ODA Counterpart Fund (Lao Government contribution to ODA projects)

Through cooperation with DPI and each sector department in four provinces including the monitor provinces, and discussion with major donors, PCAP2 has identified the following problems in the current process of applying for the ODA counterpart fund, which is the contribution of the Lao Government to ODA projects.

1. Every year, the amount of requests for the PIP budget greatly exceeds the budget. Therefore, requests for payment of the counterpart fund (CPF), regardless of the merit of requests, also have to be prioritized.
2. Project owner organizations (POs) may miss the opportunity for applying for the CPF because they do not have enough updated information on ODA projects.
3. It is difficult to set priorities between ODA and PIP projects because no comprehensive method has been developed for prioritizing PIP projects including ODA projects.

Here are the concepts of problem solving in the ODA counterpart fund process.

Comprehensive system of prioritizing PIP projects

In Laos, PIP projects funded by ODA are recognized as priority projects, which is reasonable considering the cost effectiveness and large impact of the projects. Meanwhile, ODA does not necessarily cover all the project needs or urgent needs. Sometimes it may not be politically feasible and appropriate to uniformly prioritize ODA. Therefore, to prioritize projects in the total procedure of a PIP budget request, PCAP2 will improve the Comparative Assessment (CompAss) method that has been developed in PCAP1.

User-friendly and simplified ODA data sharing system

MPI has been using a series of information collection formats on a trial basis to prepare the ODA annual report. PCAP2 has simplified these formats and compiled them into the Simplified Project Information Sheet (SPIS) and prepared the workflow that can be used for both annual report preparation and applying for the ODA counterpart fund.

A part of SPIS format

SPIS workflow

Institutional executive capacity

The ODA policy, enacted in March 2009, appoints MPI to organize information and coordinate ODA project implementation. Therefore, SPIS will have the executive power in the legal system as part of the policy.

View to supporting democratic policy implementation

The management tools above are not meant to just simplify activities by filling out the format. They aim to make administrative officers in charge of PIP management understand their projects well, and strengthen their capacity to prioritize projects appropriately. Furthermore, the tools are not meant to show the final project priority but to provide materials for more appropriate policy decisions. These principles support the efforts of the Government of the Lao PDR to implement the Five-Year National Socio-Economic Development Plan in a democratic and effective manner.

The tools have been developed in cooperation with counterpart staff members from the Department of International Cooperation (DIC), the Department of Evaluation (DOE) and the Department of Planning (DOP) of MPI in the following steps: 1) problem analysis and sharing of understanding among stakeholders; 2) supplementary situation survey; 3) structuring of current situation, problem identification; 4) analysis of external situation; 5) development of improved work flow; and 6) development of training modules. In this process, workshops in four provinces, key informant interviews and exchanges of views with major donor organizations were conducted to share understanding, and identify and cross-check problems. The JICA experts have been taking the lead in developing the necessary tools and training modules.