Seven bilateral donors and the World Bank are collaborating with the Government to develop and implement an aid policy. This aid policy would focus on guidelines and procedures governing ODA agreements, technical assistance, debt and disbursement modalities in line with Zambia's PRS. Donors are committed to move towards improved aid predictability through multiyear projections and the use of appropriate aid modalities, and common planning procedures.

Donors have entered into delegated cooperation agreements. For example, Norway has delegated its support to Zambia's agricutltural sector to the Netherlands. Norway plans on entering into the same type of arrangement with Sweden.

Germany (GTZ) and the Netherlands (Ministry for Development Cooperation) have concluded an agreement for the support of the SADC Program on Biomass Energy Conservation in Tanzania, Zambia and Malawi. GTZ will administer the contribution provided by the Netherlands for the said project in addition to its own support.

Several donors meet regularly to co-ordinate the water sector reform and the EC-Water Dialogue (chaired by Germany).

Under the WHIP MoU, GoZ and development partners have agreed that the period between January and March will be mission-free ("quiet time") in Zambia.

Several donors continue to provide substantial aid outside the government budgets. The share of aid provided through direct budget support is presently small (under 15%) and is provided by a few donors. Many donors are hesitant based on fiduciary concerns.

The EC supports pooled funding in the education, health and road transportation sectors.

There are SWAps in Health & Education. Other possible areas for SWAps are water, roads and agriculture sectors.

UK will provide support to CIDA's involvement in the education SWAp.

Ireland, the Netherlands, Norway, Sweden and UK are considering providing support to Zambia's National Aids Council. Norway will carry the administrative responsibilities on behalf of the other donors.

In an effort to improve coordination of activities, donors have developed a mission calendar, which is updated on a monthly basis. Furthermore, HIP donors inform each other about courses/training sessions that are being organised, and invite each other to attend. A list of NGOs in Zambia currently receiving support from HIP-donors has also been developed. USAID has already joined while both the EC and Germany are likely to follow.

OECD/DAC Working Party has developed indicators (in a survey instrument) to monitor progress on harmonization and alignment.

This exercise coincided with the annual survey on Budget Support Alignment done by the Strategic Partnership with Africa (SPA). Six Sub-Saharan African countries (Ethiopia, Mozambique, Niger, Senegal, Tanzania, and Zambia) of the eighteen countries in the SPA survey, were also included in the OECD/DAC survey. SPA has worked with DAC to avoid duplication, so the SPA questionnaire was included within the (more comprehensive) DAC questionnaire (part D) for these six countries.

Denmark/Ireland/WB were the lead donors for the combined survey for Zambia.

A draft OECD/DAC survey report has been prepared.

Development partners involved in the JASZ include Canada, Denmark, EC, Finland, Germany, Ireland, Japan, the Netherlands, Norway, Sweden, UK, the UN family (14 UN agencies present), the World Bank and (recently) the AfDB. IMF and USAID are participating informally as indications are that they cannot sign the JASZ for legal reasons. JASZ is a response to the government-led NDP, with full transparency and consultation. It is expected to replace the individual donor strategic plans. The schedule for JASZ completion is January 2006.

In accordance with the MoU, a JAS working group was established with representatives from Denmark, Norway and the WB. Representatives from Minsitry of Finance were assigned to the group. This informal steering committee prepared a roadmap in March 2005 which was discussed among the development partners and the government. The roadmap emphasizes that the JAS is an addendum to the NDP (the primary vision and planning document for Zambia).

In the early stages of the JASZ process, there were various preparatory studies done. One of which included a mapping of the current strategy processes donor by donor (April 2005) and a questionnaire based assessment of comparative advantages of the active donors. This resulted in a first proposal of a division of labor among the donors for 2006-2010. This proposal was discussed in Lusaka and a final report of the assessment was issued. Draft generic terms of reference for the lead donors’ role were subsequently prepared and circulated. The Government prepared a draft aid policy in May 2005 with a revision in September.

Danida, EC and DG Development commissioned COWI to do an independent background study on the Joint Assistance Strategy (JAS) process in Tanzania, Uganda and Zambia. Preliminary study results were presented at a DG Development debriefing in Brussels on August 30, 2005. The final report will be presented at a technical seminar in Brussels on October 26-27, 2005. The study, based on desk reviews of documentation and some in-country consultations with development partners and government representatives, captures the experiences (so far).

The Public Expenditure Management and Financial Accountability Review (PEMFAR) was completed in June 2003, with support from DFID, the EC, IMF and Japan. DFID provided funding for some consultants. The EC shared its audit of financial management on EU projects and made the relevant consultant available to contribute additional research and analysis to the CFAA. The task team included IMF staff and funding from Japanese grant was utilized.

In 2004, a CEM was completed with IFPRI on the task team and financial support from Norway supporting PSIA for the report.

Donors work towards joint analytic work and increased information sharing.