The program will conduct a Covenant As per dates Program Audit Financial Audit annually on set in DLIs There could be a delays in Program the basis agreed upon TORs and Financial Audit report DLI/PAP Value for money audits will be conducted. The Program Value for money audit has not been includes measures to follow adequately conducted up on audit backlogs and follow up of past audit issues. Significant audit back logs exist for the new cities and qualification issues of the all cities are not well followed up Procurement MC/ DLI 1 Program Program minimum access Compliance with national and regional condition (MC) will check on directives the availability and There is laxity or lack of knowledge of functionality of the minimum the bylaw and therefore incompliance systems, including legal with national and regional governments documentation; APA and Program directives with regards to procurement The PAP will include DLI 1 planning, use of direct contracting familiarization training and without appropriate safeguards, failure to the mobile support team will use standard bidding Documents and support the ULGs to address subsequently contract documents and most of the issues related inconsistent use of committee systems Annually and with awareness/capacity DLI 1 and for approval of contract award. Use of continuous issues; 2 direct contracting is common and The Borrower will conduct national competitive bidding used above Annual Performance Audit thresholds as required by Directives (APA) for the first two years and Independent Procurement audit after the second year and deliver procurement audit reports with management corrective measures addressing the findings of the audit; MC/ DLI 2 Program Procurement capacity Minimum access conditions and 9 will check the availability of There are capacity limitations in terms of the minimum procurement skilled staff to handle procurement and staffing (two) in each city; contract administration. As this is a PfoR The MUDHCo will maintain DLI 4 operation, project units which facilitated its project team and the procurement processes under ULGDP I mobile support team similar may not be available thus further to ULGDP I; deteriorating the capacity of cities to DLI 8 The program will provide implement the program. The cities are intensive procurement also experiencing high staff turnover. In contracts management most cities, most procurement staffs have training to the staffs of the been in position for less than 2 years.
Program Audit There could be a delays in Program Financial Audit report Value for money audit has not been adequately conducted Significant audit back logs exist for the new cities and qualification issues of the all cities are not well followed up The program will conduct a Financial Audit annually on the basis agreed upon TORs Value for money audits will be conducted. The Program includes measures to follow up on audit backlogs and follow up of past audit issues. Covenant DLI/PAP As per dates set in DLIs and Procurement Compliance with national and regional directives There is laxity or lack of knowledge of the bylaw and therefore incompliance with national and regional governments directives with regards to procurement planning, use of direct contracting without appropriate safeguards, failure to use standard bidding Documents and subsequently contract documents and inconsistent use of committee systems for approval of contract award. Use of direct contracting is common and national competitive bidding used above thresholds as required by Directives Program minimum access condition (MC) will check on the availability and functionality of the minimum systems, including legal documentation; The PAP will include familiarization training and the mobile support team will support the ULGs to address most of the issues related with awareness/capacity issues; The Borrower will conduct Annual Performance Audit (APA) for the first two years and Independent Procurement audit after the second year and deliver procurement audit reports with management corrective measures addressing the findings of the audit; MC/ DLI 1 APA and DLI 1 DLI 1 and 2 Program Program Annually and continuous Procurement capacity There are capacity limitations in terms of skilled staff to handle procurement and contract administration. As this is a PfoR operation, project units which facilitated procurement processes under ULGDP I may not be available thus further deteriorating the capacity of cities to implement the program. The cities are also experiencing high staff turnover. In most cities, most procurement staffs have been in position for less than 2 years. Minimum access conditions will check the availability of the minimum procurement staffing (two) in each city; The MUDHCo will maintain its project team and the mobile support team similar to ULGDP I; The program will provide intensive procurement contracts management training to the staffs of the MC/ DLI 2 and 9 DLI 4 DLI 8 Program
893280WP0P13350nal00March018002014.docx