Component 1 of the project has an open concept. The list of the sub-projects will be defined based on individual requests submitted by the local communities (LC) following a participatory approach and based on their annual investment plans (AIP). In order to be able to access the financing, the municipalities have to meet preconditions and financing terms which are detailed in the “Guide FINCom”. Up to a ceiling of 700,000 EUR, the sub-projects are financed across a disposition fund. The approved individual projects will be implemented by the LC acting as employer. CPSCL (Loan and Support Fund for the Local Communities) across its regional offices will support the LC in the implementation of the sub-projects.
The expected deliverable of component 1 is as follows :
The new municipalities have rehabilitated or newly constructed functional infrastructure at their disposal including equipment supplied and in operation.
For component 1 the envisaged activities encompass :
- Construction and rehabilitation of municipal infrastructure;
- Supply of equipment.
FICOL programme component 1 will finance the following investment measures :
- Construction and rehabilitation of buildings (e.g. city council, municipal depot, rehabilitation of municipal buildings, markets, commercial premises etc.);
- Construction and rehabilitation of municipal infrastructure such as roads and various networks (e.g. roads and pavements, public lighting, storm water drainage, city beautification etc.);
- Procurement of materials and equipment (e.g. road and cleaning equipment, computer equipment);
- Economic projects (e. g. markets, parking);
- Services of an internationally experienced consultant to assist the project implementation, especially the realisation of the investments (IMC).
CPSCL supported by IMC will help the municipalities in establishing their AIP and the request. The LC may refer to design and monitoring offices (prime contractor) to assist them in the preparation and implementation of the projects. In this case these firms support the LC in the elaboration of feasibility studies, designs, tenders, supervision and monitoring of the construction sites and the works and supply contracts. If need is, they can also act as delegated project owners (steering offices). The LC can also make use of steering offices acting as delegated project owners for works above a contract value of EUR 350,000. Works and supply firms are contracted by the LC for the infrastructure construction, equipment supply and installation under individual contracts. The AMC will support the CPSCL in the management of the disposition fund including the regular submission of financial information to KfW.
Projects with high environmental risk and projects of a religious nature are excluded from being financed across this project. These latter count among category A investments as defined in the CPSCL’s “Environmental and Social Evaluation Guide of the Local Communities” (e.g. new landfills and solid waste transfer stations, slaughterhouses, investments that would enforce the relocation of private households or industrial activities). In light of the urgent needs of the municipalities, it was agreed to start with basic investments for each project municipality, especially administrative buildings, municipal parks as well as rolling and IT equipment.