Management of Funds for the Community Procurement Activities

  • Under  MACP, the cost of goods and equipments and civil work will be undertaken  from the funds comprising of the beneficiary contribution and project grant.

  • The payment to the contractor under MACP is made by DDR from the funds from the beneficiary account (maintained by DDR at district level) and from the project grants (made available  to the DDR at each district through BDS).

  • However, the FCSCs and RHs will make the payment to the contractor as these institutions will be adopting community procurement procedure.

  • The initial payment to the contractor by FCSC and Village Panchayat for the works executed will be made from the share of the beneficiary contribution maintained at the concerned institutions (FCSC contribution is 25% of project cost and Village Panchayat contribution is 10% of the project cost).

  • For the subsequent payments to the contractor, the FCSC and Village Panchayat will seek an advance from the concerned DDR to release the funds from the project grant available with the concerned DDR.

  • The concerned FCSC and Village Panchayat will submit the details of utilization of their own funds to the DDR (i.e details of payments made to the contractor from their own funds).

  • The concerned DDR will request the treasury to release the advance to the FCSC and Village Panchayat from the project grants available at the DDR office. The DDR will make a request subject to presentation of the utilization certificates of the funds of beneficiary institutions.

  • The treasury will release the funds in the account of the beneficiary institutions.

  • Subsequent release of funds will be made in tranches to the FCSC and Village Panchayat in the similar fashion as mentioned above subject to the presentation of the utilization certificates of the earlier tranches by the beneficiary institutions.

  • The accountant at the office of DDRCS will keep the record of both the project grants received and the release