99025 Belize: Municipal Development Project (P111928) Climate Resilient Infrastructure Project (P127338) Caribbean Disaster Risk Financing Technical Assistance Program Implementation Support Mission – June 15 – 19, 2015 Aide Memoire I. Introduction 1. A World Bank team comprised of Diana Rubiano Vargas (TTL and Disaster Risk Management Specialist), Eric Dickson (Sr. Urban Specialist), Noreen Beg (Sr. Environmental Specialist), Peter Lafere (Social Development Specialist), Stephen Brushett (Lead Transport Specialist-Consultant) and Keren Charles (Disaster Risk Management Specialist-Consultant) conducted an implementation support mission from June 15 to June 19, 2015 for the Municipal Development Project (MDP) and the Climate Resilient Infrastructure Project (CRIP). Rashmin Gunasekera (Sr. Disaster Risk Financing Specialist) and Keren Charles (Disaster Risk Management Specialist-Consultant) also conducted a technical mission for the Disaster Risk Financing Technical Assistance (DRF-TA) Program. 2. The objectives of the mission were as follows: a. For the MDP and the CRIP to: (i) introduce the new TTL to key government officials and the project management units; (ii) conduct site visits to completed Phase I works and proposed Phase II works; (iii) assess the compliance of social and environmental safeguards; (iv) advance discussions with the Ministry of Local Government on the sustainability of the technical assistance programs; and (v) review project implementation. b. For the DRF-TA were to: (i) provide an overview of the Caribbean DRF Technical Assistance Program, and define expected activities, outcomes and timeline to Ministry of Finance; (ii) share preliminary findings from the DRF country diagnostic; and (iii) conduct preliminary discussions with key stakeholders including private sector (insurance industry) and insurance regulator regarding the DRF-TA. 3. The mission team held discussions with Ms. Yvette Alvarez (Sr. Adviser, Ministry of Finance, MoF), Ms. Alma Gomez (Supervisor of Insurance, MoF), Ms. Gina Young (Deputy Lands Commissioner, Ministry of Natural Resources and Agriculture, MNRA), Ms. Ingrid Gillet (Deputy Lands Commissioner, MNRA), Mr. Irving Thimbriel (Sr. Executive Engineer, Ministry of Works and Transport, MoWT), Mr. Edmund Zuniga (Acting Chief Executive Officer, Ministry of Local Government, MLG), Mr. Eugene Palacio (Director, MLG), Mr. Shelton DeFour (Acting Director, National Emergency Management Organization, NEMO), Mayors and Town Councils of Belmopan, Orange Walk, Corozal, Dangriga, Punta Gorda, San Ignacio/Santa Elena and Benque Viejo, Mr. William Lamb (Executive Director, Social Investment Fund, SIF), Mr. Ernest Raymond (Project Coordinator-MDP, SIF), Dr. Wendel Parham (Project Coordinator-CRIP, SIF), engineers working on the ongoing works and the staff of Project Implementation Units (PIU/PMU). The mission went to all participating municipalities to visit completed, ongoing and prospective works under the project and to discuss the impact of capacity building activities. The mission expresses appreciation for the kind support extended to the Bank team during the mission (a detailed list of persons met is provided in Annex 3). 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. 1 Municipal Development Project (MDP) II. Implementation Status Overview 5. Key Project Data and Performance Rating Key Performance Rating Previous Current (Nov 2014) (Jun 2015) Progress towards achievement of Project Development Objectives Satisfactory Satisfactory Overall Implementation Progress Moderately Satisfactory Satisfactory Overall Safeguards Rating Moderately Satisfactory Satisfactory Disbursed (US$) $8.3 million $10.3 million % Disbursed 55% 69% 6. Since the last supervision mission in March 2015, the Project has continued to make progress in its implementation. All Phase I small works have now been completed as have Phase II small works in Benque Viejo, Corozal (exception of the sports complex) and Orange Walk. The designs for the Phase II street and drainage have been finalized and the works have been advertised for six of the seven municipalities. All of the technical assistance (TA) activities have been completed while the mission re- iterated the need to ensure the sustainability of the activities after Project completion. As of June 15, 2015, the Project has disbursed about US$10.3 million, equivalent to approximately 69% of the loan amount. The total amount disbursed and committed is US$11.2 million, which is about 75% of the total loan. 7. Extension of Project Closing Date. On June 3, 2015, the World Bank notified the Government of Belize of its approval to extend the Project from November 30, 2015 to November 30, 2016. This extension will enable to Government to complete all of the proposed works under the Project. The mission stressed the importance of adhering to the new completion date and reviewed the implementation schedule in detail with the understanding that no further project extensions would be possible. The mission also highlighted the importance of retaining key project staff to ensure the successful completion of the Project. The PIU was informed that it should update its procurement plan and re-submit to the Bank for no objection given the one year extension of the Project. The results framework has been updated to reflect the one year extension and was agreed upon by the Bank and the Government in an email dated June 2, 2015. 8. Safeguards overview. The mission monitored the implementation of social and environmental safeguards at the project sites and screened future sites and as a result has recommended upgrading the safeguards rating to Satisfactory. Completed sub-projects visited in Orange Walk, Corozal, Punta Gorda, and Benque Viejo have been implemented and maintained to good environmental standards. In Dangriga, while the hygiene standards in the meat and fish sections are high, and the new textile market is well lit and ventilated, concerns remain about the soak-aways which are not draining adequately due to the high water table. The mission recommended that a remedial plan be prepared and shared with the Bank. In San Ignacio/Santa Elena, the mission recommended that the Council ensure that the gutters along Eden Street are kept clear of debris and regularly cleaned. For sub-projects where resettlement has been completed, the mission highlighted the importance of preparing a Resettlement Completion Report that summarizes the activities undertaken, compensation measures implemented and that reflects lessons learned. 2 III. Detailed Findings by Component Component 1: Municipal Infrastructure Investments 9. Satisfactory progress has been achieved since the last supervision mission in March 2015. Most of the ongoing small civil works have been completed and there are no major construction issues to be addressed. The designs and cost estimates of the Phase II Street and Drainage improvement works have been approved and bid documents for the works packages for all Town Councils with the exception of Dangriga have been issued. The following section summarizes key findings. 10. Completion of Phase I Works a. Dangriga Market (W5A). The sub project is in its defects liability period which runs to October, 2015. The site visit revealed a number of minor construction issues that need to be addressed by the contractor, including replacement of some electrical fittings and fixtures in the new building. In addition, there are a few safeguard concerns that are listed below: i.Social. All Resettlement activities for the works under Phase I have been completed in accordance with the Resettlement Action Plan. The mission requests that the PIU prepare a formal Resettlement Completion Report. The mission also took note of the Town Council’s reference to the possibility of moving remaining vendors, who are currently adjacent to the market, to another site. The mission highlighted that if the Town Council in fact opted to proceed with this proposal, it would be considered as resettlement related to the project, and thus the Bank’s OP 4.10 would need to be applied. The mission underscored that in such a case, the required Resettlement Action Plan (RAP) would be comparable to the original RAP prepared for Dangriga where vendors were relocated to a temporary/improved location. As such, while both the preparation and the implementation of these resettlement activities would ultimately be the responsibility of the Town Council, the mission highlighted the role of the Social Officer of the SIF in advising the Town Council on this process. The mission requested that the SIF remain informed of the Town Council’s decision making with r espect to the proposal, and report to the Bank’s task team. ii.Environment. While the hygiene standards in the meat and fish sections are high, and the new textile market is well lit and ventilated, concerns remain about the soak-aways which are not draining adequately due to the high water table. The PIU is asked to work with the Council to prepare a remedial plan to address this issue – either through regular pumping or installation of pipes from the soak-aways to a grey-water tank, which would require less frequent emptying and would lessen disruption to market activities. The plan will be submitted to the Bank by end July 2015. The PIU is also requested to ensure that the market stall currently placed on top of the leach field be relocated, as it is important that the leach pit be aerated. It is noted that the ablution block is maintained to a very good standard, and that the septic tank is operating well. The market is generally extremely well maintained, though attention needs to be given to keeping covered drainage channels garbage free and also to addressing the removal of debris from the adjacent canal which continues to be a concern in terms of health and pollution risk, given the lack of regular water flow. b. Santa Familia Street, Orange Walk (W13). The road works were completed in September 2014. The Town Council is currently undertaking required additional work to ensure that road markings and signage are finished. 3 11. Phase II Works a. Rehabilitation of Market and Upgrading of Sports Complex, Corozal (W15 incorporating W19) i.Market. The construction of the market is complete and is expected to be handed over during the week of June 22, 2015. The issue of water supply to the new stalls was raised by the council as this had not been included in the original design. PIU clarified that this had not been not required as the stall holders were textile retailers, whereas food sales and preparation are now envisaged. The mission requested clarification on the end use on the stalls and suggested that the Council’s responsibility for any additional funding for the water supply be established. In addition, the mission suggested that the PIU contact the cultural and archaeological heritage authorities to hold an exhibit – at the launch of the market – in the four rehabilitated corner posts of Fort Barlee. This would perhaps be an incentive to maintain the four posts as clean and usable. ii.Sports Complex. The mission noted that works were near completion, on time and within budget, but shared the following observations in regard to the importance of ensuring the sustainability and maintenance of the sport complex. The Council should: (i) develop through the SIF Social Officer an appropriate consultative mechanism concerning the general use of the facilities between the Council and the community; (ii) ensure safe access and use of the facility for players and spectators through adherence to the relevant national regulations; (iii) take action on immediate complementary investments in garbage collection and waste control; and (iv) consider medium term action to improve landscaping and social facilities in the rest of the park area. One idea to ensure sustainability and appropriate maintenance of the complex would be to confer responsibility for different areas sections to sports teams, with a yearly award or recognition for the best maintained section. b. Upgrading of Central Park, Orange Walk (W16). The mission commends the Council for the excellent work in rehabilitating the park, planting new trees, and installing effective waste collection systems. c. Sidewalks for Town Center and Centennial Park, Benque Viejo (W17). The works have been completed on time and within budget. The Park is well maintained perimeter fence has been built around one set of tombs, and many of the other tombs have been cleaned up. The sidewalks in the town center are well constructed, with plentiful outlets for storm water. d. Santa Elena – Eden Street. The earth-lined gutters in Santa Elena, along Eden Street, are overgrown and in many places clogged with debris. The mission suggests that the Council undertake more regular clearing of gutters. e. Preparation of Designs, Technical Specifications and Cost Estimates for the Rehabilitation of Municipal Streets (C36). The final report was approved by the Bank and the designs were finalized. f. Supervision of the Rehabilitation of Municipal Streets (C37). The contract has been signed with RM Engineering in association with DE&F Engineering for US$376,400. The firm has reviewed and provided comments on the designs for the Phase II street and drainage improvement works which were reflected in the Inception Report. The firm will re-engage once the works contracts have been awarded and construction is ready to commence. 4 g. Phase II Street and Drainage Improvement Works. The mission discussed the timeline for the proposed Phase II street and drainage improvement works. Annex 4 shows the revised implementation schedule. i.Batch 1: Corozal and Orange Walk (W20), San Ignacio/Santa Elena (W22), Benque Viejo (W23), Belmopan (W24) and Punta Gorda (W26). Works were advertised in May 2015 and responses are expected by June 25, 2015. Works are expected to commence in August 2015, with a proposed completion around May to July 2016. In the case of Belmopan where the budget was not adequate to cover all the proposed works. The mission was informed by the PIU and the Council that local funds are to be made available to complete the remaining Phase II streets broadly within the time frame of the Project. Based on visits to several of the proposed new sites, the importance of the works, particularly in low-income areas, and in streets that would serve as emergency evacuation routes, is evident. None of the proposed projects pose environmental impacts beyond the normal temporary impacts during construction. ii.Batch 2: Dangriga (W25). Advertisement is expected for August 2015, works commencing in December 2015, with proposed completion of August 2016. 12. Cost allocation. The initial amounts allocated to each municipality were calculated at the beginning of the Project; however, at Dangriga has been identified to not have the sufficient allocation to cover the costs of the proposed Phase II works. To resolve this, the SIF has proposed that all cost savings from the remaining works from Phase II be transferred to Dangriga. The SIF described formal mechanism to transfer funds will ensure the transparency of the process. 13. Eligibility Criteria for Phase II. All Town Councils have met the eligibility criteria. In the event that works are less than the originally calculated allocation for a municipality, the Town Council will receive a refund of their original 3% contribution that reflects the actual amounts. Component 2: Technical Assistance and Capacity Building 14. National Level Policy Linked to Sustainability of TA program. The mission observed that, while all the TA activities have been successfully completed and are being diligently followed up, there are broader policy issues directly linked to long-term sustainability of TA program. Policy issues include clarifying roles and responsibilities between the national and local government (e.g. traffic management, subvention formula) and institutionalizing capacity building at central government to provide continued support to town councils. The mission met with the Ministry of Local Government on this matter and was ensured of the Ministry’s ongoing commitment to deepen its engagement with Town Councils and to ensure adequate staffing to that end. Component 3: Project Management 15. Project Staffing. The mission discussed Project staffing and the key findings are outlined below: a. Reduced staff for extension. The PIU informed the mission that the proposed staffing plan during the extension of the Project included: (i) the Project Coordinator; (ii) the Engineer and Environmental Specialist; (iii) the part-time Engineer consultant; and (iv) the Administrative Assistant. The Procurement and Financial Management (FM) functions would be shared with the CRIP. The mission highlighted to need to maintain Social Safeguards and Monitoring and Evaluation (M&E) capacity and encouraged the PIU to ensure that these tasks would be conducted during the remaining life of the Project. b. Project Engineer (2). The engineer consultant has been selected and is expected to be on board from July 2015. He will be working on a part time basis on terms and conditions agreed to be the PIU and reviewed by the Bank. This recruitment will help to enhance the PIU’s engineering and 5 supervision capacity during the supervision of the Phase II street and drainage improvement works. c. Procurement Specialist. The Procurement Specialist for the CRIP will provide cross-support to the MDP. 16. Project Highlights. The mission was informed that a team within the PIU will focus on capturing the achievements and lessons learnt for the Project over the next six months. The PIU will share with the Bank the work plan and format to accomplish this task by end August 2015. Climate Resilient Infrastructure Project (CRIP) IV. Implementation Status Overview 17. The CRIP became effective in May 2015. The RFP for the Feasibility study is under preparation and the Terms of Reference for the Environmental and Social Impact Assessment (ESIA) is being finalized. The PMU is currently recruiting a procurement officer and has proposed establishing a procurement unit to enhance the project management capacity. The Contingency Emergency Response Component (CERC) Operations Manual, a requirement for the effectiveness of Component 4, is under preparation and expected to be submitted to the Bank by June 30, 2015 given the onset of the current hurricane season. As of June 15, 2015, the Project has disbursed about US$ 0.6 million, equivalent to approximately 2% of the loan amount. The total amount disbursed and committed is US$ 0.8 million, which is about 3% of the total loan. V. Detailed Results by Component Climate Resilient Investments 18. Feasibility Study. The mission reviewed its comments submitted earlier with the PIU and the MoWT on the request for proposals (RFP) document. Consequently, the revised RFP is expected to be submitted to the Bank by July 10, 2015. The revised RFP will include the short list of consultancy firms and joint ventures which has already been reviewed by the Bank. 19. Environmental and Social Impact Assessment (ESIA). The mission reviewed the Terms of Reference for the ESIA and Management Plans for Miles 9.5- 24.5, Philip Goldson Highway. The mission cleared the ToR pending the review of the insertion of a Section on the Resettlement Action Plan (RAP). The revised document would be submitted to the Bank for clearance by July 10, 2015. The mission recommended that the development of a RAP be included as a separate task and deliverable for the ESIA given the high likelihood that involuntary resettlement will be necessary. The mission also recommended that the SIF Social Officer supervise or advise the consultants in the development and implementation of the said plan. The mission reminded the PMU that implementation plan outlining the involvement of the DoE, and how the costs would be covered, was still outstanding. Technical Assistance for Improved Climate Resilience Management – Support to the Ministry of Natural Resources and Agriculture (MNRA) 20. National Spatial Data Infrastructure (NSDI). a. Committee Conformation. The mission was informed that the draft Charters for the conformation of the Executive and Technical Committees have been prepared and are under final review. The 6 mission highlighted the importance of advancing in this review in order to initiate the formalization of the respective Committees. MNRA will share the final versions of the Charters by July 2015. b. NSDI Consultancy. The NSDI consultant’s Interim Report remains under review by the MNRA, and is expected to be received by June 26, 2015. The mission highlighted the importance of advancing in this review. MNRA will share the Interim Report by July 31, 2015. c. NSDI Systems Administrator. The mission was informed that a selected candidate had rejected an offer given the large difference between the expected and offered levels of remuneration. The mission recommended that the SIF and MNRA explore possibilities of modifying the existing TOR in order to improve likelihood of finding a suitable candidate, or exploring the possibility of direct contract contingent upon the Bank’s approval. With a view to ensuring the sustainability of the NSDI management, the MNRA also proposed reducing the contract timeframe of the Systems Administrator. This would be complemented by a supporting technical position which person would assume day-to-day responsibility during the second to third year of the project, and would be guided on a needs basis by the Systems Manager. The Bank requested a written proposal of the above described framework and suggested profiles in order to consider its possible inclusion in the Project by July 10, 2015. 21. Land Use Planning TA. The mission was informed that the Bank’s previously submitted recommendations had been incorporated into an updated draft of the TOR, and that the MNRA CEO was finalizing additional inputs. The SIF confirmed that the final version would be shared with the Bank by June 26, 2015, for a final technical review given that the Bank had already provided the no-objection. Technical Assistance for Improved Climate Resilience Management – Support to the Ministry of Works and Transport (MoWT) 22. Testing Laboratory. The mission reviewed progress being made in regard to the specification of equipment and the required training for the proposed improvement of the MoWT testing laboratory. MoWT plans to have a proposal ready to submit to the Bank for review by mid-July 2015. 23. Road Maintenance Unit (RMU). The mission confirmed with MoWT its intention to provide a further proposal for possible funding under the Project in regard to equipment and training for the strengthening of the RMU. The timing of this action is dependent on the receipt by MoWT of proposals by a consultants funded out of the ongoing IDB loan. 24. Institutional Analysis. The Caribbean Development Bank (CDB) has recently contracted a consultant to conduct an institutional analysis of road management in the MoWT as well as options for road maintenance funding that is expected to take at least six months. Based on the results of the study, the MoWT may propose additional technical assistance activities to be funded under the Project. Project Management 25. Staffing. The SIF has proposed the creation of a Procurement Unit, headed by a Procurement Coordinator and comprised of Procurement Officers. The unit would have a similar structure to that for Financial Management unit currently at the SIF and would be independent of donor projects. The rationale for the Unit is: (i) to enhance procurement capacity; (ii) to attract and retain top procurement talent; (iii) to develop an on-the-job training environment, (iv) to increase the pool of eligible candidates for Procurement officer; and (iv) to enhance institutional memory in the case of turnover. The cost of the 7 Procurement Coordinator is expected to be shared equally by the SIF projects. The Bank will review the proposal and provide comments by June 30, 2015. 8 Disaster Risk Financing – Technical Assistance Program (DRF-TA) 26. Objectives. The DRF-TA aims to support Belize: (i) in assessing the fiscal shocks derived from disasters; (ii) in building institutional and technical capacity in disaster risk financing; and (iii) in assessing current tools and identifying affordable, effective financial protection options based on understanding of the fiscal exposure against disasters (contingent liabilities from disasters). This TA would complement and be aligned with all the ongoing disaster risk management activities such as the CRIP. 27. Overall, the mission noted that there is keen interest from the Government and the insurance sector on advancing the DRF-TA engagement. The mission stressed the importance of close collaboration between the MoF and WB to ensure that the results of the TA are useful and that there is capacity building. The mission developed a better understanding of the post-disaster public financial management (PFM) systems as well as the insurance regulatory perspective on the local insurance market and the resilience of the domestic insurance market in Belize. The mission got access to key data on insurance and post-disaster damages and losses for the past ten years. Key findings from the mission are in Annex 5. 28. Agreements. Ms. Yvette Alvarez (Sr. Adviser) was identified as the key focal point within Ministry of Finance for the TA engagement with Ms. Alma Gomez (Supervisor of Insurance) support from an Insurance regulatory perspective. In addition, Ms. Gomez agreed to work in partnership with the Bank to develop the research assessment of the domestic insurance market as well as to facilitate and collate insurance loss and market information. 29. Next Steps. The following next steps were agreed upon during the mission: a. Insurance Industry Survey. The Insurance Supervisor will share a questionnaire with domestic insurance companies to elicit detailed feedback on insurance of disaster risk and gauge the resilience of general insurance companies. The responses are expected by July 3, 2015. b. Data Provision. The mission explained that the TA will hire consultants, including a national focal point, to collect and analyze data within the next 3 – 6 months. The stakeholders agreed to provide information to the consultants once engaged. c. Timeline. The provisional timeline of the TA was agreed upon:  Identification of additional project staff (by September 2015)  Research and analysis on the post-disaster Public Financial Management, Insurance Market and historical impacts of natural disasters with regular discussions with MoFED focal point with completion (by March 2016)  Recommendation for financial protection strategy against (by August 2016)  Review for MoFED (by November 2016)  Publication (by March 2017) ___________________________ ____________________________ Yvette Alvarez Diana Vargas Rubiano Senior Adviser Task Team Leader Ministry of Finance World Bank 9 Annex 1a: MDP Action Plan Relevant Recommendation/Action Responsible Due Date Activities Agency 1 Works Phase II Street and Drainage Works Bid PIU End July 2015 Evaluation and Award of Contract for 6 towns 2 Works Finalize Dangriga Phase II Street and PIU August 2015 Drainage Works Bid Documents and Issue IFB 3 Works/ Submit to Bank Dangriga Town Council’s PIU/Council End July 2015 Environmental remedial plan to address grey water Safeguards evacuation and solid waste disposal in the sub-project’s operational phase 4 Reporting Submit plan to record project highlight to the PIU End August 2015 Bank Annex 1b: Outstanding Action Plan Update from Last Mission (March 2015) Relevant Recommendation/Action Responsible Due Date Status Activities Agency 1 Works Santa Familia (W13): Completion PIU/ End-November Ongoing. Road of works Consultants 2014 markings and signage still to be finished 2 Environmental Dangriga Market: Ensure that PIU Timing Completed. But Safeguards installation of soak-aways, grease dependent on performance issues traps, and septic tank are properly construction have arisen under installed, by on-site supervision schedule operation that need during the process. to be addressed Undertake a baseline water First sampling by Sampling will quality analysis of the ambient end-July continue water quality in Dangriga Canal throughout defects and upstream. liability period Install siltation barrier to prevent Prior to solid waste in the canal from completion of entering the open sea. civil works Completed 3 Environmental Future sub-Projects must have a PIU Prior to Completed Safeguards – brief EIA (where required by commencement Phase II sub- GoB environmental regulations of civil works on Projects and/or World Bank Ops) and/or Phase II sub- an EMP checklist prepared and Projects disclosed prior to the start of works. Consultation with local stakeholders on the EIA/EMP must take place and be documented in an annex to the EIA/EMP. 4 Project Extension Consider formal request for PIU End March 2015 Completed 10 Project extension with revised implementation schedule 5 Environmental Submit Environmental report for PIU April 10, 2015 Completed Safeguards the Dangriga Market operations 6 Works C36: Submit draft final report PIU March 27, 2015 Completed including final design and cost estimates to the Bank for review 7 Works Submit ITB documents for the PIU Mid-April 2015 Completed various Phase II works packages for Bank review 8 Staffing Submit ToR for second Project PIU March 27, 2015 Completed Engineer 9 M&E Provide revised table with PIU March 27, 2015 Completed detailed results 10 M&E Propose methodology and PIU Mid-April 2015 Completed provide updated indicators 11 Procurement Corozal Works (W15 and W19): PIU November 21, Completed Submit bid evaluation report 2014 12 Phase II Eligibility Review the eligibility criteria and PIU January 2015 Completed inform any TC if they are non- (ongoing) compliant 11 Annex 2: CRIP Action Plan Relevant Recommendation/Action Responsible Due Date Activities Agency 1 Works Revised draft RFP with approved shortlist to PMU/MoWT July 10, 2015 the Bank for no objection 2 Works Revised draft TOR for ESIA to Bank for no PMU/MoWT July 10, 2015 objection 3 Works Draft REOI for ESIA PMU/MoWT July 17, 2015 4 Works Draft RFP for ESIA PMU/MoWT July 31, 2015 5 TA Draft equipment specification and training PMU/MoWT July 17, 2015 plan for MoWT testing laboratory 6 TA Draft training and equipment plan for Road PMU/MoWT TBD Maintenance Unit (RMU) 7 TA Finalize NSDI Charters PMU/MNRA July 2015 8 TA NSDI Interim Report shared with Bank PMU/MNRA July 31, 2015 9 TA Prepare revised proposal for NSDI Systems PMU/MNRA July 10, 2015 Management 10 Staffing Procurement Unit proposal commented on PMU/Bank June 30, 2015 by the Bank 11 CERC Finalize operations manual and submit to PMU June 30, 2015 Bank Annex 2b: Outstanding Action Plan Update from Last Mission (March 2015) Relevant Recommendation/Action Responsible Due Date Status Activities Agency 1 Effectiveness Submit Legal Opinion and PMU End-March Completed Subsidiary Agreement for the IBRD 2015 Loan 2 TA Provide a formal response on the WB March 20, Completed emails from the MoFED and MNRA 2015 on the Land Use TA 3 Staffing Submit recommendation for PMU April 30, Recommended Procurement Officer 2015 candidate identified 4 Staffing Submit TOR for Procurement PIU March 27, Completed Officer 2015 12 Annex 3: List of People Met Belize Social Investment Fund William Lamb Jr. Executive Director Ernest Raymond MDP Project Coordinator Wendel Parham CRIP Project Coordinator Nellie Trench Finance Coordinator Christine Lopez-King Senior Accounts Officer Evan Dakers MDP Social Specialist Deon Barker MDP Engineer Clifford King Local Government Officer Keisha Rodriguez Urban Planning Officer Jorge Espejo Jr. CRIP Engineer Therese Arzu MDP Administrative Assistant Savita Burns CRIP Administrative Assistant Ministry of Finance and Economic Development Yvette Alvarez Sr. Adviser Alma Gomez Supervisor of Insurance Alicia Leslie Financial Analyst Ministry of Works and Transport Irving Thimbriel Senior Executive Engineer Crispin Jeffries Chief Transport Officer Ministry of Natural Resources and Agriculture Gina Young Deputy Lands Commissioner Ingrid Gillett Deputy Lands Commissioner Ministry of Labor, Local Government and National Emergency Management Edmund Zuniga Chief Executive Officer (Acting) Eugene Palacio Director of Local Government Shelton DeFour Director of NEMO (Acting) Town Councils Deputy Mayor, Belmopan Deputy Mayor, Benque Viejo Deputy Mayor, San Ignacio/Santa Elena Mayor, Dangriga Mayor, Punta Gorda Mayor, Orange Walk Town Administrator, Corozal Insurance Industry European Union Pietro Nardi Program Manager 13 Annex 4: Belize Municipal Development Project Implementation Plan Component 1 Phase 2: April 2015 – July 2017 Area(s) Duration Activities Outcomes Comments Designs , Bill of March 23 – Conduct review and provide Final Designs etc. submitted to PIU to incorporate designs and Quantities and April 27, 2015 comments by the PIU for the PIU by the consultant specification in BOD of Procurement Technical submission to Design Consultant packages Specifications and WB for consideration in development of final Designs etc. Invitation to Bid April 27- May PIU preparing of IFB and Bid IFBs and BDs Dependent on approval of BMDP (ITB) and Bid 8,2015 Documents for procurement extension and updated Procurement Plan Documents (BD) packs W20, W23, W24, W25 and ; PIU has the capacity and experience in W26 preparing ITBs and BDs Advertisement May 13-June 25 Advertise IFBs in the Local Media Bids received from Bidders PIU to aggressively pursue the potential 2015 bidders Bid Evaluation and June 26- July Conduct bid evaluation with the Recommended Lowest Bid Evaluation Committee successfully Contract Award 24 , 2015 involvement of Bid Evaluation Evaluated Bidder evaluated NCB bids in the past. Committee using WB Guidelines Mobilization July 27 – Assess contract requirements i.e. Contractor to provide an ‘ on demand August10 2015 Bonds and insurances provided by Bank Guarantee’ for remaining retention the successful bidder payment beyond the TDD projected project extension Execution of August 17 Instruct contractor to proceed with Works executed in compliance Supervision Consultant in place as of Works 2015- July 2016 the works under the supervision of with contract requirements; December 2014 to supervise the the supervision consultant and monthly supervision execution of works and monitor of the reports submitted by defects liability period Supervision Consultant Defects Liability July 2016 – July Monitor corrections to defects Bi monthly Reports submitted Contractor and Supervision Consultant 2017 identified by Supervision Consultant to provide an ‘ on demand Bank Guarantee ‘for remaining retention and supervision payments projected project extension of November 2016 14 ANNEX 5 Belize Caribbean Disaster Risk Financing - Technical Assistance Program Scoping Mission – June 15 – 19, 2015 Aide Memoire I. Introduction 1. The Caribbean Disaster Risk Financing Technical Assistance (DRF-TA) Program aims to support Belize: (i) in assessing the fiscal shocks derived from disasters; (ii) in building institutional and technical capacity in disaster risk financing; and (iii) in assessing current tools and identifying affordable, effective financial protection options based on understanding of the fiscal exposure against disasters (contingent liabilities from disasters). This TA would complement and be aligned with all the ongoing disaster risk management activities such as of the Climate Resilience Infrastructure Project (CRIP). 2. The objective of the mission was to initiate conversation on the DRF-TA in Belize. In particular, the mission aimed to: (i) provide an overview of the Caribbean DRF Technical Assistance Program, and define expected activities, outcomes and timeline to Ministry of Finance; (ii) share preliminary findings from the DRF country diagnostic; and (iii) conduct preliminary discussions with key stakeholders including private sector (insurance industry) and insurance regulator regarding the DRF-TA. The mission noted that the TA is funded by an ACP-EU program through the GFDRR. 3. The mission met with Ms. Yvette Alvarez (Sr. Adviser, MoF), Ms. Alma Gomez (Supervisor of Insurance, MoF), Ms. Alicia Leslie (Financial Analyst, MoF), Mr. Shelton DeFour (Director (Acting), National Emergency Management Organization, NEMO), Mr. Crispin Jeffries (Chief Transport Officer, Ministry of Works and Transport, MoWT), Mr. Pietro Nardi (Program Manager, European Union), and General Managers from the Insurance Companies. The mission expresses appreciation for the kind support extended to the Bank team during the mission. 4. This annex summarizes the findings, recommendations and agreements reached during the mission. II. Overview 5. Overall, the mission noted that there is keen interest from the Government of Belize and from the insurance sector on advancing the DRF-TA engagement. The mission stressed the importance of close collaboration between the MoF and WB to ensure that the results of the TA are useful and that there is capacity building. The mission developed a better understanding of the post-disaster public financial management (PFM) systems as well as the insurance regulatory perspective on the local insurance market and the resilience of the domestic insurance market in Belize. The mission got access to key data on insurance and post-disaster damages and losses for the past ten years. III. Detailed Findings 6. The following is a summary of the key findings: a. Caribbean Catastrophe Risk Insurance Facility (CCRIF). Belize’s annual premium for CCRIF is US$500,000 and is paid by the Government of Belize. The Government decided not to take part in the CCRIF XS rainfall product. From conversations, the team concluded that there is concern, within MoFED, that the current CCRIF profile does not adequately address the public sector liability of Belize. 15 b. Foreign Exchange. The MoFED discussed the impact of disasters on foreign exchange and the implications to the Central Bank and the potential interest in the program also by the Central Bank. c. Contingency fund for disaster response. Given there is no emergency response fund and given the size of the country relatively small population, the Government responds to disasters on an ad hoc basis. d. Centralized Responsibility for Emergency Response. Following a natural disaster, the Government may reallocate budgeted funds or source funds from external donors. These post disaster funds are centrally governed by MoFED with NEMO as coordinating agency. NEMO is chaired by the Prime Minister and comprised of multiple line ministries including the MoFED. e. Emergency Preparedness. Responsibility with preparing for disaster is with NEMO. Currently NEMO’s response mechanisms target Cat 1 and Cat 2 events. More severe events would put significant strain on NEMO’s systems. f. Insurance Pool for Public Assets. There is expressed concern of the challenges in developing an inventory of public assets. There is interest from the local insurance companies in insurance of public assets. g. Agricultural Insurance. The team acknowledged the concerns by the MoFED on the vulnerability of the agricultural sector, but noted that it may not be included in the analysis due to challenges with quantification. h. Chief Risk Officer (CRO). The MoFED expressed the need for a CRO. i. Flow of funds. Total costs for emergency response activities, for each participating line ministry, are shared with NEMO who works with the MoFED to release the funds. j. Tracking of Funds. The Financial Secretary will run a below-the-line account to cover immediate emergency costs following a natural disaster. These funds will be offset from the re-prioritization of national funds as well as donor funds. All expenses have to be verified by NEMO that they were used for legitimate emergency response activities. IV. Agreements 7. Ms. Yvette Alvarez (Sr. Adviser) was identified as the key focal point within Ministry of Finance for the TA engagement with Ms. Alma Gomez (Supervisor of Insurance) support from an Insurance regulatory perspective. The Supervisor of Insurance agreed to work in partnership with the Bank to develop the research assessment of the domestic insurance market as well as to facilitate and collate insurance loss and market information. In addition, the Insurance Supervisor provided Gross Written Premium and aggregated claims information on property lines of business for the last 10 years to the mission. V. Next steps 8. The Insurance Supervisor will share a questionnaire with domestic insurance companies to elicit detailed feedback on insurance of disaster risk and gauge the resilience of general insurance companies. The responses are expected by July 3, 2015. 9. The mission explained that the TA will hire consultants, including a national focal point, to collect and analyze data within the next 3 – 6 months. The stakeholders agreed to provide information to the consultants once engaged. 16 10. The provisional timeline of the TA was agreed upon as follows:  Identification of additional project staff (by September 2015)  Research and analysis on the post-disaster Public Financial Management, Insurance Market and historical impacts of natural disasters with regular discussions with MoFED focal point with completion (by March 2016)  Recommendation for financial protection strategy against (by August 2016)  Review for MoFED (by November 2016)  Publication (by March 2017) 17