MSI Policy Implementation Plan & Operations Manual

Project Management: Budget Planning, Procurement, and Financial Management
Responsibilities of the UNCST, Grantees and Host Institutions

4.1 Introduction

The Financing Agreement between the World Bank and the Government of Uganda stipulates that the resources for the MSI, as with all World Bank-financed projects, may only be used for the specific purposes of the project as outlined in the project documents, and must be used with due consideration for economy and efficiency. As the implementing agency, the UNCST has the primary responsibility to assure overall compliance with this stipulation. The World Bank has the responsibility of supervising the project for the purposes of determining that it is meeting its objectives and complying with all relevant rules and procedures.

Project management requires careful ex-ante planning to assure that funds are being dedicated to the purposes of the project at the appropriate time. The project will use a system of Annual Work Plans and Budgets (AWP/B) to accomplish this end. The UNCST will produce and Annual Work Plan and Budget for each fiscal year or portion of a fiscal year for which the project is active. The AWP\B shall be submitted to the Bank for no objection. The UNCST’s AWP/B will incorporate sub AWP/B’s produced by other implementing partners, such as the UIRI and grant recipients.

Under the MSI, work planning, budget planning, and procurement planning will be integrated so as to be consistent and mutually-supporting. The “physical goals” for project progress will determine the activities to be carried out in a given period. These activities will be budgeted for, and due attention will be given to procuring all goods, works, services, and consultants’ services in accordance with the relevant procedures. UNCST senior management initiates this process by planning for the physical goals for the upcoming period. Financial management and procurement staff contribute to and carry out the planning and the execution of the plans according to the procedures and regulations described here, and in ancillary documents such as the UNCST Financial Management Manual. The cluster of activities involved will be referred to as Work Planning, Budgeting, Financial Management, and Procurement Processes, or WPBFMP.

4.2 Central and decentralised responsibilities for Work Planning, Budgeting, Financial Management, and Procurement

The UNCST has overall responsibility for WPBFMP activities, either for those activities it carries out directly, or in consolidating and assuring the quality, consistency, and compliance of WBPFMP activities carried out by UIRI and by grant recipients.

UNCST will verify the capacity for these two functions at the host institution through standardized financial management and procurement capacity assessments. If it is found to be adequate, the host institution will carry out the functions. If the host institution is determined by UNCST not to have the capacity, the central financial management and procurement unit at the UNCST will carry out the function for the grantee. In the text below, the party responsible for financial management and procurement, whether host institution or UNCST, will be referred to below as the “grant administrator.” Host institutions must have adequate capacity in both financial management and procurement in order to administer grants; the functions will not be split between institutions. In certain circumstances, the UNCST may make training and capacity building available to institutions so they can acquire the capacity needed to administer grants. In cases where the host institution is the grant administrator, the institution will open up an account in its name and the name of the project. UNCST will make a deposit into this account equal to the expenditures for a six month period. The grant administrator will carry out procurement and financial administration in accordance with the AWP, and furnish quarterly reports to the UNCST. Upon receipt of reports and verification of correct use of funds, the UNCST will make a deposit into the account for the next six month period.

4.3 Work Planning, Budgeting, Financial Management, and Procurement Processes

The WPBFMP processes will be carried out at different levels and by different actors. The responsibilities of UNCST, UIRI, and other grant administrators are described below:

4.3.1 WPBFMP for overall Project activities and for activities carried out by UNCST.

The project has an overall budget for its implementation period. This budget is contained in Table 1 above. Each year, when the AWP/B is submitted, the overall budget will be updated to include the actual versus planned expenditures to date. If there is need for the UNCST to propose any changes to the project’s overall budget, based on implementation experience, it may submit these along with the detailed rationale for the proposed changes for the Bank’s no objection, along with the AWP/B for the upcoming year.

The project has a Procurement Plan. The Plan is included in this PIP as Annex Five. The Procurement Plan is consistent with and supports the plans for physical progress of the project. Each year, when the AWP/B is submitted, the Procurement Plan will be updated to include the actual versus planned dates for all procurement processes undertaken. If there is need for the UNCST to propose any changes or additions to the Procurement Plan, based on evolving needs of the project, it may submit these along with the detailed rationale for the proposed changes for the Bank’s no objection, along with the AWP/B for the upcoming year.

The Financing Agreement requires the UNCST to furnish the Bank with Interim Financial Reports (IFRs) every 90 days. For the sake of consistency and simplicity, the IFRs will have the same format as the AWP/Bs. The main difference between the AWP/Bs and the IFRs are: (i) the AWP/Bs are ex-ante, and state the planned expenditures, etc., while the IFRs are ex-post, and state the planned, actual, and variances, and; (ii) the AWP/B is produced and submitted to the Bank annually, while the IFRs are produced and submitted to the Bank quarterly.

For both AWP/Bs and IFRs, the format is the same. There are four main sections [The template for the AWP/B’s and IFRs is attached as Annex Six]. These are:

a. Discussion of Project Physical Progress. This is a narrative section which explains either what the project intends to do (as AWP/B) or what it has done (as IFR). This section is organized by project components subcomponent and should contain one or two short sentences describing either the main goals (as AWP/B) or main accomplishments (as IFR) for the period. In describing activities as IFRs, this section should also provide a narrative explanation of any significant variations between planned and actual expenditures that were recorded in the other sections of the IFR.

b. Sources and Uses of Funds. Describes what resources are expected to become available to the project during the period (as AWP/B) or what has become available (as IFR).

c. Uses of Funds by Project Activity. Provides in-depth, micro-level information on either planned expenditure (as AWP/B) or actual expenditures and variances (as IFR). It requires line item reporting at various “levels of analysis”, supporting schedules and comparison of actual versus planned expenditures. The Projected Cash Withdrawals and Projected Cash Forecast shall be determined by an analysis of the Special Account Statement.

d. Output Monitoring Report—Contract Management

This includes narratives on progress with procurement and contract expenditures on goods, works and services as well as administrative issues such staff turnover affecting procurement as outline below:

i. Contract Expenditure Report—Consultant Services. Provides details of the progress of all active consulting contracts. This should note the extent to which work has been accomplished, whether work is on schedule (and if not, why), what payments have been made, and what the expected outputs and payments are for the upcoming period.

ii. Contract Expenditure Report—Goods, Works, Services. Provides details of the progress of all active contracts for goods, works and services. This should note the extent to which work has been accomplished, whether work is on schedule (and if not, why), what payments have been made, and what the expected outputs and payments are for the upcoming period.

iii. Procurement Process Monitoring (Consultants Services). Provides details on the progress of all processes underway for selection of consultants, including the dates when various aspects of the processes were completed, and when upcoming processes are expected to be completed. This uses the same format of the Procurement Plan, but may also have a narrative section appended.

v. Procurement Process Monitoring (Goods, Works, and Services). Provides details on the progress of all processes underway for procurement of goods, works, and services including the dates when various aspects of the processes were completed, and when upcoming processes are expected to be completed. This uses the same format of the Procurement Plan, but may also have a narrative section appended.

iv. Procurement Staffing and Issues: This section notes any changes to staff (staff leaving or new staff joining), any capacity issues (training received) or any major issues that have arisen during the period, which should be brought to the attention of the World Bank.

The specific responsibility for the provision of Financial Management Services for the project will fall on the Head of Finance and Accounts at the UNCST Secretariat. This includes (i) ensuring the timely provision of necessary finances for the project; (ii) management and documentation of all funds; (iii) accounting for project funds; (iv) preparing quarterly Interim Financial Reports; (iv) preparing project management information; (v) providing financial technical advice; and (vi) preparing annual budgets; as required by Government, management, IDA and other stakeholders.

The UNCST Financial Management System (FMS) is compliant with and capable of generating financial tables of the quarterly Interim Financial Reports (IFRs) directly from the UNCST computerized accounting system. The system has been integrated into the overall UNCST chart of accounts . – including quarterly and annual – financial reports formats on the operations of the Project.

The FMS will produce, as a minimum, the following financial statements and financial summaries:

· Quarterly project Interim Financial Reports according to the template in Annex Seven and containing the relevant information specified in subsection 4.2.1 above.

· Monthly World Bank Special Account Reconciliation Statements backed up with bank and

· loan statements and quarterly and six month eligible disbursement analysis with actual

· compared to budget in the required IFR format.

· Annual Financial statements for audit, for all Project Accounts.

The Project will maintain Bank Accounts as follows: (i) A Special Account for loan disbursements, reconciled monthly to bank and IDA credit statements; and (ii) a UNCST Project Account; (iii) UIRI Project account (iv) Grantees accounts which will be maintained in accordance with the terms of their grant agreements. The Project will follow the Interim Financial Reporting system of disbursement procedures as outlined in the World Bank’s Disbursement Handbook.

An external audit firm will be selected and appointed to undertake the Annual Financial and Procurement audit of the Project activities. The Terms of Reference for the auditors and the Method of Selection will be agreed between and approved by the UNCST, IDA and the Auditor General of Uganda. In addition, the World Bank and PPDA may independently carry out routine procurement audits as and when necessary in accordance with their mandated procurement functions.

As part of the FMS assessment, the UNCST Financial Management Manual was reviewed by IDA. The recommendations from the review have been adopted. The UNCST Financial Management Manual governs financial management practices for the project, unless these are found to be in conflict with World Bank requirements. The Financial Management Manual describes all financial management and accounting processes and procedures in detail. Nonetheless, some practices which are of particular relevance to the project are highlighted here:

• All transactions will have appropriate documentation. Documentation relevant to the project will be maintained by UNCST and kept until at least two years after the close of project.

• The project does not pay salaries or salary supplements or sitting allowances to UNCST and UIRI staff. All payments made to UNCST and UIRI staff for operational expenses will be consistent with the guidelines and must have clear justification under the project.

• The UNCST shall maintain the agreed proper limits for eligible expenses that are consistent with Government of Uganda guidelines and acceptable to the World Bank.

• Receipts of authorized operational expenses shall note the specific activity for which the reimbursement was made. Staff will use UNCST vehicles for all official business. However, fuel reimbursements will be made to staff in accordance with agreed par values where it is noted that no official vehicle was available.

Grant recipients and all who receive resources or other benefits from the project have the responsibility to account for the use of resources and the substantial output of the activities in accordance with project rules. Beneficiaries will account to UNCST, and, occasionally, to the World Bank as part of its supervision of the project.

When UNCST has notified the successful proponents that they have been chosen as grantees, it will begin the process of drawing up grant contracts for grant activities. These contracts will make all mutual responsibilities explicit. The UNCST Secretariat will ensure that the project’s financial and administrative activities are fully in compliance with World Bank policies for financial management, disbursement, and/or procurement; appropriate training and technical assistance may be provided by the UNCST Secretariat where required.

4.3.2 WPBFMP for the Subcomponent for Institutional Strengthening at UIRI

The UIRI shall undertake financial management and procurement responsibilities under the MSI in accordance with financial management principles and procurement guidelines and procedures set forth in this manual. Each year the UIRI shall prepare an AWP/B and submit these through the UIRI Executive Director to the UNCST in order for the UNCST to prepare a consolidated AWP/B as described in subsection 4.2.1 above. The AWP/B should be supported by a procurement plan.

If there is need to propose any changes to the UIRI component of the procurement plan or budget based on evolving needs of the project, UIRI may submit these along with the detailed rationale for the proposed changes to the UNCST, which shall in turn propose the changes to the Bank for no objection, along with the consolidated AWP/B for the upcoming year. The UIRI AWP/B shall contain the following sections:

a. Progress and achievements during the last 12 months period

b. Physical Goals for the next 12 month period

c. Projected Expenditures by month over the next 12 months

d. Procurement Plan stating the procurement methods to be used to acquire all works, goods, and services including consulting services over the next 12 months.

The UIRI shall promptly prepare quarterly IFRs following the same format used by the UNCST, and shall submit these to UNCST in a timely manner. The Internal Audit office of the UNCST may carry out from time to time financial and procurement audits of UIRI project activities, in addition to the annual Financial and Procurement Audit to be carried by an independent audit consultant.

4.3.3 WPBFMP for other MSI Grants Administrators

The other Grant Administrators shall undertake financial management and procurement responsibilities under the MSI in accordance with financial management principles and procurement guidelines and procedures set forth in this manual. Responsibilities rest with the combination of the grant recipient (the PI of the Research Team or the Faculty responsible for the new programme) and the financial management and procurement administration of their institution.

All Full Proposals will contain detailed budgets, and these will be reviewed as part of the selection of grant recipients. Once winning grant recipients are selected, the budgets contained in their Full Proposals will form the basis of the grant contract with the grantee (their institution) and of all future grant administration planning.

The budgets from the Full Proposals will be incorporated into the grant contracts as these are drawn up. Once contracts are signed, grant recipients assisted by the financial management and procurement administration of their institutions will begin producing specific Annual Work Plans (AWP) based on the general budget. Annual Work Plans will have four components:

a. Progress and achievements during the last 12 months period

b. Physical Goals for the next 12 month period

c. Projected Expenditures by month over the next 12 months

d. Procurement Plan stating the procurement methods to be used to acquire all works, goods, and services including consulting services over the next 12 months.

The UNCST Secretariat will provide guidance to grantees and grant recipients with respect to these requirements. Annual Work Plans must be approved by the UNCST before grant disbursements can begin.

The Procurement Plan of the AWP will provide details on the major and minor equipment to be acquired, and the operating costs to be incurred. Purchases, payments, financial management and accounting will be done in accordance with the procedures outlined in this manual, plus any additional or updated procedures issued by the UNCST Secretariat.

4.4 Procurement

Overall responsibility for the delivery of Procurement Services under the project will be vested with the UNCST Executive Secretary. The day-to-day responsibilities for procurement will fall on the Head of the Procurement and Disposal Unit (PDU) of the UNCST. The UNCST Executive Secretary will delegate some procurement functions to the UIRI and grantees. These shall be spelt out in the sub project agreements between UNCST as provided for in the MSI Project Agreement. Initially, for a period specified, a Procurement Consultant will assist in building procurement capacity within the UNCST and UIRI.

The scope of responsibilities of the PDU includes first the following coordinating functions:

a. Establishment of an effective procurement service within the project in light of (i) the diversity of assignments; (ii) the need for quality assurance; and (iii) the number of transactions required to coincide with the preparation of annual work plans prior to start of each financial year.

b. Managing the procurement programme of the project for goods, works and services in accordance with Government of Uganda and World Bank regulations.

c. Providing technical support and guidance to beneficiaries in all aspects of procurement of Works, Goods and Services.

d. Monitoring procurement in implementing beneficiaries to ascertain compliance with IDA and GoU procurement regulations.

e. Ensuring that any Procurement Agent that may be contracted and other consultants execute their actions in accordance with the contracts.

f. Updating as appropriate and in consultation with UIRI and the other grant administrators, as well as the World Bank, the Project Procurement Plan.

In addition, PDU is responsible for the following functions when it concerns UNCST’s own or centrally managed procurements. The procurement units at UIRI and the other grant administrators will have similar responsibilities for their own decentralized procurements.

a. Preparation of bidding documents for Works, Goods and related supplies and request for proposals for services including consultant services; and wherever necessary, assisting the relevant user departments with the preparation of the terms of reference and specifications.

b. Implementing the bid evaluation process and thereafter preparation of bid evaluations report for submission to the relevant authorities for approval.

c. Assisting Contract Managers in managing contracts after signature.

d. Wherever necessary, visiting construction sites and participating in site meetings with all parties concerned, and assessing progress by reviewing performance certificates for completed Works tasks so as to recommend appropriateness for settlement of due payments.

e. Attending to all audit queries on procurement.

f. Ensuring proper maintenance of records of each procurement process for the provision of Works, Goods and Services.

g. Implementing the procurement processing, monitoring and reporting system and taking a lead in the preparation of quarterly reports on the status of procurement activities in the project including regular update of the procurement plan.

h. Initiating the settlement of disputes with contractors / suppliers and follow up on shortages and defective supplies/services/works that are in breach of contract provisions.

i. Attending to procurement enquiries and complaints by prospective bidders and/or bidders

j. Liaising with supervising consultants to prepare progress reports on Civil Works.

4.4.1 Procurement Principles and Methods

Procurement administration will be carried out within the general framework of the Public Procurement and Disposal of Public Assets Act (PPDA), 2003 and its attendant Regulations and Guidelines. These recognize and give precedence to international agreements, including the Project and Financing Agreements for the MSI Project. In particular, all procurement of goods and works financed by the World Bank funds, will be carried out in accordance with the Bank’s Guidelines for Procurement under IBRD Loans and IDA Credits dated May 2004 (the Guidelines) and the Bank’s Guidelines for Selection and Employment of Consultants by World Bank Borrowers dated May 2004.

Procurement of Works: Works contracts to be procured under the Project would include: remodeling of existing laboratories and office space; rehabilitation and augmentation of pilot plants and a resource centre for the UIRI; and remodeling of the new UNCST home at Ntinda, Kampala. Procurement will be done using the Bank’s Standard Bidding Documents (SBD) for all International Competitive Bidding (ICB) and National Competitive Bidding (NCB) agreed with or satisfactory to the Bank. Use of the “prequalified list” of civil works contractors from Contracts Committees of Government Ministries, Departments and Agencies will be allowed under the Shopping Procedures provided quotations are solicited to ensure that at least three quotations from qualified contractors are obtained, opened at the same time for analysis, and the contract awarded to the lowest evaluated bidder.

Procurement of Goods: Goods procured under the Project would include: motor vehicles; laboratory, workshop and office equipment; supplies; text books and didactic materials; furniture and IT equipments. The Bank’s Standard Bidding Documents (SBDs) will be used for all procurements done using the ICB, Limited International Bidding (LIB) and NCB and Shopping methods. Framework contracts for common small value supplies e.g. pipette tips, test tubes, gloves, etc, will be procured through annual framework contracts so as to enable implementing agencies to place orders for urgently needed supplies at short notice, at a competitive price. Pooled procurement will be utilized at UNCST under the Grant scheme for common user items or procurements delegated by Grantees.

Procurement of Non-Consultancy Services: Non-consulting services would include provision of services for printing and publishing, “social marketing” of science and workshop facilities; and events management. Procurement of non-consulting services will be done by using the sample SBD for Non-Consultancy Services for all ICB and NCB or other documents agreed with and satisfactory to the Bank, but for Shopping the S PPDA SBD for Non-Consultancy Services will be used. UNCST will conduct pooled procurement of common user services.

ICB contracts estimated to cost above US$250,000 equivalent for Works and US$150,000 equivalent per contract for goods and all direct contracting will be subject to prior review by the Bank.

Selection of Consultants: Consultant firms or Individual Consultants will be selected to provide Technical Assistance to the proponents of research proposals and Managers of research Grants. Consultants will also be used to organize and facilitate workshops and scientific conferences, to set up technology resource and development centres, to set up research and industrial information systems, to provide specialist financial, procurement and project management services, to assist in curriculum development, to perform financial audit of the project accounts, to monitor and evaluate the outputs and impacts, to assess the progress in meeting Project Development Objectives at Mid- Term Review, and to provide engineering consultancy services for remodeling and/or construction of laboratories and for policy studies. When UNCST, UIRI or other grant administrators need to deploy interns, they will be hired as individual consultants using deployment systems satisfactory to the bank.

4.4.2 Project Procurement Planning

The basic planning, i.e. identification of needs / requirements and cost estimation will be the responsibility of the user departments at UNCST, UIRI and the grant recipients. The Heads of the PDUs at UNCST, UIRI and the grant recipients’ institutions will be responsible for preparing their institutional procurement plans which shall clearly distinguish the items to be funded by the MSI project, and submit the MSI specific components to the UNCST. The UNCST PDU shall then review and consolidate the plans into a single MSI project procurement plan, aggregating the needs where possible and feasible, determining the appropriate methods and forms of contract for procurement, developing procurement timelines for each procurement, ensuring its consistency with the basic procurement assumptions for the project and presentation of the consolidated plan to the Bank in the required standard format.

4.4.3 Review and Update of Procurement Plan

A detailed procurement plan has been made to which the Bank has given a no objection (refer to Annex Five).

4.4.4 Procurement Requisitioning and Processing

The User Departments will be responsible for initiating procurements by preparing Terms of Reference / Specifications / Description of Services. This will be followed by them filling or causing the filling of the standard requisitioning forms in compliance with the requirements of the PPDA. The requisition shall be endorsed by the Accounting Officer of the UNCST, UIRI and the other grant administrators to confirm that the procurement has been budgeted for and that the funds are available. The completed form will then be transmitted to the PDU for processing.

The head of the respective PDUs will be responsible for the preparation of the appropriate solicitation documents and presenting them together with the requisitions to the Contracts Committee of the relevant institution for approval. Following the approval of the solicitation documents, the head of the PDU will manage the invitation of bids / proposals, their receipt and opening, evaluation and presentation of evaluation reports to the Contracts Committee. All procurements actions with the exception of micro-procurements (as defined in the PPDA) guidelines will be subject to review by the Contracts Committee.

4.4.5 Review by and Communication with the Bank

When required to as indicated in the approved Procurement Plan, the heads of the PDUs, will be responsible for preparing the necessary documentation for submission to the Bank under the signature of the Accounting Officer of the respective institution. Each such communication will have a unique reference number that associates it with the implementing institution (UNCST, UIRI and the other grant administrators) and the specific procurement being undertaken.

4.4.6 Contract Award

The awarding of contracts is vested in the Contracts Committee. The Contracts Committee will exercise this authority on the recommendation of the ad hoc Evaluation Committees (composed according to relevant PPDA guidelines) subject to it being satisfied that the procurement has been carried out in accordance with the requirements of the PPDA and the World Bank guidelines as applicable.

4.4.7 Contract Management

Contract management will be the responsibility of the User departments. They will manage the contracts to ensure that delivery of the contracted goods / works / services are delivered in accordance with the terms and conditions of the contract. They will be assisted in carrying out their contract management responsibilities by the PDU, which will monitor the performance of the contract.

4.5 General Summary of Financial Management and Accounting Procedures for MSI Grants

Each PI will be responsible to work with the appropriate grant administrator to account fully for the use of all grant funds, including appropriate record-keeping and maintenance of documents. PIs and their associated grant administrators will be required to furnish this information at regular intervals to the UNCST, which in turn will furnish consolidated information to the Government of Uganda and the World Bank.

The AWP’s will contain Projected Expenditures for the year disaggregated by line items. The line items will allow for the recording of specific transactions.

For the management of purchases of minor equipment and the payment of recurrent costs, the grant administrator will open an account in the name of the project (and the host institution, when it is managing the funds). In general, only the PI and the grant administrator will have access to these funds. The account will not be used for any other purposes than to retain and disburse money for grant activities, and no other funds will be deposited therein at any time.

An initial deposit—based on the AWP—will be made into the grant account to cover the expenses for the first six months of the year. The grant administrator will furnish quarterly reports to UNCST, in the format that the UNCST specifies. Upon receipt of satisfactory accounting for the expenditure for the first quarter of the year, the remaining funds will be deposited for the second 6-month period. At the conclusion of the second 6-month period, accounting for the full year will be submitted, along with the proposed budget for the following year, and the process will repeat itself.

All recurrent costs for salaries will be paid monthly by check. Those receiving checks will sign a receipt or voucher, which state not only the name of the individual but the purpose of the payment.

All payments for purchases of minor equipment and supplies will also be made by check, subsequent to the issuance of a purchase order at the conclusion of the procurement process. The required documentation for verification that procurement procedures have been followed will be retained and filed with the check number to verify payment. Project account statements and physical progress reports will be furnished to UNCST quarterly. Satisfactory reports must be received by the UNCST Secretariat before the next tranche of grant funding can be released.

The financial accounts for the grant will contain, inter alia, the following information.

i. A brief (one-page max.) Summary of Physical Progress. This will give broad detail on the physical implementation of the project [e.g., laboratory renovation completed, two mass spectrometers acquired, visiting professor relocated to Uganda and began work, etc.].

ii. A Summarized Statement of Sources and Uses of Funds. This statement will detail resources received during the period, summarize payments made in major categories, and reconcile opening and closing balances for all accounts.

iii. Statements of Use of Funds by Activity. This statement will detail all payments and transactions made during the period.

iv. Procurement Progress Report. This statement will provide detail on the progress of all on-going and planned procurement procedures.

In addition, the annual report shall provide this information in summarized form, plus a Management Assertion that Bank funds have been expended in accordance with the intended purposes as specified in the relevant World Bank legal agreement.

Indicative formats of these statements will be developed in accordance with IDA requirements by Credit Effectiveness.

4.6 Consulting Fees for PI’s and Researchers in Grant Agreements

Stakeholder consultations prior to the design of the MSI highlighted the fact that many qualified individuals at universities and other institutes do not pursue research because they must pursue paid consulting assignments to survive financially. Uganda has an interest in increasing the productivity of its researchers, and in seeing they do not become so distracted with consulting that they are unable to fulfill their core responsibilities as educators and researchers. Therefore, where specific conditions of employment do not prohibit consulting, the grant budgets may include payments to researchers to make it possible for them to concentrate their efforts on the research and teaching. The rationale is to concentrate the time of the researchers in their areas of proven expertise, rather than to have them drawn in various directions by the need to pursue unrelated consulting work.

In general, the project recognizes that it is critical for Principal Investigators to be, in many ways, full-time managers of their research programs. Often this is not possible because these same individuals have to do large amounts of consulting work, to the detriment of the time needed to devote to research.

The MSI will therefore include an option for the PIs of approved grants to receive a payment in exchange for devoting their time fully to the goals of the research. All PI’s will be encouraged to devote themselves “full-time” (not including their teaching responsibilities) to their research programs. Those that agree to forgo other remunerative consulting will receive a payment that will bring their total gross income (normal institutional salary, and existing supplements, plus the MSI payment) into the range of US$ 5,000 equivalent per month. To be eligible for this supplement, PIs must agree to do no other consulting or remunerative work during the project implementation period.

Senior Research Scientists will be offered similar arrangements to bring their total monthly income (normal institutional salary, existing supplements, plus MSI supplement) into the range of US$ 3,000 equivalent, under the same conditions as PI’s. Junior Research Scientists will qualify for supplements bringing their income into the US$ 2,000 per month equivalent. The exact definition of each category of researcher is contained in the Operational Manual.

Senior Research Scientists are defined as Ph.D. holders with full-time institutional appointments and at least seven years of full professional experience in their fields. Junior Research Scientists are defined as Ph.D. holders with full-time institutional appointments in their field of expertise.

Postgraduate students will receive scholarship support at normal institutional rates, plus a roughly 35% premium to recognize the additional expectations for participating in the highly competitive projects of the MSI.

This option is only open to individuals whose terms of employment allow them to carry out remunerative consulting work in addition to their principal responsibilities. The policy applies only to Grant holders under Windows A and B. Civil servants are not eligible to receive remuneration under the MSI.

All consulting fees and other salaries will be determined according to normal World Bank procedures.