Manual on Community Based Approach to Local Development Project – Phase 2 (стр. 13 )

Issues might arise regarding concept/definition of terms used in the appraisal document. Time clarification should be sought by CDOs from their immediate supervisor. One such confusion is often found regarding target HHs and beneficiary households. Clarification about it has been given Annex – 34(A)

5.2.3: Proposal Approval

The appraisal report and the proposal along with all the relevant documents will be submitted to the ‘project selection committee’ at CBA. The committee will review the documents and recommend it for approval, if found satisfactory. Following to the recommendation from CBA, the proposal will be approved by senior programme manager or other UNDP authorities as necessary (Annex – 34). The CO will be intimated about the approval through RIU office. Also, RIU could see the status of the approval on internet-based data base.

5.2.4: Signing Grant Agreement

Following to the approval of micro-project proposal, CBA/PMU will prepare micro-capital grant agreement (MGA) to be signed between UNDP and the CO. MGA will be signed by the UNDP management and sent to RIU. RIU will hold dialogue with the CO-members and get the Agreement signed in a general meeting of the CO, in presence of local authorities as possible. A sample MGA is given in Annex - 35).

Box - XIX: Third Dialogue in a Community Signing of MGA is considered as third opportunity for the RIU-team to formally emphasize once again on the value of community (collective) action for resolving local problems. This dialogue is conducted in presence of general meeting of the CO. The RIU-team reminds once more about importance of ‘organisation, capital and skill’ as the basic elements for improving living condition of the people and for overall empowerment of the community. It congratulates the members for their achievements made so far and informs them that the CBA Project has decided to extend its support because of their success in becoming a matured community and trustworthy partner under the framework of the guidelines provided by the Project. RIU-team further reminds them about the participatory planning, which resulted into proposal that was accepted by the Project. Then it reads out key activities in the proposal; cost sharing arrangement; expected result, benefit distribution mechanism and sustainability. Purpose is to ensure that common members are fully aware of the proposed project and its related matters. Upon ensuring satisfaction on the part of the members, the RIU-team reads key terms and conditions mentioned in the MGA and explain, as necessary, to ensure the members fully understand the terms. Then, it explains about the mechanism in which the money will be released in tranches and what kinds of evidences and documents will have to be submitted by the CO to receive subsequent tranches. At last, the RIU-team asks the general members to bear the responsibility for proper and timely utilisation of resources and be accountable in case of any misappropriation. In case they agree, then RIU-team invites the authorised official (often the chairperson) to sign the MGA. Often, this is the climax of the session. Members are happy to see their dream going to come true.

5.3  Micro-project Implementation

Implementation of micro-projects requires CO to mobilise resources from all sources[14], make an implementation plan, procure goods and services to complete the implementation work, maintain a sound book keeping and facilitate monitoring of the work. All these sub-activities are supposed to be as participatory as possible. Details are given hereunder:

5.3.1: Resource disbursement from CBA

Upon signing of the MGA, delivery of resources starts from the CBA side. Resource is transferred directly in the account of the CO in three tranches as mentioned in the MGA. Every tranche is associated with a set of specific tasks (milestone) to be accomplished by the CO. The CO must spend the received tranches according to the financial policy/procedures of UNDP. The first tranche begins (as an advance) after signing of the MGA. The second and subsequent tranches come upon satisfactory utilization of the previous tranche is pletion of the work from the previous instalment is verified in a general meeting and by a quality supervision committee (QSC), in terms of quality and quantity of the work done along with financial progress made. To receive second and subsequent instalments, the CO must submit required documents[15] to the Project (through RIU) as mentioned in Annex – 36.

Box – XX: Quality Supervision Committee (QSC) To supervise the implementation of the community project so as to ensure quality result and efficient utilisation of resources, a ‘quality supervision committee’ is envisaged. This committee will consist of the technical officer from the relevant department (of RSA or city council), focal person from the RSA, community development officer of CBA. QSC will look into technical aspect, financial aspect and institutional/governance aspect of the work. Their findings will be recorded in a combined report or a protocol, which will serve as instruction (if any) to the CO and the contractor as well as recommendation to the CBA for release of tranches.

There are two modalities for the support to micro-project from the resources of VC/CC, RSA/OSA and private sponsors:

·  Parallel funding: The support is extended independently by the partners. UNDP releases CBA’s share to CO under its financial framework while VC/CC/RSA/OSA and private sponsors release their share to CO under the framework of their own financial procedures. At times, the local/regional authorities commit their share to finance defined activities within the framework of CO project but provide support in terms of goods and services only and not in terms of cash (as an example, local authorities could repair roof of health post, whereas CO could undertake renovation work of heating system of that post, etc.).

·  Cost sharing: Local council/government bodies/private sponsors sign a cost-sharing agreement with UNDP for the CO project implementation and transfer their share of resources to the UNDP account. UNDP then adds CBA’s share and transfers the total amount to the CO in three tranches. In this arrangement, UNDP financial rules apply irrespective of the sources from which the resources were received by UNDP.

The decision on the modality will be made in each individual case. In CBA-I, parallel funding was practiced. The same will hold good in CBA-II. However, cost-sharing will be welcomed if a partners desire so.

The instalments are transferred to the CO through bank. However, the resource delivery message is disseminated to the CO-members by the RIU-team transparently during CO-meeting, which is organised especially for purpose ensuring transparency and accountability.

5.3.2: Work division

The FG reviews the project proposal and prepares necessary work plan and budget for utilisation of resources (cash, kind, labour) available locally; discusses in the CO-meeting and distributes work among the members in line with the work plan. RIU-team assists the FG in preparing sound workplan to ensure timely completion of the work.

5.3.2: Book keeping

The FG maintains a transparent book of all transactions (cash or kind) taking place in context of the micro-project. It also presents the progress report to the CO-MT and in the general meeting of CO from time to time. RIU-team provides training, as necessary, to the account keeper of the FG and checks the account book from time to time. A sample of book to be maintained by the FG is given in Annex – 37.

5.3.4: Procurement and implementation

If the project is simple enough (and do not require specialised technical inputs), its implementation will be done entirely by the CO. If necessary, CO will hire a few local specialists and procure basic materials/services. However, such hiring and procurement should take place in accordance with UNDP regulations[16] (see Annex - 38). The RIU-team will assist the CO and empower the local community to handle resource and related procedures. They should be taught bidding practices as well. So, for smaller amount and simpler projects they should be allowed to proceed by themselves.

In case of partially complicated micro-project, the CO will choose the activities of the proposal that it can do on its own. Procurement of goods/equipment and services for the completion of the task is done by the FG as per the prescribed financial procedures of UNDP. For remaining (complicated) tasks, the CO should contract out to a contractor through appropriate tender procedure as prescribed in the technical/financial manuals of CBA.

For larger and technically complex works, such as constructing/repairing water supply systems, renewable energy sources etc., CO will fully engage competent contractor selected through tender process.

To facilitate the process of contractor selection, RIU will develop a roster of contractors recognised in the oblast and rayon headquarters for their competence and quality service. To this end, RIU can take help of technical departments of oblast and rayon authorities. COs can easily use the roster in case of need.

5.3.5: Monitoring

Monitoring of the micro-project implementation will be done internally as well as externally as follows:

Internal monitoring will be done by the CO in a participatory way. The CO will assign, preferably, four members to do monitoring of the micro-project implementation from financial, physical, organisational and impact aspects. These members will monitor the progress and produce their reports to the CO-members from time to time during regular/special meetings of the CO. The same four persons will play a vital role during carrying out public audit of the micro-project (see Annex - 39). External monitoring will be done by QSC as mentioned in section above. RIU and the COs will maintain log book (Annex - 40) for effective monitoring and follow up. Ad hoc monitoring will be done by CBA/PMU and officials from VC/CC/RSA/OSA.

CHAPTER SIX