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Project Number: 41122 Loan Number: L2843 20 December 2011
Georgia: Multitranche Financing Facility for the Road
Corridor Investment Program—Tranche 3 (Additional
Financing)
Project Administration Manual
Contents ABBREVIATIONS
I. PROJECT DESCRIPTION 1
II. IMPLEMENTATION PLANS 2
A. Project Readiness Activities 2
B. Overall Project Implementation Plan—Additional Financing (Tranche 3) 2
III. PROJECT MANAGEMENT ARRANGEMENTS 5
A. Project Implementation Organizations – Roles and Responsibilities 5
B. Key Persons Involved in Implementation 6
C. Project Organization Structure 7
IV. COSTS AND FINANCING 8
A. Detailed Cost Estimates by Expenditure Category and by Financier 8
B. Allocation and Withdrawal of Loan Proceeds 9
C. Detailed Cost Estimates by Year 10
D. Estimated Contract and Disbursement S-curve 10
E. Fund Flow Diagram 11
V. FINANCIAL MANAGEMENT 12
A. Financial Management Assessment 12
B. Disbursement 12
C. Accounting 13
D. Auditing 13
VI. PROCUREMENT AND CONSULTING SERVICES 14
A. Advance Contracting and Retroactive Financing 14
B. Procurement of Goods, Works and Consulting Services 14
C. Procurement Plan 14
1. Process Thresholds 14
D. Consultants’ Terms of Reference 17
VII. SAFEGUARDS 18
A. Environment 18
B. Land Acquisition and Resettlement 18
C. Indigenous People (IP) 19
D. Execution of Contracts for Works 19
VIII. GENDER AND SOCIAL DIMENSIONS 21
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 26
A. Project Design and Monitoring Framework 26
B. Monitoring 29
C. Evaluation 29
D. Reporting 29
E. Stakeholder Communication Strategy 31
X. ANTICORRUPTION POLICY 32
XI. ACCOUNTABILITY MECHANISM 33
XII. RECORD OF PAM CHANGES 34
Project Administration Manual Purpose and Process
1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM includes references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.
2. The Ministry of Regional Development and Infrastructure (MORDI) and the Roads Department (RD) are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the Government and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by MORDI and RD of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.
3. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Multitranche Financing Facility agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail.
4. After ADB Management approval of the Project Financing Request (PFR), 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 PAM1.
1 This PAM must be read in conjunction with the Facility Administration Memorandum for the Multitranche Financing
Facility for Georgia Road Corridor Investment Program, December 2010.
ABBREVIATIONS
ADB = Asian Development Bank AFS = audited financial statements EIA = environmental impact assessment EMP = environmental management plan LARP = land acquisition and resettlement plan PAI = project administration instructions PAM = project administration manual QCBS = quality- and cost based selection SPS = Safeguard Policy Statement
1
I. PROJECT DESCRIPTION
1. This tranche, financed from the multitranche finance facility (MFF) for Georgia Road Corridor Investment Program1, provides additional financing of $140 million for Loan 2560-GEO2 (the project). Its main components are: (i) constructing Kobuleti Bypass (a new 28 km two-lane bypass road skirting Kobuleti and expanding to four lanes, a 6 km section of an existing two-lane road between Kobuleti and Batumi, along the Black Sea coast toward the Turkish border)3; (ii) strengthening asset management capacity of the Roads Department; and (iii) improving road safety.
2. The additional financing will be used for expenditures related to civil works (road construction component described in paragraph 1), consulting services for construction supervision, and project administration by the executing agency. The expenditure on these items must not change the project’s scope or its impact, outcomes, and outputs.
3. Impact and Outcome
(i) Impact: Increase in subregional trade
(ii) Outcome: Improvement of the subregional road network
4. Outputs. Outputs of Project 1 will be (i) a new 2-lane bypass road of 28 km detouring Kobuleti and 6 km of expansion of existing 2-lane road to 4-lane between Kobuleti and Batumi, (ii) better asset management capacity of the Road Department (RD); and (iii) improved road safety.
1 ADB approved the MFF of $500 million The MFF was approved on 29 September 2009 to support the
government’s Road Investment Program based on the 2008 Joint Needs Assessment developed by the United Nations and other aid agencies including ADB.
2 Project 1 (Loan 2560-GEO) is financed from MFF’s first tranche of $118.8 million equivalent from the Special
Funds resources. It was approved on 6 October 2009. The loan became effective on 1 December 2009 and is scheduled for closing on 30 June 2014.
3 The exact lengths of the bypass and the expanded section will be fixed from the as-built drawings.
2
II. IMPLEMENTATION PLANS
A. Project Readiness Activities
Project Readiness Activities— Project (Tranche 1)
ADB Management approval 29 September 2009
Loan signing 29 October 2009
Loan effectiveness 1 December 2009
Loan closing 30 June 2014 to be extended to 31 December 2015
Project Readiness Activities—Additional Financing (Tranche 3)
ADB Management approval 22 December 2011
Loan signing
Loan effectiveness
Loan closing
B. Overall Project Implementation Plan—Additional Financing (Tranche 3)
Activities Responsible Parties
MOF MORDI/RD CON CNT ADB
1. Pre-Start Up
1.1 Board Approval *
1.2 Loan Signing *
1.3 Loan Effectiveness *
1.4 Establish Imprest Account *
1.5 Post general procurement notice *
2. Roads Department
2.2 Recruit office staff *
2.3 Procure office equipment and materials *
3. Preparation & Review of Detailed Design & Bid Documents
3.2 Review detailed design *
3.2 Preparation of Bid Document *
4. Land Acquisition and Resettlement, and Environment
4.1 LARP approval, updating and implementation *
4.2 LARP monitoring during and after implementation *
4.3 EIA/EMP implementation and monitoring * *
5. Construction Supervision
5. 1 Scope Revision and Contract Variation *
5.2 Supervision of Works *
6. Procurement and Implementation of Civil Works (Contract 2 - Km 12-32)
6.1 Bid Document Approval * *
6.2 Calling for Bids and Evaluation *
6.3 Contract signing and issuing notice to proceed *
6.4 Implementation * *
7. Project Management and Administration 4
7.1 Contract Administration *
7.2 Project Performance Monitoring *
7.3 Preparing and Submitting Withdrawal Applications *
7.4 Accounting and Auditing *
4 ADB Project Administration Instructions can be obtained from:
http://www.adb.org/Documents/Manuals/PAI/default.asp
3
7.5 Covenant Compliance *
7.6 Midterm Review *
7.7 Project Completion *
7.8 Loan Account Closing * *
ADB = Asian Development Bank, CNT = Contractors, CON = Consultants, EA = Executing Agency (RD), EIA = environmental impact assessment, EMP = environmental management plan, LARP = land acquisition resettlement plan, MOF= Ministry of Finance, MORDI = Ministry of Regional Development and Infrastructure, RD = Roads Department * with primary responsibility
4
Indicative Implementation Schedule
Contract 1
Contract 3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Approval of Advance Procurement
Tranche I (34 km) - Kobuleti Bypass
Detailed Design and Bid Documents
Review of Detailed Design by the Government
Construction Supervision
Recruitment of Supervision Consultants
Supervision and Preparation of Project 2
Prequalification for Civil Works (Apr-Sep 10)
Contract 1 - Km 0-12 & Km 28-34
Bid Documents and ADB's Approval (Jul-Aug 10)
Civil Works Procurement (Aug-Nov 10)
Civil Works Implementation
Contract 2 - Km 12-28
Bid Documents and ADB's Approval (Sep-Oct 10)
Civil Works Procurement (Oct 10-Jan 11)
Civil Works Implementation
Capacity Development for Road Network
Road Safety Improvement
Contract 3 - Km 34-48
Bid Documents and ADB's Approval (Jan-Feb 11)
Civil Works Procurement (Feb-May 11)
Civil Works Implementation
ADB = Asian Development Bank, km = kilometer.
Source: ADB estimates.
Activity2012 201420132009 2010 2011
defects liability period
defects liability period
defects liability period
pkg 1 pkg 2
defects liability period
pkg 3
5
III. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations – Roles and Responsibilities
5. The Ministry of Regional Development and Infrastructure (MORDI) will be the Executing Agency and Roads Department (RD) will be the Implementing Agency. The deputy chairman of RD will be in charge of contract administration and project delivery matters. He will be assisted by staff responsible for:
Procurement of civil works and consulting services with the assistance of detailed design consultant and external experts engaged as necessary.
Engineering. Verification and approval of specifications and change orders, payments, etc., requested by the construction supervision consultant (the Engineer), submitting progress reports to ADB, taking over the site at completion of works, preparing the Borrower’s project completion report.
Safeguards. preparing, updating, approving, and submitting land acquisition and resettlement plans to ADB, disclose required documents to the public, coordinate with the National Agency of Public Registry of the Ministry of Justice on matters related to registration of land ownership and transfers through purchase agreements from landowners to RD, and liaise with the local government at the rayon (district municipality) and village levels, and oversee independent compliance reviews, and submit documents to ADB. This unit will also be prepare, update, approve, and submit environmental documents to ADB, disclose required documents to the public, coordinate with Ministry of Environmental Protection and Natural Resources, ensure compliance with ADB requirements, and submit monitoring reports to ADB.
Financial Management, disbursement and project accounting. It will prepare withdrawal applications, maintain accounting records, prepare monthly and quarterly financial reports and yearly project accounts, and engage auditors, and send audit reports to ADB.
Administration and contract management after signing.
6
B. Key Persons Involved in Implementation
Executing Agency Ministry of Regional Development and Infrastructure
Officer's Name: Mr Mamuka Vatsadze Position: Deputy Minister Telephone: Email address: [email protected]
Office Address: 12 Kazbegi Avenue, 0160 Tbilisi, Georgia
Officer's Name: Mr Irakli Litanishvili Position: Deputy Chairman Telephone: +995 99 775 754 Email address: [email protected]
ADB
Office Address: 12 Kazbegi Avenue, 0160 Tbilisi, Georgia
Transport and Communications Division (CWTC), Central and West Asia Department (CWRD)
Staff Name: Hong Wang Position: Director Telephone: +63 2 632 6765 Email address: [email protected]
Mission Leader Staff Name: Prianka Seneviratne Position: Principal Transport Specialist Telephone: +63 2 632 5453 Email address: [email protected]
ADB Office Address 6 ADB Avenue, Mandaluyong City, Metro Manila, Philippines
7
C. Project Organization Structure
Detailed Design
Consultant
Detailed Design
Consultant
External Expert (Tunnel and
Bridge)
External Expert
Supervision Consultant
External Expert
ETCIC
FPU
Engineering Staff
Safeguard Staff
Financial Management
Staff
Administration Staff
RD
Road Safety Enhancement
Consultant
Capacity Development Consultant
MORDI
World Bank
JICA
MOF
ADB
Investment Program Implementation
Project Implementation
ETCIC = Eurasian Transport Corridor Investment Center; JICA = Japan International Cooperation Agency; MOF = Ministry of Finance; MORDI = Ministry of Regional Development and Infrastructure, RD = Roads Department.
8
IV. COSTS AND FINANCING
A. Detailed Cost Estimates by Expenditure Category and by Financier
6. The estimated tranche investment is $165 million. Detailed cost estimates by expenditure category and by financier of the project and additional financing are in the Table below.
7. The government has requested a loan of $140 million from ADB’s ordinary capital resources as additional financing for the project. The loan will have a 25-year term, including a grace period of five years, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year and such other terms and conditions set forth in the draft loan agreement. The government has provided ADB with (i) the reasons for its decision to borrow under ADB’s LIBOR-based lending facility based on these terms and conditions, and (ii) an undertaking that these choices were its own independent decision and not made in reliance on any communication or advice from ADB.
8. ADB’s additional financing loan will provide $112 million for civil works, $4 million for construction supervision, $0.5 million for project management, and $23.5 million for contingencies. The additional financing will be only utilized after the original financing is fully committed and/or utilized. The government will provide an additional $6 million for LARP implementation, $17 million for taxes and duties on works and services, and pay the interest and other charges during construction estimated at $2 million. The government will also finance any future shortfall in funds required to successfully complete the project as currently designed.
ADB ($m)Government
($m)Total ($m) ADB ($m)
% of Cost
Category
ADB
Government
($m)
% of Cost
Category
Government
Total ($m)
A. Base Cost
1. Land Acquision and Resettlement 0.0 10.1 10.1 16.1 0.0 0 6.0 100 6.0
2. Civil Works
(a) Contract 1 25.3 0.0 25.3 58.3 0.0 0 0.0 0 0.0
(b) Contract 3 60.8 0.0 60.8 140.0 112.0 100 0.0 0 112.0
3. Road Safety 1.0 0.0 1.0 1.0 0.0 0 0.0 0 0.0
4. Consulting Services
(a) Road Construction Supervision 4.3 0.0 4.3 8.3 4.0 100 0.0 0 4.0
(b) Detailed Design 3.5 0.0 3.5 3.5 0.0 0 0.0 0 0.0
5. Project Management Support
(a)Project Implementation Unit 1.0 0.0 1.0 1.5 0.5 100 0.0 0 0.5
(b) Environmental Management 0.6 0.0 0.6 0.6 0.0 0 0.0 0 0.0
(c) External Auditing 0.1 0.0 0.1 0.1 0.0 0 0.0 0 0.0
6. Capacity Development 2.0 0.0 2.0 2.0 0.0 0 0.0 0 0.0
7. Taxes and Duties 0.0 18.5 18.5 35.5 0.0 0 17.0 100 17.0
Subtotal (A) 98.6 28.6 127.2 266.9 116.5 84 23.0 16 139.5
B. Contingencies 20.2 1.5 21.6 45.1 23.5 100 0.0 0 23.5
C. Financing Charges 0.0 0.0 0.0 2.0 0.0 0 2.0 100 2.0
Total (A+B+C) 118.8 30.1 148.8 314.0 140.0 85 25.0 15 165.0
Project 1 Additional Financing
Revised
Total ($m)Item
9
B. Allocation and Withdrawal of Loan Proceeds
ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS CATEGORY ADB FINANCING
Number Item Amount Allocated
Category (SDR)
Percentage and Basis for Withdrawal from the Loan
Account
Tranche 1
Civil Works 55,002 82.3% of total expenditures
claimed*
2 Consulting Services (detailed design, construction supervision, capacity development, and road safety enhancement)
6,900 100 of total expenditures claimed*
3 Project Management Support 1,086 100 of total expenditures claimed
4 Contingency 12,904
Total 75,892
Tranche 3
Number Item Amount Allocated
Category ($)
Percentage and Basis for Withdrawal from the Loan
Account
1
Civil Works** 112,000,000 100 of total expenditures claimed*
2 Consulting Services (construction supervision)
4,000,000 100 of total expenditures claimed*
3 Project Management Support 500,000 100 of total expenditures claimed* 4 Contingency 23,500,000 Total 140,000,000
* Exclusive of taxes and duties imposed within the territory of the Borrower
** Subject to the disbursement condition referred to in paragraph 6 of Schedule 2 to theLoan Agreement
10
C. Detailed Cost Estimates by Year6
D. Estimated Contract and Disbursement S-curve7
6 These estimates were made at loan negotiations, and will be updated annually.
7 These estimates were made at loan negotiations, and will be updated annually.
110
112
114
116
118
120
0
20
40
60
80
100
120
140
160
Cum
ula
tive C
ontr
act
Aw
ard
s (
$m
)
Dis
bu
rse
me
nts
($
m)
Period
Disbursements
($m)
Cumulative
Expenditure
Cumulative
Contracts
2012 2013 2014 2015 A.
1 Civil Works 112 17 34 39 22
2 Consulting Services a. Construction Supervision 4.0 0.6 1.2 1.4 0.8
b. Project Management 0.5 0.1 0.2 0.2 0.1
Subtotal (A) 116.5 17.5 35.0 40.8 23.3
B. Land acquisition & resettlement b 6.0 5.7 0.1 0.1 0.1
C. 17 2.6 5.1 6.0 3.4
Total Base Cost 139.5 25.7 40.2 46.8 26.8
D. 23.5 3.5 7.1 8.2 4.7
E. Financing Charges c 2 0.1 0.2 0.2 0.1
165.0 29.3 47.4 55.2 31.6
% Total Project Cost 100 15 30 35 20 a b Financed by the Government c Disbursements are only financing charges totaling $0.5 Million
($ million)
Total Cost Item Investment Costs a
Taxes & duties b
Contingencies a
Total Project Cost (A+B+C+D+E)
Financed by ADB
11
E. Fund Flow Diagram
MOF and Imprest Account
Asian Development
Bank
MORDI
Roads Department
Consultants/ Contractors
lending
loan repayment
IPC : interim payment certificate MOF : Ministry of Finance MORDI : Ministry of Regional Development and Infrastructure
Individual Consultants and service providers
Budget Allocation
Withdrawal Applications
Direct Payments to Contractors and Consulting Firms
Withdrawal Applications
Treasury Checks
IPC
Imprest Account
replenishment
account administration
12
V. FINANCIAL MANAGEMENT
A. Financial Management Assessment
9. There will be no changes in the financial management procedures or responsibilities agreed between ADB and the government on the project.
B. Disbursement
10. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time),8 and detailed arrangements agreed upon between the Government and ADB.
11. RD may establish a separate imprest account for the treasury service of the Ministry of Finance at the National Bank of Georgia after the loan for additional financing takes effect, and will be liquidated and replenished according to the Loan Disbursement Handbook. It will be administered by RD’ Financial Management Unit. The ceiling of the imprest account will not at any time exceed the estimated ADB financed expenditures to be paid from the imprest account for the next 6 months or $500,000, whichever is lower. The request for initial advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet9 setting out the estimated expenditures for the first six (6) months of project implementation, and evidence that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the borrower will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against RD’s records.10
12. The imprest account will fund the following project management expenditure:
(i) Consultant salaries (ii) Financial and technical audits (iii) Stationery and office expenses (iv) Computer software and hardware for routine administration functions (v) Travel expenses
13. The statement of expenditures (SOE) procedures, as described in the Loan Disbursement Handbook, may be used when reimbursing expenditures and liquidating the imprest account for individual payment transactions of up to $100,000 equivalent. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.11 Individual payments in excess of the SOE ceiling should be accompanied by full supporting documents when submitting the withdrawal application to ADB.
8 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf
9 Available in Appendix 29 of the Loan Disbursement Handbook.
10 Follow the format provided in Appendix 30 of the Loan Disbursement Handbook.
11 Checklist for SOE procedures and formats are available at: http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls
13
14. RD’s Financial Management Unit will be responsible for preparing (i) proof of satisfying conditions for disbursement (i.e., completion of LARP implementation and hand over of Contract 2 site to the contractor); (ii) withdrawal applications for direct payments to the contractors and the firms performing construction supervision and financial audits; (iii) treasury checks for payments to individual consultants and other service providers; (iv) documentation for liquidation and replenishment of the imprest account; (v) SOEs; (vi) disbursement projections, and (vii) requesting budgetary allocations from MOF for the items in the project budget.
15. For direct payments, the contractors and consultants will submit the IPC to the RD who will process it and send request of payment to ADB.
16. Before submitting the first withdrawal application, the Government must submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. The Government is to consolidate claims to meet this limit for reimbursement and imprest account claims.
17. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),12 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. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5 of the SPS) to subprojects financed by ADB.
C. Accounting
18. MORDI and RD will maintain separate project accounts and records by funding source for all expenditures incurred for the additional financing loan. Project accounts will follow international accounting principles and practices.
D. Auditing
19. MORDI will engage an auditor acceptable to ADB for auditing the detailed consolidated project accounts in accordance with International Standards on Auditing. The audited accounts will be submitted in the English language to ADB within 6 months of the end of the fiscal year by the executing agency. The annual audit report will include a separate audit opinion on the use of the imprest account and SOE. MORDI has been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.
12
Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
14
VI. PROCUREMENT AND CONSULTING SERVICES
A. Advance Contracting
20. All advance contracting will be limited to civil works in Contract 3 and consulting services for construction supervision and project management. They will be undertaken in conformity with ADB’s Procurement Guidelines (2010, as amended from time to time) (ADB’s Procurement Guidelines)13 and ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time) (ADB’s Guidelines on the Use of Consultants).14 The issuance of invitations to bid under advance contracting will be subject to ADB approval. The borrower, the MORDI and the RD have been advised that approval of advance contracting does not commit ADB to finance the Project.
21. The RD will initiate the following steps in advance – (i) prequalification of contractors (if necessary), tendering, and bid evaluation for civil works packages; (ii) evaluation of bids; and (iii) evaluation and selection of consultants.
22. No retroactive financing from additional financing is requested by the government.
B. Procurement of Goods, Works and Consulting Services 15
23. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines.
24. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract is in Section C.
C. Procurement Plan
Process Thresholds, Review, and 18-Month Procurement Plan
1. Process Thresholds
25. 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
International Competitive Bidding for Works Above $1,000,000
National Competitive Bidding for Works $1,000,000 and below
International Competitive Bidding for Goods Above $500,000
National Competitive Bidding for Goods $500,000 and below
Shopping for Works Below $100,000
Shopping for Goods Below $100,000
13
Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf 14
Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf 15
Information on recruitment and contract management can be found in Consulting Services Operations Manual at http://beta.adb.org/documents/consulting-services-operations-manual
15
2. ADB Prior or Post Review
26. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the Project.
Procurement of Goods and Works
Procurement Method Prior or Post Comments
International Competitive Bidding for Works Prior
International Competitive Bidding for Goods Prior
National Competitive Bidding for Goods Prior
Shopping for Works Prior
Shopping for Goods Prior
Recruitment of Consulting Firm
Quality-Based Selection Prior
Quality- and Cost-Based Selection Prior
Recruitment of Individual Consultant
Individual Consultants Prior
3. Goods and Works Contracts Estimated to Cost More Than $1 Million
27. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
General Description
Procurement Method
Prequalification of Bidders (Yes/No)
Advertisement Date
(quarter/year) Comments
Civil Works ICB No Q4/2011 Procurement of Contract 3 will start in December 2011.
4. Consulting Services Contracts Estimated to Cost More Than $100,000
28. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
General Description
Recruitment Method
Advertisement Date
(quarter/year)
International or National
Assignment Comments
Construction Supervision of Projects 1 and 2 civil worksa
QCBS with FTP Not applicable International Dohwa Engineering was engaged in February 2011 for an estimated contract price of $8.45m.
Capacity Development for Road Networka
(Project Management)
QCBS with FTP III/2012 International firm
Road Safety Improvementa
QCBS with FTP III/2012 International firm
16
5. Consulting Services Contracts Less than $100,000
General Description
Number of Contracts
Procurement/ Recruitment Method Comments
Project Managementb
Up to 5 Individual Up to five Individual national and/or international consultant contracts will be financed from proceeds of additional financing.
6. Indicative List of Packages Required Under the Project
29. The following table provides an indicative list of all procurement (goods, works, and consulting services) over the life of the project. The domestic preference does not apply.
General Description
Estimated Number of Contracts
Procurement Method
Domestic Preference Applicable Comments
Works
Contract 1 (15.4 km from km 0-12.4 and km 31-34)
a
1 ICB One-envelope single stage with postqualification
No Contract awarded in November 2010 for GEL 115.5m
Contract 3 (approximately from km 12.4 to Km 31)
b
1 ICB One-envelope single stage with postqualification
No
Consulting Services
Construction Supervision of Projects 1 and 2 civil works
a
1 QCBS with FTP No Dowha Engineering was engaged in February 2011 for an estimated contract price of $8.45m.
Detailed Design for Tranche 1 and 2 projects
a
1 QBS with FTP No Contract awarded in February 2010
Capacity Development for Road Network
a(Project
Management)
1 QCBS with FTP No Quality-cost ratio 80:20c
Road Safety Improvement
a
1 QCBS with STP No Quality-cost ratio 80:20c
Project Management
b
Up to 5 Individual No Up to five Individual national and/or international consultant contracts will be financed from proceeds of additional financing.
ICB = international competitive bidding, QCBS = quality- and cost-based selection, FTP = full technical proposal a
Financed from Tranche 1 and approved by ADB’s Board. b
Financed from additional financing. c
This ratio may be revised after the detailed terms of reference are prepared.
17
D. Consultants’ Terms of Reference
30. Roads Department will prepare the terms of reference for the individual consultants that will be required to assist them in various matters. These may include, but not limited to, project management, safeguards, technical verification, legal, and financial control. The terms will be sent to ADB together with the estimated budget for the services before commencing recruitment activities.
18
VII. SAFEGUARDS
A. Environment
31. The EARF has been updated to reflect the requirements of the ADB Safeguard Policy Statement (2009) [SPS] and posted at the ADB website 20 December 2011. The government has accordingly updated the EIA and EMP based on the detailed design of Contract 3 section (km 12.4 to 31). They were posted on the ADB’s website 20 December 2011. The main environmental impacts of the project will be temporary increases in soil erosion, sedimentation, air and noise pollution and removal vegetation and soil during construction. During operation the impacts will be increased noise and potential for traffic accidents issues, and risks associated with the transport of hazardous materials. Risks will be greatest along several complex and erosion prone geological terrain sections, and at several river crossings and tunnel sites. These impacts are however typical of similar road projects and can be effectively minimized, mitigated of offset, through effective implementation of the EMP. RD will finalize the EMP and ADB will ensure its compliance with SPS requirements prior to contract awarding and the commencement of civil works.
32. RD will ensure (a) that construction, operation, and maintenance of the road are carried out in accordance with, and Georgia’s environmental laws and regulations; and (b) potential adverse environmental impacts arising from the Project are minimized by implementing all mitigation and monitoring measures as presented in the EIA and the EMP.
33. RD will (a) include applicable environmental measures identified in the EIA and the EMP in the civil works and consulting services contracts; (b) through the Engineer, supervise EMP implementation by the contractor; (c) prepare monthly environmental monitoring reports (EMRs) and submit to ADB together with the progress reports. The EMRs must include a review of implementation progress of the EIA and the EMP, problems encountered and remedial measures taken.
B. Land Acquisition and Resettlement
34. The LARF has been revised to include requirements under the SPS, and posted at ADB website in December 2011. The original LARP was split into three sections and the sectional LARPs for the Contract 1 section (km 0 to 12.4 and km 31 to 33) was posted in May 2011. These sectional LARPs are now fully implemented. Compliance reports have been accepted by ADB and disclosed. The draft sectional LARP for Contract 3 section (km 12.4 to km 31) was updated and posted in the ADB website in December 2011. This sectional LARP when finalized for this section and information pamphlet for the affected person must be translated and disclosed by RD. LARP Implementation in Contract 3 will begin in January 2012.
35. ADB has informed the government and stipulated in the financing agreement that civil works under Contract 3 must not commence until the updated LARP is fully implemented, and ADB has accepted the compliance report prepared by an external monitor engaged by RD. This requirement must be stipulated in the civil works bidding and contract documents.
36. RD will ensure that the updated LARP covering Contract 3, any future updates theirof, and their implementation are in accordance with the applicable Georgian laws and regulations, and ADB’s Safeguard Policy Statement (2009), and:
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(i) the updated and final LARP are disclosed to displaced persons; (ii) the final LARP is submitted to ADB for review and clearance prior to award of
Contract 3; (iii) all land and rights of way required for the project are acquired and made
available in a timely manner; (iv) all compensation and resettlement assistance are provided to displaced persons
prior to their displacement and dispossession and the compensation program of the LARP is fully implemented prior to issuing any notice to proceed;
(v) efficient grievance redress mechanisms is in place to assist displaced persons resolve queries and complaints if any, in a timely manner;
(vi) adequate staff and resources are made available for supervising and monitoring the implementation of the LARP and ADB received reports at the completion of the LARP implementation process; and
(vii) if during implementation of the LARP, any changes to the location, land alignment of roads, or additional environmental and/or resettlement impacts are identified, the LARP is updated and prior approval by ADB and the relevant government agencies is obtained before further implementation of the LARP.
37. RD, with the assistance of the Engineer, will implement the LARP. RD will engage an external consultant to confirm that (i) compensation is based on fair price (replacement cost) of land and/or other assets, and is based on meaningful consultation with displaced persons; and (ii) provisions in the LARP have been observed during its implementation. The compliance report prepared by consultant will be used by ADB to issue no objection for starting civil works. The impacts during construction, including temporary acquisitions, damage, and relocation will be arranged by the Engineer and the contractor after consulting with RD. Each of these actions, including details of the affected persons and financial arrangements will be reported to ADB by RD in their monthly progress reports.
C. Indigenous People (IP)
38. The project area is inhabited by an overwhelming Georgian majority. No indigenous people are expected to suffer under the Project. The inhabitants have full and equal access to institutions and economic opportunities as the rest of the population. Because of this, the project is classified as IP Category C.
D. Execution of Contracts for Works
39. RD will ensure that, subsequent to award of the Works contract, no notice to proceed is issued to contractor of this project until the applicable provisions of the LARP (including, in particular, the provision on the timely payment of compensations to affected persons), the updated EIA report and EMP have been complied with. RD will ensure that any unanticipated impact during civil works will be addressed by the contractor as per ADB’s Safeguard Policy Statement (2009).
40. It is a condition to first disbursement under the loan agreement for civil works that ADB has received certification from the government that: (i) adequate funds shall have been allocated for land acquisition and resettlement activities; and (ii) unencumbered land and rights of way required for Project implementation have been obtained. It is a condition to the award of the Contract 3 civil works package that updated final versions of the EMP and RP are cleared by ADB and that the final EIA is approved by the government. .
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41. The government will include within bidding documents and contracts requirements for the preparation of Construction Environmental Action Plans detailing the implementation of EMP requirements with site specific information on management and monitoring measures.
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VIII. GENDER AND SOCIAL DIMENSIONS
42. The updated summary poverty reduction and social strategy provides details of the gender and social dimensions.
Country: Georgia Project Title: Road Corridor Investment Program (Project 1 updated for Tranche 3)
Lending/Financing Modality:
Multitranche Financing Facility Department/ Division:
Central and West Asia Department / Transport and Communications Division
I. POVERTY ANALYSIS AND STRATEGY
A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy
The project, under the Roads Corridors Development Investment Program, can be linked indirectly to the overall objective of the Government’s Development Agenda as reflected in the Basic Data and Directions 2008–2011 document and ADB’s interim operational strategy 2008–2009. Poverty reduction is one of the priorities of the Government. It is aiming to reduce by 2015, the overall poverty incidence to 15% from 23.3% in 2006 and extreme poverty from 11% to 4%. Achieving these targets will be helped by infrastructure development, which removes economic growth bottlenecks. Transport infrastructure development in particular will increase market access and help better realize Georgia’s transit economy potential. ADB’s priorities in its interim operational strategy are based on (i) alignment with the Government’s development agenda; (ii) selectivity in directing limited resources at a few priority areas; and (iii) complementarities with other development partners. The strategy will promote sustainable economic growth, with governance, regional cooperation, and environmental protection as pervasive themes, by (i) improving municipal infrastructure services within the evolving decentralization process, (ii) reducing road transportation constraints on economic activity, and (iii) upgrading and developing energy infrastructure. ADB’s operational engagement in this area will involve financing improvements in the highway network, resulting in lower transport costs, better road safety, and reduced traffic congestion and vehicle pollution. These are high-return, in-demand operations, and the Government has requested ADB assistance in this area to help address some of the remaining investment gaps. Georgia’s road network consists of 1,495 kilometers (km) of international, 5,446 km of state, and 13,386 km of local roads. The country has five main roads and highways, including the east–west highway connecting the ports of Poti and Batumi to the Azerbaijan border. The Government has been encouraging private sector participation in the construction and maintenance of highways. Given the country’s location, transport sector development is critical in reducing the logistics costs of economic activity and realizing Georgia’s full potential as a transit economy. The difficult terrain in some sections and congestion slow traffic, increase vehicle operating costs, and reduce road safety. Road maintenance costs are also high because of the terrain and weather conditions. About 10% of the main roads, 30% of the secondary roads, and 50% of the local roads are in poor condition and need rehabilitation. The Government has prioritized the improvement of the road network. The link between access to infrastructure services and poverty incidence has been well established in cross-country studies. For Georgia, rural–urban differences in access to infrastructure services go some way toward explaining the pattern of poverty incidence. Because of the generally poor condition of secondary and local roads, Georgia’s rural population, including ethnic minorities living in southern Georgia, face problems of isolation, with inadequate access to markets and to social services. In rehabilitating and upgrading secondary and local roads, it will be important to build in participatory mechanisms involving local communities in the design and maintenance of the roads. Therefore, the project will have indirect linkage to the overall development goal.
B. Poverty Analysis Targeting Classification: General Intervention
1. Key issues. Georgia ranks 75th out of 187 countries on the human development index of the United
Nations Development Program. It ranks higher than Azerbaijan (91st) and Armenia (86th). Although growth will need to be broader based to achieve the income poverty reduction target, the policy and institutional environment for achieving the Millennium Development Goals has improved in recent years with higher and more efficient spending in the social sectors. The people living under the poverty line is 9.7% (2010) and depth of poverty 6.6% and poverty level was 21% (2009) The direct benefits of the investment program for the poor will be relatively small, but it will provide some direct employment opportunities during construction. The contribution of the investment program will be more indirect. The provision of transport services, including the construction and maintenance of transport infrastructure, will generate demand for labor (often unskilled labor) and provide income-earning opportunities for the poor. If a transport project generates jobs for the poor who are otherwise unemployed or underemployed, it contributes indirectly to poverty reduction. The construction aspect of transport sector development is often seen to
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be just as important as the service aspect in promoting economic growth. The process of poverty reduction is rooted in a broad range of socioeconomic activities to which transport services provide intermediate inputs. The proposed project will have both short-term and long-term positive impact. The short-term positive impact will include access to markets for agricultural produce, availability of temporary unskilled jobs for villagers, and opportunity to provide food and restaurant services for construction workers. The long-term positive impact, on the other hand, will include access to long-distance transport services across the border, access to long-distance markets (buying and selling through regional trade), easier access to health facilities and medical treatment, increased access to agricultural extension services, increased access to education, increased opportunity for the development of tourism, and diversification of income sources. 2. Design features. No direct impact on poverty is envisaged to occur as a result of the implementation of this
project. Nonetheless, the project will have an indirect impact on Georgia as a whole.
II. SOCIAL ANALYSIS AND STRATEGY
A. Findings of Social Analysis Key issues. The investment program will have a positive socioeconomic impact on Georgia. A sample
socioeconomic survey of 200 households in 20 villages in the project area was carried out. Of the households that were surveyed, 70% are from villages and 30% from urban areas. Among the heads of households, about 83% are males and 17% are females. Most of the sampled households (about 98%) are of Georgian ethnicity. The sex ratio in the project area favors the females (1,004 females to 1,000 males). The average family has 5.04 members. Literacy in the project area is almost 100%. However, the majority of the residents (about 59%) have not gone beyond a secondary education and only about 16% have a university education (same for both genders). Agriculture is the primary economic activity among 81% of the households, followed by government services (33.17%) and business and trading (8.91%). Out of 39 households with secondary economic activities, nearly 9% practice agriculture and 3.47% are employed with the government or have their own business. Among household members 15 years old and above, 70% are unemployed (65% males and 75% females). About 6.43% of the households are landless. Almost all the land is cultivable but unirrigated. On the other hand, a household owns 0.022 hectare of residential land on average. The total annual average income per family is about GEL6000 and the median annual income is GEL4660. Television sets (97.5%), LPG gas stoves (78.2%), and refrigerators are common household assets among the sampled households. Large animals like cows, bulls, buffaloes are owned by 57% of the households and poultry is owned by nearly 23% of the households. About 40% of the households surveyed reported having loans, and most of these were bank loans. Most of the structures and buildings are double-storied, and 88% are cemented structures. Among the households, 98.5% are connected to central power supply. The average number of rooms available in the sampled households is 6.11. Only 2.5% of households reported having connection to the natural gas pipeline. Piped water supply is the common source of water for half of the households. About 48.51% have flush toilets and the rest have latrines. Wood is used as fuel for heating in 94% of the households. About 89% of the sampled households have access to health centers. The average distance of the health centers from their houses is 3.1 km; for 8.23%, the health center is within 1 km from their houses. Ninety-five percent have access to schools for their children. About 94.55% of households have houses with immediate access to roads. For 86% of the households, the immediate approach road is the village road, and for 10% it is the highway. The survey and the analysis indicated that almost 52% of the households in the project area are living below the poverty line.
B. Consultation and Participation
1. Provide a summary of the consultation and participation (C&P) process during project preparation. Consultations were carried out with all the stakeholders during program preparation. As an integral part of the safeguards planning, affected communities and affected persons were directly and fully involved in the project preparation and during the design. All stakeholders were informed about the project, and the stream of information will continue during the implementation of the project. Consultations were arranged at various stages of social and resettlement project preparation—alternative alignment feasibility study, cadastral survey of affected lands, land census survey, socioeconomic survey, and targeted consultation meetings with affected people and local stakeholder organizations and individuals. Consultations were also held at various levels of government offices such as the Department of Roads (including its resettlement division), the National Agency for Public Registry under the Ministry of Justice, local governments at the rayon (district municipality) level, gamgebeli (governors), property recognition committees in the rayon, and sacrebulo (representative local autonomous bodies). Community consultations were held through focus group discussions at various locations, especially at 20 villages in April 2009. A total of 210 men and women participated. The consultations will continue throughout the project cycle.
2. What level of C&P is envisaged during the project implementation and monitoring?
Information sharing Consultation Collaborative decision making Empowerment
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3. Was a C&P plan prepared for project implementation? Yes No Local communities and affected persons were consulted throughout the preparation process to minimize impact, ensure social acceptance, and increase equitability. The process will continue during the implementation of the project. Views and concerns of all stakeholders will be taken into consideration and addressed whenever feasible.
C. Gender and Development Gender Mainstreaming Category: Some Gender Benefits
1. Key issues. The investment program will pay particular attention to women to ensure that they receive
rightful compensation for their activities and that women who are de facto household heads are clearly listed as beneficiaries of compensation and rehabilitation proceedings under the loan. Women will also participate in the consultation process to determine and negotiate compensation entitlements and implement the land acquisition and resettlement plan (LARP). Special attention will be given to the impact of resettlement on women and other vulnerable groups during the monitoring and evaluation of the LARP. The investment program will have a positive impact on gender, because the civil works contracts will include provisions to encourage the employment of women during implementation, and women will be urged to participate in the monitoring of program impact. No particular issue is expected to arise from the implementation of the project. Nonetheless, additional compensation will be given to households headed by women, which are considered to be more vulnerable. 2. Key actions. Measures included in the design to promote gender equality and women’s empowerment—
access to and use of relevant services, resources, assets, or opportunities and participation in decision-making process: Gender action plan Other actions or measures No action or measure
III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS
Issue Significant/Limited/
No Impact Strategy to Address Issue Plan or Other Measures
Included in Design
Involuntary Resettlement
Significant Impact
The project will entail substantial land acquisition and resettlement. A detailed impact assessment, including a census survey was conducted. The assessment shows that Contract 3 will affect an additional 179 land parcels. The total land area to be acquired is about 283,000 sq m, of which 268,000 sq m is agricultural land and 15,000 sq m is residential and commercial land. The total number of affected households or families is 940.
A full land acquisition and resettlement plan (LARP) has been prepared for the project 1 on the basis of the engineering design. The LARP is based on ADB’s Involuntary Resettlement Policy (1995) and Georgian laws and regulations. All the losses have been assessed and provisions have been made for compensation and assistance to affected persons including nontitle holders. Additional assistance has been provided to vulnerable households. A land acquisition and resettlement framework has also been prepared for the entire multitranche financing facility, and will be followed and implemented when LARPs for future tranches are prepared.
Resettlement plan Resettlement framework
Indigenous Peoples
No Impact
The investment program is not expected to affect indigenous peoples. An assessment of the impact on indigenous peoples was made according to ADB’s Policy on Indigenous Peoples (1998). The investment program will primarily affect Georgian people, who compose almost 93% of the population. Other ethnic
Not required No action
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groups are also present in the program area, but in insignificant numbers. These groups are mostly Armenian, Azeri, and Russian. These groups have been fully integrated into institutional, cultural, and economic processes in the country, and do not display sufficient features to be classified as indigenous peoples according to the ADB definition.
Labor
Employment opportunities Labor retrenchment Core labor
standards
No Impact
Job opportunities will open for skilled and unskilled labor during construction.
The subproject work will create both direct and indirect employment opportunities for the local people. Provisions in the civil works contract will take care of issues related to safety and protection of laborers’ rights, including employment and equal pay for women and non-employment of children in the project. Currently the project has generated direct employment for 220 Georgian and 160 Chinese workers. In addition, indirect employment through sub-contractors generated for 100 local people.
No action
Affordability No impact No tolls will be collected on the subproject roads. There will be savings in vehicle operating cost as a result, and these will lower transport costs.
No action
Other Risks and/or Vulnerabilities
HIV/AIDS Human trafficking Others (conflict, political instability, etc.)
Limited The project is likely to bring in risks related to HIV transmission as a result of the increased mobility of people and the influx of labor during construction. Mitigation measures in the form of awareness campaigns are currently underway to counter the spread of socially transmitted diseases in the project area. In September 2011, awareness raising training was conducted related to HIV/AIDS for Chinese workers as well as Georgian workers. Information leaflets were prepared and disseminated during the training to counter the spread of socially transmitted diseases.
Other action
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IV. MONITORING AND EVALUATION
Are social indicators included in the design and monitoring framework to facilitate monitoring of gender and social development activities and/or social impacts during project implementation? Yes No No. Social indicators have been included in the project performance monitoring system.
Source: Asian Development Bank.
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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION
A. Project Design and Monitoring Framework
Design Summary (Current Project)
Design Summary (Overall Project)
Performance Targets and Indicators with Baselines
(Current Project)
Performance Targets and Indicators with Baselines
(Overall Project)
Data Sources and Reporting
Mechanisms (Overall Project)
Assumptions and Risks (Overall Project)
Impact
Increase in subregional trade and tourism revenues
Increase in subregional trade and tourism revenues
4% increase in subregional trade through the Turkish border 5 years after project completion
4% increase in subregional trade through the Turkish border 5 years after project completion from $1 million in 2010 to $1.2 million in 2018
Regional and national data from the Statistical Yearbook of Georgia
Assumptions
Macroeconomic stability Implementation of the transport infrastructure investment program as planned
10% yearly increase in registered visitors to Adjara region for 5 years after completion, from 285,000 in 2008
10% yearly increase in registered visitors to Adjara region for 5 years after completion, from 285,000 in 2008 to 2 million in 2018
Outcome
Improvement of the subregional road network
Improvement of the subregional road network
Increase in traffic volume on the Kobuleti bypass to 3,600 vehicles by 2014, 5,700 vehicles by 2024,and 8,500 vehicles by 2034
Decrease in travel time for the Choloki–Sarpi trip to less than 0.6 hour after project completion from 1.5 hours in 2011
Roads Department surveys Accident statistics from the Georgian police
Assumptions
Government’s commitment to implement the road map and the Subregional Road Corridors Development Investment Program
Decrease in travel time for the Choloki–Sarpi trip to less than 0.6 hour after project completion
Adequate financing for the implementation of the Investment Program
Decrease in road accident rate from 1.3 per million vehicle-km on the existing road to 0.68 on the Kobuleti bypass road by 2014
Risks
Rapid deterioration of the road network caused by insufficient funding for maintenance and weak axle-load control
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Design Summary (Current Project)
Design Summary (Overall Project)
Performance Targets and Indicators with Baselines
(Current Project)
Performance Targets and Indicators with Baselines
(Overall Project)
Data Sources and Reporting
Mechanisms (Overall Project)
Assumptions and Risks (Overall Project)
378,000 people will benefit from the project
Limited coordination among government agencies during the implementation of the Subregional Road Corridors Development Investment Program
Outputs
1. A 48 km two-lane bypass road detouring Kobuleti
1. A 32 km two-
lane bypass road detouring Kobuleti and 2 km of 2- lane existing road widened to 4-lanes (total 34 km)
(updated and clarified)
Maintenance of the IRI value for the bypass roads at no higher than 3.0 within 5 years after project completion Increase in road capacity to 12,000 vehicles per day after project completion
The road after construction meets standards and specifications in the contract document
Roads Department surveys and monthly reports Supervision consultant’s handover certificate
Assumptions Support
from local governments and communities Disputes among contractors, supervision consultants, and the Roads Department avoided or promptly resolved
Risks
Cost overruns caused by unexpected increases in prices of fuel and key raw materials
2. Strengthening of asset management capacity
2. Strengthening of asset management capacity
60 person-months of international training for Roads Department staff Implementation of Performance maintenance contracts
Roads Department awards at least one performance-based contract for maintaining local or national roads by December 2012
Roads Department surveys and monthly reports
3. Improvement of road safety
3. Improvement of road safety
Development of road accident monitoring, reporting, and information system by 2013
Development of road accident monitoring, reporting, and information system by December 2013
Roads Department surveys and monthly reports
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Design Summary (Current Project)
Design Summary (Overall Project)
Performance Targets and Indicators with Baselines
(Current Project)
Performance Targets and Indicators with Baselines
(Overall Project)
Data Sources and Reporting
Mechanisms (Overall Project)
Assumptions and Risks (Overall Project)
Provision of road safety public campaign and training by project completion in 2011
Activities with Milestones (Overall Project) Inputs (Additional Financing)
1. Implementation of civil works
2.
3. Implementation of land acquisition and resettlement plan
4. Implementation of road safety awareness campaign
5. Detailed design and supervision consultancy
Civil works Contract 1 awarded by June 2010 and construction started on 1 July 2010
16 and completed by
June 2013 Civil works Contract 2 awarded by December 2010 and construction work started on 1 January 2011 and completed by December 2013
17
Land acquisition and resettlement plan for the first contract package completed by May 2010
18 and second
contract package by November 2012 Action plan prepared by March 2013 and implemented by December 2013
ADB: $140 Item Amount ($ million)
Civil Works 112 Supervision 4 Project Management 0.5 Contingencies 23.5 Government: $25 Item Amount ($ million)
LARP 6 Taxes 17 Financing Charges 2
6. Borrower’s Project completion report
Design consultants recruited by September 2009 and detailed design completed by 31 December 2009 for the first contract package, and by May 2010 for the second contract package
19 Supervision consultants recruited by
June 201020
and their work completed by December 2013 Submitted to ADB by 1 January 2016
16
Actual: 24 April 2011. 17
Revised start July 2012 and completion July 2015 18
Actual: July 2011. 19
Actual: November 2011. 20
Actual: February 2011.
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B. Monitoring
43. Project performance monitoring. RD will require the Engineer to (i) collect additional data from relevant agencies, including local governments and statistics bureaus, (ii) to measure the performance indicators at inception and completion of Project 1; and (iii) report key findings quarterly to ADB.
44. Compliance monitoring. RD will provide an annual report on the project’s compliance with legal, financial, economic, environmental and other covenants.
45. Safeguards monitoring. RD, through the Engineer, will monitor the implementation of the environment and resettlement action plans. The quarterly report will include the status of these plans. RD will engage individual consultants for periodic inspection and reporting on safeguard matters
46. Gender and social dimensions monitoring. RD, through the supervision consultant, will monitor the impact on gender and social dimensions through regular quarterly reports.
47. Information leaflets prepared and disseminated during previous training sessions to workers and residents in the project area to counter the spread of socially transmitted diseases will be continued and monitored by the RD and the Engineer.
C. Evaluation
48. Within 6 months of physical completion of the Project, RD will submit a project completion report to ADB.21
D. Reporting
49. RD will provide ADB (i) monthly progress reports (by the 10th of the following month) in the format suggested by ADB22 and summarized for ease in Box 1 below; (ii) consolidated annual reports including (a) physical and financial progress, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the executing agency AFSs, together with the associated auditor's report, should be adequately reviewed.
Box 1. Monthly Progress report Format
Purpose To inform the Borrower and Asian Development Bank of the:
actual versus programmed (planned) rate of completion and rate of disbursement up to the reporting time of main activities in each component (for example): o detailed design o land acquisition and resettlement o recruitment of consultants o procurement of works o physical works
21
Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector-Landscape.rar
22 Please refer to the Project Administration Instructions--http://adb.org/Documents/Manuals/PAI/pai-5.01-dec01.pdf
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o consultants' services o project implementation unit staff services o safeguards monitoring (meetings with stakeholders, environmental tests, etc.) o training and education (technical, health, social, etc.) o institutional re-organizations o legislative and procedural reform
reasons or justification for the deviations from the program (plan)
summary of actions proposed in previous report and their results
continuing or new deviations23
, if any, from the scope, schedule, budget, covenants, etc.
consequences of the deviations (financial, environmental, social, technical, etc.)
planned (target) rate of completion of the main activities, and any new activities planned for the next reporting period
major events such as public complaints, instructions from government agencies (e.g., environmental authority), traffic accidents, workers’ health and welfare issues, etc.
steps taken to correct the deviations, responsibility for the action and the expected action date Required Information and Data
Key project data (<= half a page)
Gantt charts of planned and actual completion of all major activities (details of each major activity in separate charts if necessary)
Cumulative graphs (S-curves) of planned and actual expenditure
Matrix of the rate of completion (meeting) the main covenants
Complete information, if ADB approval is requested, for change orders or reallocation of funds: o Description of change in scope, design, quantities, prices o Reason for the change— (e.g., technical, economical, environmental, market conditions, etc.) o FIDIC condition(s) that requires or allows the change (i.e., clause(s)) o Agreement on the change between the Engineer and Contractor o Employer's acceptance of the change o Cost or saving due to the change (material, labor, time) o Implications on construction and supervision schedule, economics, covenants o New financing plan o Expected date of ADB's approval of change
RD Management cover letter Contract Variations Before agreeing to any modification or waiver of the terms and conditions of a Goods, Services
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and/or Works contract, including change orders, time extensions, payment schedules, Roads Department shall seek ADB’s no objection through a formal letter signed by a key person of the borrower mentioned in page 6 of the PAM or an authorized representative. 12. This applies in particular to (a) any extension of the stipulated time for completion of a contract for Works; (b) any modification or waiver of the conditions of a contract for Works, including any change order that falls under (c) or (d) below;
23
The Borrower or Recipient must inform ADB if it wishes to make changes that would vary one or more of the following:
The alignment (e.g., a spur road to a new location or a deviation through a town/city not previously included in the scope);
The physical site or location of the infrastructure that involves an entirely new set of stakeholders and distribution of benefits and impacts;
The road classification (e.g., type of paving and/or vehicle capacity such as changing from a two-lane bitumen road to a four-lane concrete road)
The project's outputs, outcomes, impacts, total cost, financing plan, completion time, etc; and/or
The covenants. 24Please refer to instructions in: http://www.adb.org/Documents/Manuals/PAI/PAI-2.06-18Oct2010.pdf
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(c) any change order under a contract for Works that will in aggregate increase the original contract price (for the avoidance of doubt, such aggregate shall take into account any previous or simultaneous change order or orders under such contract); or (d) any change order under a contract for Works that will affect more than 15% of the original contract price (either through increases or decreases), even if the net effect of such change order will not in aggregate increase the original contract price. For the avoidance of doubt, such aggregate shall take into account any previous or simultaneous change order or orders under such contract. Reporting to ADB and MOF (starting from the date of signing the financing agreement)
Monthly reports- before the 15th of the following month (<=6 pages of main text- app. if needed)
Quarterly reports (if any) - before the 15th of January, April, July, October (<=12 pages of main
report)
E. Stakeholder Communication Strategy
50. Extensive consultations were conducted at various stages of social and resettlement project preparation—alternative alignment feasibility study, cadastral survey of affected lands, land census survey, socioeconomic survey, and targeted consultation meetings with affected people and local stakeholder organizations and individuals. Consultations were also held at various office levels such as RD, National Agency for Public Registry under the Ministry of Justice, Local Government at rayon level, gamgebeli (governors), the property recognition committee in the rayon and sacrebulo. Community consultations were held through focus group discussions at various locations. The consultations will continue throughout the project cycle. A resettlement information leaflet containing information on compensation, entitlement, and resettlement management adopted for the project will be made available in the local language(s) and distributed to affected persons. Each affected person will be provided information regarding specific entitlements. Information sharing on LARP entitlement will be shared at the village level through consultation and through formal public consultation during the public hearing under the environmental impact assessment. This summary LARP will be translated into the local language (Georgian) and disclosed to affected persons at the local level. A copy of the LARP will be available at RD. The same will be available for the affected persons as and when asked for.
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X. ANTICORRUPTION POLICY
51. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.25 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/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.26
52. To support these efforts, relevant provisions are included in the loan agreement/regulations and the bidding documents for the Project.
25
Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 26
ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp
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XI. ACCOUNTABILITY MECHANISM
53. 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 a good faith effort 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.27
27
For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.
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XII. RECORD OF PAM CHANGES
Date Name(s) of Persons Involved in Changes
20 October 2011 (Draft PAM) Road Department: I. Litanashvili and M. Katsitadze ADB: N. Singru and P. Seneviratne
20 December 2011 (revised after loan negotiations)
Road Department: I. Litanashvili, G. Tsagareli, and M. Katsitadze ADB: P. Seneviratne
