SEMESTER REPORT SU-L1011 - Decentralization and Local Government Strengthening Program - II JANUARY-JUNE 2014 Project Implementation Unit DLGP-Project Team within Ministry of Regional Development
DLGP-Project Implementation Unit
1
Executive Summary Basic Data Country
SURINAME
Project name
DECENTRALIZATION AND LOCAL GOVERNMENT STRENGTHENING PROGRAM II (DLGP II)
Loan number
2087/OC-SU (SU-L1011)
Environmental and Social Classification
Category C Key Dates Post Board Approval
Date of Board approval (include project 10-Dec-2008 report PR number) PR-3357 Date of contract signature/effectiveness
20-Mar-2009
Eligibility date
09-Jun-2009
Date of first disbursement
17-Jun-2009
Country
SURINAME DLGP-Project Implementation Unit
2
Executive Summary Basic Data Borrower Executing agency
REPUBLIC OF SURINAME Ministry of Regional Development Minister Mr. Stanley Betterson Dep -Permanent Secretary: Ms. U. Vrede
Co-Ministry
Ministry of Finance Minister A. Rusland Permanent Secretary: Ms Drs L. Halfhide
Approved loan
$13,500,000
Source (OC, FSO) Disbursement expiration date
OC 20-September-2014
Committed in % Disbursed in %
99.00%
(approved counterpart fund $ 1,500,000)
DLGP-Project Implementation Unit
74.90%
3
PMR: Economic Performance 2014, 08-28 Direct Costs 85.6% Disbursed: 58% Actual Cost: 68%
DLGP-Project Implementation Unit
4
Executive Summary Basic Data IDB- Project Team Rafael de la Cruz (ICF/FMM), Project Team Leader, Gilberto Chona (IFD/FMM), Carol Lieveld (CCB/CSU); Rinia Terborg (CCB/CSU);
DLGP- Project Team Project Implementation Unit (PIU) 1. Basharat Ahmadali (DLGP-Managing Director) 2. Mahender Pershad (Task Manager Adm., Finance and Planning) 3. Martin Blenman (Task Manager civil Works & Capital Investment) 4. Iris Gilliad (Task manager Citizen Participation) 5. Riaz Ahmadali (Task Manager ICT/WAN) 6. Xavira Souprayen (Ass. Financial Officer) 7. Marlon Wamenie (Ass. Procurement Officer) 7. Clarenca Sajat (Office Manager)DLGP-Project Implementation Unit
5
Introduction Regular based Semester Report • • • • • • • • • • • • • •
It is stipulated in Article 7.03 of the Loan Document dated 2009-03-20 LEG/SGO/SU1741609 that during the Program execution, the PIU will present semi-annual progress reports to the Bank. Referring to 5.1 of ORG-II the PIU presents the 2ND SEMESTER / Semi-Annual Report of 2013 covering the period January-June 2014 The previous semester reports a.o. signing of the Loan Contract on March 20, 2009 covered the periods: 1. March 20, 2009 – September 20, 2009 2. September 20, 2009 – December 31, 2009 3. January – June 2010 4. July – December 2010 5. January – June 2011 6. July – December 2011 7. January-June 2012 8. July-December 2012 9. January-June 2013 10. July-December 2013 10. January-June 2014 DLGP-Project Implementation Unit
6
Project Objective and description • To continue supporting Suriname’s local government’s decentralization efforts. • The project will contribute to the attainment of: > (i) A core legal frame work • And will assist new pilot districts of Paramaribo, Sipaliwini, Saramacca, Coronie, and Brokopondo obtain adequate (ii) institutional capacity for fiscal self-management and (iii) capacity for managing capital investment. • The Program will also assist certified districts of Wanica, Para, Nickerie, Commewijne, and Marowijne in the preparation and execution of civil works projects > (iv) implementation of community-based basic infrastructure investment projects and local services.
DLGP-Project Implementation Unit
7
Introduction • • • • • • • • • • • • • • • • • • • • • • • • • •
The first semester of 2014 was a period of making the best strategic decisions in close cooperation with Mr. Gilberto Chona and the Field Office focused on the extension and closing of The Program, the monitoring of the remaining time frame, remaining budget and remaining projects. It’s good to mention the well done coaching from Mr. Gilberto Chona and his team through increasing of the video conferences. These were held frequently on February 20, May 30, 2014, June 2 and 30. The PIU Reviewed the PMR (Results and Products Indicators) The Financial and Accounting (Status of disbursements, commitments, and outstanding loan balance). The Action Plan (AOP 2014) and The Procurement Plan and as usual The Miscellaneous (administrative) items Special or General extension of The program Video conference hold on February 20: March 20th 2014- sept 20th 2014 should be the period for the General Extension. US$ 6.5 still to realize. Additional months were needed o execute the Program. At that moment 60.5% was the outstanding balance US$ 4-6 million; the simple message was clear, there is a short period to execute, time and balance, and coordination should be very precisely. In comp 4. Capital investment US$ 4.319.000 we have seen the main challenge. The further decisions were: Hiring of two international consultant, respective for the End of Program Evaluation a (EoP-Evaluation) and the producing of the Program Completion Report (PCR); identify lessons learned, future agenda for achieved results, not later than May and June Closing workshop in sept, no later than October; this is the final evaluation within the government Some other data and suggestions were noted: Final date: audit report. 12-12-14. Extend contract Financial assistance, semi Annual report, PIU-cash flow planning., Disbursement 66 approved. Disbursement planning, MRD. Cash Flow Planning: of 6 months , extension Contracts PIU Special attention to Capital Works, still to execute US$ 3.9 million Special procedures were agreed as: separate least of projects- ex-ante and ex-post, only issue is: doc uments in English or not. In the meantime all documents were translated already, except one. Shorten the period of no-objection to one week. PIU showed on possible delays caused by rains, etc. contractor withdraw Complicated is the maintenance period. Note for the minister. IDB can not grant ex-ante special extension. Make an estimate of the number of contracts going beyond the expected date. How much is the value of these contracts to manage them 2 options were considered (i) Closing of the projects, (ii) Gov can request tor special extension to pay As far as it regards:
DLGP-Project Implementation Unit
8
• •
Procurement, Take into account Low risk category, and Big risks category. The bank is to consider give very special trashold to exceed to Usd 300.000
• •
Final Evaluation and Calendar Final date disbursement was fixed on September 20th. PIU carry Final Evaluation Program. Identify important issues affecting the Program and Lessons Learned. Closing mission. End of the program. Closing workshop begin September or before. The Issue is not beyond the completion date. Gos present the result of the evaluation. The bank present PCR. Not later than October 20th. The PIU was able to manage all as was agreed to achieve the goals: (i) The preparation of the documents showing the need for the general extension was done well (ii) Minister of Finance needed a presentation from the PIU arranged by Minister of MRD, and done to his satisfaction (iii) The request of extension to the Bank was submitted in timely matter, and the approval by the Bank was given also on time
• • • • • • •
Video conference hold on June 2 PIU and Mr. Gilberto Chona been trough the submitted management tools to follow the progress: 1. Revised/updated Procurement Plan US$ 986,880.79; 2. Spread sheet overviewing contracts going beyond the date of Sep 20 (lightly) a) 2.4.2.6.7+8 Construction, rehab and extension of Multi purpose center- Coronie: already tendered, taking into account a second no-objection followed by signing contract/start execution end of June, followed by 5 month execution period. Expected completion date = end of November. b) 2.4.2.6.5+6 Multipurpose Building- Brokopondo: in execution; expected completion date is Oct 14: special extension needed of the drop-deadline Sept 20 c) 2.4.2.6.3 Sipaliwini Communication Bridges : in execution; expected completion date Oct 7: special extension needed of the drop-deadline Sept 20 3. Overview submitting date and date of receiving no-objection to trace delay causing completion beyond the date. 4. Breakdown IDB Funds, including re-allocation; inclusive US$ 150.000 unused, because of no progress on the pending fiscal laws according to the Loan Agreement. 5. Spread sheet overviewing signed contracts US$ 2,452,255.44 (of US$ 3,889,915.02) 6. Spread sheet overviewing status of counterpart (GoS) Funds, showing a balance of SRD 1,005,529.01, blocked for 10% payments on capital works after the 6 months maintenance period. Attention: Within MRD approved budget 2014 there is only available a budget of SRD 253.000
•
Hot issue is the question how to survive the unworkable payment rules, regulations, processed by the government. Contractors are missing own cash flow to pre -finance the project. Let's look at it carefully. DLGP-Project Implementation Unit
9
•
Video Conference June 30.
•
No-objection from IDB for Coronie Multifunctional building needed. IDB said:” processing of the no-objection is pending. This will occur today or Wednesday”. Chona gives technical no-objection. • New proposal garbage collection Para and Wanica Replacement of Plastic Recycling Plan was done and accepted • Two international consultants need to be contracted; this regards IC final evaluation and IC final PMR report including closing workshop. End date of these 2 consultancy is September 20th. • Closing workshop in October, we need the no-objection that it will take place in October because it passes September 20th • Bas,Martin en Riaz salaris payment untill December 12th. So, the program financially need to be closed by December 12th. So the closing workshop and the salaries of the 3 persons will need to be paid till December 12th. Chona said: we need to use the contingency for these activities. Rinia: “Looking at breakdown IDB.A budget transfer need to be done.” Xavira already took the contingency into consideration for the mentioned items. • Chona is requesting a justification report for the special extension. Bas replied: You will receive a justification for the payments after September 20th till December 12th. Including operational costs, cost of the workshop and retention payments of contractors. • Bas mentioned the projects beyond September 20th. These are: 1. Brokopondo, 2. Sipaliwini and 3. Lelydorp, 4 Marowijne, 5. MFZ Coronie .Who need to sign the special extension request?. Minister of Finance was the response of Chona. Multifunctional building Coronie can't be submitted with date beyond September 20th. • We need to prepare a report of transferring goods and other PIU infrastructure to MRD. • Jennifer Wachter (MRD’s Deputy PS): Landfill and Multifunctional building: why is the Bank late with the no-objections. Bank explained that they are within the margin of the agreed period. • IDB will support with the TOR of the international consultants; inclusion of this discussion today. • Auditor report before end of December. Payment of auditor can be paid after December because of subsequence events. • How long will it take for Ministry of Finance to process the final payments of contractors, it should be before December 2014 otherwise it will have to be paid by MRD. Is it possible to do the final payment through direct payments. Rinia: in this case it is not a problem. A final date has to be set. It is agreed to be the end of November 2014. • Some proposed reasons for the special extension justification: it is probably possible that some projects (specific projects) will go beyond September 20th because of rainy season, accessibility. Request for special extension need to be send before July 11th • The final financial statement need to be submitted by December 12th. • Template of special extension. Carol will look for an example. • Photo book printing to be paid by IDB need to be justified . Product is generic, very simple product. The discussions and the decisions during the VC were very clear and helpful to manage al those activities related to the closing processes of such complex program as DLGP. The PIU could manage all sufficiently and is still processing some issues and activities in close cooperation with the Bank in a very supportive way.
DLGP-Project Implementation Unit
10
Outcome OUTCOME Outcome
Local Gvt Capacity enhanced
Supposition
Gos continues supporting the decentralization policy of framework
Indicator
Measure
Baseline
Year
20102011
Legislation dec passed
Update
1
2008
P4 A2
Districts certified self fin mgt
Districts
P5
2009
P2/A2
2013
End P3 A0
P3/A3
P10/A10
Districts certified mgt CapFiscal Inv relations Districts between 5 2009 gvt 0and districts 5 improved 10 Outcome central process Suppositions Inflation and exchange rates stay within acceptable limits
Contractors and suppliers will not run into problems Indicator
Measure
Baseline
Year
2009/2012
2013/To date
June/201 4
Project executed by certified districts
US$
1.000.000
2008
3,704,073
1,925,878
940,604
DLGP-Project Implementation Unit
11
Outcome • Verification means and outcome indicators observations Outcome
Local Gvt Capacity enhanced
Indicator
Measure
Means of verification
Comments
Legislation dec passed
Update
Cab Min and Parl. approved
MRD is processing
Districts certified self fin mgt
Districts
MRD’s Resolution Level 1
Done
Districts certified mgt Cap Inv
Districts
MRD’s Resolution Level 2
Done (Febr 2014)
Outcome
Fiscal relations between central gvt and districts improved
Indicator
Measure
Means of verification
Comments
Project executed by certified districts
US$
MOF issues Resolution assigning transfer to certifying districts
Done
DLGP-Project Implementation Unit
12
Outputs Comp: Legal Frame Work
Measure
Output Redesign
2009 2010
2011 2012 2013 2014 End
Base Frame W.
?
Pack
Milestones Trad. Auth Law drafted
Bills
P1/A1
P1 A0
Agreement Glis-Districts
Ordinance Agreements
P1 A10
P1 A0
Art 4 Laws updated
Bills
A2
P1
P1
A0
Training provided (Once the bills approved)
Workshops
P10
P10 A0
State Decree incorp Districts State Decr 5
P2/A2
P3/A2
P10 A10
MRD/MOF Res L-1 Cert
Res
P2/A2
P3/A3
P10 A10
Handbook/Bundle of legislation for Loc Gvt
P1 Ordinance 0 A1 Bundle DLGP-Project Implementation Unit
5
P1 A0
13
Outputs Comp: Fin, Planning, Adm
Measure
Output Adm & Pl Syst in place
2009
2010
2011
2012
A1
2013
2014
End
Base System
Pack
BFM System installed
Systems
5
P2/A2
P3/A3
Local Tax installed
Systems
5
P2
A2
P7/A7
Local Tax Methodology dev
Method
5
P6/A2
A4
P11/A11
Internal Auditing Unit
Unit
P1/A0
P1/A0
Distr Adm position created
DA’s
P5
P6/A6
WAN installed in Districts
Systems
5
P5/A5
P1/A2( PZW+A poera)
P11/A12
WAN installed in MRD
Systems
P1
P1
P1/A1
P1/A1
WAN installed in MOF Missing pro-active actions MOF District Offices rehab
Systems
P1
P1
P1
Districts
5
P5/A2
P3/A3
Distr. Strategic Development Plan
Districts
5
P5
Training provided
DLGP-ProjectP7/A7 Implementation workshops P3/A3Unit P10/A10
Milestones
P1/A0
P10/A11
P1/A0
P1
P4/A4
P1
P1
P1 P11/A15
P1
P1 P5/A5
P5/A 0 P5/A5
P5/A5
P5/A5 14P25 /A25
Preparation of
District Strategic Development Plan Paramaribo N-E
DLGP-Project Implementation Unit
15
Review of the Budget and Financial Management (BFM) Handbook
DLGP-Project Implementation Unit
16
Outputs Comp.: Citizen Participation
Measure
Output
2009 2010 2011
2012
2013
2014
End
Base
Citizen Particip. Appr. in place Milestones CPP in place (5)
CPP
P5/A0
P5/A0
P5/A5
P5/A5
CPC in place (5)
CPC
P5/A5
Neighborhood Comm. in place
NC
P5/A9
P5/A5
P13/A13
P11/A7
P6/A2
P40 A38
CIC’s in place Citizens Information Centers (5)
CIC Units
P5/A5
P3/A3
P1/A1
P3/A3
P3/A5
P15/A15
Training provided
workshops
Promotion & Outrech Pl in place
ongoing
Consensus Building m (stopped by MRD 2011)
17 ministry
P5/A5
A
A50 P10 A10
1
P10 A0
P17 A1
DLGP-Project Implementation Unit
P10 A10
P10 A10 P17 A1
Stakeholders involvement Start of Brokopondo Multifunctional building, youth involved in ceremonies. Neighborhood committee meeting on Road project Saramacca
DLGP-Project Implementation Unit
18
Stakeholders Photos: One of the several meetings held with the market vendors deciding with hand raising on location for the market Renovation Market Lelydorp, drawing of lots for the Temporary Market Stands and Situation of temporary market closely monitoring by CW and CP holders involvement
DLGP-Project Implementation Unit
19
Outputs Comp.: Cap Investment/Cap build
Measure
Output
2009 2010
2011 2012
2013
2014
End
Base
Roads, drainage, garbage collection, market facilities works Milestones 1. Capacity Building new pilots 2. Management tools Five new pilot Districts
Districts
5
3. Trial projects Five new pilot Districts
Districts
5
5
P3 A3
P2 A2 P2
P5 A5 P3
P5
4. Capital Investment Projects Five certified districts: (i) Roads (11)
Projects
(ii) Drainage Living Areas (10)
Projects
(iii) Garbage Collection (5) (iv) Markets (4)
P5/A5
P1/A1
P11 A11
0
P10 A10
P10 A10
Districts
0
P1/A1
Units
0
P1/A1 P3/A3
DLGP-Project Implementation Unit
P5/A5
P4/A4
P5
P4 A3 20
Road paving projects in Wanica
DLGP-Project Implementation Unit
21
Tender rehab public market Lelydorp and temporarily market
DLGP-Project Implementation Unit
22
In execution Road paving project Falweg Saramacca
DLGP-Project Implementation Unit
23
Public tender road paving to improve Landfill Moengo
DLGP-Project Implementation Unit
24
Construction Multifunctional Centre Brokopondo
DLGP-Project Implementation Unit
25
Training management team involved in the execution of the communication paths in Boven-Suriname / Sipaliwini
DLGP-Project Implementation Unit
26
COSTS to date Financial Projection & Actual Amount IDB funds (2009-2014) Budget and actual expenditure PROJECT COST COMPONENT
1. Legal
ACTUAL COST (to date)
Balance
85,000
84,275
725
2. Fin. Plan. Adm.
1,815,000
1,336,445
478,555
3. Citizen Particip.
545,000
409,491
135,509
9,480,000.00
6,133,179
3,346,821
1,500,000
1,489,147
10,853
75,000
40,676
34,324
4. Cap. Invest. Progr 5. Adm. 6. Audits
27
BUDGET COST
TOTAL
DLGP-Project Implementation Unit 13,500,000 9,493,213
Revolving Fund
4,006,787 675,000
Actual Balance
27 4,681,787
COSTS Financial Projection & Actual Amount IDB funds (2009-2014) Budget planned, committed and actual expenditure
PROJECT COST COMPONENT
1. Legal
BUDGET COST
ACTUAL COST PROJECTED COMMITTED (to date) ACTUAL COST
%
BALANCE
85,000
84,275
0
84,275
0.99
725
2. Fin. Plan. Adm.
1,815,000
1,336,445
124,919
1,461,364
0.81
353,636
3. Citizen Particip.
545,000
409,491
26,004
435,495
0.80
109,505
4. Cap. Invest. Progr
9,480,000
6,133,179
3,708,397
9,841,576
1.04
(361,576)
5. Adm.
1,500,000
1,489,147
137,675
1,626,822
1.08
(126,822)
75,000
40,676
9,792
50,468
0.67
24,532
Implementation Unit 13,500,000DLGP-Project 9,493,213 4,006,787 13,500,000
1.00
28
6. Audits TOTAL 28
0
Costs Financial Projection & Actual Amount (2009-2014) 16000000 14000000 12000000
10000000
Planned Actual
8000000
Committed 6000000
Projected Actual
4000000
2000000 0 2009
2010
2011
2012
2013
2014
PIU-
submitted in time all documents as: Semester Report, financial Report, Procurement Plan, Disbursement Plan, AOP and the Midterm Evaluation Report
29
DLGP-Project Implementation Unit
29
Conclusions and recommendations • •
• • •
• •
• • • •
The period January-June 2014 was a very productive period because of the decisions. Once it was clear what to do and where we are going PIU could manage properly and could solve strategic wise the problems. There is still a lack of decision from the side of Government on what was agreed in the Loan Document regarding the two fiscal laws with the consequence that no longer attention has been paid to a follow up program. Now, this case could be an issue for the Workshop as plannen in October. Within the Legal component all is done what PIU had to do. What is not done is on the table of the Government. Based on the Interim Law Financial decentralization the goal to certify all the 10 Districts for Level 1: self financial management has been achieved for full 100%. Within the components and sub-components of capacity building the goals to certify al 10 Districts for Level 2 are achieved for full 100%. The goal to close the capacity building project cycle in the 5 remaining Districts Paramaribo, Sipaliwini, Coronie, Saramacca and Brokopondo is in good perspective and will be achieved successively the trial projects will be delivered before the closing date of The program on 20th September. The first out of the 5 trial projects was delivered recently on Monday 25 th of august and that was the opening of the public market at Apoera. See Star news August 29, 2014: http://www.starnieuws.com/index.php/welcome/index/nieuwsitem/24887 As far as it regards the execution of the capital investment projects, the PIU was able to commit all the contracts for the remaining projects. At the end of the Program all projects and the total related budget will be executed, without missing one project as it was scheduled and approved. A bigger succes of the Program one cannot imagine. Believe it or not! The PIU is working under a tight pressure to implement the before mentioned huge package of projects in such a short time frame of 6 months, while Task Managers are moving to other jobs. The PIU is strong enough to manage all the downs to prevent failures underway to a smooth closure of The Program. A team of one MD, 3 Task Managers is executing 17 projects spread over 10 Districts till deep in the interior of maroon and indigenous people area for a total amount of US$ 4 million within a time frame of 6 months. Good to mention and to know. Very sad to stipulate that there will be no smooth transition to a follow up Program, because of lack in fulfilling the condition from the side of the Government. Without the approval of the draft fiscal laws no follow up program. Up till now – a.o. July 2014- still there is no support from the Ministry of Finance to solve the problems in the transfer of petty cash, the payments for the office operation costs, and to maintain operations including all expeditions to the 10 districts and deep in the interior. No body takes care with the attitude of : the PIU will survive somehow. It doesn’t make any sense to come with recommendations, taking into account the previous semester reports. Some attention was paid, but no solution of problems. Nevertheless, we still go strong for the best outcome of DLGP-II.
DLGP-Project Implementation Unit
30
Impact IMPACT OF DLGP’s • • • •
The law on Regional Bodies is full in operation There is 10 times more capacity , spread over the 10 Districts in the country to move faster with implementing of developing programs and activities in close cooperation between central and local government with the civil society in partnership Now the Government can say that Suriname is a decentralized country with a stronger local democracy through the structures of citizen participation The condition and the capacity to fulfill for a follow up program is there,
STRONG REASONS TO CONTINUE with decentralization for the local economic development • • • • • • • • • • •
Since the project cycles are completed in 10 districts Since there is capacity to manage CIP – projects in 10 districts Since there is capacity in the private sector (40 local service providers and 40 international consultants were involved in The Program) Since there is capacity within MOF and MRD for the new role Once the legal frame work will be approved and will come in operation Once the Inter-District Foundation will be in operation Since there is a country-wide Wide Area Net Work in operation Since there is a PIU with fully loaded office, professional team with modern project management tools, familiar with Bank’s procurement rules, strategy and approach, with less overhead costs to coach the central and local governments Since there is a strong need to develop the communities and helping in achieving of the millennium goals and each of the District has their own multi Annual District Strategic Development Plan Since “decentralization” (road map) is an ongoing process Since the strategy was: DLGP-I and DLGP-II to establish a strong fundament to benefit Decentralization, local democracy and the citizens DLGP-Project Implementation Unit
31