Mozambique - National Decentralized Planning and Finance Program Project

Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC3714 Date ISDS Prepared/Updated: 12/02/2008 I. BASIC INFORMATION A. Basic Project Data Country: Mozambique Project ID: P107311 Project Name: National Decentralized Planning and Finance Program Task Team Leader: Ali Alwahti Estimated Appraisal Date: December 15, 2008 Estimated Board Date: April 16, 2009 Managing Unit: AFTU1 Lending Instrument: Specific Investment Loan Sector: Sub-national government administration (100%) Theme: Decentralization (P) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 25.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 0.00 B. Project Objectives [from section 2 of PCN] The Project Development Objective (PDO) is to improve the performance of the national planning and finance system by strengthening the capacity of local governments to plan and manage resources for social and economic development in a participative and transparent manner. C. Project Description [from section 3 of PCN] The Program operates both at central and local government levels and revolves around the core processes for local planning, budgeting, execution and accountability. It also assists central government to support to these processes through legal, policy and institutional strengthening, program management and knowledge management. The estimated total project cost is US$ 50.0 million of which the IDA contribution is US$ 25.0 million. Government provides direct district budget allocation to implement district plans annually. In 2006 this budget allocation was estimated at 3.0% of the national budget, and in 2007 it was estimated at 3.8%. The National DPFP provides the capacity building support at all levels to ensure increasingly effective development and implementation of these plans. Page 2 Component 1. National Support Systems (Central Level) This component will strengthen the national system of decentralized planning and finance and the integration of local planning cycles into the national processes. It will also develop the national tools and methodologies for implementation and monitoring of the program. 1.1. Support to development of Draft Legal, Policy and Methodological Instruments (i) Development of Draft Policies, Strategies and Legislation in support of administrative and fiscal decentralization (ii) Development of Methodologies and Tools in support of integration of decentralized planning and finance system into national planning process. (iii) Development of a National Decentralized System of Monitoring and Evaluation of District Performance 1.2. Institutional Strengthening (i) Development of a National Program for Capacity Development of Human Resources at district and provincial level 2. Support to Participatory Planning and Budgeting Component 2 will support implementation of the system of participatory and strategic planning and budgeting at the district level. (i) Facilitate and stimulate participation of communities in strategic planning and local development (ii) Introduce and consolidate the process of integrated strategic planning at local level (process of elaboration of District Development Plans - PEDD) (iii) Consolidate and harmonize the process of annual operational planning at local level (process of elaboration of Social and Economic Plan and Budget - PESOD) 3. Management and Execution Component 3 provides support to the districts for implementation of the district strategic plans. (i) Improve the capacity of local organs of state to implement, manage and maintain infrastructure for local delivery including procurement, contract management and environmental and social safeguards (ii) Facilitate the coordination of Local Economic Development activities with other activities in the planning process (iii) Improve financial management for district development including own revenue generation and collection (iv) Improve the mechanisms for information management and monitoring at district level (v) Finance construction and rehabilitation of public administration offices (small civil works) in 128 districts across the ten provinces 4. Internal and External Control (Oversight and Accountability) Component 4 deals with the control part of the planning cycle, and supports internal and external checks and balances as well as community oversight. (i) Extend the coverage of inspections and audits in provinces and districts (ii) Strengthen the internal control system in provinces and districts Page 3 (iii) Disseminate widely the results of various audits and M&E instruments in an accessible manner (iv) Contribute to improved participation of citizens in oversight of public management (v) Promote coordination between the Tribunal Administrativo (External Audit Tribunal), IGF (Internal Audit Function) and the UFSA (Procurement Unit in Ministry of Finance) and IGAE (Administrative Audit Unit) 5. Knowledge Management This component will strengthen the generation and use of knowledge at the district level as well as the feedback mechanisms between central and local levels of government. (i) Contribute to improving local management through learning feedback loops (ii) Influence national policies and strategies based on district experiences and accumulated knowledge at local level 6. Program Management D. Project location (if known) Implementation of the project is through the Ministry of Planning and Development at central level. Activities will be implemented at three levels of government: central, provincial and district level. The program has national coverage including all ten provinces and districts within these provinces. Procurement will be done at provincial and central level. E. Borrower