Support and monitoring of bilateral cooperation projects in El Salvador

Cooperation between Luxembourg and El Salvador entered a new phase in which projects financed by Luxembourg are directly executed by the partner country. The logic of intervention entrusted to LuxDev is to provide the Luxembourg Ministry of Foreign and European Affairs (MFEA) as well as Salvadorian institutions responsible for implementation of bilateral projects with a technical assistance mechanism for the supervision and monitoring of projects.

The project of Support and Monitoring of Bilateral Cooperation Projects in El Salvador establishes monitoring mechanisms that will allow Salvadorian institutions to improve their management of bilateral projects and increase implementation effectiveness. It also has a role in representing Luxembourg Development Cooperation in El Salvador and liaising with the Embassy in Managua. The role of LuxDev therefore consists of supervision and direct support from Luxembourg to El Salvador, focusing on administrative and financial aspects.

Such a national execution-based approach is not without precedent as it was already utilised in the framework of the Support to implementing the Aid Effectiveness Agenda in El Salvador project, which served the Vice Ministry of Development Cooperation (VMCD) in implementing its programme for development effectiveness. The approach was also adopted for the first Grant Fund initiative financed by the Luxembourg Government and executed by the VMCD as well as the first projects implemented by FUNDE with funding from the MFEA.

National execution is a big step forward in terms of ownership and alignment with national policies and strategies for the Salvadoran Government. This can also stimulate results-oriented management, as there is a need for performance assessment frameworks and improved resource management. Results-oriented management is in part an important objective of fiscal reform undertaken by the Government of El Salvador. The 2017 budget, which will be established during 2016, will follow this approach.