GAAP( Governance and Accountability Action Plan )

GAAP( Governance and Accountability Action Plan )
INDIA: Odisha State Roads Project

The context for the preparation of the proposed Governance and Accountability Action Plan (GAAP) is the recognition by the state government and the Bank the need to improve accountability arrangement with a view to reducing the chances of corruption and enhance transparency of the road sector. The GAAP is prepared based on Odisha's state-level Anti- Corruption Action Plan (approved in 2005) and India's 2005 Rights to Information Act (RTI), and integrates the lessons learned in the implementation o f Bank-financed road projects in India.
Odisha Anti-Corruption Action Plan. Odisha is the first state in India to articulate a comprehensive medium-tern, anti-corruption action plan to improve institutional transparency and accountability. The Action Plan is divided along three broad categories of governance reforms for
1. Preventing Corruption by developing better systems and procedures that improve transparency and accountably. These include procurement reforms and business process reengineering in corruption prone sectors and service delivery institutions.
2. enforcement actions to deter corruption, including a major expansion o f enforcement machinery both at the state level and within departments through the establishment o f internal vigilance units and new special courts to try corruption offences;
3. citizen "voice " and public awareness to support prevention and enforcement activities, including providing information to communities about their service delivery rights. The action plan also includes establishing better information management systems to facilitate the implementation of the Right to Information Act (RTI). It i s expected that Odisha's anti-corruption action plan will be piloted in four government departments, including the Odisha Works Department (OWD).
.Right to Information Act (RTI). India passed the Right to Information Act, in 2005 and the Act became operational across India from 12 October 2005. The Act mandates the disclosure of and universal access to information wherever in the public interest. Compliance to the Act is required for all public entities. Implementation of RTI requires systems for on demand and suo moto disclosure of information, and for each government department to develop a disclosure policy, automated systems for record and document management, and information handling, and appointment of trained staff, programs for citizens' awareness, and annual progress reporting. The State of Odisha acting on the directions given in the RTI Act has promulgated the Odisha State RTI Rules 2005, and has adopted RTI Manual Template (first developed for the state of Uttaranchal). Both Odisha State RTI Rules and Manual Template, as well as the disclosures o f some GOO departments are already available on the state's RTI website: http://orissagov.nic.in/rti.
Key GAAP Features:-
Taking the above two enabling environments, a Governance and Accountability Action Plan (GAAP) has been prepared to improve the transparency and accountably arrangement with which the proposed OSRP will be implemented with a view to reducing the chances of corruption. The idea is for the OSRP to make project resources (both financial and expert advice) available to the Government of Odisha (GOO) to comply with the RTI provisions and implement the state's anti-corruption action plan, as inadequate resources could delay and stifle implementation o f these important initiatives. Accordingly, through several consultations with the OWD and various GOO officials involved in the Odisha's anti-corruption plan and RTI implementation in the state, the GAAP has been prepared. The GAAP is primarily focused on the OSRP implementation, but would have implications for the entire department and could be scaled up once its efficacy is proven.
Implementation of RTI to increase transparency and accountability :-
Full compliance to the act has the potential of enhancing transparency and accountability and reducing chances of corruption. For the OSRP, complying with the RTI will involve several activities, listed below.

First, OWD needs to prepare a disclosure policy with the intention o f allowing greater access to information, including disclosure o f mid-term review reports, safeguards information, audit reports, relevant information on the procurement process, and other agreed. OWD has prepared a disclosure policy (Appendix 1 to Annex 6a provides the proposed disclosure policy and strategy). The expectation is for the OSRP, besides complying with on-demand access to information, to fully comply with provisions on suo mot0 disclosure under Section 4 o f the RTI Act (See Appendix 2, A, for the relevant extracts from the Act).
Second, OWD needs to develop systems andprocedures to implement the disclosure policy, for both on-demand requests and suo moto disclosure. It i s expected that as the suo moto disclosure is fully developed, the need for on-demand information disclosure will be minimized. The OSRP will provide resources to develop the systems and procedures, including establishing a website for OSRP, and for developing automated record management system, management information system and network. Appendix 2, B provides the relevant sections o f the RTI Act specifying the requirements for the systems and procedures for complying with disclosure.
Third, complying with RTI, OWD has developed organizational arrangements and capacity building plan (Appendix 2, C). OWD The organizational arrangement includes provisions for operationalizing the disclosure policy and the maintenance of the automated systems of disclosure. Public Information Officers (PIOs) and first appellate authority have been appointed as per the Act. Capacity building is envisaged for all involved for enhanced disclosure to become effective and improve accountability and transparency. The capacity building plan will need to be developed and organized for public to use the information most effectively. PIOs also need to be trained to become more effective.
Finally, complying with RTI OWD has developed Reporting and Monitoring system. Reporting requirements under the RTI includes annual report on implementation of RTI and recommendations for the future, including disaggregated indicators on various aspects o f RTI compliance. Details are given in Appendix 2, D.

The anti-corruption strategy emphasizes the importance of simplification, rationalization and standardization of business processes in government departments and commits the government to systematically analyze and reform processes that are vulnerable to corruption. The OWD plans to undertake reforms related to process simplification, rationalization and improvement of systems, PWD codes and manuals. In addition, outside of this project, the GOO, under the DFID-supported Odisha Modernizing Government Initiative, will undertake a comprehensive analysis o f government processes in various departments, including the OWD.
Strengthening of preventive vigilance by appointing a Chief Vigilance Officer (CVO) in OWD with adequate technical, secretariat and systems support:-
The appointment of a CVO in OWD is a critical step in focusing the anti-corruption function at the Department level. The CVO would also be provided by support team, including technical specialists, auditors and legal experts. Furthermore, an automated complaints handling mechanism would be set up in the office of the CVO. Such mechanisms already exist in other projects in Odisha and neighboring states, and a consultant will be appointed to design and implement such a mechanism in consultation with the Odisha Modernizing Government Initiative, which is spearheading the government's administrative reforms and anti-corruption plan.
Third Party Monitoring:-
Third-party monitoring by beneficiaries and stakeholders provide additional tool for ensuring better monitoring and increasing transparency. However, in the highway sector, such beneficiaries and stakeholders are not easily identifiable, as they are dispersed through out the highway. As such community or civil society based third party monitoring will not be applied in OSRP. Instead, the OWD will try innovative method of engaging independent Project Quality Monitors (PQMs) and engineering students to review engineering design (a value engineering assessment) and assess quality of construction. The engineering students and professors will be drawn from local technical universities. OWD may invite the Public Affairs Centre, Bangalore or a similar reputable agency, to help it organize and facilitate this third party monitoring.
Strengthening Core Process in Procurement and Financial Management:-
The anti-corruption strategy envisages strengthening the OWD core functions in procurement and financial management. As part of the institutional and policy development component support under OSRP, OWD will undertake a serious capacity development activities and reforms to improve its procurement, contract and financial management practices. This will include introducing e-procurement, preparing new bidding document, maintaining database on costs and contractor performance, and introducing computerized financial management system.

Monitoring mechanism for implementation and results will include the following:
1. Implementation of RTI: monitoring the index for disclosure of information like the duty to publish index (DTP). (a) Quarterly reports on the format o f annual reports, and (b)
2. The complaints handling system and the system of sanctions and remedies will be supervised mainly through (a) periodic review of statistics based on records kept on the OSRP website, and (b) field level checks to ensure that problems are being reported, tracked and acted upon.
3. Corruption Perception Surveys carried out once in two years
4. Maintain a database on unit prices and review o f unit prices within the project and outside the project as a result of the various actions taken under the project for increasing transparency and competitiveness
5. Benchmarking for indicators like lead times from the time o f bidding to the signing of contracts, extent of responses against ITBs, adequacy of estimates through review of actual costs vis-&vis estimated costs, etc

Governance and Accountability Action Plan Matrix

Action To Be Taken	Time Line	Responsibility	Remarks
1. Implementation of Right to Information Act, 2005 (RTI)
(i) Agree on a disclosure policy	Done	OWD	Done
(ii) Develop systems and procedures to implement RTI	By Appraisal and continue	PMU	PMU staff sensitized; OSRP Website re-designed and information uploaded and being updated; The website of OSRP was reviewed by the World bank mission In April 2010, suggestions incorporated. RTI-CMM Complied.
(ii) Develop systems and procedures to implement RTI	By Appraisal and continue	OWD	OWD Website is to be re-designed to be updated
(iii) Develop organizational arrangements	Done	PMU	Appellate Authority, PIO/ APIO appointed. An officer (EE) in PMU assigned for implementation of various provisions under GAAP..
(iii) Develop organizational arrangements	Done	OWD	An officer of the rank of Additional Secretary in OWD assigned for implementation of various provisions under GAAP.
(iv) Conduct training for RTI staff	Start by Appraisal and continue	PMU	One workshop implementation of RTI Central monitoring mechanism was conducted by PMU on 01.02.10 which was inaugurated by EIC(C) and attended by all CEs, Appellate Authorities, PIOs, APIOs under EIC(C) and PMUs staff. Another such training program is proposed to be conducted in the month of February, 2012 by PMU.
(v) Reporting and monitoring arrangement	Done	PMU	Done
(vi). Disclosure of information indicators	Start in December 2007 and continue	PMU	Done
2. Business process re-engineering to support better accountability and transparency
(i) Simplification and rationalization of systems – PWD code, procurement manual etc	December, 2008	PMU	a) The issue was be referred to the ISAP working group meeting on dt.15/5/2010 for developing institutional arrangement for revision of OPWD code through CE (RD & QP) as the nodal functionary, with the assistance of external expert/s. The ISAP working group recommended for engaging a consultant to do the base work under the guidance of ISAP working group. b) Feedback from the Vigilance/quality workshop jointly conducted by Chief Engineer, RD & QP and Chief Engineer, World Bank Projects shall be utilized.
3. Improving procurement practices in the works department
(i) Implementation of e-procurement system covering electronic publication of invitation for bids, availability of bid documents & publication of contract award	July, 2008	GOO	Apart from implementation of E-procurement in Govt. Departments and state PSUs, State Procurement Cell is presently performing the following activities:- Training to officers and bidders on e-procurement. Monitoring and Reporting observations on published Tenders to concerned Department and state PSUs. Liassoning with various departments and PSUs of the state for up-gradation of present e-procurement modules. Domain input to NIC for development/up-gradation of e-procurement modules. Testing of new modules and. Providing help Desk Support to officers and bidders.
(ii) Development of standard templates & uploading on project website	August, 2008	OWD	To be developed by State procurement (e-procurement )cell under Works Department.
(iii) Development of databases for contracts, contractors, prices, specifications etc and document management and management information systems	December 2009	OWD	The secretary level Committee meeting held on dt. 23.09.2011 under the Chairmanship of Principal Secretary to Govt., Finance Department decided create a Domain Expert Mission Teamfor the study ofpre and post procurement modules, which includes online contractor Registration, Contractor Database, Physical/Financial status of work, litigation history of the contractor and online payment to the contractor. NIC will engage consultant for study of pre and post procurement modules under National Mission Mode Project. This is being monitored by State Procurement Cell under Works Department.
(iv) Independent quality and quantity checks	Start with the first contract	PMU	As per decision of the SLEC dtd. 07.05.2011 NIT, Rourkela has been awarded with the assignment of independent third party review of quality assurance system, quality of work and safety by academic and research institutes in 3 Year -1 roads. NIT, Rourkela submitted the inception report on dtd.09.08.2011 and conducted the 1st audit visit to the P-01 (Bhawanipatna-Khariar) road corridor on 27th to 30th August 2011, P02 (Anandapur-Bhadrak-Chandabali) road corridor on 11th to 14th November 2011 and P03 (Berhampur - Taptapani) road corridor on 09th to 12th December 2011.
(v) Independent financial and technical audits	Every year	Accountant General (Financial)	AG audit being done as per procedure audit report (Interim Unaudited Financial Report) being uploaded on OSRP website. Audit certificates obtained are submitted to World Bank.
		OWD (Technical	Suitable persons for Project Quality Monitoring will be engaged by OWD.
(vi) Benchmarking of indicators like procurement lead times, extent of bid responses, contract performance etc.	March 2010	PMU	To be covered under pre-and- post procurement module envisaged and e-procurement module vide 3 (iii) above.
4. Strengthening preventive vigilance
(i) Appointment of a CVO	March, 2007	OWD	a.OWD already has put in place a CVO. b.Preventive vigilance: One workshop on Quality and Vigilance was conducted on 20.01.11 in RDQP Laboratory, Bhubaneswar. This workshop was jointly organized by the World Bank Projects (WBP), Odisha State Road Project (OSRP) and Research Development & Quality Control Promotion(RDQP),Odisha.2nd workshop is being planned.
(ii) Setting up of an on-line complaint handling system in the government which will direct the complaints for redressal/ investigation to PMU based on nature of complaint	In place.	GOO/CVO	On line complaint handling system will be established in the Works Dept. along with redesign of OWD website.
	In place.	PMU	Draft online complaint handling system (CHS) developed and presented to WB mission in April 2010 and after obtaining the no objection from the World Bank to the modified CHS, approval of Government received vide letter no. EAP(Cell)15/10 Part 512/ dt.14.01.2011. The system development of online CHS is Complete. The Cyber Security Audit of online CHS along with the complete dynamic website of OSRP is being conducted by M/s AKS infotech (Third Party Quality Auditor recognized by NIC) with the help of M/s Luminous Infoways Pvt. Ltd & NIC. Presently PMU is operating CHS manually. Complaint Handling Officer has been designated.
5. Third party monitoring
(i) Use Project Quality Monitors (PQMs) for Third party monitoring.	February 2009	PMU	NIT, Rourkela has been awarded with Third party monitoring vide decision of SLEC dtd. 07.05.2011 and has commenced the audit.
(ii) Decision on introduction of third party monitoring	March, 2009	OWD	The issue will be referred to ISAP working group for developing an effective system for third party monitoring in the OWD works.
6. Development of monitoring indicators for compliance and outcomes
(i) Perception surveys	At start, at mid-point & towards end of the project	PMU	User's perception of project performance is being undertaken by hiring of a consultant service. M/s Marketing Development Research Associates, New Delhi has been assigned with the consultancy services for Road user satisfaction survey, The firm has already submitted its inception report.
7. Increasing competition and mitigating collusion
(i) Finalizing contract sizes and qualification criteria based on market information	Start with the first contract	PMU	Done
(ii) Business briefings for bidders	As required	PMU	PMU will organize the road shows by engaging professional persons to help as and when required for organizing such events and the action will be taken by the govt. for the year-II road.
(iii) Disseminating details of the process for disqualification of bidders who engage in mis-representation/ fraudulent/ corrupt practices	As required	PMU	This will be hoisted in the website as well as to be reported to World Bank. Feedback from the proposed procurement workshop with World Bank resource person in PMU (3 vi above) will be utilized.
8. Financial Management
(i) Project financing plans	Quarterly	PMU	Procurement plan of OSRP is uploaded in the Website and updated regularly.
(ii) Budgetary allocation	Yearly	PMU	Budgetary allocation of OSRP is uploaded in the Website and updated regularly.
(iii) Expenditure statements	Quarterly	PMU	Expenditure statements of OSRP is uploaded in the Website and updated regularly.
(iv) Review of the central payment system for work related bills	September 2009	PMU	Done by AG (Odisha) annually.