ROAD SECTOR DEVELOPMENT PROJECT Implementation Review July 16-26, 2011 AIDE-MEMOIRE
Public Disclosure Authorized I. Introduction and Acknowledgments 1. A World Bank review team (see Annex 1a for a team members‟ list) carried out an implementation review from July 16 to July 26, 2011 of the Road Sector Development Project (RSDP). The objective of the review was two-fold: (i) to review the status of the project and to identify key implementation issues; (ii) to identify and agree with the Government of Nepal (GON) on future course of actions that are necessary for the satisfactory implementation of the project. The team visited a number of RSDP road scheme sites to summarily assess the quality of roadworks and progress status of contracts‟ implementation. 2. The team would like to thank GON for the hospitality extended to it, especially by counterpart agencies and officials. Annex 1b provides the list of people met during the review. This Aide- Memoire summarizes the main review findings, agreements reached, and recommendations made. Discussions held in a wrap up meeting on July 26, 2011 at the Ministry of Physical Planning and
Public Disclosure Authorized Works (MoPPW) and comments received on the draft are also reflected in the final version of the Aide-memoire. This Aide-memoire will be classified as a public document, as per the World Bank‟s Access to Information policy and as per the decision of the wrap up meeting. II. Summary of Key Messages The progress made towards the achievement of the Project Development Objective (PDO) is moderately satisfactory. However, the progress on the physical outputs is on target. The overall physical progress of the Road Development component is satisfactory albeit there are some quality issues in the execution of civil works. The coordination between the Project Coordination Team and the Maintenance Branch needs to be significantly improved as the Maintenance Branch needs to be made accountable for the maintenance of the whole network. The progress on the Institutional Strengthening component has been generally slow. If the
Public Disclosure Authorized component does not make significant progress, the rating of the component is likely to be downgraded and the overall RSDP performance will be at risk. The Overall progress of social safeguard related activities is satisfactory, including the implementation of Resettlement Action plans (RAPs). Nonetheless, some issues require urgent attention including pending payments for project affected families under Phase I. The overall progress of environmental safeguard related activities has been moderately satisfactory. Although there are no major issues, there have been some delays in some actions. The progress of RSDP disbursement is on track. The effort to finalize FMIS and to develop a contract monitoring system needs to continue. The reporting quality needs improvement. The overall progress of procurement related activities is satisfactory. The procurement plan needs a revision. Most GAAP actions are on track. The enhancement of some of the activities is recommended. III. Achievement of Development Objectives Status Public Disclosure Authorized 3. The progress made towards the achievement of the Project Development Objective (PDO) has been revised to moderately satisfactory. While the progress on the physical outputs of the project is on target, there has been an overall increase in the percentage of black top SRN in poor condition from 20% at the beginning of the project to 22% in as of 2010 (the target is to reduce the black-topped roads in poor condition to 15% at the end of the project). If this trend continues, parts of the PDO will not be achieved. A social impact study to assess the impact of the roads developed under the original financing to verify two indicators (percent increase in population in project districts to have all season road access within 20 minutes walking distance and decrease in journey times to key economic and
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social centers in the project area) is currently underway. Annex 2 provides a summary progress on the achievement of results. Implementation Status Road Development Component 4. Upgrading Works Sub-Component. The project aims to upgrade 700 km of earthen tracks to all- season low-cost motorable road standards. These roads will improve connectivity of eight remote district headquarters1 in Mid West and Far West regions of Nepal. Two district headquarters (Baitadi and Dailekh) are now connected by all season roads. As of June 2011, 290 km roads (260 km and 30 km with Otta-seal and gravel surface respectively) are completed. Furthermore, upgrading contracts are awarded for an additional 123 km of roads. Slope instabilities have prevented the upgrading of roughly 30 km length to Otta-seal standard (upgraded to gravel standard only). These sections now need to be upgraded with Otta-sealing. Further 12 contracts (285 km) have been planned to be procured in FY 2011-12. The overall physical progress of this sub-component is 42% against 45% time elapsed. This is considered satisfactory, especially given that a number of contracts under the additional financing (AF) have already been procured and quick progress can be further achieved once the physical implementation starts for all these contracts. Also all 6 emergency contracts are nearing completion. Annex 3 provides details of the sub-component progress. 5. Periodic Maintenance and Roads Safety Works Sub-Components. The target is to undertake periodic maintenance (PM) of 2,550 km of black-topped strategic roads. As of June, 2011, PM works of approximately 483 km (421 km and 62 km under original and AF respectively) of roads have been completed, 30 km road sections (in Ilam and Kathmandu districts), under the original project, are yet to be completed. Actions are needed to complete them. In FY 2010-11 26 PM contracts (718 km) have been awarded. As of June 2011 roughly 62 km roads are completed. The overall physical progress is 19%. If the total length of awarded contracts is considered, 46% of the total target length has so far been procured. The list of FY 2011-12 PM roads is yet to be finalized (the target was end- April, 2011). DOR is requested to finalize the list without a delay. The coordination between Maintenance Branch and Foreign Cooperation Branch (FCB), in the planning and implementation of PM activities, is not adequate and it needs to be improved. The necessary involvement of Maintenance Branch in PM works is stressed in order to achieve the sustainable maintenance of strategic roads. Details of the progress of PM works are provided in Annex 3. 6. Road Safety Roadworks: Four road safety physical works contracts have so far been awarded. Of them only one is completed and the remaining 3 contracts are in different stages of completion (progress ranges from 40 to 50%). These contracts are planned to be complete by end-August 2011. A contract in Kathmandu valley requires re-bidding as the submitted bids were found to be non- responsive. The procurement process of two more road safety contracts has already started. They are scheduled for completion in FY 2011-12. The Road Traffic Unit has been planning further road safety physical works as well as an assessment of black spots on some of the major strategic roads. Institutional Strengthening and Policy Reform Component. 7. The component supports eight activities that span across six units of DOR as well as Roads Board Nepal (RBN). There has been very limited progress on the agreed activities. A number of reasons have been identified for the slow progress including lack of clarity (both on content and processes), insufficient budget allocations, document processing related delays and somewhat ineffective coordination between relevant DOR units and the RSDP Project Coordination Team (PCT). If significant progress is not made on this component, the rating of the component is likely to be downgraded and the overall performance of the project will be at risk. The review team and PCT have agreed a number of critical future steps to significantly improve the performance of this component (steps with the deadlines are available in Annex 6 under institutional strengthening component). Annex 4 summarizes the assessment details. Safeguards Performance
1 Baitadi, Darchula, Bajhang, Dailekh, Kalikot, Jajaorkot, Mushikot and Jumla
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8. Social Safeguards: After a review of safeguard implementation activities the team finds its overall performance satisfactory (see Annex 7 for review finding summary details). Two road sections‟ RAPs under AF are already under implementation. Considerable progress has been achieved since the last review. GESU has taken steps in implementing recommendations of the external monitor following their review of July 2010 to strengthen in-house capacity. RAP implementation of other three roads is being started. The review has followed up on safeguard actions agreed during the last review. Although there has been some progress made, a few actions are still outstanding (e.g. the slow implementation of Vulnerable Community Development Plan (VCDP) and the development of a work plan for implementing the recommendations of the external monitor). The details are described in Annex 7. Urgent actions needed to complete them. DOR has agreed to take immediate actions on them. It is agreed that DOR will inform the Bank on results by end-September 2011. Agreed future actions on social safeguards are presented in Annex 6. 9. Environmental Safeguards: The overall progress of the environmental safeguard related activities has been moderately satisfactory (see Annex 7 for details). Although no major issues have been identified, there have been some delays in some actions. Site-specific Environmental Management Action Plans (SS-EMAPs) of three roads exists in draft forms. They require to be finalized as soon as possible. It is required that bid documents should reflect social and environmental aspects. It has been agreed that GESU will provide input in this regard. GESU and the team have identified a number of actions to be implemented including the preparation of the annual safeguard work-plan (see Annex 5). VI. Procurement, Disbursement and Financial Management 10. Procurement: The overall progress of procurement related activities is satisfactory. All FY 2010- 11 works contracts, as listed in the agreed procurement plan, have been procured. However, there have been delays in the case of some Periodic Maintenance (PM) contracts. These delays were mainly due to certain discrepancies in the evaluation reports that needed clarifications or corrections (see Annex 8 for summary works contracts‟ status). Problems in the application of aggregate qualification criteria for PM contracts have been explained to the team by DOR. This is as the contracts are evaluated by cost-centres (regional offices) and the problems of obtaining up-to-date information from all cost-centres. DOR submitted an improved evaluation modality during the review. It has been agreed that "a central evaluation committee located at RSDP, PCT" will review and finalize the bid evaluation report taking into account the aggregate qualification requirements and will inform the district/region if this leads to a change in the award. DOR has also requested an increase of prior- review threshold of works contracts, given the capacity and expertise built up by them through the implementation of Bank projects over the years. The team agreed to consider this request. However, it is to be noted that such a change will require an amendment to the financing agreement. It has been agreed that the procurement plan needs updating. DOR will submit a formal request to increase the prior-review threshold amount and a revised procurement plan for IDA‟s review. 11. Disbursement and AWPB: The progress of RSDP disbursement is on track and there is no disbursement lag, which is based on projection of the project appraisal document. The actual usage of funds is approximately 25.2%, after netting off the advances. Total disbursement figure of RSDP is $53.32m (roughly 45.3% of the approved amount). The IDA Grant (H339-NP) of the original project has been fully disbursed (the actual usage is 69%). This figure will increase to 73% once the figures (an additional amount of $1.92m) provided in the second trimester Financial Monitoring Report (FMR) is confirmed. A total of $10.53m has so far been disbursed from the IDA Credit (4832-NEP) under AF. No funds have so far been disbursed under the IDA Grant (H629-NEP). GON‟s request to swap RSDP‟s IDA Grant for Poverty Alleviation Fund (PAF) Project Credit has been made effective. This swapping has altered RSDP‟s composition of credit and grant under AF. Revised figures are: Credit $68.47m and Grant $6.53m (original figures were: Credit $41.26m and Grant $33.74m). The Annual Work Program Budget (AWBP) is yet to be submitted for NPC‟s approval. AWPB needs to be finalized before the end of first quarter of FY 2011-12. 12. Financial Management: DOR needs to continue its effort to finalize the FMIS and to develop a contract monitoring system. The team commends efforts made by DOR to develop a Financial Management Information System (FMIS). However, a few observations and suggestions are made by
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the team to DOR. DOR is urged to complete the system as quickly as possible. It is felt that there is a need to develop a contract monitoring system to monitor physical and financial progress. The hiring process of the contract management consultancy needs to be expedited. The reporting quality needs improvement. The last trimester report needs re-submission as a number of discrepancies has been identified by the IDA team. There is a requirement to validate a substantial amount of IDA Grant (H339-NP) with evidence of expenses, although the full amount has already been disbursed. Annex 8 provides details on the review findings on disbursement and financial management. IV. Governance, Accountability and Peace 13. Most Governance and Accountability Plan Action (GAAP) actions are on track. Encouragingly, RSDP has been following up on observations of a majority of technical audits. RSDP also has a functioning grievance handling system including good documentation of complaints and follow up actions. The Project conducts surveys to seek feedback from the general public. This is a good way of both keeping the public informed and seeking opportunities to improve project performance. The transparency and people‟s access to information have improved. However, more needs to be done in terms of increasing the impact of information dissemination. For instance, simplified versions of information materials could be prepared and disseminated. Follow up surveys could be conducted to assess how they were received and used. DOR has requested amendments to some GAAP matrix activities. They include complaint handling, community involvement in project monitoring, financial management, and comparison of estimated costs and market prices (see Annex 9). The GAAP matrix has now been revised (Annex 11 provides the amended version); Annex 10 presents updated GAAP implementation status. RSDP activities appear to be facilitating peace building, although implicitly. This is as RSDP roads are providing physical access to remote districts in Nepal, which is helping in national integration, as well as widening of economic activities. RSDP should continue to respond to community needs and should not engage in activities that may jeopardize ongoing peace building in Nepal. V. Proposed Timing and Focus of Next Implementation Review 14. It has been agreed that the next review will be held in mid-December 2011. The review will focus on: (i) the achievement of results by the project; (ii) the implementation status of the project; and (iii) the status of the implementation of actions agreed during this review. An added focus will be given on the implementation of the institutional strengthening and policy reform component in the next review.
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Annex 1a Implementation Review Team
1. Bandita Sijapati, Social Development Specialist 2. Bigyan Pradhan, Sr. Financial Management Specialist 3. Deepak Man Singh Shrestha, Sr Transport Specialist 4. Drona Raj Ghimire, Environmental Specialist 5. Farhad Ahmed, Sr. Transport Specialist 6. Hiramani Ghimire, Sr. Governance Specialist 7. Kiran Ranjan Baral, Sr. Procurement Specialist 8. Olivier Le Ber: Lead Transport Specialist and Task Team Leader 9. Silva Shrestha, Research Analyst 10. Sunita Gurung, Program Assistant
Annex P-1
Annex 1b
List of Persons Met (in Alphabetical Order)
1. Dr. B. R. Shahi, Chief, Central Road Laboratory, DOR 2. Mr. A. Acharya, Divisional chief, DRO, Dang 3. Mr. A. Mulmi, Engineer, DRO, Damauli 4. Mr. Ajay Kumar Mull, Project Coordinator, RSDP, DOR 5. Mr. Bhesh Raj Bhurtel, Accounts Officer, DOR 6. Mr. Bhuban Karki, Under Secretary, MOF 7. Mr. Bimal Subedi, Project coordinator, RSDP 8. Mr. C. K. Subedi, Unit Chief, Road Traffic Unit, DOR 9. Mr. D. Bhattarai, Divisional chief, DRO Butwal 10. Mr. Dinkar Sharma, Deputy Director General, Maintenance Branch, DOR 11. Mr. Gambhir Shrestha, Senior Divisional Engineer, Maintenance Branch, DOR 12. Mr. H. B. Shrestha, Programme coordinator, RSDP, DOR 13. Mr. Hari Om Shrivastava, Director General, Department of Roads (DOR) 14. Mr. K. N. Thakur, Regional Director, West region, DOR 15. Mr. K. S. Basnet, Sr. Engineer, RBN 16. Mr. Kamal Raj Pande, Joint Secretary, Ministry of Physical Planning and Works 17. Mr. Kedar Prajapati, Sr Divisional Engineer, NVC 18. Mr. L. N. Tripathi, Head, Technical Section, NVC 19. Mr. Lal Shankar Ghimire, Joint Secretary, MOF 20. Mr. M. Acharya, Unit Chief, MIS, DOR 21. Mr. M. L. Shah, Divisional chief, DRO Shivapur 22. Mr. Purna Kadariya, Secretary, Ministry of Physical Planning and Works 23. Mr. R P Pathak, Unit Chief, GESU, DOR 24. Mr. R. N. Bastola, Executive Director, Roads Board Nepal 25. Mr. S. Gyawali, Technical Director, RBN 26. Mr. S. K. Shrestha, Regional director, Mid west Region, DOR 27. Mr. S. N. Shah, Chief, Mechanical Training Centre, DOR 28. Mr. Shivajee Ghimire, Engineer, DRO Bharatpur 29. Mr. Suraj Sigdel, Unit Chief, HMIS, DOR 30. Mr. Y. P. Gautam, Chief Officer, NVC 31. Ms. Meera Joshi, Environmental Safeguard Office, GESU, DOR 32. Ms. Rama Kumari Shrestha, Social Safeguard Officer, GESU, DOR
Annex P-2
Annex 2 Progress on the Achievement of Results
PDO Project Outcome Indicators Progress To Date (June 30, 2011) (i) To provide residents of 6 percent increase in GIS shows 3.15% increase beneficiary districts with all population in project districts season road access thereby to have all season road access Social Impact Study has been reducing travel time and within 20 minutes walking initiated and progress will be improving access to economic distance (in eight project updated accordingly (for roads centers and social services. districts) under original financing). Baseline studies have been completed for road under additional financing. 35 percent decrease in journey Preliminary survey by DOR times to key economic centers project offices resulted in a in the project area 35% reduction in travel time Social Impact Study has been 25 percent decrease in journey initiated and progress will be times to key social services in updated accordingly (for roads the project area under original financing). Baseline studies have been completed for road under additional financing.
Reduce the percentage of 22 % of black top road in poor black top SRN in poor condition condition to 15 percent Intermediate Outcomes Intermediate Outcome Indicators Road Development Component I
(i) Targeted SRN is all 100 percent of 700 km of 290 km road length has been weather sealed gravel road target roads receiving upgraded (out of which 259.5 upgrading works km road length upgraded in Otta Seal Standard) Additional 123 km in two roads under implementation for upgrading works (ii) Sustainable periodic 100 percent of 2550 km of 421 km have been completed. maintenance of targeted highways received periodic Additional 748 km SRN under highways and feeder roads maintenance periodic maintenance executed An assessment shows total No backlog periodic requirement for periodic maintenance within the project maintenance of SRN in year period. 2011-12 SRN is 1,487 km.
(iii) Road Safety Action Plan Publication and Workshop to formulate the
Annex P-0
PDO Project Outcome Indicators Progress To Date (June 30, 2011) & physical works implementation of actions action plan has been planned for Sep. 2011.
Institutional Development Component II
(i) Improved staff capacity HR policy updated and 3 year Trainings being undertaken as within DOR training plan finalized. per the business plan. All Domestic and international trainings programmed for FY training provided for DOR 2010-11 were completed. staff as per policy and plan (ii) Capacity building in Geo- a) Completion of geo- a) Assessments of ongoing technical, Environmental and technical assessments, b) improvement carried out as Social aspects and create EMAP and RAP compliance recommended, b) EMAP and awareness on HIV/ AIDS monitoring and c) RAP monitoring being done performance in creating periodically from GESU and awareness among project MoPPW. Independent external construction workers and road consultant to monitor users on HIV/AIDS environmental and social aspect completed. HIV awareness program has been carried out by NGO. (iii) DOR IT based MIS Completion of pilot WAN installed in 9 offices of operational installation of wide area DOR in Kathmandu Valley. network (WAN) in DOR division offices in Kathmandu and satisfactory operation and maintenance of IT based management system (iv) Road asset management HDM4 used for bi annual road Based on the inputs from the tools used for prioritization of condition assessment and forthcoming consultancy on road maintenance and preparation of annual HMIS the future course of upgrading works maintenance plan actions will be decided.
(v) Improved quality Quality monitoring plan The Central Road Lab has assurance prepared each year and quality carried out internal quality audit carried out by Central audits. Road Lab (vi) Improved effectiveness of RBN Act amended and more RBN act has been tabled in the Roads Board Nepal training and logistics provided Parliament and under Government decision to discussion in the benchmark salaries to market Parliamentary sub-committee rates Human resource development (HRD) plan (vii) Third party technical Third party technical audit Over 20% of the contracts had audit carried out for 20 percent of third party technical audit by the project works each year NVC.
Annex P-1
Annex 3 Summary Progress of Road Development Component
Upgrading Sub-Component
Road Name Contract No. Length Original Contract Physical Financial Comments (km) Estimated Amount Progress Progress Cost (NPR) (NPR) (%) (%) Original RSDP/NCB/STJ/01 11.32 90,341,015 63,950,056 100% 98% Defect Liability Certificate Satbanjh- issued Tripurasundari RSDP/NCB/STJ/02 11.15 92,473,660 76,996,094 100% 98% Defect Liability Certificate Road issued RSDP/NCB/SG/07 19.00 166,184,140 173,312,973 100% 103% Defect Liability Certificate issued. Financial progress over 100% due to Price adjustment payments RSDP/NCB/SG/8A 9.70 86,270,440 93,892,775 100% 101% Defect Liability Certificate issued. Financial progress Satbanjh- over 100% due to Price Gokuleswor Road adjustment payments RSDP/NCB/SG/8B 9.58 81,021,374 70,606,751 100% 102% Defect Liability Certificate issued. Financial progress over 100% due to Price adjustment payments RSDP/NCB/SG/16A 8.72 149,873,405 107,323,879 92% 93% near to completion RSDP/NCB/SG/16B 5.97 61,166,637 45,248,327 92% 92% near to completion RSDP/NCB/KJC/09 19.90 183,861,969 182,719,819 100% 101% Defect Liability Certificate issued. Financial progress Khodpe-Bajhang over 100% due to Price Road adjustment payments RSDP/NCB/KJC/10A 11.10 10,795,083 83,211,467 100% 100%
Annex P-2
Road Name Contract No. Length Original Contract Physical Financial Comments (km) Estimated Amount Progress Progress Cost (NPR) (NPR) (%) (%) RSDP/NCB/KJC/10B 9.80 81,396,150 68,019,339 100% 102% Defect Liability Certificate issued. Financial progress over 100% due to Price adjustment payments RSDP/NCB/KJC/11A(Re) 10.00 108,062,284 89,625,994 100% 99% Under DLP RSDP/NCB/KJC/11B(Re) 10.42 125,004,162 110,566,198 100% 97% Under DLP RSDP/NCB/SKM/3A(Re) 21.70 82,989,690 79,256,357 100% 97% Under DLP RSDP/NCB/SKM/3B(Re) 22.26 114,440,390 106,909,396 100% 98% Under DLP RSDP/NCB/SKM/4 28.84 175,299,702 165,213,597 100% 94% Under DLP RSDP/NCB/SKM/5A(Re) 13.40 83,897,217 90,345,941 100% 99% Under DLP RSDP/NCB/SKM/5B(Re) 13.90 98,056,491 104,495,004 100% 100% Under DLP. Surkhet-Khidkijyula Road RSDP/NCB/SKM/6A(Re) 14.00 102,782,543 92,441,613 100% 101% Under DLP. Financial progress >100% due to Price adjustment payments RSDP/NCB/SKM/6B(Re) 12.34 109,764,476 99,602,606 100% 100% Under DLP. Financial progress >100% due to Price adjustment payments RSDP/NCB/TSD/12 8.22 72,829,511 72,564,694 100% 100% Defect Liability Certificate issued RSDP/NCB/TSD/13 11.86 84,075,182 87,707,608 100% 98% Defect Liability Certificate Tallodhungeswor- issued Dailekh Road RSDP/NCB/TSD/14 11.79 71,936,603 74,408,241 100% 100% Defect Liability Certificate issued RSDP/NCB/TSD/15(Re) 0.87 15,630,080 18,091,498 100% 97% Defect Liability Certificate issued Additional Financing
Annex P-3
Road Name Contract No. Length Original Contract Physical Financial Comments (km) Estimated Amount Progress Progress Cost (NPR) (NPR) (%) (%) RSDPAF-W-UP-ICB-GD- Contractor 18.50 176,216,312 131,188,949 9% 1A mobilized RSDPAF-W-UP-ICB-GD- Contractor 13.50 178,187,823 135,104,789 9% Gokuleshwor- 1B mobilized Darchula Road RSDPAF-W-UP-ICB-GD- Contractor 15.00 174,197,414 148,376,413 9% 2A mobilized Consultant and Contractors have been mobilized at site. RSDPAF-W-UP-ICB-GD- Contractor 25.00 195,010,653 163,249,654 9% Financial progress is 2B mobilized mobilization advance RSDPAF-W-UP-ICB-KC- Contractor 15.60 179,599,471 154,635,808 9% payments 3A mobilized Khodpe- Chainpur RSDPAF-W-UP-ICB-KC- Contractor 15.50 166,344,499 123,638,809 9% Road 3B mobilized RSDPAF-W-UP-ICB-KC- Contractor 15.18 162,962,092 129,394,854 9% 3C mobilized
Periodic Maintenance Sub-Component
Road Name Contract No. Length Estimated Contract Physical Financial Comments (km) cost (NPR) Amount Progress Progress (NPR) (%) (%) Original First Year Nagarjun-Tandi RSDP-FYPM-NT- 9.78 16,850,313 17,575,983 100% 87% Completed NCB-01 Pipalbot-Naubise-Simle RSDP-FYPM-PNS- 21.64 78,629,437 68,380,328 100% 92% Under DLP NCB-02 Mugling Bridge-Anbukhaireni-Gorkha RSDP-FYPM-MAG- 31.91 45,320,309 36,403,630 100% 93% Under DLP NCB-03 Butwal-Kothi RSDP-FYPM-BK- 22.54 31,001,373 23,958,949 100% 90% Completed NCB-04
Annex P-4
Road Name Contract No. Length Estimated Contract Physical Financial Comments (km) cost (NPR) Amount Progress Progress (NPR) (%) (%) Hetauda-Pathlaiya-Birgunj-Kaliya RSDP-FYPM-HPK- 25.51 111,444,228 90,991,011 100% 99% Under DLP NCB-05 Biratnagar-Duhabi-Itahari RSDP-FYPM-BDI- 23.46 48,311,435 41,141,451 100% 94% Under DLP NCB-06 Kakarbhitta-Mawa RSDP-FYPM-KM- 20.98 33,017,036 29,505,493 100% 86% Completed NCB-08 Second and third Year 0% 0% Fikkal-Pashupatinagar, FikKal-Maikhola, RSDP-STYPM-NCB- 36.86 50,888,482 50,389,193 70% 76% 10 km Charali-Jamunabari 01 remaining
Itahari-Dharan, Duhabi-Itahari RSDP-STYPM-NCB- 36.62 59,462,186 50,122,681 100% 86% completed 02 Bhedatar-Mughat-Hile RSDP-STYPM-NCB- 22.38 33,709,362 29,952,755 100% 90% completed 03 Chalnedhunga-Khawa, Hanumante- RSDP-STYPM-NCB- 39.64 50,140,541 44,035,619 85% 67% 85% work Sangha,Chovar-Dashinkali, Mawa-Mugling- 04(Re) completed Mugling Bridge
Tistung District Boarder, Gandak Canal-Junction RSDP-STYPM-NCB- 41.10 52,192,564 44,575,667 100% 95% Under DLP Old Alignment, Dhanushadham-Janakpur 05 Aanbukhaireni-Dumre & Kotre-Pokhara RSDP-STYPM-NCB- 36.58 40,693,019 29,817,620 100% 88% Under DLP 06 Tansen-Kaligandaki & MRM-Sakura, Bhairawa RSDP-STYPM-NCB- 38.06 49,641,193 38,404,030 100% 98% Under DLP Municipality of Siddartha Highway 07 Nepalgunj-Kohalpur & Nuwari Khola-Surkhet RSDP-STYPM-NCB- 21.38 42,584,745 35,420,001 100% 70% completed 08(Re) Budar-Gaira RSDP-STYPM-NCB- 22.08 25,674,247 19,961,480 100% 89% Under DLP 09 Additional Financing
Annex P-5
Road Name Contract No. Length Estimated Contract Physical Financial Comments (km) cost (NPR) Amount Progress Progress (NPR) (%) (%) Mechi Highway (Chihanedanda to Fikkal ) RSDPAF-W-FYPM- 23.56 34,146,861 25,382,209 0% 0% Cont. NCB-ER-Ilam-1A Awarded Mechi Highway (Chureghanti0 to Ranke ) RSDPAF-W-FYPM- 32.14 46,599,131 34,172,940 0% 0% Cont. NCB-ER-Ilam-1B Awarded Birtamod-Chandragadhi road & Mechi RSDPAF-W-FYPM- 26.31 39,464,911 29,741,355 0% 0% Cont. Highway Charali – Buddhabare NCB-ER-Damak-2A Awarded
East West Highway (MRM) RSDPAF-W-FYPM- 21.00 35,699,256 26,039,225 0% 0% Cont. NCB-ER-Damak-2B Awarded Inaruwa Kaptangunk Sahebgunj Road RSDPAF-W-FYPM- 7.00 10,499,402 8,271,906 0% 0% Cont. NCB-ER-Biratnagar- Awarded 2C ARM (Lamidanda-Dolalghat) RSDPAF-W-FYPM- 13.75 32,920,149 21,361,712 0% 0% Cont. NCB-CR-Bhaktapur- Awarded 1A Banepa –Punyamata- Panauti Road, Sallaghari – RSDPAF-W-FYPM- 25.32 39,232,329 22,597,870 0% 0% Cont. Duwakot Road, &Khawa Lamidanda, NCB-CR-Bhaktapur- Awarded 1B
Galtchi Junction- Trishuli Bridge –Mawa Khola, RSDPAF-W-FYPM- 44.55 87,686,296 65,027,387 0% 0% Cont. NCB-CR-Bharatpur- Awarded 2A Mungling- Narayanghat Road, RSDPAF-W-FYPM- 15.10 108,970,825 84,742,663 0% 0% Cont. NCB-CR-Bharatpur- Awarded 2B Lamidanda-Bhainse , Palung-Symbhanjyang , RSDPAF-W-FYPM- 26.22 50,552,339 37,407,202 0% 0% Cont. Tistung ( Kunchal)- Palung NCB-CR-Hetauda-3A Awarded
Bhaise-Bhimphedi and Bhaise-Samari RSDPAF-W-FYPM- 20.00 27,542,885 19,707,512 0% 0% Cont. NCB-CR-Hetauda-3B Awarded
Annex P-6
Road Name Contract No. Length Estimated Contract Physical Financial Comments (km) cost (NPR) Amount Progress Progress (NPR) (%) (%) Bardibas-Jaleshwor Road RSDPAF-W-FYPM- 13.70 35,341,650 17,050,548 0% 0% Cont. NCB-CR-Janakpur-3C Awarded Kakani- Tandi, RSDPAF-W-FYPM- 23.53 36,709,621 29,394,577 0% 0% Cont. NCB-CR-Nuwakot-4A Awarded Banepa Sindhuli Bardibas Road, RSDPAF-W-FYPM- 18.00 31,053,257 23,868,009 0% 0% Cont. NCB-CR-Banepa- Awarded Sindhuli-4B Banepa Sindhuli Bardibas Road, RSDPAF-W-FYPM- 21.60 35,997,626 21,708,945 0% 0% Cont. NCB-CR-Banepa- Awarded Sindhuli-4C Prithvi Highway (Byas Municipality Border- RSDPAF-W-FYPM- 17.83 24,851,240 19,318,413 0% 0% Cont. Kotre) Dumre-Besisahar road (District Boundary NCB-WR-Damauli-1A Awarded -Besisahar) M.R.M Chandrauta-Dhankhola Road & M.R.M RSDPAF-W-FYPM- 30.05 45,132,865 31,129,914 84% 84% 25 km Chandrauta-Bahadurgunj-Krishnanagar Road NCB-WR-Shivapur- completed 1B West Highway (i. Narayeni Bridge-Tiger RSDPAF-W-FYPM- 30.91 39,879,559 27,255,415 0% 0% Cont. mountain junction, ii. Tiger mountain junction- NCB-WR-Butwal-2A Awarded Arunkhola section East-West Highway (ArunKhola-Bardaghat RSDPAF-W-FYPM- 24.93 47,622,063 34,474,680 0% 0% Cont. &Sukaura-Butwal and Siddharth Highway And NCB-WR-Butwal- Awarded Bartung Tansen Ridi Tamghas Road Palpa-2B Pokhara- Baglung Road (Yamdi Bridge -Sandh RSDPAF-W-FYPM- 41.84 67,083,199 47,198,826 0% 0% Cont. Bridge Sector)and Pokhara Sarankot Road NCB-WR-Pokhara-3A Awarded
Pokhara- Baglung Road (Sandh Bridge - RSDPAF-W-FYPM- 24.11 34,932,624 20,910,675 0% 0% Cont. Kaligandaki Bridge Sector) NCB-WR-Pokhara-3B Awarded
Siddhartha Highway ( Walling -Syanja RSDPAF-W-FYPM- 39.71 66,623,745 43,021,229 0% 0% Cont. Sector)and Siddartha Highway ( Kuvinde - NCB-WR-Pokhara-3C Awarded Pokhara mun_bdr Sector)
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Road Name Contract No. Length Estimated Contract Physical Financial Comments (km) cost (NPR) Amount Progress Progress (NPR) (%) (%) East West Highway (Dhan Khola to Lamahi ) RSDPAF-W-FYPM- 38.90 58,103,246 36,509,792 95% 21% 37 km NCB-MWR-Dang-1A completed Nepalgunj – Gulariya Feeder Road RSDPAF-W-FYPM- 35.22 75,855,534 44,665,271 0% 0% Cont. NCB-MWR- Awarded Nepalgunj-1A Mohan to Boradandi & Godawari to Faltude RSDPAF-W-FYPM- 61.10 51,159,692 36,334,579 0% 0% Cont. NCB-FWR- Awarded Mahendranagar-1A Mahakali Highway (Faltude to Budar & Gaira RSDPAF-W-FYPM- 42.20 49,815,624 36,570,913 0% 0% Cont. to Syaule) NCB-FWR-Doti-1B Awarded
Note: A FY 2010-11 listed road for PM (Ghinaghat-Biratchowk Road - 23 km), was dropped as it was found unsuitable for PM (requires rehabilitation).
Road Safety (Physical Works)
Road Name Contract No. Length Estimated cost Contract Physical Financial Comments (km) ( NPR) Amount (NPR) Progress (%) Progress (%) Kath Valley 2/RSDP/RTU/10/11 Needs re- bidding Supply & Installation of Steel 3/RSDP/RTU/10/11 195 5,800,012 4,852,281.92 40% 15% Beam Barrier at PRM/MN/KT Construction of Footpath & 4/RSDP/RTU/10/11 125 12,011,571 9,968,613.21 40% 35% Bus Lay Byes at PRM Construction of Footpath & 5/RSDP/RTU/10/11 3,108,590 1,798.136.57 95% 90% completed Bus Lay Byes at Chabahil Supply & Installation of Traffic 6/RSDP/RTU/10/11 196 1,051,435 739,409.85 50% 30% signs at ARM/KT/MN Traffic safety works at 7/RSDP/RTU/10/11 8,959,220 under Kathmandu Valley procurement
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Traffic safety works at 8/RSDP/RTU/10/11 8,870,552 under Kathmandu Valley procurement
Emergency Maintenance
Road Name Contract No. Length Estimated cost Contract Physical Financial Comments (km) (NPR) Amount ( NPR) Progress (%) Progress (%)
RSDP-NCB- 28.84 50,384,491 33,796,011 80% 80% MD-SKM-01 RSDP-NCB- 27.30 69,925,800 40,883,833 89% 89% Surkhet-Khidkijyula Road MD-SKM-02 RSDP-NCB- 26.34 44,692,326 29,329,997 97% 97% MD-SKM-03 RSDP-NCB- 27.51 67,505,773 49,184,230 83% 83% Tallodhungeswor-Dailekh Road MD-TSD-04 RSDP-NCB- 39.90 43,434,522 29,114,916 95% 75% Khodpe-Jhota-Chainpur Road MD-KJC-05 60.78 31,406,234 21,698,798 99% 78% Satbanjh-Tripurasundari Road and RSDP-NCB- Satbanjh-Gokuleswor Road MD-BD-06
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Annex 4
Summary Status of Institutional Strengthening and Policy Reform Component
Although the institutional strengthening activities have been planned as per the scope of the project supported by the business plans of each of the units/agencies supported under this component, general delay has been observed in the implementation of these activities. The activities under this component are moving at a much slower pace than the physical works component and the progress is behind the target set as per the implementation plan. The key activities and emerging issues for the units supported under the project are as follows: Mechanical Training Center. The proposal to hire a consultant to develop a market based business plan for MTC has been long discussed but the TOR has not yet been processed for finalization. It was also discussed that PCT would explore if there are cost saving within the project that could be used to procure the model excavator. The procurement of the accessories for the hydraulic demo bench and multimeters is also pending mostly because of lack of sufficient budget. It has been agreed that the PCT will provide the proposal to hire the business plan consultant and bid documents for accessories by end-Aug., 2011. The final business plan that defines the role and approach of MTC would be ready by end-Nov., 2011. A decision on whether there is adequate funding available for purchase of the proposed model excavator will be made by DOR by mid-August, 2011. Preparation of Road Safety Action Plan (TESU). The road safety consultant who supports the unit in planning road safety related activities and for implementation of road safety initiatives and pilot programs has been hired. Discussions are ongoing to hold a high level road safety workshop to prepare a road safety action plan for Nepal. It has been agreed that the workshop will be held towards end of Nov., 2011 and will be represented by major stakeholders (both public and private). Based on the outcome of this workshop, further activities will be determined. Central Road Lab (CRL). The CRL is responsible to prepare quality monitoring plan each year and carry out quality audit for upgrading works. For periodic maintenance quality monitoring is done by the divisional offices of DOR. While a list of standard tests, equipment, and specification/manuals for carrying out the tests in Division‟s lab provided to the Divisions, it is not clear if all their labs are functional. A lack of technical manpower for lab operation was observed in many divisional offices to carry out supervision (a number of lab technicians have recently been transferred). In order to assure the quality of works in both upgrading and periodic maintenance, a detailed quality assurance plan that elaborates how the quality will be checked and what are the issues including the mitigation measures may need to be developed. CRL may require additional resources to conduct regular training as well as to hire quality auditors for major works. DOR will hire consultants by mid-September, 2011 to ensure quality of periodic maintenance works. Road Asset Management- Highway Management Information System (HMIS). After many discussions, the EOI for the recruitment of an international consultant to help design the appropriate highway management system is ready to be published. It is expected that the consultant will be in place by early November and the report will be ready by early Jan., 2011. The consultant hired to conduct the pilot on the data collection of road assets had presented his findings (report is still due) and based on this exercise, it has been agreed that DOR will prepare an action plan detailing the timeline and potential sources of funding to collect the road data on the entire SRN. It is expected that the international consultant‟s report will define the future course of actions on HIMS.
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Geo-technical, Environmental and Social Development Unit (GESU). The Environmental Officer and a Social officer (both are Consultants) hired by GESU have been assisting the Unit in monitoring the social and environmental safeguards issues and doing the due diligence works. Although GESU is yet to be restructured as visualized in the ESMF, the fact is that some sort of succession planning has been done with the appointment of a new person to take over from the current Unit chief who is retiring soon. It is expected that the progress in this area will continue. It is recommended that processing for continuation of the current consultant‟s contract renewal or appointment of new consultants be started on time to avoid any delays. Road Sector Skill Development Unit- Human Resource Development (RSSDU). All training activities programmed for FY 2010-11 under this unit have been completed. It has been agreed that while it is not possible to list all trainings for the coming fiscal year, a program for the trainings, both local and international, will be prepared for FY 2011-12 based on the business plan and budget available. DOR will share such a program with the Bank by end-August, 2011. IT and MIS Development (MIS-IT). One IT Manager (Consultant) has been hired to assist the unit. The Information Security Solution for its E-procurement System is in place and the unit is planning to issue authentication key to the bidders soon. The upgraded e-bidding system will also contain facilities to fill the contractor‟s qualification information online to upgrade the existing FMIS and CMS, consultant hiring process is underway. As part of gradual incorporation of the different modules, the unit is also proposing to bring to use the programming and budgeting module of FMIS this fiscal year. Roads Board Nepal (RBN). RBN has completed the preparation of Charts of Accounts (COA) and Monitoring and Evaluation tools and has initiated review of its infrastructure to make the COA operational. The checklists and forms prepared for M&E will be used for monitoring purposes. The savings under the periodic maintenance allocation under RBN was used to finance additional 14-16 km of periodic maintenance as 100% finance from the government. There is a need to prepare a solid business plan taking into account its roles and responsibilities, constraints and vision. This business plan will elaborate the financing needs of RBN to deliver given standards of road maintenance, identify tools and trainings required to strengthen it to be able to fulfill its commitments, etc. It was agreed that a TOR for a national consultant to prepare the business plan would be prepared by RBN and shared with the Bank for comments. The consultant will be hired through RBN‟s own resources. Other studies such as Demand and Supply Study could also be done by RBN to assess the maintenance demand. It was suggested that RBN could ask DOR to substantiate their periodic maintenance list with appropriate planning data as a basis of selection. RBN has received a budget of NPR. 2.75 billion for this FY 2011-12 (Nepalese FY 2068-69). Budget for periodic maintenance is NPR. 1.10 billion which is almost same as was in the previous year (NPR. 1.07 billion). National Vigilance Center (NVC). NVC is carrying out technical audit for Government funded as well as donor funded works in various sector and is also carrying out technical audit of more than 20% of RSDP. There are about 40 active Technical Auditors (TA) and there is need for developing additional auditors through training. At start of the fiscal year a refresher workshop for the active technical auditors would be helpful based on the lessons learned during past years. The Terms of reference for the TAs may need to be reviewed to focus more on the quality of design as well as implementation and an audit of lab facility and resources could be added. NVC has been requested to inform the Bank in cases when there is presentation on the TA reports for and at end of fiscal year, TA report‟s summary highlighting the comments, recommendations, Non Confirmation Reports, and corrective actions taken be provided to the Bank
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Annex 5 Key Status of Actions Agreed During December 2010 Implementation Review
Issues Responsibility Deadline Status
Road Development Component All 4 contracts in Gokuleswor-Darchula Road have been awarded on 18 May Award first lot of contracts in Far 2011. Western region. DOR/IDA June 2011 All 3 Contracts of Khodpe-Bajhang Road have been awarded in Jul. 2011; Second lot bids invited for DOR/IDA Jun. 2011 No objection received in May 2011 for contracts in the Mid Western bid document for Shitalpati-Musikot region Road Bid Documents, designs, and estimates are under review by DOR for Chhinchhu-Jajarkot and Khidkijyula- Jumla Road. Planned to be sent to Bank for NOL at mid-Aug. 2011. Maintenance Component In Hetauda and Ilam, CRL has conducted Monitor quality of periodic quality monitoring of PM works. Similar maintenance works by CRL & DOR/CRL Apr. 2011 monitoring will be continued in other report RSDP contracts as well. Status of maintenance of RMDP DOR/Maintenan Jun. 2011 Status of road condition as per recent Roads ce Branch road condition survey is prepared.
RSDP-AF First Year contracts DOR Road Feb. 2011 All 26 contracts for first year have been awarded Divisions awarded by June 2011. Institutional Component MoPPW/DOR Feb. 2011 VO has been resent to the Cabinet on 26 Apr. 2011 due to change of cabinet; i. Approval of Variation Order for Financial Committee is reviewing and additional services of the awaited for approval supervision Consultants Road Asset Ledger printed and DOR/Road Apr. 2011 Final report from the consultant not road divisions maintain the ledger Divisions available yet. No significant action taken so far. Based on consultant‟s report DOR will submit a comprehensive proposal for asset inventory and management Individual consultants to monitor DOR Apr. 2011 Process for hiring Individual consultant/s periodic maintenance works (AF) will be initiated in Aug. 2011
Financial Management ii. Training of DOR officials DOR/PCT Feb 15, 2011 Rescheduled within Aug., 2011 iii. Training on Contract monitoring DOR/PCT Jul. 15, 2011 Training shall be conducted after the system development of CMS for which RFP has been already issued to the short listed consultants iv. Submit IDA 1st Trimester report DOR/PCT Dec 31, 2010 Submitted on Apr. 13, 2011 of FY 2010-11
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Issues Responsibility Deadline Status
v. Submit Audit report of FY 2009- DOR/PCT Jan 15, 2011 Submitted on Jan. 16, 2011 10 Social and Environmental Safeguard
GESU and Feb 28, 2011 Share findings of the GESU‟s RSDP PCT Informal sharing during the site visit, monitoring of Nov. 2010 and GESU-MoPPW jointly conducted site discuss/agree next step/ mitigations visit for verification with the project Final checks on the environmental GESU Mar. 31, 2011 Field visit completed and technical report status of the completed or is under review process substantially completed construction packages Geo-technical Training and GESU January 2011 Bio Engineering Training Completed in Bioengineering Training and Feb. 2011 May 2011 respectively Geo-Technical engineering completed in Apr. 2011. Plan of action for implementing the GESU in As soon as Recommendation being implemented recommendations of the independent consultation possible such as preparation of hazard map, strip external monitoring with RSDP PCT maps; and DOR Environmental and Social Expert being included in the Supervision Consultant Team for better project implementation.
SS-EMAP prepared. Updated GESU‟s Capacity/ GESU in 31 Mar. 2011 Rescheduled to be complete by Aug. Institutional Strengthening Plan consultation 2011 with RSDP PCT and DOR Environmental screening and/or GESU 28 Feb. 2011 Dhulikhel-Dolalghat road done; report monitoring of road maintenance and awaited road safety works supported by the project. Preparation of SS-EMAPs of the GESU with As soon as Reports prepared; Under review process Khidkijyula-Manma-Jumla Road, support from possible Chinchu-Devisthal-Jajarkot Road, and RSDP PCT and Shitalpati (Salyan)– Musikot (Rukum) supervision Roads. consultant Detailed work-plan for the RSDP GESU 28 Feb. 2011 Being finalized safeguard activities for the remaining period of this fiscal year. Future Projects
i. Preparation of Interim strategy Review team 2012-2013 Done
ii. Result based Bridge support
program
Submit the RFP for IDA
concurrence DOR Technical Evaluation completed, and Feb. 2011 Final Evaluation of proposal is in process iii. Mid Hill Highway
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Issues Responsibility Deadline Status
Submit TOR for Bank Dropped from the list as GON has review DOR allocated budget from its own resources. Mar. 15, 2011 iv. North-East Regional Trade & transportation Facilitation Feasibility study for upgrading / project DOR improvement of Narayanghat- Birgunj Consultants are expected to Consultants End of Feb. 2011 sector has been completed. start the study Detail design for improvement of Mugling – Narayanghat road has been completed.
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Annex 6 Actions Agreed During July 2011 Implementation Review
Issues Responsibility Deadline Comments A. Road Development Component i. Award the remaining contracts DOR/IDA End-Dec., 2011 for upgrading works in three roads SM,CJ, KJ ii. Assessment of the remaining DOR End-Nov., 2011 unsealed length about 30 km iii. Finalize the list of road DOR/IDA Mid-Aug., 2011 sections for periodic
maintenance in FY 2011-12 iv. Award all the periodic DOR/IDA End-Dec., 2011 maintenance contracts for FY
2011-12 v. Status and calibration report by DOR End-Dec., 2011 CRL for all labs linked to upgrading and periodic maintenance works vi. Study of the performance of DOR End-Dec., 2011 past PBMC contracts and recommendation for future PBMC modalities vii. Designation one of the Project DOR Mid-Aug. 2011 Coordinators as Procurement Coordinator/Specialist viii. Reporting by Regional DOR End-Sep., 2011 Directors on the progress and and then every quality assurance aspects of two months PM contracts using a simple agreed format B. Institutional Development and Capacity Building Component i. Approval of Variation Order MoPPW/DOR asap for additional services of the supervision Consultants. ii. Proposal to hire the consultant DOR/MTC End-Aug. 2011 for the MTC business plan and bid documents for purchase of accessories. iii. Workshop on road safety DOR/TESU End-Nov. 2011 action plan and the finalization of the plan iv. Hire consultants to ensure DOR/CRL End-Sep., 2011 quality of periodic maintenance works v. A detailed business plan of RBN/DOR End-Dec., 2011 RBN
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vi. Summary report for Technical NVC/DOR End-Aug., 2011 audits under the project works vii. Proposal for asset inventory DOR End-Sep., 2011 and asset management viii. International consultant hired DOR End-Nov., 2011 for the study and improvement of HMIS, DOR ix. Consulting services procured DOR/IDA End-Oct., 2011 for Web based FMS and CMS x. Inclusion of an additional DOR Mid-Aug., 2011 An extra supervision vehicle in the supervision current contract or proposal for vehicle has procurement of such a vehicle been requested to the Association for PCT. C. Safeguards
a. Social Safeguard i. Develop work plan for GESU/DOR End-Aug. 2011 Agreed upon social/safeguards for FY 2011- in the previous 12 review ii. ESMF brochure printed and GESU End-May 2012 Soft copy is distributed (Nepali version) ready and published on DOR‟s website iii. Develop measures to complete DOR End-Oct. 2011 LA, R&R allowance and assistance to VCs iv. Report on assessment of social GESU End-Aug. 2011 Draft report issues finalized ready v. Revise the current template for GESU End-Aug. 2011 monthly monitoring and reporting by contractors vi. GESU capacity development GESU/DOR End-Dec. 2011 Agreed upon plan in the previous review b. Environmental Safeguard i. Finalize SS-EMAPs of KMJ, Project with support Mid-Aug. 2011 CDJ and SM Roads from GESU ii. Preparedness check GESU End-Sep. 2011 (Kalangagad Bridge-Chainpur Road) iii. GESU‟s feedback/comments GESU End-Sep. 2011 on the draft report Environmental Status of completed RSDP Road Upgrading Works iv. Spoil disposal at school play GESU End-Dec. 2011
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ground (KJC Road), and road drain outfall issue at Ch 4+000 (KJC road) mitigation works v. Geotechnical Assessment and GESU & Project End-Mar. 2012 Mitigation Plan for landslide at Office Bangabgar (SG Road) vi. Increased monitoring of GESU Now onward periodic maintenance and road safety works vii. Regularize ESMF, GESU/RSSDU At least one Resettlement, Geo-technical training in each and Bioengineering training subject once a year viii. Orient labor-gang leaders, Contractor with Each contract machine operators and site support from package, one at supervisors on environmental supervision initial stage of and social practices consultants and construction and GESU (Project to as per need at instruct the later stage contractor) ix. Meeting to discuss findings GESU & PCT Immediately after and recommendations of each each field visit field visit/compliance or preparedness checks x. Annual RSDP Safeguard GESU (PCT/DOR) End-Aug. 2011 Work-Plan for Fiscal Year 2011-2012 xi. Arrangement to avail social GESU & PCT Before current and environmental experts‟ contract expires uninterrupted service at GESU xii. Supervision Consultant‟s PCT and supervision End-Aug. 2011 Environmental and social consultant specialists in-place
D. Procurement i. Update/Revise the DOR/IDA Mid-Aug., 2011 Procurement Plan including forthcoming activities of FY 2011-12 and approval
E. Financial Management i. Third Trimester progress DOR End-Aug., 2011 report of FY 2010-11 ii. Unaudited account for FY DOR Mid-Oct., 2011 2010-11 iii. Audited account for FY 2010- DOR End-Jan., 2012 11 iv. Develop a contract monitoring DOR End-Jul., 2012 system and operational v. Training of DOR officials DOR End-Aug., 2011 vi. Finalization of AWPB DOR End-Sep., 2011
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F. GAAP & Peace Filter i. A separate Action Plan DOR See Annex 10. prepared and attached in Annex 10.
G. Others i. Result based Bridge support program a. Bridge Management DOR/IDA End-Sep., 2011 Consultancy commences b. Consulting services procured DOR/IDA End-Dec., 2011 for feasibility and design of new bridges ii. North-East Regional Trade & transportation Facilitation project: Initiate EOI process for detail design for DOR/IDA Mid-Aug, 2011 improvement of Birgunj- Pathlaiya- Hetauda section iii. Connectivity to district DOR/IDA Mid Sep. , 2011 headquarters: Initiate Feasibility study for Beni- Jomsong (Mustang) and Beshishahar-Chame (Manang) Road
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Annex 7 Summary Findings on Safeguards
1.0 Social Safeguard Implementation of Resettlement Action Plan (RAP): The team observed that the project had continued to make significant progress in terms of implementation of RAP. Two of the five road projects (Gokuleshwor-Thaktholi-Darchula and Kalangagad –Chainpur) under additional financing are currently implementing the RAP. The list of PAFs has been published and bidding documents prepared for the remaining three roads, (See Table below). Implementation Status RAP for Five Ongoing Projects
Loss (as per RAP) Compensation Distribution Relocation and Plots Structures Trees/Crops Rehabilitation Assistance
N NPR. % N NPR. % N NP % Tot Pai % NPR
o. o. o. R. al d Road
Section
Deed TransferredDeed
AffectedHouseholds AffectedPlots Affected Structures Affected Trees/Crops
Gokuleshw 26 542 1 1,27 97 1,48,72,8 17. 12 31,50,3 9 0 0 0 13 12 92 2,20,0 9 or- 0 3 8 78 9 41 2 00 7 Darchula Road Kalangad- 62 1,25 1 499 83 3,85,02,6 66. 0 0 0 0 0 0 NA N N NA Chainpur 4 6 9 9 82 8 A A Road Kidkiyula- List of PAF published on 2068/02/10 B.S. Manma- Jumla Road Chinchu- List of PAF published on 2068/03/18 B.S. Devisthal- Jajarkot Road Shitalpati- List of PAF published on 2068/03/129 B.S. Musikot Road The review team is however concerned about pending payments of 48 households (out of 220) under five road sub-projects (under the original project scope), even though funds have been allocated to provide compensation to these families (see table below). Some of the reasons cited by DOR for the pending payments include disputes over land ownership, concerned plot of land being used as collateral, land deeds not transferred, and absence of titleholders, usually out of the country. Implementation Status of RAP for Phase I (as of April 2011)
Road Section Compensation Payment Status of Compensation Payment Relocation and Additional Support Allowance to Private Land Status of Structures Rehabilitation Vulnerable Groups Assistance Total Paid Absent % Total Paid % Total Paid % Total Paid Absent % Satbanjh- 55 42 2 76 7 7 100 7 7 100 7 4 3 57 Tripurasundari Satbanjh- 140 109 10 78 ------10 1 - 10 Gokuleshwor Khodpe-Kalangagad 3 2 1 67 ------Surkhet-Khidkijyula ------Tallodungeshwor- 22 19 2 86 2 2 100 2 2 100 2 2 0 100 Siyakot-Dailekh Total 220 172 15 78 9 9 100 9 9 100 19 7 3 37
The review team is pleased to note that in cases where land titles can be furnished, DOR has begun to take initiatives such as providing door-to-door notices and handing over the payments
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(e.g., in Darchula). DOR has agreed that such measures will be streamlined and the payment processes be expedited. This is especially important since even for the ongoing projects, the same problems are likely to emerge (e.g., in the Kalangagad-Chainpur Road, 64 plots have been identified as non-registered land, 101 plots under joint ownership, 11 land parcels used as collateral, and 241 land parcels where the land owner cannot be identified). Updating of the ESMF: As recommended during the December 2010 review, GESU has prepared an ESMF brochure in Nepali. The brochure has been uploaded on DOR‟s website. GESU has assured that by May 2012, printing and distribution of the brochure will also be complete. Implementation of VCDP: The review has noted slow implementation of VCDP including for the five road sub-projects under the original scope of the project. Disbursement of assistance has been made to only 37 percent of vulnerable households, primarily Dalits, female-headed households, and IPs identified in the five projects prior to AF, and none in the ongoing ones. DOR has agreed to expedite the process of providing assistance to the vulnerable communities identified in the ESMF and RAP. Monitoring and Reporting: The review is pleased to note DOR‟s interest in enhancing the monitoring and reporting of social/safeguards related activities. One of the activities agreed upon is to require contractors to furnish monthly progress reports for the purposes monitoring compliance. While a template for reporting is already included in instruments like EMAPs, DOR has expressed the need to revisit it to also include social issues, which it has agreed to do in collaboration with GESU by August 2011. The review also commends that preparations are underway to conduct a final status report of Phase I of RSDP. However, as noted by DOR, the final report of the project will take a while. Action plan for social/safeguard activities: As agreed upon in the previous reviews, work plan for the RSDP social/safeguard activities has not been prepared. An action plan that consists of a review of the previous year‟s performance and stock of the following year‟s requirements would enhance more effective planning and implementation of social/safeguards activities including trainings, orientation, disbursement of assistance to vulnerable communities, monitoring and reporting, etc. For the current fiscal year, DOR has agreed to develop a work plan by August 2011. Incorporation of Recommendations from External Review: The review is pleased to note that based on the recommendations of the external social safeguard review carried out in July 2010, the GESU unit has initiated measures to enhance its in-house capacity by hiring consultants especially for periodic monitoring and evaluation of social works. Similarly, templates have also been developed to enhance the monitoring and reporting systems. However, the review noted the need for a GESU capacity development plan and DOR/GESU has agreed to develop it by December 2011. Report on Social Issues: The team was pleased to note that a draft report relating to social impact of the project including, information on employment generation, number of female employed during construction works, number of awareness raising trainings on HIV/AIDS, performance of the NGOs, etc., has been prepared. GESU has indicated that a final draft of the report will be ready for circulation by August 2011. Social Issues during Periodic Maintenance: In the PAD for RSDP, no social issues had been envisaged under periodic maintenance. However, during the course of the fieldwork, staff members from the divisional offices of DOR revealed that issues such as the unwillingness of communities to allow contractors to work on the drainage during maintenance work, encroachment in the right of way, have delayed or negatively affected project works. The review
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commends the efforts of DOR officials to resolve these issues such as by holding stakeholder meetings to raise awareness, or negotiating a compromise with community members (e.g., widening of the roads in return for consent to work on the drainage). The review has recommended that such initiatives be enhanced and further strengthened. 2.0 Environmental Safeguard Site Specific EMAP and Bid Documents. Project‟s consultant has prepared draft SS-EMAPs of the following roads under additional financing: Khidkijyula-Manma-Jumla (KMJ) Road (KM Section, and MJ Section), Chinchu-Devisthal-Jajarkot (CDJ) Road, and Shitalpati (Salyan)- Musikot (Rukum) Road. These have been reviewed and commented by GESU. The final SS- EMAP incorporating the GESU‟s comments, however, have not yet been submitted. It was agreed that the mentioned SS-EMAPs would be finalized by mid-August 2011. The SS-EMAPs of the two roads (Gokuleshwor-Thakthali-Darchula and Kalangagad Bridge-Chainpur) had been prepared earlier. The Review Team also agreed that project would obtain GESU‟s feedback on the bid documents of the KMJ, CDJ and SM Roads for internalization of environmental and social safeguard related items where relevant. Preparedness check. The Gokuleshwor-Thaktholi-Darchula Road is at the initial stage of construction, contractors have been mobilized. GESU has visited the road in July 2011 for preparedness check during which time an orientation on environmental and social safeguard in RSDP was organized for the contractor, consultant and DOR field staff. In the opinion of GESU, GTD road‟s filed implementers preparedness and awareness is generally satisfactory. The report of this preparedness check will be ready by August 2011. Construction of the Kalangagad Bridge- Chainpur Road has not begun yet, though contracts have been recently awarded. Preparedness check of this road will be carried out in September 2011, provided contractors are mobilized in the field by then. Environmental Status of completed upgrading works. GESU, in November 2010, had carried out final compliance check for the following roads (original project): Satbanjh-Tripurasundari- Jhulaghat (STJ) Road, Satbanjh-Gokuleshwor (SG) Road, Khodpe-Jotha-Chainpur (KJC) Road . A report on those checks have been prepared and shared with the Review Team and project. Project informed that draft Report on the Final Status of Environmental Mitigations Works in all the roads under original project has been prepared by the supervision consultant. It was agreed that the project will obtain GESU‟s comments on the draft reports by September 2011. The Final Status Report will, among other thing, provide information on the implemented mitigation works, the risks/ issues identified by IEE/ SS-EMAP or during construction and recommended measures, as well as any outstanding works. The report will also show as built sketches, if/where possible. Road specific issues noted in December 2010 review were: landslides at Bangabagar (SG Road), spoil disposal at school play ground (KJC Road), and road drain outfall issue at Ch 4+000 (KJC road). According to the project, temporary measures were employed at the school play ground and drain-outfall, and project plans to resolve these issues by December 2011. The landslide at Bangabgar (SG Road) is a significant one requiring a more detailed geotechnical investigation: it was therefore agreed that GESU will commission, with funding support from the project, an assessment of the problem and prepare a mitigation plan by March 2012. Periodic Maintenance and Safety Works. GESU visited Dhulikhel -Dolalghat Road for monitoring periodic maintenance works. Members of the review team also visited few roads under maintenance. Based on this, the review team advised the project for issuing instruction to the maintenance contractor on improving health & safety practice, managing scraps and bituminous wastes, and camp facility. GESU‟s monitoring reported that kerosene based boilers were used for heating bitumen (no fire-wood was used). It was also agreed that monitored of maintenance works will be increased in future. Some of small scale road safety works, such as
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bus stop or overtaking zones at Damauli and at Chabahill , and steel barriers at three places in Narayanghat-Mugling Road and signposts in Narayanghat-Mugling, Nuwakot and Dhulikhel- Dolalghat Road, are being carried out now. However, safety works has not been screened yet. GESU will screen the safety work proposals, and visit the road safety works for monitoring. Training and orientations. GESU has carried out Geotechnical training (from 19-29 April 2011) and Bio-engineering Training (20 -26 May 2011) for 20 and 21 trainee respectively. The training were participated by stakeholders involved in road sectors such as from Department of Roads, DoLIDAR, National Road Board. RSDP as well as DOR‟s internal fund were utilized in organizing these trainings: Geotechnical using RSDP fund and Bioengineering using GON fund. GESU organize these trainings after a few years gap. Now, GESU/DOR plan to organize such trainings more regularly, at least once a year, particularly in subjects such as ESMF, Resettlement, Geo-technical and Bioengineering (for about 20 trainees in each subject). Orientation of RSDP ESMF and other requirements has been organized in GTD Road in July 2011 (for contractor, consultant and project site office). Similar orientations will be organized for Kalagagad Bridge-Chainpur Road in September 2011. The review team agreed that contractor will be asked to organize orientation on environmental and social practices to labour-gang leaders, machine operators and site supervisors with support from supervision team‟s social and environmental specialists (initially GESU will also support in doing this). Sharing Findings of GESU’s Monitoring. The review noted that compliance checks and other monitoring report submission takes time and communication of the filed visit findings is delayed. There was no formal meeting held after the monitoring for sharing and discussing the findings and mitigations that were needed; through informally the findings have been conveyed to the site staff. It was agreed that, now onward, a meeting will be compulsorily organized with project for sharing the findings and recommendation of each field visit/compliance or preparedness checks by GESU and/or MoPPW and external monitoring as soon as completion of the field visit. Implementation of External Monitoring Recommendations. No formal plan of action has been prepared, though some of the recommendations are being implemented such as new SS-EMAP requires strip maps, each project manager and supervision consultant are now more aware of hazards, provision of full-time social and environmental specialists in supervision consultant team, and some others may be accommodated in the updated GESU Capacity Strengthening Plan. Updated GESU’s Capacity/ Institutional Strengthening Plan. This action has been delayed. GESU plans to prepare this plan by Decemeber2011. Noting the shortage of human resources and existing work-load, the review team advised GESU to engaged short-term consultant for preparing the plan. RSDP safeguard Activity Plan for FY 2011-12. GESU and RSDP agreed that, by August 2011, RSDP Safeguard Annual Work-Plan for Fiscal Year 2011-2012 will be prepared and approved from DOR. Environmental Specialist. Review noted that contract of the current environmental and social specialists hired by GESU expire in January 2012 and in November 2011 respectively. DOR /Project will take proactive actions to ensure availability of the experts‟ service continuously without interruption. Project will also ensure that full-time environmental and social specialists, as provisioned in the supervision consultant team, will be in-place by August 2011.
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Annex 8 Status of Procurement and Financial Management
Procurement The following tables summrises the contracts already been procured with the planned and actual “no-objection” dates:
Upgrading works contracts awarded under RSDP-AF
Planned Actual Contract Identification NOL date NOL date 1 RSDPAF-W-UP-ICB-GD-1A, Upgrading works of Gokuleswor- Darchula Road (Chainage: 54+000 km to km 72+500) 22 Feb. „11 4-Mar. „11 2 RSDPAF-W-UP-ICB-GD-1B,Upgrading works of Gokuleswor- Darchula Road (Chainage: 54+000 km to km 72+500) 22-Feb. „11 4-Mar. „11 3 RSDPAF- W-UP-ICB- GD-2A , upgrading works of Gokuleswor- Darchula road (km 86+000 to km 101+000) 26-Feb. 30-Mar. 4 RSDPAF- W-UP-ICB- GD-2B , upgrading works of Gokuleswor- Darchula road (km 101+000 to 126+000) 26-Feb. 30-Mar. 5 Upgrading of Khodpe-Chainpur road Contract Identification No.: RSDP-W-UP-ICB-KC-3A [ km 60+400 to km 76+000], 1-Mar. 1-Jun. „11 6 Upgrading of Khodpe-Chainpur road Contract Identification No.: RSDPAF-W-UP-ICB-KC-3B[ km 76+000 to km 91+500] 1-Mar. 1-Jun. „11 7 Upgrading of Khodpe-Chainpur road Contract Identification No.: RSDPAF-W-UP-ICB-KC-3C [ km 91+500 to km 106+680] 1-Mar. 1-Jun. „11 Periodic maintenance contracts awarded under RSDP-AF
Planned Actual NOL Contract Identification NOL date date
RSDPAF- W-FYPM-NCB- FWR - Mahendranagar - 1A,; Periodic Maintenance of Mahakali highway (Mohana 0+000 to Boradandi 1 6+600 and Godawari 29+000 to Faltude 67+700 8-Jan. „11 16-Mar. „11 RSDPAF- W-FYPM-NCB- FWR - Doti-1B: Periodic Maintenance of Mahakali highway (Faltude 0+000 to Budar 11+390 and Gaira 2 33+460 to Syaule 64+268 8-Jan. „11 16-Mar. „11
RSDPAF- W-FYPM-NCB- WR-Pokhara-3A ; Pokhara Baglung road (Sandh bridge to Kali gandaki bridge sector) km 6+720 to km 3 43+760 and Pokhara Sarankot road (km 0+000 to km 4+800) 10-Jan. „11 17-Apr. „11 RSDPAF- W-FYPM-NCB- WR-Pokhara-3B ; Pokhara Baglung road (Yamdi bridge to Sandh bridge sector) km 43+760 to km 4 67+870) 10-Jan. „11 17-Apr. „11 RSDPAF- W-FYPM-NCB- WR-Pokhara-3C ; Siddhartha Highway (Waling- Syanja Sector) km 118+445 to km 146+065 and Siddhartha Highway (Kuvinde- Pokhara Mun Brd sector Sector) km 166+675- 5 km 178+765 10-Jan. „11 17-Apr. „11
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RSDPAF- W-FYPM-NCB- MWR-Dang-1A East West highway 6 (Dhan Khola 676+100 to Lamahi 715+000) 7-Jan. „11 24-Mar. „11 RSDPAF- W-FYPM-NCB- MWR-Nepalgunj-1B, Nepalgunj- 7 guleriya road from Ch 0+000 to 35+220 km 7-Jan. „11 24-Mar. „11 RSDPAF- W-FYPM-NCB- ER-Damak-2A Birtamod-Chandragadhi road (0+000 to 12+530 & Mechi Highway (Charali 39+220 to Buddhabare 49+000, 52+000 to Chihandanda 56+000) 8 8-Jan. „11 17-Mar. „11 RSDPAF- W-FYPM-NCB- ER-Damak-2B East West Highway 9 (MRM 24+000 to 45+000) 8-Jan. „11 17-Mar. „11
RSDPAF- W-FYPM-NCB- ER- Biratnagar-2C Inaruwa Kaptanginj 10 Sahebgunj Road ( chainage 0+000 to 7+000) 8-Jan. „11 17-Mar. „11 RSDPAF-W-FYPM-NCB-CR - Bhaktapur1A: Lami danda- Dolalghat (45+850 to 59+600) and Suryavinayak- Chameli danda 11 (0+000 to 4+500) 7-Jan. „11 21-Apr. „11 RSDPAF-W-FYPM-NCB-CR - Bhaktapur1 B: Banepa- Punyamata- Panauti road (0+000 to 6+000) & Khawa- Lamidanda (32+530 to 12 45+850) 7-Jan. „11 21-Apr. „11 RSDPAF-W-FYPM-NCB-CR - Nuwakot-4A ;Pasang Lhamu Marga 13 Kakani- Tadi section (36+000 to 59+530) 10-Jan. „11 21-Apr. „11 RSDPAF-W-FYPM-NCB-CR - Banepa 4C; No 2 Dapcha bridge 14 (28+500) to Dhulikhel (50+100) 21.6 km 10-Jan. „11 21-Apr. „11 RSDPAF-W-FYPM-NCB-WR-Damauli - 1A , Prithwi highway: Byas municipality border to Kotre (km 144+540 to 154+540) ; Dumre- Besi shahar road from district boundary to Beshisahar (km 15 35+600 to 43+430) 7-Jan. „11 20-Apr. „11 16 RSDPAF- W-FYPM-NCB- WR-Shivapur-1B , MRM Chadrauta- 7-Jan. „11 20-Apr. „11 Dhankhola road (km 653+650 to km 675+700)
RSDPAF-W-FYPM-NCB-Hetauda-3A.: Lamidanda- Bhainse (102+000 to 121+000); Palung- Symbhanjhyang (65+000 to 19 68+000); Tistung- Palung (60+780 to 65+000) 9-Jan. „11 6-May „11 20 RSDPAF-W-FYPM-NCB-CR-Hetauda-3B : Bhainse-Bhimphedi 9-Jan. „11 6-May „11 (0+000-12+000) and Bhaise- Samari (121+000 to 129+000), Jn. old alignment to - Gandak Nahar canal (bypass road) (181+490 to 188+790) 21 RSDPAF-W-FYPM-NCB-Janakpur-3C.: Bardibas - Jaleswor 9-Jan. „11 6-May „11 (11+300 to 25+000) 22 RSDPAF-W-FYPM-NCB-CR-Banepa- Sindhuli-4B: Banepa- 10-Jan. „11 6-May „11 Sindhuli- Bardibas Road (Chainage 10+000 to 28+500) RSDPAF-W-FYPM-NCB-WR- Butwal - 2A : East-West highway (i. Narayani bridge to Tiger mountain junction, ii. Tiger mountain 23 junction to Arun khola section) 8-Jan. „11 6-May „11
RSDPAF-W-FYPM-NCB-WR- Butwal -Palpa- 2B : East-West highway (Arun khola -Bardghat section & Sukaura- Butwal and 24 Siddharth Highway and Bartung Tansen Ridi Tamghas Road) 8-Jan. „11 6-May „11
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25 Periodic Maintenance: RSDPAF-W-FYPM-NCB-CR-Bharatpur-2A: 8-Jan. „11 9-Jun. „11 Galchi Junction- Trishuli Bridge-Mawa Khola, (21+000-42+500- 66+100) 26 periodic Maintenance: RSDPAF-W-FYPM-NCB-CR-Bharatpur-2B: 8-Jan. „11 9-Jun. „11 Narayanghat- Mugling road (16+000 to 36+000)
Services contracts awarded
S.No Assignment name Stage Plan date NOL date Conversion of FMS and PMs into 06/22/11 and 1 web based system EOI/RFP 31-Mar. „11 06/27/11 2 Bridge Management System Tech. eval report 07/03/11 3 Feasibility and design of bridges EOI 06/27/11 4 HMIS system EOI 07/06/11 5 Redundant power system RFP 31-Mar . „11 Not initiated yet
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Financial Management and Disbursement
Budget for FY2010-11 and Estimated Expenditures. The following table provides the approved budgets for FY2010-11: Particulars Budget in NPR m % Change over GON RBN IDA Total FY2009/10
Recurrent Budget 0 14.7 15.98 0 15.98 (48-3-407) Capital Budget 0 50.0 598.86 1,647.88 2,246.74 (48-4-407) Capital Budget 1,070.00 229.8 0 0 1,070.00 (48-4-695) Total 614.84 1,070.00 1,647.88 3,332.72 73.0 Total approved budget allocation for FY2010-11 is NPR.3,332.72m. Of the amount NPR 1,647.88m is allocated under IDA financing, NPR 1,070.00m under Roads Board Nepal and NPR 614.84m under counterpart financing. Budget for maintenance through Roads Board Nepal has been significantly increased (by approximately 230% as compared with FY2009/10 figure). The overall increase of budget in FY 2010-11 was roughly 73% higher than the budget of FY 2009/10. Total estimated expenditures (as of June 15, 2011) were NPR380.51m. This figure is only 11.4% of the approved budget. This is extremely low level of expenditures. This is due to the following reasons: (i) late announcement of the budget affecting in late authorization release for expenditures, (ii) delay in effectiveness of the additional financing from the original plan which affected the procurement cycle, (iii) slow implementation, and (iv) delay in consolidation of expenses from cost centers. Based on current assessment, the total utilization of funds in FY2010-11 is expected to be around 30 to 35%. Proposed Budget for FY2011-12: The Project has proposed the budget as indicated below for FY2011-12: Particulars Budget in NPRm % Change over GON RBN IDA Total FY2010-11
Recurrent Budget 0 81.4 28.98 0 28.98 (48-3-407) Capital Budget (48- 0 52.2 355.54 3,064.78 3,420.32 4-407) Capital Budget (48- 1,227.87 14.8 0 0 1,227.87 4-695) Total 384.52 1,227.87 3,064.78 4,677.17 40.3 Disbursements. As of June 30, 2011, available funding from IDA Grant H339-NP (original Road Sector Development Project) has been fully disbursed. Netting off the available balance in the Designated Accounts, the actual usage of funds under this Grant is only about 69%. The second trimester Financial Monitoring Report (FMR) which is currently under review will document US$1.92m, once the report is approved. This will reflect the actual usage of funds to about 73%. From the additional financing for the Road Sector Development Project, about $10.53m has been disbursed from IDA Credit 4832-NEP in the form of advance to the Designated Accounts. Funds have not been disbursed from the additional financing under IDA Grant H629-NEP. Following table provides the status of disbursements of RSDP from various sources of funding:
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Source Project Approved Disbursed Amount (m$) Amount (m$) IDA Grant H339 RSDP 42.60 m 42.79 IDA Grant H629 Additional Financing RSDP 33.74 m 0 IDA Credit 4832 Additional Financing RSDP 41.26 m 10.53 TOTAL RSDP+Additional Financing 117.60 53.32
The total disbursement from RSDP is $53.32m, which is about 45.3% of the approved amount. Netting off the advances in the Designated Accounts, the actual usage of funds is about 25.2%. Disbursement progress is on track as currently there is no disbursement lag based on projection in the project appraisal document. Additional Financing. An additional Financing for the Project amounting to US$75.0m (Credit – US$41.26m and Grant – US$33.74m) was approved by the Board on November 23, 2010. The additional Financing was declared effective on April 11, 2011. GON requested the Bank to swap the IDA Grant from Additional Financing for RSDP to the Additional Financing for Poverty Alleviation Fund Project. The amendment to the Financing Agreement was signed by the Government of Nepal on July 8, 2011, which now changes the allocation of funds of the Additional Financing as follows: Credit – US$68.47m and Grant – US$6.53m). Financial Management. The team reviewed the financial management system in the Project. The team also reviewed the Financial Management Information System (FMIS). The review team commends the efforts of the Department of Roads (DOR) to continue to improve the FMIS. The FMIS is not yet fully operational to rely upon the information generated through it. The review suggested areas for further improvements. PCT confirmed that suggestions made will be incorporated and the trimester reports will be submitted through the system. The review also emphasized the need to make an arrangement for developing a good back-up system, ensure that the consultant also provides back-up staff for ongoing support, and arrange after sales support service to ensure sustainability of the system. The team also stressed the need for DOR to give a high priority to monitor both the project outputs and expenditures to ensure physical and financial progress reconcile. PCT agreed that the training to all Project Managers and Accounts Officers will be organized once a year and DOR will mobilize a field visit on a periodic basis to provide guidance on the accounts and also to follow-up on the expenditure statements (this has already been initiated and will be expanded). The review team was informed that such a training is planned to be conducted in July. In addition to these, the review reminded the following recommendations made in the earlier reviews: (1) All ledgers and books of accounts to be updated in the FMIS system, (2) Advances (except for mobilization advances) should not be treated as expenditures and claimed to IDA until such advances are actually realized as the reported expenditures (the review team suggested to maintain a separate record of such Advances), (3) All contract details by cost centers, components, budget heads etc. should be recorded in vouchers prior to approval of payments, and (4) Develop a contract monitoring system to be able to monitor the implementation status of each contract to be operational by July, 2012. The review noted that all ledgers are now generated through FMIS. The review team also observed that the invoices/bills are now defaced with the PAID stamp after payments are made. The team interacted with the programmer and suggested to built extra features, as suggested above. The contract monitoring system is not yet in place. The review team was informed that the RFP for developing the system has already been issued. DOR estimates that the contract will be awarded by September 2011. The review team reminded the urgency of having this system as the contract payment systems need to be linked with the work progress. The system is expected to be operational by July 2012.
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Client Connection. The Project is up-to-date with regard to the registration in Client Connection. Implementation Progress Report. There are no pending Implementation Progress Reports. The second trimester Implementation Progress Report of FY 2010-11 was submitted on June 28, 2011. IDA team reviewed the report and provided its comments on July 8, 2011. The FMR of the report needs to be resubmitted. The review team also reminded that the next progress report due is for the third trimester of FY 2010-11 which is due on August 31, 2011. Audit Report. There are no pending audit reports or issues. The review team reminded that the unaudited account for FY 2010-11 is due on Oct. 15, 2011 and the audited account on January 15, 2012.
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Annex 9 Governance, Accountability and Peace
Governance and Accountability Plan Action (GAAP) An updated status GAAP matrix is presented in Annex 10. DOR and the team have discussed some changes in GAAP matrix. During the review of the GAAP matrix, the following suggestions have been made. The team has agreed to review them and advise accordingly: Complaints handling: The matrix includes several references to grievance handling mechanism. They are theme-based (eg, organizational arrangements, safeguards). In practice, RSDP would have one unit to handle all kinds of complaints. The matrix should therefore have only one statement on grievance handling. Involvement of communities in project monitoring: The GAAP statement "Approve and/or agree on communities‟ roles in monitoring of project implementation and procedures of grievance redressal mechanism" is not very practical in RSDP. It could be dropped. Financial management: Organizing training programs on FM for all cost centers should be an annual (and not semi-annual) event for practical reasons. Comparison of estimated costs with market price: The matrix says that maintaining database of unit rates and comparing these with market prices would be done "periodically". This doesn't give a clear sense of when exactly they would happen. DOR colleagues are of the view that they should do it for each contract to be awarded. This should be reflected in the text (eg, "contract- based" or "scheme-based"). Peace Filter Policy dialogue: RSDP has opened up opportunities for policy dialogue on public investments in remote regions, which can be expected to contribute to inclusion and employment creation. Given that exclusion and poverty have been the major drivers of conflict in Nepal, RSDP interventions can be considered to be associated with peace. Implementation: RSDP undertakes pro-active communication through web-based, electronic, and print media. It has also carried out 'opinion surveys' which can be used as people's feedback on Project performance. The Project's social safeguard and grievance handling measures are other examples to promote peace and avoid conflict. E-bidding is another innovation, which has helped in preventing security threats during the award of contracts. Suggestions: RSDP should continue to respond to the needs of rural communities. Maintaining impartiality in the selection of projects is another important factor. Enhanced access to information based on information, education and communication (IEC) materials customized to community needs would also be of help.
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Annex 10 Status of Governance and Accountability Action Plan (GAAP)
Agency Issues Actions responsible Timeline Status Organizational Arrangements and Procedures strengthening - Designate staff within PCT and PMUs to be DOR, PCT, By PCT: A K Mull accountability within responsible for implementation of GAAP at the Project‟s field effectiveness PMU (SKM Road): PM S B DOR and its field respective central and field levels offices additional Ghimire offices financing PMU (KC Road): PM A Aryal PMU (BD Road): AO M B Bhandhari PMU (SM Road): PM S Nepal PMU (CJ Road): Assistant First, H B Basnet CRRD: Er. S R Shrestha ERRD: Ass First: K Adhikari WRRD: Ass First: L M Sigdel - Designate staff with PCT and PMUs to be DOR, PCT, By PCT: A K Mull responsible for handling complaints received from Project‟s field effectiveness PMU (SKM Road): PM S B beneficiaries/road users and contractors and offices additional Ghimire reporting on the progress of handling complaints financing PMU (KC Road): PM A Aryal PMU (BD Road): AO M B Bhandhari PMU (SM Road): PM S Nepal PMU (CJ Road): Assistant First, H B Basnet CRRD: Er. S R Shrestha ERRD: Ass First: K Adhikari WRRD: Ass First: L M Sigdel
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- Submit trimester reports by PMUs to PCT and DOR, PCT, Trimester Will be included in PMR ( Third trimester reports by PCT to DG of DOR and WB Project‟s field Trimester FY 2067-68) project team on implementation of GAAP offices - Update and disseminate information disclosure DOR, PCT By appraisal under preparation policy for DOR-Bank projects in accordance with RTI 2007 (see Appendix 1) - Disclose annual progress report on GAAP DOR, PCT, Annually will be done implementation DOR website and at its Project site Project‟s field offices offices done - Publicize the existence of the functioning DOR, PCT, By complaint handling mechanism and venues of its Project‟s field effectiveness access for general public and bidders/contractors offices (with a description of the process of handling complaints) on DOR website and concerned project site offices Technical improvement in design - Regularly update material prices and use the PCT/PMU Annually Estimation is done accordingly and cost estimates updated prices in cost estimates
- Update GON old works norms and develop DOR Periodically GON old norms has been updated another set for equipment based method of with equipment based method construction
- Design reviews by Independent Technical will be carried out in FY 2068-69 Auditors (ITA) for conducting reviews of on a sample basis designs and cost estimates as required - Maintain database of unit rates for civil works PCT/PMU Periodically done major items - Compare estimated cost with market price PCT/PMU Periodically done established through competitive bidding
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Need for improvement - Establish several channels (text messages, hot line, done in quality of on-line complaint box, in addition to written construction works complaints) for beneficiaries/road users to communicate problems related to quality of contract works and condition of roads; advertise those channels on the information boards at the project sites, concerned project site offices and DOR website QAP in the finalization stage - Strengthen internal quality controls: format of QA plan to be cleared by WB, and quality reports to be made available to Independent Technical Auditors By DOR/PCT for review effectiveness - Enhance capacity building in QA for DOR and Training to DOR personnel has field offices been conducted and planned in future also - Engage ITAs to check for 20% of contracts in will be done compliance with QA Plan - Engage Ex-post ITAs for conducting audits on will be done 20% sample of works including the environmental and social safeguard aspects - Use ITAs to review sample work done by will be done supervising consultants (e.g., variation orders) during implementation Safeguards Possible adverse - Apply the Environmental and Social Management done impacts on the Framework (ESMF) in project documents to communities and determine and mitigate possible adverse impacts of environment the project on the social and environmental aspects DOR/PCT/PMU By Appraisal - Conduct consultations with communities on in the process possible adverse impacts and proposed mitigation measures
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- Define and agree on communities‟ roles in in the process monitoring of project safeguard implementation and procedures of grievance redress mechanism Weak grievance redress - Set up (or improve where exist) a functional Needs information from DOR mechanism/complaint complaint handling mechanism as per ESMF By handling mechanism DOR/PMU effectiveness - Inform communities of the functional role of this mechanism and its procedures Procurement Collusion among - WB to hold a training for contractors in WB Bank‟s INT, Completed Completed contractors, submission requirements for contract management, role of SASDT SARPS of fraudulent WB‟s INT during preparation and implementation information, any other of WB-funded projects corrupt behavior - During pre-bidding conference, carry out DOR/PCT Pre-bidding done/ process awareness campaign about sanctions to be stage of each undertaken against contractors who will be found contract and proved involved in corrupt practices (collusion, bribery, fraud, etc.) - Assess bidders‟ capacity, maintain regular updates DOR/PCT As when done/ process of schedule of rates and feedback from participating required contractors, and encourage proper “slicing and packaging” to match the contractor capacity - Carry out an analysis of bids and verification in DOR/PCT Bidding stage in the process doubtful cases; PCT to seek WB‟s advice for further of each actions if the cases are prevailing and take actions contract through PPMO. - If collusive, fraudulent or any other corrupt DOR/PCT Immediately in the process behavior is found and proved, invoke relevant when needed provision of the law (anti-corruption Act and Procurement Act) recommend the respective contractors to PPMO for blacklisting Intimidation (and/or - Continue using e-bidding for receiving bids from DOR, Continued done
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extortion) of contractors contractors during bidding and - Inform all contractors of existence of and DOR, Continued done execution of works encourage to use (domestic and international) complaint handling mechanisms in the Instruction To Bidders - In case of reports of intimidation (formal/ DOR/PCT/PMU Frequently in the process informal), conduct an awareness campaign among project stakeholders, including political parties present in respective districts, of potential threats and risks of possible intimidation to contractors during bidding and implementation periods to project implementation Cost variations and - Establish and regularly update a database of As warranted in the process contract extensions material prices - Encourage use of price adjustment clauses in the With each done contracts contract - In case of prior review, DOR to seek concurrence With each in the process for material extension of the stipulated time for DOR/PCT/PMU contract performance of the contract from the Bank. - Continue performance evaluation system for With each in the process design and supervision consultants contract - Disclose all variations to the awarded contracts on With each in the process the website contract Need in strengthening - Enhance the e-bidding system to include a tracking DOR in the process of transparency in option to alert DOR about delays of process from procurement decision- bid opening until award making process - Disclose bidding information, including summary DOR/PCT in the process of bid opening, name of the awarded contractor, Continuous engineer‟s cost estimate and bid cost, etc., on the RSDP website and at respective project site offices within 15 working days of contract awards (see more details in Appendix 1)
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Contract Management and Execution Improvement needed - Training on Project management and contract Continuous in the process incapacity of Project administration to be organized for DOR officials Officials in managing - Take departmental action against non-performer in in the process the contracts and accordance with the country‟s legal framework DOR/ MoPPW supervising the applicable to government officials Consultants and lack in accountability Timely Payment to ITAs to verify physical and financial progress as DOR Continuous will be initiated contractors well as verify contractual payments (financial and procurement) in compliance with contractual requirements at the time of technical audit of 20% of the contracts. Poor performance by - Maintain a database of contractors‟ performance DOR/PCT in the process contractors monitoring and analyze trends of contractors‟ performance - Recommend to agencies in charge of issuing MoPPW licenses to take action against the contractors as per the prevailing laws and regulations of Nepal based Continued on the results of the database of contractors performance monitoring - Promptly invoke available contractual remedial DOR/PCT/MoP actions against non performing Contractors and PW Consultants Financial Management Operationalize Financial - Submit FMIS based trimester report on a timely basis. DOR/PCT Start from Done Management Information December 31, System (FMIS) in DOR 2010. Dissemination of - Make publicly available reports on physical and DOR/PCT Trimester Done progress reports financial progress of all contracts on the DOR website, concerned project site offices s Capacity building on - Organize training program on financial management to DOR/PCT Semi-annual Training being planned to be financial management all cost centers at least once a year. organized in August 2011
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Annex 11 Revised Governance and Accountability Action Plan (GAAP)
Agency Issues Actions Timeline Status responsible Organizational Arrangements and Procedures strengthening - Designate staff within PCT and PMUs to be responsible for DOR, By effectiveness accountability implementation of GAAP at the respective central and field levels project‟s additional within the DOR field offices financing and its field offices - Designate staff with PCT and PMUs to be responsible for handling complaints received from beneficiaries/road users and contractors and Same reporting on the progress of handling complaints
- Submit trimester reports by PMUs to PCT and trimester reports by Trimester PCT to DG of DOR and WB project team on implementation of GAAP
- Update and disseminate information disclosure policy for DOR-Bank By appraisal projects in accordance with RTI 2007 (see Appendix 1)
- Disclose annual progress report on GAAP implementation DOR Annually website and at its Project site offices
- Set up (or improve where exist) a functional complaint handling Number of complaints mechanism as per ESMF. Publicize the existence of the functioning By effectiveness addressed/responded complaint handling mechanism and venues of its access for general exceed the total number of public, communities , and bidders/contractors (with a description of the complaints submitted to process of handling complaints) on the DOR website and concerned DOR/its field offices as project site offices revealed through community feedback surveys Technical improvement in - Regularly update material prices and use the updated prices in cost PCT/PMU Annually Deficiencies in designs design and cost estimates and cost estimates observed estimates during Bank reviews - Update GoN old works norms and develop another set for equipment DOR Periodically based method of construction – Design reviews by Independent
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Agency Issues Actions Timeline Status responsible Technical Auditors (ITA) for conducting reviews of designs and cost estimates as required
- Maintain database of unit rates for civil works major items PCT/PMU
- Compare estimated cost with market price established through competitive bidding
Need for - Establish several channels (text messages, hot line, on-line complaint DOR/PCT By effectiveness No. of reported cases of improvement in box, in addition to written complaints) for beneficiaries/road users to poor quality of roads quality of communicate problems related to quality of contract works and recently constructed or construction works condition of roads; advertise those channels on the information boards non-compliance of works at the project sites, concerned project site offices and DOR website with Technical Specifications in the - Strengthen internal quality controls: format of QA plan to be cleared contract by WB, and quality reports to be made available to Independent Technical Auditors for review Physical and Financial progress not going along - Enhance capacity building in QA for DOR and field offices
- Engage ITAs to check for 20% of contracts in compliance with QA Plan
- Engage Ex-post ITAs for conducting audits on 20% sample of works including the environmental and social safeguard aspects
- Use ITAs to review sample work done by supervising consultants (e.g., variation orders) during implementation
Safeguards Possible adverse - Apply the Environmental and Social Management Framework DOR/PCT/P By Appraisal No. of reported cases of impacts on the (ESMF) in project documents to determine and mitigate possible MU non-compliance with communities and adverse impacts of the project on the social and environmental aspects ESMF environment - Conduct consultations with communities on possible adverse impacts
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Agency Issues Actions Timeline Status responsible and proposed mitigation measures
Procurement Collusion among - WB to hold a training for contractors in WB requirements for contract Bank‟s INT, Completed Substantially smaller contractors, management, role of WB‟s INT during preparation and implementation SASDT number of bids (or one bid) submission of of WB-funded projects SARPS submitted compared to the fraudulent number of bidding information, any - During pre-bidding conference, carry out awareness campaign about DOR/PCT Pre-bidding documents purchased; other corrupt sanctions to be undertaken against contractors who will be found and stage of each Only one bid is submitted behavior proved involved in corrupt practices (collusion, bribery, fraud, etc.) contract and is very slightly below engineer‟s estimate; - Assess bidders‟ capacity, maintain regular updates of schedule of rates As when One bid is significantly and feedback from participating contractors, and encourage proper required below the rest of other “slicing and packaging” to match the contractor capacity submitted bids; Rotation of winning - Carry out an analysis of bids and verification in doubtful cases; PCT bidders by job, type of to seek WB‟s advice for further actions if the cases are prevailing and Bidding stage of work or geographical area take actions through PPMO. each contract
- If collusive, fraudulent or any other corrupt behavior is found and Immediately proved, invoke relevant provision of the law (anti-corruption Act and when needed Procurement Act) recommend the respective contractors to PPMO for blacklisting
Intimidation - Continue using e-bidding for receiving bids from contractors DOR, Continued Substantially smaller (and/or extortion) number of bids (or one bid) of contractors - Inform all contractors of existence of and encourage to use (domestic submitted compared to the during bidding and and international) complaint handling mechanisms in the Instruction To number of bidding execution of works Bidders documents purchased Very slow or no progress - In case of reports of intimidation (formal/ informal), conduct an DOR/PCT/ Frequently of civil works awareness campaign among project stakeholders, including political PMU Termination of the contract parties present in respective districts, of potential threats and risks of by the contractor
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Agency Issues Actions Timeline Status responsible possible intimidation to contractors during bidding and implementation periods to project implementation
Cost variations and - Encourage use of price adjustment clauses in the contracts DOR/PCT/ As warranted Large variation in scope contract extensions PMU and quantity during - In case of prior review, DOR to seek concurrence for material implementation extension of the stipulated time for performance of the contract from With each the Bank. contract Poor designs and frequent contract extensions - Continue performance evaluation system for design and supervision approved by supervising consultants consultants
- Disclose all variations to the awarded contracts on the website
Need in - Enhance the e-bidding system to include a tracking option to alert DOR Continuous Complaints from bidders strengthening of DOR about delays of process from bid opening until award about non-transparent transparency in procurement process procurement - Disclose bidding information, including summary of bid opening, DOR/PCT decision-making name of the awarded contractor, engineer‟s cost estimate and bid cost, process etc., on the RSDP website and at respective project site offices within 15 working days of contract awards (see more details in Appendix 1)
Contract Management and Execution Improvement - Training on Project management and contract administration to be DOR Continuous Contacts are delayed ,or needed incapacity organized for DOR officials MoPPW ITA‟s remarks are adverse of Project Officials on management and or in managing the - Take departmental action against non-performer in accordance with public complaints received contracts and the country‟s legal framework applicable to government officials supervising the Consultants and lack in accountability Timely Payment to ITAs to verify physical and financial progress as well as verify DOR Continuous Delay in payments to the contractors contractual payments (financial and procurement) in compliance with contractors. contractual requirements at the time of technical audit of 20% of the
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Agency Issues Actions Timeline Status responsible contracts.
Poor performance - Maintain a database of contractors‟ performance monitoring and DOR/PCT Continued Poorly performing by contractors analyze trends of contractors‟ performance contractors continue bidding/winning contracts - Recommend to agencies in charge of issuing licenses to take action against the contractors as per the prevailing laws and regulations of MoPPW Nepal based on the results of the database of contractors performance monitoring
- Promptly invoke available contractual remedial actions against non performing Contractors and Consultants Financial Management Operationalize - Submit FMIS based trimester report on a timely basis. DOR/PCT Start from Delay in submission of Financial December 31, financial monitoring Management 2010. reports Information System (FMIS) in DOR Dissemination of - Make publicly available reports on physical and financial progress of DOR/PCT Trimester Financial and physical progress reports all contracts on the DOR website, concerned project site offices s progress not matching
Capacity building - Organize training program on financial management to all cost centers DOR/PCT Annually Delay in sending the on financial at least once a year. financial information. management Develop Contract - Develop a computerized Contract Monitoring System to monitor DOR/PCT December 31, Transparency of payment Monitoring System payment transactions under each contract under execution. 2011 information, and timely to monitor the alerts of payments under payment each contract transactions under each contract
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