1. Bosnia and Herzegovina Community Development Project
SCALING UP POVERTY REDUCTION
Community Driven Development
Thursday, March 11, 2004

2. Community Development Project
Total financing
US$ million
IDA Credit
US$ 15 million
Counterpart funding
US$ 2.63 million
Implementation agencies:
Federation Foundation for Sustainable Development
and
Republika Srpska Development and Employment Fund

3. CDP Primary objectives:
Improvement of basic services and facilities in low income and poor communities
Improvement of governance and capacity of local governments to deliver better services to communities.

4. Eligible Municipalities
In RS, 39 municipalities legally classified as:
Undeveloped
Extremely undeveloped
In FBiH, 37 municipalities identified as most economically disadvantaged based on the set of socio-economic criteria.

5. What can be financed?
Project components were designed to ensure achievement of the stated project objective and in accordance with objectives outlined in the Interim Poverty Reduction Strategy for BH.
Component A: investments in non-revenue generating socially oriented projects in low income and poor communities (up to ,00 USD per sub-project);
Component B: improvement of governance and capacity of local governments through developing better partnership between communities and local governments.

6. Implementation procedure
Letter of understanding by eligible municipality
Selection and training of local consultants for Participatory Community Assessment
PCA Report
General Community Meeting
Community Action Group
Application for first priority sub-project
Implementation
Evaluation

7. Implementation procedure Citizens Driven Decision Making Cycle
Needs Assessment
Project Identification
Project Development. Proposal Preparation
Follow-up activities. Evaluation of Project Impacts
PARTICIPATION
Project Completion and Evaluation of Results.
Proposal Review and Approval
Project Implementation. Contract. Procurement. Financing. Monitoring

8. Implementation procedure GENERAL COMMUNITY MEETING (GCM)
Attended by representatives of all relevant citizens groups;
Presentation of PCA report and general discussion on findings and recommendations
Election of Community Action Group (CAG)

9. Implementation procedure Community Action Group (CAG)
Composed by 5-15 members
Summarize PCA report and GCM discussions and lead the process of developing a Community Action Plan (CAP)
Final CAP includes:
Priority project identification;
Possible solutions and activities;
Possible financers;
Number of beneficiaries;
Maintenance, e.t.c.

10. Implementation procedure continued
After project appraisal and approval:
Public tendering and selection of contractor/service provier (municipality);
Tripartite contract: CDP, Municipality and Contractor;
Works/services;
Supervision by municipality and CDP
Evaluation

11. Evaluation
First Evaluation – after project completion and after guarantee period;
Impact evaluation should answer the following:
- were expected results achieved
- could such results been achieved without respective investment?
- do beneficiaries pay user fees?
- maintenance?
- accordingly – are further investments in respective municipality justifiable?

12. Performance based grants
Achievement of expected results is an ultimate pre-condition for further investments;
Joint proposals, submitted by RS and FBiH municipalities can be financed with “bonus grants”;

13. Achievements/Results
Developing cross-ethnic alliances at the community level by creating conditions for joint decision making;
10 % of citizens included in decision making process;
As of today, 151 contracts have been signed for the total amount of EUR 6,042,545, out of which CDP funds were EUR 3,994,887 while local co-financing was EUR 1,074,759 (17.7% of total) plus additional co-financing in kind (labor or material) for EUR 1,044,533 (17.2% of total);
Types of investments include: local roads (33 sub-projects), water supply (31), electrification (7), sewage (11), education/school repair (16), health protection /ambulances (5) etc.;

14. Thanks for your attention