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BANGLADESH CLIMATE CHANGE RESILIENCE FUND (BCCRF )
IMPLEMENTATION MANUAL
October 19, 2010
Table of Contents Chapter 1. Background and Context ................................. ................ .................................. ................................... .................................... ................................... ................. 7
Background Background ....................................................................................... ............................................ 7 Objectives Objectives of the BCCRF ......................................................... .................................................... 8 Broad Principles and Objectives of the Implementation Manual ............................................... 10 Chapter 2: GOVERNANCE : First, Second and Third Tiers Overall Policy and Decision-Making12 Decision-Making12
Governance Governance Arrangements........................................................ Arrangements........................................................ .................................................. 12 A. First Tier: Governing Council ................................................ .......................................... 12 B. Second Tier: Management Management Committee Committee ..................................................... ............................................................................. ........................ 14 C. Secretariat Secretariat ................................................................................................ ......................... 16 D. Expert Panel ........................................................................... .......................................... 18 Chapter 3: World Bank Roles and Responsibilities .............................................................................. 19
A.
Organizational Organizational Structure .......................................................................... .................... .............................................................................. ........................ 19 Bank Responsibilities................................................................................................ .............. 19 Transparency, Transparency, Accountability and Good Governance. ........................................................... 20 B. The World Bank Team ................................................... .................................................. 21 Roles and Responsibilities Responsibilities ................................................................................................ ...... 21 WB team composition................................................................... .......................................... 22 C. The summary of roles and responsibilities responsibilities............................................... ........................ 23 Chapter 4: THE GRANT PROJECT CYCLE: From Design through Negotiations and Implementation ......................................................................................................................................... 26
A.
Objectives Objectives ........................................................................................ ................................. 26 Grant Criteria ....................................................................... ................................................... 26 Objectives Objectives of the CCSAP...................................................... .................................................. 26 B. The BCCRF Grant Process ......................... ....................................................... ..................................................................... .............. 28 First Phase: Project Preparation .................................................... .............................................................................................. .......................................... 28 Second Phase: Project Implementation Implementation.................................................. ................................. 29 Third Phase: Grant Closing and Evaluation........................................... Evaluation........................................... ................................. 31 C. Funding Program for Civil Society and NGOs .................................................. .............. 32 Context of civil society participation ..................................................... ...................................................................................... ................................. 32 Guiding principles for engaging Civil Society and NGOs as sub-grant recipients ................ 32 Structure and modality ................................................. .................................................... ........................................................... ....... 33 Screening Screening of eligible proposals ..................................................... ............................................................................................... .......................................... 33 CHAPTER 5: BCCRF FINANCIAL MANAGEMENT: Accounts, Reporting, & Audits ................ 35
Management Management of Funds............................................................................ ................................. 35 Accountability Accountability for Use of Funds ................................................... .......................................... 35 TFast (former e-Trust Funds)................................................................. ................................. 37 TFast (former e-Trust Funds)................................................................. ................................. 37 Donor Contributions and Call of Funds................................................. ................................. 37 Eligible Expenditure Categories Categories (Bank-executed (Bank-executed Activities) ................................................. 37 Financial Financial Monitoring .................................................................... .............. ................................................................................................ .......................................... 38 Annual Financial Donor Reporting Reporting............................................... .......................................... 38 Financial Financial Audits ................................................. ..................................................... ..................................................................... ................ 38
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Table of Contents Chapter 1. Background and Context ................................. ................ .................................. ................................... .................................... ................................... ................. 7
Background Background ....................................................................................... ............................................ 7 Objectives Objectives of the BCCRF ......................................................... .................................................... 8 Broad Principles and Objectives of the Implementation Manual ............................................... 10 Chapter 2: GOVERNANCE : First, Second and Third Tiers Overall Policy and Decision-Making12 Decision-Making12
Governance Governance Arrangements........................................................ Arrangements........................................................ .................................................. 12 A. First Tier: Governing Council ................................................ .......................................... 12 B. Second Tier: Management Management Committee Committee ..................................................... ............................................................................. ........................ 14 C. Secretariat Secretariat ................................................................................................ ......................... 16 D. Expert Panel ........................................................................... .......................................... 18 Chapter 3: World Bank Roles and Responsibilities .............................................................................. 19
A.
Organizational Organizational Structure .......................................................................... .................... .............................................................................. ........................ 19 Bank Responsibilities................................................................................................ .............. 19 Transparency, Transparency, Accountability and Good Governance. ........................................................... 20 B. The World Bank Team ................................................... .................................................. 21 Roles and Responsibilities Responsibilities ................................................................................................ ...... 21 WB team composition................................................................... .......................................... 22 C. The summary of roles and responsibilities responsibilities............................................... ........................ 23 Chapter 4: THE GRANT PROJECT CYCLE: From Design through Negotiations and Implementation ......................................................................................................................................... 26
A.
Objectives Objectives ........................................................................................ ................................. 26 Grant Criteria ....................................................................... ................................................... 26 Objectives Objectives of the CCSAP...................................................... .................................................. 26 B. The BCCRF Grant Process ......................... ....................................................... ..................................................................... .............. 28 First Phase: Project Preparation .................................................... .............................................................................................. .......................................... 28 Second Phase: Project Implementation Implementation.................................................. ................................. 29 Third Phase: Grant Closing and Evaluation........................................... Evaluation........................................... ................................. 31 C. Funding Program for Civil Society and NGOs .................................................. .............. 32 Context of civil society participation ..................................................... ...................................................................................... ................................. 32 Guiding principles for engaging Civil Society and NGOs as sub-grant recipients ................ 32 Structure and modality ................................................. .................................................... ........................................................... ....... 33 Screening Screening of eligible proposals ..................................................... ............................................................................................... .......................................... 33 CHAPTER 5: BCCRF FINANCIAL MANAGEMENT: Accounts, Reporting, & Audits ................ 35
Management Management of Funds............................................................................ ................................. 35 Accountability Accountability for Use of Funds ................................................... .......................................... 35 TFast (former e-Trust Funds)................................................................. ................................. 37 TFast (former e-Trust Funds)................................................................. ................................. 37 Donor Contributions and Call of Funds................................................. ................................. 37 Eligible Expenditure Categories Categories (Bank-executed (Bank-executed Activities) ................................................. 37 Financial Financial Monitoring .................................................................... .............. ................................................................................................ .......................................... 38 Annual Financial Donor Reporting Reporting............................................... .......................................... 38 Financial Financial Audits ................................................. ..................................................... ..................................................................... ................ 38
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Account Earned Income........................................................ .......................................................................................................... .................................................. 38 Administrative Administrative Fee and Cost Recovery .................................................................................. 38 CHAPTER 6: PROJECT FINANCIAL MANAGEMENT BY GRANT RECIPIENTS: Accounts, Disbursements, & Audits .......................................................................................................................... 40
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Financial Financial Management Management Systems And Standards ................................................ .............. 40 Capacity Assessment of Financial Management Systems for Prospective Implementing Agencies.................................................... .......................................................................................................... .............................................................................. ........................ 40 Responsibilities Responsibilities of the Financial Staff of the PIU .................................................................. ............... ................................................... 40 B. Accounting Accounting And Reporting ......................................................................................... ..... 41 Designated Designated Account and Grant Advance ............................................... ................................. 41 Implementation Implementation Period and Closing Date .............................................. ................................. 42 Financial Financial Reporting and Disbursements Disbursements ................................................................................. 42 Designated Designated Account Advances, and Planned Forecast Expenses ........................................... 42 C. Disbursements Disbursements ................................................................ .................................................. 43 Disbursement Disbursement Letter..................................................... ......................................................................................................... ........................................................... ....... 43 Eligible Expenditures Expenditures ................................................... .................................................... ........................................................... ....... 43 D. Audits .............................................................................................. ................................. 44 Independent Independent Audit Scope .......................................................................................... .............. 44 Audit Disclosure ........................................................................... .......................................... 45 E. National Budget And Financial Financial Issues ..................................................... ............................................................................. ........................ 45 National Budget Allocation .......................................................... .......................................... 45 Country Background Background Financial Financial Management Management Issues ......................................................... ..... 45 CHAPTER 7: PROCUREMENT ............................................................................................................ 46
Bank Executed Activities – Activities – Contract Contracting ing Consultant Consultant Services Services ......................................... ................. ........................ 46 Applicable Applicable Guidelines Guidelines for Selection of Consultants Consultants ................................................. .............. 46 e-Consultant e-Consultant Entry Requirements ...................................................................................... ..... 46 eConsultant eConsultant ID and Vendor Registration ............................................... ................................. 46 Review by The World Bank (Prior Review Thresholds) Thresholds) ................................................. ....... 47 Corporate Corporate Procurement Procurement ................................................................. .......................................... 47 Terms of Reference and Budget ............................................................ ...... ....................................................................................... ................................. 47 Record Keeping ........................................................... .................................................... ........................................................... ....... 47 B. Procurement Procurement Of Goods, Works, And Services by The Grant Recipient .......................... 48 Procurement Procurement Policies ............................................................................. ....................... ....................................................................................... ................................. 48 The Procurement Procurement Plan .................................................. .................................................... ........................................................... ....... 49 Implementing Implementing Agency A gency Procurement Capacity Assessment Assessment ............................................. ....... 49 Availability Availability of Standard Bid Document and Procurement Procurement Templates.................................... 50 Appraisal and Grant Negotiations................................................. .......................................... 50 Implementation Implementation ............................................................ .................................................... ........................................................... ....... 51 Role of Staff .............................................. ...................................................... .............................................................................. ........................ 52 Post Reviews ............................................. ...................................................... .............................................................................. ........................ 52 A.
CHAPTER 8: MONITORING FOR RESULTS .................................................................................... 53
A.
The Results Framework ......................................................... .......................................... 53 The Project Development Development Objective ...................................................... ....................................................................................... ................................. 53 Intermediate Intermediate Outcome Indicators Indicators .................................................. .......................................... 54
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B. Arrangements Arrangements For Results Monitoring..................................................... ............................................................................. ........................ 55 C. Instruments for Ongoing Supervision: Grant Reporting and Monitoring (GRM), Implementation Implementation Status Status and Results (ISR), (ISR), and Letter of Representatio Representation n (LOR)..................... 56 D. BCCRF Results Framework Framework ................................................... .......................................... 57 E. BCCRF Mid-Term Evaluation Evaluation .................................................................................. ....... 58 Mid-Term Evaluation Design ................................................................ ................................. 59 Mid-Term Evaluation for Project Grants ............................................... ................................. 59 F. Evaluations At The Program, Project, And TF Levels - BCCRF Evaluation and Completion report, Project Implementation and Completion Reports (ICR), GRM Completion Tab ……………………………………………………………………………………………. 59 CHAPTER 9. DISCLOSURE OF INFORMATION .................................. ................. ................................... ................................... ........................ ....... 61
Project Information Documents (PID) ................................................... ................................. 61 Project Appraisal Documents Documents (PAD) ..................................................... ...................................................................................... ................................. 62 Status of IBRD/IDA IBRD/IDA Projects in Execution ..................................................................... ....... 62 Environmental Environmental Action Plans ........................................................................... ........................ 62 Integrated Integrated Safeguards Safeguards Data Sheets................................................ .......................................... 62 Environmental Environmental Assessment Reports ............................................................... ......... .............................................................................. ........................ 62 Resettlement Instruments and Indigenous Peoples’ Development Plans ............................... 63 Procurement Procurement Opportunities and Contract Contract Awards .................................................................. 64 Trust Funds ................................................................ ........................................................ ............................................................. ..... 64 Implementation Implementation Completion Completion Reports ..................................................... ...................................................................................... ................................. 64 IEG Evaluations Evaluations .............................................................................................. ........................ 64 ANNEX 1. TEMPLATE FOR PROJECT GRANT REQUEST ................................ ............... ................................... ......................... ....... 65 ANNEX 2. THE OPERATIONS PORTAL AND LINKS TO TEMPLATES -- PCN, PAD, ISR, AND ICR DOCUMENTS ......................................................................................................................... 70 ANNEX 3. BACKGROUND ON CONCEPT NOTE TEMPLATE ................................. ................ ................................... .................... 72 ANNEX 4. PROJECT APPRAISAL DOCUMENT (PAD) -- GUIDELINES ................................... .................. ................... 76 ANNEX 5. ANNUAL PROJECT FINANCIAL FINANCIA L AUDIT SAMPLE TERMS OF REFERENCE ..... 80 ANNEX 6. SAMPLE PROGRESS REPORT OUTLINE ................................... ................. .................................... ................................. ............... 84 FIGURES AND BOXES
Box 3.1 Figure 3.1 Figure 3.2 Box 4.1 Figure 4.1 Figure 4.2 Figure 5.1 Figure 6.1 Figure 7.1 Figure 8.1 Figure 8.2 Figure 8.3
Trust Fund Good Governance – Practices and Behaviors BCCRF (TF-71208) Organizational Structure Indicative Roles and Responsibilities for BCCRF Management Project Grant Criteria Bangladesh Climate Change Strategy and Action Plan (CCSAP) – Objectives Matrix Project Grant Cycle – Implementation Schedule Hierarchy of Accounts Grant Disbursement Categories List of Procurement Standard Bid Documents and Templates Sample Results Framework Sample Results Monitoring Indicators Indicative Results Framework for BCCRF
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ACRONYMS ADP AIS AMS AUS BCCRF BP CAS CCSAP CFAA CFP DA DFID DPP EA EAP EBC ECNEC ERD EU FMS FMR GFR GOB GRM GSD GPN GPP HR IRIS ICB ICR IFS IER IEG IDA IPDP IPCC ISDS ISR IUFR LEG LOA LOR MOEF M&E
Annual Development Plan Activity Initiation Stage (SAP Activity approval processing) Administrative Manual Statement Activity Update Stage (SAP Activity deliverables monitoring) Bangladesh Climate Change Resilience Trust Fund (TF071208) Bank Procedures Country Assistance Strategy Bangladesh Climate Change Strategy Action Plan Country Financial Accountability Assessment Concessional Finance and Global Partnership Designated Account (former Special Account) Department for International Development for the United Kingdom of Great Britain and Northern Ireland Development Project Proposal of the GOB Environmental Assessment Environmental Action Plan Ethics Business Conduct Executive Committee of the National Economic Council (NEC), Planning Commission, GOB External Relations Department, MOF, GOB European Union Financial Management Specialist Financial Management Report Grant Funding Request Government of Bangladesh Grant Reporting and Monitoring General Services Department General Procurement Plan Global Partnership Programs Human Resources Integrated Records Information Systems International Competitive Bidding Implementation Completion Report Interim Financial Statements Impact Evaluation Report Independent Evaluation Group International Development Association Indigenous Peoples Development Plan Intergovernmental Panel on Climate Change Integrated Safeguards Document Sheet Implementation Status and Results Interim Un-Audited Financial Report Legal Department Loan Department Letter of Representation Ministry of Environment and Forests Monitoring and Evaluation
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MDTF NCB NEC OPCS PAD PPAR PCN PDO PEC PID PIU PIP PO QBS QER QCBS RFP RVP SASDI SBD SOE SPN TFast TOR TTL TPP
Multi-Donor Trust Fund National Competitive Bidding National Economic Council, GOB Operations Policy and Country Services Project Appraisal Document Project Performance Assessment Report Project Concept Note Project Development Objective Project Evaluation Committee, GOB Project Information Document Project Implementation Unit Project Implementation Plan Purchase Order Quality-based Selection (for Consultant Services) Quality Enhancement Review Combined Quality- and Cost-based Selection (for Consultant Services) Request for Proposals Regional Vice President South Asia Social, Environment & Water Resources Unit Standard Bidding Documents Statement of Expenditures Supervision Trust Fund Accelerated Support Tools (Former e -Trust Funds) Terms of Reference Task Team Leader Technical Project Proposal
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C Ch haap ptteerr 11.. B Baacckkg grro ou un nd d aan nd dC Co on ntteexxtt
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Background 1.1 Bangladesh is one of the most climate vulnerable countries in the world. Rising global temperatures are likely to increase the frequency and intensity of cyclones in the Bay of Bengal as well as monsoon rainfall, resulting in catastrophic floods in the Ganges – BrahmaputraMeghna Basin. Sea level rise and the consequent coastal flooding and saline intrusion into aquifers constitute serious threats. The challenge of climate change – exacerbated by the country‘s high population density – is significant in view of the likely impact on people‘s livelihoods and on Bangladesh‘s capacity to improve its medium -term growth performance and thereby lift some 55 million people out of poverty. 1.2 Over the last three decades, Bangladesh has adopted various policies to address climate change. The country has invested heavily in adaptation measures such as, flood management schemes, coastal embankments, cyclone and flood shelters, as well as raising roads and highways and research and development toward climate resilient farming. As a result, Bangladesh‘s ability to manage disasters, in particular, floods and cyclones, has improved dramatically since 1991. 1.3 Nevertheless, the challenges and concomitant investment requirements are enormous. With a view to building a medium- to long-term program for enhancing resilience to climate shocks and facilitating low carbon and sustainable growth, Bangladesh launched its first Climate Change Strategy and Action Plan at the UK-Bangladesh Climate Change Conference in London in September, 2008. This strategy was updated in September 2009. This strategy, Bangladesh Climate Change Strategy and Action Plan 2009 (CCSAP)1, identifies six main pillars: (i) food security, social safety and health; (ii) comprehensive disaster management; (iii) infrastructure; (iv) research and knowledge management; (v) mitigation and low carbon development; and (vi) capacity building. 1.4 In the wake of the London conference, a multi-donor trust fund for climate change was proposed as a modality for the development partners to support Bangladesh in implementing the CCSAP. Following this, the Bangladesh Climate Change Resilience Fund (henceforth referred to as BCCRF), with contribution from bilateral donors was set up in May 2010 following the signature of a Memorandum of Understanding. 1.5 The BCCRF will be managed and implemented by the Government of Bangladesh. A technical assistance portion of the BCCRF will be executed by the World Bank with agreement of the Government of Bangladesh. On behalf of the contributing Development Partners, and in consultation with the Government of Bangladesh, the World Bank will, for a limited duration, ensure due diligence requirements on the BCCRF (including fiduciary management, transparency and accountability) and ensure projects are implemented with due regard to economy, efficiency and effectiveness.
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Government of the People‘s Republic of Bangladesh: Bangladesh Climate Change Strategy and Action Plan 2009
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Objectives of the BCCRF 1.6 The objective of BCCRF is to support the implementation of Bangladesh‘s 2009 CCSAP2, a ten-year program (2009-2018) aimed at building the capacity and resilience of the country to meet the challenge of climate change. 1.7 The BCCRF will finance activities designed to achieve the CCSAP‘s goals and support one or more of the CCSAP‘s pillars. The following section summarizes the CCSAP pillars. 1.8
Pillar 1: Food security, social protection and health Carrying out of a series of activities related to food security, safe housing, employment and access to basic services, including health, including inter alia: (a) Increasing the resilience of vulnerable groups, including women and children, through development of community-level adaptation, livelihood diversification, better access to basic services and social protection (e.g., safety nets, insurance) and scaling up. (b) Developing climate change resilient cropping systems, fisheries and livestock system to ensure local and national food security. (c) Implementing surveillance systems for existing and new disease risks and ensuring health systems are geared up to meet future demands. (d) Implementing drinking water and sanitation programs in areas at risk from climate changes (e.g., coastal areas, floods and drought prone areas).
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Pillar 2: Comprehensive disaster management Carrying out of a series of activities related to the further strengthening of comprehensive disaster management systems to deal with the increasingly frequent and severe natural catastrophes as a result of climate change, including inter alia: (a) Strengthening the capacity of the government, civil society partners and communities to manage natural disasters, and ensure that appropriate policies, laws, and regulations are in place. (b) Strengthening community-based adaptation programs and establishing them in each of the disaster prone parts of the country. (c) Strengthening Bangladesh‘s cyclone, storm surge and flood early warning systems to enable more accurate short, medium and long term forecasts.
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Pillar 3: Infrastructure
Carrying out of a series of activities to ensure that existing infrastructure is well maintained and fit for purpose and put in place urgently needed infrastructure to deal with the likely short and medium-term impacts of climate change, through inter alia:
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Moreover, the BCCRF will support future amendments to the CCSAP subject to the agreement of the Management Committee (see Chapter 2).
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(a) Repair and rehabilitation of existing infrastructure and ensuring effective operation and maintenance systems. (b) Planning, designing and constructing urgently needed new infrastructure to meet the changing conditions expected with climate change. (c) Undertaking strategic planning of future infrastructure needs, taking into account the likely: (a) future patterns of urbanization and socio-economic development; and (b) the changing hydrology of the country because of climate change. 1.11
Pillar 4: Research and knowledge management
Carrying out of a series of activities to estimate the likely scale and timing of climate change impacts on different sectors of the economy in order to inform planning of future investment strategies, including inter alia: (a) Modeling climate change scenarios of Bangladesh by applying global climate change models and methodologies at regional and national levels. (b) Modeling the likely hydrological impacts of climate change on the Ganges-BrahmaputraMeghna system to assess likely future system discharges and river levels in order to derive design criteria for flood protection embankments. (c) Monitoring and researching the impact of climate change on ecosystems and biodiversity. (d) Researching the likely impacts of climate change on the macro-economy of Bangladesh and key sectors, and contributing to developing a climate proof national development plan. (e) Researching the linkages between: (i) climate change, poverty and vulnerability and (ii) climate change, poverty and health, in order to identify possible interventions to increase the resilience of poor and vulnerable households to climate change. (f) Establishing a Centre for Research and Knowledge Management on Climate Change (or a network of centres), to ensure that Bangladesh has access to the latest ideas and technologies from around the world and to ensure that data are widely and freely available to researchers. 1.12
Pillar 5: Mitigation and low carbon development
Carrying out of a series of activities to reduce Bangladesh‘s carbon emission, now and in the future, including inter alia: (a) Developing a strategic energy plan and investment portfolio to ensure national energy security and lower greenhouse gas emissions. (b) Expanding the social forestry program on government and community lands throughout the country. (c) Expanding the ―greenbelt‖ coastal afforestation program with mangrove planting along the shoreline. (d) Seeking the transfer of state of the art technologies from developed countries to ensure that Bangladesh follows a low-carbon growth path.
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(e) Reviewing energy and technology policies and incentives and revise these, where necessary, to promote efficient production, consumption, distribution and use of energy.3 1.13
Pillar 6: Capacity building and institutional strengthening
Carrying out of a series of activities to strengthen the capacity of Bangladesh‘s government
ministries and agencies, civil society and the private sector, including inter alia: (a) Reviewing and revising, where appropriate, all government policies (sector by sector) to ensure that they take full account of climate change and its impacts. (b) Mainstreaming climate change in national, sectoral and spatial development planning and ensuring that impacts on vulnerable groups and women are prioritized in such plans. (c) Building the capacity of key government ministries and agencies to take forward climate change adaptation. (d) Building the capacity of the government to undertake international and regional negotiations on climate change, as regional and international cooperation is essential in order to build necessary capacity and resilience. (e) Building the capacity of the government, civil society and the private sector on carbon financing to access various global climate funds. 1.14 With a view to capacity building and institutional strengthening, the Bank will execute part of the BCCRF specifically related to the preparation of analytical work and capacity building activities, as broadly identified under the CCSAP pillars.
Broad Principles and Objectives of the Implementation Manual 1.15 This implementation manual summarizes the policies and practices for the implementation of BCCRF. The manual will be presented to the Management Committee (See Chapter 2) for endorsement. The manual includes BCCRF‘s governance structure, criteria for accessing funds, monitoring and evaluation arrangements. The manual also makes references to the World Bank procedures in exercising fiduciary due diligence of the BCCRF. 1.16 The World Bank‘s Board of Executive Directors approved the Management Framework for World Bank-Administered Trust Funds (2007), the key theme of which is the alignment of trust funds into the Bank‘s operational and administrative policies and procedures. Hence, the implementation manual for the BCCRF complements the internal policies and procedures of IDA or the World Bank. Specifically, the processes and approval responsibilities for the project cycle of recipient-executed grants financed by trust funds are integrated with the operational policies and procedures applicable to projects financed by IDA credits and grants. In the same manner, Bank-executed and Bank-managed activities and products funded by the BCCRF would adhere to Bank policies and procedures. 1.17 Since this manual offers guidance on accessing, utilizing and accounting for the BCCRF resources, it is intended, primarily, for potential and actual recipients of grants and sub-grants 3
Several pilots of renewable off-grid energy have been undertaken in Bangladesh. Scaling up of the successful pilots, including those in scattered coastal settlements, would contribute to achieving low carbon development.
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financed by the BCCRF and their project implementation units (PIUs). The manual is also useful to Bangladesh‘s development partners , Bank staff working on BCCRF, the BCCRF secretariat, and the task teams involved in the identification, appraisal, supervision and evaluation of the projects and programs financed by the BCCRF. 1.18 This manual aims to: (i) introduce key concepts related to implementation activities financed by the BCCRF; (ii) present clearly the procedures for the preparation of grant requests and the documents required for the processing and approval of BCCRF grants; (iii) provide tools, such as templates and report formats for the approval process and for the implementation of project grants; and (iv) describe the roles and responsibilities of the BCCRF governance tiers, Bank TTLs as well as the recipients of BCCRF grants. 1.19 Finally, the implementation manual is intended to be a living document which will continue to be updated, incorporating new developments, agreements, and recommendations to improve the efficiency and effectiveness of the BCCRF‘s implementation. For the most part, revisions to the manual would relate to modifications to the BCCRF that are strategic in nature, such as changes to the CCSAP. The Management Committee – as one of the BCCRF governance tiers described in Chapter 2 C – will approve all revisions to the manual.
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C GO OV VE ER RN NA AN NC CE E :: F Fiirrsstt,, S Seecco on nd d aan nd dT Th hiirrd dT Tiieerrss Ch haap ptteerr 22:: G O Ovveerraallll P Po olliiccyy aan nd dD Deecciissiio on n--M Maakkiin ng g
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Governance Arrangements 2.1
The governance arrangements proposed for the BCCRF will consist of two tiers:
A Governing Council which will provide overall strategic direction and guidance to BCCRF and ensure its alignment with the CCSAP; and A Management Committee which will be responsible for developing a work programme, ensuring that the BCCRF is implemented in line with the agreed implementation manual, and considering grant requests submitted by various line ministries and other eligible institutions.
2.2 The above two tiers will be supported bya Secretariat will be established, as part of the Ministry of Environment and Forests‘ Climate Change Department, to support the Management Committee and Governing Council and manage the day-to-day operations of the BCCRF. 2.3 Both the Governing Council and the Management Committee will be chaired by the Government, and will include representatives from line ministries, Development Partners and Civil Society.
A. First Tier: Governing Council 2.4
The primary responsibilities of the Governing Council are to:
Oversee overall management and utilization of BCCRF
Approve DPPs prepared for projects to be funded by BCCRF
Review the achievement of results envisaged by the BCCRF
Provide advocacy support
2.5
Provide advisory guidance on program strategic goals and alignment with CCSAP, grant criteria and high-level issues, such as, transfer of fiduciary management responsibility to GOB
Issue resolutions at close of Governing Council meetings endorsed by the majority (defined as 80% of members) Membership of the Governing Council is proposed as follows: a)
Minister, Ministry of Finance
b)
Minister, Ministry of Food and Disaster Management
c)
Minister/State Minister, Ministry of Environment and Forests (Chairperson of the Governing Council)
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d)
Minister, Ministry of Foreign Affairs
e)
Minister, Ministry of Water Resource
f)
Secretary, Ministry of Environment and Forests (Member Secretary of the Governing Council)
g)
Secretary, ERD, Ministry of Finance
h)
Secretary, Finance Division
i)
Secretary, Ministry of Planning
j)
Representative from Contributing Development Partners-1
k)
Representative from Contributing Development Partners-2
l)
Representative from Civil Society-1 (Nominated by the Government of Bangladesh)
m)
Representative from Civil Society-2 (Nominated by the Government of Bangladesh)
n)
Country Director of the World Bank
The precise representation and voting rights of the Governing Council would be decided at the Council‘s first formal meeting. However, it is envisaged that the World Bank Country Director is a member of the Council on an observer status and hence would not have any voting rights. The development partners and civil society representatives will also not vote on approval of DPPs, but will otherwise be full voting members of the Council. 2.6 Designation of Council members . The Governing Council shall have a Chairperson, a Vice-Chairperson, Treasurer and a Secretary. The Minister/State Minister, Ministry of Environment and Forests shall serve as the Chair of the Council, while the Secretary, Ministry of Environment and Forests shall serve the Council as its Member Secretary. The Governing Council has the same membership as Government Climate Change Trust Fund Trustee board, with the donor and civil society representatives added. 2.7 Tenure of the Council. The tenure of the Council shall be for a five year period. The representatives from development partners and CSOs shall serve the Council for a five year period4. The Government will appoint new members CSOs at the beginning of the Council‘s tenure. 2.8 Resignation: Representatives of the DPs and CSOs to the Council may resign at any time through providing written notice of his /her resignation to the Chairperson of the Governing Council. 2.9 Vacancies in the Governing Council: Any vacancy occurring on the Council in respect of CSOs and DPs representatives may be filled for the unexpired term through nomination by the government.
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When there are more than 2 development partners contributing above US$10 million, membership in the Governing Council may be conducted on a yearly rotating basis. The DPs will decide among themselves who will represent them in the Governing Council.
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2.10 Meeting rules. The Governing Council will meet at least twice a year but additional special meetings may also be called by the Chair to discuss urgent issues. The Governing Council will discuss policy matters and strategic issues that are referred to it by the Management Committee. It will make policy decisions based on agreements reached through debate, discussion and striving for consensus. 2.11 The role of the Chair. The Chair is responsible for ensuring the efficient operation of the Governing Council, specifically: maintaining order in the meeting and decorum in the discussion process; seeking to direct the discussion towards making final policy decisions that can be agreed through consensus; involving all members of the Governing Council in such a way that allows all viewpoints to be presented and debated; ensuring that the views of non-voting members of the Governing Council are sought and heard. The Chair is accountable for ensuring that all prescribed processes for debate and decision-making are followed and that all policy decisions are accurately recorded. 2.12 Decision Making. The Governing Council will operate by consensus. However, in the event that no consensus can be reached, the Chair will instruct the Governing Council to use majority voting. A decision will be passed if a majority of the voting members agree. In practice, the majority will constitute 80% of the voting members. 2.13 Recording of meetings and decisions. Before the end of each meeting, the Chair shall present a summary of the main discussions and conclusions of the meeting. Any decisions endorsed by the Governing Council shall be appended to the Chair‘s summary of that meeting. The summary and the Governing Council decisions/endorsements will be public documents. The Secretariat will arrange appropriate recordings of the proceedings of each meeting; circulate draft minutes for comments to members within 10 working days, request members to send their comments within 10 working days following receipt of the draft minutes, and post the final minutes approved by the Chair of the Governing Council on the website within 30 working days. 2.14 Amending the rules and procedures. The rules under which the Governing Council operates may be amended by following the decision-making processes described in paragraph 2.12.
B. Second Tier: Management Committee 2.15
The primary responsibilities of the Management Committee are to:
Review and endorse the Implementation Manual
Review and endorse the BCCRF‘s work program and budget allocations
Carry out a detailed review of and endorse grant requests submitted by the secretariat – recommend projects for preparation (including DPP by the line agency and appraisal of the World Bank). Ensure that grant requests submitted are in line with the agreed implementation manual If a TPP is necessary for funding project preparation, approve it with intimation to the Governing Council. Review and endorse the reports prepared by the BCCRF Secretariat for submission to the Governing Council as well as for public dissemination
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2.16 Once the Management Committee is formed and convened for the first time, it has the prerogative to revise its policies and procedures, including the composition of the Committee members, thereafter. 2.17 The Management Committee will endorse the Implementation Manual of the BCCRF during the first Management Committee meeting. The Management Committee will be responsible for initial identification of the projects submitted, ensuring that the BCCRF is implemented in line with the agreed implementation manual. It will consider grant requests for project proposal forwarded by the Secretariat. The Committee will be responsible for approval of the projects for conducting Appraisal by the World Bank following standard Bank procedure (see chapter 4 for further details). 2.18
At the outset, the membership of the Management Committee is proposed to consist of: 1. 2. 3. 4.
Secretary, MOEF - Chair Additional Secretary (World Bank), ERD Member, Planning Commission Two representatives from contributing DPs5 - with one DP vote (and the other DP observer) 5. Representative from the WB 6. One Representative from civil society 7. Joint Secretary (Development), MOEF – as the designated contact point of BCCRF It is envisaged that a representative from concerned Ministry/Division (not below the rank of Joint Secretary/Joint Chief) will present their project to the MC and the Division Chief, Planning Commission (concerned sector) will also attend the relevant meetings. However, as these two members will change depending on the sector being discussed, they will not be permanent and voting remembers of the MC. 2.19 Decisions without meetings. It is envisaged that most decisions of the Management Committee will be made without in-person meetings to facilitate the operation of the trust fund and the implementation of the activities funded by the BCCRF. The Management Committee will take decisions by e-mail, audio or video conferences between in-person meetings. Indeed, if decision has to be made via correspondence, it is proposed that a decision will be circulated and endorsed on a ‘no -objection‘ basis within 5 working days. In case of an objection, a meeting will of the MC will be called. 2.20 Method of voting. The Management Committee will endeavor to reach consensus in decision-making. However, in the event that no consensus can be reached, it may be necessary to call a formal vote on matters before the Committee. In that case, majority voting will be used in order to protect the interests of all parties to the Fund. In practice, a decision can be approved with the votes of 6 out of 7 members (including the Chair). The Chair will be accountable for ensuring that voting takes place in a fair, credible and transparent manner. 2.21 In-person meeting rules. The Management Committee will meet in Dhaka on an ―as needed‖ basis during the implementation period of the BCCRF but at least six times a year. A 5
When there are more than 2 development partners contributing above US$10 million, membership in the Management Committee may be conducted on a yearly rotating basis.
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meeting of the Management Committee may be called if it is considered to be necessary by a majority of the members. The Secretariat shall give notice of the date and venue for each meeting to the members and in consultation with the Management Committee members may invite other observers to the meetings as it deems appropriate. The Secretariat shall prepare the provisional agenda for the meetings and the relevant documentation and shall provide these to the Management Committee members no later than 5 working days prior to the meeting. 2.22 Record of in-person meetings and all decisions made through in-person meetings and without meetings
The reports and recommendations of the Management Committee and minutes of its meetings will be prepared by the Secretariat and shared with its members. Before the conclusion of each meeting, the Chairman shall present a summary of the main discussions and conclusions of the particular me eting. Any decisions endorsed by the Management Committee shall be appended to the Chair‘s
summary of that meeting.
Management Committee decisions will be public documents. The Secretariat will arrange for the appropriate recording of the proceedings of each meeting, agree them with the meeting members, and issue them within 20 working days. The draft minutes of Management Committee meetings will be circulated to its members within 10 working days of the meeting. Management Committee members will be given 5 working days to comment on them from the date of such circulation.
2.23 Amending the rules and procedures. The rules under which the Management Committee operates may be amended by following the same decision-making processes described in paragraph 2.19. 2.24 Managing potential conflicts of interest . An issue for discussion or decision brought up to the Management Committee may give rise to a potential conflict of interest on the part of a Management Committee member. In such a case, a member representing an entity, or affiliated with an entity, which is either a sponsor or an implementing agency for the proposed activities under deliberation by the Management Committee, will be allowed to participate in the deliberation. However, such member will be required to abstain during the ensuing decisionmaking process.
C. Secretariat 2.25 A secretariat will be established in the Ministry of Environment and Forests, to support the Management Committee and Governing Council and manage the day-to-day operations of the BCCRF. The secretariat will be headed by a Joint Secretary or an official of a higher rank, who plays an important coordinating role for all the projects supporting the Bangladesh CCSAP, in particular those that are funded by BCCRF.
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2.26 The Secretariat, once operational, will manage the day-to day operations of BCCRF on behalf of the trust fund recipient (Government of Bangladesh), and collaborate with the WB team for each individual grant approved under the BCCRF program. The Secretariat will liaise with Government and NGO implementing agencies as necessary. 2.26 The Governing Council will approve the set up and funding of the secretariat to be proposed by Ministry of Environment and Forests, once it is considered and recommended by the MC (A TPP may need to be prepared for that purpose). The Secretariat staff would ideally be GoB employees to ensure its long term sustainability. If needed, consultants would be hired and paid for by the BCCRF with the approval of the Management Committee. 2.27
The following are the main work responsibilities of the Secretariat:
A. Policy Council and Management Committee Meetings
Prepare agenda and documents for Governing Council and Management Committee Meetings – in collaboration with the World Bank team – and ensure full attendance and participation Prepare the BCCRF work plan and budget in collaboration with the WB team. Liaise with the line ministries to help prepare grant requests to be tabled for MC consideration Handle logistical arrangements for Management Committee and Policy Council meetings Guide Governing Council and Management Committee members – in collaboration with the World Bank team – to achieve the meetings‘ objectives, and promote effective meeting procedures and behaviors Facilitate preparation of closing resolutions/agreements reached for meetings, recording proceedings in Minutes Maintain open communications with the World Bank team, resolving day to day issues, and raising higher level concerns to Management Ensure that the Implementation Manual is updated to reflect recommendations from the Governing Council, Management Committee, and the W orld Bank team
B. Advocacy, Communications, and Coordination
Ensure alignment and harmonization of the BCCRF and its potential partners and stakeholders with the Bangladesh CCSAP, and provide cross-sector coordination. Conduct Advocacy and Knowledge Dissemination for the BCCRF Participate in national and international climate change events in Bangladesh, and maintain abreast of activities carried out by other entities in the field of climate change Become familiar with the Implementation Manual for the BCCRF to inform prospective clients Facilitate knowledge exchange and share lessons with external parties regarding Climate Change activities and issues Support development of the Website and other media communications Prepare materials and data regarding the BCCRF and arrange for production and dissemination using various mediums Make logistical arrangements for public grant signing events, including the media, donors, and stakeholders
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C. Transition to Government‘s Financial Management of BCCRF
In recognition of Government of Bangladesh‘s expressed intention to financially
manage the BCCRF following the closing date of the Administration Agreements signed by the Bank and the development partners, capacity building is deemed to be necessary to achieve GOB‘s objective. The secretariat is responsible for the preparation of a concept note – for endorsement by the Management Committee – for funding under the BCCRF of a recipient-executed grant aimed at building the capacity of an institution (either within or outside the government) that would be subsequently responsible for the administration of the BCCRF. Technical assistance, training and other forms of institutional development will be the primary activities under the proposed recipient-executed grant.
2.28 An independent assessment of the selected institution‘s capacity is proposed to be carried out at mid-term review. With the successful implementation of the capacity building grant and a favorable outcome of the independent assessment, the subsequent recommendation to channel donor funds directly to the specific entity to manage the BCCRF is expected. At the appropriate time agreed to by GOB and the BCCRF, the Bank will return all uncommitted amounts to the BCCRF donors and the latter, where possible, would proceed to channel the funds to GOB in accordance with the procedures, guidelines and legal arrangements of the donors.
D.
Expert Panel
2.29 It is envisaged that an expert panel will be set up to provide specific short term advise and support the Secretariat and the Management Committee (and if desired the Governing Council as well) especially on any technical aspects including reviewing proposals put forward for funding under BCCRF. ToRs for this panel of experts will be approved by the MC and the panel would be funded by BCCRF. The responsibilities of the panel will be agreed by the MC but will include Any technical aspects including reviewing proposals put forward for funding under BCCRF Provide sectoral expertise on technical issues as necessary Share relevant international level best practice Will advice the secretariat, MC, GC and the W B team as required
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C Ch haap ptteerr 33:: W Wo orrlld dB Baan nkk R Ro olleess aan nd dR Reessp po on nssiib biilliittiieess
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A. Organizational Structure 3.1 The International Development Association (IDA) or the World Bank, the Department for International Development of the United Kingdom of Great Britain and Northern Ireland (DFID), and the Government of Denmark, the Government of Sweden and the European Union are entering into a Multi-Donor Trust Fund Agreement for ensuring due diligence requirements on the BCCRF (including fiduciary management, transparency and accountability) and ensuring projects are implemented with due regard to economy, efficiency and effectiveness. Other donors may, in future, contribute to the BCCRF, and would agree to the same terms and conditions of the Agreement between IDA and current contributing donors and of comingling of funds. At the time of creation of the BCCRF, four donors were contributing to the establishment of the fund: UK, with a contribution of GBP 60 Million (US$86.7 million equivalent), Denmark, with a contribution of DK10 Million (US$1.6 million equivalent), Sweden, with a contribution of SEK 90 million (US$11.5 million equivalent) and the EU, with a contribution of EUR 8.5 million (US$10.4 million equivalent). 3.2 The BCCRF is designed such that, except for well-defined analytical work and knowledge management/dissemination activities, all investments will be executed by the Government of Bangladesh and designated agencies. 3.3 The Management Framework for World Bank-Administered Trust Funds approved by the Board on October 30, 2007, laid out Bank Management‗s efforts to bring TFs into the Bank‗s main business processes. One of the pillar of the Framework aims at more strategic alignment of the TF portfolio at the Corporate, VPU and country levels. Bank Responsibilities
3.4 The Bank exercises internal controls in the governance of trust funds. Trust Fund policy, risk assessment, and governance structure are overseen by the Bank‘s Board of Governors and Executive Directors, Audit, Budget, and Finance Committees, and the Committee on Development Effectiveness. Roles and responsibilities of these groups are defined in the Trust Fund Financial Compendium (December 2008). Upon receipt of donor ―contributions‖ to a t rust fund, the Bank converts the funds into a ―holding currency‖. Allocation of funds/grant awards are made to projects or activities that are approved by the trust fund governance body, in accordance with the objectives and criteria for the trust fund, defined in the legal agreement between the Bank and the donor(s). 3.5 The World Bank shall appoint a program team to oversee key aspects of the BCCRF (this team is referred to, interchangeably, as the WB team or Bank team throughout the rest of this document).
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Transparency, Accountability and Good Governance.
3.6 For Bank executed activities, the Bank contracts independent audits to confirm that all expenditures incurred were for eligible activities under the BCCRF program, while individual implementing agencies (grant recipients) contract annual independent audits of their accounts. Performance or procurement audits may also be undertaken to promote efficiency and transparency. All TTLs must be Bank regular staff and be ―Accredited‖ as TF managers , making them knowledgeable and accountable of the Bank‘s fiduciary responsibilities, in particular, Procurement and Financial Management. Consultants (short- and long-term) are not authorized to be TTLs for a Trust-Funded Activity. 3.7 All activities financed through the BCCRF would be governed by Bank Policies (OP) and Procedures (BP), in particular, OP/BP 14.40, AMS 15, the Trust Fund Handbook, the Trust Fund Financial Compendium, and LOA disbursement procedures applicable equally to Loans, Credits, Grants, and Trust Funds. The following are key behaviors for good governance:
Box 3.1 Trust Fund Good Governance – Practices and Behaviors Tripartite Open Communications, Coordination, and Harmonization -- Work as one team, avoid one party dominance, communicate informally to resolve issues, and create a website to inform about the BCCRF. Transparency and Accountability -- Use of Funds is clearly aligned with the structure of themes and activities under the program, as understood by Client, Donor, and Bank as partners Client Ownership and Capacity Building -- Recognize client needs and facilitate knowledge transfer to enhance development aid effectiveness and achieve lasting results, per the Paris Declaration of Aid Effectiveness Establish Realistic Goals for the Short- and Medium term -- Deliver outputs to meet expectations and achieve visible development impact Open and Fair Competition in Procurement -- Procure competitively and select most cost-effective solution
3.8 Internally, staff can seek advice, and address their questions and concerns, e.g. conflict of interest, with the Department of Institutional Integrity (INT), or the Office of Ethics and Business Conduct (EBC). These units help staff members uphold core values of honesty, integrity, respect and openness, and abide by the rules, policies and principles of employment they agreed to when they joined the Bank Group. In case of perceived misuse of funds or other complaints, any external party or individual may report their concerns to: Fraud and Corruption Hotline, PMB 3767 13950 Ballantyne Corporate Place Charlotte, NC 28277 USA Toll free phone number: 1-800-831-0463 Collect calls: 1-704-556-7046
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B. The World Bank Team 3.9 To date, the WB team has led the negotiations with the donor(s) and the client, and has worked to organize, structure, and administer the overall design and implementation aspects of the TF. The WB team will be based in the WB Office Dhaka. Following the effectiveness of the BCCRF, the WB team will carry out the operational requirements of the trust fund, as required by IDA, on both the domestic and global fronts. The task teams responsible for different aspects of operationalizing BCCRF would tap into World Bank fiduciary staff resources during the design, negotiation, and implementation of the grant activities. Task teams ensure that: all activities financed under the TF are aligned with the objectives of the BCCRF, expenses incurred are eligible, and due diligence to economy and efficiency is performed.6 Roles and Responsibilities
3.10
The following are the main work responsibilities of the WB Team:
A. Support to BCCRF implementation
Support and facilitate the functioning of the BCCRF, including providing technical assistance as required Provide technical support in the design and implementation of climate change activities Contract experts as needed to support the BCCRF Work closely with the Ministries of Finance, Planning, and Environment (in particular the BCCRF secretariat) as champions of the CCSAP Provide support as required to ensure appropriate communication for BCCRF Prepare materials and data regarding the BCCRF, in consultation with the secretariat Prepare mission agenda in close coordination with implementing agencies and other stakeholders, and handle logistical arrangements
B. Ensuring due diligence and coordination
Maintain open communications with both Donor(s) and various government agencies, resolving day to day issues Promote transparency and accountability in the use of funds, in particular, compliance with the Bank‘s procurement and financial management guidelines Ensure compliance with the objectives of the BCCRF Administration Agreements signed between the donor(s) and the Bank, and the Grant agreements signed between the Bank and the grant recipients Provide support to development partner coordination meetings
C. Support to Grant Processing
Support the processing of grants and brief potential grant recipients of the grant cycle, policies and procedures for grant requests, and respond to queries
6
On account of the technical leadership of designated TTLs in specific areas, they will conduct project appraisal and supervision of project implementation. Within the World Bank‘s administrative structure, the teams responsible for project appraisal and supervision are distinct from those that undertake program management to ensure efficiency and transparency.
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Monitor and facilitate knowledge transfer to Government implementing agencies for preparation of the Project Grant Request, in coordination with the TTLs Provide input into the Concept Note prepared by the TTL for Bank approval – as needed - and ensure alignment with the Government Project Grant Request and the BCCRF criteria Assist TTLs in processing grant approvals through GFR (Grant Funding Request)
D. Progress Reporting & Monitoring
Prepare an annual progress report on the BCCRF. The annual progress report will include progress on grant disbursements, pipeline projections, actual expenditures, and progress towards achieving indicators. The annual progress report will be submitted to the Management Committee, Policy Council and all donors. Identify and monitor 5-year results outcome indicators for the BCCRF as a whole (results matrix indicators) Review and consolidate various progress reports submitted by government implementing agencies for inclusion into the annual progress report Ensure that information on project performance submitted in all Grant Reporting and Monitoring (or GRMs) are reflected in the annual progress report Prepare final evaluation and Completion Report at closing
E. Accounting and Financial Management
Maintain program accounts, monitor financial needs of the BCCRF, manage donor contributions, and ensure expenditures incurred are for eligible activities Establish procedures for payment and filing of invoices Respond to donor, partner, or stakeholder requests for financial and technical information regarding the BCCRF program Prepare annual financial reports to incorporate into progress reports noted in part D above Ensure that grant Recipients and Bank TTLs understand the terms and conditions for use of funds Monitor compliance with audit reporting by implementing agencies Respond to the Bank‘s Internal Audit Department (IAD) or TQC requests. Post audit and Financial Management Reports (FMR) in website
F. Filing and Record Keeping Systems
Establish filing folders in the Bank‘s automated filing system – IRIS (Integrated Records and Information Systems) and file all Program documents, using complete subject reference per filing convention
WB team composition
3.11 The WB team would be headed by a Program Manager, and staffed with a Portfolio Monitoring/Results Specialist as well as a communication expert (who would work jointly with the secretariat and Bank team) and a program/financial analyst or administrative support staff, as necessary.
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3.12 The WB team staff would be World Bank employees, competitively selected, in accordance to policies established by the World Bank Human Resource Services (HRS)7 and they would report – managerially – to the Sector Manager of the Bank‘s South Asia Social, Environmental and Water Resources (SASDI) Unit. The World Bank team staff would abide by the Bank‘s Staff Rules , Principles of Employment and Standards of Professional Conduct . 3.13 Staff members of the World Bank would become familiar with all aspects of the work of the unit, in particular, the Implementation Manual, Bank Trust Fund Policies and Procedures (Trust Fund Handbook, Disbursement Procedures, Procurement Guidelines and related AMS15, Operating Systems [SAP, TFast (e- Trust Funds), IRIS, and Client Connection ], and electronic filing and record keeping. Their functional responsibilities described under paragraph 3.10 above would be assigned as follows: Program Manager, responsible for leadership and management of the work program, program team staff supervision, and tasks under (A) Supporting the BCCRF Implementation and (B) Ensuring Due Diligence and coordination Portfolio Monitoring and Results Specialist , responsible for tasks under (C) Support to Grant Processing, and (D) Progress Reporting and Monitoring Communication Specialist, who would work jointly with the secretariat, responsible for ensuring all aspects of communication regarding BCCRF Program/Financial Analyst and admin support as necessary , responsible for tasks under (E) Accounting and Financial Management, (F) Filing and Record Keeping Systems
3.14 Every grant proposal will be managed by TTLs in their respective sectors (e.g. disaster management, urban, agriculture etc).
C. The summary of roles and responsibilities Figure 3.1 and 3.2 below summaries the roles and responsibilities of the different teams working with the BCCRF.
7
See the Bank’s Human Resources website, “Staffing Programs” for a description of the various types of appointments.
23
24
25
BANGLADESH CLIMATE CHANGE RESILIENCE FUND (BCCRF) (TF071208)
Figure 3.2 INDICATIV E ROLES AND RESPONSIBIL ITIES FOR BCCRF MANAGEMENT GOVERNING COUNCIL ROLE
Strategic Guidance
MANAGEMENT COMMITTEE
SECRETARIAT
WORLD BANK TEAMS
IMPLEMENTING AGENCIES
Review and Approval
Management/Advocacy/ Communication/Coordination
Fiduciary & Technical Advisory Services
Execution
(i) Advisory guidance on BCCRF strategy ensuring its alignment with CCSAP, grant (i)Review and endorsement of criteria, and high-level issues s uch as Implementation Manual transfer of fiduciery responsibility to GOB
WORK RESPONSIBILITIES:
(i) Prepare documents for Policy Council and Management Committee Meetings a nd, respectively, produce minutes of such meetings, to include in progress reports
(ii) Oversee overall management and utilization of BCCRF
(ii) Review in detail I nitiating Project Grant Requests and recommend for preperation
(ii) Conduct Advocacy and Knowledge dissemination for the BCCRF
(iii) Approve projects to be funded under BCCRF (including DPP)
(ii i) Review and Endorse Work program and Budget Allocations
(iii) Coordinate work among stakeholders, trustee, and recipients, and ensure harmonizati on with the Government CCSAP
(iii) review achievement of results
(iv) Reports prepared by the Secretariat for s ubmission to the Policy Council and for public dissemination
(iv) Lead on GOB's startegy on transition of financial management of BCCRF to GOB
(iv) advocacy support
(v) If project preparation requires funding, approve relevant TPP
(i) Dra ft Concept Note/PAD/Grant Agreements, and Apprai se, Negotiate, and Supervise grants with Government implementing agencies
(ii) Comply with WB Financial and Procurement Guidelines for implementation of grant projects, including sa feguards and other fiduciary trustee responsibil ities
(i) Preparation Stage: Prepare Initi ating Brief (see Template) and DPP for GOB approval ; Negotiate Grant Agreement (ii) Execute Activities financed by the grant, engaging stakeholders at the community, regional, and central levels, (iii) Conduct monitoring and evaluation of agreed Results Indicators
(iii) Produce final Grant Implementation Completion Report (ICR).
(iv) Procure goods, works, and services, in accordance with Bank Guidelines;
(v) Maintain Program Accounts, and monitor financial needs of the BCC Fund
(v) Mai ntain separate accounts, and contract annual audits;
(v) issue resolution at close of PC meetings endorsed by majority (80%)
(vi) Produce quarterly progress reports, and final evaluation as agreed with TTLs.
Planning Commissi on or Ministry of Finance, GOB
Secretary, Ministry of Environment and Forests, GOB
Director, BCCRF Secretariat
BCCRF Program manager
PIU Manager
CONVENE:
Annually
Three times per year (or upon request by the Secretariat Program Manager)
Duration of BCCRF Projects
Duration of BCCRF Projects
Duration of Project
# MEMBERS:
15
4
3
Multiple
Multiple
Program manager, Results speciali st, Communication
CHAIR:
ERD-MO F (1 )
Joi nt Sec reta ry or hi gher ra nki ng offi ci al
Civil Society Representative nominated by the Chair (2)
Ministry of Environment & Forests (1)
Other experts
Development Partner (main contributors) (maximum 2)
D on or R ep re se nt at iv es ( 1 )
I ns ti tu ti o na l D ev el o pme nt /Tr an s it io n
W or l d B an k a s O bs er ver
R ep res en ta ti ve o f W or l d B an k (1 )
GOB Line Ministires (10)
MEMBERS:
a/
Public Sector Line Agencies and Approved NGOs: Multiple PIU Manager with Project Team, aligned TTLs , One per Inves tment Operati on /AAA with grant Activities/Components Bank Fiduciary Units, Accounting, and Resource Management Staff
Representative of Civil Society (1) a/ Ministers of: Finance, Environment & Forests, Food and Disa ster Management, Foreign Affairs, Water Resources; Secretaries of: Environment and Forests, ERD, Finance and Planning
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C HE EG GR RA AN NT TP PR RO OJJE EC CT TC CY YC CL LE E:: F Frro om mD Deessiig gn n Ch haap ptteerr 44:: T TH tth hrro ou ug gh hN Neeg go ottiiaattiio on nss aan nd d IIm mp plleem meen nttaattiio on n
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A. Objectives 4.1 The BCCRF was established to finance climate change activities aligned with the CCSAP. The CCSAP aims at building a climate resilient economy and society in Bangladesh. Line Ministries of the Government of Bangladesh, and NGOs and Civil Society Organizations8 , may apply for grants that finance activities within the six pillars of the CCSAP and/or, when faced with the catastrophic effects of a climatic event, the Disaster Relief Fund. Grant Criteria
4.2 The following is a summary of grant eligibility criteria for the Government executed component of BCCRF:
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C HE EG GR RA AN NT TP PR RO OJJE EC CT TC CY YC CL LE E:: F Frro om mD Deessiig gn n Ch haap ptteerr 44:: T TH tth hrro ou ug gh hN Neeg go ottiiaattiio on nss aan nd d IIm mp plleem meen nttaattiio on n
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
A. Objectives 4.1 The BCCRF was established to finance climate change activities aligned with the CCSAP. The CCSAP aims at building a climate resilient economy and society in Bangladesh. Line Ministries of the Government of Bangladesh, and NGOs and Civil Society Organizations8 , may apply for grants that finance activities within the six pillars of the CCSAP and/or, when faced with the catastrophic effects of a climatic event, the Disaster Relief Fund. Grant Criteria
4.2 The following is a summary of grant eligibility criteria for the Government executed component of BCCRF:
Box 4.1 Project Grant Criteria for GoB Executed Component
Grant Beneficiaries: Defined target population impacted by climate change Grant Executor: Government of Bangladesh line agency Grant Amount: Between US$15 to 25 Million ( indicative )* Eligible Activities: Identified activities that meet CCSAP objectives Basis of Approval: Approved Project Grant Request and DPP, World Bank Project Appraisal, and signed Grant Agreement between GOB and the World Bank Implementation Period: Three years (indicative), with possible one year extension, based on satisfactory performance, and follow-up grants Results Monitoring: Baseline, Mid-term and Final evaluation of outcomes based on agreed results indicators Grant Administration: Priority given to proposals that use existing project units of development-type operations to administer the grant
Note: * The minimum and maximum amounts were based on assumptions regarding the expected size of the total contributions to the BCCRF and on cost effectiveness of carrying out the appraisal and supervision of the individual grants.
Objectives of the CCSAP
4.3 The BCCRF would finance, exclusively, activities that clearly meet the objectives of the CCSAP. The activities proposed for funding under the BCCRF must be directly linked to one or more of the objectives of the pillars of the CCSAP. The BCCRF Secretariat will hold regular briefing meetings to inform the public and interested applicants regarding the program objectives and its eligibility criteria. Prospective applicants may refer to the Objectives Matrix (See Figure 4.1 below) that shows sample eligible activities linked to the objectives under each of the six pillars of the Strategy.
8
The modality for CSOs and NGOs applying for the fund is given in section C below.
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Figure 4.1 BANGLADESH CLIMATE CHANGE STRATEGY AND ACTION PLAN (CCSAP) – OBJECTIVES MATRIX Pillar Objective Sample Activities 1 E L C A N I I C E L O I S S E R
2 T R N E E T M S E A G S I A D N A M
To increase the resilience of targeted communities vulnerable to climate change
To strengthen comprehensive disaster management systems to deal with increasingly frequent and severe natural catastrophes
3 R U T C U R E T S A R F N I
• • • •
• • • •
•
•
To develop climate-proof infrastructure in disaster-prone coastal zones or other impacted areas
• •
•
Plan and develop food security Plan and develop safe housing Diversification of Formal- or Self-Employment and Community Livelihood Introduce or scale up program to strengthen public health surveillance systems Protect access to basic health and education services
Update policies, laws, and regulations for declared state of emergency Strengthen management capacity of government, civil society, and communities for disaster programs Establish adaptation programs in disaster-prone coastal areas Improve effectiveness of cyclone, storm surge, and flood early warning forecast and evacuation strategies Carry out urban modeling for future infrastructure needs to support projected socio-economic growth and the changing hydrology induced by climate change Plan, design, and build new infrastructure to meet the conditions of a changing climate Develop systems and strengthen capacity for operation and maintenance to respond to climate events Retrofit infrastructure features to adapt to climate change
4 • E T G N E D M E E L G W A O N N A K M
To obtain and apply current knowledge, strategies, and techniques to contain climate change impact on the population and the economy
•
• • • •
Estimate the probability, scale, and timing of climate change events through studies, research, and modeling of climate change scenarios in Ba ngladesh Model the hydrological impact of climate change on the Ganges-BrahmaputraMeghna system to assess likely future discharges and river levels in order to design flood protection embankment Determine the impact of climate change on ecosystems and biodiversity Research the impact of climate change on economic sectors Assess the impact of climate change on poverty, vulnerability & health. Develop the feasibility to establish and operate an international think tank for climate change management and adaptation in Bangladesh, such as the proposed International Center for Adaptation, Research, and Knowledge
5 • • N N O I O T B A R G A I I C T M
To design and implement activities to reduce carbon emissions
• • • • •
6 G N I D L I U B Y T I C A P A C
•
To strengthen the capacity of government agencies, civil society, and the private sector to address the effects of climate change
• •
•
Develop strategic energy plan and investment portfolio to ensure national energy security, energy efficiency and lower greenhouse gas emissions Transfer state of the art technologies to help Bangladesh follow a low-c arbon path (e.g. clean coal) Review energy and technology policies and incentives to promote, when feasible, efficient production, consumption, distribution and use of energy Expand the social forestry program on government and community lands throughout the country Expand the ―greenbelt‖ coastal afforestation program with mangrove planting along the shoreline, and lower emission from agricultural land Pilot renewable off-grid energy in scattered costal settlements Pilot multi-purpose use of irrigation water for efficient water management Review and amend government policies by sector to ensure they take full account of climate change and its impact Mainstream climate change in national, sectoral, and spatial development planning Produce and disseminate media advocacy and education regarding the socio economic vulnerability and impact of climate change on natural resources, public health and the environment and how to contribute to mitigate effects Strengthen capacity and training within the country‘s civil service to implement the climate CCSAP and participate globally in international and regional negotiations on climate change
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B. The BCCRF Grant Process 4.4 The project grant process is a three-phase process – preparation , implementation , and evaluation . The first preparation stage includes initial design, detailed preparation, appraisal, grant approval, and declaration of effectiveness of the grant from the BCCRF. Due to the urgent need to adapt to climate change and prevent socio-economic loss and damage to communities and the environment, the grant preparation cycle should be compressed as much as possible and ideally to under a year. Historically, the project preparation cycle in Bangladesh has taken two to three years to complete. It is desirable therefore, that projects put forward for funding under the BCCRF are in advanced stages of preparation and design in order to accelerate the process. The Secretariat and the WB Team would play a significant role in coordinating partners, maintaining and monitoring a processing schedule, and accelerating along the process to prevent slippage. First Phase: Project Preparation
4.5 Line ministries, responsible for sectors affected by climate change, will be invited to prepare a project grant request (see Annex 1). The line ministry team may contact the BCCRF Secretariat and WB team to inform them of their intent. The project grant request should be submitted to the management committee (MC). Submission by email is acceptable. 4.6 The Management Committee – with advice from the expert panel, if needed – will review grant requests to ensure that projects proposed for funding are: (i) consistent with the BCCSAP; and (ii) at an advanced stage of preparation. The Management Committee will also need to ensure no duplication by the proposed project and another investment and full ownership on behalf of the implementing line ministry. In parallel the Bank team prepares a Concept Note for internal Bank review. 4.7 The Management Committee will recommend projects for preparation. The line ministry team will complete the detailed preparation of the project (DPP). The Expert Panel may be called upon to help and advice at this stage. Detailed description and costing of each activity, feasibility studies, technical specifications, terms of reference for consultants, procurement documents, and project financing plan, including budgetary needs will all need to be prepared. Project management and administration arrangements for implementation are also defined and costed. Annex 2 has a checklist of various aspects that the project proposal should address, and be made evident in the documents to facilitate the approval towards a project grant. 4.8 When the line ministry has completed the preparation of the project, it will agree with the Bank team on the date for grant appraisal 9. The Bank‘s team will, independently, assess the technical, economic, financial, institutional as well as environmental and social viability of the project. The Bank team will ensure that the activities are aligned with the CCSAP, and that the project is ready for implementation. The team includes technical subject experts, financial and During appraisal, the Bank will carry out the same fiduciary and safeguards assessment as it does for IBRD or IDA-financed projects. This entails the assessment of risks during implementation, such as political, social, environmental, administrative, managerial and financial, and identifies ways of mitigating those risks to ensure timely and successful project implementation. If the Environmental and Social Safeguards Assessment is not feasible by Appraisal, the Bank may agree on the preparation of an Environmental and Social Management Framework (ESMF) to be incorporated into project implementation. Furthermore, an assessment of the proposed project’s “susceptibility to corruption” is carried out, considering the sector and country 9 environment and the nature of the inputs needed for the project. In case of medium or high risk projects, an anti-corruption plan will be prepared through a collaborative process, and will be monitored during implementation. 9
procurement staff to assess the fiduciary aspects for the use of the funds. During this process, donors and other stakeholders may be invited to participate in discussions to ensure ownership, collaboration, and harmonization. In order to expedite and fast track the appraisal process , projects put forward for funding under BCCRF should be in an advanced stages of preparation and design. A fully prepared project (a project that has all feasibility studies, costing, impact assessments satisfactorily completed – see Annex 2 for more details) will be appraised in the shortest time possible . Such prepared projects would ideally be appraised within 60 days. 4.9 If project preparation warrants grant support, a TPP may need to be prepared and approved by the Management Committee. In such cases a financial agreement would need to be signed between ERD and the WB to access funds from BCCRF. 4.10
Once the DPP is finalized, it will be submitted to the Governing Council for approval.
4.11 In parallel, following the completion of the appraisal mission, the Bank team will prepare the negotiations package (that will include Project Appraisal Document (PAD), a Draft Grant Agreement, an invitation letter to Negotiate, etc) for review and clearance by the Bank‘s Country Director for Bangladesh. 4.12 Once the negotiation package is cleared by the Country Director and the DPP is approved by the Governing Council, negotiations on the grant agreement will take place between ERD on behalf of Government of Bangladesh and the World Bank, with the Recipient Government Agency playing a key role. In the case of BCCRF, it is envisaged that the Ministry of Environment and Forests, as the co-coordinating ministry will also be invited to participate in the negotiations. If DPPs of more than one project to be funded by BCCRF is approved in one Governing Council meeting, the discussions and signing of the grant agreements for those projects can take place simultaneously. The negotiated Grant Agreement (along with the Transmittal memo from CD to RVP and PAD) will then be submitted to the Regional Vice President (RVP) of the World Bank. 4.13 A Grant Agreement, for each project, is expected to be signed by a Ministry of Finance official, on behalf of the Government of Bangladesh, and by the Country Director in Bangladesh, on behalf of the World Bank. A grant signing ceremony may be arranged by the Secretariat, and would include representatives from the donor(s), the project executing agency, other partners and stakeholders, and the media. 4.14 The Grant Agreement may include some prerequisites of disbursements to ensure fiduciary due diligence, such as establishment of a commercial Bank account, appointment of financial, administrative, or technical staff for the implementation of the Project, approval of the Procurement Plan, or other conditions such as approval of a directive or policy essential to achieve the objectives of the project. Once the Grant is declared effective , the project documents will become public information in accordance with the Bank‘s disclosure policies. At this time, the Loan Department will accept Withdrawal Applications . Grant disbursement forms and procedures are the same as for Loans and Credits, and are available through Client Connection . Second Phase: Project Implementation
4.15 Much preparatory work has been completed to arrive at the project start line, when funding becomes available to carry out the activities of the project. During the project 29
preparation and appraisal stages, consideration would be given to the staffing and functional responsibilities of a project management group, often referred to as the Project Implementation Unit (PIU). The PIU is regularly staffed with four to six individuals, depending on the functional responsibilities of existing line departments of the government. The PIU normally takes the lead in organizing a launch workshop, with the Secretariat, the Bank, and donor(s) also playing a participatory role. The workshop serves multiple purposes, among others, to:
Disseminate knowledge to stakeholders of the activities that are starting execution Reviewing and confirming agreement on the designation of responsibilities for executing each project activity and its respective timeline Inform activity/thematic team groups of the fiduciary aspects of the project (procurement and financial management), monitoring and reporting requirements, and other logistical arrangements for implementation. Share knowledge and describe roles and responsibilities. Answer questions that benefit all participants
A sample implementation schedule is shown in the figure below: BANGLADESH CLIMATE CHANGE RESILIENCE FUND (BCCRF) Figure 4.2 Project Grant Cycle -- Impleme ntation Schedule g
n s i n n o i o t i l o t e C l a t p u l n m a a o r v C E G
Pre-Start Q1
----YEAR 1 ----Q2 Q3 Q4
Q1
----- YEAR 2 ----Q2 Q3 Q4
Q1
----- YEAR 3 ----Q2 Q3 Q4
----- YEAR 4 ----Q1 Q2 Q3
Appointment of Activity/Component Leaders and Team Members Preparation of Specifications Project Disbursement Conditions Met Project Launch Workshop Launch of Public Tenders Activity A Execution Activity B Execution Activity C Execution Activity D Execution Semester Progress Reports WB Project Supervision Missions Annual Grant Audits Mid Term Evaluation (GOB, Donor & Bank) Final Results Evaluation
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4.16 The project grant, referred to by a Trust Fund Number, carries the same fiduciary controls as a Loan or Credit administered by the Bank. In particular, the Bank and the Recipient must ensure that the funds are used exclusively to finance the agreed activities and objectives of the BCCRF and of the individual project grant. Accordingly, the Bank administers and supervises the grant activities with due diligence to economy, efficiency and effectiveness. The Recipient and the Bank comply with the Bank‘s Procurement and Financial Management Guidelines, and ensure transparency and accountability in all aspects of the use of funds. 4.17 Progress reports would include the physical, financial, procurement, and results monitoring for each Activity financed under the project, as well as issues, recommendations, revisions, updated timeline, and upcoming work program and targets. Each thematic/technical team would be responsible for submitting to the PIU their semester progress report. In turn, the PIU would consolidate and aggregate all information to produce a total progress report, analyzing progress towards achievement the project‘s development objectives. 4.18 A Bank team, with possibly members of the Secretariat, would undertake regular implementation support mission every six months to review the implementation progress of the grant project activities. The team would review all technical and fiduciary aspects of the project, and consult beneficiaries and stakeholders. The Bank team would review progress reports, project accounts, do random checks of receipts backing Withdrawal Applications, and “Supervision plays a significant review procurement documentation subject to post role in the ultimate success or review such as selection on the basis of quotation. At the end of the visit, an Aide Memoire failures of projects – well summarizing progress, issues, and supervised projects are twice as recommendations, would be issued and endorsed likely to succeed as poorly by the PIU manager and the Bank Task Team supervised operations” Leader. During the year, the Bank team will follow up on project execution and assist in resolving issues. In addition, the Task Team at the Bank Independent Evaluation Group (IEG) prepares an Implementation Status and Results The World Bank (ISR) Report to management, rating implementation progress. The ISR is used Bank-wide to aggregate implementation progress and assess achievement of development go als. 4.19 A joint GOB-Bank mid-term review takes place mid way, with the participation of all stakeholders. The teams carry out field visits to verify results achieved to date, in particular, in reference to the monitoring indicators by project activity and objective. Furthermore, one of the key goals of the review is to help prevent any slippage in the timeline for completion of the project as timely delivery of the benefits of the activities and the use of grant funds is of the essence. Third Phase: Grant Closing and Evaluation
4.20 The official project Closing Date is specified in the Grant Agreement, and it is the date by which all goods, works, and services have been rendered so that the project activities are complete. No invoices may be dated past the completion date, as such expenditures would be ineligible. Invoices may be processed for payment after the Closing Date but before the EndDisbursements Date, as specified in the Grant Agreement. Any funds remaining in the Project‘sTrust Fund Account will be returned to the donor, or disposed of per the terms of the
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Legal Agreement between the donor and the Bank. Any expenses not claimed before the enddisbursement date become the liability of the Client (grant recipient). 4.21 An outline for a final Implementation Completion Report (ICR) is agreed as the project completion date nears. Both the GOB and the Bank prepare reports and exchange their lessons learned and recommendations from their perspectives. The report details the implementation experience from all aspects of the operation, addressess sustainability, and documents results achieved and lessons learned. After the project and PIU closes, some staff may move back to their technical units where project activities transition into their operational phase and are overseen by those government line departments.
C. Funding Program for Civil Society and NGOs Context of civil society participation
4.22 The goal of the Civil Society and NGO funding mechanism under the BCCRF is to support the development of grassroots mechanisms for communities to increase their resilience to the impacts of climate change and to support applied and/or action research that would strenghten the community capacity for climate resilient planning. Adaptation to climate change is the adjustment of peoples‘ lives to changing climate scenarios in the sh ort, medium and longterm timeframes. The community adaptation mechanisms would need to address changes to physical and ecosystems functions and socio-economic dimensions. The approach in Bangladesh would need to be locally driven and capture the emerging opportunities from climate change. Similarly, enhancing the capacity to make community-based climate resilient planning would require developing necessary planning tools and addressing the present knowledge gap areas through policy / applied research. 4.23 It is expected that a lead implementation agency will lead the design of the NGO and Civil Society Funding program and prepare the Grant Request. This entity would also prepare separate operating procedures to award grants and enter into contractual agreements with NGOs and/or civil society. 4.24 The Secretariat, in consultation with the WB team and expert panel will present a shortlist of implementation agencies to the MC. The MC will recommend the leading option to the Governing Council to make the final decision on the agency. The resulting Project Grant Request for the NGO and Civil Society Funding Program will undergo the same review procedures outlined above. This program‘s operating procedures would be ready by project Appraisal stage. Guiding principles for engaging Civil Society and NGOs as sub-grant recipients
4.25 Four guiding principles for engaging Civil Society and NGOs as sub-grant recipients to ensure the effectiveness of the program would be considered: (i) The program would adopt a strategic and holistic approach that targets clear climate change scenarios. Each of the projects funded under the program would fit within the scenarios; (ii) Any organization receiving subgrants must demonstrate how it will contribute to advancing the skills and knowledge required for communities to adapt to extreme climate variabilities and climate change. Organizations requesting funds for community-based adaptation should . have an established presence in the
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relevant region where the project will be implemented. The climate change program would build upon the foundation of other projects that the organization is already implementing; (iii) The projects would include community leadership and local governments while ensuring gender sensitivity; and (iv) Emphasis would be placed on transparency, information and learning to ensure sustainability of the program and replication in other parts of Bangladesh. 4.26 In addition, communities may be guided by a recently published toolkit – Building Resilient Communities: Risk Management and Response to Natural Disasters through Social Funds and Community-Driven Development Operations. It presents good practices to help achieve results, http://siteresources.worldbank.org/INTSF/Resources/Building_Resilient_Communities_Compl ete.pdf. Similarly, the Comprehensive Disaster Management Programme with its own funding and governance mechanism has developed useful methodologies. http://www.cdmp.org.bd/
“When a disaster occurs, communities are typically the first line of defense for poor households”
Structure and modality
4.27 The BCCRF would fund a Civil Society and NGO program to be administered by a Government designated implementing agency with the overall responsibility to process and implement the program. The implementing agency would be responsible for the call for proposals, review, monitoring, supervision, and compliance with fiduciary requirements. The implementing agency selected would have established administrative/procedural arrangements, experience and capacity vis-à-vis program management, etc. The implementing agency would have in place adequate review, approval and implementation procedures, such as: Project Implementation Plan, Environmental and Social Management Framework, Financial and Procurement guidelines etc. Where necessary, the procedures will be enhanced to include additional guidelines that are relevant to the activities under BCCRF.10 Screening of eligible proposals
4.28 The NGOs and civil organizations submitting project proposals for funding under this program must be officially registered with the NGO Affairs Bureau. Community-based organizations, research institutions and other civil groups may also submit proposals. Proposals from NGOs must be accompanied by a copy of the NGO registration and the organization‘s most recent independent financial audit. Other civil society organisations (includeing research bodies and think tanks) should have appropriate registration or permission. 4.29 Strict eligibility and screening criteria and procedures for the participation of NGOs and civil society organizations in the program will be developed during the program preparation. The review of the proposals will be done by an independent technical committee that is established for this purpose. 4.30 The technical criteria for the selection of proposals will be developed based upon Intergovernmental Panel on Climate Change (IPCC) guidelines with both global and sectoral 10
The Bank carried out consultations on the proposed community-based approaches/civil society program of the BCCRF during its March 8-13, 2009 mission. The mission team met with the Bangladesh Center for Advanced Studies (BCAS), SHIREE, IUCN, Oxfam, Comprehensive Disaster Management Programme, and Social Development Fund. It also held an informal brainstorming session with civil society organizations (CSOs) and NGOs.
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criteria including adaptation of communities, ecosystems, and enterprises. The key focus will be that the proposals are: (1) Community-based and community-driven with local partnership; (2) Connected with local development or risk reduction plans and programs; (3) Focused on adaptation to climate change and long-term sustainability; and (4) Globally, sectorally, and intellectually rigorous with the proper tools developed to ensure that the project is truly an adaptation project addressing climate change risk.
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C CH HA AP PT TE ER R 55:: B BC CC CR RF FF FIIN NA AN NC CIIA AL LM MA AN NA AG GE EM ME EN NT T:: A Acccco ou un nttss,, R Reep po orrttiin ng g,, & &A Au ud diittss
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5.1 Shortly after countersignature of the Legal Agreements between the Bank and the Donor, the Bank receives the donors‘ contributions which are depo sited in a separate Trust Fund account established solely for financing expenditures under the BCCRF (TF071208 – the To facilitate expenditure monitoring and allocation of funds by theme, ―Parent‖ account ). sector, expenditure category, or other, sub-accounts and windows are established as passthrough accounts. From these windows or sub-accounts, disbursing accounts or ―child‖ accounts are established for each approved grant under the program. Each account, whether it is a pass-through account or a disbursing account receives a TF number, and is assigned a TTL. Funds may be spent only from a disbursing account. This hierarchy of accounts facilitates accountability by each respective TTL, who must annually confirm that all expenses under their Trust Fund account were eligible under the program, as defined in the Trustee Agreement signed between the Bank and the donor, and the Grant Agreement signed between the Bank and the recipient. Figure 5.1 shows the proposed hierarchy of accounts. Management of Funds
5.2 The BCCRF is governed by the terms of the legal Agreement between the Bank and the donor(s). In turn, project grants approved for government implementing agencies (Client/Recipient) are governed by a legal agreement between the Bank as and the recipient, defining the eligible Activities and Expenditures/Disbursement Categories. Funds may be used only for the purposes and activities described in the Grant Agreement, or as formally amended. The designated TTL is responsible for supervision of the project, ensuring that funds are used for the intended activities, and that expenditures are incurred using the Bank‘s procurement and financial management Guidelines. The WB team should refer to the Trust Funds Handbook (December 4, 2008) for detailed guidance on the roles and accountabilities for Bank managers and staff in managing trust fund resources. Accountability for Use of Funds
5.3 IDA, maintains accurate accounting records by Activity and Expenditure Category, as well as Allocations agreed with the donor(s) by theme, sector, or other objective, and by recipient grant. For each recipient-executed project, or Bank-executed activity, a unique Trust Fund account is created – Disbursing or Child Account -- with a designated Task Team Leader (see Figure 5.1). Disbursing accounts are approved under a Window or Sub-Account , to facilitate reporting and accountability by purposes as agreed with the donor(s). To ensure alignment of grant funds with Bank objectives and transparency and accountability, an Activity Definition Code (P012345) is created for each Bank-executed Activity or recipient grant by the designated TTL and approved by the line manager in SAP. This includes a description of the work/project and a timetable for review and delivery. Funds may be posted only to approved Activity codes linked to the TF, or to approved expenses such as training, printing, operating materials, other, as defined in the table of Expense Restrictions (Bank executed activities) or Disbursement Categories (recipient executed projects).
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BANGLADESH CLIMATE CHANGE RESILI ENCE FUND (BCCRF) (TF071208) Figure 5.1 Hierarcy of Accounts
Main Parent Account TF071208
Project Identification through Completion Bank Staff Costs
Program Management and Advisory Services
TF________
TF_______ TTL A TF_______
Identification through Approval TF_______
Supervision through Completion TF______ _
TTL B TF________
TTLC TF_________
TTL A TF_______
TTL B TF________
Program Management TF_______ Study of Trustee Transition Phases TF________
Other
Studies TF______ _
TTLC TF_________
Government Implementing Agencies (Proposal Range of US$20 M)
TF________
Project A TF_______
Project B TF____
Project C TF ____
NGO Sub-Projects (Allocation of US$10 Million or 10% of BCCRF)
Project A TF_____
TF________
Sub-Accounts Windows Disbursing Accounts
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TFast (former e -Trust Funds)
5.4 A comprehensive automated system of Trust Fund management tools and a Trust Funds Website are available to all staff for management, monitoring and reporting on the use of trust funds. TFast integrates all aspects of the grant cycle, e.g. automated templates for submission of grant application including a workflow for review and approval and attachment of background files (GFR); progress reporting by TTLs (GRM), consolidated reports for donors (TFast Reports), Letter of Representation (LOR) – to be used for auditing purposes – signed annually by TTLs at each TF level, contributions management, and a donor center. These systems facilitate the work of the Program Manager for compliance with Trustee responsibilities. The WB team staff would become familiar with all these modules f or monitoring the use of funds and for donor reporting. In addition, the WB team would respond to request for projections of estimated disbursements, and carry out the call of funds from the donor to ensure that a sufficient balance is available to implement the program. Donor Contributions and Call of Funds
5.5 Donor contributions are defined in the legal Agreements, and are financially managed by IDA on behalf of the Donor(s) in accordance with ―Standard Provisions Applicable to the Mul tiDonor Trust Fund‖ . When making deposits, the Donor instructs its bank to include payment detail information indicating 1) amount paid, 2) that payment is for TF071208 (Climate Change Program in the People‘s Republic of Bangladesh ), and 3) date of deposit. In addition, the Donors have to provide a copy of the Donor‘s deposit instruction to IDA‘s Accounting Trust Funds Division by e-mail sent to
[email protected] or by fax sent to (202) 614-1315. Immediately upon receipt of the Contribution funds, IDA converts such funds into United States Dollars. Eligible Expenditure Categories (Bank-executed Activities)
5.6 The following are the eligible expenditure categories for Bank Activities, mainly technical and advisory services, knowledge dissemination, program administration, and project preparation, appraisal and supervision:
Consultant Fees Staff Costs Travel Expenses Media and Workshop Costs Contractual Services Equipment costs lease Extended Term Consultants Temporary Support Staff Costs
5.7 Expenditures will be restricted to these categories through SAP. Expenditures are incurred in accordance to procurement guidelines, and payments are processed through a ―Transaction Processor‖, RM Management, and /or line supervisors. The Bank may reallocate among these categories to meet insufficient funds when they are deemed not necessary to meet other expenditures.
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Financial Monitoring
5.8 IDA shall maintain separate records and ledger accounts in respect of the Contributions deposited in the trust fund account and disbursements made there from. Separate records and ledger accounts shall be kept for each trust fund. The World Bank team will review on a monthly basis the status of disbursements and commitments under each TF account, and produce a summary. Annual Financial Donor Reporting
5.9 The Bank will provide the donor(s) with an annual report on the financial and physical progress of activities financed by the Contributions, including financial information relating to receipts, disbursements and fund balance in US Dollars, the holding currency of the trust fund . The donor(s) will have access to financial data at any time through the Trust Funds Donor Center, a secure website. Within six (6) months after all commitments and liabilities under this TF have been satisfied and the trust fund has been closed, the final financial information relating to receipts, disbursements and fund balance in the holding currency of the trust fund with respect to the Contribution funds, will be made available to the donor through the TF Donor Center website, and a separate report on BCCRF program results will be sent. Financial Audits
5.10 The Bank will provide to the donor(s), within six (6) months following the end of each fiscal year, the annual single audit, comprising: (i) a management assertion together with an attestation from the World Bank Group‘s external auditors concerning the adequacy of internal control over cash-based financial reporting for trust funds as a whole; and (ii) a combined financial statement for all cash-based trust funds together with the external auditor's opinion thereon. The cost of such attestations shall be borne by the Bank. If a donor wishes to request, on an exceptional basis, a financial statement audit by IDA‘s external auditors of the trust fund established under this Agreement, the Donor and the Bank shall first consult as to whether such an external audit is necessary. The Bank and the donor shall agree on the most appropriate scope and terms of reference of such audit. Following agreement on the scope and terms of reference, the Bank shall arrange for such external audit. The costs of any such audit, including the internal costs of the Bank with respect to such audit, shall be paid by the donor. Account Earned Income
5.11 Earned investment income is credited into the parent account, to be used for the agreed purposes of the BCCRF. Administrative Fee and Cost Recovery
5.12 In order to assist in the defrayment of IDA‘s costs as Trustee, IDA may dedu ct from the contributions and transfer to itself an amount representing the actual costs of management. Management costs are those incurred by Bank staff managing the BCCRF, staff carrying out technical studies, project design, and project supervision, fiduciary accounting, financial management, and procurement staff. The Bank will debit expenditures for these various costs from the respective disbursing accounts as established in the chart of accounts for the BCCRF, and ensure that any set ceilings are not exceeded.
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5.13 In order to assist in the defrayment of the costs of fiduciary management and other expenses incurred by IDA under this Agreement, IDA may, following deposit of the Contribution by the Donor, deduct from the total Contribution of the Donor and retain for the IDA‘s own account an amount equal to one percent (1%) of the Contribution. In addition, Program administration and management costs, secretariat costs, and costs related to project activities (including appraisal and supervision) will be charged to the Trust Fund based on actual costs, and up to a maximum of US$ 4,148,518.11 The eligible categories of expenditures shall be associated overheads, short term consultants‘ fees, contractual services, equipment cost lease, temporary staff costs, extended term consultants, staff costs (including salary, benefits and indirects), travel expenses and media and workshops costs.
11
Of the total $4.14 million, program management costs are estimated at US$2.02 million. The balance of $2.12 million is the cost estimate for project appraisal and supervision (of approximately 4- 6 projects). The calculations were based on assumptions about staffing and other costs as well as the average Bank budgets for appraisal and supervision of projects financed by World Bank loans and credits.
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C CH HA AP PT TE ER R 66:: P PR RO OJJE EC CT T F FIIN NA AN NC CIIA AL L M MA AN NA AG GE EM ME EN NT T B BY Y G GR RA AN NT TR RE EC CIIP PIIE EN NT TS S:: A Acccco ou un nttss,, D Diissb bu urrsseem meen nttss,, & &A Au ud diittss
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A. Financial Management Systems And Standards The Bank‘s Financial Management Policy (OP10.02), consistent with the Bank‘s trustee 6.1 responsibilities, requires that project implementing agencies maintain adequate financial management systems, in accordance with International Accounting Standards issued by the International Federation of Accountants (see Annex 5). The Bank may accept national accounting and auditing standards that it considers to be equivalent to international standards.
Capacity Assessment of Financial Management Systems for Prospective Implementing Agencies During project preparation, the Bank will ensure that the team‘s Financial Management 6.2 Specialist (FMS) will assess the financial management capacity of the implementing agency or PIU accounting staff. The Assessment identifies financial management risks underlying the project as well as their mitigation measures, the capacities of the main implementing entity and the entities that are expected to execute sub-projects, the FM systems in place, and to identify the financial management arrangements under the proposed project that would need to be in place to meet the Bank‘s fiduciary requirements in accordance with its OP/BP 10.02 . In particular, the FMS discusses:
Technical assistance needs for establishing a financial manage ment system Acquisition of a computerized accounting systems and training Preparation of a Financial Manual for the project Appointment of qualified accountants Appointment of independent, external project auditors Design of Financial Management Reports
6.3 Specific activities to strengthen the capacity of the agency/PIU for financial management would be detailed in an FM Action Plan. The FMS also defines the financial covenants for the Grant Agreement, and any conditions for effectiveness or disbursements. Implementation of this Action Plan would be required for approval of FM systems and disbursements. This would ensure that accounting practices and financial records are maintained in accordance to international standards. Consequently, annual project audits, carried out according to International Auditing Standards, will be able to form an opinion regarding the eligibility of expenditures and due diligence for economy and efficiency under the project. The FMS continues to review financial management during project implementation, including compliance with FMRs and Audit Reports. Responsibilities of the Financial Staff of the PIU
6.4 For Bank-financed operations in Bangladesh, generally the Project Implementation Unit is responsible for maintaining financial records. It is recommended that technical assistance be contracted to establish accounting procedures, install accounting software, and develop a financial management manual for the project. The PIU would include a professional Accountant,
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whose TOR has been cleared with the designated FMS for the Bank‘s Task Team. following are responsibilities of the financial unit of the PIU:
The
maintain automated accounting records of financial transactions for the project maintain separate accounts for grant funds and payment of eligible expenditures monitor the use of funds to ensure that expenditures incurred are for project activities arranges for replenishment of the Dedicated Account to maintain a balance sufficient to finance three months‘ expenditures prepare financial management reports in accordance to the agreed format and schedules process withdrawal applications for Advances to the Designated Account, Statements of Expenditures, and Direct Payments Maintain records of contracts, invoices, and receipts, and make them available to auditors and the Bank Facilitate audits Maintain records for at least one year after the Bank has received the final Interim Unaudited Financial Report Utilize Client Connection to obtain disbursement reports, download and submit withdrawal applications, and other related documents.
6.5 The financial staff would secure a copy, and become familiar with the Disbursement Guidelines for Projects and its companion, the Disbursement Handbook for World Bank Clients , (both dated May 2006). These documents are comprehensive, and may be downloaded from Client Connection . Also, training would be available from the Loan Department on disbursement policies and procedures which are equally applicable to loans, credits, or grants/trust funds.
B. Accounting And Reporting Designated Account and Grant Advance
6.6 A ―designated account‖ (( previously called a Special Account) is a bank account, in the country‘s central bank or a commercial b ank approved by LOA and meeting several criteria), into which an Advance of the loan proceeds is deposited and from which the recipient may pay contractors, suppliers, and others to cover eligible project expenditures as they are incurred. The designated account is exclusively for holding World Bank grant proceeds. The Bank normally disburses advances into the designated account . After the grant becomes effective, the recipient may complete a Withdrawal Application requesting the Advance specified in the Grant Agreement. Payments of advances to a designated account are made in the currency of the designated account . The recipient is required to report on the use of advances deposited to the designated account in that same currency. When the recipient uses funds to finance expenditures in different currencies, for reporting purposes it uses the exchange rate in effect on the date the funds are withdrawn from the designated account. Two months after the disbursement deadline date, all undocumented advances to the designated account must be refunded to the Bank and after which the Bank may decline to allow the use of designated accounts for new loans. Designated Accounts are audited with a separate opinion (see Disbursement Handbook for more detailed instructions on operation of the designated account and advances).
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Implementation Period and Closing Date
6.7 Project expenditures are eligible to be financed from the Grant when they are incurred after the Date of Effectiveness (date of countersignature) and before the Grant Closing Date defined in the Grant Agreement, or as otherwise amended. Payments of invoices may continue to be made to the Disbursements Deadline, usually four months beyond the Closing Date. In certain projects, provisions may be made in the Grant Agreement for Retroactive Financing , which would specify a date before Effectiveness, from which project expenditures would be eligible for financing, once the grant becomes Effective. Financial Reporting and Disbursements
6.8 The Bank disburses funds to a client (grant recipient) in one of two ways: (i) on the basis of reimbursement for the cost of prefinanced project expenditures; or (ii) provides advances to the recipient for the expected cost of such expenditures. In addition, the Bank may make a direct payment to a contractor, for eligible expenses, on the basis of a request from the client. Requests for reimbursement, and reporting on the use of advances, are normally accompanied by either: (a) Summary Report - Interim Un-audited Financial Repor t (IUFRs)used for financial reporting, usually stipulated in schedule 2 of the legal Agreement; or (b) a Summary Report - Statement of Expenditure; or (c) Expenditures Records required by the Bank for specific expenditures. The level of detail required in summary Reports depends on the project, the expenditure categories, and the capacity of the client‘s financial management systems. The client and the Bank agree on the content and details of the Summary Report and any supplementary forms during project Appraisal. To be eligible to use Summary Reports to support disbursement immediately upon loan effectiveness, the client must have an adequate financial management system. Whenever possible, the report format and content should be derived from the client‘s own financial management systems. The Bank encourages the use of client system-generated reports that meet the Bank‘s requirements. To continue to use Summary Reports or begin using them during project implementation, clients are expected to maintain satisfactory financial management ratings during project supervision, and provide the Bank with Interim Unaudited Financial Reports consistent with the agreed form and content within 45 days (or other period specified in the legal agreement) of the end of each reporting period. Designated Account Advances, and Planned Forecast Expenses
6.9 Advances would be determined on the basis of a funds forecast for the two quarters (six months), as reflected in the quarterly Interim Un-audited Financial Reports. Expenditures forecasts would be realistic based on the Procurement Plan, the current implementation schedule, and commitments under ongoing contractual obligations. The initial advance for the Designated Account may be the amounts shown as forecast expenditures for the first six months activities of the approved annual work plan from the start up of the projects. The subsequent quarterly disbursements to DAs will match the additional funding requirement based on the realistic forecast of the expenditures anticipated for the six months following the date of IUFRs. (See Financial Monitoring Reports, Guidelines to Staff, OPCS, November 30, 2002).
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C. Disbursements Disbursement Letter
6.10 The disbursement letter is a notice from the Bank to the project implementing agency that specifies the disbursement arrangements to be used and the provisions of the Disbursement Guidelines that apply for the grant. These are the ―additional instructions‖ referenced in the Grant Agreement and are legally binding. The Bank prepares the disbursement letter based on discussions during project preparation and appraisal. A draft of the letter is included in the negotiations package for the project and the letter is finalized during negotiations. The Bank issues the initial disbursement letter together with the Disbursement Guidelines to the recipient when the legal agreement is signed and provides a conformed copy to the project implementing entity. Eligible Expenditures
6.11 The table below sets forth the eligible Categories of Expenditure under the BCCRF. The authorized Disbursement Percentages by Expenditure Category are to be consistent with those defined in the Financing Parameters agreed for Bangladesh, and as revised. The Financing Parameters are defined in the CAS and are available through Client Connection . The applicable amounts by Disbursement (Expenditure) Category for each project grant would be defined in the Schedule of Disbursements of the Grant Agreement. The applicable definition and restrictions for each disbursement category is also project grant-specific as defined in the Grant Agreement.
BCCRF (TF071208) FIGURE 6.1 GRANT DISBURSEMENT CATEGORIES Disbursement Category
(1) Goods (2) Works (3) Services (4) Training (5) Operating Costs TOTAL GRANT AMOUNT
Disbursement Percentage
Allocated Amount in US Dollars (to be specified in each Project Grant Agreement)
100%
US$___
100%
US$___
100%
US$___
100%
US$___
100%
US$___ US$___
6.12 Disbursement Percentage covers the cost of the item or service, installation, taxes, duties, and local transport to the project site.
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6.13 Goods means equipment, furniture, software, electronics, other, and includes commodities, raw material, machinery, equipment and industrial plant and services which are bid and contracted on the basis of performance of a measurable physical output, transportation, insurance, installation, commissioning, training and initial maintenance 6.14 Works means construction and related services such as supervision of works, and includes construction of public infrastructure and services which are bid and contracted on the basis of performance of a measurable physical output, transportation, insurance, installation, commissioning, training and initial maintenance 6.15 Services means technical assistance including related consultant expenses such as travel and subsistence, and services rendered by a wide variety of private and public entities, training or transfer of knowledge to staff and/or national consultants of the agencies implementing the program or sub-program and other stakeholders 6.16 Training means local, in country training fees from academic institutions and related educational materials, supplies, and in-country travel and subsistence 6.17 Operating costs means materials and supplies, rent and utilities, local transport, and other operating expenses incurred in implementing the project activities or management and administration of the Secretariat. 6.18 Ineligible expenditures include vehicles and foreign travel, unless specifically defined as a sub-category under goods or training for an intended purpose
D. Audits Independent Audit Scope
6.19 Agreement is reached between the Bank and the client regarding the acceptance of a government‘s supreme, independent, audit institution, or the need to contract an independent auditing firm of chartered accountants, and/or acceptance of the Bangladesh Foreign Aided Project Audit Directorate (FAPAD), designated to audit all donor financed projects in Bangladesh. The audit will be carried out within six months of the close of the financial year and a report submitted to the Bank and the Donor(s). The agreed scope of the audit is reflected in the Annual Project Financial Audit (See Annex 5, Sample TOR). The audit may examine the physical, financial, and operational aspects of project implementation. The auditors may review financial transactions, eligibility of expenditures, compliance with procurement guidelines, efficacy of internal control arrangements, and evaluation of the project performance against the project objectives. A Management Letter presenting the auditors‘ opinion also provides feedback to the project manager and financial management staff regarding any control weaknesses and recommendations for improvements. The next year‘s audit will specifically review progress on implementation of past recommendations. Auditors should not represent compliance with International Standards on Auditing unless they complied fully with all the International Standards on Auditing relevant to the audit. The Bank requires timely follow-up and remedial action on matters arising from review of audit reports, including: (a) requiring clients to account satisfactorily for questioned expenditures or to refund ineligible expenditures; (b) monitoring timely implementation of remedial action plans; and (c) imposing remedies for noncompliance as provided in the terms of financing agreements.
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Audit Disclosure
The Bank supports providing public access to information on public finances and routinely reviews the levels of transparency in connection with public finances. As part of this approach, the Bank encourages recipients to make available to the public the audit reports associated with the activities it finances. Results of audits and other financial information may also be posted in the project‘s and/or BCCRF website. 6.20
E. National Budget And Financial Issues National Budget Allocation
6.21 The project years are best aligned with the government‘s budget cycle. The project budgets will be prepared by the project management units, with the assistance of the project FM staff, on the basis of the approved procurement and implementation plans. PIUs would submit the needed project counterpart budget to the planning units of their sector ministries, in accordance to government cycles, and secure funds under their Annual Development Plan (ADP). Without counterpart funding, projects often stall resulting in investment losses or higher costs, in particular for construction activities. Planned and actual budgets, and the analysis for variances would be presented in annual progress reports, with recommendations to improve efficiency as appropriate. Country Background Financial Management Issues
6.22 The Government of Bangladesh has been addressing key financial management deficiencies identified in the Country Financial Accountability Assessment (CFAA). A series of reform programs supported by DFID, the Bank, and other development partners are underway. A joint Bank, DFID, and GOB ―Review of Institutional Arrangements for Public Expenditure, Financial Management, and Procurement‖ completed in June 2005 revealed that Bangladesh‘s public expenditure institutions need to be significantly strengthened.
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C CH HA AP PT TE ER R 77:: P PR RO OC CU UR RE EM ME EN NT T ________________________________________________________________
A. Bank Executed Activities – Contracting Consultant Services Applicable Guidelines for Selection of Consultants
7.1 In contracting consultant services for Bank-executed activities under the BCCRF, the Secretariat and Task Teams would ensure full compliance with the Bank‘s Guidelines for Selection and Employment of Consultants by World Bank Borrowers (October 2006) and AMS 15.01 (February 2010). Task teams will include a designated Procurement Specialist who would be responsible for providing technical support in the planning and compliance review/clearance of the various procurement documents and stages. The selection of all individuals and firms hired for Bank‘s own purposes are required to be processed through eConsult ant2 . This webbased tool guides staff through the selection process of hiring firms and individuals as set forth in Administrative Manual Statement (AMS) 15.01: ―Selection and use of Consultants by The World Bank Group for operational purposes‖. The system is also accessible to interested consultants so they may view opportunities, express interest, obtain documents, send proposals and communicate with the Bank in a secure online environment. Regardless of the sources of funding for an activity, either Budget or Trust Funds, the same procurement and work program controls apply. For a complete treatment of procurement procedures please consult the complete documents and guidelines available in the procurement website link to procurement website and link to bidding and proposal documents. e-Consultant Entry Requirements
7.2 The eConsultant2 tool guides the user through the six stages of the selection process: preparation, notification, sourcing, evaluation, award and post award. It contributes to the transparency of the selection process by allowing consulting firms to view opportunities, express interest, obtain documents, send proposals, and communicate with the Bank in a secure on-line environment. Consulting firms will have access to eConsultant and may be selected through various methods: (i) Full competitive selection; (ii) Simplified competitive selection; and (iii) Single Source selection. For individuals, there are two selection methods: (i) Comparative selection and (ii) Single source selection. The system also guides you through, the selection of individual consultants, either competitively or through sole source. The system provides soft and hard stops which may not let a user continue with the selection until the specific process is complete, e.g., all competitive Selections for Firms over US$250,000 must be cleared by a Procurement Specialist. A soft stop will let users continue, for example the wizard recommends a selection method, but the user may still select a different method. Other hard stops include, but are not limited to, the need to complete all required fields on a form and not having the ability to open financial proposals until the technical evaluation report has been cleared. eConsultant ID and Vendor Registration
7.3 To request processing of a contract, the user will be required to provide an eConsultant2 ID number , which is generated automatically when the user creates a new selection process. The number appears in the summary sheet of every selection, and follows you through as you enter date in each stage. Without this number, the TP is unable to process a request to issue a contract. Individual contracts are processed through the Bank‘s HRS, and
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contracts with firms are processed through the Bank‘s General Services Department (GSD). It
can be found on the summary sheet of every selection and on the status bar of every step. Furthermore, to issue the contract, a firm must obtain a Vendor Number by completing a Vendor Registration Application through Corporate Procurement. The Vendor Registration Application can be found on the Vendor Kiosk at http://go.worldbank.org/6PC0FICAE0 Review by The World Bank (Prior Review Thresholds)
7.4 Annex 1 to AMS 15.01 (Tables 1 through 5) provides details on prior review requirement of The Bank in different steps in procurement / selection process, relevant task orders and actions that require follow-up by the task team leaders. Corporate Procurement
7.5 For contracts with firms for goods and services, GSDPR is the designated authorized representative of the Bank to issue and sign contracts with with vendors. GSDPR procurement procurement officers are responsible for overseeing the contracting process, ensuring compliance with the Bank‘s procurement principles of (1) fairness, (2) transparency, (3) competition, and (4) value. TPs work jointly with with GSD to issue such contracts. contracts. The following is the link to the Corporate Corporate Procurement Manual, last revised February 2009 Link to Manual Terms of Reference and Budget
7.6 The TTL prepares the terms of reference (TOR) for the contract and a cost estimate. The amount of the expected contract would help determine the selection method and review level. The cost estimate estimate should be sufficient for the scope of work, and be based on current fees commanded by international or national experts in the respective fields needed to carry out the work. As a guidance, it may be helpful to review sample TORs in the Bank‘s intranet and in IRIS in the relevant topic of the assignment. A TOR should describe in in detail the scope of work and deliverables to prevent any misunderstanding by the client client and the consultant. TORs may include the following sections: o o o o o o o
BACKGROUND SCOPE OF WORK REPORTING OFFICE SPACE AND WORKING HOURS DELIVERABLES BILLING AND PAYMENT METHOD QUALIFICATIONS
Record Keeping
7.7 TTLs are required to keep orderly records of Terms of Reference, Request for Proposals, and Evaluation Reports, as well as the related approvals and clearances in the event of review by external auditors, or by the Bank‘s own Internal Audit Department.
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B. Procurement Of Goods, Works, And Services by The Grant Recipient Procurement Policies
7.8 Procurement is an essential activity in project execution that ultimately determines project results for intended beneficiaries. The timeliness, transparency, and cost-effectiveness of the procurement are also key factors for project success. Four basic principles guide the Bank's procurement requirements: (a) ensuring economy and efficiency in the procurement of goods, works, and services, as mandated by the Bank‘s Articles of Agreement (b) giving eligible bidders from developed and developing countries a fair opportunity to compete in providing goods, works, and services financed by the bank; (c) encouraging the development of domestic industries--contracting, manufacturing, and consulting industries--in borrowing countries; and (d) providing for transparency in the procurement process. It is the Bank‘s fiduciary responsibility to ensure that the proceeds of its loans are used 7.9 only for specified purposes of each project, with due attention to economy and efficiency and without regard to political and other non-economic influences or considerations. considerations. To this end, the Bank has established procurement guidelines for procurement of goods, works, and services required for projects, and procedures for Bank review of the procurement decisions made by recipients. Accordingly, the Bank gives great attention to both the planning and the execution stages of the procurement process. Project procurement takes place in accordance to the Bank‘s Guidelines for Procurement (October Procurement (October 2006, revised May 2010) for goods and works, and Guidelines for Selection and Employment of Consultants (October Consultants (October 2006, revised May 2010). The procurement arrangements for each operation are detailed in a Procurement Plan , which is updated annually or as needed. The Guidelines and Guidelines and the Procurement Plan become Plan become an integral part of the legal Grant Agreement. Additional instructions and guidance material on procurement are provided provided in the Procurement Manual and the Consultants Manual. The Guidelines are supplemented by OP 11.00 and BP 11.00 and Annex A of BP 11.00. which are mandatory instructions for Bank staff. It is important that both staff and the grant recipient become familiar with the procurement guidelines.
7.10 The oversight role includes advising the Recipient on good public procurement systems, systems, and working with the Recipient to promote and build their procurement capacity and to create a better control environment for procurement. The oversight role also includes the fiduciary obligations of reviewing the Recipient‘s pro curement planning and implementation, and ensuring and enforcing conformity with Bank policies and legal agreements. The TTL is the single point of communication for all correspondences with the recipient and s/he will seek assistance and advice from the designated procurement specialist (PS/PAS) on procurement matters. This will help the Task Team comply with the turnaround response time of 7 days so as not to contribute to delays in project execution. Maintaining procurement on schedule and according to plan is a priority for partners and stakeholders. Also, maintaining the PS or PAS is fully integrated into the project team this helps prevent conflict between the project design and the Bank's procurement policies and procedures.
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The Procurement Plan
7.11 To ensure procurement of goods, works, and services services financed under the grant is carried out transparently and efficiently in accordance with the Bank‘s Guidelines, a Procurement Plan is prepared. As the project content and implementing arrangements are firmed up during appraisal, the preliminary procurement plan should be refined accordingly. The final Procurement Plan, Bank procurement supervision plan, and the agency strengthening action plan are finalized in the PAD by the team‘s PS. Also, the following is a link to the Procurement Plan Template, guidelines for publishing, and the website of approved plans Procurement Plan Implementing Agency Procurement Capacity Assessment
7.12 The Bank, Bank, as part of its developmental developmental role, is interested interested in strengthening the capacity of its recipients to administer procurement in an effective and transparent way as part of sound governance and good project management. In this context, context, project teams are required as an integral part of project preparation and appraisal, to make an assessment of the capacity of the project implementing agency or project unit to administer procurement. The Procurement Specialist staff assigned to the project is responsible for carrying out the assessment using Bank‘s capacity assessment tools (questionnaire, software etc.) and provide detailed inputs to project documents (i.e. PAD, Project procurement takes place in FA etc.). accorda nce nce to the Bank’s Guidelines for Procurement ” “ Guidelines ” 7.13 The objectives of the capacity for goods and works, and assessment are to: Guidelines for Selection and “ Guidelines (a) evaluate the capability of the implementing agency and the adequacy of procurement and ”. Employment of Consultants ” related systems in place, to administer The procurement arrangements for each procurement in general and, specifically, Bankoperation are detailed in a financed procurement; “Procurement Plan” . (b) assess the risks (institutional, political, These documents form an integral part organizational, procedural, etc.) that may of the legal Grant Agreement. negatively affect the ability of the agency to carry out the procurement process; (c) develop an action plan to be implemented as part of the project, as necessary, to address the deficiencies detected by the capacity analysis and to minimize the risks identified by the risk analysis; and (d) propose a suitable Bank procurement supervision plan for the project considering the relative strengths, weaknesses and risks revealed by the assessment. 7.14 The capacity assessment should be carried out as part of the project preparation and it should be carried out by a Procurement Specialist (PS) assigned to the project. While an initial assessment is done at the PCN stage, overall procurement arrangements including procurement assessment, Bank‘s review responsibilities and risk mitigation strategies should be finalized prior to project appraisal. The nature of the project would determine the specific areas that require more in-depth analysis at capacity assessment. The assessment and development development of the action plan should be carried out with the full participation of the client and of the implementing agency to ensure ownership of the proposed actions. The actions proposed in the plan should be incorporated as project components and may be funded through the grant as
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needed. The analysis may detect critical deficiencies that need to be addressed before project launch (i.e., setting up of a procurement unit or preparation of critical bidding or contracting documentation) Procurement - Assessment of Agency's Capacity ) (see link Availability of Standard Bid Document and Procurement Templates
7.15 To assist assist and support recipient in the transparent and effective effective application of the procurement cycle, the Bank makes available standard bid documents. The following are standard bidding documents, harmonized with international and bilateral partners, for use by recipients: Figure 7.1 List of Procurement Standard Bid Documents & Templates STANDARD BID DOCUMENTS Consultants Standard Request for Proposals Consultant Sample Evaluation Report Procurement of Management Services Standard Form of Agreement for Consultant Services between Recipient and UN Agency Procurement of Works and User‘s Guide Procurement of Works – Smaller Contracts
Prequalification Document for Procurement of Works Procurement of Goods Procurement of Information Systems -- Single Stage Procurement of Information Systems -- Two Stage Supply and Installation of Plant and Equipment Procurement of Plant Design, Supply, and Installation (Engineered plant and equipment) Design, Build, and Operate – Solid Waste Facility Output- and Performance-Based Roads Contracts Bid Evaluation Form, Procurement of Goods and Works
Appraisal and Grant Negotiations
7.16
During appraisal the following additional activities should be completed:
agreement on standard bidding documents to be used for the project;
if feasible, final complete bidding documents for contracts to be let at the start of the project and in the first procurement cycle (first 12 months of the project);
issuance of a General Procurement Notice (GPN); and
draft procurement provisions for the Loan Agreement, reflecting the arrangements proposed by the PS.
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7.17 During negotiations the Bank and the grant recipient would discuss and finalize the procurement provisions in the Grant Agreement, the Procurement Plan for the initial 18 months of the project, final bidding documents for the first year of procurement, and the Bank procurement supervision plan.
A.
The Procurement Schedule of the Grant Agreement requires that prior to the issuance of any invitations to bid or requests for proposals, the grant recipient presents an agreed procurement plan
B.
The Procurement Schedule of the Grant Agreement should be in complete accordance with the terms and conditions outlined in the Procurement Section of the PAD. See link to Annex 6 of the PAD.
C. The team finalizes the
General Procurement Notice (GPN) and Requests for Expressions of Interests (if appropriate) that are to be published after Grant approval. The GPN must be published eight weeks prior to the issuance of any bidding documents.
Implementation
7.18
During project implementation, the PS assigned to the project monitors the quality of procurement by the client. The Task Team, in consultation with management, proposes adjustments of the Bank's procurement supervision plan, as appropriate, to reflect Procurement decisions require improvements or deterioration in Recipient's high-priority attention. Slow performance. The PS is accountable for the high processing by the Bank or the quality of procurement work in the projects client deteriorates their image assigned to him or her and for reporting major and diminishes project results deficiencies and proposed remedies to while increasing costs. Most management.
important, delays impact beneficiaries negatively as they are deprived from services that may affect their health, livelihood, and qualit of life.
7.19 During project implementation, the PS assigned The PS is responsible for: (a) providing quality professional input to the operations assigned to them; (b) advising the TTL and the clients on procurement, contract management, and procurement capacity building work; (c) carrying out Bank fiduciary and developmental responsibilities related to procurement; (d) seeking advice and approvals needed from higher authorities in Bank‘s operational/corporate procurement function; (e) the general quality and coordination of procurement work with concerned parties, including the Loan Department (specially for prior review contracts ) and financial management staff and Task Team members. Any issues related to procurement that may arise in the operations are assigned to them. 7.20 Procurement decisions require high-priority attention. Slow processing by the Bank or the client deteriorates their image and diminishes project results while increasing costs. There will be adequate back-up arrangements to avoid delays in procurement reviews.
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Role of Staff
7.21 The general responsibilities and accountabilities of Bank staff and managers involved in procurement work are described in the Operational Manual - BP 11.00 - Procurement . Staff maintain strict neutrality and impartiality throughout the procurement process and are prohibited from: (a) recommending to clients that they use particular firms or individuals; (b) taking over activities that are the exclusive responsibility of the client; and (c) participating, except for the fiduciary review functions, in evaluation of bids or proposals. The Bank may however, upon written request from the Recipient, supply lists of consultants following the established internal procedures. Post Reviews
7.22
The main objectives of post reviews are to: a) verify the procurement and contracting procedures and processes followed for the project, and identify noncompliance with the agreed provisions of the legal agreement, inappropriate practices or questionable decisions/actions, and whether there is any evidence of corrupt practices; b) verify (when feasible) technical compliance and physical completion of the contract in the selected representative sample; c) review and comment on contract management issues as dealt with by the implementing agencies; d) review and assess the capacity of the implementing agencies in handling procurement to determine whether adequate systems for procurement planning, implementation, and monitoring and documentation are maintained per required standards; and e) Identify remedies to correct identified deficiencies.
7.23 After the PS/PAS has conducted the post review, the supervision task team documents the review‘s findings, including the list of contracts reviewed, in an annex to the aide memoire.
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C MO ON NIIT TO OR RIIN NG GF FO OR RR RE ES SU UL LT TS S CH HA AP PT TE ER R 88:: M
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8.1 Successful use of Bank and donor resources (Loans, Credits, and Grants) is important to our key clients – individuals, households, firms, organizations, and governments in borrowing countries – where the outcomes and impact of development assistance occur and matter the most. It is, therefore, important that the Bank demonstrate that resources are achieving the desired development results. To this end, the Bank documents development effectiveness. Projects include monitoring and evaluation systems to document results. The Bank may also measure overall agency effectiveness. Monitoring indicators are designed to capture the quality of interventions at various stages of projects and programs, from initiation to completion. The projects’ results is one of the various intervention to the achieve CAS outcomes. Project design should be guided by a Results Framework intended to be useful for both project management and Bank supervision. For each project, a Results Framework and Monitoring table is designed during project preparation and included as Annex 1 of the PAD. This Annex consists of two main sections: the results framework and the arrangements for results monitoring.
A. The Results Framework 8.2 The results framework is a program logic that explains how the development objective is to be achieved, including causal relationships and underlying assumptions. It lays out the objectives of an intervention and the presumed causal relationships and underlying assumptions about how program actions will lead to the intended outcomes. This requires an understanding of the development problem(s) that the intervention is trying to solve, what the desired objective(s) is, the intermediate results that are critical for achieving the objective(s), and the required arrangements to measure progress towards these objectives. 8.3 The project‘s results framework does not capture sector outcomes or other higher level outcomes with which the project is aligned (PAD main text B.2). Higher level outcomes are beyond the responsibility of the project and do not require M&E arrangements within the project. It is important, however, that there be clear alignment between the project and the higher order strategic, program, or sector outcomes to which the project contributes. The Project Development Objective
8.4 The framework focuses on the project development objective (PDO) to be achieved and the intermediate outcomes expected. Ideally, each project should have one project development objective focused on the primary target group. The Project development “If the project is objectives answers the question: successful, what will be its principal outcome for the pri mary target group?” . This information should be used to track progress towards the PDO and to make changes in the project if necessary during implementation. The PDO should consider:
Ideally, each project should have one project development objective focused on the primary target group. The Project development objective answers the question: “If the project is successful, what will be its principal outcome for the primary target group”.
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What group is targeted directly by the project as the key recipient of project benefits? (e.g., students, farmers, residents of poor communities, small enterprises, civil servants, specific institutions, other) Immediately after the close of the project, what problem has been solved for the target group? What will the target group be doing differently after the project that should make it better off? (e.g., students learning better, residents using clean water, farmers using new techniques, civil servants working more efficiently, etc.) Is each project or program development objective (PDO) expressed as measurable changes in the behavior or condition of the target group? Do the indicators measure progress toward achievement of the PDOs? Do the indicators contain baseline values and targets?
8.5 The PDO should focus on the outcome for which the project reasonably can be held accountable, given the project‘s duration, resources, and approach. The PDO should not encompass higher level objectives that depend on other efforts outside the scope of the project. The ―Strategic Context‖ sec tion of the PAD is the place to describe how the project contributes to the higher level objectives. At the same time, the PDO should not merely restate the project‘s components or outputs. Rather, it should list the expected intermediate outcomes . Efficient use of inputs or delivery of outputs must be translated into outcomes or results for the primary target group. Intermediate Outcome Indicators
8.6 While PDO indicators normally cannot be observed or measured before the end of the project, the intermediate outcomes capture performance that can be observed or measured while the project is still under implementation. Intermediate outcomes focus on the performance of key actors (e.g., teachers, municipal governments, extension workers) and the value they add (e.g., using new skills, efficiently managing services, providing up to date information to farmers) during implementation toward achieving the PDO (e.g., student learning, access to services, use of new farming techniques). Intermediate outcomes are a strategic part of the results chain. An analysis of why intermediate outcomes were or were not achieved, even when project outputs were delivered, should reveal opportunities for improvements in project design. The indicators should be presented with baseline values and target values. The third column of the results framework shows how the indicators will be used: (i) during implementation to assess the performance of the project and to redirect it, if necessary, to achieve the PDO; and (ii) if applicable, to inform ex-post decisions. 8.7 Achieving results is important for all World Bank projects and programs. All of us have a responsibility to stakeholders and donors to manage the use of funds effectively in order to achieve maximum development impact. In addition, in signing the Paris Declaration on Aid Effectiveness (2005), the World Bank joined with countries, donors, and other development agencies in committing to specific actions to improve managing for development results. This means that a focus on results needs to be integral to operations and programs across the World operations, the Bank‘s Results Secretariat has compiled a set of points to consider at various stages of the project and program cycle.
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B. Arrangements For Results Monitoring 8.8 Monitoring of the Project Development Objectives is done throughout implementation and at completion. Thus, the design of the monitoring indicators and definition of outcomes needs to be completed by Appraisal, in particular, the data collection arrangements for integrating monitoring and evaluation at the outcome/results level (both intermediate and end of project) into project management. This includes: Institutional issues: How will monitoring and evaluation complement project management? How will participatory M&E be integrated into management and capacity building for the communities involved, if applicable?
Data collection: If the project is drawing on data collected by Government statistical offices or line agencies which statistics would be used and what is the reliability of this information? Where information is to be derived specifically for measurement of project results and outcomes, what are the associated costs and institutional responsibilities? Are institutional arrangements for data collection analyzed (responsible staff/units and time frames), the capacity of the responsible agency, and the cost for the results-based monitoring and evaluation (M&E)? If the responsible agency‘s M&E capacity is weak, does the project provide a plan and resources to strengthen capacity? Are the monitoring indicators in the results framework drawn from the client‘s M&E systems?
Capacity: Where there is limited capacity in the country to derive the necessary information, how will local capacity be supplemented through the project, and what will be the costs of doing this? 8.9 During implementation, the the Implementation Status and Results (ISR) Report describes the ISR should report on general progress towards achieving the PDO, through the defined monitoring indicators for intermediate outcomes. Subsequently, the ICR reports on achievement of outputs and outcomes at completion, addressing the quantitative and qualitative indicators defined at appraisal and/or as modified. 8.10 The following is a sample table of the Results Monitoring Indicators which are aligned with Project Components. The table would be included as Annex 1: Results Framework and Monitoring in the PAD of each grant approved under the BCCRF.
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Figure 8.1 Sample Results Framework and Monitoring
C. Instruments for Ongoing Supervision: Grant Reporting and Monitoring (GRM), Implementation Status and Results (ISR), and Letter of Representation (LOR) 8.11 TTLs are required to complete a GRM Trust Funds - Grant Reporting and Monitoring and LOR Trust Funds - LOR Exercise FY09 annually for each Trust Fund that is a disbursing grant. TTLs for Bank-executed TF activities also need to complete annually a GRM to document progress and results, and rate implementation of their grant activities by component. Other aspects such as procurement, financial management, and performance by the recipient are also rated. Furthermore, the World Bank and TTL for the BCCRF will design programspecific questions in the GRM, in particular, regarding program objectives. This is done through
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TFast management in CFP. For TFs that are linked to an operation, an ISR only may be needed instead of a GRM. ISRs and GRMs are completed once a year at minimum, and more often when needed in the case of more frequent supervision, restructuring, or poor performance. TTLs will automatically receive notice that either a GRM or an ISR is due. Trust Fund Program Managers and Sector Line Managers clear both GRMs and ISRs. Both GRMs and ISRs are available Bank-wide, through SAP, to higher level managers, auditors, and quality assurance groups. ISRs are available in the Operations Portal under the Project Activity Code. 8.12 Letters of Representation (LOR) are also sent annually to TTLs as part of the Bank‘s compliance with its trustee monitoring responsibilities (see paragraph 5.4). LORs confirm that all expenditures incurred and charged to the TF for the current Fiscal Year were eligible expenditures under that TF. LORs are also accessible through the TFast tools, and are individually approved in SAP by the Trust Fund Program Manager and the TTL‘s line managers. If any expenditures are later deemed by auditors or quality assurance groups to be ineligible under the approved grant – i.e. that either the activity or the expenditure categories were not eligible in the approved Grant Funding Request (GFR) – those expenditures have to be refunded in full to the parent TF by the managing unit, utilizing Bank Budget. Thus, TTLs should periodically review expenses posted to their activities and TFs to prevent misuse of funds.
D. BCCRF Results Framework 8.13 Achievement of the objectives of the BCCRF would be monitored through a Results Framework aligned with the objectives of the BCCSAP. The WB team would be responsible for defining and updating the Results Framework for the fund, and for consolidating and reporting on the Results Monitoring Indicators at an aggregate level for the program. Box 8.3 below presents an indicative results framework which would be finalized by the World Bank for the first progress report, to be updated annually thereafter. Figure 8.3 Indicative Results Framework for BCCRF Program Development Objective Reduce the socio-economic effects of climate change for the affected coastal area population through adaptation to climate change and mitigation of carbon emission Intermediate Outcomes
Vulnerable community members receive uninterrupted basic services in health, education, and social protection after climatic event
Outcome Indicators # of communities or regions and their population with increased preparedness for climate change impact
Intermediate Outcome Indicator - # basic health facilities established in safe areas - # of food security plans put in place - # Safe dwelling built - # individuals with new resilient employment opportunities - # of protected agricultural areas to sustain food production - Other
Use of Outcome Information # of Community leaders and members own and implement strategic plans
Use of Intermediate Outcome Monitoring - Targeted communities gain awareness of preparation needs and monitor progress - Targeted community members informed of services and gain confidence to face climatic events - Government updates mapping of adapted facilities and monitors readiness for emergency response
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Government administers effective disaster response programs
Coastal zone communities maintain mobility during and after storm surges
New Bangladeshi Center for Adaptation, Research, and Knowledge operating and disseminating work
Carbon emissions reduced
Government agencies, civil society, and the private sector have capacity to successfully redress the effects of climate change
Fund emergency relief services after a catastrophic climate event
- Official policies designed, and ratified for emergency response - Staff trained and deployed - Storm early warning systems in place - # of embanked roads, canals, berms, and other engineering works to manage flood waters - National Maintenance Plan and staff and budget to carry out repairs after climatic events
- Government monitors progress to reach goals in a timely fashion - Progress disseminated to the public
- Coastal zone communities monitor progress and increase awareness of strategies to mobilize themselves during and after storm surges - Government revises maintenance plan as needed based on damage after climatic events - Knowledge produced of impact - Government uses knowledge to of climate change on all sociodesign policies and programs that economic and environmental address climate change aspects, and recommendations adaptation and mitigation for mitigation in Bangladesh - Knowledge used to select and allocate resources to proven effective activities - Sector-specific programs - General population becomes designed and implemented to aware of technologies and reduce greenhouse gases importance of reducing the carbon - Legislation enforced supporting footprint use of low-carbon equipment and - Informs UN Framework behaviors Convention on Climate Change on Bangladeshi activities and achievement - Inform on benefits to nature and environment - Design and implement public - Public learns from mass media awareness campaigns to sensitize communications and through adults and children on climate school curriculum change consequences and - Government uses knowledge to prevention design and implement policies - Effect policy to streamline and programs climate change initiatives across sectors - # of immediate response - Government uses lessons to emergency relief operations improve subsequent emergency successfully carried out response programs
E. BCCRF Mid-Term Evaluation 8.14 The Bank, as Trustee of the BCCRF would, in conjunction with the secretariat carry out a separate mid-term evaluation at completion of two years from the start of the grants program to assess progress in achievement of the BCCRF objectives. This is in addition to specific mid-term evaluations for each project grant, designed and executed by the project TTL and the government implementing agency. The evaluation would be carried out jointly with the Government, and with donors/partners as stakeholders in the BCCRF. A special allocation would be made to carry out the mid-term evaluation under the Bank-executed portion of the grant. The review would include an analysis of GRMs and or ISRs in the case of some project grants and, in
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particular, assessment of achievement of the Project Development Objectives and Outcomes in the Results Framework. Mid-Term Evaluation Design
8.15 The scope and strategy for the mid-term evaluation would be developed to assess overall progress towards achieving the BCCRF development objectives at year 2. The evaluation may include a survey to collect data or information, or may be in the form of consultations with focal groups, or may only use existing data available from the PIUs and the Bank, or mixed methods. A consultant may be contracted to design and carry out a survey, engage stakeholders and beneficiaries, and to record progress on intermediate outcomes achieved by project grants. Forms of anecdotal, qualitative, and quantitative data may also be collected to identify benefits and issues, and gather recommendations for improvement in the second half of the BCCRF program. The mid-term evaluation may also plan for the final evaluation, and identify any aspects that would benefit from further evaluation at completion. The TOR for the mid-term evaluation would be completed by the third quarter of the second program year. The contract may be awarded for both the mid-term and final evaluation and completion, or as a two-stage contract with a subsequent submission of a proposal for the final evaluation. Mid-Term Evaluation for Project Grants
8.16 Project grants may also include in their PADs financing to carry out a mid-term evaluation and final evaluation at completion. The same provisions made for the BCCRF mid-term evaluation, in particular, technical assistance for the design and execution of the evaluation may apply to project grants. The evaluation may include recommendations for the second half of the project, including any restructuring and design of revised or new activities that may be necessary.
F. Evaluations At The Program, Project, And TF Levels - BCCRF Evaluation and Completion report, Project Implementation and Completion Reports (ICR), GRM Completion Tab 8.17 BCCRF EVALUATION AND COMPLETION REPORT. A final evaluation of the BCCRF performance and results would be carried out immediately following closure of the program. The scope and methodology of the final evaluation would be agreed by the partners. TFast also provides a template and intends to automate a completion report for programmatic trust funds. The final evaluation may also follow recommendations and lessons from the mid-term evaluation. 8.18 As part of the evaluation, each partner – the Government, Donors, and the Bank – would each respectively report on their perspective of the program and each other‘s performance. As in the mid-term, consultants may be engaged to design and carry out surveys and collect data to document inputs, outputs, and outcomes. Forms of anecdotal, qualitative, and quantitative data may also be collected to identify benefits and issues. Before the preparation of th e report, it is customary to organize a one-day conference to review the work plan to complete the report, lessons learned. TORs for the final evaluation may be prepared and work may start at the beginning of the final quarter of the program. The report will be subject to Bank internal reviews, including the TF Quality Assurance Group and CFP.
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8.19 PROJECT GRANTS ICR REPORTS . Project grants linked to operations may require only the standard ICR for operations, available also through the Operations Portal. The ICR follows standard Bank procedures and review and approval by IEG, the Bank‘s Indep endent Evaluation Group (IEG). 8.20 GRM COMPLETION TAB. All disbursing grants that complete GRMs will be required to complete an additional section for the BCCRF program at completion. The questions under the completion tab are standard for programmatic TFs, and are supplemented by sections introduced by the World Bank Team and Task Leader for the BCCRF.
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C DIIS SC CL LO OS SU UR RE EO OF F IIN NF FO OR RM MA AT TIIO ON N CH HA AP PT TE ER R 99.. D
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9.1 Trust funds are subject to the "The World Bank Policy on Access to Information", effective July 1, 2010.12 The intent to disclose information relating to a TF is included in the legal agreement(s) between the Bank and the donor(s), and in grant agreement(s) between the Bank and recipient(s). 9.2 The Bank‗s access to information (AI) policy constitutes a major shift in the information the Bank may disclose – that is, from a policy that listed which information is available to one that allows disclosure of any information in the Bank‘s possession as long as i t is not on a list of exceptions.13 Under the policy, the Bank grants access to more information than ever before – especially information about projects under implementation and the Board of Director‘s actions. At the same time, the Policy protects, among other things, the confidentiality of the deliberative processes that lead to Bank decisions and actions, as well as the relationship of trust with member countries other partners. Information is made accessible to the public in three ways: (i) posting on the Bank‘s external website; (ii) responding to requests; and (iii) declassifying certain restricted documents over time. 9.3 The AI policy will continue to apply to all TFs whose legal agreements were signed after June 1, 2002 when the World Bank Policy on Disclosure of Information came into effect.14 Subject to agreements with the donors concerned, the following information on activities financed under TFs and administered by the Bank is publicly available: (a) grant funding proposals approved by the donors; (b) aggregate financial information on the amount of donor contributions; (c) aggregate financial information on TF disbursements to specific activities or countries; and (d) the Bank‗s annual financial statements on trust funds. 9.4 Responsibilities and procedures for implementing the disclosure policy are described in the AI handbook which is available on the external web.15 The Trust Fund program Framework and Administration Agreements, as well as individual project Grant Agreement may be made publicly available. Project Information Documents (PID)
9.5 For all Bank-financed or Trust Funded operations under preparation, the Bank prepares a Project Information Document (PID) that provides a brief factual summary of the main 12
The new Policy supersedes the World Ba nk Policy on Disclosure of Information of June 1, 2002. The ten categories of information that are considered to be exceptions – i.e. , information restricted from disclosure – are as follows: (i) personal information; (ii) communications of Executive Directors' offices; (iii) proceedings of the Ethics Committee for Board officials; (iv) information subject to Attorney-Client Privilege; (v) security and safety information; (vi) information under separate disclosure regimes or investigative information; (vii) information provided by member countries or third parties in confidence; (viii) Bank‘s corporate administrative matters; (ix) deliberative information; and (x) financial information. For details, please refer to the following link of the Bank‘s external website: 13
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTANDOPERATIONS/EXTINFODISCLOSURE/0,,menuPK:64864911~page PK:4749265~piPK:4749256~theSitePK:5033734,00.html 14
Under the AI policy, the Bank would declassify and make available certain kinds of restricted information as their ensitivity diminishes over time —5, 10 or 20 years after the date on the document. The only categories of restricted information that may be declassified are deliberative and financial information (except banking and billing). Information falling under the remaining types of exceptions (e.g. personal information), however, is not eligible for declassification. 15
http://wwwwds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/06/03/000112742_20100603084843/ Rendered/ PDF/548730Access0I1y0Statement01Final1.pdf
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elements of the evolving project. A list of factual technical documents that underpin project preparation (including analytical work, assessments, surveys, etc.) is contained in the PID. The PID is Prepared when the first formal review of the proposed operation is held by Bank management, and is made publicly available. As project preparation evolves, the PID is updated. The updated PIDs are also publicly available. Project Appraisal Documents (PAD)
9.6 For each investment project proposed for Bank financing, the Bank prepares a Project Appraisal Document (PAD), which describes the project, and sets forth the Bank‘s appraisal and assessment of the feasibility of, and justification for, the project. Once the loan, credit, or guarantee for the project has been approved, the related PAD is publicly available. Status of IBRD/IDA Projects in Execution
9.7 The annual report, Status of IBRD/IDA Projects in Execution , is publicly available after it has been distributed to the Executive Directors for information. It documents the status and changes in operations. Environmental Action Plans
9.8 Environmental action plans (EAPs) are prepared by the country concerned. They describe the major environmental concerns of a country, identify the principal causes of problems, and formulate policies and concrete actions to deal with the problems. An EAP is publicly available after the country concerned has given its consent to the proposed disclosure. Integrated Safeguards Data Sheets
9.9 The Bank prepares an Integrated Safeguards Data Sheet (ISDS) for each investment project and sector adjustment operation under preparation for Bank financing, which identifies key issues under the Bank‘s safeguard policies20 and provides relevant information concerning their management in the proposed operation. The ISDS is prepared when the first formal review of the proposed operation is held by Bank management, and is made publicly available. As project preparation evolves, the ISDS is updated. It is revised before formal project appraisal; if changes to the project that are relevant to the ISDS are made after appraisal, a final revision of the ISDS is prepared. The updated ISDSs are also publicly available. Environmental Assessment Reports
9.10 Whenever the Bank requires an environmental assessment (EA), the counterpart recipient entity prepares an EA report as a separate, free-standing document. The EA report is publicly available: (a) after the recipient has made the draft EA report available at a public place accessible to project-affected groups and local NGOs in accordance with OP/BP 4.01, Environmental Assessment; and (b) after such EA report has been officially received by the Bank, but before the Bank begins formal appraisal of the project. 9.11 For financial intermediary (FI) operations or sector investment operations that are expected to have subprojects which, for environmental screening purposes, are classified as Category A under OP/BP 4.01, Environmental Assessment , each identified participating FI or
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the responsible project entity provides the Bank, before the beginning of formal project appraisal, with an assessment of the institutional mechanisms or framework in place for conducting the EAs for such Category A subprojects. After these assessments have been officially received by the Bank, and before the Bank begins formal project appraisal, the assessments are publicly available. EA reports for such Category A subprojects are publicly available after they have been officially received by the Bank. 9.12 If a recipient objects to disclosure of an EA report (or, in the case of a FI operation, an assessment) for a project, the Bank discontinues project processing, or the issue is submitted to the Executive Directors for consideration. Resettlement Instruments and Indigenous Peoples’ Development Plans
9.13 Whenever the Bank requires a Resettlement Instrument (RI) or Indigenous Peoples‘ Development Plan (IPDP) for an operation, the proposed recipient prepares an RI or IPDP as a separate, free-standing document. As a condition of appraisal of the operation, the recipient provides the draft RI or IPDP, which conforms to the relevant policy, and makes it available at a place accessible to, and in a form, manner and language understandable to the displaced or affected people and local NGOs. Once the Bank accepts the draft RI or IPDP as providing an adequate basis for project appraisal, and before the Bank begins formal appraisal of the project, the Bank makes it publicly available. After the Bank has approved the final RI or IPDP, the recipient again makes it available at a place accessible to, and in a form, manner and language understandable to the displaced or affected people and local NGOs. When the recipient officially transmits the final RI or IPDP to the Bank, it is publicly available.
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Procurement Opportunities and Contract Awards
9.14 Information on procurement opportunities under a Bank-financed project is available through the project‘s PID, the Monthly Operational Summary , and the project‘s PAD, which describes in some detail the items to be financed under the project. A United Nations publication, Development Business , publishes for each Bank-financed project, general procurement notices for goods and works to be procured through international competitive bidding, as well as services. 9.15 Information on major contract awards (a description of the contract, the name and nationality of the successful bidder, and the contract price) may be disclosed after the recipient has informed the Bank that the contract has been signed. Major contract award decisions are published in Development Business and on the Bank‘s website. Implementation Status and Results (ISR) Reports 9.16 As mentioned in Chapter 9, the ISR is the Bank‘s reporting on general progress of projects or grants towards achieving the PDO. Sections of the ISR will be extracted and automatically combined to generate the ―Disclosed ISR‖. The Disclosed ISR will include: basic Information (name, region, country, FY, PDO, and lending instrument; key dates and related projects); overall ratings for implementation progress, development objective and risk; results section (including comments); key Issues for disclosure and status of implementation; as well as financing, including disbursements. Trust Funds
9.17 The following information on activities financed under trust funds administered by the Bank is made publicly available: (a) funding proposals after they are approved by such donor(s); (b) aggregate financial information on the amount of contributions made to trust funds by such donor; (c) aggregate financial information on the amount of disbursements made from such donor‘s trust funds to specific activities or countries; and (d) the annual financial statements prepared by the Bank on trust funds. Implementation Completion Reports
9.18 Upon completion of each operation financed by the Bank through loans, grants, and credits, the Bank reviews the results, and prepares an assessment of the operation, known as an Implementation Completion Report (ICR). ICRs are publicly available after they have been distributed to the Executive Directors for information. IEG Evaluations
9.19 The Independent Evaluation Group (IEG), an independent unit within the World Bank Group which reports directly to the Bank‘s Board of Executive Directors, prepares evaluations of selected completed operations, known as Project Performance Assessment Reports (PPARs), and assessments of the impact of selected completed operations, known as Impact Evaluation Reports (IERs). PPARs and IERs are publicly available after they have been distributed to the Executive Directors.
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A AN NN NE EX X 11.. T TE EM MP PL LA AT TE EF FO OR RP PR RO OJJE EC CT TG GR RA AN NT TR RE EQ QU UE ES ST T BANGLADESH CLIMATE CHANGE RESILIENCEFUND (BCCRF) PROJECT GRANT REQUEST 1.
Project Name:
2.
Government Agency:
3.
Proponent Department:
4. 5.
Project Team Manager: Designated WB TTL:
6(a)
Date Submitted:
6(b): Projected Start Date: 6(c): Estimated Completion Date:
7(a). 8.
Estimated Grant Amount (from Cost Table below)
US$ equivalent:
CCSAP Objective: (choose from CCSAP Pillars)
9.
Target Geographic Area and Beneficiary Population:
10.
Description of Expected Climate Change Impact on Geographic Area:
11.
Target Beneficiary Population (description and number::
12.
Community Consultation Outcome:
13.
Detailed Description of Activities
13(a)
Activity A Name
7(b): Estimated GOB Contribution:
Component Name, and How Activities Address each Objective:
US$:
Expected Component Outcome:
Detailed Description:
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Outputs: Cost US$: 13(b)
Activity B Name
Detailed Description:
Outputs: Cost US$: 13(c)
Activity C Name:
Detailed Description:
Outputs:
Cost US$: 14.
Summary Costs by Expenditure Category and Activity (from Detailed Cost worksheet) [paste summary cost table here]
15.
Institutional Arrangements for Management and Administration
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16
Project Processing and Implementation Schedule
[May paste graphic timeline for preparation and implementation activities]
17.
Proposed Environmental Impact Assessment Study
18.
Proposed Social Impact Assessment Study
17.
Project Implementation Arrangements (local and central)
19.
Role of Partnership agencies and entities, national and international
20.
Name of Approving Individuals and Titles
ERD-MOF:
BCCRF Management Committee:
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ATTACHMENT: Cost Table (Please use template below) Guidance Notes to Complete the Template
Item 6(c), Completion Date. The estimated date should not exceed three years from the start date. Extension for a fourth year may be considered based on satisfactory performance and an im plementation plan for activities to be completed on the fourth year. Item 7(a), Project Grant Amount. Please use the detailed cost table template to calculate costs. Costs are to be based on current market rates, with due consideration to economy and efficiency. Item 7(b). Estimated GOB Budget Contribution. Calculate the total GOB counterpart contribution, based on expected annual budgetary contributions to the project. Item 8. CCSAP Objective. Please choose each of the CCSAP Pillar objectives defined in Figure 4.1 that each grant component would support, and list the expected outcomes at the end of the project (see Chapter 9 on the Results Framework). Item 9. Target Geographic Area and Beneficiary Population. Describe in detail the nature of the geographic area affected by Climate Change and the demographics of the population to be served by the grant Project Development Objective. Item 12. Community Consultation Outcome. A consultation workshop/process should take place to provide input into the component design and CCSAP pillars to be financed under the grant. Please confirm the process to ensure community priorities are considered and future ownership and participation by the beneficiary community members. Item 13. Detailed Description of Activities – Costs. The component costs are derived from the Detailed Cost Table, and the inputs (goods, works, services, and operating costs) should b e specifically for the activities described in this section. Item 15. Institutional Arrangements for Project Management and Administration. Describe the organizational arrangements within existing or newly established departments of the implementing agency to carry out the proposed project‘s technical execution and the financial, procurement, and managerial oversight for the administration and monitoring of grant activities and resources. Item 16. Project Processing and Implementation Schedule. Refer to Chapter 4 on the Project Grant Cycle. Please limit the implementation phase to 3 years and insert most of the detailed preparatory work before the project starts with the grant Effectiveness Items 17-18. Proposed Environmental and Social Impact Assessments. Consult designated TTL regarding EA and SA, and reflect understanding reached. Item 19. Role of national and/or international technical partnerships or twinning arrangements. Describe any proposed arrangements.
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A T AN NN NE EX X 22.. TH HE E O OP PE ER RA AT TIIO ON NS S P PO OR RT TA AL L A AN ND D L LIIN NK KS S T TO O T TE EM MP PL LA AT TE ES S ---- P PC CN N,, P PA AD D,, IIS SR R,, A AN ND D IIC CR RD DO OC CU UM ME EN NT TS S BANGLADESH CLIMATE CHANGE RESILIENCE FUND (BCCRF) PROJECT PREPARATION CHECKLIST
Clarity and viability to achieve the objectives, its related activities, and its results indicators Matrix of key results indicators by activity for monitoring during implementation, preferably quantifiable output and outcome indicators. Disciplined costing clearly aligned with description of activities to be executed under the Project Sustainability plan for project activities, including incremental recurrent cost Concerns and comments expressed during the concept r eview stage have been addressed and incorporated in the design. Donors have been consulted and are satisfied with appropriateness of interventions and limited overlap Indicative priority of the chosen interventions Needed inputs defined and costed to ensure policy and institutional strengthening activities achieve intended results, e.g., approved legislation Training activities specify skill-learning objectives, and how new kn owledge will be applied by selected participants Strategic planning for accelerated implementation to deliver the outputs in the 3-year implementation period Partnership and coordination with other affected sectors and players Lessons from own or others‘ experiences incorporated in design and execution strategy Demonstrated institutional capacity for execution, with plans to meet areas with a gap in knowledge and skills Project execution responsibilities with names of leaders and team members for each activity Detailed timeline of the work plan for each activity from tender and acquisition through execution to completion and operation, noting start and end dates Procurement Plan with detailed schedule for first project year Detailed Specifications/Bid documents and TORs/RFP for first year procurement completed Harmonization with the CCSAP Baseline surveys to measure impact are being carried out Can demonstrate visibility of benefits to be rendered to target communities and vulnerable groups Project Environmental and Social Assessment Plan completed Risks identified and preventive measures incorporated in design Demonstrated ownership of the project activities by stakeholders Structure of PIU and key staff in place and appropriate for the scope of work Financial management software in place Financial management staffing, fund flows, and FMR formats have bee n agreed
√ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 70
Disbursement projections have been developed for the short implementation period, and are justified on basis of execution through existing PMU Progress Reporting format and standards defined Baseline data and intermediate and end-project targets have been established for Results Monitoring Indicators, and clear benchmarks have been agreed for a satisfactory project rating
√ √ √
The Operations Portal provides task teams with an integrated web-based workspace to simplify day to day project management. Currently Lending (Loans/Credits/Grants/WB Guarantees) products and Global Partnership Programs (GPP) are available on the Operations Portal. Step-by-step process support is available for IBRD/IDA , GEF, WB Guarantees, and GPP products. A simplified Implementation Status Results (ISR), is also available through the Portal. Additional product lines will be added gradually. Staff should use the Operations Portal to access the Project Concept Note (PCN), Project Appraisal Document (PAD), Integrated Safeguards Data Sheet (ISDS) and Project Information Document (PID). These are Microsoft Word based templates. Below are snapshots of the various web pages in the Bank‘s intranet with the highlighted hyperlink in blue. Opening page for the Operations Portal
Operations - Browse
Guidance Notes and Templates from Concept Note to Completion
OPCS - Guidance
OPCS - Policies
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A AN NN NE EX X 33.. B BA AC CK KG GR RO OU UN ND DO ON NC CO ON NC CE EP PT TN NO OT TE ET TE EM MP PL LA AT TE E RATIONALE, OBJECTIVES, AND KEY FEATURES
The revised Project Concept Note (PCN) is part of an initiative to modernize and simplify investment lending documentation and to place increasing attention on risks and results. The initiative encompasses not only the PCN but also changes in the Project Appraisal Document (PAD) and the Implementation Status Report (ISR). The initiative, called Investment Lending (IL) Reform, transforms the Bank‘s investment lending model so that it responds better to borrowers‘ ne eds and a changing global environment. The new approach – effective as of July 1, 2010 – is built on five pillars and calls for more focus on
results and risks; streamlined processing of low-risk operations along with more attention to implementation support and higher risk investments; new instruments for results-based financing, and provision the tools and enabling environment for teams to implement the reform. The revised PCN has the following functions: • To examine the strategic rationale for Bank involvement • • To seek a go/no -go decision from Country Director and processing track • To obtain early guidance/agreement on issues and approach for project preparation • To confirm the risk category (overall, and for preparation), budget and processing of the
operation The key features of the PCN are: • It is very short— a maximum of six pages • It focuses on project concept, and key risks to the project development objective • It is prepared immediately after identification or before expenditures exce ed $30,000
TABLE OF CONTENTS OF THE PCN
1. Data Sheet 2. Identification of project name and key parameters (1 page) 3. Introduction and Context (1 page) A. Country Context B. Sectoral and Institutional Context C. Relationship to CAS 4. Proposed Project Development Objectives (1/2 page) A. Proposed PDO B. Key Results 5. Project Context (1-1/2 pages) A. Concept 1. Description 2. Key risks and Issues B. Implementing Agency Assessment C. Project Stakeholder Assessment 6. Overall Risk Rating (1/2 page) 7. Proposed Team Composition and Resources (1/2 page)
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Required Annexes: Annex I: Operational Risk Assessment Framework (ORAF) Annex II: Preparation Schedule and Resource Estimate Length: The PCN cannot exceed the equivalent word count of six(6) pages in 12 point, singlespaced text, excluding the Data Sheet and required Annexes. Operational Risk Assessment Framework (ORAF)
The ORAF is an integrated and nested risk framework that pulls together key risk areas that affect the achievement of the PDO of an IL operation. The four different levels of risks are presented in Figure 1 and they include: (i) Stakeholder Level Risks: these are risks that could have an impact on the implementation of the project that teams need to be aware of and mitigate where possible; (ii) Operating Environment Level Risks: these include country and institutional setting risks. Project teams should be aware of these risks but they are not expected to mitigate them at the project level (but the teams should take them into account as they assess the specific project risks); (iii) Implementing Agency Level Risks: where there is scope to influence the risk level through the operation (for example through mitigation measures and project design), and (iv) Project Level Risks: where there is the most scope for mitigating and controlling risk levels through project design and implementation. Figure 1.
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above four levels, there are 10 risk categories to be evaluated plus an optional one that has been added to give teams a chance to flag any additional risks that are of critical nature for the operation and was not adequately covered by the 10 other categories. Assessment of risk levels and categories To achieve the goal of a comprehensive risk assessment, the 10 risk categories presented in the ORAF all need to be rated (with the eleventh, ―other risks‖ optional) –
Stakeholder Risks (1.1). Project teams rate risks posed by stakeholders who might question or even oppose the project in a manner that could affect the achievement of its development objectives. Operating Environment Level Risks: Country Risk (2.1) and Institutional Risk (2.2). CMUs and country teams measure country risks that affect most operations (these ratings are not specific to the proposed project). SMUs take the lead in rating institutional risks at the organizational level that affect operations in the sector or sectors concerned. Implementing Agency Level Risks: Capacity Risk (3.1), Governance Risk (3.2) and Fraud and Corruption Risk (3.3). Project teams measure capacity-related risks, governance risks and fraud and corruption risks. Teams evaluate these risks at the level of the client country entity (implementing agency) that will have the overall responsibility to produce the outputs expected to lead to the desired project results. Project Level Risks: Design Risk (4.1), Safeguards Risk (4.2), Program and Donor Risk (4.3) and Delivery Quality Risk (4.4). Task teams will assess all aspects of project risks including design risks, safeguards risks, program and donor risks and delivery quality risks. Project teams also have the option to identify one or two additional risks that may be specific to the operation if they are not captured in the existing list (4.5).
Summary risk assessment at the implementing agency level. Since the three risk categories (capacity, governance, and fraud and corruption) under the implementing agency risk level will not be disclosed (see section below on disclosure), teams are asked to provide an overall assessment of the implementing agency level risks.. This overall assessment is disclosed at Negotiations stage when the Negotiations package is submitted to the Borrower/client and at the Board review stage. This option for teams to have one added risk dimension is flexible. If teams feel that there is a very important risk category that has not been captured by the ten above, they can use this optional category. For instance, teams working with a sub-national entity or series of sub-national entities that are different from the main implementing agency may want to use the ―other‖ risk dimension to present risks at the sub national level. The same may be true of Community-Driven-Development (CDD) operations. Project teams could also use this section to provide information on special risks associated with fragile and post-conflict states. However, there is no requirement to identify additional risks. Teams may leave this section blank. “Other risk” category under project risk level.
Use of the ORAF throughout implementation. One key feature of the risk framework is that the ORAF is applicable throughout the lifetime of the project. At the preparation stage, task teams put together implementation support results and risk plans, identifying the risk mitigation measures that will be implemented as part of or in parallel to the project. During implementation, they apply the ORAF to check for changes in risk levels, and they review and update the
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implementation plans, including a review of the performance of risk mitigation measures, and adjust them as needed. OPCS Guidance: http://intranet.worldbank.org/WBSITE/INTRANET/UNITS/INTOPCS/0,,highlightMenuPK:647061 98~hlgIndex:64714903~menuPK:51455248~pagePK:4712696~piPK:4713850~theSitePK:3808 32,00.html http://intranet.worldbank.org/WBSITE/INTRANET/OPERATIONS/INTOPEX/0,,contentMDK:202 97944~menuPK:587634~pagePK:64168324~piPK:64168339~theSitePK:587626,00.html
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A AN NN NE EX X 44.. P PR RO OJJE EC CT TA AP PP PR RA AIIS SA AL LD DO OC CU UM ME EN NT T ((P PA AD D)) ---- G GU UIID DE EL LIIN NE ES S PAD GUIDELINES AND PAD TABLE OF CONTENTS The revised Project Appraisal Document (PAD) under the risk b ased approach underlying the IL Reform has been considerably simplified when compared to the earlier version of the PAD, both for projects being processed under Track 1 (i.e., lower risk projects, approved by the Country Director for ―fast track‖ processing at the PCN Review Meeting) and under Track 2 (i.e., projects that the Country Director determines at the PCN Meeting to require normal processing). While the main text template remains largely the same as before, some sections have been rearranged and a few sections have been dropped in order to promote the presentation of a more readable and coherent ―story line‖ in the PAD. The number of annexes has been reduced from 15 to 6 in the case of Track 1 projects, with up to three optional annexes permitted for Track 2 projects. The key features of the revised PAD are: Length and style of the PAD. The main text of the PAD that is sent to the Borrower or Grant Recipient as part of the invitation to negotiate package should not exceed the word count equivalent of 15 pages in 12 point, single spaced type face. Regional managers must assure the quality of the PAD as a concise, well written document that addresses the specific project requirements within the overall Guidelines, before the document is sent to the Borrower as part of the Invitation to Negotiate package. Documents in Project Files. Changes to the PAD template, in particular the reduction in the number of annexes, will result in the more detailed appraisal of some aspects of the project (e.g., economic and financial analysis, FM Assessment, Procurement Capacity Assessment) being excluded from the PAD. (The Annex on Economic and Financial Analysis is not required in the PADs of Track 1 projects; such an annex is optional for Track 2 projects). However, task teams will still be required to appraise projects from an economic and financial perspective as per the relevant Operational Policy/Bank Procedures and applicable guidelines. The detailed economic and financial appraisal of the project should be part of the pre-appraisal and appraisal documentation. Task teams should continue to carry out comprehensive assessments of economic and financial matters, consistent with Bank requirements, and should retain them (as well as FM Assessments and Procurement Capacity Assessments) in Project Files. GUIDELINES ON PROCESSING THE PAD
1. Draft PAD: After the early Project Concept Note is approved, it normally will take some time for the project design to be developed. As soon as the recipient and the Bank have agreed on a basic project design, the Team Leader should start preparing a draft PAD. 2. Quality enhancement review (optional):: After the project concept has matured into a project design, but well before project appraisal, at the discretion of the Sector Manager, he/she oversees the QER in line with the decision reached at the PCN Review Meeting on the scope and depth of QER, involvement of relevant Bank units and review process. The QER would:
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• Verify that the design is consistent with the approved project concept and ensure that any
deviations are justified. • Provide for quality assurance on the technical aspects of the project, with particular attention on how and at what cost the inputs financed will translate into results and outcomes. The results framework should be a core element of this technical review. • Establish the fiduciary (financial management and pr ocurement) requirements that need to
be met by appraisal and effectiveness, including any institutional capacity assessments that may be required. • Update the estimate of Bank resources needed to complete preparation and approval. If
the estimate is significantly different from that agreed at the PCN review, the Country Director should be consulted. • Prepare and approve the PAD -stage Integrated Safeguards Data Sheet (ISDS) specifying the project‘s environmental and safeguard classifications and the requ irements that have to
be met by appraisal. • Reach agreement on procedures and timing for consultations and disclosure of project -
related documents. 4. Documentation of QER: The QER should be based on the draft Cover Sheet, Project Description and Implementation sections of the PAD. It is recommended that reviewers pose their comments and questions in writing beforehand to promote a constructive focus. Some managers may prefer a more informal approach. Whatever the case, the Team Leader should draft minutes of the QER for circulation to all participants. 5. QER as definitive closure point: The QER should be the definitive point of closure on major design, fiduciary, and safeguard issues. Decisions made and guidance provided in the QER should be authoritative and should not be revisited unless significant relevant changes are subsequently made in the project design, important new information comes to light, or country conditions or strategy have changed. If agreement is not reached in the QER on how to address an issue, it should be flagged in the minutes, and the Team Leader is responsible for bringing it to the attention of the appropriate decision makers. It is the Sector Director or Manager‘s responsibility to ensure that the participants in the QER focus on relevant, constructive comments. 6. Consultations with Lawyer: The Country Lawyer should be included in the QER. Before and after the QER, it is advisable for the project team to seek the guidance of the Country Lawyer in drafting the Project Description and the Financial Management and Procurement Annexes and in establishing the legal covenants. 7. Decision meeting: Existing Regional procedures are to be used for the Decision Meeting, which is the final review before appraisal 9. Project Information Document (PID) and Integrated Safeguards Data Sheet (ISDS): The document system generates the draft PID from the PAD. The PID and the ISDS should be sent to the Info Shop, after the TTL reviews the draft, amends them as required, and has them cleared with the Sector Director/Manager and the Regional Safeguards Coordinator (if required), as per regional procedures.
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10. Project Implementation Plan not a presentational requirement: The Project Implementation Plan (PIP) is no longer required to be a self-standing document for all projects. Bank teams should still encourage recipients to prepare PIPs and should facilitate their preparation wherever necessary. However, the PIP is not a document for the Bank, and thus is neither a PAD presentational requirement nor a condition for approval of a loan/credit/grant agreement TABLE OF CONTENTS OF THE PROJECT APPRAISAL DOCUMENT (PAD)
OPCS Guidance: http://intranet.worldbank.org/WBSITE/INTRANET/UNITS/INTOPCS/0,,highlightMenuPK:647061 98~hlgIndex:64714903~menuPK:51455248~pagePK:4712696~piPK:4713850~theSitePK:3 80832,00.html Data Sheet I. Strategic Context A. Country Context B. Sectoral and Institutional Context C. Higher Level Objectives to which the Project Contributes II. Project Development Objectives A. PDO 1. Project Beneficiaries 2.PDO Level Results Indicators (no more than 5) III. Project Description A. Project components B. Project Financing 1. Lending Instrument 2. Tables on Project Costs and Financing Plan C. Lessons Learned and Reflected in the Project Design (Optional section for Track II operations only) IV. Implementation A. Institutional and Implementation Arrangements B. Results Monitoring and Evaluation C. Sustainability V. Key Risks and Mitigation Measures VI. Appraisal Summary A. Economic and financial analysis B. Technical C. Financial Management D. Procurement E. Social (including safeguards) F. Environment (including safeguards) G. Other safeguards policies triggered (if required) TECHNICAL ANNEXES Annex 1: Results Framework and Monitoring Annex 2: Detailed Project Description Annex 3: Implementation Arrangements Annex 4: Operational Risk Assessment Framework Annex 5: Implementation Support Plan Annex 6: Team Composition Optional Annexes for Track II: Economic and Financial Analysis; Other Optional Annexes Data Sheet
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Implementation Support
The IL Reform highlights supervision and implementation support (IS) as an important building block of the effort. Although throughout the Bank there is a growing awareness of the importance of focusing on development outcomes of projects, the majority of staff and budget resources, managerial oversight, and processes to assure quality are targeted to project preparation and appraisal. While sound analysis and good design will always be essential to successful projects, there is increasing recognition that to ensure more emphasis on supervision and IS, management and teams must begin thinking about supervision and IS as early as possible during preparation. Furthermore, supervision and IS efforts need to be diverse and robust enough to respond to the increasingly varied demands from clients. In comparison with project preparation, for which there are clear templates and processes, teams have much less guidance in IS. Two main tools will provide such a framework: (a) Implementation Support Plan (ISP). The proposed mechanism by which Management would assess the IS needs and modalities during preparation is the ISP. It will help identify the type of support needed by the borrower/implementing agency, align IS with the results and risks associated with the operation, better integrate t ask team and Management thinking on implementation demands, and, in the process, obtain Management commitment to and support for implementation requirements. It is a standard annex of the PAD, with annual updates. The ISP emphasizes the timely implementation of the risk mitigation measures identified in the ORAF and the need to provide the necessary technical advice to the Borrower/Grant Recipient and the implementing agencies to facilitate achievement of the PDO, as measured by the results/outcomes identified in the result framework. The ISP also identifies the minimum requirements to meet the Bank‘s fiduciary obligations. (b) Implementation Status and Results Report (ISR). Another important tool for IS management is the ISR, which has been revamped to better report on risks and results. As the ISP will be an annex to the PAD, the relevant information from the ISP will be transferred directly to the initial ISR. In response to the IDA controls findings, the ISR risk section will report on risks, including fraud and corruption. OPCS Guidance: http://intranet.worldbank.org/WBSITE/INTRANET/OPERATIONS/INTOPEX/0,,contentMDK:224 40582~menuPK:587639~pagePK:64168332~piPK:64168299~theSitePK:587626,00.html
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A AN NN NE EX X 55.. A AN NN NU UA AL LP PR RO OJJE EC CT TF FIIN NA AN NC CIIA AL LA AU UD DIIT TS SA AM MP PL LE E T TE ER RM MS SO OF FR RE EF FE ER RE EN NC CE E Introduction
1. [This section should provide appropriate background information of the project that is subject to audit, including a brief description of the project; its implementation arrangements, including the name of the implementing agency/recipient; the sources of financing and the requirement for period audits .] Objective
2. The objective of the audit of the project financial statements is to enable the auditor to express a professional opinion on the project‘s financia l position as at the end of [audit reference date ] and of the income and expenditure for the accounting period ending on that date. The project‘s books of account provide the basis for preparation of the financial
statements and are established to reflect the financial transactions in respect of the project. Responsibility for preparation of financial statements
3. The responsibility for the preparation of financial statements including adequate disclosure is that of the project‘s management. This includes the maintenance of adequate accounting records and internal controls, the selection and application of accounting policies, and the safeguarding of the assets of the project. As part of the audit process, the auditor will request from management written confirmation concerning representations made to us in connection with the audit. Scope
4. The audit will be conducted in accordance with International Standards on Auditing [or refer to relevant national standards or practices ]. Those Standards require that the auditor plans and performs the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. 5. In complying with International Standards on Auditing, the auditor is expected to pay particular attention to the following matters: (a) In planning and performing the audit to reduce audit risk to an acceptably low level, the auditor should consider the risks of material misstatements in the financial statements due to fraud are required by International Standard on Auditing 240: The Auditor‘s Responsibility to Consider Fraud in an Audit of Financial Statements. (b) When designing and performing audit procedures and in evaluating and reporting the results thereof, the auditor should recognize that noncompliance by the entity with laws and regulations may materially affect the financial statements as required by International Standard on Auditing 250: Consideration of Laws and Regulations in an Audit of Financial Statements.
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(c) The auditor should communicate audit matters of governance interest arising from the audit of financial statements with those charged with governance of an entity as required by International Standard on Auditing 260: Communication of Audit Matters with those Charged with Governance. (d) In order to reduce audit risk to an acceptably low level, the auditor should determine overall responses to assessed risks at the financial statement level, and should design and perform further audit procedures to respond to assessed risks at the assertion level as required by International Standard on Auditing 330: The Auditor‘s Procedures in Response to Assessed Risks.
6. In evidencing compliance with agreed project financing arrangements the auditor is expected to carry out tests to confirm that: (a) All external funds have been used in accordance with the conditions of the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which the financing was provided. Relevant financing agreements include [credit agreement s]; (b) Counterpart funds have been provided and used in accordance with the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which they were provided; (c) Goods, works and services financed have been procured in accordance with relevant financing agreements, including specific provisions of the World Bank Procurement Policies and Procedures16; (d) All necessary supporting documents, records, and accounts have been maintained in respect of all project activities, including expenditures reported using Statements of Expenditure (SOE) or Interim Unaudited Financial Statements (IFS) methods of reporting. The auditor is expected to verify that respective reports issued during the period were in agreement with the underlying books of account. Project Financial Statements
7. The auditor should verify that the financial statements have been prepared in accordance with International Public Sector Accounting Standards [or refer to relevant national standards or practices ]. The financial statements should include: (a) A statement of financial position; (b) (c) (d) (e)
A statement of financial performance; A statement of changes in net assets/equity; A cash flow statement; When the entity makes publicly available its approved budget, a comparison of budget and actual amounts either as a separate additional financial statement or as a budget column in the financial statements; and (f) Notes, comprising a summary of significant accounting policies and other explanatory notes.
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Depending on the complexity of procurement activities, the auditor may consider involving technical experts during the audit engagement. In cases where such experts are involved, the auditor is expected to comply with provisions of International Standard on Auditing 620: Using the Work of a n Expert . Consideration to use of the work of experts should be brought to the early attention of the recipient and the World Bank for mutual agreement and appropriate guidance.
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[The explanatory notes should include reconciliation between the amounts shown as "received by the project from the World Bank" and that disbursed by the Bank and a summary of movements on the project’s De signated Account.] Review of Statements of Expenditure and Interim Unaudited Financial Statements
8. The auditor is required to audit all SOE/IFS submitted to the World Bank in support of requests for periodic replenishment of the project designated account(s). Expenditures should be examined for eligibility based on criteria defined in the terms of the financing agreement and detailed in the Project Appraisal Document. Where ineligible expenditures are identified as having been included in withdrawal applications and reimbursed, they should be reported. Review of Designated Accounts
9. During the audit of the project financial statements, the auditor is required to review the activities of the project‘s designated account(s). Activities to be examined will i nclude deposits received, payments made, interest earned and reconciliation of period-end balances. Audit Reports
10. The auditor will issue an audit opinion on the financial statements. 11. In addition to the audit opinion, the auditor will also report, either in the audit report or in the report to management: (a) provide comments and observations on the accounting records, systems, and controls that were examined during the course of the audit; (b) identify specific deficiencies and areas of weakness in systems and controls and make recommendation for their improvement; (c) report on instances of non-compliance with the terms of the financial agreement(s); (d) Quantify and report expenditures that are considered to be ineligible and either paid out of the designated account(s) or which have been claimed from the World Bank; (e) communicate matters that have come to attention during the audit which might have a significant impact on the implementation of the project; and (f) bring to the recipient's attention any other matters that the auditors considers pertinent. 12. The auditor‘s opinion on the financial statements and management letter should be received by the Bank no later than [three to six ] months after the end of [the audit reference date ]. General
13. The auditor is entitled to unlimited access to all information and explanations considered necessary to facilitate the audit including legal documents, project preparation and supervision reports, reports of reviews and investigations, correspondences, and credit account information. The auditor may also seek written confirmation of amounts disbursed and outstanding in the Bank records. 14. The auditor is encouraged to meet and discuss audit related matters including input to the audit plan with the World Bank project task team.
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15. It is highly desirable that the auditor reviews the Financial Management Manual For World Bank – Financed Investment Operations , which summarizes the Bank's financial reporting and auditing requirements and the Reference Material that elaborates on topics discussed in the Manual. The auditor should also be familiar with the Bank's Disbursement Letter for the Grant and formats for Financial Monitoring Reports.
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