Labor Management Procedures (LMP) Strengthening Social Protection System in Uzbekistan PROJECT CONTEXT 1. The World Bank and Government of Uzbekistan (GOU) are currently engaged in preparing a project – Strengthening Social Protection System, aimed at improving the social and labor market inclusion of the poor and vulnerable people, including those temporarily affected by the economic reforms in Uzbekistan. The Project would support GOU in enhancing its capacity to strengthen and roll out a social safety net to protect the poor and vulnerable as well as those temporary affected by the economic reforms. The project has twofold goal of protecting the poor and vulnerable and preventing the near poor to fall into poverty. To achieve these objectives, the operation would be structured in three components to strengthen social protection systems, improve effectiveness of labor market programs and develop a monitoring system: • Component 1. Modernizing the social safety net in Uzbekistan-- The objective of this component is to improve the effectiveness of key social interventions by better identifying the poor and vulnerable and providing a timely and predictable benefit to address their needs. The component will be implemented through two subcomponents: enhancing and rolling out the single registry and improving the effectiveness of social benefits. • Component 2. Strengthening the effectiveness of labor market programs-- The objective of this component is to (i) enhance the capacity of the MELR to implement job intermediation services and to (ii) introduce a new integrated labor market information system, and (iii) Strengthen the effectiveness of selected labor market interventions. • Component 3. Project Monitoring and Management-- The objective of this component is supporting Government to monitor and track labor market interventions and manage the overall IDA project. This component will include, on the one hand, developing and implementing a set of activities and tools to enhance Government’s monitoring capacity of social protection interventions, and on the other, financing a fully staffed Project Implementation Unit (PIU). 2. Environmental and Social Aspects. This project addresses the environmental and social aspects through the World Bank’s Environmental and Social Stands (ESS) approach/ framework. One of the Standard- ESS 2- relates to Labor and Working Conditions and expects the Borrowers to develop labor management procedures (LMP). The LMP enables identify main labor requirements and risks associated with it, and help the Borrower to determine the resources necessary to address labor issues. The LMP is a living document, which is initiated early in project preparation, and is reviewed and updated throughout development and implementation of the project. Accordingly, this document details out the type of workers likely to be deployed by the project and the management thereof. 1 OVERVIEW OF LABOR USE ON THE PROJECT 3. ESS 2 categorizes the workers into: direct workers, contracted workers, community workers and primary supply workers. The initial thinking at concept stage of this project envisaged repairs and rehabilitation of the existing employment centers. Given this (small to medium scale) civil works, the project encompassed the following two categories: the direct workers and contract workers. However, as the project preparation unfurled, contract workers, did not become relevant as it was decided not to include any civil works. Thus, the project has only one category of labor- direct workers who are either government civil servants (belonging to the Ministry of Employment and Labor Relations- MELR) or those deployed as ‘technical consultants’ by the project. While the civil servants are governed by a set of civil services code, the consultants will be by a set of mutually agreed contracts. These consultants will be housed in a Project Implementation Unit (PIU) to be established under the Ministry of Employment and Labor Relations (MELR), the key 4. Number of Workers. It is expected that the total number of technical consultants will be 11, details of which are as follows: № Consultant Duties and responsibilities Expected monthly remuneration 1. PIU coordinator General management, coordination and USD 1,200 control of implementation of components of the project, including financial, administrative and technical aspects of the implementation process 2. Labor specialist Implementation of project activities aimed USD 800 at improvement of ALMP provided by ESC 3. Community liaison officer Ensuring the compliance of PIU operations USD 800 and activities with the stakeholder engagement plan 4. Social development Ensuring the compliance of PIU operations USD 800 officer and activities with the social management plan 5. Monitoring and evaluation Compilation of data on monitoring and USD 1,000 official evaluation indicators, overseeing the implementation progress, preparation of evaluative progress reports 6. Financial management Ensuring the compliance of PIU operations USD 1,000 specialist and activities with the project operations manual, duly submission of all financial reports 2 7. Procurement specialist Timely provision of all procurement USD 1,000 operations and their compliance with the procurement plan 8. Safeguards specialist Monitoring of the implementation process USD 800 to ensure compliance with the ESS framework of the Bank 9. Accountant/Disbursement Implementation of all accounting USD 800 specialist operations and ensuring compliance of these operation with WB procedures and local legal norms 10. Social specialist Implementation of all activities related to USD 1000 the single registry roll out and social benefits improvements 11. IT specialist Implementation of IT related activities for USD 1000 single registry and Labor Market Information System 5. Timing and nature of labor requirements. All the nine consultants will be required full time for the entire project duration. Most of them will be required to travel extensively throughout the country for overseeing and guidance activities. 6. Characteristics of Project Workers: Taking into account the nature of the functions to be performed, the consultants in PIU will be specialists drawn from the market and who would have adequate and appropriate experience and exposure in their respective fields. Efforts will be made to ensure that women will comprise a third of the total. ASSESSMENT OF KEY POTENTIAL LABOR RISKS 7. No major labor risks are envisaged. A couple of the minor risks relate to: (i) interface between the MELR Government Officials and the Consultants; (ii) acceptability of the consultant workers by the other government agencies, especially, the Employment Support Centers; and (iii) term appointments- temporary nature of the tenure compelling to look for other jobs. These are all easily manageable with good leadership and capacity building programs. BRIEF OVERVIEW OF LABOR LEGISLATION 8. Labour codes, general labour and employment acts. Uzbekistan’s labor code of 1995 has provisions relating to non discrimination in labour relations, protection of labour rights, subjects of labour relations, representation of workers and employers, collective agreements and collective bargaining, job placement, labour contract, working time, rest and leave, wages, guarantee and compensation payments, labour discipline, material responsibility of labour contract parties, labour protection, additional guarantees and advantages to several categories of workers, labour disputes and State social security. 9. Uzbekistan has ratified the eight International Labor Organization (ILO) core Conventions, the last one (Freedom of Association and Protection of the Right to Organize Convention) was ratified 3 in 2016.1 14 conventions of ILO are officially in force in Uzbekistan.2 However, employers often ignore the provisions of these conventions. 10. According to Uzbekistan’s Labor Code, labor management relations should be formalized in a fixed-term or temporary employment contract.3 However, Uzbek employers have been known to circumvent labor laws by not signing contracts, particularly, for female employees to avoid payment of benefits during maternity leave. The maximum length of a single fixed-term contract is 5 years. The Labor Code and subordinate labor legislation differentiate layoffs and firing. Employees can terminate their employment by filing two-week prior written notice or apply for leave without pay. Layoff or temporary leaves without pay can be initiated by an employer due to worsening of the economic situation. For firing (severance), the employer should personally give two months’ advance notice in the case of corporate liquidation or optimization, two weeks’ advance notice in the case of an employee’s incompetence, and three days’ advance notice in the case of an employee’s malpractice or unacceptable violations. In case of severance caused by corporate liquidation or optimization, an employee should receive compensation, which should not be less than two average monthly salaries paid during his employment plus payment for unused leave (if another form of compensation was not agreed to in the employment contract). Officially, labor legislation cannot be waived or applied differently for private or foreign-owned enterprises, including those that operate in special economic zones. 11. By law, all employees of either local or foreign-owned enterprises operating in Uzbekistan have the following rights to: fair and timely payment of wages that should not be less than minimum monthly salary amounts set by the government; a standard workweek of forty hours, with a mandatory rest period of twenty-four hours and annual leave; overtime compensation as specified in employment contracts or agreed to with an employee’s trade union, which can be implemented in the form of additional pay or leave. The law states that overtime compensation should not be less than 200 percent of the employee’s average monthly salary rate (broken down by hours worked). Additional leave time should not be less than the length of actual overtime work; working conditions that meet occupational health and safety standards prescribed by legislation; compensation of any health or property damages incurred as a result of professional duties through an employer’s fault; professional training; formation and joining of labor unions; pensions; and legal support in protection of workers’ rights. 12. There is no single state institution responsible for labor arbitration. The general court system, where civil and criminal cases are tried, is responsible for resolving labor-related disputes. This can be done on a regional or city level. Formally, workers can file their complaints through the 1 ILO core conventions include: the Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87); the Right to Organize and Collective Bargaining Convention, 1949 (No. 98); the Forced Labor Convention, 1930 (No. 29); the Abolition of Forced Labor Convention, 1957 (No. 105); the Minimum Age Convention, 1973 (No. 138); the Worst Forms of Child Labor Convention, 1999 (No. 182); the Equal Remuneration Convention, 1951 (No. 100); and the Discrimination (Employment and Occupation) Convention, 1958 (No. 111). 2 On top of the 8 core conventions, the following conventions are ratified: Employment Policy Convention; Forty-Hour Week Convention; Holidays with Pay Convention; Maternity Protection Convention [Revised]; Workers' Representatives Convention; and Collective Bargaining Convention. 3 http://www.doingbusiness.org/data/exploreeconomies/uzbekistan/labor-market-regulation/ 4 Prosecutor General’s Office. The Ministry of Labor should provide legal support to employees in their labor disputes. 13. The law neither provides for nor prohibits the right to strike. In recent years, workers in state- owned energy and mining enterprises conducted strikes, demanding timely distribution of salaries. Reportedly, authorities agreed to negotiate, and eventually addressed most of the workers’ concerns. There is no public information about the role of official unions in these negotiations. 14. Although employees in Uzbekistan enjoy many rights by law, in practice these laws are subject to arbitrary and inconsistent interpretation. For example, the law prohibits compulsory overtime – and only 120 hours of overtime per year are permitted. In practice, overtime limitations are not widely observed, and compensation is rarely paid. Wage violations have become quite common in recent years. 15. On September 22, 2016, Uzbekistan amended the law “On Protection of Labor,� aimed at further improvement of the labor protection system, including occupational safety and health regulations. The Ministry of Labor establishes and enforces occupational health and safety standards in consultation with unions, but anecdotal reports suggest that enforcement is not effective. Although regulations provide for safeguards, workers in hazardous jobs often lack protective clothing and equipment. Labor inspectors conduct routine inspections of small and medium-sized businesses once every four years, and inspect larger enterprises once every three years. The ministry or a local governor’s office have traditionally been able to initiate selective inspection of a business, typically in response to an accident or complaint; however, a presidential decree issued in October 2016 sought to abolish unscheduled business inspections. 16. The law prohibits all forms of forced or compulsory labor, including by children, except as legal punishment for offenses such as robbery, fraud, or tax evasion, or as specified by law. However, the government has not always effectively enforced these laws and in some cases has ignored provisions of ratified ILO conventions. There have been high-profile cases in the cotton industry in which this has gained international attention. Overall, while the national legislative framework is quite good, there are a lot of apprehensions on the way they are implemented. RESPONSIBLE STAFF 17. Functioning and performance of all the technical consultants will be supervised by MELR. PIU Director, who is also expected to be deployed as a consultant, will be supervised by the Dy Minister of the MELR. The Director, in turn, will oversee the functioning of other consultants. Role and responsibilities expected as well as some broad indicators of performance will be agreed upfront between MELR and the consultants. 5 POLICIES and PROCEDURES This section outlines the main policies and procedures to be followed during the project period As needed, this section will be updated and amended as needed, after contracts have been awarded. Some key features of the procedures related to Hiring, Working Hours and Redundancy are presented below: Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single fixed-term contract (months) 60 Maximum length of fixed-term contracts (months)ᵃ 60 Minimum wage for a full-time worker (US$/month) ᵇ 105.9 Ratio of minimum wage to value added per worker 0.4 Maximum length of probationary period (months)ᶜ 3 Working hours Standard workday 8 Maximum working days per week 6 Premium for night work (% of hourly pay) 50.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 100.0 Restrictions on night work? No Non-pregnant and non-nursing women permitted to work same night hours as men? * Yes Restrictions on weekly holiday work? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (in working days) 15.0 Paid annual leave for a worker with 5 years of tenure (in working days) 15.0 Paid annual leave for a worker with 10 years of tenure (in working days) 15.0 Paid annual leave (working days)?ᵈ 15.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party notification if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party notification if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No 6 Retraining or reassignment?ᵉ Yes Priority rules for redundancies? Yes Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal (for a worker with 1 year of tenure, in salary weeks) 8.7 Notice period for redundancy dismissal (for a worker with 5 years of tenure, in salary weeks) 8.7 Notice period for redundancy dismissal (for a worker with 10 years of tenure, in salary weeks) 8.7 Notice period for redundancy dismissal (weeks of salary)ᵈ 8.7 Contract Procedures in the Project. All the All the specialists will be hired as consultants and as per the World Bank’s procurement norms and guidelines. This would mean the World Bank will approve TOR and contracts as well. The Terms of Reference for each member of the PIU will be prepared and included in the Project’s Operational Manual and should be acceptable to the Bank. The PIU will be adequately supported by necessary equipment, offices, training, and operational costs. In additional to these professionals, the PIU shall hire as many individual consultants as needed to help with the implementation of specific project activities over the course of the implementation. All the consultants will be trained on the World Bank policies and procedures and with additional implementation support after project effectiveness. A model contract for enlisting the consultants is attached. AGE OF EMPLOYMENT Uzbekistan does not allow persons below 18 to be employed for certain list of occupations with unfavorable conditions. This project employs specialists who will be at least Bachelors with a minimum of 5 years of experience. So, it will necessarily be more than 18 years. TERMS and CONDITIONS The World Bank’s 2017 Standard Procurement Documents for solicitations and contracts will be adopted for procurement. Terms and conditions governing the employment will be outlined in the contract document and cleared by the World Bank. NON-DISCRIMINATION AND EQUAL OPPORTUNITY 7 The project will promote non-discrimination and equal opportunities (e.g., female) in the employment of direct workers contracted through the project funds. As part of the hiring process, the project should promote diversity and encourage all qualified candidates to apply, regardless of gender, gender identity, religion, race, ethnicity, sexual orientation, or disability. GRIEVANCE MECHANISM MELR’s Civil Servants associated with the project will have access to Uzbekistan’s national grievance management arrangements. The Technical Consultants will be covered by the GRM developed for the project. It has a three tier GRM which and accessible to the full range of project stakeholders, including project-affected parties, community members, civil society, media, and other interested parties. Stakeholders can use the GRM to submit complaints, feedback, queries, suggestions, or even compliments related to the overall management and implementation of the project. To manage the project GRM, three successive tiers of extra-judicial grievance review and resolution will be in place: . • The first tier will be the mahalla. They will deal with issues that can be quickly resolved and would always involve direct communication with the person(s) who submitted the grievance. • The second tier will be a Grievance Resolution Committee (GRC1) that includes representatives of ESCs and of the complainant’s village and/or mahalla. The GRC1 will deal with issues that could not be resolved in the first tier. • The third tier will be a Grievance Redress Commission (GRC2) under leadership of PIU and includes one or more senior Regional Employment Department (RED) and ESCs managers and one mahalla and/or village leaders. GRC2 will resolve issues that could not be resolved by GRC1. Technical consultants can air their grievances to the third tier. A reference to this effect will be made in their contracts as well. Regrading direct workers contracted directly through project funds a separate grievance mechanism will be established through regular meetings with PIU coordinator/director and direct workers (PIU consultants) to raise and discuss potential work-related grievances that should be logged and addressed. 8 Sample Contract for Simple Consulting Services Small Assignments Time- Based Payments (IBRD/IDA financed) CONTRACT THIS CONTRACT (“Contract�) is entered into this [insert starting date of assignment], by and between [insert Client’s name] (“the Client�) having its principal place of business at [insert Client’s address], and [insert Consultant’s name] (“the Consultant�) having its principal office located at [insert Consultant’s address]. WHEREAS, the Client wishes to have the Consultant performing the services hereinafter referred to, and WHEREAS, the Consultant is willing to perform these services, NOW THEREFORE THE PARTIES hereby agree as follows: 1. Services (i) The Consultant shall perform the services specified in Annex A, “Terms of Reference and Scope of Services,� which is made an integral part of this Contract (“the Services�). (ii) The Consultant shall provide the reports listed in Annex B, “Consultant's Reporting Obligations,� within the time periods listed in such Annex, and the personnel listed in Annex C, “Cost Estimate of Services, List of Personnel and Schedule of Rates� to perform the Services. 2. Term The Consultant shall perform the Services during the period commencing [insert start date] and continuing through [insert completion date] or any other period as may be subsequently agreed by the parties in writing. 3. Payment A. Ceiling For Services rendered pursuant to Annex A, the Client shall pay the Consultant an amount not to exceed a ceiling of [insert ceiling amount]. This amount has been established based on the understanding that it includes all of the Consultant’s costs and 9 profits as well as any tax obligation that may be imposed on the Consultant. The payments made under the Contract consist of the Consultant's remuneration as defined in sub-paragraph B below and of the reimbursable expenditures as defined in sub- paragraph C below. B. Remuneration The Client shall pay the Consultant for Services rendered at the rate(s) per man/month spent1 (or per day spent or per hour spent, subject to a maximum of eight hours per day) in accordance with the rates agreed and specified in Annex C, “Cost Estimate of Services, List of Personnel and Schedule of Rates.� C. Reimbursables The Client shall pay the Consultant for reimbursable expenses, which shall consist of and be limited to: (i) normal and customary expenditures for official travel, accommodation, printing, and telephone charges; official travel will be reimbursed at the cost of less than first class travel and will need to be authorized by the Client’s coordinator; (ii) such other expenses as approved in advance by the Client’s coordinator.2 D. Payment Conditions Payment shall be made in [specify currency] not later than 30 days following submission of invoices in duplicate to the Coordinator designated in paragraph 4. 4. Project A. Coordinator Administrati on The Client designates Mr./Ms. [insert name] as Client’s Coordinator; the Coordinator shall be responsible for the 1 Select the applicable rate and delete the others. 2 Specific expenses can be added as an item (iii) in paragraph 3.C. 10 coordination of activities under the Contract, for receiving and approving invoices for payment, and for acceptance of the deliverables by the Client. B. Timesheets During the course of their work under this Contract, including field work, the Consultant’s employees providing services under this Contract may be required to complete timesheets or any other document used to identify time spent, as well as expenses incurred, as instructed by the Project Coordinator. C. Records and Accounts The Consultant shall keep accurate and systematic records and accounts in respect of the Services, which will clearly identify all charges and expenses. The Client reserves the right to audit, or to nominate a reputable accounting firm to audit, the Consultant’s records relating to amounts claimed under this Contract during its term and any extension, and for a period of three months thereafter. 5. Performance The Consultant undertakes to perform the Services with the highest Standard standards of professional and ethical competence and integrity. The Consultant shall promptly replace any employees assigned under this Contract that the Client considers unsatisfactory. 6. Confidenti- The Consultants shall not, during the term of this Contract and within ality two years after its expiration, disclose any proprietary or confidential information relating to the Services, this Contract or the Client’s business or operations without the prior written consent of the Client. 7. Ownership Any studies, reports or other material, graphic, software or otherwise, of Material prepared by the Consultant for the Client under the Contract shall belong to and remain the property of the Client. The Consultant may retain a copy of such documents and software.3 8. Consultant The Consultant agrees that, during the term of this Contract and after its Not to be termination, the Consultants and any entity affiliated with the Engaged in Consultant, shall be disqualified from providing goods, works or services 3 Restrictions about the future use of these documents and software, if any, shall be specified at the end of Article 7. 11 Certain (other than the Services or any continuation thereof) for any project Activities resulting from or closely related to the Services. 9. Insurance The Consultant will be responsible for taking out any appropriate insurance coverage. 10. Assignment The Consultant shall not assign this Contract or Subcontract any portion of it without the Client's prior written consent. 11. Law The Contract shall be governed by the laws of [insert government], and Governing the language of the Contract shall be4 [insert language]. Contract and Language 12. Dispute Any dispute arising out of this Contract, which cannot be amicably Resolution5 settled between the parties, shall be referred to adjudication/arbitration in accordance with the laws of the Client’s country. 13. Conflict of A. The Consultant is required to provide professional, objective, and Interest impartial advice, at all times holding the Client’s interests paramount, strictly avoiding conflicts with other assignments or its own corporate interests, and acting without any consideration for future work. 1.1 The Consultant has an obligation to disclose to the Client any situation of actual or potential conflict that impacts its capacity to serve the best interest of its Client. Failure to disclose such situations may lead to the disqualification of the Consultant or the termination of its Contract and/or sanctions by the Bank. 1.1.1 Without limitation on the generality of the foregoing, the Consultant shall not be hired under the circumstances set forth below: 4 The law selected by the Client is usually the law of its country. However, the Bank does not object if the Client and the Consultant agree on another law. The language shall be English, French, or Spanish, unless the Contract is entered into with a domestic firm, in which case it can be the local language. 5 In the case of a Contract entered into with a foreign Consultant, the following provision may be substituted for paragraph 12: “Any dispute, controversy or claim arising out of or relating to this Contract or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force.� 12 a. Conflicting (i) Conflict between consulting activities and procurement of activities goods, works or non-consulting services: a firm that has been engaged by the Client to provide goods, works, or non-consulting services for a project, or any of its Affiliates, shall be disqualified from providing consulting services resulting from or directly related to those goods, works, or non-consulting services. Conversely, a firm hired to provide consulting services for the preparation or implementation of a project, or any of its Affiliates, shall be disqualified from subsequently providing goods or works or non-consulting services resulting from or directly related to the consulting services for such preparation or implementation. b. Conflicting (ii) Conflict among consulting assignments: a Consultant assignments (including its Experts and Sub-consultants) or any of its Affiliates shall not be hired for any assignment that, by its nature, may be in conflict with another assignment of the Consultant for the same or for another Client. c. Conflicting (iii) Relationship with the Client’s staff: a Consultant relationships (including its Experts and Sub-consultants) that has a close business or family relationship with a professional staff of the Borrower (or of the Client, or of implementing agency, or of a recipient of a part of the Bank’s financing) who are directly or indirectly involved in any part of (i) the preparation of the Terms of Reference for the assignment, (ii) the selection process for the Contract, or (iii) the supervision of the Contract, may not be awarded a Contract, unless the conflict stemming from this relationship has been resolved in a manner acceptable to the Bank throughout the selection process and the execution of the Contract. 14. Unfair 1.2 Fairness and transparency in the selection process require Competitive that the Consultants or their Affiliates competing for a specific Advantage assignment do not derive a competitive advantage from having provided consulting services related to the assignment in question. To that end, the Client shall indicate in the Data Sheet and make available to all shortlisted Consultants together with this RFP all information that would in that respect give such Consultant any unfair competitive advantage over competing Consultants. 15.Corrupt and 3.1 The Bank requires compliance with its policy in regard to corrupt Fraudulent Practices and fraudulent practices as set forth in Attachment 1. 13 3.2 In further pursuance of this policy, Consultant shall permit and shall cause its agents, Experts, Sub-consultants, sub-contractors, services providers, or suppliers to permit the Bank to inspect all accounts, records, and other documents relating to the submission of the Proposal and contract performance (in case of an award), and to have them audited by auditors appointed by the Bank. 16. Eligibility 1.3 The Bank permits consultants (individuals and firms, including Joint Ventures and their individual members) from all countries to offer consulting services for Bank-financed projects. 1.4 Furthermore, it is the Consultant’s responsibility to ensure that its Experts, joint venture members, Sub-consultants, agents (declared or not), sub-contractors, service providers, suppliers and/or their employees meet the eligibility requirements as established by the Bank in the Applicable Guidelines. 1.5 As an exception to the foregoing Clauses 6.1 and 6.2 above: a. Sanctions 1.5.1 A firm or an individual sanctioned by the Bank in accordance with the above Clause 5.1 or in accordance with “Anti-Corruption Guidelines� shall be ineligible to be awarded a Bank-financed contract, or to benefit from a Bank-financed contract, financially or otherwise, during such period of time as the Bank shall determine. The list of debarred firms and individuals is available at the electronic address specified in the Data Sheet. b. Prohibitions 1.5.2 Firms and individuals of a country or goods manufactured in a country may be ineligible if so indicated in Section 5 (Eligible Countries) and: (a) as a matter of law or official regulations, the Borrower’s country prohibits commercial relations with that country, provided that the Bank is satisfied that such exclusion does not preclude effective competition for the provision of Services required; or (b) by an act of compliance with a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations, the Borrower’s Country prohibits any import of goods from that country or any 14 payments to any country, person, or entity in that country. c. Restrictions for 4.3.3 Government-owned enterprises or institutions in the Government- Borrower’s country shall be eligible only if they can establish owned Enterprises that they (i) are legally and financially autonomous, (ii) operate under commercial law, and (iii) that they are not dependent agencies of the Client To establish eligibility, the government-owned enterprise or institution should provide all relevant documents (including its charter) sufficient to demonstrate that it is a legal entity separate from the government; it does not currently receive any substantial subsidies or budget support; it is not obligated to pass on its surplus to the government; it can acquire rights and liabilities, borrow funds, and can be liable for repayment of debts and be declared bankrupt; and it is not competing for a contract to be awarded by the government department or agency which, under the applicable laws or regulations, is its reporting or supervisory authority or has the ability to exercise influence or control over it. d. Restrictions for 4.3.4 Government officials and civil servants of the Borrower’s public employees country are not eligible to be included as Experts in the Consultant’s Proposal unless such engagement does not conflict with any employment or other laws, regulations, or policies of the Borrower’s country, and they (i) are on leave of absence without pay, or have resigned or retired; (ii) are not being hired by the same agency they were working for before going on leave of absence without pay, resigning, or retiring (in case of resignation or retirement, for a period of at least 6 (six) months, or the period established by statutory provisions applying to civil servants or government employees in the Borrower’s country, whichever is longer. Experts who are employed by the government-owned universities, educational or research institutions are not eligible unless they have been full time employees of their institutions for a year or more prior to being included in Consultant’s Proposal.; and 15 (iii) their hiring would not create a conflict of interest. Attachment 1. Bank Policy – Corrupt and Fraudulent Practices (this Attachment shall not be modified) Guidelines for Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers, dated January 2011 and Revised July 2014: “Fraud and Corruption 1.23 It is the Bank’s policy to require that Borrowers (including b eneficiaries of Bank loans), consultants, and their agents (whether declared or not), sub-contractors, sub-consultants, service providers, or suppliers, and any personnel thereof, observe the highest standard of ethics during the selection and execution of Bank-financed contracts [footnote: In this context, any action taken by a consultant or any of its personnel, or its agents, or its sub-consultants, sub- contractors, services providers, suppliers, and/or their employees, to influence the selection process or contract execution for undue advantage is improper.]. In pursuance of this policy, the Bank: (a) defines, for the purposes of this provision, the terms set forth below as follows: (i) “corrupt practice� is the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party4; (ii) “fraudulent practice� is any act or omission, including misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain financial or other benefit or to avoid an obligation5; 4 For the purpose of this sub-paragraph, “another party� refers to a public official acting in relation to the selection process or contract execution. In this context “public official� includes World Bank staff and employees of other organizations taking or reviewing selection decisions. 5 For the purpose of this sub-paragraph, “party� refers to a public official; the terms “benefit� and “obligation� relate to the selection process or contract execution; and the “act or omission� is intended to influence the selection process or contract execution. 16 (iii) “collusive practices� is an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party6; (iv) “coercive practices� is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party7; (v) “obstructive practice� is (aa) deliberately destroying, falsifying, altering, or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede a Bank investigation into allegations of a corrupt, fraudulent, coercive, or collusive practice; and/or threatening, harassing, or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation, or (bb) acts intended to materially impede the exercise of the Bank’s inspection and audit rights; (b) will reject a proposal for award if it determines that the consultant recommended for award or any of its personnel, or its agents, or its sub-consultants, sub-contractors, services providers, suppliers, and/or their employees, has, directly or indirectly, engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices in competing for the contract in question; (c) will declare misprocurement and cancel the portion of the Loan allocated to a contract if it determines at any time that representatives of the Borrower or of a recipient of any part of the proceeds of the Loan were engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices during the selection process or the implementation of the contract in question, without the Borrower having taken timely and appropriate action satisfactory to the Bank to address such practices when they occur, including by failing to inform the Bank in a timely manner they knew of the practices; (d) will sanction a firm or an individual at any time, in accordance with prevailing Bank’s sanctions procedures8, including by publicly declaring such firm or an ineligible, either indefinitely or 6 For the purpose of this sub-paragraph, “parties� refers to participants in the procurement or selection process (including public officials) attempting either themselves, or through another person or entity not participating in the procurement or selection process, to simulate competition or to establish prices at artificial, non-competitive levels, or are privy to each other’s bid prices or other conditions. 7 For the purpose of this sub-paragraph, “party� refers to a participant in the selection process or contract execution. 8 A firm or an individual may be declared ineligible to be awarded a Bank-financed contract upon (i) completion of the Bank’s sanctions proceedings as per its sanctions procedures, including inter alia: cross-debarment as agreed with 17 for a stated period of time: (i) to be awarded a Bank-financed contract, and (ii) to be a nominated9 sub-consultant, supplier, or service provider of an otherwise eligible firm being awarded a Bank-financed contract. FOR THE CLIENT FOR THE CONSULTANT Signed by ____________________ Signed by ____________________ Title: ________________________ Title: ________________________ other International Financial Institutions, including Multilateral Development Banks, and through the application of the World Bank Group corporate administrative procurement sanctions procedures for fraud and corruption; and (ii) as a result of temporary suspension or early temporary suspension in connection with an ongoing sanctions proceedings. See footnote 12 and paragraph 8 of Appendix 1 of these Guidelines. 9 A nominated sub-consultant, supplier, or service provider is one which has been either (i) included by the consultant in its proposal because it brings specific and critical experience and know-how that are accounted for in the technical evaluation of the consultant’s proposal for the particular services; or (ii) appointed by the Borrower. 18 LIST OF ANNEXES Annex A: Terms of Reference and Scope of Services Annex B: Consultant’s Reporting Obligations Annex C: Cost Estimate of Services, List of Personnel and Schedule of Rates 19 20