Project Administration Manual Project Number: P52298-001 Loan Number: LXXXX March 2020 India: Maharashtra State Road Improvement Project ABBREVIATIONS ADB – Asian Development Bank APFS – audited project financial statements CRN – core road network EMP – environmental management plan EMOP – environmental monitoring plan EWCD – elderly–women–children–differently abled GAP – gender action plan GRM – grievance redress mechanism IEE – initial environmental examination km – kilometer LFIS – Loan Financial Information System MPWD – Maharashtra Public Works Department NGO – nongovernment organization PAM – project administration manual PIU – project implementation unit PMS – project management services PMU – project management unit SPS – Safeguard Policy Statement SOE – statement of expenditure TOR – terms of reference CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 1 A. Project Readiness Activities 1 B. Overall Project Implementation Plan 3 III. PROJECT MANAGEMENT ARRANGEMENTS 4 A. Project Implementation Organizations: Roles and Responsibilities 4 B. Key Persons Involved in Implementation 5 C. Project Organization Structure 6 IV. COSTS AND FINANCING 7 A. Cost Estimates Preparation and Revisions 7 B. Key Assumptions 7 A. Detailed Cost Estimates by Expenditure Category 8 B. Allocation and Withdrawal of Loan Proceeds 9 C. Detailed Cost Estimates by Financier 10 D. Detailed Cost Estimates by Outputs 11 E. Detailed Cost Estimates by Year 12 F. Contract and Disbursement S-Curve 13 G. Fund Flow Diagram 14 V. FINANCIAL MANAGEMENT 15 A. Financial Management Assessment 15 B. Disbursement 16 C. Accounting 17 D. Auditing and Public Disclosure 18 VI. PROCUREMENT AND CONSULTING SERVICES 19 A. Advance Contracting and Retroactive Financing 19 B. Procurement of Goods, Works, and Consulting Services 19 C. Procurement Plan 20 D. Consultant's Terms of Reference 20 VII. SAFEGUARDS 20 A. Environmental Safeguards 20 B. Social Safeguards 21 C. Implementation Arrangements for Environment and Social Safeguards 22 D. Grievance Redress Mechanism 23 VIII. GENDER AND SOCIAL DIMENSIONS 24 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 27 A. Project Design and Monitoring Framework 27 B. Monitoring 27 C. Evaluation 29 D. Reporting 29 E. Stakeholder Communication Strategy 30 X. ANTICORRUPTION POLICY 31 XI. ACCOUNTABILITY MECHANISM 31 XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 31 APPENDIXES A. Design and Monitoring Framework B. Procurement Plan C. Terms of Reference for Consulting Services: Authority Engineer D. Terms of Reference for Consulting Services: Project Management Services E. Terms of Reference for Consulting Services: Resettlement and Gender Action Plan Implementation F. Gender Action Plan Monitoring and Reporting Format Project Administration Manual Purpose and Process 1. The project administration manual (PAM) 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 and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. 2. The Maharashtra Public Works Department (MPWD), through the project management unit, 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 government and ADB. ADB staff is responsible for supporting implementation, including compliance by MPWD of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. 3. At loan negotiations, the borrower and ADB have agreed to the PAM and ensured consistency with the loan agreement. Such agreement is reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the loan agreement shall prevail. 4. 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 PAM. I. PROJECT DESCRIPTION 1. The Government of India requested assistance from the Asian Development Bank (ADB) to support the improvement of state highways and major district roads in the state of Maharashtra. The project will upgrade and maintain about 450 kilometers (km) of state roads forming part of the core road network (CRN) in Maharashtra, which will enhance transport accessibility and efficiency, and improve the sustainability of the road network, in line with the state’s Road Development Plan 2001–2021.1 The project will involve upgrading state roads to a two-lane standard and performance-based maintenance contracts to maintain the improved road assets for 5 years after construction. The project also includes initiatives to build institutional capacity within the Maharashtra Public Works Department (MPWD), the project executing agency, focusing on strengthened sustainability and road safety practices. 2. The project is aligned with the following impacts: connectivity between industrial areas, agricultural areas, administrative headquarters, and economic centers of Maharashtra enhanced (footnote 1). The project will have the following outcome: transport accessibility, efficiency, sustainability, and safety of the CRN in Maharashtra improved. 3. Output 1: State highways and major district roads of the core road network upgraded and maintained. The project will (i) upgrade about 25 km of major district roads and 425 km of state highways with climate change adaptation features; (ii) commence road maintenance using performance-based contracts for 450 km of roads; and (iii) install road safety features friendly to the elderly, women, children, and people with disabilities at appropriate locations. 4. Output 2: Capacity in road safety and maintenance increased. The loan will finance (i) development and adoption of a maintenance planning methodology for the project roads and other CRN roads; (ii) piloting and establishment of a systematic approach to road safety audits for 200 km of state highways; (iii) training in climate change and disaster-resilient features applicable to road design for MPWD project staff, including women staff; (iv) training in road safety auditing for MWD project staff, including for women staff; and (v) increased road safety awareness among contractors’ personnel, including women personnel. II. IMPLEMENTATION PLANS A. Project Readiness Activities 5. Procurement of civil works and recruitment of authority engineer consultants and a project management services (PMS) consultant are being undertaken under advance contracting and retroactive financing to enhance project readiness. The project readiness activities and the indicative timelines are presented in Table 1. Table 1: Project Readiness Activities Year Month Indicative Milestones Responsibility 2019 January Preparation of bidding documents and TOR for consulting services MPWD April Procurement of civil works MPWD Procurement of consulting services MPWD 1 Government of Maharashtra, Public Works Department. 2012. Road Development Plan 2001–2021. Mumbai. 2 Year Month Indicative Milestones Responsibility July Concept clearance ADB October Fact-finding mission ADB 2020 February Staff review meeting ADB March Loan negotiations ADB/GOI/MPWD Award of civil works contracts MPWD Award of authority engineer consulting services MPWD April ADB Board approval ADB Loan signing ADB/GOI/MPWD Award of all consulting services MPWD Government legal opinion provided GOI/MPWD May Loan effectiveness ADB ADB = Asian Development Bank, GOI = Government of India, MPWD = Maharashtra Public Works Department, TOR = terms of reference. Source: Asian Development Bank. 3 B. Overall Project Implementation Plan 6. The project implementation chart recording key implementation activities on a quarterly basis is provided in Table 2. The activities will be updated annually and submitted to ADB with contract and disbursement projections for the following year. Table 2: Gantt Chart of Implementation Activities 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Activities 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 Project Preparation Project preparation, processing, and approval by ADB Loan signing and effectiveness Output 1: State highways and major district roads of the core road network upgraded and maintained 1.1 Procurement of civil works 1.2 Resettlement and rehabilitation activities 1.3 Recruitment and implementation of authority engineera 1.4 Civil works construction 1.5 Commencement of road maintenance activitiesb Output 2: Capacity in road safety and maintenance increased 2.1 Recruitment and implementation of project management services consultants for road asset management, road safety, financial management and safeguards 2.2 Delivery of training on climate change and disaster resilient features 2.3 Completion and piloting of road safety audits 2.4 Delivery of capacity building in road safety auditing Project Completion Project completion reporting Financial closure of loan account ADB = Asian Development Bank, Q = quarter. a Authority engineer inputs