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Government of Tanzania
GoT
Danish Ministry of Foreign Affairs
Danida
Programme Document
Environmental Sector Programme Support
Tanzania
Ref. No. 104.Tanzania.1.MIKA.29 January 2007
ESPS Tanzania
i
COVER PAGE
Country: Tanzania
Title: Environmental Sector Programme Support
Cooperating Agencies Vice President‟s Office (VPO), Division of Environment
(DoE)
Prime Minister‟s Office, Regional Administration and
Local Government (PMO-RALG)
Ministry of Natural Resources and Tourism (MNRT),
Forestry and Beekeeping Division (FBD)
Duration: Five Years
Starting Date: 1 July 2007
Overall Budget: DKK 180 million
Danida‟s Environment Sector Programme Support (ESPS) from July 2007 to June
2012 has following development objective: Sustainable management of Tanzania‟s
natural resources and environment contributing to growth and income poverty
reduction, to social well being, and to improved governance and accountability. ESPS
will comprise the following components:
1. Environmental Management Act Implementation Support Programme (EISP);
2. Urban Development and Environmental Management Framework (UDEM
Framework);
3. Participatory Forest Management Programme (PFM Programme).
The ESPS will take advantage of the momentum gained with the successful
mainstreaming of environment in the Government of Tanzania‟s (GoT) National
Strategy for Growth and Reduction of Poverty (MKUKUTA, and with the passing of
the Environmental Management Act (EMA). ESPS will balance interventions
between natural resources management and urban environmental management, will
link policy & strategy with implementation in the field, and will consolidate and
sustain achievements made so far.
Danida‟s assistance will contribute substantially to launching and implementing the
EISP and the UDEM Framework and further developing the PFM Programme. ESPS
will include funding for harmonisation and alignment, incl. Danida‟s lead role in the
sector, and for strategic support to Civil Society.
The management of the EMA, UDEM and PFM components is fully integrated into
the GoT institutional structures. The Danida and other Development Partners (DP)
funds for EISP, UDEM and PFM (at a later stage) will be routed through basket fund
arrangements, and management will be informed by Memorandum of Understandings
(MoUs), to be developed in the inception phase.
Signatures
For Danida
For Government of Tanzania
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iii
List of Abbreviations
ALAT Association of Local Authorities in Tanzania
CAG Controller and Audit General
CBF Common Basket Fund
CBFM Community Based Forest Management
CBG Capacity Building Grant
CBO Community Based Organisations
CCM Chama Cha Mapinduci
CDG Common Development Grant
CEO Chief Executive Officer
CSO Civil Society Organisation
CPAR Country Procurement Assessment Report
CSRP Civil Service Reform Programme
Danida Danish International Development Assistance
DfID Department for International Development (UK)
DIMS Division of Information Management Systems
DKK Danish Kroner
DLG Division of Local Government
DLS Division of Legal Services
DoE Division of Environment
DP Development Partners
DPG Development Partner Group
DPG-E DP Group-Environment and Natural Resources
DPP Division of Policy and Planning
DSC Division of Sector Coordination
D-by-D Decentralisation by Devolution
EAC East African Community
EC European Commission
EIA Environmental Impact Assessment
EIU Economist Intelligence Unit
EISP Implementation Support Programme
EMA Environmental Management Act
EMIS Environmental Management Information Systems
EPM Environmental Planning and Management
ESPS Environmental Sector Programme Support
EWG Environment Working Group
FAO Food and Agriculture Organisation
FBD The Forestry and Beekeeping Division
FCS Foundation for Civil Society
FY Financial Year
GDP Gross Development Product
GoT Government of Tanzania
GTZ German Technical Cooperation
HBS Household Budget Survey
HIPC Heavily Indebted Poor Countries
HIV/AIDS Human Immune-Deficiency Virus / Acquired Immune-Deficiency
Syndrome
HLG Higher-level Local Governments
HSD Human Settlement Division
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ICDP International Conference for Population Development
IDA International Development Agency
IFMS Integrated Financial Management System
IFP Indicative Planning Figure
ILO International Labour Organisation
IMF International Monetary Fund
IMTC Inter-Ministerial Technical Committee
INGO International Non-Government Organisation
JAS Joint Assistance Strategy
JAST Joint Assistance Strategy, Tanzania
JFM Joint Forest Management
LDS Land Development Services
LFA Logical Framework Approach
LGA Local Government Authority
LGCDG Local Government Capital Development Grant
LGRP Local Government Reform Programme
LGSP Local Government Support Programme (WB)
LLG Lower-Level Government
LoI Letter of Intent
LVEMP Lake Victoria Environmental Management Project
M&E Monitoring & Evaluation
MCDGC Ministry of Community Development, Gender and Children
MDA Ministry, Departments and Agencies
MDGs Millennium Development Goals
MFA Ministry of Foreign Affairs
MIS Management Information System
MLHHSD Ministry of Lands, Housing and Human Settlement Development
MKUKUTA Swahili acronym for: National Strategy for Growth and Reduction of
Poverty
MMS MKUKUTA Monitoring Systems
MNRT Ministry of Natural Resources and Tourism
MoF Ministry of Finance
MoU Memorandum of Understanding
MoW Ministry of Water
MPEE Ministry of Planning, Economy and Empowerment
MSD Mapping and Surveys Division
MTEF Medium Term Expenditure Framework
MTP Medium Term Plan
MTRPS Medium-Term Pay Reform Strategy
NAPA National Adaptation Programme of Action
NEAC National Environmental Advisory Committee
NEAP National Environmental Action Plan
NEMC National Environment Management Council
NEP National Environmental Policy
NFP National Forest Programme
NGO Non Governmental Organisation
Norad The Norwegian Agency for Development Cooperation
NPAC National Programme Advisory committee
NPRS National Poverty Reduction Strategy
NRM Natural Resources Management
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NSGD National Strategy for Gender Development
NSGRP National Strategy for Growth and Reduction of Poverty
NSoR National State of Environment Report
NWWG National Wetlands Working Group
O&M Operation & Maintenance
O&OD Opportunities & Obstacles to Development
OC Other Charges
PBG Plan and Budget Guidelines
PE Personnel Emoluments
PEFAR Public Expenditure and Financial Accountability Review
PER Public Expenditure Review of Environment
PHDR Poverty and Human Development Report
PFM Participatory Forest Management
PFMRP Public Financial Management Programme
PMO-RALG Prime Minister‟s Office, Regional Administrations and Local
Governments
PMS Poverty Management System
PO-PSM President‟s Office, Public Service Management
PPRA Public Procurement Regulatory Authority
PRGF Poverty Reduction and Growth Facility
PRS Poverty Reduction Strategy
PS Permanent Secretary
PSI Policy Support Instrument
PSRP Public Service Reform Programme
RDE Royal Danish Embassy
RS Regional Secretariat
SADC Southern Africa Development Community
SASE Selective Accelerated Salary Enhancement
SBAS Strategic Budget Allocation System
SEA Strategic Environmental Assessment
Sida Swedish International Development Assistance
SIMMORS Sustainable and Integrated Management of the Malagarasi-Muyovosi
Ramsar Site
SoER State of the Environment Report
SP Strategic Plan
SUALDWC Strategy for Urgent Action on Land Degradation and Water
Catchments
SUDP Strategic Urban Development Plan
SWAp Sector Wide Approach
SWM Sustainable Wetlands Management
TA Technical Assistance
TACAIDS Tanzania Commission for AIDS
TAS Technical Assistance Strategy
TASAF Tanzania Social Action Fund
TFCMP Tanzanian Forest Conservation and Management Programme
TFS Tanzania Forest Services
TI Transparency International
ToR Terms of Reference
ToT Training of Trainers
TRA Tanzania Revenue Authority
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TZS Tanzanian Shilling
UCLAS University College of Lands and Architectural Studies, Dar es Salaam
UDEM Urban Development and Environmental Management
UDEMG UDEM-Capital Grant
UDMP Urban Development Management Policy
UEM Urban Environmental Management
UN United Nations
UNDP United Nations Development Programme
UN-Habitat United Nations Habitat
UNIDO United Nations Industrial Development Organisation
USD United States Dollars
VPO Vice President‟s Office
WB World Bank
WD-WU Wildlife Division-Wetlands Unit
WG Working Group
WMA Wildlife Management Areas
WWF Worldwide Fund for Nature
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EXECUTIVE SUMMARY
Background
Danida has provided support to the environment sector since the 1980, which
intensified in the late 1990ies. The main elements of the current support are concerned
with Urban Environmental Management (UEM), Participatory Forest Management
(PFM), and Sustainable Wetlands Management (SWM). A number of reviews of the
current support were conducted during 2005 to feed into the preparation of Danida‟s
continued support to the environment sector. A Concept Note was prepared in January
2006 that outlined the intended scope for a new programme. Following discussions
with the Government of Tanzania (GoT) and in Danida internally it was agreed that
Danida‟s Environment Sector Programme Support (ESPS) from July 2007 to June
2012 should comprise the following components:
Environmental Management Act Implementation Support Programme (EMA-
ISP);
Urban Development and Environmental Management Framework (UDEM
Framework);
Participatory Forest Management Programme (PFM Programme).
The EMA-ISP is a new Component supporting the implementation of the
Environment Management Act, 2004. The UDEM Component replaces the project-
based support to selected urban centres with support that is fed into GoT‟s new
UDEM Framework. The PFM Component is a continuation of the existing component
that has been extended to June 2009 within the current budget frame, but will receive
additional funding for the remaining programme period under the ESPS. It was
decided not to include the support to SWM in the ESPS, but to let it continue on the
basis of the already agreed format. The SWM Component has been extended till June
2011 within the agreed budget frame.
GoT has since the early 1990s embarked on a number of reform programmes. These
gained momentum during the second half of the 1990s and has since year 2000 been
guided by the poverty reduction strategies. The key reforms are: Public Financial
Management Reform; Legal Sector Reform; Public Service Reform; Civil Service
Reform; and Local Government Reform.
It became apparent that local government – a sizable segment of the public service –
needed separate attention. The GoT and its DPs developed the Local Government
Reform Agenda 1996-2000. Subsequently in 1998, GoT published its Policy Paper on
Local Government Reform that was termed „Decentralisation by Devolution‟ (D-by-
D). It has been recognised that D-by-D requires a fundamental change in the way
government carries out its business, that it has implications for all ministries, and
requires harmonisation of national policies and major reforms.
A new Local Government Authority (LGA) formula-based recurrent grant system was
introduced beginning from FY 2004-05 and followed by a new block development
grant system, the Local Government Capital Development Grant (LGCDG). Each
LGA is also allocated a discretionary capacity building grant (CBG). The LGCDG
and CBG are provided on an annual basis. The LGCDG and CBG are only transferred
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to LGAs that fulfil a set of minimum conditions. The yearly LGCDG will be adjusted
based on an assessment of the LGA‟s performance of its functions. The LGCDG
annual allocation will be adjusted based on the performance either upwards or
downwards.
From 2005, the national development agenda is stated in: 1) the Tanzania
Development Vision 2025; and 2) the National Strategy for Growth and Reduction of
Poverty (NSGRP – MKUKUTA, the Swahili acronym). The MKUKUTA aims at
poverty reduction through three broad outcomes, which all link to the environment: 1)
Growth and reduction of income poverty; 2) Improved quality of life and social well
being; and 3) Good governance and accountability. MKUKUTA emphasises
mainstreaming of environment and poverty-environment linkages into all sectors. The
MKUKUTA acknowledges that the link between poverty and environment has
relevance in each of the three outcomes: 1) growth and reduction of poverty mentions
improvement in access and ability to use productive assets such as natural resources;
2) quality of life and social wellbeing refer to environmental protection and
sustainable use of natural resources; and 3) governance and accountability mentions
the transparent and accountable use of natural resources.
In spite of stable GDP growth for several years in Tanzania (averaging about 6.8%
during the last five years), the „basic needs poverty‟ only decreased from 38.6 to
35.7% from 1991/92 to 2000/01. The WB estimates that Tanzania needs a growth rate
at around 6% per year to half poverty by 2015. The aim to halve poverty by 2010 will
require GDP annual growth rates in the range of 8%. However, despite a pick-up in
growth, Tanzania remains a very poor country even by the standards of Sub-Saharan
Africa.
Since 2001, the annual national average population increase is estimated at about 2%
and the urban population in the range of 6%. With these growth rates, the urban
population will increase from around 8.0 million in 2001 to 13.4 million in 2010 and
in 2010 constitute 32% of the total population and the rural population from 26.6
million in 2001 to 27.9 million in 2010 and in 2010 constitute 68% of the total
population.
Although considerable, the contribution from natural resources to Tanzania‟s
economic growth and poverty reduction is largely unacknowledged. It is generally
difficult to predict the growth potential of the natural resources, as the knowledge
about the abundance, value, and current exploitation is limited. Although natural
resources are fundamental to the economy and rural and urban peoples‟ livelihood,
the development potential is often underestimated. This underestimation is partly
caused by missing market mechanisms, including pricing below the market values.
The contributions to Tanzania‟s development from natural resources could be larger
and benefit more people if natural resources were managed in a more sustainable and
equitable manner, building on principles of good governance. Though policies and the
legal framework is largely in place, there is a wide gap between policy and planning,
and action on the ground.
The increasing urbanisation places correspondingly increasing strains on urban-rural
relations: 1) as the supply from the rural to the urban areas of food, energy,
construction materials, and natural resources inputs to manufacturing increase; and 2)
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as pollution levels increase as a consequence of having expanded urban economic and
social activities, which in turn also have negative impacts on the environment outside
the urban areas. The high rate of urbanisation constitutes particular environmental
challenges concerned with problems from industrial pollution and health hazards due
to poor sanitation, stormwater drainage and solid waste management.
With the passing of the Environmental Management Act in 2004 (which became
effective in July 2005) and other legal and policy provisions, there is a good
framework for environmental planning, management, and enforcement. Since the
enactment of EMA in 2005, progress has been slow in establishing environment
sections in sector ministries and there has been limited progress in harmonising
policies, legislation and regulations except for a few MDAs The challenge is to make
use of the environmental management framework in order to attain substantial and
visible effects on the state of environment. This will require substantial capacity
building, institutional development, and development of inter-institutional relations.
The water and energy crisis in early 2006 underscored the need for macro level
environmental management and coordination between Ministries, Departments and
Agencies (MDAs). In response to the crisis, GoT adopted the Strategy for Urgent
Action on Land Degradation and Water Catchments.
The Minster of State for Environment within the Vice President‟s Office (VPO) is
overall responsible for matters relating to environment. The two core institutions for
environmental management in Tanzania under the auspices of VPO are: Department
of Environment (DoE) responsible for environmental policies, coordination, state of
the environment reports and environmental action plans; and the National
Environmental Management Council (NEMC) responsible for enforcement,
compliance, review of environmental impact assessments, and research and studies.
In accordance with EMA‟s stipulations, each sector ministry shall establish an
environmental section, which shall ensure compliance with the environmental
management requirements. Regional Secretariats shall be responsible for coordination
of all advice on environmental management in their respective regions and liaise with
DoE and NEMC on the implementation and enforcement of EMA. Each LGA shall
establish an environment management committee and designate an environmental
management officer. The Prime Minister‟s Office, Regional Administration and Local
Government (PMO-RALG) provides the interface between LGAs and sector
ministries via the Regional Secretariats.
The Environment Working Group (EWG) is the government-led, national level forum
for policy and strategy discussions and coordination of GoT and development partner
(DP) interventions. The EWG acts as the critical link between the environment sector
and national policy, planning and monitoring processes – including representation of
the environment sector in MKUKUTA‟s three cluster groups.
The active development partners for environment form a group referred to as DP
Group-Environment and Natural Resources (DPG-E). Danida currently holds the
chairmanship for the DPG-E. The DPG-E has elaborated an overview on how DPs
distribute their environmental assistance to regions and districts. All regions receive
some assistance and 94 out of 120 districts receive assistance. The overall picture is
that development assistance is very unevenly distributed nationwide among the
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regions/districts. Almost all DPs support the green environmental sub-sector; the blue
sub-sector is primarily supported the multilateral DPs (WB and EC); and UN Habitat
and Denmark largely cover the brown sub-sector.
The civil society‟s roles in environment and natural resources management are
articulated in EMA, in many government policies, and in public sector reforms. The
environment sector civil society in Tanzania is developing, but is in the present
situation relatively weak in terms of resources and capacity. The civil society has a
huge potential role in service delivery and advocacy in the environment sector. The
private sector is primarily involved in construction of investment projects through
competitive bidding, but could also be involved in public-private partnerships
concerned with provision of public services and maintenance of public infrastructure.
GoT has formulated the Joint Assistance Strategy (JAS) for Tanzania which links up
to the Paris Declaration on Aid Effectiveness and the MKUKUTA. GoT will work
towards a more effective division of labour, cooperation and coordination among and
between MDAs, Regions and LGAs. It will do so by taking into account the principle
of subsidiarity.
Objectives
The overall ESPS development objective is:
Sustainable management of Tanzania‟s natural resources and environment
contributing to growth and income poverty reduction, to social wellbeing, and to
improved governance and accountability.
Objectives of the EISP
The development objective of the EISP is:
“State of Environment in Tanzania improved through implementation of EMA,
contributing to growth and income poverty reduction, social well being, and improved
governance and accountability”
The immediate objectives of the EISP are:
1) Coordination of environmental management in Tanzania improved; and
2) Effective implementation of environmental mandates.
Objectives of the UDEM
The development objective of the UDEM is:
Improved living conditions of the urban communities in Tanzania by facilitating
decentralised implementation and monitoring of sustainable urban development and
environmental management in the Local Government Authorities sector.
The immediate objectives of the UDEM are:
1) To provide coordinated financial and technical assistance to relevant LGA sector
institutions at the national and Regional levels to create an enabling atmosphere
for implementation and monitoring of urban development and environmental
management activities at the local levels through a supportive legal and policy
framework;
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2) To provide nationally compatible assistance for the effective management of the
supply and demand sides of capacity building of relevant stakeholders at both
national and urban local government levels to facilitate the implementation of
local level UDEM initiatives;
3) To provide financing to national and local level LGA sector institutions to
operationalise a UDEM supportive national Local Government sector and enable
LGAs to make investments in improved urban development and environmental
management through nationally compatible intergovernmental transfers.
Objectives of the PFM
The development objective is:
Improved and sustainable management of Tanzania‟s diverse forests and woodlands
resources contributing to the maintenance and development of sustainable livelihoods
especially among the poor rural communities.
The immediate objectives are:
1) A national framework for PFM under implementation
2) PFM developed and operational in selected districts in four regions.
Outputs
ESIP
The outputs that will be achieved by the EISP are summarised below:
Focus area Outputs related to immediate objective 1 Environment
Policy and
Planning
1.1.1 EMA associated regulations, standards, guidelines and manuals prepared
and disseminated to implementing institutions
1.1.2 National Environment Advisory Committee established;
1.1.3 National Environment Fund established
Environment
Assessment
1.2.1 EIA and SEA experts registered, EIAs and Strategic Environmental
Assessments (SEAs) reviewed and acted upon; and Environmental audits
conducted
Environment
Reporting,
monitoring,
enforcement
1.3.1 Central Environmental Information System established and State of the
Environment Reports prepared and disseminated;
1.3.2 Environmental inspectors, Analysts, and Reference Analysts
designated/appointed;
1.3.3 Environment Appeals Tribunal established and functioning.
Environment
Information and
awareness
1.4.1 Awareness of EMA and Multilateral Environmental Agreements amongst
all stakeholders increased.
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Focus area Outputs related to immediate objective 2 Environment
Policy and
Planning
2.1.1 EMA mandates specified and internalised within implementing partners;
2.1.2 Environment sections and committees established (reviewed, where they
exists) in Ministries, Departments, Agencies (MDAs) and Loal Government
Authorities (LGAs)
2.1.3 Sector specific and LGA environmental action plans/strategies developed,
implemented and monitored;
2.1.4 Sector legislation, policies, strategies, plans/strategies reviewed and
harmonised, and implemented where necessary.
Environment
Assessment
2.2.1 Sector specific EIA guidelines produced (reviewed if in place) and
implemented for approval;
2.2.2 Compliance inspections conducted;
2.2.3 SEAs of legislation, policies, strategies, plans and programmes conducted
and submitted for approval
Environment
Reporting,
monitoring,
enforcement
2.3.1 Sector and LGA (consolidated report from PMO-RALG) State of
Environment reporting system established; and reports produced and
disseminated;
Environment
Information and
awareness
2.4.1 Information on EMA and sector specific implications disseminated to all
stakeholders in respective sectors;
2.4.2 Information on EMA disseminated to regions, LGAs, wards, mtaas and
kitongojis.
UDEM
The outputs that will be achieved by the UDEM are summarised below:
Component/ sub
component
Outputs
National Level Component
Sub-component - National
Policy and Legal Framework
Output 1: Framework consolidated through – insertion of the
framework in Medium Term Expenditure Frameworks (MTEFs) & pre
studies for the Urban Development Management Policy (UDMP)
Output 2: Existing laws, guidelines and strategies harmonised
Output 3: Urban Development Management Policy (UDMP)
developed
Output 4: sustainable long term responsiveness to LGAs operational
National Level Component
Sub-component - National
Level Capacity Building
Output 1: Capacity of national level institutions to serve LGAs for
UDEM enhanced
Output 2: Platform to coordinate and enhance all national efforts
strengthened and operational
LGA Level Capacity
Building Component
Output 1: Capacity Building Grant (CBG) for UDEM established and
operational
Output 2: Improved implementation of UDEM activities in LGAs‟
through increased capacity for using the Environmental Planning and
Management (EPM) process
UDEM Funding Framework
Output 1: National level Common Basket Fund (CBF) established and
operational
Output 2: UDEM Capital Development Grant (CDG) established and
operational
Output 3: Utilisation of other sources of funds for UDEM activities
promoted
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PFM
The outputs of the PFM, related to the immediate objectives, are summarised in the
table below:
# Output 1.1 A national framework for PFM implementation developed and institutionalised.
1.2 Applied research and development to facilitate PFM supported.
1.3 National PFM monitoring system developed and dovetailed to Poverty Monitoring Master
Plan, National Forest Programme (NFP) and Local Government Reform Programme (LGRP).
1.4 Manual of PFM „best practices based on simple and practical handbooks developed and
published.
2.1 Local Government Authority human resources capacity and financial ability to support PFM
enhanced.
2.2 Village, sub-village and user group committees promoted and strengthened to support
implementation of PFM.
2.3 PFM plans in selected districts developed and under implementation.
2.4 Private forestry initiatives enhanced.
Cross cutting issues The MDAs and LGAs are responsible for environment and gender mainstreaming, for
initiating efforts to respond to HIV/AIDS, and for good governance in their
institutions. The MDAs and LGAs have committees and staff dealing specifically
with environment, gender and HIV/AIDS interventions, which are incorporated in
their Strategic Plan and MTEF and which are subject to reporting and monitoring. If
the need for corrective measures, e.g. in the case of an EMA activity, arises, the
relevant focal points or sections will resolve what measures should be applied.
Implementation of SUALDWC will be a test of how good governance is as there will
be a need to balance environment requirements with human welfare/rights and
adherence to environmental laws as well as resettlement laws.
Sustainability and replicability issues
The implementation of EMA, UDEM and PFM will take place within existing
government structures and mandates, which will enhance sustainability significantly.
Sustainability within the EMA component will furthermore be promoted by ensuring
that environment sections in MDAs are properly established, staffed, equipped, and
that environmental management functions are well conceived – and not least that they
continue to be well undertaken. There will be considerable scope for replication, as
the EMA implementation will be undertaken in phases and batches. When all MDAs
and LGAs have implemented the initial requirements, there will be a need for
continuing refinements of EMA implementation.
Regarding the local level activities, sustainability will be promoted by facilitating that
investment projects are properly conceived, relevant and well designed. Emphasis will
be placed on LGAs undertaking their own internal appraisal and approval procedures.
Sustainability will, furthermore, be promoted by developing and sustaining LGAs‟
corporate competence in urban planning, development and environmental
management.
Regarding the national level activities within the UDEM component, sustainability
will be enhanced by developing a comprehensive long-term UDP that provides
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effective directions for urbanisation at national and local levels; and integrating
development interventions into GoT‟s planning, budgeting, accounting and reporting
systems.
There will be considerable scope for replication, as more LGA‟s qualify and as the
need for investment in urban LGAs is enormous. Best practice cases will continue to
be documented based on the positive experiences gained that will help inform
procedures and guidelines for new eligible LGAs wanting to access the UDEM grant.
The UDEM Framework should, according to Danida, be seen as a medium term
intervention, addressing the urban environmental challenges, which are not fully
accommodated in the current policy, capacity building, and investment frameworks.
The grants may at a later stage be fully integrated in the LGCDG and LGCBG. When
the policy is in place and institutional mandates for servicing LGAs in this field are
fulfilled, the need for a specific earmarked national level support may dissolve.
Sustainability within the PFM component will be promoted by use of participatory
approaches that will increase the effectiveness of collective action and that respond to
the core interests of the communities in the vicinity of forest areas. Sustainability is
further enhanced by improved regulation from the public sector. Replicability is
enhanced by the emerging sector wide approaches which will allow unimpeded
transfer of good demonstrations throughout the country.
Management arrangements
GoT-DP MoUs regarding EISP, UDEM Framework, and NFP SWAp basket will be
developed, and they will include detailed specifications on management, on planning
and budgeting, on fund transfers, on procurement, on reporting and accounting, and
on auditing. This section is thus giving a preliminary presentation of the
implementation modalities. The table summarises the implementation arrangements,
which are further described in the specific component descriptions.
Implementation Arrangements ESPS components Roles EMA UDEM PFM
Executing &
Coordinating
institution
VPO-DoE & NEMC PMO-RALG FBD, MNRT
Cooperating
Institutions
MDAs (selected) incl.
PMO-RALG
MLHSSD, VPO-NEMC,
LGAs
PMO-RALG, LGAs
Steering
Committee(s)
EWG UDEM Steering
Committee (SC), LGCDG
Steering Committee and
Technical Committee
PFM working group under
SWAp Steering Committee)
Funding
mechanism
Basket Basket Continued component. After
2009 – basket
Funding
channel
Satellite account in
treasury, release based
on EWG approved
work plans and budgets
Satellite account in
treasury, release based on
SC approved work plans
and budgets (including for
the grants)
Disbursed to FBD and PMO-
RALG based on request, on
a grant basis. Manual
available
Planning
mechanism
Use of GoT planning
mechanism. Extracted
Use of GoT planning
mechanism. Extracted and
Use of GoT planning
mechanism. Extracted and
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Roles EMA UDEM PFM
and aggregated work
plans and budgets,
based on respective
institutions‟ related
activities and budgets,
produced by VPO-DoE.
First year allowing
activities outside MTEF
aggregated work plans and
budgets, based on
respective institutions‟
related activities and
budgets, produced by
PMO-RALG
Use of GoT planning
mechanism– integration in
LGA development plans
aggregated work plans and
budgets, based on respective
institutions‟ related activities
and budgets, produced by
FBD.
Use of GoT planning
mechanism at local level as
well - integration in LGA
development plans
Reporting
mechanism
Use of GoT reporting
mechanism. Extracted
aggregated physical and
financial report, based
on respective
institutions reports,
produced by VPO-DoE
Use of GoT reporting
mechanism. Extracted
aggregated physical and
financial report, based on
respective institutions
reports, produced by PMO-
RALG.
PMO-RALG also extracts
and aggregates LGA
reporting
Use of GoT reporting
mechanism. Extracted
aggregated physical and
financial report, based on
respective institutions
reports, produced by FBD
Specific mechanism for
reporting from local level to
PFM working group.
TA Procured by respective
institutions using GoT
rules. First 1½ year
short term continous
TA procured by RDE,
from Programme
Management budget
Procured by respective
institutions using GoT
rules. Danida Technical
Adviser first 2 years
Services procured by FBD
using GoT rules, goods
procured through Crown
Agent, Danida Technical and
Financial Adviser - all until
2009. After 2009 – all
procurement by GoT
Transfer and channelling of funds
The Danida and other DP funds for EISP, UDEM and later on the PFM will be routed
through basket fund arrangements via the Ministry of Finance (MoF) Exchequer
System thus enabling the transfers to be recorded in the Integrated Financial
Management System. The DPs will indicate their funding commitments well in
advance to ensure that budget preparation can take place based on predictable DP
contributions to allow MTEF budget ceilings to be realistically set.
For EISP and UDEM Framework each implementing institution will identify the
relevant activities to be included in their annual plans and budgets in their MTEF. The
executing institution, meaning VPO-DoE and PMO-RALG, will prepare annual
aggregated budgets and work plans, based on the implementing institutions annual
plans and budgets. The aggregated plans and budgets will thus constitute extracts of
the MTEF, and will be submitted to the Steering Committees for endorsement. After
the flow of funds and the decision making, accounting, financial reporting and
auditing mechanisms, there will follow the GoT standards.
The planning and budgeting in the PFM component is already expressed in manuals,
incl. a recently approved manual for district PFM funding, developed by MoF, PMO-
RALG, and FBD, and building upon the existing GoT system.
Budget
The overall budget for the Danida contribution is shown below:
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xvi
2007-08 2008-09 2009-10 2010-11 2011-12 Total
1 EMA Component 8 6.9 6.7 6.7 6.7 35
2 UDEM
Component
20 20 20 20 20 100
3 PFM Component 0 0 6 6 6 18
4 ESPS
Management
2.5 2 1.5 1.5 1.5 9
5 Unallocated Funds 2 4 5 6 1 18
Total 32.5 32.9 39.2 40.2 35.2 180
Assumptions and risks
There are 9 formal assumptions that pertain to the EISP and UDEM components:
The public sector reforms in Tanzania successfully increase the effectiveness
of the civil service.
The capacity of the LGAs is sufficient to fulfil the conditions of the capital
grant, make use of the capacity grant and ensure adequate operation and
maintenance.
Central government institutions are able to focus on their facilitating and
regulatory role and allow LGAs to assume the implementation role.
Development partners provide sufficient funding and channel their funds
through the UDEM framework.
Urban communities will actively participate in the planning and implementing
of the UDEM activities.
Increased commitment, by DoE and NEMC, to implementation of EMA.
Increased commitment by MDAs to implementation of EMA
Increased management capacity in DoE/NEMC to coordinate the
implementation of EMA.
Continuing political support for environmental management.
The major risk factors listed below – these risk factors are considered pivotal, the
main document and the component description give a fuller list:
The public sector is overwhelmed by the number of reforms and is unable to
complete them.
Vested interests work against the public sector reforms e.g. in decentralisation
and the process takes much longer than envisaged.
Political instability at local government level which means that longer term
urbanisation challenges are not addressed.
Presence of more urgent problems and challenges in the MDA and LGAs so
that environment is placed on a lower priority.
PMO-RALG / DoE do not have sufficient capacity to coordinate and manage
the UDEM/EISP.
The EISP and UDEM framework do not attract sufficient donors and donors
are not stable in their cooperation and change focus before allowing results to
be consolidated.
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xvii
The main assumption/ risk associated with the PFM Component is that the transaction
costs of engagement in PFM are high, making more unsustainable forest management
more attractive.
Monitoring
Monitoring of the ESPS will take place at objective, output, and process level and use
existing monitoring systems as shown below:
Level Existing monitoring system
EISP UDEM Objective/ outcome MKUKUTA
Output MTEF – annual and 3 year strategic level for each budget holding entity
Process EWG assessment CDG performance measures
Thus no new monitoring system will be set up for the ESPs and the EMA and UDEM
components, neither by the government nor by donors supporting the EISP.
The outcomes will be monitored using the MKUKUTA indicators and monitoring
systems. The key indicators in MKUKUTA that relate to the EISP are shown in the
table below.
Poverty-environment indicators and relations to the ESPS Cluster/Goal Indicator EMA UDEM PFM
Cluster1/Goal 2* Proportion of enterprises undertaking EIAs
complying with standards.
X X
Cluster1/ Goal 5* % of households whose main income is derived
from harvesting, processing and marketing of
natural resources products.
X
Cluster 1/ Goal 6* % of households in rural and urban areas using
alternative sources of energy to wood fuel
(including charcoal) as their main source of energy
for cooking.
X X
Cluster2/ Goal 3* Proportion of population with access to piped
water as their main drinking water source.
X
Cluster2/ Goal 3* % of households with basic sanitation facilities. X
Cluster2/ Goal 3* % of schools having adequate sanitation facilities. X
Cluster2/ Goal 3* No of reported cholera cases X
Cluster2/ Goal 3* Total area managed by mandated local institution
for the purposes of community based natural
resources management.
X
Cluster3/ Goal 1* % of female small holder households with land
ownership or customary rights.
X X
Cluster 3/ Goal 2* Total value of revenues received from concessions
and licences for mining, forestry, fishing and
wildlife as % of their estimated economic value.
X X
Specific target setting has been done in MKUKUTA, e.g. the target for households
with basic sanitation facilities is 95% by 2010.
Detailed indicators at output and process level are given in the component
descriptions.
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Part I: Background and Context
1. INTRODUCTION
Danida has provided support to the environment sector in Tanzania since the 1980s.
The support intensified in the late 1990‟ies. An Environment Programme Document
was prepared for the 2000-03 period to guide the strategic considerations. Projects
were the preferred modality for Danida interventions at the time, but all ongoing
projects will cease during 2007. The support to PFM was structured as a component in
2003 adhering to the programmatic approach. Similarly, the support to Sustainable
Wetlands Management (SWM) was formulated as a component in 2004. The Danish
support to the Sustainable Cities Programme continued as projects for each of the six
selected municipalities. It was decided not to prepare a new Programme Document for
the Danish environmental assistance – replacing the 2000-03 Document.
A number of reviews were concluded during 2005 to feed into the preparation of the
continued support to the environment sector: 1) Participatory Forestry Management
Programme1; 2) Support to Sustainable Cities Programme2; and 3) Sustainable and
Integrated Wetlands Management3. The Government of Tanzania has undertaken a
needs assessment in relation to the Environmental Management Act (EMA, 2004),
which also highlights lessons learned in capacity building in the sector, and points at
ways forward. Finally, the European Commission has recently finalised a sector
review, which also provides useful insights. The following crosscutting experiences
can be extracted:
Past project approach, with partly parallel structures, has not resulted in
sustainability of achievements – although improvements in environment and
living conditions have taken place.
Past projects have been beneficial in piloting new approaches in the sector, but
the challenge is to link this to policy and strategy development and to scale up
and replicate the achievements.
The move from project-based implementation to an implementation modality
through the government system results in delays, due to the limited resources
and capacity of the government.
The support has over-emphasised the role of the line agencies and under-
emphasised the Decentralisation by Devolution (D-by-D) process and thereby
the role of local government authorities.
A Concept Note4 was prepared in January 2006 outlining the intended scope of the
Danida Environment Sector Programme Support (ESPS): 1) support to the
implementation of the Environmental Management Act (EMA; 2) support to Urban
Development and Environmental Management (UDEM); 3) continuation of the
support to PFM; and 4) continuation of the support to SWM. The Danida Programme
Committee responded favourably to the Concept Note in February 2006, however,
one comment being the need to have a more focussed ESPS in light of Tanzania‟s
1 Danida/ Finnida/ WB. Joint Review Report: Participatory Forestry Management Programme,
Tanzania, August 2005. 2 Danida/PEM. Technical Review of Danida Support to Sustainable Cities Programme, June 2005. 3 Danida. Mid-term Review: Report, Sustainable and Integrated Management of the Malagarasi-
Muyovosi Ramsar Site (SIMMORS), March 2005 4 Danida. Concept Note: Tanzania/ Environment SPS 2007-2011, January 2006.
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2
Joint Assistance Strategy, which builds on the Paris Declaration‟s principles of
increasing the effectiveness of aid. As a consequence, it was decided not to include
the support to SWM in the ESPS. The importance and multi-sectoral nature of
wetland management is recognised by the official creation in 2001 of the National
Wetlands Working Group (NWWG) comprising of 30 key wetland stakeholders
primarily at the central level. The support is assisting GoT in establishing a National
Wetlands Strategy, a more comprehensive National Wetland Management Programme
and is piloting wetlands management activities at regional, district, village and site
level. The regional activities are focussed in Iringa and Mbeya Regions and in the
Malagarasi Muyovozi and Lake Natron Ramsar Sites. In recognition of the need to
consolidate the achievements to date it was decided to continue the SWM on the basis
of the already agreed objectives and outputs, as stipulated in the Component
Description. The SWM Component has encountered delays and it has subsequently
been agreed to extend to the Component till June 2011 within the agreed budget
framework.
The Government of Tanzania (GoT) is in the process of developing the EMA
Implementation Support Programme (EISP) into which GoT and development partner
(DP) assistance could be channelled. Similarly, GoT is developing the UDEM
Framework, which constitutes the framework for GoT and DP interventions in
support of urban development. The EISP and the UDEM Framework are intended to
mature in structure and substance during the initial period of implementation. Danida
has provided technical assistance to GoT to facilitate the formulation of the EISP and
the UDEM Framework, which includes national and local level interventions.
Danida‟s support to the EISP and the UDEM Framework will be fully aligned with
the national structures and procedures and will be harmonised with other donors‟
support, which is anticipated to be forthcoming. The support to PFM is a continuation
of the ongoing support. The PFM Component has been extended to June 2009 within
the current budget frame, but will receive additional funding for the remaining
programme period under the ESPS from July 2009.
The present Environment Sector Programme Support (ESPS) Document presents
Danida‟s support to Tanzania‟s environment sector from July 2007 to June 2012, and
will comprise three components as follows:
1. Environmental Management Act Implementation Support Programme;
2. Urban Development and Environmental Management Framework;
3. Participatory Forest Management Programme.
The budget for ESPS is DKK 180 million. The Danida funds will largely be part of
pooled funding arrangements. An inception phase will take place of about one year
for the EISP, while the inception phase for the UDEM framework is already
underway.
The EISP and the UDEM Framework and the lessons learned from the ongoing
assistance form the basis for formulating the Danida ESPS Document, the EMA
Component Document, and the UDEM Component Document. The current PFM
Component Document is considered to remain valid as regards already agreed
objectives and outputs stipulated in the Component Description, and it is therefore not
deemed necessary to update the Document at this point in time. Section 5.3 of the
ESPS Document elaborates on PFM development scenarios by the end of the adjusted
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3
Component period (2009) and by the end of the ESPS (2012). The ESPS Document
and the EMA and UDEM Component Documents have been drafted during the April-
August 2006 period. An appraisal took place in October 2006 which was followed up
by a 2 month period during which the comments were taken into account and the
component descriptions and programme document updated in line with adjustments
that were also being made in the national sector framework at the same time.
The purpose of the Danida documents is to obtain agreement and approval by the
Governments of Tanzania and Denmark on the scope of the Danish assistance to the
environment sector in Tanzania.
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2. NATIONAL CONTEXT
2.1 Political and governance context
Political context
The United Republic of Tanzania was formed by the union of Tanganyika and
Zanzibar in 1964. Zanzibar continues to have its own government for internal affairs.
Tanzania embarked on a socialist direction, and the ruling party Chama Cha
Mapinduci (CCM) dominated virtually all aspects of political life. In the early 1990s
Tanzania began to move towards a multiparty system, and in 1991, a presidential
commission published recommendations for the establishment of a multiparty system
and several new political organisations emerged.
Although Tanzania abandoned its socialist policies in the mid-1990s and has held
multiparty elections since 1995, they have been overwhelmingly won by CCM and it
remains the strongest political party in Tanzania. CCM won an overwhelming victory
in the Union presidential and legislative elections in December 2005. CCM‟s
presidential candidate, Jakaya Kikwete, secured just over 80% of the votes and
became Tanzania‟s new president. The party captured 206 out of the 232
parliamentary seats up for election. The smooth electoral process has boosted
Tanzania‟s image as one of Africa‟s best performing countries.
President Kikwete has pushed ahead with the current reform programme and builds
on the progress made under the former president, Benjamin Mkapa. The new
government has reiterated its commitment to market-oriented reforms that
characterised the former government of President Mkapa. Further privatisation and
the increase in the number of special economic zones will be strategies in promoting
manufacturing-led economic growth. The environment sector is influenced by the
political transition in the last two decades and the economic market oriented reforms -
private sector and civil society have been given more space in the environmental
management, while environmental challenges have increased with the growing
economy. President Kikwete has furthermore made environmental management a
priority area for the new government. It was one of his ten core priority issues for the
government, mentioned in his initial speech to the national assembly (31/12 2005),
and this has since been followed up in various actions e.g. the establishment of a
cabinet committee on environment.
Regional integration
Relations between Uganda, Kenya and Tanzania have steadily improved since the
early 1990s. In addition they have increasingly similar economic reforms and have
adopted similar forms of democracy. Consequently, the countries revived the East
African Community (EAC) leading to the establishment of the East African Custom
Union in January 2005. The three countries have also established an EAC Parliament
and an EAC Secretariat in Arusha. Trade relations have been complicated by the fact
that Tanzania withdrew from the Common Market for Eastern and Southern Africa
(Comesa), on the grounds that it felt it was involved in too many trade bodies with
overlapping goals – although Uganda and Kenya remain members. Tanzania – unlike
Kenya and Uganda – is a member of the Southern African Development Community
(SADC), as Tanzania feels that SADC, rather than Comesa, offers better trading
opportunities and a more realistic chance of regional economic integration. In April at
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5
an EAC summit it was decided to speed up the process of negotiating a common
market, and implementation is aimed to start in January 2010. It was also agreed to
push ahead towards the goal of a political federation.
The closer cooperation between Kenya, Uganda and Tanzania is intended to promote
increased production and trade, which will have environmental management
implications. The cooperation will also provide new opportunities to address regional
level environmental problems and harmonise environmental management
interventions, e.g. in the Lake Victoria, where the Lake Victoria Environmental
Management Project (LVEMP) aims at restoring Lake Victoria‟s ecosystem.
Government structure and reform process
Tanzania has two tiers of government: central government sector ministries,
departments and other national agencies (MDAs), and LGAs comprising rural and
urban local governments. The PMO-RALG is the central agency for policy-making
and with regulatory and coordination functions for LGA affairs. The former Regional
Administrations have been transformed to Regional Secretariats, which have an
advisory and facilitating role towards the LGAs and are the intermediary link between
local and central government. The rural LGAs – district councils – lower levels are:
ward, village and kitongoji. Village councils with elected members govern village
affairs. The urban LGAs – city, municipal, and town councils – lower levels are: ward
and mtaa.
GoT has since the early 1990s embarked on a number of reform programmes. These
gained momentum during the second half of the 1990s and has since year 2000 been
guided by the poverty reduction strategies. A Public Service Conference was held in
October 2004 with a view to coordinating the major reforms: Public Service Reform,
Public Financial Management Reform, Legal Sector Reform, and Local Government
Reform. While all the reforms are addressing the public service, some are mainly
addressing administrative procedures, while others deal with core power balances, and
the nature of governance aspects of the reforms therefore varies. As an example,
PMO-RALG stressed at the Conference that „Decentralisation by Devolution‟ (D-by-
D) must be seen as a fundamental change in the way government carries out its
business, that it has implications for all ministries, and requires harmonisation of
national policies and political reforms.
The national development agenda is stated in: 1) the Tanzania Development Vision
2025; and 2) the National Strategy for Growth and Reduction of Poverty (NSGRP –
MKUKUTA, the Swahili acronym). The reform process is adjusted in order to be
consistent with the development agenda key strategies.
The Tanzania Development Vision 2025
The Vision envisages that Tanzania will have the following attributes by year 2025:
High quality livelihood: The development should be people-centred based on
sustainable and shared growth and result in Tanzania being free from abject
poverty;
A strong competitive economy: Emphasis on the need to have an economy
that can effectively cope with development challenges;
Good governance: This entails strengthening a culture of accountability,
rewarding good performance and effectively curbing corruption;
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A well educated and learning population: This envisages a nation whose
people are engrained with a developmental mindset and competitive spirit. It is
driven by education and knowledge; and
Peace, stability and unity: Peace, political stability and national unity and
social cohesion are important pillars for realisation of the Vision.
The intent is to phase the Vision‟s long-term development objective into
implementable short and long-term actions through a sequence of Medium Term
Plans (MTPs). The MTPs provide the framework for adjusting policy options, sector
objectives, strategies and targets to the actual economic and social contexts as they
evolve.
The Poverty Reduction Strategy
Tanzania‟s first Poverty Reduction Strategy (PRS) covered the period from 2000 to
2003, but was extended by one year. The scope of the second PRS is broadened from
a previous focus on social sector interventions to balanced interventions in all sectors
realizing the need for broad-based economic growth, social well being and good
governance. The Cabinet and Parliament adopted the MKUKUTA in early February
2005. The MKUKUTA makes linkages with Vision 2025 and is committed to the
Millennium Development Goals (MDGs) as internationally agreed targets for
reducing poverty. Tanzania‟s status regarding MDGs (compared to MKUKUTA
targets) is shown in the table below.
The MKUKUTA aims at poverty reduction through three broad outcomes:
1. Growth and reduction of income poverty;
2. Improved quality of life and social well being;
3. Good governance and accountability.
The MKUKUTA seeks to deepen ownership and inclusion in policy-making
processes by recognising a need to make participation more institutionalised. Strategic
planning and associated budgeting of MKUKUTA‟s interventions will be undertaken
in conjunction with the elaboration of the MTEF. The outcome approach encourages
inter-sector collaboration in devising efficient ways of reaching the targets and
achieving the specified outcomes. GoT will pursue debt sustainability, a
macroeconomic policy framework for low rates of inflation, stable exchange rate, and
a business environment conducive to private sector development and foreign
investments.
MKUKUTA emphasises mainstreaming of environment. The MKUKUTA
acknowledges the link between poverty and environment, builds upon MDG 7, and it
includes relevant targets in each of the three outcomes: 1) growth and reduction of
income poverty has for instance targets on the contribution of natural resources to
growth and poverty reduction; 2) quality of life and social wellbeing includes targets
on environmental protection and pollution control, on environmental services such as
water and sanitation, and vulnerability reduction; and 3) governance and
accountability has targets on equitable access and use of natural resources, general
public participation, and transparent and accountable use of natural resources. Out of
MKUKUTA‟s 108 targets, it is estimated that 15 are directly linked to environmental
issues.
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Table: 2.1: MDG and MKUKUTA Status 1990
Status
(Or closest
available)
2006
Status
(Or closest
available)
2010 MKUKUTA
Targets
2015
MDG
Targets
2010 MKUKUTA
Targets –
at current
trends
Goal 1: Eradicate extreme poverty and hunger (2015 targets = halve 1990 level of income poverty and malnutrition)
Income
% below the national poverty line 39 36 24 Uncertain
% below dollar a day poverty line 61 58 31
Child malnutrition
% of children under 5 underweight 29 22 15
% of children under 5 stunned 43 38 20 No
% of children under 5 wasted 6 3 2 Yes
Goal 2: Achieve universal primary education (2015 target = net enrolment of 100%) Net enrolment in primary schools (%) 51 91 99 100 Met
Goal 3: Promotion of gender equality, empowerment of women (2015 target = equal gender ratio)
Girl/boy ratio for enrolment in primary schools 1.01 0.99 1 1 Met
Girl/boy ratio for enrolment in secondary schools 0.70 0.81 1 1 Yes
Goal 4: Reduce child mortality (2015 target = reduce 1990 child mortality by two thirds)
Under five mortality (per 1000) 141 112 79 47 No
Infant mortality (per 1000) 92 68 50 No
Goal 5: Improve maternal health (2015 target = reduce 1990 maternal mortality by three fourths)
Reduce maternal mortality by three quarters (per
100,000 births)
529 578 265 132 No
Births attended by skilled staff (% of total) 53 46 80 No
Goal 6: Combat HIV/AIDS, malaria and other diseases (2015 target = halt and begin to reverse AIDS, etc.)
HIV/AIDS prevalence in the total population (%) n.a.. 7.0 <7.0
HIV/AIDS prevalence among 15-24 year pregnant
women (5)
n.a. 7.6 5.0 No
Goal 7: Ensure environmental sustainability (2015 target = integrate into government policies, reverse loss of
environmental resources, halve proportion of people without access to safe water and sanitation)
Proportion with access to clean and safe water in
urban areas (%)
92 91 90 90 Met
Proportion with access to clean and safe water in
rural areas (%)
36 47 65 90 No
Proportion of people with access to basic
sanitation in urban areas (%)
98 96 95 Mrt
Proportion of people with access to basic
sanitation in rural areas (%)
91 92 95 Yes
Goal 8: Develop global partnership for development (2015 target = sustainable debt, make benefits available of new
technologies)
** ** ***
Source: JAST, Part II: Draft Joint Country Analysis, June 2006
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Table 2.2: A selection of MKUKUTA targets related to environmental
management
Cluster I: Growth of the economy and reduction of income poverty:
Reduced negative impacts on environment and people‟s livelihoods;
Reduced land degradation and loss of biodiversity;
Increased contribution from wildlife, forestry and fisheries to incomes of rural communities.
Cluster II: Improvement of quality of life and social well being:
Increased rural and urban population with access to clean and safe water
Increased access to improved sewerage and sanitation facilities;
Reduced water related environmental pollution levels and reduction of harmful industrial and
agricultural effluents;
Planned and serviced urban settlements with functioning town planning procedures, and increased
number of people having secure tenure;
Reduced vulnerability to environmental disasters, Natural resources and ecosystems that people
depend upon for production and reproduction conserved, and reduction in land degradation and
loss of biodiversity;
Contribution of solar, wind, and biomass and coal for electricity generation increased, and increase
in the population using alternatives to wood fuels for cooking by 2010.
Cluster III: Governance and accountability:
Ensure representative, inclusive (poor and vulnerable groups) and accountable governance
institutions operating at all levels;
Public resources are allocated, accessible and used in equitable, accountable and transparent
manner.
Source: GoT/VPO. National Strategy for Growth and Poverty Reduction (NSGRP), April 2005
The original Poverty Monitoring System (PMS, 2001-2004) has been subject to a
major revision to become the national MKUKUTA Monitoring System (MMS).
Major differences from the PMS are:
A move from priority sectors output indicator approach to a MKUKUTA
outcome-based indicator approach;
A greater emphasis on economic growth and governance, than social sectors
alone; though further emphasis on vulnerability and social protection issues;
Recognition of cross-sectoral contributions to outcomes, and inter-sectoral
linkages and synergies; and further emphasis on mainstreaming crosscutting
issues;
Continued indicator tracking and integrations of MDGs into the national
indicator set.
The overall national indicator set for MKUKUTA are as far as possible drawn from
sector monitoring and from surveys, such as the Household Budget Survey conducted
by National Bureau of Statistics. The national indicator set is thus a selection of key
indicators and more indicators can be found in the respective sector monitoring and in
surveys. However, gaps in sector ministries monitoring exist, and some ministries do
not have established Management Information Systems (MIS) while others require
considerable upgrading, e.g. the FBD is only now in the process of establishing a
National Forest Programme (NFP) monitoring system.
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A special effort has been made, through the Danida supported Poverty Environment
Project (see later) to develop indicators that emphasise poverty-environment links,
which resulted in 10 indicators being included in the MMS. The MMS Master Plan
(MPEE, April 2006) includes in its Annex 7, a number of poverty-environment
indicators (draft) as shown in Table 6.6, which also indicates (subjectively) how the
ESPS three components are linked to these indicators.
Table 2.3: MMS poverty-environment indicators and relations to the ESPS Cluster/Goal Indicator EMA UDEM PFM
Cluster1/Goal 2* Proportion of enterprises undertaking EIAs
complying with standards.
X X
Cluster1/ Goal 5* % of households whose main income is derived
from harvesting, processing and marketing of
natural resources products.
X
Cluster 1/ Goal 6* % of households in rural and urban areas using
alternative sources of energy to wood fuel
(including charcoal) as their main source of energy
for cooking.
X X
Cluster2/ Goal 3* Proportion of population with access to piped
water as their main drinking water source.
X
Cluster2/ Goal 3* % of households with basic sanitation facilities. X
Cluster2/ Goal 3* % of schools having adequate sanitation facilities. X
Cluster2/ Goal 3* No of reported cholera cases X
Cluster2/ Goal 3* Total area managed by mandated local institution
for the purposes of community based natural
resources management.
X
Cluster3/ Goal 1* % of female small holder households with land
ownership or customary rights.
X X
Cluster 3/ Goal 2* Total value of revenues received from concessions
and licences for mining, forestry, fishing and
wildlife as % of their estimated economic value.
X X
Central level governance reforms and processes
In 2004, GoT expressed a strong wish for „one process, one assessment‟ with a view
to reducing the number of diagnostic tools applied, amongst others by the DPs, to
assess the public service broadly. The DPs responded amongst others by integrating a
number of instruments into a Public Expenditure and Financial Accountability
Review (PEFAR) that will be undertaken on a yearly basis. Other responses have
been a more MKUKUTA harmonised, aligned and simplified Budget Support Review
process and Performance Assessment Framework and Public Expenditure Review
system. The preliminary findings of the first PEFAR in October 2005 were that
Tanzania has a sound system of formal rules for financial management and that
extensive training had taken place on the application of financial rules and
regulations. There is, however, an issue with regard to compliance with and
enforcement of the regulatory framework.
The problems of weak compliance are addressed by the Public Financial
Management Reform Programme (PFMRP). GoT launched the PFMRP in 1996. The
first phase of PFMRP ended in June 2004 and is succeeded by the second phase (FY
2004-05 – FY 2008-09). The overall objective of the second phase is to strengthen
budget management, accounting and financial management practices by MDAs and
LGAs. Delays in implementing the PFMRP have occurred – affecting the areas of
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budget management, procurement and oversight functions – caused by low
institutional capacity and an overstretched management.
The Legal Sector Reform Programme has been underway for some time, since 1993.
In 1996, a task force presented a report, which pointed to the great need for reforms
within the judicial area. A medium-term strategy was presented in 1999, but had many
weaknesses. During the revision of the strategy, it became apparent that a reform of
the entire legal sector was necessary. In March 2005, the Cabinet approved the
medium-term plan for FY 2005-06 to FY 2007-08. The Reform aims at fostering
social justice, enhancement of human rights, equality and rule of law through
improved access to legal services and increase of the legal institutions‟ capacity.
The Public Service Reform Programme (PSRP) is gradually introducing a new
management culture and institutionalisation of an incentive structure in the public
administration. The PSRP was launched in 2000. It builds on the structural and
institutional changes established during the 1993-1999 Civil Service Reform
Programme, which focussed on redefining the role of the state and downsizing the
public sector to control public expenditures – especially the wage bill. The PSRP‟s
objective is to improve the delivery of public services by creating a more efficient and
effective public service that is responsive to citizens‟ needs. As a result, planning,
monitoring and evaluation are sought to be improved. This reform has supported the
transformation of a number of ministerial departments into semi-autonomous
institutions in accordance with the Executive Agency Act.
When the GoT set out to reform its public service in the early 1990s it soon became
apparent that local government – a sizable segment of the public service – needed
separate attention. The GoT and its DPs developed the Local Government Reform
Agenda 1996-2000. Subsequently in 1998, GoT published its Policy Paper on Local
Government Reform, which had four main dimensions:
Political decentralisation, with devolution of powers to locally elected
councils;
Financial decentralisation, based on a combination of discretionary powers of
LGAs to levy taxes and to pass their own budgets together with the obligation
of central government to provide adequate and equitable grants to attain
national standards of service delivery;
Administrative decentralisation, involving a de-linking of local authority staff
from the respective line ministries, making them accountable to the LGAs.
Changed central government – local government relations, whereby the role
of central government and line ministries is changed from a controlling role to
that of policy making, regulatory and monitoring functions.
The LGRP was conceived in 1997. A first two-year phase implementation began in
2000, and was followed by the Medium Term Plan and Budget, July 2002 to June
2005. A second Mid Term Plan and budget commenced in July 2005. An external
review conducted in October 2004 pointed to some positive results: i) the fiscal
decentralisation and the public financial systems at the local level were strengthened
as a result of the introduction of the formula-based block grant system and the
LGCDG; ii) the Public Service Act was in the process of being amended with a view
to vesting powers in the LGAs to make decisions as regard hiring and firing of LGA
staff; and iii) the process of harmonisation of existing legislation with the policy of
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decentralisation has begun. The review also highlighted a series of challenges that the
LGRP are facing, including limited high-level political ownership of, and engagement
in, the reform process. Local government reform efforts continue to be delayed or
disrupted by continuing central controls. Another major challenge is to engage the
sectors in merging or harmonising their LGA based programmes with the recurrent
block grants and/or the LGCDG system. Harmonisation of the Tanzania Social Action
Fund (TASAF) II5 with LGCDG transfer system remains a challenge.
In the period following the review, the LGRP team engaged in developing new
strategies to address the issues raised during the review process, which are
incorporated in the LGRP Medium Term Plan and Budget, July 2005 – June 2008.
Emphasis will be made on: i) progressing with D-by-D (Decentralisation by
Devolution) at the national level and embedding it across government; and ii) the
fiscal empowerment of LGAs, amongst others with the further implementation of the
LGCDG; iii) finalising the restructuring of councils and the Public Service Act
regulation; iv) Governance and legal harmonisation. The MTP is envisaged to
constitute a phase out of the reform secretariat and a full integration in PMO-RALG.
The Medium-Term Pay Reform Strategy (MTPRS) introduced a Selective Accelerated
Salary Enhancement (SASE) scheme in 1999. SASE was intended to be a temporary
measure to bolster the pay of key professional and managerial staff, the ultimate goal
being pay reform across all public services. In FY 2004-05 only four out of eleven
targeted MDAs were included in the scheme. About 9,000 civil servants were
expected to be part of the scheme (3-4% of the public employees), but only 1,650
benefited from the scheme. Cabinet took a decision in 2004 not to rollout the scheme
to other MDAs. The current situation with a SASE scheme of limited reach and with
no identified alternatives for other MDAs poses a critical problem. In response to this
challenge, the Government has in the national budget for 2006-07 introduced a Wage
Bill with higher salaries, but also lower allowances. This is supposed to provide a
more permanent solution to the problem.
2.2 The macroeconomic context
Economic policy
The commitment to reform – in particular a strong commitment to fiscal discipline –
and the high level of donor support means that the country has now seen a prolonged
period of macroeconomic stability. Inflation has fallen considerably and real Gross
Development Product (GDP) growth has picked up substantially, however, inflation
rose sharply in early 2006. From November 2001 Tanzania benefited from the
International Monetary Fund (IMF) - World Bank‟s (WB‟s) Heavily Indebted Pour
Countries (HIPC) debt-relief initiative and has since benefited from substantial debt
write-offs, including the Multilateral Debt Relief Initiative (G8) of gradual debt relief.
Tanzania‟s total external debt at end December 2005 was about 65% of GDP.
The main problem for the government has been to translate the macroeconomic
stability into improvement of the welfare of ordinary Tanzanians. The challenge for
the government in the coming years will be to push ahead with the more difficult
5 Tanzania Social Action Fund (TASAF) is a national initiative that makes funds available to village
governments for use around a series of investment packages defined by sector ministries to ensure
conformity with national policy and law.
ESPS Tanzania
12
structural and institutional reforms required to develop infrastructure, boost the
performance of key economic sectors (agriculture, forestry, wildlife, fishing, tourism,
manufacturing and mining) and reduce corruption, while also encouraging the
development of the private sector. The scale of the challenge has been made clear by
problems experienced in attracting sound private sector investments and by
difficulties that have occurred when the government has tried to encourage greater
private sector involvement in energy, telecommunications, water and transport.
Another main challenge for the government will be to increase domestic revenue,
which totalled around 14% of GDP in 2004/05. In particular the aim will be to widen
the tax base, improve administration and reduce taxes, which are burdening business.
In this regard, there will be substantial potential to increase revenues from extraction
and use of natural resources6.
The national Medium Term Budget Plans and Guidelines for FY 2006-07 to 2008-09
have been outlined and debated in the Parliament. The broad outline is shown in Table
2.4
Table 2.4: Medium Term Budget Plans (TZS millions) 2006-07
a 2007-08
a 2008-09
a
Domestic revenue 2,356,097 2,673,861 3,074,941
Programme loans and grants 693,012 758,049 804,549
Project loans and grants 749,998 800,578 859,726
Basket support loans 105,651 59,289 60,131
Basket support grants 175,025 126,609 109,126
Debt relief total 401,860 114,780 95,000
Borrowing 163,478 231,093 228,239
Privatisation funds 5,000 2,000 N/a
Total revenues 4,650,120 4,766,253 5,231,713
Recurrent expenditure 3,012,648 3,342372 3,701,152
Development expenditure 1,637,471 1,423,881 1,530,561
Total expenditures 4,650,120 4,766,253 5,231,713
Source: Ministry of Finance
Economic performance
Real GDP growth averaged 4.2% between 1996 and 2000, and picked up steadily to
6.2% in 2001 and has since remained close to 7% and reaching 6.7% in 2004. Good
weather, high commodity prices and strong growth in services are estimated to
contribute to a rise in GDP growth to 6.8% in 2005. Key annual economic indicators
are shown in Table 2.5 for the 2001-2005 period.
Table 2.5: Tanzanian annual economic indicators 2001
a 2002
a 2003
a 2004
b 2005
b
GDP at market prices (TZS billion) 8,274.1 9,445.9 10,692.4 11,394.1 12,693.4
GDP (USD billion) 9.4 9.8 10.3 10.5 11.2
Real GDP growth (%) 6.2 7.2 7.1 6.7 6.8
Consumer price inflation (average %) 5.1 1.0 3.5 4.1 a 4.3
a
Population 34.6 35.2 35.9 36.7 37.4
Export of good fob (USD million) 811.7 911.6 1,156.6 1,278.1 a 1,553.3
6 Fisheries revenues have for instance increased 50% from 2001 to 2004. Only 20% of the fisheries
revenue derives from marine fisheries (80% from inland, most notably Lake Victoria), where a 1-year
license of app. 17,000.00 US$ is estimated to amount to the same as the value of a days‟ catch.
ESPS Tanzania
13
2001a 2002
a 2003
a 2004
b 2005
b
Import of goods fob (USD million) 1,631.4 1,526.5 1,980.4 2,184.1 a 2,427.8
Current account balance (USD million) -456.6 -216.9 -393.4 -437.1 a -557.7
Foreign exchange reserves excl gold (USD) 1,156.6 1,528.8 2,038.4 2,295.7 a 2,048.8
a
Total external debt (USD billion) 6.8 7.3 7.5 7.9 8.2
Debt-service ratio paid (%) 9.7 b 6.6
b 4.7
b 6.6 6.0
Exchange rate (average) TZS: USD 876.4 966.6 1,038.4 1,089.3 a 1,128.9
a
Note: a actual,
b EIU estimate
Source: Economist Intelligence Unit. Country Report June 2006
In spite of stable GDP growth for several years in Tanzania (averaging about 6.8%
during the last five years), the „basic needs poverty‟ only decreased from 38.6 to
35.7% from 1991/92 to 2000/017. The target of the MKUKUTA is a reduction to 24%
by 2010. Recent analysis by the WB has combined Household Budget Survey (HBS,
2001-02) data with annual GDP data, which indicates that the trend in poverty
reduction between the two surveys was sluggish in the first half of the 1990s – with
declining income per capita up to 1994. Since then growth rates have been strong with
moderately rising average income resulting in a fall of poverty that is continuing at
present time.
The WB estimates that Tanzania needs a growth rate at around 6% per year to half
poverty by 20158, while it will require a growth in the range of 8%, to halve poverty
by 2010. However, despite a pick-up in growth, Tanzania remains a very poor country
even by the standards of Sub-Saharan Africa. Real GDP per head (at 1992 prices) was
TZS 50,431 in 1992, and fell to TZS 48,650 in 1994 before rising to TZS 59,459 in
2004. The slow growth in GDP per head is the result of a rapidly growing population.
The GDP per capita was about USD 300 in 2005.
The year-on-year inflation rate reached 6.9% in April 2006 being the highest rate
since January 2000. The sharp rise has been driven by the food price inflation, which
rose to 11.2% in April. The other main factors driving up inflation in the first four
months have been fuel, power, water, and transportation. Inflation is expected to
moderate in the second half of the year, as the rise in food prices will slow down
substantially as the new harvest reaches the market.
Drought in the north of the country in early 2006 has hit agricultural production, while
the competition for, and thereby lack of water, has lead to large falls in the generation
of hydropower. This negative impact of the water problem has affected both
manufacturing and small scale business and households significantly. As a result of
the combined effect of the drought and the water crisis, the forecast for real GDP
growth is 5.8-6% in 2006. There are no sufficient management mechanisms in place,
which effectively address the increased competition for water resources for irrigation,
hydropower, livestock herding, domestic water supply etc. and which could avoid the
negative impacts of periodic droughts, e.g. drop in electricity supply which in turn
affects manufacturing outputs. The environmental degradation in terms of
deforestation and other conversions of eco-systems are also acting as negative
contributors to the serious situation. Assuming normal rainfall, recovery in agriculture
and manufacturing could push real GDP growth up to around 6.5% in 2007. However,
7 The source for income poverty data is the Household Budget Survey (HBS). Surveys were conducted
in 1992 and 2001. The next survey is planned for 2006-07. 8 DP Poverty Monitoring Group: Poverty Brief – Tanzania, April 2006.
ESPS Tanzania
14
for Tanzania to achieve the consistently higher growth rates needed to really reduce
poverty, it will have to push ahead and address the structural constraints to growth,
notably by diversification of the economy, implementing agriculture sector reforms,
improving utilisation and management of natural resources, improving infrastructure,
reducing government bureaucracy and improving governance.
As can be assessed from the sectors‟ contribution to GDP (see Table 2.6) it is quite
apparent that the Tanzanian economy is natural resources based, and sectors, such as
forestry, fishing, tourism, mining, energy, are important to mention in this respect.
Other evidence of the importance is presented in the box below. Moreover, the
sensitivity to the availability of natural resources has been experienced in recent years,
and natural resources management thus needs to be given a very high attention.
Table 2.6: Gross domestic product by sector – mainland (% of total) 2001 2001 2002 2003 2004
Agriculture, forestry and fishing 45.0 44.7 44.7 45.0 46.2
Mining and quarrying 1.5 1.6 1.8 1.9 2.5
Manufacturing 7.5 7.4 7.3 7.2 7.0
Electricity and water 1.7 1.6 1.7 1.6 1.6
Construction 5.1 5.3 5.4 5.6 5.7
Trade and tourism 12.3 12.2 11.9 11.8 11.7
Transport and communications 5.4 5.4 4.7 4.6 4.5
Financial and business services 13.7 14.1 14.3 14.3 13.7
Public administration 8.0 7.8 7.6 7.2 9.3
Imputed bank service charges -2.3 -2.1 -1.9 -1.9 -2.1
GDP at current factor cost 100.0 100.0 100.0 100.0 100.0
Source: Planning Commission, Economic Survey 2004
ESPS Tanzania
15
Box 2.1: Economic importance of natural resources sectors:
Forests provide:
Employment to about 1 million people officially, and 5-10 times more unofficially and part
time
10-15 % share of Tanzania‟s registered export earnings
2-3% of GDP for officially recorded forest products
95% of Tanzania‟s energy supply through fuel woods
App. 75% for construction materials
100 / of indigenous medicinal products
Potential for tourism, the pharmaceutical industry and carbon sequestion (carbon value
estimated between 664 – 1,500 US$, depending on source of information)
Wildlife provide:
Annual hunting incomes to the Government estimated at 30 million US$
The leasing companies generate app. 9 million US$ per year
Annual illegal wildlife hunting (meat) value is estimated at 50 million US$
Well over 2/3 of the Tanzanian population eat wild meat, and for up 95% of the rural
population it is the most important animal protein source
In the 90‟ies more than 1,68 million birds, 521,000 reptiles, and 148,000 amphibians and
12,000 mammals were exported
Tourism revenue earnings have grown on an average 30% annually, among others due to the
attraction of wildlife.
Fisheries provide:
Exports totalled 130 million US$ in 2003, corresponding to more than 10 % of total exports
The export value of Nile Perch totalled 100 million US$ in 2003
The number of artisanal fishermen has roughly doubled since 1995, and reached close to
120,000 in 2003
The number of foreign vessels in the marine fisheries has increased from 10 in 1998 to 170 in
2004.
9,5 billion TZS was collected in revenue in 2003-4
Wetlands provide:
Significant national income evident in the importance of hydropower in the country‟s energy
production
Source: World Bank, Study on Growth and Environment Links for Preparation of Country Economic
Memorandum, 2005
2.3 The Socio-economic Context and cross-cutting issues
Population
Tanzania‟s total population in 2001 was 34.6 million of which about 1 million live on
Zanzibar. The population has grown with 2.9% per year since the previous census that
was held in 1988. Population growth rates vary dramatically across the country with
the regions with largest urban concentration growing the fastest. Since 2001, the
annual national average population increase is estimated at about 2% and the urban
population in the range of 6%9. The rapid urban increase is due to rural-urban
9 The average national population growth from 1948 to 2002 was 2.81%. The annual average urban
growth rate for the urban population was 7.22% and the rural 1.02% during the same period (source
JAST, Part II: Joint Country Analysis, June 2006). Based on updated population estimates, it appears
ESPS Tanzania
16
migration. Rural migration to urban centres is usually caused by low employment
absorption capacity in the agricultural sector and lack of non-agricultural employment
opportunities. The pull factor is the perception of the employment, housing and
income opportunities in the urban areas. The urban population is expected to increase
from around 8.0 million in 2001 to 13.4 million in 2010 and in 2010 expected to
constitute 32% of the total population. The rural population will increase from 26.6
million in 2001 to 27.9 million in 2010 and in 2010 constitute 68% of the total
population.
Table 2.7: Population figure and projections 2001 2005 2010
Pop
million
% of
Total
Pop
million
% of
Total
%
Growth
Pop
million
% of
Total
%
Growth
Rural 26.6 76.9 27.4 73 3 27.9 68 2
Urban 8.0 23.1 10.0 27 25 13.4 32 34
Total 34.6 100 37.4 8 - 41.3 - 10
Note: The urban population figures must be treated with caution, as recent censuses have revised urban
boundaries.
Source: Danida ESPS formulation team projections
The increasing urbanisation places correspondingly increasing strains on urban-rural
relations: 1) as the supply from the rural to the urban areas of food, energy,
construction materials, and natural resources inputs to manufacturing increase; and 2)
as pollution levels increase as a consequence of having expanded urban economic and
social activities, which in turn also have negative impacts on the environment outside
the urban areas. The high rate of urbanisation creates environmentally related
problems, due to lack of service provision with regard to sanitation, stormwater
drainage and solid waste management – in addition to the challenges of providing
housing, education, healthcare, work places, etc. and associated infrastructure. It
should also be noted that urban areas provide for rural areas in terms of markets,
transportation hubs, higher level education and health facilities etc.
Despite Tanzania having relatively low levels of inequality compared with other
African countries, there are still significant differences between poverty in different
parts of the country. Analyses combining census and HBS data have produced poverty
estimates at district level for the first time. Poverty rates in districts vary from below
20% to above 50%. Poverty levels are generally lower in urban areas compared to
rural areas, however it is only Dar es Salaam that has experienced a significant
reduction in poverty – down from 28% in 1992 to 18% in 2001.
However, inequalities in urban areas are significantly higher than in rural areas, and
GoT Poverty and Human Development Reports have repeatedly pointed at the context
of poverty in urban areas and at the specific poor and vulnerable groups in the urban
areas, and stated that the urban population exceeds the capacity of urban
infrastructure. The HBS 200/01 shows high level of overcrowding in urban areas,
especially Dar es Salaam, and increase in urban dwellers without tenure, and decrease
or stagnation in service provision, such as water supply, in urban centres.
that the current annual average growth rate is about 2% per year. The average annual urban growth rate
has been guesstimated at 6%.
ESPS Tanzania
17
The HBS indicates that the percentage of adults, whose primary activity is agriculture
or fishing has declined in the last decade from 73% in 1991-92 to 63% in 2001-02.
According to the 2000-01 Integrated Labour Force survey, the active labour force was
17.8 million. With the current rate of growth, this would indicate that 0.7 million
people enter the labour market each year. The HBS also indicated that there were 2.3
million unemployed persons in the country, the majority living in urban areas, notably
in Dar es Salaam, which again confirms the impression of urban inequalities.
Gender
Tanzania operates under a dual legal system consisting of the 1977 Constitution‟s
legal provisions (which stipulates that all people are protected against discrimination
and are equal before the law) and the traditional customary laws, which for example
often deny women their right to access and control resources after the death of their
legitimate husbands. The Land Act of 1999 and Village Land Act of 1999 provide for
complete gender equality in ownership of, and control over land, but these Acts are
not sufficiently enforced.
Women are still inadequately represented in the decision-making processes and public
employment at all levels, despite affirmative action taken by GoT over the past years.
Attitudes still exist at the household level that men are automatic heads and
breadwinners. Women face problems in their struggle for economic and social
prosperity – caused by lack of skills, inadequate access to capital, heavier domestic
workload, and traditional perception of women‟s roles. Despite equal access to
primary education among boys and girls, more young men get access to secondary
and tertiary education.
Gender equality and the empowerment of women are seen as key development goals
in both Vision 2025 and MKUKUTA. The Ministry of Community Development,
Gender and Children (MCDGC) has the overall responsibility for mainstreaming of
gender into MDAs and LGAs. The MCDGC is supported by the United Nations
Development Programme (UNDP) led Joint Gender Macro Policy Group with
representatives from central ministries and development partners. The group has
recently developed a five-year gender strategy focusing on MDGs and on the norm
setting goals from the International Conference for Population Development
(ICPD+10).
The National Strategy for Gender Development (NSGD, 2005) identifies gender
mainstreaming into all sector legislation, policies, plans, and procedures as a means of
promoting gender equality – including areas concerned with environmental
management. Each MDA and LGA are supposed to appoint „gender focal points‟ and
in some cases teams. Initially a few key ministries have been prioritised for capacity
building support by MCDGC: Health, Education, Planning, Agriculture, and Finance.
The gender focal points‟ roles are among others to: i) ensure gender consideration in
policies, strategies, plans and programmes and budgets of the concerned MDA or
LGA; ii) coordinate and monitor issues that will enable gender equity and equality in
the society; iii) ensure that administrative and management frameworks and
employment procedures in MDAs and LGAs are gender sensitive; iv) enable
collection, dissemination and storage of gender disaggregated data and information;
ESPS Tanzania
18
and v) coordinate and assess priority gender issues in all areas within the MDA or
LGA.
Capacity building is the responsibility of MCDGC, which trains the gender focal
points and assists with mainstreaming guidelines for specific sectors. These guidelines
will have some common features, but also sector specific aspects based on
international experiences and norm setting.
Although good progress has been reached in many gender interventions, overall
coordination and monitoring from central level remains weak.
In the National Strategy for Gender Development, the responsibility for preparing the
gender guidelines for environmental management is assigned to VPO, with support
from MCDGC and PMO-RALG. MCMDGC seems to have a good understanding of
some of the gender issues in the environment sector, e.g. access and control over
resources of land, energy etc. VPO-DoE will, as part of the EMA implementation,
also prepare guidelines for mainstreaming gender into the environment sector. The
MNRThas also a gender focal point. Finally, some of the poverty-environment
indicators in the MMS are gender disaggregated and/or specifically focused on gender
aspects, e.g. % of female small holder households with land ownership or customary
rights.
HIV/AIDS
HIV/AIDS is considered a national disaster by the government of Tanzania and has
been made a priority area in the NSGPR to be tackled through a multi sector approach
in a partnership between the public sector, the private sector, civil society, and donors.
Table 2.8: HIV/ADS statistics – estimates end of 2003 Adult population with HIV/AIDS (15-49 years) 1,500,000
Adult infection rate (%) 8.8
Estimated death due AIDS in 2003 160,000
Source: UN Programme on HIV/AIDS
GoT has plans to provide anti-retroviral drugs to 500,000 by the end of 2008. The
estimated 423,000 mothers with HIV/AIDS will be the group most heavily targeted to
receive the drugs. The plan is also to have testing facilities throughout the country.
The cost will be met by GoT, international donors, as well as the private sector. The
president‟s goal is to halt the increase in prevalence of the disease before 2010.
GoT adopted a National Policy on HIV/AIDS in November 2001. The overall goal of
this Policy is to provide for a framework for leadership and coordination of the
national multi-sectoral response to the HIV/AIDS. The “National Multi-Sectoral
Framework on HIV/AIDS” for the 2003-07 period was subsequently prepared as a
follow-up on the Policy. The Framework outlines nine goals and targets to be attained
by 2007. The Tanzania Commission for AIDS (TACAIDS) coordinates, monitors and
evaluates the progress on implementing the Framework.
The policy and framework includes the formulation, by all sectors, of appropriate
interventions, which will be effective in preventing transmission of HIV/AIDS and
other sexually transmitted infections, protecting and supporting vulnerable groups
(cure), and mitigating the social and economic impacts of HIV/AIDS – relevant to
ESPS Tanzania
19
their sector‟s core mandate. LGAs are also supposed to formulate plans cutting across
all departments in the councils. Both types of institutions should appoint HIV/AIDS
focal points. The plans and intervention should both target the staff of these respective
government institutions, and the “external” activities and target group of the MDA or
LGA. In the Environment sector opportunities for activities are seen in relation to
extension work, National Environment Day etc., according to TACAIDS. .
The annual plans for the respective institutions are often done in cooperation with
TACAIDS, and are often given a separate budget in MTEF, and those budgets are
increasing. A national Monitoring and Evaluation framework is under development,
as only geographical and thematic reviews have been conducted so far.
Good governance
The Tanzanian Constitution provides the basic provisions on civil and political human
rights. The human rights situation in Tanzania has generally improved since the mid
1990s, but the adherence to human rights commitments has not been as effective as
desired. Shortcomings include corruption and inefficiency within the police and the
judiciary, and lack of respect, freedom of expression and assembly. The establishment
of the Commission for Human Rights and Good Governance in 2000 was an
important step in addressing this situation. Civil society, media and the Parliament are
increasingly questioning the government on human rights issues. Tanzania has ratified
various core international and regional human rights instruments, but is still to ratify
some. MKUKUTA includes rights of the poor and vulnerable groups as a focal area.
Respect for human rights, the rule of law, democratic principles and the independence
of the judiciary are essential aspects of MKUKUTA‟s Cluster III, Governance and
Accountability.
GoT pursues good governance in two parallel sets of action: 1) strengthening of the
public administration, i.a. through the earlier mentioned reforms aimed at increased
transparency and accountability; and 2) implementation of anti-corruption measures.
During the latest joint annual budget support review in October 2005, progress was
assessed to be overall satisfactory. However, main issues of concern were in the
governance area, including the weak domestic accountability processes, e.g. the
National Audit Office‟s audit reports are not of a good quality and are submitted late
to Parliament; and the Public Accounts Committee‟s reports on audits are tabled, but
not debated in Parliament, and their recommendations are not followed up.
According to the Controller and Auditor General (CAG), corruption in government
functions is most prevalent in public procurement, revenue collection, and financial
management – in that order. The WB estimated in their latest Country Procurement
Assessment Report (CPAR, 2003) that about 20% of the GoT expenditure is lost
through corruption. A new Public Procurement Act became effective in May 2005 and
has resulted in the decentralisation of procurement e.g. from central tender boards to
MDA tender boards and LGA. The new Act also initiated the establishment of the
Public Procurement Regulatory Authority (PPRA) to regulate and monitor
procurement activities, which are seen as an important step in mitigating fiduciary
risks.
ESPS Tanzania
20
Tanzania launched the National Anti-Corruption Strategy and Action Plan in 1999.
Corruption in Tanzania is rated about average for the region10. Tanzania has seen an
improvement in corruption since 1996. It is one of the top-rated low-income countries
in WB‟s “Country Policy and Institutional Assessment” and has one of the best
ratings of all HIPC countries in the WB-IMF poverty expenditure tracking
assessment. Tanzania‟s rating by Transparency International has improved over the
years, the Transparency International (TI) Perception Index rising from 1.9 in 1998 to
2.9 in 2005. While the reforms have closed several avenues to corruption, there have
been few convictions on corruption. The GoT survey on corruption in 2004 indicated
that Tanzanians felt that corruption is increasing. An anti-corruption strategy for
2006-11, currently under preparation, will attempt to attack root causes in a
systematic way.
A government programme for implementing a Strategy for Urgent Action on Land
Degradation and Water Catchments (SUALDWC) has recently been launched with a
significant budget for the financial year 2006/7 and possibly longer. It carries strong
support at the ministerial and cabinet level and there are large expectations that it will
slow down environmental degradation in threatened catchments. Implementation of
SUALDWC will be a test of how good governance is as there will be a need to
balance environment requirements with respect for human rights and welfare and
adherence to environmental laws as well as resettlement laws and other laws
governing rights of citizens.
Environment
All economic and social activities have environmental implications – although to
varying degrees. Environmental concerns and management constitute an important
element in all public and private planning of new activities and management of
ongoing activities. A recent assessment revealed that environmental awareness and
capacity in Tanzania are generally low. Legal provisions are in place and it is thus a
matter of integrating environmental interventions as a crosscutting issue in all private
and public development initiatives and mainstreaming of environmental concerns in
all public and private economic and social functions. Chapter 3 will, in greater detail,
elaborate on legal provisions and the opportunities they provide.
2.4 The Public Planning and Financial Management System
The current strategic planning and budgeting cycle for MDAs, Regions and LGAs
The Tanzanian planning and budgeting process for MDAs and LGAs ideally contain
seven steps11 within an annual planning calendar as shown in Table 2.6:
Situation Analysis, which identifies the main issues and problems that need to
be addressed;
Strategic Plans chart an institution‟s broad direction forward. The Strategic
Plans (SP) are prepared in three-year cycles. The SP focuses on the long-term
perspective and sets out priorities and objectives;
Budgeting involves a projection of revenues and the costing of the SP and of
personnel;
10
UN Economic Commission for Africa 11
GoT. Working document: Medium Term Strategic Planning and Budgeting Manual, November 2005.
ESPS Tanzania
21
Action Planning: Institutions schedule their activities for the up-coming year
and prepare detailed plans, e.g. disbursement schedules/cash flows, detailed
departmental plans, procurement and training plans, and individual
performance agreements;
Implementation: Financial control and monitoring take place through GoT‟s
Integrated Financial Management System (IFMS);
Monitoring and Evaluation: Institutions track the SP progress – focussing on
activity completion, level and quality of services provided, and fulfilment of
objectives.
Reporting: Results are communicated to management for endorsement.
Table 2.9: GoT Annual Planning Calendar Year n Year n + 1
J F M A M J J A S O N D J F M A M J
Budgeting
Preparation of Budget Guidelines x x
Budget Guidelines announced x
Budget preparation x x x
Parliamentary budget discussions x
Reporting
Q & Mid Year Performance Reports x x x x x x
Annual Performance Reports . . . . . . . x
Annual MKUKUTA Implem. Report . . . . . . . . . x
PER Cluster Studies x x x x x x x x
PHDR/ Status Report . . . . . . . x
MDA & LGA Strategic Plans Review . . . . . . . . .
Strategic Policy Brief x
Views of the people x
PER and National Policy Dialogue x x
Source: GoT/MPEE. Master Plan: MKUKUTA Monitoring System, April 2006
The planning and budgeting (MTEF) process is guided by reviews of the previous
performance in the form of performance reports, the Strategic Plans of the institutions
in relation to the MKUKUTA, and a number of macro-level reviews, studies and
assessments that are undertaken from January to October. These include, i.a. Public
Expenditure Reviews (PER) cluster studies, the annual MKUKUTA Implementation
Report, and the Poverty and Human Development Report (PHDR). Not all of these
are available at present or of a sufficiently high quality, e,g. the first MKUKUTA
implementation report was made available September 2006, but provides very limited
insights. Moreoever, cluster PER have not yet been been conducted, and sector PER
are only available for some sectors. Ideally, all of these reports12 , and the budget
requests submitted by the MDAs, Regions and LGAs, would be used to prepare the
Plan and Budget Guidelines (PBG) and ceilings, which are also informed by the
estimated available resources, domestic and foreign. However, MDAs still have to
contest for resources as apart of this exercise.
The MDAs, Regions and LGAs apply the Strategic Budget Allocation System
(SBAS)13 when developing their budget requests. A modified SBAS Micro version
has been developed for LGAs, termed PLAN-REP, which besides the financial data
also includes physical data for monitoring and reporting purposes. Plan-Rep has been
rolled out to most LGAs, and approximately 50% used it for the current financial
year. Physical data is also included in the MTEF for MDAs.
12
Especially the link to MKUKUTA is important, and MKUKUTA oriented Plan and Budget
Guidelines are in place. 13
The SBAS micro and macro versions use the Epicor software.
ESPS Tanzania
22
The budget preparation at the central level includes consultations with DPs during
March and April – often in the form of sector reviews. DPs‟confirm their financial
commitments for the coming MTEF period. The estimates are submitted to the MoF.
The Cabinet Secretariat and the Inter-Ministerial Technical Committee (IMTC),
which comprises all permanent secretaries, advises the Cabinet before its approval of
the National Plan and Budget Proposal. Where the approval is granted with
amendments, the MDAs will be required to make the final adjustments to be
consolidated by MoF. Parliamentary budget discussions and approval take place in
June – prior to the Financial Year that commences 1 July.
In general, the establishment of the MTEF system improves the predictability of
budgets by stating both domestic and donor resources, by realistic costing of actions
and personnel emoluments, and by effective monitoring of expenditures in relation to
set targets. However, the MTEF system is still not fully operational, and some of the
intentions therefore not fulfilled.
The MTEF budgets are supposed to be entered into the IFMS. IMFS has facilities to
produce performance reports used for budget monitoring and control.
The reporting system will also include two types of progress reports, which have to be
submitted by MDAs, Regions and LGAs – including both physical and financial data:
Performance Reports and Three-Year Outcome Reports. The performance reports
compare the institutions‟ targets from the Strategic Plans together with an explanation
of why targets may or may not have been met. The performance reports will also
highlight major accomplishments, constraints, and emerging issues and provide a
comparison of budgeted and actual costs. There are three main types of performance
reports:
An Annual Performance Report should be prepared by 15 August and be
submitted to the relevant Parliamentary committee and MoF;
A Mid-Year Performance Report should be prepared by 25 January and be
submitted to MoF. This report is a shorter and simpler version of the Annual
Report;
A First quarter and Third quarter Quarterly Progress Summaries are submitted
to MoF.
The Three-Year Outcome Report assesses the degree to which an institution is
meeting its objectives, outcomes and impacts. The respective institutions produce the
Report by reflecting on the three-year strategic planning cycle. Inputs to the Report
are generally derived from surveys and evaluation studies and the general monitoring
process – such as the State of Environment report. The MDAs submit the Outcome
Report to the appropriate Parliamentary Committee and MoF. The LGAs submit the
Outcome Report to the Regional Commissioner and MoF.
The current LGA grant system
The recurrent budget
A new LGA formula-based recurrent grant system was introduced beginning from FY
2004-05 with the aims of:
Making the system more aligned to the LGA expenditure needs;
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Ensuring higher LGA discretionary power to adjust to the required local need
and service provision priorities;
Improving the LGAs‟ incentives to perform; and
Making more predictable, stable and transparent planning, implementation and
reporting.
The grant pool is divided into six funds targeting recurrent costs of administration and
five priority service areas: education, health, roads, water, and agriculture. The new
system will be phased in over a four-year period starting with health and education in
FY 2004-05 and roads, water and agriculture for FY 2005-06. There is one grant per
sector. A differentiation between personnel emoluments (PE) and other charges (OC)
is no longer made. The recurrent budget is primarily funded by GoT‟s own revenues.
The development budget14
From FY 2005-06 a much larger share (some 50 billion TZS) than previously will be
transferred through a new block grant system for LGAs: the LGCDG. The LGCDG
constitutes some 4% of the total GoT development budget for 2005-06, but it is GoT‟s
intent that the share increases over time. The LGCDG will on average provide 1.5
USD per capita to each LGA annually. The funds will be distributed according to a
formula: population – weight 70%, size of land area – weight 10%, and poverty based
on officially available statistics on the number of people below the basic poverty line
– weight 20%. Each LGA is allocated a discretionary CBG of USD 35,000 to provide
means for improving their capacity. The LGCDG and CBG are provided on an annual
basis.
The LGCDG is only transferred to LGAs that fulfil a range of minimum conditions
(see table below). The minimum conditions for LGAs to access LGCDG are to ensure
that funds are effectively and efficiently used in compliance with GoT statutory and
administrative requirements. The minimum conditions are mainly quantitative and
simple to assess.
Table 2.10: Indicators for assessing Minimum Conditions for LGCDG and CBG
Financial Management
Positions of council director and treasurer substantially filled S
Financial accounts for the previous FY produced and submitted for audit in time P
The councils did not receive an adverse council report for their last audited accounts P
No financial management irregularities have been reported by internal/external auditors P
Bank reconciliation statements for all accounts prepared within 15 days of the previous month S
Internal audit in place and functional P/S
Regular production of financial reports. All quarterly presented to Council/ RS/PMO-RALG P
Fiscal Capacity
Sufficient funds available to meet the co-funding obligation – 5% of the LGCDG amount S
Planning and Budgeting
Development plan approved by the council on time P
Budget process adhered to the provisions of the LG Act and Planning & Budgeting Guidelines P
Procurement
Legally constituted Tender Board P
14 The development budget is primarily donor funded. A great part of DPs‟ support is not captured by
the GoT budget, as development funds are delivered through various projects outside the GoT transfer
system.
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National Guidelines and Manuals available P
Councils Functional Process
Regular meetings of the council – at least one meeting held every three months P
Minutes of the council meeting recorded on a permanent record P
Project Implementation, Monitoring and Evaluation Capacity
Annual and quarterly work plans available P
Progress reports on project implementation available P
Capacity Building
Capacity Building Plan in place S
Reports on the utilisation of CDG submitted on a timely basis P
Notes: P – primary conditions; S – secondary conditions.
Source: PMO-RALG
The criterion for accessing the CBG is that the LGAs have developed a capacity
development plan. This indicates the synergetic link between the two grants: The
capacity building grant is relatively easier to access, and if spent wisely, it can build
the capacity to access the capital grant (LGCDG). It was amongst others established
to ensure that the non-accessing councils, with poor capacity, are given the
opportunity to improve, and access LGCDG at a later stage, and it thereby aims at
creating incentives for good governance.
The yearly LGCDG will be adjusted based on an assessment of the LGA‟s
performance. The performance measures are more qualitative and seek to evaluate the
performance of the LGA in key functional areas and compliance with policy
guidelines on governance, participatory planning, pro-poor budgeting, project
implementation, etc. – with a view to improving service delivery. The performance
assessment results in a detailed scoring of the functionality of main generic LGA
functions (see Table 2.11). The LGCDG annual allocation will be adjusted based on
the performance either upwards or downwards according to the incentive scheme (see
Table 2.12). Work is continuing on the refinement of these performance criteria, and a
criteria on the adoption of EIAs in LGA planning and design of projects is proposed.
Table 2.11: Performance measurement and scoring system
Functional Area
Total Score
Minimum score
below which a
penalty applies
Minimum score to
receive
performance
bonus
A. Financial Management 10 5 7
B. Fiscal Capacity 15 7 12
C. Development Planning 20 10 14
D. Transparency and Accountability 10 4 8
E. Interaction with LLG 10 4 4
F. Human Resources Development 10 4 8
G. Procurement 10 5 7
H. Project Implementation 10 4 7
I. Council Functional Processes 5 2 3
Total 100 51 70
Source: PMO-RALG
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Table 2.12: LGCDG and CBG Incentive Scheme Performance rating Reward/ sanction
Acceptable performance (attained minimum scores to remain
static)
Receive basic LGCDG for next FY
Very good performance (attain scores above the stated
minimum)
+20% LGCDG allocation for next FY
Poor performance (scores below the stated minimum) -20% LGCDG allocation for next FY
Non compliance with minimum conditions No LGCDG
Compliance with minimum conditions to access the CBG Receives CBG
Non compliance with minimum conditions to access the
CBG
No CBG
Source: PMO-RALG
The assessment of minimum conditions and performance measures takes place every
year during September-October as part of the planning and budgeting cycle. An
Assessment Manual has been prepared for the assessment teams that conduct the
assessments. In order to ensure objectivity and high quality, PMO-RALG contracts
consulting firms with demonstrated capacity to conduct the assessment exercise and
compile the assessment report.
Within the LGCDG system, the higher-level local governments (HLG – Districts,
Cities and Municipalities) are obliged to spend 50% of the LGCDG on Lower-Level
Local Governments (LLG – wards, mtaas, villages and kitongojis). The 50% share to
LLGs is distributed based on population data only, which provides an indicative
planning figure (IFP) within which the LLGs can plan their activities. Part of the 50%,
which the HLGs decide over, can still be spent in LLGs based on the outcome of the
bottom-up planning exercise. A planning system termed Opportunities and Obstacles
to Development (O&OD) has generally been introduced in LLGs as the vehicle to
arrive at well balanced and prioritised activities. The LLG plans are reconciled at the
HLG level. The investment menu for HLGs and LLGs differs according to mandated
responsibilities and comparative advantages. Another feature of the LGCDG is the
cost-sharing: Communities that benefit from the investments shall provide a minimum
cash and in-kind contribution.
As the grants are discretionary, in line with the decentralisation by devolution policy
of the GoT, investments are determined by each LGA, which qualifies to receive the
Grant. The technical design of projects is done at the LGA level. The project designs
are appraised and quality assured by the LGAs. Project implementation is subject to
performance assessments through the established procedures, which in turn ensure
the appropriate use of funds through sound financial management and good
procurement practices. Furthermore, MDAs have inspectors or technical officers who
oversee the LGAs‟ performance.
The Permanent Secretary (PS), PMO-RALG chairs a LGCDG Steering Committee
and its members comprise permanent secretaries from MoF, Ministry of Planning,
economy and Empowerment (MPEE), relevant sector ministries, and DPs. PMO-
RALG provides the secretariat. The LGCDG Steering Committee ensures cross-
sectoral coordination and oversees all development transfers. The Deputy PS, PMO-
RALG chairs the inter-governmental Technical Committee that assists with the
implementation of the LGCDG system and ensures the overall monitoring planning,
management and implementation of LGCDG activities. Development Partners are
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also represented in the Technical Committee. A review/supervision mechanism is in
place, amongst others due to the WB requirements.
The Technical Committee recently approved the assessment results as stated in Table
2.13 and the budget for 2006-07 shown in Table 2.14 to the LGCDG Steering
Committee.
Table 2.13: Number of qualifying LGAs in FY 2005-06 and FY 2006-07 Qualification
status
LGCDG DADG CBG
2005-06 2006-07 2005-06 2006-07 2005-06 2006-07
Qualified 58 62 0 49 112 121
Provisional 8 22 0 29 1 0
Disqualified 47 37 0 43 0 0
Total assessed 113 121 0 121 113 121
Note: DADG, District Agricultural Development Grant, which is a new grant introduced from 2006-07,
which has been designed within the LGCDG system and will be disbursed through the LGCDG
processes.
Source: PMO-RALG. Progress Report January to June 2006: Support to LGCDG System, June 2006.
Table 2.9: LGCDG System Budget (TZS millions) Actual Budget
Expenditure 2005-06 2006-07
Capital Development Grant (LGCDG) 38,261 48,303
LGCDG to non-qualifying councils 0 1,622
Capacity Building Grant (CBG) 4,351 5,294
Total discretionary grants 42,612 55219
District Agricultural Development Grant 0 4,263
Agricultural CBG 0 3,293
Total Agricultural Grants 0 7,557
Total Grants 42,612 62,775
Service Costs 2,545 3,667
Total Expenditure 45,157 66,442
Funding
LGSP (IDA) 16,582 19,882
LGSP (GoT) 2,300 2,771
GoT Development Budget 5,612 5,686
Agricultural Basket 0 7,557
Development Partners (excl. IDA) 22,059 33,782
Total Funding 46,553 69,678
Surplus c/fwd 2,355 5,590
Note: LGSP, Local Government Support Programme funded by IDA/WB.
Source: PMO-RALG. Annual Budget 2006-07, June 2006.
World Bank/ Internatioanl Development Agencies‟ (IDA) current funding covers 41
LGAs in the LGCDG system, while other development partners provide funding for
72 LGAs. IDA and other development partners are essentially financing a single
LGCDG system, using identical criteria and processes. An IDA credit in the amount
of USD 52 million was provided from April 2005 to June 2008. IDA provided an
additional credit in the amount of USD 98 million for funding of the LGSP from July
2008 to June 2011.
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3. THE NATIONAL ENVIRONMENTAL SECTOR FRAMEWORK
3.1 Natural Resources and Environmental Management Challenges
Tanzania is one of the world‟s top twenty countries as regards biodiversity and is one
of the few countries that have more than 20% of its land under protection mainly:
national parks, game reserves, forest nature reserves, marine parks, and game
controlled areas. Tanzania is endowed with abundant natural resources, which include
large areas of land, forests, wildlife, rivers, lakes, coastal zone, and fisheries. Tanzania
has a significant range of minerals. Those exploited commercially include gold,
diamonds and various gemstones. Tanzania also has coal and gas, which are located
off the coast of Tanzania.
Although natural resources are fundamental to the economy and rural and urban
peoples‟ livelihoods, the contribution is often unacknowledged, and the development
potential is often underestimated. This underestimation is partly caused by missing
market mechanisms, including pricing below the market values, as in the earlier
mentioned example (footnote 7) with the marine fisheries license fee, or in the price-
setting of charcoal, which does not represent the true production costs and
replacement value. The widespread market failure leads to sub-optimal benefits for
communities and loss of government revenues.
It is generally difficult to predict the growth potential of the utilisation of natural
resources, as the knowledge about the abundance, value, and current exploitation of
resources is limited. However, it is widely thought that contributions to Tanzania‟s
development from natural resources could be larger and benefit more people if natural
resources were managed in a more sustainable and equitable manner, building on
principles of good governance. Benefits are not always shared fairly, e.g. incomes
from wildlife hunting in an area will often not be shared with local communities in the
same area, and growth is often not pro-poor e.g. the foreign marine fishing vessels are
not landing their catch in Tanzania, and therefore not creating jobs in the harbours and
in processing industries. More could thus be done to create jobs and income in the
natural resources sector, also through community-based management, but transfer of
management rights is often complex and costly. The full potential for poverty
reduction is thus not tapped.
Instead, the natural resources sector is hampered by weak management regimes,
facing irregularities and sub-optimal management. One example is the continued
illegal logging, where the recently reassigned Minister of Natural Resources and
Tourism, Mr. Anthony Diallo, on several occasions has admitted that government
officers unfortunately are involved. The “unhealthy” part of the private sector benefits
from the current unsustainable situation, while the more responsible and sustainable
investors are discouraged by the unfair competition. Furthermore, though policies and
the legal framework are largely in place, there is a wide gap between policy, planning,
and action on the ground. The National Forest Policy, Act and Programme are
opening up for private sector involvement in the form of concessions, but so far little
progress has taken place. Similarly, the intentions of community involvement in
wildlife management, in the form of establishment of Wildlife Management Areas
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(WMAs), is still only at a very limited pilot stage and continue to face difficulties,
despite several years of implementation.
The increasing population and GoT‟s intention to have a growth in GDP per year in
the range of 6-8% in order to reduce poverty will: 1) place further pressure on and
increase competition for natural resources as an input to production, as well as for
community and household utilisation; and 2) increase pollution – in particular urban
pollution - that will also impact negatively on natural resources. This is further
emphasised by the estimated population growth and specifically the high growth rate
of urban areas (see earlier Table 2.7)
With the mainstreaming of environment in MKUKUTA, and with the passing of the
EMA and other legal and policy provisions, there is a good framework for
environmental planning, management, and enforcement. The challenge is thus to
make use of the framework in order to attain substantial and visible effects on the
state of environment for the benefit of Tanzania‟s development. This will require
substantial capacity building, institutional development, and development of inter-
institutional relations between MDAs and between MDAs and LGAs. Improved
environmental management is a necessity, but it will need to be complemented with
innovations and technology development. The challenge is also to substitute
traditional control and command regimes with environmental systems based on
economic instruments, and voluntary, incentive-based systems, and on markets – in
line with the provisions of EMA. Political attention to the environmental challenges
has increased: In response to the recent water and energy crisis, GoT adopted the
Strategy for Urgent Action on Land Degradation and Water Catchments
(SUALDWC), presenting a number of challenges (see Box 3.1). The Strategy
constitutes immediate and first steps to solve the energy crisis, but another strategy
addressing lakes and coastal areas is ready.
Box 3.1: Strategy for Urgent Action on Land Degradation and Water
Catchments
The challenges include:
1. Environmental degradation arising from the invasion of water catchments by pastoralists;
2. Environmental degradation arising from illegal human activities agriculture, pastoralism, human
habitat on mountain slopes, mountain ranges, in river valleys and around water sources;
3. Environmental degradation due to rampant deforestation for firewood and charcoal, and
construction of houses in urban centres;
4. Unsustainable small and large scale irrigation programmes and projects with negative
consequences on biodiversity and water availability in dams used for hydropower generation;
5. Inadequate data and information at district level regarding water sources and water uses for social
and economic development;
6. Environmental degradation and deterioration of water sources due to wild fires;
7. Drying up of water sources resulting from planting and growth of inappropriate alien and exotic
tree species;
8. Rapid expansion of the arid and semi-arid zones and the occurrence of drought in many part of the
country;
9. Limited public awareness and public involvement in environmental protection and sustainable
utilisation of natural resources;
10. Land use conflicts among various stakeholders (especially between pastoralists and farmers) and
the resulting environmental degradation;
11. Environmental degradation arising from mining activities;
12. Environmental pollution due to plastic wastes.
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These strategies provide on the one hand an opportunity for EMA implementation to
create a coherent framework that can ensure that the urgent actions are well conceived
and implemented in a manner compatible with the act. EMA implementation will be
able to learn from the actions of these strategies, both from those which are less
successful, and document as demonstration cases those actions that are successful and
which provide an insight into implementation of environmental management
While the strategy is addressing the problems leading to the energy crisis, incl. the
encroachment of people on vulnerable land and water catchments, there is a danger
that urgent actions on the environment can lead to forced resettlement as has
happened before in Tanzania. There are international rules, as well as national laws
and guidelines and procedures to prevent this, and to ensure that potential
resettlements are done in a proper manner. As mentioned earlier, implementation of
SUALDWC will be a test of how good governance is as there will be a need to
balance environment requirements with human welfare and rights and a need to
adhere to both environmental laws and resettlement laws
Environmental management – e.g. of rivers, lake basins, and watersheds (and other
resources) – is transboundary and has local, national, regional and sometimes even
global implications. Tanzania‟s environmental institutions provide such regional or
international focus in cooperation with counterpart ministries in neighbouring
countries in its regional cooperation and in relation to Multilateral Environmental
Agreements. Such cooperation examples exist in Tanzania, e.g. the earlier mentioned
Lake Victoria Environmental Management Project15 (LVEMP). Cooperation also
takes place locally between Districts and Regions, between MDAs, and in a
combination between these e.g. in wetlands management projects and the Pangani
River Basin Authority – but no model exists and legislation and administrative
boundaries do not yet institutionalise this.
Tanzania has in general demonstrated a strong commitment to protect the
environment through adoption and ratification of a number of international
conventions and treaties (see Box 3.2).
Box 3.2: International treaties on environment ratified/ acceded to by Tanzania
Convention/Treaty
Adoption
Ratification
Convention for the protection, management and development
of marine and coastal environment of the Eastern African
Region
1985 1996
The Vienna Convention on Protection of Ozone Layer and
Montreal Protocol on Substances that Deplete the Ozone Layer
1987 1993
The Basel Convention on the control of transboundary
movements of hazardous wastes and their disposal
1989 1993
Bamako Convention on the ban of the import into Africa and
the control of transboundary movements of hazardous wastes
within Africa.
1991 1993
Convention on Biological Diversity 1992 1996
The United Nations Framework Convention on Climate 1992 1996
15
The first phase of LVEMP ended in December 2004. The second phase will start in December 2007.
Kenya, Uganda and Tanzania entered into an agreement for the first phase to restore Lake Victoria‟s
ecosystem, but the second phase will also include Burundi and Rwanda.
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Change
United Nations Convention to Combat Desertification 1994 1997
Kyoto Protocol 1997 -
Protocol on liability and compensation on damages resulting
from transboundary movements of hazardous wastes and their
disposal
1999 -
The Cartagena Protocol on Biosafety to the Convention on
Biological Diversity
2000 2003
The Convention to Protect Wetlands of International
Importance (Ramsar Convention)
1999 2000
3.2 Policies and Legislation
The National Environmental Policy (NEP) was issued in December 1997. NEP
recognises the need to address sectoral and cross-sectoral issues in order to undertake
environmental management comprehensively in all sectors at national and local
government levels.
Box 3.3: National Environmental Policy, 1997
The Policy provides the framework for making fundamental changes that are needed to bring
environmental considerations into the mainstream of decision-making in Tanzania. It first and foremost
identifies the six most urgent environmental problems for action:
Land degradation
Lack of accessible, good quality water for both rural and urban inhabitants;
Environmental Pollution
Loss of wildlife habitats and biodiversity;
Deterioration of aquatic systems; and
Deforestation.
It provides policy guidance to determine priority actions, and provides for monitoring and regular
review of policies, plans, and programmes. The overall objectives are to:
Ensure sustainability, security and equitable use of resources for meeting basic needs;
Prevent and control degradation of land, water vegetation, and air;
Conserve and enhance Tanzania‟s natural and manmade heritage, including the biological diversity
of the unique ecosystem;
Improve the condition and productivity of degraded areas including rural and urban settlements;
Raise public awareness and understanding of the essential linkages between environment and
development, and to promote individual and community participation in environmental action; and
Promote international cooperation, and expand Tanzania‟s participation and contribution to
relevant bilateral, sub-regional, regional, and global organisations and programmes, including
implementation of Treaties.
NEP states that environmental management is a multi-sectoral and multi-disciplinary
undertaking, where success depends on the cooperation of all government agencies
(national, regional and local). The Policy states that greater institutional capacity is a
prerequisite: for the conception, planning and management of appropriate policy
proposals, policy analysis and the formulation of strategic policy decisions; and for
conducting effective management of any major component of the environment. The
Policy also points to the cause-and-effect relationship between poverty and
environmental degradation.
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Environment related Policies and Acts are shown in Box 3.4 and 3.5 respectively.
There are a substantial number of policies and acts, creating some fragmentation,
regulating urban development and environmental management, whereas forestry for
instance has a well-defined clear and comprehensive regulatory framework.
Box 3.4: Environment related Policies
National Land Policy (1995)
Industrial Policy (1996)
Agricultural Policy (1997)
Fisheries Policy (1997)
Beekeeping Policy (1997)
Minerals Policy (1997)
Health Policy (1998)
National Forest Policy (1998)
Tourism Policy (1999)
National Human Settlements Development Policy (2000)
National Water Policy (2002)
Rural Development (2003)
Wildlife Policy
Energy Policy
National Science and Technology Policy
National Transport Policy
National Trade Policy
National Investment Policy
Box 3.5: Environment related Acts
Factories Ordinance* (1950)
Town and Country Planning Ordinance* (1956)
National Industries and Licensing and Registration Act* (1967)
Wildlife Conservation Act (1974)
Tanzania Bureau of Standards Act* (1975)
Local Government (District and Urban Authorities) Act* (1982)
National Land Use Commission Act* (1984)
Water Act* (1989) amended in 2004
Tanzania Investment Act* (1997)
Mining Act* (1998)
Land Act* (1999) amended in 2004
Village Land Act (1999)
Energy and Water Utilities Regulatory Authority Act* (2001)
Forest Act (2002)
Beekeeping Act (2002)
The Occupational Health and Safety Act* (2003)
Industrial and Consumer Chemicals Act* (2003)
Note: *Acts concerned with urban environmental management.
The National Environmental Action Plan (NEAP) dates back to 1994. Key issues
relate to strengthening of the environmental management capacity of different
stakeholders and creating an enabling legislative and regulatory framework. The main
problems encountered during implementation were lack of coordination and
insufficient human and financial resources to implement the NEAP. A new NEAP is
on the agenda in line with EMA.
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The EMA was passed by Parliament in November 2004, assented to by the President,
February 2005 and became effective in July 2005. EMA is a framework Act that will
override all current legislation related to environmental management (see Box 3.6).
There will be a substantial need for harmonisation of existing Acts with EMA. EMA
builds on NEP‟s vision of a consistent and coherent environmental management
framework.
Box 3.6 The Environmental Management Act
The Environmental Management Act:
Defines mandates for: national, regional and local level institutions; civil society; private
sector; and other stakeholders.
Contains provisions for the establishment of the National Environmental Advisory
Committee.
Contains provisions for the establishment of environmental sections/offices at all government
institutions down to the village level.
Provides VPO-DoE and NEMC with the overall coordination and overseeing responsibilities.
Includes provisions for environmental planning at national, sectoral, and LGA levels.
Includes provisions for management of the key environmental challenges: land; aquatic
systems including wetlands and coastal zones; pollution and waste; wildlife, forests and
fisheries resources and biodiversity.
Defines key environmental planning and management tools including EIA, SEA; and provides
for environmental quality standards, economic instruments, and meeting of international
obligations.
Provides directives for environmental restoration and conservation.
Includes provisions for environmental analysis and record keeping, environmental
information, education, research, public participation in environmental decision making.
Provides directives on enforcement and compliance.
Contains provisions for the establishment of the Environmental Appeals Tribunal.
Includes financial provisions for a National Environmental Trust Fund.
Two national environmental management regulations have been developed: 1)
Registration of Environmental Experts Regulations; and 2) Environmental Impact
Assessment and Audit Regulations. Other regulations and guidelines are planned to be
prepared.
The most recent policy concerned with urban development planning is the National
Human Settlement Policy of 2000 (see Box 3.6). An analysis of the current urban
policy, legal and institutional framework revealed that the responsibilities are
scattered. Inconsistencies and gaps exist in the policy and legal provisions, and there
is limited perception among most of the involved institutions about urbanisation in its
broadest sense – meaning the dynamics of the urbanisation process, rather than the
management of the physical urban space. There is also a substantial discrepancy
between the policy objectives and the actual situation in the urban centres. Therefore,
it has for some years been part of the strategic plan of PMO-RALG to develop an
urban development policy.
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Box 3.7: National Human Settlement Development Policy, 2000
The overall goals for the Policy are: to promote development of human settlements that are sustainable;
and to facilitate the provision of adequate and affordable shelter to all income groups in Tanzania. The
main Policy objectives are to:
Make serviced land available for shelter and human settlements development to all sections of the
community including women, youth, the elderly, disabled and disadvantaged;
Promote a balanced development of a clearly defined hierarchy of settlements in promoting human
settlements development;
Promote and include the participation of the private sector, civil society, co-operatives, and
communities in planning, development and management of human settlements;
Protect human settlements and of ecosystems from pollution, degradation and destruction in order
to attain sustainable development;
Ensure planning legislation, building regulations, standards and other controls are consistent with
the capabilities, needs and aspirations of the various sections of the population;
Assist the poor in acquiring decent shelter;
Streamline the legal and institutional machinery for human settlements development.
In section 4.1.9, „environment‟ is defined to mean the physical, economic and social conditions.
An issue raised is that Urban Master Plans in Tanzania have not been as effective as intended, which
has rendered these to be an obsolete tool for guiding land-use changes.
In section 4.3.10, environmental management is defined to include: solid and liquid waste
management; industrial effluent discharge and air pollution; air pollution from transport and use of
fuel-woods and charcoal; encroachment on fragile and hazardous lands; and unauthorised mining –
especially quarrying of sand.
The key instruments for forest management are: the National Forest Policy (1998), the
NFP (2001), the Forest Act (2002), the Land Act (1999), and the Village Land Act
(1999). The NFP (2001-2010) was designed to promote utilisation and trade of forest
products by managing forests sustainably without compromising environmental and
cultural values. The primary strategy for realising the objective is to clarify land
tenure, to provide a transparent and legal framework, and to promote PFM in
collaboration with communities, civil society and the private sector. PFM is therefore
implemented under the NFP, which provides the framework for all forest sector
planning over the period 2001-2010.
Box 3.8: National Forest Policy and Forest Act
The National Forest Policy (1998) contains a number of statements in support of PFM. The Forest
Policy aims at creating an enabling environment for the development of the forestry sector by
decentralising responsibilities for forest management to local communities and district councils,
separating the normative and service delivery functions of MNRT through the establishment of an
executive agency, the Tanzania Forest Service (TFS), commercialising and privatising the management
of the forest plantations, and promoting greater involvement of the private sector and civil society in
sustainable forest management.
The Forest Act (2002) provides the legal framework to implement the National Forest Policy. The Act
aims to encourage and facilitate the active involvement of Tanzania‟s citizens in the sustainable
planning, management, use, and conservation of forest resources through the development of rights and
responsibilities to manage forest resources at the lowest possible level. The Forest Act supports PFM
by enabling local communities to declare – and ultimately gazette – village, group or private forest
reserves in unreserved forestland (Community Based Forest Management). The Forest Act provides for
registration through which villages groups or individuals may secure jurisdiction over forests or take on
management functions in central and local government forest reserves through the establishment of
Joint Forest Management (JFM) Agreements with the appropriate government authority.
ESPS Tanzania
34
3.3 Institutions, Stakeholders and Coordination Mechanisms
The EMA outlines the future government administration and institutional
arrangements for national, Regional and local environmental management. EMA also
outlines the environmental management role of civil society and the private sector. To
attain the actual fulfilment of the institutional arrangements and mandates requires
concerted efforts over an extended period of time, and what is presented below is
therefore not a fair description of the current situation.
Government institutions involvement in environmental management
Vice President’s Office
The Minster of State for Environment within the VPO is overall responsible for
matters relating to environment and will in that respect be responsible for articulation
of policy guidelines necessary for promotion, protection and sustainable management
of environment in Tanzania. The Minister may issue general guidelines to sector
ministries, government departments, City, Municipal or District environmental
management committee, agency or any other public or private institution necessary
for implementation of EMA.
The two core institutions for environmental management in Tanzania are: DoE and
National Environmental Management Council (NEMC). While DoE is the entity
responsible for policy matters, and not an implementer; NEMC is the technical entity,
responsible for enforcement etc. Both are overseeing and coordinating the
implementation of EMA, and EMA elaborates very specifically the functions for DoE
and NEMC, whereas the functions of sector ministries, Regional Secretariats, and
local governments are referred to in generic terms. DoE and NEMC functions are
presented in Box 3.10 and Box 3.11 respectively.
Box 3.9: DoE functions as defined in EMA
The DoE‟s functions are:
Coordination of various environmental management activities being undertaken by other agencies;
Advise the government on legislative and other measures for the management of the environment;
Advise the government on international environmental agreements, monitor and assess activities
being carried out by relevant agencies in order to ensure that the environment is not degraded by
such activities;
Prepare and issue a report on the State of Environment in Tanzania;
Coordinate issues relating to articulation and implementation of environmental management
aspects of other sector policies; and Coordinate issues relating to articulation and implementation
of the National Environmental Policy.
Prepare and submit a National Environmental Action Plan
Box 3.10: NEMC objective and functions as defined in EMA
The objective of the NEMC is to undertake enforcement, compliance, review and monitoring of EIAs
(and SEAs for large projects, ref. Section 105), and shall in that regard facilitate public participation in
environmental decision-making. NEMC shall, i.a.:
Undertake and coordinate research and surveys;
Review environmental impact statements and recommend for approval;
Identify types of projects and programmes for which environmental audits and monitoring must be
ESPS Tanzania
35
conducted; and
Enforce and ensure compliance of the national environmental quality standards, etc.
NEMC can delegate its enforcement and monitoring responsibilities to MDAs and LGAs.
In 1998 the Vice President‟s Office (VPO) launched the ILFEMP. The overall
objectives were to establish an analysis for an informed decision on a future
framework for environmental management (Phase I) and to draft a new framework
Environmental Management Bill (Phase II). With a focus on institutional and legal
issues, ILFEMP was implemented in a highly participatory and consultative manner,
involving a wide range of stakeholders in both the public and private sectors. Several
different techniques were used, including national and decentralised consultative
meetings, technical studies and an extensive literature review. A number of studies
and consultation were made through this project. All these studies were summarised
in the document Institutional and Legal Framework for Environmental Management
Project (ILFEMP -Phase I -Final Report- Volume I and Volume II).
There were four options considered for the structure of central ministerial
responsibility for the environment:
Option one: A Ministerial level responsibility located in one of the three
powerful central offices without Statutory Bodies
Option two: A free standing central ministry, without Statutory Bodies
Option three: A ministerial level responsibility located in one of the three
powerful central offices with most central environmental management
functions delegated to Statutory Bodies
Option four: A free standing ministry with two Statutory Bodies.
Taking into account the need to put environment high on the agenda, option 3 was
taken with some modification. The EMA which enacted and came on operation in
2004 was based on this institutional framework.
The organisation structure of the VPO has been facing various changes since the end
of ILFEMP. The Environmental Division currently comprise three sections (EIA,
Pollution Control and Policy and Planning). The Environmental Management Act ,
No 20 of 2004 and the emphasis provided by the President of United Republic of
Tanzania, which has gone to the extent of creating a cabinet committee on
environment, reflects a high level concern for the environment. This in turn has led to
an effort to delineate the environment functions more clearly and focus on basic
environmental issues like: Biodiversity and Environmental Conservation;
Environmental Management of Pollution and Environmental Management of
Chemicals; Environmental Education and Research and Environmental Coordination.
These proposed Sections backed up by relevant professionals will provide a
coordinating team that will enhance Tanzania with necessary dynamism to change the
environment. It is highly likely that they will be approved in the very near future.
ESPS Tanzania
36
The total DoE staff will rise from 37 in the three sections of the present structure to at
least 64 once the new structure is in place. This represents more than a doubling of
capacity.
The NEMC is not undergoing restructuring (this was undertaken as part of the
strategic plan 2005-2009) but its capacity will be enhanced by a significant increase in
staff under the same structure. NEMC is structured with 4 functional directorates:
Environmental Research and Planning; Environmental Compliance and Enforcement;
Environmental Impact Assessment and, Environmental information, Information,
Communication and Outreach. These functional directorates are supported by four
divisions: Administration and Personnel; Finance and Accounts; Legal and, Audit.
The total technical staff will be 85 (increase from 50 technical staff at the present
time) with a supporting staff of 39 and total staff of 124. This represents a70%
increase in staffing.
Sector ministries
Each sector ministry/MDA16 shall establish an environmental section, and it is still
under discussion, whether this can be in the form of existing units and focal points, or
whether it requires new appointments. The functions and duties of the sections is to
ensure EMA compliance by the sector ministry. Each sector ministry shall, i.a.
prepare and coordinate the implementation of sector environmental action plans at the
national level, undertake analysis of environmental impacts of sectoral legislation,
regulations, policies, strategies, plans, and programmes through SEAs, and oversee
the preparation and implementation of EIAs required for investments in the sector.
Each sector ministry shall moreover prepare and submit a bi-annual report
concerning the state of the environment for the sector.
Regional Secretariats
Regional Secretariats are responsible for coordination of all advice on environmental
management in their respective Regions and they are obliged to liaise with DoE and
NEMC on the implementation and enforcement of EMA. A Regional environmental
management expert shall be appointed, who will be charged with the responsibility of
advising LGAs on matters relating to the implementation and enforcement of EMA.
Local Government Authorities
In each local government authority, a standing committee will be appointed as the
City, Municipal or District environment management committee – in case it is not
already there. Each City, Municipal, District and Town council shall moreover
designate an environmental management officer, who will often be the natural
resources officer too, and who among others shall ensure enforcement of EMA and
advise the environmental management committee on matters relating to environment.
The LGA is obliged to prepare periodic reports on the state of the local environment,
monitor the preparation, review and approval of EIAs for local investments, review
by-laws on environmental management, and report to DoE and NEMC on the
implementation of EMA. Each LGA shall, with respect to its geographical area of
jurisdiction, prepare an Environmental Action Plan below the National Environmental
16
Despite MNRT‟s significant natural resources management responsibilities, it is not specifically
mentioned in EMA, but is perceived as a sector ministry.
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37
Action Plan. PMO-RALG provides the interface between LGAs and sector ministries
via the Regional Secretariats.
PMO-RALG adopted a new structure from July 2005. The structure distributes
responsibilities for supporting local government development amongst 8 different
divisions. Prior to the restructuring, PMO-RALG had three core divisions of Regional
Administration, Local Government and Institutional Development. The current
structure has therefore introduced new divisions to enhance service delivery
performance. The UDEM component description provides a capacity analysis of the
PMO-RALG as well as an update on the process of restructuring.
Advisory and coordinating bodies
National Environmental Advisory Committee (NEAC)
The NEAC is a new committee to be established in line with EMA, and it is an
advisory body to the Minister. The NEAC shall advise on matters related to
environmental affairs in the country. NEAC shall be composed of members whose
experience shall reflect the various fields of environmental management in the public
and private sectors and civil society. It cannot include DPs.
Parliamentary Committee and Cabinet Committee
Complementary to the already existing Parliamentary Committee on Natural
Resources and Environment, the President has established a Cabinet Committee
responsible for environmental issues, led by the Vice President. The Cabinet
Committee will oversee further policy developments and the implementation of
emergency measures.
Environmental Working Group
For each sector, GoT has established a Working Group (WG), which is a government-
led, national level forum for policy and strategy discussions and coordination of GoT
and DP interventions. For environment, the group is referred to as the Environment
Working Group (EWG). EWG consists of all relevant MDAs, key Development
Partners and Civil Society representatives. It meets on a monthly basis, and is chaired
by VPO. The EWG was initially established as the critical link between the
environment sector and national policy, planning and monitoring processes – e.g. with
regard to representation of the environment sector in MKUKUTA‟s three cluster
groups. It continues to focus on this, which also includes work on poverty-
environment indicators, environment in the Performance Assessment Framework for
General Budget Support, Public Expenditure Reviews etc. However, EWG is also
discussing the implementation of EMA, the strategy for urgent actions etc.
National Wetlands Working Group
The importance and multi-sectoral nature of wetland management was recognised by
the official creation in 2001 of the National Wetlands Working Group (NWWG)
comprising of 30 key wetland stakeholders primarily at the central level. In May
2003, the GoT established the National Wetland Steering Committee (NAWESCO)
with representation of eight ministries at PS level to provide high level coordination
on policy and management issues related to wetlands.
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38
DP Group-Environment and Natural Resources
The development partners in the environment sector form a group referred to as DP
Group-Environment and Natural Resources (DPG-E), in line with other sector groups
under the Develpoment Partner Group (DPG) structure. The DPG-E ToR, which are
from before the prominence of the harmonisation and alignment agenda, are “to
increase the effectiveness of DPs efforts to support a concerted Environment and
Natural Resources agenda and provide coordinated contributions and inputs”. Besides
information-sharing and coordination, DPG-E has also conducted a number of joint
studies and analytical work, e.g. on the poverty-environment linkages, and taken joint
action in the form of joint missions, joint meetings with GoT and joint publication of
statements. DPG-E also appoints members to various committees.
DPG-E has mapped the assistance to the sector (see below), in order to improve the
division of labour. A DPG „Architecture Group‟ has been established to look into the
mechanisms and principles for functioning of the various DPGs and will shortly
publish their findings and recommendations. This will further influence how DPGs
will organise themselves, e.g. addressing mandates for chairmanship, communication
procedures, etc. The DPG-E meets monthly. Danida currently holds the chairmanship
for the DPG-E.
The joint work in DPG-E is meant to both inform the members how their support can
be better harmonised and aligned and to inform the dialogue with GoT and the EWG.
The aim of providing information and argumentation related to environmental
management is meant to remain a permanent feature of the DPG-E, to enable it to
play a continuing constructive role. However, it is not meant to substitute for the
development of a strong domestic (Tanzanian) civil society voice.
In the process of further development of the Tanzanian Joint Assistance Strategy
(JAS, ref. Section 3.5), Danida may be assigned as the lead donor for the environment
sector for a longer period.
Civil society and the private sector:
The Civil Society Organisations‟ (CSO) (Non Governmental Organisations / (NGOs)
Community Based Organisations (CBO), community representatives) roles in
environment and natural resources management are articulated in EMA, in many
government policies, and in the public sector reforms. EMA articulates public
participation in policy-making and planning processes. Section 11 on the National
Environmental Advisory Committee states that it shall include members from the
public and private sectors and civil society. EMA generally makes reference to the
involvement of other institutions, the public and individuals, which opens up for a
pro-active participation of civil society and the private sector.
The environment sector civil society in Tanzania is developing, but is at present
relatively weak in terms of resources and capacity, amongst others confirmed by a
consultancy conducted by COWI for Danida “Assessment of Options for Civil
Society Support within the Environment Sector Programme Support in Tanzania,
April 2006”. The Civil Society does not have a broad-based domestic constituency
and its voice is not very strong. The Civil Society is fragmented, varying from CBOs
operating at the local level to Tanzanian branches of International Non-Governmental
Organisations (INGOs) at the national level. There are few coalitions linking civil
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39
society organisations vertically and horizontally. An overview conducted by the Royal
Danish embassy (RDE) in late 2004 showed that a plethora of organisations exist, but
many of which had a limited focus, e.g. in one district and on one issue only.
Furthermore, civil society in environment is often considered to include mainly the
“green” NGOs/CBOs, whereas legal aid NGO/CBOs in land management, social
NGOs/CBOs in slum areas etc. are considered to be outside the environment sector –
despite the potential contributions they can provide. In addition the elected bodies,
and the civil society they represent, from local councils to the national assembly, is
often not targeted for cooperation by the NGOs/CBOs.
The present Danida support to the environment sector includes the involvement of
civil society in urban environmental management and natural resources management
– mainly as service providers – in the current components and projects within these
fields. However, due to a combination of constraining factors, this involvement has
not yet fully developed as anticipated. Danida has also provided support to civil
society organisations outside the current projects and components e.g. from the local
grants authority and through the Danida‟s NGO Window‟s support to Danish NGO
projects with local partnerships – among others the Danish Hunters‟ Association, Care
and Birdlife. In many cases this support is focusing on a limited geographical area,
and only to a limited extent on advocacy – a situation that is reflecting the general
situation regarding civil society in environment in Tanzania.
The earlier mentioned consultancy gave recommendations on how to improve the
quality of the Danida support to civil society, e.g. regarding how the current projects
and components can enhance the work with civil society. These should be taken on-
board in the new ESPS. The Consultancy also pointed at a few promising
opportunities for networking (Tanzania Natural Resources Forum), for more emphasis
on the advocacy side (Policy Forum), for linking to the elected bodies ((Parliamentary
Strengthening Programme), for capacity building and for domestic funding
(Foundation for Civil Society) – all of which could be utilised by ESPS.
An example of one of the recommendations is Foundation for Civil Society (FCS).
FSC was established in 2002, with the aim to improve civil society‟s capacity for
participation and service delivery. FSC provides grants and capacity building support
to civil society organisations to enable disadvantaged and vulnerable citizens to access
information and understand policies, laws and their rights; engage effectively in
policy formulation and monitoring of poverty reduction; and contribute to social
development and to constructively hold the government and private sectors to
account. FSC is financially supported by a number of bilateral development partners,
including Danida through its governance funding. Unfortunately, the environment
sector civil society has so far utilised the opportunities provided by the FCS only to a
limited extent.
The private sector also play an important role in the implementation of EMA, as it is
the private sector and its activities who is the subject for implementation, and private
sector will facilitate implementation of EMA e.g. by initiating and financing EIAs for
their projects, by reacting to the economic instruments etc. It is therefore pertinent that
awareness raising for the private sector within the respective fields e.g. mining,
agriculture etc., is conducted, in order to inform about rights and responsibilities, as
well as opportunities and benefits of complying with the Act.
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40
The involvement of the private sector is part of Danida‟s present support to the
environment sector. The private sector is primarily involved in the urban support in
construction of investment projects through competitive bidding. The private sector
could also be involved in public-private partnerships concerned with provision of
public services and maintenance of public infrastructure, e.g. solid waste
management, water supply, sanitation, energy etc. Village level natural resources
groups (e.g. PFM forests groups) could enter into partnerships with the private sector
concerning the utilisation, processing and marketing of the natural resources and
derived products.
3.4 Financing of Environmental Activities and Investment Plans
A Public Expenditure Review of Environment was undertaken in 2004 with the
objective of establishing levels, trends and distribution of environmental expenditure
and revenue in relation to Tanzania‟s environmental priorities, and poverty reduction
strategies (Vision 2025 and the National Poverty Reduction Strategy, 1997). A second
PER has been in the pipeline since March 2005, but has so far not materialised.
Availability of detailed break-down of data was a major limitation to the conduct of
the first PER. In particular, data on revenue and expenditure were in many cases not
available in the sector ministries.
The estimates of the contribution of the forest sector to GDP differ. Most estimates
are between 2 and 3% of GDP. The Economic Survey17 quotes a combined average
percentage contribution per year for forestry and hunting to be 3.3% of GDP over the
period 1995 to 2005. In comparison, agriculture contributed 35.3%, tourism 13.0%,
and fisheries 2.5%. On the other hand, recent estimates, that also include illegal use of
forest resources, as well as tourism-related income, suggest that the forest sector‟s
total annual contribution could be as high as 10-15% of total GDP.
While environmental resources contribute significantly in terms of revenue and
national income, the environmental sector is not allocated sufficient budgets to
maintain sustainable environmental management. As regards fund allocations, the
PER shows that actual disbursements do not match sector requirements, in the case of
DoE and NEMC (see Table 3.1).
Table 3.1: Budget allocation and expenditure at central level (TSZ million)
Institution 2000/01 2001/02
Budget
Requirement
Approved
Estimates
Actual
Release
Actual
Expenditure
Budget
Requirement
Approved
Estimates
Actual
Release
Actual
Expenditure
DoE 277.5 172.5 110.3 110.3 583.8 178.2 178.2 178.2
NEMC 1,100.0 256.7 256.7 256.7 1,500.0 527.8 527.8 527.8
Source: VPO, 2004
The PER identified the following key issues for improvement of the funding situation:
Mismatch between revenues collected and allocations to the environmental
sector;
Inadequate environmental revenue collection due to under-pricing of
environmental resources and disregard of replacement cost;
17
GoT. Economic Survey for 2003, Planning and Privatisation Commission, 2004
ESPS Tanzania
41
The environmental sector is not allocated sufficient budgets to maintain
sustainable environmental management;
Actual disbursements to MNRT, DoE and NEMC do not match sector
requirements;
Inadequate implementation of Multilateral Environment Agreements;
Inadequate capacity for environmental management at sectoral and local
government levels; and
Weak awareness of poverty-environment linkages.
The findings of the earlier quoted WB study on natural resources and growth and
poverty reduction18 show the three revenue generating sectors, forestry, wildlife and
fisheries, are making important contributions to both formal and informal and
subsistence economies. However, only fisheries is a net contributor to Treasury, while
forestry and wildlife are subsidised through government allocations to cover their
recurrent expenditures and through foreign grant allocations to finance a major part of
their development budgets. This is mainly due to the limited official revenue
collection, as it is believed that only a small fraction of the revenue due is collected
(some estimates as low as 5% of potential revenue in the forest sector) and registered.
It is not due to exaggerated budgets in these respective institutions.
National budget allocations to the forest sector have generally been inadequate and
subject to fluctuation. While FBD‟s allocation was 50% of the total MNRT budget in
1996-07, it decreased to 18% in 1998 due to the introduction of the Forestry Retention
Scheme. The Retention Scheme allows MNRT to retain 70% of the collected forest
revenues. The remaining 30% is transferred to Treasury. After deduction of 14% for
MNRT‟s administration, the remaining 56% is allocated to FBD to finance its
recurrent expenditures (except for staff salaries that are paid by the Treasury) and
some development expenditures. LGAs are allowed to retain 5% of the collected
revenues. There are indications that the forest sector suffers from under-financing, not
only at the central level but also at the local level. The approved local government
budgets are much lower than the requested budgets and actual disbursement is even
lower.
Table 3.3 indicates the annual revenues collected by MNRT during 2003 and 3004.
Table 3.4 indicates the budget allocated to MNRT and the share received of the
requested budget.
Table 3.2: MNRT annual revenues (TZS billion) Sub-sector 2003 2004
Forestry 5.29 5.82
Wildlife 9.17 9.55
Fisheries 6.99 9.70
Tourism 0.83 0.96
Note: Includes revenues collected and retained at source.
Source: MNRT 2004
18
WB. Summary Paper: Study on Growth and Environment Links for Preparation of the Country
Economic Memorandum, Natural Resource Based Growth, May 2005.
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42
Table 3.3: MNRT Allocated budget and share of requested budget
Sub-sector 2002-03 2003-04
TZS bn % TZS bn %
Forestry and Beekeeping 4.898 24 7.634 29
Wildlife 6.593 33 7.587 29
Fisheries 3.688 18 4.648 18
Tourism 2.208 11 2.881 11
Other - -
Total MNRT 20.243 26.257
Note: The amounts are recurrent expenditures only.
Source: MNRT 2004
3.5 Donor Support, Interventions and Environmental Coordination
GoT took an initiative in 2004 to embark on the development of a Joint Assistance
Strategy (JAS) for its multiple development partners. In Rome in 2003 and later in
Paris 2005, development partners committed themselves to increase harmonisation
and alignment by reducing multiple country strategy processes, gradually shift
assistance from projects to basket funding and budget support, and as a consequence
increase predictability of aid flows and reduce the developing countries‟ and DP‟s
transaction costs. The JAS makes reference to the Paris Declaration on Aid
Effectiveness (March 2005) and the MKUKUTA and shares similar objectives. The
JAS is intended to have an impact on the individual donor‟s portfolios and use of aid
modalities, as well as strengthen the links between sector and macro level processes.
The JAS formally came into force July 2006.
The overall objective of JAS is to effectively implement MKUKUTA, that means to
contribute to sustainable development and poverty reduction by consolidating and
coordinating government efforts and DP support under a single government led
framework.
In order to reduce transaction costs for both the GoT and DPs, DPs will rationalise the
number of sectors or areas they engage in. At the same time, the number of DPs that
are „active‟ in a sector or thematic area will be limited to an appropriate level.
Partners outside a particular sector/area can nevertheless provide financial assistance
and will be represented by those DPs that are active.
As a supplement to JAS, DPs has drafted a Joint Country Analysis, in order to
eliminate and/or limit the individual agency analytic work, which informs the
individual country programmes. In essence, the country programmes will thus be
harmonised and aligned. DPG-E has given input to the Joint Country Analysis, and it
therefore includes sections on environment, forestry, fisheries, wildlife, and
urbanisation. Furthermore, the Danish country strategy in the context of the JAS was
recently presented to the Board of Danida.
The EWG has, under the leadership of VPO-DoE, conducted JAS discussions, and
prepared an input to the JAS‟s action plan, which is expected to outline the
implementation sector by sector. It amongst others mentions:
The Environmental Management Framework is largely in place, but alignment
of sector ministries, LGAs and CSOs environmental plans, strategies and
programmes with EMA remains;
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43
The difficulty in harmonising and aligning global environmental initiatives
etc., and the transboundary aspect of environment making it necessary to work
beyond the political administrative boundaries;
Capacity Building for implementation of EMA is the major challenge, but so
is the TA absorption capacity;
The need for increased attention to the brown environmental sub-sector, based
on a mapping of the current division of labour;
Promotion of the budget support modality is relevant, but the environment
sector has a “permission” to earmarked funding (see later), and pooled
earmarked funding is seen as an initial step towards budget support;
Increased environment sector participation in the overall national planning and
budget process and the PER Cluster Working Groups – amongst others to
ensure commitments from government in resource allocation to the sector;
Revision of EWG‟s mandate in light of the establishment of the Cabinet
Committee on Environment and the National Advisory Committee.
As mentioned above the Minister of Environment has been mandated19 to ensure
financing beyond the preferred modality – direct budget support.
As also mentioned above the DPG-E has conducted a mapping exercise creating an
overview on how DPs distribute their environmental assistance to sub-sectors and
geographically (see Table 3.4).
Table 3.4: Key DPs current engagement in the Environment Sector
EC
WB
UN
DP
FA
O
UN
Hab
itat
UN
IDO
/IL
O
Bel
giu
m
Den
mar
k
Fin
lan
d
Ger
man
y
Net
her
lan
ds
No
rway
US
A
Beekeeping x x
Wildlife x x x x x x
Ecosystems x x
Biodiversity x
Wetlands x x
Forestry x x x x x x
Fisheries x x x x
Land management x
Water management x
Energy x
Marine/ Coastal x x x x
Lake management x x
Sanitary control x
Water/ sanitation x x
Urban environment x x
Sewerage x
Waste management x
Rural development x
Almost all DPs support the green environmental sub-sector; the blue sub-sector is
primarily supported the multilateral DPs (WB and European Commission (EC)); and
19
Speech by Minister to DPG-E 25/4 2006, and confirmed since in various meetings
ESPS Tanzania
44
UN-Habitat and Denmark largely cover the brown sub-sector. This picture, of number
of DPs per sub-sector, is further confirmed by the distribution of funding volumes,
which also indicates large volumes to the green and blue part of the sector and limited
funding to the brown side. Thus the indication that there is a need to balance the
sector financing by drawing attention to the brown part of the sector.
The mapping also shows, that all Tanzania‟s Regions receive some assistance and 94
out of 120 Districts receive assistance. Nevertheless, the overall picture is that
development assistance is very unevenly distributed geographically among the
Regions/Districts.
3.6 Danida’s Current Support to the Environment Sector
Danida‟s support to the environment20 falls under two main categories: urban
environmental management and natural resources management – the latter comprising
forestry and wetlands. A number of reviews of the support have been conducted,
please refer to the introductory chapter.
Urban Environmental Management (UEM)
The Danish support to UEM is based on Tanzania‟s “Sustainable Cities Programme”
guided by the UN-Habitat concept. The support was initiated in 1998 and has covered
six Cities and Municipalities: Iringa, Tanga, Moshi, Morogoro, Arusha and Mwanza.
The support to Iringa, Moshi and Morogoro is ongoing but will cease during 2006-07.
The support has been/is concerned with development of environmental profiles,
environmental planning and management (EPM), development of strategies and
action plans, of Environmental Information Management Systems, and
implementation of demonstration projects, including Cleaner Production projects. The
activities have been touching upon upgrading of unplanned settlements, including
demarcation and titling, water supply, storm water drains, solid waste management
etc. The activities are undertaken by thematic and neighbourhood based working
groups with representatives from the Municipality, civil society, and the private
sector. Working groups bring together the people who are affected by the
environmental problems, the people who cause the problems, and those who know
about how to solve the problems. Support is also being provided to the Urban
Authorities Support Unit in PMO-RALG, in order to provide technical backstopping
to the supported urban centres and to support the development of a more
comprehensive framework for UDEM.
Forests
The Danish support to forestry began in 1999 in Iringa Region with two projects, and
continued with projects in Lindi Region. The projects promoted the active
participation of forest-adjacent communities in the protection, management and use of
forest resources in natural woodlands, both within and outside reserves. The projects
were implemented in accordance with the new Forest Policy (1998), the Land Act
(1998) and the Village Land Act (1998).
20
For further information, please consult www.ambdaressalaam.um.dk/en
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45
The Participatory Forest Management Component (PFM) was approved in December
2002 and launched in June 2003 for a five-year period with a budget of DKK 57.5
million. The PFM Component is contributing to a comprehensive reform of
Tanzania‟s forest administration and management – placing emphasis on participatory
management systems of natural and other forest resources. PFM is provided for in the
new Forest Act (2002). The component is implemented through government systems,
whereas the previous projects partly made use of parallel systems. The shift in
implementation mode has delayed implementation due to Government capacity
constraints, and the component has been extended at no-cost until 2009.
Wetlands
The Danish support to sustainable wetlands management began in earnest with the
launching of the Sustainable Integrated Management of the Malagarasi-Muyovozi
Ramsar Site (SIMMORS) Project in February 2001 to assist Tanzania in the
fulfilment of its obligation under the Ramsar Convention. The Project will last until
June 2007 and has a budget of DKK 31.4 million. In parallel, Danida supported
capacity development in the Wetlands Unit of the Wildlife Division (WU-WD), for a
three-year period, which ended in 2003.
The SWM Component was approved in October 2003 and launched in July 2004 with
a five-year implementation period, scheduled to end in June 2009. The Component
budget is DKK 34.3 million. The execution of the Component did not proceed with
the intended rate of implementation for a number of reasons related to institutional
constraints in WU-WD, the conceived implementation modality, and too ambitious
targets. The under-spending during the initial years – based on a budget review –
suggests that the implementation period could be extended until June 2011 without
budgetary implications. The SWM Component will not formally become part of the
ESPS21, meaning it will not be included in the 180 million DKK budget. Letters have
been exchanged between WU-WD and Danida concerned with the extension of the
implementation period to June 2011, and the extension is thus approved on both sides.
The SIMMORS activities will be incorporated in the SWM Component from July
2007. It is expected that a mid-term review will take place in September 2007 to look
into the remaining implementation period.
The Component Document, October 2003 will continue to provide the framework for
implementation until June 2011 – although a number of changes have occurred as
regards the implementation arrangement in order to ensure consistency with the
evolving local governance framework, e.g. integration into the district planning
system, cooperation with PMO-RALG. Another change has been the approval of
EMA. EMA has in its Clause 56 specific requirements for sustainable management of
protected wetlands and stipulates sector ministries‟ responsibility in their respective
areas of jurisdiction.
There is little doubt that isolated external support to wetlands management seen in the
long term perspective is not feasible. Wetlands management is an integrated part of
environmental management and is best handled as such. Accordingly, wetland
management should be seen as a component of the implementation of EMA. Viewing
21
Danida Programme Committee recommends that the SWM is not being considered as a component
in the new ESPS, but as an old component under an exit strategy (Ref. Dan-E 2006b).
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wetlands management in the context of EMA implementation, would facilitate the
needed integration and at the same time EMA implementation would gain the full
benefit of the lessons learned and structural and institutional achievements in wetlands
management – fully acknowledging the fact that MNRT has the mandate and the
experience.
The SWM component objectives and outputs will remain unchanged, but will be
interpreted in relation to ongoing governance changes, including a reflection on the
EMA requirements.
The piloting of sustainable wetlands management will continue in selected wetland
areas in Mbeya and Iringa Regions and at two Ramsar sites. The National Wetland
Management Strategy is in preparation in order to guide sector ministries‟, LGAs‟ and
donors‟ activities in protected and non-protected wetland areas. The WU-WD‟s role
of implementing pilot projects in selected Regions will diminish and will gradually be
replaced by a coordination and monitoring/overseeing role.
Poverty-Environment Project
The Poverty-Environment Project 2003-2006, which is financed outside the Special
Environmental Assistance, is a joint project between UNDP, DfID, Danida and the
VPO. Its purpose is to integrate environment and livelihoods issues in the Poverty
Reduction Strategy Process, through increased awareness of the poverty-environment
linkages, improved access to- and utilisation of environmental data, and capacity
building for mainstreaming. While DfID has provided a full-time adviser (now phased
out), Danida has pooled it‟s funding with UNDP, which is administering the project.
The project has been very successful with the mainstreaming of environment in
MKUKUTA. The project has been positively reviewed by UNDP in October 2006,
but no continued funding from Danida is anticipated, as many of the activities will be
continued in the context of EMA implementation.
Climate change
A climate change project was initiated in early 2006 as part of Danida‟s Climate
Change Action Programme. The project aims at increasing awareness on climate
change and on appropriate responses – in the context of Tanzania‟s development of
the National Adaptation Programme of Action (NAPA). The NAPA process has been
ongoing in Tanzania for some years. The Danida support will add to the analytical
work, e.g. linking sector data to changes in rainfall and temperature, which will
inform the prioritisation of actions to be taken. The support has included funds for a
national conference on climate change with international participation, including
participation from the UNEP-Risø centre. Once NAPA is finalised, Danida may
finance specific, prioritised adaptation actions outside the programme context.
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Part II: The Environmental Sector Programme Support
4. PROGRAMME FRAMEWORK AND AGREED ASSISTANCE
4.1 Perspectives and Rationale for the Assistance
The Danida assistance to environment can be justified at various “levels”, from the
reasons for supporting the environment sector in Tanzania to reasons for supporting
the specific components, and reasons for the chosen implementation mode. A number
of strategic considerations in this respect are given below:
1. The ESPS will take advantage of the momentum gained with the political and
economic development path of Tanzania, and with the successful mainstreaming of
environment in MKUKUTA and the passing of EMA.
Tanzania has in recent years experienced an annual GDP growth in the range of 6-
7%. A GDP growth of this size is required in order to sustain both broad-based
economic growth and reduce poverty. Environment and natural resources have a
prominent place in this ambition.
GoT is making stable progress in reforming in a transparent and accountable manner
the public administration in terms of planning, implementation, and financial
management, and specifically pursuing a decentralisation by devolution policy. The
reforms have provided new opportunities for LGAs to address local development
issues and prioritise development interventions – including environmental
management. The introduction of the LGCDG and CBG provides both added
resources for new investments but also incentives to perform well.
The Government of president Kikwete has reiterated its commitment to market
oriented reforms, and this will give more space to other stakeholders in environmental
and natural resources management e.g. the civil society, including communities, and
the private sector.
MKUKUTA has successfully mainstreamed environment across the three broad
outcomes, which all sectors are seeking to contribute to. The mainstreaming has been
continued in the development of the monitoring system. The challenge is now to
follow up in further implementation
EMA provides an opportunity to substantially enhance environmental management in
Tanzania - coinciding with a high degree of political will to address environmental
challenges. Substantial changes are indeed required in the way environmental
management is perceived and practised in the public administration, private sector and
civil society in Tanzania in order to fully utilise the opportunities being provided.
EMA constitutes a comprehensive framework for environmental management at all
levels, in all sectors, and for coordination of environmental interventions both
horizontally at local, regional and national levels and vertically within the sectors –
the implementation of which will be guided by MKUKUTA and the National
Environmental Policy. As a result of putting a cooperation and coordination structure
in place, EMA provides much better prospects for design and implementation of
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interventions that promote sustainable development from a more holistic perspective,
both nationally and locally.
2. ESPS will balance interventions between natural resources management
interventions (green) and the urban/ industrial environmental management
interventions (brown).
In the current development of Tanzania, natural resources constitute an important
input to growth and poverty reduction. The pressure on resources are increasing,
emphasising the challenge of sustainable natural resources management. The
economic, social, and environmental developments are also evident in the rapid
urbanisation and growing industrial sector, posing increasing pollution problems. The
„brown issues‟ will increase in extent and severity over time, resulting in reduced
quantity and quality of the natural resources affecting livelihood conditions in both
rural and urban areas. Increased attention by GoT and DPs to the urban agenda is
urgently required.
In general, the legal framework for natural resource management is largely in place.
While EMA has provided a framework for environmental protection, more needs to
be done when it comes to policies and legal developments in the “brown” sector.
More also needs to be done in the development, implementation, and financing of
environmental interventions in urban and industrial areas. DPs funding of this area is
limited compared to other areas, and cannot be justified by lack of needs.
Danida has in its support in the past aimed at a balance between natural resource
management and urban environmental management, and this will continue. In terms
of budget, the allocation in ESPS to the brown environment will be relatively larger in
order to – in part – balance the fact that the on-going Danida funded activities, which
will remain funded well into the ESPS, are natural resource management
interventions. The relatively larger share of budget to urban environmental
management is also to redress the imbalance that exists in DPs‟ development
assistance that favours the “green” environment.
Finally, the implementation of EMA through its status as the overall national
environmental management framework will necessarily relate to the green, blue and
brown environments.
3. ESPS will aim at a link between policies, strategies and implementation in the
field, and ESPS will consolidate and sustain achievements made so far and
replicate these nationwide.
As mentioned earlier, the policies and legal framework are largely in place in the
forest sector, and ESPS will thus continue to contribute to a major roll-out of the
Participatory Forest Management. Experiences gained in previous Danida funded
projects, and in the life-time of the PFM component will inform any revisions of the
policies and legislation, and is in fact already informing development of regulation
and guidelines.
As regards ESPS urban environmental management interventions, field
implementation in the form of urban LGA investments is intended from the
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beginning, while an Urban Development Policy is under development. However, not
all urban LGAs are likely to access the support in the initial years, as it will be linked
to the LGCDG, and additional specific criteria are intended to only create investment
capacity in LGAs with a sound environmental management vision. So implementation
will most likely not be nation-wide from the onset, before the policy is in place, and
implementation will be informed by the policy. Past experiences with field
implementation in selected Cities, Municipalities and Towns, funded by Danida and
others, as well as new lessons, will feed into the UDEM Framework.
The implementation of EMA is guided by regulations, which will be gradually
developed, coinciding with actual implementation. Implementation in the field,
whether by MDAs or LGAs, is furthermore guided by the preparation of these
institutions environmental action plans and state of environment reports, in
accordance with EMA.
4. ESPS will fulfil commitments on harmonisation and alignment by continuing the
transition from projects to support in a pooled manner, and will adjust
appropriately to government institutions’ implementation capacity and gradually
build capacity in order to increase speed of implementation.
The modality for cooperation between GoT and DPs is gradually changing. National
sector or sub-sector frameworks are emerging, in line with JAS, which over time are
intended to enable a development of full-fledged SWAps. This enables joint DP
support, contributing to the frameworks. This coincides with the general trend
amongst many donors – including Danida – to focus assistance on fewer sectors, and
with a more limited scope within the selected sectors.
VPO-DoE has initiated the formulation of the EMA-Implementation Support
Programme, after conducting a capacity needs assessment to address current
shortcomings and accelerate implementation. The EISP is a national programme that
enables MDAs, LGAs to implement EMA, and enable DPs to contribute to a unified
system. DPs funding support is expected to mainly be channelled through a basket
fund arrangement. The EISP will initially prioritise MDAs, but will also address
LGAs through PMO-RALG (see below).
GoT has, under the leadership of PMO-RALG and with support from Danida, over the
last two years developed the UDEM Framework. The UDEM framework will provide
a complementary funding facility in LGCDG and CBG, and all urban LGAs will have
access to the UDEM grants provided they fulfil minimum conditions. UDEM will,
furthermore, contribute to an enabling national framework through preparation of an
Urban Development Policy and harmonisation of urban-related policies and
legislation. The UDEM Framework is likewise a national programme that enables
MDAs and LGAs to address urban environmental challenges, and DPs to contribute to
a unified system. DPs funding support will mainly be channelled through a basket
fund arrangement.
The EMA and UDEM frameworks are, from the onset, conceived as GoT frameworks
in which the DPs will adhere to common objectives, implementation modalities, and
basket funding arrangements – to which the ESPS also subscribes.
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PFM is moving towards a SWAp arrangement, which is anticipated to be
operationalised during the ESPS implementation period. A SWAp Letter of Intent has
been signed by key GoT institutions and key DPs, and a NFP SWAp Steering
Committee has been established as a result. The SWAp will pursue a forest sector
basket fund with common objectives, work plans, budgets and reviews. Funds from
the forest sector basket will be routed to: MDAs and to LGAs through PMO-RALG.
The implementation of EMA, UDEM and PFM are subject to GoT‟s planning and
budgeting procedures, allowing involved institutions to set the implementation pace
according to their respective capacities and experiences. The planning is/will be based
on three-year rolling cycles (MTEF) that are amended annually – making room for
adjustment of the implementation pace if need be. The pace of implementation is
anticipated to pick up, as more LGAs will be demanding the services, and as more
DPs join the frameworks resulting in increased funding allocations.
6. ESPS will further qualify the GoT and DP dialogue and cooperation, will
facilitate the role of Danida as a key partner, and will seek to strengthen civil
society’s voice, in order to enforce domestic accountability.
ESPS will contribute substantially to launching and implementing the EMA and
UDEM national frameworks and further developing the PFM framework. Initially, not
many DPs have confirmed their commitment to the EISP and the UDEM Framework,
and thus Danida‟s firm commitment to support GoT‟s efforts is essential for
launching the EISP and the UDEM Framework.
The DPs are important drivers of change in dialogue with GoT, as changes require
policy dialogue, as well as technical assistance in its widest form. Danida has for
many years played a leading role in broadly promoting the environment sector in
Tanzania, and has played a key role in shaping the way the sector works, including
taking on the current chairing of the DPG-E. The chair function further enforces the
leading role, and expectations to the chair are substantial and varied. Opportunities are
also apparent in the DP and GoT dialogue, and needs to be utilised. ESPS will include
funds to support selected DPG-E activities, such as joint DP studies, facilitation,
meetings and seminars etc.
GoT dialogue with DP cannot substitute for domestic dialogue and accountability
relationship between the GoT and the citizens of Tanzania. However, the advocacy
role of the civil society in the environment sector is at present weak, and it is therefore
important to contribute to the creation of a stronger domestic voice in the sector. This
can be done through various means, some of which has been referred to in an earlier
mentioned consultancy, and funds will be set aside to this.
4.2 Scope and Objective
The ESPS will contribute to implementing MKUKUTA and the new comprehensive
environmental management frameworks at central and local levels that address rural
and urban environmental problems and challenges. It will do so with the aim of
improving the environment and reducing poverty (in its broadest form) and thereby
improve livelihood conditions in rural and urban communities. The ESPS will
respond to Tanzania‟s environmental challenges as identified in the EISP, the UDEM
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Framework, and the NFP. The ESPS will be a five-year programme from July 2007 to
June 2012.
ESPS development objective
Sustainable management of Tanzania‟s natural resources and environment
contributing to growth and income poverty reduction, to social wellbeing, and to
improved governance and accountability.
Components
Support to EMA Implementation Support Programme;
Support to UDEM Framework;
Support to PFM Programme.
The three components are very different in nature. The EMA Component is more
“global” in nature and will provide a common framework for all environmental
management interventions in Tanzania, while the UDEM and PFM components will
be guided by their respective policy, strategic and regulatory frameworks. The UDEM
Component addresses urban environmental issues comprehensively in all urban
centres in Tanzania. The PFM component is part of the NFP and is currently
implemented in four regions, although this is likely to change during the programme
period.
The ESPS is fully coherent with the MKUKUTA outcomes, targets and strategies.
The ESPS Development Objective is directly linked to the three MKUKUTA
outcomes, but also draws a line from the previous programme objective. The
MKUKUTA poverty monitoring system includes a number of poverty-environment
related indicators, which the ESPS will be monitored against (see below).
4.3 Assumptions and Risks
DoE, PMO-RALG and FBD are fully committed to implementing their respective
programmes. DoE is in the process of restructuring in line with EMA, and it is
thought that this will facilitate a smooth implementation. Similarly, PMO-RALG has
gone through a restructuring, has expanded its offices, and recruited numerous new
staff – all of which will also facilitate effective management of the UDEM
framework. Finally, the TFS is under establishment as an executive agency, which
also involves new management of PFM. It is assumed that the executing institutions
will be allowed22 to appoint competent staff, in the case these are not already in place,
to implement their programmes and establish relations with other MDAs, whose
participation will be essential for successful implementation. The degree of
commitment of beneficiary MDAs and LGAs is likely to vary – to a large extent
depending on their resources and their appreciation of the support provided.
The individual components are quite different in scope and complement each other,
but they will in some cases touch upon similar issues and target same groups and
individuals e.g. a district environmental officer, who is often also the natural resources
officer may be targeted by more than one component. Other GoT or DP initiatives in
MDAs and LGAs may also overlap with the EISP, UDEM Framework and PFM
22
PO-PSM needs to give its consent and MoF to provide the budget.
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52
Programme efforts, and confuse the situation. Coordination in the sector is key to
eliminate any overlaps, and it will be the task of the GoT to coordinate the sector
through EWG and other mechanisms. It is also assumed that the strategic planning
and budgeting processes will facilitate that various efforts will complement each other
and generate synergy effects.
The public sector reforms in Tanzania are quite ambitious, making radical changes in
the public administration. As the implementation of the EISP, UDEM Framework and
PFM Programme are fully integrated into the new procedures, the successful
implementation of the ESPS depends on the effective operationalisation of these
reforms and the functioning and sustainability of these new procedures. It is assumed
that the public administration procedures will mature and develop further over the
next years.
Tanzania is politically and economically very stable. It is anticipated that annual GDP
growth will continue to be in the range of 6% over the next five years and could even
be higher if agricultural reforms are pushed through. On the other hand drought and
water shortage could seriously affect economic growth and thus delay the impact of
the MKUKUTA. There would also be risk that pursuance of short-term economic
gains could be at the expense of natural resources‟ quality – as there are plenty
examples of so far – if environmental management and governance practices and
accountability are not developed urgently and become immediately effective. The
ESPS is in itself contributing to a better understanding of the environment, and to
planning and implementation of environmental interventions, thereby
counterbalancing this risk.
For the UDEM component, the main assumptions are:
The public sector reforms in Tanzania successfully increase the effectiveness
of the civil service.
The capacity of the LGAs is sufficient to fulfil the conditions of the capital
grant, make use of the capacity grant and ensure adequate operation and
maintenance.
3 Central government institutions are able to focus on their facilitating and
regulatory role and allow LGAs to assume the implementation role.
Development partners provide sufficient funding and channel their funds
through the UDEM framework.
Urban communities will actively participate in the planning and implementing
of the UDEM activities.
The main risk factors include:
The public sector is overwhelmed by the number of reforms and is unable to
complete them.
Vested interests work against the public sector reforms e.g. in decentralisation
and the process takes much longer than envisaged.
PMO-RALG does not have sufficient capacity to coordinate and manage the
UDEM framework.
The continued low political attention given to urbanisation challenges leading
to lower priority.
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Political instability at local government level which means that longer term
urbanisation challenges are not addressed.
Cost recovery for operation and maintenance proves too difficult and
politically costly.
PMO-RALG does not sustain its commitment to the UDEM framework in
terms of allocating resources and coordinating other agencies even through it
is obligated to do so by its mandate.
A mismatch in demand for urban investments resulting from rapid
urbanization and the available supply of services and investments.
Vested interests in the central government ministries who are not willing to
release the influence that an implementation role provides or do not believe
the decentralised approach can yet work well.
LGAs are overwhelmed with the range of tasks that they abdicate from their
responsibilities thus obliging central ministries to step in.
Coordination in the sector is insufficient to eliminate any overlaps with other
GoT or DP initiatives in MDAs or LGAs.
Staff are transferred and replaced by less competent staff and delays are
experienced in funds transfers from Treasury.
The current debate over approaches to urban development leads to coherent
and constructive approaches being adopted rather than conflict and division.
DPs do not join the UDEM framework as the GoT directs donors away from
the urban development area towards other priorities and/or accepts other
modalities for support
Donors are not stable in their cooperation and change focus before allowing
results to be consolidated.
Communities have other much more pressing needs e.g. jobs and housing that
reduce the interest in UDEM activities
LGAs are not able to properly communicate the need for and benefit of
UDEM activities to the communities.
For the EMA implementation component, the main assumptions are:
Increased commitment, by DoE and NEMC, to implementation of EMA.
Increased commitment by MDAs to implementation of EMA
Increased management capacity in DoE/NEMC to coordinate the
implementation of EMA.
Continuing political support for environmental management.
The main risk factors include:
A reduction in the overall budget of the VPO as a result of worsening
economic performance or less political priority attached to environment;
A reduction in the priority attached to EMA implementation by DoE;
Lack of visible results in the first year or two leading to impatience with the
longer term institutional approach and a desire instead to see quick but poorly
considered action on the ground;
Ministry of Finance and DPs may not wish for external support to be used for
EMA implementation or for the EISP to be the channel of support;
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Lack of awareness and understanding of EMA and the specific roles of the
MDAs in question, and EMA‟s importance and potential benefit for the
specific sector,
Presence of more urgent problems and challenges in the MDA sector so that
environment is placed on a lower priority;
MDA budget constraints;
Passive resistance of MDAs who agree on the surface but are unconvinced in
reality;
Inability to find highly committed and knowledgeable individuals or
willingness to assign them to the task of coordinating EMA implementation;
Institutional conflict between DoE/NEMC or MDAs;
An inability to prioritise and accept that to achieve little well is better that to
try to achieve much but fail;
Goal displacement and crisis management;
Low absorption capacity in DoE due to recent budget increases;
Worsening economic performance and the need to reduce commitment to
longer term challenges such as the environment;
Powerful vested interests that work against the implementation of the act
because it threatens their activities;
Growing or continuing ineffectiveness of law and order and difficulty in
enforcing regulations.
DPs do not join the EISP as the GoT directs donors away from the EMA
implementation towards other priorities and/or accepts other modalities for
support
In addition, although not directly associated with the implementation of EMA there is
a risk that SUALDWC will lead to forced resettlement if the relevant laws and
procedures are not kept to.
The main risk associated with the PFM Component is that the transaction costs of
engagement in PFM are high, making more unsustainable forest management more
attractive. When benefits take a long time to materialise, participating communities
lose interest, and while illegal logging is not effectively curbed, this becomes an
attractive option. The Independent Forest Monitoring, to be initiated jointly between
GoT and DPs, will aim at limiting and preventing illegal logging, thus make that less
attractive. At the same time the PFM programme will counter the risks through
constant feeding of lessons learned into guidelines in order to speed up
implementation and by broad awareness creation.
4.4 Outcomes
The medium-term outcomes for the three ESPS components are anticipated to be:
EMA
An enabling framework for EMA implementation – i.a. through policy
harmonisation, planning, environmental assessments, enforcement, reporting,
and awareness creation – has been created that significantly improves
environmental management in Tanzania;
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MDAs and LGAs have significantly improved their environmental
management capacity resulting in quantifiable improvements in the state of
environment in Tanzania.
UDEM
A national level enabling environment for urban development and
environmental management with an UMDP in place, harmonised legislation,
guidelines, and national level capacity to support urban LGAs;
Institutionalised training and backstopping services, from relevant MDAs, that
on a continuing basis, develop corporate and individual competence for MDA
and LGA staff, based on their demands, in support of UDEM implementation;
A local level enabling environment in urban LGAs with established
procedures for urban planning, development and environmental management
and associated capacity and local level coordination mechanisms;
Improved urban land management and planning that amongst others addresses
the needs of the unplanned areas, leading to improved environmental
infrastructure and services that contribute to a healthier urban environment in
the planned areas as well as in the unplanned areas – generally benefiting
urban citizens (and in some cases rural areas and populations).
PFM
The national enabling framework has been enhanced resulting in faster rollout
of PFM to existing and new districts.
The area under PFM has increased and sustainable management of the forest
areas has been improved.
Socio-economic benefits have been provided to the participating communities
resulting in improved livelihoods.
PFM conducted in line with good governance principles
4.5 Capacity building approach
The Danish support to the environment aims to build up capacity to implement EMA
and to implement the UDEM. The key characteristics of the capacity building
approach are summarised below:
Capacity development is acknowledged to be dependent on a very wide range
of political, institutional and other factors relating civil service performance
e.g. pay reform. In the terminology of some capacity building approaches the
so-called external and political dimensions as opposed to the internal and
functional/ rational dimensions.
The approach takes account but does not attempt to duplicate the ongoing
efforts to improve the capacity development environment for LGAs and
MDAs through a variety of programs including the LGRP and the
implementation of the public service regulations of 2003 amongst others.
These efforts can be termed as “sector relevant” capacity building. It is
appropriate that the EISP and UDEM frameworks acknowledges the existence
and primacy of these wider sector relevant efforts and coordinates with them
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but it is not appropriate that the EISP and UDEM are the channel for delivery
as there are other better placed efforts for meeting these complex challenges.
The EISP and UDEM will focuses their work on the “sector specific” capacity
building challenge i.e. on building that technical and functional capacity which
is highly specific to the implementation of EMA and UDEM
A phased approach will adopted in order to build a strong foundation for the
future. Within EMA, the initial focus is on i) DoE and NEMC and ii) a limited
range of MDAs. Once capacity is built in the MDAs, the MDAs themselves
will cascade capacity building down towards the LGAs. Within UDEM the
initial focus will be on the LGAs that are able to meet the demanding criteria
of the CDGs and on establishing a network of capacity builders who are able
to meet the demands of LGAs who have access to the capacity building grants.
A demand responsive approach is adopted whereby it is recognized that not all
MDAs/ LGAs will be equally responsive. In some MDAs/LGAs there will be
processes such as restructuring or senior management changes that could
accelerate the implementation of EMA/ UDEM and in other cases delay it.
The EMA/ UDEM frameworks have to be ready to respond to opportunities
for change whenever they occur.
The approach will be to mobilize internal resources in the MDAs an LGAs
and to work closely with top management as well as the personnel and finance
function to ensure that the necessary support in terms of resources for the
environmental function are made available. Within EMA, a key part of this
strategy will be to assist in the strengthening of the environmental sections and
the development of an internally generated environmental action plan that is
MDA specific.
To emphasize the internal and MDA driven capacity building approach, the
funds from the EISP and UDEM basket funds will be made available directly
to the MDAs through their MTEFs.
Specifically for the UDEM framework:
The capacity building is learner and demand led and based on the already
functioning LGA CBG system which provides on certain pre-conditions funds
which LGAs can access to pay for capacity building of their choice.
A guided market based approach is adopted whereby the demand from LGAs
is met by the supply available from anchor institutions that are capable of
providing the capacity development services needed in a client- provider
framework.
One of the market “guides” is that the pre-conditions for accessing the CBGs
are aimed at directing the funds only towards those LGAs where the “sector
relevant” capacity is already sufficiently well established that they gain from
“sector specific” capacity development. That is, dysfunctional LGAs are
excluded as they are not ready and cannot make use of the type of technical
training that is delivered through the UDEM framework.
It is acknowledged that even with the presence of money backed demand from
the LGAs in the shape of the CBG that this market based mechanism may not
happen by itself and will need to be stimulated.
The role of PMO-RALG is to ensure that market based mechanisms emerge
on the supply side, based on light encouragement, provision of quality control,
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training of trainers and seed funds that can be accessed by all reasonably
viable institutions and capacity building enterprises.
The PMO-RALG and the MDAs themselves need capacity building in order to
fufill their role and this is one of the tasks of the long term Technical Assistant
(TA). The TA is also available to provide support to the anchor institutions.
The anchor institutions will themselves also be able to offer capacity building
to the MDAs in specialist areas.
The seed money to assist the supply side (anchor institutions) and also the
quality control and Training of Trainers (ToT) function will come from a
common basket fund.
Finally there is a feedback loop between the LGAs and the MDAs.
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5. COMPONENT OUTLINES
5.1 EMA Implementation Support Programme
National framework
Since the enactment of EMA in 2005, progress has been slow in establishing
environment sections in sector ministries, although some already have focal points,
and units that undertake similar tasks etc. A detailed overview is given in Annex F of
the component description. None of the sector ministries have prepared Environment
Action Plans. However, some MDAs are conducting EIAs (energy, mining, roads,
industry and tourism) in line with their adopted procedures. SEAs have not yet been
conducted in accordance with Act, while some SEAs took place before the Act came
into force. Few MDAs carry out compliance inspections, except for the health, mining
and industry sectors. Violations of EMA have naturally not been prosecuted. Sector
ministries have not produced Sector State of Environment Reports, but VPO is in the
process of preparing the national version. There has been limited progress in
harmonising policies, legislation and regulations except for a few MDAs (energy,
minerals and roads) in line with their procedures. Generally, there are low levels of
awareness and internalisation of EMA in sector ministries – and much remains to be
done.
With a view to facilitate the implementation of EMA, VPO-DoE initiated the
formulation of the EISP. The EISP will have a first phase of five years starting from
July 2006. The EISP will prioritise MDAs as entry points, but will also address LGAs
through PMO-RALG. EISP is organised around the mandates provided in the Act.
The following selected EMA mandates are the focus in relation to: a) the national
environmental institutions, meaning DoE and NEMC; b) MDAs; and c) the PMO-
RALG system, including Regional Secretariats and LGAs:
Environment Policy and planning
Environmental Assessments (EIAs and SEAs)
Reporting, monitoring and enforcement
Environmental information, awareness, and research
These mandates are considered essential for the implementation of EMA and are also
considered a realistic starting point. The mandates represent specific functions, but
also institutional linkages, e.g. various institutions have various roles to play in the
conduct of EIAs and SEAs, and the implementation of this mandate requires
substantial inter-action and coordination. Other EMA mandates will be included as
the implementation progresses. Similarly, a number of Ministries have been
considered for the initial implementation, and more will follow.
The EISP should be seen as a framework for implementation of EMA, as the actual
activities by institutions to implement their mandates will be determined in annual
work plans and budgets, through the GoT planning and budgeting system. This
method is chosen, as it is rather difficult to determine up to 5 years in advance the
specific activities of specific institutions to implement EMA. EMA is a means of
mainstreaming the EMA application in the different sectors so that they can take
responsibility on their own shoulders.
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DoE has submitted a proposal to President‟s Office, Public Service Management (PO-
PSM) for the Division‟s restructuring so that it can meet its functional obligations to
implement EMA. DoE has, furthermore, requested the MDAs to establish
environment sections according to EMA‟s stipulations, which will greatly facilitate
the sector ministries‟ mainstreaming of environment into the policies, strategies and
functions. NEMC has reviewed its structure and is currently employing staff so that it
can effectively meet the EMA requirements.
The total DoE staff will rise from 37 in the three sections of the present structure to at
least 64 once the new structure is in place. This represents more than a doubling of
capacity.The total NEMC technical staff will be 85 (increase from 50 technical staff at
the present time) with a supporting staff of 39 and total staff of 124. This represents
a70% increase in staffing.
Development objective
State of Environment in Tanzania improved through implementation of EMA,
contributing to growth and income poverty reduction, social wellbeing, and improved
governance and accountability.
Immediate objectives
1. Coordination of environmental management in Tanzania improved.
2. Effective implementation of environmental mandates.
Strategy
A full implementation of EMA requires a multitude of outputs to be delivered by a
multitude of institutions. However, given the resource scarcity it is imperative that a
few, but strategic outputs are targeted to stimulate the EMA implementation among
the various actors. The Programme therefore adopts a phased approach in which
initially only key mandates are included (see above) and a limited number of sector
ministries will be targeted for support. The targeted ministries will be MDAs with
potential for major contributions to growth and poverty reduction, and MDAs with
potential for major impact on the environment, as well as those that implement the
SUALDWC:
Box 5.1: First batch of sectors/MDAs for EMA implementation
Industry, Trade and Marketing;
Agriculture, Food Security and Cooperatives
Natural Resources and Tourism
Water
Livestock
Lands, Housing and Human Settlements Development
Infrastructure Development
Labour and Youth Development
Health and Social Welfare
Education and Vocational Training
Home affairs
Energy and Mining
Coordinating ministries incl. President‟s Office Public
Service Management, PMO-RALG, VPO (DoE and NEMC)
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The EISP implementation will be informed by the lessons learned from implementing
capacity building in the past, as articulated in the Capacity Building Programme for
EMA (January 2006). The content and level of support to the respective MDAs will
be based on the situation facing the MDA, and they will themselves prepare proposals
for the assistance required under the EISP within the framework it provides.
Outputs
The outputs under the immediate objective 1 will primarily be produced by the
coordinating and overseeing environmental institutions, DoE and NEMC:
1.1 Policy and planning:
1.1.1 EMA associated regulations, standards, guidelines and manuals
prepared and disseminated to implementing institutions (some already
done, some underway);
1.1.2 NEAC established;
1.1.3 National Environment Fund established
1.2 EIAs and SEAs:
1.2.1 EIA and SEA experts registered, EIAs and SEAs reviewed and acted
upon; and Environmental audits conducted
1.3 Reporting, monitoring and enforcement:
1.3.1 Central Environmental Information System established and State of
the Environment Reports prepared and disseminated;
1.3.2 Environmental inspectors, Analysts, and Reference Analysts
designated/appointed;
1.3.3 Environment Appeals Tribunal established and functioning.
1.4 Information and awareness:
1.4.1 Awareness of EMA and Multilateral Environmental Agreements
amongst all stakeholders increased.
The outputs under the immediate objective 2 will primarily be implemented by
MDAs and at the local level through PMO-RALG:
2.1 Policy and planning:
2.1.1 EMA mandates specified and internalised within implementing
partners;
2.1.2 Environment sections and committees established (reviewed, where
they exist) in MDAs and LGAs
2.1.3 Sector specific and LGA environmental action plans/strategies
developed, implemented and monitored;
2.1.4 Sector legislation, policies, strategies, plans/strategies reviewed and
harmonised, and implemented where necessary.
2.2 EIAs and SEAs:
2.2.1 Sector specific EIA guidelines produced (reviewed if in place) and
implemented for approval;
2.2.2 Compliance inspections conducted;
2.2.3 SEAs of legislation, policies, strategies, plans and programmes
conducted and submitted for approval
2.3 Reporting, monitoring and enforcement:
2.3.1 Sector and LGA (consolidated report from PMO-RALG) State of
Environment reporting system established; and reports produced and
disseminated;
2.4 Information and awareness:
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2.4.1 Information on EMA and sector specific implications disseminated to
all stakeholders in respective sectors;
2.4.2 Information on EMA disseminated to regions, LGAs, wards, mtaas
and kitongojis.
Activities
The implementing institutions will propose output-related activities as part of their
three-year strategic planning and MTEF budgeting processes23. However, some
activities are known, as the outputs are closely linked to mandates in EMA. The
mandates are or will be expressed in regulations, which guide the actions to be taken.
For instance, the EIA mandates for the respective institutions are clear in EMA,
further detailed in the recent regulation, and MDAs will therefore have a clear picture
of the activities necessary to produce output 2.2.
The implementing institutions starting point is different e.g. some have environmental
sections and need to review these, others have to establish these sections from scratch.
The starting point will guide the identification of annual activities in the respective
institutions. An overview of the baseline of capacity has been developed during the
development of EISP.
Inputs
GoT inputs will comprise the involvement of its civil service in all matters required to
further develop and implement the EISP, including use of office space, etc. The costs
of setting up of environmental sections, remuneration of staff, will be borne by the
respective institutions. However, support can be provided under the EISP for
expansion of offices and for relevant equipment.
Danida and other development partner24 funds will be routed via a common EMA
basket fund and will go though the Exchequer System. EISP will also be financed by
project funding, both in the respective MDAs, which have existing project funding for
their Environmental activities, and in VPO, which have numerous projects touching
upon the EMA mandates.
Technical Assistance, long and short term, national and international, will be procured
freely by the implementing institutions, in line with the Government‟s procurement
rules. No long term Danida Technical Adviser is anticipated as part of this
component, however there will be a 1½ year on-going provision of TA amounting to
approximately 22 person weeks to be financed partly from programme management
as outlined in Annex C (inception period) and Annex E draft TOR (both annexes of
the EMA component description). The purpose of this TA is to assist with vital pre-
inception activities and to provide support during the inception phase not only for the
various analysis that are needed but also to build up management and other routines
that will increase the capacity of DoE to effectively manage the implementation of
EMA.
23
Please refer to Section 2.4 for further information. 24
No firm commitment has yet been made by other DPs.
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Institutions
As the EISP has national legislative, policy and development implications, EWG is
found to be the appropriate coordination forum for EISP, and it will function as the
steering committee with a corresponding mandate. This is in line with the expressed
intention to review the functioning of EWG, its mandate, composition, level of
representation, secretariat etc. Participating MDAs are already represented in the
EWG. A draft ToR for the reformed EWG is provided in the EISP component
description.
The executive agency will be the VPO, with a newly reformed structure and staffing
schedule. The DoE sections will undertake the necessary work corresponding to their
tasks and responsibilities. The DoE will also function as the Secretariat for the EWG
as regards the EISP, as they do now. NEMC will play a complementary role in line
with their enforcement mandate. MoF, PO-PSM, and PMO-RALG will undertake
supporting functions.
Crosscutting issues
The MDAs and LGAs are responsible for environment and gender mainstreaming, for
initiating efforts to respond to HIV/AIDS, and for good governance in their
institutions. The MDAs and LGAs have committees and staff dealing specifically
with environment, gender and HIV/AIDS interventions, which are incorporated in
their Strategic Plan and MTEF and which are subject to reporting and monitoring. If
the need for corrective measures, e.g. in the case of an EMA activity, arises, the
relevant focal points or sections will resolve what measures should be applied.
The implementation of government‟s new initiative to reduce environmental
degradation in threatened catchments (SUALDWC) will be a test of how good
governance is as there will be a need to balance environment requirements with
human welfare/rights and adherence to environmental laws as well as resettlement
laws.
Sustainability and replicability issues
The implementation of EMA will take place within existing government structures
and mandates, which will enhance sustainability significantly. Sustainability will
furthermore be promoted by ensuring that environment sections in MDAs are properly
established, staffed, equipped, and that environmental management functions are well
conceived – and not least that they continue to be well undertaken. Both DoE and
NEMC will have important overseeing roles – in accordance with EMA stipulation –
to ensure that MDAs and LGAs environmental management functions adhere to
EMA.
There will be considerable scope for replication, as the EMA implementation will be
undertaken in phases and batches. When all MDAs and LGAs have implemented the
initial requirements, there will be a need for continuing refinements of EMA
implementation. Best practice cases will be developed based on the positive
experience gained that will help inform future regulations and guidelines, and simple
procedures and systems.
5.2 UDEM Framework
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National framework
PMO-RALG initiated the preparation of the UDEM Framework with the intent to
address urban development challenges and provide much needed capital injections to
finance essential environmental infrastructure. The UDEM Framework will evolve
over time and accommodate changes in scope as the perception of the urban
development context expands. It is the intention that all government and donor
interventions in the field of urban management will be aligned to this framework. The
UDEM Framework comprises three components:
1. National Level Component
National Policy and Legal Framework
National Level Capacity Building
2. LGA Level Capacity Building Component
3. UDEM Funding Framework
Component 1 is concerned with development of the UDMP, updating and
harmonisation of legal provisions relating to urban affairs, and capacity building of
participating national MDAs in order to create an enabling framework for
urbanisation in Tanzania25. Component 2 is concerned with capacity building of urban
LGA staff in order to implement the UDEM Framework in the urban centres.
Component 3 is concerned with provision of funds to urban LGAs for investments in
urban infrastructure and services.
Two UDEM grants will be created: the UDEM CBG, which will be USD 25,000
annually for Cities, Municipalities and Towns, USD 12,000 for Townships, and USD
10,000 for minor settlements; and the UDEM Capital Grant (UDEMG), which will be
based on USD 1.0 per capita26. The UDEM CBG and the UDEMG will be integrated
into the existing LGA grant system as a specific additional facility for urban LGAs.
The LGA grant system already comprises the CBG and the LGCDG27.
The criteria for accessing the UDEM CBG will be similar to that of CBG, i.e. that the
LGAs have developed a capacity development plan. The guidelines for preparing a
capacity development plan is amongst others provided in LGA Capacity Building
Planning guidelines, which will be updated to capture the specific capacity needs of
UDEM. The capacity building grants are intended to assist LGAs in qualifying for the
capital development grants – and thus provide an incentive to do so – but also to
increase the management capacity on an ongoing basis. The minimum conditions for
accessing the UDEMG are:
1. The LGA should have qualified for the LGCDG;
2. Availability of officer responsible for coordination of urban environmental
management issues, which also is related to the EMA requirement of appointment
of an Environmental Officer at LGA level;
3. Availability of Council Plan and budget lines covering all UDEM activities.
25
See the UDEM component description for elaboration on the various views on urban policies,
legislation, and guidelines 26
The capita ceiling has been set for the UDEMG, based on previous experiences, for what the urban
LGAs realistically can absorb and in order to ensure that all eligible LGAs can access funds. 27
For further information on CBG and LGCDG please refer to Section 2.4 .
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The UDEMG will be distributed to those urban LGAs that qualify according to a
formula28: population weight 70%; and poverty weight 30%. All formal urban LGAs
(Cities, Municipalities, and Towns) will be eligible to access the UDEMG, while
Townships can be included subject to the availability of funds, and minor settlements
will probably not be included in the initial period.
Like the LGCDG, the urban communities that benefit from the UDEM investments
shall provide a minimum cash and in-kind contribution corresponding to 5% and 10%
respectively of the investment. The LGCDG‟s requirement that at least 50% of the
grant should be spent on lower levels of local governments (wards and mtaas) will
also apply to the UDEMG. Like the LGCDG, the servicing costs – up to 15% - for
preparing, appraising and supervising the investments, will be covered from UDEMG.
The eligible investments under the UDEMG Framework are indicated in the Box 5.2.
The UDEMG can only be spent on eligible UDEM investments.
Box 5.2: Eligible UDEM investments
Solid waste management
Liquid waste management
Sanitation
Water supply
Stormwater drainage and erosion protection
Urban agriculture
Urban greening and management of open spaces
Upgrading of unplanned settlements
Urban transportation
Managing petty/informal trading
Alternative energy sources
Urban pollution (air, land and water)
Employment creation/ income generation
Cleaner Production Technologies
Managing extraction of building materials
Law and Order (e.g. street lights, police posts, etc.)
Source: PMO-RALG
Urban LGAs can qualify for the UDEM CBG and the UDEMG on an annual basis.
The performance assessment of the LGAs‟ use of the UDEMG will be fully
incorporated into the LGCDG performance assessment routines and have the same
reward/ sanction consequences, while a few UDEM criteria will be added. The
performance measures29 are qualitative and seek to evaluate the performance of the
LGA in key functional areas and compliance with policy guidelines on governance,
participatory planning, pro-poor budgeting, project implementation, etc. – with a view
to improving service delivery (see Table 5.1). Work is in general continuing on the
refinement of the performance criteria, and a criteria on the adoption of EIAs in LGA
planning and design of projects is proposed. The LGCDG annual allocation will be
adjusted based on the performance either upwards or downwards.
28
This formula is almost identical to the LGCDG except that it excludes the size of the land area, as it
is assessed to have less relevance in urban centres. 29 PMO-RALG. Manual for the Assessing of Councils against Minimum Access Conditions and
Performance Measurement Criteria, November 2004
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Table 5.1: Performance measurement and scoring system
Functional Area
Total Score
Minimum score
below which a
penalty applies
Minimum score to
receive
performance
bonus
A. Financial Management 10 5 7
B. Fiscal Capacity 15 7 12
C. Development Planning 20 10 14
D. Transparency and Accountability 10 4 8
E. Interaction with LLG 10 4 4
F. Human Resources Development 10 4 8
G. Procurement 10 5 7
H. Project Implementation 10 4 7
I. Council Functional Processes 5 2 3
Total 100 51 70
Source: PMO-RALG
The UDEM Framework has the following additional performance criteria:
Table 5.2 : Performance Measures for the UDEM Grant Functional Area Indicators For Performance
Measures
Source of Information & Assessment
Procedures
A) Environmental
Profile
Existence of Environmental Profile
prepared according to the
guidelines provided by PMO-
RALG
Inspection of LGA records and documents
for physical evidence of both the process
and outputs.
B) Participatory
Implementation
of UDEM
Evidence of UDEM activities
implemented with stakeholder
participation through the EPM
process
Physical inspection of LGA records for
minutes, reports, budgets and other
documents; interviews with key personnel
in LGA area, PMO-RALG, etc and
evidence of activities in the previous
Financial Year
B) Establishment
of EMIS
Existence of an operational
Environmental Management
Information System supporting the
implementation of UDEM
established and operated according
to guidelines provided by PMO-
RALG
Check LGA for WG & Council activities
supported by the EMIS, Look for physical
evidence of operational EMIS
hard/software infrastructure, interviews
with stakeholders & PMO-RALG.
I) Strategic Urban
Development Plan
(SUDP)
Number of steps accomplished of
the SUDP preparation process in
compliance with national
guidelines provided through PMO-
RALG.
Inspection of LGA records to review
reports, proceedings, minutes, products,
maps, documents. Interviews with key
stakeholders, technocrats, relevant GoT
institutions.
Source: PMO-RALG
.
Development objective
Improved living conditions of the urban communities in Tanzania by facilitating
decentralised implementation and monitoring of sustainable urban development and
environmental management in the Local Government Authorities sector.
Immediate Objectives
4) To provide coordinated financial and technical assistance to relevant LGA sector
institutions at the national and regional levels to create an enabling atmosphere for
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implementation and monitoring of urban development and environmental
management activities at the local levels through a supportive legal and policy
framework;
5) To provide nationally compatible assistance for the effective management of the
supply and demand sides of capacity building of relevant stakeholders at both
national and urban local government levels to facilitate the implementation of
local level UDEM initiatives;
6) To provide financing to national and local level LGA sector institutions to
operationalise a UDEM supportive national Local Government sector and enable
the LGAs to make investments in improved urban development and
environmental management through nationally compatible intergovernmental
transfers.
These Immediate Objectives are more or less associated with the respective
components, and their objectives, of the UDEM Framework.
Strategy
The strategic directions that emerge from the diagnosis and the analytical work in
developing the UDEM Framework are:
Anchoring of the UDEM Framework in the pro-poor policy directions of
MKUKUTA.
Integrate the UDEM Framework into the LGRP initiatives so that it both gains and
contributes from the advances made in the local government restructuring process
– in particular relating to governance, accountability and revenue enhancement.
Link the efforts of all relevant national anchor institutions in a single one-stop
policy coordination platform to improve consistency and simplify LGAs‟ access
to national support services.
Provide a demand driven and client responsive mechanism and culture for LGAs
to access national support services;
Establish a long term reliable and sustainable central transfer fund mechanism for
investments in urban LGAs and enhance LGAs‟ funding of O&M, and for
establishment of routine duties at national level, and accept short term or
temporary financing or contribution towards initiatives that only need to be done
once.
Develop flexibility through use of feedback and learning mechanisms loops,
horizontally between the national anchor institutions, and vertically between the
national level and the local level.
Develop a realistic balance between what can be achieved by new policies and
guidelines and what is dependent on the strength of implementation and
enforcement action.
Outputs
The outputs are listed below:
Component/ sub
component
Outputs
National Level Component
Sub-component - National
Policy and Legal Framework
Output 1: Framework consolidated through – insertion of the
framework in MTEFs & pre studies for the UDMP
Output 2: Existing laws, guidelines and strategies harmonised
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Component/ sub
component
Outputs
Output 3: UDMP developed
Output 4: sustainable long term responsiveness to LGAs operational
National Level Component
Sub-component - National
Level Capacity Building
Output 1: Capacity of national level institutions to serve LGAs for
UDEM enhanced
Output 2: Platform to coordinate and enhance all national efforts
strengthened and operational
LGA Level Capacity
Building Component
Output 1: CBG for UDEM established and operational
Output 2: Improved implementation of UDEM activities in LGAs‟
through increased capacity for using the EPM process
UDEM Funding Framework
Output 1: National level CBF established and operational
Output 2: UDEM CDG established and operational
Output 3: Utilisation of other sources of funds for UDEM activities
promoted
Activities
National level activities: The main thrust of the national level activities will be on
creating a coherent framework for urban development and environmental
management - comprising a new policy and harmonisation of existing policies;
guidelines, best practice documents etc. and financial transfer functions, both in the
form of supportive services to the LGAs. Capacity building activities will take place
at national level in line with the respective institutions‟ mandates, and capacity
building services will be developed to be supplied to the LGA on a demand basis.
The local level activities are a little less easy to outline in detail, as the volume of
activities will depend on the number of urban LGAs qualifying, and the content of the
activities will depend on the LGAs, as they have large discretionary powers over the
funds, in line with the nature of LGCDG and LGCBG. Some certainties exist, as the
UDEM Framework includes earmarking and incentives for certain performance:
LGAs will appoint Environmental Officers and focal point for UDEM coordination;
LGAs will plan and implement UDEM activities and investments within the field of
areas provided in box 2.3; LGAs will plan and prepare and/or update, and implement
Capacity Building Plans, which includes UDEM aspects; LGAs will plan and prepare
and/or update Environmental Profiles; LGAs will initiate EPM processes; LGAs will
establish EMIS; LGAs will initiate strategic urban planning; and LGAs will conduct
EIAs on their investments. All of these are access or performance criteria, general or
specific for the UDEM Framework. It is important to note that under the
LGCDG/UDEMG system, investments are part of the GoT strategic planning and
budgeting process. The technical design of physical investment projects is done at the
LGA level. The project designs are appraised and quality assured by the LGAs.
Inputs
GoT inputs will comprise the involvement of its civil service in all matters required to
further develop and implement the UDEM Framework, and include use of office
space etc. GoT will, furthermore, undertake performance assessment and financial
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management in accordance with the established CBG, LGCDG and MTEF procedures
as amended to incorporate the UDEM CBG and UDEMG.
Urban LGAs will correspondingly utilise their staff to undertake the necessary work
to qualify for the UDEM CBG and UDEMG, to undergo training, and to manage
investment projects. The urban LGAs will also provide the necessary Operation and
Maintenance (O&M) costs and staff to sustain the investment costs from their own
revenues.
Development partners30 (Danida, Swedish International Development assistance
(Sida), WB, UN-Habitat) will contribute to implementation of UDEM‟s three
components. The DP funds can be earmarked to the UDEM National Component and
LGA Components in compliance with the UDEM budget, but a basket will be
established for those who wish to contribute to the whole UDEM Framework.
Technical assistance will be required both to support the MDAs in implementing and
further developing the UDEM Framework and to support urban LGAs in planning,
implementation, operation and maintenance of UDEM investments. The TA will be
short and long term, national and international, and be procured by the respective
institutions in line with GoT procurement procedures. However, a Danida long term
adviser will be provided for the first two years.
Institutions
The urban LGAs comprise Cities (5), Municipalities (17), Towns (4), and Townships
(78). Some of the Municipalities form part of Cities, e.g. three municipalities
constitute Dar es Salaam City. The Townships are District headquarters that have their
own councils, but are not budgetary autonomous. The urban LGAs will meet
regularly, as they do today, in semi-annual fora, facilitated by PMO-RALG.
The executive institution at central level is PMO-RALG, in which five divisions will
be involved in the UDEM activities: Division of Local Government (DLG), Division
of Policy and Planning (DPP), Division of Sector Coordination (DSC), Division for
Legal Services (DLS), and Division of Information Management Systems (DIMS).
The Environment Section in DSC coordinates the implementation of the UDEM
Framework and will act as secretariat to the UDEM Steering Committee, which will
be established. Other core institutions are DoE and NEMC of the VPO; and Ministry
of Lands, Housing and Human Settlement Development (MLHHSD), which will be
involved with its Mapping & Surveys Division (MSD), Human Settlement Division
(HSD), and Land Development Services (LDS). A division of labour has been agreed.
The LGRP –under the auspices of PMO-RALG – will also play an essential role in
implementing the UDEM Framework. The LGCDG Steering Committee and
Technical Committee will play a specific role in relation to the grants.
Crosscutting issues
The LGAs are responsible for environment and gender mainstreaming, for initiating
efforts to respond to HIV/AIDS, and for governance in their councils, and similarly
the MDAs are responsible in their fields for these areas. The LGAs, like the MDAs,
have committees and staff dealing specifically with environment, gender and
30
Only Danida has at this point in time declared its full commitment
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HIV/AIDS interventions, which are incorporated in their Strategic Plan and MTEF
and which are subject to reporting and monitoring. If the need for corrective
measures, e.g. in the case of a UDEM investment, arises, the relevant focal points or
sections in LGAs will resolve what measures should be applied.
Sustainability and replicability issues
Regarding the local level activities, sustainability will be promoted by facilitating that
investment projects are properly conceived, relevant and well designed. Emphasis will
be placed on LGAs undertaking their own internal appraisal and approval procedures.
Sustainability will, furthermore, be promoted by developing and sustaining LGAs‟
corporate competence in urban planning, development and environmental
management.
Regarding the national level activities, sustainability will be enhanced by developing
a comprehensive long-term UDP that provides effective directions for urbanisation at
national and local levels; and integrating development interventions into GoT‟s
planning, budgeting, accounting and reporting systems.
There will be considerable scope for replication, as more LGA‟s qualify and as the
need for investment in urban LGAs is enormous. Best practice cases will continue to
be documented based on the positive experiences gained that will help inform
procedures and guidelines for new eligible LGAs wanting to access the UDEM grant.
The UDEM Framework should, according to Danida, be seen as a medium term
intervention, addressing the urban environmental challenges, which are not fully
accommodated in the current policy, capacity building, and investment frameworks.
The grants may at a later stage be fully integrated in the LGCDG and LGCBG. When
the policy is in place and institutional mandates for servicing LGAs in this field are
fulfilled, the need for a specific earmarked national level support may dissolve.
5.3 Support to the PFM Programme
The PFM framework context
Forests and woodlands in Tanzania cover 38.5 million ha. Forests and woodlands are
key elements in the livelihoods of hundreds of thousands of households across
Tanzania, as they provide a wide range of benefits both directly in the form of timber,
forage, fruits, charcoal, traditional medicines, and gums and resins; and indirectly
through their ecosystem functions including regulating water catchments, erosion
control, nutrient cycling, maintaining local climates, and in supporting the Tanzania‟s
rich biodiversity. Despite their importance, about two-thirds of the forests and
woodlands are currently unreserved and lack effective management – causing
forestland to be further degraded and deforested.
The new executive agency, the TFS is in a long-term process of being established.
TheFBD of MNRT is the national agency responsible for policy and regulatory
functions. FBD still has considerable implementation responsibilities (not least for the
plantations), which eventually will be handed over to TFS. Technical capacity at all
levels is generally inadequate, particularly in land-use planning, forest management
systems, business and financial management, participatory development, resource
valuation, Monitoring and Evaluation (M&E) and data management.
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Today, the total area of forest reserves managed by central government and LGAs is
13.8 million ha, of which 1.6 million ha is managed jointly by government and
villages (JFM). Of the 19 million ha of unreserved forests land, only 2.1 million ha is
under village management (Community Based Forest Management – CBFM). The
PFM encompasses JFM and CBFM. PFM is a key strategy to realise sustainable and
equitable forestry in Tanzania. PFM offers important potential to improve
management performance in all forest types and to realise improved livelihood
benefits to communities living adjacent to the forests. This is also the intention behind
making people‟s participation the key strategy in NFP. Furthermore, PFM is in line
with the general political and economic direction of Tanzania, including the reform
processes. The PFM concept is therefore gaining momentum in Tanzania and is
widely recognised as an effective means of protecting and rehabilitating forest areas
while at the same time improving the livelihood conditions for communities engaged
in PFM.
Until recently PFM has largely been driven by externally funded and facilitated
projects. The project approach applied for PFM implementation has generally resulted
in concentrated funding in a single area, external advisers, parallel structures, high
levels of expectations, and complex field processes that are beyond the reach of local
institutions. While many projects have developed new innovative approaches to PFM,
the challenge is to transform these processes into low cost models that can be
replicated nationwide under varied conditions.
Moving away from the project based approach towards one that builds upon GoT
structures and systems requires time, persistence and a change in mindset of both DPs
and government. Significant challenges remain with regard to developing LGA staff‟s
capacity to a level where they can respond to PFM demands from rural communities.
District staff interaction with external service providers remains limited, as there is
some ambivalence and lack of knowledge among District staff on how to outsource
and engage civil society and private sector. This interaction could otherwise have the
potential to augment the Districts‟ technical and extension capacity.
The Danida PFM Component
The Danida PFM Component was launched in June 2003 and was planned for a five-
year period. Component implementation, however, encountered difficulties caused by
a number of constraints in the forest sector and the conceived implementation
modality. The Danida PFM Component was contrary to earlier more parallel
structures projects, building on the government planning, management and budgeting
systems, amongst others to adopt more low cost approaches. This transformation
process has been difficult and caused delays compared to the Component‟s original
targets and disbursement rates. The component implementation period has
subsequently been extended to June 2009 with the same budget allocation as
originally provided, but with adjusted annual budgets (see Annex D). An additional
budget provision will be allocated in ESPS to enable the PFM Component to continue
for the entire ESPS period (until June 2012) to ensure further consolidation of the
PFM concept and to allow rollout to other Districts having a potential for PFM
activities. It is estimated that by the end of the current phase, it will still be a national
programme in the making. Hence, inclusion in the ESPS is a high priority.
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The Component Document, October 2002 will, however, continue to provide the
framework for implementation until June 2009 – although a number of changes have
occurred as regards the implementation arrangements - in order to ensure consistency
with the evolving local governance framework. Most significant among these changes
is the decision to transfer responsibility for planning and reporting, including financial
administration, to PMO-RALG, Dodoma. This leaves FBD with more resources to
focus on monitoring, policy guidance and technical support, in line with central
government mandates in relation to the decentralisation by devolution policy. The
objectives and outputs will remain unchanged as presented below.
The development objective is: Improved and sustainable management of Tanzania‟s
diverse forests and woodlands resources contributing to the maintenance and
development of sustainable livelihoods especially among the poor rural communities.
The immediate objectives are: 1) A national framework for PFM under
implementation; and 2) PFM developed and operational in selected districts in four
regions.
The outputs are:
1.1 A national framework for PFM implementation developed and
institutionalised.
1.2 Applied research and development to facilitate PFM supported.
1.3 National PFM monitoring system developed and dovetailed to Poverty
Monitoring Master Plan, NFP and LGRP.
1.4 Manual of PFM „best practices‟ based on simple and practical handbooks
developed and published.
2.1 Local Government Authority human resources capacity and financial
ability to support PFM enhanced.
2.2 Village, sub-village and user group committees promoted and strengthened
to support implementation of PFM.
2.3 PFM plans in selected districts developed and under implementation.
2.4 Private forestry initiatives enhanced.
Danida remains active in the designated four Regions: Mbeya, Iringa, Morogoro and
Lindi. To date, PFM initiatives funded by Danida are supporting a total of 208
villages, covering a total of 540,000 hectares of forests and woodlands. This includes
both JFM arrangements in government forest reserves and CBFM in village lands. In
general it is estimated that approximately 1800 villages are involved in PFM, and less
than 1/3 have approved and signed Joint Management Agreements. The Danida
supported villages are also at various stages of establishing PFM arrangements.
Sustainability and replicability issues
Sustainability within the PFM component will be promoted by use of participatory
approaches that will increase the effectiveness of collective action and that respond to
the core interests of the communities in the vicinity of forest areas. Sustainability is
further enhanced by improved regulation from the public sector. Replicability is
enhanced by the emerging sector wide approaches which will allow unimpeded
transfer of good demonstrations throughout the country.
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DP involvement in PFM interventions
It is FBD, which in January 2003 initiated the five-year PFM Programme. The
Programme is not only funded by Danida, but also by GoT, WB (as part of their
Tanzanian Forest Conservation and Management Programme - TFCMP), Ministry of
Foreign Affairs (MFA)-Finland. The additional funding from MFA-Finland and WB
has created new opportunities, but has also stretched the limited capacity of FBD to
provide leadership and coordination. Despite the increased cooperation between DPs,
there remains a need for DPs and GoT to commit to a common Logical Framework
Approach (LFA).
Following extensive and prolonged negotiations between GoT and WB it was agreed
that funding for WB-supported PFM activities would not follow the models
developed by FBD and used by Danida and MFA-Finland, but would use the
mechanism developed under TASAF II. FBD was invited to take part in the design of
the TASAF II programme, and developed TASAF II forestry guidelines that included
aspects such as PFM, agro-forestry, tree nurseries, and other afforestation initiatives.
To date, no WB supported PFM activities have been initiated at village level.
FBD/MNRT, WB, MFA-Finland and Danida conducted a Joint Review of the PFM
Programme in June 2005. Some of the major findings were:
The programme is progressing satisfactory, but it is difficult to see the effect
yet, as many resources have been spent on establishing the general
implementation system. However, the programme has good potential for
achieving both the sustainable management of forest and livelihood
improvements. A word of caution was to not focus too much on the protection
aspect, and more on the production aspect.
There are substantial differences between the participating villages, both in
terms of socio-economic status, utilisation of forest products, natural resources
endowment, management capability, and the socio-political situation.
Moreover, the villages are not directly targeted, but only through facilitation
by Districts, and performance and demand is not properly assessed and
guiding the support;
The systems and structure for PFM interventions largely addressed the role of
GoT and to a lesser degree that of LGAs and local interactions. Still there were
capacity constraints on GoT side, at national and local level. There are
therefore further possibilities of addressing private sector development and
civil society involvement;
The Danish and Finish approaches were being harmonised and aligned with
GoT procedures. The IDA credit for PFM support is channelled through
TASAF, which has created confusion and coordination problems. The
facilitation of community level activities by District staff was not well
captured in the TASAF funding mechanism;
The NFP/forest sector SWAp was found to be complex and in need of strong
direction from MNRT/FBD, PMO-RALG and MoF. An alternative could be to
establish a PFM SWAp only.
The last bullet point above refers to the SWAp development. Key DPs, such as
German Technical Cooperation (GTZ), MFA-Finland, the Norwegian Agency of
Development Cooperation (Norad), Belgium, UNDP and Food and Agriculture
Organisation (FAO) and Danida have recently signed a Letter of Intent (LoI). It is
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anticipated that WB will also sign the (LoI). A SWAp Steering Committee has been
established and paved the way for a process towards formally establishment of the
forest sector SWAp with a MoU. The Director of the Policy and Planning Division
chair the Steering Committee and it has members from MoF, PMO-RALG, and active
DPs. The SWAp Steering Committee has replaced the NFP Steering Committee. The
forest sector SWAp could be operational in two to three years time. The SWAp will
pursue a forest sector basket fund and common objectives, work plans, budgets and
reviews. Funds from the forest sector basket will be routed to MDAs and to LGAs
through PMO-RALG.
The first annual NFP review was initiated this year, coinciding with Government
planning calendar. The review in 2008 or 2009 should be used to assess the PFM
Programme‟s performance, the intended rollout modality, the funding mechanism,
available budget commitments, and assess sustainability and replicability issues. This
joint review should undertake a thorough assessment of the continuation of the PFM
component and inform how the Danida funds for July 2009 – June 2012 should be
utilised. The decision on the funding modality will depend on various criteria,
including the extent to which the forest sector SWAp has matured and is functional
with a proper sector dialogue and planning and funding arrangements being in place,
and the likelihood and degree to which PFM will be prioritised as part of a NFP
basket. The illegal logging problems should also be addressed during the review.
PFM Scenario for June 2009
Refer to Annex D for the adjusted budget for the PFM component, which has been
used as a basis for the extension. The foreseen scenario for June 2009 is that the
forest/NFP SWAp is in place with PFM as a significant element, which will enable a
comprehensive rollout to the remaining eligible districts over the next three years
(also recommended by the joint review). The SWAp implies that the active
development partners engaged in PFM activities (Danida, MFA-Finland, WB and
potentially also Norad) route their assistance through MoF to FBD and LGAs
respectively and that DPs‟ interventions are harmonised and aligned to the NFP.
Furthermore, that all forest sector activities are coordinated through the national
SWAp Steering Committee. Overall monitoring of forest sector takes place through a
single forest sector monitoring process, established within FBD and building upon
local government monitoring processes, as well as the MKUKUTA monitoring
system. TFS will provide adequate services to the PFM implementation.
The PFM implementation modality is refined based on the experiences gained from
implementation in the selected districts (Danida 14 districts and Finish MFA 15
districts). PFM planning and facilitating capacity is improved at national level and in
those LGAs engaged in PFM activities. FBD‟s and LGAs‟ Strategic Plans and
MTEFs address PFM priorities adequately and the required recurrent and
development expenditures are contained in the respective MTEFs. The sector
planning and implementation process is informed by an annual NFP review, PER, and
by sector dialogue on prioritisations. Low-cost approaches are used for implementing
PFM – making it easier and faster (lowered transaction costs) for community groups
to embark on PFM activities, which in turn result in higher PFM natural resources and
socio-economic benefits. The private sector and civil society are increasingly
participating in PFM activities, either through mutually beneficial Public-Private
Partnerships, or through groups of service providers that are collaborating with local
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74
and national government institutions. A framework for co-ordinating and soliciting
forestry research under the NFP umbrella is operational across the sector. The forest
sector monitoring system generates nationwide information on PFM performance,
such as revenues generated and spent in communities, records of forest disturbance
etc. PFM contributions to the state of environment and environmental action plans for
the forest sector have been provided as per EMA‟s requirements.
Finally, an Independent Forest Monitoring System, established in a cooperation
between DPs and Government, helps to address destructive forest activities (e.g.
illegal logging), which in turn makes it more attractive for communities to undertake
PFM activities. Independent Forest Monitoring is under establishment, as a response
to the illegal logging scandals in the past years. The IFM will be operationalised
outside the context of the NFP SWAp (and PFM support), in order to ensure
independence of its activities, but contributing to the achievement of the goals of NFP
and PFM.
PFM Scenario for June 2012
The consolidation processes of implementing the PFM concept continues in
accordance with the evolution of the national NFP/PFM SWAp. The scenario by June
2012 is that the PFM concept is rolled out on a demand basis to most of the eligible
Districts in the country. Local PFM capacity is in place in those Districts targeted for
PFM support, which encompass District staff, village user groups, and civil society.
The area of forest and woodlands under different PFM regimes has increased
substantially. Due to improved PFM practices, both the local level benefits and the
accumulated national benefits are increased significantly. The PFM monitoring
system provides reliable information on PFM activities nationwide, which further
improves the planning and management of PFM activities at the national level as well
as the local level. Due to a well-consolidated national PFM Programme, DPs are
anticipated to provide continued support to PFM as part of the NFP SWAp beyond
2012.
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6. IMPLEMENTATION ARRANGEMENTS
GoT-DP MoUs regarding EISP, UDEM Framework, and NFP SWAp basket will be
developed, and they will include detailed specifications on management, on planning
and budgeting, on fund transfers, on procurement, on reporting and accounting, and
on auditing. This section is thus giving a preliminary presentation of the
implementation modalities. The table summarises the implementation arrangements,
which are further described in the specific component descriptions.
Table 6.1: Implementation Arrangements ESPS components Roles EMA UDEM PFM
Executing &
Coordinating
institution
VPO-DoE & NEMC PMO-RALG FBD, MNRT
Cooperating
Institutions
MDAs (selected) incl.
PMO-RALG
MLHSSD, VPO-NEMC,
LGAs
PMO-RALG, LGAs
Steering
Committee(s)
EWG UDEM Steering
Committee (SC), LGCDG
Steering Committee and
Technical Committee
PFM working group under
SWAp Steering Committee
Funding
mechanism
Basket Basket Continued component. After
2009 – basket
Funding
channel
Satellite account in
treasury, release based
on EWG approved
work plans and budgets
Satellite account in
treasury, release based on
SC approved work plans
and budgets (including for
the grants)
Disbursed to FBD and PMO-
RALG based on request, on
a grant basis. Manual
available
Planning
mechanism
Use of GoT planning
mechanism. Extracted
and aggregated work
plans and budgets,
based on respective
institutions‟ related
activities and budgets,
produced by VPO-DoE.
First year allowing
activities outside MTEF
Use of GoT planning
mechanism. Extracted and
aggregated work plans and
budgets, based on
respective institutions‟
related activities and
budgets, produced by
PMO-RALG
Use of GoT planning
mechanism– integration in
LGA development plans
Use of GoT planning
mechanism. Extracted and
aggregated work plans and
budgets, based on respective
institutions‟ related activities
and budgets, produced by
FBD.
Use of GoT planning
mechanism at local level as
well - integration in LGA
development plans
Reporting
mechanism
Use of GoT reporting
mechanism. Extracted
aggregated physical and
financial report, based
on respective
institutions reports,
produced by VPO-DoE
Use of GoT reporting
mechanism. Extracted
aggregated physical and
financial report, based on
respective institutions
reports, produced by PMO-
RALG.
PMO-RALG also extracts
and aggregates LGA
reporting
Use of GoT reporting
mechanism. Extracted
aggregated physical and
financial report, based on
respective institutions
reports, produced by FBD
Specific mechanism for
reporting from local level to
PFM working group.
TA Procured by respective
institutions using GoT
rules. First 1½ year
short term continous
TA procured by RDE,
from Programme
Management budget
Procured by respective
institutions using GoT
rules. Danida Technical
Adviser first 2 years
Services procured by FBD
using GoT rules, goods
procured through Crown
Agent, Danida Technical and
Financial Adviser - all until
2009. After 2009 – all
procurement by GoT
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6.1 Management and Organisation
The key national institutions for implementing the ESPS will be VPO-DoE, PMO-
RALG and MNRT-FBD, although a multitude of interactions will take place with
other MDAs and LGAs.
EISP will in its initial phase of implementation primarily interact with MDAs and to
some degree with LGAs through PMO-RALG. Similarly, the UDEM Framework will
also have interactions with a number of national agencies that influence urban
development and environmental management, and urban LGAs. The PFM component
will primarily continue interaction between MNRT-FBD, PMO-RALG, and LGAs.
All three components will in addition interact with communities, civil society, and the
private sector.
The three components of the ESPS have each their management structures and
coordination fora that function as steering committees with corresponding mandates.
The ESPS will thus not have a joint steering committee for the EMA, UDEM and
PFM components.
The EWG is the national level coordination body for environment concerned with
overall environmental policies and strategies. EWG will also serve as the steering
committee for EISP.
In the UDEM component, two linked fora will act as steering committees: Namely the
LGCDG steering committee and technical committee on the one hand, and on the
other hand, the UDEM Steering committee will be established. The LGCDG steering
committee and Technical Committee already exist, and will involve any new funding
windows such as the UDEM Frameworks, and contributing DPs will become
members. The UDEM steering Committee will partly build upon the current
Sustainable Cities National Programme Advisory Committee (NPAC), anchored in
PMO-RALG, but involving the other implementing MDAs, e.g. Ministry of Lands
and Human Settlement. NPAC will thus be dissolved. Contributing DPs will become
members. The two committees will naturally have linkages as shown in the UDEM
Component Document.
With the establishment of the SWAp Steering Committee, the current NFP Steering
Committee has been dissolved. The PFM component has been steered by a PFM
working Group under the NFP Steering Committee, but will now be anchored under
the new SWAp Steering Committee. Danida will be represented in both the committee
and /working group. Only very important issues will go to the SWAp Steering
Committee, while most will be dealt with at the working group level.
Technical assistance
The executing institutions will recruit long and short term, international and national
TA for the EMA and UDEM components and TA personnel will refer to their
respective Chief Executive Officers (CEOs). A Danida adviser will be recruited for
the first two years of the UDEM component. Furthermore, Short term continuous TA
for VPO to implement EISP will be procured through the Programme Management
budget line during a pre-inception and inception phase. As regards the PFM
Component, the two TAs will remain recruited by Danida until June 2009, after which
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date a SWAp arrangement is anticipated to be in place and potential recruitment of
TA will be undertaken by FBD. It is however important to note that the FBD already
recruit TA, in the form of short term consultancy services, jointly financed by Danida
and other DPs, using GoT procurement procedures. The current PFM advisers are also
acting as “pooled” advisers, advising not only Danida funded districts, but nation-
wide roll-out of PFM.
The TA arrangements are in line with the harmonisation and alignment envisaged in
JAS, which clearly indicates the wish by GoT to be able to freely procure and manage
TA. The TA arrangement constitutes a change from previous Danida support in the
environment sector, where one or more Danida advisers were recruited for each
project location e.g. Sustainable Cities projects, SIMMORS project etc. These
advisers have been phased out over the past years, and the current support is delivered
with Danida advisers building capacity in GoT to assist its own lower level
implementation units, e.g. LGAs etc. The TA arrangement is also in line with
Danida‟s TA policy.
6.2 Budget
The detailed EMA Programme and UDEM Framework budgets – coordinated and
prepared by DoE and PMO-RALG respectively – will constitute the framework for
GoT and DP budget allocations – and thus also for the ESPS budget.
The PFM Programme will continue to be implemented within the existing budget
frame for the first two years of ESPS implementation, as the implementation period
has been extended to June 2009. The PFM Programme will afterwards probably be
transformed to a similar budget regime as for EMA and UDEM, provided that a forest
SWAp materialises.
The ESPS budget is shown in Tables 6.1 to 6.2. The Danida PFM budget for July
2007 to June 2009 is funded under an existing appropriation and is thus not included
in the ESPS budget.
ESPS management budget line
The budget line for ESPS Management will be used to fund:
Denmarks leading role as a donor in the sector, incl. DPG-E activities
Danida‟s participation in joint GoT-DP reviews for the respective components,
The pre-inception and inception phase support inputs for the EISP
Technical studies as deemed relevant for managing the ESPS
Technical and financial audits as found necessary.
For the role as leading donor and funding of DPG-E activities, the main aim will be to
increase harmonisation and alignment in the sector and enhance quality of dialogue
by:
Supporting studies and consultancies e.g. joint studies related generally to the
environment sector or specifically to an environment sub-sector;
Supporting editing and publishing of joint materials; management of already
existing web-page etc.
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Supporting national or international events of significance for environmental
management in Tanzania e.g. annual retreats etc.
Experience has shown that there is a need for this type of funding, which is currently
being provided with difficulties on an ad hoc basis by various agencies. DPs are in
general satisfied with Danida‟s chair role, and are happy to see funds set aside for
DPG-E. Specific proposals for the use of funds will be endorsed by DPG-
Environment and Natural Resources in a meeting or by mail hearing, but funds are
released based on an approval by the RDE.
Unallocated funds
The unallocated budget will be used i.a. for:
Cooperation with civil society.
New activities in the existing components of the ESPS
For Civil Society, the main aim will be to improve the domestic accountability in the
sector. by strengthening of civil society‟s capacity and advocacy role. In line with
earlier mentioned observations on civil society, the funds will be available to i.a.:
Support strategic initiatives for capacity development of environmental CSOs and
networks to enhance their advocacy roles, e.g. seminars/courses, campaigns,
publications etc.
This will also complement the current service delivery role of civil society, which will
mainly be enhanced through the components.
For civil society, specific opportunities will be identified and developed and approved
by Danida and civil society on an on-going basis. No formal application procedure
will be installed, and proposals will be assessed on the basis of their merit
(strengthening of capacity and advocacy of civil society to improve domestic
accountability). The funding support will be directly to selected CSOs or to emerging
networks, and only the civil society organisation or network/coalition to receive
support will be involved in the approval. The final approval of proposals for use of
unallocated funds will be made by the Embassy of Denmark. GoT will be kept
informed about the use of funds.
Procedures for adjustment of budget between components
In the event that component budgets are not fully utilised – or likely not to be fully
utilised – funds can be transferred from one component budget to another, provided
that these can be properly absorbed. The component, which has the potential for
utilising additional funding, will need to document and justify that this is the case. Re-
allocations will be decided upon in an ad hoc meeting between the RDE, MoF, and
the component implementing institutions of VPO, PMO-RALG, MNRT, or in an
exchange of letters between these institutions. The meeting or exchange of letters will
be at PS and Ambassador level. Transfer of funds between components can take place
annually in connection with the budget preparations for the following financial year.
Summary of budgets
The overall budgets are summarised in the tables below:
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Table 6.2: ESPS budget by component (DKK million)
2007-08 2008-09 2009-10 2010-11 2011-12 Total
1 EMA Component 8 6.9 6.7 6.7 6.7 35
2 UDEM Component 20 20 20 20 20 100
3 PFM Component 0 0 6 6 6 18
4 ESPS Management 2.5 2 1.5 1.5 1.5 9
5 Unallocated Funds 2 4 5 6 1 18
32.5 32.9 39.2 40.2 35.2 180
Table 6.3: ESPS budget by component (TZS billion)
2007-08 2008-09 2009-10 2010-11 2011-12 Total
1 EMA Component 1.8 1.5 1.5 1.5 1.5 7.7
2 UDEM Component 4.4 4.4 4.4 4.4 4.4 21.9
3 PFM Component 0.0 0.0 1.3 1.3 1.3 3.9
4 ESPS Management 0.5 0.4 0.3 0.3 0.3 2.0
5 Unallocated Funds 0.4 0.9 1.1 1.3 0.2 3.9
7.1 7.2 8.6 8.8 7.7 39.5
exchange rate 1 dkk = 219 TZS
Total
Total
6.3 Financial Management, Planning and Procurement
Programme activities (EMA, UDEM and PFM) will be incorporated in the MDAs‟
and LGAs‟ annual planning and budgeting processes, which is explained in section
2.4, and will be undertaken in accordance with GoT procedures and planning cycles.
For EISP and UDEM Framework each implementing institution will identify the
relevant activities to be included in their annual plans and budgets in their MTEF. The
executing institution, meaning VPO-DoE and PMO-RALG, will prepare annual
aggregated budgets and work plans, based on the implementing institutions annual
plans and budgets. The aggregated plans and budgets will thus constitute extracts of
the MTEF, and will be submitted to the Steering Committees for endorsement. The
planning and budgeting in the PFM component is already expressed in manuals, incl.
a recently approved manual for district PFM funding, developed by MoF, PMO-
RALG, and FBD, and building upon the existing GoT system.
The Danida and other DP funds for EISP, UDEM and later on the PFM will be routed
through basket fund arrangements. In EISP and UDEM Framework, funds will be
provided by the DPs in semi-annual or annual instalments. Some DPs may wish to
earmark their funding, thereby not being part of an overall basket, e.g. WB main
interest is in the Urban Development Policy, and they may choose to fund that only.
The DPs will route their funds through the MoF Exchequer System, which enables
fund transfers to be recorded in the Integrated Financial Management System. The
DPs will indicate their funding commitments well in advance to ensure that budget
preparation can take place based on predictable DP contributions to allow MTEF
budget ceilings to be realistically set. Two routes of funding will be applied – both
aligned to the current GoT system:
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1. DP funds to MDAs (meaning mainly national level funding e.g. the national
level activities in UDEM Framework, EISP etc.) will be routed to a „satellite
account‟31 for each basket fund held by MoF/Treasury. Funds will be released
to the Exchequer based on the Steering Committees‟ approved work plan and
budget and integration of these into the executing institution‟s MTEF. The
executing institution will request a transfer to the MDA budget holders as per
their budget in their MTEF. As funding requests in the GoT financial
management system can be made quarterly, based on previous quarters‟
progress report and accounts, it is unlikely that funds will accumulate in the
MDAs. For the first year of EISP, activities may be approved by EWG, funds
channelled through the MoF/Treasury, but not inserted in the MTEF yet.
2. DP funds to LGAs (mainly to LGA activities in UDEM Framework) will be
routed to the respective satellite account held by MoF/Treasury. Funds will be
released to the LGAs based on approved budgets the LGCDG Steering
Committee, and PMO-RALG requests. In the event that LGAs under-spend,
the balance can be transferred to the next financial year, provided that it is
included in the budget for that year. This will be the case for project planned
to be implemented over more than one year, and where delays have occurred.
All funds will go to one account in the LGAs, but the LGA will in GoT budget
guidelines receive instructions about any earmarking. As LGAs have to
account quarterly for funds, similar to the MDAs, funds in 3rd
quarter will only
be transferred based on accounted expenditures in 1st quarter.
The executing institutions will issue aggregated quarterly and annual financial and
physical progress reports based on information from the Treasury and the MDAs. The
reports, constituting an extract of the MTEF reporting and accounting, will provide an
overview of total revenues by source and expenditures by MDA and LGA. These
aggregated reports will also be presented to the Steering Committees.
MDA and LGA financial officers will undertake the bookkeeping. GoT procurement,
accounting, auditing and performance assessment principles will be applied for each
MDA and LGA. The Auditor General undertakes independent external audits of the
respective MDAs and LGAs, and these reports will be presented to the Steering
Committees.
The quarterly and annual financial reports will be disseminated to DPs for individual
monitoring purposes, as they are all members of the Steering Committees. The DPs
will, on request, have access to information on all bank transactions, accounts and
auditing reports.
The DPs reserve the right to conduct comprehensive or partial audits and technical
reviews to assure that financial management and implementation processes and
outcomes are as anticipated.
6.4 Indicators
Existing monitoring systems for the EMA and UDEM
31
The term holding account is also applied.
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Monitoring of the ESPS will take place at 3 levels and use existing GoT monitoring
systems, which are summarised below:
Table 6.4 Existing monitoring systems
Level Existing monitoring system
EISP UDEM Objective/ outcome MKUKUTA
Output MTEF – annual and 3 year strategic level for each budget holding entity
Process EWG assessment CDG performance measures
Thus no new monitoring system will be set up for the ESPS and the EMA and UDEM
components, neither by the government nor by donors supporting the UDEM or EISP.
Outcome level indicators for EMA and UDEM
The outcomes will be monitored using the MKUKUTA indicators and monitoring
systems. The key indicators in MKUKUTA that relate to the EISP are shown in table
2.3 in an earlier section.
Specific target setting has been done in MKUKUTA, e.g. the target for households
with basic sanitation facilities is 95% by 2010.
The bi-annual SoE reports will be based upon an environmental information system,
where MDAs and LGAs deliver state of environment reports relating to their
jurisdiction. The first SoE report, recently made available, did not build upon such a
system, and therefore it did not include a fixed set of indicators to be used in the
future. However, in the long term the SoE reporting system can provide indicators that
can indicate quantifiable changes in the environmental conditions, and point at the
successfulness of EMA implementation.
Output level indicators for EMA and UDEM
The outputs will be monitored using the MTEF system. In the compiled and
consolidated progress reports, based on MTEFs, the indicators are included. These
are the targets to which the responsible budget holding entity (normally at directorate
level) is held accountable. The indicators have not yet been finalised for the MTEFs
for the period from 1 July 2007 but draft indicators that have been discussed and are
available for inspiration in the component descriptions.
Regarding EISP, the output indicators in the MTEF are likely to arise from the first
version of the environmental action plan to be produced during the first year
implementation. The indicators will thus be highly specific for each MDA
Process monitoring for EMA and UDEM
For the EMA component, the main mechanism for monitoring the processes will be
through the EWG. The EWG will hold monthly meetings, which will provide an
opportunity to qualitatively assess how well the process of implementing EMA is
proceeding and to monitor the validity of key assumptions. The DoE as the
coordinating body will prepare for the meetings and will ensure that relevant
information is available. Based on this and other available information the EWG will
be in a position to assess progress across the budget holding entities and thus establish
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an overview. Milestones have tentatively been developed in the EISP, which the
EWG can use. These milestones are not intended to duplicate or substitute the
MKUKUTA indicators but instead provide intermediary measures of how well the
process of EISP is progressing and to provide a departure point for common
understanding on the status of implementation and what if anything needs to be done
to accelerate or improve the quality of implementation.
For the UDEM component the process indicators are taken from the performance
criteria associated with access to capital development grants. The process indicators at
the individual LGA level are:
Preparation of Environmental Profile
Participatory Implementation of UDEM
Establishment of Environmental Management Information System (EMIS)
Strategic Urban Development Plan (SUDP)
For both components, the process level will monitor the progress regarding the
collaboration and cooperation among stakeholders, effectiveness and efficiency of
implementing ministries as well as compliance of the implementing ministries with
programme principles, resource utilization and accounting guidelines and reporting
(MTEF budgeting procedures).
PFM monitoring
FBD has initiated establishment of NFP indicators and a monitoring system, which
will contribute to the MMS. The indicator system will most likely include 10-15
indicators regarding PFM, relating to the 1) improvement of forest under PFM
arrangements, 2) benefits e.g. revenues from PFM and associated livelihood
improvements, and 3) forest governance (e.g. number of women in committees,
accountability of committees etc.). FBD is also regularly creating an overview of the
progress in PFM roll-out, e.g. number of villages involved in PFM, number of
villages with approved and signed agreements, hectares of forest covered by PFM etc.
These indicators are currently also used in the RDE‟s VPA reporting system. Like the
other components, PFM is also represented in the MMS e.g. household income from
natural resources, area under community based management etc.
Cross cutting indicators
The following indicators have been selected to monitor progress in cross cutting
issues.
Gender: “Number and proportion of Village Natural Resource/Environment/Forest
Committees with women in executive position”
Source: National Forest Programme Monitoring/Forest Sector Monitoring System
Link to ESPS: PFM Component
Governance: “Number of urban councils qualifying for LGCDG and UDEM grant –
amongst others based on criteria of financial management, fiscal capacity, planning
and budgeting, procurement, council functional process, project implementation,
monitoring and evaluation capacity, and capacity building”
Source: LGCDG Assessment
Link to ESPS: UDEM Component
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83
HIV-AIDS: “HIV prevalence among 15-24 olds” or “Number of persons with
advanced HIC infection receiving ARV combination therapy”
Source: MKUKUTA monitoring system (second indicator more reliable data)
Link to ESPS: None specific
6.5 Reporting and Review
Reporting
EISP and UDEM will follow standard government reporting procedures by
systematically using the existing reporting frameworks as shown below.
Table 5.6 Existing reporting system
Level Existing reporting system
PFM EISP UDEM Objective/
outcome
MKUKUTA
Output MTEF reports– annual and 3 year strategic level for each budget holding entity
Process SWAP steering
committee reporting
EWG assessment (minutes
of meeting)
CDG performance
measure reports
The MKUKUTA and MTEF reporting systems are well established, even if they do
not always yield timely high quality information.
The process reporting at the EWG and SWAP steering committee level (for PFM)
level will be more qualitative and will record the discussions and outcomes of the
meetings. If found relevant, special reports to investigate particular areas of delay or
concern could be commissioned by the EWG or PFM SWAp steering committee.
In some cases retreats or workshops might be relevant as a means of going into
greater depth on a particular process issue or opportunity e.g. peer to peer exchange of
information.
Reviews
Each component has their individual review mechanisms in place, where possible the
reviews will be planned to take place so that a “complete” ESPS review can be made.
If this is not possible a specific ESPS annual review will be needed that draws on the
reviews that have been made within UDEM, EISP, and PFM.
In the case of PFM, an annual NFP review process is under establishment. The first
review took place in February 2006, and covered all aspects of and funding to NFP.
As in the past, specific thematic reviews are to be conducted in relation to the NFP
review, e.g. a more detailed PFM review will be conducted in a similar manner.
In the case of the UDEM framework, LGCDG reviews are taking place quarterly with
LGA field trip observations feeding into Technical Committee meetings. This has
been installed due to a requirement by WB, and it functions relatively well in terms of
identification of key challenges to be addressed in the design of LGCDG, e.g.
adjustment of assessment criteria, management procedures etc. Joint review of the
national level activities of the UDEM framework can also take place, and will be
identified as part of the inception phase.
ESPS Tanzania
84
In the EISP specific review mechanisms have not been outlined, EMA
implementation is reviewed in a number of other review processes, such as the PER,
the General Budget Support review process etc. A need for a specific Joint review can
be accommodated.
In Joint Reviews, focus will be on progress and constraints in implementation,
amongst others due to changes in the national frameworks, and how the
implementation should adapt to these constraints and changes. The thrust of the
reviews will be to make recommendations on possible adjustments. The timing of the
joint reviews will in all cases coincide with GoT‟s planning cycle, in order to inform
the future work plans and budgets. The Steering Committees will endorse the
recommendations of the joint review reports.
6.6 Implementation
The first phase of EMA implementation will – as mentioned – target selected sector
and line ministries and a selected part of EMA‟s mandates. The first phase will
include an inception phase of 1 year. A second phase will include: 1) remaining
ministries with a focus on the same mandates as for the first batch of ministries; 2) the
first batch of ministries with a focus on the remaining EMA mandates. Succeeding
phases can potentially be undertaken
The launching of the UDEM Framework has been initiated with an inception phase,
which is anticipated to last until June 2007. PMO-RALG will prepare the inception
report, which will give an account of all important issues related to planning,
implementation, financing, monitoring and reporting. UDEM activities will be
included in the central core institutions‟ strategic plans and MTEFs from FY 2007-08
and onwards. The intention is to launch UDEM investment during FY2007-08 in the
urban LGAs. Not all of the LGAs that qualify for the LGCDG may necessarily qualify
for the UDEMG. The first batch of urban LGAs will thus be relatively few and
constitute the relatively well performing LGAs.
The PFM Programme is implemented according to existing work plans and budgets in
the selected Regions and Districts. The implementation modality is now well aligned
with GoT procedures. It is anticipated that the targeted area-based funding focus will
be replaced by a SWAp modality from June 2009 – similar to those of EISP and the
UDEM Framework.
The three components constitute frameworks for prioritised interventions. The
detailed planning of interventions will be undertaken through the MDAs‟ and LGAs‟
three-year strategic planning processes and as such the detailed implementation plans
will evolve as an outcome of these planning processes. The executing institutions will
recommend (to the Steering Committees) the relative distribution of funding between
MDAs and LGAs – based on priority considerations and the receiving institutions‟
absorption capacity.
The executing institutions will coordinate with other related initiatives being
undertaken outside the programme frameworks to ensure complementarity and
synergies with these. The institutions will keep track of all related activities to the
ESPS Tanzania
85
implementation of their respective programmes and will regularly provide a general
overview on progress and relations between the various interventions.
ESPS Tanzania
86
ANNEX A: LIST OF REFERENCE DOCUMENTS
Danida documents related to its environmental support in Tanzania:
Danida/COWI. Expanded Debriefing Note: Assessment of Options for Civil
society Support within the ESPS in Tanzania, April 2006
Danida. Terms of Reference for Design of an Implementation Programme of the
Environmental Management Act, April 2006
Danida. Note on phasing in old commitments into the new Environment Sector
Programme Support (ESPS), Tanzania, 2007-2012, March 2006
Danida, Programme Committee Summary Note on Tanzania/ Environment SPS
2007-2011. February 2006
Danida. Concept Note: Tanzania/ Environment SPS 2007-2011, January 2006
Danida/ Finnida/ WB. Joint Review Report: Participatory Forestry Management
Programme, Tanzania, August 2005
Danida/PEM. Technical Review of Danida Support to Sustainable Cities
Programme, June 2005
Danida. Mid-term Review: Report, Sustainable and Integrated Management of the
Malagarasi-Muyovosi Ramsar Site, March 2005
Danida. Component Description: Sustainable Wetlands Management 2004 – 2009,
October 2003
Danida, Fact Finding Report: National Component, Urban Environmental
Management, March 2003
Danida. Component Document: Participatory Forest Management, October 2002
Danida. Tanzania, ESP Programme Document 2000-2003, March 2000
Danida/Darudec. Identification Report: Environmental and Disaster Relief Fund
Programme Support, July 1998
Danida documents of general relevance to the ESPS:
Danida. Good Practice Paper: Environmental Sector Programming, 2006
Danida. Draft Note on Country Strategy for Tanzania, March 2006
Danida. Programme Document: Support to macroeconomic and institutional
reforms in Tanzania, 2006
Danida. Guidelines for Programme Management, January 2006
Danida. Technical Note: Monitoring of Indicators for Environment and Natural
Resources Management, May 2005
Danida. Environmental Strategy: Strategy for Denmark‟s environmental
assistance to developing countries, August 2004
Danida. Country Strategy for Tanzania, January 2002
GoT Background documents for the preparation of ESPS:
GoT/PMO-RALG. Draft Framework Design, Volume II: National Framework for
Urban Development and Environmental Management (UDEM) in Tanzania, 13 &
29 June 2006;
GoT/PMO-RALG. National Framework for Urban Development and
Environmental Management (UDEM) in Tanzania: Version 5, Final Draft –
National Policy, Institutional and Capacity Building Component of the UDEM, 21
June 2006.
GoT/ VPO-DoE. EMA Implementation Support Programme, June 2006
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87
GoT/VPO-DoE. Main Report Volume I: EMA Implementation Programme, May
2006
GoT/PMO-RALG/MNRT. Draft Administrative and Financial Manual for
Participatory Forest Management for Local Government Authorities and Regional
Secretariats, May 2006
GoT/PMO-RALG. Volume II, Framework Design: National Framework for
Urban Development and Environmental Management in Local Government
Authorities in Tanzania, May 2006
GoT/PMO-RALG. Minutes of the National Programme Advisory Committee
Meeting Number 3 Held on 26th
May 2006
GoT/PMO-RALG. Options and Issues for LGA Financing modalities, May 2006
GoT/PMO-RALG. Draft Summary Design Report: National Framework for Urban
Development and Environmental Management (UDEM) in Tanzania, April 2006
GoT/PMO-RALG. Draft Background Analysis: National Framework for Urban
Development and Environmental Management (UDEM) in Local Government
Authorities in Tanzania, February 2006
GoT/VPO-DoE. Draft Needs Assessment Report Volume I: Capacity Building for
Implementation of EMA 2005-2010, January 2006
GoT/PMO-RALG. Summary of Proposed Framework: National Framework for
Urban Development and Environmental Management (UDEM) in Local
Government Authorities in Tanzania, January 2006
GoT/ VPO-DoE. Revised Third Draft: Capacity Building Programme for
Implementation of EMA 2005-2010, December 2005: Volume I, Needs
Assessment Report, Volume II.
GoT documents of relevance for the ESPS:
GoT/ LGCDG System Steering Committee: Third Meeting of the LGCDG System
Steering Committee, Agenda Item No 5: Approval of Assessment of Councils
Funding for 2006/07, June 2006
GoT/PMO-RALG. Support to the Local Government Capital Development Grant
System: Progress Report January to June 2006 and annual Budget July 2006 –
June 2007, June 2006
GoT/MNRT. Draft Report: Consultancy Service for Development, Establishment
and Institutionalisation of National Forest Programme Monitoring Facility and
Database, June 2006
GoT. JAST, Part II: Joint Country Analysis, Draft June 2006
GoT/PMO-RALG. Option and Issues for LGA Financing Modalities, May 2006
GoT. Statement by Hon, Prof. M. J. Mwandosya (MP) Minister of State
(Environment), Vice President‟s Office, at the Donor Group Coordination
Meeting on Environment, Pemba House, Dar Es Salaam, 25 April 2006
GoT/MPEE. Master Plan: MKUKUTA Monitoring System, April 2006
GoT/MPEE. Master Plan: MKUKUTA Monitoring System, March 2006
GoT. Joint Assistance Strategy, March 2006
GoT/MoF. Channelling of Project Funds through the Exchequer System, 2005
GoT. Poverty and Human Development Report, 2005
GoT. Briefs on Poverty and Human Development Report, 2005 - Status on
Poverty in Tanzania, Poverty at the District Level in Mainland Tanzania, and
Rural Growth and Poverty Reduction in Tanzania
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88
GoT. Working Document: Medium Term Strategic Planning and Budgeting
Manual, November 2005
GoT/VPO. The Development of Indicators of Poverty-Environment, October 2005
- Working Paper for Stakeholder Consultation Workshop
- Methodology sheets for proposed PMS and sector indicators for discussion at
stakeholder consultation workshop
GoT/MCDGC. National Strategy for Gender Development, September 2005
GoT/PO. Local Government Reform Programme: Medium Term Plan and Budget
July 2005 – June 2008, June 2005
GoT/VPO. National Strategy for Growth and Reduction of Poverty (NSGRP),
April 2005
GoT/PMO-RALG. Local Government Capital Development Grant System:
Manual for the Assessment of Councils against Minimum Access Conditions and
Performance Measurements Criteria, November 2004
GoT/PO. The functions and organisation structure of the President‟s Office –
Regional Administration and Local Government (PORALG), October 2004
GoT/ VPO. Public Expenditure Review of Environment, FY 2004, May 2004
GoT. The Environmental Act, 2004
GoT/PO. Rural Development Policy, December 2003
GoT/PMO/TACAIDS. National Multi-Sectoral Strategic Framework on
HIV/AIDS 2003-2007, January 2003
GoT/PMO. National Policy on HIV/AIDS, November 2001
GoT/MLHHSD. National Human Settlements Development Policy, January 2000
GoT/VPO. National Environmental Policy, December 1997
Development partner documents of relevance to the ESPS:
DPG-E. Summary of the DPG Mapping Exercise, July 2006
DP. JAST – Joint Development Partner Response, Draft June 2006
DP Group – Environment/Poverty Monitoring, 2006
DPG-E. Overview of current and future donor assistance, 2006
DPG-E. Natural Resources – Forest, Fisheries & Wildlife, 2006
IDA. Project Paper: Tanzania – Local Government Support Project, Additional
Financing, May 2006
DP-Poverty Monitoring Group. Poverty Brief – Tanzania, April 2006
EC/AFCo. Provision of Services in the Sector of Cooperation related to Lot 6:
Environment: Draft Report Tanzania – Country Environment Study, February
2006
WB/COWI. Study on Growth and Environment Links for Preparation of Country
Economic Memorandum, May 2005
Sida/Göteborg University/Swedbio. Tanzania – Environmental Policy Brief, June
2005
Sida et al. Study on changed focus for urban sector projects in Tanzania, January
2005
DP High Level Forum. Paris Declaration on Aid Effectiveness, April 2005
Other documents:
The Foundation for Civil Society. Logical Framework 2006-08, 2006
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Economic Intelligence Unit. Tanzania Country Report, March and June 2006
Economic Intelligence Unit. Tanzania Country Profile 2005, 2006
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ANNEX D –COMPONENT 3 PFM INCL. BUDGET FOR EXTENSION
Reallocation of PFM budget to facilitate component extension from 01.07.2008 to 30.06.2009
Amounts in Mio. DKK Total 30.06.2008 30.06.2008 30.06.2009 30.06.2009 Repostings
Mio. DKK % FY 2007/8 Accumulated % Balance % FY 2008/9 Accumulated Balance at RDE
1. National PFM Framework 17.0 100 2.135 12.784 75 4.216 25 2.200 14.984 2.016 (2.016)
1.1 Service providers (contracts) and au 7.5 100 0.535 4.100 55 3.400 45 0.500 4.600 2.900 (2.900)
1.2 Equipment 2.0 100 0.200 1.534 77 0.466 23 0.300 1.834 0.166 (0.166)
1.3 Awareness Mat/Commm/Training 3.0 100 0.500 3.280 109 (0.280) -9 0.500 3.780 (0.780) 0.780
1.4 Collaborative Research Activities 3.0 100 0.600 2.400 80 0.600 20 0.600 3.000 0.000 0.000
1.5 NFP and EPU Operational costs 1.5 100 0.300 1.470 98 0.030 2 0.300 1.770 (0.270) 0.270
2. Implementation of PFM in the LGRP 24.0 100 6.450 20.160 84 3.840 16 6.300 26.460 (2.460) 2.460
2.1 Support to RAS 2.0 100 0.550 1.558 78 0.442 22 0.400 1.958 0.042 (0.042)
2.2 Support to Districts 4.0 100 0.300 3.664 92 0.336 8 0.300 3.964 0.036 (0.036)
2.3 District Operational costs 2.0 100 0.600 3.538 177 (1.538) -77 0.300 3.838 (1.838) 1.838
2.4 Investments in villages 6.0 100 2.000 4.200 70 1.800 30 2.300 6.500 (0.500) 0.500
2.5 Service Providers Cont. to villages 10.0 100 3.000 7.200 72 2.800 28 3.000 10.200 (0.200) 0.200
3. Technical Assistance 11.0 100 2.800 12.819 117 (1.819) -17 2.800 15.619 (4.619) 4.619
3.1 PFM Technical Adviser 3.5 100 0.900 4.528 129 (1.028) -29 0.900 5.428 (1.928) 1.928
3.2 PFM Financial Management Adviser 3.0 100 0.900 4.453 148 (1.453) -48 0.900 5.353 (2.353) 2.353
3.3 National financial mgt. asst. and audits 1.5 100 0.500 1.100 73 0.400 27 0.500 1.600 (0.100) 0.100
3.4 Operational expenses for advisers 1.0 100 0.100 0.735 74 0.265 27 0.100 0.835 0.165 (0.165)
3.5 Pool of internat./nat.short t. advisers 2.0 100 0.400 2.003 100 (0.003) 0 0.400 2.403 (0.403) 0.403
4. Contingency 5.5 100 0.437 8 5.063 92 0.437 5.063 (5.063)
TOTAL 57.5 100 11.385 46.200 80 11.300 20 11.300 57.500 0.000 0.000
Project time elapsed 60 months 100 72 months
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93
Projected cash flow until 30th June 2009 (revised SEP 2005)
Amounts in Mio. DKK Total 30.06.2005 30.06.2006 30.06.2007 30.06.2008 30.06.2008
Mio. DKK % FY 2004/5 Accumulated % FY 2005/6 Accumulated % FY 2006/7 Accumulated % FY 2007/8 Accumulated % Balance %
1. National PFM Framework 17.0 100 0.770 2.514 15 3.915 6.429 38 4.220 10.649 63 2.135 12.784 75 4.216 25
1.1 Service providers (contracts) and au 7.5 100 0.200 0.450 6 1.395 1.845 25 1.720 3.565 48 0.535 4.100 55 3.400 45
1.2 Equipment 2.0 100 0.070 0.534 27 0.600 1.134 57 0.200 1.334 67 0.200 1.534 77 0.466 23
1.3 Awareness Mat/Commm/Training 3.0 100 0.200 0.960 32 1.020 1.980 66 0.800 2.780 93 0.500 3.280 109 (0.280) -9
1.4 Collaborative Research Activities 3.0 100 0.000 0.000 0 0.600 0.600 20 1.200 1.800 60 0.600 2.400 80 0.600 20
1.5 NFP and EPU Operational costs 1.5 100 0.300 0.570 38 0.300 0.870 58 0.300 1.170 78 0.300 1.470 98 0.030 2
2. Implementation of PFM in the LGRP 24.0 100 2.571 3.960 17 4.300 8.260 34 5.450 13.710 57 6.450 20.160 84 3.840 16
2.1 Support to RAS 2.0 100 0.058 0.058 3 0.400 0.458 23 0.550 1.008 50 0.550 1.558 78 0.442 22
2.2 Support to Districts 4.0 100 1.500 2.764 69 0.300 3.064 77 0.300 3.364 84 0.300 3.664 92 0.336 8
2.3 District Operational costs 2.0 100 0.013 0.138 7 2.200 2.338 117 0.600 2.938 147 0.600 3.538 177 (1.538) -77
2.4 Investments in villages 6.0 100 0.200 0.200 3 0.500 0.700 12 1.500 2.200 37 2.000 4.200 70 1.800 30
2.5 Service Providers Cont. to villages 10.0 100 0.800 0.800 8 0.900 1.700 17 2.500 4.200 42 3.000 7.200 72 2.800 28
11.0 100 1.216 5.069 46 2.350 7.419 67 2.700 10.019 91 2.800 12.819 117 (1.819) -17
3.1 PFM Technical Adviser 3.5 100 0.448 1.828 52 0.900 2.728 78 0.900 3.628 104 0.900 4.528 129 (1.028) -29
3.2 PFM Financial Management Adviser 3.0 100 0.448 1.753 58 0.900 2.653 88 0.900 3.553 118 0.900 4.453 148 (1.453) -48
3.3 National financial mgt. asst. and audits 1.5 100 0.000 0.000 0 0.300 0.300 20 0.400 0.600 40 0.500 1.100 73 0.400 27
3.4 Operational expenses for advisers 1.0 100 0.020 0.485 49 0.050 0.535 54 0.100 0.635 64 0.100 0.735 74 0.265 27
3.5 Pool of internat./nat.short t. advisers 2.0 100 0.300 1.003 50 0.200 1.203 60 0.400 1.603 80 0.400 2.003 100 (0.003) 0
4. Contingency (+ex.diff.) 5.5 100 0.000 0.037 1 0.400 0.437 8 0.437 8 0.437 8 5.063 92
TOTAL 57.5 100 4.557 11.580 20 10.965 22.545 39 12.370 34.815 61 11.385 46.200 80 11.300 20
13.180
Project time elapsed 24 months 40 36 months 60 48 months 80 60 months 100
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