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GLOBAL LESSONS: DESIGNING CDD OPERATIONS. Samantha de Silva HDNSP April 2005. OVERVIEW Direct Financing of Community Sub-Projects. FUNDING AGENCY (Central Government Agency, Social Fund, NGO, Local Government, etc). Other Characteristics:

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global lessons designing cdd operations

GLOBAL LESSONS: DESIGNING CDD OPERATIONS

Samantha de Silva

HDNSP

April 2005

overview direct financing of community sub projects
OVERVIEW Direct Financing of Community Sub-Projects

FUNDING AGENCY

(Central Government Agency, Social Fund, NGO, Local Government, etc)

Other Characteristics:

Community Contribution (Labor, Materials, Cash)

Community Participation (throughout project cycle)

Financing Agreement (Contract)

Disbursement

Procurement

Materials

Contractors

Skilled Labor

Technical Assistance

COMMUNITY GROUP

(Project Management Committee)

Materials Services

slide3

Subproject Cycle

  • Preparation
  • Funding Agency:
  • Informs stakeholders
  • Facilitates communities
  • Assesses capacity of communities
  • Develops simple technical designs
  • Appraises subproject (Desk/Field)
  • Community:
  • Elects Project Management Committee
  • Prepares/submits subproject application and budget
  • Approval and Launch

Funding Agency:

  • Trains community
  • Prepares financing agreement
  • Hands over first check at launch
  • Community:
  • Mobilizes community contribution
  • Plans launch ceremony
  • Signs Financial Agreement
  • Completion
  • Funding Agency:
  • Conducts completion assessment
  • Provides completion certificate
  • Community:
  • Takes over operation and maintenance of asset

Implementation

Funding Agency:

  • Provides technical support
  • Oversees implementation/financial management

Community:

  • Procures materials and services
  • Supervises construction
  • Manages labor contribution
  • Prepares progress reports
  • Manages funds
  • Monitoring and Evaluation
  • Funding Agency:
  • Releases funds
  • Conducts participatory technical/financial audits
  • Beneficiary assessments
  • Community:
  • Develops own indicators/M&E plan
  • Provides day-to-day oversight
  • Conducts audits
key design elements
Key Design Elements
  • Base arrangements on past community experience
  • Info campaign to inform all stakeholders of “rules of the game”
  • Develop targeting strategy consistent with PDO
  • Develop simple, standard designs with input from communities/sectoral agencies
  • Design simple training packages for communities
key documents

OM

PAD

DCA

Key Documents
  • Development Credit Agreement (DCA)
  • Project Appraisal Document (PAD)
  • Operational Manual (OM)
  • Community Manual
  • Financing Agreement (FA and Community)

Ensure consistency across documents.

community contributions
Community Contributions
  • Community must establish who should contribute, when, how and where the contribution will be given.
  • FA must help community value contributions accurately.
  • Community must track contributions.
disbursement arrangements
Disbursement Arrangements

How should Funding Agency disburse to communities?

  • Output or Lump-sum method for financing based on physical progress
  • Ensure that adequate funds flow smoothly to communities
  • Disburse to communities in tranches
  • Cost savings accrue to community
  • Facilitate community’s access to formal banking system
procurement arrangements
Procurement Arrangements
  • Develop/update Unit Cost Database
  • Encourage communities to use Local Shopping (3 Quotations) but use Direct Purchase as long as items are within rates in Unit Cost Database
  • Use Local Competitive Bidding or Direct Contracting for hiring of contractors.
  • Establish wage rates for hiring skilled labor
  • Provide active support to communities on prices and quality
  • Build incentives for efficiency of procure-ment
monitoring and evaluation
Monitoring and Evaluation
  • Conduct systematic post review
  • Set up MIS early in the project (track process, input, output and outcome indicators)
  • Conduct financial audits together with technical and social audits.
  • Keep in mind the PAD as well as the ICR!
operation and maintenance
Operation and Maintenance
  • Address issues to do with maintenance and recurrent costs early on, verify during appraisal
  • Include plan to cover maintenance and recurrent costs
  • Provide training on technical aspects as well as fundraising techniques
  • Conduct post completion visits/training
completion
Completion
  • Emphasize completion of subprojects on a timely basis
  • Account for all subproject related funds
  • Submit final completion report
  • Issue Completion Certificate