to be provided for the PIU may include: equipment; consultant compensation; operating costs; organizational and systems development; training, capacity building; and technical assistance. Project Financing The overall project costs of US$20.37 million (DKK 113 equivalent) will be covered by the Danish Government through a self-standing TF manged by the World Bank. (See detailed cost break-down in Table 2.1) Table 2.1. Overall Project costs1 (DKK million converted in $US million) Description Budget in DKK million Budget in USD million Component 1. Modernization of the Business Environment 19.7 3.55 1.1 Implementing Investment Climate reforms 13.7 2.47 1.2 Enabling institutions for Private Sector Development 6.0 1.08 Component 2. Increasing the competitiveness of selected agricultural value chains 76.3 13.75 2.1 Support to the Maison de l’Entreprise (ME) 10.5 1.9 2.2 Provision of Financial and non-financial business development services 35.0 6.3 2.3 Infrastructure Development 27.5 4.95 2.4 Community Engagement 3.3 0.6 Total for project (C1+C2) 96.0 17.3 Component 3. Project Implementation support* 11.6 2.1 3.1 Support to UGP/PRACC financial management 0.6 0.1 3.2 Technical Assistance 11 2.0 C - WB 5.4 0.97 Fees for TF administration3 2.4 0.44 Supervision 3 0.53 Total 113 20.37 3. Cost recovery fee for TF is 2% * Excluding WB supervision The TF will be implemented through two windows: i) Recipient executed window and, ii) Bank-Executed window. (See Table 2.2) Table 2.2: Overall Project costs by component and Implementation Responsibilities (in US$ million) Components Budget Global Organization Responsible of Implementation A - Recipient Executed Window B - Bank Executed Window Component 1. Modernization of the Business Environment 3.55 2.43 1.12
Corruption and poor governance may affect public sector performance. Continued Bank policy dialogue through the DPO series which includes triggers linked to PFM reforms. A number of institutions to help fight against corruption have been set up and are currently operational. Some of these institutions include: the Procurement Regulatory Agency, the High Commission of Anti-Corruption, and the General Inspection of Government Administration. Entity level: Weak Capacity and high risk of political interference. S Establish and clearly outline the role of the Ministries and institution involved in the implementation of the program activities in the project implementation manual and the manual of procedures and in relevant legal texts. The role of other institutions involved in project activities implementation will also be clarified. Y - Before Disbursements S Project level: a) The activities of the project involving several sectors may entail a delay in implementing the project activities. b) Specific activities under the sharing-costs may lack the necessary capacity. S The Steering committee will ensure a regular monitoring of the project activities. A locally recruited PECEA National Institutional Advisor with the DANIDA competence has been hired under this TF whose experience will be useful in implementing these activities. N S CONTROL RISK S S Budgeting: Low budget execution due to slow process of contracting. S The Steering Committee will review and approve the work plans and annual budgets at the beginning of every year and the financing management staff at UEP and ME will closely monitor the budget execution trough the quarterly consolidated IFRs. N S
The table below summarizes the procurement and selection thresholds applicable to this project 1: Procurement Thresholds No Expenditure Contract Value Threshold**(US$) Procurement Method 1 Works C>=5 000,000 ICB 50,000= <C < 5 000,000 NCB C<50,000 Shopping All values Direct Contracting 2 and Services (other than Consulting Services) C>=500,000 ICB 50,000= <C < 500,000 NCB C<50,000 Shopping All values Direct Contracting 3 Consulting Services Firms C>= 200,000 firms QCBS, QBS < 200,000 firms QCBS, FBS, CQS, LCS All Values Single Source Selection Individual Consultant All values IC All Values Single Source Selection 3 Training, Workshops, Study Tours All Values With the approval of the TTL Procurement review thresholds