National HIV and AIDS/STI/TB Council Zambia

The Project 

The National HIV and AIDS/STI/TB Council (The National AIDS Council (NAC)) was established by an Act of Parliament in 2002 to coordinate the national HIV/AIDS response. One source of funding is the Joint Financing Arrangement (JFA) agreed in 2007 between Government of Zambia and eight Cooperating Partners (USA, UK, UN, Sweden, Netherlands, Norway, Ireland and Denmark).  The JFA is a co-ordinating mechanism which aims to reduce transaction costs and to promote effectiveness and efficiency in the operations of NAC. The first JFA was signed in 2005 with the support of $5million and ended in 2007 when the current JFA was signed giving NAC increased financial commitment for the period 2007-2009. Irish Aid is the lead donor. Norway has contributed with NOK 12 mill (approximately US $ 2 mill) for the period 2008-2010.

Interesting Findings

• There is clearly disappointment on the side of the Cooperating Partners that the JFA has not reduced the transaction costs of supporting NAC and the national HIV response. The Joint Financial Arrangement is supposed to promote harmonised working amongst Cooperating Partners and reduce transaction costs for Cooperating Partners and the National AIDS Council (NAC). It is clear that this has not been achieved thus far.
• Cooperating Partners have become frustrated by weaknesses in NAC reporting and planning and have reacted in varying ways resulting in disharmony and breaking of ranks. The focus of communication has been diverted from issues of policy and achievements of the response to issues of what is perceived as weak business management within NAC.
• The review team concluded that there had been insufficient investment of Cooperating Partners technical support for NAC to ensure systems and processes were sufficiently robust in order to bring about a reduction in transaction costs and increase efficiency in delivering results. The failure to do so has also inevitably increased the transaction costs for NAC as well and raised NAC levels of disappointment with the working of the JFA. Cooperating Partners disputed plans, budgets and reports without providing clear guidelines as to what was required.
• However the basic architecture of the JFA is sound and the potential is there for improvements. But reduced transaction costs will only be achieved after investment in technical support to ensure the foundations of the aid modality are solid.
• In terms of management and financial systems it is clear that the NAC has come a long way since its outset. Financial control seems sound and much work has been done in bringing external audit up to date. But in any organisation and especially one that operates in a constantly changing environment there is always more to be done, it cannot stand still. The JFA planning and budgeting timetable must conform to the Government of Zambia’s timetable and partners have to adjust their own arrangements to suit.