F Pro ject Administration Memorandum Project Number: 43001 Grant Number: 0150 September, 2009 Nepal: Emergency Flood Damage 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. CURRENCY EQUIVALENTS (as of 1 March 2009) Currency Unit – Nepalese rupee/s (NRe/NRs) NRe1.00 = $0.0122 $1.00 = NRs81.823 ABBREVIATIONS ADB – Asian Development Bank CQS – Consultants’ Qualifications Selection DADO – District Agriculture Development Office DOA – Department of Agriculture DOI – Department of Irrigation DOR – Department of Roads DWIDP – Department of Water Induced Disaster Prevention DWSS – Department of Water Supply and Sewerage DRO – District Road Office EA – Executing Agency GBO – Groundwater Branch Office IA – Implementing Agency ICB – International Competitive Bidding ICS – Individual Consultants Selection IEE – Initial Environmental Examination IDD – Irrigation Development Divisions LDO – Local Development Officer MOF – Ministry of Finance MPPW – Ministry of Physical Planning and Works NCB – National Competitive Bidding NVC – National Vigilance Center NGO – Non Government Organization NPMCC – National Project Management Coordination Committee PCO – Project Coordination Office PIU – Project Implementation Unit PSC – Project Steering Committee PPMO Public Procurement Monitoring Office PPA – Public Procurement Act PPR – Public Procurement Regulations SOE – Statement of Expenditures SPIU – Subproject Implementation Units STW – Shallow Tube Well UNDP – United Nations Development Programme VDC – Village Development Committee NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 15 July. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2009 ends on 15 July 2009. (ii) In this report, "$" refers to US dollars. 2 CONTENTS Page MAP GRANT PROCESSING HISTORY i DESIGN AND MONITORING FRAMEWORK ii I. PROJECT DESCRIPTION A. Project Area and Location 1 B. Impact and Outcome 1 C. Outputs 1 D. Special Features 5 II. COST ESTIMATES AND FINANCING PLAN A. Cost Estimates 6 B. Financing Plan 7 C. Allocation and Withdrawal/Grant Proceeds 7 III. IMPLEMENTATION ARRANGEMENTS A. Executing and Implementing Agencies 9 B. Project Steering Committee 9 C. Project Management 9 IV. IMPLEMENTATION SCHEDULE 11 V. COST ESTIMATES AND FINANCING PLAN DURING IMPLEMENTATION 11 VI. RECRUITMENT OF CONSULTANTS 11 VII. PROCUREMENT 14 VIII. DISBURSEMENT PROCEDURES 15 IX. PROJECT MONITORING AND EVALUATION 16 X. REPORTING REQUIREMENTS 17 XI. AUDITING REQUIREMENTS 17 XII. SAFEGUARD REQUIREMENTS 18 XIII. MAJOR GRANT COVENANTS 19 XIV. KEY PERSONS INVOLVED IN THE PROJECT 20 XV. ANTICORRUPTION 21 3 APPENDIXES 1. Detailed Cost Estimates, Financing Plan, and Allocation 2. Project Management Structure 3. Project Implementation Schedule 4. Detailed Cost Estimate during Implementation 5. Contract Award and Disbursement Projections 6. Detailed Terms of Reference for Consulting Services 7. Procurement Plan 8. Sample Withdrawal Application 9. Performa for Project Progress Report 10. Performa for Preparing the Project Completion Report 11. Sample Audit Letter 12. Summary IEE 13. Involuntary Resettlement Framework 14. Gender Equality and Social Inclusion Plan 15. Major Covenants 16. Copy of ADB’s Anticorruption Policy 4 i GRANT PROCESSING HISTORY Date (a) Grant Fact-Finding 12-23 January 2009 (b) Management Review Meeting (MRM) 6 March 2009 (c) Grant Negotiations 19-20 March 2009 (d) Board Circulation 27 March 2009 (e) Board Consideration and Approval 21 April 2009 (f) Grant Agreement Signing 3 August 2009 (g) Grant Effectiveness 25 August 2009 ii DESIGN AND MONITORING FRAMEWORK Design Performance Targets and Data Sources and Summary Indicators a Reporting Mechanisms Assumptions and Risks Impact Sustained growth of District level gross (i) National economic data economic activities by domestic product growth is and indicators minimizing the devastating restored to pre-flood level (ii) District statistics and impact of the 2008 1 year after project data, surveys monsoon floods mainly in completion the three flood-affected districts Outcome Assumptions Quickly restored economic (i) Agriculture productivity (i) Project progress reports (i) Complementary post-flood activities mainly in the three restored on 7,940 ha, (ii) Project review missions recovery assistance provided districts and improved including 2,500 ha of (iii) Surveys and (ii) Strong government livelihoods of about severely damaged land socioeconomic survey commitment to provide flood 300,000 flood-affected and 1,518 ha through as part of project recovery funds and counterpart people provision of 700 shallow completion report funds tube wells (iii) Adequate government (ii) Total income of flood- provision of annual affected people restored maintenance funds to the pre-flood level of (iv) Adoption of anticorruption NRs1,246 million measures (iii)Rehabilitated infrastructure adopts Risk appropriate flood- (i) Future floods may occurred resistant design during the project period standard (iv)Capacity of flood preparedness improved Outputs Assumptions 1. Agriculture livelihoods (i) Agriculture revived by (i) Project progress reports (i) Timely recruitment of NGOs of affected people in distributing agriculture (ii) Audit reports (ii) Timely assignment of 22 village development inputs for damaged (iii) Project review missions counterpart staff committee areas restored farmland of 7,940 ha by (iv) Surveys June 2012 (ii) Some 2,840 families provided with technical and in-kind assistance to farm silted and riverbed land by June 2012 (iii) 52 fishponds, 70 on- farm watercourses, 22 agriculture collection centers, 19 markets centers, and 10 agriculture service centers rehabilitated 2. Damaged irrigation Irrigation structures of (i) Project progress reports Assumptions facilities reconstructed and 2 large and 25 small (ii) Audit reports (i) Timely awards of civil works rehabilitated surface irrigation schemes (iii) Project review missions contracts covering 11,540 ha (iv) Surveys (ii) Satisfactory performance by rehabilitated by June 2011 national contractors iii DESIGN AND MONITORING FRAMEWORK Design Performance Targets and Data Sources and Summary Indicators a Reporting Mechanisms Assumptions and Risks 3. Access to drinking 28 gravity flow water supply (i) Project progress reports Assumptions water and sanitation of the systems in the far western (ii) Audit reports (i) Timely awards of civil works flood-affected people region rehabilitated by June (iii) Project review missions contracts improved 2011, 4 small overhead (iv) Surveys (ii) Satisfactory performance by water supply systems national contractors constructed by June 2012, and 3,500 shallow tube wells installed by June 2010 in Sunsari district for 22,000 households 4. Strategic road network About 50 km of strategic (i) Customs data Assumptions rehabilitated and improved roads in the far western (ii) Project progress reports (i) Timely import of essential region rehabilitated by June goods and services required 2011, and a bridge on the for flood and cyclone related Koshi River constructed by recovery and rehabilitation June 2012 at Chatara to (ii) Timely recruitment of substitute the present low consultants capacity ferries and provide better access during similar floods in the future 5. Project management (i) Effective and efficient (i) Project progress reports Assumptions system operational project implementation (ii) Audit reports (i) Timely recruitment of NGOs through timely recruited (iii) Project review missions and consultants consulting services by (ii) Close coordination between June 2009 and the project coordination office procurement of goods and the Department of Water and civil works by Induced Disaster Prevention October 2009 (ii) Strengthened capacity (i) Flood forecasting system of flood preparedness for Koshi River of the Government by (ii) Early warning system for June 2012 Koshi River Activities with Milestones Inputs 1.1 Rehabilitate agriculture in 7,940 ha farmland by June 2012 by providing ADB agricultural inputs, materials and equipment in order to grow cash crops in the International consultants and highly affected areas and cultivate cereals in partly affected areas national consultants input, and 1.2 Train 7,730 families by June 2012 for reclaiming soil fertilities Asian Development Bank grant of 2.1 Rehabilitate 27 surface irrigation systems by June 2011 $25.60 million 2.2 Install 700 shallow tube wells for supplementary irrigation by June 2012 3.1 Rehabilitate 28 gravity flow water supply systems by June 2012 Government 3.2 Install 3,500 shallow tube wells to provide access drinking water by June 2012 Counterpart funding and in-kind 3.3 Construct four small overhead water supply systems by June 2012 contribution equal to $6.40 million, 4.1 Rehabilitate damaged 50 Kms of strategic roads in the far west by June 2011 and all relevant reports, documents, 4.2 Construct a Koshi bridge at Chatara by June 2012 and information made available as needed I. PROJECT DESCRIPTION A. Project Area and Location 1. The Project is located in the three districts affected by the devastating 2008 flood in Nepal. The Three districts are Sunsari District in the Eastern Development Region and Kailali and Kanchanpur Districts in Far Western Development Region of Nepal. B. Impact