IBSA TRUST FUND. Programme Guidelines
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1 IBSA TRUST FUND Programme Guidelines Introduction: The objective of this document is to provide a detailed outline of the modes of operation and implementation of projects to be funded from the IBSA Trust Fund and managed by the Special Unit for South-South Cooperation. The India, Brazil and South Africa Facility for Poverty and Hunger Alleviation (IBSA Trust Fund) was created out of the IBSA Dialogue Forum in March 2004 by Prime Minister of India, President of Brazil, and President of South Africa. Its purpose is to identify replicable and scalable projects that can be disseminated to interested developing countries as examples of best practices in the fight against poverty and hunger. The Fund, as an example of cooperation among three developing countries, constitutes a pioneer and unique initiative to enhance south-south cooperation for the benefit of the neediest nations of the south. This document will be a step-by-step guide to undertake project management, such as project identification, formulation, design, approval, implementation and completion. 1
2 IBSA Trust Fund Project Management Cycle Selected Activities and Roles * Project Activities Project Identification Approve identification of projects Approval of Concept paper/project proposal Pipeline record Focal Points Board of Directors South- South Executing Agency Implementing Partner Project Formulation Identification of capacities among IBSA countries institutions Identification of partnerships Negotiation/Clearance of agreements Executing Modality Prodoc formulation Pre-PAC Approval of PRODOC Project Execution Project Monitoring Reports Budget revisions, Project Period Extension Approval Budget Revisions, Project Period Extension Monitoring & Reporting Collection and compilation of workplans from Executing agency Collection and compilation of monitoring reports from Executing agency Report to Focal Points Closing a Project Produce the Final Report Prepare the Final Revision Approval of Final Revision, Project Extension or completion * This selection of activities emphasizes the collaboration with the Trust Fund Management South-South. Other relevant activities and roles are being undertaken formally and informally. Major responsible Collaborator 2
3 The purpose of the Fund The Fund will identify replicable and scaleable projects to be disseminated in interested developing countries as examples of best practices in the fight against poverty and hunger. Projects under the IBSA Trust Fund are meant to be carried out in collaboration and consultation with partner countries, through South-South Cooperation mechanisms. Organization and Roles A Board of Directors was appointed to govern the Fund. The Board of Directors is composed of the designated representatives of the Governments of India, Brazil and South Africa as originators of the Fund. The Board reports to the three IBSA Focal Points on a regular, individual basis by keeping them informed of the outcomes of Board meetings, all reports and of new developments. The three IBSA Focal Points are the Senior official representatives of the respective governments of the IBSA Dialogue Forum who meet on a regular basis to advance the IBSA agenda. They also have regular consultations at Ministerial (Trilateral Joint Commission) and Head of State and/or Government (Summit) levels. The IBSA Dialogue Forum serves as a mechanism for political consultation and co-ordination, including on multilateral issues, as well as for strengthening co-operation in sectoral areas and to improve economic, social, technological, environmental and other relations between India, Brazil and South Africa. The Special Unit for South-South Cooperation, which is mandated by the General Assembly to promote South-South Cooperation globally, has been entrusted by UNDP to manage the IBSA Trust Fund. The Special Unit also functions as a Secretariat of the Board of Directors. In these capacities, it is responsible for the follow-up and overseeing the projects implemented under IBSA Trust Fund, in order to report on their implementation to the Board. Eligibility to the Fund Local/national stakeholder(s) or governmental institutions in any developing country. 3
4 I. Project Identification According to the IBSA Trust Fund Project Management Cycle, IBSA Focal Points are primarily responsible for approving the identification the identification of South-South cooperation initiatives. Thus, the Focal Points in IBSA capitals may approve or disapprove the identification in unilateral or multilateral demarches of potential initiatives to be presented to IBSA TF. Concept paper/project Idea The Focal Points can also identify potential initiatives by themselves or they may request a local partner to prepare a concept paper/project idea. Local/national stakeholders or governmental parties in potentially beneficiary countries of IBSA initiatives may also approach, each or all of the IBSA Focal Points in order to present its concept paper/project idea. Project Proposal Initially a project proposal is developed prior to a full project document. The IBSA Focal Points could then, once the project proposal has been agreed upon in principle, identify capacities among IBSA countries institutions, which would become partners in the project implementation as executing agencies and/or an implementing partners. The Executing Agency/ies identified by the Focal Points in collaboration and consultation with partner countries should then write the project proposal (Annex 1) based on the concept paper/project idea. Approval of Project proposal The project proposal should be sent to the members of the Board by the Focal Points through their Missions. The members will consider/revise the proposal politically and decide on its submission to the Board of Directors for approval. After its approval by the Board, the project proposal should be recorded by the SU/SSC as a pipeline project. II. Project Formulation and Approval Project Documents After the approval of the project proposal and in collaboration with the national government of the receiving country, the Executing Agency drafts a full project document (Annex 2) with Annual Work Plan (AWP) in accordance with the standard template (Annex 3) and submits it to the SU/SSC for review. The project document outlines the outcome(s), strategy, activities, budget, log-frame and management arrangement for implementation (which includes 4
5 roles of the IBSA partners in the project execution) and as such the project document is one of the most important reference documents that a manager refers to. It is important that the project document is clear about the information required. The AWP is required to be presented with the project document proposal annually as it is an important monitoring/managerial tool. The AWP provides detailed activity planning and sets out what will be accomplished during the year for a result or set of results identified in the project. The AWP contains: The expected outputs The activities to be carried out towards achievement of the expected outputs The time frame for undertaking the planned activities Those responsible for carrying out the activities, and The inputs to be provided for each activity. The AWP provides the basis for the requisition of inputs (cash, supplies, contracts, travel, personnel) and disbursement of funds to carry out planned activities. Approval of Project Document Subsequent to the final project document being reviewed by SU/SSC, SU/SSC and the Executing Agency organize a Pre-Project Approval Committee (Pre-PAC) to improve the quality of the project for sustainability and a larger impact. At the recommendation of the Pre-PAC, the Board of Directors approves the project. III. Project Execution Modalities of execution: Direct execution (DEX): The administrator may select UNDP as the executing entity. It may be considered when the situation calls for speed of delivery and decisionmaking where UNDP management is necessary for mobilizing resource and national authorities lack the capacity to carry out the project. National Execution (NEX): is used where there is adequate capacity in government to undertake the functions and activities of the programme or project. Agency execution: UN agencies may managed projects where the activities require expertise that is specific to the agency and access to international networks, the government lacks the required management or substantive capacity or where the parties prefer agency execution. NGO execution: is considered when NGO has the useful expertise (e.g. participatory methodology) and close interaction with target groups such as the poor, and therefore would benefit from the established contacts with grass-roots associations. 5
6 After the Board of Directors endorses a project document, the project document is signed by the Host Government and the Executing Agency and the project commences. In the case of Direct Execution (DEX), the project document could be signed solely by the UNDP Country Office after duly approved by Host Government and authorized by SU/SSC. A copy of the project document should be sent to Special Unit for the records. Upon receiving a copy of the signed project document, the SU/SSC will inform the Executing Agency of the funding approval and commencement of the project. In the case of a networking project, a launching ceremony is held in which the stakeholders sign a Memorandum of Understanding or Memorandum of Agreement to confirm their participation in the project. The Executing Agency will start execution and will also sub-contract if needed. The executing agency will also be responsible for recruiting consultants and paying the costs to the implementing agency. The implementing agency will sub-contract as needed and procure consultants. After the project document is signed and launched, a project management unit is established to include a coordinator and other staff as needed to manage the implementation of the project. With a view to ensure national ownership, the beneficiary country should also indicate a counterpart and/or if possible to be part of the unit. Definitions: Executing agency: responsible for the overall implementation, including budget management. Implementing agency: responsible for implementing activities in the project document. Should submit a work-plan at the begging of the project. IV. Monitoring and Reporting Planning for monitoring is usually done at the project design phase as previously stated and falls under the realm of the Executing Agency responsibilities. Some important elements of monitoring include: good design, regular field visits, contentious documentation, regular analysis of reports and compliance with recommendations proposed in pertinent auditing documents. The Executing Agency is responsible for monitoring the project and reviewing the evaluation report as well as the completion report. The host government also has an important role in the monitoring phase and its participation must be assured. The implementing agency submits progress reports (Annex 4) every 6 months to the Executing Agency. These reports should be sent to the Special Unit for its records. 6
7 The SU/SSC is responsible for the collection and compilation of the workplans, progress reports, evaluation report and completion report, which will be reported to the Board of Directors. The Board of Directors would also keep the respective Focal Points informed of all such reports, for information and possible follow-up action. V. Project Revision A Project Document may be revised at any time by agreement of the Board of Directors and among the signatories to the document as appropriate. The purpose of revising it is to make substantive or financial adjustments and improvements to a project. Substantive revisions (Annex 5) are made in response to changes in the development context or to correct flaws in the design that emerge during implementation. Examples of such flaws justifying revision are outcomes, outputs, strategies, activities under the unexpected changes of conditions and/or assumptions. Substantive revisions may be prompted by reports, or by monitoring, evaluation or review activities. The designated institution/implementing partner is expected to raise the issue in the occasional/annual project report. Substantive revisions are reflected in a revision document describing changes in the relevant sections of the Project Document and/or Annual Work-plan (AWP). The revision document is signed by all the signatories to the original Project Document after duly approved by the Board of Directors, following consultation with the respective IBSA Focal Points. In order for a revision to be granted, the Executing Agency must submit a request to the SU/SSC. The SU/SSC will review the request and submit it to the Board of Directors who will decide on granting a revision. Extension The parties may decide to extend the project duration to take into account delays in implementing certain activities to accomplish the intended results. If such extensions do not entail a change in the overall budget (only re-phase the activities), they may be signed by the Executing Agency provided the SU/SSC has been notified and approved it. In order for an extension with additional funds to be granted, the Executing Agency must submit a request to SU/SSC. SU/SSC will review the request and submit it to the Board of Directors who will decide on granting an extension and additional funds, following consultation with the respective IBSA Focal Points. 7
8 VI. Closing a Project (Completion and Final Reporting) Once a project is completed, the implementing agency submits a completion report (Annex 6) to the host government for feed back and comments. Whenever UNDP is involved as a partner in the activities of the project, the completion report should reflect such participation. After duly reviewed by the host government, the completion report and a request of the project closure are sent to the executing agency that reviews and submits it to SU/SSC. The executing agency will review the project account and submit a financial report to SU/SSC. SU/SSC will review the completion report and comment whether relevant or not. After recognition of the satisfactory achievement, the Executing Agency will inform the implementing agency to close the project. SU/SSC will submit all documents to the Board of Directors for approval. SU/SSC will inform the Executing Agencies as soon as approved by the Board of Directors. All the projects are required to submit a completion report within six months together with a financial statement, which will be submitted to the Board of Directors, for onward transmission to the respective IBSA Focal Points. 8
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