Financial management of forestry in Mozambique

The Finnish support runs from 2009 to 2014 with a frame of EUR 11.4 million for the technical assistance component. The Finnish consultancy firm Indufor is in charge of the this, leaving about EUR 4 million to be channelled through Financial Management Agency. This agency will handle two levels of implementation: central level funding of activities of the National Directorate of Forests and Wildlife that are defined as policies, strategies and annual workplans; and provincial level funding through the Provincial Directorate of Agriculture of approved activities according to annual workplans for Niassa, Nampula, Cabo Delgado and Zambezia.

The financial management agency will provide monitoring of the programme accounts, procurement oversight, capacity development and related advisory services to the forestry programme. The arrangement will be valid for 2.5 years from February 2012 to July 2014.

In addition to responsibility for channelling funds, the agency will provide capacity building support in public financial management and computerized budgeting, accounting and payment at central and provincial levels. It will provide training on budgeting, accounting, expenditure and financial reporting systems based on identified needs.

The agency will ensure that accountability for fund management is embedded into the Finnish-supported forestry sector programme through adequate accounting and reporting.

Governance systems should also be strengthened through a transfer of capacity from financial management agency to the national forestry directorate and the provinces and specific training is provided on public financial management.

The agency’s activities are to be completed on time and as outlined in the work plan. The deadline for the submission of tenders is January 4, 2012.