volume 8 foreign aided project management manual contents

Roads and Highways Department
Volume 8 – Foreign Aided Project Management Manual
Section 3 – PCU and PIU Organisational Structure
informed planning of future works, informed quality and financial monitoring, improved
coordination and flexibility of reporting from different RHD systems.
For effective function of the CMS, it is essential that all current projects data be entered into the
system. This includes the backlog projects: those that have not yet been completed and those
that have not been paid for.
There should be provisions for entering data in the CMS on contracts for consultants and
producing reports accordingly and as requested.
3.3.2 Accounting Arrangements
Generally the PD PIU shall maintain a foreign currency account for disbursement of forex for
individual projects. The PD PIU has 100% financial authority for his project within approved
budget limits up to the Engineer’s Estimate, as in the Annual Development Programme (ADP).
He has the overall authority and responsibility for disbursement function for the foreign aided
portion of loans and grants. This single ADP account is established through the ERD.
In case of projects (like flood rehabilitation and feeder roads projects) operating in more than
one zone the individual PDs shall report to the PD PCU, who will carry out reimbursement
activities on the approved invoices and act as a single point of coordination with the relevant
development partners.
This includes approval of invoices and reimbursement from the funding agency’s account for
interim payment certificates (spending on the ‘office account’) against the foreign-aided portion
of the loan or grant, up to the value of the engineer’s estimate. The PD has an accounts officer
(and support staff) to carry out this disbursement function.
GoB financial approval is through the RHD counterparts who work alongside the consultant in
the PIU and approves measurement of the works.
Should the FAP require an increase in funding then the application is to be made to the PD PCU
for the CE’s approval, prior to passing for GoB and donor agreement. This gives the PD PCU
the opportunity to decide the most appropriate loan for certain additional works and the time to
approach the relevant development partner for a new loan or time extension.
Where there are currency fluctuations the PIU will manage any changes to the amount of money
available to the project with liaison with the funding agency through the PD PCU.
Issue 1 April 2005 Page 3. 6