Grant Implementation Manual
anka JFPR Number: 9111 February 2008
Republic of Tajikistan: Sustainable Access for Isolated Rural Communities (Financed by the Japan Fund for Poverty Reduction)
Asian Development Bank
CURRENCY EQUIVALENTS (as of 22 October 2007)
Currency Unit – somoni (TJS) TJS1.00 = $0.290250 $1.00 = TJS3.44
ABBREVIATIONS
ADB – Asian Development Bank CBO – community-based organization GDP – gross domestic product GIM – grant implementation memorandum IEE – initial environmental examination JFPR – Japan Fund for Poverty Reduction JRC – jamoat resource and advocacy council MOF – Ministry of Finance MOTC – Ministry of Transport and Communications NCB – national competitive bidding PIU – project implementation unit PRC – People’s Republic of China TA – technical assistance UNDP – United Nations Development Programme
GLOSSARY
jamoat – village cluster (the lowest administrative division) Rayon – District
NOTES
(i) The fiscal year (FY) of the Government of Tajikistan ends on 31 December.
(ii) In this report, “$” refers to US dollars.
This Report was prepared by Hee Young Hong. Financial Analysis Specialist/Team Leader and Ana Maria A. Ignacio, Operations Officer, Central and West Asia Infrastructure Division
TABLE OF CONTENTS
MAP i GRANT PROCESSING HISTORY ii
I. GRANT DESCRIPTION 1 A. Grant Area and Location 1 B. Grant Objectives 1 C. Grant Components 1
II. COST ESTIMATES AND FINANCING PLAN AND 4 ALLOCATION OF GRANT PROCEEDS
III. IMPLEMENTATION ARRANGEMENTS 5 A. The Executing Agency and Implementing Agencies 5 B. Grant Organization and Management 5 C. Participatory Approach 6 D. Coordination with Other Donors 7
IV. IMPLEMENTATION SCHEDULE 7
V. PROCUREMENT 9
VI. CONSULTING SERVICES 9
VII. DISBURSEMENT 10
VIII. REPORTING REQUIREMENTS 10 A. Progress Reports 10 B. Audited Grant Accounts 10 C. Benefit and Monitoring Evaluation 11
IX. GRANT MONITORING AND EVALUATION 11 A. Contract Awards/Commitments and Disbursement Projections 11 B. Grant Reviews 12 C. Midterm Review 12 D. Implementation Completion Memorandum (ICM) 12
X. COVENANTS 12
APPENDIXES
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GRANT PROCESSING HISTORY
1. Submission of Application : 31 May 2007
2. Appraisal : 14–17 February 2007
2. SRC : 25 May 2007
3. Board Approval : 23 October 2007
4. Signing of Letter of Agreement : 30 November 2007
5. Closing Date of Grant : 31 May 2010
LIST OF ADDRESSES AND PERSONNEL CONCERNED
A. ADB Staff
Infrastructure Division (CWID) : Hong Wang Central and West Asia Department (CWRD) Officer-in-Charge, CWID Fax: (632) 636 2428
: Hee Young Hong Financial Analysis Specialist Tel. (632) 632 6891 E-mail: [email protected]
: Ana Maria A. Ignacio Operations Officer Tel. (632) 632 6887 E-mail: [email protected]
Loan Administration Division (CTLA-2) : Yoshinobu Tatewaki Controller’s Department Financial Control Specialist
Address : Asian Development Bank 6 ADB Avenue Mandaluyong City 1550 Metro Manila, Philippine Facsimile : (632) 636 2428 (CWID) (632) 636 2444 Website : http://www.adb.org
v B. EXECUTING AGENCY & IMPLEMENTING AGENCY Executing Agency Ministry of Transport and Communications (MOTC)
Implementing Agency Mr. Nizom Hakimov, Executive Director Project Implementation Unit, Ministry of Transport and Communications Ayni 14, 73046 Dushanbe Tel: (992-372) 234158 Fax: (992-372) 5101275 E-mail: [email protected]
I. GRANT DESCRIPTION
A. Grant Area and Location
1. The project area will cover the isolated rural communities in the Rasht Rayon affected by thde flooding. A bridge and bridge approach-roads connecting Yangalik and Yahakpast villages will be rehabilitated and 14km rural road linking Yahakpast, Langary shoh, and the access road to Tajikabad center will be improved.
B. Grant Objectives
2. A bridge on the Surkhob River was washed away by a flood in August 2006. This resulted in the detouring of upto 80 kilometers (km) to access the main road to Dushanbe and Tajikabad center.
3. The Project will improve connectivity and mobility for economically marginalized rural poor thereby contributing to sustainable economic development and social stability. It will further support the self-sufficiency of the affected rural communities to be accountable for their infrastructure maintenance needs.
C. Grant Components
4. The components, monitorable deliverables/outcomes, and implementation timetable are described as follows:
Component A Component Name Restoring Sustainable Access for Isolated Rural Communities Cost ($) $1,462,590 (including contingencies) Component Description Component A will improve access of the rural communities affected by the flooding. The component will (i) rehabilitate an existing 241.8-meter (m) bridge connecting Yangalik and Yahakpast villages in Rasht rayon; (ii) construct 1.05 kilometers (km) of bridge approach-roads on each side of the Surkhob River; and (iii) improve the 14 km rural road linking Yahakpast, Langary shoh, and the access road to Tajikabad center.
Removal of the physical barrier to access will strengthen integration of the isolated rural poor. About 47,000 rural villagers in nine jamoats1 of Rasht and Tajikabad rayons2 will directly benefit from improved mobility, access, and communications. Increased poverty alleviation is envisaged by minimizing the potential long-term adverse impact on equitable socioeconomic development, while providing jobs and income opportunities.
1 Jamoat is Tajik for village cluster, the lowest administrative division. 2 Nine jamoats consist of five jamoats (Djafr, Kaznak, Khydjborak, Kalaysurkh, and Navdi) in Rasht rayon and four jamoats (Langary shoh, Kalay labyob, Shogadoev, and Nushor) in Tajikabad rayon. 2
Timely completion of a bridge, bridge approach-roads, and rural road will be the key success factor. Added value will be derived from (i) the mobilization of local resources, (ii) the provision of on-the-job training, and (iii) the introduction of good labor, construction, and maintenance practices. A positive impact on the incubation of small businesses and increased agricultural activities is also anticipated. Monitorable In Rasht rayon: Deliverables/Outputs - 241.8 m Yangalik–Yahakpast bridge rehabilitated. - 1.05 km Yangalik–Yahakpast bridge approach-roads constructed. - 14 km rural road linking Yahakpast, Langary shoh, and the access road to Tajikabad center improved.
Implementation of Major - 241.8 m bridge rehabilitation; 15 months Activities: Number of months for - 1.05 km bridge approach-roads construction; 5 months grant activities - Improvement of the 14 km rural road from the bridge to the Tajikabad center access road; 5 months
Component B Component Name Fostering Community-Based Maintenance Practices Cost ($) $261,600 (including contingencies) Component Description Component B will provide a sustainable infrastructure maintenance mechanism. The Project will build the capacity of key local stakeholders (i.e., local governments, community based organizations [CBOs], communities, and contractors) to carry out community-based maintenance works. It aims to promote proactive measures to plan, mobilize, manage, and utilize internal resources to address inadequate maintenance in the affected rural communities. Consultants will be engaged to promote participatory community-based infrastructure maintenance works through community mobilization and capacity development. The affected rural communities will be equipped with basic knowledge, skills, and equipment necessary for conducting day-to-day infrastructure maintenance and minor repair works. Implementation of community-based rural infrastructure maintenance works3 will be undertaken under the consultants’ supervision.
The Project integrates and catalyzes both the Asian Development Bank’s (ADB’s) and other donors’ activities in the vicinity of the project area.4 In particular, the intervention
3 Rural roads and river crossings in the project area will be identified and maintained. The types of maintenance works envisaged are (i) clearing drains, (ii) protecting against scour and erosion, (iii) re-profiling of the cross- section, (iv) repairing and reinstating signage, (v) filling potholes, (vi) sealing cracks on rural roads, (vii) cleaning, and (viii) river training. The maintenance works will start as soon as training and workshops are received by local governments, contractors and subcontractors, and rural communities. 4 There is ongoing assistance from the Government of Japan to support grassroots agricultural activities in Tajikabad. Ongoing ADB projects include the following: Ministry of Transport Republic of Tajikistan. 2005. TAJ: Dushanbe- Kyrgyz Border Road Rehabilitation Project. Dushanbe (Phase II) and the ADB. 2007. REG: CAREC Regional Road Corridor Improvement Project; and the ADB. 2005. Proposed Grant Assistance to the Republic of Tajikistan on
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anticipates replicating and reinforcing the decentralized operation and maintenance scheme established under the JFPR 9078-TAJ: Community Based Road Maintenance Project.5 The JFPR 9078 project addresses fiscal difficulties and institutional constraints associated with rural maintenance and formulates a sustainable institutional and financial structure in local communities. The Project will galvanize the use of such a scheme and the implied time and resource savings are deemed potentially large.6 Close collaboration, adaptive management skills, and efficient logistical coordination will be required to coordinate training and workshops and monitor the performance of existing activities under the JFPR 9078 project.
Monitorable - The decentralized community participatory scheme Deliverables/Outputs established under the JFPR 9078 project adapted and implemented. - At least 30 local governments, small scale contractors and subcontractors, and rural communities receive training and workshops. - At least four small-scale contractors trained for community-based infrastructure maintenance works and related activities. - Minimum five maintenance works and related activities on existing infrastructure (mainly rural roads and river and stream crossings) conducted.
Implementation of Major - 24 months Activities: Number of months for grant activities
Component C Component Name Supporting Project Management, Monitoring, and Evaluation Cost ($) $275,810 (including contingencies) Component Description Component C will ensure effective and efficient project implementation. With the support of consulting services, the following activities will be undertaken by the project implementation unit (PIU): (i) overall project planning, coordination, supervision,
Community-Based Rural Road Maintenance Project. Manila (financed by the Japan Fund for Poverty Reduction [JFPR]). UNDP-assisted CBOs may be engaged for various activities under the Project. 5 The JFPR project was approved on October 2005. It comprises (i) establishing a rural road planning network system, (ii) capacity building in community based maintenance work, and (iii) community based road maintenance work. The design framework of JFPR 9078-TAJ incorporates CBO’s experience and knowledge to strengthen community based maintenance. The design conforms with the recommendations developed under previous and ongoing loans and technical assistance (TA), in particular, ADB. 2005. Technical Assistance to the Republic of Tajikistan for Institutional and Policy Support to the Road Sector. Manila (TA 3602-TAJ). 6 Potential cost savings can be realized through the utilization of the following under the JFPR 9078 project: (i) participatory frameworks, rural road network plans, road maintenance manual, and maintenance funds scheme; and (ii) the extension of training and workshops to accommodate additional participants from affected rural communities.
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management, and reporting; (ii) the preparation of work plans and implementation guidelines and procedures for grant financing; (iii) an independent social and poverty impact assessment; and (iv) annual independent external auditing.
Additional staff will be engaged to the existing PIU to facilitate implementation. With the assistance of consultants, the PIU will (i) undertake proper dissemination of information and reporting to key stakeholders; (ii) recommend measures for project sustainability and refine the existing institutional, financial, and participatory scheme; and (iii) ensure that transparency and accountability mechanisms are in place.
Monitorable - Comprehensive and detailed work plan, implementation Deliverables/Outputs schedule, and guidelines prepared. - Effective construction supervision and fiduciary oversight in place. - Day-to-day project monitoring and evaluation undertaken. - Timely and quality-oriented reports prepared. - Independent auditor engaged to conduct annual financial and project audits.
Implementation of Major - 24 months Activities: Number of months for grant activities
II. COST ESTIMATES AND FINANCING PLAN AND ALLOCATION OF GRANT PROCEEDS
5. The total project cost is about $2.37 million equivalent. The Government’s contribution to the Project is estimated at $245,600 and the community contribution at $124,300. The costs are based on locally tendered prices and preliminary quantity estimates. Project cost estimate is in Appendix 1.
6. The financing plan for the Project is shown in Table 1:
Table 1: Financing Plan*
Funding Source Amount JFPR 2,000,000 Government 245,600 (in-kind contribution) Other Sources (communities) 124,300 (in-kind contribution) Total 2,369,900 Sources: Asian Development Bank, and Ministry of Transport and Communication estimates.
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7. The allocation of grant proceeds is shown in Table 2:
Table 2: Categories, Amounts, and Percentage of Expenditures*
Amount of Grant Percentage of Category (allocated in $) Expenditures 1. Civil Works7 1,286,800 64.34 2. Equipment and Supplies 22,060 1.10 3. Training and Workshop 600 0.03 4. Consulting Services 467,750 23.39 5. Project Management 36,000 1.80 6. Contingencies 186,790 9.34 Total 2,000,000 100.00 Sources: Asian Development Bank, and Ministry of Transport and Communication estimates.
III. IMPLEMENTATION ARRANGEMENTS
A. The Executing Agency and Implementing Agencies
8. It has been agreed between the Government of Tajikistan and ADB that the Ministry of Transport and Communications (MOTC) will be the Executing Agency of the Sustainable Access for Isolated Rural Communities Project (the Project), in close collaboration with the provincial and local governments. The Minister of MOTC will assume responsibility of the overall project management and oversight. The existing project implementation unit (PIU) established under previous and ongoing loans, the Japan Fund for Poverty Reduction (JFPR) project, and technical assistance (TA) will implement the Project on a daily basis.
9. EA shall administer the JFPR pursuant to an agreement ADB has entered into with the Government of Japan, and as provided in the approved JFPR Grant Proposal and the Letter of Agreement signed with the Government of Tajikistan.
10. EA, as the administrator of the JFPR fund for the Project, will recruit consultants to undertake Project components.
B. Grant Organization and Management
11. The PIU consists of a qualified executive director (appointed by the Minister), MOTC, and a technical support team headed by the chief technical advisor, with local government level counterparts. The PIU will (i) monitor the progress of day-to-day project implementation, (ii) prepare withdrawal applications, (iii) prepare project progress reports, (iv) maintain project accounts, and (v) supply financial records for annual project audits. The existing executive director, who is acceptable to the Asian Development Bank (ADB) and has adequate experience in project management, will assume responsibility for the overall project management, and a deputy executive director will be responsible for the day-to-day supervision of activities, including approval of contracts and payments. Three additional staff members—an engineer, financier and a bilingual assistant and interpreter—will be added to ensure sufficient capacity exists to carry out the Project as well as the ongoing ADB-financed road projects.
7 Civil works consist of four components: (i) bridge rehabilitation (associated costs of $867,410); (ii) bridge approach- roads construction ($128,706); (iii) 14 km of rural road rehabilitation ($290,684) financed by JFPR grants; and (iv) river crossing, bridge, and rural road maintenance ($100,000) to be financed by communities.
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12. A project manager will be appointed to (i) supervise project implementation, (ii) assess social and poverty impact, and (iii) administer the Project, including reporting to ADB and the Government according to the timeline determined in the approved work plans. The project manager must demonstrate adaptive management skills and efficient logistical coordination so that the existing maintenance scheme can be adapted and refined to meet the needs of the impacted rural communities. Logistical coordination and close collaboration with the JFPR 90788 project consultants and other key stakeholders is essential. The project manager should also monitor the previous and ongoing activities, progress, and performance in the sector. MOTC will offer office space for the Project in Dushanbe and local communities will offer office space in the field. The project manager will closely liaise with the PIU, community-based organizations (CBOs), jamoat resource and advocacy councils (JRCs), local communities, and contractors in the field, and will work intermittently in Dushanbe. The project manager will be supported by local consultants and may contract out services from CBOs and JRCs on an as- needs basis. The addition of the following support personnel is recommended: (i) an engineer with adequate expertise and experience in bridge and road engineering and supervision and contract administration, and (ii) a community coordinator (social and poverty specialist) to carry out social and poverty impact assessment and community outreach programs.
13. To strengthen project-level sustainability, local CBOs, such as JRCs with at least 3 years experience of community development programs, will be considered under the Project. The CBO should be legally authorized to sign procurement contracts and be able to follow approved ADB procurement guidelines and procedures. The Project will be implemented in close consultation and collaboration with (i) local governments with active community participation, and (ii) other stakeholders. The involvement of JRCs in various tasks, such as tendering and local community mobilization, will be beneficial for the Project. JRCs, engaged under contracts for the construction and maintenance works, will facilitate involvement and mobilization of the poor (including women) in local communities. The use of locally available materials for the construction of civil works will be highly encouraged.
C. Coordination with Donors
14. The Project is designed to complement a number of development projects in the area through close consultation with the Government and other stakeholders, including MOTC, Ministry of Finance, local governments, jamoat representatives, Embassy of Japan in Tajikistan, 9 Japan International Cooperation Agency (JICA), United Nations Development Programme (UNDP), World Bank, National Social Investment Fund of Tajikistan,10 CBOs, and JRCs. 11 To promote participatory and joint decision making, the Project will work through representative CBOs and JRCs as the primary interface between the PIU and the affected rural communities. ADB will also monitor the overall project progress and provide guidance through missions.
8 ADB. 2005. Technical Assistance to the Republic of Tajikistan for Institutional and Policy Support to the Road Sector, Manila (TA 3602-TAJ). 9 Mr. Yuji Suzuki, Third Secretary, Embassy of Japan in the Republic of Tajikistan, was closely engaged throughout the project design. 10 The umbrella organization for the World Bank’s grassroots initiatives. 11 JRCs are at the core of UNDP’s implementation of local development projects to promote community representation, participation, and ownership in all aspects of development assistance.
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IV. Implementation Schedule
15. The Project, including mobilization, will be implemented over 30 months from December 2007 to May 2010. Project preparation for construction of the bridge and bridge approach-roads and improvement of the rural road under component A is expected to start in December 2007. Contractor and community training will simultaneously take place on an intermittent basis for the duration of the Project. Rural road maintenance works will commence as soon as training and workshops are received by the participants. Training and workshops will be scheduled according to the progress of the JFPR 9078 project. The civil works for the bridge and rural roads are scheduled to be implemented in accordance with ADB guidelines over 24 months starting in April 2008 and be completed in March 2010. The detailed implementation schedule in Appendix 2 will be updated during the mission.
V. PROCUREMENT
16. All procurement under the Project will be conducted by the PIU in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). National competitive bidding (NCB) will be used as shown in Appendix 1: Detailed cost estimate. The estimated cost of each contract package should be less than $10,000 and designed to use local labor as far as is practical. Safety equipment, such as mobile signage and protective clothing, will be procured under the Project for less than $10,000.12 For contracts above $10,000, competitive bidding and preapproval by ADB is required. Road maintenance contracts will be structured to maximize the use of local labor and materials. Local small-scale contractors with expertise and training in labor-intensive construction and maintenance will be preferred and engaged by the PIU with the assistance of the project manager. Appendix 3 shows the Procurement Plan and the list of contract packages. The NCB Annex to Loan Agreement is in Appendix 4 and a chart on procurement under NCB is attached as Appendix 5.
VI. CONSULTING SERVICES
17. International and local consultants will be engaged individually by the EA in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time) and with no objection from ADB. Consulting services will be conducted over 24 months, requiring approximately 21.5 person-months of international and 26 person-months of domestic consultancy. The international consultant will be appointed as project manager. The terms of reference for consultant services are attached in Appendix 6. A chart on the engagement on individual consultant is provided in Appendix 7.
VII. DISBURSEMENT
18. Flow of funds arrangements are summarized in Appendix 8. To facilitate disbursements, an imprest account will be established by the PIU at a commercial bank acceptable to ADB, in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Disbursements from the imprest account will be supported by an appropriate withdrawal application and related documentation. Such documentation will demonstrate, among other things, that the goods or services are (i) produced in and procured from ADB member countries, and (ii) eligible for JFPR financing. The initial amount to be deposited in the account will not exceed $70,000. The total advance at any time to the account is not to exceed $300,000, which
12 The limit can be increased to $20,000 if the community has previously implemented a project successfully.
8 is the estimated average expenditure for 6 months. For eligible expenditure with individual payment not exceeding $5,000, the statement of expenditures procedure will be used when liquidating and replenishing the imprest account. Disbursement procedures, to include establishing and operating the imprest account, preparing withdrawal applications and financial reporting, including SOE and related forms are in Appendix 9. A sample withdrawal application is in Appendix 10.
19. Village Maintenance Funds. Similar financial arrangement as those existing under the JFPR 9078 project will be adopted. In order to secure funding for operation and maintenance, a cash contribution from the community will be required, and this will become an initial village maintenance fund. The CBOs should submit a clear statement of understanding and responsibilities to the PIU before receiving any contract approval from the PIU. A written agreement will be reached between the CBOs and the local beneficiaries to ensure commitment to cash or in-kind contributions to complementary maintenance activities and subsequent maintenance in the project area. Clear screening methods and cost-effective criteria (taking the type of road, bridge, stream, or river crossing, and other relevant factors into consideration) will be developed during project implementation through stakeholder consultations and discussions. To maximize community participation, contracts will normally apply to 3–5 km of road, and the maximum for any single contract will normally be 10 km.
VIII. REPORTING REQUIREMENTS
A. Progress Reports
20. The project manager will prepare quarterly, semiannual, and annual reports on project implementation, the form and content of which will be agreed with ADB. The PIU, through MOTC, will officially endorse these reports to ADB with its comments. All reports will comprise an assessment of the Project’s social and poverty impact and outputs, benefit monitoring, and recommendations for improving implementation. Reporting requirements are in Appendix 11.
B. Audited Grant Accounts
21. MOTC will maintain separate accounts for all project components financed by JFPR and the Government and have them audited by an independent auditor with adequate knowledge and experience of international accounting practices and acceptable to ADB. The audited project accounts and the auditor’s reports, which will include a separate opinion on the use of the imprest account and the statement of expenditure, will be furnished to ADB within 6 months of the end of each fiscal year. The Government has been informed of ADB’s requirement for the timely submission of audited project accounts and financial statements, including the suspension of disbursements in case of noncompliance. Through the Project, JFPR will also finance annual audits through an independent auditor acceptable to ADB. Guidelines for the preparation of the audit report and auditor’s opinion are provided in Appendix 12.
C. Benefit and Monitoring Evaluation
22. A preliminary set of indicators for monitoring and evaluating the performance of the Project was agreed with MOTC during project preparation and provided in Appendix 13. ADB and the EA will discuss these indicators in detail during the inception mission. At the beginning of project implementation, the project manager will collect and confirm baseline indicators for social, environmental, and poverty reduction impacts. The project manager will also measure monitoring indicators during project implementation. Suggestions and recommendations of
9 project indicators will be incorporated by the PIU and MOTC and updated in every other quarterly report to ADB. The indicators for project evaluation will be established and measured at project completion. Gender-disaggregated data will be provided in the project area. Participatory surveys will be conducted, and results will be compared with the baseline to ensure the participatory community-based approach is complied with throughout the project life. MOTC will also be engaged in monitoring and evaluation as it has accumulated sufficient experience in project monitoring through various ADB projects. Performance monitoring system guidelines are also included in Appendix 13.
23. Consultants will identify and link specific project activities to particular poverty impacts, since impact on poverty may be a combination of various development activities in the project area. To attribute particular impacts to the Project, adequate control mechanisms will need to be established. The techniques of matching samples with and without the Project, and of differences before and after the Project, will be used to measure the project’s specific poverty impact.
IX. GRANT MONITORING AND EVALUATION
A. Contract Awards/Commitments and Disbursement Projections
24. Projected disbursements are shown below:
Fiscal Year (FY) Amount ($) FY 2008 800,000 FY 2009 800,000 FY 2010 400,000 Total Disbursements 2,000,000 Source: Asian Development Bank estimates. (revised as of 11 February 2008)
B. Grant Reviews
25. The ADB and EA will conduct two grant reviews each year to assess overall physical progress of JFPR project components, including performance of PIU, consultants and NGOs, and contractors, problems encountered, and recommend necessary remedial actions.
C. Midterm Review
26. The Government and ADB shall carry out a midterm review during the second year of implementation or at any other time as agreed by the parties. The midterm review shall identify changes since the time of appraisal of the JFPR Project, assess implementation performance against Grant performance indicators, assess compliance with agreements, identify problems and constraints and recommend appropriate corrective measures.
D. Implementation Completion Memorandum (ICM)
27. Within 3 months after physical completion of the JFPR Project, the Government shall prepare and furnish to ADB an Implementation Completion Memorandum, in such form and in
10 such detail, as ADB shall reasonably request, on the accomplishment of the purposes of the JFPR Assistance. The format and instructions in preparing the ICM are in Appendix 14.
X. COVENANTS
28. The Government shall carry out the JFPR Project with due diligence and efficiency, and shall cause the JFPR Project to be carried out by the EA and IAs in accordance with the arrangements described in the Letter of Agreement shown in Appendix 15.
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APPENDIXES
No. Title Page Cited on page, para 1. Cost Estimates 12 4,5
2. Implementation Schedule 17 7,15
3. Procurement Plan 18 7,16
4. National Competitive Bidding (NCB) Annex to Loan Agreement 20 7,16
5. Procurement Under NCB 22 7,16
6. Outline Terms of Reference for Consultants 23 7,17
7. Engagement of an Individual Consultant 27 7,17 for an ADB-financed Project
8. Fund Flow Arrangement 28 7,18
9. Disbursement Procedures 29 7,18
10. Instructions for Preparing Withdrawal Application for Imprest Fund 37 7,18
11. Reporting Requirements 40 8,20
12. Audit Requirements and Guidelines 42 8,21
13. Performance Monitoring System Guidelines 46 8,22
14. Japan Fund for Poverty Reduction 48 10,27 Implementation Completion Memorandum
15. Letter of Agreement 55 10,28
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Appendix 1 COST ESTIMATES SUMMARY COST TABLE ($)
Component A Component B Component C Grant Components Restoring Fostering Supporting Inputs/Expenditure Sustainable Community-Based Project Management, Category Access for Maintenance Practices Monitoring, and Audit Total Percent Isolated Communities (Input) (%) A. JFPR Grant-Financed 1. Civil Works 1,286,800 0 0 1,286,800 64.34% 2. Equipment and Suppliesa 0 10,000 12,060 22,060 1.10% Training, Workshops, Seminars, 3. and 0 600 0 600 0.03% Public Campaigns 4. Consulting Services 50,000 219,000 198,750 467,750 23.39% 5. Grant Management 0 0 36,000 36,000 1.80% 6. Contingencies (10% of total 125,790 32,000 29,000 186,790 9.34% estimated grant fund)b Subtotal (A) 1,462,590 261,600 275,810 2,000,000 100.00%
B. Government Contribution 221,600 0 24,000 245,600 10.00%
C. Other Donor Contributions 0 0 0 0
D. Community Contributions 0 100,300 24,000 124,300 5.00% (cash or in-kind)
Total (A+B+C+D) 1,684,190 361,900 323,810 2,369,900 100.00% ADB = Asian Development Bank, JFPR = Japan Fund for Poverty Reduction. a The safety tools and equipment purchased under component B will be transferred to community-based organizations, who will be responsible for organization of ongoing and future maintenance works. b Use of contingencies requires prior approval from ADB. Source: Asian Development Bank estimates.
DETAILED COST ESTIMATES ($) Costs Contributions Quantity Cost Per Code Supplies and Services Rendered Unit Total JFPR Government Community Units Unit ($) Procurement Amount Method Component A: Restoring Sustainable Access Subtotal 1,558,400 1,336,800 221,600 for Isolated Communities Physical Contingencies 125,790 125,790 1 Civil Works for 241.8M Bridge Foundation, head stock, bearing plate, 1.1 buffer stop, back walls from cast-in-situ m3 350 120 42,000 42,000 reinforced concrete B25 1.2 Reinforcement t 12.2 1,100 13,420 13,420 Manufacture, transportation, and 1.3 installation of girders 32.2m long from t 220 2,200 484,000 484,000 steel D16; seven girders 31.4t Manufacture, transportation, and installation of reinforced concrete slabs, 1.4 m3 202 800 161,600 161,600 class B30-105nos, reinforcement 56t or 0.227t/m3 Joint grouting, kerbs, and concrete B30 1.5 m3 171 140 23,940 23,940 pavement 1.6 Reinforcement t 9 1,100 9,900 9,900 1.7 Elastomeric bearings number 28 200 5,600 5,600 1.8 Painting t 220 70 15,400 15,400 Bridge abutment backfill and batter 1.9 slopes, excavation and 3km haulage and m3 12000 2 24,000 4,000 20,000 level compaction 1.1 Stone rip rap m3 6400 15 96,000 96,000 0 1.11 Reinforcement t 10.5 1,100 11,550 11,550 Subtotal 887,410 867,410 NCB 20,000 Civil Works for 1.05 km Bridge Access 2 Roads, Bridge Approaches of 0.3 and km 1.05 122,577 128,706 128,706 0.75 km, Category V Subtotal 128,706 128,706 NCB 3 Civil Works for 14 km Rural Road Appendix 1 3.1 Earthworks m3 14,000 1.80 25,200 25,200 3.2 Installation of drainage and side ditches m3 115 120 13,800 13,800 3.2.1 reinforcement (A1) t 5 1,072 5,360 5,360 3.2.2 reinforcement (AII) t 7 1,072 7,504 7,504
13 14
Appendix 1 Costs Contributions Quantity Cost Per Code Supplies and Services Rendered Unit Total JFPR Government Community Units Unit ($) Procurement Amount Method 3.3 Installation of ditches m3 756 20 15,120 15,120 3.4 Road pavement from gravel material m3 16,800 12 201,600 0 201,600 Traffic barriers from concrete 3.5 m3 750 88 66,000 66,000 2x0.6x1.1m 3.6 Embankment works m 600 250 150,000 150,000 3.7 Road signs number 70 110 7,700 7,700 Subtotal 492,284 290,684 NCB 201,600 4 Detailed Design 4.1 Local consultants LS 1 50,000 50,000 50,000 Subtotal 50,000 50,000 S Component B: Fostering Community-Based Subtotal 329,900 229,600 100,300 Maintenance Practices Physical Contingencies 32,000 32,000 1 Maintenance Equipment and Supplies Safety tools, equipment, and protective 1.1 LS 1 10,000 10,000 10,000 clothing Subtotal 10,000 10,000 S Training, Workshops, and Seminars for 2 900 600 300 Supervisors and Small Contractorsa trainee 2.1 Attendance of small contractors at on-site 60 10 600 600 day trainee 2.2 CBO administration and overhead costs 60 5 300 300 day Consulting Services (international 2.3 185,000 185,000 IC 0 individual consultant) Curriculum preparation, workshop 2.3.1 delivery to (train-the-trainer) supervisors p/m 2 12,500 25,000 25,000 and contractors 2.3.2 Supervision and on-the-job training p/m 2 20,000 40,000 40,000 2.3.3 Intermittent training and monitoring p/m 6 20,000 120,000 120,000 Subtotal 185,900 185,600 Rural Infrastructure Maintenance 3 Works Rural infrastructure maintenance works 3.1 (each contract package will be less than 100,000 DC 100,000 $10,000) 3.2 Consulting Services 34,000 34,000 IC
Costs Contributions Quantity Cost Per Code Supplies and Services Rendered Unit Total JFPR Government Community Units Unit ($) Procurement Amount Method 3.2.1 International Consultants (Individual) Mobilization, data collection p/m 0.5 9,000 4,500 4,500 Development of rural community p/m 0.5 9,000 4,500 4,500 interfaces and assessment of capacity Adjust budget, and prepare contract p/m 0.25 9,000 2,250 2,250 packages Replicate and coordinate design p/m 0.25 9,000 2,250 2,250 framework of JFPR 9078 3.2.2 Local Consultants Local maintenance specialist/engineer p/m 18 1,000 18,000 18,000 Local CBO consultant’s support p/m 5 500 2,500 2,500 Subtotal 134,000 34,000 100,000 Component C: Supporting Project Subtotal 294,810 246,810 24,000 24,000 Management, Monitoring, and Audit Physical Contingencies 29,000 29,000 1 Equipment and Supplies (PIU) 1.1 Telephone, telefax machine number 1 400 400 400 S 1.2 Modem, printer UPS number 1 1,200 1,200 1,200 S 1.3 Scanner number 1 120 120 120 S 1.4 Copying machine (manual feed) number 1 500 500 500 S Office running costs (such as paper, 1.5 toner, small equipment, computer month 24 200 4,800 4,800 servicing, cleaning) 1.6 Mobile phones number 2 120 240 240 S Communication costs (including 1.7 month 24 200 4,800 4,800 telephone, internet) Subtotal 12,060 12,060 2 Consulting Services IC 2.1 International consultant 2.1.1 Supervision and on-the-job training p/m 2 20,000 40,000 40,000 Oversight of tender award, contract 2.1.2 p/m 2 20,000 40,000 40,000 administration, and advance payments 2.1.3 Project management activities month 2 12,500 25,000 25,000 Appendix 1 round 2.1.4 International airfares 4 2,000 8,000 8,000 trip 2.1.5 Per diem for international consultant month 17.5 1,500 26,250 26,250
15 16
Appendix 1 Costs Contributions Quantity Cost Per Code Supplies and Services Rendered Unit Total JFPR Government Community Units Unit ($) Procurement Amount Method 2.1.6 Annual audit (2 years) year 2 10,000 20,000 20,000 2.2 Local consultant (all-inclusive cost) Baseline survey and impact 2.2.1 month 1 1,000 1,000 1,000 assessment Monitoring and evaluation including 2.2.2 month 1 1,000 1,000 1,000 ex-post 2.2.3 Poverty assessment 2.2.4 Outreach and publications LS 1 10,000 10,000 10,000 2.2.5 Per diem for local consultants day 550 50 27,500 27,500 Subtotal 198,750 198,750 3 Project Management DC 3.1 Office rent - project site month 24 1,000 24,000 24,000 3.2 Office rent - MOTC Dushanbe month 24 1,000 24,000 24,000 3.3 Engineer month 24 412.50 9,900 9,900 3.4 Bilingual secretary/translator month 24 312.50 12,000 7,500 3.5 Financier month 24 500 12,000 12,000 3.6 Fuel Expenses month 24 275 6,600 6,600 Subtotal 84,000 36,000 24,000 Total 2,183,110 1,813,210 245,600 124,300 Contingency 186,790 186,790 0 0
Total Project Cost 2,369,900 2,000,000 245,600 124,300 CBO = community-based organization, DC = direct contracting, IC = individual consultant, JFPR = Japan Fund for Poverty Reduction, km = kilometer, LS = lump sum, m = meter, m3 = cubic meter, MOTC = Ministry of Transport & Communication, NCB = national competitive bidding, PIU = project implementation unit, p/m = person- months, S = shopping, t = ton, UPS = uninterrupted power supply. a = Workshops for supervisors and small contractors training will be accommodated by the current JFPR; on-the-job training will not incur additional cost Sources: Asian Development Bank and Ministry of Transport and Communications estimates.
IMPLEMENTATION SCHEDULE
ID Task Name Duration Start Finish 007 Half 1, 2008 Half 2, 2008 Half 1, 2009 Half 2, 2009 Half 1, 02 N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A 1 Approv al of JFPR Project/LOA signing 0 day s Fri 11/30/07 Fri 11/30/07 11/30
2 Preparatory Works 727 daysMon 3/10/ Fri 0811/30/0
3 Mobilization and Preparation 20 day s Fri 11/30/07 Thu 12/27/07
4 Detailed Engineering Designs Fri 12/28/0 307 dayThu 2/7/08
5 Preparation of procurement packages & bid documentss Fri 2/8/0 158 dayThu 2/28/08
6 Rev iew by EA and ADBs Fri 2/29/0 78 dayMon 3/10/08
7 Submission of Final Design Reports Mon 3/10/08 0 dayMon 3/10/08 3/10
8 Procurement, Tendering and Evaluation 44 days Mon 3/10/08 Thu 5/8/08
9 Procurement notice and adv ertisements Mon 3/10/08 0 dayMon 3/10/08 3/10
10 Issuance of bidding documentss Tue 3/11/0 308 dayFri 4/18/08
11 Bid submission and evaluations Mon 4/21/0 148 dayThu 5/8/08
12 Contract awards Thu 5/8/08 0 dayThu 5/8/08 5/8
13 Construction and Commissioning 4988 daysTue 4/6/10 Fri 5/9/0
14 Mobilization of Contractors 20 day s Fri 5/9/08 Thu 6/5/08
15 Civil works 4788 daysTue 4/6/10 Fri 6/6/0
16 Bridge construction (15 working months) 412 day s Mon 9/8/08 Tue 4/6/10
17 Bridge access roadss Fri 6/6/0 1508 dayThu 1/1/09
18 rural roads Mon 8/4/0 2008 day Fri 5/8/09
Appendix 2 17
18 Appendix 3
PROCUREMENT PLAN
A. Program Information
Country Tajikistan Name of Borrower Republic of Tajikistan Project Name Sustainable Access for Isolated Rural Communities Loan or TA Reference Date of Effectiveness of Procurement Plan Amount Total estimated cost of the Project is $2.37 million. The JFPR grant amount is $2.0 million Of Which Committed $0 Executing Agency Ministry of Transport and Communications Approval Date of original Procurement Plan This is the first Procurement Plan Approval of Most Recent Procurement Plan Publication for Local Advertisementsa State and national newspapers Period Covered by This Plan Period covering 30 months, including procurement of works and consulting services financed from the grant. a General procurement notice, invitations to bid, and calls for expression of interest.
1. Procurement Thresholds: Goods, Works, and Related Services
Procurement Method To Be Used Above or Below ($) National Competitive Bidding Worksa Less than $1 million Shopping Less than $100,000 Direct Contracting Less than $10,000 a General procurement notice, invitations to bid, and calls for expression of interest.
2. Procurement Thresholds: Consulting Services
Procurement Method To Be Used Above or Below ($) Individual Consultant Not specified Alternative Methods National consulting companies and individuals may be engaged in accordance with ADB guidelines to provide short-term specialist consulting support to the project implementation unit.
Appendix 3 19
B. Project Information
1. List of Contract Packages: Goods, Works, and Consulting Services
Ref. Contract Description Estimated Procuremen Prior Review Comments Cost t Method (Y/N) 1. One civil works contract $887,410 NCB Y package for bridge rehabilitation (241.8 m) 2. Two civil works contract $64,353 each NCB Y packages for bridge approach-roads (1.05 km) 3. Two civil works contract $246,142 NCB Y packages for each rehabilitating rural road (14 km) 3. One package for $50,000 S Y detailed design 4. Minimum of 10 civil $100,000 DC Y works contract (each contract packages for rural package is infrastructure less than maintenance works $10,000) 5. Consulting services for $418,650 IC Y maintenance works, construction supervision, monitoring, and evaluation 6. Equipment $10,000 S Y Safety tools, (Maintenance) equipment, and protective clothing 7. Equipment (Office) $12,060 S Y DC = direct contracting, IC = individual consultant, km = kilometer, m = meter, NCB = national competitive bidding, S = shopping, Y = yes.
20 Appendix 4
NCB ANNEX TO LOAN AGREEMENT HARMONIZED TAJIKISTAN
1. General
The procedures to be followed for national competitive bidding shall be those set forth in Law of the Republic of Tajikistan on Public Procurement of Goods, Works and Services effective on 3 March 2006 with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of ADB’s Procurement Guidelines.
2. Eligibility
The eligibility of bidders shall be as defined under section I of ADB's Procurement Guidelines, published ADB in April 2006; accordingly, no bidder or potential bidder should be declared ineligible to ADB-financed contracts for other reasons than the ones provided by section I of ADB’s guidelines. Bidders must be nationals of member countries of ADB, and offered goods, works and services must be produced in and supplied from member countries of ADB.
3. Prequalification
Normally, post-qualification shall be used unless explicitly provided for in the loan agreement/procurement plan. Irrespective of whether post qualification or prequalification is used, eligible bidders (both national and foreign) shall be allowed to participate.
4. Bidding Period
The minimum bidding period is twenty-eight (28) days prior to the deadline for the submission of bids.
5. Bidding Documents
Procuring entities should use standard bidding documents for the procurement of goods, works and services acceptable to ADB.
6. Preferences No domestic preference shall be given for domestic bidders and for domestically manufactured goods.
7. Advertising
Invitations to bid shall be advertised in at least one widely circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of twenty- eight (28) days for the preparation and submission of bids. Bidding of NCB contracts estimated at $500,000 equivalent or more for goods and related services or $1,000,000 equivalent or more for civil works shall be advertised concurrently with the general procurement notices on ADB’s website.
8. Bid Security
Where required, bid security shall be in the form of a bank guarantee from a reputable bank.
Appendix 4 21
9. Bid Opening and Bid Evaluation
(a) Bids shall be opened in public. (b) Evaluation of bids shall be made in strict adherence to the criteria declared in the bidding documents and contracts shall be awarded to the lowest evaluated bidder. (c) Bidders shall not be eliminated from detailed evaluation on the basis of minor, non-substantial deviations. (d) No bidder shall be rejected on the basis of a comparison with the employer's estimate and budget ceiling without ADB’s prior concurrence. (e) A contract shall be awarded to the technically responsive bidder that offers the lowest evaluated price and who meets the qualifying requirements set out in the bidding documents. (f) No negotiations shall be permitted.
10. Rejection of All Bids and Rebidding
Bids shall not be rejected and new bids solicited without ADB’s prior concurrence.
11. Participation by Government-owned enterprises
Government-owned enterprises in the Republic of Tajikistan shall be eligible to participate as bidders only if they can establish that they are legally and financially autonomous, operate under commercial law and are not a dependent agency of the contracting authority. Furthermore, they will be subject to the same bid and performance security requirements as other bidders.
12. Right to Inspect/Audit
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.
13. Fraud and corruption
(a) 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, or coercive practices in competing for the contract in question.
(b) 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 in competing for, or in executing, an ADB-financed contract.
22 Appendix 5
Procurement under National Competitive Bidding1
Executing Agency ADB Suppliers/ Contractors
Prepare list of goods/ Loan/advance contracting works to bid approved
(For contracts over $0.5M in goods and related services or $1.0M in civil works) Prepare draft PQ documents 2 Advertise LCB contract packages and bid documents Concurrently with GPN in adb.org
ADB review, first contract only
Advertise locally and issue PQ documents2; Inform ADB of advertisement (4 weeks notice to suppliers is Purchase PQ documents acceptable) from EA; submit PQ application Evaluate PQ applications and select and/or recommend prequalified firms 2 EA notifies ADB of PQ results. 3
EA notification to prequalified Issue bidding documents to and disqualified firms prequalified suppliers (4-week bidding period is acceptable) Purchase bidding documents and submit bids Public bid opening; prepare record of public bid opening
Evaluate bids; prepare bid evaluation report; proceed to and or recommend contract award.3
Prepare Contract Agreement and Return signed contract to EA; send to supplier. Provide performance security
Send at least one English version of ADB post review, salient features of signed contract if approved, prepare PCSS. 3 Execute contract to ADB
Supervise and monitor contract
1 While NCB procedures are not required to be identical with ADB’s ICB procedures, they must reflect the underlying principles and not contravene ADB’s Procurement Guidelines. 2 Prequalification is discouraged for NCB. DMCs may have a register of suppliers. The processing mission should ensure that the registration system is acceptable to ADB (e.g., it reflects the underlying principles of ADB’s Procurement Guidelines); and where acceptable, a PQ may not be required. 3 If the prequalifcation or procurement requires prior consideration of the procurement committee, in accordance with PAI 3.11, the EA must be advised not to notify prequalified firms or award contract prior to the committee’s deliberations and subsequent ADB approval.
Appendix 6 23
OUTLINE TERMS OF REFERENCE FOR CONSULTANTS
1. The consultants for the Japan Fund for Poverty Reduction (JFPR)-financed Sustainable Access for Isolated Rural Communities Project (the Project) will be responsible for carrying out the Project components. The Project will construct Yangalik-Yahakpast bridge, bridge access roads and a rural road linking Yahakpast, Langary shoh and Tajikabad center. Capacity development component will actively employ and mainstream community driven participatory approach13 to ensure project sustainability. The consultants will be responsible for primary data collection, analysis, capacity development, construction supervision, and project management and monitoring in accordance with ADB standards and requirements. International consultants are required to engage with domestic consultants on all phases of the Project. It is anticipated that the expertise to be provided by the consultants will comprise bridge/road engineer cum project manager (21-24 person-months of international and 20-24 months of domestic consulting services); bridge/road maintenance specialist (10-12 person-months of international and 20-23 person months of domestic consulting services); economic, social and poverty monitoring and evaluation specialist (1-2 person-months of domestic consulting services); and environment specialist (1-2 person-months of domestic consulting services).
29. The Project manager will be an international consultant, who should also serve as a technical expert. He/she will be responsible for the overall project management and coordination among all of the Government agencies concerned (the Ministry of Transport and Communications (MOTC) and local governments), ADB, affected rural communities, NGOs, community-based organizations (CBO), Jamoat Resource and Advocacy Councils (JRC) and other development partners to ensure smooth implementation and non-duplication of work, and will ultimately be responsible for all deliverables of the Project.
A. Terms of Reference
2. The main responsibilities of the consultants will be to (i) employ low-cost labor-intensive techniques for construction of the bridge and access roads and guide engineering and detailed design accordingly, (ii) based on the lessons learned under JFPR-9078, establish system for community based road and bridge maintenance, (iii) train CBOs, local communities and contractors in labor-intensive techniques for bridge and road construction and maintenance, (iv) supervise day-to-day implementation of the project in close coordination with the PIU, and (v) carry out project benefit monitoring and evaluation. The Project Manager should have an engineering background specializing in road and bridge construction, and shall have a hands-on experience in low-cost engineering solutions and capable to accumulate community participation. The project manager will be assisted by the team of local consultants that will be selected upon the appointment of the project manager in consultation with the PIU.
3. Consultants’ responsibilities include, but not limited to, following areas:
(i) investigate the project site, collect necessary data and prepare recommendations on the low-cost techniques for the construction of the bridge and access roads, (ii) prepare the engineering designs, cost estimates, and implementation plans in compliance with road/bridge safety requirements and recommendations on environmental safeguards,
13 JFPR 9078-TAJ: Community Based Road Maintenance, ADB provides fundamental institutional support and framework for participatory development to promote community participation
24 Appendix 6
(iii) assist PIU in preparation of bid documents for procurement under local competitive bidding methods in accordance with ADB’s Procurement Guidelines; (iv) provide assistance to PIU in the process of evaluating bid(s) and selecting the successful bidder(s) as required, (v) establish a participatory framework in consultation with local road users in accordance with the JFPR grant implementation manual, (vi) assist PIU and local governments in the coordination and monitoring of the community awareness and participation programs; (vii) assist PIU and local governments with the invitation and selection of NGOs to be involved in the community participation, i.e. preparation of TORs and job descriptions, interviews and the proposed role of NGOs; (viii) assist and advise PIU and local governments to manage and coordinate the implementation of the community driven infrastructure maintenance awareness program; (ix) propose feasible mechanisms for participatory interaction with and training of local governments, CBOs/JRC, NGOs, local contractors and affected rural communities; (x) monitor performance and impact of community participation in the affected rural communities and make adjustments, where necessary. (xi) undertake the assessment of local institutional capacity in the affected rural communities; identify training needs and implement the Project in accordance to the findings, (xii) select participants from the affected communities, and coordinate with the project manager working under the JFPR-9078 to accommodate additional participants in the training/workshops, (xiii) carry out workshop(s) on bridge maintenance and inspection; assist in developing a bridge maintenance and inspection manual, (xiv) provide daily on-the-job training to local consultants, rural road maintenance units, CBOs/JRCs and local government, (xv) supervise project implementation in close coordination with the PIU, (xvi) approve the contractor's work program, method statements, material sources, among others, and provide necessary instructions to the contractor; certify work quantities and interim certificates for progress payments, and completion of part or all of the works; (xvii) inspect all works to ensure compliance with specifications and quality assurance requirements, notify the contractor if it fails to comply and take measures towards contractor meetings the contract requirements, (xviii) maintain good record of project progress, all correspondence and site records, (xix) assist PIU in preparing withdrawal applications for payments under the project, (xx) review and recommend to PIU variation orders, extensions of time, claims, and other matters that may arise with each contractor, (xxi) assess communities’ participation, and recommend an appropriate construction technology by utilizing labor-intensive work methods, (xxii) ensure compliance with the environmental and social impact mitigation requirements and include risk mitigation measures, (xxiii) ensure good labor practices during construction, (xxiv) assist PIU in preparing project progress and completion reports.
4. The consultants will strengthen the PIU capacity to (a) oversee the Project activities; (b) evaluate the PIU's existing system of procedures and reporting; (c) assist the PIU in coordinating with other relevant projects in implementing community driven maintenance
Appendix 6 25
practices and capacity development activities; oversee the construction progress of contractors; assist the PIU in defining and preparing contracts; establish criteria for supervision, coordination and management. More specifically, he/she will assist PIU in the following:
(i) Project Preparation. Assist PIU in developing annual project work plans, job descriptions, staffing schedules and equipment budgets; (ii) Project Monitoring and Due diligence: Assist PIU in all administrative and fiduciary oversight and coordination activities; Provide guidance to PIU in resolving specific technical and implementation related issues at the local level; Investigate construction delays, cost overrun, and contractor non-performance, among others, and recommend feasible solution and actions. Regular field visits for spot checks of physical progress; Engage PIU, local government, and rural communities at all levels of decision making after sufficient consultation; Assist PIU in establishing, testing and reviewing financial accounting and control systems and ensuring accurate and timely report submissions and funds flow from ADB; Assist PIU with the maintenance of project accounts, and with preparation of financial statements and withdrawal applications for submission to ADB; Preparation of progress reports on physical completion and financial disbursement; (iii) Economic, Social and Poverty Monitoring. Review and utilize available baseline surveys in the project area. If not available, assist local consultants and rural communities on the baseline and follow-up surveys, poverty impact monitoring and evaluation. Develop a gender plan to include women as much as possible in the participatory process and in the road works; and (iv) Environmental Monitoring. Assist PIU in complying with the ADB environmental safeguard policies. Guide local consultants and rural communities in establishing an environmental monitoring system and provide training staff to monitor environmental indicators, review the data collected, evaluate the effectiveness with which the environmental mitigation and monitoring measures are implemented and recommend actions to be taken, in accordance with ADB's Environmental Assessment Guideline, 2003.
B. Reporting Requirements
5 The consultant will submit reports in seven copies to MOTC/PIU and three copies to ADB. The required reports are:
(i) An inception report, giving initial findings and the work program for the balance of the assignment, to be submitted one month after services commence; (ii) Monthly progress reports, giving brief details of the work carried out during the previous month, the problems encountered or anticipated, together with the steps taken or recommendations for their correction, and financial and physical progress to date, by the 10th day of each month following the inception report; (iii) A project completion report, combining all construction contract packages.
26 Appendix 6
C. Counterpart Facilities
6 MOTC/PIU, local governments, rural communities will provide the consultant with, (i) all available data, studies and reports relevant to the Project; (ii) suitable office spaces at two locations (PIU and field office); and (iii) basic laboratory and measurement facility at one location near the project site. The consultant is required to specify additional facilities to carry out the work on the Project, and estimate costs in the financial proposal. All equipment procured by the consultants for the performance of services will remain the property of the Government.
Appendix 7 27
28 Appendix 8
FUND FLOW ARRANGEMENT Appendix 8. Schematic flow of funds
Asian Development Bank
National
Executing Agency Project JFPR Imprest MOTC Implementation Unit Account
Consultant
Jamoat
Road Jamoat Jamoat Resource Contractors Maintenance Government and Advocacy Suppliers Unit (RMU) Councils (JRCs)a
Village Village Committee Local Committee
Members
Legend:
Cash Flow
Document Flow
JFPR = Japan Fund for Poverty Reduction. MOTC = Ministry of Transport and Communications. a United Nations Development Programme (UNDP) supported establishment of Jamoat Development Committee, which is reshaped to jamoat resource and advocacy councils (JRCs) with streamlined functions. They are registered nongovernment organization established to promote local economic development, poverty reduction, transparency and accountability in local governance and civic education. UNDP oversees JRCs’ performances.
Source: Asian Development Bank.
Appendix 9 29
DISBURSEMENT PROCEDURES
1. Establishment of Imprest Account. The EA shall, for the purpose of this project, open and maintain an Imprest Account at a designated commercial bank for the deposit of JFPR funds and for making payments for Project expenditures, following detailed arrangements and actions agreed upon by the Government and ADB in accordance with ADB’s Loan Disbursement Handbook (January 2001 revised edition). For matters not covered in this Appendix, ADB’s Guidelines on Imprest Fund and Statement of Expenditures Procedures will apply.
2. Payments out of the Imprest Account shall be made exclusively for eligible expenditures in respect of the reasonable cost of goods and services required for the project. These payments will be financed from the proceeds of the JFPR Grant. The Imprest Account shall be denominated in US dollars.
3. Delegation of Authority for Withdrawal Applications. The Government delegates full authority to the EA to sign all applications for withdrawal of the JFPR Funds and to receive payment for all JFPR Funds. Such funds shall be deposited directly into the Imprest Account established by the EA.
4. All applications for withdrawal submitted by the EA shall be signed by duly authorized persons. At the start of implementation, the EA shall furnish to ADB the names and titles of the authorized signatories together with their authenticated specimen signatures.
5. When PIU desires to withdraw any amount of the JFPR Funds, PIU shall deliver to the EA an application in such form and containing such statements and agreements, as ADB shall reasonably request. The EA will then forward such application for withdrawal to ADB for processing. Disbursed JFPR Funds shall be paid directly to the PIU Imprest Account.
6. PIU shall not be required to further seek clearance from the Government or EA for disbursement from the Imprest Account to JFPR Project beneficiaries once the application for withdrawal has been submitted to ADB by the EA. However, each payment out of the Imprest Account shall be duly authorized by the joint signatures of any two members whose names and authenticated specimen signatures have been provided to the ADB.
7. Initial Advance and Ceiling. Before applying for the initial deposit into the Imprest Account, the EA should submit, for ADB approval, the work plan and financial budget plan for the first six months of project implementation. When applying for the Initial Deposit, the EA needs to prepare a withdrawal application form (Appendix 11). Upon evidence satisfactory to ADB that the Imprest Account has been duly opened, JFPR Funds will be deposited to the Imprest Account in the amount of six months estimated expenditures, which will be regarded as a ceiling for replenishment purposes. This ceiling may be changed by the mutual agreement between ADB and the EA.
8. Replenishment and Liquidation. To avoid disruption in the project's implementation schedule, application for replenishment of the Imprest Account is to be lodged before the account balance reaches no less than one month equivalent of project expenditures (no more than two months equivalent). When applying for replenishment, the EA needs to submit a withdrawal application with statements of expenditure attached together with supporting documents deemed necessary and other evidence as ADB shall reasonably request, and
30 Appendix 9
showing that each payment was made for eligible expenditures. Any individual payment to be reimbursed or liquidated/replenished under the SOE procedure shall not exceed the equivalent of $10,000.
9. The EA shall also furnish to ADB statement of Imprest Account prepared by the commercial bank. Details of debit entries of such bank statements of Imprest Account should be shown on the statement of separate sheet.
10. Accounts and Records. The EA shall ensure that all amounts received for or in connection with the Imprest Account and amounts withdrawn are recorded in a separate account in accordance with consistently maintained sound accounting principles. Upon receipt of monthly bank statements, the EA should reconcile its records against the bank statements and follow-up on any unreconciled entries. The EA shall retain until one year after Closing Date for withdrawals from the JFPR Account or such other date as ADB may agree, all accounts and records including orders, invoices, bills, receipts and other original documents evidencing the expenditures paid out of the Imprest Account, and shall enable ADB’s representatives to examine such accounts and records during disbursements and review missions.
11. On a monthly basis, all implementing agencies should submit to the EA reports of the Physical Progress of the Project, highlighting achievements in accordance with the Project objectives. At the same time, the implementing agencies also report on the monthly project expenditures as shown in the SOE-1 form. These expenditures will form a consolidated statement of accumulated expenditures as indicated in SOE-2 form.
12. On a quarterly basis, the EA will prepare a Physical Progress Report and Project Expenditures from all the implementing agencies as well as the Quarterly Project Expenditures (SOE-3 form). ADB will reserve the right not to replenish the Imprest Account if ADB has not received the latest quarterly report of the project.
13. The EA shall cause an adequate independent auditor or government auditor acceptable to ADB to periodically audit the Imprest Account above and furnish the audit report thereon to ADB not later than 6 months after the end of each fiscal year.
14. Ineligible or Unjustified Payment. Where any withdrawal or payment from the Imprest Account is determined by ADB (i) to have been utilized for any purposes not eligible, or (ii) not justified by the evidence furnished, the EA shall promptly upon notice from ADB and unless otherwise agreed by ADB, prior to any further replenishments, deposit into the Imprest Account an amount equal to the amount of such payment to the portion thereof not so eligible or justified, in the same currency as that in which the amount was withdrawn from the JFPR Account. Alternatively, ADB may offset the unjustified payment against new withdrawal application for reimbursement.
15. Closing of the Imprest Account. Upon determination that the project components to be financed with payments from the Imprest Account are near completion, ADB may reduce the amount of any replenishment as ADB may deem appropriate with a view towards gradually closing the Imprest Account.
16. In the event that (a) ADB determines that the amount outstanding in the Imprest Account will not be required to cover eligible expenditures, or (b) any amount remains outstanding in the Imprest Account after the Closing Date specified in the JFPR Agreement, the EA shall, promptly
Appendix 9 31
upon notice from ADB, and unless otherwise agreed by ADB, refund to ADB such amount then outstanding in the Imprest Account.
17. ADB may at any stage by notice to the EA suspend further replenishments to the Imprest Account if the EA has failed to comply with any of the provisions of this Appendix.
MONTHLY PROGRESS REPORT OF RECEIPTS & EXPENDITURES SOE-1 FORM Name of IA/NO: ______From the Month of ______to ______
Category Previous This Period Cumulative total Cumulative month for the year Project total Description (1) (2) (3) (4) (5) RECEIPTS JFPR Funds received Government contributions Contributions from the poor Contributions from civil society Others Donation in kind* TOTAL RECEIPTS EXPENDITURES Civil works Equipment, machinery, and other capital costs Supplies Training, workshops, seminars Consulting services Project management NGO services Others Donations in kind* TOTAL EXPENDITURES BALANCE BALANCE CASH ON HAND AND AT THE BANK Prepared by: Approved by:
______Project Accountant Project Manager This copy is retained by the PIU or EA for reference. If there is more than 1 payment or cheque, please list all check numbers in a separate sheet. * Only matching entry (This form is submitted by the IA/NGO to PIU)
33
CONSOLIDATED STATEMENT OF ACCUMULATED RECEIPTS & EXPENDITURES SOE-2 FORM From the beginning of the Project to ______(date)
Category Previous Current Cumulative total Cumulative Quarter Quarter for the year Project Total Description (1) (2) (3) (4) (5) RECEIPTS JFPR Funds received Government contributions Contributions from the poor Contributions from civil society Others Donation in kind* TOTAL RECEIPTS EXPENDITURES Civil works Equipment, machinery, and other capital costs Supplies Training, workshops, seminars Consulting services Project management NGO services Amount lent to revolving fund Others Donations in kind*
TOTAL EXPENDITURES BALANCE BALANCE CASH ON HAND AND AT THE BANK Appendix 9 33
34 Prepared by: Approved by:
App ______
Project Accountant Project Manager endix 9 This report is based on Monthly Progress Report of Receipts and Expenditures If there is more than 1 payment or cheque, please list all check numbers in a separate sheet. * Only matching entry
Appendix 9 35
SOE-3 FORM ASIAN DEVELOPMENT BANK ESTIMATE OF EXPENDITURE SHEET (Form ADB-IFP-EES)
JFPR No: Date: Category: Estimate Sheet No.: Application No.:
Contract Contract Description of Goods Contract Estimated Amount Exchange Estimated Amount No. Date and Services Amount of Expenditures2 Rate in US Dollar Equivalent
Total this page From previous page Total estimated expenditure Percentage of expenditures to be financed by ADB Amount eligible for ADB financing Account balance Amount request
1 A separate Estimate of Expenditure Sheet should be used for each category. 2 Refer to terms of payment for each contract and indicate the amount needed in the currency of expenditure. The amount in this column should not exceed the corresponding amount in the column "Contract Amount".
Name of Borrower Authorized Representative
36 Appendix 9
SOE-4 PAYMENT VOUCHER No.
NGO Name
Paid: (currency and amount) (amount in words)
To: (name of recipient)
Purpose:
By: cheque number
Cash
Prepared by: name and signature date
Authorized by: name and signature date
Received by: name and signature date
Appendix 10 37
INSTRUCTIONS FOR PREPARING WITHDRAWAL APPLICATION FOR IMPREST FUND
A. General Instructions
1. Submit withdrawal application (W/A) to the Bank /Resident Mission in duplicate. Number W/As consecutively, not exceeding 5 characters followed by the last two digits of the year (e.g., 0001/03 to indicate the first W/A for 2003). When application is completed, verify completeness of supporting documentation and accuracy of details before passing to the authorized representative(s) for signature. Mistakes and omissions result in delayed payment.
B. Withdrawal References
2. On the upper right hand side, enter date as signed by the authorized representative(s) and fill out JFPR Grant Number, application number (one number should be assigned for each IA consecutively beginning from A0001), and type of disbursement (initial advance, increase in ceiling or replenishment).
A. Estimate of Expenditures Sheet
3. Estimated expenditures should normally be based on the financial budget approved by ADB. No supporting documents are required. However, a bank statement from the bank maintaining the Imprest Fund and the bank reconciliation statement(s) of the Imprest Fund Account must be attached.
D. Payment Instructions
4. The full name and address of the payee’s bank (including the designated bank, if any), must be clearly indicated, along with the account number and SWIFT code, if the payee’s bank is a member. The payee’s full name and address must also be indicated.
5. Where payment is to be made to a bank not located in the country of currency to be paid, indicate its full name and address, along with the account number and SWIFT code, if the payee’s bank is a member.
6. For Special Payment Instructions, indicate any particulars special instructions, or references to facilitate payment or identification of payment.
7. The Name of the Executing Agency, as appears in the Letter of Agreement, is the Vientiane Capital City.
8. Only the authorized representative(s)’ signature will be honored. If the authorized representative (s) has been changed, the EA should convey the change to ADB prior to lodging the W/A.
38 Appendix 10
WITHDRAWAL APPLICATION FOR IMPREST FUND (Form ADB-IFP)
Date : ------JFPR Grant No: XXXX-TAJ Application No.: ------
To : Asian Development Bank PO Box 789 0980 Manila, Philippines
Type of Disbursement: ____ Initial Advance ____ Increase in Ceiling ____ Replenishment
Attention : Controller’s Department – Loan Administration Division 3 (CTLA 3)
Sir/Madam:
1. In connection with the JFPR Grant Assistance Project Agreement with Reference Number JFPR XXXX-TAJ dated _____ between the Asian Development Bank (Bank) and the Government of the Republic of Tajikistan, please pay from the Grant Account for the purpose of establishing/replenishing the Imprest Fund.
US Dollars ______(Amount to be paid in figures)
2. The undersigned certifies and agrees as follows:
a. The said amount is required of eligible expenditures as described in the attached Estimate of Expenditures Sheet(s) from ______to ______. (date/month/year) (date/month/year)
b. Any advances by the Asian Development Bank to the Imprest Fund may be limited to a sum smaller than the amount requested for advances or replenishment, allowing the Fund to be gradually reduced and fully documented prior to Project closing date.
c. The undersigned has not previously withdrawn or applied for withdrawal of any amounts from said JFPR Grant Account nor obtained or will obtain any loan, credit, or grant for the purpose of fully or partially meeting the expenditures described in the Estimate of Expenditures Sheet(s) or Summary Sheet(s).
d. The expenditures described in the attached Estimate of Expenditures Sheet(s) or Summary Sheet(s) are to be made for the purposes specified in the JFPR Grant Assistance Agreement and in accordance with its terms and conditions.
Appendix 10 39
e. Promptly within 6 months after the payment(s), the undersigned will furnish proof satisfactory to the Bank to liquidate and document the advance.
f. For expenditures to be liquidated on the basis of a Statement of Expenditures (SOE), all authenticating documents will be retained in the location shown on the individual SOE Summary Sheet(s) and will be made available for review by auditors and Bank representatives upon request.
g. If any funds withdrawn pursuant to this application are returned, the current value of such funds will be applied as credit to the JFPR Grant Account.
3. Payment Instructions
a. Payee’s Name and Address • Payee’s Name: ______• Payee’s Address ______
b. Name and Address of Payee’s Bank and Account Number • Bank Name: ______• Bank Address ______• Payee’s Account No. ______• SWIFT Code ______
c. Correspondent Bank (If Payee’s Bank is not located in the country whose currency is claimed, enter the name and address of their bank’s correspondent in the country whose currency is to be paid.) • Bank Name: ______• Bank Address ______• Account No. of Payee’s Bank ______• SWIFT Code ______
d. Special Payment Instructions or References
4. This application consists of (number) page(s) including (number) page(s) of Summary Sheet(s):
______,
By: ______Signature(s) of Authorized Representative(s)
______Print Name & Title of Authorized Representative(s)
40 Appendix 11
REPORTING REQUIREMENTS
.1. Description of Contents Quarterly Progress Reports on the implementation of the Project should be prepared and submitted to ADB for the periods ending March, June, September and December, not later than thirty working days after the end of each reporting period, in a format comprising the following parts: (i) Summary, (ii) Technical/Project Components, (iii) Financial Reporting, (iv) Management and Operation, (v) Other Miscellaneous Matters, and (vi) Conclusion. The following paragraphs illustrate and highlight the type of information that ADB would like to receive on a semi-annual basis on the implementation of the project and the operation of the project facilities.
2. Summary. This part should contain a summarized version of the Project implementation status as detailed in subsequent part for immediate and ready reference. It should analyze original and revised schedules and actual achievements, shortfalls in terms of physical and financial targets and accomplishments, both during the reporting period and up to the next reporting period (preferably in terms of broad components of identifiable physical elements). It would also contain conclusions about the viability of the original (as indicated in the JFPR Paper) cost estimate and expected date of completion of the Project.
3. Technical/Project Components. The purpose of this part is to provide information on significant physical activities which took place during the reporting period with an assessment of progress achieved and a projection of progress expected to be achieved in the next reporting period. This should contain information at least in the following aspects:
(i) Physical works accomplished during the reporting period
(ii) Comparison of the actual progress of activities as at the end of each reporting period with that of the original forecast
(iii) Changes in the original/ revised plan and schedules or deviations there from (actual or expected), except that changes requiring ADB’s approval should be reported to ADB immediately and subsequently mentioned in the semi-annual report
(iv) Other changes, modifications, deviations or events which affected physical progress during the reporting period which are likely to affect project implementation in the next reporting period.
4. Progress on each Project components should cover: (i) measures taken or planned to correct factors responsible for delay during the reporting period or which are likely to affect physical progress in the future; (ii) any delay or expected in the delivery of services and activities; and (iii) any unusual occurrences affecting the progress of the Project components.
5. Financial reporting. The annual financing plan for the Project and achievements in financial terms during the reporting should be supported by appendix/table. The details should at least cover the following: Amount allocated from the JFPR Project $______Amount contributed by Government through the EA in the annual budget $______Amount contributed by Civil Society $______
Appendix 11 41
Amount contributed by the community $______Total amount of funds received $______Amount of funds utilized to date (provide supporting schedules covering each component/sub component of the project) $______Balance of funds as at (date) $______
7. Management and Operation. This part meant to be descriptive and should highlight, among others: (i) actual or prospective changes in the organization of the EA and PCU, (ii) status of the project office, (iii) problems encountered, and (iv) measures taken and? Statement of the progress of such other activities, i.e., coordination with other implementing agencies.
8. Conclusion. The format of the Project and guidelines enunciated above are for guidance only and should be adjusted keeping view of the implementation status. The report will also summarize the main issues and findings.
42 Appendix 12
AUDIT REQUIREMENTS AND GUIDELINES
A. Audit Program
1. The audit process should closely examine the following aspects: (i) verification of any cash amount on hand (cash count included), (ii) review of the internal control system and records maintained to ascertain compliance with the agreed Imprest system, (iii) review of records and controls over daily collections, (iv) review of records and management system covering donations in kind, (v) cash receipts and payments books, (vi) review of the records and management system covering the micro-credit lending activities, (vii) review on test basis the accuracy of the Bank reconciliation statements, (viii) review and provide comments on the progress financial reports, (ix). Review records of fixed assets (including work-in-progress) and on test basis verify their existence.
2. Cash Count. A review of the cash receipts and bank records together with a cash count shall be done to determine if various funds in the possession of the Fund Custodian are accounted for. Cash on hand shall be counted in the presence of the Fund Custodian on a per fund basis, noting the various denominations and accompanying receipts for expenses taken from the fund. Review the associated cash records to determine if the fund has been used according to the stated purposes.
3. A Cash Count Form shall be accompanied by the Auditor for signing by the Fund Custodian when the counted cash on hand has been returned intact. Entries shall be adjusted for any shortage of or excess cash. Any shortage in cash on hand shall be charged to the concerned staff. Excess cash shall be considered as other income requiring the issuance of an Official Receipt (OR).
4. Compliance with the Imprest System. Through walk-through-tests, check whether the Imprest System is being followed. The system requires all cash received to be receipted [using the project receipt book(s)], deposited intact or latest the following banking day. Should this practice prove to be impractical, determine whether cash collections are deposited within a reasonable period, which should not be later than three days. Ensure that all withdrawals (by cheque/cash) from the Imprest Account have been duly authorized by the authorized signatories and properly supported by documented proposals from the requesting agency/IA. Arrange for direct confirmation and/verification of bank records and balances.
5. Daily Collection Report. Compare and verify the information in the Daily Collection Report with the entries of the Cash Receipts Book and confirm the validity of the entries from issued Official Receipts (OR). Carefully note cancelled ORs and ensure that original and duplicate copies are intact. Ensure that daily receipts have been deposited daily (or at the latest three working days from when they were dated) to the appropriate bank account and bank deposit slips retained in chronological order. Review the supporting documents accompanying all withdrawals from this account to ensure they have been used for the intended purpose(s).
6. Donations in Kind. Ensure that non-monetary contributions are properly accounted for in a register that will identify the name of donor, date and details. This may be further verified from Receiving Reports and Confirmation Receipts signed by donors. .
7. Cash Receipts Book. Determine whether proper columns (credits) are maintained, Official Receipts are chronologically recorded, and accounted for. One may also be able to observe the record of deposits from this book to the bank account (check bank deposit receipts). Be sure to establish the proper cut-off points.
Appendix 12 43
8. Bank Reconciliation Statements. Perform sample tests to check if bank statements are regularly prepared. Compare actual book balance with bank balance; ensure that cash collections are not exchanged for Third Party Checks; and ensure that collections are deposited to accounts maintained according to purpose, i.e., amount collected for payment of livelihood loans should be deposited in the livelihood fund savings account.
B. Cash Disbursements
9. Petty Cash or Check Voucher. The following documents should be checked to determine whether cash disbursements have been according to Project policies and guidelines. Do sample tests to ensure the following criteria are met:
(i) Vouchers have been properly accomplished; vouchers are pre-numbered (form SOE-4) and used consecutively; documents have complete explanations and references concerning the transaction paid. These explanations should be readily understandable to any individual reading the document. See Appendix 9.
(ii) All signatures required for the release of the amount are present; a “No approval, no payment” policy is applied.
(iii) Payee/Creditor acknowledges payment made. In cases where payment is claimed by person/s other than named Payee/Creditor, proper authorization should be attached to the Voucher; payment should be supported by the proper receipts and other necessary documents that establish the legitimacy.
(iv) Disbursements are according to the approved Proposal. All disbursements are within the approved budget. In cases where disbursements have exceeded approved budget expenditures, check whether proper approval was secured.
(v) Perform a test check on cancelled or used checks. Using the Check Vouchers, determine whether the person or the company named in the voucher did cash the check.
(vi) Check and verify journal entries made on vouchers for inappropriate or improper charging accounts. Recommend adjusting the journal entries if necessary; recommend a thorough investigation on unauthorized disbursement and bring the matter to the attention of Project Management.
9. Cash Disbursement Book. Perform a test check to ensure that all Check Disbursement Vouchers are properly recorded and that columns in the Disbursement Book for debits and credits for the proper charging of accounts are adequate. Entries for all Check Vouchers and checks issued including the name of the Payee and a brief explanation of the payment must be accurate. The chronological recording of Check Vouchers, taking note of cancelled vouchers. All footings at month-end are entered in the General Ledger; individual accounts paid are entered in the Subsidiary Ledger.
C. Other Financial Records
10. General and Subsidiary Ledgers. Cross-check entries to the general ledger from various books of original entry to ensure accuracy. Subsidiary Ledgers must be individually maintained for: (i) Major accounts such as individual work-in-progress civil works, individual categories of fixed assets (including depreciation) such as equipment, machinery, individual consultancy costs, food, medical care, educational materials and supplies, transportation, and
44 Appendix 12 local counterpart contributions in cash or kind, social security, (SSS) loans, and Cash Advances. This will allow the monitoring of actual balances at any given time. For non-moving Receivable accounts, Project Management shall remind the concerned staff through writing and exert efforts to collect the amount. Management may also suggest a payment scheme if necessary.
11. Report of the External Auditor. The audit report must authenticate the reliability of the accounting records and systems on which the project's regular and annual financial reports are based, verify the actual physical progress of the project as reported from time to time and ensure that the funds provided through the JFPR project have been utilized in accordance with the project agreement. The auditors are also expected to provide an audit management report that will highlight: (i) issues identified during the current audit that each IA or the EA should address in order to improve the systems of accounting, recording, reporting and project implementation; (ii) what courses of action have been implemented by Project Management to comply with previous recommendations of the External Auditor, (iii) note any improvement that resulted from the External Auditor’s recommendations, and (iii) study the External Auditor’s report and discuss with Project Management existing areas of concern, e.g., uncollected accounts; long-standing, non-liquidated cash advances; or discrepancies in the External Audit Report.
12. Lapsing Schedule or Inventory List. Perform a sample test to determine whether property or equipment listed in the Lapsing Schedule is accounted for. Check if property and equipment can still be utilized and retire the asset from the record if it has fully depreciated. Fully depreciated assets that continue to be usable have to be reported in the Notes to the Financial Statement.
13. Unaudited Financial Statements. For Project Management decision-making purposes, annual Unaudited Financial Statements can be an effective tool as it provides management with a provisional report on the financial status of the Project.
14. Bank Passbooks. Compare withdrawals against savings and determine if deposits made to the account tally with deposit slips filed. Note Interest Income earned and check if it is reflected in the books. Determine who is responsible for keeping these documents and arrange for direct confirmation of bank balances.
Appendix 12 45
GUIDELINES FOR AUDITOR’S OPINION
A. IMPREST ACCOUNT
30. The auditor’s statement regarding the imprest account should include the following information:
(i) That the auditor has examined the Statement of Imprest Account of ADB JFPR Grant No. 9111-TAJ: Sustainable Access for Isolated Communities;
(ii) The period (to include dates) that the statement covers, pursuant to the JFPR Agreement signed between the Government and the Asian Development Bank on ______;
(iii) A statement which indicates that the auditor’s examination was made in accordance with generally accepted auditing standards emphasizing the adequacy and completeness of the supporting documents of the Imprest Account and other auditing procedures as we considered necessary in the circumstances;
(iv) The auditor’s opinion, with regard to support the application for reimbursement/payment in accordance with the Bank’s requirements as set out in the JFPR Agreement;
(v) Auditor’s signature and date.
B. STATEMENT OF EXPENDITURE
31. The statement of expenditure should include the following information:
(i) That the auditor has examined the Statements of Expenditures submitted to the Bank during the period in support of applications for liquidation of the Imprest, pursuant to the above mentioned JFPR Agreement;
(ii) That the auditor’s examination was made in accordance with generally accepted auditing standards, and, accordingly included such tests of the accounting records, verification of assets and other such auditing procedures considered necessary;
(iii) The auditor’s opinion, that the Statement of Expenditures submitted, together with the internal control and procedures involved in their preparation, can/cannot be relied on to support the applications for liquidations in accordance with the requirements of the above mentioned Agreements;
(iv) Auditor’s signature and date.
46 Appendix 13
Monitoring and Evaluation
Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E Impact
Contribute to sustainable economic − National statistics − Annual national statistics growth through physical − Socioeconomic survey − Annual baseline survey infrastructure investment and rural − Baseline surveys − Household surveys at development. − Household surveys project launch and − Poverty and Social Impact completion − Decreased unemployment rate Assessment − Increased inter- and intra-rayon − External evaluation study trade
Outcome
Establishment of safe, efficient, and sustainable access for the rural poor.
By 2010: − Increased freight and − MOTC reports and − Annual baseline survey passenger traffic transport surveys − Household surveys at − Decreased transport costs − Provincial and local project launch and − Reduced vehicle operating government statistics completion costs reports − Final reports − Reduced travel time − Household surveys − Improved safety − Baseline surveys − Social Impact Assessment − Implementation completion memorandum Outputs Component 1
By 2010: − The 241.8-m Yangalik– Yahakpast Bridge rehabilitated − PIU project progress − Field visits and site − 1.05 km Yangalik–Yahakpast reports inspection Bridge approach-roads − Project administration − Progress reports constructed missions and reports − Quarterly reports − 14-km rural road linking − Progress and completion − Semiannual reports Yahakpast, Langary shoh, and reports − Final reports access road to Tajikabad center − Contractor’s progress improved reports Component 2
By 2010: − Rural road maintenance manual − Rural road maintenance − Assessment of training and adapted and implemented budget and expenditure workshops − Community-based maintenance records − Monitoring of commitment system fully operational, − Local government of local government and including establishment and maintenance records and rural communities maintenance of village reports − Monthly reports maintenance funds − Progress and completion − Quarterly reports
Appendix 13 47
Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E − Local government staff, CBOs, reports − Semiannual reports JRCs, and other relevant − Consultant reports − Final reports parties received training and − Training and workshop workshops materials − Local small-scale contractors and subcontractors trained − Safety maintenance equipment procured − Awareness campaign conducted − Periodic infrastructure maintenance activities carried out − Local laborers, including women and other vulnerable people, employed for maintenance works
Component 3
For the entire duration of the Project: − Consultant reports − Annual project audit reports − Consulting services for − Project audit reports − Project completion report construction supervision and − Project administration − Monthly reports monitoring and evaluation missions and reports − Quarterly reports engaged in a timely manner − Progress and completion − Semiannual reports − Project management supported reports − Final reports − Measures to improve rural infrastructure maintenance, financial management, governance, safeguards, fiduciary oversight, anticorruption, and overall project management implemented − External auditor engaged − Grant Implementation Manual followed
48 Appendix 13
PERFORMANCE MONITORING SYSTEM GUIDELINES
1. The Project performance management and evaluation system comprises Benefit Monitoring and Evaluation (BME), Performance Monitoring and Evaluation (PME) and Response Monitoring and Evaluation (RME).
2. Benefit Monitoring and Evaluation. BME aims to ascertain the impact of the Project on the beneficiaries. It will be carried out at the Project Implementation Unit (PIU) level. PIU will be responsible for the BME with assistance from all concerned IAs and will follow the ADB BME guidelines.
3. At the beginning of the Project, a baseline survey will be carried out to record benchmark information against which progress will be measured. The benchmark information will describe the average socioeconomic characteristics of target beneficiaries, and information about the existing sanitation situation and related infrastructures in the area.
4. The indicators sought and the information to be evaluated will include the progress in the Project implementation according to components and the work plan. Delivery constraints will be identified and solutions sought. The BME will include information from all project implementation units under the Project.
5. Performance Monitoring and Evaluation. PME is built upon current performance recording and evaluation systems within the delivery organization(s)/IAs which record delivery of inputs and responses. PME will provide the basis for the more detailed information concerning delivery of inputs, mobilization of families and communities and their responses.
6. The information gathered through PME will be aggregated, analyzed and used for planning support service activities. Delivery activities will be recorded in terms of materials applications received, materials granted and responses, surveys returned, numbers of various activities (training and community education awareness campaigns) and other support activities carried out as well as other promotional activities such as advertisement, campaigns, mass meetings, etc. Capability will be developed to record and monitor trends using key indicators, e.g. infrastructure maintenance, solid waste management practice, and composting activities. The activities and respondents’ data from those assisted under the Project will be collected, recorded, evaluated and used under the BME. Any issues and concerns requiring changes in the Project design and implementation plans will be identified and resolved through PME.
7. Response Monitoring and Evaluation. RME conducted at the community level and involving families in their communities to provide a framework to monitor community’s participation and response. RME, organized by the IAs, will be conducted at the community level. The process will involve both record keeping and learning from experience. A quarterly review exercise will deal with major issues identified.
8. Stakeholders will be actively engaged in the monitoring and evaluating process. PME will provide a means of integrating the particular perspective and needs of different stakeholders into the Project. Stakeholders will benefit from their participation and will develop new ways of addressing community problems and development issues. Through this process, ownership of the Project will be enhanced within the community.
9. Monitoring will be done throughout the program using project records, operational reports, complaints register, health and income statistics of target communities. Specific
Appendix 13 49 evaluation will be associated with key project events such as delivery of training courses. Evaluation of training would include assessment of training records, trainee feedback, and follow up on post-training activities. Household surveys, based on the baseline survey conducted early on, will be undertaken prior to the mid-term evaluation of the project and upon completion of the project. The indicators assess the direct benefits of implementing the various program components.
50 Appendix 14
JAPAN FUND FOR POVERTY REDUCTION IMPLEMENTATION COMPLETION MEMORANDUM (ICM)1
I. BASIC INFORMATION 1. JFPR Number and Name of Grant:
2. Country (DMC): 3. Approved JFPR Grant Amount: $
4. Grant Type: 5-A. Undisbursed 5-B. Utilized | Project / | Capacity Amount Amount Building $ $ 6. Contributions from other sources {convert in-kind contributions into US$} Source of Contribution: Committed Actual Remark - Notes: Amount Contributions: DMC Government $ $ Other Donors (please $ $ name) Private Sector $ $ Community/Beneficiarie $ $ s
7-A. GOJ Approval Date: 7-B. ADB Approval Date: 7-C. Date the LOA was signed (Grant Effectiveness Date):
8-A. Original Grant Closing 8-B. Actual Grant Closing 8-C. Account Closing Date: Date: Date:
9. Name and Number of Counterpart ADB (Loan) Project:
1 The ICM has to be prepared under responsibility of the ADB Project Officer with contributions from the Recipient, EA/IAs, and the grant project manager/coordinator at the PIU. A template of the ICM is available on network drive W:\TEMPLATE\OCO\JFPR
Appendix 14 51
10. The Grant Recipient(s): {Names, address, contact persons, e-mail, phone, fax numbers of the agency(ies) and/or institutions that signed the Letter of Agreement with ADB}
11. Executing and Implementing Agencies: {Names, Address, Contact Persons, E-mail, Phone, Fax}
II. GRANT PERFORMANCE ASSESSMENT 12. Description (Background rationale): {Extract information on background and rationale from the approved JFPR Grant Proposal and summarize}
13. Grant Development Objective and Scope: {Briefly describe the Grant Development Objectives (purpose) and scope (outputs and activities). Assess the relevance of the Grant design (including appropriateness of objectives, components, implementation arrangements and schedule) and formulation (including extent of stakeholders’ participation and ownership)}
14. Key Performance Indicators Accomplishments Evaluation of each Indicator: {list each original indicator as mentioned in Rating {rate the accomplishments, describe the approved JFPR Grant Proposal} (HS,S,PS,U14) any changes and evaluate each indicator for its relevance, achievements and sustainability} i)
ii)
14 HS=Highly Satisfactory; S=Satisfactory; PS=Partly Satisfactory; U=Unsuccessful
52 Appendix 14
iii)
iv)
v)
15. Evaluation of Inputs (Adequacy of formulation, terms of references, inputs and performance of the Recipient(s), EA, IA(s), NGOs and ADB, performance of consultants, other inputs, review missions): {Evaluate, among others: (i) The economy of input provision (the relative cost of input provision); (ii) the productivity of the inputs (conversion into outputs); (iii) the quality of the inputs; (iv) reasons for deviating from planned inputs and activities; (v) client satisfaction with the inputs provided; (vi) the performance of ADB, the Recipient, the EA, IA(s) and NGOs as highly satisfactory (HS), satisfactory (S), partly satisfactory (PS), or Unsatisfactory (U); (vii) any other inputs.}
16. Evaluation of Outputs and Results (Reports generated, institution building, training, analysis of quality, comparison with terms of references, sustainability and exit strategy): {Evaluate performance issues, such as (i) efficiency in the production of outputs (cost and process); (ii) effectiveness or efficacy (compare actual to planned results); (iii) quality of outputs (refer to qualitative benchmarks where possible); (iv) recipient and client (beneficiaries) satisfaction with the outputs/ results; (v) timeliness of delivery of outputs; and (vi) effectiveness of the exit strategy and related transfer of activities for sustainability.}
17. Overall Assessment and Rating (HS,S,PS,U): {Provide an overall assessment including the issues of sustainability, and categorize the Grant activities as highly successful (HS), successful (S), partly successful (PS), or unsuccessful (U) following OED’s guidelines.}
Appendix 14 53
18. Major Lessons Learned: {Discuss the significant lessons learned that can help improve the formulation and implementation of similar JFPR grant investments and as an input for recommendations and for scaling-up the pilot interventions under this Grant, particularly in relation to the overall objective of poverty reduction.}
19. Recommendations and Follow-up Actions: {Include project-specific and general recommendations (scaling up) of any interventions, activities and action required, and make suggestions for changes to policies and strategies that can improve the effectiveness of the counterpart loan, future JFPR grants, and/or that can generally be applicable to ADB practices.}
20. Additional Remarks, Comments and Suggestions: {Present here any additional remarks, comments and suggestions that have not been dealt with or mentioned in earlier paragraphs, but which may contribute to this memorandum.}
I. III. PREPARATION AND APPROVAL Name of Person and designation / Name of Prepared by: II. Date Institution/Signature 1. Representative from the Recipient:
2. Manager, JFPR-GIU15: 3. Project Officer, ADB: {the Project Officer consolidates the inputs from the Recipient and the PIU}
15 GIU=grant implementation unit (formerly called PIU=project implementation unit)
54 Appendix 14
Name of Person and designation / Name of Approved III. Date Institution / Signature 1. Director General, Department, ADB: 2. Division/Country Director, ADB: 3. Head of the Recipient: 4. Head of the Executing Agency: 5. Head of Implementing Agency:
Appendix 14 55
JFPR IMPLEMENTATION COMPLETION MEMORANDUM (ICM)16 BACKGROUND INFORMATION
A. Objective and Scope
1. The main objective of a JFPR Implementation Completion Memorandum (ICM) is to learn from the experiences of the Recipients, executing agencies (EAs), implementing agencies (IAs) and ADB in implementing grants, and to use the lessons learned to improve the performance of ongoing and future ADB-financed projects in poverty reduction. The ICM will also be used as a measure of ADB’s development effectiveness and as an input to country strategy formulation. An ICM • evaluates the rationale for the JFPR; adequacy of preparation; appraisal and design; implementation arrangements; and performance of the recipient, EA, IAs and ADB, including how problems were handled, whether they were foreseen as potential risks, and the adequacy of the solutions adopted during implementation; • provides a preliminary evaluation of achievements of the immediate objectives (purpose) and the impact and contribution to the overall objectives (goal); • provides a preliminary evaluation of the sustainability of the grant interventions and benefits; and • makes recommendations—based on the evaluation and lessons learned—for dissemination and scaling-up of the grant interventions for future ADB operations.
B. Timing and Preparation of ICM
2. An ICM is prepared within six months after Grant Closing Date17.
3. The Recipient (EA and/or IA) first prepares the ICM for self-evaluation and also helps with the preparation of ADB’s section of the ICM. If the Recipient’s contribution of the ICM is delayed and the grant implementation is considered complete, the division/country director concerned may, after consultation with the latest review mission and responsible project staff, decide to proceed with preparing ADB’s part of the ICM in the absence of the recipient’s section of the ICM.
4. When the grant implementation is approaching completion, an ADB review mission should agree with the Recipients on the outline and timing for the Recipient’s section of the ICM. Assistance in preparing the Recipient’s section of the ICM is usually a part of the terms of reference of the grant implementation unit (GIU).
C. Length and Content of ICMs
5. Staff of the unit administering the grant (sector division, regional department or resident mission) must ensure that any problems or issues that arose during grant implementation are recorded in the ICM. Grant status reports and back-to-office reports (BTORs) prepared during preparation and implementation will provide the input for this. Such issues or problems should
16 Policy and procedures are based on the JFPR guidelines, topic 29, in combination with the principles of PAI 6.07 - Grant Completion Report for ADB Loans. 17 Grant Closing Date is the date when all implementation, consolidation and other related physical activities end, as shown in the JFPR Grant Proposal and the Letter of Agreement, up to a maximum of four years after JFPR grant effectiveness, including extensions.
56 Appendix 14 not go unnoticed and thus lessons ignored. Therefore, all ICMs are to be detailed. Appendixes are limited to those that are essential for explaining the text.
6. An ICM is kept concise by • concentrating on analyzing grant inputs and activities, implementation arrangements, costs, outputs, and impacts; • focusing on the principal determinants of performance; • using condensed analytical tables and supporting appendixes; • using cross-referencing to source documents; and • avoiding repetition.
D. Intended Use of the Implementation Completion Memorandum (ICM)
7. ICMs are intended for use by and will be circulated to the
• The Government of Japan • Directors General and Directors of relevant departments, Divisions and offices; • Country director, RM concerned; and • Recipients, concerned DMC agency, executing and implementing agencies.
Appendix 15 57
Central and West Asia Department Infrastructure Division
2 November 2007
Mr. Matlubkhon Davlatov State Adviser to the President on Economic Policy President’s Office ADB Governor for Tajikistan
Dear Mr. Davlatov:
Japan Fund for Poverty Reduction (JFPR) Assistance for Sustainable access for isolated rural communities (JFPR Project No.– 9111)
1. We are pleased to inform you that on 23 October 2007, the Asian Development Bank (ADB) approved the provision of assistance on a grant basis from the JFPR (the JFPR Assistance) to the Government of Tajikistan (the Government) in an amount not exceeding the equivalent of US$2,000,000 for Sustainable Access for Isolated Rural Communities (the JFPR Project)
2. As indicated in the Grant Assistance Report, which is attached as an Annex to this Letter of Agreement, the Ministry of Transport and Communications (MOTC) is to serve as the Executing Agency for the JFPR Project.
3. The Government, acting through the Executing Agency, shall carry out the JFPR Project with due diligence and efficiency, in accordance with the arrangements described in the Grant Assistance Report, and as provided below.
4. ADB shall administer the JFPR pursuant to an agreement ADB has entered into with the Government of Japan, and as provided in the Grant Assistance Report and as otherwise described below.
5. The Government shall make available, promptly as needed, the funds, facilities, services, equipment, land and other resources which are required, in addition to the funds to be provided under the JFPR Assistance (the JFPR Funds), for the carrying out of the JFPR Project.
6. Except as ADB may otherwise agree, the Government shall apply the JFPR Funds to the financing of expenditures specified in the Grant Assistance Report.
7. Except as ADB may otherwise agree, the Government shall ensure all goods, services and other items of expenditure financed out of the JFPR Funds are used exclusively in the carrying out of the JFPR Project.
8. The procurement of any goods and services (excluding consulting services) financed under the JFPR Assistance shall be carried out in accordance with the ADB’s “Procurement Guidelines" (2007, as amended from time to time). The engagement of any consulting services financed under the JFPR Assistance shall be carried out in accordance with the “Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers” (2007, as amended 58 Appendix 15
from time to time), and such other arrangements satisfactory to ADB as may apply to the engagement of domestic consultants.
9. The Government shall maintain, or cause to be maintained, records and accounts adequate to identify the goods, services and other items of expenditure financed out of the JFPR Funds, to disclose the use thereof in the JFPR Project, and to record the progress of the JFPR Project (including the cost thereof).
10. The Government:
(a) shall (i) maintain or cause to be maintained, separate accounts for the JFPR Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the JFPR Funds, and the operation of any imprest account and the application of any statement of expenditures (SOE) procedure authorized under the JFPR Project), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.
(b) shall enable ADB, upon ADB’s request, to discuss the Government’s financial statements for the JFPR Project from time to time with the Government’s auditors, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB.
11. The Government shall enable ADB’s representatives to inspect the JFPR Project, and the goods, services and other items of expenditure financed out of the JFPR Funds, and any relevant records and documents.
12. (a) The JFPR Funds shall not be disbursed by ADB after the expected completion date of the JFPR Project or maximum four years from the date of this Letter of Agreement, whichever is earlier, or such other date to which ADB may agree.
(b) The Government shall follow, or cause to be followed, procedures acceptable to ADB to facilitate disbursement of the JFPR Funds under the JFPR Project. These provisions shall include detailed arrangements to be agreed upon between the Government and ADB on applications for withdrawal, evidence of authority to sign such applications, evidence to support such applications, and sufficiency of such applications.
(c) In the event that the Government and ADB agree to the establishment of an imprest account under the JFPR Project, the Government shall establish, immediately upon its confirmation of this Letter of Agreement or such later date as ADB may agree, an imprest account at a bank acceptable to ADB. The imprest account shall be established, managed, replenished and liquidated in accordance with ADB’s “Loan Disbursement Handbook” (2007, as amended from time to time), and detailed arrangements agreed upon between the Government and ADB. The initial amount to be deposited into the imprest account shall not exceed US$70,000. The total advance at any time to the account is not to exceed $300,000, which is the estimated average expenditure for 6 months.
Appendix 15 59
(d) The statement of expenditures (SOE) procedure may be used for reimbursement of eligible expenditures for the JFPR Project and to liquidate advances provided into the imprest account, in accordance with ADB’s “Loan Disbursement Handbook”, and detailed arrangements agreed upon between the Government and ADB. Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed $5,000.
13. (a) The Government shall furnish, or cause to be furnished, to ADB all such reports and information as ADB shall reasonably request concerning (i) the use of the JFPR Funds; (ii) the goods, services and other items of expenditure financed out of the proceeds of the JFPR Funds; (iii) the JFPR Project; and (iv) any other matters relating to the purposes of the JFPR Assistance.
(b) Without limiting the generality of the foregoing, the Government shall furnish, or cause to be furnished, to ADB quarterly, semiannual, and annual reports, as agreed by ADB, on the carrying out of the JFPR Project. Such reports shall be submitted in such form and detail as ADB shall reasonably request.
(c) Within three months after physical completion of the JFPR Project, the Government shall prepare and furnish to ADB a report, in such form and detail as ADB shall reasonably request, on the accomplishment of the purposes of the JFPR Assistance.
14. The Government shall cooperate with ADB to ensure that the JFPR Project is carried out promptly and effectively, and for this purpose, shall issue appropriate instructions to its officials, agents and representatives.
15. The Government and ADB shall, from time to time, at the request of either party, exchange views on the JFPR Project, and consult on any reports prepared by consultants or others and the implementation of any recommendation made in those reports.
16. ADB may use any reports prepared by consultants for any purpose which ADB may consider appropriate, and those reports may be made public unless otherwise agreed by the Government and ADB.
17. The Government may at any time request ADB in writing to terminate the JFPR Assistance.
18. (a) ADB may at any time suspend or, after consultation with the Government, terminate the JFPR Assistance if any circumstances arise which, in the opinion of ADB, interfere or threaten to interfere with the successful implementation of the JFPR Project, the accomplishment of its purposes, or the execution of the JFPR Project in accordance with the terms and conditions of this Letter of Agreement.
(b) ADB may cancel the JFPR Assistance if implementation of the JFPR Project and related disbursements do not start within six months after the execution of this Letter of Agreement.
(c) ADB may cancel the JFPR Assistance if any ADB loan operations related to the JFPR Project are cancelled.
(d) If at any time ADB determines, (i) after consultation with the Government, that any amount of the JFPR Assistance will not be required for the purposes of the JFPR Project, or (ii) that corrupt, fraudulent, collusive or coercive practices, as determined by ADB, were engaged in by representatives of the Government or any beneficiary under the JFPR Project
60 Appendix 15