implementation modalities contracting procedures three kindsof contracting : works contracts ...
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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