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AIDE MEMOIRE
ETHIOPIA
IMPLEMENTATION SUPPORT MISSION FOR
AFRICA STOCKPILES PROGRAMME – Project 1 (ASP-P1)
– P105711/TF090543
September 26 – 30, 2011
I. INTRODUCTION AND ACKNOWLEDGEMENTS
An implementation support mission of the Ethiopia Africa Stockpiles Programme (ASP)
was conducted in Addis Ababa from September 26 to 30, 2011.1 This mission was the
first after ASP restructuring was approved by the World Bank’s Executive Board of
Directors in June 2011. The mission’s objectives were to i) discuss changes introduced
through the recent ASP restructuring; ii) discuss project implementation progress since
the last supervision mission2; iii) agree on a consolidated Project Work and Procurement
Plans for the remaining project period; iv) assess ways to support the Government of
Ethiopia (GoE) in finalizing the bid process for the disposal contract; v) review progress
in the preparation of the Country Environmental and Social Assessment (CESA) for
safeguarding and removal of obsolete pesticides and the Environmental and Social
Impact Assessment (ESIA) for the construction of a new pesticide store; vi) review the
linkage between ASP and the recently launched Pesticide Risk Reduction Programme;
vii) discuss options to bridge the funding gap for the removal of obsolete pesticides and
associated wastes; and vii) follow up on ASP compliance with fiduciary and safeguard
polices.
The mission wishes to thank the GoE, in particular Ato Fikre Markos (Deputy Director of
the Animal and Plant Health Regulatory Directorate) of the MoA, and Dr Tesfaye Alemu
(Senior Expert, International Financial Institutions Cooperation Directorate, MoFED) for
their full support and cooperation as well as the ASP coordinator Ato Shimelis Hassen
and his Project Management Team (PMT) for excellent mission organization. The
mission wishes to express its gratitude to H.E. State Minister, Wondirad Mandefro, for
his availability during the debriefing meeting and expressing his strong support for ASP.
This Aide Memoire summarizes the main findings and agreements reached during, the
mission.
II. CONTEXT
1 The Mission team consisted of Asferachew Abate (Environmental Specialist and TTL), Gabriele Rechbauer (Senior
Environmental Specialist), Shimelis Woldehawariat (Procurement Specialist), Meron Tadesse (Financial Management
Specialist) and Dawit Tadesse (Team Assistant). 2 The last supervision mission was held from October 15 to 29, 2010 in Addis Ababa.
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Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
2
ASP-Ethiopia was launched in July 2007 with an original closing date of June 30, 2011.
However, after the project launched, a more thorough inventory revealed that 200 tons
more of obsolete pesticides were available. In order to make the originally formulated
PDO achievable, ASP was restructured and the following changes were made:
Original PDO was to “Assist the Federal Democratic Republic of Ethiopia to eliminate
inventoried publicly-held obsolete pesticide stockpiles and associated waste, and
implement measures to reduce and prevent future related risks.”
Revised PDO is to “Assist the Federal Democratic Republic of Ethiopia to eliminate
and/or safeguard inventoried publicly-held obsolete pesticide stockpiles and associated
waste, and develop a strategy for sustainable management of future accumulations.”
The PDO level indicators were revised as follows:
OI 1: Inventoried publicly held obsolete pesticides and associated waste disposed of
and/or safeguarded by the end of the project.
OI 2: A strategy for sustainable management of future accumulation adopted by the
Steering Committee by the end of the Project.
The restructuring has also resulted in a reallocation of proceeds and an extension of the
project’s closing date from June 30, 2011 to December 31, 2012.
III. KEY FINDINGS
Project Implementation Performance: Project implementation has been slow since the
last supervision mission which was conducted in October 2010. One of the most
important reasons attributed to the slow ASP performance was the delay in approving the
Country Environment and Social Assessment (CESA) and Environment and Social
Impact Assessment (ESIA) reports prepared by the project. It was also noted that the
project did not achieve planned activities under the prevention component of the project.
The previous rating of achieving the PDO has been up-graded from Unsatisfactory (U) to
Moderately Satisfactory (MS) - see below for detailed project ratings:
Rating
Progress toward achievement of Project Development Objective (PDO) Moderately Satisfactory (up-graded)
Overall Implementation Performance Moderately Satisfactory
Project Management Moderately Satisfactory
Financial Management Satisfactory (up-graded)
Counterpart Funding Satisfactory
Procurement Unsatisfactory
Monitoring and Evaluation Satisfactory
Public involvement Moderately Satisfactory
Government Commitment Satisfactory
Component A: Inventory Satisfactory
Component B: Safeguarding/Disposal Moderately Satisfactory
Component C: Prevention Moderately Satisfactory
Component D: Project Management Moderately Satisfactory
Compliance with Safeguard Policies Satisfactory
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
3
The mission agreed that the project’s priorities for the remaining fifteen months are: i) the
timely and satisfactory completion of safeguarding and disposal of 450 tons of obsolete
pesticides; ii) the construction of a new pesticide store in the Kality area; and iii) the
development of a sustainable pesticide management strategy as well as initiating
safeguarding of associated wastes (e.g. empty containers). A revised and up-dated work
plan extracted from the detailed project implementation and monitoring and evaluation
plan for the remaining 15 months is attached in Annex 5. A detailed action plan for the
next five months is provided in Annex 1.
The mission has noted that a close follow-up from the PMT and the Bank is needed to
speed-up project implementation and achieve the PDO within the remaining tight project
completion time.
Implementation performance and the mission’s recommendation related to each of the
project’s components are described below:
Component A: Obsolete Pesticides Inventory
Activities under this component were completed. A detailed inventory of publicly held
obsolete pesticides stocks and associated waste carried out, all data were entered into a
database and validated.
Component B: Safeguarding and/or disposal of publicly held obsolete pesticides
stocks and associated waste
CESA submitted to the Bank for non objection: A draft CESA was prepared and sent to
the Bank’s ASP safeguard specialist in February 2011 for comments. The CESA
stipulated that the MoA has the capacity to safeguard medium and low risk pesticides
stores. The CESA includes an EMP for safeguarding obsolete pesticide before disposal.
During this mission, the final CESA has been submitted to ASPEN for final review and
no objection.
Draft bidding document for safeguarding and disposal has been prepared: The bidding
document for the disposal contract – including equipment for safeguarding of 450 tons
and disposal of approximately 300 tons of identified obsolete pesticide stocks- has been
completed. A final draft bidding document was submitted to the Bank for no objection in
April 2011. The bidding document has been reviewed by the Bank’s Procurement
Specialist, ASP technical consultants and FAO/TSU. The mission noted that the bid
document requires safeguarding of the high-risk MoH store to be done by an international
company. Thus, a separate EMP for the high risk MoH store as previously planned by the
PMT is no longer required.
The mission identified the need for the PMT to up-date the final draft bidding document
to: i) reflect the accurate schedule; ii) to amend the amount of obsolete pesticides to be
included (from initial 250 tons to 300 tons based on review of the unit costs and
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
4
reallocated budget available for disposal); and iii) to verify adequacy of safeguarding
equipment needed.
Additional funds are required: The mission confirmed that the project funds are only
sufficient to dispose 300 tons and safeguarding 150 tons of obsolete pesticides. The
funding gap for the disposal of these 150 tons of obsolete pesticides is estimated to be
USD 500,0003. With regard to the safeguarding and disposal of associated waste, the
project budget includes the procurement of a mobile shredder and a generator to shred
empty plastic containers. The current budget only allows for very limited piloting of
actual safeguarding and/or disposal of empty containers. The funding gap for
safeguarding and disposing the 433 tons of associated waste excluding contaminated soils
is roughly estimated at USD 2.4 million. The mission agreed on the need to have a more
detailed cost estimate for the safeguarding and disposal of associated waste. The PMT
took the responsibility to prepare the detailed and updated cost estimate in consultation
with FAO, CLI and other experts on this aspect. Such information should be made
rapidly available to MoFED and MoA as well as to the Bank to assess additional
financing options. The GoE intends to organize a donor roundtable in March 2012 where
the ASP achievements as well as a draft strategic pesticide management framework
including container management and associated funding needs for implementation would
be presented. The Bank was requested to facilitate the preparation of such roundtable.
Three hundred ninety five tons of Obsolete Pesticides removed: The mission noted that the long-
awaited disposal of 395 tons of obsolete pesticides (legacy stocks from predecessor FAO
projects) by a CLI contracted company in the UK. The national safeguard team participated in
refresher training on health and safety4 and safeguarded successfully 75 tons of associated waste.
The safeguarding and transportation operation was monitored by two MoA pesticide inspectors
who received technical training. The Environmental Protection Authority (EPA) was notified and
conducted a two days visit at the Gotera site.
Draft ToR for container management prepared: The PMT submitted the ToR for the
container management study to the Bank for no-objection in April 2011. It was noted that
the ToR require some major revisions to reflect the mission agreements on (i) the
immediate procurement of the plastic shredder; (ii) better alignment with the Pesticide
Risk Reduction Programme (PRRP) container management consultancy (aiming to
regulatory national strategy for the management of empty pesticides containers) and (iii)
including pilots for safeguarding of empty containers in priority locations. The
assignments funded by PRRP and ASP are expected to complement each other to
establish a national system of safe collection of empty pesticide containers and
contaminated equipment, decontamination, recycling and safe final disposal. The mission
agreed to launch the immediate procurement of a mobile shredder and a generator. MoA
agreed to request a related recurrent budget for maintaining and operating the shredder
and generator starting from next fiscal year.
3 Unit cost/ton for safeguarding and disposal estimated at 2,750 EUR including packing material, road transportation to
Djibouti port, and maritime transport to EU facility and disposal. Noteworthy, unit costs in EUR may differ depending
on repackaging needs in addition to variations related to total volume of contract and an average EUR/USD exchange
rate of 1.40 has been used. 4 11 safeguard technicians, 5 drivers and 2 ASP PMT field coordinators
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
5
Component C: Reduction of Obsolete Pesticide and Associated Waste Re-
Accumulation
Draft ESIA for the construction of a new pesticide store has been prepared: A final
draft Environmental and Social Impact Assessment (ESIA) for the construction of a
pesticide store in Kality Area/Addis Ababa for temporary storage of imported pesticides
for migratory pests was sent to the Bank’s safeguard consultant in April 2011. The ESIA
has been submitted to ASPEN for no objection in October 2011. The PMT received the
Bank’s non-objection for recruiting a consultant responsible for the store design review
and supervision process in April 2011. A draft bidding document is available but needs to
be up-dated to match the final ESIA conclusions.
Draft ToR for sustainable pesticide management strategy has been prepared: A draft
ToR for sustainable pesticide management has been developed and submitted to the Bank
for comments and no-objection in January13, 2011. Under the restructuring, the
relevance of such strategy has been emphasized. The ToRs will require further input and
improvement from key stakeholders (i.e. PRRP, MoA, FAO, CLI) to incorporate the
container management strategy to be developed by PRRP and international lessons and
good practices. The mission recommended increasing the budget for the assignment by
shifting the budget allocated for the EIA training.
Communication and awareness - Radio and TV messages as well as print materials (brochures, calendars, etc.) have been
developed in January 2011but have not yet been printed/distributed and/or aired. The
mission urged the PMT to follow-up with the print material consultant to finalize the
contract, print the media support and air the audio and TV messages. This will then
trigger the associated training of stakeholders to use and distribute the media support in
the regions.
- A three-day workshop was organized in May 2011 with 45 participants from
Government, private sector and civil societies to raise awareness on the new
proclamation on pesticide registration and control and to validate related draft
regulations.
Capacity building: - Pesticide management training (funded by CLI) was conducted for 29 crop protection
staff from regional offices and commercial farms in December 2010 and a store
management training (funded by CLI) was conducted for 28 pesticide store keepers in
February 2011.
- A two-weeks safeguarding training was conducted by FAO in South Africa for 4
PMT/MoA staff in December 2010.
- PMT’s financial management officer attended 2 weeks WB Financial Management
training in Malawi in November 2010.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
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- The mission confirmed that the new PRRP/MoA project (FAO, NL/Wageningen) will
focus on strengthening the legal and regulatory framework for pesticide management
by building on ASP achievements and support. PRRP and ASP linkages have been
identified at institutional level (same stakeholders in Steering Committee and national
stakeholder forum) and at thematic /activity level related to legal/regulatory framework
and development of sustainable container and pesticide management strategy. A
coordination mechanism between MoA’s Pesticide Risk Reduction Programme (PRRP)
and ASP is established and functional.
- The mission reassessed the need for keeping the delayed training on EIA in the work plan
and concluded with the MoA that due to past training by FAO, the schedule for
safeguarding and disposal of obsolete pesticides and the role of EPA, it was decided
that the training could be removed from the work and procurement plans. The training
budget will be reallocated to increase the budget for the sustainable pesticide
management strategy consultancy.
Component D: Project Management
Restructuring: - The amendment to the legal agreement signed by the GoE on July 29, 2011.
Reporting and Monitoring: - Two progress reports (covering July – Dec. 2010 and Jan. – July 2011) were submitted to
the Bank.
Procurement: - The procurement plan was up-dated and received no-objection by the Bank in July 2010.
The mission had a discussion with the project staff on the status of implementation of
the procurement aspect of the project. The implementation status of the project for all
procurement packages was also reviewed with the team. The procurement
management of the project is found to be unsatisfactory. Please see Annex 3 for details.
Financial management - The disbursement of the project proceeds as of September 30, 2011 amounts to USD
628,745 (24 % of total grant of USD 2,620,000). It is the conclusion of this assessment
that there is reasonable adequacy that the FM system provided the necessary reasonable
assurance that Bank loan proceeds are being used for the intended purposes (please see
Annex 2 for details). As a result of the supervision, the project’s FM rating is upgraded to
Satisfactory whereas the FM risk of the project remains as Moderate. However, the
following are key areas that need management attention and follow up:
• Improve the current disbursement trends- i.e. from IDA to the Project,
by sending withdrawal applications with SOEs and necessary
documentation as appropriate at least once per month to avoid the
Designated Account being inactive.
• Internal audit units should be requested to submit their reports on the
reviews they conducted on the project so that the project can follow up
on the findings and donors could see the weaknesses noted.
Project management support / TAD:
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
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- The five project management support missions (July 2010 – January 2011, five days
each) provided by an international consultant team funded by the Bank assisted the PMT
in up-dating and refining project management tools as well as finalizing the bidding
document for disposal of obsolete pesticides. The mission noted however that the PMT
would benefit from additional technical and management support. A discussion with CLI
resulted in a general agreement that CLI would fund a Technical Advisor for Disposal
(TAD) for the remaining project implementation period to focus on the disposal process
and compliance monitoring issues. ToRs as well as CVs from existing TADs from other
ASP countries were shared and will be revised before a formal request for direct funding
and contracting will be sent to CLI.
Steering Committee: - The mission urged the PMT to organize the overdue Steering Committee meeting to
present the restructured ASP project and request for approval of the final fifteen month
work plan and procurement. This is expected to enhance project ownership, support and
monitoring by GoE.
Reporting and Monitoring: - The mission reviewed the revised results framework in order to report on progress made
and found that some of the targets had to be refined. The mission notified the PMT that
the next progress report should follow the restructuring results framework (see annex 4).
A comprehensive list of all agreed actions over the next 6 months are in Annex 1. In
addition close follow-up will be maintained by the field based Team Lead for the project.
Next Mission. It was agreed that the next mission would tentatively be held in March
2012.
DISCLOSURE: Under the Bank’s Access to Information Policy introduced on July 1,
2010, the Aide Memoire may be made public, if the client and Bank agree. The Bank and
the GoE confirm their understanding and agreement to publicly disclose this Aide
Mémoire. The disclosure of this Aide Memoire was discussed and agreed with the MoA
represented by His Excellency State Minister Wondirad Mandefro at the wrap-up
meeting held on September 30, 2011, at the MoA, Addis Abeba.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
8
Annexes
Annex 1: Action Plan
Annex 2: Financial Management Review
Annex 3: Procurement Review
Annex 4: Results Framework
Annex 5: Work Plan
Annex 6: Mission Agenda
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
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Annex 1: Action Plan
Action Due Date Responsible
Party
Component A: Inventory
Disclose the CESA through EPA and MoA upon approval
by the Bank.
November 30, 11 PMT/MoA
Component B: Safeguarding/disposal of obsolete pesticides and associated waste
Up-date and finalize Bidding Document for disposal
contract. Informing international hazardous waste
companies of up-coming bid.
November 10, 11 PMT/MoA
Inform MoA Procurement Evaluation Committee and
circulate draft bid document to its members.
November 15, 11 PMT/MoA
Obtain no-objection from the Bank on bidding document. (November
20,11
PMT/MoA
Float bidding document upon approval and disclosure
CESA.
November 25, 11 PMT/MoA
Forward Bid Evaluation Report to the Bank for No-
Objection
February 28, 12 PMT/MoA
Develop EMP for safeguarding low and medium-risk
stores and submit to World Bank for non-objection
(A.Abate) based on the CEA template. Safeguarding with
existing equipment can start upon clearance of EMP.
December 31, 11 PMT/MoA
Revise and submit ToRs for Container Management
Strategy to World Bank (A.Abate) for review and non-
objection
November 10, 11 PMT/MoA
Initiate procurement of international consultant for
Container Management Strategy.
October 31, 11 PMT/MoA
Procure shredder and generator June 30, 11 PMT/MoA
Component C: Reduction of obsolete pesticides and associated waste re-accumulation
Revise and submit ToRs for Sustainable Pesticide November 10, 11 PMT/MoA
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
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Action Due Date Responsible
Party
Management Strategy) to World Bank (A.Abate) for
review and non-objection
Disclose the ESIA for new store through EPA and MoA Nov. 30, 11 PMT/MoA
Recruit consultant for reviewing design of store and
request rapid up-date of draft bid document
November 21, 11 PMT/MoA
Launch tender process for new store Dec. 15, 11 PMT/MoA
Receive print materials from consultant Nov 25,11 PMT
Contract printing press Dec 5,11 MoA
Receive Printed communication materials from printing
press
Jan 15,12 PMT/MoA
Air radio and TV messages February10, 12 PMT/MoA
Component D: Project Management
Submit updated Work Plan and cost-tables for the
remaining 15 months to the World Bank (A. Abate) for
approval
October 31, 11 PMT/MoA
Send monthly up-date on Action Plan and Work Plan to
World Bank for monitoring purpose
End of each
month
PMT/MoA
Submit updated Procurement Plan to the World Bank
(A.Abate and S. Badisso) for approval
October 31, 11 PMT/MoA
Organise a SC meeting (restructuring, revised work plan,
procurement plan, tender processes, roundtable
preparation, etc.)
Dec. 9, 11 PMT/MoA
Develop preparation plan for donor roundtable scheduled
for March 2012 (thematic, institutional and logistical) and
send to Bank for comments.
November 10, 11 PMT/MoA
Revise ToRs for TAD and request TAD contracting from
CLI
October 17, 11 PMT/MoA
Next Project Implementation Support Mission March 12 WB/PMT
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
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Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
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Annex 2: Financial Management Reviews
WORLD BANK
Africa region
Financial Management Supervision Report
Key Information on the Project
Project Name: Africa Stock piles project
Project ID: P105711
IDA Credit/Grant No.: TF 90543
Implementing Agency: Ministry of Agriculture and Rural Development
(MOARD)
Effectiveness Date: July 13 2007
Closing Date: December 31, 2012
Application Deadline: December 31, 2012
Credit/Grant Amount: USD 2,620,000
Program Duration 5 years and 5 months
Remaining Period to
Closing 1 year and a half
Disbursed Amount: USD 628,745.47 up to September 30 , 2011
Cancelled Amount Zero
Period Covered by Review: From the last mission(June 2010 to September 2011)
Previous ISR Rating: MS Current ISR Rating: S
Previous FM Risk Rating: M Current FM Risk
Rating: M
Executive Summary
A financial management review mission was conducted for the above mentioned project
September 29, 2011. The main objective of the mission was to review the project
financial management arrangements whether they continue to be adequate as designed to
give timely reports which reflect project transactions and whether such reports can
reliably be used for project monitoring and to review the action taken by the PMT with
regards to the action plan of last supervision mission. The FM team made its review at
project coordinating unit (PCU) of MOA.
The review focused on assessing the status and adequacy of the project’s financial
management arrangements and compliance with the legal covenants related to financial
management. Some of the aspects considered in this review include budgeting
accounting, internal control, financial reporting, fund flow management and external
audit and selected sample transaction review at the PCU.
It is the conclusion of this assessment that there is reasonable adequacy that the FM
system provided the necessary reasonable assurance that Bank loan proceeds are being
used for the intended purposes. However, the following are key areas that need
management attention and follow up:
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
13
• Improve the current disbursement trends- i.e. from IDA to the Project, by sending
Withdrawal applications with SOEs and necessary documentation as appropriate
at least once per month to avoid the Designated Account being inactive.
• Internal audit units should be requested to submit their reports on the reviews they
conducted on the project so that the project can follow up on the findings and
donors could see the weaknesses noted.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
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ISR FM Rating
On the basis of the issues highlighted, the overall summary rating on the financial
management arrangements of the project is assessed as Satisfactory, which is an
improvement from the previous status of Moderately Satisfactory.
The main reasons underlining the decision made on the rating are the timeliness of the
financial reports and their quality, the audit report being unqualified with only one
weakness of internal control, prompt action on the audit finding and the variance analysis
being conducted on quarterly basis.
The submission of WAs is very discouraging. More than 60% of the budget will be
utilized once the two contracts of obsolete pesticide disposal and store construction are
finalized. Since both contracts are environment sensitive, the finalization of the contract
has so far taken more than a year. The project is advised to submit WAs on monthly basis
even if the amount involved is small.
FM Risk Rating
Following the findings of mission, the Bank team suggests to rate both the Inherent and
Control risks as Moderate as was the case in last mission. The total FM risk rating
therefore will remains as Moderate.
FM Review: Findings and Action Plan 1. Budgeting
The overall EFY 2004 annual budget of the project is prepared and submitted to
MoFED for approval. The amount submitted is Br. 31,166,520. The budgets are
prepared by component and sub-components which are submitted for approval.
We also noted that the PCU prepares and analyses the project performance on a
quarterly basis by sending quarterly progress report to its management and MOA.
This report includes budget utilization and variance analysis. Efforts were also
made to compare budgets with actual expenditures for the purposes of quarterly
FMRs sent to the Bank as well. Therefore we are also satisfied that budget
monitoring/control aspect are well addressed. 2. Accounting
The PCU uses adequate computerized accounting system called peach tree
accounting software to process and journalize the financial transactions. We noted
that transactions were posted to this system as of September 29, 2011.
The PCU has a Finance and Administration officer for the project since
November 5, 2009. The officer has work experience in other Bank financed
projects. The PCU has assigned/recruited an accounting clerk. It was noted that
the Finance and Administration officer got training in November 2010 in Malawi
Institute of Management as was organized by the World Bank. We are pleased to
observe that files of the project are properly and separately kept.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
15
3. Internal Controls
Normal government internal control procedures are in place for the project. In
addition to this, the FM manual covers a wide range of internal control
procedures.
The authorized signatories approve payment vouchers and related documents
before payments are processed. In addition, adequate segregation of duties has
been maintained. There is satisfactory property management and related internal
controls.
Bank reconciliations are prepared on a monthly basis. The latest reconciliation is
for the month ended August 06, 2011.
The internal audit department of MoA has reviewed the documents of the project
in May 2011. Although they have finalized their work, they have not yet issued
their final report. We recommend that the project team should follow up with the
internal audit department to obtain the report. The same should be shared with the
Bank as soon as received.
4. Funds Flow
The mission noted that there were serious delays or lags in disbursement. Since the
project became effective, out of the USD 2.6 million agreed financing, so far only 24%
(USD 628,745.47) has been disbursed to the project, out of which USD 250,000 is an
advance to the designated account. The submission of WA from the project is
unsatisfactory. Only one withdrawal application was sent from January 2011 to date.
The mission was informed that the main reasons that contributed to the lag in
disbursement is the delays in implementation of the project including lag in procurement
process that takes too much time to finalize some of the big procurements. The
restructuring the project has been finalized which is expected to enhance the
implementation of the project. The project should continue to submit WAs frequently so
as to avoid the designated account being inactive.
The Table below depicts the allocated budget versus the disbursement made for the
project so far. The allocation table will change based on the restructuring document.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
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Table depicting the allocated budget, data as of September 30, 2011
Allocated Disbursed Undisbursed
Category Category
Description USD USD USD
Totals 2,620,000.00 628,745.47 1,991,254.53
1 GOODS 550,000.00 59,750.37 490,249.63
2 CIVIL WORKS 310,000.00 0.00 237,627.15
3
CS SERVICES,
AUDITS 320,000.00 82,372.85 304,625.98
4
DISPOSAL
SERVICES 600,000.00 0.00 600,000.00
5 TRG, WKSHPS 140,000.00 53,296.38 86,703.62
6 OP COSTS 620,000.00 183,325.87 436,674.13
7
UNALLOCATED 80,000.00 0.00 80,000.00
DA-#
Designated
Account 0.00 250,000.00 -250,000.00
5. Financial Reporting
The project has submitted FMRs that were reviewed by the Bank’s FMS. We observed
that there are no reportable weaknesses in the FMRs. The timeliness of the reports have
been significantly improved. We would like to remind the project team that the FMR for
the next quarter ending on October 10, 2011 needs to be submitted to the Bank before
November 22, 2011.
6. External Audit.
The project has submitted the audit report for the year ended July 7, 2010. The
audit report was submitted to the Bank with some delay. The auditors’ certificate
contained unqualified (clean) opinions on the financial statements of the project.
The management letter, which is part of the audit report only reported the failure
to stamp payments with “PAID” rubber stamp to avoid duplication of payments
and they recommended the use of such a stamp. The Project accepted this
recommendation and has started using the stamp. Sample transactions were seen
to verify this.
The project accounts for the FY ended July 7, 2011 has been prepared and finalized. The
project has prepared RVP for inviting auditors acceptable to the Bank. we would like to
remind the team that the audit report of the mentioned period needs to be submitted to the
Bank before January 7, 2012.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
17
7. Counter -part Funding
The Borrower’s contribution to the project has continued to flow through appointment of
staff to the project and the payment of staff salaries and benefits (pension, medical bills),
payment of utilities (including communication services (facsimile, internet, and
telephone), water and electricity. The values/costs of these contributions were not
quantified and reported in reports including the FMRs. It is as such recommendation for
the project that the values of these in kind contributions be reflected in reports.
FM Action Plan Previous Action plan
Issues Agreed Actions By Whom Status
1. There are serious
delays in disbursement
• Submit Was on monthly
basis
PCU
Still
disbursement
lags behind.
WAs are not
being sent on
monthly basis.
2. Obtain the internal
audit report
Contact the internal audit
department on their recent
review of the project fr their
report.
PCU/MOA The
department has
reviewed the
project and the
report has not
been submitted
to date.
3. Implementation and
thus budget utilization
is low Monitor project
implementation and usage of
fund for the project
PCU Project
restructuring
finalized. The
two major
contracts are
expected to
move forward.
4. Submit FMR The 4th
quarter FMR should
be submitted
PCU Submitted
5. Submit audit report to
the Bank
The finalized audit report for
the year ended 7 July 2010
should be submitted to the
Bank
PCU
Submitted
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
18
Issues Agreed Actions By Whom Status
New action plan
Issues Agreed Actions By Whom By When
6. There are serious
delays in disbursement • Submit WAs on monthly
basis
PCU
Monthly
7. Obtain the internal
audit report
Contact the internal audit
department on their recent
review of the project fr their
report.
PCU/MOA October 15,
2011
8. Implementation and
thus budget utilization
is low
Monitor project
implementation and usage of
fund for the project
PCU Ongoing
9. Submit FMR The 1st quarter FMR should
be submitted
PCU 22 November
2011
10. Submit audit report to
the Bank
The finalized audit report for
the year ended 7 July 2011
should be submitted to the
Bank
PCU
7 January 2012
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
19
Annex 3: Procurement Review
The procurement management of the African Stockpiles Project was reviewed as part of
the joint supervision and implementation support mission of the Ethiopia Africa
Stockpiles Project (GEF TF090543-ET) from September 26-30, 2011. The mission had
a discussion with the project staff on the status of implementation of the procurement
aspect of the project. The implementation status of the project for all procurement
packages was also reviewed with the team. The procurement management of the project
is found to be unsatisfactory.
Under the updated procurement plan the project has planned for the procurement of
goods, works and consulting services. The status of the implementation of the planned
procurement was reviewed and the findings are provided as follows.
Procurement of Goods: In the updated procurement plan the project has planned to
undertake the procurement of packages of goods which include the supply of
safeguarding equipment and disposal of pesticides, procurement of shredder for plastic
pesticide containers, and printing of outreach materials. Of these the most important
packages are the safeguarding equipment and the disposal of pesticides and disposal
equipment (plastic shredders). These purchases could not be moved since the CESA is
not cleared. The draft bidding document for this particular procurement package was
received in March 2011. Although comments on the draft bidding document were given
by the procurement unit of the country office at the beginning of April 2011 no action has
been taken on the draft bidding document for the safeguarding and disposal of obsolete
pesticides. Although this is the core activity under the project there appears to be no
action being taken by all concerned to clear the CESA and to move the procurement
process of the safeguarding and disposal of the obsolete pesticides.
The mission strongly recommends that appropriate actions should be taken by all
concerned bodies to expedite the procurement processes of the safeguarding and disposal
of pesticides which is important for the attainment of the development objectives of the
project. Moreover, it should be noted that unless appropriate measure is taken
immediately the project is unlikely to complete the disposal of the obsolete pesticides
during the lifetime of the project.
Works: In the updated procurement plan there is only one package of works, i.e., the
construction of a pesticide store. The procurement processes of the pesticide store could
not proceed since it is expected that the design work should incorporate the findings from
the Environmental and Social Impact Assessment Study (ESIA). This is another critical
procurement component of the project and more so which requires more time for
completion. Unless the procurement process for the construction of pesticide store is
given appropriate attention, the design review, the procurement process for the
construction work, and the construction work itself are not likely to be completed within
the lifetime of the project.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
20
Thus the Mission strongly recommends that appropriate actions should be taken to
finalize the ESIA, and to expedite the design review and the procurement process for the
construction of the pesticide store if the construction is to be completed within the life
time of the project.
Consultancy Services: There are about twelve consultancy assignments planned in the
updated procurement plan of the project. Of these PSMS data entry and validation,
preparation of CESA, army worm control and strategy, and hiring of communication
consultant to develop outreach materials are reported to have been completed. Moreover,
the selection and employment of project staff is reported to have been completed except
for the procurement staff of the project. However, the process for the selection of other
consultancy services is not initiated as yet. The initiation of some of the consultancy
assignments, the survey of contaminated containers and selection of appropriate
technology is awaiting the completion approval of the ESIA.
The procurement processes for the consultancy assignments which are provided in the
updated procurement plan have been stalled for the past couple of years or so. The
Mission strongly recommends that some of the issues which are hindering the initiation
of the procurement processes including the completion of ESIA be resolved and actions
taken to initiate and finalize the procurement processes of the planned consultancy
services.
Employment of a procurement officer for the project: The absence of a procurement
staff is one of the reasons for the delay in the implementation of the procurement aspect
of the project. Given the limited time remaining and a number of procurement activities
to be completed the availability of a procurement proficient staff in the project is very
critical for the completion of most of the remaining activities of the project. If the
employment of a procurement staff is not feasible alternative options for expediting the
procurement process have to be sought given the amount of procurement activity to be
carried out during the remaining life time of the project.
Prior Review Thresholds: Upon the review of the prior review thresholds in the Africa
Region all Task Teams were advised to make an amendment to the legal agreement to
reflect the change in prior review thresholds for Goods, Works and Consultancy Services.
It has now been noted that such an amendment to the legal agreement of the African
Stockpiles Project might have not been made for the Ethiopia ASP Project. Under such
circumstances the Mission recommends that either the Task Team Leader should make an
arrangement for an amendment to the legal agreement or the prior review thresholds
which are provided in the financing agreement of the initial project shall apply.
Conclusion:
The planned procurement of goods, works and services under the project have not
moving to date. This is by and large attributed to the completion of two important studies
viz. CESA and ESIA. Since these studies have not been completed the procurement of
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
21
the most critical components of the project has been at a standstill since the effectiveness
of the project.
The procurement of safeguarding equipment and disposal of pesticides, the construction
of pesticide stores, and other critical consultancy services could not be initiated at all
since the foregoing studies are not finalized and cleared by the Bank. The mission
strongly recommends that the CESA and ESIA should be finalized, cleared by the Bank
and give way to the initiation of the procurement processes of goods, works and
consultancy services provided under the project.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
22
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
23
ANNEX 4: Results Framework and Monitoring
ETHIOPIA - AFRICA STOCKPILES PROGRAMME PROJECT P1
Revised Project Development Objective:
Assist the Federal Democratic Republic of Ethiopia to dispose of and/or safeguard inventoried publicly held obsolete pesticide stocks and associated waste, and develop a strategy for
sustainable management of future accumulations.
Cumulative Target Values** PDO Level
Results
Indicators*
Co
re
D=Dropped
C=Continue
N= New
R=Revised
Unit of
Measure Baseline5
Actual through
YR4 YR5
YR6 Frequency Data
Source/Method.
Responsibility
for Data
Collection
Assessment
during mission
09/2011
Indicator One:
Inventoried
publicly held
obsolete
pesticides and
associated waste
disposed of
and/or
safeguarded by
the end of the
project6
X N tons See FN. 0 450 tons of OP
safeguarded/disposed.
Empty container
safeguarded in priority
locations.7
Semi-
annual
Progress reports,
supervision
missions,
disposal
certificate/s
PMU 400 tons of CLI-
legacy OP stocks
safeguarded on
site by national
team and shipped
by international
contractor to the
UK in August
2011.
Indicator Two:
A strategy for
sustainable
management of
future
accumulations
adopted by the
Steering
Committee by the
end of the project.
X
N Qualitative No
strategy
in place
Strategy adopted by
SC8
Semi-
annual
Semi-annual
progress reports,
supervision
missions
PMU
The PMU will
submit the final
draft strategy to
the project SC
which will
adopt it and
include its
decision in the
meeting’s
minutes.
Initial ToRs are
available but need
revision and
alignment with
MoA strategy and
PRRP initiative.
INTERMEDIATE RESULTS
Revised Intermediate Result (Component A): Obsolete pesticide stocks and associated waste prioritized on the basis of risk and available funds
5 Legacy stocks under FAO projects safeguarded and disposed 395 TONS – PMT TO COMPLETE). 6 The final inventory consists of 450 tons of obsolete stocks of pesticides and 343 tons of empty containers and 566 tons of otherassociated waste. 7 Target was refined during this mission (initial Y5 40% and Y6 100%). 8 Target was shifted during this mission to Y6.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
24
Intermediate
Result indicator
One:
Percent of
validated
inventory data
entered into
PSMS
N
Percent 0 100 - - Semi-
annually
Progress reports
and supervision
missions
PMU,
FAO/TSU
Completed.
Intermediate
Result indicator
Two: Approved
CESA available
for use by the
disposal company
N
Qualitative CESA-1
in place
A draft
CESA(CESA-
2) available
CESA
cleared by
the Bank
and
disclosed at
InfoShop
and in-
country
- Semi-
annually
Progress reports
and supervision
missions
PMU / CESA
approved by the
Bank and
disclosed in-
country and in
Infoshop
CESA under final
review.
Revised Intermediate Result (Component B): A final disposal tender and an approved container management strategy
Intermediate
Result indicator
One: A final draft
container
management
strategy
submitted to the
Steering
Committee for
approval
N Qualitative No
strategy
in place
Terms of
reference
available,
consultants
CVs obtained
A final draft strategy
in place and submitted
to the SC for
endorsement9
Semi-
annually
Progress reports
and supervision
missions
PMT/SC
minutes of
decision.
Final ToRs are
available but need
revisions (see
AM).
Revised Intermediate Result (Component C): Reduction of Obsolete Pesticide and Associated Waste Re-Accumulation
Intermediate
Result indicator
One: Two
planned
communication
tools
implemented
N
Number 0 0 1 2 Semi-
annually
Progress reports
and supervision
missions
PMU, ASP
NGO network,
WWF
Radio messages
planned to be
aired during last
quarter Y6.
Intermediate
Result indicator
Two: A final
draft sustainable
management plan
for obsolete
pesticides and
N
Qualitative No plan
in place
Consultative
process started
A final draft strategy
finalized and
submitted to the SC.
Semi-
annually
Progress reports
and supervision
missions
PMU/SC
meeting
minutes.
Initial ToRs are
available but need
revision and
alignment with
MoA strategy and
PRRP initiative.
9 Target was moved during this mission to Y6.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
25
associated wastes
prepared and
submitted to the
SC for
endorsement
Intermediate
Result indicator
Three: A
Pesticide
Registration and
Control
Proclamation
drafted for
submission to
Parliament
N Qualitative None in
place
A Pesticide
Registration
and Control
Proclamation
approved in
Jan. 2010 and
proclaimed by
Parliament in
June 2010.
Workshops
for up-
dating and
merger of
ministerial
directives
into one
regulation
- Semi-
annually
Progress reports PMU/
The PMU will
coordinate the
planned
workshops. The
regulation will
be in a draft
form for
Government’s
future action
Validation WS
conducted in May
2011 with 45
participants.
Completed.
Intermediate
Result indicator
Four:
Availability of
one new storage
warehouse for
pesticide
management
N
Number 0 Design of a
new warehouse
in Kality and
ToRs for
review of
design
- Construction work
completed
End of
project
Completion
report
PMU Draft bid
document
available. SSS
approved for store
design review and
supervision.
Final ESIA sent to
Bank for non-
objection.
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
26
Annex 5: Draft up-dated Workplan October 2011 – December 2012
20
11
20
12
Respo
nsible C
om
pon
ent
C
Act
ivit
y (
A)
Sub-activity (S)
Oct
ob
er
No
vem
ber
Dec
emb
er
Jan
uar
y
Feb
ruar
y
Mar
ch
Ap
ril
May
Jun
e
July
Au
gu
st
Sep
tem
ber
Oct
ob
er
No
vem
ber
Dec
emb
er
Targe
t
compl
etion
dated
ate
Date
comp
leted
Bu
dge
t
A. INVENTORY
AND RISK
ASSESSMENT
A 1. Preparation and
disclosure of CESA
A
Receive approval
10/11
/11
A
CESA disclosure workshop S
20/11
/11
A
Disclosure of CESA S
30/11
/11
B. DISPOSAL AND
SAFEGUARDING
B
2. Procurement of
hazwaste contractor for
ASP stocks
B
Issue tender for disposal S
25/11
/11
B
Evaluate proposals and submit
evaluation report S S
28/02
/12
B
Approval for bid evaluation report S
10/03
/12
B
Award contract S
25/03
/12
B
Contract the hazwaste company/
Signing of contract S
10/04
/12
B Opening of letter of credit S
30/04
/12
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
27
B
Inspection and final acceptance of
safeguarding equipment
S
10/07
/12
B
3. Implementation of
safeguarding of ASP
obsolete pesticides
B
Recruit field technicians and do
refresher safeguarding training S S
15/04
/12
B
Safeguarding of ASP stocks on
site S S S S S S S S
20/10
/12
B
Transportation of safeguarded
stocks to Major Collection Centres
(MCCs)
S
S S S S S S S 25/11
/12
B
Monitoring of safeguarding
operation S S S S S S S
30/11
/12
B 4. Implementation of ASP
export for disposal
B
Notification process for export of
ASP stocks S S S S S S S S S
25/11
/12
B
Transportation of ASP obstocks
for disposal S S S
30/12
/12
B
Monitoring of ASP stocks
operations/transportation to border S S S
30/12
/12
B 5. Container management
options assessment
Revision and submission to Bank
for non-objection of amended ToR
for container mgt consultant
S 30/11
/11
B Contract container mgt consultant S S S S
30/4/
2011
B
Carry out container management
study and report S S S
15/06
/12
B
Workshop to validate container
mgt study S
30/06
/12
Procure Sheredder
30/06
/11
B 6. Soil contamination
survey
B
Carry out soil contamination
assessment S S S S
20/12
/11
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
28
B
Soil contamination data entry and
validation in PSMS S S S 15/01
/12
B
Prepare preliminary soil
assessment report S S
20/02
/12
C. REDUCTION
C 1. Awareness raising
activities
Receive final version of outreach
materials from the consultant S
S
15/12
/11
C
Contract and Print outreach
materials S S
15/01
/12
C
Distribute printed outreach
material S S
15/03
/11
C
Organise trainings on
implementation of comms strategy S S
20/03
/12
Get quotation from ERTA S
15/11
/11
Obtain waiver from WB to recruit
ERTA by SSS S
25/11
/11
Contract with ERTA S
06/12
/11
C
Broadcast outreach messages by
TV/radio S S S S S S S S S S S
31/12
/12
C Hold awareness raising events S S S S
30/11
/12
C
Monitoring the impact of the
outreach material and messages S
S 7/31/
201
C
2. Preparation of a
pesticide management and
sustainability strategy
Get clearance for TOR consultant
to draft pesticide mgt strategy S 15/11
/12
C
Contract consultant to draft
pesticide mgt strategy (incl.
sustainbty)
S S S S 17/03
/12
C
b. Prepare draft pesticide mgt
strategy and sustainability plan S S
15/05
/12
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
29
C
Hold stakeholder workshop to
review the p. mgt strategy +
sustainability plan
S 20/05
/12
C
Finalize pesticide management
strategy S
15/06
/12
C
Obtain approval of the pesticide
management strategy S
15/07
/12
C 3. Constructing a pesticide
store
C
Contract design review and
supervision consultant for store S
28/12
/11
Design review and amending of
bidding document S
15/12
/11
Disclosure of ESIA S S
15/11
/11
C
Tender for construction contract
for pesticide store S S
20/12
/11
Tender evaluation and contract
award S
21/01
/12
Negotiation and Contract signature S
15/02
/12
C Construction of store S S S S S S S S S
30/11
/12
C
Followup Design review,
amending bidding document and
supervision/monitoring of store
construction
S S S S S S S S S S S S 30/12
/12
D. PROJECT
MANAGEMENT
AND
MONITORING
D 1. Review and maintain
management tools
PC D 1
Maintain workplan, gantt chart,
M&E as necessary S S S S S S S S S S S S S S
15/11
/12
PO D 1
Review procurement progress
against Procurement Plan S S S S S S S S S S S S S
16/10
/12
FO D 1
Submit withdrawal application to
the bank S S S S S S S S S S S S S S S
31/12
/12
FO D 1 Maintain accounts using software S S S S S S S S S S S S S S S 30/12
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
30
(Peach Tree) /12
D 2. Facilitate WB
supervision missions
PC D 2
Prepare documents and meeting
programme for missions S S
PC D 2
Review and edit draft aide
memoire S S
D 3. Governance and
management meetings
D 3
Hold donour round table
discussion S
PC D 3
Hold project Steering committee
meeting S S S
PC D 3
Hold PMT meetings to review
progress and plans(monthly) S S S S S S S S S S S S S S S
D 4. Auditing
MoA
RD D 4 Carry out internal auditing S
10/07
/12
PO D 4
Contract external auditor for
2010/11 FY S S
Firm D 4
Carry out external audit for
2010/11 FY S S
D 4
Contract external auditor for
2011/12 FY S S S S
D 4
Carry out external audit for
2011/12 FY S
D 5. Reporting
PC D 5
a. Submit biannual progress reports
to WB S S
15/07
/12
PC D 5
b. Submit quarterly reports to
MoARD S S S S S
10/10
/12
PC/Co
ns D 5
c. Prepare and submit final
counterpart contribution report to
ICR to WB and MoARD
S 20/12
/12
PC/F
O D 5
d. Submit to WB quarterly
Financial Monitoring Reports
(FMR)
S S S S S 10/12
/12
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
31
D 5
Prepare Implementation
Completion Report S S
30/12
/12
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
32
Africa Stockpiles Project-Ethiopia Aide Memoire September 26-30, 2011
33
Annex 6: Mission’s agenda and participants
Implementation Support Mission September 26– 30, 2011
Agenda
TIME TOPIC PARTICIPANTS
Monday , September 26, 2010
09:00 – 10:00 Briefing with Ato Fikre/ Deputy Director APHRD/MoA Asferachew, Ellen, Gabriele and PMU
Implementation performance and work plan
10:00 – 12:00
Meeting with PMU:
o Discuss on progress report since the last supervision
mission conducted in October 2010,
o Review detailed implementation performance
bottlenecks and time bound action plan with
indicators,
o Review implementation performance per component,
Asferachew, Ellen, Gabriele, PMU
12:00 – 13:30 LUNCH
13:30 – 17:00 o Discuss/ assess linkage with MoA – PRRP
o Discuss on the revised cost table/ budget
o Discuss and approve the project’s work plan for the
remaining project period
Asferachew, Ellen, Gabriele and PMU
Tuesday , September 27, 2011
Procurement evaluation
09:00 – 11:00 o Assessment of procurement progress and approval of
updated procurement plan
Asferachew, Shimelis Woldehawariat,
Ellen, Gabriele and PMU
11:00 – 12:00 o Discuss on the way forward on floating disposal and
store construction bid
Asferachew, Shimelis Woldehawariat,
Ellen, Gabriele and PMU
12:00 – 13:30 LUNCH
Safeguards
13:30 – 17:00 o Review safeguarding aspects,
o Discuss the issues related to approval of CESA and
ESIA for new store construction
Bank team / PMU
13:30 – 17:00 o Financial management review Meron T/ Project finance
Wednesday , Sept. 28, 2011 Public Holyday in Ethiopia / Meskel
Thursday , Sept. 29, 2011
09:00 – 10:30 o Discuss on the possibility of finding additional
funding
Bank team / PMU
10:30 – 12:00 o Visit the site for new store (kality) / CLI legacy store/
MoH store
Bank team / PMU
12:00 – 13:30 LUNCH
13:30 – 17:00 PMT and CL-Ethiopia meeting Bank team / PMU
Friday, Sept 30, 2011
Debriefing meetings
09:00 – 10:30 Discuss on the draft Aide Memoire Bank team / PMU
10:30 – 12:00 Debriefing Deputy Director/State Minister of MoA Bank team / PMU
12:00 – 13:00 LUNCH
14:00 – 15:30 Debriefing to MoFED Bank team / PMU
16:00 – 17:00 Debriefing with acting CD Bank team