Institutional Arrangements

PCEEP shall follow the following institutional arrangements at the Policy and Implementation levels.

2.1      Implementation Arrangements

The structure of the Project’s implementation arrangements is shown in the figure below. The specific roles and responsibilities of the principal organizational units in DENR for implementation of the project are as follows:

a.       DENR-Office of the Secretary (DENR-OSEC) shall perform the following:

·         Endorses the Global Environmental Facility (GEF) and Multi-Lateral Fund (MLF) grant agreements to the Department of Finance (DoF).

·         Signs the contracts for goods and consultancy services procured under the project with suppliers and service contractors, except for new chillers.

·         Designates the authorized signatories for the two (2) separate Special/Designated Accounts

·         Signs or designates the authorized signatory for the sub-grant agreements with chiller owners.

·         Adopts the Governance and Anti-Corruption Action Plan (GACAP). The GACAP is found in Annex 26.

b.      Foreign-Assisted and Special Projects Service shall perform the following functions:

·         Open and manage the two (2) separate Special/Designated Project Accounts with the Authorized Government Servicing Bank (AGSB)

·         Prepares Withdrawal Application for replenishments/liquidation of Designated/Special Account Fund and for direct payment for submission to the World Bank.

·         Reviews the Statement of Expenditures prepared by the PMU, for submission to the WB.

·         Prepares Special Budget Request (SBR) for submission to the Department of Budget and Management (DBM) as basis for the release of SARO for grant funds.

·         Initiates, in coordination with the PMU, the preparation of annual procurement plan for submission to the WB for NOL.

·         Conducts the procurement of goods and consultancy services in accordance with the Grant Agreement (GA) between the GOP (DENR) and the World Bank.

·         Reviews disbursement vouchers prepared by PMU together with supporting documents before endorsing the same to FMS.

·         Reviews the Interim Financial Report (IFR) submitted by PMU for submission to the WB.

·         Monitors and assess the Project’s compliance with the grant agreements, contracts and other similar instrumentalities.

·         Monitors and evaluate the progress of Project relative to its operational guidelines, targets, implementation plans and schedules.

·         Reviews and facilitate submission of pertinent documents as required by the DENR and other oversight agencies.

·         Participates in the review mission conducted by funding institution.

c.       Environmental Management Bureau (EMB)-Project Management Unit (PMU). The EMB-PMU, with the assistance of the individual consultants, shall be responsible for the day-to-day operation of the Project and shall perform the following functions:

·         Markets the Project and conducts effective outreach to COs to enhance project participation in support of chiller manufacturers, suppliers and ESCOs which will act as primary marketing force to promote chiller replacement.

·         Conducts the screening of COs, reviews sub-grant applications, verifies the eligibility of the CO’s old chiller to enroll in the Project and supervises the implementation of sub-projects.

·         Prepares and facilitates the approval of SGAs which will describe the terms and conditions of the Project, including the level of funding, disbursement schedules, and other obligations of CO.

·         Adopts the established Measurement and Monitoring Protocols in the conduct of monitoring and evaluation of COs and other Project activities.

·         Witness and certifies the final dismantling and destruction/disposal of compressor of the old chiller.

·         Tracks data on energy savings, energy consumption of baseline equipment and of the replacement, monitor performance of new chillers according to pre-set performance parameters and analyze the data.

·         Establishes the necessary database for the Project.

·         Prepares the request for payment and supporting documents for payments of subsidy and financial incentives.

·         Ensures the effective and timely implementation of the Project based on the approved Operations Manual and Project Implementation Plan.

·         Prepares and submits an annual chiller replacement plan and updates the survey of identified COs.

·         Prepares and submits to FASPS the annual Work and Financial Plan and Project Procurement Plan.

·         In coordination with FMS, prepares quarterly IFR for submission by FASPS to the Bank.

·         Prepares and submits to FASPS the Annual Physical and Financial Accomplishment Reports for subsequent submission to the Bank and other oversight agencies.

·         Keeps and maintains records of all Project-related documents.

·         Coordinates Project activities with concerned implementing partners of the Project.

·         Prepares the technical specifications and supervise procurement of goods

·         Prepares the Terms of Reference (TOR) of project consultants.

·         Supervises and evaluates the performance of individual consultants and support staff engaged under the Project.

·         Document lessons learned and experiences gained from the Project.

d.      EMB Legal Division

·         Reviews all SGAs to be executed by the EMB and COs.

·         Reviews all MOAs to be executed by the EMB and Chiller Suppliers

·         Reviews any proposed amendment, modification, addition, or deletion of any provision of the SGAs, MOA, etc.

e.      Finance and Management Service (FMS). The FMS shall have over-all responsibility on the financial management of the Project.

·         Checks the available balance against the budget disbursement ledger and post the obligated amount.

·         Prepares the Obligation Requests for disbursements and forwards the same to DENR-FASPO for approval.

·         Signs the Obligation Requests for payments of Project-related expenses.

·         Prepares quarterly financial report of operation of the Project.

·         Monitors the status of funds of the designated accounts of the Project.

·         Prepares statement of Statement of Sources and Uses of Funds (SSUF).

·         In coordination with FASPS, prepares designated account reconciliation statement.

·         Reviews and signs statement of expenditures of the three (3) separate Special/Designated Accounts.

·         Prepares monthly Special Bank Reconciliation Statement.

·         In coordination with FASPS, monitors compliance of COA recommendations.

·         Certifies the availability of funds for contracts, Purchase Orders, and all other claims.

·         Processes payment of the subsidy of Chiller Owners as endorsed by FASPS.

·         Maintains the books of accounts in accordance with generally accepted state accounting principles.

·         Participates in the conduct of annual inventory count of fixed assets procured under the Project.

·         Facilitates request of replenishment of Project funds from World Bank.

·         Processes and approves project-related disbursement vouchers.

·         Maintains the books of accounts of the project.

·         Submits the regulatory financial reports to oversight government agencies.

·         Prepares and signs the checks corresponding to the approved Disbursement Vouchers.

·         Requires official receipts to acknowledge payments received.

·         Prepares Advice of Checks Issued and Cancelled for submission to LBP.

Prepares Reports of Checks Issued and submits regularly the same to Accounting Division, copy furnished the PMU.

For any complaints or grievances related to the implementation of the project, please contact:

Dept. of Environment and Natural Resources

DENR Compound, Visayas Avenue, Diliman, Quezon City

Tel. No. : (+632) 929-6626

                   Legal Department

 Grievance Mechanism
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