78304 LRTF Quarterly Report September 6, 2012 I. LRTF Administration As of July 1, 2012, the LRTF status was as follows: USD million Contributions Received Cash Contributions 149,552,156.80 Investment Income 2,242,481.14 Total Receipts (Note 1) 151,794,645.94 Future Cash Contributions as per signed Administration Approx Agreements (Note 2) 18,651,000.00 Total LRTF Approx. $170,445,645.94 Project Commitments EMUS ($18,400,000.00) URIRP ($9,200,000.00) URIRP II (Additional Financing) ($27,000,000.00) LIBRAMP ($108,900,000.00) Total project commitments ($163,500,000.00) LRTF Administration and Projects Preparation and Supervision Costs LRTF Administration (599,269.92) Total Non-Project Disbursement – Admin Costs (Note 3) (1,465,521.57) EMUS Appraisal and Supervision (839,531.71) URIRP I Supervision (246,795) LIBRAMP Supervision (75,000) Total Costs (3,226,118.20) Available amount for future commitments 3,719,527.74 (Note 1): This amount includes all donor contributions to date plus investment income (US$2,242,481.14). The first tranche of the European Commission (EC) for EUR 30 million (US$39,807,000) and the additional contribution by KfW for EUR 25 million (US$33,110,500 million) were deposited in December 2010. A DFID contribution of GBP 5 million (US$7,850,000) was deposited in December 2011 and the second tranche of the European Commission (EC) for EUR 15 million (US$19,830,000) in January 2012. GBP 1.75 million was received from DfID on May 29th, 2012. 2013-06-11 June 2011 Quarterly Report Page 1 of 8 (Note 2): This amount represents the EUR 15 million pending from the European Commission. (Note 3): This includes the Administration Cost Recovery Fee, as per the Administration Agreements, Annex 2, paragraph 3. 1. Since the June, 2012 OC quarterly meeting, no additional contribution has been made to the LRTF. At present, the LRTF includes total cash contributions (including investment income) of about US $149,552,156.80 million. Total project-level commitments remain at US$163.5 million. The total amount available for future commitments as of July 1, 2012 is US$3,719,527.74. Project Status Reports Emergency Monrovia Urban Sanitation Project (EMUS) 2. Overall the project continues to progress well. No major developments/changes have taken place since the latest report to the OC dated June 2012. The next supervision mission is scheduled to take place the first week of September and overlap with the September, 2012 OC. Following this mission the Results Matrix of the Project will be updated accordingly and the mission Aide Memoire will be shared with the LRTF Donors. 3. Secondary collection has experienced some slow down in August due to a combination of heavy rains, ongoing works on the access road, and frequent breakdowns of equipment of one of the contractors. With regards to the latter, the contractor is reportedly in negotiations with an equipment supplier to augment its vehicle fleet, which is expected to enhance its capacity. The PIU/MCC is monitoring the situation closely. 4. Construction of Whein town cells is completed and has been handed over to MCC. Some works related to the leachate ponds, namely the completion of the reed bed and the reed bed plans, are ongoing. In the meantime, temporary ponds are being used. The abbreviated Resettlement Action Plan (aRAP) has been finalized and approved by the World Bank. It is expected to be disclosed in country shortly. Fencing around the site is being erected. The ponds have also been fenced. 5. The procurement of the PPIAF financed Options Study has been completed. The selected Firm will be on direct contract with the World Bank and is expected to commence work on September 16, 2012. This is a 6-month assignment expected to analyze and recommend options for service financing to GOL, and build a financial model for cost recovery in the sector. The study is also expected to underpin the proposed follow-up Project, as discussed below. 6. At the request of the LRTF, a Concept Note for a follow-up Project has been prepared in May 2012 and shared with the LRTF. Further, at the request of the Government, this Concept Note has been amended to include a project component outside Monrovia and replicate the labor intensive waste collection activities to 3-4 2013-06-11 June 2011 Quarterly Report Page 2 of 8 secondary urban towns. The revised Concept Note has also been shared with the LRTF for discussion. 7. The EMUS Project comes to an end in December, 2013. Should Government and Donors wish to extend the assistance to MCC beyond this date and/or replicate the model outside Monrovia, preparation activities for the new Project need to start in the fall of 2012. This would allow sufficient time to take all necessary actions so that the new Project commences right when EMUS closes. In view of that, the September OC is expected to provide guidance regarding the proposed new project. Urban and Rural Infrastructure Rehabilitation Project (URIRP) 8. LRTFs initial co-financing of US$9.2 million to URIRP I supported rehabilitation of 15 km section of the Buchanan road (Cotton Tree – Bokay Town) at an overall cost of US$9.8 million which was completed– on time (April 2011), with quality and at original contract value and taken over by the Client. 9. URIRP II: LRTF (US $ 27 million) and IDA (US$ 20 million) are financing rehabilitation of the 66.5km Bokay Town - Buchanan road. The project became effective in November, 2010. The works under URIRP II were executed in two contracts as explained in following paragraphs. 10. A 10 km section from Bokay Town towards Buchanan was completed on April 27, 2011 on schedule as an variation to URIRP I Cotton Tree – Bokay Town original contract. The overall cost of the works was revised from US$9.8 million to US$16.5 million. The Defects Liability Period ended in May 2012 and the payment of the retention to the contractor is being processed. The final report for the civil works has also been completed. 11. In response to Government of Liberia desire to quickly proceed with the construction of the remainder of the road to Buchanan port (56.5 kilometers including a new 130 m length Bridge over River Mechlin), the civil work was awarded to CHICO on May 06, 2011 for a price of US$33.76 million on Output and Performance-based Road Contracting (OPRC) format under Limited International Bidding. The completion timeline is June 2013. The contractor has three well functioning site facilities along the route including two site laboratories, two asphalt plants and a concrete batching plant. Photographs of various ongoing field activities are included in Annex B. 12. Since the last report, the physical progress slowed down expectedly due to rainy season. As of July, 2012, , 21.3 kilometers of Bituminous Course, 22 kilometers of Base Course and 26 Kilometers of Sub Base course have been completed. The bridge works including one on River Mechlin are progressing well. The Resettlement Action Plan (RAP) from Compound 1 to Benson River section has been finalized and approved by the Bank on March 5, 2012. Public disclosure of the RAP ended on March 29, 2012 and compensation of affected project affected persons (PAPs) is 90% complete as of end of June 2012. The contractor is finalizing RAP for the remainder section i.e. from Benson 2013-06-11 June 2011 Quarterly Report Page 3 of 8 River to Port of Buchanan. As of end June, 2012, 49% of the work has been completed as against 56% of time. 13. Procurement of the services of a professional consulting firm to provide Technical Support to IIU is progressing, albeit slowly. After a weak response to the EOI, IIU has expanded the coverage of consultants to include other known consultants having the personnel and interest for executing the services. The shortlist is under review in the Bank. Recruitment of this consultant is likely to be completed by November 2012. Meanwhile, GOL has seconded 10 National staff to the IIU to augment its capacity of IIU since end of June, 2012. 14. URIRP 2nd Additional Financing: Implementation of the URIRP has revealed further gaps in the financing. A concept note has therefore been prepared in respect of a second additional financing for URIRP. An amount of US$22.5 million is required to complete the financing of all works under construction or planned under the URIRP including the Fuel Unloading Facility at the Free Port of Monrovia (estimated cost US$11.2 million), construction of the Caldwell Bridge (estimated cost US$9.0 million) and completion of the Bokay town – Buchanan road. Liberia Road Asset Management Project (LIBRAMP) 15. LIBRAMP was approved by the World Bank Board on June 07, 2011 and declared effective on October 13, 2011. It includes US$67.7 million, to be financed from an International Development Association (IDA) credit, and a US$108.91 million grant from the Liberia Reconstruction Trust Fund (LRTF). The government will provide the remaining funding of US$72.8 million. The total project cost is US$249.4 million. 16. Under LIBRAMP, the civil works were divided into two lots: (a) Lot 1 for approximately US$156.5 million for the Red Light - Gbarnga Road (180 km); and (b) Lot 2 for approximately US$54.6 million for Gbarnga - Ganta - Guinea Border (69 km). The package prices were based on engineering estimates of May 2009. 17. The Contract for Lot 1 (about 180 km) has been awarded to CICO (China) and signed on January 25, 2012 for a price of US$166 million. The rehabilitation phase of the contract is for 3 years ending on January 25, 2015. The design report for the first 50km has been submitted to IIU and received at the Bank on August 3, 2012. The design is to be presented in 50km sections and will be completed by the end of the year. The contractor is mobilizing satisfactorily. Physical works are likely to commence at the end of rainy season in September/October 2012. 18. For Lot 2, GOL has decided to rebid the contract and Invitation to bid for Lot has been published on July 16, 2012, after the revisions to the bidding documents. A pre-bid conference was held on August 16, 2012 to clarify issues of concern to bidders in particular questions relating the OPRC concept. Bids are to be received on October 15, 1 US$108.9 is the remainder of the US$140 million approved by May 4, 2010 LRTF OC Decision Meeting and after accounting for the US$27 million used for URIRP II. 2013-06-11 June 2011 Quarterly Report Page 4 of 8 2012. It is anticipated that significant physical works on Lot 2 shall start at the end of rainy season of 2013. 19.The recruitment of a Monitoring Consultant on the civil works is on-going. The RFP has been issued to interested firms, and it is expected that the process will be completed by end of the last quarter. As an interim measure, procurement of the services of a firm to provide short term assistance for review of all the designs and other required documentations from the CE, for a period of about 6 months, during which a qualified firm will be engaged for these services on a permanent basis is underway and is likely to be completed by end August. 19.Task team is also processing the proposed additional financing (AF) of US$50 million for LIBRAMP. This is in response to the Government of Liberia (GOL) request dated January 14, 2012, to finance the anticipated cost increase (due to inflation) for upgrading, rehabilitating and maintaining the original road length from Red Light to Guinea Border, scale up by adding the left out portion of the road from Red Light up to ELWA Junction in Monrovia city, and additional activities for consulting services. The consultancy services focuses on transport plans being developed for different transport modes (Roads, Ports, Air transport, and Railways) and developing an overall Strategic Investment plan. This plan is expected to provide a basis for future investment plans to achieve greater transport efficiency in the Liberia. Negotiations were concluded with GOL on the AF on July 10, 2012. The AF will be presented to the Bank’s Board on September 18th, 2012. II. Next Meetings The proposed dates for OC meetings until the end of CY 12 and for CY 13 are as follows:  Thursday, December 6, 2012  Thursday, April 11, 2013  Thursday, July 11, 2013  Thursday, October 10, 2013 Ad hoc meetings can be called if and as needed. Relevant documents will be circulated two weeks prior to the meetings. 2013-06-11 June 2011 Quarterly Report Page 5 of 8 ANNEX A: Updated Action Matrix – August 24, 2012 LRTF Action Deadline Status Person Responsible Actions Matrix LRTF Quarterly Circulate June LRTF May 2012 Completed LRTF Secretariat Report financial report LRTF Reporting Tutoring session to Several members familiarize donors Ongoing have been trained LRTF Secretariat with Client individually. Other Connection and members will be Donor Portal offered individual training, on request. Update on Budget MoPW will June, 2012 Completed MoPW FY 12/13 introduce two OC meeting allocation separate budget lines: one for road maintenance and another for road rehabilitation TTLs to coordinate Appropriate June 7 2012 Kulwinder Singh Rao, World Bank missions to Liberia arrangements to be Transport TTL, and to coincide with made Kremena Ionkova, TTL LRTF OC Solid Waste, will be meetings present for September 6th meeting. Share Mission Aide Memoires Attach to Minutes of May, 2012 Completed World Bank and Audit Reports LRTF meeting with donors Send EMUS and Transport Concept Deliver to donors and April 15, Completed World Bank Note to Donors OC members and prior to Sept, 2012 Demonstrate cost Effectiveness of Presentation to be June 13, Completed World Bank OPRC made to donors 2012 2013-06-11 June 2011 Quarterly Report Page 6 of 8 ANNEX B: Photographs, Buchanan Road, July 2012 SubBase /Subgrade Preparation Works in Km 58+00 RCC Girder 7, 8 and 9 for Bridge at River Mechlin at Casting Yard Km 44+800 2013-06-11 June 2011 Quarterly Report Page 7 of 8 Grouted Stone Pitching on RCPC Km 68+700 Wearing and Base Course works Km 69+900 2013-06-11 June 2011 Quarterly Report Page 8 of 8