Presentation by David Toft

1. PROGRAMMING CYCLE, SETTING
PROGRAMME PRIORITIES AND
TARGETS, MONITORING, REPORTING
AND EVALUATION OF THE
PROGRAMME
David Toft
SST-CONSULT /Kommunalkredit Public Consulting
Promoting Clean Urban Public Transport in Kazakhstan:
Designing a Green Investment Programme
14 December 2016, Astana

2. • Options for basic institutional forms:
• What does programming imply?
• Context of programming
• Critical elements of programming
• Input to programming – environmental strategy, policy
and regulations
• Expenditure and non-expenditure programme
• Who should programme?
• Essential skills
• Programme implementation
• Conclusions
Structure of the presentation

3. What does programming imply?
• Process to articulate goals and objectives of an
environmental protection plan
• Dialogue on substance and meaning of the goals and
objectives
• Work to assess environmental benefits to be achieved by
the programme
• Activity to describe eligibility and appraisal criteria for
the programme
• Attempt to define and establish the best concept to
implement the essential activities of the programme and
its implementation mechanism

4. Context of programming
- strategy (needs and problems)
- policy (priority elements)
- plan (essential activities)
- framework (legal and
institutional)
- human health, environmental protection,
nature conservation
- air, water, nature, solid waste
- waste water treatment, emission
reduction, waste collection
- law, regulations, enforcement
- programming (non-expenditure
and expenditure programmes)
- priorities for programming
- setting programme targets
- costing a programme
- priorities within a programme
- programme implementation - projects selection, appraisal and control
- post-implementation appraisal

5. Basis for successful programming
• Sustainable development strategy
• Environmental policy
• Implementation plan
• Legal and administrative regulations
• Quality of strategic documents and regulations
• Willingness to cooperate among partners
• Availability of projects ready to implement
• Enforcement and control

6. Non-expenditure programme
• Goals and objectives to be achieved without public
subsidies
• Non-expenditure actions include legal and
administrative mechanisms (standards, taxes, fees,
permits)
• Regulatory requirements are intended to stimulate
environmentally responsible behavior
• Costs associated with environmental regulations are
borne by environmental users
• A programming entity is not expected to take part in
implementation of non-expenditure programmes

7. Expenditure programme
• Goals and objectives cannot be achieved without
subsidies
• Financial assistance to be provided to carry out
investment projects
• A programming entity needs to set minimum
requirements as to the development of a programme
• A programming entity needs to justify a cluster of
programmes accepted for implementation
• A programming entity must balance the cost of a
programme with its budget
• Programme priorities to be established to identify
eligible projects

8. Essential elements of an expenditure
programme
• Objectives: specific, measurable, realistic, time-bound
• Priorities: few, clearly stated
• Time-frame of a programme specified
• Cost estimates of achieving the objectives
• Sources of financing
• Eligible project types
• Eligible beneficiaries
• Terms of financing
• Principles and rules of operation
• Institutional arrangement for managing the
implementation of the expenditure programme

9. Emergency situations (1)
• No environmental strategy allowing for
adoption of an expenditure programme. Long
list of all-inclusive environmental problems, no
sense of urgency. The programme must be built
with assumptions concerning essential activities
to be carried out. A broad dialogue with general
public and contact with key stakeholders become
indispensable.
• The strategy lacks an implementation plan. A
wish list of actions must be scrutinised and
turned into applicable tasks.

10. Emergency situation (2)
• The implementation plan is incomplete. Too
many priorities are specified. Everything is
equally important. It is important to analyse
priorities and select their subset to be included
in a programme.
• The strategy and implementation plan are
complete and well elaborated. The responsible
government authority has developed a realistic
expenditure programme. An implementation
authority has obtained a sufficient guideline and
resources.

11. Who should programme?
• Government entities responsible for
environmental protection
• Local authorities and municipalities
• Suppliers of financing for public
expenditure programmes
• Other pubic agencies and institutions
• Programme implementation agencies if not
provided with public expenditure
programmes

12. Essential skills
• Capacity to transform goals highlighted in
strategies and policies into a set of actions
• Easy access to strategy documents
• Understanding of abilities and obligations to be
utilised and fulfilled
• Dedication to find the best way to address public
spending in environmental protection
• Willingness to cooperate with partners while
preparing a programme
• Establishing and using a feedback channel with
an implementation agent

13. Programme implementation
• The implementation agency should be capable to find
partners for reaching targets set by the programming
exercise
• Available subsidy should be distributed by an
implementation agency among efficient projects to make
them financially feasible
• Progress assessment of a programme and monitoring of
projects implementation should allow for meeting the
programme targets within a limited time
• Post implementation evaluation of the programme
should allow for improvements of both programming
and implementation

14. Conclusions
• Programming is essential for turning strategies and
policies into effective implementation
• Programming plays a role of a strategic conceptual
design that must precede effective distribution of
subsidies. Programming:
- adds a detailed description to goals and objectives
provided in strategies and policies
- presents an expected benefit (targets) to be achieved
within a limited time
- defines eligibility and appraisal criteria for successful
projects
- assesses costs

15. PRIORITISING
ENVIRONMENTAL
EXPENDITURE
• Stanisław Sitnicki
• EcoFund Foundation

16. Structure of presentation
• Key principles
• Public versus private financing
• Selection of an expenditure programme
• Example – Swiss compensation package
• Allocation of funds
• Concentration versus dispersion of funds
• Supporting innovations
• Involving public
• Conclusions

17. Key principles
• Public funds should not replace private financing
• Expenditure programme only if public subsidy
proves to be indispensable
• Funds allocated to the expenditure programme at
a strictly justified level
• Concentration on the most pressing issues
• Encouraging the private sector to take the lead
• Introducing new techniques and technologies
• Supporting education and public participation

18. Public versus private financing
• Expenditure programme is more often selected
than non-expenditure one
• Command and control system generates external
environmental costs that need to be
compensated
• Subsidies may also lead to unjustified earnings
• Public financing creates a positive incentives and
is treated as more friendly
• Limit to public assistance in meeting
environmental requirements to assure
competition

19. Selection of an expenditure
programme
• Problems:
- availability of well prepared programmes
- legal and institutional base to select programmes
- political pressure to propose a certain programme
• Approach:
- inspect strategy documents and policies
- check internal and external obligations
- monitor quality of environmental resources
- consult with scientists and NGOs
- compare costs and benefits

20. Example (Swiss compensation package to
Poland)
Objectives
Allocation
(million
Euro)
1. Improvement of services in the field of urban
infrastructure to raise people’s living standard and to
promote economic development
A. Management of solid wastes; collection, sorting, and treatment
of wastes and hazardous wastes, including hospital wastes
31.5
2. Raising of energy efficiency and reduction of pollution
emissions, especially the emissions of greenhouse gases
and hazardous substances
A. Introduction of renewable energy systems
B. Improvement of energy efficiency
31.5
3. Nature conservation; sustainable functioning of
ecosystems in the geographic concentration areas
4.0

21. Example (cont.)
Programmes proposed to implement
objective 1
Allocation
(million
Euro)
1.1 Regional municipal waste management
system for population over 100 000 people
10.5
1.2 Setting up of an innovatory system of the
selective collection of packaging wastes
(“Re-Centers”)
3.15
1.3 Development of the system of selective
collection of broken glass and improvement of
the broken glass processing quality, inclusive
of the related education
8.4
1.4 Reduction of asbestos hazard: A
programme “1 000 Roofs Asbestos-Free”
9.45

22. Example (Regional waste management
system)
• Goal: encourage a selective collection of municipal
waste for population over 100 thousand people
• Information gathering: how much waste is collected
within a selective collection system, what are the legal
requirements concerning selective collection of waste,
what should be a successful project
• Eligibility criteria: project size, title to the land,
location decision and feasibility study
• Ranking criteria: level of recovery (secondary
materials, biodegradable waste), cost-effectiveness,
technical innovativeness, location in priority areas,
education package
• Benefits: at least 15% of recovery of secondary
materials, at least 25% of recovery of biodegradable
waste, reduction of deposits at the landfill by 40%

23. Example (A system to collect a
packaging wastes)
• Goal: setting up Re-Centers in large shopping chains
• Information gathering: what is the potential to recover
packaging materials, how much should be collected, how
Re-Centers operate abroad, what should be a successful
project
• Eligibility criteria: available funds to balance costs, a
multi-annual plan of operation, a contract with shopping
centers to cover operating costs
• Ranking criteria: attractive design, degree of automation
and self service, professional staffing, attractiveness of
education, future development of a Re-Center
• Benefits: PET packaging 3 000 tons, aluminum cans
300 tons, glass 12 000 tons, paper 6 000 tons, batteries
150 tons per year collected in 25 Re-Centers

24. Allocation of funds
• General budget for environmental related
programmes
• Cost-effectiveness principle
• Earmarking of funds
• One year versus several years allocation
• Adjustment of an initial allocation of funds
• Availability of effective projects
• Possibility to correct and improve an
ongoing programme

25. Concentration versus dispersion of
funds
A. Concentration
- address pressing environmental issues first
- assure a quick improvement
- invest in modern technologies
- overcome limited skills and experiences
B. Dispersion
- assist many programmes at the same time
- minimise mistakes in prioritising programmes
- avoid accusations of being biased
- accept and test many different ideas

26. Supporting innovations
• Purchase and implementation
- sectors which offer new technologies (sludge treatment,
renewable energy sources – solar, biomass, wind,
electronic separators of glass and plastic)
• Production and marketing
- expand domestic demand to make innovative
production profitable, encourage world leaders to set
branches in the country, support marketing efforts of
domestic producers
• Know-how and education
- select expenditure programmes focused on the
exchange of environmental specialists and activists

27. Involving public
• Expert panels to comment on a list of
proposed programmes and their contents
• A list of possible programmes under each
objective which were not supported
• Mobilisation of local communities to
participate (financial or in kind) in
programme implementation
• Involving public (especially NGOs) in
monitoring progress implementation and
environmental benefit

28. Conclusions
• Programming is a social and political process
• Priority expenditure programs should be
selected among many others through an open
and transparent manner
• Burning environmental issues should be
addressed first
• Concentration of efforts is accompanied by
concentration of subsidies
• Innovations should be seen as an important
element of a priority expenditure programme

29. METHODS OF SETTING
PROGRAMME TARGETS
• Stanisław Sitnicki
• EcoFund Foundation

30. Why needed?
• To define outcomes or impact of the entire
programme
• To assess the cost of the programme
• To measure effectiveness of subsidies
provided for the programme
• To set milestones in programme
implementation and monitor its progress
• To perform evaluation of the programme
by comparing targets with outcomes or
impacts achieved

31. What should they be? (1)
• Specific – programme objectives to be
narrowed down to a list of outcomes
important to deliver an expected result
• Measurable – outcomes or impact of the
programme should be presented by
quantifiable indicators
• Realistic – expected targets should be
technically feasible and achievable based
on available resources and experiences
• Time-bound – targets should be reached
within a time reserved for programme
implementation

32. What should they be? (2)
• Precise as much as possible
• Establishing clear boundaries between
eligible and non-eligible projects
• Separating projects that cannot apply for
subsidy
• Sharp and well defined, neither too
broadly nor too narrowly
• Directing projects towards the
implementation of the expenditure
programme

33. Example: Development of a system of selective
collection of broken glass and improvement of the
broken glass processing quality
• Problem:
- improve the glass waste collection system and provide facilities for
the glass waste to be used as secondary raw material by glassworks
• Objectives
- recycling of glass should be at the level of 60% of its production in
2015
• Targets
- limit a significant deficit of broken glass as a component of
glassmaking material (realistic)
- collect and recover waste glass to double the current level of recycling
(250 000 ton a year, 20 % of production) (measurable)
- use efficient and fully automated glass sorting technologies to
separate it by colours (specific)

34. Example: Reduction of asbestos hazard: A programme
- “1 000 Roofs Asbestos-Free” for each of the four
regions of top priority
• Problem:
- total quantity (about 15 million tons) of asbestos requires disposal until
2032
• Objectives:
- elimination of asbestos from roof coverings
• Targets:
- removal of at least 165 000 m2 of asbestos-containing roofing panels and
insulation boards that pose a hazard of asbestos emission to the
environment (measurable)
- installation of hot water pre-heating solar collector systems subsidised,
if done simultaneously with the planned roof repair work (specific)
- about 200 tons of asbestos to be removed from roof coverings in the four
priority regions (realistic)

35. Process of setting targets
• Define problem or problems that need to be
addressed. Problems need to be described to present
their scope and consequences. They pose threads to
environment and health but may also provide
opportunities
• Translate the programme into objectives to narrow
down the necessary action. There is a long list of
actions to be taken to address a chosen objective
• Identify interim steps to achieve a selected objective.
Each of them may be seen as a target to be
accomplished in order to meet a selected objective to
a possible extent

36. Methods to select targets
• Assess a scope of a problem (what if not
action to be taken)
• List of critical objectives that need to be
addressed
• Rank objectives and set a priority order
• List targets to be achieved under each
objectives
• Rank targets and set a priority order
• Assess the cost of a programme and decide
on the scale of subsidy

37. Methods to rank targets – a multi-
criteria analysis
- Design a list of criteria to be used to evaluate each target
(environmental, technical, economic, social)
- Agree on the long list of targets that contribute to
meeting a required objective
- Decide on a maximum number of points that may be
assigned to each target based on a separate criterion
- Carry out discussion among expert panel on the
importance of each target
- Assign points provided by experts to each target and
prepare a ranking list

38. A practical approach to prepare a
ranking list of targets
• Collect opinions and preferences on the
proposed targets from potential beneficiaries
• Continue ongoing programmes by expanding the
scope of already selected targets
• Request independent expert’s proposal for
designing targets for the given objectives of
expenditure programmes
• Announce competition among eligible
beneficiaries for subsidies without specifying
targets

39. Conclusions
• The expenditure programme is ready to
implement only if problems, objectives
and targets are fully designed and
discussed
• The list of targets should be specific,
realistic, measurable and time-bound
• Adequate costing of a programme depends
on the availability of well defined targets
• The implementation of each target should
also have its limit. This requires another
prioritising exercise

40. PRIORITIES FOR THE
EXPENDITURE PROGRAM
• Stanisław Sitnicki
• EcoFund Foundation

41. Structure of presentation
• Priority setting among targets
• Criteria to select targets
• Allocation of subsidies
• Controlling the supply of projects
• Limit to subsidies
• Cost-effectiveness
• Differentiation of priorities for investments
• Conclusions

42. Priority setting among targets
• Expenditure programme does not specify projects
• Target list offers information on what the subsidy may be
spent for
• Projects may be accepted only if they contribute to
accomplishing targets
• Decision on targets helps to concentrate subsidies on key
investments
• Limited number of targets reduces pressure from
different stakholders
• List of priority targets adds transparency to distributing
subsidies

43. Criteria to select targets
• Type of environmental resources promoted
• Type of projects – investment, education,
research, etc.
• Type of beneficiaries
• Region or locality targeted for support
• Promotion of specific national objectives
• Addressing national, regional or local problems
• Fulfillment of international obligations

44. Allocation of subsidies
• Earmarking funds allocated to support a particular
target
- sector study was conducted in a programme
development phase
- demand for subsidy was assessed together
with a capacity to prepare and submit projects
• Limit on a number of projects which may receive subsidy
under each programme target
• No up-front brakedown of available subsidies among
priority targets

45. Controlling the supply of projects
• One project from each applicant
• Limited time to submit application (cut-off
date)
• One time call for project proposals
• Rigid formal screening
• Narrow list of eligible applicants
• Long list of eligibility criteria
• High requirements incorporated in
appraisal criteria

46. Limit to subsidies
• Differentiation by targets (education, campaigns,
monitoring, nature protection, etc. are better
subsidised than investment projects)
• Preferences for different groups of applicants
(government bodies and municipalities are given
higher subsidies for the same project)
• Preferences for a certain region (difficult
environmental conditions, high environmental
value, low level of development)

47. Cost-effectiveness mechanism
• Minimal requirement on cost-effectiveness
to accept project
• Similar subsidy to purchase products
which offer the same environmental
effects (solar collectors, wind mills, buses
operated on compressed natural gas
instead of oil)
• Cost-effectiveness included in the list of
project appraisal criteria

48. Differentiation of priorities for
investments
• Large and small investment projects
• Commercial and non-commercial projects
• Innovative and traditional investment
projects
• New versus on-going projects

49. Conclusions
• Priorities for an expenditure programme decide about
the final outcomes or impacts of subsidies
• Selection of priority targets depends on:
- availability of subsidies
- number of submitted projects
- preferences towards applicant’s group or project
locations
• Cost-effectiveness should be used as one of the
important criteria to prioritise targets within a
programme

50. MONITORING AND
EVALUATION
• Stanisław Sitnicki
• EcoFund Foundation

51. Monitoring and evaluation in
programming
Know the
problem/set
objectives
Communicate
problem
Sector
priorities and
targets
Cost estimates
Justify co-
financing
mechanism
Project
viability and
sustainability
Institutional
support
Monitoring
and
evaluation
Communicate
results

52. Monitoring and evaluation - principles
• Translate sector priorities into targets:
 Logical framework analysis
 Indicators
 Product indicator: measure of the object or tangible
structure that results from the implementation of a project:
- Length of new water (or wastewater) network constructed
- Number of wastewater treatment plants constructed
- Number of heating sources constructed
 Result indicator: measure of the extent to which an objective
has been achieved:
- Number of persons connected to water (or wastewater) network
- Number of persons connected to district heating system
- Number of persons with solid waste collection service

53. Monitoring and evaluation - principles
 Indicators
 Outcome indicator: measure of physical impact of a project:
- Volume of wastewater treated
- Volume of water supplied
- Volume of solid waste collected in segregation programme
 Targets
 Strategic (20-50 years)
 Medium-term (10-20 or 5-10 years when availability of
resources has not stabilised) – prioritise them
considering socio-economic, and environmental
impacts
 Short-term targets (1-5 years) aimed at achieving
medium-term targets

54. Transparent monitoring and evaluation
 Monitoring: continuous process of collecting and
analysing information to measure progress towards
expected results
 Starts with signature of financing agreement
 Reporting
 Document verification and site visits
 Compliance with time and financing schedule
 Evaluation – closes the project cycle
 Communicate results