RAMP Good Governance FrameworkAs at 14Oct2013
No. / Issue / Action to Mitigate Risk / Responsibility / Target/Monitoring / Implementation Status at Oct 14,2013 and Evidence / Remaining Steps, Target Date & Resources NeededElement 1: Procurement
1.a / Risk of:
- Collusion during bidding process;
- Biased bid evaluation;
- Suppliers/contractors offering informal payments as incentives for favorable treatment.
All civil work contracts awarded / IDA civil works Contracts of year 2-3 are affected by flood. Requests for flood repairs are being prepared and submitted to IDA no later than 28 Oct 2013.
Request for addition work apr. 10 km in AWP-year 4 financed by IDA is being prepared.
ADB/AusAID/OFID
Procurement financed by sources other than IDA, including RGC, the Asian Development Bank (ADB) and the Australian Agency for International Development (AusAID), will not be undertaken through the IPA but by the Ministry of Public Works and Transport (MPWT) itself. / MPWT / Refer to current Procurement Plan for details / All procurement completed
For procurement of IDA financed contracts, the IPA shall prepare bidding documents, call and evaluate bids and recommend award. / IPA / Supervision of IPA by MEF and quarterly review meetings with IDA. / Refer to current Procurement plan for details / All procurement completed
For procurement of IDA financed contracts, the MPWT agencies shall continue to prepare procurement plan, and designs, bills of quantities, and technical specifications for IPA to incorporate in bidding documents. / Technical Research Centre (TRC) in General Department of Public Works (GDPW). / Schedule for production of first year designs agreed at appraisal. / All civil work contracts awarded
Implementation Advisor completed and contract was signed in May 2012 / IA to finalize the Guidelines for RAMP
1.b / Clear procedures and thresholds needed. / IPA to be instructed to follow the Manual on Standard Operating Procedures for Externally Assisted Projects (SOP) including the Externally Assisted Procurement Manual for Goods, Works and Services (PM), mandated by Sub-Decree No. 14 dated February 26, 2007.
The project is adopting the thresholds in the SOP/PM. / MEF. Done through IPA’s terms of reference. / Supervision of IPA by MEF with quarterly review meetings with IDA.
IDA to verify compliance during supervision missions and prior and post reviews of procurement. / IPAis following SOP/FM / completed
1.c / Insufficient procurement capacity of MPWT. / GDPW to engage one qualified and experienced national staff or recruit an individual consultant as Procurement Coordinator for the project, to coordinate procurement activities among MPWT, IPA, MEF, and IDA. The Procurement Coordinator will also provide on-the-job training to procurement practitioners in GDPW. / GDPW to prepare terms of reference (TOR) for national consultant if national staff cannot be engaged and IPA to recruit. / Agree TOR at appraisal. If consultant to be recruited, start recruitment by advance action immediately after negotiations with target of having the consultant in place by June 2008. / Procurement training wasprovided by Roughton Int National capacity development specialist during Oct-Nov 2012
Local Contractors and Consultants had been trained by the RI capacity development specialist in preparation of complying bids and GGF / Ongoing
1.d / Incomplete or delayed Procurement Plans. / Preparation of realistic annual Procurement Plan tied to annual work plan (AWP) and budget. / AWP and Procurement plan prepared by GDPW, Budget prepared by Department of Accounts and Finance (DAF) with oversight of Project Technical Committee (PTC) and approval by ICRRM. / Plan for first 18 months agreed by IDA at appraisal. Preliminary updated plan to be prepared annually in May/June (for initial round of MEF budget preparation) and final updated plan by December. PSC to endorse plan, IDA to monitor. / RAMP is regularly up-dating the approved Procurement plan / Ongoing
1.e / Risk of informal payments by contractors, suppliers and consultants during procurement and contract implementation. / All contractors, suppliers and consultants – firms or individuals, national and international – bidding for contracts under the project shall sign the Declaration on Ethical Conduct and Fraud and Corruption in the SOP/PM. Amend item 5 of the Declaration to read:
In connection with this procurement exercise and any contract that is awarded to us as a result thereof, no payments have been made or will be made by us, our associates, agents, shareholders, partners or their relatives or associates to any of the staff, associates, consultants, employees or relatives of such who are involved with the procurement process, contract implementation, and the issuance of progress payments on behalf of the purchaser, client or employer.” / IPA/GDPW through MEF instruction. / MEF to verify during regular supervision of IPA. / MPWT will ensures compliance in all bids and contracts prepared by them
Issues raised by IDA post-reviews has all been addressed / Completed
Include amended Declaration in all bidding documents, RFPs, and contracts. / IPA/GDPW. / IDA to verify compliance during prior or post reviews. / Declaration included in all bidding documents / Ongoing
2.a / Insufficient financial management capacity. / Proposed FM structure for MPWT Department of Accounts and Finance (DAF) including a senior FM advisor with experience in externally funded projects is assessed as adequate for FM of RAMP, subject to further capacity development. / MPWT to confirm that a senior FM specialist will be made available for FM of RAMP. / Confirm at appraisal. / Significant improvements made to RAMP FM through Component B1 inputs, / Register of ongoing improvements identified for Implementation Advisor FM Specialist to assist with
MPWT to prepare and implement time-bound training programs for DAF staff. / Agree by negotiations and implement by effectiveness. / FM trainings in QuickBooks and other financial skills have been provided to DoAF and other MPWT staffs in Oct – Nov 2012 / ongoing
2.b / Weak internal controls. / Ensure that MPWT/DAF uses SOP and Financial Management Manual (FMM) mandated by Sub-Decree No.14 on February 26, 2007. / GDPW to ensure compliance. / Agree at negotiations and mandate in legal agreement. MEF and IDA to verify use of SOP/FMM during supervision missions. / SFMM approved by IDA, improvements made under Component B1and DAF staff job descriptions updated to improve internal controls / Completed
2.c / Readiness of proprietary accounting software. / MPWT to decide which proprietary software package will be adopted for the project in DAF. MPWT DAF to install. / MPWT DAF. / Agree by appraisal.
Install by October 1, 2008. Correct use to be verified by IDA during quarterly FM supervision missions. / Software upgraded in Oct 2012 with trainings completed in Oct and Nov 2012
QuickBooks application in the DoAF RAMP finance is currently acceptable / Ongoing
2.d / Minimize cash transactions to ensure proper use of funds. / All progress payments to contractors, suppliers and consultants – firms, individuals, national and international – to be made by check or transfer to bank accounts. Retain evidence for audit and supervision missions. / MPWT/GDPW. Internal auditor to monitor and external auditor to report on compliance during annual audit. / MPWT DAF to monitor.
IDA FM staff to verify during FM supervision missions and review of audit reports. / Complying for amounts above US$500, as per SOP/FMM. / Ongoing.
2.e / Delayed or non-existent reconciliation of advances for operating costs and expenses. / Advances of operating expenses to staff or field offices to be reconciled within one week of the end of each month. / GDPW Project Director/Manager and financial officers. / IDA to verify compliance during supervision missions. / Procedures reviewed & revised under Component B1 completed / Completed
No further advances to be paid to staff or field offices until previous advance to those staff or offices is reconciled and cleared against documentary evidence. / GDPW Project Director/ Manager and financial officers. / IDA to verify compliance during supervision missions. / No issues raised in latest mission
2.f / Inconsistency in allowances paid to Government staff attending training, workshops and study tours. / Adopt the agreed action in 3(a) of the November 2007 Joint Country Portfolio Performance Review Action Plan. / MEF to review and propose for ADB/WB concurrence the rates which should be used by RGC staff on ADB/WB projects. / Rates to be agreed by October 2008. Until then, IDA rates may be used for overseas travel. Internal Auditor to monitor and IDA to verify compliance when reviewing SOEs and withdrawal applications. / Ceiling for reimbursement of hotel and per diem is equal to rates paid to IDA staff. / Ongoing.
2.g / Planning of training and workshops and establishment of cost guidelines and rules for reimbursement of expenses (the Project will not fund overseas training and study tours without prior approval of the IDA). / Establish Annual Training and Workshop Plan. The Plan will include training on Safeguards, road management capacity development, contract bidding procedures (for contractors), road safety, project financial management, internal audit and procurement. / GDPW, which shall follow training requirements detailed in the Project Appraisal Document. / Annual Training Plan cleared by IDA in March for review to enable submission to MEF in June (for MEF initial round of budget submissions). / Training planned for RAMP staff on Financial Management and ICT (using new e-Learning Centre) completed in Oct – Nov 2012 / ongoing
The Plan will include details of:
1. Cost estimates.
2. Eligibility rules for attending training and workshops. Attendees must:
- be engaged in work relevant to the training;
- be competent in the language used;
- after completion, report on and share their experiences for the benefit of the project.
- are in line with project aims and objectives;
- meet identified needs within the sub-component plans;
- have budget in line with planned expenditure.
Cost guidelines to be established for selected training/workshop activities:
- venue rental with refreshments/meals;
- sound and projection equipment hire;
- stationery/hand-outs;
- project-specific training and workshop materials;
- simultaneous translators;
- photocopying, reproduction, translation.
SoP training has been provided to selected RAMP staff by MEF on 22-23 Nov 2012 .
RAMP to apply the rates / On-going
Define evidence to be submitted by attendees for reimbursement of expenses, which may include proof of attendance for period claimed with signed statement by the workshop or training organizer. / Working Group to define evidence and include in directive. MPWT/GDPW to ensure compliance. / Directive issued by October 2008. IDA to verify compliance when reviewing SOEs and withdrawal applications. / Being managed in line with SFMM / Ongoing, as training is undertaken
Reimburse against receipts except where covered by fixed allowances in MEF’s letter No. 2000. Evidence of payment to be kept for attendees’ per diem and allowances for audit and IDA supervision missions. / MPWT DAF. / MPWT to monitor and IDA to verify compliance when reviewing SOEs and withdrawal applications. / Being managed in line with SFMM / Ongoing
2.h / MPWT’s internal audit department scope of work does not cover projects. / MPWT will recruit a qualified and experienced audit consultant to train and accredit staff of the internal audit department, develop a project internal audit plan based on the risk enterprise framework model of MPWT, and prepare an internal audit manual for MPWT. / MPWT. / Agree TOR by negotiations. Start recruitment immediately after negotiations, sign contract by July 2008. IDA FM staff to verify consultant’s outputs and outcomes in MPWT.
2.i / Annual external audit. / Adopt new TOR for external audit (agreed MEF/IDA) with greater emphasis on internal controls and appoint auditor. / MEF to confirm that RAMP is included in first audit bundle, now in final stage of preparation. / MEF to confirm that RAMP is included in first audit bundle, now in final stage of preparation. / Forth external audit of RAMP for 2012 Financial Year completed. / The audit report submitted to IDA and ADB in July 2013
2.j / Lack of comprehensive financial management reporting and risk of delay in submission of reports. / Formulate and agree on a template of Interim Financial Reports and frequency of submission. / MPWT/DAF to ensure timely submission of reports. / By appraisal. IDA to verify that FM reports comply with agreed template. / Format of IFR agreed.
IFR Reports being submitted quarterly. / Ongoing
2.k[1] / Adoption of Priority Operation Cost (POC) in the project. (MBPI was canceled by RGC with effect from January 1, 2010) / MEF and MPWT agree that MPWT will adopt the POC of the Government’s Public Financial Management Reform Program. The POC will be implemented according to Sub-Decree No. 66 dated 12 July 2010 / MPWT to draft “Implementation Agreement, POC Scheme ToR, and Management Contract for the approval of CAR/MEF and NoL by IDA / POC Proposal to be signed in Nov 2010. MPWT to verify/monitor that POC is being implemented in accordance with the Sub-Decree No. 66 dated 12 July 2010 and the Implementation Agreement. IDA will provide ongoing oversight. / RAMP POC has been suspended since July 2011
RAMP staffs who continue working in the project are only from RAMP Management team, RDCMU, DoAF, NRSC, TRC and SEU. Others are refusing to perform RAMP assignments citing lack of incentives / completed
3.a / Minimize conflict of interest (CoI) of project staff. / Project staff to disclose private and public affiliations or personal interest before becoming involved in any project related transaction such as contract award. / GDPW Project Director to ask for and retain written disclosure. / IDA to verify compliance during supervision missions /
- Umbrella disclosures in place
- Project level disclosure format in place
- Project level “self-disclosures” sought after EOIs received
- CoI Disclosure file kept with PD.
3.b / Enhance transparency through greater public disclosure of project information. / SEE ANNEX A / GDPW to prepare final list and locations for public inspection of hard copies.
GDPW Project Director to arrange disclosure on MPWT website and hard copies at agreed locations. IPA will disclose procurement information on MEF website. / At least biannually. IDA to verify during supervision missions. / Website structure in place ( updating of information being undertaken by RAMP staff / Ongoing
4.a / Involvement by Civil Society Organizations (CSOs) as observers to increase transparency. / Identify CSOs appropriate to be involved in selected aspects of project implementation. Invite representatives to observe selected events, such as public bid openings and contract signings. / MPWT/GDPW to publicly invite CSOs to joint the events. GDPW to identify in the PIP the generic list of events. / MPWT to provide copy of the dated invitation and the record of the CSOs participating in each specific event. / As agreed local media is invited to contract signings and opening events / completed
All CSO involvement to be recorded in quarterly progress reports. / GDPW to submit. / MPWT and MEF to monitor. IDA to verify through progress reports and supervision missions. / No issues raised in latest period or latest mission / Ongoing
5.a / Need for a formal complaints and remedies mechanism covering all aspects of the project. / Design and build well-defined mechanism into Project as an Annex to this GGF, including sub-procedures specific to particular project components if necessary. / GDPW to draft. / Complete and submit to IDA by end-June 2008. MPWT to monitor and IDA to verify adoption during supervision missions. / Complain Handling Mechanism is in place / Ongoing
Complaints procedures regarding procurement to follow process set out in SOP/PM. / GDPW. / IDA to verify during procurement prior or post reviews. / No issues raised in latest period
6.a / No overall Code of Conduct for civil servants. / Design and adopt code for all project staff, including contracted staff, to sign individually. May incorporate material from Civil Service Code of 1994. / MPWT/GDPW/Department of Human Resources (DHR) to prepare. / Design and furnish copy to IDA by October 2008.
MPWT/DHR to monitor adoption and IDA to verify during supervision missions. / Code of Ethics is on the RAMP website and included in RAMP POC management manual and linked to RAMP POC staff contracts / Ongoing
7.a / Need to reinforce Code of Conduct with sanctions for fraudulent and corrupt activity by project staff, contractors, suppliers and consultants. / Identify, categorize, disseminate and apply to project staff, sanctions available under current Cambodian law and any applicable MPWT regulations. Sanctions against contractors, suppliers and consultants will be those defined in Section 3 of the SOP/PM. / MPWT/GDPW to identify and disseminate with Code of Ethical Conduct. / Define and furnish copy to IDA by October 2008. MPWT to monitor application and IDA to verify during supervision missions. / Staff made aware of requirements as part of engagement process / Ongoing
IDA to apply sanctions available in its general and project-specific legal agreements, including the WB Group’s Anti-Corruption Guidelines and Sanctions Regime introduced in March 2007. For corrupt WB staff, these may include dismissal and referral. Sanctions against unintended recipients of loan/credit/grant proceeds may include:
- letter of reprimand, debarment, conditional non-debarment, debarment with conditional release and restitution;
- ineligibility, either indefinitely or for a period of time, to receive WB loan/grant proceeds or otherwise participate in any WB projects; and
- suspension or cancellation of undisbursed loan amount, or repayment of misused amounts, if a borrower has failed to take timely action to redress fraudulent, corrupt, collusive, coercive or obstructive practices.
8.a / Ensure systematic selection and prioritization of repair and maintenance works. / Ensure that selection and prioritization procedures already agreed with GDPW, including use of the Road Management Decision Support System, are used to develop list of works in AWP. / GDPW with PTC review. / Preliminary AWP to be prepared annually in March for review by IDA and submission to MEF in May/June (for initial round of MEF budget preparation). PSC to endorse plan, IDA to issue NOL to Plan. IDA to verify compliance during supervision missions. / AWPsof year 1-4 were prepared on the basis of available road condition and traffic information with relevant approvals by IDA & ADB/AusAID
Data collection program is continuing. All software and hardware have been delivered, but B2Consultant (Roughton)slowly in mobilization of international RI staffsto re-establish RMDS / Process to be improved once RMDS is functional
8.b / Risk of poor quality of design of maintenance and repair works. / Ensure that approved road design standards and specification developed by GDPW are utilized for design of maintenance and repairs by incorporating design reviews in approval process. / MPWT/TRC with PTC review. / Agreed at appraisal and record in minutes of Negotiations. IDA to verify during supervision missions. / Technical Auditor submitted report. RAMP reviewed and submitted the report to financers in June 2012 / Technical Auditor to be mobilized for the 2nd assignment in quarter 1 of 2013
Recruit experienced design consultant on a timely basis to assist GDPW. / IPA using advance action procedures. / Start recruitment process immediately after Negotiations, sign contract by October 2008.
IDA NOL during recruitment process. / Designs of packages year 1-3 had been developed by WSA
Design for packages year 4 had been developed by Roughton Int. in June 2012
Designs completed
8.c / Risk of low quality construction and supervision. / Recruit experienced construction supervision and consultants to assist GDPW. / IPA with MPWT technical input on TOR. / Agreed at appraisal and to be record in minutes of Negotiations. Start recruitment process immediately after Negotiations, sign contract by time of award of first construction contract.
IDA NOL during recruitment process. / Egis International is performing well as the supervision consultants.
Quality of work is closely monitored and reported monthly. / Ongoing
8.d / Risk of poor quality finished works despite actions under 8.a to 8.c. / Employ an experienced individual consultant to undertake an annual independent technical audit, who will review and assess the scope, location and quality of all activities implemented under the Project, in reference to achievement of the Project Development Objectives and physical outputs. / GDPW to prepare TOR IPA to recruit technical auditor. / IDA NOL by October 2008.
RFP to be issued in July 2008, contract signed by December 2008. / Technical Auditor’s report is being circulated for comments and submitted to Financers in June 2012.
RAMP and Financers to discuss report during the Mission Dec 2012 / to agree on the actions and RAMP to implement the actions
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