Peace Dividend Trust Consolidated Response to "Independent Progress Report of the Peace Dividend Marketplace Timor-Leste", January 2010

8/7/2019 Peace Dividend Trust Consolidated Response to "Independent Progress Report of the Peace Dividend Marketplace

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PeaceDividendTrustConsolidatedResponseto:

PeaceDividendMarketplaceTimorLeste (PDMTL),Aidworks INH184, Independent

ProgressReport,RogerCollier,January2010.

While Peace Dividend Trust (PDT) agrees with some of the reports general and specific

observationsitassertsthatitisprofoundlyflawedbothconceptuallyaswellasindetail. Assuch

PDTrejectsitscorefindingsandrecommendations.

On29December2009PeaceDividendTrustsubmitteditsdetailedcommentsonthefirstdraft

of theprogress report. On12 FebruaryPeaceDividendTrust receiveda final versionof the

report. Despiteprovidingcompleteinformationtotheindependentconsultantduringboththe

consultantsvisittoTimorLeste,afterwardsviaandagainon29Decemberthereportsreflects:

1) amisunderstandingoftheprojectsfundinghistory;2) amisunderstandingoftheprojectsdesign,objectivesandimplementation;3) impractical,inaccurateandilladvisedrecommendationsforfutureaction.

1.Fundinghistory

This responsewill not highlight all of the factual errors1 of the report. However, in a key

examplethereportsauthorwasinformedonatleasttwooccasionsinwriting,thattheproject

iscurrentlyfundeduntilmid2010,butonthesecondpageofthefinalversionofthereport it

continuestostatethatPDMTL isfundeduntil30September2012. Thiswasthedateagainst

whichPDTsubmitteditsmultiyearproposalfrom2008until2012. Thismultiyearproposalwas

notfunded. Assuchthereportisreviewingaplan,butnotthereality. Assuchtheconsultants

reportislargelyaworkoffiction.

Thefinalreportcontinuestoarticulateaninaccuratecomprehensionoftheproject. Itsuggests

thatafterthefirstyearofactivitiesthatPDTsoughttoexpandtheprojectsactivities. Thisisnot

correct, PDT sought a long term funding agreement so as to be able to plan,monitor and

implement a largely similar set of activities so as to achieve objectives, beyond a 12month

fundingcycle.

1 On page 7 the reviewer in accurately asserts that Portugal is TimorLeste largest

donor.


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The report highlights what is perceived as being a lack of disciplined planning and

implementation. In 2008 AusAID and PDTmade a joint decision to downsize the PDM TL

projectinamannerthatcausedareductioninmonitoringandoversightoftheprojectsoasto

maintainkeyactivitiesand retainnational staff.Theprojecthasoperatedata reducedpace,

withless internationalstaffoversightandcapacitytopursuetheobjectivesasidentifiedinthe

projects2008proposal.Thiswasdonesoastobeabletoreturntofulloperationalcapacityas

andwhenfullfundingwasrestoredinitiallybelievedtobepossibleundertheauspicesofthe

RuralEnterpriseDevelopmentProgramme(REDP)subsequentlytheMMDF.

PDTwasencouragedtoexpandthedonorbase,andkeeptheprojectfunctionalinanticipation

ofapossiblemultiyearcontributionagreement, inthecontextofwhichadetailedworkplan,

withascheduleofobjectivesandactivitiescouldbeimplemented. Sincethesedecisionswere

madeinSeptember2008PDThasexpandedthedonorbasetoincludeGovernmentsofNorway

and Canada, in addition to the Arsenault Family Foundation and Eni Spa. 2However, in the

meantimelongertermfundinghasnotbeenforthcomingsoastorebuildtheprojectfromits

strongstartin20072008.

Thereportdoesnotreflecttherealityoftheprojectsfundinghistoryaspertheaboveandasa

result it generally misses the mark both with regards to its observations and its

recommendations.

2.ProjectDesign,ObjectivesandImplementation.

ThereportsuggeststhatPDMTLwasaroughreplicationofanAfghanistanprojectassuchisnot

asrelevantasitshouldbe. Onetheonehandthisisaccurate. Itisareplicationofapilotproject

inAfghanistanbutwithverysignificantdifferences inprojectdesign,and implementation. On

theotherhand it isaspurioussuggestion, it issimilar toasserting thata templatewaterand

sanitationprojectmodelcannotbereplicatedfromcountrytocountry.

Thereportalsoarguesthatwhatisdescribed,asthepeacedividend,isdifferentfromprivate

sector development. PDT asserts that this interpretation suggests the report does not

understand the whole purpose of the project it being to expand and deepen the peace

dividendvialocalprocurement,byanyandallparties,buildingthecapacityofthelocalprivate

sector,andinturngeneratingwealth,jobstaxrevenueetc.

The report consistently refers toproject activitiesusing terminology and argumentation that

suggestprimaryprojectproposalandreportingdocumentswerenotconsultedaccurately,ifat

all.Forexample,theconsultantreferstoamatchmaking/procurementserviceasanactivity.

2DespitebeingcorrectedonatleasttwooccasionsthereviewercontinuestoassumethatPDMTLisbeingfundedby

theSkollFoundation. Thisisnottrue.


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Thisismysteriousastheprojectisseriesofprocurementservices,withfiveactualizedandone

potentialactivities. 1)BusinessVerification2)Matchmaking3)Micromatchmaking4)Tender

Distribution5)Trainingand6)Marketing/Advocacy.

Furthermorethatconsultantsreportsuggeststhatthematchmaking/procurementservice is

notyetviable. PDTassertsthatthisisfiction,andthatithasbeenoperatinginDiliandupto

ninedistrictssinceFeb2008,havingfacilitatedthousandsofdocumentedbusinesstransactions.

Ifitisnotyetviable,thenwehaveAusAID,andtheGovernmentsofCanadaandEniSpabeen

fundingit?

InthereportssectiontitledEvaluationCriteriaRankingsPDTscoresmostpoorlyintheareaof

MonitoringandEvaluation. PDTasserts that it isextremelydiligent inkeeping recordsof its

activitiesandprovidingconsolidatedmonitoringreportstoitsdonorsonamonthlybasis. PDT

hasonlyeverreceivedwrittenfeedbackonthesereportsonce,in2008. Concernsraisedatthat

timewereaddressed. However,PDT recognizes that therehavebeen shortcomingsbut that

thesearegenerallynotaresultofpoorprojectdesignorimplementationbutduetotheadhoc

fundingarrangements ithasbeenoperatingundersince2008. Thereportfailstoconnectthe

dotswithregardstothismatter.

Additionally, in the Evaluation Criteria Rankings PDT receives a low score in regards to

sustainability. PDT hasworked very hard alongside theMinistry of Tourism Commerce and

Industry to develop a sustainable future home for the TimorLeste Procurement Databases

(www.buyintimor.org). IfPDMTL is tobe trulysustainable in thisarea itneedsasustained

leveloffunding. Theconsultantagainfailstomaketheconnectionbetweenadhocfundingand

performance.

Furthermore, in areas of the project,which are viewed as unsustainable, the report fails to

understandwhattheproject isdoing. It ismanywaysnotmeanttobesustainableas it isan

intervention. Itispioneeringanewapproachtopeaceops/privatesectordevelopment,which

has thegoalofdrivingasmuch internationalmoney into the localeconomyduring thepost

conflictrecoveryphase. Therearealsopowerfulsecondaryresults,whichcanhave longterm

developmentalimpactontheprivatesectoraswell. Itisawellknownargumentnowthatthe

post conflict phase lastsmany years and not simply amatter of a lifespan of a UN peace

operation.

PDTassertsthatbyassistingbusinessesinperformingmorebusinesstransactionsthatthisisby

itsverynaturesustainable. Abusiness that isable to increase revenues isultimatelymore

likely to be a sustainable business. The notion that Government partners are required for

developingasustainableprivatesectorisjustnotinlinewithwhatafreemarketisallabout.


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Thereportstatesthattheprojecthasfewmeasurableindicatorsofimpact,whichisastartling

assertionaswearewidelyconsideredtohavemoreharddataonourprojectactivitiesandthe

TimoresebusinessenvironmentthananyothereconomicprojectoragencyinTimor(including

theEU,Worldbank,USAID,etc). Ingeneral,theimpactmetricsareglossedover inthisreview

andarenotgivenmuchconsideration.

The report implies that the reduced funding is because of the project's lack of planning

documentation. This is the firstwe have heard this and it seems to colour the rest of his

analysis. InseveralplaceshecriticizestheprojectfornotprovidingsurveydatatoAusAID. We

wouldlikethispointclarifiedbyAusAIDaswecanfindnorequestsforthisinourrecords.

Furthermore,theconsultantsuggeststhatPDTservicesoverlapwithsomeEU,USAID,UNDPand

ILOprogrammes. This isfactually incorrectand indeedthoseprogramsarekeenpartnersand

PDTservicesareusedbytheseactorsonaregularbasis. PDTassertsthattheseorganizations

findPDTcomplimentstheirownactivities. InfactallpartiesinTimorLeste,includingPresident

JoseRamosHorta,generallyconsiderPDTsservicesunique. PDTconcedes thatotherparties

maybealreadyconductingsomeofitsproposed,butunfundedtraininginitiatives.

3.Recommendationsforfutureaction

The report recommends that the TimorLeste Procurement Directory be transferred to the

MinistryofTourismCommerceandIndustry(MTCI)within12months. PDTassertsthatthisisill

advised for several reasons. MTCIneeds toappropriatelybudget for the transfer,and ithas

failedtodoso. Thisisduetothefactthatitwillnotbudgetforthetransferuntilsuchtimeas

fundingforprudentprolongedtransferprocessissecured. Atransfercanpossiblyoccurwithin

12months, but it risks resulting in the failure ofMTCI to properly absorb it. The reports

recommendsafundinglevelbelowthatisrequiredtoproperlyexecute,andiswithoutadequate

resourcesforplanning,monitoring,andevaluation.

The report suggests thatMTCI, speaking on behalf of theGovernment, is not interested in

fundingandmanagingtheTenderDistributionService. MTCI isnottheGovernmentin toto

and PDT is currently engaged in discussions with some parts of Government to distribute

Government tenderson a fee for servicebasis. Given the tremendouspoliticalpressure for

increased transparency in thematterof tendering inTimorLeste there isaneed forongoing

activity in this area. The report suggests that a soon to be launched Timorese Chamber of

CommercemaybeapossiblehomeforTenderDistributionServicesinduecourse. PDTagrees

and one is currently being established but itmay take at least another yearmore for it to

materialize.Thereportsrecommendsa funding levelbelow that isrequiredproperlyexecute,

andiswithoutadequateresourcesforplanning,monitoring,andevaluation.


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Thereportrecommendsthatmatchmakingshouldnotbepursuedasastandaloneactivityasit

isalreadybeing conducted inwholeorpartbyprojectsbeing conductedby ILO, theEU,and

USAID. While there are elements of truth to this observation it is generally inaccurate and

demonstratesapoorcomprehensionofwhatPDTorotheractorsaredoinginTimorLeste. For

example,USAIDandILOregularlyviewPDTsactivitiesasbeingofserviceandorcomplimentary

totheirown. PDTassertsthereportsrecommendationsinthisareaareincorrect. Contraryto

the reports findings the Government of Canada has recently elected to fundmatchmaking

activitiesinTimorLestesborderregions.

Documents

Peace Dividend Trust Consolidated Response to "Independent Progress Report of the Peace Dividend Marketplace Timor-Leste", January 2010