The current Head of Delegation received a complex programme with a very large number of small projects, that was in part a result of the multiplicity of instruments used,114 but also reflected the previous management approach. In fact, the area of concentration in the NIP (see chapter 1.B) was so broadly defined that it allowed interventions in almost any area, while geographical dispersion persisted too. On arrival, the new Head of Delegation (in consultation with the NAO) “rationalised” the project portfolio. However, this was only an initial step and the programme is still complex, with limited focus.
In the EC’s current programme, projects are active or being prepared in the following areas: - roads
- health
- education (within the RDP)
- private sector (although joint financing) - agriculture
- fisheries
114
NIP, Structural Adjustment Facility, Article 254 and 255 funds, Food Security budget-lines, two rehabilitation budget-lines, other budget-lines and regional funds.
Design weaknesses: road programmes
The EC’s earlier road programmes were designed at a time when the EC had limited capacity in the Delegation.
An assessment by an EC road appraisal mission noted that both the Beira-Inchope Road and the Emergency programme in Sofala (but not in Zambézia) suffered from important weaknesses: 1
- in design (particularly because of the time lag between preparation and implementation),
- in contracting (arguably with weaknesses in selecting contractors, and too lax conditions in enforcing the contract), and
- in supervision (with inadequate capacity and resources).
- In addition, it was difficult to re-tender where there was a weak contractor or supervisor because of the time involved in following EC procedures.
A key factor was seen to be the fact that the supervision team was not part of the construction tender evaluation or the negotiation of the construction contract.
These weaknesses are reported to have resulted in poor performance, with long delays and excessive cost over-runs (70% higher than estimates in Sofala). However, the assessment found better performance in the management of the emergency operations in Zambézia.
It is expected that the TA for financial management in ANE will make clarifications and resolve pending issues in project accounts (see also issues in ROCS and ANE, p.40).
In the recent Nampula-Nacala road programme, the EC appears to be learning from previous experience, e.g. a supervision team to be part of construction tenders and negotiations. However the detailed design (1998) was subject to significant criticism by backstopping advice by consultants from the EC, which argued that the analysis was skewed in favour of engineering analysis, that it failed to distinguish financial and economic analysis, and that no use was made of EC manuals.
- water
- elections - justice
- work with NGOs.
This is a burden on EC staff and leads to a situation where the EC engages in administration rather than strategic management. However, in the context of Cotonou and the simplification of some of the EC aid instruments, there is greater scope to focus the programme.
Some progress towards greater programme focus
The rehabilitation programme, with its wide range of EC aid instruments, contributed to a lack of overall strategy and coordination with the Government (which had particularly weak capacity).115
A more focused strategy should also be possible given the ending of the rehabilitation programme (and the rationalisation of some budget-lines116), and given that collaboration with NGOs is beginning to be rationalised (mainly through the RDP 117 and NGO interventions through the Food Security Unit).
..… but some other factors have contributed to greater dispersion. At the same time, the dispersion of the portfolio (and consequently the workload of EC staff) is being increased by a number of factors:
• Wider focus on institutional issues. The need to give greater focus to budget, financial control and public sector reform in structural adjustment support programmes places additional demands on staff. Similarly, the need to participate in the sector-wide approaches in the health, agriculture (with a very significant contribution by FSU) and education sectors, increases demands on staff time. The EC is also beginning to increase its monitoring of institutional issues in the road sector.
• Demanding support for elections (1998 and 1999). Support for elections has made particularly high demands on staff time. For a large part of 1999 the EC’s programme of support for the 1999 general elections required the full-time attention of one member of the Delegation staff as well as careful follow-up by the Head of Delegation.
• Food Security support for reform of the Ministry of Industry and Trade (MICOM). In addition to supporting PROAGRI, the Food Security budget-line is also supporting the reform of MICOM.118 This is a particularly difficult task.
• RDP includes a significant education component. While in the past the EC had limited direct involvement in the education sector, it has now begun to follow discussions on the sector-wide approach (through the NGO Unit). The RDP allocates as much as 55% of funds to the education sector.
• Involvement in the water sector. The EC recently became active in the water sector for the first time. ZAMWAT was recently approved (€ 11.6 million). The EC is also
115
The rehabilitation programme was problematic because a range of instruments were used for very similar purposes, with each instrument having its own procedural rules (EC 1999g, p.25). 116
The complexity of the portfolio has been reduced through changes in the aid instruments used: Article 254 and 255 of the Lomé Convention have ceased to apply, and food aid (which ended in 1996) has been replaced by the Food Security budget-line.
117
However, note that RDP still consists of a large number of projects (about 20 different interventions). A Micro-projects programme is also being used to support NGOs.
118
With the FAO, the EC has been providing TA to the National Directorate of Internal Trade (DNCI) supporting the development of the Government’s Trade and Policy Strategy and institutional restructuring.
preparing a second major water sector intervention, the Beira Urban Water Supply and Sanitation Project.