FISP’s OPERATION

The Foundation has generated experience in preparation, implementation and completion of three projects supported by international financial institutions (IFIs): St. Petersburg Center City Rehabilitation Project; St. Petersburg Economic Development Project; and Completion of the St. Petersburg Flood Protection Barrier Project. Besides, FISP has prepared and is currently implementing four IFI-supported projects: Housing and Communal Services Project; Preservation and Promotion of Cultural Heritage in Russia Project; Development of Water Supply and Sanitation Systems Project; and Small Historic Cities Development Project.
All these projects are long term development programs comprising pilot projects and components eligible to enjoy the status of standalone projects.

A detailed description of FISP’s activity under the aforementioned projects is given in the respective sections of the website.

Since 1997 until now, FISP has been specializing in preparation and implementation of IFI-financed projects. Procurement is carried out pursuant to the IFI’s rules, audit is conducted according to the international standards while financial statements are prepared using both Russian and international procedures and formats.

Skills and experience developed by FISP and its staff at the project preparation stage:

·        Going through the full project preparation cycle from data collection for the project concept to participation in meeting all loan effectiveness conditions (for example, drafting of the Project Appraisal Document and the Loan Agreement, implementation of pre-project studies, and preparation of project Procurement Plans in the format established by the IFI);

·        Spearheading site development: planning of on-site utilities development and preparation of land plots for new construction;

·        Comprehensive site reconstruction and development of real estate management arrangements;

·        Creating a safe and comfortable living environment, enhancing investment attractiveness, and fostering the development of businesses, tourism and overall economic activity and, therefore, higher tax revenues for different levels of government;

·        Engaging with international organizations;

·        Investment project preparation using modern project finance methods;

·        Drafting business proposals on culture, education and development of entrepreneurship; preparing feasibility studies for future projects; and writing grant applications; and

·        Preparing concept notes and investment rationales for potential projects;

Functions performed by FISP at the project implementation stage:

·        Acting as a Client and a Project Implementation Unit/Implementing Agency (PIU/IA) under Agency Agreements;

·        Coordinating interactions between all participating organizations;

·        Investment project implementation;

·        Organizing a fruitful cooperation with international consultants;

·        Drafting design and bidding documents in compliance with Russian and international standards;

·        Obtaining approvals for design documents from all approving authorities, including the State Review Office of Russia;

·        Preparing and holding national and international competitive bidding to procure design services, services of the Engineer and designer supervision services and select contractors and suppliers to perform site reconstruction works and supply goods;

·        Developing and piloting new institutional, legal and financial management mechanisms;

·        Participation in the development of training programs and training of specialists from outside organizations;

·        Diversification of financial sources and devising of public-private partnership schemes for infrastructure rehabilitation and development;

·        Close interaction with media to raise public awareness and increase public participation in decision making;

·        Enhancing investment attractiveness of regions and municipalities;

·        Day to day management and oversight of contract implementation;

·        Identifying and addressing issues arising in the course of project implementation;

·        Organizing reconstruction of utilities and site landscaping in compliance with the approved design;

·        Organizing preservation works on cultural heritage sites (monuments of culture and history of peoples of the Russian Federation);

·        Organizing technical and designer supervision of construction process, acceptance of completed works and respective oversight;

·        Paying to contractors (suppliers, providers) for completed works (delivered goods, provided services) and making final payments for completed projects;

·        Maintaining cost accounting records and keeping cost statistics;

·        Handover of completed projects; and

·        Quality control of works during the warranty period.

FISP’s experience in financial management of the IFI’s loans and grants and co-financing resources allocated from the budgets of different levels of government:

·        Financial management of high-leverage projects;

·        Financial management low-leverage projects to ensure the most efficient use of federal budget funds;

·        Development and implementation of schemes for mobilization and disbursement of funds from multiple sources to ensure continuous availability of funds required to pay for goods, works and services;

·        Preparation of applications for co-financing, disbursement projections and reports, information notes on balances of funds as well as budget execution and expenditure reports;

·        Use of the IFI’s loan accounting and disbursement procedures;

·        Use of the IFRS and RAS accounting practices;

·        Project budget planning;

·        Maintaining project designated accounts;

·        Monitoring expenditure eligibility;

·        Establishing the internal control system, including:

o   Allocation of functions between the Foundation’s structural units;

o   Use of monitoring and audit procedures;

o   Verification of internal financial information against data from vendors;

o   Conducting an inventory;

o   Use of other internal control procedures.

FISP’s experience in carrying out procurement pursuant to the IFI’s rules:

·        Development of bidder selection criteria;

·        Drafting of terms of reference;

·        Preparation of sets of bidding documents;

·        Publication of procurement notices in Russian and international specialized media;

·        Establishment of procurement committees;

·        Drafting of procurement committees’ reports;

·        Obtaining no objection letters from the IFI;

·        Participation contract negotiations, etc.;

All aforementioned documents are prepared in Russian and English as required by:

·        The Guidelines on Procurement under IBRD Loans and IDA Credits;

·        The EBRD’s Procurement Policies and Rules;

·        The Guidelines on Selection and Employment of Consultants by World Bank Borrowers;

·        FIDIC.