Briefing Note:  Donor Funding 

1. The Government/MoEYS has held extensive discussions on the SAC program scheduled to being in early 1999. The SAC conditionlities are likely to include revised targets for subsectoral and sectoral spending chares and vulumes, appropriate systems for financial reporting and possible targets for salary/non salary spending shares. In summary the key issues are those discussed during the recent high level Government donor consultations.

2. The indicative education budget is projected to rise from Riels 125 billion in 1999 Riels 399 billion in 2003. This will provide scope for looking at alternative scenarios for increased operational spending and performance based pay rises. The SAC framework also provides an opportunity for outcome based program budgeting (i.e. Priority Action Programs), linked to strengthened and timely financial management and reporting system. The aim of MoEYS will be to link the PAPs to sequenced and phased SAC conditionalities.

3. The policy review process and identification of priorities will be critical for filling in the details of the PAPs/SAC framework. The task forces are schedules to begin work programs and briefing on November 17th with early follow up group meetings. The needs of PAP programming reinforces the urgency of an agreed and prioritised/strategic framework.

4. The PAPs will in the first instance focus on quality improvement and capacity building for quality monitoring, especially through increased and protected provincial/institutional operational budgets. These PAPs could provide a framework for beginning output related and tranched sector budget support in order to cover any short falls in meeting 2002/2003 non salary operational expenditure targets.

Proposed Agenda

5. Therefore there are a number of key points of discussion for this donor meeting:

• Briefing/discussion on the PEP for education.

• Discussion of the PAP framework and SAC links.

• Discussion on policy review short and medium term work program.

• Moving forward on the MoEYS/donor partnership arrangements, including:

• Review of draft Statement of Intent.

• Prospects for sector budget support under PAPs.

• Prospects for early technical assistance for financial management/reporting systems.

• Prospects for donor support for medium term policy work program.

Note:

PAP: Priority Action Plan
PEP: Public Expenditure Program
SAC: Structures Adjustment Credit

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