HINIST .'iY Pi\PFP. NO. . . . . 2!~NAL liBRARY OF JAMAICA

P~OBLEHS :!::N 1~}fPlENF.NTIPG T·XrE·-.NALL': I"'NAN(;ED PiiO.JECTS

H··mb · rs of this Honournble House will have been ~wa r e that th r~ Government of

J :Jmaic.:~' G P"rform.:Jnce in proj ect impl0mr~ ntation h.::1s not b~en satisfactory. This is

not uniauc to Jamnic.9, it is 8 common fcat•Jre oE d0veloping countries and in fact,

Jnmoica's nerformance compar e s reasonably well with other smal l Latin American

countriPS. N~vertheless, it is cruci~l that we improve our pro ject performance os

this will h 0lp in the solution of the economic crisis in two ways:

(a) by upping the rote of investment and the level of ·production;

(b) by incrensing the inflow of foreign exchange (since lll8ny also

projectsLreceivG foreign exchnnge financing for local costs).·

2. Probletls causing poor implementation rr.corri ore:

(a) inode~uatP preparation of the project. In many ~nses

impl emcntntion ~roblems ( ~g s. staffing, training, budgetary

allocation) were not onticipated when the

proj0ct was planned ~nd therefore the corrective action is

taken b t,..r ra thor than early.

(b) most Hinistries and Government Agencies charged with the

ad~inistrotive responsibility for preparing and implementing

projects are neither orgonized nor staffed for this purpose.

Government of Jamnica departments tend to be organized. to per-

form housekeeping or regulatory activity rothr.r than the

decisivP. 'burst of activity' which project work requires.

This is also an nttitudinal problen.

(c) th e support s e rvices that need to be provided to pro jects in

a p.nticular Hinis try by other Minis tries/Depnrtr:~ents are not

ade~uate and ore poorly organized.

Action being taken to solve problems :

(a) a nroject cycln has been s~t up for all projects which are ~ore

than n certain size (J$1 million in cnpital cost) and which in-

volvc rx t crnn l _llnn ncing. ThPr0 l1T0 sor.'V' 80-90 of these pro-

jectn pr esently being work r. d on.

The Basic Projf'r.t L'ist (nt t.:H.: lF·d) inclu•\ ' nbn ut !32 of these in addition to 20

on-going studiPs and 21 possibl0 proj~cts in the ideas stage, Sec Appendix I.

The institution of a project cyclP atter:1pts to ensure that p'rojects are

od0~untcly pr r pored on•! that the requirements for speedy implementation Dre anticiry ~ tc~ ani provided Th 0re ore two key points in the cycle:

2.

1. Pr~-snl ection . A committeP (which includes N.P.A.,

Town PL:mning, l1inis try of l'in.::~nce - Budget Division,

Ministry of the Public Service os well as experienced

implementation ag enci es such ~s U. D. C. nnd N.D.A.) determines

if a project is potentially feasible. If thr! decision is Y£!}_

then th~ responsible agency proceeds to prepare feasibility

studies etc. and the other relevant Government Agencies egs.

Budget Division, Town Planning etc, begin to preoore their

n~cessory inputs.

2 . Anpr.:J iso 1. After fe.:Jsibility studies .:Jre completed, the

proj0.ct is nopraisP.d by .:t committee which recommends to Economic

Council: whPth ~ r to proceed with the investment; the terms to be

negotiated with foreign lPoders etc.

(b) So~?cicl steps ore being taken to ensure that the ~roper orgnnizction

. (c)

is set up :md 2 c~ · oun t e staffing is SPcured for projects. This in-

volv~s the folbwing:

(i) where the project is a commercial op0r.:1tion a sepcr.::~te puplic

enterprise is PStablished egs. IID ~O, Black River Upp0.r Mor.:Jss

Development, ~ornwe ll D.:Jiry ;

(ii) where the proj ect is !lOt commercial but neither is it a routine

administrative activity of the particulc r Ministry .::~ sepcrot0 nroject

unit is est:Jblished wi t h its own accounting etc. (egs. Sites 1.lnd

Services) ;

(iii) wherE> the proj ect i s ra r t of tht! normol administration egs.,

agricultural research so thnt a separate unit is not prncticnble, ., .,

we try to ensure thnt the posts are given priority and the re-'.

ouired classification leve l.

'The MPS has agreer:l thnt steff employed on i~tern.'ltionally

fin::~nced projects will bP P.ntitled to receive a 25% 'topping up' during

the period thnt th0y work on such n proj 0c t.

ImprovPm~" nt of th1~ support s r>r'vic cs for proj ects is being tack'lerl by. three

org.:miza tions:

(i) Th0 ProjP.ct AnalyGis and Monitoring Comryony, an Agency of the Ministry

of Financ r> , hns oeen 0stablished as .:J subsidiary of the Jamaica National

Investment :omp.:Jny.

I j

I I J I I I I I

I

. 7. ;}a

( i) Cont' d

This Company monitors progress of project preparation and implementation;

ensures co-ordination of the necessary Government Agenci es , reports to

Economic · Council on progress and problems of projects. It also manages a

Pre-investment Fund, financed by IADB and a Project training team which is

financially supported by USAID. Details are at Appendix II.

(ii) Management Services Unit

The Government of Jamaica, the UNDP and the World Bank have recently

initiated a project which will assist Jamaica in ~mproving the implementa-

tion of public sector projects. The project , which is being financed by

the UNDP and for which the World Bank is the executing agency, is provid-

ing assistance to form a Management Services Unit in the Jamaica National

Investment Company (JNIC) which would, inter alia :

(a) Devel op a system for identifying key positions in the management and

·execution of development projects in the public sector which are un-

filled, and which cannot be filled through normal civil service

channels, and provide JNIC with a national and international recruit-

me nt capability.

(b) Develop a system for monitoring the execution of public sector inves~-

ment projects and provide assistance in the implementation· and opera-

tion of the moni taring system in conjunction ·,.ri th PA.tviCO.

(c) Provide assistance to Government ministries and agencies in the design

and implementation of systems for implementing development projects.

The project comprises two interrelated components: one being assistance in

recruiting expatriates and Jamaicans to fill key positions within the public

sector projects, the second is the development of a management consulting

capability available to public sector projects.

The last several years have witnessed a significant emigration of key

manaccrs, professionals and technicians fr om Jamaica . ~he emigration has hurt

all sectors of Jamaican economic life, but part icularly Central Goyernmcnt ·

ministries. The proposed project ·is an attempt to reverse the brain drain.

Internati onal and bilateral agencies would have an opportunity to participate in

the program by providing personnel , or in pr oviding resources b~ which the

Gove rnment c ould hire personnel. Res ources could be in the form of

4.

local currency financing from the Caribbean Develop~ent Facility (CDF), or

through foreign exchanee loans or grants.

(iii) MPS - hdministrative Staff Coll ege , in coll3boration with the

Project Deve lopment Resources Team of the Project Analysis and

Monitoring Company is giving heavy eraphasis to training .in

~reject preparation and implementation.

4. Conclusion

Th e provision of these services should improve the Government's

performance in the implementation of the Foreign Financed Public

Investment Program~e.

File No.46/054

ERIC BELL MINISTER OF FINANCE AND PLANNING ~3th June, 1979

APPENDIX II

PROJECTS ANALYSIS & MONITORING CO. LTD.

For some years the Ministry of Finance and Planning included

a Projects Division which had three (3) main functions:

2,

(a) assisting ministries in the preparation,

analysis and monitoring of major projects

and in identifying possible sources of

finance;

(b) managing the Pre-Investment Fund, a fund

partially financed by the Inter-American

Development Bank (IDB);

(c) training the project staff of ministries and

agencies on the job in areas of project prepara­

tion and management. This section known as the

PROJECT DEVELOPMENT RESOURCE TEAM has been assisted

by the US/AID Team.

During the past year the division, headed by a Director, was

comprised of five (5) other officers out of a complement of 18, distributed

in three units as follows:

Unit A. Analysis and Monitoring (including technical

secretariat for Pre-Selection Committee) -

2 Officers N.P.S. III

P.M.A. III

Unit B. Analysis and Monitoring (including management of

Pre-Investment Fund) -

1 Officer Contracted for three years, beginning 1976.

Unit C. Project Development Resource Team -

2 Officers 1 on secondment from Ministry of Agriculture

1 contracted.

Unit C is supported by two Consultants obtained under a US/AID Technical

Assistance Agreement for the programme.

3. Although the technical staff complement required for the diviaion

was eighteen it became increasingly difficult to recruit and retain suitably

qualified persons, and this contributed to the inability of the division to

carry out its functions satisfactorily. This situation led to dissatisfaction

particularly on the part of international agencies, and even seemed likely to

/prejudice •.••

' •./' - 2 -

prejudice our obtaining further grants and concessionary loan funds for

the Pre-Investment Fund and technical assistance for the training component.

4. The work of that division was of vital importance to the

efficient development and implementation of major projects. It was essential

to be able to recruit and retain suitable personnel with specialised skills

and exper,ience necessary to prepare and monitor the increasingly wide range

of cajor projects.

It

therefore berce.me necebsary to find a device that would permit greater

flexibility in recruitment procedures in order to facilitate speedy

selection when suitable skills were identified and to allow a variety of

contract personnel to be employed as and when necessary. Further, this

device would minimize the considerc~le difficulties which ensure when

remuneration of contract staff is JllUCh gr eater than that of permanent staff.

who are performing the same function,

5. It was accordingly been decided to establish a company as a

subsidiary of the JAMAICA NATIONAL INVESTMENT COMPANY but operating as an

agency of the Ministry of Finance funded from the Consolidated Fund. This

Company is called the PROJECT ANALYSIS AND MONITORING COMPANY which was

incorporated on the 26th March, 1979. The technical organization! structure

of the company is shmm below:-

mhT A Analysis/Monitoring/ Pre-Selec,tion:

5 Officers

ManaginglDirector

UNI B

I Analysis/Honitoring/ Pre-Investment Fund:

4 Officers

UNI~ C

Project Development Resource Team:

4 Officers

The ~isting staff members of the Projects Division have now been assigned

to the Company and a request is before the Ministry of the Public Service who are to be

to have the Civil Servants &ppointed to the Company, declared as Public

Officers within the meaning of the Pensions Law while other staff will be

employed on contract.

/Salaries

./ - 3 -

Sa laries of the officers are within the guidelines laid dmvn by the

Ministry of the Public Service to enable Hinistries to employ suitably

qualified and experienced staff for the implementation of projects which

are funded by international agencies.

6. It is proposed that a total of fourteen (14) experienced profes-

sionals be appointed to carry out the following functions:-

Units A & B:

(i) assisting ministries in the identification and definition

of projects;

(ii) appraisal of project profiles and preparing issue papers

for Pre-Selection Committee;

(iii) technical secretariat for Pre-Selection Committee

(Unit A only) ;

(iv) maintaining a register of consultants from which ministries

may choose consultants for studies (Unit B only);

(v) assisting ministries in preparing terms of reference for

consultants;

(vi) assisting ministries in the selection of consultants and

in negotiating the terms of the contract;

(vii) monitoring studies;

(viii) appraising studies;

(ix) advising Economic Council on investment proposals;

(x) carrying out preliminary negotiations with potential

international financial agencies;

(xi) assisting in loan negotiations;

(xii) monitoring projects

(xiii) assisting in formulation of the public investmenl programme;

(xiv) assisting in preparation of the capital budget;

(xv) management of the Pre-Investment Fund (Unit B only);

(xvi) verifying vouchers for payments from the pre-feasibility

studies vote.

Unit C:

(xvii) training on the job in the classroom, personnel from

Ministries and Agencies in project formulation, profile

preparation and appraisal, and project management;

(xviii) developing and preparing up-to-date training materials

and manuals for project courses;

I (xix) •••

7.

. .

- 4 -

(xix) providing technical assistance to the Staff College

in its training programmes, and in developing its

training materials;

(xx) providing the Staff College with information on public

officers who could benefit from further training.

Relationship with International Agencies:

EEC/EDF: Individuals in the Projects Division who were named

as Deputy National Authorizing Agents by me for the EE /EDF arid who have

been assigned to the Company continue in their role and the Company now takes

on the functions previously performed by the Projects Division as liaison·

between the Representatives of EEC/EDF and the Government of Jamaica.

IDB: As in the ~ase of the EEC, Company employees have been

authorised to sign on my behalf in making returns to the rnn on the use of

the Pre-Investment Fund, and in requesting reimbursement or direct payments

out of the Fund.

In the case of other international agencies, the Company discusse~

possible projects, progress and problems with on-going studies or projects

in the implementation stage.

Relationsh~Q_~ith_!he Ministry of Finance: ·

8. The Board of Directors of the Company is appointed by the JNIC

in consultation with the Minister of Finance. The Managing Director of

the Company attends Senior Staff Meetings of the Ministry of Finance as

well as weekly meetings of the Development Division. Monthly Reports will

be submitted to the Financial Secretary. . In short, the Company retains

the same relationship with the Ministry of Finance that obtained with the

Projects Division.

Relationship with the Economic Council:

9. The Managing Director of the Project cOmpany now replaces the

Director, Projects Division on the Economic Council and will continue to

send reports to the Council.

10. The new arrangements described above would permit the Company to

recruit adequate staff to provide the services of appraising and monitoring

of projects, of managing the Pre-Investment Fund, and of training,