Geum.ru

1 Report on activities carried out during the reporting period 10

Вид материалаДокументы
4.4 Risks and assumptions
4.6 Crosscutting issues
Подобный материал:
1   ...   9   10   11   12   13   14   15   16   ...   31

4.4 Risks and assumptions


Assumptions directly or indirectly affecting the project are the following:
  • Strong and effective leadership at the sector Ministry level;
  • Commitment to the process elsewhere in Government, particularly, in the Ministry of Finance and at senior political level;
  • Broad consensus between Government and donors on key policy and management issues for the sector;
  • A reasonable degree of macroeconomic and political stability, leading to a relatively high degree of budget predictability.


The following main risks have been identified which are likely to hamper successful project implementation:
  • Lack of government commitment to greater integration with EU standards and procedures;
  • Lack of skills and expertise to prepare comprehensive sector wide programme budgets based on realistic mid-term financial estimates and performance indicators (also see special remark below);
  • Whether inter-ministerial co-ordination can be achieved in the interest of sectoral reform;
  • Whether the Ministry of Agrarian Policy can adjust its role and assume effective leadership of the sector, as a “facilitator” rather than “controller” of private sector activity;
  • Whether donor co-ordination can be achieved, as it has not been achieved to date.


Particular attention should be paid to the fact that the planning and implementation of sector-wide programmes put requirements on the overall setup and performance of a state budgetary system. These requirements are as follows:
  • Operating Mid-term expenditure framework (MTEF);
  • Sector budget presented in a performance programme format;
  • Sector priorities are backed by related budget lines, i.e. sector budget structure in line with identified priorities.

So far, these requirements are underdeveloped or lacking in Ukraine

  • There is no MTEF, both national and agricultural sector budgets are planned for one year only.
  • Though there are some elements of programme approach, performance programme budgeting is not well developed.


A number of coherent actions/steps will be required within and outside the scope of agricultural sector intervention, to ensure that identified development priorities are proper backed by related budget expenditures following MTEF. Some of which will be covered by this project; others need to be covered by interventions outside the project.


Particular area of risk that will greatly affect the project as specified in the work plan and time schedule is Step no. 2: formal agreements and understanding with Ukraine government on the type and scope of EU support and technical assistance starting in 2007. The entire work plan and schedule is based on the assumption that by mid-2006, agreements are signed between Ukraine government and the EU in order to complete the tendering process by the first quarter of 2007.


4.5 Conditionalities


Component 1

Further moves towards the sector wide approach will be conditional on the appropriate resources be made available to the responsible departments in the MAP. This can be done after a full needs and resource assessment has been undertaken within the first part of component 1. “Sector wide approach capacity development” which will commence in advance of other components or during the TOR drafting phase


It is also proposed that donors jointly support (in particular the World Bank) the allocation of additional resources to this department after the findings of the full resource and needs assessment


Component 2

2.2.1

Before commencement of this component as a minimum there should be a written Memorandum (signed by MAP MoH and State Standards) that they are committed to rationalizing the current institutional system and ideally a law establishing unified management of food safety control mechanisms ( to be reassessed at TORs stage)


2.2.3

A comprehensive laboratory rationalization plan including foreseeing a national system of reference laboratories agreed and approved before any procurement can begin.


Component 3

3.2.4 Support for the wholesale / assembly markets and accompanying market information network

Government approval of the wholesale master plan before further development or prefeasibility studies undertaken.


Component 4

4.2.1 Support in the creation of the framework conditions

Government Approval of the complex national programme which foresees the required institutional changes including the setting up of a rural development agency.


4.6 Crosscutting issues


Coherence of project objectives with cross-cutting issues is as presented in the following table.


Table 3.1. Overarching Objectives and Cross-Cutting Issues

Development/Cross-Cutting Objectives
Directly Targeted Objective
Significant indirect impact

Poverty Reduction
Yes



Good Governance
Yes



Democracy, Human Rights



Yes

Integration in World Economy
Yes



Environment
Yes



Gender



Yes

Conflict Resolution/Peace Building



Yes