The project under evaluation represents a continuation, refinement and extension of two projects, namely MOZ/93/C01 ‘Local Development Fund Programme in Nampula Province’, (1995-1998) and MOZ/98/C01 – MOZ/98/001, the ‘District Planning and Financing Project in Nampula Province’ (1998-2001).

The reason for the continuation and extension of the latter was due to the interest of UNCDF and other donors in extending the experiences gained to all districts in Nampula Province and replicating the Nampula experiences in other provinces. There was a common interest, too, of the GoM, UNDP/UNCDF and other donors to sustain the National Programme on Decentralised Planning and Finance, based in the DNPO. Project preparation started with the MTE of the previous Project MOZ/98/C01 – MOZ/98/001) in mid 2000, which recommended that the project be continued into a second phase to ensure the consolidation and sustainability of the results achieved.

On this basis a Project Identification Mission was fielded in June 2000. The main result was a Project Concept Paper (PCP) for Nampula only. Following the PCP, the Government of Norway, through NORAD, indicated a strong interest in supporting a flexible replication of the Nampula experience in Cabo Delgado Province. This received a positive response from UNCDF and the Cabo Delgado Provincial Government as well. Following broad approval of the PCP, a Project Formulation Mission was fielded by UNCDF in November-December 2001.

The principle outcome of this exercise was that phase II of the project would have three related but distinct components: (1) the consolidation and deepening of the Nampula pilot project, (2) the flexible replication of the Nampula experience in selected districts in Cabo Delgado, and (3) direct technical support for the development of the national PPFD programme.

During 2002-2003 following the start of the phase II it became clear that there were in fact still 2 projects. This led to discussions between the UNCDF and UNDP about the effective integration of the two projects into one single project. This was finally agreed on the basis of an Amendment to the PRODOC of 2002 by a mission in September 2003.

The expected practical consequences of this integration were to integrate PPFD Nampula, PPFD Cabo Delgado and the former UNDP project in DNPO into a single PPFD project with (1) one integrated management structure, (2) one integrated and mutually supportive log-frame, and (3) one single integrated budget.