Project Administration Manual Project Number: 37559-043 MFF Number: 0002 Loan Number: L540-PAK (Tranche 2) November 2014 Islamic Republic of Pakistan: National Highway Development Sector Investment Program Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. National Highway Authority (NHA) is wholly responsible for the implementation of ADB financed transport sector projects and specifically the National Highway Development Sector Investment Program, as agreed jointly between Ministry of Finance (MOF) and ADB, and in accordance with Government’s and ADB’s policies and procedures. ADB staff is responsible to support 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 recipient and ADB have agreed to the PAM and ensure consistency with the loan project agreements. Such agreement has been reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM on one hand, and the loan and project agreements on the other hand, the provisions of the loan and project agreements shall prevail. After ADB Board approval of the investment program's report and recommendations of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM. Contents Main Text 1 I. Introduction 1 II. Purpose 1 III. Key Persons Involved in the Project 2 IV. Processing History 3 Project Definition 4 I. Sponsors, Stakeholders and External Agencies 4 II. MFF Impact and Outcomes – Tranche 2 4 III. MFF Tranche 2 Outputs 4 Project Management 5 I. Project Organization Structure 5 II. Roles and Responsibilities 7 Safeguards Plan 9 I. Environment 9 II. Involuntary Resettlement 16 III. Indigenous People 16 IV. Other Safeguards 22 Financing Plan 23 I. ADB Financing, Fund Flow and Disbursement Arrangements 23 II. Allocation Table 24 III. Government Financing and Fund Flow 25 IV. Other Financiers Investment (Cost) Plan 26 I. Detailed Cost Estimate 26 II. Forecast of Cost to Complete 26 Procurement Plan 27 I. Procurement Plan and Thresholds 27 II. Detail Contract Packages 28 III. Advance Action 29 Implementation Plan 29 I. Responsibility Allocation by Activity 29 II. Monitoring and Evaluation Report 29 Performance Monitoring and Evaluation 30 I. Monitoring and Evaluation Report 30 Major Covenants I. Legal Covenants II. Financial Covenants III. Safeguards Covenants Appendixes 32 • Implementation Gantt Charts for Tranche 2 projects • LARP for Sukkur Jacobabab • External Monitoring Agency Report Outline 1 Main Text I. Introduction 1. This Project Administration Memorandum (PAM) describes the project management and implementation arrangements for Tranche 2 of the National Highway Development Sector Investment Program (NHDSIP). 2. The Periodic Financing Request (PFR) for Tranche 2 was approved on 26 August 2009. The PFR consists of a single loan for $230 million from Ordinary Capital Resources. 3. The loan and the project agreements were signed on 2 September 2009 and the Loan became effective on 21 September 2009. II. Purpose 4. The PAM contains project data and information that allows the Borrower, executing agency (EA), implementing agency, and ADB to monitor the project implementation and evaluate the project’s outputs and outcomes. 5. The PAM includes the following: • Major aspects of project implementation; • Roles and responsibilities of the EA, implementing agency, consultants, and ADB for the various actions required for satisfactory project implementation; • Design and monitoring framework, including subsequent revisions that confirm the impact, outcome, outputs, activities, inputs, performance targets and indicators, assumptions, and risks; • Framework and checklist for monitoring progress to allow remedial actions and midstream modifications to meet project objectives; • Format and instructions for the EA and implementing agency to periodically update the project performance report in its current revised format; and • References to ADB’s Anticorruption Policy, indicating how ADB may be contacted about allegations of corruption and fraud. 2 III. Key Persons Involved in the Project A. ADB Staff Name Position/Office Contact Xiaohong Yang Director Tel. No. +63-2 632 6765 Transport and Communications Division Fax No. -63-2 636 2428 Central and West Asia Regional Email: [email protected] Department Werner Liepach Country Director Tel. No. +92 51 282 5011 ADB’s Pakistan Resident Mission Fax No. -92 51282 3324 Email: [email protected] Dong-Soo Pyo Lead Transport Specialist Tel. No. +63-2 632 6807 Transport and Communications Division Fax No. +63-2 636 2428 Central and West Asia Regional Email: [email protected] Department Jiangbo Ning Senior Transport Specialist Tel. No. +92 51 282 5011 ADB Pakistan Resident Mission Fax No. +92 51282 3324 Email: [email protected] Zaigham Ali Aqbar Project Officer (Transport) Tel. No. +92 51 282 5011 Naqvi Fax No. +92 51282 3324 Email: [email protected] Carmelina R. Project Analyst Tel. No. +63-2 632 4444 Tabernilla Fax No. -63-2 636 2428 Email: [email protected] B. Executing Agency Name Position/Office Contact Mr. Shahid Ashraf Tarar Chairman, National Tel. No. +92-15-9260717 Highway Authority of Fax No. +92-51-9260404 Pakistan (NHA) Email: TBA Mr. Raja Nowsherwan Member (Planning) Tel. No. 092-015-8351702 Fax No. +92-51-9260418 Email: TBA Mr. Imran Khan Yusafzai General Manager (ADB Tel. No. 092-051-9266722 Projects) Fax No. +92-51-9261139 E-mail: [email protected] Brig. Laiq Ali Khan (Retd.) Chief Coordinator (Aided Projects) [email protected] Member Engineer Coordinator Mr. Mukhtar Ahmad Durrani General Manager (P&CA) Tel. No. 092-051-8351727 Fax No. +92-51-926041 Email: [email protected] Mr. Ejaz Jaffar General Manager EALS Tel. No. 092-051-8351506 3 Name Position/Office Contact Fax No. 092-051-9261139 Email: [email protected] Maj. Naseem Afzal Baz Director (Design) Tel. No. 092-051-8351911 Fax No. 092-051-9260106 E-mail: TBA Mrs. Aamera Riaz Deputy Director (EALS) Tel. No. 092-0518351507 Fax No. 092-051-9261139 E-mail: Mr. Sarmad Saud Deputy Director (P&CA) Tel. No. 092-051-8351719 Fax +92-51-9260419 E-mail: TBA IV. Processing History Event Date 1. Concept Clearance 2005 2. Fact-finding Mission 19 May to 06 Jun 2005 3. Management Review Meeting 4. SIEE/SWIA Circulation 30 June 2005 5. Appraisal Mission 25 Jul to 12 Aug 2005 6. Staff Review Committee Meeting 7. Loan Negotiations (MFF & Project1) 8. Board Approval 13 Dec 2005 9. Signing of Framework Financing Agreement (FFA) 29 Oct 2005 10. Loan and Project Agreements signing for Project 1 14 Jun 2006 11. Last Date to submit remaining PFR 31 Dec 2011 12. Loan Effectivity Date for Project 1 27 Jul 2006 13. Estimated Project 1 Completion Date 30 Jun 2010 14. Loan Closing Date for Project 1 31 Dec 2010 15. Periodic Financing Request 2 submission 26 Mar 2009 16. VP Approval for Loan Negotiations 7Aug 2009 17. President's Approval 26 Aug 2009 18. Loan and Project Agreements signing for Project 2 2 Sep 2009 19. Loan Effectivity Date for Project 2 21 Sep 2009 20. Estimated Project 2 Completion Date 31 Dec 2013; 31 Dec 2013 21. Loan Closing Date for Project 2 31 Dec 2014 4 Project Definition I. Sponsors, Stakeholders, and External Agencies (i) Sponsors: • Ministry of Finance, Economic Affairs Division, Islamic Republic of Pakistan • National Highway Authority (ii) Stakeholders: • National Highway Authority • Affected persons (i.e., those directly affected by the construction of the road through land acquisition, resettlement or business disruption) (iii) External Agencies • Ministry of Communications • Ministry of Economic Affairs and Statistics • Ministry of Planning • Board of Revenue • Provincial Environmental Agency II. MFF Impact and Outcomes – Tranche 2 6. Impact: Improved economic growth along with increased median per capita income around project area, as a result of reduced transportation cost. 7. Outcome: Efficiency gain for road users along N50 and N65, with an increased in the average freight traffic speed by 50% from 25 km/hr, reduced freight operating cost by 15% from Rs 17.25/km and reduction of passenger vehicle operating cost by 10% from Rs 14.10/km. III. MFF Tranche 2 Outputs 8. Tranche 2 output – Improved national highway network infrastructure and improved road operations and maintenance system: (i) 225 km of roads along N50 & N65 by 31 December 2013. 5 Project Management I. Project Organization Structure (a) Project Organization Structure National Highway Authority Executive Board Investment Program Coordinating Committee (IPCC) • Chairman, NHA • Member Finance • Member Planning • Member Construction • Member Operations • Member Aided Projects Investment Program Management Office Policy Formulation and Coordination Office NHA Aided Projects NHA Member (Planning) • General Manager (ADB-NHDSIP) • • Sr. Transport / Institutional Expert (Team General Manager (Planning) Leader) • Principal Coordination Officer • • Road Safety Expert GM (Design) • PPP Financial / Legal Expert • GM (Environment & Lands) • GM (P&CA) • Transport Economist • Financial