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40080-025: Ha Noi Metro Rail System Project

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40080-025: Ha Noi Metro Rail System Project Additional Financing of Ha Noi Metro Rail System Project (Line 3: Nhon–Ha Noi Station Section) (RRP VIE 40080) Project Administration Manual Project Number: 40080-025 Loan Number: October 2015 Socialist Republic of Viet Nam: Hanoi Metro Rail System Project (Line 3: Nhon – Ha Noi Station Section) Additional Financing ii Contents I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 3 A. Project Readiness Activities 3 B. Overall Project Implementation Plan 4 III. PROJECT MANAGEMENT ARRANGEMENTS 7 A. Project Implementation Organizations – Roles and Responsibilities 7 B. Key Persons Involved in Implementation 9 C. Project Organization Structure 10 IV. COSTS AND FINANCING 12 A. Detailed Cost Estimates by Expenditure Category (in $ million) 14 B. Allocation and Withdrawal of Loan Proceeds 15 C. Detailed Cost Estimates by Financier 17 D. Detailed Cost Estimates by Outputs 20 E. Detailed Cost Estimates by Year 23 F. Contract and Disbursement S-curve for ADB Financing and ADB-administered Loan 32 G. Fund Flow Diagrams 34 V. FINANCIAL MANAGEMENT 35 A. Financial Management Assessment 35 B. Disbursement 36 C. Accounting 38 D. Auditing 38 VI. PROCUREMENT AND CONSULTING SERVICES 39 A. Advance Contracting 39 B. Procurement of Goods, Works and Consulting Services 39 C. Procurement Plan 39 D. Methods, Thresholds, Review and 18-Month Procurement Plan 40 E. Indicative List of Packages Required Under the Project 41 F. List of Awarded and On-going Contracts 41 G. Completed Contracts 42 H. Non-ADB Financing 42 I. National Competitive Bidding 43 VII. SAFEGUARDS 46 A. Involuntary Resettlement 46 B. Environment 46 C. Poverty/Social/Gender 47 D. Execution of Civil Works Contracts 47 VIII. GENDER AND SOCIAL DIMENSIONS 49 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 56 A. Revised Project Design and Monitoring Framework 56 B. Monitoring 59 C. Safeguards monitoring 59 D. Evaluation 60 E. Reporting 61 F. Stakeholder Communication Strategy 61 iii X. ANTICORRUPTION POLICY 70 XI. ACCOUNTABILITY MECHANISM 70 XII. RECORD OF PAM CHANGES 70 ANNEX 1: TERMS OF REFERENCE FOR PMS-PHASE 2 iv Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with government of Viet Nam (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 Ha Noi People’s Committee (HPC) and Ha Noi Metropolitan Railway Management Board (MRB) are wholly responsible for the implementation of ADB financed 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 HPC and MRB of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. 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. 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 ADB Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM. v Abbreviations ADB = Asian Development Bank ADF = Asian Development Fund AFD = Agence Française de Développement AFS = Audited financial statements AP = Affected Persons CIF = Climate Investment Fund CQS = consultant qualification selection CTF = Clean Technology Fund DGT = Direction Générale du Trésor DMF = design and monitoring framework DSC = design and supervision consultant EIA = environmental impact assessment EIB = European Investment Bank EMP = environmental management plan ESMS = environmental and social management system FDIC = International Federation of Consulting Engineers GDP = gross domestic product HPC = Ha Noi People’s Committee ICB = international competitive bidding IEE = Initial environmental examination LAR = land acquisition and resettlement LIBOR = London interbank offered rate MOF = Ministry of Finance MPII = Ministry of Planning and Investment MRB = Hanoi Metropolitan Railway Management Board NCB = national competitive bidding NGOs = nongovernment organizations PAI = project administration instructions PAM = project administration manual PID = project implementation division PMU = project management unit QBS = quality based selection QCBS = quality- and cost based selection RRP = report and recommendation of the President to the Board SBD = standard bidding documents SBV = State Bank of Vietnam SGIA = second generation imprest accounts SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy TOR = terms of reference NOTES In this report, "$" refers to US dollars. I. PROJECT DESCRIPTION 1. The Ha Noi Metro Rail System Project (Line 3: Nhon–Ha Noi station section) is to develop: (i) a 12.5 kilometer (km) long dual track rail line from Nhon to Ha Noi main railway station1; and (ii) electrical and mechanical (E&M) systems, including all railway systems required to operate a modern metro line. In addition, support will be provided for detailed design, procurement, construction supervision, design verification, project management and capacity development. 2. The Metro Line 3 is one of four priority rail lines under the Ha Noi Urban Transport Master Plan (HUTMP) until 2020 in accordance with Prime Minister’s Decision No.90/2008/QD- DTG of 9 July 2008. Metro Line 3 will facilitate public transport connectivity, enhance access in six Ha Noi districts and form an integral part of an improved public transport system that aims to increase the modal share of public transport to 40% of demand, through low-carbon transport that reduces greenhouse gas emissions. The executing agency (EA) is the Ha Noi People’s Committee (HPC) and the implementing agency (IA) is the Ha Noi Metropolitan Railway Management Board (MRB). 3. The impact of the project will be the establishment of an integrated sustainable public transport system in six districts of Ha Noi.2 The outcome will be competitive metro rail services along the project corridor. The project outputs will be: (i) Metro Line 3 is operational; and (ii) improved implementation capacity of MRB.3 (i) Component 1 - Metro Line 3 System Development: including all Works and E&M systems for Metro line 3, from Nhon depot in the west to Ga Ha Noi measuring (a) approximately 12.5 km in length, of which about 3.5 km is underground, about 8.5 km will be elevated and about 500 meters will be in transition ramp; and (b) depot and ancillary buildings, elevated viaducts, transition tunnel portal, bored tunnels, and 12 stations. The Works portion of this component includes all civil, structural, building services, architectural/builders work and all necessary utility services to the works. The E&M system portion of this component includes all railway systems including track work, rolling stock, traction power, signaling and telecommunications, E&M systems and facilities, and ticketing system and ancillary services and facilities required to operate a modern Metro line. (ii) Component 2 – Implementation Support: supporting to MRB to improve metro development, implementation and operations capacity by providing skills in specific technical disciplines and knowledge transfer of these skills to MRB staff through on-the-job training and workshops, and addressing organizational, functional, and technical capacity shortfalls. 4. Asian Development Bank (ADB) provided technical assistance for initial feasibility study of the project.4 The original ADB loan of $293 million from ordinary capital resources (OCR) 1 The rail system included 3.5 km underground, 8.5 km elevated, and 500 m in a transition ramp, including a depot with ancillary buildings at Nhon, elevated viaducts, transition tunnel portal, bored tunnels, and 12 stations. 2 Number of districts increased from five to six as Tu Liem was split into Tu Liem North and Tu Liem South in 2012. 3 At time of loan approval in 2011, MRB was named Ha Noi Metropolitan Rail Transport Project Board. 4 ADB. 2006. Technical Assistance to the Socialist Republic of Viet Nam for Preparing the Ha Noi Metro Rail System Project. Manila (TA 4900-VIE). The feasibility study was subsequently updated and completed by DGT-funded consultants. 2 financing for the project was approved on 29 March 2011, and made effective on 13 March 2012. With cofinancing from Agence Française de Développement (AFD) for €110 million, Direction Générale du Trésor (DGT) for €250 million and European Investment Bank (EIB) for €73 million, nine civil work and equipment contracts and four consulting services contracts have been financed. ADB finances one civil works contract for the tunnel section and four underground stations.5 5. Project Progress. The project faced start-up delays due to slow progress in land acquisition and resettlement (LAR), and delays in design and procurement. To date, four out of total nine contract packages
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