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Facility Administration Manual

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Facility Administration Manual Appendix 4 Facility Administration Manual Project Number: 48226 MFF Number: 0104 Loan Numbers: 3611 / xxxx September 2018 India: Second Rural Connectivity Investment Program ABBREVIATIONS ADB – Asian Development Bank BER – bid evaluation report CAG – Comptroller and Auditor General CGRRDA – Chhattisgarh Rural Road Development Agency CPF – community participation framework DMF – design and monitoring framework DPR – detailed project report EARF – environmental assessment and review framework EMP – environmental management plan FAM – facility administration manual FFA – framework financing agreement FMA – financial management assessment GAP – gender action plan GOI – Government of India IEE – initial environmental examination ISC – institutional strengthening consultants km – kilometer MFF – multitranche financing facility MORD – Ministry of Rural Development MPRRDA – Madhya Pradesh Rural Road Development Authority NCB – national competitive bidding NRIDA – National Rural Infrastructure Development Agency NRRDA – National Rural Roads Development Agency OSRRA – Odisha State Rural Road Agency OMMAS – online management, monitoring and accounting system PIC – project implementation consultant PIU – project implementation unit PMGSY – Pradhan Mantri Gram Sadak Yojana PPMS – project performance management system PRI – panchayat raj institution RCIP – Rural Connectivity Investment Program RCTRC – Rural Connectivity Training and Research Center RRNMU – Rural Road Network Management Unit RSS – Rural Road Sector SOE – statement of expenditure SRRDA – state rural road development agency TA – technical assistance TSC – technical support consultant WBSRDA – West Bengal State Rural Development Agency CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 3 A. Project Readiness Activities 3 B. Overall Project Implementation Plan 4 III. PROJECT MANAGEMENT ARRANGEMENTS 6 A. Project Implementation Organizations: Roles and Responsibilities 6 B. Key Persons Involved in Implementation 7 C. Project Organization Structure 10 IV. COSTS AND FINANCING 11 A. Cost Estimates Preparation and Revisions 11 B. Key Assumptions 11 C. Detailed Cost Estimates by Financier 13 D. Detailed Cost Estimates by Year 16 E. Allocation and Withdrawal of Loan Proceeds 19 F. Contract and Disbursement S-Curve 19 G. Fund Flow Diagram 22 V. FINANCIAL MANAGEMENT 23 A. Financial Management Assessment 23 B. Disbursement Arrangements for ADB Funds 28 C. Accounting, Auditing and Public Disclosure 29 VI. PROCUREMENT AND CONSULTING SERVICES 31 A. Procurement Capacity Assessment of Investment Program States 31 B. Advance Contracting and Retroactive Financing 31 C. Procurement of Works 32 D. Procurement Plan 33 E. Consultants’ Terms of Reference 33 VII. SAFEGUARDS 34 A. Environment 34 B. Social 35 VIII. GENDER AND SOCIAL DIMENSIONS 37 A. Gender 37 B. Health and Labor 38 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 40 A. Program Design and Monitoring Framework 40 B. Monitoring 40 C. Evaluation 43 D. Reporting 43 E. Stakeholder Communication Strategy 44 X. ANTICORRUPTION POLICY 46 XI. ACCOUNTABILITY MECHANISM 47 XII. RECORD OF CHANGES TO THE FACILITY ADMINISTRATION MANUAL 48 APPENDICES A. Procurement Plan – Project 1 and Project 2 B. Terms of Reference: Project Implementation Consultant C. Terms of Reference: Technical Support Consultant D. Terms of Reference: Institutional Strengthening Consultant E. Terms of Reference: Road Safety Expert F. Technical Bid Evaluation Report Template G. Financial Bid Evaluation Report Template H. Contract Awards Form I. Gender Action Plan Progress Update Template – Project 1 and Project 2 J. Design and Monitoring Framework for Project 1 and Project 2 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 Government of India and 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 Ministry of Rural Department through the National Rural Infrastructure Development Agency, the executing agencies at the national level, and the state governments of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal, through the respective project executing and implementing agencies, are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by the executing and implementing agencies 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 framework financing agreement (FFA) and loan and project agreements. 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 and project agreements, the provisions of the loan and project agreements 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 government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the FAM. I. PROJECT DESCRIPTION 1. The Second Rural Connectivity Investment Program (the investment program) will improve rural connectivity in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal in India, facilitating safer and more efficient access to livelihood and socioeconomic opportunities for the rural communities.1 With the assistance of the Asian Development Bank (ADB), the investment program will construct rural roads to all-weather standard for unconnected habitations and upgrade rural roads linking to the states’ district centers for an aggregate length of 12,000 kilometers (km). For the investment in physical infrastructure to be effective and sustainable, the investment program will strengthen the institutional capacity of the implementing agencies in road safety and road maintenance. 2. The impact of the investment program will be mobility and accessibility in India improved. The outcome will be rural connectivity in the five investment program states improved. 3. The outputs of the investment program will be (i) rural roads in the investment program states improved, (ii) institutional capacity of the implementing agencies of the Prime Minister’s Rural Road Program or Pradhan Mantri Gram Sadak Yojana (PMGSY) strengthened, and (iii) operation and maintenance of PMGSY roads sustained. In particular, the physical component includes the construction and upgrading of rural roads spanning 2,000 km in Assam, 2,000 km in Chhattisgarh, 4,000 km in Madhya Pradesh, 3,000 km in Odisha, and 1,000 km in West Bengal. The capacity strengthening component includes the training of PMGSY engineers and providing support to rural road network management units (RRNMU) and the rural connectivity training and research centers (RCTRC) in road safety and road maintenance in the investment program states. 4. Project 1 of the investment program will deliver the following outputs: (i) Rural roads in the investment program states improved. This includes (a) 3,145.67 km of rural roads constructed to all-weather standards under PMGSY-I (976.99 km in Assam; 1,571.28 km in Odisha; and 597.40 km in West Bengal); and (b) 3,108.59 km of rural roads upgraded under PMGSY-II (1,001.08 km in Chhattisgarh and 2,107.51 km in Madhya Pradesh). (ii) Institutional capacity of the PMGSY implementing agencies strengthened. The RCTRCs will conduct and manage the training programs for 2,000 PMGSY engineers, including the project implementation units (PIUs) and RRNMU staff, panchayat raj institution staff, consultants, and contractors in the investment program states.2 (iii) Operation and maintenance of the PMGSY roads sustained. This includes technical support for the RRNMUs to roll out road safety audits and road maintenance. 1 ADB. 2014. Technical Assistance to India for the Second Rural Connectivity Investment Program. Manila. ADB provided project preparatory technical assistance for the Second Rural Connectivity Investment Program. 2 A panchayat is a body of directly elected people responsible for development activities in an area. There are three levels: gram panchayat at the village level, intermediate panchayat at the block level, and zilla panchayat at the district level. These are collectively called the panchayat raj institution. In some states, the institution is involved in rural road maintenance. 2 5. Project 2 of the investment program will deliver the following outputs: (i) Rural roads in Madhya Pradesh improved. This includes at least 2,800 km of rural roads upgraded under PMGSY-II in Madhya Pradesh. (ii) Institutional capacity of the PMGSY implementing agencies strengthened. The RCTRCs will conduct and manage the training programs for 500 PMGSY engineers, including the project implementation units (PIUs) and RRNMU staff, panchayat raj institution staff, consultants, and contractors in the investment program states (footnote 2). (iii)
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