Guidelines for Access to Funding Assistance

Section I:         Background

All constituencies in Solomon Islands are allocated equal amounts (regardless of geographical or population size) of financial resources each year by the Solomon Islands Government (SIG) and the Republic of China –Taiwan (ROC). Previously, the management and application of all these funds were left entirely to the discretion of each Member of Parliament (MP).  In recent times some progress towards stronger governance and more transparency have been achieved in the management of Constituency Development Funds.  Since 2013 by an act of Parliament the management of all funding to constituencies is now governed under the Constituency Development Fund Act, with the new Regulations.

The principle policy objective of the Constituency Development Plan is that financial resources should be applied where they will make the most effective development impact. To achieve that the main focus of the development program will address community-based projects and real capital development activities. The emphasis will therefore be on projects and programs that will enhance the community livelihood and those development infrastructure projects that will provide the enabling environment for increased economic opportunities in the constituency. To do that program activities will be in THREE levels. At the Household level – the two main programs are housing and solar lighting. At the Community level activities will target community-based programs in the social sector (water supplies and sanitation, medical and educational) and other community infrastructure projects. The third level is those Constituency-wide projects – which are large physical and economic infrastructure projects including roads, bridges, wharves and so on. At the centre of the constituency-wide approach is the development of the Afio Economic Growth Centre and Township Project.

This means all - and any - request for expenditure that is of a recurrent nature – for example sea fares, funeral expenses, medical expenses support, saint day celebrations and so on, will now take secondary consideration. The goal is to change the present practice of dependency on the MP and government hand-outs for normal ongoing activities. This new approach means that this practice must stop.  

With that in mind, the new Guidelines have been drafted so that a judgement will be made between what is recurrent and what is capital expenditure.  The long term policy emphasis is towards capital and human resources development needs in the constituency. Also importantly, in considering funding applications, the principles of partnership, cost sharing and share responsibility 

Section II:       Sources & Budget Allocations

Funding for constituency development comes from the Solomon Islands Government (SIG) and the Republic of China – Taiwan (ROC). In previous years, both governments provided financial resources to constituencies through NINE funds.  Some of these funds were administered by the Ministry for Rural Development (MRD) and some by the respective line ministries. Under the new Constituency Development Fund Act 2013, all these various funds have now been pooled together into one fund, the Constituency Development Fund, hence there will be no distinction between funding arrangements, whereas funding of projects will be in line with the constituency approved development plan and budget.    

There are three current sources of Funding which are earmarked for constituency programs. These are:

1. Ministry for Rural Development (SIG-sourced) Funds
   The previous SIG Rural Livelihood Fund, EGC funding, and other rural sector targeted funds have now been pooled into the Rural Development Fund. Use of and access to these funds depends on the individual constituency development plans priorities and annual budgets.  These funds are used for administration, logistical support, social and economic infrastructure.  These cater for development projects that advance the livelihood of rural households and communities. However, actual use depends on the constituency development needs and priorities.  In the case of SMC these funds can be applied to Afio EGC & Township Project development-related activities and programs, office administration, transport and logistical support.  The Afio EGC project is the overarching infrastructure development program for the constituency.  It encompasses the road network, infrastructure projects in all sectors including maritime, aviation, telecommunication, health, police, justice, utilities and the development of Afio Township itself.  This is based on the SMC long term plan (2015-2025 Infrastructure Development Program) which is supported and implemented under the Government policy on the development of rural economic centres, which was launched in 2013. Since then the majority of SMC funding has always been committed towards this project in terms of land mobilisation, consultations, land acquisition and all other ground work in various components and activities of the Afio EGC Project. In 2015 and 2016, more than $6 million of the SMC budget were used in the purchase of heavy machineries for the construction and rehabilitation of constituency infrastructure. Construction work is now planned to start in 2017. Total funding from this source is expected to be $5,100,000 in 2017. This fund is administered by the MRD.
2. ROC-funded Funds
   The previous ROC Millennium Development Fund, ROC Micro Projects Fund and ROC Rural Community Support Fund are now rolled over into one: ROC Support to Constituencies. This fund is aimed to advance health & medical, education and training needs, as well as water and sanitation programs and other community-based development projects initiated by rural communities and selected by the MP. However, the Development Committee has the authority to allocate monies from this fund in line the SMC annual development priority programs.
3. SIG Ministerial Grants
   Apart from the funds described above, the SIG supports various other constituency development activities and programs through line ministries. These funds are administered by the respective line ministries, most of which are the resourced-based line ministries.
   For 2017, the following line ministries are expected to fund program activities in constituencies: Ministry of Home Affairs ($200,000 church grant), Ministry of Education & Training ($300,000 school fees grant),  Ministry of Mines & Energy ($200,000 renewable energy), Ministry of Forestry $130,000 downstream processing), and Ministry of Fisheries ($200,000 coastal fisheries).     
   Where such grant funding is available, the usual method is for constituency office to submit their project applications to those ministries. The determination and approval of applications rest with the respective ministries internal procurement system.
   Section III:      Guidelines for the use of Funds
   The following Guidelines have been established to facilitate the application and management of the various funds aforementioned. The use of funds – both for community and households – is initiated by a request. All requests must comply with these Guidelines. As a general rule, a request with evidence to prove that the applicant (person, group/community) is already making own effort towards to achieving the project will be considered favourably. The Constituency policy approach is that the SMC will only provide assistance to projects: SMC cannot provide everything.
   As noted earlier starting in 2015 all funds intended for constituency programs and activities will be pooled in one fund, the Constituency Development Fund.  There will be no specific fund for any specific use as was the case before. Except for line ministerial administered funds, all ROC and SIG funds going through MRD will no longer have the specific uses as previously.
   Use of these financial resources and implementation of programs will be subject to an approved annual Constituency Development Priority plan, Annual Work Plan of those priority programs and an Annual Budget.  These documents will be produced by the constituency office, and endorsed by the Development Committee (DC).  Under the CDF Act regulations these plans will have to be approved by the Permanent Secretary of the Ministry for Rural Development (MRD) before implementation can start.  
   In the case of SMC, at the beginning of each year, the Office will draw up an updated Constituency Priority Projects and Activities Plan, together with an updated annual work plan of priority programs, and the annual budget. All these will be taken before the DC for endorsement before it submits to the MRD for final approval.
   Application Procedures
   As a matter of principle, and in line with new requirements for accountability and transparency in the management of constituency funds, every funding assistance request must be initiated through an application.  Requests will not be considered outside of these requirements and procedures. For the SMC office procedures, there are only two types of application forms: requests for income generating projects will be made through the Micro Projects Application Form (Yellow).  Micro Projects are small income-generating projects to the value of not more than $40,000 per project. As already stated earlier, this is only to assist constituents – not intended to provide everything towards a project. For all other types of projects, requests will be made by filling the Rural Livelihood Projects Application Form (Green). Each year, only a limited number of forms will be distributed by the Constituency Office – which must be authorised by the CDO. Only authorised distributed forms will be accepted by the SM Constituency Office.
   Making an Application
   All funding assistance requests will be ascertained with the Constituency Project Officer (CPO) who may assist in compiling the project details including help to fill in the relevant application forms.  Assessment of the viability and need for the project, is done in consultation with the respective zone committee. The committee will identity the beneficiaries and need for the project. Viability assessment of an income-generating project is critical, which remains the prerogative of the SMC Constituency office.
   Upon completion of that first part, the next step is to fill in the relevant application form. All parts of the form must be completed. When done, the application MUST be endorsed by any TWO officers of the respective Zone Committee (the Chairman, Vice Chairman or Secretary). Failing that, the application is incomplete and will not be considered. Upon endorsement by the Zone Committee, the application is then submitted to the SMC Office for appraisal. Where the proposal warrants the endorsement/approval of the DC, the application will be submitted to the DC for that purpose. If endorsed, it will be submitted to the MP for final approval, to await funding.
   Applications will be considered favourably where the nature of the project is in line with the priority of the SMC development plan and programs for each year. But an important consideration is where the applicant is already or has already advanced the project with his/her/their own contribution to start the project. The reverse is true if the applicant (s) have not shown any personal initiative towards the project.   
   Funding of projects will depend very much on availability of funds in the annual budget. Projects will be approved but may not be funded in the same fiscal year – due to funding constraints.
   Special Schemes
   Also in the SMC development program are certain priority programs and activities – which are included in the annual budget. Due to their special nature these schemes require special treatment – that is, to be treated outside of these application procedures. It means households do not need to fill out application forms for access. Currently there are THREE special Schemes are described below:

1. Rural Housing Scheme
   This Scheme was introduced in 2013. The policy goal is to assist every household in Small Malaita to have a permanent family house.  The Eligibility Criteria - priority is given to unemployed families in SMC rural villages. It is targeted to help those households that are without any house at all – for a start. Those households with the most urgent need for a “roof above their head” must be considered first.  Also those households which are more likely to immediately contribute towards completion of their family house will be considered favourably. 
    
   The Scheme is applied on the principle of “shared-responsibility & partnership”. Both the applicant and the Constituency will share the cost of building the house. It is important that the applicant must contribute towards the completion of the house. The Applicant’s contribution includes timber and labour. The Scheme will provide hardware materials: nails, roofing iron and ridge capping.  
    
   The house is a standard house plan of not more than 3-bedrooms. The house will be of basic structure from flooring, walls and roofing. Construction & supply of materials will be done in three stages: a) timber materials to be on site; b) construction of structure: floor to roofing; and c) roof covering & finishing. Supply of hardware materials will be provided upon verification of the completion of each stage. Window materials, internal linings, house furnishing, plumbing etc. will be at the owner’s expense.
    
   To access funding, the zone committee will submit one “bulk application”.  This comprises a list of names of households – using a form especially designed for this purpose (to be distributed with application forms) - for those households that meet the above criteria in their respective zones.  Each Zone will have only one list to be verified and authorised by the Three Officers (Chairman, Vice Chairman and Secretary) of the Zone Committee.  The Zone Committee will ensure the list of names of households’ heads is in order of priority, those that comply with the criteria first. There will be only ONE list per Zone for the entire term (FOUR YEARS). Each year, it is the duty of the Zone Committee to monitor the progress on the delivery of their list. When completed, the “bulk application” is submitted to the SMC Office for action.
    
   The actual number of houses to be funded during any one year will depend on the availability of financial resources allocated in the annual budget for the purpose each year. Each year, remaining households will be pushed for funding the following year.   The Constituency will not entertain any unauthorised lists or changes to submissions.
    
2. Solar Lighting Program
   This program was introduced in 2011. The policy intent is to ensure every occupied family house in the SMC must have lighting.  This program will continue until this policy objective is achieved. This program also includes all community-based buildings such as church buildings, community halls, clinics, classrooms and other public facilities.
    
   Access to funding and distribution of projects under this program, very much like it is with the Rural Housing Scheme.  The mode of application is exactly the same as with the Rural Housing Scheme, that is, through a “bulk application” from each zone committee. Allocation will be in accordance with the priority list authorised by zone committee in the bulk application. This list of priority remains for the entire four years term.
    
   In considering need, priority will be given to households (preferably family unit – not young and single persons) without any light and that are unable to afford it by their own means.  Those families that have been provided lights in earlier supplies must allow those that are not provided yet to be given the opportunity. It is to be emphasized that zone committees must exercise sound judgement in considering order of priority for families/households in their respective zones under this scheme.           
    
3. School Fees Assistance Program

This program is to assist parents and guardians in the SMC to complement their children’s school fees expense. This Fund is administered by the Ministry of Education.  In order to claim the following year’s allocation Constituencies must retire their funding expenses for the current year.

To qualify, the following conditions must be satisfied by students and parents:

1. Priority:                  Children of rural-based unemployed parents/guardians in SMC;
2. Institutions:            Local only;
3. Bracket:                 Secondary: F4-F7 & Rural Training Centres;
4. Maximum number:            1 student per household/family;
5. Maximum amount: Half of the year’s Tuition fees across-the-board;
6. Requirements:       

1. An authentic offer of place/proforma invoice from the school;
2. Names of parents, village & Zone;
3. Endorsement by either ZC Chairman, or Vice Chairman, or Secretary;
4. Certified copy of academic transcript (only performing students will be considered).

Procedure

The student/parent/guardian must obtain an authentic letter of offer or proforma invoice from the school. This is to be forwarded to the Zone Committee officials for authorisation.  The Zone committee is to compile their list of names – with all the required information – and submit the list immediately to the SMC Office. This information must reach the SMC office by January each year to allow for arrangements to be made with the respective schools before school year starts.

The Zone committee must consider those families that have not been assisted previously.  Priority should be given for those performing students – good academic transcripts. It is incumbent on the zone committee to ensure all the above conditions are satisfied before endorsement. No application form is required for this.

The SMC Office will be given a quota (annual allocation) to fill.  The Office will allow time for zone committees’ submissions – with letters of offer and proforma for students to come in, and set a deadline for completion of this process. When that deadline is reached the Office will stop receiving further invoices or offer letters or submissions. When the stop sign is issued, it means either the quota has been reached, total budget has been committed or the completion date has been passed.

The Office will compile all this information in its data base.  Pledge letters will be signed and issued by the MP in favour of the students direct to the educational institutions concerned, stating the details of the students as well as the school fee amounts being pledged. It is the responsibility of students and their parents to collect the pledge letters from the Office and send them to the concerned schools.   Parents and guardians must prepare to pay all other remaining fees and school charges.  

The Office will make payments direct to the schools/institution as funds are made available for school fees.      

MP’s Discretionary Scholarship Award

In 2017, the SI Government announced the award of FOUR overseas scholarship awards through each of the 50 MPs. This program is aimed at first degree courses.

In the case of SMC, the policy target will be in fields/disciplines that are in line with the training needs of the country.  Thus, applications will be considered for scholarship only for the following fields: Accounting, Medicine, Law, Civil Engineering, Information Technology and Public Administration. Applicants must prove their agility and capability to successfully complete the necessary course syllabus.  As a minimum the applicant must supply authentic copy of their academic transcript with the score not below 3 GPA.

Applications must be made by the students themselves by letter providing personal information, home address and contact, education background, name of most recent school/institution attended, and an authentic copy of academic transcript.   Applications must reach the SMC Office before mid-January. 

Awards are given at the discretion of the MP and his decision is final.  Applications will not be rolled over: each year’s awards will be considered by fresh applications.

Youth Volunteers/Scholarship Program

As of 2017, the ‘scholarship award’ program under the Youth Volunteer Scheme has been reviewed. The scholarship includes transport (from home village to the training institute at the beginning and at the end of the course from the Institute to home village) and tuition fees and necessary training materials only. 

Selection of candidates will be more rigorous than before.  Strict adherence to the principles of the Scheme, and especially the Pledge, will remain in the criteria. Students will do practical work experience and other relevant familiarization activities during school breaks. 

The maximum number of new awards to be given per annum is SIX.  These awards will be for skills training in the following trade courses: Carpentry, Electrical Engineering, Plumbing, Mechanical and Hospitality/Tourism.

Awards under this program will be for training at Don Bosco Technical Institute or similar technical training institutions.  Training at other rural training centres and vocational training centres is now discontinued.

Apart from the criteria under the Scheme, students must conform to the entry requirements by Don Bosco Training Institute. Students will be assessed annually. Students who do not perform will have their scholarships will be withdrawn.  

NOTE: AS OF 2016 ALL TERTIARY TRAINING (SINU, USP, UPNG) WILL BE EXCLUDED FROM THIS SCHEME

General

Certain identified projects in the constituency are usually funded from outside the SMC pool of funds. While they may be included in the Constituency programs these are not subject to the SMC application procedures described in these Guidelines. If already known, these specific projects will have been included in the work program and the respective annual budget. For example, projects associated with the Afio EGC and Township project, infrastructure programs (roads, wharves, bridges etc.), utilities, telecommunications, and so on. However, their implementation and reporting will still require the close cooperation between the DC, ZC and the SMC Office.

There are many other SMC activities and programs whose funding needs are not subject to the application procedures. These include for example, the cost of normal office and administration, transportation, the cost of administering the Youth Volunteer Scheme, the MPs constituency visits and so on. These activities are allocated funding through the annual budget and implemented directly by the Office in accordance with the annual work plan and annual budget.