THE REPUBLIC OF UGANDA 

   

MINISTRY OF GENDER, LABOUR AND SOCIAL DEVELOPMENT YOUTH LIVELIHOOD PROGRAMME (YLP)

   

PROJECT FUNDS ACCESS CRITERIA

 

 

Prepared by Ministry of Gender, Labour and Social Development

Kampala, Uganda  

 JANUARY-2014

 

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TABLE OF CONTENTS

TABLE OF CONTENTS ..................................................................................................................... 1 

ACRONYMS AND ABBREVIATIONS ............................................................................................ 2 

PREFACE ........................................................................................................................ 3 

1.1   What is the Youth Livelihood Programme? ................................................................ 4 

1.2   Programme Development Objective ......................................................................... 4 

1.3   Target Group .......................................................................................................... 5 

1.4   What kind of support will the Youth receive from YLP? .............................................. 5 

1.5  How will the support be delivered? .......................................................................... 5 

2.0  PROJECT FUNDS ACCESS GUIDELINES .............................................................................. 6 

2.1 How will the Youth Express Interest? ........................................................................... 6 

2.2 Beneficiary Selection ................................................................................................... 6 

2.3 Enterprise Selection and Project Preparation ................................................................. 7 

2.4 Desk and Field Appraisals .......................................................................................... 10 

2.5 Project Approval ........................................................................................................ 11 

2.6 Fund Disbursement to Approved Projects ................................................................... 12 

3.0  PROJECTS IMPLEMENTATION ............................................................................................. 14 

(i)  Project Launch ...................................................................................................... 14 

(ii)  Project Implementation Arrangements ................................................................... 14 

(iii)  The Roles and Responsibilities of Project Committees ............................................. 15 

(iii)  Community Procurement ....................................................................................... 17 

4.0  REVOLVING FUND MECHANISM ......................................................................................... 19 

(i)  Terms and Conditions of Repayment ...................................................................... 19 

(ii)  Grace Period ......................................................................................................... 19 

(iii)  Forms of Repayment ............................................................................................. 19 

(iv)  District Collection Account ..................................................................................... 20 

(v)  Monitoring of Repayments ..................................................................................... 20 

(vi)  Handling Default ................................................................................................... 20 

 

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ACRONYMS AND ABBREVIATIONS

 

ACDO Assistant Community Development OfficerCAO Chief Administrative OfficerCDD Community Demand-Driven DevelopmentCDO Community Development OfficerDEC District Executive CommitteeDTPC District Technical Planning CommitteeESMF Environmental and Social Management Framework EPRA Extended Participatory Rural AppraisalIEC Information Education and CommunicationIGA Income Generating ActivitiesIS Institutional Support ComponentLC Local CouncilLG Local GovernmentLS Livelihoods Support ComponentMGLSD Ministry of Gender, Labour and Social Development MIS Management Information SystemMoU Memorandum of UnderstandingNTWC National Technical Working CommitteePIS Programme Implementation SupportPS Permanent SecretaryRDC Resident District CommissionerSAC Social Accountability CommitteeSC Sub-CountySCC Sub-County ChiefSD Skills Development ComponentSTPC Sub-county Technical Planning CommitteeTAAC Transparency, Accountability and Anti-corruption TST Technical Support TeamUBOS Uganda Bureau of StatisticsYIG Youth Interest GroupYLP Youth Livelihoods ProgrammeYPMC Youth Project Management CommitteeYPC Youth Procurement Committee

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PREFACE

The Youth Livelihood Programme (YLP) is a Government of Uganda Rolling Programme, being implemented under the Ministry of Gender, Labour and Social Development, beginning in the Financial Year 2013-2014. The Programme is designed to respond to the existing challenge of unemployment and poverty among the Youth in the country. Its design is based on the Community Demand-driven Development Model (CDD). The implementation of the Programme is mainstreamed into the existing government structures at national and local government levels. The Programme is being financed from Government of Uganda own resources and will cover all the districts in the country. This Project Funds Access Criteria is prepared to serve as Guide to the implementers of the Programme at the Local Government and Community levels to effectively play their roles and responsibilities at the various stages of the Project Cycle, as provided in the Programme design. This Guide seeks to promote wider participation, transparency and accountability in the Programme processes, while at the same time ensuring consistency in the implementation of the Programme across districts and communities. This Guide should be read alongside the YLP Programme Document and Component Handbooks, including; Skills Development Handbook, Livelihood Support Handbook, M&E Strategy, Communication Strategy, Community Procurement Handbook and the Administrative Handbook, among others.

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1.0 PROGRAMME DESCRIPTION

1.1 What is the Youth Livelihood Programme?

■ The Youth Livelihood Programme (YLP) is a Government of Uganda Rolling Programme being implemented under the Ministry of Gender, Labour and Social Development (MGLSD), beginning in the Financial Year 2013-2014.

■ The YLP is intended to increase self-employment opportunities and income levels among the un-employed and poor Youth in all the 112 districts (including Kampala City) through vocational skills development and income generating activities.

■ The Programme is designed in response to the high un-employment and poverty among the Youth in the Country that has led to a feeling of marginalization and exclusion among some of the Youth.

■ The YLP is a Community Demand-driven Programme that promotes intensive and active participation of the Youth in planning, implementing, monitoring and evaluating their priority investment choices.

■ The YLP Funds will be administered in form of Interest-free Revolving Funds to Youth Interest Groups that will be formed and facilitated by the Local Governments.

■ The Programme is being financed from Government own resources (with a possibility of development partners’ support in the future as need arises).

■ The approved budget for the first 5 years is Ug. Shs. 265 billion.

1.2 Programme Development Objective  

The Programme Development Objective (PDO) of the YLP is to empower the target youth in Uganda to harness their socio-economic potential and increase self-employment opportunities and income levels.

Specific Objectives

(i) To provide youth with marketable vocational skills and tool kits for self-employment and job creation.

(ii) To provide financial support to enable the youth establish Income Generating Activities (IGAs).

(iii) To Provide the youth with entrepreneurship and life skills as an integral part of their livelihoods.

(iv) To provide youth with relevant knowledge and information for attitudinal change (positive mindset change).

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1.3 Target Group

The principle target beneficiaries of the Programme are the unemployed and poor youth (18 to 30 years). Specifically, the Programme will target the following categories of youth:

■ Drop-outs from school and training institutions ■ Youth living in slums, city streets, high risk and impoverished communities ■ Youth that have not had the opportunity to attend formal education ■ Single parent youth ■ Youth with disability ■ Youth Living with HIV/AIDS ■ Youth who have completed secondary school or tertiary institutions

(including Universities)

1.4 What kind of support will the Youth receive from YLP?

The YLP has 2 Components namely: (i) Skills development, and (ii) Livelihood Support, as follows:

(i) Skills Development:

Under the Skills development Components, the Youth will receive support in form of the following: ■ Vocational skills training ■ Basic start-up tool kits ■ Entrepreneurship and Business skills ■ Life skills training

(ii) Livelihood Support:

The Livelihood Support Component will finance viable income generating activities. The support will focus on the following areas: ■ Productive assets/critical inputs for income generating enterprises ■ Entrepreneurship and Business skills ■ Life skills training

1.5 How will the support be delivered?

■ Support to the Youth will be delivered through Youth Interest Groups (YIG) of 10-15 members (with at least 30% female). This will enable the Programme reach out to more beneficiaries in a more cost-effective manner, while at the same time providing opportunity for the individual members to co-guarantee one another for purposes of implementation of their Project.

■ Each approved YIG Project will receive funds for implementation of its Project directly in its YIG Project Account.

■ The Youth Interest Groups will be financed up to UShs. 12.5 million

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2.0 PROJECT FUNDS ACCESS GUIDELINES

The YLP Support will be accessed by Youth Groups that will have expressed interest, passed the beneficiary selection criteria, and generated viable projects that are approved by the District Technical Planning Committee.

2.1 How will the Youth Express Interest?             The eligible beneficiaries will:

a. Obtain a Project Interest Form (PIF) from the Sub-county distributed free of charge by the Sub-county Focal Point Person (CDO/ACDO). It is a one-page form which captures the type of project the Youth wish to undertake, the location of the Youth/proposed Project site, as well as the contact persons for follow up.

b. Complete the PIF in duplicate (one copy to be submitted to the Sub-county and the other to be retained by the Youth).

c. Each PIF issued and returned to the Sub-county will be entered in a PIF register, maintained by the Sub-county.

d. It should be noted that the PIF is not a Project Application Form. It is an indication of the wish of the Youth to participate in the Programme and an invitation to the Sub-county Authorities to follow-up and facilitate the Youth to transform their Project Idea in to a fundable Project Proposal/Application.

e. On receipt of the PIF at the Sub-county, the Sub-county Selection Committee, based on the information provided on the PIF, will get in touch with the Local Council-One (LCI) Chairperson of the area to mobilize the Youth who are behind the PIF submitted, together with the entire community of the village they reside in, for a meeting to be conducted within that village/community.

2.2 Beneficiary Selection

■ The process of beneficiary selection will be facilitated by the Selection Committee comprised of the Sub-county Chief, Sub-county CDO/ACDO, Sub-county Youth Chairperson and LCI Chairperson of the area.

■ Beneficiary selection shall be done in a community meeting in a transparent and participatory manner. This process is expected to take 3-4 hours.

■ The process will begin with sensitization of the entire community on the Youth Livelihood Programme. Thereafter the Selection Committee will announce the receipt of a PIF from Youth from that community and ask them to introduce themselves to the meeting. At this point the actual selection will have started.

■ The Selection Committee will then engage the community to confirm the following:

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(i) Are all the intended beneficiaries Youth (persons within 18-30 years of age)? Evidence may be provided through birth certificates, immunization cards, passports, baptismal cards, national identity cards or community knowledge of the Youth.

(ii) Are all the intended beneficiaries bona fide residents of their area? (iii) Are all the intended beneficiaries un-employed, under-employed or

poor? (iv) Are all the intended beneficiaries Ugandan Nationals? (v) Does the selection of the Youth to benefit under the Group conform

to the cardinal principle of equity in the allocation of resources? The Selection Committee with the help of the community will ensure that not more than 1 Youth is selected from any one household at any one time, and that priority is given to the Youth who have not benefitted from other similar Programmes in the recent past.

(vi) Are all the Youth of sound minds and good character to be trusted with the funds?

(vii) Is the number of the Youth that have passed the test (issues i-v, above), meet the requirement 10-15 members (with 30% female composition)?

(viii) If the conditions i-vi above are fulfilled, Selection Committee will then declare the Youth Interest Group (YIG) formed and its membership.

(ix) The Selection Committee will display the list of the members at a public place within the community for at least 2 days.

(x) Any grievance arising from this process should be addressed to the CAO, RDC and PS/MGLSD.

(xi) The members of YIG formed will then be invited to return to the venue the following day (or as will be agreed) to elect their leaders, and undertake the process of Project/Enterprise Selection and Preparation.

2.3 Enterprise Selection and Project Preparation  

Enterprise selection and preparation process will be facilitated by the Sub-county CDO/ACDO, Commercial Officer and the relevant Subject matter specialists at the Sub-county or District. The process will be guided by the investment options provided under YLP. The main outputs of this process will be the Project Proposal with a Budget and Business Plan (including the cash flow projections). The Business Plans generated will be reviewed from time to time. The process is expected to take 2-3 days.

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(a) Enterprise Selection

The selection of the Enterprises or Projects will mainly be based on viability analyses to ensure that the Projects that are financed will generate adequate income to sustain themselves, and meet the repayment of the Revolving Fund and day-to-day basic needs of the Youth. The following criteria will apply:

Production analysis Marketing analysis Profitability analysis Sustainability analysis

(i) Production Analysis

This will include analysis of:

Existence of local knowledge about the product/enterprise Availability of inputs Appropriateness, relevance and affordability of the technology to

be used. Production risks Suitability of the natural conditions (reference will be made to the

zoning done by the Ministry of Agriculture & NAADS for agriculture related enterprises)

Availability of service support for the product Time period between production and realizing the benefit

(ii) Marketing Analysis

This will include analysis of:

Demand status Market price offers Market competition/market share Means and terms of payment Delivery conditions Quality requirements

(iii) Profitability Analysis

The profitability analysis may be done in the simplest and yet most conclusive manner considering the “gross margin”.

The gross margin is a fairly simple way to compare profitability of an enterprise across different types of enterprises/products. “Gross margin” is the final income after all production costs have been subtracted from the sales income.

The time taken to get the profit should also be considered and for how long the profit will be enjoyed.

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(iv) Sustainability Analysis

This will consider the following:

Availability of service support for the product

Possibility of linkages to existing product-market chain

Ability to cope with the dynamics of production and market forces Social acceptability within the rest of the community

(b) Enterprise/Project Budgeting

The budget preparation will be done using standard formats to be provided under the Programme.

(i) Fund Size

The YLP will finance projects approved by the DTPC and endorsed by the DEC up to Ushs. 12.5 million.

The project funds will be disbursed in a single tranche.

(ii) Project Packaging

The budgeting for any project shall be based on standard packages that can yield meaningful benefit to the Youth and ensure sustainability of investments to be financed.

The packaging of project inputs will be done in terms of core inputs/items and essential/non-core inputs.

At least 80% of the budget should be committed to the core-inputs/items of the Project.

Project specific trainings will form part of the project packages.

(c) Project Proposal File

After Enterprise Selection and Budgeting, the YIG facilitated by the CDO and Sector experts, will proceed to complete the Project Application Form and create the Project Proposal File for submission to the Sub-county. The application forms will be serialized and issued free-of-charge by the Sub-county.

The Project Proposal File will comprise of the following documents:

(i) Report of the Beneficiary Selection process with attendance lists. (ii) Original copy of the Project Application Form (with a complete

budget, list of beneficiaries and passport-size photographs of each beneficiary)

(iii) Project Business Plan (iv) Valid Land Agreement (where the proposed project requires land).

A copy of the Project Proposal file shall be retained at the group level for reference purposes.

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2.4 Desk and Field Appraisals

On receipt of the project proposals, the STPC with the guidance of the CDO will constitute project appraisal teams of not less than three (3) members to undertake desk and field appraisals of the projects. The appraisal teams will be comprised of technical staff with good knowledge and understanding of the relevant sector standards and norms for the respective projects.

The desk and field appraisals are expected to be done within seven (7) days from receipt of the Project Proposal. Each project appraisal team will be headed by a relevant sector specialist and shall include the Sub-county Youth Chairperson. The Sub-counties are encouraged to ask for support from the DTPC in case of limited capacity to handle the project appraisals at the STPC level. The team composition should in addition, take into account issues of environmental management, gender, and other cross-cutting issues.

The desk and field appraisals will be done using the standard forms to be issued to each Sub-county.

(a) Desk Appraisal

Desk appraisal, involves review of the project documents submitted, to ascertain the following:

■ Completeness and accuracy of the project proposal documentation (i.e. Beneficiary selection reports, application forms etc.)

■ Conformity with sector standards and norms ■ Conformity with project guidelines ■ Viability and sustainability of the project ■ Appropriateness of the project budget

(b) Field Appraisal

After the desk appraisal, the appraisal teams will undertake field appraisal of each project at the respective proposed project sites. At this stage, the appraisal team will:

■ Verify the information provided in the application form/project proposal

■ Establish whether or not the group members actually exist and participated in the preparation of the proposal submitted.

■ Establish whether or not the intended beneficiaries are the right target and the selection was done in accordance with the Programme guidelines.

■ Review the project proposals for viability and sustainability ■ Establish the capacity of the community to implement and manage

the project ■ Assess gender responsiveness and equity sensitivity of the project

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■ Assess the compliance of the project with environmental and social safeguards requirements

■ Assess availability of land where applicable.

After the desk and field appraisals, the Sub-county Chief will forward all the projects that will have been recommended for funding to the Chief Administrative Officer (CAO) to initiate the process of approval by the District Technical Planning Committee (DTPC). The submission of projects by the Sub-county to the District for approval will include the following:

■ Forwarding letter by the Sub-county Chief (SCC); ■ Schedule of projects approval request (indicating project IDNO,

name, sector, category, location and amount); ■ Minutes of the STPC projects endorsement meeting; ■ Minutes of the SEC projects endorsement meeting; and ■ Individual group project files.

Each project file submitted for the approval of the DTPC should include the following:

(i) Report of the Beneficiary Selection process with attendance lists (ii) Original copy of the Project Application Form (with a complete

budget, list of beneficiaries and passport-size photographs of each beneficiary)

(iii) Project Business Plan (iv) Valid Land Agreement (where the proposed project requires land). (v) Duly completed Project Desk Appraisal Form (vi) Duly completed Project Field Appraisal Form

A copy of the Project Proposal file shall be retained at the Sub-county level for reference purposes.

2.5 Project Approval  

Project approval will be done by the DTPC. The District Youth Chairperson shall be co-opted to the DTPC to ensure continuous participation of the Youth in the processes. During the approval process, the DTPC reviews all the project proposals recommended by the STPC with a view to confirming the following:

♦ Accuracy and completeness of project documentation ♦ Compliance with Programme guidelines and procedures ♦ Compliance with sector norms and standards ♦ Appropriateness of the project budget (should be within the set ceilings) ♦ Viability and sustainability of the project ♦ Gender responsiveness and equity sensitivity ♦ Compliance with environmental and social safeguards guidelines.

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All the projects approved by the DTPC for funding, will be submitted to the DEC for endorsement before submission to PS/MGLSD. In Districts where there are Municipalities, the Municipality Technical Planning Committees (MTPCs) and the Municipality Executive Committees (MECs) will be invited by the Chief Administrative Officers and District Chairpersons to participate in the DTPC approval and DEC endorsement meetings respectively, whenever projects from Municipality Divisions are being considered.

(a) District Approval Thresholds

The DTPC will approve projects not exceeding the threshold of Ushs.12.5 million. In exceptional circumstances, any project with a budget in excess of this threshold and is deemed absolutely necessary, will be recommended by the DTPC and DEC for approval by MGLSD. The approval of such projects will be subject to an absolute cap of UShs.25 million.

The YLP Technical Support Team (TST) will review all project funding requests submitted by the districts and recommend them for final review by the National Technical Working Committee (NTWC). The NTWC will recommend approval of disbursement of funds to the approved projects by PS/MGLSD.

Timely feedback will be provided to the Districts, Sub-counties and Youth Groups on the funding decisions taken on the various project proposals received at MGLSD.

(b) Submission of Project funding requests:

The submissions of project funding requests to PS/MGLSD will include the following:

(i) Forwarding letter by the Chief Administrative Officer (CAO); (ii) Schedule of project requests (indicating project IDNO, name, sector,

category, location and amount); (iii) Minutes of the DTPC projects’ approval meeting; (iv) Minutes of the DEC projects’ endorsement meeting; and (v) In the case of projects above the District level approval threshold, the

submissions will in addition; include the original copies of the complete project files.

2.6 Fund Disbursement to Approved Projects

  Fund disbursement to the approved Youth Projects from MGLSD shall be done in two stages as follows:

(i) Disbursement to the District Youth Projects Account; and

(ii) Disbursement from the District Youth Projects Account to the Individual Youth Interest Group Project Accounts (in Commercial Banks of their choice; nearest to them). The Chief Administrative Officers (CAOs) will facilitate the Youth Groups to open the Bank Accounts.

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The Group Project Accounts shall only be opened after feedback on the approval of the projects has been given to the District and the District has done the training of the Groups concerned on their roles, responsibilities, and basic skills in financial management, community procurement, record keeping and general aspects of group projects management.

(a) Triggers for disbursement of funds to the Youth Group Accounts

Fund disbursement to the individual youth group project accounts will be on fulfilment of the following conditions:

(i) Opening of Group Project Bank Account (Current Account) in a Commercial Bank. The Account shall have 3 signatories (Sub-county Chief/Town Clerk, Chairperson of the Youth Project Management Committee, and Sub- Sub-Accountant/Finance Officer at Sub-county/Town Council/Division). All the 3 signatories shall sign at all times for transactions to be effected.

(ii) Project Financing Agreement between the District Local Government (represented by the CAO) and the Youth Interest Group (represented by the Chairperson of the Youth Project Management Committee)

Figure 1: Approval Process and Fund Access by Youth Groups  

 

 

 

 

 

 

 

 

 

 

 

 

        Funds flow                 Application and approval  

MINISTRY OF GENDER, LABOUR & SOCIAL DEVELOPMENT

DISTRICT LOCAL GOVERNMENT

SUB-COUNTY LOCAL GOVERNMENT (SEC & STPC)

YOUTH INTEREST GROUP (YIG)

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3.0 PROJECTS IMPLEMENTATION

The beginning of projects implementation under YLP will be marked by the projects launch.

(i) Project Launch

Project launch is a simple ceremony to be conducted by the Sub-county or District Authorities at each project site in the presence of the intended beneficiaries and the wider community. During the ceremony, the Local Leaders re-emphasize the obligations, and roles and responsibilities of the various stakeholders in project implementation. The key messages during project launch will focus on: transparency, accountability and value for money, monitoring and supervision, maximizing and sharing of project benefits, repayment of the revolving fund, and project sustainability.

(ii) Project Implementation Arrangements

The Youth Projects will be implemented by the YIGs themselves, through the elected Youth Project Management Committees (YPMCs) and supported by District/Sub-county sector experts and extension officers operating in the community.

Project implementation entails:

■ Implementation of approved project activities by the Youth Interest Group.

■ Procurement of project inputs. ■ Provision of technical support to the YIG by the sector specialists at

District and Sub-county levels. ■ Regular YIG meetings to receive progress and financial reports from the

YPMC/YPC, receive social accountability reports from the SAC, approve proposals of the YPMC and review the work plan, among others.

■ Submission of progress and financial reports to the Sub-county and District on monthly basis.

Management of Project Assets

The Project funds disbursed to the YIGs shall not be directly distributed to individual members as cash. The funds will be used to procure project inputs that will generate incomes for the YIG members according to approved project budget.

Two scenarios are likely to arise due to the varying nature of the enterprises and inputs to be financed, namely: (i) enterprises that can best be managed as a group e.g. metal fabrication, carpentry, hair-dressing, shoe making, fish farming, value addition/agro-processing etc., and (ii) enterprises that by nature of their inputs can best be managed at individual level e.g. dairy cattle, goat rearing, piggery, tailoring, bicycle repair, etc.

In the case of scenario (i), the enterprises will be managed as a group, while for scenario (ii), the productive assets will be shared equally by the individual

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beneficiaries after procurement, to allow them manage their mini-enterprises at individual level. However, in scenario (ii) arrangements must be made to ensure that some activities such as meetings, monitoring of individual members’ investments, savings, trainings, repayment of the revolving fund etc., are maintained at the group level.

(iii) The Roles and Responsibilities of Project Committees

The relationship between the YIG and the District Local Government will be based on a Project Financing Agreement, signed between the two parties. The Financing Agreement outlines the specific roles and responsibilities of the Districts and the YIGs in Project implementation. The YIGs will perform the following functions:

(a) Express interest to participate in Programme activities. (b) Participate in identification and prioritization of needs and projects to

address the needs. (c) Ensure that all members co-guarantee one another for purposes of

project implmentattion. (d) Elect the Project Committees i.e. the Youth Project Management

Committee (YPMC), Youth Procurement Committee (YPC), and Social Accountability Committee (SAC).

(e) Identify a Recommender from among the prominent persons in their community.

(f) Undertake community-based procurement. (g) Participate in the implementation and monitoring of the projects. (h) Operate and maintain assets/inputs acquired through the Project funds. (i) Ensure timely reporting and accounatility on progress in implementation (j) Ensure timely repyament of the revolving fund.

Youth Project Management Committee (YPMC)

Each YLP project shall have a Youth Project Management Committee (YPMC) comprising of five (5) members, democratically elected by the YIG during the EPRA. The YPMC membership will have at least 30% female. The executive committee of the YPMC will be comprised of the Chairperson, Treasurer and Secretary.

The main function of the YPMC is to ensure effective implementation of the project funded in accordance with the Programme Guidelines, and the Financing Agreement. The specific roles and responsibilities of the YPMC include: (a) Mobilizing project beneficiaries to actively participate in project

implementation; (b) Ensuring that the project records are accurate and properly maintained. (c) Award contracts to contractors or service providers selected by the Youth

Procurement Community (YPC)

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(d) Monitor and supervise contractors or service providers involved in project implementation

(e) Make payments for all eligible expenditure according to the approved project budgets and contract documents

(f) Initiate review of project implementation work plans and procurement plans for approval by the YIG

(g) Prepare and submit monthly project progress and financial reports to the CDO for onward submission to the STPC and DTPC.

(h) Ensure regular feedback to the YIG on progress on project implementation through monthly YIG meetings

(i) Ensure value for money, and timely accountability for all project resources disbursed to the community

(j) Ensure timely repayment of the Revolving Fund (k) Ensure equitable sharing/distribution of project assets/benefits among the

YIG members (l) Represent the YIG in dealings with third parties on project related

matters. (m) Ensure safety of project assets (n) Plan for and ensure sustainability of project assets/benefits

Youth Procurement Committee (YPC).

The YPC is comprised of 3-5 members elected by the community during the EPRA process. The Committee shall have a Chairperson, Secretary and 1-3 other members depending on the size of the YIG. At least 30% of the membership of the YPC shall be female. The YPC is responsible for the selection of suppliers and service providers of all goods and services required in the implementation of the project. The specific functions of the YPC include the following:

(a) Prepare Procurement Plan in a participatory process involving the entire YIG and the relevant sector experts (First plan is done before submission of the Project Proposal to the Sub-county)

(b) Review the Procurement Plan (c) Issue invitation for bidders in public places and/or on public media (d) Receive bids or quotations (e) Conduct public opening of the bids/quotations (f) Evaluate bids/quotations with guidance of technical persons from the Sub-

county or District. (g) Select and recommend the best evaluated bidders for award by the YPMC. (h) Write letters to the YPMC accompanied by minutes of the procurement

committee informing them about the outcome of the bid evaluation. (i) Maintain all procurement records. (j) Monitor administration & management of contracts by the YPMC.

For purposes of clear division of roles between the YPC and YCPMC, the YPC will only be involved in the selection of suppliers and service providers and not in the payment for the goods and services provided which will be the responsibility of the YPMC.

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Social Accountability Committees (SAC).

Each project shall have a Social Accountability Committee (SAC). The SAC will be constituted by 2-5 democratically elected members of proven integrity (depending on the size of the YIG). The SAC shall meet at least once every month and shall submit its reports to the Sub-county CDO/ACDO and YIG on monthly basis.

The SAC will be focused on cases of:

(a) Collusion (secret or illegal cooperation to divert or pervert project resources, including manipulation for selfish interests);

(b) Corruption (dishonest and fraudulent conduct of power and office holders, typically involving soliciting and/or accepting bribes and any other illicit activities and conduct);

(c) Inequitable sharing of project resources and benefits; (d) Gender exclusion and deliberate or ignorant obstruction of achieving the

project’s gender equity process and output targets; and (e) Nepotism (misuse of station, power and influence to benefit relatives and

friends)

(iii) Community Procurement

In simple terms, Procurement is a process of obtaining goods or services of the right quantity and quality, at the right time, in the right place, from the right source and at the right price or cost.

A good procurement process emphasizes fair competition, transparency and value for money.

Procurement of goods and services for Youth projects under YLP is a responsibility of the YPC and YPMC, guided by the relevant sector experts at the Sub-county or District. The YPC and YPMC shall seek technical guidance from the relevant sector experts at Sub-county or District. Simplified community procurement guide, formats and forms shall be provided by YLP to facilitate the community procurement processes. Given the nature and size of the procurements to be done by the YIGs, the following methods of procurements will be applicable:

(a) Open Domestic Bidding (b) Selective or Restricted Bidding (Local shopping) (c) Single Sourcing

(a) Open Domestic Bidding:

Open Domestic Bidding method of procurement involves the following:

◘ Placing a specific procurement notice at the local notice boards at village or sub-county or district level or on public media for at least 14 days; indicating the date, time and place for public bid opening and the deadline

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for submission to allow bidders ample time to prepare and submit their bids.

◘ Public opening of the bids in the presence of the bidders and YIG members.

◘ Examining or evaluating the bids. Those that do not meet the minimum specifications in respect of quality, services offered, and the delivery dates are eliminated.

◘ Selecting the bidder who meets the minimum requirements and offers the lowest price.

◘ Announcing the award and amount of the contract to all bidders and signing the contract within 5 working days of the announcement.

(b) Selective or Restricted Bidding (Local Shopping):

Under the Selective or Restricted Bidding method of procurement:

◘ An invitation to bid is sent to a minimum of three bidders that the procurement committee has identified.

◘ Simplified quotation forms that include description of the goods or materials, detailed specifications, and payment terms are used.

◘ The lowest evaluated bidder is awarded the contract on the basis of the set criteria.

This method is most appropriate for simple or locally available goods and services.

(c) Single Sourcing

Under this method, the YPC identifies and selects a supplier or service provider familiar to the community; negotiates a price with him or her and recommends to the YPMC to award the contract based on the agreed price to ensure value for money. This method shall be used in exceptional case where:

◘ A competitive method is not practicable to the community and there is only one known source;

◘ The cost of the procurement using another method would be disproportionately high relative to the value of the procurement itself;

◘ When there is an emergency; and ◘ It is down-stream assignment on a previously awarded contract on the

basis of the two methods above.

The YIGs shall involve the relevant sector experts in the preparation of simple bid documents and in the bid evaluation, to ensure sector standards and norms are adhered to. The YIGs should avoid as much as possible, involving “middle-men” in the procurement process. Payments to suppliers or service providers should be by cheque, where possible.

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Procurement Records

The YPMC shall be responsible for keeping all procurement records for each procurement /contract entered into. All procurement documents shall be filed for review. The file will contain the following records:

◘ A request for procurement ◘ Copies of quotation forms sent to suppliers or service providers ◘ Copies of quotation forms duly filled by the supplier ◘ Records and minutes of bid opening ◘ Records and minutes of bid evaluation ◘ Copy of the quotation analysis form ◘ Copy of the purchase order issued or copy of the contract duly signed ◘ Record of delivery notes ◘ Copy of invoice or demand note by the supplier ◘ Copy of payments details ◘ A receipt from the supplier or service provider acknowledging receipt of payment

for goods supplied or service provided  

4.0 REVOLVING FUND MECHANISM  

The Funds under YLP will be administered as Interest-free Revolving Funds to ensure sustainability of the Programme. The revolving process is structured as follows:

(i) Terms and Conditions of Repayment

◘ The scheduling of repayment of the Revolving Fund will be based on the Project maturity period, and the cash-flow projections generated at the design of the Project (or otherwise reviewed).

◘ The number and amount of instalments shall be agreed upon mutually between the YIG and the District during the signing of the Project Financing Agreement.

◘ The Revolving Fund is interest-free

◘ The repayment period shall not exceed 36 months (3 years). ◘ A service fee of 5% (to cater for inflation) will be charged on any

outstanding balance at the end of the first 12 months (1 year) from the date of signing the Project Financing Agreement.

(ii) Grace Period

The grace period, like the overall repayment period will depend on the nature of the enterprise. It will be agreed upon mutually between the YIG and the District on consideration of Project maturity period and cash-flow projections.

(iii) Forms of Repayment

The repayments may be done in form of cash or in-kind. The youth undertaking enterprises such as vocational skills development, value addition, trade etc., will make their repayments in cash, while others involved in

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enterprises such as piggery, heifer rearing, goat rearing etc., where off-springs will be produced, will have the option of repayment in-kind. Where the option of repayment in-kind is taken, the inputs or items will be verified for quality compliance by relevant sector experts at the district or sub-county. This form of repayment will be acceptable if there are YIGs with the same type of project that have been approved and are willing to accept the inputs or items being transferred to them. In case complications arise in form of ensuring quality of inputs, costs of transfer, and guaranteeing acceptance by the groups that the inputs are to be transferred to, YIGs may be encouraged to make repayments in cash.

(iv) District Collection Account

◘ With the approval of the Accountant General, each District will open a special Collection Account for the YLP Revolving Fund (separate from the Account handling direct Disbursements from MGLSD.

◘ All YIGs will deposit their repayments into the District Collection Account for the Revolving Fund and receive a receipt from the District for every instalment made

◘ Funds in the District Collection Account shall not be used for any other purpose other than financing approved Projects for new Youth Interest Groups. These funds shall be remitted to Bank of Uganda National Revolving Collection Account unless authorized by the Accountant General to be used at Source as a Non Tax Revenue.

(v) Monitoring of Repayments

◘ The repayment schedule shall form the basis for monitoring the performance of YIGs in terms of repayment of the Revolving Fund.

◘ The Districts shall maintain a ledger for each YIG for purposes of reporting on the repayments on monthly basis.

◘ The Districts shall submit financial reports on the status of recoveries of the Revolving Fund to PS/MGLSD on monthly basis.

◘ The Districts and Sub-counties shall issue demand notes for repayment to all defaulting YIGs on monthly basis.

(vi) Handling Default

The YLP Project Cycle processes have in-built measures of minimizing default. In the event that perpetual default occurs the following will be done:

◘ The District and Sub-county shall establish the cause of default in each Project. This will involve visiting the individual Project sites.

◘ If the reasons for default are genuine, the District and Sub-county shall then assess whether it will be helpful to reschedule the repayment. In this case, the District and YIG shall draw a new repayment schedule which should strictly be monitored and enforced.

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◘ In case the default is as a result of a disaster that led to a significant damage to the Project, the district and sub-county will assess the extent of the damage and recommend appropriate action to be taken by MGLSD.

◘ If the default is a result of shear stubbornness, negligence or poor management of the Project, the following measures shall be taken:

- Invoking guidelines on the roles of the co-guarantors that make the YIG members individually and severally liable in case of default.

- Naming and shaming of defaulters on Public Media.

- As a last resort, involve the law enforcement arms of Government to recover the funds. This may involve confiscation of assets acquired through the Revolving Fund and/or any other property of the affected YIG or individual, and prosecution.