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A O Omsl Ukraina 03/09:06 C Contract-Financed TechnicalCo-operation on tr and LocalOwnership ac Contract-Financed Technical t - F in a This evaluation deals withcontract-financed technical n c Co-operation and Local co-operation (KTS)as aparticular aid forminSwedish ed T development co-operation. Inparticular the study e c explores the link between localownership and the hni Ownership various characteristics of KTS projects, suchas being ca l demand-driven,limited in time, scope and financial C volume,involveacompetent localpartner and based on o-ope Ukraine Country Study Report acontract between aconsultant and the localpartner r a JoãoGuimarães (LPO),cost-sharing and limited involvement by Sida.The t evaluation alsoanalyses the dynamics between the ion Raymond Apthorpe a Oleksander Stegniy three main stakeholders (the LPO, the consultant and nd Sida)and the applicability of KTS as anaid modality in L o different nationaland localcontexts. ca l O w The evaluation is based on case studies in seven ne recipient countries withdiffering socio-economic rs profiles and environments for development co-operation hip (Botswana, Mozambique,Egypt,Guatemala, Lithuania, U k r Mongoliaand Ukraine). a ine C The evaluation comprises a synthesis report and seven o u n country studies(in six volumes). try S tu d y R epo rt S id aE VA LUA TION SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY 03/0 Department for Evaluation and InternalAudit 9 : Address:SE-105 25Stockholm,Sweden. 06 Visiting address:Sveavägen 20,Stockholm. Tel:+46 8 698 50 00.Fax:+46 8 20 88 64. E-mail:[email protected] www.sida.se SidaEVALUATION Contract-Financed TechnicalCo-operation and LocalOwnership Ukraine Country Study Report JoãoGuimarães Raymond Apthorpe Oleksander Stegniy SidaEVALUATION 03/09:06 This report is part of SidaEvaluations ,a series comprising evaluations of Swedishdevelopment assistance. Sida’s other series concerned withevaluations, SidaStudies in Evaluation,concerns methodologically oriented studies commissioned by Sida.Both series areadministered by the Department for Evaluation and Internal Audit,anindependentdepartment reporting directly toSida’s BoardofDirectors. Reportsmay beordered from: Infocenter,Sida S-105 25Stockholm Telephone:(+46)(0)8 506 42 380 Telefax:(+46)(0)8 506 42 352 E-mail:[email protected] Reports arealsoavailable todownloadat: http://www.sida.se Authors:JoãoGuimarães,Raymond Apthorpe,Oleksander Stegniy The views and interpretations expressed in this report are the authors’and do not necessarily reflect thoseof the SwedishInternationalDevelopment Cooperation Agency,Sida. SidaEvaluation 03/09:06 Commissioned by Sida, Department for Evaluation and InternalAudit Copyright:Sidaand the authors Registration No.:2001-2823 DateofFinalReport:August 2002 Printed by Elanders Novum Art.no. SIDA2216en ISBN91-586-8511-1 ISSN 1401–0402 SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY Address:S-105 25Stockholm,Sweden. Office:Sveavägen 20,Stockholm Telephone:+46 (0)8-698 50 00.Telefax:+46 (0)8-20 88 64 Telegram: sida stockholm. Postgiro:156 34–9 E-mail:[email protected]. Homepage:http://www.sida.se Table of Contents 1Introduction ....................................................................... 1 1.1 General..................................................................................... 1 1.2The Assignment........................................................................ 3 1.3This Country Report ................................................................ 5 2Approachand Method ............................................................. 7 2.1 The Fieldwork.......................................................................... 7 2.2ADiscussion and Operationalisation of KTS Characteristics.9 2.2.1 General................................................................................ 9 2.2.2ACautionary NoteonIndicators .......................................... 10 2.2.3Indicators and Scales.......................................................... 11 2.2.4 Content of the Co-operation ................................................. 11 2.2.5 ContractualArrangement..................................................... 12 2.2.6Sida’s Role ........................................................................ 13 2.2.7The Meaning of ‘Demand-Driven’....................................... 14 2.2.8 Cost-sharing ...................................................................... 15 2.2.9 Limited Projects .................................................................. 16 2.2.10Competent Partners ............................................................. 17 2.2.11 SwedishConsultants ........................................................... 18 2.3Ownership:Some Aspects and Indicators.............................. 19 2.3.1 General.............................................................................. 19 2.3.2What is Owned,by Whom ................................................. 19 2.3.3Indicators of Ownership ...................................................... 21 3Ukraine:The Nationaland OrganisationalContext .... 25 3.1 Acountry in Transition.......................................................... 25 3.2EconomicSituation ................................................................ 26 3.2.1 Crisis and the Beginnings of Recovery .................................... 26 3.2.2 Economicand SocialConsequenses of the Crisis...................... 27 3.3The SpecialContext of PublicOrganisations........................ 28 3.4 PublicOrganisations:Transparency and Corruption ............ 29 4SwedishAssistance ............................................................... 32 4.1 Introduction ............................................................................ 32 i 4.2The Country Strategy............................................................ 33 5KTS Projects in Ukraine........................................................ 35 5.1 General................................................................................... 35 5.2The Application of KTS Characteristics............................... 37 5.2.1 KTS Characteristics in Ukraine:aSynopticView.................. 37 5.2.2Content of the Co-operation ................................................. 37 5.2.3Contracts,Contract Power and its Use.................................. 39 5.2.4 Sida’s Role ........................................................................ 41 5.2.5 Demand-Driven Projects ...................................................... 42 5.2.6Cost-Sharing ...................................................................... 42 5.2.7Limited Projects .................................................................. 43 5.2.8 Competent Partners ............................................................. 43 5.2.9 SwedishConsultants ........................................................... 44 5.2.10The Application of KTS in Ukraine:Some Concluding Remarks............................................................................ 45 6LocalOwnership in KTS Projects in Ukraine .............. 46 6.1 AnOverview........................................................................... 46 6.2ASynopticView of LocalOwnership ................................... 46 6.3Ownership of KnowledgeOutputs ........................................ 47 6.4 Ownership of Objectives........................................................ 48 6.5 Ownership on Project Formulation ........................................ 49 6.6Ownership of Implementation............................................... 49 6.7Some Concluding Remarks on Ownership ............................ 50 7Context,Ownership,and the KTS Characteristics: anInterpretation ............................................................. 52 8Some Conclusions and Questions for the Synthesis Report............................................................ 58 Annex 1List of Questions Used as Guidelines for Interviews ............................................................... 63 Annex 2 Short Descriptionsof the Projects Examined ... 67 Annex 3 List of People Interviewed.................................... 76 Annex 4Terms of Reference .............................................. 78 ii Abbreviations BITS Boardfor InternationalTechnicalCo-operation EU EuropeanUnion GDPGross DomesticProduct IFC InternationalFinanceCorporation KTS Contract-financed TechnicalCo-operation LPO LocalPartnerOrganisation NGONon-GovernmentalOrganisation PARPublicAdministration Reform PPD PublicProcurement Department SidaSwedishInternationalDevelopment Co-operation Agency Sida-Öst Department for Centraland EasternEurope ToRTerms of Reference UNDPUnited Nations Development Programme WTOWorld Trade Organisation iii Chapter 1 Introduction 1.1 General This report presents the main results and conclusions of the evaluation study carried out in Ukraine as part of abroader evaluation of contract- financed technicalco-operation and localownership. Contract-financed TechnicalCo-operation (KTS) is one of the aid forms used within SwedishInternationalDevelopment Co-operation Agency (Sida)for technicalassistance. KTS is used primarily,but not ex- clusively,in countries that fall outside the conditions tobedesignated as traditionalpartner countries.Theseinclude especially middle-income and transitioncountries.All KTS projects,in one way or another,involve transfer of technicalknowledge. Nevertheless, they differ from eachother in the way in which this transfer takes place. In training projects,for in- stance, the transfer of knowledgeis itself the project’s main
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