Programme Document Environmental Sector Programme Support …/media/... · 2011-11-25 · LGRP Local Government Reform Programme LGSP Local Government Support Programme (WB) LLG Lower-Level

Government of Tanzania

GoT

Danish Ministry of Foreign Affairs

Danida

Programme Document

Environmental Sector Programme Support

Tanzania

Ref. No. 104.Tanzania.1.MIKA.29 January 2007

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COVER PAGE

Country: Tanzania

Title: Environmental Sector Programme Support

Cooperating Agencies Vice President‟s Office (VPO), Division of Environment

(DoE)

Prime Minister‟s Office, Regional Administration and

Local Government (PMO-RALG)

Ministry of Natural Resources and Tourism (MNRT),

Forestry and Beekeeping Division (FBD)

Duration: Five Years

Starting Date: 1 July 2007

Overall Budget: DKK 180 million

Danida‟s Environment Sector Programme Support (ESPS) from July 2007 to June

2012 has following development objective: Sustainable management of Tanzania‟s

natural resources and environment contributing to growth and income poverty

reduction, to social well being, and to improved governance and accountability. ESPS

will comprise the following components:

1. Environmental Management Act Implementation Support Programme (EISP);

2. Urban Development and Environmental Management Framework (UDEM

Framework);

3. Participatory Forest Management Programme (PFM Programme).

The ESPS will take advantage of the momentum gained with the successful

mainstreaming of environment in the Government of Tanzania‟s (GoT) National

Strategy for Growth and Reduction of Poverty (MKUKUTA, and with the passing of

the Environmental Management Act (EMA). ESPS will balance interventions

between natural resources management and urban environmental management, will

link policy & strategy with implementation in the field, and will consolidate and

sustain achievements made so far.

Danida‟s assistance will contribute substantially to launching and implementing the

EISP and the UDEM Framework and further developing the PFM Programme. ESPS

will include funding for harmonisation and alignment, incl. Danida‟s lead role in the

sector, and for strategic support to Civil Society.

The management of the EMA, UDEM and PFM components is fully integrated into

the GoT institutional structures. The Danida and other Development Partners (DP)

funds for EISP, UDEM and PFM (at a later stage) will be routed through basket fund

arrangements, and management will be informed by Memorandum of Understandings

(MoUs), to be developed in the inception phase.

Signatures

For Danida

For Government of Tanzania

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Table of Contents

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List of Abbreviations

ALAT Association of Local Authorities in Tanzania

CAG Controller and Audit General

CBF Common Basket Fund

CBFM Community Based Forest Management

CBG Capacity Building Grant

CBO Community Based Organisations

CCM Chama Cha Mapinduci

CDG Common Development Grant

CEO Chief Executive Officer

CSO Civil Society Organisation

CPAR Country Procurement Assessment Report

CSRP Civil Service Reform Programme

Danida Danish International Development Assistance

DfID Department for International Development (UK)

DIMS Division of Information Management Systems

DKK Danish Kroner

DLG Division of Local Government

DLS Division of Legal Services

DoE Division of Environment

DP Development Partners

DPG Development Partner Group

DPG-E DP Group-Environment and Natural Resources

DPP Division of Policy and Planning

DSC Division of Sector Coordination

D-by-D Decentralisation by Devolution

EAC East African Community

EC European Commission

EIA Environmental Impact Assessment

EIU Economist Intelligence Unit

EISP Implementation Support Programme

EMA Environmental Management Act

EMIS Environmental Management Information Systems

EPM Environmental Planning and Management

ESPS Environmental Sector Programme Support

EWG Environment Working Group

FAO Food and Agriculture Organisation

FBD The Forestry and Beekeeping Division

FCS Foundation for Civil Society

FY Financial Year

GDP Gross Development Product

GoT Government of Tanzania

GTZ German Technical Cooperation

HBS Household Budget Survey

HIPC Heavily Indebted Poor Countries

HIV/AIDS Human Immune-Deficiency Virus / Acquired Immune-Deficiency

Syndrome

HLG Higher-level Local Governments

HSD Human Settlement Division

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ICDP International Conference for Population Development

IDA International Development Agency

IFMS Integrated Financial Management System

IFP Indicative Planning Figure

ILO International Labour Organisation

IMF International Monetary Fund

IMTC Inter-Ministerial Technical Committee

INGO International Non-Government Organisation

JAS Joint Assistance Strategy

JAST Joint Assistance Strategy, Tanzania

JFM Joint Forest Management

LDS Land Development Services

LFA Logical Framework Approach

LGA Local Government Authority

LGCDG Local Government Capital Development Grant

LGRP Local Government Reform Programme

LGSP Local Government Support Programme (WB)

LLG Lower-Level Government

LoI Letter of Intent

LVEMP Lake Victoria Environmental Management Project

M&E Monitoring & Evaluation

MCDGC Ministry of Community Development, Gender and Children

MDA Ministry, Departments and Agencies

MDGs Millennium Development Goals

MFA Ministry of Foreign Affairs

MIS Management Information System

MLHHSD Ministry of Lands, Housing and Human Settlement Development

MKUKUTA Swahili acronym for: National Strategy for Growth and Reduction of

Poverty

MMS MKUKUTA Monitoring Systems

MNRT Ministry of Natural Resources and Tourism

MoF Ministry of Finance

MoU Memorandum of Understanding

MoW Ministry of Water

MPEE Ministry of Planning, Economy and Empowerment

MSD Mapping and Surveys Division

MTEF Medium Term Expenditure Framework

MTP Medium Term Plan

MTRPS Medium-Term Pay Reform Strategy

NAPA National Adaptation Programme of Action

NEAC National Environmental Advisory Committee

NEAP National Environmental Action Plan

NEMC National Environment Management Council

NEP National Environmental Policy

NFP National Forest Programme

NGO Non Governmental Organisation

Norad The Norwegian Agency for Development Cooperation

NPAC National Programme Advisory committee

NPRS National Poverty Reduction Strategy

NRM Natural Resources Management

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NSGD National Strategy for Gender Development

NSGRP National Strategy for Growth and Reduction of Poverty

NSoR National State of Environment Report

NWWG National Wetlands Working Group

O&M Operation & Maintenance

O&OD Opportunities & Obstacles to Development

OC Other Charges

PBG Plan and Budget Guidelines

PE Personnel Emoluments

PEFAR Public Expenditure and Financial Accountability Review

PER Public Expenditure Review of Environment

PHDR Poverty and Human Development Report

PFM Participatory Forest Management

PFMRP Public Financial Management Programme

PMO-RALG Prime Minister‟s Office, Regional Administrations and Local

Governments

PMS Poverty Management System

PO-PSM President‟s Office, Public Service Management

PPRA Public Procurement Regulatory Authority

PRGF Poverty Reduction and Growth Facility

PRS Poverty Reduction Strategy

PS Permanent Secretary

PSI Policy Support Instrument

PSRP Public Service Reform Programme

RDE Royal Danish Embassy

RS Regional Secretariat

SADC Southern Africa Development Community

SASE Selective Accelerated Salary Enhancement

SBAS Strategic Budget Allocation System

SEA Strategic Environmental Assessment

Sida Swedish International Development Assistance

SIMMORS Sustainable and Integrated Management of the Malagarasi-Muyovosi

Ramsar Site

SoER State of the Environment Report

SP Strategic Plan

SUALDWC Strategy for Urgent Action on Land Degradation and Water

Catchments

SUDP Strategic Urban Development Plan

SWAp Sector Wide Approach

SWM Sustainable Wetlands Management

TA Technical Assistance

TACAIDS Tanzania Commission for AIDS

TAS Technical Assistance Strategy

TASAF Tanzania Social Action Fund

TFCMP Tanzanian Forest Conservation and Management Programme

TFS Tanzania Forest Services

TI Transparency International

ToR Terms of Reference

ToT Training of Trainers

TRA Tanzania Revenue Authority

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TZS Tanzanian Shilling

UCLAS University College of Lands and Architectural Studies, Dar es Salaam

UDEM Urban Development and Environmental Management

UDEMG UDEM-Capital Grant

UDMP Urban Development Management Policy

UEM Urban Environmental Management

UN United Nations

UNDP United Nations Development Programme

UN-Habitat United Nations Habitat

UNIDO United Nations Industrial Development Organisation

USD United States Dollars

VPO Vice President‟s Office

WB World Bank

WD-WU Wildlife Division-Wetlands Unit

WG Working Group

WMA Wildlife Management Areas

WWF Worldwide Fund for Nature

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EXECUTIVE SUMMARY

Background

Danida has provided support to the environment sector since the 1980, which

intensified in the late 1990ies. The main elements of the current support are concerned

with Urban Environmental Management (UEM), Participatory Forest Management

(PFM), and Sustainable Wetlands Management (SWM). A number of reviews of the

current support were conducted during 2005 to feed into the preparation of Danida‟s

continued support to the environment sector. A Concept Note was prepared in January

2006 that outlined the intended scope for a new programme. Following discussions

with the Government of Tanzania (GoT) and in Danida internally it was agreed that

Danida‟s Environment Sector Programme Support (ESPS) from July 2007 to June

2012 should comprise the following components:

Environmental Management Act Implementation Support Programme (EMA-

ISP);

Urban Development and Environmental Management Framework (UDEM

Framework);

Participatory Forest Management Programme (PFM Programme).

The EMA-ISP is a new Component supporting the implementation of the

Environment Management Act, 2004. The UDEM Component replaces the project-

based support to selected urban centres with support that is fed into GoT‟s new

UDEM Framework. The PFM Component is a continuation of the existing component

that has been extended to June 2009 within the current budget frame, but will receive

additional funding for the remaining programme period under the ESPS. It was

decided not to include the support to SWM in the ESPS, but to let it continue on the

basis of the already agreed format. The SWM Component has been extended till June

2011 within the agreed budget frame.

GoT has since the early 1990s embarked on a number of reform programmes. These

gained momentum during the second half of the 1990s and has since year 2000 been

guided by the poverty reduction strategies. The key reforms are: Public Financial

Management Reform; Legal Sector Reform; Public Service Reform; Civil Service

Reform; and Local Government Reform.

It became apparent that local government – a sizable segment of the public service –

needed separate attention. The GoT and its DPs developed the Local Government

Reform Agenda 1996-2000. Subsequently in 1998, GoT published its Policy Paper on

Local Government Reform that was termed „Decentralisation by Devolution‟ (D-by-

D). It has been recognised that D-by-D requires a fundamental change in the way

government carries out its business, that it has implications for all ministries, and

requires harmonisation of national policies and major reforms.

A new Local Government Authority (LGA) formula-based recurrent grant system was

introduced beginning from FY 2004-05 and followed by a new block development

grant system, the Local Government Capital Development Grant (LGCDG). Each

LGA is also allocated a discretionary capacity building grant (CBG). The LGCDG

and CBG are provided on an annual basis. The LGCDG and CBG are only transferred

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to LGAs that fulfil a set of minimum conditions. The yearly LGCDG will be adjusted

based on an assessment of the LGA‟s performance of its functions. The LGCDG

annual allocation will be adjusted based on the performance either upwards or

downwards.

From 2005, the national development agenda is stated in: 1) the Tanzania

Development Vision 2025; and 2) the National Strategy for Growth and Reduction of

Poverty (NSGRP – MKUKUTA, the Swahili acronym). The MKUKUTA aims at

poverty reduction through three broad outcomes, which all link to the environment: 1)

Growth and reduction of income poverty; 2) Improved quality of life and social well

being; and 3) Good governance and accountability. MKUKUTA emphasises

mainstreaming of environment and poverty-environment linkages into all sectors. The

MKUKUTA acknowledges that the link between poverty and environment has

relevance in each of the three outcomes: 1) growth and reduction of poverty mentions

improvement in access and ability to use productive assets such as natural resources;

2) quality of life and social wellbeing refer to environmental protection and

sustainable use of natural resources; and 3) governance and accountability mentions

the transparent and accountable use of natural resources.

In spite of stable GDP growth for several years in Tanzania (averaging about 6.8%

during the last five years), the „basic needs poverty‟ only decreased from 38.6 to

35.7% from 1991/92 to 2000/01. The WB estimates that Tanzania needs a growth rate

at around 6% per year to half poverty by 2015. The aim to halve poverty by 2010 will

require GDP annual growth rates in the range of 8%. However, despite a pick-up in

growth, Tanzania remains a very poor country even by the standards of Sub-Saharan

Africa.

Since 2001, the annual national average population increase is estimated at about 2%

and the urban population in the range of 6%. With these growth rates, the urban

population will increase from around 8.0 million in 2001 to 13.4 million in 2010 and

in 2010 constitute 32% of the total population and the rural population from 26.6

million in 2001 to 27.9 million in 2010 and in 2010 constitute 68% of the total

population.

Although considerable, the contribution from natural resources to Tanzania‟s

economic growth and poverty reduction is largely unacknowledged. It is generally

difficult to predict the growth potential of the natural resources, as the knowledge

about the abundance, value, and current exploitation is limited. Although natural

resources are fundamental to the economy and rural and urban peoples‟ livelihood,

the development potential is often underestimated. This underestimation is partly

caused by missing market mechanisms, including pricing below the market values.

The contributions to Tanzania‟s development from natural resources could be larger

and benefit more people if natural resources were managed in a more sustainable and

equitable manner, building on principles of good governance. Though policies and the

legal framework is largely in place, there is a wide gap between policy and planning,

and action on the ground.

The increasing urbanisation places correspondingly increasing strains on urban-rural

relations: 1) as the supply from the rural to the urban areas of food, energy,

construction materials, and natural resources inputs to manufacturing increase; and 2)

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as pollution levels increase as a consequence of having expanded urban economic and

social activities, which in turn also have negative impacts on the environment outside

the urban areas. The high rate of urbanisation constitutes particular environmental

challenges concerned with problems from industrial pollution and health hazards due

to poor sanitation, stormwater drainage and solid waste management.

With the passing of the Environmental Management Act in 2004 (which became

effective in July 2005) and other legal and policy provisions, there is a good

framework for environmental planning, management, and enforcement. Since the

enactment of EMA in 2005, progress has been slow in establishing environment

sections in sector ministries and there has been limited progress in harmonising

policies, legislation and regulations except for a few MDAs The challenge is to make

use of the environmental management framework in order to attain substantial and

visible effects on the state of environment. This will require substantial capacity

building, institutional development, and development of inter-institutional relations.

The water and energy crisis in early 2006 underscored the need for macro level

environmental management and coordination between Ministries, Departments and

Agencies (MDAs). In response to the crisis, GoT adopted the Strategy for Urgent

Action on Land Degradation and Water Catchments.

The Minster of State for Environment within the Vice President‟s Office (VPO) is

overall responsible for matters relating to environment. The two core institutions for

environmental management in Tanzania under the auspices of VPO are: Department

of Environment (DoE) responsible for environmental policies, coordination, state of

the environment reports and environmental action plans; and the National

Environmental Management Council (NEMC) responsible for enforcement,

compliance, review of environmental impact assessments, and research and studies.

In accordance with EMA‟s stipulations, each sector ministry shall establish an

environmental section, which shall ensure compliance with the environmental

management requirements. Regional Secretariats shall be responsible for coordination

of all advice on environmental management in their respective regions and liaise with

DoE and NEMC on the implementation and enforcement of EMA. Each LGA shall

establish an environment management committee and designate an environmental

management officer. The Prime Minister‟s Office, Regional Administration and Local

Government (PMO-RALG) provides the interface between LGAs and sector

ministries via the Regional Secretariats.

The Environment Working Group (EWG) is the government-led, national level forum

for policy and strategy discussions and coordination of GoT and development partner

(DP) interventions. The EWG acts as the critical link between the environment sector

and national policy, planning and monitoring processes – including representation of

the environment sector in MKUKUTA‟s three cluster groups.

The active development partners for environment form a group referred to as DP

Group-Environment and Natural Resources (DPG-E). Danida currently holds the

chairmanship for the DPG-E. The DPG-E has elaborated an overview on how DPs

distribute their environmental assistance to regions and districts. All regions receive

some assistance and 94 out of 120 districts receive assistance. The overall picture is

that development assistance is very unevenly distributed nationwide among the

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regions/districts. Almost all DPs support the green environmental sub-sector; the blue

sub-sector is primarily supported the multilateral DPs (WB and EC); and UN Habitat

and Denmark largely cover the brown sub-sector.

The civil society‟s roles in environment and natural resources management are

articulated in EMA, in many government policies, and in public sector reforms. The

environment sector civil society in Tanzania is developing, but is in the present

situation relatively weak in terms of resources and capacity. The civil society has a

huge potential role in service delivery and advocacy in the environment sector. The

private sector is primarily involved in construction of investment projects through

competitive bidding, but could also be involved in public-private partnerships

concerned with provision of public services and maintenance of public infrastructure.

GoT has formulated the Joint Assistance Strategy (JAS) for Tanzania which links up

to the Paris Declaration on Aid Effectiveness and the MKUKUTA. GoT will work

towards a more effective division of labour, cooperation and coordination among and

between MDAs, Regions and LGAs. It will do so by taking into account the principle

of subsidiarity.

Objectives

The overall ESPS development objective is:

Sustainable management of Tanzania‟s natural resources and environment

contributing to growth and income poverty reduction, to social wellbeing, and to

improved governance and accountability.

Objectives of the EISP

The development objective of the EISP is:

“State of Environment in Tanzania improved through implementation of EMA,

contributing to growth and income poverty reduction, social well being, and improved

governance and accountability”

The immediate objectives of the EISP are:

1) Coordination of environmental management in Tanzania improved; and

2) Effective implementation of environmental mandates.

Objectives of the UDEM

The development objective of the UDEM is:

Improved living conditions of the urban communities in Tanzania by facilitating

decentralised implementation and monitoring of sustainable urban development and

environmental management in the Local Government Authorities sector.

The immediate objectives of the UDEM are:

1) To provide coordinated financial and technical assistance to relevant LGA sector

institutions at the national and Regional levels to create an enabling atmosphere

for implementation and monitoring of urban development and environmental

management activities at the local levels through a supportive legal and policy

framework;

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2) To provide nationally compatible assistance for the effective management of the

supply and demand sides of capacity building of relevant stakeholders at both

national and urban local government levels to facilitate the implementation of

local level UDEM initiatives;

3) To provide financing to national and local level LGA sector institutions to

operationalise a UDEM supportive national Local Government sector and enable

LGAs to make investments in improved urban development and environmental

management through nationally compatible intergovernmental transfers.

Objectives of the PFM

The development objective is:

Improved and sustainable management of Tanzania‟s diverse forests and woodlands

resources contributing to the maintenance and development of sustainable livelihoods

especially among the poor rural communities.

The immediate objectives are:

1) A national framework for PFM under implementation

2) PFM developed and operational in selected districts in four regions.

Outputs

ESIP

The outputs that will be achieved by the EISP are summarised below:

Focus area Outputs related to immediate objective 1 Environment

Policy and

Planning

1.1.1 EMA associated regulations, standards, guidelines and manuals prepared

and disseminated to implementing institutions

1.1.2 National Environment Advisory Committee established;

1.1.3 National Environment Fund established

Environment

Assessment

1.2.1 EIA and SEA experts registered, EIAs and Strategic Environmental

Assessments (SEAs) reviewed and acted upon; and Environmental audits

conducted

Environment

Reporting,

monitoring,

enforcement

1.3.1 Central Environmental Information System established and State of the

Environment Reports prepared and disseminated;

1.3.2 Environmental inspectors, Analysts, and Reference Analysts

designated/appointed;

1.3.3 Environment Appeals Tribunal established and functioning.

Environment

Information and

awareness

1.4.1 Awareness of EMA and Multilateral Environmental Agreements amongst

all stakeholders increased.

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Focus area Outputs related to immediate objective 2 Environment

Policy and

Planning

2.1.1 EMA mandates specified and internalised within implementing partners;

2.1.2 Environment sections and committees established (reviewed, where they

exists) in Ministries, Departments, Agencies (MDAs) and Loal Government

Authorities (LGAs)

2.1.3 Sector specific and LGA environmental action plans/strategies developed,

implemented and monitored;

2.1.4 Sector legislation, policies, strategies, plans/strategies reviewed and

harmonised, and implemented where necessary.

Environment

Assessment

2.2.1 Sector specific EIA guidelines produced (reviewed if in place) and

implemented for approval;

2.2.2 Compliance inspections conducted;

2.2.3 SEAs of legislation, policies, strategies, plans and programmes conducted

and submitted for approval

Environment

Reporting,

monitoring,

enforcement

2.3.1 Sector and LGA (consolidated report from PMO-RALG) State of

Environment reporting system established; and reports produced and

disseminated;

Environment

Information and

awareness

2.4.1 Information on EMA and sector specific implications disseminated to all

stakeholders in respective sectors;

2.4.2 Information on EMA disseminated to regions, LGAs, wards, mtaas and

kitongojis.

UDEM

The outputs that will be achieved by the UDEM are summarised below:

Component/ sub

component

Outputs

National Level Component

Sub-component - National

Policy and Legal Framework

Output 1: Framework consolidated through – insertion of the

framework in Medium Term Expenditure Frameworks (MTEFs) & pre

studies for the Urban Development Management Policy (UDMP)

Output 2: Existing laws, guidelines and strategies harmonised

Output 3: Urban Development Management Policy (UDMP)

developed

Output 4: sustainable long term responsiveness to LGAs operational



Level Capacity Building

Output 1: Capacity of national level institutions to serve LGAs for

UDEM enhanced

Output 2: Platform to coordinate and enhance all national efforts

strengthened and operational

LGA Level Capacity

Building Component

Output 1: Capacity Building Grant (CBG) for UDEM established and

operational

Output 2: Improved implementation of UDEM activities in LGAs‟

through increased capacity for using the Environmental Planning and

Management (EPM) process

UDEM Funding Framework

Output 1: National level Common Basket Fund (CBF) established and

operational

Output 2: UDEM Capital Development Grant (CDG) established and

operational

Output 3: Utilisation of other sources of funds for UDEM activities

promoted

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PFM

The outputs of the PFM, related to the immediate objectives, are summarised in the

table below:

# Output 1.1 A national framework for PFM implementation developed and institutionalised.

1.2 Applied research and development to facilitate PFM supported.

1.3 National PFM monitoring system developed and dovetailed to Poverty Monitoring Master

Plan, National Forest Programme (NFP) and Local Government Reform Programme (LGRP).

1.4 Manual of PFM „best practices based on simple and practical handbooks developed and

published.

2.1 Local Government Authority human resources capacity and financial ability to support PFM

enhanced.

2.2 Village, sub-village and user group committees promoted and strengthened to support

implementation of PFM.

2.3 PFM plans in selected districts developed and under implementation.

2.4 Private forestry initiatives enhanced.

Cross cutting issues The MDAs and LGAs are responsible for environment and gender mainstreaming, for

initiating efforts to respond to HIV/AIDS, and for good governance in their

institutions. The MDAs and LGAs have committees and staff dealing specifically

with environment, gender and HIV/AIDS interventions, which are incorporated in

their Strategic Plan and MTEF and which are subject to reporting and monitoring. If

the need for corrective measures, e.g. in the case of an EMA activity, arises, the

relevant focal points or sections will resolve what measures should be applied.

Implementation of SUALDWC will be a test of how good governance is as there will

be a need to balance environment requirements with human welfare/rights and

adherence to environmental laws as well as resettlement laws.

Sustainability and replicability issues

The implementation of EMA, UDEM and PFM will take place within existing

government structures and mandates, which will enhance sustainability significantly.

Sustainability within the EMA component will furthermore be promoted by ensuring

that environment sections in MDAs are properly established, staffed, equipped, and

that environmental management functions are well conceived – and not least that they

continue to be well undertaken. There will be considerable scope for replication, as

the EMA implementation will be undertaken in phases and batches. When all MDAs

and LGAs have implemented the initial requirements, there will be a need for

continuing refinements of EMA implementation.

Regarding the local level activities, sustainability will be promoted by facilitating that

investment projects are properly conceived, relevant and well designed. Emphasis will

be placed on LGAs undertaking their own internal appraisal and approval procedures.

Sustainability will, furthermore, be promoted by developing and sustaining LGAs‟

corporate competence in urban planning, development and environmental

management.

Regarding the national level activities within the UDEM component, sustainability

will be enhanced by developing a comprehensive long-term UDP that provides

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effective directions for urbanisation at national and local levels; and integrating

development interventions into GoT‟s planning, budgeting, accounting and reporting

systems.

There will be considerable scope for replication, as more LGA‟s qualify and as the

need for investment in urban LGAs is enormous. Best practice cases will continue to

be documented based on the positive experiences gained that will help inform

procedures and guidelines for new eligible LGAs wanting to access the UDEM grant.

The UDEM Framework should, according to Danida, be seen as a medium term

intervention, addressing the urban environmental challenges, which are not fully

accommodated in the current policy, capacity building, and investment frameworks.

The grants may at a later stage be fully integrated in the LGCDG and LGCBG. When

the policy is in place and institutional mandates for servicing LGAs in this field are

fulfilled, the need for a specific earmarked national level support may dissolve.

Sustainability within the PFM component will be promoted by use of participatory

approaches that will increase the effectiveness of collective action and that respond to

the core interests of the communities in the vicinity of forest areas. Sustainability is

further enhanced by improved regulation from the public sector. Replicability is

enhanced by the emerging sector wide approaches which will allow unimpeded

transfer of good demonstrations throughout the country.

Management arrangements

GoT-DP MoUs regarding EISP, UDEM Framework, and NFP SWAp basket will be

developed, and they will include detailed specifications on management, on planning

and budgeting, on fund transfers, on procurement, on reporting and accounting, and

on auditing. This section is thus giving a preliminary presentation of the

implementation modalities. The table summarises the implementation arrangements,

which are further described in the specific component descriptions.

Implementation Arrangements ESPS components Roles EMA UDEM PFM

Executing &

Coordinating

institution

VPO-DoE & NEMC PMO-RALG FBD, MNRT

Cooperating

Institutions

MDAs (selected) incl.

PMO-RALG

MLHSSD, VPO-NEMC,

LGAs

PMO-RALG, LGAs

Steering

Committee(s)

EWG UDEM Steering

Committee (SC), LGCDG

Steering Committee and

Technical Committee

PFM working group under

SWAp Steering Committee)

Funding

mechanism

Basket Basket Continued component. After

2009 – basket

Funding

channel

Satellite account in

treasury, release based

on EWG approved

work plans and budgets


treasury, release based on

SC approved work plans

and budgets (including for

the grants)

Disbursed to FBD and PMO-

RALG based on request, on

a grant basis. Manual

available

Planning

mechanism

Use of GoT planning

mechanism. Extracted

Use of GoT planning

mechanism. Extracted and

Use of GoT planning


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Roles EMA UDEM PFM

and aggregated work

plans and budgets,

based on respective

institutions‟ related

activities and budgets,

produced by VPO-DoE.

First year allowing

activities outside MTEF

aggregated work plans and

budgets, based on

respective institutions‟

related activities and

budgets, produced by

PMO-RALG

Use of GoT planning

mechanism– integration in

LGA development plans


budgets, based on respective

institutions‟ related activities

and budgets, produced by

FBD.

Use of GoT planning

mechanism at local level as

well - integration in LGA

development plans

Reporting

mechanism

Use of GoT reporting


aggregated physical and

financial report, based

on respective

institutions reports,

produced by VPO-DoE




financial report, based on

respective institutions

reports, produced by PMO-

RALG.

PMO-RALG also extracts

and aggregates LGA

reporting






reports, produced by FBD

Specific mechanism for

reporting from local level to

PFM working group.

TA Procured by respective

institutions using GoT

rules. First 1½ year

short term continous

TA procured by RDE,

from Programme

Management budget

Procured by respective


rules. Danida Technical

Adviser first 2 years

Services procured by FBD

using GoT rules, goods

procured through Crown

Agent, Danida Technical and

Financial Adviser - all until

2009. After 2009 – all

procurement by GoT

Transfer and channelling of funds

The Danida and other DP funds for EISP, UDEM and later on the PFM will be routed

through basket fund arrangements via the Ministry of Finance (MoF) Exchequer

System thus enabling the transfers to be recorded in the Integrated Financial

Management System. The DPs will indicate their funding commitments well in

advance to ensure that budget preparation can take place based on predictable DP

contributions to allow MTEF budget ceilings to be realistically set.

For EISP and UDEM Framework each implementing institution will identify the

relevant activities to be included in their annual plans and budgets in their MTEF. The

executing institution, meaning VPO-DoE and PMO-RALG, will prepare annual

aggregated budgets and work plans, based on the implementing institutions annual

plans and budgets. The aggregated plans and budgets will thus constitute extracts of

the MTEF, and will be submitted to the Steering Committees for endorsement. After

the flow of funds and the decision making, accounting, financial reporting and

auditing mechanisms, there will follow the GoT standards.

The planning and budgeting in the PFM component is already expressed in manuals,

incl. a recently approved manual for district PFM funding, developed by MoF, PMO-

RALG, and FBD, and building upon the existing GoT system.

Budget

The overall budget for the Danida contribution is shown below:

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xvi

2007-08 2008-09 2009-10 2010-11 2011-12 Total

1 EMA Component 8 6.9 6.7 6.7 6.7 35

2 UDEM

Component

20 20 20 20 20 100

3 PFM Component 0 0 6 6 6 18

4 ESPS

Management

2.5 2 1.5 1.5 1.5 9

5 Unallocated Funds 2 4 5 6 1 18

Total 32.5 32.9 39.2 40.2 35.2 180

Assumptions and risks

There are 9 formal assumptions that pertain to the EISP and UDEM components:

The public sector reforms in Tanzania successfully increase the effectiveness

of the civil service.

The capacity of the LGAs is sufficient to fulfil the conditions of the capital

grant, make use of the capacity grant and ensure adequate operation and

maintenance.

Central government institutions are able to focus on their facilitating and

regulatory role and allow LGAs to assume the implementation role.

Development partners provide sufficient funding and channel their funds

through the UDEM framework.

Urban communities will actively participate in the planning and implementing

of the UDEM activities.

Increased commitment, by DoE and NEMC, to implementation of EMA.

Increased commitment by MDAs to implementation of EMA

Increased management capacity in DoE/NEMC to coordinate the

implementation of EMA.

Continuing political support for environmental management.

The major risk factors listed below – these risk factors are considered pivotal, the

main document and the component description give a fuller list:

The public sector is overwhelmed by the number of reforms and is unable to

complete them.

Vested interests work against the public sector reforms e.g. in decentralisation

and the process takes much longer than envisaged.

Political instability at local government level which means that longer term

urbanisation challenges are not addressed.

Presence of more urgent problems and challenges in the MDA and LGAs so

that environment is placed on a lower priority.

PMO-RALG / DoE do not have sufficient capacity to coordinate and manage

the UDEM/EISP.

The EISP and UDEM framework do not attract sufficient donors and donors

are not stable in their cooperation and change focus before allowing results to

be consolidated.

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xvii

The main assumption/ risk associated with the PFM Component is that the transaction

costs of engagement in PFM are high, making more unsustainable forest management

more attractive.

Monitoring

Monitoring of the ESPS will take place at objective, output, and process level and use

existing monitoring systems as shown below:

Level Existing monitoring system

EISP UDEM Objective/ outcome MKUKUTA

Output MTEF – annual and 3 year strategic level for each budget holding entity

Process EWG assessment CDG performance measures

Thus no new monitoring system will be set up for the ESPs and the EMA and UDEM

components, neither by the government nor by donors supporting the EISP.

The outcomes will be monitored using the MKUKUTA indicators and monitoring

systems. The key indicators in MKUKUTA that relate to the EISP are shown in the

table below.

Poverty-environment indicators and relations to the ESPS Cluster/Goal Indicator EMA UDEM PFM

Cluster1/Goal 2* Proportion of enterprises undertaking EIAs

complying with standards.

X X

Cluster1/ Goal 5* % of households whose main income is derived

from harvesting, processing and marketing of

natural resources products.

X

Cluster 1/ Goal 6* % of households in rural and urban areas using

alternative sources of energy to wood fuel

(including charcoal) as their main source of energy

for cooking.

X X

Cluster2/ Goal 3* Proportion of population with access to piped

water as their main drinking water source.

X

Cluster2/ Goal 3* % of households with basic sanitation facilities. X

Cluster2/ Goal 3* % of schools having adequate sanitation facilities. X

Cluster2/ Goal 3* No of reported cholera cases X

Cluster2/ Goal 3* Total area managed by mandated local institution

for the purposes of community based natural

resources management.

X

Cluster3/ Goal 1* % of female small holder households with land

ownership or customary rights.

X X

Cluster 3/ Goal 2* Total value of revenues received from concessions

and licences for mining, forestry, fishing and

wildlife as % of their estimated economic value.

X X

Specific target setting has been done in MKUKUTA, e.g. the target for households

with basic sanitation facilities is 95% by 2010.

Detailed indicators at output and process level are given in the component

descriptions.

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1

Part I: Background and Context

1. INTRODUCTION

Danida has provided support to the environment sector in Tanzania since the 1980s.

The support intensified in the late 1990‟ies. An Environment Programme Document

was prepared for the 2000-03 period to guide the strategic considerations. Projects

were the preferred modality for Danida interventions at the time, but all ongoing

projects will cease during 2007. The support to PFM was structured as a component in

2003 adhering to the programmatic approach. Similarly, the support to Sustainable

Wetlands Management (SWM) was formulated as a component in 2004. The Danish

support to the Sustainable Cities Programme continued as projects for each of the six

selected municipalities. It was decided not to prepare a new Programme Document for

the Danish environmental assistance – replacing the 2000-03 Document.

A number of reviews were concluded during 2005 to feed into the preparation of the

continued support to the environment sector: 1) Participatory Forestry Management

Programme1; 2) Support to Sustainable Cities Programme2; and 3) Sustainable and

Integrated Wetlands Management3. The Government of Tanzania has undertaken a

needs assessment in relation to the Environmental Management Act (EMA, 2004),

which also highlights lessons learned in capacity building in the sector, and points at

ways forward. Finally, the European Commission has recently finalised a sector

review, which also provides useful insights. The following crosscutting experiences

can be extracted:

Past project approach, with partly parallel structures, has not resulted in

sustainability of achievements – although improvements in environment and

living conditions have taken place.

Past projects have been beneficial in piloting new approaches in the sector, but

the challenge is to link this to policy and strategy development and to scale up

and replicate the achievements.

The move from project-based implementation to an implementation modality

through the government system results in delays, due to the limited resources

and capacity of the government.

The support has over-emphasised the role of the line agencies and under-

emphasised the Decentralisation by Devolution (D-by-D) process and thereby

the role of local government authorities.

A Concept Note4 was prepared in January 2006 outlining the intended scope of the

Danida Environment Sector Programme Support (ESPS): 1) support to the

implementation of the Environmental Management Act (EMA; 2) support to Urban

Development and Environmental Management (UDEM); 3) continuation of the

support to PFM; and 4) continuation of the support to SWM. The Danida Programme

Committee responded favourably to the Concept Note in February 2006, however,

one comment being the need to have a more focussed ESPS in light of Tanzania‟s

1 Danida/ Finnida/ WB. Joint Review Report: Participatory Forestry Management Programme,

Tanzania, August 2005. 2 Danida/PEM. Technical Review of Danida Support to Sustainable Cities Programme, June 2005. 3 Danida. Mid-term Review: Report, Sustainable and Integrated Management of the Malagarasi-

Muyovosi Ramsar Site (SIMMORS), March 2005 4 Danida. Concept Note: Tanzania/ Environment SPS 2007-2011, January 2006.

ESPS Tanzania

2

Joint Assistance Strategy, which builds on the Paris Declaration‟s principles of

increasing the effectiveness of aid. As a consequence, it was decided not to include

the support to SWM in the ESPS. The importance and multi-sectoral nature of

wetland management is recognised by the official creation in 2001 of the National

Wetlands Working Group (NWWG) comprising of 30 key wetland stakeholders

primarily at the central level. The support is assisting GoT in establishing a National

Wetlands Strategy, a more comprehensive National Wetland Management Programme

and is piloting wetlands management activities at regional, district, village and site

level. The regional activities are focussed in Iringa and Mbeya Regions and in the

Malagarasi Muyovozi and Lake Natron Ramsar Sites. In recognition of the need to

consolidate the achievements to date it was decided to continue the SWM on the basis

of the already agreed objectives and outputs, as stipulated in the Component

Description. The SWM Component has encountered delays and it has subsequently

been agreed to extend to the Component till June 2011 within the agreed budget

framework.

The Government of Tanzania (GoT) is in the process of developing the EMA

Implementation Support Programme (EISP) into which GoT and development partner

(DP) assistance could be channelled. Similarly, GoT is developing the UDEM

Framework, which constitutes the framework for GoT and DP interventions in

support of urban development. The EISP and the UDEM Framework are intended to

mature in structure and substance during the initial period of implementation. Danida

has provided technical assistance to GoT to facilitate the formulation of the EISP and

the UDEM Framework, which includes national and local level interventions.

Danida‟s support to the EISP and the UDEM Framework will be fully aligned with

the national structures and procedures and will be harmonised with other donors‟

support, which is anticipated to be forthcoming. The support to PFM is a continuation

of the ongoing support. The PFM Component has been extended to June 2009 within

the current budget frame, but will receive additional funding for the remaining

programme period under the ESPS from July 2009.

The present Environment Sector Programme Support (ESPS) Document presents

Danida‟s support to Tanzania‟s environment sector from July 2007 to June 2012, and

will comprise three components as follows:

1. Environmental Management Act Implementation Support Programme;

2. Urban Development and Environmental Management Framework;

3. Participatory Forest Management Programme.

The budget for ESPS is DKK 180 million. The Danida funds will largely be part of

pooled funding arrangements. An inception phase will take place of about one year

for the EISP, while the inception phase for the UDEM framework is already

underway.

The EISP and the UDEM Framework and the lessons learned from the ongoing

assistance form the basis for formulating the Danida ESPS Document, the EMA

Component Document, and the UDEM Component Document. The current PFM

Component Document is considered to remain valid as regards already agreed

objectives and outputs stipulated in the Component Description, and it is therefore not

deemed necessary to update the Document at this point in time. Section 5.3 of the

ESPS Document elaborates on PFM development scenarios by the end of the adjusted

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3

Component period (2009) and by the end of the ESPS (2012). The ESPS Document

and the EMA and UDEM Component Documents have been drafted during the April-

August 2006 period. An appraisal took place in October 2006 which was followed up

by a 2 month period during which the comments were taken into account and the

component descriptions and programme document updated in line with adjustments

that were also being made in the national sector framework at the same time.

The purpose of the Danida documents is to obtain agreement and approval by the

Governments of Tanzania and Denmark on the scope of the Danish assistance to the

environment sector in Tanzania.

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4

2. NATIONAL CONTEXT

2.1 Political and governance context

Political context

The United Republic of Tanzania was formed by the union of Tanganyika and

Zanzibar in 1964. Zanzibar continues to have its own government for internal affairs.

Tanzania embarked on a socialist direction, and the ruling party Chama Cha

Mapinduci (CCM) dominated virtually all aspects of political life. In the early 1990s

Tanzania began to move towards a multiparty system, and in 1991, a presidential

commission published recommendations for the establishment of a multiparty system

and several new political organisations emerged.

Although Tanzania abandoned its socialist policies in the mid-1990s and has held

multiparty elections since 1995, they have been overwhelmingly won by CCM and it

remains the strongest political party in Tanzania. CCM won an overwhelming victory

in the Union presidential and legislative elections in December 2005. CCM‟s

presidential candidate, Jakaya Kikwete, secured just over 80% of the votes and

became Tanzania‟s new president. The party captured 206 out of the 232

parliamentary seats up for election. The smooth electoral process has boosted

Tanzania‟s image as one of Africa‟s best performing countries.

President Kikwete has pushed ahead with the current reform programme and builds

on the progress made under the former president, Benjamin Mkapa. The new

government has reiterated its commitment to market-oriented reforms that

characterised the former government of President Mkapa. Further privatisation and

the increase in the number of special economic zones will be strategies in promoting

manufacturing-led economic growth. The environment sector is influenced by the

political transition in the last two decades and the economic market oriented reforms -

private sector and civil society have been given more space in the environmental

management, while environmental challenges have increased with the growing

economy. President Kikwete has furthermore made environmental management a

priority area for the new government. It was one of his ten core priority issues for the

government, mentioned in his initial speech to the national assembly (31/12 2005),

and this has since been followed up in various actions e.g. the establishment of a

cabinet committee on environment.

Regional integration

Relations between Uganda, Kenya and Tanzania have steadily improved since the

early 1990s. In addition they have increasingly similar economic reforms and have

adopted similar forms of democracy. Consequently, the countries revived the East

African Community (EAC) leading to the establishment of the East African Custom

Union in January 2005. The three countries have also established an EAC Parliament

and an EAC Secretariat in Arusha. Trade relations have been complicated by the fact

that Tanzania withdrew from the Common Market for Eastern and Southern Africa

(Comesa), on the grounds that it felt it was involved in too many trade bodies with

overlapping goals – although Uganda and Kenya remain members. Tanzania – unlike

Kenya and Uganda – is a member of the Southern African Development Community

(SADC), as Tanzania feels that SADC, rather than Comesa, offers better trading

opportunities and a more realistic chance of regional economic integration. In April at

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5

an EAC summit it was decided to speed up the process of negotiating a common

market, and implementation is aimed to start in January 2010. It was also agreed to

push ahead towards the goal of a political federation.

The closer cooperation between Kenya, Uganda and Tanzania is intended to promote

increased production and trade, which will have environmental management

implications. The cooperation will also provide new opportunities to address regional

level environmental problems and harmonise environmental management

interventions, e.g. in the Lake Victoria, where the Lake Victoria Environmental

Management Project (LVEMP) aims at restoring Lake Victoria‟s ecosystem.

Government structure and reform process

Tanzania has two tiers of government: central government sector ministries,

departments and other national agencies (MDAs), and LGAs comprising rural and

urban local governments. The PMO-RALG is the central agency for policy-making

and with regulatory and coordination functions for LGA affairs. The former Regional

Administrations have been transformed to Regional Secretariats, which have an

advisory and facilitating role towards the LGAs and are the intermediary link between

local and central government. The rural LGAs – district councils – lower levels are:

ward, village and kitongoji. Village councils with elected members govern village

affairs. The urban LGAs – city, municipal, and town councils – lower levels are: ward

and mtaa.

GoT has since the early 1990s embarked on a number of reform programmes. These

gained momentum during the second half of the 1990s and has since year 2000 been

guided by the poverty reduction strategies. A Public Service Conference was held in

October 2004 with a view to coordinating the major reforms: Public Service Reform,

Public Financial Management Reform, Legal Sector Reform, and Local Government

Reform. While all the reforms are addressing the public service, some are mainly

addressing administrative procedures, while others deal with core power balances, and

the nature of governance aspects of the reforms therefore varies. As an example,

PMO-RALG stressed at the Conference that „Decentralisation by Devolution‟ (D-by-

D) must be seen as a fundamental change in the way government carries out its

business, that it has implications for all ministries, and requires harmonisation of

national policies and political reforms.

The national development agenda is stated in: 1) the Tanzania Development Vision

2025; and 2) the National Strategy for Growth and Reduction of Poverty (NSGRP –

MKUKUTA, the Swahili acronym). The reform process is adjusted in order to be

consistent with the development agenda key strategies.

The Tanzania Development Vision 2025

The Vision envisages that Tanzania will have the following attributes by year 2025:

High quality livelihood: The development should be people-centred based on

sustainable and shared growth and result in Tanzania being free from abject

poverty;

A strong competitive economy: Emphasis on the need to have an economy

that can effectively cope with development challenges;

Good governance: This entails strengthening a culture of accountability,

rewarding good performance and effectively curbing corruption;

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6

A well educated and learning population: This envisages a nation whose

people are engrained with a developmental mindset and competitive spirit. It is

driven by education and knowledge; and

Peace, stability and unity: Peace, political stability and national unity and

social cohesion are important pillars for realisation of the Vision.

The intent is to phase the Vision‟s long-term development objective into

implementable short and long-term actions through a sequence of Medium Term

Plans (MTPs). The MTPs provide the framework for adjusting policy options, sector

objectives, strategies and targets to the actual economic and social contexts as they

evolve.

The Poverty Reduction Strategy

Tanzania‟s first Poverty Reduction Strategy (PRS) covered the period from 2000 to

2003, but was extended by one year. The scope of the second PRS is broadened from

a previous focus on social sector interventions to balanced interventions in all sectors

realizing the need for broad-based economic growth, social well being and good

governance. The Cabinet and Parliament adopted the MKUKUTA in early February

2005. The MKUKUTA makes linkages with Vision 2025 and is committed to the

Millennium Development Goals (MDGs) as internationally agreed targets for

reducing poverty. Tanzania‟s status regarding MDGs (compared to MKUKUTA

targets) is shown in the table below.

The MKUKUTA aims at poverty reduction through three broad outcomes:

1. Growth and reduction of income poverty;

2. Improved quality of life and social well being;

3. Good governance and accountability.

The MKUKUTA seeks to deepen ownership and inclusion in policy-making

processes by recognising a need to make participation more institutionalised. Strategic

planning and associated budgeting of MKUKUTA‟s interventions will be undertaken

in conjunction with the elaboration of the MTEF. The outcome approach encourages

inter-sector collaboration in devising efficient ways of reaching the targets and

achieving the specified outcomes. GoT will pursue debt sustainability, a

macroeconomic policy framework for low rates of inflation, stable exchange rate, and

a business environment conducive to private sector development and foreign

investments.

MKUKUTA emphasises mainstreaming of environment. The MKUKUTA

acknowledges the link between poverty and environment, builds upon MDG 7, and it

includes relevant targets in each of the three outcomes: 1) growth and reduction of

income poverty has for instance targets on the contribution of natural resources to

growth and poverty reduction; 2) quality of life and social wellbeing includes targets

on environmental protection and pollution control, on environmental services such as

water and sanitation, and vulnerability reduction; and 3) governance and

accountability has targets on equitable access and use of natural resources, general

public participation, and transparent and accountable use of natural resources. Out of

MKUKUTA‟s 108 targets, it is estimated that 15 are directly linked to environmental

issues.

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Table: 2.1: MDG and MKUKUTA Status 1990

Status

(Or closest

available)

2006

Status

(Or closest

available)

2010 MKUKUTA

Targets

2015

MDG

Targets

2010 MKUKUTA

Targets –

at current

trends

Goal 1: Eradicate extreme poverty and hunger (2015 targets = halve 1990 level of income poverty and malnutrition)

Income

% below the national poverty line 39 36 24 Uncertain

% below dollar a day poverty line 61 58 31

Child malnutrition

% of children under 5 underweight 29 22 15

% of children under 5 stunned 43 38 20 No

% of children under 5 wasted 6 3 2 Yes

Goal 2: Achieve universal primary education (2015 target = net enrolment of 100%) Net enrolment in primary schools (%) 51 91 99 100 Met

Goal 3: Promotion of gender equality, empowerment of women (2015 target = equal gender ratio)

Girl/boy ratio for enrolment in primary schools 1.01 0.99 1 1 Met

Girl/boy ratio for enrolment in secondary schools 0.70 0.81 1 1 Yes

Goal 4: Reduce child mortality (2015 target = reduce 1990 child mortality by two thirds)

Under five mortality (per 1000) 141 112 79 47 No

Infant mortality (per 1000) 92 68 50 No

Goal 5: Improve maternal health (2015 target = reduce 1990 maternal mortality by three fourths)

Reduce maternal mortality by three quarters (per

100,000 births)

529 578 265 132 No

Births attended by skilled staff (% of total) 53 46 80 No

Goal 6: Combat HIV/AIDS, malaria and other diseases (2015 target = halt and begin to reverse AIDS, etc.)

HIV/AIDS prevalence in the total population (%) n.a.. 7.0 <7.0

HIV/AIDS prevalence among 15-24 year pregnant

women (5)

n.a. 7.6 5.0 No

Goal 7: Ensure environmental sustainability (2015 target = integrate into government policies, reverse loss of

environmental resources, halve proportion of people without access to safe water and sanitation)

Proportion with access to clean and safe water in

urban areas (%)

92 91 90 90 Met

Proportion with access to clean and safe water in

rural areas (%)

36 47 65 90 No

Proportion of people with access to basic

sanitation in urban areas (%)

98 96 95 Mrt

Proportion of people with access to basic

sanitation in rural areas (%)

91 92 95 Yes

Goal 8: Develop global partnership for development (2015 target = sustainable debt, make benefits available of new

technologies)

** ** ***

Source: JAST, Part II: Draft Joint Country Analysis, June 2006

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Table 2.2: A selection of MKUKUTA targets related to environmental

management

Cluster I: Growth of the economy and reduction of income poverty:

Reduced negative impacts on environment and people‟s livelihoods;

Reduced land degradation and loss of biodiversity;

Increased contribution from wildlife, forestry and fisheries to incomes of rural communities.

Cluster II: Improvement of quality of life and social well being:

Increased rural and urban population with access to clean and safe water

Increased access to improved sewerage and sanitation facilities;

Reduced water related environmental pollution levels and reduction of harmful industrial and

agricultural effluents;

Planned and serviced urban settlements with functioning town planning procedures, and increased

number of people having secure tenure;

Reduced vulnerability to environmental disasters, Natural resources and ecosystems that people

depend upon for production and reproduction conserved, and reduction in land degradation and

loss of biodiversity;

Contribution of solar, wind, and biomass and coal for electricity generation increased, and increase

in the population using alternatives to wood fuels for cooking by 2010.

Cluster III: Governance and accountability:

Ensure representative, inclusive (poor and vulnerable groups) and accountable governance

institutions operating at all levels;

Public resources are allocated, accessible and used in equitable, accountable and transparent

manner.

Source: GoT/VPO. National Strategy for Growth and Poverty Reduction (NSGRP), April 2005

The original Poverty Monitoring System (PMS, 2001-2004) has been subject to a

major revision to become the national MKUKUTA Monitoring System (MMS).

Major differences from the PMS are:

A move from priority sectors output indicator approach to a MKUKUTA

outcome-based indicator approach;

A greater emphasis on economic growth and governance, than social sectors

alone; though further emphasis on vulnerability and social protection issues;

Recognition of cross-sectoral contributions to outcomes, and inter-sectoral

linkages and synergies; and further emphasis on mainstreaming crosscutting

issues;

Continued indicator tracking and integrations of MDGs into the national

indicator set.

The overall national indicator set for MKUKUTA are as far as possible drawn from

sector monitoring and from surveys, such as the Household Budget Survey conducted

by National Bureau of Statistics. The national indicator set is thus a selection of key

indicators and more indicators can be found in the respective sector monitoring and in

surveys. However, gaps in sector ministries monitoring exist, and some ministries do

not have established Management Information Systems (MIS) while others require

considerable upgrading, e.g. the FBD is only now in the process of establishing a

National Forest Programme (NFP) monitoring system.

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9

A special effort has been made, through the Danida supported Poverty Environment

Project (see later) to develop indicators that emphasise poverty-environment links,

which resulted in 10 indicators being included in the MMS. The MMS Master Plan

(MPEE, April 2006) includes in its Annex 7, a number of poverty-environment

indicators (draft) as shown in Table 6.6, which also indicates (subjectively) how the

ESPS three components are linked to these indicators.

Table 2.3: MMS poverty-environment indicators and relations to the ESPS Cluster/Goal Indicator EMA UDEM PFM

Cluster1/Goal 2* Proportion of enterprises undertaking EIAs

complying with standards.

X X

Cluster1/ Goal 5* % of households whose main income is derived

from harvesting, processing and marketing of

natural resources products.

X

Cluster 1/ Goal 6* % of households in rural and urban areas using

alternative sources of energy to wood fuel

(including charcoal) as their main source of energy

for cooking.

X X

Cluster2/ Goal 3* Proportion of population with access to piped

water as their main drinking water source.

X

Cluster2/ Goal 3* % of households with basic sanitation facilities. X

Cluster2/ Goal 3* % of schools having adequate sanitation facilities. X

Cluster2/ Goal 3* No of reported cholera cases X

Cluster2/ Goal 3* Total area managed by mandated local institution

for the purposes of community based natural

resources management.

X

Cluster3/ Goal 1* % of female small holder households with land

ownership or customary rights.

X X

Cluster 3/ Goal 2* Total value of revenues received from concessions

and licences for mining, forestry, fishing and

wildlife as % of their estimated economic value.

X X

Central level governance reforms and processes

In 2004, GoT expressed a strong wish for „one process, one assessment‟ with a view

to reducing the number of diagnostic tools applied, amongst others by the DPs, to

assess the public service broadly. The DPs responded amongst others by integrating a

number of instruments into a Public Expenditure and Financial Accountability

Review (PEFAR) that will be undertaken on a yearly basis. Other responses have

been a more MKUKUTA harmonised, aligned and simplified Budget Support Review

process and Performance Assessment Framework and Public Expenditure Review

system. The preliminary findings of the first PEFAR in October 2005 were that

Tanzania has a sound system of formal rules for financial management and that

extensive training had taken place on the application of financial rules and

regulations. There is, however, an issue with regard to compliance with and

enforcement of the regulatory framework.

The problems of weak compliance are addressed by the Public Financial

Management Reform Programme (PFMRP). GoT launched the PFMRP in 1996. The

first phase of PFMRP ended in June 2004 and is succeeded by the second phase (FY

2004-05 – FY 2008-09). The overall objective of the second phase is to strengthen

budget management, accounting and financial management practices by MDAs and

LGAs. Delays in implementing the PFMRP have occurred – affecting the areas of

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10

budget management, procurement and oversight functions – caused by low

institutional capacity and an overstretched management.

The Legal Sector Reform Programme has been underway for some time, since 1993.

In 1996, a task force presented a report, which pointed to the great need for reforms

within the judicial area. A medium-term strategy was presented in 1999, but had many

weaknesses. During the revision of the strategy, it became apparent that a reform of

the entire legal sector was necessary. In March 2005, the Cabinet approved the

medium-term plan for FY 2005-06 to FY 2007-08. The Reform aims at fostering

social justice, enhancement of human rights, equality and rule of law through

improved access to legal services and increase of the legal institutions‟ capacity.

The Public Service Reform Programme (PSRP) is gradually introducing a new

management culture and institutionalisation of an incentive structure in the public

administration. The PSRP was launched in 2000. It builds on the structural and

institutional changes established during the 1993-1999 Civil Service Reform

Programme, which focussed on redefining the role of the state and downsizing the

public sector to control public expenditures – especially the wage bill. The PSRP‟s

objective is to improve the delivery of public services by creating a more efficient and

effective public service that is responsive to citizens‟ needs. As a result, planning,

monitoring and evaluation are sought to be improved. This reform has supported the

transformation of a number of ministerial departments into semi-autonomous

institutions in accordance with the Executive Agency Act.

When the GoT set out to reform its public service in the early 1990s it soon became

apparent that local government – a sizable segment of the public service – needed

separate attention. The GoT and its DPs developed the Local Government Reform

Agenda 1996-2000. Subsequently in 1998, GoT published its Policy Paper on Local

Government Reform, which had four main dimensions:

Political decentralisation, with devolution of powers to locally elected

councils;

Financial decentralisation, based on a combination of discretionary powers of

LGAs to levy taxes and to pass their own budgets together with the obligation

of central government to provide adequate and equitable grants to attain

national standards of service delivery;

Administrative decentralisation, involving a de-linking of local authority staff

from the respective line ministries, making them accountable to the LGAs.

Changed central government – local government relations, whereby the role

of central government and line ministries is changed from a controlling role to

that of policy making, regulatory and monitoring functions.

The LGRP was conceived in 1997. A first two-year phase implementation began in

2000, and was followed by the Medium Term Plan and Budget, July 2002 to June

2005. A second Mid Term Plan and budget commenced in July 2005. An external

review conducted in October 2004 pointed to some positive results: i) the fiscal

decentralisation and the public financial systems at the local level were strengthened

as a result of the introduction of the formula-based block grant system and the

LGCDG; ii) the Public Service Act was in the process of being amended with a view

to vesting powers in the LGAs to make decisions as regard hiring and firing of LGA

staff; and iii) the process of harmonisation of existing legislation with the policy of

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decentralisation has begun. The review also highlighted a series of challenges that the

LGRP are facing, including limited high-level political ownership of, and engagement

in, the reform process. Local government reform efforts continue to be delayed or

disrupted by continuing central controls. Another major challenge is to engage the

sectors in merging or harmonising their LGA based programmes with the recurrent

block grants and/or the LGCDG system. Harmonisation of the Tanzania Social Action

Fund (TASAF) II5 with LGCDG transfer system remains a challenge.

In the period following the review, the LGRP team engaged in developing new

strategies to address the issues raised during the review process, which are

incorporated in the LGRP Medium Term Plan and Budget, July 2005 – June 2008.

Emphasis will be made on: i) progressing with D-by-D (Decentralisation by

Devolution) at the national level and embedding it across government; and ii) the

fiscal empowerment of LGAs, amongst others with the further implementation of the

LGCDG; iii) finalising the restructuring of councils and the Public Service Act

regulation; iv) Governance and legal harmonisation. The MTP is envisaged to

constitute a phase out of the reform secretariat and a full integration in PMO-RALG.

The Medium-Term Pay Reform Strategy (MTPRS) introduced a Selective Accelerated

Salary Enhancement (SASE) scheme in 1999. SASE was intended to be a temporary

measure to bolster the pay of key professional and managerial staff, the ultimate goal

being pay reform across all public services. In FY 2004-05 only four out of eleven

targeted MDAs were included in the scheme. About 9,000 civil servants were

expected to be part of the scheme (3-4% of the public employees), but only 1,650

benefited from the scheme. Cabinet took a decision in 2004 not to rollout the scheme

to other MDAs. The current situation with a SASE scheme of limited reach and with

no identified alternatives for other MDAs poses a critical problem. In response to this

challenge, the Government has in the national budget for 2006-07 introduced a Wage

Bill with higher salaries, but also lower allowances. This is supposed to provide a

more permanent solution to the problem.

2.2 The macroeconomic context

Economic policy

The commitment to reform – in particular a strong commitment to fiscal discipline –

and the high level of donor support means that the country has now seen a prolonged

period of macroeconomic stability. Inflation has fallen considerably and real Gross

Development Product (GDP) growth has picked up substantially, however, inflation

rose sharply in early 2006. From November 2001 Tanzania benefited from the

International Monetary Fund (IMF) - World Bank‟s (WB‟s) Heavily Indebted Pour

Countries (HIPC) debt-relief initiative and has since benefited from substantial debt

write-offs, including the Multilateral Debt Relief Initiative (G8) of gradual debt relief.

Tanzania‟s total external debt at end December 2005 was about 65% of GDP.

The main problem for the government has been to translate the macroeconomic

stability into improvement of the welfare of ordinary Tanzanians. The challenge for

the government in the coming years will be to push ahead with the more difficult

5 Tanzania Social Action Fund (TASAF) is a national initiative that makes funds available to village

governments for use around a series of investment packages defined by sector ministries to ensure

conformity with national policy and law.

ESPS Tanzania

12

structural and institutional reforms required to develop infrastructure, boost the

performance of key economic sectors (agriculture, forestry, wildlife, fishing, tourism,

manufacturing and mining) and reduce corruption, while also encouraging the

development of the private sector. The scale of the challenge has been made clear by

problems experienced in attracting sound private sector investments and by

difficulties that have occurred when the government has tried to encourage greater

private sector involvement in energy, telecommunications, water and transport.

Another main challenge for the government will be to increase domestic revenue,

which totalled around 14% of GDP in 2004/05. In particular the aim will be to widen

the tax base, improve administration and reduce taxes, which are burdening business.

In this regard, there will be substantial potential to increase revenues from extraction

and use of natural resources6.

The national Medium Term Budget Plans and Guidelines for FY 2006-07 to 2008-09

have been outlined and debated in the Parliament. The broad outline is shown in Table

2.4

Table 2.4: Medium Term Budget Plans (TZS millions) 2006-07

a 2007-08

a 2008-09

a

Domestic revenue 2,356,097 2,673,861 3,074,941

Programme loans and grants 693,012 758,049 804,549

Project loans and grants 749,998 800,578 859,726

Basket support loans 105,651 59,289 60,131

Basket support grants 175,025 126,609 109,126

Debt relief total 401,860 114,780 95,000

Borrowing 163,478 231,093 228,239

Privatisation funds 5,000 2,000 N/a

Total revenues 4,650,120 4,766,253 5,231,713

Recurrent expenditure 3,012,648 3,342372 3,701,152

Development expenditure 1,637,471 1,423,881 1,530,561

Total expenditures 4,650,120 4,766,253 5,231,713

Source: Ministry of Finance

Economic performance

Real GDP growth averaged 4.2% between 1996 and 2000, and picked up steadily to

6.2% in 2001 and has since remained close to 7% and reaching 6.7% in 2004. Good

weather, high commodity prices and strong growth in services are estimated to

contribute to a rise in GDP growth to 6.8% in 2005. Key annual economic indicators

are shown in Table 2.5 for the 2001-2005 period.

Table 2.5: Tanzanian annual economic indicators 2001

a 2002

a 2003

a 2004

b 2005

b

GDP at market prices (TZS billion) 8,274.1 9,445.9 10,692.4 11,394.1 12,693.4

GDP (USD billion) 9.4 9.8 10.3 10.5 11.2

Real GDP growth (%) 6.2 7.2 7.1 6.7 6.8

Consumer price inflation (average %) 5.1 1.0 3.5 4.1 a 4.3

a

Population 34.6 35.2 35.9 36.7 37.4

Export of good fob (USD million) 811.7 911.6 1,156.6 1,278.1 a 1,553.3

6 Fisheries revenues have for instance increased 50% from 2001 to 2004. Only 20% of the fisheries

revenue derives from marine fisheries (80% from inland, most notably Lake Victoria), where a 1-year

license of app. 17,000.00 US$ is estimated to amount to the same as the value of a days‟ catch.

ESPS Tanzania

13

2001a 2002

a 2003

a 2004

b 2005

b

Import of goods fob (USD million) 1,631.4 1,526.5 1,980.4 2,184.1 a 2,427.8

Current account balance (USD million) -456.6 -216.9 -393.4 -437.1 a -557.7

Foreign exchange reserves excl gold (USD) 1,156.6 1,528.8 2,038.4 2,295.7 a 2,048.8

a

Total external debt (USD billion) 6.8 7.3 7.5 7.9 8.2

Debt-service ratio paid (%) 9.7 b 6.6

b 4.7

b 6.6 6.0

Exchange rate (average) TZS: USD 876.4 966.6 1,038.4 1,089.3 a 1,128.9

a

Note: a actual,

b EIU estimate

Source: Economist Intelligence Unit. Country Report June 2006

In spite of stable GDP growth for several years in Tanzania (averaging about 6.8%

during the last five years), the „basic needs poverty‟ only decreased from 38.6 to

35.7% from 1991/92 to 2000/017. The target of the MKUKUTA is a reduction to 24%

by 2010. Recent analysis by the WB has combined Household Budget Survey (HBS,

2001-02) data with annual GDP data, which indicates that the trend in poverty

reduction between the two surveys was sluggish in the first half of the 1990s – with

declining income per capita up to 1994. Since then growth rates have been strong with

moderately rising average income resulting in a fall of poverty that is continuing at

present time.

The WB estimates that Tanzania needs a growth rate at around 6% per year to half

poverty by 20158, while it will require a growth in the range of 8%, to halve poverty

by 2010. However, despite a pick-up in growth, Tanzania remains a very poor country

even by the standards of Sub-Saharan Africa. Real GDP per head (at 1992 prices) was

TZS 50,431 in 1992, and fell to TZS 48,650 in 1994 before rising to TZS 59,459 in

2004. The slow growth in GDP per head is the result of a rapidly growing population.

The GDP per capita was about USD 300 in 2005.

The year-on-year inflation rate reached 6.9% in April 2006 being the highest rate

since January 2000. The sharp rise has been driven by the food price inflation, which

rose to 11.2% in April. The other main factors driving up inflation in the first four

months have been fuel, power, water, and transportation. Inflation is expected to

moderate in the second half of the year, as the rise in food prices will slow down

substantially as the new harvest reaches the market.

Drought in the north of the country in early 2006 has hit agricultural production, while

the competition for, and thereby lack of water, has lead to large falls in the generation

of hydropower. This negative impact of the water problem has affected both

manufacturing and small scale business and households significantly. As a result of

the combined effect of the drought and the water crisis, the forecast for real GDP

growth is 5.8-6% in 2006. There are no sufficient management mechanisms in place,

which effectively address the increased competition for water resources for irrigation,

hydropower, livestock herding, domestic water supply etc. and which could avoid the

negative impacts of periodic droughts, e.g. drop in electricity supply which in turn

affects manufacturing outputs. The environmental degradation in terms of

deforestation and other conversions of eco-systems are also acting as negative

contributors to the serious situation. Assuming normal rainfall, recovery in agriculture

and manufacturing could push real GDP growth up to around 6.5% in 2007. However,

7 The source for income poverty data is the Household Budget Survey (HBS). Surveys were conducted

in 1992 and 2001. The next survey is planned for 2006-07. 8 DP Poverty Monitoring Group: Poverty Brief – Tanzania, April 2006.

ESPS Tanzania

14

for Tanzania to achieve the consistently higher growth rates needed to really reduce

poverty, it will have to push ahead and address the structural constraints to growth,

notably by diversification of the economy, implementing agriculture sector reforms,

improving utilisation and management of natural resources, improving infrastructure,

reducing government bureaucracy and improving governance.

As can be assessed from the sectors‟ contribution to GDP (see Table 2.6) it is quite

apparent that the Tanzanian economy is natural resources based, and sectors, such as

forestry, fishing, tourism, mining, energy, are important to mention in this respect.

Other evidence of the importance is presented in the box below. Moreover, the

sensitivity to the availability of natural resources has been experienced in recent years,

and natural resources management thus needs to be given a very high attention.

Table 2.6: Gross domestic product by sector – mainland (% of total) 2001 2001 2002 2003 2004

Agriculture, forestry and fishing 45.0 44.7 44.7 45.0 46.2

Mining and quarrying 1.5 1.6 1.8 1.9 2.5

Manufacturing 7.5 7.4 7.3 7.2 7.0

Electricity and water 1.7 1.6 1.7 1.6 1.6

Construction 5.1 5.3 5.4 5.6 5.7

Trade and tourism 12.3 12.2 11.9 11.8 11.7

Transport and communications 5.4 5.4 4.7 4.6 4.5

Financial and business services 13.7 14.1 14.3 14.3 13.7

Public administration 8.0 7.8 7.6 7.2 9.3

Imputed bank service charges -2.3 -2.1 -1.9 -1.9 -2.1

GDP at current factor cost 100.0 100.0 100.0 100.0 100.0

Source: Planning Commission, Economic Survey 2004

ESPS Tanzania

15

Box 2.1: Economic importance of natural resources sectors:

Forests provide:

Employment to about 1 million people officially, and 5-10 times more unofficially and part

time

10-15 % share of Tanzania‟s registered export earnings

2-3% of GDP for officially recorded forest products

95% of Tanzania‟s energy supply through fuel woods

App. 75% for construction materials

100 / of indigenous medicinal products

Potential for tourism, the pharmaceutical industry and carbon sequestion (carbon value

estimated between 664 – 1,500 US$, depending on source of information)

Wildlife provide:

Annual hunting incomes to the Government estimated at 30 million US$

The leasing companies generate app. 9 million US$ per year

Annual illegal wildlife hunting (meat) value is estimated at 50 million US$

Well over 2/3 of the Tanzanian population eat wild meat, and for up 95% of the rural

population it is the most important animal protein source

In the 90‟ies more than 1,68 million birds, 521,000 reptiles, and 148,000 amphibians and

12,000 mammals were exported

Tourism revenue earnings have grown on an average 30% annually, among others due to the

attraction of wildlife.

Fisheries provide:

Exports totalled 130 million US$ in 2003, corresponding to more than 10 % of total exports

The export value of Nile Perch totalled 100 million US$ in 2003

The number of artisanal fishermen has roughly doubled since 1995, and reached close to

120,000 in 2003

The number of foreign vessels in the marine fisheries has increased from 10 in 1998 to 170 in

2004.

9,5 billion TZS was collected in revenue in 2003-4

Wetlands provide:

Significant national income evident in the importance of hydropower in the country‟s energy

production

Source: World Bank, Study on Growth and Environment Links for Preparation of Country Economic

Memorandum, 2005

2.3 The Socio-economic Context and cross-cutting issues

Population

Tanzania‟s total population in 2001 was 34.6 million of which about 1 million live on

Zanzibar. The population has grown with 2.9% per year since the previous census that

was held in 1988. Population growth rates vary dramatically across the country with

the regions with largest urban concentration growing the fastest. Since 2001, the

annual national average population increase is estimated at about 2% and the urban

population in the range of 6%9. The rapid urban increase is due to rural-urban

9 The average national population growth from 1948 to 2002 was 2.81%. The annual average urban

growth rate for the urban population was 7.22% and the rural 1.02% during the same period (source

JAST, Part II: Joint Country Analysis, June 2006). Based on updated population estimates, it appears

ESPS Tanzania

16

migration. Rural migration to urban centres is usually caused by low employment

absorption capacity in the agricultural sector and lack of non-agricultural employment

opportunities. The pull factor is the perception of the employment, housing and

income opportunities in the urban areas. The urban population is expected to increase

from around 8.0 million in 2001 to 13.4 million in 2010 and in 2010 expected to

constitute 32% of the total population. The rural population will increase from 26.6

million in 2001 to 27.9 million in 2010 and in 2010 constitute 68% of the total

population.

Table 2.7: Population figure and projections 2001 2005 2010

Pop

million

% of

Total

Pop

million

% of

Total

%

Growth

Pop

million

% of

Total

%

Growth

Rural 26.6 76.9 27.4 73 3 27.9 68 2

Urban 8.0 23.1 10.0 27 25 13.4 32 34

Total 34.6 100 37.4 8 - 41.3 - 10

Note: The urban population figures must be treated with caution, as recent censuses have revised urban

boundaries.

Source: Danida ESPS formulation team projections

The increasing urbanisation places correspondingly increasing strains on urban-rural

relations: 1) as the supply from the rural to the urban areas of food, energy,

construction materials, and natural resources inputs to manufacturing increase; and 2)

as pollution levels increase as a consequence of having expanded urban economic and

social activities, which in turn also have negative impacts on the environment outside

the urban areas. The high rate of urbanisation creates environmentally related

problems, due to lack of service provision with regard to sanitation, stormwater

drainage and solid waste management – in addition to the challenges of providing

housing, education, healthcare, work places, etc. and associated infrastructure. It

should also be noted that urban areas provide for rural areas in terms of markets,

transportation hubs, higher level education and health facilities etc.

Despite Tanzania having relatively low levels of inequality compared with other

African countries, there are still significant differences between poverty in different

parts of the country. Analyses combining census and HBS data have produced poverty

estimates at district level for the first time. Poverty rates in districts vary from below

20% to above 50%. Poverty levels are generally lower in urban areas compared to

rural areas, however it is only Dar es Salaam that has experienced a significant

reduction in poverty – down from 28% in 1992 to 18% in 2001.

However, inequalities in urban areas are significantly higher than in rural areas, and

GoT Poverty and Human Development Reports have repeatedly pointed at the context

of poverty in urban areas and at the specific poor and vulnerable groups in the urban

areas, and stated that the urban population exceeds the capacity of urban

infrastructure. The HBS 200/01 shows high level of overcrowding in urban areas,

especially Dar es Salaam, and increase in urban dwellers without tenure, and decrease

or stagnation in service provision, such as water supply, in urban centres.

that the current annual average growth rate is about 2% per year. The average annual urban growth rate

has been guesstimated at 6%.

ESPS Tanzania

17

The HBS indicates that the percentage of adults, whose primary activity is agriculture

or fishing has declined in the last decade from 73% in 1991-92 to 63% in 2001-02.

According to the 2000-01 Integrated Labour Force survey, the active labour force was

17.8 million. With the current rate of growth, this would indicate that 0.7 million

people enter the labour market each year. The HBS also indicated that there were 2.3

million unemployed persons in the country, the majority living in urban areas, notably

in Dar es Salaam, which again confirms the impression of urban inequalities.

Gender

Tanzania operates under a dual legal system consisting of the 1977 Constitution‟s

legal provisions (which stipulates that all people are protected against discrimination

and are equal before the law) and the traditional customary laws, which for example

often deny women their right to access and control resources after the death of their

legitimate husbands. The Land Act of 1999 and Village Land Act of 1999 provide for

complete gender equality in ownership of, and control over land, but these Acts are

not sufficiently enforced.

Women are still inadequately represented in the decision-making processes and public

employment at all levels, despite affirmative action taken by GoT over the past years.

Attitudes still exist at the household level that men are automatic heads and

breadwinners. Women face problems in their struggle for economic and social

prosperity – caused by lack of skills, inadequate access to capital, heavier domestic

workload, and traditional perception of women‟s roles. Despite equal access to

primary education among boys and girls, more young men get access to secondary

and tertiary education.

Gender equality and the empowerment of women are seen as key development goals

in both Vision 2025 and MKUKUTA. The Ministry of Community Development,

Gender and Children (MCDGC) has the overall responsibility for mainstreaming of

gender into MDAs and LGAs. The MCDGC is supported by the United Nations

Development Programme (UNDP) led Joint Gender Macro Policy Group with

representatives from central ministries and development partners. The group has

recently developed a five-year gender strategy focusing on MDGs and on the norm

setting goals from the International Conference for Population Development

(ICPD+10).

The National Strategy for Gender Development (NSGD, 2005) identifies gender

mainstreaming into all sector legislation, policies, plans, and procedures as a means of

promoting gender equality – including areas concerned with environmental

management. Each MDA and LGA are supposed to appoint „gender focal points‟ and

in some cases teams. Initially a few key ministries have been prioritised for capacity

building support by MCDGC: Health, Education, Planning, Agriculture, and Finance.

The gender focal points‟ roles are among others to: i) ensure gender consideration in

policies, strategies, plans and programmes and budgets of the concerned MDA or

LGA; ii) coordinate and monitor issues that will enable gender equity and equality in

the society; iii) ensure that administrative and management frameworks and

employment procedures in MDAs and LGAs are gender sensitive; iv) enable

collection, dissemination and storage of gender disaggregated data and information;

ESPS Tanzania

18

and v) coordinate and assess priority gender issues in all areas within the MDA or

LGA.

Capacity building is the responsibility of MCDGC, which trains the gender focal

points and assists with mainstreaming guidelines for specific sectors. These guidelines

will have some common features, but also sector specific aspects based on

international experiences and norm setting.

Although good progress has been reached in many gender interventions, overall

coordination and monitoring from central level remains weak.

In the National Strategy for Gender Development, the responsibility for preparing the

gender guidelines for environmental management is assigned to VPO, with support

from MCDGC and PMO-RALG. MCMDGC seems to have a good understanding of

some of the gender issues in the environment sector, e.g. access and control over

resources of land, energy etc. VPO-DoE will, as part of the EMA implementation,

also prepare guidelines for mainstreaming gender into the environment sector. The

MNRThas also a gender focal point. Finally, some of the poverty-environment

indicators in the MMS are gender disaggregated and/or specifically focused on gender

aspects, e.g. % of female small holder households with land ownership or customary

rights.

HIV/AIDS

HIV/AIDS is considered a national disaster by the government of Tanzania and has

been made a priority area in the NSGPR to be tackled through a multi sector approach

in a partnership between the public sector, the private sector, civil society, and donors.

Table 2.8: HIV/ADS statistics – estimates end of 2003 Adult population with HIV/AIDS (15-49 years) 1,500,000

Adult infection rate (%) 8.8

Estimated death due AIDS in 2003 160,000

Source: UN Programme on HIV/AIDS

GoT has plans to provide anti-retroviral drugs to 500,000 by the end of 2008. The

estimated 423,000 mothers with HIV/AIDS will be the group most heavily targeted to

receive the drugs. The plan is also to have testing facilities throughout the country.

The cost will be met by GoT, international donors, as well as the private sector. The

president‟s goal is to halt the increase in prevalence of the disease before 2010.

GoT adopted a National Policy on HIV/AIDS in November 2001. The overall goal of

this Policy is to provide for a framework for leadership and coordination of the

national multi-sectoral response to the HIV/AIDS. The “National Multi-Sectoral

Framework on HIV/AIDS” for the 2003-07 period was subsequently prepared as a

follow-up on the Policy. The Framework outlines nine goals and targets to be attained

by 2007. The Tanzania Commission for AIDS (TACAIDS) coordinates, monitors and

evaluates the progress on implementing the Framework.

The policy and framework includes the formulation, by all sectors, of appropriate

interventions, which will be effective in preventing transmission of HIV/AIDS and

other sexually transmitted infections, protecting and supporting vulnerable groups

(cure), and mitigating the social and economic impacts of HIV/AIDS – relevant to

ESPS Tanzania

19

their sector‟s core mandate. LGAs are also supposed to formulate plans cutting across

all departments in the councils. Both types of institutions should appoint HIV/AIDS

focal points. The plans and intervention should both target the staff of these respective

government institutions, and the “external” activities and target group of the MDA or

LGA. In the Environment sector opportunities for activities are seen in relation to

extension work, National Environment Day etc., according to TACAIDS. .

The annual plans for the respective institutions are often done in cooperation with

TACAIDS, and are often given a separate budget in MTEF, and those budgets are

increasing. A national Monitoring and Evaluation framework is under development,

as only geographical and thematic reviews have been conducted so far.

Good governance

The Tanzanian Constitution provides the basic provisions on civil and political human

rights. The human rights situation in Tanzania has generally improved since the mid

1990s, but the adherence to human rights commitments has not been as effective as

desired. Shortcomings include corruption and inefficiency within the police and the

judiciary, and lack of respect, freedom of expression and assembly. The establishment

of the Commission for Human Rights and Good Governance in 2000 was an

important step in addressing this situation. Civil society, media and the Parliament are

increasingly questioning the government on human rights issues. Tanzania has ratified

various core international and regional human rights instruments, but is still to ratify

some. MKUKUTA includes rights of the poor and vulnerable groups as a focal area.

Respect for human rights, the rule of law, democratic principles and the independence

of the judiciary are essential aspects of MKUKUTA‟s Cluster III, Governance and

Accountability.

GoT pursues good governance in two parallel sets of action: 1) strengthening of the

public administration, i.a. through the earlier mentioned reforms aimed at increased

transparency and accountability; and 2) implementation of anti-corruption measures.

During the latest joint annual budget support review in October 2005, progress was

assessed to be overall satisfactory. However, main issues of concern were in the

governance area, including the weak domestic accountability processes, e.g. the

National Audit Office‟s audit reports are not of a good quality and are submitted late

to Parliament; and the Public Accounts Committee‟s reports on audits are tabled, but

not debated in Parliament, and their recommendations are not followed up.

According to the Controller and Auditor General (CAG), corruption in government

functions is most prevalent in public procurement, revenue collection, and financial

management – in that order. The WB estimated in their latest Country Procurement

Assessment Report (CPAR, 2003) that about 20% of the GoT expenditure is lost

through corruption. A new Public Procurement Act became effective in May 2005 and

has resulted in the decentralisation of procurement e.g. from central tender boards to

MDA tender boards and LGA. The new Act also initiated the establishment of the

Public Procurement Regulatory Authority (PPRA) to regulate and monitor

procurement activities, which are seen as an important step in mitigating fiduciary

risks.

ESPS Tanzania

20

Tanzania launched the National Anti-Corruption Strategy and Action Plan in 1999.

Corruption in Tanzania is rated about average for the region10. Tanzania has seen an

improvement in corruption since 1996. It is one of the top-rated low-income countries

in WB‟s “Country Policy and Institutional Assessment” and has one of the best

ratings of all HIPC countries in the WB-IMF poverty expenditure tracking

assessment. Tanzania‟s rating by Transparency International has improved over the

years, the Transparency International (TI) Perception Index rising from 1.9 in 1998 to

2.9 in 2005. While the reforms have closed several avenues to corruption, there have

been few convictions on corruption. The GoT survey on corruption in 2004 indicated

that Tanzanians felt that corruption is increasing. An anti-corruption strategy for

2006-11, currently under preparation, will attempt to attack root causes in a

systematic way.

A government programme for implementing a Strategy for Urgent Action on Land

Degradation and Water Catchments (SUALDWC) has recently been launched with a

significant budget for the financial year 2006/7 and possibly longer. It carries strong

support at the ministerial and cabinet level and there are large expectations that it will

slow down environmental degradation in threatened catchments. Implementation of

SUALDWC will be a test of how good governance is as there will be a need to

balance environment requirements with respect for human rights and welfare and

adherence to environmental laws as well as resettlement laws and other laws

governing rights of citizens.

Environment

All economic and social activities have environmental implications – although to

varying degrees. Environmental concerns and management constitute an important

element in all public and private planning of new activities and management of

ongoing activities. A recent assessment revealed that environmental awareness and

capacity in Tanzania are generally low. Legal provisions are in place and it is thus a

matter of integrating environmental interventions as a crosscutting issue in all private

and public development initiatives and mainstreaming of environmental concerns in

all public and private economic and social functions. Chapter 3 will, in greater detail,

elaborate on legal provisions and the opportunities they provide.

2.4 The Public Planning and Financial Management System

The current strategic planning and budgeting cycle for MDAs, Regions and LGAs

The Tanzanian planning and budgeting process for MDAs and LGAs ideally contain

seven steps11 within an annual planning calendar as shown in Table 2.6:

Situation Analysis, which identifies the main issues and problems that need to

be addressed;

Strategic Plans chart an institution‟s broad direction forward. The Strategic

Plans (SP) are prepared in three-year cycles. The SP focuses on the long-term

perspective and sets out priorities and objectives;

Budgeting involves a projection of revenues and the costing of the SP and of

personnel;

10

UN Economic Commission for Africa 11

GoT. Working document: Medium Term Strategic Planning and Budgeting Manual, November 2005.

ESPS Tanzania

21

Action Planning: Institutions schedule their activities for the up-coming year

and prepare detailed plans, e.g. disbursement schedules/cash flows, detailed

departmental plans, procurement and training plans, and individual

performance agreements;

Implementation: Financial control and monitoring take place through GoT‟s

Integrated Financial Management System (IFMS);

Monitoring and Evaluation: Institutions track the SP progress – focussing on

activity completion, level and quality of services provided, and fulfilment of

objectives.

Reporting: Results are communicated to management for endorsement.

Table 2.9: GoT Annual Planning Calendar Year n Year n + 1

J F M A M J J A S O N D J F M A M J

Budgeting

Preparation of Budget Guidelines x x

Budget Guidelines announced x

Budget preparation x x x

Parliamentary budget discussions x

Reporting

Q & Mid Year Performance Reports x x x x x x

Annual Performance Reports . . . . . . . x

Annual MKUKUTA Implem. Report . . . . . . . . . x

PER Cluster Studies x x x x x x x x

PHDR/ Status Report . . . . . . . x

MDA & LGA Strategic Plans Review . . . . . . . . .

Strategic Policy Brief x

Views of the people x

PER and National Policy Dialogue x x

Source: GoT/MPEE. Master Plan: MKUKUTA Monitoring System, April 2006

The planning and budgeting (MTEF) process is guided by reviews of the previous

performance in the form of performance reports, the Strategic Plans of the institutions

in relation to the MKUKUTA, and a number of macro-level reviews, studies and

assessments that are undertaken from January to October. These include, i.a. Public

Expenditure Reviews (PER) cluster studies, the annual MKUKUTA Implementation

Report, and the Poverty and Human Development Report (PHDR). Not all of these

are available at present or of a sufficiently high quality, e,g. the first MKUKUTA

implementation report was made available September 2006, but provides very limited

insights. Moreoever, cluster PER have not yet been been conducted, and sector PER

are only available for some sectors. Ideally, all of these reports12 , and the budget

requests submitted by the MDAs, Regions and LGAs, would be used to prepare the

Plan and Budget Guidelines (PBG) and ceilings, which are also informed by the

estimated available resources, domestic and foreign. However, MDAs still have to

contest for resources as apart of this exercise.

The MDAs, Regions and LGAs apply the Strategic Budget Allocation System

(SBAS)13 when developing their budget requests. A modified SBAS Micro version

has been developed for LGAs, termed PLAN-REP, which besides the financial data

also includes physical data for monitoring and reporting purposes. Plan-Rep has been

rolled out to most LGAs, and approximately 50% used it for the current financial

year. Physical data is also included in the MTEF for MDAs.

12

Especially the link to MKUKUTA is important, and MKUKUTA oriented Plan and Budget

Guidelines are in place. 13

The SBAS micro and macro versions use the Epicor software.

ESPS Tanzania

22

The budget preparation at the central level includes consultations with DPs during

March and April – often in the form of sector reviews. DPs‟confirm their financial

commitments for the coming MTEF period. The estimates are submitted to the MoF.

The Cabinet Secretariat and the Inter-Ministerial Technical Committee (IMTC),

which comprises all permanent secretaries, advises the Cabinet before its approval of

the National Plan and Budget Proposal. Where the approval is granted with

amendments, the MDAs will be required to make the final adjustments to be

consolidated by MoF. Parliamentary budget discussions and approval take place in

June – prior to the Financial Year that commences 1 July.

In general, the establishment of the MTEF system improves the predictability of

budgets by stating both domestic and donor resources, by realistic costing of actions

and personnel emoluments, and by effective monitoring of expenditures in relation to

set targets. However, the MTEF system is still not fully operational, and some of the

intentions therefore not fulfilled.

The MTEF budgets are supposed to be entered into the IFMS. IMFS has facilities to

produce performance reports used for budget monitoring and control.

The reporting system will also include two types of progress reports, which have to be

submitted by MDAs, Regions and LGAs – including both physical and financial data:

Performance Reports and Three-Year Outcome Reports. The performance reports

compare the institutions‟ targets from the Strategic Plans together with an explanation

of why targets may or may not have been met. The performance reports will also

highlight major accomplishments, constraints, and emerging issues and provide a

comparison of budgeted and actual costs. There are three main types of performance

reports:

An Annual Performance Report should be prepared by 15 August and be

submitted to the relevant Parliamentary committee and MoF;

A Mid-Year Performance Report should be prepared by 25 January and be

submitted to MoF. This report is a shorter and simpler version of the Annual

Report;

A First quarter and Third quarter Quarterly Progress Summaries are submitted

to MoF.

The Three-Year Outcome Report assesses the degree to which an institution is

meeting its objectives, outcomes and impacts. The respective institutions produce the

Report by reflecting on the three-year strategic planning cycle. Inputs to the Report

are generally derived from surveys and evaluation studies and the general monitoring

process – such as the State of Environment report. The MDAs submit the Outcome

Report to the appropriate Parliamentary Committee and MoF. The LGAs submit the

Outcome Report to the Regional Commissioner and MoF.

The current LGA grant system

The recurrent budget

A new LGA formula-based recurrent grant system was introduced beginning from FY

2004-05 with the aims of:

Making the system more aligned to the LGA expenditure needs;

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Ensuring higher LGA discretionary power to adjust to the required local need

and service provision priorities;

Improving the LGAs‟ incentives to perform; and

Making more predictable, stable and transparent planning, implementation and

reporting.

The grant pool is divided into six funds targeting recurrent costs of administration and

five priority service areas: education, health, roads, water, and agriculture. The new

system will be phased in over a four-year period starting with health and education in

FY 2004-05 and roads, water and agriculture for FY 2005-06. There is one grant per

sector. A differentiation between personnel emoluments (PE) and other charges (OC)

is no longer made. The recurrent budget is primarily funded by GoT‟s own revenues.

The development budget14

From FY 2005-06 a much larger share (some 50 billion TZS) than previously will be

transferred through a new block grant system for LGAs: the LGCDG. The LGCDG

constitutes some 4% of the total GoT development budget for 2005-06, but it is GoT‟s

intent that the share increases over time. The LGCDG will on average provide 1.5

USD per capita to each LGA annually. The funds will be distributed according to a

formula: population – weight 70%, size of land area – weight 10%, and poverty based

on officially available statistics on the number of people below the basic poverty line

– weight 20%. Each LGA is allocated a discretionary CBG of USD 35,000 to provide

means for improving their capacity. The LGCDG and CBG are provided on an annual

basis.

The LGCDG is only transferred to LGAs that fulfil a range of minimum conditions

(see table below). The minimum conditions for LGAs to access LGCDG are to ensure

that funds are effectively and efficiently used in compliance with GoT statutory and

administrative requirements. The minimum conditions are mainly quantitative and

simple to assess.

Table 2.10: Indicators for assessing Minimum Conditions for LGCDG and CBG

Financial Management

Positions of council director and treasurer substantially filled S

Financial accounts for the previous FY produced and submitted for audit in time P

The councils did not receive an adverse council report for their last audited accounts P

No financial management irregularities have been reported by internal/external auditors P

Bank reconciliation statements for all accounts prepared within 15 days of the previous month S

Internal audit in place and functional P/S

Regular production of financial reports. All quarterly presented to Council/ RS/PMO-RALG P

Fiscal Capacity

Sufficient funds available to meet the co-funding obligation – 5% of the LGCDG amount S

Planning and Budgeting

Development plan approved by the council on time P

Budget process adhered to the provisions of the LG Act and Planning & Budgeting Guidelines P

Procurement

Legally constituted Tender Board P

14 The development budget is primarily donor funded. A great part of DPs‟ support is not captured by

the GoT budget, as development funds are delivered through various projects outside the GoT transfer

system.

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National Guidelines and Manuals available P

Councils Functional Process

Regular meetings of the council – at least one meeting held every three months P

Minutes of the council meeting recorded on a permanent record P

Project Implementation, Monitoring and Evaluation Capacity

Annual and quarterly work plans available P

Progress reports on project implementation available P

Capacity Building

Capacity Building Plan in place S

Reports on the utilisation of CDG submitted on a timely basis P

Notes: P – primary conditions; S – secondary conditions.

Source: PMO-RALG

The criterion for accessing the CBG is that the LGAs have developed a capacity

development plan. This indicates the synergetic link between the two grants: The

capacity building grant is relatively easier to access, and if spent wisely, it can build

the capacity to access the capital grant (LGCDG). It was amongst others established

to ensure that the non-accessing councils, with poor capacity, are given the

opportunity to improve, and access LGCDG at a later stage, and it thereby aims at

creating incentives for good governance.

The yearly LGCDG will be adjusted based on an assessment of the LGA‟s

performance. The performance measures are more qualitative and seek to evaluate the

performance of the LGA in key functional areas and compliance with policy

guidelines on governance, participatory planning, pro-poor budgeting, project

implementation, etc. – with a view to improving service delivery. The performance

assessment results in a detailed scoring of the functionality of main generic LGA

functions (see Table 2.11). The LGCDG annual allocation will be adjusted based on

the performance either upwards or downwards according to the incentive scheme (see

Table 2.12). Work is continuing on the refinement of these performance criteria, and a

criteria on the adoption of EIAs in LGA planning and design of projects is proposed.

Table 2.11: Performance measurement and scoring system

Functional Area

Total Score

Minimum score

below which a

penalty applies

Minimum score to

receive

performance

bonus

A. Financial Management 10 5 7

B. Fiscal Capacity 15 7 12

C. Development Planning 20 10 14

D. Transparency and Accountability 10 4 8

E. Interaction with LLG 10 4 4

F. Human Resources Development 10 4 8

G. Procurement 10 5 7

H. Project Implementation 10 4 7

I. Council Functional Processes 5 2 3

Total 100 51 70

Source: PMO-RALG

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Table 2.12: LGCDG and CBG Incentive Scheme Performance rating Reward/ sanction

Acceptable performance (attained minimum scores to remain

static)

Receive basic LGCDG for next FY

Very good performance (attain scores above the stated

minimum)

+20% LGCDG allocation for next FY

Poor performance (scores below the stated minimum) -20% LGCDG allocation for next FY

Non compliance with minimum conditions No LGCDG

Compliance with minimum conditions to access the CBG Receives CBG

Non compliance with minimum conditions to access the

CBG

No CBG

Source: PMO-RALG

The assessment of minimum conditions and performance measures takes place every

year during September-October as part of the planning and budgeting cycle. An

Assessment Manual has been prepared for the assessment teams that conduct the

assessments. In order to ensure objectivity and high quality, PMO-RALG contracts

consulting firms with demonstrated capacity to conduct the assessment exercise and

compile the assessment report.

Within the LGCDG system, the higher-level local governments (HLG – Districts,

Cities and Municipalities) are obliged to spend 50% of the LGCDG on Lower-Level

Local Governments (LLG – wards, mtaas, villages and kitongojis). The 50% share to

LLGs is distributed based on population data only, which provides an indicative

planning figure (IFP) within which the LLGs can plan their activities. Part of the 50%,

which the HLGs decide over, can still be spent in LLGs based on the outcome of the

bottom-up planning exercise. A planning system termed Opportunities and Obstacles

to Development (O&OD) has generally been introduced in LLGs as the vehicle to

arrive at well balanced and prioritised activities. The LLG plans are reconciled at the

HLG level. The investment menu for HLGs and LLGs differs according to mandated

responsibilities and comparative advantages. Another feature of the LGCDG is the

cost-sharing: Communities that benefit from the investments shall provide a minimum

cash and in-kind contribution.

As the grants are discretionary, in line with the decentralisation by devolution policy

of the GoT, investments are determined by each LGA, which qualifies to receive the

Grant. The technical design of projects is done at the LGA level. The project designs

are appraised and quality assured by the LGAs. Project implementation is subject to

performance assessments through the established procedures, which in turn ensure

the appropriate use of funds through sound financial management and good

procurement practices. Furthermore, MDAs have inspectors or technical officers who

oversee the LGAs‟ performance.

The Permanent Secretary (PS), PMO-RALG chairs a LGCDG Steering Committee

and its members comprise permanent secretaries from MoF, Ministry of Planning,

economy and Empowerment (MPEE), relevant sector ministries, and DPs. PMO-

RALG provides the secretariat. The LGCDG Steering Committee ensures cross-

sectoral coordination and oversees all development transfers. The Deputy PS, PMO-

RALG chairs the inter-governmental Technical Committee that assists with the

implementation of the LGCDG system and ensures the overall monitoring planning,

management and implementation of LGCDG activities. Development Partners are

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also represented in the Technical Committee. A review/supervision mechanism is in

place, amongst others due to the WB requirements.

The Technical Committee recently approved the assessment results as stated in Table

2.13 and the budget for 2006-07 shown in Table 2.14 to the LGCDG Steering

Committee.

Table 2.13: Number of qualifying LGAs in FY 2005-06 and FY 2006-07 Qualification

status

LGCDG DADG CBG

2005-06 2006-07 2005-06 2006-07 2005-06 2006-07

Qualified 58 62 0 49 112 121

Provisional 8 22 0 29 1 0

Disqualified 47 37 0 43 0 0

Total assessed 113 121 0 121 113 121

Note: DADG, District Agricultural Development Grant, which is a new grant introduced from 2006-07,

which has been designed within the LGCDG system and will be disbursed through the LGCDG

processes.

Source: PMO-RALG. Progress Report January to June 2006: Support to LGCDG System, June 2006.

Table 2.9: LGCDG System Budget (TZS millions) Actual Budget

Expenditure 2005-06 2006-07

Capital Development Grant (LGCDG) 38,261 48,303

LGCDG to non-qualifying councils 0 1,622

Capacity Building Grant (CBG) 4,351 5,294

Total discretionary grants 42,612 55219

District Agricultural Development Grant 0 4,263

Agricultural CBG 0 3,293

Total Agricultural Grants 0 7,557

Total Grants 42,612 62,775

Service Costs 2,545 3,667

Total Expenditure 45,157 66,442

Funding

LGSP (IDA) 16,582 19,882

LGSP (GoT) 2,300 2,771

GoT Development Budget 5,612 5,686

Agricultural Basket 0 7,557

Development Partners (excl. IDA) 22,059 33,782

Total Funding 46,553 69,678

Surplus c/fwd 2,355 5,590

Note: LGSP, Local Government Support Programme funded by IDA/WB.

Source: PMO-RALG. Annual Budget 2006-07, June 2006.

World Bank/ Internatioanl Development Agencies‟ (IDA) current funding covers 41

LGAs in the LGCDG system, while other development partners provide funding for

72 LGAs. IDA and other development partners are essentially financing a single

LGCDG system, using identical criteria and processes. An IDA credit in the amount

of USD 52 million was provided from April 2005 to June 2008. IDA provided an

additional credit in the amount of USD 98 million for funding of the LGSP from July

2008 to June 2011.

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3. THE NATIONAL ENVIRONMENTAL SECTOR FRAMEWORK

3.1 Natural Resources and Environmental Management Challenges

Tanzania is one of the world‟s top twenty countries as regards biodiversity and is one

of the few countries that have more than 20% of its land under protection mainly:

national parks, game reserves, forest nature reserves, marine parks, and game

controlled areas. Tanzania is endowed with abundant natural resources, which include

large areas of land, forests, wildlife, rivers, lakes, coastal zone, and fisheries. Tanzania

has a significant range of minerals. Those exploited commercially include gold,

diamonds and various gemstones. Tanzania also has coal and gas, which are located

off the coast of Tanzania.

Although natural resources are fundamental to the economy and rural and urban

peoples‟ livelihoods, the contribution is often unacknowledged, and the development

potential is often underestimated. This underestimation is partly caused by missing

market mechanisms, including pricing below the market values, as in the earlier

mentioned example (footnote 7) with the marine fisheries license fee, or in the price-

setting of charcoal, which does not represent the true production costs and

replacement value. The widespread market failure leads to sub-optimal benefits for

communities and loss of government revenues.

It is generally difficult to predict the growth potential of the utilisation of natural

resources, as the knowledge about the abundance, value, and current exploitation of

resources is limited. However, it is widely thought that contributions to Tanzania‟s

development from natural resources could be larger and benefit more people if natural

resources were managed in a more sustainable and equitable manner, building on

principles of good governance. Benefits are not always shared fairly, e.g. incomes

from wildlife hunting in an area will often not be shared with local communities in the

same area, and growth is often not pro-poor e.g. the foreign marine fishing vessels are

not landing their catch in Tanzania, and therefore not creating jobs in the harbours and

in processing industries. More could thus be done to create jobs and income in the

natural resources sector, also through community-based management, but transfer of

management rights is often complex and costly. The full potential for poverty

reduction is thus not tapped.

Instead, the natural resources sector is hampered by weak management regimes,

facing irregularities and sub-optimal management. One example is the continued

illegal logging, where the recently reassigned Minister of Natural Resources and

Tourism, Mr. Anthony Diallo, on several occasions has admitted that government

officers unfortunately are involved. The “unhealthy” part of the private sector benefits

from the current unsustainable situation, while the more responsible and sustainable

investors are discouraged by the unfair competition. Furthermore, though policies and

the legal framework are largely in place, there is a wide gap between policy, planning,

and action on the ground. The National Forest Policy, Act and Programme are

opening up for private sector involvement in the form of concessions, but so far little

progress has taken place. Similarly, the intentions of community involvement in

wildlife management, in the form of establishment of Wildlife Management Areas

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(WMAs), is still only at a very limited pilot stage and continue to face difficulties,

despite several years of implementation.

The increasing population and GoT‟s intention to have a growth in GDP per year in

the range of 6-8% in order to reduce poverty will: 1) place further pressure on and

increase competition for natural resources as an input to production, as well as for

community and household utilisation; and 2) increase pollution – in particular urban

pollution - that will also impact negatively on natural resources. This is further

emphasised by the estimated population growth and specifically the high growth rate

of urban areas (see earlier Table 2.7)

With the mainstreaming of environment in MKUKUTA, and with the passing of the

EMA and other legal and policy provisions, there is a good framework for

environmental planning, management, and enforcement. The challenge is thus to

make use of the framework in order to attain substantial and visible effects on the

state of environment for the benefit of Tanzania‟s development. This will require

substantial capacity building, institutional development, and development of inter-

institutional relations between MDAs and between MDAs and LGAs. Improved

environmental management is a necessity, but it will need to be complemented with

innovations and technology development. The challenge is also to substitute

traditional control and command regimes with environmental systems based on

economic instruments, and voluntary, incentive-based systems, and on markets – in

line with the provisions of EMA. Political attention to the environmental challenges

has increased: In response to the recent water and energy crisis, GoT adopted the

Strategy for Urgent Action on Land Degradation and Water Catchments

(SUALDWC), presenting a number of challenges (see Box 3.1). The Strategy

constitutes immediate and first steps to solve the energy crisis, but another strategy

addressing lakes and coastal areas is ready.

Box 3.1: Strategy for Urgent Action on Land Degradation and Water

Catchments

The challenges include:

1. Environmental degradation arising from the invasion of water catchments by pastoralists;

2. Environmental degradation arising from illegal human activities agriculture, pastoralism, human

habitat on mountain slopes, mountain ranges, in river valleys and around water sources;

3. Environmental degradation due to rampant deforestation for firewood and charcoal, and

construction of houses in urban centres;

4. Unsustainable small and large scale irrigation programmes and projects with negative

consequences on biodiversity and water availability in dams used for hydropower generation;

5. Inadequate data and information at district level regarding water sources and water uses for social

and economic development;

6. Environmental degradation and deterioration of water sources due to wild fires;

7. Drying up of water sources resulting from planting and growth of inappropriate alien and exotic

tree species;

8. Rapid expansion of the arid and semi-arid zones and the occurrence of drought in many part of the

country;

9. Limited public awareness and public involvement in environmental protection and sustainable

utilisation of natural resources;

10. Land use conflicts among various stakeholders (especially between pastoralists and farmers) and

the resulting environmental degradation;

11. Environmental degradation arising from mining activities;

12. Environmental pollution due to plastic wastes.

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These strategies provide on the one hand an opportunity for EMA implementation to

create a coherent framework that can ensure that the urgent actions are well conceived

and implemented in a manner compatible with the act. EMA implementation will be

able to learn from the actions of these strategies, both from those which are less

successful, and document as demonstration cases those actions that are successful and

which provide an insight into implementation of environmental management

While the strategy is addressing the problems leading to the energy crisis, incl. the

encroachment of people on vulnerable land and water catchments, there is a danger

that urgent actions on the environment can lead to forced resettlement as has

happened before in Tanzania. There are international rules, as well as national laws

and guidelines and procedures to prevent this, and to ensure that potential

resettlements are done in a proper manner. As mentioned earlier, implementation of

SUALDWC will be a test of how good governance is as there will be a need to

balance environment requirements with human welfare and rights and a need to

adhere to both environmental laws and resettlement laws

Environmental management – e.g. of rivers, lake basins, and watersheds (and other

resources) – is transboundary and has local, national, regional and sometimes even

global implications. Tanzania‟s environmental institutions provide such regional or

international focus in cooperation with counterpart ministries in neighbouring

countries in its regional cooperation and in relation to Multilateral Environmental

Agreements. Such cooperation examples exist in Tanzania, e.g. the earlier mentioned

Lake Victoria Environmental Management Project15 (LVEMP). Cooperation also

takes place locally between Districts and Regions, between MDAs, and in a

combination between these e.g. in wetlands management projects and the Pangani

River Basin Authority – but no model exists and legislation and administrative

boundaries do not yet institutionalise this.

Tanzania has in general demonstrated a strong commitment to protect the

environment through adoption and ratification of a number of international

conventions and treaties (see Box 3.2).

Box 3.2: International treaties on environment ratified/ acceded to by Tanzania

Convention/Treaty

Adoption

Ratification

Convention for the protection, management and development

of marine and coastal environment of the Eastern African

Region

1985 1996

The Vienna Convention on Protection of Ozone Layer and

Montreal Protocol on Substances that Deplete the Ozone Layer

1987 1993

The Basel Convention on the control of transboundary

movements of hazardous wastes and their disposal

1989 1993

Bamako Convention on the ban of the import into Africa and

the control of transboundary movements of hazardous wastes

within Africa.

1991 1993

Convention on Biological Diversity 1992 1996

The United Nations Framework Convention on Climate 1992 1996

15

The first phase of LVEMP ended in December 2004. The second phase will start in December 2007.

Kenya, Uganda and Tanzania entered into an agreement for the first phase to restore Lake Victoria‟s

ecosystem, but the second phase will also include Burundi and Rwanda.

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Change

United Nations Convention to Combat Desertification 1994 1997

Kyoto Protocol 1997 -

Protocol on liability and compensation on damages resulting

from transboundary movements of hazardous wastes and their

disposal

1999 -

The Cartagena Protocol on Biosafety to the Convention on

Biological Diversity

2000 2003

The Convention to Protect Wetlands of International

Importance (Ramsar Convention)

1999 2000

3.2 Policies and Legislation

The National Environmental Policy (NEP) was issued in December 1997. NEP

recognises the need to address sectoral and cross-sectoral issues in order to undertake

environmental management comprehensively in all sectors at national and local

government levels.

Box 3.3: National Environmental Policy, 1997

The Policy provides the framework for making fundamental changes that are needed to bring

environmental considerations into the mainstream of decision-making in Tanzania. It first and foremost

identifies the six most urgent environmental problems for action:

Land degradation

Lack of accessible, good quality water for both rural and urban inhabitants;

Environmental Pollution

Loss of wildlife habitats and biodiversity;

Deterioration of aquatic systems; and

Deforestation.

It provides policy guidance to determine priority actions, and provides for monitoring and regular

review of policies, plans, and programmes. The overall objectives are to:

Ensure sustainability, security and equitable use of resources for meeting basic needs;

Prevent and control degradation of land, water vegetation, and air;

Conserve and enhance Tanzania‟s natural and manmade heritage, including the biological diversity

of the unique ecosystem;

Improve the condition and productivity of degraded areas including rural and urban settlements;

Raise public awareness and understanding of the essential linkages between environment and

development, and to promote individual and community participation in environmental action; and

Promote international cooperation, and expand Tanzania‟s participation and contribution to

relevant bilateral, sub-regional, regional, and global organisations and programmes, including

implementation of Treaties.

NEP states that environmental management is a multi-sectoral and multi-disciplinary

undertaking, where success depends on the cooperation of all government agencies

(national, regional and local). The Policy states that greater institutional capacity is a

prerequisite: for the conception, planning and management of appropriate policy

proposals, policy analysis and the formulation of strategic policy decisions; and for

conducting effective management of any major component of the environment. The

Policy also points to the cause-and-effect relationship between poverty and

environmental degradation.

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Environment related Policies and Acts are shown in Box 3.4 and 3.5 respectively.

There are a substantial number of policies and acts, creating some fragmentation,

regulating urban development and environmental management, whereas forestry for

instance has a well-defined clear and comprehensive regulatory framework.

Box 3.4: Environment related Policies

National Land Policy (1995)

Industrial Policy (1996)

Agricultural Policy (1997)

Fisheries Policy (1997)

Beekeeping Policy (1997)

Minerals Policy (1997)

Health Policy (1998)

National Forest Policy (1998)

Tourism Policy (1999)

National Human Settlements Development Policy (2000)

National Water Policy (2002)

Rural Development (2003)

Wildlife Policy

Energy Policy

National Science and Technology Policy

National Transport Policy

National Trade Policy

National Investment Policy

Box 3.5: Environment related Acts

Factories Ordinance* (1950)

Town and Country Planning Ordinance* (1956)

National Industries and Licensing and Registration Act* (1967)

Wildlife Conservation Act (1974)

Tanzania Bureau of Standards Act* (1975)

Local Government (District and Urban Authorities) Act* (1982)

National Land Use Commission Act* (1984)

Water Act* (1989) amended in 2004

Tanzania Investment Act* (1997)

Mining Act* (1998)

Land Act* (1999) amended in 2004

Village Land Act (1999)

Energy and Water Utilities Regulatory Authority Act* (2001)

Forest Act (2002)

Beekeeping Act (2002)

The Occupational Health and Safety Act* (2003)

Industrial and Consumer Chemicals Act* (2003)

Note: *Acts concerned with urban environmental management.

The National Environmental Action Plan (NEAP) dates back to 1994. Key issues

relate to strengthening of the environmental management capacity of different

stakeholders and creating an enabling legislative and regulatory framework. The main

problems encountered during implementation were lack of coordination and

insufficient human and financial resources to implement the NEAP. A new NEAP is

on the agenda in line with EMA.

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The EMA was passed by Parliament in November 2004, assented to by the President,

February 2005 and became effective in July 2005. EMA is a framework Act that will

override all current legislation related to environmental management (see Box 3.6).

There will be a substantial need for harmonisation of existing Acts with EMA. EMA

builds on NEP‟s vision of a consistent and coherent environmental management

framework.

Box 3.6 The Environmental Management Act

The Environmental Management Act:

Defines mandates for: national, regional and local level institutions; civil society; private

sector; and other stakeholders.

Contains provisions for the establishment of the National Environmental Advisory

Committee.

Contains provisions for the establishment of environmental sections/offices at all government

institutions down to the village level.

Provides VPO-DoE and NEMC with the overall coordination and overseeing responsibilities.

Includes provisions for environmental planning at national, sectoral, and LGA levels.

Includes provisions for management of the key environmental challenges: land; aquatic

systems including wetlands and coastal zones; pollution and waste; wildlife, forests and

fisheries resources and biodiversity.

Defines key environmental planning and management tools including EIA, SEA; and provides

for environmental quality standards, economic instruments, and meeting of international

obligations.

Provides directives for environmental restoration and conservation.

Includes provisions for environmental analysis and record keeping, environmental

information, education, research, public participation in environmental decision making.

Provides directives on enforcement and compliance.

Contains provisions for the establishment of the Environmental Appeals Tribunal.

Includes financial provisions for a National Environmental Trust Fund.

Two national environmental management regulations have been developed: 1)

Registration of Environmental Experts Regulations; and 2) Environmental Impact

Assessment and Audit Regulations. Other regulations and guidelines are planned to be

prepared.

The most recent policy concerned with urban development planning is the National

Human Settlement Policy of 2000 (see Box 3.6). An analysis of the current urban

policy, legal and institutional framework revealed that the responsibilities are

scattered. Inconsistencies and gaps exist in the policy and legal provisions, and there

is limited perception among most of the involved institutions about urbanisation in its

broadest sense – meaning the dynamics of the urbanisation process, rather than the

management of the physical urban space. There is also a substantial discrepancy

between the policy objectives and the actual situation in the urban centres. Therefore,

it has for some years been part of the strategic plan of PMO-RALG to develop an

urban development policy.

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Box 3.7: National Human Settlement Development Policy, 2000

The overall goals for the Policy are: to promote development of human settlements that are sustainable;

and to facilitate the provision of adequate and affordable shelter to all income groups in Tanzania. The

main Policy objectives are to:

Make serviced land available for shelter and human settlements development to all sections of the

community including women, youth, the elderly, disabled and disadvantaged;

Promote a balanced development of a clearly defined hierarchy of settlements in promoting human

settlements development;

Promote and include the participation of the private sector, civil society, co-operatives, and

communities in planning, development and management of human settlements;

Protect human settlements and of ecosystems from pollution, degradation and destruction in order

to attain sustainable development;

Ensure planning legislation, building regulations, standards and other controls are consistent with

the capabilities, needs and aspirations of the various sections of the population;

Assist the poor in acquiring decent shelter;

Streamline the legal and institutional machinery for human settlements development.

In section 4.1.9, „environment‟ is defined to mean the physical, economic and social conditions.

An issue raised is that Urban Master Plans in Tanzania have not been as effective as intended, which

has rendered these to be an obsolete tool for guiding land-use changes.

In section 4.3.10, environmental management is defined to include: solid and liquid waste

management; industrial effluent discharge and air pollution; air pollution from transport and use of

fuel-woods and charcoal; encroachment on fragile and hazardous lands; and unauthorised mining –

especially quarrying of sand.

The key instruments for forest management are: the National Forest Policy (1998), the

NFP (2001), the Forest Act (2002), the Land Act (1999), and the Village Land Act

(1999). The NFP (2001-2010) was designed to promote utilisation and trade of forest

products by managing forests sustainably without compromising environmental and

cultural values. The primary strategy for realising the objective is to clarify land

tenure, to provide a transparent and legal framework, and to promote PFM in

collaboration with communities, civil society and the private sector. PFM is therefore

implemented under the NFP, which provides the framework for all forest sector

planning over the period 2001-2010.

Box 3.8: National Forest Policy and Forest Act

The National Forest Policy (1998) contains a number of statements in support of PFM. The Forest

Policy aims at creating an enabling environment for the development of the forestry sector by

decentralising responsibilities for forest management to local communities and district councils,

separating the normative and service delivery functions of MNRT through the establishment of an

executive agency, the Tanzania Forest Service (TFS), commercialising and privatising the management

of the forest plantations, and promoting greater involvement of the private sector and civil society in

sustainable forest management.

The Forest Act (2002) provides the legal framework to implement the National Forest Policy. The Act

aims to encourage and facilitate the active involvement of Tanzania‟s citizens in the sustainable

planning, management, use, and conservation of forest resources through the development of rights and

responsibilities to manage forest resources at the lowest possible level. The Forest Act supports PFM

by enabling local communities to declare – and ultimately gazette – village, group or private forest

reserves in unreserved forestland (Community Based Forest Management). The Forest Act provides for

registration through which villages groups or individuals may secure jurisdiction over forests or take on

management functions in central and local government forest reserves through the establishment of

Joint Forest Management (JFM) Agreements with the appropriate government authority.

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3.3 Institutions, Stakeholders and Coordination Mechanisms

The EMA outlines the future government administration and institutional

arrangements for national, Regional and local environmental management. EMA also

outlines the environmental management role of civil society and the private sector. To

attain the actual fulfilment of the institutional arrangements and mandates requires

concerted efforts over an extended period of time, and what is presented below is

therefore not a fair description of the current situation.

Government institutions involvement in environmental management

Vice President’s Office

The Minster of State for Environment within the VPO is overall responsible for

matters relating to environment and will in that respect be responsible for articulation

of policy guidelines necessary for promotion, protection and sustainable management

of environment in Tanzania. The Minister may issue general guidelines to sector

ministries, government departments, City, Municipal or District environmental

management committee, agency or any other public or private institution necessary

for implementation of EMA.

The two core institutions for environmental management in Tanzania are: DoE and

National Environmental Management Council (NEMC). While DoE is the entity

responsible for policy matters, and not an implementer; NEMC is the technical entity,

responsible for enforcement etc. Both are overseeing and coordinating the

implementation of EMA, and EMA elaborates very specifically the functions for DoE

and NEMC, whereas the functions of sector ministries, Regional Secretariats, and

local governments are referred to in generic terms. DoE and NEMC functions are

presented in Box 3.10 and Box 3.11 respectively.

Box 3.9: DoE functions as defined in EMA

The DoE‟s functions are:

Coordination of various environmental management activities being undertaken by other agencies;

Advise the government on legislative and other measures for the management of the environment;

Advise the government on international environmental agreements, monitor and assess activities

being carried out by relevant agencies in order to ensure that the environment is not degraded by

such activities;

Prepare and issue a report on the State of Environment in Tanzania;

Coordinate issues relating to articulation and implementation of environmental management

aspects of other sector policies; and Coordinate issues relating to articulation and implementation

of the National Environmental Policy.

Prepare and submit a National Environmental Action Plan

Box 3.10: NEMC objective and functions as defined in EMA

The objective of the NEMC is to undertake enforcement, compliance, review and monitoring of EIAs

(and SEAs for large projects, ref. Section 105), and shall in that regard facilitate public participation in

environmental decision-making. NEMC shall, i.a.:

Undertake and coordinate research and surveys;

Review environmental impact statements and recommend for approval;

Identify types of projects and programmes for which environmental audits and monitoring must be

ESPS Tanzania

35

conducted; and

Enforce and ensure compliance of the national environmental quality standards, etc.

NEMC can delegate its enforcement and monitoring responsibilities to MDAs and LGAs.

In 1998 the Vice President‟s Office (VPO) launched the ILFEMP. The overall

objectives were to establish an analysis for an informed decision on a future

framework for environmental management (Phase I) and to draft a new framework

Environmental Management Bill (Phase II). With a focus on institutional and legal

issues, ILFEMP was implemented in a highly participatory and consultative manner,

involving a wide range of stakeholders in both the public and private sectors. Several

different techniques were used, including national and decentralised consultative

meetings, technical studies and an extensive literature review. A number of studies

and consultation were made through this project. All these studies were summarised

in the document Institutional and Legal Framework for Environmental Management

Project (ILFEMP -Phase I -Final Report- Volume I and Volume II).

There were four options considered for the structure of central ministerial

responsibility for the environment:

Option one: A Ministerial level responsibility located in one of the three

powerful central offices without Statutory Bodies

Option two: A free standing central ministry, without Statutory Bodies

Option three: A ministerial level responsibility located in one of the three

powerful central offices with most central environmental management

functions delegated to Statutory Bodies

Option four: A free standing ministry with two Statutory Bodies.

Taking into account the need to put environment high on the agenda, option 3 was

taken with some modification. The EMA which enacted and came on operation in

2004 was based on this institutional framework.

The organisation structure of the VPO has been facing various changes since the end

of ILFEMP. The Environmental Division currently comprise three sections (EIA,

Pollution Control and Policy and Planning). The Environmental Management Act ,

No 20 of 2004 and the emphasis provided by the President of United Republic of

Tanzania, which has gone to the extent of creating a cabinet committee on

environment, reflects a high level concern for the environment. This in turn has led to

an effort to delineate the environment functions more clearly and focus on basic

environmental issues like: Biodiversity and Environmental Conservation;

Environmental Management of Pollution and Environmental Management of

Chemicals; Environmental Education and Research and Environmental Coordination.

These proposed Sections backed up by relevant professionals will provide a

coordinating team that will enhance Tanzania with necessary dynamism to change the

environment. It is highly likely that they will be approved in the very near future.

ESPS Tanzania

36

The total DoE staff will rise from 37 in the three sections of the present structure to at

least 64 once the new structure is in place. This represents more than a doubling of

capacity.

The NEMC is not undergoing restructuring (this was undertaken as part of the

strategic plan 2005-2009) but its capacity will be enhanced by a significant increase in

staff under the same structure. NEMC is structured with 4 functional directorates:

Environmental Research and Planning; Environmental Compliance and Enforcement;

Environmental Impact Assessment and, Environmental information, Information,

Communication and Outreach. These functional directorates are supported by four

divisions: Administration and Personnel; Finance and Accounts; Legal and, Audit.

The total technical staff will be 85 (increase from 50 technical staff at the present

time) with a supporting staff of 39 and total staff of 124. This represents a70%

increase in staffing.

Sector ministries

Each sector ministry/MDA16 shall establish an environmental section, and it is still

under discussion, whether this can be in the form of existing units and focal points, or

whether it requires new appointments. The functions and duties of the sections is to

ensure EMA compliance by the sector ministry. Each sector ministry shall, i.a.

prepare and coordinate the implementation of sector environmental action plans at the

national level, undertake analysis of environmental impacts of sectoral legislation,

regulations, policies, strategies, plans, and programmes through SEAs, and oversee

the preparation and implementation of EIAs required for investments in the sector.

Each sector ministry shall moreover prepare and submit a bi-annual report

concerning the state of the environment for the sector.

Regional Secretariats

Regional Secretariats are responsible for coordination of all advice on environmental

management in their respective Regions and they are obliged to liaise with DoE and

NEMC on the implementation and enforcement of EMA. A Regional environmental

management expert shall be appointed, who will be charged with the responsibility of

advising LGAs on matters relating to the implementation and enforcement of EMA.

Local Government Authorities

In each local government authority, a standing committee will be appointed as the

City, Municipal or District environment management committee – in case it is not

already there. Each City, Municipal, District and Town council shall moreover

designate an environmental management officer, who will often be the natural

resources officer too, and who among others shall ensure enforcement of EMA and

advise the environmental management committee on matters relating to environment.

The LGA is obliged to prepare periodic reports on the state of the local environment,

monitor the preparation, review and approval of EIAs for local investments, review

by-laws on environmental management, and report to DoE and NEMC on the

implementation of EMA. Each LGA shall, with respect to its geographical area of

jurisdiction, prepare an Environmental Action Plan below the National Environmental

16

Despite MNRT‟s significant natural resources management responsibilities, it is not specifically

mentioned in EMA, but is perceived as a sector ministry.

ESPS Tanzania

37

Action Plan. PMO-RALG provides the interface between LGAs and sector ministries

via the Regional Secretariats.

PMO-RALG adopted a new structure from July 2005. The structure distributes

responsibilities for supporting local government development amongst 8 different

divisions. Prior to the restructuring, PMO-RALG had three core divisions of Regional

Administration, Local Government and Institutional Development. The current

structure has therefore introduced new divisions to enhance service delivery

performance. The UDEM component description provides a capacity analysis of the

PMO-RALG as well as an update on the process of restructuring.

Advisory and coordinating bodies

National Environmental Advisory Committee (NEAC)

The NEAC is a new committee to be established in line with EMA, and it is an

advisory body to the Minister. The NEAC shall advise on matters related to

environmental affairs in the country. NEAC shall be composed of members whose

experience shall reflect the various fields of environmental management in the public

and private sectors and civil society. It cannot include DPs.

Parliamentary Committee and Cabinet Committee

Complementary to the already existing Parliamentary Committee on Natural

Resources and Environment, the President has established a Cabinet Committee

responsible for environmental issues, led by the Vice President. The Cabinet

Committee will oversee further policy developments and the implementation of

emergency measures.

Environmental Working Group

For each sector, GoT has established a Working Group (WG), which is a government-

led, national level forum for policy and strategy discussions and coordination of GoT

and DP interventions. For environment, the group is referred to as the Environment

Working Group (EWG). EWG consists of all relevant MDAs, key Development

Partners and Civil Society representatives. It meets on a monthly basis, and is chaired

by VPO. The EWG was initially established as the critical link between the

environment sector and national policy, planning and monitoring processes – e.g. with

regard to representation of the environment sector in MKUKUTA‟s three cluster

groups. It continues to focus on this, which also includes work on poverty-

environment indicators, environment in the Performance Assessment Framework for

General Budget Support, Public Expenditure Reviews etc. However, EWG is also

discussing the implementation of EMA, the strategy for urgent actions etc.

National Wetlands Working Group

The importance and multi-sectoral nature of wetland management was recognised by

the official creation in 2001 of the National Wetlands Working Group (NWWG)

comprising of 30 key wetland stakeholders primarily at the central level. In May

2003, the GoT established the National Wetland Steering Committee (NAWESCO)

with representation of eight ministries at PS level to provide high level coordination

on policy and management issues related to wetlands.

ESPS Tanzania

38

DP Group-Environment and Natural Resources

The development partners in the environment sector form a group referred to as DP

Group-Environment and Natural Resources (DPG-E), in line with other sector groups

under the Develpoment Partner Group (DPG) structure. The DPG-E ToR, which are

from before the prominence of the harmonisation and alignment agenda, are “to

increase the effectiveness of DPs efforts to support a concerted Environment and

Natural Resources agenda and provide coordinated contributions and inputs”. Besides

information-sharing and coordination, DPG-E has also conducted a number of joint

studies and analytical work, e.g. on the poverty-environment linkages, and taken joint

action in the form of joint missions, joint meetings with GoT and joint publication of

statements. DPG-E also appoints members to various committees.

DPG-E has mapped the assistance to the sector (see below), in order to improve the

division of labour. A DPG „Architecture Group‟ has been established to look into the

mechanisms and principles for functioning of the various DPGs and will shortly

publish their findings and recommendations. This will further influence how DPGs

will organise themselves, e.g. addressing mandates for chairmanship, communication

procedures, etc. The DPG-E meets monthly. Danida currently holds the chairmanship

for the DPG-E.

The joint work in DPG-E is meant to both inform the members how their support can

be better harmonised and aligned and to inform the dialogue with GoT and the EWG.

The aim of providing information and argumentation related to environmental

management is meant to remain a permanent feature of the DPG-E, to enable it to

play a continuing constructive role. However, it is not meant to substitute for the

development of a strong domestic (Tanzanian) civil society voice.

In the process of further development of the Tanzanian Joint Assistance Strategy

(JAS, ref. Section 3.5), Danida may be assigned as the lead donor for the environment

sector for a longer period.

Civil society and the private sector:

The Civil Society Organisations‟ (CSO) (Non Governmental Organisations / (NGOs)

Community Based Organisations (CBO), community representatives) roles in

environment and natural resources management are articulated in EMA, in many

government policies, and in the public sector reforms. EMA articulates public

participation in policy-making and planning processes. Section 11 on the National

Environmental Advisory Committee states that it shall include members from the

public and private sectors and civil society. EMA generally makes reference to the

involvement of other institutions, the public and individuals, which opens up for a

pro-active participation of civil society and the private sector.

The environment sector civil society in Tanzania is developing, but is at present

relatively weak in terms of resources and capacity, amongst others confirmed by a

consultancy conducted by COWI for Danida “Assessment of Options for Civil

Society Support within the Environment Sector Programme Support in Tanzania,

April 2006”. The Civil Society does not have a broad-based domestic constituency

and its voice is not very strong. The Civil Society is fragmented, varying from CBOs

operating at the local level to Tanzanian branches of International Non-Governmental

Organisations (INGOs) at the national level. There are few coalitions linking civil

ESPS Tanzania

39

society organisations vertically and horizontally. An overview conducted by the Royal

Danish embassy (RDE) in late 2004 showed that a plethora of organisations exist, but

many of which had a limited focus, e.g. in one district and on one issue only.

Furthermore, civil society in environment is often considered to include mainly the

“green” NGOs/CBOs, whereas legal aid NGO/CBOs in land management, social

NGOs/CBOs in slum areas etc. are considered to be outside the environment sector –

despite the potential contributions they can provide. In addition the elected bodies,

and the civil society they represent, from local councils to the national assembly, is

often not targeted for cooperation by the NGOs/CBOs.

The present Danida support to the environment sector includes the involvement of

civil society in urban environmental management and natural resources management

– mainly as service providers – in the current components and projects within these

fields. However, due to a combination of constraining factors, this involvement has

not yet fully developed as anticipated. Danida has also provided support to civil

society organisations outside the current projects and components e.g. from the local

grants authority and through the Danida‟s NGO Window‟s support to Danish NGO

projects with local partnerships – among others the Danish Hunters‟ Association, Care

and Birdlife. In many cases this support is focusing on a limited geographical area,

and only to a limited extent on advocacy – a situation that is reflecting the general

situation regarding civil society in environment in Tanzania.

The earlier mentioned consultancy gave recommendations on how to improve the

quality of the Danida support to civil society, e.g. regarding how the current projects

and components can enhance the work with civil society. These should be taken on-

board in the new ESPS. The Consultancy also pointed at a few promising

opportunities for networking (Tanzania Natural Resources Forum), for more emphasis

on the advocacy side (Policy Forum), for linking to the elected bodies ((Parliamentary

Strengthening Programme), for capacity building and for domestic funding

(Foundation for Civil Society) – all of which could be utilised by ESPS.

An example of one of the recommendations is Foundation for Civil Society (FCS).

FSC was established in 2002, with the aim to improve civil society‟s capacity for

participation and service delivery. FSC provides grants and capacity building support

to civil society organisations to enable disadvantaged and vulnerable citizens to access

information and understand policies, laws and their rights; engage effectively in

policy formulation and monitoring of poverty reduction; and contribute to social

development and to constructively hold the government and private sectors to

account. FSC is financially supported by a number of bilateral development partners,

including Danida through its governance funding. Unfortunately, the environment

sector civil society has so far utilised the opportunities provided by the FCS only to a

limited extent.

The private sector also play an important role in the implementation of EMA, as it is

the private sector and its activities who is the subject for implementation, and private

sector will facilitate implementation of EMA e.g. by initiating and financing EIAs for

their projects, by reacting to the economic instruments etc. It is therefore pertinent that

awareness raising for the private sector within the respective fields e.g. mining,

agriculture etc., is conducted, in order to inform about rights and responsibilities, as

well as opportunities and benefits of complying with the Act.

ESPS Tanzania

40

The involvement of the private sector is part of Danida‟s present support to the

environment sector. The private sector is primarily involved in the urban support in

construction of investment projects through competitive bidding. The private sector

could also be involved in public-private partnerships concerned with provision of

public services and maintenance of public infrastructure, e.g. solid waste

management, water supply, sanitation, energy etc. Village level natural resources

groups (e.g. PFM forests groups) could enter into partnerships with the private sector

concerning the utilisation, processing and marketing of the natural resources and

derived products.

3.4 Financing of Environmental Activities and Investment Plans

A Public Expenditure Review of Environment was undertaken in 2004 with the

objective of establishing levels, trends and distribution of environmental expenditure

and revenue in relation to Tanzania‟s environmental priorities, and poverty reduction

strategies (Vision 2025 and the National Poverty Reduction Strategy, 1997). A second

PER has been in the pipeline since March 2005, but has so far not materialised.

Availability of detailed break-down of data was a major limitation to the conduct of

the first PER. In particular, data on revenue and expenditure were in many cases not

available in the sector ministries.

The estimates of the contribution of the forest sector to GDP differ. Most estimates

are between 2 and 3% of GDP. The Economic Survey17 quotes a combined average

percentage contribution per year for forestry and hunting to be 3.3% of GDP over the

period 1995 to 2005. In comparison, agriculture contributed 35.3%, tourism 13.0%,

and fisheries 2.5%. On the other hand, recent estimates, that also include illegal use of

forest resources, as well as tourism-related income, suggest that the forest sector‟s

total annual contribution could be as high as 10-15% of total GDP.

While environmental resources contribute significantly in terms of revenue and

national income, the environmental sector is not allocated sufficient budgets to

maintain sustainable environmental management. As regards fund allocations, the

PER shows that actual disbursements do not match sector requirements, in the case of

DoE and NEMC (see Table 3.1).

Table 3.1: Budget allocation and expenditure at central level (TSZ million)

Institution 2000/01 2001/02

Budget

Requirement

Approved

Estimates

Actual

Release

Actual

Expenditure

Budget

Requirement

Approved

Estimates

Actual

Release

Actual

Expenditure

DoE 277.5 172.5 110.3 110.3 583.8 178.2 178.2 178.2

NEMC 1,100.0 256.7 256.7 256.7 1,500.0 527.8 527.8 527.8

Source: VPO, 2004

The PER identified the following key issues for improvement of the funding situation:

Mismatch between revenues collected and allocations to the environmental

sector;

Inadequate environmental revenue collection due to under-pricing of

environmental resources and disregard of replacement cost;

17

GoT. Economic Survey for 2003, Planning and Privatisation Commission, 2004

ESPS Tanzania

41

The environmental sector is not allocated sufficient budgets to maintain

sustainable environmental management;

Actual disbursements to MNRT, DoE and NEMC do not match sector

requirements;

Inadequate implementation of Multilateral Environment Agreements;

Inadequate capacity for environmental management at sectoral and local

government levels; and

Weak awareness of poverty-environment linkages.

The findings of the earlier quoted WB study on natural resources and growth and

poverty reduction18 show the three revenue generating sectors, forestry, wildlife and

fisheries, are making important contributions to both formal and informal and

subsistence economies. However, only fisheries is a net contributor to Treasury, while

forestry and wildlife are subsidised through government allocations to cover their

recurrent expenditures and through foreign grant allocations to finance a major part of

their development budgets. This is mainly due to the limited official revenue

collection, as it is believed that only a small fraction of the revenue due is collected

(some estimates as low as 5% of potential revenue in the forest sector) and registered.

It is not due to exaggerated budgets in these respective institutions.

National budget allocations to the forest sector have generally been inadequate and

subject to fluctuation. While FBD‟s allocation was 50% of the total MNRT budget in

1996-07, it decreased to 18% in 1998 due to the introduction of the Forestry Retention

Scheme. The Retention Scheme allows MNRT to retain 70% of the collected forest

revenues. The remaining 30% is transferred to Treasury. After deduction of 14% for

MNRT‟s administration, the remaining 56% is allocated to FBD to finance its

recurrent expenditures (except for staff salaries that are paid by the Treasury) and

some development expenditures. LGAs are allowed to retain 5% of the collected

revenues. There are indications that the forest sector suffers from under-financing, not

only at the central level but also at the local level. The approved local government

budgets are much lower than the requested budgets and actual disbursement is even

lower.

Table 3.3 indicates the annual revenues collected by MNRT during 2003 and 3004.

Table 3.4 indicates the budget allocated to MNRT and the share received of the

requested budget.

Table 3.2: MNRT annual revenues (TZS billion) Sub-sector 2003 2004

Forestry 5.29 5.82

Wildlife 9.17 9.55

Fisheries 6.99 9.70

Tourism 0.83 0.96

Note: Includes revenues collected and retained at source.

Source: MNRT 2004

18

WB. Summary Paper: Study on Growth and Environment Links for Preparation of the Country

Economic Memorandum, Natural Resource Based Growth, May 2005.

ESPS Tanzania

42

Table 3.3: MNRT Allocated budget and share of requested budget

Sub-sector 2002-03 2003-04

TZS bn % TZS bn %

Forestry and Beekeeping 4.898 24 7.634 29

Wildlife 6.593 33 7.587 29

Fisheries 3.688 18 4.648 18

Tourism 2.208 11 2.881 11

Other - -

Total MNRT 20.243 26.257

Note: The amounts are recurrent expenditures only.

Source: MNRT 2004

3.5 Donor Support, Interventions and Environmental Coordination

GoT took an initiative in 2004 to embark on the development of a Joint Assistance

Strategy (JAS) for its multiple development partners. In Rome in 2003 and later in

Paris 2005, development partners committed themselves to increase harmonisation

and alignment by reducing multiple country strategy processes, gradually shift

assistance from projects to basket funding and budget support, and as a consequence

increase predictability of aid flows and reduce the developing countries‟ and DP‟s

transaction costs. The JAS makes reference to the Paris Declaration on Aid

Effectiveness (March 2005) and the MKUKUTA and shares similar objectives. The

JAS is intended to have an impact on the individual donor‟s portfolios and use of aid

modalities, as well as strengthen the links between sector and macro level processes.

The JAS formally came into force July 2006.

The overall objective of JAS is to effectively implement MKUKUTA, that means to

contribute to sustainable development and poverty reduction by consolidating and

coordinating government efforts and DP support under a single government led

framework.

In order to reduce transaction costs for both the GoT and DPs, DPs will rationalise the

number of sectors or areas they engage in. At the same time, the number of DPs that

are „active‟ in a sector or thematic area will be limited to an appropriate level.

Partners outside a particular sector/area can nevertheless provide financial assistance

and will be represented by those DPs that are active.

As a supplement to JAS, DPs has drafted a Joint Country Analysis, in order to

eliminate and/or limit the individual agency analytic work, which informs the

individual country programmes. In essence, the country programmes will thus be

harmonised and aligned. DPG-E has given input to the Joint Country Analysis, and it

therefore includes sections on environment, forestry, fisheries, wildlife, and

urbanisation. Furthermore, the Danish country strategy in the context of the JAS was

recently presented to the Board of Danida.

The EWG has, under the leadership of VPO-DoE, conducted JAS discussions, and

prepared an input to the JAS‟s action plan, which is expected to outline the

implementation sector by sector. It amongst others mentions:

The Environmental Management Framework is largely in place, but alignment

of sector ministries, LGAs and CSOs environmental plans, strategies and

programmes with EMA remains;

ESPS Tanzania

43

The difficulty in harmonising and aligning global environmental initiatives

etc., and the transboundary aspect of environment making it necessary to work

beyond the political administrative boundaries;

Capacity Building for implementation of EMA is the major challenge, but so

is the TA absorption capacity;

The need for increased attention to the brown environmental sub-sector, based

on a mapping of the current division of labour;

Promotion of the budget support modality is relevant, but the environment

sector has a “permission” to earmarked funding (see later), and pooled

earmarked funding is seen as an initial step towards budget support;

Increased environment sector participation in the overall national planning and

budget process and the PER Cluster Working Groups – amongst others to

ensure commitments from government in resource allocation to the sector;

Revision of EWG‟s mandate in light of the establishment of the Cabinet

Committee on Environment and the National Advisory Committee.

As mentioned above the Minister of Environment has been mandated19 to ensure

financing beyond the preferred modality – direct budget support.

As also mentioned above the DPG-E has conducted a mapping exercise creating an

overview on how DPs distribute their environmental assistance to sub-sectors and

geographically (see Table 3.4).

Table 3.4: Key DPs current engagement in the Environment Sector

EC

WB

UN

DP

FA

O

UN

Hab

itat

UN

IDO

/IL

O

Bel

giu

m

Den

mar

k

Fin

lan

d

Ger

man

y

Net

her

lan

ds

No

rway

US

A

Beekeeping x x

Wildlife x x x x x x

Ecosystems x x

Biodiversity x

Wetlands x x

Forestry x x x x x x

Fisheries x x x x

Land management x

Water management x

Energy x

Marine/ Coastal x x x x

Lake management x x

Sanitary control x

Water/ sanitation x x

Urban environment x x

Sewerage x

Waste management x

Rural development x

Almost all DPs support the green environmental sub-sector; the blue sub-sector is

primarily supported the multilateral DPs (WB and European Commission (EC)); and

19

Speech by Minister to DPG-E 25/4 2006, and confirmed since in various meetings

ESPS Tanzania

44

UN-Habitat and Denmark largely cover the brown sub-sector. This picture, of number

of DPs per sub-sector, is further confirmed by the distribution of funding volumes,

which also indicates large volumes to the green and blue part of the sector and limited

funding to the brown side. Thus the indication that there is a need to balance the

sector financing by drawing attention to the brown part of the sector.

The mapping also shows, that all Tanzania‟s Regions receive some assistance and 94

out of 120 Districts receive assistance. Nevertheless, the overall picture is that

development assistance is very unevenly distributed geographically among the

Regions/Districts.

3.6 Danida’s Current Support to the Environment Sector

Danida‟s support to the environment20 falls under two main categories: urban

environmental management and natural resources management – the latter comprising

forestry and wetlands. A number of reviews of the support have been conducted,

please refer to the introductory chapter.

Urban Environmental Management (UEM)

The Danish support to UEM is based on Tanzania‟s “Sustainable Cities Programme”

guided by the UN-Habitat concept. The support was initiated in 1998 and has covered

six Cities and Municipalities: Iringa, Tanga, Moshi, Morogoro, Arusha and Mwanza.

The support to Iringa, Moshi and Morogoro is ongoing but will cease during 2006-07.

The support has been/is concerned with development of environmental profiles,

environmental planning and management (EPM), development of strategies and

action plans, of Environmental Information Management Systems, and

implementation of demonstration projects, including Cleaner Production projects. The

activities have been touching upon upgrading of unplanned settlements, including

demarcation and titling, water supply, storm water drains, solid waste management

etc. The activities are undertaken by thematic and neighbourhood based working

groups with representatives from the Municipality, civil society, and the private

sector. Working groups bring together the people who are affected by the

environmental problems, the people who cause the problems, and those who know

about how to solve the problems. Support is also being provided to the Urban

Authorities Support Unit in PMO-RALG, in order to provide technical backstopping

to the supported urban centres and to support the development of a more

comprehensive framework for UDEM.

Forests

The Danish support to forestry began in 1999 in Iringa Region with two projects, and

continued with projects in Lindi Region. The projects promoted the active

participation of forest-adjacent communities in the protection, management and use of

forest resources in natural woodlands, both within and outside reserves. The projects

were implemented in accordance with the new Forest Policy (1998), the Land Act

(1998) and the Village Land Act (1998).

20

For further information, please consult www.ambdaressalaam.um.dk/en

http://www.ambdaressalaam.um.dk/en

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45

The Participatory Forest Management Component (PFM) was approved in December

2002 and launched in June 2003 for a five-year period with a budget of DKK 57.5

million. The PFM Component is contributing to a comprehensive reform of

Tanzania‟s forest administration and management – placing emphasis on participatory

management systems of natural and other forest resources. PFM is provided for in the

new Forest Act (2002). The component is implemented through government systems,

whereas the previous projects partly made use of parallel systems. The shift in

implementation mode has delayed implementation due to Government capacity

constraints, and the component has been extended at no-cost until 2009.

Wetlands

The Danish support to sustainable wetlands management began in earnest with the

launching of the Sustainable Integrated Management of the Malagarasi-Muyovozi

Ramsar Site (SIMMORS) Project in February 2001 to assist Tanzania in the

fulfilment of its obligation under the Ramsar Convention. The Project will last until

June 2007 and has a budget of DKK 31.4 million. In parallel, Danida supported

capacity development in the Wetlands Unit of the Wildlife Division (WU-WD), for a

three-year period, which ended in 2003.

The SWM Component was approved in October 2003 and launched in July 2004 with

a five-year implementation period, scheduled to end in June 2009. The Component

budget is DKK 34.3 million. The execution of the Component did not proceed with

the intended rate of implementation for a number of reasons related to institutional

constraints in WU-WD, the conceived implementation modality, and too ambitious

targets. The under-spending during the initial years – based on a budget review –

suggests that the implementation period could be extended until June 2011 without

budgetary implications. The SWM Component will not formally become part of the

ESPS21, meaning it will not be included in the 180 million DKK budget. Letters have

been exchanged between WU-WD and Danida concerned with the extension of the

implementation period to June 2011, and the extension is thus approved on both sides.

The SIMMORS activities will be incorporated in the SWM Component from July

2007. It is expected that a mid-term review will take place in September 2007 to look

into the remaining implementation period.

The Component Document, October 2003 will continue to provide the framework for

implementation until June 2011 – although a number of changes have occurred as

regards the implementation arrangement in order to ensure consistency with the

evolving local governance framework, e.g. integration into the district planning

system, cooperation with PMO-RALG. Another change has been the approval of

EMA. EMA has in its Clause 56 specific requirements for sustainable management of

protected wetlands and stipulates sector ministries‟ responsibility in their respective

areas of jurisdiction.

There is little doubt that isolated external support to wetlands management seen in the

long term perspective is not feasible. Wetlands management is an integrated part of

environmental management and is best handled as such. Accordingly, wetland

management should be seen as a component of the implementation of EMA. Viewing

21

Danida Programme Committee recommends that the SWM is not being considered as a component

in the new ESPS, but as an old component under an exit strategy (Ref. Dan-E 2006b).

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46

wetlands management in the context of EMA implementation, would facilitate the

needed integration and at the same time EMA implementation would gain the full

benefit of the lessons learned and structural and institutional achievements in wetlands

management – fully acknowledging the fact that MNRT has the mandate and the

experience.

The SWM component objectives and outputs will remain unchanged, but will be

interpreted in relation to ongoing governance changes, including a reflection on the

EMA requirements.

The piloting of sustainable wetlands management will continue in selected wetland

areas in Mbeya and Iringa Regions and at two Ramsar sites. The National Wetland

Management Strategy is in preparation in order to guide sector ministries‟, LGAs‟ and

donors‟ activities in protected and non-protected wetland areas. The WU-WD‟s role

of implementing pilot projects in selected Regions will diminish and will gradually be

replaced by a coordination and monitoring/overseeing role.

Poverty-Environment Project

The Poverty-Environment Project 2003-2006, which is financed outside the Special

Environmental Assistance, is a joint project between UNDP, DfID, Danida and the

VPO. Its purpose is to integrate environment and livelihoods issues in the Poverty

Reduction Strategy Process, through increased awareness of the poverty-environment

linkages, improved access to- and utilisation of environmental data, and capacity

building for mainstreaming. While DfID has provided a full-time adviser (now phased

out), Danida has pooled it‟s funding with UNDP, which is administering the project.

The project has been very successful with the mainstreaming of environment in

MKUKUTA. The project has been positively reviewed by UNDP in October 2006,

but no continued funding from Danida is anticipated, as many of the activities will be

continued in the context of EMA implementation.

Climate change

A climate change project was initiated in early 2006 as part of Danida‟s Climate

Change Action Programme. The project aims at increasing awareness on climate

change and on appropriate responses – in the context of Tanzania‟s development of

the National Adaptation Programme of Action (NAPA). The NAPA process has been

ongoing in Tanzania for some years. The Danida support will add to the analytical

work, e.g. linking sector data to changes in rainfall and temperature, which will

inform the prioritisation of actions to be taken. The support has included funds for a

national conference on climate change with international participation, including

participation from the UNEP-Risø centre. Once NAPA is finalised, Danida may

finance specific, prioritised adaptation actions outside the programme context.

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Part II: The Environmental Sector Programme Support

4. PROGRAMME FRAMEWORK AND AGREED ASSISTANCE

4.1 Perspectives and Rationale for the Assistance

The Danida assistance to environment can be justified at various “levels”, from the

reasons for supporting the environment sector in Tanzania to reasons for supporting

the specific components, and reasons for the chosen implementation mode. A number

of strategic considerations in this respect are given below:

1. The ESPS will take advantage of the momentum gained with the political and

economic development path of Tanzania, and with the successful mainstreaming of

environment in MKUKUTA and the passing of EMA.

Tanzania has in recent years experienced an annual GDP growth in the range of 6-

7%. A GDP growth of this size is required in order to sustain both broad-based

economic growth and reduce poverty. Environment and natural resources have a

prominent place in this ambition.

GoT is making stable progress in reforming in a transparent and accountable manner

the public administration in terms of planning, implementation, and financial

management, and specifically pursuing a decentralisation by devolution policy. The

reforms have provided new opportunities for LGAs to address local development

issues and prioritise development interventions – including environmental

management. The introduction of the LGCDG and CBG provides both added

resources for new investments but also incentives to perform well.

The Government of president Kikwete has reiterated its commitment to market

oriented reforms, and this will give more space to other stakeholders in environmental

and natural resources management e.g. the civil society, including communities, and

the private sector.

MKUKUTA has successfully mainstreamed environment across the three broad

outcomes, which all sectors are seeking to contribute to. The mainstreaming has been

continued in the development of the monitoring system. The challenge is now to

follow up in further implementation

EMA provides an opportunity to substantially enhance environmental management in

Tanzania - coinciding with a high degree of political will to address environmental

challenges. Substantial changes are indeed required in the way environmental

management is perceived and practised in the public administration, private sector and

civil society in Tanzania in order to fully utilise the opportunities being provided.

EMA constitutes a comprehensive framework for environmental management at all

levels, in all sectors, and for coordination of environmental interventions both

horizontally at local, regional and national levels and vertically within the sectors –

the implementation of which will be guided by MKUKUTA and the National

Environmental Policy. As a result of putting a cooperation and coordination structure

in place, EMA provides much better prospects for design and implementation of

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interventions that promote sustainable development from a more holistic perspective,

both nationally and locally.

2. ESPS will balance interventions between natural resources management

interventions (green) and the urban/ industrial environmental management

interventions (brown).

In the current development of Tanzania, natural resources constitute an important

input to growth and poverty reduction. The pressure on resources are increasing,

emphasising the challenge of sustainable natural resources management. The

economic, social, and environmental developments are also evident in the rapid

urbanisation and growing industrial sector, posing increasing pollution problems. The

„brown issues‟ will increase in extent and severity over time, resulting in reduced

quantity and quality of the natural resources affecting livelihood conditions in both

rural and urban areas. Increased attention by GoT and DPs to the urban agenda is

urgently required.

In general, the legal framework for natural resource management is largely in place.

While EMA has provided a framework for environmental protection, more needs to

be done when it comes to policies and legal developments in the “brown” sector.

More also needs to be done in the development, implementation, and financing of

environmental interventions in urban and industrial areas. DPs funding of this area is

limited compared to other areas, and cannot be justified by lack of needs.

Danida has in its support in the past aimed at a balance between natural resource

management and urban environmental management, and this will continue. In terms

of budget, the allocation in ESPS to the brown environment will be relatively larger in

order to – in part – balance the fact that the on-going Danida funded activities, which

will remain funded well into the ESPS, are natural resource management

interventions. The relatively larger share of budget to urban environmental

management is also to redress the imbalance that exists in DPs‟ development

assistance that favours the “green” environment.

Finally, the implementation of EMA through its status as the overall national

environmental management framework will necessarily relate to the green, blue and

brown environments.

3. ESPS will aim at a link between policies, strategies and implementation in the

field, and ESPS will consolidate and sustain achievements made so far and

replicate these nationwide.

As mentioned earlier, the policies and legal framework are largely in place in the

forest sector, and ESPS will thus continue to contribute to a major roll-out of the

Participatory Forest Management. Experiences gained in previous Danida funded

projects, and in the life-time of the PFM component will inform any revisions of the

policies and legislation, and is in fact already informing development of regulation

and guidelines.

As regards ESPS urban environmental management interventions, field

implementation in the form of urban LGA investments is intended from the

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49

beginning, while an Urban Development Policy is under development. However, not

all urban LGAs are likely to access the support in the initial years, as it will be linked

to the LGCDG, and additional specific criteria are intended to only create investment

capacity in LGAs with a sound environmental management vision. So implementation

will most likely not be nation-wide from the onset, before the policy is in place, and

implementation will be informed by the policy. Past experiences with field

implementation in selected Cities, Municipalities and Towns, funded by Danida and

others, as well as new lessons, will feed into the UDEM Framework.

The implementation of EMA is guided by regulations, which will be gradually

developed, coinciding with actual implementation. Implementation in the field,

whether by MDAs or LGAs, is furthermore guided by the preparation of these

institutions environmental action plans and state of environment reports, in

accordance with EMA.

4. ESPS will fulfil commitments on harmonisation and alignment by continuing the

transition from projects to support in a pooled manner, and will adjust

appropriately to government institutions’ implementation capacity and gradually

build capacity in order to increase speed of implementation.

The modality for cooperation between GoT and DPs is gradually changing. National

sector or sub-sector frameworks are emerging, in line with JAS, which over time are

intended to enable a development of full-fledged SWAps. This enables joint DP

support, contributing to the frameworks. This coincides with the general trend

amongst many donors – including Danida – to focus assistance on fewer sectors, and

with a more limited scope within the selected sectors.

VPO-DoE has initiated the formulation of the EMA-Implementation Support

Programme, after conducting a capacity needs assessment to address current

shortcomings and accelerate implementation. The EISP is a national programme that

enables MDAs, LGAs to implement EMA, and enable DPs to contribute to a unified

system. DPs funding support is expected to mainly be channelled through a basket

fund arrangement. The EISP will initially prioritise MDAs, but will also address

LGAs through PMO-RALG (see below).

GoT has, under the leadership of PMO-RALG and with support from Danida, over the

last two years developed the UDEM Framework. The UDEM framework will provide

a complementary funding facility in LGCDG and CBG, and all urban LGAs will have

access to the UDEM grants provided they fulfil minimum conditions. UDEM will,

furthermore, contribute to an enabling national framework through preparation of an

Urban Development Policy and harmonisation of urban-related policies and

legislation. The UDEM Framework is likewise a national programme that enables

MDAs and LGAs to address urban environmental challenges, and DPs to contribute to

a unified system. DPs funding support will mainly be channelled through a basket

fund arrangement.

The EMA and UDEM frameworks are, from the onset, conceived as GoT frameworks

in which the DPs will adhere to common objectives, implementation modalities, and

basket funding arrangements – to which the ESPS also subscribes.

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50

PFM is moving towards a SWAp arrangement, which is anticipated to be

operationalised during the ESPS implementation period. A SWAp Letter of Intent has

been signed by key GoT institutions and key DPs, and a NFP SWAp Steering

Committee has been established as a result. The SWAp will pursue a forest sector

basket fund with common objectives, work plans, budgets and reviews. Funds from

the forest sector basket will be routed to: MDAs and to LGAs through PMO-RALG.

The implementation of EMA, UDEM and PFM are subject to GoT‟s planning and

budgeting procedures, allowing involved institutions to set the implementation pace

according to their respective capacities and experiences. The planning is/will be based

on three-year rolling cycles (MTEF) that are amended annually – making room for

adjustment of the implementation pace if need be. The pace of implementation is

anticipated to pick up, as more LGAs will be demanding the services, and as more

DPs join the frameworks resulting in increased funding allocations.

6. ESPS will further qualify the GoT and DP dialogue and cooperation, will

facilitate the role of Danida as a key partner, and will seek to strengthen civil

society’s voice, in order to enforce domestic accountability.

ESPS will contribute substantially to launching and implementing the EMA and

UDEM national frameworks and further developing the PFM framework. Initially, not

many DPs have confirmed their commitment to the EISP and the UDEM Framework,

and thus Danida‟s firm commitment to support GoT‟s efforts is essential for

launching the EISP and the UDEM Framework.

The DPs are important drivers of change in dialogue with GoT, as changes require

policy dialogue, as well as technical assistance in its widest form. Danida has for

many years played a leading role in broadly promoting the environment sector in

Tanzania, and has played a key role in shaping the way the sector works, including

taking on the current chairing of the DPG-E. The chair function further enforces the

leading role, and expectations to the chair are substantial and varied. Opportunities are

also apparent in the DP and GoT dialogue, and needs to be utilised. ESPS will include

funds to support selected DPG-E activities, such as joint DP studies, facilitation,

meetings and seminars etc.

GoT dialogue with DP cannot substitute for domestic dialogue and accountability

relationship between the GoT and the citizens of Tanzania. However, the advocacy

role of the civil society in the environment sector is at present weak, and it is therefore

important to contribute to the creation of a stronger domestic voice in the sector. This

can be done through various means, some of which has been referred to in an earlier

mentioned consultancy, and funds will be set aside to this.

4.2 Scope and Objective

The ESPS will contribute to implementing MKUKUTA and the new comprehensive

environmental management frameworks at central and local levels that address rural

and urban environmental problems and challenges. It will do so with the aim of

improving the environment and reducing poverty (in its broadest form) and thereby

improve livelihood conditions in rural and urban communities. The ESPS will

respond to Tanzania‟s environmental challenges as identified in the EISP, the UDEM

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Framework, and the NFP. The ESPS will be a five-year programme from July 2007 to

June 2012.

ESPS development objective

Sustainable management of Tanzania‟s natural resources and environment

contributing to growth and income poverty reduction, to social wellbeing, and to

improved governance and accountability.

Components

Support to EMA Implementation Support Programme;

Support to UDEM Framework;

Support to PFM Programme.

The three components are very different in nature. The EMA Component is more

“global” in nature and will provide a common framework for all environmental

management interventions in Tanzania, while the UDEM and PFM components will

be guided by their respective policy, strategic and regulatory frameworks. The UDEM

Component addresses urban environmental issues comprehensively in all urban

centres in Tanzania. The PFM component is part of the NFP and is currently

implemented in four regions, although this is likely to change during the programme

period.

The ESPS is fully coherent with the MKUKUTA outcomes, targets and strategies.

The ESPS Development Objective is directly linked to the three MKUKUTA

outcomes, but also draws a line from the previous programme objective. The

MKUKUTA poverty monitoring system includes a number of poverty-environment

related indicators, which the ESPS will be monitored against (see below).

4.3 Assumptions and Risks

DoE, PMO-RALG and FBD are fully committed to implementing their respective

programmes. DoE is in the process of restructuring in line with EMA, and it is

thought that this will facilitate a smooth implementation. Similarly, PMO-RALG has

gone through a restructuring, has expanded its offices, and recruited numerous new

staff – all of which will also facilitate effective management of the UDEM

framework. Finally, the TFS is under establishment as an executive agency, which

also involves new management of PFM. It is assumed that the executing institutions

will be allowed22 to appoint competent staff, in the case these are not already in place,

to implement their programmes and establish relations with other MDAs, whose

participation will be essential for successful implementation. The degree of

commitment of beneficiary MDAs and LGAs is likely to vary – to a large extent

depending on their resources and their appreciation of the support provided.

The individual components are quite different in scope and complement each other,

but they will in some cases touch upon similar issues and target same groups and

individuals e.g. a district environmental officer, who is often also the natural resources

officer may be targeted by more than one component. Other GoT or DP initiatives in

MDAs and LGAs may also overlap with the EISP, UDEM Framework and PFM

22

PO-PSM needs to give its consent and MoF to provide the budget.

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52

Programme efforts, and confuse the situation. Coordination in the sector is key to

eliminate any overlaps, and it will be the task of the GoT to coordinate the sector

through EWG and other mechanisms. It is also assumed that the strategic planning

and budgeting processes will facilitate that various efforts will complement each other

and generate synergy effects.

The public sector reforms in Tanzania are quite ambitious, making radical changes in

the public administration. As the implementation of the EISP, UDEM Framework and

PFM Programme are fully integrated into the new procedures, the successful

implementation of the ESPS depends on the effective operationalisation of these

reforms and the functioning and sustainability of these new procedures. It is assumed

that the public administration procedures will mature and develop further over the

next years.

Tanzania is politically and economically very stable. It is anticipated that annual GDP

growth will continue to be in the range of 6% over the next five years and could even

be higher if agricultural reforms are pushed through. On the other hand drought and

water shortage could seriously affect economic growth and thus delay the impact of

the MKUKUTA. There would also be risk that pursuance of short-term economic

gains could be at the expense of natural resources‟ quality – as there are plenty

examples of so far – if environmental management and governance practices and

accountability are not developed urgently and become immediately effective. The

ESPS is in itself contributing to a better understanding of the environment, and to

planning and implementation of environmental interventions, thereby

counterbalancing this risk.

For the UDEM component, the main assumptions are:

The public sector reforms in Tanzania successfully increase the effectiveness

of the civil service.

The capacity of the LGAs is sufficient to fulfil the conditions of the capital

grant, make use of the capacity grant and ensure adequate operation and

maintenance.

3 Central government institutions are able to focus on their facilitating and

regulatory role and allow LGAs to assume the implementation role.

Development partners provide sufficient funding and channel their funds

through the UDEM framework.

Urban communities will actively participate in the planning and implementing

of the UDEM activities.

The main risk factors include:

The public sector is overwhelmed by the number of reforms and is unable to

complete them.

Vested interests work against the public sector reforms e.g. in decentralisation

and the process takes much longer than envisaged.

PMO-RALG does not have sufficient capacity to coordinate and manage the

UDEM framework.

The continued low political attention given to urbanisation challenges leading

to lower priority.

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Political instability at local government level which means that longer term

urbanisation challenges are not addressed.

Cost recovery for operation and maintenance proves too difficult and

politically costly.

PMO-RALG does not sustain its commitment to the UDEM framework in

terms of allocating resources and coordinating other agencies even through it

is obligated to do so by its mandate.

A mismatch in demand for urban investments resulting from rapid

urbanization and the available supply of services and investments.

Vested interests in the central government ministries who are not willing to

release the influence that an implementation role provides or do not believe

the decentralised approach can yet work well.

LGAs are overwhelmed with the range of tasks that they abdicate from their

responsibilities thus obliging central ministries to step in.

Coordination in the sector is insufficient to eliminate any overlaps with other

GoT or DP initiatives in MDAs or LGAs.

Staff are transferred and replaced by less competent staff and delays are

experienced in funds transfers from Treasury.

The current debate over approaches to urban development leads to coherent

and constructive approaches being adopted rather than conflict and division.

DPs do not join the UDEM framework as the GoT directs donors away from

the urban development area towards other priorities and/or accepts other

modalities for support

Donors are not stable in their cooperation and change focus before allowing

results to be consolidated.

Communities have other much more pressing needs e.g. jobs and housing that

reduce the interest in UDEM activities

LGAs are not able to properly communicate the need for and benefit of

UDEM activities to the communities.

For the EMA implementation component, the main assumptions are:

Increased commitment, by DoE and NEMC, to implementation of EMA.

Increased commitment by MDAs to implementation of EMA

Increased management capacity in DoE/NEMC to coordinate the

implementation of EMA.

Continuing political support for environmental management.

The main risk factors include:

A reduction in the overall budget of the VPO as a result of worsening

economic performance or less political priority attached to environment;

A reduction in the priority attached to EMA implementation by DoE;

Lack of visible results in the first year or two leading to impatience with the

longer term institutional approach and a desire instead to see quick but poorly

considered action on the ground;

Ministry of Finance and DPs may not wish for external support to be used for

EMA implementation or for the EISP to be the channel of support;

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Lack of awareness and understanding of EMA and the specific roles of the

MDAs in question, and EMA‟s importance and potential benefit for the

specific sector,

Presence of more urgent problems and challenges in the MDA sector so that

environment is placed on a lower priority;

MDA budget constraints;

Passive resistance of MDAs who agree on the surface but are unconvinced in

reality;

Inability to find highly committed and knowledgeable individuals or

willingness to assign them to the task of coordinating EMA implementation;

Institutional conflict between DoE/NEMC or MDAs;

An inability to prioritise and accept that to achieve little well is better that to

try to achieve much but fail;

Goal displacement and crisis management;

Low absorption capacity in DoE due to recent budget increases;

Worsening economic performance and the need to reduce commitment to

longer term challenges such as the environment;

Powerful vested interests that work against the implementation of the act

because it threatens their activities;

Growing or continuing ineffectiveness of law and order and difficulty in

enforcing regulations.

DPs do not join the EISP as the GoT directs donors away from the EMA

implementation towards other priorities and/or accepts other modalities for

support

In addition, although not directly associated with the implementation of EMA there is

a risk that SUALDWC will lead to forced resettlement if the relevant laws and

procedures are not kept to.

The main risk associated with the PFM Component is that the transaction costs of

engagement in PFM are high, making more unsustainable forest management more

attractive. When benefits take a long time to materialise, participating communities

lose interest, and while illegal logging is not effectively curbed, this becomes an

attractive option. The Independent Forest Monitoring, to be initiated jointly between

GoT and DPs, will aim at limiting and preventing illegal logging, thus make that less

attractive. At the same time the PFM programme will counter the risks through

constant feeding of lessons learned into guidelines in order to speed up

implementation and by broad awareness creation.

4.4 Outcomes

The medium-term outcomes for the three ESPS components are anticipated to be:

EMA

An enabling framework for EMA implementation – i.a. through policy

harmonisation, planning, environmental assessments, enforcement, reporting,

and awareness creation – has been created that significantly improves

environmental management in Tanzania;

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MDAs and LGAs have significantly improved their environmental

management capacity resulting in quantifiable improvements in the state of

environment in Tanzania.

UDEM

A national level enabling environment for urban development and

environmental management with an UMDP in place, harmonised legislation,

guidelines, and national level capacity to support urban LGAs;

Institutionalised training and backstopping services, from relevant MDAs, that

on a continuing basis, develop corporate and individual competence for MDA

and LGA staff, based on their demands, in support of UDEM implementation;

A local level enabling environment in urban LGAs with established

procedures for urban planning, development and environmental management

and associated capacity and local level coordination mechanisms;

Improved urban land management and planning that amongst others addresses

the needs of the unplanned areas, leading to improved environmental

infrastructure and services that contribute to a healthier urban environment in

the planned areas as well as in the unplanned areas – generally benefiting

urban citizens (and in some cases rural areas and populations).

PFM

The national enabling framework has been enhanced resulting in faster rollout

of PFM to existing and new districts.

The area under PFM has increased and sustainable management of the forest

areas has been improved.

Socio-economic benefits have been provided to the participating communities

resulting in improved livelihoods.

PFM conducted in line with good governance principles

4.5 Capacity building approach

The Danish support to the environment aims to build up capacity to implement EMA

and to implement the UDEM. The key characteristics of the capacity building

approach are summarised below:

Capacity development is acknowledged to be dependent on a very wide range

of political, institutional and other factors relating civil service performance

e.g. pay reform. In the terminology of some capacity building approaches the

so-called external and political dimensions as opposed to the internal and

functional/ rational dimensions.

The approach takes account but does not attempt to duplicate the ongoing

efforts to improve the capacity development environment for LGAs and

MDAs through a variety of programs including the LGRP and the

implementation of the public service regulations of 2003 amongst others.

These efforts can be termed as “sector relevant” capacity building. It is

appropriate that the EISP and UDEM frameworks acknowledges the existence

and primacy of these wider sector relevant efforts and coordinates with them

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56

but it is not appropriate that the EISP and UDEM are the channel for delivery

as there are other better placed efforts for meeting these complex challenges.

The EISP and UDEM will focuses their work on the “sector specific” capacity

building challenge i.e. on building that technical and functional capacity which

is highly specific to the implementation of EMA and UDEM

A phased approach will adopted in order to build a strong foundation for the

future. Within EMA, the initial focus is on i) DoE and NEMC and ii) a limited

range of MDAs. Once capacity is built in the MDAs, the MDAs themselves

will cascade capacity building down towards the LGAs. Within UDEM the

initial focus will be on the LGAs that are able to meet the demanding criteria

of the CDGs and on establishing a network of capacity builders who are able

to meet the demands of LGAs who have access to the capacity building grants.

A demand responsive approach is adopted whereby it is recognized that not all

MDAs/ LGAs will be equally responsive. In some MDAs/LGAs there will be

processes such as restructuring or senior management changes that could

accelerate the implementation of EMA/ UDEM and in other cases delay it.

The EMA/ UDEM frameworks have to be ready to respond to opportunities

for change whenever they occur.

The approach will be to mobilize internal resources in the MDAs an LGAs

and to work closely with top management as well as the personnel and finance

function to ensure that the necessary support in terms of resources for the

environmental function are made available. Within EMA, a key part of this

strategy will be to assist in the strengthening of the environmental sections and

the development of an internally generated environmental action plan that is

MDA specific.

To emphasize the internal and MDA driven capacity building approach, the

funds from the EISP and UDEM basket funds will be made available directly

to the MDAs through their MTEFs.

Specifically for the UDEM framework:

The capacity building is learner and demand led and based on the already

functioning LGA CBG system which provides on certain pre-conditions funds

which LGAs can access to pay for capacity building of their choice.

A guided market based approach is adopted whereby the demand from LGAs

is met by the supply available from anchor institutions that are capable of

providing the capacity development services needed in a client- provider

framework.

One of the market “guides” is that the pre-conditions for accessing the CBGs

are aimed at directing the funds only towards those LGAs where the “sector

relevant” capacity is already sufficiently well established that they gain from

“sector specific” capacity development. That is, dysfunctional LGAs are

excluded as they are not ready and cannot make use of the type of technical

training that is delivered through the UDEM framework.

It is acknowledged that even with the presence of money backed demand from

the LGAs in the shape of the CBG that this market based mechanism may not

happen by itself and will need to be stimulated.

The role of PMO-RALG is to ensure that market based mechanisms emerge

on the supply side, based on light encouragement, provision of quality control,

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training of trainers and seed funds that can be accessed by all reasonably

viable institutions and capacity building enterprises.

The PMO-RALG and the MDAs themselves need capacity building in order to

fufill their role and this is one of the tasks of the long term Technical Assistant

(TA). The TA is also available to provide support to the anchor institutions.

The anchor institutions will themselves also be able to offer capacity building

to the MDAs in specialist areas.

The seed money to assist the supply side (anchor institutions) and also the

quality control and Training of Trainers (ToT) function will come from a

common basket fund.

Finally there is a feedback loop between the LGAs and the MDAs.

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5. COMPONENT OUTLINES

5.1 EMA Implementation Support Programme

National framework

Since the enactment of EMA in 2005, progress has been slow in establishing

environment sections in sector ministries, although some already have focal points,

and units that undertake similar tasks etc. A detailed overview is given in Annex F of

the component description. None of the sector ministries have prepared Environment

Action Plans. However, some MDAs are conducting EIAs (energy, mining, roads,

industry and tourism) in line with their adopted procedures. SEAs have not yet been

conducted in accordance with Act, while some SEAs took place before the Act came

into force. Few MDAs carry out compliance inspections, except for the health, mining

and industry sectors. Violations of EMA have naturally not been prosecuted. Sector

ministries have not produced Sector State of Environment Reports, but VPO is in the

process of preparing the national version. There has been limited progress in

harmonising policies, legislation and regulations except for a few MDAs (energy,

minerals and roads) in line with their procedures. Generally, there are low levels of

awareness and internalisation of EMA in sector ministries – and much remains to be

done.

With a view to facilitate the implementation of EMA, VPO-DoE initiated the

formulation of the EISP. The EISP will have a first phase of five years starting from

July 2006. The EISP will prioritise MDAs as entry points, but will also address LGAs

through PMO-RALG. EISP is organised around the mandates provided in the Act.

The following selected EMA mandates are the focus in relation to: a) the national

environmental institutions, meaning DoE and NEMC; b) MDAs; and c) the PMO-

RALG system, including Regional Secretariats and LGAs:

Environment Policy and planning

Environmental Assessments (EIAs and SEAs)

Reporting, monitoring and enforcement

Environmental information, awareness, and research

These mandates are considered essential for the implementation of EMA and are also

considered a realistic starting point. The mandates represent specific functions, but

also institutional linkages, e.g. various institutions have various roles to play in the

conduct of EIAs and SEAs, and the implementation of this mandate requires

substantial inter-action and coordination. Other EMA mandates will be included as

the implementation progresses. Similarly, a number of Ministries have been

considered for the initial implementation, and more will follow.

The EISP should be seen as a framework for implementation of EMA, as the actual

activities by institutions to implement their mandates will be determined in annual

work plans and budgets, through the GoT planning and budgeting system. This

method is chosen, as it is rather difficult to determine up to 5 years in advance the

specific activities of specific institutions to implement EMA. EMA is a means of

mainstreaming the EMA application in the different sectors so that they can take

responsibility on their own shoulders.

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DoE has submitted a proposal to President‟s Office, Public Service Management (PO-

PSM) for the Division‟s restructuring so that it can meet its functional obligations to

implement EMA. DoE has, furthermore, requested the MDAs to establish

environment sections according to EMA‟s stipulations, which will greatly facilitate

the sector ministries‟ mainstreaming of environment into the policies, strategies and

functions. NEMC has reviewed its structure and is currently employing staff so that it

can effectively meet the EMA requirements.

The total DoE staff will rise from 37 in the three sections of the present structure to at

least 64 once the new structure is in place. This represents more than a doubling of

capacity.The total NEMC technical staff will be 85 (increase from 50 technical staff at

the present time) with a supporting staff of 39 and total staff of 124. This represents

a70% increase in staffing.

Development objective

State of Environment in Tanzania improved through implementation of EMA,

contributing to growth and income poverty reduction, social wellbeing, and improved

governance and accountability.

Immediate objectives

1. Coordination of environmental management in Tanzania improved.

2. Effective implementation of environmental mandates.

Strategy

A full implementation of EMA requires a multitude of outputs to be delivered by a

multitude of institutions. However, given the resource scarcity it is imperative that a

few, but strategic outputs are targeted to stimulate the EMA implementation among

the various actors. The Programme therefore adopts a phased approach in which

initially only key mandates are included (see above) and a limited number of sector

ministries will be targeted for support. The targeted ministries will be MDAs with

potential for major contributions to growth and poverty reduction, and MDAs with

potential for major impact on the environment, as well as those that implement the

SUALDWC:

Box 5.1: First batch of sectors/MDAs for EMA implementation

Industry, Trade and Marketing;

Agriculture, Food Security and Cooperatives

Natural Resources and Tourism

Water

Livestock

Lands, Housing and Human Settlements Development

Infrastructure Development

Labour and Youth Development

Health and Social Welfare

Education and Vocational Training

Home affairs

Energy and Mining

Coordinating ministries incl. President‟s Office Public

Service Management, PMO-RALG, VPO (DoE and NEMC)

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The EISP implementation will be informed by the lessons learned from implementing

capacity building in the past, as articulated in the Capacity Building Programme for

EMA (January 2006). The content and level of support to the respective MDAs will

be based on the situation facing the MDA, and they will themselves prepare proposals

for the assistance required under the EISP within the framework it provides.

Outputs

The outputs under the immediate objective 1 will primarily be produced by the

coordinating and overseeing environmental institutions, DoE and NEMC:

1.1 Policy and planning:

1.1.1 EMA associated regulations, standards, guidelines and manuals

prepared and disseminated to implementing institutions (some already

done, some underway);

1.1.2 NEAC established;

1.1.3 National Environment Fund established

1.2 EIAs and SEAs:

1.2.1 EIA and SEA experts registered, EIAs and SEAs reviewed and acted

upon; and Environmental audits conducted

1.3 Reporting, monitoring and enforcement:

1.3.1 Central Environmental Information System established and State of

the Environment Reports prepared and disseminated;

1.3.2 Environmental inspectors, Analysts, and Reference Analysts

designated/appointed;

1.3.3 Environment Appeals Tribunal established and functioning.

1.4 Information and awareness:

1.4.1 Awareness of EMA and Multilateral Environmental Agreements

amongst all stakeholders increased.

The outputs under the immediate objective 2 will primarily be implemented by

MDAs and at the local level through PMO-RALG:

2.1 Policy and planning:

2.1.1 EMA mandates specified and internalised within implementing

partners;

2.1.2 Environment sections and committees established (reviewed, where

they exist) in MDAs and LGAs

2.1.3 Sector specific and LGA environmental action plans/strategies

developed, implemented and monitored;

2.1.4 Sector legislation, policies, strategies, plans/strategies reviewed and

harmonised, and implemented where necessary.

2.2 EIAs and SEAs:

2.2.1 Sector specific EIA guidelines produced (reviewed if in place) and

implemented for approval;

2.2.2 Compliance inspections conducted;

2.2.3 SEAs of legislation, policies, strategies, plans and programmes

conducted and submitted for approval

2.3 Reporting, monitoring and enforcement:

2.3.1 Sector and LGA (consolidated report from PMO-RALG) State of

Environment reporting system established; and reports produced and

disseminated;

2.4 Information and awareness:

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2.4.1 Information on EMA and sector specific implications disseminated to

all stakeholders in respective sectors;

2.4.2 Information on EMA disseminated to regions, LGAs, wards, mtaas

and kitongojis.

Activities

The implementing institutions will propose output-related activities as part of their

three-year strategic planning and MTEF budgeting processes23. However, some

activities are known, as the outputs are closely linked to mandates in EMA. The

mandates are or will be expressed in regulations, which guide the actions to be taken.

For instance, the EIA mandates for the respective institutions are clear in EMA,

further detailed in the recent regulation, and MDAs will therefore have a clear picture

of the activities necessary to produce output 2.2.

The implementing institutions starting point is different e.g. some have environmental

sections and need to review these, others have to establish these sections from scratch.

The starting point will guide the identification of annual activities in the respective

institutions. An overview of the baseline of capacity has been developed during the

development of EISP.

Inputs

GoT inputs will comprise the involvement of its civil service in all matters required to

further develop and implement the EISP, including use of office space, etc. The costs

of setting up of environmental sections, remuneration of staff, will be borne by the

respective institutions. However, support can be provided under the EISP for

expansion of offices and for relevant equipment.

Danida and other development partner24 funds will be routed via a common EMA

basket fund and will go though the Exchequer System. EISP will also be financed by

project funding, both in the respective MDAs, which have existing project funding for

their Environmental activities, and in VPO, which have numerous projects touching

upon the EMA mandates.

Technical Assistance, long and short term, national and international, will be procured

freely by the implementing institutions, in line with the Government‟s procurement

rules. No long term Danida Technical Adviser is anticipated as part of this

component, however there will be a 1½ year on-going provision of TA amounting to

approximately 22 person weeks to be financed partly from programme management

as outlined in Annex C (inception period) and Annex E draft TOR (both annexes of

the EMA component description). The purpose of this TA is to assist with vital pre-

inception activities and to provide support during the inception phase not only for the

various analysis that are needed but also to build up management and other routines

that will increase the capacity of DoE to effectively manage the implementation of

EMA.

23

Please refer to Section 2.4 for further information. 24

No firm commitment has yet been made by other DPs.

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Institutions

As the EISP has national legislative, policy and development implications, EWG is

found to be the appropriate coordination forum for EISP, and it will function as the

steering committee with a corresponding mandate. This is in line with the expressed

intention to review the functioning of EWG, its mandate, composition, level of

representation, secretariat etc. Participating MDAs are already represented in the

EWG. A draft ToR for the reformed EWG is provided in the EISP component

description.

The executive agency will be the VPO, with a newly reformed structure and staffing

schedule. The DoE sections will undertake the necessary work corresponding to their

tasks and responsibilities. The DoE will also function as the Secretariat for the EWG

as regards the EISP, as they do now. NEMC will play a complementary role in line

with their enforcement mandate. MoF, PO-PSM, and PMO-RALG will undertake

supporting functions.

Crosscutting issues

The MDAs and LGAs are responsible for environment and gender mainstreaming, for

initiating efforts to respond to HIV/AIDS, and for good governance in their

institutions. The MDAs and LGAs have committees and staff dealing specifically

with environment, gender and HIV/AIDS interventions, which are incorporated in

their Strategic Plan and MTEF and which are subject to reporting and monitoring. If

the need for corrective measures, e.g. in the case of an EMA activity, arises, the

relevant focal points or sections will resolve what measures should be applied.

The implementation of government‟s new initiative to reduce environmental

degradation in threatened catchments (SUALDWC) will be a test of how good

governance is as there will be a need to balance environment requirements with

human welfare/rights and adherence to environmental laws as well as resettlement

laws.


The implementation of EMA will take place within existing government structures

and mandates, which will enhance sustainability significantly. Sustainability will

furthermore be promoted by ensuring that environment sections in MDAs are properly

established, staffed, equipped, and that environmental management functions are well

conceived – and not least that they continue to be well undertaken. Both DoE and

NEMC will have important overseeing roles – in accordance with EMA stipulation –

to ensure that MDAs and LGAs environmental management functions adhere to

EMA.

There will be considerable scope for replication, as the EMA implementation will be

undertaken in phases and batches. When all MDAs and LGAs have implemented the

initial requirements, there will be a need for continuing refinements of EMA

implementation. Best practice cases will be developed based on the positive

experience gained that will help inform future regulations and guidelines, and simple

procedures and systems.

5.2 UDEM Framework

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National framework

PMO-RALG initiated the preparation of the UDEM Framework with the intent to

address urban development challenges and provide much needed capital injections to

finance essential environmental infrastructure. The UDEM Framework will evolve

over time and accommodate changes in scope as the perception of the urban

development context expands. It is the intention that all government and donor

interventions in the field of urban management will be aligned to this framework. The

UDEM Framework comprises three components:

1. National Level Component

National Policy and Legal Framework

National Level Capacity Building

2. LGA Level Capacity Building Component

3. UDEM Funding Framework

Component 1 is concerned with development of the UDMP, updating and

harmonisation of legal provisions relating to urban affairs, and capacity building of

participating national MDAs in order to create an enabling framework for

urbanisation in Tanzania25. Component 2 is concerned with capacity building of urban

LGA staff in order to implement the UDEM Framework in the urban centres.

Component 3 is concerned with provision of funds to urban LGAs for investments in

urban infrastructure and services.

Two UDEM grants will be created: the UDEM CBG, which will be USD 25,000

annually for Cities, Municipalities and Towns, USD 12,000 for Townships, and USD

10,000 for minor settlements; and the UDEM Capital Grant (UDEMG), which will be

based on USD 1.0 per capita26. The UDEM CBG and the UDEMG will be integrated

into the existing LGA grant system as a specific additional facility for urban LGAs.

The LGA grant system already comprises the CBG and the LGCDG27.

The criteria for accessing the UDEM CBG will be similar to that of CBG, i.e. that the

LGAs have developed a capacity development plan. The guidelines for preparing a

capacity development plan is amongst others provided in LGA Capacity Building

Planning guidelines, which will be updated to capture the specific capacity needs of

UDEM. The capacity building grants are intended to assist LGAs in qualifying for the

capital development grants – and thus provide an incentive to do so – but also to

increase the management capacity on an ongoing basis. The minimum conditions for

accessing the UDEMG are:

1. The LGA should have qualified for the LGCDG;

2. Availability of officer responsible for coordination of urban environmental

management issues, which also is related to the EMA requirement of appointment

of an Environmental Officer at LGA level;

3. Availability of Council Plan and budget lines covering all UDEM activities.

25

See the UDEM component description for elaboration on the various views on urban policies,

legislation, and guidelines 26

The capita ceiling has been set for the UDEMG, based on previous experiences, for what the urban

LGAs realistically can absorb and in order to ensure that all eligible LGAs can access funds. 27

For further information on CBG and LGCDG please refer to Section 2.4 .

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The UDEMG will be distributed to those urban LGAs that qualify according to a

formula28: population weight 70%; and poverty weight 30%. All formal urban LGAs

(Cities, Municipalities, and Towns) will be eligible to access the UDEMG, while

Townships can be included subject to the availability of funds, and minor settlements

will probably not be included in the initial period.

Like the LGCDG, the urban communities that benefit from the UDEM investments

shall provide a minimum cash and in-kind contribution corresponding to 5% and 10%

respectively of the investment. The LGCDG‟s requirement that at least 50% of the

grant should be spent on lower levels of local governments (wards and mtaas) will

also apply to the UDEMG. Like the LGCDG, the servicing costs – up to 15% - for

preparing, appraising and supervising the investments, will be covered from UDEMG.

The eligible investments under the UDEMG Framework are indicated in the Box 5.2.

The UDEMG can only be spent on eligible UDEM investments.

Box 5.2: Eligible UDEM investments

Solid waste management

Liquid waste management

Sanitation

Water supply

Stormwater drainage and erosion protection

Urban agriculture

Urban greening and management of open spaces

Upgrading of unplanned settlements

Urban transportation

Managing petty/informal trading

Alternative energy sources

Urban pollution (air, land and water)

Employment creation/ income generation

Cleaner Production Technologies

Managing extraction of building materials

Law and Order (e.g. street lights, police posts, etc.)

Source: PMO-RALG

Urban LGAs can qualify for the UDEM CBG and the UDEMG on an annual basis.

The performance assessment of the LGAs‟ use of the UDEMG will be fully

incorporated into the LGCDG performance assessment routines and have the same

reward/ sanction consequences, while a few UDEM criteria will be added. The

performance measures29 are qualitative and seek to evaluate the performance of the

LGA in key functional areas and compliance with policy guidelines on governance,

participatory planning, pro-poor budgeting, project implementation, etc. – with a view

to improving service delivery (see Table 5.1). Work is in general continuing on the

refinement of the performance criteria, and a criteria on the adoption of EIAs in LGA

planning and design of projects is proposed. The LGCDG annual allocation will be

adjusted based on the performance either upwards or downwards.

28

This formula is almost identical to the LGCDG except that it excludes the size of the land area, as it

is assessed to have less relevance in urban centres. 29 PMO-RALG. Manual for the Assessing of Councils against Minimum Access Conditions and

Performance Measurement Criteria, November 2004

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Table 5.1: Performance measurement and scoring system

Functional Area

Total Score

Minimum score

below which a

penalty applies

Minimum score to

receive

performance

bonus

A. Financial Management 10 5 7

B. Fiscal Capacity 15 7 12

C. Development Planning 20 10 14

D. Transparency and Accountability 10 4 8

E. Interaction with LLG 10 4 4

F. Human Resources Development 10 4 8

G. Procurement 10 5 7

H. Project Implementation 10 4 7

I. Council Functional Processes 5 2 3

Total 100 51 70

Source: PMO-RALG

The UDEM Framework has the following additional performance criteria:

Table 5.2 : Performance Measures for the UDEM Grant Functional Area Indicators For Performance

Measures

Source of Information & Assessment

Procedures

A) Environmental

Profile

Existence of Environmental Profile

prepared according to the

guidelines provided by PMO-

RALG

Inspection of LGA records and documents

for physical evidence of both the process

and outputs.

B) Participatory

Implementation

of UDEM

Evidence of UDEM activities

implemented with stakeholder

participation through the EPM

process

Physical inspection of LGA records for

minutes, reports, budgets and other

documents; interviews with key personnel

in LGA area, PMO-RALG, etc and

evidence of activities in the previous

Financial Year

B) Establishment

of EMIS

Existence of an operational

Environmental Management

Information System supporting the

implementation of UDEM

established and operated according

to guidelines provided by PMO-

RALG

Check LGA for WG & Council activities

supported by the EMIS, Look for physical

evidence of operational EMIS

hard/software infrastructure, interviews

with stakeholders & PMO-RALG.

I) Strategic Urban

Development Plan

(SUDP)

Number of steps accomplished of

the SUDP preparation process in

compliance with national

guidelines provided through PMO-

RALG.

Inspection of LGA records to review

reports, proceedings, minutes, products,

maps, documents. Interviews with key

stakeholders, technocrats, relevant GoT

institutions.

Source: PMO-RALG

.

Development objective

Improved living conditions of the urban communities in Tanzania by facilitating

decentralised implementation and monitoring of sustainable urban development and

environmental management in the Local Government Authorities sector.

Immediate Objectives

4) To provide coordinated financial and technical assistance to relevant LGA sector

institutions at the national and regional levels to create an enabling atmosphere for

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implementation and monitoring of urban development and environmental

management activities at the local levels through a supportive legal and policy

framework;

5) To provide nationally compatible assistance for the effective management of the

supply and demand sides of capacity building of relevant stakeholders at both

national and urban local government levels to facilitate the implementation of

local level UDEM initiatives;

6) To provide financing to national and local level LGA sector institutions to

operationalise a UDEM supportive national Local Government sector and enable

the LGAs to make investments in improved urban development and

environmental management through nationally compatible intergovernmental

transfers.

These Immediate Objectives are more or less associated with the respective

components, and their objectives, of the UDEM Framework.

Strategy

The strategic directions that emerge from the diagnosis and the analytical work in

developing the UDEM Framework are:

Anchoring of the UDEM Framework in the pro-poor policy directions of

MKUKUTA.

Integrate the UDEM Framework into the LGRP initiatives so that it both gains and

contributes from the advances made in the local government restructuring process

– in particular relating to governance, accountability and revenue enhancement.

Link the efforts of all relevant national anchor institutions in a single one-stop

policy coordination platform to improve consistency and simplify LGAs‟ access

to national support services.

Provide a demand driven and client responsive mechanism and culture for LGAs

to access national support services;

Establish a long term reliable and sustainable central transfer fund mechanism for

investments in urban LGAs and enhance LGAs‟ funding of O&M, and for

establishment of routine duties at national level, and accept short term or

temporary financing or contribution towards initiatives that only need to be done

once.

Develop flexibility through use of feedback and learning mechanisms loops,

horizontally between the national anchor institutions, and vertically between the

national level and the local level.

Develop a realistic balance between what can be achieved by new policies and

guidelines and what is dependent on the strength of implementation and

enforcement action.

Outputs

The outputs are listed below:

Component/ sub

component

Outputs



Policy and Legal Framework

Output 1: Framework consolidated through – insertion of the

framework in MTEFs & pre studies for the UDMP

Output 2: Existing laws, guidelines and strategies harmonised

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Component/ sub

component

Outputs

Output 3: UDMP developed

Output 4: sustainable long term responsiveness to LGAs operational



Level Capacity Building

Output 1: Capacity of national level institutions to serve LGAs for

UDEM enhanced

Output 2: Platform to coordinate and enhance all national efforts

strengthened and operational

LGA Level Capacity

Building Component

Output 1: CBG for UDEM established and operational

Output 2: Improved implementation of UDEM activities in LGAs‟

through increased capacity for using the EPM process

UDEM Funding Framework

Output 1: National level CBF established and operational

Output 2: UDEM CDG established and operational

Output 3: Utilisation of other sources of funds for UDEM activities

promoted

Activities

National level activities: The main thrust of the national level activities will be on

creating a coherent framework for urban development and environmental

management - comprising a new policy and harmonisation of existing policies;

guidelines, best practice documents etc. and financial transfer functions, both in the

form of supportive services to the LGAs. Capacity building activities will take place

at national level in line with the respective institutions‟ mandates, and capacity

building services will be developed to be supplied to the LGA on a demand basis.

The local level activities are a little less easy to outline in detail, as the volume of

activities will depend on the number of urban LGAs qualifying, and the content of the

activities will depend on the LGAs, as they have large discretionary powers over the

funds, in line with the nature of LGCDG and LGCBG. Some certainties exist, as the

UDEM Framework includes earmarking and incentives for certain performance:

LGAs will appoint Environmental Officers and focal point for UDEM coordination;

LGAs will plan and implement UDEM activities and investments within the field of

areas provided in box 2.3; LGAs will plan and prepare and/or update, and implement

Capacity Building Plans, which includes UDEM aspects; LGAs will plan and prepare

and/or update Environmental Profiles; LGAs will initiate EPM processes; LGAs will

establish EMIS; LGAs will initiate strategic urban planning; and LGAs will conduct

EIAs on their investments. All of these are access or performance criteria, general or

specific for the UDEM Framework. It is important to note that under the

LGCDG/UDEMG system, investments are part of the GoT strategic planning and

budgeting process. The technical design of physical investment projects is done at the

LGA level. The project designs are appraised and quality assured by the LGAs.

Inputs

GoT inputs will comprise the involvement of its civil service in all matters required to

further develop and implement the UDEM Framework, and include use of office

space etc. GoT will, furthermore, undertake performance assessment and financial

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management in accordance with the established CBG, LGCDG and MTEF procedures

as amended to incorporate the UDEM CBG and UDEMG.

Urban LGAs will correspondingly utilise their staff to undertake the necessary work

to qualify for the UDEM CBG and UDEMG, to undergo training, and to manage

investment projects. The urban LGAs will also provide the necessary Operation and

Maintenance (O&M) costs and staff to sustain the investment costs from their own

revenues.

Development partners30 (Danida, Swedish International Development assistance

(Sida), WB, UN-Habitat) will contribute to implementation of UDEM‟s three

components. The DP funds can be earmarked to the UDEM National Component and

LGA Components in compliance with the UDEM budget, but a basket will be

established for those who wish to contribute to the whole UDEM Framework.

Technical assistance will be required both to support the MDAs in implementing and

further developing the UDEM Framework and to support urban LGAs in planning,

implementation, operation and maintenance of UDEM investments. The TA will be

short and long term, national and international, and be procured by the respective

institutions in line with GoT procurement procedures. However, a Danida long term

adviser will be provided for the first two years.

Institutions

The urban LGAs comprise Cities (5), Municipalities (17), Towns (4), and Townships

(78). Some of the Municipalities form part of Cities, e.g. three municipalities

constitute Dar es Salaam City. The Townships are District headquarters that have their

own councils, but are not budgetary autonomous. The urban LGAs will meet

regularly, as they do today, in semi-annual fora, facilitated by PMO-RALG.

The executive institution at central level is PMO-RALG, in which five divisions will

be involved in the UDEM activities: Division of Local Government (DLG), Division

of Policy and Planning (DPP), Division of Sector Coordination (DSC), Division for

Legal Services (DLS), and Division of Information Management Systems (DIMS).

The Environment Section in DSC coordinates the implementation of the UDEM

Framework and will act as secretariat to the UDEM Steering Committee, which will

be established. Other core institutions are DoE and NEMC of the VPO; and Ministry

of Lands, Housing and Human Settlement Development (MLHHSD), which will be

involved with its Mapping & Surveys Division (MSD), Human Settlement Division

(HSD), and Land Development Services (LDS). A division of labour has been agreed.

The LGRP –under the auspices of PMO-RALG – will also play an essential role in

implementing the UDEM Framework. The LGCDG Steering Committee and

Technical Committee will play a specific role in relation to the grants.

Crosscutting issues

The LGAs are responsible for environment and gender mainstreaming, for initiating

efforts to respond to HIV/AIDS, and for governance in their councils, and similarly

the MDAs are responsible in their fields for these areas. The LGAs, like the MDAs,

have committees and staff dealing specifically with environment, gender and

30

Only Danida has at this point in time declared its full commitment

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HIV/AIDS interventions, which are incorporated in their Strategic Plan and MTEF

and which are subject to reporting and monitoring. If the need for corrective

measures, e.g. in the case of a UDEM investment, arises, the relevant focal points or

sections in LGAs will resolve what measures should be applied.


Regarding the local level activities, sustainability will be promoted by facilitating that

investment projects are properly conceived, relevant and well designed. Emphasis will

be placed on LGAs undertaking their own internal appraisal and approval procedures.

Sustainability will, furthermore, be promoted by developing and sustaining LGAs‟

corporate competence in urban planning, development and environmental

management.

Regarding the national level activities, sustainability will be enhanced by developing

a comprehensive long-term UDP that provides effective directions for urbanisation at

national and local levels; and integrating development interventions into GoT‟s

planning, budgeting, accounting and reporting systems.

There will be considerable scope for replication, as more LGA‟s qualify and as the

need for investment in urban LGAs is enormous. Best practice cases will continue to

be documented based on the positive experiences gained that will help inform

procedures and guidelines for new eligible LGAs wanting to access the UDEM grant.

The UDEM Framework should, according to Danida, be seen as a medium term

intervention, addressing the urban environmental challenges, which are not fully

accommodated in the current policy, capacity building, and investment frameworks.

The grants may at a later stage be fully integrated in the LGCDG and LGCBG. When

the policy is in place and institutional mandates for servicing LGAs in this field are

fulfilled, the need for a specific earmarked national level support may dissolve.

5.3 Support to the PFM Programme

The PFM framework context

Forests and woodlands in Tanzania cover 38.5 million ha. Forests and woodlands are

key elements in the livelihoods of hundreds of thousands of households across

Tanzania, as they provide a wide range of benefits both directly in the form of timber,

forage, fruits, charcoal, traditional medicines, and gums and resins; and indirectly

through their ecosystem functions including regulating water catchments, erosion

control, nutrient cycling, maintaining local climates, and in supporting the Tanzania‟s

rich biodiversity. Despite their importance, about two-thirds of the forests and

woodlands are currently unreserved and lack effective management – causing

forestland to be further degraded and deforested.

The new executive agency, the TFS is in a long-term process of being established.

TheFBD of MNRT is the national agency responsible for policy and regulatory

functions. FBD still has considerable implementation responsibilities (not least for the

plantations), which eventually will be handed over to TFS. Technical capacity at all

levels is generally inadequate, particularly in land-use planning, forest management

systems, business and financial management, participatory development, resource

valuation, Monitoring and Evaluation (M&E) and data management.

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Today, the total area of forest reserves managed by central government and LGAs is

13.8 million ha, of which 1.6 million ha is managed jointly by government and

villages (JFM). Of the 19 million ha of unreserved forests land, only 2.1 million ha is

under village management (Community Based Forest Management – CBFM). The

PFM encompasses JFM and CBFM. PFM is a key strategy to realise sustainable and

equitable forestry in Tanzania. PFM offers important potential to improve

management performance in all forest types and to realise improved livelihood

benefits to communities living adjacent to the forests. This is also the intention behind

making people‟s participation the key strategy in NFP. Furthermore, PFM is in line

with the general political and economic direction of Tanzania, including the reform

processes. The PFM concept is therefore gaining momentum in Tanzania and is

widely recognised as an effective means of protecting and rehabilitating forest areas

while at the same time improving the livelihood conditions for communities engaged

in PFM.

Until recently PFM has largely been driven by externally funded and facilitated

projects. The project approach applied for PFM implementation has generally resulted

in concentrated funding in a single area, external advisers, parallel structures, high

levels of expectations, and complex field processes that are beyond the reach of local

institutions. While many projects have developed new innovative approaches to PFM,

the challenge is to transform these processes into low cost models that can be

replicated nationwide under varied conditions.

Moving away from the project based approach towards one that builds upon GoT

structures and systems requires time, persistence and a change in mindset of both DPs

and government. Significant challenges remain with regard to developing LGA staff‟s

capacity to a level where they can respond to PFM demands from rural communities.

District staff interaction with external service providers remains limited, as there is

some ambivalence and lack of knowledge among District staff on how to outsource

and engage civil society and private sector. This interaction could otherwise have the

potential to augment the Districts‟ technical and extension capacity.

The Danida PFM Component

The Danida PFM Component was launched in June 2003 and was planned for a five-

year period. Component implementation, however, encountered difficulties caused by

a number of constraints in the forest sector and the conceived implementation

modality. The Danida PFM Component was contrary to earlier more parallel

structures projects, building on the government planning, management and budgeting

systems, amongst others to adopt more low cost approaches. This transformation

process has been difficult and caused delays compared to the Component‟s original

targets and disbursement rates. The component implementation period has

subsequently been extended to June 2009 with the same budget allocation as

originally provided, but with adjusted annual budgets (see Annex D). An additional

budget provision will be allocated in ESPS to enable the PFM Component to continue

for the entire ESPS period (until June 2012) to ensure further consolidation of the

PFM concept and to allow rollout to other Districts having a potential for PFM

activities. It is estimated that by the end of the current phase, it will still be a national

programme in the making. Hence, inclusion in the ESPS is a high priority.

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71

The Component Document, October 2002 will, however, continue to provide the

framework for implementation until June 2009 – although a number of changes have

occurred as regards the implementation arrangements - in order to ensure consistency

with the evolving local governance framework. Most significant among these changes

is the decision to transfer responsibility for planning and reporting, including financial

administration, to PMO-RALG, Dodoma. This leaves FBD with more resources to

focus on monitoring, policy guidance and technical support, in line with central

government mandates in relation to the decentralisation by devolution policy. The

objectives and outputs will remain unchanged as presented below.

The development objective is: Improved and sustainable management of Tanzania‟s

diverse forests and woodlands resources contributing to the maintenance and

development of sustainable livelihoods especially among the poor rural communities.

The immediate objectives are: 1) A national framework for PFM under

implementation; and 2) PFM developed and operational in selected districts in four

regions.

The outputs are:

1.1 A national framework for PFM implementation developed and

institutionalised.

1.2 Applied research and development to facilitate PFM supported.

1.3 National PFM monitoring system developed and dovetailed to Poverty

Monitoring Master Plan, NFP and LGRP.

1.4 Manual of PFM „best practices‟ based on simple and practical handbooks

developed and published.

2.1 Local Government Authority human resources capacity and financial

ability to support PFM enhanced.

2.2 Village, sub-village and user group committees promoted and strengthened

to support implementation of PFM.

2.3 PFM plans in selected districts developed and under implementation.

2.4 Private forestry initiatives enhanced.

Danida remains active in the designated four Regions: Mbeya, Iringa, Morogoro and

Lindi. To date, PFM initiatives funded by Danida are supporting a total of 208

villages, covering a total of 540,000 hectares of forests and woodlands. This includes

both JFM arrangements in government forest reserves and CBFM in village lands. In

general it is estimated that approximately 1800 villages are involved in PFM, and less

than 1/3 have approved and signed Joint Management Agreements. The Danida

supported villages are also at various stages of establishing PFM arrangements.


Sustainability within the PFM component will be promoted by use of participatory

approaches that will increase the effectiveness of collective action and that respond to

the core interests of the communities in the vicinity of forest areas. Sustainability is

further enhanced by improved regulation from the public sector. Replicability is

enhanced by the emerging sector wide approaches which will allow unimpeded

transfer of good demonstrations throughout the country.

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72

DP involvement in PFM interventions

It is FBD, which in January 2003 initiated the five-year PFM Programme. The

Programme is not only funded by Danida, but also by GoT, WB (as part of their

Tanzanian Forest Conservation and Management Programme - TFCMP), Ministry of

Foreign Affairs (MFA)-Finland. The additional funding from MFA-Finland and WB

has created new opportunities, but has also stretched the limited capacity of FBD to

provide leadership and coordination. Despite the increased cooperation between DPs,

there remains a need for DPs and GoT to commit to a common Logical Framework

Approach (LFA).

Following extensive and prolonged negotiations between GoT and WB it was agreed

that funding for WB-supported PFM activities would not follow the models

developed by FBD and used by Danida and MFA-Finland, but would use the

mechanism developed under TASAF II. FBD was invited to take part in the design of

the TASAF II programme, and developed TASAF II forestry guidelines that included

aspects such as PFM, agro-forestry, tree nurseries, and other afforestation initiatives.

To date, no WB supported PFM activities have been initiated at village level.

FBD/MNRT, WB, MFA-Finland and Danida conducted a Joint Review of the PFM

Programme in June 2005. Some of the major findings were:

The programme is progressing satisfactory, but it is difficult to see the effect

yet, as many resources have been spent on establishing the general

implementation system. However, the programme has good potential for

achieving both the sustainable management of forest and livelihood

improvements. A word of caution was to not focus too much on the protection

aspect, and more on the production aspect.

There are substantial differences between the participating villages, both in

terms of socio-economic status, utilisation of forest products, natural resources

endowment, management capability, and the socio-political situation.

Moreover, the villages are not directly targeted, but only through facilitation

by Districts, and performance and demand is not properly assessed and

guiding the support;

The systems and structure for PFM interventions largely addressed the role of

GoT and to a lesser degree that of LGAs and local interactions. Still there were

capacity constraints on GoT side, at national and local level. There are

therefore further possibilities of addressing private sector development and

civil society involvement;

The Danish and Finish approaches were being harmonised and aligned with

GoT procedures. The IDA credit for PFM support is channelled through

TASAF, which has created confusion and coordination problems. The

facilitation of community level activities by District staff was not well

captured in the TASAF funding mechanism;

The NFP/forest sector SWAp was found to be complex and in need of strong

direction from MNRT/FBD, PMO-RALG and MoF. An alternative could be to

establish a PFM SWAp only.

The last bullet point above refers to the SWAp development. Key DPs, such as

German Technical Cooperation (GTZ), MFA-Finland, the Norwegian Agency of

Development Cooperation (Norad), Belgium, UNDP and Food and Agriculture

Organisation (FAO) and Danida have recently signed a Letter of Intent (LoI). It is

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73

anticipated that WB will also sign the (LoI). A SWAp Steering Committee has been

established and paved the way for a process towards formally establishment of the

forest sector SWAp with a MoU. The Director of the Policy and Planning Division

chair the Steering Committee and it has members from MoF, PMO-RALG, and active

DPs. The SWAp Steering Committee has replaced the NFP Steering Committee. The

forest sector SWAp could be operational in two to three years time. The SWAp will

pursue a forest sector basket fund and common objectives, work plans, budgets and

reviews. Funds from the forest sector basket will be routed to MDAs and to LGAs

through PMO-RALG.

The first annual NFP review was initiated this year, coinciding with Government

planning calendar. The review in 2008 or 2009 should be used to assess the PFM

Programme‟s performance, the intended rollout modality, the funding mechanism,

available budget commitments, and assess sustainability and replicability issues. This

joint review should undertake a thorough assessment of the continuation of the PFM

component and inform how the Danida funds for July 2009 – June 2012 should be

utilised. The decision on the funding modality will depend on various criteria,

including the extent to which the forest sector SWAp has matured and is functional

with a proper sector dialogue and planning and funding arrangements being in place,

and the likelihood and degree to which PFM will be prioritised as part of a NFP

basket. The illegal logging problems should also be addressed during the review.

PFM Scenario for June 2009

Refer to Annex D for the adjusted budget for the PFM component, which has been

used as a basis for the extension. The foreseen scenario for June 2009 is that the

forest/NFP SWAp is in place with PFM as a significant element, which will enable a

comprehensive rollout to the remaining eligible districts over the next three years

(also recommended by the joint review). The SWAp implies that the active

development partners engaged in PFM activities (Danida, MFA-Finland, WB and

potentially also Norad) route their assistance through MoF to FBD and LGAs

respectively and that DPs‟ interventions are harmonised and aligned to the NFP.

Furthermore, that all forest sector activities are coordinated through the national

SWAp Steering Committee. Overall monitoring of forest sector takes place through a

single forest sector monitoring process, established within FBD and building upon

local government monitoring processes, as well as the MKUKUTA monitoring

system. TFS will provide adequate services to the PFM implementation.

The PFM implementation modality is refined based on the experiences gained from

implementation in the selected districts (Danida 14 districts and Finish MFA 15

districts). PFM planning and facilitating capacity is improved at national level and in

those LGAs engaged in PFM activities. FBD‟s and LGAs‟ Strategic Plans and

MTEFs address PFM priorities adequately and the required recurrent and

development expenditures are contained in the respective MTEFs. The sector

planning and implementation process is informed by an annual NFP review, PER, and

by sector dialogue on prioritisations. Low-cost approaches are used for implementing

PFM – making it easier and faster (lowered transaction costs) for community groups

to embark on PFM activities, which in turn result in higher PFM natural resources and

socio-economic benefits. The private sector and civil society are increasingly

participating in PFM activities, either through mutually beneficial Public-Private

Partnerships, or through groups of service providers that are collaborating with local

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74

and national government institutions. A framework for co-ordinating and soliciting

forestry research under the NFP umbrella is operational across the sector. The forest

sector monitoring system generates nationwide information on PFM performance,

such as revenues generated and spent in communities, records of forest disturbance

etc. PFM contributions to the state of environment and environmental action plans for

the forest sector have been provided as per EMA‟s requirements.

Finally, an Independent Forest Monitoring System, established in a cooperation

between DPs and Government, helps to address destructive forest activities (e.g.

illegal logging), which in turn makes it more attractive for communities to undertake

PFM activities. Independent Forest Monitoring is under establishment, as a response

to the illegal logging scandals in the past years. The IFM will be operationalised

outside the context of the NFP SWAp (and PFM support), in order to ensure

independence of its activities, but contributing to the achievement of the goals of NFP

and PFM.

PFM Scenario for June 2012

The consolidation processes of implementing the PFM concept continues in

accordance with the evolution of the national NFP/PFM SWAp. The scenario by June

2012 is that the PFM concept is rolled out on a demand basis to most of the eligible

Districts in the country. Local PFM capacity is in place in those Districts targeted for

PFM support, which encompass District staff, village user groups, and civil society.

The area of forest and woodlands under different PFM regimes has increased

substantially. Due to improved PFM practices, both the local level benefits and the

accumulated national benefits are increased significantly. The PFM monitoring

system provides reliable information on PFM activities nationwide, which further

improves the planning and management of PFM activities at the national level as well

as the local level. Due to a well-consolidated national PFM Programme, DPs are

anticipated to provide continued support to PFM as part of the NFP SWAp beyond

2012.

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6. IMPLEMENTATION ARRANGEMENTS

GoT-DP MoUs regarding EISP, UDEM Framework, and NFP SWAp basket will be

developed, and they will include detailed specifications on management, on planning

and budgeting, on fund transfers, on procurement, on reporting and accounting, and

on auditing. This section is thus giving a preliminary presentation of the

implementation modalities. The table summarises the implementation arrangements,

which are further described in the specific component descriptions.

Table 6.1: Implementation Arrangements ESPS components Roles EMA UDEM PFM

Executing &

Coordinating

institution

VPO-DoE & NEMC PMO-RALG FBD, MNRT

Cooperating

Institutions

MDAs (selected) incl.

PMO-RALG

MLHSSD, VPO-NEMC,

LGAs

PMO-RALG, LGAs

Steering

Committee(s)

EWG UDEM Steering

Committee (SC), LGCDG

Steering Committee and

Technical Committee

PFM working group under

SWAp Steering Committee

Funding

mechanism

Basket Basket Continued component. After

2009 – basket

Funding

channel


treasury, release based

on EWG approved

work plans and budgets


treasury, release based on

SC approved work plans

and budgets (including for

the grants)

Disbursed to FBD and PMO-

RALG based on request, on

a grant basis. Manual

available

Planning

mechanism

Use of GoT planning


and aggregated work

plans and budgets,

based on respective

institutions‟ related

activities and budgets,

produced by VPO-DoE.

First year allowing

activities outside MTEF

Use of GoT planning



budgets, based on

respective institutions‟

related activities and

budgets, produced by

PMO-RALG

Use of GoT planning

mechanism– integration in

LGA development plans

Use of GoT planning



budgets, based on respective

institutions‟ related activities

and budgets, produced by

FBD.

Use of GoT planning

mechanism at local level as

well - integration in LGA

development plans

Reporting

mechanism




financial report, based

on respective

institutions reports,

produced by VPO-DoE






reports, produced by PMO-

RALG.

PMO-RALG also extracts

and aggregates LGA

reporting






reports, produced by FBD

Specific mechanism for

reporting from local level to

PFM working group.

TA Procured by respective


rules. First 1½ year

short term continous

TA procured by RDE,

from Programme

Management budget

Procured by respective


rules. Danida Technical

Adviser first 2 years

Services procured by FBD

using GoT rules, goods

procured through Crown

Agent, Danida Technical and

Financial Adviser - all until

2009. After 2009 – all

procurement by GoT

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6.1 Management and Organisation

The key national institutions for implementing the ESPS will be VPO-DoE, PMO-

RALG and MNRT-FBD, although a multitude of interactions will take place with

other MDAs and LGAs.

EISP will in its initial phase of implementation primarily interact with MDAs and to

some degree with LGAs through PMO-RALG. Similarly, the UDEM Framework will

also have interactions with a number of national agencies that influence urban

development and environmental management, and urban LGAs. The PFM component

will primarily continue interaction between MNRT-FBD, PMO-RALG, and LGAs.

All three components will in addition interact with communities, civil society, and the

private sector.

The three components of the ESPS have each their management structures and

coordination fora that function as steering committees with corresponding mandates.

The ESPS will thus not have a joint steering committee for the EMA, UDEM and

PFM components.

The EWG is the national level coordination body for environment concerned with

overall environmental policies and strategies. EWG will also serve as the steering

committee for EISP.

In the UDEM component, two linked fora will act as steering committees: Namely the

LGCDG steering committee and technical committee on the one hand, and on the

other hand, the UDEM Steering committee will be established. The LGCDG steering

committee and Technical Committee already exist, and will involve any new funding

windows such as the UDEM Frameworks, and contributing DPs will become

members. The UDEM steering Committee will partly build upon the current

Sustainable Cities National Programme Advisory Committee (NPAC), anchored in

PMO-RALG, but involving the other implementing MDAs, e.g. Ministry of Lands

and Human Settlement. NPAC will thus be dissolved. Contributing DPs will become

members. The two committees will naturally have linkages as shown in the UDEM

Component Document.

With the establishment of the SWAp Steering Committee, the current NFP Steering

Committee has been dissolved. The PFM component has been steered by a PFM

working Group under the NFP Steering Committee, but will now be anchored under

the new SWAp Steering Committee. Danida will be represented in both the committee

and /working group. Only very important issues will go to the SWAp Steering

Committee, while most will be dealt with at the working group level.

Technical assistance

The executing institutions will recruit long and short term, international and national

TA for the EMA and UDEM components and TA personnel will refer to their

respective Chief Executive Officers (CEOs). A Danida adviser will be recruited for

the first two years of the UDEM component. Furthermore, Short term continuous TA

for VPO to implement EISP will be procured through the Programme Management

budget line during a pre-inception and inception phase. As regards the PFM

Component, the two TAs will remain recruited by Danida until June 2009, after which

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date a SWAp arrangement is anticipated to be in place and potential recruitment of

TA will be undertaken by FBD. It is however important to note that the FBD already

recruit TA, in the form of short term consultancy services, jointly financed by Danida

and other DPs, using GoT procurement procedures. The current PFM advisers are also

acting as “pooled” advisers, advising not only Danida funded districts, but nation-

wide roll-out of PFM.

The TA arrangements are in line with the harmonisation and alignment envisaged in

JAS, which clearly indicates the wish by GoT to be able to freely procure and manage

TA. The TA arrangement constitutes a change from previous Danida support in the

environment sector, where one or more Danida advisers were recruited for each

project location e.g. Sustainable Cities projects, SIMMORS project etc. These

advisers have been phased out over the past years, and the current support is delivered

with Danida advisers building capacity in GoT to assist its own lower level

implementation units, e.g. LGAs etc. The TA arrangement is also in line with

Danida‟s TA policy.

6.2 Budget

The detailed EMA Programme and UDEM Framework budgets – coordinated and

prepared by DoE and PMO-RALG respectively – will constitute the framework for

GoT and DP budget allocations – and thus also for the ESPS budget.

The PFM Programme will continue to be implemented within the existing budget

frame for the first two years of ESPS implementation, as the implementation period

has been extended to June 2009. The PFM Programme will afterwards probably be

transformed to a similar budget regime as for EMA and UDEM, provided that a forest

SWAp materialises.

The ESPS budget is shown in Tables 6.1 to 6.2. The Danida PFM budget for July

2007 to June 2009 is funded under an existing appropriation and is thus not included

in the ESPS budget.

ESPS management budget line

The budget line for ESPS Management will be used to fund:

Denmarks leading role as a donor in the sector, incl. DPG-E activities

Danida‟s participation in joint GoT-DP reviews for the respective components,

The pre-inception and inception phase support inputs for the EISP

Technical studies as deemed relevant for managing the ESPS

Technical and financial audits as found necessary.

For the role as leading donor and funding of DPG-E activities, the main aim will be to

increase harmonisation and alignment in the sector and enhance quality of dialogue

by:

Supporting studies and consultancies e.g. joint studies related generally to the

environment sector or specifically to an environment sub-sector;

Supporting editing and publishing of joint materials; management of already

existing web-page etc.

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Supporting national or international events of significance for environmental

management in Tanzania e.g. annual retreats etc.

Experience has shown that there is a need for this type of funding, which is currently

being provided with difficulties on an ad hoc basis by various agencies. DPs are in

general satisfied with Danida‟s chair role, and are happy to see funds set aside for

DPG-E. Specific proposals for the use of funds will be endorsed by DPG-

Environment and Natural Resources in a meeting or by mail hearing, but funds are

released based on an approval by the RDE.

Unallocated funds

The unallocated budget will be used i.a. for:

Cooperation with civil society.

New activities in the existing components of the ESPS

For Civil Society, the main aim will be to improve the domestic accountability in the

sector. by strengthening of civil society‟s capacity and advocacy role. In line with

earlier mentioned observations on civil society, the funds will be available to i.a.:

Support strategic initiatives for capacity development of environmental CSOs and

networks to enhance their advocacy roles, e.g. seminars/courses, campaigns,

publications etc.

This will also complement the current service delivery role of civil society, which will

mainly be enhanced through the components.

For civil society, specific opportunities will be identified and developed and approved

by Danida and civil society on an on-going basis. No formal application procedure

will be installed, and proposals will be assessed on the basis of their merit

(strengthening of capacity and advocacy of civil society to improve domestic

accountability). The funding support will be directly to selected CSOs or to emerging

networks, and only the civil society organisation or network/coalition to receive

support will be involved in the approval. The final approval of proposals for use of

unallocated funds will be made by the Embassy of Denmark. GoT will be kept

informed about the use of funds.

Procedures for adjustment of budget between components

In the event that component budgets are not fully utilised – or likely not to be fully

utilised – funds can be transferred from one component budget to another, provided

that these can be properly absorbed. The component, which has the potential for

utilising additional funding, will need to document and justify that this is the case. Re-

allocations will be decided upon in an ad hoc meeting between the RDE, MoF, and

the component implementing institutions of VPO, PMO-RALG, MNRT, or in an

exchange of letters between these institutions. The meeting or exchange of letters will

be at PS and Ambassador level. Transfer of funds between components can take place

annually in connection with the budget preparations for the following financial year.

Summary of budgets

The overall budgets are summarised in the tables below:

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Table 6.2: ESPS budget by component (DKK million)

2007-08 2008-09 2009-10 2010-11 2011-12 Total

1 EMA Component 8 6.9 6.7 6.7 6.7 35

2 UDEM Component 20 20 20 20 20 100

3 PFM Component 0 0 6 6 6 18

4 ESPS Management 2.5 2 1.5 1.5 1.5 9

5 Unallocated Funds 2 4 5 6 1 18

32.5 32.9 39.2 40.2 35.2 180

Table 6.3: ESPS budget by component (TZS billion)

2007-08 2008-09 2009-10 2010-11 2011-12 Total

1 EMA Component 1.8 1.5 1.5 1.5 1.5 7.7

2 UDEM Component 4.4 4.4 4.4 4.4 4.4 21.9

3 PFM Component 0.0 0.0 1.3 1.3 1.3 3.9

4 ESPS Management 0.5 0.4 0.3 0.3 0.3 2.0

5 Unallocated Funds 0.4 0.9 1.1 1.3 0.2 3.9

7.1 7.2 8.6 8.8 7.7 39.5

exchange rate 1 dkk = 219 TZS

Total

Total

6.3 Financial Management, Planning and Procurement

Programme activities (EMA, UDEM and PFM) will be incorporated in the MDAs‟

and LGAs‟ annual planning and budgeting processes, which is explained in section

2.4, and will be undertaken in accordance with GoT procedures and planning cycles.

For EISP and UDEM Framework each implementing institution will identify the

relevant activities to be included in their annual plans and budgets in their MTEF. The

executing institution, meaning VPO-DoE and PMO-RALG, will prepare annual

aggregated budgets and work plans, based on the implementing institutions annual

plans and budgets. The aggregated plans and budgets will thus constitute extracts of

the MTEF, and will be submitted to the Steering Committees for endorsement. The

planning and budgeting in the PFM component is already expressed in manuals, incl.

a recently approved manual for district PFM funding, developed by MoF, PMO-

RALG, and FBD, and building upon the existing GoT system.

The Danida and other DP funds for EISP, UDEM and later on the PFM will be routed

through basket fund arrangements. In EISP and UDEM Framework, funds will be

provided by the DPs in semi-annual or annual instalments. Some DPs may wish to

earmark their funding, thereby not being part of an overall basket, e.g. WB main

interest is in the Urban Development Policy, and they may choose to fund that only.

The DPs will route their funds through the MoF Exchequer System, which enables

fund transfers to be recorded in the Integrated Financial Management System. The

DPs will indicate their funding commitments well in advance to ensure that budget

preparation can take place based on predictable DP contributions to allow MTEF

budget ceilings to be realistically set. Two routes of funding will be applied – both

aligned to the current GoT system:

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1. DP funds to MDAs (meaning mainly national level funding e.g. the national

level activities in UDEM Framework, EISP etc.) will be routed to a „satellite

account‟31 for each basket fund held by MoF/Treasury. Funds will be released

to the Exchequer based on the Steering Committees‟ approved work plan and

budget and integration of these into the executing institution‟s MTEF. The

executing institution will request a transfer to the MDA budget holders as per

their budget in their MTEF. As funding requests in the GoT financial

management system can be made quarterly, based on previous quarters‟

progress report and accounts, it is unlikely that funds will accumulate in the

MDAs. For the first year of EISP, activities may be approved by EWG, funds

channelled through the MoF/Treasury, but not inserted in the MTEF yet.

2. DP funds to LGAs (mainly to LGA activities in UDEM Framework) will be

routed to the respective satellite account held by MoF/Treasury. Funds will be

released to the LGAs based on approved budgets the LGCDG Steering

Committee, and PMO-RALG requests. In the event that LGAs under-spend,

the balance can be transferred to the next financial year, provided that it is

included in the budget for that year. This will be the case for project planned

to be implemented over more than one year, and where delays have occurred.

All funds will go to one account in the LGAs, but the LGA will in GoT budget

guidelines receive instructions about any earmarking. As LGAs have to

account quarterly for funds, similar to the MDAs, funds in 3rd

quarter will only

be transferred based on accounted expenditures in 1st quarter.

The executing institutions will issue aggregated quarterly and annual financial and

physical progress reports based on information from the Treasury and the MDAs. The

reports, constituting an extract of the MTEF reporting and accounting, will provide an

overview of total revenues by source and expenditures by MDA and LGA. These

aggregated reports will also be presented to the Steering Committees.

MDA and LGA financial officers will undertake the bookkeeping. GoT procurement,

accounting, auditing and performance assessment principles will be applied for each

MDA and LGA. The Auditor General undertakes independent external audits of the

respective MDAs and LGAs, and these reports will be presented to the Steering

Committees.

The quarterly and annual financial reports will be disseminated to DPs for individual

monitoring purposes, as they are all members of the Steering Committees. The DPs

will, on request, have access to information on all bank transactions, accounts and

auditing reports.

The DPs reserve the right to conduct comprehensive or partial audits and technical

reviews to assure that financial management and implementation processes and

outcomes are as anticipated.

6.4 Indicators

Existing monitoring systems for the EMA and UDEM

31

The term holding account is also applied.

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Monitoring of the ESPS will take place at 3 levels and use existing GoT monitoring

systems, which are summarised below:

Table 6.4 Existing monitoring systems

Level Existing monitoring system

EISP UDEM Objective/ outcome MKUKUTA

Output MTEF – annual and 3 year strategic level for each budget holding entity

Process EWG assessment CDG performance measures

Thus no new monitoring system will be set up for the ESPS and the EMA and UDEM

components, neither by the government nor by donors supporting the UDEM or EISP.

Outcome level indicators for EMA and UDEM

The outcomes will be monitored using the MKUKUTA indicators and monitoring

systems. The key indicators in MKUKUTA that relate to the EISP are shown in table

2.3 in an earlier section.

Specific target setting has been done in MKUKUTA, e.g. the target for households

with basic sanitation facilities is 95% by 2010.

The bi-annual SoE reports will be based upon an environmental information system,

where MDAs and LGAs deliver state of environment reports relating to their

jurisdiction. The first SoE report, recently made available, did not build upon such a

system, and therefore it did not include a fixed set of indicators to be used in the

future. However, in the long term the SoE reporting system can provide indicators that

can indicate quantifiable changes in the environmental conditions, and point at the

successfulness of EMA implementation.

Output level indicators for EMA and UDEM

The outputs will be monitored using the MTEF system. In the compiled and

consolidated progress reports, based on MTEFs, the indicators are included. These

are the targets to which the responsible budget holding entity (normally at directorate

level) is held accountable. The indicators have not yet been finalised for the MTEFs

for the period from 1 July 2007 but draft indicators that have been discussed and are

available for inspiration in the component descriptions.

Regarding EISP, the output indicators in the MTEF are likely to arise from the first

version of the environmental action plan to be produced during the first year

implementation. The indicators will thus be highly specific for each MDA

Process monitoring for EMA and UDEM

For the EMA component, the main mechanism for monitoring the processes will be

through the EWG. The EWG will hold monthly meetings, which will provide an

opportunity to qualitatively assess how well the process of implementing EMA is

proceeding and to monitor the validity of key assumptions. The DoE as the

coordinating body will prepare for the meetings and will ensure that relevant

information is available. Based on this and other available information the EWG will

be in a position to assess progress across the budget holding entities and thus establish

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an overview. Milestones have tentatively been developed in the EISP, which the

EWG can use. These milestones are not intended to duplicate or substitute the

MKUKUTA indicators but instead provide intermediary measures of how well the

process of EISP is progressing and to provide a departure point for common

understanding on the status of implementation and what if anything needs to be done

to accelerate or improve the quality of implementation.

For the UDEM component the process indicators are taken from the performance

criteria associated with access to capital development grants. The process indicators at

the individual LGA level are:

Preparation of Environmental Profile

Participatory Implementation of UDEM

Establishment of Environmental Management Information System (EMIS)

Strategic Urban Development Plan (SUDP)

For both components, the process level will monitor the progress regarding the

collaboration and cooperation among stakeholders, effectiveness and efficiency of

implementing ministries as well as compliance of the implementing ministries with

programme principles, resource utilization and accounting guidelines and reporting

(MTEF budgeting procedures).

PFM monitoring

FBD has initiated establishment of NFP indicators and a monitoring system, which

will contribute to the MMS. The indicator system will most likely include 10-15

indicators regarding PFM, relating to the 1) improvement of forest under PFM

arrangements, 2) benefits e.g. revenues from PFM and associated livelihood

improvements, and 3) forest governance (e.g. number of women in committees,

accountability of committees etc.). FBD is also regularly creating an overview of the

progress in PFM roll-out, e.g. number of villages involved in PFM, number of

villages with approved and signed agreements, hectares of forest covered by PFM etc.

These indicators are currently also used in the RDE‟s VPA reporting system. Like the

other components, PFM is also represented in the MMS e.g. household income from

natural resources, area under community based management etc.

Cross cutting indicators

The following indicators have been selected to monitor progress in cross cutting

issues.

Gender: “Number and proportion of Village Natural Resource/Environment/Forest

Committees with women in executive position”

Source: National Forest Programme Monitoring/Forest Sector Monitoring System

Link to ESPS: PFM Component

Governance: “Number of urban councils qualifying for LGCDG and UDEM grant –

amongst others based on criteria of financial management, fiscal capacity, planning

and budgeting, procurement, council functional process, project implementation,

monitoring and evaluation capacity, and capacity building”

Source: LGCDG Assessment

Link to ESPS: UDEM Component

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HIV-AIDS: “HIV prevalence among 15-24 olds” or “Number of persons with

advanced HIC infection receiving ARV combination therapy”

Source: MKUKUTA monitoring system (second indicator more reliable data)

Link to ESPS: None specific

6.5 Reporting and Review

Reporting

EISP and UDEM will follow standard government reporting procedures by

systematically using the existing reporting frameworks as shown below.

Table 5.6 Existing reporting system

Level Existing reporting system

PFM EISP UDEM Objective/

outcome

MKUKUTA

Output MTEF reports– annual and 3 year strategic level for each budget holding entity

Process SWAP steering

committee reporting

EWG assessment (minutes

of meeting)

CDG performance

measure reports

The MKUKUTA and MTEF reporting systems are well established, even if they do

not always yield timely high quality information.

The process reporting at the EWG and SWAP steering committee level (for PFM)

level will be more qualitative and will record the discussions and outcomes of the

meetings. If found relevant, special reports to investigate particular areas of delay or

concern could be commissioned by the EWG or PFM SWAp steering committee.

In some cases retreats or workshops might be relevant as a means of going into

greater depth on a particular process issue or opportunity e.g. peer to peer exchange of

information.

Reviews

Each component has their individual review mechanisms in place, where possible the

reviews will be planned to take place so that a “complete” ESPS review can be made.

If this is not possible a specific ESPS annual review will be needed that draws on the

reviews that have been made within UDEM, EISP, and PFM.

In the case of PFM, an annual NFP review process is under establishment. The first

review took place in February 2006, and covered all aspects of and funding to NFP.

As in the past, specific thematic reviews are to be conducted in relation to the NFP

review, e.g. a more detailed PFM review will be conducted in a similar manner.

In the case of the UDEM framework, LGCDG reviews are taking place quarterly with

LGA field trip observations feeding into Technical Committee meetings. This has

been installed due to a requirement by WB, and it functions relatively well in terms of

identification of key challenges to be addressed in the design of LGCDG, e.g.

adjustment of assessment criteria, management procedures etc. Joint review of the

national level activities of the UDEM framework can also take place, and will be

identified as part of the inception phase.

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84

In the EISP specific review mechanisms have not been outlined, EMA

implementation is reviewed in a number of other review processes, such as the PER,

the General Budget Support review process etc. A need for a specific Joint review can

be accommodated.

In Joint Reviews, focus will be on progress and constraints in implementation,

amongst others due to changes in the national frameworks, and how the

implementation should adapt to these constraints and changes. The thrust of the

reviews will be to make recommendations on possible adjustments. The timing of the

joint reviews will in all cases coincide with GoT‟s planning cycle, in order to inform

the future work plans and budgets. The Steering Committees will endorse the

recommendations of the joint review reports.

6.6 Implementation

The first phase of EMA implementation will – as mentioned – target selected sector

and line ministries and a selected part of EMA‟s mandates. The first phase will

include an inception phase of 1 year. A second phase will include: 1) remaining

ministries with a focus on the same mandates as for the first batch of ministries; 2) the

first batch of ministries with a focus on the remaining EMA mandates. Succeeding

phases can potentially be undertaken

The launching of the UDEM Framework has been initiated with an inception phase,

which is anticipated to last until June 2007. PMO-RALG will prepare the inception

report, which will give an account of all important issues related to planning,

implementation, financing, monitoring and reporting. UDEM activities will be

included in the central core institutions‟ strategic plans and MTEFs from FY 2007-08

and onwards. The intention is to launch UDEM investment during FY2007-08 in the

urban LGAs. Not all of the LGAs that qualify for the LGCDG may necessarily qualify

for the UDEMG. The first batch of urban LGAs will thus be relatively few and

constitute the relatively well performing LGAs.

The PFM Programme is implemented according to existing work plans and budgets in

the selected Regions and Districts. The implementation modality is now well aligned

with GoT procedures. It is anticipated that the targeted area-based funding focus will

be replaced by a SWAp modality from June 2009 – similar to those of EISP and the

UDEM Framework.

The three components constitute frameworks for prioritised interventions. The

detailed planning of interventions will be undertaken through the MDAs‟ and LGAs‟

three-year strategic planning processes and as such the detailed implementation plans

will evolve as an outcome of these planning processes. The executing institutions will

recommend (to the Steering Committees) the relative distribution of funding between

MDAs and LGAs – based on priority considerations and the receiving institutions‟

absorption capacity.

The executing institutions will coordinate with other related initiatives being

undertaken outside the programme frameworks to ensure complementarity and

synergies with these. The institutions will keep track of all related activities to the

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implementation of their respective programmes and will regularly provide a general

overview on progress and relations between the various interventions.

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ANNEX A: LIST OF REFERENCE DOCUMENTS

Danida documents related to its environmental support in Tanzania:

Danida/COWI. Expanded Debriefing Note: Assessment of Options for Civil

society Support within the ESPS in Tanzania, April 2006

Danida. Terms of Reference for Design of an Implementation Programme of the

Environmental Management Act, April 2006

Danida. Note on phasing in old commitments into the new Environment Sector

Programme Support (ESPS), Tanzania, 2007-2012, March 2006

Danida, Programme Committee Summary Note on Tanzania/ Environment SPS

2007-2011. February 2006

Danida. Concept Note: Tanzania/ Environment SPS 2007-2011, January 2006

Danida/ Finnida/ WB. Joint Review Report: Participatory Forestry Management

Programme, Tanzania, August 2005

Danida/PEM. Technical Review of Danida Support to Sustainable Cities

Programme, June 2005

Danida. Mid-term Review: Report, Sustainable and Integrated Management of the

Malagarasi-Muyovosi Ramsar Site, March 2005

Danida. Component Description: Sustainable Wetlands Management 2004 – 2009,

October 2003

Danida, Fact Finding Report: National Component, Urban Environmental

Management, March 2003

Danida. Component Document: Participatory Forest Management, October 2002

Danida. Tanzania, ESP Programme Document 2000-2003, March 2000

Danida/Darudec. Identification Report: Environmental and Disaster Relief Fund

Programme Support, July 1998

Danida documents of general relevance to the ESPS:

Danida. Good Practice Paper: Environmental Sector Programming, 2006

Danida. Draft Note on Country Strategy for Tanzania, March 2006

Danida. Programme Document: Support to macroeconomic and institutional

reforms in Tanzania, 2006

Danida. Guidelines for Programme Management, January 2006

Danida. Technical Note: Monitoring of Indicators for Environment and Natural

Resources Management, May 2005

Danida. Environmental Strategy: Strategy for Denmark‟s environmental

assistance to developing countries, August 2004

Danida. Country Strategy for Tanzania, January 2002

GoT Background documents for the preparation of ESPS:

GoT/PMO-RALG. Draft Framework Design, Volume II: National Framework for

Urban Development and Environmental Management (UDEM) in Tanzania, 13 &

29 June 2006;

GoT/PMO-RALG. National Framework for Urban Development and

Environmental Management (UDEM) in Tanzania: Version 5, Final Draft –

National Policy, Institutional and Capacity Building Component of the UDEM, 21

June 2006.

GoT/ VPO-DoE. EMA Implementation Support Programme, June 2006

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GoT/VPO-DoE. Main Report Volume I: EMA Implementation Programme, May

2006

GoT/PMO-RALG/MNRT. Draft Administrative and Financial Manual for

Participatory Forest Management for Local Government Authorities and Regional

Secretariats, May 2006

GoT/PMO-RALG. Volume II, Framework Design: National Framework for

Urban Development and Environmental Management in Local Government

Authorities in Tanzania, May 2006

GoT/PMO-RALG. Minutes of the National Programme Advisory Committee

Meeting Number 3 Held on 26th

May 2006

GoT/PMO-RALG. Options and Issues for LGA Financing modalities, May 2006

GoT/PMO-RALG. Draft Summary Design Report: National Framework for Urban

Development and Environmental Management (UDEM) in Tanzania, April 2006

GoT/PMO-RALG. Draft Background Analysis: National Framework for Urban

Development and Environmental Management (UDEM) in Local Government

Authorities in Tanzania, February 2006

GoT/VPO-DoE. Draft Needs Assessment Report Volume I: Capacity Building for

Implementation of EMA 2005-2010, January 2006

GoT/PMO-RALG. Summary of Proposed Framework: National Framework for

Urban Development and Environmental Management (UDEM) in Local

Government Authorities in Tanzania, January 2006

GoT/ VPO-DoE. Revised Third Draft: Capacity Building Programme for

Implementation of EMA 2005-2010, December 2005: Volume I, Needs

Assessment Report, Volume II.

GoT documents of relevance for the ESPS:

GoT/ LGCDG System Steering Committee: Third Meeting of the LGCDG System

Steering Committee, Agenda Item No 5: Approval of Assessment of Councils

Funding for 2006/07, June 2006

GoT/PMO-RALG. Support to the Local Government Capital Development Grant

System: Progress Report January to June 2006 and annual Budget July 2006 –

June 2007, June 2006

GoT/MNRT. Draft Report: Consultancy Service for Development, Establishment

and Institutionalisation of National Forest Programme Monitoring Facility and

Database, June 2006

GoT. JAST, Part II: Joint Country Analysis, Draft June 2006

GoT/PMO-RALG. Option and Issues for LGA Financing Modalities, May 2006

GoT. Statement by Hon, Prof. M. J. Mwandosya (MP) Minister of State

(Environment), Vice President‟s Office, at the Donor Group Coordination

Meeting on Environment, Pemba House, Dar Es Salaam, 25 April 2006

GoT/MPEE. Master Plan: MKUKUTA Monitoring System, April 2006

GoT/MPEE. Master Plan: MKUKUTA Monitoring System, March 2006

GoT. Joint Assistance Strategy, March 2006

GoT/MoF. Channelling of Project Funds through the Exchequer System, 2005

GoT. Poverty and Human Development Report, 2005

GoT. Briefs on Poverty and Human Development Report, 2005 - Status on

Poverty in Tanzania, Poverty at the District Level in Mainland Tanzania, and

Rural Growth and Poverty Reduction in Tanzania

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GoT. Working Document: Medium Term Strategic Planning and Budgeting

Manual, November 2005

GoT/VPO. The Development of Indicators of Poverty-Environment, October 2005

- Working Paper for Stakeholder Consultation Workshop

- Methodology sheets for proposed PMS and sector indicators for discussion at

stakeholder consultation workshop

GoT/MCDGC. National Strategy for Gender Development, September 2005

GoT/PO. Local Government Reform Programme: Medium Term Plan and Budget

July 2005 – June 2008, June 2005

GoT/VPO. National Strategy for Growth and Reduction of Poverty (NSGRP),

April 2005

GoT/PMO-RALG. Local Government Capital Development Grant System:

Manual for the Assessment of Councils against Minimum Access Conditions and

Performance Measurements Criteria, November 2004

GoT/PO. The functions and organisation structure of the President‟s Office –

Regional Administration and Local Government (PORALG), October 2004

GoT/ VPO. Public Expenditure Review of Environment, FY 2004, May 2004

GoT. The Environmental Act, 2004

GoT/PO. Rural Development Policy, December 2003

GoT/PMO/TACAIDS. National Multi-Sectoral Strategic Framework on

HIV/AIDS 2003-2007, January 2003

GoT/PMO. National Policy on HIV/AIDS, November 2001

GoT/MLHHSD. National Human Settlements Development Policy, January 2000

GoT/VPO. National Environmental Policy, December 1997

Development partner documents of relevance to the ESPS:

DPG-E. Summary of the DPG Mapping Exercise, July 2006

DP. JAST – Joint Development Partner Response, Draft June 2006

DP Group – Environment/Poverty Monitoring, 2006

DPG-E. Overview of current and future donor assistance, 2006

DPG-E. Natural Resources – Forest, Fisheries & Wildlife, 2006

IDA. Project Paper: Tanzania – Local Government Support Project, Additional

Financing, May 2006

DP-Poverty Monitoring Group. Poverty Brief – Tanzania, April 2006

EC/AFCo. Provision of Services in the Sector of Cooperation related to Lot 6:

Environment: Draft Report Tanzania – Country Environment Study, February

2006

WB/COWI. Study on Growth and Environment Links for Preparation of Country

Economic Memorandum, May 2005

Sida/Göteborg University/Swedbio. Tanzania – Environmental Policy Brief, June

2005

Sida et al. Study on changed focus for urban sector projects in Tanzania, January

2005

DP High Level Forum. Paris Declaration on Aid Effectiveness, April 2005

Other documents:

The Foundation for Civil Society. Logical Framework 2006-08, 2006

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Economic Intelligence Unit. Tanzania Country Report, March and June 2006

Economic Intelligence Unit. Tanzania Country Profile 2005, 2006

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ANNEX B: COMPONENT 1 ENVIRONMENTAL MANAGEMENT ACT

IMPLEMENTATION SUPPORT PROGRAMME

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ANNEX C: COMPONENT 2 URBAN DEVELOPMENT AND

ENVIRONMENTAL MANAGEMENT FRAMEWORK

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ANNEX D –COMPONENT 3 PFM INCL. BUDGET FOR EXTENSION

Reallocation of PFM budget to facilitate component extension from 01.07.2008 to 30.06.2009

Amounts in Mio. DKK Total 30.06.2008 30.06.2008 30.06.2009 30.06.2009 Repostings

Mio. DKK % FY 2007/8 Accumulated % Balance % FY 2008/9 Accumulated Balance at RDE

1. National PFM Framework 17.0 100 2.135 12.784 75 4.216 25 2.200 14.984 2.016 (2.016)

1.1 Service providers (contracts) and au 7.5 100 0.535 4.100 55 3.400 45 0.500 4.600 2.900 (2.900)

1.2 Equipment 2.0 100 0.200 1.534 77 0.466 23 0.300 1.834 0.166 (0.166)

1.3 Awareness Mat/Commm/Training 3.0 100 0.500 3.280 109 (0.280) -9 0.500 3.780 (0.780) 0.780

1.4 Collaborative Research Activities 3.0 100 0.600 2.400 80 0.600 20 0.600 3.000 0.000 0.000

1.5 NFP and EPU Operational costs 1.5 100 0.300 1.470 98 0.030 2 0.300 1.770 (0.270) 0.270

2. Implementation of PFM in the LGRP 24.0 100 6.450 20.160 84 3.840 16 6.300 26.460 (2.460) 2.460

2.1 Support to RAS 2.0 100 0.550 1.558 78 0.442 22 0.400 1.958 0.042 (0.042)

2.2 Support to Districts 4.0 100 0.300 3.664 92 0.336 8 0.300 3.964 0.036 (0.036)

2.3 District Operational costs 2.0 100 0.600 3.538 177 (1.538) -77 0.300 3.838 (1.838) 1.838

2.4 Investments in villages 6.0 100 2.000 4.200 70 1.800 30 2.300 6.500 (0.500) 0.500

2.5 Service Providers Cont. to villages 10.0 100 3.000 7.200 72 2.800 28 3.000 10.200 (0.200) 0.200

3. Technical Assistance 11.0 100 2.800 12.819 117 (1.819) -17 2.800 15.619 (4.619) 4.619

3.1 PFM Technical Adviser 3.5 100 0.900 4.528 129 (1.028) -29 0.900 5.428 (1.928) 1.928

3.2 PFM Financial Management Adviser 3.0 100 0.900 4.453 148 (1.453) -48 0.900 5.353 (2.353) 2.353

3.3 National financial mgt. asst. and audits 1.5 100 0.500 1.100 73 0.400 27 0.500 1.600 (0.100) 0.100

3.4 Operational expenses for advisers 1.0 100 0.100 0.735 74 0.265 27 0.100 0.835 0.165 (0.165)

3.5 Pool of internat./nat.short t. advisers 2.0 100 0.400 2.003 100 (0.003) 0 0.400 2.403 (0.403) 0.403

4. Contingency 5.5 100 0.437 8 5.063 92 0.437 5.063 (5.063)

TOTAL 57.5 100 11.385 46.200 80 11.300 20 11.300 57.500 0.000 0.000

Project time elapsed 60 months 100 72 months

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Projected cash flow until 30th June 2009 (revised SEP 2005)

Amounts in Mio. DKK Total 30.06.2005 30.06.2006 30.06.2007 30.06.2008 30.06.2008

Mio. DKK % FY 2004/5 Accumulated % FY 2005/6 Accumulated % FY 2006/7 Accumulated % FY 2007/8 Accumulated % Balance %

1. National PFM Framework 17.0 100 0.770 2.514 15 3.915 6.429 38 4.220 10.649 63 2.135 12.784 75 4.216 25

1.1 Service providers (contracts) and au 7.5 100 0.200 0.450 6 1.395 1.845 25 1.720 3.565 48 0.535 4.100 55 3.400 45

1.2 Equipment 2.0 100 0.070 0.534 27 0.600 1.134 57 0.200 1.334 67 0.200 1.534 77 0.466 23

1.3 Awareness Mat/Commm/Training 3.0 100 0.200 0.960 32 1.020 1.980 66 0.800 2.780 93 0.500 3.280 109 (0.280) -9

1.4 Collaborative Research Activities 3.0 100 0.000 0.000 0 0.600 0.600 20 1.200 1.800 60 0.600 2.400 80 0.600 20

1.5 NFP and EPU Operational costs 1.5 100 0.300 0.570 38 0.300 0.870 58 0.300 1.170 78 0.300 1.470 98 0.030 2

2. Implementation of PFM in the LGRP 24.0 100 2.571 3.960 17 4.300 8.260 34 5.450 13.710 57 6.450 20.160 84 3.840 16

2.1 Support to RAS 2.0 100 0.058 0.058 3 0.400 0.458 23 0.550 1.008 50 0.550 1.558 78 0.442 22

2.2 Support to Districts 4.0 100 1.500 2.764 69 0.300 3.064 77 0.300 3.364 84 0.300 3.664 92 0.336 8

2.3 District Operational costs 2.0 100 0.013 0.138 7 2.200 2.338 117 0.600 2.938 147 0.600 3.538 177 (1.538) -77

2.4 Investments in villages 6.0 100 0.200 0.200 3 0.500 0.700 12 1.500 2.200 37 2.000 4.200 70 1.800 30

2.5 Service Providers Cont. to villages 10.0 100 0.800 0.800 8 0.900 1.700 17 2.500 4.200 42 3.000 7.200 72 2.800 28

11.0 100 1.216 5.069 46 2.350 7.419 67 2.700 10.019 91 2.800 12.819 117 (1.819) -17

3.1 PFM Technical Adviser 3.5 100 0.448 1.828 52 0.900 2.728 78 0.900 3.628 104 0.900 4.528 129 (1.028) -29

3.2 PFM Financial Management Adviser 3.0 100 0.448 1.753 58 0.900 2.653 88 0.900 3.553 118 0.900 4.453 148 (1.453) -48

3.3 National financial mgt. asst. and audits 1.5 100 0.000 0.000 0 0.300 0.300 20 0.400 0.600 40 0.500 1.100 73 0.400 27

3.4 Operational expenses for advisers 1.0 100 0.020 0.485 49 0.050 0.535 54 0.100 0.635 64 0.100 0.735 74 0.265 27

3.5 Pool of internat./nat.short t. advisers 2.0 100 0.300 1.003 50 0.200 1.203 60 0.400 1.603 80 0.400 2.003 100 (0.003) 0

4. Contingency (+ex.diff.) 5.5 100 0.000 0.037 1 0.400 0.437 8 0.437 8 0.437 8 5.063 92

TOTAL 57.5 100 4.557 11.580 20 10.965 22.545 39 12.370 34.815 61 11.385 46.200 80 11.300 20

13.180

Project time elapsed 24 months 40 36 months 60 48 months 80 60 months 100