090615 aid financing modalities v2 (2)

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090615 aid financing modalities v2 (2)

  1. 1. INA Phase 2 Project Quick Win 9 – Aid Financing Modalities Towards relevant knowledge capture 15.06.09
  2. 2. Agenda <ul><li>Background </li></ul><ul><ul><li>Approaches and financing modalities </li></ul></ul><ul><ul><li>Process glossary classification </li></ul></ul><ul><ul><li>Challenges </li></ul></ul><ul><li>Proposed work-around </li></ul><ul><ul><li>Sector/non-Sector segmentation </li></ul></ul><ul><ul><li>Additional challenges </li></ul></ul>- -
  3. 3. Background Approaches and financing modalities - -
  4. 4. Background Process glossary classification <ul><li>Budget Support </li></ul><ul><li>Programme Estimates or Work Plan </li></ul><ul><li>Contribution Agreement </li></ul><ul><li>Delegation Agreement </li></ul><ul><li>Calls for Proposals </li></ul><ul><li>Calls for Tenders </li></ul>- -
  5. 5. Background Challenges <ul><li>How to identify (and report) sector approaches from non-sector approaches ? </li></ul><ul><li>Requirement for identifying additional information, i.e. Technical Cooperation, Microfinance etc… </li></ul>- -
  6. 6. Proposed work-around Sector/non-Sector segmentation <ul><li>We propose to add an additional field that identifies whether the Financing Modality is (or isn’t) a Sector Approach </li></ul>- - Aid Financing Modality Budget Support Programme Estimates or Work Plan Contribution Agreement Delegation Agreement Call for Proposal Call for Tender Sector Approach Y/N Y/N Y/N Y/N Y/N Y/N Amount € € € € € €
  7. 7. Proposed work-around Sector/non-Sector segmentation <ul><li>We propose to add an additional field that identifies whether the Financing Modality is (or isn’t) a Sector Approach </li></ul><ul><li>This combination will allow us to identify easily for instance what type of financing adopts a sector approach, and subsequently what does not adopt a sector approach </li></ul>- - Aid Financing Modality Budget Support Sector Approach Y Amount 80 mio €
  8. 8. Proposed work-around Additional challenges <ul><li>What about additional grain of information? </li></ul><ul><li>For instance, how would we able to identify Technical Cooperation ? </li></ul>- -
  9. 9. Proposed work-around Additional challenges <ul><li>Start with a practical example. Assume that it is decided to allocate to Country A, in the form of General Budget Support(GBS), the following: </li></ul><ul><li>104 mio. € of which : </li></ul><ul><ul><li>10 mio. € are provided as Contribution Agreement </li></ul></ul><ul><ul><li>4 mio. € in the form of Technical Cooperation via a Call for Tender </li></ul></ul><ul><ul><li>10 mio. As Call for Proposals </li></ul></ul><ul><li>This implies that in reality, the amount allocated to GBS = 104 – (10 + 4 +10) = 80 mio € </li></ul>- -
  10. 10. Proposed work-around Additional challenges <ul><li>In a graphical manner </li></ul>- - ∑ = 104 ∑ = 5 ∑ = 80 ∑ = 10 ∑ = 10 ∑ = 4 ∑ = 104 Aid Financing Modality Budget Support Programme Estimates or Work Plan Contribution Agreement Delegation Agreement Call for Proposal Call for Tender Sector Approach N N N N N N Amount (in mio. €) 80 10 10 4 Technical Cooperation (in mio. €) 1 4
  11. 11. Proposed work-around Additional challenges <ul><li>The information can be even fine-tuned </li></ul><ul><li>This would mean that out of the 10 mio. € donated in the form of Contribution Agreement, 1 mio. € is used in the form of Technical Cooperation, more specifically for Capacity Building </li></ul>- - Aid Financing Modality Contribution Agreement Sector Approach N Amount (in mio. €) 10 Technical Cooperation (in mio. €) 1 ∑ = 10 Capacity Building ∑ = 104 ∑ = 5 ∑ = 104

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