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Government of Sierra Leone
Application Pack for the WASH Facility
Contents:
Guidelines for Applicants
Associated Documents:
Concept Note Template
Detailed Budget Template
February 2012
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Introduction
(i) Overview of the WASH Facility
The UK Department for International Development (DFID) is supporting the Ministry of Energy & Water Resources
(MoEWR) & Ministry of Health & Sanitation (MoHS) in the implementation of the National Water & Sanitation Policy. As part
of this support programme, DFID has committed to support a ‘WASH Facility’ for Sierra Leone. The ‘WASH Facility’ will be
used to complement the other aspects of the WASH Support Programme, particularly through funding key innovative
WASH projects.
The WASH Facility is a £5m multi-purpose funding opportunity to finance WASH-related projects in Sierra Leone
(<$300,000), for innovation, research, capacity building, pilots, and to catalyse private sector involvement. The fund is
demand driven, and applicants will apply to the grant for funding of their project idea. The fund is national and projects may
be implemented anywhere in the country, and whilst the main focus is on rural areas, projects focussed on peri-urban and
urban areas can definitely be considered.
Potential applicants for financing from the WASH Facility include Government, Utility companies, Local Councils, local and
international NGOs, UN Agencies, academic organisations and private sector entities.
The WASH Facility fund will be administered on behalf of the MoEWR and MoHS by Adam Smith International (ASI); an
international consultancy firm already engaged in the WASH Support programme through providing Technical Assistance to
the WASH Sector in Sierra Leone.
Decisions on which projects the WASH Facility will fund will be decided by a ‘Project Selection Group’ (PSG), which
comprises of the MoEWR, MoHS, ASI, and DfID.
The Facility will be ‘open for business’ to receive applications from February 2012, and is initially designed to fund projects
up until February 2014.
(ii) What is the Purpose of this Document?
This document is designed for organisations or individuals interested to apply for support from the WASH Facility fund. This document is to inform potential applicants:
What types of projects the WASH Facility is interested to fund
How to apply to the WASH Facility with a project idea
What is the process of application to the grant, and how projects are selected for funding
What are the features of a ‘good’ application and give guidance on the application
Give some details about contracting and mechanisms for funding projects under the WASH Facility
Additional documents needed for the application of a concept note to the WASH Facility are:
WASH Facility_Concept Note Template.doc Budget Template for WASH Facility Applications.xls
The contact details of WASH Facility staff, should you require further information/guidance on the WASH Facility.
What is the Purpose and Objectives of the WASH Facility?
(iii) The Purpose & Scope of the WASH Facility
The WASH Facility is to finance projects that help to drive positive change in the WASH sector in Sierra Leone, through developing sector learning, developing capacity, and testing innovative ideas and approaches for WASH service delivery. Below are some key points on the purpose of the WASH Facility:
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To contribute towards the attainment of the objectives of the National Water & Sanitation Policy and other key
sector Policies (e.g. Environmental Sanitation Policy , Integrated Waste Management Policy, National
Decentralisation Policy)
To generate or drive change in the sector, that can be replicated or scaled up
To contribute to universal, equitable and affordable access to improved WASH services and environmental
health conditions in Sierra Leone
To develop the capacity of stakeholders in new roles for improved WASH services (to regulate, manage,
coordinate, finance and implement etc)
To drive sector learning, evolution and evidence-based interventions in the WASH sector of Sierra Leone
Below are some points on the scope of the WASH Facility:
Eligible applicants include central government entities, local government/councils, SoEs, NGOs, research and
academic institutions, UN agencies, consultancies, private sector..
The main focus of the WASH Facility is to fund Rural WASH initiatives, although Urban and Peri-Urban
projects can definitely be considered
There is no specific area of geographical focus for the WASH Facility within Sierra Leone
Most projects will be ‘demand driven’ (e.g. project ideas coming from applicants), however the WASH Facility
Management may also identify key sector potential projects and encourage the most appropriate/qualified
organisations to take on the ideas and apply to the grant (pro-active project identification).
(iv) Core Themes of the WASH Facility
There are five core themes for the WASH Facility (outlined below). Applications to the fund should be aligned to one or more of these themes. This means one project can address more than one themes.
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(v) The WASH Facility is NOT Aimed at..
General ‘coverage approach’ WASH programmes and WASH infrastructure without clear replicability or
innovative approaches that require such capital expenditure. This means that projects for ‘general’ water and
sanitation infrastructure, that are not specifically addressing one of the 5 core themes, and do not have a
strong potential to change the way the WASH sector in the country works, are unlikely to be financed.
‘Reinventing the wheel’ on research/piloting already undertaken (without clear justification of current sector
need in SL)
Financing/subsidising recurrent costs of WASH service provision (e.g. financing daily costs of supplying water
and sanitation services (unless a necessary component of the pilot project, and with a clear exit strategy).
Financing capital investment without clear and realistic exit strategy and future financing arrangements
Significant financing of non-project related equipment/infrastructure (vehicles, office construction/equipping
etc) – such items can be included, but must not be a major component of the project’s budget or focus.
What are the Key Features of the WASH Facility Funding Opportunity?
This section presents some basic information on the conditions on the funding of projects through the WASH Facility.
Eligible applicants include central government entities, local government/councils, SoEs, NGOs, research and
academic institutions, UN agencies, consultancies, private sector. Applicants may have to pass ‘due diligence’
checks to receive funding support from the WASH Facility.
Partnerships are not a requirement, but may be seen positively where they involve transfer of capacity and
improve sustainability of the project. Also where the technical quality of the project can be maximised by
involving specialised partners/advisors.
Normally there would only be one contract per project, and this would be with the ‘lead’ partner. Finances
would be disbursed to this partner, who would then disburse to other partners. The lead partner would be
accountable to ASI for the project funding, and the signatory on the contract.
Grant sizes range from £25,000 to £200,000 per project, although smaller and larger projects can be
considered.
The projects can be implemented between March 2012 – February 2014
There are no specific ‘call for proposal date’ for the WASH Facility – applicants may apply to the grant at any
time between February 2012 and February 2014. However applicants are encouraged to apply early due to
fund availability and to give adequate time to implement and monitor the project.
There is no limit to the number of applications an organisation may submit, and organisations may receive
multiple grants for different projects.
Budget: there should be a maximum of 75:25% Project costs: Direct Project Support costs. Support costs
include costs such as administration and logistical costs, office running etc. Indirect costs must not exceed
7%, but may not be relevant for some organisations. Information in the budget is on the Budget Template for
WASH Facility Applications.xls
Co-funding is not a requirement, but projects that bring co-funding or lever resources (e.g. private sector
investment) into the sector will receive a bonus score during the appraisal of the application. Private sector
applicants must provide matching funds of 50% of their involvement in the overall project budget.
Depending on the results of the pre-audit of applicants, and the applicant/project type, the WASH Facility may
support the project through different mechanisms (advanced based fund disbursements, invoice based
payments, direct procurement and supply by ASI). This is detailed later in the document.
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How Can I Apply to the WASH Facility?
(vi) Overview of the Application Process
The WASH Facility can fund projects from a range of types of organisations. For eligible applicants interested to apply to the WASH Facility with a project idea, they must go through the formal application process: The applicant first discusses their idea with the WASH Facility Manager (contact details at the end of this document). If the project idea is appropriate for the WASH Facility (and if the applicant is eligible for support), the applicant will be encouraged to develop and submit a concept note (using WASH Facility_Concept Note Template.doc). Approved concept notes will be encouraged to submit full proposals. If the full proposals are approved, ASI develops a contract with the applicant, and supports the project. The template for the Concept Note is attached to this document.
(vii) How is the Application Appraised?
Once the application (Concept Note) is received, first the WASH Facility Manager reviews and may give feedback/support to the applicant to develop the idea or improve the application. Before the application is passed on for review, the WASH Facility Manger undertakes a ‘hurdle assessment’ of the project and applicant. This assessment checks that the project fits the scope of the WASH Facility, checks if the partner is eligible for support from the WASH Facility, and if they have capacity of the organisation to undertake the proposed project. This is basically a pre-screening to ensure the Project Selection Group receive good quality and viable applications. Once the application is of acceptable quality, and if it passes the hurdle assessments, the application (concept note) will be logged into the WASH Facility Projects system, and submitted to the panel for review. The applications are reviewed by a panel called the ‘Project Selection Group’ (PSG), comprising of representatives from the MoEWR, MoHS, ASI and DfID. The frequency of the meetings of the PSG will depend on the volume of applications received, but are provisionally set to be monthly. The PSG appraises the project , and develops decisions based on a consensus of the group. The PSG can: Accept; decline; accept on conditions; request re-submission of Concept Note. Feedback from the appraisal will be communicated to the applicant by the WASH Facility Manager. The process for the review of proposals is the same. Please note that whilst the WASH Facility Manager can encourage an application, and give technical support to the applicant, it is the PSG that decide on whether to fund the project, not the WASH Facility Manager.
(i) WASH Facility Manager Support to the Applicants
The WASH Facility Manager may provide support to the applicants in the following ways:
Discussing project ideas with applicants and refining/evolving the idea and ensuring that it fits with the scope of the WASH Facility
Provide advice and feedback to applicants on their draft applications. The WASH Facility Manager may, depending on need, project potential and availability, provide mentoring or review support to applicants to help to improve and strengthen the quality of proposals and concept notes that go to the PSG.
Facilitating ‘matchmaking’ of ideas and organisations with other organisations who may be specialised in areas of the project/have similar objectives.
Idea Concept Note Proposal Implementation
Monitoring and Evaluation
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What Makes a Good Application?
This section details the requirements of applications, and provides guidance to the applicant on areas to focus on in the application. This is aimed to support the guidance notes in the concept note template (attached) and proposal template. Applications/proposed projects ideally should:
Be clearly sustainable, with a time-bound exit strategy
Be clearly aligned/contributing to the objectives of key WASH sector policies (e.g. the National WASH Policy, and/or other key policies such as Environmental Sanitation Policy , Integrated Waste Management Policy, and the National Decentralisation Policy etc.)
Be replicable and provide opportunity for scaling up in the sector, or precipitate clear change in the sector
Be orientated to maximising sector learning and dissemination/scale up of pilots and studies, to benefit the sector as a whole
Demonstrate a clear need and gap in the sector for the proposed activities, including evidence of coordination to ensure they are/have not being addressed by another programme or funding system
Be developed in consultation with all relevant stakeholders, and demonstrate the buy-in of relevant stakeholders (and coordination to ensure no overlap or duplication would happen)
The applicant should clearly state their capacity to implement the project to budget, within the timescales, and to a high technical quality. Where the partner lacks key competencies, or is not a sector specialist in the field, the applicant may be encouraged to partner with relevant organisations to guarantee capacity and upmost quality of project outputs.
Applicants are advised to obtain a letter of support/recommendation from the relevant local or national
authority if possible/appropriate, detailing their awareness, interest and potential commitment to the proposed project. It is acknowledged this may not be relevant/ achievable for all applications.
For applications from Governmental organisations or local councils, the applications should ideally be signed by the head or senior management of the organisation, plus a signature from the head of the financial department of the organisation.
Contact Information for the WASH Facility
For any questions or queries relating to the WASH Facility, applications and procedures, and for support on applications, please contact the WASH Facility Manager, who would be happy to help. His contacts are:
Will Tillett (ASI WASH Facility Manager – based in Freetown) Mobile: +232 (0)78627621 Email: [email protected] Office: Ground Floor PSRU Building, No. 8 Wesley Street, Freetown. Please organise a meeting in advance of coming to the office.
Annex 1 : Detailed Information for Applicants
Attached Documents:
WASH Facility_Concept Note Template.doc
Budget Template for WASH Facility Applications.xls
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Annex 1: Detailed Information for Applicants
This section provides more detailed information to interested applicants on aspects of financing mechanisms for supporting projects; reporting requirements and procurement and compliance. It also touches on monitoring and evaluations. If the application is successful, a full contract would be developed with the applicant, where much of the contractual aspects would be clearly stated. A meeting would be held with the applicant to discuss all of the requirements and terms and conditions of the fund. This section simply serves as an overview as to what to expect from the contract.
1.1 Financing Projects
(ii) 3 Types of Financing for Projects
There are three ways in which the WASH Facility can financially support projects. These include:
a) Advance Based Payment (quarterly tranches)
The partner develops their budget based on quarterly tranches. On signature the first tranche is advanced.
Subsequent advance disbursements can only be done once the former tranche is ‘liquidated’ by the partner submitting
financial (and narrative) reports to ASI covering the quarter. ASI would aim to disburse the subsequent tranche within
15 days of receiving the partner’s complete report (this timescale depends on the completeness and quality of the
report and excludes any delays due to queries on the report/expenditures).
In this system partners would normally be responsible for their own procurement, but some items may be supplied ‘in
kind’ by the WASH Facility if appropriate.
A retention amount would be held for the final disbursement until the final report is received from the partner, and all
outputs are verified and acceptable by ASI. ASI may commission an external audit on the partner at any time once the
project is funded, financed by ASI.
This system would typically be applied for INGOs and LNGOs, subject to the results of the ASI-led pre-audit.
b) Invoice Based Payments (payment of implementing partner based on invoice)
The partner develops their budget based on an agreed payment schedule/outputs based payments. Payments would
be made on production of invoices, typically dependent on receipt and verification of an agreed output. An initial
payment may be made on signature, and financial penalties may be applied for poor quality/delayed outputs. These
aspects, in addition to reporting requirements and procurement arrangements are likely to be contract specific
depending on the project and applicant, and would be specified in the contract. This type of contract may be relevant
for consultancies, research studies etc.
c) Direct Payment by ASI (of suppliers/services on behalf of the implementing partner)
This method would be relevant for government partners – ministries, local councils, state owned enterprises etc if the WASH Facility financed them directly. It may also be relevant for other types of organisations such as local NGOs on small, short projects etc. The partner develops their budget based on a detailed list of items to be purchased, and the remaining cash requirements. ASI would review the budget with the applicant and agree which items ASI would provide ‘in kind’ to the applicant (e.g. ASI purchases and provides the items to the partner- e.g equipment, stationary, fuel vouchers etc) and for any items not appropriate to provide in kind, the remaining items may be provided by small cash advances. For cash advanced to the partner, strong accountability would be required regarding signature of request and receipt of funds from senior management of the organisation, and all expenditure must be accounted for in documentation (bills, payment vouchers etc). Each individual cash advance must be liquidated to the satisfaction of ASI before subsequent advances may be made.
(i) Selection of Financing Mechanism to be used for the Project
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The type of method would be in part dependent on the type of organisation, the outcome of the due-diligence pre-audit that ASI would do on the applicant, and the type of project itself. ASI would define what mechanism would be done for the applications, and this would be stated in the contract. Some partners may have a contract with a mixture of mechanisms (e.g. advanced based payments, but some procurement may be done on the Implementing Partner’s behalf by ASI). These would be clearly specified in the contract. Normally there would only be one contract per project, and this would be with the ‘lead’ partner (e.g. if there are
multiple organisations in the project). Finances would be disbursed to this lead partner, who would then disburse to
the other partners in the project. The lead partner would be accountable to ASI for the project funding, and the
signatory on the contract. The type of financing would depend on ASI’s decision on how to finance the lead partner.
There may be other mechanisms defined for private sector applicants, including the requirement for 50% matching
funds. Details of these mechanisms will be available from the WASH Facility in due course.
(ii) Budget template and budget guidelines
Applicants are expected to develop their budget in the template attached (Budget Template for WASH Facility Applications.xls ). This has guidance notes on what costs are classified under ‘Project Costs, Direct Project Support Costs, Indirect Costs’. Only a summary of the budget is required in the concept note, but the full detailed budget (presenting the filled out excel spreadsheet template) is required in the proposal. Below is a few general points related to the budget:
Budgets will be presented in Pounds Sterling (£) or SLL. Grant envelopes range typically between £25,000 -
£200,000, although smaller or larger grants can be considered.
Budget ratios will be ideally no higher than 25% Direct Project Support costs, and a maximum of 7% indirect
costs
There may be maximum allowable amounts for allowances and governmental staff salaries to be charged to
the WASH Facility. Details of this will follow in due course.
Budgets will be broken down into estimated expenditure per financial quarter.
There will be a flexibility between budget chapters of 10%
1.2 Monitoring & Evaluations & Compliance of Projects
(iii) Monitoring by ASI on Partner Compliance & Fund Usage
ASI will expect adherence to minimal financial management and procurement procedures by the funded partner, to ensure funds are being accountably and properly used, and that sufficient processes are maintained for future audit purposes. These minimal procedures mainly apply for partners receiving advanced based payments/disbursements, or those making procurement directly (rather than ASI providing items in kind). For those partners, ASI would undertake the following monitoring systems on them to ensure compliance with the minimal procedures:
Due diligence checks before signature of the contract: ASI would require copies of the most recent audited
accounts, and the ASI officer would visit the applicant to undertake a pre-screening of their financial and
logistical/procurement procedures.
Visits of the ASI officer during the roll-out of the project funded by the WASH Facility to ensure compliance to
minimal standards regarding financial and logistical/ procurement aspects
Scrutiny of submission of reports and acquittals submitted by the partner for quarterly reporting to ASI
ASI may commission an external audit on the project at any time during the roll-out or at the end of the project
(external audit financed by ASI).
(iv) Partner Led M&E, Progress Reporting & Milestones
The partner would be responsible for M&E of its projects, and M&E should be included in the application budget. Applicants are allowed to include an external evaluation if desired in their budget. Partners would be expected to report on progress and include an element of self-evaluation of progress and impact in the quarterly reports to ASI. The proposal the application submits would require a full Logical Framework which would
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include key milestones. The milestones would be linked to the financial quarters to allow progress tracking and expenditure rate. If the partner wishes to undertake more advanced monitoring such as beneficiary accountability systems and review and feedback meetings with stakeholders, that would be welcome, and should be stated in the application.
(v) ASI Visits for Monitoring & Evaluations of Funded Projects
The WASH Facility team may request to visit the project to monitor and evaluate programme progress, verify reported activities/purchases, and provide technical support (advice) to the applicant implementing the project. ASI would produce brief monitoring reports and these would be shared with the Project Selection Group and the project partner on request. Depending on the complexity of the project, the WASH Facility Manager may choose to also bring other members of the ASI technical support team on monitoring visits, or even commission an external monitoring and evaluations visit to the project. The local and central authorities are also expected to be involved in monitoring and evaluating the projects.
Additional Documents Available on Request from the WASH Facility Office:
The following documents are available to applicants on request, but are not necessary for applicants to fill out concept notes. These documents are more relevant to applicants who pass the concept note stage and move to full proposal.
Project Proposal Template
Minimal standards on financial management and procurement by applicants
Examples of contracts with partners
Asset Register Template
Formats for quarterly reporting
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