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Khyber Pakhtunkhwa Cities Improvement Projects (PRF PAK 51036-003)

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Khyber Pakhtunkhwa Cities Improvement Projects (PRF PAK 51036-003) Khyber Pakhtunkhwa Cities Improvement Projects (PRF PAK 51036-003) Project Readiness Financing Project Administration Manual Project Number: 51036-003 Loan and/or Grant Number(s): {PRFXXXX} March 2019 Islamic Republic of Pakistan: Project Readiness Financing for Khyber Pakhtunkhwa Cities Improvement Projects CONTENTS IMPLEMENTATION PLANS 1 A. Overall PRF Project Implementation Plan 1 PROJECT MANAGEMENT ARRANGEMENTS 4 A. Project Implementation Organizations – Roles and Responsibilities 4 B. Key Persons Involved in Implementation 6 C. PRF Project Organization Structure 7 COSTS AND FINANCING 9 A. Key Assumptions 9 B. Allocation and Withdrawal of Loan and Grant Proceeds 9 C. Detailed Cost Estimates by Expenditure Category 10 D. Detailed Cost Estimates by Financier 11 E. Detailed Cost Estimates by Outputs and/or Components 12 F. Contract and Disbursement S-Curve 13 FINANCIAL MANAGEMENT 14 A. Financial Management Assessment 14 B. Disbursement 14 C. Accounting 17 D. Auditing and Public Disclosure 17 PROCUREMENT AND CONSULTING SERVICES 19 A. Advance Contracting, as applicable 19 B. Procurement of Consulting Services 19 C. Procurement Plan 20 D. Methods, Thresholds, Review and 60-Month Procurement Plan 20 E. List of Active Procurement Packages (Contracts) 20 F. List of Indicative Packages (Contracts) Required under the Project 21 G. List of Awarded and Completed Contracts 22 H. Non-ADB Financing 22 I. Consultant's Terms of Reference 23 SAFEGUARDS 23 PERFORMANCE MONITORING 23 A. Monitoring 23 B. Reporting 24 IX. ANTICORRUPTION POLICY 24 X. ACCOUNTABILITY MECHANISM 25 XI. CLIMATE CHANGE MITIGATION AND ADAPTATION 25 XII. RECORD OF PAM CHANGES 25 Appendix 1: Detailed Terms of Reference Project Administration Manual for Project Readiness Financing: Purpose and Process The project administration manual (PAM) for Project Readiness Financing (PRF) is an abridged version of ADB’s regular PAM and describes the essential administrative and management requirements to implement the PRF in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Planning and Development Department (P&DD), Water and Sanitation Services Companies (WSSCs), and City Governments of Abbottabad, Kohat, Mardan, and Peshawar, under the provincial Government of Khyber Pakhtunkhwa are wholly responsible for the implementation of ADB-financed PRF projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by P&DD and WSSCs and the City Governments of Abbottabad, Kohat, Mardan, and Peshawar, under the provincial Government of Khyber Pakhtunkhwa, of their obligations and responsibilities for PRF project implementation in accordance with ADB’s policies and procedures. In the event of any discrepancy or contradiction between the PAM and the Loan and Grant Agreement, the provisions of the PRF Loan and Grant Agreement shall 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 CGs = city governments CIU = city implementation unit COBP = country operations and business plan EAD = Economic Affairs Division EDCM = Engineering design and construction management FMA = financial management assessment GoKP = Government of Khyber Pakhtunkhwa GoP = Government of Pakistan IRCB = institutional review and capacity building KP = Khyber Pakhtunkhwa KPICP = Khyber Pakhtunkhwa Cities Improvement Project P&DD = Planning and Development Department PAM = project administration manual PMU = project management unit PRF = project readiness financing QCBS = quality- and cost-based selection SBD = standard bidding documents SPRSS = summary poverty reduction and social strategy SWM = solid waste management SWOT = strengths, weaknesses, opportunities and threats TOR = terms of reference W&S = water and sanitation WSSC = water and sanitation services company IMPLEMENTATION PLANS A. Overall PRF Project Implementation Plan 1. Table 1 presents the overall implementation plan for the PRF project and records key implementation, including project management activities (on quarterly basis) will be updated annually and submitted to ADB with updated contract and disbursement projections. PRF PRF Advance PRF Year 2 PRF Year 3 PRF Year 4 PRF Year 5 Year 1 Year 6 Activities Actions (2019) (2020) (2021) (2022) (2018) (2023) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 A. Implementation Consultants selection under PRF Package 1 - EDCM Advertisement Selection Contract Award Engineering design Output 1: Topographical, hydrological and other engineering surveys Output 2: Detailed design of the municipal infrastructures, public urban spaces and transport facilities Output 3: Bidding Documents Output 4: Contractors Selection Construction management Package 2 - IRCB Advertisement Selection Contract Award Output 1: WSSC Operations Business Plan Output 2: Project Management 2 PRF PRF Advance PRF Year 2 PRF Year 3 PRF Year 4 PRF Year 5 Year 1 Year 6 Actions (2019) (2020) (2021) (2022) Activities (2018) (2023) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Output 3: Procurement Support Output 4: Institutional development and capacity building Output 5: Project Communication Plan Output 6: Community Awareness and Participation Program Package 3 - Due Diligence and Climate Change Resilience Advertisement Selection Contract Award Due diligence and climate change resilience activities B. Management Activities Capacity building of urban services institutions Establish PMU/CIUs PRF negotiations ADB Board approval PRF Signing Declaration of PRF effectiveness Issue legal opinion PRF effectiveness Develop PPMS Provide various training including external training Submission of quarterly progress reports Submission of annual progress reports Submission of APFS 3 PRF PRF Advance PRF Year 2 PRF Year 3 PRF Year 4 PRF Year 5 Year 1 Year 6 Actions (2019) (2020) (2021) (2022) Activities (2018) (2023) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Date of ensuing loan (Phase 1) approval APFS=audited project financial statement; CIU=city implementation unit; EDCM=engineering design and construction management; IRCB=institutional review and capacity building; PMU=project management unit; PPMS=project performance monitoring system; PRF=project readiness financing; Q=quarter; WSSC=water and sanitation services company. 4 4 PROJECT MANAGEMENT ARRANGEMENTS A. Project Implementation Organizations – Roles and Responsibilities Table 2: Roles and Responsibilities of Key Stakeholders PRF Project Implementation Management Roles and Responsibilities Organizations Project Steering Committee − Provide policy direction and strategic oversight for the (PSC) PRF. − Provide advice and make policy level decisions to facilitate timely execution of projects. − Review quarterly and annual performance reports. − Accord principal approval of the investments. − Ensure that the project is implemented in line with loan/project agreements. − Ensure provision of counterpart funding/budget approval for counterpart funding. − Approve annual operational and business plans of the utility companies and their annual operational allocation. − Approve monitoring and evaluation reports Executing agency Planning & Development − Appoint a Project Director and establish a project Department (P&DD), GoKP management unit (PMU) adequately staffed (including a qualified accountant) and acceptable to ADB. − Appoint a Project Director and establish a project management unit (PMU) and city implementation unit (CIU), adequately staffed (including a qualified accountant) and acceptable to ADB. − Liaise with ADB to address any issues during design and implementation. − Ensure good coordination with Ministry of Finance and Economic Affairs Division for adequate allocation of annual budget to the project, as per recommendation of PMU and CIU. − Guide institutional review and capacity building consultant. − Provide office space to PMU. − Provide overall guidance to PMU and CIU. − Conduct review and approves detailed engineering designs and estimates. − Approve delegation of authorities to PMU and CIUs. Implementing agencies Project Management Unit − Support the Planning and Development Department. (PMU) in Urban Policy Unit − Negotiate and sign contracts with consultants. − Administer all consulting services contracts. − Manage the day-today project implementation activities. 5 − Act as focal point for communication with ADB on project- related matters. − Lead and supervise the procurement of equipment, goods, and furniture. − Ensure timely submission of withdrawal applications to ADB for direct payment to consultants and contractors. − Ensure financial and safeguards compliance and reporting, in line with loan and grant agreements. − Ensure timely submission of quarterly progress reports to ADB, identifying issues and providing action plans. − Ensure adequate and timely release of counterpart funds to CIUs, consultants and contractors. − Maintain all financial/account records, provide to ADB and Finance Department
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