Transcript Document

INDUCTION PACK 2
(I) The Funding Agreement
(II) Managing the Project Stages
THE NDPG PROJECT STAGES
Project
Appraisal
Project Concept
Pre-Feasibility
Detailed
Investigation
Business Plan
Implementation
Exit
Project Preparation: Three Step Process
Project
Verification
Step
Status Quo Step
Pre-Appraisal /
Business Case Step
Business
Plan
Step
Implementation Step
Exit Step
Immediate Interventions
2
STAGE 0: PROJECT APPRAISAL
PRE AWARD STAGE
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
MUNICIPALITY AND TREASURY SIGN FUNDING AGREEMENT (FA) AND
PRELIMINARY SCHEDULES
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
3
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
Grant transfer to the Municipality, more than one calendar month from the date of such invoice or request for draw-down,
projected by the most recent Milestone Payment Schedule, the National Treasury shall be entitled to withhold payment of
further transfers until such time as all required reports are submitted. All costs arising from such delayed payments shall be
for the account of the Municipality. 5.10
Should the Municipality not meet the agreed milestones on a monthly basis, as
required for Technical Assistance or quarterly, as required for the Capital Grant, the National Treasury shall be entitled to
withhold or delay payment of further invoices and/or transfers, in whole or in part, until such time as milestones are met. All
costs arising from such delayed payments and/or transfers shall be for the account of the Municipality.
4
THE FUNDING AGREEMENT SCHEDULES
1
General Project Description
Yes…ensure 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 ORGANIC…CAN BE CHANGED BUT ONLY IF SIGNED BY THE SAME PARTIES
WHO SIGNED THE FA…THE MM AND THE CD NDPG
5
A. YOU HAVE RECEIVED YOUR AWARD LETTER
B. YOU HAVE SIGNED THE FA
C. 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
Status Quo Step
Pre-Appraisal /
Business Case Step
Business Plan
Step
Implementation
Step
Exit Step
6
MANAGING THE PROJECT CYCLE: GUIDELINES ON % SPLIT
OF ALLOCATIONS OVER PROJECT LIFE CYCLE
TECHNICAL ASSISTANCE OUTPUTS
NDPG PROGRAMME MANAGEMENT
& COORDINATION
5%
20%
TOWNSHIP REGENERATION
STRATEGY AND IMPLEMENTATION
PLAN
REVIEW OF PROGRAMME AND
PROJECT STATUS QUO
30%
10%
10%
PRE-FEASIBILITY & DETAILED
INVESTIGATIONS
BUSINESS PLANS
EXIT PLANS & M&E
25%
CAPITAL GRANT OUTPUTS
1%
18%
1%
DETAILED DESIGNS
CONSTRUCTION SUPERVISION
CAPITAL FOR CONSTRUCTION
O&M
80%
7
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:
1.
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
2.
Status Quo Review: programme and project level assessment
Approx 10% of TA = R1.2m
3.
Feasibilities and other technical or sectoral studies
Approx 25% of TA = R3m
4.
Business Plans
Approx. 30% of TA = R3.6m
5.
Exit Reviews, Assessments
Approx 5% of TA = R600.000
6.
Township Renewal Strategy
Approx 10% of TA = R 1.2m
7.
Detailed design work to build asset funded by the capital
Approx 18% of the CG envelope of R150m = R27m
8.
Capital for construction
Approx 80% of R150 CG amount = R120m
9.
Outsourced Construction Management
Approx 1% of R150m CG = R1.5m
10.
Kick-start operating funding (BIDs, ops, etc.), if needed
Approx 1% of R150m CG = R1.5m
8
STAGE 1: PROJECT CONCEPT (TOOLKIT)
STATUS QUO STEP
PRE-FEASIBILITY
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
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
PARALLEL
DEVELOPMENT OF A
TOWNSHIP
REGENERATION
STRATEGY AND
IMPLEMENTATION PLAN
CAN COMMENCE HERE
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)
NDP Unit receives Final Status Quo report and reviews it
STRAGIEC REVIEW
BY THE NDPG UNIT
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
9
STAGE 2: DETAILED INVESTIGATION (TOOLKIT)
PRE-APPRAISAL STEP
Consultants appointed and / or briefed on PA step by Municipality
Pre- Appraisal Report
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
Draft Report with implications for project scope and concept
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
Submit final report to Municipal Council for information
Treasury and Municipality sign revised schedules
Amended schedules (V3)
CONTRACTUAL
APPROVAL
10
STAGE 3: BUSINESS PLAN
BUSINESS PLAN STEP
Business Plan contents and
aspects to be addressed
Appoint consultants to prepare Business Plan / extend appointment
Technical viability
Institutional arrangements
Financial viability
Financial Plan
Implementation 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
In line with funding envelope
Not in line with funding envelope then
apply for Exception
STRATEGIC REVIEW
BY NDPG
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
Capital Grant award to Municipality
Quarterly disbursements of CG to Municipality
Treasury monitoring of project
progress
CONTRACTUAL
APPROVAL BY NDPG:
CAPITAL GRANT TOTAL
AMOUNT IS CONFIRMED
11
STAGE 4: IMPLEMENTATION
IMPLEMENTATION
PSC and NDPG PD’s 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
PSC oversight and reporting to
Municipal Council
Stakeholder engagement
Municipality approves final design and NDP Unit provides inputs, if necessary
CONTRACTUAL
REVIEW
Project implementation /
construction
Achieve milestone payment points
Treasury Implementation review /
inspection (quality assurance)
Begin consideration of exit
requirements
Complete project
Project Handover
Submit project close out report with
all support documentation to
Municipality
Submit draft Exit Strategy to NDP Unit
and Municipality
NDPG Disburse payment to
Municipality
NDP Unit confirms close out
report submitted
NDP Unit considers draft
Exit Strategy
CONTRACTUAL
REVIEW
CONTRACTUAL
APPROVAL
CONTRACTUAL
REVIEW
12
STAGE 5: EXIT
EXIT STEP
Municipality and NDP Unit exit workshop
Municipality and NDP Unit review Exit Strategy
Municipality approves final Exit Strategy
NDP Unit receives copy
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
13