Preparation of IPA II Action Documents

Project funded byThe European Union

Government of the Republic of SerbiaEuropean Integration Office

PREPARATION OF IPA II ACTION DOCUMENT(AD)

All presentations are available on the PPF5 website: www.ppf5.rs


Government of the Republic of Serbia

European Integration Office

to explain the core content of IPA II Action Document

to participate in and contribute to the process of preparation of IPA II Action Documents

Training Objectives




Candidate countries and potential candidate countries are “Beneficiary countries” which have access to assistance in all five “policy areas” (formerly “components”); Sector approach: almost complete shift from project-based assistance to co-financing of agreed country sector strategies;Flexibility to re-allocate funds between policy areas and/or countries;Opportunity for broader usage of innovative financial instruments. e.g. sector budget support;And*...

Several novelties under IPA II…




IPA II Regulation / Rules of Application

Enlargement Package (EU Enlargement Strategy, EC Progress Report /SAA/ European Partnership)

Country /Multi-Country Strategy Paper

National Sector Programme or (IPA-specific) Sector Planning Document -SPD)

Action Documents (ADs)

(Draft) Action Programme (AP)

Financing Proposal

Commission Implementing Decision

Financing Agreement

Annexed: ADs

Annexed: AP

Hierarchy of Strategic Documents




Basic Terms used in IPA II Country Strategy Paper/Multi – Country Strategy Paper: the overreaching strategic planning documents - describe in

broad terms how Beneficiaries will use financial assistance to address the political priorities of the Enlargement Strategy and the reform efforts under different Sectors

Action Programme: A group of actions defined by clearly identified objectives and expected results, as well as implementation arrangements and other related conditions for execution, adopted through a Commission implementing Decision.

Action: A coherent set of coordinated activities carried out to meet a defined objective, which have an estimated total cost plus implementation schedule and performance parameters.

Activity: A component of an Action which can be clearly identified by its costs and type of financing (procurement, grant etc.)




Scope Underlying document – implementation oriented - to be used for the preparation of the Financing Proposal.

Type Document of a working/operational nature to be shared mainly between the Republic of Serbia, the EU Delegation and the Commission

Responsibilities

Preparation by the Republic of Serbia.Supervision and quality control by the

EU Delegation and EC services

SECTOR BASED AD/STAND ALONE AD




ANALYSIS PHASEIN PREPARATIONOF IPA AD

UNDERSTAND,IDENTIFYEXPLAIN,ASSESS,DEFINE,

STRUCTUREACTION




Then provide Action Rationale…

briefly describe the context -key problems/needs which are currently faced by the Beneficiary Country and how the Action will help resolve these

identify the stakeholders most affected by the problem and

what institutional and organisational issues should be addressed




Rationale…Relevance with

the CSP priority(ies)the Action addresses

priority(ies) of the Enlargement Strategy(if relevant) ;

priorities of the Annual Progress Report the Action will address;

the EU policies and any regional strategy in line with the Action;

Multi-Country Strategy Paper (if relevant);

other relevant actions or strategies supported by the national authorities and/or the donor community.




•

Rationale…Lessons learned

short description of problems/issues encountered in previous actions in the same field and how they can be avoided.

key recommendations and follow-up of the relevant evaluation(s)

Q for you: What key lessons can be drawn for future financial assistance?




Rationale…Sector Approach Assessment

An overview of Sector Maturity based on main EC assessment criteria




Sector Approach in IPA Pogramming for Serbia

Work together with all relevant stakeholdersShift from stand-alone projects to programmesNational policy process & ownership Increase the coherence between policy, spending and results, and reduce transaction costs




EC Assessment Criteria for Sector Approach

Key Criteria 1. National sector policies/ strategies2. Institutional setting, leadership & capacity3. Sector & donor coordination4. Mid-term budgetary perspective5. Monitoring & performance assessment

framework6. Public finance management7. Macro-economic framework




A summary of the sector approach assessment based on EC criteria

In the case of AD, a summary of the sector policy/context, even in the case of a Stand-alone Action (if relevant), including any plan of the Beneficiary Country to improve its capacity and move towards a sector approach.

Overall Assessment




For a Sector Support Action an overview of the following aspects:description of any existing Country Sector Policy/Strategy and how

this translates into an IPA Action any specific IPA SPD & the way how it was prepared; institutional arrangements ,including lead ministry; sector and donor coordination (i.e. very brief description of the

mechanisms for ensuring coordination between the government institutions and between the government and donors/other stakeholders);

Sector budget and medium term perspective (very concise)

Other aspects, i.e. performance management framework; Public finance management system, may be added but should remain very concise. further details can be added as an annex.

Discussion/group work based upon Key questions in line with EC criteria that are considered essential for

sector approach...




Logical Framework Approach

Analysis phase: Preparatory analysis – situation analysis Stakeholder analysis Problem analysis Objective analysis Strategy analysis

Planning phase: Logical Framework Matrix Activity scheduling Resource scheduling

PPF5

perhapes you should change title of this slide, something like LFM core element of AD



Stakeholder Analysis





This comprises a more detailed analysis:

• Of the people, groups or organizations that may influence or be influenced by the problem or a potential solution to the problem.

• The objectives of this step are to identify and discuss the interest and expectations of persons and groups that are important to the success of the intervention.




Politicians (Values)

Technicians(Solutions)

Recipients(Problems)





POLITICIANS TECHNICIANS RECIPIENTS

PUBLIC SPHERE Government

Public Administrati

onLocal

Communities

PRIVATE SPHERE Chambers

Consultants and

researchersSMEs

SOCIAL SPHERE

Trade Unions Universities CSOs






Interests

Previous experience

Questions of authority

Pressure at work Priorities

Occupations and

relations

Personal characteristics

Different stakehoders perceive same changes

in different ways





Stakeholder and basic characteristics

Interests and how affected by the problem(s)

Capacity and motivation to bring about change

Possible actions to adsress stakeholder interests



Group WorkStakeholder Analysis



SWOT Analysis




SWOT is a method for conductingsituation analysis

Participatory approachSubjective stands of the groupFacilitates problems and objectives identification

SWOT Analysis




SWOT analysis

Internal factors

Strengths Weaknesses

Externalfactors

Opportunities Threats

SWOT Analysis

Identify S. W. O. T. , then analyze through SWOT Matrix

strategic choices




INTERNAL

TRANSLATE INTO ACTION PLAN

EXTERNAL

STRENGTHS WEAKNESSES

OPPORTUNITIES

How do we use our strengths to exploit the opportunities?

How do we overcome the weaknesses that

prevent us exploit the opportunities?

THREATS

How do we use our strengths to reduce the likelihood and

impact of the threats?

How do we overcome the weaknesses that

will make these threats

a reality?




INTERNAL

EXTERNAL

STRENGTH

•High % of young peoplewith higher education

WEAKNESSES

•High unemployment rate of young population

OPPORTUNITIES

•Increase of young labour force

S-O /Maxi- Maxi strategy

Build on strengthsto exploit

opportunities

W-O /mini- Maxi strategy

Minimise weaknesses to exploit opportunities

THREATS

•Emigration of skillful labour force

S-T /Maxi –mini strategy

Build on strengths in order to fight off

threats

W-T/mini- mini strategyMinimise weaknesses in order to fight off

threats

Invest on high education toqualify young labour force

Invest on high educationto avoid brain-draining

Minimise unemployment toexploit young labour force

Minimise unemployment toavoid brain-draining

PPF5

use sector specific examples



Problem Analysis




Establishing the roots of causes

in order to focus the intervention design on them

and not solely to the symptoms of problems!

Problem Analysis




Process of identification of negative aspects of some

existing situation and establishment of

cause and effect relations between identified aspects / problems.

Problem Analysis




Problem Analysis

Once identified, the stakeholder group should meet and conduct a facilitated discussion to further

identify and clearly state the problems that need to be

resolved.




• Precise defining of framework and object of analyses

• Identification and formulation of the problems

• Selection of primary or focal problem(s)

• Problem tree development

Problem Analysis




Only existing problems should be identified, not potential ones, future ones nor imagined ones

Problem is not absence of solution, but existence of some negative state of affairs

On each paper you should write only one problem

Problem Analysis




• Public transportation in Tac City

Problem Analysis




Problem Analysis

Insufficient maintenance

of busses

Bus Company losing trust of the passengers

Increased traffic jams in the city

Busses do not arrive and leave on time

Passengers suffer injuries or die

Frequent traffic accidents

Bad quality of roads

Bus Company is losing money

Busses are in bad technical conditions

Busses are very old

Passengers use alternative traffic means

Reckless driving of bus drivers

Passengers arrive late




Problem Analysis

Technique for establishing cause-effect relations between problems and its

visualization




Picture of existing negative state of affairs

Effects

Central problem

Causes

Problem Analysis




1. Identification of primary or focal problem(s)2. Identification of essential direct causes of

primary problem – first order causes3. Identification of essential and direct effects

of primary problem – first order effects4. Identification of second order causes and

effects, third order, etc.5. Problem tree construction – drawing cause-

effect relations, bottom up6. Problem tree review

Problem Analysis




Effect

Focal problem

Cause Cause Cause

Cause Cause

Effect

Effect Effect

Problem Analysis




Problem Analysis

Insufficient maintenance

of busses

Busses are very old Bad quality of roads

Busses are in bad technical conditions

Reckless driving of bus drivers

Busses do not arrive and leave on time

Passengers arrive late

Frequent traffic accidents

Passengers suffer injuries or die

Bus Company losing trust of the passengers

Passengers use alternative

traffic means

Bus Company is loosing money Increased traffic jams in the city

EFFECTS

CENTRAL PROBLEM/S

CAUSES



Group WorkProblem Analysis



Objective Analysis




Process in which Problem tree is converted into Objective/solution tree and analysis of

that product

PROBLEM TREE OBJECTIVE TREE

Objective Analysis




Objective Analysis

Reformulate each problem in a “problem tree” into a positive statement (objective)

Verify hierarchy of objectives Visualization of relationships in a

diagram




Objective TreeOverall objectives

Project Purpose

Results

Problem TreeEffects

Focal problem

Causes

Objective Analysis




Rural exodus

Low productivity

High unemployment

Low skilled labour

Poor education facilities

Outdated technologies

Rural immigration

Higher productivity

Lower unemployment

Higher skilled labour

Better education facilities

Updated technologies

.. Is caused by.. .. Will lead to...




1. Starting from the top reformulate all elements of Problem tree into a positive, desirable conditions

2. Instead of cause-effect relations in Problem tree, established relations are means-solution or means-objective

3. Starting from the bottom check whether established means-objective relations are logic and valid

Objective Analysis




4. If needed:a) revise objective statementsb) erase solutions/objective which are

unrealistic or unnecessaryc) add new solutions/objectives where

necessary5. connect with lines to show means-

solutions or means-objective relationships

Objective Analysis




Busses are well maintainedOld busses are being replaced

as needed

Good quality of roads

Busses are in good technical condition

Drivers drive more carefully

Busses arrive and leave in line with schedule

Passengers arrive on time

Number of accidents has

decreased

Increased safety of the passengers

Trust of the passengers regained

Increased number of people use public transport

Buss Company makes profit Improved traffic situation in the city centre

Overall objective

Specific objective(s)

Results

Objective Analysis



Strategy AnalysisAlternatives Analysis




• Final step in ANALYSIS PHASE• Selection of strategy which will be used

for achieving desired objectives• Process of decision making on which

solutions (objectives) will be included in project and which will stay outside of project, as well as what is purpose/specific objectives and what is overall objective

Strategy Analysis




• The objective tree usually depicts several possible strategies that can comprise a solution to each sub-problem and to the focal problem.

• Since there is usually a limit to the resources that can be applied to the project, it is necessary to examine these alternatives and select the best one.

• To do this, decision-makers will first need to select criteria upon which they can base the analysis.

Strategy Analysis




• Which combinations will most probably lead to desired results and sustainable benefits?

• Which is the best way to support the ownership over the project,

• including institutions/organizations capacity development?

• Which option is the most efficient one?

Strategy Analysis




Busses are well maintainedOld busses are being replaced

as needed

Good quality of roads

Busses are in good technical condition

Drivers drive more carefully

Busses arrive and leave in line with schedule

Passengers arrive on time

Number of accidents

has decreased

Increased safety of the passengers

Trust of the passengers regained

Increased number of people use public transport

Buss Company makes profit Improved traffic situation in the city centre

passengers

drivers

roads

busses

Strategy Analysis



DEVELOPMENT PHASE in preparation of AD




Intervention Logic NAD /CSP SPD AD

Overall Objective /Enlargement

Strategy

Priority /Target

Measure

Results

Results

Overall Objective

Specific Objective

Overall Objective

Specific Objective




SequencingSector Planning

DocumentAction Document

Results

R1R2R3R4R5R6R7R8

Specific Objective 1

Specific Objective 2

Results2015R1R2

2016R3R4R5R6

2017R7R8




Overall objective(1)

Indicators(8)

Sources of verification (9)

Specific objective(2)

Indicators(10)


Assumptions(7)

Results(3)

Indicators(12)


Assumptions(6)

Activities(4)

Implementation Modalities

Costs Assumptions (5)

LFM - Completion




Objectively Verifiable Indicators (OVI)represent the baseline for measuring performance, monitoring operations and the overall effectiveness of programme implementation.

Performance Indicators mainly OUTCOME indicators at the level of Specific Objective

provide information on changes which occur for direct beneficiaries

Performance measurement and Indicators




Impact indicators - to be set at the level of the SPD overall and specific objective and can be identified from CSR/NAD targets

Outcome indicators measure the result performance and provide information on changes which occur for direct beneficiaries

- to be set at the level of AD specific objective;

Output indicators- to be identified as the consequences of AD activities carried out and their products and set at the level of result

Indicators




Indicator Description Baseline (year)

Target (year)

CSP indicator (if applicable)Action outcome indicator1Action outcome indicator2Etc.

Indicator measurement (AD)



Implementation Arrangements




ROLES AND RESPONSIBILITIES the main institutional stakeholders involved in the management and implementation process of the Action their respective roles and responsibilities (e.g. Line Ministries, National Institutions/Agencies, Regional Authorities, etc.) as well as any coordination arrangements (working group, steering committee, etc)

IMPLEMENTATION METHOD AND TYPE OF FINANCING financing methods to deliver activities; i.e. indicative number and types of tender(s)/call for proposal(s)/grants, as well as, where available, the method of implementation and any delegated partners Co-financing arrangement

Explain…




Types of Contract and Associated Documents

IPA ActionDocument

SERVICES

SUPPLIES

WORKS

Terms of Reference

Technical Specifications

Bills of Quantity

GRANTS Guidelines for Applicants

Procurem

ent




Procurement Procedures

SERVICES>€300,000International restricted procedure

< €300,000 but > €20,0001.Framework contracts2.Competitive negotiated procedure

< €20,000Single tender

SUPPLIES> €300,000 International open procedure

<€300,000 but > €100,000 Local open procedure

<€100,000 but > €20,000Competitivenegotiated procedure


WORKS>€5,000,000 1.International open procedure 2.International restrictedprocedure

<€ 5,000,000 but > €300,000 Local open procedure

< € 300,000 but > €20,000 Competitive negotiated procedure


GRANTS >€2,000,000 International

call for proposals

>€2,000,000Local call for proposals

For any amount in cases of

urgencyDirect grant




Indicative Contracting TimeContract

TypeProcurement

ProcedureAverage

Time Taken SERVICE International Restricted

Tender(9)-12 months

Framework (3)-5 monthsSUPPLIES International Open Tender 9 months

Local Open Tender 6 monthsWORKS International Open Tender 12+ months

Local Open Tender 9-12 monthsGRANTS International Call for

Proposals12+ months

Local Call for Proposals (6)-9 months

Indicative Contracting Time




SPD: Programming and Implementation Plan

SECTOR TITLE

2014 2015 2016 2017 2018 2019 2020

Q3 Q4 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

ACTION 1P C C C/I I I I I I I I I I I I I I

Activity 1.1 P C C I I I I I I I I I I I I Activity 1.2 P C C C C I I I I I I I I I I ….. ACTION 2 P P P C C C C/I I I I I I I I I I I IActivity 2.1 P P P C C C C I I I I I I I I I I IActivity 2.2 P P P C C I I I I I I I I I I I I

P = programming (period when the IPA action programme is expected to be adoptedC = procurement and grant award procedureI = implementation period

Programming and Implementation PlanA part of SPD, detailed IP for the Action could be annexed to the AD



Budget preparation




Service contract is used for engagement of experts for delivery of defined tasks

Costs cover expert fees Budget is relatively simple – fees include other

costs (transport, per-diems)

Logic of the Budget Preparation – Services




Budget is calculated in relation to type and number of experts

Fees - usual cost: € 800-1000 for senior experts and € 250-400 for junior experts (it depends on expertise and period of engagement, short-term or long-term)

Incidental expenditures (between 2 & 5, sometimes 10% of budget)• Bank charges• Per diems for experts when working outside normal

place of work• Visibility events, translation etc.

Verification (e.g. around 2% of budget)• External auditor’s fees

Useful Guidance - Services




Supply contract is used for purchase of equipment

Contract covers equipment, including installation, training, spare parts etc.

Experts estimation is necessary It is necessary to take into account timeframe

(1,5 year to implementation)

Logic of the Budget Preparation

- Supplies




Value of the contract depends on the type and quantity of equipment

Costs are totally depended on the type of equipment (e.g. computer is around € 1,000)

Useful Guidance – Supply




Works contract is used for construction and reconstruction (infrastructure)

Contract covers all costs related to (re) construction, including materials, workers, engines etc.

Expert’s estimation is necessary Precondition for implementation is prepared

technical documentation, existence of relevant licenses etc.

Logic of the Budget Preparation – Works




Value of the contract depends on type and shape of (re) construction

Contingency reserve (6-15%) and supervision of works

Useful Guidance – Works




Grants contract is used for the grant scheme as direct donation for local and regional authorities and civil society organizations

Budget composition: total value of the grant scheme

Logic of the Budget Preparation – Grants




Represents transfer of knowledge and experience from MS to CC and PCC

Budget composition: detailed breakdown in line with twinning manual

Budget from practice: – Twinning: 1-2 million euros – Twinning light: 200.000 euro

Logic of the Budget Preparation– Twinning




Direct Agreement between the EC and institutions which have specific and unique knowledge necessary for project implementation (UNHCR, UNICEF, IFIs, IOM, UNDP etc.)

Budget composition: there is no prescribe form, but it should be presented in detail (expert fees, sub-contracting, supplies etc.)

Logic of the Budget Preparation – Direct Agreement




Cross- cutting issuesENVIRONMENT AND CLIMATE CHANGE (AND IF RELEVANT DISASTER RESILIENCE)Q: How environmental considerations have been integrated in the Action design” as well as how the 'Rio marking' of the Action for climate change 'adaptation' and 'mitigation' will be applied (if relevant)?Q:Describe the measures related to disaster resilience and risk prevention (if relevant)ENGAGEMENT WITH CIVIL SOCIETY (AND IF RELEVANT, OTHER NON-STATE STAKEHOLDERS)Q: What measures have been taken to associate civil society and/or social partners etc. in the design and implementation of the Action?




Cross- cutting issues

EQUAL OPPORTUNITIES AND GENDER MAINSTREAMINGQ: How does the Action take account of gender aspects during design and implementation phases?MINORITIES AND VULNERABLE GROUPSQ: How does the Action take account of people belonging to minorities/vulnerable groups? Q: How their involvement is facilitated?




Sustainability

the Action should be sustainable beyond its implementation period

Q: Define your commitment or describe required resources (human and financial)provided for the operation and maintenance of results once the Action is completed




Communication and Visibility

Details on any specific communication and visibility activity/plan for the Action, including information on target audiences (if relevant)

Useful tool (if required)-guidelines provided in the Communication and Visibility Manual for EU External Actions



Thank you for your attention

All presentations are available on the PPF5 website: www.ppf5.rs

Preparation of IPA II Action Documents

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