Implementation Modalities Contracting procedures Three kindsof contracting : works contracts Service contracts Supply contracts Two (main) methods.

Implementation Modalities

Contracting procedures

Three kindsof contracting :

works contracts

Service contracts

Supply contracts

Two (main) methods of delegation of financial and contractual power :

Programme Estimates

Grants

EDF can be implemented

In direct implementation by the EC or its Delegations

Though delegation of financial and contractual authority

Competitive bidding process

Competition comparing capacity comparing proposals

‘Reminder

Implementation Modalities

Contracting procedures

Grants

Delegation of Power (at 2nd level)

From programme estimate manager to beneficiary of grant contract

Empowers for financial and contractual issues

Follow up of procedures and financial reporting remains obligation

Administrator is fully responsible

In grants there are also 3 kinds of contracting :

works contracts

Service contracts

Supply contracts

Implementation Modalities

Contracting procedures

Contracting grants

Through calls for proposals – restricted

– open

Analyse – comparison on the basis of

Capacity analyse (financial and operational)

Relevance of the proposal

Implementation methodology

Sustainability of the investment made

Cost effectiveness of the proposed budget and of co-funding

Better governance at local levelProcedures and mechanisms of the Grant Facility

Subject

WHAT: A grant facility to support proposals of districts and LLG’s

WHEREFORE: Reinforcing their functioning and to improving governance.

HOW: Six monthly open calls for proposals

GRANTING: predefined limited number

SELECTION: Proposals ranked on objective criteria

AWARDING 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

Case study: PNG Grant facility to strengthen Districts and LLGs

Better governance at local levelProcedures and mechanisms of the Grant Facility

Objectives of the funding

1. Assuring sufficient know-how for the execution of the required tasks, and for increasing accountability

2. Rehabilitate and/or construct physical infrastructures and basis services to make the work and living conditions sufficient attractive

3. Improving of basic infrastructure, equipment and means for the administrative functioning

4. Assure communication with lower and higher level governments, administration and the Civil Society for appropriate decision making and budget implementation

5. Assure 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.

Better governance at local level

The District and Local Level Government Grant Facility

Procedures and mechanisms of the Grant Facility

1. What are we speaking about2. Objectives of the funding 3. Main specificities 4. The principles of the District and Local-level Government Grant Funding 5. The different stakeholders and their roles in the different sequences 6. Submissions of proposals 7. Evaluation of Proposals and grant awarding processes 8. Implementation of Grants and Reporting

Better governance at local level

Main Principles

Procedures and mechanisms of the Grant Facility

• A minimum counterpart funding of 15%

• Successive six-monthly calls for proposals will include a fine-tuned description of

the grant system, number of grants, deadline etc

the detailed submission procedures

the competitive selection process, inclusive the evaluation criteria

Call for proposals No 1

Case study PNG Enforcement of District and LLG

• Administrative compliance Yes or No

• Eligibility criteria yes or no

• Evaluation Criteria ranking of proposals

• Evaluation committee Awarding of grants

• Signature of grants contracts

Better governance at local level

Main Principles

Procedures and mechanisms of the Grant Facility

A transparent selection system inclusive:

Better governance at local level

first instalment advance of 40%

achievement of 40% milestones

second instalment of 40%

Achievement of EU investment

Payment of outstanding 20%

Funding\implementation in stages

Main Principles

Procedures and mechanisms of the Grant Facility

Better governance at local level

The District and Local Level Government Grant Facility

Procedures and mechanisms of the Grant Facility

Stakeholders

The applicant

The Beneficiary of a District and LLG Grant

Third Parties

The Project Team of the DPLGA

The Grant Selection Committee

Better governance at local levelProcedures and mechanisms of the Grant Facility

Stakeholders

The applicant

Definition• Any of the 83 rural districts, including their LLG’s, • Represented by the District Administrator, • Not beneficiary from another EU funded grant

Activities in the proposal preparation process: Seek for possible collaboration with non state actors (members of the Civil Society) and involvement of other projects Preparation of the application (proposal), preferably in agreement with the Provincial Administration and, if applicable with line departments Submission of the grant proposal to the DPLGA

Better governance at local levelProcedures and mechanisms of the Grant Facility

The Beneficiary of a District and LLG Grant

Definition District awarded by a grant for having presented one of best proposals inclusive its Local-level Governments, its administration, its LLG’s and Wards

OrganisationThe District Administrator and the District Treasurer are

the legal representation of the beneficiaries responsible for the implementation of the grant

District Administrator = Project Manager District Treasurer = Project Accountant.

The instalments on Treasury (or Trust) Bank Account needing their two signatures for all operations.

Stakeholders

Better governance at local levelProcedures and mechanisms of the Grant Facility

The Beneficiary of a District and LLG Grant

Tasks - responsibilities during implementation process

Organisation 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 installment

For any issues, the beneficiaries should request for advice and support atthe Provincial Administration level and/or the help-desk of the DPLGA.

Stakeholders

Better governance at local levelProcedures and mechanisms of the Grant Facility

The Beneficiary of a District and LLG Grant

Tasks – responsibilities after implementation process (100% assessment)

• Host – participate in final verification of proper implementation

• Submission of a financial and a monitoring report of the grant project.

• Receive final payment or recover excessive payment on result of final evaluation

• Fund cost necessary to maintain the sustainability of the action if relevant (maintenance and operating costs)

Stakeholders

Better governance at local levelProcedures and mechanisms of the Grant Facility

Third Parties

Stakeholders

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 costs

The spirit of the Organic Law on Provincial Governments and Local-level Governments of 19 July 1995 targets collaboration with Non State Actors.

The LLGs are considered as part of the district (not as associates).

Better governance at local levelProcedures and mechanisms of the Grant Facility

Stakeholders

Third 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 to

• lectures 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.

Better governance at local levelProcedures and mechanisms of the Grant Facility

Stakeholders

the Project Manager,

the Head of Finance and Contracts,

the Head of Operations / Help Desk manager,

two Monitors/Evaluators and

the long-term technical assistant

short-term technical assistance.

The Project Team of the DPLGA

Better governance at local levelProcedures and mechanisms of the Grant Facility

Stakeholders

The Grant Selection Committee

Includes representatives from:

A representative of the EC Delegation will have the status of observer.Other observers may be invited on request.

• The Department of National Planning and Monitoring

• The Department of Treasury

• The Department of Finance

• The Public Sector Reform management Unit (PSRMU)

• The Department for Community Development

Better governance at local levelProcedures and mechanisms of the Grant Facility

Submissions of proposals Call for proposal

Calls are a rather recent practice in PNG

Experience 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 letter

•complete Procedures and mechanisms of the Grant Facility

•the selection process and criteria

•the application form

sent under to the provincial authorities for distribution to the Districts.

Better governance at local levelProcedures and mechanisms of the Grant Facility

Submissions of proposals

Setting up a Proposal

The applicant should seek possible cooperation

− provincial administration − Technical departments and − the non-state actors (or other associates)

concise, exact and to the point.

A proposal should be

TipThe evaluation criteria, attached to the circular instruction, are a good guidance for drafting the application form.

Better governance at local levelProcedures and mechanisms of the Grant Facility

Evaluation of Proposals

After checking of administrative compliance

• the Eligibility Criteria: which on a yes/no basis will maintain/reject the grants from the ongoing process

• the Evaluation Criteria to rank the grants

Selection of Proposals

The Grant Selection Committee − analyses the best proposals, − has a restricted re-ranking authority− proposes for funding a pre-defined number of proposals− justifies changes on the original ranking

Awarding of Grant Contract

By the Contracting Authority in agreement with the EC-delegation− Opening bank account, − Signature of contract− Transfer of first installment− Training in financial, procurement and monitoring procedures

Better governance at local levelProcedures and mechanisms of the Grant Facility

Implementation of Grants

Services, supplies and works of less than PGK20, 000

three written quotations from recognized and registered companies.

Services, supplies and works over PGK20,000

Require tendering. The EU tendering procedures will apply but tenders will be opened at the Provincial Supply and Tenders Board.

Payments less than PGK50,000

Signature of both District Administrator and District Treasurer

Payments above PGK50,000

Same but: prerequisite to payment: endorsement signed by the Provincial Administrator and the Provincial Treasurer

Procedures

Better governance at local levelProcedures and mechanisms of the Grant Facility

Financial Control and Payments

After 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 paid

After achievement of implementation of 100% of the action, verification of accounts and of physical achievement

Final payment of 20%

Better governance at local levelProcedures and mechanisms of the Grant Facility

Monitoring

The Project Manager and/or his team assure monitoring

At least two compulsory field visits,.

1. before payment of the second advance of 40 %. 2. before the final payment.

Additional monitoring of the provincial administration would certainly enhance the process