The Road to the SDGs

X Although the operating costs of adopting a decentralised model are significant, it is expected that the potential financial benefits from improvement in project execution resulting from decentralisation will exceed the incremental operating costs associated with it. X IsDB will undertake coordinated interventions that catalyse investments by private companies, philanthropic organisations, individuals, governments, non- governmental organisations and civil society organisations. X The new focus on RHs empowerment reflects a shift in the planning processes of IsDB, as seen in IsDB’s new IWP. The IWP has been introduced to replace annual programming exercises, thus allowing more time and resources for developing projects. X IsDB is also carrying out dynamic programming exercises with the aim of enhancing the quality of the project pipeline. X To bring services closer to MCs, IsDB has deployed procurement specialists in RHs. X Given low procurement capacities in some MCs, affecting project implementation and delivery, IsDB has also organised capacity-building training for MC staff in ministries, departments, executing agencies and project management units of IsDB-financed projects. X To facilitate operational delivery in line with the GVC-based MCPS approach, IsDB will further scale up decentralisation initiatives in Regional Hubs during the period 2021–23. ACHIEVEMENTS X To date, significant achievements in decentralisation have been made, resulting in the successful delivery of 8 operational RHs that have improved the visibility of IsDB, spearheaded the delivery of the COVID-19 SPRP operations and improved the implementation of the regular operations portfolio in MCs. In this regard, 70% of all operations staff have already been posted in the field in RHs and the average portfolio age is expected to decrease significantly to 5.4 years by 2023 due to increased field presence. X A digital portal launched in 2019 for all operational business processes has significantly improved staff awareness of the new business model and will drive the optimisation and reengineering of operational business processes in the COO Directorate. X Three major corporate dashboards have been introduced to track progress on decentralisation initiatives, operational targets and service-level agreements. X Development and rollout of critical guidelines architecture related to decentralisation was completed in 2019, resulting in approval of six critical policies governing RHs management. INVESTMENT X The financial benefits far exceed the projected incremental costs from decentralisation, which comprise one-time set-up costs of US$ 8.6 million and annual incremental operating costs of US$ 13.8 million. X Office facilities and IT infrastructure upgrade projects have been completed in all RHs within the budget allocated, with savings of US$ 708,000. E X P E D I T I N G T H E P R O J E C T L I F E C Y C L E T O I N T E R N A T I O N A L S T A N D A R D S Financial benefit of US$57 million E N H A N C E D D I G I T I S A T I O N A N D S I M P L E R B U S I N E S S P R O C E S S E S 15% reduction in RHs’ operating expenses [ 187 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S