Belize Municipal Development Project (Pll1928) Implementation Support Mission - November 7 - 10, 2016 Aide Memoire Introduction l. Between November 7 and 10, 2016, a World Bank (WB) team led by Diana Rubiano Vargas (Task Team Leader and Senior Disaster Risk Management Specialist) and comprised of Shafick Hoossein (Environmental Safeguards Specialist) and Keren Charles (Disaster Risk Management Specialist) visited Belize to conduct an implementation support mission for the Municipal Development Project (MDP). 2. The main objective of the mission was to advance the closing procedures for the Project. Mission activities included: (i) discussion on the Project completion report and the result framework; (ii) visits to the completed Project sites at Belmopan, Santa Elena/San Ignacio and Benque Viejo del Carmen; and (iii) discussion on the environmental safeguard wrap-up requirements. 3. The mission team held discussions with Ms. Nellie Trench (Acting Executive Director, Social Investment Fund (SIF», Mr. Ernest Raymond (Project Coordinator, SIF) and Mr. Deon Barker (Project Engineer, SIF). A detailed list of persons met is provided in Annex A. 4. This aide memoire summarizes the findings, recommendations and agreements reached during the mission and it is subject to confirmation by World Bank management. The aide memoire will be publicly disclosed once finalized. I. Implementation Status Overview Key Performance Ratinz Previous Current (September (October2016) 2016) Progress towards achievement of Project Developmeni Satisfactory Satisfactory Objectives Overall Implementation Progress Satisfactory Satisfactory Overall Safeguards Rating Satisfactory Satisfactory Disbursed (US$) $13.395 million $13,527,725.66 % Disbursed 89% 90% 5. Overview. Since the August 2016 supervision mission, the Project has continued to make solid progress in its completion. The Phase II works are essentially completed with only few items of works to be completed in Belmopan and Dangriga, which were delayed due to weather conditions. All other Phase II as well as all Phase I sub-projects have been satisfactorily completed. All of the technical assistance (TA) activities have been completed satisfactorily, except for the monitoring of the defects liability period ending September 2017. As of October 2016, the Project has disbursed about US$13,527,725.66, equivalent to approximately 90% of the loan amount. The total amount disbursed and committed is US$14,911,261.44 minion, which is about 99.4% of the total loan. II. Detailed Findings 6. Completion of Phase II Works. The PIU noted that almost all activities under Phase 2 have been essentially completed with the following remaining activities to be finalized: a. Belmopan. The remaining grills will be placed over the deep sections of the drains by November 18, 2016, weather permitting. This activity was delayed due to the recent rainfall. b. Dangriga. The road markings wi II be completed by November II, 2016, weather permitting. This activity was delayed due to weather conditions and the availability of paint to do the street linings. With the finalization of these tasks by November 18, 2016, all of the Project works will be completed. 7. Defects Liability. All of the Phase 2 works are in the defects liability period, which is one year after the completion of works. 50% of the retention amounts have been paid out to the contractors and the remaining 50% retention balance will be paid out through a retention guarantee and that does not expire until the end of the defects liability period. Slf will ensure that during the defects liability period there will be an engineer available to do the bi-monthly technical reviews. 8. Project Completion Report. The mission provided feedback on the Project Completion report that was prepared by the Pll,l and recommended some aspects in which the report could be strengthened. The mission noted that, in general, the report is well-written and summarizes the key Project accomplishments and lessons learnt. The mission recommended that the report be revised to highlight more of the team's accomplishments in project management: for example, better explanation of the selection process for the Phase 2 sites that included a multi-criteria socio-economic analysis or better discussion of how some of the challenges were addressed or resolved during Project implementation. In addition; the mission suggested that the technical analysis and conclusions be strengthened by including more clarifications and examples. The mission also recommended that the P[U use an editor, if possible, to help with the finalization of the report as it could be shared with other projects working in Belize. 9. Project Completion Report - Environmental. The report should include the challenge that post construction material required removal and the completion phase of the Project is just as important as the implementation phase. Post cleanup of construction is important as it maintains the integrity of the environment, human health and wellbeing as well as ensures the efficiency of the project is reached. to. Results Framework. The PIU provided the revised Results Framework in the Project Completion Report. The mission suggested that the numbers be finalized and re-submitted to the Bank by November 23,2016. II. Environmental summary. The mission conducted site visits during the mission to selected areas based on the sites close proximity to Belmopan and San Ignacio/Santa Elena. This was necessary as the time to visit sites was limited and therefore all sites visited noted in the table below. The table describes the observations made on each site visited and has associated recommendations. 2 , , SIrE. ViSITED : _C"i..\\:';~"_ '£, ENVIRONMENTAL OBSERVATIONS '>- ~~ -".'., - ,._ . .. , RECOMMENDATIONS _ BELMOPAN Waull Street - Construction debris consisting of aggregate and timber noted on the road sides - Construction aggregate and timber should be removed and and adjacent to the drains. Some areas have the debris piled up higher than the level the site rehabilitated to ensure minimal erosion impacts will of the drain and therefore susceptible to the debris falling into the drain and occur. blocking it. - Such construction material should be removed and - Drains functioning well given the high rainfall period just experienced during the disposed of at a licensed waste disposal site. week of the visit. - Drains have construction debris in the drain system. Roaring Street - Grates to cover the drains have been installed in areas where the drains are deep. They are also covered around corners to allow drivers to. drive over the drains if needs be. - As identified in the last mission in August 2016, construction debris was noted on the road sides and adjacent to the drains. This has not been cleared up as part of the completion of works. The sites have been closed and in compliance with the EMF require that all construction material be removed and disposed of at a registered landfi 11 site. Garbot Street - Construction debris and timber noted on the road sides, adjacent to and inside the drain channel itself. Blockages were noted where the debris has actively prevented water flowing as it should. Haulover Creek - Excess dry concrete from works was poured directly onto the ground. - The dry concrete should be removed from the site and the site rehabilitated. - A pile of gravel adjacent to the drain was observed that had not been removed since construction was completed. - Such construction material should be removed and disposed of at a licensed waste disposal site. - The drain had an area that was significantly backed up and stagnant water level was quite high. - The drains should be cleared as part of the maintenance plan by the town council. Barton Street - Construction debris noted on the road sides and adjacent to the drains which is - Construction aggregate and timber should be removed and overgrown with weeds. the site rehabilitated. - Such construction material should be removed and 3 disposed of at a licensed waste disposal site. SAN IGNACIO/SANTA ELENA Cahal Pech - Construction debris and timber noted on the road sides and specifically mounds of - It is important that the town council is aware of how debris were noted at road corners/T Junctions. important it is to continue maintenance of the drains and keep them clear of debris. Salazar Street - Construction rubble, litter and debris were observed in sections of the drainage system and on the road sides which clogs some areas. - Surrounding residents should also be encouraged through their organized structures to keep the drains adjacent to - Grey water outlets observed directly discharging into drains without pre- their properties clear as the impacts of blocked drains treatment. directly affect them. Carmelita Street - Clearing during maintenance efforts of the ditches is done and the debris is stockpiled adjacent to the drains which falls back into the drainage channel. BENQUE VIEJO c Juanita Gongora - Construction material in the form of small patches of aggregate located along the - Construction aggregate and timber should be removed and and Independence drains was present, but not as copious as noted at the other sites. the site rehabilitated. Street - Such construction material should be removed and disposed of at a licensed waste disposal site. 4 12. Environmental Recommendations. a. The PIU has noted that residents have expressed a desire to reuse and recycle the excess construction material like the aggregate for improving their driveways and the like. However, some residents have not used the material and it still lies along the streets. It is recommended that the TCCs in conjunction with the PIU inform the residents that the material is available up to a deadline date, which thereafter will be removed and disposed of at a licensed facility. b. The PIU should work with the TCCs and the contractor to remove any unwanted construction debris under the defects liability period. 13. Undisbursed Funds. Based on the projected activities and the amount of funds committed, it is expected that approximately US$88,000.00 will remain undisbursed as at the Project closing date. 14. Procurement No contracts have been signed under this project since October 2015. As part of its fiduciary responsibility, the Bank conducted a procurement post review during the supervision mission of the project Municipal Development Project (P 111928) on July 19, 2016. The mission identified that some of the Contract Forms used by BSIF were not in an acceptable format, as clauses relating to Fraud and Corruption were lacking. The Bank forwarded to SIF for its immediate use, on July 29, 2016 the correct Forms of Contract for the Shopping Procurement Procedure for Goods and Small Works, and Selection of Small Consultancies. As it was noted that all the contracts that has already been awarded using unacceptable standard forms of contract had already been performed and completed without any contractual issues, no further action will be pursued at this stage of the project. The Bank has, however, advised SIF to take special note of the appropriate Contract Forms that shall be used in all Bank-financed projects and to ensure that approved standard forms of contract, that include the required Fraud & Corruption and Right to Audit clauses, are used. 15. Sustainability. The mission highlighted the importance of maintaining the development achieved by the Project. The PIU informed the mission that they will meet with the Mayors on Thursday, November 10, 2016 to present the key findings and recommendations of the Project. The mission noted that this would be a good opportunity to discuss the sustainability of the activities started under the Project and asset maintenance. To this end, the mission proposed the following recommendations to be included in the discussion: a. Sustainability. The PIU should highlight the importance of continuing the good .governance practices started under the Project (for example, continuing Town Hall meetings and revenue enhancement practices). In addition, the PIU should encourage the TCCs to engage with the Ministry of Local Government for support in technical issues. b. Environmental Sustainability. The PIU should encourage the TCCs to raise awareness of the environmental issues and their effect on the community. Environmental awareness raising for the implementing agency, town councils and residents through the project provides value for the future projects to be implemented. c. Removal of construction debris. Post construction cleanup of the sites is important for the long term sustainability of the project. It is recommended that the TCCs in conjunction with the PIU inform the residents that the material is available up to a deadline date, which thereafter will be removed and disposed of at a licensed facility. The PIU should work with the TCCs and the contractor to remove any unwanted construction debris under the defects liability period. d. Maintenance. The PIU should stress the importance of asset maintenance, including regular cleaning of the drains. e. Community Engagement. The PIU should note that residents playa major role in ensuring that the infrastructure remain well-maintained and encourage the TCCs to work with their communities to take an active role in maintenance. 5 lIl. Conclusions 16. The mission expresses its overall satisfaction with the Government and PIU/SIF staff for participation in the mission in the week of November 7. 2016. 17. The MOP investments have been advanced as planned and the Project is coming to an end on November 30, 2016. Recommendations, including those on environmental safeguards, have been discussed with the P1U to be communicated to the TCCs. Comments have been provided on the Completion Report prepared by the P1U. This report can be shared with otherprojects once completed . . The Team does not have any major issues on the implementation of the Project, and would like to highlight the commitment and capacity of the PIU to uccessfully achieve the Project's objectives. 18. An Implementation Completion Report (ICR) team will be coming to Belize during the week of November 14, 2016 to advance the preparation of the ICR. a Rubiano Vargas Yvonne Hyde Chief Executi v·_/r'-·~er Task earn Leader The World Bank Group Ministry of Economic Development and Petroleum 6 Annex A: List of People Met Belize Sociul In vcstment fUlld Nellie Trench Acting Executive Director/Finance Coordinator Emest Raymond Project Coordinator Deon Barker Project Engineer Therese Arzu Administrative Assistant Annex B: Action Plan Relevant Rccorn men da tion/ Action Responsible Due Date Activities Agenc) 1 Works Continue to monitor ongoing Phase [I works P[U November 11,2016 construction contracts to satisfactory completion and handover 2 Results Update the numbers for the Results P[U November 23,2016 Framework Framework 3 Technical Provide comments on the technical evaluation WB November 11,2016 Evaluation Report 7