INDUCTION PACK 2

1

• INDUCTION PACK 2
• The Funding Agreement
• Managing the Project Stages

2
THE NDPG PROJECT STAGES
Project Preparation Three Step Process
Implementa-tion Step
Exit Step
Project Verification Step
Status Quo Step
Pre-Appraisal / Business Case Step
Business Plan Step
Immediate Interventions
3
Introduce Municipalities to NDPG
NDP Unit makes call for projects
Municipality prepare project application (may be
assisted by consultants) Submit application to
NDP Unit

• NDP Unit receives application
• Records receipt , Allocates to a PD, First round
  assessment

NDP Unit prepares shortlist of projects for
verification

• NDP Unit undertakes Verification Process
• Site / municipal visits, Complete Verification
  Report

Final short list for submission to Review
Committee / Reference Group
Reference Group recommendations Report to DDG
with funding envelope recommendations
Funding envelope approved by Treasury
Notify Municipality of award
Induction workshop by Treasury in the Municipality
Support Bundles Contents Support Bundles Contents
Support Bundle A1 Toolkit 1 Grant overview Toolkit 2 Grant details Toolkit 3 Guidelines for registration Toolkit 4 Registration form Toolkit 5 Building the Business Case Support Bundle A2 Funding Agreement (FA) Schedules
4
THE FUNDING AGREEMENT

• Extracts to note
• Clause 4.2.20 the municipality is responsible
  for managing performance of the consultants
• Enter into all contracts with the Consultant
  and/or Contractor as required to complete the
  Project, and shall be
• responsible for the management of the performance
  of the Consultant and/or Contractor in accordance
  with the contract
• and for the management of the Project as a whole
  in accordance with all applicable National
  Treasury Regulations and
• related National Treasury Guidelines and
  municipal supply chain management legislation and
  policy.
• Clause 4.2.21 the municipality is responsible
  for ensuring that the required project management
  capacity is in
• place at all times.
• Maintain an appointed Project Manager at all
  times
• Clause 5.1 although a funding envelope is
  potentially available, the NT in the yearly
  gazette stipulates the actual
• yearly allocation
• The National Treasury shall allocate to this
  Project, on the terms and conditions set forth in
  this Agreement, amounts for
• Technical Assistance and/or Capital Grant Funds,
  not exceeding the amounts stipulated in the
  Schedules, and/or as may
• be revised and agreed to in writing by the
  National Treasury.
• Clause 5.9 and 5.10 causes for suspension and
  or withdrawal of funds
• Should the Municipality not provide progress
  reports, financial reconciliation reports, bank
  statements and updated cash
• flow projections on a monthly basis, as required
  by the National Treasury, and should the
  Municipality submit for payment
• an invoice of the Consultant in respect of
  Technical Assistance Funding, or request a
  drawn-down in terms of the Capital

5
THE FUNDING AGREEMENT SCHEDULES
1 General Project Description Yesensure you fill in details of the NDPG project manager AND specifics about the project as per your application the verification report information from your award letter.
2 Overall Project Costs Yes. Must reflect the actual and indicative contributions of municipal, other public and private partners.
3 Milestone Payment Schedule Yes at least for year 1
4 Authorization by the Municipality Yes, signed by the MM (as Accounting Officer)name and signature
5 Council Resolution supporting NDPG Application Yes
6 Special Conditions No
7 NDPG Award Letter from National Treasury Yes
8 Any pertinent delegations approved by the Municipality in terms of this project, e.g. payment requests signed off by NDPG Coordinator, or by NDPG Project Manager, any related delegations and evidence thereof, etc. No BUT.. We prefer that the MM delegates the NDPG programme management responsibilities here. Full name and signature of MM and delegated official.
MAIN AGREEMENT IS STANDARD. SCHEDULES ARE ORGANICCAN BE CHANGED BUT ONLY IF SIGNED BY THE SAME PARTIES WHO SIGNED THE FATHE MM AND THE CD NDPG MAIN AGREEMENT IS STANDARD. SCHEDULES ARE ORGANICCAN BE CHANGED BUT ONLY IF SIGNED BY THE SAME PARTIES WHO SIGNED THE FATHE MM AND THE CD NDPG MAIN AGREEMENT IS STANDARD. SCHEDULES ARE ORGANICCAN BE CHANGED BUT ONLY IF SIGNED BY THE SAME PARTIES WHO SIGNED THE FATHE MM AND THE CD NDPG
6

• YOU HAVE RECEIVED YOUR AWARD LETTER
• YOU HAVE SIGNED THE FA
• YOU KNOW WHAT YOUR GAZETTED ALLOCATIONS ARE
• WHAT THEN ARE THE SUGGESTED PROCESS STEPS FOR
  MANAGING THE PROJECT PREPARATION PROCESS ?

Project Preparation Three Step Process
Exit Step
Implementation Step
7
MANAGING THE PROJECT CYCLE GUIDELINES ON SPLIT
OF ALLOCATIONS OVER PROJECT LIFE CYCLE
8
EXAMPLE OF MANAGING THE PROJECT CYCLE GUIDE TO
ALLOCATION SPLIT
Case Study Municipality x received an NDPG award letter stating that they have been awarded a TA envelope of R12m and R150m for CG. The Municipal project manager now draws up an indicative project plan to start the process of contracting external and internal support for the planning and implementation process. A very indicative idea of how the R12m TA and R150m CG could be utilized Case Study Municipality x received an NDPG award letter stating that they have been awarded a TA envelope of R12m and R150m for CG. The Municipal project manager now draws up an indicative project plan to start the process of contracting external and internal support for the planning and implementation process. A very indicative idea of how the R12m TA and R150m CG could be utilized
Programme Management Coordination overall management of the NDPG award from status quo step to exit and review. (ONLY IF NEEDED!) (i) If consultant max 1 of R162m, to be paid from TA if consultant. (20 of TA R2.4m). (ii) If a municipal official on contract to be paid from CG
Status Quo Review programme and project level assessment Approx 10 of TA R1.2m
Feasibilities and other technical or sectoral studies Approx 25 of TA R3m
Business Plans Approx. 30 of TA R3.6m
Exit Reviews, Assessments Approx 5 of TA R600.000
Township Renewal Strategy Approx 10 of TA R 1.2m
Detailed design work to build asset funded by the capital Approx 18 of the CG envelope of R150m R27m
Capital for construction Approx 80 of R150 CG amount R120m
Outsourced Construction Management Approx 1 of R150m CG R1.5m
Kick-start operating funding (BIDs, ops, etc.), if needed Approx 1 of R150m CG R1.5m
9
Municipality nominates a Project Steering
Committee (PSC) that reports to a Portfolio Head
(MMC)
PSC agrees Terms of Reference (ToR) for the
Overall Status Quo analysis and report
PARALLEL DEVELOPMENT OF A TOWNSHIP REGENERATION
STRATEGY AND IMPLEMENTATION PLAN CAN COMMENCE HERE
Municipality may appoint consultants (using TA
Grant) to prepare Overall Status Quo report
Draft programme Status Quo report with priorities
and phasing of projects and input to Township
Regeneration Strategy
Workshop on Overall Status Quo report with
priorities with PSC and NDP Unit. NDP Unit and
PSC to formally minute the decision
Project Status Quo report(s) prepared for
priority project(s) including draft revised
schedules and Council resolutions
Final Status Quo report(s) approved by PSC
(Overall and Project and contains scoping of
Pre-Appraisal Step)
STRAGIEC REVIEW BY THE NDPG UNIT
NDP Unit receives Final Status Quo report and
reviews it
Final Status Quo Report is approved by the
Municipal Council and resolution approved
Amended schedules (V2)
Treasury signs new / revised schedules
CONTRACTUAL APPROVAL BY THE NDPG UNIT
Project baseline 1 established on Treasury
Portfolio data base
10
Consultants appointed and / or briefed on PA step
by Municipality
Pre- Appraisal Report Draft Report
with implications for project scope and concept

• Phase 1 Consultants undertake project
  appraisals
• Technical (land, planning, geotechnical,
  environmental, infrastructure)
• Economic and Social (economic profile,
  socio-economic data, potential for leveraging
  economic investment

• Phase 2 Impact assessment (based on technical,
  social, economic studies from above)
• Technical impacts and risks
• Economic impacts and risks
• Social impacts and risks

Include summary of the TR Strategy and indicate
alignment of project to the Strategy
Workshop to discuss findings with PSC and
Treasury officials, include TRS

• Revise the project concept
• Prepare final Pre Appraisal report
• Revised project scope
• Impact assessment
• Indicative project budget and work plan
• Summary of TR Strategy and implications of
  project for TRP and vice versa
• Scope the needs of the Business Plan step
• Include revised schedules and milestone payment
  schedule

SRATEGIC REVIEW BY THE NDPG
Submit PA report to NDP Unit
Amended schedules (V3)
Submit final report to Municipal Council for
information
CONTRACTUAL APPROVAL
Treasury and Municipality sign revised schedules
11
Appoint consultants to prepare Business Plan /
extend appointment
Technical viability
Institutional arrangements
Financial viability
Business Plan contents and aspects to be addressed
Implementation Plan
Financial Plan
Partnership / Leverage Plan
Risk Management Plan
Ongoing Management / Exit Strategy Plan
Draft Business Plan with draft revised Schedules
Workshop with PSC and Treasury and TRP
consultants and officials to discuss draft
Business Plan and revised draft schedules and
alignment with TRP
STRATEGIC REVIEW BY NDPG
In line with funding envelope
Not in line with funding envelope then apply for
Exception
Treasury sends Municipality letter with
conditions and amendments to schedules
Municipality revised BP and schedules
Include summary of TRP and ensure projects
aligned with TRP
Municipal Council resolution and Municipal
Council approved Business Plan and schedules
CONTRACUAL REVIEW BY NDPG
Business Plan and schedules to NDP Unit for
approval Treasury approved Business Plan and
endorse schedules
CONTRACTUAL APPROVAL BY NDPG CAPITAL GRANT TOTAL
AMOUNT IS CONFIRMED
Capital Grant award to Municipality
Quarterly disbursements of CG to Municipality
Treasury monitoring of project progress
12
PSC and NDPG PDs resolve procurement of
resources for the implementation of the Business
Plan
Municipality mobilises the professional team (new
/ existing) for implementation
Implementation team commissions detailed design
Procurement of contractors / extend appointment
of professional team to undertake final design
Final design for implementation
CONTRACTUAL REVIEW
Project implementation / construction
Stakeholder engagement
PSC oversight and reporting to Municipal Council
CONTRACTUAL REVIEW
NDPG Disburse payment to Municipality
Achieve milestone payment points Treasury
Implementation review / inspection (quality
assurance) Begin consideration of exit
requirements
NDP Unit confirms close out report submitted
CONTRACTUAL APPROVAL
Complete project Project Handover
NDP Unit considers draft Exit Strategy
Submit project close out report with all support
documentation to Municipality Submit draft Exit
Strategy to NDP Unit and Municipality
CONTRACTUAL REVIEW
13
Municipality ensures necessary management and
maintenance requirements are in place (financial
/ budgetary and human capacity)
NDP Unit undertakes project inspection / review
NDP Unit updates project data on their systems as
status complete