LiberiaImplementation Support Mission for the

Emergency Monrovia Urban Sanitation Project

Third Additional Financing (3AF)

Aide MemoireSeptember 28-30, 2016

1. Introduction

An Implementation Support Mission for the Emergency Monrovia Urban Sanitation (EMUS) project under its Third Additional Financing (EMUS 3AF) was carried out between September 28- 30, 2016. Mission members included: Dr. Kwabena Amankwah-Ayeh (Task Team Leader), Komana R. Lubinda (Sr. Procurement Specialist), Saidu Goje (Financial Management Specialist), Sekou Kamara (Environmental Specialist), and Zoe-quoi Diggs Duncan (Team Assistant). This aide memoire (AM) describes key issues discussed and agreed with the Monrovia City Corporation (MCC) and the Government of Liberia.

1.1 Key objectives of the Mission were to:a. Review the progress on the achievement of the Project Development Objective

(PDO) including indicators and intermediary indicators:b. Review and supervise the project financial management, safeguards, procurement,

disbursement and budget and make necessary adjustments and projection to ensure that the project can close properly by December 30, 2016, and

c. Review preparations of studies towards new Cheesemanburg landfill operation and agree on timelines with the Government.

1.2 The mission would like to thank the Monrovia City Corporation and the Project Implementation Unit (PIU) at the MCC for their support. The list of key persons met is attached as Annex 1.

2. Key Focus of the Implementation Support Mission (ISM)

2.1 The Mission largely focused on the EMUS project closure scheduled for December 30, 2016. The project which re-instituted the solid waste management system in Monrovia and its environs after it had collapsed as a result of a protracted period of war has been working with residents, Community Based Enterprises (CBEs) and Small & Medium Enterprises (SMEs) in ensuring that Monrovia is kept clean and green.

2.2 There have been major concerns of communities which host the transfer stations as solid waste collection contractors have failed to honor their obligations in terms of performance stipulated in their contracts. The project from onset divided Monrovia and its environs into two zones (Northern and Southern). The Northern Zone is under the management of CASPIAN while LIBRA Sanitation manages the Southern Zone. The Contractors are in charge, among others, to collect, temporary store and transport solid waste from the two secondary Transfer Stations at Fiamah and Stockton Creek to the Whein Town landfill site. The contractors are also expected to

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keep the cleanliness of the transfer stations in good hygienic condition and ensure that Environmental and Social Safeguards regulations as stipulated in the Environmental and Social Impact Assessment (ESIA), Resettlement Action Plan (RAP) and Environmental Impact Assessment (EIA) reports as agreed to by the World Bank are all adhered to appropriately.

2.3 The Mission reviewed all on-going and proposed activities chargeable to the EMUS project to ensure that the project closes properly. Discussions held with MCC centered on activities to include: Procurement, Financial, Performance, and Plan & Strategies for Next Steps into waste collection and disposal as well as the design & construction of a new landfill site in Cheesemanburg, Montserrado County.

2.4 The mission confirms reports of failing contractors and cleanliness of Monrovia taking a beating. As a result, the solid waste collection and disposal component (1) is downgraded to Moderately Satisfactory. The mission discussed the issues of high rental costs of equipment negatively impacting the ability of Monrovia City Corporation (MCC) to back-stop the failing contractors. The Team’s temporary solution has been to apply funds left over in the project account as a result of bad performance of project contractors to purchase equipment including two frontend loaders, two skip trucks, 15 skip buckets (manufactured in Monrovia) and two monitoring pickup trucks agreed with the Government to ensure that the MCC has access to a minimum set of reliable equipment to be able to handle the solid waste business at the close of the project. This will enhance the financial sustainability of the project.

FINDINGS OF THE MISSION & RECOMMENDATIONS:

3. Project Management:

3.1 In recent months, perhaps up to nearly a year now (Annex 2 shows solid waste collection/contract performance patterns including MCC backstopping), the Transfer Stations managing contractors have not been able to honor the quantity of solid waste carried out of the transfer stations to the landfill site performance criteria they are supposed to have achieved. The underperformance of the contractors has left portions of the city not so clean, not so green and not so hygienic. Emergency garbage collection actions were carried out by the MCC after the Bank approved requests to enable the MCC to backstop the contractors who have failed woefully in their duties. This situation has led to a reputational risk for the project and several articles written in Liberia newspapers enumerating the various failures of the solid waste management systems in Monrovia.

3.2 It has become apparent that contractors assigned to the secondary transfer stations operations cannot handle the responsibilities placed in their care. These lessons need to be taking into consideration when preparing any future solid waste management, Urban and DRM operations in Liberia.

Letters informing GoL and MCC and the Paynesville City Council regarding closing of the project has been delivered to and signed for. MCC has also sent similar letters to all contractors working on EMUS of the closing of the project on December 2016 and thus announced to them of the end of their contracts with the MCC (letters attached as Annex 3).

3.3 It is recommended the Monrovia City Corporation and the Government to double efforts in the management of the solid waste contracts to ensure that the requisite provisions of the

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contracts are fully executed. All allowable penalties for underperformance in the contracts must be applied fairly but firmly and consistently till the closing of the project and the contracts. If not addressed properly, this issue significantly impacts the financial sustainability of the solid waste management business in Liberia.

4. Procurement Management:

3.1 The Project is slated to close on December 31st 2016. Most procurement under project have been undertaken. Prior to the September mission, the Bank had meetings with the PIU during which discussions were focused on the implementation progress from a procurement and disbursement perspective. The procurement plans were reviewed and updated and a remedial Action Plan was developed.

3.2 Progress of implementation of ongoing activities: The mission noted steady progress on implementation of the ongoing procurement activities under the EMUS Project following the development of a Remedial Action Plan in July, 2016 (attached as Annex 4).

3.3 The following activities are ongoing:

I. Works: (i.) Construction of reinforced concrete garbage bins, (ii.) Backfilling and construction of skip locations (iii.) Construction of Access Road to new landfill at Cheesemanburg (iv.) Rehabilitation of two (2) transfer stations (Fiamah & Stockton Creek) to include Roads leading to the main streets.

II. Goods: (i) Supply and delivery of 2 tipper trucks and 2 skip tracks, (ii) Fabrication of skip buckets; and

III. Consulting Services: (i.) Consulting services to carry out Environmental and Social Impact Assessment (ESIA), (ii.) Consulting Services to carry out Resettlement Action Plan (RAP) (iii.) Consulting Services to carry out Financial Audit, (iv.) Consulting Services to carry out monitoring and testing of underground water. Concerted effort is required to ensure that all activities are completed by the project closing date. And that all contractual obligations are fulfilled as only payments for invoices received on or before the project closing date may be made within 4 months after the project closing date. The Bank will continue to provide handholding support to ensure that the remaining activities are completed and to ensure 100% disbursement before the Project closing date of December 31, 2016 (Annex 5 reports on the Status of Procurement Activities Update).

Procurement risk rating: Based on the progress made in implementing the Remedial Action Plan, the Procurement Risk rating for this mission has continued to be rated as Moderately Satisfactory (MS). The same rating is included in the ISR.

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4.1 The third additional financing 3AF of the EMUS project was effective on April 1, 2016 and it will close on December 31, 2016. The project management has been complying with the financing covenant for the submission of acceptable IFRs to the Bank. The audited financial statement for the year end June 30, 2016, extended to December 30, 2016, is yet to be due. The 15 month audited financial statements for the period end December 31, 2016, due on or before June 30, 2017, is expected to be submitted in a timely manner. The project is about 45% disbursed, leaving about 55% to be disbursed for the remaining 3 months of the project life (Annex 6 reports on Project Financial Management Update). Of the 55% funds remaining, actions by MCC has led to the commitment of all bit about 5% of the funds. Works, services and goods are under procurement and disbursement processes. Mission reminded MCC of the need for all SOEs to be submitted to the Bank as per above.

4.2 The mission noted that there was the challenges in the establishment of the Letter of Credit (LC) by the project, the LC being the choice financing the procurement of trucks. The challenge has was addressed just after the end of the mission and this is expected to fast track implementation and the disbursements for the project. The project management is advised to ensure the delivery by contractors for all Works, Goods and Services on or before December 30, 2016 in order for the expenses to be eligible for financing under the project. Thereafter, invoices can be submitted even after the closing date and the expenses defrayed within the application deadline of April 30, 2017. Financial management risk rating is hereby stipulated as Satisfactory and included in the ISR.

5. Environmental Safeguards:

In support of this mission, an environmental supervision site visit was undertaken on September 20, 2016, to EMUS project sites including the Whein Town Landfill and the two secondary transfer stations (SWTS) at Fiamah and Stockton Creek. The main findings of the site visit are outlined below. Overall, the environmental safeguards rating of the project is moderately satisfactory.

Secondary Wastes Transfer Stations5.1 Leachate management: The SWTS had been designed in way that separates contaminated liquid from wastes (leachate) from stormwater. The current wastes handling practices at the sites do not permit this. Leachate and stormwater are not being separated and are being released directly into stormwater drainage channels that are not connected to any sewer system. This deviation has the potential to contaminate water resources as well as pose health hazards to communities around the stations. To rectify this deviation, MCC should ensure that contractors discontinued wastes handling in the sloped area of the surface beds or concrete paving which is designed to direct stormwater away from the waste body into stormwater drainage channels. Sump grates in the work areas that collect and discharge leachate into existing sewer structures should be regularly maintained.

5.2 Waste storage and handling: Wastes storage and handling are restricted to the areas of the transfer stations, designed to prevent moisture from entering the wastes as well as prevent surface and ground water pollution. This is not being adhered to. At Fiamah, for instance, stockpile of wastes was found dumped outside the designated storage area, as well as outside of the facility perimeter fencing. An aggrieved group of Fiamah Community residents wrote a letter

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to the Bank on the challenges they faced around the Transfer Station (attached as Annex 7). These issues cast a complete doubt on the seriousness of the contractor to managing the transfer site per the conditions of the signed contract on which basis the contractor operates the transfer station. To rectify this non-conformance, MCC should instruct the contract to immediately remove wastes dumped outside the site perimeter as well as warn contractor against recurrence of deviation. Repeated deviations or failure to correct a deviation constitute breach of the project environmental-related contractual requirements. Contractors should be penalized in accordance with relevant contractual provisions.

5.3 Occupational health and safety: None of the sites has health and safety protocol in place. The sites do not have first aid station and qualified first aider. At Fiamah, for instance, basic personal protective equipment (PPE) such as nose mask was not available. It exposes workers to health and occupational risks and is not acceptable to the World Bank.

Whein Town Landfill5.4 The environmental supervision visit at the landfill was concerned with leachate and water quality monitoring issues. The EISA recommends comprehensive surface water, groundwater, and leachate sampling program during operation and post-closure phases, targeting several physical, chemical, and biological parameters.

5.5 Ground and surface water monitoring: EMUS team confirmed that sampling and monitoring of boreholes and surface water resources had been discontinued since 2013, contrary to the water quality monitoring requirements in the ESIA. Analysis of water resources at the landfill is strongly recommended before project closure in December. Parameters to be analyzed are already identified in the ESIA report. Post-closure water quality analysis plan should also be developed to assure the Bank that sampling and analysis of water resources will be continued when the site closes in a few years as required by the ESIA. The mission strongly recommends to MMC/GoL to have this post-closure water quality analysis plan in place before project closure in December.

5.6 Monitoring and management of leachate pond: The team could not confirm during the visit whether periodic testing of effluent from leachate ponds is being conducted as required. The landfill management contractor did not have qualified personnel onsite to respond to inquiries. The EMUS team could not also confirm if the leachate ponds were being managed in line with the ESIA requirements. In view of these uncertainty, the mission recommends that the most recent effluent analysis result be submitted to the Bank by October 30, 2016 and reviewed by the project team in order to establish whether effluent testing requirement has been met.

6. Project Management & Operations( Next Step-Collection, Disposal & Cheesemanburg)

The following NEXT STEP actions were agreed with the Government

No. DESCRIPTION Due date Agency Responsible

Comments

It is recommended that contract management must be more stringent in the remaining months. Terms and conditions outlined in contract document must be

On-going starting immediately

MCC/GoL

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straightly adhered to ensure efficiency as well as improve performance. It was agreed that poor performance should attract penalties or finesAccess roads leading to the two (2) transfer stations be rehabilitated as well as increase the height of the perimeter/border wall of Fiamah station by at least 2 meters

December 15, 2016

MCC

Well-certified test of underground water at the Wheintown landfill be conducted to determine existing water condition against baseline results. The landfill site management contractor be made to conduct all required environmental tests as stipulated in contract document.

November 20, 2016

Supervised and reported by MCC

Weekly activity status report be compiled and shared with the Bank for preventive actions/decision-making purposes. Agreed that monitoring of activities will be regularly done utilizing Microsoft Project and the assistance of the Ministry of Public Works

Weekly, starting on October 3, 2016

MCC

Contract for the construction of access road to the proposed new landfill site in Cheesemanburg is signed by October 3, 2016 to avoid delay in road construction work. The Deputy Minister for Technical Services at the Ministry of Public Works has assured full completion of work by December 15, 2016.

October 30, 2016

MCC Submit evidence immediately to World Bank Office in Monrovia.

Report/plan of the ongoing Resettle Action Plan (RAP) exercise at Cheesemanburg to be validated with affected communities in order to authenticate recommended processes and understanding of the locals.

October 30, 2016

MCC

Officially communicate end-of-project date and expected actions to the Government of Liberia (Ministry of Finance & Development Planning), the Monrovia City Corporation (MCC), and the Paynesville City Corporation (PCC). MCC to write to all Contractors working on EMUS on the closing of the project-attach copy of letter received from the Bank.

October 14, 2016

MCC Letters already submitted (Annex 8)

Vulnerable skip bucket locations that are being back filled must have concrete slabs constructed there (about 10 locations) to

December 15, 2016

MCC

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ensure durability of the sites.MCC and PCC to be informed by a letter from the Bank to be ready to take charge of collection and disposal of waste within their respective city lines/limits beginning January 1, 2017.

October 12, 2016

World Bank. Already sent out

Government of Liberia to officially communicate with IDA to seek support for the design and construction of a new landfill site at Cheesemanburg to include: Solid Waste, Liquid Waste, Medical Waste, and Hazardous Waste such as Asbestos. Recycling will constitute a major component of the new project as a way of increasing the lifespan of the new landfill site.

October 20, 2016

GoLMCC to coordinate

MCC/GoL to advice on possible sites for two new transfer stations as Cheesemanburg landfill gets constructed. Fiamah transfer station to be closed at a future date.

November 15, 2016

For all outstanding proposed services, works and goods, PIU to update and submit final procurement request for No Objection

October 3, 2016

MCC Completed

MCC was reminded to avoid problems at the closing of the project with regards to submission of invoices. Timelines were agreed for all submission of invoices (Para 4.1)

April 30, 2017

MCC/PFMU

Sampling and analysis of surface and ground water resources at the landfill should be conducted at an accredited lab at least once before project closure in December

December 15, 2016

MCC

Plan for post-closure monitoring of boreholes and surface water resources at the landfill should be developed before project closure in December

December 15, 2016

MCC

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ANNEX 1: List of Key Personnel Met

No Name Position Organization

1 Clara Doe Mvogo Mayor MCC

2 Roderick G. Smith Program Manager PIU/EMUS- MCC

3 Tolbert A. Kerkulah Env. & OD Consultant PIU/EMUS- MCC

4 Edwin D. Johnson Procurement Specialist PIU/EMUS- MCC

5 Molly B. Zinnah Account Consultant PIU/EMUS- MCC

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ANNEX 2: Tonnage Update (As reported by PIU)

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ANNEX 3: End-of-Contract Reminder Letter to Collection Contractors

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ANNEX 4: Remedial Action Plan (Consultancy, Works & Goods)

No Description of Activity

Type of Activity

Method Estimated Budgeted in USD

Actual in USD

Planed date for contract signature

Actual date contract signed

Status Planned Contract Completion date

A Consultancy 1 Environmental &

Social Impact Assessment (ESIA )

Consultancy SSS 100,000 167,190.00 18-Sept-16 23-Sep-16 Contract Implementation 15-Dec-16

2 Resettlement Action Plan(RAP)

Consultancy IC 16,000 19,500.00 18-Sept-16 22-Sep-16 Contract Implementation 30-Nov-16

3 Financial Audit

Consultancy IC 10,000.00 18-Sept-16 TOR 30-Dec-16

4 Monitoring & Testing of Underground Water

Consultancy SSS TBD 15-0CT-16 Justification for SSS 30- Nov-16

B Works 5 Construction of

Reinforced Concrete Garbage Bins

Works Shopping 250,000 245,975.00 6-Sept-16 16-Sep-16 Contract Implementation

20-N0v-16

6 Construction of Access Road

Works Shopping 150,000.00 199,936.99 11-Sept-16 5-Oct-16 Bid Evaluation and Contract signature

30-Nov-16

7 Backfilling of - 10 Skip Locations

Works Shopping 50,000 51,200.00 11-Sep-16 1-Sept-16 Contract Implementation 30-Oct-16

8 Rehab. 2 Transfer Stations & road leading to the main streets

Works SSS 145,000.00 25-Oct-16 BOQ developed ; Selection of contractor

15-Dec-16

C Goods 9 Procurement of

2Tipper Trucks Goods Shopping 500,000 249,600.00 7-Sep-16 6-Sep-16 Contract Implementation 15-Nov-16

10 Fabrication of - 16 Skip Buckets

Goods Shopping 50,000 50,000.00 7- Sept-16 1-Sept-16 Contract Implementation 30-Sep-16

11 Procurement of 2 skip trucks & 2 Front end loader

Goods Shopping 500,000.00 490,078.00 10-July-16 19-July-16 Contract implementation 18-Sept-16

ANNEX 5: Status of Procurement Activities (As reported by PIU)

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ANNEX 6: Project Financial Management Update (As reported by PIU)

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Program Activities Update- EMUS

Activity Status Proposed Amount(USD)

Actual Contract

Value(USD)

Estimated Date of Completion

Environmental Social Impact Assessment (ESIA)

Contract Awarded to EARTTIME, Inc.

Assessment ongoing.

100.000 167.190,000 November 10, 2016

Access Road to Proposed Landfill

Evaluation ongoing with Public Works

150,000 To be determined

December 20,2016

Construction of Reinforced Concrete Bins

Contract Awarded to FP signed and

released to potential bidders.

250,000 245,975.60 December 10,2016

Purchase of Equipment ( 4 tipper Trucks and 2 Skip

Truck)

Letter of Credit finalized and sent. Initial Payment for

shipment made.

500,000 + 500,000

490,075 +249,000

December 10, 2016

Fabrication of Skip Buckets

Contract for fabrication of 15 skip

bucket signed and awarded to Lee

Group, Inc.

50,000 50,000 October 30,2016

Backfilling of Skip Locations

Contract for the backfilling of

depressed skip locations signed and awarded to GJ, Inc.

50,000 60,000 October 30,2016

Resettlement Action Plan ( (RAP)

Contract Awarded to Consultant

16,000 19,500 November 30,2016

Financial Audit ToR to be submitted for clearing

10,000 NIL December 15, 2016

Ground Water Testing

Firm to be identified for single sourcing

20,000 NIL December 15, 2016

ANNEX 7: Letter from Fiamah Community to IDA

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ANNEX 8: End-of-Project Letter from IDA to Government of Liberia

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