THIRD-PARTY COST-SHARING AGREEMENT BETWEEN
THE UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP)
AND INTER-AMERICAN DEVELOPMENT BANK (IADB)
WHEREAS Inter-American Development Bank - IADB hereby agrees to contribute funds to UNDP on a
cost-sharing basis (hereinafter referred to as “the Contribution”) for the implementation of Project Award N.
/Output no.
(hereinafter referred to as “the Programme/ Project”), as described in the Project document
“Strengthening state and municipal government capacities to enhance implementation of IADB development
projects ” (Annex A to this Agreement).
WHEREAS UNDP is prepared to receive and administer the contribution for the implementation of the
project,
WHEREAS the Government of Brazil has been duly informed of the contribution of IADB to the project,
NOW THEREFORE, UNDP and IADB hereby agree as follows:
Article I. Scope and Objective
The objective of this agreement is to enhance state and municipal capacity for the implementation of
development projects funded by IADB in Brazil timely and efficiently by means of technical assistance works to
be performed by UNDP in accordance with the Project Document attached. If necessary, a project revision can
be signed by UNDP, with IADB’s non objection, to extend project validity and/or adjust project activities and
budget.
Article II. The Contribution
1.(a) IADB shall, in accordance with the schedule of payments set out below, contribute to UNDP the amount
of USD 160,500 (one hundred and sixty thousand five hundred dollars). The Contribution shall be deposited
in the Banco do Brasil - 001, bank account 60746-0. at the Agência Empresarial Brasília (3382/0)1,
1
Please note that the currency of the bank account should be the same as the currency of the contribution
Schedule of Payments
Amount in US dollars
August 20, 2013
USD50,000
October 15, 2013
USD60,500
December 10,2013
USD50,000
(b) IADB will inform UNDP when the Contribution is paid via an e-mail message with remittance
information to contributions@undp.org, providing the following information: donor’s name, UNDP country
office of Brazil (CO), Project
“Strengthening state and municipal government capacities to enhance
implementation of IADB development projects” award no.
– Output
. This information should also
be included in the bank remittance advice when funds are remitted to UNDP. UNDP shall also issue written
confirmation to IADB for receipt of the contribution at the latest 2 weeks after the amount has been
received.
2. The value of the payment, if made in a currency other than United States dollars, shall be determined by
applying the United Nations operational rate of exchange in effect on the date of payment. Should there be a
change in the United Nations operational rate of exchange prior to the full utilization by the UNDP of the
payment, the value of the balance of funds still held at that time will be adjusted accordingly. If, in such a
case, a loss in the value of the balance of funds is recorded, UNDP shall inform the IADB with a view to
determining whether any further financing could be provided by the IADB. Should such further financing not
be available, the assistance to be provided to the Project may be reduced, suspended or terminated by UNDP
after consultation with the IDB.
3. The above schedule of payments takes into account the requirement that the payments shall be made in
advance of the implementation of planned activities. It may be amended to be consistent with the progress
of project delivery.
4.
UNDP shall receive and administer the payment in accordance with the regulations, rules, policies
and procedures of UNDP.
5.
All financial accounts and statements shall be expressed in United States dollars.
Article III. Utilization of the Contribution
1.
The implementation of the responsibilities of UNDP pursuant to this Agreement and the project
document shall be dependent on receipt by UNDP of the contribution in accordance with the schedule of
payment as set out in Article I, Paragraph 1, above.
2.
If unforeseen increases in expenditures or commitments are expected or realized (whether owing to
inflationary factors, fluctuation in exchange rates or unforeseen contingencies), UNDP shall submit to IADB on
a timely basis a supplementary estimate showing the further financing that will be necessary. IADB shall use
its best endeavors to obtain the additional funds required, but IADB does not undertake any formal
commitment to cover the excess of initially allocated funds.
3.
If the payments referred to in Article I, paragraph 1, above are not received in accordance with the
payment schedule, or if the additional financing required in accordance with Paragraph 2 above is not
forthcoming from IADB or other sources, the assistance to be provided to the project under this Agreement
may be reduced, suspended or terminated by UNDP.
4.
Any interest revenue attributable to the Contribution shall be credited to UNDP Account, retained by
UNDP and shall be utilized in accordance with established UNDP procedures.
Article IV. Administration and Reporting
1. Project management and expenditures shall be governed by the rules, regulations, policies and procedures
of UNDP.
2.
UNDP shall provide to IADB the following reports in accordance with UNDP accounting and reporting
procedures.
(a)
From the country office an annual status of project progress for the duration of the
Agreement, as well as the latest available approved budget.
(b)
From UNDP Bureau of Management/Office of Finance and Administration, an
annual certified financial statement as of 31 December every year to be submitted
no later than 30 June of the following year.
(c)
From the country office within six months after the date of completion or
termination of the Agreement, a final report summarizing project activities and
impact of activities as well as provisional financial data.
(d)
From UNDP Bureau of Management/Office of Finance and Administration, on
completion of the project, a certified financial statement to be submitted no later
than 30 June of the year following the financial closing of the project.
3.
If special circumstances so warrant, UNDP may provide more frequent reporting at the expense of
IADB. The specific nature and frequency of this reporting shall be specified in an annex of the Agreement.
Article V. Administrative and Support Services
1.
In accordance with the decisions, policies and procedures of UNDP's Executive Board reflected in its
Policy on Cost Recovery from Other Resources, the Contribution shall be subject to cost recovery for
indirect costs incurred by UNDP headquarters and country office structures in providing General
Management Support (GMS) services. To cover these GMS costs, the Contribution shall be charged a fee
equal to 7%. Furthermore, as long as they are unequivocally linked to the Project, all direct costs of
implementation, including the costs of Implementing Partner, will be identified in the Project budget
against a relevant budget line and borne by the Project accordingly.
2.
The aggregate of the amounts budgeted for the project, together with the estimated costs of
reimbursement of related support services, shall not exceed the total resources available to the project under
this Agreement as well as funds which may be available to the project for project costs and for support costs
under other sources of financing.
Article VI. Evaluation
All UNDP Programmes and Projects are evaluated in accordance with UNDP Evaluation Policy. UNDP
and the Government of Brazil in consultation with other stakeholders will jointly agree on the purpose, use,
timing, financing mechanisms and terms of reference for evaluating a Project including an evaluation of its
Contribution to an outcome which is listed in the Evaluation Plan. UNDP shall commission the evaluation, and
the evaluation exercise shall be carried out by external independent evaluators.
Article VII. Equipment
Ownership of equipment, supplies and other properties financed from the contribution shall vest in
UNDP. Matters relating to the transfer of ownership by UNDP shall be determined in accordance with the
relevant policies and procedures of UNDP.
Article VIII. Auditing
The Contribution shall be subject exclusively to the internal and external auditing procedures
provided for in the financial regulations, rules, policies and procedures of UNDP. Should the annual Audit
Report of the UN Board of Auditors to its governing body contain observations relevant to the Contribution,
such information shall be made available to IADB by the country office.
Article IX. Advertisement of the contribution
1.
One Party shall not use the other Party’s name or emblem, or any abbreviation thereof, in connection
with its business or otherwise without the express prior written approval of the other Party in each case. In no
event will authorization be granted for commercial purposes, or for use in any manner that suggests an
endorsement by one Party of the other Party’s products or services.
2.
IADB acknowledges that it is familiar with UNDP’s ideals and objectives and recognizes that its name
and emblem may not be associated with any political or sectarian cause or otherwise used in a manner
inconsistent with the status, reputation and neutrality of UNDP.
3.
IADB may make representations to its shareholders and internal budget officials as required about the
fact of the contribution to UNDP. Any other use of the UNDP name or emblem, and any other form of
recognition or acknowledgement of the contribution of IADB are subject to consultations between the Parties,
and the prior written agreement of UNDP.
4.
UNDP will report on the contribution to its Executive Board in accordance with its regular procedures
regarding contributions from private donors. Other forms of recognition and acknowledgement of the
contribution are subject to consultations between the Parties, but the manner of such recognition and
acknowledgement shall be determined at the sole discretion of UNDP.
Article X. Completion of the Agreement
1.
UNDP shall notify IADB when all activities relating to the Project have been completed in accordance
with the Project Document.
2.
Notwithstanding the completion of the Project, UNDP shall continue to hold unutilized funds from the
Contribution until all commitments and liabilities incurred in implementation of the Project have been satisfied
and Project activities brought to an orderly conclusion.
3.
If the unutilized funds prove insufficient to meet such commitments and liabilities, UNDP shall notify
IADB and consult IADB on the manner in which such commitments and liabilities may be satisfied.
4.
Any payments that remain unexpended after such commitment and liabilities have been satisfied shall
be refunded by UNDP to IADB. .
Article XI. Termination of the Agreement
1.
This Agreement may be terminated by UNDP or by IADB after consultations between IADB,UNDP
and the programme country Government, and provided that the funds from the Contribution already received
are, together with other funds available to the Project, sufficient to meet all commitments and liabilities
incurred in the implementation of the Project. This Agreement shall cease to be in force 30 (thirty) days after
either of the Parties have given notice in writing to the other Party of its decision to terminate this
Agreement.
2.
Notwithstanding termination of all or part of this Agreement, UNDP shall continue to hold unutilized
funds until all commitments and liabilities incurred in the implementation of all or the part of the Project have
been satisfied and Project activities brought to an orderly conclusion.
3.
Any payments that remain unexpended after such commitment and liabilities have been satisfied shall
be refunded by UNDP to IADB. .
Article XII: Notice
Any notice or correspondence between UNDP and IADB will be addressed as follows:
(a)
To IADB: Daniela Carrera Marques, IADB Brazil Representative
Address:
Inter-American Development Bank – Representation Office in Brazil - SEN
Quadra 802 Cj F Lote 39 Brasilia DF 70800-400
(b)
Upon receipt of funds, UNDP shall send an electronic receipt to IADB email address
provided below as confirmation that the remitted funds have been received by UNDP:
IADB email address:
juancarlosh@iadb.com
(c)
To UNDP:
Jorge Chediek, UNDP Brazil Resident Representative
Address:
United Nations Development Programme in Brazil
Setor de Embaixadas Norte (SEN) – Quadra 802 – Conjunto C
Lote 17 / Brasília, DF / CEP: 70800-400
Article XIII. Amendment of the Agreement
This Agreement or any of its Annexes may be amended through an exchange of letters between
IADB and UNDP. The letters exchanged to this effect shall become an integral part of this Agreement.
Article XIV. Settlement of Disputes
1.
The parties shall use their best efforts to settle amicably any dispute, controversy or claim arising out
of, or relating to this agreement or the breach, termination or invalidity thereof. Where the parties wish to
seek such an amicable settlement through conciliation, the conciliation shall take place in accordance with
UNCITRAL Conciliation Rules then obtaining, or according to such procedure as may be agreed between the
parties.
2.
Any dispute, controversy or claim between the Parties arising out of or relating to this agreement or
the breach, termination or invalidity thereof, unless settled amicably under the preceding paragraph within
(60) sixty days after receipt by one Party of the other Party's request for such amicable settlement, shall be
referred by either party to arbitration in accordance with the UNCITRAL Arbitration Rules then obtaining. The
arbitral tribunal shall have no authority to award punitive damages. The parties shall be bound by any
arbitration award rendered as a result of such arbitration as the final adjudication of any such controversy,
claim or dispute.
Article XV- Privileges and Immunities
Nothing in this agreement shall be deemed a waiver, express or implied, of any of the privileges and
immunities of the United Nations, including UNDP.
Article XVI. Entry Into Force
This Agreement shall enter into force upon the signature of this Agreement by the parties hereto, on
the date of the last signature and will be terminated upon the completion of the Project, unless otherwise
determined by the parties.
IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed the present
Agreement in the English language in two copies.
For IADB-BRAZIL:
For UNDP BRAZIL:
Daniela Carrera Marquis
Jorge Chediek
IADB Brazil Representative
UNDP Brazil Resident Representative
Date:_______________
Date:__________________
ANNEX A
PROJECT DOCUMENT: Strengthening state and municipal government capacities to enhance implementation
of IADB development projects
United Nations Development Programme
Country: Brazil
Project Document
A. Context
1. Situation analysis
“Brazil is one of the IDB’s founding member countries. Since 1961, the Bank has approved $40
billion in loans and guarantees for Brazil that have helped fund projects costing more than $110
billion. These projects, in the areas of infrastructure, environment, institutional strengthening, and
poverty reduction, have been carried out in close cooperation with all levels of government, civil
society, and the private sector.
For example, the Federal Highway Rehabilitation Program supported improvements for 10,000 km
of highways in 18 Brazilian states that carry more than 60 percent of the country’s freight.
PROFAE, a program to improve nursing, has provided training to 225,000 field workers and 90
auxiliaries, in this way benefitting all of the Brazilian population.
In 2011, the Bank’s current portfolio of projects in Brazil totaled nearly $9 billion. Approximately
one third of this portfolio is targeted at improving living conditions in cities, the result of a strategy
initiated at the end of the last decade. Thanks to these investments, the Bank is known in Brazil as
the "Bank of Cities. "Bank projects are benefiting thousands of families that live in vulnerable
areas, particularly in major state capitals and other cities that will host the 2014 World Cup.
IDB-funded urban projects include support for investments in transportation, sanitation,
environment, neighborhood improvement, institutional strengthening, and renovation of historic
centers. Additional activities promote local economic development and improve the business
climate to attract investment.
The Bank is a principal partner in the government's PROCIDADES credit program, which is
designed to take a comprehensive approach to addressing urban problems. In this initiative, the
Bank is working directly with municipalities, which are provided with access to lines of credit.
Environmental and infrastructure projects and integration
Nearly a quarter of the Bank’s portfolio in Brazil is directed at environmental programs and basic
infrastructure and regional integration, including investments in restoring degraded areas, tourism,
promotion, and construction and rehabilitation of roads and airports.
The Serra do Mar and Atlantic Forest Socio-environmental Recovery Program is an example of
how the Bank integrates environmentalprotection with community development and poverty
reduction. In addition, initiatives such as the Acre Sustainable Development Program show how
deforestation in the Amazon can be reduced when local people carry out sustainable forest
management and adopt alternative sustainable economic activities.
A major focus for IDB investment in infrastructure in Brazil is road construction and rehabilitation,
an area that accounts for more than $550 million of investments in projects in 2010-2011. In the
tourism sector, the IDB has supported successive stages of the National Tourism Development
Program (PRODETUR) since its inception in 1994.
Fighting Poverty
Another principal focus of IDB lending in Brazil is combating poverty, promoting equity, and
improving human capital; these areas currently account for 16 percent of the Bank's portfolio.
After helping to consolidate and expand the Bolsa Familia program in the middle of the last decade,
the IDB is currently carrying out an initiative to better integrate the federal government’s poverty
reduction activities.
The Bank has been supporting the Program to Support the Development of Children and
Adolescents in Ceará (Proares), which is benefiting 82,000 at-risk children and adolescents in the
state through investments in education, health, culture, sports, and social assistance.
The remainder of the Bank's portfolio includes private sector projects and strengthening of public
sector institutions. For the private sector, since 1997 the Bank has partnered with BNDES, Brazil’s
national development bank, in eight operations totaling $9.5 billion to strengthen the
competitiveness of micro, small and medium-size enterprises.
The Bank also plays an important role in financing non-sovereign guarantee operations through
operations to support projects with strategic developmental importance, such as new wind turbine
production lines and expansion of the Sao Paulo metro.
In recent years, the Bank has supported a broad range of projects related to modernization of the
state, including measures to strengthen planning and fiscal management through the programs
PNAFE, PNAF-M, PNAGE, PROMOEX and PROFISCO.
These complementary initiatives are inter-related through a sequential process of execution that
demonstrates how public agencies can be modernized. Results of these programs include increases
in revenues, better cost control, improvement of taxpayer services (government service centers and
Internet websites) and greater transparency and public participation”i2
Country Strategy IADB and Brazil 2012-2014
“Together, IDB staff and Brazil determine how Brazil’s priorities coincide with the Bank’s
development strategies for the region. The product of that process is the IDB country strategy with
Brazil 2012-2014, approved by the Board of Executive Directors in May 2012.
The strategy reflects priorities shared between the government (multiyear plan – PPA) and the IDB
Group (the IDB-9 Capital Increase) and strikes a balance among the following six major strategic
objectives: (i) stimulate social and productive inclusion; (ii) improve the condition of the country’s
infrastructure; (iii) promote the development of sustainable cities; (iv) improve the institutional
capacity of public entities; (v) increase the sustainable management of natural resources and
climate change mitigation and adaptation actions; and (vi) promote development through the
private sector.
The Bank will work with the three levels of government, focusing on subnational agencies in
particular. Issues such as regional cooperation and integration, respect for biodiversity, and efforts
to reduce regional economic inequalities, with greater emphasis on the Northeast and North, will
provide a crosscutting orientation to the Bank’s action in Brazil. The strategy’s respect for diversity
in Bank-financed operations and activities, taking gender and racial factors into account, is one of
its key guiding criteria.”3
IADB loans Portfolio and challenges for implementation
The IADB held a strong a large portfolio of projects with the federal government during the
decades of the 80s and 90s. The new century brought an important turn point for the work of
IADB in Brazil, particularly after the victory of the labor party to the Presidency. Federal
government reviewed its financing strategies and reduced the number and volume of new
operations with IFIs. On the other hand state and municipalities, with fiscal capacity, gradually
increased their loan portfolio with IFIs aiming at increasing funding for their local priorities, which
included an array of issues and themes.
Back in the 80s and 90s , about 90% of IADB loans in Brazil were lend to Federal Government.
Now days, over 90% of the IADB loans have the state or the municipalities as the borrower’s loan
of more than 80 projects spread in the five regions of the country, with concentration in the North
and Northeast. Besides the extensive geographical comprisement, and the increased number of
partners and stakeholders that came along with this decentralization trend, IADB portfolio in
Brazil faces a number of challenges that adds high levels of complexity to the implementation of
project. With a portfolio of over 106 approved projects, the challenges include : i) diverse size
2
3
Text extracted from IADB web site: http://www.iadb.org/en/countries/brazil/brazil-and-the-idb,1002.html
Text extracted from IADB web site: http://www.iadb.org/en/countries/brazil/country-strategy,1160.html
and scope of loans ; ii) increased programmatic and administrative activities for the preparation
and project approval; iii) greater number of operational transactions; iv) insufficient staff in the
field to exercise monitoring and supervisory functions; and last but not least , v) low rates of
implementation vi) different, but predominantly low levels of individual and institutional
capacities installed at local government partners (borrowers), added to frequent turnover of staff.
These challenges , combined with few other local peculiarities, have led to moderate levels of loan
implementation , with an average of xx% for the current portfolio of approved projects.
In line with the IADB country strategy 2012-2014, particular with Objective iv ( to improve the
institutional capacity of public entities) , and with shift from federal loans to state/municipal loans,
the Bank seeks to strengthen its local monitoring and supervisory capacities by partnering with the
United Nations Development Programme (UNDP) and other institutions that can provide training
and technical assistance support to state and municipalities in order to increase levels of
implementation and reach expected development results and outcomes.
2. UNDP previous partnerships with IADB and future contribution
Partnership between IADB and UNDP dates back the 1980 decade. For many years, UNDP helped
Latin America Countries to implement the loans obtained through IADB loans. Several agreements
were signed between the IADB and UNDP to facilitate UNDP country offices to enter into projects
with governments to support the implementation of IADB’s loans with different operational
modalities, where the procedures and model contracts were either UNDP’s or IADB’s. The last of
these agreements was signed in 2003. However, with the introduction of corporate systems and
new rules and procedures such as Atlas, IPSAS, ICFs (internal control frameworks), UNDP went
through a transition period that substantially reduced , after 2009, the partnership with national
governments in respect to the implementation of IADB’s loans. UNDP headquarters and the Latin
American Regional Bureau is currently discussing these issues and intend to review UNDP
procedures in order to facilitate , enhance and increase the partnership with IADB since the Bank is
considered a key development partner in the Region.
In Brazil, the UNDP country office has supported the implementation of a list of projects financed
by IADB. Below a sample of some of projects financed by IADB and implemented with the
support of UNDP technical cooperation:
-
Modernization of the Tax and Financial Administration of the State of São Paulo Secretariat
of Finance (BRA/03/038)
-
Evaluation and Enhancement of Social Policies in the State of São Paulo (BRA/05/018)
-
Network of Legislative Integration and Participation – Interlegis (BRA/98/010)
-
Support to the Modernization of Sanitation Sector (PMSS II) (BRA/99/030)
-
National Programme for the Institutional Development of Public Private Partnerships
(BRA/06/016)
-
Programme for the Enhancement and Expansion of Secondary Schoolin the state of São
Paulo (BRA/99/012)
-
Professional Education (Proep) - (BRA/03/032)
-
Institutional Strengthening of the Secretariat for Evaluation and Information Management
of the Ministry of Social Development (BRA/04/046)
The implementation of these and many other projects together with the national executors provided
UNDP staff with an opportunity to learn about IADB rules and procedures, to understand the
difficulties faced by the borrowers at local level, to accumulate knowledge on institutional
capacities and development, and further to enhance its instruments and tools to support project
execution. Based on these experiences, staff training and project management knowledge
accumulated by the Organization, UNDP CO has a team prepared to work with IADB loans, both
in terms of programmatic and operational aspects,
procurement and acquisitions.
with particular emphasis to the issues of
Within the framework of national ownership, UNDP supports programme countries in developing
national and local capacities for human development and achievement of the MDGs, characterized
by effective project implementation/ management and South-South solutions. UNDP has elected
capacity development as a cross cutting element on all of its programmes and projects. A series of
publication, practice notes and guidelines have been produced to support UNDP staff on the field
work with national and local patterns. Based on participatory principles and integrated vision of
development, UNDP has made available diagnosis instruments, methodologies for analytical work,
planning tools and monitoring and evaluation techniques. Training, transferring knowledge,
technical assistance, exchange of experiences and enlarging opportunities to access information on
lesson learnt and best practices are some of the tools and strategies utilized by UNDP to strengthen
partners’ capacities to reach pre-determined goals and commitments such as those established in
the loan agreements with IADB and other IFIs.
The new partnership between UNDP Brazil and IADB Brazil proposed through this project
document is in alignment with the mission, strategic priorities and country programme of both
institutions. IADB projects in Brazil cover a large number of issues and themes, as defined in the
six major strategic objectives of the Bank Country Strategy 2012-2014. These issues and themes
have also been defined as UNDP priorities in its Country Programme Document for the period of
2012-2015, are reflected in the three first outcomes: 1. MDGs for All; 2. Green economy and
decent labor in poverty eradication and sustainable development context; and 3. Reducing
vulnerability to violence (citizen security). UNDP 4th outcome, South-south cooperation, can also
be an important instrument in the future to help to disseminate and transfer knowledge built up in
the context of IADB loan agreements in Brazil.
B. Project Result and Strategies
This project has the main objective to enhance state and municipal capacity to implement IADB
development projects in Brazil. The project will provide support IADB operations in Brazil,
focused on enhancing borrowers capacity to execute and implement development projects timely
and efficiently.
This result will be reached by the implementation of technical assistance activities by UNDP.
Among the technical assistance activities area included (but not limited to):
1.
Training sessions - Together with IADB Brazil, the CO will organize a number of
training sessions per project year (to be determined and based on demand), preferably per
country region to facilitate the participation of state and municipalities representatives and
stakeholders. These training sessions will be offered in the format of 2 to 4-days workshop,
with an interactive methodology and built-up on study cases. . The basic content to be
cover in the course will be organized in the following modules, which will include, but
will not be restricted to:
i)
Basic principles and guidelines for formulation of
technical specification
a Term of reference and
ii)
Basic principles and guidelines for contract management
iii)
Basic principles and guidelines Project management based on PMI methodology
. Other contents/modules can be included, to fulfill the necessities identified by IADB.
All content , material, publications and methodology of the training sessions will developed by
UNDP, in consultation/collaboration with IADB. UNDP will also issue certificates for those with
90% of attendance and implement an evaluation scheme.
UNDP will be responsible for the logistical organization of the training sessions, restricted to
partnering or rental the venue to accommodate the training session based on the defined work
methodology, provision of coffee-breaks, and the necessary equipment.
The organization of the sessions per state and regions will be discussed jointly with IADB, and
once a chronogram is agreed, IADB staff will identify and invite the participants.UNDP wil
handle registrations in situ. .
IADB will inform UNDP about the dates, location and themes expected for each training
session. Previously to the realization of each training session, UNDP will present to IADB a
proposal of methodology and costs for the training session. Once the proposal is approved by
IADB, UNDP will start its implementation. The content of each training session will be
elaborated in consultation with IADB. In the end of each training session, UNDP will deliver to
IADB a report of the training concluded, including the individual evaluations made by
participants.
2. Technical missions - UNDP will make available a team of professionals (staff and
consultants) that can be available, on a retainer basis, to attend specific demands of states
and municipalities related to difficulties in project execution. UNDP through its technical
assistance will offer solutions to the specific problems and will provide support to the
elaboration of documents (bidding documents, terms of reference, technical specifications,
loan revisions, work plans, etc). UNDP team will be composed of different professional
profiles – basically in the areas of management, programming, procurement, monitoring and
evaluation - that will be mobilized to travel to the demanding state or municipality.
The support missions will be demanded by IADB to UNDP. UNDP will be responsible for
elaborating a proposal of methodology and costs for each mission. This proposal has to be
approved by IADB before UNDP starts its implementation. UNDP will report to IADB the results
of each technical mission.
This project will be implemented until December 31st, 2014. If necessary, a project revision can be
signed by UNDP and IADB to extend project validity and/or adjust project activities and budget.
3. Main Beneficiaries
There are two levels of beneficiaries – direct and indirect ones. Direct beneficiaries of the project
include IADB Brazil , state and municipalities holders of loan agreements with the Bank. The
project will offer training and technical assistance directly to the executing agencies aiming at
enhancing implementation rates and at the same increase quality and efficiency of the procurement
processes. IADB Brazil will enlarge its capacity to assist partnering states and municipalities and
present enhanced project results and implementation rates.
Indirectly the population and the country as whole will benefit from a more efficient and effective
project implementation, resulting, hopefully, in better services, infra-structure and instruments/tools
that contribute to better quality of life, and social , economic and sustainable development. In
addition, timeless project implementation , not only can revert in benefit for those communities
directly affected by the project and population as whole, but also reducing/avoiding spending on
financial obligations foreseen in the loans when delays occur.
4. Management Arrangements
Project Organization Structure
Project Board
UNDP Programme
IADB
Executing Agency
Project Assurance
UNDP Strategic Unit
Coordinator
Project Manager
Project Support
UNDP
Programme and Operations
focal points
The project will be directly executed by UNDP – UNDP will be the executing agency of the project
- under the supervision of the Project Board (PB). The Project Board, aside from bearing
responsibility for supervision, will also play the role of providing strategic guidance for the project.
It will be comprised of two members: one representative of IADB and one representative of
UNDP. If necessary, and depending upon specific contexts, other formal members and project
stakeholders may be included in the group. The board is responsible for making executive
management decisions for the project when guidance is required by the Project Manager, including
approval of project plans and revisions.
On behalf of the Project Board, UNDP Strategic Unit Coordinator will act as project assurance and
will be responsible for carrying out objective and independent project oversight and monitoring
functions. The project assurance reports to the PB.
The Project Manager will run the project on a day-to-day basis on behalf of the Project Board
within the constraints laid down by the Project Board. The Project Manager’s prime responsibility
is to ensure that the project produces the results specified in the Annual Work Plan (AWP), to the
required standard of quality and within the specified constraints of time and cost. In order to
achieve this, the Project Manager will ensure timely delivery of the quality operational and
programmatic support. The Project Manager will also liaise with the UNDP RBLAC team in New
York as well as other HQ units to request support whenever needed.
UNDP’s Operations and Programme units will act as project support for the project manager as
requested by him/her. Provided that much of the consultancy and technical assistance foreseen in
the project is related t to procurement, Project manager will work very closely with UNDP Head
of Procurement Unit and his team.
UNDP will be responsible for informing the Brazilian Government (Brazilian Cooperation Agency
– ABC) about this project. This project is funded under a cost sharing modality, which means that
IADB transfers funds to UNDP to the implementation of the activities foreseen in this project
document.
Audits will be conducted by the UNDP Office of Investigations and Audit as defined in the UNDP
Programme and Operations Policies and Procedures and shared with IDB.
5. Monitoring and Evaluation
In accordance with the programming policies and procedures outlined in the UNDP User Guide,
the project will be monitored through the following the following instruments: a) annual progress
reports - an Annual Review Report will be prepared by the Project Manager and shared with the
Project Board; b) annual project review - Based on the above report, an annual project review
shall be conducted during the fourth quarter of the year or soon after, to assess the performance of
the project and appraise the Annual Work Plan (AWP) for the following year. In the last year, this
review will be a final assessment. This review is driven by the Project Board and may involve other
stakeholders as required. It shall focus on the extent to which progress is being made towards
outputs, and that these remain aligned to appropriate outcomes.
6. Risk Analysis
The Project has strong chances of success. The planned Result and products in the Results and
Resources Matrix will be developed based on previous experience and accumulated knowledge by
UNDP. Further the project will count with strong support from IADB Brazil which will invested
interested in the strengthening of state and municipal capacities to implement the loan agreements.
In addition, it is expected that state and local staff show strong interest to participate in the training
sessions and to make good use of the technical assistance that will be provided by the Project.
The risks associated with the implementation of the project will be dealt with existing mechanisms
in the Project design, as a result of the strategic partnerships being consolidated with IADB and
new ones to be established by the Project itself with loan borrowers and stakeholders (see table 1
below):
Table 1. Project Risk Management
Impact
Probability
Low
Medium
Lack
of Turnover of
interest of state and
state
and municipal staff
municipal,
holders of
Medium IADB
loans,
to
participate
in
the
training
sessions
Medium
Uninformed
state
and
municipal loan
holders of the
technical
assistance
available
through UNDP
project.
High
Management
Mobilization strategy of participants from
state and municipalities to be implemented by
the Bank itself, with its power of influence
and call.
The project foresees the offer of several
training sessions at different regions and
states. If staff turnover happens at a
particular institution, new staff could attend a
session in a different state or region
Together with IADB and based on preestablished criteria, UNDP will have to define
a strategy to disseminate and organize the
offer and the demand for technical assistance
to state and municipal loan holders.
7. Legal Context
The project document shall be the instrument envisaged in the Supplemental Provisions to the
Project Document, attached hereto.
Consistent with the above Supplemental Provisions, the responsibility for the safety and security of
the executing agency and its personnel and property, and of UNDP’s property in the executing
agency’s custody, rests with the executing agency.
The executing agency (UNDP) shall:
a) put in place an appropriate security plan and maintain the security plan, taking into account
the security situation in the country where the project is being carried;
b) Assume all risks and liabilities related to the executing agency’s security, and the full
implementation of the security plan.
UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to
the plan when necessary. Failure to maintain and implement an appropriate security plan as
required hereunder shall be deemed a breach of this agreement.
The executing agency (UNDP) agrees to undertake all reasonable efforts to ensure that none of the
UNDP funds received pursuant to the Project Document are used to provide support to individuals
or entities associated with terrorism and that the recipients of any amounts provided by UNDP
hereunder do not appear on the list maintained by the Security Council Committee established
pursuant to resolution 1267 (1999). The list can be accessed via
http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in
all sub-contracts or sub-agreements entered into under this Project Document
Results and Resources Matrix
OUTPUTS
OUTPUT GOALS
ACTIVITIES
RESPONSIBLE
PARTY
Input
OUTPUT 1
UNDP Technical
assistance provided
to states and
municipalities,
upon IADB demand
Baseline: l i) limited
capacity to provide
technical assistance
to loan borrowers;
ii) insufficient staff
in the field to
exercise
monitoring and
supervisory
functions
(Year 1) At least 3
training sessions
implemented; technical
missions planned
1.1 Define, in articulation with IADB,
content and methodology of the training
sessions
1.2
Prepare
instructional
UNDP
materials,
publications and evaluation scheme
(year 2) At least 3
training sessions
implemented ; at least 3
technical missions
concluded
1.3
Discuss
proposal
and
with
approve
IADB
implementation schedule,
and
Consultancy
24,000
Training
90,000
Subcontracts – project
auditing
training
Amount
(USD)
define
6,000
DSA/ Travel
30,000
Subtotal
150,000
venue and
organization of the participating states
and municipalities
UNDP
1.4. Based on IADB information on
mobilization and registration, organize
.
the logistics of the training sessions
1.5 Train staff and consultants in the
course materials and methodology that
will act as instructors and facilitators
1.6 Implement the training sessions
(iii)
low capacity of
borrowers to
implement loan
agreements; (iv)
lack of knowledge
on IADB rule and
1.7. Monitor frequency , issues
certificates and compile/analyze
evaluation forms
1.8 Propose enhancement for the next
session training and adapt
procedures
material/methodology accordingly
1.9 Articulate with IADB basic criteria
Indicators: i)
number of
missions, ii) % of
missions requested
by loan borrowers
and missions
realized; iii)
difference in the
implementation
rate of closely
monitor project;
(iv) : number of
public managers
and stakeholders
trained
and priorities to attend demands for
technical assistance from state and
municipal loan borrowers
1.10 Disseminate to state and
municipalities the availability of the
services from UNDP and inform criteria
1.11Inform states, municipalities and
stakeholders the scope of technical
assistance provided by UNDP
1.12Define scope of each mission,
including field and remote work, train
staff and consultants to deliver the
assistance
1.13Provide technical assistance to loan
borrowers focusing on problem solving
that will enhance project performance.
1.14Prepare report on each mission,
describing the problem, the solutions
proposed, documents formulated, time
spent on the field and remote work, final
solution adopted by loan borrowers and
if possible its benefits
1.15Define typology of assistance,
classify services provided and
consolidate information for the annual
progress reports
1.16Identify at least one project with low
implementation rate and monitor
closely, combining with technical
assistance
GMS 7%
10,5000
TOTAL
160,500
.