This is a requirement. A possible interpretation would be that before making a decision -- and God knows hundreds if not thousands are made each year -- to provide development assistance, consultations must take place beforehand. The consultation process can be quite demanding. Moreover, it has to include civil society and international agencies.
This provision is incomplete. It excludes several stakeholders such as foreign countries and provincial governments, in case we wish to consult them. According to this provision, the definition of the people to consult is somewhat narrow.