Chapter 12.
Managing Operational Projects

12.1 Introduction

Managing the implementation of projects is one of the most important and time-consuming activities for the Project Manager (PM) and project team members. Good project design, selecting a competent Executing Agency (EA) or Implementing Organization (IO) (both will be referred to hereafter as "EA"), and the collaboration of the recipient country and other project stakeholders will set the stage for the achievement of the expected project results.

However, the extent to which those results are achieved will be determined during project implementation, based largely on continuing cooperation among the project parties, the skills and competency of the EA, appropriate project monitoring and guidance, making timely and appropriate adjustments to the project, and whether or not the logic of the project and critical assumptions were correct.

In general terms, CIDA projects are managed within the defined CIDA Regulatory Environment and key Agency and bilateral programming and operational frameworks (or mechanisms) described in Chapter 3, Chapter 4 and Chapter 5.

For project management purposes, each project is normally implemented within the context of a series of documents which flow from one to the other, serving different purposes, while utilizing the same core project information. These documents include:

• the agreed-upon project design (section 9.5);
• the CIDA Project Management Strategy (section 9.7) which includes, inter alia, the Project Performance Measurement Framework (section 9.8);
• the Contracting Plan, as an Annex to the CIDA Project Management Strategy (section 9.9);
• the Project Approval Document (PAD) including the approved budget, timeframe and Logical Framework Analysis (LFA) (Chapter 10);
• the Memorandum of Understanding (MOU) (section 11.3);
• the contract or contribution agreement (section 11.4); and
• following the fielding of the EA's staff, the Executing Agency Project Implementation Plan (see section 12.3).

Note:
Depending upon the results of the environmental assessment, an Environmental Management Plan (EMP) (or other actions) may also be required as described in the documents: Guidelines on Environmental Management Plan, available from Policy Branch and the The CEAA and the Roadmap.

This chapter provides an overview of project management tools available to the PM; discusses project performance monitoring and measurement; and discusses changes to operational projects.

12.2 Project Management Tools

Projects are the primary instrument used by the geographic programs to deliver upon their programming objectives and expected results. As such, the sound management of these projects, in order to facilitate the achievement of the anticipated results, is a key responsibility and accountability of all PMs and Project Team members.

To manage a project (and its EA), CIDA relies on several common project management tools, all within the framework of the Results-Based Management in CIDA - Policy Statement. Several of these tools have been initially discussed as project design tools in section 9.4. These include: the Logical Framework Analysis (LFA, Chapter 5); the Work Breakdown Structure (WBS); the project budget and the project schedule. In addition, project progress reporting has been discussed in section 9.8.4, and contracts and contribution agreements in section 11.4 , the Contracting Guide for Managers in CIDAand the Manager's Guide to Contribution Agreements.

The EA Project Implementation Plan (PIP) (see section 12.3) is the tool through which the EA updates and details the information provided by the Work Breakdown Structure, the LFA, the project budget and the project schedule, as it describes how it will carry out its Statement of Services and implement the project. The PIP is approved by CIDA and the recipient government (often through a Project Management or Steering Committee). The PIP is updated annually, normally as an Annual Workplan.

While the PIP deals with the total project, the Annual Workplan focuses attention on specific project activities to be undertaken during the year to achieve specific results or to further progress towards the achievement of results with specified resources. The Annual Workplan should have an updated LFA, an detailed annual budget (with summary information for prior and future years), a detailed schedule for the year (with summary information for prior and future years), an discussion of any risks that are particularly relevant to the coming year, other management issues, etc.

Administrative Bulletin #99-8 entitled, Change Requests to Workplans and Milestone Meetings and Contract Amendments, states that Annual Workplans:

 
"should be used, as much as possible, as the primary vehicle for obtaining global approval of detailed annual operating budgets, level of effort for work to be performed, and specific activities and results to be accomplished in the given period (value, scope, timing), and the acceptable range of variance for those elements."


Like the PIP, the Annual Workplan is approved by CIDA and the recipient government normally through a Project Management or Steering Committee. However, given the importance of the Annual Workplan in the management of the project, formal approval of the workplan should be provided either in the form of an exchange of letters or by having all parties sign the workplan.

Once the project becomes operational, in accordance with the PIP, regular Progress and Financial Reporting (section 9.8.4) including an Annual Report becomes the key tool for the CIDA PM, project team and recipient country to assess project progress towards the anticipated results. The contents, frequency, timing and distribution of progress reports must be specified in the contract or contribution agreement signed with the EA. The format of the progress and financial reporting should be in line with the outcomes and/or outputs of the project as specified in the PAD, contract or contribution agreement, and the approved PIP. As mentioned in section 9.8.4, in addition to the reporting from the EA, the CIDA PM may also obtain information on the project's progress towards achieving its planned results from: a project or sector monitor (Canadian, local or part of a Program Support Unit [PSU]); other members of the project team; the CIDA field representative assigned to the project; the recipient government or organization; project committee meetings; other donors; and his/her own field visits.

The financial reporting received from the EA is critical to the PM understanding the project's use of its financial resources in relation to the progress towards results. More information on financial management is contained in the Guidelines on Financial Aspects of Project Management. Knowledge of the project's financial status, its use of resources and the cost of activities helps the PM and other project team members to assess the cost options of various adjustments to the project's plans that may be required in order to ensure that the expected results are achieved.

Receipt and approval of the appropriate financial and progress reports are necessary conditions to release payments (or advances) against the invoices submitted by the EA.

12.3 The Project Implementation Plan (PIP)

CIDA uses several common project management tools (within the framework of the Results-Based Management in CIDA - Policy Statement) to design and manage projects. On bilateral projects, the EA is required to use these same management tools.

The first involvement of the EA in the use of these tools would normally be when the EA presented the successful proposal on the project. Following the signing of the contract, the EA is required to prepare the Project Implementation Plan (PIP, which replaces the Inception Report) to describe how the EA intends to implement the project on behalf of CIDA and the recipient country and how the scope of work (Statement of Services) presented and agreed to in the contract or contribution agreement will be effectively carried out.

For LOBs 1, 2, 3, 4, 6 and 7 (see section 4.4 and Lines of Business), the PIP evolves from CIDA's original project design, the EA's proposal, and the EA's contractual Statement of Services. Parts of the PIP could also be derived from the CIDA Project Management Strategy and/or the MOU. The preparation and the approval of the PIP confirm that all involved parties are in agreement with respect to project design, management and operational details, responsibilities, project schedules and finances, based upon the up-to-date reality found in the field upon project start-up.

The PIP is normally prepared within 30 to 60 days of the arrival in the field of the EA's implementation team, unless the project is particularly large and/or complex. The PIP is prepared in consultation with the recipient country partner(s).

For the design and deliver (design/implement) option of LOB 5 (see section 4.4.5), the PIP is normally the product of the design phase leading to project approval and the MOU.

The PIP is approved by CIDA and (normally) the Project Management or Steering Committee and becomes the base document to be used by the EA in implementing the project. It is amended periodically, usually through Annual Workplans.

12.3.1 Preparation and Contents of the Project Implementation Plan

The following information is provided as the minimum requirements for a Project Implementation Plan. The level of detail will vary depending on the size, complexity and potential risks of the project. Contents of a PIP would include:

Section #1 - Project Background and Description

This section provides the context for the details which follow in other sections. In narrative form, it gives the project background and description taken from the contract or contribution agreement or as otherwise provided by CIDA (for instance, from the PAD). The project goal, purpose and expected results (outputs, outcomes and impact) are based on the latest approved version of the results-oriented LFA. Any suggested changes are highlighted in the narrative description and included in a proposed LFA which is attached as an annex.

Note:
Proposed changes to the project purpose or outcomes (change in scope, including a decrease in activities/outputs/outcomes with the same budget) or significant increases to the resources/funding required (cost increase) will be governed by section 12.6 below.

The PIP should also comment on, or update, the Project Performance Measurement Framework paying particular attention to the proposed indicators, assumptions and anticipated risks. In the case of risks, the EA should update and/or elaborate on original risks identified in the project design and identify any new risks anticipated as the project is about to start. The EA should also refine and update the stated probability and impact of project risks. (Risk indicators may be recommended for large or complex projects.)

In general, this section reaffirms, reinforces and expands on what has already been presented and approved in other project documents or provides the opportunity for the EA to describe and take into account any developments that might have taken place in the recipient country since the project was originally designed.

The section should also describe and demonstrate:

• how CIDA's program priorities and cross-cutting themes (especially gender equality and the environment) have been integrated into project implementation; and
• what mechanisms will be put in place to ensure the full participation of all project stakeholders, especially project beneficiaries, and how this and other activities will lead to the sustainability of outcomes from the project.

 
Section #2 - Project Output and Activity Matrix

Based on the WBS, this section provides, in chart form:

• a detailed description of each output indicated in the LFA (grouped by outcome) including what activities are required, what resources (inputs/level of effort) will be needed to achieve the output and who is responsible for the activity;
• EA management and administration activities should also be described.

Project Output and Activity Matrix

Depending on the type and size of the project, the description of individual activities might best be given in an annex.

Notes:
§ The initial Project Output and Activity Matrix leads to the EA's first Annual Workplan.
§ Although it is important to initially review the EA's Project Output and Activity Matrix, CIDA does not manage the EA at the activity level. Further Project Output and Activity Matrices submitted with progress reports could be at the output level.
Section #3 - Project Organization and Management Structure

This section provides a project organization chart showing lines of authority and lines of communication between major project parties, project committees and the EA.

Section #4 - Project Committees

This section will describe all committees involved in project management, including those to which the EA will provide secretariat services (such as the Project Steering Committee) and those at the working level, if appropriate, which the EA may chair. The make-up of these committees (including chairmanship) and a proposed schedule (or frequency) for meetings will be provided.

Section #5 - Project Budget and Financial Management Issues

The EA will provide/confirm project budget estimates based on the Output and Activity Matrix, in an input-output matrix format that provides cost breakdowns on both an input basis (salaries/fees, travel/accommodation, equipment, etc.) and an activity/output basis. Cash-flow estimates based on the total budget estimates will be provided on a quarterly or semi-annual basis for the first year of operation, and by project year or fiscal year (as decided by CIDA) for the remaining project period.

Note:
Although it is important to confirm that the EA has a properly costed budget, CIDA does not manage the EA at the input level.

The EA will advise of any potential financial management issues which require CIDA and/or recipient country attention/action.

Section #6 - Project Schedule

This section provides a bar or Gannt chart showing a starting time and approximate duration for each project activity and output. If appropriate, other major project milestones will also be shown.

Note:
Although it is important to initially review the EA's total project schedule, CIDA does not manage the EA at the activity level. Further project schedules submitted with progress reports could be at the output level.

Section #7 - Project Reports

This section should list the project reports the EA will be responsible for producing during the course of the project, including a schedule and a list of report recipients. Key project reports would include:

• Project Progress Reports (including performance and financial information) based on the Project Output and Activity Matrix and submitted quarterly or semi-annually;
• Annual Workplans (or workplan updates);
• An End-of-Project Report;

Other reports as determined by the nature of the project.

Note:
In this section of the Project Implementation Plan, the EA will be required to demonstrate an understanding of results-based reporting. The EA will also be required to elaborate on reporting formats in the event the subject was not covered sufficiently during contract negotiations. For more details on project reporting, see section 9.8.4.

Section #8 - Procurement Plan

In projects where a significant component involves the purchase of capital equipment and goods, a Procurement Plan will describe what equipment and goods will be procured, how suppliers will be identified and contracted, how the equipment and goods will be insured and transported, and at what point in time (and how) ownership of the equipment and goods will be vested in the recipient organization.¹

Section #9 - Environmental Management Plan (if required)

In certain circumstances, an Environmental Management Plan may be appropriate to outline the environmental measures to be taken during project implementation and the action required to implement these measures (for details refer to the CEAA and the Roadmap).

12.3.2 Reviewing and Approving the Project Implementation Plan

The PIP should be delivered to CIDA and the recipient country such that there is sufficient time for a proper internal review by CIDA (the PM in consultation with the project team) and the recipient country (in accordance with their procedures) before the appropriate committee meeting is held to jointly review the PIP with the EA.

The PIP should then be reviewed, amended if necessary, and approved at the first appropriate project committee meeting involving both CIDA and the recipient country.

Prior to approval, the PM and other project team members must ensure that the draft PIP is acceptable and meets all of CIDA's project management requirements. Staff may wish to consult key relevant documents including, but not limited to, the following:
 

• the PAD, MOU and EA's contract
• Financial Aspects of Project Management
• CIDA's Advance Payments Policy
• CIDA's Financial Standards for Local Costs
• Tied/Untied Aid Policy
• The Logical Framework: Making It Results-Oriented
• The Why and How of Gender Sensitive Indicators
• CIDA's Procurement Handbook for Goods and Related Services.
• Procedures on Ensuring Food Aid Quality before Distribution
12.4 Project Performance Measurement Reporting

12.4.1 Introduction

Project Performance Measurement (seesection 3.5 and section 9.8) is the responsibility of the PM with appropriate support and input from other project team members (especially the scientific and technical Specialist(s) and the field representative) and other project partners. Project Performance Monitoring and Reporting is carried out within the context of the Results-Based Management in CIDA - Policy Statement (1996) and CIDA's Policy for Performance Review (1994) with the subsequent Update of CIDA's Policy for Performance Review (1996). These documents define the Agency's management philosophy and practice to systematically focus on results to optimize value for money and the prudent use of human and financial resources.

These policies emphasize the importance of performance measurement and monitoring, managing for results, and performance reporting. The project's performance measurement indicators would have been developed during the preparation of the Logical Framework Analysis (Chapter 5) and the Project Performance Measurement Framework (section 9.8) and refined or confirmed in the Project Implementation Plan. Once the project becomes operational, the PM must liaise with the EA and recipient country partners to ensure that baseline data has been collected (if not done during project appraisal) and that the appropriate performance monitoring information (section 9.8.2) is being (will be) collected and incorporated into project implementation planning and decision making.

Information is provided through the progress reports (including financial) submitted by the EA as well as reporting and feedback from the field, recipient country partners, other donors, etc. In particular, the progress-towards-results reporting provided by the EA and a formal review of project progress by the appropriate project committee provide opportunities for all of the project parties to assess the project's performance based on the performance measurement information collected, the timeframe and the financial resources consumed. Project activities may then be adjusted, if necessary, to get the project back "on-track" towards achieving its planned results.

If circumstances call for a general review of project progress, or a focused review of project management issues, a management review (by appropriate program staff) or an operational review (usually by internal auditors or independent consultants as described below) may be undertaken.

12.4.2 Performance Indicators

Performance measurement and monitoring requires the systematic collection of performance information on the resources consumed, the targeted beneficiaries, and the developmental results achieved by a program or project. To accomplish this, an agreed-upon Performance Measurement Data Matrix (section 9.8.2) is needed to plan the collection, analysis, use and dissemination of performance information, including the collection of appropriate baseline data.

During project implementation, the continued validity of the Performance Measurement Data Matrix and the Indicators chosen at the output and outcome levels should be periodically reexamined. Indicators that are no longer considered appropriate should be discarded in favour of others from the "reserve pool" (see section 6.1 of the document The Logical Framework: Making It Results-Oriented).

If adjustments are required to the Project Performance Measurement Framework (section 9.8.1), for example to the performance monitoring approach, they should be made with the agreement of the major project stakeholders.

12.4.3 Internal Audits, Financial Compliance Reviews and Operational Reviews

a) Introduction

The PM should have a coordinated plan for managing project and EA performance. In addition to project monitoring activities, evaluations and site visits, the PM can obtain useful information from three other types of oversight - internal audits, financial compliance reviews, and operational reviews. The first - an internal audit of a project or a program - can be requested by the PM but is managed by the internal audit section of Performance Review Branch and performed independently of the project team. The second - a financial compliance review of a contract or a contribution agreement - is requested by the PM based on a review of the financial risks and is carried out by the Financial Compliance Unit of Finance Division of the Human Resources and Corporate Services Branch. The third - an operational review of the project - is initiated and managed by the PM. These tools are described more fully in the following sections.

All contracts and contribution agreements must include a provision allowing CIDA to conduct audits and reviews. Advice on the need for, and scope of, project audits and reviews is available from your FMA, from the PRB or the Financial Compliance Unit, as appropriate.

b) Internal Audit

An internal audit is an independent appraisal function that assesses the effectiveness and efficiency of management frameworks at all levels. It provides information on the effectiveness and efficiency of systems, practices and built-in controls adopted to achieve stated objectives. An internal audit assists CIDA managers and staff by identifying improvements to operational practices and systems that support the delivery of development assistance and contributes to the Agency's institutional learning capacity by disseminating best management practices.

Normally internal audits are performed at a level higher than an individual project, although projects may be examined as part of a larger audit (for example - an audit of basic education projects in the Agency). Internal audits are selected based on an assessment of risk, taking into account the concerns of the Agency's executive. The annual internal audit plan is approved by the Audit & Evaluation Committee.

Branches may request that internal audits be performed on individual projects, and these are usually approved by the Audit and Evaluation Committee as part of the annual internal audit plan.

Internal Audit Division does, however, perform special reviews of projects, contracts and contribution agreements where serious concerns have been raised.

c) Financial Compliance Review

The Financial Compliance Unit of Finance Division performs financial compliance reviews of contracts and contribution agreements on behalf of the operating branches. Most of the contracts and contribution agreements reviewed are selected by the programs concerned as part of an annual planning exercise. The selection is based on risk. These reviews focus on financial compliance with project agreements and do not address issues of economy, efficiency and effectiveness.

If the review discloses a possible fraud, the file is turned over to Internal Audit Division for further investigation. The program is obliged to inform Internal Audit Division directly if there is suspicion of irregularities.

In selecting a project for a financial compliance review, the PM should consider the following:
 

• reviews should be a positive learning experience for both the PM and the organization being reviewed;
• an initial review should be carried out early in the project's life, that is, between 12 to 18 months after implementation begins, so that sufficient time remains to take remedial action, as required;
• contributions/contracts over $5 million or with annual disbursements of over $500,000 should be considered for review on an annual basis.
d) Operational Review

Periodically, the PM, in consultation with other members of the project team, may decide to conduct or commission a review of various operational issues related to project or EA performance. This type of review (one of several types covered under the general heading of performance assessment) can be general or specific and normally focuses on EA practices and procedures. Operational reviews can be conducted by project team members, other CIDA staff, or consultants reporting to the PM.

12.5 Tools for Performance Monitoring and Reporting

The Project Performance Report (PPR) is the main performance reporting tool used at the Branch level to collect project performance information. The PPR reflects the results-based management approach and is based on the Framework of Results and Key Success Factors. The information collected is useful to managers for monitoring and decision making as well as for reporting to partners, Parliament and the public on resources invested and results achieved. While the PPR's focus is on implementation and on-going management for results, the project closure documentation provides a unique opportunity for CIDA and its partners to reflect on the whole of a completed (or multi-phase) project, from design to completion.

12.5.1 The Project Performance Report (PPR)

The Project Performance Report is the primary mechanism within CIDA for project/program self-assessment. The information collected in this report is focused on comparing expected results (as set out in the project's latest approved LFA) to the results actually achieved to date. If results achieved fall short of what was expected, this indicates possible problems which the PM will need to discuss and resolve with the project's other partners/stakeholders. The PPR may also provide some "lessons learned" during project implementation.

Note:
Reporting on progress towards any cross-cutting ODA program priority results (including gender equality) is an integral part of this process.

The PPR should be updated regularly. A final annual update is usually undertaken in the May-June period based on the fiscal year-end reporting prepared by the EA. It is important that all major stakeholders participate in this process, i.e. the PM (and other project team members) in consultation with colleagues in the field, the EA, as well as local partners and recipients. Involving those who best know the project will ensure that the information is accurate. This will also give the stakeholders the opportunity to discuss any identified problems and possible solutions.

PPRs are required for all projects with a value greater than $100,000 (excluding Canada Funds and Special Program and Project Expenses) which are still listed as operational (i.e., which have not been officially closed).

During the reporting exercise, each PM will meet with his/her Program Director to discuss the content of each PPR. Once there is agreement on the report's content, the report will be signed off by the Program Director, who assumes overall responsibility for the quality and accuracy of reporting.

12.5.2 Project Closure Documentation

Project closure is an opportunity for the project team to reflect on the results achieved by the project (including why various components were or were not successful), how these relate to overall program, branch and Agency goals and the lessons learned over the entire life cycle of the project.

Note:
For more information on project closure, please see Chapter 13: Project Completion and Closure.

12.6 Changes to Operational Projects

This section does not deal with:
 

• changes in project personnel or rates for project personnel;
• other changes to operational projects which are within the general scope, cost or timing of the Annual Workplan for the project;
• changes which increase or decrease an Annual Workplan component, but which can be accommodated within the overall scope, cost or timing of the project.


Those types of changes are dealt with in CIDA Administrative Bulletin #99-8, Change Requests to Workplans and Milestone Meetings and Contract Amendments.

A change in duration only to an operational project, without any change to the budget or expected results, is not considered a change in scope and can be approved through a simple memo to the Program Director giving the reasons for the extension and the proposed new termination date.

Rather, this section deals with changes which require formal approval before being implemented. These include:
 

• change in scope;
• cost increase;
• use of the risk allowance (see section 12.7 below).


While every attempt is made during the design of a project to structure the various activities and components in the most logical and practical way and to provide the best cost estimates, over time conditions related to the project may change, resulting in a need to alter the direction or composition of the project. For certain types of changes, formal approval is required as described in the following sections.

12.6.1 Change in Scope

Under Results-Based Management (RBM), a change in scope of a project occurs when there is an expansion, decrease or a significant change in expected project results (at the outcome level) from what was originally approved in the PAD (i.e. using the LFA attached to the PAD).

A memo to the Program Director (PD) to note the change in scope is sufficient if:
 

• the change in scope involves an expansion/increase in the results (scope) of a project with no increase in budget; or
• the change in scope requires an adjustment in the funding of the project, but can be accommodated within the approved project budget.

 

 
 
 

Note
§ This is the only case in which the PD can approve a change to the outcomes of a project. All other changes to outcomes require the approval of the original approval authority.
§ In both cases described above, the LFA would have to be updated.
§ If the change in scope requires a transfer of funds from direct project delivery activities (related to a developmental result) to administrative, management, monitoring, audit or evaluation activities, the approval of the PD is required.
§Any change in the scope of a project that significantly alters the design, implementation or operation of a project may warrant, and be subject to, an environmental assessment under the CEAA. See CEAA & the Roadmap for details.


If the change in scope decreases the expected results of a project, it is defined as a cost increase as indicated below.

12.6.2 Cost Increase

A cost increase occurs when:
 

• the budget for the project must be increased to attain the expected project results (at the outcome level) as approved in the PAD;
• the budget for the project must be increased due to new or enhanced expected project results (at the outcome or output levels) compared to what had been approved in the PAD; or
• the scope of the project (i.e. the expected results, beneficiaries, etc.) must be decreased so that the project can be completed within the approved budget.

Cost increases must receive formal approval as indicated below.

The PM is responsible for bringing all potential cost increases to the attention of senior management and requesting the necessary approvals. There may be cases of uncertainty on projects. The PM should discuss such cases with the PD and/or Financial Management Advisor for advice on how to proceed.

Note:
Cost increases on LOB 8 projects (see section 4.4.8) are funded by CIDA only in truly exceptional circumstances as the project proponent is deemed responsible for any costs beyond those originally given in their proposal to CIDA.

a) Authorities for the Approval of Cost Increases

CIDA's delegated authorities for the approval of cost increases are found in theDelegation of Selection Authorities and Contractual and Financial Signing Authorities.

When there is a decrease in the expected results (additional funds are not being requested), a value must be assigned to the foregone results and the approval level should be determined by the foregone-results value.

For clarification on the authorities for cost increases, consult your Financial Management Advisor (FMA).

b) Documentation for Cost Increases

For the approval of cost increases by the Vice-President, Minister or Treasury Board, the PM (in consultation with other members of the project team and the recipient country) must provide the same documentation that is required for a new project submission to the appropriate authority, including a new AIS Coversheet.

Annex A (Project Summary) of the cost increase Project Approval Document (PAD) should include the following information:

A. Background and Project Description

a) The original and any subsequent approval authorities with the previous submission numbers and dates.
b) The value of the requested cost increase and the new total cost of the project.
c) A summary statement of the reasons for the required cost increase.

B. Present Status

a) A description of the work completed to date and the funds disbursed to date including those disbursed by the recipient country, other donors, etc.
b) The originally approved project completion target date and the estimated new target date (or notification if the project has been deferred indefinitely).
c) Confirmed contracts and/or other commitments.

C. Rationale for the Cost Increase

Change(s) in circumstances responsible for the cost increase, the costs of these change(s), options considered to deal with change(s), the effect upon expected results, and overall impact of each proposed change(s), nature of the involvement of project stakeholders in cost increase recommendation.

D. Environmental Considerations

If necessary under the CEAA, the following revised documents are attached:

a) (Environmental) Preliminary Assessment Form (CIDA 1519-1) & (Environmental Assessment) Screening Report Form (CIDA 1519-2);
b) Environmental Assessment - Review of Screening Report and CIDA Course of Action Form (CIDA 1519-3);
c) Environmental Assessment - CIDA's Course of Action Following a Panel Review or a Mediation Form (CIDA 1519-6). (See CEAA & the Roadmap for details).

E. Financial Status

Impact of the cost increase on the country's Indicative Planning Figures (IPF), current year allocations and approvals.

F. Special Considerations

a) Any previous use of contingency reserves.
b) Any relationship to the original risk allowance (if applicable) and previous or current use made of it, future risks foreseen and need for additional risk allowance.
c) Other matters of relevance to the cost increase.

Upon approval of the cost increase, any changes to the Agency Information System (AIS), including coding changes, must be entered.

12.7 Use of a Risk Allowance

Risk allowance is a budgetary item established to cover the possible occurrence of a named potential external factor/risk(s) which is (are) not within the control of project personnel. See section 5.2.4 and section 10.7.

Risk(s) would have been identified during project appraisal and specifically identified in various parts of the PAD leading to risk allowance approval (Annex A - Project Summary; Annex C - Project Analysis Summary; and Annex D - LFA).

A risk allowance is not intended to provide funding for changes of scope or other such cost increases, even if the funds are not required to cover potential risks identified during project approval.

The use of risk allowance funds is subject to written approval by the Geographic Vice-President. Each approval for the use of the risk allowance is recorded as a project approval in the AIS and funds are committed accordingly.

Upon approval, the amount of risk funds approved and their allocation to the appropriate budget items by fiscal year are recorded in the project budget for the information of appropriate project participants. 

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¹The EA should be made aware of CIDA's Procurement Handbook for Goods and Related Services.