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Belize Municipal Development Project (P111928)

Mid-term Review Mission – June 10 – 14, 2013

Aide Memoire

I. Introduction

1. A World Bank team led by Yoonhee Kim (Team Leader and Sr. Urban Economist) and comprised of

Maritza Rodriguez (Sr. Financial Management Specialist), Noreen Beg (Sr. Environmental

Safeguards Specialist), Yingwei Wu (Sr. Procurement Specialist), Kimberly Vilar (Social

Development Specialist), Anna Okola (Transport Specialist) and Keren Charles (Operations Analyst

Consultant) undertook the Mid-term Review (MTR) Mission of the Project from June 10 – 14, 2013.

2. The mission team held discussions with Ms. Yvonne Hyde (CEO, Ministry of Finance and Economic

Development), Ms. Candelaria Morter (CEO, Local Government), Mr. Eugene Palacio (Director,

Local Government), Mr. Errol Gentle (CEO, Ministry of Works and Transport), Mr. Lawrence

Sylvester (CEO, Ministry of Housing and Urban Development) Ms. Beverly Castillo (CEO, Ministry

of Natural Resources and Agriculture, MNRA) and Ms. Gina Young (MNRA), the Mayors and Town

Council representatives of Belmopan, Benque Viejo del Carmen, Corozal, Dangriga, Orange Walk,

Punta Gorda, and Santa Elena/San Ignacio, as well as Daniel Cano (Executive Director, Belize Social

Investment Fund, SIF) and the Project Implementation Unit (PIU).

3. The mission carried out site visits for Phase 1 and Phase 2 works in all seven Town Councils as part

of the Mid-term Review Mission. 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 the Project Steering Committee (PSC) to discuss the key findings of the

mission. In particular, the mission focused on reflecting lessons learnt and experiences from the

Project’s implementation up to date and the completion of the Phase 1 program.

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.

5. Key Project Data and Performance Rating

Key Project Data Key Performance Rating

Previous Current

Board

Approval

Date

September 16,

2010

Progress towards

achievement of Project

Development Objectives

Satisfactory Satisfactory

Effectiveness

Date

January 25,

2011

Overall Implementation

Progress

Moderately

Satisfactory

Satisfactory

Closing Date November 30,

2015

Disbursed US$ 2.6 million US$ 4.7 million

Loan Amount US$ 15 million % Disbursed 17% 31%

II. Implementation Status Overview

6. As of May 31, 2013, the Project has disbursed about US$ 4.7 million, equivalent to approximately

31% of the loan amount. Since the last supervision mission in December 2013, the PIU has disbursed

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US$ 2.1 million. Another US$ 2.2 million (including US$ 0.46 million operating cost) has been

committed for the implementation of Phase 1 sub-Projects, consisting of 50% of the total loan.

III. Key Findings from Mid-Term Review Mission

7. Main Achievement of the Project up to date: The mission was pleased to note the following

achievement up to date.

a. The project is well underway to achieve its development objective (to improve access to

basic municipal infrastructure and to enhance municipal management in selected town and city

councils of Belize).

b. The project has completed all Phase 1 investment (except Dangriga market sub-

component), resulting in the rehabilitation of 19 streets (some 7.3 km) and refurbishment of the

Punta Gorda Town Hall

c. Mobilization and implementation of five TA components: Revenue Enhancement,

Financial Management, Asset Management and Maintenance Plan, Urban Development Plan,

Communication Strategy, and Road Safety and Public Awareness. The TA programs have begun

to demonstrate tangible results and benefits to enhance TCC’s capacity for municipal

management. Some examples include: a) color coded land use maps was developed for the seven

(7) municipalities under the BMDP to assist with the consultancy to prepare the municipal

development plans; b) diagnostic report on the performance of their revenue sources including a

comparative analysis of the performance and administration of revenue sources including

property tax and trade license fees; and c) the participation of Mayors, Deputy Mayors and

Administrators of all TCCs in a two-day peer sharing workshop on Best Practices for revenue

collection and management, among others.

d. Phase 2 preparation is well underway according to the implementation plan including

meeting the requirements of the second phase eligibility criteria and counterpart contribution

e. Enhanced project implementation capacity of the PIU in all aspects (technical, financial,

procurement, project management, safeguards policies) and continued institutional efforts to

maintain high level of transparency (e.g. FM disclosure, website, etc). The Bank also

acknowledges guidance and oversight provided by the Project Steering Committee

f. Overall project’s ratings for Progress towards Project Development Objective and

Implementation Progress are satisfactory.

8. Key Recommendations and Lessons Learnt for the Remaining Project Implementation:

a. Phase 2 Project Appraisal and Investment Prioritization: the mission noted that while

investment prioritization was adequately carried out following a consultative and participatory

process, some of the proposed investments appear to lack technical, economic, and financial

assessment. In particular, the proposed project appraisal documents should strengthen alternative

investments that were considered and document better social, economic, technical, and

environmental justification for the proposed investment for TCCs.

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b. Design Review: the mission recommends carrying out a thorough design review

including: a) site visits to validate the adequacy of design; b) sharing site designs with the TCs for

review; c) utilizing external peer review is encouraged to ensure the best quality of designs.

c. Contract/construction Management: the mission stressed the importance of enhancing

contract and construction management by the PIU. Based on the review of Dangriga market sub-

component, the mission recommends adequate documentation of any issues raised during the site

visits by the PIU technical staff; proactive communication and clarification of any contractual

issues by the PIU; and maintaining signed minutes of the discussion between the PIU, contractors

and TCs. In particular, while SIF retains supervision and project management roles (Dangriga,

small works), it is important to maintain logs of instructions to contractors. Such records are

critical not only for the determination of delays in future, if relevant, but also importantly to

ensure compliance and implementation by contractor, and aid in subsequent follow up visits.

d. Capacity building and technical assistance components for TCCs: there is a need to

build a closer dialogue and policy linkage with the Ministry of Local Government and the

Ministry of Natural Resources and Agriculture. In particular, important progress has been made

for revenue enhancement TA (with the support from international and local consultants) and

MLG can play a significant leadership towards accomplishing the objective of the TA and

ensuring that the project’s support for revenue enhancement can be sustained and continued. In

addition, an interim protocol for information sharing relating to land ownership between TCCs

and the MNRA was agreed and the mission recommends following upon and monitoring this

during the project implementation.

e. Ensuring participatory project implementation throughout the entire project cycle:

the mission stressed that the key development impact that the Project aims to achieve is enhanced

transparency and accountability for TCCs. The Project has built several mechanisms to allow this

(e.g. investment prioritization through participatory process, establishing project monitoring

committee and grievance mechanisms, and making financial statement public). The remaining

project implementation should continue to support participatory process and transparency and the

Bank team will provide adequate support as needed.

IV. Implementation Status by Project Component

Component 1: Municipal Infrastructure Investments

9. Completed and ongoing Phase 1 works. The mission visited Phase 1 Project sites under

implementation in all seven TCs (Annex 3 includes a detailed list of site visit locations and dates and

Annex 4 provides implementation status of Phase 1 works.) During the site visits the mission met with

mayors, Town Council representatives, as well as affected stakeholders. The mission found the quality of

construction generally satisfactory and suggested a few minor areas of improvement in safety measures

(such as pavements) and quality of materials used (such as paint for street markings). Key discussion

and issues raised during the site visit are:

a. Belmopan –The Bank concurs with TC Mayor’s recommendation that the SIF shares the site

designs with the Belmopan TCC’s engineer.

b. Belmopan, Benque Viejo del Carmen – The paint on some streets started to fade away,

which indicate that the PIU should evaluate and determine the best paint options for street

rehabilitation works. The Bank recommends following up with contractors and/or putting

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corrective measures for all streets supported under Phase 1. In addition, maintenance options

could be considered to have the roads re-painted regularly.

c. Punta Gorda – The site visit to the proposed Phase 2 streets revealed room for improvement

in the vetting process for sub-Projects. In particular, the selection and prioritization of

Hopeville road, which is expected to benefit directly 86 households, was not clear. Meanwhile,

the West St (VOA Sts), which was considered during the public participation process, was not

included in the prioritized list. The mission emphasized the importance of carrying out

economic, social and technical evaluation, along with community interests and overall public

good in the weighting and final prioritization of sub-Projects.

d. The mission noted some complementary works for Phase 1 street rehabilitation envisaged

under Phase 2, such as sidewalk and additional drainage along the street. The mission

recommended the PIU proceed with the complementary works under a separate shopping

package.

10. Dangriga Market Sub-Component. The mission discussed with the PIU both supervision and

ongoing work contracts in great detail. Site visits to ongoing works for rehabilitation and expansion of

existing market highlighted that no engineer is on site to supervise works and there has been considerable

delay in project construction (40% completion rate as estimated by SIF). The contractor reports that his

team has been working full time with a crew of about 21 men; however, due to ongoing issues related to

non-payment, the crew size is variable. The mission discussed options available for SIF to successfully

complete works without more delay, including possible contract termination and the status-quo. In order

to decide on a way forward, it was agreed that SIF will assess the feasibility and likelihood of the

existing contractor to complete construction without further delay (e.g. assessing financial condition,

credit arrangement, quality of ongoing construction, and revised work plan for completion) by

June, 21, 2013, consult with the PSC and the mayor, and inform the Bank of the proposed steps to

take and solution by the end of June, 2013. With no supervision firm for last several months and

concerns regarding the contractor’s capacity, the mission also noted there is potential that quality of the

works may have been compromised. At the present time, with no supervision firm on board, SIF has

been performing the supervision functions as well as Project Management, leading to potential

contentious scenarios in the attribution of delays between the contractor and SIF.

11. The mission discussed a long pending issue of supervision contract for Dangriga Market. After

the review by the Bank’s team, it was decided that while 100% payments of the contract had been made

to ATA by PIU, deliverables had been only partially made under Interim Report #3 for Dangriga.

Furthermore, it was decided that the PIU had overpaid the supervision firm at the amount of BZ$21,641

with BZ$11,656 overpaid for Interim #3 and BZ$9,985 for final payment. It was further agreed that SIF

will determine any deduction to be applied to the refund taking into account additional visit by the firm

and communicate to the Bank the justification for the final amount for the refund by Friday, June 21,

2013. The case of supervision contact for Dangriga Market highlights the importance of understanding

the difference between time-based and lump sum contracts and improving the SIF’s contract management.

12. Selection of Phase 2 investments: The mission noted that while investment prioritization was

adequately carried out following consultative and participatory process, some of the proposed investments

appear to lack technical, economic, and financial appraisal. In particular, the proposed project appraisal

documents should strengthen alternative investments that were considered and document better technical,

economic, and environmental justification for the proposed investment. The mission recommended the

PIU review all the selected sub-projects, carry out additional assessment that would justify all the

proposed subprojects (e.g. value for money), document social, economic, environmental benefits of the

proposed projects, adjust sub-projects prioritization following the analysis, and carry out another public

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consultation process as needed to close the loop on the final investment programs. It was noted that

enhanced project appraisal document and investment prioritization would ensure greater level of

legitimacy and transparency for the project. It was agreed that the PIU will provide a revised phase 2

project appraisal documents reflecting earlier comments by the Bank communicated by email and

observations made during the mission by July 31, 2013 for the Bank’s no objection.

13. Eligibility Criteria for 2nd

Phase Investment; the mission was informed that all the TCCs have

met the required eligibility criteria for the 2nd

phase investment. They include:

a. That the process for the formal adoption of a Municipal Growth Plan by the Town or City

Council after a conducting a series of prior public meetings have been initiated. That the process

for the preparation of a physical asset maintenance plan and corresponding budget and

incorporation of maintenance budget in the Annual Town or City Council budget have been

initiated

b. Conduct monthly Council meetings of which at least one should be open to the general

public every two months starting from October 2012

c. Conduct public Town meetings at least once every six months as required by law starting

from October 2012

d. Submission of monthly financial reports to MLLGRDINEM and the publication of such

reports as required by law starting October 2012.Reduction in the overdraft facility maintained by

the Town or City Council to within 90% of the overdraft limit as approved by the Ministry of

Finance by Q3 2011 and for any investment applied for after July 31, 2012 a further reduction to

within 75%; and

e. Hiring of a qualified accountant using a transparent selection process based on clearly

defined qualifications and experience and using Terms of Reference previously agreed with BSIF

and the WB.

It was agreed that the PIU will provide the Bank team with the evidence of meeting all the 2nd

phase

investment criteria by June 28, 2013. It was reiterated that no sub-project can proceed without meeting

the eligibility criteria.

14. Lump-sum based supervision –The mission noted the recommended approach for Phase 2

supervision is time based contracting method. SIF noted difficulties, mainly capacity constraints for the

oversight of such contracts. SIF confirmed that to date, the majority of contracts are implemented lump

sum given the relatively small size of contracts (typically under ½ million). The mission agreed that

recognizing the concerns of SIF, and the relatively small contracts envisioned, lump sum may be

considered. In this scenario, the mission recommended more detailed estimates on the part of SIF to have

better comfort on the expected supervision effort and thus manage better upfront costs estimates, which

may also revise upwards to reflect risk transfer to consultant (who assumes full risk for construction

delays, which could be caused by any number of factors).

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

15. Revenue Enhancement (RESP) and Financial Management: The Revenue Enhancement TA

has advanced well and has made a satisfactory progress. Some specific achievements up to date are:

LGO and UPO are located in the Ministries of Local Government and Natural Resources: Terms

of Reference and Memorandum of Understanding between BSIF and the Government Ministries

have been agreed to. Agreements include office accommodation and sharing of transportation

and accommodation during field work.

LGO worked closely with TCCs, MLG, SIF and Consultants to implement the following capacity

building initiatives between April 2011 and May 2013: Revenue Enhancement Support Program,

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Computer and Information Technology Network Upgrade Support, Training in QuickBooks

Usage and Municipal Development Plans.

LGO Terms of Reference revised at the request of the Ministry of Local Government in March

2013 to reflect greater alignment with specific project related activities.

Terms of Reference developed for the procurement of the technical expertise necessary to

develop the Municipal Development Plans.

Color coded land use maps developed for the seven (7) municipalities under the BMDP to assist

with the consultancy to prepare the municipal development plans.

Activities coordinated with consultants, government agencies, Non-Governmental Organizational

and other relevant stakeholders involved in developing the Municipal Development Plans.

16. The mission was informed that final reports on the progress and outcome under the TA

consultancy is under preparation and the team will support an international expert during the final

consultation and dissemination of the final report scheduled end July, 2013. In addition, the team noted

that the training for the use of QuickBooks for accounting has improved financial management for the

TCs. The Bank noted, however, a need to integrate revenue side management together with expense side

and proposed working during the remaining project implementation to ensure the interface and integration

of the financial system in TCCs. Furthermore, the mission was informed that the MLG is planning to

carry out a strategic review of the Ministry’s roles and work plan to support TCCs in enhancing municipal

management capacity. The mission highlighted the importance of institutionalizing revenue enhancement

efforts within the Ministry and agreed that the Bank team will have a follow-up discussion with the

Ministry end July, 2013. Lastly, the mission was informed of the ongoing efforts by MNRA to update the

quality of property registration and cadastral information for town councils. Following the discussion, the

mission agreed with the MNRA on the interim protocol to allow sharing relevant information with TCCs

for revenue enhancement efforts. It was agreed that Urban Planner under the project will follow up and

communicate with the TCCs on the interim protocol.

17. Municipal Growth Plan, Asset Maintenance Plan and Traffic Management: the

consultancies have been just mobilized and the mission highlighted that the PIU send all the main

deliverables for the Bank’s technical review and comments. The mission was pleased to note that the TA

activity is well under way with formulation of local working group consisting of town councils members,

civil society and private sector.

Component 3: Project Management

18. Contract Management – the mission recommends hiring additional staff to focus on contract

compliance aspects, working closely with Project Coordinator and Project Engineers. SIF noted a

previous attempt to hire personnel, but due to the stringent requirements (a legal background was

stipulated) the advertisement did not yield interest or responses. The mission recommends reviewing the

ToR and selection criteria to allow more flexibility. The mission recognizes that there may be few local

staff with in depth experience in procurement in multi-lateral funded projects. A more general profile is

strongly recommended, allowing for on-the-job training on specific WB policies. In the opinion of the

mission, a legal background should not be a requisite, but rather focus on the profile of the person for

example attention to detail, organization skills, assertiveness, and effective oral and written

communication skills, in addition to basic qualifications/education/experience that permits adequate

performance.

19. Monitoring and Evaluation – the mission reviewed the existing framework for M&E including

revising baseline and target values and adjusting indicators. The detailed M&E indicators are provided in

Annex 6.

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Financial Management (FM)

20. Internal Controls. The Project FM Unit continues to be well staffed with experienced,

competent and accredited accountant professionals, who exercise due diligence and care keeping in mind

key internal control features, including segregation of duties for key processes.

21. Budget and Interim Unaudited Financial Reports (IUFRs) The mission appreciates that the

Project’s IUFRs until March 2013 were submitted to the Bank on time and included comprehensive

information. The submitted figures have been reconciled with Bank account records in Client Connection

and banking statements. SIF periodically prepares easy-to-read summaries of FM reports of the Project

to provide to its major stakeholders, such as TCs and PSC. The summary reports highlight the Project’s

progress in terms of financial indicators and disbursement as well as compares projections with actual

figures. SIF continues to post and update Project financial information on the SIF website, openly

disclosing key data in line with the Project transparency requirements established in the Bank’s Access to

Information Policy.

22. External Audits. The mission reviewed internal control issues highlighted by auditors in the

management letter for the period April 2011/March 2012 and was pleased to note that SIF resolved and

closed all of the items. The mission met with the external audit team. The audit work for the current

period, as of March 2013 is in advanced stage and no delay in report submission is foreseen. As of the

date of the mission, no material weakness has come to the auditor’s attention, although they flagged the

need to improve contract projections to reduce instances for contract amendments changing the total cost

of a specific consulting firm. SIF and the Bank have found the performance of the audit firm as

satisfactory; consequently, since the firm audits SIF as an entity, SIF management will present a motion

to the Board to approve an extension for next audit period, with the corresponding adjustments in the

inflation rate.

23. Disbursement. The mission was pleased to note that the Project disbursement rate has

accelerated to a perfect match of 50% for this mid-term review disbursed and committed. The mission

randomly reviewed payment documentation and files, which were complete and orderly archived. It was

noted that payment clauses should be reviewed by the Finance Officers and clearly understood by the

Project Team, to mitigate risks of improper payments. The mission discussed the format of the table to

include in the request restructuring for reallocation among disbursement categories.

Procurement Management

24. Procurement Capacity. The mission reviewed the capacity of the SIF implementing the Project

procurement. In January 2013 SIF recruited a new Procurement Officer responsible for all procurement

activities including identification and selection of contractors, and oversight of the bidding process for the

Project. The Bank procurement mission in February 2013 conducted a thorough capacity assessment of

procurement staff and made recommendations to ensure technical quality reassurance in procurement

implementation. Besides intensive job training by the Bank’s senior procurement specialist, the

Procurement Assistant participated in the procurement workshops in the region for 2013. The

Procurement Officer should take formal procurement training within the year of 2013. As an action to

further strengthen the capacity of procurement, the hiring of contract management staff has been agreed

upon by SIF.

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

with the proposed updates by SIF based on the need for the implementation of the Project for Phase 2.

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The updated PP incorporating the agreements shall be submitted to the Bank by July 14, 2013 for no-

objection and publication.

26. Procurement Supervision: The mission reviewed the on-going and completed procurement

processes and contracts under Phase 1, which made substantial contribution to the robust improvement in

the Project’s disbursement. The planning for Phase 2 was discussed reflecting the experience and lessons

learnt. Detailed discussion on procurement supervision is attached in Annex 7.

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

mission of February 11-14, 2013. The civil works for street rehabilitation contracts via shopping were

post reviewed by the Bank with sample of three contracts at the total amount of US$ 165,734.58

equivalent. The MTR mission conducted the physical inspection. The review has concluded that

procurement activities carried out under the Project are in compliance with arrangements agreed in the

Project financing agreement and no major issue were found regarding procurement.

Social Safeguards

28. Resettlement Plans:

a. Lessons learnt: The location of the temporary relocation, both in Dangriga and Corozal,

seemed during the preparation of the plan, to be adequate to maintain the same level of

income; all three plans would have benefited from more supervision and hands-on

intervention. SIF’s delegation of decision-making to the municipalities was too early in

the process, for example, leaving communication with Project-affected people mainly in

the hands of the town council with minimal supervision or delegating to the Belmopan

town council the resolution of the taxi relocation.

b. Area of Development for Second Half of Project Implementation: To carry out an

analysis regarding the income lost by the Project –affected people and the present and

future fees they have to pay the Town Council as rent as well as user fees to devise an

income restoration program within the Dangriga Abbreviated Resettlement Plan; to use

the analysis to define an Income Restoration Program to be consulted with the Project-

affected people and town council within the Plan and update it accordingly; Regular

visits by SIF’s social officer will be carried out to all sites with active works; updates on

the implementation of the plans will be prepared and documented by SIF.

29. Social accountability - Project Monitoring Committees (PMCs):

a. Lessons learnt: During Phase One, the PMCs were effective, to a certain extent, in being

the SIF’s contact person from the community to give third party reports on the progress

of the works. However, they did not completely fulfill the original monitoring function,

given that they did not close the accountability loop by reporting back to the community

members who they represent after their visits to the site and meetings with SIF or the

Town Council; (ii) Project Monitoring Committees need to be strengthened and more

closely supervised by SIF.

b. Area of Development for Second Half of Project Implementation: During the second

phase of the Project, the SIF will develop and implement a strengthening proposal for the

Project Monitoring Committees (PMC), with World Bank support and

guidance. Increased supervision from SIF’s social officer is also recommended.

30. Grievance Redress Mechanism:

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a. Lessons learnt: The first tier of the sub-Projects’ grievance redress mechanism can only

be the PMC if they have been strengthened and have a good working relationship (in the

appropriate language) with the Project-affected people.

b. Area of Development for Second Half of Project Implementation: A new first tier

mechanism will be devised for Dangriga’s current plan and Phase Two’s plans. A

bilingual contact person, preferably a social worker, will be assigned to the Dangriga

market to communicate with the affected people on a regular basis. Similarly, in the

other towns, a contact person will be assigned. When appropriate, bilingual contact

persons will be assigned. Moreover, the SIF will contact the Ombudsman and Legal

Office to brief him/her on the Project and possible grievances he/she might receive.

31. Indigenous Peoples Framework:

a. Lessons learnt: Culturally appropriate consultation was not carried out

consistently. The Project’s framework is broad in scope and mostly emphasizes the

importance of the cultural aspects of communication and consultation. However,

consultations with Project-affected people as well as broader community during

participatory governance activities were not necessarily carried out in the most culturally

appropriate manner. For example, bilingual staff was not hired to ease communication

with Project-affected people whose first language is not English. Also, in one case, the

mission noted that consultations for second phase Projects could have been more

culturally appropriate.

b. Area of Development for Second Half of Project Implementation: These

responsibilities should be championed by SIF and not delegated to the

municipalities. The SIF will safeguard that communication is provided in a culturally

appropriate manner, according to the Project’s Indigenous Peoples Framework. In the

same manner, town hall meetings and other participatory events within the MDP’s

activities will follow the framework.

32. Communication strategy:

a. Lessons learnt: Citizen participation in local decision-making is in its beginning stages

under the Project due to several factors.

b. Area of Development for Second Half of Project Implementation: Communications

strategy will be adapted to focus on strengthening the municipalities’ accountability

mechanisms.

33. Participatory decision-making processes:

a. Lessons learnt: With the exception of Belmopan, all other Town Councils reported that

their town hall meetings participation could have been better; therefore the decisions

resulting from these meetings could have relied on a more robust participatory exercise.

b. Area of Development for Second Half of Project Implementation: SIF will supervise

these participatory processes more closely, to ensure that participation is meaningful.

Environmental Safeguards

34. Compliance with Bank safeguard policies is satisfactory.

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35. The mission reviewed compliance with the Belize Municipal Development Plan Environmental

Management Framework, dated June 2010, and followed up on progress since the previous

implementation mission in December 2012. Sub-Projects that require oversight of safeguard compliance

include:

a. Road and pavement rehabilitation works (including associated drainage) in Belmopan, San

Ignacio/Santa Elena, Orange Walk, Corozal, Dangriga, Benque Viejo, and Punta Gorda.

b. Market construction including provision of wastewater disposal for sanitary block and solid and

liquid waste management for fish market waste at Dangriga.

c. Construction of town hall building in Punta Gorda.

36. The mission commends the Project Engineers tasked with monitoring environmental

management. As requested during the last mission, monitoring reports of environmental management of

civil works Projects that are currently under implementation have been included in the overall progress

reports. A separate detailed EMP has been prepared for the market construction at Dangriga Market and

will be disclosed in the Bank InfoShop and on the SIF website. For Phase 2 Projects, the follow-up

screening form in the ESMF will be completed for each sub-Project prior to the start of civil works, and

where required, an EMP checklist will be prepared (utilizing the format followed for the Dangriga Market

EMP).

37. Phase 1 road and pavement rehabilitation. On the whole, adequate health and safety measures

have been adopted (provision of Personal Protective Equipment and adequate road signage and

notification of roadworks). Dust control spraying is undertaken on a daily basis. Construction waste has

been disposed of promptly and in an appropriate manner. No trees were removed as a result of the

roadworks.

38. The mission commends the Project Team for its excellent initiative in consulting the Institute of

Archaeology/National Institute of Culture and History with regard to the gun turrets, which had formed

part of Fort Barlee (adjacent to the roadworks in Corozal). This led to the turrets being protected and

fortified, and signposted as a Heritage Landmark. (The cavities identified under the turrets are a natural

geological formation, and are confirmed to be of no historic or cultural significance.

39. The mission recommends the PIU to take the following actions:

a. Ensure that where relevant, drains are covered with grilles, both for pedestrian safety, and to

prevent accumulation of solid waste leading to blockage and backup from silt traps at the

shoreline.

b. Reduce the height of the inverts in the flat slope drain running towards the sea from Corozal

market to ensure smooth flow and disposal of wastewater. When corrective works are

completed, flush the drain (using water from the fire station pump) and cover the drain with

grilles.

c. Upon completion of all sub-Projects in Phase 1, prepare a summarized completion report of

environmental mitigation measures followed, lessons learned (e.g., ensure that drains are tested

by contractors to ensure that effluent waters flow through to the outtakes.)

40. Market construction at Dangriga. The new market is still under construction. The sanitary

block under construction will have a biological filtration system (solid waste will be collected in a septic

tank and appropriately disposed of, and aggregates will filter liquid waste, which will drain into a tile

pond). The solid waste from the fish market will be collected in a depository for regular collection for use

as composting. The liquid waste from the fish market will be sent to a soak-away system, before

biological filtration to the soil. The design of the building (roof and floor drains) incorporates adequate

rainwater drainage measures. Stainless steel has been utilized in food stall design, instead of tiles, for

sanitary purposes (no cracks harboring bacteria, etc.). The temporary toilet drains into a self-contained

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impermeable septic tank, which will be removed upon completion of the Project. In terms of

environmental measures, sheet siding has been placed along the banks of the adjacent canal to prevent

erosion. A detailed EMP has been prepared for this sub-Project and will be disclosed in the World Bank

InfoShop and in-country on the SIF website (a copy will also be given to the Town Council and made

available to the public).

41. The mission recommends the PIU to take the following actions:

a. Ensure that installation of soak-aways, grease traps, and septic tank are properly installed, by

on-site supervision during the process.

b. Undertake a baseline water quality analysis of the ambient water quality in Dangriga Canal and

upstream. Samples will be analyzed for coliforms and Ph-level, and follow-up samplings will

be taken three months after the market is operational, and again six months thereafter.

c. Install siltation barrier to prevent solid waste in the canal from entering the open sea.

42. Construction of town hall building in Punta Gorda (completed). The building meets all

environmental compliance standards, but the mission recommends that the PIU replace the wooden

covers currently placed on drain entry points with grilles as soon as feasible to allow for rainwater to enter

the drains, thereby preventing stagnation with resultant health risks.

43. Phase 2 Investments. Going forward, the mission recommends the PIU to take the following

action during Phase 2 of the Project:

a. Future sub-Projects must have a brief EIA (where required by Government of Belize (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. Given that this is a Category B

Project (with limited environmental impact), preparation of environmental documentation and

periodic progress reports can be included in the TOR for the design consultant/supervision

engineer.

___________________________ ____________________________

Yvonne S. Hyde Yoonhee Kim

CEO Ministry of Finance and Task Team Leader, World Bank

Economic Development

12

Annex 1a: Action Plan

Relevant Activities Recommendation/Action Responsible

Agency

Due Date

1 Project Management

– Dangriga Market

The SIF will communicate to the

Bank the justification for the final

amount for the refund for the

supervision works at the Dangriga

Market.

PIU By June 21, 2013

2 Project Management

– Dangriga Market

Regarding the Dangriga Market

contractors, the SIF will confer with

legal professionals and the Project

Steering Committee (PSC) on the

next steps and inform the Bank of

the decision.

PIU By June 28, 2013

3 FM: Request for

reallocation among

disbursement

categories

Prepare Table with Disbursement

Categories for Reallocation.

PIU By June 21, 2013

Second Phase

Investment

Prioritization and

Appraisal

Provide a revised phase 2 project

appraisal documents for the Bank’s

no objection

PIU By July 31, 2013

Second Phase

Investment

Prioritization and

Appraisal

Provide the Bank team with the

evidence of meeting all the 2nd

phase investment criteria

PIU June 28, 2013

6 Procurement The updated procurement plan

incorporating the agreements shall

be submitted to the Bank for no-

objection and publication.

By July 14, 2013

7 Procurement C14: Traffic Management Training

Module (QCBS-Lump sum):

Swedish National Road Consulting

AB (SWEROAD) contract to start.

By end of June, 2013

8 Procurement C32-33: Preparation of

Designs, Technical Specifications,

Cost Estimates and supervision for

Structures (Small Works) in

Corozal, Orange Walk and Benque

Viejo (CQS): to open. The

consultancy is advertised in the

local press with a deadline.

By June 14, 2013

(opening date)

By June 28, 2013

(deadline for

advertisement)

9 Procurement C34-35: Preparation of

Designs, Technical Specification,

Cost Estimates and Supervision of

Municipal Streets Rehabilitation

(Small Works) in Corozal, Orange

Walk, Benque Viejo & San

By June 14, 2013

13

Ignacio/Santa Elena and Belmopan

(CQS): to open

10 Procurement C36: Preparation of Designs,

Technical Specifications and Cost

Estimates for the Rehabilitation of

Municipal streets in Belmopan,

Punta Gorda, Dangriga, Corozal,

Orange Walk, Benque Viejo & San

Ignacio/Santa Elena (LCS): to open.

By June 14, 2013

11 Social Safeguards Conduct Income Restoration

analysis and submit to the Bank.

The new Income Restoration

Program will be in effect by August

1st (the original works completion

deadline).

PIU By June 28, 2013

12 Social Safeguards Update the Plan to reflect the new

provisions for the first tier of

grievance redress mechanism and

the income restoration plan.

PIU By June 28, 2013

13 Social Safeguards Propose a work plan for phase two

incorporating lessons learned

covering resettlement, culturally

appropriate consultation,

accountability/participation, and

grievance redress mechanisms.

PIU By June 28, 2013

14 Environmental

Safeguards

Ensure that where relevant, drains

are covered with grilles.

PIU By end of Phase 1

Project

Commissioning

15 Environmental

Safeguards

Reduce the height of the inverts in

the flat slope drain running towards

the sea from Corozal market to

ensure smooth flow and disposal of

wastewater. When corrective works

are completed, flush the drain

(using water from the fire station

pump) and cover the drain with

grilles.

PIU By end-July

16 Environmental

Safeguards

Upon completion of all sub-Projects

in Phase 1, prepare a summarized

completion report of environmental

mitigation measures followed and

any lessons learned

PIU Upon Phase 1 Project

Commissioning

17 Environmental

Safeguards

Provide details on next available

Safeguards training workshop for

Project engineers (or approve

environmental management training

courses)

WB By end-July

14

18 Environmental

Safeguards

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.

PIU Timing dependent on

construction schedule

First sampling by end-

July

Prior to completion of

civil works

19 Environmental

Safeguards - Phase 2

sub-Projects

Future sub-Projects must have a

brief EIA (where required by 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.

PIU Prior to

commencement of

civil works on Phase

2 sub-Projects

15

Annex 1b: Action Plan Update from Last Mission (December 2012)

Relevant

Activities

Recommendation/Action Responsible

Agency

Due Date Status

1 Environmental

Safeguards

Ensure that road crews at Corozal

are provided with protective

headwear by the contractor, and

with protective footwear for those

operating heavy machinery (e.g.,

drills)

PIU By end of

December

2012

Done

2 Environmental

Safeguards

Confirm that the cavity under 1st

North Street in Corozal is not

culturally or historically important;

Check with the Department of

Archaeology that there is no

concern about filling the cavity with

concrete

PIU By end of

December

2012

Done

3 Environmental

Safeguards

Provide brief environmental

compliance progress reports for

Phase 1 roads Projects, and provide

a completion report upon

completion of subProjects

PIU By end of

March 2012

Done

(Summarized

completion

report to be

prepared upon

completion of

ALL sub-

Projects)

4 Environmental

Safeguards

Advise on progress of the initiative

to plant Bermuda grass along earth-

lined drains for erosion control

PIU At PIU’s

discretion

At PIU’s

discretion

5 Environmental

Safeguards

Provide brief environmental

compliance progress reports for

Dangriga market

PIU By mid-

January

2013, mid-

May 2013,

and in July

2013

Detailed EMP

prepared, and

will be disclosed

by end-June

6 Environmental

Safeguards

Undertake a baseline water quality

analysis of the ambient water

quality in Dangriga Canal; upon

completion of the works,

periodically assess the point source

water quality at the sanitary block

and soak-away

PIU/TC By end of

February

2013

Baseline

assessment to be

conducted by

end- July.

Periodic testing

to follow upon

market

becoming

operational

7 Environmental

Safeguards

Prepare and disclose brief EIA

(where required) and EMP for

future subProjects

PIU Upon

selection of

Phase 2

subProjects

Upon selection

of Phase 2

subProjects

8 Environmental

Safeguards

Provide details on next available

Safeguards training workshop for

WB By end of

December

Pending (timing

of workshop

16

Project engineers 2012 was during

Project mission)

17

Annex 2: List of People Met

Belize Social Investment Fund

Daniel Cano Executive Director

Ernest Raymond Project Coordinator

Nellie Trench Finance Unit Coordinator

Christine Lopez-King Senior Accounts Officer

Evan Dakers Social Specialist

Carolyn Crawford Procurement Specialist

Keisha Rodriguez Urban Planner

Lionel Jiminez Engineer

Francisco Gonzalez Engineer

Clifford King Local Government Officer

Ministry of Finance and Economic Development

Yvonne Hyde CEO

Ministry of Natural Resources and Agriculture

Beverly Castillo CEO

Gina Young Physical Planner

Ministry of Local Government

Candelaria Morter CEO

Eugene Palacio Director

Project Steering Committee (PSC)

Yvette Alvarez Ministry of Finance Representative

Lawrence Sylvester CEO, Ministry of Housing and Urban Development

Errol Gentle CEO, Ministry of Works and Transport

Mayors

Simeon Lopez Mayor of Belmopan

Miguel Velasquez Mayor of Benque Viejo del Carmen

Hilberto Campos Mayor of Corozal

H. Gilbert Swaso Mayor of Dangriga

Kevin Bernard Mayor of Orange Walk

Anthony Fuentes Mayor of Punta Gorda

John August Jr. Mayor of Santa Elena/San Ignacio

Town Councils

Enrique Carballo Executive Secretary, Belize Mayors’ Association

Javier Novelo Engineering Assistant, Belmopan TC

Angela Wade City Administrator, Belmopan TC

Sebastian Morales Revenue Manager, Belmopan TC

Carolene Arzu Accountant, Belmopan TC

Johukeoui Jones Traffic Manager, Belmopan TC

Carmencita Sosa Accountant, Benque Viejo del Carmen TC

Melly Coyol Town Administrator, Benque Viejo del Carmen TC

Elva Perez Deputy Mayor, Corozal TC

18

Rafael Castillo Councilor, Corozal TC

Gilroy Howard Flores Deputy Mayor, Dangriga TC

Timothy Westley PME, Dangriga TC

Paul S. Francisco Ag. Town Administrator, Dangriga TC

Simon Paulino Deputy Mayor Punta Gorda TC

Ludwig Palacio Town Administrator, Punta Gorda TC

Wilfredo Wina Traffic Management, Santa Elena/San Ignacio TC

Karen Fernandez Town Administrator, Santa Elena/San Ignacio TC

Melanie Danilezyk Revenue Manager, Santa Elena/San Ignacio TC

Horwath Belize, LLP

Lisa Zayden Audit Team Leader

Jessie Huang Audit Team Member

Catherine Castillo Audit Team Member

19

Annex 3: List of Site Visit Locations and Dates

June 10, 2013

- Belmopan: Easter Bus Terminal one-way street and Taxi Parking, Nimli Punit Street,

Hummingbird Extension, Raccoon Street

June 11, 2013

- Benque Viejo del Carmen: Church Street, Church Hill Street, Burns Street, Independence Street,

Juanito Pongorast Capital Park

- Santa Elena/San Ignacio: West Street, Eden Street

- Orange Walk: Aviles Street, Santa Familia, Central Park

- Corozal: 1st North Street (Police Station), Punta Gorda Street, Zuzuc Street, 1

st South Street

June 12, 2013

- Dangriga: Market Rehabilitation/Extension

- Punta Gorda: Pampana Street, Robert Pennell Street, Town Hall/Administrative Building

Rehabilitation, Hopeville Street, West Street

20

Annex 4: Status of Phase 1 Projects

Component 1, Phase 1 Sub-Project Status

Project Sites

Length

Designed

(m)

Length

Constructed

(m)

Town/City Contractor

Percent

Completed

(%)

Start Date of

the Contract

(NTP)

Completion

Date

Bus Terminal Area 308 195*1 Belmopan Belize Roadway Construction 100 8/13/12 12/11/12

18th St 497 260 San Ignacio Castillo Equipment 100 8/20/12

Avilez Lane 137 110 Orange Walk M&R Construction 100 8/20/12 11/19/12

Tangerine St 134 160

Zuzuc St 201 280 Corozal Imer Hernandez Dev. Co. Ltd. 100 8/20/12 11/19/12

Church St 750 750 Benque Viejo del

Carmen

Imer Hernandez Dev. Co. Ltd. 100

10/3/13 10/4/13 Churchill St 750 750

Burns St 450 450

Eden St 627 280 San Ignacio/Santa

Elena

West St 237 584

Robert Pennell St 274 160 Punta Gorda

Pampana St 375 375

San Ignacio St 349 350 Orange Walk De' Mars Construction 100 9/24/12 12/23/12

Nim Li Punit St 272 250*2

Belmopan

A&N Construction

100

10/4/12 3/3/13 Hummingbird Dr 76 180 100

Raccoon St 435 325*3 100

Punta Gorda St 402 500 Corozal

100

1st North St 195 195*4 100

Santa Familia St 776 615*5 Orange Walk 40

Notes:

1. Sidewalks were added on both sides.

2. 1/2 length paved with HMA, other half with 2-layer 1/2" chip seal.

3. Shorten to adjust for additional drains added to Nim Li Punit St and Hummingbird Drive.

4. Added some 200m of 0.6m wide lined drains and some 240m of 1m wide lined drains.

5. Portion of Audinette Alley not in Orange walk Town therefore, this portion was eliminated,

only 200m paved, 160m of 0.6m wide lined drain added on both sides,

sub-base & base added over 615m length.

21

Annex 5: Proposed Phase 2 Projects

The proposed phase 2 Projects and lengths in order of north to south, west to east are:

1. Corozal:

- Market (1,500m2) Expansion and Rehabilitation

- 6th Ave (85m) and 1

st St South (180m) Rehabilitation

- Fort Barlee south turrets (2) Rehabilitation

- Sport Complex (12,000m2) Expansion and Rehabilitation

2. Orange Walk:

- Central Park (2,400 m2) Rehabilitation

- Park Streets (1,800 m2) (North Park St/80m, South Park St/80m and Lover’s Lane/70M)

Rehabilitation

- Santa Familia St Rehabilitation

3. Benque Viejo del Carmen:

- Juanito Gongora St (545m), Independence St (530m) Rehabilitation

- 1,100m long by 1.2m wide Sidewalks (1,320m2)

4. San Ignacio/Santa Elena:

- Carmelita St (312m), Bishop Edmund St (45m), Martin Galvez St, and Cahal Pech St

(428m) Rehabilitation

- Salazar St (548m), Eden St (480m) Rehabilitation

5. Belmopan:

- Water Reservoir Streets (Barton Creek St/370m, Blue Creek St/290m, Garbutt

Creek/440m, Haulover Creek/380m, Mussel Creek/450m, and Roaring Creek/520m)

Rehabilitation

- Chiquibul St (240m) and Almond Blvd (280m) Rehabilitation

6. Dangriga:

- Trucking Blvd (355m) and Gadsby Ramos St (732m) Rehabilitation

7. Punta Gorda:

- Melendrez Blvd (350m), R. K. Pennell Blvd (320m), Mangrove St (310m), Wild Cane

St (350m) Rehabilitation

22

Annex 6: Monitoring and Evaluation

Data Collection Matrix

Project /

Intermediate

Outcome

Indicators

Base-

line

Target Values Data Collection and Reporting

Comments YR 1 YR 2 YR 3 YR 4 YR 5

Frequency

and

Reports

Data

Collection

Instruments

Responsibility

for Data

Collection

Number of

beneficiaries with

access to improved

quality of basic

municipal

infrastructure

(direct and indirect

Project

beneficiaries

(number), of

which is female

(percentage).

0

Direct Direct Direct Direct Direct

Annual

Sub-Projects

completion

reports

PIU-SIF

The data collected in

year 1 is for the two (2)

Pilot Projects in

Belmopan and San

Ignacio/Santa Elena.

The data for year 2 has

not been revised for

population increases

over the past 6 month

period

Ma

le

Fem

ale

Ma

le

Fem

ale

Ma

le

Fem

ale

Ma

le

Fem

ale

Ma

le

Fem

ale

49

% 51%

49

% 51%

3,500 -

-

-

Indirect Indirect Indirect Indirect Indirect

Ma

le

Fem

ale

Ma

le

Fem

ale

Ma

le

Fem

ale

Ma

le

Fem

ale

Ma

le

Fem

ale

49

% 51%

49

% 51%

146,172

153,683 -

- -

Number of towns

successfully

completing

investments in first

and second phases

0 0 6.00 -

- -

End of

phase 1

and end of

the Project

Project

Completion

Reports

PIU-SIF

Six (6) TCCs have

successfully completed

investments in phase 1

(Belmopan, Benque,

Corozal, Orange Walk,

Punta Gorda, and

SI/SE). Phase 2 is to

commence in year 3

At least four

TCC’s each have

achieved four out

of seven

intermediate

outcome indicators

of component 2

0 0 4.00 -

- - Annual

Compilation

of different

progress

reports such

as financial

reports

submitted to

PIU-SIF

The four (4) TCCs that

achieved at least four

out of the seven

intermediate outcome

indicators of

component 2 are:

Corozal, Belmopan,

23

MLLGRD Benque, and Dangriga.

Intermediate

Outcome

Indicators

Baseline YR 1 YR 2 YR 3 YR 4 YR 5

Frequency

and

Reports

Data

Collection

Instrument

s

Responsibility

for Data

Collection

Comments

Km of drainage

financed under the

Project

0 0 10.1 -

- -

Semi-

annual

Sub-Projects

completion

reports

PIU-SIF

Km of

rehabilitated roads

under the Project

0 0 5.18 -

- -

Semi-

annual

Sub-Projects

completion

reports

PIU-SIF

Number of

improved

intersections under

the Project

0 58 -

- -

Semi-

annual

Sub-Projects

completion

reports

PIU-SIF

Number of traffic

signs financed

under the Project

0 107 -

- -

Semi-

annual

Sub-Projects

completion

reports

PIU-SIF

Number of towns

and cities that

comply with terms

and conditions of

sub-Project

agreement

0

7 7 -

- -

Semi-

annual

Sub-Projects

completion

reports

PIU-SIF

Number of towns

and cities that

have adopted

MGP

0 0 0 -

- -

Semi-

annual

Minutes of

Town Hall

Meetings

MLLGRD

Number of towns

increasing own

revenue collection

Local

revenue

collected

in 2009

0 0 -

- -

Semi-

annual

Financial

Reports

submitted to

MLLGRD

MLLGRD

Belize City and San

Pedro Town have been

included. The period

(April to July) will be

compared for

2011/2012 and

2012/2013 as

recommended by

24

consultant

Number of towns

with qualified

accountants on

staff

0

7 9 -

- -

Semi-

annual

Towns and

Councils

submit

information

to

MLLGRD

MLLGRD

Belize City and San

Pedro Town have been

included

Number of towns

submitting

required financial

reports

0

9 9 -

- -

Semi-

annual

Financial

Reports

submitted to

MLLGRD

MLLGRD

Belize City and San

Pedro Town have been

included

Number of towns

using a

computerized

financial reporting

system

0

1 9 -

- -

Semi-

annual

Reports

submitted to

PIU PC

MLLGRD

Belize City and San

Pedro Town have been

included.

Number of towns

with a physical

asset maintenance

plan and

corresponding

budgets

0 0 0 -

- -

Semi-

annual

Financial

Reports

submitted to

MLLGRD

MLLGRD

Number of towns

with roads and

safety procedures

0 0 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 9 9 -

- -

Semi-

annual

Reports

submitted to

PIU PC

MLLGRD and

MNRE

Belize City and San

Pedro Town have been

included

Number of TCC’s

provided with

spatial data sets

showing land

0

7 7 -

- -

Semi-

annual

MNRE

Internal

Reports

MNRE

25

parcels

Percentage of sub-

Projects that meet

SIF’s service

standards in

accordance with

the OM

0 100% 100% -

- -

Semi-

annual

SIF PIU

Internal

reports

PIU-SIF

Procurement and

FM duties are

executed in

accordance with

national and

World Bank

guidelines

0 yes yes -

- -

Semi-

annual

SIF PIU

Internal

reports/

Financial

Audits

PIU-SIF

26

Annex 7: Procurement Review

Phase 1

For contracts of major TA packages under Component 2:

i. C11: Municipal Growth Plan (QCBS-Lump sum): Contract was signed in December

2012 with a proposed completion date of December 2013. Technical Assistance to prepare

the Municipal Development Plans is being provided by the firm, Institute for International

Urban Development (I2UD). Commencing their work on January 2, 2013, I2UD submitted

their Draft Inception Report on February 4, 2013 and the Final Inception Report on March

1, 2013 that incorporated stakeholder comments. The consultants submitted the draft

Municipal Development Plan Strategy for review on Thursday, April 4, 2013 and the final

document was submitted on May 6, 2013.

ii. The preparation of the Municipal Development Plans was launched on May 9, 2013 at the

First National Workshop. Module 1 - Municipal Assessment commenced in all seven (7)

municipalities on May 13, 2013 with cluster workshops and follow-up sessions conducted

by the consultants. The total amount for this Project is BZD$687,359.72. The total

outstanding amount left of this contract is BZD$494,939.79.

iii. C14: Traffic Management Training Module (QCBS-Lump sum): Swedish National

Road Consulting AB (SWEROAD) was selected as consultant for this Project. Matters

relating to the association were clarified during contract negotiation and contract went for

signature. The contract is to start by the end of June 2013. The total contract amount is

BZD$729,630.50.

iv. Physical Asset Maintenance Plan (QCBS-Lump sum): The contract was signed in April

2013 total contract amount is BZD$432,415.00, with the consulting firm Hydroplan. The

first payment of BZD$37,432.50 has been paid to the consultant with the submission of the

first draft Inception Report. The consultant has recently submitted the final Inception

Report to the PIU for their review. This contract has not had any contractual issues thus

far. The procurement method used was QCBS. Outstanding balance left on this contract is

BZD$394,982.50

b. Project activities related to “Refurbishment of Buildings”:

i. C2-3: Consulting services for design and technical inspection for buildings signed

with ATA in lump-sum contract was reviewed by Mission, given the non-compliance with

the contract conditions. While 100% payments of the contract had been made to ATA by

PIU, deliverables had been only partially made under Interim Report #3 for Dangriga. It

was agreed that the 20% payment for Interim Report #3 be split between PG and Dangriga

based on supervision of civil works contracts, based on which the overpaid amount was

calculated as BZ$21,641 with BZ$11,656 overpaid for Interim #3 and BZ$9,985 for final

payment. The refund decision is subject to the fiduciary consideration by PIU’s Financial

Management team. The lessons from ATA contract were discussed to avoid similar

contract management issues.

ii. W-3: Civil works contract for PG under NCB procedures was signed on March 22,

2012 at US$ 212,575, and completed in September 2012, on schedule.

iii. W-5: Civil works for Dangriga under NCB procedures was reviewed by the mission in

April 2012, especially on the post qualification for the lowest evaluated bid, K & G

27

Construction. Bank gave no-objection to the contract award to K & G issued on May 4 and

contract was signed on May 24, 2012 at US$ 668,675 (BZ1,377,349.50). The contract has

been delayed substantially. Though GCC46.1 for the liquidity penalty could be applied not

exceeding the total liquidity of 5% of the contract price, the reason causing the delay has

not been agreed. The Project is assessing the contract status from technical and contractual

point of view and will decide the next steps by the end of June.

c. Project activities related to “Rehabilitation of Streets”:

i. C5-10: Preparation of Designs, Technical Specifications and Cost Estimates for

Rehabilitation of Municipal Streets: Contract was signed November 2011 with

Anthony Thurton & Associates at total contract sum was BZ$299,757.94. The contract

has been completed.

ii. C5-10: Supervision of Municipal Street Rehabilitation of street works: Contract was

signed in July 2012 with TECHNIPLAN at the total contract amount is BZ $774,519.00.

The contract is time-based and managed within the ceiling of the contract. There is an

outstanding balance of BZ$108,542.74 for reimbursable expenses.

d. Civil works for the street were tendered under NCB (2 packages) and shopping (5 packages)

procedures, based on design and supervision under C5-10 consulting services. The PIU has

requested that the Bank increases the thresholds for both NCB and shopping for works, from

US$ 1.0 million per NCB tender to US$ 1.5 million per NCB tender, and for shopping from

US$ 100,000 to US$ 150,000. The Bank provided no-objection to the increase threshold in

May, 2012, which has accelerated the implementation of the Phase 1 construction works. The

following NCB packages were reviewed at the mission:

i. W 9: Rehabilitation of streets in Benque Viejo, San Ignacio and Punta Gorda

Town (NCB): The contractor Imer Hernandez Development Company signed contract on

the August 16, 2012 with a start date of September 2, 2012, at the total contract price is

BZ$2, 320, 630.65. An amendment totaling US$49,562.51 was added to the contract for

adjustment to rebuild existing concrete lined drains, to replace a culvert in Benque and

primer for asphalt coat to streets.

ii. W 11: Rehabilitation of streets in Benque Viejo, San Ignacio and Punta Gorda

Town (NCB): The contract was signed in September 2012 with A & N Construction at

the total contract amount of BZ$2,183,809.65. The contract is 97% completed with

works to be concluded in August 2013. An amendment totaling BZ$99,125.02 was

approved for additional works for drains in Orange Walk and Corozal due to poor designs

by the Design Consultant. The outstanding balance for payment is BZ$504,220.95.

Phase 2

e. C32-33: Preparation of Designs, Technical Specifications, Cost Estimates and

supervision for Structures (Small Works) in Corozal, Orange Walk and Benque Viejo

(CQS): The consultancy is advertised in the local press with a deadline of June 28, 2013. The

deadline was extended an additional week due to limited amount of EOIs received. The

proposed opening date is June 14, 2013.

f. C34-35: Preparation of Designs, Technical Specification, Cost Estimates and

Supervision of Municipal Streets Rehabilitation (Small Works) in Corozal, Orange Walk,

Benque Viejo & San Ignacio/Santa Elena and Belmopan (CQS): The consultancy was

28

advertised starting May 17, 2013 with a deadline of June 3, 2013. The proposed opening is

June 14, 2013.

g. C36: Preparation of Designs, Technical Specifications and Cost Estimates for the

Rehabilitation of Municipal streets in Belmopan, Punta Gorda, Dangriga, Corozal,

Orange Walk, Benque Viejo & San Ignacio/Santa Elena (LCS): The consultancy was

advertised starting May 1st, 2013 with a deadline of May 31

st, 2013. The deadline was extended

an additional week due to limited amount of EOIs received. The proposed opening date is June

14, 2013.