Belize Municipal Development Project (P111928) Supervision Mission - June 9 - 12, 2014 Aide Memoire I. Introduction 1. A World Bank team led by Yoonhee Kim (Team Leader and Sr. Urban Economist) and comprised of Stephen Brushett (Lead Transport Specialist - Consultant) and Keren Charles (Operations Analyst Consultant) conducted a supervision mission from June 9, 2014 to June 12, 2014. Yingwei Wu (Sr. Procurement Specialist) provided support from Washington D.C. via audio. 2. The supervision mission for the BMDP focused on technical components while the safeguards mission is planned for the week of July 21, 2014. Mission activities included: (a) reviewing Phase I & II investments and components; in particular, the mission discussed the Dangriga Market investment; (b) reviewing the progress of the technical assistance programs; (c) following up on issues related to procurement; in particular, the mission discussed key issues and action plans on the quality improvement and capacity building for procurement management; and (d) visiting Phase II investment sites. 3. The mission team held discussions with Ms. Yvonne Hyde (Chief Executive Officer, Ministry of Finance and Economic Development), William Lamb (Executive Director, Belize Social Investment Fund), engineers working on the ongoing Works, consultants working on the Technical Assistance (TA) components and the Project Implementation Unit (PIU). The mission expresses appreciation for the kind support extended to the Bank team during the mission (a detailed list of people met is provided in Annex 2). 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. 5. Key Project Data and Performance Rating Key Performance Rating Previous Current Progress towards achievement of Project Development Objectives Satisfactory Satisfactory Overall Implementation Progress Satisfactory Moderately Satisfactory Disbursed 6.7 million 7.5 million % Disbursed 45% 50% II. Implementation Status Overview 6. Since the last supervision mission, the Project made a progress in project implementation although it experienced some delay in mobilizing the second phase investment. For the Dangriga Market sub-project of Phase I investment, the mission noted that the solid progress is being made with remaining construction and is expected to be completed by end of September, 2014. The mission also noted that the Bank's earlier concerns about the lack of progress in resolving pending settlement issues are being addressed by more proactive follow-up by BSIF with the town council. The Bank team provided further guidance for the next steps to finalize and implement compensation plan (see para 13 for details). The preparation for Phase 2 investments is underway and the procurement process for remaining works 1 contract is expected to commence as early as September, 2014. The mission noted steady progress in all of the TA components and discussed ways to ensure the sustainability of the TA components after the completion. The mission also noted exemplary collaboration and complementarity of the Traffic Management TA with the Caribbean Development Bank (CDB) funded Road Safety Project. 7. The mission was informed that a few town councils fall short of meeting all the eligibility criteria for the second phase investment. The mission discussed that all the eligibility criteria will have to be met before commencing the procurement process of works and this timeline will have to be communicated clearly to the town councils. On the project management side, the mission has provided guidance and support to improve the BSIF's procurement and overall project management/coordination. In particular, the mission highlighted a need to pay attention to the quality of procurement related documents/processes. As of May 31, 2014, the Project has disbursed about US$ 7.5 million, equivalent to approximately 50% of the loan amount. The total amount disbursed and committed is US$ 8.6 million which is about 57% of the total loan. III. Detailed Findings by Component Component 1: Municipal Infrastructure Investments 8. Preparation for the civil works has progressed since the last supervision mission in December 2013, with actual works progressing at the Dangriga Market and Eden Street, Santa Elena. The mission conducted site visits at the Dangriga Market, on Eden Street and in Belmopan. The following section summarizes the key findings. 9. Completion of Phase I Works a. Dangriga market. The mission together with BSIF management and BMDP personnel visited the works on June 9, 2014. Progress was reviewed on site with the consultant and with contractor personnel and subsequently with Mayor Swaso and Dangriga council staff. Construction is moving towards completion by end of September 2014. No significant issues or potential causes of delay have been identified and all areas of work are progressing well. The consultant, however, continues to work on the finalization of the design of the soakaways and grease traps. b. Santa Elena (Eden Street) and Orange Walk (Santa Familia Street) streets. The mission together with BSIF management and BMDP personnel visited Eden Street on June 10. Some delays related to weather and relocation of water pipes have been incurred and there was also a delay caused by the Belize Water services doing works on the project site, though works should still be completed by end July 2014. Further to the mission's suggestion, the consultant will review side drainage and may propose some improvements for consideration by BMDP. Additional traffic calming measures may also be considered. The Santa Familia Street works are at a similar stage and also expected to be completed by end July 2014. 10. Phase II Works a. Almond Boulevard and Chiquibul Street, Belmopan (W18). The mission together with BSIF management and BMDP management visited the works site. The mission also reviewed sub- project files in BMDP. Bids for the works have been evaluated and a contract award has been made. Contract effectiveness and mobilization of the contractor is expected before end June 2 2014. The planned time for implementation is 5 months. No major construction issues are anticipated, although there will be a need to review drainage solutions in view of the terrain. b. Rehabilitation ofExisting Market - Corozal Town (W15), Upgrading of Central Park - Orange Walk Town (W16) and Upgrading of Existing Sport Complex - Corozal Town (W19). The mission was informed that all the bids received were significantly higher than the budget allocated for these packages. For W15, the PIU will send revised scope and bill of quantities by June 27, 2014. In addition, the mission was informed that the revised evaluation report for W16 and W19 will be sent to the Bank by June 20, 2014. c. Preparation of Designs, Technical Specifications and Cost Estimates for the Rehabilitation of Municipal streets in Belmopan, Punta Gorda, Dangriga, Corozal, Orange Walk, Benque Viejo & San Ignacio/Santa Elena (C36). On May 21, 2014, the contract was awarded to BECA International Consultants/ Young's Engineering Consultants. The signed contract will be sent to the Bank by June 20, 2014 and its consultancy is expected to be mobilized in early July 2014 and have a duration of three months with one month overlap with the civil works supervision contract (C37). d. Supervision of Municipal Streets (C37). The RFP and shortlist would be sent to the Bank for information by June 13, 2014 and is scheduled to go out by June 20, 2014. 11. Eligibility Criteria for Phase 2. All municipalities are in compliance with the Phase II eligibility criteria, except for San Ignacio/Santa Elena which has not held its Open Council Meeting and Punta Gorda which does not have a Qualified Accountant. Furthermore, Dangriga Town Council has not been submitting monthly financial reports on a timely basis. It was agreed that the BSIF will inform the Town Councils that all the eligibility criteria will have to be met prior to commencing the bidding process for works contract, which is expected to be in September, 2014 and that Town Councils not in compliance would be excluded in the second phase investment. It was also noted that BSIF will discuss the status of eligibility criteria with the Project Steering Committee (PSC) and seek the PSC's endorsement for the proposed way-forward for the eligibility criteria (e.g by when the TCs will have to meet the criteria). More importantly, the mission discussed possible ways to institutionalize eligibility criteria within the Ministry of Local Government so that the same can be used for its grant transfer program, in addition to the existing subvention formula. The mission plans to meet with the Ministry of Local Government during the following mission (the week of June 16) to initiate this discussion. 12. Counterpart Financing. The mission was informed that all TCCs have paid the required counterpart financing of 1%. The PIU will follow-up with the TCCs on the remaining counterpart financing of the 2% to be paid by the time of advertisement of works in September 2014. Dangriga and Corozal Town Councils have fully paid their 3 % counterpart contributions based on the allocation. 13. Dangriga Market Pending Resettlement Issue. The mission noted that a separate safeguards mission is scheduled for the week of July 21, 2014. It was noted that the mayor counter-proposed compensation plan which entailed continuing to cover utility expenditure and market fee arrears. The mission emphasized that the utility coverage and waiving of market fees will have to be verified with the project-affected people (PAP) individually. In case the utility payments and/or market fees were not effectively waived for the PAPs since July 2012, the compensation plan will then need to address this. In addition, it was noted that the compensation will have to be up until the new market is ready. 14. As for next steps, once the adjustments above have been made, the package needs to be consulted with the PAPs collectively and the PAP should be satisfied with this proposal or propose changes within 3 realistic range. Also the consultation meeting will need to be documented thoroughly including photos and video footage, as well as assistance from Spanish speaker for language. 15. After an agreement has been reached, the BSIF will need to reflect these arrangements in an action plan according to the project's involuntary resettlement policy framework, and submit it for the Bank's no objection by July 4, 2014, revalidate it with the PAPs, publish it on the BSIF website and proceed to implement it. Component 2: Technical Assistance and Capacity Building 16. The mission reviewed and discussed the implementation status of all the technical assistance (TA) programs and highlighted the importance of documenting procedures and successes. The highlights of the TA are outlined below: a. Traffic Management. The mission met with the Ministry of Transport, the CDB funded Road Safety Project and also had a telephone conversation with the consultant Sweroad. The mission commented on the excellent inter-agency collaboration thus far and gave positive mention to the successful municipal level traffic management training carried out as well as to the recently launched Drink-Drive campaign. The mission underlined the importance of managing the completion of the outputs of the consultancy, which would likely require an extension of time beyond end June. The PIU would inform the Bank of the revised timetable by June 27, 2014. The mission underlined the need for BMDP - with the input of the Ministry of Transport - to complete their review of the Traffic Enforcement manual to allow time for Bank review and submission to the consultant to finalize. It was noted that the following remaining deliverables are expected from the consultant: Final Safe Driver manual; and the law and regulation database. The PIU would submit the documents to the Bank for review. b. Physical Asset Maintenance Plan. The mission reviewed the progress of the consultancy which has improved significantly over the past 6 months. The mission also had a telephone conversation with the consultant Hydroplan. The draft council specific maintenance plans have been submitted and are currently under review. The consultant is working on the Excel based management information systems (MIS) for each council and also has to submit a final report, which would require receiving comments from the Bank on the maintenance plans. A further and final extension of time beyond end June will be necessary to support the delivery of all final inputs. The PIU would inform the Bank of the revised timeline by June 27, 2014 and submit the TA output for review by the Bank. c. Municipal Development Plan. The mission noted that the TA continues to implement satisfactorily and participated in the Third National Workshop on June 11, 2014. It was noted that the use of the Local Planning Working Groups (LPWG) was a novel method to engage the TCCs in developing the Development Plans. In addition, the Development Plans include indicators that would be used to identify areas where the TCCs need to strengthen capacity. The consultancy is expected to submit the Final Report on the Municipal Development Planning Process and the final Guidance Manual for Municipal Development Planning in Belize, incorporating comments from stakeholders, following the workshop. The mission discussed the possible extension of closing date for the consultancy in order to allow for Bank review of the documents. The PIU would inform the Bank of the revised timeline by June 27, 2014 and submit the TA output for review by the Bank. Finally, the mission was informed that the Urban Planning Officer will continue to work with municipalities Plans, to support them in adopting the Development Plans, and with the National Land Use Planning Task Force around key central-local issues in urban development. 4 d. Revenue Enhancement. The mission was informed that eight out of the nine Town and City Councils (TCCs) have experienced continued growth in revenues as a result of the revenue enhancement TA. In addition, Belize City just launched the third tranche of their municipal bond and is expected to make payments to bondholders soon. However, it was noted that the TCCs were not prudent in their spending and it was suggested that additional financial management training be offered to the TCCs. The mission stressed the need to institutionalize the financial management training and support within the Ministry of Local Government. e. Communications Strategy. The consultancy ended successfully with a strategy for each TCC for internal and external communications. The main objectives of the strategy were: (i) to improve the knowledge and awareness of the TCCs and their works; (ii) to improve the knowledge and awareness of the BMDP in the municipalities; and (iii) to improve the capacity of the municipal management bodies in their management and implementation of the communications work. The consultancy provided demonstration copies of advertisements for radio and television (CDs) as well as posters on topics such as the importance of paying property tax, and anti-littering respectively. Each of the nine (9) TCCs received three CDs and five thousand posters. Component 3: Project Management 17. Procurement Capacity. The mission reviewed the procurement capacity of the PIU and raised some concerns about the quality of the packages that had recently been submitted to the Bank. It was noted that inconsistencies in documentation, lack of proactive and clear communication, misinterpretation of procurement methods and lack of quality control have resulted in procurement delays. To improve procurement, the mission suggested that the roles with respect to procurement should be clearly defined within PIU staff. In addition, it stressed the need to have technical review of the procurement documents in order to ensure accuracy and improve quality. It advised that in cases where there are procurement issues or questions, the procurement officers should draft the memo to the Bank based on clear facts and quoted principles. The mission also shared a risk matrix to guide the procurement team with evaluations. The matrix is included as Annex 4. 18. Procurement Plan (PP). The mission reviewed the progress of the procurement activities in the PP and it was agreed that the PIU would submit a revised PP for clearance by June 20, 2014. Changes to PP would include updates to the sub-project timelines, updates to packaging and sequencing, and inclusion of actual costs where known. The status of the packages is outlined in Annex 3. IV. Project Restructuring 19. Pursuant to the letter dated May 12, 2014, requesting a reallocation of Loan proceeds, the Bank has started the procedure to respond to this request. During the preparation of the Project, US$800,000 was mobilized through the Project Preparation Facility (PPF) in order to advance preparation activities; however, at the closing of the PPF, US$359,842 was disbursed and US$440,158 remains unallocated. The proposed reallocation will be used to support activities under Category 1 and 3 of the Project. The Bank to provide an update on the Project restructuring by June 20, 2014. 5 Yvonne S. H Yoon e Kim CEO, Ministry o inance and Task Team Leader, World Bank Economic Development 6 Annex la: Action Plan Relevant Recommendation/Action Responsible Due Date Activities Agency 1 Procurement Submit the revised procurement plan for PIU Friday, June 20, 2014 Bank review and clearance 2 Procurement W15: Rehabilitation of Existing Market - PIU Friday, June 27, 2014 Corozal Town: Submit revised scope and bill of quantities 3 Procurement W16: Upgrading of Central Park - PIU Friday, June 20, 2014 Orange Walk Town and W19: Upgrading of Existing Sport Complex - Corozal Town: Submit the revised evaluation report 4 Procurement C36: Send the signed contract to the PIU Friday, June 20, 2014 Bank 5 Procurement C37: Send the RFP to the Bank for PIU Friday, June 13, 2014 information Issue the RFP Friday, June 20, 2014 6 Capacity Schedule a meeting with the Ministry of PIU Wednesday, June 18, Building Local Government and the Bank 2014 7 Dangriga Consult with the PAPs PIU Friday, July 4, 2014 Market 8 TA Inform the Bank of the revised timetable PIU Friday, June 27, 2014 for the TA 9 Restructuring Update the PIU on the status of the WB Friday, June 20, 2014 restructuring 7 Annex 1b: Action Plan Update from Last Mission (December 2013) Relevant Recommendation/Action Responsi Due Date Status Activities ble Agency 1 Dangriga Complete Drawings and BOQ PIU Friday, Completed Market revisions December 13, 2013 2 Dangriga Contact MED and EU for Cost PIU Friday, Completed Market Benefits Analysis in order to December inform Income Restoration 13, 2013 3 Phase II Follow-up with Punta Gorda PIU Friday, On-going Eligibility Town Council on their eligibility December for Phase II 13, 2013 4 Asset Contact the consultant to PIU Wednesday, Completed Management determine a way forward, which December TA will be shared with the Bank 18, 2013 5 M&E Update indicators and determine PHI Wednesday, Completed a metric for BSIF service December delivery 18, 2013 6 Communication Provide a summary document on PIU Friday, Completed Strategy the consultancy for the Bank's December review 13, 2013 7 Follow-up to Propose a way forward for the PIU Friday, Completed Phase I works Eden street sub-project for the December Bank's review and NO 13, 2013 8 FM: Request for Prepare Table with PIU By June 21, Completed reallocation Disbursement Categories for 2013 among Reallocation. disbursement categories 9 Procurement C36: Preparation of Designs, PIU By June 14, Completed Technical Specifications and 2013 Cost Estimates for the Rehabilitation of Municipal streets in Belmopan, Punta Gorda, Dangriga, Corozal, Orange Walk, Benque Viejo & San Ignacio/Santa Elena (LCS): to open. 11 Social Conduct Income Restoration PIU By June 28, Ongoing Safeguards analysis and submit to the Bank. 2013 The new Income Restoration Program will be in effect by August 1st (the original works completion deadline). 12 Social Update the Plan to reflect the PIU By June 28, Ongoing Safeguards new provisions for the first tier 2013 of grievance redress mechanism and the income restoration plan. 8 13 Social Propose a work plan for phase PIU By June 28, Ongoing Safeguards two incorporating lessons 2013 learned covering resettlement, culturally appropriate consultation, accountability/participation, and grievance redress mechanisms. 14 Environmental Ensure that where relevant, PIU By end of Ongoing Safeguards drains are covered with grilles. Phase 1 Project Commissioni ng 17 Environmental Provide details on next available WB By end-July Completed Safeguards Safeguards training workshop for Project engineers (or approve environmental management training courses) 18 Environmental Dangriga Market: Ensure that PIU Timing Ongoing Safeguards installation of soak-aways, dependent on grease traps, and septic tank are construction properly installed, by on-site schedule supervision during the process. Undertake a baseline water quality analysis of the ambient water quality in Dangriga Canal First and upstream. sampling by Install siltation barrier to prevent end-July solid waste in the canal from entering the open sea. Prior to completion of civil works 19 Environmental Future sub-Projects must have a PIU Prior to Ongoing Safeguards - brief EIA (where required by commenceme Phase 2 sub- GoB environmental regulations nt of civil Projects and/or World Bank Ops) and/or works on an EMP checklist prepared and Phase 2 sub- disclosed prior to the start of Projects works. Consultation with local stakeholders on the EIA/EMP must take place and be documented in an annex to the EIA/EMP. 9 Annex 2: List of People Met Belize Social Investment Fund William Lamb Executive Director Ernest Raymond Project Coordinator Nellie Trench Finance Coordinator Christine Lopez-King Senior Accounts Officer Evan Dakers Social Specialist Carolyn Crawford Procurement Specialist Keisha Rodriguez Urban Planner Deon Barker Engineer Clifford King Local Government Officer Andrea Tillett Administrative Assistant Ministry of Finance and Economic Development Yvonne Hyde I CEO Technical Assistance Consultancies Pamela Scott Project Manager, Caribbean Development Bank's Road Safety Project Crispin Jeffries Chief Transport Officer Florian Hamm Project Coordinator, Hydroplan Frank Rogalia Project Manager, Hydroplan Milton Bertin Team Leader, Sweroad Works Consultancies Juan Polanco Consultant, Dangriga Market Carlton Young Consultant, Street Rehabilitation Dangriga Town Councils Gilbert Swaso Mayor Liberato Teul Deputy Mayor Paul Francisco Town Administrator 10 Annex 3: Implementation Review a. Supervision for the Rehabilitation of the Dangriga Town Market (C2-C3 A). The contract with DIEMA Consulting Architect & Associates is ongoing with an expected completion date of September 2014. DIEMA's services were suspended, while a new contractor was selected, and were re-started in April 2014 once the works commenced again. b. Supervision of Municipal Street Rehabilitation of Street Works (C5-10). The contract with TECHNIPLAN is ongoing with the contract scheduled to be completed in June 2014 when the retention for W9 and W 11 are finished. c. Preparation of Designs, Technical Specications and Cost Estimates for Rehabilitation of Municipal Streets (C5-10). The contract with Anthony Thurton & Associates has been completed with some overpayment being inadvertently made; however discussions are underway to determine reimbursements to be made by the consultant. d. Rehabilitation of streets in Benque Viejo, San Ignacio and Punta Gorda Town (W9). The contract with Imer Hernandez Development Company is in the defects liability stage, which will come to an end in June 2014 and all balance due to the contractor will be paid. e. Rehabilitation of Streets in the municipalities Corozal, Orange Walk and Belmopan (W 11). The contract with A & N Construction is in the defects liability stage, which will come to an end in June 2014. f. Completion ofEden Street - San Ignacio (W12). The contract was signed with Imer Hernandez Development Co. However, works are still on-going due to a delay caused by the Belize Water Services doing works on this street and should now be completed by end July 2014. g. Completion of Santa Familia Street - Orange Walk (W13). The contract was signed with De'Mars Stone Company with a completion date of July 2014. h. Preparation of Designs, Technical Specifications, Cost Estimates and Supervision for Structures (Small Works) in Corozal, Orange Walk and Benque Viejo (C32-33). The consultancy with LARS Architects and Associates is expected to be completed by April 2015. i. Preparation of Designs, Technical Specification, Cost Estimates and Supervision of Municipal Streets Rehabilitation (Small Works) in Corozal, Orange Walk, Benque Viejo & San Ignacio/Santa Elena and Belmopan(C34-35). The contract with Young's Engineering Consultancy Limited is ongoing and is expected to be completed in September 2015. All deliverables have been submitted for the design stage and the first monthly report has been submitted for the supervision stage. 11 Annex 4: Procurement Risk Steps in SH (works and goods) Risk/Issues assessed by 1. Prepare BOQ/technical specifications of works or goods. Prepare the Invitation to Quote (ITQ), using BSIF sample format for 2. ITQ and the BOQ/technical specifications (Engineer estimates verified). Prepare the list of Contractors or Suppliers, comprising at least three 3 eligible and qualified Contractors/Suppliers. It is recommendable to solicit quotations from more contractors/suppliers in order to obtain at least three quotations. 4. Appoint committee for evaluation of quotations. 5. Send ITQ to short-listed Contractors /Suppliers. 6. Document any requests for clarification by potential bidders and the _ respective answers. Respond to all potential bidders. 7. Receive quotations until the deadline and file them properly. 8. Open quotations immediately after deadline for submission. Evaluate substantial technical responsiveness and compare quoted prices. 10. Prepare Evaluation Report with the recommendation for award. 11. No negotiation solicited nor allowed before award 12. Finalize the draft Purchase Order including Terms and Conditions of 1 Supply (or Contract) and send to the selected supplier/contractor. 13. Obtain the Confirmation of Receipt of the Purchase Order (or contract). 14. Inform unsuccessful bidders. Publish contract award. 15. Sign the Contract with the supplier/contractor. 16. File all documents for post-review by WB 17. Receive and inspect goods or supervise the works and make payments on invoices as per the purchase order/contract Action plan on BSIF following below principles in similar future processes (June 4-5, 2014): 1. Shopping for works which exceeded the estimates and thresholds of USD$150,000 should be assessed technically. 2. Refer to WB Standard BER Annex I Evaluation Guide 5(e) on evaluating substantial technical responsiveness. 3. No negotiation allowed in any goods or works tendering/shopping. 12 Steps in QCBS/LCS Risk/Issues assessed by Borrower 1. Prepare TOR 2. Prepare RFP (based on the RFP agreed with the Bank under Phase I). 3 Publish Notice on UNDB and in local newspaper(s) and conclude shortlist with approval by WB 4. Obtain the WB "No Objection" to the shortlist and the RFP. 5. Issue RFP to the Shortlisted firms 6. Document any requests for clarification by firms and the respective answers. Respond to all firms. 7. Obtain the WB "No Objection" to Amendment to RFP and/or to any change to the shortlist. 8. Receive proposals by the deadline and register them properly. 9. Open the technical proposal publicly immediately after deadline for submission and keep the financial proposal (FP) in safe. 10. Prepare the minutes of public opening and promptly send it to the WB 11. Evaluate technical proposal using the standard form of evaluation _ report (based on the practice agreed with the Bank under Phase I). 12. Prepare Technical Evaluation Report (based on the practice agreed 1 with the Bank under Phase I) 13. Obtain the WB "No Objection" on the Tech Evaluation Report and 1 the recommendation for opening of FP 14 Prepare the minutes of public opening of FP and Combined ER. Promptly send them to the WB 15. Issue invitation to negotiation to the successful firm. 16. Finalize negotiation and Contract with the successful firm (No change allowed to form of association) Obtain the WB "No Objection" to the contract (based on Minutes of 1 Negotiation including tax implication) 18. Publish the contract award and Inform unsuccessful firms 19. Sign the Contract with the firm. 20. Submit a copy of the signed Contract to the WB and assure 2 appropriate registration of the contract. 21. Receive reports and deliverables, and process payments. Action plan on BSIF following below principles in similar future selections (June 4-5, 2014): Associations between Consultants (WB Consultant Guidelines) 1.13 Consultants may associate with each other in the form of a joint venture or of a sub-consultancy agreement to complement their respective areas of expertise, strengthen the technical responsiveness of their proposals and make available bigger pools of experts, provide better approaches and methodologies, and, in some cases, offer lower prices. Such an association may be for the long term (independent of any particular assignment) or for a specific assignment. If the Borrower employs an association in the form of a joint venture, the association shall appoint one of the firms to represent the association; all members of the joint venture shall sign the contract. All members of the joint venture shall be jointly and severally liable for the entire assignment. Once the short list is finalized, and Requests for Proposals (RFP) are issued, any association in the form ofjoint venture or sub-consultancy among short-listed firms shall be permissible only with the approval of the Borrower. Borrowers shall not require consultants to form associations with any specific firm or group of firms, but may encourage association with qualified national firms. 13 Key staff in relation with form of Association (World Bank Con. Service Manual section 3.4.1) A consultant can engage the services of a sub-consultant with the approval of the Barrower. However since a sub- consultant is not severally & liable responsible for the project (stay or leave) no key staff is permitted as a sub-consultant and as such will not be taken into consideration during the Technical Evaluation. Taxes (RFP See II) 3.7 The Consultant may be subject to local taxes (such as: value added or sales tax, social charges or income taxes on nonresident Foreign Personnel, duties, fees, levies) on amounts payable by the Client under the Contract. The Client will state in the Data Sheet if the Consultant is subject to payment of any local taxes. Any such amounts shall not be included in the Financial Proposal as they will not be evaluated, but they will be discussed at contract negotiations, and applicable amounts will be included in the Contract. 14 qh 唔～州 떽 &O ゲ「 뜀 희「 졀 닉「