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About the FACD >> Strategic Goals, Objectives and Activities to realise its Mission
External
Strategic Goal 1. Channelling foreign aid with a demand driven approach towards the prioritised sectors.
Activities:
- Ranking development sectors with their priorities in achieving self-sustained economic growth and alleviation of poverty.
- Deepening interrelationships of priorities.
- Separating project identification from the potential funding source until final selection.
- Mobilising aid resources systematically according to development approach.
- Streamlining and limiting the task of project identification at the levels of beneficiaries, line agencies and the National Planning Commission.
- Basing the project design on existing and potential strength of local institutional and administrative capabilities.
- Informing donors about the national priority sectors and projects/programs regularly
- Forwarding request for project/program assistance to donors especially to bilateral donors for the ensuing years only after the due clearance from NPC and line ministries.
Expected Outcome:
Allocative efficiency will be achieved by attempting to align foreign aid with national priority. That will ensure the delivery of outcome envisaged in preparing the project and programme. It will also help raising the return on investments and making development effort effective. Moreover, it will enhance the sustainability of the project by involving domestic stakeholders in the process of project cycle.
Strategic Goal 2. Promoting ownership in foreign aided projects
Activities:
- Enhancing participation of national stakeholders in project preparation and implementation.
- Project Implementation through separate Project Implementations Units (PIU) or Development Boards or committees will be discouraged.
- Avoiding direct channelling of foreign aid by going through the Government Budget System.
- Promoting the donor community's role as facilitators rather than implementers.
- Encouraging programs of raising expertise, efficiency and utilisation of local human resources.
- Using participation of the local human resource in each of the foreign aided projects.
- Identifying key areas where domestic expertise is scarce and selecting technical assistance to those key areas only.
- Avoiding loans for technical assistance.
- Preparing and implementing plan for each project to phase out technical assistance within the specified time period.
- Encouraging and ensuring transfer of essential knowledge and technical know-how by placing competent counterpart staff in donor-assisted projects.
- Enhancing capacity in project identification, evaluation, selection and implementation.
- Making activities economically affordable and realistic in terms of budgetary support.
Expected outcome:
Increased domestic involvement in different stages of foreign aided project cycle.
Strategic Goal 3. Reducing burden of external debt
Activities:
- Prohibiting the use of loan amount for observation visits and academic studies.
- Ensuring utilisation of foreign loan in projects promising higher returns on investments.
- Analysing various implications of each new loan before accepting it.
- Focusing on loan investment in the areas that help generate private sector activities and promote external sector transactions that enhance the foreign exchange earning capability.
- Availing foreign loan facilities in ways that reduce the loan liability of HMG occasioned by exchange rate changes and implications.
- Minimising the expenditure on consultants and foreign experts out of the loan assistance.
- Eliminating unproductive and redundant projects and focusing on key development areas.
- Developing criteria for ensuring selection of only those projects that are in line with development priority and sustainable.
- Establishing sector-wise and nation-wide merit order of projects and allotting aid resources according to the order to merit of projects.
- Linking new projects to utilise the stock of past investments and experiences.
- Matching donor's priority and excellence with development comparative advantages and programs in mobilising aid.
- Making project activities cost-effective and environment-friendly.
- Seeking grants first then only moving for highly concessional loans in searching for new borrowing.
- Emphasising co-financing arrangements through grants for financing expenses of overheads and technical support of the projects.
- Directing foreign aid toward the objective of increasing revenue mobilisation (such as increasing GDP and employment) and avoiding possibility of substituting revenue mobilisation efforts by foreign aid.
- Affecting improvements in channelling of foreign aid towards expanding private sector investments.
- Utilising existing investment by the provision of adequate O & M expenses
Expected Outcome:
Two outcomes have been envisaged 1) increase in share of grant in foreign aid 2) increased return on investments channelled through foreign loan. That will ultimately lead to relief in debt burden through decreased share of loan in foreign aid and increased capacity of debt servicing due to high returns in investments.
Strategic Goal 4. Improving disbursement ratios
Activities:
Objective 1. Improving the processing of project documents
- Reducing time period for project analysis in finalization.
- Improving co-ordination with line ministries in order for rapid analysis and finalisation of projects to happen.
- Improving communication network between concern agencies within the Government.
- Maintaining effective communication with donors.
- Making project management efficient, effective and scientific.
- Making reimbursement function effective by adopting wide reforms in the reimbursement procedure and practices.
- Ensuring timely availability of counterpart funds.
- Enhancing decentralised decision-making.
Activities:
Objective 2 Removing obstacles due to aid conditionalities
- Examining conditionalities with respect to the objectives of the project, development policies and strategies and country's realities.
- Obtaining support and commitment of all stakeholders to fulfill the conditionalities.
- Securing formal approval of competent authority in case of policy-related conditionalities.
Expected Outcome:
The disbursement ratio especially for grant assistance will be raised that will result in increase in net resources transfer and better mix of aid and loan in foreign aid.
Strategic Goal 5. Enhancing good governance in foreign aid coordination and management
Activities:
- Making information available in general about the cost and source of finance of each activity and component of foreign-aided programmes and projects.
- Facilitating public flow of information on decisions made with respect to the selection of experts, consultants and key project staff, procurement, sale or auction, prequalification and awarding.
- Making available to the interested people pre-feasibility, feasibility, audit, evaluation, performance and other reports of aid-supported activities.
- Reflecting foreign aid resources in the budget and utilise them through the budgetary process.
- Facilitating and assisting in public inquiry and set specific time periods for handling requests, dissents and complaints.
Expected Outcome:
Easy access to the information relating to foreign aid be maintained. That will enhance the broad based support in such projects. It will also help enhancing sound financial and managerial practices in foreign aided projects.
Internal
Strategic Goal 6. Enhancing the efficiency of the division
Activities:
- Aid coordination and management manual
- Regular policy dialogue
- Improved and integrated record keeping
- Database creation and LAN connection
- Rationalising tax exemptions and facilities
- Assessing foreign aid effectiveness
- Increasing field supervision of the foreign aided projects
- Uniformity in the agreements
- Establishment of project bank
- Keeping up to date overall ODA status and find country's situation.
- Finding out the policy and priorities of donors cooperation and communicate it to concerned authorities.
- Participate in bilateral and multilateral aid related and seminars
- Regular consultation meetings with donor/s on issue of foreign aid.
- Availing sufficient space and document storage facility in the division
- Establishing an account of foreign aid flow, and exemptions in the Division
- Refreshment training on negotiation skills for Officers
- Training on Project Analysis for officers
- Training on Academic English for officers
- English Language Training for Clerks
- Establishing a coordination cell to coordinate the sectoral units within the Division.
- Increasing field supervision of the foreign aided projects
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