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46081-002: Henan Sustainable Livestock Farming and Product Project Administration Manual Project Number: 46081-002 Loan No.: 3296 April 2021 People’s Republic of China: Henan Sustainable Livestock Farming and Product Safety Demonstration Project Project Administration Manual Project Number: 46081-002 Loan Number: L3296_PRC April 2021 People’s Republic of China: Henan Sustainable Livestock Farming and Product Safety Demonstration Project Table of Contents ABBREVIATIONS I. PROJECT DESCRIPTION ......................................................................................... 3 A. Rationale ....................................................................................................... 3 B. Impact and Outcome ...................................................................................... 5 C. Outputs .......................................................................................................... 5 II. IMPLEMENTATION PLANS .................................................................................... 13 A. Project Readiness Activities ......................................................................... 13 B. Overall Project Implementation Plan ............................................................. 14 III. PROJECT MANAGEMENT ARRANGEMENTS............................................................... 15 A. Project Implementation Organizations – Roles and Responsibilities ................ 15 B. Key Persons Involved in Implementation ....................................................... 18 C. Project Organization Structure ...................................................................... 20 IV. COSTS AND FINANCING ....................................................................................... 21 A. Investment and Financing Plans ................................................................... 21 B. Detailed Cost Estimates by Expenditure Category ......................................... 23 C. Allocation and Withdrawal of Loan Proceeds ................................................. 24 D. Detailed Cost Estimates by Financier ($ million) ............................................ 25 F. Detailed Cost Estimates by Year ($ million) ................................................... 29 G. Contract and Disbursement S-Curve ............................................................. 31 H. Fund Flow Diagram ..................................................................................... 32 V. FINANCIAL MANAGEMENT ........................................................................................... 33 A. Financial Management Assessment .............................................................. 33 B. Disbursement ............................................................................................... 34 C. Accounting ................................................................................................... 35 D. Auditing ....................................................................................................... 35 E. Financial Performance of the Project Participating Enterprises ....................... 36 VI. PROCUREMENT AND CONSULTING SERVICES ......................................................... 37 A. Advance Contracting and Retroactive Financing ............................................ 37 B. Procurement of Goods, Works, and Consulting Services ............................... 37 C. PROCUREMENT PLAN ............................................................................... 39 VII. SAFEGUARDS ............................................................................................................ 52 A. Environment ................................................................................................ 52 B. Resettlement and Land Leases..................................................................... 54 C. Indigenous Peoples ...................................................................................... 54 VIII. GENDER AND SOCIAL DIMENSIONS ........................................................................ 54 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION ................................................................................................. 58 A. Project Design and Monitoring Framework .................................................... 58 B. Monitoring .................................................................................................... 61 C. Evaluation .................................................................................................... 63 D. Reporting ..................................................................................................... 63 E. Stakeholder Communication Strategy ........................................................... 64 X. ANTICORRUPTION POLICY ................................................................................... 67 XI. ACCOUNTABILITY MECHANISM............................................................................ 67 XII. RECORD OF PAM CHANGES ................................................................................ 67 ANNEX 1: TRAINING PROGRAM ....................................................................................... 68 ANNEX 2: OUTLINE TERMS OF REFERENCE FOR PROJECT IMPLEMENTATION CONSULTANTS ..................................................................................................... 71 ANNEX 3: ENVIRONMENTAL SUSTAINABILITY MONITORING PROGRAM FOR OUTPUT 2 ............................................................................................................................... 80 ANNEX 4: SUBPROJECT SELECTION CRITERIA AND PROCESS .................................... 84 ANEEX 5: ENVIRONMENTAL MANAGEMENT PLAN ......................................................... 86 1 Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the government’s and the Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Henan provincial government (HPG), the project executing agency; and the implementing agencies, including Henan Provincial Department of Agriculture and Rural Affairs (HDARA) and the eight project participating enterprises (PPE) are wholly responsible for the implementation of the ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the government’s and ADB policies and procedures. The ADB staff is responsible to support implementation, including compliance by HPG, HDARA, and the eight PPEs of their obligations and responsibilities for project implementation in accordance with ADB policies and procedures. At loan negotiations, the borrower and ADB shall agree to the PAM 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 the PAM and the loan agreement, the provisions of the loan agreement shall prevail. After ADB Board approval of the project’s report and recommendations of the President, changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the project administration instructions); and upon such approval, they will be subsequently incorporated in the PAM. 2 CURRENCY EQUIVALENTS (as of July 2019) Currency unit – yuan (CNY) CNY1.00 = $0.1448 $1.00 = CNY6.9061 ABBREVIATIONS ADB = Asian Development Bank AFS = audited financial statements DMF = design and monitoring framework EIA = environmental impact assessment EIRR = economic internal rate of return EMP = environmental management plan EPB = environmental protection bureau FECC = Foreign Economic Cooperation Center GAP = gender action plan Henan Provincial Department of Agriculture and HDARA = Rural Affairs MARAB = Municipal Agriculture and Rural Affairs Bureau CARAB = County Agriculture and Rural Affairs Bureau HAHB = Henan Animal Husbandry Bureau Henan Livestock Product Quality Monitoring HLPQMIC = and Inspection Center Municipal Livestock Product Quality Monitoring MLPQMIC = and Inspection Center CLPQMIC = County Livestock Product Quality Monitoring and Inspection Center HDRC = Henan Development and Reform Commission HEPD = Henan Environmental Protection Department HFD = Henan Finance Department HPAO = Henan Poverty Alleviation Office HPG = Henan Provincial Government ICB = international competitive bidding IEE = initial environmental examination FIRR = financial internal rate of return FMA = financial management assessment GRM = grievance redress mechanism LIBOR = London interbank offered rate NCB = national competitive bidding PAM = project administration manual 3 PIC = project implementation consultant PMO = project management office PPE = project participating enterprise PPMS = project performance monitoring system PPTA = project preparatory technical assistance PRC = People’s Republic of China SOE = statement of expenditure SPS = Safeguard Policy Statement I. PROJECT DESCRIPTION 1. The Henan Sustainable Livestock Farming and Product Safety Demonstration Project aims to demonstrate model livestock production and processing with improved environmental sustainability and product safety in eleven project counties/districts in Henan Province. 1 The project will
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