Updated Facility Administration Manual

Project Numbers: 48404-002, 48404-003, 48404-004 MFF Number. 0101 Tranche 1: L3574 Tranche 2: LXXXX August 2021

Islamic Republic of Pakistan: Central Asia Regional Economic Cooperation Corridor Development Investment Program

ABBREVIATIONS

ADB – Asian Development Bank CAREC – Central Asia Regional Economic Cooperation COVID-19 – coronavirus diseases DFID – Department for International Development DMF – design and monitoring framework EIA – environment impact assessment EMP – environmental management plan FAM – facility administration manual GRM – grievance redress mechanism ICB – international competitive bidding ICS – individual consultant selection IEE – initial environmental examination LARP – land acquisition and resettlement plan LCS – least-cost selection MFF – multitranche financing facility NCB – national competitive bidding NHA – National Highway Authority NTCHIP – National Trade Corridor Highway Investment Program OCR – ordinary capital resources PPTA – project preparatory technical assistance QCBS – quality- and cost-based selection RRP – report and recommendation of the President SOE – Statement of Expenditure SPS – Safeguard Policy Statement SSEMP – site specific environmental management plan TOR – terms of reference

CONTENTS

Page

A. Project Readiness Activities 2 B. Overall Project Implementation Plan 3

A. Project Implementation Organizations: Roles and Responsibilities 6 B. Key Persons Involved in Implementation 7 C. Project Organization Structure 7

A. Cost Estimates Preparation and Revisions 13 B. Key Assumptions 13 C. Detailed Cost Estimates by Expenditure Category 13 D. Allocation and Withdrawal of Loan Proceeds 14 E. Detailed Cost Estimates by Financier 15 F. Detailed Cost Estimates by Outputs and/or Components 16 G. Detailed Cost Estimates by Year 19 H. Contract and Disbursement S-Curve 21 I. Fund Flow Diagram 23

A. Financial Management Assessment 23 B. Disbursement 25 C. Accounting 26 D. Auditing and Public Disclosure 26

A. Advance Contracting and Retroactive Financing 28 B. Procurement of Goods, Works, and Consulting Services 28

A. Environment 29 B. Land Acquisition and Resettlement 31 C. Indigenous Peoples 32 D. Execution of Contracts for Works 32

A. Project Design and Monitoring Framework 35 B. Monitoring 38 C. Evaluation 40 D. Reporting 40 E. Stakeholder Communication Strategy 41

Facility Administration Manual Purpose and Process

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 borrower and the 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.

The National Highway Authority (NHA) is 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 borrower and ADB. ADB staff is responsible for supporting implementation including compliance by NHA of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

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.

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 borrower and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the FAM.

PROJECT DESCRIPTION

1. The proposed multi tranche financing facility (MFF) will enhance regional connectivity and trade via the CAREC Corridors in Pakistan by improving the efficiency for road traffic along the CAREC Corridors. For this purpose, the proposed MFF will rehabilitate and upgrade the road network of 747 km constituting the CAREC Corridors mainly in Sindh, Punjab, and Khyber Pakhtunkhwa.

2. Investment program. The 12th CAREC Ministerial conference endorsed the CAREC Transport and Trade Facilitation Strategy 2020 (TTFS 2020) which set out operational priorities of the CAREC Program. Operational priorities are given to (i) development of multimodal corridor network focusing on road and rail network development, logistics center development, and border crossing points improvement; (ii) improvement of trade and border crossing services focusing on coordinated border management, customs modernization, integrated trade facilitation, and single window development; and (iii) improvement of operational and institutional effectiveness focusing on road maintenance, road safety, designated rail corridor, and policies and institutional development. The TTFS 2020 spelled out the priority investment projects for Pakistan covering 23 projects of $7.7 billion. The government’s Investment Program adopted the priority investment projects under the TTFS 2020.

3. Nonphysical investment for capacity development. In November 2015, ADB approved capacity development technical assistance of $15.4 million for the Enabling Economic Corridors through Sustainable Transport Sector Development as part of the Government of the United Kingdom’s assistance through the Pakistan Economic Corridors Program. The TA will deliver 4 outputs for capacity development for sustainable transport sector development in Pakistan: (i) national transport policy and master plan developed; (ii) multimodal transport facilitated within Pakistan and with its neighboring countries through (a) the effective implementation of the Transports Internationaux Routiers Convention and other international transport agreements to which Pakistan is a signatory; (b) preparing Pakistan for accession to other key agreements such as the Convention on the Contract for the International Carriage of Goods by Road; and (c) capacity building of relevant government staff and private sector stakeholders on international transport agreements; (iii) national road safety program implemented; and (iv) national road asset management system made functional by working on sustainable road investment and maintenance funding, upgrading NHA’s road asset management system, axel load controlling, and cleaning up NHA’s financial statements. Capacity development through the TA will cover the area of policy framework refinements, planning assistance, and institutional change management.

4. In addition, each tranche under the MFF will have components for (i) assistance with the implementation of a project approved under each tranche; and (ii) due diligence advisory services to help NHA prepare projects for subsequent tranches.

5. Impact and outcome. The MFF is aligned with the following impact: enhancement of regional connectivity and trade via the CAREC Corridors. The MFF will have the following outcome: efficiency for road traffic along the CAREC Corridors improved.

6. Outputs. Output 1: CAREC Corridor along N55 improved. 747 km of CAREC Corridor running along the Western side of the Indus River and passing Sindh, Punjab, and Khyber Pakhtunkhwa will be improved (see Table 6). Under Tranche 1, a total of 143 km will be constructed comprising of 66 km of Petaro–Sehwan road and 43 km of Ratodero–Shikarpur road will be improved by building a two-lane new carriageway along the existing two-lane carriageway road, and 34 km of existing four-lane carriageway road of Dara Adamkhel–Peshawar will be

2 rehabilitated. Under Tranche 2, 222-km Shikarpur–Rajanpur section will be dualized to four-lane from two-lane by building a two-lane new carriageway along the existing carriage way.

7. Output 2: NHA capacity developed. Capacity development under both the MFF and Tranche 1 will consist of (i) due diligence advisory services to help NHA prepare projects for subsequent tranches; and (ii) assistance with the implementation of a project approved under each tranche. Tranche 2 will help NHA implement the capacity development program, which is being formed with assistance of the United States Agency for International Development.

IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 1A: Project Readiness Activities for Tranche 1 2017 2018 Indicative Activities Q2 Q3 Q4 Q1 Q2 Q3 Q4 Responsible Unit Advance contracting actions  NHA and ADB Establish project implementation  NHA and ADB arrangements Approve and disclose safeguard  NHA and ADB documents Approve by ADB Board  ADB Sign loan agreement  ADB and Borrower Provide legal opinion  Borrower Declare loan effectiveness  ADB ADB = Asian Development Bank, NHA = National Highway Authority, Pakistan, Q = quarter. Source: Asian Development Bank estimates.

Table 1B: Project Readiness Activities for Tranche 2 2020 2021 Indicative Activities Q2 Q3 Q4 Q1 Q2 Q3 Q4 Responsible Unit Advance contracting actions  NHA and ADB Establish project implementation  NHA and ADB arrangements Approve and disclose safeguard  NHA and ADB documents Approve by ADB Board  ADB Sign loan agreement  ADB and Borrower Provide legal opinion  Borrower Declare loan effectiveness  ADB ADB = Asian Development Bank, NHA = National Highway Authority, Pakistan, Q = quarter. Source: Asian Development Bank estimates.

B. Overall Project Implementation Plan

8. A Gantt chart recording outputs with key implementation activities initially on a monthly basis that is updated annually and submitted to ADB with contract and disbursement projections for the following year.

Table 2: Overall Project Implementation Plan for the Facility 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 I. Pre-approval Activities

1.1 Approve and disclose safeguards documents

1.2 Government budget inclusion

1.3 Advance contracting actions and retroactive financing

1.4 Establish project implementation arrangements

II. CAREC Corridor along N55 Improved

2.1 Sign Financing Framework Agreement by August 2017

2.2 Submit and approve Periodic Financing Request for the Tranche 1 by the Government in Q3 2017

2.3 Complete due diligence works for the 2nd tranche project by December 2021

2.4 Submit and approve Periodic Financing Request for Tranche 2 by the Government in October 2020

2.5 Completed due diligence works for the 3rd tranche project by Q4 2022

2.6 Submit and approve Periodic Financing Request for Tranche 3 by the Government in Q2 2022

2.7 Complete due dilligence works for the 4th tranche project by June 2024

2.8 Submit and aprove Periodic Financing Request for Tranche 4 in Q2 2024

2.9 Implement and complete all civil works by Q1 2027

III. NHA Capacity Strengthened

3.1 Mobilize due diligence advisory services for Tranches 2, 3 and 4

3.2 Prepare due diligence reports including feasibility assessment, detailed design, and safeguard-related review and assessment for Tranches 2, 3 and 4 3.3 Prepare terms of reference for assistance for project implementation as need be and recruit consultants according to the schedule for project implementation

IV. Management Activities

4.1 Environment management plan key activities

4.2 Communication strategy key activities Tranche 1 Tranche 2 Tranche 3 Tranche 4 4.3 Mid-term review

4.3 Facility completion report Source: Asian Development Bank.

Table 3A: Overall Project Implementation Plan for Tranche 1 2017 2018 2019 2020 2021 2022 Activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 I. Pre-approval Activities

1.1 Approve and disclose safeguards documents

1.2 Government budget inclusion

1.3 Advance contracting actions and retroactive financing

1.4 Establish project implementation arrangements

II. Corridor along N55 constructed or rehabilitated

2.1 Select supervision consultants by 2018 Q4

2.2 Complete bid evaluation for civil works contract by 2018 Q4 and 2020 Q2 (for rebidding of Ratodero-Shikarpur section) 2.3 Mobilize contractors by 2019 Q1 (for Petaro-Sehwan and Dara Adam Kher-Peshawar) and in 2020 Q4 (for Ratodero- Shikarpur) 2.4 Complete land acquisition process by 2021 Q4

2.5 Complete payment for compensation and relocation of affected people by 2021 Q4

2.6 Complete civil works by 2022 Q2

III. NHA Capacity Strengthened

3.1 Recruit consultants for due diligence advisory services by 2018 Q4

3.2 Complete due diligence works for Tranche 2 by 2021 Q4

IV. Management Activities

4.1 Environment management plan key activities

4.2 Review and Mid-term review mission

4.3 Project completion report Source: Asian Development Bank.

Table 3B: Overall Project Implementation Plan for Tranche 2 2019 2020 2021 2022 2023 2024 2025 Activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 I. Pre-approval Activities

1.1 Approve and disclose safeguards documents

1.2 Government budget inclusion

1.3 Advance contracting actions and retroactive financing

1.4 Establish project implementation arrangements

II. Corridor along N55 constructed or rehabilitated

2.1 Select supervision consultants by 2021 Q4

2.2 Complete bid evaluation for civil works contract by 2021 Q4

2.3 Mobilize contractors in 2022 Q1

2.4 Complete land acquisition process by December 2021

2.5 Complete payment for compensation and relocation of affected people by December 2021

2.6 Complete civil works by 2024 Q2

III. NHA Capacity Strengthened

3.1 Recruit consultants for due diligence advisory services for Tranche 3 by 2021 Q3

3.2 Complete due diligence works for Tranche 3 by 2022 Q4

3.3 Implementation of NHA Training Program

IV. Management Activities

4.1 Environment management plan's implementation

4.2 Review and Mid-term review mission

4.3 Project completion report Source: Asian Development Bank.

PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Table 4: Roles and Responsibilities Project Implementation Organizations Management Roles and Responsibilities Project steering  Providing guidance on and oversight to the overall implementation and performance of the committee project.  Resolving issues and conflicts that would compromise quality of results, investment cost or project completion time.  Approving the annual activity plan.  Reviewing implementation progress and resolve issues.  Deputing/appointing staff for project implementation unit.  Reviewing performance of consultants and contractors.  Convening meeting on quarterly basis or as and when required. NHA (executing agency)  Overall project management; finalizing surveys, designs, bidding documents, and contract awards.  Overall construction supervision with the consultants, quantity and quality validation of civil works.  Ensuring timely agreed counterpart funds and approval of higher authorities for project activities.  Monitoring and evaluating project activities and outputs, including periodic review, preparation of review and progress reports reflecting issues and time-bound actions taken (or to be taken), and their timely submission to ADB.  Preparing regular periodic progress reports, monitoring and evaluation reports, and project completion report and their timely submission to ADB.  Endorsing to ADB through EAD the authorized staff in executing agency with approved signatures for processing payments and maintaining the advance account(s).  Establishing a sound financial management system, submitting timely withdrawal applications to ADB, conducting timely financial audits as per agreed timeframe, submitting audited project account reports, and taking recommended actions.  Processing and submitting to ADB any request, when required, for reallocating the loan proceeds.  Involving community villages along the project roads and civil society representatives in designing community facilitation centers and implementing them.  Publicly disclosing project outputs and procurement results.  Quality assurance of works, and services of consultants and counterpart staff.  Ensuring compliance with all loan covenants and reporting to ADB.  Preparing, implementing, and monitoring safeguards in accordance with the environmental assessment and review framework, initial environmental examination and/or environmental impact assessment, and environmental management plans, resettlement plans, ADB’s SPS (2009), and loan and project agreements.  Establishing a grievance redress mechanism with a dedicated grievance staff to address all subproject-related grievances.  Ensuring projects' sustainability during post-implementation stage and reporting to ADB on the achieved development impacts.  Responsible and accountable for the use of funds in the Advance Account and implement SOE procedure in accordance to applicable terms. ADB  Assisting NHA in providing timely guidance at each stage of the project implementation.  Reviewing all the documents that require ADB approval.  Reviewing and approving environmental assessment reports.  Reviewing and disclosing on ADB website the periodic environmental monitoring reports.  Conducting regular project review missions, a midterm review, and project completion mission.  Conducting environmental safeguard review missions including site visits.  Processing withdrawal applications and releasing eligible funds.  Updating regularly the project performance review reports with the assistance of NHA.

Project Implementation Organizations Management Roles and Responsibilities  Updating and posting on ADB website the project information for public disclosure, and the safeguards documents in accordance with the ADB’s SPS (2009). Ministry of Finance and/or  Monitoring the project implementation and providing respective coordination and facilitation. EAD  Budgeting, allocating and releasing counterpart funds.  Endorsing to ADB the authorized staff with approved signatures for WAs processing.  Processing and submitting to ADB any request, when required, for reallocating the loan proceeds. ADB = Asian Development Bank, EAD = Economic Affairs Division, NHA = National Highway Authority, SPS = Safeguards Policy Statement. Source: Asian Development Bank.

B. Key Persons Involved in Implementation

Executing Agency National Highway Authority Muhammad Khurram Agha Chairman, National Highway Authority Telephone: +92 51 9260417 Email address: [email protected] Office address: 27 Mauve Area, G-9/1, Islamabad, Pakistan

Borrower and Oversight Saeed Ashraf Siddiqi Agency Joint Secretary, EAD Economic Affairs Division Telephone: +92 51 9201520

ADB Transport and Communications Hideaki Iwasaki Division Director, CWTC Central and West Asia Telephone No.: +63 2 8632 5526 Department Email address: [email protected]

Mission Leader Tranche 1: Seunghyun Kim Senior Transport Specialist Telephone No.: +63 2 8683 5085 Email address: [email protected]

Tranche 2: Rika Idei Transport Specialist Telephone No.: +63 2 8683 1531 Email address: [email protected]

C. Project Organization Structure

9. Figure 1 depicts the proposed organizational structure for implementation of the project. The steering committee constituted for the supervision of the MFF will also act as the steering committee for the project playing the role spelled out in Section III-A.

10. NHA will be the executing agency (EA), which has the mandate for planning, designing and implementing transport projects for national highways as well as policy and regulatory authority over the sector. The Project Implementation Unit (PIU), headed by the General Manager

(CAREC) and suitably qualified staff including project directors, engineers, financial and safeguard specialists, will be responsible for overall implementation of the MFF including supervision of contractors and supervision consultants and day-to-day monitoring of project implementation in accordance with the provisions of the FAM and related legal agreements.

Figure 1: Organization Chart

Steering Committee

EAD NHA ADB

PIU Engineering Safeguards Procurement (civil works and consultant contracts) Accountant Administrative Support

Construction Civil Works Supervision Contractors Consultant

ADB = Asian Development Bank, EAD = Economic Affairs Division, NHA = National Highway Authority, PIU = project implementation unit. Source: Asian Development Bank.

COSTS AND FINANCING

11. The MFF is estimated to cost $925 million. 1

Table 5: MFF Cost Estimates ($ million) Items Tranche 1 Tranche 2 Tranche 3 Tranche 4 Totala A. Base Costb 1. CAREC Corridor 112.3 245.0 345.4 105.5 808.2 Improvement 2. Capacity development 2.0 0.5 2.0 0.5 5.0 Subtotal (A) 114.3 245.5 347.4 106.0 813.2 B. Contingenciesc 14.1 20.0 42.8 11.3 88.2 C. Financing Charges During 4.6 5.3 10.0 3.7 23.6 Implementationd Total (A+B+C) 133.0 270.8 400.2 121.0 925.0 a Includes taxes and duties of $55.8 million to be financed from government cash contribution.

1 A minor scope change in the MFF (rescoping Tranche 3 and adding Tranche 4) was approved by the President on 31 August 2020.

9 b In March 2017 prices for Tranche 1 and in March 2020 prices for Tranche 2, which was reappraised in October 2020, respectively. c Physical contingencies computed at 10% for civil works for Tranche 1 while 5% for Tranche 2. Price contingencies computed at 1.4%–1.8% on foreign exchange costs and 5.0%–8.0% on local currency costs (varied for each tranche, subject to the processing time); includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during construction for ADB loans has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimate.

12. Project roads planned under each tranche and their cost estimates are summarized in Table 6.

Table 6: CAREC Corridors Development Investment Program Estimated Safeguard Tranche Length Cost Category /Year Project Road Type of Works (km) ($ million) IR ENV T1 Petaro–Sehwan Building additional two-lane carriageway 66 50.8 A B (2017) Ratodero–Shikarpur Building additional two-lane carriageway 43 48.5 A B Dara Adamkhel– Rehabilitating existing four-lane 34 13.0 C B Peshawar carriageway Subtotal 143 112.3 T2 Shikarpur–Rajanpur Building additional two-lane carriageway 222 245.0 A B (2021) Subtotal 222 245.0 T3 DG Khan–DI Khan Building additional two-lane carriageway 209 290.0 A B (2022) Rajanpur-D.G. Khan Building additional two-lane carriageway 122 55.4 A B Subtotal 331 345.4 T4 Petaro–Sehwan Rehabilitating existing two-lane 130 68.5 C B (2023) carriageway Ratodero–Shikarpur Rehabilitating existing two-lane 43 37.0 C B carriageway Subtotal 173 105.5 Total 869 808.2 CAREC = Central Asia Regional Economic Cooperation, ENV = environmental, IR = involuntary resettlement, T = tranche. Source: Asian Development Bank estimate.

13. The government has requested an MFF in an amount up to $800 million from ADB's ordinary capital resources to help finance a part of the investment program. The MFF will consist of several tranches, subject to the government's submission of related periodic financing requests, execution of the related loan and project agreements for each tranche, and fulfillment of terms and conditions and undertakings set forth in the framework financing agreement. Tranche 1 of the MFF will have a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered-rate (LIBOR)-based lending facility, 2 a commitment charge of 0.15% per year, (the interest and other charges during construction to be capitalized in the loan,) and such other terms and conditions set forth in the draft loan and project agreements.

14. The government will contribute $125 million to finance expenditures related to land acquisition and resettlement, consultancy services under output 2, taxes and duties, and contingencies. The MFF financing plan is in Table 7.

2 The interest includes a maturity premium of 10 basis points. This is based on the above loan terms and the government’s choice of repayment option and dates.

Table 7: Summary Financing Plan Tranche 1a Tranche 2 Tranche 3 Tranche 4 Total Amount Share (%) Amount Share (%) Amount Share (%) Amount Share (%) Amount Share (%) ($ million) ($ million) ($ million) ($ million) ($ million) ADB 120.0 90.2 235.0 86.8 340.0 85.0 105.0 86.8 800.0 86.0 (OCR regular loan) Government 13.0 9.8 35.8 13.2 60.2 15.0 16.0 13.2 125.0 14.0 Total 133.0 100.0 270.8 100.0 400.2 100.0 121.0 100.0 925.0 100.0 a Includes taxes and duties of $55.8 million to be financed from government cash contribution. ADB = Asian Development Bank; OCR = ordinary capital resources. Source: Asian Development Bank estimate.

15. Tranche 1. Tranche 1 will (i) build an additional two-lane carriageway for 66 km of Petaro– Sehwan road and for 43 km of Ratodero–Shikarpur road; (ii) rehabilitate the existing 34 km four- lane carriageway of Dara Adamkhel–Peshawar road; and (iii) develop NHA’s capacity through due diligence advisory services and assistance with project implementation. Tranche 1 is estimated to cost $133 million.

Table 8: Investment Plan (Tranche 1) ($ million) Source Amount a A. Base Cost 1. Land Acquisition and Resettlement Cost 2.65 2. Civil Works 104.59 3. Construction Supervision Consultant 5.10 4. Capacity Development 1.98 Subtotal (A) 114.32 b B. Contingencies 14.15 c C. Financing Charges During Implementation 4.53 Total (A+B+C) 133.00 Notes: Numbers may not sum precisely because of rounding. a In March 2017 prices. b Physical contingencies computed at 10% for civil works. Price contingencies computed at 1.4%–1.5% on foreign exchange costs and 5.0%–5.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

Table 9: Financing Plan (Tranche 1) Source Amount ($ million) Share of Total (%) Asian Development Bank Ordinary capital resources (loan) 120.00 90.20 Government 13.00 9.80 Total 133.00 100.00 Source: Asian Development Bank estimates.

Table 10: Cost Estimate and Financing Plan (Tranche 1) ADB Government Total Cost Amount % of Cost Amount % of Cost Amount (Taxes and Item ($ million) Category ($ million) Category ($ million) Duties) A. Base Costa 1. Land Acquisition and Resettlement Cost 0.00 0.00 2.65 100.00 2.65 0.00 2. Civil Works 96.22 92.00 8.37 8.00 104.59 8.37 3. Construction Supervision Consultant 5.10 100.00 0.00 0.00 5.10 0.00 4. Capacity Developmentb 0.00 0.00 1.98 100.00 1.98 0.00 a. Due diligence advisory services 0.00 0.00 1.98 100.00 1.98 0.00 Total Base Cost (A) 101.32 88.63 13.00 11.37 114.32 8.37 b B. Contingencies 1. Physical 9.63 100.00 0.00 0.00 9.63 0.00 2. Price 4.52 100.00 0.00 0.00 4.52 0.00 Subtotal (B) 14.15 100.00 0.00 0.00 14.15 0.00 c C. Financial Charges During Implementation 1. Interest during implementation 4.13 100.00 0.00 0.00 4.13 0.00 2. Commitment charges 0.40 100.00 0.00 0.00 0.40 0.00 Subtotal (C) 4.53 100.00 0.00 0.00 4.53 0.00 Total Project Cost (A+B+C) 120.00 90.20 13.00 9.80 133.00 8.37 Notes: Numbers may not sum precisely because of rounding. a In March 2017 prices. b Physical contingencies computed at 10% for civil works. Price contingencies computed at 1.4%–1.5% on foreign exchange costs and 5.0%–5.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

16. The ADB loan will have a 25-year term, including a grace period of 5 years, straight-line repayment method, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year (the interest and other charges during construction to be capitalized in the loan), and such other terms and conditions set forth in the draft loan agreement. Based on the custom-tailored method, the average loan maturity is 15.97 years, and the maturity premium payable to ADB is 0.1% per annum.

17. Tranche 2. Project 2 will (i) build an additional two-lane carriageway for 222 km of Shikarpur–Rajanpur section; and (iii) develop NHA’s capacity through due diligence advisory services and assistance with project implementation. Project 2 is estimated to cost $270.8 million.

Table 11: Investment Plan (Tranche 2) ($ million) Source Amount a A. Base Cost 1. Land Acquisition and Resettlement Cost 12.65 2. Civil Works 226.81 3. Construction Supervision Consultant 5.54 4. Capacity Development 0.50 Subtotal (A) 245.50 b B. Contingencies 19.96 c C. Financing Charges During Implementation 5.37 Total (A+B+C) 270.83 a Includes taxes and duties of $22.7 million. The government will finance taxes and duties of $22.7 million as exemptions and to be financed through cash contribution. b In prices as of March 2020, which was reappraised in October 2020. c Physical contingencies computed at 5% for civil works. Price contingencies computed at 1.7-1.8% on foreign exchange costs and 6.5-7.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during construction for the OCR loan(s) has been computed at the 5-year United States dollar swap rate plus an effective contractual actual spread of 0.5% and maturity premium of 0.2%. Commitment charges for the OCR loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

Table 12: Financing Plan (Tranche 2) Source Amount ($ million) Share of Total (%) Asian Development Bank Ordinary capital resources (loan) 235.00 86.77 Governmenta 35.83 13.23 Total 270.83 100.00 a The government will finance expenditures related to land acquisition and resettlement, consultancy services under output 2, taxes and duties, and contingencies. Source: Asian Development Bank estimates.

Table 13: Cost Estimate and Financing Plan (Tranche 2) ADB Government Total Cost Amount % of Cost Amount % of Cost Amount Taxes and Item ($ million) Category ($ million) Category ($ million) Duties A. Base Costa 1. Land acquisition and resettlement cost 0.00 0.00 12.65 100.00 12.65 0.00 2. Civil works 204.13 90.00 22.68 10.00 226.81 22.68 3. Construction supervision consultant 5.54 100.00 0.00 0.00 5.54 0.00 4. Capacity developmentb 0.00 0.00 0.50 100.00 0.50 0.00 a. Implementation of NHA Training Program 0.00 0.00 0.50 100.00 0.50 0.00 Total Base Cost (A) 209.67 85.41 35.83 14.59 245.50 22.68 b B. Contingencies 1. Physical 10.54 100.00 0.00 0.00 10.54 0.00 2. Price 9.42 100.00 0.00 0.00 9.42 0.00 Subtotal (B) 19.96 100.00 0.00 0.00 19.96 0.00 c C. Financial Charges During Implementation 1. Interest during implementation 4.57 100.00 0.00 0.00 4.57 0.00 2. Commitment charges 0.80 100.00 0.00 0.00 0.80 0.00 Subtotal (C) 5.37 100.00 0.00 0.00 5.37 0.00 Total Project Cost (A+B+C) 235.00 86.77 35.83 13.23 270.83 22.68 ADB = Asian Development Bank, NHA = National Highway Authority. Notes: Numbers may not sum precisely because of rounding. a In prices of March 2020, which was reappraised in October 2020. b Physical contingencies computed at 5% for civil works. Price contingencies computed at 1.7%–1.8% on foreign exchange costs and 6.5%–7.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

13 c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year United States dollar swap rate plus an effective contractual actual spread of 0.5% and maturity premium of 0.2%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates

A. Cost Estimates Preparation and Revisions

18. The cost estimates were updated in March 2020 by the project design review consultant based on market prices for consulting services and civil works. The estimates were reappraised in October 2020, when the Planning Commission Pro-forma No. 1 was approved.

B. Key Assumptions

19. The following assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: PKR160.757= $1.00 (as of 20 July 2021). (ii) Price contingencies base on expected cumulative inflation over the implementation period are as follows:

Table 14: Escalation Rates for Price Contingency Calculation Item 2021 2022 2023 2024 2025 Average Foreign rate of price 1.6% 1.7% 1.7% 1.8% 1.8% 1.52% inflation Domestic rate of 8.7% 7.5% 7.0% 6.5% 6.5% 7.28% price inflation Sources: Asian Development Bank estimates.

C. Detailed Cost Estimates by Expenditure Category

Table 15A: Detailed Cost Estimates by Expenditure Category (Tranche 1) ($ million) Foreign Local % of Total Item Exchange Currency Total Base Cost A. Base Costa 1. Land acquisition and resettlement 0.00 2.65 2.65 2.32 2. Civil works 19.24 76.98 96.22 84.17 3. Construction supervision consultant 2.40 2.70 5.10 4.46 4. Capacity development 0.00 1.98 1.98 1.73 a. Due diligence advisory services 0.00 1.98 1.98 1.73 5. Taxes and duties 0.00 8.37 8.37 7.32 Total Base Cost (A) 21.64 92.68 114.32 100.00 B. Contingenciesb 1. Physical 1.93 7.70 9.63 8.42 2. Price 0.29 4.23 4.52 3.95 Subtotal (B) 2.22 11.93 14.15 12.37 C. Financial Charges During Implementationc 1. Interest during implementation 4.13 0.00 4.13 3.61 2. Commitment charges 0.40 0.00 0.40 0.35 Subtotal (C) 4.53 0.00 4.53 3.96 Total Project Cost (A+B+C) 28.39 104.61 133.00 116.33 Notes: Numbers may not sum precisely because of rounding. a In March 2017 prices. b Physical contingencies computed at 10% for civil works. Price contingencies computed at 1.7%–1.8% on foreign exchange costs and 7.0%–8.0% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

14 c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

Table 15B: Detailed Cost Estimates by Expenditure Category (Tranche 2) ($ million) Foreign Local % of Total Item Exchange Currency Total Base Cost A. Base Costa 1. Land acquisition and resettlement 0.00 12.65 12.65 5.15 2. Civil works 40.83 163.30 204.13 83.15 3. Construction supervision consultant 1.50 4.04 5.54 2.26 4. Capacity development 0.00 0.50 0.50 0.20 a. Implementation of NHA Training Program 0.00 0.50 0.50 0.20 5. Taxes and duties 0.00 22.68 22.68 9.24 Total Base Cost (A) 42.33 203.17 245.50 100.00 B. Contingenciesb 1. Physical 2.01 8.05 10.06 4.29 2. Price 3.40 6.50 9.90 3.84 Subtotal (B) 5.41 14.55 19.96 8.13 C. Financial Charges During Implementationc 1. Interest during implementation 4.57 0.00 4.57 1.86 2. Commitment charges 0.80 0.00 0.80 0.33 Subtotal (C) 5.37 0.00 5.37 2.19 Total Project Cost (A+B+C) 53.11 217.72 270.83 110.32 Notes: Numbers may not sum precisely because of rounding. a In prices of March 2020, which was reappraised in October 2020. b Physical contingencies computed at 5% for civil works. Price contingencies computed at 1.7%–1.8% on foreign exchange costs and 6.5%–7.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year United States dollar swap rate plus an effective contractual actual spread of 0.5% and maturity premium of 0.2%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

D. Allocation and Withdrawal of Loan Proceeds

Table 16A. Allocation and Withdrawal of Loan Proceeds (Tranche 1) Total Amount Allocated for Basis for No ADB Financing ($) Withdrawal from . Item Category the Loan Account 92% of total 1 Civil works 110,000,000 expenditure claimed 100% of total Consulting services and capacity 2 4,000,000 expenditure development claimed* 100% of total 3 Interest and commitment charges 4,500,000 amount due 4 Unallocated 1,500,000 Total 120,000,000 *Exclusive of taxes and duties imposed within the territory of the Borrower. Note: Numbers may not sum precisely because of rounding.

Table 16B: Allocation and Withdrawal of Loan Proceeds (Tranche 2) Total Amount Allocated for Basis for No Item ADB Financing ($) Withdrawal from . Category the Loan Account 90% of total 1 Works 204,130,000 expenditure claimed 100% of total 2 Consulting Services 5,540,000 expenditure claimed* 100% of total 3 Interest and Commitment Charges 5,370,000 amount due 4 Unallocated 19,960,000 TOTAL 235,000,000 * Exclusive of taxes and duties imposed within the territory of the Borrower. Source: Asian Development Bank estimates.

20. Except as ADB may otherwise agree, the items of the civil works and consulting services categories shall be financed out of the proceeds of the loan on the basis of the percentages set forth in the table of allocation and withdrawal of loan proceeds. Except as ADB may otherwise agree, the loan proceeds for financing civil works, consulting services and other items shall be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017 as amended from time to time).

E. Detailed Cost Estimates by Financier

Table 17A: Detailed Cost Estimates by Financier (Tranche 1) ($ million) ADB Government Total Cost % of Cost % of Cost Taxes and Item Amount Category Amount Category Amount Duties A. Base Costa 1. Land acquisition and resettlement cost 0.00 0.00 2.65 100.00 2.65 (0.00) 2. Civil works 96.22 92.00 8.37 8.00 104.59 (8.37) 3. Construction supervision consultant 5.10 100.00 0.00 0.00 5.10 (0.00) 4. Capacity developmentb 0.00 0.00 1.98 100.00 1.98 (0.00) a. Due diligence advisory services 0.00 0.00 1.98 1.98 1.98 (0.00) Total Base Cost (A) 101.32 88.63 13.00 11.37 114.32 (8.37) b B. Contingencies 1. Physical 9.63 100.00 0.00 0.00 9.63 (0.00) 2. Price 4.52 100.00 0.00 0.00 4.52 (0.00) Subtotal (B) 14.15 100.00 0.00 0.00 14.15 (0.00) c C. Financial Charges During Implementation 1. Interest during implementation 4.13 100.00 0.00 0.00 4.13 (0.00) 2. Commitment charges 0.40 100.00 0.00 0.00 0.40 (0.00) Subtotal (C) 4.53 100.00 0.00 0.00 4.53 (0.00) Total Project Cost (A+B+C) 120.00 90.20 13.00 9.80 133.0 (8.37) Notes: Numbers may not sum precisely because of rounding. a In March 2017 prices. b Physical contingencies computed at 10% for civil works. Price contingencies computed at 1.4%–1.5% on foreign exchange costs and 5.0%–5.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

Table 17B: Cost Estimate and Financing Plan (Tranche 2) ($ million) ADB Government Total Cost Amount % of Cost Amount % of Cost Amount Taxes and Item ($ million) Category ($ million) Category ($ million) Duties A. Base Costa 1. Land acquisition and resettlement cost 0.00 0.00 12.65 100.00 12.65 (0.00) 2. Civil works 204.13 90.00 22.68 10.00 226.81 (22.68) 3. Construction supervision consultant 5.54 100.00 0.00 0.00 5.54 (0.00) 4. Capacity developmentb 0.00 0.00 0.50 100.00 0.50 (0.00) a. Implementation of NHA Training Program 0.00 0.00 0.50 100.00 0.50 (0.00) Total Base Cost (A) 209.67 85.41 35.83 14.60 245.50 (22.68) b B. Contingencies 1. Physical 10.06 100.00 0.00 0.00 10.06 (0.00) 2. Price 9.90 100.00 0.00 0.00 9.90 (0.00) Subtotal (B) 19.96 100.00 0.00 0.00 19.96 (0.00) c C. Financial Charges During Implementation 1. Interest during implementation 4.57 100.00 0.00 0.00 4.57 (0.00) 2. Commitment charges 0.80 100.00 0.00 0.00 0.80 (0.00) Subtotal (C) 5.37 100.00 0.00 0.00 5.37 (0.00) Total Project Cost (A+B+C) 235.00 86.77 35.83 13.23 270.83 (22.68) Notes: Numbers may not sum precisely because of rounding. a In prices of March 202, which was reappraised in October 2020. b Physical contingencies computed at 5% for civil works. Price contingencies computed at 1.7%–1.8% on foreign exchange costs and 6.5%–7.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year United States dollar swap rate plus an effective contractual actual spread of 0.5% and maturity premium of 0.2%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates

F. Detailed Cost Estimates by Outputs and/or Components

Table 18A: Detailed Cost Estimates by Outputs and/or Components (Tranche 1) ($ million) Petaro–Sehwan Ratodero–Shikarpur Dara Adam Khel– Capacity Peshawar Development

Total % of Cost % of Cost % of Cost % of Cost Item Cost Amount Category Amount Category Amount Category Amount Category A. Base Costa 1. Resettlement dost 2.65 0.64 24.15 2.01 75.85 0.00 0.00 0.00 0.00 2. Civil works 104.59 50.15 47.99 41.58 39.71 12.86 12.30 0.00 0.00 Construction supervision 3. 5.10 2.44 47.99 2.03 39.71 0.63 12.30 0.00 0.00 consultant 4. Capacity development 1.98 0.00 0.00 0.00 0.00 0.00 0.00 1.98 100.00 Due diligence a. 1.98 0.00 0.00 0.00 0.00 0.00 0.00 1.98 100.00 advisory services Total Base Cost (A) 114.32 53.23 46.57 45.62 39.90 13.49 11.80 1.98 1.73 B. Contingenciesb 1. Physical 9.63 4.62 47.99 3.83 39.71 1.18 12.30 0.00 0.00 2. Price 4.52 2.17 47.99 1.79 39.71 0.56 12.30 0.00 0.00 Subtotal (B) 14.15 6.79 47.99 5.62 39.71 1.74 12.30 0.00 0.00 C. Financial Charges During Implementationc Interest during 1. 4.13 1.92 46.49 1.65 39.95 0.49 11.86 0.07 1.70 implementation 2. Commitment charges 0.40 0.19 46.49 0.16 39.95 0.04 11.86 0.01 1.70 Subtotal (C) 4.53 2.11 46.49 1.81 39.95 0.53 11.86 0.08 1.70 Total Project Cost (A+B+C) 133.00 62.13 46.71 53.05 39.89 15.76 11.85 2.06 1.55

Notes: Numbers may not sum precisely because of rounding. a In March 2017 prices. b Physical contingencies computed at 10% for civil works. Price contingencies computed at 1.4%–1.5% on foreign exchange costs and 5.0%–5.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

Table 18B: Detailed Cost Estimates by Outputs and/or Components (Tranche 2) ($ million) Total Shikarpur-Kandhkot Kandhkot-Kashmore Kashmore-Rajhan Rajhan-Rajanpur Emergency Response Capacity Cost Center and Motor Development Police % of Cost % of Cost % of Cost % of Cost % of Cost % of Cost Amount Amount Amount Amount Amount Amount Category Category Category Category Category Category A. Base Costa 1 Land Acquisition and 12.65 1.73 13.68 7.01 55.42 1.96 15.49 1.95 15.41 0.00 0.00 0.00 0.00 Resettlement Cost 2 Civil Works 226.81 56.55 24.93 76.38 33.68 42.44 18.71 47.87 21.10 3.57 1.58 0.00 0.00 3 Construction Supervision 5.54 1.38 24.93 1.86 33.68 1.04 18.71 1.17 21.10 0.09 1.58 0.00 0.00 Consultant 4 Capacity Development 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.00 a. Implementation of NHA 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.00 Training Program

Total Base Cost (A) 245.50 59.66 24.30 85.25 34.73 45.44 18.51 50.99 20.77 3.66 1.49 0.50 0.20 B. Contingenciesb 1 Physical 10.06 2.51 24.93 3.39 33.68 1.88 18.71 2.12 21.10 0.16 1.58 0.00 0.00 2 Price 9.90 2.47 24.93 3.33 33.68 1.85 18.71 2.09 21.10 0.16 1.58 0.00 0.00 Subtotal (B) 19.96 4.98 24.93 6.72 33.68 3.73 18.71 4.21 21.10 0.32 1.58 0.00 0.00 C. Financial Charges During Implementationc 1 Interest during 4.57 1.14 24.93 1.54 33.68 0.85 18.71 0.97 21.10 0.07 1.58 0.00 0.00 implementation 2 Commitment charges 0.80 0.20 24.93 0.27 33.68 0.15 18.71 0.17 21.10 0.01 1.58 0.00 0.00 Subtotal (C) 5.37 1.34 24.93 1.81 33.68 1.00 18.71 1.14 21.10 0.08 1.58 0.00 0.00 Total Project Cost (A+B+C) 270.83 65.98 24.36 93.78 34.63 50.17 18.53 56.34 20.80 4.06 1.50 0.50 0.18 Notes: Numbers may not sum precisely because of rounding. a In prices of March 2020, which was reappraised in October 2020. b Physical contingencies computed at 5% for civil works. Price contingencies computed at 1.7%–1.8% on foreign exchange costs and 6.5%–7.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year United States dollar swap rate plus an effective contractual actual spread of 0.5% and maturity premium of 0.2%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates

G. Detailed Cost Estimates by Year

Table 19A: Detailed Cost Estimates by Year (Tranche 1) ($ million) Item Total Cost 2018 2019 2020 2021 2022 A. Base Costa 1. Land acquisition and resettlement cost 2.65 0.00 0.80 1.59 0.26 0.00 2. Civil works 104.59 0.00 8.04 12.85 39.66 44.04 3. Construction supervision consultant 5.10 0.00 0.51 0.68 1.85 2.06 4. Capacity developmentb 1.98 0.00 0.58 0.80 0.50 0.10 a. Due diligence advisory services 1.98 0.00 0.58 0.80 0.50 0.10 Total Base Cost (A) 114.32 0.00 9.93 15.92 42.27 46.20 b B. Contingencies 1. Physical 9.63 0.00 0.74 1.18 3.65 4.06 2. Price 4.52 0.00 0.35 0.56 1.71 1.90 Subtotal (B) 14.15 0.0 1.09 1.74 5.36 5.96 C. Financial Charges During Implementationc 1. Interest during implementation 4.13 0.10 0.30 0.44 1.90 1.39 2. Commitment charges 0.40 0.00 0.10 0.12 0.15 0.03 Subtotal (C) 4.53 0.10 0.40 0.56 2.05 1.42 Total Project Cost (A+B+C) 133.00 0.10 11.42 18.22 49.68 53.58 % of Total Project Cost 100.00 0.08 8.59 13.70 37.36 40.27 Notes: Numbers may not sum precisely because of rounding. a In March 2017 prices. b Physical contingencies computed at 10% for civil works. Price contingencies computed at 1.4%–1.5% on foreign exchange costs and 5.0%-5.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

Table 19B: Detailed Cost Estimates by Year (Tranche 2) ($ million) Item Total Cost 2021 2022 2023 2024 2025 A. Base Costa 1. Land acquisition and resettlement cost 12.65 12.65 0.00 0.00 0.00 0.00 2. Civil works 226.81 30.78 67.11 69.34 45.54 14.04 3. Construction supervision consultant 5.54 0.55 1.66 1.66 1.11 0.56 4. Capacity developmentb 0.50 0.00 0.10 0.20 0.20 0.00 a. Implementation of NHA Training Program 0.50 0.00 0.10 0.20 0.20 0.00

Total Base Cost (A) 245.50 43.98 68.87 71.20 46.85 14.60 B. Contingenciesb 1. Physical 10.06 0.00 3.02 4.03 2.01 1.00 2. Price 9.90 0.00 1.57 3.21 3.18 1.94 Subtotal (B) 19.96 0.00 4.59 7.24 5.19 2.94 C. Financial Charges During Implementationc 1. Interest during implementation 4.57 0.19 0.61 1.04 1.32 1.41 2. Commitment charges 0.80 0.33 0.25 0.15 0.06 0.01

Subtotal (C) 5.37 0.52 0.86 1.19 1.38 1.42 Total Project Cost (A+B+C) 270.83 44.50 74.32 79.63 53.42 18.96 % of Total Project Cost 100.00 16.43 27.44 29.40 19.73 7.00 Notes: Numbers may not sum precisely because of rounding. a In prices of March 2020, which was reappraised in October 2020. b Physical contingencies computed at 5 for civil works. Price contingencies computed at 1.7%–1.8% on foreign exchange costs and 6.5%–7.5% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year United States dollar swap rate plus an effective contractual actual spread of 0.5% and maturity premium of 0.2%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

H. Contract and Disbursement S-Curve

Figure 2A: Contract Award and Disbursement (Tranche 1)

Q = quarter. Source: Asian Development Bank estimates.

Contract Awards Disbursements Year Q1 Q2 Q3 Q4 Total Year Q1 Q2 Q3 Q4 Total 2018 0.00 0.00 0.00 54.70 54.70 2018 0.00 0.00 0.00 0.00 0.00 2019 0.00 0.00 0.00 0.00 0.00 2019 2.38 2.01 0.00 3.52 7.91 2020 0.00 0.00 0.00 28.34 28.34 2020 4.63 2.22 3.02 2.63 12.50 2021 0.00 0.00 0.00 32.43 32.43 2021 2.74 2.03 5.00 37.42 47.19 2022 0.00 0.00 0.00 0.00 0.00 2022 7.00 4.50 3.94 36.96 52.40 Total 115.47 Total 120.00

Figure 2B: Contract Award and Disbursement (Tranche 2)

Q = quarter. Source: Asian Development Bank estimates.

Contract Awards Disbursements Year Q1 Q2 Q3 Q4 Total Year Q1 Q2 Q3 Q4 Total 2021 0.00 0.00 0.00 216.50 216.50 2021 0.00 0.00 0.00 31.69 31.69 2022 0.00 3.57 0.00 0.00 3.57 2022 0.40 18.40 18.40 32.36 69.56 2023 0.00 0.00 0.00 0.00 0.00 2023 8.40 21.40 21.40 20.61 71.81 2024 0.00 0.00 0.00 0.00 0.00 2024 20.27 20.28 0.28 6.35 47.18 2025 0.00 0.00 10.36 0.00 10.36 2025 0.28 0.28 0.00 14.20 14.76 Total 230.43 Total 235.00 Source: Asian Development Bank estimates.

I. Fund Flow Diagram

Figure 3: Fund Flow Diagram

FINANCIAL MANAGEMENT

A. Financial Management Assessment

21. The financial management assessment (FMA) was conducted in May 2017 and updated in March 2020 in accordance with ADB’s current technical guidance: (i) Financial Due Diligence: A Methodology Note (ADB, January 2009) 3 (ii) ADB Financial Management Technical Guidance Note: Financial Management Assessment (ADB, May 2015) 4

22. The FMA considered the financial management capacity of the executing agency, National Highway Authority (NHA), including the funds-flow arrangements, staffing, accounting and financial reporting systems, internal and external auditing arrangements, and financial information

3 Available at https://www.adb.org/documents/financial-due-diligence-methodology-note 4 Available at https://www.adb.org/sites/default/files/page/82468/financial-management-assessment.pdf

24 systems. The FMA update was carried out based on the interview of the relevant NHA staff, and review of the existing FMA, Financial Manual, Internal Audit Manual, financial statements, audit reports and other related materials. The status of the financial management action plan agreed for tranche 1 was also reviewed and updated.

23. The overall Inherent Risk was assessed as Substantial, mainly reflecting the reduced budget credibility and ineffective internal audit environment in country-specific risks. The overall control risk is assessed as moderate mainly because of the NHA’s experience and knowledge acquired for over 20 years in the course of projects implementation funded by various donors, despite outdated financial manual, ineffective internal audit function and weaknesses in the internal control. Given the government priority in transport sector and the strengths in financial management of NHA, the significant inherent risk is not anticipated to cause high impacts on the project financial management. Hence, the combined pre-mitigation project financial management risk is assessed as moderate.

24. The updated FMA found that NHA has established the financial management capacity for over 20 years by capitalizing on the implementation of projects funded by international financial institutions. The arrangement for project funds flow will remain the same as on-going ADB financed projects, which have worked well up to now. NHA has been receiving the release of counterpart funds in time and management letters do not indicate deficiencies in this regard. The accounting and financial management staff are dedicated and qualified with extensive experience and knowledge of ADB’s procedures, ADB’s Disbursement and financial management requirements. The accounting policy is based on Cash Basis International Public Sector Accounting Standard (IPSAS) at project level and Accrual Basis International Financial Reporting Standards (IFRS) at NHA level. The projects financial statements (APFS) are audited by Auditor General of Pakistan (Supreme Audit Institute: SAI) in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). Audited APFSs were submitted without delays for the last 3 years and no qualified opinions were issued in the audit reports. NHA’s annual financial statements (AEFS) are audited by a well reputed commercial auditing firm in accordance with International Standards on Auditing (ISAs), which have carried unqualified opinion for the last 3 years. The capacity of NHA in financial management is adequate to use SOE and advance fund procedure.

25. The assessment also identified financial management risks that need to be mitigated. Weak public financial management at national level may hamper smooth funding for the projects in future. The financial manual doesn’t cover the procedures for aided projects in detail and has not been adequately updated since its approval in 1999, which may lead to incompleteness and inconsistency in accounting of transactions. Weak internal audit function may result in ineffective internal controls.

26. NHA has agreed to implement an updated financial management action plan in Table 20 as part of priority measures to address the identified risks. Financial management risks and risk- mitigation measures should be reviewed and updated throughout the project life cycle.

Table 20: Updated Financial Management Action Plan Key Risk Mitigating Measure Responsibility Indicative Timeline Reduced availability of The government will ensure the EAD/MOF During project the counterpart funds counterpart funds to be implementation included in the annual budget and released in timely manner. Outdated financial NHA will update the financial NHA Within 1 year after manual manual to reflect the project loan effectiveness specific fund flows, disbursement arrangements, and other relevant evolutions for the ongoing and upcoming ADB projects. Ineffective internal audit NHA will implement the internal NHA Within 1 year after function audit manual and internal audit loan effectiveness plan prepared by “Deloitte Pakistan” as applicable.

NHA will include the projects of Annually during CAREC Corridor Development project Program in the annual internal implementation audit plan and submit the internal audit reports to ADB within 1 months after the approval of relevant authority. Weakness in internal NHA will submit the corrective NHA Annually during control action plans to address audit project observations reported in the implementation management letters for all the ongoing ADB projects. Delay in strengthening NHA will prepare a time-bound MOF and NHA, Six months after NHA’s financial action plan for its financial with monitoring by loan effectiveness statements restructuring within 6 months ADB declared. after loan effectiveness and submit to ADB the implementation status reports semi-annually during implementation of the plan. Current pending Pending litigations including MOF and NHA During project litigation defaulted repayment of long- implementation term loans was recorded in the audited entity financial statement for FY 2020, which requires ADB’s close monitoring. ADB=Asian Development Bank, CAREC = Central Asia Regional Economic Cooperation, EAD = Economic Affairs Division; FY = financial year; MOF = Ministry of Finance, NHA=National Highway Authority. Source: Asian Development Bank estimates.

B. Disbursement

1. Disbursement Arrangement for ADB Funds

27. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time), and detailed arrangements agreed between the

26 government and ADB. Online training for project staff on disbursement policies and procedures is available at http://wpqr4.adb.org/disbursement_elearning. Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control.

28. NHA will be responsible for (i) preparing disbursement projections, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting supporting documents, and (iv) preparing and sending withdrawal applications to ADB.

29. Statement of expenditure procedure. The SOE procedure may be used for reimbursement of eligible expenditures. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB's disbursement and review missions, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.

30. For direct payments, the contractors and consultants will submit their invoices or interim payment certificates as appropriate to NHA who will process them and send with the required withdrawal applications to ADB through the borrower.

31. Before the submission of the first withdrawal application, the government shall submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is set in accordance with the Loan Disbursement Handbook (2017, as amended from time to time). Individual payments below this amount should be paid by NHA and subsequently claimed to ADB through reimbursement, unless otherwise accepted by ADB. The borrower should ensure sufficient category and contract balances before requesting disbursements.

2. Disbursement Arrangement for Counterpart Funds

32. All disbursements under government financing will be carried out in accordance with the regulations of the Government of Pakistan and accounting principles acceptable to ADB. NHA being executing/implementing agency is responsible for preparing disbursement projections and requesting budgetary allocations for counterpart funds. The government will exempt local taxes and duties.

C. Accounting

33. The accounting policy is based on Cash Basis International Public Sector Accounting Standard (IPSAS) at project level and Accrual Basis International Financial Reporting Standards (IFRS) at NHA level. NHA maintains, or causes to be maintained, separate books and records by funding source for all expenditures incurred on the project. NHA prepares project financial statements in accordance with the International Standards of Supreme Audit Institutions (ISSAIs), which will be audited by the Auditor General of Pakistan (Supreme Audit Institute: SAI).

D. Auditing and Public Disclosure

34. NHA causes the detailed project financial statements to be audited in accordance with the International Standards of Supreme Audit Institutions (ISSAI) and with the Government's audit regulations, by Supreme Audit Institution and approved by the Auditor General of Pakistan, as acceptable to ADB. The audited project financial statements, together with the auditors’ report, are presented by NHA in the English language to ADB within six months from the end of the fiscal

27 year. Given that project has retroactive financing, the audited project financial statements will include the audit of the retroactive financing.

35. NHA also causes the entity-level financial statements to be audited in accordance with International Standards on Auditing (ISA) and with the Government's audit regulations, by an independent auditor acceptable to ADB. The audited entity-level financial statements, together with the auditors’ report, submitted in the English language to ADB within one month after their approval by the competent authority but not later than 12 months from the end of the fiscal year.

36. The annual audit report for the project accounts will include an audit management letter and audit opinions which cover (i) whether the project financial statements present a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether loan proceeds were used only for the purposes of the project ; (iii) whether the borrower was in compliance with the financial covenants contained in the legal agreements (where applicable).

37. Compliance with financial reporting and auditing requirements is monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

38. The Government and NHA have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements. 5 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

39. Public disclosure of the project financial statements, including the audit report on the project financial statements, is guided by Access to Information Policy 6.

40. After the review, ADB will disclose the audited project financial statements for the project and the opinion of the auditors on the financial statements no later than 14 days of the date of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditors’ opinions, and audited entity financial statements are not disclosed.

5 ADB approach and procedures regarding delayed submission of audited project financial statements: • When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (i) the audit documents are overdue; and (ii) if they are not received within the next six months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed. • When audited project financial statements have not been received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the executing agency of ADB’s actions; and (ii) advise that the loan may be suspended if the audit documents are not received within the next six months. • When audited project financial statements have not been received within 12 months after the due date, ADB may suspend the loan. 6 Access to Information Policy: https://www.adb.org/documents/access-information-policy

PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

41. Advance action to initiate the procurement and/or recruitment of consultants before signing the related loan agreement should be undertaken in conformity with procurement procedures, including advertising. For Tranche 1, procurement and consultant recruitment were held in accordance with ADB’s Procurement Guidelines (2015, as amended from time to time) and the recruitment procedures, including advertising, in accordance with ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).

42. For Tranche 2 and subsequent tranche under the MFF, procurement and consultant recruitment will be undertaken in conformity with the new procurement framework as set out in ADB’s Procurement Policy for the procurement of goods, works, consulting services and non- consulting services (2017) and the Procurement Regulations for ADB Borrowers (2017). 7 ADB should review the borrower’s process; and the borrower undertakes such advance contracting at its own risk; and any concurrence by ADB with the procedures, documentation, or proposal for award does not commit ADB to finance the project in question.

43. Retroactive financing is specifically agreed by ADB and the borrower in the loan agreement and only pursuant to the terms of the relevant agreement. The adequacy of the borrower’s capacity to carry out related contracting and/or disbursement was assessed. The maximum amount of eligible expenditures for retroactive financing of goods, civil works and consulting services will be up to 20% of the total ADB loan, incurred before loan effectiveness, but not earlier than 12 months before the signing of the loan agreements. The submission of the audited project financial statements and the audit report will be from the date when expenditures that were approved for retroactive financing were incurred.

B. Procurement of Goods, Works, and Consulting Services

44. Tranche 1. Procurement of goods, civil works and related services financed under the project will be done in accordance with ADB’s Guidelines for Procurement (2015, as amended from time to time). Consulting services will be required for reviewing designs and supervising construction. Consultants will be recruited in accordance with ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). 8

45. Tranche 1’s updated procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages is in Appendix 1. International competitive bidding procedures will be used for civil works contracts estimated to cost $15 million or more. There are three civil works packages expected under Tranche 1. There is no procurement of goods.

46. An estimated 413 person-months of consulting services (67 international, and 346 national) are required for construction supervision. The supervision consultant will also help NHA in review of detailed design and carry out contract administration. The consulting firm will be engaged using the quality- and cost-based selection method with a standard quality–cost ratio of 90:10. The terms of reference for the consulting services are detailed in Appendix 2.

7 Available at: http://www.adb.org/documents/procurement-regulations-adb-borrowers. 8 Checklists for actions required to recruit consultants under different method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

47. Tranche 2. Procurement of goods, civil works and related services financed under the project will be undertaken in conformity with the new procurement framework as set out in ADB’s Procurement Policy for the procurement of goods, works, consulting services and non-consulting services (2017) and the Procurement Regulations for ADB Borrowers (2017).

48. Tranche 2’s procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages is in Appendix 1. With respect to the works, the procurement plan was designed on the assumption that greatest value for money will be achieved by dividing the works in one package comprising of four lots of US$ 42.4 to 76.4 million cost estimate each (US$ 223.2 million estimate value for the whole package). This approach is considered to offer a fair balance between the need to attract the most bidders and the cost of bidding and contract management processes.

49. An estimated 412.5 person-months of consulting services (67 international, and 345.5 national) are required for construction supervision. The supervision consultant will help NHA in review of detailed design and carry out contract administration. The consulting firm will be engaged using the quality- and cost-based selection method with a standard quality–cost ratio of 90:10. The terms of reference for the consulting services are detailed in Appendix 2. Considering Tranche 3’s approval is expected in 2022, the contract of the construction supervision consultant for Tranche 2 will cover the design review and supervision consultancy services for Tranche 3.

SAFEGUARDS

A. Environment

50. NHA will ensure (a) that the design, construction, operation and maintenance of the projects' facilities are carried out in accordance with ADB’s Safeguard Policy Statement (SPS) (2009) 9 and the national and relevant provincial environmental laws and regulations; and (b) potential adverse environmental impacts arising from the subprojects under tranches are avoided, minimized, mitigated or compensated by implementing all mitigation and monitoring measures as presented in the environmental management program (EMP).

51. NHA will ensure that: (a) For projects that are to be selected under future tranches, the selection criteria given in Section V ‘Environmental Assessment for Subprojects and/or Components’ of the EARF are to be followed; (b) In accordance with the ADB’s Safeguard Policy Statement (2009) environmental assessment reports and environmental management plans will be prepared and submitted to ADB during processing of the subsequent project’s tranches; (c) The site specific EMPs will be submitted by the Contractor to the Construction Supervision Consultant (CSC) and NHA for endorsement and approval respectively, at least 10 days before taking possession of any work site. No access to the site will be allowed until the site specific EMPs will be approved by the NHA; (d) The contractors will develop and implement site-specific health and safety management plans that shall include health-related measures to prevent and stem the spread of COVID-19. (e) Sufficient resources are made available to implement, monitor, and record the implementation of the EMPs;

9 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf.

(f) Semi-annual environmental monitoring reports are prepared and submitted to ADB for disclosure on the ADB’s website within one (1) month of the end of each period covered until the project completion report is issued; (g) The environmental monitoring reports include, inter alia, a review of progress made on the implementation of the EMPs, problems encountered, and remedial measures taken; (h) The detailed engineering design and the works contracts under the Project will incorporate applicable environmental measures identified in the initial environmental examination (IEE) and the EMPs; (i) In case of a change in design, the IEE/EIA and EMP must be reviewed to ensure that additional impacts (if any) are incorporated and addressed; (j) Contractors are supervised by the CSC to ensure compliance with the requirements of the IEEs and the EMPs; (k) In event of unanticipated environmental impacts occurring, ADB must be informed immediately, a corrective action plan (CAP) is prepared, agreed with ADB and implemented; and (l) A grievance redress mechanism (GRM) to address environmental related complaints is established and fully functional. The GRM is described in the environment assessment reports of all projects.

52. The Construction Supervision Consultant (CSC), through its Environmental Specialist(s), will ensure that: (a) Review and endorse a site-specific Environmental Management Plan submitted by the Contractor, (b) Monitor implementation of the site specific environmental monitoring plan by the Contractor and assess its environmental performance, (c) Based on monthly environmental monitoring reports submitted by the Contractor and own compliance audits, the CSC prepares and submits to NHA semi-annual environmental monitoring reports within one (1) month of the end of each period covered until the project completion report is issued, (d) In case of a change in design, the CSC reviews IEE/EIA and EMP to ensure that additional impacts (if any) are assessed and mitigation measures for them. (e) In case of unanticipated environmental impacts, CSC assists NHA to prepare a corrective action plan (CAP) and monitor its implementation by the Contractor.

53. The Contractor, through its Environmental Specialist(s), will ensure that: (a) preparation, at the pre-construction stage, of the site specific EMP based on the IEE and generic EMP, and submission it for approval to the construction supervision consultant (CSC) of each tranche and subsequently NHA; (b) implementation of the EMP under supervision by the CSC; (c) submit monthly environmental monitoring reports to the CSC; (d) in case of unpredicted environmental impacts occurring during project implementation immediately inform the CSC and subsequently NHA; (e) in case of any major accident at the construction site immediately inform the CSC; (f) adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and civil works; (g) reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction.

B. Land Acquisition and Resettlement

54. Tranche 1. Tranche 1 is categorized as A for Involuntary Resettlement safeguards. Land acquisition and rehabilitation of income and productive assets of displaced persons will follow the requirements in the ADB’s SPS (2009), Pakistan’s Land Acquisition Act 1894 (LAA) and provincial regulations related to land acquisition and resettlement. In case of conflict, the provisions under ADB SPS (2009), will be followed. Under Tranche 1, the draft land acquisition and resettlement plans (LARPs), based on preliminary design were prepared for Petaro–Sehwan and Ratodero– Shkarpur road sections during appraisal. Following the detailed design, these LARPs were updated and approved by ADB. Their implementation is ongoing. A social due diligence report (DDR) was prepared for Dara Adamkhel–Peshawar section where activities do not have IR impacts. The LARF, updated LARPs and DDR were disclosed following ADB approval and NHA endorsement.

55. Tranche 2. Tranche 2 is also categorized as A for Involuntary Resettlement safeguards. For the project, the three draft LARPs were prepared following the detailed design: (i) Shikarpur– Kandhkot, (ii) Kandhkot–Kashmore, and (iii) Kashmore–Rajanpur and disclosed on ADB website in July 2020. When preparing the three draft LARPs, a series of public consultations with potential displaced people and relevant local stakeholders were organized as well as the census and inventory of displaced people’s losses. Before NHA started the finalization in mid of 2020, it decided that, out of the three draft LARPs, the one for the Kashmore-Rajanpur section was split into two (Kashmore-Roijan and Roijan-Rajanpur) to be consistent with the sectionalization of the civil works contracts. Hence the section-wise three draft LARPs will be updated as four implementation ready LARPs based on final assessment of all impacts. The four implementation- ready section-wise LARPs will be cleared and approved by ADB within third quarter of 2021, based on which the implementation will commence. The civil works contracts will not be awarded until ADB approves the four implementation-ready LARPs. Once the external monitor validates that all the entitlements have been fully provided and ADB approves the external monitoring report, the sections will be handed over to the contractors. NHA is considered to have adequate capacity to implement the LARPs although further reinforcement is required.

56. NHA will ensure that: (a) LARPs for each subproject are updated and submitted to ADB for review following the detailed design and updated to address subsequent unanticipated impacts. Such updated LARPs will be uploaded to the project and ADB website for disclosure. These LARPs will be summarized in a brochure in Urdu which will be disseminated to the displaced persons; (b) for Dara Adamkhel–Peshawar section, which is assessed as having not IR impacts, a social due diligence review will again be conducted following detailed design to confirm the earlier assessment. In case impacts are identified, a resettlement plan will be prepared to address such impacts prior to works contract award; (c) no works contract will be awarded for a Subproject involving involuntary resettlement impacts until NHA has prepared and submitted to ADB the final LARP for such Subproject based on the detailed design and obtained ADB's clearance of such LARP; (d) all land and rights of way required by the project shall be cleared and made available in a timely manner (in accordance with the schedule as agreed in the relevant civil works contract); (e) the activities of the civil works contractor for the project road follow the approved LARPs. and no physical displacement or economic displacement shall occur and no road section or part of a road section is handed over to the civil works contractor

until: (i) compensation at full replacement cost has been paid to all displaced persons in accordance with the updated and finalized LARP for relevant sections that are ready to be constructed; (ii) other entitlements listed in the updated and finalized LARPs have been provided to displaced persons; and (iii) LARP implementation report is submitted to ADB and determined as satisfactory; (f) semi-annual internal monitoring reports will be submitted by the CSC to NHA and subsequently ADB for approval. An external monitor is engaged, and external monitoring and compliance reports are submitted to NHA and ADB. ADB posts the monitoring reports to its website for disclosure. ADB no-objection to the commencement of civil works for sections where any involuntary resettlement (IR) impacts is conditional to ADB’s review of the LARP monitoring reports which confirm the completion of the compensation activities; (g) any unanticipated IR impacts identified during implementation of the project will be dealt in accordance with the ADB-approved LARP and requirements of ADB’s SPS (2009). Any new IR-related impacts will require a new LARP which should be submitted to ADB for its approval. No construction activities shall commence in the sections with new/additional LAR impacts before the full implementation of the ADB- approved LARP is confirmed and cleared by ADB; (h) the NHA Environment, Afforestation, Land and Social Wing performs the oversight role in the preparation, implementation and monitoring of LARPs and provide timely advice and support to projects under the MFF on emerging issues during preparation and implementation; (i) an efficient grievance redress mechanisms are in place and functional prior starting LARP implementation and contractor’s mobilization to assist affected persons resolve queries and complaints, if any, in a timely manner; all complaints are registered, investigated and resolved in a manner consistent with the provisions of the grievance redress mechanism as agreed in ADB approved LARF and LARPs; the complainants/aggrieved persons are kept informed about status of their grievances and remedies available to them; and adequate staff and resources are available for supervising and monitoring the implementation progress of the LARP; and, (j) No land will be acquired using the Pakistan's LAA's emergency acquisition procedures for any project under the MFF.

C. Indigenous Peoples

57. The project is screened as category C project for Indigenous peoples planning requirement under ADB’s SPS (2009) and the NHA shall ensure that projects and sub-projects financed under the MFF do not have any indigenous peoples’ impacts within the definition of ADB’s SPS (2009). If during design review or implementation, any change to the scope, location or alignment of road with prior approval of ADB, causes to have any such impacts, NHA shall take all steps required to ensure that the project complies with the applicable laws and regulations of Pakistan and ADB’s SPS (2009).

D. Execution of Contracts for Works

58. NHA will ensure that, subsequent to award of civil works contracts, no notice to proceed is issued to the contractor until the applicable provisions of the LARP (including timely payment of compensations to affected persons), have been complied with. Furthermore, the final environmental assessment report (IEE for category B; EIA for category A) and the EMP are to be incorporated in the bidding and contract documents. NHA will ensure that any unanticipated

33 impact during civil works will be addressed by the contractor in accordance with ADB’s SPS (2009).

59. Prohibited investment activities. Pursuant to ADB’s Safeguard Policy Statement (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of ADB’s SPS (2009). The borrower shall ensure that no proceeds of the loan are used to finance any activity that is included in the list of prohibited investment activities provided in the said appendix of ADB’s SPS (2009).

GENDER AND SOCIAL DIMENSIONS

60. The MFF is classified as No Gender Elements as well as Tranche 1. The main works during civil works will be implemented with use of heavy machinery, with limited use of unskilled labor. However, employment and business opportunities for local communities will be generated during execution of civil works. During implementation NHA will incorporate provisions in bidding documents and civil work contracts that contractors shall (i) comply with Pakistan’s applicable labor laws and related international treaty obligations and not employ child labor; (ii) provide safe work conditions and separate sanitation facilities for male and female workers; (iii) provide equal wage to male and female workers for work of equal value; (iv) provide employment opportunities for women; and (v) carry out programs of preventing HIV/AIDS, illicit drugs and human trafficking at workers’ campsites. Furthermore, NHA with the support of the construction supervision consultants and contractors shall conduct awareness raising campaign for public and workers about health safety and social issues, preventive measures on HIV/AIDS and sexually transmitted diseases, illicit drugs and human trafficking etc.

61. Although the bidding document will include clauses ensuring gender equalities in wages, it is unlikely for women to participate in project civil works or roadside business due to established socio-cultural practices in the province and along the project road.

62. Tranche 2 will support the following actions to address those issues and is classified as Some Gender Elements. Under output 1, the project will provide bus stops with gender-separated rest areas which are accessible for elderly, children, and persons with disabilities. In addition, four emergency response centers will be built along the project road. The centers will provide immediate medical treatments to injured road users and local population who need medical treatment. Meanwhile, under output 2, NHA will carry out educational programs for the staff on gender sensitization and gender-responsive designs in its highway operations and is further committed to ensure the participation of the female professional staff in their respective areas.

63. As with Tranche 1, the civil works under Output 1 will be done using heavy machinery. Hence, there will be limited engagement of unskilled labor., hence the use of unskilled labor is expected to be limited. Nonetheless, income generation opportunities for local communities will be generated during implementation in forms of unskilled labor or roadside business. NHA incorporates provisions in bidding documents and civil work contracts that the contractors shall (i) comply with Pakistan’s applicable labor laws and related international treaty obligations, including ADB’s Core Labor Standards (2006), and not employ child labor; (ii) provide safe and healthy work conditions and sex-separated sanitation facilities at their workcamps; (iii) provide equal wage to male and female workers for work of equal value; (iv) provide employment opportunities for women when available; and (v) carry out programs of preventing sexually transmitted infections, human trafficking, sexual harassment, exploitation and abuse at the project sites including the workcamps. The contractors’ compliance will be monitored and supervised by

34 the project’s construction supervision consultant and their monitoring results will be documented in the consultant’s monthly progress report.

PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework

DESIGN AND MONITORING FRAMEWORK FOR THE INVESTMENT PROGRAM Impact the Investment Program is Aligned with Regional connectivity and trade in CAREC corridors enhanced (CAREC Transport and Trade Facilitation Strategy 2020) 10

Performance Indicators with Targets Data Sources and Results Chain and Baselines Reporting Risks Outcome By 2027: Efficiency for road a. Average daily vehicle-km of a–b. NHA compiled Weak financing traffic along the project roads increased to 6.62 statistics on the arrangements on CAREC Corridors million (2016 baseline: 4.26 asset management development and improved million) system and management of the road performance network jeopardizes b. Average travel time on project monitoring report network sustainability. roads reduced to 7.0 hours (2016 baseline: 9.8 hours) a–b. Facility and project Political instability and completion reports deteriorating security discourage development assistance. Outputs 1. Corridor along 1a. 747 km of CAREC corridor 1a–2a. NHA compiled Unfavorable political N55 along N55 improved by 2027 statistics on the interference affects the constructed or with international roughness asset management implementation capacity of rehabilitated index no higher than 2.0 m/km system NHA. (2016 baseline: not applicable for new carriageways and 3.25 1a–2a. Facility and Shifting government m/km for existing carriageways project completion priorities causes to be rehabilitated) reports insufficient budget 2. NHA capacity 2a. Due diligence works for allocation. strengthened subsequent tranches completed as planned and subsequent tranche projects prepared in compliance with ADB Safeguard Policy Statement (2009) and categorized as procurement- and design-ready.

Key Activities with Milestones 1. Corridor along N55 constructed or rehabilitated 1.1 Signed financing framework agreement by August 2017. (Completed.) 1.2. Submitted periodic financing request for project 1 in Q3 2017. (Completed.) 1.3. Complete due diligence works for project 2 by December 2021. 1.4. Submit periodic financing request for project 2 in October 2020 and approve it in August 2021. 1.5. Complete due diligence works for project 3 by December 2022. 1.6. Submit periodic financing request for project 3 in July 2022 and approve it in September 2022. 1.7. Complete due diligence works for project 4 by December 2023. 1.8. Submit periodic financing request for project 4 in July 2023 and approve it in September 2023. 1.9. Implement and complete all civil works by 2027. 2. NHA capacity strengthened 2.1 Mobilize due diligence advisory services for project 2 by September 2018 and project 3 by September 2020. 2.2 Prepare due diligence reports including feasibility assessment, detailed design, and safeguard-related review and assessment for project 2 by August 2021 and project 3 by December 2021. 2.3 Prepare terms of reference for assistance for project implementation as needed and recruit consultants following the project implementation schedule.

10 ADB. 2014. CAREC Transport and Trade Facilitation Strategy 2020. Manila.

Key Activities with Milestones Inputs ADB: $800 million (regular ordinary capital resources loan) Government: $125 million Assumptions for Partner Financing Not Applicable ADB = Asian Development Bank; CAREC = Central Asia Regional Economic Cooperation; NHA = National Highway Authority. Source: Asian Development Bank.

DESIGN AND MONITORING FRAMEWORK FOR TRANCHE 1 Impact the Program is Aligned with Regional connectivity and trade enhanced via the CAREC Corridors (CAREC Transport and Trade Facilitation Strategy 2020 11)

Performance Indicators with Targets Data Sources and Results Chain and Baselines Reporting Risks Outcome By 2023, Efficiency for road a.1 Average daily vehicle-km of a–b. NHA compiled Rapid deterioration of the traffic along the road from Petaro to Sehwan statistics on the road network caused by CAREC Corridors increased to 0.49 million (2016 asset management weak axle-load control. improved baseline: 0.36 million) system and a.2 Average daily vehicle-km of performance road from Ratodero to Shikarpur monitoring report increased to 0.29 million (2016 baseline: 0.21 million in 2016) a–b. Project completion a.3 Average daily vehicle-km of report road from Dara Adamkhel to Peshawar increased to 0.53 million (2016 baseline: 0.38 million) By 2023: b.1 Travel time from Petaro– Sehwan reduced to 0.73hours (2016 baseline: 1.02 hours) b.2 Travel time from Ratodero to Shikarpur reduced to 0.47hours (2016 baseline: 0.66 hours) b.3 Travel time from Dara Adamkhel to Peshawar reduced to 0.38hours (2016 baseline: 0.53 hours) Outputs 1. CAREC 1a. 66 km from Petaro to Sehwan 1a–2a. NHA compiled Political instability and Corridor along and 43 km from Ratodero to statistics on the deteriorating security N55 Shikarpur along N55 improved asset delays implementation constructed or by 2022 with international management rehabilitated roughness index no higher than system Unfavorable political 2.0m/km (2016 baseline: not interference may 2. NHA capacity applicable) 1a–2a. Project negatively affect the strengthened 1b. 34 km from Dara Adamkhel to completion report implementation of capacity Peshawar along N55 improved development support for by 2022 with international NHA roughness index no higher than 2.0m/km (2016 baseline: 3.25) Insufficient budget 2a. Due diligence works for allocation due to shifting subsequent tranches conducted government priorities and subsequent tranche projects prepared in compliance with ADB Safeguard Policy Statement (2009) and

11 ADB. 2014. CAREC Transport and Trade Facilitation Strategy 2020. Manila.

Performance Indicators with Targets Data Sources and Results Chain and Baselines Reporting Risks categorized as procurement- and design-ready.

Key Activities with Milestones Output 1 CAREC Corridors along N55 constructed or rehabilitated 1.1 Selected supervision consultants by November 2018. 1.2 Complete bid evaluation for civil works contract by September 2020 (including rebidding for Ratodero–Shikarpur section). 1.3 Mobilize contractors by October 2020. 1.4 Complete land acquisition process by the Board of Revenue in 2021. 1.5 Complete payment for compensation and relocation of affected people in 2021. 1.6 Complete civil works by June 2022. Output 2 NHA capacity strengthened 2.1 Recruit consultants for due diligence advisory services by December 2018. 2.2 Complete due diligence works for Tranche 2 by July 2020. Inputs ADB: $120 million (regular ordinary capital resource loan) Government: $13 million Assumptions for Partner Financing Not Applicable ADB = Asian Development Bank, CAREC = Central Asia Regional Economic Cooperation, NHA = National Highway Authority. Source: Asian Development Bank.

DESIGN AND MONITORING FRAMEWORK FOR TRANCHE 2 Impact the Program is Aligned with Regional connectivity and trade enhanced via the CAREC Corridors (CAREC Transport and Trade Facilitation Strategy 2020 12)

Results Chain Performance Indicators with Targets Data Sources and Risks and Baselines Reporting Outcome By 2026 Efficiency for road a. Average daily vehicle-km of road a–b. NHA compiled R: Rapid deterioration of traffic along the from Shikarpur to Rajanpur statistics on the the road network caused CAREC Corridors increased to 1.65 million asset management by weak axle-load improved (2016 baseline: 1.21 million) system and control. (OP 1.3.1, 3.2.5, 7.1.1) performance monitoring report, A: Sufficient road b. Travel time on road from and project maintenance budget Shikarpur to Rajanpur reduced to completion report allocated. 2.6 hours (2016 baseline: 3.4 hours) (OP 1.3.1, 3.2.5, 7.1.1)

Outputs By 2025 1. Sections along 1a. 222 km from Shikarpur to 1a-1b. NHA compiled R: Escalation of the N55 constructed Rajanpur improved with statistics on the pandemic of COVID-19 or rehabilitated international roughness index no asset in the country, causing its higher than 2.0 m/km (2021 management associated adverse baseline: 3.25) (OP 1.3.1, 7.1.1) system, and impacts on the project’s project implementation 1b. Four emergency response center completion built (2021 baseline: not report A: Adverse impacts applicable) caused by COVID-19 (OP 2.4.1) subsidized, allowing 2. NHA capacity smooth project strengthened 2a. Due diligence works for implementation subsequent tranches conducted

12 ADB. 2014. CAREC Transport and Trade Facilitation Strategy 2020. Manila.

Results Chain Performance Indicators with Targets Data Sources and Risks and Baselines Reporting and subsequent tranche projects 2a–2b. Project prepared in compliance with ADB completion Safeguard Policy Statement report (2009) and categorized as procurement- and design-ready. (2021 baseline: not applicable) (OP 1.3.1, 7.1.1)

2b. 500 NHA technical staff trained in accordance with the training program including 40 NHA female officers (2021 baseline: not applicable) (OP 2.2.1)

Key Activities with Milestones 1. Output 1. Sections along N55 constructed or rehabilitated 1.1 Complete recruitment of construction supervision consultants by Q4 2021 1.2 Complete bidding process for civil works by Q4 2021 1.3 Commence civil works for all four sections by Q1 2022 1.4 Complete construction of all civil works by Q4 2024 2. Output 2. NHA capacity strengthened 2.1 Approve the NHA training program by Q3 2021 2.2 Engage individual training consultants by Q4 2021 2.3 Complete implementation of the NHA training program by Q2 2025 Inputs ADB: $235.00 million (regular ordinary capital resource loan) Government: $35.83 million Assumptions for Partner Financing Not Applicable ADB = Asian Development Bank, CAREC = Central Asia Regional Economic Cooperation, NHA = National Highway Authority. Contribution to Strategy 2030 Operational Priorities Expected values and methodological details for all OP indicators to which this operation will contribute results are detailed in Contribution to Strategy 2030 Operational Priorities (Appendix 5) OP 1.3.1: Infrastructure assets established or improved. Target: 222 km. OP 2.2.1: Women and girls enrolled in STEM (science, technology, engineering and mathematics) or nontraditional TVET (technical and vocational education and training). Target: 40 staff. OP 2.4.1: Time-saving or gender-responsive infrastructure assets and/or services established or improved. Target: 4 emergency response centers. OP 3.2.5. New and existing infrastructure assets made climate and disaster resilient. Target: 222 km. OP 6.1.1. Government officials with increased capacity to design, implement, monitor, and evaluate relevant measures. Target: 500. OP 7.1.1: Transport and ICT connectivity assets established or improved. Target: 222 km. Source: Asian Development Bank.

B. Monitoring

65. Project performance monitoring. The Asian Development Bank (ADB) and the National Highway Authority (NHA) have agreed on a preliminary set of indicators to be monitored and for evaluating project performance. Representative indicators are included in the design and monitoring framework. The baseline data will be collected within 6 months of the date of loan effectiveness. At the beginning of project implementation, NHA will confirm baseline values for social, environmental, and poverty reduction impact indicators. Monitoring indicators will be measured, with appropriate frequency, during implementation. Comments and findings regarding these project indicators will be incorporated in progress report to ADB. In addition to indicators for implementation monitoring, indicators for project evaluation will be measured at project completion, and 3 years after completion. Where relevant, indicators will be disaggregated by

39 gender, participatory surveys will take place, and results will be compared with the baseline. A final report will evaluate changes in the preceding 3 years. NHA has developed its monitoring capability for the ongoing projects and has the capacity to monitor the project. A consultant will assist in establishing the monitoring and evaluation system, and periodically updating project impacts on socioeconomic, gender, and environment.

66. Compliance monitoring: Compliance to the covenants will be jointly monitored by NHA and ADB through monthly and semi-annual updates provided by the design review and construction supervision consultant. The consultant will submit to ADB a status report on the covenants with the explanation and time-bound actions on partly or non-complied covenants. Apart from ADB project review missions 2–3 times a year, ADB Pakistan Resident Mission also holds quarterly country portfolio review meetings with NHA to ensure the full compliance of the covenants.

67. Safeguards monitoring: The environmental management plan (EMP) and the site specific EMP (SSEMP) will be monitored and reported to ADB bi-annually with the assistance of supervision consultant team, the performance and results of which (through EMP reports) will be uploaded in ADB and NHA websites. Construction environmental monitoring and monitoring implementation of site-specific health and safety plan for COVID19 prevention and control is a day to day process, which ensures that departures from the EMP are avoided or quickly rectified or that any unforeseen impacts are quickly discovered and remedied. Specific actions in the EMP that are to be monitored are included in the environmental assessment. These include the preparation of plans for aspects of the work, such as construction camps, borrow pits and quarries, establishing crusher and asphalt facilities, and a site safety plan, which need to be completed and approved during the preconstruction phase. Also included are air, noise, and water quality monitoring parameters that follow relevant Pakistan National Environmental Quality Standards (NEQS), as these are more stringent than most of World Bank/IFC standards. The only exception is for particulate matter and for day-time noise in industrial areas, for which categories the WB/IFC standards will be followed. Regular monitoring of the condition of the road surface, bridges, culverts, drainage structures and slope protection structures will also be carried out. In addition, information on the locations, type and consequences. If there are any unforeseen safeguards impacts or incidents these will be reported to ADB immediately for necessary action. The bi-annual environmental monitoring reports will be reviewed by ADB and when approved, will be disclosed on ADB’s website.

68. Monitoring of land acquisition and resettlement (LAR) tasks will be routinely conducted internally by Land Acquisition and Resettlement Unit, NHA in PIU, with the assistance of the Resettlement Specialist mobilized by the Construction Supervision Consultants. The monitoring results of LAR tasks and issues can be included in the monthly project progress reports and LARP implementation will be consolidated into quarterly LARP implementation progress reports by Resettlement Specialist for NHA and ADB until LARP implementation is completed. However, throughout project implementation period, bi-annual monitoring and evaluation reports prepared by an independent external monitor will be submitted to ADB for review and clearance before its disclosure on NHA and ADB websites. The monitoring reports 13 may cover LARP implementation progress with implementation gaps, identified social issues (if any) and recommended corrective actions to ensure implementation of project is fully in consonance with the loan covenants on social safeguards and requirements of ADB’s SPS (2009) as outlined IR safeguards requirement- II. Specific monitoring benchmarks for LAR monitoring include (i) information campaign and

13 The schedule for preparation and submission of bi-annual external monitoring reports will be June and December, while for quarterly LARP implementation progress reports it will be March, June, September and December.

40 consultation with affected persons; (ii) status of grievance/complaints recorded and grievances redressed during monitoring period; (iii) compensation for affected structures and other assets; (iv) relocation of affected persons; (v) payments for loss of income; and (vi) living standard and income restoration activities.

69. Gender and social dimensions monitoring: A summary poverty reduction and social strategy was prepared for Tranche 1 in 2017 and it has been updated for Tranche 2 in 2020. NHA, with the assistance of the construction supervision consultant, shall ensure to implement properly (i) measures to raise public awareness of the risks of HIV/AIDS and other sexually transmitted infections, drug and human trafficking; (ii) requirements for the civil works contractors to take measures to protect construction workers from the risks of HIV/AIDS and other sexually transmitted infections, and for the testing and treatment of construction workers; (iii) awareness raising among civil works contractors of important social and health issues; and (iv) measures to maintain the contractors’ labor environment in healthy condition. Those listed will be incorporated into the civil works contracts, and any environment-related items are included in the mitigation provisions of the site specific EMP which will be prepared by the contractor after it is mobilized. The construction supervision consultant includes one international and national social safeguards specialist, who will be responsible for monitoring the contractors’ compliance with the above listed items and documenting it’s the consultant’s monthly progress reports.

C. Evaluation

70. ADB will field an inception mission within 3 months after signing of the loan agreement. Review missions will be carried out every 4–6 months jointly by representatives of ADB, the Borrower, and NHA. The review missions will assess the status of the project implementation and site visits are also required, whenever possible. ADB and the government carried out a midterm review of project implementation in 2021 for Tranche 1, while the one for Tranche 2 is currently scheduled in 2023. The review will focus on project impacts, particularly those relating to institutional, administrative, organizational, technical, environmental, and social aspects and poverty reduction. The project’s economic viability, and other aspects that may have an impact on project performance, will be assessed. The review will examine the implementation progress of policy reforms and compliance with assurances specified in the loan agreement. This will allow for any necessary mid-course corrections to ensure successful implementation and the achievement of the project objectives.

D. Reporting

71. NHA will provide ADB with (i) monthly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated semi-annual project progress reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, and (c) updated implementation plan for next 12 months; (iii) bi-annual safeguards monitoring reports separately for environment and resettlement; and (iv) a project completion report within 6 months of physical completion of each tranche. A facility completion report will be submitted within 6 months of completion of the investment project. To ensure projects continue to be both viable and sustainable, project financial statements together with the associated auditors' report, would be adequately reviewed by NHA and ADB.

E. Stakeholder Communication Strategy

Means of Responsible Project Documents Communication Party Frequency Audience(s) Project data sheet ADB’s website ADB Initial project data sheet General public posted on the website no later than 2 weeks after approval of the concept paper; updated at least twice a year

Design and monitoring ADB’s website ADB Key information from the General public framework draft reflected in project data sheet; final version posted on the website at the same time it is circulated to the Board for approval, subject to the concurrence of the government

Environmental ADB’s website and NHA, ADB Draft IEE posted on the General public, assessment report local disclosure website before appraisal; project-affected and the final version no people later than 2 weeks of receipt by ADB Draft EIA posted on website at least 120 days prior to appraisal

Resettlement plan ADB’s website NHA, ADB Draft posted on the General public, website before appraisal; project-affected and the final/updated people version no later than 2 weeks of receipt by ADB

Loan agreement and ADB’s website ADB Posted on the website no General public project agreement later than 2 weeks from their signing, after removing any information falling within exceptions at the time of the negotiations

Report and ADB’s website ADB Posted on the website at General public recommendation of the the same time it is president circulated to the Board for approval, subject to the concurrence of the government

Summary of poverty ADB’s website ADB Posted on the website at General public reduction and social Consultation NHA the same time it is strategy circulated to the Board for approval, subject to

Means of Responsible Project Documents Communication Party Frequency Audience(s) the concurrence of the government

Procurement ADB website for ADB Available online (current General public, requirements procurement and archive) potential civil notice (ACN/SPN), works consulting services contracting recruitment notice, firms invitation for bids, Local newspaper NHA advertisement

Facility administration ADB’s website ADB Posted on the website at General public manual the same time it is circulated to the Board for approval, subject to the concurrence of the government

Environmental and social ADB’s website ADB Routinely disclosed upon General public, safeguard monitoring NHA’s website NHA receipt project-affected reports people in particular

Audited project financial ADB’s website ADB Within 30 days of receipt General public statements and the auditors' report

Project completion report ADB’s website ADB Within 2 weeks of General public circulation to the Board for information

Evaluation report ADB’s website ADB Within 2 weeks of General public circulation to Management and the Board

ADB=Asian Development Bank, ACN= advance contracting notice, CSRN = consulting services recruitment notice, NHA = National Highway Authority, SPN = specific procurement notice.

ANTICORRUPTION POLICY

72. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project. 14 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project. 15

14 Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 15 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp

73. To support these efforts, relevant provisions are included in the loan agreement and the bidding documents for the Project. Further, NHA will establish eligibility criteria for persons serving on bid evaluation committees and require full disclosure of relevant interests and any potential conflict of interests. Additionally, NHA will engage private firms to conduct technical audits of randomly selected works contracts within 12 months of commencement of the contract and six months prior to NHA taking over the project site from the contractor.

ACCOUNTABILITY MECHANISM

74. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism. 16

RECORD OF CHANGES TO THE FACILITY ADMINISTRATION MANUAL

75. All revisions and/or updates during implementation should be retained in this section to provide a chronological history of changes to implemented arrangements recorded in the FAM, including revision to contract awards and disbursement s-curves.

Date Revisions 28 September 2017 Original version (loan approval date) 2 June 2020 First revision after fact-finding mission for Tranche 2 1 September 2020 For Management Review Meeting for Tranche 2 29 April 2021 For loan negotiations for Tranche 2 20 July 2021 For the President’s approval of Tranche 2

16 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.

Appendix 1 44

Procurement Plan (Tranche 1)

Appendix 1 45

46 Appendix 1

47 Appendix 1

Procurement Plan (Tranche 2)

Basic Data Project Name: Central Asia Regional Economic Cooperation Corridor Development Investment Program-Tranche 2 Project Number: 48404-004 Approval Number: TBD Country: Pakistan Executing Agency: National Highway Authority Implementing Agency: Project Procurement Risk: Moderate N/A Project Financing Amount: US$ 270,830,000 Project Closing Date: 31 December 2025 ADB Financing: US$ 235,000,000 Cofinancing (ADB Administered): Non-ADB Financing: US$ 35,830,000 Date of First Procurement Plan: 16 June 2020 Date of this Procurement Plan: 20 July 2021 Procurement Plan Duration (in months): 18 Advance Contracting: e-GP: Yes Yes

A. Methods, Review and Procurement Plan

Except as the Asian Development Bank (ADB) may otherwise agree, the following methods shall apply to procurement of goods, works, and consulting services.

Procurement of Goods and Works Method Comments Open Competitive Bidding (OCB) for Works One civil works package with four lots of: - Shikarpur-Kandh Kot (62.42 km) - Kandh Kot-Kashmore (58.78 km) - Kashmore-Rojhan (47.8 km) - Rojhan-Rajanpur (52.9 km)

Consulting Services Method Comments Quality- and Cost-Based Selection for Consulting Firm One construction supervision consultancy package

B. Lists of Active Procurement Packages (Contracts)

The following table lists goods, works, non-consulting and consulting services contracts for which the procurement activity is either ongoing or expected to commence within the procurement plan duration.

Goods and Works Advertisement Package General Estimated Procurement Bidding Review Date Comments Number Description Value (in US$) Method Procedure (quarter/year) CAREC-2 Dualization of 223,240,000 OCB Prior 1S2E April 2021 Non-Consulting Shikarpur- Services: Yes Rajanpur Section (N55) Advertising: International

No. Of Contracts: 4

Prequalification of Bidders: No

Domestic Preference

48 Appendix 1

Applicable: No

Advance Contracting: Yes

Bidding Document: Large Works

High Risk Contract: No

Comments: The exchange rate is Rs168.84/$. Lot 1: Shikarpur- 56,550,000 Kandh Kot

Lot 2: Kandh 76,380,000 Kot-Kashmore

Lot 3: 42,440,000 Kashmore- Rojhan

Lot 4: Rojhan- 47,870,000 Rajanpur

Consulting Services Advertisement Package General Estimated Selection Type of Review Date Comments Number Description Value (in US$) Method Proposal (quarter/year) CS Construction 9,400,000 QCBS Prior FTP August 2020 Non-Consulting supervision Services: No consultant Type: Firm

Assignment: International

Quality-Cost Ratio: 90:10

Advance Contracting: Yes

Comments: The contract will cover both tranche 2 and 3 under the MFF.

C. List of Indicative Packages (Contracts) Required Under the Project

The following table lists goods, works, non-consulting and consulting services contracts for which procurement activity is expected to commence beyond the procurement plan duration and over the life of the project (i.e., those expected beyond the current procurement plan duration).

Appendix 1 49

Goods and Works Package General Estimated Procurement Bidding Review Comments Number Description Value (in US$) Method Procedure CAREC-3 Construction of 3,570,000 OCB Prior 1S2E Non-Consulting Services: four emergency Yes response centers and motor policy Advertising Type: facilities National

No. Of Contracts: 1

Prequalification of Bidders: No

Domestic Preference Applicable: No

Bidding Document: Large Works

Consulting Services Package General Estimated Selection Type of Review Comments Number Description Value (in US$) Method Proposal None

50 Appendix 2

Terms of Reference for the Design Review and Construction Supervision Consultant (Tranche 1)

A. Background

1. The Government of Pakistan (the Government) requested the Asian Development Bank (ADB) to help finance the Central Asia Regional Economic Cooperation Corridor Development Investment Program (the Investment Program) under a Multi tranche Financing Facility (The Facility). The Government requested the first tranche to be disbursed to finance Tranche 1 of the Investment Program, which aims to improve the 208 km of road for the three sections i.e. (i) Dualization of Petaro–Sehwan Section (66 km); (ii) Dualization of Ratodero-Shikarpur Section (44 km); and (iii) Rehabilitation of Dara Adam Khel-Peshawar Section (36 km). The CAREC road network corridor 5 & 6 will connect Pakistan up North to the People’s Republic of China and West through Afghanistan respectively. Asian Development Bank lately designated N-55 section between Peshawar to DG Khan as an important CAREC Link other than Corridor 5 & 6. Moreover N-55 from Peshawar to Hyderabad is 1,228 km in length. On the right bank of river Indus, it is the shortest north-south route between Peshawar and Karachi. Government of Pakistan realizing its importance is already working on the improvement and dualization of this Road in various sections. The project will rehabilitate, reconstruct and construct additional carriageway of the following in Tranche-1 financing:

Road Section Length (km) Petaro–Sehwan Section (Dualization) 66

Ratodero–Shikarpur Section (Dualization) 43

Dara Adam Khel–Peshawar Section (Rehabilitation) 34 Total 143

2. The National Highway Authority (NHA) will be the Executing Agency and the Project Implementation Unit (PIU) under (NHA) will be the Implementation Agency which will be established with the General Manager “GM” (Employer’s representative) as the head. NHA requires the services of Design Review and Construction Supervision Consultants to carry out design review, construction supervision & contract administration, implementation & monitoring of Environmental Management plans where required. In undertaking the design review of the project, the consultant is to take into account the procurement of the project's civil works will be proceeding in parallel with this consultant selection process, with the objective that the consultant's and the civil works contracts can be signed at the same time. Accordingly, the consultant's review of the designs must reflect the possible contractual impacts arising from recommending substantial changes to the designs, for contracts that have already been procured. Where in the consultant's opinion such changes are essential, its recommendations to the client must reflect the possible risks in terms of contractual claims, delays, or other impacts.

3. Brief Description of Road Projects: Brief description of the T1 project roads under is given below:

Ratodero-Shikarpur Dara Adam Khel- Road Section Petaro-Sehwan Road Road Peshawar Road Connection Points: Petaro (Start Point Km Ratodero (Start Point Peshawar (Km 6+384) – Petaro – Km 334+000) – Dakkan 1192+000; First bridge

Appendix 2 51

Ratodero-Shikarpur Dara Adam Khel- Road Section Petaro-Sehwan Road Road Peshawar Road Aliabad – Khanote – – Garhi Yasin – Kabalo location at Kohat Road, Manjhand – Lakha – – Karan – Shikarpur 1.5 Km away from Ring Sann – Chhachhar – (End Point Km 378+200) Road, Peshawar) – Aamri – Lakki Shah Badaber – Mattani – Saddar – Sehwan (End Dara Adam Khel (End Point Km 134+384). Point Km 1228+000) Present Condition: Fair to Poor Fair to Poor Fair to Poor Functional since 1985 Functional since 1985 Functional since 1985 Existing 7.3 meter Existing 73 meter Existing 7.3 meter dual- carriageway (two Lane) carriageway (two lane) carriageway (dual lane with 3.0 meter earthen with 3.0 meter earthen on each direction) with shoulders on both sides. shoulders on both sides. 2.0 meter outer shoulder Additional carriageway and 1.0 meter inner shall be bituminous shoulder. road. Proposed Proposed additional 7.3 Proposed additional 7.3 HMA overlay has been Improvement: meter carriageway (dual meter carriageway (Dual proposed. carriageway) with 1.0 Carriageway) with 1.0 New design of shoulders meter inner treated meter inner treated has been proposed. shoulder and 3.0 meter shoulder and 3.0 meter outer earthen shoulder. outer earthen shoulder. Additional carriageway shall be bituminous road. Road National Highway Classification: Right of Way: 16.50 + 16.50 = 33 16.50 16.50 = 33 12.5 + 12.5 = 25 meters meters meters (Minimum Variable)

Alignment: Plain Plain Plain

Geo-graphical Terrain: Level to Rolling Geo-graphical Features: Terrain: Level to Rolling Features: Terrain: Level to Rolling

Climate: Hot. The annual Climate: Hot. The Hot to Cold. The maximum temperature is maximum temperature maximum temperature higher than 45oC. The generally goes up to remains below 40oC. annual minimum 50oC. The minimum The minimum temperatures sometimes temperatures always temperatures generally up to 15oC. remain above 15oC. remain below 0oC.

Benefits: The beneficiaries of the The beneficiaries of the The beneficiaries of the project will be project will be project will be communities served by communities served by communities served by the project road, although the project road, the project road, not necessarily travelling although not necessarily although not necessarily on the new road, will travelling on the new travelling on the new benefit indirectly from the road, will benefit road, will benefit improved, lower cost and indirectly from the indirectly from the faster transport services improved, lower cost improved, lower cost and thereby obtain and faster transport and faster transport improved access to services and thereby services and thereby economic opportunities obtain improved access obtain improved access and social services. to economic to economic

52 Appendix 2

Ratodero-Shikarpur Dara Adam Khel- Road Section Petaro-Sehwan Road Road Peshawar Road Government and non- opportunities and social opportunities and social government agencies services. services. using the project road will Government and non- Government and non- improve their services government agencies government agencies delivery due to improved using the project road using the project road transport efficiency. will improve their will improve their Enhancement of socio- services delivery due to services delivery due to economic activity of the improved transport improved transport highway traversed efficiency. efficiency. districts. Enhancement of socio- Enhancement of socioeconomic activity of the economic activity of the highway traversed highway traversed districts. districts.

4. The consultancy services would be required for a period of 39 months including the defects notification period, which will be 12 months. Total input of 67 person-months International and 345.5 person-months national consultants would be required for the assignment.

5. The Consultants will perform the duties of the Engineer specified in the FIDIC conditions of contract and will be required to nominate Resident Engineers for the contract(s) that will be a full-time resident in the areas or located in the proximity of project areas. In addition to the primary role, the Consultants will assist the Employer in the efficient administration and implementation of the sub-projects, support and strengthen it in its tasks, monitor progress, financial management, social and environmental safeguards and gender mainstreaming in the project. The Consultants will report to the General Manager (GM) appointed by NHA. The Consultants will work under the overall guidance, coordination and directions of the GM.

B. Objective

6. The overall objectives of these Terms of Reference are to:

(i) Ensure that the detailed engineering design is reviewed, and updated if required, in accordance with the specified parameters / standards and best international practices prior to implementation of civil works contracts.

(ii) Ensure that high quality construction is achieved in time within budget and that all work is carried out in full compliance with the approved engineering designs, technical specifications, agreed work schedule, and within the terms and conditions of all other contract documents and sound engineering practices;

(iii) Demonstrate the efficacy of contract administration and supervision by independent external agencies;

(iv) Ensure safeguards management for tranche-1 project i.e. updating, and implementation of the LARPs, and incorporating EMPs in the works contracts, preparation and implementation of site specific EMPs which are fully consistent with the ADB’s safeguards requirements. Monitor and evaluate the implementation of environmental management plan, resettlement plan and other social safeguard measures to be taken by the contractor and Employer.

Appendix 2 53

(v) Promote technology transfer and the introduction of modem Contract Administration practices within NHA.

C. Scope of Consultancy Services:

7. General Duties and Responsibilities of the Consultants.

(i) Review (if required) Bid documents for the project and assist NHA in prequalification of contractors, if required, evaluation of bids received and award of civil works contracts;

(ii) The Consultants will carry out a critical review of the detailed engineering design prior to the commencement of works to identify anomalies or omissions that constitutes inconsistency in the design and completeness of works. This design review should be completed in three (3) months’ time and the design review report will be submitted within three (3) months. The design report should clearly indicate if any section of the road requires adjustment in the horizontal and vertical alignment, changes to the structures and identify the LARP and non LARP areas. Further, the IEE and EMP are to be updated as applicable at the detailed design stage based on the final road alignments. On completion of the review, the Consultant will prepare a report, setting out all findings and recommendations for correcting any defects or omissions identified. Notwithstanding these, the Consultant will immediately inform the employer of any defect or omission that may have a substantial impact on the Project at the time the defect or omission is uncovered.

(iii) Civil works will be carried out based on the FIDIC Conditions of Contract for Construction, MDB Harmonized Edition – June 2010. The consultant will administer the civil work’s contracts, make engineering decisions, be responsible for quality assurance, provide general guidance and furnish timely responses to the contractors in all matters relating to the civil works, and ensure that all clauses of the contract agreement between the civil works contractors and PIU are adhered to and respected.

(iv) The consultants will advise PIU on all matters relating to the efficient and successful execution of the civil works contracts, and will act at all times to protect the interests of the project and will take all reasonable steps to keep the construction costs to a minimum, consistent with sound economic and engineering practices; and will prepare a “Contract Administration and Construction Supervision Manual” outlining routines and standard operating procedures to be applied in contract administration and construction supervision, based on sound internationally recognized practice.

8. Design Review: The Consultant will review and validate on ground, the detailed engineering design including the design reports, design calculations and design drawings. Thereafter the Design Review Consultants will bear the professional liability for the accuracy of the design, which will be covered under this contract. The design review shall include but not be limited to the following tasks; (i) Review & ensure that the design meets all the standards and parameters specified in these ToR for supervision consultants, NHA specifications and

54 Appendix 2

best international practices. The design criteria used are:

Description Codes Geometric Design A policy on Geometric Design of Highways and Streets 2011 AASHTO Pavement Design AASHTO guide for Design of Pavement Structures 1993 Highway Safety Manual of Uniform Traffic Control Devices, Highway Safety Wing, Design Ministry of Communication, Government of Pakistan. Design Standards for Bridges and Cross Drainage Structures: -AASHTO LRFD (Latest Edition- 2012 -Pakistan Highway Code of Practice for Bridges 1967 -UBC/IBC 2007: For Seismic zoning

(ii) Review and ensure that the geometric alignment particularly the horizontal curve and vertical profile of National Highways as well as service roads, meets the minimum specified criteria.

(iii) Review and ensure that a cost-effective embankment height, has been adopted throughout the alignment, based on the required capacity of soil, depth of water table and drainage pattern of the surrounding area.

(iv) Review and ensure that the pavement is most efficient and cost effective; design has been carried out on the basis of traffic studies conducted by the Design Consultants, characteristics of the proposed pavement materials, the calculated axle loading (ESALs) and prescribed design life.

(v) Review and ensure that the design parameters, calculation, location and layout of hydraulic and other traffic engineering structures to include bridges, flyovers, underpasses and culverts, on the basis of hydrology report, geotechnical investigations, soil analysis, drainage pattern, and site conditions, ensuring that safe and cost-effective designs are adopted.

(vi) Review and ensure that the design of roadside drainage and cross drainage structures has been carried out as per the site requirement and flow patterns/calculations of runoff.

(vii) Review and ensure that the design, lay out and requirement of retaining walls, breast walls, other retaining structures, and slope stability/ slide control measures are as per the geotechnical requirement and site conditions.

(viii) Review and ensure that the requirement for U turns, underpasses, overhead bridges, Entry/ Exits, Service lanes, and all other highway related works have been included in the design.

(ix) Review existing soil reports provided by the Employer and suggest any additional testing, if required;

(x) Carry out the Highway Safety Audit as per international standards after a detailed site visit. Consultants will ensure that all safety measures are taken without any

Appendix 2 55

compromise in the design and recommend improvement/missing safety measures, if any before execution of the road; Verify a highway safety audit to ensure that all traffic signs, pavement marking, and pavement studs have been provided in the design as per the requirement. Check proposed work zone safety requirements are in accordance with best international practices;

(xi) Based on the finding of Initial Environmental Examination (IEE), ensure that adequate measures are incorporated in the design to mitigate the adverse impact including those likely to be encountered during construction and recommend any improvement and support NHA in establishing and operationalizing a Grievance Redress Mechanism (GRM) as detailed in the IEE;

(xii) Based on design review, i) prepare social due diligence reports confirming project road sections with and without LAR impacts, including clearly marking LAR and non-LAR sections in the field and reflected in a linear plan and timelines for updating of LARPs ii) and update the LARPs based on horizontal and vertical alignment adjustments proposed/incorporated (if any) in design. Assist PIU in a) establishing a LAR database, b) planning and implementation of public consultations during design review and c) operationalizing Grievance Redress Mechanism (GRM) with complaints recording, tracking, monitoring and community outreach systems.

9. Contract Administration & Construction Supervision. The scope of construction supervision and contract administration services of the Consultant shall include but will not be limited to the following tasks:

1) Prepare the Pre-Construction meeting agenda, and conduct the Pre-construction meeting, record and distribute the minutes;

2) Appoint various members of the Engineer’s construction supervision team as the Engineer’s Assistants (Resident Engineers. Material Engineers, Inspectors, etc.) and notify the Contractor and the Employer, and approve the Contractor’s Representative;

3) Verify whether the Performance Security complies with the form provided in the Contract, whether it is in the correct amount and currencies, and notify the Employer accordingly;

4) Advise the Employer whether to accept the Performance Security;

5) If the Contractor does not submit the Performance Security on time, notify and advise the Employer of the appropriate contractual remedies;

6) Request the Contractor to increase the amount of the Performance Security if the Contract Price increases and monitor the validity of the Performance Security until the issue of the Performance Certificate;

7) Verify whether the bank guarantee for advance payment is in the form specified under the Contract and in the amount and currencies stated in the Particular Conditions of the Contract;

56 Appendix 2

8) Verify whether the bank guarantee for advance payment conforms to the Contract requirements and that the guarantee is valid until the entire advance payment is recovered from the Contractor’s certificates;

9) Interpret the specific provisions of the Contract related to the Employer’s obligation to give possession of the Site, and the Contractor’s Work Program, assess the contractual consequences of any specific land acquisition issue and advise the Employer on the appropriate mitigation measures;

10) Obtain the Parties’ confirmation that all conditions in Sub-Clause 8.1 of the Conditions of Contract are fulfilled;

11) Issue instruction to the Contractor to commence the works and record the Parties agreement according to Sub-Clause 8.1 of the Conditions of Contract;

12) Verify whether the form and substance of the evidence of the Contractor’s insurances is satisfactory, whether insurance premiums have been paid and the required insurances are effective on the dates required by the Contract;

13) Verify that the terms of the Contractor’s insurance policies fully comply with the requirements of the Contract including:

a. whether both the Employer and the Contractor are adequately covered as insured Principals; b. amounts insured and currencies of payment, validity of the insurance policies, special conditions; c. limits of insurance per event and in aggregate, deductibles, excess, conditions related to locations; d. whether and which subcontractors are covered by the insurances, and whether additional insurances will be required if the Contractor engages new subcontractors.

14) Monitor whether the Contractor maintains adequate insurance in the course of performance of the Contract, particularly if the Contractor provides insurances for a fixed period which is shorter than the period required under the Contract;

15) Advise the Employer on the appropriate action and contractual remedies in case that the Contractor does not perform its insurance obligations in accordance with Contract;

16) Without relieving the Contractors of their obligations under the Contract, review and approve the traffic management and safety plan, and ensure compliance such that the Works are carried out at all times in a safe and secure manner and damage or injury to persons or property is avoided;

17) Obtain the bench marks and other information from the NHA Design Section as required for commencement of construction activities;

18) Ensure that the Contractors have all necessary data for setting out and check the Contractors setting out including staking the right-of-way limits, centerline, and grade and confirm permanent monuments in the construction area;

Appendix 2 57

19) Ensure that all land and all rights-of-way required for the Project and all Project facilities are made available to the Works contractor in accordance with the schedule agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Borrower relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; and (c) all measures and requirements set forth in the LARP, and any corrective or preventative actions plan set forth in a Safeguards Monitoring Report;

20) Assist the PIU in notifying the contractors on LAR and non-LAR sections and ensuring that works are conducted only in LAR-free areas and areas where LARP implementation has been completed;

21) Support PIU in ongoing public consultations throughout the construction phase and in resolving environment related complaints through the GRM;

22) Submit semi-annual reports during construction and annual reports thereafter with separate environmental and social Safeguards Monitoring Reports to ADB, and disclose relevant information from such reports to affected people promptly upon submission;

23) If any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE, the CEIA, the EMP, the SSEMP or the LARP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan;

24) Report any actual or potential breach of compliance with the measures and requirements set forth in the EMP, the SSEMP or the LARP promptly after becoming aware of the breach.provide NHA with a written notice of any unanticipated environmental, or resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the CEIA, the EMP, the SSEMP or the LARP;

25) Carry out the following duties related to environmental management with particular reference to the technical requirements of sound environmental standards on the basis of the Environmental Assessment and Review Framework (EARF), the Initial Environmental Examinations (IEEs), and the Environmental Management Plans during construction: (i) review and endorse site specific Environmental Management Plans (EMPs) for the projects sections, prepared by the Contractors; (ii) ensure that all the environmental mitigation measures required to be implemented are incorporated into the contract documents; (iii) ensure that the Contractors comply with the measures and requirements relevant to the contractors set forth in each IEE and EMP, and any corrective or preventative actions set out in Environment Monitoring Reports; (iv) conduct environmental monitoring and ensure that the day-to-day construction activities are carried out in an environmentally sound and sustainable manner; (v) prepare and submit semi-annual environmental monitoring reports on the implementation of the ‘Environmental management Plan (EMP) to PIU within 14 days after a

58 Appendix 2

completion of the monitoring period; (vi) Prepare additional environmental impact assessments, if required, compliant with ADB’s SPS (2009) and ensure that all required mitigation measures are identified and acceptable; (vii) in the event of unanticipated environmental and/or social risks and impacts, that were not considered in the applicable IEE, or EMP, promptly inform PIU and ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; (viii) report to ADB/PIU of any actual or potential breach of compliance with the measures and requirements set forth in the applicable EMP promptly after becoming aware of the breach;

26) With respect to the prevention of HIV/AIDs and Human Trafficking, monitor that the contractors comply and carry out required actions as provided in the respective contract documents, such as awareness and education of laborers and workers;

27) Ensure that the contractors do not involve child labor for the execution of the civil works contracts in accordance with the provisions of the contract agreement;

28) Without relieving the Contractors of their obligations under the Contract, check and approve the contractors' Working Drawings, Method Statements and Temporary Works proposals;

29) Review the Contractor’s Work Program and notify the Contractor if the program does not comply with the Contract;

30) Monitor the progress against the Work Program and the cash flow estimate and request revisions, if required;

31) Report in the Consultant’s Monthly Report the work progress against the Contractor’s Work Program and the cash flow estimate;

32) Verify whether the progress charts in the Contractor’s Monthly Progress Report reflect the actual progress and correspond to the latest revision of the Work Program and the cash flow estimate, and instruct the Contractor to correct the report, if required;

33) If required, determine the Contractor’s entitlements to time extensions on the basis of the Contractor’s Work Program;

34) Determine the Employer’s entitlement to Delay Damages on the basis of the Work Program and advise the Employer of the relevant contractual remedies if the Contractor’s progress is behind schedule;

35) Verify the Contractor’s Monthly Progress Reports and notify the Contractor of any incorrect or inconsistent information;

36) Conduct regular weekly site meetings and monthly progress review meetings, record and distribute the minutes; 37) Perform quantity take-offs from drawings to verify BoQ quantities;

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38) Issue regular notices to the Contractors of intended field measurements, measure the Works, compute the quantities for payment, and determine the amounts due to the Contractor within the period specified in the Contract;

39) Carry out any subsequent design changes, and expeditiously issue supplementary drawings, site instructions, variation orders and day work orders to avoid delay to the works and to ensure that the works are executed in accordance with Contract;

40) Establish and maintain throughout the works contracts a structured system of measurement records, supporting documents and calculations for the payment of all BoQ items, that is transparent for auditing purposes;

41) Provide all necessary assistance to the Employer and external auditors for conducting regular quarterly audits of the measurement records, supporting documents and calculations for the payment of all BoQ items;

42) Verify the sources of indices or prices for price adjustment, determine a provisional value of an index/reference price until it is published, but, if the index is not published in certain period(s), apply the last available published value;

43) Establish with the Contractor a standard format for the Contractor’s Statement and the Interim Payment Certificates;

44) Issue the interim certificates to PIU for payment to the Contractors in accordance with Clause 14 of the Conditions of Contract, having regard to any contractual provisions for advance payment, variation of price, and exchange rate fluctuation etc. Certify the completion of the Activities/Works or parts thereof and process final payments to the Contractors;

45) Prepare and maintain the Estimates of Cost of Works to Completion continuously, update the Estimates after each Variation instruction or a Variation Order issue and after each IPC, and present the latest Estimate in the Consultant’s Monthly Progress Reports;

46) Initiate and process variations promptly, when it is necessary for the construction of the works;

47) Request the Contractor’s technical and cost proposal, as required, consult both parties in all matters in connection to variation work;

48) Value variations, obtain the Employer’s approval of any variation, issue variations under the Contract, keep record of all variations issued under the Contract and report the summary of the variations in the Consultant’s Monthly Progress Reports;

49) Discharge fully the Engineer’s obligations with respect to approval of materials and workmanship, approval and auditing of the Contractor’s Quality Assurance System and the QA Personnel and the compliance testing by the Engineer;

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50) Inspect quarries and borrow pits, and crushing plants, and order tests of materials and ensure adherence to specifications, and approve the sources of materials;

51) Without relieving the Contractors of their obligations under the Contract, monitor the Contractors' laboratory testing, evaluate the Portland cement concrete and bituminous mixture designs prepared by the Contractors, and recommend improvements (if any) to ensure the desired performance, and accord approval thereof;

52) Carry out independent testing in the field and/or in the laboratory of the "Engineer/Project Manager”, and approve or disapprove and certify the works that conform with the specifications and maintain permanent records of results of all the tests made;

53) Give notice to Contractors of any defects and deficiencies, and issue instructions for the removal and substitution of the improper works, where provided under the contract. If required, order suspension of the work(s) and/or recommend to PIU other recourse available under the Contract;

54) When the works are completed in accordance with the Contract, issue a Taking Over Certificate to the contractor(s);

55) Undertake an inspection of the works at the completion of the respective road sections, and certify the contractor(s)’ final accounts;

56) Obtain the Employer’s specific approval before taking any action for determination of extension of time, additional costs and the Contractor’s claims for additional time or costs, for all events for which the Employer’s express approval is required under the Contract;

57) Assess objectively the Contractor’s claims and give professional and objective advise to the Employer, consult both parties before determining an extension of time;

58) Determine Contractor’s claims on the basis of the Contractor’s Work Program, the impact of the delay(s) event on the Critical Path and the particulars submitted by the Contractor, and not to act as the Contractor’s advisor in this matter;

59) Prepare standard Daily Diary forms and ensure that all supervision staff maintain daily diaries of Contractor's and its own activities;

60) Assess minimum construction equipment, plant and machinery requirements, by type and specification, and monitor, keep and regularly update a list of the Contractors' equipment, plant and machinery in order to keep a check on the Contractors' mobilization. Inspect and evaluate the Contractor’s establishments including in particular the laboratory facilities to ensure compliance with the terms and conditions of the Contract;

61) Maintain an Events Log starting at beginning of the Contract;

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62) Assist the parties establish Dispute Board, provide all necessary information to DB members and attempt to facilitate amicable settlement of the dispute between the Employer and the Contractor;

63) Establish and maintain an effective documents management system in the Engineer’s office, which provides for separate filing of incoming and outgoing correspondence and documents, as well as the filing by subject matter;

64) Carry out detailed inspections of the works during the Defects Notification Period and prepare detailed inspection and recommendation reports for the Employer after each inspection;

65) Ensure that the contractor(s) provide a safe workplace for their workforce, supervisory personnel and for members of the public requiring access through the sites in full conformity with Health and Safety regulations;

66) Ensure that the contractor(s) comply fully with contractual obligations relating to care of the environment (both specified and legislated) and provide all reports and obtain all permits and permissions required in relation to spoil areas, borrow areas quarries and the like;

67) Keep and maintain daily records of labor, equipment and weather conditions on the site along with records of activity, progress and other events happening on the site and having relevance to the works;

68) Ensure the receipt of and maintain as permanent records of all warranties required under terms and conditions of the Contract Agreement for materials including their source and equipment accepted and incorporated in the project;

69) Undertake project performance monitoring and evaluation in accordance with the Project Framework and ADB's Project Performance Management System (PPMS) Handbook including the baseline data survey and the following annual survey and reporting up to project completion;

70) Advise PIU on need for effective liaison with local authorities, police, landowners, utility owners, complainants, the public and other organizations affected by the Works in order to minimize or avoid unnecessary delays or disputes;

71) Maintain consolidated project accounts and assist NHA for settlement of Audit Para’s and objections raised, prepare replies related to project, and provide the entire relevant documents/papers/letters etc. to support the replies-until 1 year after completion of works. The cost to be incurred may be built in the rates;

72) Develop training programs for EA staff and develop on the job training on innovative construction methods, project management and value engineering;

73) Based on the design data provided, prepare revised PC-1 for the project including economic analysis and Initial Environmental Examination (IEE) on Proforma of PC-1 prescribed by Planning Commission;

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74) Provide any other specialist services requested by PIU under conditions to be mutually agreedensure that the construction methods as proposed by the contractor for carrying out the works are satisfactory, inspection of contractor’s construction equipment; and safety of the works, property, personnel, and general public; the schedule of mitigation measures for adverse environmental impacts;

75) The Consultants will be responsible for the audit report, observation and will make the necessary replies, report, and presentation to defend the department interest;

76) For any laps in quality, quantity, or financial irregularity related to the performance of the Services, the Consultants will indemnify the Client.

D. Staffing

77) 67 persons-months International and 345.5 person-months National design review and construction supervision consultants are required to review the designs and assist in construction supervision / contract administration, financial management, safeguard compliance and implementation of the abovementioned projects. The consultancy services would be required for a period of 39 months including the defects notification period, which will be 12 months. There will be three “site supervision teams”, for three contract packages. The staffs for each package are expected to mobilize on the date of actual commencement of works by the contractors. Construction Supervision Team Leader of the Consultants is expected to be full time during construction and be mobilized to the Project Site at least two months in advance of the commencement of the works in order to assist PIU with activities leading up to mobilization of the Contractors. Consulting Services will be engaged using Full Technical Proposal (FTP) procedures based on quality and cost-based selection (QCBS) method following ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The provisions of ADB’s Anticorruption Policy will be included in all invitation documents and contracts for consultants. The tentative team composition is as below:

(i) Experts (International and National)

Input (Person S/No Expertise Positions Months) A. International Experts 1 Chief Resident Engineer/Team Leader 1 27 2 Senior Pavement Design Engineer 1 3 3 Senior Bridge/Structure Engineer 1 5 4 Senior Soils and Materials Engineer 1 3.5 5 Senior Hydrologist 1 3 6 Senior Contract Specialist 1 8 7 Senior Geotechnical Engineer 1 6.5 8 Senior Geometric Design Engineer 1 3 9 Senior Environmental Specialist 1 4

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Input (Person S/No Expertise Positions Months) 10 Road Safety Auditor 1 4 Sub-Total 10 67 B. National Experts Deputy Team Leader/ 1 1 39 Senior Resident Engineer 2 Resident Engineer 3 75 3 Assistant Resident Engineer (ARE) 3 54 4 Geometric Design Engineer 1 3 5 Pavement Design Engineer 1 4 6 Bridge/Structure Engineer 3 24.5 7 Soil/Material Engineer 3 54 8 Hydrologist 1 3 9 Senior Environmental Specialist 3 26 10 Procurement/Contract Specialist 3 36 11 Social Development/Resettlement Specialist 1 10 12 Road Safety Specialist 1 7 13 Geotechnical Engineer 1 10 Sub-Total 25 345.5

(ii) Support Staffs (Technical)

Professional Estimated S/No Title Experience person-months 1 Chief Quantity Surveyor [01 Position] 10 Years 39 2 Chief Surveyor [03 Position] 10 Years 24 3 Quantity Surveyors [3 Positions] 10 Years 63 4 Surveyors [06 Positions] 5 Years 120 5 Road Inspector [07 Positions] 5 Years 132 6 Structure Inspector [07 Positions] 5 Years 96 7 Material Inspector [07 Positions] 5 Years 132 8 Lab. Technician [14 Positions] 5 Years 264 9 Computer Operator (04 Nos) 5 Years 90 10 AutoCAD Operator (01 No) 5 Years 12 11 Administration Assistant (04 Nos) 5 Years 81 12 Trainee Engineer (06 Nos) – 90 13 Project Coordinator (01 No) 10 Years 18 Total 1,161

64 Appendix 2

INTERNATIONAL EXPERTS

1. Title: Chief Resident Engineer / Team Leader

Experience: 15 years international experience as Chief Resident Engineer and 10 years as Team Leader on major road projects

Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Transportation Engineering / Construction Management / Project Management or equivalent.

Responsibilities: Overall responsibility for the organization, conduct and delivery of consultancy services and reporting to NHA. The CRE / Team Leader will head the Consultants’ team and will work directly to manage the project and will maintain liaison with NHA.

Responsibilities of the CRE / Team Leader will include, but is not limited to the following:

• Assist the PIU in Project implementation. • Assume full responsibility for the consulting team and performance of services under the consultancy contract. • Ensure that the consulting team undertakes comprehensive review of the designs and specifications which were prepared by the design consultant. • Ensure that the consulting team undertakes comprehensive construction supervision and contract administration of the inescapable civil works. • Oversee the consultant’s activities ensuring compliance to details provided in the construction drawings and strict adherence to construction specifications. • Oversee and supervise construction of works in accordance with details provided in the construction drawings ensuring strict adherence to construction specifications. • Ensure preparation of detailed and quantitative progress reports to support the contractor’s requests for progress payments. • Keep the Employer informed of technical issues and progress of all works both by informal and formal meetings and correspondence and assist in any project issue which the Employer may require. • Participate in the Dispute Board meetings to explain and discuss issues raised by the Contractor/Employer or dispute board. • Ensure implementation of environment and social safeguards requirements. • Assist the Employer in preparing responses to audit objections and queries of the financiers or other Government Authorities. • Coordinate with all concerned Employer’s organizations on project issues. • At the end of the construction activities, guide and ensure that the team prepares a comprehensive Construction Completion Report inclusive of “as-built drawings” as appropriate.

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2. Title: Senior Pavement Design Engineer

Experience: 15 years of international experience or more in major road construction works with a focus on pavement engineering and materials testing. Relevant experience should include: (i) supervising the Contractor's compliance with material specifications and testing; (ii) providing input to the design team to source suitable materials; (iii) engineering design of flexible Asphaltic Concrete (AC) pavements, (iv) coordinating and supervising the work of field teams in supervising and certifying construction in accordance with contract conditions including acceptance standards of materials, approval of source supply, establishing QAJQC procedures, setting up laboratories, mix designs and testing procedures; (v) fluency in English; and (vi) regional experience in Central Asia

Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Transportation Engineering or equivalent

Responsibilities: He/she will be responsible for checking the pavement design and providing comments. Lead the design review of pavement works in the DED including proposed material specifications and sources and asphalt and concrete mix designs.

3. Title: Senior Bridge / Structure Engineer

Experience: 12 years international experience on structure / bridge engineering on major road projects. He shall demonstrate a working knowledge in: (i) the design and construction of bridges and other structures for road projects; (ii) various structural designs and documentations including the design of all required earthworks, retaining walls, drainage and any other required structures; and (iii) supervising the work of field teams in monitoring progress, assessing quality, and certifying construction in accordance with contract conditions.

Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Bridge Engineering or equivalent

Responsibilities: The Senior Bridge/Structure Engineer will perform duties under the guidance of the Team Leader. He/she will assist the Team during construction supervision of the project’s bridges and structures and assist in ensuring that the project is implemented in accordance with the required specifications and approved drawings. He/She will set up supervision systems, and train the consultant’s national staff in their use.

4. Title: Senior Soil / Material Engineer

Experience: 12 years international experience as Material Engineer on major road projects, preferably two years’ experience of asphalt concrete mix design in countries having similar climate condition and/or truck over loading problems like Pakistan.

66 Appendix 2

Qualification: Bachelor’s degree in Civil Engineering preferably Master(s) in Geo-Technical Engineering / Highway Engineering / Geology / Material Engineering / Pavement Engineering.

Responsibilities: Senior Soil/Material Engineer will perform duties under the guidance of the Team Leader. He/she will assist the Team during the design review and construction supervision of the Road, Bridges and structures and assist in ensuring that the subject project is implemented in accordance with the required specification and approved drawings. The Senior Soil/Material Engineer will set up quality control systems, testing procedures, preparation of JMF, train the national staff and ensure that the system is in place.

5. Title: Senior Hydrologist

Experience: 12 years international experience in hydrological design of roads and bridges. Minimum worked on 3 design projects.

Qualification: Bachelor’s degree in Civil Engineering Master(s) in Hydrology or equivalent

Responsibilities: Senior Hydrologist will perform their duties under the guidance of the Team Leader. Work in the survey and design team and will be responsible for collecting and assessing the hydrological data, finalizing the design discharges for the required drainages, cross drainages, sub surface drainages. Provide assistance to the design team in designing the appropriate and cost-effective design of drainage structures. Hydrologist shall collect relevant field data and estimate the design discharges for various drainages structure for the design purpose.

6. Title: Senior Contract Specialist

Experience: 15 years international experience as Contract Specialist on major road projects based on FIDIC form / conditions of contract, Experience and knowledge of ADB’s procurement procedures is essential. Proven credentials in contract administration, evaluating contractor’s claims and dispute resolution, preferable experience/track record of an arbitrator, mediator, adjudicator and/or dispute resolution adviser.

Qualification: Bachelor’s degree with a major in Civil Engineering, Law, Contracts, Purchasing, or Management – preferably MSc in Civil Engineering, Law, or Contracts / Procurement, or equivalent

Responsibilities: Responsible for assistance in contract administration of works contracts, taking timely contractual actions related to cost, time and quality controls and closure of the contracts, and in case of dispute its referral to the adjudication and arbitration in case of dispute.

He/she will be responsible for assisting the EA and Team Leader in all the activities pertaining to contract management, early warning of key contractual actions, schedule and document contract management meetings and evaluating/resolving contractor’s claims and contractual disputes.

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Responsibilities of the Senior Contract Specialist will include, but is not limited to the following: • Assist Employer and TL in coordinating contract management and planning activities for the work package with Engineering, Project Controls and Construction; • Assist to organize meetings for negotiating and resolving technical and contract completion issues; • Assist Employer and TL in effect the timely distribution of reports and pertinent commercial information to and from Contractors in accordance with agreed schedule; • Assist in schedule turnover meetings with Site Personnel, where required; • Assist to check timesheets for contract conformance (rates, backup and extensions); • Assist in review Contractors' invoices and prepare Progress Payment Certificates with Cost Control; • Assist in review Contractors' costs, forecasts and requests for extras; • Assist in review and issue for approval and post Substantial Performance documents; • Participate in contract cost review meetings and regular Project progress and assist with preparation of monthly contracts and Project progress reports. • Assist in procurement and contracts administration and assistance actions such as contracts, solicitations, modifications, delivery schedules, plans and coordination with relevant departments; • Assist in preparation of procurement and contract documents; • Assists in the review of procedural aspects of contract actions. Participates in contracts administration sufficient to ensure contract terms and conditions are met and that the contractor delivers the required services in a timely manner to achieve the objectives of the project; • Assists in the termination of contracts for the convenience of the Project by the contractor. The incumbent is responsible for the preparation of all documentation necessary to support and defend termination decisions. • Recommends actions when the contractor is not in compliance with contract provisions; • Coordinate with contractors to determine and recommend alternative courses of action, such as extension of delivery schedule; • Conducts contract reviews to evaluate contractor’s performance, and monitors contractor activity to assure compliance; • Monitors such matters as payments, claims, and contractual changes to ensure requirements of the contract are met; • Reviews completed contract file to ensure routine administrative matters are resolved or completed; and • Support to TL in drafting, for submittal to ADB through Employer, any requests for consent to extension of time / variation orders.

7. Title: Senior Geotechnical Engineer

Experience: 15 years international experience as Geotechnical and/or Geotechnical reviewer of roads/structures with proven credentials in Bridge Designing or related to foundation investigation and design of major structures and embankments.

Qualification: Bachelor’s degree in Civil Engineering or Geological Engineering with Master(s) in Geotech Engineering or Foundation Engineering or equivalent

68 Appendix 2

Responsibilities: Responsible for geotechnical investigations and subsurface explorations for road and structures, stipulate material testing procedures and specifications, identify sources of materials, quarry sites and borrow areas. Geotechnical Engineer will review the design and if required during construction any modification and change in design, construction method, alternate technology of construction and provide oversight during the consultancy service.

8. Title: Senior Geometric Design Engineer

Experience: 15 years international experience in roads and bridges design experience, strong background in access management and traffic control systems is highly desirable.

Qualification: Bachelor’s degree in civil engineering preferably Master(s) in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering or equivalent.

Responsibilities: The Senior Geometric Design Engineer will perform duties under the guidance of the Team Leader. He/she will assist the Team during the design review and construction supervision of the project and will verify the detailed design and provide comments. Verify, recommend and provide design plans for road furniture and road safety appliances.

9. Title: Senior Environmental Specialist

Experience: 15 years international experience as Environment Specialist supervising and monitoring environmental management plans on donor financed road projects and familiarity with the ADB’s safeguard policies.

Qualification: Bachelor’s degree in Environmental Engineering - preferably Master(s) in Environmental Sciences or equivalent.

Responsibilities: Responsible for preparing Environmental monitoring check list, reviewing and endorsement of site specific Environmental Management Plan (SSEMP), review of Bi-Environmental monitoring reports, prepare corrective action place in case of noncompliance. The Senior Environmentalist will set up environmental management and monitoring system, train the national staff and ensure that the EMS is in place.

10. Title: Road Safety Auditor

Experience: 15 years relevant international experience with proven credential as safety auditor on major road projects

Qualification: Bachelor degree or preferably Master(s) in Civil Engineering/Transportation Engineering/Highway Engineering/Traffic Engineering and a certified safety auditor or equivalent and preferable a certified safety auditor.

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Responsibilities: The Road Safety Auditor is part of the services team and will be providing all necessary assistance to the construction supervision team with respect to all safety, health and environmental issues. He/she will assist to the TL in review and approve the safety plans of the contractor and he will monitor the safety of the works and the safety of the traffic diversions and ensure compliance with the regulations. Road Safety Auditor will identify hazardous location(s) and conditions, conduct a highway safety study, collect and analyses preliminary data, identify and collect field data, select and conduct appropriate detailed studies, evaluate study results, determine safety and operational deficiencies, identify potential safety and operational improvement and to select appropriate improvements. The Road Safety Auditor will set up the road safety supervision systems, train the national staff and ensure that the system is in place.

NATIONAL EXPERTS

1. Title: Deputy Team Leader/SRE

Experience: 15 years experience as Deputy Team Leader / SRE on major road projects in contract management, processing of claims and implementation of road projects.

Qualification: Bachelor’s degree in Civil Engineering - preferably Master(s) in Civil Engineering / Highway Engineering / Transportation Engineering / Construction Management / Project Management or equivalent.

Responsibilities: Responsible for construction supervision and ensuring that the project is implemented in accordance with the required specifications and approved drawings. Assist Team Leader for issues relating to Highway Geometry etc. when required.

Responsibilities of the Deputy Team Leader/ SRE will include, but are not limited to the following:

• Act as the Team Leader during the absence of Team Leader; • Assist the Team leader in ensuring that the consulting team undertakes comprehensive review of designs and specifications and carries out construction supervision and contract administration of the civil works for the Project assuming the role of “the Engineer” and undertake all tasks as defined under FIDIC General Conditions of Contract for Construction; • Assist the team leader in overseeing the consultants activities ensuring compliance to detail provided in the construction drawings and strict adherence to construction specifications; • Assist the Team Leader in overseeing quality control methodology put in place, confirming its adequacy and ensuring that its employment is satisfactorily carried out; • Render necessary advice and assist the Team leader in contract administration and procurement issues/assignments/contractual claims; • Assist the Team Leader in resolving any contractual issues; • Determine extension of time for completion and other claims in accordance with the conditions of contract in consultation with the CRE / Team Leader; • Provide assistance to the Employer in dispute resolution as per provisions in the conditions of contract; • Assist the Team Leader in keeping the Employer informed of contractual and claims issues by direct contacts and through discussions or correspondence;

70 Appendix 2

• Assist the Team Leader/Chief Engineer in holding meetings with the Contractor on contract and claims issues; and • Assist the team leader in preparing a comprehensive Project Completion Report (PCR) and any other duty/ assignment the Team Leader may entrust.

2. Title: Resident Engineer

Experience: 12 years’ experience as Resident Engineer on major road projects.

Qualification:

Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering / Construction Management / Project Management or equivalent.

Responsibilities:

Responsible for construction supervision and ensuring that the project is implemented in accordance with the applicable specifications, approved drawings, and timeframe. Responsible for construction supervision and reviewing and approving contractors’ bills. Supervise the work of Assistant Resident Engineers and rest of construction supervision teams and will manage the construction milestones and quality control of works. Provide assistance to the Team Leader in overall management, monitoring and reporting and will be responsible for day-to-day management of works. The construction works will be executed in accordance with the Conditions of Contract contained in ADB’s standard documents as appropriate and in accordance with Conditions of Contract.

Responsibilities of RE will include but not limited to the following:

• The Resident Engineer will be responsible for quality, cost, scope, time, safety, and environmental control of the subprojects; • Review and assist in the approval of contractor’s work program, method statements, material sources, preparing and issuing reports as defined subsequently, approving and/or issuing working drawings, approving the setting out of the works, and instructing the contractor; • Certifying work volume and recommending interim certificates for progress payments, maintaining consolidated project accounts, and preparation of financial statements, ensuring minimum disruption/damage to the environment by approval of contractors’ work statement/methodology; • Monitoring the impact of construction works on the environment and local settlements and providing information to the PMC, NHA department, and the ADB on the monthly progress reports; • Preparing and issuing reports as defined subsequently; • Approving and/or issuing working drawings, approving the setting out of the works, and instructing the contractor; • Taking measurements and keep measurement records; • Maintaining records, correspondence, and diaries; • Certifying work volume and recommending interim certificates for progress payments; • Maintaining consolidated project accounts, and preparing of financial statements and withdrawal applications for submission to the ADB;

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• Certifying completion of part or all of the works; • Inspecting the works at appropriate intervals during the defects notification period and issuing the defects notification certificate; • Processing the contractor’s possible claims; • Ensuring minimum disruption/damage to the environment by approval of contractors’ work statement/methodology, including monitoring the impact of construction works on the environment and local settlements and providing information to NHA and the ADB on the monthly progress reports; • Providing the employer with complete records and reports, and approving the contractors’ as - built drawings for the works; • Inspecting the works at appropriate intervals during the defects notification period and issuing the defects notification certificate; • Compile a Project completion report providing details of Project implementation, problems encountered, and solutions adopted, and detailing and explaining any variation in Project costs and implementation schedules from the original estimates.

3. Title: Assistant Resident Engineer

Experience: 12 years experience as Assistant Resident Engineer on Highways or major road projects.

Qualification:

Responsibilities: ARE will be responsible for construction supervision of the road and ensuring that the subject project is implemented in accordance with the required specification and approved drawings.

He will be responsible for construction supervision and review and approval of contractor’s bills. ARE will assist the Resident Engineer (RE) in the performance of his tasks. The main responsibilities of the position will include but not limited to the following:

• Inspect the site and collect the condition data for the design review and necessary changes if any; • Assist the RE in preparation of technical details such as specifications and estimates; • Provide details about existing pavement, damages and assessment; • Assist the RE and recommend approval of contractor’s work program, method statements, material sources, etc; • Assist the RE in preparing and issuing reports as defined subsequently; • Review and recommend approval and/or issuing working drawings, approval of the setting out of the works, and instruction to the contractor; • Taking measurements and keep measurement records; • Maintaining records, correspondence, and diaries; • Certifying work volume and recommending interim certificates for progress payments; • Assist in maintaining consolidated project accounts, and preparing of financial statements and withdrawal applications for submission to the ADB; • Provide feedback to the RE on the certification of completion of part or all of the works;

72 Appendix 2

• Processing the contractor’s possible claims; • Ensuring minimum disruption/damage to the environment by approval of contractors’ work statement/methodology, including monitoring the impact of construction works on the environment and local settlements and providing information to W&S Sindh and the ADB on the monthly progress reports; • Providing the employer with complete records and reports, and recommend the contractors’ as - built drawings for the works; • Assist in the compilation of a Project completion report data, providing details of Project implementation, problems encountered, and solutions adopted, and detailing and explaining any variation in Project costs and implementation schedules from the original estimates.

4. Title: Geometric Design Engineer

Experience: 10 years in roads and bridges design experience, strong background in access management and traffic control systems is highly desirable.

Qualification: Bachelor’s degree in Civil Engineering preferably Master(s) in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering or equivalent.

Responsibilities: Generally, role of a geometric road design engineer is to decide the placement of the road with respect to surrounding physical environs and give a shape to its configuration with due care for mobility, access management, traffic control and best possible road safety mechanism embedded in design process. More specifically geometric design engineer is required but limited to the following; • Agree upon the category of road to be developed to make sure relevant design standards are applied and relevant guidelines are followed during the design process. It could be any category ranging from motorway to rural access roads or mountainous roads in rural settings and urban freeways, primary roads, secondary roads, laterals and access roads in case of an urban situation; • To decide and fix the route alignment as per project requirements; • Firm up connectivity requirements and linkages; • Liaise with survey entity to get the topographic details of the route alignment with appropriate details; • Assess travel demand for the project road alignment; • Work out road’s right of way requirement and spacing for various road components including formation widths, carriageways, lanes, shoulders, medians/horizontal barriers, roadside facilities like spacing for NMT, drainage channels, green verges, laybys and other roadside facilities etc. Decide upon relevant design standards for cross falls, camber and super elevations; • Design both horizontal and vertical profile alignments as per given speed and other geometric design criteria to bring upon most direct, cost effective and safe route alignment; • Locate and firm up position of road crossings and crossings for water channels and cross drainage. Collaborate with relevant engineering specialists for structure design and positioning of utilities and other crossings; • Provide design plans for various road segments including links (sections between road crossings) and road crossings. In case of motorways/ expressways only grade separated

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crossings and interchanges are involved whereas in case of lower order roads multiple choices are available requiring option analysis for selection of relevant form of road crossings; • Both horizontal design plans and vertical alignments are required to run simultaneously; • Collaborate with pavement design engineer during production of design plans; • Design engineers are encouraged to apply any relevant software available for generation of design plans; • Provide design plans for road furniture and road safety appliances including traffic control devices, signage and road marking; • In case of signalized crossings provide separate design plans for installation of signal configuration and relevant plans for signal and other relevant ITS operations; • Generate typical and standardized design details of various elements as appropriate; • Produce the design folder in hard and soft formats; and • Be responsible for and respond to third party road safety audit recommendations.

5. Title: Pavement Design Engineer

Experience: 12 years of experience or more in major road construction works with a focus on pavement engineering and materials testing. Relevant experience should include: (i) supervising the Contractor's compliance with material specifications and testing; (ii) providing input to the design team to source suitable materials; (iii) engineering design of flexible Asphaltic Concrete (AC) pavements, (iv) coordinating and supervising the work of field teams in supervising and certifying construction in accordance with contract conditions including acceptance standards of materials, approval of source supply, establishing QAJQC procedures, setting up laboratories, mix designs and testing procedures.

Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Transportation Engineering or equivalent

Responsibilities: He/she will be responsible for designing especially in pavement design, designs for road features and road safety/traffic control features, drainage designs, rehabilitation and repair plan, traffic plans and amenities including detailed drawings and specifications.

Responsible for the Pavement Design Engineer will include, but is not limited to the following: • Coordination of design review and construction supervision of all Project pavements, including the management of the Materials/Pavement engineering team in coordination with the Team Leader and the other senior officials of the Consultant Team; • Lead the design review of pavement works in the DED including proposed material specifications and sources and asphalt and concrete mix designs; • Review and approve the Contractor's proposed geotechnical investigations for pavements and pavement materials; • Liaise with the Bridge/Structural Engineer on the geotechnical requirements for bridge design; • Design review and construction supervision of all Project pavements; • Design review of pavement works, proposed material specifications and sources and asphalt and concrete mix designs; • Review the Contractor's proposed geotechnical investigations for pavements and pavement materials; • Review the construction schedule for all pavement works.

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6. Title: Bridge / Structure Engineer

Experience: 12 years experience as Structure / Bridge Engineer preferably on major road / bridge projects

Qualification: Bachelor’s degree in Civil Engineering preferably Master(s) in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering or equivalent.

Responsibilities: He/she will be responsible for construction supervision and of structural components of the road and ensuring that the subject project is implemented in accordance with the required specification and approved drawings. He will be responsible for construction supervision and review and approval of contractor’s bills. He will assist the Resident Engineer (RE) in the performance of his tasks. He will be responsible for designing especially on cost effective, multi-hazard resistant design, design the structural elements of roads component and bridges, including detailed structural drawings and specifications. The main responsibilities of the position will include but not limited to the following:

• Inspect the site and collect the condition data for the design review and necessary changes if any; • Assist in preparation of technical details such as specifications and estimates; • Provide details about existing structures, damages and assessment; • Assist and recommend approval of contractor’s work program, method statements, material sources, etc.; • Assist in preparing and issuing reports as defined subsequently; • Review and recommend approval and/or issuing working drawings, approval of the setting out of the works, and instruction to the contractor; • Taking measurements and keep measurement records; • Maintaining records, correspondence, and diaries; • Certifying work volume and recommending interim certificates for progress payments; • Assist in maintaining consolidated project accounts, and preparing of financial statements and withdrawal applications for submission to the ADB; • Provide feedback on the certification of completion of part or all of the works; • Inspecting the works at appropriate intervals during the defects liability period and issuing the defects liability certificate; • Processing the contractor’s possible claims; • Ensuring minimum disruption/damage to the environment by approval of contractors’ work statement/methodology, including monitoring the impact of construction works on the environment and local settlements and providing information to NHA and the ADB on the monthly progress reports; • Providing the employer with complete records and reports, and recommend the contractors’ as -built drawings for the works; and • Assist in the compilation of a Project completion report data, providing details of Project implementation, problems encountered, and solutions adopted, and detailing and explaining any variation in Project costs and implementation schedules from the original estimate.

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7. Title: Soil / Material Engineer

Experience: 10 years as Material Engineer on five major road projects preferably with experience of Asphalt concrete mix design in countries having similar climate and/or truck over loading problems like Pakistan

Qualification: Bachelor’s degree in Civil Engineering or Master(s) in Engineering Geology or equivalent

Responsibilities: He/she will assist and will be responsible for quality of materials used in construction by performing field and laboratory tests and certifying their acceptance based on recommended specifications for the material, will also identify the sources of material and query sites.

Main responsibilities of the position will include but not limited to the following: • Stipulate Material Testing Procedures and Specifications; • Identify sources of materials, quarry sites and borrow areas; • Confirm the suitability and availability of material in the borrow pits and quarries for pavement; • If required, identify and evaluate additional sources of materials; • Undertake field and laboratory testing of the materials to determine their suitability for various components of the work; • Prepare mass haul diagram for haulage purposes giving quarry charts indicating the location of selected borrow areas, quarries and the respective estimated quantities; • Make suitable recommendations regarding making good the borrow and quarry areas after the exploitation of materials for construction of works; • Be responsible for Material Testing and specification and certification of material quality; • Preparation and testing of concrete mixes of different design mix grades using suitable materials (binders, aggregates, sand filler etc.) as identified during Material Investigation to conform to specification applicable in Pakistan; and • Preparation of JMF

8. Title: Hydrologist

Experience: 10 years of experience in hydrological design of roads and bridges.

Qualification: Bachelor’s degree in Civil Engineering Master(s) in Hydrology or equivalent

Responsibilities: Responsibilities of the Hydrologist will include, but is not limited to the following: • Hydrologist will perform their duties under the guidance of the Senior Hydrologist and Team Leader. • Work in the survey and design team and will be responsible for collecting and assessing the hydrological data, finalizing the design discharges for the required drainages, cross drainages, sub surface drainages. • Provide assistance to the design team in designing the appropriate and cost-effective design of drainage structures.

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• Hydrologist shall collect relevant field data and estimate the design discharges for various drainages structure for the design purpose.

9. Title: Environmental Specialist

Experience: 12 years’ experience as Environment Specialist supervising and monitoring environmental management plans on donor financed road projects and familiarity with the ADB’s safeguard policies. Specific experience in a similar position on road projects in accordance with GoP and ADB’s Environmental Guidelines will be preferred

Qualification: Bachelor’s degree in Environmental Engineering - preferably Master(s) in Environmental Sciences or equivalent

Responsibilities: Responsible for monitoring the implementation of EMPs and SSEMPs, course correction, consultations, due diligence and disclosures.

Responsibilities of the Environmental Specialist will include but not limited to the following:

• Assist Senior Environmental Specialist and Team Leader in reviewing the site specific environmental management plan (SSEMP) for each sub-project and ensure its effective implementation; • Assist Senior Environmental Specialist in preparing and executing required appropriate actions to mitigate any negative environmental impacts associated with construction activities in collaboration with PIU and all concerned stakeholders; • Ensure that any environmental assessments fully comply with ADB’s SPS (2009) and ensure that all required mitigation measures are identified and acceptable. • Besides assisting in finalizing the biannual environmental monitoring report, assist the PIU in finalization of environmental part of quarterly progress report, annual progress report and any specific report asked by the PIU. • Provide support to PIU in conducting public consultation throughout the duration of the project. • Provide support to PIU in resolving environment related complaints through the GRM.

10. Title: Procurement / Contract Specialist

Experience: 12 years’ experience as Procurement and Contract Specialist on major road projects based on FIDIC conditions of contract, Experience and knowledge of ADB’s procurement procedures is essential. Proven credentials in contract administration, evaluating contractor’s claims and dispute resolution, preferable experience/track record of an arbitrator, mediator, adjudicator and/or dispute resolution adviser.

Qualification: Bachelor’s degree with a major in Civil Engineering, law, contracts, purchasing, or management – preferably Master(s) in Civil Engineering, law, contracts / procurement, or equivalent.

Responsibilities:

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Responsible for assistance in procurement and contract administration, taking timely contractual actions related to cost, time and quality controls and closure of the contracts, and in case of dispute its referral to the adjudication and arbitration in case of dispute.

He/she will be responsible for assisting in all the activities pertaining to procurement and contract administration, early warning of key contractual actions, schedule and document contract management meetings and evaluating/resolving contractor’s claims and contractual disputes.

Responsibilities of the Procurement and Contract Specialist will include, but is not limited to the following: • Assist in coordinating procurement and contract administration and planning activities for the work package with Engineering, Project Controls and Construction; • Assist to organize meetings for negotiating and resolving technical and contract completion issues; • Assist in effect the timely distribution of reports and pertinent commercial information to and from Contractors in accordance with agreed schedule; • Assist in schedule turnover meetings with Site Personnel, where required; • Assist to check timesheets for contract conformance (rates, backup and extensions); • Assist in review Contractors' invoices and prepare Progress Payment Certificates with Cost Control; • Assist in review Contractors' costs, forecasts and requests for extras; • Assist in review and issue for approval and post Substantial Performance documents; • Participate in contract cost review meetings and regular Project progress and assist with preparation of monthly contracts and Project progress reports. • Assist in procurement and contracts administration and assistance actions such as contracts, solicitations, modifications, delivery schedules, plans and coordination with relevant departments; • Assist in preparation of procurement and contract documents; • Assists in the review of procedural aspects of contract actions. Participates in contracts administration sufficient to ensure contract terms and conditions are met and that the contractor delivers the required services in a timely manner to achieve the objectives of the project; • Assists in the termination of contracts for the convenience of the Project by the contractor. The incumbent is responsible for the preparation of all documentation necessary to support and defend termination decisions. • Recommends actions when the contractor is not in compliance with contract provisions; • Coordinate with contractors to determine and recommend alternative courses of action, such as extension of delivery schedule; • Conducts contract reviews to evaluate contractor’s performance, and monitors contractor activity to assure compliance; • Monitors such matters as payments, claims, and contractual changes to insure requirements of the contract are met; • Reviews completed contract file to ensure routine administrative matters are resolved or completed; and • Support to TL in drafting, for submittal to ADB through Employer, any requests for consent to extension of time / variation orders.

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11. Title: Social Development / Resettlement Specialist

Experience: 12 years’ experience in planning preparation, implementation and monitoring of Social Safeguards (Involuntary Resettlement and Indigenous people) as Resettlement Specialist on IFI financed development projects and familiarity with ADB’s Social Safeguard Policies.

Qualification: Master(s) in Social sciences or relevant field

Responsibilities: He/she will be responsible to support PIU in NHA to ensure compliance to social safeguards (Involuntary Resettlement Indigenous people) while planning, preparation, implementation and monitoring of resettlement plans for the sub-projects as required under Safeguard Policy Statement (2009). During event he/she will facilitate NHA in screen of subprojects for IR/IP requirements, identify, assess and update impact inventory linked to the DPs based on design review; conduct consultations with project affected/displaced persons and update the resettlement plans as per marked construction limits; establish updated LAR database and grievance redress system for social safeguards. Monitor day to day RP implementation and consolidate RP implementation progress in monthly progress reports, facilitate NHA in recording and redress of grievances of project affected people and prepare Social Monitoring (internal monitoring) reports biannually or as provided in ADB cleared LARPs and project documents for ADB’s review as well as final report on social safeguards implementation at completion of project.

Responsibilities will include but not limited to the following:

• Screen subprojects for involuntary resettlement impacts to determine IR/IP impact significance and eligibility of the subproject for social safeguards due diligence and preparation/updating of LARPs/IPPs under the project; • For subprojects with involuntary resettlement impacts, prepare/update Resettlement Plans in accordance with provisions outlined the Resettlement Framework for the MFF; • Coordinate with design review team during review of detailed design to discuss and explore design measure/options to avoid/minimize the resettlement impacts of subprojects and ensure involuntary resettlement impacts are minimized, if not avoided; • Based on detailed design review, prepare social safeguards due diligence reports confirming sub-projects/project road sections with and without LAR impacts including linear plans with clearly marked LAR and non-LAR sections and assist PIU and the Engineer in notifying the LAR sections to contractors that are not open for construction • Assist and supervise in conducting detailed measurement survey of impacted assets, updating of the impact inventory, census of DPs and shall prepare updated Land Acquisition and Resettlement Plans for ADB’s review and clearance in accordance with provisions outlined in the Resettlement Framework for the MFF; • Assist in organizing and conducting meaningful consultations with affected/displaced people to ensure the concerns raised and addressed adequately addressed during design review, the Land Acquisition Resettlement Plans have been fully disclosed and the DPs are informed on the eligibility criteria, entitlements, compensation payment mechanism and project based grievance redress system; • Assist PIU and field staff to maintain updated LAR database and in implementation of Resettlement Plans in the subproject areas before physical or economical displacement and subsequent commencement of works;

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• Assist PIU to establish and operationalize the project based grievance redress system and coordinate (on regular basis) with the grievance redress committee and assist the GRC in delivery of its functions including but not limited to recording, review and tracking of progress on complaints, information dissemination and consultations with the complainants during complaints resolution process. • Assist PIU in review of LAR issues that may emerge during execution of civil works, prepare and implement corrective actions/measure consistent with project safeguards requirements as outlined in the LARF and LARPs; • Track and monitor day to day LAR implementation progress and make adjustments in implementation schedule to achieve the targeted timelines and provide safeguards related input in project implementation monthly progress reports. • Develop and conduct training sessions for PIU staff involved in project LAR management to improve their understanding on the ADB’s safeguards requirements and ensure proper understanding and implementation of Resettlement Plans; • Monitor implementation of Resettlement Plans, consolidate LARP implementation progress and prepare quality social monitoring reports periodically (biannual or as provided in the ADB cleared LARPs and other project documents) and share with ADB for review, clearance and disclosure.

12. Title: Road Safety Specialist

Experience: 12 years relevant experience with proven credential as safety auditor on major road projects

Qualification: Bachelor degree preferably Master(s) in Civil Engineering / Transportation Engineering / Highway Engineering / Traffic Engineering and a certified safety auditor or equivalent

Responsibilities: The Road Safety Specialist will be providing all necessary assistance to the construction supervision team with respect to all safety, health and environmental issues. He will assist in review and approve the safety plans of the contractor and he will monitor the safety of the works and the safety of the traffic diversions and ensure compliance with the regulations.

Road Safety Specialist will also identify hazardous location(s) and conditions, conduct a highway safety study, collect and analyses preliminary data, identify and collect field data, select and conduct appropriate detailed studies, evaluate study results, determine safety and operational deficiencies, identify potential safety and operational improvement and to select appropriate improvements. He / She will also responsible to prepare the road safety report of the design.

13. Title: Geotechnical Engineer Experience: 10 years experience as Geotechnical and/or Geotechnical reviewer of roads/structures with proven credentials in Bridge Designing or related to foundation investigation and design of major structures and embankments

Qualification: B.Sc. Civil Engineering or Geological Engineering with Master’s degree in Geotech Engineering or Foundation Engineering or equivalent

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Geotechnical Engineer will review the design and if required during construction any modification and change in design, construction method, alternate technology of construction and provide oversight during the consultancy service.

Responsibilities of the Geo-tech Engineer will include but are not limited to the following:

• Review all relevant technical documents; • Carry out (organize and oversee) comprehensive review of foundation conditions at each structure ensuring long-term integrity of the project components; • Identify any remedial foundation stabilization work to be included in the work package for construction of road works; • During the construction phase, investigate and evaluate any unexpected foundation conditions encountered and recommend alternative treatment as appropriate.

E. Reporting & Documents Requirements

10. Reporting Requirements: The Consultant will prepare and submit to PIU five copies of each of the under mentioned reports. The format of these reports shall be mutually agreed with the PIU. One copy shall be sent directly to the Asian Development Bank together with softcopy:

(i) Inception Report: The Consultant will submit an Inception Report at within one Month after mobilization. This will contain full detail of the consultant's supervision, & contract administration methodology and staff plan with supporting CVs of professional staff and projected monthly billing.

(ii) Design Review Report. The consultant will submit a detailed Design Review Report, under the guidance of team leader within three months, indicating any deficiencies / improvements required in the detailed design prepared by the Design consultant. The design review will ensure that the construction drawings carry all details necessary for executing the job and shall not result in claims of non BOQ items / additional associated costs.

(iii) Monthly Contract Administration Reports: The Consultant will, no later than the 10th of each month, prepare a narrative progress report summarizing:

a. Construction progress during the month and cumulative to date for each individual contract drawing specific attention to any major causes of delay (administrative, technical or financial) with details of remedial action taken or recommended to the Employer.

b. A comparison of actual and forecast expenditure both during the month and cumulative to date for each individual contract, and a record of the status of payment of the Contractors' monthly invoices, of all claims for cost or time extensions, and of actions required of PIU to permit unconstrained works implementation. The Consultant will also advise on the final estimated cost for

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each individual contract and draw attention to any major changes in the project budget including details of remedial action taken or recommended to the Employer.

c. Brief on all correspondence exchanged with the contractors particularly relating to contractual clauses, with financial and time implications.

d. Technical appreciation of any design or quality control problems for each individual contract including details of remedial action taken or recommended to the Employer.

e. Status of compliance with the Environmental & Resettlement Plans.

(iv) Annual Management Information Report at the end of each Financial Year: The Consultant will prepare a comprehensive report summarizing all activities under the services at the end of each Financial Year, and also at other times when considered warranted by either the Consultant or PIU because of delay of the construction works or because of the occurrence of technical or contractual difficulties. Such reports shall summarize not only activities of the Project Engineer/ Manager but also the progress of the Contracts including all contract variations and change orders, the status of the Contractor claims, and brief descriptions of the technical and contractual problems being encountered and other relevant information for each of the ongoing contracts.

(v) Resettlement Monitoring Reports. A quarterly report highlighting the progress on implementation of resettlement, documenting all activities including formal & informal consultation, gender issues, socio economic aspects, child labor, drug trafficking, hygiene, & safety and other social aspects

(vi) Technical Reports: The Consultant will produce as necessary technical/ due diligence reports and position papers dealing with project matters during implementation.

(vii) Interim Contract Completion Reports: The Consultant will prepare completion report for each contract within 30 days of issuance of Taking-over Certificate/Certification of Completion. This report shall summarize the implementation and financial history of the project. The defects list provided to the contractor and all outstanding claims pending resolution.

(viii) Final Project Completion Report: The Consultant will prepare a comprehensive final Completion Report within 90 days after Issuance of the Taking Over Certificate of the last civil works contract. The Consultant will prepare a comprehensive final Completion Report for the project including each of the contracts and shall summarize the method of construction, as built record showing the location and details of all works carried out, all defects and certification of the satisfactory correction of such defects for each of the construction contracts, the construction supervision performed, and recommendations for future projects of similar nature to be undertaken by PIU. A safeguards implementation completion (final) report will also be included as appendix to the final project completion report.

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(ix) Project Documentary Report. The Consultant has to make documentary of all major activities during constructions as well as that of completed project sections to be submitted towards the end of the project. These should also pertain; a) Laying and compaction of various pavement layers b) Operation of Asphalt and concrete Plants c) Quarry sites and laboratory activities d) Road after completion showing road furniture e) Various important stages in construction of structures f) Any other major activity involved requiring specific mention

(x) Roughness Survey Report. The roughness surveys will be carried out at substantial completion in coordination with NHA, before the end of the defect liability period. The consultant is required to submit his findings along with data in this report.

(xi) Revised PC-1. The Consultant shall prepare the revised PC-1 of the project, before completion of the project, if required by incorporating all changes in the scope of work and, prepare completion report (PC-IV), at the completion of the project.

11. Documents & Manuals Required. The consultants will prepare following documents to be approved by the Employer for efficient contract administration & construction supervision.

a. Contract Administration Manual b. Quality Control & assurance manual c. Laboratory Manual d. Environmental Monitoring Checklist e. Safeguard Monitoring Check list

F. Employer’s Input and Counterpart Personnel

(i) Services, facilities and property to be made available to the Consultant by the Employer: Design Reports, Drawings and related data for the sub-projects will be shared with the consultants.

(ii) Professional and support counterpart personnel to be assigned by the Employer to the Consultant’s team: The Employer shall establish a functional Project Management Unit for support and liaison with the Consultants.

G. Employer will provide the following inputs, project data and reports to facilitate preparation of the Proposals: N/A

H. Miscellaneous

(i) Employer's Staff: The Employer has nominated a Program Implementation Coordinating/ Steering Committee to provide guidance and oversight to the Program management Office & Project Implementation Unit. The PIU has been established under a General Manager, assisted by Project Director and land acquisition Staff and will be located in the field.

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(ii) Facilities: Facilities for the Engineer and his staff: The Construction Contractor shall provide, operate and maintain the following facilities for the exclusive use of the Consultants:

a. Laboratory and Testing Equipment b. Site Office and Residential Accommodation (adequately furnished) c. Site Transport d. Survey Equipment

(iii) The Consultants are encouraged to familiarize with Construction Work before submitting their proposals. Draft sample documents regarding EMP, Resettlement, and Environment as per the instruction of the Client.

12. Security for the Engineer’s representative and his staff. The GoP shall provide security for the Engineer’s representative and his staff.

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Terms of Reference for the Design Review and Construction Supervision Consultant (Projects 2 and 3)

1. Background:

1. The CAREC road network corridor 5 & 6 will connect Pakistan up North to the People’s Republic of China and West through Afghanistan respectively. Asian Development Bank lately designated N-55 section between Peshawar to DI Khan as an important CAREC Link other than Corridor 5 & 6.

2. The N-55 from Peshawar to Hyderabad is 1,264 km in length. On the right bank of river Indus, it is the shortest north-south route between Peshawar and Karachi. Government of Pakistan, realizing its importance, is already working on the Improvement and Dualization of this Road in various sections. In continuation the following section of N-55 are being undertaken for improvement and Dualization. Detail given as under:

Road Section Length (km) Completion Period Indus Highway (N-55) Additional 36 Months Carriageway (Shikarpur-Rajanpur 221.95 section) (PKG-1) Construction of Rajanpur-DG Khan 24 Months Section as Four-Lane Highway of N-55 121.5 (PKG-2) Dualization and Rehabilitation DG Khan- 36 Months 208 DI Khan of N-55 (PKG-3) Total 551.65

3. These road sections are further divided into sub-sections given as under: Package Road Sub-Sections Length (Km) no. Package-1 Shikarpur- Section-I 62.42 Rajanpur Shikarpur-Kandhkot Section Section Section-II 58.78 Kandhkot-Kashmore Section Section-III 50.30 Kashmore-Rojhan Section Section-IV 50.45 Rojhan-Rajanpur Section Total 221.95 Package-2 Rajanpur-DG Section-I 57.5 Khan Section Rajanpur-Jampur Section Section-II 64.0 Jampur-DG Khan Section Total 121.5 Package-3 DG-Khan-DI Section-I 55.0 Khan Section DG Khan-Shahdan Lund Section Section-II 56.7

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Package Road Sub-Sections Length (Km) no. Shahdan Lund -Tibi Qaisrani Section Section-III 48 Tibi Qaisrani -Ramak Section Section-IV 48.5 Ramak -DI Khan Section Total 208.2

4. The National Highway Authority (NHA) will be the Executing Agency and the Project Implementation Unit (PIU) under NHA will be the Implementation Agency which will be established with the General Manager “GM” (Employer’s representative) as the head. NHA requires the services of Design Review and Construction Supervision Consultants to carry out design review, construction supervision & contract administration, implementation & monitoring of Environmental Management plans where required.

5. In undertaking the design review of the project, the consultant is to take into account that the procurement of the project's civil works will be proceeding in parallel with this consultant selection process, with the objective that the consultant's and the civil works contracts can be signed at the same time. Accordingly, the consultant's review of the designs must reflect the possible contractual impacts arising from recommending substantial changes to the designs, for contracts that would have already been procured. Where, in the consultant's opinion, such changes are essential, its recommendations to the client must reflect the possible risks in terms of contractual claims, delays, or other impacts.

2. Brief Description of Project:

6. Brief description of project roads is given below:

Road Section Shikarpur-Rajanpur Rajanpur-DG Khan DG Khan-DI Khan Present Fair to Poor Fair to Poor Fair to Poor Condition: Functional since 1985 Functional since 1985 Functional since 1985 Existing 7.3-meter Existing 7.3-meter Existing 7.3-meter carriageway (two Lane) carriageway (two lane) carriageway (two lane) with 3.0 meter treated / with 3.0 meter earthen with 3.0 meter earthen untreated shoulders on shoulders on both sides. shoulders on both sides. both sides. Proposed Proposed 7.3-meter Proposed 7.3-meter Proposed 7.3-meter Improvement: (additional carriageway) (additional carriageway) (additional carriageway) with 1.0-meter inner with 1.0-meter inner with 1.0-meter inner treated shoulder and treated shoulder and treated shoulder and 3.0-meter outer earthen 3.0-meter outer earthen 3.0-meter outer earthen shoulder. shoulder. shoulder. Road National Highway Classification: Alignment: Plain / Flat Plain / Flat Plain / Flat Geo-graphical Terrain: Level to Rolling Terrain: Level to Rolling Terrain: Level to Rolling Features:

86 Appendix 2

Road Section Shikarpur-Rajanpur Rajanpur-DG Khan DG Khan-DI Khan Climate: Dessert. The annual Dessert. The annual Dessert. The annual average temperature is average temperature is average temperature is 27.1oC. Extreme hot in 27.1oC. Extreme hot in 27.1oC. Extreme hot in summer & Cold in summer & Cold in summer & Cold in winters. During the winters. During the winters. During the year, there is minor rain year, there is minor rain year, there is minor rain fall. fall. fall. Benefits: The beneficiaries of the The beneficiaries of the The beneficiaries of the project will be project will be project will be communities served by communities served by communities served by the project road, the project road, the project road, although not necessarily although not necessarily although not necessarily travelling on the new travelling on the new travelling on the new road, will benefit road, will benefit road, will benefit indirectly from the indirectly from the indirectly from the improved, lower cost improved, lower cost improved, lower cost and faster transport and faster transport and faster transport services and thereby services and thereby services and thereby obtain improved access obtain improved access obtain improved access to economic to economic to economic opportunities and social opportunities and social opportunities and social services. services. services. Government and non- Government and non- Government and non- government agencies government agencies government agencies using the project road using the project road using the project road will improve their will improve their will improve their services delivery due to services delivery due to services delivery due to improved transport improve transport improve transport efficiency. efficiency. efficiency. Enhancement of socio- Enhancement of socio- Enhancement of socioeconomic activity of the economic activity of the economic activity of the highway traversed highway traversed highway traversed districts. districts. districts.

i) Chief Resident Engineer and design review staff will be mobilized in advance for a period of 03 months ii) Supervision construction period =36 months iii) For handing over and taking over = 3 month iv) Total Duration of Assignment = 42 months

7. The Consultants will perform the duties of the Engineer specified in the FIDIC conditions of contract and will be required to nominate chief Resident Engineers for the contract(s) who will be full-time residents in the areas or located in the proximity of project areas. In addition to the primary role, the Consultants will assist the Employer in the efficient administration and implementation of the sub-projects, support and strengthen it in its tasks, monitor progress, financial management, social, design review problems during construction (if arisen) and environmental safeguards and gender mainstreaming in the project. The Consultants will report to the project Authorities of NHA. The Consultants will work under the overall guidance, coordination and directions of the GM.

3. Objective

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8. The overall objectives of these Terms of Reference are to:

a. Ensure that the detailed engineering design is reviewed, and updated if required, in accordance with the specified parameters / standards and best international practices prior to implementation of civil works contracts; b. Ensure that high quality construction is achieved in time within budget and that all work is carried out in full compliance with the approved engineering designs, technical specifications, agreed work schedule, and within the terms and conditions of all other contract documents and sound engineering practices; c. Demonstrate the efficacy of contract administration and supervision by independent external agencies; d. Ensure safeguards management of projects i.e. support in updating and implementation of the LARPs, and incorporating EMPs in the works contracts, provide support to the contractors in the preparation and implementation of site specific EMPs which are fully consistent with the ADB’s safeguards requirements, review and approve site specific EMPs, location and plans of contractor’s facilities (camp, asphalt plant, batching plant sites and borrow areas); monitor and evaluate the implementation of environmental management plan, resettlement plan and other social safeguard measures to be taken by the contractor and Employer; e. Promote technology transfer and the introduction of modern Contract Administration practices within NHA.

4. Scope of Consultancy Services

C. 4.1 General Duties and Responsibilities of the Consultants are: • Review of Bid documents for the project and assist NHA in prequalification of contractors, evaluation of bids received and award of civil works contracts; • The Consultants will carry out a critical review of the detailed engineering design prior to the commencement of works to identify anomalies or omissions that constitutes inconsistency in the design and completeness of works. This design review should be completed in three (3) months’ time and the design review report will be submitted within three (3) months. The design report should clearly indicate if any section of the road requires adjustment in the horizontal and vertical alignment, changes to the structures and identify the LARP and non LARP areas. On completion of the review, the Consultant will prepare a report, setting out all findings and recommendations for correcting any defects or omissions identified. Notwithstanding these, the Consultant will immediately inform the employer of any defect or omission that may have a substantial impact on the Project at the time the defect or omission is uncovered; • Civil works will be carried out based on the FIDIC Conditions of Contract for Construction, MDB Harmonized Edition – June 2010. The consultant will administer the civil work’s contracts, make engineering decisions, be responsible for quality assurance, provide general guidance and furnish timely responses to the contractors in all matters relating to the civil works, and ensure that all clauses of the contract agreement between the civil works contractors and PIU are adhered to and respected; and • The consultants will advise PIU on all matters relating to the efficient and successful execution of the civil works contracts, and will act at all times to protect the interests of the project and will take all reasonable steps to keep the construction costs to a minimum, consistent with sound economic and engineering practices; and will prepare a “Contract Administration and Construction

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Supervision Manual” outlining routines and standard operating procedures to be applied in contract administration and construction supervision, based on sound internationally recognized practice, NHA specifications and civil work contract of the project. 4.2 Design Review: 9. The Consultant will review and validate on ground, the detailed engineering design including the design reports, design calculations and design drawings. Thereafter the Design Review Consultants will bear the professional liability for the accuracy of the design, which will be covered under this contract. The design review shall include but not be limited to the following tasks: (1) Review & ensure that the design meets all the standards and parameters specified in these ToR for the consultants, NHA specifications and best international practices. The design criteria used are: Description Codes Geometric Design AASHTO Policy on Geometric Design of Highways &Streets- 2004 Material & Testing AASHTO _ASTM Pavement Design AASHTO guide for Design of Pavement Structures 1993 Seismic Design Uniform Building Codes (UBC) and seismic zone Map of Pakistan and AASHTO The bridge and structures have been designed generally according to the West Pakistan Highway Code of Practice for bridges with following additional condition: -AASHTO Specifications for Highway Bridges of load factor for various limit states and lateral force due to earthquake.

(2) Review and ensure that the geometric alignment particularly the horizontal curve and vertical profile of National Highways as well as service roads, meets the minimum specified criteria. (3) Review and ensure that a cost-effective embankment height, has been adopted throughout the alignment, based on the required capacity of soil, depth of water table and drainage pattern of the surrounding area. (4) Review and ensure that the pavement is most efficient and cost effective; design has been carried out on the basis of traffic studies conducted by the Design Consultants, characteristics of the proposed pavement materials, the calculated loading (ESALs) and prescribed design life. (5) Review and ensure that the design parameters, calculation, location and layout of hydraulic and other traffic engineering structures to include bridges, flyovers, underpasses and culverts, on the basis of hydrology report, geotechnical investigations, soil analysis, drainage pattern, and site conditions, ensuring that safe and cost-effective designs are adopted. (6) Review and ensure that the design of roadside drainage and cross drainage structures has been carried out as per the site requirement and flow patterns/calculations of runoff. (7) Review and ensure that the design, lay out and requirement of retaining walls, breast walls, other retaining structures, and slope stability/ slide control measures are as per the geotechnical requirement and site conditions. (8) Review and ensure that the requirement for U turns, underpasses, overhead bridges, Entry/ Exits, Service lanes, and all other highway related works have been included in the design. (9) Review existing soil reports provided by the Employer and suggest any additional testing, if required.

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(10) Carry out the Highway Safety Audit as per international standards after a detailed site visit. Consultants will ensure that all safety measures are taken without any compromise in the design and recommend improvement/missing safety measures, if any before execution of the road; Verify a highway safety audit to ensure that all traffic signs, pavement marking, and pavement studs have been provided in the design as per the requirement. Check proposed work zone safety requirements are in accordance with best international practices. (11) Based on the finding of Initial Environmental Examination (IEE)/Environment Impact Assessment (EIA), review the environment study report. Ensure that adequate measures are incorporated in the design to mitigate the adverse impact including those likely to be encountered during construction and recommend any improvement. (12) Based on design review, i) prepare social due diligence reports conforming project road sections with and without LAR impacts, including clearly marking LAR and non-LAR sections in the field and reflected in a linear plan and timelines for updating of LARPs; ii) and facilitate PIU in updating the LARPs based on horizontal and vertical alignment adjustments proposed/incorporated (if any) in design to ensure that LARP updating/implementation and monitoring is consistent with the provisions of the RF for CAREC MFF and ADB’s SPS requirements. Assist PIU in; a) establishing a LAR database; b) planning and implementation of public consultations during design review; c) LARP implementation and monitoring i.e. payment of compensation as per LARP provisions and delivery of periodic monitoring reports; and d) make operational the Grievance Redress Mechanism (GRM) with complaints recording, tracking, monitoring and community outreach systems. 4.3 Design Review and Supervision of Buildings: 10. The Consultant will review the design of Buildings which will be constructed for this project and provide supervision during construction and Consultant will also be responsible for quality execution of work.

4.4 Contract Administration & Construction Supervision: 11. The scope of construction supervision and contract administration services of the Consultant shall include but will not be limited to the following tasks:

(1) Prepare the Pre-Construction meeting agenda, and conduct the Pre-construction meeting, record and distribute the minutes. (2) Appoint various members of the Engineer’s construction supervision team as the Engineer’s Assistants (Resident Engineers. Material Engineers, Inspectors, etc.) and notify the Contractor and the Employer, and approve the Contractor’s Representative. (3) Verify whether the Performance Security complies with the form provided in the Contract, whether it is in the correct amount and currencies, and notify the Employer accordingly. (4) Advise the Employer whether to accept the Performance Security. (5) If the Contractor does not submit the Performance Security on time, notify and advise the Employer of the appropriate contractual remedies. (6) Request the Contractor to increase the amount of the Performance Security as per Condition of Contract if the Contract Price increases and monitor the validity of the Performance Security until the issue of the Performance Certificate. (7) Verify whether the bank guarantee for advance payment is in the form specified under the Contract and in the amount and currencies stated in the Particular Conditions of the Contract.

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(8) Verify whether the bank guarantee for advance payment conforms to the Contract requirements and that the guarantee is valid until the entire advance payment is recovered from the Contractor’s payment certificates. (9) Interpret the specific provisions of the Contract related to the Employer’s obligation to give possession of the Site, and the Contractor’s Work Program, assess the contractual consequences of any specific land acquisition issue and advise the Employer on the appropriate mitigation measures. (10) Obtain the Parties’ confirmation that all conditions in Sub-Clause 8.1 of the Conditions of Contract are fulfilled. (11) Issue instruction to the Contractor to commence the works and record the Parties agreement according to Sub-Clause 8.1 of the Conditions of Contract. (12) Verify whether the form and substance of the evidence of the Contractor’s insurances is satisfactory, whether insurance premiums have been paid and the required insurances are effective on the dates required by the Contract. (13) Verify that the terms of the Contractor’s insurance policies fully comply with the requirements of the Contract including: (i) whether both the Employer and the Contractor are adequately covered as insured Principals; (ii) amounts insured and currencies of payment, validity of the insurance policies, special conditions; (iii) limits of insurance per event and in aggregate, deductibles, excess, conditions related to locations; and (iv) whether and which subcontractors are covered by the insurances, and whether additional insurances will be required if the Contractor engages new subcontractors. (14) Monitor whether the Contractor maintains adequate insurance in the course of performance of the Contract, particularly if the Contractor provides insurances for a fixed period which is shorter than the period required under the Contract. (15) Advise the Employer on the appropriate action and contractual remedies in case the Contractor does not perform its insurance obligations in accordance with Contract. (16) Without relieving the Contractors of their obligations under the Contract, review and approve the traffic management and safety plan, and ensure compliance such that the Works are carried out at all times in a safe and secure manner and damage or injury to persons or property is avoided. (17) Obtain the bench marks and other information from the NHA Design Section as required for commencement of construction activities. (18) Ensure that the Contractors have all necessary data for setting out and check the Contractors setting out including staking the right-of-way limits, centerline, and grade and confirm permanent monuments in the construction area. (19) Ensure that all land and all rights-of-way required for the Project and all Project facilities are made available to the Works contractor in accordance with the schedule agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Borrower relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; and (c) all measures and requirements set forth in the LARP, and any corrective or preventative actions plan set forth in a Safeguards Monitoring Report. (20) Ensure that ensure that four emergency response centers and bus stops with sex- separated toilets and rest spaces for female road users and other gender-sensitive road designs are fully constructed and become operational for those target users.

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(21) Assist the PIU in notifying the contractors on LAR and non-LAR sections and ensuring that works are conducted only in LAR-free areas and areas where LARP implementation has been completed. (22) Submit semi-annual reports during construction and annual reports thereafter with separate environmental and social Safeguards Monitoring Reports to ADB, and disclose relevant information from such reports to affected people promptly upon submission. (23) If any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the EIA, the CEIA, the EMP, the SSEMP or the LARP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan. (24) Report any actual or potential breach of compliance with the measures and requirements set forth in the EMP, the SSEMP or the LARP promptly after becoming aware of the breach. Provide NHA with a written notice of any unanticipated environmental, or resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the EIA, the CEIA, the EMP, the SSEMP or the LARP. (25) Carry out the following duties related to environmental management with particular reference to the technical requirements of sound environmental standards on the basis of the Environmental Assessment and Review Framework (EARF), the Initial Environmental Examinations (IEEs), the Environmental Impact Assessments (EIAs) and the Environmental Management Plans during construction: (i) review and endorse site specific Environmental Management Plans (EMPs) for the projects sections, prepared by the Contractors; (ii) ensure that all the environmental mitigation measures required to be implemented are incorporated into the contract documents; (iii) ensure that the Contractors comply with the measures and requirements relevant to the contractors set forth in each IEE and EMP, and any corrective or preventative actions set out in Environment Monitoring Reports; (iv) conduct environmental monitoring and ensure that the day-to-day construction activities are carried out in an environmentally sound and sustainable manner; (v) prepare and submit semi-annual environmental monitoring reports on the implementation of the ‘Environmental Management Plan (EMP) to PIU within 14 days after a completion of the monitoring period; (vi) Prepare additional environmental impact assessments, if required, compliant with ADB SPS (2009) and ensure that all required mitigation measures are identified and acceptable; (vii) in the event of unanticipated environmental and/or social risks and impacts, that were not considered in the applicable IEE, EIA or EMP, promptly inform PIU and ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; (viii) report to ADB/PIU of any actual or potential breach of compliance with the measures and requirements set forth in the applicable EMP promptly after becoming aware of the breach. (26) With respect to the prevention of HIV/AIDs and Human Trafficking, monitor that the contractors comply and carry out required actions as provided in the respective contract documents, such as awareness and education of laborers and workers. (27) Ensure that the contractors do not involve child labor for the execution of the civil works contracts in accordance with the provisions of the contract agreement. (28) Without relieving the Contractors of their obligations under the Contract, check and approve the contractors' Working Drawings, Method Statements and Temporary Works proposals.

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(29) Reviews the Contractor’s Work Program and notify the Contractor if the program does not comply with the Contract. (30) Monitor the progress against the Work Program and the cash flow estimate and request revisions, if required. (31) Report in the Consultant’s Monthly Report the work progress against the Contractor’s Work Program and the cash flow estimate. (32) Verify whether the progress charts in the Contractor’s Monthly Progress Report reflect the actual progress and correspond to the latest revision of the Work Program and the cash flow estimate, and instruct the Contractor to correct the report, if required. (33) If required, determine the Contractor’s entitlements to time extensions on the basis of the Contractor’s Work Program. (34) Determine the Employer’s entitlement to Delay Damages on the basis of the Work Program and advise the Employer of the relevant contractual remedies if the Contractor’s progress is behind schedule. (35) Verify the Contractor’s Monthly Progress Reports and notify the Contractor of any incorrect or inconsistent information. (36) Conduct regular weekly site meetings and monthly progress review meetings, record and distribute the minutes. (37) Perform quantity take-offs from drawings to verify BoQ quantities. (38) Issue regular notices to the Contractors of intended field measurements, measure the Works, compute the quantities for payment, and determine the amounts due to the Contractor within the period specified in the Contract. (39) Carry out any subsequent design changes, and expeditiously issue supplementary drawings, site instructions, variation orders and day work orders to avoid delay to the works and to ensure that the works are executed in accordance with Contract. (40) Establish and maintain throughout the works contracts a structured system of measurement records, supporting documents and calculations for the payment of all BoQ items, that is transparent for auditing purposes. (41) Provide all necessary assistance to the Employer and external auditors for conducting regular quarterly audits of the measurement records, supporting documents and calculations for the payment of all BOQ items. (42) Verify the sources of indices or prices for price adjustment determine a provisional value of an index/reference price until it is published, but, if the index is not published in certain period(s), apply the last available published value. (43) Establish with the Contractor a standard format for the Contractor’s Statement and the Interim Payment Certificates. (44) Issue the interim certificates to PIU for payment to the Contractors in accordance with Clause 14 of the Conditions of Contract, having regard to any contractual provisions for advance payment, variation of price, and exchange rate fluctuation etc. Certify the completion of the Activities/Works or parts thereof and process final payments to the Contractors. (45) Prepare and maintain the Estimates of Cost of Works to Completion continuously, update the Estimates after each Variation instruction or a Variation Order issue and after each IPC, and present the latest Estimate in the Consultant’s Monthly Progress Reports. (46) Initiate and process variations promptly, when it is necessary for the construction of the works. (47) Request the Contractor’s technical and cost proposal, as required, consult both parties in all matters in connection to variation work.

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(48) Value variations, obtain the Employer’s approval of any variation, issue variations under the Contract, keep record of all variations issued under the Contract and report the summary of the variations in the Consultant’s Monthly Progress Reports. (49) Discharge fully the Engineer’s obligations with respect to approval of materials and workmanship, approval and auditing of the Contractor’s Quality Assurance System and the QA Personnel and the compliance testing by the Engineer. (50) Inspect quarries and borrow pits, and crushing plants, and order tests of materials and ensure adherence to specifications, and approve the sources of materials. (51) Without relieving the Contractors of their obligations under the Contract, monitor the Contractors' laboratory testing, evaluate the Portland cement concrete and bituminous mixture designs prepared by the Contractors, and recommend improvements (if any) to ensure the desired performance, and accord approval thereof. (52) Carry out independent testing in the field and/or in the laboratory of the "Engineer/Project Manager" , and approve or disapprove and certify the works that conform with the specifications and maintain permanent records of results of all the tests made. (53) Give notice to Contractors of any defects and deficiencies, and issue instructions for the removal and substitution of the improper works, where provided under the contract. If required, order suspension of the work(s) and/or recommend to PIU other recourse available under the Contract. (54) When the works are completed in accordance with the Contract, issue a Taking over Certificate to the contractor(s). (55) Undertake an inspection of the works at the completion of the respective road sections, and certify the contractor(s)’ final accounts. (56) Obtain the Employer’s specific approval before taking any action for determination of extension of time, additional costs and the Contractor’s claims for additional time or costs, for all events for which the Employer’s express approval is required under the Conditions of Contract. (57) Assess objectively the Contractor’s claims and give professional and objective advise to the Employer, consult both parties before determining an extension of time. (58) Determine Contractor’s claims on the basis of the Contractor’s Work Program, the impact of the delay(s) event on the Critical Path and the particulars submitted by the Contractor, and not to act as the Contractor’s advisor in this matter. (59) Prepare standard Daily Diary forms and ensure that all supervision staff maintain daily diaries of Contractor's and its own activities. (60) Assess minimum construction equipment, plant and machinery requirements, by type and specification, and monitor, keep and regularly update a list of the Contractors' equipment, plant and machinery in order to keep a check on the Contractors' mobilization. Inspect and evaluate the Contractor’s establishments including in particular the laboratory facilities to ensure compliance with the terms and conditions of the Contract. (61) Maintain an Events Log starting at beginning of Contract. (62) Assist the parties establish Dispute Board, provide all necessary information to DB members and attempt to facilitate amicable settlement of the dispute between the Employer and the Contractor. (63) Establish and maintain an effective documents management system in the Engineer’s office, which provides for separate filing of incoming and outgoing correspondence and documents, as well as the filing by subject matter.

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(64) Carry out detailed inspections of the works during the Defects Notification Period and prepare detailed inspection and recommendation reports for the Employer after each inspection. (65) Ensure that the contractor(s) provide a safe workplace for their workforce, supervisory personnel and for members of the public requiring access through the sites in full conformity with Health and Safety regulations. (66) Ensure that the contractor(s) comply fully with contractual obligations relating to care of the environment (both specified and legislated) and provide all reports and obtain all permits and permissions required in relation to spoil areas, borrow areas quarries and the like. (67) Keep and maintain daily records of labor, equipment and weather conditions on the site along with records of activity, progress and other events happening on the site and having relevance to the works. (68) Ensure the receipt of and maintain as permanent records of all warranties required under terms and conditions of the Contract for materials including their source and equipment accepted and incorporated in the project. (69) Undertake project performance monitoring and evaluation in accordance with the Project Framework and ADB's Project Performance Management System (PPMS) Handbook including the baseline data survey and the following annual survey and reporting up to project completion. (70) Advise PIU on need for effective liaison with local authorities, police, landowners, utility owners, complainants, the public and other organizations affected by the Works in order to minimize or avoid unnecessary delays or disputes. (71) Maintain consolidated project accounts and assist NHA for settlement of Audit Para’s and objections raised, prepare replies related to project, and provide the entire relevant documents/papers/letters etc. to support the replies-until 1 year after completion of works. The cost to be incurred may be built in the rates. (72) Develop training programs for EA staff and develop on the job training on innovative construction methods, project management and value engineering. (73) Based on the design data provided, prepare revised PC-1 (if required) for the project including economic analysis and Environmental Impact Assessment (EIA) on Performa of PC-1 prescribed by Planning Commission. (74) Provide any other specialist services requested by PIU under conditions to be mutually agreed ensure that the construction methods as proposed by the contractor for carrying out the works are satisfactory, inspection of contractor’s construction equipment; and safety of the works, property, personnel, and general public; the schedule of mitigation measures for adverse environmental impacts. (75) The Consultants will be responsible for the audit report, observation and will make the necessary replies, report, and presentation to defend the department interest up to settlement. (76) For any laps in quality, quantity, or financial irregularity related to the performance of the Services, the Consultants will indemnify the Client.

5. Staffing

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12. 123 person-months International and 1,567 person -months national experts for design review and construction supervision consultants are required to review the designs and assist in construction supervision/contract administration, financial management, safeguard compliance and implementation of the abovementioned projects. The consultancy services would be required for a period of 42 months. There will be three “site supervision teams”, for three contract packages. The staffs for each package are expected to mobilize on the date of actual commencement of works by the contractors.

13. Construction Supervision Deputy Team Leader of the Consultants is expected to be full time during construction and be mobilized to the Project Site at least three months in advance of the commencement of the works in order to assist PIU with activities leading up to mobilization of the Contractors. Consulting Services will be engaged using Full Technical Proposal (FTP) procedures based on quality and cost-based selection (QCBS) method following ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). The provisions of ADB’s Anticorruption Policy will be included in all invitation documents and contracts for consultants.

INTERNATIONAL EXPERTS

1. Title: Chief Resident Engineer (CRE)/ Team Leader

Experience: 15 year’s international experience as Chief Resident Engineer and 10 years as Team Leader on major road projects.

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• Ensure preparation of detailed and quantitative progress reports to support the contractor’s requests for progress payments. • Keep the Employer informed of technical issues and progress of all works both by informal and formal meetings and correspondence and assist in any project issue which the Employer may require. • Participate in the Dispute Board meetings to explain and discuss issues raised by the Contractor/Employer or dispute board. • Ensure implementation of environment and social safeguards requirements. • Assist the Employer in preparing responses to audit objections and queries of the financiers or other Government Authorities. • Coordinate with all concerned Employer’s organizations on project issues. • At the end of the construction activities, guide and ensure that the team prepares a comprehensive Construction Completion Report inclusive of “as-built drawings” as appropriate.

2. Title: Senior Pavement Design Engineer

Experience: 15 year’s international experience or more in major road construction works with a focus on pavement engineering and materials testing. Relevant experience should include: (i) supervising the Contractor's compliance with material specifications and testing; (ii) providing input to the design team to source suitable materials; (iii) engineering design of flexible Asphaltic Concrete (AC) pavements, (iv) coordinating and supervising the work of field teams in supervising and certifying construction in accordance with contract conditions including acceptance standards of materials, approval of source supply, establishing QAJQC procedures, setting up laboratories, mix designs and testing procedures; (v) fluency in English; and (vi) regional experience in Central Asia.

Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Transportation Engineering or equivalent.

Responsibilities: He/she will be responsible for checking the pavement design and providing comments. Lead the design review of pavement works in the Detailed Engineering Design (DED) including proposed material specifications and sources and asphalt and concrete mix designs;

3. Title: Senior Bridge / Structure Engineer

Qualification:

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Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Bridge Engineering or equivalent.

Responsibilities: The Senior Bridge/Structure Engineer will perform duties under the guidance of the Team Leader. He/she will assist the Team for the Design Review particularly the bridges and structures so that the project is implemented in accordance with the required specifications and approved drawings. She/he will set up supervision systems, and train the consultant’s national staff in their use.

4. Title: Lead Material Engineer (International)

Experience: 12 year’s international experience as Material Engineer on major road projects, preferably two years’ experience of asphalt concrete mix design in countries having similar climate condition and truck over loading problems like Pakistan. Qualification: Bachelor’s degree in Civil Engineering-preferably Master(s) in Geo-Technical Engineering / Highway Engineering / Engineering Geology / Material Engineering / Pavement Engineering.

Responsibilities: Soil/Material Engineer will perform duties under the guidance of the Team Leader. He/she will assist the Team during construction supervision of the Road, Bridges and structures and assist in ensuring that the subject project is implemented in accordance with the required specification and approved drawings. The Soil/Material Engineer will set up quality control systems, testing procedures, preparation of JMF, train the national staff and ensure that the system is in place.

5. Title: Senior Hydrologist

Experience: 12 year’s international experience in hydrological design of roads and bridges. Minimum worked on 3 design projects.

Qualification: Bachelor’s degree in Civil Engineering- preferably Master(s) in Hydrology or equivalent.

Responsibilities: The senior Hydrologist will perform their duties under the guidance of the Team Leader. Work in the survey and design team and will be responsible for collecting and assessing the hydrological data, finalizing the design discharges for the required drainages, cross drainages, sub surface drainages. Provide assistance to the design team for designing the appropriate and cost effective design/design review of drainage structures. Hydrologist shall collect relevant field data and estimate the design discharges for various drainages structure for the design /design review purpose. He/ She will set up system and train the consultant’s national staff in its use.

6. Title: Senior Contract Specialist

Experience:

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15 years’ international experience as Contract Specialist on major road projects based on FIDIC form / conditions of contract, Experience and knowledge of ADB’s procurement procedures is essential. Proven credentials in contract administration, evaluating contractor’s claims and dispute resolution, preferable experience/track record of an arbitrator, mediator, adjudicator and/or dispute resolution adviser.

Qualification: Bachelor’s degree with a major in Civil Engineering, Law, Contracts, Purchasing, or Management – preferably Master(s) in Civil Engineering, Law, or Contracts / Procurement, or equivalent.

Responsibilities of the Senior Contract Specialist will include, but not limited to the following: • Assist Employer and TL in coordinating contract management and planning activities for the work package with Engineering, Project Controls and Construction; • Assist to organize meetings for negotiating and resolving technical and contract completion issues; • Assist Employer and TL in effect the timely distribution of reports and pertinent commercial information to and from Contractors in accordance with agreed schedule; • Assist in schedule turnover meetings with Site Personnel, where required; • Assist to check timesheets for contract conformance (rates, backup and extensions); • Assist in review of Contractors’ invoices and prepare Progress Payment Certificates with Cost Control; • Assist in review of Contractors’ costs, forecasts and requests for extras; • Assist in review and issue for approval and post Substantial Performance documents; • Participate in contract cost review meetings and regular Project progress and assist with preparation of monthly contracts and Project progress reports; • Assist in procurement and contracts administration and assistance actions such as contracts, solicitations, modifications, delivery schedules, plans and coordination with relevant departments; • Assist in preparation of procurement and contract documents; • Assist in the review of procedural aspects of contract actions. Participate in contracts administration sufficient to ensure contract terms and conditions are met and that the contractor delivers the required services in a timely manner to achieve the objectives of the project; • Assist in the termination of contracts for the convenience of the Project by the contractor. The incumbent is responsible for the preparation of all documentation necessary to support and defend termination decisions; • Recommend actions when the contractor is not in compliance with contract provisions; • Coordinate with contractors to determine and recommend alternative courses of action, such as extension of delivery schedule; • Conduct contract reviews to evaluate contractor’s performance, and monitor contractor activity to assure compliance;

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• Monitor such matters as payments, claims, and contractual changes to ensure requirements of the contract are met; • Review completed contract file to ensure routine administrative matters are resolved or completed; and • Support to TL in drafting, for submittal to ADB through Employer, any requests for consent to extension of time/variation orders.

7. Title: Senior Geotechnical Engineer

Experience: 15 years’ international experience as Geotechnical and/or Geotechnical reviewer of roads/structures with proven credentials in Bridge Designing or related to foundation investigation and design of major structures and embankments.

Qualification: Bachelor’s degree in Civil Engineering or Geological Engineering with Master’s degree in Geotechnical Engineering or Foundation Engineering or equivalent.

8. Title: Senior Geometric Design Engineer

Experience: 15 years’ international experience in roads (geometrics) and bridges design experience; strong background in access management and traffic control systems is highly desirable.

Qualification: Bachelor’s degree in Civil Engineering - preferably Master(s) in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering or equivalent.

Responsibilities: The Senior Geometric Design Engineer will assist the Team during the design review and construction supervision of the project and will verify the detailed design and provide comments. Verify and recommend/provide design plans for road furniture and road safety appliances.

9. Title: Senior Environmental Specialist

Experience: 15 years’ international experience as Environment Specialist supervising and monitoring environmental management plans on donor financed road projects and familiarity with the ADB’s safeguard policies.

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Qualification: Bachelor’s degree in Environmental Engineering - preferably Master(s) in Environmental Sciences or equivalent.

Responsibilities: Responsible for preparing Environmental monitoring check list, reviewing and endorsement of Site Specific Environmental Management Plan (SSEMP), review of Bi-Environmental monitoring reports, prepare corrective action place in case of noncompliance. The Senior Environmental Specialist will set up environmental management and monitoring system (EMMS), train the national staff and ensure that the EMMS is in place.

10. Title: Road Safety Auditor

Experience: 15 year’s relevant international experience with proven credential as safety auditor on major road projects.

Qualification: Bachelor degree in Civil Engineering and certified safety auditor.

Responsibilities: The Road Safety Specialist is part of the services team and will be providing all necessary assistance to the team with respect to all safety, health and environmental issues. He/she will review and approve the safety plans of the contractor and s/he will monitor the safety of the works and the safety of the traffic diversions and ensure compliance with the regulations. The specialist will identify hazardous location(s) and conditions, conduct a highway safety study, collect and analyze preliminary data, identify and collect field data, select and conduct appropriate detailed studies, evaluate study results, determine safety and operational deficiencies, identify potential safety and operational improvement and to provide appropriate improvements. The specialist will set up the road safety supervision systems, train the national staff and ensure that the system is in place.

NATIONAL EXPERTS

11. Title: Deputy Team Leader

Experience: 15 years’ experience as Deputy Team Leader / SRE on major road projects in contract management, processing of claims and implementation of road projects.

Responsibilities:

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Responsible for construction supervision and ensuring that the project is implemented in accordance with the required specifications and approved drawings. Assist Team Leader for issues relating to Highway Geometry etc. when required.

Responsibilities of the Deputy Team Leader/ SRE will include, but are not limited to the following: • Act as the Team Leader during the absence of Team Leader. • Assist the Team leader in ensuring that the consulting team undertakes comprehensive review of designs and specifications and carries out construction supervision and contract administration of the civil works for the Project assuming the role of “the Engineer” and undertake all tasks as defined under FIDIC General Conditions of Contract for Construction. • Assist the team leader in overseeing the consultants activities ensuring compliance to detail provided in the construction drawings and strict adherence to construction specifications. • Assist the Team Leader in overseeing quality control methodology put in place, confirming its adequacy and ensuring that its employment is satisfactorily carried out. • Render necessary advice and assist the Team leader in contract administration and procurement issues/assignments/contractual claims. • Assist the Team Leader in resolving any contractual issues. • Determine extension of time for completion and other claims in accordance with the conditions of contract in consultation with the CRE / Team Leader. • Provide assistance to the Employer in dispute resolution as per provisions in the conditions of contract. • Assist the Team Leader in keeping the Employer informed of contractual and claims issues by direct contacts and through discussions or correspondence. • Assist the CRE/Team Leader in holding meetings with the Contractor on contract and claims issues. • Assist the team leader in preparing a comprehensive Project Completion Report (PCR) and any other duty/ assignment the Team Leader may entrust.

12. Title: Project Coordinator

Experience: 12 years’ experience as Project Coordinator in Highways or major road projects. Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering / Construction Management / Project Management or equivalent.

Responsibilities: Responsible for construction supervision and ensuring that the project is implemented in accordance with the applicable specifications, approved drawings, and timeframe. Responsible for construction supervision and reviewing and approving contractors’ bills. Supervise the work of Resident Engineers and rest of construction supervision teams and will manage the construction milestones and quality control of works. Provide assistance to the Deputy Team Leader in overall management, monitoring and reporting and will be responsible for day-to-day management of works. The construction works will be executed in accordance with the Conditions of Contract contained in ADB’s standard documents as appropriate and in accordance with Conditions of Contract.

102 Appendix 2

Responsibilities of Project Coordinator will include but not limited to the following: • The Project Coordinator will be responsible for quality, cost, scope, time, safety, and environmental control of the subprojects. • Review and assist in the approval of contractor’s work program, method statements, material sources, preparing and issuing reports as defined subsequently, approving and/or issuing working drawings, approving the setting out of the works, and instructing the contractor. • Certifying work volume and recommending interim certificates for progress payments, maintaining consolidated project accounts, and preparation of financial statements, ensuring minimum disruption/damage to the environment by approval of contractors’ work statement/methodology. • Monitoring the impact of construction works on the environment and local settlements and providing information to the PMC, NHA department, and the ADB on the monthly progress reports. • Preparing and issuing reports as defined subsequently. • Approving and/or issuing working drawings, approving the setting out of the works, and instructing the contractor. • Taking measurements and keeping measurement records. • Maintaining records, correspondence, and diaries. • Certifying work volume and recommending interim certificates for progress payments. • Maintaining consolidated project accounts, and preparing financial statements and withdrawal applications for submission to the ADB. • Certifying completion of part or all of the works. • Inspecting the works at appropriate intervals during the defects notification period and issuing the defects notification certificate. • Processing the contractor’s possible claims. • Ensuring minimum disruption/damage to the environment by approval of contractors’ work statement/methodology, including monitoring the impact of construction works on the environment and local settlements and providing information to NHA and the ADB on the monthly progress reports. • Providing the employer with complete records and reports, and approving the contractors’ as - built drawings for the works. • Inspecting the works at appropriate intervals during the defects notification period and issuing the defects notification certificate. • Compile a Project completion report providing details of Project implementation, problems encountered, and solutions adopted, and detailing and explaining any variation in Project costs and implementation schedules from the original estimates.

13. Title: Resident Engineer (RE)

Experience: 12 years’ experience as Resident Engineer in Highways or major road projects.

Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering / Construction Management / Project Management or equivalent.

Responsibilities:

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RE will be responsible for construction supervision of the road and ensuring that the subject project is implemented in accordance with the required specification and approved drawings.

He will be responsible for construction supervision and review and approval of contractor’s bills. RE will assist the Project Coordinator in the performance of his tasks. The main responsibilities of the position will include but not limited to the following:

• Inspect the site and collect the condition data for the design review and necessary changes if any. • Preparation of technical details such as specifications and estimates. • Provide details about existing pavement, damages and assessment. • Assist the Project Coordinator and recommend approval of contractor’s work program, method statements, material sources, etc. • Assist the Project Coordinator in preparing and issuing reports as defined subsequently. • Review and recommend approval and/or issuing working drawings, approval of the setting out of the works, and instruction to the contractor. • Taking measurements and keep measurement records. • Maintaining records, correspondence, and diaries. • Certifying work volume and recommending interim certificates for progress payments. • Assist in maintaining consolidated project accounts, and preparing of financial statements and withdrawal applications for submission to the ADB. • Provide feedback to the Project Coordinator on the certification of completion of part or all of the works. • Processing the contractor’s possible claims. • Ensuring minimum disruption/damage to the environment by approval of contractors’ work statement/methodology, including monitoring the impact of construction works on the environment and local settlements and providing information to W&S Sindh and the ADB on the monthly progress reports. • Providing the employer with complete records and reports, and recommend the contractors’ as - built drawings for the works. • Assist in the compilation of a Project completion report data, providing details of Project implementation, problems encountered, and solutions adopted, and detailing and explaining any variation in Project costs and implementation schedules from the original estimates.

14. Title: Highway Engineer

Experience: 10 years’ experience as Highway Engineer in Highways or major road projects.

Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Transportation Engineering or equivalent.

Responsibilities: He/she will assist and will be responsible for spending time on site, making inspections, supervising work, designing highways, deciding where to place traffic control systems, calculating slopes, and ensuring a safe transport system.

Main responsibilities of the position will include but not limited to the following:

104 Appendix 2

• Undertake services within an engineering environment which may include (but not limited to); scheme investigation, site and structure inspections, data collection and analysis, traffic order making, works/construction inspection and supervision to progress scheme design, development and construction. • Prepare technical designs or drawings, documents and use specialist software in accordance with approved design procedures and systems. • Assist with the management delivery of small projects or a small program of work with minimal supervision. • Be a proactive and collaborative team member, work closely with colleagues and fit seamlessly into a delivery team. • Be flexible and proactive and liaise with other teams from other engineering disciplines. • Assist in the development of others.

15. Title: Structure Engineer

Experience: 12 years’ experience as Bridge/ Structure Engineer preferably on major road / bridge projects.

Qualification: Bachelor’s degree in Civil Engineering - preferably Master in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering or equivalent.

Responsibilities: He/she will be responsible for construction supervision of bridges/culverts and of structural components of the road and ensuring that the subject project is implemented in accordance with the required specification and approved drawings.

He will be responsible for construction supervision and review and approval of contractor’s bills. He will assist the Resident Engineer (RE) in the performance of his tasks. He will be responsible for designing especially on cost effective, multi-hazard resistant design, design the structural elements of roads component and bridges/ culverts, including detailed structural drawings and specifications. The main responsibilities of the position will include but not limited to the following:

• Inspect the site and collect the condition data for the design review and necessary changes if any. • Assist in preparation of technical details such as specifications and estimates. • Provide details about existing structures, damages and assessment. • Assist and recommend approval of contractor’s work program, method statements, material sources, etc. • Assist in preparing and issuing reports as defined subsequently. • Review and recommend approval and/or issuing working drawings, approval of the setting out of the works, and instruction to the contractor. • Taking measurements and keeping measurement records. • Maintaining records, correspondence, and diaries. • Certifying work volume and recommending interim certificates for progress payments. • Inspecting the works at appropriate intervals during the defects liability period and issuing the defects liability certificate. • Processing the contractor’s possible claims.

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• Ensuring minimum disruption/damage to the environment by approval of contractors’ work statement/methodology, including monitoring the impact of construction works on the environment and local settlements and providing information to NHA and the ADB on the monthly progress reports. • Providing the employer with complete records and reports, and recommend the contractors’ as -built drawings for the works. • Assist in the compilation of a Project completion report data, providing details of Project implementation, problems encountered, and solutions adopted, and detailing and explaining any variation in Project costs and implementation schedules from the original estimate.

16. Title: Material Engineer

Experience: 7 years’ experience as Material Engineer on five major road projects preferably with experience of Asphalt concrete mix design in countries having similar climate and truck over loading problems like Pakistan.

Qualification: Bachelor’s degree in Civil Engineering or Master(s) in Engineering Geology or equivalent.

Responsibilities: He/she will assist and will be responsible for of materials used in construction by performing field and laboratory tests and certifying their acceptance based on recommended specifications for the material, will also identify the sources of material and query sites.

Main responsibilities of the position will include but not limited to the following: • Stipulate Material Testing Procedures and Specifications. • Identify sources of materials, quarry sites and borrow areas. • Confirm the suitability and availability of material in the borrow pits and quarries for earthwork and pavement. • If required, identify and evaluate additional sources of materials. • Undertake field and laboratory testing of the materials to determine their suitability for various components of the work. • Prepare mass haul diagram for haulage purposes giving quarry charts indicating the location of selected borrow areas, quarries and the respective estimated quantities. • Make suitable recommendations regarding making good the borrow and quarry areas after the exploitation of materials for construction of works. • Be responsible for Material Testing and specification and certification of material quality. • Preparation and testing of concrete mixes of different design mix grades using suitable materials (binders, aggregates, sand filler etc.) as identified during Material Investigation to conform to specification applicable in Pakistan. • Preparation of JMF.

17. Title: Planning Engineer

Experience:

106 Appendix 2

Eight (08) years’ experience in planning and management of construction supervision projects of highways/ bridges. Hands on experience of using the latest versions of MS Project/ Primavera on one or more projects.

Qualification: Bachelor’s degree in Civil Engineering - preferably Master(s) in Engineering with specialization in Construction Management or equivalent.

Responsibilities: Generally, role of the Planning Engineer will be control of project progress, physical, financial and resources e.g. manpower, material and equipment. More specifically the Planning Engineer is required to do but not limited to the following: • Prepare and update project schedule based on the contract, Set work program and target milestones for each phase based on the project plan, Monitor critical activities based on the project schedule and advise project management. • Prepare and submit updated work program and cash flow curve showing actual progress and identify areas of weaknesses and establish means and methods for recovery, if any, as well as new critical activities. • Monitor day to day work progress and prepare the weekly and monthly program and report. • Maintain and record update of site work progress obtained from Site supervision staff. • Prepare monthly report reflecting work progress summary. • Report to the Team Leader about the current work progress and make comparison between plan and actual progress and study impact of alternative approaches to work. • Participate in project meetings and discussions with the Client as required, assist in preparing work program, cash flow and manpower histogram for contract(s). • Performs other duties and responsibilities as may be assigned from time to time. • Shall train the site supervision staff (Resident Engineer or other appropriate) and NHA’s staff for continuous monitoring of contracts by using the latest version of Primavera.

18. Title: Geometric Design Engineer

Experience: 10 years’ in roads (geometrics) and bridges design experience; strong background in access management and traffic control systems is highly desirable.

Qualification: Bachelor’s degree in Civil Engineering - preferably Master(s) in Civil Engineering / Highway Engineering / Structure Engineering / Transportation Engineering or equivalent.

Responsibilities: • Agree upon the category of road to be developed to make sure relevant design standards are applied and relevant guidelines are followed during the design process. It could be any category ranging from motorway to rural access roads or mountainous roads in rural settings and urban freeways, primary roads, secondary roads, laterals, and access roads in case of urban situation. • Provide design plans for various road segments including links (sections between road crossings) and road crossings. In case of motorways/expressways, only grade separated

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crossings and interchanges are involved whereas in case of lower order roads multiple choices are available requiring option analysis for selection of relevant form of road crossings

19. Title: Pavement Design Engineer

Experience: 12 years’ experience in major road construction works with a focus on pavement design engineering and materials testing. Relevant experience should include: (i) supervising the Contractor's compliance with material specifications and testing; (ii) providing input to the design team to source suitable materials; (iii) engineering design of flexible Asphaltic Concrete (AC) pavements, (iv) coordinating and supervising the work of field teams in supervising and certifying construction in accordance with contract conditions including acceptance standards of materials, approval of source supply, establishing QAJQC procedures, setting up laboratories, mix designs and testing procedures.

Qualification: Bachelor’s degree in Civil Engineering – preferably Master(s) in Civil Engineering / Highway Engineering / Transportation Engineering or equivalent.

Responsibilities of the Pavement Design Engineer will include, but not limited to the following: • Coordination of design review and construction supervision of all Project pavements, including the management of the Materials/Pavement engineering team in coordination with the Team Leader and the other senior officials of the Consultant Team. • Lead the design review of pavement works in the Detailed Engineering Design (DED) including proposed material specifications and sources and asphalt and concrete mix designs. • Review and approve the Contractor's proposed geotechnical investigations for pavements and pavement materials. • Liaise with the Bridge/Structural Engineer on the geotechnical requirements for bridge design. • Design review and construction supervision of all Project pavements. • Design review of pavement works, proposed material specifications and sources and asphalt and concrete mix designs. • Review the Contractor's proposed geotechnical investigations for pavements and pavement materials. • Review the construction schedule for all pavement works.

20. Title: Hydrologist

Experience: 10 years’ experience in hydrological design of roads and bridges.

Qualification: Bachelor’s degree in Civil Engineering - preferably Master(s) in Hydrology or equivalent.

108 Appendix 2

Responsibilities: Responsibilities of the Hydrologist will include, but not limited to the following: • He/ she will perform its duties under the guidance of the Senior Hydrologist and Team Leader. • Work in the survey and design team and will be responsible for collecting and assessing the hydrological data, finalizing the design discharges for the required drainages, cross drainages, sub surface drainages. • Provide assistance to the design team in designing the appropriate and cost-effective design/ design review of drainage structures. • Shall collect relevant field data and estimate the design discharges for various drainages structure for the design/ design review purpose.

21. Title: Environmental Specialist

Experience: 12 years’ experience as Environment Specialist supervising and monitoring environmental management plans on donor financed road projects and familiarity with the ADB’s safeguard policies. Specific experience in a similar position on road projects in accordance with GOP and ADB’s Environmental Guidelines will be preferred.

Qualification: Bachelor’s degree in Environmental Engineering - preferably Master(s) in Environmental Sciences or equivalent.

Responsibilities: Responsible for preparing Environmental screening check list and classifying sub projects that have not been yet classified, preparing and obtaining EIAs, IEEs and Environmental management plans (EMP), ensuring prior clearance, monitoring, course correction, consultations, due diligence and disclosures.

Responsibilities of the Environmental Specialist will include but not limited to the following:

• Assist Senior Environmental Specialist and Team Leader in reviewing the site specific environmental management plan (SSEMP) for each sub-project and ensure its effective implementation. • Assist Senior Environmental Specialist in preparing and executing required appropriate actions to mitigate any negative environmental impacts associated with construction activities in collaboration with PIU and all concerned stakeholders. • Ensure that any environmental impact assessments, if required, fully comply with ADB Guidelines and Safeguards Policy Statement (SPS, 2009) and ensure that all required mitigation measures are identified and acceptable. • Besides assisting in finalizing the semi-annual environmental monitoring report, assist the PIU in finalization of environmental part of quarterly progress report, annual progress report and any specific report asked by the PIU.

22. Title: Contract Specialist

Experience:

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12 years’ experience as Procurement/ Contract Specialist on major road projects based on FIDIC conditions of contract, Experience and knowledge of ADB’s procurement procedures is essential. Proven credentials in contract administration, evaluating contractor’s claims and dispute resolution; preferably having experience of preparing and interpreting of the procurement and contract documents besides making response on behalf of the Employer to settle Audit Para’s.

Qualification: Bachelor’s degree in Civil Engineering, law, contracts, purchasing, or management – preferably Master’s degree in Civil Engineering, law, contracts / procurement, or equivalent.

Responsibilities: Responsible for assistance in procurement and contract administration, taking timely contractual actions related to cost, time and quality controls and closure of the contracts, and in case of dispute its referral to the adjudication and arbitration. He/she will be responsible for assisting in all the activities pertaining to procurement and contract administration, early warning of key contractual actions, scheduling and documenting contract management meetings and evaluating/resolving contractor’s claims and contractual disputes. Responsibilities of the Procurement/ Contract Specialist will include, but not limited to the following: • Assist in coordinating procurement and contract administration and planning activities for the work package with Engineering, Project Controls and Construction. • Assist to organize meetings for negotiating and resolving technical and contract completion issues. • Assist in effect the timely distribution of reports and pertinent commercial information to and from Contractors in accordance with agreed schedule. • Assist in scheduling turnover meetings with Site Personnel, where required. • Assist to check timesheets for contract conformance (rates, back-up and extensions). • Assist in review Contractors' invoices and prepare Progress Payment Certificates with Cost Control. • Assist in reviewing Contractors' costs, forecasts and requests for extras. • Assist in review and issue for approval of post Substantial Performance documents. • Participate in contract cost review and regular Project progress meetings and assist in preparation of monthly contracts and Project progress reports. • Assist in procurement and contracts administration and assistance actions such as contracts, solicitations, modifications, delivery schedules, plans and coordination with relevant departments. • Assist in preparation of procurement and contract documents. • Assist in the review of procedural aspects of contract actions. Participates in contracts administration sufficient to ensure contract terms and conditions are met and that the contractor delivers the required services in a timely manner to achieve the objectives of the project. • Assist in the termination of contracts for the convenience of the Project if required; responsible for the preparation of all documentation necessary to support and defend termination decisions. • Recommend actions when the contractor is not performing in compliance with contract provisions. • Coordinate with contractors to determine and recommend alternative courses of action, such as extension of delivery schedule.

110 Appendix 2

• Conduct contract reviews to evaluate contractor’s performance, and monitors contractor activity to assure compliance. • Monitor such matters as payments, claims, and contractual changes to ensure requirements of the contract are met. • Review completed contract file to ensure routine administrative matters are resolved or completed. • Support to CRE/ TL in drafting, for submittal to ADB through Employer, any requests for consent to extension of time / variation orders.

23. Title: Social Development / Resettlement Specialist

Experience: 12 years’ experience in planning, preparation, implementation and monitoring of Social Safeguards (Involuntary Resettlement and Indigenous People) as Resettlement Specialist on IFI financed development projects and familiarity with ADB’s Social Safeguard Policies.

Qualification: Master(s) in Social sciences or relevant field.

Responsibilities: He/she will be responsible to support PIU in NHA to ensure compliance to social safeguards (Involuntary Resettlement and Indigenous People) while planning, preparation, implementation and monitoring of resettlement plans for the sub-projects as required under Safeguard Policy Statement (2009). During event he/she will facilitate NHA in screening of subprojects for IR/IP requirements, identify, assess and update impact inventory linked to the Displaced Persons (DPs) based on design review; conduct consultations with project affected/displaced persons and update the resettlement plans as per marked construction limits; establish updated Land Acquisition and Resettlement (LAR) database and grievance redress system for social safeguards. Monitor day to day Resettlement Plan (RP) implementation and consolidate RP implementation progress in monthly progress reports, facilitate NHA in recording and redress of grievances of project affected people and prepare Social Monitoring (internal monitoring) reports biannually or as provided in ADB cleared Land Acquisition and Resettlement Plans (LARPs) and project documents for ADB’s review as well as final report on social safeguards implementation at completion of project.

Responsibilities will include but not limited to the following: • Review the RF for the MFF, the LARPs prepared and accepted for each contract package and LARP database (the inventory of losses (IOL) and census data appended with the LARPs). Based on review of LARPs and LAR impacts data assist: i) the design review team of consultants and PIU in identification and marking of critical sections requiring design adjustments to avoid and minimize land Acquisition and resettlement impacts, ii) the PIU in disclosure of LARP provisions/entitlements, designing and delivery of compensation payment notices and conducting consultations with the DHs. • Coordinate with PIU and design review team during review of detailed design to discuss and explore design measure/options to avoid/minimize the resettlement impacts of subprojects and ensure involuntary resettlement impacts are minimized, if not avoided. • Based on detailed design review, prepare social safeguards due diligence reports conforming sub-projects/project road sections with and without LAR impacts including linear plans with

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clearly marked LAR and non-LAR sections and assist PIU and the Engineer in notifying the LAR sections to contractors that are not open for construction. • Assist and facilitate NHA’s LAR consultants and PIUs in conducting detailed measurement survey of impacted assets, updating of the impact inventory, census of DPs to ensure that the updated Land Acquisition and Resettlement Plans (based on design review) are prepared and submitted for ADB’s review and clearance in accordance with provisions outlined in the Resettlement Framework for the MFF. • Assist PIU in ensuring that i) the land acquisition process is compliant with National Law and ADB’s SPS requirements, ii) the land compensation is determined on replacement cost basis following procedures outlined in the subproject LARP and the LARF for the MFF and iii) land titles and detailed measurement of the acquired land is completed after publication of Section 6 notification under LAA and updated/addendum LARP is prepared accordingly. • Assist in organizing and conducting meaningful consultations with affected/displaced people to ensure the concerns raised are adequately addressed during design review, the Land Acquisition Resettlement Plans have been fully disclosed and the DPs are informed on the eligibility criteria, entitlements, compensation payment mechanism and project based grievance redress system. • Assist PIU and field staff to maintain updated LAR database and in implementation of Resettlement Plans in the subproject areas before physical or economical displacement and subsequent commencement of works. • Assist PIU to establish and operationalize the project based grievance redress system and coordinate (on regular basis) with the Grievance Redress Committee (GRC) and assist the GRC in delivery of its functions including but not limited to recording, review and tracking of progress on complaints, information dissemination and consultations with the complainants during complaints resolution process. • Assist PIU in review of LAR issues that may emerge during execution of civil works, prepare and implement corrective actions/measure consistent with project safeguards requirements as outlined in the LARF and LARPs. • Track and monitor day to day LAR implementation progress, supervise the junior social development/resettlement staff deployed to assist PIU offices at subproject level, and make adjustments in implementation schedule to achieve the targeted timelines and provide safeguards related input in project implementation monthly progress reports. • Develop and conduct training sessions for PIU and consultant's staff involved in project LAR management to improve their understanding on the ADB’s safeguards requirements and ensure proper understanding and implementation of Resettlement Plans. • Monitor implementation of Resettlement Plans, consolidate LARP implementation progress and prepare quality social monitoring reports periodically (biannual or as provided in the ADB cleared LARPs and other project documents) and share with ADB for review, clearance and disclosure. • Ensure that ensure that four emergency response centers and bus stops with sex-separated toilets and rest spaces for female road users and other gender-sensitive road designs are fully constructed and become operational for those target users.

24. Title: Road Safety Specialist

Experience: 12 years’ relevant experience with proven credential as safety specialist on major road projects.

Qualification:

112 Appendix 2

Bachelor degree in Civil Engineering preferably Master(s) in Civil Engineering / Transportation Engineering / Highway Engineering / Traffic Engineering and a certified safety specialist or equivalent.

Responsibilities: The Road Safety Specialist is part of the services team and will be providing all necessary assistance to the construction supervision team with respect to all safety, health and environmental issues. He will review and approve the safety plans of the contractor and he will monitor the safety of the works and the safety of the traffic diversions and ensure compliance with the regulations.

He / She will also responsible to prepare the road safety report of the design/ design review.

Support Staffs (Technical) No Title Professional Experience Qualification 25 Chief Quantity Surveyor 10 years (B.Sc. Civil Engineer) 26 Chief Surveyors 10 years (DAE Civil) 27 Quantity Surveyors 10 years (DAE Civil) 28 Surveyors 05 years (DAE Civil) 29 Surveyors Design Review 08 years (DAE Civil) (Intermittent) 30 Inspectors (Highways) 03 years (B.Sc. Civil Engineer) 31 Inspectors (Structures) 03 years (B.Sc. Civil Engineer) 32 Material Inspectors 05 years (B.Sc. Civil Engineer) 33 Chief Quantity Surveyor 10 years (B.Sc. Civil Engineer) 34 03 years (DAE Civil) Probably (B.Sc. Lab Tech Civil Engineer) 36 01 years (B.Sc. Civil Engineer) Junior Engineers

37 Junior Social 02 years Master(s) in social science or Development/Resettlement related discipline Staff 37 5 years B.A Computer courses Computer Operators certificate from recognized institute. 38 5 years (DAE Civil) with proven AutoCAD Operator AutoCAD experience 39 5 years Graduation with proven office Administration Assistants experience

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6. Reporting & Documents Requirements 14. Reporting Requirements: The Consultant will prepare and submit to PIU five copies of each of the under mentioned reports. The format of these reports shall be mutually agreed with the PIU. One copy shall be sent directly to the Asian Development Bank together with softcopy:

• Inception Report. The Consultant will submit an Inception Report within one Month after mobilization. This will contain full detail of the consultant's supervision, & contract administration methodology and staff plan with supporting CVs of professional staff and projected monthly billing. • Design Review Report. The consultant will submit a detailed Design Review Report, under the guidance of Team Leader within three months, indicating any deficiencies / improvements required in the detailed design prepared by the Design consultant. The design review will ensure that the construction drawings carry all details necessary for executing the job and shall not result in claims of non BOQ items / additional associated costs. • Monthly Contract Administration Reports. The Consultant will, no later than the 10thof each month, prepare a narrative progress report summarizing: • Construction progress during the month and cumulative to date for each individual contract, drawing specific attention to any major causes of delay (administrative, technical or financial) with details of remedial action taken or recommended to the Employer. • A comparison of actual and forecast expenditure both during the month and cumulative to date for each individual contract, and a record of the status of payment of the Contractors' monthly invoices, of all claims for cost or time extensions, and of actions required of PIU to permit unconstrained works implementation. The Consultant will also advise on the final estimated cost for each individual contract and draw attention to any major changes in the project budget including details of remedial action taken or recommended to the Employer. • Brief on all correspondence exchanged with the contractors particularly relating to contractual clauses, with financial and time implications. • Technical appreciation of any design or quality control problems for each individual contract including details of remedial action taken or recommended to the Employer. • Status of compliance with the Environmental & Resettlement Plans and periodic Social and Environmental Monitoring reports separately with a frequency as provided in the Government endorsed and ADB accepted LARPs and EIAs/IEEs/EMPs for each contract package/subproject executed under Tranches 2 and 3 projects of the CAREC MFF. • Progress of constructing emergency response centers and bus stops along the project section. • Compliance of contractors of each section with requirements related to social risks including educational campaigns to their workers on sexual transmitted infections, human trafficking, and sexual exploitation, abuse, and harassment; provision to their workers of safe and healthy work conditions and sex- separated sanitation facilities at their workcamps; (iii) equality in wages for work of equal value and employment opportunities to be applied to male and female workers, which are included in the civil works contracts. • Annual Management Information Report at the end of each Financial Year: The Consultant will prepare a comprehensive report summarizing all activities

114 Appendix 2

under the services at the end of each Financial Year, and also at other times when considered warranted by either the Consultant or PIU because of delay of the construction works or because of the occurrence of technical or contractual difficulties. Such reports shall summarize not only activities of the Project Engineer/ Manager but also the progress of the Contracts including all contract variations and change orders, the status of the Contractor claims, and brief descriptions of the technical and contractual problems being encountered and other relevant information for each of the ongoing contracts. • Resettlement Monitoring Reports. A quarterly report highlighting the progress on implementation of resettlement, documenting all activities including formal & informal consultation, gender issues, socio economic aspects, child labor, drug trafficking, hygiene & safety and other social aspects. • Technical Reports: The Consultant will produce as necessary technical/ due diligence reports and position papers dealing with project matters during implementation. • Interim Contract Completion Reports: The Consultant will prepare completion report for each contract within 30 days of issuance of Taking-over Certificate/Certification of Completion. This report shall summarize the implementation and financial history of the project. The defects list provided to the contractor and all outstanding claims pending resolution. • Final Project Completion Report: The Consultant will prepare a comprehensive final Completion Report within 90 days after Issuance of the Taking Over Certificate of the last civil works contract. The Consultant will prepare a comprehensive final Completion Report for the project including each of the contracts and shall summarize the method of construction, as built record showing the location and details of all works carried out, all defects and certification of the satisfactory correction of such defects for each of the construction contracts, the construction supervision performed, and recommendations for future projects of similar nature to be undertaken by PIU. A safeguards implementation completion (final) report will also be included as appendix to the final project completion report. • Project Documentary Report: The Consultant has to make documentary of all major activities during constructions as well as that of completed project sections to be submitted towards the end of the project. These should also pertain: • Laying and compaction of various pavement layers; • Operation of Asphalt and Concrete Plants; • Quarry sites and laboratory activities; • Road after completion showing road furniture; • Various important stages in construction of structures; and • Any other major activity involved requiring specific mention. • Roughness Survey Report: The roughness surveys will be carried out at substantial completion in coordination with NHA, before the end of the Defects Notification Period. The Consultant is required to submit his findings along with data in this report. • Settlement of Audit Para’s: The Consultant shall assist for settlement of the Audit Para’s and enquiries (if any) pertain to the Project without any time restriction and remuneration to be made separately on this account. The cost to be incurred may be built in the rates. • Revised PC-1: The Consultant shall prepare the revised PC-1 (if required) of the project (50 copies), before completion of the project, if required by incorporating all changes in the scope of work and, prepare completion report (PC-IV) (10 copies), at the completion of the project.

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• Documents & Manuals Required: The Consultants will prepare following documents to be approved by the Employer for efficient contract administration &construction supervision: • Contract Administration Manual. • Quality Control & Assurance Manual. • Laboratory Manual. • Environmental Monitoring Checklist. • Safeguard Monitoring Check list. • Traffic Diversion Plan and Safety measures: The Construction Supervision Consultant will make ensure to finalize the proper traffic diversion plan of contract and to provide proper guidelines to contractor to maintain smooth traffic flow and to make ensure proper safety measures to save human life during construction activities of the contractor and to avoid any traffic accident during construction. 7. Employer’s Input and Counterpart Personnel 15. Services, facilities and property to be made available to the Consultant by the Employer: Design Reports, Drawings and related data for the sub-projects will be shared with the Consultants. 16. Professional and support counterpart personnel to be assigned by the Employer to the Consultant’s team: The Employer shall establish a functional Project Implementation Unit for support and liaison with the Consultants. 17. Employer will provide the following inputs, project data and reports to facilitate preparation of the Proposals: N/A

8. Miscellaneous 18. Employer's Staff. The Employer has nominated a Program Implementation Coordinating/ Steering Committee to provide guidance and oversight to the Program Management Office & Project Implementation Unit (PIU). The PIU has been established under a General Manager, assisted by Project Director and land acquisition Staff and will be located in the field. 19. Facilities. Facilities for the Engineer and his staff: The Construction Contractor as per contract shall provide, operate and maintain the following facilities for the exclusive use of the Consultants: • Laboratory and Testing Equipment. • Site Office and Residential Accommodation (adequately furnished). • Site Transport. • Survey Equipment. 20. The Consultants are encouraged to familiarize with Construction Work before submitting their proposals. Draft sample documents regarding EMP, Resettlement, and Environment as per the instruction of the Client. 21. Security for the Engineer’s representative and his staff. 22. The Government of Pakistan, as per its policy, shall provide security for the foreign Engineer’s representative and his staff.

116 Appendix 3

Template of Semi-annual Environmental Monitoring Report

Project Number: {XXXXX} {Reporting period: Month Year}

{Full Country Name}: {Project Title} {(Financed by the )}

Prepared by {author(s)} {Firm name} {City, country}

For {Executing agency}

Endorsed by: (staff name of PIU) and signature, submission date

[Subject] [Title] ______

Table of Contents

1.1 Preamble 2 1.2 Headline Information 2

2.1 Project Description 2 2.2 Project Contracts and Management 2 2.3 Project Activities During Current Reporting Period 2 2.4 Description of Any Changes to Project Design 2 2.5 Description of Any Changes to Agreed Construction methods 3

3.1 General Description of Environmental Safeguard Activities 3 3.2 Site Audits 3 3.3 Issues Tracking (Based on Non-Conformance Notices) 3 3.4 Trends 4 3.5 Unanticipated Environmental Impacts or Risks 4

4.1 Overview of Monitoring Conducted during Current Period 5 4.2 Trends 5 4.3 Summary of Monitoring Outcomes 5 4.4 Material Resources Utilisation 5 4.4.1 Current Period ...... 5 4.4.2 Cumulative Resource Utilisation...... 5 4.5 Waste Management 6 4.5.1 Current Period ...... 6 4.5.2 Cumulative Waste Generation ...... 6 4.6 Health and Safety 6 4.6.1 Community Health and Safety ...... 6 4.6.2 Worker Safety and Health ...... 6 4.7 Training 6

5.1 SEMP Review 7

6.1 Good Practice 7 6.2 Opportunities for Improvement 7

7.1 Summary 7 7.2 Recommendations 7

Annexes: Photographs (with date printed): Monitoring data:

[Subject] [Title]

Abbreviations Include list of abbreviations used in the report

Month Year Appendix 3 2

1 INTRODUCTION

1.1 Preamble

1. This report represents the Semi - Annual Environmental Monitoring Review (SAEMR) for INSERT PROJECT NAME. 2. This report is the (insert number of report, i.e. 1st, 2nd etc) EMR for the project.

1.2 Headline Information

3. Include a brief summary of significant outcomes of the project construction process and any specific areas of concern of which ADB should be informed.

2 PROJECT DESCRIPTION AND CURRENT ACTIVITIES

2.1 Project Description

4. Provide a brief description of the project. – this should not vary from one report to the next. 2.2 Project Contracts and Management

5. Provide a list or table of main organisations involved in the project and relating to Environmental Safeguards. This should include lender, borrower, PIU, Main Contractor/s and significant sub-contractors, environmental staff of various organisations should be named, and contact details provided.

6. Provide a description of how the contracts are being managed and names of key personnel.

2.3 Project Activities During Current Reporting Period

7. Provide an outline of major activities which have been carried out during the current reporting period. Provide adequate information so the reader can understand what has been taking place on site. Include photographs (with date stamp) of activities where possible and relevant. Place bulk photographs into an annex to the main report or a separate photographic record. 8. Where multiple work sites are involved provide information on which work sites have been active during the current reporting period. Provide map of work site areas if relevant.

9. Provide details (chart) of worker numbers (maximum, Minimum) in the current reporting period and anticipated changes in staff in following period

10. Highlight any significant new activities commenced during the current reporting period.

11. For the above make maximum use of charts, images and tables.

2.4 Description of Any Changes to Project Design

12. Describe any changes to the project design from that which was assessed in the Impact Assessment phase of the project and is set out in the Initial Environmental

[Subject] [Title]

Examination/Environmental Impact Assessment. If none have taken place, please state – No changes.

13. Note if significant changes have occurred the PIU should have already informed ADB of this and made a decision on the need for updates to the EIA/IEE and/or Environmental Management Plans

2.5 Description of Any Changes to Agreed Construction methods

14. Provide a description and reason for changes to any construction processes, for example, blasting of rock rather than excavation, open channel rather than thrust boring at road crossings.

3 ENVIRONMENTAL SAFEGUARD ACTIVITIES

3.1 General Description of Environmental Safeguard Activities

15. Please provide a summary of the routine activities undertaken by environmental safeguard staff during the current reporting period. This should include the work undertaken by the contractor’s environmental manager, the Environmental Supervisor and any informal visits by the PIU environmental staff.

3.2 Site Audits

16. Please provide details (table form preferred) of any formal audits undertaken by environmental safeguard process staff during the current reporting period. This would include Contractors Environmental Manager, Environmental Supervisor, PIU Staff and ADB staff during review missions.

17. Information required includes: • Date of Visit • Auditors Name • Purpose of Audit • Summary of any Significant Findings • Cross reference to Audit Report which should be included as an annex.

18. Summarise Findings of Audits undertaken in the current period, compare with previous periods and identify any trends or common issues.

3.3 Issues Tracking (Based on Non-Conformance Notices)

19. Provide an overview and description of issues tracked during the current period.

20. Provide commentary on key statistics based on graphs and tables which can be copied from the Environmental Safeguards Issues Tracing Workbook. For example

Table 3-1 Summary of Issues Tracking Activity for Current Period

Summary Table Total Number of Issues for Project 6

Month Year 4

Number of Open Issues 1 Number of Closed Issues 5 Percentage Closed 17% Issues Opened This Reporting Period 5 Issues Closed This Reporting Period 4

Figure 3-1 - Summary of Issues by Non-Conformance

21. Use data from workbook as required.

3.4 Trends

22. Use information from previous period reports and the current period information to identify trends in issues. For example –

Quarterly Report No Total No of Issues % issues Closed % issues closed late 1 5 87 0 2 18 56 15 3 59 23 26

23. Provide a commentary on the trends, explain why they may be occurring and in the case of negative trends explain what steps have been taken to make corrections.

24. Provide a copy of all NCN’s for all environmental major Non-Conformances in an annex. If none state this.

3.5 Unanticipated Environmental Impacts or Risks

[Subject] [Title]

25. Document any unanticipated environmental impacts and risks which have been identified in the current period (as a reminder, these are impacts or risks which were not identified in the Impact Assessment process). State what actions were taken to mitigate the impacts and risks, were these successful.

4 RESULTS OF ENVIRONMENTAL MONITORING

4.1 Overview of Monitoring Conducted during Current Period

26. Provide a commentary on what environmental measurements have been undertaken during the current reporting period. Highlight any areas where agreed monitoring has not taken place.

27. Include sub sections for the report on those environmental media which have been measured, for example:

• Noise • Air Quality • Water Quality

28. The sections should present highlights of the outcomes of the monitoring focussing on a comparison of the results with the agreed standards as set out in the Specific Environmental Management Plan and/or Monitoring Plan.

29. In particular make clear where exceedances in the standards have occurred and provide reasons and actions which have been implemented to correct – refer to relevant NCN as appropriate.

30. Detailed monitoring results should be presented as an annex.

4.2 Trends

31. Based on the current and past periods of monitoring identify and discuss any trends which may be developing.

4.3 Summary of Monitoring Outcomes

32. Provide any recommendations on the need for additional monitoring, or requests for ceasing/altering monitoring if activities have been completed or monitoring is showing no significant effects over long period.

4.4 Material Resources Utilization

4.4.1 Current Period

33. Provide values (tables, graphs etc) for current reporting period of utilisation of electricity, water and any other materials which have been include in the SEMP for monitoring.

4.4.2 Cumulative Resource Utilization

Month Year 6

34. Provide values (tables, graphs etc) for cumulative resource utilisation of power water etc, for whole project life. Identify trends or significant changes and provide reasons for any such changes.

4.5 Waste Management

35. Provide summary of waste management activities during the current period. Provide waste contractors/s names and location of waste sites.

4.5.1 Current Period

36. Provide breakdown using graphs, table etc, of waste streams during current reporting period. This information should include

• Type of Waste (description and classification – e.g. hazardous – non-hazardous; • Waste Source – what activity generated the waste and where; • Quantity of waste generated; • Treatment/disposal route – provide information on quantities of waste reused, recycled and sent to landfill or incineration; and • Final disposal sites for waste.

37. Provide commentary on results.

4.5.2 Cumulative Waste Generation

38. Using the above bullet points for waste develop cumulative waste generation results.

39. Discuss trends and provide suggestions for waste reduction, increase in reuse and recycling if possible.

4.6 Health and Safety

4.6.1 Community Health and Safety

40. Provide information on any incidents which have occurred during the reporting period which resulted in or could have resulted in Community Health and Safety issues. Include within this section traffic accidents.

4.6.2 Worker Safety and Health

41. Provide detailed statistics on accident rates, including Lost Time Incidents, Accidents and near misses.

42. Provide information on safety campaigns conducted during the reporting period.

4.7 Training

43. Provide information on all environmental safeguard related training activities undertaken in this period and cumulatively for project life to date. These may include specific training of environmental staff, HSE inductions of site workers etc.

[Subject] [Title]

44. Discuss the need for additional training and what training is planned for coming quarter.

5 FUNCTIONING OF THE SEMP

5.1 SEMP Review

45. Provide a commentary on the SEMP in terms of the ability of the contractor to implement fully the requirements set out. Highlight any areas where the contractor has not been able to implement mitigation or monitoring measures.

46. Is the SEMP effective, are mitigation measures set out still appropriate and are they working as intended – do they need changing?

47. Are there better alternative mitigation measures?

48. Can some mitigation measures be reduced or removed as the specific risk identified in the IEE/EIA and/or SEMP has not materialised?

49. Provide a table of requests for changes to the current mitigation measures for consideration by ADB. Note you can send these at any time during the project, there is no need to wait until the quarterly reporting period to be completed. If PIU has supplied requests to ADB, these should be listed along with ADB response. Where changes (additions/deletions and modifications) of mitigation or monitoring measures have been approved, the PIU shall ensure that the SEMP is updated to reflect these changes.

6 GOOD PRACTICE AND OPPORTUNITY FOR IMPROVEMENT

6.1 Good Practice

50. Provide an overview with charts, images etc of examples of continuing good practice for the project. State why these have been implemented and how they are reducing environmental impacts or risks.

6.2 Opportunities for Improvement

51. Identify any areas which may be outside of the formal NCN process, but which changes to construction techniques, mitigation etc would result in an improvement in environmental, health and safety performance of the project.

7 SUMMARY AND RECOMMENDATIONS

7.1 Summary

52. Provide a summary of the effective implementation of Environmental Safeguards during the reporting period and for the overall project construction period to date.

7.2 Recommendations

53. Provide any recommendations for consideration by the ADB for changes to the Environmental Safeguarding process for the project.

Month Year