Project Readiness Financing: Project Administration Manual

Livable Cities Investment Program (PRF GEO 53118-002)

Project Readiness Financing Project Administration Manual

Project Number: 53118-002 Loan Number: PRFXXXX November 2019

Georgia: Project Readiness Financing for Livable Cities Investment Program

CONTENTS

IMPLEMENTATION PLAN 1 A. Overall Implementation Plan 1 PROJECT IMPLEMENTATION ARRANGEMENTS: ROLES AND RESPONSIBILITIES 4 A. Key Persons Involved in Implementation 6 COSTS AND FINANCING 7 A. Key Assumptions 7 B. Detailed Cost Estimates by Expenditure Category and Financier 8 C. Detailed Cost Estimates by Year 8 D. Contract and Disbursement S-Curve 9 FINANCIAL MANAGEMENT 10 A. Financial Management Assessment 10 B. Public Financial Management 10 C. Assessment Findings 11 D. Financial Management Risk Assessment 11 E. Strengths and Weaknesses 20 F. Proposed Timebound Action Plan 20 G. Disbursement 21 H. Accounting 24 I. Auditing and Public Disclosure 25 PROCUREMENT AND CONSULTING SERVICES 26 A. Advance Contracting and Retroactive Financing 26 B. Procurement of Consulting Services 26 C. Procurement Plan 28 D. Consultant's Terms of Reference (TOR) 31 SAFEGUARDS 32 PERFORMANCE MONITORING 33 A. Monitoring 33 B. Reporting 33 ANTICORRUPTION POLICY 33 ACCOUNTABILITY MECHANISM 34 RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 34

Project Administration Manual for Project Readiness Financing: Purpose and Process

The project administration manual (PAM) for the project readiness financing (PRF) is an abridged version of the regular PAM of the Asian Development Bank (ADB) and describes the essential administrative and management requirements to implement the PRF following the policies and procedures of the government and ADB. The PAM should include references to all available templates and instructions either by linking to relevant URLs or directly incorporating them in the PAM.

The Ministry of Regional Development and Infrastructure (MRDI) and Tbilisi City Hall (Municipality) (TCH) as executing agencies (EAs) and Municipal Development Fund (MDF), Roads Department (RD), United Water Supply Company of Georgia (UWSCG), and Tbilisi Development Fund (TDF) as implementing agencies (IAs) are wholly responsible for the implementation of ADB-financed PRF activities, as agreed between the borrower and ADB, and following the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation compliance by EAs and IAs of their obligations and responsibilities for PRF implementation following ADB’s policies and procedures.

In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the PRF loan agreement will prevail.

After ADB’s approval of the PRF proposal, changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in this PAM.

ABBREVIATIONS

ADB – Asian Development Bank AEFS – audited entity financial statement APFS – audited project financial statement BOQ – bill of quantities DED – detailed engineering design EA – executing agency GOG – Government of Georgia IA – implementing agency IEE – initial environmental examination MDF – Municipal Development Fund MOF – Ministry of Finance MRDI – Ministry of Regional Development and Infrastructure PAM – project administration manual PCR – project completion report PFM – public financial management PFMIS – public financial management information system PRF – project readiness financing RD – Roads Department SOE – statement of expenditure TCH – Tbilisi City Hall TDF – Tbilisi Development Fund TOR – terms of reference UWSCG – United Water Supply Company of Georgia

IMPLEMENTATION PLAN

A. Overall Implementation Plan

The overall implementation period is 5 years, from 2019 to 2024. Table 1 presents the overall implementation plan for the PRF and records key implementation activities, including project management activities (on quarterly basis). It will be updated annually and submitted to Asian Development Bank (ADB) with updated contract and disbursement projections.

The reporting requirements include quarterly progress reporting, audited project financial statements (APFS), and audited entity financial statements (AEFS). The project completion report (PCR) is expected within a year of closure of the project.

Table 1: Implementation Plan Activities 2019 2020 2021 2022 2023 2024 Month/Quarters 10 11 12 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 A. Implementation Consultant selection under PRF Advertisement Selection Contract award Mobilization Outputs Tranche 1 Components Feasibility Study (FS) and Detailed Engineering Design (DED) Bidding Documents including social safeguards documents Tranche 2 Components FS and DED Bidding Documents including social safeguards documents Tranche 3 Components FS and DED Bidding Documents including social safeguards documents Institutional Development including SMEs Tranche 4 Components FS and DED Bidding Documents including social safeguards documents Tranche 1– Individual Consultants Urban Management Partnership Institutional Development Procurement Services Advertisement

Activities 2019 2020 2021 2022 2023 2024 Month/Quarters 10 11 12 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Selection Contract award Delivery of outputs B. Management Activities PRF negotiations ADB management approval PRF Signing Quarterly progress report Submission of APFS Projected date of ensuing loan EA/IA submission of PCR of PRF ADB = Asian Development Bank, APFS = audited project financial statement, DED = detailed engineering design, EA = executing agency, IA = implementing agency, PCR = project completion report, PRF = project readiness financing.

PROJECT IMPLEMENTATION ARRANGEMENTS: ROLES AND RESPONSIBILITIES

Management Roles and Responsibilities’ A. Executing Agency 1. Ministry for Regional • Provide strategic guidance on and overseeing the (i) Development and implementation of the PRF subprojects, (ii) resolution of Infrastructure (MRDI) issues, if any, and (iii) project design. • Review PRF project progress performance under implementation of MDF, RD, and UWSCG. 2. Tbilisi City Hall • Provide strategic guidance to TDF, including overseeing the implementation of the PRF subprojects. • Review PRF project progress performance under implementation of TDF.

B. Implementing Agencies 1. Municipal Development Fund Urban Redevelopment and Tourism Infrastructure: MDF is (MDF) responsible for implementation of projects assigned to MDF, including but not limited to the following • Oversight of consulting services for detailed engineering design and preparation activities for urban tourism, transport and secondary/municipal roads components. • Provide dedicated staff to facilitate project implementation and management. • Preparation of annual budget estimates for government counterpart fund allocation. • Procurement of services, including contract signing and management; • Ensure compliance with safeguards requirements, if required. • Responsible for opening and managing the advance account, if needed. • Prepare and submit withdrawal applications to ADB. • Submit audited project financial statements for each fiscal year covering PRF implementation period. • Prepare and review procurement plans, and contract awards and disbursements projections, as needed. • Submit quarterly progress reports to ADB. • Organize and carry-out capacity building activities, as needed. • Coordinate among government agencies. • Ensure that projects implemented by MDF; particularly consultant selection, procurement actions, contract signing and management, financial management, project administration, and reporting are conducted in accordance with ADB guidelines and Government of Georgia legislation. 2. Roads Department (RD) • Oversight of consulting services relating to roads management in terms of review of detailed engineering design, contract packages and procurement related services by the consultants. • Make at least quarterly presentation and seek advice from PSC on the feasibility and design of subprojects. • Responsible for opening and managing the project’s sub- advance account. • Manage fund flow towards RD managed components under the project. 3. United Water Supply • Oversight of consulting services relating to water supply, Company of Georgia sanitation and wastewater management in terms of review of (UWSCG) detailed engineering design, contract packages and

Management Roles and Responsibilities’ procurement related services by the consultants. Make periodic presentation and seek advice from PSC on the subproject concepts and the design. • Make at least quarterly presentation and seek advice from project steering committee (PSC) on the feasibility and design of subprojects. • Responsible for opening and managing the project’s sub- advance account. • Manage fund flow towards UWSCG managed components under the project. • Prepare and submit withdrawal applications to ADB. • Submit audited project and entity financial statements for each fiscal year covering PRF implementation period. • Prepare and review procurement plans, and contract awards and disbursements projections, as needed. • Submit quarterly progress reports to ADB. • Organize and carry-out capacity building activities, as needed. • Coordinate among government agencies.

4. Tbilisi Development Fund TDF is responsible for all the projects for Tbilisi City including: (TDF) • manage tasks as assigned under the project components for Tbilisi city. • provide dedicated staff to manage separate project financial records and accounts. • Prepare and submit withdrawal applications to ADB. • Submit audited project and entity financial statements for each fiscal year covering PRF implementation period. • Prepare and review procurement plans, and contract awards and disbursements projections, as needed. • make at least quarterly presentation and seek advise from PSC on the feasibility of subprojects and the review of detailed engineering design. • sign all contracts under the project pertaining to components assigned as per consulting services TOR. C. Asian Development Bank • Assist TCH and TDF in procurement of consultants for the project. • Provide guidance to EAs and IAs on implementation issues and project design. • Conduct periodic review of the projects ADB = Asian Development Bank, MDF = Municipal Development Fund, MRDI = Ministry of Regional Development and Infrastructure, PRF = project readiness financing, PSC = Project Steering Committee, RD = Roads Department, TCH = Tbilisi City Hall, TDF = Tbilisi Development Fund, TOR = terms of reference, UWSCG = United Water Supply Company of Georgia. Source: Asian Development Bank.

A. Key Persons Involved in Implementation

Executing Agency Ministry of Regional Development Officer's Name: Mzia Giorgobiani and Infrastructure E-mail address: [email protected] Office Address: Al.Kazbegi Ave. 12; Tbilisi, Georgia

Executing Agency Tbilisi City Hall Officer's Name: Maia Bitadze Position: Deputy Mayor Telephone: +995 272 22 22 E-mail address: [email protected] Office Address: 7 Shartava Street, Tbilisi, Georgia Asian Development Bank Urban Development and Staff Name: Yong Ye Water Division Position: Director, CWUW Central and West Asia Telephone No.: +63 2 632 6346 Department E-mail address: [email protected]

Staff Name: Ramola Naik Singru Position: Senior Urban Development Specialist Telephone No.: +63 2 632 4352 E-mail address: [email protected]

COSTS AND FINANCING

A. Key Assumptions

The following key assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: USD is used in cost estimates As of 1 August 2019, €1 = $1.107; Georgian lari (GEL) 2.96 = $1.00 (ii) Price contingencies based on expected cumulative inflation over the implementation period are as follows:

Table 2: Escalation Rates for Price Contingency Calculation 2019 2020 2021 2022 2023 2024 Average Foreign rate of price inflation 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% Domestic rate of price inflation 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Source: Asian Development Bank

B. Allocation and Withdrawal of Loan Proceeds

Number Category Total Amount Allocated for Basis for Withdrawal ADB Financing from the Loan Account 1 Consulting Services for 100% of total expenditure FSEDPS, ICBIMUIS, and ,270,000 ($13,550,000) €12 claimed* Audit 2 Interest during 50,000 ($55,350) 100% of total amount due implementation € 3 Unallocated €1,230,000 ($1,361,760) FSEDPS = feasibility study, engineering, design and procurement support; ICBIMUIS = institutional capacity building for implementing and managing urban infrastructure and services. * excluding taxes and duties imposed within the territory of Borrower. Source: Asian Development Bank.

B. Detailed Cost Estimates by Expenditure Category and Financier

Table 3: Detailed Cost Estimates by Expenditure Category and Financier (€ million) ADB Loan GOG Total Costa % of % of Taxes Cost Cost and Item Amount Category Amount Category Amount Duties A. Consulting Services 1. Feasibility study, detailed engineering design and procurement support 10.35 82% 2. .28 18% 12.63 2.28 2. Institutional capacity building for implementing and managing urban 1.92 82% 0.42 18% 2.34 0.42 infrastructure and services. Subtotal (A) 12.27 82% 2.70 18% 14.97 2.70 Total Base Cost (A) 12.27 82% 2.70 18% 14.97 2.70 B. Contingenciesb 1.23 82% 0.27 18% 1.50 0.27 C. Financial Charges During Implementation 0.05 100% 0.00 0% 0.05 0.00 Total Project Cost (A+B+C) 13.55 82% 2.97 18% 16.52 2.97 % Total Project Cost 82% 18% 100.00 a Numbers may not sum-up due to rounding. b Price contingencies are computed at 10%. Includes interest charges. Interest during PRF for the ADB loan has been computed at the Euro 5-year fixed swap rate plus a spread of 0.5%. Source: Asian Development Bank.

C. Detailed Cost Estimates by Year

Table 4: Detailed Cost Estimates by Year (€ million) Item Total Cost 2020 2021 2022 2023 2024 A. Consultant costs 1. Feasibility study, detailed engineering 12.63 2.52 2.52 2.52 2.52 2.52 design and procurement support 2. Institutional capacity building for 2.34 0.47 0.47 0.47 0.47 0.47 implementing and managing urban infrastructure and services. Subtotal (A) 14.97 2.99 2.99 2.99 2.99 2.99 Total Base Cost (A) 14.97 2.99 2.99 2.99 2.99 2.99 B. Contingencies 1.50 0.10 0.21 0.30 0.40 0.49 C. Financial Charges During Implementation 0.05 0.00 0.01 0.01 0.02 0.02 Total Project Cost (A+B+C) 16.52 3.09 3.21 3.31 3.41 3.50 % Total Project Cost 100% 19% 19% 20% 21% 21% Numbers may not sum-up due to rounding. Source: Asian Development Bank.

D. Contract and Disbursement S-Curve

Contract Awards (in US$ million) Disbursements (in US$ million) Year Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 2019 0.00 0.00 0.00 3.00 3.00 0.00 0.00 0.00 0.15 0.15 2020 0.00 5.00 0.00 3.90 8.90 0.40 1.00 1.00 2.00 4.40 2021 0.00 0.00 0.00 0.00 2.00 0.45 1.00 1.00 1.00 3.45 2022 0.00 3.00 0.00 0.00 3.00 0.50 0.75 0.75 1.00 3.00 2023 0.00 0.00 0.00 0.00 0.00 0.50 0.50 1.00 0.75 2.75 2024 0.00 0.00 0.00 0.00 0.00 0.50 0.50 0.25 0.00 1.25 Total Contract Awards 14.90 Total Disbursements 15.00

OCR S-Curve ADB Loan Curve 15.0

12.0

9.0

6.0

3.0

0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2024

Contract Awards Disbursement

FINANCIAL MANAGEMENT

A. Financial Management Assessment

A financial management assessment (FMA) was conducted in July 2019, in accordance with ADB’s guidelines for the Financial Management and Analysis of Projects (2005), the Financial Due Diligence: A Methodology Note (2009), and the Financial Management Technical Guidance Note (2015).1 The FMA assessed the capacity of the executing agencies (EAs)—Ministry of Regional Development and Infrastructure of Georgia (MRDI) and Tbilisi City Hall (TCH), and four implementing agencies (IAs)—Municipal Development Fund (MDF), United Water Supply Company of Georgia (UWSCG), Roads Department of Georgia (RD), and Tbilisi Development Fund (TDF), including funds-flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external arrangements. Based on the assessment, the key financial management risks identified are: a) shortage of staffing for the project in each of the IAs; and b) delays of external audits. It is concluded that the overall pre mitigation financial management risk of the TCH and four IAs is substantial. MRDI, UWSCG, RD, and MDF have experience managing loan funds from ADB in the past. TCH and TDF are new EA and IA and will require ADB trainings on disbursement policy and procedures. The Ministry of Finance of Georgia (MOF), two EAs and four IAs have agreed to implement an action plan as key measures to address any deficiencies. The financial management action plan is illustrated in Table 6. With the mitigation measures in place, it is expected that the six agencies MRDI, TCH, MDF, UWSCG, RD, and TDF will be able to administer the advance fund and Statement of Expenditure (SOE) procedures manage loan funds of the project readiness financing (PRF) and the counterpart funds.

B. Public Financial Management

The FMA concluded that in general, the officers and staff of all the EAs and IAs have adequate knowledge and skills in project management, and financial management. The financial policies and procedures monitored through the external auditors of EAs and IAs were deemed sufficiently appropriate for the financial management of the project. The finance and accounting department of the EAs and IAs are adequately staffed for the present level of operations. Additional staff will be needed for the project—one each in TCH, MDF, UWSCG and TDF. Consultants are currently fulfilling the staffing requirement for ongoing ADB projects. Project accounting staff in TCH and the IAs will need adequate training in ADB disbursement procedures and preparation of financial reports.

Accounting system in EAs and IAs allow for adequate recording of financial transactions, strictly adhering to national decrees. Within the accounting office of EAs and IAs, functional responsibilities are allocated. The functions of ordering, receiving, accounting for and paying for goods and services are also allocated within the limitation of the small number of personnel. Cost allocations are accurate and consistent with established agreements. Ledgers, both general and subsidiary are reconciled monthly, and action is taken to resolve differences. Documents are stored on site for up to 5 years, after which they are archived and readily accessible. Authorized signatories are defined in each of EAs and IAs. Controls are in place for USB keys and passwords, official receipts and invoices. Measures are in place to protect assets from abuse, fraud, and misuse.

C. Assessment Findings

There is no internal audit in MDF, however this function is integrated under the MRDI quality monitoring department. Internal audit is done in EAs and other IAs. Internal audit findings are acted upon and resolved. Internal audit staff needs training on ADB procedures. External entity audit is performed by State Audit Office (Chamber of Accounts) in case of MRDI, UWSCG, RD, and TCH. Independent private auditor is engaged for external audit in case of MDF, UWSCG, and TDF.2 There are backlogs in entity external audit in case of UWSCG. Steps have been taken to clear any backlogs in entity external audit. In case of ongoing ADB funded projects, generally there have been no delays in the submission of APFS to ADB.

The overall pre-mitigation financial management risk rating of all the EAs and IAs remains moderate. However, this rating is expected to be reduced to low after induction of additional staff in each of EAs and IAs and sufficient training and experience has been acquired by the staff. The moderate financial management risk is because a) additional staff requirement for the project in TCH and IAs; b) these staff are yet to receive training on ADB’s disbursement policies and procedures; and c) delays in external audits of entity by UWSCG. The suggested mitigation measures are as follows:

(i) strengthening the finance and accounts sections of EAs and IAs by engaging additional staff as required—one staff each in TCH, UWSCG, , and TDF for the timely preparation of withdrawal applications, and APFS; (ii) extending sufficient training and capacity building support to enhance the financial management capacity of EAs and IAs; (iii) implementing internal audit in MDF to cover the PRF project; and (iv) Annual audit of APFS of PRF to be ensured by all EAs and IAs.

D. Financial Management Risk Assessment

The financial management and internal control risk assessment conducted for each of the EAs and IAs is summarized in Table 5 below.

Table 5: Financial Management Internal Control and Risk Assessment Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures Ministry of Regional Development and Infrastructure Executing Agency Low MRDI, a ministry of Government of Not applicable Georgia, has, through MDF, UWSCG, the requisite experience having supervised externally funded projects including those of World Bank, European Bank of Reconstruction (EBRD), Kreditanstalt fur Wiederaufbau (KfW), European Development Bank (EIB), and Asian Development Bank. MRDI will be one of the Executive Agency (EA) for the PRF and will have three implementing agencies – a) MDF b) RD and c) UWSCG under it. MRDI will ensure that the IAs comply

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures with the requirements of the loan and project agreements for timely implementation of project. Funds Flow Low Has been managing ADB loan funds in Not applicable ongoing projects of MDF, RD and UWSCG. Each IA will have special account in Treasury for loan where it will transfer counterpart funds from Ministry (MOF). ADB share will be either directly paid to the consultants or through the IA’s advance account. Staffing Moderate The MRDI staff performing financial management functions may need updated knowledge and understanding of ADB’s new procurement framework, disbursement policies and procedures. Accounting Policies Low National accounting system, based on Not applicable and Procedures international accounting and reporting standards, IPSAS or IFRS accrual based as applicable, is followed. Budgeting Low Uniform Budget code has been Not applicable implemented successfully at national level including MRDI. Payments Low Present system provides adequate Not applicable platform for making payments under the Project. Ongoing projects, under implementation by MDF and UWSCG, there have been no issues or delays relating to payments. Internal audit Low Internal audit is performed annually, and they are monitored by the Center for Harmonization Unit at the Ministry of Finance. External audit Delays in external Government of Georgia to expedite the Delays in external audit at entity level external audit at entity level for for UWSCG. audit at entity level. UWSCG. Reporting and Low Entity reporting system will be adapted Not applicable. Monitoring. for project reporting. Financial reports are prepared mainly based on spreadsheets as well as by the automated accounting system. Management Low Entity information system, fully Not applicable. Information computerized, will be adapted for the systems project as well. Combined Moderate The overall financial management Additional training in Risk Rating risk rating of MRDI remains ADB disbursement Moderate. and reporting procedures, and external audit of project APFS. Tbilisi City Hall

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures Tbilisi City Hall Low TCH, a sub national entity and has Not applicable Executing Agency adequate autonomy, the requisite experience having executed / supervised externally funded projects of European Union. TCH will be one of the Executive Agency (EA) for the PRF and will have one implementing agency – Tbilisi Development Fund (TDF). TCH, inter alia, will be responsible for preparation of consolidated (for TCH and TDF) withdrawal applications and replenishment claims and consolidated (for TCH and TDF) PRF annual financial statements for submission to ADB. Funds Flow Moderate Has been managing EU loan as well as Training in ADB select bilateral funds in ongoing procedures will be projects. required TCH will have special account in Treasury for loan where it will transfer counterpart funds from Ministry (MOF) and then from this account money will be transferred to consultants. ADB share mainly is transferred directly from treasury account to consultant. Staffing Substantial The TCH staff performing financial Engage additional management functions are not staff – one staff in adequate and lack training and have finance and accounts insufficient knowledge and department. in understanding of ADB’s disbursement addition, arrange policies and procedures. training of staff on ADB’s procurement and disbursement processes. Accounting Policies Low Accounting system software ERTIGONI Not applicable and Procedures is followed by TCH, based on international accounting and reporting standards, is followed. Budgeting Low Uniform Budget code has been Not applicable implemented successfully at national level including TCH. Payments Low Present system provides adequate Not applicable platform for making payments under the Project. Internal audit Moderate Internal audit is conducted by the Training in ADB internal audit department. Reports are procedures will be presented to Mayor and audit required for IA staff recommendations are acted upon. External audit Substantial Delays in external audit at entity level. For the project Audit is completed up to FY 2016. implementation period from 2020-2024, the

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures project will fund the external audits of the project statements for TDF under TCH to be able to comply with ADB’s audit requirements. Reporting and Moderate Entity reporting system will be adapted Not applicable. Monitoring. for project reporting. Financial reports are prepared mainly based on spreadsheets as well as by the automated accounting system. Delays in financial statements reporting are there. Management Moderate Entity information system, fully Not applicable. Information computerized, will be adapted for the systems project as well. Combined Risk Substantial The overall financial management risk Induction of two Rating rating of TCH remains Substantial but is additional staff, expected to be reduced to Moderate training in ADB after induction of additional staff and disbursement and sufficient training and experience has reporting procedures been acquired by its accounting staff. and external audit of project APFS and entity APFS. Municipal Development Fund Implementing Entity Low This implementing agency (IA) will Not applicable function under MRDI (one of the executive agency for PRF). This is development fund is a legal entity of public law

MDF has the requisite experience having implemented externally funded projects of including those of World Bank, European Bank of Reconstruction (EBRD), Kreditanstalt fur Wiederaufbau (KfW), European Development Bank (EIB), and Asian Development Bank. Funds Flow Low Has been managing ongoing Not applicable projects, ADB as well as other external funding agencies’, loan funds.

MDF will receive the funds into Advance account opened in the treasury of MOF both for the loan and counterpart funds. Transfers will be made by MDF to the consultants. Staffing Moderate The finance function of MDF is Arrange training of carried out within the Financial staff on ADB’s Management and Investment Unit procurement and (FMIU) with 15 staff as follows: (i)

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures Head of the Unit; (ii) 1 budgeting disbursement specialist; (iii) 2 financial and processes. economic analysts; and (iv) 11 accountants. To support the unit with disbursement functions and to strengthen the FM the additional external FM and reporting Consultant was hired recently. One additional staff will be required for the management of PRF and for documentation. Additional Staff to be inducted will need training on ADB procedures and requirements to improve operational efficiencies. Accounting Policies Low Accounting is based on international Not applicable and Procedures accounting standards and follows an accrual accounting system. MDF uses commercial, accrual accounting, has a standard chart of accounts, and reports according to International Financial Reporting Standards (IFRS). Budgeting Low Capital planning, and budget Not applicable preparation and co-ordination is carried out by the Financial Manager and based on national budgeting guidelines. Payments Low Present system provides adequate Not applicable platform for making payments under the Project. Internal audit Moderate To avoid duplication of functions the Ensure timely audit. internal audit department of MDF was restructured into the Quality Monitoring department under MRDI. External audit Moderate For ongoing projects entity audits are Government of completed up to FY 2018. Georgia to expedite the external audit at entity level.

For the project implementation period from 2020-2024, the project will fund the external audits of the project statements to be able to comply with ADB’s audit requirements. Arrangements will be made by the MDF for the annual external audits of the project financial statements and the entity financial statements.

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures Reporting and Low Entity reporting system will be adapted Not applicable. Monitoring. for project reporting. Financial reports are prepared mainly based on spreadsheets as well as by the automated accounting system. Management Low Entity information system, fully Not applicable. Information computerized, will be adapted for the systems project as well. Combined Moderate The overall financial management Induction of one Risk Rating risk rating of MDF remains Moderate additional staff, but is expected to be reduced to Low training in ADB after disbursement and induction of additional staff, internal reporting procedures, audit at project level and sufficient internal audit at project training and experience has been level and external acquired by its additional accounting audit of project APFS staff. and entity APFS. Roads Department Implementing Low This implementing agency (IA) will Not applicable Entity function under MRDI (one of the executive agency for PRF).

This is an entity under MRDI.

RD has the requisite experience having implemented externally funded projects of including those of World Bank and Asian Development Bank. For financial management of these projects a temporary organization Eurasian Transport Corridor Investment Centre (ETCIC) was created.

For the proposed PRF and project, RD’s will manage on its’ own. Funds Flow Low ETCIC been managing ongoing Not applicable projects, ADB as well as other external funding agencies’, loan funds.

For this PRF, RD will receive the funds into Advance account opened in the treasury of MOF both for the loan and counterpart funds. Transfers will be made by RD to the consultants from this account or directly by ADB. Staffing Low The finance function of RD is carried out Ensure adequate staff within the Finance and accounts allocation for the section. project. Accounting Policies Low National accounting system, based on Not applicable and Procedures international accounting and reporting

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures standards IPSAS, accrual accounting is followed. Budgeting Low Uniform Budget code has been Not applicable. implemented successfully at national level including RD. Payments Low Present system provides adequate Not applicable. platform for making payments under the Project. Internal audit Low Internal audit is performed annually, and they are monitored by the Center for Harmonization Unit at the Ministry of Finance. External audit Moderate Delays in external audit at entity level. Government of Georgia to expedite the external audit at entity level.

Reporting and Low Entity reporting system will be adapted Not applicable. Monitoring. for project reporting. Financial reports are prepared mainly based on spreadsheets as well as by the automated accounting system. Management Low Entity information system, fully Not applicable. Information computerized, will be adapted for the systems project as well. Combined Low The overall financial management Ensure timely Risk Rating risk rating of RD remains compliance with Low . requirements in loan and project agreements. United Water Supply Company, Georgia Implementing Low This implementing agency (IA) will Not applicable Entity function under MRDI (one of the executive agency for PRF).

UWSCG is a limited liability company – LLC, owned 100% by the Government of Georgia. The entity is reporting to the regulatory body – Georgian National Energy and Water Supply Regulatory Commission (GNEWRC) and is required to annually submit, inter alia, to the Regulatory Authority the following: a) Financial and Technical Reports; and b) Action plan for the implementation period. Funds Flow Low Has been managing ongoing projects, Not applicable ADB as well as other external funding agencies’, loan funds. UWSCG will receive into its Bank in a special account or in the treasury both the loan and counterpart funds from

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures Ministry (MRDI). Transfers will be made by UWSCG to the consultants. Staffing Moderate The staff performing financial Engage additional management functions are adequate staff – one staff in for present level of operations and are finance and accounts familiar with ADB’s disbursement department. in policies and procedures. One addition, arrange additional staff will be required for the training of staff on management of PRF and for ADB’s procurement documentation. Staff will need training and disbursement on ADB procedures and requirements processes. to improve operational efficiencies. Accounting Policies Moderate Accounting is based on international Finance and accounts and Procedures accounting standards and follows an manual needs to be accrual accounting system. UWSCG prepared documenting uses FMG accounting software, has a all the procedures. standard chart of accounts, and reports according to International Financial Reporting Standards (IFRS). Budgeting Low Capital planning, and budget Not applicable preparation and co-ordination is carried out by the Financial Manager and based on national budgeting guidelines. Payments Low Present system provides adequate Not applicable platform for making payments under the Project. Internal audit -Moderate Internal audit is conducted by the Training of IA staff in internal audit department. Report are ADB procedures. presented to Director and audit recommendations are acted upon. IA staff needs training on ADB procedures. External audit Substantial Substantial delays in external audit Government of at entity level. Audit for the financial Georgia to expedite years 2016 to 2018 was be provided the external in September 2019. audit at entity level.

For the project implementation period from 2020-2024, the project will fund the external audits of the project statements to be able to comply with ADB’s audit requirements. Arrangements will be made by the UWSCG for the annual external audits of the project financial statements and the entity financial statements. Reporting and Moderate Entity reporting system will be adapted Not applicable. Monitoring. for project reporting. Financial reports

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures are prepared mainly based on spreadsheets as well as by the automated accounting system. Delays are there in the preparation and audit of financial statements. Management Moderate Entity information system, fully Not applicable. Information computerized, will be adapted for the systems project as well. Financial reports are delayed. Combined Substantial The overall financial management risk Induction of one Risk Rating rating of UWSCG remains additional staff, Substantial but is expected to be training in ADB reduced to Moderate after induction of disbursement and additional staff and sufficient training reporting procedures and experience has been acquired by and external audit of its accounting staff. Besides induction of project APFS and staff, the ongoing project is addressing entity APFS. larger FM issues and will enhance capacities of the IA. Tbilisi Development Fund Implementing Low This implementing agency (IA) will Not applicable Agency function under TCH (one of the executive agency for PRF). This is a development fund established under the Municipality of Tbilisi and is 100% owned by TCH. It is governed by TDF Board and its regulatory agency is TCH. TDF has the requisite experience having implemented externally funded projects of European Union. Funds Flow Moderate TDF will have special account in Training in ADB Treasury for loan where it will transfer procedures will be counterpart funds from TCH and then required from this account money will be transferred to consultants. ADB share mainly is transferred directly from treasury account (of TCH) to consultant. Staffing Substantial The staff performing financial Engage additional management functions are adequate for staff – one staff in present level of operations and are not finance and accounts familiar with ADB’s disbursement department. in policies and procedures. One additional addition, arrange staff will be required for the training of staff on management of PRF and for ADB’s procurement documentation. Staff will need training and disbursement on ADB procedures and requirements processes. to improve operational efficiencies. Accounting Policies Low Accounting software ERTIGONI is Not applicable and Procedures based on international accounting standards and follows accrual accounting system.

Risk Category/ Risk Assessment Risk Description Remarks/ Mitigation Description Measures Budgeting Low Capital planning, and budget Not applicable preparation and co-ordination is carried out by the Financial Manager and based on national budgeting guidelines. Payments Low Present system provides adequate Not applicable platform for making payments under the Project. Internal audit Moderate Internal audit is conducted by the Training to IA staff on internal audit department of TCH. ADB procedures. Report are presented to Mayor and the Director. Audit recommendations are acted upon. IA staff need training in ADB procedures. External audit Moderate Delays in external audit at entity level. Government of Audit completed up to FY 2017. Georgia to expedite the external audit at entity level.

Reporting and Low Entity reporting system will be adapted Not applicable. Monitoring for project reporting. Financial reports are prepared mainly based on spreadsheets as well as by the automated accounting system. Management Low Entity information system, fully Not applicable. Information computerized, will be adapted for the systems project as well. Combined Risk Substantial The overall financial management risk Induction of one Rating rating of TDF remains Substantial but is additional staff, expected to be reduced to Moderate training in ADB after induction of additional staff and disbursement and sufficient training and experience has reporting procedures been acquired by its accounting staff. and external audit of project APFS and entity APFS.

E. Strengths and Weaknesses

Strengths. One out of two executive agencies (MRDI) and three out of four implementing agencies (other than TDF) have the experience of having implemented externally funded projects which are either completed or ongoing.

Weaknesses. Substantial delays in external audit at entity level are identified as a major weakness as it does not provide a clear basis for financial planning and governance for effective project implementation.

F. Proposed Timebound Action Plan

Summary of risks identified and suggested mitigation measures applicable to all agencies involved in managing PRF, i.e., MRDI, TCH, MDF, UWSCG, RD, and TDF is given in Table 6.

Table 6: Financial Management Action Plan Area Current Risk Mitigation Responsibility Target Date Scenario Measures Staffing of Finance and This may Strengthening TCH, Second quarter EAs and accounts units hamper the the UWSCG, and 2020 IAs of EAs and IAs timely and finance and TDF are fully effective accounts units of occupied with implementati EAs and IAs by existing on of PRF engaging workload additional staff— one staff each in TCH, UWSCG and TDF for the timely preparation of WAs , and APFS Insufficient New staff in This may Extending TCH, By second quarter Training EAs and IAs cause delays sufficient UWSCG, and 2020 may not be in day to day training and TDF aware of ADB financial capacity procedures and management building support reporting of PRF to enhance the requirements financial management capacity of EAs and IAs Internal Irregular This may Implementation TCH, UWSCG, Conduct yearly Audit internal result of and TDF internal audit as audit in weak internal audit to per government mechanism at internal cover the PRF timelines entity levels control for the project PRF management External Delays in This impact Backlogs in MRDI, TCH, Conduct annual Audit external audit on all the key entity , UWSCG, , external audit for some IAs. financial external and TDF TDF audit is performance audits to be completed up cleared. to FY 2017 only Annual audit of project financial statements (APFS) of the PRF to be ensured by IAs ADB = Asian Development Bank, EA = executive agency, IA = implementing agency, MRDI = Ministry for Regional Development and Infrastructure, TCH = Tbilisi City Hall, MDF = Municipal Development Fund, UWSCG = United Water Supply Company of Georgia, TDF = Tbilisi Development Fund; PRF = Project Readiness Financing, RD = Roads Department.

G. Disbursement

MDF, UWSCG, RD, and TDF will disburse the project readiness loan proceeds following the Asian Development Bank (ADB) Loan Disbursement Handbook (2017, as amended from time

22 to time), and detailed arrangements agreed between the government and ADB. Online training for project staff on disbursement policies and procedures is available. Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control.

The types of disbursement procedures to be utilized under the PRF are direct payment, and advance fund. Reimbursement procedure is applicable under retroactive financing in case payments are covered prior to loan effectiveness.

Advance fund procedure. Four advance accounts will be established in the Treasury Account of the Ministry of Finance with National Bank of Georgia and maintained by the respective IA. The currency of the advance account is in Euro (€). The advance account is to be used exclusively for ADB’s share of eligible expenditures. The Government and IAs are accountable and responsible for proper use of advances to the advance account. The advance account will be essential for the payment of individual consultants for the project preparatory activities under the PRF. This advance fund will facilitate the implementation and funds flow set up for the ensuing LCIP MFF.

The total outstanding advance, in any event, should not exceed the estimate of ADB's share of expenditures to be paid through the advance account for the forthcoming 6 months. The executing agencies may request for initial advance to this account based on an Estimate of Expenditure Sheet setting out the estimated expenditures for the forthcoming 6 months. It is expected that 20% of the PRF amount will be withdrawn through the advance accounts over the

Statement of expenditure procedure (SOE). ADB’s SOE procedure may be used for reimbursing eligible expenditures and liquidating of advances to the advance account. The SOE procedure is a simplified method that does not require submission of supporting documentation of eligible expenditures. There is no single payment ceiling on the use of the SOE procedure under the PRF. However, SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent .

FUND FLOW

Withdrawal applications. Before the submission of the first withdrawal application, the government should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is stipulated in ADB’s Loan Disbursement Handbook. Individual payments below such amount should be paid (i) by MDF, UWSCG, RD, and TDF accordingly and subsequently claimed from ADB through reimbursement unless otherwise accepted by ADB; or (ii) through the advance fund, unless otherwise accepted by ADB. The borrower should ensure sufficient category and contract balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements (CPD) system1 is encouraged for submission of withdrawal applications to ADB.

PRF Fund Flow TCH-TDF

No further disbursements will be made from the PRF account upon refinancing under an ensuing or ongoing loan. The PRF loan amount and accrued financing charges are paid out under the PRF cost category of the ensuing or ongoing loan that will refinance the PRF loan. Provided the following costs are eligible expenditures, the ensuing or ongoing loan will finance (i) costs incurred under PRF that have not yet been paid from the PRF account by the refinancing date, (ii) costs for activities initiated under PRF and continuing beyond the refinancing date, and (iii) costs incurred during PRF implementation but ineligible under PRF.

H. Accounting

MDF, RD, UWSCG, and TDF will maintain separate PRF project accounts and records by funding source for all expenditures incurred under the PRF project. Each IA will prepare annual

1 ADB’s Client Portal for Disbursements system facilitates online submission of withdrawal applications to ADB, resulting in faster disbursement. The forms to be completed by the borrower are available at ADB. Guide to the Client Portal for Disbursements.

25 project financial statements and have its financial statements audited annually by external auditors in accordance with international accounting principles and practices.

I. Auditing and Public Disclosure

The Borrower, through the PRF Executing Agencies and PRF Implementing Agencies, shall (i) maintain separate accounts and records for the PRF Activities; (ii) prepare consolidated annual financial statements for the PRF Activities in accordance with financial reporting standards acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with auditing standards acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report, which includes the auditors’ opinion(s) on the financial statements and the use of the Loan proceeds, and a management letter (which sets out the deficiencies in the internal control of the PRF Activities that were identified in the course of the audit, if any); and (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements, audit report and management letter, all in the English language, and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request. In addition, as separate legal entities, UWSCG, MDF and TDF shall submit to ADB annual AEFS.

The annual audit report for the project accounts will include an audit management letter and audit opinions which cover (i) whether the project financial statements present a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework or not; (ii) whether loan proceeds were used only for the purposes of the project or not; (iii) the level of compliance for each financial covenant contained in the legal agreements for the project; and (iv) the use of the statement of expenditure procedure certifying the eligibility of those expenditures claimed under SOE procedures, and proper use of the SOE and advance procedures in accordance with ADB’s Loan Disbursement Handbook and the project documents, as needed.

The government and IAs have been made aware of ADB’s approach on delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.2 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the government/borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

2 ADB approach on delayed submission of audited project financial statements: • When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (i) the audit documents are overdue; and (ii) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed. • When audited project financial statements have not been received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the executing agency of ADB’s actions; and (ii) advise that the loan may be suspended if the audit documents are not received within the next 6 months. • When audited project financial statements have not been received within 12 months after the due date, ADB may suspend the loan.

Public disclosure of the project financial statements, including the audit report on the project financial statements, will be guided by ADB’s Access to Information Policy (2018).3 After review, ADB will disclose the project financial statements for the project and the opinion of the auditors on the financial statements by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.

PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

Advance contracting. All advance contracting will follow the ADB Procurement Policy (2017, as amended from time to time), Procurement Regulations for ADB Borrowers (2017, as amended from time to time) and its associated staff instructions.4 The issuance of consulting service recruitment notices or invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The government has requested for advance contracting to start consultant recruitment before PRF approvals and ADB’s assistance with consultant firm recruitment for TDF. For delegated consultant recruitment on behalf of TDF, once proposal evaluations are completed by ADB, the government will negotiate with these consultants and sign the contracts accordingly.

Retroactive financing. Retroactive financing is requested for the consulting services and pre-implementation support. Withdrawals from the PRF Loan Account may be made to finance eligible expenditures incurred under the PRF activities before the effective date of the PRF Loan, but not earlier than 12 months before the date of the PRF loan agreement in connection with feasibility studies, detailed engineering design, and procurement preparatory activities, subject to a maximum amount equivalent to 20% of the PRF Loan amount. ADB has advised the MRDI and TCH that approval of advance contracting and retroactive financing does not commit ADB to finance the PRF project.

B. Procurement of Consulting Services

MDF, RD, and UWSCG will be responsible for consultant recruitment of the components that are under their responsibility following ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). ADB will assist Tbilisi Development Fund (TDF) in the consultant selection activities considering that TDF is a new IA under ADB-funded projects. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality–cost ratio of 80:20 for the packages listed below.

Table 7: Indicative Consulting Services Inputs Package Skills/ Component Agency Indicative Person Month Executing Implementing International National Total Feasibility and Detailed Design of Water Supply and Wastewater 1 Components MRDI UWSCG 31 92 123

3 Available from from https://www.adb.org/sites/default/files/related/147171/access-info-policy-r-paper.pdf. 4 https://www.adb.org/documents/staff-instructions-project-implementation

Package Skills/ Component Agency Indicative Person Month Executing Implementing International National Total Feasibility Study and Detailed Design of “Strengthening, Widening and Rehabilitation of Regional and Urban 2 Roads and Bridges” MRDI RD 23 55 78 Feasibility and Detailed Design of tourism destination and associated facilities in the priority regions of 3A Georgia MRDI MDF 26 87 113 Feasibility and Detailed Design of facilities to support local economic development through tourism related support activities and development of 3B institutions MRDI MDF 39 38 77 Developing regional public transport plan for select regions of the 3C republic of Georgia MRDI MDF 18 25 43 Sub Total (MRDI) 137 297 434 Feasibility and Detailed Design of (i) station area improvements and associated area development in Tbilisi, (ii) Metro improvements 4 and (iii) BRTs TCH TDF 102 139 241 Feasibility Study and Detail Engineering Design on the Development of Public and Tourist Transport Services on the Mtkvari 5 River in Tbilisi TCH TDF 37 62 99 Sub Total (TCH) 139 201 340 Tranche 1 41 90 131 Tranche 2 119 161 280 Tranche 3 96 207 303 Total 276 498 774 * The scope of the services under the current contract will cover tranche 1, 2 and 3 with an indicative amount budgeted for future tranches as subprojects are identified during implementation and agreed between ADB and the government.

Individual consultants will be also recruited using ICS for the capacity building component with a total person-months of 145 for international consultant.

The terms of reference for all consulting services are detailed in Appendix 1. This term of reference is tentative. Respective IA could update and finalize the terms of reference prior to the announcement of the respective procurement.

C. Procurement Plan

Basic Data Project Name: Project Readiness Financing for Livable Cities Investment Program Project Number: 53118-002 Approval Number: Country: Georgia Executing Agencies: (i) Ministry of Regional Development and Infrastructure (ii) Tbilisi City Hall Project Procurement Classification: Category B Implementing Agencies: Procurement Risk: Medium (i) Municipal Development Fund, (ii) United Water Supply Company of Georgia, (iii) Roads Department and (iv) Tbilisi Development Fund Project Financing Amount: $18,290,000 Project Closing Date: ADB Financing: $15,000,000 Non-ADB Financing: $ 3,290,000 Date of First Procurement Plan : Date of this Procurement Plan: 13 September 2019 Procurement Plan Duration (in months): 18 Advance Contracting: Yes e-GP: No

A. Methods, Review and Procurement Plan Except as the Asian Development Bank (ADB) may otherwise agree, the following methods shall apply to procurement of goods, works, and consulting services.

Consulting Services Method Comments Quality- and Cost-Based Selection Consulting Firm Quality-cost ratio: 80:20

Least Cost Selection Audit firm recruitment Individual Consultant Selection Individual consultants needed to support the EA/IA in the project delivery

B. Lists of Active Procurement Packages (Contracts) The following table lists goods, works, and consulting services contracts for which the procurement activity is either ongoing or expected to commence within the procurement plan duration.

Consulting Services Procure Advertisement Package General Estimated Bidding ment Review Date Comments Number Description Value (in US$) Procedure Method (quarter/year) 1 Feasibility and $1,662,000.00 QCBS Prior FTP Q4 / 2019 Type: Firm Detailed Assignment: Design of International Water Supply and Quality-Cost Wastewater Ratio: 80:20 Components Comments: To be recruited and managed by UWSCG; Construction management part will be financed by the ensuing loan 2 Feasibility $1,344,700.00a QCBS Prior FTP Q4 / 2019 Type: Firm Study and Detailed Design Assignment: of International “Strengthening, Widening and Quality-Cost Rehabilitation Ratio: 80:20 of Secondary and Local Roads Comments: and Bridges” To be recruited and managed by RD; Construction management part will be financed by the ensuing loan 3 Feasibility $3,924,025.00 QCBS Prior FTP Q4 / 2019 Type: Firm Study and Detailed Design Assignment: of tourism International destination, associated Quality-Cost facilities, local Ratio: 80:20 economic development in Comments: the priority To be recruited regions of and managed by Georgia; MDF; Feasibility study Construction developing management part regional will be financed by public transport the ensuing loan plan 4 Detailed Design $3,440,400.00 QCBS Prior FTP Q4 / 2019 Type: Firm of (i) station area Assignment: improvement International and associated area Quality-Cost development in Ratio: 80:20 Tbilisi, (ii) Metro improvement s and (iii) BRTs; Feasibility Study

Consulting Services Procure Advertisement Package General Estimated Bidding ment Review Date Comments Number Description Value (in US$) Procedure Method (quarter/year)

5 Feasibility $617,333 QCBS Prior FTP Q4/2019 Type: Firm Study on the Development of Assignment: Public and International Tourist Transport Quality-Cost Services on the Ratio: 80:20 Mtkvari River in Tbilisi Comments: Managed by TDF; Subject to the viability of the options, detailed design can be carried out; Construction management part will be financed by the ensuing loan 6 Urban $800,000 Competitiv Prior ICS Q2 2020 Type: Individual Management e Partnership Assignment: Expert International

Comments: 4 experts 7 Public Private $200,000 Competitiv Prior ICS Q3 2020 Type: Individual Partnership e Expert Assignment: International

Comments: 2 experts 8 Small Medium $400,000 Competitiv Prior ICS Q2 2020 Type: Individual Enterprise e Development Assignment: Expert International

Comments:4 experts 9 Procurement $200,000 Competitiv Prior ICS Q3 2020 Type: Individual expert e Assignment: International

Comments:4 experts 10 Tourism expert $100,000 Competitiv Prior ICS Q4 2020 Type: Individual e Assignment: International

Comments:2 experts 11 Structure $100,000 Competitiv Prior ICS Q2 2020 Type: Individual Finance expert e Assignment:

Consulting Services Procure Advertisement Package General Estimated Bidding ment Review Date Comments Number Description Value (in US$) Procedure Method (quarter/year) International 12 Project $230,000 Competitiv Prior ICS Q2 2020 Type: Individual Management e and Capacity Assignment: Development International Consultants National

Comments: Project manager, Engineer, Financial Management, Disbursement; Procurement and Safeguard Consultants 13 Audit $100,000.00 Competitiv Prior LCS Q3 / 2020 Firm: e Assignment: International Comments: PRF Audit a This Estimated Value can be modified during the finalization of terms of reference.

D. Consultant's Terms of Reference (TOR)

A summary of the main outputs expected from the consulting packages under PRF is shown in Table 8 below and detailed TOR is provided in Appendix 1.

Table 8: Consulting Services Expected Outputs Tasks Expected Outputs Remarks Firm/s: Engineering and procurement: • conduct detailed surveys and • Updated safeguard documents, • If the preliminary surveys, confirm that the data are i.e., land acquisition and reports, and data are not correct in accordance with the resettlement plan (LARP), initial available prior to the specified parameters and best environmental examination commencement of international practices (IEE), social and gender action consulting services, the • document preparation, and plan Consultant is required to prepare the expected assessment of the type, size • Gender and differently abled outputs. and amount of contracts, and inclusive detailed engineering recommend options for design, drawings, engineer’s procurement methods to be estimates, and bill of quantities taken (BOQs) for the required Works and Goods under the ensuing loan (Detailed TOR will be developed prior the announcement of procurement.)

Tasks Expected Outputs Remarks Bidding document preparation • bidding documents preparation • Tender documents must • Bidding documents include site plans, layout prepared in in accordance drawings, conceptual designs, with ADB Procurement preliminary BOQ, and a Policy (2017, as amended comprehensive detailed from time to time) and technical requirement for works Procurement Regulations for and goods packages including ADB Borrowers (2017, as design and built contracts. amended from time to time) Individual consultants for the • Detailed terms of reference will • Recruitment of individual ensuing projects during the be developed during the consultants in accordance project pre-construction and preparation stage of each with ADB Procurement construction periods ensuing project Policy (2017, as amended • support various projects’ due from time to time) and diligence activities, i.e. finance, procurement Regulations for social, gender, and ADB Borrowers (2017, as environmental safeguards amended from time to time) • Due diligence following ADB guidelines Audit firm for project financial • Detailed TOR to be statements • Audited project financial developed • conduct annual audit of PRF statements (APFS) • Recruitment of audit firm in project in accordance with • Audit opinion accordance with ADB international accounting • Management letter Procurement Policy (2017, principles and practices, and as amended from time to submit audit reports to time) and procurement respective IAs Regulations for ADB Borrowers (2017, as amended from time to time)

SAFEGUARDS

Since the proposed activities consist of consulting services only, activities have not been categorized in accordance with ADB’s Safeguard Policy Statement (2009). The safeguard classifications for the ensuing loan for Livable Cities Investment Program are expected to be category B for environment and category B for involuntary resettlement. No adverse impacts from the ensuing project are expected for indigenous peoples (category C). For the ensuing LCIP, safeguards ratings will be assessed with relevant safeguards documents prepared accordingly under the F-TRTA.

Safeguards plans to be prepared as needed under the PRF and F-TRTA will include the (i) environmental management plan and/or environmental assessment and review framework, (ii) resettlement plan and/or resettlement framework, (iii) indigenous peoples plan and/or indigenous peoples planning framework.

Prohibited investment activities. Pursuant to ADB’s Safeguard Policy Statement (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth in Appendix 5 of the Safeguard Policy Statement.

PERFORMANCE MONITORING

A. Monitoring

Project readiness financing project performance monitoring. MRDI and TCH will monitor PRF project performance semi-annually and provide consolidated reports to ADB. These reports will include (i) each activity’s progress measured against the implementation schedule, (ii) key implementation issues and solutions, (iii) an updated procurement plan, and (d) an updated implementation plan for the next 12 months. To ensure PRF projects continue to be both viable and sustainable, MRDI and TCH should adequately review PRF project financial statements and the associated auditor's report. In the event that an ensuring loan is not approved, MRDI and TCH will submit a PRF project completion report to ADB within 6 months of physical completion of the PRF project.5

Compliance monitoring. IAs on behalf of the EAs will monitor compliance of loan covenants, including that relating to policy, legal, financial, economic, environmental, and others and ensure compliance with loan covenants and assurances. All non-compliance issues, if any, will be updated in quarterly progress reports together with remedial actions. IAs and ADB review missions (at least twice a year) will also monitor the status of compliance with loan covenants and raise the noncompliance issues with the MOF and the EAs and agree on remedial actions.

Safeguards monitoring. The PRF will prepare the Safeguards monitoring plan for LCIP MFF and agree on the monitoring and reporting requirements with the government.

Gender and social dimensions monitoring. Gender Action Plan will be prepared under the PRF and F-TRTA and will include monitoring and reporting requirements for LCIP MFF.

B. Reporting

MRDI through the IAs and TCH through the TDF will provide ADB with (i) semi-annual progress reports on the PRF project in a format consistent with ADB's project performance reporting system; (ii) annual reports, including (a) progress achieved by output measured against the performance targets, (b) key implementation issues and solutions, (c) an updated procurement plan, and (d) an updated implementation plan for the next 12 months;6 and (iii) PRF project accounts, and implementing agencies audited financial statements, and the associated auditor’s report.

ANTICORRUPTION POLICY

ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy (1998, as amended to date) relating to the PRF project following ADB’s Integrity Principles and Guidelines.7 All contracts financed by ADB will include provisions

5 ADB. 2018. Project Completion Report for Sovereign Operations. Project Administration Instructions. PAI 6.07A. Manila. 6 The regional departments will present the performance of the completed PRF in the project completion report of the ensuing loan. 7 ADB. 2015. Integrity Principles and Guidelines (2015). Manila.

34 specifying ADB’s right to audit and examine the records and accounts of the executing agency and all PRF project contractors, suppliers, consultants, and other service providers. This includes the examination of project outputs, assets, and all other information that may be considered relevant for audit or inspection by ADB regardless of project completion, termination, or cancellation. Firms or individuals on ADB’s anticorruption debarment list are ineligible to participate in activities that are financed, supported, or administered by ADB; and may not be awarded any contracts under the PRF project.8

To support these efforts, ADB included relevant provisions in the loan agreement and project agreements for the PRF. Governance risk assessment will be conducted as part of the ensuing LCIP MFF preparation as per the Second Governance and Anticorruption Action Plan (GACAP II).9 Integrity Due Diligence will be undertaken through the F-TRTA for the ensuing LCIP MFF.

ACCOUNTABILITY MECHANISM

People who are, or may in the future be, adversely affected by the PRF project may submit complaints to ADB’s Accountability Mechanism, which provides an independent forum and process whereby people adversely affected by ADB-assisted PRF projects can voice and seek a resolution for their problems, as well as report alleged violations of ADBs operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.10

RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

All revisions and/or updates during course of implementation should be retained in this section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

8 ADB. Anticorruption and Integrity. 9 ADB. 2006. Second Governance and Anticorruption Action Plan (GACAP II). Manila; ADB. 2008. Guidelines for Implementing ADB’s Second Governance and Anticorruption Action Plan (GACAP II). Manila; and ADB. 2008. Sourcebook: Diagnostics to Assist Preparation of Governance Risk Assessments. Manila (draft). 10 ADB. Accountability Mechanism.

APPENDIX 1

TERMS OF REFERENCE1

1 Will be updated by each IA.

APPENDIX 1

PACKAGE 1: GEORGIA LIVABLE CITIES INVESTMENT PROGRAM TERMS OF REFERENCE FOR DESIGN OF WATER SUPPLY AND WASTEWATER COMPONENTS

I. BACKGROUND

1. Tbilisi, the capital city of Georgia, contributes 70% of the national GDP, with just half of its urban population.1 The city’s urban population also increased from 47% to 51% of the country’s total between 2007 and 2017, while secondary cities in the regions of Kakheti and Samegrelo- Zemo Svaneti experienced declines in urban population during the same period. The reverse trend highlights issues such as out-migration, unbalanced economic growth, limited employment opportunities and poor livability of these urban regions. ADB undertook a National Urban Assessment (NUA) in 2015 that identified the need for balanced regional development to unlock the potential for inclusive economic growth through urban development by adopting multiple strategies, new initiatives, and innovative funding mechanisms at the national and regional level through integrated urban investment planning.2

2. The Asian Development Bank (ADB) and the Government of Georgia (GoG) reoriented urban sector operations to provide integrated and programmatic solutions for developing livable cities in Georgia that are economically competitive, socially inclusive, and environmentally resilient. 3 Since November 2016, ADB has supported the government to mainstream an integrated and participatory approach to urban development by improving strategic planning of selected urban area clusters to achieve a more balanced regional development by preparing Integrated Urban Action Plans (IUAPs).4 Building on this, the government has prioritized crucial urban investments for ADB to take forward through feasibility studies and safeguards due diligence. Already identified urban area clusters shall be expanded and at the same time, the new area clusters shall be added. These include integrated solutions that bring co-benefits to the citizens in the development of the urban clusters including water supply, sewerage and sanitation (including off-network solutions), urban transport and mobility (including nonmotorized and public transport), solid waste management, economic corridors, cultural and historical heritage conservation, flood control and drainage, urban safety and resilience, among others.

1 National Statistics Office of Georgia. 2019. https://www.geostat.ge/en/modules/categories/41/population (accessed on 14 October 2019). 2 ADB. 2016. Realizing the Urban Potential in Georgia: National Urban Assessment. Manila. 3 ADB’s Urban Operational Plan 2012-2020 fosters the growth of Competitive, Inclusive, and Green Cities to improve the performance of cities on the Economic, Equity, and Environment (3Es) fronts. It focuses on 3 innovative approaches to guide the development of livable cities, which is a long-term process, achieved best through integrated planning and implementation of investment. 4 TA-9220 is aligned with the strategic thrust of the COBP, 2015–2017 and the CPS priorities particularly in supporting the government to make essential drinking water, sewerage, and sanitation services more accessible and reliable, in smaller towns and secondary cities that are potential hubs for agribusiness and tourism. TA is also aligned with ADB’s country partnership strategy for Georgia, 2014–2018, which recommends developing municipal plans to make essential drinking water, sewerage, and sanitation services more accessible, reliable, and energy-efficient.

2 Appendix 1 government has proposed to process the Livable Cities Investment Program (LCIP) under an multitranche financing facility (MFF) to improve urban and tourism infrastructure and services across three urban area clusters—Kakheti region with Akhmeta as the hub, Samegrelo-Zemo Svaneti region with Zugdidi as the hub, and Samegrelo-Zemo Svaneti region with Mestia as the hub–and one specific area in the city of Tbilisi. LCIP will help improve the livability of the urban area clusters and Tbilisi through three interlinked outputs: (i) improved adequacy and efficiency of urban infrastructure and services, (ii) improved accessibility, connectivity and attractiveness of regional tourism clusters, and (iii) enhanced institutional capacity for implementing and managing urban infrastructure and services.

4. In continuation of the efforts GoG has applied for a loan from the ADB for LCIP. To be implemented in 4 Tranches, the overall size of the MFF is around USD 451 million with an ADB providing USD 400 million. GoG has also requested ADB to provide project readiness financing to enable feasibility and design of proposed interventions identifies under the LCIP. The identified investments reflect the priorities of Regional development Program of Georgia 2018-2021 and ADB’s Strategy 2030.5

5. The program design has an open-access criteria that would enable any regions to sources resources from the program subject to meeting the sub project selection criteria (See Facility Administration Manual).

6. Using the PRF, GoG intends to engage the services of a Consultant to conduct a feasibility study and detailed design of improvements required for select urban and tourist destinations, as well as associated facilities.

7. There are 4 thematic packages with three being the responsibilities of Ministry of Regional Development and Infrastructure (MRDI) and the other with Tbilisi City Hall (TCH). All 4 packages are interrelated to achieve the project outcomes. The details are in Table 1.

8. There are certain skills that are common for all components and have been allocated within Component 3. These pertain to Institutional Development (ID), Public Private Partnership advisory and communication and outreach. Specifically, the ID specialist will need to cover all the executing and implementing agencies (and associated facilities such as the proposed funds) to identify and define institutional development actions and an implementation plan, besides local economic development related ID tasks.

9. The TOR (s) reflect the requirements of tranche 1 and 3 of the four tranches. Additional work for the subsequent tranches/ additional projects will be identified by GoG and ADB, and communicated to the consultants.

10. The management arrangement for this assignment is presented in Fig 1.

5 https://www.adb.org/sites/default/files/institutional-document/435391/strategy-2030-main- document.pdf.

Appendix 1 3

Table 1: Indicative Consulting Services Inputs. Package Skills/ Component Agency Indicative Person Month Executing Implementing International National Total 1 Feasibility and Detailed MRDI UWSCG 31 92 123 Design of Water Supply and Wastewater Components 2 Feasibility Study and MRDI RD 23 55 78 Detailed Design of “Strengthening, Widening and Rehabilitation of Regional and Urban Roads and Bridges” 3A Feasibility and Detailed MRDI MDF 26 87 113 Design of tourism destination and associated facilities in the priority regions of Georgia 3B Feasibility and Detailed MRDI MDF 39 38 77 Design of facilities to support local economic development through tourism related support activities and development of institutions 3C Developing regional public MRDI MDF 18 25 43 transport plan for select regions of the republic of Georgia Sub Total (MRDI) 137 297 434 4 Feasibility and Detailed TCH TDF 102 139 241 Design of (i) station area improvements and associated area development in Tbilisi, (ii) Metro improvements and (iii) BRTs 5 Feasibility Study and Detail TCH TDF 37 62 99 Engineering Design on the Development of Public and Tourist Transport Services on the Mtkvari River in Tbilisi Sub Total (TCH) 139 201 340 Tranche 1 41 90 131 Tranche 2 119 161 280 Tranche 3 96 207 303 Total 276 498 774

4 Appendix 1

Fig.1: LCIP- PRF Implementation Arrangements

Government of Georgia Multi-agency Asian Development Bank Project Steering Committee: Ministry of Finance of Georgia (MOF) MRDI, MDF, UWSC, Roads Department, MOF, Ministry of Economy and Sustainable Development (MOESD), Georgian National Tourism Administration, Executing Agency 1: Ministry of Regional Enterprise Georgia. Ministry of Executing Agency 2: Education, Science, Culture and Development and Infrastructure of Georgia of Tbilisi City Hall Sport (National Agency for Cultural Heritage Reservation)

Implementing Agency 4 Implementing Agency 1 Implementing Agency 2 Implementing Agency 3 Tbilisi Development Municipal Development Roads Department United Water Supply Fund Enterprise Fund of Georgia Company of Georgia Georgia (MOESD) or similar organization as Project Management, Project Management, Project Management, Project Management, identified Design, Supervision & Design, Supervision & Design, Supervision & Design, Supervision & due diligence due diligence due diligence due diligence Consultant Consultant Consultant Consultant Appendix 1 5

11. The water supply and sanitation (WSS) component of the investment program will address the water and wastewater management needs of the destinations and will be managed by the United Water Supply Company (UWSC) Georgia.

12. United Water Supply Company, Georgia (UWSC) responsible for delivery of water supply intends to engage the services of a firm to conduct a feasibility study and detailed design of “Improving Water Supply and Wastewater in select towns and surrounding villages in the three regions” (Attachment 1). To be implemented in two tranches, the estimated current population is about 0.1 million (as presented below). The design would also include wastewater facility for the towns of Gurjani and Akhmeta.

Sector/ Activity Target Population Sector Tranche 1 Tranche 3 Total Water Supply 31,696 1,06,280 1,37,976 Metering 3,500 0 3,500 Waste Water 13,200 0 13,200

13. Current levels of water supply services are inadequate and quality of concern. Enhancing the levels of services and quality is critical for the economy of the towns and the region. From this perspective the program targets augmenting / providing services to cover about 0.15 million population (current).

II. OUTLINE SCOPE OF W0RK

14. The scope of work under the consultancy services is to: (i) assess the technical, financial, economic, and environmental feasibility of water supply and waste water subprojects in the identified areas (Attachment 1), and (ii) preparation of detailed engineering design and bid documents for implementing water supply and sanitation schemes as part of the Investment Program. The consultant is expected to coordinate with and provide support to ADB TA consultant teams in incorporating low carbon and climate resilient specification and costing in the detail designs as well as carrying out due diligence of the investment projects.

15. The consultant is expected to present a feasibility report for each of the three regions, followed by detailed engineering designs and bid documents. The bidding document should include an extended O&M contract for a minimum period of 5 years or any other implementation modality that ensures sustainability of O&M. The output should also include a CRAM sheet by each procurement package.

16. This task will include reviewing the available data, maps, studies and other related documentation to have a better understanding of the water supply and sanitation systems before commencing field work. The design period of the services would be for up to 2040.

17. The scope would involve study of existing water supply and sanitation systems (especially for Akhmeta and Gurjani) in the identified areas, assess the deficiencies or gaps in the availability and adequacy of infrastructure. This shall include technology aspects, supply· versus demand, level of services, public aspirations, sustainability, optimization of resources, amount of non-revenue water, institutional constraints, etc.

18. Agree on preliminary design criteria for preparing water supply and sanitation schemes with UWSC in conformity with standards agreed with the UWSCG and based on national and international standards. The overall objective of water supply and sanitation ('WSS) services hould be to ensure service regularity, coverage to all population, and ensure potable quality of water supplied and sewage treated to agreed standards. The tasks would

6 Appendix 1 include:

i. Assessment of existing water supply sources, determine the quantity and quality of water required; ii. Determining if the settlement needs a stand-alone scheme or if it could be a multi village/ settlement scheme with a single source; iii. Assessment of yield and reliability and identification of alternate sources if required; iv. For identified water supply sources, determine system - requirement for headworks, pumping and raw water transmission; and v. Prepare an outline plan for water supply system for the towns/ villages from which packages for detailed engineering design and estimation should be derived.

19. On approval of the Plan:

i. Based on water supply sources identified, determine appropriate headworks structures, water treatment technologies, and capacity of reservoirs required; ii. Define technologies required to manage delivery with the overall objective of reducing NRW. 100% metering of bulk water flow and domestic, commercial and industrial properties is envisaged. Consultants should plan for district metering zones using the approach, which would also assist in isolating zones to assess non-revenue water and rectify system; and iii. Determining the extent of water distribution system rehabilitation and/or replacement, expansion to uncovered areas, and water supply approach to poor settlements.

20. Tasks would include identification of land and ownership for all facilities and preparation of resettlement plans including schedule for land acquisition, if any.

21. Other tasks include:

A. Surveys and Investigation

i. Conduct necessary field tests and collect all data required for preparing detailed designs; ii. Verify all details of each proposed subproject, the physical and site conditions, the execution methodology, etc, all data utilized in preparing the detailed design shall be presented indicating the source of the data and also the basis of assumptions, if any; iii. Each service center shall indicate the subproject sites and their available data. The Consultant shall be responsible for verifying these data. The Consultants should verify the quality of available data and confirm whether data is reliable and scientifically derived, and whether it is suitable for detailed engineering designs; iv. Develop base maps and detailed WSS network layout based on pipeline corridor and condition surveys. Base maps pipeline corridor and condition details should be available. Consultants will use the outputs to conduct hydraulic modelling and designing WSS systems; and v. Conduct detailed total station surveys, as needed, for subproject areas to facilitate contour development, and preparation of a bulk facility, layout plan along with reduced levels based on permanent benchmarks.

B. Detailed Designs, Cost Estimates, Drawings and Specifications

vi. Prepare preliminary and detailed engineering designs, rate analysis, drawings, cost estimates, and bills of quantities for water supply and sanitation subprojects based on surveys, investigations and feasibility studies; Appendix 1 7

vii. Develop appropriate design approaches and confirm standards with the UWSCG, to be adopted for the Investment Program and based on international and national design standards; and viii. Prepare land plan schedules indicating the locations of underground and overhead tanks as well as pumphouses with cadastral details to facilitate land acquisition. The Consultant shall select lands belonging to the service center or other government land to the extent possible.

C. Bid Process Management

22. Prepare prequalification documents based on ADB standard bidding documents (SBDs) for proposed subprojects and assist the UWSCG invite statement of qualifications from bidders.

i. Assist the UWSCG evaluate the submissions and shortlist contractors for bidding; ii. Prepare international competitive bidding (ICB) and national competitive bidding, (NCB} documents based on the subproject requirement, and assist UWSCG in inviting bids from short-listed contractors; iii. Assist the UWSCG in pre-bid conference; iv. Assist UWSCG in bid evaluation and prepare bid evaluation reports for the Tender Committee and consequent review by ADB, and v. Assist the UWSCG in contract negotiations and award to the lowest evaluated and substantively responsive bidder for each contract.

III. SPECIFIC SCOPE OF WORK

A. Preparation of Base Map

23. Aerial photography and GIS-based maps are available for Investment Program towns and villages. The Consultant should overlay all relevant information on these maps. UWSCG will provide the Consultant access to available photographs and maps. Data from corridor surveys for pipelines should be overlaid. Additional data to be incorporated will include prominent landmarks, name of localities, etc. Additional surveys shall be carried out in case of open areas, which are not encompassed or crossed by roads to mark open areas and boundaries of the towns, with detailed topographic maps prepared. Indicative areas of Investment Program are listed in Attachment I. (Subject to confirmation by UWSC).

B. Topographical Surveys

i. All topographical surveys have to be carried out with respect to the nearest benchmark approved by the UWSCG. The Consultant is expected to submit the list of surveys to be carried out along with the finalized scope of work to the UWSCG and the respective service center before proceeding with the surveys. The broad scope of work for topographical surveys is described below; and ii. Necessary survey work has to be carried out using total station equipment with its accessories. The UWSCG expects the Consultant to plan its survey work in such a way that it can start the designs early. The approach, methodology, and work plan should contain a detailed plan for conducting the required surveys. The survey work plan should be discussed and approved by the UWSCG during the preparation of the Inception Report.

C. Pipeline Corridor and Asset Condition Survey

24. Indicative guidelines for WSS pipeline corridor and asset condition survey are detailed

8 Appendix 1 below: i. The surveys shall be carried out along all pipeline alignments and streets of Investment Program towns/ villages. The surveys shall capture existing topographical features such as road boundary limits, types and width of the road, trees, storm water drains beside the roads, telephone poles, power poles, huts, bus stops, existing water lines, and related features such as valves, air valves, wells, pumps, intake points and all man- made features within the survey limit; ii. If the pipe alignment runs along open areas, the survey shall be conducted for a 15m. width. the levels shall be taken at every 50m for plotting longitudinal sections. Cross sections should be taken at -every 50 m interval; and iii. A full inventory map of the existing water supply' and sewerage system needs to be prepared. This shall include intake works, treatment plants, pumphouses, wells, valves, etc. Separate maps have to be provided for existing water supply facilities and underground sewer systems.

D. Water supply asset inventory will cover:

25. Production and bulk transmission: Source (wells, springs, and river), headworks, transmission lines and treatment systems.

26. Distribution network and connections: Pipe alignment, pipe age, pipe material, pipe diameter, pipe depth, manholes (visible and under asphalt), valves, pressure reducers, pumps and pumping stations, chambers, gates, switches, hydrants, anomalies (e.g. bad gates, blocked elements), unregistered/illegal connections not mapped, and borehole supplying districts.

E. Sewerage

27. Major Feed lines: Pipe alignment, pipe age, pipe material, pipe diameter, pipe depth, and asset condition Intake and treatment facilities: Coordinates., location, and dimensions.

28. Town Grid: Pipe alignment, pipe age, pipe material, pipe diameter, pipe depth, manholes (visible and under asphalt), invert levels at manholes, and unregistered/illegal connections not mapped. Trunk sewers to treatment plant: Pipe alignment, pipe age, pipe material, pipe diameter, pipe depth, and asset condition. Treatment facilities: Coordinates, location, and dimensions.

F. Area Surveys

29. In addition, the Consultant shall be required to conduct surveys for areas where the main lines are ln open areas and the countryside for new and existing treatment plants. The scope of works is described below.

i. Detailed plans including the footprints of the buildings and any other structures shall be surveyed and plotted on a scale of 1:500. The survey shall also pick up all other visible features within the earmarked area such as trees, poles, manholes, etc. The survey shall also Include levelling, cross sections, and longitudinal sections of alignments at regular intervals as necessary to generate a contour map of the area with 0.5 m contour intervals; and ii. Area surveys shall be carried out for proposed and existing location of water and sewage treatment plants and a grid of 10m x 10m. All existing features should be covered such as building areas, pumphouses, clear water tanks, channels, etc. with levels and measurements. Appendix 1 9

G. Geo-Technical Investigations

30. The Consultant should determine the actual type and extent of geotechnical investigations after discussion with UWSGC. The investigations list should include justifications and submitted to UWSCG for approval. The general types of Investigation required are listed below:

i. Trail pits at different depths; ii. Auger boring; iii. Bore holes, and iv. Laboratory Tests.

H. Hydrogeological Investigations

31. The following is a minimum amount of work the Consultant should conduct to investigate site conditions.

i. Prepare a site and project description; ii. Prepare a map showing the regional setting; iii. Conduct field Investigations that include test borings to determine the subsurface geology; iv. Analyze data to determine the impact on nearby surface water and groundwater resources, and v. Evaluate the water quality, suitability and evaluate the chemical quality of water in the excavation.

32. The investigation report should document existing site conditions and determine if the site is suitable for project works.

I. Hydraulic Modelling

33. The Consultant will prepare a hydraulic model for each system in order to gain a full understanding of its hydraulic behavior. The model shall be a tool to plan infrastructure improvements, develop operational maintenance strategies, and manage the system proactively. The Consultant's model will include:

i. Model building; ii. Field testing; iii. Model loading and allocation, and iv. Model calibration Network analysis

J. Water Supply

34. The Consultant shall prepare technical and economical solutions for the overall improvement of the water supply systems in Investment Program towns. The solutions shall meet the present demand as well as future demand in 2040 in a cost effective and sustainable manner. The following are indicative activities for water supply design and estimates.

K. Water Source and Demand Estimates

i. Conduct technical, economic, financial, and environmental studies of water sources - surface and ground - in Investment Program towns and determine options to supply each town to meet long-term water demand for 2040;

10 Appendix 1 ii. Conduct hydro-geological studies and investigations to ascertain groundwater potential and determine the safe aquifer yield till 2040; and iii. Finalize water sources and develop designs, drawings, cost estimates and specifications for head works and raw water transmission system.

L. Water Treatment

i. Conduct water quality surveys at source and consumer points (number and location to be agreed with UWSCG) to determine type of treatment required; ii. Analyze options for selecting the most technically feasible and economically viable solution. The analysis of options would delineate different alternatives and include a simulation analysis based on life cycle costs for implementation; iii. Conduct a system diagnosis for existing water treatment plants, and develop preliminary technical designs and drawings to upgrade the water treatment plant; iv. Carry out required surveys and investigations -topography, soil, hydrogeological etc.; and v. New plants: Develop process design and design criteria with flow sheets, works layout, hydraulic level and diagram, and piping as well as fully automated arrangements and SCADA system.

M. Water Distribution Network

i. Review existing water supply distribution network maps prepared by UWSCG or other consultants, supplement as necessary, and conduct the location and condition surveys; ii. Prepare GIS-based pipeline network maps for the towns on the base maps supplied by the UWSCG. If the GIS base maps are not supplied by the UWSCG, the Consultant should prepare base maps and pipeline condition and network maps; iii. Undertake computer analysis and hydraulic modelling of the, existing water supply networks. Identify any existing hydraulic constraints and incorporate rectifications, if necessary) in the proposed subproject; iv. Conduct a power and water audit of the water supply system. Incorporate efficiency improvements in the subproject design where appropriate; v. Provide workable solutions for reducing non-revenue water by introducing leakage control, metering, measurement, monitoring, improved maintenance practices, pressure control, etc. Incorporate detailed proposals and action plans for conducting regular water audits and leak detection studies; and vi. Prepare detailed estimates for fixing water meters for each household, institutional, commercial, and industrial connection to achieve 100% metering.

N. Sewerage and Sanitation

35. The Consultant shall prepare technical and economical solution for the overall improvement of the sewerage systems in investment Program towns. The solutions shall meet the present demand as well as future demand in 2040 in a cost effective and sustainable manner. The following are indicative activities for sewerage system design and estimates.

O. Sewerage Treatment Plant

i. Conduct wastewater sampling and analys.is, to determine the quality and volume of sewage presently discharged; ii. Prepare scope for abandonment and/or demolition of old and dilapidated facilities and prepare plans for their replacement; Appendix 1 11

iii. Conduct a sampling and analysis program of the receiving water body where sewage treatment facilities are to be located. Propose suitable technology for treating sewage based on principles of cost effectiveness, reliability, and compliance with international effluent discharge standards {standards to be agreed with UWSCG); iv. Carry out required surveys and investigations- topography, soil, hydrogeological, etc.; and v. Develop process design and design criteria with flow sheets, works layout, hydraulic level and diagram, and piping as well as fully automated arrangements.

P. Sewer Network

i. Identify major wastewater producers and pollution sources that may require additional treatment prior to discharge to the public sewers. Recommend appropriate actions; ii. Evaluate performance of pumping stations by conducting a power audit and the impact on energy efficiency. Develop suitable solutions to collect and discharge sewage based on hydraulic modelling and zones, and iii. Prepare a master plan for sewerage system in the investment Program towns from which packages for detailed engineering design and estimation should be derived.

Q. Environmental Assessment

36. The Consultants will update existing environmental assessments in the detailed design stage, and will prepare IEEs and/or EIAs for new subprojects, where required, to comply with the Investment Program's environmental assessment and review framework. Specific tasks include: i. Conduct environmental quality monitoring (like ambient air and noise, as well as water quality); ii. Update IEEs/EIAs and EMPs for Package A towns during the detailed design stage; iii. Ensure that all new subprojects follow the criteria in the environmental subproject selection guidelines. Classify all new subprojects in accordance with ADB's classification system by conducting Rapid Environmental Assessment; iv. Conduct EIAs for Category A and IEE for Category B subprojects. Approval of tile IEE/IEIAs is a condition precedent for contract award. IEEs/EIAs will be consistent with Government and ADB's Environment Policy and the Project; v. Conduct public consultations and disclosures during the IEE or EIA processes and incorporate comments in the IEE and EJA reports; and vi. Incorporate mitigation measures in subproject design. Appropriate mitigation measures will form part of contract documents to be implemented by contractors and UWSCG.

R. Resettlement Planning

37. The Consultant will review and/or update any existing resettlement plans in the detailed design stage, and will prepare resettlement plans for new subprojects, where required to comply with the Investment Program's resettlement framework. Assess the impact of the scheme and determine necessary resettlement needs considering various options for avoiding or minimizing such needs. Estimate such costs of compensation including land costs. Prepare documents for acquiring land and involuntary; resettlement as per the resettlement framework. Deliverables

S. Gender

38. The consultant will provide support to team leader on water sector and institutional assessment tasks above from the social development perspectives and conduct

12 Appendix 1 comprehensive social assessment and preparation of and will (i) conduct socioeconomic surveys if needed, in collaboration with other specialists; (ii) review government policies and strategies for poverty reduction and gender mainstreaming; (iii) conduct a public perception survey to identify issues and development priorities; (iv) conduct a poverty, social, and gender assessment to collect a baseline socioeconomic data (including sex-disaggregated baselines and proxy data) on program beneficiaries which further can be used for monitoring and evaluation purposes; (v) prepare a poverty reduction and social strategy, and (vi) prepare a gender action plan and other social action plans.

T. Economic Analysis and Financial Analysis of Projects

39. Each package should include an economic analysis and financial due diligence as per the requirements of the ADB.

40. The economic analysis should be in accordance with ADB guidelines, including the Economic Analysis of Water Supply Projects (1998) and the Guidelines for the Economic Analysis of the Projects (2017).6

41. Financial Analysis: In coordination with the economists, the financial analyst would include an FDD in accordance with ADB’s requirements,7 which include the following tasks: i. conduct a financial management assessment of the implementing agency, including (a) assessing whether previous financial management assessments have been conducted by ADB or other agencies and, if so, reviewing the results and ascertaining whether these can be used as input, (b) assessing FM staffing and capacity for planning and budgeting, management and financial accounting, reporting, auditing, internal controls, and information systems ii. (c) reviewing proposed disbursement including any necessity or capacity for using advance procedure of the statement of expenditure procedures and funds-flow arrangements, (d) concluding on the financial management risk rating, (e) identifying risks arising from material deficiencies, and propose practical recommendations for improving financial management functions and/or staffing for financial operations needed to mitigate risks; (f) provide relevant detailed information to enable completion of the financial management sections, Risk Assessment and Risk Management Plan, and (g) explain to the government the financial management assessment, and relevant proposed financial risk mitigation measures; iii. support the preparation and agreement of consolidated cost estimates for the ensuing projects and a financing plan, which are based on verifiable data and are sufficient to support project implementation; iv. prepare financial projections and conducting financial analyses of the implementing agency, and incremental recurrent costs, to determine financial sustainability, and reviewing proposed cost-recovery and tariff policies, including affordability; v. conduct financial evaluations (financial cost-benefit analyses) including sensitivity analyses of project components that have a cost-recovery objective; vi. conduct financial sustainability and fiscal impact analysis with the emphasis on the availability of adequate financial resources to meet the incremental recurrent costs arising from the project, their ability to service ADB loan, and to provide the necessary counterpart funding during project implementation. This includes assessment of the financial status of the executing and implementing agencies in reference to their

6 ADB. 1998. Economic Analysis of Water Supply Projects. Manila; and ADB. 2017. Guidelines for the Economic Analysis of the Projects. Manila. 7 Refer to the following PFFM guidance material: (i) Technical guidance note (TGN) for Financial Management Assessment (2015), (ii) TGN (2015) for project financial reporting, and (iii) TGN (2014) for preparation of cost estimates, and eLearn module for Cost Estimates preparation and presentation. Appendix 1 13

respective counterpart funding requirements for the project, where significant risks are identified to project financial sustainability or viability, propose relevant financial performance indicators to be incorporated in financial covenants; vii. assess and reach agreement on financial reporting, auditing and public disclosure arrangements for the project, and, as appropriate, identify and agree on arrangements for receiving financial statements from executing agencies and implementing agencies; and viii. prepare appropriate fund flow mechanism, disbursement schedule including contract awards and disbursements; and standard cost estimates tables (in coordination with the Procurement specialist), and provide costing and financial forecasting data for the economic analysis (in coordination with Economist).

IV. DETAILED DESIGN REPORTS

42. The Consultant shall prepare the Detailed Design Reports covering each contract package to be tendered under ADB's Standard Bidding Documents for Construction for Building and Engineering Works Designed by the Employer, Multilateral Development Bank Harmonized Edition 2006 (FIDIC Mar 06). The Detailed Design Report shall follow the requirements of the UWSCG and contain the following items. i. Background of the subproject and introduction; ii. Details of subprojects taken up under the program and the packages; iii. Design calculations with full back-up data; iv. Maps, drawings, and database generated. The maps and drawings shall be printed on a suitable scale; v. The results of the hydraulic modelling after surveys, investigations, and analysis of alternatives; vi. Final design drawings for plans and profiles showing location and size of all major features, and vii. Final design and drawings of the local distribution improvements integrated with new networks in map format (including digital form in GIS platform) showing all design features agreed by the UWSCG. The distribution system design shall incorporate continuous supply in different zones as per topographical and other technical requirements to be executed in phases progressively during the construction periods.

43. All design works and drawings should be translated into Georgian.

44. Design reports for contracts to be tendered under ADB's Standard Bidding Documents. The procurement method should be based on alternatives of implementation such as DBO, build and operate etc.

45. The Consultant shall prepare bid documents for implementing each subproject in the format prescribed by the ADB. Bid documents for each package should contain full specifications and designs, drawings of the items included, conditions of contract, schedule of supplementary information to be furnished by bidders, detailed invitation for bids. The bid documents, cost estimates and schedules shall be prepared in sets according to the different packages approved by the UWSCG.

V. SCHEDULE AND DELIVERABLES

46. The time frame for this assignment is 8 months. The sets of design and drawings bid documents and other reports shall be furnished in preliminary draft form and in five copies. The Consultant shall incorporate UWSCG comments and furnish copies of the final version within 15 days. The time period for feasibility will be four months from Start and the detailed designs and bids should be delivered by the end of 8th month from Start. However, consultants will need to prioritize delivery based on the clients need to initiate works before the date of

14 Appendix 1 closure of consultancy. After approval of Detailed Project Report and Bid Documents select specialist of the consultant shall be retained for an additional 6 months’ time for bid process management.

VI. EXPERTISE

47. The duration of the consultancy is 8 months. While engineering skills and experience are required as the backbone of this work, a general understanding of the present system with institutional arrangements to carry out to the woks is also essential.

48. All of the members of the consulting team must have excellent communication and interpersonal skills and they must be fluent in English. The key experts required for the Consultant’s team and their minimum qualifications and experience and minimum input are as follows:

49. Members of the consultancy team must have working experience in developing countries. Staff should be fluent in written and spoken English, fluency in Georgian would be an advantage. All team members must be present in Georgia when conducting their assignments.

No. Position Qualification Person months I International Experts 1 Team Leader/ Water Civil engineer with a post graduate qualification in Civil, 10 Supply Engineer Environmental or Public Health Engineering and with preferably 20 years of post-graduation experience in planning, and design of water supply and sewerage projects, out of which 8 years should be in similar projects as a team leader. 2 Water Treatment Civil engineer with a post graduate qualification in Civil, 3 Plant Specialist Environmental, Public Health or Chemical Engineering and with preferably 15 years of overall experience in process design, including sludge treatment and disposal, and operation of water treatment plants. 3 Asset Management/ Graduate civil or mechanical engineer with preferably 10 3 GIS Specialist years of water engineering experience, including 5 years as an asset management expert in a water utility undertaking providing services to at least 100,000 customers. Should have in-depth knowledge of GIS systems. 4 NRW/ Network Graduate civil engineer having preferably 15 years of 4 Rehabilitation experience in the design of water distribution systems of Specialist which 5 years should be in NRW reduction works or the rehabilitation of pipelines. Should also be familiar with the latest metering and meter reading technology, and linkage to a GIS platform. Experience in DMA based system design or operation shall be an added advantage. 5 SCADA Specialist Graduate in electrical or electronics engineering with 2 preferably 15 years of post-graduate experience of which 5 years should be in the development and implementation of SCADA systems in the water supply sector. 6 Wastewater Degree in engineering and PG in environmental 9 Specialist engineering with 15 years of experience Sub Total 31 II National Experts Appendix 1 15

1 Deputy Team Leader/ Civil engineer with a post graduate qualification in Civil, 9 Civil Engineer Environmental or Public Health Engineering with preferably 15 years of post-graduation experience in water supply and sewerage projects, out of which 5 years should be in similar projects as a deputy team leader preferably with international exposure. 2 Hydraulic Specialist Civil engineer with a post graduate qualification in Civil, 6 Hydraulics or Public Health Engineering preferably with 10 years of overall experience in the design of water supply networks, WTP and other water facilities, and hands-on knowledge of network hydraulic modelling. 3 Water Supply Civil engineer with a post graduate qualification in Civil, 9 Engineer Environmental or Public Health Engineering with preferably 10 years of overall feasibility study, design and bid document preparation experience, out of which 3 years should be in similar water utilities rehabilitation works. 4 Structural Engineer Graduate in civil or structural engineering with preferably 4 10 years of post-graduate experience, of which 5 years should be in water retaining structures including rehabilitation works on similar projects. 5 Mechanical/Electrical Graduate in mechanical/electrical engineering with 4 Engineer preferably 10 years of post-graduate experience, of which 3 years should be in design and rehabilitation of WTPs and pumping stations. 6 SCADA and GIS Graduate in electrical or electronics engineering with 4 Specialist preferably 10 years of post-graduate experience of which 3 years should be in the development and implementation of SCADA systems in the water supply sector. 7 Quantity Surveyor/ Graduate in quantity surveying or civil engineering with 4 Specifications preferably 10 years of overall experience in the Specialist preparation of bills of quantities and cost estimation, out of which 3 years should be in water supply projects. 8 Geotechnical Engineer Post graduate qualification in geotechnical engineering 2 with preferably 10 years of overall experience in soil survey and analysis. 9 Procurement/ Contract Graduate civil engineer having preferably 10 years of 4 Management overall experience in procurement and contract Specialist management, with preferably 3 years on WTP and water distribution projects. 10 Sewerage and Degree in Civil with 20 years of relevant experience 9 Drainage Expert specific experience in treatment plant process and treatment plant design. 11 Hydraulic Specialist Degree in Civil/Mechanical with 20 years of relevant 6 experience in sewerage modeling. 12 Economist Masters in Economics, Management, Finance, Cost/ 2 Chartered Accounting with around 10 years’ experience in infrastructure project economic analysis 13 Financial Management Masters in Business Management, Finance, Cost/ 2 and assessment Chartered Accounting/ CPA/ACCA with experience in financial due diligence, with around 10 years’ experience in infrastructure project financial analysis and financial management assessment of the implementing agency. 14 Environmental The Environmental Specialist shall be a qualified and 4 Specialist competent expert in environmental impact assessment of road projects and a minimum of 10 years of professional experience. Experience in environmental impact assessment under the ADB procedures would be an asset. 15 Social Safeguards The Social Safeguards Specialist shall be a qualified and 5 competent expert in social impact assessment and

16 Appendix 1 preparation of resettlement action plans and a minimum of 10 years of professional i experience. Fluency in both written and spoken English is required. Experience in the ADB social safeguards assessment procedures would be an asset 16 Gender Specialist Advanced/ Master’s Degree in Gender, Sociology, 3 Anthropology, Development Studies, or other related Social Science fields with around 10 years of professional level experience in gender mainstreaming, analysis, research, designing gender policies, strategies, guidelines, and training manuals and regional, national and local level experience, and substantial knowledge of the social and gender issues. Experience with ADB or World Bank project a necessity. 17 Support Staff 15 Sub Total 92 Total 123

VII. CLIENT SUPPORT

50. To enable the Consultant to carry out the work, the UWSCG will provide all available data, reports, and maps of existing systems. Additional data, if any required, should be collected by the Consultant from the UWSCG and the service centers.

51. UWSCG will assist in coordinating with relevant government agencies in obtaining required approvals and authorizations.

52. No office accommodation will be provided by the UWSCG for the consultancy. The Consultant shall make its own arrangements for office accommodation, transportation, communication, and equipment for the consultancy. Appendix 1 17

ATTACHMENT 1: INDICATIVE WORKS IN INVESTMENT PROGRAM TOWNS

Activity Unit Population Population Total North Khaketi 2017-18 2017-18 Akhmeta Municipality - Matani WSS Person 4800 4800 Akhmeta Municipality - Maghraani WSS Person 600 600 Akhmeta Municipality - Customer meters Meter 500 500 Akhmeta - WWTP (mid-low energy) Person 6,000 6000 Akhmeta - villages WSS Person 24000 24000 Gurjaani - Velistsikhe WSS Person 4800 4800 Gurjaani - Zagaani WSS Person 1200 1200 Gurjaani: Mukuzaani WSS Person 1200 1200 Gurjaani: Akhasheni WSS Person 800 800 Gurjaani - Customer meters WS Meter 500 500 Gurjaani - 1. Kachreti 0 Gurjaani - WWTP (mid-low energy) Person 7200 7200 Gurjaani - villages WSS Person 24000 24000 Telavi - Kurdghelauri WSS Person 1800 1800 Telavi - Vardisubani WSS Person 1800 1800 Telavi - Customer meters WS Meter 1000 1000 Telavi - Villages WSS Person 6000 6000 Sub Total Population (Water) 15,000 56,000 84,200 Sub Total Meters 2,000 0 2,000 Sub Total Population (Wastewater) 13,200 0 13,200 Zugdidi Tsaishi WSS Person 3068 3068 4 Villages WSS Person 3,840 3840 Customer meters WS Meter 1000 1000 44 Villages WSS Person 42240 42240 Khobi WSS Person 5090 5090 Sub Total Population (Water) 11998 42240 55238 Sub Total Meters 1000 0 1000 Sub Total Population (Wastewater) Mestia Lenjeri WSS Person 1467.6 1467.6 Mulakhi - Lahiri WSS Person 705.6 705.6 Ushguli WSS Person 216 216 Latali WSS Person 915.6 915.6 Becho WSS Person 913.2 913.2 Customer meters WS Meter 500 500 Villages WSS Person 7200 7200 Lentekhi - Villages WSS Person 480 480

18 Appendix 1 Activity Unit Population Population Total Lentekhi - Villages WSS Person 840 840 Sub Total Population (Water) 4698 8040 12738 Sub Total Meters 500 0 500 Sub Total Population (Wastewater)

Appendix 1 19

PACKAGE 2: GEORGIA LIVABLE CITIES INVESTMENT PROGRAM TERMS OF REFERENCE FOR FEASIBILITY STUDY AND DETAILED DESIGN OF “STRENGTHENING, WIDENING AND REHABILITATION OF SECONDARY AND LOCAL ROADS AND BRIDGES”

I. BACKGROUND

1. Tbilisi, the capital city of Georgia, contributes 70% of the national GDP, with just half of its urban population.1 The city’s urban population also increased from 47% to 51% of the country’s total between 2007 and 2017, while secondary cities in the regions of Kakheti and Samegrelo-Zemo Svaneti experienced declines in urban population during the same period. The reverse trend highlights issues such as out-migration, unbalanced economic growth, limited employment opportunities and poor livability of these urban regions. ADB undertook a National Urban Assessment (NUA) in 2015 that identified the need for balanced regional development to unlock the potential for inclusive economic growth through urban development by adopting multiple strategies, new initiatives, and innovative funding mechanisms at the national and regional level through integrated urban investment planning.2

2. The Asian Development Bank (ADB) and the Government of Georgia (GOG) reoriented urban sector operations to provide integrated and programmatic solutions for developing livable cities in Georgia that are economically competitive, socially inclusive, and environmentally resilient.3 Since November 2016, ADB has supported the government to mainstream an integrated and participatory approach to urban development by improving strategic planning of selected urban area clusters to achieve a more balanced regional development by preparing Integrated Urban Action Plans (IUAPs). 4 Building on this, the government has prioritized crucial urban investments for ADB to take forward through feasibility studies and safeguards due diligence. These include integrated solutions that bring co-benefits to the citizens in the development of the urban clusters including water supply, sewerage and sanitation (including off-network solutions), urban transport and mobility (including nonmotorized and public transport), solid waste management, economic corridors, cultural and historical heritage conservation, flood control and drainage, urban safety and resilience, among others.

3. To expedite balanced regional development, support for basic urban services and transport have been prioritized, particularly in small towns and regional cities that are potential hubs for tourism, agribusiness, and regional trade as key drivers of economic growth. Governance and capacity building will need to be integrated into the ensuing projects to achieve more robust results and ensure operational and financial sustainability of infrastructure projects. The government has proposed to process the Livable Cities Investment Program (LCIP) under an multitranche financing facility (MFF) to improve urban and tourism infrastructure and services across three urban area clusters—North Kakheti region with Akhmeta as the hub, Samegrelo-Zemo Svaneti region with Zugdidi as the hub, and

20 Appendix 1

Samegrelo-Zemo Svaneti region with Mestia as the hub–and one specific area in the city of Tbilisi. LCIP will help improve the livability of the urban area clusters and Tbilisi through three interlinked outputs: (i) improved adequacy and efficiency of urban infrastructure and services, (ii) improved accessibility, connectivity and attractiveness of regional tourism clusters, and (iii) enhanced institutional capacity for implementing and managing urban infrastructure and services.

10. The management arrangement for this assignment is presented in Fig 1. The Roads Department of Georgia (RD) will be the implementing agency for this task

Table 1: Indicative Consulting Services Inputs. Package Skills/ Component Agency Indicative Person Month Executing Implementing International National Total Feasibility and Detailed Design of Water Supply and Wastewater 1 Components MRDI UWSCG 31 92 123 Feasibility Study and Detailed Design of “Strengthening, Widening and Rehabilitation of Regional and Urban 2 Roads and Bridges” MRDI RD 23 55 78

5 https://www.adb.org/sites/default/files/institutional-document/435391/strategy-2030-main-document.pdf.

Appendix 1 21

Package Skills/ Component Agency Indicative Person Month Executing Implementing International National Total Feasibility and Detailed Design of tourism destination and associated facilities in the 3A priority regions of Georgia MRDI MDF 26 87 113 Feasibility and Detailed Design of facilities to support local economic development through tourism related support activities and development of 3B institutions MRDI MDF 39 38 77 Developing regional public transport plan for select regions of the 3C republic of Georgia MRDI MDF 18 25 43 Sub Total (MRDI) 137 297 434 Feasibility and Detailed Design of (i) station area improvements and associated area development in Tbilisi, (ii) Metro improvements and 4 (iii) BRTs TCH TDF 102 139 241 Feasibility Study and Detail Engineering Design on the Development of Public and Tourist Transport Services on the 5 Mtkvari River in Tbilisi TCH TDF 37 62 99 Sub Total (TCH) 139 201 340 Tranche 1 41 90 131 Tranche 2 119 161 280 Tranche 3 96 207 303 Total 276 498 774 * The scope of the services under the current contract will cover tranche 1, 2 and 3 with an indicative amount budgeted for future tranches as subprojects are identified during implementation and agreed between ADB and the government.

22 Appendix 1

Fig.1: LCIP- PRF Implementation Arrangements

Appendix 1 23

11. The Average Annual Daily Traffic (AADT) will increase significantly in future years due to regional development and tourism etc. This part of the consultancy is expected to look at the current road safety deficiencies and recommend a variety of solutions to make for safer roads. It is envisaged that this project will result in the reduction of travel times and vehicle operating costs and that the safety of road users will be enhanced.

12. This investment will cover both secondary and local roads, and will be managed by the Road Department of Georgia (RD).

II. OBJECTIVES

13. The main objectives of the assignment are to enhance access to tourism destinations and markets/ facilities by the local population. This will be achieved through strengthening/ rehabilitating and widening secondary road networks as well as improved/ alternate local roads.

III. SCOPE OF WORK

14. Under these Terms of Reference (TOR), the Consultant will prepare a Feasibility Study and Detailed Designs for selected sections of secondary and local roads to be formed, strengthened or widened.

15. The scope as defined include:

(a) Activity 1: Conduct a feasibility study of the selected road sections, carry out an analysis of various intervention options including strengthening and widening of roads to meet the transportation needs of the target regions and establish the feasibility of the project;

(b) Activity 2: Prepare detailed designs for the proposed strengthening, widening and of selected secondary and local roads.

16. To achieve the objectives, the Consultant will undertake the necessary surveys, investigations, studies, analysis and designs. The Consultant will prepare tender documents for the road sections, inclusive of, but not limited to, final detailed designs, bills of quantities, environmental and social management plans, technical specifications and conditions of contract.

17. Prepare the standards, estimate and approach for restoration of roads that need to be restored post laying of water and wastewater networks in select areas of the regions.

18. This assignment will be undertaken in two distinct but consecutive phases which will cover respectively Activity 1 and 2. Technical and Financial proposals should clearly reflect this phasing in the description of the scope of work, methodology, staffing and costing. The restoration costs will need to be provided for unit area basis based on appropriate design standards.

19. The consultant is also expected to coordinate with and provide support to ADB TA consultant teams in incorporating low carbon and climate resilient specification and costing in the detail designs as well as carrying out due diligence of the investment projects.

20. Approach: The services are to be conducted in accordance with generally accepted international standards and professional practices acceptable to the Client. The designs in

24 Appendix 1

general will follow as agreed with RD, the Georgian National Standard SST 72: 2009 “Standard on Geometrical and Structural Requirements for the Public Motor Roads of Georgia” or applicable standards and guidelines, which are applicable on the territory of Georgia. Prior to the commencing the detailed design, the consultant shall establish a set of design criteria and standards to be used and agreed on with the Client. The scope of work is understood to cover all activities necessary to accomplish the objectives of the consultancy, whether or not a specific activity is cited in these TOR. A participatory and consultative approach is to be adopted in the conduct of the services, which will contribute to their completion in as timely a manner as possible. The scope of services of the Consultant will include, but not be limited to, the following:

IV. FEASIBILITY STUDY

21. Review of all information of the initial concepts if any and information about carried out maintenance during the past 5 years from the responsible road maintenance units as far as available to determine the way forward.

(a) Collect and analyze all data required to achieve the overall and primary objectives of this consultancy. At minimum, the Consultant will be required to collect data and perform relevant analyses of the types as follows:

22. Traffic – traffic counts; traffic forecasts; origin-destination surveys; and axle loading testing of heavy vehicles. Traffic forecasts shall be derived for a design period of a minimum of 20 years beyond the date of expected completion of the proposed road works or 35 years for rigid pavement (to be defined by the feasibility and as approved by MDF). AADT values used in the design shall take into consideration seasonal factors and traffic generated as a consequence of the planned tourism development and other development projects planned in the project area.

23. Conduct cadastral and engineering surveys of the road corridor as defined by the client, establish project control monuments, and superimpose these data on current geo- referenced satellite imagery (to be procured by the Consultant and supplied to the Client) and presented in a format acceptable to the Client. UTM international coordinate system shall be used for the survey and must be linked with GEO-CORS bases of National Agency of Public Reregister of Georgia. This also is to include carrying out all other requisite engineering, topographical, geological, geotechnical and other relevant surveys and studies necessary to design the proposed works, including identification and assessment of potential sources of materials for the works.

24. Undertaking of a study of the groundwater, rainfall characteristics and hydrology of the project area to inform the design of the proposed works, including roadway drainage, culverts, bridges and other structures. This includes verification of the adequacy of the hydraulic capacity of the existing drains, culverts, etc. Unless otherwise accepted, storm water drainage shall be undertaken for a design storm with a return period of a minimum of 25 years for small structures and 50 years for big structures (bridges and culverts with openings of 4 m and above).

25. Update of a road inventory including all bridges, sidewalks, culverts, drainage elements, lighting, etc. A listing of all encroachments or obstacles within the right-of-way must be prepared for the project road.

26. Detailed assessment of the existing road surface conditions through visual inspection and other appropriate methods in terms of:

Appendix 1 25

(i) the extent of pavement distresses as defined in ASTM E1778 - 98a (2008); and (ii) the road surface roughness [ASTM E1926 - 08 or ASTM E1364 - 95(2005)].

27. Detailed assessment of the structural capacity of existing pavement structures along the entire alignment through the use of standard non- destructive testing methods in accordance with the Standard Guide for General Pavement Deflection Measurements [ASTM D4695 - 03(2008)]. Acceptable methods include the use of a Falling Weight Deflectometer or Benkelman Beam or other methods conforming to:

(i) the Standard Test Method for Deflections with a Falling-Weight-Type Impulse Load Device [ASTM D4694 – 09]; or (ii) the Standard Method of Test for Pavement Deflection Measurements [AASHTO T 256-01 (R2011)].

28. Sub-grade characteristics and strength: investigation of required sub-grade and subsoil characteristics and strength for road and embankment design and sub soil. Soil testing shall be based on the procedure of determination of MR is given AASHTO test method T274 or determine MR value from standard CBR, R value and soil index test results.

29. Detailed assessment of the condition and structural adequacy of the existing bridges, culverts and other structures along the selected sections of regional roads.

30. Conduct of Road Safety Audits (RSA) of the existing road alignments and any proposed alignment changes in accordance with the Road Safety Audit Guidelines. The consultants shall review the accident statistics in the project area and make recommendations for specific measures to address road safety concerns within the project. The RSA shall examine, among other things, potential improvements to the road alignment and geometry, road lighting, sidewalks, pedestrian crossings, traffic signals, road signage and markings, and parking. Prepared Road Safety Design will be subject of RSA conducted by Road Safety Division of RD.

31. Based on the surveys, studies and analysis, develop rehabilitation and improvement options including capacity augmentation to provide acceptable level of service over the design period

32. Facilitation of Stakeholders Workshop to assess the local communities’ views on the project; discuss design options, implementation and post-implementation impacts and mitigation measures and compile a stakeholders’ consultation report with recommendations for incorporation into final designs.

33. Preparation of a Social Impact Assessment in accordance with ADB`s Safeguard Policy Statement (SPS) 2009 and National Government`s Resettlement Policy. If required, prepare a Resettlement Action Plan (RAP) for each of the project road sections. The Social Impact Assessment Report shall cover at least:

(i) description of demographic, geographic and socio-cultural background (including occupational, gender and ethnic) of the project area; (ii) social and economic activities conducted in the project area and particularly along the roadway such as markets and agricultural produce, etc.;

26 Appendix 1

(iii) analysis of project stakeholders, potential direct and indirect impacts and social risks including differential gender impacts and issues in project design with possible social consequences, e.g. effects on livelihoods, disruption of social life and effects on pedestrian safety, etc.; (iv) recommendations on specific road safety measures and road safety education activities for road users as a whole and persons attending educational institutions located along the road; (v) recommendations on mitigation measures or alternative design features to address the potential adverse impacts identified, (vi) recommended measures for public awareness during the construction phase and for stakeholder participation during the implementation and operational stages of the project; and potential social and economic benefits of the project to the country, project area and stakeholders.

34. An Environmental Impact Assessment in accordance with ADB`s Safeguard Policy Statement (SPS) 2009 and National Government`s Environmental Policy shall be carried out by the Consultant. To classify the environmental impact, the REA checklist needs to be prepared. Depending on the identified category of environmental impact, an IEE/EIA Report has to be submitted under this assignment.

35. Inclusion, within the IEE/EIA, of an assessment of the direct and indirect environmental impacts due to the project’s construction activities and during its operations. The study should clearly identify the areas of impact, provide an assessment of potential impacts and mitigation measures and involve public consultations with affected people and other relevant stakeholders. It should include an Environmental Management Plan (EMP) and clear institutional arrangements for its implementation and monitoring.

36. In preparing the IEE/EIA as a minimum the following issues must be investigated:

(i) potential impacts on biodiversity including modified, natural, critical habitat and protected areas and necessary measures to minimize, mitigate and offset impacts; (ii) potential waste issues including hazardous materials and wastes and appropriate measures for their disposal, treatment and other forms of management; (iii) potential impacts of climate change and necessary adaption steps to accommodate climate change impacts into the project design; (iv) greenhouse gas emission levels with and without the project activities and measures that are technically and financially feasible to reduce or offset project related GHG emissions during project design, construction and operation stages; (v) occupational health safety issues and measures for the construction workers as well as the local communities in and around the project site; (vi) potential impacts on physical and cultural resources and measures to avoid, minimize or mitigate impacts; grievance redressal mechanism to address concerns and grievances of the affected people in the course of the project cycle.

A. Gender

37. The consultant will provide support to team leader on Road and institutional assessment tasks above from the social development perspectives and conduct comprehensive social

Appendix 1 27

assessment and preparation of and will (i) conduct socioeconomic surveys if needed, in collaboration with other specialists; (ii) review government policies and strategies for poverty reduction and gender mainstreaming; (iii) conduct a public perception survey to identify issues and development priorities; (iv) conduct a poverty, social, and gender assessment to collect a baseline socioeconomic data (including sex-disaggregated baselines and proxy data) on program beneficiaries which further can be used for monitoring and evaluation purposes; (v) prepare a poverty reduction and social strategy, and (vi) prepare a gender action plan and other social action plans.

38. Economic Analysis and Financial Due Diligence

39. Each package should include an economic analysis and financial analysis as per the requirements of the ADB. The economic analysis should be in accordance with ADB’s Guidelines for the Economic Analysis of the Projects (2017).1

40. Financial Analysis of Projects: In coordination with the economists, the financial management would include an FDD in accordance with ADB’s requirements,2 which include the following tasks: (i) conduct a financial management assessment of the implementing agency, including (a) assessing whether previous financial management assessments have been conducted by ADB or other agencies and, if so, reviewing the results and ascertaining whether these can be used as input, (b) assessing FM staffing and capacity for planning and budgeting, management and financial accounting, reporting, auditing, internal controls, and information systems (ii) reviewing proposed disbursement including any necessity or capacity for using advance procedure of the statement of expenditure procedures and funds-flow arrangements, (d) concluding on the financial management risk rating, (e) identifying risks arising from material deficiencies, and propose practical recommendations for improving financial management functions and/or staffing for financial operations needed to mitigate risks; (f) provide relevant detailed information to enable completion of the financial management sections, Risk Assessment and Risk Management Plan, and (g) explain to the government the financial management assessment, and relevant proposed financial risk mitigation measures; (iii) support the preparation and agreement of consolidated cost estimates for the ensuing projects and a financing plan, which are based on verifiable data and are sufficient to support project implementation; (iv) prepare financial projections and conducting financial analyses of the implementing agency, and incremental recurrent costs, to determine financial sustainability, and reviewing proposed cost-recovery and tariff policies, including affordability; (v) conduct financial evaluations (financial cost-benefit analyses) including sensitivity analyses of project components that have a cost-recovery objective; (vi) conduct financial sustainability and fiscal impact analysis with the emphasis on the availability of adequate financial resources to meet the incremental recurrent costs arising from the project, their ability to service ADB loan, and to provide the

1 ADB. 1998. Economic Analysis of Water Supply Projects. Manila; and ADB. 2017. Guidelines for the Economic Analysis of the Projects. Manila. 2 Refer to the following PFFM guidance material: (i) Technical guidance note (TGN) for Financial Management Assessment (2015), (ii) TGN (2015) for project financial reporting, and (iii) TGN (2014) for preparation of cost estimates, and eLearn module for Cost Estimates preparation and presentation.

28 Appendix 1

necessary counterpart funding during project implementation. This includes assessment of the financial status of the executing and implementing agencies in reference to their respective counterpart funding requirements for the project, where significant risks are identified to project financial sustainability or viability, propose relevant financial performance indicators to be incorporated in financial covenants; (vii) assess and reach agreement on financial reporting, auditing and public disclosure arrangements for the project, and, as appropriate, identify and agree on arrangements for receiving financial statements from executing agencies and implementing agencies and, (viii) prepare appropriate fund flow mechanism, disbursement schedule for projections of contract awards and disbursements; and standard cost estimates tables (in coordination with the Procurement specialist), and provide costing and financial forecasting data for the economic analysis (in coordination with Economist).

41. Preparation of preliminary designs and cost estimates for the proposed development/rehabilitation/improvement options for each project road section. The cost estimate shall include estimates of base costs and physical contingencies. Price contingencies for each year during implementation shall be included in line with the applicable ADB guidelines. The Consultant shall also prepare a draft implementation schedule for the project road sections and identify and assess project risks during implementation.

42. Analysis of the road construction, improvement and maintenance options using the current version of Highway Development and Management (HDM) to identify the relevant economic costs and benefits and determine the Net Present Value and Economic Rate of Return for the alternatives. An analysis period of 20 years and a discount rate of 9% are recommended. This work will include:

(i) Development of an input data set for performing HDM quantitative analyses of the road improvement and maintenance options, including collection of detailed information on the current vehicle fleet and vehicle operating costs for input analysis using the HDM model; (ii) Selection of a set of possible maintenance and construction policies and define the strategies to be employed; (iii) Providing detailed calculations of any exogenous costs/ benefits for input into the model; (iv) Calibrating the HDM-4 model for the project road; and (v) Evaluation of alternative rehabilitation, construction and maintenance strategies for the project road sections using the current HDM version. The evaluation will be conducted in terms of economic costs which will be derived from financial prices obtained by the consultants. Road user costs with and without the project should be estimated with the use of HDM. The intervention option which performs best, shall be determined, considering strengthening and widening options, if applicable.

43. Developing a Monitoring and Evaluation framework for the project, including, but not limited to, the identification of indicators, establishment of targets, identification of suppliers of data and users of the system and stakeholder consultation.

Appendix 1 29

V. DETAILED DESIGN

44. Subject to the prior approval of the Client on the project design option and design standards to be adopted, the Consultant shall:

(a) Prepare detailed designs for the project, including the roadway, sidewalks, drains, bridges, culverts and lighting, etc. based on the findings of the Feasibility Study. The designs shall submit detailed descriptions of the recommended works with scope, design standards, method, calculations, results, etc.

45. Prepare complete set of bidding documents for tendering in accordance with the Guidelines for Procurement by ADB. The bidding documents shall include, but not be limited to: a description of the recommended works (with their scope, methods, results, calculations etc.); and final detailed drawings, specifications and Bills of Quantities for tendering. The final designs must be detailed and complete for the following, at a minimum: (i) Geometric design showing alignment and elevations for the roadways and all other features inclusive of those for road safety, property access to the roadway, drainage, etc.; (ii) Pavement design, and embankment design as required, for sections of the roadways to be repaired, rehabilitated, reconstructed or constructed from new; (iii) Structural design for bridges, culverts, revetments, river defense works etc. to be repaired, rehabilitated, reconstructed or constructed from new (iv) Hydraulic and structural design for drainage structures; (v) Design and costing for relocation of utilities which must be approved by each utility company; (vi) Environmental & Social Management Plan required for the construction (vii) Gender Action Plan (viii) Economic analysis of sub projects (ix) Financial due diligence

46. Drawings: All drawings forming part of this volume shall be ‘good for construction’ drawings. All plan and profile drawings will be prepared in scale 1:200V and 1:2000H scale. In addition, this volume will contain ‘good for construction’ drawings for the following: (i) Location Map (ii) Horizontal Alignment and Longitudinal Profile. (iii) Cross-section @ 50m interval along the alignment within ROW (iv) Typical Cross-Sections with details of pavement structure. (v) Detailed Working Drawings for individual Culverts and Cross-Drainage Structures. (vi) Detailed Working Drawings for individual Bridges, tunnels and Structures. (vii) Detailed Drawings for Improvement of At-Grade and Grade-Separated Intersections (viii) and Interchanges. (ix) Drawings for Road Sign, Markings, and other Facilities. (x) Schematic Diagrams (linear chart) indicating but be not limited to be following: ▪ Widening scheme; ▪ Locations of median openings, intersections, interchanges, underpasses, overpasses, bypasses; ▪ Locations of service roads; ▪ location of traffic signals, traffic signs, road markings, safety features; and, ▪ Parking areas, weighing stations, bus bays, rest areas, if any.

30 Appendix 1

(xi) Drawings for Bus Bays, Parking areas, Rest areas, weighing stations etc. The format for plan, cross-section and profile drawings shall be finalized in consultation with the client. The drawings shall also include details of all BM and reference pillars, HIP and VIP. The drawings shall also include the locations of all traffic safety features including traffic signals, signs, markings, crash barriers delineators and rest areas, bus bays, parking areas etc. (xii) The typical cross-section drawings should indicate the scheme for future widening of the carriageway. The proposed cross-sections of road segment passing through urban areas should indicate the provisions for pedestrian movements and suitable measures for surface and sub-surface drainage and lighting, as required.

47. Prior to submission of the detailed design documentation, the size, layout and scale of the detailed design drawings shall be agreed upon with the Client.

VI. PROCUREMENT ASSISTANCE

48. Prior to bid submission for the civil works contract packages, the consultants will:

(i) In consultation with the TL, define the best option for implementation of the packages. (ii) Finalize the bidding documents, and evaluation and qualifications criteria, and assist RD in obtaining approval from ADB. (iii) Assist RD issue approved bid documents to eligible contractors, and assist RD in the pre-bid meetings, answer contractor queries, and issue bid addenda as necessary.

49. Following submission of bids, the consultants if necessary will assist RD to:

(i) Carry out qualification evaluation of the bidders without opening the financial bids, and recommend qualified contractors. (ii) Evaluate the financial proposal of the qualified contractors. (iii) Undertake contract negotiations and in preparation and signing of final contract documents with successful bidders. (iv) Obtaining necessary approvals from ADB and other agencies.

VII. DURATION OF THE CONSULTANCY3

50. Overall duration is 9 months. The duration of activity 1 - feasibility study – is 6 months from the date of contract signing inclusive of time for the Client to review and approve the reports (around ten calendar days for each report). For activity 2 – preparation of detailed design and tender documents – a period of 12 months from the approval of the Draft Feasibility Report is expected, including the time required for the Client to review and approve the reports. However, consultants are expected to deliver priority packages for implementation by RD.

3 Duration of Assignment will be defined after finalization of ToR before announcement of procurement.

Appendix 1 31

VIII. REPORTING REQUIREMENTS4

51. The consultant will present two (5) hard copies in English, two (5) hard copies in Georgian and one (1) soft copy (together with editable files) of each report in each language to the Client. These reports are as follows:

(c) Inception Report: - The Inception Report will be presented within 1 month after the signing of the contract, and it will include: (i) Initial Findings; and (ii) Consultants’ detailed work schedule and methodology, including

(d) Feasibility Study Report: - The Draft FS Report will be presented 3 months after the signing of the contract. The report will: (i) Present the updated and comprehensive results of the surveys, investigations, and studies conducted. Individual reports may be submitted in respect of discreet subject matter; (ii) Present and analyze the alternatives; (iii) Identify environmental, social and gender issues, and cost mitigation measures; (iv) Estimate life cycle cost of alternatives; and (v) Present preliminary designs and construction cost estimates.

(e) Detailed Design Report and Tender Documents: - The Draft Detailed Design Report will be submitted within 4 months of receipt from the Client of approval of the Draft FS Report. The Report should: (i) Finalize the information presented in the FS Report and include a clear recommendation for the intervention option supported by quantitative analysis using the current HDM model; (ii) Initial Environmental Examination (IEE)/EMP and Resettlement Plans; (iii) Economic analysis and financial due diligence; (iv) Detailed designs and cost estimates; and (v) Bid Documents.

(f) Other Reports: - Other specific reports shall be submitted in the course of the project as requested by the Client, e.g. IEE/EIA, SIA, RAP etc.

52. Documents produced by the Consultant as part of these services will be subject for the review and approval of the Client and external organizations/experts. The estimated time for revision and issuing the comments on submitted reports is 10 calendar days.

53. Within 14 days after receipt of comments from the Client on the Draft Reports, the Consultant shall present the Final Report.

IX. QUALIFICATIONS AND EXPERIENCE5

54. All of the members of the consulting team must have excellent communication and interpersonal skills and they must be fluent in English. The key experts required for the

4 Reporting requirements and staging will be defined after finalization of ToR before announcement of Procurement. 5 Qualification and experience requirements will be defined after finalization of ToR before announcement of Procurement.

32 Appendix 1

Consultant’s team and their minimum qualifications and experience and minimum input are as follows:

55. Members of the consultancy team must have working experience in developing countries. Staff should be fluent in written and spoken English, fluency in Georgian would be an advantage. All team members must be present in Georgia when conducting their assignments.

No. Position Qualificatio Person n months I International Experts 1 Team The Team Leader shall be a qualified and competent highway 10 Leader/Transport engineer with a recognized degree in Civil Engineering and a Engineer minimum of 15 years of active international professional experience, with at least 10 years on highway design in construction and upgrading projects at a Team Leader level. Experience of working with former Soviet and other international standards will be an asset. He must have proven ability to manage and administer a project of this nature, and extensive experience in highway planning, design and contract administration. 2 Transport The Transport economist shall be a qualified and competent 1 Economist person with a degree in Transport Economics or equivalent and a minimum 15 years of professional experience, with at least 5 years have been in undertaking feasibility studies in highway construction and upgrading projects 3 Pavement The Pavement Engineer shall be a qualified and competent 3 Engineer civil engineer with a degree in Civil Engineering and a minimum of 12 years of professional experience, with at least 8 years as a Pavement Design Engineer on Highway design projects. 4 Senior The Hydrological Engineer shall be a qualified and competent 2 Hydrological civil engineer and a minimum of 12 years of professional Engineer experience, with at least 8 years of proven experience in the highway design projects. 5 Senior Highway Civil engineer with a degree in Civil Engineering and a 3 Engineer minimum of 12 years of professional experience, with at least 8 years as a Highway Design Engineer in construction and upgrading projects. 6 Senior Bridge The Senior Bridge Engineer shall be a qualified and 2 Engineer competent civil engineer with a degree in Civil Engineering and a minimum of 12 years of professional experience, with at least 8 years as a Highway Bridge Engineer on highways construction and upgrading design projects. . 7 Procurement The Procurement Specialist shall be a qualified and 2 Specialist competent expert in procurement of contracts and a minimum of 10 years of active professional experience. Experience in procurement of contracts under the ADB procurement procedures would be an asset. Sub Total 23

Appendix 1 33

No. Position Qualificatio Person n months II National Experts 1 Pavement The Pavement Engineer shall be a qualified and competent civil 6 Engineer (2) engineer with a degree in Civil Engineering and a minimum of 12 years of professional experience, with at least 8 years as a Pavement Design Engineer on Highway design projects. 2 Senior The Hydrological Engineer shall be a qualified and competent 3 Hydrological civil engineer and a minimum of 12 years of professional Engineer experience, with at least 8 years of proven experience in the highway design projects. 3 Senior Highway Civil engineer with a degree in Civil Engineering and a 6 Engineer (2) minimum of 12 years of professional experience, with at least 8 years as a Highway Design Engineer in construction and upgrading projects. 4 Senior Bridge The Senior Bridge Engineer shall be a qualified and 4 Engineer competent civil engineer with a degree in Civil Engineering and a minimum of 12 years of professional experience, with at least 8 years as a Highway Bridge Engineer on highways construction and upgrading design projects. . 5 Procurement The Procurement Specialist shall be a qualified and 3 Specialist competent expert in procurement of contracts and a minimum of 10 years of active professional experience. Experience in procurement of contracts under the ADB procurement procedures would be an asset. 6 Quantity Surveyor/ Graduate in quantity surveying or civil engineering with 3 Specifications preferably 10 years of overall experience in the preparation of Specialist bills of quantities and cost estimation, out of which 3 years should be in water supply projects. 7 Geotechnical Post graduate qualification in geotechnical engineering with 3 Engineer preferably 10 years of overall experience in soil survey and analysis. 8 Road safety Graduate in engineering with around 10 years of experience in 2 Engineer Road Safety measures of urban and regional context including traffic education measures 9 Transport The Transport economist shall be a qualified and competent 2 Economist person with a degree in Transport Economics or equivalent and a minimum 15 years of professional experience, with at least 5 years have been in undertaking feasibility studies in highway construction and upgrading projects 10 Financial Masters in Business Management, Finance, Cost/ Chartered 2 Management and Accounting/ CPA/ACCA with experience in financial due assessment diligence, with around 10 years’ experience in infrastructure project financial analysis and financial management assessment of the implementing agency 11 Environmental The Environmental Specialist shall be a qualified and 3 Specialist competent expert in environmental impact assessment of road projects and a minimum of 10 years of professional experience. Experience in environmental impact assessment under the ADB procedures would be an asset

34 Appendix 1

No. Position Qualificatio Person n months 12 Social Safeguards The Social Safeguards Specialist shall be a qualified and 3 Specialist competent expert in social impact assessment and preparation of resettlement action plans and a minimum of 10 years of professional experience. Fluency in both written and spoken English is required. Experience in the ADB social safeguards assessment procedures would be an asset 13 Gender Specialist Advanced/ Masters Degree in Gender, Sociology, 3 Anthropology, Development Studies, or other related Social Science fields with around 10 years of professional level experience in gender mainstreaming, analysis, research, designing gender policies, strategies, guidelines, and training manuals and regional, national and local level experience, and substantial knowledge of the social and gender issues. Experience with ADB or World Bank project a necessity 14 CAD Engineers (3) Degree / Diploma with 10 years of relevant experience 12

Sub-total 55 Total 78

56. The minimum total time input in terms of person months is 19 for international and 54 for national key experts.6

X. COORDINATION AND FACILITIES

57. The Ministry of Regional Development and Infrastructure through the RD is the executing agency for the Consultancy. The Consultant shall report to the Coordinator of the RD. RD will facilitate the issuance of any permits required for the Consultant to carry out their duties and make available all relevant reports, documents, maps and data.

58. The Consultant team members are expected to utilize their own office space, computers and software to complete the assignment

6 Qualification and experience requirements will be defined after finalization of ToR before announcement of Procurement Appendix 1 37

ATACHMENT 1: Tentative List of Sub Projectsa Tranche Activity Kms All 1 3 N Khaketi Upgrade Road Network - for improved connections and reduced travel time Essential (new) access roads Akhmeta Municipality - Local Roads (including 2 km, Guramishvili St, 2 km, Odzelashvili St, and 1.5 km, Bitani St. in Akhmeta and others) 10 10 Sub Total 10 0 10 Alignment upgrading Telavi Municipality - Telavi centre By-Pass 7 7 Telavi Municipality - new Road Napareuli to Telavi, + bridge 10 10 Sub Total 0 17 17 Post WSS remedial works Akhmeta Municipality - Roads within Matani, after WSS works 4 4 Akhmeta Municipality - Roads within Maghraani, after WSS works 2 2 Akhmeta Municipality - Roads within villages, after WSS works 10 10 Gurjaani Municipality - Roads within Velistsikhe, after WSS works 4 4 Gurjaani Municipality - Roads within Zagaani, after WSS works 4 4 Gurjaani Municipality - Roads within villages, after WSS works 10 10 Telavi Municipality - Roads within Kurdghelauri, after WSS works 3 3 Telavi Municipality - Roads within Vardisubani, after WSS works 3 3 Telavi Municipality - Roads within villages, after WSS works 7 7 Sub Total 27 20 47 Total New Works 10 17 27 Total Rehabilitation/ Restoration 27 20 47

ZUGDIDI Upgrade Road Network - for improved connections and reduced travel time 0 0 0 Alignment upgrading 0 Municipal Roads/Bridges (evaluate current plan v. improve 3 existing axes/extend outer loop) Additional cross-town bridge across Chkhoushi river 1 1 Vehicle Traffic alleviation in Town Centre / Train station area; extend ring road in Zugdidi 10 10 Upgrade Road Network - for improved connections and reduced travel time 0 Essential (new) access roads 0 Tsaishi road renewal 2 2 Post WSS remedial works 0 Roads in 4 Villages, after WSS works 8 8 Roads in 44 Villages, after WSS works 88 88 Roads in Khobi, after WSS works 4 4 Sub Total 12 88 100 Mestia Essential (new) access roads Road to Tskhuman 15 15 Road to Tsvirimi 3 3 38 Appendix 1

Tranche Activity Kms All 1 2 Road to Adishi 5 5 Roads to Mulakhi 30 30 Roads in Lenjeri 15 15 Roads in Leli 12 12 Road to Kheledi, from Lentekhi 7 7

Demonstration of wheel-track paving in Mestia-Lenjeri (1 km) and Lentekhi (1 km) 2 2 Sub Total 2 87 89 Alignment upgrading Main Access Road - security nets 1 1 Main Access Road - bridge bypass (at reservoir) 2 2 Main Access Road - bridge bypass (at Becho switchback) 2 2 Sub Total 1 4 5 Post WSS remedial works Roads in Lenjeri, after WSS works 2 2 Roads in Mulakhi - Lahiri, after WSS works 4 4 Roads in Ushguli, after WSS works 4 4 Roads in Latali, after WSS works 2 2 Roads in Becho, after WSS works 2 2 Roads in Villages, after WSS works 10 10 Lentekhi - roads in Villages, after WSS works 2 2 Lentekhi - roads in Villages, after WSS works 5 5 Sub Total 16 15 31 a Final list of roads will be defined after finalization of ToR before announcement of procurement.

Appendix 1 39

PACKAGE 3: GEORGIA LIVABLE CITIES INVESTMENT PROGRAM- MDF COMPONENTS

PACKAGE 3A: TERMS OF REFERENCE FOR DESIGN OF TOURISM DESTINATION AND ASSOCIATED FACILITIES IN THE PRIORITY REGIONS OF GEORGIA 40 Appendix 1

PACKAGE 3A: GEORGIA LIVABLE CITIES INVESTMENT PROGRAM TERMS OF REFERENCE FOR DESIGN OF TOURISM DESTINATION AND ASSOCIATED FACILITIES IN THE PRIORITY REGIONS OF GEORGIA

I. OVERVIEW

1. Tbilisi, the capital city of Georgia, contributes 70% of the national GDP, with just half of its urban population.1 The city’s urban population also increased from 47% to 51% of the country’s total between 2007 and 2017, while secondary cities in the regions of Kakheti and Samegrelo-Zemo Svaneti experienced declines in urban population during the same period. The reverse trend highlights issues such as out-migration, unbalanced economic growth, limited employment opportunities and poor livability of these urban regions. ADB undertook a National Urban Assessment (NUA) in 2015 that identified the need for balanced regional development to unlock the potential for inclusive economic growth through urban development by adopting multiple strategies, new initiatives, and innovative funding mechanisms at the national and regional level through integrated urban investment planning.2

2. The Asian Development Bank (ADB) and the Government of Georgia (GoG) reoriented urban sector operations to provide integrated and programmatic solutions for developing livable cities in Georgia that are economically competitive, socially inclusive, and environmentally resilient.3 Since November 2016, ADB has supported the government to mainstream an integrated and participatory approach to urban development by improving strategic planning of selected urban area clusters to achieve a more balanced regional development by preparing Integrated Urban Action Plans (IUAPs).4 Building on this, the government has prioritized crucial urban investments for ADB to take forward through feasibility studies and safeguards due diligence. These include integrated solutions that bring co-benefits to the citizens in the development of the urban clusters including water supply, sewerage and sanitation (including off-network solutions), urban transport and mobility (including nonmotorized and public transport), solid waste management, economic corridors, cultural and historical heritage conservation, flood control and drainage, urban safety and resilience, among others.

Appendix 1 41

10. The management arrangement for this assignment is presented in Fig 1.

5 https://www.adb.org/sites/default/files/institutional-document/435391/strategy-2030-main- document.pdf. 42 Appendix 1

Appendix 1 43

Fig.1: LCIP- PRF Implementation Arrangements

44 Appendix 1

11. This investment program will cover a range of improvements to the destination and associated facilities and services, and will be managed by the Municipal Development Fund (MDF) of Georgia.

II. THE OBJECTIVES

12. The objective of this assignment is to package the list of activities for the three regions into a thematic tourist attraction with associated components focused on livelihood, quality of life related interventions and tourist related services and facilities. The consultant is expected to coordinate with and provide support to ADB TA consultant teams in incorporating low carbon and climate resilient specification and costing in the detail designs as well as carrying out due diligence of the investment projects.

III. SCOPE OF WORK AND PROCESS

13. Services to be carried out is four Stages for each of the three regions.

Stage 1 Preparation of Concept Plan Stage 1B Surveys, investigations and draft designs. Stage 2 Detail design, cost estimations and draft IFB document Stage 3 Procurement Support

Stage 1 A: Preparation of Concept Plan

14. Based on situation analysis of the destination/cluster and its potential, prepare a plan that integrates, and sequences development activities contemplated, including a preliminary packaging of activities in a way that presents an integrated set of experience and convenience to the visitor as well as needs of the community in terms of improvement in quality of life and access to livelihood opportunities. Essentially the development elements should not be viewed in terms of sector/ in isolation but in a manner by which each element compliments the other to make the destination attractive. (Attachment 1 to be read with respective IUAP’s). The IUAP should be the base but the plan can look at activities beyond the suggested activities as long as it adds value to the program/ destination (s) objectives. The Plan should address:

(i) Destination improvements (Natural, Historic Monuments, cultural or sports facility), in terms of restoration, rehabilitation or re-development; (ii) Associated basic environmental services to be provided such as water, wastewater, storm water and waste management arrangements; (iii) Skill/ trade support facility needs such as technical incubators, handicraft centres, kiosks, information centre; (iv) Need for public sanitation facilities such as comfort stations; (v) Quality improvements such as beautification, landscaping etc.; and (vi) improvements required to enable access such as roads, paved footpaths, treks and trails, and associated facilities such as parking, signage, and street lighting.

Stage 1B Surveys, Investigation and Preliminary Designs

15. Based on approved concept plan, initiate surveys and investigation in parallel for the proposed improvements.

Appendix 1 45

Stage 2 Preparation of Detail Design and Estimates A. Technical: (i) For the activities as part of the theme, prepare technical designs, drawings and detailed costs. Cost should clearly indicate components to be bid, components that would be implemented by other agencies as deposit work and provisional sums to initiate unforeseen tasks as part of each contract package (See Attachment II for detailed requirements in the DPR); (ii) Costs should include costs of environmental management if any; (iii) Contract packages that reflect the theme as outlined in Step 1; (iv) O&M arrangements including costs and arrangements; (v) Prepare IFB Documents- would be embedded O&M contracts for a minimum period of 5 years and wherever not possible, estimates should be provided to enable agency in engaging service contracts for O&M; and (vi) Define specific activities that can be leased and develop appropriate lease agreements for individual/ community management.

B. Safeguards (a) Based on the surveys, studies and analysis, develop rehabilitation and improvement options including capacity augmentation to provide acceptable level of service over the design period Facilitation of Stakeholders Workshop to assess the local communities’ views on the project; discuss design options, implementation and post- implementation impacts and mitigation measures and compile a stakeholders’ consultation report with recommendations for incorporation into final designs. (b) Preparation of Due Diligence Report in accordance with ADB`s Safeguard Policy Statement (SPS) 2009 and National Government`s Resettlement Policy. Due Diligence Report shall cover at least Analysis of project stakeholders, potential direct and indirect impacts and social risks including differential gender impacts and issues in project design with possible social consequences, e.g. effects on livelihoods, disruption of social life and effects on pedestrian safety, etc. A due diligence needs to be conducted on the design to determine any impacts If there are none, this will be the conclusion of the due diligence. Otherwise, a Social Impact Assessment or LARP. (c) Preparation of a Social Impact Assessment in accordance with ADB`s Safeguard Policy Statement (SPS) 2009 and National Government`s Resettlement Policy or prepare a Land Acquisition and Resettlement Plan (LARP) (if needed), including implementation-ready LARP or/and Addendums for each project area and/or ROW. The plan shall fit the requirements of the ADB Safeguards Policy update (2009) and relevant Georgian law/regulation. For this purpose, the Consultant will procure the following survey expertise: (i) a survey team with sufficient personnel/capacity to carry out the needed surveys, and; (ii) A certified assets valuator to assess the market value/replacement cost of affected items.

(d) The LARP will be based on a final project alignment, provide final compensation budgets and require the following:

(i) Definition of compensation entitlements and eligibility provisions fitting ADB Safeguards Policy update (2009) and relevant Georgian law/regulation of a land privatization/legalization scheme acceptable to ADB and Government

46 Appendix 1

(ii) Carry out detailed measuring works within the affected corridor: identify project affected land plots; verify status of land parcels (registered in Public Registry; unregistered legalizable; unregistered non-legalizable; state owned and other), Recheck/verify land status and request land status recognition document as with representatives of local government as well as at National Agency of Public Registry to recognize exact size of land plot. Prepare measurement cadastral drawings and dividing drawings in case of partial acquisition of the land. Conduct the first stage registration of impacted land parcels and divide (and register) them according to the original ROW or Project area. Already divided and properly registered land parcels shall be provided to the MDF stage by stage. Additionally provide to MDF cadastral drawings for state land registration.

(iii) a detailed measurement survey of all impacts;

(iv) census of all Affected Families (AF) and Affected People (AP) including full identification of all vulnerable and severely affected AF and of all AP by gender and ethnic group. Identify/verify project affected land owners/tenures: identification/verification process shall be carried out in close collaboration with contractor and the representatives of local government. It should be based on information and materials furnished by them about land owners/tenures.

(v) In the presence and with the participation of identified land owners/tenures, representatives of local government (and contractor if any) (confirm with signature) carry out inventory/census of each project affected land parcel and attached buildings/structures (if any) by utilization of preliminary worked out Inventory Form. Prepare measurement drawing for each building/structure. Relevant photo feature (project affected land plot, building/structure, annual and perennial plants of assessed property) for each affected land plot shall be provided. Photos taken by digital camera have to be provided with date on it.

(vi) a socio-economic census of the affected population based on a 50% sample of the AF

(vii) a full survey of the market rates/replacement cost of affected assets. Independent IVS licensed valuator (expert-audit) shall process data obtained during field survey/inventory. On-site study/survey of data through field visits and verify/calculate unit price as well as total price for each land category, annual/perennial plants and timber trees, plantings and building/structures. Land shall be assessed based on market prices. During assessment of land parcels calculation of market value have to be based on sales comparison approach. Building/Assets have to be assisted based on cost approach” methodology.

(viii) provide cadastral drawings for each land owner and inventory forms including divided land parcels During preparation and implementation LARP

Appendix 1 47

(ix) a schedule action plan for LARP implementation and land privatization (if privatization of land plots is needed);

(x) an intensive information and consultation campaign with the AF through meetings to be held in each group and through the disclosure of information materials to be prepared in Georgian and English.

(xi) the establishment of a complaints and grievances mechanism fitting the LARF and acceptable to ADB and Government.

(xii) The consultant will draft the LARP in English and Georgian and will prepare/draft relevant sections of the PFR documents as needed.

(xiii) The consultant will assist as needed the EA in the disclosure of the LARP and information pamphlets and in training the EA LAR unit.

(e) In case of need, the Consultant will correct the documents in compliance with the recommendations and remarks released by ADB. The Consultant will prepare responses to that remarks, etc. He will update the documents and carry out all other activities required by MDF as per Social Safeguards Policy of ADB.

C. Environmental

(f) The Consultant shall identify whether a project requires Environmental Impact Assessment, Initial Environmental Examination or any other relevant environmental documentation in accordance with the ADB’s Safeguards’ Policy (SPS 2009) as well as Georgian legislation. If a project is a subject of any of the abovementioned environmental documentation, the Consultant shall prepare the relevant documentation in accordance with the ADB’s Safeguards’ Policy (SPS 2009) as well as Georgian legislation after receiving a written concept from MDF. (g) If a project is not a subject of EIA neither according to ADB’s Safeguards’ Policy (SPS 2009) nor Georgian legislation, the Consultant shall prepare Environmental Management Plan and Due Diligence Report including but not limited to the following information: • Information on topographic, geological and hydrological indicators (terrain, geology, land, based on archival materials and visual research; information on the location of hazardous geological processes in groundwater, etc.); • Distance to groundwater (rivers, canals, etc.); • Potential sites where excess materials / excess ground, construction waste can be located, brief description of proposed sites (including cadastral information) and a map; • Location and distance of nearest quarries to the project area; • Underground and above-ground linear communications occurring in the road corridor; • Land ownership and land use issues: a) Cadastral information of the project area; B) Formally verified information Does the project affect privately owned property? • Description of short socio-economic conditions in the vicinity of the project area; • Description of species of vegetation and flora, identified by botanical and zoological research of Red List species. If the sub-project requires tree felling, the Contractor shall provide all necessary information and tree 48 Appendix 1

registration forms to obtain a tree felling permit. • Information about topsoil removal and disposal with the relevant permissions and approvals from the responsible authorities. • Information on Emerald Sites with the relevant appropriate assessment submitted and agreed with the relevant authorities; • Any other information about the project related impacts with the relevant mitigation measures. (h) If needed, an Environmental Impact Assessment in accordance with ADB`s Safeguard Policy Statement (SPS) 2009 and National Government`s Environmental Policy shall be carried out by the Consultant. To classify the environmental impact, the REA checklist needs to be prepared. Depending on the identified category of environmental impact, an IEE/EIA Report has to be submitted under this assignment. (i) Inclusion, within the IEE/EIA, of an assessment of the direct and indirect environmental impacts due to the project’s construction activities and during its operations. The study should clearly identify the areas of impact, provide an assessment of potential impacts and mitigation measures and involve public consultations with affected people and other relevant stakeholders. It should include an Environmental Management Plan (EMP) and clear institutional arrangements for its implementation and monitoring. (j) In preparing the IEE/EIA as a minimum the following issues must be investigated: (i) potential impacts on biodiversity including modified, natural, critical habitat and protected areas and necessary measures to minimize, mitigate and offset impacts; (ii) potential waste issues including hazardous materials and wastes and appropriate measures for their disposal, treatment and other forms of management; (iii) potential impacts of climate change and necessary adaption steps to accommodate climate change impacts into the project design; (iv) greenhouse gas emission levels with and without the project activities and measures that are technically and financially feasible to reduce or offset project related GHG emissions during project design, construction and operation stages; (v) occupational health safety issues and measures for the construction workers as well as the local communities in and around the project site; (vi) potential impacts on physical and cultural resources and measures to avoid, minimize or mitigate impacts; (vii) grievance redressal mechanism to address concerns and grievances of the affected people in the course of the project cycle.

16. The abovementioned conditions of the Safeguards and Environmental issues shall apply as well to the 3B and 3C sections of the document, if needed.

D. Gender

17. The consultant will provide support to team leader on Road and institutional assessment tasks above from the social development perspectives and conduct comprehensive social assessment and preparation of and will (i) conduct socioeconomic surveys if needed, in collaboration with other specialists; (ii) review government policies and strategies for poverty reduction and gender mainstreaming; (iii) conduct a public perception survey to identify issues and development priorities; (iv) conduct a poverty, social, and gender assessment to collect a baseline socioeconomic data (including sex-disaggregated baselines and proxy data) on program beneficiaries which further can be used for monitoring and evaluation purposes; (v) prepare a poverty reduction and social strategy, and (vi) prepare a gender action plan and other social action plans. Appendix 1 49

E. Economic Analysis and Financial Due Diligence

18. Each package should include an economic analysis and financial due diligence as per the requirements of the ADB. The economic analysis should be in accordance with ADB guidelines, including the Economic Analysis of Water Supply Projects (1998) and the Guidelines for the Economic Analysis of the Projects (2017).24

19. Financial Management Assessment: In coordination with the economists, the financial management would include an FDD in accordance with ADB’s requirements,25 which include the following tasks: (i) conduct a financial management assessment of the implementing agency, including (a) assessing whether previous financial management assessments have been conducted by ADB or other agencies and, if so, reviewing the results and ascertaining whether these can be used as input, (b) assessing FM staffing and capacity for planning and budgeting, management and financial accounting, reporting, auditing, internal controls, and information systems (ii) reviewing proposed disbursement including any necessity or capacity for using advance procedure of the statement of expenditure procedures and funds-flow arrangements, (d) concluding on the financial management risk rating, (e) identifying risks arising from material deficiencies, and propose practical recommendations for improving financial management functions and/or staffing for financial operations needed to mitigate risks; (f) provide relevant detailed information to enable completion of the financial management sections, Risk Assessment and Risk Management Plan, and (g) explain to the government the financial management assessment, and relevant proposed financial risk mitigation measures; (iii) support the preparation and agreement of consolidated cost estimates for the ensuing projects and a financing plan, which are based on verifiable data and are sufficient to support project implementation; (iv) prepare financial projections and conducting financial analyses of the implementing agency, and incremental recurrent costs, to determine financial sustainability, and reviewing proposed cost-recovery and tariff policies, including affordability; (v) conduct financial evaluations (financial cost-benefit analyses) including sensitivity analyses of project components that have a cost-recovery objective; (vi) conduct financial sustainability and fiscal impact analysis with the emphasis on the availability of adequate financial resources to meet the incremental recurrent costs arising from the project, their ability to service ADB loan, and to provide the necessary counterpart funding during project implementation. This includes assessment of the financial status of the executing and implementing agencies in reference to their respective counterpart funding requirements for the project, where significant risks are identified to project financial sustainability or viability, propose relevant financial performance indicators to be incorporated in financial covenants; (vii) assess and reach agreement on financial reporting, auditing and public disclosure arrangements for the project, and, as appropriate, identify and agree on arrangements for receiving financial statements from executing agencies and implementing agencies and, (viii) prepare appropriate fund flow mechanism, disbursement schedule for projections of contract awards and disbursements; and standard cost estimates tables (in coordination with the Procurement specialist), and provide costing and

24 ADB. 1998. Economic Analysis of Water Supply Projects. Manila; and ADB. 2017. Guidelines for the Economic Analysis of the Projects. Manila. 25 Technical guidance note for Financial Management Assessment (2015). 50 Appendix 1

financial forecasting data for the economic analysis (in coordination with Economist).

Step 3 Procurement Packages

(i) Definition of the best implementation options for packages such as DBO, build and operate etc, (ii) Definition of packages in terms of themes are proximity or any other criteria to reflect the development theme for the cluster(s)/site (s) (iii) CRAM Sheet for each package

Step 4 Procurement Assistance

20. Prior to bid submission for the civil works contract packages, the consultants will: (i) Finalize the bidding documents, and evaluation and qualifications criteria, and assist MDF in obtaining approval from ADB. (ii) Assist MDF issue approved bid documents to eligible contractors, assist MDF in the pre-bid meetings, answer contractor queries, and issue bid addenda as necessary.

21. Following submission of bids, the consultants will assist MDF to: (i) Carry out qualification evaluation of the bidders without opening the financial bids, and recommend qualified contractors. (ii) Evaluate the financial proposal of the qualified contractors. (iii) Undertake contract negotiations and in preparation and signing of final contract documents with successful bidders. (iv) In obtaining necessary approvals from ADB and other agencies.

IV. REPORTING AND SCHEDULE

22. Tentative time for this assignment is 9 Months. The reporting schedule is as follows:

(i) Stage 1 - Within 4 (Four) weeks from the commencement of service provision, the Consultant will provide the Client survey works and design concept development; (ii) Stage 1A: Within 8 (Eight) weeks from the commencement of service provision, the Consultant will provide Draft Design documentation; (iii) Stage 2 - Within 24 (Twenty-Four) weeks from the commencement of service provision Consultant will provide Client Final Detailed Design documentation and document confirming that the project had been agreed with the local Municipality and with Agency of Protected Areas, and (iv) Stage 3 in terms of procurement services will continue for up to completion.

23. At every stage, within one-week period following submission of the documentation, the Employer will furnish the consultant with its remarks within 10 days. The consultant shall consider the above-mentioned for the following stage and introduce the respective amendments to the design documentation

V. CONTRIBUTION OF THE CLIENT

24. The Client will provide the Consultant with all available material that may be required for service execution.

Appendix 1 51

VI. FORMAT AND PLACE OF SERVICE DELIVERY

25. The reports for all stages of service shall be submitted in writing.

26. Final documents of design-cost estimate along with the Bidding material shall be prepared in Georgian and English language and submitted in soft copy format (MS Word and Excel, whilst the graphical part will be submitted in AutoCAD or ArchiCAD formats). It is mandatory also the drawings to be provided in PDF format. The documents shall be provided on CDs (either CDs or DVDs). These documents are to be provided also as albums - 4 (four) copies (formats: A4 and A3).

VII. STAFFING

27. All of the members of the consulting team must have excellent communication and interpersonal skills and they must be fluent in English. The key experts required for the Consultant’s team and their minimum qualifications and experience and minimum input are as follows:

28. Members of the consultancy team must have working experience in developing countries. Staff should be fluent in written and spoken English, fluency in Georgian would be an advantage. All team members must be present in Georgia when conducting their

assignments.

No. Position Qualification Person Field months I International Experts 1 Team leader Degree in Civil Engineering/ Architecture/ Urban 10 10 /Engineer Planning with around 20 years’ experience in design of urban infrastructure/Tourism development projects 2 Road engineer/ Civil Engineer with 15 years’ experience in Road and 2 1 Transport Transport infrastructure design. Designing, Engineer experience of implementation of similar size and type projects (urban roads, pedestrian facility, area traffic management and road safety) 3 Topographer Civil Engineering preferably with specialization in 1 0.75 Geodesy/ Topography. Around 15 years’ experience of implementation of similar size and type projects (design services); 4 Geotechnical Graduate in Civil Engineering - Geotechnical 2 1 Engineer Engineering around 15 years’ experience in surveys and investigations 5 Architect Degree in Architecture with around 15 years’ 2 1 experience. Experience of implementation of similar size and type projects is a must 6 Heritage Civil Engineering with specialization in structural 2 1 Structural Engineering with experience in designing of road Engineer related structures (culverts, bridges, retaining walls and etc.), as well as specialized Buildings (Historical and Cultural). With Knowledge of the local and international standards for construction/rehabilitation works; 7 Environmental Degree in Civil Engineering / Masters in 1 0.5 Specialist Environmental services with around 10 years’ experience. Should be conversant with the requirements of ADB and National Laws 52 Appendix 1

No. Position Qualification Person Field months 8 Social Specialist Masters in Planning, Management Social Sciences or 1 0.5 other degree with around 15 years’ experience in design of social safeguards measures for ADB or The World Bank 10 Tourism Degree in Tourism Management with around 7 5 5 Specialist years’ experience in tourism development and hospitality industry Sub Total 26 II National Experts 1 Architect (2) Degree in Architecture with around 15 years’ 7 5 experience of implementation of similar size and type projects is a must 2 Structural Civil Engineering with specialization in structural 6 2 Engineer Engineering with experience in designing of road related structures (culverts, bridges, retaining walls and etc.), as well as specialized Buildings (Historical and Cultural). With Knowledge of the local and international standards for construction/rehabilitation works; 3 Geotechnical Graduate in Civil Engineering - Geotechnical 4 3 Engineer Engineering around 15 years’ experience in surveys and investigations 4 Road engineer/ Civil Engineer with 15 years’ experience in Road and 4 3 Transport Transport infrastructure design. Engineer 5 Topographer Civil Engineering preferably with specialization in 5 4 Geodesy/ Topography. Around 15 years’ experience of implementation of similar size and type projects (design services); 6 Financial Analyst Masters in Business Management, Finance, Cost/ 3 1 Chartered Accounting/ CPA/ACCA with experience in financial due diligence, with around 10 years’ experience in infrastructure project financial analysis and financial management assessment of the implementing agency. 7 Quantity Bachelors in Civil Engineering with around 4 0 surveyor 10 years’ experience in cost estimation and related activities. 8 Environm Degree in Civil Engineering / Masters in Environmental 3 2 ental services with around 10 years’ experience. Specialist Should be conversant with the requirements of ADB and National Laws 9 Social Masters in Planning, Management Social 3 2 Specialist Sciences or other degree with around 15 years’ experience in design of social safeguards measures for ADB or The World Bank 10 Economi Masters in Economic, Management, 3 1 st Finance, Cost/ Chartered Accounting with around 10 years’ experience in infrastructure project economic analysis 11 Procurem Bachelors in Engineering with around 10 years of 3 0 ent experience in procurement planning and Specialist procurement support for infrastructure projects in the region. Conversant with procurement regulations of the ADB, The World Bank and FIDIC Appendix 1 53

No. Position Qualification Person Field months 13 Gender Advanced/ Masters Degree in Gender, Sociology, 4 2 Specialist Anthropology, Development Studies, or other related Social Science fields with around 10 years of professional level experience in gender mainstreaming, analysis, research, designing gender policies, strategies, guidelines, and training manuals and regional, national and local level experience, and substantial knowledge of the social and gender issues. Experience with ADB or World Bank project a necessity 12 Others : 8 4 Provisional Sum (To be defined Cultural Specialist, Conservation specialist Archaeologist, Electrical Engineer, Energy Auditor Urban Designer) 13 CAD 30 0 engineer (6) Sub 87 Total Total 113

Appendix 1 53

Attachment 1: List of Sub Projects/ Activities by Region.

Note: This is an overall list to understand link between various elements. The scope of this TOR excludes Water, Wastewater and Roads components- being separate consulting procurement package). Roads and Water Supply components are part of a separate TOR and inclusion here is to ensure integration of all components as part of integrated urban action, the focus of the program

Tbilisi and Kakheti Region: With Akhmeta as the center of the cluster linking up with the mountainous region and forming a tourism circuit with Telavi and Tbilisi Ref to Year Cost short- Cost long- 4E Co- Action Objective/ Locations Lead Agency term (US$) term (US$) benefits 1 2 3 4 5 Strategy

Initiative 1: Develop a strong regional tourism sector with viticulture and heritage circuits 2,40,58,500 1,86,78,000 1.1 Urban planning and upgrade of Townscapes 1.3, 1.4, Akhmeta, Telavi, MDF and Streetscapes, including at train/bus 1.6 Gurjaani, Pankisi, 7,50,000 1,00,000 stations and commercial areas. Springs Park, Velistsikhe 1.2 Establish/ upgrade Cultural & Natural heritage 1.1, 1.3, Cheremi, Gurjaani, MDF sites for Tourism, including roads/trails/facilities 1.4 Akhmeta, Kvetra 1,83,08,500 1,02,28,000 & building works. Castle, Tskhrakara Castle, Bakhtrioni, Batsara, Velistsikhe 1.3 Cultural Heritage Development Facility 1.1, 1.3, Regional MDF (managed at central government level)* 1.4 30,00,000 - 1.4 Prepare a Sustainable Transport and Mobility 1.1, 2.2, Regional 4,00,000 0 MRDI/MoESD Master Plan 2.3 1.5 Improve inter-municipal and connectivity within Regional MDF the cluster via Public Transport (Bus, 1.1, 2.3 16,00,000 83,50,000 immediate need) inc. accessibility, SMART systems 1.6 Signagi - Rope Way TBD Signagi 0 0 MDF

Initiative 2: Improve Urban Environment in Telavi, Akhmeta, Gurjaani 2,01,55,480 26,62,880 2.1 Urban planning and upgrade of Townscapes 1.3, 1.4, Akhmeta, Telavi, MDF and Streetscapes 1.6 Gurjaani 20,94,880 -

Ref to Year Cost short- Cost long- 4E Co- Action Objective/ Locations Lead Agency term (US$) term (US$) benefits 1 2 3 4 5 Strategy 2.2 Add/ improve Recreation facilities for all 1.3, 1.4, Akhmeta, Telavi, MDF Gurjaani 4,88,000 7,26,000 2.3 Improve Parking facilities Telavi 1.1, 2.1 Telavi 50,00,000 0 MDF 2.4 Gurjaani - Animal Shelter TBD Gurjani 4,90,000 0 MDF 2.5 Upgrade Road Network Telavi 2.1, 2.2 Telavi 94,50,000 0 MDF/DoR 2.6 Upgrade Community/ Multi-Purpose Buildings 2.1, 2.6 Akhmeta, Telavi, 12,32,600 10,36,880 MDF inc. Alternative Energy & Energy Efficiency in Gurjaani various sports, social, administrative buildings 2.7 Riverbank Stabilization 2.1 Akhmeta 14,00,000 0 MDF 2.8 Agricultural Enterprise Zone 2.4, 2.7 Regional 0 9,00,000 MDF

Initiative 3: Promote balanced regional economic development 12,32,20,400 25,74,20,000 3.1 Improve regional connectivity via Public & 2.2, 2.3 Regional 0 20,10,00,000 MDF/MoESD Cargo Transport (train, long-term) 3,2 Expand Water Supply and waste water 2.5 Matani, 2,60,46,400 4,52,48,000 UWSC treatment to Surrounding Settlements, Maghraani, including meters Velitsikhe, Zagani, Kurdghelauri, Vardishbani 3.2i Telavi-Kurdgelauri; Construction of Sanitation 1,56,00,000 0 UWSC System and WWTP 3.2ii Gurjaani; Construction of Sanitation System 2,60,00,000 0 UWSC and WWTP 3.2iii Akhmeta; Construction of Sanitation System 1,97,60,000 0 UWSC and WWTP 3.3 Upgrade Road Network - for improved 2.1, 2.2 Matani, 2,66,60,000 43,00,000 MDF/DoR connections and reduced travel time, including Maghraani, new access roads, realignments and post Velitsikhe, Zagani, WSS remedial works Kurdghelauri, Vardishbani, Napareuli to Telavi, Akhmeta, Telavi 3.4 Upgrade Community/ Multi-Purpose Buildings 2.1, 2.6 Akhmeta, Telavi, 46,82,000 12,72,000 MDF inc. Alternative Energy & Energy Efficiency in Gurjaani, various sports, social, administrative buildings Velitsikhe, Matani Appendix 1 55

Ref to Year Cost short- Cost long- 4E Co- Action Objective/ Locations Lead Agency term (US$) term (US$) benefits 1 2 3 4 5 Strategy 3.5 Address Disaster Risk Reduction & 2.1 Akhmeta, Matani, 14,72,000 56,00,000 MDF Management Kvemo Alvani, Gurjaani 3.6 Business Development Fund (managed at 2.4, 2.7 Regional 30,00,000 0 EG central government level)* 3.7 Rehabilitation/construction of schools 2.1, 2.5, Regional 0 0 MDF

2.7 16,74,34,380 27,87,60,880

Samegrelo-Zemo Svaneti region Zugdidi as the focus. Ref to Cost Year Cost long- 4E Co- Action Objective/ Notes/Location short-term Lead Agency term (US$) benefits 1 2 3 4 5 Strategy (US$)

Initiative 1: Promote regional ecotourism focused on Zugdidi 1,68,82,800 3,93,50,000 Add/ improve Recreation facilities for all, including 1.1, 1.2, Zugdidi to 1.1 38,76,000 0 MDF trails, parking and new/upgraded sports facilities 1.5 Tsaishi Establish/ upgrade Cultural & Natural heritage sites Rukhi, 1.1, 1.2, 1.2 for Tourism, including gardens, castles, glamping. Jikhashkari, 33,58,000 2,50,000 MDF 1.3 Roads/trails/facilities & building works Kolkheti Cultural Heritage Development Facilkity (managed at 1.1, 1.2, 1.3 Regional 30,00,000 0 MDF central government level)* 1.5 Business Development Facility (managed at central 1.4 2.6 Regional 30,00,000 0 EG government level)* Urban planning and upgrade of Townscapes and Tsaishi, Khobi, 1.5 1.1, 9,48,800 0 Streetscapes including resort renovations Lebarde Prepare a Sustainable Transport and Mobility Master 1.6 1.1, 2.4 Regional 2,00,000 0 MRDI/MoESD Plan Improve inter-municipal and regional connectivity via 1.1, 2.2, 1.7 Public Transport (Bus, short-term) inc. accessibility, Inter Urban 13,50,000 11,00,000 MDF 3.1 SMART systems Improve cluster and regional connectivity via train 1.1, 2.2, Zugdidi 1.8 0 3,50,00,000 MDF and plane (long-term) 2.3, 2.4 including Ingiri Solid waste (briquette factory and tourism circuit 1.9 Regional 11,50,000 30,00,000 MDF management (short-term) and recycling (long-term)) Initiative 2: Improve Urban Environment in Zugdidi 62,33,800 3,32,00,000 Upgrade Road Network - for improved connections 2.1 and reduced travel time, including road alignments 2.1, 2.2 Zugdidi 3,00,000 2,28,00,000 MDF/DoR and ring road (long-term) Improve Building Efficiency/Use through Alternative 2.2 2.1 Zugdidi 5,05,600 0 MDF Energy & Energy & Accessibility (integrated with 3.3). Address Disaster Risk Reduction & Management 2.3 (integrated with 1.1). Focus on Chkhoushi river bank 2.1 Zugdidi 0 1,00,00,000 MDF stabilization Urban planning and upgrade of Townscapes and 2.4 Streetscapes, including train/bus stations, market 2.1 Zugdidi 49,33,200 0 MDF and public facilities Appendix 1 57

Ref to Cost Year Cost long- 4E Co- Action Objective/ Notes/Location short-term Lead Agency term (US$) benefits 1 2 3 4 5 Strategy (US$) 2.5 Agricultural Enterprise Zone 2.3, 2.5 Regional 0 4,00,000 MDF 2.6 Animal Shelter 2.1 Zugdidi 4,95,000 0 MDF

Initiative 3: Improve livability within selected peri-urban settlements 1,46,41,940 5,97,69,920 Tsaishi, Khobi, Upgrade Road Network - for improved connections Rukhi, Ingiri, 3.1 and reduced travel time, including road renewals and 3.1 MDF/DoR Zeda Etseri and 42,20,000 2,46,40,000 post WSS remedial works Kakhati Expand Water Supply and waste water treatment to Tsaishi, Khobi, Surrounding Settlements, including meters Rukhi, Ingiri, 3.2 3.1 UWSC Zeda Etseri and 89,35,440 3,41,29,920 Kakhati Upgrade Community/ Multi-Purpose Buildings (inc. Tsaishi,

3.3 spa, kindergarten, administration building, sports 3.1, 3.3 Kulishkari, MDF 14,86,500 10,00,000 club) Kakhati 3.4 Rehabilitation/construction of schools 2.1, 3.1 Regional 0 MDF 3,77,58,540 13,23,19,920

SAMEGRELO-ZEMO SVANETI REGION WITH MESTIA-LENTHEKHI CORRIDOR Ref to Cost Year Cost long- 4E Co- Lead Action Objective/ Notes/Location short-term term (US$) benefits Agency 1 2 3 4 5 Strategy (US$)

Initiative 1: Promote an expansion of sustainable tourism across the urban cluster 4,77,84,100 31,65,000 1.1 1.1, 1.2 Regional MRDI/MESD Prepare a Sustainable Transport and Mobility Master Plan 2,00,000 - 1.2 1.1, 1.2, Mestia MDF/MESD Improve regional connectivity via air including airport 2.3 - 5,00,000 improvements and heli-skiing extension 1.3 Urban planning and upgrade of Townscapes and Streetscapes, 1.6, 1.8, Mestia, MDF including development plans and public facilities 2.2 Lentekhi, 4,50,000 50,000 Ushguli 1.4 Add/ improve Recreation opportunities for all, including 1.3, 1.5, Mestia, MDF new/upgraded sports facilities and hiking trail development 1.7, 1.8, Lentekhi, 49,29,100 1,00,000 packages 3.3 Ushguli, Mestia to Ushguli, Lentekhi to Mestia, Lentekhi to Racha, Lentekhi to Samegrelo Park, Etseri, Nodashi, 1.5 Establish/ upgrade Cultural & Natural heritage sites for Tourism 2.1, 2.2 Mestia, Ushguli, MDF (integrated with 1.4) incl. plans and upgrading of one Chvibiani, 3,14,30,000 12,90,000 neighborhood, hike/bike trails, parking Zhibiani and Chazhashi 1.6 Business Development Facility (managed at central government 1.3, 1.7 Regional EG level)* 30,00,000 - 1.7 Cultural Heritage Development Facility (managed at central 1.4, 1.8 Regional MDF government level)* 30,00,000 - 1.8 Improve inter-municipal and regional connectivity via Public 2.2, 2.3 Regional MDF Transport (Bus, immediate need) inc. accessibility, SMART 14,75,000 12,25,000 systems 1.9 Address Disaster Risk Reduction & Management (integrated with 2.1 Mestia MDF 3.1) including hazard warning and river bank stabilization 33,00,000 -

Initiative 2: Improve the urban environment in Mestia 12,23,850 - Appendix 1 59

Ref to Cost Year Cost long- 4E Co- Lead Action Objective/ Notes/Location short-term term (US$) benefits Agency 1 2 3 4 5 Strategy (US$) 2.1 2.1, 2.3 Mestia MDF Improve Circulation and Parking – along main road (integrated 1,31,250 - with 1.3) including traffic management and bike lanes 2.2 Improve Building Efficiency/Use through Alternative Energy & 2.1 Mestia MDF Energy & Accessibility, incl. health, education & administration 5,42,600 - buildings 2.3 Solid waste (briquette factories and transfer station) 2.1 Mestia MDF 5,50,000 -

Initiative 3: Improve livability within selected peri-urban settlements 3,49,35,512 7,47,87,500 3.1 3.1, 3.4, Mestia, MDF/DoR 1.1, 1.6 Lentekhi, 2,43,93,208 7,46,10,000 Upgrade Road Network - for improved connections and reduced Tskhumari, travel time, including road renewals and post WSS remedial Tsvirimi, Adishi, works Mulakhi, Lenjeri, Ieli, Latali, Becho 3.2 Expand Water Supply and waste water treatment to Surrounding 3.1 Mestia, UWSC Settlements, including meters Lentekhi, 1,05,42,304 - Mulakhi, Lenjeri, Latali, Becho, Ushguli, 3.3 Upgrade Community/ Multi-Purpose Buildings 3.3 Lentekhi MDF - 1,77,500 3.4 Rehabilitation/construction of schools 3.1 Regional ??? 0 MDF

8,39,43,462 7,79,52,500 Note:*centrally managed facility, amount given is for total central facility.

Appendix 1 60

Attachment 2: Outputs by Stages26

(Will be destination/ sub project specific)

Stage 1 Conceptual Stage

Report, without being limited to the following: 1. Outline concept integrating various elements of the destination and outline packaging covering cluster/ sub cluster specific development themes; 2. Explanatory Note (including detailed description of problematic issues); 3. Topographic survey of the site (Topographic plan through UTM System of Coordinates: Scale 1: 200); 4. Cadastral documentation (including project and actual situation on topographic plan, layout of registered land plot(s) with indication of cadastral borders and a code); 5. Layout plan for location of the project site - Scale: 1:1000 or 1:500; 6. Initial study of archaeologist, art historians, energy experts, environmentalists, structural engineers and others as required by the specific destination (s) and, recommendations, including landscape context, accompanied with proper schemes, photographic materials, connections, and routes; 7. A project concept – with specified project site parameters, structural and technical solutions, including the overall site plan; 8. Feasibility study covering all possible options, analysis of problems and risks, parameters and scales of the sub-project (including financial scales along with estimated budget), estimated method and schedule of implementation; and 9. Classified photo material: general views of the project site, facades, interior, valuable elements from architectural-art standpoint, photos reflecting general and local damages Outcomes of engineering-geological survey – technical report, conclusions and recommendations (assessment of physical-mechanical features of soil, laboratorial analysis of samples, elaboration and conclusion of results). Surveys 1. Report on engineering-technical survey, including the information and schemes concerning connection to the utilities - water, sewage, electricity, gas or others; 2. Hydrological report; 3. (photos of high quality and resolution) – TIFF/JPEG expansion file). Output 1. Following completion of exploration-survey works and upon submission of the respective reports, rehabilitation methods and concept, the Employer will specify subproject scope and parameters, and likely solutions, which will be followed by decision on commencement of the next stage works. After initial survey, the Employer may come up with a decision to suspend works services on any of the components, based on the findings and recommendations.

Stage 2 Detailed Project Report

Report, without being limited to the following: 1. Explanatory Note (providing description of existing situation and arrangements stipulated by the project); 2. Topographic plan including cadastral borders and code(s); 3. Cadastral documentation (to include in the design and status quo topographic plans the registered land plot(s) outline with indication of cadastral boundaries and codes); 4. Layout plan for location of the project site - Scale 1:1000 or 1:500; 5. General location and master plans of the project site (scale 1:2000; 1:10000; 1:500);

26 As outlined by MDF for standard projects. Appendix 1 61

6. Master plan, with topographic mapping of the design area, with showing of red lines Drawings (plans, sections, facades); 7. Solutions: graphic and textual material – layouts, sections, elevations; 8. Structural solutions, and 9. Report on Environmental/Social survey and, IEE and Due Diligence / RP for project packages.

Additional 1. Layout of the access road/ trails and associated facilities; 2. Longitudinal profiles across the road axis which shall consist of project (red), earth (black) and working marks, kilometer performance, picket age and distances between characterizing points, graphical reflections of longitudinal slopes, vertical and horizontal curves along with numerical indexes, projected and existing artificial structures with the parameters. 3. Lateral profiles shall be surveyed (shot) in each 20 m (in case of requirement) and at characterizing points and shall comprise of project (red), earth (black) and working marks, distances between characterizing points, graphical reflection of lateral slopes along with numerical indexes and situation being in the vicinity of the sub-project site. There shall be provided also the project and existing artificial structures along with the parameters). 4. The roadbed structure with consideration of respective reports (in coordination with the Client); 5. Design for water diversion and drainage structures; 6. Road signage and safety measures (in relation to safe traffic flow in narrow section, crossing of pedestrians from private properties, side accesses, if relevant, and for potential landslides). 7. Hydrological report for rivers and run-off water; 8. Design of bridge crossings considering calculation of anticipated maximum loads; 9. All required registers (in accordance with the design); 10. Construction schedule; 11. Work activity (construction) management; 12. Cost estimate of construction; 13. Technical specifications for Bidding Documentation that are to be enclosed separately to the design-cost estimate documents and shall include general indications and recommendations for Bidders (participating in construction Bidding)/Contractor. Also Detailed Specifications (with indication of all required standards) for applied material and machinery, aimed at controlling methods and quality of works’ performance/testing), and 14. Economic analysis and financial analysis

(As a general note the estimates should include provisional sums to address unexpected/ unforeseen activities that the contractor will encounter which may include possible archaeological interventions, drainage works etc.) Appendix 1 62

PACKAGE 3B: GEORGIA LIVABLE CITIES INVESTMENT PROGRAM TERMS OF REFERENCE FOR DESIGN OF FACILITIES TO SUPPORT LOCAL ECONOMIC DEVELOPMENT THROUGH TOURISM RELATED SUPPORT ACTIVITIES AND DEVELOPMENT OF INSTITUTIONS

I. OBJECTIVES

1. The main objective of the assignment is to enhance access to tourism destinations and markets/ facilities by the local population. This will be achieved through strengthening/ rehabilitating and widening regional road networks as well as improved/ alternate urban roads.

II. SCOPE OF WORK

2. The scope of work covers five components, (i) Three of them related to livelihood, to be managed by the Municipal Development Fund and Enterprise Georgia; (ii) an exclusive cultural development fund to support small attractions in the regions ,and (iii) an overall program specific institutional development component to address additional skills required to manage the program by the implementing agencies including exposure visits to best practices and strengthening urban management partnerships beyond the support provided under the TA.

3. The consultants will need to build on the existing arrangement of the agencies or related departments of GoG. The TA 9220 – Geo Livable cities program provides sufficient insights into the program and approach and could be used the base for developing the elements under this consulting. The consultant is expected to coordinate with and provide support to ADB TA consultant teams in carrying out due diligence of the investment projects.

4. They components and scope are as follows:

Facility & Management Scope of Activities Enterprise Georgia Business Development ▪ Support individuals and MSME’s in initiating businesses relating Fund to tourism as well as local skill development and handicrafts; ▪ Design a loan and grant facility to enable access resources including update of operating procedures- build on EG’s operating procedures of screening, business development support, marketing and enabling access to market besides support and in defining support thresholds; ▪ Define strategy and capacity building needs of MSME’s including linkages with technical institutions at the regional level including technical and vocational educational training (TVET); ▪ Define communication and outreach program for the facility Handicraft Business Design and development of handicrafts business clusters in the regions Clustersa to: Development and Marketing Enable artisans in skill upgradation, Production support through technical incubators; Marketing support and associated facilities such as common business centre, trade tie ups etc. Appendix 1 63

Facility & Management Scope of Activities Support in business planning and establishments Exhibition & Sales Demonstration of crafts and products on site for tourists; Marketing of goods to tourists and other suppliers, on-line marketing etc; Demonstration: Prepare feasibility, design and operating guidelines for a facility Municipal Development Fund Cultural Heritage Design: Fund A small grant/ loan revolving fund to support restoration, enhancement and redevelopment of natural and cultural heritage sites in the regions.b (These may be publicly or privately owned); Define (i) Selection procedure- eligibility norms; (ii) operating procedures: Planning, design, review, approval, implementation, financing (Loan/Grants) and reporting; Define facility management arrangements including staffing and responsibilities; Define/ demonstrate repayment sustainability measures by way of value capture, fee based / policy subsidy based or other measures. Demonstration: Prepare feasibility, design and operating guidelines for a facility Agricultural Enterprise Demonstration at Gurjani and Scale up in other Regions. Zone (AEZ): Indicative objectives of the AEZ are to: Development, Promotion & Marketing Support linkages with existing centers of commercial activities Encourage continued investment in new and/or expanding agricultural enterprise Promote the creation and retention of jobs which provide employment opportunities for the local population; Facilitate support diversification of the local agro-economy and enhance the value chain; Infrastructure Accessible site and infrastructure such as, water supply, electricity supply, solid and wastewater treatment and Collective sorting and storage facilities for soft fruit (peaches, apricots etc.) including refrigeration units to reduce wastage and enable crops to reach the market; and, Abattoir - meeting sanitary and animal welfare standards, including freezer storage units and waste treatment facilities; Enhance the aspects of quality of life integral to a vibrant business climate through support of traditional agricultural practices, the arts, education, transportation, healthcare, affordable housing, and cultural and recreational programs (to be linked with other activities under the program). Demonstration: Prepare feasibility, design and operating guidelines for a facility Institutional ▪ Assess the program components and review the skills required Development to manage the programs/ facility (s) including staffing and responsibilities for all executing and implementing agencies, and associated funds/ facilities; ▪ Capacity enhancement / skill upgrade needs: to manage the program, implementation of facility (s) and in terms of better O&M/ Asset management; Appendix 1 64

Facility & Management Scope of Activities ▪ Training required in ADB safeguards, Financial Management and Procurement; ▪ Assessment of TVET, collaboration with academic institutions in consultation with the communication specialist; ▪ Design and management of cultural facilities (including exposure visits and options of expanding urban management partnerships); Communication and ▪ Definition of MSME capacity development needs, Outreach ▪ Assessment of TVET, collaboration with academic institutions ▪ Definition of scope of the program and opportunities for direct and indirect engagement, and related skill upgradation options ▪ Definition of communication strategy and outreach plan (Enterprise Georgia) for the business development facility and the program (MRDI) Public Private Provide technical advice, policy input and strategic support to the Partnerships Executing agencies in following activities:

▪ Developing guidelines and mechanism for identifying areas where PPPs could be initiated. ▪ Developing model for project structuring, business planning, capital structuring, marketing planning, risk management, securing policy agreements, deal closure and transaction management. ▪ Developing terms of reference for engagement of Technical Consultant and Transaction Advisor. ▪ Appraising the technical and financial feasibility of DPR pre pa re d by the Technical Consultant. ▪ Reviewing the guidelines prepared by the Transaction Advisor for developer selection, ▪ EOI/RFP/RFQ document and bid parameters, road shows /advertising for identifying potential developers, evaluation for selection and draft project agreements (Concession/ Developer Agreements, Shareholders Agreements, Land Lease Agreements, etc). ▪ Coordinating with developers and consultants and stakeholder management. ▪ Any other tasks related to PPP as required by the GoG.

a There are proposals to house some of these in Municipal Multi-Purpose Building. Request from Gurjani. b Replenished through a charge on tourists, levied at hotels, guesthouses and other accommodation. Fees collected in a particular municipality would be earmarked for spending in the same area.

5. Additional tasks would include: A Social and Environmental Impact Assessment (as necessary) in accordance with ADB`s Safeguard Policy Statement (SPS) 2009 and National Government`s Policy shall be carried out by the Consultant. This would for select sub projects/ components (infrastructure) being designed under the project. There will be a need to development a general environmental and social management system (ESMS) combined for all the facility(s) being proposed. If required consultant should be Prepare safeguard documents/reports i.e.

6. Gender The consultant will provide support to team leader on Road and institutional assessment tasks above from the social development perspectives and conduct comprehensive social assessment and preparation of and will (i) conduct socioeconomic surveys if needed, in collaboration with other specialists; (ii) review government policies and strategies for poverty reduction and gender mainstreaming; (iii) conduct a public perception Appendix 1 65 survey to identify issues and development priorities; (iv) conduct a poverty, social, and gender assessment to collect a baseline socioeconomic data (including sex-disaggregated baselines and proxy data) on program beneficiaries which further can be used for monitoring and evaluation purposes; (v) prepare a poverty reduction and social strategy, and (vi) prepare a gender action plan and other social action plans.

A. Economic Analysis and Financial Due Diligence

7. Each sub project (demonstration) package/ facility should include an economic analysis and financial due diligence as per the requirements of the ADB. The economic analysis should be in accordance with ADB guidelines, including the Economic Analysis of Water Supply Projects (1998) and the Guidelines for the Economic Analysis of the Projects (2017).27 The financial analysis should be in accordance with the Guidelines for the Financial Management and Analysis of Projects of the Asian Development Bank (ADB).28

8. Financial Management Assessment: In coordination with the economists, the financial management would include an FDD in accordance with ADB’s requirements, which include the following tasks: (i) conduct a financial management assessment of the implementing agency, including (a) assessing whether previous financial management assessments have been conducted by ADB or other agencies and, if so, reviewing the results and ascertaining whether these can be used as input, (b) assessing FM staffing and capacity for planning and budgeting, management and financial accounting, reporting, auditing, internal controls, and information systems (ii) reviewing proposed disbursement including any necessity or capacity for using advance procedure of the statement of expenditure procedures and funds-flow arrangements, (d) concluding on the financial management risk rating, (e) identifying risks arising from material deficiencies, and propose practical recommendations for improving financial management functions and/or staffing for financial operations needed to mitigate risks; (f) provide relevant detailed information to enable completion of the financial management sections, Risk Assessment and Risk Management Plan, and (g) explain to the government the financial management assessment, and relevant proposed financial risk mitigation measures; (iii) support the preparation and agreement of consolidated cost estimates for the ensuing projects and a financing plan, which are based on verifiable data and are sufficient to support project implementation; (iv) prepare financial projections and conducting financial analyses of the implementing agency, and incremental recurrent costs, to determine financial sustainability, and reviewing proposed cost-recovery and tariff policies, including affordability; (v) conduct financial evaluations (financial cost-benefit analyses) including sensitivity analyses of project components that have a cost-recovery objective; (vi) conduct financial sustainability and fiscal impact analysis with the emphasis on the availability of adequate financial resources to meet the incremental recurrent costs arising from the project, their ability to service ADB loan, and to provide the necessary counterpart funding during project implementation. This includes assessment of the financial status of the executing and implementing agencies in

27 ADB. 1998. Economic Analysis of Water Supply Projects. Manila; and ADB. 2017. Guidelines for the Economic Analysis of the Projects. Manila. 28 Refer to the following PFFM guidance material: (i) Technical guidance note (TGN) for Financial Management Assessment (2015), (ii) TGN (2015) for project financial reporting, and (iii) TGN (2014) for preparation of cost estimates, and eLearn module for Cost Estimates preparation and presentation.

Appendix 1 66

reference to their respective counterpart funding requirements for the project, where significant risks are identified to project financial sustainability or viability, propose relevant financial performance indicators to be incorporated in financial covenants; (vii) assess and reach agreement on financial reporting, auditing and public disclosure arrangements for the project, and, as appropriate, identify and agree on arrangements for receiving financial statements from executing agencies and implementing agencies and, (viii) prepare appropriate fund flow mechanism, disbursement schedule including contract awards and disbursements; and standard cost estimates tables (in coordination with the Procurement specialist), and provide costing and financial forecasting data for the economic analysis (in coordination with Economist).

9. Detailed Designs, Cost Estimates, Drawings and Specifications: For all facilities involving works or goods to be procured as part of demonstration activities: a. Prepare preliminary and detailed engineering designs, rate analysis, drawings, cost estimates, and bills of quantities; b. Develop appropriate design approaches and confirm standards with the MDF, to be adopted for the Investment Program and based on international and national design standards, c. Appropriate procurement and implementation options such as DBO, Build operate etc., and d. Prepare land plan schedules for the facilities.

10. Bid Process Management: Prepare prequalification documents based on ADB standard bidding documents {SBDs) for proposed subprojects and assist the MDF invite statement of qualifications from bidders

III. OUTPUTS

11. The expected outputs are five in nature as outlined the table below. This would include bid documents for the facilities and an implementation plan.

Outputs Tasks Business Facility Development Fund ▪ Business Plan based on existing and new financing/ support products of EG or proposed facility; ▪ Financing products and eligibility criteria for loans and Grants or mix of loan and grant; ▪ Access criteria for individuals and MSMEs for various EG products such as technical assistance (Product business plan, establishment services) and financing ▪ Define rates, fees and charges for products ▪ Resource requirements (manpower and financial) including a pipeline of activities and ▪ Concept and appraisal of the first five activities for EG. Communication and Outreach ▪ MSME capacity development needs, ▪ Plan for TVET, identified collaboration with academic / technical institutions ▪ Defined opportunities for direct and indirect engagement, and related skill upgradation options including links with institutions ▪ Communication strategy and outreach plan (Enterprise Georgia) and all livelihood related actions (such as Agri Enterprise Zones, ▪ handicrafts cluster etc.) for the business development facility and the LCIP (MRDI) Appendix 1 67

Outputs Tasks Handicraft ▪ Define centers and nature of skills required, List of trainers and centres for Business Clustera training (Probable definition of the multi- purpose building as the training center), ▪ Design and estimates for production at technical incubators; ▪ Marketing support and associated facilities such as common business center, trade tie ups etc. and its cost and costs of O&M ▪ Business plan for three facilities in the three regions; ▪ Design and estimates of facility for exhibition and sale of products in MPB; ▪ Design of a web site for sale of goods on-line marketing etc. Demonstration: ▪ Prepare feasibility, design and operating guidelines for a facility Cultural Heritage ▪ Operating procedures: eligibility criteria for the facility such as but not limited Fund to: i) assets of particular value; ii) assets which require attention with some urgency to avoid further deterioration; iii) assets in areas with tourism potential; ▪ Financing modality by type of project/ ownership; ▪ Methods of cost recovery for each typology of ownership and its administration. Demonstration: ▪ Design and Feasibility for a zone for implementation under the Program including definition of management arrangements.b Agricultural In consultation with MRDI, MDF and Regional Governors, develop a plan for Enterprise Zone similar zones in select regions. (AEZ): Facility management arrangements including staffing and responsibilities/ Mechanisms to: Development, Promotion & Marketing: ▪ links with existing centers of commercial activities; ▪ Promotional arrangements to encourage continued investment in new and/or expanding agricultural enterprise; ▪ Skill upgradation needs at the zone level; ▪ Mechanisms and methods to support diversification of the local agro- economy and enhance the value chain; ▪ Marketing arrangements for the facility ▪ Local Market for produce -design and estimates. Infrastructure: ▪ Estimate of site and infrastructure requirements such as, water supply, electricity supply, solid and wastewater treatment; ▪ Associated facilities for each zone. Demonstration: ▪ Design and Feasibility for a zone for implementation under the Program including definition of management arrangements. Institutional ▪ Terms of Reference for project management consultants; Development ▪ Capacity needs assessment of implementing agencies followed by a Training Plan, Schedule and estimates in consultation with ADB on safeguards, Financial Management and Procurement; ▪ Design and costs for training relating to management of utilities, cultural facilities including exposure visits; ▪ Design and costs for visits- to destination management organization including guidelines on areas of ties up with destination management organizations, and ▪ Facilitate the identification and establishment of urban management partnerships (UMP) to share best practices and develop efficiencies and core capacities of relevant agencies PPP Advisory ▪ Definition of areas of possible scope for PPP in the sectors of focus on LCIP including MSME, handicrafts and other specialized tech zones; ▪ Guidelines and mechanism for identifying areas where PPPs could be initiated ▪ Development of sample project in consultation with team leaders and their Appendix 1 68

Outputs Tasks appraisal and approval by GOG; ▪ Engage with various business development facilities, developers including MDF and focus on ease of doing business, and ▪ Any other initiative under PPP-Concept plan, appraisal of project documents for GOG ▪ Model for project structuring, business planning, capital structuring, marketing planning, risk management, securing policy agreements, deal closure and transaction management. ▪ For defined opportunities, EOI/RFP/RFQ document and bid parameters, road shows /advertising for identifying potential developers, evaluation for selection and draft project agreements (Concession/ Developer Agreements, Shareholders Agreements, Land Lease Agreements, etc.). a There are proposals to house some of these in Municipal Multi-Purpose Building. Request from Gurjani. b Indicative options include Svan towers in Mestia but will also consider other heritage assets in the other clusters, such as similar towers in the Tusheti region of Akhmeta, churches and other assets.

IV. REPORTING AND SCHEDULE

12. The duration for this assignment is 6 Months. The reporting schedule is as follows:

13. The consultant will present two (2) hard copies in English, two (2) hard copies in Georgian and one (1) soft copy of each report in each language to the Client. These reports are as follows:

(a) Inception Report: The Inception Report will be presented within two weeks after the signing of the contract, and it will include: (i) Initial Findings; (ii) Consultants’ detailed work schedule and methodology, including the schedule and scope of all surveys, investigations, and tests, etc. to be conducted; (iii) A program for the use of resources including personnel, equipment, and materials etc.; (iv) A proposed outline for the final report; (v) Design criteria to be employed, including identification of all technical standards and procedures to be used; (vi) Quality Assurance Plan for all field studies, design and documentation; and (vii) Schedule of delivery by each of the facility/ activity defined in the scope.

(b) Feasibility Study Report: The Draft FS Report will be presented 3 months after the signing of the contract. The report will: (i) Present the updated and comprehensive results of the, investigations, assessments and studies conducted. Individual reports may be submitted in respect of discreet subject matter; (ii) Present and analyze the alternatives; (iii) Identify environmental and social issues and cost mitigation measures; (iv) Estimated cost of facilities; (v) Present preliminary designs and construction cost estimates for works and operating procedures and institutional and management arrangements for the facilities; (vi) Economic analysis and financial due diligence of interventions, and (vii) Definition of next steps, time frame and roles and responsibilities of participating entity including clearances required to launch the Appendix 1 69

facility(s). (viii) Detailed Design Report and Tender Documents: - The Draft Detailed Design Report will be submitted within 2 months of receipt from the Client of approval of the Draft FS Report. The Report should: (ix) Finalize the information presented in the FS Report and include a clear recommendations on the way forward, including a procurement plan for components that need to be selected based on a bidding process, bid documents; (x) Detailed designs and cost estimates; and Bid Documents, and (xi) By facility, the business plans, structure, costs, operating procedures safeguard requirements etc. (c) Other Reports: - Other specific reports shall be submitted in the course of the project as requested by the Client, e.g. IEE/EIA, SIA, RAP etc.

14. Documents produced by the Consultant as part of these services will be subject for the review and approval of the Client and external organizations/experts. The estimated time for revision and issuing the comments on submitted reports is 10 calendar days.

15. Within 14 days after receipt of comments from the Client on the Draft Reports, the Consultant shall present the Final Report.

16. At every stage, within one-week period following submission of the documentation, the Employer will furnish the consultant with its remarks within 10 days. The consultant shall consider the above-mentioned for the following stage and introduce the respective amendments to the design documentation

V. STAFFING- QUALIFICATION AND EXPERTISE

17. All of the members of the consulting team must have excellent communication and interpersonal skills and they must be fluent in English. The key experts required for the Consultant’s team and their minimum qualifications and experience and minimum input are as follows:

18. Members of the consultancy team must have working experience in developing countries. Staff should be fluent in written and spoken English, fluency in Georgian would be an advantage. All team members must be present in Georgia when conducting their assignments.

No. Position Qualification Person months I International Experts 1 Deputy Team Master’s in Business Administration with around 20 years of 9 Leader experience in design/ management of livelihood/Infrastructure/ social development facilities 2 Municipal Masters in Engineering with around 15 years of experience in 2 Engineer design of community, Infrastructure and social development facilities 3 Institutional Master’s in Business Administration / Urban Planning/ Public 2 Development Administration with around 20 years of experience in developing institutional development programs as well as TVETs 4 Agriculture A degree in agricultural engineering, agriculture or agricultural 2 Engineer marketing with around 20 years in design of farm support facilities/ extension services/ product marketing and innovation’ Appendix 1 70

No. Position Qualification Person months 5 Marketing Master’s in Business Administration with at least 15 years of 2 Specialist experience in development of marketing strategy for small scale sector, agriculture- horticulture, handicrafts and other cultural products 6 PPP Specialist Master’s Degree in Engineering & Business Management with 6 around 10 years’ experience in design, management and monitoring of PPP projects. Experience of working with Government and handling policy discussions and planning. Experience of working with private sector developers, financial institution and consultancy. 7 SME Masters degree in economics, management, business or 6 Development social sciences and around 15 years of practical experience in Specialist SME development 8 Skill Degree in engineering Masters in management or social 2 Development sciences and around 15 years of practical experience in: (i) Specialist development of technical/vocational education and training (TVET) or related programs or TVET course delivery or conducting TVET-related studies; (ii) knowledge and experience of conducting research on education and training sectors, particularly in the areas of TVET; (iii) experience in labor market research and skills development shall be an advantage; (iv) familiarity with national and/or local rules, legislation, and practices governing human resource policies and labor laws will be an additional advantage. Specific scope of work would include 9 Communication Masters in Communications, Management or Social Sciences 2 and Outreach with around 15 years experience in defining outreach program specialist for the social sector in skill upgradation, livelihood or related themes. 10 Legal Specialist The legal specialist shall be a graduate of law with around 15 1 years’ experience in infrastructure and corporate law. Experience in working with public sector agencies is desirable 12 Economist Masters in Economic, Management, Finance, Cost/ Chartered 1 Accounting with around 10 years experience in infrastructure project economic analysis 13 Financial Masters in Business Management, Finance, Cost/ Chartered 2 Specialist Accounting/ CPA/ACCA with experience in financial due diligence, with around 10 years’ experience in infrastructure project financial analysis and financial management assessment of the implementing agency, 11 Architect Degree in Architect with around 15 years’ experience in 2 implementation of buildings and historical conservation programs

Sub Total 39 II National Experts 1 Deputy Team Masters in Engineering with around 15 years of experience in 2 Leader design of community, Infrastructure and social development facilities

2 Institutional Master’s in Business Administration / Urban Planning/ Public 2 Development Administration with around 15 years of experience in developing institutional development programs as well as TVETs Appendix 1 71

No. Position Qualification Person months 3 Agriculture A degree in agricultural engineering, agriculture or agricultural 3 Engineer marketing with around 15 years in design of farm support facilities/ extension services/ product marketing and innovation 4 Skill Degree in engineering Masters in management or social 2 Development sciences and around 15 years of practical experience in: (i) Specialist development of technical/vocational education and training (TVET) or related programs or TVET course delivery or conducting TVET-related studies; (ii) knowledge and experience of conducting research on education and training sectors, particularly in the areas of TVET; (iii) experience in labor market research and skills development shall be an advantage; (iv) familiarity with national and/or local rules, legislation, and practices governing human resource policies and labor laws will be an additional advantage. 5 Marketing Master’s in Business Administration with at least 15 years of 2 Specialist experience in development of marketing strategy for small scale sector, agriculture- horticulture, handicrafts and other cultural products 6 Architect Degree in Architect with around 10 years’ experience in 2 implementation of buildings and historical conservation programs 7 Structural Civil Engineering with specialization in structural Engineering 2 Engineer with experience in designing of road related structures (culverts, bridges, retaining walls and etc.), as well as specialized Buildings (Historical and Cultural). With Knowledge of the local and international standards for construction/rehabilitation works; 8 Quantity Bachelors in Civil Engineering with around 1o years of 3 surveyor experience in cost estimation and related activities. 9 Legal The legal specialist shall be a graduate of law with around 10 2 Specialist years’ experience in infrastructure and corporate law. Experience in working with public sector agencies is desirable 9 Communicatio Masters in Communications, Management or Social Sciences 2 n and with around 15 years experience in defining outreach program Outreach for the social sector in skill upgradation, livelihood or related specialist themes. 10 Environmental Degree in Civil Engineering / Masters in Environmental 3 Specialist services with around 10 years experience Should be conversant with the requirements of ADB and National Laws 11 Social Masters in Planning, Management Social Sciences or other 3 Safeguards degree with around 15 years experience in design of social safeguards measures for ADB or The World Bank 12 Gender Advanced/ Masters Degree in Gender, Sociology, 2 Specialist Anthropology, Development Studies, or other related Social (common for Science fields with around 10 years of professional level all activities experience in gender mainstreaming, analysis, research, under this designing gender policies, strategies, guidelines, and training package) manuals and regional, national and local level experience, and substantial knowledge of the social and gender issues. Experience with ADB or World Bank project a necessity 13 Economist Masters in Economic, Management, Finance, Cost/ Chartered 2 Accounting with around 10 years experience in infrastructure project economic analysis 14 Financial Masters in Business Management, Finance, Cost/ Chartered 4 Management Accounting/ CPA/ACCA with experience in financial due Specialist diligence, with around 10 years’ experience in infrastructure Appendix 1 72

No. Position Qualification Person months project economic analysis and financial management assessment of the implementing agency 15 Procurement Bachelors in Engineering with around 10 years of experience 2 Specialist in procurement planning and procurement support for infrastructure projects in the region. Conversant with procurement regulations of the ADB, The World Bank and FIDIC Sub Total 38 Total 77

VI. CONTRIBUTION OF THE CLIENT 19. The Client will provide the Consultant with all available material that may be required for service execution.

VII. FORMAT AND PLACE OF SERVICE DELIVERY

20. The reports for all stages of service shall be submitted in writing.

21. Final documents of design-cost estimate along with the Bidding material shall be prepared in Georgian and English language and submitted in soft copy format (MS Word and Excel, whilst the graphical part will be submitted in AutoCAD or ArchiCAD formats). It is mandatory also the drawings to be provided in PDF format. The documents shall be provided on CDs (either CDs or DVDs). These documents are to be provided also as albums - 4 (four) copies (formats: A4 and A3).

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PACKAGE 3C: GEORGIA LIVABLE CITIES INVESTMENT PROGRAM TERMS OF REFERENCE FOR DEVELOPING REGIONAL PUBLIC TRANSPORT PLAN FOR SELECT REGIONS OF GEORGIA

I. INTRODUCTION

1. This consultancy as well as follow on procurement of works, goods and services will be managed by the Municipal Development Fund.

II. THE OBJECTIVES

2. The objective of this assignment is to develop a sustainable transport plan for the three regions under this program and development of an implementable public transport program.

III. SCOPE OF SERVICES

3. The Consultant will carry out the following tasks:

i. Situation analysis of passenger transport in the project area including public transport (PT) services and intermediate public transport (IPT) services such as taxis; ii. review the inventory and classification of the road network, and update the road inventory, classification and traffic level on the road network that serve the tourist circuit, iii. undertake needs assessment for PT services to serve the tourism destinations in the cluster; iv. develop a transportation and mobility plan for the project areas based on tourism developments planned and identify future transport demand on the road network for various development scenarios; v. define the associated traffic management improvement measures within the urban segments; vi. develop a public transport development plan for the analysis period in terms of the options, mode, routes and schedules, and, vii. develop an implementation plan outlining the investment required for public transport and associated facilities such as terminus, transfer facilities and stations with associated public convenience facilities; viii. Analyze public, private and PPP options for operation of public transport and recommend the best option; ix. a financing plan that is financially sustainable plan through a combination of fare box resources, state/ local revenue assignments in terms of grants/ policy subsidy/ viability gap and other possible commercial developments; x. institutional arrangements and implementation modality as well as any innovative approaches such as private sector participation in keeping with the intended objectives of a sustainable services and; xi. coordinate with and provide support to ADB TA consultant teams in identifying low- mission public transport modes and technologies.

4. The design should include Smart elements in terms of information management, fare management with adequate linkages to various tourist and public information sites and a robust fleet management system to enable the authorities respond to tourist and public demands.

Task 1: Situation analysis i. Definition of Study Area: Attachment 1 presents the area of study. The consultant will Appendix 1 74

need to validate the area based on reconnaissance as well traffic volume studies on the corridor; ii. Define the planning horizon iii. Review of existing plans and demographic data iv. review the following documents on the land use and transport system (as available): v. Comprehensive Traffic and Transport Studies vi. Comprehensive Mobility Plans vii. Transport-related Detailed Project Reports in the study area/ region viii. Understand the context based on discussions with the provincial government (s), MRDI and tourism department.

Task 2: Review and prepare road network inventory 5. The Consultant will prepare a detailed inventory of public streets in the Study Area with a right-of-way (ROW) of all major roads connecting tourist destinations and urban areas in the region and rail/air terminals. The Consultant will prepare a GIS map of the network, recording the following data for each segment between major intersections, the width of the public ROW, as designated in the Master Plan or Development Plan of the department of roads or Regional Governors asset inventory. (i) Footpath presence and quality (in Urban Bus Route Roads): a. Clear width of the footpath (if present). b. The number of obstructions in the clear width per segment. c. The per cent of the segment length with shade at 2 p.m. (from buildings or trees). (ii) NMV track presence and quality (same metrics as for footpaths). (iii) Carriageway: a. Pavement quality. b. Effective width for vehicle movement. c. Width of the ROW occupied by on-street parking. (iv) Public transport: a. Name and location of bus stops. b. Presence of physically separated lanes for public transport (e.g. BRT). 6. Crash data (i) The Consultant should collect traffic crash types and locations from the Police and other relevant authorities. The data should be geocoded using the GIS platform in order to create a map of crash “black spots.”

7. Classified cordon counts

8. The classified traffic volume and occupancy counts of all motorized vehicles, nonmotorized vehicles, and pedestrians should be carried out for 16 hours per day (from 6:00 to 22:00) over 1 weekday at each cordon line location and should be conducted for each direction separately. For cordon locations with large markets, the survey should be conducted on Sunday in addition to the weekday. Proposed traffic survey locations should be identified during Task 1 and be listed in the Inception Report.

9. For public transport and paratransit (i.e. shared vehicles) modes, the Consultant should conduct a frequency-occupancy survey (described below). For personal vehicles, an average occupancy rate determined from a representative sample in each study area is acceptable.

10. The data must be compiled in using spreadsheet or database software, and the results should be presented in tabular and graphical form. The location for each survey must be cross- referenced in the street network layer in the GIS database.

Appendix 1 75

11. Public transport frequency-occupancy: The Consultant will use the results of the traffic counts conducted above to identify major public transport corridors in the region. At each of these locations, a detailed frequency-occupancy survey will be conducted to aid in the assessment of the supply and quality of public transport services. Each frequency-occupancy survey will be conducted in both directions during the 4-hour peak period with the highest public transport passenger volumes (as identified during the 16-hour traffic counts). The survey should be conducted at enough points to ensure that 95 per cent of bus routes pass through at least one survey location. At each location, the following data should be noted for each public transport vehicle that passes the cordon line: (i) Type of service (e.g. city bus, shared vehicles, intercity bus, etc.). (ii) Vehicle size (e.g. 12 m bus, minibus, diesel shared vehicles, etc.—to be determined based on the local fleet composition). (iii) Route number (if applicable). In the case of paratransit vehicles for which the route number cannot be determined from obvious signage, the consultant should devise an alternate methodology to determine the relative frequency of each service on the corridor. (iv) Number of passengers on the vehicle. (v) Time the vehicle passed the cordon line.

12. Public transport operating statistics and route definitions:

(i) The Consultant should collect the following system-wide data for the previous 6 months from public transport operators in the region (ii) Fare schedule (i.e. fares vs. travel distance). (iii) Total daily boarding (s). (iv) Average daily revenue by ticket denomination. (v) Average daily/weekly/monthly revenue from tickets and passes. (vi) Daily/monthly vehicle-km operated. (vii) Operating cost per vehicle-km.

13. For each route that the agency operates, the following should be collected:

(i) Route definition (i.e. list of stop names/locations). The bus stops listed in the route itineraries should be reconciled with the stop names identified in the street survey, resulting in a master list of unique bus stops. (ii) Planned frequency. (iii) For paratransit modes (e.g. shared vehicles/ mini vans, taxis, cycle shared vehicles, etc.), an equivalent set of data should be collected through sample driver and passenger interviews. A sample survey of these operators shall be conducted at major destinations. I Information on vehicle and operating characteristics shall be collected. Surveyors should also gather information on socio-economic characteristics of operators.

14. On-board public transport origin-destination surveys

(i) On-board passenger OD surveys should also be completed on the busiest public transport routes (e.g. the routes with the highest loads as observed in the frequency occupancy survey, accounting for at least 90 per cent of total passengers observed). The surveys shall be conducted on a representative sample of trips for each route (minimum of 5 trips per direction surveyed for each route). Electronic ticketing records, if available, are an acceptable data source. Otherwise, the Consultant is expected to conduct manual counts. (ii) Speed and delay surveys for public transport: The public transport speed and delay surveys will be conducted on major public transport corridors. Surveyors should make qualitative observations about the cause of delay along each Appendix 1 76

segment. The public transport speed per segment should be mapped using the GIS platform. (iii) Vehicle fleet data: Vehicle ownership data should be obtained from the Regional Transport Office and other sources to ascertain the personal motor vehicle fleet size, classified by vehicle type. Records should be obtained for at least the past 5 years. (iv) Terminal area survey: This survey is designed to collect information on vehicle movement patterns at major terminals, distribution centres, and market areas, the number of vehicles entering and leaving the complex, including the number of passengers, type of vehicle, and commodity carried should be recorded.

Task 3: Undertake needs assessment 15. Survey - Carry out a survey of households and tourist travel pattern in the region (OD Survey). i. The Consultant will carry out a detailed household survey and of tourists to ascertain demographic characteristics, travel behavior, and other information. The study area must be divided into traffic analysis zones (TAZs. A minimum sample size of 2 per cent of households and 5% of tourists (based on all available rental accommodation) shall be covered. The survey will help reveal transport demand characteristics. The TAZ definitions should facilitate data collection from a representative sample of the population, without bias toward specific income groups or city regions. ii. The survey should include a travel diary that covers the previous working day. The travel behavior of all members of the household should be included (in person or by proxy), including trips of homemakers, children, and elders. Trips of all lengths should be included. Specifically, the Consultant must not exclude short trips, especially those performed by walking (i.e. trips that are shorter than 1 km or within the TAZ). Visitors coverage should include all major destinations as approved by the technical committee/ MDF. iii. The survey should clearly identify the perception of population and tourists about availability and frequency, need and likely usage with increased availability, routes that would have helped them better address their travel needs, and other related aspects to conduct a detailed needs assessment for public transport service

Task 4: Develop a transportation and mobility plan 16. The Plan should provide the transport network and associated facilities required for each of the region:

i. Analysis of mobility patterns: Under this task, the Consultant will develop and calibrate a transport model for use in the development of the Strategic and Transport/mobility Plan and its implementation. This would be a summary of the following tasks. ii. Travel demand model setup: develop a travel demand model using the results of the mapping activities, OD surveys, traffic counts, and frequency-occupancy counts The model should allow the Consultant and Client to analyze the impact of changes in land use, population, income, demographics, and other features that influence travel demand. It should also have the capability to measure the impact of specific transport system interventions on the transport network. The modelling should emphasize tourist/ person-based travel patterns, using trip generation, trip distribution, and trip assignment modules to predict travel behavior and vehicle movements. The model should reflect the travel behavior in a disaggregate fashion and should reflect the travel mode of the residents in the study area. All transport modes must be included in the model—not just private vehicles. The travel demand model must be created using a modelling Appendix 1 77

application such as TransCAD, CUBE, VISUM, or EMME. iii. It is important that the consultant develop a detailed coding of public transport service itineraries and stop locations as part of the model. All public transport itineraries must be programmed in the travel demand model. For example, each bus route should be coded as a separate public transport line in the model. Paratransit services operating on fixed routes should be coded in the same manner. Each route must be coded with its actual frequency as observed in the frequency occupancy survey. It is essential for the modelling process to take mode split as a dependent variable. The mode split should be a function of demographic characteristics, the availability of different transport facilities to the user and other factors, not an ex ante assumption. An iterative feedback loop should be used to generate the transport system characteristics and the resulting mode split. The modelling approach also must take into account the probably induced traffic impacts of capacity additions for personal motor vehicles (i.e., the possibility that roadway expansion may induce additional vehicle travel). iv. Traffic assignment for the existing scenario should be done for the peak hour (either morning or evening, whichever experiences higher overall passenger volumes). v. The Consultant should present the main data and assumptions used by the model. Specifically, the appendix should identify the components of the model, the calibration procedure, the procedure for estimating the mode split, and the procedure for modelling induced traffic. All modelling data and files should be shared with the Client directly as well as in a non-proprietary formats. vi. Base year scenario development and calibration: All existing roads and public transport services should be coded in the model, along with population and demographic data for the TAZs. This information will serve the basis of the base year scenario.

Task 5: Develop a public transport development plan i. Define growth scenarios and their implication on the network ii. Define the network improvements to operate public transport iii. Define the public transport network; iv. Define the public transport technology considering environmental safeguard and sustainability, and v. Prioritize the best option based on Economic analysis and financial due diligence, besides technology and sustainability. The options include extent of private financing, leasing etc.; vi. Safeguards in term of potential social and environmental impacts and a due diligence of impacts in terms of relocation and rehabilitation as well as an initial environmental exam natation of sub projects/ components. If required should be Prepare additional safeguard documents/reports i.e. vii. Consultant should develop a comprehensive evaluation framework in consultation with MDF and other stakeholders, taking into account all relevant factors such as capital and operating costs; environmental impacts; and the availability of services to the poor and other social impacts.

Task 6: Develop an implementation plan i. Costs of implementing the plan in terms of public transport; ii. Associated facilities such as Terminal, bus stops, smart technologies to manage service delivery iii. Bus stop/Terminal implementation plan to guide the construction of shelters at bus stops and terminals that currently lack them or where existing shelters are insufficient to handle current or expected passenger volumes. iv. Paratransit infrastructure implementation plan to guide the construction of shelters and other facilities to enhance the quality of paratransit services. Appendix 1 78

v. Rationalization of bus routes to achieve a simpler network that is legible to new users, reduce unnecessary vehicle-km, and provide increased service on high demand corridors. vi. Implementation of real-time passenger information and other information technology services across all public transport modes. vii. Prepare functional specifications for public transport; viii. Prepare draft bid document for the selected financing, and / or implementation option; ix. Define the regulatory framework for public transport operations and management of operations in each of the region, and x. a financing plan that is financially sustainable plan through a combination of fare box resources, state/ local revenue assignments in terms of grants/ policy subsidy/ viability gap and other possible commercial developments.

IV. IMPLEMENTATION ARRANGEMENTS AND STAFFING

17. The implementation will be led by the MDF and guided by a multi-agency steering committee.

18. The consulting services will be implemented by an international-consulting firm. It is anticipated that the below international and national staff will be required. The Consultant may propose an alternative staffing arrangement required to meet the objectives of the assignment and the time schedule requirements. The man month input required will be 47 with 20 of international and 20 national specialists.

V. REPORTS, TIME AND PAYMENT SCHEDULE

19. The consulting services will be implemented over 8 calendar months from the commencement date. The Consultant should attend and present progress work of the assignment at steering committee meetings, ADB missions, etc.

20. The following reports, in the English language, will be submitted by the Consultant to the Government (2 copies) and ADB (2 copies). The final report will also be submitted on CD- ROM:

Tasks Output Reports Submission- Months from Payment Schedule commencement (%) 1 Situation analysis report 2 5 2 Needs Assessment 4 15 3 Draft public transport development plan 6 40 4 Draft Implementation Plan 7 15 5 Final Report 8 10

VI. DATA AND REPORTS TO BE PROVIDED BY THE GOVERNMENT

21. The following will be provided by the Government:

(i) All available reports for completed or ongoing engineering, traffic, and social surveys; (ii) For the purpose of proposal preparation, the Consultant may examine the project documents at the MDF or associated transport department, and (iii) Coordination with other agencies as and when required.

Appendix 1 79

VII. STAFFING- QUALIFICATION AND EXPERTISE

22. All of the members of the consulting team must have excellent communication and interpersonal skills and they must be fluent in English. The key experts required for the Consultant’s team and their minimum qualifications and experience and minimum input are as follows:

23. Members of the consultancy team must have working experience in developing countries. Staff should be fluent in written and spoken English, fluency in Georgian would be an advantage. All team members must be present in Georgia when conducting their assignments.

Staffing

No. Position Qualification Person months I International Experts 1 Senior Transport 15 years of experience in planning for mobility in a 8 Specialist metropolitan/ regional context as well as transport /Deputy Team infrastructure, traffic systems, and implementation of leader sustainable transport systems. Should have handled at least 3 projects related to Transport / Mobility Planning. Implementation experience would be an advantage. 2 Senior Urban Around 15 years of experience in land use and transport 2 Planner (land planning, with a good understanding and experience in use and regional planning and regional development strategy as well transport) as in management of transit oriented development in a regional context (ribbon development). Should have a good understanding of legal and regulatory issues of Planning, land use and transport integration, bus rapid transport systems, pedestrian safety, and NMT infrastructure planning is advantageous. Experience in Georgia would be an advantage. 3 Senior Transport 15 years of experience, the Specialist should have thorough 2 Planner / Public knowledge and practical experience with public transport Transport modelling and route rationalization schemes, public transport Planning performance measurement, multimodal integration, Specialist intermediate public transport / Paratransit and NMT infrastructure, operations and planning. 4 Senior Transport Around 15 years of experience in modelling transport 2 Modelling networks. A good understanding of GIS software is required, Specialist and practical experience in integrating transport modelling and urban GIS-based mapping is essential. Should have modelled the system for at least 3 regions/ large Metro Area 5 Transport Around 15 years of experience in urban infrastructure finance 1 Finance with experience in financial analysis and modelling of a public Specialist transport (Metro/ Rail/Public Transport entity for a region a large metro area. 6 Transport Around 15 years of experience in economic analysis of 1 Economist infrastructure especially urban and/ or regional transport facility or of any public transport undertaking. 7 Environmental Degree in Civil Engineering / Masters in Environmental 1 Specialist services with around 10 years experience Should be conversant with the requirements of ADB and National Laws 8 Social Masters in Planning, Management Social Sciences or other 1 Safeguards degree with around 15 years experience in design of social safeguards measures for ADB or The World Bank Appendix 1 80

No. Position Qualification Person months Sub Total 18 II National Experts 1 Senior Urban Around 10 years of experience in land use and transport 2 Planner (land planning, with a good understanding and experience in use and regional planning and regional development strategy as well transport) as in management of transit-oriented development in a regional context (ribbon development). Should have a+D7 good understanding of legal and regulatory issues of Planning, land use and transport integration, bus rapid transport systems, pedestrian safety, and NMT infrastructure planning is advantageous. Experience in Georgia would be an advantage. Road safety Graduate in engineering with around 10 years of experience in 3 Engineer Road Safety measures of urban and regional context including traffic education measures 2 Senior Around 10 years of experience, the Specialist should have 3 Transport thorough knowledge and practical experience with public Planner / transport modelling and route rationalization schemes, public Public transport performance measurement, multimodal integration, Transport intermediate public transport / Paratransit and NMT Planning infrastructure, operations and planning. Specialist 3 Senior Degree in Civil engineering with specialization in highway 3 Highway design. Around 10 years of experience in carrying out Engineer feasibility and detailed design of highways. 4 Transport Around 10 years of experience in urban infrastructure finance 1 Finance with experience in financial analysis and modelling of a public Specialist transport Metro/Rail/Public Transport entity for a region a large metro area. 5 Quantity Bachelors in Civil Engineering with around 10 years of 2 surveyor experience in cost estimation and related activities. 6 Environmental Degree in Civil Engineering / Masters in Environmental 2 Specialist services with around 10 years experience Should be conversant with the requirements of ADB and National Laws 7 Social Masters in Planning, Management Social Sciences or other 2 Safeguards degree with around 15 years experience in design of social safeguards measures for ADB or The World Bank 8 Procurement Bachelors in Engineering with around 10 years of experience 1 Specialist in procurement planning and procurement support for infrastructure projects in the region. Conversant with procurement regulations of the ADB, The World Bank and FIDIC

9 AutoCAD Degree / Diploma with 10 years of relevant experience 3 10 GIS Specialist Degree / Diploma with 10 years of relevant experience 3 Sub-Total 25 Total 43

Appendix 1 81

PACKAGE 4: GEORGIA LIVABLE CITIES INVESTMENT PROGRAM TERMS OF REFERENCE FOR DESIGN OF STATION AREA IMPROVEMENTS, METRO UPGRADATION, BRT FEASIBILITYAND ASSOCIATED AREA DEVELOPMENT IN TBILISI

I. OVERVIEW

1. Tbilisi, the capital city of Georgia, contributes 70% of the national GDP, with just half of its urban population.1 The city’s urban population also increased from 47% to 51% of the country’s total between 2007 and 2017, while secondary cities in the regions of Kakheti and Samegrelo-Zemo Svaneti experienced declines in urban population during the same period. The reverse trend highlights issues such as out-migration, unbalanced economic growth, limited employment opportunities and poor livability of these urban regions. ADB undertook a National Urban Assessment (NUA) in 2015 that identified the need for balanced regional development to unlock the potential for inclusive economic growth through urban development by adopting multiple strategies, new initiatives, and innovative funding mechanisms at the national and regional level through integrated urban investment planning.2

2. The Asian Development Bank (ADB) and the Government of Georgia (GoG) reoriented urban sector operations to provide integrated and programmatic solutions for developing livable cities in Georgia that are economically competitive, socially inclusive, and environmentally resilient. 3 Since November 2016, ADB has supported the government to mainstream an integrated and participatory approach to urban development by improving strategic planning of selected urban area clusters to achieve a more balanced regional development by preparing Integrated Urban Action Plans (IUAPs). 4 Building on this, the government has prioritized crucial urban investments for ADB to take forward through feasibility studies and safeguards due diligence. These include integrated solutions that bring co-benefits to the citizens in the development of the urban clusters including water supply, sewerage and sanitation (including off-network solutions), urban transport and mobility (including nonmotorized and public transport), solid waste management, economic corridors, cultural and historical heritage conservation, flood control and drainage, urban safety and resilience, among others.

and Samegrelo-Zemo Svaneti region with Mestia as the hub–and one specific area in the city of Tbilisi. LCIP will help improve the livability of the urban area clusters and Tbilisi through three interlinked outputs: (i) improved adequacy and efficiency of urban infrastructure and services, improved accessibility, connectivity and attractiveness of regional tourism clusters, and (iii) enhanced institutional capacity for implementing and managing urban infrastructure and services.

9. The TOR (s) reflect the requirements of tranche 2 of the four tranches. Additional work for the subsequent tranches/additional projects if identified by GoG and ADB will be communicated to the consultants.

10. The management arrangement for this assignment is presented in Fig 1. and the Tbilisi Development Fund will be implementing agency for this task.

5 https://www.adb.org/sites/default/files/institutional-document/435391/strategy-2030-main-document.pdf.

Appendix 1 83

Table 1: Indicative Consulting Services Inputs. Package Skills/ Component Agency Indicative Person Month Executing Implementing International National Total 1 Feasibility and Detailed MRDI UWSCG 31 92 123 Design of Water Supply and Wastewater Components 2 Feasibility Study MRDI RD 23 55 78 and Detailed Design of “Strengthening, Widening and Rehabilitation of Regional and Urban Roads and Bridges” 3A Feasibility and Detailed MRDI MDF 26 87 113 Design of tourism destination and associated facilities in the priority regions of Georgia 3B Feasibility and MRDI MDF 39 38 77 Detailed Design of facilities to support local economic development through tourism related support activities and development of institutions 3C Developing regional MRDI MDF 18 25 43 public transport plan for select regions of the republic of Georgia Sub Total (MRDI) 137 297 434 4 Feasibility and Detailed TCH TDF 102 139 241 Design of (i) station area improvements and associated area development in Tbilisi, (ii) Metro improvements and (iii) BRTs 5 Feasibility Study and TCH TDF 37 62 99 Detail Engineering Design on the Development of Public and Tourist Transport Services on the Mtkvari River in Tbilisi Sub Total (TCH) 139 201 340 Tranche 1 41 90 131 Tranche 2 119 161 280 Tranche 3 96 207 303 Total 276 498 774 Appendix 1 84

Fig.1: LCIP- PRF Implementation Arrangements

11. The Tbilisi City Hall (TCH) component of the LCIP MFF will cover a range of investments including (i) enhance accessibility and improve mobility across modes around three Metro Stations (Akhmeteli Theater, Liberty Square and a third station as agreed with Tbilisi City Hall), with detailed engineering designs for urban redevelopment in and around the three station areas covering pedestrianization, inclusive design for universal accessibility, greenways, traffic management, parking management amongst others; (ii) improve tourist experience and address area development issues; (iii) improve public transport and mobility by way of upgrade of Tbilisi Metro and introduction of a Bus Rapid Transit system (BRT); (iv) Mtkvari river feasibility study and (v) detailed engineering designs based on the Mtkvari River FS subject to Government's confirmation. Tbilisi Development Fund (TDF) will be the implementing agency for this contract.

II. THE OBJECTIVES

12. The objectives of this assignment is to (i) enhance accessibility and improve mobility across modes around three Metro Stations (as agreed with Tbilisi City Hall), (ii) improve tourist experience and address area development aspects including old city rehabilitation, cultural heritage conservation (iii) improve public transport and mobility by way of upgrade of Tbilisi Metro and introduction of a Bus Rapid Transit system (BRT) and (iv) other possible urban transport projects to be further scoped during PRF stage. (list of activities for the three Station areas and associated are development as defined by TDF Attachment 1).

III. SCOPE OF WORK AND PROCESS

13. The scope of services under this TOR is in three parts. Part 1 encompasses station area and associated urban developments (Attachment 1 for scope and outputs) ; Part 2 covers rehabilitation/upgradation of existing systems in the metro, and Part 3 deals with feasibility study of a bus rapid transport system (BRTS) for Tbilisi (Attachment 2 for scope and details).

14. Part 1, 2 and 3 will be carried out in consultation with TDF/TCH and the Cities Development Initiative for Asia (CDIA). CDIA will prepare the FS for the three-station urban upgrading which will be followed by the detailed engineering design to be undertaken by the consulting firm under this package. As far as part 2 is concerned the scope of work is in terms of detail design, preparation of cost estimates, procurement planning and support in procurement. The key input for this part will be based on the CDIA supported, Pre-Feasibility Study for Tbilisi Metro Upgrade (Nov 2017). The consultant is also expected to coordinate with and provide support to ADB TA consultant teams in incorporating low carbon and climate resilient specification and costing in the detail designs as well as carrying out due diligence of the investment projects.

A. Part 1: Services to be carried out is four Stages for each of the three regions.

Stage 1 Preparation of Concept Plan Stage 1B Surveys, investigations and draft designs. Stage 2 Detail design, cost estimations and draft IFB document Stage 3 Procurement Support

Stage 1 A: Preparation of Concept Plan

15. Based on situation analysis of the and its potential, prepare a plan that integrates, and sequences development activities contemplated, including a preliminary packaging of activities in a way that enhanced mobility, attractiveness of the area by way improved public space and overall quality of life. Essentially the development elements should not be viewed 86 Appendix 1

in terms of sector/ in isolation but in a manner by which each element compliments the other to make the destination attractive. (Attachment 1 to be read with respective Concept Plans if any). The conceptual plan for Akhmeteli Theatre Metro station (of Akhmeteli-Varketili Line of the Tbilisi Metro) as well as similar attempts by TDH in terms of area development should be should be the base but the plan can look at activities beyond the suggested activities as long as it adds value to the program/ area-destination (s) objectives. The Plan should address: (i) Destination improvements (Station area and associated Historic Monuments, cultural facilities if any), in terms of restoration, rehabilitation or re-development; (ii) Associated basic environmental services to be provided such as water, wastewater, storm water and waste management arrangements; (iii) Need for public sanitation facilities such as comfort stations, (iv) Quality improvements such as beautification, landscaping etc., and (v) improvements required to enable access such as roads, paved footpaths, and associated facilities such as parking, signage, and street lighting.

Stage 1B Surveys, Investigation and Preliminary Designs

16. Based on approved concept plan, initiate surveys and investigation in parallel for the proposed improvements.

Stage 2 Preparation of Detail Design and Estimates

B. Technical:

17. For the activities as part of the theme, prepare technical designs, drawings and detailed costs. Cost should clearly indicate components to be bid, components that would be implemented by other agencies as deposit work and provisional sums to initiate unforeseen tasks as part of each contract package (See Attachment II for detailed requirements in the DPR): ▪ Costs should include costs of environmental management if any; ▪ Contract packages that reflect the theme as outlined in Step 1; ▪ O&M arrangements including costs and arrangements; ▪ Implementation options such as DBO, build operate etc. an recommend best option for each package; ▪ Prepare IFB Documents- would be embedded O&M contracts for a minimum period of5 years and wherever not possible, estimates should be provided to enable agency in engaging service contracts for O&M; ▪ Define specific activities that can be leased and develop appropriate lease agreements for individual/ community management;

C. Safeguards

(a) Based on the surveys, studies and analysis, develop rehabilitation and improvement options including capacity augmentation to provide acceptable level of service over the design period. (b) Facilitation of Stakeholders Workshop to assess the local communities’ views on the project; discuss design options, implementation and post- implementation impacts and mitigation measures and compile a stakeholders’ consultation report with recommendations for incorporation into final designs. (c) Preparation of a Social Impact Assessment in accordance with ADB`s Safeguard Policy Statement (SPS) 2009 and National Government`s Resettlement Policy. If required, prepare a Resettlement Action Plan (RAP) for each of the project road sections. The Social Impact Assessment Report shall cover at least: (i) description of demographic, geographic and socio-cultural background (including occupational, gender and ethnic) of the project area; Appendix 1 87

(ii) social and economic activities conducted in the project area and particularly along the roadway such as markets and agricultural produce, etc.; (iii) analysis of project stakeholders, potential direct and indirect impacts and social risks including differential gender impacts and issues in project design with possible social consequences, e.g. effects on livelihoods, disruption of social life and effects on pedestrian safety, etc.; (iv) recommendations on mitigation measures or alternative design features to address the potential adverse impacts identified, (v) recommended measures for public awareness during the construction phase and for stakeholder participation during the implementation and operational stages of the project; and potential social and economic benefits of the project to the country, project area and stakeholders.

D. Environmental

(a) An Environmental Impact Assessment in accordance with ADB`s Safeguard Policy Statement (SPS) 2009 and National Government`s Environmental Policy shall be carried out by the Consultant. To classify the environmental impact, the REA checklist needs to be prepared. Depending on the identified category of environmental impact, an IEE/EIA Report has to be submitted under this assignment. (b) Inclusion, within the IEE/EIA, of an assessment of the direct and indirect environmental impacts due to the project’s construction activities and during its operations. The study should clearly identify the areas of impact, provide an assessment of potential impacts and mitigation measures and involve public consultations with affected people and other relevant stakeholders. It should include an Environmental Management Plan (EMP) and clear institutional arrangements for its implementation and monitoring. (c) In preparing the IEE/EIA as a minimum the following issues must be investigated: (i) potential impacts on biodiversity including modified, natural, critical habitat and protected areas and necessary measures to minimize, mitigate and offset impacts; (ii) potential waste issues including hazardous materials and wastes and appropriate measures for their disposal, treatment and other forms of management; (iii) potential impacts of climate change and necessary adaption steps to accommodate climate change impacts into the project design; (iv) greenhouse gas emission levels with and without the project activities and measures that are technically and financially feasible to reduce or offset project related GHG emissions during project design, construction and operation stages; (v) occupational health safety issues and measures for the construction workers as well as the local communities in and around the project site; (vi) potential impacts on physical and cultural resources and measures to avoid, minimize or mitigate impacts; (vii) grievance redressal mechanism to address concerns and grievances of the affected people in the course of the project cycle.

E. Climate Change and Air Quality

(a) conduct an assessment of the air pollution sources and existing techniques adopted to reduce emissions in various sectors in Tbilisi, Georgia; (b) facilitate a national roundtable involving key stakeholders (including international donors) to present preliminary results and discuss the proposed strategies to 88 Appendix 1

mitigate air and greenhouse gases emissions in Tbilisi and other urban centers; 34 (c) based on the assessment propose technical roadmaps for air pollution prevention and emission reduction, with analysis of the corresponding emission reduction potentials (including greenhouse gas emissions); (d) facilitate outreach activities (i.e., workshops) focusing on policy makers, civil society, and the wider public to promote (for example, mobility plans, stricter vehicle emission standards, etc.); (e) identify gaps of local environmental agencies in technical capacity and propose training programs to close the gaps; (f) provide inputs in the LCIP preparation; and conduct other related tasks assigned by the team leader.

F. Gender

18. The consultant will provide support to team leader on Road and institutional assessment tasks above from the social development perspectives and conduct comprehensive social assessment and preparation of and will (i) conduct socioeconomic surveys if needed, in collaboration with other specialists; (ii) review government policies and strategies for poverty reduction and gender mainstreaming; (iii) conduct a public perception survey to identify issues and development priorities; (iv) conduct a poverty, social, and gender assessment to collect a baseline socioeconomic data (including sex-disaggregated baselines and proxy data) on program beneficiaries which further can be used for monitoring and evaluation purposes; (v) prepare a poverty reduction and social strategy, and (vi) prepare a gender action plan and other social action plans.

G. Economic Analysis and Financial Due Diligence

19. Each package should include an Economic analysis and financial due diligence as per the requirements of the ADB. The economic analysis should be in accordance with ADB’s Guidelines for the Economic Analysis of the Projects (2017).1

20. Financial Due Diligence: In coordination with the economists, the financial management would include an FDD in accordance with ADB’s requirements,2 which include the following tasks: (i) conduct a financial management assessment of the implementing agency, including (a) assessing whether previous financial management assessments have been conducted by ADB or other agencies and, if so, reviewing the results and ascertaining whether these can be used as input, (b) assessing FM staffing and capacity for planning and budgeting, management and financial accounting, reporting, auditing, internal controls, and information systems; (ii) reviewing proposed disbursement including any necessity or capacity for using advance procedure of the statement of expenditure procedures and funds-flow arrangements, (d) concluding on the financial management risk rating, (e) identifying risks arising from material deficiencies, and propose practical recommendations for improving financial management functions and/or staffing for financial operations needed to mitigate risks; (f) provide relevant detailed information to enable completion of the financial management sections, Risk Assessment and Risk Management Plan, and (g) explain to the government the financial management assessment, and relevant proposed financial risk mitigation measures;

1 A quick assessment will also be conducted for three cities in the region in coordination with MRDI. 2 ADB. 1998. Economic Analysis of Water Supply Projects. Manila; and ADB. 2017. Guidelines for the Economic Analysis of the Projects. Manila. Appendix 1 89

(iii) support the preparation and agreement of consolidated cost estimates for the ensuing projects and a financing plan, which are based on verifiable data and are sufficient to support project implementation; (iv) prepare financial projections and conducting financial analyses of the implementing agency, and incremental recurrent costs, to determine financial sustainability, and reviewing proposed cost-recovery and tariff policies, including affordability; (v) conduct financial evaluations (financial cost-benefit analyses) including sensitivity analyses of project components that have a cost-recovery objective; (vi) conduct financial sustainability and fiscal impact analysis with the emphasis on the availability of adequate financial resources to meet the incremental recurrent costs arising from the project, their ability to service ADB loan, and to provide the necessary counterpart funding during project implementation. This includes assessment of the financial status of the executing and implementing agencies in reference to their respective counterpart funding requirements for the project, where significant risks are identified to project financial sustainability or viability, propose relevant financial performance indicators to be incorporated in financial covenants; (vii) assess and reach agreement on financial reporting, auditing and public disclosure arrangements for the project, and, as appropriate, identify and agree on arrangements for receiving financial statements from executing agencies and implementing agencies; and (viii) prepare appropriate fund flow mechanism, disbursement schedule including contract awards and disbursements; and standard cost estimates tables (in coordination with the Procurement specialist), and provide costing and financial forecasting data for the economic analysis (in coordination with Economist).

Step 3 Procurement Packages (i) Definition of packages in terms of themes are proximity or any other criteria to reflect the development theme for the cluster(s)/site (s) (ii) CRAM Sheet for each package

Step 4 Procurement Assistance

21. Prior to bid submission for the civil works contract packages, the consultants will: (i) Finalize the bidding documents, and evaluation and qualifications criteria, and assist TDF in obtaining approval from ADB. (ii) Assist TDF issue approved bid documents to eligible contractors, assist MDF in the pre-bid meetings, answer contractor queries, and issue bid addenda as necessary. 22. Following submission of bids, the consultants will assist TDF to: (i) Carry out qualification evaluation of the bidders without opening the financial bids, and recommend qualified contractors. (ii) Evaluate the financial proposal of the qualified contractors. (iii) Undertake contract negotiations and in preparation and signing of final contract documents with successful bidders. (iv) In obtaining necessary approvals from ADB and other agencies. 90 Appendix 1

IV. REPORTING AND SCHEDULE

23. Tentative time for this assignment is 9 Months. The reporting schedule is as follows:

24. At every stage, within one-week period following submission of the documentation, the Employer will furnish the consultant with its remarks within 10 days. The consultant shall consider the above-mentioned for the following stage and introduce the respective amendments to the design documentation

V. CONTRIBUTION OF THE CLIENT

25. The Client will provide the Consultant with all available material that may be required for service execution.

VI. FORMAT AND PLACE OF SERVICE DELIVERY

26. The reports for all stages of service shall be submitted in writing.

27. Final documents of design-cost estimate along with the Bidding material shall be prepared in Georgian and English language and submitted in soft copy format (MS Word and Excel, whilst the graphical part will be submitted in AutoCAD or ArchiCAD formats). It is mandatory also the drawings to be provided in PDF format. The documents shall be provided on CDs (either CDs or DVDs). These documents are to be provided also as albums - 4 (four) copies (formats: A4 and A3).

VII. STAFFING

28. All of the members of the consulting team must have excellent communication and interpersonal skills and they must be fluent in English. The key experts required for the Consultant’s team and their minimum qualifications and experience and minimum input are as follows:

29. Members of the consultancy team must have working experience in developing countries. Staff should be fluent in written and spoken English, fluency in Georgian would be an advantage. All team members must be present in Georgia when conducting their assignments

No. Position Qualification Person months I International Experts 1 Team leader Degree in Civil Engineering/ Architecture/ Urban Planning with 12 /Engineer around 20 years’ experience in design of urban infrastructure development projects Appendix 1 91

No. Position Qualification Person months 2 Road engineer/ Civil Engineer with 15 years’ experience in Road and Transport 4 Transport infrastructure with experience of implementation of similar size Engineer and type projects (urban roads, pedestrian facility, area traffic management and road safety) 3 Topographer Civil Engineering preferably with specialization in Geodesy/ 3 Topography. Around 15 years’ experience of implementation of similar size and type projects (design services); 4 Geotechnical Around 15 years of experience in modelling transport networks. A 4 Engineer good understanding of GIS software is required, and practical experience in integrating transport modelling and urban GIS- based mapping is essential. Should have modelled the system for at least 3 regions/ large Metro Area 5 Architect Degree in Architecture with around 15 years’ experience of 4 implementation of similar size and type projects is a must 6 Structural Civil Engineering with specialization in structural Engineering with 4 Engineer experience in designing of road related structures (culverts, bridges, retaining walls and etc.), as well as specialized Buildings (Historical and Cultural). 7 Environmental Degree in Civil Engineering / Masters in Environmental services 1 Specialist with around 10 years of experience Should be conversant with the requirements of ADB and National Laws 8 Social Masters in Planning, Management Social Sciences or other 3 Safeguards degree with around 15 years of experience in design of social safeguards measures for ADB or The World Bank 9 Air Pollution and Master degree in environmental engineering, policy or other 3 Climate change relevant fields; (ii) 20 or more years of experience with air specialist pollution control measures; (iii) demonstrated experience in environmental impact assessment of air pollution control strategies; (iv) experience with environment safeguard policy requirements from international financial institutions; (v) demonstrated experience on urban air pollution and climate change mitigation strategies in Central West Asian countries, and (vi) proficiency in the English language. METRO COMPONENT 1 Metro Expert Degree in Civil Engineering, preferable with a Masters in Structure. 10 0 Deputy Team Total Design Experience – 20 Years or more with 10 Leader Metro Years or more Relevant Design Experience in the role of project manager/ Deputy Project manager in Metros works. 1 Mechanical, Degree in Electrical/ Mechanical engineering with 15 years of 4 1 Electrical experience and 10 Years or more relevant Design Experience in Plumbing the role of Lead Senior MEP engineer in field of MEP works in Engineer Metros/ Heavy Infra/ Industrial area. 1 Underground Degree in Civil/ Structures with around 20 years experience with 4 2 and Tunnelling 10 Years or more relevant Design Experience in the role of Lead Expert designer for underground structures or Senior structural engineer in field of underground structures in Metros works. 1 TVS and VAC Degree in Electrical/ Mechanical engineering with 15 years of 4 3 expert experience and 10 Years or more relevant Design Experience in the role of Lead Senior engineer in field of tunnel ventilation and ventilation and air-conditioning systems in Metros/ Heavy Infra/ Industrial area. 6 Architect Degree in Architecture with around 15 years’ experience in design 3 and implementation of Metro Projects of similar size and type projects is a must 92 Appendix 1

No. Position Qualification Person months 1 Other Provisional BIM coordinator, Track, Electrical and Mechanical engineers, 10 4 Archaeologists etc.

BRTS 1 Deputy Team Masters in Plan (Transport Planning) or Urban Planning with 10 Leader around 15 years of experience in planning and implementing major transport infrastructure, and at least 5 years in design of BRTS corridor/system. 2 Urban Transport Must be M.Plan (Transport Planning)/M.Tech./M.E. with minimum 4 Planner 10 years of experience, with around 5 years in BRTS planning/implementation, conducting of field surveys and travel demand modelling. 3 Civil Engineer Masters in Highway Engineering with minimum 10 years of 7 experience in design of arterial road, intersection etc. [BRTS preferable] (or) B.E. in Civil Engineering with minimum 15 years’ experience in design of arterial road, intersection. [ BRTS preferable] 5 Urban Designer M.Arch. or equivalent with minimum 10 years’ experience in 3 urban street design including intermodal integration, NMT, etc. Experience in the design of BRTS system is preferred. 6 ITS Expert Must be B.E./ B.Tech. Computer Science/ECE/EEE/ IT with 5 experience in development of ITS for road sector projects [BRTS preferable]. Sub Total 102 II National Experts 1 Road engineer/ Civil Engineer with 15 years’ experience in Road and Transport 7 Transport infrastructure with experience of implementation of similar size and Engineer type projects (urban roads, BRT, pedestrian facility, area traffic management and road safety) 2 Topographer Civil Engineering preferably with specialization in Geodesy/ 7 Topography. Around 15 years’ experience of implementation of similar size and type projects (design services); 3 Geotechnical Around 15 years of experience in modelling transport networks. A 7 Engineer good understanding of GIS software is required, and practical experience in integrating transport modelling and urban GIS-based mapping is essential. Should have modelled the system for at least 3 regions/ large Metro Area 4 Architect Degree in Architecture with around 15 years’ experience of 5 implementation of similar size and type projects is a must Architect Degree in Architecture with around 15 years’ experience of 4 implementation of BRT and MRTS similar size and type projects is a must. 5 Structural Civil Engineering with specialization in structural Engineering with 9 Engineer experience in designing of road related structures (culverts, bridges, retaining walls and etc.), tunnels as well as specialized Buildings (Historical and Cultural). 6 Quantity Bachelors in Civil Engineering with around 10 years’ experience in 7 surveyor cost estimation and related activities.

7 Environmental Degree in Civil Engineering / Masters in Environmental services 5 Specialist with around 10 years of experience Should be conversant with the requirements of ADB and National Laws Appendix 1 93

No. Position Qualification Person months 8 Social Masters in Planning, Management Social Sciences or other 6 Safeguards degree with around 15 years of experience in design of social safeguards measures for ADB or The World Bank 14 Other Provisional BIM coordinator, Track, Electrical and Mechanical engineers, 10 Archaeologists etc. BRTS 1 Deputy Team Masters in Plan (Transport Planning) or Urban Planning with 10 Leader around 15 years of experience in planning and implementing major transport infrastructure, and at least 5 years in design of BRTS corridor/system. 2 Urban Transport Must be M.Plan (Transport Planning)/M.Tech./M.E. with minimum 4 Planner 10 years of experience, with around 5 years in BRTS planning/implementation, conducting of field surveys and travel demand modelling. 3 Civil Engineer Masters in Highway Engineering with minimum 10 years of 7 experience in design of arterial road, intersection etc. [BRTS preferable] (or) B.E. in Civil Engineering with minimum 15 years’ experience in design of arterial road, intersection. [ BRTS preferable] 5 Urban Designer M.Arch. or equivalent with minimum 10 years’ experience in 3 urban street design including intermodal integration, NMT, etc. Experience in the design of BRTS system is preferred. 6 ITS Expert Must be B.E./ B.Tech. Computer Science/ECE/EEE/ IT with 5 experience in development of ITS for road sector projects [BRTS preferable]. Sub Total 102 II National Experts 1 Road engineer/ Civil Engineer with 15 years’ experience in Road and Transport 7 Transport infrastructure with experience of implementation of similar size and Engineer type projects (urban roads, BRT, pedestrian facility, area traffic management and road safety) 2 Topographer Civil Engineering preferably with specialization in Geodesy/ 7 Topography. Around 15 years’ experience of implementation of similar size and type projects (design services); 3 Geotechnical Around 15 years of experience in modelling transport networks. A 7 Engineer good understanding of GIS software is required, and practical experience in integrating transport modelling and urban GIS-based mapping is essential. Should have modelled the system for at least 3 regions/ large Metro Area 4 Architect Degree in Architecture with around 15 years’ experience of 5 implementation of similar size and type projects is a must Architect Degree in Architecture with around 15 years’ experience of 4 implementation of BRT and MRTS similar size and type projects is a must. 5 Structural Civil Engineering with specialization in structural Engineering with 9 Engineer experience in designing of road related structures (culverts, bridges, retaining walls and etc.), tunnels as well as specialized Buildings (Historical and Cultural). 6 Quantity Bachelors in Civil Engineering with around 10 years’ experience in 7 surveyor cost estimation and related activities. 7 Environmental Degree in Civil Engineering / Masters in Environmental services 5 Specialist with around 10 years of experience Should be conversant with the requirements of ADB and National Laws 94 Appendix 1

No. Position Qualification Person months 8 Social Masters in Planning, Management Social Sciences or other 6 Safeguards degree with around 15 years of experience in design of social safeguards measures for ADB or The World Bank 9 Economist Masters in Economic, Management, Finance, Cost/ Chartered 4 Accounting with around 10 years of experience in infrastructure project economic analysis 1 Financial Masters in Business Management, Finance, Cost/ Chartered 4 0 Management Accounting/ CPA/ACCA with experience in financial due diligence, Specialist with around 10 years’ experience in infrastructure project financial analysis and financial management assessment of the implementing agency 1 Procurement Bachelors in Engineering with around 10 years of experience in 7 1 Specialist procurement planning and procurement support for infrastructure projects in the region. Conversant with procurement regulations of the ADB, The World Bank and FIDIC 1 Gender Advanced/ Masters Degree in Gender, Sociology, Anthropology, 5 2 Specialist Development Studies, or other related Social Science fields with (common for all around 10 years of professional level experience in gender activities under mainstreaming, analysis, research, designing gender policies, this package) strategies, guidelines, and training manuals and regional, national and local level experience, and substantial knowledge of the social and gender issues. Experience with ADB or World Bank project a necessity 1 AutoCAD and Degree / Diploma with 10 years of relevant experience 32 3 GIS 1 Provisional To be defined: Cultural Specialist, Conservation specialist 30 4 Archaeologist, Electrical Engineer, Energy Auditor Urban Designer Sub-Total 139 Total 241

Appendix 1 95

Attachment 1: Outputs by Stages - Station Area Development1

Stage 1 Conceptual Stage

Report, without being limited to the following: 1. Outline concept integrating various elements of the destination and outline packaging covering development themes; 2. Explanatory Note (including detailed description of problematic issues); 3. Topographic survey of the site (Topographic plan through UTM System of Coordinates: Scale 1: 200); 4. Cadastral documentation (including project and actual situation on topographic plan, layout of registered land plot(s) with indication of cadastral borders and a code); 5. Layout plan for location of the project site - Scale: 1:1000 or 1:500; 6. Initial study of archaeologist, art historians, energy experts, environmentalists, structural engineers and others as required by the specific destination (s) and, recommendations, including landscape context, accompanied with proper schemes, photographic materials, connections, and routes; 7. A project concept – with specified project site parameters, structural and technical solutions, including the overall site plan; 8. Feasibility study covering all possible options, analysis of problems and risks, parameters and scales of the sub-project (including financial scales along with estimated budget), estimated method and schedule of implementation; and 9. Classified photo material: general views of the project site, fa ades, interior, valuable elements from architectural-art standpoint, photos reflecting general and local damages Outcomes of engineering-geological survey – technical report, conclusions and recommendations (assessment of physical-mechanical features of soil, laboratorial analysis of samples, elaboration and conclusion of results).

Surveys 1. Report on engineering-technical survey, including the information and schemes concerning connection to the utilities - water, sewage, electricity, gas or others; 2. Hydrological report; 3. Photos of high quality and resolution – TIFF/JPEG expansion file).

Output 1. Following completion of exploration-survey works and upon submission of the respective reports, rehabilitation methods and concept, the Employer will specify sub-project scope and parameters, and likely solutions, which will be followed by decision on commencement of the next stage works. After initial survey, the Employer may come up with a decision to suspend works services on any of the components, based on the findings and recommendations.

Stage 2 Detailed Project Report

Report, without being limited to the following: 1. Explanatory Note (providing description of existing situation and arrangements stipulated by the project);

1 As outlined by MDF for standard projects. 96 Appendix 1

2. Topographic plan including cadastral borders and code(s); 3. Cadastral documentation (to include in the design and status quo topographic plans the registered land plot(s) outline with indication of cadastral boundaries and codes); 4. Layout plan for location of the project site - Scale 1:1000 or 1:500; 5. General location and master plans of the project site (scale 1:2000; 1:10000; 1:500); 6. Master plan, with topographic mapping of the design area, with showing of red lines scale 1:500; 1:1000; 7. Drawings (plans, sections, facades); 8. Solutions: graphic and textual material – layouts, sections, elevations; 9. Structural solutions, and 10. Report on Environmental/Social survey and, IEE and Due Diligence / RP for project packages.

Attachment 2: Scope of Bus Rapid Transit System for Tbilisi

A. SCOPE OF WORK BRT

1. The main objective of this task includes: (a) A feasibility report for operationalizing a BRT system and associated public transport improvements and (b) Detailed Project report on ―Bus Rapid Transit System (BRTs) and associated improvements for the city of Tbilisi.

B. DETAILED SCOPE OF TASKS

2. The consultant will build on the ongoing transport planning initiatives of Tbilisi City Hall (TCH) in terms of improving public transport and mobility. The scope includes a feasibility for BRT followed by detailed engineering design and associate support in procurement of contractors/ service providers for the proposed facility.

3. The planning and design process will be based on consultations with stakeholders. All consultations, assessment findings and responses should be submitted as a separate report.

4. Task 1: Concept Plan: The first stage will include preliminary concept and options plan including the pre-feasibility/ feasibility. This would be based on: (i) Review of City Transport Plan and associated studies including proposed expansion of Metro by CTC; (ii) Situation analysis of public transport and network arrangements in Tbilisi; (iii) Existing institutional and regulatory arrangements in management of public transport and transport infrastructure; (iv) Travel Demand assessment covering: (v) Travel demand Analysis and estimation of future demand (vi) Public Transport Surveys to assess quality, quantity and efficiency, (vii) Traffic analysis in terms of speed, delay, volume/capacity and level of services Using appropriate survey tools such as: (viii) Household survey to understand travel behavior, O-D patterns (ix) Boarding-alighting surveys, travel speeds etc., (x) Bus Frequencies, Occupancy surveys, Economics of PT Operations, Fuel options (xi) Speed and delay surveys (xii) Willingness to pay and shift surveys (xiii) Based on preliminary assessment of systems and transport surveys and investigations, Define: a. Service typologies on proposed corridors along with street sections, alignments, and intersection options; b. Infrastructure (hardware & software) - rolling stock; station and terminals; and depot typologies including parking and workshops; other associated facilities; IT applications such as Control centers, Fare collection systems, Passenger Information Systems, Vehicle Monitoring Systems, Asset Monitoring Systems, Operations Monitoring Systems. c. Integrated Services (physical, fare, information, institutional etc.,) d. Fare and non-fare revenue policies, fare structure and subsidies e. Revenue Assessments from the system such as: • Fare income from all BRT and non-BRT services including trunk, direct and feeder services (Segregate existing and proposed system) • Lease of space, advertising etc. 98 Appendix 1

• Policy subsidies from TCH/CTC • Land value capture of property development around the corridor • Other potential non-fare revenue sources (xiv) Fleet Management: Size, Mix, Technology, specifications, (xv) Preliminary cost of the proposed system; (xvi) Economic and financial analysis of finalized options; (xvii) Social and Environmental impact assessment of options, and (xviii) Assessment of Operation & Maintenance Costs for different implementation options and technology(s).

5. Task 2: On Approval, the consultant will prepare detailed engineering reports and associated documentation to invite bids/ contracts.

6. The outputs/ tasks would include:

(i) Integrated traffic management plan of the corridor; (ii) DPR including: a. Layout plan of the facility and detailed drawings (corridor design, station design, bus design, the station-bus interface, terminals, and depots, Station Access plans, Signage, Signaling Etc.,) b. Structural elements c. Public transport options, routes d. Bus Technology, procurement arrangements; e. Modal integration arrangements f. Detailed cost estimates (Capex and O&M) • For BRT corridors and associated infrastructure • Infrastructure, including utility relocation, property acquisition (if necessary), • Public Transport investments • Associated costs of depots, modal integration and allied infrastructure • Communication and Information technology • Safeguards implementation costs: EMP and Resettlement and Rehabilitation if any g. The O&M Costs reflecting: • Facility Management Costs; • Bus operations in all the possible modes i.e. on contract (purchase, operations, and maintenance of buses), by existing Undertakings/ operators, mixed mode etc. • Fare collection and IT contract(s) (purchase and operations of hardware/software) comparison with the existing system in use. • Station service contracts • Infrastructure and associated facility maintenance costs h. Economic and financial analysis of the proposed investments i. Land acquisition and Resettlement actions required if any j. IEE/ Environment management plans k. Gender dimension in public transport and action plan l. Institutional, implementation and management arrangements (iii) Bus Technology, procurement arrangements; (iv) Arrangements for shifting of utilities; Appendix 1 99

(v) Procurement Plan and IFB documents for goods, works and services (PMC); and (vi) Business plan for BRT facility

7. Task 3: Procurement Support: Support TDF in procurement of contractor (s) for works, goods and services (including PMSC).

C. REVIEW COMMITTEE

8. The successful consultant deliverables will be evaluated by a Review Committee consisting of following. Representative(s) from, ▪ Tbilisi City Hall ▪ City Transport Company ▪ Tbilisi Development Fund ▪ Subject experts

Timeline Submission Submission in Weeks from Start Inception Report- Review of existing systems and preliminary 4 assessment, methodology, surveys and survey schedule. Interim Report -Concept Plan covering Task 1 of the Scope of work with 16 periodic submissions as appended in table below. Draft final report Covering Task 2 and 3 32 Final Detailed Project Report 36

Specific Reports: Report Details Calibrated The public transport network, including stops, terminals, workshops and Demand Model depots, routes, interchanges, fares, and speeds. ▪ Model peak-hour passenger demand for each route, including corridor volumes on public transport, boarding and alighting per stop, and boarding per route ▪ Forecast of origins and destinations for trips by public transport users and other road users at the time of opening of the BRT system and 5, 10, 15, and 20 years after implementation. ▪ Estimate of the shift of passengers from other modes, such as private vehicles, IPT, to the new BRT system. ▪ Forecasts for peak-hour and off-peak demand for BRT services, feeder services and non-BRT services. ▪ Detailed estimates of BRT demand, including directional boarding and alighting at each proposed BRT station/ interchange/terminal during each time period. Service Plan ▪ Frequency of buses and provision of limited/express bus service based on peak-hour and off-peak demand. The Plan will be based on: ▪ BRT route options, frequency, service type and schedules during peak/off peak periods ▪ Service extensions/ modifications: BRT services and routes beyond the proposed xxx km network, factoring Metro expansion proposals ▪ Rationalization of routes of existing CTC systems ▪ Integration of BRT and Non-BRT services, and Metro 100 Appendix 1

Report Details ▪ BRT and non-BRT fleet size and composition, classified by type of vehicle, in the initial year of operations and after 5 and 10 years, and schedules. ▪ Operations Plan- frequencies and schedule Fare Systems Based on review existing fare structure, levels and tables used in Tbilisi, including overall public transport fare policy, and the policy for discount (concession) fares, levels of policy subsidy (if any) on all transport modes. Plan should reflect: ▪ Fare Policy ▪ Fare Structure ▪ Farebox and Non Farebox revenue potential Fare integration ITS and Present a plan describing the broad functional requirements of the following ITS communication components, including but not limited to: Plan ▪ Passenger Information System (PIS) on vehicles and at stations to provide real-time information to passengers on their schedule time of arrival of buses; ▪ Automatic Vehicle Location (AVL) for real-time tracking of the position of the BRT vehicles along the routes; ▪ Automatic Fare Collection (AFC) using contactless smart cards and/or near-field communication-enabled phones; ▪ Access control system for the terminals and depots; ▪ Security systems for buses, stations, and terminals. ▪ Traffic signal control at BRT corridor junctions, including mechanisms for bus priority; ▪ BRT Control Centre (CC) to monitor PIS, AVL and AFC and to use real- time data to manage passenger flow at stations and terminals, monitor signals, and manage the traffic movements along the BRT corridor. ▪ Customer Service information center. ▪ Management information system (MIS). ▪ Detailed specifications for ITS components Procurement Plan Institutional Reflecting the review of the existing systems and options of new vs existing structure and systems, integration possibilities of existing and proposed management and Implementation O&M arrangements, recommendations on: Arrangement ▪ The overall management arrangements for the facility; ▪ Distribution of responsibilities of managing O&M of infrastructure components (Roads and other BRT facilities) Consultant will develop a structure for management of the BRT system- revamp of existing systems and/or through a dedicated special purpose Unit (SPU)/Special purpose Vehicle (SPV). ▪ Contracting mechanisms for implementation and O&M/ Service delivery of components such as: bus operations; fare collection and ITS; station and corridor maintenance; and traffic management. ▪ Staffing and financial plans for the proposed arrangements Institutional Action Plan and timelines Appendix 1 101

Report Details Infrastructure The Consultant will prepare a detailed Infrastructure Plan including the Plan following components: including associated equipment’s and installation ▪ Corridor design ▪ Stations ▪ Terminals. ▪ Depots, Workshops ▪ Control center Fleet The final DPR should present: o Fleet size, composition o Suggested technology o Bus specifications o Procurement options- ownership/ lease (Wet/Dry) o Procurement Plan o Selection criteria for procurement options o Manpower deployment and associated legal requirements

102 Appendix 1

PACKAGE 5: GEORGIA LIVABLE CITIES INVESTMENT PROGRAM TERMS OF REFERENCE FEASIBILITY STUDY ON THE DEVELOPMENT OF PUBLIC AND TOURIST TRANSPORT SERVICES ON THE MTKVARI RIVER IN TBILISI

I. BACKGROUND

1. Tbilisi, the capital city of Georgia, contributes 70% of the national GDP, with just half of its urban population.37 The city’s urban population also increased from 47% to 51% of the country’s total between 2007 and 2017, while secondary cities in the regions of Kakheti and Samegrelo- Zemo Svaneti experienced declines in urban population during the same period. The reverse trend highlights issues such as out-migration, unbalanced economic growth, limited employment opportunities and poor livability of these urban regions. ADB undertook a National Urban Assessment (NUA) in 2015 that identified the need for balanced regional development to unlock the potential for inclusive economic growth through urban development by adopting multiple strategies, new initiatives, and innovative funding mechanisms at the national and regional level through integrated urban investment planning.38

2. The Asian Development Bank (ADB) and the Government of Georgia (GOG) reoriented urban sector operations to provide integrated and programmatic solutions for developing livable cities in Georgia that are economically competitive, socially inclusive, and environmentally resilient. 39 Since November 2016, ADB has supported the government to mainstream an integrated and participatory approach to urban development by improving strategic planning of selected urban area clusters to achieve a more balanced regional development by preparing Integrated Urban Action Plans (IUAPs).40 Building on this, the government has prioritized crucial urban investments for ADB to take forward through feasibility studies and safeguards due diligence. These include integrated solutions that bring co-benefits to the citizens in the development of the urban clusters including water supply, sewerage and sanitation (including off- network solutions), urban transport and mobility (including nonmotorized and public transport), solid waste management, economic corridors, cultural and historical heritage conservation, flood control and drainage, urban safety and resilience, among others.

37 National Statistics Office of Georgia. 2019. https://www.geostat.ge/en/modules/categories/41/population (accessed on 14 October 2019). 38 ADB. 2016. Realizing the Urban Potential in Georgia: National Urban Assessment. Manila. 39 ADB’s Urban Operational Plan 2012-2020 fosters the growth of Competitive, Inclusive, and Green Cities to improve the performance of cities on the Economic, Equity, and Environment (3Es) fronts. It focuses on 3 innovative approaches to guide the development of livable cities, which is a long-term process, achieved best through integrated planning and implementation of investment. 40 TA-9220 is aligned with the strategic thrust of the COBP, 2015–2017 and the CPS priorities particularly in supporting the government to make essential drinking water, sewerage, and sanitation services more accessible and reliable, in smaller towns and secondary cities that are potential hubs for agribusiness and tourism. TA is also aligned with ADB’s country partnership strategy for Georgia, 2014–2018, which recommends developing municipal plans to make essential drinking water, sewerage, and sanitation services more accessible, reliable, and energy-efficient. Appendix 1 103

urban area clusters—North Kakheti region with Akhmeta as the hub, Samegrelo-Zemo Svaneti region with Zugdidi as the hub, and Samegrelo-Zemo Svaneti region with Mestia as the hub–and one specific area in the city of Tbilisi. LCIP will help improve the livability of the urban area clusters and Tbilisi through three interlinked outputs: (i) improved adequacy and efficiency of urban infrastructure and services, (ii) improved accessibility, connectivity and attractiveness of regional tourism clusters, and (iii) enhanced institutional capacity for implementing and managing urban infrastructure and services.

10. The Tbilisi Development Fund (TDF) will be the implementing agency for this task.

41 https://www.adb.org/sites/default/files/institutional-document/435391/strategy-2030-main- document.pdf. 104 Appendix 1

Table 1: Indicative Consulting Services Inputs Package Skills/ Component Agency Indicative Person Month Executing Implementing International National Total 1 Feasibility and Detailed MRDI UWSCG 31 92 123 Design of Water Supply and Wastewater Components 2 Feasibility Study MRDI RD 23 55 78 and Detailed Design of “Strengthening, Widening and Rehabilitation of Regional and Urban Roads and Bridges” 3A Feasibility and Detailed MRDI MDF 26 87 113 Design of tourism destination and associated facilities in the priority regions of Georgia 3B Feasibility and MRDI MDF 39 38 77 Detailed Design of facilities to support local economic development through tourism related support activities and development of institutions 3C Developing regional MRDI MDF 18 25 43 public transport plan for select regions of the Republic of Georgia Sub Total (MRDI) 137 297 434 4 Feasibility and Detailed TCH TDF 102 139 241 Design of (i) station area improvements and associated area development in Tbilisi, (ii) Metro improvements and (iii) BRTs Appendix 1 105

5 Feasibility Study and TCH TDF 37 62 99 Detail Engineering Design on the Development of Public and Tourist Transport Services on the Mtkvari River in Tbilisi Sub Total (TCH) 139 201 340 Tranche 1 41 90 131 Tranche 2 119 161 280 Tranche 3 96 207 303 Total 276 498 774

II. GENERAL OVERVIEW A. Background

11. From the establishment of Tbilisi to the present day, the Mtkvari River has played a significant part in the visual identity, cultural heritage and development of the city. The river provides critical water resources for more than 1.25 million persons (25% of country’s population). To date, though, the actual potential of the river as a tourist hub has not been fully realized.

12. With the introduction of river transport services, the Mtkvari River will be further integrated into the urban setting, which will lead to enhanced economic development through tourism and improved mobility. The proposed study will determine the feasibility of the river for transport and tourism services.

B. Geographic description

13. The Mtkvari River is the largest river of Caucasus. Its length within the boundaries of Tbilisi City is 31 kilometers, and the river’s length within the greater Tbilisi metropolitan area exceeds 0 kilometers. A 15-kilometer section of the river - from Ksani Street up to Dirsi apartment house - is channelled. According to the data of Tbilisi hydro station, the Mtkvari River catchment area totals 21 100 km2. The average stream flow is 202 m3/sec with a mean of maximal stream flow at 325 m3/sec and a mean of minimal stream flow at 133 m3/sec. The absolute peak stream flow averages 2450 m3/sec.

a. In Tbilisi city area, 16 tributaries of order I (11 right, 5 left), and 69 tributaries of orders II and III flow into the Mtkvari River (most of them are gorges with temporary, seasonal run-off). The most notable right tributaries of the Mtlvari River are: Dighmistskali, Vere, Bagebistskali, Krtsanisis Khevi (Tabakhmela, Dukani), Tsavkisis Khevi (Leghvta, Samarkha), Avaantkhevi (Sololaki), Varazis Khevi and Gabanaant Khevi. Left tributaries are as follows: Gldanistskali (Gldanula), Khevdzmari, Kukiis Khevi (Didkhevi, Arsenali), Chughuretis Khevi (Avlabari) and Dolabauris Khevi.Part of the above-referred watercourses is directly running into the Mtkvari River through open- channel flow, while a majority of these watercourses is connected to the tail reach of the river via artificial tunnels and culvert pipes.

b. With increasing vehicle traffic volumes in Tbilisi, delays to both passenger travel and logistics inhibit economic productivity as well as produce pollution, noise, and road 106 Appendix 1

safety problems. Development of transport, tourism, and recreational services along the Mtkvari River will both improve mobility conditions in the city as well as contribute to economic growth. Tbilisi has already gradually transformed into an attractive touristic location. To date the Mtkvari River’s contribution to tourism has not been fully explored, and this study will determine the feasibility of doing so.

C. Project location

14. The project site for the proposed river services is located within administrative boundaries of Tbilisi Municipality and covers the Mtkvari River section from Ortachala hydro power station (HPS) to Zemo Avchala hydro power station.

III. GOALS AND OBJECTIVES

A. Scope of Services

15. The study will determine the feasibility of water transport services on the Mtkvari River. The work will include a detailed analysis of the Mtkvari river-bed and preparation of the associated survey studies on the hydrological, ecological, engineering, ichthyofauna, and transport (navigation) conditions. The work will also include the identification and costing of the required associated infrastructure and equipment, including vessels, structures/buildings, quays, launch points, pedestrian access, pipelines, bridges, and electric service lines, located in or crossing the riverbed. The analysis will also analyze the financial and economic justification of the potential investment in transport and touristic development of the Mtkvari River.

16. Under the survey, the Consultant shall prepare recommendations concerning measures aimed at identification of navigation routes (passenger and touristic) on the Mtkvari River, and namely in the section covering the distance from Ortachala HPS to Zemo Avchala HPS. If required for safe navigation of vessels, the Consultant shall also produce a conceptual design of river-bed formation.

17. Subject to the findings and viable options identified by the feasibility study, detailed designs of the public transport and touristic development of the Mktvari River will be prepared accordingly. It is expected that the designs shall incorporate nature-based solutions and ensure climate-friendly and climate resilient public transport and tourism development on the Mtkvari River.42

Part I Feasibility Study

A. Objectives of feasibility study

18. The principal activities and objectives of this Feasibility Study on the transport services on the Mtkvari River are:

a. Determine the ridership potential for tourist and commuter services on the Mtkvari

42 The consultant is expected to coordinate with and provide support to ADB TA consultant teams in incorporating low carbon and climate resilient specification and costing in the detail designs. Appendix 1 107

River; b. Identify routes, within Ortachala HPS - Zemo Avchala HPS section, for navigation of passenger and touristic vessels; c. Determine locations for arrangement of vessel quays/deployment points; d. Determine the types of passenger and touristic vessels (considering their overall dimensions and other technical parameters), which will be able to safely navigate on the Mtkvari River in an environmentally sustainable manner; e. Determine the associated infrastructure requirements (passenger access, piers and quays, boat launches, commercial kiosks and shops, catering facilities, public space, etc.) and provide a preliminary costing of such infrastructure; and f. Conduct an economic analysis and financial due diligence of the proposed services.

B. Surveys

19. Hydrological survey: The hydrological survey shall encompass the following activities and outputs for the portion of river under consideration for transport and tourist services.

a. Determine predictive values of water level parameters in the river-bed (maximal, minimal) by time of year and zonal location, considering period and duration of water discharges by the “Ortachala” HPS; draw up high water and low water diagrams; b. Determine river-bed widths in characteristic sections; c. Identify the inundated and erosion-prone areas of riverbanks: In sections of the river where navigation will be problematic due to low water levels, determine the potential for dredging; provide the key parameters on the dredging requirements, including the surface area (length/width) and depths of the created basin; d. Assess the flood and torrent risks along the project section of the river; e. Identify existing isles existing in the river and evaluate their stability; f. Conduct a bathymetric survey of the riverbed; and g. Identify the materials (sand, crushed-stone, sludge) settled in the riverbed and determining volumes preventing navigation process.

20. Engineering survey: The engineering survey work shall encompass the following activities and outputs:

a. Conduct an engineering analysis of the storage dam and determine the dam’s stability against the potential increased volume of dammed water resulting from river dredging activities; b. Analyse the need for coast-protection arrangements on the riverbank; c. Identify and map the infrastructure, including structures/buildings, pipelines, bridges, electric service lines (subways, tunnels, communications) located on or under the Mtkvari River; andd d. In the case that dredging will be required on the project section of the Mtkvari River, estimate the possible impact and risk factors on bridges, pipelines and other utilities existing in the design area.

21. Ecological survey: The ecological survey work shall encompass the following activities and outputs:

a. Provide an overall characterization of the present ecological conditions of the Mtkvari River 108 Appendix 1

b. Conduct an initial project impact assessment, taking into account all aspects related to environmental safeguards, including but not limited to: river bank erosion; pollution; and necessary mitigation measures. c. Conduct water quality testing on the river; Outline the options for the mitigation of the possible negative impact caused by river transport on the water quality of the river. d. Identify the species of ichthyofauna prevailing in the design area, and determine the potential impact of the project on habitat loss, degradation and fragmentation, and species disturbance and displacement

C. Transport Operational Analysis

22. Demand analysis:

a. Identify and map the existing land-use adjacent to the project section of the Mtkvari River, including the identification of main residential sites and points of tourist attraction (cultural heritage sites, monuments, museums, commercial centers, restaurants, parks and recreational areas, etc.); b. Develop a passenger demand model and conduct surveys to estimate tourist and passenger demand figures; c. Develop the demand model for daily, seasonal, and annual passenger numbers, including segmentation by national and foreign tourists and potential local commuters; d. Provide an estimate of the level of certainty in the demand figures.

D. Operational characteristics:

a. Determine the types of touristic river services that could be offered (e.g. hop-on hop- off sightseeing, lunch cruises, dinner cruises, private parties and corporate events, etc.); b. Determine the route network and stopping locations for the river services; c. Determine the service characteristics for the river services (such as the hop-on and hop-off tourist services) in terms of service frequency and required vessel capacity; d. Propose a fare policy and fare structure, including estimation of the fare level for single-trip or daily tourist services and weekly and/or monthly passes for possible commuter trips; e. Determine the types of recreational services that could be offered on the river, such as rental and coaching for kayaks, canoes, and rowing.

E. Stakeholder consultation

a. Carry out consultations with local fishermen and other relevant stakeholders b. Hold a public workshop between the consultant team and the stakeholder community.

F. Conceptual Infrastructure and Equipment Analysis

23. Identification of the infrastructure and equipment components:

a. Based on the proposed operational routes and characteristics, determine the associated infrastructure components, including passenger access points and pedestrian facilities, bicycle parking, piers and quays, boat launches, commercial kiosks and shops, catering facilities, public space, etc. Appendix 1 109

b. Identify the vessel fleet requirements for the proposed services.

G. Siting of infrastructure components

a. Analyze the potential integration points with existing public transport services, including the Tbilisi Metro, bus services, and Marshrutka services; b. Analyze the accessibility of quays (interaction with pedestrian, transport systems and tourist attractions); identify existing problems and offer means of their solution, such as adding new pedestrian crossing points; c. Map the project’s proposed universally accessible walking routes between the river services and the other public transport services; d. Select the locations for potential quays, based on analysis of river-bed properties, accessibility of quays and possibility of their integration with touristic itineraries; e. Determine the number and size of vessels that could be accommodated at each quay site; and f. Based on the results of the hydrological and engineering surveys, determine the impact of the proposed service routes and the deadweights of proposed vessels on the existing infrastructure (bridges).

H. Infrastructure costing

a. Provide initial bill of quantities for each infrastructure component; b. Provide an initial estimation of the investment costs for each infrastructure component.

I. Vessel technology analysis and costing

a. Perform a market survey of the vessel technologies available with particular attention on clean-technology options, including electric-propulsion vessels b. Provide an initial estimation of the investment costs for the required vessel fleet.

J. Recreational equipment and costing

a. Perform a market survey of the equipment requirements for the recreational services, including kayaks, canoes, and rowing boats and other related equipment, such as oars and life jackets; b. Provide an initial estimation of the investment costs of the equipment for the recreational services.

K. Conceptual Institutional and Business Plans

24. Conceptual institutional plan

a. Identify the relevant agencies and institutions with responsibility for river transport services and river recreational services; b. Provide an analysis of the technical and managerial capacity of the relevant institutions; c. Outline the types of staff and skills that the management entity institution will be required to hold; d. Identify the potential capacity-building support that could be delivered to the 110 Appendix 1

institutions in the future.

25. Conceptual business plan:

a. Identify the type and number of private sector contracts required for the implementation, operation, and maintenance of the proposed services; b. Outline the potential contractual structure between the management entity institution and the potential private sector contractors.

L. Economic Analysis and Financial Due Diligence

26. Investment costs: Estimate the infrastructure and equipment investments required for the river services and indicate which infrastructure and equipment investments can be carried by the private sector and which require public investment.

27. Operational costs and revenues:

a. Using the estimates for the daily ridership and service levels, determine the operational costs (fuel/energy, labor, maintenance, spare parts, administration, media costs, etc.) and the system revenues (fares, advertising, commercial and retail, etc.); b. Provide the financial analysis over a ten-year operational period; c. Provide the documentation for the basis and/or assumptions involved in determining the costs and revenues.

28. Economic analysis and financial due diligence.

a. Estimation of the number of persons that will be directly and indirectly employed in the system; b. Determination of the types of economic benefits generated by the project; c. Using the methodology prescribed by the Asian Development Bank (ADB), calculate the Economic Internal Rate of Return (EIRR) for the project; d. Calculate the Net Present Value (NPV) for the project; e. Calculate the Financial Internal Rate of Return (FIRR) for the project.

PART II DETAILED ENGINEERING

29. The Detailed Engineering Design shall commence on approval of Draft Feasibility Report and include: (a) Preparation of detailed engineering report, (b) a procurement plan for works and goods packages and a TOR for supervision consultants and (iii) associated invitation of bids (IFB). Submissions should include updated Social and Environmental Safeguards report based on the final design with costs of ensuring safeguards compliance and their reporting, and the economic and financial due diligence reports.

a. The detailed designs reflect Geomorphological and other conditions affecting development works and detailing of the works required to enable navigability and, location of terminals and associated facilities; b. The detailed designs reflect Topographical/Hydrographical survey 43 and Geo-

43 The hydrographical survey data collection will include identification and detailing of all such features which may affect

Appendix 1 111

technical/Geological investigation at/between proposed ferry locations and Analyze the data for the purpose of design of proposed structures as per standard/prevailing guidelines. Define what may or may not work when designing navigation improvements and evaluation of dredging requirement (if any). It shall include a determination of those reaches that are stable in depth and width and thus provide the basis for all subsequent works to be taken up. Present designs and associated costs; c. Based on hydrological and morphological modelling define potential downstream effects of terminal construction, in particular with respect to erosion and accretion patterns for any “fixed” infrastructure proposed to be constructed at any of the terminal locations, if applicable (such as spurs, breakwaters, revetments, embankments etc.) and estimate associated development/ mitigation costs; d. Detailed layout plan to include facilities for both conventional and state of the art model including provisions for berthing, boarding & de-boarding of passengers/loading & unloading of cargo, bank protection, navigation aids, terminal complex with required facilities i.e. waiting area, shop, food court, washroom, ticket counter, approach road to terminal connecting nearby main road, water supply, electricity supply, firefighting including lighting, requirement of power, water supply, emergency and standby power supply, provision of solar power, communication system, Drainage & Sewerage system, boundary wall, fencing, nearby area development, land development plan, cargo handling equipment if required; e. Provide Front end Engineering and design, drawings, technical specifications, bill of quantities (BOQ) and cost estimates for all structures (including ancillary works, road connectivity etc.) involved in development of the proposed locations for executing the work. TCH/TDF should be consulted adequately during the process of designing of the structures and the designs & drawings are to be vetted by the Technical Committee of TDF (to be defined by TDF) prior to finalization; f. Site selection of the proposed locations along with all details for land/asset acquisition and livelihood impacts, including ownership and estimated cost of land. This will include all details and permissions to be obtained with adequate background papers indicating Government and private/communal land. This will also include land for Main Structures & Ancillary works as well as for access to the facility; g. Costs of land acquisition and R&R; h. Detailed Environmental mitigation and management costs; i. Functional/ technical specifications of the vessel and costs of procurement and O&M; and j. Implementation schedule, arrangements and updated business plan for the facility

30. Every cost estimate made shall be duly supported by the justifications for the rates adopted/basis of rates GoG schedule of rates/market rates/ lowest budgetary offers received etc.

IV. REPORT CONTENT AND RECOMMENDATIONS

31. The Final Report shall comprise of each of the feasibility study sections identified in this ToR along with a detailed set of recommendations. Detailed descriptions, findings, and data from the survey work shall be included as appendices to the report. The report sections shall thus

river navigation including but not limited to survey and data collection / data acquisition of tidal , topographic, bathymetric, flow and discharge conditions, water level variations, soil (suspended sediment, bed and bank) conditions, geological, geomorphologic and all other conditions. The consultant shall also consider data collection for variation in sediment transport (size and quantity) sources of sediments, locate degrading, aggrading, and stable reaches and correlate these results with historical data and / or previous study reports to qualitatively analyze the effects of anticipated project features 112 Appendix 1 cover:

a. Introduction and project overview b. Summary of survey results (including an overview of methodologies) c. Operational analysis d. Conceptual infrastructure and equipment analysis e. Conceptual institutional and business plans f. Economic analysis and financial due diligence g. Appendices (detailed description, findings, and data from the survey work).

32. Additional requirements: The Consultant is obliged to search for the information within the surveys to be carried out and cooperate with the owners of “Ortachala HPP” and “Zahes”, businesses with current structures located over portions of the Mtkvari River.

33. Prior to submission of Final Report to the Employer, it shall be agreed (as per the competence) with the following and respective services of Tbilisi Municipality City Hall:

a. Department for Architecture of Tbilisi City Municipality LEPL; b. Municipal Department for Urban Development; c. Municipal Department for Economic Development; d. Municipal Department for Transport; e. Municipal Department for Infrastructure Development; f. Municipal Department for Culture, Education, Sports and Affairs of the Youth.

34. Administration and Study Management: MDF established by the Government under the Ministry of Regional Development and Infrastructures (MRDI) will act as the Client on behalf of the Government and as the Implementing Agency who will perform day-to-day administration of the Project.

A. Detailed Engineering

35. The detailed engineering design will provide the designs of all works and facilities to be taken up under the project supported by the reports of surveys, investigations and modelling carried out, detailed designs and estimates with plans and construction drawings. Additional outputs would include (a) the report on functional and technical specifications for the vessel, procurement method (TCH operated or lease), procurement plan and the IFB;(b) Safeguard reports and implementation costs; (c) Terminal and facility management arrangements and costs; (d) updated business plan for the facility; (e) updated economic and financial analysis of the proposed facility, and (f) procurement plan and IFB for all the works components under the proposed project. The responsibility for technical direction of the Consultant will rest with Tbilisi City Government. The Tbilisi City Hall will designate a study manager/coordinator to provide technical guidance to the Consultant. In addition, the Tbilisi City Government and the Client will review the Consultant’s findings and provide guidance on final recommendations at key points throughout the study. The Consultant will have to submit draft reports to the Client, Tbilisi City Hall and TTC for approval and if necessary, make any relevant alterations and amendments to the reports. A copy of the reports will also be provided to the Asian Development Bank (ADB). While carrying out the surveys and inspections it is suggested that representatives of the Client, Tbilisi City Hall and TTC be also consulted and the results of the investigations discussed with them.

Appendix 1 113

V. ADMINISTRATION AND STUDY MANAGEMENT:

36. TDF a unit of TCH will have overall responsibility and coordination will be by MDF established by the Government under the Ministry of Regional Development and Infrastructures (MRDI) will act as the Client on behalf of the Government and as the Implementing Agency who will perform day-to-day administration of the Project.

37. The responsibility for technical direction of the Consultant will rest with Tbilisi City Government. The Tbilisi City Hall will designate a study manager/coordinator to provide technical guidance to the Consultant. In addition, the Tbilisi City Government and the Client will review the Consultant’s findings and provide guidance on final recommendations at key points throughout the study. The Consultant will have to submit draft reports to the Client, Tbilisi City Hall and TTC for approval and if necessary, make any relevant alterations and amendments to the reports. A copy of the reports will also be provided to the Asian Development Bank (ADB). While carrying out the surveys and inspections it is suggested that representatives of the Client, Tbilisi City Hall and TTC be also consulted and the results of the investigations discussed with them.

VI. REPORTING REQUIREMENTS AND DURATION OF THE ASSIGNMENT

38. Format of reporting: The Consultant will prepare the following reports in English and Georgian language and distribute them (4 copies in English and 4 in Georgian). The format and content of each report is to be agreed with the Client and City Hall. For each report submitted an electronic copy will be provided. Electronic copies will be in the format used in their preparation with all links, formulas, and fields active. For all reports an executive summary will be included. The financial calculations represented with the study shall be prepared in Microsoft Excel format, while the maps to be submitted shall be prepared in the format compatible with the GIS.

39. All reports should be prepared in Microsoft Word and Excel, and presented to the Client and City Hall as bound documents according to agreed quantities, in both hard copies and electronic files. Drawings will also be provided in hard copies and electronic forms (AutoCAD or compatible software). Reports should have the attachments such as video and photo materials about the activity progress. the Consultant will provide the Client a proper license to guarantee full access to the data, drawings, plans sketch and any other digital outputs.

A. Feasibility:

40. The Consultant will prepare the Inception Report - within 1 month from commencement of services. The report will include a review of the proposed approach and methodology of each major task, detailed workflow, staffing schedule, and schedule of deliverables. The Inception Report shall include at least the following:

41. Methodology statement defining the proposed limits of the study, including:

a. a clear definition of the area to be subjected to the designs; b. an accurate estimation of the time they will take to complete; c. methods and parameters; d. any changes to the composition of the Consultant’s team and specialists needed; e. agencies and government departments which would need to be involved; and f. methods of consultation with the local authorities and population. 42. Detailed Program of Work, including field surveys, showing time, duration and personnel 114 Appendix 1 as well as the inter-relationship between activities.

43. A draft Interim Report to shall be submitted within 3 months after commencement of services. The report will present the proposed alternatives, the multi-criteria analyses of selected alternatives and a draft conceptual plan of the chosen alternative.

44. A draft Final Report to be submitted within 5 month after commencement of services. This report will include the complete package of the Feasibility Study including results of all above listed tasks and terms of reference for detailed engineering design. The report will include proposed measures to develop a navigational route from “Ortatchala HPP” to “Zahesi” on the river “Mtkvari”, conceptual drawings, cost analyses, the multi-criteria framework and final scoring of proposed navigational route, full conceptual plan, and results from the stakeholder engagement.

45. A Final Report to be submitted within 2 weeks after receiving the comments on the draft final report by the Client and City Hall (it is expected that the comments on draft Final Report will be provided within 10 days).

46. The overall period of the assignment will be 6 months from the commencement of services, which will be calculated from the date of issuing the Notice to Proceed.

A. Detailed Engineering:

Activities Time period from approval of Draft Feasibility Report Inception Report 1 Updated Surveys and investigation Reports 2 Conceptual designs of route/ alignment and associated 3 alignment related works (dredging/improvements/ bank stabilization), terminals and associated facilities Draft Design Report and IFB for all Works/Plant and goods 4 (Vessels) Final Detailed Project Report 5

VII. FACILITIES AND EQUIPMENT

47. Resources provided by the Consultant:

a. Office space and transport. The consultants will provide for themselves accommodation and office space, as well as means of transportation; b. Computers and software. The consultants will provide computers and software for their own use; c. Printers and paper for report production. The consultant will provide suitable equipment and paper for all report production required under the project will print all required documentation; d. Translators/interpreters. The consultant will provide all interpreters and/or translators that might be required to undertake the assignment. e. Maps and photos. The Consultant shall obtain all maps and air photos required for this assignment. These basic materials can be obtained from the relevant state and municipal agencies and specialized private companies (or through them).

Appendix 1 115

48. Resources provided by the City Hall: The City Hall will provide the Consultant with all readily available material, data, surveys, reports and relevant studies. The Consultant will be responsible for ensuring the adequacy, correctness and updating of all data and materials provided.

VIII. EXPERIENCE AND QUALIFICATION REQUIRED OF THE FIRM AND TEAM COMPOSITION

49. The Consultant preferably shall have at least 10 years of extensive international experience in hydraulic engineering, environmental consultancy, public transport services, urban and transport system design, urban traffic management, economic analysis and financial due diligence, social issues assessment and estimation, interface management, quality control, contract management and dispute resolution of similar size international contracts. The Consultant shall have a strong and experienced team of professionals, who will provide services on- site in Georgia. All experts preferably will have, at least, a bachelor's degrees from an accredited university. The curriculum vitae of experts are recommended to contain information on reference projects they have successfully completed in the last 5 years, with complete names and contacts of the clients. Experience in Georgia, in Caucasus, or in East European or Central Asian countries will be an asset. Cost estimators, interpreters (with good knowledge of technical terms) and other support staff, as necessary, will also support the key staff.

50. The team mobilized by the Consultant should be composed of, but not limited to, the following experts:

Consultants Qualifications Person month 1a International Team Members 54 Person Months 1 River Rehabilitation River Rehabilitation Specialist / Team Leader (8 person-month) will 8 Specialist/ Deputy possess a Master’s degree in hydraulic engineering, environmental Team Leader engineering, ecology, hydrology or a related field. The Team Leader will also possess at least 15 years of experience with sustainable urban transport projects and especially experience in the preparation of design options and feasibility studies in hydraulic engineering, river hydrology, nature-based solutions, flood protection works, river landscaping, integrated climate adaptation and river ecosystems. At least 10 years of work experience in a supervising role and in project management in a consultancy; ability to delegate work; writing and speaking proficiency in English language 2 Senior Hydrologist The specialist should have a postgraduate degree in hydrology, water 2 resources management, urban drainage and flood control or closely related discipline; with at least 10 years of experience in research and professional practice in the areas of climate change impacts on water resources and waterways, hydrologic modeling and/or water resources management; with specific experience in hydrologic systems and storm regime modeling in an urban setting. Working in close collaboration with the team leader/climate change specialist, the hydrologist will have primary responsibility for interpreting climate change projections and scenarios in terms of changes in hydrology and hydraulics within the project relevant catchment areas, emphasizing changes in flood frequency and intensity and alterations to regional water resources. 3 Geotechnical Graduate in Civil Engineering - Geotechnical Engineering around 2 Engineer 15 years’ experience in surveys and investigations 116 Appendix 1

Consultants Qualifications Person month 4 Architect Degree in Architecture with around 15 years’ experience. Experience of 2 implementation of similar size and type projects is a must especially of terminals and associated facilities 5 Structural Engineer Civil Engineering with specialization in structural Engineering with 3 experience in designing of river front development structures, as well as specialized Buildings- terminals and facilities 6 Quantity Surveyor Bachelors in Civil Engineering with around 10 years’ experience in cost 2 estimation and related activities. 7 Procurement Bachelors in Engineering with around 10 years of experience in 2 Specialist procurement planning and procurement support for infrastructure projects in the region. Conversant with procurement regulations of the ADB, The World Bank and FIDIC 8 Environmental The Environmental specialist will possess a university degree in 2 Safeguards Environmental planning, management, with at least 10 years of Specialist experience with sustainable urban transport projects. Experience in preparing environmental assessment reports and transport equity analyses is highly preferred. 9 Social Safeguard The Social specialist will possess a university degree in Planning, Social 2 Specialist Sciences, MBA at least 10 years of experience with sustainable urban transport projects. Experience in preparing social l assessment reports and transport equity analyses is highly preferred. 10 Senior Urban The Urban Transport Planner will possess a university degree in 3 Transport Planner transport planning, transport engineering, urban planning, civil engineering or related field. The transport specialist will also possess at least 10 years relevant job experience in sustainable urban transport projects, transport planning, mass transit. Experience in preparing comprehensive mobility plans and integrating public transport with traditional modelling inputs is advantageous. 11 Financial Modeler will possess a university degree in Finances with at least 5 years of 2 experience in regard to elaboration of different financial models for feasibility studies. 12 River Boat This specialist will possess a university degree in transport planning, 3 Technology transport engineering, civil engineering or related field. The river boat Specialist technology specialist will also possess at least 5 years of experience with urban transport projects. 13 Passenger Demand will possess a university degree in transport planning, transport 2 Modeler engineering, civil engineering or related field. The Demand modelling specialist should also possess at least 5 years’ experience in elaboration of transport demand models for feasibility studies 14 Institutional and will possess a university degree in business, engineering, urban 2 Business Plan planning, policy, public administration or similar. 10 years relevant job Specialist experience in sustainable urban transport planning as well as strategy development, policy advisory, master planning or similar. Sub Total 37 1b National Team Members –69 person-months 1 River Rehabilitation River Rehabilitation Specialist / Deputy Team Leader (8 person-month) 8 Specialist (Deputy will possess a Master’s degree in hydraulic engineering, environmental Team Leader) engineering, ecology, hydrology or a related field. The Team Leader will also possess at least 10 years of experience with sustainable urban transport projects and especially experience in the preparation of design options and feasibility studies in hydraulic engineering, river hydrology, nature-based solutions, flood protection works, river landscaping, Appendix 1 117

Consultants Qualifications Person month integrated climate adaptation and river ecosystems. At least 10 years of work experience in a supervising role and in project management; writing and speaking proficiency in English language 2 Hydrologist The specialist should have a postgraduate degree in hydrology, water 5 resources management, urban drainage and flood control or closely related discipline; with at least 8 years of experience in research and professional practice in the areas of climate change impacts on water resources and waterways, hydrologic modeling and/or water resources management; with specific experience in hydrologic systems and storm regime modeling in an urban setting. Working in close collaboration with the team leader/climate change specialist, the hydrologist will have primary responsibility for interpreting climate change projections and scenarios in terms of changes in hydrology and hydraulics within the project relevant catchment areas, emphasizing changes in flood frequency and intensity and alterations to regional water resources. 3 Structural Engineer Civil Engineering with specialization in structural Engineering with 4 experience in designing of river front development structures, as well as specialized buildings- terminals and associated facilities 4 Architect Degree in Architecture with around 15 years’ experience. Experience of 4 implementation of similar size and type projects is a must especially of terminals and associated facilities 5 Quantity Surveyor Bachelors in Civil Engineering with around 10 years’ experience in cost 4 estimation and related activities. 6 Economic Analyst will possess a university degree in Economics/Finances, or a related 3 field. Economic Analyst will also possess at least 5 years relevant job experience in project evaluation, transport planning and transport policies. 7 Data Collection will possess a university degree in Economics/Finances or related field. 3 Expert Data Collection Specialist will also possess at least 5 years of experience in regard of collecting of Hydrological data for Feasibility Studies. 8 Hydraulic Engineer will possess a university degree in hydraulic engineering, or a related 4 field. Hydraulic Engineer will also possess at least 5 years of experience in hydraulic engineering, river hydrology and river ecosystems. 9 Procurement Bachelors in Engineering with around 10 years of experience in 6 Specialist procurement planning and procurement support for infrastructure projects in the region. Conversant with procurement regulations of the ADB, The World Bank and FIDIC 10 Social Safeguards will possess a university degree in Planning, Management, Social 3 Specialist Science, or a related filed with at least 5 years of experience with social issues and R&R. 11 Environmental will possess a university degree in Environmental Science, Biology or a 3 Safeguard related filed with at least 5 years of experience with river ecosystem Specialist related projects. 12 CAD Draughtsman, 15 Junior Design Engineers Subtotal 1.b 62 Total 99

118 Appendix 1

51. Payment Milestones for Feasibility Study

a. 20 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Inception Report prepared by the Consultant Company - within 1 months from commencement of services, acceptable to the Client; b. 20 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Draft Interim Report prepared by the Consultant Company - within 3 months from commencement of services, acceptable to the Client; c. 20 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Draft Final Report prepared by the Consultant Company - within 5 months from commencement of services, acceptable to the Client; d. 40 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Final Report prepared by the Consultant Company - to be submitted within 2 weeks after receiving the comments on the draft final report by the Client and City Hall, acceptable to the Client.

52. Detailed Engineering Design

a. 20 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Inception Report b. 15 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Updated Surveys and investigation Reports c. 30 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Conceptual designs of route/ alignment and associated alignment related works (dredging/improvements/ bank stabilization), terminals and associated facilities d. 25 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Draft Design Report and IFB for all Works/Plant and goods (Vessels) e. 20 percent of the total Contract price of the lump sum amount shall be paid upon submission of the Final Detailed Project Report