EEPP Program Support Unit 

EPF Operating Manual   General Principles 

Selection 

Following the EPF's evaluation of CPP applications or proposals under the open tender 

option, the Fund Manager will present to the FMC the evaluation results and 

recommendations of the portfolio of projects, which the Fund deems worthy of support to the 

FMC.  The FMC is responsible for selecting projects that will receive financial support from 

the EPF. 

The FMC will select CPP applications or proposals under the open tender option to receive 

funding based on the results of the evaluation procedure established.  In the event that 

projects are rejected that had received higher scores than some of the accepted projects, the 

FMC will provide an explanation to be included in the minutes of the FMC selection meeting.  

The Fund Manager will be responsible for providing an explanation for the rejection of an 

application or tendered proposal.  An indicative list of reasons for rejecting an application or 

tendered proposal and a model of the letter of rejection are provided in Annex 5.  

The letter of acceptance will include an invitation for the applicant to meet with Fund staff to 

negotiate the contract (Annex 6).  A draft contract will be attached to the letter.   

Negotiation and Award 

The major issues to be agreed by the Fund and applicant pertain to the timing of project 

implementation and disbursements, repayment schedule in the case of soft loans, provisions 

for inspection by Fund staff during and at the completion of project implementation, and 

reporting requirements imposed on the applicant.  In addition, agreement must be reached on 

contingencies such as abandonment of the project, unanticipated modifications to project 

design, disbursements, or implementation schedule. 

Contracts for grant disbursements will be signed by the Chair of the FMC (or the Chair's 

designee) and a designated senior official of the applicant s institution.  In the case of interest 

rate subsidies and soft loans, contracts will also be signed by a designated official of the 

participating bank (or separate agreements between the various parties as agreed upon with 

the bank).  Model contracts are provided in Annex 7. 

Once the contract is signed, the Fund will transfer Funds denominated in LE to the recipient 

according to the disbursement schedule described in the contract.  In the case of interest rates 

subsidies, the lender (the bank) will request periodic transfers from the Fund according to 

agreement between bank and the Fund.  The contract for the interest rate subsidy will indicate 

the amount of the subsidy to be disbursed as well as disbursement schedule and procedure. 

Implementation And Monitoring 

Projects will be implemented according to schedule in the contract by the applicant and/or 

agents or contractors retained by the applicant.  During implementation, the applicant should 

submit progress reports that describe the execution of the project and summarize project 

expenditures.  Standard monitoring report forms will be provided to applicants by the Fund 

(see Annex 8). 

Monitoring will be based on indicators and milestones established in the project's work plan.  

During the project implementation, the project holder is responsible for the production of the 

EEPP PSU 

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INTERNATIONAL RESOURCES GROUP