1

Belize Municipal Development Project (P111928)

Third Implementation Support Mission – April 23 – 27, 2012

Aide-Memoire

I. Introduction

1. A World Bank team comprising Yoonhee Kim, Team Leader, Stephen Brushett, Lead

Transport Specialist, Yingwei Wu, Sr. Procurement Specialist, Afef Haddad, Sr. Country

Officer, Maritza Rodriguez, Sr. Financial Management Specialist, Csilla Horvath, Social

Safeguards Consultant, and Stamatis Kotouzas, Land Analyst Consultant undertook an

implementation support mission of the Project from April 23 to 27, 2012. The mission team

held discussions with Ms. Yvonne Hyde, CEO, Ministry of Finance and Economic

Development, Mr. Godwin Hulse, Minister of Labor, Local Government, Rural Development

and NEM, Ms. Candelaria Saldivar-Morter, CEO MLLGRDNN, Ms. Beverly Castillo, CEO

MNRA, Mr. Wilbert Vallejos, Land Commissioner MNRA, Mr. Crispin Jefferies, Chief

Transport Officer, the newly elected mayors of Belize City, Benque Viejo del Carmen,

Dangriga, Orange Walk, and Punta Gorda as well as the Project Implementation Unit (PIU).

The mission expresses appreciation for the kind support extended to the Bank team during

the mission (A detailed list of people met is provided in Annex 2). A wrap-up meeting was

held with Ms. Hyde and the PIU staff to discuss the key mission findings. The next full

mission is planned for the last quarter of 2012. A technical mission focusing on

environmental safeguards supervision is planned to take place before the end of June 2012.

2. 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 publically disclosed once finalized.

3. Key Project data and Performance Rating

Key Project Data

Key Performance Ratings

Previous

Rating

Current

Rating

Board Approval

Date

September

16, 2010

Progress towards

achievement of Project

Development Objectives

Satisfactory Satisfactory

Effectiveness

Date

January 25,

2011

Overall Implementation

Progress

Satisfactory Moderately

Satisfactory

2

Closing Date

November

30, 2015

Disbursed US$ 0.91

million

Loan Amount

US$15

million

% Disbursed 6%

II. Implementation Status Overview

4. Since the last supervision mission in November, 2011, the mission notes that the Project

continues to be on its track to meet the development objectives. The first Phase 1 work

contract for building rehabilitation in Punta Gorda was awarded and actual work began early

April, 2012. The second Phase 1 contract for Dangriga’s town market is expected to be

awarded, subject to the Bank’s review, by May 11, 2012. A bidding process for street works

in the remaining six TCCs is expected to commence shortly and a contract award for the first

batch of street work is planned for the first week of June, 2012. Revenue enhancement TA is

proceeding satisfactorily and demonstrating concrete results and impact on the ground. The

scope of other TA components has also been agreed and a procurement process for the TA

components will commence shortly. However, the mission also notes challenges associated

with keeping the project’s implementation plan and disbursement on target. In particular,

there is a room to improve project management and procurement capacity within the PIU. In

order to address adequately an increasing demand for the project’s engineering review and

procurement process, it was agreed that additional engineer and a procurement officer will be

recruited.

III. Implementation Status by Project Component

Component 1: Municipal Infrastructure Investments

5. Phase 2 Investment The mission discussed the importance of mobilizing Phase 2

investment preparation and starting a consultation process to prioritize municipal investment,

in line with the project cycle outlined in the operations manual, before the end of 2012. It

was agreed that the PIU will engage with the TCCs for investment prioritization shortly after

the procurement process for the first batch of street works (shopping) is completed during the

third quarter of 2012, so that the PSC approval for subprojects could be realized during the

last quarter of 2012. It was also discussed that BSIF will propose to the Bank a revised index

for Phase 2 allocation and updated figures by September, 2012.

6. Review of Street Design and Procurement Process for Works The mission reviewed

Interim Report No. 1 dated April 2012 provided by the design consultant ATA, further to

which the Bank issued its no objection to the recommendations of this report. The mission

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provided recommendations in regard to the packaging and sequencing of the works further to

which BSIF developed the proposal at Annex 4. The proposal provides for a mix of

contracts of interest to small and medium scale contractors through respectively shopping

and NCB procurement. A first round of shopping will start its bidding process by May 4,

2012 (within the revised ceiling of $150,000 per package). There will be two NCB packages

of around $1,300,000 with a further round of shopping. All the street works packages will be

contracted out by early September, 2012. The BSIF will provide a final proposal for the

packaging and sequencing to the Bank for the Bank team’s information. It is recognized that

though this is an efficient and economic solution for the works, it is likely to increase in the

time requirement for supervision services. Based on agreement reached during the mission,

BSIF will present two NCB bid packages to the Bank for procurement prior review by May

21, 2012 and June 4, 2012 respectively.

7. Compliance with eligibility criteria for Phase 2 Investment: The mission observed that

most of TCCs have complied with the eligibility criteria such as sending monthly reports to

the MLG and publishing their budgets or reducing overdraft facility maintained by the TCC.

However, it was also noted that other eligibility criteria such as the adoption of municipal

growth plans or asset management plan and budget may not be feasible considering current

status of the procurement process for the relevant TA consultancy. Hence, the revision of

the criteria may be warranted, for instance, from ‘adoption’ of municipal growth plans, to

‘initiating’ the formulation of municipal growth plans. In addition, it was discussed that the

eligibility criteria related to monthly council meetings should be clarified and modified so

that it is consistent with the existing national law. Finally, it was agreed that the eligibility

criteria for Phase 2 investment will be further reviewed and agreed during the next

supervision mission planned for the last quarter of 2012.

8. Technical review of ongoing works

a. Pilot Works in Belmopan and San Ignacio/Santa Elena (W1/W2 and C1) The

mission carried out a site visit on April 26. The pilot projects have helped to bring

about site specific traffic management improvements and also provided useful lessons

to be applied in the design and contracting of the street improvement works. Specific

note is made of the following: redesign and construction of the vehicle ramps has

been completed to provide a more acceptable gradient based upon the experiences in

Santa Elena; and pending task to redo street marking in Belmopan and San

Ignacio/Santa Elena due to deficiencies in the quality of paint.

b. Punta Gorda Town Hall Building Improvement (C2 and W3) and Dangriga

Town Market Improvement and Expansion (C3 and W5). Work on the

reconstruction of the Punta Gorda town hall and administrative buildings began April

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10 with Coleman Construction Ltd as the contractor. The contractor has raised the

need for increased work on the roof, but this will fall within the current line items and

provisional sum provided in the contract. Agreement has been reached with the

council to vacate the buildings during construction which should help to keep

construction on time schedule. For the rehabilitation and extension of the Dangriga

market, the procurement process is still ongoing (see Procurement section for more).

Since the previous mission the design has been revised and the decision was made to

complete the project in one rather than in several phases with an estimated cost of

BZ$1.47 million.

Component 2: Technical Assistance and Capacity Building for TCCs, MLLGRDN and

MNRA

9. Revenue Enhancement TA The mission was pleased to note an excellent progress in the

implementation of revenue enhancement TA. The mission was informed that revenue

enhancement work plan will be first implemented in Dangriga as a pilot and the same will be

rolled out to the remaining municipalities. Next mission for the international consultant is

planned for the third quarter of 2012. Furthermore, during the meeting with the newly

elected mayors, the mayor of Belize City expressed a keen interest in receiving the Bank’s

support on accessing to local capital market. To continue to support the credit worthiness of

Belize’s TCCs, the Bank team will explore mobilizing additional resources through a Trust

Fund (e.g. PPIAF) by August, 2012.

10. Asset Maintenance Plan The mission reviewed the terms of reference which had previously

been agreed. The mission recommended that the activity be pursued as a two phase process –

a first phase to focus on the institutional and legal dimension in order to properly and fully

identify infrastructure for which the municipalities are responsible and for which national

government is responsible, and also to analyze the existing draft national maintenance plan; a

second phase to carry out the required inventory and estimations. BSIF will submit end of

first week of May the revised TOR and proposed work plan for no Bank objection. There is

no change to the overall budget for the activity.

11. Municipal Growth Plans. The mission was informed that consulting service for

“development of growth plan” under QCBS procedures is pending with finalizing short-

listing report by BSIF, since receiving 16 EOIs on February 9th

, 2012. BSIF will expedite

the process and submit both the report and draft RFP for Bank’s clearance by May 11, 2012.

12. Traffic Management TA. The mission reviewed the status of the proposed TA with BSIF,

Local Government Officer and Chief Transport Officer. Further and final changes to the

TOR were discussed. BSIF are to submit by end of first week of May the revised TOR for

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Bank no objection as well as prepare an EOI notice. It was agreed that public education and

awareness as regards to road safety should be retained. It was also agreed that team

composition should change to better align with the expected outputs of the consultancy, i.e

team leader to be a traffic management specialist transferring some responsibility to a junior

consultant for the production of manuals and guidelines, combine the social communications

and education roles. There is likely to be a reduction in the budget for the activity as a result

of the changes.

13. National Land Use Policy Planning Framework and Urban Boundaries. The Mission

discussed with the MNRA the National Land Use Policy and Integrated Planning

Framework, which was endorsed by the Cabinet in November 2011. The Planning

Framework provided for the establishment of a National Land Use Policy Office and Local

Land Use Planning Committees to draw National and Local Land Use Plans respectively.

The MNRA shared some concerns about the costs and capacity constraints of adopting the

framework in its entirety and further indicated that its Policy Planning unit will outline which

recommendations can be implemented within the existing structures of the MNRA. The

mission was informed that the progress has been made towards the expansion of urban

boundaries in every TCC, other than Belize City and Belmopan. The mission was pleased to

note that the initiative of the MLLGRDNN CEO led to the Physical Planning Section of the

MNRA forwarding the proposed urban boundary maps to the MLLGRDNN for further

submission to the Cabinet.

14. In addition, a cadastral information-sharing Memorandum of Understanding (MoU) between

the MNRA and TCCs is currently being developed. The MoU will delineate the roles and

responsibilities of both the MNRA as well as the TCCs, including the protocol for TCCs

cadastral database requests (especially land registry information) and the frequency of

cadastral updates available. The mission emphasized the pertinence of up-to-date, high-

quality, and efficient cadastral information-sharing for the upcoming urban growth plans as

well as for the TCCs revenue enhancement efforts.

Component 3: Project Management

15. Project Management. In order to ensure an effective project management, the mission

emphasized the importance of better defining the roles and responsibilities between the

Project Coordinator and the Procurement Officer. It was discussed and agreed that the PC

will take a more proactive and leading role in all procurement process, by monitoring on-

going procurement processes and keeping the process on schedule; providing technical input

and cost estimates in each process of compiling the procurement documents; and organizing

and leading the work by Evaluation Committee with PO’s guidance. Similarly, PO is

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responsible for drafting key bidding documents and ensuring overall quality and compliance

with the process/documents. BSIF Executive Director agreed to provide additional and closer

supervision to the overall project implementation in the next few months when work

contracts and consulting services are procured and mobilized.

16. Recruitment of Procurement Officer and Engineer. The mission reviewed the existing

capacity of the PIU to implement the project’s procurement process and found that there is

room to improve procurement capacity especially with the growing procurement workload

within the PIU. As a solution to strengthen the capacity of procurement, it was agreed that

the PIU would recruit additional procurement officer. In addition, the mission noted that

hiring of contract management staff as recommended in PPR report will be completed by end

May, 2012. Similarly, it was agreed that additional engineer (preferably with previous

experiences in environmental management) would be recruited consistent with the original

project’s design. The PIU will send the ToRs for the procurement officer and engineer by

May 4, 2012.

17. Communication Strategy. The mission and BISF discussed developing a communications

strategy for BSIF to better promote and sensitize activities supported under the MDP among

public (direct and indirect beneficiaries of town councils as well as political representatives).

It was agreed that a draft communications strategy will be submitted to the Bank for review

by May 12, 2012. The strategy should outline the overall objectives, identify target

audiences to cover under the strategy, articulate key messages to deliver for different

audiences throughout the communications campaign, and specify a methodology and various

instruments to reach out to target audience. The Bank team will seek and mobilize additional

support to assist BSIF in drafting the communications strategy and also bring an expert to

review and provide a set of recommendations on the implementation of the strategy.

18. Training of Projects’ Staff The Bank team recognizes the potential benefits of providing

off-site training to PIU staff in the areas of project management, advanced procurement,

financial management and other related subjects. The Bank team will inform the PIU of

possible training opportunities in the near future including one that is being planned for

fiduciary staff in the region before the end of June, 2012.

Procurement Management

19. Procurement Plan (PP) The mission reviewed the progress of the procurement plan and

agreed to the proposed updates by BSIF based on the need for the implementation of the

project. The updated PP incorporating the agreements shall be submitted to the Bank for no-

objection and publication by May 4, 2012.

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20. Procurement Progress Report. The progress of each package in the PP should be included

in the Project Monthly Progress Report to be prepared by PC. It was agreed that any

activities to be planned by the PIU before next updates of PP (other than the infrastructure

packages) should be cleared by the TTL via correspondence in terms of procurement method

with cost estimates and included in the monthly report.

21. Procurement Supervision. The mission reviewed the on-going procurement processes and

contracts and detailed summary is provided in Annex 5.

22. Procurement Post-review. The procurement post-review (PPR) was conducted during the

mission in November 2011. NCB contracts of under USD300,000 and all contracts via

shopping will be subject to post review by the Bank.

Financial Management

23. Internal Controls: The mission found the overall financial management of PIU and BSIF

satisfactory. The project’s financial monitoring reports have been submitted to the Bank on

time, reconciled with Client Connection and made public in the BSIF webpage. The mission

reviewed the selected supporting documents and found them adequate, including original

invoices with “paid” stamp and the evidence of reception acknowledged by authorized

officers. The Project’s internal control looks sound and follows the Project Operating

Manual.

24. To further enhance internal control, the mission suggests that the FM staff be included in the

Bid Evaluation Committee, in order to ensure the adequate analysis of bidders’ financial

proposals and other related information in the financial proposal. The mission noted a need

to fully document the project files by inserting the payment and delivery clauses of the

contracts. This task will be retroactively done, to be completed by May 4th

.

25. Disbursement: Withdrawal applications (WAs) are timely submitted, although the

implementation progress measured by disbursement is low. As of March 31st, the Project has

disbursed US$919,531.53 or 6%, excluding commitments and $616,317.51 advanced to the

Designated Account, and commitments. Use of funds by category as of March 31st is

provided in Annexes 7, 9 and 10. E-disbursement / e-signature program is soon to be

implemented, estimated by July 2012 and the Bank team will provide necessary guidance to

set up the e-disbursement/signature program by July, 2012. The mission notes that the

electronic system is faster, safer, and provides enhanced features.

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26. Reporting: Project reporting is on track, using the agreed format and reconciled with Client

Connection. Jointly with the Project FM staff, the mission team developed a template for user

friendly budgetary reports to further enhance monitoring of quarterly, yearly, and life of

Project’s financial information. This will complement the financial reports to be posted on

BSIF website as well for public access.

27. FM IT System: BSIF continues to use QuickBooks for recording Project transactions. It

was agreed to enhance the integrated financial management information system by installing

Quickbooks procurement module and getting an upgraded version. This task is expected to

be completed o/a August 31st. This would allow to record transactions on accounts payable

and to keep records according to International Accounting Standards for the Public Sector.

Furthermore, management would have on-line information on Project commitments. It is a

key to maintain comprehensive information of all aspects of the financial management cycle.

28. External Audit: The Project Audit Report for last period April 2010/March 2011 is already

published on BSIF webpage, and in Bank’s extranet (consistent with the access to

information policy). The mission notes that the PIU adequately implemented

recommendations made by the auditors to enhance the BSIF’s internal control. Currently all

of them resolved and closed. Attached Updated Action Plan for the period as of April

11/March 12.

Social Safeguards

29. Site visits to subprojects in Belmopan and Dangriga and the review of the Corozal Town

subproject confirmed that the subprojects in TCCs have made important progress in

adequately addressing the needs of the affected stakeholders in line with the Bank's

resettlement policy. The BSIF previously presented advanced drafts of the Abbreviated

Resettlement Plans (ARP) for all three subprojects. Accordingly, the ARP for the Corozal

Town subproject is now considered finalized after agreements between the five affected

stakeholders and the new Town Council were signed and submitted to the Bank (dated

03/27/2012). The mission reiterated that none of the vendors will suffer from income loss

during and after their temporarily relocation and they will be provided adequate assistance

during the process.

30. For the Dangriga subproject, the mission reconfirmed that none of the 38 affected vendors

will suffer from income loss due to temporary and/or permanent displacement of their

businesses. 8 people (4 families) who otherwise would have faced loss of income under the

local 'one stall per family' policy, will be provided with one additional stall each. To facilitate

a fair process and address some vendors' concerns about their final stall location in the new

market extension, the Town Council is proposing a lottery process. The Dangriga subproject

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ARP is now considered finalized after all outstanding issues were clarified and the new

Mayor endorsed (dated 04/02/2012) the previously signed agreements between affected

stakeholders and the former mayor. The mission was informed about the new Town

Council's future PR media strategy to regularly inform and consult the general residents

about the subproject, to commence early-mid May. The creation of a local project

monitoring is underway in all town councils while mediation committee is being formulated

in the town councils where the ARPs are being prepared.

31. Affected stakeholders of the Belmopan subproject signed an agreement with the Mayor and

the Chief Transport Officer about overall arrangements of their temporary and permanent

relocation during and after the works. The BSIF agreed to make final revisions on the plan,

specifically: i) to update the actual number and identity of all affected taxi drivers, to be

submitted by May 15, 2012 ii) to carry out a new and complete census of all affected

stakeholders, incl. taxi drivers earlier not listed in the ARP, in order to better understand each

person's income vulnerability. The data would also inform a transparent decision-making

process in selecting which stakeholders need to relocate permanently after the works. Final

data to be submitted by June 1st, 2012.

32. It was agreed that BSIF will work with the Belmopan City Council to ensure an equitable

process in selecting the stakeholders for permanent relocation. To this end, the mission

recommended again to offer stakeholders particular incentives to make a permanent

relocation more attractive. The suggestion is a waiver of accruing annual license fee

payments for a reasonable time period (1-2 years), which BSIF agreed to suggest to the City

Council. The mission also visited three alternative permanent relocation sites for the taxi

drivers in Belmopan to better assess the sites' feasibility for future income restoration. It was

agreed that BSIF will continue to discuss these and other possible options with the City

Council and the drivers as to identify the most feasible long-term alternatives for affected

stakeholders.

33. In order to properly document the ongoing consultation process and facilitate community

participation, BSIF agreed to incorporate stakeholders' concerns and comments in future

meeting reports and share those with all parties involved. It was also agreed that BSIF will

discuss with the TCCs the need for assembling a monitoring and grievance committee with

the key participation of local community members.

34. Environmental Safeguards The Bank team will confirm the timing of next supervision of

environment safeguards by May 11, 2012.

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________________________________ ____________________________

Yvonne S. Hyde Yoonhee Kim

CEO Ministry of Finance and Task Team Leader, World Bank

Economic Development

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Annex 1: Action Plan

Relevant Activities Recommendation/Action Responsible

Agency

Due Date

1 Project

Implementation

Start bidding process for the first

round of shopping for street

works

PIU By May 4,

2012

2 Send to the Bank a final Bid

Evaluation Report for Dangriga

Town Market Works

PIU By May 11,

2012

3 Complete the procurement

process for first batch of street

works (shopping)

PIU By first week

of June, 2012

4 Send to the Bank for no-

objection the two NCB Bid

packages

PIU/WB By May 21,

2012 and

June 4, 2012

respectively

5 Propose to the Bank a revised

Index for Phase 2 Allocation and

updated figures

PIU By

September

12, 2012

6 PSC approval for subproject of

works for Phase 2 Investment

PSC/PIU Last Quarter

of 2012

7 Complete procurement process

for all Phase 1 street works

packages

PIU/WB No later than

September,

2012

8 Propose the revised eligibility

criteria for Phase 2 Investment

for discussion with the WB

PIU Last Quarter

of 2012

9 Revenue

Enhancement

Explore and mobilize additional

resources through a Trust Fund

(e.g. PPIAF)

WB No later than

August, 2012

10 Asset Maintenance

Plan

Submit revised Asset

Maintenance ToR and proposed

work plan for no Bank objection

PIU By May 4,

2012

11 Municipal Growth

Plans

Submit report and draft on

municipal growth plans RFP for

Bank’s clearance

PIU By May 11,

2012

12 Traffic Management Submit Final ToR and EOI

Notice for Traffic Management

TA

PIU/WB By May 4,

2012

13 Project Management Send the ToR for procurement PIU/WB No later than

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officer and engineer May 4, 2012

14 Complete hiring of procurement

officer and engineer

PIU/WB By end of

August, 2012

15 Complete the hiring of Contract

Management position

PIU/WB No later than

end of May,

2012

16 Communications

Strategy

Submit a draft communications

strategy to the Bank for review

PIU No later than

May 12,

2012

17 Mobilize additional support in

assistance to BSIF

communications strategy

WB By end of

June, 2012

18 Training of Project’s

Staff

Explore possible training

opportunities for PIU staff

WB Ongoing

19 Procurement Submit updated Procurement

Proposals with incorporated

agreements for no-objection

PIU No later than

May 4, 2012

20

Financial

Management

Fully document the Project files,

by inserting the payment and

delivery clauses of the contracts.

PIU No later than

May 4, 2012

21 Implement e-disbursement, e-

signature program

PIU/WB

No later than

end of July,

2012

22 Upgrade and Integrate financial

management information system

–QuickBooks

BSIF On or About

the end of

August, 2012

23 Send a disbursement projection

for the rest of the year

BSIF By May 11,

2012

24 Social Safeguards Update the actual number and

identify all affected taxi drivers

BSIF No later than

May 15,

2012

25 Carry out a new and complete BSIF No later than

13

census of all affected

stakeholders for a review of

income vulnerability

June 1, 2012

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Annex 2: List of People Met

Belize Social Investment Fund

Daniel Cano, Executive Director

Ernest N. Raymond, Project Coordinator

Lemuel Palacio, Procurement Specialist

Christine Lopez-King, Sr. Accounts Officer

Evan Dakers, Social Specialist

Nellie Trench, Finance Unit Coordinator

Lionel Jimenez, Engineer

Clifford King, Local Government Officer

Keisha Rodriguez, Urban Planner

Ministry of Finance and Economic Development

Yvonne Hyde, CEO

Ministry of Labor, Local Government, Rural Development and NEM

Godwin Hulse, Minister

Candelaria Saldivar-Morter, CEO

Ministry of Natural Resources and Agriculture

Beverly Castillo, CEO

Wilbert Vallejos, Land Commissioner

Gina Young, Physical Planning Section (Lands Department)

Ministry of Works and Transport

Crispin Jefferies, Chief Transport Officer

Mayors

Darrell Bradley, Mayor, Belize City

Miguel Velasquez, Mayor, Benque Viejo del Carmen

Gilbert Swaso, Mayor, Dangriga

Anthony Fuentes, Mayor, Punta Gorda

Kevin Bernard, Mayor, Orange Walk

Town Councils

Howard Melendrez, Councilor, Dangriga

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Fedelis Mejia, Works Manager, Dangriga

Miley Garcia, City Administrator, Belmopan

James Robinson, Technical Adviser, Belmopan

Kevin Jones, Municipal Traffic Manager, Belmopan

Michael Moore, Supervisor of Bus Terminals, Belmopan

Candice Burke, City Administrator, Belize City

Alberto Guerra, Town Administrator, Orange Walk

Annex 3: List of site visit locations and dates

Belmopan – April 26, 2012

Santa Elena – April 26, 2012

Dangriga - April 24, 2012

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Annex 4: Suggested Packaging for Street Works

Order of procurementName of packages Procurment Type Name of Streets in Package Estimated Cost of Streets (US$)Timeline

First W4 Shopping Belmopan - Bus 1 way 85865 make long listSend Qual Inf Form Qualification EvaluationInvite bids Evaluate Bids Sign Contract

Belmopan - Bus Parking east 58217 30-Apr 2-May 14-May 16-May 30-May 5-Jun

W6 Shopping San Ignacio - 18th 120937

W7 Shopping Orange Walk - Avilez 56575

Orange Walk - Tangerine 46078

W8 Shopping Corozal - Zuzuc 118766

Develop documentBank review bid doc advertise Start work

Second W9 NCB Benque - Church 186358 7-May 14-May 21-May early-mid aug

Benque - Burns 166856

Benque - Churchill 212251

San Ignacio - Eden 271789

San Ignacio - West 152696

Punta Gorda - Robert Penel 166675

Punta Gorda - Pampano 156272

Third W10 Shopping Orange Walk - San Ignacio 117826 mid juneearly july mid july

Fourth W11 NCB Belmopan - Nim Li Punit 226942

Belmopan - Hummingbird 55295

Belmopan - Racoon 136850

Orange Walk - Santa Familia 312609 Develop documentBank review bid doc advertise start work

Corozal - 1st North 318808 late mayearly june early june early september

Corozal - Punta Gorda 242787

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Annex 5: Detailed Review of Procurement Plan

For Component 1, all packages under Phase 1 have been agreed with confirmed methods for

procurement implementation in the procurement plan. The progresses are supervised and next

step implementation agreed with PIU as following:

C1 Consulting services for design and technical inspection has been extended in accordance with

the amendment of W1/2 contract, with no change in contract conditions and price.

W1/W2 Civil works for two pilot TCCs contract under shopping was signed on Aug 25, 2011

and the scope of work was amended in January 12, 2012 cleared by the Bank at addition of

BZ$10,288.60. Completion of work is rescheduled for May 2012.

C2-3 Consulting services for design and technical inspection for buildings is on-going, with

design completed. The supervision is started, but duration of the contract requires extension for

construction 12 months period for W5 for Dangriga.

W-3 Civil works contract for PG under NCB procedures was signed on March 22, 2012 at

USD212,575, with completion period of 4 months.

W-5 Four bids for the civil works for Dangriga under NCB procedures were received on April 5,

2012. Post qualification for the lowest evaluated bid, which is within the cost estimate, is

expected to be completed by the PIU in mid of May 2012.

For Component 2,

C5-10 For consulting services on design of six TCCs’ street rehabilitation, the no-objection to

signing the contract by the Bank was given on Oct 31, 2011 and the contract was signed on

November 28, 2011. Design has been largely completed by ATA and the consultancy is on

schedule.

C5-10 The selection of consulting services for technical Supervision of six TCCs’ street

rehabilitation was carried out under QCBS. Only 3 firms out of the 6 short listed eventually

submitted proposals. The Bank provided No Objection to the final revised Bid Evaluation

Report on April 26, 2012.

The procurement of computer equipment for pilot TCCs under NCB procedures subject to post-

review has been changed from WB financing to GOB financing. Technical service for installing

and connection for network will start for procurement based on technical preparation. The direct

contracting for quick book is under preparation of contract subject to Bank’s prior review.

Physical asset maintenance consultancy is added to PP under QCBS, for which TOR and cost

estimate should be approved with Bank on the technical side.

For Component 3, contract for two vehicles for PIU site work at US$49,300 under NCB

procedures. The goods have been delivered (used by PIU coordinator and BSIF driver).

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Annex 6: Status of Audit Recommendations

Issue Audit Recommendation 2011 SIF Response April 2011 – March 2012

1. Accounting treatment

of interest income &

administrative

income needs to

improve.

Debit interest income (not the interest

expense usage account) and credit the

respective bank account when funds are

returned to GoBZ. On subsequent receipt

of the funds from GoBZ, the respective

bank account should be debited and the

administrative income account should be

credited.

Agreed. BSIF prepared journal entries

to make adjustments and now the

accounting records show accurate info

related to interest and administrative

income.

Resolved and closed.

2. Minutes of the WB

PSC and SIF BOD

meetings need to be

signed by designated

signatories.

Minutes be signed in a timely fashion as

evidence of approval of the respective

minutes.

SIF commits to instituting the practice

of having the minutes signed within 2

weeks after confirmation of the minutes

at the subsequent PSC and BOD

meetings.

Resolved and closed – all PSC

meeting minutes have been signed

after approval at subsequent

meeting.

3. Funds reimbursed by

CDB to SIF should

be returned to

Government on a

timely basis.

GoBZ should provide the necessary

funding to SIF in order to allow

reimbursements on a timely basis.

SIF will engage in discussions with the

relevant Ministries to ensure timely

allocation of subvention.

Resolved and closed - GoBZ has

provided the necessary funding to

allow reimbursements on a timely

basis.

4. Monies from

respective funds are

being co-mingled.

Monies from respective funds should not

be co-mingled.

SIF will engage in discussions with the

relevant Ministries to ensure timely

allocation of subvention to avoid the

practice of co-mingling.

Resolved and closed – GOB has

provided necessary subvention to

avoid practice of co-mingling.

5. Formalize its

management of

projects funded

through the

Arrangement between the GoBZ and SIF

be formalized in respect of usage of

funds under the CDI Program.

The CDI program will be concluded

during 2011/2012 financial year. For

remaining projects Caribbean

Development Bank guidelines will be

Resolved and closed – Program has

concluded.

19

Commonwealth Debt

Initiative Program.

used.

6. BNTF Operations

Manual (OM) should

be amended.

Appendix 5.18 “Consultant’s Procedures

Flow Chart” of the BNTF OM be

amended to reflect current practice.

SIF proposes for BNTF OM to be

amended to allow for both evaluation

modalities presently permitted by CDB

BSIF raised it with CDB and BSIF

will follow-up with donor until

amendment is completed.

7. Supporting

documentation not

maintained in

respective sub-project

files.

Each of the steps undertaken by SIF be

documented and maintained in the

respective sub-project files.

The absence of preliminary

assessments from a file indicates

weakness in the filing of documents by

SIF Officers as opposed to a deviation

from the project cycle.

Resolved – TOR for SIF project

officers were amended in 2011 to

address this issue. BMDP has its

own Admin Assistant to ensure

proper doc. filing.

8. Procurement

procedures not

followed.

Procurement procedures should be duly

followed.

World Bank no objection and

Contractor General concurrence were

sought retroactively in one instance.

Resolved and closed – WB no

objection and contractor general

concurrence are received before

contract signing.

9. Updating of SIF’s

website.

SIF should upload the required project

documentation to its website.

SIF website is now operational and

content now being uploaded.

Resolved and closed - all relevant

BMDP information are posted on

BSIF website.

10. Bid Evaluation

Committee not

established per OM,

BMDP.

The same committee from BSIF should

not be used for WB projects.

The Bid Evaluation Committee as

specified in OM is now being adhered

to.

Resolved and closed.

20

Annex 7: Monitoring and Evaluation

Data Collection Matrix

Project /

Intermediate

Outcome

Indicators

Baseli

ne

Target Values Data Collection and Reporting

Comments YR 1 YR 2 YR 3 YR 4 YR 5

Frequen

cy and

Reports

Data

Collection

Instrume

nts

Responsibil

ity for Data

Collection

Number of

beneficiaries with

access to improved

quality of basic

municipal

infrastructure(direct

and indirect project

beneficiaries(numb

er),of which is

female(percentage).

0

Direct Direct Direct Direct Direct

Annual

Sub-

projects

completio

n reports

PIU-BSIF

The data

collected

in year 1 is

for the

two(2)

Pilot

Projects in

Belmopan

and San

Ignacio/Sa

nta Elena

Mal

e

Fema

le

Mal

e

Fema

le

Mal

e

Fema

le

Mal

e

Fema

le

Mal

e

Fema

le

49

% 51%

31,916 - - - -

Indirect Indirect Indirect Indirect Indirect

Mal

e

Fema

le

Mal

e

Fema

le

Mal

e

Fema

le

Mal

e

Fema

le

Mal

e

Fema

le

49

% 51%

146,172 - - - -

Number of towns

successfully

completing

investments in first

and second phases

0 - - - - -

End of

phase 1

and end

of the

project

Project

Completio

n Reports

PIU-BSIF

21

At least four

TCC’s each have

achieved four out

of seven

intermediate

outcome indicators

of component 2

0 - - - - - Annual

Compilati

on of

different

progress

reports

such as

financial

reports

submitted

to

MLLGRDN

N

PIU-BSIF

Intermediate

Outcome

Indicators

Baseli

ne YR 1 YR 2 YR 3 YR 4 YR 5

Frequen

cy and

Reports

Data

Collectio

n

Instrume

nts

Responsibi

lity for

Data

Collection

Km of drainage

financed under the

project

0 - - - - - Semi-

annual

Sub-

projects

completio

n reports

PIU-BSIF

Km of rehabilitated

roads under the

project

0 - - - - - Semi-

annual

Sub-

projects

completio

n reports

PIU-BSIF

Number of

improved

intersections under

the project

0 5 - - - - Semi-

annual

Sub-

projects

completio

n reports

PIU-BSIF

The data

collected

for year 1

reflects

only the

pilot

projects

22

Number of traffic

signs financed

under the project

0 26 - - - - Semi-

annual

Sub-

projects

completio

n reports

PIU-BSIF

The data

collected

for year 1

reflects

only the

pilot

projects

Number of towns

and cities that

comply with terms

and conditions of

subproject

agreement

0 - - - - - Semi-

annual

Sub-

projects

completio

n reports

PIU-BSIF

Number of towns

and cities that have

adopted MGP

0 - - - - - Semi-

annual

Minutes

of Town

Hall

Meetings

MLLGRD

N

Number of towns

increasing own

revenue collection

Local

revenu

e

collect

ed in

2009

- - - - - Semi-

annual

Financial

Reports

submitted

to

MLLGRD

N

MLLGRD

N

Number of towns

with qualified

accountants on staff

0 6 - - - - Semi-

annual

Towns

and

Councils

submit

informatio

n to

MLLGRD

N

MLLGRD

N

Belize

City and

San Pedro

Town

need to be

included

Number of towns

submitting required

financial reports

0 7 - - - - Semi-

annual

Financial

Reports

submitted

to

MLLGRD

N

Belize

City and

San Pedro

Town

23

MLLGRD

N

need to be

included

Number of towns

using a

computerized

financial reporting

system

0 1 - - - - Semi-

annual

Reports

submitted

to PIU PC

MLLGRD

N

Belize

City and

San Pedro

Town

need to be

included

Number of towns

with a physical

asset maintenance

plan and

corresponding

budgets

0 - - - - - Semi-

annual

Financial

Reports

submitted

to

MLLGRD

N

MLLGRD

N

Number of towns

with roads and

safety procedures

0 - - - - - Semi-

annual

Reports

submitted

to PIU PC

Number of towns

and city councils

that have received

training from the

Local Government

and Urban Planning

Officers

0 - - - - - Semi-

annual

Reports

submitted

to PIU PC

MLLGRD

N and

MNRE

Number of TCC’s

provided with

spatial data sets

showing land

parcels

0 7 - - - - Semi-

annual

MNRE

Internal

Reports

MNRE

24

Percentage of

subprojects that

meet BSIF’s

service standards in

accordance with the

OM

0 - - - - - Semi-

annual

BSIF PIU

Internal

reports

PIU-BSIF

Procurement and

FM duties are

executed in

accordance with

national and World

Bank guidelines

0 yes - - - - Semi-

annual

BSIF PIU

Internal

reports/

Financial

Audits

PIU-BSIF

25

Annex 8: Use of Funds by Disbursement Category

Amount % Amount % Amount %

1. CS & Non-CS Serv Part A $45,000.00 $91,436.03 $46,436.03 203% $360,000.00 $161,688.33 ($198,311.67) 45% $1,322,500.00 $183,107.60 ($1,139,392.40) 14%

2. GO and Works Part A $271,150.00 $31,427.41 ($239,722.59) 12% $2,310,650.00 $78,167.17 ($2,232,482.83) 3% $10,120,000.00 $78,167.17 ($10,041,832.83) 1%

3. GO, CS, Non-CS, TRN Part B $177,000.00 $22,864.84 ($154,135.16) 13% $708,000.00 $67,241.54 ($640,758.46) 9% $1,050,000.00 $101,739.49 ($948,260.51) 10%

4. GO,CS, Non-CS, OP, TRN Part C $74,534.17 $114,756.88 $40,222.71 154% $384,160.00 $358,305.58 ($25,854.42) 93% $1,670,000.00 $419,660.38 ($1,250,339.62) 25%

5. PPF Refinancing $800,000.00 $359,842.05 ($440,157.95) 45%

7. Premium for Caps/Collars

8. FEF Front End Fee $37,500.00 $37,500.00 $0.00 100%

TOTAL $567,684.17 $260,485.16 ($307,199.01) 46% $3,762,810.00 $665,402.62 ($3,097,407.38) 18% $15,000,000.00 $1,180,016.69 ($13,819,983.31) 8%$0.18 $0.08

BMDP Counterpart Funding

2.1 Works - GOB Town Councils $4,900.00 $1,978.89 ($2,921.11) 40% $86,850.00 $1,978.89 ($84,871.11) 2% $303,600.00 $1,978.89 ($301,621.11) 1%

4. 1 OP, TRN Part C-counterpart funding$4,218.75 $5,133.00 $914.25 122% $49,405.00 $16,426.13 ($32,978.87) 33% $84,375.00 $16,426.13 ($67,948.87) 19%

Subtotal BMDP Counterpart $9,118.75 $7,111.89 ($2,006.86) 78% $136,255.00 $18,405.02 ($117,849.98) 14% $387,975.00 $18,405.02 ($369,569.98) 5%

GRAND TOTAL $576,802.92 $267,597.05 ($309,205.87) 46% $3,899,065.00 $683,807.64 ($3,215,257.36) 18% $15,387,975.00 $1,198,421.71 ($14,189,553.29) 8%

Life of Project (LOP)

AllocationActual-

Cummulative

Variance

GOVERNMENT OF BELIZE - IBRD

Belize Municipal Development Project (Proj. 79580 BZ)

INTERIM UN-AUDITED FINANCIAL REPORT

USE OF FUNDS BY DISBURSEMENT CATEGORY - Amounts in US'00 -

Actuals for and as of quarter ending March 31st, 2012

Actual- Year

to Date

Variance

Cummulative - Year to Date

CATEGORY

Quarter

Budget - Jan -

Mar 12

Actual - Jan -

Mar 12

Variance Budget - Year

to Date

26

Annex 9: Use of Funds by Category

Amount

Disbursed -

US'00

%

Disbursed

1. CS & Non-CS Serv Part A 1,322,500.00$ 1,139,392.40$ 1,230,828.43$ (91,436.03)$ 91,671.57$ 6.9% Expenditure from Jan - Mar 2012($91,436.03)

2. GO and Works Part A 10,120,000.00$ 10,041,832.83$ 10,073,260.24$ (31,427.41)$ 46,739.76$ 0.5% Expenditure from Jan - Mar 12 ($31,427.41)

3. GO, CS, Non-CS, TRN Part B 1,050,000.00$ 948,260.51$ 971,125.35$ (22,864.84)$ 78,874.65$ 7.5% Expenditure from Jan - Mar 12 ($22,864.84)

4. GO,CS, Non-CS, OP, TRN Part C 1,670,000.00$ 1,250,339.62$ 1,365,096.50$ (114,756.88)$ 304,903.50$ 18.3% Expenditure for Jan - Mar 12 ($114,756.88)

5. PPF Refinancing 800,000.00$ 440,157.95$ 440,157.95$ -$ 359,842.05$ 45.0% Closed 31/1/2011

7. Premium for Caps/Collars 37,500.00$ -$ -$ -$ 37,500.00$ 100.0%

TOTAL 15,000,000.00$ 13,819,983.31$ 14,080,468.47$ (260,485.16)$ 919,531.53$ 6%13,379,825.36$

Advance to Designated Acccount (616,317.51)$

Total undisbursed 13,464,150.96$

Total Disbursed 1,535,849.04$ 10.24%

Disbursement Category Explanations

Client

Connection-

Undisbursed

BSIF's Books-

UndisbursedVariance Allocation

For Quarter ending March 31st, 2012

GOVERNMENT OF BELIZE - IBRD

BELIZE MUNICIPAL DEVELOPMENT PROJECT (IBRD 79580 - BZ)

INTERIM UN-AUDITED FINANCIAL REPORT

USE OF FUNDS BY PROJECT CATEGORY - Amounts in US'00

27

Annex 10: Comparison Graphics

28