Volume X - Issue VII - July 2008
Other News Affecting Projects & PM
World Bank announces new $1.2 Billion Food Crisis Fund The World Bank Group has announced a new $1.2 billion rapid financing facility to address the growing food crisis around the world, including $200 million in grants for the world's poorest countries. Announcing several measures to address immediate to longer-term food challenges, the World Bank Group said it would also boost its overall support for global agriculture and food to $6 billion next year, up from $4 billion, and would launch risk management tools, and crop insurance to protect poor countries and small-holders.
“As we go into the Rome meeting next week, it is crucial that we focus on specific action. Along with our partners, these initiatives will help address the immediate danger of hunger and malnutrition for the two billion people struggling to survive in the face of rising food prices, and contribute to a longer-term solution that must involve many countries and institutions,” said World Bank Group President Robert B. Zoellick (pictured). Grants for Djibouti ($5 million), Haiti ($10 million), and Liberia ($10 million) were approved on 29 May. In the coming month, the World Bank expects to provide grants to Togo, Yemen and Tajikistan. These countries have been identified as high priority based on rapid needs assessments undertaken in the field with the World Food Program, the Food and Agriculture Organization, and the International Fund for Agricultural Development. Rapid needs assessments have now been completed in more than 25 countries, with another 15 ongoing. The $1.2 billion facility, designed to address immediate needs, will support safety net programs such as food for work, conditional cash transfers, and school feeding programs for the most vulnerable. It will also provide support for food production – this year and beyond - by supplying seeds and fertilizer, improving irrigation for small-scale farmers, and providing budget support to offset tariff reductions for food and other unexpected costs. As part of the new facility the World Bank is also establishing a Multi-Donor Trust Fund to facilitate policy and operational co-ordination among donors, and leverage financial support for the rapid delivery of seeds and fertilizer to small farmers for the upcoming planting season. The new rapid response facility stands alongside other efforts by the World Bank Group to address the global food crisis. The World Bank Board of Executive Directors is also considering initiatives to provide risk management tools to poor countries faced by drought and other catastrophes. For more information, please visit http://www.worldbank.org/html/extdr/foodprices. Saudi Arabia donates $500 million to UN World Food Programme The United Nations has announced that Saudi Arabia has offered to contribute $500 million to the United Nations World Food Programme (WFP) to help with efforts to combat the global food crisis.
In a statement issued on 23 May, UN Secretary-General Ban ki-Moon said the offer, made under the guidance of King Abdullah Bin Abdulaziz al-Saud (pictured) the Custodian of the Two Holy Mosques, means the WFP has achieved its target of $755 million to deal with the recent surge in food and fuel costs. “The Secretary-General notes that this contribution of an unprecedented size and generosity comes not a moment too soon, given the needs of millions of people dependent on food rations,” the statement added. Earlier this month the UN relief chief, Under-Secretary-General for Humanitarian Affairs John Holmes, announced that $100 million is being reserved from the Central Emergency Response Fund (CERF) to tackle the immediate issues stemming from the food crisis. Next month the UN Food and Agriculture Organization (FAO) will host a major summit at its Rome headquarters to discuss how agriculture can be harnessed to produce enough food to meet the demands of the world’s growing population. Meanwhile, the Economic and Social Council (ECOSOC) wrapped up three days of inter-governmental discussions on the food crisis with a 15-point plan outlining both short-term and long-term measures the world should take. Summarizing the discussions, ECOSOC President Léo Mérorès said in a statement that countries agreed on the need for policies that can turn “a threatening situation into an agricultural renaissance.” The discussions concluded that more and better seeds are needed for planting, fertilizers and irrigation must be improved, and transport and storage facilities can also be reformed, Mr. Mérorès said. Poor farmers also deserve more secure land tenure. The summary called for flexibility and political will so that the current Doha round of international trade negotiations can be concluded successfully, particularly regarding the questions of agricultural subsidies and tariffs in industrialized countries. The World Bank and the International Monetary Fund (IMF) were also asked to consider financial support for poor countries enduring food insecurity, such as compensatory financing mechanisms. South-South cooperation should also be expanded. UN's IT focus to be Four Main Areas A leading United Nations body working to spread the benefits of information technology (IT) plans to concentrate on four areas that most concern people around the world, the chair of that body said in Malaysia on May 18. Craig Barrett, Chair of the UN Global Alliance for Information and Communication Technologies (ICT) and Development, told the third annual meeting of the Global Alliance in Kuala Lumpur on Sunday that people were most interested about four things: getting software and hardware, connectivity, local content and ICT education.
The Global Alliance "should concentrate on programmes that focus on access," such as public-private partnerships, community centres and ICT for schools, said Mr. Barrett (pictured), who is also the Chairman of Intel Corporation, one of the world’s largest semiconductor companies. It should concentrate "on the fundamentals of getting connectivity; on local content, which can create huge local economic possibilities; and on educating people on using the technology -- and there are marvelous new education programmes out there that are reaching millions of teachers." The top UN official for economic and social affairs also called for a more focused scope. "The Global Alliance is at a turning point," said Under-Secretary-General for Economic and Social Affairs Sha Zukang, whose department hosts the Alliance. "It has the brand -- it is a big name now. It has the recognition, the platform and the networks," he told some 150 participants of the Alliance's Strategic Council. "It has launched initiatives and partnerships that are already yielding initial results. It is now important to better focus the work of the Alliance on fewer activities of strong impact."
Maximus Ongkili (pictured at right), Malaysia's Minister of Science, Technology and Innovation and co-chair of the meeting, said his country and the Global Alliance had a similar approach on the issue: both were involving all interested parties, mobilizing global partnerships, stressing the importance of human capital and emphasizing knowledge-sharing. "ICT is gaining importance in addressing climate change and the food crisis," said International Telecommunication Union (ITU) Secretary-General Hamadoun Touré, a member of the 17-person Alliance Steering Committee. "On these issues, ICT is part of the solution, not part of the problem," he said. The Alliance, which was launched in Kuala Lumpur in June 2006, had already achieved results, Mr. Barrett said, such as "improvements in education, health care and the ability of governments to communicate with their citizens." A health-care project supported by the Alliance had won an award for the best application of ICT in India, he noted. Global Alliance Executive Coordinator Sarbuland Khan said that in the past year the body had organized or co-organized some 15 events involving over 6,000 participants, including the first-ever meeting bringing together the private sector and the UN on the issue of climate change. Created by the UN Secretary-General in 2006, the Global Alliance seeks to mobilize the human, financial and technical resources required to bridge major gaps in ICT infrastructure, services and applications across the world. Its main areas of focus are education, health, economic development and online government services. The Alliance is self-funded, and has been able to raise close to US$1 million per year from governments, corporations, foundations and other sources. GoE to Receive a 150 Million USD IDA Credit for Urban Development Reported by Getachew Alemu in Addis Ababa The government of the Federal Democratic Republic of Ethiopia is going to receive a 150 million USD IDA Credit from the World Bank group in support to its urban development and urban governance programmes. The support, to be extended to a project in title urban local development project is aimed at improving the planning, delivery and sustained provision of priority municipal services and infrastructure. The focal areas will be planning, citizen’s participation planning, financial management and service delivery, and infrastructure investment. Picture (Gotera-Addis Ababa). According to Rumana Haque, the Bank’s task team leader for this project, "the project would bring together the efforts of more than six years of support to cities. Cities have most of the necessary legal and institutional frameworks in place; the urban reform agenda has been developed based on sound analysis of the existing situation and international best practices; there is a strong commitment to the reforms under the PASDEP Urban Good Governance Program; and there is an on-going program of capacity building. Cities now need to have the right motivation to implement the reforms and they need investment funds to actually deliver more and better services to their citizens. This project provides both". Under the project 19 urban local governments will be provided support, selected based on minimum readiness criteria, including Addis Ababa and Dire Dawa. Picture left (Ethio-Djibouti Rail Station-Dire Dawa). The project, which is going to be coordinated and implemented by the Ministry of Works and Urban Development (MoWUD), is supposed to enhance participatory service delivery, fiscal management, fiscal transparency, and development of investment capacity. For more on the project, have a look at www.worldbank.org/ethiopia. Japan donates $560 million to fight Killer Diseases The United Nations-backed Global Fund to Fight AIDS, Tuberculosis and Malaria has announced that Japan will donate $560 million starting next year, which takes the Asian country’s total contributions to nearly $1.5 billion. The new contribution means the Global Fund – created in 2002 – has now raised over $20 billion to invest in hundreds of different treatment and prevention programmes fighting the three diseases around the world. Programmes backed by the Fund are estimated to have already provided AIDS treatment to 1.4 million patients and TB treatment for 3.3 million people. They have also distributed 46 million insecticide-treated bed nets to prevent malaria. The Fund’s Executive Director Michel Kazatchkine praised Japan, which is now the third biggest contributor, for its ongoing support. "These new resources will help to save millions of lives, strengthen health systems in developing nations and bring the world hope that further substantial impact against the three diseases will be achieved in the coming years," he said.
The Global Fund to Fight AIDS, Tuberculosis and Malaria was created to dramatically increase resources to fight three of the world's most devastating diseases, and to direct those resources to areas of greatest need. As a partnership between governments, civil society, the private sector and affected communities, the Global Fund represents an innovative approach to international health financing. The Global Fund's purpose is to attract, manage and disburse resources to fight AIDS, TB and malaria. The fund does not implement programs directly, relying instead on the knowledge of local experts. NASA proposes US portion of the International Space Station NASA has announced an initiative to use the US portion of the International Space Station as a national laboratory. NASA is partnering with other US government agencies and the commercial sector to utilize the U.S. segment for research that is not directly applicable to NASA's mission. NASA signed agreements with the University of Colorado's Bioserve Center of Boulder on May 9 and with SPACEHAB of Webster, Texas, and Zero Gravity Inc. of Las Vegas, Nevada on May 27. A memorandum of understanding (MOU) with the National Institutes of Health in September 2007 was the first agreement between NASA and another agency for use of the station as a national lab. The U.S. Department of Agriculture's Agricultural Research Service plans to enter into an MOU with NASA for plant- and animal-related research. NASA Administrator Mike Griffin and Secretary of Agriculture Ed Schafer will participate in a formal signing ceremony May 31 at Kennedy. In May 2007, NASA sent a report to Congress describing how the U.S. segment of the space station can be used as a national lab. The report outlined possible partnerships with other government agencies and private companies to conduct research aboard the station. The report and other information about the space station's uses as a national laboratory can be found at: Petersburg Economic Forum attracts world business to Russia Reported by Alexander Tovb in Moscow
The 12th International Economic Forum started on June 6 in St. Petersburg, Russia. It brought together more than 8,000 participants. World business elite and top state officials (including presidents and ministers) have discussed a global deficit of raw materials and foodstuffs, climatic changes, integration of economies, and will try to find approaches to coordination of national interests of producers and consumers. 
Mitsubishi to invest USD 80 million in Brazilian IT Company Reported by Peter Mello in Brazil
With the partnership, the Japanese will have a vice-president on the board and they expect to increase Politec’s business outside of Brazil in such ways that they may compete with large American and Indian companies for new IT projects around the globe.
TFounded in 1970 in Brazil, Politec's 6,500 employees provide technical expertise and service excellence for customers around the world. Politec's solutions portfolio includes IT and business process outsourcing, application lifecycle management services and SAP services. The company is certified by the highest IT standards such as CMMI level 5, MPSBr level A and ISO 9001, and it has a strong delivery model and scale capacity. Other information may be found at: Russian major steel company Severstal purchase a Reported by Alexander Tovb in Moscow This is a first case when one of Russia’s major steel makers has announced plans for a complex overseas project estimated by a Russian magazine expert at about $ 1 billion to develop ore field, starting extraction of ore from the creation of necessary infrastructure (120 km railway or ore slurry pipeline, ore cargo port and so on).
Severstal has purchased a controlling stake in an iron ore deposit in Western Africa and will become a shareholder of Mano River Resources. OAO Severstal («Severstal»), one of the world's leading metals and mining companies, announced on 23 May 2008 that it has reached agreement to purchase up to a 61.5% stake in African Iron Ore Group Ltd («AIOG») which owns, through subsidiaries, the exploration rights for an iron ore deposit in the Putu Range area, Liberia (Western Africa).
In addition, Severstal will acquire a 6.29% stake in Mano River Resources Inc. (which currently controls AIOG) together with share warrants exercisable within a period of 18 months. If exercised in full, the warrants will convert into shares representing approximately 6.29% of the current issued share capital of Mano River Resources Inc. prior to giving effect to the issuance of shares to Severstal. The purchase of the AIOG controlling stake and а 6.29% stake in Mano River will be effected through Severstal’s indirect wholly-owned Dutch subsidiary, Lybica Holding B.V. Severstal will pay US$37.5 million for 61.5 % stake in AIOG and £2 million for the 6.29% stake in Mano River Resources Inc. The agreement to purchase the AIOG stake contains customary warranties and indemnities provided by Mano to Severstal and completion is subject to Mano River Resources converting its exploration license into a Mineral Development Agreement in addition to customary conditions to closing, including approval of the TSX Venture Exchange and completion of satisfactory due diligence by Severstal. According to preliminary data, it is estimated that the Putu Range deposit contains at least 500 million tons of iron ore. This number may substantially increase as a result of a detailed exploration exercise which is planned by Severstal Resurs which operates Severstal’s mining assets. Mano River Resources Inc. is a junior mining company listed on the TSX Venture Exchange (MNO) and on AIM in London (MANA). It is engaged in the acquisition, exploration and development of gold, diamond and iron ore properties located in Liberia, Sierra Leone and Guinea. Roman Deniskin, Severstal Resurs CEO, said: "The purchase of this iron ore deposit in Western Africa is a significant step in the dynamic development of the Severstal mining business. From this new region we will supply production to the European and North American markets". OAO Severstal is an international mining and steel company. Severstal focuses on high value-added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. Severstal owns mining assets in Russia, thus securing its supplies of raw materials. In 2007 Severstal produced 17.5 million tonnes of steel. Severstal Resurs manages Severstal‘s mining assets: three high-quality mining complexes in northwest Russia. In 2007 Severstal's Mining division produced 5.8 million tonnes of coal concentrate, 1.8 million tonnes of coking coal, 1.8 million tonnes of steam coal, 10.0 million tonnes of iron ore pellets and 4.7 million tonnes of iron ore concentrate. The reserves and resources of the company were estimated to be 1.8 billion tonnes of iron ore as at 1 January 2006 and 0.7 billion tonnes of coal as at 1 April 2006. For more information about Severstal look at:
Expert magazine is among Russia’s most influential and respectable business weeklies. In almost a dozen years of its existence Expert survived political and financial crises in Russia and managed to establish its position as a definite leader among its peers. Financing Development Projects discussed at World Economic Forum on Africa in Cape Town Reported by Jaycee Krüger in South Africa The Private Sector Department of the African Development Bank (AfDB) Group organized an exclusive two-day Financing for Development round table from 3-4 June 2008 at the World Economic Forum on Africa held in Cape Town, South Africa. The meeting brought together world-class private sector financial institutions that had a fruitful interaction with senior management of the AfDB Group and the World Economic Forum on Financing for Development. The meeting discussed ways and means of leveraging Development Finance Institutions (DFIs) capital to catalyze greater private sector investment. The gathering also enabled participants to discuss the African Financing Partnership, the optimal mix of concessional and non concessional lending and private sector views on the effective use of development finance institutions’ resources to catalyze private sector investment in Africa. The Financing for Development initiative is aimed at developing a public-private financing partnership between multilateral development banks, bilateral development finance institutions, global investment entities, and commercial financial institutions. The first day of the meeting highlighted the AfDB’s role in catalyzing further Public-Private Partnerships. Interactive discussions focused on engaging the private sector in increasing non-sovereign financing and funding at sub-sovereign levels, establishing investment climate capacity building as a central priority, “learning by doing transaction” programmes, using transactions as critical vehicles, strengthening investment project pipelines through project development support and providing advisory services to governments on Public-Private Partnerships (PPPs) structuring.
Issues related to financing infrastructure projects in Africa were examined and two AfDB Group projects were showcased, namely, the Mmamabula Energy Project in Botswana, presented by CIC Energy Ltd, and the Lekki Toll Road in Nigeria presented by Lekki Concession Company. At the end of his presentation, Mr. Opuiyo Oforiokuman, CEO/Managing Director, Lekki Concession Company Limited, said "Closing the huge gap that exists in the provision of essential basic infrastructure in Africa requires access to long term finance on affordable terms. Raising such finance, however, has proven quite a challenge over the years. It is important, nevertheless, that we don't give up hope, lest we allow poverty to be institutionalized here. The World Economic Forum brings together many of the people, both from Africa and beyond, who can truly make the difference. We therefore look forward to a positive outcome from this key event." Participants also had the opportunity on the second day of the meeting to focus on the Bank’s initiative on the 'African Financing Partnership', a facility developed in partnership with institutions such as the entrepreneurial development bank of the Netherlands (FMO), Proparco, a subsidiary of the French Development Agency (AFD) and the German Private Sector funding agency (DEG). Other DFIs have shown interest in participating in this Partnership, whose main purpose is to harmonize procedures and help member institutions to increase their operations without increasing the processing costs, while maintaining the highest quality standards. The most important issue discussed during the breakfast session was how to seek ways in which the public sector division of labor could better complement and leverage private sector financing." World Bank president calls for Urgent Action for 20 World Bank Group President Robert B. Zoellick has called on the world to commit to helping the twenty most vulnerable countries in the coming weeks before soaring food prices push millions more into poverty or malnutrition. Outlining three priority actions for the Rome meeting on the food crisis, Mr. Zoellick said on June 3 that the agencies and governments at the meeting should also commit to getting seeds and fertilizer out to smallholder farmers in the coming planting months and agree on an international call to scrap food export bans and restrictions.
"Globally, we have estimated that this crisis could push 100 million people into poverty – 30 million in Africa alone," Mr. Zoellick (pictured) told the summit. "This is not a natural catastrophe. It is man-made and can be fixed by us. It does not take complex research. We know what has to be done. We just need action and resources in real-time." Mr. Zoellick said the World Bank had worked with the U.N.’s World Food Program and Food and Agriculture Organization to assess the needs of 28 countries with another 15 such exercises still ongoing. This work had identified 20 countries which require immediate assistance by the time of the Group of Eight meeting in July. "This means safety net support, school feeding, food for work, maternal and child programs, conditional cash transfers and budget support," said Mr. Zoellick. "This can be done through the WFP, UNICEF, the FAO and Development Banks. After the direct food assistance of the WFP, this is where funding should go." Another priority in the coming months was getting seeds and fertilizers to those developing countries where smallholder farmers could expand production this season. Fifteen priority countries had been identified by Africans for fast-track distribution. As a third priority Mr. Zoellick said 28 countries had imposed food export bans. These and other restrictions encouraged hoarding and drove up prices, hurting the poorest people. He urged countries to immediately lift restrictions and taxes for humanitarian food purchases and transportation, and for food shipments to less developed and fragile countries. Looking ahead to the G8 Summit in July, Zoellick said leaders should address the longer-term challenge of doubling global food production over the next 30 years. Mr. Zoellick has outlined measures to tackle the food crisis in a column published in the Financial Times newspaper. His 10 point plan calls for boosting developing country agricultural products and productivity so developing countries could benefit from the growing demand for food. As part of this longer-term strategy, agricultural research could triple yields and new risk management tools would be deployed to protect poor farmers. Easing bio-fuel subsidies, mandates and tariffs, and closing the Doha trade round should also be part of these longer-term measures. To support this agenda, the World Bank has created a new Global Food Crisis Response Facility to fast-track $1.2 billion to address immediate needs arising from the food crisis, including $200 million of grants for especially vulnerable countries. Grant operations have been approved for Haiti, Djibouti and Liberia; operations are being processed for Togo, Tajikistan and Yemen. The Bank announced that the World Bank Group will expand assistance for agriculture and food-related activities from $4 billion to $6 billion over the coming year. The 87th ACP Council of Ministers and the 33rd ACP-EU joint Council of Ministers meeting in Addis Ababa Reported by Getachew Alemu in Addis Ababa Addis Ababa is busy right now hosting the 87th African, Caribbean and Pacific(ACP) council of ministers and the 33rd ACP-EU joint council of ministers meeting to be held from June 8-13, 2008 . The main discussion points of the meeting are reported to be development and trade cooperation between the ACP countries and EU. While opening the meeting, Ethiopian Minster of Finance and Economic Development Economic Development, Sufian Ahmed, has said that " the economic slow down of some developed countries is also in one way or another impacting the development of endeavors in developing countries". He, also, has underlined the importance of coupling development with environmental protection. While mentioning about Ethiopia's progress in this regard, he has confirmed that the country is making a big step forward in implementing its 2nd medium-term development plan, PASDEP (Plan for Accelerated and Sustained Development to End Poverty). Mohammed Ahmed, President of the ACP council, on his part, has described effective use of development aid, ensuing food security, and economic issues with EU to be the focal points of the meeting. Another point mentioned to be a discussion point in the meetings is the state of play, implications, and the way forward for Economic Partnership Agreements (EPAs). Further more, reports on asylum, migration and mobility, Banana, Sugar, Cotton and Development finance will be consulted. A total number of 79 states are represented with their ministers and senior officials in the meeting, which is being organized by the Ministry of Finance and Economic Development of Ethiopia. For more on the meeting, take a look at http://www.mofaed.org/ACP.asp. .Planning partnership guide to speed up new Reported by Miles Shepherd in London A new guide to speed up planning partnerships between councils and developers was published by Planning Minister, Iain Wright today. The new 'step by step guide' sets out a logical process for identifying what should be done, when and by whom to reduce problems and speed up new major developments through the planning system. (Many projects are held up for years because of the complexity of this system).
The voluntary Planning Performance Agreements (PPAs) between a local planning authority and an applicant provide a project management framework for handling large and complex planning applications.
Planning Minister Iain Wright (pictured at left) visited the Stockwell Park PPA pilot scheme in Brixton during first week of June, where he discussed the benefits of having a PPA with Council staff and the developer, the Network Housing Group, and heard how it helped agree the 550 new home development.
Andrew Whitaker (pictured at right), Head of Planning, Home Builders Federation Ltd welcomed the development of PPAs. He said: "PPAs are a positive tool for genuine partnership working between the private and public sectors ensuring that, for what are often complex development projects in an ever increasingly complex policy environment, the planning process becomes more transparent and timely."
According to Ken Sheard, chair of APM’s Planning SIG (specific interest group), “For project managers, this represents real progress for large scale projects with significant planning approval requirements. The ATLAS Guide provides the potential to address some of the uncertainty currently in the planning process and should provide much better clarity, reduce risk and minimise potential delay – we have no doubt it will be welcomed by everyone involved.” Sunrise outsources operations and projects to Reported by Alexander Matthey in Switzerland Sunrise, the second largest telecommunications provider in Switzerland, is outsourcing the operation of its mobile, fixed and data networks to Alcatel-Lucent as of August 1, 2008. This move is intended to allow Sunrise to ensure long-term deployment and management of the network as well as significantly save operational costs. The contract includes the transfer of 290 employees. The value of the agreement is approximately 340 million euros over 7 years, depending on the final scope of the project. According to the news received by PMForum, Sunrise decided, after careful consideration, to outsource primary components of its network to Alcatel-Lucent. The contract sets the stage for the Sunrise telecommunications network to be maintained in a cost effective, high quality manner and also ensures the development and fast deployment of new user-oriented services and solutions. Sunrise will continue to handle network planning and customer service. The network infrastructure including all telecommunication systems remains totally owned by Sunrise. Sunrise chose Alcatel-Lucent because of the company’s significant outsourcing experience in Switzerland and worldwide. Network operations and outsourcing for carriers and enterprises is a strategic area for Alcatel-Lucent’s services business. Alcatel-Lucent will leverage the experience gained from designing, deploying, operating, maintaining and expanding more than 70 networks supporting more than 140 million subscribers worldwide.
"We are pleased that with the Sunrise network operations outsourcing contract we are now serving a total of 3.6 million Swiss customers. The selection of Alcatel-Lucent demonstrates the trust that Sunrise has in our expertise and service quality,” said Andy Williams, (pictured) President of Alcatel-Lucent’s services business. "As our business continues to grow, locally and internationally, we look to continue building our managed services capabilities, and therefore develop an even broader knowledge base.” Sunrise is the second-largest telecommunications provider in Switzerland. Over 2.2 million customers use Sunrise services in the areas of mobile telephone communications, fixed network and Internet. The mobile network, based on GSM, EDGE, UMTS and HSDPA, supplies over 99% of the population with mobile telecommunications services, permitting transmission rates of up to 3.6 Mbps. A high-performance glass fiber network with a total length of over 8,900 km makes possible an all-encompassing offer of high-value language and data services. By 2010 Sunrise will supply 80% of households with its own broadband services. Sunrise is a brand of Sunrise Communications AG, the share capital of which is owned 100 % by TDC A/S. Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has an experienced global services team, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved revenues of Euro 17.8 billion in 2007 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com. World Bank Board approves US$40 million for Projects in Madagascar The World Bank has announced an additional financing of US$40 million to the Republic of Madagascar for the Integrated Growth Poles Project. The proposed additional financing would support the project to complete originally-planned activities that have remained un-funded to date, in three key areas:
The overall objective is to help provide an adequate business environment to stimulate and lead economic growth in three regional poles in the areas of Antananarivo-Antsirabe, Nosy Be and Taolagnaro (Fort Dauphin). The project became effective in September 2005 and is scheduled to close on December 31, 2010. The original credit amount was equivalent to US$129.8 million. “The project performance is satisfactory both in terms of achievement of the development objectives and implementation progress” said Ganesh Rasagam, the World Bank Task Team Leader for the project. The project is being supported directly by the private sector, especially the mining investor, Rio Tinto/QIT Minerals Madagascar (QMM) in Fort Dauphin. Other development partners, involved both directly and indirectly, include the United Nations Development Program (UNDP), the United Nations Environment Program (UNEP), the World Health Organization (WHO), the European Union, the Millennium Challenge Account, the African Development Bank and the French Agency for Development. According to Robert Blake, the World Bank Country Manager for Madagascar, “this ability to raise partnerships and the very high level of Government ownership and commitment towards the project’s objectives are real strong assets.” For more information about the World Bank’s activities in Madagascar visit: http://www.worldbank.org/madagascar. Infrastructure 2008 - new ULI report outlines Global Infrastructure Spending and Needs According to a new report published by the Urban Land Institute (ULI) entitled Infrastructure 2008: A Competitive Advantage, the United States needs to overhaul its outdated regional infrastructure planning process and create a viable federal framework, or face compromising its ability to compete in a global marketplace. The new report was co-published by the Urban Land Institute and Ernst & Young. Infrastructure 2008: A Competitive Advantage provides a snapshot of current and planned infrastructure investment in a variety of categories across the globe, with an in-depth look at the United States, China, Japan, India and Europe. The second annual report also touches on the infrastructure needs in several of the largest metropolitan areas in the USA, highlighting the consequences of inadequate federal policy and guidelines that have resulted in “a mish-mash of disconnected regional infrastructure management approaches.” The report says the United States is headed toward decline, and needs to wake up to the dire state of its infrastructure, but cautions that “political will may only emerge when people face imminent reward or immediate risk–a bridge collapse or a burst levee, and maybe not even then.” The report estimates that the U.S. has at least a $170 billion annual funding gap in addition to its outmoded land use and infrastructure models. “America heads for a crisis in the next 10 years if nothing is done,” warns the report. “It is increasingly clear that the infrastructure funding gap will need to be addressed with public/private partnerships,” says Dale Reiss, Global Director of Real Estate at Ernst & Young in New York City. “If the U.S. fails to embrace this model, it could lead to our economy falling behind more of our global competitors.” The report identifies four stages of the infrastructure lifecycle and identifies the U.S., Canada, and Australia as “coasting on prosperity.” India, China and the United Arab Emirates are in the “growth and development” stage. The United Kingdom, the European Union, Spain, Singapore, Japan, South Korea and Panama are in the “retool and revamp” stage, while Mexico, Brazil, the Czech Republic, and Russia are in the “inadequate investment” stage. Some of the worldwide trends and issues discussed in the report include:
Expansion of infrastructure privatization –
The report also recommends new funding strategies, including: user fees; interstate toll roads; funding based on reducing vehicle miles traveled; subsidies to encourage infill housing and commercial development served by mass transit in pedestrian-friendly communities; stop subsidizing sprawl; and stop tapping user fees to make up for other shortfalls. Copies of the report are available at www.uli.org/reports/i19.
The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has more than 40,000 members representing all aspects of the land use and development disciplines. Ernest & Young, a global leader in professional services, is committed to restoring the public’s trust in professional services firms and in the quality of financial reporting. Its 114,000 people in 140 countries pursue the highest levels of integrity, quality, and professionalism in providing a range of sophisticated services centered on our core competencies of auditing, accounting, tax, and transactions. Further information about Ernst & Young and its approach to a variety of business issues can be found at www.ey.com/perspectives. Up in the Air! GAO sustains Boeing Bid Protest on The Government Accountability Office (GAO) announced on June 18 that it has sustained the Boeing Company's protest of the Department of the Air Force's award of a contract to Northrop Grumman Systems Corporation for KC-X aerial refueling tankers. Northrup Grumman with EADS (European parent of Airbus) as partner was awarded the record $40 billion contract to supply the tankers in February 2008. Boeing challenged the Air Force's technical and cost evaluations, conduct of discussions, and source selection decision. “Our review of the record led us to conclude that the Air Force had made a number of significant errors that could have affected the outcome of what was a close competition between Boeing and Northrop Grumman. We therefore sustained Boeing’s protest,” said Michael R. Golden, the GAO’s managing associate general counsel for procurement law. “We also denied a number of Boeing’s challenges to the award to Northrop Grumman, because we found that the record did not provide us with a basis to conclude that the agency had violated the legal requirements with respect to those challenges.” The GAO has recommended that the Air Force reopen discussions with the offerors, obtain revised proposals, re-evaluate the revised proposals, and make a new source selection decision, consistent with the GAO’s decision. The agency also made a number of other recommendations including that, if the Air Force believed that the solicitation, as reasonably interpreted, does not adequately state its needs, the Air Force should amend the solicitation prior to conducting further discussions with the offerors; that if Boeing’s proposal is ultimately selected for award, the Air Force should terminate the contract awarded to Northrop Grumman; and that the Air Force reimburse Boeing the costs of filing and pursuing the protest, including reasonable attorneys’ fees. By statute, the Air Force is given 60 days to inform the GAO of the Air Force’s actions in response to GAO’s recommendations. The GAO decision should not be read to reflect a view as to the merits of the firms’ respective aircraft. Judgments about which offeror will most successfully meet governmental needs are largely reserved for the procuring agencies, subject only to such statutory and regulatory requirements as full and open competition and fairness to potential offerors. The GAO bid protest process examines whether procuring agencies have complied with those requirements. The 69-page GAO decision was issued under a protective order, because it contains proprietary and source selection sensitive information. The GAO has directed counsel for the parties to promptly identify information that cannot be publicly released so that GAO can expeditiously prepare and release, as soon as possible, a public version of the decision. Although the Air Force intends to ultimately procure up to 179 KC-X aircraft, the solicitation (No. FA8625-07-R-6470) provided for an initial contract for system development and demonstration of the KC-X aircraft and procurement of up to 80 aircraft. The solicitation provided that award of the contract would be on a “best value” basis, and stated a detailed evaluation scheme that identified technical and cost factors and their relative weights. The agency received proposals and conducted numerous rounds of negotiations with Boeing and Northrop Grumman. The Air Force selected Northrop Grumman’s proposal for award on February 29, 2008, and Boeing filed its protest with the GAO on March 11, supplementing it numerous times thereafter. In accordance with GAO’s Bid Protest Regulations, GAO obtained a report from the agency and comments on that report from Boeing and Northrop Grumman. The documentary record produced by the Air Force in this protest is voluminous and complex. The GAO also conducted a hearing, at which testimony was received from a number of Air Force witnesses to and explain the record. Following the hearing, GAO received further comments from the parties, addressing the hearing testimony as well as other aspects of the record. Information about GAO’s bid protest process can be found at http://www.gao.gov/legal/aboutbid.html.
The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for the US Congress. Often called the "congressional watchdog," GAO investigates how the federal government spends taxpayer dollars. The head of GAO, the Comptroller General of the United States, is appointed to a 15-year term by the President from a slate of candidates Congress proposes. Gene L. Dodaro became Acting Comptroller General of the U.S. Government Accountability Office on March 13, 2008, succeeding David M. Walker, who appointed him upon resigning. Mr. Dodaro will serve in this position until the President nominates and the Senate confirms a successor from a list of candidates proposed by the Congress. The GAO’s mission is to support the Congress in meeting its constitutional responsibilities and to help improve the performance and ensure the accountability of the federal government for the benefit of the American people. We provide Congress with timely information that is objective, fact-based, nonpartisan, non-ideological, fair, and balanced. For more about the GAO, visit http://www.gao.gov/about/index.html UN Food Agency Launches Four-Year Plan for Global Food Crisis The United Nations World Food Programme (WFP) has announced a new four-year strategic "This strategic plan marks a revolution in food aid that supports local markets in breaking the "I call this our 80-80-80 solution," she told WFP’s Board members gathered in Rome this month. "80 per cent of our cash for food is spent in the developing world, 80 per cent of our ground transport is procured in the developing world, and 80 per cent of our staff is hired locally in the developing world." WFP spends more than $2 billion a year on food, transport and staff in the developing world. The new strategic plan emphasizes life-saving emergency aid, such as for 3 million vulnerable people in Darfur, but it also focuses on prevention, local purchase of food, and using targeted cash and voucher programs when food is available locally but not accessible for the hungry. The announcement of WFP’s four-year strategic plan follows last week’s High-Level Conference on World Food Security in Rome, where world leaders gathered to discuss hunger and agriculture development issues against the backdrop of high global food and fuel prices. The tools laid out in the plan include early warning systems and vulnerability analysis, as well as preparedness and disaster reduction and mitigation, and effective emergency response in life-saving situations. The plan also includes spending to strengthen smallholder farming, local transport and communication networks, as well as school meals and support for mother-and-child health and nutrition programmes. Last year, WFP used its cash resources to purchase $612 million worth of food in 69 developing countries. Established in 1962, the World Food Programme (WFP) is the food aid arm of the United Nations system. Food aid is one of the many instruments that can help to promote food security, which is defined as access of all people at all times to the food needed for an active and healthy life. Bridge to Somewhere: New Brookings Institute Policy Paper addresses American Transportation for the 21st Century The Brookings Institute has announced a major new policy paper with implications for transportation planners and project organizations in the United States. The paper is by Robert Puentes, Fellow, Metropolitan Policy Program at the Brookings Institute in Washington, DC.
According to the announcement "If transportation policy is going to achieve critical national objectives around economic competiveness, environmental sustainability, and social equity in an era of fiscal constraints it will require a 21st-century transportation vision." By concentrating reforms on three major policy areas - federal leadership, empowerment of metropolitan areas, and optimization of the program - federal transportation policy can move from the anachronistic structure that exists today to something that actually works for the nation and metropolitan America. Major metropolitan transportation challenges are driving the increasing demand for policy reform. Roads and transit systems are aging and in dire need of repair. Tens of thousands of bridges are structurally deficient. Traffic, especially in and around the nation's metropolitan ports and freight corridors, and lack of choices to avoid these delays, is pervasive. Simultaneously, environmental and energy sustainability loom large along with increasing concerns about the cost of transportation-related items-such as gasoline. The result: physical neglect, congestion, and environmental degradation now seriously compromise the efficiency of a network crucial to the national interest, with a price tag of needs conservatively estimated in the hundreds of billions of dollars.
While there is a pervasive desire to invest, the real challenges facing the network are far more fundamental. Absent federal leadership results in no overarching vision, goals, or guidance. Outdated policies means that federal transportation policy has only haltingly recognized metropolitan areas' centrality to transportation outcomes, and continues to favor roads over transit and other non-motorized alternatives. And the lack of performance data and accountability means the federal grantees are underperforming and failing to maximize efficiencies. Transportation is a means to an end, not the end itself. The nation should settle for nothing less than evidence-based, values-driven decision making. This means the development of a three-pronged strategy for the national transportation program:
The full policy brief can be downloaded at http://www.brookings.edu/papers/2008/~/media/Files/rc/papers/2008/ World Bank gives $40 million to Palestinian Authority Palestinian Prime Minister Salam Fayyad signed an agreement with the World Bank on 9 June 2008 for $40 million in budget support. This support falls within the framework of Palestinian Reform and Development Plan (PRDP) for 2008-2010
Budget support is a central component of ongoing World Bank efforts to support the PRDP, which was presented to the international donor community on December 17, 2007. An additional $110 million has been disbursed since April 2008 to the Palestinian Authority's (PA) Central Treasury Account through the PRDP Trust Fund (PRDP-TF), to which Norway, the UK, Australia, Finland and France have contributed. "This grant aims to support the PA’s efforts to accelerate the implementation of reforms described in the PRDP, especially those aimed at strengthening its fiscal position and improving public financial management, “said David Craig, World Bank Country Director for the West Bank and Gaza. “These reforms are critical for continued international donor support and will serve as fundamental building blocks of the future Palestinian State," he further added. The World Bank’s ongoing portfolio in West Bank and Gaza consists of 13 projects aiming at improving living conditions, including water and sanitation, education, solid waste, municipal finance and basic social services. The Bank is also supporting activities aimed at NGO capacity building. For further information on the World Bank Program in West Bank and Gaza, visit: www.worldbank.org/ps. World Bank launches Guide & Website to help fight Global Corruption in Business and on Projects Recent research shows that global corruption can add as much as 20% - 25% to the costs of public procurement but many companies are still faced with the dilemma of either paying bribes to win business or withdrawing from high-risk markets.
To help resolve this global problem, the World Bank Institute has released "Fighting Corruption through Collective Action - A Guide for Business." Created to help companies fight back against the insidious impacts of corruption, the Guide, and its companion web portal, outlines proven methods to fight marketplace corruption through Collective Action between business and other stakeholders. Organized by the World Bank Institute, the coalition is made up of NGOs and multilateral organizations including United Nations Global Compact, the Center for International Private Enterprise, and Transparency International, as well as several private companies. The website was developed as an anti-corruption resource for business. It explores and details the constructive role that business can play in fighting corruption and how this can be done jointly with other companies and stakeholders – an approach called "zollective Action."
Organizations and individuals are already successfully using Collective Action today, working with business associations, civil society, media, government departments and other stakeholders. The results are increased competition, improved transparency and less corruption in many geographies and business sectors. Society has benefited, as have the businesses which have been provided more reasonably priced and higher quality goods and services – with the costly and inefficient effects of corruption reduced or eliminated. Summaries of some of these past and present Collective Action situations and types are provided in the website. They provide valuable insights into the workings of partnerships against corruption and the issues that have to be considered from the very beginning. For more information or to download the guide, visit http://info.worldbank.org/etools/antic/index.asp World Bank funds Projects + Project Management in Ghana PalWorld Bank announced on 26 June 2008 a US$22 million additional credit facility to the Government of Ghana under the Community Based Rural Development Project (CBRDP). The objective of the Project is to strengthen the capacity of rural communities to enhance their quality of life by improving their productive assets, rural infrastructure and access to key support services from private and public sources.
Budget The Project also provides critical resources to respond to priority works in the three northern regions most affected by last year’s floods. The Project will specifically support a number of public works projects, institutional strengthening and project management. Public works projects will include (i) agricultural development; (ii) human and social development; and (iii) natural resource management. A wide range of eligible public works will be supported throughout the country, which, to date have concentrated on primary schools, wells, feeder roads, health and nutrition facilities, toilets, and markets. Of an estimated US$18.4 million for this component, US$6.5 million will go toward reconstruction efforts in the north of the country in response to last year’s floods, and US$11.9 million will be channeled through District Assemblies in support of decentralized service delivery. The project will also provide funding for Institutional Strengthening and Capacity Building of communities, District Assemblies and national authorities. Community based organizations, local, regional and national Government institutions will be trained to plan, manage and oversee public investments to help ensure more cost-effective service delivery to rural communities as part of the Government’s overall decentralization efforts. Besides on-going training in local level planning, procurement, financial management and oversight of works activities, the Project will also support training in contracts management and rapid results methodologies for selected flood-affected communities and Area Councils. Particular focus of this capacity building will be on Area Councils and Districts either affected by the floods in the north, newly created, or where on-demand support is indicated, there may also be need for support to regional and national level institutions Of particular note, funding is specifically provided for project management for expanded work in the north, and to support management structures and systems under the Ministry of Local Government, Rural Development and Environment. The project management will be provided through zonal offices in support of Regional Planning and Coordination Units under the Regional Ministers. This support will continue until the revised Project closing date of June 30, 2010.
The World Bank is a source of financial and technical assistance to developing countries around the world. It consists of two unique development institutions owned by 185 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Each institution plays a different but supportive role in the World Bank’s mission of global poverty reduction and the improvement of living standards. The IBRD focuses on middle income and creditworthy poor countries, while IDA focuses on the poorest countries. Together they provide low-interest loans, interest-free credit and grants to developing countries for education, health, infrastructure, communications and many other purposes. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 185 member countries. Established in 1960, the IDA aims to reduce poverty by providing interest-free credits and grants for programs that boost economic growth, reduce inequalities and improve people’s living conditions. For more information, visit www.worldbank.org. For more information on the World Bank’s activities in Ghana please visit: www.worldbank.org/ghana. |
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