UNDP NEX Project Modalities in Pakistan Presentation to DTCE staff for Induction Training Programme

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UNDP NEX Project Modalities in
PakistanPresentation to DTCE staff for
Induction Training Programme
December 22, 2004
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National Execution (NEX) Modality

• NEX modality is the implementation of UNDP
  assisted development projects in collaboration
  with Economic Affair Division, Government of
  Pakistan and National / Provincial executing
  agency (NEX) in a decentralized, flexible,
  accountable and transparent manner.
• Project Cycle Operational Manual (PCOM) provides
  the detailed corporate guidelines and
  operational framework for implementation of NEX
  projects.

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Project Cycle Operations Manual (PCOM)

• Catalogue of UNDP corporate procedures and
  guidelines, which aims at improving the planning
  and management of UNDP funded development
  cooperation in Pakistan
• Upgrade and integrate relevant policies and
  procedures from time to time
• Intended users are government agencies, UNDP and
  UN specialized agencies and projects staff and
  consultants

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Project Cycle Operations Manual (PCOM)

• Different Versions of PCOM
• Version 1.0 June 1997
• Version 2.0 July 1999
• Version 3.0 July 2001
• Volumes of PCOM 3.0
• Volume I - Policies, processes and procedures
  for Project
• formulation and appraisal
• Volume II - Policies, processes and Procedure
  for Project implementation

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Project Implementation Framework

• Economic Affairs Division (EAD)
• Approve UNDP development assistance
• Supervise, monitor evaluate UNDP development
  cooperation through TPR meetings
• National Executing Agency ( NEX)
• Implement project activities
• Achieve project outputs, results and objectives
• Legally accountable for use of development
  assistance
• UNDP Country Office Pakistan
• Provide funding and assistance to to government
  in programming, resource mobilization,
  implementation and evaluation of development
  cooperation
• Accountable to its Executive Board for
  utilization of UNDP resources provided to Pakistan

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UNDP Role in Project Implementation

• Work Planning and Reporting
• Annual and quarter work plans
• Annual and quarter progress reports
• Quarterly advances
• Mobilization of Project Inputs
• International Inputs (experts, consultants,
  oversees training equipment)
• Local Inputs (Recruitment, subcontracting,
  training equipment)
• Financial Management Rules and Procedures
• Implementation of financial rules and procedures
  that ensure the discharge of accountabilities and
  be subjected to proper accounting, reporting and
  auditing standards
• Other NEX Support
• Assigning Program Officer in UNDP Country Office
• Monitoring Project activities, providing advice
  and coordinating support

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Management Model for NEX Projects in Pakistan
Function
Responsibility
Minister/ Secretary/ Chairman
Top level decision maker sets policy
Focal point for ownership, responsibility,
accountability and supervision
National Project Director (NPD)
Operational management and coordination
National Project Manager (NPM)
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NEX Project Management and Administration
Policies

• Financial Management
• In Country Travel
• Procurement of Equipment and Services
• Sub-contracting/ Outsourcing
• CCB Grant Funding
• Monitoring, Reporting and Evaluation
• Resource Mobilization

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Financial Management

• A brief outline of financial management
  procedures is summarized below
• Preparation of Annual Work Plan (AWP).
• Approval of AWP by the UNDP Country Office.
• Signing of cost-sharing agreement with the
  participatory Donors.
• Release of funds from Donors to UNDP Country
  Office.
• Preparation of quarterly work plan based on
  approved AWP.
• Release of advance for expenditure by UNDP to
  DTCE.
• Documentation of transaction through an
  integrated accounting system.
• On line monitoring of integrated accounting
  system by the UNDP Country office.
• Submission of quarterly financial, progress
  reports and other documents to UNDP for record.
• Settlement of advance provided by the UNDP
  Country Office.
• Monitoring visit of the UNDP Country Office to
  DTCE.
• Annual Tripartite Review Meeting by Economic
  Affairs Division, UNDP Country Office and DTCE.
• NEX annual audit exercise.

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In-country Travel

• Travel Authorization CEO, NPD NPM
•  
• Daily Subsistence Allowance (DSA)
• Project related travel of Chairman and the BOD
  DTCE would be paid as per PCOM.  
• Other Incoming / Outgoing personnel or experts
  from other organizations and participants to DTCE
  meetings, seminars and workshops traveling on
  project related assignments, explicitly
  authorized in writing by CEO, DTCE would be paid
  Rs.1,650 per night for accommodation, DSA of
  Rs.550/- per night for incidental charges plus
  reimbursement of travel at actual on the basis of
  completed F-10 claims.
•  
• DSA rates of DTCE staff (PDR, CLGR, IME FOTs)
  traveling on project related assignments, will be
  authorized in writing by CEO. DSA will be paid at
  prescribed rates according to their salary
  package, i.e. those getting Rs. 100,000/- and
  above would be paid 100 of prescribed elsewhere
  DSA rate determined / revised by UNDP for their
  official visits and those getting less than Rs.
  100,000/- would be paid 50 of prescribed
  elsewhere DSA rate determined / revised by UNDP
  for their official visits. However, the Manager
  Field Operation Teams (FOTs) and their related
  staff would be paid 50 of prescribed elsewhere
  DSA rate determined / revised by UNDP for their
  official visits irrespective of their salaries.
  Reimbursement of travel cost at actual will be
  made however in case of use of personal car an
  amount of Rs. 3/- per km will be paid.
•  
• Maximum up to eighty percent of the full DSA may
  be paid to in-country travelers in advance. The
  remaining 20 percent shall be paid upon
  submission of the claim for reimbursement of
  Travel Expenses and the back to office report.

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In-country Travel

• DOCUMENTS REQUIRED BEFORE TRAVEL
• Travel clearance by CEO on Inter Office
  Memo/Travel Authorization Form.
• Travel Authorization by NPD and NPM on duly
  completed Travel Authorization Form.
• DOCUMENTS REQUIRED AFTER TRAVEL
• Duly completed F-10 Form and Field Visit Report.
• TRANSPORT
• An official vehicle shall be authorized by
  NPM/NPD for all official duties. The NPM must
  ensure that a daily vehicle log giving details of
  usage and fuel consumption is maintained.
• OTHERS
• When meals or any type of overnight accommodation
  are provided free of charge to the traveler by
  DTCE/UNDP, any UN agency, Government, or any
  institution, the DSA rate payable shall be as
  follows
•   1. when accommodation only is provided, the DSA
  rate payable shall be 50
• 2. when meals only are provided, the DSA rate
  payable shall be 70 and
•   3. when accommodation and meals are provided,
  the DSA rate payable shall be 20.
•  

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Procurement of Equipment and Services

• Equipment Provision in Project Document
• Preparation of specification
• a. Expendable Equipment ltUS 400 or serviceable
  life of less than 5 years
• b. Non-Expendable Equipment gt US 400 or
  serviceable life of less than 5 years
• Request for Proposal through Advertisement (over
  US 15,000)
• Project Procurement Committee (below US 15,000)
• Expanded Project Procurement Committee (over US
  15,000)
• UNDP Contracts and Assets Procurement Committee
  (over US 29,999)

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Procurement of Equipment and Services

• 7. Issuance of Purchase Order
• Exemption from Taxes / Levies
• Receipt of Equipment at Project Site
• Payment to vendor(s)
• Non-expendable Property Ledger
• Transfer of Title of Equipment Ownership

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Project Procurement Committee(US 501-US 15,000)

• National Project Manager Chairperson
• Representative of NEX Member
• Subject Specialist Member
• Long term Project Staff Member
• Project Admn./ Finance Assistant Secretary

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Expended Project Procurement Committee (US
15,001-US 29,999)

• National Project Director Chairperson
• UNDP Assistant Resident Representative Member
• Subject Specialist Member
• National Project Manager Member
• Project Admn./ Finance Assistant Secretary

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Arranging Subcontracts

• Provision of Sub-contracts in Project Document
• Issuance of subcontracts in consultation with
  UNDP CO up to (US 3,000)
• Request for Proposal through Advertisement (over
  US 3,001)
• 4. Expanded Project Procurement Committee
  (Between US 3,000 to US29,999)
• 5. UNDP CAP Committee (over US29,999)
• Signing of Subcontracts
• Exemption from Taxes/ Levies
• Payment to vendor(s)/ firm(s)

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DTCE Grant Funding

• DTCE will provide grant money for the projects
  that will benefit the communities, in terms of
  meeting the development needs and addressing
  their immediate problems. Grant Financing will be
  activated for Union approved CCB development
  projects in eligible Unions, at the sole
  discretion and satisfaction of DTCE subsequent to
  its evaluation of the execution of the Union
  Action Plan based on the DTCE CCB IME system.
  Upon approval of Grant Financing a tripartite
  agreement will be signed amongst the Union, DTCE
  and CCB in accordance with terms prescribed in
  CCB Rules Notified by the Provinces. This
  tripartite agreement will be based on the
  following conditions
•  Role of Local Government
• Concerned Local Government has made the sectoral
  classification and Prioritization for the CCB
  projects. 
• Formation of monitoring committees for CCB
  projects. 
• Resolution of the concerned LG for approval of
  the project 
• District Government has registered the CCB. 
• Resolution of the concerned LG for approval of
  the project. 
• Tripartite agreement on CCB Form 5 
• The concerned Local Government contributes a
  share from the 25 development funds reserved for
  CCB projects. 
• Respective Union/Tehsil/District council will
  expedite and facilitate the projects undertaken
  by CCBs with DTCE grant money and monitor their
  progress till completion. The concerned council
  will ensure the utilization of grant money
  provided by DTCE to maximize the impact of
  benefits to communities.

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DTCE Grant Funding

• Role of CCB 
• CCB Registration. 
• Identification of project by the CCB along with
  resolution duly approved by the CCB. 
• Project Proposal on CCB Form 4. 
• Project Cost estimates should be signed by the
  concerned authority. 
• Community participation equivalent to 20 of the
  project cost is provided for. 
• The project falls in priority areas of the Local
  Government.  
• The following operating procedures will be
  adopted for the review, approval and payment of
  grant money to CCBs 
• Manager FOT will review the CCB project/ proposal
  and forward to Director Community and Local
  Government Relations(CLGR) with his
  recommendations. 
• Director CLGR will approve/disapprove the
  project in consultation with CEO and PMU. 
• CEO/Dir. CLGR will forward the proposal to PMU
  for release of payments to the concerned parties
  as given in MOU/contract. 
• As soon as the funds are received in the bank
  account of CCB (one basic account on each
  project), the Secretary CCB will prepare an
  official receipt of funds received along with a
  copy of banks deposit slip and communicate the
  transaction to DTCE.

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Monitoring, Reporting and Evaluation

• Annual and Quarterly Work Plans
• Yearly Review Meetings of UNDP Country Office
• Annual/ quarterly reviews by the BoD
• Project Progress Reporting
• Monitoring Visits of UNDP Country Office
• Tripartite Review Meetings
• Annual Financial/ Performance Audit
• Mid-term Project Evaluation/ Visits of CO
  Evaluation Mission(s)
• Terminal Project Reports

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Merits of NEX Modalities

• Availability of detailed implementation
  framework with well defined corporate guidelines
• Standardization of business processes
• Enhanced coordination and reporting mechanism
• Higher transparency and accountability
• Improved time management
• Flexibility in planning and budgeting
• Greater financial autonomy
• Better organizational citizenship
• Improved benefits and perks to project staff
• Efficiency in achieving project outputs and
  objectives
• Empowerment to project management

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Demerits of NEX Modalities

• Difficulty in synchronization of NEX modalities
  and executing agencys working approaches
• 2. Lengthy processes to some extent
• 3. Empowerment versus mis-management of resources

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Thanks