Component 1 will be implemented in two phases as follows:

Phase1:  Equal allocations of $800,000 (USD 400,000) to each eligible Town or City Council meeting eligibility criteria

Phase 2: Equal base allocations of $500,000 plus an additional allocation based on the Municipal Resource Allocation Index to each eligible Town or City Council meeting eligibility criteria.
 

Phase 1 Eligibility Criteria:

To access the $800,000 allocation eligible Towns and City Councils must meet the following criteria in order to qualify for subproject preparation.

1. Conduct an open town meeting addressing proposed first investment priorities and prepare minutes;
2. Submit monthly financial reports to the Ministry of Labour, Local Government and Rural Development;
3. Identify all employees and prepare organizational charts and job descriptions;
4. Attend training on increasing revenues (i.e., from property taxes);
5. Collect information for a baseline of maintenance (physical assets to be maintained, actual level of expenditures on maintenance during past year);
6. Collect basic spatial information to be used for future town development strategies.
7. Counterpart Contribution of 3% per subproject

Phase 2 Eligibility criteria for:

Town and City Councils applying for project financing under Phase 2 must meet the following criteria:

1. Formal adoption of a Municipal Growth Plan by the Town or City Council after conducting a series of prior public meetings; 
2. Preparation of a physical asset maintenance plan and corresponding budget and incorporation of maintenance budget in the Annual Town or City Council budget;
3. Conduct monthly Council meetings of which at least one per month should be open to the public as required by law starting from project approval;
4. Submission of monthly financial reports to Ministry of Labour, Local Government and Rural Development as required by law starting from project approval;
5. Reduction in the overdraft facility maintained by the Town or City Council to within 90% of the overdraft limit as approved by the Ministry of Finance by Q3 2011 and for any investment applied for after July 31, 2012 a further reduction to within 75%; and
6. Hiring of a qualified accountant using a transparent selection process based on clearly defined qualifications and experience and using Terms of Reference previously agreed with BSIF and the WB.

Subprojects Schedule:

1. Pilot - Traffic Enhancement Belmopan San Ignacio/Santa Elena -  July 2011– August 2011
2.  Phase I - Dangriga Market/Punta Gorda Town Council- August 2011  -  November 2011
3. Rehabilitation of Streets – Municipalities - November 2011 – January 2012
4. Phase II – to be determine 11/12