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Madhya Pradesh Urban Services Improvement Project

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Madhya Pradesh Urban Services Improvement Project Project Administration Manual Project Number: 42486-016 Loan and/or Grant Number(s): {LXXXX } April 2017 India: Madhya Pradesh Urban Services Improvement Project ABBREVIATIONS ADB : Asian Development Bank CAAA : Controller Aid Accounts & Audit Division of the Ministry of Finance DBO : Design-Build-Operate DDR : Due Diligence Report DMF : Design Monitoring Framework DPR : Detailed Project Report EMP : Environmental Management Plan FY : Financial Year GESI : Gender Equality and Social Inclusion GIS : Geographic Information System GoMP : Government of Madhya Pradesh GRM : Grievance Redressal Mechanism IEE : Initial Environmental Examination MIS : management information system MPUDC : Madhya Pradesh Urban Development Company Limited MPUIF : Madhya Pradesh Urban Infrastructure Fund MPUSIP : Madhya Pradesh Urban Services Improvement Project O&M : operation and maintenance PAM : project administration manual PIU : project implementation unit PMU : project management unit PMC : Project Management Consultants PSS : Project Safeguard Systems SSG : Social Safeguard and Gender TOR : terms of reference UADD : Urban Administration and Development Directorate UDHD : Urban Development and Housing Department ULB : Urban Local Body CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 2 A. Project Readiness Activities 2 B. Overall Project Implementation Plan 5 III. PROJECT MANAGEMENT ARRANGEMENTS 7 A. Project Implementation Organizations: Roles and Responsibilities 7 B. Key Persons Involved in Implementation 8 C. Project Organization Structure is in Figure 1 9 IV. COSTS AND FINANCING 10 A. Cost Estimates Preparation and Revisions 10 B. Key Assumptions 11 C. Detailed Cost Estimates by Expenditure Category 12 D. Allocation and Withdrawal of Loan Proceeds 13 E. Detailed Cost Estimates by Financier 14 F. Detailed Cost Estimates by Outputs 15 G. Detailed Cost Estimates by Year 16 H. Contract Award and Disbursement S-Curve 17 I. Fund Flow Diagram 18 V. FINANCIAL MANAGEMENT 19 A. Financial Management Assessment 19 B. Disbursement 24 C. Accounting 25 D. Auditing and Public Disclosure 25 VI. PROCUREMENT AND CONSULTING SERVICES 26 A. Advance Contracting and Retroactive Financing 26 B. Procurement of Goods, Works, and Consulting Services 27 C. Procurement Plan 27 D. Consultant's Terms of Reference 27 VII. SAFEGUARDS 28 A. Social Safeguards 28 B. Common Grievance Redress Mechanism (GRM) 33 C. Environmental Safeguards 36 VIII. GENDER AND SOCIAL DIMENSIONS 41 A. Gender and Social Inclusion Strategy 41 B. Institutional Strengthening 41 C. Gender Sensitive Behavior Change Communication 42 D. Enhancing livelihood opportunities and skills 42 E. Project management 42 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 43 A. Project Design and Monitoring Framework 43 B. Monitoring 43 C. Evaluation 43 D. Reporting 44 E. Consultation and Participation Strategy and Plan 44 X. ANTICORRUPTION POLICY 45 XI. ACCOUNTABILITY MECHANISM 46 XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 46 Appendixes 1. Subproject Selection Criteria 2. List of Project Towns and Components 3. Planned Capacity Building Programs and Workshops under Output 3 4. Procurement Plan 5. Terms of Reference of the Project Management Consultancy Assignment 6. Gender Equality and Social Inclusion Plan 7. Gender Equality and Social Inclusion Plan Monitoring and Reporting Format 8. Design Monitoring Framework 9. Community Awareness and Participation Plan 10. Outline of Quarterly Progress Report Format 11. Outline of Semi-annual Monitoring Report Template 12. Sample Grievance Registration Form Project Administration Manual Purpose and Process 1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. 2. The Madhya Pradesh Urban Development Company Limited (MPUDC), the Implementing Agency and the Urban Development and Housing Department (UDHD), the Executive Agency, are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by MPUDC and UDHD of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. 3. At loan negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the loan agreement. Such agreement shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the loan agreement shall prevail. 4. After ADB Board approval of the project's report and recommendations of the President (RRP), 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 the PAM. I. PROJECT DESCRIPTION 1. The Madhya Pradesh Urban Services Improvement Project will complement past and ongoing efforts of the Government of Madhya Pradesh (GoMP) to improve water supply and wastewater management for the residents of Madhya Pradesh. The Project will adopt a sector approach and will invest in the water supply system in 64 towns and drainage systems in two towns. Madhya Pradesh’s Urban Development and Housing Department (UDHD) will be the executing agency and Madhya Pradesh Urban Development Company Limited (MPUDC) will be the Implementing Agency for the project. 2. Sixty-four towns with reliable water resource, sound engineering feasibility, available land, and commitment for operation and maintenance (O&M), among others, have been identified to be supported by MPUSIP. Subprojects are selected based on the agreed selection criteria as indicated in Appendix 1. The GoMP plans to approach ADB in future for additional funding for the remaining towns based on lessons learned from implementation of the project. The sector investments will lead to increase in wastewater, which also needs to be addressed. The GoMP is committed to improve wastewater management in a phased manner.1 The project will also support sewage and storm water management in two national heritage tourist towns of Khajuraho and Rajnagar. 3. The impact of the project will be economic growth and urban living conditions improved and infant mortality reduced in Madhya Pradesh.2 The outcome will be improved quality, coverage, efficiency and sustainability of urban service delivery in Madhya Pradesh. 4. The project outputs are as follows: (i) Output 1: Water supply infrastructure in 64 project towns and integrated storm water and sewage infrastructure in two towns improved. This will include (a) construction of water supply facilities, using design-build-operate (DBO) model, in all project towns (the facilities will include raw water intakes, water treatment plants, overhead tanks, distribution networks including the metered household connections); (b) construction of sewage and storm-water management systems in two national heritage tourist towns (Khajuraho and Rajnagar); and (c) the project implementation capacity strengthening. Based on the geographic location and the size, subprojects in project towns have been grouped into 23 procurement packages to achieve the economies of scale for the contract purposes. The surface water is the source in 60 towns while ground water is the source in remaining four towns. In the four towns dependent on ground water, the project will support recharge of ground water and monitor sustainable use of ground water. The list of project towns and components is in Appendix 2. (ii) Output 2: Systems to ensure sustained urban infrastructure operation and management established in all project towns. The project will support the state government and the ULBs, during project implementation period, in establishing and maintaining 10 years performance based O&M water supply contracts. This will include engagement of operators on performance-based, 1 The GoMP is undertaking investments to improve wastewater management in larger towns and towns along rivers using funds from AMRUT program, World Bank, and KfW projects. 2 Government of Madhya Pradesh. 2012. Twelfth Fiver Year Plan: 2012–2017. Bhopal; and Government of Madhya Pradesh. 2013. Madhya Pradesh Vision 2018: An Agenda for Development, Change and Good Governance. Bhopal. 2 long-term O&M contracts and the monitoring and independent review of the services provided by the operators. After the construction (expected to be completed in 2 years), the contractors of the civil works packages will continue to operate and provide continuous water supply service for project towns for a period of 10 years. Out of the 10 years O&M contract period, ADB will finance the first 3 years following the completion of the subproject and GoMP will finance the remaining O&M cost in the subsequent years. The MPUDC will pay the contractors the O&M costs on a monthly basis in both fixed fee and performance- linked variable fees according to the contract agreement. The contractor will ensure proper metering and volumetric billing, adequate water
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