Chapter 7.
The Concept Paper

7.1 Introduction and Application

There is a logical progression from the Country/Regional Programming Framework (C/RPF) (see Chapter 6) through the project identification and project selection processes to the Concept Paper in terms of both the knowledge gained on the proposed project and the documentation produced.

A Concept Paper is required for all bilateral projects, including LOB 8 projects (see section 4.4.8), except in the following three instances:

• the project value is $500,000 or less;
• the project is the next phase of an earlier project and its development has already been discussed with the Recipient Country and the Vice-President (VP).  However, if planning funds are required, a brief concept paper is recommended;
• LOB 3 - Quick Transfer Model (see section 4.4.3)- In which case the Project Manager (PM) must ensure linkages with the strategic program objectives within the C/RPF;

Note on the Bilateral Responsive Mechanism:
When a Concept Paper is required, it is based on the information available from the Proponent's Preliminary Proposal. Both the approval of the Concept Paper by the VP and the Minister's agreement to enter into discussions with the Project Proponent (leading to a Contribution Agreement) must be obtained before the Proponent is asked to submit a Detailed Proposal (see section 4.4.8).

As indicated in Chapter 6, during project identification and selection, the Program Director (PD) and PM confirm or negotiate the composition of the project team (including appropriate in-house scientific and technical specialists) and any other resources required to develop the Concept Paper (which should be minimal as significant resources should not be committed, or expectations raised, until the Concept Paper has been approved).

The preparation of a Concept Paper is time sensitive and is normally based on the screening process described in Chapter 6. In addition, the possible project will already have been discussed with the recipient government (and, as appropriate, other recipient country stakeholders) to obtain a clear understanding of project requirements and the priority which the recipient government places upon the proposed project.

7.2 Purpose of the Concept Paper

The Concept Paper is a proposal by the Program Desk to plan (appraise and design) a specific project which will contribute to achieving one or more of the program level expected results that have been identified in the C/RPF.

The Concept Paper provides a brief summary of basic project information (resulting from appropriate screening during the project identification and project selection stages) to allow a decision in principle by the VP and the approval of funds to assist in planning (appraisal, feasibility and design) the proposed project to the project approval stage.

The Concept Paper:

• indicates the specific link with the C/RPF (see Chapter 6) which, in turn, ties the project into the Official Development Assistance (ODA) program priority(ies) and the overall ODA Policy Framework (see section 2.2). If no approved or current C/RPF exists, the Concept Paper would have to make the link between the project and the ODA priority(ies) and overall Policy Framework;
• proposes a project concept based on preliminary screening, discusses possible options or alternatives, and provides a justification for the preferred project concept in relation to other concepts reviewed (linking the choice to lessons learned, as appropriate);
• provides an early indication of any major risks anticipated;
• indicates the proposed Line of Business (LOB) (see section 4.3 and section 4.4 and the document entitled Lines of Business); and
• indicates the anticipated selection process (i.e., competitive or sole-source).

7.2.1 Approval of Planning Funds

The Concept Paper indicates the expected project planning costs; approval of the Concept Paper is the authority to encumber funds for the planning of a bilateral project.

There are three important considerations in establishing the extent and expected cost of the analyses. The first is the scope and complexity of the proposed project. The second (closely tied to the first) is the expected project cost as there should be a reasonable relationship between the cost of appraisal and the expected cost of the project. The third is the amount of information already available to the project team (including the work already carried out by other donors) relevant to appraise, assess the feasibility of, and design the proposed project.

For costing and appraisal management purposes, the project team should take into consideration the extent to which work can be done "in-house" or which must be contracted out.

The benefits of detailed appraisal activities may also be considered so that there is a supporting rationale for the expected level and depth of each analysis undertaken (and for any decision not to undertake one or more of the analyses).

7.2.2 Funds for Validating Bilateral Responsive Mechanism Projects (LOB 8)

CIDA does not request planning funds to develop unsolicited proposals as that is the responsibility of the proponent. However, on larger proposals, a limited amount funding may be required to validate the appraisal, feasibility, and design information submitted by the proponent as part of the unsolicited proposal (see section 8.5).

7.3 Content of the Concept Paper

The Concept Paper should not exceed two pages. A Concept Paper cover sheet generated by the Agency Information System (AIS) is required.

The Concept Paper shall include the following information in the order in which it appears below:

1. project description (anticipated Project Goal, Purpose, Outcome(s) and Outputs, if known, recipient/target group, expected duration and approximate cost);
2. link with the Country/Regional Programming Framework (Project Goal) (see Chapter 6) or link with ODA program priorities (see section 2.2) and/or branch programming framework if no approved C/RPF is in place;
3. links with national development strategies and plans;
4. lessons learned;
5. partnership strategy: How the recipient partners will be involved in project planning and implementation to achieve ownership and sustainability;
6. expected benefits to Canada and the recipient country;
7. an early indication of potential risks requiring further investigation;
8. proposed Line of Business (see section 4.3, section 4.4 and the document entitled Lines of Business); and
9. A Contracting Annex indicating the proposed selection and contracting approach for the EA.

Notes about a Non-competitive Selection:
§If a non-competitive selection is being proposed by the project team and sufficient information on selection exists at the time of the Concept Paper, a Selection Approval Memo to the Minister should be prepared at the same time as the Concept Paper and submitted to the VP as the above mentioned Contracting Annex.
§If sufficient information on selection does not exist at the time of the Concept Paper, the above Contracting Annex will provide preliminary reasons for the proposed course of action, the nature of information that is currently lacking about the proposed selection, and when the Selection Approval Memo to the Minister will be ready. If the VP approves the Concept Paper, the VP will either request that a competitive selection process be followed, agree to the timing of a subsequent selection memo or send the Selection Approval Memo to the Minister requesting approval of the non-competitve selection.
§ In either case, it is very important that members of the project team, in discussing the project concepts with the desired implementing organization, clearly avoid making any commitments on the part of the Crown with respect to the proposed project until after the Selection Memo has been approved by the Minister.

The Concept Paper stage also provides an opportunity for the project team to begin development of an preliminary version of the Logical Framework Analysis (LFA) (see Chapter 5) dealing with the proposed logic of the project including the expected results, link with the C/RPF and risks (items a, b and f above). This initial draft facilitates project team discussions, but is not part of the Concept Paper sent to the VP. It should be kept on file to support the Concept Paper and to be used during the ensuing planning phase of the project.

For essential details regarding CIDA's legal obligations under the Canadian Environmental Assessment Act (CEAA) which are relevant to the Concept Paper, refer to CEAA and the Roadmap.

7.4 Approval of the Concept Paper

All Concept Papers are approved by the Vice-President.

When a Concept Paper is submitted to the VP for approval, it should be accompanied by a Concept Paper cover sheet (generated by the AIS) signed by the Program Director.

Signature of the cover sheet by the Vice-President will signify:

• approval of the Concept Paper; and
• (if required) approval of specified funds for planning purposes.

The required information is then entered into the AIS as a project in the planning stage with the required program priority and sector coding information.

The PM informs the recipient government, through the Head of Aid (HOA), of decisions made regarding the Concept Paper.

7.5 Mobilizing Planning Resources

Outside resources may be required for project appraisal, feasibility and design activities. The PM should consult the contracting officer on the project team for assistance with the contracting process. Timelines will depend on the contracting approach selected based on the size, nature and complexity of the assignment. For a better understanding of the requirements of the contracting process, refer to the Contracting Guide for Managers.

CIDA has a General Agreement on Development Cooperation (see section 11.2) with most developing countries which will cover any planning activities.  If there is no General Agreement on Development Cooperation, an exchange of letters with the Recipient Country will be required.

Note on Contracting:
Government policy does not permit contract splitting to circumvent established contracting guidelines, including delegated selection authorities.

Note on the Utilization of International Organizations:
If an international or regional organization is to be used as an Executing Agency (EA) to implement a projectunder LOBs 1 to 7 (see section 4.3 and section 4.4), the organization must be selected by the Minister before substantive discussions take place (similar to non-competitive selections in the Notes in section 7.3 above). However, if the Regional Organization is the "Recipient" of the project (through a Memorandum of Understanding [MOU]), this is not considered a selection matter and the project would proceed from the Concept Paper stage to project appraisal.

7.6 Project Pipeline

Once the Concept Paper is approved, the relevant information should be published on CIDA's "Pipeline" available on CIDA's Internet site. Requests for Proposal will not be published on the electronic bidding system unless the project information has been available on the Pipeline for a minimum of 30 days.

CIDA publishes ALL projects at the "planning" stage (i.e. projects which have the Concept Paper approved but not yet the Project Approval Document (PAD) (see Chapter 10)). The only exception is the Canada Fund for Local Initiatives.

Projects that are implemented on a directed or sole source basis will be published ONLY WHEN the selection of the organization/firm has been made at the appropriate level. In the case of a contract, this will normally be after the posting, without challenge, of an Advance Contract Award Notice (ACAN).

Projects resulting from CIDA's Bilateral Responsive Mechanism (unsolicited proposals) (see section 4.4.8) will be published ONLY WHEN they are accepted by CIDA further to the review of the preliminary proposal submitted by the proponent.

Some projects may move from "tentative" to "operational" stage without a Concept Paper. In those instances, the projects should be published even though they will be at the "operational" stage when they are posted on the "Pipeline".

See Guidelines for Publication of the Projects at the Planning Stage "Pipeline" for detailed requirements.

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