FIELD PROGRAMME CIRCULAR 3/96

From:
A. Regnier
Assistant Director-General, TC

Distribution:
All Assistant Directors-General
Division Directors
FAO Regional Representatives
FAO Sub-regional Representatives
FAO Representatives

cc:
UNDP Resident Representatives
Liaison Offices

1. INTRODUCTION

General

1. The substantial changes and adjustments in the mandates and functions of a number of organizational units as well as other concrete steps taken in restructuring the Organization, in particular in implementing the decentralization policy, call for redefinition of responsibilities and revision of procedures to be followed during the project cycle, i.e. from the processing of requests for Technical Assistance (TA) through implementation to evaluation and final reports.

2. The purpose of this Circular is to define the roles and functions of various organizational units involved in the project cycle and to provide guidance on the procedures to be followed. These apply not only to country-specific projects but also mutatis mutandis to inter-country and global activities.

3. The procedures outlined below have been developed in the light of the recent structural changes and new programme orientations sanctioned by FAO's Governing Bodies. They are in line with the new functional responsibilities as laid down in the Functional Statements contained in the FAO Manual.

4. The progress in the decentralization of functions and responsibilities will call for further adjustments in the procedures which will be issued in the form of additional Circular or suitable revisions in the future.

Main Principles

5. The FAO field programme, which will increasingly reflect the programme rather than project-by-project approach, constitutes a major component of FAO's services to Member Nations and involves practically all segments of the Organization at both Headquarters and the decentralized level. Of particular importance are the contributions by the technical and administrative departments in providing guidelines and other normative functions, and by the technical officers in the identification, formulation and appraisal of programmes and projects as well as in the provision of technical support to approved programmes and projects.

6. Field programme activities must respond to the policies and priorities of Member Nations and be consistent with the Organization's mandate and priorities. In particular, they should be in line with the paramount objective of the Organization to promote food security. Within this context emphasis is being given to the role of the Special Programme on Food Security (SPFS) which should be conceived and implemented as a catalyst around which FAO's field activities should progressively converge to form a coherent whole.

7. Moreover, FAO's field activities have to be harmonized with national objectives and actions, and relevant multilateral and bilateral assistance, thus ensuring complementarity and avoiding duplication. Therefore, projects should be seen in the wider context of overall development policies and strategies, sectoral requirements and in relation to upstream policy advisory activities. The TC Department, through its Policy Assistance Division, TCA, has a major direct responsibility in this field, particularly in programme development. TCA and its outposted staff, in close consultation with FAORs-and in collaboration with the Departmental Groups in Regional Offices and Multi-disciplinary Teams in Sub-regional Offices, are to ensure the country focus which is essential for establishing and maintaining a consistent programme framework for FAO's operational services to Member Nations.

8. As laid down in the functional statement, the Technical Cooperation Department, TC, mainly through its Field Operations Division, TCO, has the primary responsibility for "managing and coordinating all phases of the project cycle and implementing technical assistance projects" (MS 110. 11 1M). In carrying out this responsibility, the TC Department is supported by the normative/technical departments and the Administration and Finance Department, A1 in their respective fields of competence in all stages of the project cycle. The technical and administrative support services will increasingly be provided through the decentralized structure.

9. The procedures described below seek to ensure better quality in programme and project formulation and implementation and reduce the time required between the receipt of a request and the eventual implementation of the project to the extent possible.

II. PROJECT CYCLE

10. The attachment to this Circular contains flowcharts depicting the basic elements of the process to be followed and the main units involved between the initial receipt of a request and project implementation. Depending on each individual case, steps may be taken concomitantly. The process is differentiated according to the funding source, i.e. UNDP, Trust Funds, TCP as well as for emergency operations. Further details concerning the latter types of projects are reflected in separate Circular (Field Programme Circular 2196 "Guidelines in Cases of Emergencies originating from Natural or Man-made Disasters Affecting the Food and Agriculture Sectors"; Field Programme Circular (to be issued) on TCP Guidelines). Furthermore the process followed may differ in the case of programmes/projects in direct support to normative activities of the Organization.

Pre-implementation Phase

11. The pre-implementation phase covers the different steps of the project cycle from the conception of a project idea or request, its initial review and screening, to its formulation, appraisal and approval.

Project Ideas and Requests - Sources

12. Project ideas or requests for FAO's assistance come from a multiplicity of sources. They originate primarily from national Government authorities. They may also originate from funding sources, or donors, and from FAO units at any location. The FAORs are in a particularly, advantageous position to assist Government in preparing requests and, increasingly, identifying an in-country donor. Often, projects generate directly new proposals or follow-up activities. However, project ideas and requests should increasingly be part of an overall programme which address the development requirements of the country and be in line with national and FAO priorities.

13. Where FAO has provided assistance for programme development, with UNDP funds or otherwise, the project ideas identified in the programme would enter the project cycle in the same way as project ideas or requests originating from other sources.

14. Governments would normally submit requests through the FAORs, or FAO's agent in the country, while their requests coming through their sub-regional bodies normally come thorough the sub-regional or regional representatives. However, on occasion Governments directly approach FAO Headquarters or Regional (Sub-regional) Offices. Funding sources or donors often approach the Organization through a number of channels, i.e. the FAOR, the field project staff, the technical units or those responsible for cooperation with multilateral and bilateral agencies (TCDM), or with the private sector and NG0s (TCDN). Both multilateral (i.e. UNDP) and some bilateral funding sources or donors are progressively delegating approval authority to their own country offices and, therefore, they may also address their requests to FAORs or to Regional (SuS-regional) Representatives.

Initial Review and Screening of Ideas and Requests

i. At Country, Regional/Sub-regional Office level

15. Any request submitted to Headquarters through the FAO Representative should be accompanied by his/her in-country assessment. Regional and sub-regional requests originating from Regional or Sub-regional Representatives should be sent to FAO HQ, together with their assessment, with copy to the FAO Representatives concerned for, when applicable, in-country assessment. All requests directly received at Headquarters will be referred for initial assessment to the FAOR and, for Regional or Sub-regional requests, to the Regional/ Sub-regional Representative.

16. The FAOR and the Regional or Sub-regional Representative as the case may be should assess the content of the request covering inter alia the following aspects:

• Linkages with national (regional or sub-regional) objectives and programmes to achieve them;
• Availability of resources from internal and external sources in support of the objectives;
• Linkages with existing FAO programmes or with other FAO activities, in the country (or region/sub-region);
• Linkages with existing frameworks for international cooperation, such as the Country Strategy Notes (CSNs) or country programmes of multilateral or bilateral agencies;
• Priority attached by the Government to the request;
• Capacity of the relevant counterpart institutions;
• Impact of project results on target beneficiaries.
• Sustainability of the project results;
• Feasibility of the requested proposal;

17. Every request should be assessed to ascertain the likely contribution to enhancing food security in the country or region/ sub-region

18. In carrying out the above assessment, the UN Resident Coordinator and representatives of the main multilateral and bilateral donors should be consulted. Moreover, the FAOR and/or the Regional or Sub-regional Representative, may avail themselves, for the assessment, of the services of FAO field staff present in the country and/or national consultants.

19. The FAOR or the Regional or Sub-regional Representative submit the request and the assessment, as well as any additional information, to the Office of the Assistant Director-General, TC in Headquarters. At the same time, a copy is forwarded by the FAOR to the Sub-regional and Regional Representatives, and by the Sub-regional Representative to the Regional Representative.

20. The RR/SRR provides, within a strict deadline, recommendations as to whether FAO should accept or reject the request, based on a quick review by the concerned technical and policy officers, taking into account the FAOR's assessment and the related information at the regional or subregional office. The recommendations should be justified in terms of their technical feasibility and conformance with national programme priorities as well as recdonal or/sub-regional needs and priorities. The response should be provided, preferably by E-Mail, to the ADG/TC, who transmits it, together with any additional comments as required, to the unit responsible for processing the request further at Headquarters.

ii) At Headquarters level

21. The formal entry point at Headquarters for all requests for FAO assistance is the TC Department, i.e. the Assistant Director-General, TC, Therefore, irrespective of the source, all requests should be routed and be brought to the attention of the ADG, TC who, according to the Functional Statement, "screens them in consultation with other organizational units as required and decides on their further processing" (MS 110.211 (viii)). To assist him in the screening, the process is managed by TCO for UNDP and TF projects, by TCDT for TCP, and by TCOR for emergency operations. All requests for emergency assistance are immediately forwarded to TCOR for action (See the "Guidelines in Cases of Emergencies ..." for the accelerated procedures to be followed in such cases.). All other TCP requests are for-warded directly to TCDT for action. Requests for a non-emergency nature assistance, as well as those that do not conform to TCP criteria, are sent to TCO for action.

22. All requests received are entered by the Information and Procedures Unit, TC1)I into a computerized Joint Project Pipeline System UPS), which also allows the responsible units concerned to record actions on subsequent steps for monitoring purposes. Requests for emergency and TCP assistance are recorded directly in JPS by TCOR or TCDT.

23. For the technical screening the TC Department relies, as required, on the technical divisions and units at Headquarters who draw upon the comments of their outposted colleagues in the Regional and Sub-regional Offices and, as appropriate, those on field projects. Within the short deadline set by the TC Department, the technical units should not only provide in their response an assessment of technical soundness or comments on the technical feasibility, potential risks, suggested activities, etc., and a recommendation concerning the further handling of the request, but also modification of the project proposal if deemed necessary. They would also indicate which technical officer(s) should be involved in the formulation, appraisal and technical support if the request were to result in an approved project. The response of the technical units is provided by E-Mail normally within a week of receipt.

24. The units responsible for coordination with the envisaged funding source, i. e. the Unit for Cooperation with Multilateral and Bilateral Agencies, TWM, the Unit for Cooperation with Private Sector and NG0s, TCDN. as well as the- Technical Cooperation Programme Unit for TCP, receive a copy of the requests and review them with regard to the prospects for fundine and in the light of the priorities, policies and criteria of the individual sources within their respective responsibilities. In their task of fund raising, TMM and TCDN associate the Technical Divisions and other relevant organizational units, as appropriate.

25. TCO assesses the potential operational issues involved, including the estimation of resources needed (if any) in the detailed formulation of the project.

26. In the case of requests/proposals for UNDP or Trust Fund assistance, TCO summarizes the results of the initial review and screening process, taking into account the corriments and recommendations made by the various units involved in the process, and submits the proposal, together with its recom.mendation, to the ADG, TC for decision. Similar steps are taken by TCDT and TCOR for TCP projects and emergency activities respectively.

27. The initial review and screening process is, in principle, concluded witha decision by the ADG, TC -on the further processing of a request, taking into account the comments and recommendations made by the various units involved in the process.. The decision will be made after also assessing conforn-iiry with FAO priorities and existing guidelines, methodolocries and criteria for field operations. This decision is then communicated by TCO to the FAOR(s) and the Sub-regional and/or Regional Representatives.

Formulation and Appraisal

28. As soon as project formulation/reformulation is decided, TCOR, TCDT or TCO manage the formulation process as part of their overall responsibility for, respectively emergency, other TCP and UNDP/TF projects. While the - overall responsibility for overseeing the project formulation process has been assigned to the Investment Centre Division, the formulation of emergency projects is performed by TCOR in direct collaboration with the concerned technical units, and non-emergency TCP projects are formulated by the concerned technical unit, which includes TCA for policy-related projects and TCI for investment-related or the larger and more complex technical assistance projects. TCI also oversees the formulation process for UNDP and Trust Fund projects which are normally prepared by the concerned technical units. Particular attention is given by TCI to technical assistance projects funded by the financing, institutions.

29. When requesting services from technical units for formulation and appraisal, the managing units (TCOR, TCDT and TCO) will ensure that costs of such services of technical officers are reimbursed from project budgets to the extent that funds are available or expected to become available. If this proves not possible the Technical Divisions will provide these inputs from their resources. The same arrangement is applicable for services to be rendered by technital units in relation to the implementation and backstopping services to projects.

30. The managing units ensure that the formulated project is properly appraised by technical officers not involved in the formulation and that the question of technical backstopping and implementing arranaements is also addressed.

Funding - Donor Agreement

31. For projects under extra-budgetary resources an agreement with the potential funding source has to be negotiated. This is the responsibility of TCDM/TCDN depending on the donor concerned and/or TCOR for emergency activities, and of the FAOR in the case of UNDP-funded, country-specific projects, or those for which authority has been delegated by the donor to their officers the country.

Agreement of the Recipient

32. The agreement of the recipient has to be obtained on the formulated project. This is done through the FAOR(s). Depending on the type of project, the FAOR is normally approached by TCO for UNDP and Trust Fund projects, by TCDT for TCP projects and by TCOR for emergency activities.

Approval and Signature

33. Project documents duly appraised, and as agreed with the funding source and the recipient, are submitted to the ADG, TC for review and approval on behalf of FAO. The approval of ADG/TC includes the designation of operating responsibility. It also includes the establishment of the Project Task Force (PTF) and Lead Technical Unit. Within the delegated authority, the ADG, TC signs or authorizes the signature of the project document/agreement on behalf of FAO.

Implementation Phase

3 4. The implementation phase commences immediately upon approval of the project and the assignment of operational responsibilities.

35. The operating unit mobilizes the agreed inputs and the required technical and administrative support in cooperation with the relevant units at Headquarters, Regional, Sub-regional as well as Country Offices. In carrying out this task the designated operations officer is supported by the above-mentioned Project Task Force.under his/her chairpersonship.

36. PTFs, convened as required, are located in either Headquarters or the RO/SROs depending on where the responsible TCO Service is located. Irrespective of location, Technical Division desi-nates techiiical officers in the first instance those located in the RO/SR0s, and at Headquarters to participate in PM, according to where the relevant capacity is to be found. PM are expected to make extensive use of E-mail for exchange of views and circulation of technical comments at all staces of the project cycle. TCO maintains contact with the FAOR and, throu,,h him/her, with the government(s) concerned as well as with the local representative (s) of the prospective donors as appropriate.

37. The Project Task Force is the principle vehicle for streamlining and concerting the organizati on's combined inputs into the project process, as well as for monitoring and control. The main responsibility of the Lead Technical Unit for the Project Task Force is to ensure- effective adequate technical support and technical quality on the premise that such technical support is provided, whenever possible, through the field project staff or technical officers in the decentralized structures (ROs/SROs) or from technical units at Headquarters.

38. Financial control, project evaluation and auditing are an integral part of the project cycle. AFF, PBEE and AUD perform these functions respectively.

39. As the decentralization process for project implementation progresses, more detailed procedures and guidelines for those involved in project implementation will be developed and published as updates to the Manual of Project Operations and subsequent additions or revisions to this Field Programme Circular.

Attachment P.1
Project Cycle

1. TCDI ensures that all requests/proposals are recorded in the Joint Project Pipeline System (JPS); in the case of TCP projects and emergency assistance, this function is performed by TCDT and TCOR respectively.

Attachment P.2
Project Cycle

1. The possibility of appraisal through an independent mechanism could be considered in due course.

2. Implementation generally follows current procedures and practices and it is, therefore, not extensively covered in the text of the FPC.