ODA bill reform as a priority bipartisan matter

During the May 28th presentation of the ActionAid annual report on Italian development cooperation, the current Undersecretary of State for Foreign Affairs, Sen. Mantica, and former Foreign Affairs Minister, Hon. D'Alema in a bipartisan move both agreed to deal with the legislative reform of the ODA bill, as a matter of priority. They also agreed to restart discussions from the text that was tabled for discussion in the Foreign Affairs Committee of the Senate during the last legislative term. Undersecretary commended Minister Frattini’s decision to directly deal with development cooperation and Sub-saharan Africa, as a first sign of political commitment by the new Government on development cooperation related issues. Meanwhile rumours warn against a sudden and significant financial reduction in the current development cooperation budget, in mid-June.

Italian aid in Afghanistan: predictable but tied

According to the Afghan NGOs coordination report, the Italian development cooperation disbursed all committed aid in 2007, becoming one of the best performers in disbursement together with Australia and UN Agencies. However, the report questions whether those funds were efficiently spent or got wasted in expensive subcontractors and poor quality work. The report quote the example of the Italian sponsored reconstruction of a Kabul hospital. According to Kabul Press, who investigated the project, UNFPA were given $2.2m for the work, which was sub-contracted to the UN Office for Project Services (UNOPS), again sub-contracted to an Italian organisation- INTERSOS -, who in turn sub-contracted to an Afghan construction company. On the basis of a government investigation and sources involved with the project, Kabul Press report that less than half of the total budget was spent on the project, and the quality of the work was so poor that it required further reconstruction.

http://www.kabulpress.org/my/spip.php?article830

NGO resources contributing to Italian tied aid

According to the latest OECD data, the percentage of tied aid in italian ODA - discounting debt - is highest in Europe - above 70%. Tied concessional loans account for up to 73% of tied aid, thanks to an article in the ODA law, compelling to issue special waivers to un-tie concessional loans.

However, NGO funds allocation mightbe responsible for main share in the tied aid grants. Accurate estimates are impossible as 2006 data have not been fully reviewed, yet. However, according to the DAC tied-aid definition 100% of Italian NGOs committed-funds, following the national procedure, are tied.

The main responsibility lays within the administrative procedure for allocation: the Italian system is not based on call for proposals open to national and non-national NGOs.Actually, the only used procedure for funds allocations to NGOs consists of NGOs submitting spontaneous projects to the development cooperation to be screened following geographical or sectorial official cooperation priorities.

If the proposal fits with the main official priorities, it gest the whole budget funded by the Italian development cooperation. No-Italy based NGOs are excluded from all official funds.