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Project Readiness Financing: Project Administration Manual

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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. 2 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 3 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. 4 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 5 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
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