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Project Readiness Financing for Urban Project Readiness Financing Project Administration Manual Project Number: 51296-001 Loan Number: {PRFXXXX} September 2019 People’s Republic of Bangladesh: Urban Infrastructure Improvement Preparatory Facility CONTENTS I. IMPLEMENTATION PLAN 1 A. Overall Implementation Plan 1 II. PROJECT MANAGEMENT ARRANGEMENTS 3 A. Project Implementation Organizations: Roles and Responsibilities 3 B. Key Persons Involved in Implementation 7 III. COSTS AND FINANCING 8 A. Key Assumptions 8 B. Allocation and Withdrawal of Loan Proceeds 8 C. Detailed Cost Estimates by Expenditure Category and Financier 10 D. Detailed Cost Estimates by Year 11 E. Contract and Disbursement S-Curve 12 IV. FINANCIAL MANAGEMENT 13 A. Financial Management Assessment 13 B. Disbursement 15 C. Accounting 17 D. Auditing and Public Disclosure 18 V. PROCUREMENT AND CONSULTING SERVICES 19 A. Advance Contracting 19 B. Procurement of Consulting Services 20 C. Procurement of Goods and Civil Works 20 D. Procurement Plan 20 E. Consultant's Terms of Reference 20 VI. SAFEGUARDS 21 VII. GENDER AND SOCIAL DIMENSIONS 22 VIII. PERFORMANCE MONITORING 22 A. Monitoring 22 B. Reporting 23 IX. ANTICORRUPTION POLICY 23 X. ACCOUNTABILITY MECHANISM 24 XI. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 24 List of Appendixes Appendix 1: List of Ensuing Projects Appendix 2: Necessary Manpower to Implement the Proposed Facility Appendix 3: Procurement Plan Appendix 4: Detailed Terms of Reference of Consulting Packages Appendix 5: Executing Agency's Progress Report Contents Project Administration Manual for Project Readiness Financing: Purpose and Process The project administration manual (PAM) for project readiness financing (PRF) is an abridged version of the regular PAM of the Asian Development Bank (ADB) and describes the essential administrative and management requirements to implement PRF following the policies and procedures of the government and ADB. The PAM should include references to all available templates and instructions either by linking to relevant URLs or directly incorporating them in the PAM. The executing and implementing agencies, i.e., Department of Public Health Engineering (DPHE) and Narayanganj City Corporation (NCC), are wholly responsible for the implementation of ADB-financed PRF projects, as agreed between the borrower and ADB, and following the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation, including compliance by DPHE and NCC of their obligations and responsibilities for PRF project implementation following ADB’s policies and procedures. In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the PRF loan agreement will prevail. After ADB’s approval of the PRF proposal, changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in this PAM. ABBREVIATIONS ADB – Asian Development Bank DPHE – Department of Public Health Engineering DWASA – Dhaka Water Supply and Sewerage Authority EARF – environmental assessment review framework EMP – environmental management plan EOI – expression of interest ERD – Economic Relations Division GAF – gender action framework GAP – gender action plan IEE – initial environmental examination IPP – indigenous people plan IPPF – indigenous people plan framework LGD – Local Government Division MOF – Ministry of Finance NCC – Narayanganj City Corporation PMU – project management unit PRF – project readiness financing SOE – statement of expenditures SPS – Safeguards Policy Statement TA – technical assistance TOR – terms of reference TPP – technical assistance project proposal UIIPF – Urban Infrastructure Improvement Preparatory Facility I. IMPLEMENTATION PLAN A. Overall Implementation Plan 1. Table 1 presents the overall implementation plan for the project readiness facility (PFR) and records key implementation activities. This will be updated annually and submitted to Asian Development Bank (ADB) with updated contract and disbursement projections. Table 1: Overall Implementation Plan Advance Actions PRF Year 1 PRF Year 2 PRF Year 3 Activities 2018 2019 2020 2021 2022 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 A. Implementation DPHE component Consultant Advertisement Consultant Selection Contract Award Output 1: Feasibility studies and detailed designs of urban projects completed Output 2: Other project preparatory activities for urban projects supported Output 3: Institutional capacity of implementing agencies strengthened NCC component Consultant Advertisement Consultant Selection Contract Award Output 1: Feasibility studies and detailed designs of urban projects completed Output 2: Other project preparatory activities for urban projects supported Output 3: Institutional capacity of implementing agencies strengthened 2 Advance Actions PRF Year 1 PRF Year 2 PRF Year 3 Activities 2018 2019 2020 2021 2022 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 B. Management Activities Loan negotiation ADB Board approval Loan signing Loan effectiveness Submission of semiannual progress report Submission of consolidated annual report Submission of AFS Submission of APFS Projected date of ensuing loan - DPHE Projected date of ensuing loan - NCC Note: Land acquisition and resettlement will be completed prior to start of civil works. This will be scheduled and closely monitored with sufficient budget allocation from the government. AFS = audited financial statement, APFS = audited project financial statement, DPHE = Department of Public Health Engineering, NCC = Narayanganj City Corporation, PCR = project completion report, PRF = project readiness financing. Source: Asian Development Bank. 3 II. PROJECT MANAGEMENT ARRANGEMENTS A. Project Implementation Organizations: Roles and Responsibilities 2. The stakeholders’ role and responsibility in the project are presented in Table 2 below. 3. Project Steering Committee. A project steering committee, chaired by the Secretary of the Local Government Division (LGD), will be established to provide policy guidance and overall coordination of the facility implementation including all three components. The project management units (PMUs) of both components will coordinate with each other to serve as secretariat of the steering committee. 4. Department of Public Health Engineering component. Department of Public Health Engineering (DPHE) will be the executing agency for this component. A dedicated PMU with full time staff will be established within DPHE promptly after technical assistance project proposal (TPP) approval. A project implementation committee will be established at DPHE headquarters to coordinate and consult with representatives of the hill district councils and pourashavas of each target towns. This committee will ensure citizen participation in the project, and greater transparency. The committee will be chaired by chief engineer of DPHE and PMU will serve as secretariat. Project coordination committees will be established at DPHE district offices in the target towns to coordinate with members of the respective district councils. In the three hill district towns, the committee will be chaired by the chairpersons of hill district councils. In other towns, the committee will be chaired by the mayor of pourashavas. DPHE district offices will serve as secretariat. 5. Narayanganj City Corporation component. Narayanganj City Corporation (NCC) will be the executing agency for this component. A dedicated PMU will be established within NCC promptly after TPP approval. A project coordination committee, chaired by the Mayor, will be established to review the findings of study and reflect the desire of the citizen in project design, support site selection of the project component, and review and monitor the progress and support to resolve the issues. 6. Security arrangement. The PMU of DPHE will closely coordinate with concerned stakeholders to smoothly make necessary security arrangement in the hill district towns especially for international consultants, such as obtaining prior security clearance and arranging security escorts while they work in the hill district towns. Table 2: Management Roles and Responsibilities Project Implementation Organizations Management Roles and Responsibilities Project Steering Committee • Review the recommendation of the project implementation committee for addressing Chairperson: Senior Secretary, Local Government problems that arise during project implementation Division (LGD), Ministry of Local Government, and to take decision accordingly. Rural Development and Co-operatives. • Give guideline or to formulate policies required for implementing project activities. Members: Executing/implementing agencies and • Look after any other matter related to project other concerned ministries and agencies: implementation. • The committee will meet at least once in every - Department of Public Health Engineering three months, and whenever deemed necessary. Department (DPHE) Component: • The committee should co-opt members from (i) Chief Engineer, DPHE following organizations: (ii) Director General, LGD 4 Project Implementation Organizations Management Roles and Responsibilities (iii) Additional Secretary (WS), LGD (i) Representative from Ministry of Chittagong (iv) Joint Chief, Physical Infrastructure, Hill Tracts Affairs Planning Commission (ii) Representative from
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