Capacity building: Funds will be available for capacity building and skills training for district officers on a demand led basis to enable them to facilitate the activities of both CIF and DIF project cycles, training of trainers for community capacity building such as home based care, HIV/Aids counseling, participatory techniques, and so on.

DIF for district projects: The DIF component will provide funds to qualifying district councils to finance economic and social infrastructure benefiting more than one community such as district health facilities and market places. These projects will be identified through a district planning process and implemented, managed and maintained by the district administration. These projects will be a district responsibility for operations, management and maintenance.

The DIF component aims to facilitate the creation of capacity to devolve present ZAMSIF functions to eligible districts. The DIF will put in a mechanism whereby the process proceeds according to district capacity. As capacity increases then the responsibilities increase. As the responsibilities increase, the access to benefits to the district also increase.

District assessments will determine the classification for all districts. The assessment will be done by the Provincial Assessment Committees and the graduation or demotion from one level to the next will depend on this assessment. Districts will be promoted or demoted to levels appropriate to the level of DIF intervention.

The Levels are as follows:

	Level 1: Districts in Level I will be those which have agreed to ZAMSIF conditions and are able to adequately sensitize communities and facilitate the access of communities to CIF, perform desk appraisals and monitor community projects and be in Level 1 of the CIF. These districts would not be able to access DIF funds for DIF capital projects but will be able to demand training, technical assistance and capacity building.
	Level 2:Districts which have demonstrated capacity to facilitate CIF project cycle activities which include participatory identification processes with communities, conduct desk appraisals regularly, facilitate field appraisals, regularly monitor and evaluate community projects, but still need assistance to complete an accurate project budget. The district will also have sufficient technical capacity to implement a DIF project and account for the funds; have evidence that the DDCC meets quarterly with good attendance; a District Planning Officer; and a District Situation Analysis developed and approved by the District Council. Meeting these criteria will allow the district to access the DIF for DIF projects worth up to total of US $ 30,000 for as long as the district remains at Level 2.
	Level 3: Districts which have performed well at level 2, have proven financial management capacity, have developed District Poverty Assessment (DPA) and District Development and Poverty Reduction Strategy (DDPRS) approved by the District Council, show evidence that approved CIF projects reach those targeted by the plan, have design, costing and budgeting skills would then be eligible for resources to fund one or more DIF projects up to a cumulative amount of US $ 75,000 for as long as they remain level 3. Districts in this category will be in Level 3 of the CIF.
	Level 4: Districts which continue to perform satisfactorily on the pre agreed criteria and are in Level 4 of the CIF and which have an approved Annual Investment Plan based on DDPRS will be eligible for an annual DIF allocation.;
	Level 5: Districts that show consistent good performance of councils for more than one year, which have a basic poverty information system, evidence of some sub district planning would be eligible for an annual allocation plus a premium.

DIF Planning & Poverty Reduction

The minimum access conditions for a DIF project include capacity for some district planning. The DIF will provide the incentive for districts to improve their capacity for district planning as the targeting, identification, appraisal, and approval of projects will be on the basis of an increasingly comprehensive district planning process.

ZAMSIF will provide the incentive to achieve an increasingly comprehensive plan over time and as districts move up the levels. The type of plan expected is therefore different for every level of ZAMSIF, starting with a very simple District Situation Analysis which would summarise the existing situation in the district but finishing at Level 5 with a comprehensive District Development Plan and Annual Investment Plan. The process of district planning will be a gradual process, for some districts taking up to 10 years and will include:

1. District Situation Analysis which the district planning office should compile, DDCC endorse and district council approve, should be a simple document which brings together sector reports on district status and sector programmes, an area description, status and location of programmes preferably mapped.
2. Poverty Assessment which should include sector-wise definitions and analysis of poor and district status. These will be combined to form a spatial description of above by geographical area, mapped if possible. ZAMSIF will also support participatory exercises at district and community level to facilitate localised definitions of poverty and poverty reduction strategies
3. District Development & Poverty Reduction Strategy will include combine the above and provide a broad statement of strategic development objectives based on problems identified in District Situation Analysis & Poverty Assessment. Target Groups/Areas for Poverty Reduction will be identified as well as sector and area objectives.
4. Annual Investment Plan based on District Development Strategy, will plan projects according to available resources. It will take into account proposed and approved / ongoing projects by sector/ funding source/ cost / location. These will be mapped if possible.

ZAMSIF will also support District Projects for those districts that qualify. DIF projects should meet the following criteria:

• DIF projects will benefit more than one community and are likely to benefit the total district population;
• DIF projects must be simple enough for the district to manage, implement and complete in one year;
• DIF projects must be financially sustainable and viable and provision for operations and maintenance assured;
• DIF project will have been identified as a priority investment in the district plan;
• DIF project will complement the district poverty reduction strategy with defined priority beneficiary group and involve beneficiaries in identification, implementation and subsequent management;
• DIF project will have no negative impact on the environment; and
• Council will have committed itself to providing about 15% of the project costs, which may be in form of technical assistance, local materials and/or funds.

Some examples of DIF projects are: district markets; expansions and improvements to district hospital; water and sanitation for secondary schools, water and sanitation for district or sub district centres; non community roads; public sanitation; shelters for bus stations.

DIF Capacity Building Component

The DIF component of ZAMSIF will have a large capacity building programme which will include the actual training, training of trainers of district staff so that they are able to train communities; procurement of equipment – computers, flip chart boards etc; sitting allowances for provincial assessment teams; field expenses for district staff; and relevant recurrent costs of stationary, fuel, etc. The programme will be initiated by: