UNDP NEX Project Modalities in Pakistan Presentation to DTCE staff for Induction Training Programme December 22, 2004

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. 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.

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 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 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 Intended users are government agencies, UNDP and UN specialized agencies and projects staff and consultants

Project Cycle Operations Manual (PCOM) Different Versions of PCOM 1.Version 1.0June Version 2.0July Version 3.0July 2001 Volumes of PCOM 3.0 Volume I - Policies, processes and procedures for Project formulation and appraisal formulation and appraisal Volume II - Policies, processes and Procedure for Project implementation

Project Implementation Framework 1. Economic Affairs Division (EAD) Approve UNDP development assistance Approve UNDP development assistance Supervise, monitor & evaluate UNDP development cooperation through TPR meetings Supervise, monitor & evaluate UNDP development cooperation through TPR meetings 2. National Executing Agency ( NEX) Implement project activities Implement project activities Achieve project outputs, results and objectives Achieve project outputs, results and objectives Legally accountable for use of development assistance Legally accountable for use of development assistance 3. UNDP Country Office Pakistan Provide funding and assistance to to government in programming, resource mobilization, implementation and evaluation of development cooperation 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 Accountable to its Executive Board for utilization of UNDP resources provided to Pakistan

UNDP Role in Project Implementation 1. Work Planning and Reporting Annual and quarter work plans Annual and quarter work plans Annual and quarter progress reports Annual and quarter progress reports Quarterly advances Quarterly advances 2. Mobilization of Project Inputs International Inputs (experts, consultants, oversees training & equipment) International Inputs (experts, consultants, oversees training & equipment) Local Inputs (Recruitment, subcontracting, training & equipment ) Local Inputs (Recruitment, subcontracting, training & equipment ) 3. 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 Implementation of financial rules and procedures that ensure the discharge of accountabilities and be subjected to proper accounting, reporting and auditing standards 4. Other NEX Support Assigning Program Officer in UNDP Country Office Assigning Program Officer in UNDP Country Office Monitoring Project activities, providing advice and coordinating support Monitoring Project activities, providing advice and coordinating support

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

NEX Project Management and Administration Policies 1.Financial Management 2.In Country Travel 3.Procurement of Equipment and Services 4.Sub-contracting/ Outsourcing 5.CCB Grant Funding 6.Monitoring, Reporting and Evaluation 7.Resource Mobilization

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

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. 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. 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. 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.

In-country Travel DOCUMENTS REQUIRED BEFORE TRAVEL Travel clearance by CEO on Inter Office Memo/Travel Authorization Form. Travel clearance by CEO on Inter Office Memo/Travel Authorization Form. Travel Authorization by NPD and NPM on duly completed 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. 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. 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: 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%; 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 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%. 3.when accommodation and meals are provided, the DSA rate payable shall be 20%.

Procurement of Equipment and Services 1.Equipment Provision in Project Document 2.Preparation of specification a.Expendable Equipment <US$ 400 or serviceable life of less than 5 years b.Non-Expendable Equipment > US$ 400 or serviceable life of less than 5 years 3.Request for Proposal through Advertisement (over US$ 15,000) 4.Project Procurement Committee (below US$ 15,000) 5.Expanded Project Procurement Committee (over US$ 15,000) 6.UNDP Contracts and Assets Procurement Committee (over US$ 29,999)

Procurement of Equipment and Services 7.Issuance of Purchase Order 8.Exemption from Taxes / Levies 9.Receipt of Equipment at Project Site 10.Payment to vendor(s) 11.Non-expendable Property Ledger 12.Transfer of Title of Equipment Ownership

Project Procurement Committee (US$ 501-US$ 15,000) 1.National Project ManagerChairperson 2.Representative of NEX Member 3.Subject SpecialistMember 4.Long term Project StaffMember 5.Project Admn./ Finance AssistantSecretary

Expended Project Procurement Committee (US$ 15,001-US$ 29,999) 1.National Project DirectorChairperson 2.UNDP Assistant Resident RepresentativeMember 3.Subject SpecialistMember 4.National Project ManagerMember 5.Project Admn./ Finance AssistantSecretary

Arranging Subcontracts 1.Provision of Sub-contracts in Project Document 2.Issuance of subcontracts in consultation with UNDP CO up to (US$ 3,000) 3.Request for Proposal through Advertisement (over US$ 3,001) 4.Expanded Project Procurement Committee (Between US$ 3,000 to US$29,999) 5.UNDP CAP Committee (over US$29,999) 6.Signing of Subcontracts 7.Exemption from Taxes/ Levies 8.Payment to vendor(s)/ firm(s)

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 Role of Local Government 1.Concerned Local Government has made the sectoral classification and Prioritization for the CCB projects. 1.Concerned Local Government has made the sectoral classification and Prioritization for the CCB projects. 2.Formation of monitoring committees for CCB projects. 2.Formation of monitoring committees for CCB projects. 3.Resolution of the concerned LG for approval of the project 3.Resolution of the concerned LG for approval of the project 4.District Government has registered the CCB. 4.District Government has registered the CCB. 5.Resolution of the concerned LG for approval of the project. 5.Resolution of the concerned LG for approval of the project. 6.Tripartite agreement on CCB Form 5 6.Tripartite agreement on CCB Form 5 7.The concerned Local Government contributes a share from the 25% development funds reserved for CCB projects. 7.The concerned Local Government contributes a share from the 25% development funds reserved for CCB projects. 8.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.

DTCE Grant Funding Role of CCB Role of CCB 9.CCB Registration. 9.CCB Registration. 10.Identification of project by the CCB along with resolution duly approved by the CCB. 10.Identification of project by the CCB along with resolution duly approved by the CCB. 11.Project Proposal on CCB Form Project Proposal on CCB Form Project Cost estimates should be signed by the concerned authority. 12.Project Cost estimates should be signed by the concerned authority. 13.Community participation equivalent to 20% of the project cost is provided for. 13.Community participation equivalent to 20% of the project cost is provided for. 14.The project falls in priority areas of the Local Government. 14.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: The following operating procedures will be adopted for the review, approval and payment of grant money to CCBs: 1.Manager FOT will review the CCB project/ proposal and forward to Director Community and Local Government Relations(C&LGR) with his recommendations. 1.Manager FOT will review the CCB project/ proposal and forward to Director Community and Local Government Relations(C&LGR) with his recommendations. 2.Director C&LGR will approve/disapprove the project in consultation with CEO and PMU. 2.Director C&LGR will approve/disapprove the project in consultation with CEO and PMU. 3.CEO/Dir. CLGR will forward the proposal to PMU for release of payments to the concerned parties as given in MOU/contract. 3.CEO/Dir. CLGR will forward the proposal to PMU for release of payments to the concerned parties as given in MOU/contract. 4.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 bank s deposit slip and communicate the transaction to DTCE.

Monitoring, Reporting and Evaluation 1.Annual and Quarterly Work Plans 2.Yearly Review Meetings of UNDP Country Office 3.Annual/ quarterly reviews by the BoD 4.Project Progress Reporting 5.Monitoring Visits of UNDP Country Office 6.Tripartite Review Meetings 7.Annual Financial/ Performance Audit 8.Mid-term Project Evaluation/ Visits of CO Evaluation Mission(s) 9.Terminal Project Reports

Merits of NEX Modalities 1.Availability of detailed implementation framework with well defined corporate guidelines 2.Standardization of business processes 3.Enhanced coordination and reporting mechanism 4.Higher transparency and accountability 5.Improved time management 6.Flexibility in planning and budgeting 7.Greater financial autonomy 8.Better organizational citizenship 9.Improved benefits and perks to project staff 10.Efficiency in achieving project outputs and objectives 11.Empowerment to project management

Demerits of NEX Modalities 1.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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