Local Government Enhancement Sector Project

Project Administration Manual

Project Number: 42459 Loan Number: Loan 2790-SRI

February 2016

Democratic Socialist Republic of Sri Lanka: Local Government Enhancement Sector Project

Prepared by LGESP (Pura Neguma) Project Management Unit for the Ministry of Provincial Councils and Local Government, Colombo, Sri Lanka and the Asian Development Bank.

This Project Administration Manual is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Contents ABBREVIATIONS 4 I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 4 A. Project Readiness Activities 4 B. Overall Project Implementation Plan 5 III. PROJECT MANAGEMENT ARRANGEMENTS 6 A. Project Implementation Organizations – Roles and Responsibilities 6 B. Key Persons Involved in Implementation 9 C. Project Organization Structure 9 IV. COSTS AND FINANCING 13 A. Initial Cost Estimates by Expenditure Category 13 B. Allocation and Withdrawal of Loan Proceeds 14 C. Initial Cost Estimates by Financier 15 D. Initial Cost Estimates by Outputs/Components 16 E. Initial Cost Estimates by Year 17 F. Contract and Disbursement S-curve 18 G. Fund Flow Diagram 19 V. FINANCIAL MANAGEMENT 20 A. Financial Management Assessment 20 B. Disbursement 23 C. Accounting 24 D. Auditing 24 VI. PROCUREMENT AND CONSULTING SERVICES 24 A. Advance Contracting and Retroactive Financing 24 B. Procurement of Goods, Works and Consulting Services 25 C. Procurement Plan 25 D. Consultant's Terms of Reference 25 VII. SAFEGUARDS 26 VIII. GENDER AND SOCIAL DIMENSIONS 26 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 29 A. Project Design and Monitoring Framework 29 B. Monitoring 29 C. Evaluation 29 D. Reporting 30 E. Stakeholder Communication Strategy 30 X. ANTICORRUPTION POLICY 31 XI. ACCOUNTABILITY MECHANISM 31 XII. RECORD OF PAM CHANGES 31

APPENDIXES

1: List of Local Authorities for the Project 2: Local Authority and Subproject Selection Criteria 3: Procurement Plan 4: Terms of Reference for Consulting Services 5: Consultation and Participation Plan 6: Design and Monitoring Framework

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 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 MPCLG, provincial councils, and participating local authorities 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 the MPCLG provincial councils, and participating local authorities of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

At Loan Negotiations the borrower and ADB have agreed to the PAM and ensure consistency with the Loan agreement. Such agreement have been 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 Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

Abbreviations

ADB = Asian Development Bank AFS = audited financial statements AF = Additional Financing

ARS = Imprest Account Reconciliation Statement C&P = Consultation and Participatory CEA = Central Environmental Authority DMF = design and monitoring framework DSC = design and supervision consultant EARF = environmental assessment and review framework EIA = environmental impact assessment EMP = environmental management plan IEE = initial environmental examination IPP = indigenous people plan IPPF = indigenous peoples planning framework LGIIP = Local Government Infrastructure Improvement Project M&E = monitoring and evaluation MLGPC = Ministry of Local Government and Provincial Councils MPCLG = Ministry of Provincial Council & Local Governments MOFP = Ministry of Finance and Planning NSC = National Steering Committee NSWMSC = National Solid Waste Management Support Center NWSDB = National Water Supply and Drainage Board O&M = operation and maintenance PAM = project administration manual PMC = project management consultant PMU = project management unit

PSC = Provincial Steering Committee RRP = Report and Recommendation of the President to the Board SOE = statement of expenditure SPCU = Subproject Coordination Units SPS = Safeguard Policy Statement

UDA = Urban Development Authority

I. PROJECT DESCRIPTION

1. The Project. The project will improve the effective delivery of local infrastructure and services by local authorities in less-developed areas of Sri Lanka. Under the project, 1131(108 + 5) local authorities selected in seven provinces (excluding the Northern and Eastern provinces), whose reform plans are reviewed and confirmed by the government, will implement subprojects for roads and bridges, bus stands, water supply and sanitation, drainage, solid waste management, and other basic facilities, including building or enhancing health-care centers and public markets. The project also covers providing safe drinking water to the 8 pradeshiya sabhas amongst 113 which are affected by chronic kidney diseases. The project will support the institutional strengthening of the local authorities for improved and sustainable service delivery through business process reengineering and the development of their information technology (IT) system.

2. Impact and Outcome. The impact of the project will be local authorities’ capacity financially and technically strengthened in less-developed areas of seven provinces in Sri Lanka, and the outcome of the project will be improved local infrastructure and services delivered effectively by local authorities. The project will be implemented in less-developed areas in seven provinces, excluding the Northern and Eastern provinces.

3. Component 1: Local Government Infrastructure and Service Delivery Improvement. In this component, social and economic infrastructure in less-developed areas will be improved by participating local authorities, in line with the second pillar of the sector development plan. The project will adopt a bottom–up, demand-driven approach, whereby priority subprojects will be identified, proposed, implemented, and managed by local authorities. 113 (108+5) pradeshiya sabhas selected by the government will first have to submit a reform plan approved through a council resolution, which will be reviewed and confirmed by the Ministry of Provincial Councils and Local Government (MPCLG) in consultation with the provincial councils to ensure that the minimum reform requirements are met. Then they will be qualified for the provision of a capital grant under this component for infrastructure improvement. Each reform plan will present the clear commitment of the local authority to (i) improve service delivery with particular emphasis on the local environmental improvement; (ii) streamline taxation, licensing, and approval systems and processes;2 (iii) ensure the effective management of the assets, including those to be created under the project; and (iv) improve systems and management. The implementation of each reform plan will be closely monitored by the project management unit (PMU) in the MPCLG and subproject coordination units (SPCUs) in provincial councils. The successful implementation of reforms under such reform plans is a key factor in determining budgetary support for local authorities.

4. Eligible subprojects include (i) environmental infrastructure such as water supply and sanitation (including sewerage), drainage, and solid waste management; (ii) economic infrastructure such as roads and bridges (including suspension bridges); (iii) public health infrastructure such as maternity and health-care centers; and (iv) other local authority facilities such as public markets. To strengthen the focus of the project, other facilities under the responsibility of local authorities, such as local authority office buildings, libraries, and crematoriums, will be approved only under special circumstances and if clearly justified. Subprojects will be screened initially by the SPCUs to ensure conformity with the provincial physical development plan and subproject selection criteria before they will be endorsed by

1 Recently 5 additional pradeshiya sabhas which were affected by Chronic Kidney Diseases were added to provided safe drinking water for these areas. 2 (i) Assessment and business taxes and the collection of rental fees, (ii) business and trade licensing, and (iii) permits for constructing buildings and land transactions.

2 the PMU. The PMU will engage one Project Management Consultant (PMC) to assist in management of the project and seven teams of design and supervision consultants (DSCs) (one per province) to ensure the quality of work.

5. Component 2: Local Government Policy Reform and Capacity Building Support. This component will assist the implementation of the first pillar of the sector development plan (reform advancement) by supporting (i) local authorities’ institutionalizing business process reengineering, including the implementation of relevant bylaws and regulations, with capacity development support provided to the local authorities,3 and (ii) the development of an IT system, including updating and computerizing databases for taxes, licenses, and other information, as well as developing financial accounting and asset- management systems mainly in participating pradeshiya sabhas for more efficient and citizen-friendly administration.4 This will facilitate local authorities’ implementation of reforms, particularly for streamlining taxation, licensing, approval systems and processes, and improving financial management including revenue enhancement in the medium term. Analytical and implementation support will be provided through capacity development TA. Implementation performance will be evaluated under the project and be the basis for the government’s decisions on scaling up further assistance.

6. Capacity development TA for Local Government Service Enhancement will support local government policy reform, and its output will be (i) recommendations for business process reengineering proposed for improved and more efficient service delivery in local authorities and (ii) capacity development support to undertake local business process reengineering. The main activities will be (i) proposing business process reengineering through a review of current tax, licensing, and approval systems and processes in local authorities; (ii) drafting bylaws and regulations governing local governments to support business process reengineering; and (iii) supporting the preparation and implementation of IT system development in local authorities. The TA will undertake the analytical work and help develop institutional capacity to implement component 2 of the project.

7. Component 3: Project Management and Administration Support. This component will support the smooth and effective implementation and operation of the project. The PMU in the MPCLG will manage project implementation, supported by the project management consultant. The SPCU in each province will coordinate and supervise all project activities, including the implementation of subprojects and reform plans in local authorities under their jurisdiction. Training programs will be provided to strengthen the capacity of provincial and local governments to effectively plan development and efficiently administer local development.

8. Sector Development Plan. The project will follow a sector lending modality. Building on the government development policy framework and the National Policy on Local Government adopted in 2009, the Local Government Development Plan, which is a medium- term sector development plan of the MPCLG has been formulated. The plan has two pillars: (i) advancing the reform of local government systems, and (ii) improving infrastructure and services, particularly in areas with deficient services. The MPCLG has the institutional capacity to implement the plan with support provided through the project and TA. The project

3 This initiative is linked with the development of more accountable revenue management in the central government through the establishment of a revenue administration management information system for the Inland Revenue Department in the Ministry of Finance and Planning, financed by ADB (ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical Assistance Grant to the Democratic Socialist Republic of Sri Lanka for the Fiscal Management Efficiency Project. Manila [Loan 2624-SRI].). 4 The system will initially be developed for at least 10% of willing local authorities (20–25 in total), including a few municipal councils and/or urban councils, as large local authorities are expected to benefit greatly from system development. 3

will play a key role in assisting the government in implementing both pillars of the plan and is expected to achieve great impact toward strengthening the financial and management capacity of local authorities.

9. Selection of Local Authorities. As the project will focus on infrastructure improvement in less-developed areas, the MPCLG decided to identify less developed areas where availability of economic and social infrastructure and services are limited and the capacity of pradeshiya sabhas is weak. The MLPCLG first appointed a committee to study and finalize the indicators for defining less developed local authorities. In total, 19 indicators were selected in the areas of (i) geographic location and demography; (ii) social infrastructure and quality of life; (iii) physical infrastructure and services; (iv) financial strength and resources; and (v) local authority management capacity. Then the evaluation was undertaken for a total of 204 pradeshiya sabhas in the seven provinces, based on the provincial information and data as well as validations through various clarifications from national and provincial authorities and institutions. Out of the total score of 200 points, scores actually given ranged from 155 (least developed) to 50.25 (most developed). A total of 98 local authorities, with scores higher than 117, have been selected initially, and 10 more local authorities have been added, thereby making the total 108. ADB recently agreed to include 5 more pradeshiya sabhas which were affected by chronic kidney diseases in order to provide safe drinking water thereby making the total to 113, These will be made eligible for infrastructure investment support under the project, as shown in Appendix 1, unless otherwise agreed upon between the government and ADB.5 These local authorities will be qualified for funding only if they submit a reform plan and the plan is reviewed and confirmed by the government. The PMU will submit to ADB for review the reform plans of first five local authorities together with the checklist to demonstrate that minimum requirements are satisfied.

10. Selection of Subprojects. Eligible subsectors for infrastructure improvement are given in para 4. Subprojects not listed are generally not accepted and may be approved only under special circumstances and if clearly justified. This is subject to ADB’s prior approval. Subproject selection criteria, both general ones and sector-specific, have been developed. General criteria include identification of subprojects through participatory processes, consideration to technical, economic, and financial feasibility, addressing gender aspects, and compliance with safeguards requirements. Sector-specific criteria reflect the characteristics of sub-sectors and address technical, economic, and financial feasibility as well as due consideration to the technical and financial sustainability of the system. Details are provided in Appendix 2. The PMU will submit to ADB for review the proposal of the first two subprojects of each subsector, together with the checklist to demonstrate compliance with the selection criteria, when (i) feasibility studies are prepared, and (ii) detailed designs are prepared. Subsequently, ADB will review the DPRs of first five water supply and sewerage subprojects. ).

5 Local authorities that received the financial support under the Local Government Infrastructure Improvement Project (Loan 2201-SRI) have been excluded. A few local authorities with scores lower than 117 have been added due to their backwardness that could not be quantitatively measured in the evaluation. 4

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Months (2011/2012) Activity 8 9 10 11 12 1 2 3 Responsibility Recruitment of PMC AN S1 S2 S3 S4 PMU Recruitment of DSC AN S1 S2 PMU/SPCUs Assignment of core staff in PMU and SPCUs X MLGPC/ Provincial Councils ADB Board approval X ADB Loan signing X MOFP/ADB Government legal opinion provided X MOFP Loan effectiveness X MOFP/ADB

ADB = Asian Development Bank, AN = announcement, DSC = design and supervision consultants, MLGPC = Ministry of Local Government and Provincial Councils, MOFP = Ministry of Finance and Planning, PMC = project management consultant, PMU = project management unit, S1 = Shortlisting of consulting firms and requests for proposals, S2 = Evaluation of technical proposals, S3 = Financial Proposals, Evaluation and Overall Ranking of Proposals, S4 = Draft negotiated contracts, SPCU = subproject coordination unit.

B. Overall Project Implementation Plan

2011 2012 2013 2014 2015 2016 DESCRIPTION Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Component 1: Local Government Infrastructure and Service Delivery Improvement 1.1 Planning and Priority subproject identificaton (assisted by PPTA) 1.2 Review of subprojects by PMU and SPCU's 1.3 Recruitment of design and supervision consultants 1.4 Preparation of feasibility studies, detailed design and bid coduments of subprojects 1.5 Bidding and contract award for civil works and equipment 1.6 Construction of works and supply of equipment 1.7 Operation and maintenance support

Component 2: Local Government Policy Reform and Capacity Building Support 2.1 Data updates and entry local authorities (Assessment data) 2.2 IT system development (By Project Management Consultants) 2.3 Implementation of the new system and businees processes 2.4 Evaluation of implementation of the new system and business processes CDTA Recruitement of CDTA consultants Review of existing tax, licensing and approval systems and processes Review of software developed by ICTA Preparation for the two packages under Component 2 Rewiew and approval of the proposed changes by the government Drafting by-laws and regulations for streamlining and improvement Rewiew and approval of the proposed by-laws and regulations by the government Support for implementation of the new system and business processes

Component 3: Project Management and Administration Support 3.1 Assignment of core staff in PMU and SPCU's  3.2 PMU and SPCU's fully staffed  3.3 Recruitment of project management consultant (assisted by PPTA) 3.4 Reform plan development (assisted by PPTA) 3.5 Review of reform plans by PMU and SPCU's (Including implementation) 3.6 Development of project performance management system  3.7 Project management and administration 3.8 Project-specific evaluation survey 3.9 Reform plan implementation and monitoring

Implementation Gender Action Plan Time Frame ICTA = Information & Communication Technology Agency , MLGPC = Ministry of Local Government and Provincial Councils, PMU = Project Management Unit PPTA = Project preparatory technical assistance, SPCU = Subproject coordination unit

III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

Project implementation Management Roles and Responsibilities organizations  MPCLG (executing  guides and supports the overall project agency) implementation  (Secretary) chairs the NSC and Ministerial Committee  makes key policy level decisions to facilitate project implementation  Coordinate with treasury and obtain adequate counterpart funding  liaise with MOFP and other ministries on matters under their jurisdictions  confirms reform plans and subprojects

 Project Management  coordinates and manages overall project Unit (in MLGPC) implementation  coordinates all project activities  serves as point of contact with ADB (including reporting requirements)  submits withdrawal applications  engages project management consultant (PMC)  engages design and supervision consultants (DSCs)  reviews documents submitted by SPCUs to ensure they are in order, for submission to ADB  establishes and manages the imprest account  assists the provincial councils and local authorities by implementing the capacity development programs  reviews and endorses reform plans submitted by local authorities through the SPCUs, submit them to the MPCLG for final confirmation, and monitors and assesses the performance of the implementation of reform plans  Submits audited project accounts and financial statements annually within 9 months after the end of each fiscal year

 National Steering  (Chair: Secretary of MPCLG; members: Senior Committee (NSC) Members of MPCLG, Ministry of Finance, Ministry of National Policies and Economic Affairs [External Resources Department, National Planning Department], National Budget Department, and Department of Foreign Aid and Budget Monitoring], National Physical Planning Department, Finance Commission, Provincial chief secretaries, Urban 7

Development Authority, National Water Supply and Drainage Board, Central Environmental Authority, National Solid Waste Management Support Center, project director [member secretary])  oversees the project at the national level and take necessary actions/decisions to ensure time implementation of the project  advises and guides the project on strategic and policy issues  ensures necessary coordination among different central /provincial government agencies  monitors the implementation of reform plans by local authorities and provides necessary guidance for effective implementation; ensures that successful implementation of reforms is a key factor in determining the level of budgetary support for the relevant local authority.

 Provincial Councils  ensures coherence between the provincial physical (SPCUs) (total 7) development plan and subproject proposals made by local authorities  undertakes the initial evaluation of subproject proposals submitted by local authorities before submitting them to PMU  takes the lead in procurement of civil works and equipment contracts in close coordination with participating local authorities  monitors subproject implementation and conducts project quality and assurance, including compliance with safeguard requirements  reviews and endorses reform plans submitted by local authorities, submits them to the PMU, and monitors the implementation of reform plans  Submits, through PMU, audited project accounts annually within 9 months after the end of each fiscal year

 Provincial Steering  (chair: provincial chief secretary; members: Committee (PSC) Secretary of the Provincial Local Government Ministry, regional representatives of the CEA, NWSDB, UDA, and Commissioner of Local Government [member secretary])  regularly reviews the project progress and takes necessary actions on project implementation issues within its authority  enhances collaboration among relevant departments and organizations  expedites decision-making processes with an aim at achieving intended project output and outcome  monitors the implementation of reform plans by

local authorities and provides necessary guidance for effective implementation

 ADB  Supervises the overall project implementation  Reviews procurement and disbursement documents and acts accordingly  Undertakes project review at least twice a year

ADB = Asian Development Bank, CEA = Central Environmental Authority, MPCLG = Ministry of Provincial Councils Local Government , MOFP = Ministry of Finance and Planning, NWSDB = National Water Supply and Drainage Board, PMU = project management unit, SPCU = subproject coordination unit, UDA = Urban Development Authority.

B. Key Persons Involved in Implementation

Executing Agency MPCLG  Officer's Name: Mr. H T Kamal Pathmasiri Position: Secretary Telephone: 94-11-2329673 Email address: [email protected]  Office Address: 330, Union Place, Colombo 02

Officer’s name: Mr.S G Chandradasa Position: Project Director Telephone: 94-11-269-1002 Email address: [email protected] Office Address:191 A, J R Jayawardane Centre, 2nd Floor, Dharmapala Mawatha, Colombo 07

ADB  Staff Name: Dr. Sekar Bonu Urban Development and Water Position: Director Division, South Asia Department Telephone No. 63-2-632-4444 (SAUW) Email address: [email protected]

Sri Lanka Resident Mission S. Widowati (SLRM) Position: Country Director Telephone No. +94 11 4 455 455 Email address: [email protected]

Project Officer Staff Name: Mr. H. Jayasundara Position: Associate Project Officer, Sri Lanka Resident Mission Telephone No. +94 11 4455455 -Ex 427 Email address: [email protected]

C. Project Organization Structure

11. The implementation arrangements will follow those established and proven effective under the LGIIP with necessary changes as required to suit the current project. The PCU in the MPCLG, established under the LGIIP, is renamed PMU,6 and it will manage overall project implementation, supported by the project management consultant. The SPCU in each province will coordinate and supervise all the project activities including implementation of subprojects and reform plan in local authorities in their jurisdiction. At the central level, a national steering committee (NSC) will continue to be operational, with the secretary of MPCLG as the chair, Senior Officers of MPCLG and representatives of the External Resources Department, National Planning Department, Finance Commission, National Budget Department, Department of Foreign Aid and Budget Monitoring, National Water Supply and Drainage Board (NWSDB), Ministry of National Policies and Economic Affairs,

6 As the LGIIP included a loan portion in infrastructure financing, appraisal of subprojects and disbursement were administered by the Project Appraisal Unit (later renamed Project Management Unit) in the Local Loans and Development Fund, under the overall guidance and supervision by the PCU in the MLGPC. This structure will be streamlined in the project, with PMU in the MLGPC taking responsibility for overall project management and supervision.

Urban Development Authority (UDA), National Solid Waste Management Support Center, National Physical Planning Department, and Central Environmental Authority (CEA), and provincial chief secretaries as members, and the project director as member and the convener of the NSC. The NSC will oversee the project implementation at the national level, ensure institutional coordination, and recommend key policy decisions to ensure smooth and successful implementation of the project. In each province, a provincial steering committee (PSC), established under the LGIIP, will continue to be functional, to discuss project implementation issues, enhance collaboration among relevant departments and organizations, and expedite decision-making processes with an aim at achieving intended project output and outcome. Each PSC will be chaired by the chief secretary of the province, and members will include the Commissioner of Local Government (also as the convener of the PSC), Secretary of the Provincial Local Government Ministry, and regional representatives of the CEA, NWSDB, and UDA. Ministerial Committee in the MPCLG will also be formed, comprising Secretary as the chair, Additional Secretary (Projects) project director of PMU, and chief accountant of the MLGPC as members. The structure is shown in the diagram below. The government shall ensure that the implementation arrangements described above shall continue and the PMU, NSC, PSC and SPCUs shall fully and effectively carry out their respective functions in support of the project, notwithstanding completion of the LGIIP.

D. Project Staff

(i) Project Management Unit

Position Number of staff Project Director 1 Deputy Project Director 1 Procurement and Compliance Officer 1 Senior Engineers (one will be engineer cum quantity surveyor) 2 Accountant Payment 1 Accountant Audit 1 Financial Analyst 1 Manager –Administration and Human Resources 1 Manager –Institutional Development and Reform 1 Social Safeguards and Gender 1 Environmental Safeguards 1 IT Manager 1 Solid Waste Management Coordinator (from National Solid Waste Management Support Center) 1 Legal Officer (from Legal Section in the MPCLG) 1 Local Government Officer (from the MPCLG) 1 Project Secretary 1 Data Entry Operator 2 Management assistant 1 Accounts Assistant 1 Office Assistant 2 Driver 3 Total 26 (13 core staff)

(ii) Subproject Coordination Units (per province)

Provincial Project Director (Commissioner of Local Government) 1 Sr. Engineers (1 Engineer and 1 Compliance Officer) 2 Engineer 1 Institutional Development Manager/ Specialist 1 Social Safeguards and Gender Manager 1 Deputy Manager Engineering (1 Technical and 1 Quantity Surveyor) 2 Accountant 1 Project Secretary/Administrative Assistant 1 Data Entry Operator 1 Accounts Assistant 1 Office Assistant 1 Driver 1 Total 14 (9 core staff)

The MPCLG and provincial councils will optimize the involvement of permanent staff in the PMU and SPCUs respectively to institutionalize the project. 13

IV. COSTS AND FINANCING

12. The project is estimated to cost $68.8 million. The government has requested a loan of SDR36,898,000 ($59 million equivalent (currently during reallocation - $ 52.78 million)) from ADB’s Special Funds resources to help finance the project. The loan will have a 32- year term, including a grace period of 8 years, an interest rate of 1.0% per annum during the grace period and 1.5% per annum thereafter, and such other terms and conditions set forth in the loan agreement.

13. The loan from ADB will finance (i) part of civil works and equipment costs (including system development), (ii) consulting services, (iii) part of incremental recurrent costs, and (iv) financial charges during implementation.7 The government will provide $9.8 million equivalent to cover (i) taxes and duties, (ii) part of civil works and equipment costs (including system development), (iii) part of incremental recurrent costs, and (iv) environmental and social mitigation costs, which include administration costs for environmental clearance and costs for land acquisition and resettlement. The last item will be borne by the local authorities.

A. Initial Cost Estimates by Expenditure Category

($ million) % of Total Foreign Local Total Base Item Currency Currency Cost Cost A Investment Costs

1 Civil Works and Equipment 8.03 32.11 40.14 66.56% 2 Environment and Social Mitigation - 0.40 0.40 0.67% 3 System Development 0.56 0.83 1.39 2.30% 4 Consultants 2.05 4.54 6.58 10.91% a. Design and Supervision 1.29 3.00 4.29 7.11% b. Project Management and Capacity 0.76 1.54 2.29 3.80% Development 5 Taxes - 7.54 7.54 12.50% Subtotal (A) 10.63 45.42 56.05 92.93% B Incremental Recurrent Costs

1 Project Management and Administration - 4.18 4.18 6.93% 2 Taxes - 0.08 0.08 0.13% Subtotal (B) - 4.26 4.26 7.07% Total Base Cost 10.63 49.68 60.31 100.00% C Contingencies

1 Physical 0.81 3.20 4.01 6.65% 2 Price 0.70 2.74 3.44 5.70% Subtotal (C) 1.51 5.94 7.45 12.35% D Financing Charges During Implementation 1.01 - 1.01 1.68% Total Project Cost (A+B+C+D) 13.15 55.62 68.77 114.02%

Note: Numbers may not sum precisely because of rounding

7 Transportation and insurance costs may also be financed.

B. Allocation and Withdrawal of Loan Proceeds

14. Allocation and withdrawal of loan proceeds is presented below.

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (Local Government Enhancement Sector Project)

CATEGORY ADB FINANCING

Total Amount Allocated # Percentage and Basis for Number Item for ADB Financing (SDR) Withdrawal from the Loan Category Account ($ in parenthesis)

Civil Works and 29,289,618.41 1 Equipment (41,896,877.03) 84% of total expenditure claimed

291,729.32 2 System Development (417,299.65) 84% of total expenditure claimed

4,115,000 100% of total expenditure 3 Consulting Services (5,886,237.46) claimed*

Incremental Recurrent 2,383,000 4 Costs (3,408,725.12) 89% of total expenditure claimed 632,000 5 Interest Charge (904,034.53) 100% of amount due

6 Unallocated 186,652.26(266,993.81) 36,898,000 Total (52,780,167.59)

* Exclusive of taxes and duties imposed within the territory of the Borrower. # Reallocation figures with respect to conversion figure on 20 May 2015 as approved by ADB

C. Initial Cost Estimates by Financier

($ million) ADB ADF Government % of Cost % of Cost Total Amount Category Tax Non Tax Amount Category Cost Item {B} {B/F} {E} {E/F} {F} A. Investment Costs 1 Civil Works and Equipment 39.00 83.69% 6.46 1.14 7.60 16.31% 46.60 2 Environment and Social Mitigation - 0.00% - 0.40 0.40 100.00% 0.40 3 System Development 1.36 84.24% 0.23 0.03 0.26 15.76% 1.62 4 Consultants 6.58 88.65% 0.84 - 0.84 11.35% 7.42 a. Design and Supervision 4.29 88.65% 0.55 - 0.55 11.35% 4.84 b. Project Management and Capacity Development 2.29 88.65% 0.29 - 0.29 11.35% 2.59 Subtotal (A) 46.95 83.76% 7.54 1.57 9.10 16.24% 56.05

B. Incremental Recurrent Costs 1 Project Management and Administration 3.81 89.30% 0.08 0.38 0.46 10.70% 4.26 Subtotal (B) 3.81 89.30% 0.08 0.38 0.46 10.70% 4.26 Total Base Cost 50.75 84.15% 7.62 1.94 9.56 15.85% 60.31

C. Contingencies 1 Physical 3.90 97.22% - 0.11 0.11 2.78% 4.01 2 Price 3.34 97.10% - 0.10 0.10 2.90% 3.44 Subtotal (C) 7.23 97.16% - 0.21 0.21 2.84% 7.45 D. Financing Charges During Implementation 1.01 100.00% - - - 0.00% 1.01 Total Project Cost (A+B+C+D) 59.00 85.80% 7.62 2.15 9.77 14.20% 68.77 85.80% 14.20% % Total Project Cost

Note: Numbers may not sum precisely because of rounding

D. Initial Cost Estimates by Outputs/Components

($ million) Component 1 Component 2 Component 3

Total % of Cost % of Cost % of Cost Item Cost Amount Category Amount Category Amount Category A. Investment Costsb 1 Civil Works and Equipment 40.14 40.14 100.00% - 0.00% - 0.00% 2 Environment and Social Mitigation 0.40 0.40 100.00% - 0.00% - 0.00% 3 System Development 1.39 - 0.00% 1.39 100.00% - 0.00% 4 Consultants 6.58 4.29 65.14% 0.71 10.74% 1.59 24.12% a. Design and Supervision 4.29 4.29 100.00% - 0.00% - 0.00% b. Project Management and Capacity Development 2.29 - 0.00% 0.71 30.82% 1.59 69.18% 5 Taxes 7.54 7.01 93.05% 0.32 4.25% 0.20 2.70% Subtotal (A) 56.05 51.84 92.49% 2.42 4.31% 1.79 3.19%

B. Incremental Recurrent Costs 1 Project Management and Administration 4.18 - 0.00% - 0.00% 4.18 100.00% 2 Taxes 0.08 - 0.00% - 0.00% 0.08 100.00% Subtotal (B) 4.26 - 0.00% - 0.00% 4.26 100.00% Total Base Cost 60.31 51.84 85.96% 2.42 4.01% 6.05 10.04%

C. Contingencies 1 Physicalc 4.01 3.99 99.43% - 0.00% 0.02 0.40% 2 Priced 3.44 3.00 87.17% 0.13 3.67% 0.31 9.16% Subtotal (C) 7.45 6.98 93.77% 0.13 1.70% 0.33 4.44% D. Financing Charges During Implementatione 1.01 0.88 86.82% 0.04 3.75% 0.10 9.42% Total Project Cost (A+B+C+D) 68.77 59.70 86.82% 2.58 3.75% 6.48 9.42%

a Exchange rate of 1$=SLRs. 110 has been used.

b  In Mid-2011 prices.

c  Computed at 10% for civil works; and 8% for equipment.

d  Price contingencies computed at 1.5% per annum.

e  Interest during construction for ADB loan has been computed at 1% per annum. Source: Asian Development Bank estimates

Note: Numbers may not sum precisely because of rounding

E. Initial Cost Estimates by Year

($ million) Total Item Cost Year 1 Year 2 Year 3 Year 4

A. Investment Costs 1 Civil Works and Equipment 40.14 - 5.02 12.04 23.08 2 Environment and Social Mitigation 0.40 0.10 0.10 0.10 0.10 3 System Development 1.39 0.13 0.24 0.49 0.53 4 Consultants 6.58 1.02 1.76 1.90 1.90 a. Design and Supervision 4.29 0.66 1.15 1.24 1.24 b. Project Management and Capacity Development 2.29 0.35 0.62 0.66 0.66 5 Taxes 7.54 0.30 1.13 2.22 3.88 Subtotal (A) 56.05 1.54 8.26 16.76 29.49

B. Incremental Recurrent Costs 1 Project Management and Administration 4.18 1.05 1.05 1.05 1.05 2 Taxes 0.08 0.02 0.02 0.02 0.02 Subtotal (B) 4.26 1.07 1.07 1.07 1.07 Total Base Cost 60.31 2.61 9.32 17.82 30.56 C. Contingencies 7.45 0.08 0.88 2.15 4.34 D. Financing Charges During Implementation 1.01 0.02 0.11 0.29 0.59 Total Project Cost (A+B+C+D) 68.77 2.70 10.32 20.26 35.49

100.00% 3.93% 15.00% 29.46% 51.60% % Total Project Cost

Note: Numbers may not sum precisely because of rounding

F. Contract and Disbursement S-curve

15. Contract awards and disbursement over the life of the project are projected as shown below.

Contract awards Disbursement Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 2012 0 0 0 1.5 1.5 0 0 0 0.4 0.4 2013 1 1 1 3 6 0 0.2 0.2 0.4 0.8 2014 4 6 6 8 24 1 2 4 5 12 2015 4 3 3.0 2.0 12.0 5 5 5 6 21 2016 8.3 0 0 0 8.3 4 4 4 5.6 17.6 51.8 Total 51.8 Total

Note: Contract awards exclude contingencies and financing charges. Disbursement excludes contingencies only.

G. Fund Flow Diagram

ADB Government of loan Sri Lanka

fund flow

Information Consultants (documents) flow contracts

MLGPC PMC, DSCs Imprest payment account (PMU)

Provision of services Provincial supervision Councils (SPCUs) payment

Civil works Local Authorities contractors Civil work contracts

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

16. Key findings of the financial management assessment undertaken for the Ministry of Provincial Councils and Local Government (MPCLG) during project preparation are listed in Table 1.

Table 1: Findings of the financial management assessment Area of Assessment Findings Executing and The executing agency is the Ministry of Provincial Councils and Local Government Implementing Agencies (MPCLG). Implementation is supported by the Subproject Coordination Units (SPCUs) in the Provincial Councils. Major Experiences of MPCLG is currently implementing Loan 2201-SRI: Loan to the Democratic Socialist Managing Externally- Republic of Sri Lanka for the Local Government Infrastructure Improvement Project financed Projects Fund Flow Arrangements All the consultants will be engaged by the project management unit (PMU) in the MPCLG, and the payment will be made by the PMU to the consultants. While contracts will be signed between contractors and local authorities for subprojects, the payment will be made directly by the PMU to the contractors upon endorsement of local authorities. Organization and Staffing There are two sections for Financial Administration and Accounting/Procurement in the Administration and Finance division. The Accounting/Procurement section has one chief accountant and 2 accounts officers for payments and procurement respectively. The present staff is qualified and experienced in Asian Development Bank (ADB) procedures. Accounting Policy and MPCLG follows the government accounting system (cash accounting) that is Procedures regulated by (i) Financial Regulation prepared during the colonial rule and amended from time to time, and (ii) Procurement Guidelines, 2006 (as amended from time to time). Segregation of Duties All the financial accounting functions are appropriately segregated before receipt and payment. Budgeting System A budget is prepared for all significant activities in detail, financial targets are derived from physical targets. The budget is prepared in advance and is compared with actual expenditure. Policies/Procedures The accounting is on a cash basis. Internal Audit There is an internal audit unit (IAU). Headed by an Accountant, the IAU reports direct to the Secretary, MPCLG. External Audit The financial statement is audited by Auditor General’s Department annually based on the National Accounting Standard. Reporting and Monitoring The financial and procurement reports are prepared according to the accounting standard of the government, which is consistent with International Accounting Standards. The reporting of the financial statement is on a monthly basis. The report provides information on the financial statement as well as physical progress. Information System The financial management and procurement system are partly computerized.

17. Actions required to be taken by the Project Management Unit/ Ministry of Provincial Councils Local Government (PMU/MPCLG) are as follows:

(i) PMU financial staff must undergo trainings on Asian Development Bank (ADB) financial management procedures to further strengthen its capacity; and (ii) Implement accounting software.

B. Risk Analysis

18. The Risk Assessment and Mitigation Measures are listed in Table 2.

Table 2: Risk Assessment and Mitigation Measures Risk type Risk Risk Description Mitigation Measures / Comments Assessment* Inherent risk 1. Country-Specific Moderate  Ongoing efforts are underway Risks Low institutional capacity for by government and ADB effective financial management Provision of support (both loan and TA) focused on capacity building in participating local authorities Lack of own-source revenue in local authorities Support revenue administration reforms; and assist in identifying new sources of revenues Lack of complete information for accurate budgeting Provision of loan support for IT systems and ensure that the systems are up and running smoothly

 Manual processes in Loan support for MIS; and TA support public financial for capacity building management systems 2. Entity-Specific Negligible or MLGPC is currently effectively Risks Low implementing Loan 2201-SRI: Loan to the Democratic Socialist Republic of Sri Lanka for the Local Government Infrastructure Improvement Project. 3. Project-Specific Negligible or Local authorities do not have The technical design will take into Risks Low adequate financial and account the capacity of local authorities. technical capacity for O&M Commitment to O&M budget allocation will be confirmed upfront. Capacity development and training programs will be implemented. Resources will be mobilized from technical agencies (e.g. NWSDB, NSWMSC) as needed. Overall Inherent Risk Moderate

Risk type Risk Comments Mitigation Measures Assessment* Control risk 1. Implementing Moderate Single PMU proposed under ADB to provide relevant assistance and Entity Executing Agency MLGPC. training through PMC

A dedicated team will be established in the PMU, which will cover technical, procurement and payment approval processes.

The Finance Section will be responsible for project financial management, accounting and reporting

PMU will adopt program financial management and

Risk type Risk Comments Mitigation Measures Assessment* accounting systems and will be assisted by PMC in this regard.

Staff in proposed PMU has project management experience –including in donor-funded projects. 2. Funds Flow Moderate PMU will control project funds ADB to provide relevant assistance and training as needed A project imprest account will be used to cover payments 3. Staffing Negligible or The Finance Section is Not applicable Low adequately staffed by competent appropriately qualified and experienced personnel

The Finance Section provides a good standard professional quality service to PMU 4. Accounting Negligible or Policies and procedures well Not applicable Policies and Low documented Procedures

PMU had adopted accounting standards prescribed by Auditor General (AG) Department and will be on cash basis 5. Internal Audit Negligible or There is an internal audit unit Not applicable Low (IAU), headed by an accountant.

Capacity seems appropriate. 6. External Audit Negligible or PMU will be audited by AG’s In addition, the Auditor General’s Low Department. Department will also conduct audit of the The annual audit report is project accounts typically produced around within 6-9 months of MPCLG’s year-ends. 7. Reporting and Negligible or A comprehensive monthly ADB to provide relevant assistance and Monitoring Low and quarterly financial training as needed management reporting system is in place for ongoing project and will continue.

Routine reports are produced from the Accounting System – Others prepared through spreadsheets with numbers extracted from the accounting system

A project specific reporting system will be set up – as per ADB’s requirements 8. Information Moderate Computerized accounting ADB to provide relevant assistance and Systems software will be installed in training as needed the PMU for the project accounts. 23

Risk type Risk Comments Mitigation Measures Assessment*

Project performance management system will also be installed Overall Control Risk Negligible or PMU’s financial management Low practices and procedures are considered to be adequate for management and control of project finances ADB = Asian Development Bank, MPCLG = Ministry of Provincial Councils and Local Government, MIS = Management Information System, NWSDB =National Water Supply and Drainage Board, NSWMSC = National Solid Waste Management Support Centre, O&M = operation and maintenance, PMC = project management consultant, PMU = project management unit, TA = technical assistance.

B. Disbursement

19. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time),8 and detailed arrangements agreed upon between the Government and ADB.

20. Pursuant to ADB's Safeguard Policy Statement (SPS),9 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5) to subprojects financed by ADB.

21. PMU will be responsible for (i) preparing disbursement projections, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting supporting documents, and (iv) preparing and sending withdrawal applications to ADB.

22. To ensure the timely release of loan proceeds and to expedite project implementation, an imprest account will be established at the Central Bank of Sri Lanka for MPCLG, immediately after loan effectiveness.10 A second generation imprest account is also approved to be established in accordance with the request of ADB. The maximum ceiling of the imprest account will not at any time exceed the estimated ADB financed expenditures to be paid from the imprest account for the next 6 months or 10% of the respective loan amount, whichever will be lower. However, if the expenditure increases over a period of time and there is need to increase the imprest amount, MPCLG will request the same with necessary projections for consideration of ADB. ADB will after verifying the documents decide on increase of imprest account. The request for initial advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet11 setting out the estimated expenditures for the first six (6) months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the borrower will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against the MLGPC’s records.12

23. ADB's statement of expenditure (SOE) procedures will be utilized to reimburse

8 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf 9 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf 10 ADB loan may finance bank charges. 11 Available in Appendix 29 of the Loan Disbursement Handbook. 12 Follow the format provided in Appendix 30 of the Loan Disbursement Handbook.

eligible expenditures and liquidate advances provided into the imprest account. Any individual payment to be reimbursed or liquidated under the SOE procedures will not exceed the equivalent of $100,000. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.13

24. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. The borrower is to consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing.

C. Accounting

25. The PMU and SPCUs will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow international accounting principles and practices.

D. Auditing

26. The MPCLG and provincial councils will cause the detailed consolidated project accounts to be audited in accordance with International Accounting Standards on Auditing and/or in accordance with the Government's audit regulations by an auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB within 9 months of the end of the fiscal year by the MPCLG. The annual audit report will include a separate audit opinion on the use of the imprest account and the SOE procedures. The government and provincial councils have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

27. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (April 2010, as amended from time to time) (ADB’s Procurement Guidelines)14 and ADB’s Guidelines on the Use of Consultants (April 2010, as amended from time to time) (ADB’s Guidelines on the Use of Consultants).15 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, MLGPC and provincial councils have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the Project.

13 Checklist for SOE procedures and formats are available at: http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls 14 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf 15 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf 25

28. Advance contracting. Advance contracting is approved for the recruitment of PMC and design and supervision consultant (DSCs).

29. Retroactive financing. Retroactive financing is approved in principle for the recruitment of PMC and DSCs and for the establishment and operation of PMU and SPCUs. Retroactive financing will be up to 5% of the total ADB loan amount for eligible expenditures incurred prior to loan effectiveness, but not earlier than 12 months prior to the signing of the loan agreement.

B. Procurement of Goods, Works and Consulting Services

30. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines.

31. International competitive bidding procedures will be used for civil works contracts estimated to cost $ 15 million or more, and supply contracts valued at $2 million or higher. National competitive bidding procedures will be used for civil works contracts worth less than $15 million, and supply contracts worth less than $2 million. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000. Only one contract for IT system development in select local authorities are expected to adopt the international competitive bidding procedures as all other contracts will be less than the above threshold.

32. Before the start of any procurement ADB and the Government will review the public procurement laws of the central government to ensure consistency with ADB’s Procurement Guidelines.

33. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C.

34. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants.16 The terms of reference for all consulting services are detailed in Section D.

35. An estimated 2,142 person-months (42 international, 2,100 national) of consulting services are required to (i) facilitate project management and implementation, (ii) carry out feasibility studies, detailed engineering designs, and construction supervision, and (iii) undertake validation and entry of local authorities’ data with respect to tax and licenses. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality:cost ratio of 80:20.

C. Procurement Plan

36. The procurement plan has been updated as Appendix 3.

D. Consultant's Terms of Reference

37. The terms of reference for consultant contracts have been prepared as Appendix 4.

16 Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

VII. SAFEGUARDS

38. Safeguards frameworks, specifically an environmental assessment and review framework (EARF), a resettlement framework, and an indigenous peoples planning framework (IPPF), have been prepared for the Project. The frameworks will apply to all subprojects prepared for the Project consistent with ADB’s Safeguards Policy Statement, 2009.

39. Environmental Safeguards. The PMU will be staffed with an Environment Safeguards Officer to support the Project Director in addressing project environmental issues. The PMU will be supported by Project Management Consultants (PMC) which will include a Safeguard Expert. Consistent with the safeguards frameworks, three initial environmental examinations (IEEs) have been prepared for sample subprojects (as linked documents).

40. The Subproject Coordination Units (SPCU) will conduct environmental assessments and prepare IEEs for all subprojects consistent with the EARF in close collaboration with the local authorities. Each IEE includes an environmental management plan (EMP). The SPCU will be supported by DSC through their environment specialists in updating and finalizing IEEs prepared during project preparation, and IEEs for all other subprojects. The SPCU with assistance from DSCs will also conduct other assessments required for clearances. The SPCU will oversee disclosure and consultations, incorporate mitigation measures in design and construction; and undertake baseline and construction-stage environmental quality monitoring. The PMU supported by PMC will monitor the implementation of EMPs. The construction contractors will implement mitigation measures in construction.

41. Implementation of mitigation and monitoring measures during the operation and maintenance (O&M) of infrastructure will be the responsibility of the local authorities. Government regulatory agencies such as the Central Environmental Authority will also monitor the environmental performance according to the government regulations.

42. Social Safeguards (Involuntary Resettlement and Indigenous Peoples). The PMU will be staffed with a Social Safeguards and Gender Officer to support the Project Director in addressing project social safeguards issues. The PMU will be supported by Project Management Consultants (PMC) which will include a Safeguard Expert. The Subproject Coordination Units (SPCU) will be staffed with a Social Safeguards and Gender Manager who will lead the preparation of resettlement plans and indigenous peoples plans (IPP) as required, conduct continued consultations and disclosure, and monitor implementation of social safeguards plans as required consistent with the resettlement framework and the IPPF, in close collaboration with the local authorities. The SPCU will be supported by the DSCs through its Social Safeguards and Gender Specialist. The PMU will do overall monitoring of social safeguards implementation in the Project. Construction contractors will implement assistance measures during construction.

VIII. GENDER AND SOCIAL DIMENSIONS

43. The summary poverty reduction and social strategy is prepared for the project. The project will focus its support to the local authorities in less developed areas where poverty is high and basic infrastructure services are lacking, and will support capacity development of financially weak local authorities for performing the mandated services more efficiently and effectively. It aims to provide direct benefits through access to quality basic infrastructure and services; and create a stronger investment climate to accelerate economic growth in backward areas. Key benefits expressed by stakeholders through focus group discussions held during project preparation include enabling small producers to access markets directly 27

with better transportation and roads; increased time for productive labor for income generation and improved health from access to quality drinking water.

44. Subprojects will be implemented through stakeholder participation and consultations using a community-driven development approach which has proven to be successful in the previous Local Government Infrastructure Improvement Project (LGIIP) as well as by donor- funded projects in pro-poor physical infrastructure development projects. The Consultation and Participatory (C&P) plan17 includes the following key aspects: (i) community consultations and mobilization in subproject identification, formulation, design, and implementation; (ii) community participation in subprojects through active civic and community-based organizations to empower them to take over the O&M of projects after completion; (iii) training local authorities’ leaders to apply participatory approaches in community activities, including common decision making and subproject monitoring and evaluation; (iv) encouraging women, youths, and other marginalized social groups to be actively involved and take leadership of subproject planning and implementation; and (v) the inclusion of indicators of social development and poverty reduction as essential to the monitoring and evaluation of the project.

45. Gender action plan is prepared for the project, as shown in the table 3 below. It has the following three major activities: (i) making local authorities gender-responsive and socially inclusive; (ii) creating an environment conducive to the representation of and participation by women and other socially marginalized groups in the project scope; and (iii) addressing needs of women and socially marginalized groups in selecting infrastructure subprojects. The PMU and SPCUs will ensure the implementation of the action plan. In order to address the affordability issues, poor and vulnerable families are allowed to pay water connection charges in installments.

Table 3 GENDER ACTION PLAN

Activity/Measures Indicators/Targets Responsibility

Output 1: Improved local infrastructure and service delivery

(a) Addressing needs and priorities of women and socially marginalized groups in selecting infrastructure subprojects of: (i) water supply and sanitation (including sewerage), (ii) roads and bridges, (iii) solid waste management, (iv) public health-care facilities, and (v) other infrastructure and facilities including public markets. 1. Make the community Consultations are undertaken to pay adequate PMU/SPCU/local consultation/facilitation process attention to gender issues. (Target: 50% of authorities gender sensitive and socially participating local authorities) inclusive

Ensure that at least 15% attendance of women is recorded in CCM conduced in each local authority. (Target: 50% of participating local authorities)

Planning committee of local authorities has a woman representative as a member. (Target: 50% of participating local authorities)

Mid-wife/Public Health Nurse, and Public Health Inspectors are consulted as key informants to identify subprojects which are gender-responsive and socially inclusive.

Provide opportunities for the inclusion of widows, female-heads of households, elderly women,

17 The consultation and participation plan is in Appendix 5.

Activity/Measures Indicators/Targets Responsibility

women in the poorest of the poor families, and women in ethnic minorities into the CCM in order to represent and address their needs. 2. Take affirmative action to Local authorities implement subprojects PMU/SPCU/local ensure that the local authorities particularly benefiting women (such as maternity authorities address women’s needs in health related subprojects). infrastructure and public services Water supply subprojects take account of women’s views in the design of subprojects. (Target: 80% of water supply subprojects) 3. Ensure wage parity during the Women are given equal pay for work of equal PMU/SPCU implementation of infrastructure value. This provision is included in the sub-projects contractual agreements. (Target: 100% of contracts)

4. Gender-sensitive facilities to be Separate toilets for women and men are built in PMU/SPCU constructed public health-care centers, public markets, etc. financed by the project. (Target: 100% of facilities have separate toilets) (b): Making local authorities gender-responsive and socially inclusive 1. Conducting gender sensitization Local authorities receive gender sensitization PMU and SPCU and training programs for local training. (Target: 100% of local authorities) (gender and social authority members and safeguards technical and management staff All relevant local authority personnel (local managers)/DSCs authority chairman, members and the technical staff) have participated in gender sensitization programs. (Target: 50% of participating local authorities)

Local authorities establish and maintain a sex- disaggregated database on project activities. Output 3: Project management and administration supported Creating an environment conducive to the representation of and participation by women and other socially marginalized groups in the project scope 1. Employing a well-qualified A social safeguard and gender manager PMU/SPCUs gender and social development employed in the PMU and SPCUs during the specialist project period. (Target: gender and social safeguards manager in PMU and all SPCUs) 2. Creating and maintaining Physical facilities provided for men and women PMU (Safeguards gender sensitive and women in the project office are appropriate and Specialist)/ SPCU friendly environment in the equitable. (gender and social project office safeguards manager) All the project staff have participated in gender and social inclusion training workshops.

The staff is made aware of ADB and government policies and provisions on gender equality.

3. Gender sensitive monitoring and Sex-disaggregated data pertaining to project PMU/PMC/SPCU/DSC evaluation system activities, and results are appropriately and duly reflected in PPMS.

The progress in gender mainstreaming (and social inclusion) is reported in the project progress and completion reports.

The achievements/shortcomings are duly communicated to the project staff by the gender and social safeguards managers for 29

Activity/Measures Indicators/Targets Responsibility

improvements and adjustments to reach goals and targets. ADB = Asian Development Bank, CCM= community consultative meeting, DSC = design and supervision consultants, PMC = project management consultant, PMU = project management unit, PPMS = project performance management system, SPCU = subproject coordination unit.

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Project Design and Monitoring Framework

46. The Design Monitoring Framework (DMF) has been provided in Appendix 6.

B. Monitoring

47. Project performance monitoring. Within six (6) months of loan effectiveness, the PMU will establish a project performance management system using the targets, indicators, assumptions, and risks in the DMF. The baseline data corresponding to indicators and targets set out in the DMF will be gathered during the detailed design stage, disaggregated by income levels, sex, and ethnicity, as appropriate. After the initial baseline survey, the PMU will conduct monitoring using the same indicators and submit the reports to ADB through quarterly progress reports throughout project implementation. Results of a comprehensive completion survey will be included in the project completion report. These quarterly reports will provide information necessary to update ADB's project performance reporting system.18

48. Compliance monitoring. Status of compliance with loan covenants—policy, legal, financial, economic, environmental, and others— will be reviewed at each ADB review mission. All non-compliance issues, if any, will be updated in quarterly progress reports together with remedial actions.

49. Safeguards monitoring. The PMU with assistance from PMC will consolidate periodic environmental and social monitoring reports from SPCUs (assisted by DSCs) and submit semi-annual monitoring reports to ADB. Safeguards Managers in SPCUs will supervise design and construction works and facilitate preparation of all safeguard documents. Details on environmental and social safeguards monitoring are in safeguards frameworks (environmental assessment and review framework [EARF]; initial environmental examination [IEE]; indigenous peoples planning framework [IPPF]; and resettlement framework are available as linked documents to the RRP.).

50. Gender and social dimensions monitoring. The PMU with assistance from PMC will consolidate in the quarterly progress reports the status of the implementation of gender action plan with inputs from SPCUs (assisted by DSCs). This will be discussed at each ADB review mission.

C. Evaluation

51. The Government and ADB will jointly review the Project at least twice a year. This includes (i) the performance of the PMU, SPCUs, participating local authorities, consultants, and contractors; (ii) compliance with grant eligibility mechanism and subprojects selection

18 ADB's project performance reporting system is available at: http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool

criteria; (iii) physical progress of subprojects; (iv) performance of implementation of reform plans; (v) effectiveness of capacity building programs for local authorities and progress of reform agenda; (vi) inclusion of women and vulnerable groups including the poor in subproject planning and implementation; (vii) compliance with loan covenants; and (viii) assessment of subproject sustainability in technical and financial terms. In addition to the regular reviews, the government and ADB will undertake a comprehensive midterm review in the third year of Project implementation to identify problems and constraints encountered and suggest measures to address them. Specific items to be reviewed will include (i) appropriateness of scope, design, implementation arrangements, and schedule of activities; (ii) assessment of implementation pace and achievements against project indicators; (iii) effectiveness of capacity building programs for local authorities; (iv) compliance with safeguard measures; (v) extent to which the gender action plan is being followed; (vi) achievement of reforms in local authorities; (vii) needs for additional support for O&M of the facilities established under the project to ensure operational sustainability; (viii) lessons learned, good practices, and potential for replication; and (ix) changes recommended. Within 6 months of physical completion of the project, the MLGPC will submit a project completion report to ADB.19

D. Reporting

52. The MLGPC will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan; and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the executing agency audited financial statements (AFSs), together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

53. The Project intends to maximize transparency by communicating relevant project information to stakeholders in various means. The PMU will set up a website within 6 months from the loan effectiveness and disclose all key project-related information, including the scope, cost, and financial and institutional arrangements of the Project, project safeguard reports including the IEE and resettlement plans, procurement plan, and project progress. The website will include information on Project procurement including the list of participating bidders, name of each winning bidder, basic details on bidding procedures adopted, the value of each contract awarded, and the list and value of goods/services procured and the intended utilization of Loan proceeds under each contract being awarded. The website shall also include general Project information, Project progress, and contact details for the Executing Agency’s counterpart staff in Sri Lankan and English languages, and shall link to ADB's Integrity Unit website at http://www.adb.org/Integrity/complaint.asp for reporting to ADB any grievances or allegations of corrupt practices arising out of the Project and/or Project activities. The Borrower shall cause the Executing Agency to ensure that all Project staff are fully aware of ADB’s procedures, including, but not limited to, procedures for implementation, procurement, use of consultants, disbursements, reporting, monitoring, and prevention of fraud and corruption.

54. Each SPCU and participating local authorities will also fully disclose relevant project- related information—such as subproject name and cost, information on bidding, contractor's name, contract price, progress of construction—through public briefings and bulletin boards.

19 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public- Sector-Landscape.rar 31

X. ANTICORRUPTION POLICY

55. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.20 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project.21 To support these efforts, relevant provisions are included in the loan agreement and the bidding documents for the Project. The Borrower shall ensure that all representation letters from the Project auditor are submitted to ADB and any outstanding issues attended to within one (1) month of receipt by the EA, unless otherwise agreed with ADB.

56. Furthermore, the Project intends to maximize transparency, as described in Section IX E above. Full information disclosure and participatory monitoring at both the central and the local levels are expected to be effective in reducing the risk of corruption and improving governance at central and local levels.

57. Within six months of project effectiveness, the PMU will finalize a grievance redress mechanism, acceptable to ADB, and ensure that there is appointed an officer, with the requisite capacity, in each SPCU to receive, resolve or act upon, both independently and expeditiously, complaints or grievances or reports from stakeholders on misuse of funds and other irregularities relating to the Project or the specific subprojects in each provincial council, including but not limited to grievances due to resettlement and environmental issues. Each SPCU shall inform stakeholders of their right to submit complaints or grievances relating to the Project.

XI. ACCOUNTABILITY MECHANISM

58. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.22

XII. RECORD OF PAM CHANGES

59. The first draft of Project Administration Manual (PAM) has been prepared at the loan fact-finding in June 2011. All revisions/updates during course of implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

60. In August 2012, the PAM was updated with regard to (i) addition of 10 local authorities to be supported under the project, including the revision of Appendix 1; (ii) enhancement of the subproject selection criteria in Appendix 2 to be applied to other sectors such as buildings, bus stands, and three-wheeler parks; (iii) clarification of the function of the national and provincial steering committees; and (iv) replacement of Secretary, MLGPC and appointment of Project Director. The procurement plan will also be updated.

61. In December 2013 the PAM was updated to (i) correct number of local authorities in paragraph 1; (ii) indicate exact number of design and supervision consultancy teams in last sentence of paragraph 4; (iii) Add the ‘Ministerial Committee’ under Project Implementation

20 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 21 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp 22 For further information see: http://compliance.adb.org/.

organization – Roles and Responsibilities and revise the names of Project Director, PMU and ADB Mission leader under Key persons involved in Implementation, both under III – Project Management Arrangements; (iv) add the pharse ‘with necessary changes’ at the end of first sentence in paragraph 11; (v) revise paragraph 22 to reflect creation of second generation imprest account and to add provisions of increasing imprest account in case of necessity with justifications; (vi)update procurement plan in Appendix 3; (vii) revise the outline ToR of Design and Supervision consultants of Appendix 4.

62. In February 2016, the PAM was revised basically to revise the names of project authorities, to revise disbursement projections, to insert updated procurement plan and revision of text in the report as relevant to present context. 33

List of Appendixes

Appendix 1: List of Local Authorities for the Project Appendix 2: Local Authority and Subproject Selection Criteria Appendix 3: Procurement Plan Appendix 4: Terms of Reference for Consulting Services Appendix 5: Consultation and Participation Plan Appendix 6: Design and Monitoring Framework

Appendix 1 34

APPENDIX 1: LIST OF SELECTED LOCAL AUTHORITIES

Province Local Authorities District Total Number of Local (Pradeshiya Sabhas) Authorities Western Province Walallavita Kalutara 10

Palindanuwara Kalutara

Madurawala Kalutara

Agalawatta Kalutara

Diulapitiya Gampaha

Dodangoda Kalutara Meerigama Gampaha Mathugama Kalutara Seethawaka Colombo Biyagama Gampaha North Central Province Padaviya Anuradhapura 16

Kebethigollawa Anuradhapura

Horowapathana Anuradhapura

Thirappane Anuradhapura

Welikanda Polonnaruwa

Galenbindunuwewa Anuradhapura

Dimbulagala Polonnaruwa

Ipalogama Anuradhapura

Galnewa Anuradhapura Lankapura Polonnaruwa Palagola Anuradhapura Rambewa Anuradhapura Rajanganaya Anuradhapura Mihintale Anuradhapura Tamankaduwa Polonnaruwa Hingarankoda Polonnaruwa Uva Province Ridimaliyadda Badulla 17

Meegahakiula Badulla

Madulla Monaragala

Kandeketiya Badulla

Haldummulla Badulla

Badalkumbura Monaragala

Uva-Paranagama Badulla

Thanamalwila Monaragala

Wallawaya Monaragala Kataragama Monaragala Medagama Monaragala Siyamabalanduwa Monaragala Bandarawela Badulla Lunugala Badulla

Appendix 1 35

Province Local Authorities District Total Number of Local (Pradeshiya Sabhas) Authorities Haputale Badulla Badulla Badulla Mahiyagana Badulla North Western Province Alawwa Kurunegala 14

Arachchikattuwa Puttalam

Kalpitiya Puttalam

Polpithigama Kurunegala

Ridigama Kurunegala

Wanathawilluwa Puttalam

Nawagattegama Puttalam

Giribawa Kurunegala

Kuliyapitiya Kurunegala Udubaddawa Kurunegala Bingiriya Kurunegala Chillaw Puttalam Mawathagama Kurunegala Mahawa Kurnunagela Sabaragamuwa Province Ayagama Ratnapura 16

Deraniyagala Kegalla

Bulathkohupitiya Kegalla

Dehiowita Kegalla

Imbulpe Ratnapura

Kolonna Ratnapura

Embilipitiya Ratnapura

Aranayaka Kegalla

Pelmadulla Ratnapura

Yatiyantota Kegalla

Balangoda Ratnapura Galigamuwa Kegalla Ruwanwella Kegalla Kahawatta Ratnapura Kegalle Kegalla Ratnapura Ratnapura

Southern Province Athuraliya Matara 22

Neluwa Galle

Kamburupitiya Matara

Thihagoda Matara

Pitabeddara Matara

Mulatiyana Matara

Suriyawewa Hambantota

Hakmana Matara

36 Appendix 1

Province Local Authorities District Total Number of Local (Pradeshiya Sabhas) Authorities Karandeniya Galle

Welivitiya Divitura Galle Imaduwa Galle

Katuwana Hambantota Lunugamvehara Hambantota Pasgoda Matara Akuressa Matara Nagoda Galle Hambantota Hambantota Tissamaharama Hambantota Malimbada Matara Kirinda Puhulwella Matara Kotapola Matara Thawalama Galle Central Province Laggala-Pallegama Matale 18

Nuwara-Eliya Walapane

Minipe Kandy

Ududumbara Kandy

Yatawaththa Matale

Panwila Kandy

Ambanganga Korale Matale

Thumpane Kandy

Naula Matale

Wilgamuwa Matale

Pathahewahata Kandy

Uda Palatha Kandy Ambagamuwa Nuwara-Eliya Medadumbara Kandy Harispattuwa Kandy Dambulla Matale Rattota Matale Gangawata Korale Kandy

37 Appendix 2

APPENDIX 2: LOCAL AUTHORITY AND SUBPROJECT SELECTION CRITERIA

A. Eligible Local Authority

1. Unless otherwise agreed by ADB, only local authorities listed in Appendix 1 will be eligible for financing under the project provided that such local authority has prepared and adopted a reform plan (as referred to in paragraph 3 of the PAM) and such reform plan has been reviewed and confirmed by the PMU.

B. Eligible Sectors

2. The eligible subsectors of the project are as follows:

(i) Environmental infrastructure – water supply and sanitation (including sewerage), drainage, and solid waste management (ii) Economic infrastructure – roads and bridges, including suspension bridges (iii) Public health infrastructure – maternity and health-care centers (iv) Other local authority facilities – public markets

3. Subprojects not listed in the above are generally not accepted, but may be approved under special circumstances if the needs are clearly justified.

C. Subproject Selection and Approval Process 4. The subproject selection will be an outcome of an inclusive planning process. Selection of subprojects will be made by the eligible local authorities through a council resolution. 5. The resolution will need to indicate: (i) Priority list of subprojects with a concept plan; (ii) Commitment to implement the reform plan with the final actions agreed upon; (iii) Initial forecast of local authority finances; and (iv) Request to the project management unit (PMU) for technical assistance required, if any, for preparation of feasibility studies and/or detailed design of subprojects (including safeguard documents).

6. The request from the local authorities comprising the four items mentioned above will be first submitted to the subproject coordination unit (SPCU) in their respective province for review. The SPCU will review and assess the request, confirm the coherence with the provincial physical development plan, and after necessary changes, submit its confirmation through chief secretary, to the PMU in the Ministry of Local Government and Provincial Councils (MLGPC) for further review. Upon receipt of the request, the PMU will review the request in accordance with the agreed criteria. Staff of the PMU and/or SPCU will visit respective local authority to see the local conditions and confirm the appropriateness of the plan before completing the review. The PMU will provide its recommendation to the Ministerial committee in the MLGPC chaired by Secretary, which is the final decision-making body. Only after the reform

38 Appendix 2

plan is reviewed and confirmed by the Ministerial committee, technical assistance for preparation of subprojects will be commenced.

7. When water supply and sewerage subprojects are included in the priority list, the PMU will initially screen the request to see who is appropriate to implement such subprojects and submit its recommendation to the Ministerial committee. If the Ministerial committee decides that the National Water Supply and Drainage Board (NWSDB) will be the appropriate implementing agency of the subprojects due to technical or other reasons, such subprojects will be dropped from the project.

8. Once the SPCUs find the feasibility studies and/or detailed engineering design of subprojects satisfactory, they will send a request to the respective local authority to endorse the project through council resolution. Once it is issued, the SPCU will request the PMU for final endorsement. When the detailed engineering design is prepared, the SPCU will send the entire set of documents to the PMU for the endorsement of the Ministerial committee.

D. General Subproject Selection Criteria

9. Subprojects will be identified on the basis of needs of the local communities, financial, economic, technical, environmental, and social feasibility and sustainability, and relevant government policy and strategy. The selection of subprojects will be made in terms of the following general criteria; the SPCUs will screen the subprojects and prepare a checklist to ensure the conformity with the criteria (both general and sector-specific) at the level of both feasibility studies and detailed designs, which will be confirmed and endorsed by the PMU. Only those subprojects that meet all the criteria set out below as a result of the detailed design will proceed to implementation.

(i) Priority requirement of community and link to development plan. The subproject should be in line with the priority requirements of the community at large and should address the basic infrastructure requirements of the local authority. This will be ascertained through on-site consultations with communities in accordance with the consultation and participation plan developed for the project, and may use participatory tools such as participatory rapid appraisal and participatory learning and action, which allow rapid assessment of community needs and priorities. The proposed subproject should be in conformity with a medium-term development plan and vision statement (if available), and/or regional/provincial development plans, as well as local development goals. Subproject integration with local and regional plans will ensure a balanced sustainable development of the region. (ii) Technical feasibility of the subproject. The subproject must be technically feasible and the least-cost solution alternative, taking into consideration the need to meet reasonable increases in demand. The equipment, material, and other resources as required can be acquired in or transferred to, the subproject location without unreasonable obstruction or delay. (iii) Financial state of the local authorities. The overall financial health of the local authorities will be assessed in terms of own revenue as a proportion of total revenue, and trend of dependence on provincial/national government. Revenue-generating capacity of existing projects, expenditures as a proportion of expenditure norms and other indicators of financial strength will be used to ensure sustainability of the proposed subproject. (iv) Quality control. Quality control in terms of quality of work and processes as well as quality of proposed output will be key criteria for subproject appraisal. Quality control techniques suggested by the local authorities during subproject design, construction, supervision, and operation will be closely Appendix 2 39

assessed. This is not only likely to minimize failures but also increase life and benefits of the proposed subproject. (v) Operation and maintenance (O&M). Inadequate budgetary allocation for O&M will result in physical neglect of a subproject. Fiscal capacity of the local authorities for effective O&M will be assessed to ensure the smooth flow of project benefits. (vi) Economic and financial returns. Evaluation of economic and/or financial returns from the subproject will be closely studied in accordance with relevant ADB guidelines. The findings will be evaluated vis-a-vis other criteria including environmental and social impact, etc. (vii) Environmental impact. An environmental assessment will be undertaken for all subprojects. SPCUs will undertake preliminary screening using rapid environmental assessment checklist ensuring compliance with specific environmental criteria for subproject selection. For subprojects having environmental impacts, an environmental assessment report will be prepared following the environmental assessment and review framework agreed upon between ADB and the government. (viii) Involuntary Resettlement. SPCUs and local authorities will screen involuntary resettlement impacts of proposed subprojects. Subprojects assessed to have significant resettlement impacts will not be undertaken. For subprojects having involuntary resettlement impacts, a resettlement plan will be prepared following the resettlement framework agreed upon between ADB and the government. (ix) Indigenous peoples. SPCUs and local authorities will screen indigenous peoples impacts of proposed subprojects. Subprojects assessed to have significant impacts on indigenous peoples will not be undertaken. Subprojects having indigenous impacts which: (i) involve commercial development of the cultural resources and knowledge of indigenous peoples, (ii) physical displacement from traditional or customary lands, and (iii) commercial development of natural resources within customary lands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual uses that define the identity and community of indigenous peoples will not be undertaken. For subprojects having indigenous peoples impacts, an indigenous peoples plan will be prepared following the indigenous peoples planning framework agreed upon between ADB and the government. (x) Gender. Local authorities will evaluate the impacts of proposed subprojects on gender issues based on the following principles: (i) maximum participation of women, especially those from poor/low-income households, in community- based decision making (quantitative targets may help); (ii) gender-equal responsibility in construction and O&M; (iii) consideration for women's time and space constraints and/or requirements; (iv) gender disaggregated data collection whenever possible; (v) use of gender responsive nongovernment and/or community-based organizations; and (vi) gender awareness among the local authority officials.

E. Sector-Specific Subproject Selection Criteria

10. This section outlines the broad sector-specific criteria as guidelines for the selection of subprojects.

11. Water Supply and Sanitation. The objectives should be to improve access to safe drinking water, improve sanitation, minimize water-borne diseases, and

40 Appendix 2

improve health conditions. The focus should be on areas with a large population with little or no access to safe drinking water. The following criteria will apply:

(i) The water resources board, the NWSDB and/or the consultants have carried out investigations, and have confirmed that potable water of sufficient quantity and quality is available, and the abstraction of water would not create adverse impacts to existing water users or the groundwater table, in both the short and long term. (ii) Specific measures have been proposed to mitigate adverse environmental impacts to be caused by additional amount of wastewater generated by the subproject. (iii) Connection costs and water tariff have been proposed to cover at least the full cost of O&M by taking into account the affordability of beneficiaries. (iv) For upgrading and augmentation of existing schemes, priority will be given for improving efficiencies. (v) The design of public sanitation facilities suits the requirements of women, children, and disabled. (vi) The water supply subproject has an economic internal rate of return (EIRR) of 12% or higher.

12. Local Authority Roads and Bridges. The objectives should be to improve access and to minimize travel time. The subprojects should be limited to local authority roads (class D and E) and other unclassified roads only. The following criteria will apply:

(i) Priority will be given to roads serving agricultural or fisheries activities that link villages to nearby market centers and townships, as identified by the communities and included in development plans. (ii) Roads to be improved should benefit a substantial proportion of population. (iii) Where possible, the scope of repairs is limited to existing road alignments, where no land acquisition is required. (iv) An arrangement for O&M budget allocation has been specified by the local authority. (v) The subproject has an EIRR of 12% or higher

13. Solid Waste Management. The objectives should be to improve collection, transportation, treatment, and safe disposal of the solid waste in the local authorities. The following criteria will apply:

(i) Improved collection, transportation, treatment, and disposal should benefit a substantial proportion of population. (ii) Activities promote public awareness of the population on household management of solid waste, with focus on reduce, reuse, and recycle (3R). (iii) Activities improve 3R activities such as organic waste composting. (iv) Activities demonstrate community involvement in selection of sites for safe disposal of solid waste, including acceptance of the site for disposal. (v) Where possible, state land should be selected for disposal of solid waste. (vi) The design of a final disposal site, if the construction/improvement is proposed under the project, meets the technical guidelines set out by the Central Environmental Authority.

14. Drainage Improvements. The objectives should be to improve collection, and safe disposal of the runoff and grey water in the local authorities. The following criteria will apply: Appendix 2 41

(i) Drainage system to be improved should benefit a substantial proportion of population. (ii) The design of the drainage system in the area to ensure that it would not create flooding in areas further to it upto the discharge point. (iii) The designs to be based on proper studies of runoff, contours and other required parameters

15. Public Health-Care Facilities. The objective is to improve public health-care services in the local authorities by improving or constructing relevant facilities. The following criteria will apply:

(i) Facilities improve maternity and child health in local authority areas. (ii) Coordination with the Ministry of Health and/or other relevant organizations has been made with regard to the allocation of medical staff, materials and other resources.

16. Bus Stands and Three-wheeler Parks. The objectives are to improve convenience of the public for the use of public transport and improve traffic management. The following criteria will apply:

(i) Facilities are prioritized for the township development, and the basic traffic survey confirms the need for the subproject.

(ii) An arrangement about the use of facilities, including collection of fees and other charges, has been agreed upon with operators or their associations.

17. Other Facilities. The objective is to rehabilitate or construct local authority facilities to improve service delivery. The following criteria will apply:

(i) For public markets, a survey has confirmed the need for the subproject based on the estimated number of stalls and their size. Financial projection needs to demonstrate the commitment of the local authority to sufficiently increase the revenue from operation of the markets. Plots should be allocated through competitive bidding to reflect the market rate of rents to optimize the revenue. Markets should have separate toilets for women and men. (ii) Other facilities may be approved under special circumstances only if the needs are clearly justified. This is subject to ADB’s prior approval. (iii) For buildings, a clear plan has been provided by the local authority as to how necessary furniture and equipment will be provided in the building, including its fund sources. Buildings should have separate toilets for women and men. (iv) Shops in buildings are not recommended. If proposed, a clear management plan should demonstrate the commitment of the local authority as to the optimization of rental income collection, by charging the market rate.

18. Funding: Each Pradeshiya Sabha would be eligible for a funding of a grant of 50 mn as per the policies laid down by MPCLG in the current project and all sub-projects are to be designed with in this amount. Water Supply subprojects can exceed this limit if required with prior approval of MPCLG / PMU which will be given based on availability of funds.

42 Appendix 2

19. ADB Review. The PMU will submit to ADB for review the proposal of the first two subprojects of each subsector, together with the checklist to demonstrate compliance with the selection criteria, when (i) feasibility studies are prepared, and (ii) detailed designs are prepared. Subsequently, ADB will review water supply and sewerage subprojects over SLR 40 million (excluding the VAT).

20. ADB shall not finance in respect of any subproject that fails to satisfy the selection criteria set out in this Appendix 2. Appendix 3 43

PROCUREMENT PLAN

Basic Data Project Name: Local Government Enhancement Sector Project Project Number: 42459-013 Approval Number: 2790 Country: Sri Lanka Executing Agency: Ministry of Provincial Councils & Local Government Project Procurement Classification: Implementing Agency: Project Procurement Risk: N/A Project Financing Amount: US$ 68,770,000 Project Closing Date: 31 December 2016 ADB Financing: US$ 59,000,000 Cofinancing (ADB Administered): Non-ADB Financing: US$ 9,770,000 Date of First Procurement Plan: 29 September Date of this Procurement Plan: 22 December 2015 2011

A. Methods, Thresholds, Review and 18-Month Procurement Plan

1. Procurement and Consulting Methods and Thresholds

Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold Comments International Competitive Bidding for Goods US$ 2,000,000 and Above Prior Review National Competitive Bidding for Goods Between US$ 100,000 and US$ The first two NCB packages 1,999,999 subject to prior review, thereafter post review. Shopping for Goods Up to US$ 99,999 The first two NCB packages subject to prior review, thereafter post review. International Competitive Bidding for Works US$ 15,000,000 and Above Prior review National Competitive Bidding for Works Between US$ 100,000 and US$ The first two NCB packages 14,999,999 subject to prior review, thereafter post review. Shopping for Works Up to US$ 99,999 The first two NCB packages subject to prior review, thereafter post review.

Consulting Services Method Comments Least-Cost Selection for Consulting Firm Prior review Quality- and Cost-Based Selection for Consulting Firm Prior review Individual Consultants Selection for Individual Consultant Prior review

2. Goods and Works Contracts Estimated to Cost $1 Million or More

The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.

44 Appendix 3

Advertisemen Review Package General Estimated Procurement Bidding t (Prior/ Comments Number Description Value Method Procedure Date Post) (quarter/year) PMU-VE- Procurement of 28 1,400,000.00 NCB Post 1S2E Q4 / 2015 Prequalification of 09 Compactors Bidders: N

Domestic Preference Applicable: N

Bidding Document: Goods

Comments: Bid document ready and being tendered

3. Consulting Services Contracts Estimated to Cost $100,000 or More

The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Review Advertisement Package General Estimated Recruitment Type of (Prior/ Date Comments Number Description Value Method Proposal Post) (quarter/year) DSC-SP- Design and 115,384.62 QCBS Prior Q1 / 2016 STP Assignment: National AT-01 Supervision Consultancy (Southern Province- Additional Towns [Pura Neguma]) Quality-Cost Ratio: 80:20

Comments: Southern Province-Additional Towns DSC- Design and 115,384.62 QCBS Prior Q1 / 2016 STP Assignment: National WP-AT- Supervision 01 Consultancy (Western Province- Additional Towns [Pura Neguma]) Quality-Cost Ratio: 80:20

Comments: Western Province-Additional Towns

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

The following table lists smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.

Appendix 3 45

Goods and Works Advertise Number Review ment Package General Estimated Procurement Bidding of (Prior/ Date Comments Number Value Method Procedure Description Contracts Post) (quarter/y ear) CP-NCB- WSS for CKD 430,769.23 1 NCB Post 1S2E Q4 / 2015 Prequalification of CKD-WS- Affected areas - Bidders: N 06 CP Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in progress CP-NCB- Furniture and 192,307.69 1 NCB Post 1S2E Q4 / 2015 Prequalification of FRN-01 Equipment for CP Bidders: N PMU Domestic Preference Applicable: N

Bidding Document: Goods

Comments: Requirement being workedout CP-NCB- Construction of 130,769.23 1 NCB Post 1S2E Q1 / 2016 Prequalification of WIL-29 Access Road with Bidders: N Bridge for Naminioya Domestic Preference Crematoria for Applicable: N Wilgamuwa PS

Bidding Document: Small Works

Comments: Designing in process NCP-NCB- WSS for CKD 182,307.69 1 NCB Post 1S2E Q4 / 2015 Prequalification of CKD-WS- Affected areas in Bidders: N 01A NCP-01A Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in process NCP-NCB- WSS for CKD 868,461.54 1 NCB Post 1S2E Q4 / 2015 Prequalification of CKD-WS- Affected areas in Bidders: N 01B NCP-01B

46 Appendix 3

Goods and Works Advertise Number Review ment Package General Estimated Procurement Bidding of (Prior/ Date Comments Number Value Method Procedure Description Contracts Post) (quarter/y ear)

Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in process NCP-NCB- WSS for CKD 353,846.15 1 NCB Post 1S2E Q4 / 2015 Prequalification of CKD-WS- affected areas - Bidders: N 02 NCP-P2 Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in progress NCP-NCB- WSS for CKD 238,461.54 1 NCB Post 1S2E Q4 / 2015 Prequalification of CKD-WS- Afected areas - Bidders: N 03 NCP-P3 Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in progress NCP-NCB- WSS for CKD 384,615.39 1 NCB Post 1S2E Q4 / 2015 Prequalification of CKD-WS- Affected areas in Bidders: N 04 NCP-04 Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in process NCP-NCB- Furniture and 192,307.69 1 NCB Post 1S2E Q4 / 2015 Prequalification of FRN-02 equipment for Bidders: N NCP PMU Domestic Preference Applicable: N Appendix 3 47

Goods and Works Advertise Number Review ment Package General Estimated Procurement Bidding of (Prior/ Date Comments Number Value Method Procedure Description Contracts Post) (quarter/y ear)

Bidding Document: Goods

Comments: Requirement being workedout NWP- WSS for CKD 426,923.08 1 NCB Post 1S2E Q4 / 2015 Prequalification of NCB-CKD- Affected areas in Bidders: N WS-05A NWP-05A Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in process NWP- WSS for CKD 196,923.08 1 NCB Post 1S2E Q4 / 2015 Prequalification of NCB-CKD- Affected areas in Bidders: N WS-05B NWP-05B Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in process NWP- Furniture and 153,846.15 1 NCB Post 1S2E Q4 / 2015 Prequalification of NCB-FRN- Equipment for Bidders: N 03 NWP PMU Domestic Preference Applicable: N

Bidding Document: Goods

Comments: Requirement being workedout NWP- Construction of 77,000.00 1 NCB Post 1S2E Q4 / 2015 Prequalification of NCB- Retain wall and Bidders: N RDM-22 access road to bus stand Domestic Preference Applicable: N

48 Appendix 3

Goods and Works Advertise Number Review ment Package General Estimated Procurement Bidding of (Prior/ Date Comments Number Value Method Procedure Description Contracts Post) (quarter/y ear)

Bidding Document: Small Works

Comments: Bid document under preparation PMU-EQ- Procurement of 26,923.08 1 NCB Post 1S2E Q4 / 2015 Prequalification of 08 Dot Matrix Printer Bidders: N for 108 Pradeshiya Domestic Preference Sabhas Applicable: N

Bidding Document: Goods

PMU-EQ- Procurement of 80,000.00 1 NCB Post 1S2E Q1 / 2016 Prequalification of 10 IT Hardware and Bidders: N Related Services for Pura Neguma Domestic Preference Management Applicable: N Centre

Bidding Document: Goods

Comments: Requirement being workedout PMU-VE- Vehicles for 723,076.92 1 NCB Post 1S2E Q1 / 2016 Prequalification of 13 SPCU & PMU Bidders: N

Domestic Preference Applicable: N

Bidding Document: Goods

Comments: Requirement being workedout SAB-NCB- Furniture and 192,307.69 1 NCB Post 1S2E Q4 / 2015 Prequalification of FRN-04 Equipment for Bidders: N SAB PMU Domestic Preference Applicable: N

Appendix 3 49

Goods and Works Advertise Number Review ment Package General Estimated Procurement Bidding of (Prior/ Date Comments Number Value Method Procedure Description Contracts Post) (quarter/y ear)

Bidding Document: Goods

Comments: Requirement being workedout SP-NCB- Furniture and 192,307.69 1 NCB Post 1S2E Q4 / 2015 Prequalification of FRN-05 Equipment for SP Bidders: N PMU Domestic Preference Applicable: N

Bidding Document: Goods

Comments: Requirement being workedout SP-NCB- Construction of 230,000.00 1 NCB Post 1S2E Q4 / 2015 Prequalification of IMA-30 Multipurpose Bidders: N building - Imaduwa Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Bid document under preparation UVA-NCB- Water Supply, 566,652.92 1 NCB Post 2S2E Q2 / 2015 Prequalification of BAN-13A Bandarawela - Bidders: N Part 1 Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Bid evaluation in progress UVA-NCB- Water Supply, 484,512.05 1 NCB Post 1S2E Q2 / 2015 Prequalification of BAN-13B Bandarawela - Bidders: N Part 2 Domestic Preference Applicable: N

50 Appendix 3

Comments: Bid evaluation in progress UVA-NCB- Water Supply, 484,512.05 1 NCB Post 1S2E Q2 / 2015 Prequalification of BAN-13C Bandarawela - Bidders: N Part 3 Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Bid evaluation in progress UVA-NCB- Water Supply, 484,512.05 1 NCB Post 1S2E Q2 / 2015 Prequalification of BAN-13D Bandarawela - Bidders: N Part 4 Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Bid evaluation in progress UVA-NCB- WSS for CKD 407,692.31 1 NCB Post 1S2E Q4 / 2015 Prequalification of CKD-WS- Affected areas in Bidders: N 07A Uva - Part A Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in process UVA-NCB- WSS for CKD 300,000.00 1 NCB Post 1S2E Q4 / 2015 Prequalification of CKD-WS- Affected areas in Bidders: N 07B Uva - Part B Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Designing in Appendix 3 51

Goods and Works Advertise Number Review ment Package General Estimated Procurement Bidding of (Prior/ Date Comments Number Value Method Procedure Description Contracts Post) (quarter/y ear) process UVA-NCB- Furniture and 292,307.69 1 NCB Post 1S2E Q4 / 2015 Prequalification of FRN-06 Equipment for Bidders: N UVA PMU Domestic Preference Applicable: N

Bidding Document: Goods

Comments: Requirement being workedout UVA-NCB- Construction of 250,000.00 1 NCB Post 1S2E Q4 / 2015 Prequalification of MEE-29 Access Road to Bidders: N Meeghakiula Busstand Domestic Preference Applicable: N

Bidding Document: Small Works

Comments: Bid document under preparation WP-NCB- Furniture and 153,846.15 1 NCB Post 1S2E Q4 / 2015 Prequalification of FRN-07 Equipment for Bidders: N WP PMU Domestic Preference Applicable: N

Bidding Document: Goods

Comments: Requirement being workedout CP SHO Survey for water 74,000.00 1 Shopping NA Shopping Q1 /2016 Prequalification of SUR 01 supply works - 1 bidders: N

Domestic Preference Applicable: N

Bidding document : Shopping document

Comments: Bid document under preparation @ 140 LKR = 1 US $

CP -SHO Survey for water 71,000.00 1 Shopping NA Shopping Q1 /2016 Prequalification of SUR 01 supply works - 2 bidders: N

Domestic Preference

52 Appendix 3

Bidding document : Shopping document

Comments: Bid document under preparation

@ 140 LKR = 1 US $

Consulting Services  Gen Review Advertisement Package Estimated Number of Recruitment Type of eral (Prior/ Date Comments Number Value Contracts Method Proposal Description Post) (quarter/year) None

B. Indicative List of Packages Required Under the Project

The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

Goods and Works Estimated Estimated Package General Procurement Review Bidding Value Number of Comments Number Description Method (Prior/Post) Procedure (cumulative) Contracts TBD- Provisional of 3,500,000.00 10 NCB Post 1S2E Prequalification Goods Goods of Bidders: N

Domestic Preference Applicable: N

Bidding Document: Goods

Lot 1: A 350,000.00

Lot 2: B 350,000.00

Lot 3: C 350,000.00

Lot 4: D 350,000.00

Appendix 3 53

Goods and Works Estimated Estimated Package General Procurement Review Bidding Value Number of Comments Number Description Method (Prior/Post) Procedure (cumulative) Contracts

Lot 5: E 350,000.00

Lot 6: F 350,000.00

Lot 7: G 350,000.00

Lot 8: H 350,000.00

Lot 9: I 350,000.00

Lot 10: J 350,000.00

TBD- Civil works in 7 3,500,000.00 10 NCB Post 1S2E Prequalification Works Province of Bidders: N

Domestic Preference Applicable: N

Bidding Document: Small Works

Lot 1: A 350,000.00

Lot 2: B 350,000.00

Lot 3: C 350,000.00

Lot 4: D 350,000.00

54 Appendix 3

Goods and Works Estimated Estimated Package General Procurement Review Bidding Value Number of Comments Number Description Method (Prior/Post) Procedure (cumulative) Contracts

Lot 5: E 350,000.00

Lot 6: F 350,000.00

Lot 7: G 350,000.00

Lot 8: H 350,000.00

Lot 9: I 350,000.00

 Lot 10: 350,000.00 J

Consulting Services Estimated Estimated Package General Recruitment Review Type of Value Number of Comments Number Description (Prior/Post) Proposal (cumulative) Contracts Method None

C. List of Awarded and On-going, and Completed Contracts

The following tables list the awarded and on-going contracts, and completed contracts.

1. Awarded and Ongoing Contracts

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award PMU-EQ-02 Procurement of 10,800 357,230.77 227,497.85 NCB Q3 / 2014 15-DEC-14 $1 @ LKR130/- New Compost Bins, for 108 PSs PMU-EQ-12 Home Composting Bins 357,230.77 245,292.92 NCB Q4 / 2014 31-AUG-15 $1 @ LKR130/- - Part 2 SP-NCB- Construction of Bus 109,666.09 111,859.41 NCB Q3 / 2013 20-DEC-13 $1 @ LKR130/- IMA-11 Stand & Comfort Centre, Imaduwa CP-NCB- Construction of Health 83,843.40 83,503.08 NCB Q2 / 2014 18-AUG-14 $1 @ LKR130/- PAN-14 Centre at Huluganga, Panvila Appendix 3 55

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award CP-NCB- Construction of 357,714.74 347,590.47 NCB Q2 / 2014 20-JUN-14 $1 @ LKR130/- AMB-04 Multipurpose Building, Ambanganga Korale CP-NCB- Construction of 396,315.70 373,076.92 NCB Q3 / 2013 25-NOV-13 $1 @ LKR130/- THU-19 Multipurpose building, Thumpane SP-NCB- Construction of the 134,665.93 129,659.56 NCB Q1 / 2014 02-JUL-14 $1 @ LKR130/- HAK-06 roads, Hakmana CP-NCB- Development of Internal 76,923.47 76,797.33 NCB Q2 / 2014 02-SEP-14 $1 @ LKR130/- WIL-25 Roads, Wilgamuwa CP-NCB- PS Building with 375,186.54 368,607.19 NCB Q3 / 2013 23-NOV-13 $1 @ LKR130/- DAM-01 Community Hall UVA-NCB- Bus stand with Comfort 162,215.80 68,912.79 NCB Q1 / 2014 04-AUG-14 $1 @ LKR130/- SIY-23 Centre, Siyambalanduwa UVA-NCB- Completion of 112,459.70 102,281.73 NCB Q2 / 2014 04-JUN-14 $1 @ LKR130/- HAL-08 Multipurpose Building, Haldummulla NCP-NCB- Completion of a 190,697.98 193,357.78 NCB Q1 / 2014 16-MAY-14 $1 @ LKR130/- KEB-13 Balance work of PS Building, Kebithigollewa SAB-NCB- Construcion of Multi- 360,285.84 393,929.53 NCB Q3 / 2014 17-NOV-14 $1 @ LKR130/- KOL-25 purpose building, Kolonna UVA-NCB- Construciton of Multi- 379,254.08 339,031.52 NCB Q2 / 2014 20-JUN-14 $1 @ LKR130/- BDL-03 purpose building, Badulla NCP-NCB- Construction of Agro 315,408.86 285,673.74 NCB Q4 / 2013 17-FEB-14 $1 @ LKR130/- WKD-23 Based Economic Centre, Welikanda NWP-NCB- Construction of Bus 105,939.81 97,766.97 NCB Q2 / 2014 22-SEP-14 $1 @ LKR130/- GIR-09 Stand and Drainage, Giribawa SP-NCB- Construction of Bus 311,059.59 279,155.72 NCB Q3 / 2014 09-DEC-14 $1 @ LKR130/- KAT-15 Stand at Kirana, Katuwana SP-NCB- Construction of Bus 423,720.38 384,615.38 NCB Q4 / 2013 23-JAN-14 $1 @ LKR130/- KAM-12 Stand, Kamburupitiya NWP-NCB- Construction of Bus 374,703.76 328,821.32 NCB Q1 / 2014 26-MAY-14 $1 @ LKR130/- MAW-14 Stand, Mawathagama UVA-NCB- Construction of Bus 191,744.17 175,003.95 NCB Q2 / 2014 04-AUG-14 $1 @ LKR130/- MEE-11 Stand, Meegahakivula NWP-NCB- Construction of Bus 354,042.90 282,474.82 NCB Q2 / 2014 17-JUN-14 $1 @ LKR130/- RID-18 stand and Multi-purpose building, Rideegama NWP-NCB- Construction of Bus 250,743.02 232,250.90 NCB Q1 / 2014 28-MAY-14 $1 @ LKR130/- CHI-07 stand and Public Toilets, Chilaw UVA-NCB- Construction of Bus 351,352.68 321,101.39 NCB Q1 / 2014 11-APR-14 $1 @ LKR130/- MDL-18 stand with Comfort Centre, Madulla SP-NCB- Construction of Bus 297,325.87 283,331.52 NCB Q1 / 2014 17-JUN-14 $1 @ LKR130/- KIR-16 stand with few shops, Kirinda

56 Appendix 3

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award NCP-NCB- Construction of Comfort 34,403.71 36,111.09 NCB Q3 / 2013 13-DEC-13 $1 @ LKR130/- CC-03 Center, Welikanda NCP-NCB- Construction of Comfort 88,720.89 88,914.86 NCB Q3 / 2013 20-NOV-13 $1 @ LKR130/- CC-02 Centre, Thirappane WP-NCB- Construction of Comfort 65,771.26 77,621.80 NCB Q4 / 2013 07-MAR-14 $1 @ LKR130/- PAL-01 centre, Palindanuwara NCP-NCB- Construction of 338,816.55 325,653.02 NCB Q1 / 2014 03-MAR-14 $1 @ LKR130/- THI-25 Community hall, Thirappane NCP-NCB- Construction of Confort 99,214.39 109,033.64 NCB Q3 / 2013 15-NOV-13 $1 @ LKR130/- CC-01 Center, Padaviya CP-NCB- Construction of 107,692.31 118,614.77 NCB Q2 / 2014 02-SEP-14 $1 @ LKR130/- WIL-26 Crematorium at Hettipola, Wilgamuwa UVA-NCB- Construction of 115,537.81 119,964.34 NCB Q2 / 2014 24-SEP-14 $1 @ LKR130/- WLW-26 Crematorium, Wellawaya CP-NCB- Construction of Internal 265,343.90 309,649.41 NCB Q4 / 2014 16-FEB-15 $1 @ LKR130/- MED-09 Roads at Theldeniya, Medadumbara UVA-NCB- Construction of Internal 341,925.73 285,862.04 NCB Q2 / 2014 25-AUG-14 $1 @ LKR130/- UPG-15 road at, Lunuwatta, Uva Paranagama NCP-NCB- Construction of Internal 169,293.92 136,706.42 NCB Q2 / 2014 25-AUG-14 $1 @ LKR130/- PAD-17 roads, Padaviya WP-NCB- Construction of Library 114,179.10 121,805.94 NCB Q1 / 2015 30-MAR-15 $1 @ LKR130/- AGA-04 Bldg., Agalawatta WP-NCB- Construction of Library 110,455.28 119,511.21 NCB Q3 / 2014 19-NOV-14 $1 @ LKR130/- MAD-10 Building Madurawala Pradeshiya Sabha NWP-NCB- Construction of Library 337,211.17 314,485.27 NCB Q2 / 2014 17-SEP-14 $1 @ LKR130/- ARA-05 Building and Weekly fair, Arachchikattuwa NWP-NCB- Construction of Library 157,915.93 152,664.51 NCB Q2 / 2014 07-AUG-14 $1 @ LKR130/- KAL-11 Building, Kalpitiya NWP-NCB- Construction of Library 143,766.84 138,168.78 NCB Q4 / 2013 03-MAR-14 $1 @ LKR130/- POL-16 Building, Polpithigama CP-NCB- Construction of Multi- 384,596.48 349,740.27 NCB Q2 / 2014 17-SEP-14 $1 @ LKR130/- GAN-05 Purpose Bldg, Gangawata Korale NWP-NCB- Construction of Multi- 201,416.00 188,699.75 NCB Q2 / 2014 22-SEP-14 $1 @ LKR130/- POL-17 Purpose Building with Public Toilets, Polpithigama WP-NCB- Construction of Multi- 403,892.66 390,286.37 NCB Q4 / 2013 10-JAN-14 $1 @ LKR130/- BIY-06 Purpose Building, Biyagama SAB-NCB- Construction of Multi- 363,243.18 365,798.07 NCB Q1 / 2014 08-APR-14 $1 @ LKR130/- ARN-01 pourpose building, Aranayaka WP-NCB- Construction of Multi- 199,814.10 171,695.27 NCB Q2 / 2014 09-SEP-14 $1 @ LKR130/- MAD-09 purpose Building at Anguruwathota, Madurawala Appendix 3 57

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award SP-NCB- Construction of Multi- 256,645.40 262,550.63 NCB Q2 / 2014 08-JUL-14 $1 @ LKR130/- KAR-13 purpose buiding, Karangeniya SAB-NCB- Construction of Multi- 349,012.59 349,131.67 NCB Q1 / 2014 11-APR-14 $1 @ LKR130/- PEL-26 purpose building, Pelmadulla WP-NCB- Construction of Multi- 179,702.77 179,684.39 NCB Q2 / 2014 03-SEP-14 $1 @ LKR130/- WLT-19 purpose building, Walallawita NCP-NCB- Construction of 339,972.12 314,527.63 NCB Q1 / 2014 21-APR-14 $1 @ LKR130/- IPA-12 Multipurpose Bldg., Ipalogama UVA-NCB- Construction of 380,164.89 366,941.25 NCB Q1 / 2014 26-MAR-14 $1 @ LKR130/- LNG-06 Multipurpose Bldg., Lunugala CP-NCB- Construction of 486,639.11 375,384.62 NCB Q4 / 2013 24-FEB-14 $1 @ LKR130/- MIN-11 Multipurpose Bldg., Minipe SAB-NCB- Construction of 350,973.18 346,718.31 NCB Q2 / 2014 05-SEP-14 $1 @ LKR130/- KEG-23 Multipurpose Bldg., Moronthota, Kegalla UVA-NCB- Construction of 336,363.07 305,295.40 NCB Q2 / 2014 17-JUN-14 $1 @ LKR130/- RDM-12 Multipurpose Building NCP-NCB- Construction of 262,472.37 246,480.38 NCB Q3 / 2014 08-SEP-14 $1 @ LKR130/- GAL-07 Multipurpose Building and Refurbishment, Galenbindunuwewa SP-NCB- Construction of 337,241.84 346,904.14 NCB Q3 / 2014 23-OCT-14 $1 @ LKR130/- KOT-17 Multipurpose Building, Kotapola NCP-NCB- Construction of 352,798.93 336,798.05 NCB Q1 / 2014 28-MAY-14 $1 @ LKR130/- PGL-19 Multipurpose Building, Palagala NWP-NCB- Construction of 383,427.89 356,610.60 NCB Q1 / 2014 01-APR-14 $1 @ LKR130/- UDU-19 Multipurpose Building, Udubaddawa CP-NCB- Construction of 350,181.88 326,947.05 NCB Q3 / 2014 01-DEC-14 $1 @ LKR130/- WLP-28 Multipurpose Building, Walapane SP-NCB- Construction of 346,179.86 376,923.33 NCB Q4 / 2014 14-JAN-15 $1 @ LKR130/- PIT-24 Multipurpose building with auditorium, Pitabeddara CP-NCB- Construction of 373,033.80 353,773.82 NCB Q2 / 2014 08-AUG-14 $1 @ LKR130/- NAU-12 Multipurpose building, Naula NCP-NCB- Construction of 138,259.86 133,569.34 NCB Q1 / 2014 28-MAY-14 $1 @ LKR130/- PAD-18 Multipurpose building, Padaviya NCP-NCB- Construction of 230,520.26 218,879.11 NCB Q1 / 2014 20-MAY-14 $1 @ LKR130/- RAM-22 Multipurpose building, Rambewa SP-NCB- Construction of 344,987.34 305,183.74 NCB Q1 / 2014 24-JUL-14 $1 @ LKR130/- WEL-29 Multipurpose building, Welivitiya, Divithura

58 Appendix 3

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award CP-NCB- Construction of PS 349,237.87 337,776.36 NCB Q2 / 2014 20-JUN-14 $1 @ LKR130/- YTW-27 Building Upper floor and Library, Yatawatta UVA-NCB- Construction of PS 390,987.66 380,417.68 NCB Q4 / 2013 03-MAR-14 $1 @ LKR130/- KTG-17 Building and Comfort Centre, Katharagama WP-NCB- Construction of PS 382,108.69 345,163.21 NCB Q4 / 2013 13-JAN-14 $1 @ LKR130/- DOD-08 Building, Dodangoda CP-NCB- Construction of PS 371,977.86 353,377.27 NCB Q2 / 2014 02-SEP-14 $1 @ LKR130/- HAR-06 Building, Harispattuwa SP-NCB- Construction of PS 367,330.75 371,155.49 NCB Q4 / 2013 07-JAN-14 $1 @ LKR130/- PAS-23 Building, Pasgoda NWP-NCB- Construction of PS 198,221.24 182,904.62 NCB Q3 / 2013 27-NOV-13 $1 @ LKR130/- VAN-20 Office UVA-NCB- Construction of PS 359,965.96 338,542.55 NCB Q2 / 2014 18-AUG-14 $1 @ LKR130/- KAN-05 Office Building with a Library, Kandaketiya UVA-NCB- Construction of PS 250,553.94 236,660.30 NCB Q4 / 2013 03-MAR-14 $1 @ LKR130/- WLW-25 Office building, Wellawaya NWP-NCB- Construction of PS 331,690.69 298,587.83 NCB Q1 / 2014 17-JUN-14 $1 @ LKR130/- KUL-13 Office with Library and Health Centre, Kuliyapitiya UVA-NCB- Construction of PS 261,859.44 269,015.50 NCB Q2 / 2013 02-SEP-13 $1 @ LKR130/- HAL-01 Office, Haldummulla UVA-NCB- Construction of PS 278,880.80 284,212.92 NCB Q3 / 2013 06-DEC-13 $1 @ LKR130/- HAP-09 Office, Haputale NWP-NCB- Construction of PS 215,906.68 200,884.11 NCB Q2 / 2014 17-SEP-14 $1 @ LKR130/- KAL-12 Office, Kalpitiya SP-NCB- Construction of PS 464,619.83 475,362.06 NCB Q3 / 2013 20-DEC-13 $1 @ LKR130/- MUL-19 Office, Weekly fair, (ADB Fin. Mulatiyana LKR42,000,000) UVA-NCB- Construction of PS 300,192.40 315,211.17 NCB Q3 / 2013 05-DEC-13 $1 @ LKR130/- SIY-22 Office,Siyambalanduwa UVA-NCB- Construction of 290,714.26 275,813.93 NCB Q2 / 2014 02-SEP-14 $1 @ LKR130/- BAN-04 Pradeshiya Sabha Office Building, Bandarawela SAB-NCB- Construction of 361,712.25 330,713.71 NCB Q2 / 2014 15-AUG-14 $1 @ LKR130/- RTP-27 Pradeshiya Sabha Office Building, Ratnapura UVA-NCB- Construction of 384,159.99 332,064.39 NCB Q3 / 2014 22-OCT-14 $1 @ LKR130/- THA-24 Pradeshiya Sabha Office Building, Thanamalvila SP-NCB- Construction of 353,323.68 321,057.12 NCB Q3 / 2014 28-NOV-14 $1 @ LKR130/- MAL-18 Pradeshiya Sabha Office, Malimbada SP-NCB- Construction of 267,104.36 261,843.11 NCB Q2 / 2014 07-AUG-14 $1 @ LKR130/- AKU-02 Pradeshiya Sabha, Akuressa SP-NCB- Construction of 439,878.77 486,796.41 NCB Q4 / 2014 14-JAN-15 $1 @ LKR130/- HAM-08 Appendix 3 59

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award Pradeshiya Sabha, Bellagaswewa, Hambantota UVA-NCB- Construction of Road, 53,503.04 52,240.49 NCB Q2 / 2014 17-SEP-14 $1 @ LKR130/- MDL-19 Drain & Pavement, Makulla, Madulla CP-NCB- Construction of WSS, 427,613.87 455,721.09 NCB Q4 / 2014 18-FEB-15 $1 @ LKR130/- LAG-13 Laggala-Pallegama CP-NCB- Construction of WSS, 292,282.28 304,434.93 NCB Q4 / 2014 12-FEB-15 $1 @ LKR130/- UPT-22-P2 Udapalatha CP-NCB- Construction of WSS, 460,267.93 446,257.77 NCB Q4 / 2014 12-FEB-15 $1 @ LKR130/- UPT-22-P3 Udapalatha NCP-NCB- Construction of Water 322,873.04 338,988.72 NCB Q3 / 2014 02-DEC-14 $1 @ LKR130/- GAL-08 Supply Scheme for Galenbindunuwewa NCP-NCB- Construction of Weekly 269,541.75 235,934.35 NCB Q3 / 2014 08-SEP-14 $1 @ LKR130/- LAN-15 Fair, Bus stand, Lankapura SAB-NCB- Construction of Weekly 209,552.12 229,834.20 NCB Q1 / 2014 05-JUN-14 $1 @ LKR130/- GLG-17 Fair, Health Clinic, Galigamuwa NWP-NCB- Construction of Weekly 120,308.38 106,401.59 NCB Q1 / 2014 30-JUN-14 $1 @ LKR130/- CHI-08 fair at Madampe,Chilaw NCP-NCB- Construction of Weekly 141,770.91 130,674.70 NCB Q4 / 2013 03-FEB-14 $1 @ LKR130/- GLN-09 fair, Galnewa CP-NCB- Construction of Weekly 219,035.55 206,834.09 NCB Q3 / 2014 21-NOV-14 $1 @ LKR130/- LAG-08 fair, Public Toilet, Internal roads, Laggala- Pallegama PS SAB-NCB- Construction of a Mult- 293,154.78 271,563.77 NCB Q3 / 2014 22-OCT-14 $1 @ LKR130/- IMB-20 purpose building, Imbulpe SAB-NCB- Construction of a Multi- 345,059.52 338,440.33 NCB Q2 / 2014 10-JUL-14 $1 @ LKR130/- DER-11 purpose building, Deraniyagala UVA-NCB- Construction of a PS 271,402.85 258,182.01 NCB Q2 / 2014 02-SEP-14 $1 @ LKR130/- BAD-16 Sub Office, Badalkumbura SAB-NCB- Construction of a bus 275,667.29 266,592.75 NCB Q2 / 2014 15-AUG-14 $1 @ LKR130/- AYA-04 stand with community hall, Ayagama NWP-NCB- Construction of daily 143,430.66 139,505.06 NCB Q1 / 2013 23-MAY-14 $1 @ LKR130/- BIN-06 fair, Bingiriya CP-NCB- Construction of library, 288,115.93 287,187.09 NCB Q1 / 2014 05-JUN-14 $1 @ LKR130/- UDA-20 health centre, Udadumbara NCP-NCB- Construction of 351,018.72 295,705.49 NCB Q1 / 2014 22-MAY-14 $1 @ LKR130/- HOR-11 multipurpose building, Horowpathana SAB-NCB- Construction of the 230,090.40 227,260.19 NCB Q4 / 2014 18-DEC-14 $1 @ LKR130/- BUL-08 Multipurpose Building, Bulathkohupitiya WP-NCB- Construction of the 305,247.16 282,297.53 NCB Q1 / 2014 17-JUN-14 $1 @ LKR130/- SEE-17 second phase of the PS

60 Appendix 3

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award Office, Seethawaka NCP-NCB- Construction of the 283,874.95 281,673.32 NCB Q2 / 2014 20-JUN-14 $1 @ LKR130/- RAJ-20 weekly fair and Drainage, Rajanganaya SP-NCB- Construction of the 311,074.20 341,869.26 NCB Q2 / 2014 10-JUL-14 $1 @ LKR130/- THG-26 weekly fair, Thihagoda CP-NCB- Construction of water 361,881.80 347,298.54 NCB Q4 / 2014 18-FEB-15 $1 @ LKR130/- WIL-24 supply scheme at Hettipola, Wilgamuwa CP-NCB- Construction of water 227,095.09 228,594.21 NCB Q3 / 2014 03-DEC-14 $1 @ LKR130/- RAT-16 supply scheme, Rattota WP-NCB- Construction of weekly 212,655.12 199,935.85 NCB Q4 / 2013 08-JAN-14 $1 @ LKR130/- WLT-18 fair and confort centre, Walallawita SP-NCB- Construction of weekly 363,458.52 379,184.62 NCB Q3 / 2014 06-JAN-15 $1 @ LKR130/- NAG-20 fair and multipurpose building, Nagoda SAB-NCB- Construction of weekly 242,258.77 237,249.18 NCB Q1 / 2014 20-MAY-14 $1 @ LKR130/- EMB-15 fair and toilets, Embilipitiya SP-NCB- Construction of weekly 175,715.47 187,096.62 NCB Q2 / 2014 12-AUG-14 $1 @ LKR130/- ATH-05 fair at Thibbotuwewa, Thuraliya NCP-NCB- Construction of weekly 131,103.39 122,874.33 NCB Q2 / 2014 25-AUG-14 $1 @ LKR130/- DIM-06 fair with toilet facility, Dimbulagala NCP-NCB- Construction of weekly 137,621.95 129,429.39 NCB Q1 / 2014 16-MAY-14 $1 @ LKR130/- RAM-24 fair with toilet facility, Rambewa SAB-NCB- Construction of weekly 349,012.59 75,547.77 NCB Q4 / 2013 24-FEB-14 $1 @ LKR130/- AYA-03 fair, Ayagama NCP-NCB- Construction of weekly 114,492.27 111,158.71 NCB Q1 / 2014 23-MAY-14 $1 @ LKR130/- KEB-14 fair, Kebithigollewa UVA-NCB- Construction of weekly 125,107.78 155,803.63 NCB Q1 / 2014 09-APR-14 $1 @ LKR130/- MEE-28 fair, Meegahakivula SP-NCB- Construction of weekly 358,495.38 384,615.38 NCB Q4 / 2013 03-FEB-14 $1 @ LKR130/- TMR-27 fair, Thissamaharama WP-NCB- Construction of weekly 384,775.07 355,524.25 NCB Q1 / 2014 23-MAY-14 $1 @ LKR130/- MAT-13 fair, comfort centre, Mathugama SAB-NCB- Construction of weekly 323,052.04 371,281.82 NCB Q1 / 2014 20-MAY-14 $1 @ LKR130/- KAH-22 fair,Drainage system, Kahawatta UVA-NCB- Consturction of Road, 59,776.81 59,779.81 NCB Q4 / 2014 22-JAN-15 $1 @ LKR130/- HAP-10 Retaining wall & Pavement Improvement, Haputale SP-NCB- Development of Internal 56,286.60 59,076.57 NCB Q4 / 2014 06-JAN-15 $1 @ LKR130/- NEL-22 Roads and Three wheeler park, Neluwa CP-NCB- Development of Internal 319,190.88 297,149.37 NCB Q2 / 2014 09-SEP-14 $1 @ LKR130/- AMG-02 Roads, Ambagamuwa WP-NCB- Improvement of Internal 239,029.69 215,948.29 NCB Q3 / 2014 04-NOV-14 $1 @ LKR130/- PAL-15 Road at Baduraliya, Appendix 3 61

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award Palindanuwara NCP-NCB- Improvement of Internal 75,559.32 71,920.08 NCB Q2 / 2014 25-AUG-14 $1 @ LKR130/- LAN-16 Roads, Lankapura NWP-NCB- Improvement of Roads 367,255.75 287,187.73 NCB Q2 / 2014 22-SEP-14 $1 @ LKR130/- ALA-04 at Alawwa Town, Alawwa SAB-NCB- Improvement of the 353,581.16 230,244.64 NCB Q3 / 2014 02-DEC-14 $1 @ LKR130/- DEH-10 Drainage system, Dehiovita CP-NCB- Improvement to Existing 370,663.27 395,983.43 NCB Q4 / 2014 23-FEB-15 $1 @ LKR130/- UDA-21 water supply scheme, Udadumbara UVA-NCB- Improvement to Weekly 117,125.24 102,982.55 NCB Q2 / 2014 04-AUG-14 $1 @ LKR130/- MDG-02 fair with retaining wall, Medagama SP-NCB- Improvement to existing 250,168.69 261,153.85 NCB Q4 / 2013 03-MAR-14 $1 @ LKR130/- IMA-10 shops, Imaduwa SP-NCB- Improvement to weekly 318,236.42 349,920.72 NCB Q4 / 2014 30-JAN-15 $1 @ LKR130/- SOO-25 fair and entrance roads, Sooriyawewa SAB-NCB- Improvements to the 160,928.10 151,990.89 NCB Q2 / 2014 18-AUG-14 $1 @ LKR130/- BUL-09 Internal roads, Bulathkohupitiya NWP-NCB- Improvements to weekly 342,091.49 308,141.25 NCB Q2 / 2014 04-AUG-14 $1 @ LKR130/- NAW-15 fair and drainage system, Nawagattegama WP-NCB- PS Office Building, 443,913.53 419,964.26 NCB Q3 / 2013 27-AUG-13 $1 @ LKR130/- DIV-03 Divulapitiya NWP-NCB- PS Office Building, 248,159.96 220,495.53 NCB Q2 / 2013 02-SEP-13 $1 @ LKR130/- GIR-03 Giribawa SP-NCB- PS Office Building, 376,639.83 351,901.29 NCB Q2 / 2013 16-AUG-13 $1 @ LKR130/- LUN-01 Lunugamvehera SAB-NCB- PS Office Building, 383,579.94 387,714.36 NCB Q3 / 2013 04-NOV-13 $1 @ LKR130/- RUW-28 Ruwanwella SP-NCB- PS Office Building, 301,937.48 320,000.00 NCB Q1 / 2014 02-JUL-14 $1 @ LKR130/- NEL-21 Weekly fair, Neluwa SAB-NCB- PS Office and Library - 26,865.67 27,437.76 NCB Q1 / 2015 30-MAR-15 $1 @ LKR130/- EMB-14 Embilipitiya WP-NCB- PS Sub Office & Library 182,500.84 166,692.43 NCB Q2 / 2013 16-AUG-13 $1 @ LKR130/- MIR-02 Building, Pallewelaa SAB-NCB- Rehabilitation of 77,494.37 76,078.85 NCB Q2 / 2014 02-SEP-14 $1 @ LKR130/- GLG-19 Ahakiyatha Road, Galigamuwa SAB-NCB- Rehabilitation of 88,762.83 93,250.55 NCB Q2 / 2014 25-AUG-14 $1 @ LKR130/- EMB-16 Danduhathakma- Kaparalla Rd, Embilipitiya SAB-NCB- Rehabilitation of 43,972.85 46,175.05 NCB Q3 / 2014 05-DEC-14 $1 @ LKR130/- DER-13 Pavement and Drainage System, Deraniyagala SAB-NCB- Rehabilitation of 84,568.59 88,490.77 NCB Q4 / 2014 10-FEB-15 $1 @ LKR130/- IMB-21 Samanalagama Rd, Imbulpe

62 Appendix 3

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award SP-NCB- Rehabilitation of 78,427.65 90,090.05 NCB Q3 / 2014 02-DEC-14 $1 @ LKR130/- ATH-04 existing suspension bridge, Thibbotuwawa, Athuraliya NWP-NCB- Vanathavilluwa Water 564,118.00 453,502.23 NCB Q4 / 2014 22-JUN-15 $1 @ LKR130/- VAN-21 Supply Scheme WP-NCB- Waste Management 242,388.06 201,018.94 NCB Q1 / 2015 20-MAY-15 $1 @ LKR130/- AGA-05 Centre, Agalawatta CP-NCB- Water Supply Scheme 622,119.00 541,169.02 NCB Q4 / 2014 26-MAY-15 $1 @ LKR130/- UPT-22-P1 (Intake and Raw Water Main) for Udapalatha PS-Part 1 NCP-NCB- Water Supply Scheme 170,036.01 166,315.84 NCB Q4 / 2014 09-JAN-15 $1 @ LKR130/- DIM-04A for Dimbulagala NCP-NCB- Water Supply Scheme 257,710.97 240,801.64 NCB Q4 / 2014 09-JAN-15 $1 @ LKR130/- DIM-04B for Dimbulagala PS, Dimbulagala NCP-NCB- Water Supply Scheme 301,992.62 324,556.71 NCB Q2 / 2014 22-JAN-15 $1 @ LKR130/- GLN-10 for Galnewa NCP-NCB- Water Supply Scheme 157,409.51 161,974.60 NCB Q3 / 2014 19-DEC-14 $1 @ LKR130/- RAJ-21 for Rajangane Town, Rajanganaya WP-NCB- Water Supply, 197,835.82 193,381.18 NCB Q1 / 2015 30-MAR-15 $1 @ LKR130/- MAD-11 Madurawala WP-NCB- Water Supply, Mirigama 183,283.58 187,252.42 NCB Q1 / 2015 30-MAR-15 $1 @ LKR130/- MIR-16 WP-NCB- Water Supply, 196,044.78 200,307.87 NCB Q1 / 2015 16-MAR-15 $1 @ LKR130/- PAL-14 Palindanuwara NCP-NCB- Water Sypply Scheme 274,426.95 258,560.97 NCB Q4 / 2014 08-JAN-15 $1 @ LKR130/- DIM-04C for Dimbulagala SAB-NCB- Weekly Fair and 359,134.21 326,669.52 NCB Q3 / 2014 19-NOV-14 $1 @ LKR130/- YAT-29 Comfort Centre - Yatiyantota NWP-NCB- Weekly Fair and 60,281.71 59,518.54 NCB Q1 / 2014 31-MAR-14 $1 @ LKR130/- GIR-10 Comfort Centre, Giribawa SP-NCB- Compost Plant - 27,360.54 30,105.42 NCB Q1 / 2015 14-JUL-15 $1 @ LKR130/- HAM-09 Hambantota SAB-NCB- Compost Plant, 77,351.68 70,750.73 NCB Q1 / 2015 12-JUN-15 $1 @ LKR130/- BAL-07 Balangoda SAB-NCB- Compost Plant, 67,800.00 65,911.64 NCB Q1 / 2015 09-JUN-15 $1 @ LKR130/- GLG-18 Galigamuwa UVA-NCB- Construction of Library 197,598.80 189,254.16 NCB Q2 / 2013 13-NOV-13 $1 @ LKR130/- MDG-20 Building, Medagama SAB-NCB- Construction of 278,134.72 272,330.91 NCB Q4 / 2014 12-FEB-15 $1 @ LKR130/- BAL-05 Multipurpose Bldg. and Pre-school, Balangoda CP-NCB- Multipurpose Building, 353,460.53 353,460.51 NCB Q3 / 2014 10-JUL-15 $1 @ LKR130/- PAT-15 PS Office and Library - Pathahewaheta PS UVA-NCB- Road Improvement, 88,463.53 98,679.70 NCB Q1 / 2015 30-MAR-15 $1 @ LKR130/- BAD-21 Badalkumbura SP-NCB- Water Supply Scheme, 544,463.82 559,890.74 NCB Q1 / 2015 12-JUN-15 $1 @ LKR130/- HAK-07 Hakmana Appendix 3 63

Goods and Works Date of Advertisemen Awarded Procuremen ADB Package Estimated t General Description Contract t Approval of Comments Number Value Date Value Method Contract (quarter/year) Award SP-NCB- Weekly Fair busstand, 401,538.46 354,043.92 NCB Q1 / 2015 13-AUG-15 $1 @ LKR130/- TWM-28 PS office and toilet, Thawalama

Consulting Services Packag Awarded Advertisement Date of ADB Estimated Recruitme e General Description Contract Date Approval of Comments Value nt Method Number Value (quarter/year) Contract Award DSC02 Design and Supervision 310,000.00 576,911.17 QCBS Q1 / 2013 16-OCT-13 $1 @ LKR130/- Consultants - North (LKR74,998,452.5 Central Province (DSC 5) 02) DSC03 Design and Supervision 200,000.00 453,586.53 QCBS Q1 / 2013 22-OCT-13 $1 @ LKR130/- Consultants - North (LKR58,966,249.1 Central Province (DSC 0) 03) DSC04 Design and Supervision 370,000.00 470,174.98 QCBS Q1 / 2013 16-OCT-13 $1 @ LKR130/- Consultants - (LKR61,122,746.9 Sabaragamuwal 0) Province (DSC 04) DSC05 Design and Supervision 320,000.00 324,737.58 QCBS Q1 / 2013 15-OCT-13 $1 @ LKR130/- Consultants - Southern (LKR42,215,886.0 Province (DSC 05) 0) DSC06 Design and Supervision 240,000.00 648,132.32 QCBS Q1 / 2013 09-OCT-13 $1 @ LKR130/- Consultants - Uva (LKR84,257,201.2 Province (DSC 06) 8) DSC 07 Design and Supervision 70,000.00 78,997.81 LCS Q1 / 2013 10-SEP-13 $1 @ LKR130/- Consultants - Western (LKR10,269,715.0 Province (DSC 07) 0) DSC01 Design and Supervision 400,000.00 614,466.39 QCBS Q1 / 2013 16-OCT-13 $1 @ LKR130/- of consultants - Central (LKR79,880,631.2 Province (DSC 01) 0) PMC-01 Project Management 1,640,000.00 1,814,794,2 QCBS Q1 / 2012 03-AUG-12 $1 @ LKR130/- Consultant 44.00 (LKR117,589,159. 28&$910,262.25)

2. Completed Contracts

Goods and Works Advertisemen Date of ADB Awarded Procuremen Date of Package General Estimated t Approval of Contract t Completio Comments Number Description Value Date Contract Value Method n (quarter/year) Award NWP-NCB- Construction of PS 213,846.1 212,135.6 NCB Q1 / 2013 06-AUG-13 09-APR-14 $1 @ LKR130/- BIN-01 Office - Bingiriya 5 6 (LKR27,577,635.72 (PCSS5) ) CP-NCB- Construction of 300,000.0 289,303.4 NCB Q1 / 2013 21-JUN-13 05-MAY-14 $1 @ LKR130/- PAN-07 Huluganga 0 7 (LKR37,609,451.40 Bridge(PCSS7) ) SP-NCB- Improvement of 30,063.05 18,031.11 NCB Q3 / 2013 20-NOV-13 06-JUN-14 $1 @ LKR130/- KAR-14 Comfort Center, (LKR2,344,044.58) Karandeniya UVA-NCB- Construction of 37,483.58 33,798.17 NCB Q1 / 2014 27-MAR-14 30-AUG-14 $1 @ LKR130/- RDM-14 weekly fair,

64 Appendix 3

Goods and Works Advertisemen Date of ADB Awarded Procuremen Date of Package General Estimated t Approval of Contract t Completio Comments Number Description Value Date Contract Value Method n (quarter/year) Award Rideemaliyadda (LKR4,613,959.50) UVA-NCB- Construction of 34,489.76 28,913.75 NCB Q3 / 2013 14-NOV-13 03-SEP-14 $1 @ LKR130/- MEE-07 Comfort Center, (LKR3,758,787.84) Meegahakivula PMU-EQ-11 Procurement of 304,615.3 312,276.5 NCB Q1 / 2014 21-APR-14 15-NOV-14 $1 @ LKR130/- 306 Unit Desktop 8 5 (LKR40,595,952.00 computers ) CP-NCB- Construction of 53,941.68 53,551.70 NCB Q1 / 2014 27-MAR-14 03-DEC-14 $1 @ LKR130/- AMG-03 Comfort Centre, (LKR6,961,721.49) Ambagamuwa UVA-NCB- Comfort Centre, 28,672.85 23,793.19 NCB Q3 / 2013 03-OCT-13 18-DEC-14 $1 @ LKR130/- MDG-27 Medagama (LKR3,093,115.18) CP-NCB- Construction of 123,061.4 119,093.3 NCB Q1 / 2014 27-MAR-14 22-JAN-15 $1 @ LKR130/- RAT-17 Health and 0 7 (LKR15,482,137.87 Maternity Centre, ) Rattota CP-NCB- Construction of 102,307.6 87,240.97 NCB Q1 / 2014 27-MAR-14 11-FEB-15 $1 @ LKR130/- WIL-23 Community Centre 9 (LKR11,341,325.86 on PS Office, ) Wilgamuwa CP-NCB- Development of 100,000.0 92,807.16 NCB Q1 / 2014 17-JUN-14 17-MAR-15 $1 @ LKR130/- RAT-18 Weekly Fair, 0 (LKR12,064,930.55 Rattota ) PMU-VE- Solid Waste 400,000.0 375,235.3 NCB Q1 / 2013 17-MAY-13 28-JUN-13 $1 @ LKR130/- EQ-01 Managment -31 0 9 (LKR48,780,600) Nos 4-wheel tractors, other tractors and trailers (PCSS2) PMU-VE-03 Solid Waste 90,000.00 56,538.46 SHOPPING Q1 / 2013 19-AUG-13 20-AUG-13 $1 @ LKR130/- Management - (LKR7,350,000.00) Procurement of Gully Bowsers PMU-VE-04 Solid Waste 390,000.0 371,600.2 NCB Q1 / 2013 03-JUL-13 12-SEP-13 $1 @ LKR130/- Management - 0 8 (LKR48,308,036.00 Procurement of ) Tippers PMU-VE-05 Truck Mounted 110,000.0 111,689.8 NCB Q1 / 2013 17-MAY-13 28-NOV-13 $1 @ LKR130/- Water Bowser 0 5 (LKR14,519,680.00 (PCSS3) ) PMU-EQ-06 Procurement of 69,230.77 65,752.57 NCB Q3 / 2013 27-NOV-13 31-MAR-14 $1 @ LKR130/- Office Equip. for (LKR8,547,833.93) PMU PMU-EQ-07 Procurement of 30,769.23 30,140.62 NCB Q3 / 2013 13-DEC-13 05-APR-14 $1 @ LKR130/- Office Equipment (LKR3,918,280.00) for PMU

Consulting Services Date of ADB Awarded Advertisement Date of Package General Estimated Recruitment Approval of Contract Date Completio Comments Number Description Value Method Contract Value (quarter/year) n Award None

Appendix 3 65

D. National Competitive Bidding

A. Regulation and Reference Documents

1. The procedures to be followed for national competitive bidding shall conform to the provisions prescribed in the Procurement Guidelines 2006 for Goods and Works issued in January 2006 by the National Procurement Agency, and the specific procedures prescribed by the Procurement Manual issued in March 2006, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines.

B. Procurement Procedures

1. Eligibility

2. The eligibility of bidders shall be as defined under Section I of ADB’s Procurement Guidelines (2015, as amended from time to time) (the “Guidelines); accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in Section I of the Guidelines.

2. Registration and Sanctioning

3. Registration is acceptable under the following conditions:

(i) Bidding shall not be restricted to pre-registered firms under the national registration system of the Institute for Construction, Training and Development (ICTAD), and such registration shall not be a condition for the submission of bids in the bidding process.

(ii) Where registration is required prior to award of contract, bidders: (i) shall be allowed a reasonable time to complete the ICTAD registration process; and (ii) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

(iii) National sanction lists or blacklists may be applied only with prior approval of ADB.

3. Prequalification

4. Prequalification is discouraged for NCB. When used, particularly for works contracts, an individual prequalification exercise is acceptable for each contract as is the use of a registration system (or approved standing list) of contractors based on criteria such as experience, financial capacity, and technical capacity. Foreign bidders from eligible countries must, however, be allowed to register and to bid without unreasonable cost or additional requirements.

4. Advertising

5. The posting of NCB specific notices for contracts valued at less than $1 million on ADB’s website is not required but is highly recommended.

5. Preferences

6. The following shall be observed:

(i) No preference of any kind shall be given to domestic bidders or for domestically manufactured goods.

(ii) Foreign suppliers and contractors from ADB member countries shall be allowed to bid,

66 Appendix 3

without registration, licensing, and other government authorizations, leaving compliance with these requirements for after award and before signing of contract.

6. Participation by Government-Owned Enterprises

7. Government-owned enterprises in the Democratic Socialist Republic of Sri Lanka shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity, or the Project Executing Agency or Implementing Agency.

7. Rejection of Bids and Rebidding

8. Bids shall not be subjected to a test for unrealistic rates. No lowest evaluated and substantially responsive bid shall be rejected on the basis of comparison to rates, including but not limited to market, historical, or agency established rates, without prior approval of ADB.

9. Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence.

8. Price Negotiations

10. Price negotiation shall be allowed only where the price offered by the lowest evaluated and substantially responsive bidder substantially exceeds costs estimates. Approval of ADB is required prior to any negotiation of prices.

C. Bidding Documents

9. Acceptable Bidding Documents

11. Procuring entities shall use standard bidding documents acceptable to ADB for the Procurement of Goods, Works and Consulting Services, based ideally on the standard bidding documents issued by ADB.

10. Bid Security

12. Where required, bid security shall be in the form of a certified check, a letter of credit or a bank guarantee from a reputable bank.

11. ADB Policy Clauses

13. A provision shall be included in all NCB works and goods contracts financed by ADB requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB.

14. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question.

15. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices or any integrity violation in competing for, or in executing, ADB-financed contract.

67 Appendix 4

TERMS OF REFERENCE FOR CONSULTING SERVICES

I. Project Management Consultant (PMC)

A. Overview

1. The Project Management Unit (PMU) in the Ministry of Local Government and Provincial Councils (MLGPC) and the Sub-Project Coordination Units (SPCUs) in the 7 Provinces will be provided with necessary consulting services under the loan to strengthen their project management and implementation capability including engineering design and construction supervision. A Project Management Consultant (PMC) comprising international and national consultants will be located in Colombo to assist the PMU in project management activities including reviewing engineering designs, procurement, implementation and capacity building. The PMC will also assist the PMU and the SPCUs in project formulation, management, monitoring and evaluation, financial and environmental management aspects, information technology and capacity building. In addition the PMC would be responsible for project performance and management system (PPMS) which includes generating baseline data and will be monitored to assess impact of the Project and assess the benefits on commissioning of the Project.

2. Seven national sector specific Design and Supervision Consultant (DSC) firms will be provided separately to SPCUs in the respective provinces to undertake detailed engineering design, preparation of construction drawings and bidding documents, procurement activities, construction supervision, quality control and other activities associated with the Project.

3. The consultant firms for the above packages will be selected in accordance with the latest procedure and guidelines set by the Asian Development Bank.

B. Project Management Consultant (PMC)

1. Objectives of PMC

4. The primary objectives of the PMC will be to strengthen the PMU capacity on a sustained basis; delineate the PMU's method of working, procedures and reporting; assist the PMU in introducing and supporting local authority reforms; oversee the work of the DSCs; assist the PMU in defining and preparing contracts; assist the PMU in designing, contracting, installing and operationaIizing new systems and procedures as required for the implementation of the Project; establish criteria for supervision, coordination and management; and importantly, oversee and coordinate the reform and institutional capacity building activities being undertaken under the Project or under separate funding.

2. PMC Team Composition

5. The composition of PMC shall be in a manner, whereby there would be a core team of experts to oversee the whole of the Project activities, and subject specialists who would be inducted for a specific activity requirement. The team would consist of a Team Leader with expertise in Project Management and Procurement. Two Project Engineers would support the team who would assist on technical and procurement issues The PMC team would also include a Institutional Development Specialist (Planner), a Safeguard Specialist and a Finance Specialist.

3. Tasks of PMC

6. The major tasks of the PMC associated with the provision of management support to the PMU during the planning, design and implementation phases of the Project are generally as follows.

a. General Management Tasks

(i) Advise the PMU on actions required to satisfy the Project assurances and covenants;

(ii) Develop procedures and prepare guidelines for evaluation of bids including procurement of contractors wherever necessary, recommendation of awards of contracts, etc.

(iii) Support PMU in establishing and managing a PPMS and a project- specific web site.

(iv) Assist PMU in screening subprojects proposed by participating local authorities;

(v) Prepare, or as necessary amend, existing procedures and guidelines for site supervision and quality control to include guidelines and detailed job descriptions for supervision engineers.

(vi) Assist the PMU in developing annual project work plans, job descriptions, staffing schedules and equipment budgets;

(vii) Support the PMU in providing guidance to SPCUs on technical matters such as reviewing surveys, investigations, studies and master plans; sub-project preliminary and final designs, construction drawings and estimates; bidding documents, ensuring sound supervision and quality control of project component construction and any other technical matters that arise; (It is to be noted that the review of designs and estimates by the PMC will be a general review and the responsibility of the designs, estimates and bid documents will be that of DSC only)

(viii) Assist the PMU in advising and supervising SPCUs with all aspects of procurement activities, including review of bidding documents and bid evaluation;

(ix) Assist the PMU in advising and supervising SPCUs in establishing, testing and reviewing financial accounting and control systems and ensuring accurate and timely report submissions and funds flow from the ADB and onwards to the implementing agencies;

(x) With the PMU, ensure the effective and timely delivery of the various institutional development aspects of the Project;

(xi) Assist the PMU in supervising, coordinating and monitoring the work of SPCUs and DSCs.

(xii) Assist the PMU in advising the National and Provincial Steering Committees on various issues on the Project Implementation.

(xiii) Supervision and Monitoring: Assist the PMU in monitoring the work of SPCUs and DSCs in supervision of construction activities particularly with respect to quality control procedures and quality control of the works, prepare a quality control program and implementation related issues at the local level. Investigate particular construction problems or delays that have been reported from the site and recommend on actions to be taken to resolve the problems or overcome the delays. Assist in interpreting and applying the various legal provisions of the contract, and in amicably resolving disputes;

(xiv) Environmental Monitoring: Assist PMU in SPCUs’ establishment of a system and training staff to monitor the Project and recommend actions to be taken, in accordance with ADB's Safeguard Policy Statement;

(xv) Resettlement Monitoring: Assist the PMU in supervising the implementation by SPCUs of the resettlement plans and assist with monitoring of the affected households and persons. Advise the PMU to ensure that the ADB's Safeguard Policy Statement is met;

(xvi) Identify training needs and opportunities to enhance the efficiency of Ministry, Provinces and Local Authorities;

(xvii) Create awareness in the importance of maintaining an up-to-date management information system and assist in its operations;

(xviii) Assist PMU in reviewing, advising, and closely monitoring the preparation and implementation of reform plans by local authorities, which cover the areas of (a) service delivery, (b) tax, licensing and approval system, (c) effective asset management including O&M, and (iv) governance;

(xix) Assist Local authorities in management information systems improvement;

(xx) Assist PMU in preparing various reports for submission to ADB, including quarterly progress reports and project completion report; and

(xxi) Assist PMU in coordinating with other teams of consultants, particularly those working on the review and recommendation of tax, licensing, and approval systems of local government and the preparation of draft by-laws and regulations in accordance with the legal amendments to relevant ordinances and acts.

PMC Staffing - Indicative Personnel Requirements for PMC 1. Positions

A. a. International Consultants

 Team Leader/Project Management and Procurement Specialist B. b. Domestic Consultants

Safeguard Expert Institutional Development Expert Finance Expert Information Technology Project Engineers (2) Secretarial Assistance

b. Detailed tasks of the PMC team

Team Leader

(i) Advise the PMU in the Project Management and Procurement issues.

(ii) Advise the National and Provincial Steering Committees on Project Implementation and Management issues.

(iii) Assist the PMU in developing the management skills relating to strategic planning, in developing management skills and monitoring control.

(iv) Providing administration and coordination support to PMU.

(v) Reviewing the detailed implementation schedules covering all stages of implementation process for each subproject from field survey and investigations to acceptance of finished work.

(vi) Assisting PMU in providing guidance to SPCUs in terms of designing contracting, installing and introducing operational new systems and procedures for implementation of the Project.

(vii) Review Construction Supervision of Subprojects / Design and Supervision Support including quality, cost and time controls.

(viii) Preparation of quarterly progress reports and other reports as required to be submitted to ADB.

Safeguard Specialist

(i) Prepare internal environmental and social safeguard guidelines and standard reporting systems for uniform reporting by all Local Authorities / SPCUs.

(ii) Review IEEs/EIAs and other environmental and social safeguards documents prepared by DSCs in relation to the Project and ensure compliance with government/ADB guidelines;

(iii) As part of implementation, support PMU in reviewing the documentation pertaining to environmental and social safeguard compliance (including bidding documents, reviews on-site, reports from contractors etc);

(iv) Conduct audits jointly with PMU / SPCU in matters pertaining to on-site Occupational Health and Safety and other environment and social safeguard requirements;

(v) Prepare sections of monthly/quarterly reports pertaining to overall Implementation of Safeguard requirements under the project.

Finance Expert.

(i) Assist PMU and SPCUs in establishing testing and reviewing financial accounting and control systems;

(ii) Review and monitor preparation and implementation of reform plans on financial matters;

(iii) Guide PMU and assist PMU in guiding SPCUs on financial, staffing and administrative improvements; and

(iv) Ensuring accurate and timely report submission and funds flow from ADB and onwards.

Institutional Development Expert.

(i) Advise on the Capacity Building requirements at various levels (at MLGPC, PMU, SPCU, Provincial Council and Local Authorities).

(ii) Advise on reforms required at various levels

(iii) Assist the finance expert in the preparation of monitoring mechanisms and monitoring of Reform Action Plan.

Information Technology

(i) Under the overall guidance of the team leader, advise the PMU on all aspects relating to procurement, design and implementation of information technology based activities.

Project Engineers

(i) Assist the Team Leader on all Technical and Procurement issues and preparation of progress reports.

II. Outline TOR for Design and Supervision Consulting Services (7 Packages)

Package 1 – Design and Supervision Consulting Services - Central Province Package 2 – Design and Supervision Consulting Services - North Central Province Package 3 – Design and Supervision Consulting Services - North Western Province Package 4 – Design and Supervision Consulting Services - Sabaragamuwa Province Package 5 – Design and Supervision Consulting Services - Southern Province Package 6 – Design and Supervision Consulting Services - UVA Province Package 7 – Design and Supervision Consulting Services - Western Province

1. Background:

The outcome of the project will be improved local infrastructure and services delivered effectively by local authorities in less-developed areas of Sri Lanka. Under the project, about 108 local authorities selected in seven provinces (excluding the Northern and Eastern provinces), whose reform plans would be reviewed and confirmed by the government will implement subprojects for roads and bridges, water supply and sanitation, drainage, solid waste management, and other basic facilities, including building or enhancing health-care centers and public markets. The project will also support the institutional strengthening of the local authorities for improved and sustainable service delivery through business process reengineering and the development of their information technology (IT) systems. To achieve the aims and objectives, the project addresses to support the selected local authorities through three components. Viz.,

Component 1: Local Government Infrastructure and Service Delivery Improvement Component 2: Local Government Policy Reform and Capacity Building Support Component 3: Project Management and Administration Support

As part of project preparatory work, based on the selection criteria23 for sub projects and through an inclusive planning and consultative process, a set of financially sustainable priority infrastructure projects have been identified and indicative costs estimated. It should be noted that these projects may at times change and consultant need to work on revised priorities in such cases. The support for investment is linked to commitment to a set of reforms by the Local Authorities. This will be facilitated by administrative and management reforms by the Government. The Project also supports project design and management through consulting services.

2. Objective:

The objectives of the consultancy are: Assess

i. With regard to sub projects identified, update the present status of the service sector (s) in the local authority area; ii. the technical feasibility inclusive of financial, economic, environmental and social analysis;

23Eligible subprojects include (i) environmental infrastructure such as water supply and sanitation (including sewerage), drainage, and solid waste management; (ii) economic infrastructure such as roads and bridges (including suspension bridges); (iii) public health infrastructure such as maternity and health centers; and (iv) other local authority facilities such as public markets (pola)

Prepare:

iii. based on prefeasibility, Prepare feasibility report, detailed design, drawings, cost estimates and bidding documents for planning and implementation of subprojects including environmental management measures, resettlement/ indigenous people and other social actions if any.

of physical works and compliance to design standards, environmental plan, resettlement plans and social/ indigenous people’s plans if any.

3. General Scope of Work

1) The scope of work mainly but not limited to includes services as indicated below for the local authorities and Detailed Sector wise Terms of Reference is provided vide Annexure 1.

2) Based on the pre-feasibility studies available, the Design and Supervision Consultant (DSC) is required to carry out a feasibility study (Sub project feasibility should include technical, financial and economic analysis, and preparation of safeguard documents in compliance with ADB requirements) and detailed engineering design, Prepare Detailed Project Report including environmental and social and financial /economic feasibility and prepare bidding documents for the project in compliance with ADB requirements. If the Local Authorities change the sub-projects due to the change in their preferences, it is the responsibility of the DSC to even conduct a pre-feasibility studies of the new projects and prepare prefeasibility report and then proceed with the other work as indicated in this ToR.

3) The overall design would cater for a period of over 50 years/ horizon / as defined as per national planning norms and a projected population as determined by the consultant based on appropriate projection techniques. The designs shall conform to relevant/ latest applicable National Standards and CEA requirements. Wherever such standards are not available, appropriate standards shall be followed in discussion with the PMU.

4) In addition, the DSC shall follow the requirements of the following documents in carrying out the services:

a) Resettlement Framework and Environmental Assessment and Review Framework of the project; and

b) Standard Bidding Documents for Procurement of goods and Works by ADB and of the Project

c) Checklists – Feasibility Checklists, Sector Specific Checklists and Detailed Design Checklist designed for the Project

d) Consultation Plan prepared for the project

5) The DSC needs to check that the subprojects selected meet the sub project selection criteria for the Project and reflect priorities and action in relation to the consultation and planning guideline of the Project and take into account the budget availability of each local authority.

6) Collect and update information regarding service levels in the study area including inventory of existing systems.

7) Collect necessary data for design and implementation. The details given in the pre- feasibility study, is only a reasonable preliminary basis. DSC shall be wholly responsible for all the details provided in their reports on physical and site conditions, the execution methodology, and various other parameters etc. All data utilized in preparation of the reports shall be presented indicating the sources of the data and also the basis of assumptions, if any. i.e The consultant shall be responsible for all the data or designs and drawings given by them.

8) Carry out topographical survey with reference to specified datum as required for the service up gradation and necessary geotechnical investigations. The local body shall indicate the Project sites and their measurements. The consultant shall be responsible for its verification and mapping. Soil tests as per relevant National Standards have to be conducted and necessary reports prepared by consultants to arrive at design parameters.

9) Prepare Detailed Project Report (DPR) inclusive of detailed cost estimates using the latest schedule of rates of the Province. Estimate associated costs such as road restoration charges/ shifting of utilities, resettlement etc. There should not be any lump sum items in the bill of quantities. For items not covered under schedule of rates, market rates to be assessed.(Necessary documents on quotations received should be made for assessment of market rates) and also prepare contract packaging plan.

10) For the given purpose and functional use of the respective sub-projects, proper design has to be developed. The consultants have freedom to choose the type of sub structure and superstructure, provided National code specifications and standards are met. The drawings and designs shall include a general arrangement drawing and a detailed longitudinal section drawing of all components in size A1 or A2. The level of detailing shall be such so as to enable check of conformance with code provisions, including detailed construction drawings and bar bending schedules. The responsibility of the preparation and issue of detailed construction drawings is that of the Design and Supervision Consultants.

11) Assist completely in bidding, bid evaluation and award process in procurement of works, goods and materials in accordance to guidelines of ADB.

12) DSC needs to prepare project Implementation schedule and budget with monthly targets, furnish network analysis such as Critical Path Matrix/ Program Evaluation and Review Technique (CPM / PERT) for purposes of effective project monitoring and regular reports.

13) Carrying out social impact assessments of proposed development including land acquisition and its financial implication, and if found necessary, prepare a Resettlement Plan and/or an indigenous peoples plan in accordance with the resettlement framework (RF) and indigenous peoples planning framework (IPPF) agreed upon between the Government of Sri Lanka and ADB;

14) If found necessary, prepare necessary environmental assessment reports such as an Initial Environmental Examination or Environmental Impact Assessment, in

compliance with the environmental assessment and review framework (EARF) agreed upon between the government and ADB;

15) Prepare community development and public awareness programs, and identify training requirements if any as necessary for the subproject construction, operation and maintenance.

16) Prepare action plan and report on implementing relevant part of the gender action plan of the project.

17) The consultant shall conduct his own studies and prepare estimates based on schedule of rates. The PMU, SPCU as well as the LA concerned and Project Management Consultants shall not be responsible (except as to risks specifically accepted under the conditions of contract) for the validity of the project details and designs and estimates.

18) The consultants shall assist the Local Authority in obtaining technical sanction from competent authorities.

19) The DSC shall mobilize exclusive supervision staff for the supervision of construction including comprehensive quality checks and measurements of works including checking the invoices sent by the contractor. The DSC is also responsible for certifying the quality of works.

20) The Consultant shall perform with reasonable skill and care the services for Architectural and multi-disciplinary design services, necessary to achieve the completion of the Project in accordance with the Project requirements, including services that are necessary, but not expressly detailed in this scope of services.

21) With the exception of the conceptual design phase, where the Consultant shall start work from the commencement date, the Consultant shall only be able to start work on each phase, once the Employer has given the Consultant written approval to the effect that the previous phase has been successfully completed. In order to get the Employer’s written approval for the successful completion of a phase, the Consultant shall make a presentation to the Employer of the design documents that he has produced for the relevant phase. The presentation shall be accompanied by appropriate presentation materials, sketches, study models, and written submittals described elsewhere in this schedule. Such services including travel expenses shall not be considered to be a varied service and shall be performed without any additional cost to the Employer or time allowance to the Consultant.

22) Contract Documentation Stage: Based on the updated costs estimates and the project schedules approved by the client., the consultant should do the following tasks:

(a) Preparing full set of working Drawings comprising of Architectural, Structural, Services Interior Décor , Landscaping etc; (b) Co-ordination with Employer’s representatives and Technical Evaluation Committee members on finalizing extent and sufficiency of details presented in working drawings and contract packaging; (c) Preparation of Bill of Quantities , and specifications and co-ordinating with the Employer in identifying Specialist sub-contractors;

(d) Consultant shall submit to the Employer the following documents necessary for calling tenders such as: (i) Pricing Preambles, Specifications (General specifications shall be ICTAD specifications applicable for relevant trades and special specification shall be relevant to the specific trades where general specifications are not applicable. (ii) Bills of Quantities. (iii) Instructions and Conditions of Tender (based on ADB standard documents). (iv) General Conditions and Particular Conditions of Contract (based on ADB standard documents). (v) Warranties / Guarantees. (vi) Instructions of Supervision of works. (vii)Program of Works. (viii)Full set of Architectural, Structural and Services working drawings. (ix) Preparation of bidding documents for procurement of furniture and furnishing. (e) Submission of full set of above documents for Employer’s approval.

23) Bidding and Negotiating Stage: During this stage, Consultant, must obtain the approval of the Employer to all Bidding Documents. (a) Assist the Employer to Invite Tenders for the project, based on the type of tender approved by the Employer. (b) Conduct pre-tender meetings, answer queries and advise Employer and tenderers on all technical and procedural matters during Tendering. (c) Advise and attend to the closing and opening of tenders. (d) Evaluate the Tenders and submit report and recommendations to Employer. (e) Assist the Employer to select a Contractor including negotiations with tenderes, if necessary, to finalize the Contract. (f) Advise the Employer on issue of Letter of Acceptance and Award of Contract by providing a suitable draft letter. (g) Arrange contract documents for the signing of the Contract by the Employer and the Contractor. (h) Arrange to hand over the site and the relevant documents to the Contractor. (i) Review and finalize the program and other instructions.

24) Construction Supervision Tasks include: a) Construction Supervision: Supervise construction of project components, monitor construction and quality control methods, assist to record measurements in accordance with the procedures followed in the Government, certify that quality of works conform to the specifications and drawings, assess the adequacy of the contractors' inputs in material, labor and construction method, furnish all revisions and detailed construction drawings as necessary during the continuance of the contract, attend third party inspections as necessary, check contractors' design and drawings for lump sum turnkey contracts, examine contractors' claim for extension of time and extra works, etc. and prepare recommendation for approval of Local Authorities / SPCUs. b) Check installation and commissioning, prepare measurement for works completed and in progress and certify bills for payment to the contractors/suppliers. Ensure that works are constructed to the prescribed quality in accordance with specifications in tender documents and quality assurance system; c) As required, assist the LAs / SPCUs in the resolution of contractual issues including review, evaluation and confirmation of contract Variation Orders;

d) As necessary, assist the SPCUs / LAs with overall contract management and approving of the ''as built" drawings as prepared by the Contractors. e) Prepare inception report, monthly/quarterly progress reports and project completion report; f) Conduct and supervise the implementation of training programs, in collaboration with the contractors, to strengthen the capacity of staff involved in operation and management of the new system, including the operation of facilities and equipment. g) Provide necessary advisory support to the local authority about the institutional arrangement for Operation and Management. h) Assist SPCUs in the preparation of plan of action for the subprojects for presentation to Local Authorities and get their consent. i) Prepare a simplified quality control manual for use of the field staff; j) Assist SPCU to undertake other tasks as assigned by the PMU k) Preparation of O & M plans for all the assets created in the project. l) Preparation of the sub project completion report in the format provided by the PMU. m) The other works at Contract Administration / Construction Supervision Stage are:

i. Provide all necessary information with the help of other Consultants where applicable and issuing instructions to the building contractor to enable the building contractor to proceed with the works. ii. Examine the work programme from time to time and advise both Employer and Contractor to fulfill their responsibilities to complete the project within the contract period. iii. Employ the supervisory staff required for resident supervision as per the financial proposal. iv. Assess and recommend variation to contract. v. Approval of shop drawings prepared by Contractors vi. Conduct weekly progress review meetings at site and reporting the same. vii. Attending progress review meetings conducted by the Employer. viii. Advice the Employer on arbitration and legal proceedings. ix. With other Consultants where applicable make periodic inspection of the works as provided in then “Schedule of Service” herein and conducting progress review meetings and issuing reports and Payment Certificates as required under building contract. x. On completion of the building to a stage reasonably satisfactory for occupation in the opinion of the Consultant, arrange the Contractor to hand over the building to the Employer and issue the certificate of Practical Completion. xi. Arrange to test all the systems installed and arrange to hand over test reports, and any other document needed as per Conditions of Contract. xii. Defects Survey upon practical completion of the Project and Notification to the Contractor.

25) The consultant is responsible for the following on Maintenance (Post-Construction works)

(a) Prepare a maintenance manual of services and plants with the help of contractors involved. (b) Advise regarding service agreements on equipment and services. (c) Advise regarding maintenance programmes for the Buildings and Built- Environment. (d) Arrange the Specialist Contractors to train the Client’s staff to operate the systems and plants. (e) With the help of Contractors and sub- Contractors prepare and submit “As-Built” Drawings, any changes done during construction to the plants; sections and elevations should be incorporated in “As-Built” Drawings and submitted to the client. (f) Review the Warranties and Guarantees and hand over such documents to Employer. (g) Carry out any inspections needed during the Defect Liability Period and prepare a list of items to be attended to by the Contractors and arrange such defects to be rectified by the respective contractors. (h) Upon completion of the Defect Liability period issue the Final Certificate. (i) Assemble Records and archive originals and copies as appropriate. (j) Contribute supplementary information for final submissions to Statutory Authorities (k) Monthly inspections to identify defects / reports (l) Advise on warranty claims. (m) Inspect the works during and at the end of the Defects Liability Period and prepare a list of defects and notify the Contractor.

4. Data, services and facilities to be provided by the client

The maps and other data related to this work, to the extent available in the Local Authority office will be provided.

The reports prepared by Project Preparatory Technical Assistance will be provided for reference.

5. Schedule of completion of tasks

All feasibility and designs work including the Detailed Project Reports and the Bid documents to be completed within 6 months of the assignment with the at least one subproject completed within one month of award of contract.

The supervision work should commence after award of work.

The project closing period is 30 June 2015 and all works to be completed at least 2 months before the project completion period to facilitated completion work and processing of final bills and payments to be made within the project closing period.

6. Procedure for Technical Sanction and Administrative Approval:

The Technical Evaluation Committee of the province under the project scrutinize the designs and estimates and finally give technical sanction for the sub-project and the Procurement Committee under the chairmanship of the Chief Secretary will issue the Administrative Approval for the Project.

The following documents shall be submitted to the TEC for approval –

1) Detailed Project Report ( With feasibility reports (environmental, financial and social), All drawings required, cost estimates) 2) Bidding document and all other documents required

7 DSC Team Composition:

The composition of the DSC would be such that if would be include a Team Leader who has knowledge and experience in design and supervision of urban infrastructure projects and supported by sector specialists like architects, design (Structural and other design) engineers, quantity surveyors, supervision experts. The team would be supported by required support staff.

The staffing would be as follows: Sl. Positions Person Months No. Professional Staff NCP NWP SABP SP UVA WP CP (DSC- (DSC- (DSC- (DSC- (DSC- (DSC- (DSC-01) 02) 03) 04) 05) 06) 07) 1. Team Leader (Design and 18 18.0 15.0 15.0 16.0 11.0 3.5 Construction Engineer) 2. Architect - 1 3.5 4.0 3.5 3.5 3.0 3.0 2.5 3. Architect - 2 3.5 4.0 3.5 3.5 3.0 3.0 - 4. Architect – 3 3.5 4.0 3.5 3.5 3.0 3.0 - 5. Design Engineer (Structural and 2.5 3.0 2.5 2.5 3.0 3.0 2.0 Other Design) – 1 6. Design Engineer (Structural and 2.5 3.0 2.5 2.5 3.0 3.0 - Other Design) -2 7. M E P Engineer 3 3.0 2.5 2.5 3.0 3.0 1.5 (Service Engineer) 8. Water Supply Engineer( Design 4 3.0 1.5 - 1.0 - 2.0 and Supervision) 9. Civil Engineer (Solid Waste - - - 2.0 - - - management) 9. Roads, Bridges and Drainage Engineer 3 2.5 - 3.0 1.5 1.0 1.0 (Design and Supervision) 10. Safeguard Expert 3 3.0 2.0 3.0 2.0 2.0 1.0

Sl. Positions Person Months No. Professional Staff NCP NWP SABP SP UVA WP CP (DSC- (DSC- (DSC- (DSC- (DSC- (DSC- (DSC-01) 02) 03) 04) 05) 06) 07) (Environmental and Social) 11. Financial Expert 2 2.0 2.0 2.0 2.0 2.0 1.0 12. Quantity Surveyor 4.5 4.5 2.5 3.5 4.0 2.5 3.5 13. Technical Officer cum Quantity Surveyor 154 144 120.0 132.0 156.0 99.0 30.0 (Construction Period) (11 persons – 14 months each) Total Professional 207 198.0 161.0 178.5 200.5 135.5 48.0 Staff Months Support Staff 14. Draughts man 1 5 4.5 3.5 4.0 5.0 3.5 6.0 15. Draughts man 2 5 4.5 3.5 4.0 5.0 3.5 - 16. Data Entry Operator / Office 18 18.0 18.0 18.0 18.0 18.0 9.0 Coordinator 17. Office Assistant 18 18.0 18.0 18.0 18.0 18.0 - Total Support 46 45.0 43.0 44.0 46.0 43.0 15.0 Staff Months Total Man Months 253 243.0 204.0 222.5 246.5 178.5 63.0

The consultants are required to propose and quote for the Professional and Support Staff as per requirement estimated in the above table. However, it the consultant feels that manpower estimates need to be modified they can mention that in the proposal as note to Tech 6 with reasoning. The same would be discussed during contract negotiations with the successful consultant.

8 Minimum Qualification of the Consultants:

Position Qualification Team Leader (Design cum Bachelor Degree in Civil engineering or equivalent Construction Engineer) with corporate membership of relevantprofessional institutionand 10 years of relevant experience. Master’s and higher degree preferred. Architects Bachelor Degree or equivalent with corporate membership of relevant professional institutionwith 10 years’ of relevant experience. Master’s and higher degree preferred. Design Engineer (Structural and Bachelor Degree or equivalent with corporate other) membership of relevant professional institutionwith 10 years of relevant experience. Master’s and higher degree preferred. Water Supply Engineer (Design Bachelor Degree or equivalent with corporate and Supervision) membership of relevant professional institution with

Position Qualification 10 years of relevant experience. Master’s and higher degree preferred. Road , Bridge and Drainage Bachelor Degree or equivalent with corporate Eingineer (Design and Supervision) membership of relevant professional institution. Master’s and higher degree preferred. Quantity Surveyor NCT (QS) with 5years of relevant experience or Bachelor Degree in QS with 3 years of relevant experience Technical Officer cum Quantity NVQ level 5 / NCT with 3 Years of relevant Surveyor experience NDT preferred Safeguard Expert Bachelor Degree with 5 years relevant experience. Master’s Degree preferred Financial Expert Bachelor Degree with 10 years relevant experience. Master’s Degree preferred. Experience in financial analysis of projects is required.

9 General Deliverables:

The General Deliverables with time lines of some common report are as follows:

Type of Report Time Line Inception Report Within 15 days of Mobilization Monthly Report With in 5th of every month Detailed Project Report with drawings and As agreed during contract negotiations annexures (Contains feasibility study, resettlement report, estimates, all required drawings, social, environmental and financial analysis report, and all required sections) – Drawings to be sufficient for construction Bid Documents As agreed during contract negotiations Final Completion Report of each subproject Within one month of completion of the subproject

Any other report /as desired by the PMU / SPCU / PMU

All draft and final reports to be submitted in 3 hard copies and final reports

General Format of deliverables by the Consultant (i.e. submission of documents) applicable for all Phases shall comply with the following requirements.

11 Document Format:

The primary language of the documents including drawings, specifications etc. are to be English. The format for cad files is to be Auto Cad 2006. All drawings and contract documents are to be issued in CADD and PDF format.

Procurement for the works will be mostly “measure and pay” type contracts and all contract documents shall be prepared in accordance with the “Procurement Guidelines of ADB.

Design Report - Designs and documents submitted by the Consultant for review to the Employer shall include generally: - a Contents list - a Summary - Design criteria including any modifications based on the review of conceptual designs - References including specification requirements, design codes of practice, manuals, catalogues and supporting documents used, numbers and titles of drawings which are based on the design - Criteria, parameters and methods used - Test procedures, analyses and results - Calculations and schedules - Qualitative description and comments on results - Any other detailed investigations - Any other relevant information - The Designs and documents shall be presented on A4 size paper with every page numbered and bound in order between a transparent front cover and stiff back. The title of the submission shall be given on the front sheet beneath the title of Contract, Consultant’s name, title of works location, author’s reference, date, signature, and any other relevant information. Drawings submitted as part of the design or document shall be presented on A3 size paper (unless otherwise requested by the Engineer to submit on A1 or A2 size paper) folded into pockets at the back. The Consultant shall bind in as appendices to the designs and documents. English language copies or photocopies of any standard, code of practice, manual or other reference referred to in the designs and documents, which have not otherwise been submitted.

Following acceptance of a drawing by the Client, one original print on white paper and three paper print copies of all accepted drawings with the date of the Engineer’s acceptance marked on the original shall be delivered. In addition, all drawings shall be provided on CDs as DXF files suitable for Auto Cad 2006. Three copies of accepted designs and documents shall also be submitted.

12 Drawing Format

Drawings submitted by the Consultant for review shall be based on previously submitted designs or documents. Inter-related drawings shall be submitted at the same time in a complete and self-sufficient set. Copies shall be collated into ordered bundles, each with a list of contents.

All drawings provided by the Consultant shall be in the form of good quality reproductions and shall conform to the requirements of the relevant British Standards in respect of drawing size, presentation and use of symbols. Drawings shall be no smaller than A4 and no larger than A1 and be of micro-filmable quality. All dimensions used on drawing shall be in metric units and all drawings shall be to

scale and shall include a graphical scale to aid the use of photographic reproductions. Preferred scales are 1:1, 1:2, 1:5, 1:10, 1:20, 1:50, 1:100, 1:200, 1:500, 1:1000, 1:2000. In case of longitudinal sections of pipelines, the scales may be 1:2500 horizontal and 1:250 vertical.

13 Drawing Numbering and Titling

The Consultant shall use a reference numbering system for designs, drawings and documents so that each number used is unique. The numbering and title information on designs, drawings and documents shall be designed so that management, transmittal and communication of drawings can be carried out expeditiously using computer-aided data base system.

All drawings shall bear the following information: - Employer’s Name, Address - Consultant’s Name, Address - Contract title - Contract number - Drawing title, including names subproject, of facility and site - Drawing number - Name and designation of the design Engineer - Name and designation of the Engineer who checked/authorized - Revision schedule - Scale - Date The Consultant shall maintain a drawing register listing all drawings prepared as part of the Contract. The drawing register shall incorporate a revision number. Wherever a change is made to the drawing, the revision number, the date of change, full details of the change and person responsible for the change shall be recorded on the register. The first issue of a revised drawing shall clearly indicate with suitable means, where on the drawing the revision has been made. The first revision of the drawing shall be designed as revision 1. At monthly intervals, until all design is complete, the Consultant shall submit a copy of the current drawing register to the Employer for his information. A final copy of the register shall be supplied to the Employer on completion of the contract.

14 Submission and Review

Submission of Drawings for Review: Before submission, the Consultant shall verify all drawings and documents to ensure their compliance with the specification. Such drawings shall be clearly identified as being checked by the Consultant. All drawings not so checked and noted will be rejected by the Employer and returned to the Consultant without further comment. Consultants’ drawings and documents shall be numbered in accordance with the Consultant’s numbering system.

All submissions shall have been checked by the Consultant and shall be stamped and designed to confirm that the checking has been carried out. Checking shall be carried out by a chartered Engineer (or equivalent for other disciplines) experienced in the type of work involved. Any submissions not so marked will be returned to the Consultant immediately.

15 Review of Submissions by the Employer

Items submitted for review by the Consultant and returned by the Employer, will be categorized as follows:

Category Description Accepted Subject to its compliance with the specification and conformity with the overall design, the Employer has no comment on the submission. Accepted with Subject to its compliance with the specification and conformity reservations as with the overall design, the Employer has some comments on marked the submission, but they are not such as to necessitate formal

resubmission. Where the Consultant makes changes to an item, an updates issue shall be provided to the Employer for record purposes. Rejected The Employer will indicate the grounds for his not accepting the submission; the Consultant shall amend or revise the submission accordingly and resubmit the item for review.

Acceptance by the Employer of any drawing, structural design, method of work or any information regarding materials and equipment the Consultant proposes , shall not relieve the Consultant of his responsibility for any errors or omissions therein, and shall not be regarded as an assumption of risks or liability by the Employer, and the Consultant shall have no claim under the Contract on account of the failure or partial failure or inefficiency of any design, plan or method of work or material and equipment so accepted.

16Certification / Signing the drawings / document

All designs shall be signed / certified by qualified designers.

Qualified Designer shall means:

For the preparation of Architectural drawings qualified designer shall mean a Corporate member of the Institute of Architects of Sri Lanka.

For the preparation of Structural drawings qualified designer shall mean a corporate member of the Institution of Engineers of Sri Lanka.

For the preparation of Service drawings qualified designer shall mean a corporate member of the Institution of Engineers of Sri Lanka in the relevant discipline.

For the preparation of Electrical of Mechanical drawings qualified designer shall mean a corporate member of the Institution of Engineers of Sri Lanka in the relevant discipline.

Chartered Engineer shall mean a corporate member of the Institution of Engineers of Sri Lanka in the relevant discipline.

Quantity Surveyor –shall mean a Corporate member of the Institute of Quantity Surveyors of Sri Lanka

The consultant personnel who certify and affix their signatures should be registered under UDA (Their names should appear in the UDA register), and authorized to certify the drawings and documents. If such registration is not available, they should apply for the same and get registered before certifying the drawing / document.

Annexure 1 Local Government Enhancement Sector Project – Design and Supervision Consultants Detailed Terms of Reference – Sector Specific

2.1 Scope of Work- Improvement to Storm Water Drains – Specific Tasks

Specific tasks of the design and supervision consultancy on works related to Storm Water Drainage improvement apart from the general tasks described earlier are:

a) Using available maps, topographic sheets and by reconnaissance and detailed survey of the catchment and sub-catchment areas, determine storm water flow and show on a plan in the form of modules each module covering the catchment area. b) Analyze rainfall data of the previous years (no. of years would be in accordance with the standard practice followed in the country) and estimate storm run-off per unit area for various storm frequencies; c) Prepare an outline drainage plan for the area and identify missing links and prioritized program of improvement works. d) For priority drainage area, carryout detailed topographic survey and leveling to prepare longitudinal sections of the system and cross sections of important rivers, major channels and drains covering a width of 15 m on either bank generally at intervals of 10 m along with L- sections and detailing all the temporary and permanent structures met within that width. All the structures and encroachments will also be marked with enough details. e) Indicate the details of other underground services, mainly sewers and water mains (electrical cables) which are in the vicinity of the storm water drainage system and show their distance from storm water drains with a view to know about the possibility of providing by-pass storm water drain and for deciding their location. f) Indicate the inundation area clearly, showing probable depth of water accumulation in case of intensity of rainfall as agreed with the SPCU. g) Locate all ponds and flood water holding ponds/zones in part portions of open gardens or playgrounds – showing therein probable size duly dimensioned should be shown on plan along with various arrangements / devices to dispose off the accumulated water to nearest outfall or conserve the water so as to reduce the shortage of water supply and to be shown in a tabular proforma. h) Carry out analysis of existing situation of storm water drains to identify deficiencies and develop alternative strategies and options for expansion / augmentation of the existing system to address system deficiencies. i) Prepare detailed cost estimates for priority drainage area. Estimate necessary road restoration charges wherever needed. j) Prepare a traffic diversion plan as necessary and incorporate in bidding documents.

2.2 Scope of work- Water Supply – Specific Tasks

a) Based on feasibility, the Consultant is required to carry out a detailed engineering design including environmental and social studies and prepare, Detailed Project Reports and bidding documents for all the identified water supply sub-projects .

b) The overall design would cater for a period of over 30 years/ horizon as defined as per national planning norms and a population as determined by the consultant based on appropriate projection techniques. The designs shall conform to relevant/ latest applicable National Standards, NWSDB guidelines and CEA requirements. Wherever such standards are not available, appropriate standards shall be followed in discussion with SPCU/PMU.

c) Based on the pre-feasibility reports, ,the work involved and the study/output shall include, but not necessarily limited to the following as necessary:

(i) Designs for development/ rehabilitation of works at source and transmission and distribution for selected Local Authority(s); (ii) Designs for development/ rehabilitation of constructing treatment plants (as necessary; (iii) Designs for development/ rehabilitation of Internal distribution lines with adequate regulations to ensure equitable water supply; (iv) O&M mechanism including a plan and staffing requirements and (v) A tariff system and a mechanism to update tariff periodically (vi) Suggest proper zoning and block regulations if any, in order to give equitable water supply with optimal utilization of existing infrastructure facilities. (vii) Identify potential options for the long-term system improvements with recommendations for addressing environmental, institutional and regulatory issues if any. (viii) Estimate the investments required including O & M for various identified options with financial analysis taking into consideration the water tariff to be levied for capital and operation and maintenance requirements (ix) Support LA in preparing actions required for staffing of the water unit and in establishing tariff mechanism (x) Based on cost-benefit analysis and cost projections, prioritize the investment proposals based on economy and efficiency.

d) Soil Investigation: Soil tests as per relevant National/ NWSDB Standards have to be done by consultants to arrive at design parameters for the formation and safe bearing capacity. At locations proposed for important installations such as pump house, OHT/sumps etc., at least one bore hole for every such installation, should be made to determine the SPT N values at depth specified in the relevant codes. Soil samples taken from bore holes should be visually classified, index properties determined and presented in along with the final report. The subsurface water at each bore hole be sampled and a chemical analysis carried out, to recommend appropriate cement/admixture for use in concrete mixed for the foundations. Recommendations of a geo-technical expert should be furnished in the soil report and should cover aspects like appropriate soil stabilization measures if required, bearing capacity of the founding strata etc.

e) Instrumentation: All necessary instrumentation such as flow meters, energy meters etc shall be arranged and operated by the consultants at their own cost.

f) For the given purpose and functional use of the respective projects, proper design has to be developed. The consultants have freedom to choose the type of substructure and superstructure provided code specification / National/ NSWDB stipulations are met. The drawings and designs shall include a general arrangement drawing and detailed drawings of all components in standard size. . The level of detailing shall be such as to enable check of conformance with code provisions, including detailed construction drawings and bar bending schedules.

g) Prepare a traffic diversion plan as necessary and incorporate in bidding documents

2.3 Scope of work - Roads and Bridges. – Specific tasks

2.3.1 Investigation of Project Road Alignments:

a) Review the requirement of improvement of the road improvements prioritized after the consultation and requirement assessment to be taken up under the Project.

b) The consultant needs to assess the following before undertaking the feasibility studies and detailed design

a. Type of terrain / topography of the existing alignment, improvement requirements based on existing condition and requirement of any road re-alignment.(if any)

b. Land use including existing settlements / structures (location and structural condition) and identify any bypass requirements (if any)

c. Hydrological and drainage characteristics to identify risk of flooding. The Consultant shall undertake hydrological and hydraulic studies for all drainage catchments with careful analysis of topographic maps and field investigations. The calculation of catchment run off and channel discharge characteristics shall be based on rainfall intensity and duration for a return periods identified in the Drainage Design Manual for the various drainage elements and bridges. The capacity of existing waterways and drainage structures shall be checked and their deck levels shall be compared with anticipated flood levels. Slopes and capacity of side drains and turnouts shall be surveyed in areas where erosion or flooding presently occurs, in order to ensure adequate design of side and catch drains, erosion control measures and the protection of side slopes. Detailed site investigation and surveys shall be carried out for areas susceptible to flooding or landslide, and at all proposed new or replacement drainage structure locations, including a sufficient length up stream and downstream to the structures. Preliminary structural design shall be undertaken with a view to fixing vertical and horizontal alignments at those structures.

d. Environmental effects and Social impacts. Assessment and projection of traffic volume and type based on one day traffic counts or as necessary in line with the standards on required section as necessary. The forecasts should include best estimate of likely demand (based on economic activity, past growth trends, growth in vehicle population, planned developments, etc). The forecasts should also include the impact on the project area during and after the construction period.

The Consultant shall assemble and evaluate available accident data and seek to identify principal causes and assess the potential for the project to reduce accidents through, for example, improved junction layouts or the provision of pedestrian and non-motorized facilities. The consultant should compile a list of the problem areas and his proposed approach to mitigate the problems.

Utilities: The Consultant shall obtain from concerned authorities the utilities maps showing the locations, dimensions and capacities of their existing underground and overhead apparatus within the road reserve, or potential road reserve extension. The consultant shall show all utilities and data on a draft set of utility drawings to later be incorporated into the design drawings. Where shown on the authorities maps, the data shall include the above ground height or buried depth of all services, including cross road services to adjacent properties. The accuracy of all such records shall be verified on site by the Consultant both by observation and by use of non-intrusive detection equipment. In addition, the Consultant shall obtain details of utility proposals for short and medium term service enhancement proposals, and consider the implications of these in the design. The consultant shall include in the project specification a requirement for the contractor to locate these services early on in the construction contract.

The Consultant shall prepare an Initial Assessment Report summarizing the findings from their visual assessment and Investigation of Project Road Alignments, which shall include a detailed project road inventory and photographic record. The Consultant shall liaise with the Client to agree on the actions and priorities recommended in their report.

2.3.2 Topographical Survey:

The Consultant shall carryout the topographical survey using Total Station or other appropriate methods.

The width of the survey corridor shall extend past the ROW and take into account the layout of the existing alignment including the extent of embankment and cut slopes and the general ground profile beyond. The following existing over and underground features like poles, pipes trees, building lines,

bus bays, culverts and drains, bridges etc in full shall be mapped for a corridor width not less than ROW required. Survey shall be carried out as per the code list required for survey data processing.

Cross-section shall be taken at distances as per national standards in longitudinal direction for entire width of carriageway. For small drains across CD works, at least three cross sections shall be taken, namely one at the selected site, one upstream and one downstream. For major drains and streams across bridges, cross sections shall be taken as per national design norms

The Consultant shall be fully responsible for the accuracy of the survey.

2.3.3 Soils Materials and Pavement Investigations

The Consultant shall undertake extensive soils and materials testing in relation to the: a. adequacy of sub grade materials on existing and new alignments;

(i) stability of existing embankments and cuttings and their capacity for raising or deepening; (ii) suitability of cut materials to be utilized as fill; (iii) identification of suitable borrow pit and gravel pit location and an estimate of the volumes of suitable material they may yield and potential water points; (iv) Identification of suitable sources of aggregates and an estimate of the volumes they may yield.

The consultant shall in discussion with the SPCU arrive at the tests to be conducted and conduct the same in standard laboratories acceptable to the client.

2.3.4 Culvert and Bridge Inspection and Assessment

The Consultant shall undertake a detailed condition survey of all existing drainage culverts and all bridges to be retained to determine their structural adequacy and traffic load capacity. Assessments shall be made of their residual life, and the cost of repairs or reconstruction to increase capacity. The Consultant shall make recommendations as to their retention, reconstruction or replacement.

The Consultant shall carry out necessary non-destructive testing of the culverts and or bridges. The Consultant shall include a draft non-destructive testing program, and structural investigations for the culverts and bridges, including provisional cost estimates in their proposal. This shall be refined and updated once the assignment commences.

In cases of new bridges, the Consultant shall carry out a borehole investigation to determine the strength of soil and/or prove rock depth and strength for each bridge at the location of each abutment and alternate pier.

2.3.5 Geometric design

The Consultant shall develop optimum vertical and horizontal alignments having regard to:

(i) design manual criteria or such other criteria agreed with the Client; (ii) the need to balance cut and fill; (iii) the need to minimize land take beyond the existing road reserve; (iv) the need for inbuilt safety measures such as climbing lanes, right turn lanes, traffic calming measures; (v) the need for adequate road user facilities such as bus bays and laybys, including space for vendor services; (vi) the need to protect vulnerable road users (vii) a requirement for accommodation works to be affordable and acceptable to frontages; (viii) minimize the need to protect or relocate utility services; (ix) the need to avoid geological, hydrological and environmental problems; and (x) the need to avoid extensive and expensive bridge and structural works.

Where alternative horizontal alignments beyond the road reserve limits are to be evaluated, the Consultant shall develop and cost options at an early stage and prepare a report for consideration by interested parties and the Client. The Consultant shall propose target dates for the presentation of such options and selection of the preferred option in their work plan in the Initial Assessment Report, ensuring sufficient time to complete the detailed design of the preferred solution within the assignment timescale.

Vertical and horizontal alignment data shall be computed for the centre line at a maximum of 20m intervals and at all vertical and horizontal transition points.

2.3.6 Preliminary Engineering Design and Feasibility Study

It is intended that the project road be upgraded to meet the agreed design criteria for the standard of road. The consultant shall not assume it will follow the existing alignment full length, as sections may have to be improved to meet the agreed standards and design criteria.

The consultant shall consider the surveys, investigation, studies and analysis as made above and prepare a Preliminary Engineering Design along with Feasibility.

The consultant shall present to the Client alternatives for improvement in alignment of the road and for improvements e.g. service roads and/or walkways, lay buys for motorized and non-motorized vehicles, where the road passes through Local Authorities and settlements.

Road drawings to include: Plan drawings of appropriate scale to show alignments, vegetation type, main drainage elements, right of way and clearly show areas of land take

Profile drawings shall also be to appropriate scale to include the existing road surface or natural ground level and proposed vertical alignment.

The consultant shall undertake the geometric design of the road using a modern and comprehensive (Computer Aided Design and Drafting) CADD package. This CADD software must be capable of allowing the designer to assess different alignments along the proposed route All topographical and design data shall be supplied in a format suitable for input to a road design software or similar. The design shall be referenced to a line or string which shall contain details of chainage (or station), horizontal and vertical geometry information.

The consultant shall divide the road into homogenous sections in terms of traffic loading and strength, and propose at least two alternative pavement options in terms of layer type, quality and thickness of pavement considering the project traffic loadings for each section. The consultant shall take into account availability of suitable construction materials along the route.

Preliminary Design of Structures: Based on the full topographic survey, geotechnical investigation, hydrological study and other studies, prepare structurally sound and cost effective design ,layouts for all major structures in the project road.

Preliminary design of proposed bypasses, whether or not to be included in the works contract prepared under this consultancy

Preliminary design of proposed grade separated junctions, whether or not to be included in the works contract prepared under this consultancy

The Consultant shall calculate quantities for the items of construction based on the preliminary design drawings and shall prepare a preliminary bill of quantities along with preliminary cost estimates

The Consultant shall prepare a Preliminary Design Report that shall include:

 preliminary investigation results, analyses and interpretation of findings

 analysis of design options and recommendation of most viable option  preliminary findings with regard to environmental and social impact and road safety  location maps, layout plans and profiles  typical cross sections showing cut and fill slopes  typical cross section drawings showing pavement details  drawings for cross drainage  two alternative pavement designs for each homogenous road section  bridge drawings  plans through town centres, plans for bypasses and plans for grade separated junctions

2.3.7 Detailed engineering design

As the design progresses the Consultant shall maintain close liaison with the Client and shall submit for approval from time to time, according to the work program, draft design proposals for the alignment, drainage, pavement, structures and other technical aspects of the design prior to proceeding to the detailed design drawings. Where a number of options have been considered these shall be described and analyzed in a Design Options Report. Similarly, the Consultant shall submit draft technical specifications and bills of quantities prior to producing the draft final bidding documents.

2.3.7.1 Design Standards

The engineering design shall be undertaken using appropriate computer aided design software. The Consultant's proposal must state the software they intend to use, and ensure it is compatible with the Client software and IT systems in the early stages of the design assignment.

All topographical and design data shall be supplied in a format suitable for input to an appropriate road design software. The design shall be referenced to a line or string which shall contain details of chainage (or station), horizontal and vertical geometry information.

The Design shall be undertaken to National standards and the agreed variations. The Consultant shall prepare a Design Departures Report that clearly identifies all instances where these design standards have been deviated from in their design, with justification for the deviation. These deviations shall include instances where the Consultant considers the design standards to be lacking or inappropriate to the project.

2.3.7.2 Detailed Geometric Design

The preliminary optimum vertical and horizontal alignments shall be reviewed in relation to the outcomes of the entire engineering investigation process, and in relation to progress with land acquisition issues. Adjustments shall be made as necessary and care shall be taken to retain coordinated vertical and horizontal alignments.

Alignment set out details such as tangent length, curve radius, deflection angle, apex distance, transition length etc shall be prepared to ensure easy setout of the alignment. In order to ensure setting out using Total Station, coordinates of all centre line intersection points, tangent points and straights at 100m intervals shall be determined and scheduled. Likewise horizontal and vertical curve data at 20m intervals shall also be scheduled.

Cross sectional design shall take into account the need for: earth works side slopes and cuttings, including the need for benching or other slope stability measures,Extra Widening,climbing lanes;bus bays, lay bys and mobile weighbridge lay-bys; additional lanes or service roads in high density areas;footways and lanes for non motorized traffic; requirements for open or piped side and catch water drains, subsurface drains;space to accommodate utility services and roadside furniture, e.g. road lighting and ducting, guardrails, road widening, road signs and the like.

Full cross section data shall be computed at 25m intervals

Where cross sectional requirements cannot be accommodated within the existing road reserve, the preliminary land acquisition proposals shall be revisited or retaining structures to limit the road reserve requirement may be considered.

2.3.7.3 Pavement Design

The Consultant shall develop a range of standard pavement designs and associated maintenance regimes and economically evaluate each to determine which the lowest whole life has cost. The Consultant shall identify road sections, which may require a non standard pavement design due to a range of factors including:

 a particularly weak sub-grade;  very low traffic levels;  excessive local heavy vehicles;  locations, especially in urban areas and near markets, subject to long term parking of heavy goods vehicles;  diesel leakages from stationary vehicles; and  a lack of local pavement materials coupled with excessive haulage costs from elsewhere.

Non-standard designs shall be developed for each of these sections and presented to the Client for consideration.

In determining, the number of standard axles to be carried by the pavement during its design life the Consultant shall:

(i) take into account potential regulatory changes; (ii) design on the basis of existing average axle loads, not allowable axle loads; (iii) increase the design axle loads by 5%, or more if historical and present overload data does not indicate a progressive tightening of overload control; (iv) carry out a sensitivity analysis on the axle load and traffic ADT variation (+1-5%, +/10% and +/-40%) and assess how this affects the pavement designs; (v) compute standard axle numbers for low, medium and high heavy vehicle growth predictions. (vi) The cost implications of designing for medium and high traffic growth over and above low growth shall be evaluated in financial and economic terms and a recommendation shall be made to the Client as to the preferred option. (vii) In determining, which existing pavements can be retained in situ and overlaid with additional materials the Consultant shall have regard to anticipated further deterioration prior to the start of construction works; a period expected to be at least two years. (viii) Pavement materials, which cannot be retained in situ as a result of location or condition, shall be recycled as sub-base or for use in temporary diversions.

2.3.7.4 Design of Drainage Structures (Side & Cross Drains)

The Consultant shall engage with roadside communities and local authorities to raise awareness of the need to offer easement rights for road drainage to run-off over adjoining land to ensure adequate drainage. Where such easement rights are required, the Consultant shall submit details for inclusion in the Resettlement Action Plan and shall design such run-off drainage in consultation with the affected landowner.

In designing bridges over 6m span the Consultant should have regard to providing as much standardization as possible and offsite pre-casting or fabrication of components. The choice of design must reflect seasonal constraints to construction, whether bridges are likely to be on the construction programmer’s critical path and the cost and practicality of providing temporary bridging.

2.3.7.5 Potential Borrow Pits, Quarries and Gravel Pits

Following preliminary identification of borrow gravel pit and quarry locations the Consultant shall consult with authorities as to possible locations and legal requirements, prepare tentative proposals and plans for their opening, operation and restoration. The project specification shall specify that the final responsibility of establishing borrow pits, quarries and gravel pits are with the Contractor and the plans prepared as part of the design is only indicative. Such plans shall cover, but not be limited to:

 precise locations and boundaries of each pit/rock source;  land ownership, including haul roads;  material quantities to be extracted and their location in the road works;  the stockpiling of overburden;  necessary planning consents; and  public roads to be used for haulage purposes and their protection  Environmental compliance.

The Consultant shall examine existing quarries and crushing plants and their capacity to supply aggregates and granular mixes to the required specifications.

2.3.7.6 Design of Ancillary Features

Traffic Signals & Control Design

Should the need arise for the adoption of Traffic signals/ other traffic management measures, the Consultant will submit design rational to the Client for review. Once agreed the consultant will design the traffic signal layout(s), specify the equipment, which is to be agreed with the Client to ensure it is compatible, and ease of maintenance.

Roadside Furniture

The Consultant shall clearly mark on design drawings the extents of the existing and proposed road reserves and design permanent signage to indicate the extents of the road reserve. The Consultant shall fully schedule necessary mandatory and informatory road signs and markings and ensure that their siting makes them highly visible yet minimizes obstruction to road users and driver sight lines. All signs shall be reflective. Best international practice shall be observed in the introduction of anti-vandal construction details.

Road markings shall be fully detailed and be comprised of reflective thermo-plastic or similar durable paint.

The Consultant shall pay particular attention to the provision of safety features such as guard rails and the like, and hold consultations with the Client and road safety organizations to ensure effective provision and siting of these features.

Crash barrier systems (Safety Fencing & Safety Barrier)

The Consultant shall include in their design safety barriers and safety fencing, where identified as necessary and according to the findings of the Road Safety Audit. The design of crash barrier systems shall consider whole life costs and durability. The Consultant shall assess the cost and engineering considerations of providing steel, concrete or other safety barriers systems, and present their analysis and recommendations of these options to be the Client for consideration.

2.4 Designs of Bridge

The consultant shall workout the Hydrological and hydraulic calculations and confirms the floods characteristics of the streams crossed, including the elevation of the water surface, the velocity of flow, for a recurrence interval of 100 years

The detailed design shall take account of the bridge location and expected difficulties in constructing the bridge, lead time in importing specialist materials if proposed, maintenance of the bridge with a view to ensuring the bridge is "buildable" and "maintainable".

The foundations shall be designed based on the geotechnical- data obtained at each abutment and pier location.

The consultant shall use recognized structural design software and shall produce output data in a format that can be easily followed and understood. The detailed design calculations are to follow B S/International Standards in layout and referencing.

The Consultant shall prepare structural report which shall include the assumed method of construction and risk assessment of whether any elements of the structure may be overloaded through the construction process, a full set of detailed design calculations, basic design assumptions and criteria used are to be included in table and note form on the drawings. The report shall include all necessary design drawings and schedules / tables. Drawings of each structure are to be prepared in sufficient details for the bridge to be constructed.

The consultant shall prepare a provisional traffic management plan detailing how motorized and non motorized traffic and pedestrians shall be accommodated during the construction phase. The plan shall:  develop a phased approach to construction which minimizes road user disruption;  detail which public roads shall or shall not be used for construction or diverted traffic;  locate and detail temporary diversion roads;  lay down conditions for one way traffic working;  detail required provisions for temporary bus bays and lay by facilities;  ensure that frontages, particularly commercial frontages, shall have reasonable access at all times;  detail the temporary signing that must be provided and maintained;  specify speed limits to be applied, and specify where and when speed humps may or shall be provided;  specify the minimum standards of riding quality to be provided on the existing and diversion roads; and specify special facilities to be provided for pedestrians and other vulnerable road users, particularly in high density areas and near schools.

This plan shall be incorporated into bidding documents for works and bidders shall submit a lump sum price for its implementation. The Consultant shall ensure the works contract documents make it clear that the successful bidder may present modifications to the plan during the various stages of implementation to suit precise construction requirements, but will not be permitted to over-ride the main provisions of the plan.

The Consultant shall prepare and submit contract drawings and load them onto AutoCAD/ standard design software and on the Client’s systems and present, the drawings are complete. The scale of presentations should be as per national standards/ international best practices.

Detailed bills- of quantity shall be prepared under the following general headings: preliminary and general; clearing and earth works; drainage (culvert and protection works); sub base and base; surfacing; major structures including bridges; road furniture; ancillary works; schedule of day works.

Quantities for pavement works must allow for anticipated further deterioration between the time of the consultancy and the expected start of road works. They must also allow for the ongoing maintenance of existing pavements by the contractor pending their incorporation into the works, with penalties for non conformance.

The Consultant shall be advised by the Client whether any facilities provided for the purposes of the construction contract, such as offices, houses, laboratories, vehicles etc, are to be retained by the Client or are to be owned by the Contractor.

In order to make a fair and reasonable estimate of the construction costs the Consultant shall prepare a unit price analysis of each major item using basic cost elements (labour, material, equipment, overhead, risks and profit) and showing separately the cost for taxation. Costs shall be broken down into foreign and local currency components.

Cost comparisons shall be made in respect of both unit rates and per km costs with similar ongoing projects in the region. These comparisons will be presented in tabular form supplemented by possible explanations for significant variances.

The consultant shall prepare a construction program and, in the process, identify the following: i. list of required construction equipment with their size/capacity-which shall be also used as the basis for identifying the minimum required equipment to be stated in the prequalification documents; ii. combination of the construction equipment assumed in estimating works production rate per major activities assumed; iii. major activities and their duration; iv. network program showing the proposed ordering or sequencing of the major activities; v. duration of the entire project in the form of a bar chart; and vi. monthly cost of each major activity and anticipated expenditure forecast; vii. method statements;

In carrying out the analysis, the consultant shall take into account the climatic conditions (rainy and dry seasons, etc) of the areas concerned.

The Detailed Design Report shall include a concise Design Statement, that provides a summary of all design standards, criteria and assumptions used to prepare the design, and the dates and scope of all survey and data collection activities. This shall be prepared in tabular form and act as an Executive Summary to the design report.

The main report shall fully detail:  horizontal and vertical alignment design including the identification of key constraints and considerations and mass haul calculations;  road pavement and drainage design including evaluation of whole life cost options;  Structural Reports for all bridge and structures design, covering issues of standardization, prefabrication, ease of construction and including annexed detailed design calculations for each major structure ; and  borrow pit, gravel pit and quarry identifications and design, including details of haul routes and materials distribution within the works.  Design of all roadway ancillary features (safety fencing, road marking, traffic signs, etc)  Provisional Traffic Management Plan  Summary of road safety audit findings and response

The report shall include a list, in each section, the relevant design standards followed and a Departures Report identifying all instances where these standards have been deviated from and the reason for such deviation.

The report shall include the estimated Construction Quantities, Cost Estimate and Economic Analysis of the presented design.

The report shall include a provisional traffic management plan detailing how motorized and non motorized traffic and pedestrians shall be accommodated during the construction phase.

The Consultant shall prepare the General Specification and also recommend specific options, or possibly additional options, which shall be incorporated into a Special Specification.

The Consultant shall further consider the sourcing of all major materials, sand, aggregates, bitumen, reinforcing steel, structural steel etc and determine whether Manufacturer's certificates concerning composition and strength will be obtainable or adequate and as such whether sampling and testing will be needed. In the latter case such testing must be covered in the

2.5 Scope of Work: Sector Solid Waste Management – Specific tasks

The scope of work covers but is not limited to: a. To conduct a random waste characterization study in the LAs b. To establish current status and baseline of solid waste management in the Local Authority c. Based on the above, analyze the technical, economic, environmental, financial and social feasibility for various components of solid waste management such as source segregation, collection, transportation, treatment and disposal by composting and landfill; d. To analyze the costs involved with complete breakups for the above methodologies of waste disposal for the Local Authority; e. To carry out on-site geological mapping of the site and investigate the topography, geomorphology, hydrogeology, stratigraphy and other geological characteristics like the porosity, permeability etc. which will have significant influence on the design criteria for various facilities to be provided in and around the area of waste disposal suggested; design of the landfill and other facilities proposed must meet the technical guidelines provided by the Central Environmental Authority (CEA);24 f. To identify clusters in addition to the Local Authorities mentioned for setting up common landfill facility based on cost benefit financial analysis and assess the feasibility of making such an arrangement; g. To develop a financial model in order to have a cost-effective transportation solution; h. Based on the above, work out cost-benefit analysis of individual Local Authorities involved in the cluster; i. To suggest an institutional framework for the construction, operation and maintenance of the regional landfill if found feasible; j. To prepare detailed designs, drawings, estimates and bid documents for the facilities that are required for effective operation of the disposal facilities and maintaining the environmental standards. k. To examine the possibility of posing the project for CDM potential and assist the LAs in obtaining the same by preparing the baseline parameters, PIN etc. and to analyze the financials of the LAs taking into account the above credits. l. Assist the Local Authority in obtaining clearances from various statutory authorities for developing the landfill and compost yard. m. Necessary approvals from the CEA, if required, would be obtained by the local authorities with necessary support from the consultants.

The consultants are required to carry out the following tasks in line with National Solid Waste Management Policy and CEA guidelines, others rules and regulations.

(As envisaged at present the designs of Solid Waste Management subprojects are undertaken by the National Solid Waste Management Support Centre. If required the consultant should be able to take up the design work of the solid waste management subprojects)

2.6 Scope of Work – Public Buildings / Local Authority Facilities: Specific tasks

2.6.1 General

The designs shall conform to relevant/ latest applicable National Standards25, building codes, building regulations and CEA requirements. Wherever such standards are not available, appropriate

24Central Environmental Authority.Technical Guidelines on Solid Waste Management in Sri Lanka. 25The consultants shall specify the materials and workmanship based on ICTAD specifications for Construction and Maintenance of buildings, and any other internationally accepted specifications in the event of above specifications being inadequate.

standards shall be followed in discussion with the PMU. The overall design would cater for a period as defined as per national planning norms.

2.6.2 Surveys and Investigations:

a) Data Collection: Collecting and updating information regarding existing levels of the proposed subproject and ascertain the necessity of the same by carrying out an inventory of existing systems / facilities. All required data shall be collected to design and construct basic utilities such as water supply and sewer pipes, storm water pipes and drains, development of ground water source including rain water harvesting, electrical network with back up supply, fire detection / protection system, incorporating Green Building Concept etc. (The details given in the technical conditions and specifications taken in conjunction with the pre-feasibility study, is only a reasonable preliminary basis. The nature of the overall contract is such that after the proposal, the consultant shall be wholly responsible for all the details of the proposal, the physical and site conditions, the execution methodology etc. All data utilized in preparation of the proposal shall be presented indicating the sources of the data and also the basis of assumptions, if any. The consultant shall be responsible for all the data or designs and drawings given by them)

b) Topographical Survey: Detailed topographical survey of the site, along with Contour survey at the required contour intervals, as approved by the Client, in and around the subproject site. The local body shall indicate the Project sites and their measurements. The survey shall include all necessary data related to the existing public utility services, lines of streets and pavements, building lines, adjoining properties, position of lights, restrictions, basements and boundaries to design the Sewerage and Strom water drain system. The consultant shall be responsible for the survey of the areas and preparation of necessary survey maps.

c) Soil Investigation and Tests:Soil tests as per relevant National Standards have to be conducted and necessary reports prepared by consultants to arrive at design parameters including safe bearing capacities. Also, conduct soil test, Hydro geological survey and such other tests required to provide essential design data from sub-soil conditions. The Consultant shall interpret the soil investigations report and design the appropriate type of foundation for the Building, in consultation with the Client. The bore holes should normally be taken to a depth as acceptable to national design norms. The subsurface water at each borehole should be sampled and a chemical analysis carried out, to recommend appropriate cement mixture ratios for use in the foundations. Recommendations of a geo technical expert should be

The consultant is required to comply with British Standards / Codes of Practices for the designs or accepted international standards. The British Standard Codes of Practices will govern the structural designs. In case any other code of practice is used in the design, the designer is required to furnish a comparison between the British Codes provision and the code being used in the design. The British Standards will be treated as the basic minimum required and any other standard is required to be proved higher than the British Code requirements. The main applicable British Standards that the design has to conform to are listed below for easy reference. However, the design has to conform to all other non-listed British Code of practice that is relevant to the design standards.

(a) Design loads: Design loading for buildings B.S.6399 Part I Basic data for wind loads C.P.3 Chapter V – Part 2 And manual “Design of Building to High Winds – Sri lanka” (b) RCC Structure Design: Structural use of concrete BS 8110 Parts 1, 2, 3 (c) Structural Steel Design: Structural use of steel works in BuildingsBS 5950 Part 1 to 9 (d) Design of Foundations Code of practice for foundationsB.S. 8004 (e) Code of practice for protection of structuresAgainst water from the groundB.S. 8102 (f) Earth retaining structure designs: Code of practice for earth retaining structures B.S. 8002 (g) Aqueous liquid retaining structures- Design of concrete structures for retainingAqueous liquidsB.S. 8007 (h) Specification for Hot Rolled Steel B.S. 4443 (i) Specification for cement B.S. 12

furnished in the soil report. It should cover aspects like appropriate soil stabilization measures if required.

2.6.3 Detailed Design (Architectural and Structural), estimates and Detailed Project Report

a) Prepare a site evaluation and analysis report with basic approach to circulation, activity distribution and interaction and external linkages and impact of existing and / or proposed development on its immediate environs.

b) For the given purpose and functional use of the respective sub-projects, proper design has to be developed. The consultants have freedom to choose the type of sub structure and superstructure, provided National code specifications and standards are met. The drawings and designs shall include a general arrangement drawing and a detailed longitudinal section drawing of all components in size A1 or A2. The level of detailing shall be such so as to enable check of conformance with code provisions, including detailed construction drawings. The responsibility of the preparation and issue of detailed construction drawings is that of the Design and Supervision Consultants.

c) Prepare conceptual designs, drawings and study model with reference to requirement definitions. Required drawings such as Architectural, structural, service drawings and design calculations for all designs shall be furnished by the consultant to the client for execution of work

d) Prepare detailed structural designs and drawings along with construction drawings with detailed design calculation.

e) Prepare Sanitary, Plumbing, drainage, water supply and sewerage system designs and drawings including solid waste management, Electrical, electronic, communication systems and internet system design and as required ventilation and air conditioning design (VAC) and other mechanical systems, solar water heating system, solar power system.

f) Design for Elevators, Escalators, etc if required.

g) Design for Fire detection, fire protection and Security systems and any disaster management systems as necessary etc.

h) Development works such as external sewer, water supply, drains, and culverts Roads, Street lights, Rainwater harvesting etc. all complete.

i) Use of environmental friendly and energy conservation concepts with minimum or no additional cost.

j) Vehicle parking layout for the entire site including site development and other infra structural facilities.

k) Detailed Engineering drawings26 for all the designs.

26 Preparation of architectural drawings including plans, cross sections, elevation etc to a scale of 1:100 or 1:50. Preparation of structural design based on appropriate engineering analysis of loads, stresses, deflection and strength of materials, including detailed statistical scheme and calculations. Preparation of drawings for sanitary installations to a scale of 1:100 or 1:50 and detailed drawings to a larger scale as may be found necessary to enable the construction of the works. Preparation of drawings of electrical installation as required for lighting and services to a scale 1:100 or 1:50 and detailed drawings to a larger scale as may be found necessary to enable the construction of the works.

l) Prepare drawings, layout etc., and necessary for submission to statutory bodies for sanction for obtaining approval / Licenses. The client will make necessary applications. The Consultant shall carry out all the works together with the necessary drawings and other particulars for obtaining all statutory approvals from UDA/CEA etc or other agencies. in addition, shall assist the client to get necessary approvals. m) The services will include structural, architectural designs of the buildings taking into consideration of Earth Quake Resistance and other Disaster effects, designs of all external and internal services, including air conditioning (HVAC), lifts, escalators, electrical, mechanical, fire fighting and safety systems, public address system, access control, telephone exchange, communication tower, water supply, furnishing fit out, sewerage disposal, internal roads, arrangements for special security systems, Integrated Building Management System and monitoring of all works during the construction as required. n) Based on the surveys and designs evolved by the consultants, within the framework and the requirements of the project, the consultants have to prepare detailed specifications, detailed item and quantity schedules. Prepare detailed cost estimates using the latest provincial schedule of rates. Estimate associated costs such as road restoration charges/ shifting of utilities, quality tests, resettlement etc.(as applicable) There should not be any lump sum items for work related items in the bill of quantities. For items not covered under schedule of rates, market rates to be assessed.(Necessary documents on quotations received should be made for assessment of market rates. This will be subject to scrutiny and approval of client) o) Prepare and submit complete set of working drawings for all works and details sufficient for proper execution of works during construction. All the drawings and reports, Manuals, to be furnished in both soft and hard copies, duly attested. The Consultant shall be fully responsible for accuracy of all the data, rate analyses for items of work used in the Project preparation, Cost Estimates and design irrespective of the fact whether the same has been examined and approved by the Client or not. p) For concepts, plans of the project and preliminary project report covering various aspects of projects such as buildings and fire fighting, electrical works, air-conditioning works, roads, drainage, water supply, sewerage and pavements etc. shall be prepared by the consultant to suit requirements and meeting statutory/mandatory provisions for the project as a whole and whereas the Architectural consultant shall have meetings with SPCU and LA to finalize the general as well as specific requirements. q) All works shall be done in conformity with relevant National Standards specification, National Building Code, Standard Specification for Roads and Bridges and to the requirements of statutory bodies, local byelaws and accepted Government procedures. r) The consultant shall conduct his own studies and prepare estimates based on Provincial schedule of rates. The PMU, SPCU as well as the LA concerned and Project Management Consultants shall not be responsible (except as to risks specifically accepted under the conditions of contract) for the validity of the project details and designs and estimates. s) Prepare a Detailed Project Report incorporating all details of the Project as above. t) The consultants shall assist the Local Authority in obtaining approval of plans and estimates (approval of Plan and estimates and bid documents) from competent authorities like LA, TEC (Technical Evaluation Committee) etc.

Preparation of water supply, sanitary and storm sewer line drawings to a scale 1:100 or 1:50 and detailed drawings to a larger scale as may be found necessary to enable the construction of the works, as well as septic tank details (with calculations), and overhead tank, if required.

General

The Terms of Reference given are General DSC would take up all the work on design and supervision for successful implementation of the project notwithstanding the text of the Terms of Reference.

4. Other responsibilities of the DSC:

a) The DSC should ensure that the sub-projects taken up for implementation are in line with approved criteria as detailed in Project Administration Memorandum (PAM) b) The DSC will assist SPCU in completing the following check lists to be sent to PMU along with the Detailed Project Report, Estimates and Bidding Documents. c) The DSC should assist the LA and SPCU on implementation of the consultation and participation plan as in PAM and RRP (Report of Recommendation of the President) d) The DSC should assist the Project Authorities in implementation of the Gender Action plan as given in PAM / RRP e) DSC should follow the coding and packaging as prepared for the Project.

Appendix 5 101

APPENDIX 5: CONSULTATION AND PARTICIPATION PLAN

Introduction

As argued by the proponents of sustainable development, any interventions on natural resources management, governance, and infrastructure development must be transparent, accountable, representative, and participatory. In the recent past the ‘participation’ of all the stakeholders including the beneficiaries of development initiatives has become an integral component and essential aspect of projects and programs. In other words, to work effectively and development projects to be successful, civic engagement in governance is crucial. The incorporation of planning practices in the Local Authorities and incorporation of this activity as part of project process is a change from the ongoing project supported by ADB for local authorities. The scope of the process is in terms of involvement of all stakeholders such as groups or individuals who are either benefited or affected by a policy / project or those groups or individuals who can affect the policy / project. Stakeholders can be individuals, communities, social groups, organizations, etc. Generally the poor and the marginalized (women, children, elderly, disabled, orphans, landless laborers) are often ignored either because they are unaware and not consulted or because they do not have a forum to express their views.

Identifying and consulting all stakeholders, especially the marginalized / vulnerable is important to ensure that a project meets the need of all sections of the people. Further, consultations open up the line of communication between the various stakeholders and the project implementing authorities, thereby aiding the process of resolving conflicts at early stages of the project rather than letting it escalate into conflicts resulting in implementation delays and cost overrun. Participation of the local community in decision- making will help in prioritizing projects and identifying cost effective measures in mitigating adverse impacts and evolve ownership to the assets created through the interventions. There are also needs and possibilities of participation beyond implementation.

Consultation and Participation Strategy and Plan

Consultations for sample subprojects were held during the PPTA stage with affected households, beneficiaries of subprojects, elected representatives and other stakeholders. Further, consultations were held during the socio-economic surveys undertaken in sample sub-project towns and census surveys undertaken to assess the magnitude of involuntary resettlement in each sub-project. The projects proposed by Pradeshiya Sabhas for assistance from ADB aim at improving access to growth and social services, environmentally sound health and sanitation practices and contribute to overall development of the local authority.

Improving provision for water supply, sanitation and other essential forms of infrastructure and services must be based on an understanding of the needs and priorities of those who, within households, are responsible for water collection, sanitation, disposing of solid waste and other daily necessities. In most instances these responsibilities fall on women who are rarely consulted. Further, the poor who do not have a forum to express their needs are often not consulted in projects and schemes that aim at improving their standard of living. Keeping this in mind, the government as part of the Project, has developed a consultation and participation plan from the sub-project identification stage through the implementation stage (Table 1) and possible options of participation in operation and maintenance (O&M) of localized facilities.

While the project identification will be on an inclusive basis, in line with the proposed amendment to legislation, the government intends to mainstream participation by women and youth. Besides improved planning, the project would also enhance planning by participatory methods which would possibly extend to O&M.

102 Appendix 5

Table .1: Consultation and Participation Plan

Project Cycle Target Group Consultation Consultation and Participation Indicators Sources of Responsibility Tools Topics Verification

Planning Stage  Beneficiaries . Focus group . Overview of the proposed . Number of  Summary of  Local including women, discussions project and interventions consultation consultations Authority youth, and . Definition of issues and sessions carried out with each (Assisted marginalized constraints in access to for various group. by PMU, social groups services and resources stakeholder groups SPCU, . List of needs and initial including number of DSC)  Elected . Council level Baseline indicators in prioritization participants relation to select DMF representatives / meetings and . Reform Plan targets leaders of Local presentations . Number of comments/suggesti Authorities (LAs) ons received and  Civil Society . Key informant converted into Organizations- interviews with actions/ projects Women’s leaders . Base line indicators society/ youth` in relation to select DMF targets associations, . At least 15% Others as participation by identified women (target)  Local registered . Focus group NGO’s discussions  Traders . Focus group association discussions  Academic . Focus group institutions discussions  Elected . Class room . Orientation/training of local . Number of leaders  Summary of representatives / discussions for authorities’ leaders in of LAs trained Orientation. leaders of Local orientation and participatory approaches, Authorities (LAs) training decision making and M&E

Sub-project  Beneficiaries . Focus group . Overview of service . Number of  Note on  Local identification including women, discussions requirements consultation Views Authority stage youth, and . Information . Sub-project selection criteria sessions carried out received and (assisted marginalized leaflets about . Reason for prioritizing the for various incorporated by PMU,

Appendix 5 103

Project Cycle Target Group Consultation Consultation and Participation Indicators Sources of Responsibility Tools Topics Verification

social groups sub-project sub-project stakeholder groups into the SPCU and benefits . improvements / benefits including number of selection of DSC) . Newspaper envisaged participants sub-projects articles . User contribution

seeking requirements

feedback . Implementation schedules

. Open house and arrangements

meetings . Willingness to pay  Elected . Key assessments representatives / informant . Possibility of community participation in O&M leaders of LAs interviews

. Information leaflets about subproject and benefits . Open house meetings  Civil Society . Information Organizations- leaflets Women’s about sub- society/ youth project and associations , benefits Others as . Open house identified meetings  Local registered . Information NGO’s leaflets about subproject and benefits . Open house meetings  Traders . Information association leaflets about subproject and

104 Appendix 5

Project Cycle Target Group Consultation Consultation and Participation Indicators Sources of Responsibility Tools Topics Verification

benefits . Open house meetings  Academic . Information institutions leaflets about subproject and benefits . Open house meetings Sub-project . Beneficiaries including . Focus . Summary of reports . Number of  Note on  Local design stage women, youth, and group (DPR/IEE/RP/IPP) consultation . Views of Authority marginalized social discussions . Design criteria sessions carried out participants (assisted groups . Newspaper . alternatives considered for various . No. of objections/ by PMU, . Elected representatives articles . project components stakeholder groups suggestions SPCU / Leaders of LAs seeking involving land acquisition including number of received and action DSC) feedback mitigation measures participants taken . environmental impacts and . Baseline indicators . Open house . Agreement on O&M mitigation measures in relation to select meetings arrangements . cost of the project likely DMF targets . Household questionnair charges, if any . Draft agreement e . Specific arrangements for documents involvement of communities in O&M, if appropriate  Affected . Focus . Summary of reports  No of consultations . Views of households group (DPR/IEE/RP/IPP) held participants discussions . Design criteria . No of objections/ . Household . alternatives considered suggestions questionnair . Extent of land acquisition received and action e and mitigation measures taken . Proposed resettlement and . Feedback on rehabilitation measures, if rehabilitation and any restoration measures Sub-project . Elected representatives . Focus . Progress of implementation . Number of . Views of  Local implementation /Leaders of LAs group . Temporary impacts / discomfort consultation participants / Authority stage . Interest groups discussions to public sessions carried out grievances received Contractor Appendix 5 105

Project Cycle Target Group Consultation Consultation and Participation Indicators Sources of Responsibility Tools Topics Verification

including women’s . Monitoring . advance communication for various and action taken PMU / SPCU groups and vulnerable surveys about civil work schedule stakeholder groups report. DSC groups . Periodic . Quality and adequacy of including number of . Civil Society open house environmental and social participants Organizations- meetings mitigation measures Women’s society/ . Newspaper undertaken youth associations , articles . Share design changes, if any Others as identified . Display of . reason for the same . Local registered NGOs project . alternatives considered . Traders association details on . Efficacy of the grievance . Academic institutions site. redressal system . Labor standards and safety measures . Awareness measures . Sanitation and water conservation . HIV AIDS and other communicable diseases . Formulation of user/community groups responsible for O&M . Affected households . Focus . Grievance redressal . Report on grievance group mechanisms redressal and discussions . Temporary impacts review actions on temporary impacts. . User Group . Focus . O&M issues, structure of . Consultations held . Minutes of group arrangement and agreements . Formulation of consultation discussions . necessary . Agreements on committees and O&M arrangements selection of key staff Post Project . Beneficiary . Structured . O&M issues / Management by . No of project/  Notes on  Local Implementation Communities meetings user/community groups- in activities transferred . Beneficiaries Authority . Focus small / localized community . Performance in perception of project and group infrastructure and Polas terms of efficiency benefits Communi discussions . Satisfaction levels of O&M . Feedback Reports ty/ User . Individual . Performance in relation to DMF . Community Groups interviews targets satisfaction

106 Appendix 5

Project Cycle Target Group Consultation Consultation and Participation Indicators Sources of Responsibility Tools Topics Verification

Monitoring and . Beneficiary . Individual . Participation in evaluation: . Numbers of local  Note/ report  LA in Evaluation Communities interviews feedback to the Local Authority leaders who . Facility specific consultati . User groups . Focus group on benefits participated in M&E performance on with . Elected representatives discussions . Monitoring service delivery activities . Progress on reforms beneficiar / Leaders of LAs . Impacts on women and . Impacts on women y vulnerable amongst the and vulnerable communit beneficiaries / user groups groups ies and . Progress on Reform Plan user . Comparison with DMF Targets groups

DMF= design and monitoring framework, DSC = design and supervision consultant, DPR = detailed project report, IEE = initial environmental examination, IPP = Indigenous Peoples Plan, LA = local authority, M&E = monitoring and evaluation, O&M = operation and maintenance, PMU = project management unit, PPTA = project preparatory technical assistance, RP = resettlement plan, SPCU = subproject coordination units. Appendix 6 107

DESIGN AND MONITORING FRAMEWORK

Design Performance Targets and Indicators with Data Sources and Assumptions and Summary Baselines Reporting Mechanisms Risks Impact Assumptions Local authorities’ By 2018, measures of backwardness in MLGPC’s assessment Improvements in other capacity participating local authorities reduced by 10 study infrastructure (e.g., financially and points on average from 2010 scores, which education, power supply, technically averaged 129.6a and provincial roads) are strengthened in made. less-developed By 2018, annual revenues of participating local MLGPC’s assessment areas of seven authorities in seven provinces increased by study Macroeconomic and provinces in Sri 20% in real terms from those in 2010 political stability is Lanka sustained.

A coherent policy and regulatory framework for devolution and decentralization is in place.

Outcome Assumptions Improved local By the end of 2015: Fiscal transfer from the infrastructure and Travel time to markets reduced by 20% on Project-specific evaluation central government services average in local authorities implementing road survey continues at least at the delivered subprojects (27 minutes in 2011 in the sample same level. effectively by local authorities)b local authorities Population served by piped water systems Project-specific evaluation Local authorities obtain increased by 20% on average in local survey adequate financial and authorities implementing water supply technical capacity for subprojects (27% in 2011 in sample local operation and authorities)b maintenance.

New systems and processes introduced for Project progress and Risks taxation, licensing, and approval as a result of completion reports issued Local authorities fail to business process reengineering by MLGPC closely implement reform plans. Final accounts of participating local authorities Audit reports issued by audited within 6 months from the end of fiscal the Auditor General’s Government approval for year (baseline: delay in preparation of final Department introducing the new accounts and audits) business processes is delayed. Outputs Assumption 1. Improved local By the end of the project: Necessary technical infrastructure support will be obtained and basic Improvements of water supply schemes in 10 Project progress and from the National Solid service delivery local authorities (6,000 households newly completion reports issued Waste Management served) by the MLGPC Support Center, the

National Water Supply Improvement of solid waste management and Drainage Board, and systems including composting in 40 local the Ministry of Health. authorities

As the selection of The construction or improvement of 15 subprojects is demand- kilometers of local roads driven, actual subsector

allocation may be The construction or improvement of 25 public different

primary health-care facilities from the original estimate. The construction or improvement of 40 public markets Alternative funding

108 Appendix 6

Design Performance Targets and Indicators with Data Sources and Assumptions and Summary Baselines Reporting Mechanisms Risks sources become Local authorities implement subprojects available without particularly benefiting women, such as commitment to reform or maternity health centers its implementation.

Public facilities financed by the project have separate toilets for men and women

Women represented in the planning committee of local authorities in 50% of participating local authorities Assumption 2. Advanced By the end of the project: Amendments to local local government ordinances government Bylaws and regulations prepared in accordance Project progress and and acts are approved policy reform with the amendments of acts and ordinances completion reports issued as planned. and related to the local government by the MLGPC strengthened capacity Bottlenecks in current tax, licensing, and Risks approval systems of local governments Periodic valuation of analyzed and necessary improvements properties by the proposed Valuation Department, which will be reflected in IT system developed, including the updating the tax database, may and computerization of databases on taxes, not be carried out on licenses, and financial accounting and asset time. management system in select local authorities in seven provinces Assumption 3. Project Timely and effective support provided for Project progress reports Organizations are management smooth project implementation issued by the MLGPC effectively coordinated at and the center and locally. administration PMU and SPCUs fully staffed on time Project progress reports +supported Quarterly progress reports of satisfactory quality Project progress reports submitted on time

Sex-disaggregated data pertaining to project Project performance activities are collected and reflected in the management system project performance management system.

Project staff trained on gender and social Project progress reports inclusion (disaggregated by sex) Activities with Milestones (Initial Plan) Inputs 1. Improved local government infrastructure and basic service delivery 1.1 Participating local authorities make a plan and identify priority subprojects, Project: $68.77 million assisted by project preparatory TA consultants (August–November 2011) Item Amount 1.2 SPUCs and PMU review subprojects (November 2011–February 2012) ($ million) 1.3 Recruit design and supervision consultants (November 2011–June 2012) 1.4 Prepare feasibility studies, detailed design, and bid documents (July 2012– ADB 59.00 June 2013) Government 9.77 1.5 Undertake procurement of contractors for civil works and equipment (January– December 2013) 1.6 Implement civil works and procurement of equipment (May 2013–December 2014) 1.7 Provide post-construction support (June 2014–June 2015)

2. Advanced local government policy reform and strengthened capacity Appendix 6 109

Design Performance Targets and Indicators with Data Sources and Assumptions and Summary Baselines Reporting Mechanisms Risks 2.1 Recruit consultants for data updates and entry regarding taxes and licenses (July 2012–February 2013) 2.2 Consultants carry out data updates and entry (February–December 2013) 2.3 Undertake bidding for development of IT system (July 2012–February 2013) 2.4 Develop IT system (February–December 2013) 2.5 Implement the new system and business processes (January–December 2014) 2.6 Evaluate implementation of new systems and processes (January–June 2015) Capacity development TA 2.7 Recruit consultants (August 2011–March 2012) 2.8 Review existing taxation, licensing, and approval systems and processes for Technical Assistance $640,000.00 government review (April–September 2012) 2.9 Review software developed by the Information and Communication Item Amount ($ ‘000) Technology Agency of Sri Lanka (April–September 2012) 2.10 Draft bylaws and regulations for streamlining and improvement (April–June ADB 540.00 2013) 2.11 Provide support for implementation of the new system and business Government 100.00 processes (January–December 2014)

3. Project management and administration supported 3.1 Assign core staff in the PMU and the SPCUs (September 2011) 3.2. Complete full staffing of the PMU and the SPCUs (February 2012) 3.3 Recruit project management consultant assisted by project preparatory TA consultants (August 2011– March 2012) 3.4 Local authorities prepare reform plan assisted by project preparatory TA consultants (August–November 2011) 3.5 SPCUs and PMU review reform plans (November 2011–February 2012) 3.6 Develop project performance management system (August 2012) 3.7 Undertake project management and administration (continuous until June 2015) 3.8 Undertake project-specific evaluation survey (October 2014–March 2015) 3.9 Monitor reform plan implementation (February 2012–June 2015) ADB = Asian Development Bank, IT = information technology, MLGPC = Ministry of Local Government and Provincial Councils, PMU = project management unit, SPCU = subproject coordination unit, TA = technical assistance. a Based on an evaluation by the Ministry of Local Government and Provincial Councils. b Baseline surveys of 1,000 households in 10 local authorities were undertaken under project preparatory TA. Source: Asian Development Bank.