Independent State of Papua New Guinea

Public Investment

Programme Guidelines

Our aim is to reduce PovertyOur aim is to reduce Poverty

Department of National Planning and Monitoring, Waigani August 2007

Table of Contents

Page No.

List of Acronyms…………………………………………………………...…… (i)

Executive Summary…………………………………………….……………… (ii)

1.0 Introduction…………………………………………………………………….... 1

2.0 Setting………………………………………………………………………….. 1

3.0 Linkage Between MTDS and the Public Investment Program………..…... 2

4.0 Guiding Principles of the PIP………………………………………………..... 2

5.0 Objectives…………………………………………………………………….... 3

6.0 Annual PIP and Budget Cycle……………………………………………...…. 3

7.0 Proposal Formulation……………………………………………………...…… 5

8.0 Proposal Submission Procedure………………………………………..……. 5

9.0 Appraisal of Proposals……………………………………………………..….. 6

10.0 Disbursement Procedures…………………………………………………… 8

11.0 Management Committees…………………………………………………… 11

12.0 Monitoring and Evaluation…………………………………………………… 12

List of Figures Fig 1 Annual PIP and Budget Cycle…………………………………………… 4

Fig 2 Project Submission and Approval Process 6

Fig 3 Annual Disbursement, Review Procedure Cycle……………………… 10

Fig 4 Model of M&E Utilized by the Monitoring & Evaluation Division…….. 14

LIST OF ACRONYMS

APCD Aid Policy and Coordination Directorate

AS Assistant Secretary

CACC Central Agencies Coordinating Committee

DMED Development Monitoring & Evaluation Division

DNPM Department of National Planning and Monitoring

DPM Department of Personnel Management

DPLGA Department of Provincial & Local Government Affairs

DPPD Development Planning & Programming Division

DPD Development Policy Division

DRSSD Development Research & Strategic Studies Division

FED Financial Evaluation Division

GoPNG Government of Papua New Guinea

M&E Monitoring & Evaluation

MBC Ministerial Budget Committee

MOA Memorandum of Agreements

MTDS Mid Term Development Strategy

MTFS Mid Term Fiscal Strategy

NEC National Executive Council

NEFC National Economic and Fiscal Commission

NGO’s Non Governmental Organisations

PERR Public Expenditure and Rationalisation Review

PIP Public Investment Program

SIP Sector Investment Program

SSG Special Support Grant

SWAp Sector Wide Approach

EIC Expenditure Implementation Committee

PFD Project Formulation Document

TSC Technical Screening Committee

(i)

EXECUTIVE SUMMARY A rigorous and robust development planning, programming and monitoring system is critical towards achieving the ultimate goals of Papua New Guinea’s development agenda. Thus the Public Investment Program is intended to be a catalyst for development. As a central government agency mandated to plan, program and coordinate development funds on behalf of the Government, it is essential to provide a Guideline to strengthen and enhance the planning, budgeting and monitoring capacity at all levels of Government. The functional roles for the PIP Guidelines are to articulate clear development program/project proposals that will offer multiple benefits, to streamline and harmonize external development assistance and to strengthen public expenditure management. The Guidelines have been developed to provide guidance to planners and managers and features the followings:

• the planning, programming and approval of projects and programs under the Public Investment Program must be developed through the Government’s planning system. Figure 2 depicts a simple process that, when followed will enhance coherence and consistency in Government plans and programs, beginning from the Districts and Provinces right up to sectoral and national levels;

• fund identification, allocation and implementation needs the collective efforts of both the

National Government and donor partners alike, particularly in seeing the strengths of donors in areas of priority and supporting sectors or departments where necessary. Disorganized and unplanned hold fund allocations tend to result in irrelevant programs that hold back the development of sectors;

• the Government’s decision-making process for the approval of projects and programs

is a fair process and involves a lot of stakeholders. The Project Approval Process and the Budget Cycle Process (Figure 1) work hand in hand thereby enabling decisions made on programs and projects to be considered fairly.

• The PIP clearly articulates the MTDS and the Sector Investments Plans in terms of

programming and planning. These enable the development of projects to be coherent to Government development interests and are consistent over the mid term.

The monitoring and evaluation functions under the PIP are indicated to enlighten further on the broader parameters of the Monitoring and Evaluation Framework employed by the Department in monitoring the performance of the annual Development Budgets and the PIP as well as measuring the developmental impact. Similar to the planning and programming of programs and projects, the Monitoring and Evaluation facets of the PIP can be affected by other M&E Systems, especially by donors who utilize their own systems to monitor their programs and assess impact. The intention of this Guideline is to enable some synergy and compatibility in all systems so that the Government is able to effectively monitor performance of its programs. I commend this Guideline to all users and stakeholders.

Valentine Kambori, MBE Secretary

- (ii) -

1.0 INTRODUCTION 1.1 The Public Investment Program is a funding mechanism established by the

Government for the purpose of capital formation and capacity building to improve Public Sector Performance. The PIP translates development priorities identified in the MTDS into a coordinated set of investment activities that deliver development outcomes for the people of Papua New Guinea that have been identified and prioritized in the MTDS.

1.2 The underlying rationale for the program is to ensure that all public investments are

targeted at contributing to or directly enhancing the quality of life in the social, economic and cultural spheres of both urban and rural areas of Papua New Guinea.

1.3 The PIP is a planning and budgeting tool that helps to guide the design of investment

projects and the preparation of annual development budgets. To ensure maximum benefit the PIP process is implemented in close consultation with other key Public Sector Reform initiatives and sector coordination mechanisms.

1.4 These Guidelines detail the PIP process and is directed at planners, and managers of

programs and projects who depend on GoPNG and external resources for funding of development activities. By detailing the steps involved in preparing and managing the PIP stakeholders will be better able to discharge their roles and responsibilities to ensure a more efficient system for accessing and deploying public funds to achieve national development goals.

1.5 The PIP Guidelines also apply to Tax Credit initiatives, Special Support Grants (SSGs)

and the District Service Improvement Program (DSIP). 2.0 THE SETTING 2.1 Purpose

2.1.1 The agency charged with administering the Public Investment Program is the Department of National Planning and Monitoring (DNPM). Its main purpose is to:

• Provide a coherent strategy and policy planning process for effective,

sustained and equitable national development, ensuring the involvement of all key stakeholders

• Coordinate the public investment program in line with approved strategic directions, mobilizing funding as required

• Support and monitor implementation of the public investment program 2.2 Structure of DNPM

2.2.1 The Public Investment Program is managed by the PIP Wing of DNPM, headed by the Deputy Secretary (PIP). The PIP Wing of DNPM is divided into two major divisions comprising the Development Planning and Programming Division (DPPD) headed by a First Assistant Secretary and a Development Monitoring & Evaluation Division (DM&ED) also headed by a First Assistant Secretary. The DPPD is responsible for coordination, processing all proposals for funding under the PIP including registration, appraisal and screening; after funding is

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approved by Parliament the DMED takes over and is responsible for monitoring and reporting on all ongoing projects.

3.0 LINKAGE BETWEEN MTDS AND PUBLIC INVESTMENT PROGRAM 3.1 The primary focus of the Public Investment Program is to provide a clear and

consistent linkage between the Medium Term Development Strategy and the Development Budget framework.

3.2 The PIP will be strictly guided by the following key policy instruments;

• Medium Term Development Strategy (2005 – 2010) • Medium Term Fiscal Strategy • Medium Term Debt Strategy

3.3 Investment proposals need also to be consistent with the expenditure priorities of the

Medium Term Development Strategy 2005 – 2010.

• Transport Infrastructure Rehabilitation and Maintenance • Promotion of Income Earning Opportunities • Basic Education, • Development oriented Informal Adult Education • Primary Health Care • HIV/AIDS prevention • Law and Justice

4.0 GUIDING PRINCIPLES OF PIP

4.1 The PIP places emphasis on funding public goods and services where necessary,

special interventions in private and public goods and services to stimulate economic growth, raise living standards and improve service delivery.

4.2 The PIP will be based on development initiatives that are sound, affordable and

sustainable. 4.3 Projects in the PIP must ensure that all capital investment in each sector is backed up

by government capacity to maintain recurrent costs and management inputs on an ongoing basis. Emphasis will be placed on the absorptive capacity of national and provincial agencies with particular focus on delivery systems and processes.

4.4 External development assistance is coordinated and delivered through existing GoPNG

systems and processes and are consistent with the respective country assistance strategy of donors that have been approved by the GoPNG. To encourage the spirit of partnership between national and sub national governments and between the government and development partners, attention will be given to ‘joint planning and budgeting’ processes with development partners in the design and selection of donor projects.

4.5 In seeking to address disparities in development across the country the need to

achieve balanced development will be given due emphasis in the allocation of development resources.

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4.6 The PIP should promote principles of good governance and ensure that best practice principles of project management are followed throughout the life of the project. In this regard DNPM recognizes the need to facilitate project management training at all levels of the country.

5.0 OBJECTIVES 5.1 The broad objectives of the Public Investment Program are as follows;

• Investment is targeted at key sectoral programs that will promote social and economic growth and focused on the key expenditure priority areas of the Medium Term Development Strategy (MTDS).

• To strengthen coordination and collaboration between national and provincial agencies and between Government and development partners, Churches/NGO’s and the private sector in the planning and implementation of investment programs.

• To institutionalise a responsive, disciplined and a targeted Public Investment Program that is consistent with the Medium Term Fiscal Strategy (MTFS), Medium Term Development Strategy (MTDS) and Medium Term Debt Strategy.

• To institutionalise a rigorous and robust planning/budgeting dialogue process with sectoral agencies, sub-national agencies such as Provincial and District Administrations, Churches/NGO’s, development partners and the private sector.

• To streamline and harmonize all external development assistance within the overall Public Investment Framework

• To promote better targeting of resources towards MTDS priorities that address real needs and are able to deliver real development outcomes consistent with the MTDS

6.0 ANNUAL PIP AND BUDGET CYCLES 6.1 The PIP will be implemented in close consultation with the annual budget cycle to

ensure consistency and compliance with the Medium Term Fiscal Framework. Figure 1 summarizes the approval process in the annual budget cycle.

6.2 DNPM will prepare a consolidated Development Budget Submission outlining a list of

projects and resource requirements to go through an approval process in the following order:

August – September Budget Steering Committee chaired by Department of

Treasury

September CACC October Ministerial Budget Committee October NEC

November Parliament

6.3 As a statutory requirement, both the annual recurrent and development budgets are

presented to the NEFC and the Parliamentary Plans and Estimates Committee before the budget is handed down in Parliament

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Figure 1: A n n u a l P I P a n d B u d g e t C y c l e s

Public Investment Program Annual Budget Approval Cycle Management & Approval Cycle

Project Proposals Submissions

Departments/Provinces/Stat-utory Bodies/Private Sector

Technical Appraisal by

Sector Officers

PIP Screening Committee

Development Budget

Management Committee CACC Budget

Steering Committee Treasury/Finance/DNPM/

DPM/DPLGA

Central Agencies Coordinating Committee

(CACC)

Ministerial Budget Committee

(MBC)

National Executive Council (NEC)

Technical & Policy Dialogue

Treasury/Planning/Finance

Budget Circular - Circulated to all Agencies/ Provinces

Budget Screening Committee

Jan

Jun

Aug

Sep to Oct

Nov

1 2

Fiscal and Development Budget Dialogue

Committee approves new list of projects and existing ones for inclusion in the Budget

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7.0 FORMULATION OF PROPOSALS 7.1 All development proposals should be documented in the Project Formulation Document

(PFD) with supporting letters from relevant stakeholders, for technical and/or complex proposals and additional documents such as feasibility studies, scope of works and technical assessment reports should be attached.

7.2 All District proposals should be endorsed by the JDPBPC while the Provincial

proposals should be endorsed by Joint Provincial Planning and Budget Priority Committee (JPPBPC) which are further endorsed by the Provincial Executive Council.

7.3 National Departments and Provincial Administrations will establish their proposal

handling or Pipeline Process where they are able to vet project ideas which should be packaged in the form of Project Identification Documents (PID). Approved PIDs are developed into a Project Formulation Documents (PFD) and submitted to DNPM.

7.4 For those sectors that have sector-wide plans and strategies (Health, Education, Social

Justice, Agriculture, Transport, etc) DNPM has established sector-engagement mechanisms for collectively identifying priorities and key outputs and where applicable for identifying priority projects and programs. In some instances such as the Law and Justice Sector Mechanism that have their own sector-specific screening mechanisms PIDs are approved by Sector Mechanisms and developed into a PFD before they are submitted to DNPM.

8.0 SUBMISSION OF PROPOSALS The following procedures should be adhered to; 8.1 Proposals should be submitted to the Secretary of DNPM before 31 May and a copy

sent to the Development Planning and Programming Division (DPPD).

The technical appraisal of proposals is undertaken by the Development Planning & Programming Division. If the proposal does not meet all selection criteria, the sponsoring agency will be notified accordingly.

Where the proposed project idea is good but substantive information is lacking, the proposal will be passed back to the sponsoring agency or provincial administration for additional improvements.

8.2 Proposals that meet all requirements will be submitted to the Departmental Technical

Screening Committee (TSC) for deliberation and selection. The Committee provides further scrutiny to the technical appraisal and consolidates the proposals.

8.3 After clearing by the TSC proposals will proceed to the DNPM’s Budget Management

Committee for final screening and approval. Projects that will require external financial assistance will be forwarded to the DNPM’s Aid Policy and Coordination Directorate (APCD).

Grant Assistance – The APCD will take the lead in the consultation and

negotiation process with development partners in close consultation with the DPPD.

Loan Financing – The APCD will take the lead role in facilitating the proposal

to Department of Treasury – Loans and Revenue Division.

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All loan requests will be handled by the Department of National Planning and Monitoring in close consultation with the Department of Treasury.

8.4 The Development Budget Management Committee meets in July every year to determine the indicative level of funding required for the following financial year. The indicative funding level will also reflect funding for ongoing projects based on project progress performance reports.

8.5 DNPM submits the draft Consolidated Development Budget submission to the Budget

Screening Committee for consultation with national agencies, statutory bodies and relevant provincial governments.

Figure 2. Project Submission and Approval Process 9.0 APPRAISAL of PROPOSALS 9.1 A rigorous desk top appraisal is conducted by the Development Planning and

Programming Division (DPPD) using the following broad selection criteria (Specific details are contained in PFD forms).

9.1.1 Consistency/ Coherency with national policy and Sector Investment Plan

(SIP): All proposals will be appraised against expenditure priority areas of the MTDS, the Sector Investment Plan, Provincial and District Plans and Country Assistance Strategy. Particular emphasis will be on alignment with key expenditure priorities - Basic Education, Primary Health, Transport Infrastructure Rehabilitation, Income Generation, Law and Justice, HIV/AIDS Prevention, Development oriented Informal Adult Education.

9.1.2 Policy Impact:

All proposals should aim to deliver multiple and long term social and economic benefits which are greater than the cost of investment. An assessment on the relationship between project outputs and overall sectoral indicators will be undertaken to reflect how the project will contribute towards achievement of the overall MTDS development indicators.

Agencies submit project proposals

Sector Coordination Committees

CACC Budget Screening Committee

CACC Approval& Recommen-dations

Donors These are for donor funding

NEC For final approval of Budget

DNPM for Appraisals and Approval

Provinces submits project proposals

j t

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9.1.3 Sustainability:

Assessment of the project proponents’ capacity to absorb the additional responsibility of managing extra budgetary resources in addition to their ongoing responsibilities, recurrent costs and activities. Particular attention will be given to assessment of proponent’s institutional and financial capacity to sustain project activities after the life of the project.

9.1.4 Affordability:

All proposals will be screened against government’s fiscal framework and specific consideration will be given to Government’s capacity to fund the project. In cases where the proposal will require external financing, counterpart requirements in terms of staffing, budget and office of the project should be clearly stated.

9.1.5 Management Capability/Performance:

Proven record of financial and successful project/program management will be an important factor considered in the appraisal process. Assessment of proponents’ management capability to provide financial and physical oversight of activities within the specified budget and specified period will be assessed.

9.1.6 Equity:

Another important criteria for assessing proposals is the need to correct uneven development across the country. High impact economic projects targeting disadvantaged areas or specific disadvantaged groups will be given high priority. As much as possible at least one economic project proposal will be considered per region on an annual basis. Allocations will be based using standard Quality of Life Indicators on the development status of a region, province, district or local area such as the list of Least Developed Districts provided by the NEFC and analysis of levels of funding received, from external and GoPNG sources, over the previous five years.

Priority will be given to less developed provinces and in areas where there has been limited external development funding provided over the years.

9.1.7 Economic and Income Earning Proposals

Must contain realistic cash flow analysis of projected income and expenditure. Standard efficiency and effectiveness criteria such as Return on Investment, Internal Rates of Return, etc will be used to access project feasibility and potential impact.

9.1.8 Cross- Sectoral Issues:

All proposals should include a statement of how the program/project will impact on HIV/AIDS, the environment and on Gender issues. The statement should clearly articulate what the activities are and how the project will assist in the promotion of the campaign against HIV/AIDS and the effect of the intervention on the environment and on gender relations between women and men.

9.1.9 Risk Management All proposals need to undergo a risk assessment to identify the chance of something having a negative impact upon project objectives, measured in terms of consequence and likelihood. Probability Estimates and Risk Ranking Tables exist in current DNPM Project Formulation Document Templates that require all those preparing proposals for PIP funding to undertake an assessment of all likely risks and consequences on activities and the treatment options for each

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prioritized risks. Strategies will need to be devised to move the overall level of risk to lower categories. In cases where the overall level of risk is beyond an acceptable threshold a decision may be taken not to proceed with funding from the PIP. Project sponsors are free in these circumstances to seek alternative means of funding.

9.2 Fixed Commitments (SSG & MOA):

All project projects under the Special Support Grant (SSG) and Mining/ Petroleum Memorandum of Agreements’ (MOAs’) will be screened against the broad PIP criteria and Expenditure Implementation Committee Guidelines under the Oil and Gas Act. SSG and MOA’s must have project proposals submitted annually. All SSG and MOA project proposals will undergo rigorous technical appraisal in close consultation with the Department of Mining and Department of Petroleum and Energy. Approval for all Petroleum MOA project funding will be given by the Expenditure Implementation Committee (EIC) which is the decision-making body established under the Oil and Gas Act.

9.3 Provincial and District Implementation of National Projects/Programs – with the

reconstituting of the National Monitoring Authority (NMA) in the Department of Provincial and Local Government Affairs (DPLGA) into the Provincial and Local Level Services Monitoring Authority (PLLSMA) which is responsible for strengthening implementation and monitoring capacity in sub-national agencies such as Provinces and District Administrations, it is in the best interest of proponents of proposals for activities outside of the major urban centres to discuss with PLLSMA their proposed implementation and monitoring modalities.

9.4 Program Dialogue - In this stage of project/program development, the DNPM’s Development Planning and Programming Division may conduct physical inspection of proposed sites and consult with National Agencies, Provinces, proposed beneficiaries and other stakeholders to validate and consolidate proposals. The process is intended to verify and assess proposed delivery systems and processes, validate statements made in proposals and remove potential bottlenecks that may impede the smooth working of the project/program.

10.0 DISBURSEMENT PROCEDURES 10.1 Drawdown of funds will proceed according to the following procedures;

10.1.1 For projects appropriated into the annual Development Budget – respective national agencies/ provincial administrations will be requested to submit annual implementation plans and cash flows based on allocations indicated in the National Budget approved in the November sitting of Parliament.

All project/program cash flows and implementation plans must be submitted to the Development Monitoring and Evaluation Division (DMED) by 31st November of each year.

In the initial instance, where there are requirements for movement of funds within projects, the respective Department is expected to submit an approved Secretary’s Advance to the Department of National Planning for appropriate vetting and action. This should be done by the 31st November of each year.

10.1.2 A consolidated development budget cash flow is submitted to the Department

of Treasury – Budget Division in December. All warrant releases and cash

remittances to agencies, provinces and statutory bodies will be based on the cash flow requirements submitted. Also, the Development Monitoring and Evaluation Division (DMED) checks the submitted cash flows and implementation schedules against the approved Project Formulation Document (PFD) and Project Design Documents (PDDs) to ensure that deliverables are on target and assumptions remain relevant.

Disbursement for all loan funds will be in accordance with the financial implementation plan of each loan project as agreed to under individual Loan Agreements. Disbursements are done by the Department of Finance in consultation with DNPM and the respective government agency implementing the Project.

The disbursements for all grant-financed projects are determined through the

various development agreements/treaties entered into between the GoPNG and the relevant bilateral or multilateral donor.

The consolidated cash flow submitted to the Department of Treasury is

expected not to be changed for at least 6 months.

10.1.3 During the year draw-downs or changes to agreed appropriations for projects and programs will be subject to quarterly performance reviews of the Development and Recurrent Budgets. Particular emphasis will be given to positive project performance during the quarters and the justification provided for requests for additional funds.

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IMPLEMENTATION PHASE

Figure 3: A n n u a l D i s b u r s e m e n t a n d R e v i e w P r o c e d u r e a n d C y c l e

Implementing Agencies submit Cashflows and Implementation Plans

DNPM – DMED Vets and Consolidates

Treasury (Budgets) Verifies and Releases

Monthly Warrants Accordingly

Finance (FED) Verifies Loan Requirements

& submits to Financier for Disbursements

Project Offices (Loans)

Submits to Finance

Department for Drawdowns

Only For Loan Component

Nov

Dec

Jan

Mar

Jun

Sep

1st Quarter Budget Review

2nd Quarter /Mid Year

Budget Review

3rd Quarter Budget Review

Note : The 4th Quarter Budget Review is Conducted In December

Recommendations from this MYBR is used for decision making in the next years Budget.

CACC receives reports and provides recommendation and guidance

MBC Final approval and recommendation

Recommendations provide direction for further budgetary actions by Government.

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11.0 MANAGEMENT COMMITTEES

11.1 An essential element of the implementation of the Public Investment Program is the

use of Management Committees to facilitate coordination and implementation. 11.2 There are various committees through which the DNPM’s Development Planning and

Programming and Development Monitoring and Evaluation Divisions are able to work through or coordinate to manage the multi-faceted aspects of programs and projects. The key ones, also depicted in Figure 4 of this Guideline, are;

1. DNPM Technical Screening Committee

Membership: Chairperson – First Assistant Secretary – Development Planning & Programming Division DPPD will provide secretariat to the committee. Meetings are conducted monthly.

Members: • Development Planning & Programming Division - AS (Infrastructure), AS

(Economic), As (Law & Justice/Governance) and As (Social) • Development Policy & Research Division – AS (General Policy), AS (Economic

Policy) • Development Monitoring & Evaluation Division – AS (Economic), AS

(Infrastructure), AS (Social) • Aid Coordination & Management Division – AS (bilateral), AS (multi-lateral) • Regional Manager – District Program

Terms of Reference: • Assess project proposals based on technical appraisal information and make

recommendations to the DNPM Development Budget Management Committee. • Provide an overall PIP summary and brief to DNPM Budget Management

Committee. • Liaise and provide guidance to DPPD on issues arising from proposals.

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2. DNPM Development Budget Management Committee Membership

Chairperson – Deputy Secretary (Public Investment Program)

Development Monitoring and Evaluation to provide secretarial support to the Committee and meetings should be conducted monthly.

Membership: FAS - Development Planning and Programming FAS - Development Policy and Research FAS - Development Monitoring and Evaluation Director - Aid Coordination and Management Director - Finance and Administration and Director - District Provincial and District Programs

Assistant Secretaries should be alternate members at the discretion of the respective FAS.

Terms of Reference • Assess and decide on development budget requirements for selected

projects/programs. • Coordinate implementation of Development Budget in terms of cash flows and

reallocation of resources in the Development Budget. • Endorse all requests on movement of funds from projects. • Liaise and provide guidance to DPRD screening committee. • Advise Secretary and Minister on total development budget framework. • Advise on development budget requirements to Dept of Treasury and Budget

Screening Committee. 12.0 MONITORING AND EVALUATION 12.1 Effective monitoring and evaluation of the public investment program is dependent

upon (a) well prepared proposals, (b) clearly defined activities, (c) achievable and measurable output indicators and performance milestones, (d) clearly defined linkages with MTDS outcomes and goals, (e) an effective M&E System defined in the PFDs and established in DNPM to allow for effective monitoring of programs and projects, (f) an effective communication and reporting system to enable early identification of and response to bottlenecks, and (g) the capacity to conduct physical monitoring as well as on-going and ex post evaluations to derive lessons learnt from the operation of the PIP.

12.2 Guiding Principles of M&E of the PIP are;

12.2.1 The Monitoring & Evaluation of the PIP leads and coordinates existing and

relevant M&E systems and processes in Government and with donor partners to ensure a coordinated response for measuring the inputs, outputs and outcomes of the PIP.

12.2.2 Agencies, donors and private sector partners implementing or funding

government projects and programs may establish their own M&E systems

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consistent with their own internal requirements. This information will need to be shared within DNPM to feed into the M&E function of the PIP.

12.2.3 The monitoring and evaluation of sectoral indicators of the PIP, in accordance

with sector plans and strategies and also addressing sector outcomes consistent with MTDS priorities.

12.2.4 The monitoring and evaluation of the sector indicators under the PIP are

practical and relevant in the growth and development of the country 12.2.5 Achieved milestones and indicators realized from the M&E of the PIP, and the

lessons learnt become useful for decision making for policy and program development and improvement in internal PIP processes.

12.2.6 DNPM coordinates the monitoring and evaluation of programs and projects

through sector mechanisms established for the purpose of the Public Investment Program. Sector consultations may be used to help identify appropriate performance indicators for M&E purposes.

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12.3. Results and Implementation Monitoring and Evaluation

12.3.1 DNPM operates a Results-based Monitoring and Evaluation Framework that is based on the model shown in Figure 3.

Figure 4: M&E Conceptual Framework

Implementation Monitoring and Evaluation

12.3.2 The essence of the Results-based M&E Model is that DMED is responsible for Monitoring Implementation depicted in the lower half of the model, whereas monitoring of Outcomes and MTDS Results are the responsibility of the MTDS Performance Management Framework (PMF), managed by the Development Policy, Research and Strategic Studies Division of DNPM. Monitoring of Implementation and Evaluations at the sub-national level is the responsibility of PLSSMA which reports regularly to DNPM

12.3.3 Monitoring of aid-funded programs and projects is done concurrently by the Aid Policy and Coordination Directorate (APCD) and the Monitoring and Evaluation Division. The APCD is responsible for soliciting and coordinating comments from the various divisions of DNPM on donor monitoring reports and relaying to various stakeholders the department’s feedback to donor reports and studies. DMED will incorporate donor monitoring reports,

Project Based Monitoring and Evaluation

INPUTS OUTPUTS

Program/Policy Based Monitoring and Evaluation

1. Sector Monitoring Teams 2. Mid Term Reviews 3. PIP Performance Review

(every 2 Years) 4. Sector Teams/Secretariats

1. Project Specific Monitoring and Evaluation Teams 2. Site/Field Visits 3. Quarterly Budget Reviews 4. Budget Administration Unit 5. Special Intervention Progs.

Consolidation of data and Information to support and feed into Policy Monitoring Reports

Policy Performance Reports 2 Year PIP Performance Reports Quarterly Performance and Budget Reviews Continuous update of project based reports Effective Budget Admin.

OUTCOMES

- FINAL - INTERMEDIATE

MTDS RESULTS

MTDS PERFORMANCE MANAGEMENT FRAMEWORK

(PMF)

REPORTING TO INTERNAL & EXTERNAL

STAKEHOLDERS

Monitoring of sub-national programs and projects conducted by PLLSMA which liaises closely with DNPM and submits its reports to DNPM

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including lessons learnt, into its quarterly and six monthly monitoring reports to CACC and to Parliament as a requirement of the Fiscal Responsibility Act (2006).

12.4 MONITORING AND REPORTING PROCEDURES

12.4.1 Project Cycle

Agreed performance indicators detailed in approved Project Formulation Documents (PFDs) and Project Design Documents (PDDs) will be used to monitor and evaluate on an ongoing basis project implementation progress and the achievement of program/project objectives.. DPPD will be responsible for system design and ensuring that program/project proposals build-in and maintain adequate M&E systems. DMED will be responsible for monitoring compliance with PFDs and PDDs, site inspections, carrying out beneficiary surveys and impact assessment and disseminating results. Results of the M&E would be used to regularly update the Program/project Implementation Plan.

12.3.2 Monitoring Reports produced by DNPM are presented to the CACC. These

help to identify implementation bottlenecks and sectors that are falling behind and those that are performing well. Where necessary, these reports are presented to the Ministerial Budget Committee (MBC) for further action, direction and/or endorsement. Under the Fiscal Responsibility Act (2006) DNPM must submit six monthly reports on implementation of the PIP to Parliament where the report may be subjected to Parliamentary scrutiny and debate. The reports also recommend steps to improve deficiencies found in the implementation of programs/projects and lessons learnt.

12.3.3 All quarterly reviews of the Budget (Development and Recurrent) are

conducted after every three months by the Departments of Finance, Treasury and DNPM. Project Managers and Departmental/Provincial Administrators and Agency Heads are expected to attend and participate in these reviews.

12.3.4 Site Visits and/or Physical Inspections

The purpose of site visits is to inspect physical progress of projects as well as hold discussions with project managers to obtain first–hand reports of implementation issues.

12.3.5 Consequence of Non Performance and Adherence to Compliance

The DMED may, through the day to day assessment of projects and programs (a) recommend to the Department of Treasury the withholding of the release of warrants to program/project proponents for unsatisfactory reporting, non compliance with procurement procedures or unreasonable implementation delays, and may if warranted recommend the complete withdrawal of funding, and (b) provide recommendations to the CACC for further action.

12.3.5 Reporting on Performance of the Development Budget and PIP

Reports are developed based on the need for Government and the wider public to be informed of the progress and performance of the Development Budget and the Public Investment Program. It is essential that when reports

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are timely, and are able to show the performance of the Public Investment Program and the Development Budget in any given period.

The Department provides the following;

(1) At the end of each quarter, performance of the implementation of the Development Budget is reviewed and a report compiled that goes to the CACC and donors. Budgetary and program decisions can be taken from recommendations of these quarterly reports

(2) In the middle of the year, a Mid Year Budget Implementation Report is

compiled and circulated to Government and NEC. This report provides an update on the performance of the Development Budget in the 6 month period.

The report guides the Government in its decision making for next years budget.

(3) At the end of each mid term (i.e 3 year period), a PIP Performance

Report is compiled and provided for information to the Government and stakeholders.

This report provides an overview of the performance of annual budgets under the PIP and indicates trends in sector developments during the mid term.

(4) Sector Investment Program Performance Reports. At the end of each

mid term, SIP Performance Reports are also compiled tracking the performance of the SIPs of Government and their impact on each of the sectors.

12.4 EVALUATIONS

12.4.1 Due to staffing and resource constraints DNPM is able to conduct two reviews of programs and projects in any one year. Programs for review will be decided by the Development Budget Committee, chaired by the Deputy Secretary PIP Wing. These internal evaluations will be supplemented by those conducted from time to time by donors. All evaluation reports will be circulated to the audience described in 12.3 above as well as within DNPM and to other stakeholders including Departments of Finance, Treasury, CACC, PLLSMA and implementing agencies. Lessons learnt about development impact and internal processes will be given active consideration by all divisions of the department.

12.4.2 Evaluations may be outsourced by the Department to the private sector and

research institutions. Terms of Reference will be developed by the Department for this purpose.

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