URU, Alm.del - 2022-23 (2. samling) - Endeligt svar på spørgsmål 112: Spm. om, hvorfor det offentliggjorte management response fra ministeriet til evalueringen af Danida Sustainable Infrastructure Financing kun er et udkast, og om ministeren vil fremsende den endelige version af ministeriets svar på og handlingsplan for opfølgning på evalueringen

Udenrigsudvalget 2022-23 (2. samling)
URU Alm.del
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DANIDA SUSTAINABLE INFRASTRUCTURE FINANCE EVALUATION FOLLOW UP PLAN – July 2023

Report Recommendation

Key Recommendations:

Upgrade the Results Measurement

System

MFA management response

1.1

Need to strengthen the focus on

results measurements, both in the

preparation and implementation

phase, and after construction

completion. Projects should be

clearer in defining their contribution

to the poverty reduction objective,

addressed through the improvements

in the lives of the ultimate

beneficiaries in different poverty

dimensions

IFU proposed actions

1.1



IFU to develop impact screening (checklist tool) to

ensure focus on impact and poverty focus at all relevant

stages along the project cycle.

MFA (GDK)/DSIF to agree on new format for results

reporting, to be further elaborated following

administrative review report and included in the updated

administrative agreement.

DSIF to develop a monitoring and evaluation plan to

ensure the monitoring, review, evaluation, and closure of

DSIF projects.

DSIF will work to ensure appropriate alignment and

integration with the IFU Annual Report with the aim to

include DSIF in IFU Annual Report 2022.

Status



First draft

aug.23



3Q23



Ongoing



Done



Ongoing

2.1

Ongoing.

Meeting planned

for 2H23.

MFA should increase its assistance to

DSIF in the preparation phase,

including ensuring that appraisal

reports are fully compliant with Danida

policies and strategies

2.1.

MFA assistance should be improved

in the short-term, not just during the

appraisal but also in reviewing

Terms of Reference (ToR) for

feasibility studies. Delays and

duplication should be minimized.

2.2.

MFA to reach internal agreement on

dedicated relevant resources. MFA

and IFU will update the

administrative agreement and

overview of responsibilities

accordingly.

Ensure appropriate alignment and integration with the

(incoming) IFU Investment Management System (IMS)

(ongoing).

2.1

Ensure appropriate alignment and integration of

requirements, e.g. regarding poverty focus and institutional

ownership, specified in TORs for Feasibility Studies and

Appraisal. Joint MFA/ELK-IFU/SI meeting 2H2023 to give mutual

update of needs and competencies and make “gap analysis”

2.2

UM-IFU admin agreement outlining roles and responsibilities

updated



2.2

3Q23

URU, Alm.del - 2022-23 (2. samling) - Endeligt svar på spørgsmål 112: Spm. om, hvorfor det offentliggjorte management response fra ministeriet til evalueringen af Danida Sustainable Infrastructure Financing kun er et udkast, og om ministeren vil fremsende den endelige version af ministeriets svar på og handlingsplan for opfølgning på evalueringen

DANIDA SUSTAINABLE INFRASTRUCTURE FINANCE EVALUATION FOLLOW UP PLAN – July 2023

Consider undertaking untied aid

projects

3.1.

Explore ways of untying projects in

cases where it would allow better

synergy with other Danish

engagements, such as the Strategic

Sector Cooperation (SSC)

3.1

Develop and ensure learning from pilot projects in South

Africa and Indonesia. Assessment of projects ongoing.

Suggested untied setup to be elaborated during 2023

3.1

Ongoing.

Pilot projects

identified and

under

preparation.

DSIF calculation

model updated to

cater for untied

projects.

4.1

Ongoing

Specific Recommendations:

Recommendations regarding

relevance and complementarity with

Danida Strategies

4.1.

DSIF sector focus reviewed and

refined on regular basis

4.2.

Continue to engage with

stakeholders in the Danish

business community

4.3.

Stronger alignment with other

Danish engagements and greater

use of embassies, in particular

concerning Strategic Sector

Cooperation (SSC)

4.4.

Continue to explore (untied) co-

financing of projects considering

envisioned benefits and potential

disadvantages.

Recommendations regarding DSIF

Mandate

4.1

Will be explored as part of development/scoping of new DSIF

projects, that could fall under the “transformational projects”-

currently ongoing in e.g. in Indonesia, South Africa ongoing. To

be discussed at semi-annual steering committee meetings.

4.2

Regular meetings with DI/DI Vand ongoing.

4.3

Roll-out of DSIF strategy to embassies ongoing. Monthly

meetings with MFA investment advisors ongoing. Regular

dialogue with ENS and MST established at central and country

level. Further country level dialogue to be initiated in 2023. MFA

(GDK) to ensure embassy coordination and timely involvement

of DSIF in the formulation process for country strategic

frameworks.

4.4

Partnerships initiated at strategic level (Power Africa/USAID

in place; AfDB UMDF under discussion) and at project level

(NEFCO in Ukraine; DBSA in South Africa)

5.1.

DSIF strategy allows for wider range

5.1

Alternative projects (transformational and innovative in line

of activities.

with DSIF strategy) are currently explored in Indonesia, South

5.2.

Decreasing DSIF’s emphasis on

Africa and India, e.g. in terms of different technologies, untied

leveraging (Danish) commercial

and new loan- and guarantee setup.

capital in favour of working more

5.2

a) Collaboration with other DFI’s currently being explored in

with DFIs

South Africa and Ukraine. b) Strategic partnership with

5.3.

Different types of synergy to be

AfDB/UMDF under consideration.

better outlined in new administrative

5.3

UM-IFU administrative agreement updated

agreement.

4.2

Ongoing

4.3

Done

4.4

Ongoing

5.1

Ongoing

5.2

a) Done /

b) Ongoing

5.3

3Q23

DANIDA SUSTAINABLE INFRASTRUCTURE FINANCE EVALUATION FOLLOW UP PLAN – July 2023

Recommendation regarding

Additionality

6.1.

DSIF should seek to maximise

overall additionality integrated into

the full project cycle.

6.2.

DSIF strategy will outline various

types of additionality

7.1.

Need to assess and communicate

the financial risk of operating in the

given countries. The administrative

review will assess and provide

recommendations.

7.2.

Greater attention during appraisals

to the assumptions underlying

successful implementation and long-

term sustainability

Recommendations regarding Risk

Management

6.1

Additionality assessments and considerations at project level

will be integrated as part of impact screening along the project

cycle (included in IFU’s decision making process: Clearance in

Principle and Binding Commitment documents).

6.2

Additionality types outlined in DSIF strategy (programme

level).

7.1



DSIF has updated the EKF guarantee overview to include

pipeline (steering committee (SC) material). Further

elaborations to be made for SC in 2Q23.



DSIF to develop portfolio allocation targets as part of

implementation of DSIF strategy in order to achieve a

balanced portfolio – in 2023.



Opportunities for trend analysis and risk assessments

through the (incoming) IFU Investment Management System

will be explored (ongoing)

7.2

DSIF and MFA (ELK) to formulate the Theory of Change

framework, and further aspects of the Doing Development

Differently agenda, including results management.

6.1

Ongoing as

part of broader

IFU additionality

policy

6.2

Done

7.1



Done



Ongoing

7.2

Ongoing –

with support from

external

consultant

8.1

2H23.

Recommendations regarding

8.1

Develop a communications strategy

for DSIF

8.1 DSIF communication plan to be developed 1H23.

Communications