RCID/IACC/3/97/Chapter V August 1997
ENGLISH Original: French
UNITED NATIONS
ECONOMIC COMMISSION FOR AFRICA Twenty-first Meeting of the Inter-Agency Coordinating Committee (IACC)
Addis Ababa, Ethiopia 25-27 September 1997
CHAPTER V
ANALYSIS OF RESOURCE MOBILIZATION FOR THE MAIN REGIONAL PROJECTS
SECOND MID-TERM EVALUATION OF UNCTADA II
Regional Cooperation and Integration Division, ECA, Addis Ababa, Ethiopia
RCID/IACC/3/97/Chapter V
ANALYSIS OF RESOURCE MOBILIZATION FOR THE MAIN REGIONAL PROJECTS
1. In the transport sector, 70 regional projects adopted in the Decade programme are broken down as follows: air transport (27), multimodal transport (11), ports (4), maritime transport (25) and roads and road transport (3).
2. Initiators of these projects are: (i) African sectoral organizations (AFRAA, ASECNA, AFCAC and MINCONMAR) for 25 projects in the air (17) and maritime (8) subsectors; and (ii) United Nations agencies (ECA, UNCTAD, IMO and ICAO) for 45 projects in the air (10), multimodal (11), ports (4), maritime (17) and roads (3) subsectors. Table 5 below shows the breakdown of the 70 projects per subsector and per initiating agency.
Table 5.1
AIT
HHT HPT HST RRT Total
Agencies
AFRAA
1
1
ASfiCNA
14
14
AFCAC 2
2
HIHCONHAR
8
8
ECA 1 3 1
3 8
UNCTAD
8 1 6
15
IMO
2 11
13
ICAO
9
9
Total
27 11 4
25
3 70
AIT: Air transport HST: Maritime transport
KMT: Hulthodal transports: Roads and road transports
HPT: Ports
Paqe 2
3. The analysis of resource mobilization for these projects will be carried out according to the categories of the initiating agencies.
1. Projects initiated by African organizations
4. The situation of the execution and financing of the 25 projects initiated by African sectoral organizations is shown in Table 5.2 below per sector and per initiator
Table 5.2
TOTAL*
Executed Under execution Mot started Entirely financed Partly financed Search for financing Without infonation Abandoned
Subsectors( ) AIT
17 3 8
-
10 1
4
1 1
HHT HPT
-
HST 8 3 1
-
4
-
4
-
-
RRT
-
Total
25 6 9
-
14 1
8
1 1
Initiators AFRAA
1
1
ASCECHA 14
3 8
10
1
3
-
AFCAC 2
1
1
HINCOHMAR 8 3 1
4
4
NB
,*t.
This total represents all that has been indicated froi the "entirely financed" to the
"abandoned" projects See table 5.1
5. Thus, at the level of financing, 14 projects (56 per cent) have been totally financed, which is good performance, more particularly, for ASECNA with more than 78 per cent of the initiated projects financed and MINCOMAR with 50 per cent. Conversely, AFRAA and AFCAC did not succeed in securing funding for any of the initiated projects. These performances are confirmed at the execution level, with 15 projects executed or under
RCID/IACC/3/97/Chapter V Page 3
execution, representing 60 per cent on the whole, about 78 per cent for ASECNA and 50 per cent for MINCOMAR.
6. Pending confirmation of all that has been indicated as contained in the documentation consulted, ASECNA might have succeeded in mobilizing US$2.98 million as base capital and US$54.94 million from external resources for the 11 projects executed or under execution, i.e. a total of US$56.92 million. The total cost of all the 14 projects initiated for ASECNA was estimated at US$56.01 million in the Decade programme.
7. The resources mobilized for MINCONMAR, all from external sources, amount to US$7.27 million as against an estimated amount of US$12.37 million, representing nearly 59 per cent. This performance is quite satisfactory.
2. Projects initiated by the United Nations agencies
8. The situation (execution and financing) of 45 projects initiated by the United Nations agencies is presented in Table 5.3 below, per sector and per agency.
Page 4
Table 5.3
TOTAL*
Executed Under execution Hot started Entirely financed Partly financed Search for financing Without information Abandoned
Subsectors(**)
AIT 10
2 1
-
2
1 7
KMT 11
1
1
4
6
HPT 4
2
2
HST 17
1
1 2
2 10
3
RRT 3
2
1
1 1
Total
45 2 5
1 6
2 16
12
9
Initiators AFRAA
8
3
1
2 4
1
ASCECNA 15
2
1 3
4
8
AFCAC 9 2
2
7
MINCOHHAR 13
1
12
f ) See table 5.2 f ) See table 5.1
9. Three preliminary remarks should be made on this table: (i) low resource mobilization, less than 18 per cent of the projects; (ii) the high number of abandoned projects, i.e. 20 per cent of the projects, which casts doubts on the validity of the initial selection; and (iii) the high number of projects without information, i.e. more than 26 per cent of the projects. This is not acceptable by both the organizations and agencies concerned.
10. The resources mobilized total US$6.43 million as against an estimated amount of US$61.04 million i.e. about 10.5 per cent. This performance is very low performance.
However, the performance appears good for UNCTAD which, with about 31 per cent, has mobilized US$5.9 million as against US$19.08 million and 25 cents, very low for the ECA (a little more than 2 per cent i.e. US$180,000 as against US$7.94 million) and ICAO (less than 2 per cent i.e. US$350,000 as against US$25.25 million) and none for IMO (nothing out of US$8.77 million). This situation can only be explained by the divestiture of UNDP, the major funding body of these agencies, from financing the Decade programme.
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3. Major problems
11. By isolating ASECNA which is one of the special agencies, resource mobilization for regional projects may be considered fairly satisfactory with US$13.7 million mobilized as against US$84.81 million estimated, representing about 13.41 per cent. As far as ASECNA is concerned and subject to the reservations made under paragraph 194, the resources mobilized amount to US$70.62 million as against the estimated US$140.82 million.
However, about 23 projects have been fully or partly financed out of a total of 70, representing only 32.8 per cent. This situation calls for an appraisal of the following problems:
(a) the organizations whose programmes are usually financed with UNDP resources, have mobilized few resources because of the defection of their funding agency;
(b) associations like AFRAA and AFCAC seem to have structures unable to mobilize resources for development projects. If this situation can be deemed understandable in respect of AFCAC whose members have no financial autonomy, as most of them are government services, it is less understandable in respect of AFRAA. Here, only the lack of determination by its members i.e. airlines, can explain why it was not able to mobilize US$400,000 for a data bank whose usefulness to these companies needs no further proof. This confirms the doubt looming over the determination of African airlines to move towards effective cooperation and less still towards integration;
(c) the quality, indeed, the relevance of adopted national projects. In fact, the rate of abandoned projects i.e. about 15 per cent (10 projects out of 17), appears to be less disquieting, given the criteria established for selecting projects;
(d) furthermore, it is also necessary to note that, besides the projects presented by ASECNA, most of these regional projects do not meet the criteria for funding by the main financing agencies, operating in Africa, with the exception of the UNDP. As a matter of fact, the World Bank group has no mechanism for the financing of national projects, and the
Page 6
African Development Bank group and the European Development Bank require the sponsorship of at least a certain number of States. Finally, concerning project initiated by the United Nations agencies, the supervision of projects has been confused with its execution.
This goes counter to the rules and procedures for the acquisition of goods and services from the above-mentioned funding agencies.
12. In conclusion, if the mobilization of resources necessary for the funding of regional projects initiated by African sectoral organizations appears satisfactory on account of the support from the member States, that of resources for projects initiated by the United Nations agencies require that resources come, either from the regular budgets of the agencies or from UNDP funding. Failing, such mobilization becomes difficult unless the project is sponsored by African States through subregional economic cooperation organizations. In this case, the United Nations agency must act as an executing agency for the subregional economic cooperation organizations concerned.
