PROGRAMMING CYCLE, SETTING PROGRAMME PRIORITIES AND

TARGETS, MONITORING, REPORTING AND EVALUATION OF THE

PROGRAMME

David Toft SST-CONSULT /Kommunalkredit Public Consulting

Promoting Clean Urban Public Transport in Kazakhstan: Designing a Green Investment Programme

14 December 2016, Astana

• Options for basic institutional forms: • What does programming imply?• Context of programming• Critical elements of programming• Input to programming – environmental strategy,

policy and regulations• Expenditure and non-expenditure programme• Who should programme?• Essential skills• Programme implementation• Conclusions

Structure of the presentation

What does programming imply?

• Process to articulate goals and objectives of an environmental protection plan

• Dialogue on substance and meaning of the goals and objectives

• Work to assess environmental benefits to be achieved by the programme

• Activity to describe eligibility and appraisal criteria for the programme

• Attempt to define and establish the best concept to implement the essential activities of the programme and its implementation mechanism

Context of programming

- strategy (needs and problems)

- policy (priority elements)- plan (essential activities)

- framework (legal and institutional)

- human health, environmental protection, nature conservation- air, water, nature, solid waste- waste water treatment, emission reduction, waste collection- law, regulations, enforcement

- programming (non-expenditure and expenditure programmes)

- priorities for programming- setting programme targets- costing a programme- priorities within a programme

- programme implementation - projects selection, appraisal and control- post-implementation appraisal

Basis for successful programming

• Sustainable development strategy• Environmental policy• Implementation plan• Legal and administrative regulations• Quality of strategic documents and regulations• Willingness to cooperate among partners• Availability of projects ready to implement• Enforcement and control

Non-expenditure programme

• Goals and objectives to be achieved without public subsidies

• Non-expenditure actions include legal and administrative mechanisms (standards, taxes, fees, permits)

• Regulatory requirements are intended to stimulate environmentally responsible behavior

• Costs associated with environmental regulations are borne by environmental users

• A programming entity is not expected to take part in implementation of non-expenditure programmes

Expenditure programme

• Goals and objectives cannot be achieved without subsidies

• Financial assistance to be provided to carry out investment projects

• A programming entity needs to set minimum requirements as to the development of a programme

• A programming entity needs to justify a cluster of programmes accepted for implementation

• A programming entity must balance the cost of a programme with its budget

• Programme priorities to be established to identify eligible projects

Essential elements of an expenditure programme

• Objectives: specific, measurable, realistic, time-bound

• Priorities: few, clearly stated• Time-frame of a programme specified• Cost estimates of achieving the objectives• Sources of financing• Eligible project types• Eligible beneficiaries• Terms of financing• Principles and rules of operation• Institutional arrangement for managing the

implementation of the expenditure programme

Emergency situations (1)• No environmental strategy allowing for

adoption of an expenditure programme. Long list of all-inclusive environmental problems, no sense of urgency. The programme must be built with assumptions concerning essential activities to be carried out. A broad dialogue with general public and contact with key stakeholders become indispensable.

• The strategy lacks an implementation plan. A wish list of actions must be scrutinised and turned into applicable tasks.

Emergency situation (2)

• The implementation plan is incomplete. Too many priorities are specified. Everything is equally important. It is important to analyse priorities and select their subset to be included in a programme.

• The strategy and implementation plan are complete and well elaborated. The responsible government authority has developed a realistic expenditure programme. An implementation authority has obtained a sufficient guideline and resources.

Who should programme?

• Government entities responsible for environmental protection

• Local authorities and municipalities• Suppliers of financing for public

expenditure programmes• Other pubic agencies and institutions • Programme implementation agencies

if not provided with public expenditure programmes

Essential skills• Capacity to transform goals highlighted in

strategies and policies into a set of actions

• Easy access to strategy documents• Understanding of abilities and obligations

to be utilised and fulfilled• Dedication to find the best way to address

public spending in environmental protection

• Willingness to cooperate with partners while preparing a programme

• Establishing and using a feedback channel with an implementation agent

Programme implementation

• The implementation agency should be capable to find partners for reaching targets set by the programming exercise

• Available subsidy should be distributed by an implementation agency among efficient projects to make them financially feasible

• Progress assessment of a programme and monitoring of projects implementation should allow for meeting the programme targets within a limited time

• Post implementation evaluation of the programme should allow for improvements of both programming and implementation

Conclusions

• Programming is essential for turning strategies and policies into effective implementation

• Programming plays a role of a strategic conceptual design that must precede effective distribution of subsidies. Programming:

- adds a detailed description to goals and objectives provided in strategies and policies

- presents an expected benefit (targets) to be achieved within a limited time

- defines eligibility and appraisal criteria for successful projects

- assesses costs

PRIORITISING ENVIRONMENTAL

EXPENDITURE

• Stanisław Sitnicki• EcoFund Foundation

Structure of presentation

• Key principles• Public versus private financing• Selection of an expenditure

programme• Example – Swiss compensation

package• Allocation of funds• Concentration versus dispersion of

funds• Supporting innovations• Involving public• Conclusions

Key principles

• Public funds should not replace private financing

• Expenditure programme only if public subsidy proves to be indispensable

• Funds allocated to the expenditure programme at a strictly justified level

• Concentration on the most pressing issues• Encouraging the private sector to take the

lead• Introducing new techniques and

technologies• Supporting education and public

participation

Public versus private financing

• Expenditure programme is more often selected than non-expenditure one

• Command and control system generates external environmental costs that need to be compensated

• Subsidies may also lead to unjustified earnings

• Public financing creates a positive incentives and is treated as more friendly

• Limit to public assistance in meeting environmental requirements to assure competition

Selection of an expenditure programme

• Problems: - availability of well prepared programmes - legal and institutional base to select

programmes - political pressure to propose a certain

programme• Approach: - inspect strategy documents and policies - check internal and external obligations - monitor quality of environmental

resources - consult with scientists and NGOs - compare costs and benefits

Example (Swiss compensation package to Poland)

ObjectivesAllocation

(million Euro)

1. Improvement of services in the field of urban infrastructure to raise people’s living standard and to promote economic developmentA. Management of solid wastes; collection, sorting, and treatment of wastes and hazardous wastes, including hospital wastes

31.5

2. Raising of energy efficiency and reduction of pollution emissions, especially the emissions of greenhouse gasesand hazardous substancesA. Introduction of renewable energy systemsB. Improvement of energy efficiency

31.5

3. Nature conservation; sustainable functioning of ecosystems in the geographic concentration areas

4.0

Example (cont.)Programmes proposed to implement

objective 1Allocation

(million Euro)

1.1 Regional municipal waste management system for population over 100 000 people

10.5

1.2 Setting up of an innovatory system of the selective collection of packaging wastes (“Re‑Centers”)

3.15

1.3 Development of the system of selective collection of broken glass and improvement of the broken glass processing quality, inclusive of the related education

8.4

1.4 Reduction of asbestos hazard: A programme “1 000 Roofs Asbestos-Free”

9.45

Example (Regional waste management system)

• Goal: encourage a selective collection of municipal waste for population over 100 thousand people

• Information gathering: how much waste is collected within a selective collection system, what are the legal requirements concerning selective collection of waste, what should be a successful project

• Eligibility criteria: project size, title to the land, location decision and feasibility study

• Ranking criteria: level of recovery (secondary materials, biodegradable waste), cost-effectiveness, technical innovativeness, location in priority areas, education package

• Benefits: at least 15% of recovery of secondary materials, at least 25% of recovery of biodegradable waste, reduction of deposits at the landfill by 40%

Example (A system to collect a packaging wastes)

• Goal: setting up Re-Centers in large shopping chains

• Information gathering: what is the potential to recover packaging materials, how much should be collected, how Re-Centers operate abroad, what should be a successful project

• Eligibility criteria: available funds to balance costs, a multi-annual plan of operation, a contract with shopping centers to cover operating costs

• Ranking criteria: attractive design, degree of automation and self service, professional staffing, attractiveness of education, future development of a Re-Center

• Benefits: PET packaging 3 000 tons, aluminum cans 300 tons, glass 12 000 tons, paper 6 000 tons, batteries 150 tons per year collected in 25 Re-Centers

Allocation of funds

• General budget for environmental related programmes

• Cost-effectiveness principle• Earmarking of funds• One year versus several years

allocation• Adjustment of an initial allocation of

funds• Availability of effective projects• Possibility to correct and improve an

ongoing programme

Concentration versus dispersion of funds

A. Concentration - address pressing environmental issues

first - assure a quick improvement - invest in modern technologies - overcome limited skills and experiencesB. Dispersion - assist many programmes at the same

time - minimise mistakes in prioritising

programmes - avoid accusations of being biased - accept and test many different ideas

Supporting innovations• Purchase and implementation - sectors which offer new technologies (sludge

treatment, renewable energy sources – solar, biomass, wind, electronic separators of glass and plastic)

• Production and marketing - expand domestic demand to make innovative

production profitable, encourage world leaders to set branches in the country, support marketing efforts of domestic producers

• Know-how and education - select expenditure programmes focused on the

exchange of environmental specialists and activists

Involving public

• Expert panels to comment on a list of proposed programmes and their contents

• A list of possible programmes under each objective which were not supported

• Mobilisation of local communities to participate (financial or in kind) in programme implementation

• Involving public (especially NGOs) in monitoring progress implementation and environmental benefit

Conclusions

• Programming is a social and political process

• Priority expenditure programs should be selected among many others through an open and transparent manner

• Burning environmental issues should be addressed first

• Concentration of efforts is accompanied by concentration of subsidies

• Innovations should be seen as an important element of a priority expenditure programme

METHODS OF SETTING PROGRAMME TARGETS

• Stanisław Sitnicki• EcoFund Foundation

Why needed?

• To define outcomes or impact of the entire programme

• To assess the cost of the programme• To measure effectiveness of

subsidies provided for the programme

• To set milestones in programme implementation and monitor its progress

• To perform evaluation of the programme by comparing targets with outcomes or impacts achieved

What should they be? (1)

• Specific – programme objectives to be narrowed down to a list of outcomes important to deliver an expected result

• Measurable – outcomes or impact of the programme should be presented by quantifiable indicators

• Realistic – expected targets should be technically feasible and achievable based on available resources and experiences

• Time-bound – targets should be reached within a time reserved for programme implementation

What should they be? (2)

• Precise as much as possible• Establishing clear boundaries

between eligible and non-eligible projects

• Separating projects that cannot apply for subsidy

• Sharp and well defined, neither too broadly nor too narrowly

• Directing projects towards the implementation of the expenditure programme

Example: Development of a system of selective collection of broken glass and improvement of the

broken glass processing quality• Problem: - improve the glass waste collection system and provide

facilities for the glass waste to be used as secondary raw material by glassworks

• Objectives - recycling of glass should be at the level of 60% of its

production in 2015

• Targets - limit a significant deficit of broken glass as a component of

glassmaking material (realistic) - collect and recover waste glass to double the current level

of recycling (250 000 ton a year, 20 % of production) (measurable)

- use efficient and fully automated glass sorting technologies to separate it by colours (specific)

Example: Reduction of asbestos hazard: A programme - “1 000 Roofs Asbestos-Free” for each of the four

regions of top priority• Problem: - total quantity (about 15 million tons) of asbestos requires

disposal until 2032

• Objectives: - elimination of asbestos from roof coverings

• Targets: - removal of at least 165 000 m2 of asbestos-containing roofing

panels and insulation boards that pose a hazard of asbestos emission to the environment (measurable)

- installation of hot water pre-heating solar collector systems subsidised, if done simultaneously with the planned roof repair work (specific)

- about 200 tons of asbestos to be removed from roof coverings in the four priority regions (realistic)

Process of setting targets

• Define problem or problems that need to be addressed. Problems need to be described to present their scope and consequences. They pose threads to environment and health but may also provide opportunities

• Translate the programme into objectives to narrow down the necessary action. There is a long list of actions to be taken to address a chosen objective

• Identify interim steps to achieve a selected objective. Each of them may be seen as a target to be accomplished in order to meet a selected objective to a possible extent

Methods to select targets

• Assess a scope of a problem (what if not action to be taken)

• List of critical objectives that need to be addressed

• Rank objectives and set a priority order

• List targets to be achieved under each objectives

• Rank targets and set a priority order• Assess the cost of a programme and

decide on the scale of subsidy

Methods to rank targets – a multi-criteria analysis

- Design a list of criteria to be used to evaluate each target (environmental, technical, economic, social)

- Agree on the long list of targets that contribute to meeting a required objective

- Decide on a maximum number of points that may be assigned to each target based on a separate criterion

- Carry out discussion among expert panel on the importance of each target

- Assign points provided by experts to each target and prepare a ranking list

A practical approach to prepare a ranking list of targets

• Collect opinions and preferences on the proposed targets from potential beneficiaries

• Continue ongoing programmes by expanding the scope of already selected targets

• Request independent expert’s proposal for designing targets for the given objectives of expenditure programmes

• Announce competition among eligible beneficiaries for subsidies without specifying targets

Conclusions

• The expenditure programme is ready to implement only if problems, objectives and targets are fully designed and discussed

• The list of targets should be specific, realistic, measurable and time-bound

• Adequate costing of a programme depends on the availability of well defined targets

• The implementation of each target should also have its limit. This requires another prioritising exercise

PRIORITIES FOR THE EXPENDITURE PROGRAM

• Stanisław Sitnicki• EcoFund Foundation

Structure of presentation

• Priority setting among targets• Criteria to select targets• Allocation of subsidies• Controlling the supply of projects• Limit to subsidies• Cost-effectiveness• Differentiation of priorities for investments• Conclusions

Priority setting among targets

• Expenditure programme does not specify projects

• Target list offers information on what the subsidy may be spent for

• Projects may be accepted only if they contribute to accomplishing targets

• Decision on targets helps to concentrate subsidies on key investments

• Limited number of targets reduces pressure from different stakholders

• List of priority targets adds transparency to distributing subsidies

Criteria to select targets

• Type of environmental resources promoted

• Type of projects – investment, education, research, etc.

• Type of beneficiaries• Region or locality targeted for support• Promotion of specific national objectives• Addressing national, regional or local

problems• Fulfillment of international obligations

Allocation of subsidies

• Earmarking funds allocated to support a particular target

- sector study was conducted in a programme development phase - demand for subsidy was assessed together with a capacity to prepare and submit projects• Limit on a number of projects which may receive

subsidy under each programme target• No up-front brakedown of available subsidies

among priority targets

Controlling the supply of projects

• One project from each applicant• Limited time to submit application

(cut-off date)• One time call for project proposals• Rigid formal screening• Narrow list of eligible applicants• Long list of eligibility criteria• High requirements incorporated in

appraisal criteria

Limit to subsidies

• Differentiation by targets (education, campaigns, monitoring, nature protection, etc. are better subsidised than investment projects)

• Preferences for different groups of applicants (government bodies and municipalities are given higher subsidies for the same project)

• Preferences for a certain region (difficult environmental conditions, high environmental value, low level of development)

Cost-effectiveness mechanism

• Minimal requirement on cost-effectiveness to accept project

• Similar subsidy to purchase products which offer the same environmental effects (solar collectors, wind mills, buses operated on compressed natural gas instead of oil)

• Cost-effectiveness included in the list of project appraisal criteria

Differentiation of priorities for investments

• Large and small investment projects• Commercial and non-commercial

projects• Innovative and traditional

investment projects• New versus on-going projects

Conclusions

• Priorities for an expenditure programme decide about the final outcomes or impacts of subsidies

• Selection of priority targets depends on: - availability of subsidies - number of submitted projects - preferences towards applicant’s group or project locations• Cost-effectiveness should be used as one of the

important criteria to prioritise targets within a programme

MONITORING AND EVALUATION

• Stanisław Sitnicki• EcoFund Foundation

Monitoring and evaluation in programming

Know the problem/set objectives

Communicate problem

Sectorpriorities and targets

Cost estimates

Justify co-financing mechanism

Project viability and sus-tainability

Institutional support

Monitoringand

evaluation

Communicate results

Monitoring and evaluation - principles• Translate sector priorities into targets: Logical framework analysis Indicators

Product indicator: measure of the object or tangible structure that results from the implementation of a project:- Length of new water (or wastewater) network constructed

- Number of wastewater treatment plants constructed

- Number of heating sources constructed

Result indicator: measure of the extent to which an objective has been achieved:- Number of persons connected to water (or wastewater) network

- Number of persons connected to district heating system

- Number of persons with solid waste collection service

Monitoring and evaluation - principles Indicators

Outcome indicator: measure of physical impact of a project:

- Volume of wastewater treated

- Volume of water supplied

- Volume of solid waste collected in segregation programme

Targets Strategic (20-50 years) Medium-term (10-20 or 5-10 years when

availability of resources has not stabilised) – prioritise them considering socio-economic, and environmental impacts

Short-term targets (1-5 years) aimed at achieving medium-term targets

Transparent monitoring and evaluation Monitoring: continuous process of collecting

and analysing information to measure progress towards expected results

Starts with signature of financing agreement Reporting Document verification and site visits Compliance with time and financing

schedule Evaluation – closes the project cycle Communicate results