CDC - Preliminary Draft for Discussion Only

Preliminary Draft for Discussion Only

National Operational Guidelines for Development Cooperation

Terms of Reference for Preparation of Guidelines

for the

Government-Donor Working Group on Partnerships

Phnom Penh

February 2003

Draft

Robert S. Griffin

Consultant

Table of Contents

I.

II.

III.

Introduction

Background

Moving Forward

Modules for Preparation of National Operation Guidelines

Page

2

2

4

8

Preparation of National Operational Guidelines for Development Cooperation

Introduction. This report provides background information in regard to the proposed development of harmonized national operational guidelines for development cooperation, proposes a process for moving forward with development of the guidelines, and presents draft terms of reference for substantive consultant support to the preparation of the guidelines.

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I. Background.

Commitment to Harmonization. The Royal Government of Cambodia (RGC) is committed to improving the management of development cooperation programs by simplification and harmonization of the administrative rules and procedures for development activities that are required by its external partners. The Government's position is set out in its paper, "Cambodia's Approach to Tackling the Harmonization Issues" (CDC, February 2003) and earlier working papers. Senior Minister Mr. Keat Chhon reinforced this position in his remarks to the High Level Forum on Harmonization convened in Rome, 24-25 February 2003. Complex and varying procedures for development cooperation create an extraordinary burden on the limited capacities of Government implementing agencies. As World Bank President James Wolfensohn notes, "By harmonizing aid policies and procedures, aid donors could save developing countries' time and money, speed the delivery of assistance and make it much more effective and efficient."

The Government recognizes that harmonization a large problem that is not limited to Government-donor relations: there are harmonization issues between donor and donor and among agencies of the Government.

In addition, in order to maximize the value of external assistance, the Government is promoting a harmonized and coordinated approach to the creation of national capacities to plan and manage development cooperation.

By reducing transaction costs and enhancing the efficiency and effectiveness of development cooperation, simplification and harmonization should benefit both the Government and its development partners.

Endorsement of OECD/DAC Approach. As the basis for action, the RGC strongly endorses the guidelines and criteria for building partnerships and for capacity development activities that were agreed to by all donor agencies and governments at the OECD/DAC Conference in 1999. These guidelines, subsequent work undertaken by the OECD/DAC, and parallel efforts undertaken by the multilateral development banks provide a number of entry points and models for national efforts on simplification and harmonization. These initiatives have been supplemented and supported by resolutions and activities of the UN system.

Specific areas where the OECD/DAC has developed good practice reference papers include:

donor cooperation
country analytical work
public financial management
reporting and monitoring
financial reporting and auditing
and, delegated cooperation

In addition, working groups sponsored by multilateral development banks are developing harmonized procedures in the following areas:

financial management and analysis
procurement
environmental assessment
and, evaluation.

Need for Country Level Adaptation. The OECD/DAC recommends further action and adaptation of its guidelines and best practices at the country level to ensure country level commitment. In Cambodia, the multilateral development banks have been leading the way with efforts to harmonize procurement and financial management procedures for the use of loan proceeds. Other donor organizations have been actively promoting collaboration on sector-wide approaches in education and health. These activities, however, only scratch the surface of the possibilities for harmonization and simplification. Furthermore, many donor agencies in Cambodia continue to insist on agency-specific procedures thereby perpetuating procedural complexity and the related administrative burdens on the Government implementing agencies.

Government-Donor Working Group on Partnerships. At the Sixth Consultative Group Meeting, the RGC proposed the establishment of a new Government-donor working group to address partnership issues directly. The Meeting endorsed the establishment of the Government-Donor Partnership Working Group to be chaired by the Government with two donor representatives as vice chairs. The Government designated the Secretary General of CDC/CRDB to be chairman of the Partnership Working Group. UNDP and Japan have been designated as the Vice Chairs representing multilateral and bilateral donors respectively. The membership of the Working Group also includes ADB, Australia and the United Kingdom.

Need for "National Operational Guidelines". The Government-Donor Partnership Working Group has proposed to develop "National Operational Guidelines for Development Cooperation in Cambodia" to address the harmonization and simplification issues. These guidelines would cover the entire program cycle for development activities. They would take into account Government policies and procedures and embody international standards and best practices, adapted as necessary to the realities of local conditions. The proposed guidelines would establish a harmonized approach to the planning and implementation of all development activities regardless of donor or source of funds. A sub-group of the Government Donor Working Group on Partnerships has been created to address the development of the guidelines.

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II. Moving Forward

Addressing Basic Issues.

To move forward with the development of National Operational Guidelines, the sub-group needs to reach consensus on some basic issues of taxonomy, definition, and priority.

What program cycle will the guidelines follow? All development cooperation agencies have some kind of program cycle. These differ in the number of stages and in the terminology used to describe the stages. What program cycle will be the basis for the National Operational Guidelines? A model program cycle is presented for purposes of discussion in Exhibit 1 below.

Exhibit 1

Stages in the Program Cycle: A Model

Preamble: Cambodia's National Development Plans and Strategies

Sectoral Analytical Work
Establishment of Sectoral Objectives or Results Framework
Identification of Possible Development Cooperation Interventions within Sector
Establishment of Sectoral Priorities
Joint Resource Mobilization Strategy for the Sector
Detailed Formulation
Environmental Impact Assessment (if required)
Appraisal and Approval
Management of Implementation

Principles of results-based management
Work planning and revision
Budget preparation and revision
Input mobilization and administration
procurement
personnel
Using performance measures
Financial management and reporting
Non-financial reporting

Review of Progress (incorporating monitoring)
Audit (if required)
Final Review
Evaluation (if any)

What is a "guideline"? Is a guideline a principle, a procedure or an example of "good practice"? Is a guideline binding or merely recommended? What level of detail should the guidelines incorporate? The sub-group will need to reach consensus on parameters for guidelines in order to guide the work on substantive consultants.

In general, the Guidelines should achieve the basic goal of harmonization of Government and donor rules and procedures. They should be easy to understand, as brief as possible, and well organized. They should be written at a level of detail that ensures accountability and transparency (but exactly what level that is must be defined by a consensus of the users).

What are the priority areas for initial work on the Guidelines? The Government has proposed that attention be focused on the following four priority areas:

Identification, planning and formulation of development programs
Prioritization of development programs
Resource mobilization and negotiation of financial arrangements
Management of implementation of development programs

An annotated outline based on these priorities is presented as Exhibit 2 below.

Exhibit 2

Four Government Priority Areas for National Operational Guidelines and Related Stages in the
Program Cycle

Identification, planning and formulation of development programs

Sectoral Analytical Work
Establishment of Sectoral Objectives or Results Framework
Identification of Possible Development Cooperation Interventions within Sector
Detailed Formulation
Environmental Impact Assessment (if required)
Appraisal and Approval

Prioritization of development programs

Establishment of Sectoral Priorities

Resource mobilization and negotiation of financial arrangements

Articulation of a Joint Resource Mobilization Strategy for the Sector

Management of implementation of development programs

Management of Implementation
Principles of results-based management
Work planning and revision
Budget preparation and revision
Input mobilization and administration
procurement
personnel
Using performance measures
Financial management and reporting
Non-financial reporting
Review of Progress (incorporating monitoring)
Audit (if required)
Final Review
Outcome Evaluation

This outline incorporates all the stages of the program cycle as sub-points under the Government four priority areas. As the exhibit illustrates, the Government's priorities include all the stages of the model program cycle. Some further work to determine initial priorities for guideline development is necessary. The sub-group can set priorities by determining the desired order for the proposed substantive modules for guideline development (see section III.). In general, this work should proceed in accordance with local perceptions of needs and of the immediate benefits from the development and implementation of harmonized guidelines.

In addition to identifying the four priority areas, the Government has identified specific practices that it would like to see addressed in the guidelines. These include:

a harmonized approach to capacity development
joint Government-donor missions
joint Government-donor program formulation
long-term commitment by donors
and, flexible program and project design approaches.

These issues must be addressed in the guidelines at appropriate places in the stages of the program cycle.

Commencing Development of the Guidelines.

Agreeing on Principles. This report recommends commencing the development of the guidelines with the statement of agreed principles on harmonization and simplification. These principles would include both those developed on a global basis by OECD/DAC and the multilateral development banks and those developed by the Government-Donor Working Group on Partnerships in Cambodia. The review of these basic principles should focus attention of the partners on their commitment to harmonization and simplification and the large amount of discussion and consensus seeking that lies ahead.

Methodology for Development of the Substantive Guidelines. Section III provides draft detailed terms of reference for the preparation of the guidelines as a series of modules of related subject matter. The recommended modules have been created in an effort to define feasible and discrete work assignments for international and national consultants. In other words, the development of each module can be undertaken as a separate piece of work. As noted above, the phasing of production of the modules – that is, the order in which they are produced - is a matter for the Government-donor Working Group on Partnerships to determine.

The preparation of draft guidelines will involve a series of international and national consultancies by specialists in the respective areas. These consultancies will include extensive consultation with all concerned partners and the drafting of substantive guidelines for review. The consultants' approach to their assignments will have to be pragmatic and flexible, responding to opportunities and obstacles identified by the partners. The consultants will also have to be sensitive to the requirements of different kinds of development cooperation activities. In addition to bringing substantive expertise to the drafting of guidelines, the consultants will also facilitate review processes, determine areas where consensus appears attainable and finalize guidelines in accordance with apparent consensus for final review and endorsement.

Need for Engagement. The production of a complete set of useful guidelines will require not only high quality consultant outputs, but also full engagement of the Government and donor partners in consultations, in the review of draft material, and in the process of reaching consensus on final versions of the guidelines.

Managing Expectations. The process of developing harmonized and simplified guidelines will be time-consuming and difficult. Success is likely to be piecemeal and incremental rather than comprehensive. The participants in the process will need patience and persistence. They will accept that Rome will not be built in a day, but that half a loaf may be better than none.

Management Arrangements.

A lead consultant with appropriate experience and skills will be responsible for the day to day management of substantive work of consultants and will facilitate consultative and consensus-building processes. The lead consultant will handle administrative work regarding the scheduling, logistics, recruitment and administration of consultants. He/she will act as the overall editor of the guidelines to ensure consistency in form, style and substance. He/she will interact with the Government focal point for the development of the National Operational Guidelines on a regular basis.

III. Modules for Preparation of National Operational Guidelines

Note: The modules are presented below, after Module 1, in the order of the program cycle presented in Exhibit 1. In some cases, closely related elements have been combined into a single assignment. In other cases, a large element of the program cycle has been divided in two. As noted above, the Government-Donor Working Group on Partnerships will determine the actual phasing and priorities for work.

Module 1. Guiding Principles for Development Cooperation in Cambodia

"…the RGC presented to its development partners at the 4^th Consultative Group Meeting in May 2000 in Paris a draft discussion paper, 'A New Development Cooperation Partnership Paradigm for Cambodia'…. The new paradigm has its foundation the principles that are being advocated by OECD/DAC and other international fora to improve the effectiveness of development cooperation programs."

Scope of work. The purpose of this module of the guidelines is to elaborate a clear statement of all principles for development cooperation that have been accepted by the OECD/DAC at the global level and by the Royal Government of Cambodia at the national level. This exercise will initiate the overall work on the development of the National Operational Guidelines by ensuring that all participants are fully informed of the principles to which the donor agencies and the Government have subscribed at both the global and local levels.

The consultant will prepare and circulate a harmonized statement of principles with brief explanatory text. The consultant will take the feedback from Government and donors into account in finalizing the statement of principles. The final version of the statement will be presented at a meeting of the Government-Donor Working Group on Partnerships for its official endorsement.

Tasks to be undertaken by the consultant. In the preparation of the harmonized statement of principles, the consultant should address the following issues:

How can the global OED/DAC principles and those enumerated by the Government-Donor Working Group on Partnerships be integrated?
Do the principles require explanation or examples?
Are there other principles that could or should be added to the list for consideration by the participants?

References.

Harmonizing Operational Policies, Procedures and Practices: A Synthesis of Institutional Activities (World Bank/DAC/OECD, February 2003)
Building Partnerships for Development: An Update. RGC/CDC/CRDB. (June 2002)
Cambodia's Approach to Tackling the Harmonization Issues. RGC/CDC. February 2003
Remarks of Senior Minister Keat Chhon, RGC, to the World Bank-OECD/DAC High Level Forum on Harmonization. February 2003.
Good practice paper on development cooperation (DAC/OECD)

Qualifications for consultant. The consultant preparing the statement of principles should be the lead consultant for preparation of the guidelines. As such, he/she should have the following experience and qualifications:

Extensive experience with development cooperation policies and procedures of various donors and Governments;
Firm grasp of international standards and best practices in development cooperation procedures;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in development cooperation activities.

Module 2: Sectoral Analytical Work

"Ïn Cambodia,…we are pushing ahead with the implementation of sector wide programs in key areas, such as education and health…the RGC would like to see a strengthened joint effort by the Government and interested donors in the processes of outlining sector strategies and policies…"

Scope of work. The purpose of this module of the guidelines is set out practices and procedures for collaboration on sectoral analytical work. The Government sees development cooperation partnerships as "managed relationships that facilitate the achievement of sectoral and thematic outcomes through coordinated and more formally integrated activities..." In other words, the primary focus of development cooperation analysis and planning should be at the sectoral or thematic level. The development of a harmonized approach to sectoral analytical work should encourage joint analytical efforts, consensus-building on sectoral issues, and reference to a common set of findings. At the same time, the donor tendency to conduct new analyses for each new activity may be reduced.

The consultant will prepare and circulate draft guidelines to Government and donors for review and will take the feedback into account in finalizing the guidelines. The final version of the guidelines will be presented at a meeting of the Government-Donor Working Group on Partnerships for its official endorsement.

Tasks to be undertaken by the consultant. The consultant should ensure that this chapter of the guidelines on sectoral analytical work for development cooperation activities includes:

Appropriate utilization of broader frameworks: Socio-Economic Development Plan (II), Poverty Reduction Strategy, and the Millennium Development Goals
Explanation of the rationale for a sectoral approach for detailed analytical work
Explanation of the use of analytical work for both policy advice as well as project identification
The use of joint, collaborative processes between Government and participating donors in planning, data collection, and analysis
Recommended practices for developing national capacity for analytical work
Possible arrangements for donor-donor collaboration in supporting data collection and analysis
The possibility of creation of shared data bases
The application of international standards in research and analysis methodology
Processes for participation of intended beneficiary groups that are actively encouraged
Consensus building strategies during analysis and review of findings to seek agreement on the nature of the underlying problems that may be addressed by development cooperation activities
Special emphasis in analytical work on institutional capacity issues in the sector
The application of similar approach to cross-sectoral or thematic issues
The inclusion of mechanisms or processes for monitoring changes in the sector and updating analyses.

References.

Good practice paper on country analytical work (DAC/OECD)
Agreed common approach note on financial analysis (MDBs)
Country analytic website: www.countryanalyticwork.net

Qualifications for consultant. The consultant preparing this module of the guidelines on the sectoral analytic work for development cooperation activities should have the following experience and qualifications:

Extensive experience with the analytical models of various donors, particularly the multilateral development banks;
Firm grasp of international standards and best practices in analytical work;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in the analytical work.

Module 3: Sectoral Objectives and Priorities

"These principles (for building development cooperation partnerships) include:

A common vision and shared objectives firmly rooted and based on national and sectoral development objectives, with consensus reached on a mutually agreed set of policy directions, implementation strategies, results and expected outcomes."

Scope of work. The purpose of this module is to set out guidelines for the establishment of sectoral objectives, the identification of possible development cooperation activities, and the establishment of sectoral priorities. Objective-setting and project identification will be done jointly by the Government and concerned development cooperation agencies. Definition of sectoral priorities will be done by the Government. All of these processes should be based on the analytical work done for the sector.

Tasks to be undertaken by the consultant. The consultant should ensure that this chapter of the guidelines takes into account the following:

In regard to objective setting:

Its purpose is to establish shared goals and a coherent framework for participation of Government and donors in the sector
Objective setting should be a joint process with donors led by the concerned sectoral agencies of Government
The sectoral objectives should take into account national objectives stated in SEDP II, the PRSP, and the Millenium Development Goals
Objectives need to be clearly related to the facts revealed by sectoral analytical work
Objectives should be stated as results to be achieved and include performance indicators

In regard to program/project identification:

Programs or projects should be identified to achieve sectoral goals
Programs or projects should be justified by sectoral analytical work
Identification should be a consultative process between Government and donors
Programs or projects may be categorized as 1) capacity development, 2) infrastructure and 3) service delivery or budgetary support
Initial donor-donor consultations may occur in regard to collaboration on identified programs or projects

In regard to priority setting:

Priority-setting may occur at the level of sectoral results or objectives or at the level of identified programs or projects
Priority-setting must take into account existing priorities in the Public Investment Plan (PIP)
Priority-setting is a national responsibility
Various methodologies for priority setting should be considered for application in Cambodia

References.

Poverty Reduction Strategy Paper
Socio-Economic Development Plan (II)
Millennium Development Goals for Cambodia
A possible model for priority setting: The Sectoral Efficiency and Effectiveness Review (SEER) process used by the Government of the Philippines, National Economic Development Authority (NEDA)

Qualifications for consultant. The consultant preparing this module of the guidelines should have the following experience and qualifications:

Firm grasp of best practices in the results-based management and their application in development cooperation;
Substantive expertise in various processes for objective setting, project identification, and priority setting;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in the planning of development cooperation activities.

Module 4: Joint Resource Mobilization Strategy

"…Resource mobilization for prioritized development programs…is an area where close collaboration between the Royal Government and its external partners will continue to be a high priority."

Scope of work. The purpose of this module is to set out guidelines for a joint Government-donor strategy for resource mobilization. The strategy should focus on the resource requirements for unfunded sectoral priority programs or projects. The uniqueness of the strategy will lie in the sector-wide approach, the targeting on sectoral priorities, the relationship of sectoral to national goals and MDGs, and the coordinated participation of all concerned donors. The guidelines should present a model strategy for resource mobilization on a sectoral or thematic basis.

Tasks to be undertaken by the consultant. The consultant should ensure that this chapter of the guidelines takes into account the following issues:

The Government's desire to maximize efficiency in resource mobilization and allocation by using a comprehensive approach to an entire sector or thematic area;
The importance the Government attaches to the programs and projects that it has determined to be sectoral and thematic priorities; (The process used for priority setting might be described in the strategy.)
The strategy should coincide with the sectoral and thematic objectives that have been jointly agreed by the Government and the concerned donors.
The strategy should explain the benefits foreseen from the use of mobilized resources, particularly the affects on the intended beneficiaries of the development cooperation activities.
The strategy should attempt to link Cambodia's sectoral and thematic priorities to broader global interests of the donor agencies.

Qualifications for consultant. The consultant preparing this module of the guidelines for the preparation of a joint sectoral resource mobilization strategy for development cooperation activities should have the following experience and qualifications:

Extensive experience in resource mobilization for development cooperation activities and familiarity with donor funding priorities;
Firm grasp of benefits of the sector-wide approach to development;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience with development cooperation activities in Cambodia.

Module 5. Detailed Formulation

"…the RGC would like to see a strengthened joint effort by the Government and interested donors in the processes…at the sector program formulation and design stage..."

Scope of work. The purpose of this module of the guidelines is to set out a simplified and harmonized approach to detailed formulation of development cooperation activities that would be acceptable for use by the Government and all donors. The consultant will review a wide range of Government and donor formulation practices and procedures in order to select a set of harmonized good practices that are appropriate for the Cambodian context. The level of detail of these guidelines will be determined by consensus of the participants.

The consultant will circulate draft guidelines to Government and donors for review and will take the feedback into account in finalizing the guidelines. The final version of the guidelines will be presented at a meeting of the Government-Donor Working Group on Partnerships for its official endorsement

Tasks to be undertaken by the consultant. The consultant should ensure that the chapter of the guidelines on detailed formulation of development cooperation activities includes the following elements:

Standardized or harmonized documentation and processes that all partners agree to use;
Joint Government-donor formulation activities and Government-donor processes that are collaborative in nature;
Validation of proposed development cooperation activities by means of participation of intended beneficiaries in formulation process as and when appropriate;
The end product of formulation will be a draft Government-donor partnership agreement;
The formulation guidelines should focus on results and transparent processes and encourage pragmatic flexibility in implementation achieve results (as opposed to the development of detailed blueprints for implementation);
The formulation guidelines should include specification of management arrangements. Roles and responsibilities should be set out including designation of persons responsible for project management.
The formulation guidelines should include definition of the accountability framework that spells out accountability of the Government and of the partners. The guidelines should describe the reporting requirements and review processes that will be undertaken.
The formulation guidelines should include specification of donor and Government inputs and budgets.
The formulation guidelines should enable donor-donor partnerships by means of MOUs or agreements;
The formulation guidelines should consider the need for unique approaches for various types of development cooperation;
The formulation guidelines should incorporate a harmonized approach to capacity development, as per Government request, including detailed analysis of needs, explicit objectives and performance indicators;
The formulation guidelines consider the possibility of short form documentation and process for small or pilot activities (e.g., below an agreed financial threshold or duration).

References.

Good practice paper on delegated cooperation (DAC/OECD)
Various donor guidelines on project design

Qualifications for consultant. The consultant preparing the module on the detailed formulation of development cooperation activities should have the following experience and qualifications:

Extensive experience with development cooperation policies and procedures of various donors and Governments, particularly in the area of project formulation;
Firm grasp of international best practices in development cooperation procedures for project formulation;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in development cooperation activities.

Module 6: Environmental Impact Assessment

Scope of work. The purpose of this module is to set out guidelines for harmonized Government and donor guidelines for environmental impact assessment. As the multilateral banks have already done considerable work in development of recommended practices in this area, the main task of the consultant will be to consider the needs for any adaptation of the existing guidelines to Cambodia and the applicability of their guidelines for the wider donor group.

The consultant will prepare (adapt) and circulate draft guidelines to Government and donors for review and will take the feedback into account in finalizing the guidelines. The final version of the guidelines will be presented at a meeting of the Government-Donor Working Group on Partnerships for its official endorsement.

Tasks to be undertaken by the consultant. The consultant should ensure that this chapter of the guidelines takes into account the needs for the development, adaptation and application of:

standardized terms of reference, documentation and processes for

environmental impact assessments,
environmental audits,
environmental management plans, and
environmental reporting

References. Common approach papers have been developed for environmental impact assessments in the areas of: areas to be covered; standard terms of reference; environmental audits; environmental management plans, environmental reporting, a pollution prevention and abatement handbook, and capacity building for environmental impact assessment.

Qualifications for consultant. The consultant preparing this module of the guidelines on the environmental impact assessments for development cooperation activities should have the following experience and qualifications:

Extensive knowledge of and experience with the environmental impact assessment procedures for development cooperation activities of various donors and Governments, particularly the multilateral development banks;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in development cooperation activities.

Module 7: Appraisal and Approval

Scope of work. The purpose of this module is to set out guidelines for harmonized Government and donor practices on appraisal and approval of development cooperation activities. The guidelines should streamline these processes in order to minimize delays in appraisal and approval and harmonize approaches so that all proposed development cooperation activities are appraised in a similar manner.

Tasks to be undertaken by the consultant. The consultant should ensure that this chapter of the guidelines takes into account the following issues:

The feasibility of standardizing documentation and processes for appraisal and approval;
The possibility of establishing consultative mechanisms to resolve questions and issues that arise during appraisal and approval;
The feasibility of introducing short-form documentation, shorter appraisal processes, and delegated authority for small or pilot activities (e.g., below an agreed financial threshold or duration).

Qualifications for consultant. The consultant preparing this module of the guidelines on the appraisal and approval processes for development cooperation activities should have the following experience and qualifications:

Extensive experience with the management procedures for development cooperation activities of various donors and Governments;
Firm grasp of various appraisal criteria and decision-making processes used in appraisal and approval of development cooperation activities;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in development cooperation activities.

Module 8: Management of Implementation, Part I

"The Government would also welcome progress by external development partners in simplifying and harmonizing their internal rules and procedures to minimize the extra-ordinary burden on the limited capacities within our implementing agencies…"

Scope of work. The purpose of this module of the guidelines is set out sound practices and procedures for the management of development cooperation activities. Two large areas are excluded from this module, namely, procurement and financial management, which will be treated separately. Given that the need to focus on the intended results of development cooperation is one of the common fundamental principles of the OECD/DAC, the guidelines in this module should emphasize results-based management practices.

Tasks to be undertaken by the consultant. The consultant should ensure that this chapter of the guidelines on the management of implementation of development cooperation activities includes the following elements:

A description of the concept and principles of results-based management;
Standard project management guidelines and procedures covering:

work planning and revision,
budget planning and management,
personnel recruitment and administration,
performance measurement, and
non-financial reporting;

In regard to project personnel policy, the guidelines should enunciate a uniform policy on the payment of supplements and other benefits to Government personnel, taking into account the planned implementation of the Priority Mission Groups (PMG) approach for the payment of incentives to key Government pesonnel;
Procedures for the documentation and dissemination of project learning by project management;
Management requirements for information and communication technology.

Qualifications for consultant. The consultant preparing this module of the guidelines on the management of implementation of development cooperation activities should have the following experience and qualifications:

Extensive experience with the management procedures for development cooperation activities of various donors and Governments;
Firm grasp of international standards and best practices in development cooperation management, including appropriate information technology;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in the management of development cooperation activities.

Module 9: Management of Implementation, Part 2: Procurement and Financial Management and Reporting

Scope of work. The purpose of this module is to set out guidelines for procurement and financial management and reporting. As the multilateral development banks (MDBs) have done considerable work on harmonization of procedures in these two areas for loan-funded projects, the consultant should first review this material in order to determine its applicability to grant-funded development cooperation.

The consultant will prepare (or adapt) and circulate draft guidelines to Government and donors for review and will take the feedback into account in finalizing the guidelines. The final version of the guidelines will be presented at a meeting of the Government-Donor Working Group on Partnerships for its official endorsement

Tasks to be undertaken by the consultant. The consultant should ensure that this chapter of the guidelines takes into account the following issues:

The appropriateness of procedures designed for loan-funded projects for grant-funded development cooperation;
The differences in donor procurement practices (donor procurement vs. donor funding for Government procurement) and the limitations on harmonization of these methods;
The differences in donor financial management practices (donor vs. Government financial management and reporting) and the limitations on harmonization of these methods;
The appropriate level of detail for national operational guidelines regarding procurement and financial management and reporting;
Management requirements for information and communication technology.

References.

Standardized master documents for procurement (MDBs);
Inventory of relevant international fiduciary standards (MDBs);
Good practice paper on financial management diagnostic work (DAC/OECD);
Good practice paper on financial reporting and auditing (DAC/OECD);
Agreed common approach on financial reporting and auditing (MBDs);

Qualifications for consultant. The consultant preparing this module of the guidelines on the procurement and financial management and reporting for development cooperation activities should have the following experience and qualifications:

Extensive experience with the procurement and financial management and reporting procedures for development cooperation activities of various donors and Governments;
Firm grasp of international standards and best practices in procurement and financial management and reporting, including appropriate information technology;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in the management of development cooperation activities.

Module 10. Review of Progress

"…the RGC would like to see a strengthened joint effort by the Government and interested donors in the processes of…conducting joint reviews and monitoring of the implementation of the sector programs."

Scope of work. The purpose of this module of the guidelines is set out sound practices and procedures for review of progress of development cooperation activities. This module of the guidelines will subsume the concept of "monitoring". Some harmonization efficiencies and reduction of administrative burdens should be attainable by focusing partner review activities on clear "review of progress" reports and events in lieu of ad hoc donor monitoring missions.

Tasks to be undertaken by the consultant. The consultant should ensure that this chapter of the guidelines on the review of progress in the implementation of development cooperation activities includes:

Standard review processes that have been defined and agreed to during detailed formulation;
Review processes that are based on review of management reports on progress towards the production of planned results;
Review processes that solicit feedback from intended beneficiaries of the development cooperation activities;
Periodic review events scheduled by mutual agreement of partners; encouragement of joint missions and joint participation of all partners; (Conversely, ad hoc donor monitoring visits will be discouraged);
Review events that enable partners to provide advice to project management and enable joint decision-making regarding adaptation or revision of the development cooperation activities under review.

References.

Good practice paper on non-financial reporting and monitoring (DAC/OECD).

Qualifications for consultant. The consultant preparing this module of the guidelines on the review of progress of development cooperation activities should have the following experience and qualifications:

Firm grasp of best practices in the results-based management and their application in development cooperation;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in the management or assessment of development cooperation activities.

Module 11: Audit, Final Review, Evaluation

Scope of work. The purpose of this module is to set out guidelines for harmonized Government and donor guidelines for audit, final review and evaluation of development cooperation activities. These three topics have been lumped together as they typically cover much of the same ground though from different perspectives. The consultant will ensure that the guidelines for these three assessment processes describe discrete and independent functions.

Tasks to be undertaken by the consultant. The consultant should ensure that the guidelines for audit, final review and evaluation take into account the following issues:

Audit

Will all activities be subject to audit? If not, should there be standard criteria for the selection of activities to be audited? If so, what should those criteria be?
Should there be standard terms of reference for audits?
Should audits focus on compliance with rules, standards and procedures or should there be value for money audits (performance audits) or both?
Should the criteria and process for selection of auditors be standardized? If so, what should be the selection criteria and process?

Final Review

What should be the scope of the final review by the partners? Presumably the final review would consider the final report by project management and audit report (if any). Anything else? Can there be a standard agenda for final reviews?
What decisions should normally be considered at the final review? Decisions regarding project extension or completion? Decisions regarding follow up to audit findings? Decisions on sharing/replication of project experience? Other decisions?
Are the participants in the final review authorized to make decisions on behalf of their respective agencies?

Evaluation

Should there be standard terms of reference for evaluations? Is it necessary to vary terms of reference to accommodate differences in types of development cooperation activities, e.g., for capacity development, infrastructure, or budgetary support activities?
Should the criteria and process for selection of evaluators be standardized? If so, what should be the selection criteria and process?

References.

Good practice paper on financial reporting and auditing (DAC/OECD)
Agreed common approach on financial reporting and auditing (MBDs)
Good practice paper on non-financial reporting and monitoring (DAC/OECD)
Good practice paper on the independent evaluation of public sector projects (MDBs)
Various donor guidelines on evaluation

Qualifications for consultant. The consultant preparing this module of the guidelines on the audit, final review and evaluation of development cooperation activities should have the following experience and qualifications:

Extensive experience with the audit and evaluation procedures for development cooperation activities of various donors and Governments;
Firm grasp of international standards and best practices in audit and evaluation of development cooperation activities;
Strong written and oral communication skills in English;
Experience in the preparation and editing of manuals, guidelines and procedures;
Work experience in Cambodia in the audit or evaluation of development cooperation activities.

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