quarterly progress report - united nations development

Quarterly Progress Report January – March 2016

Development of a robust standardization, quality assurance,

accreditation and metrology (SQAM) infrastructure in Malawi

This project is funded by the European Union

April 2016

Project: FED/2012/297-561

UNDP Project ID: 00083913

UNIDO Project ID: 106075 / 2000002410

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

2016

Quarterly Report Jan-Mar)

(April 2016)

CONTENTS

ACRONYMS .................................................................................................................. 3

Executive Summary ........................................................................................................ 4

A. Situational Background/Context ...................................................................... 6

B. Assessment of Project Results During the Reporting Period .......................... 7

C. Financial Status and Utilization ..................................................................... 19

D. Lessons Learned ............................................................................................ 21

E. Conclusion ..................................................................................................... 22

F. Future Work Plan ........................................................................................... 23

Annexes: ....................................................................................................................... 24


(April 2016)

ACRONYMS

AWP Annual Work Plan

BOBS Botswana Bureau of Standards

COMESA Common Market for Eastern and Southern Africa

CTA Chief Technical Advisor

DTIS Diagnostic Trade Integration Study

ERP Enterprise Resource Planning

EU European Union

FAO Food and Agriculture Organization of the United Nations

HQ Headquarters

IE International Expert

IFSTL International Food Safety Training Laboratory

INNOQ National Institute for Standards and Quality (INNOQ

ISO International Organization for Standardization

MATCB “Malawi: Market access and trade capacity building support for

agro-industrial products”

MBS Malawi Bureau of Standards

MDGs Millennium Development Goals

MGDS Malawi Growth and Development Strategy

MoIT Ministry of Industry and Trade

MSD Metrology Services Department

NEP National Enquiry Point

NML National Metrology Laboratory

NASFAM National Smallholder Farmers Association of Malawi

NORAD Norwegian Agency for Development Cooperation

NQI National Quality Infrastructure

NQP National Quality Policy

NQS National Quality Strategy

PM Project Manager

SME Small and Medium sized Enterprise

SADC Southern African Development Community

SQAM Standardization, Quality Assurance, Accreditation and

Metrology

ToRs Terms of Reference

UNDAF United Nations Development Assistance Framework

UNECE United Nations Economic Commission for Europe

UNDP United Nations Development Programme

UNIDO United Nations Industrial Development Organization

USAID United States Agency for International Development

WHO World Health Organization

WTO World Trade Organization

http://www.fao.org/

http://www.iso.org/


(April 2016)

Executive Summary

The purpose of the “Development of a robust standardization, quality assurance,

accreditation and metrology (SQAM) infrastructure” project is to contribute to a more

adequate, effective and sustainable National Quality Infrastructure (NQI) in Malawi

in accordance with international and regional principles and practices (e.g. Common

Market for Eastern and Southern Africa (COMESA), Southern African Development

Community (SADC)), by supporting the enhancement of the performance of the

Malawi Bureau of Standards (MBS). This will have direct implications in terms of

benefits for Malawi enterprises through improved business services provided by the

National Quality Infrastructure and indirectly, and in the long term, in terms of

improved protection of consumer rights of Malawian citizens.

The project is being implemented in terms of a contribution agreement between the

European Union (EU) and the United Nations Development Programme (UNDP). An

inter-agency agreement (IAA) was subsequently concluded between the UNDP and

the United Nations Industrial Development Organization (UNIDO) for UNIDO to

provide specialized technical assistance in order to ensure the success of the overall

project.

This progress report to the UNDP presents a summary of the work done by UNIDO

during the first Quarter of 2016 (1 January to 31 March) and this report serves

therefore to fulfill reporting requirements in the IAA. The reference for this report is

the Annual Work Plan for 2016 (AWP 2016) as finalized based on the outcomes of

the Annual Work Planning meeting and the subsequent approval thereof by the

project Steering Committee.

The report shows that there was as anticipated relatively slow progress with

implementation this quarter. Important to note is however that the initial slow

implementation was provided for in the AWP2016 and that UNIDO in financial

implementation terms exceeded the target for the quarter. Financial implementation

for the quarter was an amount of USD 94,219.69 as per inputs received by UNIDO’s

Financial Management of Technical Cooperation Unit) bringing the total financial

expenditure to USD 1,790,940.77 (also refer to table in Annex 2)1.

Also, notably: (i) the award of certificates during the World Standards Day event to

the 93 MBS officers trained by the British Standards Institute Group; (ii) the

conclusion of the out-of-country group trainings in metrology with the final training

conducted in Botswana and Mozambique on the use of the weighbridge verification

equipment; (iii) pre-assessments by International Expert of MBS implementation of

the ISO17021 and ISO17065 quality management systems in view of the readiness of

MBS for eventual accreditation to these systems; (iv) the installation of the HPLC and

aflatoxin reactor; (v) conclusion of the centralized procurement processes for

equipment in accordance with the approved next cycle procurement plan, in particular

a Universal Testing Machine, a High Pressure Capillary Ion Chromatograph, an

1 The financial information at the date of this report is regarded as preliminary, this in consideration of

the IAA provision for UNIDO to submitted the final financial report by 31 July 2015.


(April 2016)

Automated Atmospheric Distillation Analyzer and equipment required to address

gaps in the capabilities in mass metrology; and (vi) the first mission by the Food and

Agricultural Organization of the UN (FAO) in support of the process for the

development of draft primary legislation for food safety control in Malawi.


(April 2016)

A. Situational Background/Context

There is a clear need for rapid and sustainable economic growth if Malawi is to

achieve the Millennium Development Goals (MDGs) and the overall objective of

poverty reduction on a meaningful scale. Trade, as recognized by the Malawi Growth

and Development Strategy II (MGDS II), has the potential to be an engine for growth

that can lift many Malawians out of poverty.

Malawi’s standardization, quality assurance, accreditation and metrology

infrastructure is currently inadequate to support the growth in exports envisaged by

the MGDS II. The MBS is the National Enquiry Point required by the World Trade

Organization (WTO) under the Agreement on Technical Barriers to Trade. MBS sets

and implements standards and conducts conformity tests on selected imports and

exports. However, certificates from MBS are not recognized widely and exporters

incur high costs to obtain certification overseas. More generally, MBS has very

limited infrastructure to meet demands for the provision of SQAM services within

Malawi.

To address these issues, the SQAM project intends to achieve internationally

recognized accreditation of the conformity assessment services of the MBS,

contributing to an efficient and adequate National Quality Infrastructure in Malawi by

2016. This will have direct benefits for Malawian enterprises, and indirect, long-term

benefits for Malawian citizens in terms of improved protection of consumer rights.

As well as the MGDS II, the SQAM project also aligns with the United Nations

Development Assistance Framework (UNDAF) 2012-2016. The project will

contribute to poverty reduction through the achievement of UNDAF Outcome 1.2,

“Women, youth, people with disability and households benefit from decent

employment, income generation and pro-poor private sector growth by 2016,” under

Theme 1, “Sustainable and equitable economic growth and food security”. More

directly, the project ties into UNDAF Output 1.2.2 that aims at improving Malawi’s

access to international and regional markets.

The Lead Implementing Partner for the project is the MBS. Financial and

Management oversight is provided by the UNDP whilst UNIDO provides specialist

technical expertise.

The National Quality Policy (January 2014) paves the way for Malawi to gradually

implement a modernized National Quality Infrastructure and is a statement by the

Government of Malawi of commitment towards this modernization process and lays a

solid foundation that supports the project objective and outcomes. It is however

essential for the MoIT to ensure the policy is implemented and promoted.


(April 2016)

B. Assessment of Project Results During the Reporting

Period

This progress report presents a summary of the work done by UNIDO during the first

Quarter of 2016 (1 January to 31 March) in accordance with the Annual Work Plan

for 2016 (AWP 2016) as finalized based on the outcomes of the Annual Work

Planning Session and the subsequent approval thereof by the project Steering

Committee and decisions agreed to during Project Management and Steering

Committee meetings.

With confirmation by the European Union of project extension of 24 months granted

until 17 May 2018, there is great importance to conclude amendment of IAA. Despite

early work initiated to attempt finalization of this matter as early as possible, the IAA

is still in draft stage at the time of this report with a need for this amendment to be

completed as soon as possible to ensure smooth implementation beyond the current

project end date of 30 April 2016.

The report shows that there was as anticipated in the AWP2016 relatively slow

progress with implementation this quarter. The main contributing factors being:

UNIDO submitted an invoice for a next installment of EUR 781,784 on

8 December 2015 to replenish project funds. Letter of acknowledgement was

received from the UNDP on 6 January, 2016 indicating that despite request, a prompt

transfer of funds was not yet possible due to the next installment from EU to UNDP

not yet being received;

The approval process of the AWP2016 was only concluded during this reporting

period and this is a prerequisite for implementation both by UNIDO and at

National Level by MBS.

The target for implementation as was foreseen for the quarter in AWP2016 was

however exceeded in financial implementation terms by UNIDO.

The main focus of implementation by UNIDO during this reporting period was to

continue with activities initiated during 2015, and to initiate where possible new

implementation actions considering however that the essential signing by all parties of

the AWP2016 to ensure implementation could begin was only concluded during this

quarter. Implementation actions in several areas are also dependent on various

national implementation actions currently in progress and not all outputs as

anticipated from these national implementation actions were received for UNIDO to

respond (eg. limited advances with Outputs 3.1(b) and 3.2 ISO17021 and ISO17065

documentation systems, and no progress with Output 6 Cohort II companies and value

chain selection.). Some of the key achievements from UNIDO implementation actions

this quarter include:

Output 1

The printed copies of the final training report and certificates for the in-country

training courses presented by the British Standards Institutions Group in terms of

contract by UNIDO were provided and presented to the MBS (note that the

electronic versions of these documents were circulated in 2015). What follows is


(April 2016)

for MBS Management to consider the various findings and recommendations as

outlined in the report and for participating officers to put into practice the

knowledge gained from these courses.

The list of MBS officers to participate in the out-of country training in response to

the requirements of the Testing Services Department were finalized and provided

to UNIDO in order to commence administrative action. This training Programme

at the International Food Safety Training Laboratory (IFSTL) – a joint institute in

partnership between US FDA and University of Maryland – will see its first

training take place April 2016, and the last training in November 2016.

Output 3:

The final training on the software system of the High-Performance Liquid

Chromatograph (HPLC) for analysis of food contaminants (especially

mycotoxins, and in particular the aflatoxins and analysis of vitamins) was

completed this quarter and the system is now fully operational and in regular use.

The Certified Reference Materials (CRMs) were delivered to MBS and these

provide for MBS to now undertake validation of various testing methods. These

CRMs are essential to ensure traceability requirements of ISO17025 can be met.

The delivery of equipment required to address gaps in the capabilities in mass

metrology (including a class F2 weight set (1 mg -20 kg); mass comparators,

balance of 200g and 520g capacity, computers to be used for the analysis of data

during laboratory and on-site calibrations; and digital thermometer-hygrometer to

allow for monitoring of laboratory environmental conditions) was completed and

installation and commissioning foreseen for Q2 of 2016.

Automated Atmospheric Distillation Analyzer (to be used in the petrochemicals

laboratory to analyze distillation trend of fuels) was successfully delivered by

supplier, installation and training took place during March, 2016.

Following mission on pre-assessments of MBS ISO17021 and ISO17065 quality

management systems undertaken during December by International Expert

(Shaukat) contracted by UNIDO, report by IE was received and very well received

by MBS. The report outlined very clearly the gaps in these systems in view of

eventual accreditation and outlined various next actions, including for example

Training for MBS officers on ISO19011 Guidance on auditing management

systems, completion of documentation and ensuring the system is implemented,

ensuring that all system records are available, ensuring various committees are

established and operational and the filling of vacancies.

UNIDO has noted that there has been very little progress at the MBS since the IE

concluded its mission with notably the crucial action to complete the

documentation (MBS target was for this to be done by end of this quarter). It is

therefore clear that further technical assistance to MBS simply has to be initiated to

meet the objective of accreditation by end of 2016. The IE is heavily engaged at

present in UNIDO project in Nigeria where five conformity assessment bodies are

being established. UNIDO proposes that a possible way forward to support MBS

could be for the project to support an attachment of MBS officers to the Nigeria

project to gain from the work being done there and for the IE to oversee the

completion of the documentation management system. If this is not considered

feasible UNIDO advises that an IE is contracted to work in continuous mode with

MBS.


(April 2016)

Output 5:

The report by FAO of the November mission is still under development and will be

shared once received.. Initial feedback from FAO outline that key challenges for

Malawi in matters concerning food safety are (i) to resolve the institutional

arrangement related to the effective administration of a Food Safety Law and (ii)

for the law to be informed by a Food Safety Policy.

Output 6:

Technical Assistance to the Cohort I companies commenced this quarter with the

inception mission by International Expert Anya Knoetze to provide technical

assistance to the three (3) companies in the implementation of ISO22000 Quality

Management Systems (QMS) commencing late March and will concluded during

April.

The mission also provides for the training on ISO22000 and HACCP to the

representatives of these companies but also to the 18 individuals nominated by

MBS to form the core of the trainers/counselors and potentially also auditors.

The planning of the Technical Assistance of the four (4) Cohort I companies in

implementation of ISO9001 QMS is well advanced and will be implemented

during quarter 2. The mission will also provide for the training on ISO9001 to the

representatives of these companies but also to the 18 individuals nominated by

MBS to form the core of the trainers/counselors and potentially also auditors.

UNIDO is however still awaiting final decisions under national implementation

modality related to:

o The list of Cohort II companies which applied for assistance to MBS during the

2015 process to also benefit from ISO9001 and ISO22000 assistance

o Consensus at national level of the value chains in accordance with the National

Export Strategy (NES) to benefit from technical assistance.

o The AWP2016 is clear on the above inputs and the requirement for this to have

been concluded by the end of this reporting period (quarter 1). UNIDO

implementation beyond Cohort I actions cannot commence if these inputs are

not forthcoming.

The tables on the pages to follow present a summary of the status of progress of the

activities for each output where UNIDO is listed as the party responsible for

implementation.

Output 1: Strengthened capacity of the Malawi Bureau of Standards to deliver

business services and achieve financial sustainability ACTIVITY STATUS

1.0 National Quality Policy

[MoIT (MBS/UNDP/UNIDO)]

- Dissemination of the NQP This activity has been completed.

- Development of a National Quality

Strategy (NQS) UNIDO took note of the efforts at National Level to:

o Work towards final editing and finalization of the NQS

that was prepared in 2015

o Progress in implementation with the plans of the MoIT

to nominate the high level committee in support of the

implementation of the NQS and ultimately the NQP, and

that such meeting of this committee is foreseen for the

second quarter.


(April 2016)

Page

10

1.1 Project Visibility event

This activity is a national implementation activity under the

MBS as provided for under activity 8.2

1.2 Review and set-up of

organizational structures, service

delivery procedures and

knowledge management within

MBS

[MBS (MoIT/UNDP)]

This activity is a national implementation activity under

MBS.

UNIDO took note that the process related to the handling o

the findings and recommendation from the Functional

Review remains slow but is being done at National level in

accordance with Government processes.

UNIDO further noted that MBS developed concept paper

and that an advertisement was placed to seek national

consultants to support the MBS in the process of

development of the MBS Strategy for 2016-2012.

It remains essential for the achievement of project

indicators and objectives for MBS to incorporate findings

and recommendations from the various international experts

into MBS Strategy and Business Plan and implement these

in order to ultimately achieve the anticipated reforms.

1.3 Market survey on the demand for

testing and calibration in Malawi

[MBS (UNDP)]


MBS.

UNIDO noted that the survey of the laboratory landscape of

Malawi to be implemented in terms of national

implementation modality remains in delay.

It was anticipated that the outcomes of this survey will

inform the implementation of act 6.9 related to industry

focused training in ISO17025 by international experts. As

these results are not yet forthcoming UNIDO will proceed

with act. 6.9 implementation in consideration of the

industry represented by the Laboratory Association of

Malawi.

1.4 Preparation of a business plan and

monitoring system for MBS

[MBS (UNIDO]

This activity is under national implementation by MBS.

UNIDO consulted with IE (Visser) regarding his availability

as provided for i.t.o. AWP2016 to participate in the MBS

Strategy for 2016-2012 process as commented on under act.

1.2. This in consideration of Visser’s work in both the

report on the MBS reform (act. 1.4, 1.5) as well as that

related to the NQS (act. 1.0)

Visser is however engaged under a one year contract to

SADC Secretariat in Gaborone but committed to support the

MBS strategic planning process provided he is timely

informed and subject to current contract priorities.

1.5 Development of a “marketing

unit” within MBS

[MBS (UNIDO]

This activity is under national implementation by MBS.

The report by Visser made clear recommendations on the

marketing strategy and require of MBS to formulate also a

marketing policy. It is also noted that the functional review

made positive recommendations about the MBS marketing

unit.

UNIDO stands ready to support the process should MBS

consider this necessary.

1.6 Enhancement and updating of the

MBS website

[MBS (UNDP)]

During

This activity is a national implementation activity.

UNIDO encourages MBS to ensure regular updating

thereof, including of implementation activities under this

project and to maintain hyperlinks to all project partners.

1.7 Preparation and implementation of

a “training plan” for MBS

[MBS (UNIDO]

Out-of-country trainings (testing):

o Training commenced in accordance with the agreed to

schedule of trainings at the International Food Safety

Training Laboratory (IFSTL) in USA.

o Arrangements are finalized for MBS officer Samson

Nyirenda to participate in the first course at IFSTL,


(April 2016)

Page

11

Methods of Determination for Pesticide Residues course

sheduled for 25 April – 4 May 2016.

o MBS also requests UNIDO that those training

requirements which IFSTL did not respond to be

considered at FERA, the National Reference Laboratory

in the UK. A detailed ToRs outlining these requirements

will be complied with the support of the CTA and

UNIDO will in turn engage FERA to obtain proposals.

Out-of-country trainings (metrology):

o (This action was completed in 2015)

Output 2: Technical Regulations reviewed to promote efficient, effective and

accountable delivery of information in accordance with SQAM legislation and

regulations ACTIVITY STATUS

2.1 Documentary and field survey of

the Malawian situation with regards to

technical regulations and

enforcement.

[MBS (UNDP/UNIDO)]

UNIDO component was concluded early in 2015 and

implementation of the various findings and

recommendations arising from the report by the

International Expert concerned (Nikonov), including of the

proposed strategy and implementation actions regarding

improved approach in formulation of technical regulations

using a risk-based approach requires deliberations amongst

national implementation partners.

UNIDO is informed that a meeting of the TBT Committee

under the MoIT will be called in the next quarter and

supported by the project to advance on this matter and

stands ready to provide continued support to the process.

2.2 Awareness campaigns and

training on "Better regulation".

[MBS (UNDP/UNIDO)]

2.3 Data gathering on TR, analysis

and consolidation.

Preparation of a strategy and a plan

for the institutionalisation of "Better

Regulation" in Malawi.

[MBS (UNDP/UNIDO)]

2.4 Preparation of a strategy and a

plan for the institutionalisation of

"Better Regulation" in Malawi

[MBS (UNDP/UNIDO)].

Output 3: Structurally enhances capacity of the Malawi Bureau of Standards for

conformity assessment services ACTIVITY STATUS

3.1a Construction of the Metrology

building.

[MBS (GoM)].

UNIDO received a late invitation to the ground breaking

ceremony presided over by the Malawi Vice President that

took place in January and which marks the official

commencement of the construction process.

The commitment by Government of Malawi to this

development is welcomed and UNIDO took note that

construction commenced during this quarter.

A provision under the MATCB project was made to support

the MBS request for a study tour for the engineering team

concerned with the design of the laboratory air conditioning

systems to NSBs in the region. At the time of this report

details are still being awaited from MBS to enable

arrangements to be made for this to happen.

http://ifstl.jifsan.umd.edu/catalogue/course/determinationPesticide


(April 2016)

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12

UNIDO will also respond to MBS request to engage home-

based technical assistance from international expert Ron

Cook to provide clarifications to various building

specifications as outlined in the original functional designs

prepared by him. This will also be done in terms of the

MATCB project

3.1b Develop within MBS an

accredited product certification body

[MBS (UNIDO/UNDP)]

Current implementation is in terms of the Pilot Phase for

MBS to be accredited to ISO/IEC 17065 as a product

certification body.

The final report by the International Expert (Shaukat H.

Malik) contracted by UNIDO to undertake a pre-assessment

during December of the ISO17065 quality management

system in view of the readiness thereof for accreditation

was circulated.

The report outlines that significant work remains for MBS

in continued development and implementation of the

system is required before accreditation can be achieved.

The report contains detailed information related to all the

missing/incomplete elements of the system, including

shortcomings matters related to internal auditing,

requirement to develop qualified auditors/lead auditors

(including training on ISO19011 Guidance on auditing

management systems, completion of documentation and

ensuring the system is implemented and all system records

are available.

A real concern is that there is no evidence of any work done

by MBS during this quarter to respond to the report

findings, for example for the documentation system to be

fully developed by March in view of the road map to

achieve accreditation by Dec. 2016.

It is evident that continued technical assistance is required

and MBS management need to provide leadership to the

QASD in this regard else the Dec. 2016 target will not be

achieved.

The IE is heavily engaged at present in UNIDO project in

Nigeria where five conformity assessment bodies are being

established. UNIDO proposes that a possible way forward

to support MBS could be for the project to support an

attachment of MBS officers to the Nigeria project to gain

from the work being done there and for the IE to oversee

the completion of the documentation management system.

If this is not considered feasible UNIDO advises that an IE

is contracted to work in continuous mode with MBS.

The allocation of funds for the eventual contracting by

UNIDO of the accreditation body is provided for in the IAA

amendment process which is ongoing at the time of this

report.

3.2 Develop within MBS a

management systems certification

body for ISO 9001 and ISO 22000 /

HACCP

[MBS (UNIDO/UNDP)]


MBS to be accredited to ISO/IEC 17021 for ISO9001

management system certification.

The final report by the International Expert (Shaukat H.

Malik) contracted by UNIDO to undertake a pre-assessment

during December of the ISO17021 quality management

system in view of the readiness thereof for accreditation

was circulated.

The report outlines that significant work remains for MBS

in continued development and implementation of the

system is required before accreditation can be achieved.


(April 2016)

Page

13

The report contains detailed information related to all the

missing/incomplete elements of the system, including

shortcomings matters related to internal auditing,

requirement to develop qualified auditors/lead auditors

(including training on ISO19011 Guidance on auditing

management systems, filling of vacancies, committee

structures, completion of documentation and ensuring the

system is implemented and all system records are available.

The changes to the ISO9001 standard with the introduction

late in 2015 of the new version of the standard will also

require certain changes and considerations to the ISO17021

system being developed at MBS. A bridging course for

MBS officers between the ISO9001:2008 version and the

new version is required; this training could most efficiently

be implemented i.t.o. Output 6 as part of the assignment of

the IE to provide training and technical assistance to

industry of the ISO9001 system.

A real concern is that there is no evidence of any work done

by MBS during this quarter to respond to the report

findings, for example for the documentation system to be

fully developed by March in view of the road map to

achieve accreditation by Dec. 2016.

It is evident that continued technical assistance is required

and MBS management need to provide leadership to the

QASD in this regard else the Dec. 2016 target will not be

achieved.

The IE is heavily engaged at present in UNIDO project in

Nigeria where five conformity assessment bodies are being

established. UNIDO proposes that a possible way forward

to support MBS could be for the project to support an

attachment of MBS officers to the Nigeria project to gain

from the work being done there and for the IE to oversee

the completion of the documentation management system.

If this is not considered feasible UNIDO advises that an IE

is contracted to work in continuous mode with MBS.




report.

3.3 Upgraded and accredited testing

laboratories in MBS

[MBS (UNIDO)]


MBS to be accredited to ISO/IEC 17025 with scope limited

to microbiology, pesticides, elements analysis, and food

contaminants (e.g. aflatoxins).

The technical assistance to MBS through International

Expert in matters related to the development and

implementation of the ISO17025 management system was a

key matter discussed with MBS this quarter. Indications are

positive that MBS Management would resolve internal

discussions related to this technical assistance and that

UNIDO will be in position during the next quarter to

contract an expert.

The training related to the software use and operation of the

High-Performance Liquid Chromatograph (HPLC) was

completed this quarter and the system is now fully

operational and in use.

The set of Certified Reference Materials (CRMs) were

delivered and these provide now for MBS traceability for

various testing methods and the means to undertake method


(April 2016)

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validation for a large number of testing procedures.

The Automated Atmospheric Distillation Analyzer was

delivered and commissioned and MBS officers were

trained. This provides an important testing capability in

Malawi to analyze distillation trend of fuels for the

petroleum industry.

Other items procured and in advanced stage of shipment to

MBS by the respective suppliers are:

o PO 3000031176 issued to Enkay Enterprises for supply

and installation of a Universal Testing Machine for

testing of various strength properties of materials,

specifically high-capacity tension, compression,

bend/flex, and shear testing through;

o PO 3000031222 issued to Anatech Instruments for

supply and installation of a High Pressure Capillary Ion

Chromatograph to be used for routine testing and

primarily for the enhanced determination of anions such

as Nitrates, Phosphates, Sulphates, Fluorides and many

others in different types of water.




report.

3.4 Upgraded and accredited

calibration laboratories in MBS


MBS to be accredited to ISO/IEC 17025 with scope limited

to mass, volume and dimension (length) being implemented

in close collaboration with the MATCB project.

The construction works at the Metrology Services

Department where such works provide for (a) a dedicated

heavy mass and large volume laboratory and storage

facility, and (b) upgrading of the laboratory environment

and air conditioning systems of the existing MSD facilities

is at an advanced stage and target date for handover of these

facilities to MBS is 20 May 2016. These works and

upgrading is essential to also the SQAM project objectives

and ensuring an environment conducive for eventual

accreditation of calibration services.

During the quarter the mass metrology equipment was

delivered, these being:

o A calibrated class F2 weight set (1 mg -20 kg);

o Calibrated mass comparators (balances):

o Balance of 200g capacity (x1),

o Balances of 520 g capacity (x2);

o Laptop computers to be used for the analysis of data

during laboratory and on-site calibrations;

o Digital thermometer-hygrometer (x5) to allow for

monitoring of laboratory environmental conditions.

Installation and commissioning will be done in May in the

refurbished MSD facilities.




report.

3.5 Develop a training business unit.

[MBS (UNIDO)] UNIDO took note that initial actions as provided for in the

AWP2016 for MBS to do a survey of the training needs and

opportunities in industry was not yet done.


(April 2016)

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15

The action for UNIDO to field an expert to support MBS in

systems related to the training course offered by MBS will

most likely only be done in quarters 3 and will be a next

actions once the initial work under national implementation

modality has been accomplished.

3.6 Establish a pool of Malawian

auditors

[MBS (UNIDO)]

This activity provides for technical assistance to MBS in the

development of processes and system to support the

management of a pool of auditors where such auditors are

integral to conformity assessment services earmarked for

accreditation.

Implementation by UNIDO of this action is scheduled for

the second half of 2016.

3.7 Collaboration with the Malawi

Laboratory Association to strengthen

the association as an integral part of

the national quality infrastructure,

notably in view of testing and

calibration services

[MBS (UNDP)]


MBS as was concluded during 2014.

Output 4: Strengthened, proactive and responsive National Enquiry Points (NEP) to

the information and notification requirements of WTO/TBT/SPS agreements ACTIVITY STATUS

4.1 Identify, store, update, create and

use the information on foreign TR,

standards and conformity assessment

dispositions of countries that import

from Malawi

[MBS (UNIDO)]

UNIDO component was concluded early in 2015 and

implementation of the various findings and

recommendations arising from the report by the

International Expert concerned (Sierra) towards the

compliance by Malawi with the WTO transparency

provisions of the three National Enquiry Points for SPS and

the National Notification Authority is now required under

national implementation responsibility. The specific

responsibilities go beyond only the MBS, as outlined:

o Food Safety [Malawi Bureau of Standards, Blantyre]

o Animal Health [Ministry of Agriculture, Dept. Animal

Health and Livestock, Lilongwe]

o Plant Protection [Ministry of Agriculture, Dept. Agric.

Research Services, Lilongwe]

o The National Notification Authority [Ministry of

Industry and Trade, Lilongwe]

UNIDO stands ready to provide continued support to the

process.

Output 5: Sanitary and Phytosanitary (SPS) infrastructure improved and

mainstreamed into National policies ACTIVITY STATUS

5.1 Review the national SPS

infrastructure

[MBS (UNIDO)]

The draft report and supporting food safety legislative

framework in follow up to the mission by the team of

experts from the Food and Agricultural Organization of the

UN (FAO) undertaken during November is being prepared

by FAO and will be circulated once received.

Initial feedback from FAO outline that key challenges for

Malawi in matters concerning food safety are (i) to resolve

the institutional arrangement related to the effective

5.2 Develop a road map to improve

the Malawian SPS infrastructure.

[MBS (UNIDO)]

5.3 Review and upgrade the

legislation for the SPS infrastructure


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16

[MBS (UNIDO)] administration of a Food Safety Law and (ii) for the law to

be informed by a Food Safety Policy.

The specific objective of this work by FAO is to support the

development of draft primary legislation for food safety

control in Malawi, aligned with international standards and

requirements that sets out an institutional framework for

food safety control appropriate to the needs of Malawi, and

reflects its regional trade arrangements (COMESA, SADC

etc.).

Output 6: Capacity of Small and Medium sized Enterprises (SME), and particularly

women and youth led enterprises, strengthened to comply with quality requirements ACTIVITY STATUS

6.1 Preparation of an overall training

and technical assistance programme

for SMEs, in particular female and

youth headed SMEs.

[MBS (UNDP/MoIT)]

Programme implementation related to the 7 Cohort I

companies to benefit from technical assistance through

international experts for ISO9001 and ISO2200 quality

management systems commenced in accordance with the

AWP2016 and as reported under act. 6.2, 6.3, 6.5 and 6.6.

UNIDO is still however awaiting final decisions under

national implementation modality related to:

o The list of Cohort II companies which applied for

assistance to MBS during the 2015 process to also

benefit from ISO9001 and ISO22000 assistance

o Consensus at national level of the value chains in

accordance with the National Export Strategy (NES) to

benefit from technical assistance.

The AWP2016 is clear on the above inputs and the

requirement for this to have been concluded by the end of

this reporting period (quarter 1). UNIDO implementation

beyond Cohort I actions cannot commence if these inputs

are not forthcoming.

6.2 Technical assistance to 15 SMEs,

in particular female and youth headed

SMEs, to comply with HACCP /

ISO 22000 Food safety management

systems

[MBS (UNIDO)]

The inception mission of the IE (Anya Knoetze) contracted

by UNIDO to lead the ISO22000 and HACCP technical

assistance commenced this quarter with in-country

component scheduled for 28 March – 9 April 2016.

The inception mission provide for:

o Visits to each of the 3x Cohort I companies where

assistance in the implementation of ISO22000 is

required. This is required for the IE to do an initial

evaluation of the current status of compliance with the

standard and to inform the future work programme.

These companies are:

Nali Limited (Thyolo)

Linga Wines (Lilongwe)

Katete Diaries (Lilongwe)

o A 5 day course on ISO22000 and aspects of HACCP to

the representatives of these companies.

The report from the IE will inform the manner in which the

remainder of the programme need to be structured for these

companies to eventually be ISO22000 certified.

6.3 Technical assistance to 10 SMEs,

in particular female and youth headed

SMEs, to comply with ISO 9001

Quality management systems.

[MBS (UNIDO)]

The inception mission of the IE identified to lead the

ISO9001 technical assistance programme will be

implemented during the next quarter. The focus will be on

those 4x Cohort I companies selected to be supported in

implementation of ISO9001.

It was further agreed with MBS that the IE would also offer

a bridging course to MBS officers on the changes between


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17

the 2008 and 2015 versions of the ISO9001 standard. (ref.

act. 3.2).

6.4 Other type of quality requirements

in export markets. Technical

assistance to 10 SMEs.

[MBS (UNIDO)]

Implementation by is planned for quarters 2 and 3 in

accordance with the AWP2016.

6.5 Trainers-cum-counsellors and

auditors: Training in HACCP / ISO

22000 Food safety management

systems.

[MBS (UNIDO)]

The first training course over 5 days will be offered by the

IE (Anya Knoetze) contracted by UNIDO to lead the

ISO22000 and HACCP technical assistance activity (ref.

6.2) and was confirmed to take place during her mission 28

March – 9 April 2016.

The participants will be the 18 individuals nominated by the

MBS.

It is important to note that there is a lack of expertise

especially in the SME sector of the ISO22000 and HACCP

standards and this lack of expertise is clearly evident in the

limited experience of these nominees. This reinforces

however the rationale for the project to undertake these

trainings amongst the SME community.

It is realistic to expect that only a small number of the

candidates will eventually be able to make the transition to

become trainers/counselors and eventually progress to

auditors.

6.6 Training in ISO 9001 Quality

management systems for trainers-

cum-counsellors and auditors.

[MBS (UNIDO)]

To be combined with a mission of the expert to be fielded in

act. 6.3.

6.7 Trainers-cum-counsellors:

Training in "Initiating quality

improvement in selected sectors"

[MBS (UNIDO)]

Implementation by is planned for 2017 (AWP2016).

6.8 Awareness seminars: ISO 14000

Environment management systems;

GLOBALG.A.P. (Good Agricultural

Practice)

[MBS (UNIDO)]

Implementation by is planned for quarter 4 (AWP2016).

6.9 Trainers-cum-counsellors and

auditors: Training in ISO/IEC 17025

[MBS (UNIDO)]

The AWP2016 provides for this training to coincide with

World Accreditation Day (9 June 2016).

MBS recommendation is that the main participants be

drawn from those companies that form the membership of

the Laboratory Association of Malawi as these companies

all subscribe to the goals of ISO17025.

UNIDO commenced the process of identification of IEs to

undertake this training, foreseen as a 5 day course.

Output 7: MBS Compliant with International Regulations established ACTIVITY STATUS

7.1 TA for the preparation of the

organizational ad operational bylaws

and business plan for the Malawian

accreditation body.

[MBS (UNIDO)]

Activity was concluded in 2015.

Output 8: Programme Management ACTIVITY STATUS

8.1 Operational Management Team Provides for International Technical Assistance and


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related costs, including the project CTA and UNIDO

travel and the contracts of the CTA and junior consultant

at UNIDO.


(April 2016)

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19

C. Financial Status and Utilization

A first installment of EUR 550,000 (equivalent to USD 717,079.53) was received

from the UNDP on 28 October 2013 in accordance with the schedule of payment of

the inter-agency agreement. At the end of March 2014 financial implementation by

UNIDO was reported as 83% allowing for request for the next disbursement of funds.

The next installment from UNDP to UNIDO, an amount of EUR 1,009,728

(equivalent to USD 1,199,074.47) was received on 10 October 2014.

Financial expenditure for the quarter in terms of eligible costs amounts to USD

94,219.69 as per inputs received by UNIDO’s Financial Management of Technical

Cooperation Unit) bringing the total financial expenditure to USD 1,790,940.77 (also

refer to table in Annex 2)2.

A third installment of EUR 781,784 was requested by UNIDO on 8 December, 2015.

Letter of acknowledgement was received on 6 January, 2016 indicating that despite

request, a prompt transfer of funds is not possible. To date, UNIDO is still awaiting

the transfer of this third instalment. It is vital in nature, as UNIDO funds are almost

depleted, and as such is having a negative impact on UNIDO’s ability to ensure

implementation in accordance with the AWP2016 planning.

This amounts to 89% of financial implementation by the end of the quarter, of total

funds received (installment 1 + installment 2).

60,000 of the 80,000 USD under Output 3, which was allocated to UNDP at the onset,

has been re-allocated to UNIDO in the 2016 AWP. Letters with regards to this subject

matter have been exchanged between UNIDO and UNDP noting the need for this to

be reflected in the amendment of the IAA in order for these funds to be made

effective by UNIDO.

Furthermore, given the agreement in principle during the AWP planning session and

allocation in the AWP 2016 of funds for UNIDO mission travel, contingency

allocation is required to provide for this, for which donor’s approval is required.

Considering the number of already occurred missions as well as those foreseen,

amendment of the IAA to allow for utilization of funds is imperative. This matter will

be also considered in the forthcoming amendment of the IAA.

While the 24 month extension as requested by MBS is considered an overall no-cost

extension to the European Union, additional funds3 amounting USD 172,000 are

required by UNIDO in order to sustain the project operations for the extended period

between May 2016 and May 2018, on top of USD 60,000 from current contingency

funds. Agreement was reached between UNIDO and the UNDP during Q3 2015

quarter for these funds to be reallocated from UNDP to UNIDO budget in the context

2 The financial information at the date of this report is regarded as preliminary, this in consideration of

the IAA provision for UNIDO to submitted the final financial report by 31 July 2015. 3 Amount stated in USD to be determined and agreed to in EUR equivalent at the time of such

allocation


(April 2016)

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20

of the IAA amendment; this accommodated as result of savings incurred in the

implementation of Output 8 and the project contingency. Having obtained the 24

month extension, amendment of the IAA is required with the approval by the EU as

donor accepting the agreement to use the contingency funds as negotiated with

UNDP.


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21

D. Lessons Learned

The quarter highlighted the importance of continuity and monitoring especially in

relation to:

Findings obtained by International Expert (Shaukat) indicating follow up is

essential in nature on part of National Implementation which could eventually

lead to accreditation of ISO17021 and ISO17065 by December 2016 should

recommendations be followed and continued actions and dedicated monitoring

be put in motion. The mission demonstrated the value to MBS Management of

a pre-assessment by an IE as the report and findings give detailed information

related to the status of implementation and gaps. It is however essential for

MBS, management and officers concerned with the implementation of these

systems to internalize the report and to act on these actions.

MBS was advised to ensure appropriate measures are taken to protect all

equipment, especially the new equipment procured, against surge protection

following observations of the poor quality of supply.

National implementation continues to post a challenge, considering slow

actions can lead to delayed implementation on UNIDO side (eg. limited

advances with Outputs 3.1(b) and 3.2 ISO17021 and ISO17065 documentation

systems, and no progress regarding Output 6 Cohort II companies and value

chain selection.).

Next instalment was requested by UNIDO first week of December 2016, to

date, UNIDO is still awaiting its replenishment. It is important to consider for

future (especially when deciding the new schedule of payments to be quoted in

amended inter agency agreement).

Furthermore, with relation to UNIDO reporting:

It is important to standardize methods, process, tools, techniques, checklists to

ensure everyone has access to the same overview as a lack of overview of the

(financial) process between stakeholders may create discrepancies.

Given exhaustion of permissible funds for travel, and despite verbal agreement

that IAA will include an increase of limits, ad hoc planning continues to prove

challenging as UNIDO is only able to participate in events with very early

notice given HQ-internal approval procedures.

Upon finalization of AWP2016 session, issue of timing was discussed where

after it was suggested that a longer lead period be observed between the

Annual Work Planning session and the subsequent Steering Committee

Meeting held, however, extending the period between the two events could

endanger UNIDO participation and more careful planning


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22

E. Conclusion

The report elaborated on the delivery of equipment procured as per approved

procurement plan. Fielding of International Expert under Output 6 to provide

technical assistance in the implementation of ISO22000 Quality Management

Systems (QMS) was concluded, yet mission will take place in Q2 2016.

A concern which surfaced during the Annual Work Planning Session 2016 in

Blantyre, Malawi was that the financial expenditure threshold has been met by

UNIDO and despite the next installment having been requested on December 8, 2015,

the transfer of funds are experiencing delays which could in turn affect project

implementation.

The various administrative processes related to the formal approval and signing of the

AWP2016 as adopted during the meeting of the SC during December need to be

concluded by parties concerned as matter of priority for implementation to commence

in 2016 as anticipated. It is important to note that, almost without exception, National

Implementation actions under the responsibility of the MBS need to be initiated in

parallel or in lead-up to UNIDO actions. As such, care need to be taken to ensure

provisions and resources are appropriate and actions timely taken at National level for

the UNIDO implementation to advance.


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F. Future Work Plan

The key activities from the AWP2016 for implementation by UNIDO in the next

quarter include:

Output 1:

- Activities 1.7 Preparation and implementation of a training plan for MBS; the

out-of-country training for officers in the Testing Services Department will

continue according to the course schedule. This training is being undertaken at the

International Food Safety Training Laboratory in the United States of America.

Output 2:

- UNIDO activities are concluded in terms of this Output.

- It is now essential that the National Implementation activities are initiated in order

to ensure the desired results under this output are achieved.

Output 3:

- UNDP and UNIDO will formulate the amendment to the IAA regarding the

funding allocations for procurement of the services of international accreditation

services.

- Activities 3.1b Develop within MBS an accredited product certification body and

3.2 Develop within MBS a management systems certification body. UNIDO noted

that there has been very little progress since the detailed report following the pre-

assessment of the MBS ISO/IEC 17065 and ISO/IEC 17021 quality management

systems. It is essential for MBS to act and address these to ensure the

accreditation objectives will eventually be met. UNIDO will explore possibilities

with MBS to field additional TA or arrange for attachment of MBS officers to

ensure the completion of system documentation.

- Activities 3.3 Upgrade and accredited testing laboratories in MBS and

3.4 Upgrade and accredited calibration laboratories in MBS:

o UNIDO hopes to receive final inputs from MBS regarding the process to

recruit an international expert for technical assistance/pre-assessment of the

ISO/IEC 17025 system of the TSD.

- Delivery and installation of the Universal Testing Machine and of the Ion-

Chromatograph is expected this next quarter. The commissioning of the mass

metrology equipment will also be done.

Output 4:

- UNIDO activities are concluded in terms of this Output.

- It is now essential that the National Implementation activities are initiated in order

to ensure the desired results under this output are achieved.

Output 5:

- The report from the FAO on findings and recommendations arising from the Q4,

2015 missions will be received and this will inform the next actions for this

component. It is realistic to expect that a next action will be the validation

workshop.


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Output 6:

- International expert recruited to undertake following activities:

6.2 Technical assistance to SMEs, in particular female and youth headed SMEs, to

comply with HACCP / ISO 22000 Food safety management systems (Objective,

Cohort I)

6.5 Trainers-cum-counsellors and auditors: Training in HACCP / ISO 22000 Food

safety management systems.

This assignment is an inception mission where the expert will conduct a training

course on ISO22000, evaluate the current level of implementation of the particular

QMS at the companies and agree on a plan of action with each company for the

eventual completion of implementation of the system. It is foreseen that the

inception mission will be supported by further missions in accordance with the

plan of action.

o The technical assistance programme for ISO9001 will commence with the

inception mission and the training off the trainers/counselors.

o The ISO17025 training course will be arranged to coincide with World

Accreditation Day (9 June 2016).

Output 8:

Activity 8.1 Operational Management Team; UNIDO will continue to provide

international technical assistance through the oversight of the work of the CTA and

junior consultant as provided for under UNIDO responsibility

Annexes: 1. Annex 1: Expenditure as reported and accepted by UNDP HQ (UNEX). First

Quarter of 2016 (Jan-Mar) expenditures were not accepted by UNDP HQ as

these were unfortunately submitted past the reporting deadline. Thus, Q1 2016

expenditures reflected 0 USD and will be submitted with Q2 figures.

2. Annex 2: Expenditure comprising Obligations + Disbursements to date. These

figures are available in PDR’s shared with UNDP Malawi office.

Interim Report (Oct-Nov 2015)

Draft (November 2015)

Development of a Robust SQAM Infrastructure in Malawi Project

OUTPUT USD ($) USD ($) USD ($)

January - March 2016

QUARTERLY EXPENDITURE

TOTAL EXPENDITURE AS AT PREVIOUS

QUARTERTOTAL EXPENDITURE

Output 1: Increased efficiency and sustainability of the

Malawi Bureau of Standards- 138,836.45 138,836.45

Output 2: Better technical regulations - Support to the

reviews and development of technical regulations- 38,263.83 38,263.83

Output 3: Enhancement of the Malawi Bureau of Standards

capacity- 430,813.71 430,813.71

Output 4: Enhanced Capacity of National Enquiry Points

(NEP). Proactive and responsive NEP to info and notification

requirements of WTO/TBT/SPS agreements

- 14,074.71 14,074.71

Output 5: Strengthened Sanitary and Phytosanitary

infrastructure- -

Output 6: Small and Medium Enterprise (SME) meet quality

requirements- -

Output 7: Preparation of the organisational and operational

internal by-laws and business plan for a national Malawian

Accreditation body

- - -

Output 8: Operational Management Team (operation costs

and visibility)- 408,224.42 408,224.42

SUB-Total Project Direct Eligible Costs (EXCLUDING CONT) - 1,030,213.12 1,030,213.12

CONT (2.75%) - has to be ≤ 5% -

SUB-total Project Direct Eligible Costs (INCLUDING

contingency)-

Output 1 Support Costs - 11,736.94 11,736.94




Output 6 Support Costs - -


Indirect Costs (GMS 7%): Administrative Costs has to be ≤ 7%

of Direct Eligible Costs- 111,000.34 111,000.34

GRAND TOTAL (Including contingency) - 1,141,213.46 1,141,213.46

ANNEX 1

Interim Report (Oct-Nov 2015)

Draft (November 2015)

Development of a Robust SQAM Infrastructure in Malawi Project

OUTPUT USD ($) USD ($) USD ($)

January - March 2016

QUARTERLY EXPENDITURE

TOTAL EXPENDITURE AS AT PREVIOUS

QUARTERTOTAL EXPENDITURE

Output 1: Increased efficiency and sustainability of the

Malawi Bureau of Standards 5,325.95167,670.75 172,996.70

Output 2: Better technical regulations - Support to the

reviews and development of technical regulations- 38,263.83 38,263.83

Output 3: Enhancement of the Malawi Bureau of Standards

capacity- 926,802.57 926,802.57

Output 4: Enhanced Capacity of National Enquiry Points

(NEP). Proactive and responsive NEP to info and notification

requirements of WTO/TBT/SPS agreements

- 14,074.71 14,074.71

Output 5: Strengthened Sanitary and Phytosanitary

infrastructure- - -

Output 6: Small and Medium Enterprise (SME) meet quality

requirements 11,246.00- 11,246.00

Output 7: Preparation of the organisational and operational

internal by-laws and business plan for a national Malawian

Accreditation body

- - -

Output 8: Operational Management Team (operation costs

and visibility) 71,483.86431,341.13 502,824.99

SUB-Total Project Direct Eligible Costs (EXCLUDING CONT) 88,055.81 1,578,152.99 1,666,208.80

CONT (2.75%) - has to be ≤ 5% -

SUB-total Project Direct Eligible Costs (INCLUDING

contingency)

Output 1 Support Costs 372.79 11,736.94 12,109.73



Output 4 Support Costs 787.22 985.23 1,772.45

Output 6 Support Costs - - -

Output 8 Support Costs 5,003.87 30,193.88 35,197.75

Indirect Costs (GMS 7%): Administrative Costs has to be ≤ 7%

of Direct Eligible Costs 6,163.88118,568.09 124,731.97

GRAND TOTAL (Including contingency) 94,219.69 1,696,721.08 1,790,940.77

ANNEX 2

quarterly progress report - united nations development

Documents