Capacity Building for Poverty Reduction
- Reference: P-AO-IE0-001
- Approval date: 23/02/2011
- Start date: 14/02/2012
- Appraisal Date: 12/10/2010
- Status: OngoingOnGo
- Implementing Agency: MINISTERE DU PLAN
- Location: Angola Central and Provincial
The project will consist of the following three components:
(i) Institutional and human capacity strengthening
(ii) Performance management strengthening and
(iii) Project management.
Component I: Institutional and human capacity strengthening:
Institutional capacity building: Institutional capacity analysis shall be conducted in order to facilitate consensus on key capacity gaps in relevant Ministries, Departments and Agencies (MDAs) and prepare capacity building strategy to address the gaps. This activity will examine public sector performance aspect that need to be improved, such as accounting, audit, financial management, procurement and civil service reforms. Support will also be provided under this sub-component in policy development to establish an appropriate legal and regulatory framework for the operation of a fully integrated project implementation support system that will be coordinated by the Ministry of Planning. In order to ensure the sustainability of the operations of the project implementation support system, a budget framework shall be developed and adequate resources allocated to ensure an effective and sustainable functioning of the system. The sustainability of the system will also be ensured by preparing and adopting guidelines to incentivize staff/agencies on improved project management practices; as such, an improved incentive regimes for behavioral changes among staff and agencies involved in project implementation and M&E will be put in place.
Human Resource Development: The capacity of relevant staff in the Ministry of Planning and Territorial Development will be strengthened through training on project planning and management techniques, including areas such as accounting, audit, budget/financial management, procurement and database management - Integrated Financial Management Information System - IFMIS. Continuous learning and management of knowledge shall be encouraged by facilitating participation in sub/regional sector networks such as the procurement networks in Africa, which foster knowledge sharing from good practice cases. The sustainability of the project implementation support system shall be further improved by establishing succession planning mechanisms, to ensure that succession plans are established for every participating sector ministry.
The Project will recruit a consultants in the fields of project monitoring and evaluation, financial management, project accounting and procurement These consultants will work with the Project Implementation Unit and will assist the National Directorate of Public Investments (NDPI) in the implementation of the multiyear investment programme, and ensure the transfer of skills to the national counterparts.
The training envisaged under the project will enable the national staff to improve their project management skills through the updating of their knowledge, the exchange of experiences with consultants from other countries and the learning of techniques of project planning and management. The proposed training will be practical and well-focused and based on preliminary needs studies aimed at bridging the capacity gap identified in the elaboration, monitoring and evaluation of project and programmes as well as in the procurement of works, goods and services and in accounting and financial management.
Study trips, will be financed under the project to Brazil and Portugal due to language constraints as well as to major countries in the SADC region, to foster regional cooperation, in order to enable the staff of the Ministry of Planning learn from the experience of these countries in the specific areas of public investments, accounting and financial management as well as public procurement.
A national network hub shall be developed to coordinate inter-agency project implementation and monitoring and evaluation (M&E) activities of all participating ministries; this activity aims at ensuring that national and provincial agencies provide timely and accurate data on projects into the project implementation support system for improved programme planning and financial management. To address the challenge of the adherence of Ministries, Departments and Agencies (MDAs) to national and donor guidelines on schedules on expenditure reporting, the administrative, management and reporting structure of the MDAs will be developed and or strengthened.
Component II: Performance management strengthening:
The project will support government to establish guidelines for performance measurement in public investments and introduce key measures for performance management in the relevant departments and agencies. Selected departments and agencies will develop Key Performance Indicators and will be supported to introduce performance-based incentives and reward systems. They will also be supported to develop a results orientation framework through staff training, development of M &E systems and establishment of mechanisms to promote accountability for results. Project management tools and manuals for project management support in the key areas shall be developed under the project and train staff to use them. Also, to ensure regular and efficient updating project management information an information and communication network among MDAs for collecting data, processing and reporting on project management shall be developed by establishing a user-friendly web portal. Finally, to determine the impact of development projects already implemented and guide the design of programmed projects, sectoral and socio-economic impact studies will be conducted. The project will recruit short-term consultants to carry out the activities under this component. The work will enable the improvement of the project database of the National Directorate of Public Investment (NDPI) and the evaluation of the socio-economic impact of development projects in the multiyear investment programme of Angola.
Component III: Project management: Activities aimed at ensuring the effective implementation of the project will be carried out under this component. The activities consist particularly of the setting up of the Project Implementation Unit (PIU), the procurement of the services of international consultants and national counterparts as well as the procurement of office and computing equipment and a vehicle. The PIU will therefore be adequately equipped, using project funds, with the resources required for the efficient performing of its activities.
To build an integrated project implementation and coordination system at the National Department of Public Investments (NDPI), Ministry of Planning and Territorial Development
Angola has not fully recovered from the civil war that lasted over two decades. The war had profound social and economic impact and infrastructure vital for social development and economic growth, national institutions as well as an entire generation were affected. The resulting widespread poverty and the low institutional capacity of the state apparatus are a major constraint for a sustainable and rapid development of the country. The two major weaknesses hindering the country's development are
(i) a weak institutional framework, and
(ii) an acute lack of qualified human resources.
These capacity challenges affect not only the performance of the Bank Group's portfolio which is currently considered unsatisfactory but also the implementation of the entire Public Investment Project portfolio in the country. The current disbursement rate of the Bank's portfolio is 17.08 percent. The portfolio has a commitments-at-risk ratio of 45 percent and an average age of 4.5 years. The major causes of the poor portfolio performance are the usual systemic problems of
(i) poor borrower ownership,
(ii) low commitment to timely implementation of measures to improve the portfolio, and
(iii) weak institutional and implementation capacity. In addition, project implementation is constrained by poor/inadequate project conception, and language/communication problems.
Government recognises that in order to manage development effectively, they need to have stronger institutions including human resources with the right expertise. Consequently, the Government of Angola has requested technical and financial assistance from the Bank to strengthen the institutional capacity of the National Department of Public Investments as well as develop the competence of national staff in the management of public investment projects.
This project responds to an urgent need to strengthen national capacity and build institutions for sustainable development which is consistent with the Bank's Governance Strategy and the Higher Education Science and Technology Strategy, To echoe the urgency of this intervention, the President of Angola in April 2010 issued a Decree to the Ministry of Planning to ensure speedy reforms that will enhance the capacity of state institutions to deliver on their mandates. Bank financing of this project will support the Government of Angola to realize its overarching objective of promoting efficient and accountable governance, with emphasis on institutional strengthening and human capacity development. Improved institutional capacity will contribute to better economic growth and human development outcomes thereby enhancing the country's chances of meeting the Millennium Development Goals. The direct beneficiaries are the national institutions involved in implementing Public Investment Projects but the ultimate beficiaries are the citizens of Angola particularly the poor and marginalized whose lives will improve as a result of improved delivery capacity of national institutions. The Bank considered two options for addressing the institutional challenges. One option was to concentrate on the Divisions for Planning and Studies that exist in every Ministry. The second option adopted for this project is to have a broader view of institutional capacity building which will include the establishment of a Project Implementation Support Unit that will build capacity and coordinate Public Investment activities of the various Planning Divisions in the Ministries and Provinces.
Angola's recovery from the war has been remarkable. Propelled by increasing oil production and rising oil revenues, the Angolan economy has grown tremendously since 2002 and the macro-economic outlook is promising. Annual growth rate reached 24.7% in 2007 and inflation dropped to 11.7% in the same year from a high of 106% in 2002. However, this growth is yet to translate into poverty reduction and improved quality of live for the majority of Angolan citizens. Income inequality is rising and poverty is widespread with 68% of the population living below the poverty line. Primary school enrolment is estimated at 54%, maternal mortality is 1700 per 100000 live births, infant mortality is 134 per 1000 and about 35% of the country's population is undernourished.
Amidst the oil wealth, Angola may still struggle to meet the MDGs. Institutional weaknesses and capacity gaps in government agencies continue to hinder timely and effective implementation of government programmes. This project will improve capacity in selected state institutions and enhance government's ability to formulate and implement pro-poor policies, strategies and programmes including effective implementation of the country's Medium Term Development Plan (2009- 2013) and measures to reduce income inequality. The war had a considerable impact on the social fabric which requires capacity to design and implement targeted interventions to help poor people rebuild livelihoods and rediscover their voice in decision-making
BARBOSA Yolanda Arcelina de Oliveira - OSHD1