People's Democratic Republic of Algeria Twinning fiche P3A-III    DZ 13 ENPI FI 02 16 R2 __________________________________________________ Support the PDG in organizing and making effective the business-processes related to the prospective ___________________________________________________________________________________________________ Ministry of Finance Prospective Directorate General This twinning project fiche is a translation of the official version in French language, aiming at a widespread publication. In case of divergence, the French version shall prevail. 1 TABLE OF CONTENTS 1. Basic Information ............................................................................................................................................................. 4 1.1 Program .................................................................................................................................. 4 1.2 Twinning Reference .......................................................................................................................... 4 1.3 Twinning Title ................................................................................................................................... 4 1.4 Sector ...................................................................................................................................... 4 1.5 Beneficiary Country ................................................................................................................ 4 2 Objectives ........................................................................................................................................................................ 4 2.1 General objective ................................................................................................................... 4 2.2 Specific objective .................................................................................................................... 4 2.3 Contribution to the Association Agreement implementation ................................................ 5 2.3.1 Strategic Framework ................................................................................................... 5 2.3.2 Contribution to the Government's action plan implementation. ........................... 6 3. Project Description ........................................................................................................................................................... 6 3.1 General context and justification of the Twinning ................................................................. 6 3.2 Related Activities .................................................................................................................... 8 3.3 Results .................................................................................................................................... 9 3.4 Activities ............................................................................................................................... 12 3.4.1 Opening and Closing Conferences......................................................................... 12 3.4.2 Activities of Result 1: The institutional, functional and organisational capabilities of the PDG are strengthened;....................................................................... 13 3.4.3 Activities of Result 2: A system for the collection, processing and dissemination of information is operational allowing the development of strategic analysis; ................................................................................................................................ 14 3.4.4 Activities of Result 3: Prospective studies are conducted using suitable instruments; .......................................................................................................................... 16 3.4.5 Activities of Result 4: The PDG has good command of public policies monitoring and evaluation methods; ................................................................................ 17 3.5 Means and inputs of the twin Member State administration .............................................. 18 3.5.1 Profile and tasks of the project director (PD) .................................................. 18 3.5.2 Profile and tasks of the Resident Twinning Advisor (RTA) .......................... 18 3.5.3 Profile and tasks of the RTA’s assistant .......................................................... 19 3.5.4 Profile and tasks of Short term experts ........................................................... 19 4. Institutional framework ....................................................................................................................................................... 20 4.1. Beneficiary Institution ................................................................................................................... 20 4.2. Other partner institutions ............................................................................................................. 21 5. Budget ............................................................................................................................................................................ 21 6. Methods of implementation ............................................................................................................................................ 21 6.1 Project Contracting Authority ............................................................................................... 21 6.2 Beneficiary Institution ........................................................................................................... 21 6.3 The Project Steering Committee ........................................................................................... 23 7. Schedule of implementation ........................................................................................................................................... 24 7.1 Call for proposals date .......................................................................................................... 24 7.2 Expected date for twinning activities kick-off ...................................................................... 24 7.3 Project duration .................................................................................................................... 24 8. Sustainability of the project ............................................................................................................................................ 24 9. Cross-cutting issues ........................................................................................................................................................ 24 10. Conditionality and sequencing ........................................................................................................................................ 25 2 Annexes .................................................................................................................................................................................. 25  Logical Framework Matrix ............................................................................................ 26  Schedule of implementation .......................................................................................... 33 Acronyms AA Agreement of Association Algeria-EU Algeria-EU Association Agreement This/EC European Commission European Commission CEQD Cadre d’évaluation de la qualité des Data Quality Assessment Framework données CP/PD Chef de Projet de jumelage Twinning Project Director CRJ/RTA Conseiller résident de jumelage Resident Twinning Advisor DGP/PDG Prospective Directorate General Prospective Directorate General DUE/EUD Délégation de l’Union Européenne European Union Delegation EM (P)/MS(P) État membre(partenaire) Member State (Partner) GAR/ROM Gestion axée sur les résultats Results Oriented Management IEVP/ENP Instrument européen de partenariat European Neighbourhood Policy et de voisinage IOV/OVI Indicateur objectivement vérifiable Objectively Verifiable Indicator LTE/ELT Expert Long Terme Long Term Expert MCJ/CTM Manuel commun de jumelage Common Twinning Manual ONS/NSO Office National de la Statistique National Statistics Office UGP/P3A Unité de gestion de Programme/ Project Administration Office/Support to PAO Programme d’appui à la mise en the Implementation of the Association œuvre de l’Accord d’association Agreement Algeria EU Algérie-UE PB/BC Pays bénéficiaire Beneficiary Country RADP/DPRA People's Democratic Republic of Democratic and People’s Republic of Algeria Algeria STE/ECT Expert Court Terme Short Term Expert TAIEX Technical Assistance and Information Technical Assistance and Information Exchange Exchange UE/EU Union européenne European Union 3 1. Basic Information 1.1 Program Program to support the implementation of the Algeria-EU Association Agreement: P3A-III ENPI/2013/024-758 1.2 Twinning Reference DZ 13 ENI FI 02 16 R 1.3 Twinning Title Support the PDG in organizing and making effective the business-processes related to the prospective 1.4 Sector Economy- Finance 1.5 Beneficiary Country People's Democratic Republic of Algeria 2 Objectives 2.1 General objective The general objective of the twinning is to provide an advisory support to the PDG in terms of prospective, strategic steering and territorialisation of public policies ("anticipation- proposal- evaluation) in the socio-economic fields. 2.2 Specific objective The specific objective is to strengthen the organisation and the capabilities of the PDG around the prospective business-processes and to develop an information management system as well as the necessary tools for the development and evaluation of public policies. 4 2.3 Contribution to the Association Agreement implementation 2.3.1 Strategic Framework Within the framework of the Barcelona process and the Euro-Mediterranean partnership launched in November 1995, Algeria and the European Union have signed an Association Agreement (AA) which entered into force on September 1st, 2005. This defines the legal framework by which are established the relations between the parties in the economic, commercial, political, social and cultural fields. The objective of strengthening the capacity of the Prospective General Directorate (PDG) in terms of monitoring and strategic analysis as well as evaluation is stated right from the Article 1 of the Algeria-EU Association Agreement: « promote the cooperation in the economic, social, cultural and financial fields ». The twinning project of the PDG is an expression of the Community will to provide Algeria with a significant support in its efforts to reform in the areas of economic and social development. Throughout the targeted results, it will also feed the regular economic dialogue between the two parties in all fields of macro-economic policy. The Association Agreement (AA) road map also focuses, in the structural reformspart, on the implementation and modernisation of an economic information and prospective system. More specifically, this twinning project is in line with the Economic Cooperation program; title V of the AA, Chapter 1, and Articles 47 to 50 and 64: - Art.47: Bearing the strengthening of the economic and socialcooperation ; - Art.48: Pertaining to the free trade between Algeria and the European Community; - Art 49: Defining the means to be implemented in terms of cooperation: economic dialogue; information exchange; consulting; expertise and training activities; technical, administrative and regulatory assistance; support actions to partnership and investment; - Art.50: On regional cooperation; - Art.64: Aiming to align methodologies and to use statistics, amongst others, on foreign trade, public finance and balance of payments, population, migration, transportand telecommunications, and generally all the fields covered by this Agreement. The twinning project is also in line with the social-cultural stream, Title VI of the AA: - Art. 74:States the importance of social development, together with the economic development. It is also in line with Title VII, Financial Cooperation section, notably in Articles 79 and 80: - Art 79: Concerning particularly the facilitation of reforms aiming to modernise the economy, upgrading the economic infrastructures and accompanying the policies implemented in the social sectors. - Art.80: Focused on restoring the major financial balances and the creation of an economic environment conducive to the step-up of growth and the improvement of the Algerian population welfare, and adapting the development policies supporting instruments. 5 2.3.2 Contribution to the Government's action plan implementation. Through its action plan presented in 2015, the Algerian Government has set the objective to reduce the development delays that have built up for more than three decades and to create the necessary conditions for a sustainable integration of a knowledge-based Algerian economy. The Government plans to:  Continue the efforts undertaken to integrate the economy into the regional and international environment and give priority to the national productive sphere in order to achieve the main objective of gradual phasing out of hydrocarbons dependence;  Support a qualitative training of the human capital to enhance the effectiveness of the Algerian economy;  Step up decentralisation by strengthening local authorities and improving territorial development forecasting and simulation tools. In order to modernise the economic and financial sphere, the Government notably plans to:  Pursue the prospective studies to deepen and clarify the country's development vision;  Set up a monitoring system of international economic and financial trends;  Develop macroeconomic forecasting tools. The twinning project appears thus to fully comply with the Government program and will help to achieve the above stated objectives. Strengthening the PDG capacity will allow establishing, within the Ministry of Finance, the foundation of an organisation that would be the reference in terms of prospective and country strategic analysis. 3. Project Description 3.1 General context and justification of the Twinning The PDG and its missions The PDG was created within the Ministry of Finance in September 2013, after the suppression of the State Secretariat to the Prime Minister in charge of the Prospective and Statistics, as defined by the Executive Decree 13-423 of December 18th, 2013. The Prospective General Directorate (PDG) has been mandated to analyse development policies, including sectoral policies, thereby supplementing the analysis functions of the budgetary and fiscal policiescarried out by other departments of the Ministry of Finance. The Decree n° 13-423 as of December 18th, 2013 has assigned the PDG 4 main missions:  The development of studies and prospective analyses: in the economic, social and demographic fields; identification and study of strategic sectors ;  National long-term strategy in social, economic and territorial development fields: consistency analysis of economic and social development programs and analysing their consistency; participation in the national sustainable development; determination of stability conditions of major economic balances as well as their long-term stability ;  Monitoring and evaluation: evaluation of the development and growth programs impact; monitoring framework of the territorial development ;  The development of tools and methodologies: analysis and prospective tools, forecasting tools. 6 PDG missions consist of (i) analysing and processing information in order to establish the possiblefuture scenarios (exploratory prospective answering the question "what can happen? "), (ii) identifying the means of action available to the State and support the formulation of measures (exploratory prospective or analysis answering the question "what can we do?"),and finally, (iii) monitoring andevaluating public policies. The difficulties encountered by the PDG The PDG is currently encountering difficulties to fully operationalise its missions. Its difficulties can be explained first by:  Its organisation: an executive is initially specialised by thematic study rather than by business-process. In the future, the PDG must be able to constitute cross-functional teams and introduce a matrix management structured around its professions ;  Problems accessing and monitoring national and international information that are relevant for the analysis of key development issues;  Insufficiency of the participatory approach, especially with the sectorial ministries;  Lack of training and knowledge upgrade programs;  And finally, the insufficient methodological skills to put the prospective analysis into practice. PDG total staff is about 230 agents, including 33 senior executives and 50 engineers and administrators, dispatched between the different departments and services. The PDG professions also require good functional capacities in terms of management, drafting, communication and relations, these capabilities must be strengthened in the upcoming years. Relaunching the twinning request of the DGP After transferring the SEPS activities in FGP, a new Twinning sheet was produced, literally repeating the terms of the previous record. To account closer to its new missions, and on the advice of the Expert Referent Full of PSMFP, the DGP has reformulated its twinning application. This pairing sheet has been revised to better adapt to the expertise available within Member- States. Twinning input The support provided by the twinning will allow the PDG to:  strengthen the team-based approach of its business-processes, especially in terms of strategic monitoring, strategic analysis, macroeconomic projections as well as public policies monitoring and evaluation;  receive practical training and workshops on methods and tools, as well as exchange of experience and good practice; 7  develop data processing and utilisation (strategic monitoring and information system) in the economic, social and territorial development fields;  define the measurement instruments and tools necessary for the economic and social development;  formulate strategic analyses of socio-economic development problems and propose related measures/actions;  develop medium and long term macroeconomic scenarios, including notably, the impact of the Government's Action Program and the demographic changes;  contribute to the monitoring work and evaluation of the public policies and the production of adequate indicators;  Strengthen communication on the work performed by the PDG. Assessment of the PDG twinning appropriation capacity The PDG is currently experiencing deficiencies in terms of prospective and public policies monitoring-analysis-evaluation techniques. These issues are raised by the executives of the PDG regarding the capability of the latter to set up a prospective system specific to Algeria. The PDG executives are eager to acquire the methods and tools, and be aware of good practices in order to implement this system and better respond to Algerian socio-economic development issues. After a thorough review of the statutory texts of the PDG and comprehensive interviews with the Director General and the 5 directors of the PDG, the international expert mandated by P3A considers,based on the results of the twinning project defined below, that the directorate general is ready to be reinforced as planned. The staff has the will and the necessary capabilities to put in place new methods, improve the information required for prospective analysis, and finally carry out the missions that have been assigned to the PDG, including notably the prospective in the economic and social matters. A particular attention has been given to the twining activities scope with respect to the current capabilities of the DG and its staff to achieve the (mandatory) results, avoiding thus any over-commitment and duplication with all other potential contributions of donors. 3.2 Related Activities The twinning project teams will ensure that there will be no duplication between the activities of the twinning and those that could be developed by other projects, notably those of the World Bank project and the UNESCO. Up to now (1st semester of 2016), the PDG has notbenefited from any significant support from funders. Only fewtraining sessions have been delivered in the past two years. - With the European Union: a twinning project is currently underway with the Directorate General of Taxes. 2 Other twinning projects are planned for the end of the year (2016), one concerns cadaster, whereas the other one is with the customs. Within the framework of the public finances agenda of P3A and its modernisation plan, different ad hoc missions are regularly organised to support budget, customs, public accounting, forecasting (PFDG), taxes, land registry and cadaster, information system, change management, and 8 public treasury. These actions are more finance and budget focused while the current twinning is rather focused on the macro-economic and social forecasting. - With the World Bank: a project to support the Ministry of Finance is currently being prepared on the prospective vision of Algeria by 2035. This prospective vision will be developed from the sector analyses and will involve the main sectoral departments. The appropriation of these works involves de facto the prior strengtheningof the PDG steering and technical coordination function which is considered the core of the twinning project. The PDG twinning project is on the PDG organisationalimproving, instruments and methods in the medium and long term prospective,as well as 3 pilot thematic experiments. A check will be conducted for redundancy during the achievement of the two projects. - With UNESCO, including an EU funding input through the MED-Youth program: A project is being negotiated with the PDG which is rather focused on youth and training- employment adequacy. It is about conducting projections on the training needs based on the evolution of jobs. A particular attention shall be given to the complementarity of the two projects, the Twinning being more focused on the labor market and economic development, with an implementation in the 3 selected pilot areas. 3.3 Results At the end of the twinning, the four following results must have been achieved:  Result 1 : The institutional, functional and organisational capabilities of the PDG are strengthened;  Result 2 :A system for the collection, processing and dissemination of information is operational allowing the development of strategic analyses;  Result 3 : Prospective studies are carried out from suitable instruments;  Result 4 :The PDG has good command of public policies monitoring and evaluation methods. Result 1: The institutional, functional and organisational capabilities of the PDG are strengthened The operationalisation of the PDG in its overall advisory support to strategic steering and the territorialisation of public policies require the prior analysis of:  The functional capacity of the PDG and its departments to respond to its missions in terms of strategic monitoring, prospective and strategic analysis, as well as follow-up and evaluation of public policies;  The organisation of the PDG and its departments (economic prospective analyses and studies, prospective studies of human development and demography, growth policies, social prospective analyses and studies, prospective studies to support the territorial 9 development, directorate of methods, directorate of information system and pooled functions). This institutional, functional and organisational diagnosis of the PDG is necessary to identify and propose the strengthening measures of the PDG cross-cutting management (matrix) as well as to give guidance to the development of capabilities in terms of (i) information access and processing, (ii) projection, forecasting and simulation tools and instruments, (iii) public policies monitoring and evaluation tools and instruments, and (iv) communication, negotiation and drafting. This will help to define in advance the job descriptions that match the target organisation of the PDG and the related staff training plan, at both the managerial and technical levels, which will then be implemented during the two-year period of the twinning project. Indicators (OVI) - R1:  A functional and organisational diagnosis-audit and proposals are delivered to strengthen the PDG capabilities;  The job descriptions of the senior executives (33) and middle executives (50) are established on the basis of this audit-diagnosis;  A bi-annual and modular training plan for the PDG executives is developed and implemented, including the familiarisation with the good European practices and public management training. Result 2 : A system for the collection, processing and dissemination of information is operational allowing the development of strategic analyses The access to and the dissemination of knowledge are now recognised as having a decisive impact on the economic and social development and on the quality of its programming. One of the bottlenecks encountered by the PDG in its advisory support function is as a matter of fact the quality of and access to information (be it national/international; quantitative/qualitative). The strengtheningof the strategic monitoring, upstream, and of the analysis and strategic prospective, downstream, is achieved through the design, then the setting up of a specific economic, social and territorial information system (or a platform of economic intelligence). This information system will in particular allow defining the type of information necessary to the formulation of strategies, the data sources and methods of collection relating thereto, as well as information processing, synthesis, dissemination and access techniques. This shall help the access to and processing of quantitative and qualitative, national and international information. As for the national statistical data, an assessment of their quality (methodological rigor, adequacy to the users’needs, dissemination, and accessibility) is a prerequisite to be able to improve their use for decision making purposes. The operationalisation of the economic, social and territorial information system will help to issue and disseminate a strategic watch bulletin. Indicators (OVI) - R2:  An economic, social and territorial information system is designed and used by the PDG to formulate strategic analyses and measures;  A biannual bulletin of economic, social and territorial information is regularly elaborated by the PDG and then disseminated starting from the second year of the twinning project; 10