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Democratic Socialist Republic of Sri Lanka: Second Integrated Road Investment Program

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Second Integrated Road Investment Program (RRP SRI 50301-001) Facility Administration Manual Project Number: 50301-001 MFF number: xxxx 10 August 2017 Democratic Socialist Republic of Sri Lanka: Second Integrated Road Investment Program ABBREVIATIONS ADB – Asian Development Bank CRC – conventional road contract DMF – design and monitoring framework EARF – environmental assessment and review framework EMP – environmental management plan ESDD – Environment and Social Development Division EWCD – elderly, women, children, and disabled FIDIC – International Federation of Consulting Engineers GAP – gender action plan ICB – international competitive bidding IEE – initial environmental examination IPP – indigenous peoples plan IPPF – indigenous peoples planning framework iRoad 2 – Second Integrated Road Investment Program MFF – multitranche financing facility MOHEH – Ministry of Higher Education and Highways NCB – national competitive bidding PBM – performance-based maintenance PFR – periodic financing request PIC – project implementation consultant PIU – project implementation unit PPMS – project performance management system RDA – Road Development Authority RRP – report and recommendation of the President SAPE – survey and preliminary engineering SLRs – Sri Lanka rupees SOE – statement of expenditure CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 1 A. Project Readiness Activities 1 B. Overall Project Implementation Plan 3 III. PROJECT MANAGEMENT ARRANGEMENTS 4 A. Project Implementation Organizations: Roles and Responsibilities 4 B. Key Persons Involved in Implementation 5 C. Project Organization Structure 6 IV. COSTS AND FINANCING 12 A. Cost Estimates Preparation and Revisions 13 B. Key Assumptions 13 C. Detailed Cost Estimates by Expenditure Category and Financier – Facility 14 D. Allocation and Withdrawal of Loan Proceeds for Tranche 1 16 E. Detailed Cost Estimates by Year 17 F. Contract and Disbursement S-Curve 18 G. Fund Flow Diagram 19 V. FINANCIAL MANAGEMENT 19 A. Financial Management Assessment 19 B. Disbursement 20 C. Accounting 22 D. Auditing and Public Disclosure 22 VI. PROCUREMENT AND CONSULTING SERVICES 23 A. Advance Contracting and Retroactive Financing 23 B. Procurement of Goods, Works, and Consulting Services 23 C. Procurement Plan 24 D. Consultant’s Terms of Reference 24 VII. SAFEGUARDS 24 A. Environment 24 B. Involuntary Resettlement 26 C. Indigenous Peoples 26 D. Grievance Redress Mechanism 27 E. Prohibited Investment Activities 27 VIII. GENDER AND SOCIAL DIMENSIONS 27 A. Gender and Development 27 B. HIV/AIDS 29 C. Health 29 D. Labor 30 IX. PERFOMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 30 A. Project Design and Monitoring Framework 30 B. Monitoring 30 C. Evaluation 31 D. Reporting 32 E. Stakeholder Communication Strategy 32 X. ANTICORRUPTION POLICY 33 XI. ACCOUNTABILITY MECHANISM 33 XII. RECORD OF CHANGES TO THE FACILITY ADMINISTRATION MANUAL 34 APPENDIX A I. LIST OF PROJECTS 35 II. LIST OF EQUIPMENT 79 III. DESIGN AND MONITORING FRAMEWORK 83 APPENDIX B PROCUREMENT PLAN 85 APPENDIX C I. TERMS OF REFERENCE FOR EASTERN PROVINCE 107 II. TERMS OF REFERENCE FOR NORTHERN PROVINCE 123 III. TERMS OF REFERENCE FOR UVA PROVINCE 139 IV. TERMS OF REFERENCE FOR WESTERN PROVINCE 155 V. ENHANCEMENT OF RESEARCH AND DEVELOPMENT DIVISION 171 VI. MECHANICAL–EMPIRICAL PAVEMENT DESIGN CONSULTANTS 173 VII. OUTLINE TERMS OF REFERENCE FOR INDIVIDUAL CONSULTANTS (ADVISORY SERVICE) 175 APPENDIX D GENDER ACTION PLAN PROGRESS UPDATE FORMAT 179 Facility Administration Manual Purpose and Process 1. The facility administration manual (FAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the Government of the Democratic Socialist Republic of Sri Lanka and Asian Development Bank (ADB). The FAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the FAM. 2. The Ministry of Higher Education and Highways (MOHEH) and the Road Development Authority (RDA) are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by MOHEH and the RDA of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. 3. At loan negotiations, the borrower and ADB shall agree to the FAM and ensure consistency with the loan agreement. Such agreement shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the FAM and the loan agreement, the provisions of the loan agreement shall prevail. 4. After ADB Board approval of the project’s report and recommendations of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the FAM. I. PROJECT DESCRIPTION 1. The Second Integrated Road Investment Program for the Democratic Socialist Republic of Sri Lanka will improve the accessibility of the road network in rural areas and thereby increase the involvement of the rural population in nationwide economic and social development. The program, also called iRoad 2, will upgrade and maintain about 3,400 kilometers (km) of rural access roads to all-weather standard; rehabilitate and maintain at a good condition about 340 km of national roads in Eastern Province, Northern Province, Uva Province, and Western Province; and improve the capacity of road agencies with respect to safeguards, road safety, maintenance, research capacity, and road design and construction. 2. Impact and outcome. The impact of the investment program will be improved connectivity between rural communities and socioeconomic centers in Sri Lanka to align with the government strategy. The outcome will be increased transport efficiency on project roads. 3. Outputs. The outputs of the proposed time-slice multitranche financing facility (MFF) will be (i) improved road conditions of about 3,400 km rural roads and 340 km national roads between the selected rural communities and socioeconomic centers, and (ii) enhanced capacity of road agencies. A list of project roads under the MFF is in Appendix A.I. A list of equipment for research capacity enhancement is in Appendix A.II. II. IMPLEMENTATION PLANS A. Project Readiness Activities Table 1: Project Readiness Activities Month Loan Processing Project Implementation Year ADB Actions Government Actions ADB Actions Government Actions Cabinet approved the Finalization of bid Apr Review bid project in January documents and 2017 documents 2017 safeguard documents Finalize shortlist and May Fact-finding mission RFP for consultants 2017 and Submission 1 Review and Jun Aide Memoire approval of Advertise bidding 2017 endorsed Submission 1 for consulting packages Technical proposal opening, for consulting contracts Management review Jul meeting FFA signing Bid opening and start 2017 PFR 1 submitted technical bid Loan negotiations evaluation Submit technical bid evaluation to ADB Review and Financial proposal Aug approval of opening, preparation of 2017 Submission 2 for Submission 3 for consulting contracts consulting contracts 2 Month Loan Processing Project Implementation Year ADB Actions Government Actions ADB Actions Government Actions Review and approval of technical Financial bid opening bid evaluation and evaluation Review and approval of Submission 3 for Sep consulting contracts Loan approval Preparation of 2017 Submission 4 for Review and consulting contracts approval of financial bid evaluation Review and Oct approval of Loan signing 2017 Submission 4 for consulting contracts Contract award (Works contract) Nov 2017 Contract award (Consulting contracts) Dec Loan effectiveness 2017 Jan 2018 Feb 2018 Mar 2018 Q2 2018 Q3 2018 ADB = Asian Development Bank, FFA = framework financing agreement, PFR = periodic financing request, Q = quarter, RFP = request for proposals. Note: Procurement of civil works and recruitment of project implementation consultants will start with Uva Province, followed by the other provinces. Source: Asian Development Bank estimates. 3 B. Overall Project Implementation Plan Table 2: Project Implementation Plan 2017 2018 2019 2020 2021 2022 2023 2024 Item 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 M J J A S O 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 M J J A S O 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 A. Project Preparation Bidding documents preparation Procurement of civil works Establishment of PIU Recruitment of consultants B. Project Implementation Implementation of civil works PBM: 3 years for rural roads until 2023 Project implementation consultants 5 years for national roads until 2025 Procurement of equipment C. Capacity Development Research capacity enhancement M-E pavement design Road asset management Information Management System Road safety consultants Institutional support consultants M-E = mechanical–empirical, PBM = performance-based maintenance, PIU = project implementation unit. Note: Implementation of civil works will start with Uva Province, followed by the other provinces. Construction period is estimated at 2 years. Source:
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