UNDP NEX Project Modalities in Pakistan

Presentation to

DTCE staff for Induction Training Programme

December 22, 2004December 22, 2004

National Execution (NEX) Modality

NEX modalityNEX modality is the implementation of UNDP assisted is the implementation of UNDP assisted development projects in collaboration with Economic Affair development projects in collaboration with Economic Affair Division, Government of Pakistan and National / Provincial Division, Government of Pakistan and National / Provincial executing agency (NEX) in a decentralized, flexible, accountable executing agency (NEX) in a decentralized, flexible, accountable and transparent manner. and transparent manner.

Project Cycle Operational Manual (PCOM)Project Cycle Operational Manual (PCOM) provides the detailed provides the detailed corporate guidelines and operational framework for corporate guidelines and operational framework for implementation of NEX projects.implementation of NEX projects.

Project Cycle Operations Manual (PCOM)

Catalogue of UNDP corporate procedures and guidelines, which Catalogue of UNDP corporate procedures and guidelines, which aims at improving the planning and management of UNDP aims at improving the planning and management of UNDP funded development cooperation in Pakistanfunded development cooperation in Pakistan

Upgrade and integrate relevant policies and procedures from Upgrade and integrate relevant policies and procedures from time to timetime to time

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

Project Cycle Operations Manual (PCOM)

Different Versions of PCOMDifferent Versions of PCOM

1.1. Version 1.0Version 1.0 June 1997June 19972.2. Version 2.0Version 2.0 July 1999July 19993.3. Version 3.0Version 3.0 July 2001July 2001

Volumes of PCOM 3.0Volumes of PCOM 3.0

Volume I -Volume I - Policies, processes and procedures for ProjectPolicies, processes and procedures for Project formulation and appraisalformulation and appraisal

Volume II - Volume II - Policies, processes and Procedure for Project Policies, processes and Procedure for Project implementationimplementation

Project Implementation Framework1.1. Economic Affairs Division (EAD)Economic Affairs Division (EAD)

Approve UNDP development assistanceApprove UNDP development assistance Supervise, monitor & evaluate UNDP development cooperation Supervise, monitor & evaluate UNDP development cooperation

through TPR meetingsthrough TPR meetings

2.2. National Executing Agency ( NEX)National Executing Agency ( NEX) Implement project activitiesImplement project activities Achieve project outputs, results and objectivesAchieve project outputs, results and objectives Legally accountable for use of development assistanceLegally accountable for use of development assistance

3.3. UNDP Country Office PakistanUNDP Country Office Pakistan Provide funding and assistance to to government in Provide funding and assistance to to government in

programming, resource mobilization, implementation and programming, resource mobilization, implementation and evaluation of development cooperationevaluation of development cooperation

Accountable to its Executive Board for utilization of UNDP Accountable to its Executive Board for utilization of UNDP resources provided to Pakistanresources provided to Pakistan

UNDP Role in Project Implementation1.1. Work Planning and ReportingWork Planning and Reporting

Annual and quarter work plansAnnual and quarter work plans Annual and quarter progress reportsAnnual and quarter progress reports Quarterly advancesQuarterly advances

2.2. Mobilization of Project InputsMobilization of Project Inputs International Inputs International Inputs (experts, consultants, oversees training & (experts, consultants, oversees training &

equipment)equipment) Local Inputs Local Inputs (Recruitment, subcontracting, training & equipment(Recruitment, subcontracting, training & equipment))

3.3. Financial Management Rules and ProceduresFinancial Management Rules and Procedures Implementation of financial rules and procedures that ensure the Implementation of financial rules and procedures that ensure the

discharge of accountabilities and be subjected to proper discharge of accountabilities and be subjected to proper accounting, reporting and auditing standardsaccounting, reporting and auditing standards

4.4. Other NEX Support Other NEX Support Assigning Program Officer in UNDP Country OfficeAssigning Program Officer in UNDP Country Office Monitoring Project activities, providing advice and coordinating Monitoring Project activities, providing advice and coordinating

supportsupport

Management Model for NEX Projects in Pakistan

Function Responsibility

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

1.1. Financial ManagementFinancial Management

2.2. In Country TravelIn Country Travel

3.3. Procurement of Equipment and ServicesProcurement of Equipment and Services

4.4. Sub-contracting/ OutsourcingSub-contracting/ Outsourcing

5.5. CCB Grant FundingCCB Grant Funding

6.6. Monitoring, Reporting and EvaluationMonitoring, Reporting and Evaluation

7.7. Resource MobilizationResource Mobilization

Financial ManagementA brief outline of financial management procedures is summarized below: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 Submission of quarterly financial, progress reports and other documents to UNDP

for record.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 Annual Tripartite Review Meeting by Economic Affairs Division, UNDP Country

Office and DTCE.Office and DTCE. NEX annual audit exercise.NEX annual audit exercise.

In-country TravelTravel Authorization: CEO, NPD & NPMTravel Authorization: CEO, NPD & NPM

  

Daily Subsistence Allowance (DSA)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 Other Incoming / Outgoing personnel or experts from other organizations and participants to DTCE meetings, seminars and workshops traveling on project related 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 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 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. 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 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 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 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 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 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. 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 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 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 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 be made however in case of use of personal car an amount of Rs. 3/- per km will be paid.paid.

   Maximum up to eighty percent of the full DSA may be paid to in-country travelers in 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 advance. The remaining 20 percent shall be paid upon submission of the claim for reimbursement of Travel Expenses and the back to office report.reimbursement of Travel Expenses and the back to office report.

In-country TravelDOCUMENTS REQUIRED BEFORE TRAVELDOCUMENTS 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 TRAVELDOCUMENTS REQUIRED AFTER TRAVEL

Duly completed F-10 Form and Field Visit Report. Duly completed F-10 Form and Field Visit Report. TRANSPORTTRANSPORT

An official vehicle shall be authorized by NPM/NPD for all official duties. The NPM must ensure that a 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.daily vehicle log giving details of usage and fuel consumption is maintained.

OTHERSOTHERS

When meals or any type of overnight accommodation are provided free of charge to 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 the traveler by DTCE/UNDP, any UN agency, Government, or any institution, the DSA rate payable shall be as follows:rate payable shall be as follows:

   1.1.  when accommodation only is provided, the DSA rate payable shall be 50%; 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%; and2. when meals only are provided, the DSA rate payable shall be 70%; and   3.3. when accommodation and meals are provided, the DSA rate payable shall when accommodation and meals are provided, the DSA rate payable shall

be 20%.be 20%.  

Procurement of Equipment and Services

1.1. Equipment Provision in Project DocumentEquipment Provision in Project Document2.2. Preparation of specificationPreparation of specification

a.a. Expendable EquipmentExpendable Equipment <US$ 400 or serviceable life of <US$ 400 or serviceable life of less than 5 yearsless than 5 years

b.b. Non-Expendable EquipmentNon-Expendable Equipment > US$ 400 or serviceable life of > US$ 400 or serviceable life of less than 5 yearsless than 5 years

3.3. Request for Proposal through Advertisement Request for Proposal through Advertisement (over US$ 15,000)(over US$ 15,000)

4.4. Project Procurement Committee Project Procurement Committee (below US$ 15,000)(below US$ 15,000)

5.5. Expanded Project Procurement Committee Expanded Project Procurement Committee (over US$ 15,000)(over US$ 15,000)

6.6. UNDP Contracts and Assets Procurement Committee UNDP Contracts and Assets Procurement Committee (over US$ (over US$ 29,999)29,999)

Procurement of Equipment and Services

7.7. Issuance of Purchase OrderIssuance of Purchase Order

8.8. Exemption from Taxes / Levies Exemption from Taxes / Levies

9.9. Receipt of Equipment at Project SiteReceipt of Equipment at Project Site

10.10. Payment to vendor(s)Payment to vendor(s)

11.11. Non-expendable Property LedgerNon-expendable Property Ledger

12.12. Transfer of Title of Equipment OwnershipTransfer of Title of Equipment Ownership

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

1.1. National Project ManagerNational Project Manager ChairpersonChairperson

2.2. Representative of NEX Representative of NEX MemberMember

3.3. Subject SpecialistSubject Specialist MemberMember

4.4. Long term Project StaffLong term Project Staff MemberMember

5.5. Project Admn./ Finance AssistantProject Admn./ Finance Assistant SecretarySecretary

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

1.1. National Project DirectorNational Project DirectorChairpersonChairperson

2.2. UNDP Assistant Resident RepresentativeUNDP Assistant Resident Representative MemberMember

3.3. Subject SpecialistSubject Specialist MemberMember

4.4. National Project ManagerNational Project Manager MemberMember

5.5. Project Admn./ Finance AssistantProject Admn./ Finance Assistant Secretary Secretary

Arranging Subcontracts

1.1. Provision of Sub-contracts in Project DocumentProvision of Sub-contracts in Project Document

2.2. Issuance of subcontracts in consultation with UNDP CO up to Issuance of subcontracts in consultation with UNDP CO up to (US$ 3,000) (US$ 3,000)

3.3. Request for Proposal through Advertisement Request for Proposal through Advertisement (over US$ 3,001)(over US$ 3,001)

4.4. Expanded Project Procurement Committee Expanded Project Procurement Committee (Between US$ 3,000 to (Between US$ 3,000 to US$29,999)US$29,999)

5.5. UNDP CAP Committee UNDP CAP Committee (over US$29,999)(over US$29,999)

6.6. Signing of SubcontractsSigning of Subcontracts

7.7. Exemption from Taxes/ Levies Exemption from Taxes/ Levies

8.8. Payment to vendor(s)/ firm(s)Payment to vendor(s)/ firm(s)

DTCE Grant FundingDTCE will provide grant money for the projects that will benefit the communities, in 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. terms of meeting the development needs and addressing their immediate problems. Grant Financing will be activated for Union approved CCB development projects in 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 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 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 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 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 Notified by the Provinces. This tripartite agreement will be based on the following conditions:conditions:

  Role of Local GovernmentRole of Local Government

1.1. Concerned Local Government has made the sectoral classification and Prioritization Concerned Local Government has made the sectoral classification and Prioritization for the CCB projects. for the CCB projects. 

2.2. Formation of monitoring committees for CCB projects. Formation of monitoring committees for CCB projects. 3.3. Resolution of the concerned LG for approval of the project Resolution of the concerned LG for approval of the project 4.4. District Government has registered the CCB. District Government has registered the CCB. 5.5. Resolution of the concerned LG for approval of the project. Resolution of the concerned LG for approval of the project. 6.6. Tripartite agreement on CCB Form 5 Tripartite agreement on CCB Form 5 7.7. The concerned Local Government contributes a share from the 25% development The concerned Local Government contributes a share from the 25% development

funds reserved for CCB projects. funds reserved for CCB projects. 8.8. Respective Union/Tehsil/District council will expedite and facilitate the projects Respective Union/Tehsil/District council will expedite and facilitate the projects

undertaken by CCBs with DTCE grant money and monitor their progress till undertaken by CCBs with DTCE grant money and monitor their progress till completion. The concerned council will ensure the utilization of grant money provided completion. The concerned council will ensure the utilization of grant money provided by DTCE to maximize the impact of benefits to communities.by DTCE to maximize the impact of benefits to communities.

DTCE Grant FundingRole of CCBRole of CCB  

9.9. CCB Registration. CCB Registration. 

10.10. Identification of project by the CCB along with resolution duly approved by the CCB. Identification of project by the CCB along with resolution duly approved by the CCB. 

11.11. Project Proposal on CCB Form 4. Project Proposal on CCB Form 4. 

12.12. Project Cost estimates should be signed by the concerned authority. Project Cost estimates should be signed by the concerned authority. 

13.13. Community participation equivalent to 20% of the project cost is provided for. Community participation equivalent to 20% of the project cost is provided for. 

14.14. The project falls in priority areas of the Local Government.  The project falls in priority areas of the Local Government.  

The following operating procedures will be adopted for the review, approval and The following operating procedures will be adopted for the review, approval and payment of grant money to CCBs: payment of grant money to CCBs: 

1.1. Manager FOT will review the CCB project/ proposal and forward to Director Manager FOT will review the CCB project/ proposal and forward to Director Community and Local Government Relations(C&LGR) with his recommendations. Community and Local Government Relations(C&LGR) with his recommendations. 

2.2. Director C&LGR will approve/disapprove the project in consultation with CEO and Director C&LGR will approve/disapprove the project in consultation with CEO and PMU. PMU. 

3.3. CEO/Dir. CLGR will forward the proposal to PMU for release of payments to the CEO/Dir. CLGR will forward the proposal to PMU for release of payments to the concerned parties as given in MOU/contract. concerned parties as given in MOU/contract. 

4.4. As soon as the funds are received in the bank account of CCB (one basic account on 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 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.along with a copy of bank’s deposit slip and communicate the transaction to DTCE.

Monitoring, Reporting and Evaluation

1.1. Annual and Quarterly Work PlansAnnual and Quarterly Work Plans

2.2. Yearly Review Meetings of UNDP Country OfficeYearly Review Meetings of UNDP Country Office

3.3. Annual/ quarterly reviews by the BoD Annual/ quarterly reviews by the BoD

4.4. Project Progress Reporting Project Progress Reporting

5.5. Monitoring Visits of UNDP Country OfficeMonitoring Visits of UNDP Country Office

6.6. Tripartite Review MeetingsTripartite Review Meetings

7.7. Annual Financial/ Performance AuditAnnual Financial/ Performance Audit

8.8. Mid-term Project Evaluation/ Visits of CO Evaluation Mission(s)Mid-term Project Evaluation/ Visits of CO Evaluation Mission(s)

9.9. Terminal Project ReportsTerminal Project Reports

Merits of NEX Modalities

1.1. Availability of detailed implementation framework with well defined Availability of detailed implementation framework with well defined corporate guidelinescorporate guidelines

2.2. Standardization of business processesStandardization of business processes

3.3. Enhanced coordination and reporting mechanismEnhanced coordination and reporting mechanism

4.4. Higher transparency and accountability Higher transparency and accountability

5.5. Improved time managementImproved time management

6.6. Flexibility in planning and budgetingFlexibility in planning and budgeting

7.7. Greater financial autonomyGreater financial autonomy

8.8. Better organizational citizenshipBetter organizational citizenship

9.9. Improved benefits and perks to project staffImproved benefits and perks to project staff

10.10. Efficiency in achieving project outputs and objectivesEfficiency in achieving project outputs and objectives

11.11. Empowerment to project managementEmpowerment to project management

Demerits of NEX Modalities

1.1. Difficulty in synchronization of NEX modalities and executing Difficulty in synchronization of NEX modalities and executing agency’s working approachesagency’s working approaches

2.2. Lengthy processes to some extentLengthy processes to some extent

3.3. Empowerment versus mis-management of resourcesEmpowerment versus mis-management of resources

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