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Project Administration Memorandum Project Administration Memorandum Project Number: 33042 Loan Number: 2124 October 2005 TAJ: Irrigation Rehabilitation Project The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes. Asian Development Bank PROJECT ADMINISTRATION MEMORANDUM (PAM) IRRIGATION REHABILITATION PROJECT (LOAN NO. 2124-TAJ(SF) AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES DIVISION EAST AND CENTRAL ASIA DEPARTMENT Plamen Bozakov Water Resources Specialist Telephone No. (63 2) 632 6805 Fax No. (63 2) 636 2301 E-Mail: [email protected] Leonie C. Francisco Associate Project Analyst Telephone No. (63 2) 632 6345 Fax No. (63 2) 636 2301 E-Mail: [email protected] October 2005 CURRENCY EQUIVALENTS (as of 31 October 2004) Currency Unit – somoni (TJS) TJS1.00 = $0.3351 $1.00 = TJS2.9839 ABBREVIATIONS ADB – Asian Development Bank ARP – Agriculture Rehabilitation Project CSP – country strategy and program EA – executing agency IEE – initial environmental examination EIRR – economic internal rate of return FAO – Food and Agriculture Organization of the United Nations I&D – irrigation and drainage GDP – gross domestic product IPM – integrated pest management LCB – local competitive bidding M&E – monitoring and evaluation MWRLR – Ministry of Water Resources and Land Reclamation NGO – nongovernment organization NPV – net present value O&M – operation and maintenance PMO – project management office PRSP – Poverty Reduction Strategy Paper RO – regional office SDR – special drawing rights SCNPF – State Committee for Nature Protection and Forestry TA – technical assistance WUA – water users’ association WEIGHTS AND MEASURES ha – Hectare mt – metric ton m2 – square meter m3 – cubic meter t – ton NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars. This report was prepared by a team consisting of P. Bozakov (Mission Team Leader) and L. Francisco (Mission Member/Associate Project Analyst). i CONTENTS Page CONTENTS i INTRODUCTION iii LOAN PROCESING HISTORY iv I. PROJECT DESCRIPTION 1 A. Area, Location, Objectives and Scope 1 B. Components and Outputs 1 C. Policy Reforms in the Project Areas 1 D. Special Features 2 II. COST ESTIMATES AND FINANCING PLAN 2 A. Cost Estimates 2 B. Financing Plan 3 C. Allocation of Loan Proceeds 3 III. IMPLEMENTATION ARRANGEMENTS 6 A. Project Management, Monitoring and Evaluation 6 IV. IMPLEMENTATION SCHEDULE 7 V. CONSULTANT RECRUITMENT 7 VI. PROCUREMENT 9 A. Procurement Under the Project B. Advance Procurement Action and Rectroactive Financing 9 VII. DISBURSEMENT ARRANGEMENTS 10 VIII. PROJECT PERFORMANCE MONITORING AND EVALUATION 10 IX. REPORTING REQUIREMENTS 11 X. AUDITING REQUIREMENTS 12 XI. MAJOR LOAN COVENANTS 12 XII. IMPLEMENTATION OF THE ACCOMPANYING TA 13 XIII. KEY PERSONS INVOLVED IN THE PROJECT 13 XIV. ANTICORRUPTION 13 XV. OTHERS 14 ii APPENDIXES 1 Logical Framework of the Project 2 Description of the Project Components 3 Detailed Cost Estimates by Components 4 Detailed Cost Estimates and Financing Plan 5 Organization Chart 6-A Implementation Schedule 6-B Comparison of Planned and Actual Implementation Schedule 6-C Changes in Implementation Arrangements 7-A Detailed Terms of Reference for Consultants 7-B General Guidelines on the Use of Consulting Services 8 Indicative Contract Packages 9 Procurement of Civil Works, Goods and Services 10 Disbursement Modalities 11 Project Peformance Report (PPR) 12 Project Progress Report 13 Conract Awards and Disbursement Projections (Quarterly/Yearly) 14 Sample Audit Letter 15 Loan Covenants 16 Associated TA for Support for Monitoring Policy Reforms and Improving Farm and Water Management 17 Key Persons Involved in the Project 18 List of Publications and Guidelines for Reference iii INTRODUCTION 1. This Project Administration Memorandum (PAM) contains project data and information that allows the Borrower, Executing Agency (EA), Implementing Agency (IA), and the Asian Development Bank (ADB) to monitor project implementation and evaluate project impact. To this end, this PAM is aimed to: (i) provide concise and accurate detail, including maps and diagrams, on major aspects of project implementation, (ii) specify roles and responsibilities of the EA, IA, consultants, and ADB for the various actions required for satisfactory project implementation, (iii) assist project administration staff of the EA, IA, and ADB to anticipate problems and initiate timely remedial actions or recommendations, (iv) contain a logical framework, including subsequent revisions that confirm the goal, purpose, outputs, activities, inputs, targets, indicators, key assumptions, and risks, (v) provide a framework and checklist for monitoring progress to allow remedial actions and mistream modifications to meet project objectives, (vi) promote systematic monitoring and evaluation of project objectives and assessment of impacts on project beneficiaries through surveys, studies, and periodic and midterm reviews, (vii) provide the format and instructions for the EA and IA to periodically update the project performance report in its current revised format, and (viii) reference ADB’s Anticorruption Policy, indicating how ADB may be contacted about allegations of corruption and fraud. 2. To ensure its usefulness, the PAM should be an active document, progressively updated, and revised as and when necessary, particularly during midterm review and following any changes in project costs, scope, or implementation arrangements. Changes made to PAM should be added to the PAM as an addendum, rather than replacing the earlier portion. This will help in reconciling historical records and in preparing the future project completion report. Notes: Borrower in this PAM refers to the Republic of Tajikistan and/or the Executing Agency. iv LOAN PROCESSING HISTORY Approval of preparatory technical assistance 14 July 2003 Fact-finding Jan/Aug 2004 Management review meeting (MRM) 30 Aug 2004 Appraisal mission 6-16 Sep 2004 Staff review committee (SRC) 18 Oct 2004 Loan negotiations 10-12 Nov 2004 Board circulation 09 Dec 2004 Board consideration and approval 10 Dec 2004 Loan agreement signing 25 May 2005 Loan effectiveness 6 Sept 2005 1 I. PROJECT DESCRIPTION A. Area, Location, Objectives and Scope 1. The Project’s goal is to improve the living standards of the rural population in the project areas. The purposes of the Project are to increase productivity and income of rural communities in the project areas, and to improve the access of the rural population to potable water supply. The Project will cover the four poorest provinces of the country. In the northern province of Sughd, work will be carried out on the Asht-1 irrigation scheme. In the Central Region of Republican Subordination, irrigation systems in Vahdat district will be targeted. In the southern province of Khatlon, work will be done in both Farkhor and Panj districts. In the remote eastern Gorno-Badakhshan Autonomous Oblast, the irrigation infrastructure in Rushon will be repaired. An estimated 262,000 beneficiaries live in the project areas, of whom 153,000 are poor. During stakeholder meetings at the project sites, three general themes emerged as causes of poverty: lack of reliable irrigation and drinking water supplies, limited opportunities to become independent farmers, and lack of jobs. These causes are addressed in the project design. B. Components and Outputs 2. To achieve higher crop productivity and income of rural communities, the Project will (i) rehabilitate the selected irrigation infrastructure and support improved water management; (ii) rehabilitate the selected water supply schemes and establish water supply committees for sustained O&M; (iii) provide agricultural support to farmers; and (iv) establish appropriate mechanisms for project management, monitoring, and evaluation. 3. The key outputs of the Project in terms of increasing productivity and rural incomes are (i) rehabilitated I&D systems at the project sites, (ii) improved water management, and (iii) improved agricultural practices and technologies. The key outputs to improving access to safe drinking water are the reconstruction of potable drinking water supply systems and improved participatory management of these facilities. The Project’s outputs also include the establishment of a project management office. Appendix 1 outlines the Project Framework to indicate how these components will be implemented to attain the Project objective. The description of project components is in Appendix 2. C. Policy Reforms in the Project Areas 4. To deepen the ongoing agriculture sector reforms, the Government has agreed to implement specific pilot-based reform actions in the project areas, including (i) improved farm structure, operations, and management based on market-oriented principles; (ii) removal of cotton production quotas, and involvement of local authorities in directing cotton credit; (iii) issuance of tradable land lease certificates that can then be used as collateral; and (iv) introduction of open cotton sales. These actions would help farms reorganize into a proper size, under self-elected farm managers; accelerate land reforms; and substantially improve the profitability, and hence productivity, of cotton, as well as of other crops. To help the Government successfully implement these reforms, an associated
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