8144188944

4.9 Reyiew by IDA. IDA-flnanced contracts for works and goods above a threshold of US$200,000 equivalent would be subject to IDA's prior review procedures. The review process would cover 86% of tbe total value of the amount contracted for goods and 45% of the amount contracted for civil works. Selective post-review of awarded contracts below the threshold level would apply to about one of fbur contracts. Faso Baara's contract awards will be reviewed by its auditors. The Govemment agreed, durlng negotiatlons, to use the Bank‘s standard bidding documents.

4.10 Consultant and other seryices. Speciallst consultant services fmanced by IDA (US$ 3.5 million equiva!ent) would be contracted in accordance with the Bank's Guidelines for the Use of Consultants (August 1981). Services to be contracted include local and International consultancy seryices, training seryices, IEC specialist seryices, architectural seryices and construction supervision, and procurement and financial auditing seryices. Faso Barra's construction management seryices (no. to exceed US$0.4 million equivalent) would be procured through a sole source contract, because contracts with foreign firms would be morę expensive and there are no other local firms with similar contract management expertise. Prior IDA review would not apply to contracts with firms estimated to cost less than US$75,000 equivalent and contracts with individuals estimated to cost less than US$30,000 equivalent. However, this exception would not apply to the terms of reference for such contracts, single source hiring of firms, assignments of critical naturę as determined by IDA, and to amendments of contracts raising the contract value to US$75,000 equivalent or morę for firms and US$30,000 or morę for individuals, respectiyely.

4.11 Procurement statusjrf ongoing proiects and nroposed arrangements. Disbursements under

the ongoing FHP (PDSS) were on Schedule. Construction works by local contractors are delayed by cumbersome administrative procedures and weak management capacity, particularly for medium and smali works. Under the proposed project, Faso Baara would be responsible for contract management of all construction and/or rehabilitation works. The PCU would be responsible for all other procurement with support frorn consultants when necessary (para. 4.2). The PCU would promptly report bid evaluation and contract award Information and review procurement progress in biannual reports, including an updated procurement plan and timetable, to IDA (para. 4.3).

E. Disbursements

4.12 The project is expected to be completed over a four and a half-year period, with the IDA Credit disbursed over five fiscal years, according to the categories shown in Table 3. The estimated disbursement profile is shown in Annex 4.4. Disbursement of the credit would be fully documented except for expenditures valued less than US$20,000 equivalent which would be madę against Statements of Expenditures (SOEs). Documentation for withdrawals under SOEs would be retained at the PCU for review by IDA supervision missions and for semiannual audits. To facilitate disbursement, the Govemment would open a Special Account (SA) in a commercial bank to cover EDA's share of eligible expenditures managed by the PCU. The authorized allocation for the Special Account would be US$250,000. IDA would make an initial deposit of that amount from the propc ' Credit upon credit effectiyeness and would replenish the SA upon receipt of satisfactory proof of incurred eligible expenditures. Replenishment requests would be accompamed by up-to-date bank statements and reconciliations of the SA. Applications for direct payments and reimbursements or requests for special commitments would apply for contracts above US$20,000 equivalent.

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