Sustainable Economic Development of the Sudurnes region, Iceland

Preparation of Project Proposals‘The project fiche’

JOSE MATEOS MORENO

Ásbrú, January 2012

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1. Preparation of the project application form

2. Activity and resource planning

Contents

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1. Project Design

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Project Design: definition of a Project

• Economically indivisible series of activities for a precise technical function

• Identified outputs and objectives• Clearly defined beginning and end• A programme is a heterogeneous group of

measures and projects

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Elements of project design

• Why: the problem or need and wider objectives• What: activities, results and project purpose• How: internal and diagonal logic:

- Indicators for monitoring and evaluation- Risk analysis and assumptions- Preconditions- Finance: costs and co-financing- Implementation schedule

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Project Design: TasksResponsibilities of Final Beneficiary:• Designing of project proposals and submitting them

to IBs

Responsibilities of Lead Ministry (Sectoral Offices):

• Compliance with the sectoral strategic documents • Verifies technical quality of the project proposal • Verifies if the project proposal meets the eligibility

criteria for IPA measures • Ensures the national financial contribution for the

project

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The project application procedure should:

• Promote high quality project preparation• Asess if EU principles are met (horizontal

issues)• Check for availibility of all necessary

documents (feasibility studies, EIA, permits etc)

• Show main results of EIA and feasibility/CBA studies

• The format (project fiche or application form) is a tool for uniform communication of relevant key project information

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Elements of a project proposal ‘Project fiche’

1) Basic information 2) Objectives 3) Description4) Institutional Framework5) Detailed Budget6) Implementation Arrangements7) Implementation Schedule8) Cross cutting issues

1) Equal Opportunity 2) Environment

9) Rates of Return10) Investment Criteria11) Conditionality and Sequencing

Annexes: Logframe, implementation chart, contracting and disbursement schedule, list of preparation studies, laws, plans.

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Activities in Project Design

A. Information gathering for the problem analysis and the elements of project design

B. Deciding the scale and scope of the project

C. Assembling the project design elements

D. Filling in the project proposal (fiche)

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A) Information gathering

– Outcome of previous projects / gaps– Linked or other relevant activities– Views of potential beneficiaries / recipients– Monitoring/evaluation recommendations– OPs and any other government strategies or plans– Financial information – national funds available– Statistics available for Indicators of Achievement– Gender information– Institutional ‘audit’ of staffing / capacity / resources– Environmental Impact Assessment (EIA) / feasibility

studies (CBA) – Material for Fiche annexes

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B) Deciding the scope and scale

Scope: type of activities to include should depend on:

- type of needs/problems- cost/feasibility issues- dependency of success on specific activities

Size (capacity) of the project should depend on:

- market demand/need for the services of the project (feasibility study)

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C) The project design elements and logframe

D) Filling in the project fiche

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The logic of project design

Needs/Problems (t)

Overall objective

Project purpose Expected results

Input

Activity

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• Briefly explain the origins of the project and outline why it is being undertaken

• Problem or need analysis: causes of the problems and size of the problem

Example: High level of unemployment because of low economic activity

1. Why: Start with problem or need identification

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2. Objectives: Overall objective

• The Overall Objective should explain why the project is important to society, in terms of the longer-term benefits to beneficiaries and the wider benefits to other groups.

• The Overall Objective will not be achieved by the project alone, but will require the impacts of other programmes and projects (and probably other actions) as well.

• Example: to improve business environment in a region

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2. Objectives: Project Purpose

The single central objective of the project in terms of sustainable benefits to be delivered to the project beneficiaries.

• Example: to improve business infrastructure for new start-ups.

• To improve tourist infrastructure in a region.

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3a. Results

Results impact and sustainability

What is achieved what changes

what lasts

The results are what the project management is responsible for achieving by its completion date.

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3b. Activities

• The specific tasks to be undertaken during a project’s life to obtain results.

Activities should indicate:• what the person or organisation

responsible for the project should do.• how the project’s goods and services will

be delivered

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3c. Indicators

Measurable indicators that will show whether or not objectives have been achieved at each level of the logframe hierarchy and at defined times

Indicators provide the basis for designing an appropriate monitoring (and evaluation) system

Sources of Verification: the means by which the indicators or milestones will be recorded and made available to project management or those evaluating project performance.

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Risks & assumptions and Pre-conditionsRisks: factors which could affect the progress or

success of the project

In LFA: risks should always be expressed as assumptions

Risk analysis and risk management strategy for larger projects

Pre-conditions: constraints that have to be met before the project starts

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4. Institutional Arrangements

• Institutional framework within which the project will operate.

• Identify any constraints or changes that can have impact on results

• Chain of command• (a) who will be appointed as the "Engineer“• (b) who will be the "Employer" — the institution

responsible for providing the site and for paying the contractor

• (c) who will be or become "Owner" of the asset after project completion

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5. Detailed Budget

• Budget: estimation of investment costs• Clarify the cost estimation• Maintenance costs are not covered by EU

funds: make reservation in national budget• Specify co-financing of national budget,

municipalities, loans etc. (column funding source in resource schedule)

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6. Implementation arrangements

• Implementing agency of the project (details)

• Contracting parties

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7. Implementation schedule

A) Start of tendering/call for proposalsGive date, including when TORs and/or project specifications will be ready

B) Start of project activity

Expected date of commencement of first contract/grant scheme

C) Project completion

Expected date of last payment under last contract/grant

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Project Fiche – Step by Step

• Following the standard Project Fiche format – contained in an Annex to the Phare / Pre-Accession Instrument 2005 Programming Guide– Note: the format is very similar to Phare

2004– Fiche format can be found just after blue tab

(Day 1) in the training manual

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Project Fiche

• Introduction - Phare 2005 Project Fiche Format • Period 2005-07: multi-annual PF for Economic

and Social Cohesion (ESC) investments and for Institution Building (IB) and associated investment (if feasible)

• PF can be for:– Stand-alone projects– Sectoral / sub-sectoral projects– Single-year / multi-annual projects

• PF has several annexes including: list of laws, list of relevant strategic plans and studies

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Project Fiche

• 1 Basic Information (using PF numbering system)

• 1.1 CRIS Number – allocated after FP registered

• 1.2 Title – accurate, few words & full meaning!• 1.3 Sector – to be defined by DG ENLARG• 1.4 Location

– country/region/city for investment project – Institutional location for IB project

• 1.5 Duration

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Project Fiche

2 Objectives

2.1 Overall Objective(s)• Normally only one overall objective • Take from Logframe• Overall objective should explain why project

is important to society and refer to longer term benefits. Remember: the project will only partially achieve the overall objective.

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Project Fiche

2.2 Project Purpose• From logframe• Normally one purpose per project• Project purpose is the single central objective

of the project.

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Project Fiche

2.3 Accession Partnership (AP) & NPAA Priority• Need to identify and outline AP/NPAA policy

priority addressed by project• Include implementing measures from Action

Plan for AP priorities related to strengthening administrative and judicial capacity

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Project Fiche

2.4 Contribution to NDP (and/or Structural Funds Dev Plan)

• Normally applies to ESC projects only• Show relevant parts of NDP/SFDP and

project contribution

2.5 Cross Border Impact • CBC projects only• “Impact” = what changes as result of project• Write “not applicable” if not a CBC project

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Project Fiche

3 Description• Provide clear picture of the use of funding

sought

3.1 Background and Justification• Clarify Civil Society involvement and

consultation• Stand-Alone Project – project origins and

reasons• Sector Programmes – show link with

government sector strategy & concentrate on legislative / administrative deficiencies

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Project Fiche

3.2 Sectoral Rationale (sector programmes only)• Summarise how Govt strategy helps achieve overall

objective• Describe how EU project will be programmed

3.2.1 Identification of Projects• Section based on “Gap Analysis”

3.2.2 Sequencing• Projects sequenced into the three funding years

(2005/6/7) • Key decisions: which project is dependent on earlier

one; and, should any project be split into stages?

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Project Fiche

3.3 Results• Need following information for each

project– Starting position (benchmark)– Project purpose– Description of activities proposed– Rational for breakdown of projects into contracts– Sequencing and timing imposed

• “Results” must correspond with logframe

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Project Fiche

3.4 Activities (including Means)• Describe activities during life of project (from

logframe) and means (specific contracts / grants / subsidies – matched with budget breakdown)

• Means should show starting position (contract aim) and final position (assets in place & competencies acquired)

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Project Fiche

3.5 Linked Activities • Describe earlier EU activities and projects in

this area• Show connections with each other and to the

project• Describe relevant current activities by other

parties (government, private sector, donors, IFIs)

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Project Fiche

3.6 Lessons Learned • Show that project design incorporates

lessons learned from all relevant sources of experience

• “Cast the net widely” e.g. look at other Candidate Countries under Phare pre-Accession schemes

• The description must be detailed and convincing!

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Project Fiche

4. Institutional Framework • Identify project’s institutional framework & any

constraints• Will project results lead to change in

institutional framework?• Describe chain of command to ensure project

implementation (who is responsible for what?)

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Project Fiche

• IB Twinning Projects: • Show how project fits IB plan• Identify beneficiary institution and outline project

scope

• Investment Projects: • Need to identify the “engineer”, “employer” and

“owner”

• Sector Programmes: • Describe donor coordination and monitoring system

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Project Fiche

5 Detailed Budget• See budget model in Fiche format• Make sure figures add up, are consistent with

Section 11 (Investment Criteria) and Annex 3 (Contracting and Disbursement Schedule)

• Quantify co-financing from national sources and state degree of certainty (also IFI co-financing)

• Investment Projects (ESC): require national public co-financing. Not IB.

• Twinning: expected budget of twinning covenant

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Project Fiche

6 Implementation Arrangements

6.1 Implementing Agency: Contact details of CFCU

6.2 Twinning: imp. Arrangements, beneficiary etc.

6.3 Non-Standard Aspects: describe N-SA (e.g. grant or fund) or confirm PRAG will be followed

6.4 Contracts: expected # and value of contracts by project / year / phase

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Project Fiche

7 Implementation Schedule

7.1 Start Tendering / Call for Proposals: • Date (also, when will TOR / Tech Specs be

ready?)7.2 Start of Project Activity: • date first contract / grant scheme starts7.3 Project Completion: • date of last payment under last contract / grant

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Project Fiche

8 Equal Opportunity• How will equal opportunity by women and

men be assured and how will women’s participation be measured?

• Description should be precise and concrete

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Project Fiche

9 Environment• Has initial environmental screening or EIA been

carried out? When? Copy available?• EIA may be required by int. / national law, or be

pre-condition for funding, for project proposals of a particular type or size

• Directive 85/337/EC requires MS to adopt legislation to ensure projects likely to have significant env. impact subject to EIA

• Describe major anticipated environmental effects of project

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Project Fiche

10 Rates of Return (applies to all ESC projects)• Need to follow Commission Guide to Cost-

Benefit Analysis of Major Projects– Economic Rate of Return?– Financial Rate of Return (where applicable)?– Pre-Feasibility / Feasibility studies

completed? When? By whom? Copy available?

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Project Fiche

11 Investment Criteria (applies to all investments)

11.1 Catalytic Effect• Project must catalyse a priority accession activity

which would not have occurred / been delayed 11.2 Co-financing• All investment projects (and inv. associated with

IB projects) need co-financing from national public funds

• EC will fund up to 75% of eligible public expenditure

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Project Fiche

11.3 Additionality• EC funds must not displace other funding

(esp from private sector)• Demonstrate by referring to low rates of

return (as shown in Section 10)11.4 Project Readiness and Size• Project ready for contracting - all studies

complete (for year 1 at least)• EUR 2m EC contribution – minimum inv.

project size

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Project Fiche

11.5 Sustainability• Investment must be sustainable in long run• Complies with EU norms and standards and

is in line with the Acquis for relevant sector• No adverse environmental impact• Financially sustainable

11.6 Compliance With State Aids Provisions• Respects state aid provision of Europe

Agreement

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Project Fiche

12 Conditionality and Sequencing• Must be completed for all projects• Describe specific and achievable

conditionalities showing what should be done by when and by whom

• Exclude general conditionalities outside project control

• Most effective conditionality = action that must be carried out / approved before project starts (e.g. institutional restructuring plan)

• Include most important project milestones

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Annexes to Project Fiche• Logframe• Detailed implementation chart (year one at least)• Contracting and disbursement schedule, by quarter,

for project duration • Studies– All Projects: list of (pre-) feasibility studies, ex-ante

evaluations, other preparatory work– Investment Projects: exec. summaries of economic &

financial studies, EIAs etc.• Reference list of relevant laws and regulations• Reference list of relevant strategic plans and studies

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2. Activity and resource schedules

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Activity and resource schedules(see examples)

• Logframe: broad description of activities• Operational detail necessary

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Resource schedule

Activities, inputs- Equipment- Salaries etc. Units, cost per unit,

funding source

Cost per

planning period

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Contracting and disbursement schedule

• Show for project period contracting points

• Show for project period expected payments in time

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Conclusions

• Good project design starts with a sound problem analysis (problem tree) and make use of logframe

• Project design should be logical and have measurable objectives (logframe)

• The project fiche and logframe can help you to draft a good proposal

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Exercise: project fiche and activity plan

Trainer will present background information on a real case Project Fiche

Trainer will lead a group discussion covering:- problem/need- overall objective- project purpose- results and activities for the project

Trainer will go through PF documentation and comment it together with WG Members