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Accelerated Rural Electrification Project (RRP MYA 53223) Project Administration Manual Project Number: 53223-001 Loan Number: XXXX November 2020 Republic of the Union of Myanmar: Accelerated Rural Electrification Development Project ABBREVIATIONS ADB – Asian Development Bank APFS – audited project financial statements CBA – community based assessment ECD – Environmental Conservation Department EMP – environmental management plan EIA – environmental impact assessment ESE – Electricity Supply Enterprise FMA – financial management assessment IEE – initial environmental examination MOEE – Ministry of Electricity and Energy OAG – Office of the Auditor General OCB – open competitive bidding PAM – project administration manual PIC – project implementation consultant PIU – project implementation unit PMU – project management unit REGDP – resettlement and ethnic group development plan SEMP – site environmental management plan SCS – Stakeholder Communication Strategy SPS – ADB’s Safeguard Policy Statement 2009 Weights and Measures km – kilometer kV – kilovolt MVA – megavolt-ampere CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 2 A. Project Readiness Activities 2 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 7 A. Cost Estimates Preparation and Revisions 7 B. Key Assumptions 8 C. Detailed Cost Estimates by Expenditure Category 9 D. Allocation and Withdrawal of Loan Proceeds 10 E. Detailed Cost Estimates by Financier 11 F. Detailed Cost Estimates by Outputs and/or Components 12 G. Detailed Cost Estimates by Year 13 H. Contract and Disbursement S-Curve 14 I. Fund Flow Diagram 15 V. FINANCIAL MANAGEMENT 16 A. Financial Management Assessment 16 B. Disbursement 17 C. Accounting 18 D. Auditing and Public Disclosure 18 VI. PROCUREMENT AND CONSULTING SERVICES 19 A. Advance Contracting 19 B. Procurement of Goods, Works, and Consulting Services 19 C. Procurement Plan 20 D. Consultant's Terms of Reference 25 VII. SAFEGUARDS 25 VIII. GENDER AND SOCIAL DIMENSIONS 31 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 32 A. Project Design and Monitoring Framework 32 B. Monitoring 36 C. Evaluation 38 D. Reporting 39 E. Stakeholder Communication Strategy 39 X. ANTICORRUPTION POLICY 40 XI. ACCOUNTABILITY MECHANISM 41 XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 41 Project Administration Manual Purpose and Process 1. 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 policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. 2. The Ministry of Electricity and Energy (MOEE) and Electricity Supply Enterprise (ESE) 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 MOEE, and ESE 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 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 between the PAM 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 PAM. I. PROJECT DESCRIPTION 1. The project will construct 44 substations of 66/33/11 kilovolts (kV) and about 1,006 kilometers (km) of 66 kV and 33 kV distribution lines in Ayeyarwady, Bago (East), and Magway regions and Kayin State in Myanmar. The project will establish for the first time in Myanmar, a computerized distribution automation system (DAS) to improve operational efficiency and reduce losses in the distribution systems. 1 The project will enable the government to electrify an additional 400,300 households in more than 2,815 villages, contributing to the achievement of the country’s plan of universal electricity access by 2030. The project aims to support Myanmar’s inclusive growth by expanding electricity access in rural areas; and improve the project regions’ response to the impacts of the coronavirus disease (COVID-19) pandemic through better access to information, education, and work opportunities. The technical assistance (TA) will support empowerment of women in villages for the safe and productive use of electricity in the project areas. 2. Impact and Outcome. The project is aligned with the following impact: (i) reliable and affordable electricity supply provided to support socio-economic development and poverty reduction, and (ii) universal electricity access achieved.2 The project will have the following outcome: capacity, regional coverage, and operational efficiency of power distribution system in Myanmar increased. 3. Output 1: New distribution facilities added to the distribution systems in Ayeyarwady, Bago (East), and Magway regions and Kayin State. This will be delivered by construction and commissioning of 44 distribution substations (18 in Ayeyarwady, 8 in Bago (East), 12 in Magway, and 6 in Kayin) and about 1,006 km of distribution lines (232 km in Ayeyarwady, 221 km in Bago (East), 315 km in Magway, and 238 km in Kayin). The location maps and details about the subprojects by region/state, number of townships, villages, and households to be electrified are shown in Appendix 1. 4. Output 2: New computerized distribution automation management system (DAS) established and pilot tested. This includes design, installation, and operation of a pilot DAS in each of the four project regions/state and Nay Pyi Taw; and training of ESE engineers in DAS operation. The DAS will optimize the power distribution operation by real-time monitoring, minimization of network faults, and fast detection of faults and restoration of power supply. 5. Output 3: Social and gender inclusive capacity of the Ministry of Electricity and Energy (MOEE), ESE, and village electrification committee (VEC) in the project areas enhanced. This will be delivered by through the implementation of the Gender Action Plan (GAP) and the development of a Gender Equity and Social Inclusion (GESI) roadmap for rural electrification, which the ESE will apply in the electrified rural areas. The GESI roadmap includes the policies and actions for ESE to mobilize gender-balanced village electrification committees (VECs) in (i) optimizing the demand for, and affordability of, connections for all households in newly electrified areas, and (ii) raising awareness on safe and efficient usage of electricity for time saving and livelihoods among women in ESE’s rural electrification program. 1 ADB provided a technical assistance to prepare the project. ADB. 2018. Technical Assistance for Southeast Asia Energy Sector Development, Investment Planning and Capacity Building Facility. Manila. 2 Government of Myanmar. 2018. Myanmar Sustainable Development Plan 2018- 2030. Nay Pyi Taw. Government of Myanmar. 2014. National Electrification Plan (Unpublished). Nay Pyi Taw 2 II. IMPLEMENTATION PLANS A. Project Readiness Activities Table 1: Project Readiness Activities Responsible Indicative Activities 2020 2021 Agency Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar ADB, Fact-finding mission MOEE/ESE Establish project ADB, implementation MOEE/ESE arrangements MOEE/ESE, DACU endorsement DACU Myanmar Parliament MOEE/ESE, approval Parliament Staff review meeting ADB Advance contracting ADB, actions (PIC) MOEE/ESE ADB, Loan negotiations MOPFI, MOEE/ESE ADB Board approval ADB Loan signing ADB, MOPFI ADB, Loan effectiveness MOPFI, MOEE/ESE ADB = Asian Development Bank, DACU = Development Assistance Coordination Unit; ESE = Electricity Supply Enterprise, MOEE = Ministry of Electricity and Energy, MOPFI = Ministry of Planning, Finance and Industry, PIC = project implementation consultant Source: ADB staff estimates. 3 B. Overall Project Implementation Plan 6. It is envisaged that the project implementation period is 72 months. The project is expected to be physically completed by 30 June 2027. Monitoring of project performance and outcome will be until 31 December 2027, including preparation of project completion report. Loan closing date is 31 December 2027. The project preparation milestones and overall project implementation schedule are as follows: Table 2: Overall Project Implementation Schedule 2020 2021 2022 2023 2024 2025 2026 2027 2028 Indicative Activities Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II Establishment of project management unit (PMU) and project implementation units (PIUs) Advance contracting actions for project implementation
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