DRAFT 02.09.09
GUIDELINES FOR PROJECT FORMULATION UNDER
PAK 3004 PAK-NORWAY INSTITUTIONAL COOPERATION PROGARAMME (PHASE-I)
1. THE PROGRAMME
PAK 3004 Framework for Pak-Norway Institutional Co-operation Programme (henceforth
“the Programme”) is a component of the bilateral development co-operation between the
Government of Pakistan and the Government of Norway. This Programme is a particularly
designed mechanism through which the Royal Ministry of Foreign Affairs ("MFA")
provides financial support for promoting institutional co-operation projects between
Norwegian and Pakistani institutions, approved by the Programme Steering Committee
(PSC), having all delegated authorities pertaining to the overall Programme management.
These guidelines are for the information of Pakistani and Norwegian institutions, seeking
financial assistance under this Programme, for possible technical and intellectual
cooperation.
2. Goal and Objective of the Programme
The goal of the Programme is to make Pakistan better equipped for meeting its international
commitments and contributing in poverty alleviation, and to strengthen Pakistani-Norwegian
relations.
The purpose of the Programme is to improve capacity, competence, and competitiveness in
relevant Pakistani and Norwegian institutions.
The above purpose will there be achieved by matching Pakistani and Norwegian institutions
for joint project development and implementation in sectors that are strategically important
for Pakistan to achieve its national goals, as well as meet international commitments, and
where Norway can offer cutting-edge expertise.
The Programme will contribute to improve internal and external performance and enhanced
technical and managerial competence, mainly in public sector institutions, but not excluding
non-governmental and private sector organizations in Pakistan.
While primary focus of the programme remains on capacity-building of Pakistani
institutions, the Programme recognizes that capacity-building of the Norwegian partner
institutions could also an equally important component to create an environment for
long-term and self-sustaining co-operation. In addition to capacity-building, the programme
will also provide knowledge about collaborating Pakistani partners.
It is envisaged that the collaboration will have an emphasis on mutual co-operation and
institutional strengthening, i.e. transfer of know-how/competence, rather than infrastructure
support. A project will not be limited to, but could typically consist of the following
activities:

- Exchange of technical, managerial, intellectual know-how;
- Joint Research and Training Programmes;
- Fellowships (short/long-term);
- Exchange of relevant staff members;
- Joint Workshops/ Seminars/ Study Visits;
- Acquiring Relevant Equipment.
3. Programme Administration
The Planning and Development Division (P&D) of the Planning Commission, Government
of Pakistan has the overall responsibility for the administration of the Programme.
A Steering Committee (PSC), consisting of representatives from EAD, Planning and
Development Division (P&D) and Royal Norwegian Embassy, is entrusted with the
responsibility of administering the Programme. It has the sole authority to formulate
appropriate policies for fulfilling the Programme objectives, receive, assess and decide on
new project proposals, monitor physical and financial progress of the approved projects and
take any other decisions for smooth implementation of respective projects under the
Programme. The Secretary P& D acts as Chair of the PSC.
The P&D is the focal point for identification of potential institutional partners in
consultation with other relevant stakeholders. Public Investment Programming (PIP) Section
of the P&D – being responsible for preparing development budget of the Government of
Pakistan – will assist the PSC in administering and monitoring of the Programme.
The PIP is entrusted to assist the PSC in administering the Programme in the following
ways:
1. Facilitate identification of prospective partners, in collaboration with Norwegian
counterpart institution(s);
2. Receive, evaluate, and seek expert opinion, if necessary, and present new project
proposals for consideration and possible approval by the PSC;
3. Arrange the PSC meeting(s), record and issue Minutes of the meeting(s), and issue grant
letters to the implementing agencies upon approval of the project proposals;
4. Receive and assess half-yearly, annual and final progress reports submitted by the
implementing agencies and present them for consideration of the PSC;
5. Receive, disburse and manage Programme funds; obtain utilization reports and audited
statement of accounts from the implementing agencies and present them to the PSC;
6. Undertake monitoring visits to review progress of projects and keep in constant contact
with the implementing agencies;
7. Provide advisory and other relevant support to the prospective applicants and
implementing agencies regarding all programme-related matters including preparation of
project proposals;
One of the tasks of PIP is to identify potential institutions for collaboration. PIP, to a large
extent, fulfils the task of identifying potential Pakistani institutions; whereas, Norad Oslo
and MFA have been designated the role of focal point with the following specific functions:
In instances, where Norwegian organization(s) approach Norad(?) for
identification of Pakistani counterpart(s), the focal point in Norway will

forward the proposal/concept note to the PIP for follow-up. The focal point
will not assess the concept/proposal at this stage.
If the PIP is able to find a relevant Pakistani organization, contact between
the institutions will be facilitated by the Monitoring Unit. It the two
institutions show interest in collaborating, they will be requested to develop a
joint proposal. The monitoring unit will assist them in this process, initially
by providing them required format and relevant information. Once the
proposal has been developed, the PIP may, if deemed necessary, send the
proposal back to the focal point with a request for assessment. . The
responsibility of the focal point will be to identify the relevant resource
person/centre to carry out the assessment.
In instances, where the PIP is approached by Pakistani institutions for
identification of Norwegian counterpart, it will: (i) try to identify a relevant
partner; (ii) seek assistance from Norwegian focal point to identify a relevant
partner; (iii) forward the request to the Norwegian Embassy in Islamabad for
follow-up with the contact point.
The Norwegian contact point will be responsible for developing and
maintaining a network of Norwegian resource persons/centers to assist in
identifying Norwegian organizations and to assist in assessment of proposals.
The PIP may also consider hiring external assistance for identification of
partners as well as assessment of proposals.
However, the project identification role is not limited to the above-mentioned Pakistani or
Norwegian institutions; the aspiring collaborators from both countries could also directly
approach the Secretariat or the Embassy respectively to discuss and submit an application
for possible cooperation under PAK 3004.
4. Priority Areas
Norwegian bilateral development co-operation with Pakistan focuses broadly on the areas of
good governance – including Human Rights and democratic development – and primary
education . In addition, cultural co-operation is given priority. Though not limited to, but this
Programme will also give priority to these areas. In the context of the Programme, the
transfer of technology and management know-how will also be given priority, subject to
inclusion of projects being strategically important for Pakistan in terms of fulfilling its
international obligations. It will be encouraged that cross-cutting issues related to gender,
environment, corporate social responsibility are duly addressed in the individual projects.
5. Selection Criteria
When assessing a project proposal, the following factors will be taken into consideration:
Transfer of capacity and competence
A major factor while assessing a proposal will be the competence of Norwegian
institutions to transfer relevant and economically viable technology/ knowledge and the
capacity of the Pakistani counterpart institutions to absorb the same.
. Sustainability

The proposal shall include internal mechanisms for the dissemination of gained
knowledge to other members of the organization. There should be a clear strategy on
how to maintain the technical know-how within the institution after termination of
the project.
. Developing Long-Term Relationships
While selecting projects, consideration would be accorded to those initiatives, which
are likely to lead towards creating links/relationships/co-operation, like to continue
even after the project is over.
. Mutuality of Benefits
The mutuality of benefits will be a strategic consideration in approving all projects
under this programme. Only those projects that ensure benefits to both the partner
institutions will be given priority and the projects should fall within the Pakistani
institutions priorities, relevance and interests.
. Gender sensitivity
The proposals should address the gender issues and indicate to which extent the
activities can stimulate women’s participation, or in any other manner be beneficial
to women.
Measures on how to avoid corrupt and fraudulent practices at any stage of the project should
also be addressed. Furthermore, projects many have direct or indirect effects on reducing
poverty. To the extent possible, this should be reflected in the proposals.
If found necessary, the appraisal of individual project proposals under this Programme, can be
entrusted to external Technical Consultants. This will be done selectively. The PSC will decide
projects to be referred to the external technical experts for review.
6. Eligibility of Institutions
The Programme will mainly be facilitating co-operation between public sector institutions in
Pakistan and Norway, which would further the objectives of this Programme. However, the
PSC may consider including renowned private sector institutions and non-governmental
organizations with recognized competence in their respective fields. As recommended by
the Partners' Assembly 2008, institutions from other South Asian and Central Asian
countries should also be invited to with a view to promoting regional cooperation.
7. Joint Proposals
Institutions in Pakistan and Norway, seeking to co-operate in respect of a specific purpose,
within the agreed priorities, may formulate a joint, need-based project proposal conforming
to the prescribed limits of budget and time. The proposals, inter alia, should contain clearly
defined area(s) for co-operation, the goal and purpose, expected results with defined
benchmarks, and measures to sustainability of the project, along with a results-based budget.
While institutions are expected to develop joint proposals on their own, the PIP extends help
in the formulation of project proposals and location of suitable Norwegian institutions.
Ultimately, however, it would be the sole responsibility of the two institutions to prepare
project proposals.

8. Time Frame
The maximum time limit for an individual project would normally be up to 3 years. The PSC
can, however, allow a longer time period for projects in special cases.
9. BUDGET
The financial support to a single project should normally not exceed NOK 1 million per
year. This financial support excludes the contribution of institutions in terms of
administrative costs, infrastructure and administrative support for implementation of a
project, which should be mentioned separately in the project proposal. In-kind contribution
should also be quantified and monetized, if possible. The Norwegian institutions will present
their budgets in NOK, while the Pakistani institutions in PKR; and the PSC will determine
total appropriation for the project in NOK (with equivalent Pak rupees) at the time of
approving the project.
The budget should provide details, including the person-hours/person-months of project
staff, the hourly rates (when personnel costs are required to be met out of programme grant,
number of hours/weeks, person-months, details of travel budget, number of days, the rates,
etc. The item-wise total under each budget head are to be presented in a manner that enables
comparison of the progress of the project against expenses charged under different budget-
heads.
The total NOK budget approved for the project will be final. However, any deviation, up to
10% within the total approved budget, can be considered by the PIP upon joint request from
the partner institutions, stating the reasons for the deviations, which must be approved in
advance. Requests for additional funding support will not be entertained even if the
completion of the project is delayed beyond the originally envisaged time schedule.
10. EXPENSES FOR PROJECT PREPARATION
The co-operating institutions are normally expected to bear the entire costs for preparing
project proposals, for possible financing under this Programme. However, the PSC, in
special cases, may agree to reimburse costs, limited to travel, boarding/lodging, daily
expense, which may be categorized as “feasibility costs”. The institutions desirous of
seeking such a grant may submit a proposal stating the area in which they wish to co-
operate, the present stage, expected travel costs, etc. This facility is extended to enable
participating institutions to have extensive interaction between them. Such requests are
considered only after it is seen that adequate groundwork towards preparation of a possible
co-operation project has been done and the participating institutions need such funding to
work out the final details.
11. ACCEPTANCE OF FOREIGN CONTRUBUTION BY PAKISTANI INSTITUTIONS
Pakistani institutions, receiving funding support under this programme, are required to have
a separate bank account, maintain books of accounts and submit them in the manner and at
the time, as required, to the PIP. The Norwegian institutions are also advised to open a
separate bank account and adhere to all accounting/auditing requirements of the Government
of Norway.

12. PROJECT APPRAISAL
For every project proposal, the PSC will decide the methodology for its appraisal. Whenever
it so decides, it may seek appraisal by external specialists, if considered necessary.
13. PROJECT APPROVALS
The PSC meetings shall be convened to review progress of ongoing projects, and consider
new project proposals for possible approval. When the PSC approves new project proposals,
the concerned institutions will be informed of the decision by PIP with a request that they
should sign an agreement between them, and submit a copy of the same -- along with an
annual work plan/budget, and a disbursement request, containing Bank account number and
other relevant details, required to transfer the funds.
14. AGREEMENT
Draft Agreement (Annexe-1), to be entered into between the co-operating institutions,
affirming their intention to accomplish the mutually agreed tasks, as outlined in the project
proposal, within the timeframe and budgetary limits, has to be submitted along with the
project proposal. This will be examined and approved by the PSC, along with the project
proposal. The funds will be released only after receipt of the Agreement, duly singed by
both co-operating institutions, along with other requisite documentation, mentioned earlier.
15. ROUTING
All project proposals will be sent to PIP at the address given below. Departments of the
Central and Provincial Governments, public sectors unit/institutions are required to route
their project proposals through their administrative ministries. Advance copies of project
proposals may also be sent by the co-operating institutions, along with draft Agreement, to
PSC c/o P&D, with a copy to PSC members.
The Project Director
Pak-Norway Institutional Cooperation Programme
C/o Planning & Development Division/Programming Section
Government of Pakistan
Pakistan Secretariat, Block 'P'
Islamabad
Phone: +92 51 920 21 24
E-mail: pn.inst.corp@gmail.com
16. RELEASE OF FUNDS
The PIP will release the first installment upon receipt of a joint request and following
documents:
• Approved agreement, duly singed by both the co-operating institutions.
• Copy of the Letter of Grant (LoG) duly signed by the co-operating institutions as a token
of acceptance of the terms and conditions of the grant.
• Intimation of bank particulars to which grant funds are to be transferred.
• Intimation of the place where books of account are maintained.
Release of subsequent installments will be made as per mode of payment laid down in the letter
of grant, subject to satisfactory implementation of the project activities and timely submission of
joint progress reports, including financial statements in the prescribed proforma. The request for

release of funds to either or both the institutions shall be made jointly by the co-operating
institutions.
17. Project Reports
The co-operating institutions are required to send joint half-yearly progress reports) to the
P&D/PIP. These reports are to be submitted within two months from the completion of the
reporting period, approved project activities and financial statement indicating the
expenditure incurred out of grant funds during the reporting period and cumulative
expenditure from the date of commencement of the project activities. The reports should
preferably be singed by both the institutions. In case this is not possible, a written clearance
of the progress report by both the co-operating partners should be forwarded to the PIP.
In addition, a joint annual progress report should be submitted by the co-operating
institutions within two months from completion of one year of project implementation. It
should cover all items corresponding to those required for half-yearly progress reports and
should contain joint work plans and corresponding budget for the ensuing period. An audited
statement of expenses relating to grant funds of both the co-operating institutions should be
forwarded along with the annual progress reports.
18. Final Report
The final report shall be submitted within 3 months of completion of the project and should
state clearly to what extent the mutually agreed objectives have been achieved. If the
objectives and results were not fully realised, the reasons for the same should be spelt out.
An assessment of the experience of both co-operating institutions in the implementation of
the project should be highlighted. An short-term impact assessment may also be conducted.
The potential interest for continued co-operation between the two institutions after
termination of funding under PAK 3004 Pak-Norway Institutional Co-operation Programme
should form part of the final progress report. The final report also should include the audited
statement of accounts for the total grant provide to the institutions.
19. Unutilised Funds
Unutilised funds on completion/termination of the project are to be disposed of in the
manner decided by the PSC. The decision of the PSC is final and no dispute can be raised in
this regard either individually or jointly by the co-operating institutions. The PSC may
utilize any unutilized fund in a project for any other approved project under the Programme.
20. Post Implementation Reporting
After completion of the project, the co-operating institutions may, on request, submit reports
regarding continued co-operation, sustainability, etc.
21. Feedback on Programme
In order to assess the achievements, efficiency and impact that projects may have generated,
workshops/seminars may be organised both in Pakistan and Norway. The purpose should be
to enable the participating institutions and the Programme administrators to exchange views
and come up with suggestions and recommendations for further improving the content and
methodology of implementation of the PAK 3004 Programme.
22. Dissemination of Findings / Results / Experiences
The participating institutions would be expected and encouraged to disseminate both
internally and externally the knowledge/benefits received by them through the projects,
subject to the legal provision in this regard. Creation of websites and holding of workshops/

seminars/conferences could be considered for achieving these objectives. Study visits by
other individuals/institutions to the participating institutions could also be organised for
disseminating to others the experience that a participating institution gained from the project
.
For any additional information/clarification in this regard, the institutions may contact the
Programme Secretariat, P&D/PIP; the Norwegian Embassy in Islamabad or Norad Oslo;
MFA (Section for Pakistan and Afghanistan).
Norway:
Norad, Oslo
MFA, Section for Pakistan and Afghanistan
Pakistan.
The Project Director
Pak-Norway Institutional Cooperation Programme
C/o Planning & Development Division
Government of Pakistan
Pakistan Secretariat, Block 'P'
Islamabad
E-mail: pn.inst.corp@gmail.com
The Minister Counsellor
Royal Norwegian Embassy
25, Street 19, F-6/2
Islamabad
E-mail: Emb.islamabad@mfa.no
Note: The Programme guidelines are meant for the information and guidance of institutions
desirous of seeking assistance under the PAK 3004 Programme. However, these should not
be construed as conferring any contractual or other rights on any institution or person. For
the administration of the PAK-3004 Pak-Norway Institutional Co-operation Programme, the
Programme Steering Committee is the body, in which all powers to take decisions are
vested, including powers to change or take exceptions from these guidelines.