligned with program goals and objectives to limit the amount of time required to re-work the proposals. CHF also recommends not using an independent review panel but rather the MGP’s own technical staff who know best what proposals are aligned and incorporated into the MGP work plan and logical framework.

2.8. Constraint: Weaknesses in Existing MG Infrastructure Pre-Investment Plans

Last quarter, CHF identified the lack of MG infrastructure pre-investment plans as constraint to implementing its Municipal Investment Fund and first year construction projects. CHF offset this constraint by launching FOPREMU. However, even those pre-investment plans that did exist lacked the technical merit to development terms of reference in order to turnaround and bid them out.

Action Taken: CHF hired three short-term technical consultants to help the MGP Infrastructure Manager upgrade and prepare the pre-investment plans and procurement tenders. CHF also hired its Grants and Contracts Procurement Specialist with a background in civil engineering to assist in the procurement process and technical oversight.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

2.9. Wins: Small, Targeted Technical Assistance Produces Big Impact and Client Satisfaction

Customized packages of technical assistance can generate quick wins and significant results. Two examples of customizing technical assistance based on the MCI results include training municipal councilmen/women on the municipal and citizen participation laws and specific technical assistance to nine municipalities in training their staff on how to use the OpenBravo financial system.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

IV. PLANNED ACCOMPLISHMENTS FY Q4 Main Results Jul. Aug. Sep. 1 2011 Municipal Council Leadership curriculum completed 2 Improved capacity of the MG Municipal Council Secretaries 3 Technical assistance to MGs in the formulation of municipal budgets initiated 4 Organizational, functional and procedural manuals created/strengthened for MG Admin and Financial Offices 5 Municipal services assessments completed in 15 MGs 6 Municipal Quality Services Improvement plans completed in 15 MGs 7 Emergency Contingency Plan approved and operational 8 API Office grant agreements signed and equipment delivered to 7 MGs 9 MG authorities and technicians from 7 MGs trained in the API law and decree 10 API offices with internal procedures and information systematized and accessible to public in 7 MGs 11 Key civic actors (local leaders, youth, women, journalists) trained in API rights and responsibilities 12 Citizen Participation and API assessments processed and systematized Signed agreements with Citizen Participation service providers to strengthen grassroots organizations in 12 13 prioritized MGs Strengthen citizen participation during budget consultation, councils and regular meetings of the Municipal 14 Council 15 Initiation of Municipal Development and Innovation grants 16 One infrastructure project completed and 7 others in execution 17 Municipal Association assessments under World Learning initiated 18 Best practices in municipal development and citizen participation systematized

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

V. CONCLUSION

The withdrawal of FSLN municipalities is a temporary blow to the MGP and it is unfortunate that these MGs do not have sufficient autonomy to withstand GON pressures. CHF hopes that USAID/CHF will have success in negotiating a national-level framework to appease the FSLN MGs and reduce INIFOM’s grip. CHF will continue to knock on doors at both levels in search of a solution and suggests waiting until after the national elections in November before deciding whether to discard these MGs and open the Program to new applicants.

Notwithstanding, the MGP made important inroads this quarter in its programmatic execution. It finished the all-important sequence of negotiating and signing of 26 municipal partnership agreements and subsequent 26 Municipal Competency Index (MCI) assessments and the formulation of 20 Municipal Action Plans (MAPs), the latter of which lays out the road map for customized MGP program assistance for partner municipalities (MGs). At the same time, MGP contracted out Citizen Participation and Access to Public Information assessments to complement, particularly on the demand side, the quality and level of citizen engagement and oversight of municipal public resource management and services delivery.

MUNICIPAL GOVERNANCE PROGRAM AID 524 -10 - 00006

VI. ANNEXES

The following annexes are attached in digital format:

1. Annex 1: MGP Fact Sheet 2. Annex 2: Q3 Success Story 3. Annex 3: Photo News 4. Annex 4: Picture Bank