Udenrigsudvalget 2022-23 (2. samling)
URU Alm.del
Offentligt
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DANIDA SUSTAINABLE INFRASTRUCTURE FINANCE EVALUATION FOLLOW UP PLAN – July 2023
Report Recommendation
Key Recommendations:
1.
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.
2.
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 119: Spm. om redegørelse for danskstøttet projekt i Ghana, hvor ulønnede fængselsindsatte er blevet brugt til at nedgrave internetkabler
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DANIDA SUSTAINABLE INFRASTRUCTURE FINANCE EVALUATION FOLLOW UP PLAN – July 2023
3.
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:
4.
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.
5.
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
URU, Alm.del - 2022-23 (2. samling) - Endeligt svar på spørgsmål 119: Spm. om redegørelse for danskstøttet projekt i Ghana, hvor ulønnede fængselsindsatte er blevet brugt til at nedgrave internetkabler
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DANIDA SUSTAINABLE INFRASTRUCTURE FINANCE EVALUATION FOLLOW UP PLAN – July 2023
6.
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
7.
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
Ongoing
7.2
Ongoing –
with support from
external
consultant
8.1
2H23.
8.
Recommendations regarding
8.1
Develop a communications strategy
for DSIF
8.1 DSIF communication plan to be developed 1H23.
Communications