Water Supply Scheme for Tete Settlement (GAR PNG 50372)

Project Administration Manual

Project Number: 50372-001

Grant Number: G0638

November 2019

Papua New Guinea: Water Supply Scheme for Tete Settlement

ABBREVIATIONS

ADB – Asian Development Bank

EA – executing agency

IA – implementing agency

PNG – Papua New Guinea

PRCF – People’s Republic of China Poverty Reduction and

Regional Cooperation Fund

WASH – water, sanitation and hygiene

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 6

A. Allocation and Withdrawal of Grant Proceeds 7 B. Detailed Cost Estimates by Financier 8 C. Contract and Disbursement S-Curve 9 D. Financial Management 9

V. PROCUREMENT AND CONSULTING SERVICES 15

A. Advance Contracting 15 B. Procurement of Works and Consulting Services 15 C. Procurement Plan 15 D. Consultant's Terms of Reference 18

VI. SAFEGUARDS 19

VII. GENDER AND SOCIAL DIMENSIONS 19

VIII. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND

COMMUNICATION 19

A. Project Design and Monitoring Framework 19 D. Monitoring 22 E. Evaluation 22 F. Reporting 22 G. Stakeholder Communication Strategy 23

IX. ANTICORRUPTION POLICY 23

X. ACCOUNTABILITY MECHANISM 23

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 23

ANNEX 1: Safeguards Implementation Checklists And Outline Contents For Monitoring Report 24

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 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.

The Department of National Planning and Monitoring (DNPM) and the National Capital District Water and Sewerage Limited Trading (Eda Ranu) 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 DNPM and Eda Ranu of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

At grant negotiations, the recipient and ADB shall agree to the PAM and ensure consistency with the grant agreement. Such agreement shall be reflected in the minutes of the grant negotiations. In the event of any discrepancy or contradiction between the PAM and grant agreement, the provisions of the grant agreement shall prevail.

After ADB Management approval of the project's Grant Assistance Report, 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 project will improve access to safe water in Tete settlement in Port Moresby, Papua New Guinea (PNG).1 PNG is the largest and most populated Pacific nation, with a population of at least 8.15 million. The urban population of the capital Port Moresby is estimated at about 800,000, of which more than half live in informal settlements. While the urban growth rate is

around 2%, growth rates in informal settlements of between 5% and 8% have been reported.2 This rapid urbanization has contributed significantly to a growing landless class living in squatter and informal settlements with limited or no access to basic social services. These settlements are now an established feature of the urban landscape in Port Moresby.

2. The project will include (i) detailed design of water supply infrastructure for Tete settlement;3 (ii) due diligence activities; (iii) civil works associated with the construction of water supply infrastructure, including testing and commissioning; (iv) community mobilization including awareness activities and training a community water, sanitation and hygiene (WASH) committee;4 and

(v) regional knowledge sharing associated with the project.5 The financial viability of the project and the WASH management model developed will also be assessed, to better enable Eda Ranu to assess the feasibility of future water supply investments in settlement areas.

3. These solutions will result in increased access to safe water supplies in Tete. The impact

the project is aligned with is the improved health of the peri-urban population.6 Outputs include: (i) new water supply infrastructure constructed, including a pipeline and a storage tank; (ii) Tete community sustainably manages its water supply via the newly formalized community WASH committee; and (iii) management model for community-managed water supply in urban informal settlement areas is developed.

II. IMPLEMENTATION PLANS A. Project Readiness Activities 4. The government has done the following (as of 28 November 2019):

(i) Appointed Department of National Planning and Monitoring (DNPM) as the

executing agency; (ii) Appointed Eda Ranu as the implementing agency, and GM (Technical) as Project

Director; (iii) Agreed with ADB on joint recruitment of the WASH NGO; (iv) Agreed that the project management unit (PMU) will sit within Eda Ranu;

1 The project is aligned with the PNG National Water, Sanitation and Hygiene (WASH) Policy, PNG Vision 2050, the

Development Strategic Plan 2010-2030 and the corporate plans of state-owned enterprises. The project is also in line with Sustainable Development Goal 6: Ensure availability and sustainable management of water and sanitation for all.

2 World Bank, Water and Sanitation Program, United Nations Human Settlements Programme (UN Habitat), UNICEF and Pacific Region Infrastructure Facility (2015). Unsettled: Water and Sanitation in Urban Settlement Communities of the Pacific.

3 Surveys will be undertaken as required. Climate change risks will be considered in the project design. 4 Committee to be trained in WASH advocacy and basic system maintenance. Eda Ranu has indicated that it supports

maintenance activities in other similar small supply schemes in settlement areas but encourages the community to play a role in basic front-line maintenance.

5 The Pacific Water and Wastewater Association may be engaged for South-South knowledge sharing activities.

6 Health is one of the Government’s sixteen critical policy and program areas identified in the Critical Activity Matrix, in

Government of Papua New Guinea Department of National Planning and Monitoring. 2015. Papua New Guinea Medium Term Development Plan 2 2016-2017. Waigani.

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(v) Agreed to use the project grant funds for (a) detailed design of water supply

infrastructure for Tete settlement; (b) due diligence activities; (c) civil works associated with the construction of water supply infrastructure, including testing and commissioning; (d) community mobilization including awareness activities and training of community WASH committee; and (e) regional knowledge sharing associated with the project; and

(vi) Agreed on procurement support via a separate ADB regional technical assistance7 for (a) project procurement risk assessment, (b) procurement training, (c) preparation of bidding documents, and (d) procurement up to and including contract award.

ADB. 2017. Regional: Building Project Implementation Capacities in the Pacific. Manila.

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B. Overall Project Implementation Plan 5. The chart below shows the overall project implementation schedule.

Table 1: Overall Project Implementation Plan

2019 2020 2021

Milestone Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Grant approval (ADB President)

Grant agreement signing

Grant effectiveness

WASH advisory support to Tete

RFP (NGO)

Contract award (NGO)

Prepare bidding documents (works)

Advertise works package

Support to evaluation and contract award

(works)

Contract award (works)

Works

NGO engagement

Grant close Source: Asian Development Bank.

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities Table 2: Project Implementation Organizations Roles and Responsibilities

Project Implementation Management Roles and Responsibilities

Organizations

Department of National ➢ Coordinate appropriate government representation for grant

Planning and Monitoring negotiations, grant signing and grant effectiveness (Executing Agency) ➢ Monitor project progress and advise Eda Ranu to take corrective

action to prevent significant variations and deviations from

schedules and budgets

➢ Provide selected support to the Eda Ranu - project management unit

Project steering committee

➢ PSC is chaired by the Managing Director of Eda Ranu and includes representatives from National Capital District Commission (NCDC), DNPM, CEPA, Department of Health, Department of Education, and Department of Treasury.

➢ Oversee implementation of the project ➢ Monitor project progress and cooperatively resolve issues

hindering progress

➢ Guide the executing and implementing agencies

Eda Ranu (Implementing ➢ Overall responsibility for project implementation Agency) ➢ Overall responsibility for financial management including

submitting required annual audit reports and financial statements

to ADB

➢ Lead the project’s procurement actions

➢ Submit withdrawal applications to ADB via the Department of Treasury

➢ Establish a Project Management Unit (PMU) which will be

responsible for day to day implementation of the project

➢ Recruit in a timely manner the required specialists to the PMU

➢ Select, engage, and supervise works and consultants

➢ Ensure timely bidding and award of contracts ➢ Oversee environmental safeguards for the project

Eda Ranu - Project Management Unit (PMU) ➢ Assist Project Director in project management functions,

including monitoring and evaluating project activities and outputs

and reporting the findings to the Project Director by monthly

progress reports

➢ Implement the environmental assessment and review framework

➢ Prepare and update safeguards due diligence reports and plans and ensure that the environmental management plan (EMP) and

other safeguard measures as required are integrated into the

tender documents for the turnkey contract. Prepare quarterly reports that will be incorporated into the semi-annual safeguards monitoring reports to be submitted to ADB.

➢ Review and verify documents submitted by consultants and

contractors

➢ As required, assist the contractor to prepare the site-specific construction EMP (CEMP)

➢ Review and approve the CEMP

➢ Monitor compliance with approved safeguards reports and plans and the approved CEMP

➢ Review invoices and payments to consultants and contractors

➢ Provide day-to-day supervision of project implementation including civil works

4

Project Implementation Management Roles and Responsibilities

Organizations

Project Accountant ➢ Establish and administer a financial management system for the

(within PMU) project in accordance with the relevant ADB guidelines

5

Project Implementation Management Roles and Responsibilities Organizations

concerning administration of disbursements, and arrangement of

direct payments to contractors

➢ Provide the necessary accounting services to ensure effective project administration

➢ Provide inputs to the monthly progress reports

➢ Coordinate with the Auditor General’s Office for, and arrange annual auditing of, the project account, ensuring that ADB’s

requirements of audit are met

➢ Review the contractor’s progress claims and certify them for

payment in coordination with the Project Director

➢ Initiate timely disbursement of project funds in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from

time to time)

➢ Record the Government’s in-kind contributions to the project

ADB ➢ Project administrator of PRCF

➢ Conduct regular project reviews

➢ Monitor and support project implementation and compliance with ADB’s policies and procedures in relation to technical, economic,

financial,procurement,safeguards,governance,and

anticorruption policies and procedures

➢ Overall coordination and advisory support

PRCF ➢ Project financier

➢ May participate in joint project reviews ➢ Participate in monitoring of project implementation ADB = Asian Development Bank, PRCF = People’s Republic of China Poverty Reduction and Regional Cooperation Fund. Source: Asian Development Bank.

B. Key Persons Involved in Implementation Executing Agency Department of National Planning Officer's Name Takale Tuna and Monitoring Position WASH PMU Coordinator Telephone +675 328 8541 Email address takale_tuna@planning.gov.pg Office Address Level 3, Vulupindi Haus Waigani, N.C.D. Papua New Guinea

Implementing Agency Officer’s Name Lot Gedisa Zauya Eda Ranu Position General Manager Technical Telephone +675 7501 0287 Email Address lzauya@edaranu.com.pg

Asian Development Bank Staff Name: Jingmin Huang Urban Development, Water Position: Director Supply and Sanitation Division Telephone No.: +63 2 8632 6181 Email address: jhuang@adb.org

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Mission Leader Staff Name: Alexandra Conroy

Position: Urban Development

Specialist Telephone No.: +63 2 8683 1932 Email address: aconroy@adb.org

C. Project Organization Structure

Project Steering Committee Executing Agency (DNPM) (PSC)

Implementing Agency - Eda Ranu Project Director (Part-time) concurrently GM (Technical)

Project Management Unit

- Project Manager - WASH Advisor (international consultant, part-time from DNPM WASH PMUa) - WASH national officer (part-time from DNPM WASH PMU) - Accountant (national consultant, intermittent) - Procurement specialist (international consultant, intermittent) - Social Development and Gender Specialist (national consultant, part-time) - Environment safeguards specialist (part-time from Eda Ranu)

Turnkey (EPC) contractor - Surveys - Detailed design - Construction &

commissioning

NGO

- Community engagement - WASH program

a Within DNPM is the WASH Project Management Unit (PMU), which will evolve into the National Water, Sanitation and Hygiene Authority (NWSHA) in 2020. The WASH PMU is the lead organization for the WASH sector in PNG and is responsible for sector policy development and implementation and planning. Source: Asian Development Bank

IV. COSTS AND FINANCING 6. The project is estimated to cost $930,000 including contingencies, of which $800,000 will be a grant from PRCF and administered by ADB. Details are shown in the following tables. The estimated costs will be subject to detailed design and procurement. The executing and implementing agencies will provide in-kind counterpart support in the form of project management.

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Table 3: Cost Estimates ($ million)

Item Amounta Share of Total (%) A. Base Costb

1. Output 1: New water supply infrastructure constructedc 0.83 88.71 2. Output 2: Tete community sustainably manages its water 0.04 4.73

supply

3. Output 3: Management model for community-managed water 0.01 1.18 supply in urban informal settlement areas is developed

Subtotal (A) 0.88

B. Contingenciesd 0.05 5.38Total (A+B) 0.93 100.00

a Includes taxes and duties of $0.08m. Such amount does not represent an excessive share of the project cost. The

government will finance taxes and duties of $0.08m by exemption. b In 2018 prices.

c Includes the government’s in-kind contribution for project management.

d Physical contingencies computed at 5.5% for civil works. Price contingencies computed at 1.5%. Source: Asian Development Bank

Table 4: Indicative Financing Plan

Source Amount ($ million) Share of Total (%) People’s Republic of China Poverty Reduction and Regional

Cooperation Fund (grant) 0.80 86.02% Government (in-kind contribution) 0.13 13.98% Total 0.93 100.0% Source: Asian Development Bank.

A. Allocation and Withdrawal of Grant Proceeds

Table 5. Allocation and Withdrawal of Grant Proceeds

No Category Amount of Grant Allocated Basis for Withdrawal from the

($ million) Grant Account

1 Works, services and contingencies a 0.80 100% of total expenditure claimedb

Total 0.80

a Includes contingencies of $0.05m b Exclusive of taxes and duties. Source: Asian Development Bank

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B. Detailed Cost Estimates by Financier

Table 6: Detailed Cost Estimates by Financier

PRCF Government Total Cost

Amount % of cost category Amount

% of Cost

Category Amount

(Taxes and

Duties)a

Item {A} {A/C} {B} {B/C} {A+B=C} {D}

A. Investment Costs

1. Turnkey Contractb 0.70 93.33% 0.05 6.67% 0.75 0.07

2. Consultants b. Capacity Development 0.05 100.00% 0 0.00% 0.05 0.01

Total Base Cost 0.75 93.75% 0.05 6.25% 0.80 0.08

B. Contingencies 0.05 100.00% 0 0.00% 0.05 0.01 Total Project Cost (A+B) 0.80 0.05 0.85 0.08

% Total Project Cost 94.12% 5.88%

a Taxes and duties of $0.08 million to be financed by the government through exemptions. Numbers may not add precisely due to rounding. b Includes Government’s in-kind contribution to project management.

Source: Asian Development Bank

C. Contract and Disbursement S-Curve

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

$ (

mill

ion

s)

CA Disbursement

9

D. Financial Management

• Financial Management Assessment

7. The financial management assessment (FMA) was conducted in March 2018 in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects and the Financial Due Diligence: A Methodology Note. The FMA considered the capacity of Eda Ranu, including funds-flow arrangements, staffing, budget, asset management, accounting and financial reporting systems, and internal and external auditing arrangements. Based on the assessment, the key financial management risks identified are (i) lack of awareness of ADB’s procurement and disbursement procedures; (ii) delays in the conduct of independent audit; and (iii) inadequate processes to set aside funds for repair and maintenance of investments. It is concluded that the overall premitigation financial management risk of DNPM and Eda Ranu is substantial.

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Table 6: Financial Management, Internal Control, Risk Assessment and Time-Bound

Action Plan

Weakness, Risk Rating Risk Description Mitigating Action Responsibility

and Risks and Time Frame

Inherent

Risk:

Country Moderate PEFA has identified risks ADB requires that PMU staff

specific relating to delays in separate records

submission of government and financial

financial statements and statements are

having dual information prepared for the

systems, IFMS and project so this should

PGAS, which not be affected by

compromises data delays in other

integrity. There is also government

generally observed risk of processes.

weak records

management.

Entity Substantial Eda Ranu has not ADB and PMU will PMU and

specific provided its audited provide necessary Project team to

financial statements which support to Eda Ranu follow up with

indicates some to enable it to Eda Ranu on

delinquence in provide the audited the submission.

compliance. financial statements

and ensure the

regular independent

audit of the project

financial statements.

Overall Substantial Inherent

Risk

A. Control

Risk:

1. Implementing Substantial Eda Ranu’s finance ADB will arrange for ADB and PMU.

entity division is staffed training of PMU staff

3 staff from IA have

attended ADB’s

CPD workshop and

loan disbursement

seminar in Mar

2019.

with qualified finance including available

person and uses relevant online

adequate accounting courses to help

software. There is ensure readiness in

risk that they have project

not implemented a implementation, and

foreign funded training on ADB’s

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project before. Loan disbursement

handbook. PNRM

will support project

implementation

through regular visits

with the PMU, in

addition to missions.

The PMU will also

receive guidance on

setting up a financial

system for the

project.

2. Funds flow Low The project will use PMU

turnkey contracts

and direct payment

to contractors so

there is less risk at

the project level.

3. Internal audit Low Eda Ranu has no Project Team and PMU

internal audit unit but PMU to explore

Kumul Consolidated setting up internal

Holdings (KCH) and audit function as Eda

Water PNG has Ranu is subsumed to

internal audit Water PNG.

function

4. Staffing Low Eda Ranu’s finance

division is staffed

with technically

qualified staff and

guided by a foreign

advisor.

5. Accounting Moderate Eda Ranu uses an Project Team to Project

policies and accounting esnure allocation for Team/Eda

procedures software repairs and Ranu

developed in maintenance in Eda

Australia and is Ranu’s annual

both advanced budget

and can generate

timely reports.

However, there

were observed

weaknesses in

asset

management.

6. External Substantial Eda Ranu has not Project Team will Project Team

audit submitted its audited remind PMU of ADB and PMU

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financial statements policies for non-

for 2015 to 2017 compliance and will

constantly remind on

submission. The

AGO which

recruits/assigns

independent auditors

should monitor

accordingly. Funds

for external audit will

be set-aside from

project funds.

7. Reporting Low The Government

and uses dual reporting

Monitoring system. However,

Eda Ranu will follow

the system adopted

by KCH.

8. O&M Substantial The sustainability of Budgetary resources IA and local

project investment should be provided government; to

will be undermined if under the agency’s ensure annual

no budget is annual budget; there budget

provided for repair should be a clear allocation.

and maintenance. process if funding

will be provided from

Government’s

budget sources.

Overall control Moderate risk

Overall Substantial combined risk

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• Disbursement

1. Disbursement Arrangements for PRCF Funds

8. The ADB-administered cofinancier funds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time)8, and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.9 Project staff must take the online course as part of the preparatory training before withdrawals are made from the grant account to help ensure efficient disbursement and fiduciary control. 9. Only direct payment procedures will be used under the project. Reimbursement, imprest account and Statement of Expenditures will not be used. The PMU will be responsible for preparing disbursement projections. Eda Ranu will maintain project accounts with the support of the PMU’s project accountant. There will be no cash counterpart contribution. The PMU will be responsible for collecting supporting documents, preparing withdrawal applications and submitting to the Department of Treasury. The Department of Treasury will be responsible for screening withdrawal applications and submitting to ADB. All activities will be undertaken in compliance with PNG’s Public Finances Management Act.

Figure 1: Project Fund Flow Diagram 10. Before the submission of the first withdrawal application (WA), the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal

8 The handbook is available electronically from the ADB website (http://www.adb.org/documents/ loan-disbursement-handbook

9 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning

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applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per WA is stipulated in the Loan Disbursement Handbook

(2017, as amended from time to time). The borrower should ensure sufficient category and contract

balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements (CPD)10 system is encouraged for submission of withdrawal applications to ADB.

• Accounting

11. Eda Ranu will maintain separate books and records by funding source for all expenditures incurred on the project following accrual-based accounting following the International Financial Reporting Standards. Eda Ranu, with the support of the PMU’s project accountant, will prepare project financial statements in accordance with the accounting laws and regulations which are consistent with international accounting principles and practices.

• Auditing and Public Disclosure

12. Eda Ranu will cause the detailed project financial statements to be audited in accordance with International Standards on Auditing by an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by Eda Ranu.

13. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the grant were used only for the purpose(s) of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements (where applicable).

14. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor. 15. The government and Eda Ranu have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project

financial statements.11 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to 10 The CPD facilitates online submission of WA to ADB, resulting in faster disbursement. The forms to be completed

by the Borrower are available online at https://www.adb.org/documents/client-portal-disbursements-guide. 11 ADB’s approach and procedures regarding delayed submission of audited project financial statements:

(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

(ii) When audited project financial statements are not received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a) inform the executing agency of ADB’s actions; and (b) advise that the loan may be suspended if the audit documents are not received within the next 6 months.

(iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.

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confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

16. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.12 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.13

V. PROCUREMENT AND CONSULTING SERVICES A. Advance Contracting 17. The recruiting of the turnkey contractor and NGO will be initiated before ADB’s approval of the project grant. Eda Ranu has agreed to jointly recruit the NGO with ADB. All advance contracting will be undertaken in conformity with ADB’s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time. The issuance of invitations to bid under advance contracting will be subject to ADB approval. DNPM and Eda Ranu have been advised that approval of advance contracting does not commit ADB to finance the project. B. Procurement of Works and Consulting Services

18. All procurement of works will be undertaken in accordance with ADB’s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). A contractor will be engaged through a turnkey contract encompassing (i) surveys; (ii) detailed engineering design of water supply infrastructure; (iii) procurement of all necessary equipment and materials; and (iv) construction and commissioning. Open competitive bidding procedures will be used for the turnkey contract, estimated to cost $750,000 including contingencies. ADB has reviewed the public procurement laws of the central and state governments to ensure consistency with ADB’s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). The procurement plan is outlined in Section C.

19. Consulting services include the engagement of an NGO to undertake community engagement and WASH program implementation. The NGO will be recruited according to ADB’s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).The terms of reference for consulting services to be provided by the NGO are detailed in Section D. The NGO’s inputs are estimated to include 12 person-months national inputs. The NGO will be engaged using quality-based selection (QBS). C. Procurement Plan

Basic Data Project Name: Water Supply Scheme for Tete Settlement Project Number: 50372-001 Approval Number:

12 Public Communications Policy: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications 13 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2011.

Public Communications Policy. Paragraph 97(iv) and/or 97(v).

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Country: Papua New Guinea Executing Agency: Department of National Planning and Monitoring Project Procurement Classification: B Implementing Agency: Eda Ranu Procurement Risk: Substantial

Project Financing Amount: $0.8 million Project Closing Date: June 2021 ADB Financing: $0.00 Cofinancing (ADB Administered): $0.8 million Non-ADB Financing: $0.00 million

Date of First Procurement Plan 5 April 2018 Date of this Procurement Plan: 28 Nov 2019

A. Methods, Thresholds, Review and 18-Month Procurement Plan

1. Procurement and Consulting Methods

20. Except as the ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works

Method Threshold Comments Open Competitive Bidding for Works N/A

Turnkey contract includinggoods and works

Consulting Services

Method Comments Quality-Based Selection NGO will be recruited using QBS

Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

21. The following table groups smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.

Goods and Works Review Advertis

Package General

Estimate Number Procurement [Prior /

Bidding ement

Descrip of Post/Post Date Comments

Number d Value Method Procedure

tion Contracts (Sampling (quarter/

)] year)

1 Turnkey $750,000a 1 Open Prior 1S1E Q4 2019

contract

competitive bidding Advertising:

Nationally No. of Contracts: 1 Prequalification of Bidders: No Domestic Preference Applicable: No

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Bidding Document: Small Works

a Includes contingencies of $50,000. Excludes taxes and duties.

Consulting Services

Gener

Advertise

m

Review ent

Package al Estimate Number of Recruitment Type of Commen

(Prior / Date

Number Descri d Value Contracts Method Proposal ts

Post) (quarter/

ption

year)

2 WASH $50,000b 1 QBS Prior Q3 2019 BTP

NGO

b Includes contingencies of approximately $500. Excludes taxes and duties.

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D. Consultant's Terms of Reference Outline Terms of Reference for Turnkey Contractor 22. The firm will:

(i) Arrange the recruitment of surveyors and required equipment to undertake surveys to facilitate detailed design of the water supply network. The surveys are expected to include topographic and cadastral surveys.

(ii) Prepare survey reports which document the surveys, investigations and tests which have been completed. All survey data will be submitted as digital data readable with most common computer software.

(iii) In consultation with Eda Ranu, the utility’s concept designs for water supply infrastructure in Tete settlement will be used by the firm to prepare detailed engineering designs for a small-scale water supply scheme for the settlement, which is expected to include pipelines, storage tanks (depending on hydraulic design) and ancillaries e.g. bulk mechanical meters, critical spares. The designs will consider the project’s climate risk and vulnerability assessment. The firm will provide information to support an assessment of costs of adapting to climate change for the project.

(iv) Based on detailed design and the approved environmental assessment, and prior to commencement of any physical works (including site preparation and clearing and grubbing etc) , update the environmental management plan (EMP) and prepare a site-specific construction EMP (CEMP) which will establish exactly how the contractor will comply with the EMP safeguard requirements;

(v) Procure all goods, materials and equipment and undertake construction works; (vi) Commission the new infrastructure according to a set of predetermined “pass” criteria,

for the utility’s acceptance (vii) Prepare as-built drawings for handover to Eda Ranu. (viii) Assist the PMU to provide relevant information for progress reporting and monitoring

and evaluation of project activities; (ix) Ensure measures to minimize environmental impacts during construction in-line with

the EMP. Outline Terms of Reference for NGO 23. The entity will design and implement a Hygiene Promotion program with consideration of

the project’s gender action plan. It will include: (i) Conduct assessment of the Tete WASH Household Survey and identify key health and

hygiene challenges to be addressed by the Hygiene Promotion program; (ii) Conduct an assessment of the internal social/population dynamics of Tete Settlement

and develop an engagement plan to reach all residents with health and hygiene messages, to include how to reach women, men, young women, young men;

(iii) Develop Hygiene Promotion materials and activities to communicate key messages through a range of media/approaches, could include participatory education, theatre, role play, written materials / leaflets/posters;

(iv) Identify and train key members of the community to become Hygiene Promotion Trainers and members of the WASH Committees;

(v) Working with Eda Ranu and the WASH PMU, prepare, document, and promote, through the Hygiene Promotion program, a range of simple improvements to existing toilets that will make them an effective barrier to the transmission of disease;

(vi) Work with the Block WASH Committees to develop an approach to monitoring existing toilets and identifying high risk areas, could include the creation of a WASH Monitor position as part of the Block WASH Committee, likely to be the Hygiene Promotion Trainer (as described in 14 (iv));

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(vii) Carry out the Hygiene Promotion Program in Tete Settlement including supporting/conducting promotion activities with all identified groups, that convey key messages and promote behaviour change relating to handwashing at critical times, infant faeces management, menstrual hygiene management, using an effective toilet, storing and using water;

(viii) Provide inputs to the stakeholder communication plan which will be prepared by the PMU. Support the Environment Specialist and Gender and Social Development Specialist and other responsible experts in managing and resolving grievances during project implementation;

(ix) Support the PMU’s WASH Advisor in the development of the hygiene promotion component of a management model for community-managed water supply schemes in settlement areas;

(x) Support Eda Ranu’s efforts to train the community/standpipe WASH committee/s (at least 50% of whom will be women) in basic system management and maintenance;

(xi) Support surveys and monitoring and evaluation efforts for the project which will be led by the PMU and may include a baseline survey,1 endline survey and other surveys as required. Qualitative data will be collected on the difference being made to women’s lives;

(xii) Ensure the collection of sex-disaggregated data under the guidance of the Gender and Social Development Specialist in the PMU.

VI. SAFEGUARDS

23. The project has been classified as Category B for environment, Category C for involuntary resettlement, and Category C for indigenous persons. An Environmental Assessment and Review Framework (EARF) and Due Diligence Report have been prepared for the project. Eda Ranu, via the PMU, will have overall responsibility on the project’s compliance with safeguard requirements, and will coordinate with the relevant government agencies, including the Conservation and Environmental Protection Agency (CEPA), as needed. The PMU will be responsible for following the procedures set out in the EARF and complying with PNG environmental laws and ADB’s Safeguards Policy Statement 2009 (SPS), and will obtain necessary safeguard clearances from CEPA and ADB prior to start of civil works. As per the EARF, the environment safeguards specialist in the PMU will prepare the environmental assessment and submit to ADB for review and clearance and then to CEPA for clearances under the country system. The environmental management plan (EMP) from the cleared environmental assessment will be included in the tender for the turnkey contract. The turnkey contractor will be responsible for preparing its site-specific construction EMP (CEMP) based on detailed design, the EMP from the cleared environmental assessment and the construction methodology for the works. Prior to commencement of any physical works, the CEMP will be submitted to the PMU and ADB for review and the PMU will approve the CEMP. The turnkey contractor will also be responsible for obtaining any other requisite permits (waste, water discharge etc.) required for the project. The PMU will monitor contractor compliance with the approved CEMP during construction.

24. Prohibited investment activities. Pursuant to ADB’s SPS, ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS.

1 The baseline survey design will be discussed with the PMU, noting data collected during a household survey in

2017.

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VII. GENDER AND SOCIAL DIMENSIONS

The NGO engaged through the project will be responsible for ensuring that action plans for gender, consultation and participation are implemented. This will be overseen by a social development and gender specialist (national consultant) and WASH specialist (international consultant) in the Project Management Unit. The gender action plan is included in the table below.

GENDER ACTION PLAN

Output Target and Activities Timeline Means of

Verification

Responsibility Budget

Required

Output 1: New

water supply

infrastructure

constructed.

Establish water connections to enable water access to 100% of female-headed households (Baseline = 0)

Project meetings and consultations during project design and implementation include at least 50% women. Women-only project orientation and design sessions will be conducted. (Baseline = 0)

Contractors will employ at least 10% women. Orientation and guidance on labor standards, gender equality in wages, safety and hygiene to all staff at commencement of work (Baseline=0)

Separate toilet/sanitation facilities for men and women workers in all project construction sites (Baseline: 0)

Conduct end-line survey to

evaluate the project impact including indicators related to gender differentiated impacts of water supply such as time-poverty, waterborne diseases and security.

Q1 2019-

Q4 2020

Social

Development

and Gender

Specialist

(national)

collects sex-

disaggregated

data on water

connections

and meeting

attendance as

part of project

reporting.

Number of

contractor

orientation

sessions,

women staff

employed, toilet

facilities for

both men and

women

reported in

project progress

report

End-line survey

report.

Eda Ranu

with support

from

PMU/Social

Development

and Gender

Officer

Part of the

budget

allocated for

Output 1 and

contractor’s

budget

Output 2: Tete

community

sustainably

manages its

water supply

Bi-annual WASH awareness trainings to community members using gender sensitive and appropriate materials with at least 50% women participation (Baseline = 0)

WASH committee established with at least 50%

Q1 2019

– Q4

2020

Materials

available for

review and data

collected by

Social

Development

and Gender

Specialist as

NGO

contracted by

the Project

and

PMU/Social

Development

and Gender

Specialist

Part of the

budget of the

contracted

NGO and

PMU.

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Output Target and Activities Timeline Means of

Verification

Responsibility Budget

Required

women members (Baseline=0)

At least two trainings and capacity building provided to all the WASH committee members composed of 5 women out of 10 trainees (Baseline =0)

Assessment of potential

livelihood program with a focus on women is conducted (Baseline=0)2

part of project

progress

Training

completion

report with

attendance

attached

Livelihoods

assessment

report.

Output 3:

Management

model for

community-

managed

water supply

in urban

informal

settlement

areas is

developed

At least 50% women participation in meetings and consultations in preparing community-managed water supply scheme model (Baseline=0)

Design of the proposed model will consider issues affecting women (e.g. menstrual hygiene management) and participation in water use and management (Baseline=0)

Sex-disaggregated data/relevant women issues on water access collected for reports (baseline and endline survey) and at least two documentations/knowledge products disseminated in regional forums (Baseline=0)

Q1 2019

– Q4

2020

Meetings

attendance and

records

Materials on

design ready for

review and data

collected by

PMU/Social

Development

and Gender

Specialist.

Contracted

NGO with

support from

PMU/Social

Development

and Gender

Specialist

Part of NGO

budget under

Output 3

Implementation

The PMU Project Manager, with support from the Social Development and Gender Specialist (national) with

guidance from the WASH advisor, are responsible for the overall effectiveness of gender mainstreaming in the

project. The Social Development and Gender Specialist will be responsible for community engagement and

participation, overseeing trainings and awareness raising activities, liaising and working closely with the NGO and

contractors, and ensuring gender elements are incorporated in the project design and implementation. Gender

awareness trainings among the project staff and government counterparts will also be conducted by the Social

Development and Gender Specialist and supported by the WASH Advisor. Semi-annual GAP progress report will be

submitted to the government and ADB. Sex-disaggregated data will be collected and required inputs provided to the

project progress monitoring report.

2 The assessment is envisaged to inform the government’s program in assisting informal settlers in Port Moresby. The findings will also be explored in subsequent ADB interventions in the sector and disseminated to other development partners working in similar projects/programs.

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VIII. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND

COMMUNICATION A. Project Design and Monitoring Framework

Impact(s) the Project is Aligned with

Health of peri-urban population is improveda

Performance Indicators

with Targets and Data Sources and

Results Chain Baselines Reporting Risks

Outcome

Access to safe water a. By 2021, 100% of a. ADB’s annual project Demand for safe water

Supplies in Tete is Tete’s population has monitoring report exceeds supply due to

increasedb access to safe water from higher than anticipated

within Tete (2018 population growth.

baseline: <10%)

Outputs

1. New water supply infrastructure constructed

1a. By 2020, a new 1a. ADB’s annual project monitoring report

Security conditions in Tete deteriorate.

pipeline, storage tank and community standpipes

are constructed (2018

baseline: 0)

1b. By 2020, at least 50L/p/d is supplied to

Tete population (2018 baseline: <10L/p/d. Half of Tete’s population are women)

2. Tete water supply 2a. By 2019, community 2a. ADB’s annual

scheme is managed WASH committee’s project monitoring

by the community responsibilities are report

formalizedc (2018

baseline: NA)

2b. By 2019, community 2b. ADB’s annual

WASH committee has 10 project monitoring

persons trained in basic report

system maintenance, of

whom 5 are women (2018

baseline: NA)

2c. By 2019, community 2c. ADB’s annual

WASH committee has 10 project monitoring

persons trained in WASH report

promotion, of whom 5 are

women (2018 baseline:

NA)

2d. By 2020, Eda Ranu collects tariffs from 100% of water users with support from the WASH committee

2d. ADB’s annual project monitoring report

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Performance Indicators

with Targets and Data Sources and

Results Chain Baselines Reporting Risks

(2018 baseline: NA)

3. Management model

for community-managed water supply in urban informal settlement area is developed

3a. By 2020, a gender-responsive model for a community managed water supply scheme in settlement areas is documented (2018 baseline: 0) 3b. By 2020, the gender responsive model for community-managed water supply scheme is shared nationally and regionally (2018 baseline: not applicable)

3a. Model produced as part of project outputs

Key Activities with Milestones

1. New water supply infrastructure 1.1 A survey of Tete settlement is conducted. (completed in Nov 2017) 1.2 Community is engaged with respect to interventions and community WASH management model, with

strong emphasis on women’s participation. (ongoing) 1.3 Concept designs of water supply pipelines and storage tank/s are completed, in consultation with

the community. (Q1 2019) 1.4 New water supply infrastructure and meters are constructed and commissioned. (Q3 2020) 2. Effective community management of Tete water supply scheme 2.1 WASH promotion activities commence. (Q2 2019) 2.2 Formalization of community WASH committee,c designation of roles and responsibilities and draft management model developed. (Q2 2019) 2.3 Selected community WASH committee members trained in WASH promotion. (Q2 2019) 2.4 Selected community WASH committee members trained in basic system maintenance. (Q4 2019) 2.5 Community water committee undertakes management of water supply infrastructure including supporting Eda Ranu to collect tariff from 100% of water users (Q4 2020) 3. Model developed for community managed water supply scheme in settlement areas 3.1 Model describing community managed water supply scheme in Tete, lessons learned and best practices, and identification of potential replication and scale-up opportunities documented. (Q2 2020) 3.2. Knowledge sharing activities undertaken within PNG and regionally. (Q4 2020)

Project Management Activities

Tender, award and manage contracts until Dec 2020 Provide timely progress reports until Dec 2020 Carry out regular accounting and annual audits until Dec 2020

Implement, monitor and follow up safeguards requirements in a timely manner until Dec 2020

Inputs PRCF: $0.8m (grant).

Assumptions for Partner Financing Not Applicable

PRCF = People’s Republic of China Poverty Reduction and Regional Cooperation Fund a The goal of the PNG National Water, Sanitation and Hygiene Policy 2015-2030 is to contribute towards improving the quality of life through (i) Reduction in morbidity and mortality caused by water-related diseases; (ii) Improved livelihood opportunities and economic growth through improved health and reduced economic and financial losses; and (iii) Increased equity of services between rural, peri-urban and urban areas, and to disadvantaged groups. Tete is one of 99 settlements in peri-urban areas of Port Moresby (UN Habitat. 2010. Port Moresby Urban Profile. http://www.fukuoka.unhabitat.org/projects/papua_new_guinea/pdf/Port_Moresby_March_2010.pdf accessed 7 February 2019).

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Performance Indicators

with Targets and Data Sources and

Results Chain Baselines Reporting Risks

b“Access” implies sufficient water to meet domestic needs is reliably available close to home. cThis could be via an updated Memorandum of Understanding with Eda Ranu, or otherwise.

Source: Asian Development Bank.

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D. Monitoring 26. Project performance monitoring. ADB, the executing agency and the implementing agency will conduct semiannual reviews throughout the implementation of the project as well as a mid-term grant review. The review will monitor (i) project output quality, (ii) implementation arrangements, (iii) implementation progress, and (iv) disbursements. The PMU will prepare quarterly monitoring reports, including disaggregated baseline data for output and outcome indicators. The quarterly reports will provide information necessary to update ADB's project performance reporting system.

27. Compliance monitoring. Compliance monitoring will be provided through regular quarterly progress reports and during regular ADB review missions.

28. Safeguards monitoring. The PMU will be responsible for monitoring and reporting safeguards implementation. The quarterly reports prepared by the PMU will include a section on safeguards. The information from the quarterly reports will be incorporated into the semi-annual safeguards monitoring reports to be prepared by the PMU and submitted to Eda Ranu and ADB. Eda Ranu and ADB will disclose the reports. Before commencing work, the contractor will prepare a site-specific CEMP which will establish how the contractor will comply with the EMP and achieve environmental safeguards (including identifying staff responsible for implementing and reporting on the CEMP and grievance redress mechanism). Monitoring of the contractor’s compliance with the approved CEMP will be undertaken by the environment safeguards specialist in the PMU. The ADB review missions will also check the progress on implementation of safeguard requirements. Annex 1 includes implementation checklists and an outline of the monitoring reports.

29. Gender and social dimensions monitoring. The Project's GAP will be implemented by the NGO and supervised by the PMU’s social development and gender specialist and WASH Advisor (international consultant) in the Project Management Unit. These specialists will be responsible for monitoring activities in accordance with the GAP. The PMU will include reporting on progress of GAP activities semi-annually on overall project activities to the ADB and the Government. This reporting will commence one year after the grant effectivity, and will be included in the project quarterly reports. E. Evaluation 30. ADB, the government and Eda Ranu will undertake semiannual reviews of the project to consider the (i) scope of the project; (ii) implementation arrangements; (iii) compliance with grant covenants; (iv) physical achievements against targets and milestones; and (v) project implementation issues requiring resolution or action. ADB will undertake a project completion review (PCR) of the project within 6 months of completing the project. F. Reporting

30. Eda Ranu, through the PMU, will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the implementing agency audited financial statement together with the associated auditor's report, should be adequately reviewed

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G. Stakeholder Communication Strategy

32. The PMU will prepare a stakeholder communication strategy and submit to ADB for review by the end of month 3 after grant effectiveness. As of November 2019, a template for the stakeholder communication strategy has been provided to the PMU and will be completed in discussion with the NGO and appended to the PAM. All communication will be in language suitable for the specific audience and will follow the ADB Public Communication Policy. The stakeholder strategy will incorporate the following components:

(i) Compilation of stakeholder communication activities already undertaken. (ii) Role of project steering committee in coordinating and communicating with

relevant government stakeholders. (iii) Public communication plan for disseminating information regarding project

development to the public who may be impacted by the proposed projects.

IX. ANTICORRUPTION POLICY 33. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.14 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the implementing agency and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to

participate in ADB-financed activity and may not be awarded any contracts under the project.15 34. To support these efforts, relevant provisions are included in the grant agreement and the bidding documents for the project.

X. ACCOUNTABILITY MECHANISM 35. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still

dissatisfied, should they approach the Accountability Mechanism.16

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 36. All revisions/updates during course of implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

No Date History Remarks 1 April 2018 Reflected as issued TOR and other updating

2 August 2018 Updates to processing timelines and other updating 3 December 2018 Updates to processing timelines and other updating 4 November 2019 Updates to procurement plan and other updating

22

14 Anticorruption Policy: https://www.adb.org/sites/default/files/institutional-document/32026/anticorruption.pdf 15 ADB's Office of Anticorruption and Integrity web site: https://www.adb.org/site/integrity/main

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

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ANNEX 1: SAFEGUARDS IMPLEMENTATION CHECKLISTS AND OUTLINE CONTENTS FOR MONITORING REPORT

PARD Safeguards Implementation Checklist: Environment

Date:

PROJECT INFORMATION Loan/Grant No.: Project Name:

Approval Date: Closing Date: Cumulative Progress (%):

Project Team Leader(s): Implementing Agency

1) Categorization

(Original) A B C FI

(additional financing, if any) A B C FI

(Please complete the following sections if the project has been categorized as A, B or FI)

2) Planning

Documents: EARF IEE/EIA No. of IEE/EIA _________ EMP

IEE/EIA Disclosed and Posted on ADB Website: Yes No If no, actions?

EMP Finalizeded or Updated after Detailed Design Yes No If no, actions?

CEMP submitted, reviewed and approved: Yes No If no, actions?

(Attach a list of subprojects and status if necessary.)

3) Institutional Setup

PIU/PMU Environment Staff Assigned: Yes No If no, actions?

If yes, Name: Since: /

(month) (year)

Environmental Specialist/Consultant Mobilized: Yes No If no, actions?

If yes, National Specialist's Name: Since: /

(month) (year)

If yes, International Specialist's Name: Since: /

Participation of Gov. Environment Agency/Division: Yes No If no, actions?

If yes, Name: Since: /

(month) (year)

Grievance Redress Mechanism Established: Yes No If no, why?

Allocation of Government Budget: Yes No If no, actions?

If yes, amount$:

4) Monitoring and Reports

Internal Monitoring System Established: Yes No If no, actions?

Compliance monitoring incorp. into Q Progress Reports: Yes No If no, actions?

External Monitor Engaged (if needed): Yes No If no, actions?

If yes, Name: Since: /

(month) (year)

Monitoring Report Submitted to ADB: Yes No If no, actions?

If Yes, provide information below

Baseline Report Report 1 Report 2 Report 3 Report 4

Submission Date (m/yr)

ADB Review Date (m/yr)

Web-posting Date (m/yr)

Name of ADB Reviewer

5) Field Review with Participation of Safeguard Specialist/Officer/Staff Consultant Yes No If no, actions?

If Yes, provide information below

Mission Date (m/yr)

Type of mission:

Participants (safeguard specialist/officer/staff consultants)

24

6) Compliance with Loan Covenants List of key covenants in loan and project agreement Item # Covenant Compliance rating* Describe status of compliace

*Note: Yes ; No; Not yet due Overall safeguard rating (e-Operation): S = Satisfactory; PS = Partly Satisfactory; US = Unsatisfactory 7) Status of Implementation of EMP Activities (Please provide a cross reference if it is already covered under Section 6 above) Items Yes/No Describe Implementation Status

8) Major Issues or Complaints (Cumulative)

Item Description

Issue

1 Proposed Action(s)

Follow-up Issues/Actions

Final Resolution of Issue

Issue

2 Proposed Action(s)

Follow-up Issues/Actions

Final Resolution of Issue

*Add rows as needed.

Prepared by: Confirmed by: Confirmed by:

Team Leader: Safeguard Specialist/Officer:

Date: Date: Date:

To: Sector Director/Country Director

cc: Project Team Leader; PARD Safeguard Specialist

IEE = initial environmental examination; EIA = environmental impact assessment; EMP = environmental management plan; FI = financial intermediary; MTR = mid-term review; PCR = project completion review; PIU/PMU = project implementation/management unit; TL = team leader; EARF = environmental assessment and review framework; SS = safeguard specialist

25

Suggested Outline of Monitoring Report – Environment

Heading/Section Contents

Introduction Brief background on the project and subproject; Institutional arrangements for project management and environmental management;

Monitoring Activities Who participated in the monitoring; Methodology for monitoring (whether checklists prepared etc); When the monitoring was undertaken and what period it covers; Summary of other monitoring undertaken in the period (i.e. form contractor’s monthly reports and if any survey/sample monitoring undertaken); Main activities – observations/inspections, consultations, interviews with contractor staff etc

Works in Progress Details of the works being undertaken, (with photographs); Include whether any environmental training/awareness has been provided to contractor staff in the period (what, by whom etc)

Monitoring Results and Actions Whether works and measures comply with the approved EMP/CEMP; Required Should follow sequence of items identified in EMP/CEMP and verify that

all mitigations measures noted are being implemented; Corrective actions cited (date to be resolved and person responsible on contractor team and verification by IA/HRMG)

Summary and Conclusions Summary of main findings; Main issues identified and corrective actions noted; Can include summary table which can be updated each period to track completion of actions required

Attachments Monitoring checklist (based on items identified in the EMP/CEMP) refer annex 1 Additional photographs Additional information as required

26

Checklist for Safeguard Supervision/Monitoring (Resettlement) Checklist for Safeguard Supervision: Involuntary Resettlement

PROJECT INFORMATION

Loan/Grant No.: Project Name:

Approval Date: Closing Date: Cumulative Progress (%):

Project Team Leader(s): Project Analyst:

1) Resettlement Categorization

(Original) A B C FI

(additional financing, if any) A B C FI

(Please complete the following sections if the project has been categorized as A, B or FI involving land acquisition/resettlement issues)

2) Resettlement Planning

Resettlement Planning Documents: RF RP Number of RPs_________ ESMS

RP Finalized or Updated after Detailed Design: Yes No If no, actions?

(Attach a list of subprojects and status if necessary.)

Final/Updated RP Disclosed and Posted on ADB Website: Yes No If no, actions?

Compensation Rates Approved by the Government: Yes No If no, actions?

3) Institutional Setup for Resettlement

PIU/PMU Resettlement Staff Assigned: Yes No If no, actions?

If yes, Name: Since: /

(month) (year)

Resettlement Specialist Consultant Mobilized: Yes No If no, actions?

If yes, Name: Since: /

(month) (year)

Grievance Redress Mechanism Established: Yes No If no, why?

Allocation of Government Budget: Yes No If no, actions?

If yes, amount$:

4) Resettlement Monitoring and Reports

Internal Monitoring System Established: Yes No If no, actions?

External Monitor Engaged (if needed): Yes No If no, actions?

If yes, Name: Since: /

(month) (year)

Monitoring Report Submitted to ADB: Yes No If no, actions?

If Yes, provide information below

Baseline Report Report 1 Report 2 Report 3 Report 4

Submission Date (m/yr)

ADB Review Date (m/yr)

Web-posting Date (m/yr)

Name of ADB Reviewer

5) Resettlement Field Review with Participation of Safeguard Specialist/Officer/Staff Consultant Yes No If no, actions?

If Yes, provide information below

Mission Date (m/yr)

Type of mission

Name of safeguard specialist/officer/staff consultants

27

Suggested Contents of Resettlement Monitoring Report

Heading/Section Contents

Introduction Brief background on the project/subproject and progress status The project’s category and planning documents (original, updated or new plans) on resettlement impacts Institutional arrangements and budget allocation for resettlement/social management; Arrangement for the monitoring

Monitoring Activities Methodology for monitoring (whether checklists prepared etc); What period the monitoring covers Main activities – site visits, consultations, survey etc

Monitoring Results and Actions Progress and performance in implementation of RPs and other Required programs (how their were implemented, what are the outputs, etc)

Results on consultations, disclosure and grievance redress (whether they have been effective, level of satisfaction of APs with various aspects of the RP, public awareness of the compensation policy and entitlements will be assessed among APs.) Whether the implementation comply with the approved RPs (e.g. whether compensation rates were at replacement cost, full payment made to all APs sufficiently before land acquisition; prompt attention to unforeseen damages or losses, to ensure APs are fully compensated for losses) Results on outcome (whether APs were able to restore livelihoods and productive activities) Compliance on monitoring and disclosure (whether reports have been submitted, posted on website) Whether any issues and corrective measures identified to achieve the RP objective. If yes, actions with target dates and responsible agency/person) Follow-up item/plan for next report

Summary and Conclusions Summary of main findings; Main issues identified and corrective actions noted; A table on follow-up action which can be updated each period to track completion of actions required including progress of the follow-up of problems and issues identified in the previous report

Attachments Monitoring checklist (based on items identified in the RPs) Photographs Additional information as required