GAAP Matrix

Issue Risk and Rating Mitigating Actions AlreadyTaken or Included(and Estimated Cost*)B. Sub-projectidentificationand Design1. ULBs that do not fitproject approaches aregiven subloans andgrants for politicalreasons (Moderate)Clear selection criteria havebeen agreed, includingreform commitment,existing financial capacity,audit complianceAdditional Mitigation ActionsProposed, Responsible Agency (andEstimated Cost*)CDMA to apply the criteria and Bankteam to review all selectionsSchedule and Milestonesof GAAP Actions*The criteria clearly agreedand documented bynegotiations2. Design specificationstailored to benefitparticular constituentsor contractorsHire competentindependent consultants,supervised by MSU, toprepare Detailed ProjectReports (DPRs)Consultants hired for independentreview($1.2 million)Public disclosure of DPRsThe consultants andpublic disclosure to be inplace from the projectstart($7.8 million)Detailed technical appraisalof specifications by theEngineer-in-ChiefThe Bank will review at least 50% ofDPRs at least for the first two yearsC. Procurement 1. Collusion amongbidders to seek higherprices, e.g. bidssignificantly higher thanthe ECE; similar namesand addresses ofdifferent bidders; bidsreceived from ‘shell’companies which thenoutsource work to localWide publicity is given innewspapersTender notices published indifferent officesInitially hire consultants to helpmanage the procurement process($450,000);Train ULB, PHED, and MSU staff tomanage procurement, detectevidence of collusion and coercionby bidders as part of the CapacityEnhancement componentPackage contracts to attract national(higher) level bidders;Training of key MSU staffby effectiveness;Broad ULB, PHED, andMSU staff training to beimplemented from year 1