Local Authorities Support Programme « PACT » (III)

Detailed description of project:

The present project is the third phase of the German Financial Cooperation’s (KfW) and the Malian government’s joint project for supporting communal authorities and administrations in local development and decentralization. The overall objective of PACT is to empower local governments in Mali to assume their role in promoting local development and thereby improve the living conditions of the population. The implementing agency of the project is ANICT (Agence Nationale d’Investissement des Collectivités Territoriales), the public authority in charge of managing the Malian municipal support fund FNACT (Fonds National d’Appui aux Collectivités Territoriales). Through FNACT, local governments obtain governmental subventions according to an allocation formula based on performance criteria. These criteria have been established in a transparent manner and are outlined in ANICT’s Manual of Procedures.

Through FNACT, local governments obtain subventions for a) financing the establishment, Operation and Maintenance (O+M) of social, economic and cultural infrastructure; and b) implementing capacity building measures for locally elected representatives and municipal administrative personnel.

The project co-financed by KfW and the Malian government is based on three main areas of intervention:

  1. Financing governmental subventions for investment through the FNACT: The intended results of this area of intervention is to ensure the continuity of financial support to local governments for implementing priority infrastructure as identified in the official development plans (PDESC). The resources provided (to the FNACT) by the government and donors are not bound to any specific geographical or sectoral targeting criteria.
  2. Operation and Maintenance (O+M): This area of intervention aims at supporting local authorities in maintaining their infrastructure in order to ensure the sustainability of the investments. This includes developing a maintenance programme and financial support for its implementation.

Strategic support and technical assistance: This intervention area includes (i) financing a fund for studies and pilot interventions to be carried out by ANICT; (ii) technical assistance to ANICT for a) its institutional development; b) the implementation of studies and pilot actions to ensure sustainable operation and maintenance of infrastructure (axes no.1 and 2) and c) other fields relevant to local development and decentralization in Mali.

Type of services provided:

Technical assistance to ANICT and local governments relates to the following aspects:

a) Development of the FNACT instruments:

  • Technical assistance to regional ANICT offices in establishing a sustainable system for quality control of the services delivered by service providers for feasibility studies, detailed technical designs, construction activities and construction supervision;
  • Facilitation of the dialogue between ANICT and its technical and financial partners for FNACT’s strategic development which will allow for improved utilization of all available financial instruments for financing local development.


b) Improvement of operation and maintenance of communal infrastructure:

  • Support the preparation and implementation of a study on operation and maintenance of communal infrastructure;
  • Support the preparation of an action plan and the implementation of pilot actions for improving operation and maintenance;


c) Implementation of pilot interventions on the communal level to support the national reconciliation process in the aftermath of the violent events in 2012:

  • Support the verification and prioritization of investment projects resulting from the facilitation of participatory reconciliation and planning exercises;
  • Support the contracting of service providers for feasibility studies, detailed technical designs and technical supervision;
  • Support the contracting of service providers for construction;
  • Assist with the implementation of the payment approval process;
  • Support the evaluation of the approach in order to identify possibilities for scaling-up the use of the available FNACT instruments (see above).


d) Support to project management:

  • Identify and mobilize short-term experts;
  • Review and adaptation of the TA’s internal Manual of Procedures;
  • Co-management of the investment budgets in line with KfW rules and regulations for disposition funds (11.5 million euros);
  • Elaboration of progress reports.
BMZ through KfW
05/2013– 07/2018
Contract value: 1,542,200 €