Cambodia Urban Water Supply Project,IDA Credit No. 3746-KH and Grant No. 3041-KH

I. General:

1. 1- Objectives: The objectives of the Cambodia Provincial and Peri-urban Water Supply Project are to continue the program of IDA assistance to the Royal Government of Cambodia and Phnom Penh Water Supply Authority, so that consumers in Cambodian towns and rapidly growing peri-urban areas receive sustainable water supply and sanitation services.
2. 2- Original: 3,440,000.00 SDR for Credit and 200,000 SDR for Grant- Poor Household Connections
3. 3- Revised amount: 8,030,892.70Ÿ SDR for Credit and 500,000SDR for Grant- Poor Household Connections.
4. 4- Source of Funding: International Development Association (IDA)
5. 5- Effectiveness date:  November 16th, 2003
6. 6- Original Closing date:  June 30th, 2008
7. 7- Revised closing date:  June 30th, 2010
8. 8- Revised closing date:  June 30th, 2011
9. 9- Number of Extensions:  2 times
10. 10- Name and Address of PPWSA: No.45, Street 106, Sangkat Srah Chork, Khan Daun Penh
11. 11- Name of Project Director:  H.E  Ek Sonn Chan, General Director of PPWSA
12. 12- Task Team Leader’s Name:  Mr. Lixin Gu, Infrastructure Unit, Sustainable Development East Asia and Pacific Region
13. 13- Contact information in the MEF-WB unit and WB Office in Cambodia: The First Deputy Director Department of Investment and Cooperation Ministry of Economy and Finance 2nd Floor, Stree 92, Sangkat Wat Phnom, Khan Daun Penh, Phnom Penh, Cambodia
    Fax: (+855-23) 428-424 E-mail: thirong@camnet.com.kh  
14. 14- The World Bank Cambodia Country Office: 113 Norodom Blvd,
    Phnom Penh, Cambodia www.worldbank.org/kh
    1. Details of project components:
       Original:
       Water Supply for Peri Urban Areas ($6.10 million): The major component of the project will finance civil works and equipment in water supply infrastructure expansion in the  peri-urban areas of Phnom Penh.  Preliminary feasibility studies are being completed in five communities in the peri-urban areas of Phnom Penh municipality.  
       A preliminary list of peri-urban communities has already been identified in areas of Phnom Penh city and its suburbs that are occupied by low-income families. The estimated population living in these areas is around 430,000 (data from 1998) and the project envisages improving access to about 30% of this population. The constructed systems will be operated and managed by PPWSA.
       Program for subsidizing domestic connections of low income residents ($0.30 million): Phnom Penh's water distribution system in low income communities is characterized by single connections that  serve several households. This imposes a heavy burden on the poor because the existing block tariff structure increases the average water tariff as consumption moves from one consumption 'block' to another.  A pilot program for extending house connections to the poor under the on-going Cambodia Urban Water Supply Project has demonstrated that the main reason  for the relatively small number of individual house connections in low-income communities is the $100 connection fee.  This upfront payment is unaffordable to most poor residents, who earn around $1 a day in the urban informal sector.  In the pilot program financing was provided, so that the poor could repay through the water bill. As a result of that, coverage increased by approximately 50 per cent in the areas covered by the pilot.  In the proposed project IDA grant financing will support subsidies that cover connection costs to pre-identified households below the poverty line, with the objective of securing 100 per cent coverage in the subproject areas. 
       Institutional Capacity Building ($0.30 million):  This component will be utilized to build PPWSA capacity in constructing the elevated tanks. This component will finance a Civil Works  Advisor to assist the PMO/PPWSA during constructions of the elevated tanks. PPWSA will continue to monitor the project through the existing PMO in order to ensure that implementation is conducted in accordance with the Credit Agreement.
       Revised:
       Procurement of additional distribution pipes and fittings of four (4) packaged:
       1-High Density Polyethylene Pipes
       2-High Density Polyethylene Fittings
       3-Ductile Iron Pipes
       4-Ductile Iron Fittings           
15. 15- Percentage Completion:
                -Original Project Component:         100% completed
                -Revised Project Component:          30%
    Invitation for Bid:                                         Completed
    Bid evaluation report:                                   Ongoing
    PRC NOL:                                                 BPending      
    Bank NOL on BER:                                     Pending
    Signing of Contracts:                                   Pending
    Supply and delivery:                                    Pending
16. 16- Data on performance indicators:
17. 17- Project six months progress reports: Bank NOL for Advance Procurement action 4 packages dated …
18. 18- Planned and actual disbursements by subcomponent:
19. 19- Annual financial statements and audit opinion: Audit financial statement as of 30 December 2009 has submitted to Bank on 25
    June 2010
20. 20- Other specific reports prepared by the project: N/A
21. 21- Complaints and remedies mechanism:

Ethical Standards

- All involved in procurement activities covered by this Manual must comply with the following Code of Business Ethics.
- No individual shall use his authority or office for personal gain. Personal gain includes accepting or requesting anything of material value from bidders, prospective bidders or suppliers for the individual, his or her spouse, parents, children or other close relatives, or for other persons from whom the individual might gain direct or indirect benefit of the gift.
- An individual shall seek to maintain and enhance the reputation of the Government by:

• ° the highest standards of honesty and integrity in all relationships both inside and outside the Entity in which he works;
• ◊ Developing the highest possible standards of professional competence;
• ◊ Using funds and other resources for which he is responsible to provide the maximum benefit to the Government; and
• ◊ Complying both with the letter and the spirit of:
• • The laws and regulations of the Kingdom of Cambodia;
• • Accepted professional ethics; and
• • Contractual obligations.

- Conflict of interest
- An individual shall declare any personal interest that may affect or might reasonably be deemed by others to affect impartiality in any matter relevant to their duties.
- Disclosure of personal relationships
– an individual shall declare any relationship with a bidder, supplier, contractor or consultant and shall take no part in either the decision making process or the implementation of any contract where such a relationship exists. A personal relationship is defined as consanguinity or affinity up to the third civil degree.
- Confidentiality and accuracy of information
- An individual shall respect the confidentiality of information gained in the course of duty and shall not use such information for personal gain or for the unfair benefit of any bidder, supplier, contractor or consultant.
- Information given by an individual in the course of their duty shall be true, fair and not designed to mislead.
- Competition
- All bidders, suppliers, contractors and consultants shall be treated with fairness and impartiality, and avoid any business arrangement that might prevent the effective operation of fair competition.
- Business gifts
- No business gifts will be accepted from current or potential Government suppliers unless such gifts are of very small intrinsic value such as a calendar or business diary.
- Hospitality
- An individual shall avoid any business hospitality would be viewed by others as having an influence in making a government business decision as a result of accepting that hospitality.
- Reporting
- All individuals have a moral and ethical responsibility to report any unethical conduct by a colleague, a bidder or a supplier to their superiors, oversight agencies DA or to the auditors.
-Examples of Unethical Conduct - The following are examples of the type of conduct prohibited by this Code of Ethics:

• • Revealing confidential or “inside information” either directly or indirectly to any bidder or prospective bidder;
• • Discussing a procurement with any bidder or prospective bidder outside the official rules and procedures for conducting procurements;
• • Favoring or discriminating against any bidder, prospective bidder or consultant in the Preparing of technical specifications, terms of reference or standards or the evaluation of bids and proposals;
• • Destroying, damaging, hiding, removing, or improperly changing any formal procurement document;
• • Accepting or requesting money, travel, meals, entertainment, gifts, favors, discounts or anything of material value from bidders or prospective bidders, suppliers, contractors or consultants;
• • Discussing or accepting future employment with a bidder or prospective bidder, suppliers, contractors or consultants;
• • Requesting any other person to violate the public procurement rules or procedures;
• • Ignoring evidence that the Code of Ethics has been violated;
• • Ignoring illegal or unethical activity by bidders or prospective bidders, suppliers, contractors or consultants including any offer of personal inducements or rewards.

- From time to time, with and without justification bidders, suppliers, contractors and consultants will wish to lodge a complaint about the procurement process. When a contract exists between there are established mechanisms up to and including the courts to resolve disputes.

- A formal mechanism to satisfactorily respond to complaints has to be followed. The steps in the complaints procedure will be attached to the Notice of an Awarded Contract.

- There is now a complaints mechanism built into the NCB documents for goods works and services. However the standard ICB and requests for proposal documents of both the DAs do not contain such a mechanism for a bidder or consultant to lodge a complaint. Therefore the wording detailed below must be inserted into the bidding documents at the appropriate point in the Bid Data Sheet, Bidding Data or Proposal Data Sheet as appropriate.

“A bidder or consultant has the right to submit a written and signed complaint at any stage in the procurement process. The complaint will be addressed to the procuring entity (insert name, title and address of the responsible officer within the procuring entity). The Procuring Entity will review the complaint within 14 calendar days. If the complaint is submitted during bid evaluation the procuring entity will only acknowledge receipt and take the merits of the complaint into consideration in the evaluation process. The procuring entity will respond to the complaint immediately after contract award. In cases of contracts subject to prior review by the DA the complaint will be referred to the DA as part of the prior review process.

If the bidder or consultant is not satisfied with the answer received from the procuring entity within 14 calendar days of the procuring entity’s receipt of a complaint,  the bidder or consultant has the right to appeal within a further 10 calendar days and have the Procuring Entity’s decision reviewed by the Procurement Reviewing Committee established under the Project. The PRC will respond within 14 days.”

The findings of the PRC with regard to the complaint shall be final but without prejudice to any other recourse or remedies available under the laws of Cambodia”

22. Official fees and charges for service delivery:               Free of Charge

23. PPWSA's standard performance indicators:

II  Procurement Related:

24- Annual work plan and Procurement Plan:

- Expected Contract End Date:

25- Consultant long and short lists: N/A

26- Issued bidding documents and RFP's to be available for public viewing upon request: N/A

27- Copied of Bid Opening Records to be provide immediately to all bidders and those present at the bid opening and posted at a prominent location accessible to the general public outside the Project Office, in addition to being sent promptly to the Bank: YES

28- Contract award information using the forms provided in the Procurement Manual and consistent with WB's Procurement Guidelines:
            - Including bid and contract prices: YES
            - Unit prices of major items of pipes and fixtures: YES
            - Names of losing bidders and, if their bid prices were lower than the winning bidder: YES
            - The reason for their rejection: YES

29- In addition to the required publication of each contract award information in UNDB/DgMarket, the same information to also be posted at a prominent location outside the Project Office within 14 days of WB's no objection to the bid evaluation report:  March 11, 2010

30- And quarterly summaries of contract awards to also be published in national newspaper of wide circulation:  Will be

31- Quarterly summary reports in accordance with the Government's Procurement Manual for Externally Financed Projects: