SUMMARY AND FURTHER ACTION POINTS - DPG MAIN – 16th SEPTEMBER 2011

1. IMF Assessment of the 2011/12 budget

  • Based on the IMF’s assessment of the GoT proposed budget tabled to Bunge in June, a number of issues have emerged which will be the basis for a discussion during a PSI mission, tentatively scheduled for 5-18 October pending GoT acceptance.

2. GBS update

  • The GBS group has had two Troika+ meetings with Minister Mkulo in June where issues of high-level anti-corruption dialogue, PAF 2011 progress, PER dialogue, CAG and the upcoming Annual National Policy Dialogue were discussed. Coordination with DPG Co-Chairs on relevant matters is taking place. Next GBS HoC scheduled for 5/9 and Troika+ for mid September.

3. MKUKUTA Monitoring Master Plan

  • Following the MMMP Consultative meeting on Friday 12/8, DPs have been requested to re-submit indicator comments provided back in February/March by DPs. The PMG will compile and analyse linkages between MKUKUTA II targets, FYDP and PAF 2011 in order to ensure a realistic and consistent monitoring framework. Compiled comments will be circulated to DPG for additional comments/views prior to submitting to the MKUKUTA Secretariat.

4. Division of Labour

  • The JAST WG will spearhead the scheduled assessment of the Dialogue Structure and the revision of the DoL as per Roadmap.
  • The revision of the DoL will be based on the 2009 agreement cornerstones:
  • DoL revision is conducted jointly with GoT at sector level and with Ministry of Finance.
  • DP leads should strive towards providing longer term leadership over 2-3 years.
  • Troika-systems of leadership should be phased out (except Health).
  • DPs strive towards a presence in 3 sectors as per EU Code of Conduct.
  • While the Division of Labour revision is being finalized GoT has requested that DPs do not change lead positions. Therefore:

a)DPs aiming to step down from lead positions should strive towards continuing the work.

b)Where Deputy Leads are available, these should ensure that work is not affected.

c)If none of these options are available, it is suggested that a fully competent Active member in an informal manner takes on a coordinating role on behalf of the Lead until the revised DoL has been agreed.

  • It was agreed to initiate the assessment of DP views of the Dialogue Structure and DoL wishes as soon as possible in order to facilitate a short and efficient review process.

5. DPG Policy Dialogue Priorities

  • DPG policy priority areas for engagement with Government in order to strengthen coherence and uniformity of DP voices include: ANPD, Anti-Corruption, Allowances, high-level dialogue (JCG/DCF/informal), national budget, business environment, Roadmap implementation, and Zanzibar dialogue.

6. Allowances

  • Current monitoring exercise to be completed while deliberations on how to extend and deepen the analysison DP trends, basket regulations, and key sectors is taking place. Focus on continuing to engage with GoT around MTPP remains a key priority. Clarification of eligible and ineligible allowances towards GoT and among DPs to be discussed in DPG once the monitoring exercise is complete, e.g. on basis of the presented World Bank memo of July 2011.

7. AoB

  • USG-Tanzania Partnership for Growth –US Government engaging with GoT (POPC) in developing an US agency-wide engagement around economic growth in Tanzania under the leadership of the US National Security Council. Main areas of concern: Energy, Rural Roads and Land Tenure.
  • DP Introduction Course – MoF and the DPG Secretariat will be arranging a 1-day introduction course for all new DP staff towards mid September.
  • Upcoming missions/HQ visits: No visits or missions have been scheduled.

8. The next DPG Main meeting will be onTuesday 6 September 2011

9. To do list:

Action / In charge / Timing
Discuss and agree new ANPD preparation process and structure with deputy PS Likwelile / DPG + GBS chairs / Pending D-PS
Arrange for a high level discussion with GoT on Road Map, 5 years Plan and MKUKUTA Implementation Plan, letter on top ups / DPG co-chairs / Sept.
Implementing principles stated in letter on salary top-ups and allowances:
a)Response from POPSM
b)Monitoring matrix for DP progress monitoring / WB/PSRP
DPG secret./Consultant / September
September
Comments on MMMP / PMG / August
Dialogue Structure and DoL / JAST WG/DPG Secr / Aug-Sept.

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MINUTES OF DPG MAIN MEETING

16th SEPTEMBER 2011

EMBASSY OF SWEDEN/FINLAND

  1. Adoption of Agenda

DPG Co-Chair Alberic Kacou opened the meeting. The minutes from the DPG June meeting were approved and the agenda for the meeting adopted.

Welcome to newcomers: Switzerland HoC Ms. Geraldine Zeuner and KFW CD Mr. Wolfgang Solzbacher.

Members were reminded that the DPG Main is intended as a forum for Heads of Cooperation and Agencies. As such, HoC/As should strive to participate and send alternates when prevented from attending that are fully aware of the agenda and discussion points.

  1. Matters Arising
  1. IMF assessment of 2011/12 Budget

IMF presented the main preliminary assessment points of the national budget presented to Parliament in June. It is expected that a number of issues emerge which will be subject to further assessment during an upcoming IMF PSI mission tentatively scheduled for 5-18 October pending GoT acceptance.

It was raised that while the IMF is yet to receive the final figures and have sound technical discussions with GoT on some numbers, the overall preliminary assessment is that the budget is optimistic and potentially challenges key elements of the PSI program as it does not seem to commence on the fiscal consolidation process agreed in May with the IMF Board. Further clarification will be pursued during the scheduled PSI mission following which an update will be provided to the DPG.

  1. GBS update

The GBS Chair informed that the GBS group has had two Troika+ meetings with Minister Mkulo in June where strong GoT leadership had been observed. Issues of high-level dialogue on anti-corruption were discussed together with the need to update the joint anti-corruption monitoring matrix and EPA Action Plan. Principles on strengthening the PAF were discussed and the key concerns regarding the upcoming Annual National Policy Dialogue were raised. Coordination with DPG Co-Chairs on relevant matters is taking place. Next GBS HoC meeting is scheduled for 5/9 and Troika+ for mid September.

  1. MKUKUTA Monitoring Master Plan

The Poverty Monitoring Group Lead summarised the outcome of the Friday 12/8 consultative meeting on the MKUKUTA Monitoring Master Plan (MMMP) organised with the participation of other national stakeholders.

It was raised that in comparison to the zero draft MMMP version circulated for comments in February and March, the current version has a much stronger institutional framework which seeks to improve data collection, analysis and clearer definitions of roles and institutions involved. It was stressed to GoT though, that access to the Implementation Guide would be key to assess to what extend the M&E framework is consistent with implementation arrangements. Furthermore, it was clear that most DP specific comments provide in February/March to the MMMP indicators had not been taken onboard. GoT have indicated that this was unintentional and requested for DPs to share consolidated comments as soon as possible.

It was raised and agreed that the PMG comments should mainly seek consistency with existing M&E frameworks such as the PAF, FYDP, etc. Therefore, the PMG should circulate the consolidated comments once completed to the wider DPG for final comments before presenting them to MoF/MKUKUTA-Secretariat.

It was clarified that the MMMP only covers Tanzania Mainland and not Zanzibar; a parallel initiative of developing an M&E plan is currently being spearheaded in Zanzibar.

  1. Division of Labour

The approved Roadmap to improve mutual trust and development cooperation was briefly presented. Two activities under the Roadmap address the need to re-assess the Dialogue Structure and review the Division of Labour under the leadership of the JAST working group.

It was proposed and agreed that in order to reduce process-oriented discussions with GoT; the revision of the DoL should be based on the cornerstones of the 2009 DoL agreement:

  • The DoL revision is approached in joint manner where changes in sector compositions and DP leadership are agreed with GoT (sector level and with Ministry of Finance).
  • DP leads should strive towards providing longer term leadership over 2-3 years.
  • Troika-systems of leadership should be phased out (except Health).
  • DPs strive towards a presence in 3 sectors as per EU Code of Conduct.

Based on the discussions in June it was agreed that in terms of transition between DP leads, the following principles should be applied:

  • DPs aiming to step down from lead positions should strive towards continuing the work.
  • Where Deputy Leads are available, these should ensure that work is not affected.
  • If none of these options are available, it is suggested that a fully competent Active member in an informal manner takes on a coordinating role on behalf of the Lead until the revised DoL has been agreed.

It was finally agreed to initiate the assessment of DP views of the Dialogue Structure and DoL wishes as soon as possible.

  1. DPG priority areas for 2011/12

Based on discussions in Mtwara and DPG June, a number of priority areas for engagement with Government were suggested in order to strengthen coherence and uniformity of DP voices. These include: ANPD, Anti-Corruption, Allowances, high-level dialogue (JCG/DCF/informal), Roadmap implementation, and Zanzibar dialogue.

In order to strengthen substantive discussions in the DPG, it was furthermore suggested to include the National Budget and the Business Environment.

  1. Allowances

Following the DPG discussions on allowances which resulted in an agreement around a number of principles in March, a short monitoring exercise has been carried out focusing on DP financing of allowances, salary top-ups and salaries for civil servants, as well as financing of parallel or integrated Project Implementation Units.

It was agreed that while the current monitoring exercise does reveal certain trends (types of allowances, PIUs etc) more efforts would be needed in ensuring consistency and quality of all submissions. It was proposed that a short-term consultant should be tasked to fully map trends for each DP as well as the various basket regulations while also exploring potential inconsistencies (e.g. discontinuing sitting allowances while some baskets allow this practice) and sectors of high concern (Health and HIV/AIDS).

Although caution was expressed as to how far DPs are expecting to pursue the allowance-agenda, it was suggested that once the mapping exercise had been completed, the DPG should assess whether the development of a clearer description of types of eligible and ineligible allowances for projects and programs would be useful for DP internal use as well as towards GoT. Point of reference could be taken in the World Bank memo recently sent to GoT.

Simultaneously, the crucial importance of continuing dialogue and engagement of the Public Sector Reform Program in developing a Medium Term Pay Policy and action plan was highlighted

While DPs who have so far not submitted the monitoring matrix are invited to do so, it was recommended by the Chair that further deliberation on the concrete steps forward should be made after the meeting. Further information and clarification will be share with the DPG by the Co-Chairs.

AOB

a)USG-Tanzania Partnership for Growth

The US Government is in addition to similar initiatives in Ghana, El Salvador and the Philippines engaging with GoT (mainly POPC) in developing an US agency-wide engagement around economic growth in Tanzania under the leadership of the US National Security Council. While a final draft of the identification and selection of growth constraints is being finalised, further analysis and coordination with other DPs is envisaged around the three main areas of concern: Energy, Rural Roads and Land Tenure.

b)DP Introduction Course

MoF and the DPG Secretariat will be arranging a 1-day introduction course for all new DP staff towards mid September.

c)Upcoming missions/HQ visits:

No visits or missions have been scheduled.

Next Meeting

The next DPG Main meeting will take place on Tuesday 6 September 2011from 10-12.

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