Risk Management (what you have done to mitigate the risk?)
Status
(Critical/Not critical)
Status Change Date or Review Date
Risk Monitor or Owner
Environmental
December 2007 – January 2008
Due to adverse winter the implementation of project’s components slowed down;
Due to weather conditions, the regular supply of electricity and gas was limited to minimum, which impacted the implementation of some sub-projects.
Activities were re-scheduled;
Alternative sources (generators, heaters etc) were used.
Critical
January 2008
Financial
December 2007– January 2008
Increase of inflation rate negatively impacted in procurement of goods and services for implementation of some components;
Procurement of goods and services were re-considered;
Not Critical
January 2008
Operational
January 2008
Due electricity supply cut offs, there is a risk of delivery of bank transaction, which may impact the implementation.
All payments were recommended to be advanced
Not Critical
January 2008
Regulatory
December 2007
Due to amendments into the Law on Public Associations, there was a requirement to re-register the JRCs’ Charters, which could have bent the activities of JRCs in 2008.
Project’s lawyer was delegated to assist the JRCs to undertake the re-registration process and to speed that up.
Not Critical
January 2008
Security
December 2007 – January 2008
Due to much snow falls, the conditions of roads and other communication means became dangerous, which could have impacted the timely implementation of the project.
Safety measures were considered.
Critical
January 2008
Issue Logs
Shaartuz Area Ofice
ID
Issue Type
Date
Occured
Issue Description
Issue Management
Status
1
Environmental
20/01/2008
Severe cold spells hinders timely progress of concrete works for rehabilitation of water supply system for Kumsangir district center; sub-project code: (316-TACIS- UNDP STZ-RFQ-TL/DWS-KUM-07, Procurement and mounting of equipments for pumping station and rehabilitation of internal distribution networks in “Dusti" district town, Kumsangir district.) and (317-TACIS- UNDP STZ-RFQ-TL/DWS-KUM-07, Procurement and mounting of equipments for pumping station "Uzun II" and rehabilitation of main delivery pipe line in Uzun-Kalinin, Kumsangir district.) Additionally, the lack of electric power causes problems in pumping the water to main delivery pipeline.
Also, cold whether dominating already for 3 weeks contributed to the delay of excavating works under rehabilitation of Irrigation channels Chashma and Kizil ketmen for Komsomol Jamoat, N. Khisrav district; sub-project code: (318-TACIS- UNDP STZ-RFQ-TL/IRW-NKH-07, De-silting of "Chashma" channel of 7km length and irrigation channel "Kizil-ketmen" of 3km length, jamoat Komsomol, N Khusrav district.)
As per clause number 67 of General Conditions (Suspension by the UNDP), all related IPs have been noticed through letter to suspend the work for a specific period. The term of contracts will be extended by the UNDP for a period equal to a period of suspension.
Solved partial
2
Environmental
24/01/2008
Delays happened in planting of vegetable seeds and springs (early agro-products/ spring-onions, cabbages, cucumber) under greenhouses constructed due to cold weather condition and/ frozen soil surface;
Suffered areas: Komsomol jamoat of N. Khisrav district and Kumsangir Jamoat, of Kumsangir district;
Use the alternative methods of warming the greenhouses: pipeline, strong composting etc. To consult with beneficiaries.
Under solution
3
Environmental
24/01/2008
Suspension on construction of storage facilities in jamoat Sarmantoy of Pyanj district and jamoat Pyanj of Kumsangir district due to the cold weather.
Speed up the construction works during the soon warm weather.
Under solution
4
Environmental
20/01/2008
Due to unusual cold temperature in the area the concrete works under rehabilitation of two irrigation sub-projects (334-CIDA-UNDPSTZ-RFQ-TL/DWS-STZ-07, Procurement of equipments and tools for construction of irrigation and pumping station on Kofarnigon river, jamoat Sayod, Shaartuz district) under CIDA project have been suspended since 06/01/2008, and did not started up to now.
As per clause number 67 of General Conditions (Suspension by the UNDP), the related IP has been noticed through letter to suspend the work for a specific period. The term of contract will be extended by the UNDP for a period equal to a period of suspension.
Under solution
5
SLM
31/01/2008
The post-training monitoring of new established WUA members has shown that the farmers and WUA members are not able to calculate the amount of needed water for irrigation of their fields. The training modules are not matched the training needs. The farmers could not sign an agreement for water supply without the knowledge in proper calculation.
It is necessary to inform Winrock International about the issue and agree on retraining of WUA members in order to strengthen knowledge of farmers and WUA members.
Under solution
6
SLM
25/01/2008
Due to unusual cold temperature in the area the concreting and totally manual works on two irrigation sub-projects (336-GEF-UNDP/STZ-RFQ-OM/IRW-JKL-07, 337-GEF-UNDP/STZ-RFQ-OM/IRW-KAB-07) have been timely suspended since 06/01/2008, and did not started up to now.
As per clause number 67 of General Conditions (Suspension by the UNDP), the related IP has been noticed through letter to suspend the work for a specific period. The term of contract will be extended by the UNDP for a period equal to a period of suspension.
Under solution
Ayni Area Office
ID
Issue Type
Date
Occured
Issue Description
Issue Management
Solved or not Solved
001
Administrative
January 2007
With the application of new UNDP procedures on bank transfers, what would be the new contracting procedures;
Respective UNDP CO and CP staffs were contacted necessary information regarding the new financial procedures obtained.
Solved
002
Programme,
MFI & RFs
January 2007
JRCs, which were established with the support of GAA have not yet received payments for operational expenses. This may lead to dual negative effect: (1) JRCs can not receive furniture and IT equipment from UNDP unless the JRC premises to not conform to the security standards. Therefore, JRCs will work without any appropriate working conditions; (2) If delays last too long, the guarantee period for purchased IT equipment and furniture will expire and it’ll be impossible to return the items for replacement, in case if they are non-functional;
Discussions are to be conducted with the PCU and GAA to accelerate the payments so that the mentioned issues are minimized.
Solved
003
Programme,
DECs
March 2007
Delay in payments; contract with the Public Fund VTE has been signed, but the payment is delaying;
UNDP CP respective staff was contacted to speedup the process.
Solved
004
Programme,
BACs
March2007
To what extent is it useful to join funding with GAA for implementation of cashmere project?
After meeting GAA and UNDP decided to implementation cashmere project jointly to avoid duplication.
Solved
005
Programme,
BACs
April 2007
If the payment for Odessa Centre LTD. is delayed, the implementation of the project will be ineffective due to its seasonality;
Close communication with CP and CO Finance Units to be held to ensure that delays are brought to the minimum.
Solved
006
Programme,
JDF
April 2007
Proper documentation; what is the complete and exact list of documents required for infrastructure projects to be tendered?
Together engineers of UNDP CP and Ayni AO identified and agreed the list of documents for tendering.
Solved
007
Programme,
JDF
April 2007
To ensure the timely completion of both projects implemented by PMK 15 who won two tenders;
As the result of conducted site inspection both contract were awarded to PMK 15 (PMK 15 able to implement both projects at the same time).
Solved
008
Programme,
BAC
April 2007
Tender for rehabilitation of BAC office conducted on 30 March 2007 and Contract signed immediately. Two weeks have passed, but no payments have been received by the vendor to start the work;
Forthcoming DFID mission mentioned that they would like to meet with BAC staff during the annual review; therefore UNDP CP respective staff was contacted to speedup the process.
Solved
009
Programme, baseline survey
May 2007
The Zarafshan Valley stakeholders are aware about Baseline survey result; when the district level presentations on baseline survey planed by M-Vector will take place?
UNDP CP and M-Vector were informed about this delay.
Solved
010
Programme,
MFI
May 2007
MFI Executive Director and Board of Founders requested to allocate additional funds for recruitment of 4 new staff, as the current workload is extremely high;
After negotiations the MoU for non-credit activities were amended.
Solved
011
Programme, DDF
May 2007
Proposal for procurement of equipment for regional typography in Panjakent has been submitted by Typography in Panjakent and approved at DDCs meeting under District Development Funds for its significant impact. However, same type of letter from local newspaper in Panjakent has been submitted to UNDP Ayni AO in February. Conflict has raised between both parties;
Panjakent district Hukumat and DDC to discuss the issue with both parties and to come to a conclusion on who will the equipment be handed over to.
Pending
012
June 2007
The Business Advisory Centres in Ayni and Panjakent are managed by three key staff: Director, Economist/Agriculture Specialist and Lawyer. Current decision making at BAC level can lead to conflict of interests in management;
Issue to be discussed at the forthcoming JRCs coordination meeting and JRCs to form the Board of Founders.
Solved
013
Programme,
BAC/MFI
July 2007
According to the Project Document, a public Internet access centers at both BACs should be established. BAC “Devashtich” has selected “Telecomm Technology” internet provider but has problems with connection/ The reason is that connection should be made through telephone land lines, but “Tajik Telecom”, the land line service provider, refuses to give a line. They motivate it by the fact, thet they have no Cooperation Agreement with “Telecomm technology” and suggest to connect to “Babilon-T” provider. When requested to give written refusal, Head of “Tajik Telecom” does not do so. It seems the former is lobbying commercial interests of “Babilon-T” using his monopolistic position in the market;
Letter was sent on 24 July to the Head of OJSC “Tajik Telecom” branch in Penjikent city requesting to solve the issue.
Solved
014
Programme, DDF
August 2007
Specifications for printing equipment for Panjakent Typography require assessments in printing houses functioning Dushanbe. Lack of previous experience in purchasing such equipment can lead to delays in delivery;
Ayni AO staff members to conduct assessment in Dushanbe.
Solved
015
Programme, JDF
August 2007
Re-election meetings in JRC Kolkhozchiyon were not conducted transparently. This may have a negative impact on annual meetings to be conducted in other Jamoats, where JRCs operate;
UNDP and GAA wrote a letter to JRC Kolkhozchiyon stating that meetings are to be conducted with broader participation of project stakeholders in October 2007.
Solved
016
Administrative
September 2007
Transfer of banks into new system of operations is blocking transfer of payment to contractor’s bank accounts;
Daily follow up of payment transaction through ATLAS and communications with contractors.
Solved
017
Programme, JDF/DDF
November 2007
Fund allocation; should the social-economic infrastructure sub-projects include VAT 20% or not;
After discussion with UNDP CP the VAT exception letter obtained and distributed among all contractors.
Solved
018
Programme
December 2007
Due to end of the FY the Institutional Contract with Asia Business Group are still not signed by UNDP;
All planed works under this contract postponed to January 2008.
Pending
Gharm Area Office
ID
Issue Type
Date
Occured
Issue Description
Issue Management
Solved or not Solved
1
Is this a Change to project
November 2007
With the aim of ensuring effective realization of the first and second sub-components, the rural infrastructure sub-component was postponed.
The project was extended for a year.
Solved
2
Is this a Problem for the project
January 2008
If the contracts for the extension agents under the JRCs will not be extended, this might have an influence on quality of sub-projects.
Contracts should be extended
Solved
3
Other indicate
N/A
Khujand Area Office
ID
Issue Type
Date Occurred
Issue Description
Issue Management
Solved or not Solved
1
Problem to the project
October 2007
Timely transfer of funds is still an issue. Internal investigation revealed that financial reports are not sent to Dushanbe finance in a timely manner and is kept by AFA.
Specifically, the DSAs to Tashkent for the drivers have not been paid for four (4) months because the relevant papers were not sent to Dushanbe.
Also, a number of project financial reports were discovered to have not reached Dushanbe front office. The issue was raised and discussed with the AFA.
The issue has been raised through regular internal communication.
Solved
2
Is this a Problem for the project
The works under sub-project #213 on rehabilitation of the irrigation system “Dam” in Chorku is rather problematic, due to undefined border lines between Tajik and Kyrgyz settlements. During the construction works on the river, where a dam should be constructed, the Kyrgyz border guards and militia prohibited construction works reasoning that the works were going on the Kyrgyz territory.
UNDP facilitated the negotiation process. As a result the Isfara district and Chorku jamoat authorities met with the local law reinforcement and border control structures to discuss the issue. After internal discussions the Isfara authorities met with the Kyrgyz colleagues and consensus was reached. It was identified that the border line cuts through the middle of the river. After this meeting the construction works resumed and completed.
Solved
3
Is this a Change to project
A serious violation of UNDP rules and regulations was recorded. The AFA of Khujand AO has used the UNDP vehicle for non-official purpose without following the regulations for such use.
The issue was raised to the management of CO and resulted in termination of contract. A new AFA was recruited.
Solved
4
Change to project indicators
The bucket drip feed irrigation component of the project is of a concern. According to the project document at least 100 families should be equipped with dripped irrigation facilities, however, the funds allotted for this purpose is not sufficient. It is because when the project was at the development stage the prices for the dripping irrigation systems was adequate, whereas today the prices have considerably increased. It is therefore, suggested to equip at least 10 families in the target areas with dripping irrigation systems and demonstrates its functionalities to the other 100. In any case other solutions are to be sought and if necessary apply to the EU for amendment of the project targets.
48 families were equipped with the BDFI systems and 2 week demonstrations of the systems’ functionalities were demonstrated to over 4000 people. It is expected that the results will be replicated by the local population during the cultivation season
Solved
5
Since the adoption of the Law on Microfinance Organizations (MFO), all 15 RFs established under the JRCs were to be unified into one of 3 forms (MLF, MLO and MCDO). In terms of quality and available potentials of JRCs, 2 types (MLF and MLO) of Microfinance Organizations are being tested in line with exit strategy, developed by UNDP CP specialists. Thus, early in 2005, JRC Kamishkurgan disassociated RFs and became a founder of Micro Loan Organization “Kamishkurgan”. Further on, it was decided that rest of JRCs (14) had to found 1 regional MLF. However, although all 14 JRCs had agreed and signed for founders’ protocol for establishment of MLF Sughd Microfin, JRC Vorukh managed to register its RF as MLO Vorukh independently. And even received a license in February 2007, whereas MLF Sughd Microfin could get the certificate only in April 2007. JRC Surkh, reasoning that MLO Vorukh is in close proximity to Jamoat Surkh, gathered the JRC Board to supported joining RF Surkh to MLO Vorukh, and relevant protocol was signed. MLO Vorukh supported the idea and without any hesitance accepted their offer. As a result, an agreement between the two parties was signed alongside with Funds Hand Over and Acceptance Report. Despite the fact that several meetings on this matter were organized with UNDP Econ.Ad, Sen.EA, FPC and head of JRC Surkh, multiple requests of UNDP representatives to JRC Surkh bore no results. Moreover, the Econ.Ad. met with Board of MLO Vorukh and suggested to reconsider accepting JRC Surkh’s RF. During the meetings, Director of MLO Vorukh convinced the EA that they gathered a board and decided to refuse from Surkh’s funds. In reality, refusal from Surkh’s funds did not take place as was identified when EA met with the Deputy Head of Bank Control, NBT branch in Khujand (Mr. A. Madoripov) Sep 20, 2007. Moreover, Assistant Deputy Head of Bank Control showed the last financial reports of MLO Vorukh, where funds received from Surkh were reflected, which actually proves that funds are still with MLO Vorukh. On the other hand, it also proved that funds of Surkh are being spent in Jamoat Surkh and there is a regular control over spending. Furthermore, during the last meeting with head of JRC Vorukh (Sep 28, 2007), it was clearly stated that MLO Vorukh did not gather any kind of meetings on this matter and even does not have any intentions to refuse from Surkh’s funds. In addition, EA was informed that director of MLO Vorukh was in Dushanbe (Sep 24-28, 2007) to re-register the MLO Vorukh Charter with inclusion of funds received from JRC Surkh. Now, it is clear that after the new charter of MLO Vorukh is registered, any further attempts to “return” JRC Surkh’s funds to MLF Sughd Microfin will be questionable, unless MLO Vorukh rejects Surkh’s funds and re-registers its charter. The ineligibility of “returning” the funds of Surkh to MLF Sughd Microfin after MLO Vorukh re-registers its new charter was double checked during the meeting of EA with NBT branch in Khujand (Mr. Shermurodov B and Mahmudov D. on Oct 2, 2007). Moreover, due to the agreement’s expiration (Dec 31, 2006) between UNDP and JRC Surkh on RF, it is obvious that UNDP is not in the position of getting involved in this matter unless any other legal ways are found. Thus, now it is obvious that affiliation of Surkh’s funds into MLO Vorukh chartered capital has a benefit for MLO Vorukh: MLO Vorukh needs Surkh’s funds in order to show the capital “attraction” ability so that to be able to access other source of funding in the future.
The issue is raised with the management of the UNDP CP. The CP management issued a warning letter to the JRC Surkh for violating the agreement between UNDP and the JRC. Additionally, the NBT was informed of this misconduct. The issue was also raised at the JRCs and MLF “Sugdmicrofin” meetings.
Not solved
6
Problem to the project
June – December 2007
A number of staff members have left for various reasons starting from May 2007 through to December 2007. Lack of human resources could have negatively affected the project results. As a result the workload of the remaining staff members doubled.
Appropriate redistribution and delegation of responsibilities to the remaining staff members helped to reach the project results and set targets.
Solved
7
Problem to the project
September 2007
Reportedly from October 15, 2007, power supply to Khujand will be limited; this includes limited supply to Khujand AO also.
During the last visit of the RR a.i. to Soughd region this issue was raised with the first deputy governor of Soughd region, who promised to ensure that a separate independent power line would be available to Khujand AO. Relevant letter is prepared to Hukumat and submitted.
Solved
8
Problem to the project
September 2007
Due to changes of authority in the Hukumat of Sughd region replacements and recruitment of new staff in the Hukumat had taken place. As a result there was no identified person from the Hukumat to cooperate and coordinate activities with UNDP.
The issue was raised by the UNDP RR a.i. during the meeting with the deputy chairperson of Sughd region. A focal point was appointed and introduced to UNDP.
Solved
9
Problem to operation of the UNDP Khujand AO
January 2008
Lack of cash and untimely transfer of operational funds resulted in improper operation of Khujand AO in terms of administration and office running.
The issue is addressed to the CP management.
Not solved
10
Problem to the project implementation and operation
January 2008
There is a possibility of a nation wide “black out”, which may result in severe power cuts, lack of drinking water and food commodities. This may also result in communication gap between the AO and other partners including the management in Dushanbe.
The issue is raised by the UNDP CO. Cash for the operations is expected to partially address the issue by procuring fuel and other necessities.
Not solved
11
Problem to project
January 2008
The budget of the newly TACIS funded project is not yet confirmed and transferred.
The issue is raised to the UNDP CP management
Not solved
12
Problem to project
January 2008
With the start of the new TACIS funded project, Khujand AO still lacks key positions – engineer and economic advisor. Lack of these positions may result in delay of delivery of project targets.
Advertisement on vacancies was made on national newspapers and UNDP website.
