crzm gj proiect ro 2002/000- 586.05.02.02 - 162 1 european structural funds and its programme,...
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CRZM GJ Proiect RO 2002/000-586.05.02.02 - 162
1
European Structural Funds and its Programme, Grants, and
Project Cycle Mangement
Romania, September , 2005
CRZM Gorj & DFC Corporate Solutions
Proiectul “Centru de consiliere si sprijin pentru intreprinzatori”
Phare RO-2002/000-586.05.02.02-162,
UNIUNEA EUROPEANA GUVERNUL ROMANIEI
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Table of ContentsPART I
1. Definitions and Terminology of EC funded Projects2. Main Financial Support Programmes and Iniciatives for Members and non-
members States3. Structures and key procedures of the European Structural Funds and EC
Iniciatives4.Tools and Techniques for Various types of Project preparation and
management
PART II
5. Overview of the EC Project Cycle Management 6. Project Identification, Formulation and Analysis Tools8. Project Planning Tools9. Project Fiches and Terms of References10. Implementation, Monitoring and Evaluation11. Economic and Financial Analysis of Projects12. Conclusions
PART I
THE EU FINANCIAL SUPPORT PROGRAMMES
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The EU Budget 2000 - 06 Average annual budget 100.400 million €
Common Agricultural Policy
Internal Market Policies
External Actions/EUROPEAID
Administration
Reserves
Pre Accession/Phare, ISPA, Sapard
Enlargement/New Members
42.4%
30.3%
4.6%4.8%
0.6%
3.1%8.3%
STRUCTURAL AND COHESION FUNDS
6.0%
•The EU Budget finances Internal Actions, Structural and Cohesion, the CAP, External Actions, Enlargement Pre-Accession and Administration - this amounts to around 100 billion EUR per year/ 200 billion for Structural and Cohesion funds for the 7 years.
Definitions and Terminology of EU- Funded Projects
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E. Commission Budget
Temporary Human
Resources
Loans and Shareholdings
Studies and Direct Actions
Structural and Financial
Support Programmes
Paid directly to the beneficiary
by the Commission
Paid to the beneficiary indirectly, either through a Member State, a foreign
government, or an agency appointed by a State, in decentralized programmes
(transfers)
Introduction: Review of European Structural Funds and other external Programmes
Common Agricultural
Policy- Guidance section
Of the overall EC Budget, spent in grants, tenders and studies are most of the structural funds and other financial support schemes, the CAP-
Guidance section, and Studies and direct actions
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European Commission
European Commission
National –decentralised management
Direct Actions (Pilot,
Innovative….)E. Commission management
Mixed management
Programmes, actions and other support activities
called and negotiated directly
in Brussels
PUBLICATION: E.U. Official
Journal
Management and Official
Announcement: Commission
Structural and Cohesion Funds:
ERDF, ESF, Fisheries and
EAGGF
PUBLICATION: in national and
regional Journals
Management and Official
Announcement:
National Government and Regions (RDAs)
E.U. Initiatives: 5% of Structural funds
PUBLICATION: E.U. Official Journal,
National Journals
Management and Official
Announcement: Commission plus
Regional and national units of
coordination
Budgetary lines, funds not
exhausted, pilot projects
Publication in EU website
Management and PUBLICATION:
Commission and European Parliament
EU Grants and Programmes
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The EU Budget : Main support programmes and initiatives
• Indirect Support Programmes: - Specific budget assigned to Member States- Member States must propose their budget support priorities
- EU Commission can accept ,reject or adapt MS´s proposals)
• Direct Support Programmes:
- Directly applied to EU Administration
- Proposals to Brussels / Luxemburg
- Support Funds and Programmes given to the best projects, Europe wide
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Main support programmes and initiatives
Direct Support Programmes
• EC Initiatives (5% of Structural funds)
• Direct Programmes – Framework programme R+D (now to the VIIth)– TEN-TELECOM– LIFE– ALLURE– SAVE– LEONARDO– ALFA– JOPP – ECIP– CDI
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Main support programmes and initiatives
Direct Support Programmes (2)
– ENTERPRISE INNOVATION– EUROPARTENARIAT– ETP - Japan– PHILOXENIA - Tourism– CULTURE 2000– EURATHLON– ENVIROMENTAL NGO´s GRANTS– MEDIA– etc...
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Structural & Cohesion Funds
• Indirect Funds : - Specific budget assigned to Member States
- Member States must propose their budget support priorities
- EU Commission can accept ,reject or adapt MS´s proposals
- Some budget funds applied directly to EU commission managed projects (ex.european key road network)
- The rest of fund programmes ,managed by National and /or Regional Administrations
Purpose: reduce developmet and and life condititons disparities among Member States..Convergence
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Structural & Cohesion Funds
• 1999 Reform Objectives:
- Improve Efficiency of Structural Support Measures: - More focus and concentration,- Beurocratic simplification- Decentralization of management
- Maintain Economic and Social Cohesion Support
- Include Regional Cohesion Financial support to future Member States
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Structural & Cohesion Funds
ERDF ESF
EAGGF
FIFG
STRUCTURALFUNDS
(Obj.1, 2, 3)
COHESION FUNDS < 75% average GDP26,5 M EUR for 2000/6 195 M EUR for 2000/6
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Structural Funds 2000- 06
Reserves for effective projects (4%)
General Programmes (90%), as presented in General Community Support (GCS) or the Single Programming Document (SPD) (for small countries)
Community Initiatives (5,35%): measures proposed by the EC and managed jointly: they are four in 2000/06; Interreg III, Urban II, Equal , Leader+. They are planned to disappear in 2006?
Innovative actions (0,65%), Pilot Projects and studies
These funds are partially disbursed by national and regional governments as tenders, grants, studies and other forms of financial support.
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Structural Funds
• There are 4 Structural Funds namely:
- European Agricultural Guidance and Guarantee Fund (EAGGF);
- Financial Instruments for Fisheries Guidance (FIFG);
- European Regional Development Fund (ERDF);
- European Social Fund (ESF).
Adjoining the four Structural Funds, the Cohesion Fund provides structural assistance to the four least developed Member States - Portugal, Spain, Greece and Ireland, financing projects concerning the environment or transport infrastructure. The Transition Facility Fund is targeted to enhance the capacity building of Accession States
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Structural Funds
• European Regional Development Fund (ERDF): Aims to reduce socio-economic imbalances between regions of the Union: essentially it is aimed at business growth and economic regeneration.
• European Social Fund (ESF): Aims to put people into employment by developing skills and training opportunities by supporting: Active labour market policies; Equal opportunities for all and promoting social inclusion; Improving training and education and promoting lifelong learning; Adaptability and entrepreneurship; Improving the participation of women in the labour market.
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Structural Funds
European Agricultural Guidane and Guarantee Fund (EAGGF) It is included within the CAP ,and Aims to finance rural development projects ,such a s young farmers,,investments and training, rural product marketing,and rural areas development. (including the LEADER+ ,EU Initiative).
• Financial Instruments for Fisheries Guidance (FIFG)
Aims to finance fleet modernization,fishing quotas programmes,protection specail marine cultivation ,area protection.It is an instrument to complement the Overall EU Fishing Policy.Marketing and Promotion of products,Port infrastructure investment
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Structural Funds
• Funding: Between 2000 and 2006, 95% of the Structural Funds finance, is distributed according to, the EU's 3 'Objectives‘, of which, 5% is allocated on community initiatives.
• Objective 1 is funded by ERDF: Allocated to regions where gross domestic product per head is less than 75% of the EU average.
• Objective 2 is funded principally by ERDF and also by ESF: The Funds aim to help reduce the gaps in socio-economic development between the various regions and member states. It covers 18% of the European population.
• Objective 3 is funded by ESF: The objective is aimed at funding training and skills development.
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Structural Funds
(% )
69,7
11,5
12,3 0,5
Objective 1 Objective 2Objective 3 Fisheries
195.00O Million € ,2000-06
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SAMPLE EC PROGRAMMES
EUROPEAN COMISSION
EUROPEAID
•Tacis
•ALA
•Meda
•Cards/ EAR
•FED
DG ENLARGEMENT
•Phare (incl. Twinning)
•ISPA
•Sapard
•Transition facility
DG REGIO
• Structural funds
•Interreg III
• URBAN
DG RESEARCH DG ENTERPRISE DG EDUCATION
VIth Framework Pr. Competitiveness & Entrepreneurship Leonardo
Innovation, etc Tempus, etc.
DG EMPLOYMENT, etc.
•Social Fund
•Equal
DG AGRICULTURE
•Leader +
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Proposed SF Budget 2007 - 2013
• Discussions of the new 2007-13 Budget are still on-going, with the following last proposals by the EC (Billion EUR):
•Regions subject to statistical effect: 22.14•Cohesion Fund: 62.99•Special programme for outermost regions: 1.1•Regions outside convergence: 48.31•‘Phasing- in’ for regions that were Objective 1 between 2000- 2006: 9.58•Cross-border cooperation: 4.7•External borders: 1.6•Transnational cooperation: 6.3•Networks: 0.6•Regions below 75 % of average GDP (Obj. 1): 177.8
TOTAL 2007-13 : 336.1 Billion EUR
•EAGGF, FIFG and the Initiatives disappear, with only ERDF, ESF and Cohesion Fund remaining, plus a fund for cross-border cooperation (EGCC).
How much will Romania finally get?
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Structural Funds
• Clarity – Member States & enterprises must understand why an incentive has been introduced, what it seeks to achieve and the activities it is able to support
• Simplicity – The incentive should not be too complex to administer. It should be simple and fast to apply as otherwise the take-up rates would be low
• Certainty – Mechanisms must be put in place to limit the amount that an incentive will cost. Enterprises need to obtain a quick decision from Member States as to whether an activity qualifies for support or not
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Structural Funds
• Compliance – Any scheme must comply with relevant national and EU legislation in force, including EU State Aid
• Non-discriminatory - Schemes should not benefit one firm at the expense of another, nor adversely distort existing market factors
• Effectiveness – A measure of the number of benefiting firms, a method of impact assessment and cost monitoring
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Structural Funds
• All programmes co-financed within SF,are responsability of the Institutions of the State Members.They propose and classify the projects within the National/Regional Strategic Plans and select the best projects.
• All projects financially supported by EU,must be co-financed by local public or private sector.
• The Follow up Committee supervises and controls the implementation.
• SF are not reimbursable.
• In each Member State ,social and economic players can propose and obtain SF support ,through the appropriate authorities on each Programme.
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Structural Funds
EUROPEAN COMMISSION
STATES AND ITS REGIONS
FOLLOW UP COMMITTEES
Negotiates, approves, assigns& pays
manage, select, Implement &evaluate
Follow up
MANAGEMENT AUTHORITIESApplication of
Programme complement
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Structural Funds
• 1.- EU Commission decides SF Regulations.
• 2.- EU Commission designs Priorities for each Objective.
• 3.- Member States design their own National Strategies and negotiate with the EU Commission their own priorities, financial assignments and implementation rules.
• 4.- Documents for Programming:
They describe the socio-economic context of the country or of the target regions of the SF ,according with the EU Objectives,pointing out priorities,objectives,management and financial tools,implementation,evaluation and control systems.
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Structural Funds
• 5.- Member States create a document for each Programme called:Programme Complement, elaborated by the Institution that manages them locally.
• 6.- Annual Management Report
• 7.- Follow up Committee Report
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Structural Funds
Co-financing– Objective 1: up to 75% total cost, and minimum 50% public expenses
in some cases, the % can reach 80 y 85% for certain Regions of a State under Cohesion Fund or in ultra-peripheral Regions or Greek peripheral isles.
– Objective 2 and 3: up to 50% of the project total cost.
– A limit for investments in income generating infrastructures :
• 50% States beneficiaries of Cohesion Fund
• 40% in all other regions under objective 1
• 25% in subvention able areas according to objective 2
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Cohesion Fund
• It is a tool to enhance the economic and social cohesion among EU Countries,helping less developed ones within the EU.
• The CF for 2000-06 is 18.000 million €.
• Beneficiaries of CF are those countries with a GNP lower than 90% of the EU average,and follow a plan for economic convergence: Ireland,Spain,Greece,Portugal.
• Condition: If Beneficiary countries of the CF have an excessive public deficit,CF are “frozen” until it is remedied.
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Cohesion Fund
• Financial projects fall into two categories:
– Environment: Projects that contribute to the overall EU objectives in Environmental Policy.
Priority is given to drinkable water supply, residual water treatment,and solid waste management.Reforestation ,erosion control and protection of the environment are also eligible for finance.
– Infrastructure of Transport Projects
• The financial support goes up to 80-85% total of Public investment cost.
• The presentation of projects to Brussels is made exclusively by the Country Government.
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Contracting and implementing of EU programmes Contracting and implementing of EU programmes Contracting and implementing of EU programmes Contracting and implementing of EU programmes
European Union D.G. European Union D.G.
AREAS OF INTERVENTION
Services, Works & Goods (tenders) or
Grants
Implementors of projects (private sector, regional
and local administrations)
Calls for proposals:
DUTIES OF TASK MANAGER (OFFICER)
•Definition and design of contents
•Technical aid to projects
•Monitoring and evaluation
•Administrative and technical control
•Facilitates the relationships with
DUTIES OF TASK MANAGER (OFFICER)
•Definition and design of contents
•Technical aid to projects
•Monitoring and evaluation
•Administrative and technical control
•Facilitates the relationships with
Contracted by the corresponding Directorate General or Implementing
Agency
Contracted by the corresponding Directorate General or Implementing
Agency
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Structural Funds :Community Initiatives
• They are special Interventions by the EU Commission ,proposing them to the Member States .These programmes can be applied throughout the EU territory and are co-financed with SF ,with the aim to solve specific problems.
• In the 2000-2006 period 4 Community Initiatives have approved.Each financed with Structural Funds:
• INTERREG III: cross-border cooperation, trans-national and interregional (ERDF).
• URBAN: regeneration of urban deteriorated areas (ERDF).
• LEADER+: rural development (EAGGF).
• EQUAL: against discrimination in labour market (FSE).
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A lump sum not exceeding 7% of the direct eligible costs of the Action may be claimed as indirect costs to cover the administrative overheads incurred by the Beneficiary for the Action.
Indirect costs are eligible provided that they do not include costs assigned to another heading of the contract budget.
Indirect costs are ineligible if the Beneficiary receives in other respects an operating grant from the European Commission.
This does not apply in the case of an operating grant.
Eligible indirect costs (overheads)
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Structural Funds :Community Initiatives
• EU investment participation is:– 35% in regions objective 1.– 15% in zones eligible of objective 2
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Structural Funds :Community Initiatives
• They have a budget of 10.440 million €, that is to say, 5,3% of total Budget of Structural Funds
• They Special EU Commission interventions for specific problems.
• They have 3 characteristics,that give them added value versus the rest of the support tools of the Structural Funds:
• Enhancement of cross-border, trans-national cooperation.European integration and convergence
• Intense participation of economic and social agents.• Promote the real cooperation among all participants.
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Community Initiatives : Interreg III
EU Community Initiative to promote integration and balanced development of the EU territories,where national borders must not be an impediment
Areas Objective 1 : up to 75% and 2 : up to 50
Beneficiaries: maritime,interior border regions 1. Interreg A: Cross-Border Cooperation2. Interreg B: Transnational Cooperation3. Interreg C: Inter-regional Cooperation
Approach: Nature,Heritage,SME´s,work integration,sharing R+D and Culture,small infrastructures,legal and administrative cooperation,Transport,Experiences exchange,Tourism,Maritime cooperation.Bottom-up
Selection criteria: unemployment,low income,social problems,environment
Budget : 4.875 + 480 PHARE million €
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EU Community Initiative to regenerate socially and economically towns and/or neibourghoods to promote a sustainable development,by using innovative strategies in medium and small towns.
Areas Objective 1 : up to 75% and 2 : up to 50%
Beneficiaries:Affected population per project :min 10.000
Approach: innovative solutions to existing problems
Selection criteria: unemployment,low income,social problems,environment
Budget : 700 million €
Community Initiatives : Urban
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EU Community Initiative to fight all forms of discrimination and inequality in labour market ,especially for asylum seekers
Areas Objective 1 : up to 75% and 2 : up to 50% Beneficiaries: geographical and sector Development Associations • Facilitate access to employment to handicapped people• Fight racism and xenophobia• Promote entrepreneurship• Reinforce social economy
Selection criteria: cross-border cooperation,training,innovation,intergated focus ,equal opportunities men and women.
Budget : 2.847 million €
Community Initiatives : Equal
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EU Community Initiative to promote integrated development in rural areas
Areas Objective 1 : up to 75% and 2 : up to 50% Beneficiaries: Rural areas 10.000-100.000 inhabitants .Local Action
Groups(all socialeconomic groups)• Coherent strategy for the territory• Interaction of different groups,network creation• Upgrade natural and cultural heritage• Help create jobs,better comunity organization,partnerships
Selection criteria: to be established by state members,and always in rural areas.
Budget : 2.020 million €
Community Initiatives : LEADER+
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State Aid Regulations: DG Internal Market/Competition
• Of course, whenever designing or launching a new scheme with SFs or other EC programmes, the authorities have to check that EC State Aid rules are met.
• This is very important once you are a Member of the EC, it is a cat-and-mouse game between national and regional bodies and EC officials as to the interpretation of the Rules. Fights and investigations are commonplace.
• Essentially simple: “De Minimis” rule applies (less than 100,000 EUR of aid in three years to a single firm or related firms, which is generally enough for most SMEs). All aid beyond that has to be justified ex-ante (better) or ex-post (when fairly sure, and unlikely the first few years after Accession). This can be done by ANMMIC, the RDAs, Counties, Associations, or whoever proposes a scheme within a grant application to benefit SMEs, cooperatives or self-employed.
• .
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State Aid Regulations
• General Summaries (SCAD) of State Aid regulations- http://europa.eu.int/scadplus/leg/en/s12002.htm
• - State Aid “De Minimis” Rule: http://europa.eu.int/scadplus/leg/en/lvb/l26065.htm
• - State Aid SME Block Exemption: http://europa.eu.int/scadplus/leg/en/lvb/l26064.htm
• - State Aid Training BE: http://europa.eu.int/scadplus/leg/en/lvb/l26063.htm
• - State Aid Employment BE: http://europa.eu.int/scadplus/leg/en/lvb/l26091.htm
• - State Aid in Agriculture (SCAD)- http://europa.eu.int/scadplus/leg/en/s12006.htm
• - State Aid in Energy (SCAD) http://europa.eu.int/scadplus/leg/en/s1400EC
• - State Aid in Transport- http://europa.eu.int/scadplus/leg/en/s12005.htm
• - State Aid in Telecoms - http://europa.eu.int/scadplus/leg/en/s21012.htm#CADREJUR
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•Any EC grant funded by Structural funds or by direct Actions must fall between a range with a minimum and maximum amounts
•A grant may not be for less than 50 % of the total eligible costs of the Action. In addition, no grant may exceed 75 % (for Obj.1, with some exceptions going to 85% or even 100%) of the total eligible costs of the action.
•The balance must be financed from the applicant's or partners' own resources, or from sources other than the European Community budget. WB and bilateral funds are accepted, if properly negotiated.
•Example of call for proposal for a grant from DG Enterprise: http://europa.eu.int/comm/enterprise/funding/grants/themes_2005/calls_prop_2005.htm
GRANTS from SF: Size of EC grants
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• There are sets of eligibility criteria, relating to organisations which may request a grant, actions for which a grant may be awarded, types of cost which may be taken into account in setting the amount of the grant.
1. Eligibility of applicants: who may apply
2. Partnerships and eligibility of partners
3. Eligible actions: actions for which an application may be made
4. Eligibility of costs: costs which may be taken into consideration for the grant
Eligibility criteria
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1. Eligibility of applicants: who may apply- generally:
Non-profit-making legal persons
Organisations with their headquarters in the European Union
Be directly responsible for the preparation and management of the action, not acting as an intermediary
Eligibility criteria:
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Partnerships and eligibility of partners
Applicants may act individually or in consortium with partner organisations; or, if partnership is obligatory under the programme, applicants must act in consortium with partner organisations.
Other organisations may be involved in the action. Such associates play a real role in the action but may not receive funding from the grant. Associates do not have to meet the eligibility criteria, however, they must fulfil the general eligibility criteria. Subcontractors are neither partners nor associates, and are subject to differents rules. The applicant will act as the lead organisation and, if selected, as the contracting party (the "Beneficiary"), private bodies will usually be subcontractors.
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Eligible actions: actions for which an application may be
made
•DurationThe duration of an action may not exceed a number of months •Sectors or themesDescription of the specific sectors or themes to which the actions must relate•Location•Actions must take place in one or more of the EU / Pre-accession countries: • Type of actionsDescription of the type of actions which may be financed under the programme. The following types of action are ineligible: individual sponsorships for participation in workshops, seminars, conferences, congresses, individual scholarships for studies or training courses;
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Cost Eligibility
Eligible direct cost
Ineligible costs
Eligible indirect costs (overheads)
Contributions in Kind
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To be eligible under the call for proposals, costs must:
be necessary for carrying out the action,
have actually been incurred by the beneficiaries or their partners during the implementing period for the action;
be recorded in the Beneficiary's or the Beneficiary's partners' accounts or tax documents, be identifiable and verifiable, and be backed by originals of supporting documents.
Eligible direct costs
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Normally eligible direct costs include:
the cost of staff assigned to the action, corresponding to actual salaries plus social security charges and other remuneration-related costs;
travel and subsistence costs for staff taking part in the action,;
the cost of purchasing equipment (new or used) and services, provided they correspond to market rates;
the cost of consumables and supplies;
subcontracting expenditure;
costs arising directly from the requirements of the contract (dissemination of information, evaluation specific to the action, audit, translation, printing, insurance…) including financial service costs (in particular the cost of transfers and financial guarantees).
Eligible direct costs
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The following costs are not eligible:
debts and provisions for losses or debts; interest owed; items already financed in another framework; purchases of land or buildings, except where necessary
for the direct implementation of the action, in which case ownership must be transferred to the final beneficiaries at the end of the action;
currency exchange losses; taxes, including VAT, unless the Beneficiary (or the
Beneficiary’s partners) cannot reclaim them and the applicable regulations authorise coverage of taxes.
Ineligible costs
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Any contributions in kind made by the Beneficiary or the Beneficiary’s partners, which must be listed separately (Budget), do not represent actual expenditure and are not eligible costs. They may not be treated as co-financing by the Beneficiary.
However, the Beneficiary must undertake to make such contributions as stated on the application form if the grant is awarded.
Contributions in kind
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Application forms and supporting documents
Applications must be submitted on the application form annexed to these Guidelines. The application form is also available on the Europa web site.
Applicants should keep strictly to the format of the application and fill in the pages in order.
Complete the application form carefully and as clearly as possible so that it can be assessed properly. Be precise and provide enough detail to ensure the application is clear, particularly as to how the aims of the action will be achieved, the benefits that will flow from it and the way in which it is relevant to the programme's objectives.
Hand-written applications will not be accepted.
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Applications must be accompanied by the following supporting documents:•The statutes or articles of association of the applicant organisation and where appropriate, of each partner organisation;The applicant’s most recent annual report and accounts (the profit and loss account and the balance sheet for the previous financial year);
•Where the grant requested exceeds EUR 300 000 , an external audit report produced by an approved auditor, certifying the accounts for the last financial year available and stating to what extent the applicant has stable and sufficient sources of finance to maintain its activity.
•Other supporting documents required ( see format)
Supporting documents
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Applications will be examined and evaluated by the contracting authority with the possible assistance of external assessors. All actions submitted by applicants will be assessed according to the following criteria:
1. Administrative compliance
Verification that the application is complete in accordance with the checklist.
2. Eligibility of the applicants, partners and actions
Verification that the applicant, the partners (and the associates whereapplicable), and the action are eligible according to the criteria set out
in the notice
Evaluation and selection of applications
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• Selection criteria are intended to help evaluate the applicants' financial and operational capacity to ensure that they:
have stable and sufficient sources of finance to maintain their activity throughout the period during which the action is being carried out and, where appropriate, to participate in its funding;
have the professional competencies and qualifications required to successfully complete the proposed action. This also applies to any partners of the applicant.
• The award criteria allow the quality of the proposals submitted to be evaluated in relation to the objectives and priorities set, and grants to be awarded to actions which Maximise the overall effectiveness of the call for proposals.•They cover such aspects as the relevance of the action, its consistency with the objectives of the call for proposals, quality, expected impact, sustainability and cost effectiveness.
Evaluation and selection of applications
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Section Maximum
Score
Application
Form
1. Financial and operational capacity 20
1.1 Do the applicant and partners have sufficient experience of project management?
5 II.4.1 and III.1
1.2 Do the applicant and partners have sufficient technical expertise?(notably knowledge of the issues to be addressed.)
5 II.4.1 and III.1
1.3 Do the applicant and partners have sufficient management capacity? (including staff, equipment and ability to handle the budget for the action)?
5 II.4.2 and III.1
Example of scoring matrix
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Section Maximum
Score
Application
Form
2. Relevance 25
2.1 How relevant is the proposal to the objectives and one or more of the priorities of the call for proposals?
5 I.1.6(a)(b)
2.2 How relevant to the particular needs and constraints of the target country/countries or region(s) is the proposal?
5 I.1.6(c)
2.3 How clearly defined and strategically chosen are those involved (intermediaries, final beneficiaries, target groups)?
5 I.1.6(e)
2.4 Have the needs of the target groups proposed and the final beneficiaries been clearly defined and does the proposal address them appropriately?
5 I.1.6 (c)(f)
2.5 Does the proposal contain specific elements of added value?
5 Passim
Example of scoring matrix
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Section Maximum
Score
Application
Form
3. Methodology 30
3.1 Are the activities proposed appropriate, practical, and consistent with the objectives and expected results?
5 I.1.7
3.2 How coherent is the overall design of the action? 5 I.1.8
3.3 Is the partners' level of involvement and participation in the action satisfactory?
5 I.1.8(e)
3.4 Is the target groups' and final beneficiaries' level of involvement and participation in the action satisfactory?
5 I.1.8(e)
3.5 Is the action plan clear and feasible 5 I.1.9
3.6 Does the proposal contain objectively verifiable indicators for the outcome of the action?
5 Logframe
Example of scoring matrix
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Section Maximum
Score
Application
Form
Sustainability 15
4.1 Is the action likely to have a tangible impact on its target groups?
5 I.2.1
4.2 Is the proposal likely to have multiplier effects?
5 I.2.2 & I.2.3
3 Are the expected results of the proposed action sustainable:
- financially (how will the activities be financed after the EC funding ends?)
- institutionally (will structures allowing the activities to continue be in place at the end of the action? Will there be local “ownership” of the results of the action?)
5 I.2.4
Example of scoring matrix
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Section Maximum
Score
Application
Form
Budget and cost-effectiveness 10
5.1 is the ratio between the estimated costs and the expected results satisfactory?
5 I.3
5.2 Is the proposed expenditure necessary for the implementation of the action?
5 I.3
Note: Maximum Total score 100
Example of scoring matrix
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•The Beneficiary usually receives some pre-financing. If the overall duration of the action does not exceed 12 months or if the grant does not exceed EURO 100 000, the pre-financing will be 80% of the grant.
•If the overall duration of the action exceeds 12 months and if the grant exceeds EUR 100 000, the first pre-financing instalment will be 80% of the forecast budget for the first 12 months of the action). In that case, subsequent pre-financing payments may be made upon submission by the Beneficiary, and approval by the contracting authority, of an interim report and a work plan and budget for the following period.
•The final balance will be paid upon submission by the Beneficiary and approval by the contracting authority of the final report Payments will be made to an Action-specific bank account or sub-account which identifies the funds paid by the Contracting Authority
•The Beneficiary must keep accurate and regular records and dedicated, transparent accounts of the implementation of the action It must keep these records for seven years after payment of the balance.
Payments
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Audit
An external audit of the accounts of the Actions implemented must be attached to:
any request for a further pre-financing payment if the sum total of the earlier and the new pre-financing payments exceeds EUR 750 000;
any request for payment of the balance in the case of a grant of more than EUR 100 000;
any payment request of over EUR 75 000 for the financial year,
in the case of an operating grant;
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Example of Action Work Plan
Year 1
TIME Semester 1 Semester 2 Implementing body
Activity 1 2 3 4 5 6 7 8 9 10 11 12 Example
Example Local partner 1
Execution Activity 1(title)
Local partner 2
Preparation Activity 3 (title)
Local partner 1
Etc.
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Checklist
the dossier is complete and complies with the application form's requirements one original and […] copies of all documents are annexed
an electronic copy of the file is enclosed where required
the dossier is typed and is in [language]
the declaration by the applicant (per diem) is signed and attached
if there are partners, the applicant has completed and signed a partnership statement, also included
each partner has completed and signed a partnership statement and the statements are included
the budget and the expected sources of funding are presented in the format of the application form, completed and drawn up in <Euro>
in the budget <the Contracting Authority>'s contribution is identified and is a maximum of […]% of the total eligible costs of the action
in the budget, overheads do not exceed 7 % of direct eligible costs
the logical framework matrix for the Action is included if requested
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Annex B. Budget for the Action1
Expenses Unit # of units Unit # of units
1. Human Resources
1.1 Salaries (gross amounts, local staff)4
1.1.1 Technical Per month 0 Per month 0 1.1.2 Administrative/ support staff Per month 0 Per month 01.2 Salaries (gross amounts, expat/int. staff) Per month 0 Per month 0
1.3 Per diems for missions/travel5
1.3.1 Abroad (staff assigned to the Action) Per diem 0 Per diem 0 1.3.2 Local (staff assigned to the Action) Per diem 0 Per diem 0 1.3.3 Seminar/conference participants Per diem 0 Per diem 0Subtotal Human Resources 0 0
2. Travel6
2.1. International travel Per flight 0 Per flight 02.2 Local transportation Per month 0 Per month 0Subtotal Travel 0 0
3. Equipment and supplies7
3.1 Purchase or rent of vehicles Per vehicle 0 Per vehicle 03.2 Furniture, computer equipment 0 03.3 Spare parts/equipment for machines, tools 0 03.4 Other (please specify) 0 0Subtotal Equipment and supplies 0 0
4. Local office/Action costs8
4.1 Vehicle costs Per month 0 Per month 04.2 Office rent Per month 0 Per month 04.3 Consumables - office supplies Per month 0 Per month 04.4 Other services (tel/fax, electricity/heating, maintenance) Per month 0 Per month 0Subtotal Local office/Action costs 0 0
5. Other costs, services9
5.1 Publications10 0 0
5.2 Studies, research10 0 05.3 Auditing costs 0 05.4 Evaluation costs 0 05.5 Translation, interpreters 0 05.6 Financial services (bank guarantee costs etc.) 0 0
5.7 Costs of conferences/seminars10 0 05.8 Visibility actionsSubtotal Other costs, services 0 0
Costs (in
EUR)3Unit rate (in
EUR)
All Years Year 12
Costs (in EUR)
Unit rate (in EUR)
Example of Action Budget
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Complete Research
LOGICAL FRAMEWORKIntervention Objectively verifiable Sources and means of Assumptions
logic indicators of achievement verificationOverall What are the overall broader What are the key indicators relatedWhat are the sources ofobjectives objectives to which the action to the overall objectives? information for these indicators?
will contribute?
Specific What specific objective is the Which indicators clearly show What are the sources of Which factors and conditions outsideobjective action intended to achieve to that the objective of the information that exist or can be the Beneficiary's responsibility
contribute to the overall objectives? action has been achieved? collected? What are the methods are necessary to achieve thatrequired to get this information? objective? (external conditions)
Which risks should be takeninto consideration?
Expected The results are the outputs envisaged to What are the indicators to measureWhat are the sources of What external conditions must be metresults achieve the specific objective. whether and to what extent the information for these indicators? to obtain the expected results
What are the expected results? action achieves the expected on schedule?(enumerate them) results?
Activities What are the key activities to be carried outMeans: What are the sources of What pre-conditions are required beforeand in what sequence in order to produce What are the means required to information about action the action starts?the expected results? implement these activities, e. g. progress? What conditions outside the Beneficiary's(group the activities by result) personnel, equipment, training, Costs direct control have to be met
studies, supplies, operational What are the action costs? for the implementation of the plannedfacilities, etc. How are they classified? activities?
(breakdown in the Budget for the Action)
Example of Logframe Matrix- Action
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Examples of some regional Programmes
funded by Structural Funds
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Origin and purpose of the SAVE Energy Agencies (Intelligent Energy for Europe):
• The project of the creation of the regional, provincial and/or local SAVE Energy. These Agencies have its legal framework within the program of Intelligent Energy for Europe (IEE). IEE, on the other hand, has various sub programs, including the SAVE program. This program’s objective is to encourage and strengthen the energy efficiency and energy savings measures.
• At the same time, it also pays special attention to the technological advances in the field of energy efficiency and the renewable energy sources. The EU also uses the agencies to indirectly influence the environmental impact and the security of the energy supply, two elements high up on the scale of the EU energy priorities.
SAVE Programme.Creation and establishment of SAVE Energy Agencies
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The SAVE programme objectives:
• Stimulate the energy efficiency measures in all sectors.• Promote and encourage the investment in the energy conservation on behalf of
the individual and public consumers as well as large industrial consumers• Reduce the overall energy consumption influencing the demand size of the
consumption– This the basis which the SAVE program uses when it decides to
finance creation of any Energy Agency. – Its goal is to improve upon energy management at the regional,
provincial and even local level by encouraging a better cohesion and coordination between the different European regions on the questions of energy.
– Its mission is to stimulate a top-down approach towards the energy management. It does so by developing actions of a local or regional character, using the available energy resources and the creation of the conditions for the adequate energy supply at the local level.
SAVE Programme.Creation and establishment of SAVE Energy Agencies
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SAVE Programme.Creation and establishment of SAVE Energy Agencies
Functions of the SAVE Energy Agencies: •Provide information, assessment, training and education dealing with energy management and the associated measures and techniques. •Supply technical advising with regards to the preparation of projects dealing with the energy management•Get together the citizens and organizations with identical and/or similar Problems•Perform energy audits for the local energy producersContribute to the launch of local energy related projects (wind turbine energy parks, mini electrical plants, etc).•Stimulate the economic activities related to energy.•Act as the intermediates between the regional and/or local authorities on the energy market•Develop the relevant EU energy contacts in order to stimulate the exchange of information and the transfer of technology.
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SAVE Programme.Creation and establishment of the SAVE Energy Agency
Target beneficiaries of the SAVE Agencies:
•Residential housing. •Public and private services sector.•Small and medium sized enterprises.•Local or regional development and planning for energy saving.•Energy efficiency of the Transport sector. •Infrastructure of the local and regional administration towards energy efficiency. •Energy supply, including the development of the regional energy•Systems using renewable resources at the local level.
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•The EU Commission has financed the set-up of the energy saving agencies which, among other objectives, try to maximise the efficiency of the energy usage. For this purpose, the EU Commission fixed a financial contribution of 200.000 Euro for a period of three years. This amount was set independently of the total budget of the project which could be, and usually was, several times higher.
•The financing was meant to support the establishment of the agency and to finance its personnel cost, elements absolutely essential for its launch, and to help co-finance the programs that each of the agencies has set to execute through its correspondent work program. •Of course, the EU Commission finances only those agencies whose objectives correspond to the stated overall and specific objectives of the EU Commission of energy efficiency.
SAVE Programme.Creation and establishment of the SAVE Energy Agency
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Technology programme.Laboratory for Shoe cluster
Example: Aragon region, Laboratory for Quality Shoes in Aranda
ERDF-funded programme, yet helped design and within the policies of the Directorate-General for Enterprise (technology centres), aims to provide assistance and encouragement for small and medium-sized companies within the framework of a policy designed to strengthen the fabric of Spanish SMEs.
Objective: To improve the competitiveness and quality of SME Shoes Industries via the promotion of the implementation of innovative systems with a Laboratory (small technology centre) for quality, training, etc.
Centre should deploy ICT and innovative management and production and design techniques. The Centre defined four support programmes : design; quality systems; inter-company co-operation networks; and process innovation - centred mainly on aspects of SME management and organisation.
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Technology programme.Laboratory for Shoe Cluster
Aragon region- Laboratory for Quality Shoes in Aranda
Beneficiaries: SMEs in Aragon of the leather and shoe sector, through their local shoe manufacturers association. Eligible expenses: External consulting costs, related services, technical equipment for laboratory and computers. Excluded were the investment in the buildings, furniture and operating costs. Procedures:With the laboratory the Aragon shoes industries have a tool for analysing the raw material and to improve the manufacture of shoes.And with the laboratory the SME Aragon Shoes getting a similar quality of final product in the differents industries.
Programme costs, total funds of EU (ERDF) 50%: 240.500 EUR . Total costs of centre EUR 481.000 EUR for set-up. The centre later applied for R&D grants, regional grants, etc., for operational phase.
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The following limits apply to EC contracts:
Up to 50.000 EUR contracts, Commission Framework
Contract (short list of 3) or direct award
Up to 200.000 EUR contracts, AMS Framework Contracts or
restricted bidding (short list of 3 within Lot of Framework)
Above 200.000 EUR contracts, Awarded after international
tender in EuropeAid (shortlist of 5 to 8)
Classification of the tendering processes for technical assistance (services)
PART II
EC PROJECT CYCLE MANAGEMT
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OVERVIEW OF EC PROJECT CYCLE MANAGEMENT
What is a project?
ISO/PMI: “A series of activities aimed at achieving one or more specific objectives within a defined time
frame and with a defined budget”
EC: “A project is an instrument which is used to contribute to the achievement of a larger goal
(e.g. a programme), which will in its turn supports the implementation of a broader policy”
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What are project monitoring and evaluation?
Monitoring (EC): « To assess whether the project is reaching and/or is likely to reach
its objectives and results in a timely and efficient way »
Evaluation (EC): « To assess whether the project has had impact intended and
reached its purpose and results in a timely and efficient way »
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The EC External Aid Project Cycle
Programming
Identification
FormulationImplementation
Evaluation& Audit
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The EC Project Cycle
EC: “The way in which projects are planned and carried out; it follows a sequence beginning with an agreed
strategy, which leads to an idea for a specific action, which then is formulated,
implemented, and evaluated with a view to improve the strategy and define further
action”
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Project Cycle Management
« The management activities and the decision-making procedures used during the life-cycle of a project, including key
tasks, roles and responsibilities, key documents and decision options »
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PCM is used to ensure that:
projects are supporting predefined overarching policy objectives; projects are relevant to an agreed strategy and to the real problems of the target groups/beneficiaries; projects are feasible meaning that objectives can be achieved given the constraints of the operating environment; benefits are likely to be sustainable.
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The essential PCM principles are:
use of Logical Framework Approach (LFA) to formulate the project and analyse the problems; production of good quality key documents in each phase to ensure structured and well-informed decision making; consulting and involving key stakeholders as much as possible.
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Key documents in the PCM:
Programming
Identification
FormulationImplementation
Evaluation
Programming
Identification
FormulationImplementation
Evaluation
Decisions to take Documents to produce
CountryStrategy Paper
Priority areas,Sectors,timetable
Which optionsto studyfurther
Pre feasibilitystudy
ProjectIdentification
Sheet
Feasibilitystudy
FinancialProposal
Decisionon funding
FinancingAgreement
Progress& Monitoring
Report
Decision whether tocontinue as plannedor reorient the project
EvaluationReport
Decisionon how to use results
for planning
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What is Programming?
For EC development assistance:establishment of general guidelines and principles for EU co-operation with a country
For other types of EC programming:establishment of main development priorities
Project Identification, Formulation and Analysis
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What is Identification:
To add more details to the output of the programming phase by:
identifying project ideas consistent with the set priorities;assessing their relevance and the feasibility;preparing a detailed Financing Proposal (MEDA and Tacis) or Project Fiche (ALA or ACP);preparing a financing decision for a Programme or projects, or call for further studies/analyses
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Identification and Formulation Tools: • The core tools of the Identification and Formulation
phases are:
1. Quality Assessment Criteria
2. Logical Framework Approach (LFA)
3. Institutional Capacity Assessment
4. Promoting Participatory approaches
5. Preparation of Terms of Reference
6. Identification, Action Programme and Project Fiche
7. Economic and Financial Analysis
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Identification: Assessment Criteria and Standards
A. RELEVANT1. Consistent with EC development and cooperation policies2. Consistent with partner government policies and sector programmes3. Key stakeholders identified, institutional issues and local ownership 4. Problems appropiately analysed5. Lessons learned from experience and linkages to other projects and programmes
incorporated
B. FEASIBLE6. Preliminary objectives are clear and logical, address needs7. Preliminary resource and costs clear and economic-financial analysis carried out8. Preliminary coordination and financing arrangements clear and support
institutional strengthening9. (Not applicable to formulation)10. Assumptions and risks identified and appear reasonable11. Likely to be environmentally, technically and socially sustainable
C. WELL-MANAGED• 16. Good practice principles of PCM applied by EC task managers
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Identification: Outputs
• Information produced at end of Identification
phase: 1. Policy and programme context (Partner and EC)
2. Stakeholder analysis
3. Problem analysis
4. Lessons learned and review of other planned initiatives
5. Preliminary project description
6. Indicative resource and costs implications
7. Indicative coordination and management (including controls)
8. Preliminary assessment of economic/ financial, environmental, technical and social sustainability
9. Workplan for Formulation stage • With the following outputs:
– - Terms of reference for EC-funded Feasibility studies (Framework contracts)– - Identification Fiche, with Draft Terms of Reference for feasibility or design – - A Financing Proposal for a programme or a package of projects (Action programme
with Project Fiches)
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Formulation Phase: objectives
confirm the relevance and feasibility of the project ideas as presented in the initial identification fiche;prepare a detailed project design;prepare a financing proposal.
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Information elements produced at the end of the project
Formulation/design phase:
Situation Analysis/Assessment;Project Description;Management Arrangements; Feasibility and Sustainability.
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Situation Analysis/Key assessment:
Policy and programme contentStakeholder analysis & institutional capacity assessmentProblem analysisLessons learnedStrategy selection
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Project Description:
Overall objective and purposeTarget group, location and durationResults and indicative activitiesResources and costs
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Management Arrangements:
Coordination and management structuresFinancial management/financing arrangementsMonitoring, evaluation and audit tools
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Feasibility and Sustainability:
Economic and financialEnvironmentalTechnicalSocial and governanceRisk management
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Implementation:
deliver the results, achieve the purposed and
contribute to the overall objective of the project;manage the resources efficiently;monitor and report on progress
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Evaluation:
Evaluation is an assessment, as systematic and
objective as possible, of an on-going or
completed project, programme or policy, its
design, implementation and results. The aim is
to determine the relevance and fulfilment of
objectives, developmental efficiency,
effectiveness, impact and sustainability
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Evaluation
An evaluation can be done during implementation
(mid-term), at its end (final evaluation) or
afterwards (ex-post evaluation), either to help
steer the project or to draw lessons for future
projects and programming
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Principles underpinning Evaluation:
impartiality and independence (implementation from programming);credibility of the evaluation (skilled experts, transparency, dissemination);participation of the stakeholders to ensure different perspective;usefulness (through timely presentation of relevant, concise and clear information to key decision makers).
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The main tools supporting Project Cycle Management:
The Project Fiche - or Terms of reference;The Project Logframe Matrix- especially to help assessing what has been achieved against plan;Monitoring reports;Evaluation reports- intermediate and final.
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Monitoring and evaluation: scope and differences
Input, activities, results
WHEN?
WHY?
WHO?
Link to LF
Criteria
on-going
internal management responsibility
check progress, take remedial action, etc
relevance, efficiency, and effectiveness
usually incorporates external inputs
periodic, mid term, completion, ex-post, on-
going
Lessons learnt
results, purpose, overall objective, relevance
impact and sustainability
EVALUATION MONITORING
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What do we mean by RELEVANCE?
the appropriateness of project objectives to the problems that it was supposed to address, and to the physical and policy environment within which it operated, and including an assessment of the quality of project preparation and design – i.e. the logic and completeness of the project planning process, and the internal logic and coherence of the project design
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What do we mean by EFFICIENCY?
The fact that the Results have been achieved at reasonable cost, i.e. how well inputs/means have been converted into Results, in terms of quality, quantity and time, and the quality of the Results achieved. This generally requires comparing alternative approaches to achieving the same outputs, to see whether the most efficient process has been adopted
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What do we mean by EFFECTIVENESS?
An assessment of the contribution made by Results to achievement of the Project Purpose, and how Assumptions have affected project achievements
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What do we mean by IMPACT?
The effect of the project on its wider environment, and its contribution to the wider sectoral objectives summarised in the project’s Overall Objectives, and on the achievement of the overarching policy objectives of the EC
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What do we mean by SUSTAINABILITY?
An assessment of the likelihood of benefits produced by the project to continue to flow after external funding has ended, and with particular reference to factors of ownership by beneficiaries, policy support, economic and financial factors, socio-cultural aspects, gender equality, appropriate technology, environmental aspects, and institutional and management capacity
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Link with Logframe Matrix
Have and will products and benefits be maintained?
Which benefits on society and sector?
How well did the results contribute to the achievement of the project purpose?
How were the inputs and activities converted into results?
Quality of planning and adaptation, including relevance of problems to correct beneficiaries, OVIs, means, cost, assumptions, risks
relevance
efficiency
effectiveness
impact
sustainability
Means +Pre-conditions
Activities +Assumptions
Results + Assumptions
Project purpose + Assumptions
Overall objectives
change
utilisation
action
allocation
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Logical Framework Approach
It is an analytical process and a set of tools developed to support project planning and managementIt allows information to be analysed and organised in a structures way so that important questions can be asked, weaknesses identified and decision makers can take informed decisions
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Logical Framework Approach (LFA)Versus
Logical Framework Matrix (LFM)
LFALFA which is an analytical process involving stakeholders analysis, problem analysis, objective setting and strategy selection
LFM LFM is the product of the analysis and consists of a matrix of four columns and four (or more) rows summarising the key elements of a project
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Logical Framework MatrixProject
Description Indicators Sources of verification
Assumptions
Overall objective: the project’s contribution to policy or programme objectives (impact)
Purpose (often called specific objectives) – direct benefits to the target groups
Results (often called outputs) – tangible products or services delivered by the project
Activities (sometimes referred to Inputs) – which have to be undertaken to deliver the desired results
How the Overall Objective has to be measured including Quantity, Quality, and Time?
How the Purpose has to be measured including Quantity, Quality, and Time?
How the Results have to be measured including Quantity, Quality, and Time?
How will the information be collected, when and by whom?
Same as above
Same as above
What are general Assumptions? or major risks?
If the purpose is achieved, what assumptions must hold true to achieve the Overall Objective?
If results are achieved, what assumptions must hold true to achieve the Purpose?
If activities are completed, what assumptions must hold true to deliver the Results?
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LFA and Project Cycle
Identification: it is used to help analyse the existing situation, investigate the relevance of the project ideas proposed and identify potential objectives and strategies;Formulation: it is used to support the preparation of a good project plan with clear objectives, measurable results, risk management strategy and defined levels of management responsibility;Implementation: it is used to support daily work, contracting and monitoring;Evaluation: it is used to assess the project performance against what was planned.
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LFA has two separate stages:
Analysis Stage: Stakeholders Analysis, Problem Analysis, Analysis of Objectives, Analysis of Strategies
Planning stage: Logframe matrix
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4. Project Identification and Analysis
Stakeholders Analysis: identifies and characterises the main stakeholders and assesses their capacities;Problem Analysis: identifies the main problems, constraints and opportunities including the cause and effect relationship;Analysis of Objectives: develops solutions from the identified problems by picturing the image of an improved situation in the future;Analysis of Strategies: identifies different strategies to achieve the solutions selecting the most appropriate one.
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Stakeholders Analysis
Who is a Stakeholder?Any individual or group of individuals who have a significant interest in the success or failure of a project;Often a stakeholder can also coincide with a beneficiary, a facilitator or an adversary;Different groups might have different concerns, interests and capacities and therefore it is very important that the first step is the identification of the different groups
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Stakeholders Analysis
There are a number of steps to undertake:identify the problem to address;identify all those who might have an interest in the potential project;investigate their roles, interests, power and capacity to participate;interpret the findings and incorporate them in the project design in order to make sure that (1) resources are correctly targeted; (2) stakeholders ownership and participation is promoted; (3) existing or potential conflicts of interests are addressed.
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Stakeholders Analysis
Tools to facilitate the stakeholders analysis
Stakeholder analysis matrixSWOT analysis
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Stakeholders Analysis Matrix
Stakeholders and basic characteristics
Interests and how affected by the problems
Capacity and motivation to bring about change
Possible action to address stakeholders interests
Stakeholder 1
Stakeholder 2
Stakeholder ….
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SWOT Analysis
WEAKNESSES STRENGTHS
OPPORTUNITIES THREATS
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Problem AnalysisSTEP 1: brainstorm on problems considered to be a priority by the stakeholdersSTEP 2: select individual starter problem STEP 3: identify related problems to the starter problem STEP 4: begin to establish a cause-effect relationshipSTEP 5: all other problems are sorted in the same way (cause-effect)STEP 6: problems are connected with cause-effect arrows showing the links STEP 7: revise the diagram to find out if some problems have not been identified STEP 8: the diagram is revised accordingly and distributed
A different, yet similar, method for Problem analysis is the “Fishbone diagramme”, or Ishikawa Root-cause analysis.
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Ex. STEP 1: Brainstorm on problems considered to be a priority by the stakeholders
Lack of int. partnerships SMEs do not access int. markets
Lack of int. exposureLack of export promotion strategy
No access to advisory services
Lack of specific skills
Lack of funds
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Ex. STEP 6: problems are connected with cause-effect arrows showing the links
SMEs do not access int. markets
Lack of int. partnerships
Lack of int. exposure
Lack of export promotion strategy
Lack of specific skills
Lack of funds No access to advisory services
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Problem tree represention of Problem analysis
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Fishbone Analysis (Root –Cause analysis or Ishikawa)
•
– No hay acceso a tecnologías modernas
– Bajo nivel tecnológico
– Baja competitividad 4 sectores
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Analysis of objectives
1. describe the situation once the problems have
been removed;
2. verify the hierarchy of objectives;
3. illustrate the means-end relationship in a
diagram.
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Analysis of objectives
Starting from the problem tree, the negative situations are converted into solutions expressed in positive achievements.
The positive achievement are actually objectives which are presented into a diagram showing the hierarchy of means/end
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Analysis of objectives
SMEs are able to better access int. markets
SMEs build Int. partnerships
SMEs increase int. exposure
SME develop Export Prom. Strategies
SMEs acquire specific skills
SMEs benefit of ad hoc funds
SMEs access advisory services
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Analysis of strategies/options
We have to concentrate on the potential merits or difficulties associated with addressing problems in different ways by considering a number of issues:
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Analysis of strategies/options
1. if all the problems have to be faced or only a selection of them;
2. positive opportunities on which we can build on (from SWOT);
3. combination of interventions which is likely to better achieve the results and ensure sustainability;
4. which option is best promoting local ownership;5. which is the most cost effective option;6. which option best impact on the needs of the
poor/most vulnerable groups
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Analysis of strategies/options
There are a number of general criteria for strategy selection and namely:
1.contribution to key policy objectives (poverty reduction, reduction of unemployment etc);
2.complimentary with other ongoing projects;3.environmental impact;4.etc…..
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4. Project Planning
Most of the work done in the analysis stage is aimed to facilitate the planning stage and more specifically the finalisation of the Logical Framework Matrix (LFM).
The LFM is a summary of the project design.It is best between one and three-four pages in length. The first page ideally includes the Overall Objective, Purpose
and Results, while Activities can be described in the second, third or successive pages.
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Logical Framework MatrixProject
Description Indicators Sources of verification
Assumptions
Overall objective: the project’s contribution to policy or programme objectives (impact)
Purpose (often called specific objectives) – direct benefits to the target groups
Results (often called outputs) – tangible products or services delivered by the project
Activities – tasks that have to be undertaken in order to deliver the desired results
How the Overall Objective has to be measured including Quantity, Quality, and Time?
How the Purpose has to be measured including Quantity, Quality, and Time?
How the Results have to be measured including Quantity, Quality, and Time?
How will the information be collected, when and by whom?
Same as above
Same as above
If the purpose is achieved, what assumptions must hold true to achieve the Overall Objective?
If results are achieved, what assumptions must hold true to achieve the Purpose?
If activities are completed, what assumptions must hold true to deliver the Results?
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Sequence for completing LFMProject
Description Indicators Sources of verification
Assumptions
Overall objective
(1)
Purpose
(2)
Results
Activities
Purpose
(2)
Result
(3)
Activities
(4)
(8)
(10)
(12)
(9)
(11)
(13) (6)
(5)
(7)
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First column: intervention logic
The first column of the Logframe matrix summarise the means-end logicmeans-end logic of the project also known as the intervention
logic
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The objective hierarchy is read from the bottom up using an “IF, THEN” approach as follows:
IF adequate inputs/resources are provided, THEN activities will be undertaken
IF activities are undertaken, THEN results can be produced
IF results are produced, THEN the purpose can be achieved
IF the purpose is achieved, THEN this should contribute to the overall objective
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The objective hierarchy is read from the bottom up using an “IF, THEN” approach as follows:
IF adequate inputs/resources are provided, THEN activities will be undertaken
IF activities are undertaken, THEN results can be produced
IF results are produced, THEN the purpose can be achieved
IF the purpose is achieved, THEN this should contribute to the overall objective
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The LFM
The LFM helps to indicate the degree of control managers have over the different levels of the project’s objectivesManagers should have a significant control over inputs, activities and the delivery of resultsManagers can generally only exert influence over the achievement of the project purpose though the delivery of resultsManagers have no direct influence over the contribution the project makes to the overall objective.
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If we apply the necessary and sufficient conditions to the first column of the Logframe matrix:
Achieving the purpose is necessary but not sufficient to attain the overall objective
Producing the project results is necessary but may be not sufficient to achieve the purpose
Carrying our project activities is necessary and sufficient to deliver the results
Inputs/resources should be necessary and sufficient to implement the planned activities
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Wording
Project
Description Overall
objective
Purpose
Results
Activities
Statement
To contribute to…..Example: to contribute to the decrease of unemployment
Benefits to the target groups being improved etc…Example: improved legal environment
Tangible result delivered/produced/conducted…Example: improved training facilities available for
Present tense starting with an active verbExample: prepare and deliver public information….
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Fourth column: assumptions
Assumptions are external factors having the potential to influence the success of a project but
are outside the direct control of the project management. They belong to the so called
vertical logic in the Logframe
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Assumptions
once activities have been carried out IF the assumptions on the relevant level hold true THEN
results will be achieved;once results are achieved IF the assumptions of this
upper level hold true THEN the project purpose will be achieve;
once the purpose has been achieved IF the assumptions at this level hold true, THEN the project
will contribute to the achievement of the overall objective
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Second and third columns: OVIs and sources of verification
Objective Verifiable Indicators (OVIs) and Sources of Verification are very important for both monitoring and evaluation and they respond to the so called horizontal logic
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Objectively Verifiable Indicators
OVIs are indicators which help to measure and report on the achievement of objectivesOVIs describe the project’s objectives in operationally measurable terms (QQT= Quantity, Quality and Time)Focussing on OVIs during the planning phase helps to check on the feasibility of the project and constitute the basis for monitoring and evaluation
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A good OVI has to be SMART:
S specific to the objective it is supposed to measureM measurable (either quantitatively or qualitatively)A available at an acceptable cost
R relevant to the information needs of managers
T time bound
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Indicators
should be independent from each other namely related only one objective
are to be defined during the formulation stage and are specified in the implementation
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Sources of verification
how the information is to be collected
who should collect it
when/how regularly to collect it
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Activity schedule
is a format for analysing and graphically presenting project activitieshelps to identify their logical sequence, expected duration and any link existing between themprovides the basis for allocating management responsibility
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STEP
STEP 1
STEP 2
STEP 3
STEP 4
STEP 2
STEP 3
STEP 4
STEP 5
STEP 6
STEP 7
STEP 8
DESCRIPTIONList Main activities:Starting from the Logframe we make a list of all the activities to be performed
Break activities into manageable tasks:The purpose is to make them simple to be organised and managed. Each task can be assigned to an individual. The breaking down process must stop as soon as the planner has sufficient detail
Clarify sequence (which activity comes first) and dependencies (is an activity dependent on the start-up/completion of any other activity?)
Estimate Start-up, duration and completion of activities:The planner makes a realistic estimate of the duration of each task in order to establish start-up and completion date.
Summarise Scheduling of main activities
Define Milestones:Identify key events that provide a measure of progress and a target for the project team to aim at.
Define expertise:Once the tasks are specified we can identify the type of expertise required
Allocate tasks among team:This is not only a definition of who does what. It involves the responsibility for the achievement of the milestones.
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ID Nome attività
26 C1. Institution Building for RDP
27 Establish a Strategy Committee in each region
28 Identify and meet with members of the SC
29 Develop modalities & mechanism for the operation of the SC
30 Submit SC membership to EC Delegation and Project Partners
31 Establish Working Groups in each region
32 Define thematic Working Groups
33 Identify members of the Working Groups
34 Develop mechanism and modalities for the operation of the WGs
35 Submit WG membership to EC Delegation and Project Beneficiaries
36 Training on RDP for both SC and WG members
37 Design and agree training programme on RDP
38 Select participants
39 Organise & deliver training workshops in RDP
40 Evaluate the performance & supplementary trainings as needed
41 Assist regional officials with drafting RD strategies
42 Assist to carry out Regional Socio-Economic Analyses
43 Assist to set priorities & draft RD strategies
44 Assist to formulate action plans for implementation of RD strategies
45 Facilitate acceptance of RDPs by the Central Governement
46 Develop & implement Marketing Strategy to implement RDP
RDA
RDA
04/05
RDA
RDA
MGL ASONDGFMAMGL ASONDGFMAMGL ASONDGFMAMGL ASONDGFMAMGL ASONDGFMAMGL ASONDGFMAMGL ASO2003 2004 2005 2006 2007 2008 2009
STEP 1:List m ain activities
from Logfram e
STEP 2:Break activities
Into tasks
STEP 3:Clarify sequence &
dependence
STEP 4:Estim ate start-up,
D uration &com pletion
STEP 5:Sum m arise
Scheduling ofm ain activities
STEP 6:D efine m ilestones
STEP 7,8:D efine expertise
required & allocatetasks
STEP 3:Clarify sequence &
dependence
STEP 4:Estim ate start-up,
D uration &com pletion
STEP 5:Sum m arise
Scheduling ofm ain activities
STEP 6:D efine m ilestones
STEP 7,8:D efine expertise
required & allocatetasks
Activity Schedule
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An Activity Schedule for a small project can be simpleEgypt Textile & Ready-Made Garments' SMG proposal
Text No.Task Responsib. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Stage ( A) Preparation: Markets Penetration and Product / Market Match
2.1 Introduction RR
2.2 Buyers identification and qualification RR/JP/AG/AS
2.3Initial Approach to buyers and consolidation of contacts
RR/JP/AG/AS
2.4 Completion of Sampling and Matchmaking RR/JP/AG/AS
Stage (B): Inward Buying Mission from THE EUROPEAN UNION and Egyptian companies visits to THE EUROPEAN UNIONStage (B-1): Implementation: Inward Buying Mission (IBM)
2.5Preparation of factories, buyers itineraries and completion of buyers visits
RR/JP/AG/AS
2.6 Follow-up activities RR/JP/AG/AS Stage (B)-2 : Implementation: In Country Marketing Support ( ICMS)
2.7Preparation of Individual SMG members programs
RR/JP/AG/AS
2.8 SMG members Visits Follow- up RR/JP/AG/AS
Total ManDays
Weeks after start-up ( TOTAL 5 MONTHS)
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Time Estimation/Schedule for experts should be included
Months Name Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 20 21 22 23 24 Number of
months Geoffry Cobb Team Leader 21 K Kappe LT
International Expert
18
Javier Fargas
LT International Expert
18
Total Man Months 57 Months Name Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Estimated
Number of days Pool of ST Experts
Turnaround 175
Pool of ST Experts
Finance 150
Pool of ST Experts
Marketing 75
Pool of ST Experts
Reg. Dev. / Policy
100
Pool of ST Experts
Institutional Strengthening/ Training
120
Pool of ST Experts
Trade Policy 30
Pool of ST Experts
Quality 50
Pool of ST Experts
Industry Specialist
200
Pool of ST Experts
Bosnian Consultants
350
International Local
Total Man Days
900 350 1250
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Resource and cost schedule
the list of activities should be copied into a Resource Schedule whereby each activity should be used as a checklist to ensure that all the necessary resource/inputs required are provided for
for each activity a list of needed resources/input needs to be developed together with a cost estimation
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Resource and cost schedule
ACTIVITIES / INPUTS Unit Quantity per planning periodCost per unit
Funding source Cost codes Cost per planning period
Project Total
Annual recurrent costs
1st Q 2nd Q 3rd Q 4th Q Donor Govt 1st Q 2nd Q 3rd Q 4th QC1.2 Establish WGs in each region
Equipmentcomputers no. 2 2 1000 2000 2000 4000fax, modem no. 1 500 500 500furniture lump 1 3000 3000 3000
Salaries & allowancesoffice staff mm 4 4 4 4 200 800 800 800 800 3200 3200counterparts mm 2 3 3 3 100 200 300 300 300 1100 1100
ETC
STEP 1:Copy activities
from Activity Schedule
STEP 2:Specify INPUTS STEP 3:
Put inputs into costcategories
STEP 4:Specify units
STEP 5:Specify quantity
STEP 6:Estimate unit cost
STEP 7:Identify funding
source
STEP 8:Allocate cost codes
STEP 9:Schedule costs
STEP 10:Calculate total
STEP 11:Estimate recurrent
costs
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Project Fiches and Terms of Reference
• Project Fiches is the name given to Documents at the end of the Formulation Stage (but can also be called after the Identification stage, albeit in a more preliminary form.
• Terms of Reference are the detailed descriptions of work at any stage of the Project Cycle, generally to contract:
• Pre-feasibility analysis
• Feasibility and design studies
• Appraisal or quality support missions
• Implementation of large and small contract
• Evaluations
• Technical or advisory support
• Audit
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Contents of Project Fiches
• Project Fiches must reflect the outputs and elements of Information required at the end of the Formulation Phase. Although the various EC programmes have differing formats for Project fiches- they are not as standardised as Terms of Reference- generally they will include:
• - Background to the Project- Justification /Situation Analysis• Overall objective and purpose• Target group, location and duration• Results and indicative activities• Resources and Expertise required• Management Arrangements• Risks• Impacts and Indicators• Sustanability • Environmental, social, gender and other issues• Budget Appendices with studies, research, descriptions, etc.
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Contents of Terms of Reference
• Although it will change depending of the Scope of the project, the general format will include:
1. Background to the Assignment
2. Study /mission objectives
3. Issues to be studied
4. Methodology for the study or implementation
5. Expertise required
6. Reporting requirements
7. Workplan and timetable
Appendices with background information or detailed budget.
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6. Implementation, Monitoring and Evaluation Implementation
• Regarding Implementation of projects once tendered and contracted, the EC does not suggest any specific project management methodology, beyond the Logframe Matrix and Monitoring and Evaluation guidelines.
• Reason given by directors is that various standards and methodologies are in the market for the pure “management of the project” (PMI, IPMA, Prince 2, private companies, etc.- they will be described briefly in Section 7), and therefore the EC cannot impose one over the others.
• As long as both the operational and financial aspects of the Indicators, Means of Verification, Activities, Resources and Risks are properly followed and filed, any method can be used by project implementors and contractors.
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Monitoring
Monitoring of projects is described by the EC PCM. It is aimed to support:
identification of successes and problems during the project implementation;informed and timely decision-making;accountability for the resources used and results achieved;stakeholders awareness and participation;evaluation and audit.
Monitoring involves the collection, analysis, communication and use of information about the
project’s progress
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Monitoring system
A good monitoring system should provide relevant information to the right people at the right time to help them take informed decisions.
Monitoring should highlight strengths and weaknesses in the project implementation and enable the responsible people to deal with problems, improve performance, build on success and adapt to changing circumstances
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What to monitor
1. which activities are underway and what progress has been made? (efficiency)
2. at what rate are means being used and cost incurred in relation to progress implementation (efficiency)
3. are the desired results being achieved? (efficiency)
4. to what extent are these results furthering the Project purpose? (effectiveness)
5. what changes in the project environment occur? (impact)
6. Do assumptions hold true?
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Who needs what information
The identification of what information to collect is determined by analysing the following:
project objectives, stakeholders interest and capacity; institutional and management structures; decision making responsibilities
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There are six main stages for developing a monitoring system
1. clarify project scope;2. understand the nature of organisational
relationships, management arrangements and capacity constraints;
3. determine the information needs of project implementers and key stakeholders;
4. review existing information collection systems and procedures;
5. develop and document monitoring system guidelines and formats;
6. provide training and resources to support systems development and implementation
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LFA and monitoring
Analysis of existing situation: a stakeholders analysis including the information
needs; strengths and weakness of existing monitoring
system if any.Activity schedules: structure for preparing operational work plans
against which implementation can be periodically assessed (key tasks, timing, duration, responsibilities);
visual presentation of key tasks that can be used to promote participatory planning
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LFA and monitoring
Logframe matrix: a diagram of objectives, indicators and sources of
information to be used in developing and implementing a monitoring system;
a list of key assumptions.
Resource and budget schedules: format for preparing operational budgets linked to
planned activities and results reference point for resource and financial
monitoring (planned/actual) framework for identifying the resources and costs
required to implement the monitoring
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LFA and monitoring
Risk matrix:
The achievement of project objectives is always subject to influences beyond project manager’s direct control (assumptions and risks). It is very important to monitor this external environment to identify whether or not the assumptions that have already been made are likely to hold true and what new risk may be emerging and which actions have to be taken to mitigate the risk if possible
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Risk matrix
The achievement of project objectives is always subject to influences beyond project manager’s direct control (assumptions and risks). It is very important to monitor this external environment to identify whether or not the assumptions that have already been made are likely to hold true and what new risk may be emerging and which actions have to be taken to mitigate the risk if possible
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Risk matrix
LF ref
Risk Potential adverse impact
Risk level (H/M/L)
Risk management strategy
Responsibility
Beneficiary staff is not motivated to participate in a comprehensive capacity building programme
Lack of consultants ready to start serving in the
A real danger of capacity building being sub optimal; activities might collapse once the TA is over
The voucher counselling system cannot be
M
H
•Propose staff incentive plans•Discuss with project partners •Recommend to replace certain staff
More training for Local Service and Training
BeneficiaryProject managementDonor
Project managementDonor
1
1.1
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Interviews
Monitoring often includes making short visits to a project site. It is very important to a checklist of things to consider as well as a list of specific questions to ask.Questions need to be targeted on the project.
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How to analyse the information/data
• Analysing data and effectively turning data into useful management information is different from merely collecting it.
• The key issue in the monitoring activity is how to analyse and present the data collected. We should bear in mind that quantitative data involve numbers that can be subject to various forms of statistical analysis while qualitative data usually provide information on people’s views, opinion or observations and are presented in a narrative way.
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Balancing quantity and quality
• An appropriate balance of the two with an interpretation of the quantitative data being enriched by the qualitative analysis (what people think).
• In any analysis, objective opinions, surveys and interviews are required for
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How to analyse the information/data
Planned vs Actual
Monitoring is primarily about comparing what was originally planned with what actually happened (including costs and resources). This analysis is the basis of any monitoring systems. If we learn from our records that something is not happening as planned, we should also analyse the causes of the problem and determine an appropriate remedial action
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How to analyse the information/data
Percentage/ratios
Calculating percentages and ratios is a very useful way to present the performance of the project. Such ratios helps us to see how close we are to achieving what we originally planned. Low percentages figures immediately highlight a potential area of concern unless we have a valid explanation for this.
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How to analyse the information/data
Trends over time and comparison between time periods
An analysis of data over different time periods can help to see how the project is performing. However, this is useful only if we have a clear and consistent set of indicators (measuring the same thing in the same way at different points in time).
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How to analyse the information/data
Geographic variance
Projects that are implemented in different locations can be monitored in a way that they help identify geographic variations while aggregate data would not allow this
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How to analyse the information/data
Group variance
It might be useful to observe variance in outcomes between different social groups (impact on men and women). This implies that data need to be processed and classified keeping in mind that they need to be disaggregated
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Focus of the analysis
Questions to answer
Information needed
Planned vs actual(efficiency)
Risk & Assumptions
Design(relevance)
Project results(effectiveness)
Sustainability
Impact
Is the project doing what was originally planned?
Activity scheduleResource scheduleLogframe matrixProject ReportsInterviews
Are the assumptions holding true? Are new risks emerging?
Risk matrixLogframe matrix
Was the project design relevant? Is it still relevant?
Logframe matrixStakeholders Analysis (etc LFA)
What difference is the project making?
Logframe matrix, Project ReportsInterviews
Are the project purposes likely to be sustainable?
Will the project impact on the overall objective?
Logframe matrix
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Evaluation
Ex ante
is the feasibility study of the project and it sets out the aims of it. Usually it is revised during the project implementation in the light of the finding of the Monitoring exercise
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Evaluation
Mid-term/interim
is conducted approximately halfway during the project implementation. The mid-term/interim evaluation will use the information contained in the Programme and Project monitoring reports but will not be based exclusively upon them exercise
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Mid-term/interim evaluation
A project can achieve its immediate objectives but not have the impact that had been anticipated. The mid-term/interim evaluation should therefore address the following:
have the right objectives been set for the Programme/projectare the key problems being addressed/the key target groups being reached?have the right Projects/Programmes been identified to achieve the wider objectives of the Programme/Policy?…………………
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Mid-term/interim evaluation
………………. are the Programmes/Projects being implemented
efficiently and effectively? are they having the desired and anticipated effects
(achieving the desired results, objectives and impact)? are the management and implementation
arrangements for the project effective?
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Evaluation
Ex post
is usually carried out one or two years after the period of the strategy has elapsed. Although the ex post evaluation will analyse the relevancy, efficiency and effectiveness of the Project/Programme, the primary focus will be upon impact and sustainability
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The information need varies depending on what we are analysing and therefore it is useful to see which information is to be collected for each evaluation criterion
What information/data we need
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Focus of the analysis
Questions to answer
Information needed
Relevance
Efficiency
Effectiveness
Impact
Sustainability
Is the project design relevant? Logframe matrixStakeholders Analysis, Problem Analysis, Analysis of Objectives, Analysis of Strategies (if available)Monitoring Reports
How well the various activities transformed the available resources into the intended results?
Logframe matrix
How far the project’s results were used or their potential benefits were realised?
Logframe matrix
To what extent the benefits received by the target beneficiaries have had a wider overall effect?
Logframe matrixInterviews
Are the positive outcomes of the project at purpose level likely to continue after the external funding?
Interviews
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The type of analysis we need to carry out depends on which questions we are answering and varies from project to project. However, a general overview can be given analysing more carefully the evaluation criteria and the type of question they are aimed to answer
How to analyse the information/data
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The relevance of a project relates primarily to its design and concerns the extent to which its stated objectives correctly address the identified problems or real needs.
It needs to be kept under review throughout the life of the project in case changes occur either in the nature of the very problems originally identified, or in the circumstances - whether physical, political, economic, social, environmental, institutional or policy - in which the project takes place, necessitating a corresponding change of focus
Relevance
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Relevance concerns the appropriateness of the project design to the problems to be resolved at two points in time:
1.when the projects was designed
2.at the time of the evaluation
Relevance
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identification of real (vs perceived) problems or needs, and of the correct beneficiaries, and how well the project’s initial design addressed them;
quality of assessment of local absorption capacities; quality of assessment of local implementation
capacities; where possible, preparatory activities undertaken
(policy assessments, sector reviews, pre-feasibility studies including financial and economic analysis, planning workshops, etc), by whom, how well the findings were incorporated into the final project document, and any obvious omissions;
…….
Relevance focuses on:
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appropriateness of initial consultations with, and participation by, local key stakeholders, national authorities, intended beneficiaries, and other donors (the last-mentioned especially on complementarity aspects) before the design was confirmed and implementation started;
complementarity and coherence with related activities undertaken elsewhere by government or other donors, at the same level or at a higher level, rather than duplication or conflict;
the quality of the entries in assumptions, risks and conditions column of the LogFrame at the appropriate levels;
Relevance focuses on:
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overall design strengths and weaknesses including:
quality of the Logframe (or LogFrames if a multi-component programme);
clarity and internal consistency of the stated overall objectives, purpose, and results; whether the objectively-verifiable indicators of achievement (OVIs) were well-chosen and widely agreed;
realism in choice and quantity of inputs; overall degree of flexibility and adaptability to
facilitate rapid responses to changes in circumstances.
Relevance focuses on:
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The efficiency criterion concerns how well the various activities transformed the available resources into the intended results (sometimes referred to as outputs), in terms of quantity, quality and timeliness.
A key question it asks is “where things done right” and thereby also addresses value-for-money, that is whether similar results could have been achieved more by other means at lower cost in the same time.
Efficiency
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The quality of day-to-day management, for example in:
management of the budget (including whether an inadequate budget was a factor);
management of personnel, information, property, etc.;
whether management of risk was adequate, i.e. whether flexibility was demonstrated;
in response to changes in circumstances; relations/co-ordination with local authorities,
institutions, beneficiaries, other donors; respect for deadlines;
Efficiency focuses on:
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Cost and value for money:
how far the costs of the project were justified by the benefits - whether or not expressed in monetary terms - that they generated, in comparison with similar projects or known alternative approaches, taking account of contextual differences
Efficiency focuses on:
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Contributions from local institutions and government (e.g offices, experts, reports,. tax exemption, as set out in the LogFrame resource schedule), target beneficiaries and other local parties:
were they provided as planned, could re-allocation of responsibilities have improved performance, were communications good?
Efficiency focuses on:
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The effectiveness criterion, in LogFrame terminology, concerns how far the project’s results were used or their potential benefits were realised - in other words, whether they achieved the project purpose.
The key question is what difference the project made in practice, as measured by how far the intended beneficiaries really benefited from the products or services it made available.
Effectiveness
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whether the planned benefits have been delivered and received, as perceived mainly by the key beneficiaries, but also taking account of the views of donor management, the responsible national Government authorities, and other concerned parties (NGOs, business associations etc)
Effectiveness focuses on:
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the appropriateness of the indicators of benefit used in the above assessment to measure achievement of the project purpose (this is also relevant to cost-effectiveness analysis as referred to in the footnote on the previous page);
this should include a judgement on how promptly and effectively the project management reacted to any changes that occurred following the initial design by amending indicators found no longer to be appropriate
Effectiveness focuses on:
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If the assumption and risks assessments at results level turned out to be inadequate or invalid, or unforeseen external factors intervened, how flexible management adapted to ensure that the results would still achieve the purpose;
- how well it was supported in this by key stakeholders including Government, Commission (HQ and locally), etc.: in summary, “were the right things done” to ensure that the potential beneficiaries actually benefited? - how unplanned results may have affected the benefits received
Effectiveness focuses on:
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The term impact, sometimes referred to as outcome, denotes the relationship between the project’s purpose and overall objectives, that is the extent to which the benefits received by the target beneficiaries had a wider overall effect on larger numbers of people in the sector or region or in the country as a whole. The analysis, which should be both quantitative and qualitative wherever possible, will need to take account of the fact that, at this level, the project will normally be only one of a number of influences contributing to the wider outcome
Impact
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to what extent the planned overall objectives have been achieved, and how far that was directly due to the project;
if there were unplanned impacts, how they affected the overall impact;
whether the project’s LogFrame indicators at this level were suitable and, if not, whether management amended them;
whether overall the desired wider impact could have been better achieved otherwise.
Impact focuses on:
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The fifth and final - and often most important -criterion, sustainability, relates to whether the positive outcomes of the project at purpose level are likely to continue after the external funding, and also whether its longer-term impact on the wider development process can also be sustained at the level of the sector, region or country
Sustainability
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The first step for a correct monitoring and evaluation exercise is to start from the policy framework to see how and why the project/programmes have been conceived. The SME strategy read:
“The Programme to support the access of SMEs to training and consultancy services covers the period 2002-2005 and directly responds to the Governmental Draft Strategy for Sustaining the Development of SMEs 2004-2008 updated in 2003, as well as to the Governmental Programme 2001-2004.”
Clarifying project scope
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Ownership of objectives and achievements, e.g. how far all stakeholders were consulted on the objectives from the outset, and whether they agreed with them and remained in agreement throughout the duration of the project;
Policy support and the responsibility of the beneficiary institutions e.g. how far donor policy and national policy corresponded, and the effects of any policy changes; how far the relevant national, sectoral and budgetary policies and priorities affected the project positively or adversely; the level of support from governmental, public, business and civil society organisations; and whether national bodies to provided resources;
Sustainability focuses on:
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Institutional capacity, e.g. the degree of commitment of all parties involved, such as Government (e.g. through policy and budgetary support) and counterpart institutions; the extent to which the project is embedded in local institutional structures; if it involved creating a new institution, how far good relations with existing institutions were established; whether the institution appears likely to be capable of continuing the flow of benefits after the project ends (is it well-led, with adequate and trained staff, sufficient budget and equipment?); whether counterparts were properly prepared for taking over, technically, financially and managerially
Sustainability focuses on:
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Adequacy of the project budget for its purpose and intended results;
The socio-cultural factors, e.g. whether the project is in tune with local perceptions of needs and of ways of producing and sharing benefits; whether it respects local power-structures, status systems and beliefs, and if it seeks to change any of those, how well-accepted are the changes both by the target group and by others; i.e. how well it was based on the analysis of such factors, including target group/ beneficiary participation in design and implementation, the quality of relations between the external project staff and local communities.
Sustainability focuses on:
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Financial sustainability, e.g. whether the products or services provided were affordable for the intended beneficiaries and remained so after funding ended; whether enough funds were available to cover all costs (including recurrent costs, i.e. operating and maintenance costs), and continue to do so after funding ended; and economic sustainability, i.e. how well the benefits (returns) compared to those on similar undertakings once market distortions are eliminated.
And finally, on the replicability of such action and results in other regions, areas, countries or target groups.
Sustainability focuses on:
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EC evaluators usually include in their assessments an overall performance rating for each of the above five evaluation criteria, on the basis of the following scale:highly satisfactory (fully according to plan or better);satisfactory (on balance according to plan, positive aspects outweighing negative aspects);less than satisfactory (not sufficiently according to plan, taking account of the evolving context; a few positive aspects, but outweighed by negative aspects);highly unsatisfactory (seriously deficient, very few or no positive aspects)
Performance ratings
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Project Monitoring & Evaluation:
A pilot case
Programme to support the access of
SMEs to training and consultancy
services in Romania
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The Programme is a multi annual grant scheme - Develop the capacity of SMEs:
Measure 1 - Business infrastructure necessary to improve the competitiveness of SMEs
a) Support innovative SME and technology transfer among SMEs
b) Support consulting networkc) Support the access of SMEs to training and
consultancy services d) Support access to business information
Clarifying project scope
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1. facilitate the access of SMEs staff with managing and executive responsibilities to training initiatives on management (including quality and financial management), marketing, strategy and planning, investment sources and financing methods, EU legislation and practices in the SME sector and in other sectors which are priorities for the SME activity;
2. facilitate the access to consulting services for the development of business plans and marketing plans, the access to finance, certification of standardisation systems, quality certification according to EU norms
The project purpose (specific objectives)
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The Agenţia Naţională pentru Întreprinderi Mici şi Mijlocii şi Cooperaţie (ANIMMC, or National Agency for SMEs and Cooperatives) is the responsible body for the implementation of the annual programme
Further to a decision of the President of the ANIMMC approving the implementation procedures, applicants for consulting and training can submit their requests for co-financing until the end of the year 2004.
Organisational relationships, management arrangements and
capacity constraints
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“The Agency will finalise the evaluation process within 30 days from the receipt of the complete application.”
“The selection principle is “first come, first served”, once the application is fully compliant with all administrative requirements and eligible under the criteria stated in the implementation procedures.”
Organisational relationships, management arrangements and
capacity constraints
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Eligibility is related to:
legal status of the applicant and relevant documentary evidence (of the implementation procedures)
type of service for which financing is requested
Organisational relationships, management arrangements and
capacity constraints
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Once the evaluation has been carried out, the Agency sends a Notification of Financing to the successful applications and notifies to the unsuccessful ones the reason of their exclusion, which can be as follows:
application received after the deadline; application received after the maximum budget
available has been allocated; application is not eligible.
Organisational relationships, management arrangements and
capacity constraints
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“The applicant has to send to the Agency a Formal Request of financing, together with the original Notification for Financing and a number of Supporting documents as well as a list of costs of the consulting or training, according to the instructions provided in Annex I of the implementation procedures.
Organisational relationships, management arrangements and
capacity constraints
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Financing mechanism
ANIMMCANIMMC
APPLICANTSAPPLICANTS
1Approval of
Implementationprocedures
2Application
Form
3Notification of
Financing
4Request forfinancing
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“The main constraints in monitoring and evaluating this programme is that the programming phase has focused exclusively on the disbursement of the funds, rather than planning monitoring and evaluation.”
“The consequence is that all the documents produced by the Agency, as well as those requested to the applicant are aimed to facilitate the selection for financing and a proper disbursement and not the analysis of what the project has achieved and how has achieved it.”
Capacity constraints
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“The first step in devising a monitoring and evaluation system for a programme under formulation is to define a Logframe Matrix for the programme.”
“The criteria for future Evaluation must be understood and analysed so as to design a Monitoring and Evaluation system.”
Developing guidelines and formats
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Logical Framework MatrixProject
Description Indicators Sources of verification
Assumptions
Overall objective:
to contribute to the development of SME competitiveness
Purposes:• to develop
entrepreneurship skills for facing market globalisation and EU integration;
• to increase the number of successful entrepreneurs
Results:Improved access to relevant
training coursesCompanies get contribution
for financing business and marketing plans
Activities:•Approve the grant for training is approved•Approve the grant for consulting services
Increase in average turnoverIncrease in exportsIncrease in no. of employeesIncreased in labour productivityIncrease in innovation exp.Decrease of mortality rate
Skills are improvedStaff undertakes initiatives/operational improvementsCompanies improve their competitivenessCompanies implement the financed plans
Increase no. of training hours per employee
Increased number of business and marketing plans
National official statistics and SME surveys carried out by NAIMMC
Skills audit reportsProject reportsInterview after 5 year from the completion of the activities financed by the grant
Project reportsMIS
•The government policy towards SMEs remains unchanged or is improved•There are no major international constraints to the development of Romanian SMEs
•People taking part in the training activities are properly selected and motivated•Business and marketing plans are implemented by the companies
•Applications for grants are received•There are a number of enterprise willing to undertake business and marketing development plans
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Evaluation criteria
Focus of the analysis
Question to answer
Information needed
Relevance Is the project design relevant? Does the project correctly address the identified problems/real needs?
•Planning documents•Logframe•SMEs surveys•Interviews with assisted companies
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Evaluation criteria
Focus of the analysis
Question to answer
Information needed
Efficiency
How well the grants have actually improved the access to training courses and enabled the companies to finance marketing and business plans?
•Data on training hours per employee before the project (reports/MIS)•Data on business and marketing plans before the project (reports/MIS)
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Evaluation criteria
Focus of the analysis
Question to answer
Information needed
Effectiveness
How far the improved access to training and the financing of marketing and business plans have led to an increased competitiveness?
•Comparison between the skills audit (before and after)•Have operational improvements been undertaken in the areas covered by the training? (reports)•Increase in turn over (report/MIS)•Increase in no. of employees (report/MIS)•Has the company implemented the plan? (report)
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Evaluation criteria
Focus of the analysis
Question to answer
Information needed
Impact
To what extent have the benefits received by the target companies had an impact at the national level on SME competitiveness?
•Indicators on company competitiveness (national statistics and SME surveys)
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Logframe and evaluation criteria
Focus of the analysis
Question to answer
Information needed
Sustainability
Are the positive outcomes of the programme likely to continue after the two years of financing?Will the companies make use of the skills improvements and will they implement and follow up the marketing and business plans?
•In which way the training courses are being capitalised? Any operational change/initiative is being discussed in the areas covered by training? •Are the beneficiaries willing to implement the business/marketing plans?•(Interview with companies)
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In the above table we have listed the type of information that we need in order to answer the questions related to the evaluation criteria.
Furthermore we will also require the following tools for the Monitoring system:
Management Information System; Skills audit; Progress reports; Sample interviews with companies.
Information needed
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Management Information System
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• A Database is the best instrument to gather all the information on the beneficiary companies that will allow monitoring and evaluation.
• Once the fields have been identified, we have to establish how information can be obtained and when.
• For instance the data needed for the above database can be obtained from:
Application form Progress reports Final report Annual reports (for 5 years)
Management Information System
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Skills AuditName of the trainee 1 2 3 4 5
Mr X
Position in the company
Marketing Director
Title of training course
Skill audit:
Communications skills
Market analysis
Knowledge of the market
Knowledge of bench. tech.
Dev. Marketing campaign
Dev. Mkt campaign results
Eval. Marketing planning
Identify comm. tools
……………………..
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Reports in a programme like the one described will mainly aim to collect the data we have identified as necessary to conduct monitoring and evaluation and namely:
update on turn over, number of employees, exports, labour productivity, innovation expenses, training hours;
information on business/marketing plans drafted/implemented;
information on any initiative/operational improvements in the areas covered by training
Reports
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Interviews with companies
• Interviews with companies are very important for monitoring and even more important for evaluation as they are useful to assess all the quality part of the information which cannot be assessed.
• Interviews have to be targeted sub-project (for an individual SMEs) by sub-project. For sub-projects belonging to the same area, a common list of questions could be developed.
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Global and Annual Operating Plans
• The EC has a standard format for drafting Global Operating Plans and Annual Operating Plans (POG and POA in Spanish). Download at EuropeAid website.
• Global Operating Plans are a sort of long Inception report, with Stakeholder analysis, Problem analysis (through workshops and interviews), Strategies/options, Activities, Resources, Budgets, CashFlows and other appendices (usually financed with the first short term missions).
• Annual Operating Plans are the yearly activities since contract signature, with the first twelve months of activities, budgets, expert missions, etc. The second, third and other years (if relevant) have to follow the same format.
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Economic and Financial Analysis
• Financial Analysis; all classical techniques of cash-flow, profitability, return, discounting, etc., apply. The issue is to WHOM and in which manner, but various hypotheses (scenarios) can be made.
• Economic Analysis: - The Effects Method: tries to quantify the effects on the local, regional,
national or supra-national economy, summing the Direct effects (goal), the Indirect effects and the Secondary effects (unintended frequently). The backward linkages of our project entities with other entities should be considered.
- Shadow Prices method: Shadows prices can be estimated that reflect the acceptable prices for the identified society. These prices can be real prices adjusted because of market distortions, or simply, international prices or the opportunity cost (as a proxy). Eliminations of transfers (subsidies, taxes, etc.) should be made to avoid distortions. NPV and IRR can be calculated.
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FINANCIAL AND ECONOMIC ANALYSIS • Economic and Financial Analysis (EcoFin Analysis) is one of the relevant
forms of analysis of a project among others (institutional, environmental, political, social, gender, etc.). It is not compulsory as is the LogFrame matrix and usedby EuropeAid mostly in developing regions, not so much transition or mid-level countries or regions.
• Financial Analysis focuses on the point of view of one entity or group of
institutions (beneficiary, target group, etc.). This is done through Cost-
benefit analysis or Cost-effectiveness analysis.
• Economic Analysis on the point of view of society at large... or at least the wider environment of the project. This is done through the Effects Method or the Shadow-pricing method.
• The philosophy of Eco-Fin analysis is to measure the incremental value of the “with-project” situation and the “without-project” situation.
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Economic and Financial Analysis: • EcoFin Analysis places first the Analysis in relation to the LogFrame
Matrix, its stakeholders, results intended, indicators, risks, etc.
• Second it analysis the main Entities involved and affected by the project (artisans, farmers, SMEs, consumers, government agencies, development agencies, etc.). Then, the flows (of money, materials, services, etc.) is charted and quantified:
Villagers Cooperatives
Rural Bank
Sales of goods
Savings
Microcredits
Deposits Interest
Small loans
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Economic and Financial Analysis
• Cost-Benefit Analysis: - Values benefits by direct calculation of benefits (increase of production
with real prices or reduction of costs) or by “proxies”, i.e. representative factors which are acknowledged to be a reliable estimate (e.g. reduction in Vehicle maintenance for a road improvement project).
- Includes cost recovery , i.e. Payment by users or contributions,- Allows for “profitability” (highest cost-benefit proportion) criteria for
selection of projects. Can also calculate usual profitability ratios of pay-back period, Net Present Value (NPV) and Internal Rate of Return (IRR).
- Cost-Effectiveness Analysis:- Analysis intangibles (not possible to estimate monetary value)- Compares cost per unit of options (e.g. vaccination per child)- Is usually only applicable to a sector, as inter-sector (social or industrial
are usually not applicable).
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Conclusions
• Project Cycle management looks simple (one matrix,
qualitative issues in stakeholder, problem and objectives analyses, frequently obvious objectives, results and indicators), but it is NOT easy to come up with realistic Indicators, Means of verification which satisfy the effectiveness-efficiency-impact measurement, a good Risk-assumptions analysis, and a concise, yet complete, summarised Activities and Resources chart.
• Writing Terms of reference (or Project fiches) consists of being concise- not wordy- informative, complete (in requirements of the work and analysis), and having experience as to how projects and situations really work (for realistic estimates and outcomes). When budgeting the project, a bottom up and a top-down estimation of prices is useful, unless freedom is left to tenderers, so as to see if they come up with new or innovative manners of solving the requirements which hasn’t been foreseen.
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Conclusions
• Economic and Financial Analysis requires some imagination in the parameters, some knowledge of the underlying economics of the sector or products/services, and a bit of understanding of the desired level of certainty of the “economic” estimates which the main reader (s) of the analysis will accept (frequently a function of their educational background and their role at the beneficiary, implementing agency, EC Delegation or Brussels office, etc.
• Nothing beats experience - in improving one’s skills of PCM , EcoFin or drafting ToRs – as undertaking all the tasks required for a project from its idea to final evaluation and sustainability.
• PRACTICE DOES MAKE PERFECTION IN THIS AREA. THANKS