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INDIA: Andhra Pradesh Disaster Recovery Project (APDRP)Implementation Support & Review Mission

February17-20, 2020Aide Memoire

I. INTRODUCTION

1. The World Bank mission visited the state of Andhra Pradesh between February 17-20, 2020 to carry out an Implementation Support & Review mission for the Andhra Pradesh Disaster Recovery Project (APDRP). The mission undertook field visits and met key officials (a list of key officials met is provided in Annex 1).On February 19, 2020, the mission had a wrap-up meeting chaired by the Chief Secretary, Government of Andhra Pradesh (GoAP) Ms.Nilam Sawhney, wherein mission findings and follow-up actions were discussed. The mission would like to express its sincere appreciation to the Government of Andhra Pradesh for their time, support and constructive discussions. The Aide Memoire summarizes the mission’s observations and agreements and has been endorsed by the Bank management.

II. PROJECT DATA AND RATINGS

Table 1: Key Project Data and RatingsProject Data US$Original Credit 250 millionRevised Credit 201.38 millionTotal Disbursement 89.5 millionDisbursement in FY 20millionTotal Commitments (credit share) 175 millionClosing Date September 30, 2020

Project Ratings Previous CurrentPDO Moderately Unsatisfactory Moderately UnsatisfactoryIP Moderately Unsatisfactory Moderately SatisfactoryComponent 1: (Resilient electrical network) Unsatisfactory Unsatisfactory

Component 2: (Restoration of connectivity and shelter infrastructure) Satisfactory Satisfactory

Component 3: (Shore Protection Works and Restoration of Beach) Moderately Unsatisfactory Moderately Unsatisfactory

Component 4: Restoration of environmental services/facilities and livelihood support

Moderately Satisfactory Moderately Satisfactory

Component 5: Capacity building and technical support for DRM Moderately Satisfactory Moderately Satisfactory

Project Management Moderately Satisfactory Moderately SatisfactoryProcurement Satisfactory Moderately SatisfactoryFinancial Management Moderately Unsatisfactory Moderately UnsatisfactoryEnvironment Management Moderately Satisfactory Moderately SatisfactorySocial Management Moderately Unsatisfactory Moderately Satisfactory

III. IMPLEMENTATION PROGRESS AND KEY FINDINGS

Project Development Objective (PDO) and Implementation Progress2. The PDO is “to restore, improve, and enhance resilience of public services, environmental facilities, and livelihoods in targeted communities, and to enhance the capacity of state entities torespond promptly and effectively to an eligible crisis or emergency.” The Project has disbursed

merely44.5% of the IDA credit of US$201.38 million and committed 87%, with only six months to go before the project closes. The progress towards achieving the PDO remains Moderately Unsatisfactory. However, implementation progress has been upgraded to Moderately Satisfactory on account of the GoAP’s follow up on recommendations from the Deep Dive and TPRMs including cancellation of savings of US$ 48.62 million through two restructurings - October and November 2019 and clearance of all outstanding payments. However, the following issues continue to remain:a. delay in payments to contractors and consultants;b. significant delays in progress of component 1 (for all packages) and component 5 (emergency equipment and consultancies); andc. no decision on the request for extension of the closure date.

The PMU and PIUs have been advised to take immediate measures for awarding the remaining contracts and ensuring completion of works in time.

3. After the restructurings that reduced the credit amount to US$201.38, the Mission advised GoAP to formally adjust the result targets to align with the cancelled activities. The mission reiterated that any expenditure incurred after current project closing date of September 30, 2020 would be regarded as ineligible expenditure. To that effect, the mission advised the GoAP to close all procurements by April 2020 end, and keep appropriate provision in the State budget, to meet the cost of procurements undertaken after the project closing date.

Component 1: Resilient electrical network - US$120 million4. Overall, the implementation progress of Component 1 remains Unsatisfactory, primarily due to continued significant delays in physical work and payments to contractors. The component has four packages for underground cabling in Visakhapatnam totalling INR 789 Cr. Payments for all contracts were delayed after initial payments and for several bills after April 2019; and started only in December 2019. Works were stalled by contractors because of delay in payment. Although all contractors have resumed work, the progress is slow in all packages. Contractors are yet to mobilize additional required manpower & materials for timely completion. The physical progress of the four packages is Package 1 (49.4%), 2 (59.2%), 3 (50%) and 4 (25%); cumulative 44%. Although the current extensions for all packages have been done till July 2020, actual completion is likely to go beyond project closure. Dispute over Goods and Services Tax (GST) (whether the GST levied should be 12% or 18%) and retention money are yet to be resolved by the government. The project has been strongly advised to (i) create fortnightly targets (including extra working hours, night working) for contractors, to be closely monitored by the PMC and APEPDCL using MS Project and ensure there are no further delays;(ii) immediately enhance labor and machinery for completing works; (iii) resolve GST and retention money issues on priority, and (iii) ensure timely processing of bills and payments to contractors. Given these issues, the PMU has been advised to revise their projections for the number of accounts that can be completed by project closing.Detailed observations and suggestions for improvement on the component are given in Annexes.

Component 2: Restoration of connectivity and shelter infrastructure - US$105 million5. Overall, the implementation progress of Component 2 is retained as Satisfactory due to adequate progress made in completing the works packages within the timeframe. The major findings for sub-components are as follows (the details are summarized in Annexes):

6. Sub-component 2.1: Restoration of rural roads and cyclone shelters: This sub-component is being implemented by Panchayat Raj Engineering Department (PRED). The road works covering 90 packages comprising about 544 km covering 171 rural roads and 4 bridges are awarded. Out of which 74 packages consisting of 146 roads covering a length of 443 km are reported as substantially completed as on date, and the balance 10 packages are planning to complete by June 2020. Of 4 bridge packages, 3 packages are to be completed by September 2020, and one bridge is expected to

go beyond the project completion. Completion certificate are issued for 30 packages. Mission advises to attach check list to the completion certificate duly indicating the salient features, inventory, status of as built drawings and other aspects; and issue completion to all completed roads by April30, 2020.

7. Sub-component 2.2: Restoration of Major District Roads (MDR):This sub-component is implemented by Roads and Bridges Department (RBD) and supports permanent restoration, reconstruction, strengthening and widening (mostly single-lane to double-lane) of the MDRs, including provision of cross-drainage structures. Of the 21 packages awarded (20 roads covering a length of 220 km and one Bridge work package costing INR 219.62 Cr),18 are reported as substantially completed. Completion certificate are issued for 15 packages and 3 balance agreed to be issued by April30, 2020. Status of actions agreed during the previous mission, agreed actions during this mission and field observations are given in Annexes.

Component 3: Shore Protection Works and Restoration of Beach Front - US$65 million8. Overall, the implementation progress remains Moderately Unsatisfactory. While improvements have been observed in all sub-components over the last six months, contract award of works is likely to be delayed, as detailed below.

9. Sub-component 3.1 - Shore-protection - Greater Visakhapatnam Municipal Corporation (GVMC): The conceptual solutions for shore protection prepared by National Institute of Ocean Technology (NIOT) are yet to be submitted by consultant to GoAP. Payment to NIOT and Deltares has been made. Given the insufficient time left for implementation, the works were dropped from the project during restructuring in October 2019.

10. Beach Front Restoration (GVMC):As agreed in the previous mission, DPRs for three packages have been finalized by the consultant, but only one package (RK Beach) has been tendered. The package 1 and 3 were dropped and associated funds were cancelled during November 2019 restructuring. he RK Beach bids are under technical evaluation. It was reiterated that before the award of contract, the following conditions, documented in the last AM must be fulfilled:

Environmental and Social Impact Assessment is concurred with by the Bank and disclosed. Resettlement Action Plan (RAP) is prepared, agreed with stakeholders, approved by the Bank

and disclosed. Coastal Regulation Zone (CRZ) approval is obtained including other regulatory approvals. Recommendations on structural design from marine/coastal engineering standpoint are

obtained in writing and included in the bidding document.

11. Kailasagiri Hill park Visakhapatnam Metropolitan Regional Development Authority (VMRDA):VMRDA completed the evaluation of bid for works for Kailasagiri Hill park and issued LOA to the bidder (Rs. 56.55 Crs). Agreement is to be concluded soon.

Component 4: Restoration of environmental services/facilities and livelihood support - US$20 million12. Overall, the implementation progress of Component 4 remains Moderately Satisfactory. The major findings and agreement for each sub-component are as follows.

Sub-component 4.1: Restoration of environmental services and facilities (US$8 m)

13. 4.1a: Indira Gandhi Zoological Park (IGZP), Visakhapatnam: The consultant has provided the master plans, conceptual design and DPRs for the IGZP, which have been reviewed by the Andhra Pradesh Forest Department (PIU/APFD).These documents will be sent for PMU’s review after the approval of Master plan by Central Zoo Authority and Chief Wildlife Warden of AP. While the

design and DPRs are being done under the project, the works have been dropped in the last restructuring. Agreement was concluded for standalone works including elephant enclosure (musth shelter) and primate night houses and work has started. DPR for road renewal is ready to bid. Specifications for hospital accessories, double barrel injection rifle, Mahindra pickup have been agreed. Procurement of these were on hold due to the election and should commence soon.

14. 4.1b: Eco-Tourism Park at Kambalakonda: The master plan and DPRs are ready and approved by the department and are pending PMU review. However, the works were dropped and funds were cancelled in November 2019 restructuring. DPR for fencing is ready to bid. It was agreed with the PIU and PMU that keeping in mind the time frame and work progress of Part A of the contract, Part B of the contract, i.e. Management Plan of Kambalakonda Wildlife Sanctuary, will be activated.

15. Sub-component 4.2: Livelihoods Support: As of Feb 2020, around 8,928 men and 8,771 women gained employment, a total of 289,671 work days were generated for men and 315,480 for women from work in planting and maintaining of shelterbelts, mangroves and nurseries that would supply saplings for farm forestry and for creation of shelter belts/wind breaks. Of the upwardly revised target of 351 km of avenue plantation, 316 Km have been completed and the rest will be completed during the monsoon of 2020.The Pest Management Plan for APFD was submitted to the Bank, as well as to PMU and is under review.

16. 4.2a: Nursery and Farm Forestry: As of Feb 19, 2020, of the target of 57.30 million saplings, 46.33 million saplings have been raised of which 45.36 million have been distributed/ utilized for planting. The target in the PAD was 5 million saplings of various varieties, considering a 5-year project this comes to 25 million for the project. The project is set to achieve 230% of the original target.

17. During the last mission APFD had identified a total of 36 field nurseries and 4 high-tech nurseries for intervention. It has been informed that now APFD has reduced the number of nurseries to 12 (9 field and 3 central nurseries) costing INR 4.25 Cr for intervention. Detailed DPRs have been shared and agreed.

18. 4.2b: Shelterbelt Plantation: A total of 811 hectare of shelterbelt, Casuarina (746 ha) and Palmyrah (65 ha) have been planted. This includes the77.10 ha of Casuarina shelter belt that was damaged by Cyclone Titli in Srikakulam district. Additionally, Palmyrah brakes have been dibbled for 15 km in Vizianagram.

19. 4.2c: Mangrove regeneration: Out of 150 ha of Mangroves identified for restoration, 135 ha have been planted and an additional 15 ha will be planted by project closing. In addition, a mangrove nursery with about 1 lakh saplings of the species; Avicennia marina, Avicennia alba and Rhizophora mucrinata has been set up. The draft ToR for the study,‘Natural Coastal bio shelters has been shared with the bank by APFD for review. Bank will share its observations, however, it is unlikely to be completed within the project timeframe.

Component 5 – Capacity building and technical support for Disaster Risk Management - US$ 35 million20. Overall progress of this component implemented by the PMU, along with relevant state departments, remains Moderately Satisfactory. Activities related to AP Critical Operations, Strategic Management and Incident Management (APCOSMIC), Multi Hazard Risk Assessment, Geospatial Lab and Building Regulatory Framework are progressing well. The PMU has suggested a new implementation model for the Community Based Disaster Risk Management activity. The mission suggested that the PMU share a detailed plan of activities with responsibilities of the departments

involved by April 30, 2020. Further the PMU has completed the hiring for 7 of the 11 positions, that had been pending. The PMU is also drafting a proposal and System Requirements Specifications (SRS) for the AP Disaster Assessment and Management System” (APDAMS), that will use latest technologies in Machine Learning, computer vision analysis, drones and UAVs to estimate extent of damage and enumeration and plan and deliver improved and rapid post-disaster response and reconstruction.

21. The mission agreed to the PMU’s proposal of procuring equipment for the District Emergency Operation Centers and the Municipal Emergency Operation Centers and for procuring shelter equipment and DG sets for the MPCS. Equipment procurement for State Disaster Response Force (SDRF)/Fire department through GeMhas suffered persistent delays (36 packages pending of 49) and the PMU agreed to explore procurement through the Request for Quotation (RFQ). While some progress has been made since the last ISR mission, the issues related tonon-payment of dues continue to impede progress and are of serious concern. A threat of suspension letter has been issued to the GoAP with specific actions to be taken to address these issues. Almost all pending payments have been made. Detailed activity level progress has been captured in annexes.

Environmental and Social Management

22. Environment Management: The overall implementation progress of environmental management aspects remains Moderately Satisfactory. The mission reiterated that monitoring and reporting of environmental compliance need to be ensured as agreed in the ESMF and suggested to the PMU that they ensure that the TPQA has a regular Environmental staff. Additionally, the GVMC and APFD should also consider appointing Environment management staff for management of its contracts under bidding.

23. Social Management: The overall implementation progress of social aspects has been upgraded to Moderately Satisfactory. The contractors and TPQA have undertaken programs to inform and educate the communities on work schedules, disturbances, ‘dos and don’t’s’ during the works execution. The mission noted completing disbursement of assistance for the structures on encroached lands in four roads. The delays in addressing public inconvenience issues arising out of under-ground cabling trenching works is the top most issue to be tackled immediately by EPDCL. The key actions agreed include: 1) All trenches are agreed to be closed within scheduled period. 2) PMU has to share final completion report for 4 road completing disbursement of assistance for the structures on encroached lands. 3) GVMC is to institute ‘City Advisory/Consultations Forum’ for RK Beach redevelopment. 4) APFD has been suggested to disclose Kambalakonda Master Plan on Forest and PMU website and display proposed interventions/drawings at Kambalakonda and Zoo entrances. 5) VMRDA has to submit revised Social Assessment report for Kailasagiri works before April 15, 2020. Detailed observations and actions are provided in the annexure.

Financial management24. The Bank has disbursed USD 88.05 million under the Credit representing 35% of original allocation of USD 250 million. As of February 2020, the undisbursed amount available under the Credit is USD 113 million, which is approximately Rs 8140 million. The FM risk of the project is Substantial, and performance rating is retained as Moderately Unsatisfactory, mainly due to (a) non-submission of project AG audit report of FY 2018-19; (b) delay in submitting compliance/action taken report to the State AG on the audit paras of Rs 83 crores for APDRP and Rs 20 crores for closed NCRMP 1 and Additional Financing; and, (c) continuous delay in the internal audit. Detailed observations and actions agreed are given in Annexure 4.

Procurement

25. The procurement risk remains Substantial. The overall procurement performance during this mission has been downgraded to Moderately Satisfactory. This is primarily due to the following reasons : [a] substantial delays in the procurement of critical goods through GeM for use of AP Fire Services Department and AP State Disaster Response Force [e.g., Fire Proximity Suits]; [b] staff positions for implementation seem to be inadequate, e.g., seasoned procurement expert who was available from the time of preparation of the project is no longer available to the project; vacant positions of a Procurement Specialist [1] and Contract Specialist [1] jointly to be shared by GVMC and VUDA pending as an action point since the last 2 missions have not been filled in; AP Forest Department has still not recruited a procurement expert [pending action since last mission] and continues to rely on PMU for procurement support and PRD for technical support; [c] decline in the quality of submission of documents by the PMU, and delay in updating procurement plan; and [d] weak contract administration and management [e.g., contracts extensions not processed timely, delay in processing payments to consultants, contractors and suppliers]. All of the above have impacted both effectiveness and efficiency of procurement and thereby impacted implementation progress. The Bank team noted delivery of some procurements beyond the current project closing date of September 30, 2020. The Bank team also noted that payments attributable to GST have not been made. The Bank Team reminded that any expenditure incurred after current project closing date of September 30, 2020 would be regarded as ineligible expenditure and requested the project to take this into consideration both while initiating new procurements, as well as releasing payments to contractors/suppliers/consultants for services work performed/services delivered, as well as payment attributable to GST. The status of five largest procurement packages is at Annex 2 and details of other findings and discussions are given in Annexes.

IV. NEXT STEPS AND AGREED ACTIONS26. Mission agreed to the Adjustments to the results targets to align with the November2019 restructuring. The indicators are being revised to better align the framework with the actual activities and monitor and track their progress and to better measure the outcomes of the project (PDO indicators). Please see Annex 3 for progress as per the current results framework as given in the PAD.

Table 2: Summary of Agreed Actions

S. No. Actions Responsibility Timeline Reply

Component 1: Resilient Electrical Network1. Process extension of package 4 APEPDCL Immediately2. Process payments regularly and timely APEPDCL Immediately3. Resolve GST issue and APEPDCL/PMU Immediately4. Award the contract for cable fault locator APEPDCL Immediately

5. APEPDCL with PMC to ensure fortnightly monthly and quarterly, work-programs and progress reporting APEPDCL Immediately

6. Furnish Type test certificates for balance equipment (Ex: Transformers of package 4) APEPDCL Immediately

Component 2: Restoration of Connectivity and Shelter Infrastructure

7. Issue completion certificate for all the works reported as completed after detailed inspection PRED and RBD April 30, 2020

8. Rectify the shoulders, rain cuts and other items of work PRED April 30, 2020

9. Identify additional signages, guard stones etc. and get it erected where-ever required PRED April 30, 2020

10. Expedite the final bills for the packages for which the completion certificates issued PRED and RBD Immediately

11. Resolve GST issue PMU ImmediatelyComponent 3: Shore Protection Works and Restoration of beach front

12. Complete RAP, SIA, EIA, CRZ clearance application and other regulatory requirements for the entire project GVMC On priority


13. Obtain conceptual solutions report from Deltares/NIOT GVMC Immediately

14. GVMC to consult NIOT for inputs on the Bheemli and the RK Beach stretch GVMC Immediately

Component 4: Restoration of Environmental Services/Facilities and Livelihood Support15. Kambalakonda Eco park Consultant contract – Part B to be

activated PMU/ APFD Immediately

16. Zoo and Kambalakondastand alone works to start APFD Immediately17. Zoo equipment procurement to be completed APFD ImmediatelyComponent 5: Capacity Building and Technical Support on DRM

18.Extend contract, recalibrate timelines and get revised schedule of activities for APCOSMIC after discussion with the consultant

PMU/APSDMA April 15, 2020

19. Send proposal for revision of scope under Geo-Spatial lab work and extend contract as necessary PMU/APSDMA Immediately

20. Rebidding for procurement of in-house data center and procure cloud services PMU/APSDMA Immediately

21. Complete procurement of SDRF/Fire emergency equipment through GeM or through RFQ PMU/APSDMA Immediately

22. Extent contract for consultants on Building Regulation PMU/APSDMA Immediately

23. Share revised proposal for CBDRM after closing contract with Action PMU/APSDMA April 1, 2020

24. Rebidding for procurement of Multi-Touch wall PMU/APSDMA Immediately25. Expedite pending payments for contractors and consultants PMU/APSDMA Immediately

26. Complete and share DPR for Drone based LIDAR with the World Bank PMU/APSDMA April 30, 2020

27.

PMU should resolve data sharing issue with INCOIS and APSDPS. Also, the integration of siren activation of the sirens installed in the NCRMP project to the APCOSMIC/Geospatial platform needs to be completed

PMU/APSDMA/Consultants April 30, 2020

28.The Geospatial consultants need to prepare documentation of how the data is collected, processed, presented and used – the protocols need to be made clear

Consultant (CEINSYS) May 30, 2020

Safeguards – Environment and Social29. All trenches are agreed to be closed within scheduled period PMU/APEPDCL Regularly30. Share final completion report for 4 road completing

disbursement of assistance for the structures on encroached lands

PMU/PRD/PRED April 30, 2020

31. Institute ‘City Advisory/Consultations Forum’ for RK Beach redevelopment PMU/GVMC April 30, 2020

32. Disclose Kambalakonda Master Plan on Forest and PMU website and display proposed interventions/drawings at Kambalakonda and Zoo entrances

PMU/APFD Immediately

33. Submit revised Social Assessment report for Kailasagiri works PMU/VMRDA April 15, 2020Financial Management34. Submit AG audit report of FY 2018-19 PMU Immediate

35.

Submit consolidate response to the State AG on audit disallowances of Rs 83 crores for APDRP (from inception till FY 2017-

18), and Rs 20 crores for closed NCRMP 1 and Additional

Financing (FY 2013-14 to 2017-18)

PMU

Immediately

36. Release payment to the contractor and consultants for the bills submitted to PAO PMU Immediate

37. Submit Internal audit report PMU


from inception to FY 2017-18, and FY 2018-19

ImmediatelyJune 30, 2020

38. GVMC to create separate ledger head in DEBAS for project accounting GVMC/PMU April 30, 2020

39. Depute official or contract FM person in Forest department for the project APFD/PMU May 31, 2020

Procurement

40. Update STEP to include activities within the project boundaries

PMU/PIUs Immediately

41. Submit Technical Evaluation Report for R. K. Beachfront Development to the Bank for review/clearance

GVMC Immediately

42. Amend contract on MHRA with M/s. RMSI, New Delhi on STEP PMU/APSDMA Immediately

43. Complete procurement of critical equipment for AP Fire Department

PMU Latest by May 2020

44. Submit draft bidding document for AP-ALERT to the Bank through STEP

PMU Immediately

45. Initiate re-tendering of In-house Data Center for SDMA APSDMA/PMU Immediately

46. Initiate re-tendering of Procurement of Multi-touch Video Wall Solution after completion of DPR by APSDMA

APSDMA/PMU Immediately

47. Initiate tendering for cloud services APSDMA/PMU Immediately

48. Initiate pending and new works tender documents for which are ready, as informed to the Bank Team

APFD Immediately

49. Complete the bidding documents for redevelopment ofKambalakonda Eco-tourism park

APFD Immediately

50. Extend contracts where consultants are still working but their contracts have lapsed

PMU/PIUs Immediately

51. Share PPR Report World Bank April 30, 2020

Table 3: Status ofAgreements from the previous AM


Component 1: Resilient Electrical Network1. Process extension of contracts 1, 2 and 3 APEPDCL Immediately Completed

2. Process pending payments and process bills under processing APEPDCL Immediately Complied but

with long delay

3. Resolve GST issue APEPDCL/PMU October31, 2019

Pending

4. Re-bidding of cable fault locator APEPDCL Immediately Evaluation completed after re-bidding

5. Ensure extension of all insurances and other guarantees for the works given extension APEPDCL October31,

2019

6.APEPDCL with PMC to ensure fortnightly monthly and quarterly, work-programs and progress reporting

APEPDCL ImmediatelyNot done

7. Furnish Type test certificates for balance equipment (Ex: Transformers of package 4) APEPDCL October31,

2019Partially complied

8. Submit fortnightly and monthly progress report to Bank APEPDCL October31,

2019Complied

Component 2: Restoration of Connectivity and Shelter InfrastructureSub-component 2.1: Restoration of rural roads and cyclone shelters

9. Review and upload DPR of the balance 1 bridge package PRED Immediately Dropped

10. Review of DPRs of ongoing few works and identify PRED November15, Partially


the site-specific requirement in all the road works and issue variation orders 2019 complied

11.Take up and complete the works identified above in packages where the works are completed/ nearing completion

PRED November 15, 2019

Completed

12. Rectify the shoulders, rain cuts and quadrant pitching PRED October31,

2019Complied

13. Finalize the bids received for all the 18 additional packages and issue LOA PRED November 15,

2019

Deleted from the scope of the project

14. Issue completion certificate for all the works reported as completed after detailed inspection PRED December 31,

2019Partially complied

15. Expedite the final bills for the packages for which the completion certificates issued PRED Immediately

and ongoingPartially complied

Sub-component 2.2: Restoration of Major District Roads (MDR)

16.Provide pitching to quadrant at minor bridge in GPY road and other miscellaneous items pointed out during site visit

RBD November 15, 2019

complied

17. Issue completion certificate for the balance 4 packages after detailed inspection. RBD November 15,

2019Complied

18.Where Electrical poles or trees are very close to BT edge, provide reflective tape around to serve as sign.

RBD ImmediatelyComplied

19.Rectify the earthen shoulders wherever required duly making up and compacting at OMC to the desired density.

RBD ImmediatelyComplied

20. Finalize the bids received for all the 18 additional packages and issue LOA RBD November 15,

2019Dropped from the project scope

Component 3: Shore Protection Works and Restoration of beach front

21.Complete RAP, SIA, EIA, CRZ clearance application and other regulatory requirements for the entire project

GVMC On priorityNot completed

22. GVMC to consult NIOT for inputs on the Bheemli and the RK Beach stretch GVMC Immediately Partially

complied Component 4: Restoration of Environmental Services/Facilities and Livelihood Support23. Approval for standalone works and list of

equipment for the Zoo APFD Immediately Partially complied

24. Finalize master plan and bidding documents for Kambalakonda Eco-Park APFD November 15,

2019Completed

25. Share a detailed update along with approvals for Nurseries APFD November 15,

2019Partially completed

26. Draft ToR for study on Natural coastal bio-shelters APFD November 15, 2019

Not done

27. Staff positions to be filled up APFD December 15, 2019

Not done

Component 5: Capacity Building and Technical Support on DRM

28. Sign contract for multi-touch video wall with the shortlisted supplier PMU/APSDMA Immediately Not done

29. Send proposal for revision of scope under Geo-Spatial lab work PMU/APSDMA Immediately Yet to be

completed30. Rebidding for procurement of in-house data centre PMU/APSDMA Immediately

31. Complete procurement of SDRF/Fire emergency equipment through GeM PMU/APSDMA December 31,

2019Not done

32. Complete evaluation and award contracts for PMU/APSDMA November 15, Completed


hydraulic platform and emergency rescue vehicles 2019

33. Share revised proposal for CBDRM PMU/APSDMA October 15, 2019

Not completed yet

34. Sign contract for Multi-Hazard Risk Assessment PMU/APSDMA Immediately Completed

35. Expedite pending payments for contractors and consultants PMU/APSDMA Immediately Payments are

pendingSafeguards – Environment and Social36. EPDCL - Submit fortnight status reports to the

World Bank on length of stretches opened and closed

APEPDCL PeriodicallyComplied

37. PWD - Submit screening reports for 8 roads and submit brief social assessment report forG Medapadu, East Godavari road

PRD November 15, 2019

Complied

38. Submit SIA/RAPs and consultation report for Bhimili and RK Beach GVMC Immediately Not completed

yet 39. Disclose the SIA/RAPs for Bhimili and RK Beach GVMC Immediately Not completed

yet40. Disclose Kambalakonda Master Plan on Forest and

PMU website and display proposed interventions/drawings at Kambalakonda and Zoo entrances

APFD November 15, 2019

Not completed yet

Financial Management41. Release funds for pending payments to contractors PMU Immediately Done with delays

42. Internal audit from inception to FY 2018-19 for PMU and all PIUs PMU

December 31, 2019

Partly completed. Audit for FY 2017-18 is completed, and FY 2018-19 is ongoing

43. Reconcile audit report disallowance and share status report in agreed format with the Bank PMU October 15,

2019Pending

44.GoAP’s circular (Comp No. 898809): action required either to exempt EAP or ascertain ‘appropriate authority’ for clearance of bills.

Finance Department/

PMU

Immediately Not required. The past payments have now been released to the contractor

45. Monthly meeting between PMU and PIUs FM staff PMU/ PIUs Ongoing Ongoing

46. GVMC to create separate group/ ledger heads in DEBAS for APDRP GVMC/ PMU November 15,

2019Pending

47. PIUs to follow the accounting and book keeping requirements laid out in the Financial Manual.

R&B/ APFD/ APEPDCL/PMU

November 15, 2019

Ongoing

Procurement

48.

Update STEP with procurement related complaint, and, address procurement related complaint in accordance with provisions of applicable procurement guidelines

PMU Immediately

Completed

49.Submit reason for re-tendering and measures taken to mitigate risk of recurrence of re-tendering along with STEP submission

All Implemen

ting Agencies

Immediately

Completed

50. Submit confirmation on organization level and user level mapping of the project implementing agencies

PMU/PIUs Immediately Informed that this is done

10


under ‘World Bank Projects’ in the NIC portal51. Hiring of a Procurement Expert by APFD APFD Immediately Pending

52. Respond to findings of PPR PMU/PIUs Immediately

Deemed acceptance as no response received

11

Annexes:

ANNEX 1: LIST OF OFFICIALS MET AND COMPOSITION OF WB TEAM

S.No

DESIGNATION

Name of the Officer

1 Chief Secretary Smt. Nilam Sawhney, IAS2 Principal Secretary (DM) Smt. V. Usha Rani, IAS3 TTL World Bank Sri. Deepak Singh4 Project Director, PMU, APDRP Sri. K. KannaBabu, IAS5 Operations Specialist, World Bank Sri. Deepak Malik

6 Deputy Special Secretary, EFS&T Sri P.V. Chalapathi Rao, IFS

7 Principal Secretary, Panchayat Raj Sri Gopal Krishna Dwivedi, IAS8 Principal Secretary, MA&UD Sri J. Syamala Rao, IAS9 Director General, AP Fire Services Smt. A.R.Anuradha, IPS

10 CCF, Vizag (Forest Dept) Sri. Rahul Pandey, IFS11 CMD, APEPDCL Miss. Naga Lakshmi.S, IAS12 Project Manager, APDRP Sri. S.V.N.S. Sai Kumar13 Project Manager, PIU, PR, APDRP Sri. K.V. Subbarayudu14 Project Manager, PIU, R&B, APDRP Sri. V. Ramachandra15 MC, VMRDA Sri. V. Koteswar Rao16 ADC, GVMC Smt. A. ThameemAnsaria17 Smt. Yasodha Bhai, IFS Zoo Qurator, Visakhapatnam18 Sri. C. Selvam, IFS, DFO Visakhapatnam 19 Sri.Koteswar Rao, IAS Metropolitan Commissioner VMRDA 20 Sri. Nara simha Rao, Executive Engineer, PIU, PRED21 Sri. Venugopal, SE, PRED, Srikakulam22 Sri. Sudhakar Reddy, SE, PRED, Visakhapatnam23 Sri. K.M.V. Prasad Rao, EE, PRED, Srikakulam24 Smt. Kantimathi SE, R&B, Vijayanagaram25 Sri. Srinivas, EE, GVMC, Visakhapatnam26 Sri. K. Rajabapiah Director Projects, APEPDCL27 Sri. K.V. Ch. Panthulu Chief General Manager, APEPDCL28 Sri. G.Chiranjeevi Rao General Manager, APEPDCL29 Sri. T.V.S.N. Murthy Executive Engineer, APEPDCL

Composition of WB teamThe Mission was led by Deepak Singh (Task Team Leader & Lead DRM Specialist), and included: Neha Vyas (Co-TTL, Senior Environment Safeguard Specialist) Peeyush Sekhsaria (DRM Specialist), Arvind Prasad Mantha (Senior Financial Management Specialist), Venkata Rao Bayana (Social Development Specialist), Geeta Shivdasani (Procurement Analyst), Mehul Jain (Climate Change Specialist) , Murahari Reddy (Highway Specialist, Consultant), MA Dasarathi (Electrical Specialist, Consultant) and Deepak Malik (Operations Specialist, Consultant). The Mission was supported by Sumit Gulati (Program Assistant).

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ANNEX 2: STATUS OF 5 LARGEST PROCUREMENT PACKAGES

S. No.

Name of the work and package number

Contract award date

Date of mobilization of works

Scheduled date of completion/ Extended Date

Amt [US$ M]

Contractor

Status as per July 2019 Mission

Status as per Current Mission February 2020

1. Underground cabling work in Visakhapatnam, Package number 2

October 17, 2017

April 2018,

June 30th, 2020

38 M/s. L&T Ltd, Chennai

Physical Progress: 42.43%Financial progress: 33.25%

Cable trench excavation about 41 km. cable laid: 182.72 km

Physical Progress Reported is 59.19 % and Financial progress reported is 39.76 %

Cable trench excavation about 100.85 Kms.Cable laid: 411.22 Kms.Overall Percentage of Cable laid: 31.15%Service Connections: 4631 (9.1%)


September 22, 2017

April 2018

July 17, 2020

36.1 M/s. Vijay Electricals Ltd., Hyderabad

Physical Progress Reported is 33.71% and Financial Progress is 21.67%

Cables:Cable trench excavation about 58.29 km. cable laid: 179.80 km.


Cable trench excavation about 66.30 Kms.Cable laid: 215.47 Kms.Overall Percentage of Cable laid:32%Service Connections::28 (0.05%)


October 31, 2017

April 2018

July 17, 2020

24.8 M/s. Vijay Electricals Ltd., Hyderabad

Physical Progress reported is 27.32%

Cable trench excavation


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about 29.81 km. cable laid: 87.49 kmFinancial progress: 23.43%

Cable trench excavation about 35.87 Kms.Cable laid: 122.85 Kms.Service Connections:1 (0.0001%)


April 3, 2018

July 25, 2018

January 24, 2020EOT Proposal submitted for July 30, 2020

16.9 M/s. Jackson Engineering Ltd., New Delhi

Cable trench excavation about 22.33 km.Cable laid: 44.30 KmsPhysical Progress Reported is 13.86 %Financial progress reported is 8.87 %

Physical Progress Reported is :25.86%Physical Progress Reported is 25.86 % and Financial progress reported is 23.19%

Cable trench excavation about 48.40 Kms.Cable laid: 115.33 Kms.Service connections: 0 (0%)

5. Permanent restoration of Narsipatnam-Tallapalem Road [30 Kms.] in Visakhapatnam District

April 10, 2017

February 14, 2018

April 9, 2019

3.8 M/s. Sri Ventakeswara Constructions, Visakhapatnam

Physical progress: 75.20 %

Physical progress: 75.20 %Will be completed with some delays

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ANNEX 3: RESULTS FRAMEWORK

PDO Indicators

INDICATORS BASELINE

ACTUAL (Previous)

ACTUAL (Current)

END TARGET

Number of electric consumer accounts covered by the underground cable network (Number) 0 0 4660 162888

Number of people with access to restored and improved rural roads and shelters(Number)

0 294,278 1725000 2525153

Of which female (Number - Sub-Type: Supplemental) 0 141,975 812475 1191872

Number of people with access to restored and improved beach front (Number) 0 0 0 1000000

Number of people with access to restored and improved environmental services/facilities (Number)

0 0 0 0

Urban disaster risk vulnerability analysis completed (Yes/No) No No No Yes

Intermediate Results Indicators

INDICATORS BASELINE ACTUAL (Previous)

ACTUAL (Current) END TARGET

Direct project beneficiaries (Number) - (Core) 0.00 319,000 1728209 3188041

Female beneficiaries (Percentage - Sub-Type: Supplemental) - (Core) 0.00 160,000 813986 1501567

Distribution lines constructed or rehabilitated under the project (Kilometers) - (Core)

0.00 0.00

UG Cable33KV -

17.2km

11KV - 57.6km

LT - 163.6km

247.26

UG Cable33KV –

111.4711KV –

415.75LT - 1500

527

UG Cable33KV -

111.47km11KV -

415.7kmLT - 1500km

Roads rehabilitated, Rural (Kilometers) - (Core) 0.00 187.00 442.89 620.03

Number of shelters rehabilitated (Number) 0.00 0.00 0.00 0

Roads rehabilitated, Non-rural (Kilometers) - (Core) 0.00 44.00 205.88 250

Kilometer of beachfront restored (Kilometers) 0.00 0.00 0.00 3.50

Number of nurseries established/restored (number) 0.00 0.00 0.00 12

Number of environmental services and facilities restored and improved

No No No 0

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(number)Communication and search and rescue equipment provided to the State disaster response force (Yes/No)

No No No Yes

Design guidelines for buildings and public infrastructure updated (Yes/No) No No No Yes

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ANNEX 4: ALL OTHER INFORMATION

Component 1: Detailed Observations on U.G. CABLE WORKS: APEPDCL1. Pkg 1,2 & 3 contracts have been extended till June and July 2020. Recommendation for

extension of package 4 contract, till 31st July has been sent to Bank.2. APEPDCL to check whether all Insurances and other guarantees are extended, since the works

are in progress.3. The progress in all packages are very slow as per statement sent on February 14 th ,2020. The

progress for all packages put together works out to 44.97%. 4. APEPDCL with PMC to ensure thatfortnightly monthly and quarterly, work-programs are in place

for all four packages. 5. Shortage of technicians for cable jointing and erection of equipment to be resolved.6. Machineries like cranes for erecting heavy equipment, small plate compactors for compacting

trench, water bowsers for use before compacting, cable testing kits etc., are not available in adequate numbers with all contractors.There is shortage of labor. These need to be planned by APEPDCL and PMC with contractors based on the revised targets on a fortnightly basis.

7. Trenches and areas where cable jointing is done, equipment erection places are left open for months together. Several fronts have been opened and work half done in many locations. APEPDCL to discuss with PMC for better planning and ensuring completion of these before proceeding to next section.

8. Safety issues like proper protection gears with laborer’s, barricading, LED strip lighting, removal of debris to be regularly monitored.

9. Type test certificates for some of the equipments (Ex: Transformers of package 4) are yet to be furnished.

10. Some of the field test/ compliance reports do not have dates or location or signatures of all parties concerned. Inspection compliance reports are to be properly maintained by PMC.

11. Cable trenches across entrances are not in a straight line.12. Final restoration at allplaces either with PCC or asphalt is to be totally levelled.13. In narrow streets, where complete row of small shops in roads (Ex: Kanaka Mahalakshmi Temple

area) are there, erection of feeder pillars and service pillars will obstruct shop entrances. APEPDCL/ PMC to come up with alternate solutions to mount on poles/ platforms.

14. At several locations service pillars are erected in a haphazard manner. APEPDCL, PMC and Contractor to ensure that these are properly erected and do not obstruct the traffic.

15. Service cable connections to consumers are taken above the storm water drains. The service cables should be taken at the bed level of the drains and through a GI pipe of suitable diameter.

16. In consumer premises cables are not laid and terminated properly. The excavated area in consumer premises are not finished properly. Care should be taken while terminating to the meters to ensure openings, windows and other services are not affected.

17. Reflector tapes of Red colour should be put on all feeder and service pillars. This will ensure that vehicles are aware of an object in the right of way and will avoid accidents especially during nights.

Component 2.1: Detailed Observations on Rural Roads Component-PREDDate of site Visit: 17.02.2020 (PRED road)

Name of road District, Division Package No.Road from Tippalavalasa R&B Road to Chintapalli- Vizianagaram R&B

Road- PusapatiregaVijayanagaram District Package No. 51/APDRP/COMP

2.1-W/RRCS/PRED/02/PUSAPATIREGA-001.

Start date: 31.12.2018 Time=18 months Schedule date= 30.06.2020Length= 6.87 km (Total

Package=8.52 km)Contract amount:

Rs.496.58Lakhs.Expenditure: RS.135.75 Lakhs

Value of work done as on date=465.75 Lakhs

Work is nearing completion. Riding quality of BT road is good.

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Insurance policy is valid upto schedule completion period. The policy shall be extended upto 28days beyond defect liability period of 24 months after the issue of completion certificate.

Traffic signages were already erected in majority of curves. But still some more are needed, PM and TPQA shall assess the additional signages required and got it fixed.

The height of embankment is more than 2 m in some stretches. At these places provide guard stone with reflective surface.

Date of site Visit: 17.02.2020 (PRED road)

Road from NH-16 to YenetiKotturu (via) Gatlapadu Srikakulam District

Package No. 83/APDRP/COMP.2.1-W/RRCS/PRED/01

/KOTABOMMALI-001.

Start date: 30.01.18 Time=18 months Schedule date= 29.07.2019:Actual date of completion:04.01.2019

Length of this road= 2.668 km Contract Amount: Rs.107.43 L Completed Expenditure :80.84 L

Work was reported completed before schedule period. BT riding quality is good Line drain was provided, but the shoulder need to be dressed so as to drain the rain water into the drain. Guide

stones shall be fixed on the drain wall. Earth work compaction is inadequate- to be rectified. Embankment side slopes need rectification. CC pavement carried is of good quality. The sides are 0.6 m below road. To avoid accidents it is suggested to

provide concrete kerb or guard stones at the edge of CC pavement. Insurance policy is valid for one year only which is going to expire shortly. The policy shall be extended before

expiry of the period. Finally, it shall be valid upto 28days beyond defect validity period.Date of site Visit: 18.02.2020 (PRED road)

Name of work District, Division Package No.

Road from Cherukumpakala road to Ratnagiri Colony Visakhapatnam District,

Package No. 29/APDRP/COMP/P2.1-W/RRCS/PRED/03/Chi

ntapalli/001.

Start date: 20.03.17 Time=12 months Schedule date= 19.03.2018: Actual date of Completion=10.02.2018

Length of road=3.20 km. Contract amount: Rs.243.60 Lakhs

Work was completed and DLP also over on 09.02.2020

Shoulders are lower level and needs rectification. CD works vents need to be cleared. PM to inspect and notify the contractor to rectify the defects before issuing DLP certificate. Check list to be prepared duly indicating the salient features, inventory, as built drawings and other aspects

and attached to DLP certificate as the same was not attached to completion certificate.Date of site Visit: 17.02.2020 (RBD road)

Permanent restoration to Caingapatnam- Bandaruvanipeta Road Srikakulam District Package No. RBD/01/006.

Start date:20.02.2018 Time=12 months Schedule Compl- 19 .05.19 Cont Amt.Rs.323.66Lakh

Length= 0.502 km Value of work done=Rs.255.26 Lakh

Actual date of completion-19.05.2020: EOT granted

Work is completed and completion certificate issued

Work was completed long back and is under DLP. This work is serving the access to the village as well as MPCS constructed under NCRMP. Expenditure is only 159.50 Lakhs. Action to be taken to pay the balance amount as the work was completed long

back. Hazardous signage fixed at 2 of box culverts need to be changed as the direction is not correct.

Date of inspection: 18.02.2020(RBD bridge work)Name of road District, Division Package No.

Construction of Minor Bridges at Km. ¾-6 and 8/4-6 of Vechalam -Khandivaram Road Visakhapatnam District

Package No. APDRP/Comp.2.2-W/MDR/RBD/

03/007.

Start date: 24.02.18 Time=12 months Schedule date=23.02.19EOT Granted=23.05.2019

Cont. Amt.= 236.90 LakhsRev Cont. Amt=300.40 Lakhs

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Exp.=Rs.320.32 Lakhs Fin. progress=100 % Work completed Under DLP Bridges were completed in May 2019 and are under DLP. Considering the height of embankment and existing side slopes, it is suggested to provide pitching. Hazardous signs, the black reflective paper was got damaged, these may be got replaced.

Component 5- Detailed observations on Capacity Building and Technical Support on DRM18. 5 A (i) APCOSMIC: Progress has been made by the consultant on this contract and four out of

the seven sub-activities have been completed. However due to the inordinate delays with payments, the consultant had demobilized. Subsequently, an activity which was ahead of schedule is now behind schedule by six months. As per the original schedule, the commissioning, user acceptance testing and the training at the district and mandal level had to be completed as successive activities. Though, as per the revised schedule of activities, it has been proposed that the three sub-activities now be completed in parallel. The mission suggested that the PMU and the consultant revise the schedule of the contract and file for an extension. In terms of the financial progress, 10% of the contract value has been disbursed to the consultant, further, additional bills of 10% of the contract value are currently with the PMU for processing. Lastly, the consultant has submitted another request for payment of 20% of the contract value in lieu of the completed tasks.

19. 5 A (ii) Geospatial Laboratory: The contract with the consultant was signed on December 20, 2018 and mobilization was done on January 8, 2019. The consultant has already completed the installation of the hardware and the software that is required for the laboratory. The progress of the activity is satisfactory and the payments for the invoice of USD 345,000 (approx.) have been raised by the consultant.Only advance payment of 5% has been made to the consultant thus far 40% payment is pending with finance since January 13, 2020. 90 % of the integration is complete, however, there are some data gaps that need to be addressed. The critical information that is needed by the consultants is available with INCOIS and AP Development Planning Society. The PMU apprised the mission that necessary action will be taken to make this data available to the consultant. Lastly, the PMU has still not received the additional scope proposal from the contractor.

20. 5 A (iii) Multi-Touch Video Wall:The bidding was for the multi-touch video wall has been done twice already without award of contract to any bidder. PMU is yet to initiate rebidding.

21. 5 A (iv) In-House Data Center: The last bid for the in-house data center failed, hence, it will have to be rebid. Further, it was discussed during the last mission that the physical servers should be complemented with a cloud server that will act as a back-up. PMU is yet to initiate the process for that.

22. 5 A (v) Cellphone Based Alert Management System:The PMU has shared the bid document with Bank which is under review.

23. 5 A (vi) Emergency Equipment:PMU informed that agreement has been concluded for 13 of the 49 packages/items including rescue vehicles. Registration for rescue vehicles is to be completed by on priority. Equipment for the vehicles will be received and installed by June 2020.Equipment procurement through GeMhas suffered persistent delays and PMU agrees to explore procurement through RFQ (Request for Quotation).

24. 5.1.D Community Based Disaster Risk Management (CBDRM): The PMU proposed a change in the implementation model for CBDRM. The mission suggested that the PMU develop the proposal further and share it with the World Bank for concurrence. As agreed during the last

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mission, the contract issued to the first consultant needs to be closed and all issues need to be resolved before initiating any activity on CBDRM.

25. 5.2 (i) Multi-hazard Risk Assessment: The procurement for MHRA has been successfully completed on August 8, 2019 and contract awarded to RMSI. The inception report has been shared by the consultant and agreed by PMU. The first advance payment has been made to consultant. PMU has requested to add additional scope to the contract which has been agreed. PMU has been requested to send a formal request on STEP for contract amendment.

26. 5.2 (ii) Procurement of high-resolution Digital Elevation Model from NRSC: The procurement process has been completed. The payment for the data has been made and its expected that the PMU will receive the data soon.

27. 5.2 (iii) Procurement of LIDAR Data: Instead of going for a regular LIDAR survey, the PMU wants to go in for a drone-based LIDAR DEM, for the entire state. The PMU is working on a detailed proposal and estimate.

28. 5.2 (iv) Review of Building Regulatory Framework for Reform Options: The firm has completed the report draft and shared with the PMU. The payments are delayed which has impacted the implementation of other agreed activities. The contract needs to be extended for 3rd and 4th milestone. The consultant has been asked to identify next steps in terms of training requirements and addressing these gaps.

Social Safeguards29. The overall implementation progress of social aspects is moderately satisfactory. Review and

agreements made with the project participating departments is presented below.

30. APEPDCL (Resilient Electrical Network) – Issues of trench cutting and closing: The delays in closing the trenches for UG cables and their resurfacing are continuing largely because of slow down in works past few months. Trench closing and surfacing is more of a public safety issue and warrants no slackness irrespective of works progress. The contractors and the department monitor these aspects strictly and avoid slippages. The following measures were agreed with EPDCL during previous mission to address the issue – (a) develop fixed time schedule to close all the trenches; (b) work fronts to the contractors will be allotted only after closing the trenches in agreed time lines; (c) display timelines at the site informing opening and closing dates for the trenches. To avoid recurrence of these issues, the EPDCL should implement these measures in letter and spirit. The current practice of submitting package wise reports on lengths opened and closed with dates, to the Bank should continue.

31. The contractors and TPQA have undertaken programs to inform and educate the communities on work schedules, disturbances, ‘dos and don’ts’ during the works execution, through electronic, print media, bill boards, pamphlets, phone messages and mike announcements on. The EPDCL should ensure continuation of these IEC/public communication measures by contractors and TPQA. The social staff of the EPDCL, contractors should hold meetings with locals, apartments/RWAs and brief the project works and provide necessary information.

32. R&B Roads – submission of completion report on R&R issues:Themission noted completing disbursement of assistance for the structures on encroached lands in four roads. However, as agreed during previous missions, the PMU should submit final report with the type of loss, amount paid, No Objection letter of the PAP and photograph of final repaired structure. This should be submitted before end April 2020.

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33. Revising SIAs for Beachfront Development – GVMC:Subsequent tolastmission, there are changes in the project scope that includes revisions in Beachfront Development component also. Out of three packages, now Bhimili beach front is taken out from project scope and continuing with RK beach works. In view of this, it was discussed and agreed that the SIA will be revised reflecting the revised scope and will be submitted to the Bank before April 10, 2020. After having obtained Bank’s comments on the SIA, the revised draft SIA will be

disclosed on GVMC and PMU website. Civil works will not be commenced without extending the applicable entitlements to the

eligible PAPs.

34. Stakeholder engagement plan and forming City Consultations Forum: The consultants have shared an initial stakeholder engagement plan for the Beach Front Development which is presently under revisions. The report should have stakeholder mapping matrix. The Bank Team advised the GVMC to institute ‘City Advisory/Consultations Forum’ with prominent citizens and experts for informing, discussions, and to take advise from the Forum on the Beach Front development works. The structure of the Forum should be proposed in the report that includes objectives, composition of members, responsibilities, etc. It is agreed that the GVMC will share the draft report with the Bank on priority.

35. Restoration of Zoological park and Eco Tourism park at Kambalakonda: The Master Plan for Kambalakonda is prepared and in the process of finalization. As agreed during previous missions, the PIU should disclose the Plan on its website as well on APDRP PMU’s website; also display public information board at the front gate presenting the salient features along with summary drawings of the Master Plan for public the benefit of the public.

36. The base line studies for Kambalakonda are in progress. The baseline studies include livelihood assessment for villages which located in and around the periphery of the forest. These are directly or indirectly dependent on/using the forest. Livelihood aspects of forest dwellers, EDC members and users are identified to be studied as part of Eco park development. The livelihood assessment of forest dwellers/users will be studied to identify the areas to integrate the communities in the park sustainable development program. The assessment will identify project interventions to integrate forest communities in the Project.

37. Grievance Redress Mechanism - The mission applauds the GRM system being maintained by the EPDCL and suggest similar systems can be adopted by other participating departments – PWD, Panchayatraj, GVMC, Forest. It is also not clear on the status of grievances of other departments. As agreed during last mission, the PMU should pursue and institutionalize the systems and keep updating the grievance redressal status through progress reports.

38. Under the project, online GRM is developed and is in place. The PMU should review the grievances received, redressed and submit a brief to the Bank through progress report. The PMU should monitor the grievance management of other project departments and guide them to follow the model that EPDCL is practicing.

Finance observations39. GoAP has approved a budget of INR 439 crores in the Revised Estimate of FY 2019-20. The

PAO has recently released all the pending payments of FY 2019-20 to the contractor, except for one consultancy bills of about Rs 11 crores. The implementing agencies in the month of January and February 2020 have submitted bills amounting to Rs 17 crores to PAO for payment and the mission has advised PMU to closely follow-up on it.

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40. APEPDCL has not received Rs 4.98 crores spent on staff salaries and administration expenses from GoAP in FY 2019-20. The PMU will obtain budget release order from GoAP to release this sum to APEPDCL.

41. The mission noted that expenditure report for the payments made by the Forest department in FY 2019-20 for Rs 1.27 crores on consultancies and operational cost have not been submitted to PMU as they do not have dedicated staff to support on this project. Since GoAP approval to hire staff for the project is in place, the mission has suggested Forest department to depute an official or contract FM person from outside.

42. The forest department has been advised to submit the expenditure report to PMU at the earliest so that the expenses can be claimed in the next IFR.

43. The PMU has submitted the IFR for the period December 19, 2019 to January 23, 2020 and it is disbursed by the World Bank to GoI. The mission has advised PMU to follow-up with CAAA office in GoI to obtain ACA release to GoAP.

44. The project audit of FY 2018-19 has been completed by the State AG and the report is expected to be issued in the first week of March 2020. As the due date of audit report submission has already lapsed on December 31, 2019, the mission has advised PMU to follow-up with the State AG office and obtain the report at the earliest.

45. Since the project is nearing closure, the implementing agencies have been requested to prepare responses on the past years audit disallowances of Rs 83 crores and submit it to the State AG for re-certification. Similarly, PMU must collate responses for the audit disallowances of Rs 20 crores for closed NCRMP 1 and Additional Financing and submit them to State AG for re-certification. It was agreed that audit responses will be consolidated by PMU and will be shared with the Bank.

46. The internal audit of the project has been completed till FY 2017-18 and report is issued by the auditor. These reports are agreed to be shared with the Bank in the first week of on priority. The internal audit for FY 2018-19 is ongoing. The mission has suggested the PMU to convene a meeting of internal auditor along with implementing agencies to discuss the audit findings of FY 2017-18 and FY 2018-19 and timeliness to start the FY 2019-20 audit.

Procurement Observations47. With regard to APEPDCL, all UG cable works have been provided extension of time

[recommended by APEPDCL without imposition of LD]. The rate of progress is slow due to a combination of various factors such as delayed payments to the contractors, delay in the resolution of applicable GST, etc. The Bank team reminded that GST payments, if not made within the current project closing date, would become ineligible to be financed under the Project by the Bank. With regard to procurement of cable fault locator van [re-bid with change in qualification requirements], the LOA was issued on February 7, 2020 and the contract is yet to be signed. Delivery period is 4 months from contract signature. STEP has also been updated by APEPDCL.

48. Re-tendering by GVMCfor the work of R. K. Beachfront Development with completion period of 18 months commenced on November 5, 2019 after modification of qualification requirements in the tender document. The extended date of bid submission was December 27, 2019 and bids are valid until March 25, 2020. The bids are currently under technical evaluation and the technical evaluation report will be submitted to the Bank though STEP by February 24, 2020. The Bank team requested GVMC to finalize the tender within the initial bid validity period, i.e., before March 25, 2020, and reminded GVMC that cost of delivery of this procurement beyond the current project closing date would need to be borne by GVMC. The Bank team noted that GVMC has not updated its procurement plan in STEP.

49. VUDA reported that the LOA for the work of Restoration and Re-development of 380 acres Kalasagiri Hill Top at Visakhapatnam has been issued on February 18, 2020. VUDA was

22

requested to update its procurement plan in STEP and extend the contract of M/s. Sai Consultants [Design and Supervision Consultants] providing support to PMU, that expired on December 18, 2020.

50. AP Forest Department does not have a dedicated Procurement Expert and relies on PMU to provide support and on the PRD for technical support in calling for tenders. The Bank team noted progress in pending procurements of the AP Forest Department. Amongst others, such as finalization of award of a few important goods procurement, 2 stand-alone works in the Indira Gandhi Zoological Park [elephant moat and night-house for primate section] cumulatively valued at INR 193 lakhs [or US $275,714 approximately] have been signed on February 22, 2020. Tenders/RFQs documents for about nursery works are ready and are expected to be floated immediately. 5 additional work activities outside of STEP for nursery infrastructure works [1 activity] and raising avenue plantations in different Divisions [4 activities] need to be uploaded in STEP for review by the Bank prior to commencement of these activities. DPR for the redevelopment of Kambalakonda Eco-tourism Park is ready however, the tender documents for the same are not ready. Hence this is excluded from the project boundary, however the Bank will continue to provide support for preparation of tender documents for this investment on a need basis. The Bank team was informed that the AP Forest Department has dropped its earlier proposal on implementation of small works [estimated below INR 10 Lakhs] by Van Suraksha Samitis [VSSs]. STEP update by AP Forest Department is pending.

51. PMU is providing procurement support to AP Fire Department and APSDRF in carrying out their procurement. There is significant delay in procurement of critical emergency equipment [on-going since January 2018]. The Bank team requested PMU to expedite this procurement and once again drew attention to flexibilities in procurement arrangements available to the project [increased threshold for some methods of procurement such as RFQ] and requested PMU to consider other modes of RFQ outside of GeM to expedite this procurement for once and for all, and the latest by end-May 2020 to allow reasonable time for delivery and subsequent payments before the current project closing date. PMU has had a satisfactory procurement outcome with regard to procurement of Medium Rescue Tenders [14 numbers] the contract for which was signed with M/s. Hi-tech Services, Pune for INR 156,180,000 [approx. US $2.2 Million]; the notification for award for tender for procurement of Hydraulic Platform [90 Meters] is likely to be issued by Feb-end 2020. PMU has prepared the draft bidding document for ‘Procurement of Services for Supply, Installation and Commissioning of Integrated Public Alert and Warning System for Andhra Pradesh State with Wireless Emergency Alert Platform and Alert Aggregation Tool [AP-ALERT]’ with Bank support and will submit it through STEP for Bank’s clearance soon. Re-tender for Procurement of Multi-touch Video Wall Solution needs to be initiated after completion of DPR by APSDMA. The tender was canceled due to a failed procurement outcome. The re-tendering should be initiated by on priority. Scope of services for the contract with M/s. RMSI Private Limited, New Delhi signed on September 23, 2019 for INR 147,678,000/-[US $2.1 Million] on Multi Hazard Risk Assessment [MHRA] for a period of 20 months needs to be amended to include a year-long subscription of ECMWF and CFAN model data. PMU also needs to commence the process for re-tendering for procurement of In-house Data Center for SDMA, and of Multi-touch Video Wall Solution after completion of DPR by APSDMA which met with a failed procurement outcome. STEP has not been updated by PMU.

52. PPR for the project for contracts awarded during the period July 1, 2018-June 30, 2019 was carried out during February 6-9, 2020 and the broad findings were discussed during the review. The report is under finalization and will be shared by the Bank by end-April 2020.

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