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Second Integrated Road Investment Program

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Second Integrated Road Investment Program Appendix 5 Facility Administration Manual Project Number: 50301-003 MFF Number: 0102 Loan Number: 3579 October 2019 Democratic Socialist Republic of Sri Lanka: Second Integrated Road Investment Program ABBREVIATIONS ADB – Asian Development Bank CRC – conventional road contract DMF – design and monitoring framework EARF – environmental assessment and review framework EMP – environmental management plan ESDD – Environment and Social Development Division EWCD – elderly, women, children, and disabled FIDIC – International Federation of Consulting Engineers GAP – gender action plan ICB – international competitive bidding IEE – initial environmental examination IPP – indigenous peoples plan IPPF – indigenous peoples planning framework iRoad 2 – Second Integrated Road Investment Program MFF – multitranche financing facility MOHRP – Ministry of Highways, Road Development, and Petroleum Resources Development NCB – national competitive bidding PBM – performance-based maintenance PIC – project implementation consultant PIU – project implementation unit PPMS – project performance management system RDA – Road Development Authority RRP – report and recommendation of the President SLRs – Sri Lanka rupees CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 1 A. Project Readiness Activities 1 B. Project Implementation Plan 3 III. PROJECT MANAGEMENT ARRANGEMENTS 4 A. Project Implementation Organizations: Roles and Responsibilities 4 B. Key Persons Involved in Implementation 5 C. Project Organization Structure 6 IV. COSTS AND FINANCING 11 A. Cost Estimates Preparation and Revisions 13 B. Key Assumptions 13 C. Detailed Cost Estimates by Expenditure Category and Financier – Facility 14 D. Allocation and Withdrawal of Loan Proceeds for Tranches 1 and 2 17 E. Detailed Cost Estimates by Year 19 F. Contract and Disbursement S-Curve 20 G. Fund Flow Diagram 23 V. FINANCIAL MANAGEMENT 24 A. Financial Management Assessment 24 B. Disbursement 26 C. Accounting 27 D. Auditing and Public Disclosure 27 VI. PROCUREMENT AND CONSULTING SERVICES 28 A. Advance Contracting and Retroactive Financing 28 B. Procurement of Goods, Works, and Consulting Services 28 C. Procurement Plan 29 D. Consultants’ Terms of Reference 29 VII. SAFEGUARDS 29 A. Environment 29 B. Involuntary Resettlement 31 C. Indigenous Peoples 32 D. Grievance Redress Mechanism 32 E. Prohibited Investment Activities 32 VIII. GENDER AND SOCIAL DIMENSIONS 32 A. Gender and Development 32 B. HIV/AIDS 34 C. Health 34 D. Labor 35 IX. PERFOMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION35 A. Project Design and Monitoring Framework 35 B. Monitoring 35 C. Evaluation 36 D. Reporting 37 E. Stakeholder Communication Strategy 37 X. ANTICORRUPTION POLICY 38 XI. ACCOUNTABILITY MECHANISM 38 XII. RECORD OF CHANGES TO THE FACILITY ADMINISTRATION MANUAL 39 Appendixes A. LIST OF PROJECTS (PROPOSED AT THE APPRAISAL OF MFF) 40 B. LIST OF EQUIPMENT TO BE PROCURED UNDER THE MFF 86 C. DESIGN AND MONITORING FRAMEWORK OF THE MFF 90 D. PROCUREMENT PLAN 94 E. TERMS OF REFERENCE FOR EASTERN PROVINCE 114 F. TERMS OF REFERENCE FOR NORTHERN PROVINCE 130 G. TERMS OF REFERENCE FOR UVA PROVINCE 146 H. TERMS OF REFERENCE FOR WESTERN PROVINCE 162 I. ENHANCEMENT OF RESEARCH AND DEVELOPMENT DIVISION 178 J. MECHANISTIC–EMPIRICAL PAVEMENT DESIGN CONSULTANTS 180 K. OUTLINE TERMS OF REFERENCE FOR INDIVIDUAL CONSULTANTS (ADVISORY SERVICE) 182 L. GENDER ACTION PLAN PROGRESS UPDATE FORMAT 186 Facility Administration Manual Purpose and Process The facility administration manual (FAM) 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 of the Democratic Socialist Republic of Sri Lanka and the Asian Development Bank (ADB). The FAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the FAM. The Ministry of Highways, Road Development, and Petroluem Resources Development (MOHRP) and the Road Development Authority (RDA) 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 the MOHRP and the RDA 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 FAM 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 FAM 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 Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the FAM. I. PROJECT DESCRIPTION 1. The Second Integrated Road Investment Program for the Democratic Socialist Republic of Sri Lanka will improve the accessibility of the road network in rural areas and thereby increase the involvement of the rural population in nationwide economic and social development. The program, also called iRoad 2, will (i) upgrade and maintain about 3,400 kilometers (km) of rural access roads to all-weather standard; (ii) rehabilitate and maintain in good condition about 340 km of national roads in Eastern, Northern, Uva, and Western Provinces; and (iii) improve the capacity of road agencies with respect to safeguards, road safety, road maintenance, research capacity, and road design and construction. 2. Impact and outcome. The impact of the investment program will be improved connectivity between rural communities and socioeconomic centers in Sri Lanka to align with the government strategy. The outcome will be increased transport efficiency on project roads. 3. Outputs. The outputs of the proposed time-slice multitranche financing facility (MFF) will be (i) improved road conditions of about 3,400 km rural roads and 340 km national roads between the selected rural communities and socioeconomic centers, and (ii) enhanced capacity of road agencies. A list of project roads under the MFF is in Appendix A. A list of equipment for research capacity enhancement is in Appendix B. II. IMPLEMENTATION PLANS A. Project Readiness Activities Table 1: Project Readiness Activities Month Loan Processing Project Implementation Year ADB Actions Government Actions ADB Actions Government Actions Cabinet approved the Finalization of bid Apr Review bid project in January documents and 2017 documents 2017 safeguard documents Finalize shortlist and May Fact-finding mission RFP for consultants 2017 and Submission 1 Review and June Aide Memoire approval of Advertise bidding 2017 endorsed Submission 1 for consulting packages Technical proposal opening, for consulting contracts Management review July meeting FFA signing Bid opening and start 2017 PFR 1 submitted technical bid Loan negotiations evaluation Submit technical bid evaluation to ADB Review and approval of Financial proposal Submission 2 for Aug opening, preparation of consulting contracts 2017 Submission 3 for Review and consulting contracts approval of technical bid evaluation 2 Month Loan Processing Project Implementation Year ADB Actions Government Actions ADB Actions Government Actions Financial bid opening and evaluation Review and approval of Submission 3 for Sept consulting contracts Loan approval Preparation of 2017 Submission 4 for Review and consulting contracts approval of financial bid evaluation Review and Oct approval of Loan signing 2017 Submission 4 for consulting contracts Contract award (Works contract) Nov 2017 Contract award (Consulting contracts) Dec Loan effectiveness 2017 Jan 2018 Feb 2018 Mar 2018 ADB = Asian Development Bank, FFA = framework financing agreement, PFR = periodic financing request, RFP = request for proposal. Source: Asian Development Bank. 3 B. Overall Project Implementation Plan Table 2: Project Implementation Plan UP = Uva Province, EP = Eastern Province, NP = Northern Province, WP = Western Province, M-E = mechanistic-empirical, PIC = Project Implementation Consultants, PBM = performance-based maintenance. Source: Asian Development Bank. 4 III. PROJECT MANAGEMENT ARRANGEMENTS A. Project Implementation Organizations: Roles and Responsibilities Table 3: Project Implementation Organizations Project Stakeholders Management Roles and Responsibilities Executing Agency Ministry of Highways, Road Development, Overall coordination of project implementation and Petroleum Resources Development Interagency coordination (MOH RP ) Implementing Agency Road Development Authority (RDA) Day-to-day project and safeguards management Consultant recruitment and procurement of works Preparation and submission of withdrawal applications Preparation of project progress reports and safeguard monitoring reports Maintaining project accounts and complete loan financial records National Steering Committee Overseeing and monitoring of project Chair: Secretary of MOHRP implementation as well as the adequacy of overall Members: project funding Chief secretaries of the provinces under the Holding meetings as required, at least quarterly, to investment
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