Application Title Bhutan Green Transport Program
Country/ Region Kingdom of Bhutan
Accredited Entity The World Bank
Approval Date 27 January 2019
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Notes • The PPF supports the development of projects and programs and enhance their quality at entry into the Fund’s pipeline. With a view to enhancing the balance and diversity of the project pipeline, the PPF is designed to especially support Direct Access Entities for projects in the micro-to-small size category. International Accredited Entities seeking project preparation support from the PPF are encouraged to do so especially for LDCs, SIDS and African countries where no Direct Access Entity is accredited. All Accredited Entities are encouraged to articulate counterpart support for project preparation within their requests for support from the PPF. • A PPF submission should include below documents: 1. PPF request (this form) 2. PPF No-Objection letter1 3. Concept Note • Please copy the National Designated Authority (ies) when submitting this PPF request. • Requests for support from the PPF should be submitted at the same time or following submission of a GCF Concept Note for a project or program. • Further information on GCF PPF can be found on GCF website Project Preparation Facility Guidelines.
1 Please note that the PPF No-Objection Letter is different from the Funding Proposal No-Objection Letter. PPF No-Objection Letter template can be downloaded from here.
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A. Executive Summary Name: Yoichiro Ishihara / Nupur Gupta Position: Resident Representative / Senior Transport Specialist Email: [email protected] / [email protected] Accredited Entity Tel: +975 77 182 122 / + 1 202 446 6051 (AE) Full Office address: World Bank Bhutan Country Office Bhutan Development Bank Building Norzin Lam, Chubachu, PO Box 244 Thimphu, Bhutan Has a Concept Note2 ☒ ☐ Yes No Has a No-Objection Letter3 been submitted in If yes, please indicate been submitted for this request association with this Yes ☒ No ☐ Project/Programme title: for support from the PPF? request for support from Bhutan Green Transport Program the PPF? Total cost of Project Preparation activities: US$ 1,526,543 Total Cost Amount requested from the PPF: US$ 526,311 Counterpart funding from the AE: US$ 869,731 Royal Government of Bhutan / other donors: US$ 130,500 Anticipated Duration Number of months to implement the Project Preparation activities: 11 months 1. This request seeks financial resources from the Project Preparation Facility (PPF) to develop a full proposal to the Green Climate Fund in support of a Green Transport Program for Bhutan’s urban center with special focus on Thimphu, the capital city (hereafter the “Program”). The Program will focus on low-emissions transport solutions that will enable Bhutan to achieve its sustainable development targets and Nationally Determined Contribution (NDC) as submitted in September 2015. This follows on Bhutan’s 2009 re-commitment to remain carbon neutral. The Program comprises three broadly interlinked interventions: (i) investments in green transport infrastructure; (ii) investments in zero emissions performance buses and other operating assets for bus services; and (iii) technical assistance and institutional development. PPF resources would support the following:
i. A masterplan for low emissions transport in Thimphu; ii. Technical preparations for non-motorized transport services; iii. Technical preparations for electric and zero-emission public transport mobility; and Summary of the request iv. Financial audit of PPF activities. for Project Preparation support 2. Outputs will support a final application for GCF funding of Thimphu’s Green Transport Program and will also serve to coordinate the activities of development partners who would co- finance alongside the GCF.
2 See here to download the Concept Note template. 3 Template for PPF No-Objection Letter can be downloaded here.
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B. Description of Project Preparation Activities Month Outputs and Activities (Please shade the implementation period from the starting month of the 4 Output and Activity in the schedule. Please also indicate the month of (Please select Activity Areas , activities, and deliverables as completion of each deliverable with “X” in the corresponding cell)
needed)
1 2 3 4 5 6 7 8 9
10 11 12 13
Activity and deliverable 1: Development of a master- plan for low emission transport in Thimphu. PPF activity area: Other project preparation activities
This activity will focus on framing the integrated set of interventions that can affect a step change in transport behaviours in Thimphu and other urban centre, including: (i) X X X X X X X travel demand management; (ii) policy and pricing interventions in the market for transport services; (iii) Transit Oriented Development planning; (iv) Non-motorised Transport and low carbon mobility planning (v) development of different policy regimes relating to transport for different zones of Thimphu. Extensive public consultations will accompany the tasks under this activity. Activity and deliverable 2: Technical preparations for Low-carbon Transport Program investments PPF activity area: Pre-feasibility, feasibility studies and project design
(i) travel demand modelling; (ii) technical preparations and surveys for physical works; (iii) preparations for X X X X X X X X X X bus terminals, and an upgraded bus depot; (iv) Analysis and forecasting of GHG emissions reductions; (v) planning for traffic management and road safety measures to support implementation; (vi) operations and maintenance planning; and (vii) financial planning. Extensive public consultations will accompany tasks under this activity. Activity and deliverable 3: Technical preparations for Non-motorized Transport Services PPF activity area: Pre-feasibility, feasibility studies and project design
This activity will prepare for non-motorized transport services, including: (i) development of preliminary X X X X X designs for pedestrian, bicycle ways, and e-bicycles to support initial public consultations; (ii) development of advanced engineering designs for works; and (iii) budgeting and planning for the execution of works. Extensive public consultation will accompany this activity.
4 The PPF can provide support within the following project preparation activity areas: i. Pre-feasibility and feasibility studies ii. Environmental, social and gender studies iii. Risk Assessments iv. Identification of programme and project level indicators Other activities of direct relevance for Direct Access Entities that the PPF can support are as follows: v. Pre-contract services, including the revision of tender documents vi. Advisory services and/or other services to financially structure a proposed activity vii. Other project preparation activities, where necessary, and with sufficient justification
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Activity and deliverable 4: Technical preparations for low or zero-emission public transport mobility PPF activity area: Pre-feasibility, feasibility studies and project design
This activity will explore policies and infrastructure needed to create a favourable and enabling X X X X X environment for electric buses including: (i) technical preparations and surveys for specification of electric vehicles in public transport and public sector fleets; (ii) assessment of infrastructure and operation and maintenance; and (iii) institutional development plan for the Bhutanese electric bus sector. Extensive public consultation will accompany tasks under this activity. Activity and deliverable 5: Preparation of an Environmental and Social Impact Assessment (ESIA) of Program works PPF activity area: Environmental, social and gender studies X X X X X X This will be necessary to ensure that Program investments comply with World Bank and other development partner social / environmental policies. Outputs will include a Resettlement Action Plan and Environmental and Social Management Plan. Activity and deliverable 6: Development of a financial model and accompanying economic model to assess the Program’s merits PPF activity area: Advisory services and/or other services to financially structure a proposed activity X X
These tools will help to plan Program investments for optimal returns and sustainability. Results will also present envisaged benefits to the GCF when the Program is proposed for investment support. Activity and deliverable 7: Gender analysis and preparation of a Gender Action Plan PPF activity area: Environmental, social and gender studies X X X X
This activity will develop a Gender Action Plan that will help guide program investments in accordance with GCF policy. Activity and deliverable 8: Program management consultancy PPF activity area: Other project preparation activities X X X X X X X X X X X This activity will coordinate all preparation tasks, facilitate RGoB’s participation, and lead outreach and communications efforts via web and social media channels. Estimated time for submission corresponding full X Funding Proposal to the GCF
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C. Justification of the Project Preparation Request
BACKGROUND FOR THE GREEN TRANSPORT PROGRAM FOR THIMPHU
3. The 2017 Population and Housing Census of Bhutan reveals that as of 30 May 2017, Bhutan’s total population is 735,553. Thimphu Dzongkha, the capital city of Bhutan, has the largest population with 138,736 persons, accounting for 19.1% of the total population of the country, followed by Chhukha with 68,966 persons (9.5%).5 Despite a relatively small national population, Bhutan’s urban areas are undergoing a significant transition. Between 1990 and 2010, the number of Bhutanese living in urban areas nearly tripled. Subsequently, the urban population has been increasing overtime from 196,111 persons (30.9%) in 2005 to 274,967 persons (37.8%) according to 2017 Population & Housing Census of Bhutan. Increasing rates of motor vehicle ownership and use have accompanied this trend bringing impacts on the urban environment (e.g. changes to land use, emissions, congestion, noise, health, etc.).
Table 1 Significant changes to Bhutan’s urban areas 1970 – 2015 Indicator 1970 1980 1990 2000 2010 2015 Urban population 17,747 41,801 87,759 143,405 250,595 299,425 Urban population (% of total) 6.1 10.1 16.4 25.4 34.8 38.6
Source: World Development Indicators
4. In parallel will rapid urbanization, Bhutan has experienced rapid growth in private vehicles over the last decade. Aside from 2012 and 2013 when vehicle imports were highly restricted, the number of vehicles has been increasing at roughly 9-10% per annum. The Royal Government of Bhutan projects that the consumption of petroleum products for surface transport is likely to grow 3-fold by 2020. Bhutan’s National Environment Commission noted in its 2011 communication under the United Nations Framework Convention on Climate Change that between the first GHG inventory year in 1994 and the second inventory year of 2000, emissions from energy (which includes transport) grew at 21.4% a year mostly due to transport and industry growth. There are over 96,307 vehicles in Bhutan as of June 2018. Roughly 1% of these are public passenger buses. Taxis and personalized vehicles are currently meeting the majority of travel needs for Bhutan’s population. For lower income households with fewer travel options, the absence of quality alternatives to private transport constrains their access to economic opportunity and social services.
Why “green” transport matters for Bhutan and for the example that Bhutan can demonstrate
5. According to the second national GHG inventory, Bhutan is a net sink for greenhouse gases. The estimated sequestration capacity of Bhutan’s forest areas is 6.3 million tons of CO2. In contrast, Bhutan’s estimated emissions in the year 2000 stood at only 1.6 million tons of CO2 equivalent. Bhutan’s advantages in this regard are largely due to expansive forest cover, low levels of industrial activity and almost 100% electricity generation through hydropower. Bhutan intends to remain carbon neutral where emission of greenhouse gases will not exceed carbon sequestration by introducing mitigation efforts in crucial sectors – especially transport. Bhutan has established national strategies for this purpose along with plans and actions such as Bhutan Transport 2040, 11th Five Year Plan of the Development, Intended Nationally Determined Contribution (INDC), the Technology Needs Assessment (TNA) and Technology Action Plan (TAP).
6. However, Bhutan’s commitments to remain carbon neutral are under threat. Bhutan’s National Green House Gas (GHG) inventory of 2000 identified the energy sector (which includes transport) as the second highest contributor of GHG emissions after agriculture. The Transport sector alone accounts for roughly 45% of all energy related emissions. At the current rate of increase in vehicle numbers, Bhutan’s commitment to remain carbon neutral will be significantly challenged. Large and growing demand for vehicles and fossil fuel imports reflects increasing demand for urban mobility that is largely being met by private transport modes. All fossil fuel used in Bhutan is imported which also creates a balance of payments issue that Bhutan is seeking to mitigate.
5 National Statistics Board
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7. Living Standards Surveys collected by Bhutan’s National Statistics Board (NSB) illustrate a disturbing trend that is entirely opposite from RGoB’s policy objectives relating to urban transport. Most notably, each successive Living Standards Survey between 2003 and 2012 has shown an increasing trend toward private vehicle ownership and use along with reductions in non-motorized transport use.
Figure 1 Trends in transport illustrated by living standard surveys
VEHICLE OWNERSHIP WALKING
▪ 2.84% of urban HH owned a ▪ 64.04% of urban HH walk to Post motorbike or scooter 2003 Office ▪ 4.47% of urban HH owned a motor ▪ 61.7% of urban HH walk to vehicle hospital or health centre
▪ 27.2% of urban HH walk to 2007 ▪ 24% of urban HH owned a car access Dzongkhag (i.e. regional government) headquarters
▪ 36% of urban HHs in Bhutan own a car (42.6% in Thimphu) ▪ 20.5% of urban HH walk to 2012 access Dzongkhag (i.e. regional ▪ 5% own a motorbike or scooter government) headquarters (5.2% in Thimphu)
Sources: Bhutan Living Standard Surveys 2003, 2007, 2012
8. The trends noted above are indicative of rising incomes, behavioral factors, and under developed alternatives. The growing need for improved mobility reflects Bhutan’s economic development. However, the way that need is being met indicates that non-motorized transport infrastructure and urban public transport systems have not kept pace. Available data on public transport use confirms this. Less than one third of urban households in Bhutan reported using public transport in a given month in 2012. Improving the availability and quality of urban transport services in Thimphu offers an opportunity to change this trend and meet increased demands for mobility in a more sustainable manner. It is also important to note that this can be achieved with greater inclusion for lower income households as well as environmental benefits relative to private transport. Capturing these twin benefits will require a step change in both infrastructure and the operating capacity of public transport services.
Policy framework and selected initiatives already in place that need scaling up
9. The Royal Government of Bhutan (RGoB) has set out its policy for urban transport in a guiding document known as “Bhutan Transport 2040 Integrated Strategic Vision” as summarized below:
“The urban transport strategy should focus on providing attractive public transport services and facilities for pedestrians, so that public transport and walking become the dominant mode in the central area and for short trips. The strategy must also seek to control the impact of private cars through careful management of vehicle numbers and use. The overall objective is to create vibrant, functional, and liveable “green” cities, thus minimizing the adverse effects of traffic growth.”
10. The Royal Government of Bhutan has already taken action aligned with this policy to try and stem rising dependence on private conventional vehicles and fossil fuel. This began with the development of a City Bus Service in 1999 with a fleet of two buses. Services have expanded greatly and now include a fleet of 46 buses that carry over 6,000 people per day. In addition, City Bus Co.’s management has achieved many positive results such as expanding the bus fleet, piloting the use of pre-paid e-tickets, devising a system for handling customer grievances, and piloting new infrastructure designs for bus shelters.
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11. The Royal Government of Bhutan has adopted Vehicle Emissions Roadmap Bhutan in 2017 to maintain a pristine environment with clean air and with minimum emissions from the transport sector. In this Roadmap, five core policies have been identified for implementation based on their potential impact, costs and benefits as follows:
i. In line with the Indian fuel standard Bhutan will only import diesel and gasoline with less than 50ppm Sulphur as of January 2018 and diesel and gasoline with less than 10ppm Sulphur as of January 2021; ii. Bhutan will implement in line with India, new vehicle emission standards for gasoline and diesel vehicles requiring as of January 2018 BS-IV (equivalent to Euro 4) and as of January 2021 BS-VI (Euro 6); iii. Bhutan will upgrade the current vehicle inspection/maintenance system to improve impact and controls; iv. Bhutan will restrict the import of diesel powered cars and light vehicles less than 3.5 tonnes as of January 2018; v. Bhutan will design a low-carbon vehicle strategy and tap international climate finance to assist in the implementation of latter.
12. Bhutan has already made initial steps towards promoting low carbon vehicles by reducing taxes on hybrid and electric cars. Going forward, RGoB intends to focus on taxis, buses, and urban freight vehicles as these have the largest impact on air quality and have travel patterns that can potentially accommodate charging. Bhutan is currently realizing a low-carbon commercial vehicle strategy including financial instruments to mass deploy low carbon vehicles. Bhutan intends to tap available international climate funds to assist the country in implementing a low-carbon vehicle policy.
13. Public transport also features prominently as a priority measure to reduce emissions. In 2011 the RGoB obtained support from the World Bank Group’s International Finance Corporation (IFC) for a feasibility study of Bus Rapid Transport in the capital city of Thimphu. This work assessed the viability of different transport solutions and identified a Bus Rapid Transit (BRT) corridor that would run from Babesa (Thimphu’s southern extreme) to Taba and possibly Dechencholing / Kabesa (near Thimphu’s northern extreme). The IFC-supported study confirmed the economic viability of a BRT type solution. However, the study had identified PPP as a delivery mechanism and policy makers did not perceive that the fiscal liabilities of executing a long-term PPP contract with an international bus operator were sustainable. In addition, RGoB has sought to focus on more comprehensive transport solutions beyond a BRT alone. These include the further development of the existing City Bus Service as well as complementary policy and infrastructure initiatives around non-motorized transport. A key finding from the IFC-supported feasibility study was that the highest levels of modal shift to public transport are likely to be achievable from a corridor that runs along Thimphu’s north south axis with measures to improve bus priority in route and service headways of less than 10 minutes. Achieving this and integrating a BRT system within a wider set of transport interventions would be the key aims of Bhutan’s full proposal to the GCF for the financing of capital investment.
14. Since the time of the 2011 BRT feasibility study, demand for urban bus services in Thimphu has increased as has the supply of public bus services. This follows on from a doubling of the city bus fleet in 2012 to expand services and supplied capacity and the additional of 18 new buses in 2016 (a 53% fleet increase). Considering increasing passenger demand and further land development throughout Thimphu, there is a need to review the configuration of Thimphu’s proposed BRT infrastructure, particularly regarding the technical scope of busways. These may include dedicated single direction lanes, single lane dual direction lanes with signaling control, or a combination thereof with different degrees of segregation from other traffic at different points along the route. The World Bank and RGoB are seeking to expand and update the 2011 analysis with further engineering due diligence following initial GCF concept stage in order to fully define the scope of civil works. PPF funds would support these key preparation tasks to meet an international standard of technical, environmental, and social due diligence.
15. With assistance from UNDP in 2015, The RGoB conducted the pre-feasibility study on Intelligent Transport Systems. This recommended three phases of action (short, medium, and long term). Some of the important recommendations are as follows: (i) establishing an appropriate institutional framework; (ii) raising of community awareness on ITS; (iii) training in traffic engineering and ITS; (iv) development and operationalization of a bus information system; (v) establishment of bus bays and bus stop shelters; and (vi) introducing Transit Signal Priority (TSP) to increase the operating speed and reliability of bus services. The Green Technology Center Korea is now
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further building on these findings and preparing an ITS pilot for selected bus routes in Thimphu in order to demonstrate and prove RGoB’s concept for better services.
Bhutanese Justification on GCF funding and Project Preparation Facility (PPF) Justification #1: Meeting Bhutan’s international climate commitments amidst fiscal constraints
16. Bhutan has made a commitment to the international community to remain carbon neutral while also advancing from its status as a Least Developed Country. To meet its commitment, Bhutan has invested heavily in renewable energy and specifically hydropower generation. Hydropower related debt amounts to approximately 190% of one year’s GDP for Bhutan. Bhutan’s fiscal capacity is accordingly limited and efforts to reduce GHG emission in other areas would otherwise not be possible without international support. The GCF’s contribution can support Bhutan to meet its international commitments. Specific incremental advantages of PPF funding include: (i) allowing Bhutan to develop a comprehensive effort to prepare investments across transport modes instead of a piecemeal approach that available funds would otherwise support; and (ii) consideration for advanced technologies and infrastructure solutions that require costlier international engineering expertise.
Justification #2: Bhutan can sustain environmentally beneficial investments once they are made
17. Bhutan’s capacity to directly fund upfront capital investments in urban transport systems is limited and RGoB is accordingly seeking grant and concessional support from the international community. However, RGoB has shown willingness and capacity to cover the cost of sustainable service delivery to customers. The Royal Government of Bhutan, like many governments, subsidizes public bus transport explicitly (and with transparency in the budget) as a matter of policy. The Ministry of Finance has informed the World Bank’s team that this policy will continue. As of 2015 RGoB subsidies to City Bus Service operating costs totaled approximately US$358,300 which is fiscally affordable considering it represents only .002% of the national expenditure budget for FY14/15. Similarly, Bhutan has historically self-funded the purchase of buses to renew the City Bus fleet as aging buses have retired or relegated to less intensive use. The explicit nature of this policy commitment and RGoB’s positive fiscal outlook with respect to funding operating costs provide strong security that continued financial subsidies for the operation of public transport services are sustainable.
Justification #3: Bhutan’s governance and size are an advantage for GCF demonstration
18. Bhutan’s size and the stability of its governance environment are also key advantages for the proposed GCF intervention. Specifically, Bhutan’s Governance indicators are among the best in South Asia and well above the average for IDA-eligible countries and low income countries in general (see below). This enhances the chances of success for the critical institutional requirements of improving transport services. Similarly, the scale of Bhutan’s capital city of Thimphu makes it possible for moderately sized investments to have large impacts with clearly attributable cause and effect. The World Bank’s experience of urban transport interventions in larger South Asian cities illustrate the difficulties of linking cause and effect amidst the scale of exogenous influences in addition to the inherent challenges of working with larger and more numerous institutions. In contrast, GCF support can enable Bhutan to serve as an example for a different path in South Asia – one that puts people, their environment, and the overall quality of life ahead of private vehicles. This model would demonstrate a sustainable development path in a region where the impacts of rising incomes and private vehicle use have significantly degraded the urban environment and contributed to global climate change.
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Figure 2 Selected governance indicators for Bhutan
Source: World Development Indicators - Country Policy and Institutional Assessment (CPIA)
Bhutan and the United Nations Framework Convention on Climate Change
19. The transport sector has been identified as a key contributor to Bhutan’s rising emissions as communicated under the United Nations Framework Convention on Climate Change (UNFCCC). In 2003 and again in 2013, Bhutan undertook a Technology Needs Assessment (TNA) for climate change mitigation to identify needs and priorities for deploying climate technologies within national development objectives. Bhutan’s 2013 TNA includes proposals for Intelligent Transport Systems and some form of dedicated right-of way public transport solution that would be accompanied by improvements in non-motorized transport. These proposals align with the elements proposed for PPF funding and also align with Bhutan’s national development plans. Specifically, outcome #1 for Bhutan’s 11th Five Year Plan seeks to enhance “access to adequate, sustainable and inclusive public transport”. Furthermore, Bhutan’s overall national goal for the 11th Plan, specifically “Self-reliance and Inclusive Green Socio-Economic Development”.
20. In accordance with relevant paragraphs of Decisions 1/CP.19 and 1/CP.20 the Kingdom of Bhutan communicate its Intended Nationally Determined Contribution (INDC) and re-communicates their resolve to remain carbon neutral by ensuring that their emission of GHGs does not exceed the sink capacity of their forests. While making this sincere commitment to remain carbon neutral and put forward this INDC, in particular, the government established priority strategies, plans and actions for mitigation to support promotion of low carbon transport system by (i) improving mass transit and demand side management of personal modes of transport; (ii) exploring alternative modes of transport to road transport such as rail, water and gravity ropeways; (iii) improving efficiency in freight transport; (iv) promoting non- motorized transport and non-fossil fuel powered transport such as electric and fuel cell vehicles; (v) improving efficiency and emissions from existing vehicles through standards and capacity building; and (vi) promoting use of appropriate intelligent transport systems. However international support will be essential to ensure success in implementing the strategies, plans and actions for low-carbon transport development.
Counterpart resources for complementation of GCF PPF fund
21. Transport sector interventions aimed at reducing dependence on private vehicles and fossil fuel imports have not been significant. Therefore, there is a need to prepare Thimphu for a step change in transport behavior that can avoid a conventional high-emissions development path for enhanced mobility. To this end, the World Bank (WB) and the Green Technology Center Korea (GTCK) have been in consultation with the Royal Government of Bhutan (RGoB) to develop a comprehensive multi-partner initiative under the Program. This includes three interlinked interventions: (i) investments in green transport infrastructure; (ii) investments in zero emissions performance buses and other operating assets for bus services; and (iii) technical assistance and institutional development. The Royal Government of Bhutan has envisaged that this Program would also be put forward for potential support by the Green Climate Fund (GCF).
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Completing the large amount of technical preparations required to achieve the readiness required for GCF consideration is a primary reason for this request to the Project Preparation Facility (PPF).
22. There are eight specific activities relating to the Program: (i) development of a master-plan for low emission transport in Thimphu; (ii) technical preparations for low-emission transport program investments; (iii) technical preparations for non-motorized transport services; (iv) technical preparations for electric and zero-emission public transport mobility; (v) preparation of an environmental and social impact assessment (ESIA) of program works; (vi) development of a financial model and accompanying economic model to assess the program’s merits; (vii) gender analysis and preparation of a gender action plan; and (viii) program management consultancy. The World Bank and RGoB are mobilizing complementary co-financing resources in the amount of US$ 1,000,231 to strengthen development of the corresponding funding proposal. Co-financing would support:
i. Activity 2: Technical preparations for low-emission transport program investments ii. Activity 5: Environmental and Social Impact Assessment, Environment / Social Management Plan, and Resettlement Action Plan iii. Activity 6: Financial and economic analysis iv. Activity 7: Gender analysis and action plan; and v. Activity 8: Program preparation management consultancy.
Table 2 Co-financing Plan Module Est.Amt(USD)
Activity 2: Technical preparations for low-emission 494,500 public transport program investments Activity 5: ESIA, EMP, RAP 130,500 Activity 6: Financial and economic analysis 45,000 Activity 7: Gender analysis and action plan 47,500
Activity 8: Program preparation management 164,000 consultancy (individual services & expenses) Unallocated contingency 43,751 World Bank supervision 75,000 Totals 1,000,231
D. Implementation Arrangement 23. The World Bank will serve as the accredited entity and manager of the PPF fund with responsibility for fiduciary, social / environmental, and technical supervision. The World Bank will also coordinate reporting aspects of PPF activities. The World Bank will implement Activity 1: development of a masterplan for low emissions transport as well as Activity 6. Development of a financial model and accompanying economic model to assess the Program’s merits and will procure individual consultancy resources to undertake Activity 8. Program management consultancy in cooperation with GHNC and MoF.
24. Green Technology Center Korea (GTCK) is the Executive Entity (EE) that is supporting the execution of PPF activities with technical assistance to the RGoB’s Task Force. This will include assistance to Activity 2. Technical preparations for low-carbon transport program investments, Activity 3. technical preparations for non- motorized transport services, and Activity 4. technical preparations for low or zero-emission public transport mobility in cooperation with NEC, MOIC, RSTA, Bhutan Postal Corporation and Thimphu Thromde. The budget for GTCK’s support is not included in the
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Table 3 Program implementation by week Activity Start End Activity 1: Low emissions master plan 6 29 Activity 2: Technical preparations for low-carbon public transport program investments 6 41 Activity 3: Technical preparations for non-motorized transport services 12 30 Activity 4: Technical preparations for low or zero-emission public transport mobility 12 30 Activity 5: ESIA, ESMP, RAP 8 30 Activity 6: Financial and economic analysis 20 27 Activity 7: Gender analysis and action plan 6 17 Activity 8: Program management consultancy 1 44
25. Procurement of consulting services by RGoB implementing entities will proceed in accordance with "Guidelines for selection and employment of consultants under IBRD loans and IDA credits and grants" 2011, revised 2014. Procurement of goods and office facilities by RGoB implementing entities will proceed in accordance with "Guidelines for Procurement under IBRD Loans and IDA Credits and Grants" 2011, revised 2014. Procurement of consultants by the World Bank will proceed in accordance with “AMS 15.01 Selection and Use of Consultants by The World Bank Group for Operational Purpose." All procurement for implementing the PPF activities will be proceed in accordance with The World Bank Group’s procurement policy.
26. The implementation approach envisaged for deploying PPF funds would sit under the aegis of the Royal Government of Bhutan’s multi-sectoral “Task Force” created by Executive Order C2/172 dated January, 5 2016 with minor adjustment as necessary, in response to traffic congestion and urban transport challenges in Thimphu. This body will serve as an overall client for PPF activities and will provide RGoB’s guidance to teams working on PPF assignments, outputs, and the final GCF application for investment financing that would go for consideration to the GCF board. Each Task Force institution will nominate a PPF liaison who will both manage interaction with his / her parent institution and serve as the point of contact with an overall Program Management Consultancy. Specific institutions represented on the Task Force and their corresponding roles for supporting PPF tasks include:
▪ National Environment Commission (NEC): NEC leads the national level climate change actions, including monitoring and reporting of GHGs. Also, leading formulation of vehicle emission roadmap and low carbon transport strategy. NEC will lead Activity 5. preparation of an Environmental and Social Impact Assessment (ESIA) of Program works and will also lead on the GHG analysis for the proposed BRT under Activities 2, 4 and 7. ▪ Ministry of Information and Communications: is the coordinating ministry for national policies relating to urban transport. MOIC is the designated chair of RGoB’s Task Force and will have a lead role in leading Activity 1: development of a masterplan for low emissions transport. ▪ Gross National Happiness Commission (GCF NDA) is RGoB’s counterparty for all foreign grant assistance and also Bhutan’s National Designated Authority for the GCF. GNHC will lead Activity 7. gender analysis and preparation of a Gender Action Plan and Activity 8. program management consultancy. ▪ Ministry of Finance: is RGoB’s designated counterparty for all foreign loan / credit assistance and also manages the national budget system, the pool of government vehicles, and the development of revenue generating policies and vehicle taxation regimes. MOF will lead Activity 6. development of a financial model and accompanying economic model to assess the Program’s merits. ▪ Thimphu Thromde: has authority under Local Government Act of 2009 and the Thromde Act of 2007 to manage land use in Thimphu and to develop urban transport services. Thimphu Thromde will serve as the lead institution for Activity 2. technical preparations for low-carbon transport program investments, Activity 3. technical preparations for non-motorized transport services, and Activity 4. technical preparations for low or zero- emission public transport mobility with support from MoIC.
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▪ Road Safety and Transport Authority (RSTA), MoIC: is mandated under the Road Safety & Transport Act (1999) to approve public transport routes, manage fares, and regulate vehicle standards. RSTA will provide inputs to MOIC under Activity 1: development of a masterplan for low emissions transport and will also serve as the lead agency for the proposed Public Service Agreement for strengthening the governance of public transport services in Thimphu. ▪ Bhutan Postal Corporation (including City Bus Service) Bhutan Post owns and operates the City Bus Service, and will have the lead role in managing preparation activities relating to the City Bus Depot under Activity 2 a and provide operating inputs to preparation activities concerning bus terminals, electric buses, and the proposed BRT operational planning elements of Activity 2. technical preparations for low-carbon transport program investments and Activity 3. technical preparations for low or zero-emission public transport. ▪ Royal Bhutan Police (Traffic): The Royal Bhutan Police handle traffic enforcement and have jurisdiction for enforcement on the City Bus Service. The Royal Bhutan Police will provide inputs to MOIC relating to enforcement issues under Activity 1: development of a masterplan for low emissions transport.
27. Additionally, the following institutions that do not sit on RGoB’s Task Force will have roles in the delivery of specific PPF tasks including:
▪ Ministry of Works and Human Settlements (MoWHS): will support Thimphu Thromde with implementing Activity 2. technical preparations for low-carbon transport program investments, Activity 3. technical preparations for non-motorized transport services and Activity 4. technical preparations for low or zero-emission public transport mobility, and will have a lead role in managing preparation activities relating to the proposed BRT system.
28. Activity 8 for a Program Management Consultancy will play a key role in supporting RGoB institutions to manage their engagement with experts and the overall scope of different PPF activities. Specifically, the program management consultancy will: (i) coordinate implementation of different PPF activities; (ii) coordinate briefings to the Task Force and other RGoB stakeholders; (iii) source and manage individual experts to handle quality reviews on PPF funded outputs; (iv) manage and facilitate public consultations and communications; (v) lead social media and web-communications initiatives; and (v) report to the GCF and other development partners. The Program Management Consultancy would assist RGoB’s task force to manage the overall PPF budget and delivery program. Terms of reference for each individual activity are attached in annexure.
29. The proposed modality for execution modality for contracts required for Program preparation activities is summarized below.
Contract item Est. Amount Category Firm / Selection National / Procuring (USD) Individuals method international entity bidding Activity 1: Master plan International The World for low emissions 109,250 Services Firm / JV - competitive Bank transport in Thimphu bidding Activity 2: Technical International preparations for low- Thimphu 494,500 Services Firm / JV QCBS competitive carbon transport Thromde bidding program investments Activity 3: Technical International preparations for non- Thimphu 193,100 Services Firm / JV QCBS competitive motorized transport Thromde bidding services Activity 4: Technical International preparations for low or Thimphu 175,000 Firm / JV QCBS competitive zero-emission public Thromde bidding transport mobility
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Activity 5: ESIA, National National ESMP, RAP 130,500 Services Firm / JV QCBS competitive Environment bidding Authority Activity 6: Financial International The World and economic analysis 45,000 Services Individuals - competitive Bank bidding Activity 7: Gender Bhutan Post / analysis and action 47,500 Services Individuals CQS Mixed City Bus plan Activity 8: Program preparation International The World management 146,000 Services Individuals - competitive Bank consultancy (individual bidding services & expenses) Activity 8: Program preparation Facilities Thimphu management 17,500 and - Shopping - Thromde consultancy (facilities goods and goods)
E. Budget6 Details and Disbursement Schedule
Detailed budget was removed due to confidential information
6 “Sub-total cost” must be provided for each activity, and broken down by the “cost categories” (e.g. Consultants, Travel, Equipment, Training & workshops, Others). Please provide sufficient breakdown of costs to enable effective review. -
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ANNEX A GENERAL PROVISIONS FOR ALL TOR
I. DEFINITIONS AND GUIDANCE FOR DESIGNS AND PUBLIC CONSULTATIONS
A. Feasibility Study and Design Guidance
30. Throughout Terms of Reference, the following terms will serve to describe the scope of work for feasibility study and design activities:
▪ “Conceptual designs” refers to architectural designs that are approximate in nature and intended to convey a visual concept for public consultation and subsequent refinement. Conceptual designs should entail basic CAD renderings, overall site plans, and / or sketches that account for site specific constraints but may only have limited dimensional information as required to test aesthetic appeal, community perceptions, basic functionality, or to provide approximate cost estimates (+/- 30%). ▪ “Preliminary designs” refer to engineering designs or architectural plans that are sufficiently detailed to provide an adequate basis for subsequent detailed design at a later stage. These should fully define the spatial envelope for all investments as well as the fully dimensioned concept that finished forms will take. Preliminary designs should be sufficiently detailed as to allow for preliminary bills of quantity that are accurate to within +/- 15% of materials and labour required during eventual construction. For cost estimates, the Team should use local reference rates as used by Thimphu Thromde / the Ministry of Works and Human Settlements. Preliminary designs should be fit for use as the basis for framing and evaluating responses to requests for expressions of interest for civil works contracts. ▪ “Detailed designs” refer to engineering designs or architectural plans that are fully complete and ready for competitive tendering as lump-sum contracts or warranted reference designs under design-build approaches. Detailed designs should be based on thorough site surveys and should include final bills of quantity for labour and materials and estimated costs to be accurate within a target of +/- 10% contingency.
31. Design activities will accommodate the phasing of Social Impact Assessment, Environmental Impact Assessment, and Gender related analysis milestones that may affect design considerations. These assessments will be conducted in parallel to design work as required by World Bank policies. Teams will collaborate and coordinate closely with firms / individuals assigned to those tasks in an effort to ensure that impact mitigations are fully incorporated in the design of works, tender specifications, and subsequent contract documents.
32. All designs should include sensitivity for the architectural themes of Thimphu which are rooted in Bhutanese tradition. All designs should include robust consideration for public safety and avoiding or mitigating adverse social impact of infrastructure modifications on private residences and businesses.
33. Throughout all tasks, Teams should base designs on cost-effective solutions. Like all governments, the RGoB is fiscally constrained and has many competing priorities. While development partners such as the World Bank, GTCK, UNDP, and GCF have and will continue to provide support for infrastructure investments, this support is finite. There is a need to control costs in order to achieve the breadth of RGoB’s urban transport aims. There is also a need for Teams to focus on selecting engineering solutions that optimize the tradeoff between upfront costs and lifecycle costs (financial and economic) so that the subsequent operation and maintenance of infrastructure is inclusive, affordable and sustainable in a social and environmental sense.
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B. Guidance for consultations
34. With support from the Program Management Consultancy, teams will be required to hold public consultations regarding proposed designs. These will entail brief presentations at each consultation event as well as development / distribution of informational materials that are fit for public consumption (e.g. handouts, information posters, electronic media, etc.). All consultations will be documented with agendas, attendance sheets, minutes of discussion, and photos taken during the event. The Program Management Consultancy will provide a means for receiving comments both in physical form (e.g. hand written documents or via post) and via electronic means (e.g. a dedicated e-mail account or web-portal). Under guidance from the Program Management Consultancy, Teams will compile comments from each consultation event and compile responses for consideration by RGoB stakeholders and development partners. Teams will compile, organize, regularly update, and provide access to an electronic library that contains all documentation and comments collected during the assignment. The World Bank will provide Teams with access to the Bank’s “OneDrive” file sharing system for this purpose.
II. ADMINISTRATIVE PROVISIONS A. Data ownership
35. The Royal Government of Bhutan shall own all right, title and interest, including all intellectual property rights, in and to any reports, document, computer software (in source code and object code form), or other deliverable (whether in hard-copy, electro-magnetic, or machine readable format) created or used under this assignment. Teams will provide additional soft copies of all data in Microsoft Excel or Access formats. For the avoidance of doubt, this will include all data used in the development of transport models, financial models, economic models, CAD files, or other technical models whether locally collected or drawn from other sources such that all analysis should be replicable after completion of the assignment without requiring any additional data sources.
B. Guidance on joint ventures or sub-contracted services (if applicable)
36. Teams will adhere to the following requirements for sub-contract services:
▪ The principal firm will notify the Program Management Consultancy not less than 15 calendar days before making changes to subcontracting arrangements that comprise more than 5% of the assignment budget and/or entail changes to a nominated CV. Changes to nominated CVs or subcontracting arrangements after tendering will be subject to review and “no objection” by the procuring authority for each assignment; ▪ Payment to subcontracted firms or individuals should be “back to back” such that sub-consultants are paid immediately upon payment to the principal firm without delay; and ▪ Firms or individuals that have been sanctioned by the World Bank will not be eligible for engagement in any joint venture or sub-contacted arrangement under the assignment.
37. All firms or individuals should express commitment in writing to adhere to the relevant provisions of the World Bank’s Guidelines on Preventing and Combating Fraud and Corruption in Projects financed by IBRD Loans and IDA Credits and Grants for all activities under their respective assignments.
C. Language of reports and data
38. Teams will provide all reports and data sets in well written English. Where necessary, Teams will engage editors to ensure that all outputs meet a standard of quality that is fit for public dissemination. All written materials should be packaged concisely with graphics, figures, and tables as required to facilitate communications. All data files should include annotations in English that will enable RGoB / different development partners to retrace analytical steps and make future use of all data and analysis.
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D. Supervision and Management
39. As detailed in individual assignment TOR, the Team will present interim findings and final results to a Task Force consisting of RGoB officials and representatives empowered by Executive Order C2/172 dated January 5th, 2016. The Royal Government of Bhutan has established this multi-sectoral Taskforce to study and come up with immediate measures to ease the traffic situation in Thimphu, under the coordination of the Ministry of Information and Communication. On a day-to-day basis, Teams will report to the Program Management Consultancy engaged to assist the RGoB’s Task Force in managing all activities relating to preparatory assignments. Teams will provide the Program Management Consultancy with inputs and access to data, reports, and other information as required to facilitate quality reviews and make reports to the Task Force.
40. Where tasks entail seeking feedback or endorsement from RGoB’s Task Force, Teams will allow 10 working days in their work programs to accommodate RGoB’s review and comments. Beyond this time, teams may seek support from the Program Management Consultancy and the World Bank’s Task Team to facilitate RGoB’s review. While awaiting feedback beyond 10 working days, Teams should endeavor to alter work programs to develop subsequent tasks while awaiting feedback. If feedback is not provided within 15 working days Teams may consider their original proposal’s approved for the sake of completing assignment tasks. For the purpose of all assignment tasks “working day” shall mean any day that is not a Saturday or Sunday and is not a holiday for RGoB offices in the Thimphu area.
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ANNEX B TOR FOR A LOW EMISSIONS MASTERPLAN
III. OBJECTIVES ▪ Assess opportunities for Transit Oriented Development (TOD), Non-motorized Transport (NMT) and Low-carbon Mobility (LCM) in and around Thimphu and develop TOD, NMT and LCM plans for specific locations; ▪ Prepare an approach for zoning transport access within Thimphu that delineates certain segments of the city for different types of “green” policy interventions; ▪ Develop Travel Demand Management interventions that will apply to specific transport Zones; ▪ Develop TOD, NMT and LCM plans for Thimphu that will modify the existing Thimphu Structural Plan; ▪ Provide financial analysis of proposed TOD, NMT and LCM plans and Action Plan interventions as inputs to inform RGoB’s decisions; and ▪ To prepare milestones and implementation paths for TOD, NMT and LCM plans and Action Plans. IV. SCOPE OF WORK
41. The scope of services under this assignment includes: (i) GIS mapping; (ii) site assessment and cadastral survey verification; (iii) land use planning; (iv) multi-criteria analysis and prioritization using the 3V Framework; (v) financial analysis (vi) stakeholder consultation; (vii) policy analysis and recommendation; (viii) recommendation on legal and regulatory mechanisms required for implementation. For the avoidance of doubt, recommendations on legal and regulatory mechanisms will be technical in nature and will not constitute legal advice.
V. DETAILED TASK DESCRIPTION A. Task 1: Base Map to support planning
42. The Team will develop a detailed Base Map of the larger Thimphu area and the proposed transport network (including the proposed BRT) in close consultation with Thimphu Thromde’s Chief Planner. The geographical boundaries of this map will include all population areas from Barbesa at Thimphu’s southern terminus to Kabesa at the Thimphu area’s northern extreme. The Base Map will reflect land use, land ownership, and demographic data. Specifically, the Team’s Base Map will include layers for the following:
▪ Current land use and Floor Space Index (FSI): The Team’s base map should show current land use classifications including commercial, residential, industrial, mixed use, etc. In addition, the Consultant should qualify each land use by the current FSI and maximum authorized FSI and estimate the size of additional development allowed under current FSI. ▪ Land ownership: For each plot, the Team will provide information by cadastral plot regarding the nature of land use and ownership details. If possible, the Consultant’s Base Map should also include the specific name and contact details of land owners identified; ▪ Population and demographic data: this should be reflected in geocoded location information (or census tract enumeration zones), with population figures and basic demographic information; ▪ Jobs data: the Base Map will include an estimation for the number of jobs at each location in addition to an attempted classification of those jobs (e.g. professional, retail, manufacturing, etc.); ▪ Existing and proposed road and pedestrian network: The Team’s Base Map will contain layers with information on the road and pedestrian network that can be used for routing calculations; ▪ BRT, Bus and NMT transit services: The Team will compile and visually classify information about transport service schedules that serve the Base Map area. This will include geocoded stop locations
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and will follow General Transit Feed Specification (GTFS) format for the classification of services. The Team will also map the location of all NMT infrastructure along the study corridor. ▪ Amenities, services, and other place value drivers: The Team’s base map will include the location of services and amenities that are important drivers of place value. This will include, but will not be limited to: (i) different types of shops and businesses frequented during daily life; (ii) type of employment opportunities; (iii) housing availability by type; (iv) parks and other green spaces; (v) schools; (vi) medical facilities; (vii) non-motorized transport facilities; and (viii) cultural and / or religious sites. ▪ Development Control Regulations along the proposed Corridor: The Team will review existing Development Control Regulations along the proposed major transport corridors and document these in the base map as layers. ▪ Review of existing real estate trends: The Team will provide an analysis of existing real estate trends in the study area in terms of existing market supply and demand across categories of property and price levels (rental and purchase). The team will seek to display these visually on the base map using layers to indicate rates of price increase, densification / subdivision, and transaction volumes. ▪ Inventory of Thimphu Thromde and other Government land owned within the study area: This will include basic descriptions for each plot in a tabular format with data fields for size, current use, estimated currently value, nearest bus stop / shelter, distance to nearest bus stop / shelter, and other basic transport data. ▪ Institutional Boundaries: The Base Map will identify the body / bodies that have statutory local planning authority and their respective boundaries with in the larger Thimphu area.
43. The Team’s activities should be closely coordinated with Thimphu Thromde and should draw on information contained in the existing Thimphu Structural Plan. Thimphu Thromde will provide the Team will access to land records and other sources of data for inclusion in the Base Map described in this Task. However, the Team will be responsible for confirming the correctness of all data received by “ground truthing” and other forms of validation. The World Bank will also provide the Team with bus route maps and existing stop / shelter locations as identified in 2015/16.
44. Where data required for the base map is missing or otherwise incomplete, the Team will work closely with Thimphu Thromde to identify workarounds or alternative approaches. This may include using proxy information or approximations. Any agreed workarounds, approximations, or methodologies for using proxy information should be documented in a brief note to inform subsequent users of base map data. This note should also capture information regarding the sources of data and contact persons who may have provided it.
45. The outputs of this task will include: (i) a digital base map with layers to depict relevant information for this tasks; (ii) an inventory of Thimphu Thromde and other Government properties within the study area that may provide ready investment opportunities; (iii) a briefing note on data sources, and any “workarounds” used in developing the base map.
B. Task 2. Multi-criteria analysis and prioritization using the 3V Framework
46. The Team will conduct an analysis of the economic development potential of different nodes along Thimphu’s transport network using a 3V framework based on the following dimensions:
▪ The Node Value, which describes the significance of a station or hub within Thimphu’s transit network; this value is assessed based on traffic intensity, level of intermodal connectivity, and centrality of a station within Thimphu’s metro network;
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▪ The Place Value, which describes the urban qualities of an area around a location including daily needs that are addressable by walking and biking which is also a function of the diversity of land use in an area; and ▪ The Market Potential Value, which describes the opportunity for increases in market value around a particular site.
47. The Team will follow the World Bank’s recommended methodology for assessing Node, Place, and Market Value (which is publicly available and will be provided to the Team). Nodes selected for analysis will include bus stop locations (particularly along the BRT corridor) and multi-modal interchange points such as Thimphu’s parking structures, taxi stands, key pedestrian intersections, tourist / culturally significant locations, and proposed bus terminals.
48. The Team will propose approximately 150 – 250 nodes for 3V analysis along with indexes for the measures noted above for the Thimphu Thromde’s review and consideration. Where data may be absent or otherwise deficient, Thimphu Thromde and the Team will agree to alternative approaches or “workarounds” on a case by case basis. Once this framework is agreed and finalized, the Team will then conduct a 3V analysis for all agreed nodes.
49. The Team will assess the final results of the 3V analysis and will cluster both node locations and Thimphu Thromde / government properties to recommend the broad strategies that will be followed in subsequent TOD, NMT and LCM plans.
50. The outputs of this task will include: (i) a 3V assessment report and presentation detailing findings from the Team’s analysis along with a summary of the methodology used and assumptions made in obtaining results; (ii) an executive summary with simplified High-Medium-Low classifications for the Node Value, Place Value, and Market Potential value of each site considered; (iii) an excel workbook with all calculations and values per node; and (iv) a summary presentation (approximately 45 minutes in length) which the Team will deliver to RGoB’s Task Force.
C. Task 3. Development of TOD, NMT and LCM guidelines - safe multi-functional space approach
51. The Team will use results from prior tasks to propose guidelines for TOD, NMT and LCM interventions including activities aimed at the following: (i) change in the diversity of land uses; (ii) changes in density; (iii) further improvements in connectivity; (iv) walkability enhancements; (v) compactness; (vi) reallocation of road space to alternative uses; (vii) enhancements to disability access; (viii) carbon emission reduction and others.
52. The output of this tasks will be a set of guidelines for the Team and Thimphu Thromde to follow during and after the assignment.
D. Task 4. TOD, NMT and LCM plans
53. The Team will use analysis and data from prior tasks to frame specific TOD, NMT and LCM plans for Thimphu. Activities under this task will include:
▪ Assess existing infrastructure (e.g. water supply, sewerage, parks, waste water, electric infrastructure etc.), site constraints, and sensitive locations in the vicinity of sites (e.g. cultural heritage) at specific node locations to identify potential limitations or requirements for enhancement to enable TOD, NMT and LCM plans. The results if this analysis should inform plans that the Team will propose for each site.
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▪ Identify mechanisms of development, infill, re-development, and re-densification to apply to specific sites in Thimphu based on the 3V analysis performed in prior Tasks. This may include strategies such as: (i) Infill: for dependent nodes in suburban neighbourhoods with single transit lines and low market value. The strategy in such sites will be to promote long term planning, increase activity levels and transit service through increased densities, plans and funding for multimodal (including NMT and LCM) transportation systems, and plans for equitable access for vulnerable or challenged members of the community. (ii) Intensification: for areas that are already built-up with good existing or potential public transport links that can support redevelopment at higher than existing densities. Intensification will be suitable for emerging areas in urban neighbourhoods with interchanges and emerging commercial potential. The strategy for these sites will be to invest in catalytic TOD, NMT and LCM projects to prime and push the market, promote development oriented planning, improve low-carbon development planning and evaluate and address missing multimodal connections and accessibility. (iii) Transformation: where major redevelopment is possible at major hubs. Creating a high level of place value -through job concentration and good urban design with catalytic investments in public spaces - can create high peaks of land and real estate value. The strategy in these sites will be to invest in aggressive TOD, NMT and LCM projects to push the market. This implies significantly higher densities and lower parking ratios, integrated response to climate change for adaptation and mitigation efforts, innovative building types and advancements in urban design and living, employment uses and destination, encouraging affordable or work force housing.
54. The team will consult with Thimphu Thromde on selecting 40 sites to develop concept designs for area TOD, NMT and LCM plans. Subsequently, the Team will hold 3 public consultations to gather community input on the preliminary list of sites agreed with Thimphu Thromde. After updating or amending the proposed list to incorporate community input, the Team will subsequently propose the list of sites to RGoB’s Task Force for final endorsement.
55. The Team will develop TOD, NMT and LCM plans for the 40 sites as agreed with RGoB’s Task Force. Plans should include specific interventions for mixed land uses, densities / FSI, walkability, enhanced disability access, improved low-carbon access etc. and should provide an adequate basis for soliciting proposals from developers and / or commissioning detailed designs. As part of area plans, the Team will propose Development Control Regulations that should apply to areas around specific nodes. These should broadly categorize the TOD, NMT and LCM interventions that would be promoted based on a specific site’s characteristics. Development Control Regulations should be designed to assist Thimphu Thromde and other RGoB entities in managing future development in Thimphu.
56. The output of this task will include: (i) a summary report on TOD, NMT and LCM strategies for all nodes assessed under the Team’s 3V analysis; (ii) TOD, NMT and LCM plans for 40 sites; (iii) proposed Development Control Regulations for TOD, NMT and LCM plans at the aforementioned 40 sites; and (iv) a summary presentation on TOD, NMT and LCM plans and proposed Development Control Regulations (approximately 60 minutes) for delivery to RGoB’s Task Force.
E. Task 5. Commercial plan for TOD, NMT and LCM
57. The Royal Government of Bhutan, like all governments, is fiscally constrained. There is therefore a need to investigate ways of monetizing benefits from improved transport services for use in funding service delivery. The Team will undertake a commercially focused analysis on how TOD, NMT and LCM interventions could be used for this purpose. This will include:
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▪ Analyse privately owned sites with high potential for incremental development to assess the potential revenue streams on offer through current or proposed one-time development fees (e.g. for increased FSI), existing or future taxation regimes, shared development rights, or alternative approaches; ▪ Assess sites owned by Thimphu Thromde or other RGoB entities that could be monetized through upfront sale, joint development, development and rental, etc. ▪ Model the potential cash flows resulting from different options for TOD, NMT and LCM revenue generation based on the above analysis; ▪ Propose revenue models for privately owned developments and Government properties to RGoB’s Task Force for consideration. In addition, the team should take stock of international experience of governing the use of such revenues with a specific aim of providing mechanisms to ensure oversight, probity, public consultation, and productive use of funds. Based on this review, the team will propose a governance structure for managing TOD, NMT and LCM revenues and their reinvestment in Thimphu’s transport network through dedicated funding streams that may aim at supporting the fiscal burdens of service delivery, maintenance, capital investment, and / or financial returns to RGoB if revenues are sufficiently robust; ▪ Based on feedback from RGoB’s Task Force, the team should develop a Commercial Plan for TOD, NMT and LCM value capture that includes: (i) a regime of charges, taxation, or other forms of benefit sharing concerning privately owned developments; and (ii) proposed strategies for maximising the value of Thimphu Thromde and other government-owned sites that offer commercially attractive TOD, NMT and LCM opportunities. This should include site-specific proposals for the Task Force’s consideration.
58. Throughout this task the team should work in close consultation with Thimphu Thromde and the Ministry of Finance.
59. The outputs of this task will include: (i) a financial model for TOD, NMT and LCM revenue streams; (ii) a written TOD, NMT and LCM Commercial Plan (30-50 pages); (iii) a policy brief (approximately 10- 15 pages) on international experiences of governing TOD, NMT and LCM revenue streams and a proposed approach for Thimphu; and (iv) a summary presentation (approximately 30 minutes) for delivery to the RGOB Task Force.
F. Task 6: Green Transport Zones and Travel Demand Management policies
60. The Team will delineate three transport zones on top of the base map within Thimphu and will propose Travel Demand Management (TDM) interventions that apply to each specific zone and to Thimphu as a whole. These may include, among other interventions, mixtures of the following:
▪ Staggering of start / stop of office working hours (including civil servants); (ii) car-pooling schemes; (ii) pricing of private vehicles; pricing regimes applied to private vehicle use; ▪ Management of parking supply and the price of parking at specific locations according to specific times of day; ▪ Hard restrictions or incremental charged on private automobiles at specific times or locations; ▪ Taxi licensing policies and regulations for taxi operations; and ▪ Preferential treatment for public transit and other high-occupancy vehicles as well as members of the population with special needs (e.g. persons with disabilities).
61. The Team’s proposals should include specific considerations for the following: (i) unencumbered access for vehicles required for providing access for disabled / elderly persons; (ii) public service and emergency response vehicles such as police, fire, and solid waste management; (iii) vehicles deploying
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advanced emissions / zero emissions technologies that RGoB may wish to encourage as a matter of policy; (iv) vehicles required to support the normal operation of commercial enterprises such as delivery trucks and maintenance service vehicles. Regimes for managing access may include special provisions assigned to registered vehicles in the categories noted above.
62. The Team’s zoning and TDM plans will include consideration for dividing Thimphu into 3 or more transportation zones such as the following:
a. Zero emissions and high walkability zone: this may include the Central Business District area where intensive regulation and management of GHG emissions and vehicle use would seek to focus mode choice on public transport and non-motorized transport. This zone may seek to maximize pedestrian transit in particular while imposing elevated parking rates to control the volume of trips using private vehicles.
b. Low emission zone: This zone may also facilitate GHG reductions while placing fewer restrictions on vehicle use. The regime for managing private vehicle use in this zone may prioritize advanced emission / zero emissions vehicles. Parking may be more available but also more structured around providing interchanges with the proposed BRT system, bus terminals, or non-motorized transport amenities such that passengers could integrate their trips into / out of Thimphu’s Central Business District with public transport or non-motorized transport modes.
c. Emission management zone: This zone would likely apply to the suburban areas of Thimphu and will implement relatively less intensive emission regulation with a corresponding plan for increasingly rigorous management of emissions criteria in the future as technologies develop and reduce in cost and / or Thimphu’s public transport services expand further.
63. The team will consult with Thimphu Thromde and the Road Safety and Transport Authority on proposed zones and the types of TDM interventions that would apply to each. Subsequently, the Team will hold 3 public consultations to gather community and business owner input. After updating or amending the proposed zones to incorporate this input, the Team will subsequently propose zones to RGoB’s Task Force for final endorsement.
64. After RGoB’s Task Force endorses proposed zones, the Team will develop action plans in the following key areas to support RGoB to subsequently implement proposed zoning for TDM. Actions Plans will include the following:
▪ Parking management: this will include actions to manage specific areas of supply, rates, and restrictions. The parking management action plan should include consideration for the contractual obligations of Thimphu Thromde’s parking structure concessions and any liabilities / or revenue sharing opportunities that may emerge from proposed changes to parking supply and prices. ▪ Vehicle emissions categorization and inspections: this will frame the regime that will apply to private vehicles regarding their classification into defined emissions categories. Each emissions category should include a corresponding regime of regular inspections and / or registration procedures in order to provide positive identification according to plate numbers and Vehicle Identification Numbers. This may include consideration for engine displacement and/or, testing results, and / or manufactured specifications (e.g. Euro, EPA, or other international standard). The team will work in close consultation with the Road Safety and Transport Authority, NEC, Traffic Police, Private test centre to integrate this action plan within the legal and regulatory framework that applies under the Road Safety and Transport Authority Act.
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▪ User-specific circumstances: this action plan should provide a framework for accommodating exceptions or modifications to zone restrictions for individuals with special needs such as persons with disability, low income, or other hardship such as illness. The framework for accommodating user- specific circumstances should include a pragmatic regime for applying exemptions ex-ante through advanced registration and verification (e.g. disabled parking permits), or ex-post though procedures to recoup fines or other charges if an extenuating case can be demonstrated upon appeal. ▪ Enforcement: this action plan will include a proposed system whereby violations can be identified and addressed through warnings, fines, or more serious measures such as towing and impoundment. The enforcement action plan should reflect detailed consultation with the Royal Bhutan Police and should include a proposed program for the human resources required for enforcement along with verification mechanisms to ensure that enforcement is consistently applied, fully transparent, equitable, and reasonable.
65. The Team will include the following in all action plans: (i) specific milestones that can guide RGoB in implementing steps to achieve zoning objectives; (ii) specific legal or regulatory mechanisms required for implementation; (iii) a critical path schedule for achieving specific milestones; and (iv) financial estimates for revenues and costs associated with implementation. Financial estimates are likely to be approximate and the Team should include scenarios to demonstrate the range of plausible outcomes arising from implementation. In recommending legal and regulatory mechanisms, the Team will consult with and take guidance from RGoB’s Task Force and the Bhutan National Legal Institute.
66. The team will present draft Action Plans to RGoB’s Task Force for consideration and feedback. Subsequently, the Team will hold 3 public consultations to gather community and business owner input. After updating or amending Action Plans to incorporate this input, the Team will subsequently finalize Action Plans and present them to RGoB’s Task Force for final endorsement.
67. Outputs of this component will include: (i) transport zones for Thimphu; (ii) Action Plans for the implementation of proposed zones; and (iii) a summary presentation (approximately 60 minutes) for communication to key stakeholders during a final presentation.
VI. TEAM COMPOSITION AND REQUIRED EXPERTISE
68. The execution of this assignment will require a team with wide expertise in the following areas:
▪ Transport planning; ▪ Land surveying and GIS; ▪ Financial and economic analysis; and ▪ Transport policy.
69. The Team proposed to satisfy these requirements may include a joint venture or sub-contracted arrangement between firms to meet all requirements. The Team is encouraged to partner with local technical experts who can support site investigations and / or “ground truthing” of data.
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VII. MILESTONES AND INVOICING
70. The Team will invoice at each task milestone according to the contract fractions listed below:
Invoicing Indicative Task Title (% of contract) timing (Weeks) M Mobilization and contract signing 5% 1 I Task 1: Base Map to support planning 20% 6 II Task 2: Multi-criteria analysis and prioritization using the 3V Framework 20% 8 Task 3: Development of TOD, NMT and LCM guidelines - safe multi- 10 III 5% functional space approach IV Task 4: TOD, NMT and LCM plans 20% 13 V Task 5: Commercial plan for TOD, NMT and LCM 10% 18 VI Task 6: Green Transport Zones and Travel Demand Management policies 20% 24 Total 100%
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ANNEX C TOR FOR LOW-CARBON TRANSPORT INFRASTRUCTURE
VIII. ASSIGNMENT OBJECTIVES
71. The objective of this assignment is to take forward technical preparations that build on an initial feasibility work carried out in 2012 for a Bus Rapid Transit (BRT) corridor along Thimphu’s north-south axis. The tasks included under this assignment are meant to position low-carbon transport project including the BRT and its complementary infrastructure investments for immediate and speedy implementation upon their completion. Specific aims of the assignment include:
1. Undertake technical preparations for a BRT corridor along Thimphu’s north-south axis (Babesa to Dechencholing). This will include service and operations plans, physical and operational design of the BRT system, design of traffic engineering improvements, application of Intelligent Transport System technologies; 2. Evaluate and recommend how the low-carbon transport project can be used a way of fostering sustainable land development all along the Norzin Lam in Thimphu; 3. Develop traffic management and diversion plans that will apply to construction and post-construction periods; 4. Estimate the scale of climate change mitigation potential of low-carbon transport infrastructure in urban public transport delivery; 5. Provide inputs to social and environmental assessments that will be executed under a parallel assignment. 6. Develop an appraisal report that can go forward for consideration by the GCF. This should contain detailed economic, financial, and risk analysis as well as a summary of technical options considered; 7. Establish general bus and specific BRT bus operating standards and procedures and related business practices; 8. Undertake consultations with the public and other key stakeholders to inform preparation activities and the development of a formal public relations and communications plan for implementation; and 9. Develop tender specifications and documentation to support subsequent procurement activities.
IX. SCOPE OF WORK
72. The assignment will be carried out by a company or consortium (hereafter the “Team”) in coordination with the Royal Government of Bhutan’s Task Force, the World Bank, and the Green Technology Center Korea. The scope of services from the Team will include: (i) desk review of past technical work on Thimphu’s urban transport characteristics and traffic patterns; (ii) additional data collection as needed to supplement past work where necessary; (iii) physical site surveys; (iv) engineering design; (v) document preparation to enable further engineering work and/or tendering; (vi) briefings and consultation with RGoB and members of the public; (vii) financial and economic analysis; (ix) GHG emissions analysis; (viii) written contributions to GCF proposal documents. The Team’s work will also entail close collaboration with a parallel assignment to undertake social and environmental due diligence as required to prepare investments according to the World Bank’s Environmental and Social Framework.
A. Task 1: Background and baseline
73. The Team will compile and synthesize all planning work with implications for low-carbon transport project including the BRT and its complementary infrastructure investments (see basic list included below). Where necessary the team will identify needs for additional data collection or analysis along with methodologies for collecting additional information which will form part of a data collection plan for use
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in Task 2. Based on work performed under this task the Team should have reliable information for the following dimensions of Thimphu’s transport system:
Public transport data ▪ Total daily passenger trips; ▪ Passenger boarding and alighting by stop or route segment (counted at stop or on board), by time of day (weekday daily total, am peak period, pm peak period, Saturday peak period); ▪ On-board passenger counts at key intersections by time of day; ▪ O/D survey for routes significantly impacted by BRT; ▪ Taxi and Bus operating and maintenance costs, wage rates; ▪ Approximate value of time for different customer segments; and ▪ Current taxi and bus depots, parking, other operating and maintenance arrangements. Travel times For every segment (intersection to intersection) over the public transport route alignment(s), times (peak, off-peak) time spent:
▪ Moving ▪ Stopped because of pedestrians ▪ Stopped because of traffic ▪ Stopped to pick-up/discharge passengers General Traffic (vehicles, bicycle and pedestrian) ▪ Traffic over critical segments – daily and by time of day (am peak period, pm peak period) – classified by auto/truck/bus/bicycle ▪ Turning movements at critical intersections ▪ Pedestrian volumes along key corridors in central Thimphu
74. The Team’s financial proposal should budget at least US$30,000 for funding additional data collection to make updates or fill gaps in the above. Needs in excess of this amount would be negotiated on a case-by-case basis. The Team’s data collection plan will be subsequently executed under Task 2.
Validation of alternatives considered in 2012 75. The team will use data collected under this activity to review the analysis of alternatives conducted in 2012 to ascertain whether past recommendations remain valid or require updating. The scope of this task will include: (i) stops / station locations; (ii) bus lanes; (iii) preferred technologies for rolling stock (taking into account findings from complementary Program activities).
76. The Team’s analysis should consider both upfront costs and the full economic cost of subsequent maintenance and operations (incl. avoided fuel expenditures, economic cost of emissions, and likely maintenance costs. All analysis should include broad sensitivity testing of key assumptions. The Team will present results of analysis along with any proposals to modify the system specified in 2012 to RGoB stakeholders for an initial round of feedback. After incorporating feedback, the Team will make revisions and present the updated low-carbon transport concept during initial public consultations with stakeholders throughout Thimphu. The team should conduct not less than 2 consultation events at different times of day / days of the week in order to accommodate a broad range of attendance from target participants with different schedules;
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Data collection to valid operating information 77. As part of this task, the Team will adapt GPS-enabled cell phones which will be provided to bus drivers / conductors to track the movement of buses over their respective routes. This should be accompanied by an application to aggregate and disseminate data once collected. The Team will use open- source technology for this purpose and will include the cost of all hardware in the Financial Proposal. All software and hardware used in the execution of this task will be handed over to the City Bus Service upon completion of the Team’s assignment.
78. Outputs of this task will include: (i) databases and working models for input to analytical work; (ii) a data collection plan for any incremental information required (to be executed under Task 2); (iii) a report on analysis of alternatives (10-15 pages) with an updated recommendation for distribution to RGoB’s Task Force and the general public via the Program website;
B. Task 2: Travel Demand Model and projections 79. The Team will develop a travel demand model for projecting out modal shift achievable under the Program. This will include consideration for private transport, taxis, public transport, and non-motorized transport elements of the multi-modal system. The model should reflect consideration for current and projected changes in land use / density and travel demand management measures that can be used in conjunction with infrastructure investments to encourage modal shifts away from private transport.
80. Data and assumptions used in modeling will be drawn from existing studies (e.g., the World Bank’s 1,000 household survey, Thimphu’s structural plan, Thimphu’s transport plan, Road Safety and Transport Authority (RSTA) vehicle registration data). In addition, the Team will execute the data collection plan developed under Task 1 to address any updates or information gaps.
81. The Team will use the travel demand model to test different scenarios such as service delivery alternatives, different travel demand management measures, land use modifications, and pricing regimes. The Team will compile outcomes from this analysis in a technical report and will produce an accompanying policy note (5-7 pages) that can be presented to RGoB’s Task Force and other senior policy makers.
82. Outputs of this task will include: (i) supplemental data sets collected according to the Team’s data collection plan as developed under Task 1; (ii) a final travel demand model; (ii) a written technical report on scenarios and potential targets on model shift; and (iii) a presentation (approximately 30 minutes) and accompanying policy note for delivery to RGoB’s Task Force.
C. Task 3: technical preparations for BRT and complementary infrastructure
83. The Team will reference prior work on Thimphu’s BRT and will subsequently undertake work to further prepare the proposed BRT system and its complementary elements. This will include:
▪ Prepare preliminary designs and cost estimates for different busway options including: (i) a dual lane busway for the entire 16 km BRT corridor; (ii) a single lane dual direction busway for the 16km corridor that would use “block signalling” or other technology solutions to control for directional conflicts; (iii) a mixture of dual and single lane busways for the 16 km corridor based on projected demand for different segments; (iv) a mixture of single and dual and single lane busways and mixed traffic busways for the 16 km corridor based on projected demand, technical feasibility, and cost considerations; ▪ Perform multi-criteria analysis of different busway options and other bus infrastructure to select preferred options in consultation with RGoB’s Task Force. The Team’s implementation schedule should account for approximately 2 months of interaction with RGoB, review, and revision to ensure that all RGoB concerns have been considered and addressed.
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▪ Based on the RGoB Task Force decision from the above, prepare detailed designs for busways and bus infrastructure along the full BRT corridor; ▪ Develop detailed designs for all bus stop concepts along the BRT corridor based on the conceptual stop designs that have been developed for the City Bus Access Project; ▪ Develop detailed designs for all bridge modifications required to implement the busway solution identified for the BRT system. This should include any required modification to the Barbessa flyover structure near central Thimphu. ▪ Develop detailed designs for all earthworks and retaining structures required for lane expansions along the BRT corridor; ▪ Develop detailed designs for all modifications to the existing road infrastructure along the BRT corridor as required to provide for private vehicles, pedestrian access and safety, and managing exclusive rights of way for bus services; ▪ Develop detailed designs for upgrading the current city bus depot. These should include covered facilities for maintenance and improved bus maintenance bays to allow for safety and improved efficiency of maintenance activities; ▪ Develop a proposed service schedule for BRT services based on envisaged demand, the projected bus fleet, and operational / maintenance requirements as needed to provide for system sustainability; ▪ Develop detailed specifications for the signalling system required to manage busway operations (if needed based on the final scope of busways); ▪ Undertake secondary consultations using detailed designs and the proposed schedules for services. This should include not less than 3 events at different times of day in order to accommodate a broad range of attendance from target participants with different schedules; ▪ Make final revisions to detailed designs and the proposed construction schedule to reflect results of consultations, final feedback from RGoB, and findings the Environmental Impact Assessment and Social Impact Assessment (pausing activities if needed to do so); and ▪ Develop tender documentation and specifications for works that will form the basis for contract terms. The Team will ensure that provisions from environmental and social instruments are accurately included in tender documents and contract specifications (e.g. the Environment Management Plan and Resettlement Action Plan that follow from the Environmental Impact Assessment and Social Impact Assessment).
84. The outputs of this work will include: (i) a written report with updated and / or validated alternatives analysis of infrastructure solutions and vehicle options; (ii) design packages for all infrastructure investments identified above; (iii) detailed bills of quantity and cost estimates for all works; (iv) recommended technical specifications for all work; (v) the critical path schedule for works; and (vi) a summary presentation to brief policy makers on the scope of works and envisaged implementation plan for Thimphu’s BRT.
D. Task 4: Preparations for central bus terminal and an upgraded city bus depot
85. The Team will undertake technical preparations for: (i) upgrading or developing a new central city bus terminal; and (ii) upgrading or developing a new city bus depot to support critical maintenance functions. This scope of work will include:
▪ Identify options for upgrading the existing central city bus terminal and city bus depot or developing these at new sites that the Team identifies. In close consultation with RGoB, the Team will structure and perform a multi-criteria analysis of options for new or upgraded terminal and depot facilities based on concepts developed. This should include financial, environmental, social, and technical dimensions
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of consideration for different options. The Team will present findings to RGoB’s Task Force for an initial round of feedback and guidance. After incorporating feedback, the Team will modify concepts accordingly and will present them during 3 initial public consultations with business, residents, and other stakeholders. ▪ Select preferred options for the city bus terminals and the city bus depot based on feedback from public consultations, results of multi-criteria analysis, and final guidance from RGoB’s Task Force. ▪ Develop preliminary designs to support request for expressions of interest for construction works and environmental and social due diligence that will be undertaken in a parallel Environmental Impact Assessment and Social Impact Assessment activities. The Team’s Preliminary Designs should incorporate comments received through consultations. The team will pause activities under this task until the Environmental Assessment and Social Assessment activities validate the Team’s preliminary design and / or identify the changes that should be included under detailed design activities; ▪ Develop detailed designs for: the new or upgraded central city bus terminal in downtown Thimphu; and (ii) a new or upgraded city bus depot. ▪ Undertake secondary consultations with the general public in and around Thimphu. This should include not less than 3 events at different times of day in order to accommodate a broad range of attendance from target participants with different schedules; ▪ Make final revisions to detailed designs and the proposed construction schedule to reflect results of consultations, final feedback from RGoB’s Task Force, and findings the Environmental Impact Assessment and Social Impact Assessment (pausing activities if needed to do so); ▪ Develop detailed construction schedules for all works described in this task that show phasing and a critical path for implementation; and ▪ Develop tender documentation and specifications for works that will form the basis for contract terms. The Team will ensure that provisions from environmental and social instruments are accurately included in tender documents and contract specifications (e.g. the Environment Management Plan and Resettlement Action Plan that follow from the Environmental Impact Assessment and Social Impact Assessment).
86. The outputs of this work will include: (i) design packages for the central city bus terminal and the city bus depot as noted above; (ii) detailed bills of quantity and cost estimates for all works; (iii) recommended technical specifications for all work; (iv) the critical path schedule for works; and (v) a summary presentation to brief policy makers on the scope of works and envisaged implementation plan developing terminal and depot infrastructure.
E. Task 5: GHG emission forecasting
87. The GHG reduction potential of Thimphu’s proposed BRT and complementary investments in infrastructure and service delivery are central to the thesis for GCF investment. The Team will accordingly forecast GHG emissions for different operating scenarios as well as a “do nothing” scenario. This will include both “top down” and “bottom up analysis”. Top down analysis will consider current and projected fuel consumption as well as emissions factors for specific fuel types. Bottom-up analysis will deploy an Activity modal Structure Intensity Fuel (ASIF) analysis approach that considers transport demand, modal split, vehicle performance characteristics, and fuel characteristics that are appropriate for Bhutan. All analysis should segment GHG emissions by type and source. The Team’s analysis should also consider indirect “well-to-tank” emissions. The Team will compile findings from this task into a technical report (20-30 pages) that describes methodologies, assumptions, and results. In addition, the Team will develop a summary presentation of GHG analysis and results (approximately 30 minutes in length) that will be delivered to RGoB’s Task Force.
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88. Outputs from this task will include: (i) models for GHG analysis; (ii) the technical report described above; and (iii) a summary presentation to RGoB’s Task Force.
F. Task 6: Traffic management and road safety plan for construction periods 89. The proposed BRT and its complementary investments in non-motorized transport infrastructure, bus terminals, and the City Bus Depot will likely involve construction of works along busy corridors. Resulting traffic diversions may cause significant disruption and / or compromise road safety. It is therefore necessary to develop plans for managing disruptions and ensuring that road safety risks are appropriately mitigated. The Team will accordingly execute the following activities:
▪ Assess likely traffic impacts of proposed works along with appropriate mitigations to manage those impacts; ▪ Identify the likely road safety impacts / risks of works at specific sites where works are envisaged to impact on the flow of vehicles and pedestrians; ▪ In close consultation with Thimphu Thromde, develop a preliminary traffic management and road safety plan for affected sites that can be included in works contracts as a means for avoiding or mitigating impacts; ▪ Undertake 2 public consultation events on the proposed traffic management and road safety plan. These should take place at different times of day / days of the week in order to accommodate a broad range of attendance from target participants with different schedules; ▪ Update and finalize the traffic management and road safety plan based on feedback received; and ▪ Develop specifications relating to specific project sites for inclusion in subsequent works contracts.
90. Outputs of this task will include: (i) a final traffic management and road safety plan; and (ii) contract specifications for sites where the traffic management and road safety plan will be executed.
G. Task 7: Operations, maintenance, and management plan
91. The team will review the service delivery and operating plan for the BRT and other city bus services as projected in 2012 and will revise these according to updated demand projections and final scope of the system. The Teams work will include:
▪ Develop a service schedule for the BRT system and adjoining bus services that accounts for peak hour demand, schedule recovery, fleet maintenance needs, and flexibility to accommodate demand growth; ▪ Develop objective operating performance targets and performance measures to complement the proposed Public Service Agreement; ▪ Develop service quality metrics to periodically capture subjective customer perceptions of operations along with a reporting template that the City Bus Service can use to disclose results; ▪ Develop an organizational structure for operations and management of BRT system elements and adjoining city bus services; ▪ Propose a staffing plan for operating BRT services and adjoining bus services; ▪ Develop a methodology for condition assessment and asset management of BRT system elements. This should include methods for planning maintenance, renewals, and enhancements; ▪ Propose a methodology for enforcement of BRT exclusive right of way (where applicable); ▪ Develop training curriculum (power points for a two day curriculum) on BRT/ITS operations, maintenance, renewals, and enhancements of assets;
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▪ Propose a program of technical training on BRT/ITS operations to capacitate Bhutan Post / City Bus Service staff; and ▪ Present a draft Operations and Management Plan to Bhutan Post / City Bus Service for review and comments. After receiving comments on this draft plan, the Team will present it to RGoB’s full task force for final comments / endorsement.
92. Outputs of this task will include: (i) an operations and management plan for the proposed BRT including the elements described above; (ii) training curriculum and training program as noted above; and (iii) a summary presentation for RGoB’s Task Force (approximately 45 minutes) on the final operations and management plan.
H. Task 8: Operating and maintenance budget 93. The Team will project out an operating and maintenance budget for the BRT and adjoining bus services using the outputs of prior tasks. This will include a 15 year projection with additional details applicable during an initial 5 year budget planning period. The Team’s activities will include:
▪ Propose options for a fares adjustment formula in close consultation with the Road Safety and Transport Authority. Options should subsequently be presented to the RGoB’s Task Force for identification of a preferred model. The Team will subsequently use this through the duration of this task; ▪ Project out all current revenues and costs for operating the BRT service and adjoining bus services; ▪ Project out capital investments required to renew, and enhance services over a 15 year time horizon; ▪ Project out financial statements for the City Bus Service reflecting an accruals-based accounting approach; ▪ Estimate annual operating and capital subsidies that the BRT and adjoining bus services are likely to require; ▪ Develop a “base case” scenario along with test scenarios to assess the potential impact of changes in key assumptions such as demand, fares, labour costs, fuel prices, macroeconomic variables, etc.; and ▪ Develop a summary note (10-15 pages) on scenarios and findings from the above analysis for presentation to RGoB’s Task Force.
94. Outputs of this task will include: (i) a financial model containing the above analysis and projected financial statements; (ii) the summary note referred to above; and (iii) a final presentation to RGoB’s Task Force (approximately 20 minutes in length).
X. TEAM COMPOSITION AND REQUIRED EXPERTISE
95. The team should include the following expertise:
▪ Transport planning and traffic modelling; ▪ Land surveying; ▪ Architectural design (with a particular focus on local architectural themes and motifs); ▪ Road and bridge engineering (including geotechnical, structural expertise); ▪ Bus operations (including BRT, Bus Information System and signalling systems); ▪ Non-motorized transport infrastructure; ▪ Traffic engineering and intersection design; ▪ Financial assessment and modelling; and
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▪ Road safety / pedestrian safety. XI. MILESTONES AND INVOICING
96. The Team will invoice at each task milestone according to the contract fractions listed below:
Indicative Invoicing Task Title timing (% of contract) (weeks) M Mobilization and contract signing 5% 1 I Task 1: Background and baseline 5% 4 II Task 2: Travel Demand Model and projections 15% 7 III Task 3: Technical preparations for BRT and complementary infra works 40% 19 IV Task 4: Preparations for city bus terminal and an upgraded city bus depot 15% 22 V Task 5: GHG emission forecasting 5% 24 VI Task 6: Traffic management and road safety plan for construction periods 5% 28 VII Task 7: Operations, maintenance, and management plan 5% 32 VIII Task 8: Operating and maintenance budget 5% 36 Total 100%
97. The timing listed above is indicative and subject to the Team’s proposed work plan as submitted during tendering for the assignment. The timing of tasks will also be subject to the need for designs to incorporate feedback from the Environmental and Social Assessment and Gender Action Plan that will be conducted in parallel under a separate contract. Including this feedback into final detailed designs is important to ensure that all activities comply with the World Bank’s Environmental and Social Framework.
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ANNEX D TOR FOR PREPARING PEDESTRIAN AND NON-MOTORIZED TRANSPORT SERVICES
98. As part of the Bhutan Green Transport Program (the “Program), the Royal Government of Bhutan (RGoB) is seeking to pedestrianize Thimphu’s main 1.3 km boulevard known as “Norzin Lam.” The aim of this initiative is to give priority for pedestrian access along Thimphu’s main business district in line with the Program’s overall goals of reducing dependency on private conventional vehicles and fossil fuel. The initial concept for Norzin Lam’s pedestrianization envisaged exclusively pedestrian and non-motorized traffic during peak hours with vehicle traffic to support businesses allowed only during defined morning or late evening hours (with exceptions made for emergency vehicles, disability access, public service vehicles, and possibly buses).
I. OBJECTIVES
99. The objectives of this assignment are to:
▪ Prepare infrastructure solutions that will improve pedestrian, non-motorized and disability access along Norzin Lam; ▪ Identify and plan the traffic interventions needed to provide vehicular access to residences and businesses along Norzin Lam via alternative streets and alleyways; ▪ Identify and plan cycle ways running the length of Thimphu’s primary transport corridor; ▪ Identify and prepare sustainable and cost effective lighting solutions for Norzin Lam that can provide for pedestrian safety and security after hours; ▪ Plan sites in the immediate vicinity of Norzin Lam that can provide for pedestrian / general community amenity; ▪ Plan new footpath development along all routes in Thimphu’s central area as defined in the Thimphu Structural Plan; ▪ Propose a regime for managing access to Norzin Lam for different modes during both peak hour periods and during early morning / late evening periods; ▪ Ensure that feedback and needs of key stakeholders and members of the general public are included in the design and development process for all proposed works along Norzin Lam; and ▪ Prepare the Norzin Lam pedestrianization works for tendering and subsequent execution. II. SCOPE OF WORK
100. The scope of work for this assignment includes: (i) site assessment; (ii) traffic planning; (iii) engineering design; (iv) public outreach and consultation; (v) architectural design and site planning; (vi) construction and project planning; and (vii) site investigation and survey.
III. TASK DESCRIPTION A. Task 1: Preliminary designs and consultations for Pedestrianization
101. The team will undertake initial technical preparations for pedestrianizing Norzin Lam and will execute the following activities:
▪ Site survey and utilities investigation to identify the current location of existing utilities and options for their relocation (if required). This should include inspection of any available design drawings from service providers. The Team’s activities should be documented within an open-source GIS map for sharing with other teams / RGoB institutions;
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▪ Preparation of a conceptual design for pedestrianization works that can be shown to RGoB’s Task Force for an initial round of feedback. After incorporating Task Force feedback, the Team will modify concept designs accordingly and use updated versions during initial public consultations with business, residents, and other stakeholders along and near the proposed pedestrianization corridor. This should include not less than 3 consultation events at different times of day in order to accommodate a broad range of attendance from target participants with different schedules. At least one consultation should focus on taxi drivers and local businesses that operate along the current alignment; ▪ Development of a preliminary design to support request for expressions of interests for construction works and social / environmental due diligence to be included in parallel Environmental Impact Assessment and Social Impact Assessment activities. The Team’s Preliminary Design should incorporate comments received from consultations and RGoB’s Taskforce. The team will pause activities under this task until the Environmental Assessment and Social Assessment activities validate the Team’s preliminary design and / or identify the changes that should be included under detailed design activities;
102. The outputs of this work will include: (i) a GIS map documenting the Team’s site survey and utilities investigation work; (ii) concept design packages for civil works; (iii) a concept stage briefing presentation for RGoB’s Task Force (approximately 1 hour in length); (iv) documented completion of consultation events including compiled comments and responses.
B. Task 2: Advanced designs for Pedestrianization
103. Using outputs from Task 1, the Team will revise concept designs and advance them to detailed designs. This will include the following activities:
▪ Detailed design of the main pedestrian corridor along Norzin Lam, including the main thoroughfare and tributary access to adjacent pedestrian infrastructure along connecting footpaths and other infrastructure. The Team’s work should include considerations for enhancing accessibility for disabled persons (e.g. wheel chair users, persons with sight impairments, persons with impaired ambulatory capabilities). Wherever practicable, this should include a limited use of stairs, high curbs, and other physical barriers to access; ▪ Detailed design of intersections at the north and South of Norzin Lam and all intersecting streets along the route as required to provide for traffic diversion during hours of pedestrian only access; ▪ Detailed design of lighting solutions along Norzin Lam and associated electricity network modifications to facilitate safe and enjoyable use of public spaces after daylight hours. Designs for lighting fixtures should consider multiple uses (e.g. anchors for banners / flags during festivals, or hanging vegetation). Proposed solutions should consider the long term operations and maintenance cost of lighting. This should include efforts to prevent a “lock-in” to specific proprietary lighting technologies. For example, LED lighting fixtures should accommodate units from different manufacturers as piloted by the city of Vienna, Austria and others as means for reducing downstream costs; ▪ Detailed designs of modifications to water supply and sewerage infrastructure along the corridor to be affected by works in order to achieve the following: (i) elimination of all open sewers / drains to improve sanitation and eliminate odour along Norzin Lam; (ii) improved ability to maintain water supply and sewerage infrastructure along Norzin Lam; and (iii) increased reliance during extreme precipitation events (e.g. annual monsoons); ▪ Development of a landscape concept plan to preserve and enhance the landscape quality of areas that may be affected by proposed works. These areas include road corridors, linked pathways, car parking, and boundary zones. The landscape concept plan should include: (i) preliminary design of removable landscaping solutions to both control traffic access and add to aesthetics along Norzin Lam; and (ii) preliminary design of fixed landscaping to beautify Norzin Lam and the immediate vicinity of the future
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pedestrian corridor. This will include a preliminary design for enhancements to the Clock Tower Square and the commercial area in its immediate vicinity. The landscape concept plan should also identify significant existing vegetation, and opportunities for enhancement; ▪ Undertake secondary consultations with RGoB’s Task Force for an additional round of feedback. After incorporating Task Force feedback, the Team will modify detailed designs accordingly and use updated versions with business, residents, and other stakeholders along and near the proposed pedestrianization corridor using detailed designs. This should include not less than 3 events at different times of day / days of the week in order to accommodate a broad range of attendance from target participants with different schedules;
104. The outputs of this work will include: (i) detailed design packages for civil works; (ii) a landscape concept plan as described above; (iii) a detailed design stage briefing presentation for RGoB’s Task Force (approximately 1 hour in length); (iv) documented completion of consultation events including compiled comments and responses.
C. Task 3: Preparation of cycle lanes and other non-motorized transport infrastructure
105. The Team will prepare investments in non-motorized transport network, including enhancements to cycle ways, footpaths, and level crossings in in Thimphu and other urban centre. The Team’s activities will include:
▪ Identification of potential alignments and preparation of conceptual design options for: (i) a North- South cycle way running the length of Thimphu’s primary transport corridor (approximately 16-18 km); and (ii) new footpaths and proposals for enhancements to existing footpaths within Thimphu Thromde’s geographical boundaries; (iii) new level crossings and enhancements to existing level crossings within Thimphu Thromde’s geographical boundaries; (iv) enhancements to pedestrian safety related works throughout Thimphu Thromde’s geographical boundaries; (v) cycle ways, footpaths, pedestrian safety related infrastructure design in other urban centre. The Team will present conceptual designs to RGoB’s Task Force for an initial round of feedback. After incorporating feedback, the Team will modify concepts accordingly and use these during 3 initial public consultations with stakeholders throughout Thimphu. This should include not less than 3 consultation events at different times of day in order to accommodate a broad range of attendance from target participants with different schedules; ▪ Analysis of different alternatives based on the feedback from public consultations, preliminary costs analysis and consideration for findings from Environmental and Social Impact Assessments that will be conducted in parallel; ▪ Development of a preliminary design for the North-South cycle way to support request for expressions of interests for construction works and social and environmental due diligence under parallel Environmental Impact Assessment and Social Impact Assessment activities. The Team’s Preliminary Design should incorporate findings from alternatives analysis, comments received from consultations and RGoB’s Taskforce based on conceptual design alternatives; ▪ Detailed design for footpath enhancements and new footpath development along all routes in Thimphu’s central area as defined in the Thimphu Structural Plan. This should include modifications as required to improve accessibility for persons with disability; ▪ Detailed design of road safety enhancements to reduce pedestrian vs. vehicle conflicts in Thimphu’s central area as defined in the Thimphu Structural Plan; ▪ Project a construction schedule that shows a proposed phasing of works and a critical path for implementation;
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▪ Undertake secondary consultations with the general public in and around Thimphu. This should include not less than 3 events at different times of day / days of the week in order to accommodate a broad range of attendance from target participants with different schedules; ▪ Make final revisions to detailed designs and the proposed construction schedule to reflect results of consultations, final feedback from RGoB, and findings the Environmental Impact Assessment and Social Impact Assessment (pausing activities if needed to do so); and ▪ Develop tender documentation and specifications for works that will form the basis for contract terms. The Team will ensure that provisions from environmental and social instruments are accurately included in tender documents and contract specifications (e.g. the Environmental and Social Management Plan and Resettlement Action Plan).
106. The outputs of this work will include: (i) design packages for all infrastructure investments identified above; (ii) preliminary bills of quantity and cost estimates for all works; and (iii) tender documents and technical specifications for all work.
D. Task 4: Preparations for execution ▪ Project a construction schedule that shows a proposed phasing of works and a critical path for implementation; ▪ Make final revisions to detailed designs, the landscape concept plan, and the proposed construction schedule to reflect results of consultations, final feedback from RGoB, and findings the Environmental Impact Assessment and Social Impact Assessment (pausing activities if needed to do so); and ▪ Develop tender documentation and specifications for works that will form the basis for contract terms. The Team will ensure that provisions from environmental and social instruments are accurately included in tender documents and contract specifications (e.g. the Environment Management Plan and Resettlement Action Plan that follow from the Environmental Impact Assessment and Social Impact Assessment). 14. The outputs of this work will include: (i) final design packages for all infrastructure investments identified above; (ii) the landscape concept plan as described above; (iii) detailed bills of quantity and cost estimates for all works; (iv) tender documents and technical specifications for all work; (v) the critical path schedule for works; and (vi) a summary presentation (approximately 45 minutes long) to brief policy makers and the public on the scope of works and envisaged implementation plan.
IV. MILESTONES AND INVOICING
107. The Team will invoice at each task milestone according to the contract fractions listed below:
Invoicing Indicative Task Title (% of contract) timing (weeks) M Mobilization and contract signing 5% 1 I Task 1: Preliminary designs and consultations for Pedestrianization 25% 7 II Task 2: Advanced designs for Pedestrianization 30% 13 III Task 3: Preparations for non-motorized transport infrastructure 25% 16 IV Task 4: Preparations for execution 15% 19 Total 100%
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ANNEX E TOR FOR LOW OR ZERO-EMISSION PUBLIC TRASNPORT MOBILITY
108. Bhutan faces several transport challenges that come with economic development. Economic growth and rapid urbanization steadily increase demand for urban transport and imported fuels, further worsening the already large and growing trade and fuel deficit as well as raising concern over climate change. The Royal Government of Bhutan (RGoB) has launched an ambitious initiative to promote the use of Electric Vehicles (EVs) to address both the environmental and fossil fuel dependency issues. Introducing EVs in Bhutan is a policy agenda that calls for an innovative and balanced approach achieve RGoB’s overall objective while also using sound technical planning in order to manage the complexities of deploying new and emerging technologies in the context of Bhutan where supply chains, technical capabilities, and infrastructure networks are still developing.
I. OBJECTIVES
109. The objectives of this assignment are to:
▪ Undertake a detailed study of the existing and potential supply chain for electric public transport vehicles and parts in Bhutan to inform alternatives analysis on vehicle options; ▪ Identify, assess alternatives, and prepare specifications for zero emissions public transport vehicle options that can serve public transport users in Thimphu; ▪ Identify a potential charging strategy or overhead catenary strategy for electric buses along the primary bus lanes in Thimphu; ▪ Examine the technological, financial, economic, environmental, and social aspects of proposed solutions for zero emissions transport; ▪ Prepare infrastructure solutions that will improve electric mobility access along the length of Thimphu’s primary transport corridor; ▪ Ensure that feedback and needs of key stakeholders and members of the general public are included in the design and development process for all proposed works; and ▪ Prepare the electric and zero-emission transport mobility works for tendering and subsequent execution.
II. SCOPE OF WORK
110. The scope of work for this assignment includes: (i) desk research and alternatives analysis; (ii) site assessment; (iii) engineering design; (iv) document preparation to enable further engineering work and/or tendering; (v) public outreach and consultation; (vi) architectural design and site planning; (vii) construction and project planning; and (viii) financial and economic analysis.
III. TASK DESCRIPTION A. Task 1: Supply chain analysis of vehicle options
111. Bhutan’s unique geographical context results in atypical supply chains for transport vehicles and components. In the past, this has required the City Bus Service to fly-in spare parts for buses due to unavailability of compatible parts in the South Asia Region. Such issues will need careful consideration alongside any options analysis of zero and low emissions vehicle options. The Team will accordingly investigate regional supply chains and explore key barriers for the uptake of for low and zero emissions and vehicles in Bhutan. The Team’s activities will include:
▪ Undertake a detailed study of the existing supply chain for low and zero emissions vehicles including: (i) initial vehicles; (ii) spare parts; (iii) maintenance services; and (iv) required fuel (if applicable). This
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should include analysis of domestic industries in Bhutan as well as broader producer / supplier networks located in the South Asia Region; and ▪ Conduct industry interviews to ascertain the relative availability of key inputs to low or zero emissions bus operations and what impacts those may have on the range of credible options for rolling stock and their total cost of ownership / use in Bhutan’s context.
112. The outputs of this work will include: (i) a supply chain and industry interview report; and (ii) a summary presentation for RGoB’s Task Force.
B. Task 2: Technical preparations for zero or low emissions buses
113. Based on results from Task 1, the team will undertake technical preparations for applying zero or low emissions buses to Thimphu’s public transport fleet and will execute the following activities:
▪ Assessment of the applicability of zero or low emissions vehicles (electric, hybrid, plug-in hybrid, hydrogen) in Thimphu’s public transport bus fleet and its operational plans; ▪ Financial and economic analysis of different zero or low emissions public transport options, including both total lifecycle costs as well as the resulting cost impact on operating schedules / fleet plans that are needed to accommodate differences in vehicle technologies; ▪ Forecasting GHG emissions for applying different zero or low emissions options as well as a “do nothing” scenario;
114. The outputs of this work will include: (i) a report with prioritized recommendations for deploying zero or low emissions buses in Thimphu’s fleet; (ii) a briefing presentation for RGoB’s Task Force (approximately 1 hour in length).
C. Task 3: Technical preparations for charging / power strategy
115. The team will undertake technical preparations for an electric mobility charging / power supply solution that will traverse the length of Thimphu’s primary north-south transport corridor. Activities will include:
▪ Conduct a baseline analysis in Thimphu’s power infrastructure regarding: (i) grid capacity and configuration relative to transport routes; (ii) current charging services and standards used in Thimphu; (iii) future detailed technical requirements for enabling charging services to be developed along Thimphu’s main north-south axis; ▪ Conduct visual surveys and utilities investigation using available data to identify the current and potential future location of charging facilities for bus depot overnight charging and in-service “opportunity” charging facilities along or near key public transport routes (or substations for overhead catenary power supply). The Team’s activities should be documented within an open-source GIS map for sharing with other teams / RGoB institutions; ▪ Conduct an alternatives analysis (technical, financial / economic, and environmental) for different charging or power supply strategies for public transport along Thimphu’s main north-south axis. The Team’s analysis should consider upfront and lifecycle costs of infrastructure and vehicle fleets as well as operating costs and environmental impacts. At a minimum, alternatives analysis should consider BEV changing solutions, inductive charging, and overhead catenary systems for public transport vehicles. This analysis should present advantages and disadvantages for RGoB’s consideration in choosing a preferred strategy; ▪ Prepare a preliminary budget, program of works, and overall schedule for the development of a preferred charging or power supply strategy to serve Thimphu’s main north-south axis. The team will present this to RGoB’s Task Force for feedback and endorsement. After incorporating Task Force
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feedback, the Team will modify proposed plans accordingly and use updated versions during initial public consultations with business, residents, and other stakeholders along the length of Thimphu’s primary north-south transport corridor. This should include not less than 3 consultation events at different times of day in order to accommodate a broad range of attendance from target participants with different schedules. At least one consultation should focus on bus drivers and local businesses that operate along the current alignment; and ▪ Develop preliminary engineering designs and specifications for works to develop a preferred charging or power supply solution for Thimphu’s main north-south transport corridor. This should include sufficient detail to enable a subsequent Environmental and Social Impact Assessment.
116. The outputs of this work will include: (i) a GIS map documenting the Team’s site survey and utilities investigation work; (ii) an alternatives analysis report; (iii) preliminary budget, program of works, and overall schedule for implementing a preferred charging or power supply strategy; and (iv) preliminary engineering designs and specifications for works to develop a preferred charging or power supply solution for Thimphu’s main north-south transport corridor.
IV. MILESTONES AND INVOICING
117. The Team will invoice at each task milestone according to the contract fractions listed below:
Invoicing Indicative Task Title (% of contract) timing (weeks) M Mobilization and contract signing 5% 1 I Task 1: Supply chain analysis of vehicle options 25% 7 II Task 2: Technical preparations for zero or low emissions buses 30% 13 III Task 3: Technical preparations for charging / power strategy 40% 25 Total 100%
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ANNEX F TOR FOR ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT, ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN, AND RESETTLMENT ACTION PLAN
A. Objectives ▪ Analyze and provide inputs to other technical teams regarding Program works; ▪ Develop Environmental Management Plan, Resettlement Action Plan, and other social and environmental instruments to reduce, mitigate, and manage adverse environmental impacts associated with the Program’s design and implementation; ▪ Ensure the Program’s compliance with World Bank policies relating to category ‘A’ interventions; ▪ Ensure that public consultation and feedback are fully captured, considered, and deployed in the Program’s design and implementation; ▪ Ensure that the Program’s envisaged environmental impacts are transparently and widely disclosed to community members, other key stakeholders, and the general public; ▪ Conduct extensive consultations with various program teams and other relevant stakeholders to obtain information and inform the different ongoing Program studies; and ▪ Provide design and operation measures for Program works to minimize the risk of social and environmental impacts. B. Scope of work
118. The scope of work is for a firm / consortium and will include assessment of all relevant types of environmental and social adverse impacts on physical and/or human environments. This includes, but is not limited to:
▪ Relocation of population associated with the settlement process; ▪ Community health, security and safety; ▪ Effects on biodiversity including natural habitats; ▪ Change in land use and land values; ▪ Soils and terrain; ▪ Water sources including wetlands, if any; ▪ Vegetation; ▪ Flora and fauna; ▪ Physical cultural resources and heritage; ▪ Population characteristics; ▪ Community and institutional structures; ▪ Political and social resources; ▪ Socio-economic resources including livelihood of people; ▪ Vulnerable people particularity aged, women and children; and ▪ Indigenous people, if applicable.
119. The interests of local communities require protection as they may suffer from property or community severance, denial of access and other adverse environmental fallouts as a result of the developing various
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project related components. Community consolation shall therefore be an essential part of the consultancy service. The ESIA should be carried out in line with the World Bank’s Environmental and Social Framework. In addition, the assessment should meet the requirements of the Constitution of Bhutan 2008 (Article 5 – on Environment), Forest and Nature Conservation Act (1995), Environmental Impact Assessment Act (2000), Biodiversity Act (2003), National Environment Protection Act of 2007 (NEPA), Bhutan National Environmental Strategy (2008), as amended from time to time / RGoB’s other relevant acts, guidelines, as applicable.
C. Task 1: Baseline data collection and initial research
120. The Team will reference prior analytical work / studies and will liaise closely with other teams who are executing technical assignments relating to the preparation of Program works and other interventions to ascertain the broad scope of Program activities. Based on this information, the Team’s will make estimates for plausible boundaries for impact assessment and baseline data collection. The Team’s activities under this Task will include the following:
Social baseline 121. To support with identifying potential social impacts and the nature of affected parties, the team will carry out a census survey of all those likely to be affected (including employees of establishments) based on concept designs. This will categorize Project Affected Persons (PAPs) into different categories according to type of impact and, if relevant, type of structure affected (residence, business, titled, non- titled, etc.). The indicative list of information to be gathered will include but is not limited to:
▪ Social status of the affected families/persons including caste/tribe/gender; ▪ Economic status of the affected families/persons including source of livelihood, monthly incomes; number of “bread earners” in family, types of incomes, land ownership, household assets, indebtedness, etc.; ▪ For residential families: nature and quantity of likely loss-homestead area, residential structure, types of resettlement and relocation assistance preferred, etc.; ▪ For commercial units: nature of land and structure affected, title, business type, legal status of business, monthly incomes and turnovers; number of employees, cliental, etc.; ▪ List of landless wage laborers, employees working in formal or informal sector who may be adversely affected due to the project with data on nature of occupation, education and skill level, social category, age, and income; ▪ Common properties affected (cultural properties, schools, playgrounds, community centers, dispensaries, etc.); ▪ List of vulnerable persons/families: (poor, SC/ST, women headed, aged/infirm, physically or mentally challenged) with socio-economic profile; ▪ Inventory of all affected common amenities, facilities and religious structures; ▪ Any other information considered important in the local context such as : travel time to work place; access to basic services; health status; participation in development schemes of the government; level of mainstream linkage;
122. All the data analysis from the above will include gender disaggregated analysis, wherever relevant. The Team will augment and cross check survey data with data from the 2012 Bhutan Living Standards Survey (BLSS) and data from the World Bank’s household survey on transport behaviors. The Team will be responsible for clearing all survey methodology and instruments with the National Statistics Board of Bhutan in accordance with national regulations.
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Environment baseline 123. The Team will also assemble, evaluate and present baseline data on the relevant environmental characteristics of the Program area. This will include information in the following areas:
▪ Physical environment: geology; topography; soils; water resources; ▪ Natural drainage (surface drainage and flood risk); ▪ Climate and air quality, water and noise level pollution; ▪ Biological environment: flora; fauna; rare or endangered species; sensitive habitats, including parks or preserves, significant natural sites, etc.; species of commercial importance; and species with potential to become nuisances, vectors or dangerous; ▪ Analysis of interactions likely to occur with all activities in the vicinity including associated facilities and cumulative impacts on the environment; and ▪ Analysis of land values in areas likely to be affected by the project.
124. The Team will document findings in an electronic library and a GIS file that can be shared with other teams via the Program Management Consultancy. The Team’s GIS work should take place in close consultation with the team working on Thimphu’s Low Emissions Master Plan – particularly for the sake of documenting land that may require acquisition. For physical works, the Team will make site visits to ascertain conditions and site access. Visits will serve to document baseline conditions using photographs and/or videography.
125. The outputs of this task will include: (i) a baseline report on social and environmental conditions ex-ante; (ii) data and analysis from the census survey on Project Affected People; (iii) an electronic library and GIS map capturing baseline information and identifying sites of particular sensitivity.
D. Task 2: Define and assess the likely impacts of the program based on concept designs
126. The Team will review concept designs and plans as other relevant documents for the Program’s civil works as adjoining teams develop them. The team will subsequently refine the likely boundaries of program impact (social, spatial, and temporal). The team will subsequently estimate and analyze potential impacts including direct, indirect and cumulative impacts, and their relative likelihood and significance. The team’s work will consider at least the following:
Social ▪ Potential land acquisition and resettlement: The team will update the baseline assessment with additional precision based on concept designs to develop a view for the quantity and nature of land acquisition and resettlement; ▪ Impacts on vulnerable communities: The team will compare baseline data to works and other initiatives to develop a view on likely impacts that the Program may have on vulnerable communities including disabled persons, low income households, and others; ▪ Gender related impacts: these may include improved or reduced accessibility for the women directly related to project interventions as well as indirect impacts relating from changes in daily routines and / or changes in social status; ▪ Employment and job related impacts: The team should consider how changes in Thimphu’s transportation services under the Program will affect employment in particular industries or geographical locations (e.g. shops, taxi drivers, private drivers, etc).
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Environmental ▪ Impacts on topography: Depending upon the type of Program works, construction activities onsite could cause impacts to the local topography that require analysis, for example: (i) erosion and sedimentation; (ii) temporary disruption of natural drainage patterns; (iii) accumulation of excess excavated earth in the area of construction and operation; (iv) excess earth and debris blockage and change in drainage pattern; (v) changes to hydrological regime, increased flooding, siltation hampering stream flows, etc.; ▪ Impacts on climate and localized emissions: The team will cross check and comment on the quality of GHG emissions analysis of bus services that will be conducted under a complementary assignment. The team will also build on this analysis with an assessment of the Program’s impacts on particulate emissions and other localized pollutants, including: (i) increased dust levels due to earth work excavation and construction activities; (ii) Increased odor – particularly where works affect sewerage infrastructure; (iii) emissions / fumes of machinery, plant and equipment or associated fuel; ▪ Impacts on surface water: Program activities during construction or operations may be expected to interfere with surface water characteristics of Thimphu city depending on their location and nature of operations. Potential impacts on surface water bodies that require study could include: (i) reduced flow to the downstream users; (ii) surface water pollution; (iii) degradation of river banks due to excavation and construction activities; (iv) overflow of sewage causing pollution in channels and water bodies; ▪ Impacts on ground water: Potential impacts on groundwater that need to be assessed may include: (i) groundwater pollution due to changes in drainage patterns or works that affect the discharge of sludge and effluent; (ii) lowering of groundwater table due to pumping of water during excavation; (iv) groundwater pollution due to leachates from solid waste that may be affected by Program works; ▪ Impacts on noise levels during construction and subsequent operations: The team should project out and assess the potential noise impacts from construction stage activities (e.g. from machinery and hauling trucks) as well as later operations of Program assets (e.g. idling busses). Impacts of activities involving vehicles, plant and equipment in the close proximity of households during construction or later operations will require particularly diligent assessment so that appropriate mitigations can be identified; ▪ Impacts on soils: The Team should assess whether there will be any significant impact on soils and shallow groundwater characteristics, for example due to leachates from storage or disposal of construction materials or other forms of waste related to construction or operations of Program works; ▪ Impacts on Ecological Resources: The Team should analyse whether Program activities involve encroachment of sensitive environmental features, cutting of trees or removal of vegetation, and whether any Program works are located in eco-sensitive zones. Based on this analysis, conclusions could be drawn on potential adverse ecological impacts due to Program activities.
127. The team will present findings form the above assessments to teams that are working on other Program preparation activities during a 2 day workshop. The aim of this workshop will be to gather additional information on technical constraints and potential mitigations that may help to improve final designs and contract specifications for Program works.
128. Following workshop feedback, the Team will conduct public consultations on likely impacts of the program at 3 public consultation events at different times of day / days of the week.
129. The outputs of this task will include: (i) a concept stage impact assessment report covering social and environmental considerations; (ii) a 2 day workshop that the Team will prepare for the benefit of teams working on other Program preparation tasks; and (iii) a summary presentation (approximately 1 hour) for RGoB’s Task Force.
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E. Task 3: Analysis of alternatives
130. The team will use results from Task 2 as well as incremental analysis to propose alternatives or enhancements to Program concepts that can be reflected in detailed designs. Proposals will consider alternatives which would achieve the same objectives with reduced or avoided social and environmental impacts, through changes such as, but not limited to: (i) siting; (ii) design modifications / enhancements; (iii) technology selection; (iv) construction techniques and phasing; (v) and operating and maintenance procedures; (vi) concessional fares or social protection mechanisms. Proposals should include estimates for incremental / avoided potential environmental and social impacts, capital and operating costs, sustainability under local conditions, and institutional, training, and monitoring requirements. For the avoidance of doubt, alternatives analysis will include non-physical elements of the Program such as pricing and regulatory regimes associated with Travel Demand Management initiatives.
131. The Team’s assessment will include consideration for a “without Program” alternative, in order to demonstrate what would reasonably be expected to occur to environmental and social conditions in the foreseeable future, based on existing ongoing development, land use, and regulatory practices and other relevant forces.
132. The team will meet individually with adjoining teams that are working on other Program preparation tasks to agree the scope of proposed alternatives that can be practicably included in detailed designs and final plans. Where teams cannot reach mutual agreement on the scope of alternative proposals to include in final designs, they will seek resolution and a final decision from RGoB’s Task Force.
133. The outputs of this task will include: (i) an alternatives analysis report; and (ii) a summary presentation (approximately 45 minutes) for RGoB’s Task Force.
F. Task 4: Preparation of Environmental Social Management Plan (ESMP)
134. After awaiting final designs for Program works, the Team will update and finalize the Environmental and Social Impact Assessment to account for the final configuration of works and plans. The Team will subsequently develop an Environmental Social Management Plan (ESMP) including proposed work programs, budget estimates, schedules, staffing, training requirements, and other necessary support services to implement the mitigating measures identified in earlier tasks. The ESMP would include the following:
▪ Specific mitigation measures (potentially in a tabular form) to cover anticipated significant adverse impacts. This should include an implementation schedule that highlights the responsibility of people and institutions involved in deploying mitigations. A grievance redress system and methodology should be included in the mitigations that the Team develops. ▪ Detailed descriptions for appropriate impact avoidance / reduction measures and compensatory measures as well as the specification of equipment and operational procedures (considered relevant) to reduce envisaged impacts. ▪ Details as required to implement modalities identified for mitigating impacts (e.g. contractual clauses, enforcement measures, tender specifications). These should provide the means for the Program to operationalize mitigation measures during implementation; ▪ Proposed indicators and measurement methodologies that can be tracked, monitored, and evaluated to ascertain Program impacts and the effectiveness of mitigations during implementation. This should include indicators relating to grievances received and the corresponding responses.
135. The Team will proposed a draft ESIA and ESMP to Bhutan’s National Environment Commission and the World Bank for review and feedback. After receiving feedback, the Team will update both documents and subsequently undertake not less than 3 rounds of public consultation. Consultations should occur at
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different times of day to accommodate members of the public with different schedules. The Team will revise both the ESIA and ESMP based on comments received during consultation. The ESMP and ESIA will subsequently be disclosed on the Program website and the World Bank’s InfoShop after receving endorsement by RGoB’s Task Force and clearance from the World Bank.
136. The outputs of this task will include: (i) a final Environmental and Social Impact Assessment; and (ii) a final Environmental and Social Management Plan.
G. Task 5: Resettlement Action Plan (RAP)
137. Based on final detailed designs for works, the Team will develop a Resettlement Action Plan (RAP) which will serve to manage land acquisition and resettlement under the Program. This will include the following:
▪ Identified total area to be acquired under the Program, disaggregated by various categories/use and ownership; ▪ A final tally for the total number of land plots to be acquired and the number of title holders from whom the land is to be acquired for the project; ▪ Accurate figures for the total number of Project Affected Persons with a breakdown for different categories such as informal residential or commercial occupants, membership in one or more vulnerable groups, extent of impact, and chosen resettlement / compensation option (if applicable); ▪ Estimate the replacement cost of various categories of land (commercial, residential, industrial and agricultural) along the road length and project impact area, which is expected to be acquired for the project. The Team will develop estimates for the fair market value and replacement cost of land; ▪ Develop an entitlement matrix to compensate PAPs based on the nature of land or other livelihood loss on account of the Program. This should include options for PAPs to select the nature of compensation / other assistance that they prefer. ▪ Compile recent data on compensation award by local government in similar acquisition activities in the project area; and ▪ Gather land prices, if alternative tenured land were to be made available to the informal settlers away from the proposed infrastructure within a distance so as to not adversely affect the livelihood of informal settlers.
138. The Team will proposed a draft RAP to Bhutan’s National Environment Commission and the World Bank for review and feedback. After receiving feedback, the Team will update both documents and subsequently undertake not less than 3 rounds of public consultation. Consultations should occur at different times of day to accommodate members of the public with different schedules. The Team will revise the RAP based on comments received during consultation. The RAP will subsequently be disclosed on the Program website and the World Bank’s InfoShop after receiving endorsement by RGoB’s Task Force and clearance from the World Bank.
139. The output of this task will include: (i) a final Resettlement Action Plan.
V. TEAM COMPOSITION AND REQUIRED EXPERTISE
140. The team should include the following expertise:
▪ Environmental engineering, biology, ecology or similar fields; ▪ Social mobilization and community consultation; ▪ Social anthropology or similar fields;
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▪ Hydrology; ▪ Quantity surveying and land appraisal. VI. MILESTONES AND INVOICING
141. The Team will invoice at each task milestone according to the contract fractions listed below:
Invoicing Indicative Task Title (% of contract) timing (weeks) M Mobilization and contract signing 5% 1 I Task 1: Baseline data collection and initial research 15% 8 II Task 2: Define and assess likely impacts of the program based on concept designs 15% 12 III Task 3: Analysis of alternatives 15% 17 IV Task 4: Preparation of Environmental Social Management Plan (ESMP) 25% 23 V Task 5: Resettlement Action Plan (RAP) 25% 23 Total 100%
142. The timing listed above is indicative and subject to the Team’s proposed work plan as submitted during tendering for the assignment. The timing of tasks will also be subject to the need for adjoining teams to produce designs and plans for the Program’s implementation under parallel assignments.
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ANNEX G TOR FOR FINANCIAL AND ECONOMIC ANALYSIS
A. Objectives ▪ Understand the Program’s financial and economic sensitivity to different scenarios, input assumptions, and key decisions; ▪ Test different fares regimes and the resulting impacts on the City Bus Services operating results and subsidy requirements; ▪ Develop most likely “base case” scenarios for the Program’s overall financial and economic characteristics B. Scope of Work
143. This assignment will be carried out by a firm or consortium of consultants (hereafter the Team). The scope of work for this assignment will include: (i) financial modeling and analysis; (ii) economic modeling and analysis; (iii) collection and analysis of macroeconomic data with relevance to the Program’s activities; (iv) design and analysis of scenarios with different input assumptions; (v) analysis and policy recommendations for RGoB’s Task Force.
C. Detailed Task Description
144. The Team will develop two detailed models under the Assignment. One will assess financial aspects of the Program and the second will assess the Program’s economic costs and benefits. Both models should be similar in their structure with many common inputs to facilitate ease of use. The Team’s financial model should be in nominal terms and should be capable of modeling inflation scenarios. In contrast, the Consultant’s economic model should be in real terms. All models should be clear, concise, auditable, and free of “macro” functions. The Team will use World Bank and International Monetary Fund Data / forecasts or inputs from the National Statistics Board of Bhutan
145. Basic requirements for each model will be as follows:
Both models: ▪ Model the terms of each source of funding and financing including variables such as: (i) disbursement conditions; (i) interest rates; (ii) principle grace periods; (iii) different repayment schedules (iv) designated uses (i.e. component wise expenditure commitments) by source; and (v) drawdown profiles; ▪ Preform sensitivity analysis to test input assumptions and advise RGoB on the impact of different exogenous factors such as: (i) benchmark interest rates; (ii) foreign exchange fluctuation; (iii) fuel price volatility; (iv) costs / benefits of different technology options; and (v) implementation schedule variations; (vi) implications of different operating scenarios and levels of service for bus services; (vii) different maintenance cost scenarios; and (viii) changes to staff salary regimes; ▪ In consultation with RGoB and development partners, define assumptions relating to “base case” scenarios that will form a central point for all analysis; ▪ Provide an outputs summary page showing graphs and convenient information about scenario results. This should include standard ratios used in financial / economic analysis as well as graphs to provide visual summary of results; and ▪ Develop “user manuals” that can guide future users though model structure, input controls, performing scenario analysis, and general model use.
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Financial model only: ▪ Model inputs that align with the draft Public Service Agreement for the City Bus Service. This should include consideration for the operating subsidy payable from RGoB as well as the factors that drive cost of service and compensation to the City Bus Service; ▪ Model standard financial statements for the City Bus Service that reflect project interventions and long term expenses such as operation, maintenance, asset renewals, and enhancements; and ▪ Model different scenarios for RGoB’s upfront and long term fiscal contributions to both capital and operating expenses under the Program. Economic assessment only: ▪ Perform detailed analysis on different categories of emissions reduction resulting from trips made before / after Program interventions and the economic benefits resulting from different options. This should include disaggregation of benefits by source and should include an overall estimate for quantitative reductions in carbon and other emissions.
146. The outputs of this work will include: (i) completed financial and economic models in MS Excel format; (ii) user manuals for each model; (iv) a brief written report (<10 pages) on the Program’s financial characteristics; and (v) a brief written report (<10 pages) on the Program’s economic costs and benefits; and (vi) a briefing presentation (approximately 45 minutes) that the Team will deliver to RGoB’s Task Force on findings from the assignment.
VII. MILESTONES AND INVOICING
147. The Team will invoice at each task milestone according to the contract fractions listed below:
Invoicing Indicative Task Title (% of contract) timing (weeks) M Mobilization and contract signing 5% 1 I Economic assessment model, user’s manual, and report 35% 7 II Financial assessment model, user’s manual, and report 35% 7 III Final briefing to RGoB’s Task Force 25% 8 Total 100%
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ANNEX H TOR FOR GENDER ANALYSIS AND ACTION PLAN
A. Objectives ▪ Capture and analyse information regarding the transportation needs of women throughout Thimphu; ▪ Ensure that the needs of women with respect to the Program are properly identified and reflected in the design of Program activities; and ▪ Develop a Gender Action Plan to guide the Program’s implementation toward serving the transport needs of women. B. Scope of Work
149. This assignment will be carried out by a firm or consortium of consultants (hereafter the Team). The scope of work for this assignment will include: (i) data analysis; (ii) focus group interviews; (iii) transport “intercept” interviews; and (iv) stakeholder consultation.
C. Task Description
150. Prior research into the travel behaviors of Thimphu’s population have identified significant differences across genders. For example, over 90% of licensed drivers are male. Household surveys have also suggested reduced trip making amongst women. Roughly 62% of male heads-of-household reported making two or more trips per day. In contrast, only 17% of female heads of household reported making two trips per day. The Consultant will build on prior analytical work and will develop proposals aimed at enhancing the Program’s benefits for women. Specifically, this will include:
▪ Analyse existing data sources such as results from the World Bank’s household survey, Bhutan Living Standard Surveys, RSTA vehicle licensing data, and other sources to compile existing evidence of women’s travel behaviour and transport preferences. ▪ Conduct approximately 8-10 focus group interviews with women, including bus customers, licensed drivers, non-motorized transport primary users, and taxi users. Focus groups should represent diverse cross sections of the population and should include individuals of different income levels, residential locations, and education levels. The Consultant will draft a focus group sampling plan and will provide this to the World Bank and RGoB’s Task Force for review and approval; ▪ Conduct on board “intercept” interviews with women who are using the City Bus Service to identify perceptions of existing service and demand for future improvements; ▪ Undertake stakeholder consultations with RGoB institutions, non-governmental organizations, professional associations, and private enterprises to gather feedback on the transportation needs of women; and ▪ Develop a Gender Action Plan with specific interventions to shape Program activities according to the identified transportation needs of women. In developing this plan, the Consultant should work closely with other teams who are implementing Program preparation tasks; and ▪ Propose 3- 5 potential indicators to measure the Program’s impact on women.
151. The outputs of this work will include: (i) a brief report (10-15 pages) on analytical findings regarding the transport behavior and needs of women and potential indicators to measure the Program’s impact in this regard; (ii) a Gender Action Plan with recommendations to enhance the benefits that women derive from Program interventions; (iii) a final briefing for RGOB’s Task Force (approximately 30 minutes) to present findings from all work.
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VIII. MILESTONES AND INVOICING
152. The Team will invoice at each task milestone according to the contract fractions listed below:
Invoicing Indicative Task Title (% of contract) timing (weeks) M Mobilization and contract signing 5% 1 I Briefing report on analytical findings 35% 7 II Gender Action Plan 35% 11 III Summary presentation to RGoB’s Task Force 25% 12 Total 100%
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ANNEX I TOR FOR A PROGRAM MANAGEMENT CONSULTANCY
IX. OBJECTIVES AND SCOPE OF WORK ▪ Ensure that different work streams required for Program preparation and the different teams involved in executing them are coordinated across assignments; ▪ Facilitate the work of RGoB’s Task Force; ▪ Maintain oversight of the Program preparation budget and delivery schedule; ▪ Develop and maintain a web portal and social media accounts for public communications, dissemination of outputs from all activities, collection of comments, and general administration of all preparation activities; ▪ Coordinate public consultations, compile feedback, and ensure that results of consultations are reflected in Program activities; ▪ Serve as the Program’s focal point for public communications and interactions with media (newspaper, television, radio, etc.); and ▪ Coordinate quality control of outputs from Program preparation tasks. A. Scope of work
153. This assignment will be carried out by a consortium of individual consultants (hereafter the Team). The scope of work for this assignment will include: (i) scheduling and coordination; (ii) budgeting; (iii) regular progress monitoring and reporting; (iv) sourcing and supervision of individual experts for quality control assignments; (v) ad-hoc administrative support to RGoB’s Task Force; (vi) website development and maintenance; and (vii) public outreach and consultations.
X. DETAILED TASK DESCRIPTION A. Task 1: Website development and social media accounts
154. The team will design, develop, and maintain a website for Program activities where members of the public can obtain information on Program activities, download reports / data, and access disclosed documents. The Program website should also include a comments portal for members of the public to lodge general feedback and / or grievances on Program preparation activities. For the avoidance of doubt, the Team will be responsible for arranging website hosting, updating website content, and ensuring the website’s availability throughout the duration of the assignment. The cost of web-hosting in the financial proposal will be included as a pass-through expense that will be paid through monthly invoicing. Web hosting services should offer scalability in order to meet demand for use of the site.
155. The Team will design the Program website to provide at least the following pages / functionality / requirement:
▪ Homepage: containing convenient links, graphics, linkages to the Program’s social media accounts, and different RGoB sites affiliated with the Program. No scrolling should be needed on the home page for a standard user. The homepage should include a “carousel” with images, graphics from conceptual designs, and other visual material relating to the Program. The World Bank will provide the Team with images developed for the recent City Bus Access Technical Assistance initiative. ▪ Feedback and comments page: containing a web-form for users to provide written text comments on specific preparation activities or the Program in general. Fields on this page should serve to collect basic information that will categorize comments received (i.e. specific topic, basic demographic information from the user, follow up contact information). The Team will also develop a satisfaction survey that will be available online which will offer multiple choice questions about perceptions of the
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Program, awareness, and the feedback on specific preparation activities. This survey will be available on the Feedback and comments page. The team will provide RGoB’s Task Force and the World Bank with an organized database of all comments and survey responses received via the feedback and comments page as well as public consultations. ▪ About the Program page: this will include a summary of the Program, its objectives, links to RGoB partners and development partners, and additional information such interactive maps showing proposed project sites and public transport routes. The “about the program” page should also include contact information for the Program Management Consultancy, the World Bank, and RGoB institutions that will be leading specific preparation activities. ▪ Publications and disclosures page: this will contain downloadable reports, environmental documents, data sets, meeting minutes, etc. relating to preparation activities. ▪ Notices and news: this page will provide a summary of Program updates and press releases relating to Program activities. Users should have an option to sign up for automated e-mail notifications regarding preparation events such as public consultations / presentations, new disclosures, report publications, etc. ▪ Site map: this should provide links to all other pages on the Program website with an indicated structure for the site. Basic website requirements: ▪ The Team will develop the Program website to meet Level A criteria (at a minimum) for Web Content Accessibility Guidelines (WCAG) as published by the World Wide Web Consortium Web Accessibility Initiative (WAI). ▪ The Team will ensure that the Program website can be accessed through search engine “spiders” and will be search-engine optimized. ▪ The Team will design the website with both a “full” and mobile version for use on smartphones and similar devices ▪ All pages on the Program website should have a common navigation bar with links to the home page, comments section, publications and disclosure section, and “about the Program page” and others. ▪ The website should include a local search function that allows users to search for website content; ▪ All code on the Program website should meet World Wide Web Consortium (W3C) specifications; ▪ The Program website should include built in analytics that provide monitoring data on the following: (i) traffic sources; (ii) visitor loyalty; (iii) visitor recency; (iv) distribution of lengths of visits; (v) page reports; (iv) search tag clouds; (v) website performance analytics such as load time, response times, concurrent users, error rate, ; and (vi) other common metrics. These should be captured in a common and convenient dashboard for sharing with RGoB’s Task Force and other stakeholders. Analytics should be designed using open source software such as Open Web Analytics or a comparable package. ▪ The Program website must be easily maintainable using low cost widely available software. The Team will also provide training to at least 3 RGoB personnel on website maintenance and management prior to payment of the final invoice under the assignment. ▪ All pages on the Program website should be able to load completely within 10 seconds on a 56k dial- up connection. For the mobile version of the site, all pages should load completely within 10 seconds using standard mobile data services in Thimphu. The Program website should be able to display content in a text only version to accommodate users with poor connectivity ▪ When a user clicks to open .pdf files or other files (MS Word, MS Excel) a new browser window should open.
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▪ The Team will ensure that the Program website achieves at least 99.5% uptime availability and will be responsible for managing website security to ensure appropriate use. Social media 156. In parallel with the Program website, the Team will also develop social media accounts for the Program with: (i) Facebook; (ii) Twitter; and (iii) WhatsApp. As part of this activity the Team will do the following:
▪ Regularly cross pollinate social media accounts with website content, links to project reports, media releases, and general announcements; ▪ Routinely monitor social media accounts to ensure proper use, timely interaction with individuals posting to those accounts, removal of inappropriate content such as “fake news,” “trolling,” “phishing,” promotion of third party sites, etc.; and ▪ Collect comments from the public submitted via social media and enter these in the electronic database for tracking public feedback.
157. The phasing of this task will entail three stages as follows:
▪ Task IA: concept design - The Team will present concept designs for the Program website, social media accounts, comments database, and web survey to RGoB’s Task Force and the World Bank for review and feedback; ▪ Task IB: full launch - after revising concept designs to accommodate the Task Force’s feedback, the Team will finalize designs and undertake a subsequent round of presentation to the Task Force for final endorsement / revisions before fully launching the website, comments database, social media accounts, and web survey; and ▪ Task IC: revisions and relaunch - after operating the website and social media accounts for 4-6 months, the Team will take stock of website analytics, web surveys, public feedback, comments database, and overall performance. This will be presented to RGoB’s Task Force for recommendations to enhance performance. The Team will revise the Program website, social media accounts, web survey, and comments database to address lessons learned and will subsequently re-launch improved versions that will remain in service throughout the Program.
158. The outputs of this work will include: (i) delivery of a concept designs for the Program website, comments database, web survey, and social medial accounts (Task IA); (ii) full launch of the same following Task Force feedback (Task IB); and (iii) final revisions to address lessons learned (Task IC).
B. Task 2: Program coordination and support to RGoB’s Task Force
159. The Consultant will work in close collaboration with RGoB’s Task Force to provide support for managing Program preparation activities and will serve as an overall project delivery manager. Specifically, this will include:
▪ Coordinate the activities of different Program preparation tasks to ensure effective communication between teams, sensible phasing of activities, and execution according to agreed timelines. The Team will play a particularly critical role in coordinating the timing and interaction between teams carrying out social and environmental assessment work and parallel teams who will be studying and preparing engineering designs for Program works. Each of these tasks should inform the other and there will be a need for parallel teams to maintain close communications with each other; ▪ With close collaboration with RGoB’s Task Force, track and manage the budget for Program preparation and the management of payments to firms / individuals tasked with executing different
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Program preparation activities. This should include support for managing and costing any unforeseen variations as required to deliver high quality outputs; ▪ Develop and maintain critical path schedule for Program delivery with considerations from the outputs of different Preparation assignments and their envisaged duration; ▪ Support RGoB’s implementing institutions with preparing and procuring assignments required for Program preparation. This will include preparation of TOR, tender specifications, formulation of procurement strategies and approaches, and evaluations (if applicable); ▪ Source, develop TOR for, procure, and direct the activities of experts who can undertake quality reviews at different stages of each preparation activity’s execution. Specifically, these external reviews should ensure that final outputs meet international standards and are fit for inclusion in a final proposal to the GCF for consideration. The cost of outside experts will be paid on a pass-through basis during monthly invoicing. ▪ Prepare and deliver monthly briefings to the RGoB’s Task Force and development partners. Updates should include basic snapshots of overall preparation activities in addition to summaries of interim outputs delivered; ▪ With guidance from RGoB’s Task Force, coordinate activities and communications between different RGoB implementing institutions; ▪ Coordinate and support public consultations held by different teams that are executing Program preparation tasks. This should include arranging facilities, coordinating attendance by RGoB stakeholders, and providing widespread public notification of consultation events; ▪ Provide ad-hoc question and answer support RGoB and development partners on Program preparation related tasks. This should include sourcing and compiling inputs from teams and individuals who are executing individual preparation tasks; ▪ Prepare monthly progress summaries for distribution to RGoB’s Task Force, the World Bank, GTCK and other stakeholders. Monthly progress summaries should include updated snapshots of the Program preparation budget and schedule as well as an executive summary of preparation activities; ▪ Serve as a general secretariat for the RGoB’s Task Force to coordinate regular monthly meetings, document minutes and agreements, and provide technical content for guiding discussions during Task Force meetings. The Team should also coordinate and support interim Task Force meetings as necessary to address unforeseen implementation challenges; ▪ Maintain a local office in Thimphu with “hot desk” facilities, Wi-Fi, telephones, meeting rooms, and basic facilities for the Team’s staff and visiting teams who are working on other preparation tasks for the Program. The cost of office facilities will be paid as a pass-through expense as part of regular monthly invoicing. For the avoidance of doubt, this will include: (i) rent; (iii) actual cost of office equipment; (iv) utilities including power, telecoms, internet, and water / sanitation services; (v) maintenance related expenses; and (vi) taxes directly related to office facilities. Pass-through costs will not include vehicle related expenses. The team will hand over all property (physical, software, etc.) that was procured as a pass-through basis at the end of the assignment to RGoB. 16. The outputs of this work will include: (i) initial and regularly updated Program preparation budget; (ii) initial and updated critical path schedule for Program preparation; (iii) general secretariat support to RGoB’s Task Force; (iv) ad-hoc support to RGoB implementing institutions; and (v) support to RGoB implementing institutions for procuring, supervising and controlling quality of different Program preparation tasks; (vi) monthly progress summaries for each month of activities; (v) initial and regularly updated Program website and associated public comments data; (vi) office facilities as noted above. The Team’s final invoice will be held until handover is made.
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XI. MILESTONES AND INVOICING
160. The Team will be engaged under individual contracts and will receive compensation based on agreed day rates and per diem (if applicable). Items including: (i) web hosting; (ii) costs relating to Program office facilities; (iii) costs of independent experts to handle quality reviews; (iv) incremental facilities and publication expenses relating to public consultation events will be handled directly on the Team’s behalf. The indicative timing of the team’s major deliverables is as follows:
Indicative Task Title timing (weeks) M Mobilization and contract signing 1 IA Task 1A: concept design 5 IB Task 1B: full launch 7 IC Task IC: revision and relaunch 28 Completion of services (end of all PPF assignments) 44 Total 85
Project/Programme Title: Bhutan Green Transport Program
Country(ies): Kingdom of Bhutan / South Asia Region
National Designated Gross National Happiness Commission Authority(ies) (NDA):
Accredited Entity(ies) (AE): The World Bank
Date of first submission/ [2016-11-03] [V.1] version number:
Date of current submission/ [2018-09-05] [V.3] version number
Please submit the completed form to [email protected], using the following name convention in the subject line and file name: “CN-[Accredited Entity or Country]-YYYYMMDD”
PROJECT / PROGRAMME CONCEPT NOTE Template V.2.2
Notes • The maximum number of pages should not exceed 12 pages, excluding annexes. Proposals exceeding the prescribed length will not be assessed within the indicative service standard time of 30 days. • As per the Information Disclosure Policy, the concept note, and additional documents provided to the Secretariat can be disclosed unless marked by the Accredited Entity(ies) (or NDAs) as confidential. • The relevant National Designated Authority(ies) will be informed by the Secretariat of the concept note upon receipt. • NDA can also submit the concept note directly with or without an identified accredited entity at this stage. In this case, they can leave blank the section related to the accredited entity. The Secretariat will inform the accredited entity(ies) nominated by the NDA, if any. • Accredited Entities and/or NDAs are encouraged to submit a Concept Note before making a request for project preparation support from the Project Preparation Facility (PPF). • Further information on GCF concept note preparation can be found on GCF website Funding Projects Fine Print.
PROJECT / PROGRAMME CONCEPT NOTE Template V.2.2 GREEN CLIMATE FUND | PAGE 1 OF 15
A. Project/Programme Summary (max. 1 page) ☐ Project A.2. Public or ☒ Public sector A.1. Project or programme ☒ Programme private sector ☐ Private sector Yes ☐ No ☒ A.3. Is the CN submitted in ☐ Confidential If yes, specify the RFP: A.4. Confidentiality1 response to an RFP? ☒ Not confidential ______
Mitigation: Reduced emissions from:
☐ Energy access and power generation
☒ Low emission transport
☐ Buildings, cities and industries and appliances A.5. Indicate the result ☐ Forestry and land use areas for the Adaptation: Increased resilience of: project/programme ☐ Most vulnerable people and communities
☐ Health and well-being, and food and water security
☒ Infrastructure and built environment
☐ Ecosystem and ecosystem services A.7. Estimated A.6. Estimated mitigation adaptation impact 122,242 people impact (tCO2eq over 11,782/annum (number of direct (15% of population) lifespan) beneficiaries and % of population) A.8. Indicative total project Amount: USD 49,800,000 A.9. Indicative GCF Amount: cost (GCF + co-finance) funding requested USD 23,200,000 A.10. Mark the type of financial instrument ☒ Grant ☐ Reimbursable grant ☐ Guarantees ☐ Equity requested for the GCF ☐ Subordinated loan ☐ Senior Loan ☐ Other: specify______funding A.12. Estimated This refers to the total A.11. Estimated duration a) disbursement period: project/ Programme period over which the of project/ programme: b) repayment period, if applicable: lifespan investment is effective. A.13. Is funding from the Yes ☒ No ☐ ☐ A or I-1 Project Preparation Other support received ☐ If so, by A.14. ESS category3 ☐ B or I-2 Facility requested?2 who: ☐ C or I-3 A.15. Is the CN aligned A.16. Has the CN been with your accreditation Yes ☒ No ☐ Yes ☒ No ☐ shared with the NDA? standard?
Yes ☒ No ☐ A.18. Is the CN A.17. AMA signed (if If no, specify the status of AMA included in the Entity Yes ☒ No ☐ submitted by AE) negotiations and expected date of Work Programme? signing:
1. Emissions of air pollutants and greenhouse gases are among the most pressing environmental challenges faced by Bhutan. Increasing rates of motor vehicle ownership A.19. Project/Programme and use have been bring impacts on the Bhutanese environment (e.g. changes to land rationale, objectives and use, emissions, congestion, noise, etc.). The objective of the Green Transport Program approach of for Thimphu city is to maintain a pristine environment with clean air and with minimum programme/project (max 100 words) emissions from the transport sector by promoting greener transport modes including zero emissions vehicles, public transport, and non-motorized transport.
1 Concept notes (or sections of) not marked as confidential may be published in accordance with the Information Disclosure Policy (Decision B.12/35) and the Review of the Initial Proposal Approval Process (Decision B.17/18). 2 See here for access to project preparation support request template and guidelines 3 Refer to the Fund’s environmental and social safeguards (Decision B.07/02)
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2. The Royal Government of Bhutan has established a multi-sectoral taskforce via Executive Order C2/172 dated January 5th, 2016 to coordinate the action of different stakeholders in urban transport. The World Bank, the accredited entity, will be accountable directly to the GCF Board for the overall management, as well as for the financial, monitoring and reporting aspects of activities as a manager of the GCF fund. Green Technology Center (GTC) is the Executive Entity (EE) that supports a range of activities geared towards achieving the program.
3. There are three broad components to the Program including: (i) investments in green transport infrastructure; (ii) investments in zero emissions performance buses and other operating assets for bus services; and (iii) technical assistance and institutional development. The program will contribute to the implementation of the Nationally Determined Contributions (NDCs) of Bhutan.
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B. Project/Programme Information (max. 8 pages) B.1. Context and baseline (max. 2 pages) 4. Bhutan has a national population of approximately 757,979 people. Approximately 122,242 people live in the capital city of Thimphu.4 Despite a relatively small national population, Bhutan’s urban areas are undergoing a significant transition. Between 1990 and 2010, the number of Bhutanese living in urban areas nearly tripled. Increasing rates of motor vehicle ownership and use have accompanied this trend bringing impacts on the urban environment (e.g. changes to land use, emissions, congestion, noise, etc.).
5. In response, RGoB has both limited the import of private vehicles at times and increased taxes on upfront vehicle purchases but have proved insufficient and difficult to sustain.5 These measures are likely to become less effective with time as vehicle restrictions have also resulted in unmet needs for urban mobility. There is a pressing need for Bhutan to accelerate the availability of alternative modes of transport that provide greater sustainability. The Royal Government of Bhutan has therefore sought to promote “greener” modes including low or zero emissions vehicles, public transport, and non-motorized transport. The World Bank and the United Nations Development Program have been engaged with the Royal Government of Bhutan to support this initiative with analytical work. Both UNDP and the World Bank are also now preparing complementary grant-funded investment operations to develop infrastructure and public transport operations that can support the Royal Government of Bhutan’s vision for green transport.
6. The Royal Government of Bhutan (RGoB) has set out its policy for urban transport in a guiding document known as “Bhutan Transport 2040 Integrated Strategic Vision” as summarized below:
“The urban transport strategy should focus on providing attractive public transport services and facilities for pedestrians, so that public transport and walking become the dominant mode in the central area and for short trips. The strategy must also seek to control the impact of private cars through careful management of vehicle numbers and use. The overall objective is to create vibrant, functional, and liveable “green” cities, thus minimizing the adverse effects of traffic growth.”
7. The Royal Government of Bhutan has already taken action aligned with this policy to try and stem rising dependence on private conventional vehicles and fossil fuel. This began with the development of a City Bus Service in 1999 with a fleet of two buses. Services have expanded greatly and now include a fleet of 32 buses that carry approximately 6,000 people per day. In addition, City Bus Co.’s management has achieved many positive results such as expanding the bus fleet, piloting the use of pre-paid e-tickets, devising a system for handling customer grievances, and piloting new infrastructure designs for bus shelters.
8. The Royal Government of Bhutan has adopted Vehicle Emissions Roadmap Bhutan in 2017 to maintain a pristine environment with clean air and with minimum emissions from the transport sector. In this Roadmap, five core policies have been identified for implementation based on their potential impact, costs and benefits as follows:
i. In line with the Indian fuel standard Bhutan will only import diesel and gasoline with less than 50ppm Sulphur as of 01. 2018 and diesel and gasoline with less than 10ppm Sulphur as of 01. 2021 ii. Bhutan will implement in line with India new vehicle emission standards for gasoline and diesel vehicles requiring as of 01. 2018 BS-IV (equivalent to Euro 4) and as of 01. 2021 BS-VI (Euro 6). iii. Bhutan will upgrade the current Inspection/Maintenance system improving impact and controls. iv. Bhutan will restrict the import of diesel powered cars and light vehicles of less than 3.5t as of 01. 2018. v. Bhutan will design a low-carbon vehicle strategy and tap international climate finance to assist in the implementation of latter.
9. In particular, Bhutan has already made initial steps towards promoting low carbon vehicles by reducing taxes on hybrid and electric cars. The focus shall be on taxis, buses and urban freight vehicles as these have the largest impact on air quality and circulate in urban surroundings making re-charging simpler. Bhutan is currently realizing a low-carbon
4 National Statistics Board 5 Most recently, RGoB lifted a ban on vehicle imports in July 2015. Two wheeled vehicles remain under restrictions however.
PROJECT / PROGRAMME CONCEPT NOTE Template V.2.2 GREEN CLIMATE FUND | PAGE 4 OF 15 commercial vehicle strategy including financial instruments to mass deploy low carbon vehicles. Bhutan intends to tap available international climate funds to assist the country in implementing a low-carbon vehicle policy.
10. The transport sector has been identified as a key contributor to Bhutan’s rising emissions as communicated under the United Nations Framework Convention on Climate Change (UNFCCC). In 2003 and again in 2013, Bhutan undertook a Technology Needs Assessment (TNA) for climate change mitigation to identify needs and priorities for deploying climate technologies within national development objectives. Bhutan’s 2013 TNA includes proposals for Intelligent Transport Systems and some form of dedicated right-of way public transport solution that would be accompanied by improvements in non-motorized transport. These proposals align with Bhutan’s national development plans. Specifically, outcome #1 for Bhutan’s 11th Five Year Plan seeks to enhance “access to adequate, sustainable and inclusive public transport”. Furthermore, Bhutan’s overall national goal for the 11th Plan, specifically “Self-reliance and Inclusive Green Socio- Economic Development”
11. In accordance with relevant paragraphs of Decisions 1/CP.19 and 1/CP.20 the Kingdom of Bhutan communicate its Intended Nationally Determined Contribution (INDC) and re-communicates their resolve to remain carbon neutral by ensuring that their emission of GHGs does not exceed the sink capacity of their forests. While making this sincere commitment to remain carbon neutral and put forward this INDC, in particular, the Royal Government of Bhutan has established priority strategies, plans and actions for mitigation to support promotion of low carbon transport system by (i) improving mass transit and demand side management of personal modes of transport; (ii) exploring alternative modes of transport to road transport such as rail, water and gravity ropeways; (iii) improving efficiency in freight transport; (iv) promoting non-motorized transport and non-fossil fuel powered transport such as electric and fuel cell vehicles; (v) improving efficiency and emissions from existing vehicles through standards and capacity building; and (vi) promoting use of appropriate intelligent transport systems. However international support will be essential to ensure success in implementing the strategies, plans and actions for low-carbon transport development.
12. Public transport and para-transit services in Thimphu are varied and include the following: (i) urban public buses provided by City Bus Services; (ii) bus services offered by individual schools; (iii) employer-specific buses (government and private); and (iv) taxis (approximately 3,500) that operate both individual passenger services and shared ride services as market conditions warrant. City Bus Services is a division of Bhutan Postal Corporation which is a government owned entity. Their 32 buses carry approximately 6,000 passengers per day representing roughly 6% of all trips in Thimphu. Taxis carry about 30% of trips per day, often in the form of shared ride services whereby multiple independent passengers share a taxi.
13. The current modal shift of urban transport in Thimphu reflects a constrained supply of public bus services. The World Bank recently conducted a 1,000 household survey of transport preferences and travel behaviors in Thimphu. Roughly 30% of non-bus users reported that long an irregular waiting times for buses was the primary reason for their choice of alternative modes. A further 30% of non-users reported that they did not use buses because the route was too indirect or the stop was too far from their origin or destination. In contrast, approximately 77% of regular taxi users who responded to the World Bank’s household survey on travel behaviors cited that the primary reason that they use taxies is because they are “quick & convenient.” However, it is important to note that taxi fares are roughly 2-3 times average bus fares (depending on distance). Persons with impaired mobility can often pay much more than this as well when they cannot share rides or require pickup from their homes. This creates an affordability issue for lower income households. Roughly 46% of respondents to the World Bank’s survey who do not use taxis cited affordability as a key concern. In contrast, 76% of regular city bus users cited the affordability of bus fares as a primary reason for their choice of mode.
14. Relative to other IDA countries in South Asia, Bhutan’s public transport related institutions are strong. For example, the City Bus Service has a functioning grievance redress mechanism for passengers. This currently consists of the City Bus Service’ manager’s personal mobile number posted conspicuously on the inside of each bus and on ticket receipts. Despite its simplicity, this system reportedly handles approximately 6-10 complaints per day. In 2013, MoIC, Thimphu Thromde (the municipal government of Thimphu), and the City Bus Service have developed preliminary plans for investments in stops and pedestrian infrastructure than can improve the attractiveness of bus services. These plans have remained unfunded to date. The proposed World Bank intervention under the Program would help enable portions of these plans to move forward.
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15. There is much that can be done to improve City Bus Services – especially for low income segments of Thimphu’s population. Most notably, there is an immediate need to overcome barriers to accessing bus services. These barriers include: (i) current urban bus services offer insufficient capacity at peak hours which force would-be customers to pay more for taxis; (ii) services are too infrequent and unreliable; (iii) underdeveloped stop infrastructure and pedestrian linkages result in barriers to safe access – particularly for mobility impaired segments of the population; (iv) limited passenger information on bus routes, timetables, and interchanges impede the ability of new users to switch to bus. Addressing these barriers to access is critical for improving mobility and the affordability of that mobility for low income segments of Thimphu’s population and individuals with impaired physical mobility who may not have access to private modes.
16. The City Bus Service currently serves 10 bus routes in Thimphu with service headways ranging between 15 and 30 minutes. Individual buses show route numbers in their windshields, and there are individual route maps available on the RSTA website. It is important to note that there is no up-to-date map showing City Bus Service’s integrated route network. There is also no online customer interface for bus services such as a ‘ride guide’ or ‘trip planner’ application. These would be developed under the World Bank and UNDP supported interventions under the Program.
B.2. Project/Programme description (max. 3 pages) 17. The concept for Thimphu’s Green Transport Program entails a US$ 48.6 million multi-partner approach. Each development partner will support a scope of activities under an integrated program that the Ministry of Information and Communications (MoIC) will direct. At present, the World Bank and the United Nations Development Program (UNDP) are preparing two complementary operations relating to Thimphu’s urban public bus services, urban transport policy development, and institutional capacity. World Bank-managed funds would come from Bank-administered donor trust funds including the Global Partnership on Output-Based Aid. UNDP-managed funds would form part of a Nationally Appropriate Mitigation Action (NAMA) aimed at climate change mitigation. Both World Bank and UNDP sources are finite as it the amount of funding that the Royal Government of Bhutan (RGoB) can commit. This constrains the extent of work possible under the Program. Additional contribution from the GCF would help address this and would enable incremental and highly complementary investments in non-motorized transport infrastructure, and low-carbon public transport services that enhance the level of impacts achieved.
18. There are three broad components to the Program including: (i) investments in green transport infrastructure; (ii) investments in zero emissions performance buses and other operating assets for bus services; (iii) and technical assistance and institutional development. Basic summaries of each component are below.
19. Component A- investments in Green Transport Infrastructure. This includes the development of bus stops, pedestrian linkages, cycle paths, bus interchange terminals, and bus priority enhancements along existing roads. A key aim of Component A is to address physical barriers to access that inhibit or otherwise reduce the attractiveness of using bus services. The World Bank is preparing to support construction of approximately 140 new / improved bus shelters with linkages to the pedestrian network in support of the Program. GCF funding for this component would support the following:
▪ Pedestrianization of Norzin Lam which is the main 1.3 kilometre road through Thimphu’s central business area); ▪ Development of a North-South cycle path network along the key travel corridors that commuters take in Thimphu; ▪ Safe road crossings for pedestrians and cyclists; and ▪ Investments in a BRT system for Thimphu along the city’s primary 16 km north-south corridor. 20. The International Finance Corporation (the World Bank’s private sector arm) has recently supported a PPP transaction for two paid-parking facilities near the northern and southern ends of Norzin Lam (signed in Sept. 2014). These facilities have mobilized approximately US$ 8 million in private finance and will provide 550 off-street parking spaces that will enable Thimphu to reallocate physical space on Norzin Lam to pedestrians. Terms of the concession contract for Thimphu’s multi-level car parking facilities will also require private parking operators to provide a revenue share to Thimphu Thromde. Initial estimates at the time of tendering suggested that this would amount to approximately US$ 230,000 per year.
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21. Component B- Investments in Green Public Transport operating assets: Specifically, this includes higher quality bus rolling stock with zero emissions performance (hybrid and plug-in hybrid electric buses) and disability access features, bus information system (BIS), cashless ticketing systems, and a bus control systems. The aim of these investments is to enhance service quality, to improve reliability, to expand the amount of physical capacity on the bus network, and to increase the number of people that buses can carry – especially during peak hours. The intended impact of investments in operating assets is to reduce the economic cost and emissions intensity of urban transport in Thimphu. The primary means of achieving this is to shift trips onto public transport from private modes. The World Bank is seeking to support additional trunk and feeder route buses and the development of a ride guide application. UNDP supported a pilot on cashless “e-ticketing” for buses and will aim to support development of a bus control system, CCTV for buses, and other intelligent transport systems. In addition, UNDP’s proposed NAMA is aiming to pilot 4 electric buses. Green Technology Center Korea is recently supporting to install in Thimphu city an Intelligent Transportation System (ITS) that allows public- transportation companies to provide real-time information to passengers and to provide monitoring and management tools to optimize service management and administration. GCF funding for this component would support the following:
▪ Procurement of approximately 8 zero emissions performance buses (e.g. hybrid or plug-in hybrid electric buses) to serve Thimphu’s BRT route and other high demand routes; and ▪ Procurement of spare parts to facilitate maintenance of zero emissions buses. 22. Component C - technical assistance and institutional development: this component will fund analytics, policy advice, marketing assistance, support to improve operational performance of City Bus Services, implementation support, and project management. The aim of this component is to strengthen Program delivery and the underlying institutions that manage urban transport in Bhutan. UNDP, Green Technology Center Korea and the World Bank are preparing concepts for technical assistance and institutional support that will run alongside other activities.
Figure 1 Logical framework for Green Transport Program for Thimphu
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REGULATION, INSURANCE, AND TAXES 23. Regulation of urban transport vehicles falls to Bhutan’s Road Safety and Transport Authority (RSTA) which sits under MOIC. RSTA has a mandate for managing vehicle registration (including buses), licensing drivers, and regulating vehicle safety. This entails 6 monthly safety checks of City Bus Service’s buses to ensure compliance with relevant standards. The current regime for safety regulation would apply to buses and their operation under the Program.
24. RSTA also has jurisdiction over setting bus and taxi fares, and taxi fares and agreeing bus routes (which have historically originated from City Bus Service, Thimphu Thromde, and MoIC). Shortfalls between fares and operating / capital expenditures for the City Bus Service come directly from the Ministry of Finance as a budgetary transfer. The existing process for both routes and fares would apply under the Program. Importantly however, the process for accommodating shortfalls would be governed by a Public Service Contract.
25. The Royal Bhutan Police enforce safety, traffic rules, and vehicle capacity limits on Thimphu’s roads. Most notably, this includes restrictions on bus overloading. The rigor of enforcement for such rules has increased in the past financial year which has had both positive and negative impacts on bus services. While reduced loading has improved the comfort and safety of bus services, it has also cut capacity at peak hours. Overloading restrictions would continue to apply to City Bus Service’s fleet under the Program.
26. Bhutan taxes upfront vehicle purchase based on engine capacity and technology across three dimensions: (i) sales tax; (ii) customs duty; and (iii) and a “green tax” which primarily affects conventional fuel vehicles and vehicles with larger engine capacity. Hybrid and electric vehicles are already exempt from taxation across all three taxes that pertain to upfront vehicle purchases. It is important to note that Bhutan has a free trade agreement with India that exempts Indian made vehicles from the customs duty noted above. This effectively provides conventional Indian vehicles with a 25%- 50% upfront cost advantage in the local market. Buses purchased under the program would likely fall into the 180% total tax bracket. The proposed approach to accommodating this would be for RGoB to fund all taxes as part of its parallel financing commitment to the Program.
IMPLEMENTATION ARRANGEMENT 27. Figure 2 (below) summarizes a basic schematic of Program funds flow and the key agreements that will support implementation. GCF and World Bank administered money would use the national budget system would rely on recipient led procurement and financial management processes. These are well developed in Bhutan and adequate for the Program’s purpose. UNDP administered actives would entail direct procurement of goods and services and direct payment.
Figure 2 Funds flow and schematic of Program roles and agreements
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28. It is important to note that many of the roles / responsibilities required for Program implementation are already in place and functioning on both formal and informal levels. For example, Thimphu Thromde, City Bus Service and MoIC have already been working together on bus network development plans that include rough concepts for upgraded bus stop infrastructure. Similarly, MoIC already leads on sector policy and RSTA (under MoIC) also already regulates bus fares, routes, registration, and vehicle safety standards.
RISKS AND MITIGATION MEASURES 29. City Bus Service, Thimphu Thromde (the city government), and MoIC have identified a long list of locations for Program works relating to bus stop infrastructure. RGoB, with World Bank specialist support, has conducted an environmental and social screening of these sites to assess potential safeguards risks. In the case of bus shelters, sites are all along existing road right of ways, within the vicinity of the Thimphu urban area. The proposed sites are all currently in use as bus stops, but lack shelter infrastructure. The bus terminal to be upgraded is an existing facility in the urban core of Thimphu. Proposed upgrading activities at the bus terminal include a shelter or passenger waiting, bus bays, shop and retail space, etc. Based on site screening carried out, all potential investment locations are in modified habitat or urban environments (e.g., along existing road right of ways or in built-up areas, etc.). No forests will be affected. No natural habitats will be impacted. However, there may be adverse environmental or social impacts associated with the civil works, and the potential decommissioning of some old buses as required by government safety regulations. In addition, the proposed Program will result in higher frequencies of bus services, which may also carry adverse social and environmental impacts. For the development of BRT infrastructure, the need for road widening cannot be ruled out in order to provide for dedicated busways. This would be determined upon further engineering investigation and the appropriate safeguards instruments would accordingly be prepared. Impacts such as these are being assessed in greater detail and will be included in an Environmental and Social Management Plan (ESMP) that will guide measures to mitigate impacts according to the World Bank’s safeguards policies.
Risk Mitigation Strategy Rating The staff of City Bus Service may leave for other positions within Bhutan Post. Much of the knowledge that enables City Bus The World Bank will seek RGoB’s assurances via the Services to function comes from ‘on the job’ legal agreement to maintain staffing continuity of City Moderate learning that would be difficult to replace. Bus Service as much as possible throughout The manager of City Bus Service in implementation. particular is key to the success of the proposed Program. Customer charges do not currently cover the The Bank has consulted with MoF regarding their cost of bus services. The sustainability of intention to continue operating subsidies to City Bus City Bus Service depends on continued Service. At present, there are no plans to discontinue Low operating subsidy from the Ministry of this approach as bus services are seen as a critical Finance. Subsidies are not guaranteed to social service. The project Grant Agreement will also continue into the future. include a formal covenant to reaffirm this commitment. The proposed Public Service Agreement would help to set ‘rules of the game’ for the future relationship Implementation will rely on close between the key institutions involved in Thimphu’s bus collaboration between MoF, MoIC/RSTA services. Terms of this agreement will set transparent Thimphu Thromde, and City Bus Service. mechanisms for governing service provision and While these institutions have worked well adequate resourcing needed to achieve agreed targets. Moderate together in the past, continued effectiveness Adequate annual budgeting for both Thimphu Thromde in collaborating is not a guarantee and could and City Bus Service will be a covenant in the World impede results. Bank’s Grant Agreement with RGoB. This will help ensure that each has the resources needed to discharge their respective functions.
Voluntary land donation will be the preferred means for The Program will require land. Thimphu acquiring incremental land required for the Program. Thromde already owns most of this land. Where a proposed stop infrastructure would require However, a need for land acquisition may Moderate other methods of land acquisition, the implementing arise which could expose the Program to institutions will first pursue other technical options such safeguards related risks. as designs that require less land or alternative sites.
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The RGoB’s current transport policy as articulated in RGoB currently taxes private conventional “Bhutan Transport 2040 Integrated Strategic Vision” vehicles significantly. If these policies were does not portent a wholesale change in policies towards Low to suddenly change, demand for bus private vehicles. The likelihood of such a change is services could suffer. low. However, the Program may need restructuring if any such change did occur.
B.3. Expected project results aligned with the GCF investment criteria (max. 3 pages)
CLIMATE IMPACT POTENTIAL 30. The Program has the potential to impact all of Thimphu’s population (approximately 122,242 people) due to reductions in local emissions, improved mobility, and potential reductions in traffic congestion. Beneficiaries who receive the most direct impacts are likely to be bus users who are projected to undertake approximately 16,153 trips per day in 2020. Table 1, below, summarizes projections relating to the Program’s climate impact potential and overall efficiency of funding based on the World Bank’s preliminary economic assessment. The carbon mitigation potential of the Program by 2020 is approximately 11,782 metric tons per annum which is about 1.94% of Bhutan’s current total carbon emissions per year. The projected modal shift due to the Program would save Bhutan approximately 6.15 million liters of petrol imports in 2020 for the cost of an additional 256,887 liters of imported diesel to (to fuel additional bus kilometers).
Table 1 Summary of climate benefit & efficiency measures Item Value Notes Liters of petrol saved / annum (2020) 6,147,753 Liters of diesel saved / annum (2020) (256,887) Metric tons of carbon saved / annum (2020) 11,782 PV of all investment per annual # of bus trips (2020) $ 7.90 PV of investment per metric tons of carbon abated $ 171.28 PV of all investment per population of Thimphu $ 380.80
PARADIGM SHIFT POTENTIAL 31. Many of the challenges to improving bus services and non-motorized transport in Thimphu are common throughout the South Asia region. Specifically, the combined need for increased physical capacity on the bus network, institutional reforms, stronger service delivery approaches, and infrastructure development is prevalent in cities throughout the region. The proposed project therefore offers opportunities for both demonstration impact and potential replication.
32. Some larger cities in South Asia have sought to develop urban rail services (e.g. Delhi, Mumbai, Bangalore, Colombo, Chennai). However, the majority of urban transport in the region is either non-motorized or bus-based. For example, even in a ‘mega city’ like Dhaka buses account for 30% of trips, cycle rickshaws account for a further 38%, and walking accounts for 20%. In a medium sized city like Kathmandu, bus accounts for 28% of trips with walking accounting for another 40%. Even in more developed cities throughout Latin America and East Asia, bus still plays a critical role along trunk corridors or as feeder system for other modes (e.g. mass rapid transit). What makes modal shares in South Asia particularly interesting is that bus services across throughout the region generally offer very poor quality of service. Similarly, pedestrian infrastructure is underdeveloped in most cities. For example, the Asian Development Bank ranked Kathmandu amongst the least walkable cities in Asia despite the statistics mentioned above.
33. Across South Asia, non-motorized transport and buses are commonly underdeveloped yet predominant in terms of modal share due to very low incomes. This offers governments a key opportunity to achieve development objectives by improving what these modes offer to people who do not use private transport. One objective of this Program is therefore to demonstrate the benefits on offer by avoiding a typical path towards high rates of private vehicle ownership and use so that neighboring governments in the South Asia region begin to see the value of alternative policy approaches.
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SUSTAINABLE DEVELOPMENT POTENTIAL 34. The proposed Program targets beneficiaries by mode of transport which effectively targets poor and other low income segments of Thimphu’s population. The World Bank’s household survey on travel behaviors in Thimphu suggests that 15% of regular bus users come from households with reported incomes below BTN 100,000 per year (US$ 1,500 or approximately US$ 1.03 per capita per day). A further 41% of city bus users come from households with incomes between BTN 100,000 and BTN 200,000 per year (US$ 3,000 per year or US$ 2.06 per capita per day). Affordability of bus services is a key concern for the majority of regular bus users. Roughly 76% of regular bus users who responded to the World Bank’s household survey cited fare affordability as the primary reason that they choose bus over other modes.
35. Improving bus services and non-motorized transport infrastructure in Thimphu also targets women. Few women in Bhutan are licensed drivers. Data from RSTA in 2012/13 suggests that the vast majority of licensed drivers in Bhutan (over 90%) are male. Barriers to accessing bus services are also one reason why women are currently underrepresented in the overall trips that are made within Thimphu based on the World Bank’s household survey on travel behaviors. For example, 62% of male heads-of-household make two or more trips per day. In contrast, only 17% of female heads of household make two trips per day. Reduced trip making is particularly true for women in lower income households whose ability to afford private transport or taxis is limited. Increasing the density of supply of bus services can offer a more attractive, affordable alternative to meet the latent trip demand of Thimphu’s female population.
NEEDS OF RECIPIENT 36. There are few public transport services in the world that cover their cost while also delivering a high quality of service to customers. The Royal Government of Bhutan, like many governments, subsidizes public bus transport explicitly (and with transparency in the budget) as a matter of policy. The Ministry of Finance has informed the World Bank’s team that this policy will continue for the foreseeable future. As of 2015 RGoB subsidies to City Bus Service operating costs totaled approximately US$358,300 which is fiscally affordable considering it represents only .002% of the national expenditure budget for FY14/15. RGoB’s policy aims at providing a mode of travel for those who cannot afford private vehicles and offering a “greener” alternative to private motor vehicle use for motorized segments of the population. The explicit nature of this policy commitment and RGoB’s positive fiscal outlook provide strong security that continued financial subsidies for public transport are sustainable.
37. In contrast, RGoB’s ability to afford upfront capital investments that are required to improve public bus services is limited. Bhutan has recently invested heavily in hydropower development which offers the potential for future fiscal benefits accruing from energy export. However, the massive size of these projects relatively to the Bhutanese economy implies significant macroeconomic challenges over the medium term. The three hydropower projects under construction have together a cost of 190 percent of the country’s GDP (2013). The International Monetary Fund’s Article IV consultation accordingly indicates that Bhutan has a moderate risk of debt distress on account of volatile hydro-related debt repayments. While RGoB has demonstrated a strong commitment to improving urban transport, there is a need to
deploy grant resources in support of this development aim in order to facilitate prudent and sustainable debt management.
COUNTRY OWNERSHIP 38. The proposed Program aligns directly with RGoB’s policy aims as articulated in “Bhutan Transport 2040 Integrated Strategic Vision” which was published in June of 2013. This strategy frames a government-owned way forward for addressing transport sector challenges across various sub-sectors (roads, air, urban transport, etc.). Specifically elements of RGoB’s policy which align with the Program include:
i. Improvement of the traffic engineering and management system, including better use of existing road space, provision of safety enhancements, and revision of traffic circulation; ii. Development of public transport, including identifying measures to boost ridership based on several options, both for the short and long term; iii. Improvement of facilities for pedestrians, including a safe and secure network of routes and priorities within the central area.
39. The transport sector has been identified as a key contributor to Bhutan’s rising emissions as communicated under the United Nations Framework Convention on Climate Change (UNFCCC). In 2003 and again in 2013, Bhutan undertook a Technology Needs Assessment (TNA) for climate change mitigation to identify needs and priorities for deploying climate
PROJECT / PROGRAMME CONCEPT NOTE Template V.2.2 GREEN CLIMATE FUND | PAGE 11 OF 15 technologies within national development objectives. Bhutan’s 2013 TNA includes proposals for Intelligent Transport Systems and some form of dedicated right-of way public transport solution that would be accompanied by improvements in non-motorized transport. These proposals align with Bhutan’s national development plans. Specifically, outcome #1 for Bhutan’s 11th Five Year Plan seeks to enhance “access to adequate, sustainable and inclusive public transport”. Furthermore, Bhutan’s overall national goal for the 11th Plan, specifically “Self-reliance and Inclusive Green Socio-
Economic Development”
EFFECTIVENESS & EFFICIENCY 40. The World Bank has conducted an initial economic assessment of the proposed Program over a 20 year time horizon that considered: (i) time savings; (ii) fuel savings; and (iii) carbon savings. This analysis included the additional costs of rolling stock renewal in approximately 10 years but did not endeavor to estimate avoided private or taxi vehicle purchase or accident reductions due to uncertainties around appraisal assumptions. Results suggest that the project would yield an Economic Net Present Value of US$ 19.0 million at a 6% discount rate with an Economic Rate of Return of 13.0%. Table 2 below contains a summary of the costs and economic benefits of the proposed Program. Table 1 contains a summary of efficiency measures for investment relative to beneficiaries, emissions reductions and other factors.
Table 2 Summary of economic analysis
Net Present Value of % of NPV of % of NPV of Present value of benefit (cost) costs / benefits [US$] benefits costs Fuel Savings $62,220,246 92% Emissions Savings $5,104,719 8% Time Savings ($1,775,365) 4% Capital investment ($43,328,487) 89% Operational & other expenses ($3,220,754) 7% NPV of project @6% discount $19,000,358 IRR of project 13.0%
B.4. Engagement among the NDA, AE, and/or other relevant stakeholders in the country (max ½ page) 41. The Royal Government of Bhutan has taken measures to coordinate the action of different stakeholders in urban transport. Most recently, this has included the establishment of a multi-sectoral taskforce via Executive Order C2/172 dated January 5th, 2016. The Task Force’s mandate is to study and come up with immediate measures to ease the traffic situation in Thimphu, under the coordination of the Ministry of Information and Communication. Stakeholders within the donor community is also coordinating interventions relating to urban transport via cross-reviews of proposed project concepts and regular communications during preparation and supervision missions.
▪ National Environment Commission (NEC): NEC leads the national level climate change actions, including monitoring and reporting of GHGs. Also, leading formulation of vehicle emission roadmap and low carbon transport strategy. ▪ Ministry of Information and Communications: is the coordinating ministry for national policies relating to urban transport. MOIC is the designated chair of RGoB’s Task Force. ▪ Gross National Happiness Commission (GCF NDA) is RGoB’s counterparty for all foreign grant assistance and also Bhutan’s National Designated Authority for the GCF. ▪ Ministry of Finance: is RGoB’s designated counterparty for all foreign loan / credit assistance and also manages the national budget system, the pool of government vehicles, and the development of revenue generating policies and vehicle taxation regimes. ▪ Thimphu Thromde: has authority under Local Government Act of 2009 and the Thromde Act of 2007 to manage land use in Thimphu and to develop urban transport services. ▪ Road Safety and Transport Authority (RSTA): is mandated under the Road Safety & Transport Act (1999) to approve public transport routes, manage fares, and regulate vehicle standards. RSTA will also serve as the lead agency for the proposed Public Service Agreement for strengthening the governance of public transport services in Thimphu.
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▪ Bhutan Postal Corporation (including City Bus Service) Bhutan Post owns and operates the City Bus Service will have the lead role in managing preparation activities relating to the City Bus Depot. City Bus Service will provide operating inputs to preparation activities concerning bus terminals, electric buses, and the proposed BRT. ▪ Royal Bhutan Police (Traffic): The Royal Bhutan Police handle traffic enforcement and have jurisdiction for enforcement on the City Bus Service. The Royal Bhutan Police will provide inputs to MOIC relating to enforcement issues.
42. The World Bank, the accredited entity, will act as a manager of the GCF fund. The World Bank is accountable directly to the GCF Board for the overall management, as well as for the financial, monitoring and reporting aspects of activities. In particular, the WB will lead Component A: investments in Green Transport Infrastructure aspects in cooperation with Thimphu Thromde and will also lead on Component B: investments in Green Public Transport operating assets and Component C: technical assistance and institutional development in cooperation with MOIC, Thimphu Thromde and City Bus Service.
43. Green Technology Center (GTC) is the Executive Entity (EE) that supports a range of activities geared towards achieving the activities. GTC will provide technical assistance to the RGoB’s Task Force during implementing the program, in particular supporting Component B: investments in Green Public Transport operating assets and Component C: technical assistance and institutional development.
C. Indicative Financing/Cost Information (max. 3 pages) C.1. Financing by components (max ½ page) Please provide an estimate of the total cost per component/output and disaggregate by source of financing. Component/Outp Indicative cost GCF financing Co-financing/Parallel Financing* ut (USD) Amount Financial Amount Financial Name of (USD) Instrument (USD) Instrument Institutions Green Transport 36,772,500 18,972,000 15,760,500 World Bank Infrastructure RGoB* Private* UNDP* Green Public 10,256,773 4,242,500 6,014,273 World Bank Transport RGoB* operating assets UNDP* Technical 2,752,800 - 2,752,800 World Bank assistance and UNDP* institutional development Indicative total 49,782,073 23,214,500 24,527,573 cost (USD)
44. The Recipient shall execute a Public Service Agreements, satisfactory to the Association, between the Ministry of Finance, Thimphu Thromde, and the City Bus Service. The Pubic Service Contract will include: (i) defined obligations and rights for each entity relating to the provision of bus services; (ii) performance metrics and targets for the City Bus Company; (iii) a methodology for allocating capital and operating subsidies to the City Bus Company from the Ministry of Finance; and (iv) an agreed framework for governing City Bus Services.
45. The Ministry of Finance will make annual budgetary allocations available to Thimphu Thromde and the City Bus Services for the maintenance of capital works developed under the Program. This will include an amount adequate to support routine cleaning and upkeep in addition to periodic repairs of a capital nature. The Recipient, through the Ministry of Information and Communications, shall within 1 year of the Program’s Effective Date produce a multi-year investment plan, satisfactory to the Association, for enhancements and renewals to pedestrian infrastructure and bus-service related assets.
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* Note 1: “Effective date” is the date on which the legal agreement with IDA comes into force. * Note 2: “the Association” means the International Development Association which will be the World Bank’s managing entity for the proposed GPOBA grant.
46. The Recipient shall adopt a Program Operations Manual, satisfactory to the Association, to guide the role of all parties in Program Implementation. C.2. Justification of GCF funding request (max. 1 page) 47. Bhutan’s fiscal position and borrowing capacity is constrained due to high rates of investment in renewable hydroelectricity projects. This would otherwise limit the RGoB’s ability to invest in Thimphu’s public bus services and non- motorized transport infrastructure. GCF contribution to the Program is critical to addressing these constraints. Specifically, GCF funds allow for the following: (i) accelerated transition to zero-emission performance buses and bus priority measures along Thimphu’s main transport corridor; and (ii) large scale contemporaneous investments in non- motorized transport access. The ability of RGoB to hold back motorization and increased private vehicle use in the presence of rising incomes is limited without higher quality alternatives. There is a strong case to accelerate Thimphu’s transition to more sustainable modes of transport before households become effectively “locked in” to other transport modes as they look to meet their mobility needs. The delay that would otherwise result from not receiving GCF support may reduce the effectiveness of future investments aimed at getting households to switch back to more sustainable forms of transport.
48. The Program envisages that GCF support would entail “one time” grants to fund capital investments. RGoB’s medium term fiscal position is positive and able to support operations / maintenance of these assets. However, upfront costs are greater than what RGoB could finance while providing for prudent debt management. GCF would exit the Program after its initial asset development phase according to the proposed approach.
Justification #1: Meeting Bhutan’s international climate commitments amidst fiscal constraints 49. Bhutan has made a commitment to the international community to remain carbon neutral while also advancing from its status as a Least Developed Country. To meet its commitment, Bhutan has invested heavily in renewable energy and specifically hydropower generation. Hydropower related debt currently amounts to approximately 190% of one year’s GDP for Bhutan. Bhutan’s fiscal capacity is accordingly limited and efforts to reduce GHG emission in other areas would otherwise not be possible without international support. The GCF’s contribution can support Bhutan to meet its international commitments.
Justification #2: Bhutan can sustain environmentally beneficial investments once they are made 50. Bhutan’s capacity to directly fund upfront capital investments in urban transport systems is limited and RGoB is accordingly seeking grant and concessional support from the international community. However, RGoB has shown willingness and capacity to cover the cost of sustainable service delivery to customers. The Royal Government of Bhutan, like many governments, subsidizes public bus transport explicitly (and with transparency in the budget) as a matter of policy. The Ministry of Finance has informed the World Bank’s team that this policy will continue. As of 2015 RGoB subsidies to City Bus Service operating costs totaled approximately US$358,300 which is fiscally affordable considering it represents only .002% of the national expenditure budget for FY14/15. Similarly, Bhutan has historically self-funded the purchase of buses to renew the City Bus fleet as aging buses have retired or relegated to less intensive use. The explicit nature of this policy commitment and RGoB’s positive fiscal outlook with respect to funding operating costs provide strong security that continued financial subsidies for the operation of public transport services are sustainable.
Justification #3: Bhutan’s governance and size are an advantage for GCF demonstration 51. Bhutan’s size and the stability of its governance environment are also key advantages for the proposed GCF intervention. Specifically, Bhutan’s Governance indicators are among the best in South Asia and well above the average for IDA-eligible countries and low income countries in general (see below). This enhances the chances of success for the critical institutional requirements of improving transport services. Similarly, the scale of Bhutan’s capital city of Thimphu makes it possible for moderately sized investments to have large impacts with clearly attributable cause and effect. The World Bank’s experience of urban transport interventions in larger South Asian cities illustrate the difficulties of linking cause and effect amidst the scale of exogenous influences in addition to the inherent challenges of working with larger and more numerous institutions. In contrast, GCF support can enable Bhutan to serve as an example for a different
PROJECT / PROGRAMME CONCEPT NOTE Template V.2.2 GREEN CLIMATE FUND | PAGE 14 OF 15 path in South Asia – one that puts people, their environment, and the overall quality of life ahead of private vehicles. This model would demonstrate a sustainable development path in a region where the impacts of rising incomes and private vehicle use have significantly degraded the urban environment and contributed to global climate change.
Figure 3 Selected governance indicators for Bhutan
Source: World Development Indicators - Country Policy and Institutional Assessment (CPIA)
C.3. Sustainability and replicability of the project (exit strategy) (max. 1 page) 52. The Public Service Agreement that will accompany Program implementation frames a sustainable institutional approach for the management of public bus services in Thimphu. The World Bank has supported MOIC to draft an initial PSA which the project will use. Over the medium term future is unlikely that public bus services in Thimphu would cover the entirety of their operating costs which implies that some form of continuing subsidy will be required. The current and projected magnitude of these subsidies is well within RGoB’s fiscal capacity. However, the World Bank’s proposed technical assistance that would accompany Program investments would also provide advice to RGoB on approaches for reducing the fiscal impact of operating subsidies to City Bus Services in order to further enhance sustainability. For example, this could include additional taxation policies relating to fuel or private vehicles.
D. Supporting documents submitted (OPTIONAL) ☐ Map indicating the location of the project/programme ☐ Diagram of the theory of change ☐ Economic and financial model with key assumptions and potential stressed scenarios ☐ Pre-feasibility study ☐ Evaluation report of previous project ☐ Results of environmental and social risk screening
Self-awareness check boxes Are you aware that the full Funding Proposal and Annexes will require these documents? Yes ☒ No ☐
• Feasibility Study • Environmental and social impact assessment or environmental and social management framework • Stakeholder consultations at national and project level implementation including with indigenous people if relevant • Gender assessment and action plan • Operations and maintenance plan if relevant • Loan or grant operation manual as appropriate
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• Co-financing commitment letters
Are you aware that a funding proposal from an accredited entity without a signed AMA will be reviewed but not sent to the Board for consideration? Yes ☒ No ☐