Bank OP 8.00 Case Study # 1

NGO hired to implement a project component Project component: Project component: –Rehabilitation and construction of boreholes and water distribution systems to meet emergency needs of remotely located communities and returning populations in a postwar state –Tasks: Management of the component and execution of the works and hygiene education –Duration: 1.5 years

Selection of NGO Selected on SSS basis: Selected on SSS basis: –Emergency needs for access to clean water sources –Sole qualified entity active in the country –Already mobilized in the country and implementing a similar program financed by other donor –With proven record of performance

Contract form –Lump-sum contract form of SRFP –Payments made against defined milestones of achieved progress of the works –List of drillers (subcontractors) pre-selected on the basis of their presence in the project areas, availability of equipment, performance records, etc. –Bank reviewed subcontract form and incorporated standard clauses for inspection and audit, fraud and corruption

Pricing –Cost: $1.8 million for consultant services plus $4.8 million as pass-through for hiring drillers –Pricing of the subcontract works based on previous rates with inflation adjustment –Task Team ensured reasonableness of the prices based on comparison with similar contracts