FAO PROJECT CYCLE WORKSHOP

2
Unit
Phase 1: Identification
 Unit 2:
Phase 1: Identification

1 IDENTIFICATION
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FAO Project Cycle Workshop Unit 2: Phase 1: Identification

Objetive of the Phase 1:

The purpose of the Identification Phase is to ensure that a project idea is fully
aligned with the Sustainable Development Goals (SDGs), the FAO Strategic
Framework and with the development results of the recipient countries and
reflected in the Country Programming Framework (CPF). Furthermore, this
project idea must not represent any significant risk of political sensitivity for the
Organization and/or its members.

Accountability for Phase 1:

Project ideas enter the Organization from a multiplicity of sources (recipient
government requests, resource partner priorities, FAO Staff and partners). However,
accountability for the Identification Phase is with the Project Formulator who can only
be one of the following Staff Members:

• FAO Representative (FAOR) for projects of national geographic scope1;

• Subregional Coordinator (SRC) for projects with a subregional dimension to be

implemented in two or more countries of the same subregion;

• Assistant Director-General/Regional Representative (ADG-RR) for regional

projects to be implemented in countries in two or more subregions within the
same region;

• Heads of headquarters Technical Units for interregional (INT) projects to be

implemented in countries in more than one region, or global (GLO) projects for
normative projects with no or very limited operational activities at country level.

While Project Formulators will in the majority of cases delegate

formulation activities to others, he/she remains accountable
for the management and due integrity of the process.

1.- As per AC/2016/14, for countries without FAORs, the Deputy Director-General Operations
(DDO), in consultation with the ADG-RR, designates the Deputy Regional Representative (DRR)
or Regional Programme Leader (RPL) [ex-Regional Strategic Programme Coordinator (RSPC)]
as Project Formulator for projects of national scope.
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

Steps under the Identification Phase 1:

Phase 1 involves the implementation and development of 5 steps, which seek to
develop potential project ideas into formal project formulations and designs to be
presented in an instrument named Concept Note (CN). In order to achieve the above,
it is necessary to form teams and articulate the work of FAO for its achievement and
development.

Steps under the Identification Phase:

• Step 1: Identification of a Potential Project Idea

• Step 2: Establishment of a Project Task Force (PTF)

• Step 3: Development of the Concept Note (CN)

• Step 4: Submission of Concept Note for endorsement

• Step 5: Endorsement of Concept Note

Each stage of the phase is detailed below.

 Unit 2:
Phase 1: Identification

Step 1:

Identification of a Potential
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Project Idea
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

Step 1: Identification of a Potential

Project Idea

The Project Formulator identifies a project idea,

keeping in mind the FAO Strategic Framework, its
objectives, and the contribution to SDGs, as well as
the objectives of other stakeholders and the problems
to be addressed.

6
 Unit 2:
Phase 1: Identification

Step 2:

Establishment of a Project
©FAO/ Max Valencia

Task Force (PTF)

FAO Project Cycle Workshop Unit 2: Phase 1: Identification

Step 2: Establishment of a Project Task Force (PTF)

The Project Formulator establishes a Project Task Force (PTF), considering the
following actions:

2.1. El formulador identifica los miembros mínimos de PTF

• Formulator
• LTO - Lead Technical Officer
• FLO - Funding Liaison Officer
• TO - Headquarters Technical Officer
• Other Technical Officers

In addition, based on the specific operational modality and/or nature of the project,
the inclusion of the following Officers may be necessary.

• IT Officer
• OER Officer
• South-South Cooperation Officer
• Statistic Officer
• Legal Officer
 Unit 2:
Phase 1: Identification

Step 3:

Development of the
©FAO/ Max Valencia

Concept Note
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

Step 3: Development of the Concept Note

3.1. Formulator ensures all required sections of FAO CN are

completed :

The PTF chaired by the Project Formulator, with the LTO as alternate chair, develops the
CN in FPMIS. The Project Formulator and members of the PTF are accountable for the
technical substance and proposed operational modalities described in the CN. The CN
includes a mandatory section on alignment of the project to the Strategic Framework
and to the SDGs. When creating the Concept Note in FPMIS, the PTF fills in the specific
module of Alignment to FAO Strategic Framework, identifying the Programme Priority
Areas (PPAs) (up to three) and the associated SDG targets (up to ten) with relevant
percentages. The FPMIS module guides the selection of the SDG targets based on the
PPA/s selected (as per the FAO PWB). Only the SDG targets associated with each PPA
can be selected.

If there are technical areas of the project outside the expertise of PTF members, then
the Formulator, in consultation with the LTO and headquarters Technical Unit to which
the LTO relates from a technical perspective, should take necessary measures to
identify and negotiate the assignment of a Staff Member with the required expertise
(including, where relevant, a CIO Officer. Read more).

During the completion of the CN, the Project Formulator consults with the counterpart
country (or countries), identifies partner(s), regional organization(s) and potential
resource partners.

Section 2.2 of the CN should clearly indicate which

operational mode is considered. There are two operational
modes:

a. Direct: Cash and Voucher modality MS 702 and

Triangular South-South Cooperation.

b. Indirect: Operational Partners Implementation Modality

(OPIM) MS 701.5.
 FAO Project Cycle Workshop Unit 2: Phase 1: Identification

3.2. Complete the Environmental and Social Risk Screening

Checklist (by the LTO) and certify the Risk Classification
of the project (by the Environmental and Social
Management/ESM Unit)
FAO’s Environmental and Social Management Guidelines (ESMG) have been
mainstreamed through the Project Cycle in accordance with DGB 2015/08.
Implementation of FAO’s ESMG applies to all projects above USD 100 000, regardless
of funding source.

The requirement during the development of a CN is that the LTO is accountable for
ensuring:

Completion of the Environmental Certifying the Risk Classification

and Social Risk Screening in FPMIS. While any other member
Checklist in FPMIS (by themselves of the PTF may complete the
or any other member of the PTF Checklist, only the LTO can certify.
on their behalf). By completing
the Checklist, a Risk Classification
for the project is automatically
generated by the system.

Thus:

For low-risk projects, the
PTF can proceed with
project Formulation without
taking any specific Risk
Management measures.
In the case of moderate risk
projects, the PTF will receive
an automatic notification
from FPMIS once the
certification is validated by
the ESM Unit, specifying the
requirements related to the
Environmental and Social
Risk to be considered during
project Formulation.
For high-risk projects, the
LTO needs to contact the
ESM Unit to determine the
modality and timing for
carrying out an Independent
Environmental and Social
Impact Assessment.

The level of risk may not always be immediately apparent or

may change during the life of the project. Therefore, the initial
Risk Classification may be subject to change by the LTO or
review from the ESM Unit at any stage of the project in order
to identify indirect, cumulative and associated impacts, as
relevant.
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

3.2.1. Postponement of the Risk Classification and Certification from

the Identification Phase to the Formulation Phase

In exceptional cases where the Risk Classification cannot be determined at

CN stage, Certification may be postponed to the Formulation Phase (always
prior to Phase 3 Appraisal and Approval). Postponement of Risk Classification
and Certification is carried out in FPMIS subject to the agreement of the ESM
Unit.

3.2.2. Emergency Response and Environmental and Social Risk

Management (ESRM)

A fast track ESRM process is applied to Emergency Response projects if they meet the
following three criteria:

1 2
Formulated as emergency
projects (for definition see
section on “emergency
response projects”)
3
To be implemented over 12 Classified as low or
months or less. moderate risk projects.

Risk Screening and Classification must always be carried out for Emergency Response
projects before the project is declared Operationally Active.

However, to expedite project approval thereafter, Emergency Response projects which

meet all the aforementioned three criteria can postpone compliance requirements
(e.g. certification of the Classification and development and presentation of an ESRM
Plan for endorsement by the ESM Unit for up to 30 days from the date upon which
the project is declared Operationally Active. The ESM unit must be notified by email
by the Formulator or LTO that the postponement is taking place. At the end of the
postponement period, the LTO, Budget Holder and PTF, as well as the ESM Unit, will be
notified through FPMIS to ensure immediate completion of ESRM processes.

Any Emergency Response project carrying a high-risk

Classification will not be able to proceed to Implementation
without discussion with the ESM Unit. This may lead to
project re-design to eliminate the high risks, or immediate
implementation of actions, prior to approval, to mitigate or
reduce the risks
 Unit 2:
Phase 1: Identification

Step 4:

Submission of Concept Note

©FAOAmericas

for endorsement
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

Step 4: Submission of Concept Note for endorsement

4.1. Formulator validation in FPMIS

When PTF members agree that the CN provides a sufficiently strong basis from
technical, strategic and operational points of view to develop a fully-fledged Project
Document, the Formulator/Chair of the PTF first formally validates the CN in FPMIS.
The purpose of this validation is to enable the Formulator to exercise full ownership
and accountability for the completeness, accuracy and quality of the CN, regardless of
who has assisted in its preparation in the system.

4.2. El formulador envía la nota conceptual (CN) para (CN)

aprobación a través del FPMIS
After Formulator validation, the Formulator officially submits the CN, through FPMIS, for
screening and endorsement. In case the submission in FPMIS is done by another staff
member, the Formulator Clearance step online is required. The Pipeline Endorsement is
instead as follows:

El process is the following:

FAO Representatives (FAORs) and ADGs/Regional Representatives

Subregional Coordinators (SRCs)
submit their project CNs to the
ADG-RR or designated ADG-RR
representative.
take responsibility for reviewing and
endorsing their own project CNs.
Heads of headquarters Units take
responsibility for reviewing and
endorsing their own project CNs.

The CN is either endorsed or rejected as per the process

described in Step 5.
 Unit 2:
Phase 1: Identification

Step 5:
©FAO/ José Negrón Valera

Endorsement of
Concept Note
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

Step 5: Endorsement of Concept Note

This instance corresponds to the last step of Phase 1, in which the approval of the CN
is obtained and the FAO’s next Phase of the Project Cycle is initiated.

Below are the possible scenarios and milestones that mark the final Step of Phase 1.

5.1. Review of CN by relevant manager

(as indicated under Action 4.2. above)

The review is carried out by the above mentioned

managers. Either the CN is endorsed or it is
rejected. If rejected, Formulators are requested to
address the comments made and re-submit the
CNs.

5.2. Formulator, assisted by PTF as necessary, responds to/

incorporates comments from reviewers.
Formulators need to respond to and incorporate as required the comments from the
CN reviewers.

Review can be an interactive process but if the reviewers have been appropriately
involved in the process from the start, this will facilitate endorsement.

RLC has an internal NC review process in addition to that established in the manual,
in order to ensure the quality of the projects and the fluidity of formal approvals.
The steps of this internal process are detailed below:
a. Review by PTF members.
b. Technical approval by the LTO (via email).
c. “Submit” by a PTF member.
d. Endorsement by Formulator in FPMIS
e. Internal circulation (also known as “Peer Review”) between the sub-regional
Coordinator (in case of national projects) and the lead RI leader, who give their
validation via e-mail.
f. Endorsement of the ADG/RR in FPMIS.
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

5.3. Relevant managers provide necessary clearances

ADG/RR gives “Pipeline Clearance”

When the last clearance has been provided, this action automatically:

I. endorses the CN;

II. changes the projects status from ‘Idea’ to ‘Active Pipeline’ in FPMIS;

III. opens the facility for subsequent submission of project Budget for clearance on
cost recovery by OSP (where required2); and

IV. notifies all members of the PTF (as recorded in FPMIS) via email.

The Formulator can then proceed with the Formulation

of the project, as described in Phase 2 of the Project Cycle
(Formulation).

2.- The OSP submission process is explained in the Phase 3 Assessment and Approval.
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

5.4. FLO formalizes relationships with resource partners and

recipients.

On the basis of the endorsed CN, the Formulator and/or FLO obtain an indication
of the resource partner’s general interest in funding the project. This informs the
Formulator’s decision on whether to develop a Project Document.

PSR is the Corporate Unit responsible for liaising with donors at capital level and
is the main channel for communicating and formalizing projects with resource
partners.

PSR is the Corporate Unit responsible for liaising with donors at capital level
and is the main channel for communicating and formalizing projects with
resource partners. OER handles the humanitarian projects while OCB the Global
Environment Facility (GEF) and Green Climate Fund (GCF)3.

Funding liaison functions for TCPs are handled by PSS for GLO and INT TCPs and by
the Regional Offices for national, subregional and regional TCPs.

No statements of intent/agreements should be reached with

donors outside those established herein to avoid creating
non-standard agreements without due diligence regarding
risk exposure for the Organization.

If the CN has been formulated in response to an official

government request, then the PTF Chair should inform the
government(s) that FAO will pursue elaboration of a Project
Document based on the endorsement of the CN.

3.- Appendix to the Project Cycle Guide provides more details. Funding liaison functions for
TCPs are handled by PSS for GLO and INT TCPs and by the Regional Offices for national,
subregional and regional TCPs.
https://intranet.fao.org/faohandbook/area/projects/guide_to_the_project_cycle/appendices/
FAO Project Cycle Workshop Unit 2: Phase 1: Identification

5.5. FLO assigns Project symbol

Following the creation of an Active Pipeline (though the endorsement of the CN), an
automated FPMIS message will be sent to the FLO, with a copy to the Formulator
and other PTF members, referencing the FPMIS entity number and requesting the
assignment of a Project Symbol to the entity by the FLO. This allows the project to be
identified based on fund type, resource partner and recipient.

By way of summary, the main objectives in the development of Phase 1, and key
recommendations to consider at this stage, are reiterated below:

• The NC structures the project idea around the FAO Quality Assurance Criteria of
relevance, feasibility and sustainability giving rise to a complete project document.
The formulation of the project Concept Note (CN) is developed and validated by
technical teams (LTO, Formulator, RI Coordinator, Sub-regional Coordinator, ADG)
in order to ensure alignment with the strategic framework and priorities of the
organisation, as well as national priorities within the CPF.

• The procedure contained in this Phase applies to all FAO projects, covering both
Trust Funds (TF) and Technical Cooperation Programmes (TCP ).
Key Messages
However, now... How is it done?

1. Preparation and submission for approval of the Concept Note (CN):

a. Contact the RI and cluster leader, for the identification of the LTO and/or LTC of
the project. The RLC has a subsidiarity criterion for technical assistance, i.e.
that the projects are technically assisted by staff located in the sub-regional
offices, the Regional and HQ.

b. The project formulation team must ensure that the Concept Note has a
sufficiently solid basis from the technical, strategic and operational point of
view, i.e. ensure the quality assurance criteria (Relevance, Sustainability and
Feasibility), in order to obtain the approval of the LTO, initiate the peer review
and approval in FPMIS. To the extent that the formulating team has contacted
the project’s technical staff, the gender and indigenous peoples team, and
field programme colleagues, collegial approval will be easier. Remember that
in RLC this review process is initiated “off-line” to facilitate exchange and
modifications, which facilitates approval in the system.

2. Establishment of the Project Task Force (PTF): In addition to the minimum

necessary team (Formulator, LTO, FLO, LTU HQ), include the relevant actors
for the Relevance, Sustainability and Feasibility of the project, such as: Core
Cluster, Gender, Indigenous Peoples, Rural Development, Capacity Development,
Operational, Administrative, Procurement, others. Each member of the project
task force should have a specific role in the different stages of the project cycle.
It is important to remember that each member of the task force has a cost
associated with his or her intervention that can be quantified as co-financing or
charged to technical support items (TSS, FEE) depending on the type of project.
The project task force can be adjusted during the different phases of the project
cycle.

3. Address environmental and social risks: For projects classified Moderate or High
Risk, the LTO must coordinate with the ESM unit the necessary requirements to
obtain the respective approval.

4. Maintain permanent contact with the FLO to obtain guidance and/or

recommendations on resource partner requirements and formats necessary for
the formulation of the project document.

5. Always ensure the correct alignment of the project with the country needs of
the MPP and the corresponding scalability of the results at the national level to
ensure progress on the SDGs.

6. Ensure the correct identification of the problem and solution tree to correctly
identify the impacts, outcomes and outputs that will form the Logical Framework
matrix and their respective indicators.

7. Review the evaluations previously carried out by projects implemented by FAO to

ensure systematisation from the beginning of the project cycle phase and not to
start from scratch.

8. Consider that projects under USD 500.00 do not have to go through a PPRC
process, therefore, it is highly recommended for this type of projects to involve
the gender, indigenous peoples and capacity development units to ensure a
successful implementation in a comprehensive and integrated manner.
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FAORLC FIELD PROGRAMME UNIT