Pro Forma Project Agreement

Food and Agriculture Organization of the United Nations

Technical Cooperation Programme

Country:
Project title:
Project symbol:
Starting date:
Completion date:
Government counterpart institution responsible for project execution:
FAO contribution:	US$ ....................

Signed: ..............................................	Signed: ...........................................
(on behalf of the Government)	Jacques Diouf Director-General (on behalf of FAO)
Date of signature: ............................	Date of signature:.............................

I. Project Summary

This should put particular emphasis on the outcome (desired improved situations or changes) expected from the project (not to exceed one half-page).

II. Background and Justification

This section will contain the background to the request and a brief description of the specific problem, highlighting its causes and effects, in the particular sector or sub-sector in which the project will be placed. It should specifically explain the sector's importance, the critical gap to be filled and the urgency of the problem to be solved in the context of the relevant Government’s sector and sub-sector strategy and policy. It should also explain the consequences caused by non-action on this specific problem, and outline how the assistance requested will be utilized to fill a particularly urgent need which cannot be met from other sources. Mention should be made of other related activities supported by the Government or by other assistance agencies.

The justification should highlight the follow-up action expected after completion of the project and the expected project's catalytic role in connection with the Government’s development efforts. It should, in particular, clarify how the Government intends to ensure realization of the planned project results in a sustainable manner, and the extent to which this will depend on national budgetary or policy decisions or funding decisions by other donors.

III. Objectives of the Assistance

This section will state briefly but in specific terms, the particular objective(s) which the project is expected to achieve. The project objective is defined as a specific aim to be achieved and formulated as the expected future improved situation after the successful completion of the project. The statement should be drafted wherever possible in terms permitting subsequent verification of project accomplishments. Examples include practice of a particular improved technology (developed by the project) by a group of beneficiaries, or staff capable of carrying out specific functions (as a result of training by the project).

IV. Project Outputs (Results)

Outputs (results) to be defined in this section, are the specific products of activities undertaken, the combined use of which by project beneficiaries will achieve the objective of the project, provided assumptions about external factors are correct. They should be defined in terms that permit their verification in quantity, quality and time, and should be consistent with the project objective and design, and provide the basis for the elaboration of a clear, detailed work plan.

V. Work Plan

All the substantive activities required to produce the outputs of the project will be defined. An overall implementation work plan will be given in the form of a timetable with a definition of its start and its end, with an indication of when each of the specific activities will be implemented and outputs produced. The format is flexible but should be sufficiently specific, not only to serve as a practical guide for the national Government and experts/consultants on what activity should be carried out at what time and at what place and to be implemented by whom, but also to serve as an instrument for monitoring project implementation and achievement for both the Government and FAO.

VI. Capacity Building

The project agreement is to describe in clear terms how the project will use national experts/consultants to achieve project objectives and how the use of such experts/consultants will contribute to building national capacity in the recipient institution/country.

VII. Inputs to be Provided by FAO

The description of the inputs should give a clear relationship between each of them and the respective project activities which each input supports. The ORACLE accounts under which the inputs should be budgeted (see budget table below) are shown in brackets in below description.

1. Personnel services

Technical services of international and/or national experts/consultants. The qualifications required, the total duration of the assignment and the number of missions will be stated. Also detailed estimates for the costs of fielding each expert will be provided in this section. Terms of reference for each expert and consultant and mission, with clear indication of the reporting responsibilities, will be included in an annex to the project agreement. No expert can be recruited under the same TCP project for more than 12 months; assignments of 12 months’ duration are exceptional and subject to confirmed follow-up funding or special review.

• International consultants/experts are to be selected and recruited by FAO from its international experts/consultants roster or the contacts and information available at headquarters and the field offices. The level of remuneration will be established according to UN prevailing rates for the type of expertise required. The standard costs include honorarium (5542), estimated travel costs and the daily subsistence allowance (DSA) (5684) applicable to the country.
  
• FAO Advisory Technical Services (ATS) are project inputs in their own right as they aim to provide tangible and measurable project outputs that are planned and agreed upon in approved project agreements. These inputs are provided by FAO Technical Officers based at FAO regional offices, sub-regional offices or headquarters, and can be reviewed after project completion. They are equivalent to services provided by consultants or experts. In exceptional situations, and only on the basis of specific authorization by the Director-General, formulation of project agreements may be charged under this component. The costs for ATS include honorarium (6120) calculated at the standard rate for FAO services established by the Organization, estimated travel costs and the DSA (5692) applicable to the country.
  
• National experts and consultants are to be selected and recruited by FAO. They may not be recruited from the counterpart institution/cooperating agency. The level of their remuneration (5543) is based on rates established by the UNDP Resident Representative or official Government rates. Recruitment of candidates is based on TOR and required qualifications. FAO retains the responsibility for their technical performance and reviews their performance.
  
• International expertise under Partnership Programmes (i.e. TCDC/TCCT or Retired experts and consultants) is to be selected and recruited by FAO based on candidates in the TCDC/TCCT Roster, the Corporate Roster or the contacts and information available at headquarters and field offices. The level of remuneration is established on the basis of separate agreements between FAO and the member countries that are signatories of the TCDC/TCCT agreements and according to the standard terms and conditions (5544 and 5686). If during project implementation unforeseen and unavoidable circumstances indicate that the use of TCDC/TCCT experts and consultants is not possible (unavailability of the TCDC/TCCT expertise with the required qualifications and within the required time-frame), the project may be exceptionally revised to substitute international experts and consultants for the TCDC/TCCT experts and consultants.
  
• Administrative support (secretarial support, drivers, casual labour,^1/ etc.) will be provided only on an exceptional basis and only in support of the project's activities (5652). Recruitment is normally the responsibility of the FAO Representative.

¹/ Cleaning of premises, security and maintenance costs are to be budgeted under GOE, but should normally be provided by the Government counterpart contribution.

• Supervisory Technical Services (STS) ensure the technical synergy of a project through the mobilization of technical inputs in the form of expertise or other inputs (equipment, supplies or training). They are provided by FAO's technical personnel and comprise technical work required for achieving the highest technical standards of the project inputs and outputs and technical supervision missions by FAO technical officers to the project site. The output of STS is improved project performance in the field, as a result of the technical coherence and standards of all inputs provided by the project. Supervisory Technical Services are calculated on the basis of standard rates (6122 and 6123), which are available at each FAO Office. Cost of Technical Supervision Missions normally comprise the travel costs and DSA (5693), and may include the honorarium (6121) provided output-oriented terms of reference are available. In addition, US$1000 are to be added for project evaluations (6116).

In obtaining personnel services for TCP projects, the Partnership Programmes (use of TCDC/TCCT experts and Retired experts) should be used to the greatest extent possible.

2. Duty travel (5661) by FAO's international and national experts and consultants and staff related to the project within the country (e.g. in-country flights, DSA, car rental in exceptional cases if covered by travel expense claim, etc.). This may also cover travel of the FAO Representative to project sites.

3. Contracts, Letters of Agreements or Contractual Service Agreements (5650) for specialized technical services. The expected results and conditions (including itemized services or inputs to be provided) for such contractual arrangements must be clearly specified in an annex to the project agreement.

4. General operating expenses (GOE) (6300) to cover miscellaneous expenses required in the field for the operation of the project, such as telephone communications, photocopy paper, renting of transport vehicles , etc. (in general, not exceeding $500 per work/month of international and national consultants and not more than 5 percent of the total budget minus the DOC). In addition, US$1 000 are to be added for processing the Terminal Statement or Concluding Letter.

5. Materials, supplies and equipment: the total cost of materials, supplies and equipment to be purchased under the project shall not exceed 50 percent of the budget with the exception of emergency (E) or development support projects (D). FAO's commitment is limited to the supply of the quantities specified in the project agreement, up to the budgetary allocation; unspent funds resulting from lower input costs than estimated in the project budget must be returned to the TCP General Account. They cannot be used for any other purposes unless specifically authorized by the Chief, TCOT.

• Materials and supplies (AL 6000) - specifications and maximum physical quantities for the individual supply items must be stated in the project agreement, including maximum amounts allocated in US$ for the individual supply items.
• Equipment (6100) required for achieving the project's specific objectives: the preliminary specifications including provisional itemized cost estimates should be provided in an annex to the project agreement.

6. Direct operating cost (DOC) (6118) to cover miscellaneous expenses at FAO headquarters related to the implementation of the project. They are calculated on the basis of rates established by FAO headquarters to cover the cost of operating the project:

7. Training: a distinction should be made between external training (study tours and fellowships) and in-country training (workshops and seminars). The costs, need for and purpose of each workshop and study tour should be well justified and detailed. On-the-job training of Young Professional Officers is possible within the framework of the Young Professionals Programme.

• Study tours (5929 and 5920) for nationals should be kept to the absolute minimum (maximum two trainees). The cost of an interpreter may be included, in exceptional cases.
  
• The budget of in-country workshops ( 5920) for national participants should cover the cost required for setting up the workshops and be limited to training materials, etc. In specific circumstances, expenses for internal travel of local participants to the training site, including DSA or pocket money for the participants who need accommodation in order to participate in the training course, may be included. DSA or pocket money would be calculated on the basis of the prevailing Government or UN rate, whichever is lower. International travel and DSA of participants in such events as regional workshops should be budgeted under account line 5694 Travel – Study Tours.
  
• Fellowships and academic training (AL 5548, 5650 and 5690), are excluded, except in rare cases where it is directly related to a specific problem. The duration of such training cannot exceed three months. Whenever possible, training will be provided locally.
  
• Young Professionals for on-the-job training (AL 5549 and 5691) can be engaged in accordance with the Guidelines on the Young Professionals Programme.

VIII. Reporting

Requirements for periodic reporting will be stated in the project agreement and will be adjusted to the needs of the project in each individual case. The FAO Representative will arrange for the submission to the Regional Office and to TCOM of a Quarterly Project Implementation Report (QPIR) to be prepared by his office or the National Coordinator or project staff, but submitted under the responsibility of the FAO Representative.

Each international or national consultant, including FAO personnel providing Advisory Technical Services, has to prepare a Mission Report containing the main results, conclusions and recommendations of his/her missions.

Technical Reports may be the main output of a TCP project. They may, in exceptional cases, replace the need for Mission Reports or Terminal Statements (below). Technical Reports must be approved by the technical divisions of the Organization through an appropriate review process. FAO is responsible for ensuring that the technical reports of all consultants or experts are submitted in a timely manner and are of a suitable quality.

Field Documents will be the normal form of reports by national or international consultants. They should be of high quality and accurate in their facts and presentation and require the approval by the technical unit responsible for technically supporting the project. Projects that have Field Documents as their major outputs will produce a Terminal Statement (below) which summarizes the project's main findings and conclusions.

The final project reporting requirement is a Terminal Statement, presenting the main results and conclusions of the project in addition to FAO's recommendations to the Government. It is the responsibility of the FAO technical unit charged with technically supporting the project to ensure that this Terminal Statement is issued in a timely manner and is of a suitable quality.

The preparation of the Terminal Statement may be assigned to the Lead Technical Consultant, and has to be specified in his/her TOR. In some cases, a short and concise concluding letter indicating that the project has delivered the inputs and achieved its purposes will be sufficient as a record of project accomplishments. Terminal Statements or Concluding Letters are transmitted by the Assistant Director-General of the Technical Cooperation Department to the highest technical authority in the Government, normally the Minister of Agriculture.

Within one year after completion of the project, the recipient Government should submit a brief report on action taken on the main recommendations resulting from the project.

IX. Government Contribution and Supporting Arrangements ^1/

^1/ The participation and obligations of governments are also outlined in the standard text of the General Provisions which is attached to and is full part of any TCP project agreement or letter of agreement (see Annex II).

This section should contain a clear statement of cash contributions, physical facilities (buildings, office space and local transport) and counterpart staff which the Government intends to make available in support of the project. Each project should be assigned a National Project Coordinator at senior level who will not be on the payroll of FAO nor receive any direct or indirect benefits from the project. National consultants or experts cannot be on the Government payroll at the time of their assignment with FAO.

Projects whose major activity is the preparation of a sector study, of policy advice, of documentation for a round table, etc. by a team of international and national consultants should be supervised by a Project Steering Committee whose membership should include senior officials of the technical ministries concerned, in addition to the FAO Representative.

The administrative arrangements and responsibilities assigned to each party of the project will facilitate project execution. This refers in particular to arrangements for clearance of experts, customs clearance of equipment, tax-free local purchase of project equipment and supplies, etc.

X. PROJECT BUDGET

The project budget covering the FAO contribution is prepared by FAO.

Country:	.......................
Project title:	........................
Project symbol:	TCP /....... / ......

XI. ATTACHMENTS TO PROJECT AGREEMENT

1. Description of the training programme

2. Description of Advisory Technical Services and Supervisory Technical Services

3. Description of services to be provided under contracts

4. Itemized list of equipment

5. Itemized list of materials and supplies

6. Terms of reference including description of required qualifications for each international and national consultant/expert/ and where appropriate for the National Project Coordinator.

ANNEX II - GENERAL PROVISIONS

1. The achievement of the objectives set by the project shall be the joint responsibility of the Government and FAO.

2. As part of its contribution to the project, the Government shall agree to make available the requisite number of qualified national personnel and the buildings, training facilities, equipment, transport and other local services necessary for the implementation of the project.

3. The Government shall assign authority for the project within the country to a Government agency, which shall constitute the focal point for cooperation with FAO in the execution of the project, and which shall exercise the Government's responsibility in this regard.

4. Project equipment, materials and supplies provided out of Technical Cooperation Programme funds shall normally become the property of the Government immediately upon their arrival in the country, unless otherwise specified in the agreement. The Government shall ensure that such equipment, materials and supplies are at all times available for use of the project and that adequate provision is made for their safe custody, maintenance and insurance. Vehicles and personal computers remain the property of FAO, unless otherwise specified in the agreement.

5. Subject to any security provisions in force, the Government shall furnish to FAO and to its personnel on the project, if any, such relevant reports, tapes, records and other data as may be required for the execution of the project.

6. The selection of FAO project personnel, of other persons performing services on behalf of FAO in connection with the project, and of trainees, shall be undertaken by FAO, after consultation with the Government. In the interest of rapid project implementation, the Government shall undertake to expedite to the maximum degree possible its procedures for the clearance of FAO personnel and other persons performing services on behalf of FAO and to dispense with, wherever possible, clearance for short-term FAO personnel.

7. The Government shall apply to FAO, its property, funds and assets, and to its staff, the provisions of the Convention on the Privileges and Immunities of the Specialized Agencies. Except as otherwise agreed by the Government and FAO in the Project Agreement, the Government shall grant the same privileges and immunities contained in the Convention to all other persons performing services on behalf of FAO in connection with the execution of the project.

8. With a view to the rapid and efficient execution of the project, the Government shall grant to FAO, its staff, and to all other persons performing services on behalf of FAO, the necessary facilities including:

i) the prompt issuance, free of charge, of any visas or permits required;

ii) any permits necessary for the importation and, where appropriate, the subsequent exportation, of equipment, materials and supplies required for use in connection with the project and exemption from the payment of all customs duties or other levies or charges relating to such importation or exportation;

iii) exemption from the payment of any sales or other tax on local purchases of equipment, materials and supplies for use in connection with the project;

iv) payment of transport costs within the country, including handling, storage, insurance and all other related costs, with respect to equipment, materials or supplies for use in connection with the project;

v) the most favourable legal rate of exchange;

vi) assistance to FAO staff, to the extent possible, in obtaining suitable accommodation;

vii) any permits necessary for the importation of property belonging to and intended for the personal use of FAO staff or of other persons performing services on behalf of FAO, and for the subsequent exportation of such property;

viii) prompt customs clearance of the equipment, materials, supplies and property referred to in subparagraphs (ii) and (vii) above.

The Government shall deal with any claim which may be brought by third parties against FAO or its staff, or against any person performing services on behalf of FAO, and shall hold them harmless in respect of any claim or liability arising in connection with the project, unless the Government and FAO should agree that the claim or liability arises from gross negligence or wilful misconduct on the part of the individuals mentioned above.

9. The persons performing services on behalf of FAO, referred to in paragraphs 6 to 9, shall include any organization, firm or other entity, which FAO may designate to take part in the execution of the project.