aid accounts & audit division government of india website:
TRANSCRIPT
Aid Accounts & Audit Division
Government of India
Website: www.aaad.gov.in
Outline
• Part A• Details of External Assistance
• Part B• Functional aspect
Part – A
GOI policy on External Assistance• Guide lines issued in 2005 on Bilateral Assistance emphasize
reduced reliance on external assistance
• Bilateral Assistance accepted only from G-8 countries and EC; tied aid not accepted.
• Channelization of external assistance from smaller partners (other than those mentioned above), through multilateral organizations to promote greater aid harmonization
• Countries can provide bilateral development assistance directly to autonomous institutions, universities, NGOs, etc.
Facts• GOI o/s External Sovereign Debt as on 31st March 2012
at US $ 63.37 Billion• 2011-12: Receipts at US$ 5.14 (US$ 4.57 Loans and
US$ 0.56 grants) Billions and repayment at US$ 3.35 (Principal US$ 2.67 and interest & commitment US$ 0.68) Billion
• 2012-13: Receipts estimated at US$ 5.44 (US$ 4.90 Loans and US$ 0.54 grants) repayment at US$ 3.74(Principal US$ 2.99 and interest &commitment US$ 0.75) Billion
• External sovereign debt as %age of GDP for 2011-12: 3.62%
Bilateral Donors
Donor Disbursements During 2011-12 (Loans on Govt. Account)
Debt OutstandingAs on 31st March 2012
Japan 1,185.38 14,995.32
Germany 292.58 2,701.58
Russian Federation 7.05 1,364.62
France - 325.29
USA - 297.64
Switzerland - 3.57
Italy - 0.37
Total 1,485.39 19,685.39
All figs. In millions of US Dollar
Multilateral Donors
Donor Disbursements During 2011-12 (Loans on Govt. Account)
Debt OutstandingAs on 31st March 2012
IDA 1,453.66 26,853.06
IBRD 619.68 8,896.47
ADB 976.26 7,568.20
IFAD 27.99 326.17
OPEC 3.31 14.12
EEC 27.65Total 3,080.9 43,685.67
All figs. In millions of US Dollar
Maturity Profile and Terms of LoansDonor Type of Interest Grace Period Maturity Remarks
ADB LIBOR + Spread 0-5 years 15-25 years LIBORRange 0.40 to 5.54For last 10 years
IBRD LIBOR + Spread 5 years 18 years
IDA @ Fixed 0.75% 10 years 35 & 25 Years
1.25 %
Japan * Fixed 0.01 to 4.25%
10 years 30.5 & 40.5 years
0.55, 0.65 and 0.75 for Environment Projects with 40 years maturity
Germany **
Fixed 0.75 to 5.50%
5-10 years 15-50 years
IFAD Fixed 0.75% 10 years 40 years
Note: Does not include other charges such as commitment fees* 0.01% for Consultancy and 0.65% for environmental.** Current being 0.75% for treasury portion and 2.49 % for bank portion.@ New IDA terms and conditions: Under Blend/Harden Terms apart from Service fee of 0.75% Interest Rate of 1.25% will be charged
Commitment ChargesIndicates cost incurred on undisbursed amount: slow moving projects bear greater liability.
Note: * Commitment Charges are not levied on the agreements signed after 16.05.2007.** At present commitments charges have been fully waived.*** Commitments Charges are on the agreements signed after 01.10.2007 and arrears
paid during FY 2010-11.
Donor (rate) 2007-08 2008-09 2009-10 2010-11 2011-12
ADB (0.15%) 15.57 12.38 11.81 9.83 8.30
IBRD (0.25%)* 8.83 7.03 6.05 4.17 2.73
IDA (0.50%)** 6.17 2.97 - - -
Japan (0.10%)*** - - - 5.20 4.09
Germany (0.25%) 0.43 0.82 1.23 5.99 1.22
US $ in million
Currency Composition of Outstanding Stock
Indicates debt stock as on 31st March 2012
Inflow/outflow on indicated currency except SDR
40.65
31.87
21.43
5.67 0.38
Spl. Drawing Rights DOD = 40.65% (IDA, IFAD)
US Dollars DOD =31.87% (IDA, IBRD, ADB, Russia USA)
Yen DOD=21.43% (Japan)
Euro DOD = 5.67% (Germany, France, Italy)
Others DOD= 0.38% (Switzer-land, EEC(SAC), Russia)
Interest rate breakdown of Outstanding
Variable rates are applicable for ADB and IBRD loans (as per Libor).
74% of Debt Stock is at fixed rate.
48.32
17.61
7.76
0.46
25.85 0 to 0.75%
(IDA, Germany, Japan, IFAD)
0.76 to 2.50%(Japan, France, IFAD, OPEC, USA)
2.51 to 4.00%(Japan, France, Germany)
Above 4%(France and Germany)
USD 6 Months LIBOR(IBRD and ADB)
Interest Range wise %age of Outstanding
Part – B
Functional Aspects
Part A: Process – Loan agreement– Disbursements (Reimbursement and Direct)– Debt servicing– External assistance budget – Imparting training to project authorities
Part B: Reporting – Brochure– MIS reports for project management– Data submission to World Bank for publication in Global Development
Finance (GDF)– Data for Template on International Reserves and Foreign Currency
Liquidity– Special Data Dissemination Standards (SDDS) reporting– Responsible for reconciliation of External Debt with International
Agencies
Functions of AAAD
Coordination with various agencies
AAAD
MoFCredit
Div./Department of Expenditure
State Govt.
RBIProject Authority
Donors/ External Agencies
Commercial Banks
Dynamics at AAAD• 18 donors with varied systems and procedures
• Around 1165 active loans/grants
• Maintenance of two Websites – caaa.gov.in for users only and aaad.gov.in in public domain
• Maintenance of debt records in loan currency and INR
Role of BorrowerMinistry of Finance (DEA)
(Multilateral Institutions and Bilateral Cooperation Divisions)
Facilitates Appraisal Processing and Negotiations Signing of Agreements Causing agreements to take effect Follow up of project implementation and monitoring Coordinating mid-term review and completion report to
donor All other actions relating to Agreements viz. Amendments,
Reallocation, etc.
Role of Project Implementing Authority Helps in project appraisal Signing project agreement Ensuring proper procurement procedures acceptable to donor Responsible for all project activities and sending periodical
reports to donor Maintaining proper accounting records based on sound
financial management Responsible for preparing reimbursement claims and sending
the same to Aid Accounts & Audit Division, New Delhi Ensuring timely audit of accounts and reports to donor by
due date Prepare completion report of the project identifying further
phase of the project where donor can finance
Role of Central Bank towards External Aid
Repository of all Foreign Currencies Inflows INR equivalent of Foreign Currency Flow from
External Aid is passed on to the Credit of CAA&A Maintenance of Loan-wise Special Account in
disbursed currency for the advance/deposits received from Donors.
Coordinating with CAA&A for sending External Debt data to Donor and other institutions.
Providing Exchange Rate for Government transactions of major Foreign Currencies to AAAD on daily basis
Project Financing
BudgetingStep-I Annual Requirement of Rupee resources the
expenditure of the Project to be approved by the Planning Commission.
Step-II Inclusion of the funds requirement in the Annual
Budget of the Government.
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PROJECT CYCLE
Negotiations (Donor & Govt.)
Appraisal By Donor
Proposal To Donor
Identification By Govt.
Evaluation by Donor
Completion Report
Project Completion
Project Execution
Declaring the AgreementEffective
Financial Agreement Donor –- GOI Project Agreement Project State – Donor
1 Loan Agreement to be declared effective
2 Procurement Procedures as laid down in the agreement to be followed.
3 Authorized signatory to withdraw funds (CAAA)
4 Authorized Signatory to sign claims (PIA)
5 Participatory Agreements to be entered into between Government of India / State Government and the Project Executing Agency, if applicable.
6 Submission of audit certificate by the prescribed date.
CONDITIONS PRECEDENT TO DISBURSEMENT
Expenditure Budget of P.I.A.
Claims
A.A.& A Div.
For Claims Under Revolving Fund For Claims Outside Revolving Fund
Donor RBI Mumbai
A.A.& A. Div.
Statement
Disbursement to CAA&A Account
P.F. Div. of D.O.E
PAO Expenditure RBI, C.A.S. Nagpur
State Govt. Account- Credit
P.I.A. : Project Implementing AgencyP.F. : Plan FinanceD.O.E. : Department of ExpenditureC.A.S. : Central Accounts Section
Through Local office
Disbursement Flow Chart- Reimbursement
Disbursement Flow Chart- DirectProject Implementing Agency
AA&A Div.
Donor office in India/ Head Quarters
Advise AAAD
Direct Payment to Payees Account
Recommendation of ACA to Department of Expenditure
RBI, C.A.S. Nagpur
State Govt. Account- Credit/Debit Credit AAAD Account
System supported activities
Claim HandlingDisbursements
Additional Central Assistance
Donor’s DemandRepayment Sanction
Recording of Repayments
Budget PreparationBrochure Generation
MIS
Interface with CS-DRMS
Loan Agreement
DisbursementProcess
RepaymentProcess
CompilationProcess
DebtManagement
Consolidation& Compilation
PortfolioAnalysis
For more information, please refer to our website: aaad.gov.in