Development Cooperation

General introduction

The Netherlands is one of the most important development partners of the government of Uganda. Per annum the Netherlands government donates approximately 50 million € (approx. 112 Billion Uganda Shillings) to Uganda in aid, including for humanitarian purposes. The Netherlands policy for development cooperation in Uganda is laid down in the Multi Annual Strategic Plan of the Netherlands embassy in Uganda (2008-2011) of which below you will find a summary.

Uganda and the Netherlands have shared interests. There is overlap in our policy agenda’s, concerns about good governance in Uganda notwithstanding, the Ugandan government has been able to create a rather stable Uganda and is genuinely committed to parts of the poverty alleviation agenda. The overall macro economic policies of Uganda are good. The very high population growth remains a concern however and poor infrastructure is a binding constraint to economic growth in the country. There are serious challenges with leakages, waste, inefficiencies and corruption in the production of public goods and services. The cessation of hostilities in the North is a very positive development which seems to radiate some stability in the region as well. For all the above improving dialogue with the Ugandan government will be crucial in the coming years.

One of the lessons learnt from the last Multi Annual Strategic Plan was that the integrated approach to development that the Netherlands embassy uses, has worked well. In Uganda there are chances for progress with MDG-achievement in the education sector and direct involvement with the police has been a good tool to support stability in the country. In terms of building a democratic Uganda, the embassy feels it is more realistic to promote multi voice in support of the emerging multi party system. The embassy’s strength was being a reliable partner that works in a flexible and delegated way.

On the basis of our comparative advantage and the agreements reached with other donors in the context of the Uganda Joint Assistance Strategy (UJAS), the Division of Labour in Uganda and the EU-code of conduct, the Netherlands embassy chooses to focus on only two sectors (1. education and 2. justice, law and order) and three cross cutting issues (1. Northern Uganda, 2. political governance and 3. taxation and accountability). The embassy is of the opinion that these sectors and cross cutting issues are very well suited to add to the policy intensifications as laid down in the policy letter to parliament by the Netherlands Minister for Development Cooperation (‘Our common concern’). For each of the sectors and cross cutting issues it will be determined where there is overlap between the agenda of Uganda and the Netherlands, where overlap can perhaps be expanded and where there are risks that need mitigation. For the area of overlap, (sub)sector budget support is considered to be the most effective aid modality. The Netherlands budget support will be part of the Joint Budget Support Framework and will over time be based upon ex-post assessments of achieved results instead of ex-ante assessments of commitment of the Ugandan government. In this way results will be linked much stronger to resources as part of a contractual partnership with the Ugandan government. For expanding the overlap and mitigating the risks context supporting project activities will be identified. The starting point for the embassy is a base case scenario of approximately 35 mln € of aid (excluding humanitarian aid) per year. Based on an assessment of predetermined criteria (to be evaluated in 2009), the embassy suggests to either move to a high case scenario (approx. 50 mln € with a higher % of budget support), or to go to a low case scenario (approx. 15 mln € without budget support in that case), or to remain at the base case level (35 mln €).

As described above, a major characteristic of the Netherlands development co-operation programme with Uganda is the shift from project related aid programmes towards budget support. This implies that much of Dutch aid is no longer linked to specific projects, but goes straight into the Uganda government budget. The rationale for moving towards budget support is the confidence that the Netherlands has in the macro- and socio-economic policies of Uganda. Per year approximately 63% of the Dutch aid is transferred through the budget support modality. 
The releases of budget support will depend on the progress made against agreed benchmarks in the fields of education and justice, law and order and good governance. These benchmarks are agreed upon by different donors and laid down in a so called joint assesment framework. In the two sectors in which the Netherlands government is committed to a long-term co-operation, the engagement is managed through the government led sector-wide-approach.

Education

In 1997, the Ugandan government made the decision to provide free primary education for four children from every family. This is part of a strategy aimed at achieving universal primary education (UPE) in Uganda. Ambitious goals include the construction of thousands of classrooms, the provision of textbooks for all children, training and hiring of thousands of primary school teachers and providing them with professional support. Government spending on education has risen considerably to 30% of the budget. However there is still a lack of qualified teachers, textbooks and classrooms. 
The Netherlands embassy has been involved from the start in UPE. The representative of the Netherlands embassy, together with other stakeholders, is involved in policy dialogues at all key stages of the process. In this respect the policy of the Netherlands embassy is aimed at achieving the Millenium Development Goal nr. 2: (all children to achieve a full cycle of primary education by 2015). Until however a big percentage of pupils still does not complete the primary school cycle. The most important challenge for the future therefore is to ensure higher completion rates while at the same time keeping in view the challenges associated with the transition from primary to secondary school where currently, only 40 per cent of primary school leavers are absorbed. Other challenges are that the government retains education at the heart of its strategies to eradicate poverty and that budgeting and monitoring processes continue to improve. The embassy also funds a bursary scheme for the Northern Region in order to promote reconciliation and to ensure meaningful engagement of beneficiaries in development activities.

Also important to mention is that the government of Uganda has carried through a far-reaching process of decentralisation (the vehicle through which education services are delivered). Decision making powers, staff, and resources were transferred from the different national ministries to local councils. Local politicians are now accountable to the people who elected them. The general feeling is that local service delivery has been improved under the new system. In order to enhance the performance of local governments in implementing their constitutional and legal mandates for decentralised service provision one of the pillars of the Netherlands funded Local Government development Programme is the incentive system. This incentive system rewards good performance and sanctions poor performance. Poor performing local governments are supported through the capacity building grants. LGDP was based on the principles of participatory planning, involvement of all levels of LGs in the decision making and service provision, as well as the creation of ownership and sustainability of the investments. The Netherlands contributed US $ 5 million per annum to this national programme. In addition, the embassy also supported the fiscal decentralisation strategy of the Ugandan government. This strategy aims at streamlining and simplifying all central government transfers to local governments, but also at improving the tax collection system. In 2007 LGDP-I and II evolved into a Sector Budget Support Programme called Local Governement Sector Investment Plan (LGSIP). This Plan is the most comprehensive Local Government plan to date. The Netherlands together with some other donors support the LGSIP with 5 million € per year.

Justice, Law and Order Sector

The Justice, Law and Order Sector in Uganda is faced with chronic systemic constraints that hamper improved access to justice and service delivery and maintaining law and order. The sector is constrained by limited human resources and unsuitable accommodation for courts, prisons and police. Corruption, case backlogs and inefficiencies have also had a serious impact. These constraints are compounded by limited investment and decreasing funding levels from the government. 

The Ugandan authorities, in close collaboration with development partners, have drawn up a Justice, Law and Order Sector Reform Programme. This programme turns out to be a significant innovation for developing countries as the first attempt to a coordinated sector-wide reform policy. The underlying Strategic Investment Plan for the sector represents the assessment of the problems and challenges facing Uganda's justice system. 
Ten institutions, like the Judiciary, Prison Service, Police Force and Directorate of Public Prosecutions joined hands in developing this plan. The goal of this plan is to enable the people of Uganda to live in a safe and just society. and contribute to the eradication of poverty. This will be achieved through justice services and institutions, supported by legal education and reforms, which are accessible to the people of Uganda, especially the poor and the vulnerable. 

The representative of the Netherlands embassy is currently the chair of the donor group in the Justice, Law and Order Sector. The group meets once a month and co-ordinates its work with the Sector Secretariat within the Ministry of Justice, which has day-to-day responsibility for managing the reform programme.

Apart from the above described JLOS-activities the Netherlands also funds a number of human rights projects. The Netherlands embassy has commissioned the study "Beyond workshops, challenges and strategies in human rights interventions in Uganda". The study aims to encourage all human rights organisations to reflect on the rationale and effectiveness of their work. It seeks to be practical and realistic and therefore focuses on the strategies and skills relevant to human rights work.
The Netherlands embassy engages more actively in support of and dialogues with local HR NGO's and the Uganda Human Rights Commission, especially with respect to torture, women's rights and the situation in the North. 

Also within this respect the Netherlands embassy is active in the field of gender (especially women’s rights). The empowerment of women is a pre-requisite to poverty reduction and sustainable development. It has been widely acknowledged that although Uganda has gender sensitive laws and policies, they have not been fully implemented. To support the efforts of the Ugandan government in this respect, the embassy advises on the implementation of gender sensitive policies in the three priority sectors of the Netherlands government, namely education (improve quality by addressing gender concerns in education), local governance (establishing gender responsive local councils), and justice, law and order (ensuring gender sensitive laws) and strengthen the women's movement.

Cross cutting issues

Besides the focus on the two sectors, the Dutch Development Co-operation in Uganda pays specific attention to three cross cutting issues (political governance, Northern Uganda and accountability/taxation) which are key areas with a broader impact and/or which strengthens the efforts in the two priority sectors.

Political govervance

Uganda has only recently moved from a “no-party system” to a multi party democracy. The Netherlands embassy inter alia funds an organisation that assesses the performance of the members of parliament. The Netherlands embassy also joined a multi donor ‘Deepening Democracy Programme’. In general the embassy is interested in supporting the expression of multiple voices since it is felt that this will build and strengthen democratic tendencies in Uganda and support poverty eradication.

Northern Uganda

The Northern part of Uganda has been hit by a 20 year war between government troops and the LRA. Almost two million people had to flee to Internally Dispalced Camps. All poverty indicators are higher in Northern Uganda than in the rest of the country. It is for this reason that the Netherlands embassy is very active in Northern Uganda. It plays a political role in support of the peace process, it funds two large bursary schemes that pay school fees for children that have been abducted by the LRA and it gives substantial support to the overhaul of the education sector in the war affected regions. In terms of Justice, Law and Order, the embassy has supported the rebuilding of the police, courts and prisons since there has been a cessation of hostilities in the north. Special, additional, resources will be made available to support the implementation of the Peace, Recovery and Development Programme for Northern Uganda in 2008 and 2009.

Accountability/taxation

Public procurement is an area of government activity in which the risks of corruption are high, considering the value of goods and services procured (estimated at more than 800 million Euro), the strong interest of business and the authority given to government officials to award contracts. The objective of the Netherlands embassy is to contribute to a public procurement process that enhances the effectiveness and efficiency of government spending and limits corruption. The embassy is a lead donor in the procurement working group, monitoring progress of procurement reforms, bringing to attention irregularities in procurement processes, and giving financial support to the Public Procurement and Disposal of Assests Authority.

On taxation the Netherlands embassy contributes to a basket fund in support of a modernisation plan for the Uganda Revenue Authority. Proper taxation will supply the Ugandan government with sufficient funds to deliver good services to the population. When the Ugandan tax base is brought to an acceptable standard it is expected that the population will demand value for its money thereby again increasing the quality of services delivered.

ROYAL NETHERLANDS EMBASSY: SMALL PROJECTS PROGRAMME ODA

Guidelines dated January 2008

PURPOSE

The Royal Netherlands embassy (RNE) has, within clearly defined conditions, the possibility to give financial support to small projects directly benefiting  and improving the well-being of poorer groups of people in the society.

The programme is intended to be an incentive for target groups in their work undertaken for community development activities that are focussed on poverty alleviation and improvement of livelihoods.

The embassy will assess project proposals using the following guidelines:

CONDITIONS

1.The required assistance can not exceed the equivalent of EURO 25,000. 

2.The project duration cannot exceed 12 months. The support by the embassy should result in the completion of the project.

3.The organisation should be officially registered as an NGO or anon-profit making organisation. A copy of a recent and updated certificate of registration should be enclosed.

4.The project proposal should give a clear statement/explanation of the policy and objectives of the organisation.

5.The target group has to be actively involved, and has to make contributions to the project in the form of funds, labour, transport and/or otherwise.

6.A project should benefit the community at large.

7.A project should be financially sustainable in the sense that after the completion of the project the target group can meet the recurrent costs.

8.A detailed budget that is clearly linked to the activities planned should be presented.

9.The organisation should have its own bank account.

RESTRICTIONS

10.The embassy will give priority to projects from the following districts: Kaabong, Kotido, Abim, Moroto, Nakapiripirit, Kapchorwa, Bukwa, Nebbi, Arua, Maracha, Koboko, Yumbe, and Moyo.

11.Utility costs such as salaries (labour) and running office costs should be met by the project itself.

Consumables such as petrol, fertilizers, animals, animal feed and seeds are not covered by the programme.

12.The following type of project proposals do not qualify for funding by the programme:

activities in support of an election campaign

a handout for immediate consumption e.g. food aid

emergency relief

airfares, transport costs and allowances

support for individuals

salaries and other recurring costs

scholarships

savings & loan schemes

private commercial initiatives

CONTRIBUTION

13.The embassy’s contribution will be paid in 2 instalments, 80% after signing of the contract and the remainder after successful completion of the project.

14.After having received funds from the embassy, the applicant is expected to present:

A final report, stating the impact of the project.

A financial report, accounting for the utilisation of the assistance. All original invoices as well as original receipts must be enclosed with the financial report.

15.Any unspent and unaccounted funds should be reimbursed to the embassy unconditionally as they cannot be used for other activities without the written approval of the embassy.

Applications should be submitted to the following address: 

Royal Netherlands embassy

Attn: Program Officer PKP

P.O. Box  7728, Kampala   

PROJECT PROPOSAL OUTLINE

GENERAL REQUIREMENTS:

1.                    The project proposal should be accompanied by a cover letter.

2.                    A copy of a recent and updated certificate of registration with the Ministry of Internal Affairs has to be attached to the proposal.

PROJECT PROPOSAL OUTLINE:

1. Basic information and project summary
1.1 The project title
1.2 Address and location of the project
1.3 The organisation or people responsible for the project
· Name of the organisation
· Address
· Telephone number
· Fax number
· Email address
· Name of contact person
1.4 Short and clear statement of the overall purpose of the project

2. Project description
2.1 Why is the project necessary: provide information on social, cultural, health, economic, political, geographical and other factors contributing to the issues/needs.
2.2 What are the objectives of the project?
2.3 Who are the project beneficiaries?
2.4 What will be the effect of the project on the target group?

3. Workplan
3.1 What activities will take place in order to achieve the objectives?
3.2 What is the time required for the implementation of the project?
3.3 How will the monitoring of the activities take place?

4. Constraints
4.1 What are the possible problems that might hinder the achievements of the project?

5. Sustainability
5.1 Will the community or organisation be able to continue the project activities without external funding? Please explain how?

6. The Budget
6.1 Give a complete financial breakdown for the duration of the project. Ensure that items in the budget relate to the project activities and workplan.
6.2 How will the community or organisation contribute towards the budget?
6.3 Are there any other sources of income that will contribute to the project