Presentation 6.1 PSIP Preparation Handbook and Appraisal Criteria Yuki Kobayashi-Sangala JICA-CEPSIP2 August

1. PSIP Tools: IT 1.PSIP Project Proposal Templates for new and ongoing projects (Excel based) ： for MDAs to submit to EP&D for appraisal; to be uploaded to PSIP Database 2.PSIP Project Quarterly Progress Report Form (Word based): for MDAs to submit to EP&D for project management at national level; to be shared by PSIP and M&E 3.PSIP Database and related Manuals: all the proposal templates are uploaded and budget allocation figure is updated 2

2. PSIP Tools: Documents PSIP Preparation Handbook: for all the PSIP stakeholders, explaining roles and processes of PSIP, PSIP tools, and roles of stakeholders PSIP Template User Manual: explains how to use Templates and what to fill in PSIP Appraisal Manual: currently for internal use of EP&D 3

3. Contents of PSIP Preparation Handbook October 2014 Version 4

Chapter 1. Introduction 1-1. Malawi’s Key Development Planning Instruments National Development Planning Frameworks can be classified as long-term (Vision 2020), medium-term (MGDSII), and short-term (National Annual Budget). PSIP translates what is in the Development Planning Frameworks into action (development execution tool), through interfacing with budgeting, implementation, and evaluation phases of the development planning cycle (Figure 1 on page 3). 5

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Chapter 1. Introduction 1-2. Purpose and Target Users The Handbook will facilitate a uniform approach in planning, scheduling and presentation of projects throughout the various agencies of the government and thereby improving the quality of PSIP and its management. Target users of the Handbook are: – Planning officers in MDAs and other implementing agencies responsible for the formulation and implementation of development projects; – Project Managers responsible for managing projects – Government institutions responsible for preparing PSIP and Development Budget. 7

Chapter 2. The PSIP: Its Objective and Scope 2-1. Definition of PSIP 1. PSIP can be defined from the perspective of a system or a product. 2. As systems, the PSIP is a multi-functional and multi-stakeholder management device that translates development strategies and plans into implementation through approval of development projects for execution in the national budget. It also monitors and supervises performance of on-going projects to track and guide their implementation. In this system, stakeholders have different roles and interests. The PSIP is useful in reconciling these often diverging interests in order to meet the overall national development objectives. 3. As a product, the PSIP is a rolling plan that provides details of Government’s new, ongoing, and pipeline development projects, with estimated financial resource requirements for each project. It is thus reviewed annually, making provision for the first year and estimates for the subsequent years. As a product the PSIP informs the development budget. 8

Chapter 2. The PSIP: Its Objective and Scope 2-2. Objectives and Functions The PSIP is a multi-faceted tool that fulfils the followings: A screening mechanism to verify that projects conform to Government priorities and that design standards are followed A programming tool to facilitate the scheduling of investments for consistency with overall and sectoral expenditure ceilings and absorptive capacity A recording system providing data on past and projected levels of public investments by the public sector and DPs A planning framework that helps formulate the development budget. A planning tool to facilitate project preparation and implementation for harmonised and complementary investments; and allows adequate lead-times for project design and funding. Resource mobilisation tool that indicates the gap between investment needs and available financing. 9

Chapter 2. The PSIP: Its Objective and Scope 2-3. Scope and Coverage The basic tenet of the PSIP is to facilitate the implementation of Government’s development strategies as outlined in long-term (vision statements) and medium-term development plans, sector plans, and programmes of work. The PSIP governs the procedures and processes for approving development initiatives proposed for implementation through the development budget ad management of such initiatives. 10

Eligibility of PSIP 1.Alignment to the overarching development strategy (MGDSII) 2.Development nature of the intervention 3.Magnitude (size) of intervention: The PSIP captures the projects which are supposed to be funded through Development Budget with an estimated cost of not less than an equivalent of USD 1 million for infrastructure projects and USD 0.5 million for service projects. 4.Source of the project: It will accept projects submitted by the Government MDAs at a central level, mandated to fulfill the objectives in the proposed project. It does not include private sector projects (except for PPP) The controlling officer or his/her designate will make formal submission of a proposal if a proposal has to meet this eligibility criteria. 11

Key PSIP Principles Project identification will be characterised by high levels of consultation A project should clearly address identified needs or seek to capitalize on identified new opportunities The nature of the project must be clearly within the government’s domain of interventions and not an activity better undertaken by the private sector (except for PPP) The availability of finance from a donor for a particular project should not be a determining factor in project identification No project will be funded unless it has been duly appraised and approved through the PSIP process. 12

Chapter 2. The PSIP: Its Objective and Scope 2-4. Project in relation to Programme A project is an individual investment plan with a set of related activities to be implemented within a specific period and limited input to achieve a specific goal. It is not a routine task. A programme is a comprehensive scheme within a sector or geographic area, being comprised of related projects and other development activities that share the same goal. A programme has a target within a certain scale of time, normally in medium-term or long- term and usually relate to upper strategies. A project is considered as an important means to fulfil the programme objective. The PSIP primarily deals with projects. However in the context of logical framework of development where super-ordinate programmes defined above integrate subordinate projects, such projects which belong to super-ordinate programme scheme shall also report the programme outline in addition to the detailed information of their own. 13

Chapter 2. The PSIP: Its Objective and Scope 2-5. PSIP relation to the Budget 14

Chapter 3. PSIP Project Proposal Formulation 3-1. PSIP Calendar The PSIP Calendar is a list of sequenced activities conducted by different stakeholders in a year on planning and management of PSIP The Calendar activities relate to: both (i) the PSIP under implementation as well as (ii) one being planned for. For (i), the quarterly progress reporting and half-yearly review of on-going projects with MDAs are included. For (ii), the focus on the quality of submission and requirement for inclusion in the budget is put for the planning year activities. The Calendar now indicates an initiator, involved institutions, purpose, and outputs of each event. 15

Chapter 3. PSIP Project Proposal Formulation 3-2. Guidelines on undertaking key events (for MDAs) Narrative explanation is given with regards to the following activities which are expected to be executed by MDAs to produce quality information for PSIP appraisal. 1)PSIP Circular No.1 2)Proposal Submission 3)Quarterly Performance Reporting 4)Ministerial Meetings 5)Feedback to Line Ministries 6)Final Budget Ceilings 7)PSIP Annual Review Meeting 8)Donor-funded Project Funding Information Update 16

Improvements made in 2014 for annual submission process (1) From 2015 PSIP formulation, MDAs are expected to make submission using newly developed MS Excel format of proposal templates Names of templates should indicate PSIP year, vote, new or on-going, and project name connected with underscores. This will allow easier file management and to indicate submission status on the PSIP website. New project proposal shall also be accompanied by: i.a Logical Framework and ii.an Activity/Item Costing Matrix 17

Improvements made in 2014 for annual submission process (2) Appraisal criteria for both new and on-going projects are also attached for reference. Two checklists are prepared for MDAs: i. firstly to check whether they filled in the templates properly, and ii.secondly to check whether they submitted all the necessary documents to accompany the templates For projects which are under a super-ordinate programme, a Programme Summary Form should also be submitted. 18

Improvements made in 2014 to reinforce appraisal of on-going projects – progress monitoring Quarterly progress report is included in the Handbook. The report format was produced after discussion and coordination with M&E Division. 19

Chapter 4. PSIP Process and Institutional Roles The roles were reviewed, updated, and simplified. They are explained by phase of i.Project identification and preparation ii.Project appraisal iii.Authorization for implementation iv.Project financing (disbursement) v.Project implementation vi.Monitoring and evaluation vii.Coordination Framework The summary is in Table 3. 20

4. Contents of PSIP Template User Manual October 2014 Version How to use the Template What to fill in the Template How to submit the Template 21

5. Contents of PSIP Appraisal Manual 22