usaf development framework (crc dar11)

Stages of USAF Development and Operations

David N. Townsend

USAID/GBi Program on Universal Service and Access Fund Development

CTO Connecting Rural Communities Africa Forum 2011

August 26, 2011 Dar Es Salaam

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Enabling Legislation

Collections and Accounting

Institutional Framework

Market Assessment, Gap Analysis

Strategic Plan

Organizational and Business Plan

Operating Procedures and Plans

Project Design, Award, Implementation

Monitoring and Evaluation

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1. Enabling Legislation:• USAF should be established

according to clear legislative mandate, which defines legal authorization, objectives, etc.

• Key provisions should include: Formal establishment and authorization of the Fund

Definition of Fund contribution obligations (not necessarily exact amounts, which may be determined by later rulings)

General objectives, targets, priorities for Fund support Institutional framework, authorization, governance Implementation steps, milestones, time frames



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2. Institutional Framework:• Fund must be established under an

institutional framework that determines basic structure, control, management, and oversight.

• Key features include: Organizational setting (e.g., within Regulator, Ministry, or

separate institution) Source and amounts of administrative budget (distinct from

Fund Project budget) Assignment of top management (e.g., Director General), as

well as governance structure (Board of Directors) Authorization for hiring staff, commencing operations




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3. Collections and Accounting:• USAF administrations must

establish mechanisms and procedures for collecting income as well as adequateaccounting and financial controls.

• Collections procedures include: Defining precise amount, formula for required contributions Timing and method of contributions Verification and enforcement procedures

• Accounting requirements include: Establishment, maintenance of financial accounts

Transparent accounting of all income, expenditures, including public (on-line) access to information

Independent audits of accounts


Collections and Accounting


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4. Market Assessment, Gap Analysis:

• USAF must initially evaluate the current status of target markets to determine priority needs, goals, options. Identify scope of current service access, usage Obtain data from operators on coverage, plans, costs, etc.

• A Gap Analysis can help determine costs, priorities Distinction between Market and Access gap

Estimates Fund support requirements for different locations, services

• Fund should maintain a comprehensive Database of market conditions, regularly updated.



Market Assessment, Gap Analysis

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5. Strategic Plan:• Defines the near-term targets,

priorities, and Fund allocations to guide operations based on objectives, resources

• Identifies broad Programs for Fund support, and anticipated Projects to be undertaken within each: Programs focus on a category of objectives, e.g., voice

telephone coverage, public telecenters, ICT in schools.

Projects are individual initiatives within a Program, targeting specific geographic areas, for example.

Most Programs will consist of multiple Projects over several years to achieve universal goals.

• Budget Forecasts: Plan estimates expected Fund resources and allocates budget acrossprospective programs and projects.


Strategic Plan

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6. Organizational and Business Plan:

• Provides internal structure and planning framework for administration of the Fund.

• Organizational Plan defines the structure and scope of the Fund administration: Organizational chart, lines of authority Personnel positions, job descriptions Provisions for public relations, transparency (e.g.,

website)

• Business Plan defines internal budget and resource requirements: Personnel salaries, benefits Equipment, technical, logistical resources Outside support, contracting


Strategic Plan

Organizational and Business Plan

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7. Operating Procedures and Plans:

• Operating Procedures define rolesand functions for implementingStrategic Plan, by means of detailedOperating Plans

• Operating Procedures include: Data collection, market analysis

Strategic and operational planning, including criteria and methods for choosing priority projects

Project design, award, and implementation

Requirements for public consultation, transparency, competitive fairness, etc.


Strategic Plan


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7. Operating Procedures and Plans (cont.):

• Operating Plans define specifictargets and projects over a given period (1-2 years): Parameters of projects to be undertaken

(scope, locations, budgets, time frames)

Quantifiable targets to be achieved

Staff assignments

Review and reconciliation of budgets, ongoing projects, in context of Strategic Plan


Strategic Plan


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8. Project Design, Award,Implementation:

• Fund-supported projects should be consistent with overall objectivesand parameters of Strategic and Operating Plans.

• Project Design determines the precise scope, targets, and mandatory specifications of a project. Should be developed in consultation with both community

and industry stakeholders Requires needs assessment, local market analysis, and

business case Spec’s should be largely technology-neutral, based on

end-services or facilities to be delivered

• Project Award should typically involve an open, competitive process “Reverse auctions” or a combination of price and

qualitative measures, subject to minimum compliance



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8. Project Design, Award,Implementation (cont):

• Project Implementation requires execution of clear contract terms andconditions for Fund disbursements Selected contractor must be capable of implementing

required services according to schedule USAF project team works with contractor to ensure timely

and adequate deployment, resolve uncertainties Disbursements over time, based upon achieving verifiable

milestones



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9. Monitoring and Evaluation:• USAF admins must ensure that

funds are properly utilized and operators comply contractual agreements. They should also monitor effectiveness and impacts of projects.

• Monitoring of project implementation to verify compliance On-site inspections, plus surveys of local users Subsidy payments tied to verified service delivery Sanctions and procedures for non-compliance

• Evaluation of impacts should feed into revisions to project and strategic plans Cost-effectiveness of projects Socio-economic impacts, user responses Fund Annual Report



Monitoring and Evaluation