SUDAN MULTI DONOR TRUST FUND FOR SOUTHERN SUDAN FINAL PROJECT PROPOSAL FOR A PROPOSED GRANT IN THE AMOUNT OF US $ 27.25

Transcription

1 30 November 2005 SUDAN MULTI DONOR TRUST FUND FOR SOUTHERN SUDAN FINAL PROJECT PROPOSAL FOR A PROPOSED GRANT IN THE AMOUNT OF US $ TO THE GOVERNMENT OF SOUTHERN SUDAN FOR PROPOSED RAPID IMPACT EMERGENCY PROJECT Sudan Country Management Unit Africa Region World Bank 1

2 COVER SHEET Applicant: Brief Description: Project Development Objective: Sectors: Location: Total Project Cost: Implementing Agency (ies) Implementing Period for the Project Contact for further information The Government of Southern Sudan (GoSS) Rapid Impact Emergency Project will address emergency needs of the Government of Southern Sudan in the health, education, and public service sectors through (i) the provision of pharmaceuticals for health facilities, textbooks for primary students, equipment for the President s, Vice President s, 22 Ministries and the Governor s Office in 10 States, and (ii) selection of procurement and accounting service providers to assist GoSS in discharging its fiduciary responsibilities. The project development objectives are to (i) restore livelihoods resulting from the long term civil unrest: (ii) restore basic services to the affected population: and (iii) jumpstart the recovery process in Southern Sudan through the emergency provision of goods and services to improve government functionality. Health, Education, Public Services Southern Sudan. Total US$ million of which MDTF US$20.0 million and GoSS US$ 7.25 million equivalent. GoSS will be the recipient of the Grant Agreement. GoSS will contract with UN Agencies as procurement agents to procure/supply and distribution of pharmaceuticals, textbooks, equipment for the ten states and government office buildings and renovate governor s offices in the ten states. December 2005 to June 2006 for all components except for Component 3 (procurement agent) that will be implemented over two years. Arthur Akuein Chol Minister of Finance Government of Southern Sudan Juba Satellite Phone: Mobile:

3 TABLE OF CONTENTS Page Number Cover Sheet 2 I. Strategic Context and Rationale 5 Key Development Issues 5 Rationale for MDTF Involvement 6 II. Project Description: 6 Project Development Objectives and Key Project Indicators Project Components 6 (i) Supply and Distribution of Pharmaceuticals and 6 Medical Consumables (ii) Supply and Distribution of Textbooks and 7 Student and Teacher Kits 7 (iii) Procurement Agent 7 (iv) Project Accounting Agent 7 (v) Support to Ten States 7 (vi) Furnish and Equip GoSS Offices 8 Project Costs by Component 8 III. Implementation 8 Institutional and Implementation Arrangements 8 Procurement Arrangements 10 Financial Management Arrangements 10 Monitoring and Reporting 11 Sustainability and Critical Risks 11 IV. Social Issues 11 V. Environmental Issues 12 ANNEXS 1. Detailed Implementation Plan Project Costs Initial Implementation Plan Initial Procurement Plan Detailed Financial Management Arrangements Economic and Financial Analysis Environment and Social Management Framework Letter of Endorsement List of Ministries List of Approved Initial Project Proposals Component 1 Supply and Distribution of Pharmaceuticals 37 Reference Documents 12. Component 2 Supply and Distribution of Textbooks and Kits 43 Reference Documents 13. Component 3 Procurement Agent 48 3

4 Terms of Reference 14. Component 4 Project Accounting Agent - Terms of Reference Components 6 and 7 Support to 10 States and Furnish and Equip GoSS 55 Reference Documents 4

5 I. STRATEGIC CONTEXT AND RATIONALE: Introduction: 1. On January 09, 2005, a Comprehensive Peace Agreement (CPA) was signed between the Government of Sudan and the Sudan People s Liberation Movement (SPLM). The civil war has had a devastating toll in terms of loss of human life, displacement, and destruction of infrastructure and social fabric. Now the people s expectations for better lives are high and there is an historic opportunity to overcome the devastation of war and the neglect of human development in policies and programs, and address on this basis the potential for renewed tensions through out the Country. This opportunity comes with substantial domestically-generated oil revenues as well as the expectation of increased donor flows and international support. 2. At the request of the Government of Sudan and the SPLM, the World Bank and the United Nations carried out a Joint Needs Assessment (Joint Assessment Mission (JAM) Report - Volumes I, II and III dated March 18, 2005). The JAM has led to a Framework for Sustained Peace Development and Poverty Eradication and identified many challenges that required support by domestic efforts and resources of development partners. 3. The overall financing needs amounted to US$ 7.9 billion (US$ 4.3 billion for the North and US$ 3.6 billion for the South). Two Multi Donor Trust Funds (MDTF) were established, one each to support the reconstruction, capacity building, and policy framework activities for the Government of National Unity (GoNU) and Government of Southern Sudan (GoSS). A Technical Secretariat, managed by the World Bank, has been established to provide technical support and assume fiduciary responsibilities for each MDTF. 4. The Government of Southern Sudan, consisting of 22 Ministries (see Annex 9), was formed on October 23, Parliament has been elected and is in session. The 2005 budget for GoSS has been prepared but has yet to be presented to Parliament. As a result, the GoSS counterpart funds may not be available and are prepared to fund 100% to fund this emergency package on an exceptional basis. However the Minister of Finance has committed to contribute up to US$10.0 in counterpart funds to support the project. GoSS contribution is documented in the MOF s letter dated 9 November (see Attachment 8). 5. In the short term for GoSS, the majority of the resources are required for health, education, rural development, transportation infrastructure, private sector development, capacity building of civil servants, small farmers, etc. 6. The project components have been identified with the full involvement of representatives of GoSS, UN Agencies, selected NGO s and other key development partners. Components include: supply and distribution of pharmaceuticals, medical consumables, and text books, contracting procurement and accounting capacity to assist GoSS discharge its fiduciary responsibility, providing communication and connectivity equipment to offices of the President, Vice President, 22 Ministries and 10 States of Southern Sudan. Each component of this project will be implemented as an emergency operation and will be implemented in parallel with the other project components. (a) Key Development Issues: 7. The strategic objective of the Government of Southern Sudan (GoSS) for this emergency project is to restore basic education and health needs and functionality of government. 8. The strategic objective derives from severe isolation, shortage of supplies especially pharmaceuticals, text books, and office and communication equipment required to make the GoSS functional in Juba and in the 10 States. 5

6 (b) Rationale for MDTF Involvement: 9. The MDTF for the South was established to help finance the reconstruction and development of Southern Sudan. It is a collaborative framework which brings together several of Sudan s key development partners and provides a one stop point of contact and information on reconstruction and development effort for those of its partners providing assistance through the MDTF framework. It is therefore an efficient way for Sudan to ensure good coordination of the development assistance it receives. Also, the all the components of project with the exception of the accounting and auditing components are included in the approved Initial Project Proposals (IPPs) that have been approved by the Interim Oversight Committee. See Annex 10 for a list of approved IPPs. II. PROJECT DESCRIPTION: (a) Project Development Objectives and Key Performance Indicators: 10. The project development objectives are to (i) restore livelihoods resulting from the long term civil unrest: (ii) ensure adequate supply of pharmaceuticals and medical supplies for existing basic health services for the population of Southern Sudan, particularly women and children: and (iii) jumpstart the recovery process in Southern Sudan through the emergency provision of goods and services to improve government functionality. 11. At the completion of the project, it is expected that there would be: (i) improved student-textbook ratios, (ii) reduced stock outs of pharmaceuticals and medical supplies, iii) connectivity between 10 states and National Government Offices in Juba, and (iv) furnished and equipped ministries. (b) Project Components; 12. The proposed project will have six (6) components: Each component will be implemented in parallel. With the exception of Components 3 (Procurement Agent), the project is expected to be completed on or before by June, 30, The project closing date will be March 31, 2008, however every effort will be made to complete the procurement, distribution and installation of Components 1, 2, 5, and 6 by June 30, Component 1: Supply and Distribution of Pharmaceuticals and Medical Consumables: US$ 6.1 million This component will support the procurement and distribution of 10 months supply of pharmaceuticals, vaccines, and medical consumables for the 15 hospitals, 117 health centers, and 280 health posts in Southern Sudan and a cold room for the Juba Central Pharmaceutical Warehouse. The requirements for the first 4 months will be supplied in the form of medical kits and air freighted to Juba for distribution. Separate proposals to air freight and to send by sea/land the remaining 6 months of pharmaceuticals, vaccines, and medical consumables to Juba may be solicited. Justification: There is an acute shortage of pharmaceuticals and medical supplies throughout Southern Sudan. The central pharmaceutical warehouse located in Juba does not have a cold room to adequately store vaccines and temperature sensitive medications. The Emergency Package responds to several specific and urgent issues in the sector. First, given the integration of the health systems in Juba, Malakal, Wau and other towns, the GoSS Ministry of Health is faced with an acute shortage of drugs and medical supplies as well as the need to strengthen pharmaceutical management systems. Several hospitals, directly managed by the GoSS Ministry of Health in other areas, are also in need of immediate support. In addition, a shortfall in drug supply for services supported by the USAID Health development program may have a significant impact on the overall system development effort. 6

7 Component 2: Supply & Distribution of Textbooks & Student and Teacher Kits: US$ 7.5 million This component will support the procurement and distribution of approximately 155,000 sets of Arabic Language textbooks, 8,000 teacher s manuals and 15,000 student kits (UNICEF will provide separate funding for an additional 10,000 student kits) and 29,000 teacher s kits for grades P1 P4. Originally the project was going to fund English Language Textbooks but this requirement will be covered by UNICEF under separate funding. The school kits have been developed by UNICEF. Justification: Although there was a delivery of textbooks to a number of schools in Southern Sudan in 2003, the availability of textbooks is still very insufficient for grades P1 through P4 due to the prolonged war and the returning IDPs. The next school year starts in March 2006 and therefore it is critical that the textbooks, and teacher s manuals, in Arabic Language, teacher and student kits under go emergency procurement so they can be available for students of the school year. Even though the Minister of Education agrees that the eventual goal is to provide an English curriculum, it was agreed that Arabic Language textbooks would be supplied to primary schools to support education in the Arabic speaking communities and the returning IDP from Northern Sudan during the transition from the Arabic to English curriculum is completed. Component 3: Procurement Agent: US$ 3.0 million This component will support the contracting (mobilization, fees, reimbursables, etc.) of a consulting firm experienced in public procurement to work with the GoSS (MOF) to establish a Procurement Division, and review and revise, where necessary, the procurement regulations, policies and procedures governing GoSS procurement activities and to carry out the day to day procurement activities of GoSS for a period of two years. Annex 10 contains the draft TORs for the assignment. Justification: The MOF needs urgent assistance in establishing the capacity of GoSS in the area of procurement. GoSS does not currently have the capacity to carry out the day-to-day procurement activities nor develop the international commercially compliant procurement procedures necessary to ensure transparency and accountability in the procurement process. Component 4: Project Accounting Firm: US$ 0.5 million This component will support the sole source contracting (mobilization, fees, reimbursables, etc.) of a consulting firm (KPMG) experienced in project accounting to work with the GoSS (MOFEP) to establish the Project Disbursement Unit for a period of 6 12 months until the long term project accounting agent is hired. This Unit will be responsible for preparing and issuing the Project Implementation Guidelines and accounting for all projects related expenditures that are either funded out of the MDTF or pooled with GOSS for a period of two years. It will take responsibility for providing fiduciary assurance to GoSS and MDTF regarding the use of funds during the period of the contract. Annex 11 contains the draft TORs for the assignment. Justification: Just emerging from a post conflict situation, the accounting capacity in MOFEP needs substantial strengthening. Until that capacity is built up, for an interim period of six to nine months, there is need to recruit an international accounting firm to provide accounting services as per international accounting standards and to provide fiduciary assurance until the long term project accounting agent is employed. Recruitment of this firm is critical as there is strong pipeline of projects funded by MDTF or pooled with GOSS that need to disburse in the near future. Component 5: Support to the Ten States: US$ 3.5 million This component will support the establishment of the governor s office through basic renovations of the governor s offices, providing basic office equipment, (computers and related equipment, copy machines, and a v-sat equipment). 7

8 Justification: Emergency support is necessary to help with effective start-up of the state administrations. This is to ensure that the new state Governors and their administrations have the ability to communicate and interact with the central ministries in Juba and are supplied with the basic requirements to become functional. Component 6: Furnish and Equip GoSS Offices: US$ 5.5 million This component will support the initial procurement and installation of computers and related equipment, photocopiers, scanners, communication, including V-sat equipment, generators, vehicles, furniture to functionalize the GoSS offices. The initial procurement will supply a basic package of furniture and equipment to enable approximately 90 Director level officials and 180 Deputy Directors in the offices of the President, Vice-President, and the 22 Ministries to become functional and communicate with the district governors as well as other ministries. Justification: The Government is not able to function efficiently due to lack of furniture, computer and related equipment, and communications. (c) Project Costs By Components: The financial envelope for the project is US$ million. This is based on US$20.0 million being available from MDTF and $ 7.25 million in counterpart funds from GoSS. Eligible expenditures under the project will be financed 100% from project proceeds. The GoSS will fund the 50% of the cost of distribution and delivery, vehicles, consultancy services, civil works and 100% of the UN Agency fees. To simplify the disbursement procedures the project will fund 73% of each project component. Table 1: Project Costs and Financing (US$ millions) For Grant Purposes #/ Component Description Disbursements 2006 Total % 2008 age For Grant Purposes MDTF GOSS MDTF GoSS 1. Supply and Distribution of US$4.6 m US$1.50 m US$6.1 m 73% US$4.5 m US$ 1.6 m Pharmaceuticals and Medical Consumables 2. Supply and Printing of US$6.4 m US$1.10 m US$7.5 m 73% US$5.5 m US$ 2.0 m Textbooks and Supply of School Kits 3. Procurement Agent US$1.5 m US$1.50 m US$3.0 m 73% US$2.2 m US$ 0.8 m 4. Project Accounting Services US$0.25 m US$0.25 m US$0.5 m 73% US$0.4 m US$ 0.1 m 5. Support for the 10 States US$2.5 m US$1.00 m US$3.5 m 73% US$2.65 m US$ 0.85 m 6. Furnish and Equip GOSS offices US$4.0 m US$1.50 m US$5.5 m 73% US$4.0 m US$ 1.5 m Contingency US$0.75 m US$0.40 m US$1.15 m 73% US$ 0.75 m US$ 0.4 m Total US$20.0 m US$7.25 m US$27.25 m US$ 20.0 m US$ 7.25 m III. Implementation (a) Institutional and Implementation Arrangement 13. Project Implementation Period: The project will be implemented over the period of December 2005 through June 2006, with the exception of Components 3 (procurement agent) that will be implemented over two years. 14. Project Organization and Management: 8

9 The Government of Southern Sudan will be the recipient of the Grant and will have overall responsibility to implement the program. The Policy and Planning Unit within the Ministry of Finance will be responsible for the day-to-day implementation of the project. A project accounting firm (likely to be KPMG) is being recruited as an interim arrangement, effective December 2005, to provide accountancy services. A monitoring agent, Price Waterhouse Coopers, has been selected by the MDTF to monitor and report on the fiduciary aspects of the project. UN Agencies will be contracted to procure and distribute pharmaceuticals and educational materials and office and communication equipment for GoSS offices and governors offices in the 10 states. In addition, a contractor such as UNOPS could be contracted to complete the design, prepare the bidding documents, evaluate offers, award the contract(s) and supervise the renovation required to upgrade the governor s offices in the ten states. The Ministry of Finance will be responsible for preparation, evaluation, and awarding the contract for the Procurement Agent. An organization chart of the project components is as follows: Ministry of Finance Policy and Planning Unit Consulting Services Procurement Management Firm and Interim Project Accountant Agent Civil Works: Renovation of Governors' Offices in 10 States Supplies: Procurement and Distribution of Textbooks, Kits and Pharmaceuticals 15. Interim Implementation Arrangements (if any) - During the initial stages of implementation, the Procurement Specialist (PS), currently being funded under the LICUS program and acceptable to the Bank, will, under close supervision of the Bank, carry out contracting of the UN Agencies to purchase and distribute textbooks, pharmaceuticals, and equipment for Government offices in Juba and the Ten States. In addition, the PS be responsible for the recruitment of the Procurement Agent via QCBS and the soul source recruitment of an interim Project Accounting Agent. The Interim Project Accounting Agent (KPMG) will be contracted for and initial period of six months with an option for an additional six month via sole source selection to be responsible for the project financial transactions and to assist the Government establish a Project Disbursement Unit. During the period of the contract the Government will recruit a long term Project Accounting Agent to be responsible for all MDTF funded project financial transaction. 16. Strategic Oversight: To provide overall strategic guidance and inter-ministerial and donor coordination MDTF has established a Project Task Force (PTF), headed by the Minister of Finance with representatives of the Technical Secretariat, UN OCHA, and representatives of all concerned implementing ministries/agencies. The PTF will approve the work plan and budgets, review audit reports and quarterly progress reports. In addition, the PTF will provide coordination in respect to the roles and funding of various participating donors and government counterpart funding, resolve inter-agency issues, conduct monthly reviews of project progress and fund utilization. 17. Role of Other Partners: The Project will collaborate with government and other donors such as USAID, UNMIS, UNICEF, WHO, and UNDP who are not putting their assistance through the MDTF but are 9

10 supporting the project, in kind or through parallel financing. GoSS will support the upgrading of the power generators needed to power the Central Pharmaceutical Warehouse, USAID will support upgrading and renovation of the water system in Juba and UNMIS has agreed to provide equipment and Labor to support the road component of the Juba Renovation component. The project will support UNICEF s textbook and WHO s, UNICEF s measles vaccination and pharmaceutical supply and distribution programs as well as UNDP s Rule of Law Program. In addition, the Governments of Norway and The Netherlands have expressed interest in supporting the renovation of Juba and are reviewing possible areas of support. (b) Procurement Arrangements: 18. Detailed procurement procedures are described in Annex I. Procurement under the project will be implemented by GOSS based on fast-track procurement procedures consistent with Bank Guidelines. Whenever a UN agency will be employed. Procurement practices by the Agencies will be used in accordance to section 3.9 of.bank Procurement Guidelines. The project will have to procure urgently needed goods such as pharmaceutical products and vaccines, textbooks and office equipment in addition to rehabilitation works and recruitment of a procurement agent. Given the scarce management and procurement capacity of GOSS, procurement will be carried out through the use of UN agencies particularly active in Southern Sudan and capable to deliver promptly through their efficient procurement practices and available stock. Once capacity is established and a procurement agent will be recruited, procurement procedures will follow conventional Bank procurement procedures. Under Component 1 pharmaceuticals, vaccines and consumables will be purchased through a UN Agency at competitive commercial prices that has extensive experience in delivering similar products in Southern Sudan and can count on a well established distribution and health units network. Most of the vaccines and at least 25% of pharmaceutical will be delivered by airfreight to cover most of the territory. Specialized NGOs may also be considered. in case they would have a comparative advantage on other sources of supply. The overall value of the package is about US$.6.1 million. Under Component 2, UNICEF has acquired the IP rights to the manuscript of the required text books and is uniquely suited to distribute them at very competitive prices. Printing of textbooks in English language will be carried out by UNICEF under separate funding. Textbooks in Arabic language will be printed entirely in North Sudan per established practice and exclusive copyright by the printing industry. This may be the most efficient way to deliver the textbooks to school located in Arabic speaking areas at the same time as those in other areas of Southern Sudan. Currently there are no building contractors in Juba to carry out repairs and renovations. Parallel rehabilitation works for the emergency transport project will start later in May through the use of contractors from neighboring countries. One contractor that could be used for this task is the UN agency, UNOPS, which has offices and workshops in Juba. GoSS will need to contract UNOPS directly for this task. It will have to satisfy itself that UNOPS, Sudan has the ability to deliver and has robust fiduciary arrangements. In this respect it will have noted the fiduciary concerns expressed by UN auditors on the financial statements of UNOPS. Finally, under Components 3, a Procurement Agent will be recruited through international competition and selection based on quality and cost (QCBS). Component 4, the interim Project Accounting Agent, will be sole sourced in accordance to clause 3.10 of the guidelines. (c) Financial Management Arrangements: 10

11 19. This is a high risk high reward operation in a weak fiduciary environment. A detailed financial management assessment is at Annex 5. The fiduciary framework being put in place to reduce the risk to an acceptable level for both GoSS and the MDTF is the following: A Monitoring Agent (MA) for the MDTF is in the process of being appointed. The contracting process is likely to be completed shortly. The MA will monitor actual expenditures to ensure that funds are being utilized for the purpose intended. The MA will ensure that fiduciary standards are being complied with, and report on all cases of non compliance. An Interim Project Accounting Agent (PAA) is in the process of being appointed, and will need to be in place before effectiveness. As an interim arrangement, this is being sole sourced, while awaiting an international competitive bidding process to get underway. The PAA will be responsible for ensuring that reliable and robust accounting systems are in place to ensure proper accounting and reporting of transactions as per international accounting standards. The PAA will take fiduciary responsibility for release of funds. A Procurement Agent (PA) to ensure that procurement is conducted in a transparent and accountable manner, and as per MDTF requirements. 20. There will be a Project Account (USD) in Nairobi where MDTF funds will disburse. GoSS contributions will also disburse into this account and be pooled. Funds will be transferred from this account to a Project Account (Local Currency) account in Juba to meet local expenditures as required. There will be complete pooling of funds, and a single set of fiduciary standards. The financial management conditions of effectiveness are listed in Annex Disbursements will be on the basis of Statements of Expenditure (SoE s) and Financial Management Reports will be produced on a quarterly basis. Details of the monthly and quarterly reports required are at Annex 5. The project will require intensive supervision, at least on a quarterly basis. 22. An independent audit firm acceptable to the MDTF, on ToR s acceptable to MDTF will audit this project. The audit report will be produced within six months of the end of the financial year. Funding for the audit requirements for this project will be funded out of the funds provided under Contingency component. (d) Monitoring and Reporting; 23. The Implementing Agencies will prepare periodic Financial Management Reports which inter alia cover outputs. Implementation progress, financial statements, as well as results against monitoring indicators. The project will make use of existing data sources, supplemented by regular routine project data collection. Monitoring will focus on positive changes in key indicators such as: student-textbook ratio, adequate supply of pharmaceuticals staff/computer connectivity ratio Indicator: for example: % of health facilities with stock-out of sentinel drugs (antibiotics, antimalarials, vaccines) in the previous 30 days. (e) Sustainability and Critical Risks: There are a number of potential risks that are common to all sectors of the government. These may include the following: Delay in the Implementation of the Peace Process 11

12 Resurgence of civil unrest Longer lead time required for establishing Government of Southern Sudan and the emergent Ministries. Delay in approving 2005 and 2006 budgets for GoSS which may reduce the amount of counterpart funding available. Lack of experience in program implementation. Poor infrastructure roads, transport, communication, etc Movement of the Government to Juba and attendant diversion of managerial resources Difficulties in identifying qualified external technical assistance. IV. SOCIAL ISSUES 24. There are a number of post conflict issues such as a lack of government institutions, procedures, legally defined rights, continuing conflicts in some areas, grievances arising from perceived lack of inclusiveness and equity that have the potential to undermine project activities and affect the distribution of goods procured under this project to the end users. Social risks largely arising from differential access to benefits, traditional rights and entitlements, adequacy of targeting mechanisms, and varying public perception of benefits will be addressed through continuous monitoring of agreed social indicators. V. ENVIRONMENTAL ISSUES 25. The components of the proposed project likely to generate any environmental impacts include: supply and disposal of pharmaceuticals and medical consumables and support to infrastructure of 10 States (renovation of office buildings). Based upon available information, the impacts are likely to be minimal, local in extent and readily assessed, mitigated and managed. Accordingly, the project is allocated a B impact category. Purchase of medical supplies and their disposal will in accordance with WHO guidelines and close monitoring by WHO specialists and supported by the development of a comprehensive program for medical waste disposal under the forthcoming Bank-funded health care project to be appraised in Handling of any significant wastes during building renovation will need appropriate disposal of waste materials and the protection of the workforce in the event of asbestos removal or that of other toxic materials. A protocol to address possible asbestos removal will be applied during implementation. Only positive social impacts are expected to be generated by project components. 26. Given the emergency conditions of the project, the most tractable way of achieving sound environmental management is through the adoption of the following actions: (a) adoption of the asbestos protocol within 6 months of effectiveness or prior to commencement of work involving removal of asbestoscontaining material (typically concrete roofing, but sometimes partitions and insulation), whichever comes first; and; and, (b) immediate application of WHO guidelines and appropriate scheduling of the waste management plan to be developed under the Bank-funded health care project 12

13 Annex 1 Detailed Implementation Arrangements The implementation arrangements for executing the Rapid Impact Emergency Project have been designed to cater to the following key requirements of the proposed project. Accelerated implementation which in turn would require i. A simple single line project coordination and oversight institutional arrangement. ii. Simple decision making procedures and simple work planning and procurement procedures to avoid delays. iii. Rapid contracting of UN Agencies to procure and implement the all components with the exception of contracting the procurement agent which will be carried out by the GoSS Procurement advisor, who is acceptable to the Bank. Building partnerships i. Implementation arrangements are designed to promote strong linkages with participating donors: and development arrangements allowing shared implementation of various project components. ii. Sharing best practice with partners: Institutional and Implementation Arrangements Project implementation period: The project will be implemented over the period December 2005 through March , a period of 27 months. However, the procurement activities under Components 1, 2, 4, 5 and 6 should be completed by June 30, Project organization and Management: The GoSS will be the recipient of the Grant and would be responsible for the overall implementation of the project. A project accounting firm will be responsible for providing accountancy services and provide fiduciary assurance regarding use of funds. The financial management arrangements are described in greater detail in Annex 5 below. GoSS would be responsible for contracting the UN Agencies to implement various components of the project. Mr. Moses Mabior, MOF Policy and Planning Unit, has been appointed Project Manager and will responsible for the day to day implementation of the project activities. The table below shows the various components and the proposed implementation arrangements. Table 2: Project Component and Implementing Agency Project Component Implementation Agencies Estimated Value (mm) Procurement of Pharmaceuticals UNICEFs, MOH, US$ 6.1 And Medical Consumables Procurement of Textbooks UNICEF, MOE US$ 7.5 Procurement Agent MOFEP US$ 3.0 Project Accounting Firm MOFEP US$ 0.5 Support to 10 States UN Agency, GoSS US$ 3.5 Furnish and Equip GOSS Offices UN Agency, GoSS US$ 5.5 Contingency US$

14 Implementation Arrangements for each component: Component 1: Procurement of Pharmaceuticals and Medical Consumables The procurement will be executed by an experienced UN Agency in collaboration with the procurement specialist of GOSS and the MOH. The UN s standard procedures and bidding documents for medical consumables and pharmaceuticals will be followed/used. These procedures are based on international competition and are acceptable to the Bank under section 3.9 of the Guidelines: Procurement Under IBRD Loans and Credits dated May 2004, hereinafter referred to as the Guidelines. The goods will be packaged into three main lots, (i) medical kits, (ii) medical consumables, and (iii) vaccines (other than for the UNICEF measles campaigns). The list of pharmaceuticals has been finalized and is being categorized by lots and by location. Bidders will be requested to price the following delivery options. (i) 25% of each item delivered by air freight and the rest by sea and ground; and (ii) 100% of each item delivered by air freight. Other combinations will also be explored, in coordination with the GoSS and MDTF procurement specialists. The MOH will explore using UN air cargo (WFP) to deliver the goods from Juba to the regional warehouses. The pharmaceuticals will be shipped to Juba for further distribution to five regional warehouses for distribution to the counties. The Agency will use its existing delivery mechanisms and monitoring systems to ensure that the pharmaceuticals are delivered to the end using health facility. Component 2: Supply and Distribution of Textbooks and Teachers and Student Kits: During appraisal it was determined that UNICEF will fund the printing and distribution of approximately 4 million English Language textbooks for grades P1 P4 outside of this project. As a result the project will support the procurement of 155,000 sets of textbooks and 7,750 teacher s manuals in the Arabic language. The Arabic version of the textbooks and teacher s manuals will be procured directly from the Tarbia Printing Press, the only authorized entity to print and distribute the basic and secondary Arabic Language school textbooks in the country (see Annex 12). UNICEF has contracted and will distribute 10,000 out of 20,945 student kits required to complement its provision of English Language textbooks. The project will provide 10,945 student kits needed to complement the English textbooks being purchased by UNICEF plus 3,875 kits to complement Arabic Language textbooks funded under this project. Each student kit contains supplies for 80 students. In addition, 28,695 teacher s kits will be provided under this project. In addition to the English language textbooks, UNICEF will be contracted to procure and distribute the Arabic Language textbooks and teacher s manuals. UNICEF will also procure and distribute the student and teacher kits to all of the schools. UNICEF may work with the Monitoring Agent to develop a monitoring system to ensure that the books and kits are delivered to their final destination. The titles of the Arabic Language text books to be printed and the quantities to be delivered to each school are being finalized. The textbooks and kits will be delivered to Juba, Malakal and Wau for further distribution. UNICEF will coordinate with Ministry of Education to develop a monitorable delivery plan/schedule consistent with start of the scholastic year. In addition to using land transport, UN air cargo (WFP/UNOPS or other UN Agency) and barge may have to be used to deliver the books and supplies from Khartoum and goods from delivery points to the regional warehouses and remote schools. An NGO or UN Agency may be contracted to deliver the text books, teacher s manuals and school kits to each school. The organization will receive at the delivery point and package the books and kits by school for each state. 14

15 The textbook distribution system in each State will be assessed by UNICEF and the NGO/UN Agency and where possible, the State will be responsible for distribution of the text books. Otherwise, separate contracts to distribute the books and kits from delivery points to the regional warehouses and to the school will be issued. Component 3: Procurement Agent: A firm to manage GoSS procurement will be recruited though Bank s Consultants Guidelines using the Quality Cost Based Selection (QCBS) procedures. The procurement specialist recruited under the LICUS program and acceptable to the Bank will, under close supervision of the Bank, lead the procurement process for the GOSS. Given the relevance of the assignment for future procurement operations in Southern Sudan, the assignment will be widely advertised and will be subject to Bank prior review at all recruitment stages. Once established, the firm selected to manage GoSS Procurement will coordinate and carry out all procurement activities under this and other MDTF financed projects, thus reducing reliance upon the UN agencies and extending procurement to the private sector. Component 4: Project Accounting Firm: In order to meet MDTF and GOSS immediate needs for project accounting during the interim period of six to twelve months, a project accounting firm will be recruited on a sole source basis. GOSS has proposed that this be KPMG that is currently the financial management agent for the UNICEF Capacity Building Trust Fund (CBTF) that has been meeting urgent expenditures of GOSS for over a year. The sole selection recruitment process will be in line with Bank procurement guidelines. The firm will be recruited for a period of six months with an option to extend the contract for a further period of six months if considered necessary. The six month period should normally be sufficient to recruit a Project Accounting firm through Bank s Consultants Guidelines using the Quality Cost Based Selection (QCBS) procedures for a period of two years. The long term Project Accounting firm will be funded under a forthcoming project that is under development. Component 5: Support to the Ten States: A UN Agency will be contracted to procure, deliver and make operational all office and communication equipment for each of the 10 states. Equipment will be installed only after locations have been determined and rehabilitation works completed. GoSS will fund and award contracts on the basis of the UN s small works procedures which have been reviewed by the Bank and found consistent with similar procedures under Bank financed projects. The works are simple in nature and have an average estimated cost of US$ 75,000 for individual contracts. The UN Agency will work with UNDP to identify executive training needs as well as options for suppliers. The equipment will be procured in parallel to the equipment described under Component 5. Component 6: Furnish and Equip GoSS Government Offices in Juba Experienced UN agencies such as UNOPS may be contracted to procure, deliver and set up the furniture, computer and related equipment, copy and fax machines required to furnish and equip the Government Office in Juba and in the ten states (Component 4). The equipment will be procured via the UN s Competitive Bidding Procedures which are acceptable to the Bank in accordance to section 3.9 of Guidelines. Most of the equipment will be delivered to Juba for further distribution to its final destination. Strategic oversight: To provide overall strategic guidance and inter-ministerial and donor coordination MDTF has established a Project Task Force, headed by the Minister of Finance, consisting of representatives of the Technical Secretariat and UN OCHA. The TF consults with all concerned implementing ministries/agencies to ensure quality of the project/program. The TF will approve the work plan and budgets, review audit reports and 15

16 quarterly progress reports. In addition the TF will provide coordination in respect to the roles and funding of various participating donors and government counterpart funding, resolve inter-agency issues, conduct monthly reviews of project progress and fund utilization. Role of UN Agencies: As indicated in Table 2 above, the project will be implemented in partnership with UN Agencies. While GoSS will take the lead role and be responsible for the implementation of the overall program, UNICEF will be responsible for implementing textbook component and may implement the pharmaceutical component. Other UN Agencies will be responsible for implementing the equipment for the ten states and government offices. GoSS will be responsible to contract the procurement agent.. 16

17 Annex 2 Project Costs The financing envelope for the project is US$ million. This is based on US$ 20.0 million being available from MDTF and US$ 7.25 million from the GoSS. With the exception of Components 3 and 4 (Procurement Agent and Project Accounting Agent) which will be implemented over a two year period, the remaining project components are expected to be fully disbursed by June 30, The total funds available from the project will be used to finance 100 percent of eligible expenditures. Table 1: Project Costs and Financing (US$ millions) #/ Component Description Disbursements 2006 Total % 2008 age For Grant Purposes MDTF GOSS MDTF GoSS 1. Supply and Distribution of US$4.6 m US$1.50 m US$6.1 m 73% US$4.5 m US$ 1.6 m Pharmaceuticals and Medical Consumables 2. Supply and Printing of US$6.4 m US$1.10 m US$7.5 m 73% US$5.5 m US$ 2.0 m Textbooks and Supply of School Kits 3. Procurement Agent US$1.5 m US$1.50 m US$3.0 m 73% US$2.2 m US$ 0.8 m 4. Project Accounting Services US$0.25 m US$0.25 m US$0.5 m 73% US$0.4 m US$ 0.1 m 5. Support for the 10 States US$2.5 m US$1.00 m US$3.5 m 73% US$2.65 m US$ 0.85 m 6. Furnish and Equip GOSS offices US$4.0 m US$1.50 m US$5.5 m 73% US$4.0 m US$ 1.5 m Contingency US$0.75 m US$0.40 m US$1.15 m 73% US$ 0.75 m US$ 0.4 m Total US$20.0 m US$7.25 m US$27.25 m US$ 20.0 m US$ 7.25 m Table 3: Matrix of Project Funding Component Goods Civil Works Consulting Services Supply and Distribution of Pharmaceuticals and Medical Consumables Supply and Distribution of Text Books/Teacher and Student Kits Procurement Agent 3.0 Project Accounting Firm 0.5 Support to Ten States Furnish and Equip GoSS office Total

18 Annex 3 Initial Implementation Plan The components of the project will be implemented in parallel over a period of 7 months with the exception of the Procurement Agent Component which will be implemented over two years. An Interim Project Accounting Agent (KPMG) will be contracted for and initial period of six months with an option for an additional six month via sole source selection to be responsible for the project financial transactions and to assist the Government establish a Project Disbursement Unit. During the period of the contract the Government will recruit a long term Project Accounting Agent to be responsible for all MDTF funded project financial transactions. #/Component Description Supply and Distribution of Pharmaceuticals and Medical Consumables Contract UN Agency Procure and Distribute Pharmaceuticals Finalize Quantities and contract document for 1st 25% Issue PO for first 25% of Pharm Receive and start Distribution Complete Distribution of first 25% Finalize Qtys of bulk supply of 75% Issue Contract for 75% (Bulk) Receive bulk in Juba Package and start distribution Complete Distribution of Bulk Medicines 2. Supply and Distribution of Textbooks and Teacher and Student Kits Contract UN Agency to Implement Finalize Qty of Arabic Books and Contract Document Sign Contract for Arabic Books Receive Arabic Language Books and Start Distrib. Contract NGO/Firm(s) to Distribute Complete Distribution of Arabic Books Student Kits Finalize Quantities of Student Kits and Amendment Issue amendment to contract Contract NGO/Firm(s) to Distribute Receive Student Kits and start Distribution Complete Distribution of Student Kits Teachers Kits Finalize Quantities and Bidding Doc for Teacher's kits Open and Evaluate Bids Award Contract Contract NGO/Firm(s) to Distribute Receive Teacher Kits and start Distribution Complete Distribution of Teacher Kits 3. Procurement Management Consultant Finalize TOR and Issue EOI Evaluate Proposals and Select Short List Issue RFP Open and Evaluate Technical Proposals Open and Evaluate Financial Proeposals Award Contract Firm Mobilizes Implements TOR 4. Interim Project Accountant Agent Finalize TOR and Contract Documents Conduct Negotiations with KPMG Sign Contract Firm Mobilizes Implements TOR 4. Support for the 10 States Renovations Complete assessment of civil works Contract UN Agency to Complete Design and Implement Renovations. Complete Bidding Docs (BOQ) Solicit Proposals Evaluat IFP and Award Contracts Complete Renovations Equipment Finalize equipment list and issue ITB Open and Evaluate Bids Award Contract Receive Equipment and Distribute Complete Installation of Equipment 5. Furnish and Equip GOSS offices Finalize equipment list and issue ITB Open and Evaluate Bids Award Contract Receive Equipment and Distribute Complete Installation of Equipment Initial Implementation Plan for Rapid Impact Emergency Project 18

19 Annex 4 Initial Procurement Plan Annex 4 Procurement Arrangements Procurement Arrangements: Procurements for the project will be carried out in accordance with the World Bank s Guidelines: Procurement Under IBRD Loans and IDA Credits dated May 2004; and Guidelines: Selection and Employment of Consultants by World Bank Borrowers dated May 2004, and the provisions stipulated in the Grant Agreement. Given the emergency nature of the project and the lack of procurement / implementation capacity of the Government, the project will revert to the use of experienced UN agencies, such as UNICEF, UNOPS, WHO, and or WFP who already well established in Southern Sudan. The UN agencies, which will be recruited by an experienced procurement specialist under close supervision by the Bank, can count on specialized local knowledge and distribution / storage points in strategic locations. This will facilitate the delivery and further re-distribution of urgently needed goods such as vaccines, medical products, textbooks and office equipment. UN Agencies own competitive procedures will be used since this is consistent with section 3.9 of the Guidelines Procurement of Works: Rehabilitation and small construction of works will be carried out under The Support to the Ten States components of the project. Procurement of works would include fast-track procurement procedures previously approved by the Bank and consistent with section 3.9 of Bank Guidelines. UN agencies such as UNOPS with extensive local experience in similar works will be contracted to manage and procure contractors for the rehabilitation of the sites in Juba and in the ten states. The recruitment of UNOPS is consistent with sections 3.15 of the World Bank Consultants guidelines. The small works contracts are expected to be less than US$100,000 each and will be awarded mostly through request of quotations from the few construction firms located in the area. Procurement of Goods: The project will support the procurement of pharmaceuticals, medical consumables, textbooks, and school kits. It is expected that all goods with the exception of road base will have to be imported. Given the emergency nature of the project and the need for the immediate delivery of critical goods such as vaccines, part of the imports will be carried out through air freight. In absence of experienced procurement staff at Government level, most of the goods needed in the first 7 months of the projects will be procured and delivered through experienced UN Agencies such as UNICEF and UNOPS which are already well established in Sudan and have the needed specialized expertise. It is expected that part of the goods such as consumables and medicines are already in stock in UN agency warehouses in Copenhagen as well as available through non-profit pharmaceutical wholesalers and large suppliers, thus assuring immediate delivery soon after the start of the Program. Procurement of Consulting Services: In order to assure procurement capacity to the Government of Southern Sudan, the project will finance the recruitment of a Procurement Agent which will assist GOSS in conducting the day to day GoSS procurement activities. The recruitment will be carried out through the use of the quality and cost selection base (QCBS) procedures stated in sections of the Bank Consultant Guidelines. For each of these three consulting assignments, after advertisement of the request for interest in UNDB and dgmarket online, a shortlist of up to 6 experienced consulting firms will be made, to which the standard Bank s Request for Proposal (RFP) will be sent. TOR and all stages of the recruitment will be subject to prior review by the Bank. Once the contract is signed and the firm will be established in Sudan it will assist the GOSS in improving transparency and accountability in use of public resources. It is expected that the firms will be in place on or about April 1, In order to enable the pipeline of projects to disburse in a smooth manner, and to ensure proper accountability and fiduciary controls in the interim period, the project will count on the use of an experienced procurement specialist and the sole source selection basis of firm KPMG which has assisted the Government in the last 12 19

20 months in a UNICEF project. Recruitment of KPMG for this task will be for an initial period of six months, with an option to extend for a further period of six months. KPMG has indicated it is in a position to take up this task with effect from December Prior Review All contracts with UN agencies will be subject to prior review by the Bank. In addition, all TOR for consulting assignments and the selection procedures for the procurement and FM agents, will also be subject to prior review. No other contracts are envisaged under the project outside of the ones described in the Procurement Table, below. In case additional contracts would be carried out, prior review would be used fof contracts above the following thresholds: Works All contracts under ICB, LIB and/or above US$300,000 equivalent; All contracts awarded under Direct Contracting; and The first two contracts awarded under NCB, selective Bidding or Community Participation. Goods All contracts under ICB, LIB and/or above US$150,000 equivalent; All contracts awarded under Direct Contracting; and The first two contracts awarded under NCB, selective Bidding or Community Participation. Consulting services All Terms of Reference (TOR) and QCBS / LCS selection methods. For contracts for consulting firms or organizations above US$100,000 equivalent All contracts for individual consultants above US$50,000 equivalent. All single source contracts. Table 4 below is the procurement plan for each component of the project. Procurement Table Component Description Procure Method Pharmaceuticals Supply and Delivery of Pharma And Med. Consum UN agency as procurement agent. UN procedures to be followed # of Contrac t Bank Prior Review 1 YES for UN Agency contract Budget Amount IFB/ Bid Opening $5.6 11/20/05 11/30/05 Evaluation Report/ Contract Complete Sign 12/06/05 12/13/05 3/30/06 Text Books Procurement Agent Printing and delivery of Text books and Student and Teacher Kits Recruitment of experienced procurement Agent) UN agency as procurement agent. UN procedures to be followed 1 YES for UN agency contract QCBS 1 YES for TOR & selection procedures $7.0 11/22/05 n/a $3.0 11/15/05 12/08/05 12/06/05 12/19/05 n/a 12/14/05 1/22/06 2/15/06 3/30/06 for goods 6/30/05 for delivery 20

21 Project Accounting Firm (immediate term) Support to States Furnish and Equip GOSS offices Works (not included in UN agency contract) Goods (nt included in UN agency contract) Consulting services Recruitment of experienced project accounting firm for immediate needs for a 6 month period Furniture and equipment and connectivity equipment Purchase and delivery of furniture and equipment Sole source UN agency as procurement agent. UN procedures for Small works and shopping to be followed UN agency as procurement agent. UN procedures to be followed YES for TOR & QCBS selection Procedure s 1 YES for UN agency contract 1 YES for UN contract >300,000 >150,000 ALL TOR >100,000 (firms) >50,000 (individual ) UN agencies /Implement. Fee Contingency 1.15 $27.25 $0.5 11/30/05 $ /22/05 12/08/05 After assess mission $4.9 11/22/05 12/06/05 12/17/05 1/05/06 3/31/06 12/17/05 1/05/ n/a n/a 11/15/05 8/31/06 The above dates are estimates and will be finalized when the contents/description of the procurement activities and civil works are fully agreed. Frequency of supervision: Though most of project implementation will be carried out by experienced UN agencies, the risk for the project is considered HIGH.due to the inexperience of GOSS and the emergency situation. Frequency of procurement supervision is expected to be one every 6 months in addition to those of routine supervision by the TTL. 21

22 1. Financial Management Assessment: Annex 5 Detailed Financial Management Arrangements AFRICA: Southern Sudan: Rapid Impact Emergency Project (RIEP) The World Bank s Operational Policy requires the borrower and the project implementing agency to maintain adequate financial management systems including accounting, financial reporting, and auditing systems to ensure that accurate and timely information can be provided regarding project resources and expenditures. An FM assessment is undertaken to ensure that the project has acceptable financial management arrangements to ensure that funds are used only for the intended purposes in an efficient and economical way, there is adequate capacity for the preparation of accurate, reliable and timely Financial Monitoring Reports (FMR s), and systems are in place to ensure that there are adequate safeguards for the entities assets. This assessment has been carried out in accordance with OPCS guidelines titled Assessment of Financial Management Arrangements in World Bank-Financed Projects Guidelines to Staff issued by the Financial Management Sector Board on June 30, 2001, and revised on October 1, This appraisal has focused on (a) an assessment of the extent of preparedness by the borrower s implementing agencies in terms of financial management arrangements; and (b) development of a time-bound action plan for strengthening the financial management system in readiness for project implementation. 2, Country context: Sudan s almost fifty years of independence have been marked by two rounds of civil war, three periods of military rule and a number of tribal and ethnic conflicts. The twenty year old civil war with the South ended in January 2005 with the signing of the Comprehensive Peace Agreement. This had been preceded with the signing of the Machakos Protocol in 2002, a Wealth Sharing Agreement in January 2004, a Power Sharing Agreement and two significant protocols on key disputed areas in June The process of implementing these agreements is underway, with the Government of Southern Sudan (GoSS) having been officially formed in October The process of transforming a guerilla force into a functional, accountable and responsive civilian government is well underway. 3. PFM System: The Ministry of Finance and Economic Planning (MOFEP) for the Government of Southern Sudan was established on 23 October HE Arthur Akuien Chol is the Minister of Finance. The Minister and his staff are in the process of shifting into premises vacated by the Government of Sudan in Juba. MOFEPstaff dispersed in Nairobi, Yei and Rumbek are shifting to Juba to occupy these premises. The only assessment that exists of the public financial management system was the one undertaken as part of the UN Joint Assessment Mission (JAM) earlier this year. This assessment concluded that the entire public financial management system needed to be built from the ground up. Some of the features of the system were: During the war years the entire focus had been on channeling all available resources to support the war effort. SPLM s Secretariat of Finance and Economic Planning (SOFEP), at Yei, headed by Commissioner Arthur Akuien Chol accounted for only a small share of receipts and expenditures. In FY 04 receipts were only around US$10,000 per month, a 16% increase from the previous year. These were primarily from customs (71%) from areas adjacent to Yei, especially the border crossing with Uganda. Only around 30% of customs receipts figured in SOFEP books. The bulk of the customs receipts (around 70%) were estimated to having been sent directly from revenue collection points to the main spending units - the Sudan Peoples Liberation Army/ Movement (SPLA/M) General Headquarters, the Leadership Council and to the Political Affairs Department. In Yei itself Line Ministries and Departments were in the practice of collecting and retaining their own revenues which were not reported to or accounted for by SOFEP. SOFEP received revenue from only the State of Equatoria where it is was based. Other states such as Bahr El Ghazal, collected their own revenue and transmitted 60% of it directly to the SPLA (the Army), with the rest being 22

23 retained for the three levels of government - the State, County and Payam. This is not surprising given the flexible administrative arrangements and poor communication facilities. Expenditure reporting was particularly weak. SOFEP only maintained a cashbook to account for its own expenditures. Cash management was particularly challenging with there being no commercial banking facilities in the whole of Southern Sudan. No annual accounts are prepared and there is no system of either internal or external audit. As can be expected, the HR challenges are immense. SOFEP has 69 employees, of which 20 had received some form of accountancy training in North Sudan. No data was available regarding the number of employees handling public finances outside of Yei. Over the last 18 months there have been several significant developments: UNICEF, USAID and the World Bank have provided support for public financial management. UNICEF s Capacity Building Trust Fund (CBTF) which is disbursed through KPMG as the FM Agent has met pressing expenditures. USAID has supported PFM through capacity building activities, including through acquiring an off the shelf IFMIS system, Freebalance, that is now operational in Nairobi. The World Bank through the Licus Trust Fund has provided equipment and three advisors in PFM, Procurement and Civil Service Reform. All CBTF transactions are booked in the Freebalance system. Although four SOFEP employees have received training in Freebalance, GoSS transactions are still to be booked through the IFMIS system. A World Bank administered Multi Donor Trust Fund (MDTF) has been established. PriceWaterhouseCoopers (PWC) has been appointed as the Monitoring Agent. Oil revenues have accrued to the Government of Southern Sudan. These revenues have now started flowing to the south. It is expected that oil revenues during calendar year 05 will be around US$ 360 million. Some bookkeeping effort is underway to account for the utilization / management of these revenues. On the HR side, the transition to Juba and the availability of more experienced accounting staff there is expected to improve the skill level of GoSS staff. Commercial banking facilities are beginning to develop with the Nile Commercial Bank opening its first two branches in Southern Sudan, outside of Juba. 4. Rapid Impact Emergency Project (RIEP) : RIEP has three main components which are to be implemented over a twenty seven month period from December 2005 to end March Procurement and distribution of critical supplies: The bulk of the project funds are for procurement and distribution of pharmaceuticals, textbooks, student and teacher kits, furniture and office equipment for the newly constituted ten States in Southern Sudan, and the Ministries in Juba. Specialized consultancy services: This component is for strengthening the fiduciary framework for utilization of MDTF and GOSS resources. It supports the recruitment, for a period of two years of specialized forms for supporting procurement management, immediate use of a procurement specialist and immediate sole sourcing of a interim (6-9 months) project accounting firm. Capacity building of GoSS will be simultaneous undertaken through the Core Capacity Building Project, that is currently being formulated. As GoSS capacity builds up, the capacity contracted in through consultancy contracts is expected to reduce. The total project cost is US$ million, of which GoSS is funding US$ 7.25 million. The funding will be pooled into a project account and disbursed over a little over two years. The disbursement schedule is expected to be the following: RIEP Funding (US$ million) Supply and Distribution of Pharmaceuticals and Medical Consumables Supply and Printing of Textbooks and Supply of School Kits Procurement Agent Project Accounting Services Support for the 10 States

24 7. Furnish and Equip GOSS offices 5.5 Contingency Total: Implementation arrangements: The project is to be implemented through the Policy and Planning Unit within the Ministry of Finance and Economic Planning. A Project Manager has been identified for this task. The Project Manager and task team will report to a Project Task Force (PTF) headed by the Minister of Finance. The PTF will include representatives of the MDTF, GOSS implementing Ministries / Agencies and UN OCHA. The role of the PTF will be to approve the work plan and budgets, review audit reports and quarterly progress reports. In addition, the PTF will provide coordination in respect to the roles and funding of various participating donors and government counterpart funding, resolve inter-agency issues, conduct monthly reviews of project progress and fund utilization. Considering the fact that the Ministry of Finance itself was established only in October 2005, and institutional arrangements are weak, implementation arrangements will be particularly challenging. 5. Risk Assessment: With weak institutional and governance structures and weaker capacity, this is a high risk operation. Inherent Risk 1. Country level: This risk has been assessed as being high since governmental level institutional arrangements are still evolving. There is weak capacity in public financial management, in line with the weak overall civil service capacity. As this is very much a transition period, there are no clear financial regulations or accounting standards. 2. Entity level: This risk has also been assessed as being high. The Ministry of Finance and Economic Planning has just been established in October 2005; the Project and Planning Unit has not implemented any bank funded projects in the past. 3. Project level: This is a project with eight components, many of which are to be contracted out for implementation to different contractors / UN Agencies. Effective contract management will be critical to the success of this project. Overall Inherent Risk Control Risk 1. Budget: Effective budget formulation and execution is a challenge. It has a risk rating of High since GoSS is still to Risk Assessment H S M N Risk Mitigating Measures As with other post conflict countries, where there is weak capacity, risk is being mitigated through an interim arrangement of a framework of fiduciary agents and contracting out of capacity. The Monitoring Agent is to monitor all expenditures out of the Multi Donor Trust Fund, the Project Accounting Agent is to manage the actual accounting and financial reporting. An independent audit firm will audit the financial statements of this project. Domestic capacity is being built concurrently, through projects such as the Core Capacity Building Project, which is currently being designed, that will utilize both GoSS and MDTF resources. The risk is being mitigated through the creation of a Project Task Force (PTF) which will be staffed by key stakeholders, including external experts from the MDTF and from UN OCHA. The PTF will closely monitor project implementation and fiduciary compliance. The risk is being mitigated through GoSS awarding sole source contracts to UN Agencies to implement most of the components of this project. Three external advisors provided through the Licus Trust Fund, attached to the Ministry of Finance, in the areas of procurement, public financial management and civil service reform will also provide support for the effective implementation of this project. Sufficient support is being provided to ensure that the budget formulation process is orderly and focuses on national priorities. A budget preparation workshop is planned in Juba at the end of November International TA is being provided to support the 24

25 formulate and execute its first budget. A budget preparation exercise for the period July December 2005 was concluded successfully, but the budget was never presented or formally adopted. One risk element is the quantum of funding that will go through the budget. This is far greater than the SOFEP has been used to handling or accounting for in the past. 2. Accounting Policies and Procedures: GoSS is still to finalize its financial policies and procedures. It is expected to do this in the next few months. The financial management manual for this project has still not been finalized and tested. 3. Internal controls and Internal Audit: There is currently no internal audit department in GOSS and internal controls are weak since the financial regulations have still not been adopted. 4. Funds Flow: Transfer of oil resources on a regular basis is in the process of stabilizing. The accounting arrangements for these resources are being thought through. As competing demands build up for GoSS budgetary resources, it is possible that there could be delays encountered in the availability of counterpart funding. 5. Financial Reporting and Monitoring: This is an area of particular weakness, since reporting or accounting formats are neither finalized nor published. 6. Staffing: HR capacity is particularly weak both at the GoSS as well as in the ten states. Integration of staff in Juba will help alleviate the shortage in some critical skill areas, but severe gaps are expected to persist for some time. 7. External Audit There is no external audit capacity in Southern Sudan. The Auditor General is still to be appointed and the Audit organization has still to be established. Risk Assessment H S M N Risk Mitigating Measures budget formulation process through the Bank s LICUS Trust Fund as well as by USAID. Finalization of the project financial management manual will be one of the effectiveness conditions of the project. This is expected to be largely based upon similar manuals adopted for other trust Funds such as the Master Implementation Manual (MIM) for the Iraq Trust Fund, which is in line with Bank requirements. Based upon the experience in other post conflict countries such as Afghanistan, GoSS had been requested to consider contracting in capacity for supporting the effective implementation of internal controls and internal audit. It has been agreed with GoSS that two experts will support the Treasury in starting the process of building a robust system of internal controls and internal audit. For this project, internal audit requirements will be satisfied through requiring the Project Accounting Agent to provide capacity to ensure effective internal controls. The first internal audit report is expected by March The risk of lack of adequate counterpart funding is expected to be mitigated through adequate budgetary being provided for this contribution on an annual basis. This risk has been assessed as being Significant and not High since GoSS s contribution is only US$ 7.25 million, and adequate funding is available to meet this commitment. A condition of project effectiveness will be agreement on the Financial Management Reports (FMR s) necessary for implementation of this project. Having in place a robust project financial management system will result in production of the required financial report including the FMRs. In the immediate term the HR constraint will be overcome through ring-fencing project funding to institutions that have the capacity to implement adequate fiduciary controls such as UN agencies or NGO s with adequate capacity. In the longer term this challenge will be met through capacity building initiatives utilizing GoSS s own resources with support from institutions such as the World Bank (Core Capacity Building Project) and agencies like USAID. GoSS has agreed to contract out this service through retaining an External Audit Agent recruited through an international competitive bidding process. This is likely to take 4-6 months. 25

26 Overall Control Risk Overall Risk rating Risk Assessment H S M N Risk Mitigating Measures H = High, S = Substantial, M = Moderate, N = Negligible or Low 6. Strength and Weakness: Strength: The transition to the formation of a Government of Southern Sudan (GOSS) has been relatively smooth. New institutional arrangements are being formalized in an organized and efficient manner. The availability of substantial quantities of oil resources is a huge advantage if they are used in an economically efficient, transparent and accountable manner. A particular area of strength is the willingness of GoSS to interact effectively with the international community at this formative stage so that lessons of good practices from Africa and elsewhere can be adapted quickly to the situation in Southern Sudan. Weakness: Institutional and governance capacity is weak, with basic PFM systems and procedures still to be established. The lack of adequate HR capacity is critical as can be expected in a situation such as this. There is no familiarity with Bank procedures or guidelines. The banking system is virtually non existent, increasing the challenge of establishing a payment mechanism or entering into commercial transactions. 7. Financial Management Arrangements: Basic Principles: The project is designed on the basis of pooling of resources with common accountability and reporting relationships. The fiduciary accountability systems being put in place will therefore provide assurance regarding use of funds both to the GOSS and the MDTF. Institutional arrangements for PFM: This is going to be the first MDTF to start disbursing in Southern Sudan. The institutional arrangements for this project will therefore be the model for other projects in the pipeline. In the high risk, weak capacity environment, the overall fiduciary framework being put in place is outlined below. This is comparable to fiduciary controls established in other post conflict environments. A Monitoring Agent (MA) for the MDTF has been appointed. The contracting process is likely to be completed shortly. The MA will monitor actual expenditures to ensure that funds are being utilized for the purpose intended. The MA will ensure that fiduciary standards are being complied with, and report on all cases of non compliance. A Project Accounting Agent (PAA) is in the process of being appointed. As an interim arrangement, this is being sole sourced, while an international competitive bidding process is underway. The PAA will be responsible for ensuring that reliable and robust accounting systems are in place to ensure proper accounting and reporting of transactions as per international accounting standards. The PAA will take fiduciary responsibility for release of funds. An experienced procurement specialist, recruited by the Bank, has been seconded to GOSS and will assist the Government in the recruitment of UN agencies for the different components of the project. In addition, Procurement Agent (PA) firm will be recruited as from June 2006 to ensure that procurement is conducted in a transparent and accountable manner, and as per MDTF requirements. Price Waterhouse Coopers (PWC) is being contracted as the MA for Southern Sudan. A Project Disbursement Unit (PDU) would be established in the Treasury of the Ministry of Finance of GoSS. The unit would be staffed by a Project Accounting Agent (PAA) to be recruited under a forthcoming project for handling all project related financial management tasks. The PAA would provide a common financial management services for all projects, use the same IFMIS platform as is being implemented by the Treasury (viz. Freebalance), and offer clearly defined service standards to implementing agencies. These service standards would be incorporated into a MOU between the PDU and individual implementing agencies. The PDU would be part of the GoSS Treasury, but be responsible only for accounting for project related funding. It is understood that GoSS is separately seeking external assistance for developing the core treasury functions, including the overall budget formulation and budget execution process. 26

27 During appraisal GoSS has agreed to recruit a PAA through an international competitive selection process. Since this is likely to take time, GoSS proposed that KPMG be recruited on a sole source basis for discharging these duties for a six month period starting December 2005, with an option to extend this arrangement for a further period of six months. KPMG has been identified by GoSS since it is the only major accounting firm that currently has operations in Southern Sudan, since it has been the FM Agent for the UNICEF Capacity Building Trust Fund (CBTF) since KPMG has expressed interest in undertaking this task and has identified a Task Leader and a team that can be deployed immediately. The terms of this engagement will need to be negotiated. GoSS needs to enter into this contract with KPMG, for carrying out project accounting tasks in compliance with international standards, and as per a ToR that is acceptable to the MDTF. Action is underway to contract KPMG. In addition to the above, under the Licus Trust Fund, specialized support is being provided through a Procurement Expert and a PFM Expert who has, until now, been focusing on the budget formulation process. Specialized experts are also to be contracted in for strengthening internal controls and internal audit. Fund Flow and Banking Arrangements: MDTF funds will disburse from the Project Grant Account into a Project Account established in a commercial bank in USD in Nairobi. The Project Account (USD) in Nairobi which will also receive counterpart fund contributions from GoSS in USD. There will be pooling of funds in this account. A second Project Account in local currency will be opened in a commercial bank in Juba. The initial replenishment into the Project Account (USD/ NBO) will be for an amount of USD 3 million from the MDTF. Counterpart funding will be released by GoSS into the USD Project Account in NBO where the pooling of MDTF and GOSS funds will take place. The PAA / GoSS will be responsible for managing the two Project Accounts. For large payments, the PAA through the GoSS could request for direct payments to contractors / UN Agencies. The accounting for these payments would need to be reflected in the withdrawal applications submitted by PAA through the GoSS. The MDTF Monitoring Agent would monitor and report on the utilization of this pool of funds, including the fiduciary standards complied with and the reliability of the FM systems. The PAA will be required to maintain a Ledger Grant Account (Washington) in US Dollars to keep track of draw downs from the MDTF grant. The account will show (a) deposits made into bank X by the Bank, (b) direct payments by the Bank, and (c) opening and closing balances. 27

28 All bank accounts will be reconciled with bank statements on a monthly basis by the PAA. The bank reconciliation statements will be reviewed by designated officials, and identified differences will be expeditiously investigated. The PAA will be responsible for preparing and submitting to the World Bank consolidated applications for withdrawal, as appropriate. Appropriate procedures and controls will be instituted and documented in the Project Implementation Manual (PIM) to be issued by the PAA. This manual will be used by the PAA for project implementation, to ensure disbursements and flow of funds are carried out in an efficient and effective manner. The PAA will maintain a cumulative record of draw-downs from the MDTF grant that will be reconciled monthly with the Disbursement Summary provided by the Bank. Detailed banking arrangements, including control procedures over all bank transactions (e.g. cheque signatories, transfers, etc.), will be documented in the PIM. The grant will be allocated according to the expenditure categories as follows:- Amount in US$ millions % of Expenditures to be Financed Expenditure Categories Goods % Works % Consultant Services % Contingency Disbursement Arrangements Disbursement method: Total project costs Disbursements from the MDTF would be transaction based / Statements of Expenditure (SOE s). PAA shall submit payment requests to the Bank based on Statement of Expenditure (SOE). Documentation supporting all expenditures claimed against SOE s will be retained by the PAA, and will be available for review when requested by the Bank supervision missions and project internal and external auditors. All disbursements are subject to the conditions of the MDTF Grant Agreement and the procedures defined in the Disbursement Letter. Disbursements made on the basis of SOE s will be for (a) services of consulting firms costing less than US$100,000 equivalent; and (b) services for individual consultants costing less than US$ 50,000 equivalent; and (c) goods costing less than US$ 150,000 equivalent and works costing less than US$ 300,000 equivalent. Disbursements for expenditures above these thresholds will be against presentation of full documentation relating to those expenditures. Project Account (USD): The Project Account (USD/NBO) will be replenished through the submission of Withdrawal Applications supported with quarterly SOE s and copies of relevant bank statements. The withdrawal application shall include an amount required to finance Eligible Expenditures during the six-month period following end of the quarter for which the SOE was prepared. All disbursements will be channeled through the Special Account. The initial allocation and advance to the Special Account from the MDTF will be for an amount of US$ 3 million. Replenishment of the PA will follow World Bank procedures. Requests for replenishment of the PA will be submitted on a monthly basis or as required. The minimum amount of applications for direct payments and special commitments will be at least 10% of the allocation of the PA. The movements in the PA will be audited during the annual audit of the project. GoSS will contributes its share of the project costs (27%) as advance directly into the project account in USD. Detailed disbursement procedures will be documented in the PIM. Planning and Budgeting Cash Budget preparation will follow the procedures outlined in the PIM. Additionally, financial projections or forecasts for the life of the project (analyzed by year) will be prepared. On an annual basis, the PAA will prepare the cash budget for the coming period based on the work program. The cash budget should include the figures for the year, analyzed by quarter. 28

29 The cash budget for each quarter will reflect the detailed specifications for project activities, schedules (including procurement plan), and expenditure on project activities scheduled respectively for the quarter. The annual cash budget will be sent to the TTL at least two months before the beginning of the project fiscal year. Detailed procedures for planning and budgeting will be documented in the PIM. Fixed Assets and Contracts Registers The PAA will prepare and regularly update a Fixed Assets Register. A Contracts Register will also be maintained in respect of all contracts with consultants and suppliers. The PAA will prepare Contract Status Reports quarterly. Control procedures over fixed assets and contracts with consultants and suppliers/vendors will be documented in the PIM. Information Systems The PAA will establish and maintain all project financial management records as per the Freebalance IFMIS system that has been procured by GoSS and is operational in the Treasury. This web enabled computerized system will be utilized for tracking, recording, classifying and reporting project transactions. Financial Reporting and Monitoring Monthly, quarterly and annual reports will be prepared for the purpose of monitoring project implementation. The reports will be submitted to the project coordinators, project implementing units, and the Bank. Detailed reporting procedures and the format, contents and frequency of reports will be fully documented in the PIM. Monthly: On a monthly basis, the PAA will prepare and submit the following reports to GoSS and the Bank: Bank Reconciliation Statement for each bank account; Monthly Statement of cash position for project funds from all sources, taking into consideration significant reconciling items; Monthly Statement of Expenditure classified by project components, disbursement categories, and comparison with budgets, or a variance analysis; and Statement of Sources and Uses of funds (by Major Category/ Activity); Quarterly: The following financial monitoring reports will be prepared by the PAA on a quarterly basis and submitted to GoSS and the Bank: Financial Reports which include a Statement showing for the period and cumulatively (project life or year to date) inflows by sources and outflows by main expenditure classifications; beginning and ending cash balances of the project; and supporting schedules comparing actual and planned expenditures. The reports will also include cash forecast for the next two quarters. Physical Progress Reports which include narrative information and output indicators (agreed during project preparation) linking financial information with physical progress, and highlight issues that require attention. Procurement Reports, which provide information on the procurement of goods, work, and related services, and the selection of consultants, and on compliance with agreed procurement methods. The reports will compare procurement performance against the plan agreed at negotiations or subsequently updated, and highlight key procurement issues such as staffing and building Borrower capacity. SOE Withdrawal Schedule listing individual withdrawal applications relating to disbursements by SOE based method, by reference number, date and amount. Annually: The annual project financial Statements, which will be prepared by the PAA will include the following: Statement of Sources and Uses of funds (by major Category/ Activity); Statement of Cash Position for Project Funds from all sources; Statements reconciling the balances on the various bank accounts (including the Project Account) to the bank balances shown on the Statement of Sources and Uses of funds; SOE Withdrawal Schedules listing individual withdrawal applications relating to disbursements by the SOE based method, by reference number, date and amount; Notes to the Financial Statements. 29

30 Indicative formats for the reports are outlined in two Bank publications: (a) Financial Monitoring Reports: Guidelines to Borrowers, and (b) Annex to the Master Implementation Manual prepared by the Iraq Trust Fund. The actual format will be fully documented in the PIM. Accounting Policies and Procedures MDTF resources will be accounted for by the Project on a cash basis. This will be augmented with appropriate records and procedures to track commitments and to safeguard assets. Accounting records will be maintained in US$. The Chart of Accounts will facilitate the preparation of relevant monthly, quarterly and annual financial Statements, including information on the following: Total project expenditures Total financial contribution from each financier Total expenditure on each project component/activity, and Analysis of that total expenditure into civil works, various categories of goods, training, consultants and other procurement and disbursement categories. Annual financial Statements will be prepared in accordance with International Accounting Standards (IAS). All accounting and control procedures will be adequately documented. 9. ACTION PLAN The following actions are to be implemented as specified. ACTION By Whom By When 1 Sole source Project Accounting Agent (PAA) for an initial GoSS with concurrence Negotiation period of 6 months of MDTF on ToR s 2 Issue Project Implementation Manual Interim PAA / GoSS Effectiveness 3 Finalize MOU between GoSS and relevant UN Agencies regarding terms and conditions for channeling funds to them, in consultation with MDTF GoSS Effectiveness Supervision Plan As this is a high risk project, it will be supervised on a quarterly basis by a Bank accredited FMS. Supervision activities will include review of quarterly FMRs; review of annual audited financial statements and management letter as well as timely follow-up of issues arising; annual review; participation in project supervision missions as appropriate; and updating the FM rating in the Implementation Status Report (ISR). Audit Arrangements Internal Audit The Internal Auditor in the PAA will perform internal audit activities for the project. Regular internal audit reports will be submitted to GoSS and the Bank. External Audit The Project's financial statements will be audited in accordance with internationally recognized auditing standards by independent auditors. The audit reports and financial reports will be submitted to the Bank within 6 months of the end of the fiscal year. In addition to an opinion on the financial statements expressed in their succinct report, the auditors will be asked to review in depth all expenditures and internal controls procedures used for their preparation during the period under review, in order to express a separate opinion on them. In addition to the audit report, the external auditors will be expected to prepare Management Letters giving observations and comments, and providing recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the MDTF Grant agreement. It is the responsibility of GoSS to appoint independent auditors which are acceptable to the Bank. GoSS is also responsible for: (i) having the Project's financial statements audited annually, and (ii) submitting to the Bank the audited statements together with management letters. GoSS will ensure that audit ToR s as well as the auditors proposed will be acceptable to the Bank. 30

31 The audit timetable is the following: Audit Report Implementing Agency Auditor Due Date Project Financial Statement Policy and Planning Unit in MoFEP / PAA Independent Audit Firm acceptable to MDTF and ToR acceptable to MDTF June 30,2007 Procurement Arrangements: For non UN agencies, procurement will be as per the procedures outlined in the Guidelines: Procurement under IBRD Loan and IDA Credits and Selection and employment of Consultants by World Bank Borrowers. UN agencies will be able to use their own procurement procedures.. Please refer to Annex 4 for more detailed information UN Agencies: The grant recipient is the Government of Southern Sudan (GoSS). The accountability relationship for the utilization of pooled funds is between the GoSS and MDTF, and GoSS is expected to be fully compliant with the financial management and disbursement procedures outlined above. GoSS may, if it so chooses, contract UN agencies to execute part of the project components. In case such tasks are contracted out, GoSS will need to ensure that UN agencies are compliant with the financial management procedures outlined above, including the requirements for external audit. In executing the MDTF Southern Sudan project components, UN agencies can utilize their own procurement procedures as mentioned above. However for financial management (FM), they need to comply with Bank requirements. The only exception is UNDP which has an existing MOU with the World Bank, expiring on December 31, 2007 which allows it to utilize its own financial management procedures when it receives resources from the World Bank, including trust funds administered by the World Bank. A Global Framework Agreement between the UN and the World Bank has been under discussion for some time. This agreement outlines the conditions subject to which UN agencies can utilize their own FM procedures. However till this Agreement is finalized UN agencies will need to adhere to World Bank requirements on financial management and audit for RIEP resources. 31

32 Annex 6 Economic and Financial Analysis Per OP 8.50 an Economic and Financial Analysis is not required. 32

33 Annex 7 Environmental and Social Management Framework It is anticipated that the Environmental and Social Impacts of the project will be minimal and will result in sustainable outputs. Below is a table showing the possible impacts and mitigation interventions. Component Possible Impacts Mitigation Interventions Supply and Distribution of Pharmaceuticals Disposal of old Pharmaceuticals Security Risk Every effort will be made to distribute all medicines prior to their expiry date. Any left over supplies will be disposed of in accordance with WHO guidelines. A comprehensive program for disposal of expired medicines (including an option for incineration) will be developed in the forthcoming on health project to be appraised in Pharmaceuticals will only be delivered to health facilities Supply and Distribution of Textbooks Procurement Agent Support to 10 States (office buildings) Furnish and Equip GoSS offices Security Risk No Impacts foreseen Appropriate disposal of construction materials/ rubble including asbestos and other potentially toxic materials if encountered: Security No Impact in locations where UN Security is less than Level 4 Text books and kits will only be delivered to schools in locations where UN Security is less than Level 4 N/A Addressed in a protocol that will be in place within 6- months of effectiveness or prior to commencement of work involving asbestos removal. Renovations and Equipment will only be install schools in locations where UN Security is less than Level 4. N/A 33

34 Annex 8 Letters of Endorsement by Sector Ministry and MOF 34

35 Annex 9 List of Ministries 1. Ministry for Cabinet Affairs 2. Ministry for SPLA Affairs 3. Ministry for the Police and Security Forces 4. Ministry of Finance and Economic Planning 5. Ministry of Regional Cooperation 6. Ministry of Legal Affairs and Constitutional Development 7. Ministry of Education, Science and Technology 8. Ministry of Health 9. Ministry of Industry and Mining 10. Ministry of Trade and Supply 11. Ministry of Information, Radio and Television 12. Ministry of Communications and Postal Services 13. Ministry of Transport and Roads 14. Ministry of Lands, Housing and Public Utilities 15. Ministry of Environment, Wildlife and Tourism 16. Ministry of Agriculture and Forestry 17. Ministry of Animal Resources and Fisheries 18. Ministry of Labor, Public Service and Human Resource Development 19. Ministry of Culture, Youths and Sports 20. Ministry of Cooperation and Rural Development 21. Ministry of Social Development and Religious Affairs 22. Ministry of Water Resources and Irrigation 35

36 Annex 10 Approved IPP s Southern Sudan IPPs South Remarks Core Capacity Building Sudan Emergency Transport & Infrastructure Development (SETIPD) Total Budget ($ million) MDTF expected contribution Implementing period USD 15 US$ 15 2 years Approved by IOC-S Oct 11, 2005 US$ 213 US$ 75 4 years Approved by IOC-S?? Health US$ 180 US$ 60 3 years Approved by IOC-S Oct 11. Estimated MDTF contribution for the 1st year: US$36.1 Education US$ US$ years Approved by IOC-S Oct 11 Water & US$ 76 US$ years Approved by IOC-S Oct 11 Sanitation Rule of Law US$ 70.1 US$ years Approved by IOC-S Oct 11 Census US$ % of overall budget (excl. UNFPA comp.) See Remarks Joint N/S proposal. Approved by IOC/North July 20, and IOC South Oct 11. Overall Timeframe: ; 3 phases, preparatory phase Overall budget US$75.3: North/US$ 43.8; South/US$25.6, UNFPA/US$5.9 36

37 Annex 11 Component 1 Procurement and Distribution of Pharmaceuticals Reference Materials Cost of initial 4 months supply Type of facility Number of Cost of unit Number of kits Total cost facility kit in $ per period in $ Hospitals PHC facilities Laboratory supplies, and other specific medical supplies TOTAL Total cost of emergency drug and medical supplies Item Cost in $ Costs drug kits + supplies Transport cost to Entebbe Transport from Entebbe to endpoints in Sudan TOTAL Cost of Next 8 month Supply is approximately double the initial cost. 37

38 Location Annex 11 Component 1 Procurement and Distribution of Pharmaceuticals Reference Materials No of hosp. Distribution of Medical Kits No of No of kits PHC Mode of delivery Greater upper Nile Hosp small Surgical lab Malakal River/air Bentiu Air Rank River/air Bahr al ghazal Wau Road Gogrial 1 3 Road Aweil Road Raja 1 Air Equatoria Juba Road Torit Road Bor Road SHTP counties Twic east 9 27 Air Mundri Road Mvolo Road Panyijar Road Tambura Road Tonj South 5 15 Road Hosp previous under SPLM Yei Road Yambio Road Tambura Road 38

39 Annex 11 Continued Contents of Sample Small Medical Kits Note: The list of pharmaceuticals, medical consumables, surgical supplies and equipment included in this kit and the kits below in are draft form. The actual contents of the Small Medical Kits will be finalized between the Implementation Agency (UNICEF) and the Ministry of Health prior to placing an order Pharmaceutical amount per Unit # units per kit Amodiaquine /Artesunate blisterpacks 153 mg/50 mg blister Sulphadoxine/Pyrimethamin IPT in pregnancy Box of Rapid diagnostick tests Tests for falciparum only test sticks 400 Artesunate suppositoria 50 mg suppositoria rectal 100 capsules Cotrimoxazol 480 mg tabs (adult) box of Mebendazol 100 mg tablets box of Amoxicillin 250 mg breakable tabs box of Metronidazol 200 mg breakable tablets box of Ciprofloxacin 250mg breakable tablets box of Paracetamol 500 mg tabs (adult) box of Paracetamol 100 mg tabs (paediatric) box of Aspirin 500mg tabs box of Aluminium hydroxide 500 mg tabs box of Ferrous/Folic acid 200 mg FESO4 + O.25 mg Folic box of ORS packets for 1 litre sachets 200 Chlorhexidine 15 %/cetrimide 1.5% 1 litre 1 Gentian violet powder 25g/pack 4 Povidon Iodine 10% bottle 500 ml bottle 2 Whitefield ointment 40 g/25g 20 Benzyl benzoate lotion 1 litre 1 Tetracyclin eye ointment 1% tube 5g tube 50 Renewable supplies adhesive tape 2.50cm x 5 m 8 rolls 4 ballpoint blue 10 blocknote A6 10 clinical thermometer 6 cotton wool absorbent 500 g zig-zag 2 elastic bandage 8cm x 5 m (stretched) 20 rolls 1 examination gloves latex medium disposable gauze compresses 10x 10 cm, 12 ply, not sterile hydrophilic bandage, self edged, 7.5cmx 5m note book Hard cover A4 100 pages 4 soap unwrapped 200g 10 tabletbags resealable 60x 80 mm minigrip ( + pictogram) 500 pcs 4 Equipment bottle 100 ml, plastic 1 39

40 cap with spout for bottle 1 bucket, plastic 12 liter 2 dressing set 2 Drum for cotton wool and gauze 15 cm high 2 instrument tray 1 forceps artery Pean 14.5 cm straight 2 kidney dish 24 cm 300 ml 1 plastic bottle 1000 ml wide neck 3 screwcap for plastic bottle 1000ml 3 scissors surgical straight, cm 2 syringe luer disposable 10 ml 2 surgical scrub brush 2 waterbag foldable 20 l strong quality with tap 1 Extra Hospital Surgical Supplies Qty per Pack Number of Boxes suture needles assorted size Cutting 12 4 suture needles assorted size round body 12 4 Suture catgut chromic (3/0) 1x150 cm 36 2 Suture catgut chromic (2/0) 1x 150 cm 36 6 Suture catgut chromic (0) 1x 150 cm 36 6 Suture catgut chromic(1) 1x 150 cm 36 6 Suture catgut chromic(2) 1x150 cm 36 6 Vicryl (2/0) 2x70cm 36 1 Vicryl (0) 2x 70 cm 36 1 Vicryl (0) 2x 70 cm 36 1 Vicryl (1) 2x 70cm 36 1 suture polyamide (3/0) 45 cm, with cutting needle 36 4 suture polyamide (2/0) 75 cm with cutting needle 36 4 spinal needle 20Gx 90 mm disposable 25 2 spinal needle22g x 40mm disposable 25 2 IV placement Units 18G green 50 8 IV placement unit 22 G, blue IV placement Unit 16 G 50 8 sterile gloves surgical sterile gloves surgical examination gloves latex, non sterile, medium apron utility 120 cm opaque plastic reusable 1 10 surgical face mask disposable with metal nose piece

41 Annex 11 Continued Hospital Kits Note: The list of pharmaceuticals, medical consumables and equipment included in this kit are in draft form and based on the IDA standard Hospital Kits. The actual contents of the Hospital Medical Kits will be finalized between the Implementation Agency (UNICEF) and the Ministry of Health prior to placing an order. 41

42 42

43 Annex 11 Continued Lab Supplies for Hospitals Note: The list of supplies included in Hospital Lab kit is draft form and based on the IDA standard Lab Kit. The actual contents of the Small Medical Kits will be finalized between the Implementation Agency (UNICEF) and the Ministry of Health prior to placing an order. lab supplies per hospital unit qty syringe luer 5ml with needle syringe luer 2ml with needle urine test strips protein glucose faeces specimen container with lid and spoo 1 50 urine specimen container with lid sputum container 30 ml with lid microscope slide tropical packing microscope coverslips 18x immersion oil 1 1 glass centrifuge test tube pasteur pipettes plastic graduated/unity 3ml blood lancets blood group anti A 200 tests, 10ml 3vials 1 blood group anti B 200 tests, 10ml 3vials 1 blood group anti A/B 200 tests 3 vials 1 HIV Determine hepatitis B HBsAG determine blood group anti D 200 tests 3 vials 1 carbol fuchsin strong (Ziehl- Neelsen) 500ml 1 Acid alcohol 1 giemsa solution 500 ml 500 ml 2 Malachite green 1 Lugols iodine 1litre 1 Methanol 1litre 1 methylene blue powder 25 g 1 Field stain A 500ml 1 Field stain B 500ml 1 crystal violet Acetone 1 neutro red 1 syphilis rpr (vd33) brucellosis rapid test

44 Annex 12 Component 2 Supply and Distribution of Textbooks, School and Teacher Kits Reference Documents Status of Tarbia Printing Press and Publication Corporation 44

45 Annex 12 Cont d Cost of Arabic Language Text Books. 45