Implementation Modalities

1. Implementation Modalities ‘Reminder Contracting procedures • EDF can be implemented • In direct implementation by the EC or its Delegations • Though delegation of financial and contractual authority • Three kindsof contracting : • works contracts • Service contracts • Supply contracts Competitive bidding process • Two (main) methods of delegation of financial and contractual power : • Programme Estimates • Grants Competition comparing capacity comparing proposals

2. 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

3. 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

4. Case study: PNG Grant facility to strengthen Districts and LLGs Better governance at local level Procedures 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

5. Better governance at local level Procedures and mechanisms of the Grant Facility Objectives of the funding • Assuring sufficient know-how for the execution of the required tasks, and for increasing accountability • Rehabilitate and/or construct physical infrastructures and basis services to make the work and living conditions sufficient attractive • Improving of basic infrastructure, equipment and means for the administrative functioning • Assure communication with lower and higher level governments, administration and the Civil Society for appropriate decision making and budget implementation • 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.

6. The District and Local Level Government Grant Facility Procedures and mechanisms of the Grant Facility Better governance at local level • What are we speaking about • Objectives of the funding • Main specificities • The principles of the District and Local-level Government Grant Funding • The different stakeholders and their roles in the different sequences • Submissions of proposals • Evaluation of Proposals and grant awarding processes • Implementation of Grants and Reporting

7. Case study PNG Enforcement of District and LLG Better governance at local level Call for proposals No 1 Procedures and mechanisms of the Grant Facility MainPrinciples • 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

8. Better governance at local level Procedures and mechanisms of the Grant Facility Main Principles A transparent selection system inclusive: • Administrative compliance Yes or No • Eligibility criteria yes or no • Evaluation Criteria ranking of proposals • Evaluation committee Awarding of grants • Signature of grants contracts

9. Better governance at local level Procedures and mechanisms of the Grant Facility Main Principles Funding\implementation in stages • first instalment advance of 40% • achievement of 40% milestones • second instalment of 40% • Achievement of EU investment • Payment of outstanding 20%

10. 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

11. Better governance at local level Procedures 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

12. Better governance at local level Procedures and mechanisms of the Grant Facility Stakeholders 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 • Organisation • The 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.

13. Better governance at local level Procedures and mechanisms of the Grant Facility Stakeholders 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 at • the Provincial Administration level and/or • the help-desk of the DPLGA.

14. Better governance at local level Procedures and mechanisms of the Grant Facility Stakeholders 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)

15. Better governance at local level Procedures and mechanisms of the Grant Facility Stakeholders Third Parties The spirit of the Organic Law on Provincial Governments and Local-level Governments of 19 July 1995 targets collaboration with Non State Actors. Associates are: - 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 LLGs are considered as part of the district (not as associates).

16. Better governance at local level Procedures and mechanisms of the Grant Facility Stakeholders Third Parties • Contractors • Are 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.

17. Better governance at local level Procedures and mechanisms of the Grant Facility Stakeholders The Project Team of the DPLGA • 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.

18. Better governance at local level Procedures and mechanisms of the Grant Facility Stakeholders • The Grant Selection Committee Includes representatives from: • 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 A representative of the EC Delegation will have the status of observer. Other observers may be invited on request.

19. Better governance at local level Procedures 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.

20. Better governance at local level Procedures 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) A proposal should be • concise, • exact and • to the point. • Tip • The evaluation criteria, attached to the circular instruction, are a good guidance for drafting the application form.

21. Better governance at local level Procedures 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

22. Better governance at local level Procedures and mechanisms of the Grant Facility Implementation of Grants Procedures • 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

23. Better governance at local level Procedures 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%

24. Better governance at local level Procedures and mechanisms of the Grant Facility Monitoring • The Project Manager and/or his team assure monitoring • At 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