UNDG Iraq Trust Fund: 2009 Progress Update (1

January – 31 October 2009)

Presentation to the IRFFI Donor Committee

Baghdad, Iraq, 8 November 2009

1

Highlights 1 January- 31 October 2009

• Ninth Progress Report for 1 January – 31 December 2009 issued in May 2009

• Progress in the following areas:– Continued implementation and monitoring of projects– Development and finalization of pipeline with 30 projects valued at

over $135 million – 110 individual agency projects operationally closed (51%)– 45 individual agency projects financially closed/final stages (21%)

• Progress IRFFI Closure benchmarks• Advanced preparations for Lessons Learned and Project

Evaluations underway to inform UNDG ITF contributions to Development Effectiveness 2

Project Highlights/Achievements• 7000 election observers contributed to positive outcome of KRG

elections; over 270,000 voters educated• Rehabilitation of 3 major power stations complete (over $57 million)• Civil Society Organizations contribute to and endorse Iraqi’s first

Universal Periodic Review Stakeholder Report• A study that revealed rapid decline (70%) in Karez (underground water)• Board of Supreme Audit (BSA) project near completion with training over

430 BSA auditors• 1st chlorination system that conforms to international standards now

providing 1 million inhabitants with improved water quality • IHEC Lessons Learned/Planning Conference reviewed

achievements/shortcomings in 2007/08 in planning for KRG and Council of Representatives elections

• Several Agencies developed/sign Joint Programming Assistance/Strategies with key sectoral counterparts in 2009

3

Highlight of Project Challenges• Mussayib Gas Power Station – Phase II $33 million

– Required spare parts fully procured, but installation delayed. New estimate of civil works is $20 mill, while only $12 mil was original bid. Contributing factors: MoE requested subcontracting of civil works . Increase costs between 2005 to 2008, when new estimate provided by contractor.

• Facilitating Reconciliation in Iraq through Constitutional $6 million Review and National Dialogue– Implementation of activities is reliant upon the CRC/CoR full participation. Due to

elections and security situations (Basrah and Sadr City), study tours and round tables could not take place. Political necessity overtakes political objectives.

– Inability to achieve compromise on key issues, difficult process of reaching consensus over electoral law as well as very sensitive process of delineating disputed internal boundaries resulted in partial shift of political attention to areas other than Constitutional Review Process.

4

Project Implementation Status(as of 31 October 2009)

• 165 total projects/joint programmes• 89 projects operationally closed projects (54% of total) or

(51% of 110 individual agency projects)• 45 individual agency projects financially closed/final stages (21%)

5

Sector # Projects Active Joint Programmes Operationally ClosedProjects (projects/joint programmes)

Education 26 8 7 18Water & Sanitation 16 5 6 11Health & Nutrition 22 11 6 11Housing & Shelter 4 2 1 2Food Security & Agriculture

24 14 2 10

Protection 14 7 2 7Governance 34 16 3 18Economic Reform & Diversification

25 13 3 12

Total 165 76 30 89

• PricewaterhouseCoopers Independent Evaluation (2006)

• Scanteam (Norway) Independent Evaluation (2004-07)

• Report of the UN Board of Auditors (2007) • EC Verification Mission (2008) • Agency level evaluations• Agency level Internal/External Audits

6

Evaluation Undertaken To-date

Transparency

• IRRFI/UNDG ITF website provides detailed, timely information in the following areas:– Project approvals at agency/sector levels– Programme implementation status (fiches)– Project level contracts commitments and

disbursements– Donor contributions– Financial performance – Contract Awards data

7

Fund Closure Updates

8

Activity Timeline Status

Donor Contributions 30 June 2009 No new contributions

Project Approval 31 December 2009 • 30 projects valued at over $135 million • Reschedule – 30 June 2010

Finalize contractual commitments

31 December 2010 Reschedule – next DC meeting

Projection of Uncommitted Funds

31 December 2010 Same as above

Agreement on utilization of/disposal of unspent funds/balances & modalities

June 2011 Same as above

Project implementation and complete and satisfaction of commitments and liabilities

2011-2013 over 51% projects operationally closed and 21% financially closed

9

Fund Closure Timetable(Update as of 31 October 2009)

Donor Deposits

June to October 2009 :• No new contributions received

Release of contributions from existing agreements:• EC $ 22.09 million (October 2009)

10

Financial Pipeline by Sector (as of 31 October 2009)

Sector Balance of Funds(US$ millions)

Project Pipeline Amount (# projects)

Balance after Pipeline

Education 5,307 5,717 (3) (410)

WATSAN 10,918 12,900 (2) (1,982)

Health 9,842 13,055 (7) (3,213)

Housing/Shelter - - -

Food Sec/Agriculture 848 3,494 (2) (2,646)

Protection 8,008 13,483 (5) (5,475)

Governance 88,253 90,750 (11) (2,497)

Economic Reform 23 - 23

Unearmarked 4,837 - 4,837

Returned/Interest 7,590 - 7,590

Total 135,626 139,399 (30) (3,773)

Pipeline Approval Timeline

Phase Date Number Projects

Amounts (US $ mil)

Finalized 31 Dec 2009 8 $83.55

Elections 30 June 2010 5 $24.29Under finalization 30 June 2010 17 $32.07

Total Transferred 30 June 2010 30 $139.91

12

Financially Closed Projects

• 45 individual agency projects financially closed/final stages (21%) Increase in financially closed projects grew

from 8 to 19 since 30 June 2009

• $7.79 million refunded by Agencies to the UNDG ITF following financial closure.

13

Financial Updates

14

Project Approval & Transfer Status1 January-31 October 2009

Sectors Projects Approved Transferred (000s)Education - -WATSAN - -Health/Nutrition - -Housing/Shelter - -Food Security/Agriculture• Release of 2nd tranches 2 project $ 3,250,257

Protection 2 project & 1 joint programme $5,674,182

Governance• Release of 2nd tranches

2 projects2 projects

$8,000,000$1,374,791

Economic Development 2 $7,137,722TOTAL 6 new projects

& release of 4 tranches

$25,436,952

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Approved Funding & Sector Distribution(As of 31 October 2009)

16

Education - 26 projects $200.95

16%

Water & Sanitation - 16

projects $72.99

6%

Health - 22 projects $173.12

14%Housing & Shelter -

4 projects$27.53 mill, 2%

Food Security, Agriculture, Food

Assistance - 24 projects $145.19

12%

Governance - 34 projects $310.30

25%

Economic Reform & Diversification - 25

projects $250.86

20%

Protection - 14 projects $62.28

5%

PwC and Pilgrim Stampede - 1

projects $0.30

0%

Donor Deposits by Sector(as of 31 October 2009)

17

Educa-tion;

208.92597343

; 15%

Water & San-

ita-tion;

76.70910518;

5%Health, $145.95 10%Housing & Shelter, $19.12

1%

Food Sec/Assist, Agriculture$113.83 , 8%

Gover-nance; 381.958468482999; 27%

Economic Reform & Di-versification;

251.87638057; 18%

Protection; 54.70142; 4%

Un-ear-

marked;

158.959345410001; 11%

Un-Al-located Interest, $7.59

1%

Donor Gross Deposit ((US$ mill)

EUROPEAN COMMISSION 590.46

JAPAN 360.95

SPAIN 93.17

CANADA 63.79

UK 55.54

ITALY 39.23

AUSTRALIA 31.66

KOREA 21.00

SWEDEN 13.66

DENMARK 12.41

GERMANY 10.00

TURKEY 9.00

FINLAND 7.70

NORWAY 7.01

NETHERLANDS 6.70

INDIA 5.00

KUWAIT 5.00

QATAR 5.00

USA 5.00

GREECE 3.63

NEW ZEALAND 3.36

LUXEMBOURG 2.32

BELGIUM 1.32

IRELAND 1.23

ICELAND 0.50

TOTAL Deposits

EARNED INTEREST 65.53

TOTAL Deposits + Interest

1,354.64

1,420.17

Agency Commitments & Disbursements(as of 30 September 2009)

Agency Commitment %

Disbursement %

ESCWA 91 87

FAO 84 80

ILO 64 48

UNDP 71 75

UNEP 96 99

UNESCO 100 99

UNFPA 92 78

UN-HABITAT 75 56

Agency Commitment%

Disbursement %

UNHCR 100 100

UNICEF 83 67

UNIDO 53 51

UNIFEM 86 84

UNOPS 87 78

WFP 100 100

WHO 93 89

Average 81 7618

Sector Commitment/Disbursement Rates

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Contract Rate as of 31 December % Committed % Disbursed

Education 87 77Water & Sanitation 88 75Health & Nutrition 87 73Housing & Shelter 90 90Food Security/ Agriculture 82 79Protection 54 63Governance 79 79Economic Reform/ Diversification 76 73

Average 81 (previous rate 77 )

76 (previous rate 69)

0102030405060708090

87 88 87 90 82

54

79 76 8177 75 7390

7963

79 73 76

% Committed

% Disbursed

Expenditure by Sector

20

Expenditure by Sector

as of 31 December 2008

171,703 85

61,764 84

147,509 85

23,967 87

113,809 80

Protection 34,861 62

Governance 242,607 80

Economic Development 192,426 79

Total Funds 988,939 81

Percent of

Funding

Education

Water and Sanitation

Health

Housing & Shelter

Food Security, Agriculture, Food Assistance

Sector Outcome

Team

July 2004-December

2008

Personnel106,77311.4%

Training48,8125.2% Other Direct

Costs33,4963.6%

Contracts, Supplies,

Commodities, Equipment and

Transport744,59479.7%

• Personnel: remains relatively low at 11.4%.(includes international /national staff, and Travel component)

• Contracts, Supplies, Commodities, Equipment and Transport: together account for 79.7%

• Other Direct Costs: is at 3.6% (includes Security component)

• Indirect Support Costs: averages 5.9%.

21

Distribution of Expenditure by Category (US$000s) (as of 30 June 2009)

 

Awards by Country:– Volume:

• Iraq: 1,390 awards• Jordan: 442 awards • UK: 160 awards

– Amount:• Iraq: $168,403,908 • Japan: $69,329,692 (31 awards)• UK: $60,141,256

Value of Awards$ 618,179,652 million

Number of Awards2,914 total

22

Procurement Update(as of 30 September 2009)

Implementation Challenges

23

Monitoring Project Implementation Challenges

As part of the UNDG ITF Steering Committee’s ongoing oversight role in 2008, 19 UNDG ITF projects were identified based on the following categories:• UNDG ITF programmes/ projects that have a less than 50 percent

disbursement rate beyond the original project duration date.• UNDG ITF programme/ projects that underwent major scope in revision

due to government review or other mitigating circumstances.

As of October 2009, the status of the 19 projects was as follows:• 58 percent (11 projects) of the 19 identified projects are closed; • 21 percent (4 projects) will be closed by December 2009; • 16 percent (3 projects) will be closed by March 2010; • 1 project will be closed in June 2010.

24

Major Challenges Identified

• Lack of institutional capacities.• Shortage of qualified contractors and issues

related to procurement and shipment. • Volatile and fragile security conditions leading

to remote programme/ project management.• Travel restrictions for Iraqi citizens. • Lack of capacity to undertake strategic and

comprehensive planning.• Overly optimistic planning by Agencies

25

Sector Updates

26

New Sector District Maps

27

New Sector Thematic Maps

28

WATSAN • Labs Information Management Systems software complete for MoMPW

and MoEnv in all 15 governorates including Baghdad. Training conducted for 61 governorate lab staff from ministries.

HEALTH • Emergency assistance to vulnerable populations (720,000 people)• Drafted/initiated implementation of H1NI pandemic preparedness plans

with MoH and GoI. Mobile health education campaigns in high risk areas took place for 40 days.

HOUSING & SHELTER • Acquired land in 4 governorates to construct 400 housing units for

internally, displaced persons/returnees. Design completed. Cost-sharing arrangement developed with local authorities to construct 64 shelter units in governorates.

• Completed rehabilitation of 11 schools

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EDUCATION • National Education Strategy under development with PMO, MoEd, MoHE, MoPDC and Parliament• 200 unemployed out-of-school youth from Marshlands attended short-courses in construction trades as alternative education activities.

Food Security, Agriculture & Food Assistance• Constructed Huweze Hatchery in Marshlands and 120 structures to

collect spring water and river diversion in agriculture areas• 400 veterinarians implementing zoonotic/ transboundary disease

survey

PROTECTION• National Policy on Displacement launched• 3080 mobile team visits sites to pre-identify needs and future projects• 90% of newly arrived IDPs registered, 100% birth certificates issued• 15.6 kilometers of contaminated land cleared by land mines/explosive

remnants in Basra.

GOVERNANCE• Communication network developed linking IHEC HQ with 19

Governorates Electoral Offices• Iraqi Legal Database launched containing Iraqi laws/regulations

published in Official Gazette from 1917 to 2008.

30

Economic Reform and Diversification • construction of 3 local markets and 4 pedestrian bridges completed• Loans distributed for 113 business start-ups and 96 existing

businesses• 253 SME entrepreneurs supported in creation/expansion of

businesses