Preamble
Zimbabwe became one of the pioneers of decentralised co-operation when the government decided to set aside funds for a pilot programme in the National Indicative Programme (NIP) of the 8^th European Development Fund.

Building on this political support, the European Commission (EC) supported a dialogue process between the government and the different "non-state actors" (NSAs) with a view to defining and agreeing upon a policy and institutional framework for a decentralised co-operation programme.

The consultation process ultimately led to the elaboration, approval and signature in June 1999 of a Financing Agreement for the Zimbabwe Decentralised Co-operation Programme (ZDCP), worth 6 million EURO. The programme commenced in 1999 and will be completed in August 2003. The overall aims of the ZDCP is " poverty alleviation through enhancement of self reliance of local communities".

Management of the ZDCP programme is through a hierarchy of institutional structures of Non-State Actors from the Ward to the National levels. These structures include Ward Programme Committees (WPCs), District Co-ordination Committees (DCCs), Regional Boards and a National Board of the Non-State Actors Forum (NSAF).

A Tripartite Steering Committee (TSC) consisting of three members of the National Board, and a single representative each from the Government of Zimbabwe’s Ministry of Finance and the European Commission (EC) Zimbabwe delegation is the highest governing body of the programme. The day to day running of the programme is the responsibility of a team of technical staff, the Technical Facilitation Unit (TFU). The TFU has staff at district, regional and national levels, and is headed by a National Co-ordinator.

The ZDCP has two funding windows namely the National Development Fund (NDF) to finance national and regional (read provincial) level activities, and the Local Development Fund (LDF) to finance district and ward level activities. The pilot phase of the ZDCP is scheduled to run in three wards in three rural districts, namely Binga, Chipinge and Mwenezi. It will also run in two urban districts which are Gweru and Karoi.

In order to achieve ZDCP’s objectives, policies have been formulated to guide the implementation of projects and processes under the LDF and NDF. The policy formulation process, while difficult and complicated was a participatory one involving a multitude of stakeholders such as community members in pilot wards and their representative committees, Regional NSAF structures, the NSAF National Board, Technical Facilitation Unit staff and the NSAF Co-ordination Centre.

This was done through workshops and meetings, which were facilitated largely by the TFU, at ward, district, regional and national levels. A draft policy containing baseline conditions as provided for within the governance documents of the ZDCP was developed by the TFU incorporating the results of the consultative process. The draft document was further reviewed and formally adopted by the NSAF National Policy Workshop held at the Cresta Oasis Hotel in Harare from 23^rd to 25^th July 2001.

These policies are referred to as the Content Funding Application and Targeting Policy (CFATP). They will be reviewed annually by the National Board of the NSAF to ensure that they are serving the programming function of ZDCP resources and that they remain relevant to the problems being addressed by the programme.

2.0 National Development Fund
The NDF is funded to the tune of 650,000 Euro. (Z$32.5 Million at 1 Euro = Z$50)

2.1 Purpose of the National Development Fund
The National Development Fund shall support and fund :

• Policy research and advocacy;
• Capacity building and training of NSAs at national and regional levels;

2.2 Eligibility Conditions

• Projects funded by ZDCP under the NDF shall support the attainment of the ZDCP’s overall objective of poverty alleviation.
• All NSAs and participating communities shall benefit from the funding under the NDF.

• Projects should promote capacity building of NSAs and participating communities.
• Projects should demonstrate that they are sustainable and have local ownership.
• Projects should be realistic and technically feasible within the available timeframe and resources.
• ZDCP shall not fund projects, which duplicate existing and or planned projects (which are funded).
• All committed project funds should have been disbursed by August 2003.
• All projects should comply with relevant sectoral policies and legislation such as EIA guidelines, Local Authorities by-laws and National Gender policy.
• All projects should be culturally and socially acceptable to the relevant stakeholders taking into account gender equity and environmental sustainability.
• All financial commitments for projects should be disbursed within one year with a possibility of a 3-month extension.

2.3 Thematic areas for the National Development Fund
ZDCP shall finance the following sectors or thematic areas:

2.3.1 Information Dissemination
Support provided through the Annual Work Programme, under this sector will focus on:

• Production, and distribution of ZDCP promotional materials such as T–shirts and calendars
• Production, translation and distribution of ZDCP newsletters, fact sheets, and brochures.
• Production translation and distribution of ZDCP Annual reports
• Production of any other publications relevant to decentralised co-operation
• Website development and maintenance
• Press cutting service
• Advocacy using the electronic media
• Subscriptions to relevant publications
• Non-State Actor Consultations

2.3.2 Policy Research, Advocacy and Networking
Support provided through the NSAs, under this sector will focus on:

• Policy research including case studies on issues affecting ZDCP pilot districts and Regions;
• Dissemination of policy research findings to target groups as part of policy advocacy;
• Initiate and support an internship programme and fellowships on policy research;
• Support dialogue with Zimbabwean Parliamentarians, Government departments and other relevant target groups e.g. SADC, COMESA and the African Union;
• Exchange tours at Regional, National and International levels;
• Development of stronger partnerships between NSAs especially those not represented in the NSAF structures; and
• Media advocacy.

2.3.3 Capacity Building & Training
Support provided through the NSAs, and AWPs under this sector will focus on:

• Training and capacity needs assessment of NSAs;
• Training and capacity building of NSAs;
• Institutional development of NSAs; and
• Monitoring and evaluation; and
• NSA consultations and meetings.

2.4 Funding Support limits
The range for the NDF shall be Z$100 000 to Z$15 million per project (2,000 to 300 000 Euro.) All regions shall have their annual regional allocations approved by the National Board. The NDF shall be allocated as follows:

2.5.1 Partnerships
Policy research, advocacy and capacity building projects under the NDF will be decentralised to capable Non State Actors through competitive bidding. In cases where NSAs are implementing projects, sub-grants will be awarded. ZDCP may consider providing support for administrative overheads up to a maximum of 10% of the grant allocation, depending on the level of own contribution. Memoranda of understanding or agreement will be entered into with partners and sub-grantees.

2.6 Decentralised Management (including Financial Management and Disbursements)
ZDCP values decentralised management of activities including financial management. Decentralised management comes with transparency and responsibility, which ensures stakeholders remain confident in the programme. Projects, which will be funded under NDF will be decentralised to NSAs through sub-grants, and to the district level on a phased basis. Programme management activities like planning, monitoring, information and advocacy, evaluation and implementation will be decentralised to lower structures.

All sub-grantees will report to the appropriate NSA board through the TFU and will operate on an Imprest system. All payments for the NDF will be made at National level. Disbursements will be made in tranches depending on successful completion of planned activities and transparent and good financial management. All sub-grants to NSAs should be subject to audit of that NSA or implementing agency. Alternatively sub-grantees will be asked to submit proof of actual expenditure. This section of the policy is however subsidiary to MOU requirements.

2.7 Gender Considerations
ZDCP should ensure that there is gender sensitivity in all activities and that men and women participate equally in programme planning, implementation and evaluation. All projects should, therefore be gender sensitive and should benefit both men and women. All community sub-groups especially women, must be involved throughout the project cycle and this should be indicated in the funding proposal and progress reports. In addition the proposal must have gender monitoring indicators. All projects and processes must include gender analysis training and awareness. Project management committees should be gender sensitive. The main beneficiaries of 60 % of the projects funded by the ZDCP should be women. The gender checklist presented in Section 3.10 below will be used during appraisal of projects.

2.8.1 Monitoring and Evaluation
ZDCP values self-reflection as part of programme management. All proposals should indicate how the project would be monitored and evaluated including the indicators, which will be used to assess performance. These should also include gender and environmental indicators where applicable.

2.9 Own Contribution
In-order to enhance ownership and commitment to projects funded by ZDCP, NSAs shall contribute at least 25% of the total project support or funding which should be indicated in the funding proposal. The contribution shall be in cash or in kind. Actual own contribution will have to be indicated in all progress reports.

2.10 Annual Work Programming
Most of ZDCP process will be financed through the Annual Work Programme. It is therefore important that these processes reflect the priorities and needs of NSAs at all levels and participating communities. All Annual Work Programmes should be ready by 1 October of the preceding year. NSAs should have provided their inputs as follows: Ward and District by June, Region by July and National by August. The TFU will be responsible for the technical processing of the AWP.

2.11 Project Approval Framework
All projects will go through the following approval procedures and channels:

3. Local Development Fund - Projects
The local development fund is funded to the tune of 2.1 Million Euro (Z$105 million) for Projects. (Current Exchange rate: 1 Euro = Z$50)

3.1 Purpose of the Local Development Fund - Projects
The Local Development Fund shall support and fund projects in the pilot wards and districts.

3.2 Eligibility Conditions

• Projects funded by ZDCP under the LDF shall support the attainment of ZDCP’s overall objective of poverty alleviation.
• Only Non State Actors and participating communities shall benefit from the funding under the LDF

• Projects should reflect community priorities agreed through consensus and should be relevant to the community needs and problems. A letter of support endorsed by at least 20 community members should be attached to the proposal. Each gender category should be represented by at least 40% of those endorsing the project proposal.
• Projects should promote capacity building of NSAs and participating communities.
• Projects should promote use of appropriate technology.
• Projects should demonstrate that they are sustainable and have local ownership.
• Projects should be realistic and technically feasible within the available timeframe and resources.
• ZDCP shall not fund projects, which duplicate existing and or planned projects (which are funded).
• All projects funded under the LDF should have a proposal as provided in format provided in this policy document.
• All income generating projects should have an economic and financial analysis as part of the financing proposal and making it compliant with the format provided in this policy document.
• All committed project funds should have been disbursed and used by the end of August 2003
• All projects should comply with relevant sectoral policies and legislation such as EIA guidelines, Local Authorities by-laws and National Gender policy.
• Support under LDF shall be provided to the pilot districts and wards only during the pilot phase of the programme. The programme will address both community and household poverty including spill over benefits to neighbouring wards.
• All projects should be culturally and socially acceptable to the participating community.
• All projects supported by the programme should be apolitical.
• All financial commitments for projects should be disbursed within one year with a possibility of a 3-month extension.
• All projects except for income generating projects will be funded through grants

3.3 Thematic areas for Local Development Fund
Pilot districts and participating communities will not be restricted to focus on one sector but can also have an integrated project. ZDCP shall finance the following sectors or thematic areas.

3.3.1 Health
Support provided under this sector will focus on:

• Upgrading of existing clinics and hospitals;
• Construction of new clinics (including staff housing) and supportive infrastructure such as fencing and electrification;
• Improved housing conditions mainly in urban areas;
• Promoting water and sanitation;
• Health education;
• Preventative health care; and
• Aids prevention and home based care including Aids orphans care

• Necessary and appropriate letters of support from relevant ministries
• For new clinics, the catchment area must be at least 10 kms
• Building plans and technical designs should be attached
• The site should have access to a water source and a road network
• EIA compliance where necessary

3.3.2 Economic Empowerment
Support provided under this sector will focus on:

• Promotion of informal sector activities especially in manufacturing and value adding enterprises including entrepreneurial training
• Support to rural traders in provision of agricultural inputs including entrepreneurial training
• Provision of micro-finance for income generating activities through establishment of Revolving Loan Funds
• Promoting integration of informal sector into main stream economy including provision of appropriate business information
• Promoting linkages between micro-enterprises and large scale companies
• Supporting institutions which provide access to agricultural inputs, markets and micro-finance

• Business proposals for income generating projects including financial and economic appraisals using measures such as IRR, NPV and pay back periods.
• Income generating projects must be targeted at groups (including women)within the community.
• Micro-finance will be provided at a concessional interest rate of 15 % per annum (subject to review) and must be repaid within one and half years. Where appropriate these will be accessed through existing Micro Finance Institutions (MFI).

3.3.3 Education
Support provided under this sector will focus on

• Promotion of pre-school education;
• Promotion of vocational training and practical skills development;
• Provision of learning, teaching aids and materials;
• Provision of furniture;
• Promotion of technical subjects including provision of specialised equipment;
• Promotion of civic education; and
• Upgrading and construction of new classroom blocks, teachers’ housing, toilets and water supplies.

Requirements and Conditions
Necessary and appropriate letters of support from relevant ministries

• For new schools – evidence of minimum required number of pupils
• Building plans and technical designs should be attached
• EIA compliance where relevant

3.3.4 Food Security
Support provided under this sector will focus on

• Promotion of appropriate farming technologies and techniques;
• Water development including promotion of sustainable irrigation technologies;
• Livestock re-stocking and development including animal husbandry;
• Promotion of appropriate crop varieties including crop husbandry;
• Promotion of horticultural production;
• Promoting of community based natural resource management including training and awareness;
• Provision of marketing support and information; and
• Provision of agricultural inputs

• EIA compliance where relevant
• Technically and economically feasible
• Appropriate letters of support should be attached

• Building plans and technical designs should be attached

• All projects should be linked to local authority, and government policies and should be indicated in the proposal.
• Necessary letters of support and approval should be attached to the financing proposal
• The projects should observe local authorities’ by-laws.

3.5 Funding Support limits
Total financial support for any single project funded under the LDF shall range from a minimum of Z$100,000 (Euro 2,000) to a maximum of Z$15,000,000 (Euro 300,000).

3.6 Partnerships
It is not envisaged that implementing agencies will be used for LDF funded projects except for specialised projects like Micro –lending, during the balance of the pilot phase hence the TFU will facilitate their implementation in liaison with local NSAs. In-order to promote complimentarity, in LDF funded projects, partnerships (including co-financing) with NSAs, private sector and government departments is encouraged. Memorandum of understanding or agreement will be entered into with partners.

3.6.1 Decentralised Management (Including Financial Management and Disbursements)
ZDCP values decentralised management of activities including financial management. Decentralised management comes with transparency and responsibility, which ensures stakeholders remain confident in the programme. Programme management activities like planning, monitoring, information and advocacy, evaluation and implementation are being decentralised to lower structures.

The Regional TFU office will make all payments for LDF. In case of supplies, payments will be made direct to the supplier following competitive bidding. Disbursements will be made in tranches depending on successful completion of planned activities. This section of the policy is however subsidiary to MOU requirements.

3.6.2 Non Eligible Projects
ZDCP will not support the following projects:

• Projects which support any political party
• Road construction
• Cash or cheque donations to individuals or cheer funds
• Construction of churches or beerhalls
• Grants for income generating projects
• Sewer and water reticulation in urban areas

3.6.3 Environmental Issues
ZDCP recognizes the integral role played by the environment in sustainable development. Projects supported by the programme should have minimal impact on the environment and environmental monitoring indicators to assess the impact on the environment shall be included in funding proposals. All project proposals shall have environmental awareness and training components. The Government Environmental Impact Assessment Policy will apply to all projects funded by the programme especially as they relate to prescribed activities. Examples include:

• Irrigation schemes
• Housing development
• Conversion of forest land and natural woodland to other use
• Agro-industries
• High voltage transmission lines
• Mining and quarrying
• Waste treatment and disposal
• Tanneries
• Water supply ( mainly for industrial, agricultural and urban water supply)

• Social
• Cultural
• Feasibility and acceptability
• Viability
• Institutional arrangements and development of project in the community
• Access to infrastructure, markets and service institutions
• Development processes
• Ownership issues:

• of resources, assets, benefits and implications on individuals and groups
• of the project

• Environmental issues:

• soil erosion, flooding, drought, land degradation, deforestation, salinisation, destruction and drying up of wetlands, siltation of dams and rivers, depletion of biodiversity, depletion of wild animal species,
• emission of pollutants such as chemicals, gases, waste, noise, sediments
• causing water and air pollution, diseases and pests

• Economic

• macro-economics
• micro-economics

• Financial

• project
• household/beneficiary level

• Human resources, labour, skills development

3.7 Gender Considerations
ZDCP should ensure that there is gender sensitivity in all activities and that men and women participate equally in programme planning, implementation and evaluation. All projects should therefore be gender sensitive and should benefit both men and women. All community sub–groups especially women, must be involved throughout the project cycle and this should be indicated in the funding proposal and progress reports. In addition the proposal must have gender monitoring indicators. All projects and processes must include gender analysis training and awareness. Project management committees should be gender sensitive. 60 % of the projects funded by the programme should have women as the main beneficiaries. The following gender checklist will be used during appraisal of projects.

Gender Checklist
What will be the long-term effects of women and men increased ability to take charge of their own lives and to take collective action to solve problems?

• How will the project affect levels of responsibility for both men and women’s position or opportunities in the project?
• Will the project improve the perception of women and men as sound decision-makers, resource managers, leaders, competent professionals, and community members?
• What will be the impact of the project on different gender groups (men and women) in terms of enhancing their:

• Access to resources;
• Ability to make decisions;
• Participation in the project; and
• Capacity enhancement.

• Both gender groups must be facilitated to express their needs, priorities and objectives
• Social, legal and cultural obstacles must be articulated as well as ways of addressing them in the project
• There should be gender training for staff involved in project implementation
• Gender aggregated data should be collected and analyzed
• The position of both men and women must be clearly articulated in terms of:

• customary practices;
• household responsibilities and roles;
• literacy levels;
• access to services resources; and
• representation and participation in the project.

3.8  Feasibility Studies
All detailed technical feasibility studies (including EIA) will be funded as part of the project proposal. However the actual project will only be implemented if the feasibility studies are positive. Projects with completed feasibility studies will be given priority. Use of local expertise within NSAs and Government departments to carry out feasibility studies is encouraged.

3.9 Monitoring and Evaluation
ZDCP values self-reflection as part of programme management. All proposals should indicate how the project will be monitored and evaluated including the indicators, which will be used to assess performance. These should also include gender and environmental indicators.

3.10 Own Contribution
In-order to enhance ownership and commitment to projects funded by ZDCP, NSAs, participating communities and households shall contribute at least 25% of the total project support or funding which should be indicated in the funding proposal. The contribution shall be in cash or in kind. Actual own contribution will have to be indicated in all progress reports.

3.11 Annual Work Programming
Most of ZDCP process will be financed through the Annual Work Programme. It is therefore important that these processes reflect the priorities and needs of NSAs at all levels and participating communities. All Annual Work Programmes should be ready by 1 October of the preceding year. NSAs should have provided their inputs as follows: Ward and District by June, Region by July and National by August. The TFU will be responsible for the technical processing of the AWP.

3.12 Emergency Relief
If a pilot ward is hit by a natural disaster such as floods and drought, ZDCP will mobilise resources under the LDF projects’ budget to support disaster mitigation measures such as food relief and procurement of basic household utilities. Partnership agreements with institutions with comparative advantage in providing such assistance may be entered into.

3.13. Project Approval Framework for LDF
All projects shall follow the following approval procedure and channels:

The timeframe from the submission of project documents to the DCC to the approval by the National Board should not exceed three calendar months.

4. Local Development Fund - Processes
The local development fund - processes is funded to the tune of 900,000 Euro (Z$45 Million) (Exchange rate: 1 Euro = Z$50)

4.1 Purpose of the Local Development Fund - Processes
The Local Development Fund shall support and fund activities aimed at ensuring that projects and process are running concurrently in the pilot districts.

4.2 Eligibility conditions
Activities funded by ZDCP under the LDF shall support the attainment of ZDCP’s overall objective of poverty alleviation.

• NSAs and participating communities shall benefit from the funding under the LDF provided that all requests are done through a cluster representative.

• Activities should reflect community priorities agreed through consensus and should be relevant to the community needs and problems. A letter of support endorsed by at least 20 community leaders should be attached to the proposal.
• Activities should promote capacity building of all NSAs and participating communities
• Activities should promote use of local expertise.
• ZDCP shall not fund processes, which complement existing and or planned activities.
• All requests for funding under the LDF should have a proposal, project plan, logframe with indicators, indicative workplan, and financing plan as per the approved format.
• All activities should be culturally and socially acceptable to the participating community.
• All activities supported by the programme should be apolitical

4.3 Eligible Activities
Support provided through Annual Work Programmes will focus on:

• Capacity building of NSAs and participating communities;
• Monitoring and Evaluation;
• Exchange tours;
• Advocacy and information dissemination;
• Production of promotional materials like T-shirts and calendars;
• Production of reports and publications;
• Student attachment programme to enhance their practical skills;
• NSA consultation processes; and

4.4 Linkage to Local Plans and Government Policy
All activities should be linked to local authority by-laws and government policies.

• Necessary letters of support and approval should be attached to the financing proposal.

4.5 Funding Support limits
Total financial support for any single project funded under the LDF- processes shall range from a minimum of Z$5,000 (100 Euro) to a maximum of Z$200,000. (4,000 Euro)

4.6.1 Decentralised Management
ZDCP values decentralised management of activities including financial management. Decentralised management also comes with transparency and responsibility, which ensures stakeholders remain confident in the programme. Programme management activities like planning, monitoring, information and advocacy; evaluation and implementation are being decentralised to lower structures. Support will be given through annual work programmes.

4.7 Gender Considerations
ZDCP should ensure that there is gender sensitivity in all activities and that men and women participate equally in programme planning, implementation and evaluation. All activities should therefore be gender sensitive and should benefit both men and women. All processes must include gender analysis training and awareness.

4.8 Monitoring and Evaluation
ZDCP values self-reflection as part of programme management. All proposals should indicate how the activity would be monitored and evaluated including the indicators, which will be used to assess performance. These should also include gender indicators.

4.9 Own Contribution
In-order to enhance ownership and commitment to projects funded by ZDCP, NSAs, participating institutions shall contribute at least 25% of the total project support or funding which should be indicated in the funding proposal. The contribution shall be in cash or in kind. Actual contribution will have to be indicated in all progress reports.

4.10 Annual Work Programming
Most of ZDCP process will be financed through the Annual Work Programme. It is therefore important that these processes reflect the priorities and needs of NSAs at all levels and participating communities. All Annual Work Programmes should be ready by 1 October of the preceding year. NSAs should have provided their inputs as follows: Ward and District by June, Region by July and National by August. The TFU will be responsible for the technical processing of the AWP.

ANNEX 1

All proposals shall have the following format. (Refer to PCM manual)