Presentation on theme: "Implementation Modalities"— Presentation transcript:
1Implementation Modalities ‘ReminderContracting proceduresEDF can be implementedIn direct implementation by the EC or its DelegationsThough delegation of financial and contractual authorityThree kindsof contracting :works contractsService contractsSupply contractsCompetitive bidding processTwo (main) methods of delegation of financial and contractual power :Programme EstimatesGrantsCompetition comparing capacitycomparing proposals
2Implementation Modalities Contracting proceduresGrantsDelegation of Power (at 2nd level)From programme estimate manager to beneficiary of grant contractEmpowers for financial and contractual issuesFollow up of procedures and financial reporting remains obligationAdministrator is fully responsibleIn grants there are also 3 kinds of contracting :works contractsService contractsSupply contracts
3Implementation Modalities Contracting proceduresContracting grantsThrough calls for proposals – restricted– openAnalyse – comparison on the basis ofCapacity analyse (financial and operational)Relevance of the proposalImplementation methodologySustainability of the investment madeCost effectiveness of the proposed budget and of co-funding
4Better governance at local level Case study: PNG Grant facility to strengthen Districts and LLGsBetter governance at local levelProcedures and mechanisms of the Grant FacilitySubjectWHAT: A grant facility to support proposals of districts and LLG’sWHEREFORE: Reinforcing their functioning and to improving governance.HOW: Six monthly open calls for proposalsGRANTING: predefined limited numberSELECTION: Proposals ranked on objective criteriaAWARDING Limited number: only the best proposals.RESULTS: Details of the selection and the awarded proposals will be communicated to all the districts.NEXT CALL Not successful districts can represent an enhanced copy
5Better governance at local level Procedures and mechanisms of the Grant FacilityObjectives of the fundingAssuring sufficient know-how for the execution of the required tasks, and for increasing accountabilityRehabilitate and/or construct physical infrastructures and basis services to make the work and living conditions sufficient attractiveImproving of basic infrastructure, equipment and means for the administrative functioningAssure communication with lower and higher level governments, administration and the Civil Society for appropriate decision making and budget implementationAssure proper functioning of the Ward Development Committee, the Lower Level Government, the Joint District Planning and Budget Priorities Committee, the Joint Provincial District Planning and Budget Priorities Committee.
6Better governance at local level The District and Local Level Government Grant FacilityProcedures and mechanisms of the Grant FacilityWhat are we speaking aboutObjectives of the fundingMain specificitiesThe principles of the District and Local-level Government Grant FundingThe different stakeholders and their roles in the different sequencesSubmissions of proposalsEvaluation of Proposals and grant awarding processesImplementation of Grants and Reporting
7Better governance at local level Case study PNG Enforcement of District and LLGBetter governance at local levelCall for proposals No 1Procedures and mechanisms of the Grant FacilityMain PrinciplesA minimum counterpart funding of 15%Successive six-monthly calls for proposals will include a fine-tuned description ofthe grant system, number of grants, deadline etcthe detailed submission proceduresthe competitive selection process, inclusive the evaluation criteria
8Better governance at local level Procedures and mechanisms of the Grant FacilityMain PrinciplesA transparent selection system inclusive:Administrative compliance Yes or NoEligibility criteria yes or noEvaluation Criteria ranking of proposalsEvaluation committee Awarding of grantsSignature of grants contracts
9Better governance at local level Procedures and mechanisms of the Grant FacilityMain PrinciplesFunding\implementation in stagesfirst instalment advance of 40%achievement of 40% milestonessecond instalment of 40%Achievement of EU investmentPayment of outstanding 20%
10Better governance at local level The District and Local Level Government Grant FacilityProcedures and mechanisms of the Grant FacilityStakeholdersThe applicantThe Beneficiary of a District and LLG GrantThird PartiesThe Project Team of the DPLGAThe Grant Selection Committee
11Better governance at local level Procedures and mechanisms of the Grant FacilityStakeholdersThe applicantDefinitionAny of the 83 rural districts, including their LLG’s,Represented by the District Administrator,Not beneficiary from another EU funded grantActivities in the proposal preparation process:Seek for possible collaboration with non state actors (members of the Civil Society) and involvement of other projectsPreparation of the application (proposal), preferably in agreement with the Provincial Administration and, if applicable with line departmentsSubmission of the grant proposal to the DPLGA
12Better governance at local level Procedures and mechanisms of the Grant FacilityStakeholdersThe Beneficiary of a District and LLG GrantDefinitionDistrict awarded by a grant for having presented one of best proposalsinclusive its Local-level Governments,its administration,its LLG’s and WardsOrganisationThe District Administrator and the District Treasurer arethe legal representation of the beneficiariesresponsible for the implementation of the grantDistrict Administrator = Project ManagerDistrict Treasurer = Project Accountant.The instalments on Treasury (or Trust) Bank Account needing their two signatures for all operations.
13Better governance at local level Procedures and mechanisms of the Grant FacilityStakeholdersThe Beneficiary of a District and LLG GrantTasks - responsibilities during implementation processOrganisation of implementation - as foreseen in the submitted proposal,- in accordance with the EDF procedures (procurement and financial reporting).!!!! The grant funding does not allow for payment of recurrent costs !!!TIP Foresee outsourcing of implementation of activities.Treasurer : keeps accounts on daily basis.District Administrator - cares for continuous monitoring of the implementation.- requests for 40% achievement assessment and corresponding installment- requests for 100% achievement assessment and corresponding installmentFor any issues, the beneficiaries should request for advice and support atthe Provincial Administration level and/orthe help-desk of the DPLGA.
14Better governance at local level Procedures and mechanisms of the Grant FacilityStakeholdersThe Beneficiary of a District and LLG GrantTasks – responsibilities after implementation process (100% assessment)Host – participate in final verification of proper implementationSubmission of a financial and a monitoring report of the grant project.Receive final payment or recover excessive payment on result of final evaluationFund cost necessary to maintain the sustainability of the action if relevant (maintenance and operating costs)
15Better governance at local level Procedures and mechanisms of the Grant FacilityStakeholdersThird PartiesThe spirit of the Organic Law on Provincial Governments and Local-level Governments of 19 July 1995 targets collaboration with Non State Actors.Associatesare: - Non state actors- responsible of the “complementary funding” playing a real role in the action, from the definition of the action, over the implementation and follow-up during and after implementation.Associates can only be reimbursed for per diem or travel costsThe LLGs are considered as part of the district (not as associates).
16Better governance at local level Procedures and mechanisms of the Grant FacilityStakeholdersThird PartiesContractorsAre people and institutions you recruit to provide services, supplies and works part of the activities.Payment of salaries can only be considered in the frame of contracts - contractors.In contracts can be foreseen costs related tolectures in the frame of capacity building,per-diem for travel linked to work supervision,fees of the architect for the design and the supervision of a construction etc.Clear contracts have to be concluded in advance of the intervention of contractor and the process has to respect the EDF procurement rules.In case of doubt, the help-desk of the DPLGA must be consulted in advance.
17Better governance at local level Procedures and mechanisms of the Grant FacilityStakeholdersThe Project Team of the DPLGAthe Project Manager,the Head of Finance and Contracts,the Head of Operations / Help Desk manager,two Monitors/Evaluators andthe long-term technical assistantshort-term technical assistance.
18Better governance at local level Procedures and mechanisms of the Grant FacilityStakeholdersThe Grant Selection CommitteeIncludes representatives from:The Department of National Planning and MonitoringThe Department of TreasuryThe Department of FinanceThe Public Sector Reform management Unit (PSRMU)The Department for Community DevelopmentA representative of the EC Delegation will have the status of observer.Other observers may be invited on request.
19Better governance at local level Procedures and mechanisms of the Grant FacilitySubmissions of proposalsCall for proposalCalls are a rather recent practice in PNGExperience gained in each call for proposal will allow enhancement of the next one.Publicity will be made before a call for proposals will be launched.For each call for proposals, each district will receive a genuine set of documents including:a circular instruction introduction lettercomplete Procedures and mechanisms of the Grant Facilitythe selection process and criteriathe application formsent under to the provincial authorities for distribution to the Districts.
20Better governance at local level Procedures and mechanisms of the Grant FacilitySubmissions of proposalsSetting up a ProposalThe applicant should seek possible cooperationprovincial administrationTechnical departments andthe non-state actors (or other associates)A proposal should beconcise,exact andto the point.TipThe evaluation criteria, attached to the circular instruction, are a good guidance for drafting the application form.
21Better governance at local level Procedures and mechanisms of the Grant FacilityEvaluation of ProposalsAfter checking of administrative compliancethe Eligibility Criteria: which on a yes/no basis will maintain/reject the grants from the ongoing processthe Evaluation Criteria to rank the grantsSelection of ProposalsThe Grant Selection Committeeanalyses the best proposals,has a restricted re-ranking authorityproposes for funding a pre-defined number of proposalsjustifies changes on the original rankingAwarding of Grant ContractBy the Contracting Authority in agreement with the EC-delegationOpening bank account,Signature of contractTransfer of first installmentTraining in financial, procurement and monitoring procedures
22Better governance at local level Procedures and mechanisms of the Grant FacilityImplementation of GrantsProceduresServices, supplies and works of less than PGK20, 000three written quotations from recognized and registered companies.Services, supplies and works over PGK20,000Require tendering. The EU tendering procedures will apply but tenders will be opened at the Provincial Supply and Tenders Board.Payments less than PGK50,000Signature of both District Administrator and District TreasurerPayments above PGK50,000Same but: prerequisite to payment: endorsement signed by the Provincial Administrator and the Provincial Treasurer
23Better governance at local level Procedures and mechanisms of the Grant FacilityFinancial Control and PaymentsAfter the signature of the grant contract,a first instalment of advance of 40% paid on request of the District Administrator and the District Treasury Administrator.After verified implementation 40% achievement physical milestones,a second instalment of advance of 40% will be paidAfter achievement of implementation of 100% of the action, verification of accounts and of physical achievementFinal payment of 20%
24Better governance at local level Procedures and mechanisms of the Grant FacilityMonitoringThe Project Manager and/or his team assure monitoringAt least two compulsory field visits,.before payment of the second advance of 40 %.before the final payment.Additional monitoring of the provincial administration would certainly enhance the process