A contingent emergency response component (CERC) is added to the $230 million World Bank project “Competitive and Livable City of Karachi” (CLICK) in order to redirect $27 million of the loan to address the immediate needs of the flood emergency response. This project is rated as moderately unsatisfactory.
The CERC is planned to be included in the project as Component 5, which will be instantly activated to address the existing flood situation once the loan adjustment takes effect, according to official papers made accessible to sources. $27 million of the CLICK loan will go to CERC.
For CERC emergency expenses, a new disbursement category (Category 5) will be added. The CERC handbook and an “Emergency Action Plan” outlining how these monies will be used are presently being created.
The Local Government Department (LGD) Project Implementation Unit (LGD-PIU) Designated Account will be used to make payments under the CERC. As required, the Direct Payment method will be used.
According to the papers, the Financial Management team of the LGD-PIU will separately enter the CERC-related expenses in the books of account under the separated component and category. Expenses connected with the CERC will also be reported individually in the IFRs.
According to Section 29 of the Bank Guidance on CERC, documents, the CERC will be audited as part of the CLICK audit.
The CLICK implementation plans as they are now will not alter. The LGD-PIU, which is in charge of CERC’s financial management and procurement, will execute the CERC. From the Sindh Resilience Project – Provincial Development Agency (PDMA) PIU, the LGD-PIU will get technical support (SRP-PIU). Using the SRP PIU
- Conduct a market analysis to find both domestic and foreign providers.
- Calculate the expenses related to the provision of products, services, and works
- Key contract provisions and technical requirements in draught form
- Describe the hazards the current market poses and the steps being taken to address them.
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