Implementation Guideline

Earthquake Recovery: Helping Local Communities Rebuild Livelihoods in Nepal – Phase I and Phase II

1. Introduction:

Earthquake Recovery: Helping Local Communities Rebuild Livelihoods in Nepal – Phase I and PhaseII is designed to support the earthquake impacted families of Strengthening Smallholder Enterprises of Livestock Value Chain for Poverty Reduction and Economic Growth in Nepal (SLVC) to regain their resiliency and revive their livelihood. The project aims to support for 31 sub-projects of SLVC. It is being implemented in ten districts and 40 VDCs in two phases.

2. Purpose of the guideline

This guideline is prepared primarily to support Project Holders to maintain uniformity and clarity of project activities during the implementation. It also assists concerned stakeholders and SHGs who are directly engaged in implementation of the project activities.  Other purpose of this guidelines are:

·         To provide clear framework to implement the project activities for effective project management.

·         To provide clear explanation of procedures, information requirement and decision options at each stage of the project implementation.

3. Implementation procedures

The project holder is responsible to perform the project activities according to the agreedterms and conditions as mentioned in the LOA, and PPF. He is accountable to follow all the required procedures set by finance and PME department and also maintain updated records of each project activityas mentioned in the implementation guideline. The subsequent chapter illustrates the procedures that need to be follow while implementing project activities.

3.1 Coordination with District Project Advisory Committee (DPAC) –the DPAC member

The sub project implementation must be done in consultation with DPAC. All the related district stakeholders must be informed about the scope of the project; also be orientated about the objective and mobilization process of SHG Support Fund, responsibility of SHGs, fund disbursement process to project families and management of the fund.

3.2 Engagement of Project Implementation and Management Committee (PIMC) – PIMC must be engaged in all steps of project implementation. Specifically in identification of project families, facilitation of SHG support fund disbursement and monitoring of fund use.

3.3 Project families & project structure – This project isdesigned to complement the goals of the Strengthening Small holder Enterprises of Livestock Value Chain (SLVC) project being implemented in the respective VDC, hence the project will only serve the families engaged in that project and adopt the same community structures. (SHG, PMC, GMC, Cooperative etc.)

3.4 Mobilization of project staff, project holder and volunteers – All staffs and the focal person of the SLVC project will serve in this project as well. Additional incentive has been provisioned to facilitate staff mobilization in challenging post disaster context. As this project requires a very quick rolling out of the activities a provision is made to mobilize volunteers, specifically during the need assessment phase.

3.5 Need assessment of Project families

A need assessment survey is to be conducted to assess damage and immediate needs (priorities) of project families. For this, project holder mobilizes the volunteers and/or project staffs. The team will facilitate the discussion and help the project families identify their needs.

Major steps:

Formation of need assessment facilitation team and deployment

·         Form need assessment facilitation team which will include, project staff and/or volunteers.

·         Map the SHGs and prepare assessment team deployment plan to ensure that this task is completed within the given time frame.

·         Orient the need assessment team members on how to undertake this task and fill the forms and formats

·         Engage/consult VDC representatives/PIMC members in as many of the need assessment events as possible and also clarify their role in future monitoring/facilitation of SHG Support Fund use.

·         Use Daily Wage Register to record volunteer mobilization (daily wage register annex 1) as required. In the case of staffs mobilization for need assessment daily wage register may not be applicable.

In the case of already identified project families for SHG support fund distribution, no need to carry out separate need assessment event. Project staff could collect data related to need assessment during the cash distribution events.

Conduct Need Assessment Survey:

·         Orient about the project goal and activities to all SHG members before carrying out the need assessment survey.

·         Thoroughly discuss the purpose of SHG Support Fund, its mobilization and management of the fund. List out and discuss the agreed activities that the families can invest the fund in. Take all their questions and ensure that each of the members is clear about the fund, its use, payback period and their responsibility.

·         The assessment survey is to be carried out group/family level as required.

·         It is utmost necessary to ensure participation of all identified or needy families or their family representatives (if SHG members is not available) in the meeting or need assessment process.

·         SHG leader should prepare the meeting minute and document the need assessment of group members (minute format_ annex 2)

·         The survey team (volunteers/project staff) will fill out need assessment survey form in the given format (need assessment survey form _ in annex 3)

Note:

Below is the list of pre-approved activities that the SHG member can choose to invest the fund:

·         Need assessment must be completed within 10 days of the start of the project.

3.6 Compilation of need assessment form

Need assessment form is compiled by Project Holder. Use the need compilation form (need compilation form annex 4) Project Coordinator will ensure that all the data data/information from the need assessment forms is entered accurately and actual amount of SHG Support Fund to be disbursed to each of the SHGs is clearly listed out. The duly completed form should be sent to Heifer PME department after verification by the respective Program Officer.

4.  SHG Support Fund and its mobilization

SHG Support Fund is provisioned to finance the activity prioritized by the respective SHG member during the need assessment. This funding is primarily targeted to provide immediate support to cope with the impacts of devastating earthquake and revive their livelihood.

·         This fund is provided to SHG, which is disbursed to each of the members to finance the agreed activity.

·         The member will begin to pay back the amount to the fund after 24 months and complete the repayment by 36 months.

·         No interest is charged until 36 months. The fund disbursement and repayment is recorded and managed by the SHGs with the guidance of Project Holder. A separate ledger is maintained for this by the SHG.

·         Around 18 months of fund disbursement to the SHG members, the SHG and the project holder start co-creating plans for further use of SHG support fund. The plans thus created have to be endorsed by Heifer Nepal office. Please refer SHG Support fund Management Guideline attached in Annex 5.

4.1 Agreement between SHG and Project Holder:

Formal agreement is executed between SHG and Project Holder for the mobilization SHG Support Fund among its group members. Project Holder requires following documents to carry out agreement with SHGs.

·         Meeting minutes of SHG with clearly mentioned about request of SHG support fund to mobilize among group members (Annex 2)

·         Need Assessment form of needy members identified for fund mobilization(Annex 3)

·         Need assessment compilation forms (Annex 4)

Following are the terms and condition of the SHG Support Fund Mobilization.

·         Each member is eligible to receive Rs. 15000 (Rupees Fifteen thousand only) for the activity mentioned in the need assessment form. The amount is to be paid back after 24 months and no interest is charged until 36 months (additional 12 month is allocated for payback period).

·         The repayment of the fund should be done on equal monthly installments. If the group decides on different repayment structure that has be discussed and minute in group meeting and agreed by the project holder.

·         The SHG will serve as a guarantee for the loan provided to each of its members. 

·         If the SHG member decides to discontinue her membership in the SHG, she must pay back the amount completely before her departure.

·         The fund amount should be invested according to their plan mentioned in Need Assessment Form. 

·         Each SHG member and SHG is accountable to abide by the terms and conditions stipulated in the agreement document and SHG Support Fund Mobilization Guideline.

PIMC/PMC members will serve as witness. Please refer annex 6 for Agreement format between SHG and Project Holder

4.2 SHG support fund disbursement to group members

After the agreement is signed, SHG is liable to disburse SHG Support Fund to its members.

Major steps to follow:

Step1: Collect request forms from each group member.  (SHG loan request form_ annex 7)

Step 2:  Document minutes of loan sanction for group each member. SHGs are requested to prepare minute to document the disbursement of SHG Support Fund to all members. 

Step 3: Issue payment receiptto each group member while distributing loan. A carbon copy is kept with the SHG and another carbon copy is submitting Project Holder. A printed, pre numbered triple copy receipt pad is provided to each the SHGs (payment receiptsample annex 8)

Step 4:  Inform and invite PIMC or PMC members and as far as possible and ensure their participation while disbursing fund to group members. The project holder facilitates the disbursement of the fund to SHG members.

Step 5:  SHG will prepare status report of fund disbursement (SHG Support Fund disbursement report_ annex 9) and submit to the Project Holder along with a duplicate copy of payment receipt, within 7 days of fund disbursement.

Step 6: The project holder should take all possible security measures to avoid any unintended consequences that may arise while handling cash. Where possible bank payments can be opted in place of cash. 

5. Accounting and Funds flow

All the accounting and fund flow policies/procedures of Heifer under the agreement with the partners will remain valid for this project unless mentioned otherwise.   After sub project agreement, the project holder will prepare project implementation plan (PIP) and cash flow and make fund request. Heifer releases budget in two installments as planned in the cash flow. Similarly, NGO releases SHG Support Fund to each group based on their contract as an advance. SHG is accountable to submit the following documents to settle the advance after disbursing the fund to its group members.

·         Receipts of payment of each group member

·         Compilation of Fund disbursement status of each group

6. Reporting Requirements 

Monthly progress and financial reports are prepared and submitted to Country Office of Heifer International Nepal.

Report includes:

·         Monthly progress report (MPR) with its targets and achievements

·         Compilation of need assessment form

·         Compilation of status report of SHG Support Fund disbursement at group level

·         Monthly expenditure report

Final report will include compilation of monthly reports with targets, achievements and relevant case story.

7. Monitoring of SHG fund utilization

Monitoring is mainly carried in two phases: (a) during the fund disbursement, and (b) utilization of fund. Project staff are responsible to ensure adherence to SHG fund guideline and that the accurate documentation is maintained at SHG level.

Project holder should prepare monitoring plan to verify the fund use at the family level. If the new priorities emerge, it should be recorded and the need assessment form needs to be updated. 

PIMC and PMC will also be active in monitoring of the utilization of the fund. 

8. Transparency and accountability

Project Holder should conduct a public audit to disclose the project expenditure and progress to the beneficiaries and stakeholder’s level at the end of the project. For this, a separate guideline will be circulated later with mentioning the process and steps of public audit.