Resource Mobilization in the Public Sector

• Meaning and scope of resource mobilisation;
• Resource mobilisation versus fundraising;
• Financial and non-financial resources;
• Domestic, external, public and private sources;
• The public-sector resource mobilisation ecosystem;
• Relationship between policy priorities, planning, budgeting and mobilisation;
• Fiscal space and the financing gap;
• Revenue mobilisation versus expenditure efficiency;
• Principles of sustainable, equitable and responsible financing;
• The political economy of public-sector resource mobilisation;
• Why technically sound mobilisation initiatives may fail politically;
• Effects of debt, informality, economic shocks and climate change;
• Aligning resource mobilisation with national development plans, Agenda 2063 and the Sustainable Development Goals;
• The “resource mobilisation cycle”:
• Diagnose;
• Prioritise;
• Package;
• Identify sources;
• Engage;
• Negotiate;
• Secure;
• Implement;
• Account; and
• Sustain.

• Connecting institutional mandates to financing requirements;
• Translating strategic plans into costed priorities;
• Funding-gap analysis;
• Historical revenue and expenditure analysis;
• Identifying unfunded and underfunded mandates;
• Resource mobilisation capacity assessment;
• Institutional strengths, weaknesses, opportunities and threats;
• Political, economic, social, technological, legal and environmental analysis;
• Mapping fiscal, donor and investment trends;
• Developing realistic resource mobilisation targets;
• Diversifying the funding portfolio;
• Short-, medium- and long-term mobilisation options;
• Clarifying roles between leadership, finance, planning, technical and partnership units;
• Establishing a resource mobilisation coordinating mechanism;
• Preparing an institutional resource mobilisation strategy;
• Linking the strategy to the Medium-Term Expenditure Framework and annual budget;
• Strategy approval, implementation and periodic review.

Practical tools

• Institutional resource mobilisation scorecard;
• Funding-gap template;
• Resource-source attractiveness matrix;
• Resource dependency analysis;
• SWOT and PESTLE templates;
• Resource mobilisation strategy template.

Group exercise

A draft resource mobilisation strategic framework covering

• Strategic objectives;
• Priority funding requirements;
• Potential sources;
• responsible units;
• Timelines;
• Targets;
• Risks; and
• Performance indicators.

• Categories of non-tax revenue;
• Administrative fees, licences, permits and service charges;
• Royalties, rents, dividends and concessions;
• Fines and penalties;
• Revenue from natural resources;
• Public land and property income;
• State-owned enterprise dividends;
• User charges and cost recovery;
• Pricing public services;
• Differentiating commercial, regulatory and social services;
• Protecting vulnerable service users;
• Inventorying and valuing public assets;
• Underutilised and idle public assets;
• Leasing, concessions, co-location and commercial use;
• Government intellectual property and public data;
• Naming rights, advertising and sponsorship;
• Digital payment and revenue collection;
• Preventing cash leakage and unofficial charges;
• Reviewing outdated fees and tariffs;
• Ring-fencing and revenue retention arrangements;
• Legal and ethical limits on commercialisation;
• Revenue reconciliation, reporting and audit.

By June 2013

• All-of-Government contracts had generated approximately NZ$75.4 million in accumulated savings;
• Agencies realised NZ$41.7 million in savings in the 2012/13 financial year; and
• The administration fee supported repayment of capital advanced for the programme.

Resource mobilisation mechanism

• Upfront repayable public investment;
• Administration fee based on framework utilisation;
• Collective purchasing;
• Savings-financed repayment.

This is a useful model for financing

• E-procurement systems;
• Electronic catalogues;
• Framework-agreement units;
• Procurement analytics platforms; and
• Central supplier-management systems.

• The relationship between mobilisation and expenditure management;
• Spending reviews;
• Value-for-money analysis;
• Public expenditure tracking;
• Programme-based budgeting;
• Linking expenditure to results;
• Payroll controls and ghost-worker elimination;
• Procurement savings;
• Framework agreements and strategic sourcing;
• Contract management;
• Preventing cost overruns;
• Reducing duplication across government;
• Shared services;
• Energy and utility savings;
• Digitalisation and process automation;
• Managing arrears;
• Subsidy targeting;
• Identifying low-priority and ineffective programmes;
• Reallocating savings to strategic priorities;
• Measuring cashable and non-cashable savings;
• Safeguarding service quality during expenditure reductions.

Resource mobilisation mechanism

• Central electronic marketplace;
• Online auctions;
• Wider bidder participation;
• Digital audit trails;
• Competitive price discovery.

An e-auction system can

• Increase disposal proceeds;
• Reduce opportunities for collusion;
• Standardise disposal procedures;
• Produce national disposal data; and
• Lower auction-administration costs.

Case Study 2: Uganda’s Public Asset Disposal Mandate

• Vehicles;
• Machinery;
• ICT equipment;
• Furniture;
• Scrap material;
• Surplus stock; and
• Other obsolete or unserviceable assets.

Resource mobilisation mechanism

• Competitive public auctions;
• Electronic auctions;
• Transfer between public institutions;
• Sale of recyclable material;
• Proper valuation and reserve prices.

Public bodies frequently lose revenue because

• Asset registers are incomplete;
• Disposal is delayed until assets have little value;
• Assets are undervalued;
• Employees receive preferential access;
• Auctions are insufficiently advertised; and
• Disposal proceeds are not reconciled.

New Zealand Government Procurement manages collaborative contracts for

Resource mobilisation mechanism

Lessons

• Properly calculated;
• Verified;
• Cashable or budget-releasing;
• Attributable to procurement action; and
• Available for reallocation to priority services.

• The changing aid and development-finance landscape;
• Bilateral and multilateral development partners;
• Grants, concessional loans, technical assistance and blended facilities;
• Restricted versus unrestricted financing;
• Country strategies and funding windows;
• Understanding donor priorities and funding cycles;
• Donor intelligence and opportunity scanning;
• Building a funding-opportunity database;
• Partner eligibility and compliance requirements;
• Preparing expressions of interest;
• Developing concept notes and proposals;
• Results frameworks and theories of change;
• Developing realistic budgets;
• Demonstrating value for money;
• Co-financing and counterpart-funding requirements;
• Fiduciary, environmental and social safeguards;
• Negotiating financing agreements;
• Donor coordination and avoiding fragmented projects;
• Absorption capacity;
• Reporting, evaluation and grant close-out;
• Transitioning from donor dependency to sustainability.

Case Study 1: Rwanda’s UMUCYO E-Procurement System

Resources mobilised

• Technical expertise;
• System-development assistance;
• Training;
• Change-management support;
• Procurement-system assessments; and
• Support for continuous improvement.

Lessons

Development-partner-supported public financial management programmes

• System-development support;
• Onboarding of procuring entities;
• Training;
• Implementation monitoring;
• Institutional-capacity development; and
• Integration with other public financial management reforms.

Lessons

• Development-partner funding should be aligned with one government- owned roadmap.
• Separate partners should not finance incompatible procurement systems.
• The government must budget for hosting, cybersecurity, support and future upgrades.
• Mandatory-use directives must be accompanied by user support and supplier onboarding.

• Difference between a policy idea, programme and bankable project;
• Project identification and screening;
• Strategic relevance;
• Problem and options analysis;
• Demand and needs assessment;
• Technical feasibility;
• Economic and financial appraisal;
• Cost-benefit and cost-effectiveness analysis;
• Affordability analysis;
• Revenue models;
• Life-cycle costing;
• Environmental and social assessment;
• Gender and inclusion;
• Climate-risk assessment;
• Land and resettlement considerations;
• Institutional and implementation capacity;
• Procurement strategy;
• Legal and regulatory readiness;
• Financial modelling;
• Funding and financing structures;
• Project preparation facilities;
• Investor-ready documentation;
• Establishing and managing a project pipeline;
• Gateway reviews and project prioritisation;
• Avoiding politically attractive but financially unviable projects.
• Why governments use PPPs;
• PPP as a private sector financial mobilization tool

Institutional output

Facility

It supports activities such as

• Feasibility studies;
• Transaction advisory services;
• Financial modelling;
• Legal structuring;
• Project documentation; and
• Procurement support.

Resource mobilisation mechanism

• Public project-preparation funding;
• Development-partner support;
• Recovery of project-development costs;
• Revolving-fund approach.

Procurement authorities could support a similar facility for

• Complex infrastructure procurement;
• PPP preparation;
• Strategic sourcing initiatives;
• Feasibility studies;
• Market sounding; and
• Specialist transaction advice.

Producer Procurement Programme

Its procurement design included

• Standardised procurement documentation;
• Clearly defined qualification requirements;
• Competitive price bidding;
• Long-term power-purchase arrangements;
• Bid windows;
• Independent evaluation;
• Developmental requirements; and
• Defined government responsibilities.

Resource mobilisation mechanism

• Private equity;
• Commercial debt;
• Development-finance participation;
• Competitive concessions;
• Long-term purchase commitments.

Lessons

Key requirements include

• Policy certainty;
• A credible procuring institution;
• Bankable contracts;
• Transparent evaluation;
• Predictable procurement timelines; and
• Appropriate risk allocation.

• Climate mitigation, adaptation and resilience;
• Climate-finance architecture;
• Green Climate Fund;
• Global Environment Facility;
• Adaptation Fund;
• Climate Investment Funds;
• Multilateral development banks;
• Green, blue and sustainability bonds;
• Sovereign and municipal bonds;
• Diaspora bonds;
• Social-impact and development-impact bonds;
• Debt-for-climate and debt-for-nature arrangements;
• Carbon markets and carbon credits;
• Payment for ecosystem services;
• Blended finance;
• Guarantees and risk-sharing facilities;
• Preparing climate rationales;
• Climate additionality;
• Measuring mitigation and adaptation results;
• Gender-responsive climate finance;
• Environmental integrity;
• Avoiding greenwashing;
• Debt sustainability and foreign-exchange risks;
• Accreditation and institutional readiness.

The authority could partner with a green fund to finance

• Sustainable-procurement guidelines;
• Green-product catalogues;
• Life-cycle costing tools;
• Training for procuring entities;
• Green supplier development;
• Environmental contract clauses; and
• Monitoring of procurement-related emissions.

Lesson

• Stakeholder identification and segmentation;
• Mapping interest, influence and resource potential;
• Government-wide coordination;
• Relationship management with donors and investors;
• Engaging citizens and taxpayers;
• Communicating the public value proposition;
• Developing a compelling case for support;
• Evidence-based storytelling;
• Writing problem statements;
• Demonstrating urgency without exaggeration;
• Defining measurable results;
• Proposal structure and quality standards;
• Executive summaries;
• Pitch decks and investment memoranda;
• Funding requests and negotiation positions;
• Preparing for donor and investor meetings;
• Managing political and institutional messaging;
• Communication during unsuccessful bids;
• Maintaining a partner relationship database;
• Reporting results to retain partner confidence.

These include

• Digital procurement information;
• Supplier guidance;
• Training;
• Procurement support centres;
• Standard procurement tools; and
• Market-access initiatives.

Resources mobilised

• Partnerships with public institutions;
• Digital training infrastructure;
• Expertise from business-development organisations;
• Supplier participation;
• Public procurement data.

Lessons

Practical activities

• Three-minute project pitch;
• Donor-meeting role play;
• Proposal peer review;
• Development of a stakeholder engagement plan.

Kenya’s AGPO programme seeks to expand public procurement participation

• Women-owned enterprises;
• Youth-owned enterprises; and
• Enterprises owned by persons with disabilities.

Resource mobilisation strategy

Public procurement can provide targeted groups with

• Market access;
• Revenue opportunities;
• Business experience;
• Performance records;
• Improved bankability; and
• Opportunities for expansion.

However, registration and reservation policies must be supported by

• Supplier development;
• Access to finance;
• Prompt payment;
• Proportionate tender requirements;
• Prevention of fronting; and
• Monitoring of actual contract value awarded and paid.

• Governance principles for resource mobilisation;
• Public accountability and fiduciary responsibility;
• Legal mandates and delegated authority;
• Parliamentary and public oversight;
• Public procurement integrity;
• Conflict-of-interest management;
• Anti-corruption controls;
• Beneficial ownership transparency;
• Managing illicit financial flows;
• Donor and investor due diligence;
• Financial controls and audit trails;
• Fraud-risk assessment;
• Safeguarding grant and project funds;
• Transparency in concessions and PPPs;
• Public disclosure;
• Grievance and complaints mechanisms;
• Environmental and social safeguards;
• Reputational risk;
• Foreign-exchange and refinancing risk;
• Political and regulatory risk;
• Contingent liabilities;
• Cybersecurity and data-protection risks;
• Developing a resource mobilisation risk register;
• Crisis response and corrective action.

Resources mobilised

• Civil-society technical expertise;
• Private-sector technology support;
• Development-partner assistance;
• Government ownership;
• Open-source technology;
• Public procurement data.

Lessons

• Partnership can reduce the initial burden on government.
• Long-term ownership must ultimately be institutionalised.
• Open data allows citizens and analysts to supplement regulatory oversight.
• Civil-society monitoring can expand the effective oversight capacity of a procurement authority.
• Open data does not replace formal audit and enforcement.

• Moving from strategy to implementation;
• Prioritising mobilisation initiatives;
• Quick wins versus structural reforms;
• Developing annual mobilisation workplans;
• Assigning accountability;
• Mobilisation targets and milestones;
• Input, activity, output, outcome and impact indicators;
• Leading and lagging indicators;
• Measuring funds pledged, committed, received and utilised;
• Monitoring proposal conversion rates;
• Measuring revenue collection efficiency;
• Tracking partner engagement;
• Monitoring project-preparation progress;
• Evaluating cost of mobilisation;
• Portfolio diversification indicators;
• Reporting to leadership and oversight bodies;
• Resource mobilisation dashboards;
• Quarterly performance reviews;
• Adaptive management;
• Capturing lessons learned;
• Institutionalising systems, skills and relationships;
• Succession planning and knowledge management.

Suggested performance indicators

• Increase in domestic revenue;
• Increase in non-tax revenue;
• Reduction in revenue leakage;
• Value of grants secured;
• Value of private capital mobilised;
• Number and value of bankable projects;
• Proposal success rate;
• Average time taken to develop and approve a proposal;
• Percentage of mobilised resources disbursed;
• Resource absorption rate;
• Number of active strategic partners;
• Funding-source concentration;
• Cost of mobilisation as a proportion of funds secured;
• Percentage of funded projects delivering expected results;
• Compliance and audit performance; and
• Citizen or partner confidence levels.

Methodological elements

• Defined price baseline;
• Comparison of pre-contract and framework prices;
• Consideration of volume changes;
• Separation of price savings from process efficiencies;
• Consistent reporting across contract categories; and
• Periodic review of assumptions.

Lessons

To ensure implementation, the training may be followed by

• Institutional resource mobilisation clinics;
• Coaching for selected mobilisation teams;
• Review of draft strategies and proposals;
• Project-preparation support;
• Donor and investor mapping;
• Quarterly implementation reviews;
• Development of a funding-opportunity database;
• Establishment of an institutional resource mobilisation committee; and
• Annual updating of the resource mobilisation strategy.