Municipal Development Project (MDP)

Transcription

1 Public Disclosure Authorized I. Introduction Belize Municipal Development Project (P111928) Belize Climate Resilient Infrastructure Project (P127338) Technical Mission March 10 13, 2015 Aide Memoire Public Disclosure Authorized Public Disclosure Authorized 1. A World Bank team comprised of Keren Charles (Disaster Risk Management Specialist- Consultant) and Stephen Brushett (Lead Transport Specialist-Consultant) conducted a technical mission from March 10 to March 13, 2015 encompassing both the Municipal Development Project (MDP) and the Climate Resilient Infrastructure Project (CRIP). Yoonhee Kim (TTL and Sr. Urban Specialist) provided support from Washington DC. 2. The objective of the mission was to review the implementation of the two projects and address issues outstanding. For the MDP, the mission reviewed the implementation schedule and provided technical guidance on the on-going project activities. For the CRIP, the mission worked with the newly selected Project Coordinator to discuss the overall project implementation schedule, the recruitment of key project staff, the initial sub-project feasibility studies and the progress of the technical assistance programs. 3. The mission team held discussions with Ms. Maria Cooper (Economist, Ministry of Finance, MoF), Mr. Lennox Bradley (Chief Engineer, Ministry of Works and Transport, MoWT), Ms. Gina Young (Deputy Lands Commissioner, Ministry of Natural Resources and Agriculture, MNRA), Mr. William Lamb (Executive Director, Social Investment Fund, SIF), Mr. Ernest Raymond (Project Coordinator- MDP, SIF), Dr. Wendell Parham (Project Coordinator-CRIP, SIF), engineers working on the ongoing works and the staff of Project Implementation Units (PIU/PMU). The mission expresses appreciation for the kind support extended to the Bank team during the mission (a detailed list of persons met is provided in Annex 3). 4. This aide-memoire summarizes the findings, recommendations and agreements reached during the mission and it is subject to confirmation by World Bank management. The aide-memoire will be publicly disclosed once finalized. Municipal Development Project (MDP) Public Disclosure Authorized II. Implementation Status Overview 5. Since the last supervision mission in November, the Project has made important progress in its implementation; including the completion of Phase I small works in Orange Walk and Santa Elena and Phase II small works in Orange Walk and Belmopan. However, the Project has experienced delays in relation to previously agreed timelines in finalizing the designs for the Phase II street and drainage improvement works. The mission discussed the implementation schedule and it was agreed that outstanding works could now not be completed earlier than June An extension of the loan closing date would thus be needed to accommodate disbursements to complete the Phase II works. All of the Technical Assistance (TA) activities have been completed and the mission re-iterated the need to ensure the sustainability of the activities after Project completion. As of February 28, 2015, the Project has disbursed about US$ 9.5 million, equivalent to approximately 64% of the loan amount. The total amount disbursed and committed is US$ 10.2 million, which is about 68% of the total loan. 1

2 6. Extension of Project Closing Date: While reviewing the project implementation schedule for the Phase II investment, the mission noted that there would need to be an extension of the loan closing date in order to complete all of the Project Works. In the best scenario, the bids for the Phase II street and drainage improvement works contracts would be launched between April and June 2015 and contracts would be issued between July and September As up to nine months will be required to complete implementation of all works, the current closing date of November 2015 would be incompatible with completing disbursements for these contracts, which require an extension up to at least June The mission has flagged the likelihood that a Project extension request should be submitted to the Bank. This request will have to be approved by the Bank management as a project restructuring, to be agreed by May 2015, which is six months prior to the current loan closing date. More importantly, the mission pointed out that any extension of project closing date would have an implication on the operation cost (e.g. maintaining project staff at the PIU). The Bank highlighted the importance of maintaining key project staff to ensure the successful completion of project investment so therefore sufficient funds must be allocated to cover these requirements. III. Detailed Findings by Component Component 1: Municipal Infrastructure Investments 7. Preparation for the civil works has progressed since the last supervision mission November, with the completion of works at Almond Boulevard and Chiquibul Street (Belmopan), Santa Familia Street (Orange Walk), and Eden Street (Santa Elena). The mission met with the engineers preparing the Phase II street and drainage improvement road works and visited ongoing Phase II investment subprojects in Belmopan and Benque Viejo. The following section summarizes key findings. 8. Completion of Phase I Works a. Dangriga Market (W5A). SIF has submitted to the Bank for information the results of the water quality tests and the final environmental compliance reports dating from November. The mission reiterated its request at the time of the November mission that SIF prepare a report detailing how the design improvements have actually addressed the identified environmental issues during the first three months of operation of the new market. The report will be submitted to the Bank for further review and comment by April 10, b. Eden Street (W12). The works are completed and the project was handed over to the municipality in November. c. Santa Familia Street (W13). The road works were completed in February The Town Council is doing additional work to ensure that required road fixtures and signage are installed. 9. Phase II Works a. Almond Boulevard and Chiquibul Street, Belmopan (W18). The road works were completed in January 2015 and the inauguration of the road was held in February b. Upgrading of Central Park, Orange Walk (W16). Works have been completed and are in the process of handover. c. Rehabilitation of Market and Upgrading of Sports Complex, Corozal (W15 incorporating W19). The contract was signed in January 2015 and works are expected to be completed by July

3 d. Sidewalks for Town Center and Centennial Park, Benque Viejo (W17). The works are progressing and are expected to be completed by April 15, Earlier weather related delays are being offset by an increased effort by the contractor to complete sidewalk construction ahead of the Easter holidays. Regarding the park, the mission commended the team for ensuring that the park was handicap accessible, but noted that warning signs should be placed around the drainage inspection pits that are awaiting coverage by grills. The mission was informed that the council and local community groups have agreed to undertake complimentary investments for revegetation of the park area. e. Preparation of Designs, Technical Specifications and Cost Estimates for the Rehabilitation of Municipal Streets (C36). The final report will be shared with the SIF by March 20, 2015 and forwarded to the Bank for review and comment not later than March 27, The submission of the final report was delayed in relation to the timeframe agreed at the last mission due to a need to rework the estimates and designs of the drainage improvements in several of the towns. f. Supervision of the Rehabilitation of Municipal Streets (C37). The contract was signed with RM Engineering in association with DE&F Engineering for US$376,400. The firm has reviewed and provided comments on the designs for the Phase II street and drainage improvement works. The firm will re-engage once the works contracts have been awarded and construction is ready to commence. g. Phase II Street and Drainage Improvement Works. The mission discussed the timeline for the proposed Phase II street and drainage improvement works, the batches for which are currently under review by SIF. The invitations to bid will be issued not earlier than April 2015 and not later than June 2015: i. Batch 1: Corozal and Orange Walk (W20), San Ignacio/Santa Elena (W22), Benque Viejo (W23), Belmopan (W24) and Punta Gorda (W26). Advertisement is expected for April 2015, works commencing in August 2015, with a proposed completion of April 2016 in the best of circumstances. ii. Batch 2: Dangriga (W25). Advertisement is expected for May 2015, works commencing in September 2015, with proposed completion of May 2016 in the best of circumstances. 10. Cost allocation. The initial amounts allocated to each municipality were calculated at the beginning of the Project; however, not all municipalities have sufficient allocation to cover the costs of the proposed Phase II works. The SIF proposed that, as no additional sub-projects could be added to municipalities with cost saving, the cost savings be transferred to the municipalities that do not have sufficient funds. This suggestion was posed to the Mayor s Association, who agreed in principle. The mission advised that a formal mechanism to transfer funds be established to ensure the transparency of the process. 11. Eligibility Criteria for Phase II. SIF has informed the TCs that all the eligibility criteria will have to be met prior to commencing the bidding process for works contract, expected to start by April 2015, and that Town Councils not in compliance would be excluded from the Phase II investments. Currently, San Ignacio is the only TC not in compliance, as it has not paid its entire counterpart-financing requirement. Component 2: Technical Assistance and Capacity Building 12. National Level Policy Linked to Sustainability of TA program. The mission observed that while all the TA activities have been successfully completed and are being diligently followed up (e.g. 3

4 revenue enhancement 1 ); there are broader policy issues directly linked to long-term sustainability of TA program. Policy issues include clarifying roles and responsibilities between the national and local government (e.g. traffic management, subvention formula) and institutionalizing capacity building at central government to provide continued support to town councils. The mission encourages the SIF to hold further discussions with the PSC and the Ministry of Local Government on this matter. Component 3: Project Management 13. Project Staffing. The mission discussed Project staffing and the key findings are outlined below: a. Project Engineer (2). The SIF reiterated the challenges faced in recruiting a second project engineer and is considering various alternatives to meet the engineering needs particularly as the Phase II street and drainage improvement road works are expected to start in all municipalities. SIF will prepare TOR to be shared for review by the Bank by March 27, Monitoring and Evaluation 14. Detailed results. The mission discussed that as the Project has far exceeded some of the intermediate indicators Bank management has asked for more details on the results. The SIF s Social Specialist will provide detailed justification for all of the indicators by March 27, Number of beneficiaries. The quantification of the number of project beneficiaries will be revised to be more consistent with the baseline calculations. During the December 2013 mission, it had been agreed that the following revision would be made to the number of beneficiaries as the whole municipality benefits from the improved infrastructure, such as the improved Town Hall in Punta Gorda, the improved Market in Dangriga or the improve roads: Number of beneficiaries with access to improved quality of basic municipal infrastructure: The mission discussed that the direct beneficiaries will be the whole municipality and the indirect beneficiaries would be the districts. (para. 14.a, Aide Memoire December 2013) However, this change in calculation resulted in drastic increases in the indicators, as such, the mission advised that an alternate calculation be used for the direct beneficiaries and the municipality be used for the indirect beneficiaries. The SIF s Social Specialist proposed the following methodology for the number of direct beneficiaries: a. Road works: i. Count the number of residential lots along the rehabilitated roads and multiply by 5 (the average household size in Belize). ii. Count the number of commercial lots along the rehabilitation and multiply by a factor to be discussed with the Statistical Institute of Belize (SIB). b. Markets: Multiply the total municipal population by a factor based on discussion with the market managers and the SIB. c. Recreational spaces and structures: Multiply the total municipal population by a factor based on discussion with the SIB. It was noted that in Corozal and Orange Walk the rehabilitated parks were located centrally and used by a vast majority of the population in those municipalities. The SIF s Social Specialist will provide the new methodology and the revised M&E table to the Bank by mid-april Project Highlights. The SIFs Social Specialist will document the successes, challenges and lessons learnt on the project in a multi-media format. The Specialist will collect anecdotes and experiences from beneficiaries in the municipalities. 1 The SIF s Senior Accounts Officer and the Local Government Officer make regular visits to the town councils to analyze their financial management and provide technical guidance. 4

5 Climate Resilient Infrastructure Project (CRIP) IV. Implementation Status Overview 17. The IBRD Loan agreement for CRIP was signed in Washington DC in February 2015 and is expected to become effective before May The conditions for effectiveness include acceptance of the Legal Opinion and the Subsidiary Agreement between the SIF and the Ministry of Finance and Economic Development by the Bank. Both documents are expected to be submitted to the Bank by the end of March The Project Preparation Advance (PPA) will close at the end of March The loan agreement provides for retroactive financing of eligible project expenditures incurred after May subject to a ceiling of $1.5 million. V. Detailed Results by Component Climate Resilient Investments 18. Feasibility Study. The expressions of interest (EOIs) for the feasibility study have been submitted and the SIF will coordinate with the Ministry of Works and Transport (MoWT) on the evaluation and shortlisting from the 15 consulting firms that expressed interest. The proposed shortlist and draft final request for proposals (RFP) will be submitted to the Bank by mid-april The Chief Engineer proposed that the feasibility study contribute to, but not be responsible for, finalizing amended road design standards. It was proposed and agreed that this could instead be covered in a separate study to be added to the project procurement plan. In addition, the Chief Engineer recommended, based on recent experience, that the time to submit proposals be set to at least 45 days to give the firms enough time to put together a high quality proposal. 19. Environmental and Social Impact Assessment (ESIA). The MoWT is currently revising the ToRs for the ESIA, based on comments from the Department of Environment (DoE), and will share it with the SIF by March 27, The SIF will submit the TOR to the Bank by April 10, The Chief Engineer recommended that the DoE be closely involved in the supervision of the consultant and in the review of the outputs of the consultancy; to this end, MoWT and the DoE will prepare an implementation plan, which would outline the costs of DoE activities for the Project. The SIF will provide links to the social and environmental safeguard frameworks as the consultancy is expected to prepare the safeguards plans for the sub-project to submit to the Bank. Technical Assistance for Improved Climate Resilience Management Support to the Ministry of Natural Resources and Agriculture (MNRA) 20. National Spatial Data Infrastructure (NSDI). a. Selection of Focal Points. The MNRA is currently identifying focal points from among the almost 40 agencies across Belize to be involved with the NSDI. The focal points will help to complete the stakeholder and needs analysis that was initially prepared by the NSDI consultant. b. NSDI Consultancy. The NSDI consultant submitted his Interim Report, which is currently being reviewed by the MNRA and the SIF. Based on initial review, the MNRA has proposed a timeline to the SIF to be shared with the consultant. The Interim Report #1 and revised work plan will be submitted to the Bank for comments by April,

6 c. Systems Administrator. The evaluation of CVs for the Systems Administrator will occur by March 17, The Systems Administrator will work with the NSDI consultant to recommend capacity-building activities, including trainings and equipment, for the MNRA and the stakeholders of the NSDI. d. PSC. To advance the NSDI initiative, the MNRA will propose that the Ministry of Energy, one of the key NSDI stakeholders, be added to the CRIP PSC, which is to serve as the NSDI Executive Committee. 21. Land Use Planning TA. The mission informed the MNRA that the Bank would provide an official response to the s CEO of Ministry of Finance and Economic Development and the CEO of MNRA on this subject by March 20, Technical Assistance for Improved Climate Resilience Management Support to the Ministry of Works and Transport (MoWT) 22. Equipment for Institutional Strengthening. The Chief Engineer discussed the importance of establishing a properly equipped Materials Laboratory and including hydraulic capacity measurement and evaluation tools in order to address climate resilience in Belize. The hydraulic equipment would enable MoWT to monitor and maintain the waterways to improve flow as well as to reduce flooding. The SIF advised the MoWT to provide all the goods needed to ensure that the equipment purchased are operational, for example: air conditioner units as the equipment requires special temperatures. The mission encouraged the MoWT to submit the list of equipment with its technical specifications and the proposed procurement plan as soon as possible to start the procurement of the goods. 23. Training. The Chief Engineer expressed concern about participation in training activities, as there have been recent experiences where the Government determined that the costs were too prohibitive to allow attendance. The SIF recommended that the MoWT identify training activities as early as possible and encourage their CEO to advocate on their behalf during the PSC meetings. The mission stressed the importance of training to develop technical capacity with particular emphasis to climate resilience activities and agreed to bring this to the attention of the Government. 24. Road Maintenance Unit (RMU). The MoWT expects the results of the RMU analysis, conducted by the consultant funded by the Inter-American Development Bank (IDB loan), by end of March Based on the recommendations of this analysis, the MoWT would be able to propose technical assistance activities to develop capacity around road maintenance to be funded out of the loan proceeds by May Institutional Analysis. The Caribbean Development Bank (CDB) has recently contracted a consultant to conduct an institutional analysis of road management in the MoWT as well as options for road maintenance funding that is expected to take at least six months. Based on the results of the study, the MoWT may propose additional technical assistance activities to be funded out of proceeds of the loan. Project Management 26. Staffing. a. Project Coordinator. The Project Coordinator was hired in February b. Procurement. The Procurement Officer will be leaving the Project on March 19, The SIF is currently reviewing CVs of candidates for the position and submit a recommendation for Bank no objection by April 30, Until a Procurement Officer is recruited, the Senior Accounts Officer at the SIF will serve in the capacity of the procurement officer. In addition, the SIF has proposed developing a procurement team, similar in structure to the Financial Management (FM) 6

7 team, to provide procurement support across all projects. The procurement team will have a Sr. Procurement Coordinator who will provide technical and strategic guidance as well as serve as quality control in line with the approach previously discussed and agreed with the Bank. SIF will provide proposed TOR for review of the Bank by March 27, c. Project Engineer (2). The MoWT and SIF will wait until closer to the design stage to determine whether a second Project Engineer would be required and if so what would be the TOR. 27. Coordination and Communication with Implementing Agencies. The mission underlined the need for the PMU to ensure frequent and effective communication with SIF and with the technical ministries so as to resolve any implementation issues arising in a collegial and timely manner. The PMU should also ensure that all progress reports are prepared and delivered in a timely manner and shared with the Bank team where required or appropriate. Contingency Emergency Response Component (CERC) 28. Operations Manual. The Project Coordinator coordinating the preparation of the Operations Manual for the CERC and will submit the document for Bank review by mid-april The MoWT is preparing the table of proposed post-disaster works to submit to the SIF by the end of March The National Emergency Management Office (NEMO) has submitted a list of proposed goods and suppliers, which the SIF will format to be included in the CERC Operations Manual. Yvonne S. Hyde CEO, Ministry of Finance and Economic Development Yoonhee Kim Task Team Leader, World Bank 7

8 Annex 1a: MDP Action Plan Relevant Recommendation/Action Responsible Due Date Activities Agency 1 Project Extension Consider formal request for Project extension with revised implementation schedule PIU End March Environmental Submit Environmental report for the PIU April 10, 2015 Safeguards Dangriga Market operations 3 Works C36: Submit draft final report including final PIU March 27, 2015 design and cost estimates to the Bank for review 4 Works Submit ITB documents for the various Phase PIU Mid-April 2015 II works packages for Bank review 5 Staffing Submit ToR for second Project Engineer PIU March 27, M&E Provide revised table with detailed results PIU March 27, M&E Propose methodology and provide updated indicators PIU Mid-April

9 Annex 1b: Outstanding Action Plan Update from Last Mission (November ) Relevant Recommendation/Action Activities 1 Works Eden Street (W12): Formal hand over of completed works 2 Works Santa Familia (W13): Completion of works 3 Works Almond Boulevard and Chiquibul Street (W18): Completion of works 4 Procurement Corozal Works (W15 and W19): Submit bid evaluation report 5 Works Phase II Large Works: Submit designs to the Bank and TCs for review Provide comments Issue bid documents 6 Phase II Eligibility Review the eligibility criteria and inform any TC if they are noncompliant 7 TA Provide comments on Traffic Management Plan 8 TA Provide comments Physical Asset 9 Environmental Safeguards Maintenance Plan Dangriga Market: Ensure that installation of soak-aways, grease traps, and septic tank are properly installed, by on-site supervision during the process. Undertake a baseline water quality analysis of the ambient water quality in Dangriga Canal and upstream. Install siltation barrier to prevent solid waste in the canal from entering the open sea. Responsible Agency PIU/ Consultants PIU/ Consultants PIU/ Consultants Due Date Mid-November End-November Mid-December PIU November 21, PIU World Bank PIU Mid-November Mid-December Mid-January, 2015 PIU January 2015 (ongoing) WB WB PIU End-November End-November Timing dependent on construction schedule First sampling by end-july Prior completion civil works to of Status Works handed over, under defects liability Works handed over, under defects liability Works handed over, under defects liability Contract awarded, works under implementation Draft final report to be submitted March 2015, review ongoing. Issuance of bid documents delayed On-going Completed Completed Completed Completed Completed Environmental reports at conclusion of construction have been sent to the Bank. 3-month operations report will be sent by April 10, Environmental Safeguards Future sub-projects must have a brief EIA (where required by PIU Prior to commencement Ongoing 9

10 Phase II sub- Projects GoB environmental regulations and/or World Bank Ops) and/or an EMP checklist prepared and disclosed prior to the start of works. Consultation with local stakeholders on the EIA/EMP must take place and be documented in an annex to the EIA/EMP. of civil works on Phase II sub- Projects 10

11 Annex 2: CRIP Action Plan Relevant Activities Recommendation/Action Responsible Agency Due Date 1 Effectiveness Submit Legal Opinion and Subsidiary PMU End-March 2015 Agreement for the IBRD Loan 2 Works Submit the proposed shortlist and draft RFP MoWT/PMU Mid-April 2015 for the feasibility study to the Bank 3 Works Submit draft TOR for the ESIA to the Bank MoWT/PMU April 10, TA Provide details on the proposed TA to the MoWT/PMU May 2015 RMU 5 TA Share the NSDI consultant s Interim Report MNRA/PMU April 2015 and work plan with the Bank for comments 6 TA Provide a formal response on the s from WB March 20, 2015 the MoFED and MNRA on the Land Use TA 7 Staffing Submit recommendation for Procurement PMU April 30, 2015 Officer 8 Staffing Submit TOR for Sr. Procurement Officer PIU March 27, CERC Submit CERC Operations Manual PMU Mid-April

12 Annex 3: List of People Met Belize Social Investment Fund William Lamb Executive Director Ernest Raymond MDP Project Coordinator Wendell Parham CRIP Project Coordinator Nellie Trench Finance Coordinator Christine Lopez-King Senior Accounts Officer Evan Dakers MDP Social Specialist Deon Barker MDP Engineer Jorge Espejo CRIP Engineer Tanya Wright Procurement Officer Therese Arzu MDP Administrative Assistant Savita Burns CRIP Administrative Assistant Ministry of Finance and Economic Development Maria Cooper Economist Ministry of Works and Transport Lennox Bradley Chief Engineer Ministry of Natural Resources and Agriculture Gina Young Deputy Lands Commissioner Alex Anderson Public Relations Officer Roseli Lisbey Civil Society Liaison Officer Zamira Leiva Project Administrator Nelson Link Project Assistant Works Consultancies Carlton Young Works Contractors Robert M. Usher Design Consultant, Phase II Street Rehabilitation Usher Construction (Benque Viejo Phase II works) 12