1 Development PartnershipThe Indian Way

2 India`s Development Cooperation The HistoryIndia has a long history as a provider of development assistance . it is not new nor emerging. Started with the sense of shared history and commonality of colonial experience As we strive to provide better living conditions for our own people, we also do our utmost, albeit modest, to support fellow developing countries. Vasudhaiv Kutumbkam / One World International Cooperation as Development Partnership of equals Global interdependence and self-reliance

3 Principles of South-South CooperationSSC is built on a set of common non-negotiable principles Demand –driven National ownership and independence Solidarity Diversity and heterogeneity Respect for national sovereignty Non-conditionality Mutual benefit SSC is voluntary in nature Southern countries are NOT Donors BUT Partners

4 India`s Development cooperation CornerstonesNot Donor, but Partner Partnership of equals Voluntary and demand driven, Free from conditionality Respecting the sovereign right of partner countries in deciding national development policies Flexibility and adaptability : not straight-jacketed in terms of rigid rules and regulations or policy prescriptions Mutual Benefit

5 Genesis of Development Partnership Administration (DPA) of IndiaA long series of institutional innovations have been attempted at various levels and at different points of time for experimenting on delivery mechanisms of development partnership programme of India. The concerned divisions within the Ministry of External Affairs dealing with planning and delivery have also gone through several changes. Expanse of Indian Development Cooperation in terms of volume and reach has been increasing significantly over past years. The DPA was established in January 2012 to cater this expansion and to streamline the delivery of assistance and to improve the effectiveness of such efforts. 5

6 Genesis of DPA When deciding upon the structure and functioning of the DPA, the MEA sought to learn from the experiences of various other prominent models existing in this space. The DPA is an integral part of the MEA. It is a multi-division department within the MEA. The DPA functions in close coordination with the concerned Territorial Divisions of the Ministry, which continue to be the principal interlocutors with partner countries on identifying their development priorities. DPA takes on the responsibility for implementation and execution of the projects recommended by the Territorial Divisions. 6

7 Development Partnership Major InstrumentsLine of Credits 1 Grant Assistance 2 Capacity Building 3 Humanitarian Assistance/ Disaster relief 4

8 DPA Division of work Capacity Building 1 Grant Assistance AfricaNeighbouring Grant Assistance Others Grant Assistance 2 Line of Credits 3 Disaster relief 4

9 DPA-I DPA-II DPA-III - Grants : Africa - Grants : Others - Grants : Neighbouring - Disaster Relief - Lines of Credit - Capacity Building : ITEC

10 Lines of Credit (LoC) 1 Line of Credits 2 Grant Assistance 3Capacity Building 3 Humanitarian Assistance/ Disaster relief 4

11 Lines of Credit [LoCs] Concessional loans offered through EXIM Bank. LOC is not a grant but a Loan on concessional terms. It has to be repaid by the borrowing country over a period of time. LoCs are demand driven and aligned to the development priorities of the borrowing country and India’s strengths Wide range of projects in agriculture, irrigation, food processing, rural electrification, IT, health and infrastructure [roads, railways, cement, power, etc. Total LOC commitments is of USD$ billion for 226 LoCs in 64 countries. For year itself the commitment is of US$ 2.5 billion. LoCs approved have more than doubled during the six year period from compared to the previous six year period till

12 Lines of Credit [LoCs] contd.Government of India provide LOCs on attractive credit terms depending upon the their classification as : Country classification L& LMI countries with minimum binding concessional requirement (Category I) L& LMI countries with no minimum binding concessional requirement (Category II) Other developing countries (Category III) Rate of Interest 1.50% 1.75% Libor+1.5% Maturity 25 years 20 years 15 years Moratorium 5 years Grant Element* 37.48% 31.37% 24.31% The Grant Element component is in-built into the terms of credit. It is defined as the difference between NPV of the loan repayments and the actual amount of loan. The Grant Element is not offered separately.

13 LoC Recipient Countries – 64 Total LoC Commitments – US$ 16.9 bnAmount in USD mn

14 LoC Commitments Region-wise

15 Overall Sectoral Distribution for LoCs

16 Lines of Credit Challenges facedWeak Project conceptualization: Inadequate capabilities and resources of partner countries; Change in scope or nature of LoC by borrowing Government. Difficulties in Project appraisal: Inadequate understanding of appraisers about host country conditions in desk level appraisal of projects; Difficulties in appraising costs; Requirement of multi-sectoral technical experts Delays in land acquisition, statutory approvals, customs clearance, concurrence to bilateral MoUs, etc., result in delay in project implementation Political sensitivities of partner countries Internal political changes, economic cycles and security impediments.

17 Mitigating the challengesIn December 2015, the government further extended economic assistance programme, Indian Development and Economic Assistance Scheme  ( IDEAS), under which line of credit is provided, for next five year with revised guidelines. Strengthened project monitoring [Borrowing Country/MEA/EXIM Bank] Bilateral committees and monitoring mechanisms are established PMCs, Local Missions, Bilateral consultations, visits etc DPR and Feasibility study made essential with project proposals Detailed guidelines for essential points to be covered in preparation of DPR by borrowing countries Provision for utilising 1% of LOC towards cost for preparation of DPR for countries lacking the capacity to prepare it on its own Pre qualification of competent agencies for each project.

18 Mitigating the challenges (cont’d):Vetting of Tender documents prior to tendering Vetting of Contract documents to include milestone-linked payments, performance guarantee, retention money, penalty for delays , Ethics and Integrity Clause etc. Requirement of independent Project Management Consultant (PMC) through a fair bidding process; Evaluation made compulsory for all LoC projects of USD 50 million or more (for a single project).

19 Mitigating the challenges (cont’d):Special provisions in the revised LoC guidelines: Additional tenure of 5 years and moratorium of 2 years for (a) Infrastructure Projects costing US $ 200 million and above; (b) Projects of strategic importance costing US $ 100 million and above. LoC for financing the equity contribution of a Borrowing Government in a Special Purpose Vehicle/ Joint Venture/ Subsidiary for Project execution, if the contractor/ partner selected through competitive bidding is an Indian entity

20 Capacity Development 1 Line of Credits 2 Grant Assistance 3Humanitarian Assistance/ Disaster relief 4

21 Capacity Development Brand ITEC ITEC Deputation of ExpertsITEC also subsumes capacity building offered by India under the Special Commonwealth African Assistance Programme and the Technical Cooperation Scheme (TCS) of Colombo Plan.

22 Capacity Development ITEC is the flagship programme which offers short-term (most of them) training programme for professionals and government officials including civil servants, policy makers, defence personnel and for other working professionals. The training programme is fully sponsored by the Government of India, This year more than training slots are on offer for 161 partner developing countries under ITEC/SCAAP and 500 civilian slots under TCS-CP. More than 70 institutes are offering 284 courses this year, in a wide and diverse range of skills and disciplines. Over and above these courses, special courses are also conducted as per specific demands received from Partner countries.

23 Offered Scholarships

24 Major Areas of TrainingInformation Technology and Telecommunication Environment and Renewable Technology Rural development SMEs and Entrepreneurship development Finance & accounts, audit and banking, Education, Planning & administration, Management Hydrology, Water Resources, Specialised courses like Crime records, Parliamentary studies, Geographical Survey textiles, rural electrification, tool design

25 Recent Special Courses (2015-16)Mid-Career Training Program for 1500 Bangladeshi Civil Servants at National Centre for Good Governance, Mussoorie Special course for Bhutanese Audit Officers at International Center for Information Systems and Audit (ICISA), Noida on 'Audit of Change Management' Special course for Mongol Custom Officers at National Academy of Central Excise & Narcotics (NACEN), Faridabad Special Training Course for Colombian Teachers at English & Foreign Language University (EFLU), Hyderabad Special Training Course for candidates at Centre for Nano Science & Engineering (CeNSE), Indian Institute of Science, Bengaluru for seven neighbouring countries Special training course in English language for Mongol teachers and Interpreters(for ASEM Summit in Mongolia) Special course for Yoga Trainers Managers Development Programme at CDAC for Heads of CEITs, established under Indian Grant Essential Oil, fragrance & flavour for the Youth of Rwanda at Fragrance and Flavour Development Centre, Kannauj Election Management: Emerging Challenges at IIIDEM South-south Development Partnership-two-week programme at Research and Information System for Developing Countries (RIS),

26 ITEC Portal The whole process of ITEC scholarships is managed online through an integrated portal at Facilitate the interaction and contacts with ITEC Alumni. ITEC Back-end Public interface Mission Institutes Ministry of External Affairs Applicants General Public 25/02/16

27 Deputation of Experts Done at the request of Partner CountriesRequest comes through Missions abroad in the prescribed ITEC Form Done for a fixed period: Short Term : up to 6 months Medium Term : above 6 mths, below 1 year Long Term : above 1 year

28 Grant Projects 1 Line of Credits 2 Grant Assistance 3Capacity Building 3 Humanitarian Assistance/ Disaster relief 4

29 Grant Projects (…a snapshot…)Parliament building in Afghanistan Kaladan Multimodal Transit and Transport project, Myanmar Terai Road Projects and ICP project, Nepal Tri lateral Highway, Myanmar India-Nepal Cross Border Rail Link…. Connectivity Parliament building in Afghanistan India-Maldives Friendship Faculty of Hospitality and Tourism Studies at Male Houses for Internally Displaced Persons, Sri Lanka Emergency & Trauma Hospital, Nepal Medical equipment to IGICH Pan Africa e-Network Super computer facilities at Tanzania and Ghana Telemedicine network, Armenia Information Technology Salma Dam, Afganistan Punatsangchu, and Mangdechu Project, Bhutan India-Nepal Transmission Lines Transmission Line, Lao and Combodia Infrastructure Hydropower Power Transmission *This is only a indicative list and not an exhaustive compilation of projects..

30 Grant Project (…a snapshot…)Centres for Excellence in IT Ecuador Peru Panama CostaRica CDominica Egypt Morocco Tanzania Palestine Caricom PICs VTCs/EDCs Palestine Mongolia Malawi Zanzibar Belize Jamaica Eritrea South Sudan Solar Guatemala Egypt Bolivia Supplies Fiji (Sewing Machines,,Medical kits) Guinea(Computers) Liberia(Buses) Armenia(Tractors) HA-DR Cash grants (Syria,Lebnon,Jordan,Burundi) Grains (. Zimbabwe,Somalia,Yemen,Afganistn.) Supplies (Nepal,Malawi,..) Medicines(Nicaragua,Algeria,Yemen,CD,..) Restoration Wat Phou,Laos Ta Phrom, Cambodia My Son,Vietnam Prea Khan, Combodia Small projects..1~ 2m

31 Grant Project A typical Centre for Excellences..Designing and supply for curriculum as per local needs Supply of equipment and machines and other infrastructure A Centre head and trainers (faculty) : Total three resources for two years. Development of Master Trainers at site. Overall management of the centre and coordination with host government/Indian Mission. Sustainability Stake of host Govt. Local staff empowerment and motivation Continuos mentoring and institutional linkage Revenue generation Indian Govt. Host Govt. Physical space, infrastructure like building, furniture, basic office equipment, consumables etc and day to day logistics support. Supporting technical and administrative officials/staff including master trainers Selection of trainees. Exemption from customs and all other applicable taxes.

32 Afgan Parliament

33 Work in progress Kaladan Multimodal Transit and Transport project, Myanmar

34 Afgan-India Friendship Dam

35 CEIT Peru, Ecuador

36 RGSAP, Mongolia …… Newspaper news .. about participation of Rajiv Gandhi School of Production and Art, Ulaanbaatar in an Exhbition ….. …… RGSPA is currently considered to be one of the best vocational colleges in Ulaanbaatar…

37 Solar Traffic Signal Guatemala

38 Telemedicine Network Armenia

39 Triangular CooperationTriangular Cooperation: Two or more countries cooperating to support one or more third countries Such cooperation increases the diversity in opportunities for development assistance for many countries.

40 Triangular Cooperation Driving FactorsComplementarities Financial Technical Experience of ground level solutions and scaling up of cooperation Cross border projects: Ease of operation (e.g. cooperation with International Agencies for rescue operations; restoration of affected infrastructure; building of trilateral highways) Capacity building of developmental agencies Sharing of best practices

41 Triangular Cooperation Some recent examplesUSAID In agriculture – use of Indian expertise in agricultural field for capacity building of African countries. It has helped those countries to develop, adopt and implement policies for improved food security, nutrition, small holder dairy production and marketing business model, small holder mechanization innovation, natural resource management best practices, and post-harvest technologies (such as food processors and solar dryers) Women empowerment – to build capacity in entrepreneurship, Self-Employed Women’s Association (SEWA) of India trained some 3000 Afghan women in vocational and marketing skills to help them attain economic self sufficiency. This has contributed to building the entrepreneurship capacity of India-Japan Partnership for Asia-Africa Growth Corridor

42 Triangular Cooperation Some recent examplesIndia committed to distribute high nutrition biscuits for the World Food Programme India cooperated with the US in a Police training programme and with Germany for a training programme for professionals such as doctors from third countries. In the late 50s, India and US worked together to establish: A radio network across Nepal and Afghanistan; A main road in Kathmandu and Tribhuvan Rajpath, a 130 km mountainous highway through Nepal; Tripartite agreement with the governments of Nepal and US for construction of a 1500 km road network; Tripartite telecommunication agreement among the governments of Nepal, US and India to improve telecommunication between Kathmandu and New Delhi and Kolkata, and to provide Nepal with an efficient internal telecommunication system.

43 Trilateral CooperationIndia is also working with other emerging economies in South, for example under the IBSA framework for better and enhanced delivery through such collaborative efforts. At the UN, for instance, along with Brazil and South Africa, India has an active partnership with UNDP, through the IBSA Fund, which has been an extremely useful form of engaging with the UN Development system for the overall benefit of South-South cooperation.

44 Thank You