41
1 Project Number: 41629-01 Loan Number: {LXXXX} August 2010 India: Bihar State Highways II Project Project Administration Manual
1
Project Number: 41629-01 Loan Number: {LXXXX} August 2010
India: Bihar State Highways II Project
Project Administration Manual
Contents
ABBREVIATIONS 5
I. PROJECT DESCRIPTION 1
A. Project Location, Description and Rationale 1 B. Impact and Outcome 2 C. Outputs 2
II. IMPLEMENTATION PLANS 2
A. Project Readiness Activities 2 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 4 C. Project Organization Structure 5
IV. COSTS AND FINANCING 6
A. Investment and Financing Plans 6 B. Detailed Cost Estimates by Expenditure Category 8 C. Detailed Cost Estimates by Financier 9 D. Allocation and Withdrawal of Loan Proceeds 10 E. Detailed Cost Estimates by Year 11 F. Fund Flow Diagram 12
V. FINANCIAL MANAGEMENT 13
A. Financial Management Assessment 13 B. Disbursement 13 C. Accounting 14 D. Auditing 14
VI. PROCUREMENT AND CONSULTING SERVICES 14
A. Procurement Capacity Assessment of BSRDC 14 B. Advance Contracting and Retroactive Financing 14 C. Procurement of Goods, Works and Consulting Services 16 D. Procurement Plan 16 E. Consultant's Terms of Reference for Supervision Consultant 18
VII. SAFEGUARDS 25
VIII. GENDER AND SOCIAL DIMENSIONS 27
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 29
A. Project Design and Monitoring Framework 29 B. Monitoring 31 C. Evaluation 31 D. Reporting 31 E. Stakeholder Communication Strategy 31
X. ANTICORRUPTION POLICY 32
XI. ACCOUNTABILITY MECHANISM 32
XII. RECORD OF PAM CHANGES 32
Appendices
Appendix 1: List of Project Roads and Summary of Design Standards Appendix 2: Consultant's Terms of Reference
Project Administration Manual Purpose and Process
The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.
The Bihar State Road Development Corporation Limited (BSRDC) is wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by BSRDC of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.
At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan 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.
After ADB Board approval of the project's report and recommendations of the President (RRP) changes
in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.
Abbreviations
ADB = Asian Development Bank ADF = Asian Development Fund AFS = audited financial statements BSRDC = Bihar State Road Development Corporation Limited CDTA = capacity development technical assistance CPS = Country Partnership Strategy CQS = consultant qualification selection DMF = design and monitoring framework EARF = environmental assessment and review framework EIA = environmental impact assessment EMP = environmental management plan ESMS = environmental and social management system FTP = full technical proposal FY = fiscal year GACAP = governance and anticorruption action plan GDP = gross domestic product GOB = Government of Bihar ICB = international competitive bidding IEE = initial environmental examination IND = India IPP = indigenous people plan IPPF = indigenous people planning framework km = kilometer LAR = land acquisition and resettlement LIBOR = London interbank offered rate NCB = national competitive bidding NGOs = nongovernment organizations PAI = project administration instructions PAM = project administration manual PIU = project implementation unit PPTA = project preparatory technical assistance RCD = Road Construction Department RP = resettlement plan QBS = quality based selection QCBS = quality- and cost based selection RRP = report and recommendation of the President to the Board SBD = standard bidding documents SGIA = second generation imprest accounts SH = state highway SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy TA = technical assistance TOR = terms of reference
1
I. PROJECT DESCRIPTION
A. Project Location, Description and Rationale
1. The Bihar State Highways II Project1 will build and upgrade about 356 kilometers (km) of state highways identified under the State Highway Development Program in the state of Bihar. Consulting services will be provided to support implementation of the civil works. Road improvement works under the Project include upgrading of existing roads to two lanes, strengthening culverts and bridges, constructing new road sections and bridges and cross-drainage structures, and constructing structures for resettlement and rehabilitation. For details on the project roads and the applied design criteria, please refer to Appendix 1 of this PAM. 2. ADB supports under the Country Partnership Strategy (CPS), India, 2009-2012 all levels of the road sector development as core infrastructure operation for inclusive sustainable economic growth. The project is consistent with the strategic objective set out in the CPS and included in the Country Operation Business Plan, India, 2010. 3. In India, road transport accounts for 68% of freight movement and 87% of passenger traffic. The national highways and the secondary system are unable to cope with the rapid traffic growth. In the road sector, freight traffic increased at about 12% per year and passenger traffic at about 8% in the past decade. The rapid growth in traffic leads to congestion, deterioration of roads and increase in the cost of transport. State highways, the secondary road system in India, link national highways with district headquarters and important towns. The secondary system comprises about 13% of the road network and carries about 40% of traffic. It is estimated that about half of the roads in the secondary system are of poor riding quality. 4. Bihar is one of the economically backward states of India. Judged by the per capita state income of Rs. 9,765 in the FY 2007, Bihar ranks far below the all India average of Rs. 33,299, which is a measure of standard of living. The Project will contribute to social benefits such as improved access to employment opportunities, health, education, and social services. The road network in Bihar is very poor in terms of coverage and conditions while demand for road transport is increasing. The road density in Bihar is only 861 km per million population compared with the national average of 2,828 km per million population. About half of villages lack all-weather road connectivity. Insufficient funding for road maintenance in the past has increased the number of roads that are beyond maintainable condition. 5. The Government of Bihar (GOB) is undertaking the State Highway Development Program to rehabilitate and upgrade state highways to at least two lanes and expand the state highway network by upgrading major district roads to two lanes. The program covers upgrading 2,831 km out of the 3,127 km of state highways during the 11th Five Year Plan period through various schemes, including GOB schemes, pilot projects such as Public-Private-Partnership scheme with a Built-Operate-Transfer contract for a major bridge and Asian Development Bank (ADB) assistance. Loan 2443-IND: Bihar State Highways Project is providing financial assistance for widening of 820 km of state highways to two lanes. The improvement of 356 km of state highways to be financed under the proposed loan is part of the program to help meet increased demands for road transport, and accelerate the process of sustainable economic development in the state.
1 The Project was prepared under PPTA-7198-IND: Bihar State Highways II Project.
2
6. As lack of road maintenance and inability to spend the allocated budget for road maintenance in the past were identified as key factors leading to the deteriorated status of many project roads, the focus of institutional strengthening by the capacity development technical assistance (CDTA) will be on completion of a state wide roads asset registry and improving maintenance management. In addition, the CDTA will support (i) collecting baseline data for monitoring of project results under the result framework, (ii) exploring options to generate increased revenues for road maintenance funding in Bihar and (iii) review and complement design standards for flood affected areas in north Bihar.
B. Impact and Outcome
7. The Project impact will be a more efficient state road transport system supporting sustainable economic growth in Bihar by (i) improving the state highway network’s efficiency by reducing the travel times, (ii) facilitating safe road transport by full implementation of the recommendations from the road safety audit for the project roads, and (iii) enhancing the government of Bihar’s capacity for road asset management and road maintenance. The project outcome will be increased transport efficiency and safety on project roads.
C. Outputs
8. The Project outputs will be (i) building and upgrading 356 km of state highways identified under the State Highway Development Program, and (ii) improved management of road assets and maintenance of project roads by BSRDC.
II. IMPLEMENTATION PLANS
A. Project Readiness Activities
Months Indicative Activities 1 2 3 4 5 6 Who responsible
Advance contracting actions EA (ongoing)
Retroactive financing actions X EA
Establish project implementation arrangements Government (ongoing)
ADB Board approval X ADB
Loan signing X Government/ADB
Government legal opinion provided X Government
Government budget inclusion Government (ongoing)
Loan effectiveness X ADB
3
B.
Overa
ll P
roje
ct
Imp
lem
en
tati
on
Pla
n
JF
MA
MJ
JA
SO
ND
JF
MA
MJ
JA
SO
ND
JF
MA
MJ
JA
SO
ND
JF
MA
MJ
JA
SO
ND
JF
MA
MJ
JA
SO
ND
JF
MA
MJ
JA
SO
ND
JF
MA
MJ
JA
SO
ND
A.
Pro
jec
t P
rep
ara
tio
n
Lo
an
Pro
cess
ing
an
d A
pp
rova
l by
AD
B
De
taile
d D
esi
gn
B.
Pro
ject
Imp
lem
en
tati
on
Co
nsu
lta
nts
Su
perv
isio
n C
on
su
ltan
ts (
SH
-78)
1.
Re
cru
it P
roje
ct I
mp
lem
en
tati
on
Co
ns
ulta
nts
2.
Co
nsu
ltin
g S
erv
ice
s E
xecu
tion
C.
Su
perv
isio
n C
on
su
ltan
ts (
oth
er
road
s)
1.
Re
cru
it P
roje
ct I
mp
lem
en
tati
on
Co
ns
ulta
nts
2.
Co
nsu
ltin
g S
erv
ice
s E
xecu
tion
D.
Civ
il W
ork
s (
SH
-78
)
1.
Pro
cure
me
nt
(Ad
van
ce A
ctio
n)
2.
Co
nst
ruc
tion
E.
Civ
il W
ork
s (
oth
er
road
s)
1.
Pro
cure
me
nt
2.
Co
nst
ruc
tion
De
fect
s &
Lia
bili
ty P
eri
od
AD
B =
As
ian
De
velo
pm
en
t B
an
k
So
urc
e:
As
ian
De
velo
pm
en
t B
an
k
201
520
10
2011
201
0
Item
20
14
201
320
09
4
III. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations – Roles and Responsibilities
Project implementation organizations
Management Roles and Responsibilities
• Executing agency Government of Bihar acting through Bihar State Road Development Corporation Limited
� overall coordination of project implementation � selection of subprojects � procurement of works � consultant recruitment � day-to-day project management � ensure compliance with safeguard requirements � withdrawal applications � project progress reports � maintaining project accounts • ADB � Monitor and review overall implementation of the
project in consultation with the EA including: the project schedule; actions required in terms of poverty reduction, environmental impacts, and resettlement plans and subproject selection, if applicable; timeliness of budgetary allocations and counterpart funding; project expenditures; progress with procurement and disbursement; statement of expenditure when applicable; compliance with particular loan covenants; and the likelihood of attaining the project’s immediate development objectives.
B. Key Persons Involved in Implementation
Executing Agency Government of Bihar acting through Bihar State Road Development Corporation Limited
Officer's Name : Mr. Pratyaya Amrit Position: Managing Director Telephone: 612 94700-01252 Email address: [email protected]
Office Address: RCD Mechanical Workshop Campus, Sheikhpura, Patna 800 014 Bihar
ADB South Asia Transport and Communications Division (SATC)
Staff Name: Sri Widowati Position: Director, SATC Telephone No. +63-2-632-6794 Email address: [email protected]
Mission Leader Staff Name: Markus Roesner Position: Transport Specialist, SATC Telephone No.: +63-2-632-4980 Email address: [email protected]
5
C.
Pro
ject
Org
an
izati
on
Str
uctu
re
EA
: G
ov
ern
men
t o
f B
iha
r acti
ng
th
rou
gh
Bih
ar
Sta
te R
oad
D
ev
elo
pm
en
t C
orp
ora
tio
n L
imit
ed
(B
SR
DC
)
• M
an
ag
ing
Dir
ec
tor
• C
hie
f G
en
era
l M
an
ag
er
• G
en
era
l M
an
ag
er
• D
ep
uty
Ge
ne
ral M
an
ag
er
• E
nvi
ron
me
nt
Off
ice
r •
Re
se
ttle
me
nt/
So
cia
l Off
ice
r •
Ro
ad
Sa
fety
En
gin
ee
r
As
ian
D
ev
elo
pm
en
t B
an
k
RC
D
Ro
ad
Se
cre
tary
E
ng
ine
er-
in-C
hie
f
Pro
ject
Imp
lem
en
tati
on
Un
it
(PIU
fo
r S
H 8
1)
Dy.
Ge
ne
ral M
an
ag
er
(Te
ch
)
Pro
ject
Imp
lem
en
tati
on
Un
it
(PIU
fo
r S
H 7
8)
Dy.
Ge
ne
ral M
an
ag
er
(Te
ch
)
2 P
roje
ct
Ma
na
ge
r
2 P
roje
ct
Ma
na
ge
r
Su
pe
rvis
ion
Co
ns
ult
an
t (S
H 7
8)
1
Civ
il W
ork
s C
on
tra
ct
Su
pe
rvis
ion
Co
ns
ult
an
t (S
H 8
1,
90
an
d 9
1)
3
Civ
il W
ork
s C
on
tra
cts
Pro
ject
Imp
lem
en
tati
on
Un
it
(PIU
fo
r S
H 9
0)
Dy.
Ge
ne
ral M
an
ag
er
(Te
ch
)
Pro
ject
Imp
lem
en
tati
on
Un
it
(PIU
fo
r S
H 9
1)
Dy.
Ge
ne
ral M
an
ag
er
(Te
ch
)
2 P
roje
ct
Ma
na
ge
r
2 P
roje
ct
Ma
na
ge
r
6
IV. COSTS AND FINANCING
A. Investment and Financing Plans
9. The project is estimated to cost $424,000,000 including local taxes and duties estimated at $30.5 million and financing charges. The investment plan is summarized in Table 1. ADB will finance the local taxes and duties associated with project expenditures for works in the amount of about $27.7 million. This is in line with the CPS for India2, which considers taxes and duties not exceeding 10% of project costs reasonable, transparent, and nondiscriminatory.
Table 1: Project Investment Plan ($ million)
Item Amounta
A. Base Costb
1. Investment Component 370.68
2. Institutional Development Component 3.00
Subtotal (A) 373.68
B. Contingenciesc
33.82
C. Financing Charges During Implementationd 16.50
Total (A+B+C) 424.00 a Includes taxes and duties of about $30.5 million; about $27.7 million of taxes and duties for works will be financed
from ADB loan resources.
b In mid-2010 prices.
c Physical contingencies computed at 5% for civil works. Price contingencies computed at 0.8% on foreign
exchange costs and 6% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.
d Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the
5-year forward London interbank offered rate plus a spread of 0.3%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount.
Source: Asian Development Bank estimates 10. The government has requested a loan of $300,000,000 from ADB’s ordinary capital resources to help finance the project. The loan will have a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, subject to a spread of 0.3%, a commitment charge of 0.15% per year, and other such terms and conditions set forth in the draft loan agreement. The government has provided ADB with (i) the reasons for its decision to borrow under ADB’s LIBOR-based lending facility based on these terms and conditions, and (ii) an undertaking that these choices were its own independent decision and not made in reliance on any communication or advice from ADB. 11. The ADB loan will finance 70.75% of the project cost. This is considered acceptable, taking into account that the GOB has allocated its counterpart financing for 29.25% of the cost. By including more roads in the loan, the benefits will be spread into more areas of the state. 12. The Government will provide the loan proceeds in local currency to GOB on the same terms and conditions as received from ADB. GOB will bear the foreign exchange risk on the loan. The financing plan for the Project is in Table 2.
2 Please refer to CPS, India, 2009-2012, Appendix 2.
7
Table 2: Financing Plan
Source Amount
($ million) Share of Total (%)
Asian Development Bank 300.00 70.75
Government 124.00 29.25
Total 424.00 100.00 Source: Asia Development Bank estimates
8
B.
Deta
iled
Co
st
Esti
mate
s b
y E
xp
en
dit
ure
Cate
go
ry
($ m
illio
n)
Fo
reig
n
Lo
cal
To
tal
Item
Exch
an
ge
Cu
rren
cy
Co
st
Go
vern
men
t A
DB
A.
L
an
d A
cq
uis
itio
n, R
esett
lem
en
t an
d R
eh
ab
ilit
ati
on
, U
tility
sh
ifti
ng
0
.00
7
8.9
3
78
.93
7
8.9
3
0.0
0
B.
Civ
il W
ork
s
1
S
H 7
8:
Bih
ta –
Sa
rme
ra
26
.35
6
1.4
8
87
.83
7
.20
8
0.6
3
2
S
H 8
1:
Sa
kk
ad
i - N
as
rig
un
j 1
6.3
6
38
.18
5
4.5
4
4.4
7
50
.07
3
S
H 9
0:
Mo
ha
mm
ad
pu
r -
Ch
ap
ra
16
.31
3
8.0
7
54
.38
4
.45
4
9.9
3
4
S
H 9
1:
Bir
pu
r -
Ud
ak
ish
un
ga
nj
24
.45
5
7.0
4
81
.49
6
.68
7
4.8
1
Su
bto
tal (B
) 83.4
7
194.7
7
278.2
4
22.8
0
255.4
5
C.
Co
nsu
ltin
g S
erv
ices
3.2
0
7.3
0
10
.50
0
.00
1
0.5
0
D.
Pro
ject
Man
ag
em
en
t 0
.00
3
.00
3
.00
3
.00
0
.00
E.
Insti
tuti
on
al D
ev
elo
pm
en
t (E
qu
ipm
en
t)
3.0
0
0.0
0
3.0
0
0.0
0
3.0
0
F.
Co
nti
ng
en
cie
s
1
P
hys
ica
l 5
.37
1
2.5
3
17
.90
1
.47
1
6.4
3
2
P
ric
e
4.7
8
11
.14
1
5.9
2
1.3
0
14
.62
Su
bto
tal (F
) 10.1
5
23.6
7
33.8
2
2.7
7
31.0
5
G.
Fin
an
cin
g C
ha
rges D
uri
ng
Im
ple
men
tati
on
1
In
tere
st
Du
rin
g I
mp
lem
en
tatio
n
15
.60
0
.00
1
5.6
0
15
.60
0
.00
2
C
om
mitm
en
t C
ha
rge
s
0.9
0
0.0
0
0.9
0
0.9
0
0.0
0
Su
bto
tal (G
) 16.5
0
0.0
0
16.5
0
16.5
0
0.0
0
To
tal P
roje
ct
Co
st
(A+
B+
C+
D+
E+
F+
G)
116.3
2
307.6
7
424.0
0
124.0
0
300.0
0
SH
= s
tate
hig
hw
ay
9
C.
Deta
iled
Co
st
Esti
mate
s b
y F
inan
cie
r ($
mill
ion
)
G
ov
ern
men
t A
DB
Item
Am
ou
nt
% o
f c
os
t c
ate
go
ry
Am
ou
nt
% o
f c
os
t c
ate
go
ry
To
tal
Co
st
A
.
Lan
d A
cq
uis
itio
n, R
esett
lem
en
t an
d R
eh
ab
ilit
ati
on
, U
tility
sh
ifti
ng
7
8.9
3
10
0.0
0%
0
.00
0
.00
%
78
.93
B.
Civ
il W
ork
s
22
.80
8
.19
%
25
5.4
5
91
.81
%
27
8.2
4
C.
Co
nsu
ltin
g S
erv
ices
0.0
0
0.0
0%
1
0.5
0
10
0.0
0%
1
0.5
0
D.
Pro
ject
Man
ag
em
en
t 3
.00
1
00
.00
%
0.0
0
0.0
0%
3
.00
E.
Insti
tuti
on
al D
ev
elo
pm
en
t (E
qu
ipm
en
t)
0.0
0
0.0
0%
3
.00
1
00
.00
%
3.0
0
F.
Co
nti
ng
en
cie
s
2.7
7
8.1
9%
3
1.0
5
91
.81
%
33
.82
G.
Fin
an
cin
g C
ha
rges D
uri
ng
Im
ple
men
tati
on
1
6.5
0
10
0.0
0%
0
.00
0
.00
%
16
.50
T
ota
l P
roje
ct
Co
st
(A+
B+
C+
D+
E+
F+
G)
124.0
0
29.2
5%
300.0
0
70.7
5%
424.0
0
AD
B =
As
ian
De
velo
pm
en
t B
an
k
10
D. Allocation and Withdrawal of Loan Proceeds
13. Percentages of ADB Financing: Except as ADB may otherwise agree, each item of expenditure shall be financed out of the proceeds of the Loan on the basis of the percentages set forth in the tables attached to table 3. 14. Reallocation: Notwithstanding the allocation of Loan proceeds and the withdrawal percentages set forth in the tables,
i. if the amount of the Loan allocated to any category appears to be insufficient to finance all agreed expenditures in that category, ADB may, in consultation with the Government, (i) reallocate to such category, to the extent required to meet the estimated shortfall, amounts of the loan which have been allocated to another category but, in the opinion of ADB, are not needed to meet other expenditures, and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the withdrawal percentage applicable to such expenditures in order that further withdrawals under such category may continue until all expenditures thereunder will have been made; and
ii. if the amount of the loan allocated to any category appears to exceed all agreed
expenditures in that category, ADB may, in consultation with the Government, reallocate such excess amount to any other Category.
Table 3: Allocation and Withdrawal of Loan Proceeds
CATEGORY ADB FINANCING
Total Amount Allocated for ADB Financing
Percentage and Basis for Withdrawal from the Loan
Account ($)
Number
Item
Category
1 Works 255,450,000 92 percent of total expenditure claimed
2 Equipment 3,000,000 100 percent of total expenditure claimed*
3 Consulting Services 10,500,000 100 percent of total expenditure claimed*
4 Unallocated 31,050,000
Total 300,000,000
ADB = Asian Development Bank * Exclusive of taxes and duties imposed within the territory of the Borrower
11
E.
Deta
iled
Co
st
Esti
mate
s b
y Y
ear
($ m
illio
n)
($ m
illio
n)
Item
T
ota
l C
ost
F
Y2
01
0
FY
20
11
FY
20
12
F
Y2
01
3
FY
20
14
A.
Inv
estm
en
t C
osts
1
La
nd
Ac
qu
isit
ion
, R
es
ett
lem
en
t &
Re
ha
bili
tati
on
, U
tilit
y s
hif
tin
g
78
.93
20
.06
1
8.8
8
1
8.8
8
15
.00
6
.11
2
C
ivil
Wo
rks
2
78
.25
31
.16
5
4,8
8
8
5.5
5
85
.00
2
1.6
6
3
C
on
su
ltin
g S
erv
ice
s a
nd
Pro
jec
t M
an
ag
em
en
t 1
3.5
0
2
.00
3
.50
3.5
0
3.0
0
1.5
0
4
In
stit
utio
na
l De
velo
pm
en
t (E
qu
ipm
en
t)
3.0
0
0
.00
1
.50
1.5
0
0.0
0
0.0
0
Su
bto
tal (A
) 373.6
8
5
3.2
2
78
.76
10
9.4
3
10
3.0
0
29.2
7
B.
Co
nti
ng
en
cie
s
33.8
2
0
.00
0
.00
11
.27
1
1.2
8
11
.27
C.
Fin
an
cin
g C
ha
rges D
uri
ng
Im
ple
men
tati
on
16.5
0
1
.37
4
.16
4.0
5
3.9
2
3.0
0
T
ota
l P
roje
ct
Co
st
(A+
B+
C)
424.0
0
54.5
9
82.9
2
124.7
5
118.2
0
43.5
4
%
To
tal P
roje
ct
Co
st
100
%
12.8
8%
19,5
6%
29.4
2%
27.8
8%
10.2
6%
12
F. Fund Flow Diagram
15.. The loan will adopt the reimbursement method for payments. The Government of Bihar will furnish BSRDC with a sufficient budget for payments to the contractors based on the submitted invoices. BSRDC will then submit claims to the Borrower, who will submit them to ADB. ADB will pay to the Borrower out of the loan and the Borrower will provide Additional Central Assistance to the GOB. The following diagram shows how the funds will flow from ADB and the Borrower to implement project activities.
Asian Development Bank
Withdrawal Payment Application (Step 6) (Step 5)
Borrower
(Ministry of Finance / CAAA)
Additional Central Assistance (Step 7)
Claim (Step 4)
Government of Bihar
Project Account of BSRDC
Budget allocation (Step 1)
submits Payment Invoice (Step 3) (Step 2)
Contractor
Legend:
Fund Flow
Document Submission
13
V. FINANCIAL MANAGEMENT
A. Financial Management Assessment
16. The executing agency for the project will be Government of Bihar acting through Bihar State Road Development Corporation Limited (BSRDC). BSRDC was incorporated on 20 April 2009 and prior to incorporation, all the expenditure were made and monitored by the Road Construction Department, Government of Bihar. BSRDC is now maintaining a separate account for the project.
B. Disbursement
17. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time),3 and detailed arrangements agreed upon between the Government and ADB. 18. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),4 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) to subprojects financed by ADB. 19. Disbursements will be made pursuant to ADB's reimbursement procedure where ADB pays from the loan account to the borrower’s account for eligible expenditures which have been incurred and paid for by the project out of its budget allocation or its own resources. BSRDC will be responsible for (i) preparing disbursement projections, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting supporting documents, and (iv) preparing and sending withdrawal applications to ADB. 20. The Statement of Expenditure (SOE) procedure may be used for reimbursement of eligible expenditures in accordance with the Loan Disbursement Handbook and detailed arrangements agreed upon between the Borrower and ADB. Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed the equivalent of $100,000. 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. 21. Before the submission of the first withdrawal application, the borrower should 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 borrower is to consolidate claims to meet this limit for reimbursement claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing.
3 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf
4 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
14
C. Accounting
22. GOB and BSRDC will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow international accounting principles and practices.
D. Auditing
23. BSRDC will cause the detailed consolidated project accounts to be audited in accordance with International Standards on Auditing and the Government's audit regulations by an auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB within 6 months of the end of the fiscal year by BSRDC. The Government and BSRDC have 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. For revenue generating projects only, ADB requires audited financial statements (AFS) for each executing agency associated with the project.
VI. PROCUREMENT AND CONSULTING SERVICES
A. Procurement Capacity Assessment of BSRDC
1. Summary of the Procurement Assessment 24. BSRDC has established a procurement division composed of seven full time permanent employees of Road Construction Department (RCD) who were on deputation assignment to the BSRDC. They have sufficient experience in procurement under Loan 2433-IND: Bihar State Highways Project and successfully awarded 9 contracts within 6 to 10 months from Invitation for Bids (IFB) posting. For each procurement exercise, an ad-hoc tendering committee is constituted consisting three to four of these staff. Final approval of contract is with the Managing Director of BSRDC. 25. BSRDC is adopting ADB procurement guidelines and using ADB standard bidding documents, MDB Harmonized FIDIC general conditions of contract and bidding procedures under Loan 2443-IND and package SH 78 (advance contracting under the proposed project). Approval of contracts is delegated by the Board of Directors (BoD) of BSRDC to the Managing Director, except for proposed contract amount higher than 10% above Engineer's estimate which is retained with BoD. No difficulty is envisaged as the procurement and proposal evaluation team has acquired enough experience from Loan 2443-IND. 26. As BSRDC has no procurement manual for recruitment of consulting services, BSRDC has followed ADB Guidelines on the Use of Consultants under earlier Loan 2433-IND, where two teams of international firms for construction supervision have been recruited using QCBS, with 80:20 technical/financial ratio. In the same manner, BSRDC will follow ADB guidelines in recruiting two teams of construction supervision consultants under the proposed project. No difficulty is expected as the BSRDC's consultant selection committee has already acquired enough experience from Loan 2443-IND. 27. All BSRDC activities, projects, contracts, employees, records, facilities, procurement power, financial powers, functions and responsibilities of each official, policies and procedures are clearly stipulated in the BSRDC Article of Incorporation and By-Laws. All transactional
15
authorities are within BSRDC. 28. BSRDC has instituted a referencing system in records keeping. All procurement files including IFBs, winning bids, evaluation reports, pre-contract documents, contracts documents and invoices are kept in single contract files. GOI law requires keeping all records for eight years which sufficiently covers ADB requirement to keep the project records for two years after project completion, considering that all projects under the proposed loan are envisioned to be completed within 3 years following procurement activities.
2. Summary, Risks and Recommendations for Mitigation of Risks 29. The procurement division of BSRDC has sufficient experience gained from procurement exercises under Loan 2443-IND and has in fact showed steady improvement in the procurement process by reducing the actual period for evaluation, award and approving contracts from 11 months (first BSHP-I contract) down to 7 months (for contract for SH-78, advanced contracting under the proposed project). 30. The procurement capacity achieved by the successful implementation of Loan 2443-IND might be at risk, if the staffing in the procurement office of BSRDC changes. Therefore, GOB and BSRDC should ensure that staff and officers assigned in procurement division are maintained in BSRDC until at least all procurements under the proposed project are completed. 31. The estimated cost of each contract under the proposed project is more than US$10 million and will be procured through international competitive bidding using single-stage; two envelope bidding procedures. As required under Appendix 1 of ADB Procurement Guidelines, prior review is recommended.
B. Advance Contracting and Retroactive Financing
32. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (2010, as amended from time to time)5 and ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time)6. The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. 33. The borrower and the executing agency have been advised that approval of advance contracting and retroactive financing does not commit ADB to approve the loan or finance the Project. 34. Advance contracting. ADB approved advance contracting for goods, works, and consulting services in June 2009. Advance contracting includes procurement of civil works, works and consulting services. The steps to be concluded in advance are (i) prequalification of contractors, tendering, and bid evaluation for civil works packages; (ii) preparation of tender documents to procure materials and equipment; (iii) evaluation of bids; and (iv) recruitment of consultants. 35. Retroactive financing. Withdrawals from the Loan Account may be made for reimbursement of reasonable expenditures in connection with civil works, consulting services, and equipment, up to $60 million, the equivalent of 20% of the total ADB loan, incurred under
5 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf
6 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf
16
the Project before the Effective Date, but not earlier than twelve (12) months before the signing of the loan agreement.
C. Procurement of Goods, Works and Consulting Services
36. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines. 37. International competitive bidding procedures will be used for civil works contracts estimated to cost $10 million or more. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000. 38. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C. 39. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants.7 The terms of reference for all consulting services are detailed in Section D. 40. An estimated 2,936 person-months (85 international, 2,851 national) of consulting services are required for construction supervision. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality to cost ratio of 80:20; the consultants will be required to submit Full Technical Proposals (FTP).
D. Procurement Plan
Project Information Country India Name of Borrower India Project Name Second Bihar State Highways Project Loan or Technical Assistance Reference - Date of Effectiveness Targeted for November 2010 Asian Development Bank Financing Amount $300,000,000 Executing Agency Government of Bihar acting through Bihar
State Road Development Corporation Limited Approval Date of Original Procurement Plan Targeted at September 2010 Approval of Most Recent Procurement Plan Not applicable Publication for Local Advertisements October 2009 Period Covered by this Plan October 2009 to March 2011
7 Checklists for actions required to contract consultants by method available in e-Handbook on Project
Implementation at: http://www.adb.org/documents/handbooks/project-implementation/
17
Section 1: Procurement Thresholds and 18-Month Procurement Plan Procurement Thresholds, Goods, and Works Procurement Method Thresholds International Competitive Bidding Works All civil works above $10 million National Competitive Bidding (NCB) Worksa Up to $10 million NCB Goodsb Up to $1 million Shopping Goods Below $0.1 million a NCB procedures adopted for procurement of Works will be in accordance with Section 3 NCB Annex.
b NCB procedures adopted for procurement of Goods will be in accordance with Section 4 NCB Annex.
Procurement Thresholds, Consulting Services Procurement Method To be used above/below
Quality- and Cost-Based Selection (QCBS) FTP: Over $1,000,000 FTP = full technical proposal.
Section 2: Indicative Contract Packages List of Contract Packages in Excess of $100,000, Goods, Works, and Consulting Services
Ref Contract Description Estimated
Cost Procurement
Method
Expected Date of
Advertisement Prior
Review 1. Consulting services for
construction supervision (two packages)
$10.5 million
QCBS, 80:20 with FTP
October 2009 (Advertised)
Second Contract: July 2010
Yes
2. Civil works contracts SH 78 Bihta-Sarmera SH 81 Sakkadi-Nasrigunj SH 90 Mohammadpur-Chapra SH 91 Birpur-Udakishunganj
$87.8 Million $54.5 Million $54.4 Million $81.5 Million
ICB ICB ICB ICB
October 2009
July 2010 July 2010 July 2010
Yes
Yes Yes Yes
3. Equipment (specification and contract packaging will be finalized during project implementation by the TA consultants.)
In total
$3.0 million
NCB (see details) or Shopping
Targeting
December 201
Yes (NCB)
a
No (Shopping)
QCBS = quality and cost-based selection, FTP = full technical proposal, ICB = international competitive bidding, NCB = national competitive bidding, SH = state highway, TA = technical assistance
a ADB’s prior review for at least the first two packages and post review for subsequent packages.
18
E. Consultant's Terms of Reference for Supervision Consultant
41. The following Terms of Reference (TOR) apply for the Supervision Consultants to be recruited by BSRDC. The TOR for the Consultants to be recruited for the implementation of the CDTA are attached as Appendix 2 to this PAM.
1. Introduction and Background
42. BSRDC has been entrusted by the Government of Bihar with the responsibility of rehabilitating and strengthening state highways under Bihar State Highways II Project. These TOR define the services required of two consultants (Supervision Consultants) to be engaged to assist the BSRDC in the implementation of the aforementioned Project, one each for Subproject SH 78, and Subprojects SH 81, 90 and 91, respectively. The Project is being considered for financing by the Asian Development Bank (the Bank).
43. The project scope is to widen the existing carriageway to two lane carriageway width with earthen shoulders on either side, strengthening/reconstruction of existing pavement, rehabilitation and widening of the existing bridges, construction of new bridges, rehabilitation of existing culverts and construction of new culverts, construction of bus stops, truck parking areas, improvement of road junctions, etc. The contracts for the construction work will be executed under FIDIC Conditions of Contracts.
44. The supervision consultancy services will broadly include project management as ‘Engineer' in terms of civil works contract, supervision and monitoring, quality assurance, environmental management, contract management and making engineering decisions, approval of decision, verification of quantity, recording of measurements and certification of measurement and bills of the civil works contractor (Contractor), administering for ensuring successful and timely implementation of these construction packages.
2. Objectives and Scope
2.1 Objectives
45. The objective of the consulting services is to assist the BSRDC to implement the Project as follows:
(i) Ensure high standards of quality assurance in the execution of work and completion of work within stipulated time limit;
(ii) Comprehensive supervision of project implementation activities carried out by the Contractor to ensure complete compliance with the drawings, technical specifications and various stipulations contained in the Contract Documents;
(iii) Efficient construction supervision by personnel who are experienced in modern methods of construction supervision and contract management; and
(iv) Provide external monitoring of resettlement plan and environmental management plan implementation.
2.2 Scope of Consulting Services:
46. The scope of the supervision consulting services for each of the major areas includes but is not limited to the following activities:
47. The Supervision Consultant will be responsible for the supervision of all construction work. As the ‘Engineer’, the consultant will administer the Construction Contracts for Packages and ensure that the contractual clauses, with respect to both quality and quantity of work, are respected and the works are constructed in accordance with the provisions of the Construction Contracts. The Consultant shall designate its CEO or one of the full time Directors of the firm/company to act as "Engineer" for the civil works Contract. The Team Leader of the
19
consultant's team resident at the project site shall be nominated as Engineer’s Representative and shall act on behalf of the Engineer. The Engineer will delegate such authority to the Engineer’s representative as may be necessary for day to day work. However, the Supervision Consultant/the Engineer shall be responsible for all action taken by Engineer’s representative and his team. For this purpose the Engineer will undertake regular visits to the project site.
48. The supervision consultant will make all necessary measurements and control the quality of works. The supervision consultant will make all engineering decisions required for the successful and timely implementation of the Construction Contract. He will have all the powers that are defined as those of ‘Engineer’ with the exception of the following, for which he will seek prior approval of the “Employer”:
(i) issuing the order to commence the works; (ii) issuing/approving variation orders which have financial implications; except in an
emergency situation as reasonably determined by the supervision consultant; (iii) issuing/approving variations in quantities exceeding 10 percent variation for
individual item or aggregate variation exceeding 5% of the contract value; (iv) issuing/approving/sanction of additional items, sums or costs and variation of
rates and prices; (v) approving subletting of any part of the works; and (vi) approving any extension of contractual time limits. (vii) stopping and/or termination of the contractor for works.
49. The supervision consultant shall undertake a review of the detailed project report submitted by the Detailed Project Report (DPR) consultant and specifications, drawings and Bill of Quantities provided under the construction contract for the purpose of identifying any defects or omissions, which compromise the completeness or consistency of the design. This review shall be carried out immediately after the services commence and shall be completed within one month. On completion of the review, the supervision consultant shall suggest modifications in the technical provisions provided in the DPR/Civil Works Bid Document and shall prepare fresh “Good for Construction” Drawings to be issued to the Civil Works Contractor. This exercise needs to be done in consultation with and with due concurrence of BSRDC. The supervision consultant shall submit six copies of the review report to the Employer along with suggested changes in provisions.
50. In addition to or as an expansion of the activities and responsibilities required of the Engineer as detailed in Construction Contracts, the supervision consultant will, inter alia, undertake, but not be limited to, the following activities:
2.2.2 General
(i) Give the order to commence the works:
(ii) administer the Construction Contracts, approve materials, issue variation orders to the contractors and ensure that the quality of the works is in accordance with the contractual specifications;
(iii) approve/suggest modifications in the contractor’s work program, method statements, material sources, etc;
(iv) monitor progress of the Works, identify causes, or potential causes, of any delay and advise the Employer of suitable corrective actions in a timely manner;
(v) review and approve Contractor proposed personnel for positions nominated in the Contract;
20
(vi) provide assistance to the Employer in respect of contract implementation, claims and other matters;
(vii) advise and assist the Employer with respect to the arbitration, the appeal of arbitration or litigation relating to the works, whenever required;
(viii) provide other specialist services relevant to the Project as may be agreed to during negotiations or ordered by the Employer;
(ix) monitor and report on the implementation of the Environmental Management Plan
(x) monitor and report on the implementation of the Resettlement Plan in accordance with the ADB’s Safeguard Policy Statement..
(xi) Monitor the status of the contractor’s compliance with HIV/AIDS provisions in the Civil Works Contracts.
(xii) design a project performance and management system (PPMS) and undertake project performance monitoring and evaluation of the Project in accordance with the Bank’s PPMS Handbook. Baseline data will be collected by the supervision consultants assisting the Employer, before Project commencement, throughout implementation and at Project completion.
(xiii) ensure that the construction methods as proposed by the contractor for carrying out the works are satisfactory, with particular reference to the technical requirements of sound environmental standards on the basis of Bank’s Environmental Guidelines for Selected Infrastructure Development Project (Highways & Roads), inspection of contractor’s construction equipment, safety of the works, property, personnel, and general public.
(xiv) prepare and issue the following reports in hard and soft copies; the format and content for each report is to be acceptable to the Employer: A. an Inception/ commencement Report along with a construction
supervision manual in 5 copies, to be submitted within 30 days of commencement of services. The commencement report shall contain the details of all meetings held with the Client and the Contractor and decisions taken therein, the resources mobilized by the Consultants as well as the Contractor and the Consultants’ perception in the management and supervision of the project. The Report shall also include the Master Work Programme and Resource Mobilization for the Project. The primary objective of the Supervision Manual will be to evolve guidelines for administration, supervision and management of the project. Such a manual is not intended to be a contractual document nor is it to take precedence over the specifications. The Supervision Manual will merely act as a guide and reference to the staff of the client and the contractor in the management and supervision of the project in discharging their duties in a smooth and systematic manner.
B. a brief monthly progress report in 5 copies which should be submitted within 7 days of the end of each month.
C. a detailed quarterly report in 5 copies, to be submitted within 14 days of the end of each quarter. Quarterly reports should include description of project activities, illustrated by progress/completion photographs, status of any delays and contractual claims, and details of all latest financial projections. The Progress Report (monthly and quarterly) shall contain details of all meetings, decisions taken therein mobilization of resources (Consultants' and the Contractors') physical and financial progress and the projected progress for the forthcoming periods. The report shall clearly bring out the delays, if any, reasons for such delay(s) and the
21
recommendations for corrective measures. The report shall also contain the performance data for Contractor's plant and equipment;
D. a detailed Contract Completion/ Final Report in 6 copies are to be submitted to the Employer. The consultant (The Engineer) will prepare a comprehensive final completion report of the construction contract package after completion of the work. The report shall incorporate summary of the method of construction, the construction supervision performed, as built construction drawing, problems encountered and solutions undertaken thereon and recommendations for future projects of similar nature to be undertaken by the employer. The Engineer will then summarise and consolidate in a single report. The consultant shall submit the self appraisal report within the prescribed time summarizing the following details: a. Details of Personnel including substitution made during the
assignment. b. Details of variation orders issued. c. Details of extension of time granted to the Contractor. d. Details of Quality Assurance System. e. Quality observed at site by the consultant. f. Details of claims. g. Special preventive measures for maintenance suggested by the
consultant. E. a Quality Assurance Manual in 7 copies, detailing all QA/QC procedures,
to be submitted within 30 days of commencement of services. F a Maintenance Manual, detailing routine and periodic maintenance tasks
that will be required to maintain the completed Project. Draft copies of this manual should be submitted for comments to the Employer within 12 months of commencing services;
(xv) interpretation of the Technical Specifications, and other Contract Documents;
2.2.3 Design/Technical
(i) Issue good for construction drawings based on DPR, tender drawings, field survey undertaken by the Contractor/Consultant, taking into account the actual site conditions. Good for construction drawings are to provide full construction details which will include, but not be limited to, the following:
a. detailed highway geometry. This work will include if required, amending the DPR alignment plan and profile drawings based on updated topographic survey of the project site, including data gathered by the Contractor as work proceeds,
b. detailed drainage, including extension and connections to existing culverts and drains; and associated earthworks protection. In urban areas detailing is required for entire storm water runoff collection system;
c. details of all road furniture, stripping and all other traffic control and safety measures including all wayside amenities;
Good for construction drawings shall be issued by the Supervision Consultant as early as possible, but in any case, no later than 14 days from the date of submission of relevant data by the contractor.
22
(ii) ensure all bridge details are complete and to modify the design and drawings wherever required due to founding level as a result of the change in the founding strata or any other reason at the time of execution. .
(iii) ensure that good for construction drawings as issued to the contractor are complete, consistent and coherent across the entire project;
2.2.4 Quality Control
(i) review all mix designs proposed by the contractors and approve/suggest modifications in the mix design, laying methods, sampling and testing procedure, and quality control measures, to ensure required standard and consistency in quality at the commencement of items. The approval of mix designs with or without modifications shall be issued as early as possible, but in any case not later than the time limit prescribed in the relevant specifications. In cases, where no time limit is prescribed in the specifications, approval shall be issued not later than 14 days from the date of submission of Job Mix Formula (JMF) by the Contractor. It is advised that the Supervision Consultant's representative on the project road should associate himself with the Job Mix Design done by the Contractor so as to save time taken by this activity;
(ii) evolve a system of Quality Assurance of works, including, but not limited to, establishing testing frequencies and acceptance criteria for all construction activities based on best international practices;
(iii) inspect the performance of the work with regard to workmanship, compliance with the specifications and all necessary testing required for acceptance of any item of work;
(iv) inspect and approve all materials sources nominated by the Contractor; (v) assess and check the laboratory and field tests carried out by the contractors,
and carry out independent tests; (vi) issue orders to the Contractor to remove or make good any work which is found
to be: a. not in accordance with the drawings; b. not in accordance with the specifications in terms of either work method or
materials specification; c. covering work which has not been inspected for acceptance or rejected as
unacceptable; (vii) maintain records of all testing work, including cross referencing to items of work
to which each test refers and location from which any samples were obtained for testing;
2.2.5 Construction Supervision
(i) assist/advise “Employer” for advance actions required to be taken for handing over of site and in achieving different milestones for completion of projects as per schedule;
(ii) assist Employer in proper monitoring/progress of works and implementation of the project through computer aided project management techniques;
(iii) approve and/or issue good for construction drawings including variations thereof and approve the setting out of the works and give instructions to the contractors;
(iv) prepare/issue modified good for construction drawings based on the initial review conducted by the consultant and amendments agreed to by the Employer;
(v) prepare/issue modified good for construction drawings required for any Variation Order, or any other change, agreed to by the Employer;
(vi) approve Contractor proposed designs/drawings for temporary works;
23
(vii) check Contractor setting out for conformance with the good for construction / working drawings;
(viii) inspect at regular intervals the Contractor plant and facilities, for both construction work and workers accommodation, to ensure that they conform with both the conditions of contract and all government regulations;
(ix) inspect all the Contractor safety measures, including labor welfare and notify immediately both the Employer and the Contractor of any infringement or violation;
(x) maintain records such as Good for construction/working / as-built drawings, test data, details of variations, correspondence and diaries in the formats approved/specified by the Employer;
(xi) inspect the Works, or any part of the Works, on Substantial Completion and advise the Employer of any outstanding work, including defects to be remedied, to be completed during the Defects Liability period. This inspection is to be performed before any part of the Works is accepted as Substantially Complete;
(xii) inspect the works at appropriate intervals during the Defect Liability period and issue the Defect Liability certificate;
(xiii) at the completion of the contract verify the “as-built drawings” as true record of the works as constructed;
(xiv) assist Employer in coordination work with different agencies and hold meetings for proper and timely implementation of the Project;
(xv) liaise and coordinate with relevant authorities to remove all obstacles and encumbrances from the project site, including utility relocation and tree cutting, as required;
2.2.6 Measurement and Payment
(i) make measurements and keep measurement records, including the measurement books issued to him by the Employer;
(ii) issue interim certificates for payments; (iii) certify completion of part or all of the works; (iv) review and ensure continuity of Contractors’ sureties in approved formats; (v) prepare quarterly cash flow projections for the Employer in a format acceptable
to the Employer. Cash flows should identify budget estimates for all outstanding work;
(vi) update cost estimates each year or at quarterly completion (25 percent, 50 percent, 75 percent, and 100 percent) of the Project, whichever takes place early;
(vii) maintain records of all plant, labor and materials used in the construction of the Works;
(viii) check Contractor materials ordering schedule; (ix) analyze any contractual claim submitted by the Contractor and prepare a report
for the Employer addressing the contractual basis, in terms of both technical and financial issues, for the claim and recommendations for a response to the Contractor;
(x) assist the Employer in providing clarifications/explanations to the observations made from time to time, by Auditors;
(xi) prepare financial statements and withdrawal applications;
51. The supervision consultant will process interim and final payment claims of the Contractor. Interim monthly payments shall be based on interim payment certificates processed
24
by the supervision consultant following claims filed by the Contractor. The supervision consultant will be accountable for the quality and the quantities of the work. Whenever final measurements are to be made, the supervision consultant’s Team Leader will inform the contractor and the employer several days in advance. The employer may authorize his representative who will be empowered to participate and to check, if he so wishes, any measurement.
52. Engineer’s Representative and his staff under the overall control of the supervision consultant (the Engineer) shall carry out such duties and exercise authority as may be delegated to him by the Engineer. The Engineer may, from time to time, delegate to the Engineer’s Representative any of the duties and authorities vested in the Engineer and he may at any time revoke such delegation. Any such delegation or revocation shall be in writing and shall not take effect until a copy thereof has been delivered to the Employer and the Contractor.
53. The supervision consultant shall, if so required by the Employer, provide any of the following Services as Additional Services: (a) prepare reports, including technical appraisals, additional contract documentation and/or reviewing and commenting on Contractor’s proposals, as may be required for any additional work required for the successful completion of the Project; and (b) provision of any other specialist services as may be required from time to time. All Additional Services, other than minor extras which do not materially affect the scope of work, will be authorized by the Employer at the rates established in the Construction Supervision Contract, or, when services require the use of specialists not listed in the Contract, as mutually agreed upon.
3 Timing of Services
54. The period of services has been derived on the basis of the consulting services commencing two months prior to commencement of construction and extending twelve months beyond completion i.e. up to the end of the Defect Liability Period. However, neither the commencement nor completion of construction work shall be construed as necessary conditions of either commencement or completion of services. 4 Staffing 55. The staffing levels set out in these TOR are for guidance only. The consultants may propose alternative arrangements which in their opinion will provide supervision services of equivalent desired quality whilst ensuring that the input of any individual member of the international staff is not less than that indicated in Annex 1. Consultants are required to furnish the Bio-data of the following key personnel:
(i) Team Leader (Engineer’s Representative) (ii) Senior Highway Engineer (iii) Senior Bridge/ Structural Engineer (iv) Senior Pavement / Materials Engineer (v) Senior Contract Specialist cum Quantity Surveyor (vi) Resettlement and Rehabilitation cum Social Development Expert (vii) Environment Specialist (viii) CAD Engineer (ix) Resident Engineer (x) Road Safety Expert
25
5 Facilities
56. The consultant will detail in his technical proposal the required provisions for all facilities, equipment, transport, supplies and supporting staff which he considers necessary to successfully carry out the services for implementation of the Project and will also include the price of those items in his financial proposal. In particular, the consultant should note that the following items must be included in his financial proposal as they will not be provided for the use of the consultant:
(i) Base office, site office, accessories and its maintenance; (ii) Residential accommodation and its maintenance; (iii) Vehicles with drivers, maintained and operated; (iv) Office equipments, including computers, printers, plain paper copiers; and
ancillary devices; and (v) Survey and laboratory technicians.
6 Documents To Be Provided
57. Detailed Project Report for this project has been prepared by BSRDC and will be provided to the consultant including all related reports for engineering designs; drawings and relevant data as well as the Contract Agreement for the Civil Works Contract.
VII. SAFEGUARDS
1. Involuntary Resettlement 58. Separate resettlement plans (RPs) will be prepared for all the sub projects to mitigate and address all these and associated losses. These plans will be developed based on ADB’s Safeguard Policy Statement (2009), National Rehabilitation and Resettlement Policy (NRRP-2007), Land Acquisition Act 1894 and Bihar Land Acquisition Resettlement and Rehabilitation Policy (BLARRP-2007).Complete details of compensation rates for the loss of land and structures, shifting assistance, and other income restoration assistance are provided in the entitlement matrix of the resettlement plans. Additional support provisions for affected people belonging to vulnerable groups are included in the resettlement plans. Proper consultation during the preparation of the RPs with the project displaced persons including land acquisition and compensation process and to general public through the ADB website will be undertaken. If during detailed design and implementation any modification or additional land requirement or involuntary resettlement impacts are identified, an RP should be prepared or modified in accordance with the applicable laws referred to in the RP. Prior approval of the ADB shall be obtained before any further implementation of the relevant section of the subproject.
59. The Government will (i) implement the Project in accordance with the resettlement plans prepared, ADB’s Safeguard Policy Statement (2009), and applicable national laws and regulations. (ii) in case of any design changes in project roads, ensure that the resettlement plans are updated on the basis of the final alignment and submitted to ADB for review and approval prior to awarding of civil works contracts; and (iii) provide semiannual progress reports on the implementation of the resettlement plans. 60. All displaced people should be paid compensation in accordance with the RPs. The land should be made free of encumbrances and obstructions from the related section required to be handed over to the contractor for and prior to commencement of construction thereof in
26
accordance with the work schedule under the related civil works contract. Efficient grievance redress mechanism is in place in accordance with the related RP to assist affected persons to resolve grievances and complaints if any in a timely manner. 61. The implementation of the resettlement plans will be monitored internally by the EA and the implementation NGO engaged by BSRDC and externally by an independent monitoring expert under the construction supervision consultants who will undertake the overall monitoring of the safeguards and relevant social issues and submit semiannual monitoring reports to ADB. The total cost of resettlement for all the four project roads is estimated at Rs. 3,405.71 million. 62. In case of any adverse impacts identified during planning, design or implementation of the subproject on indigenous people BSRDC will ensure the Indigenous People Plan (IPP) is prepared in accordance with the SPS and the same is further approved by ADB before award of related civil works contract and implemented before commencement of the relevant section of the civil works contract as applicable. Any update of the IPP due to detailed design and implementation shall follow requirements similar to the RPs as described for involuntary resettlement. An indigenous people planning framework has been prepared to mitigate the adverse impacts, if any, on the indigenous people.
2. HIV/AIDS and Human Trafficking
63. To combat HIV/AIDS is one of the UN Millennium Development Goals, which promises to halt spread of HIV/AIDS by 2015.
64. The Government along with NACO and State AIDS Control Society has been successfully carrying out awareness campaigns and free health care to minimize the spread of HIV/AIDS in various parts of the country. The social assessments undertaken have not revealed any significant risks of HIV/AIDS and human trafficking. However, the BSRDC will ensure that all civil works contractors 1) carry out awareness programs for labor on the risks of sexually transmitted diseases/ AIDS and human trafficking, and 2) disseminate information at worksites on the risks of sexually transmitted diseases and HIV/AIDS as part of health and safety measures for those employed during construction. Contracts for all subprojects will include specific clauses on these undertakings, and compliance will be strictly monitored by the BSRDC, with the support of supervision consultants during project implementation. 3. Environmental Assessment 65. Categorization: The Project has been categorized as B under the SPS and all four subprojects are unlikely to have any significant adverse environmental impacts. Impacts, if any, will largely be short-term, reversible and manageable through appropriate mitigation measures. 66. Ensuring Implementation of Environmental Standards: The Government will implement all mitigation measures included in the environmental management plan (EMP) in accordance with the SPS as well as all national and state environmental and natural resource management laws. The EA will continuously consult with concerned district and state environmental committees on the felling of trees along the roadside, and the locations of the construction campsites, hot mix and crushing plants, borrow areas, and disposal and handling of spoiled materials. The EA will incorporate the IEE reports including the EMPs in the bidding documents and civil works contracts, including those that are covered in the retroactive financing, and are updated if necessary, in the course of the Project implementation with prior approval of the ADB. The EA will ensure that the contractors will implement the required
27
mitigation measures as described in the EMP. The EA shall ensure that all necessary clearances, permissions, consents, authorization, and certificates are secured prior to the commencement of civil works and all conditions stipulated are implemented. The EA will promptly mitigate and minimize any adverse impact on the environment that may arise from the Project implementation in accordance with the EMP. The EA will undertake an environmental monitoring plan and submit semiannual reports to ADB and agencies on the implementation of the EMP as part of the progress report on Project implementation. The Government will report to ADB any change in alignment or to project components since the environmental assessment report was approved to allow a consideration on whether additional environmental assessment study is required. 67. Grievance Redress Committee: All grievances and concerns, particularly related to the implementation of the EMP, will be acknowledged, responded, evaluated, and corrective actions taken immediately. All grievances shall be received, assessed, and resolved by the jurisdictional PMU within 30 days of receipt. In case the PMU is unable to resolve the issue, the matter will be forwarded to the Social and Environmental Cell at BSRDC Headquarters for corrective action. All grievances will be recorded, decisions documented, and made accessible to the public. The outcome of the redress shall form part of the quarterly report to ADB. 68. Monitoring and Reporting: The BSRDC will be responsible for monitoring and reporting to ADB on the implementation of environmental mitigation measures described in the IEE/EIA reports. If BSRDC does not have adequate staff to monitor the implementation of the EMPs, it will be possible to outsource laboratory analytical services or obtain additional consultancy services from the Project. The supervision consultants will also monitor and report the implementation of the EMP. The BSRDC will facilitate ADB's environmental monitoring of all subprojects. 69. Quarterly progress review reports submitted by the BSRDC should include the progress of environmental monitoring and highlight any other environmental issues that may have arisen during implementation, and measures taken to address the issues. BSRDC is responsible for ensuring that all environmental assessment documents, including the environmental monitoring reports, are maintained systematically as part of the subproject-specific record.
VIII. GENDER AND SOCIAL DIMENSIONS
1. Gender 70. In Bihar the gender ratio of the population is 921 females for every 1,000 males (2001 census). In depth social and poverty analysis was carried out in the project influence area to assess the local demand for the proposed road investments, employment opportunities, child labor, gender specific capacity to take advantage of the likely socioeconomic opportunities that would result from the project, HIV transmission and or other health and safety risks that would result form the project. Focus group discussions were undertaken with women belonging to different socioeconomic groups in project influence areas. The majority of women work in the home and outside, the majority are consulted by their spouse and other family members prior to any family decision. Improved road conditions will encourage better transport services thereby improving access for women and children to social services, markets, workplaces, higher education, better health facilities and better employment opportunities for men and women.
28
71. Gender participation was ensured during the course of the social study by undertaking a process of gender analysis to assess the impact of the project. Meaningful consultations that are gender inclusive and responsive will be carried out as early as in the project preparation stage and will be carried out on an ongoing basis throughout the project cycle. 72. The BSRDC shall ensure that (i) civil works contractors comply with all applicable labor laws and do not differentiate wages between men and women for work of equal value. The construction supervision consultants will supervise the provisions. 2. Land Acquisition and Resettlement 73. BSRDC shall (i) implement the Project in accordance with the agreed Resettlement Plans (RPs), ADB’s Safeguard Policy Statement (2009), and applicable national laws and regulations; (ii) in case of any design changes in project roads, ensure that the RPs are updated on the basis of the final alignment and submitted to ADB for review and approval prior to awarding of civil works contracts; and (iii) provide semiannual progress reports on the implementation of the RPs. 3. Health 74. The BSRDC will ensure that contractors provide adequately for the health and safety of construction workers and further ensure that bidding documents include measures on how contractors will address this, including an information and awareness raising campaign for construction workers on sexually transmitted diseases, HIV/AIDS, and human trafficking.
4. Labor 75. The BSRDC will ensure that (i) civil works contractors comply with all applicable labor laws and regulations, do not employ child labor for construction and maintenance activities, and provide appropriate facilities for women and children in construction campsites; (ii) people directly affected by the Project are given priority to be employed by the Project; (iii) contractors do not differentiate wages between men and women for work of equal value; and (iv) specific clauses ensuring these will be included in bidding documents. BSRDC shall cooperate with the Labor Department (GOB) to monitor the implementation of this clause. The construction supervision consultants will monitor the implementation.
29
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION
A. Project Design and Monitoring Framework
Design Summary
Performance Targets and Indicators with Baselines
Data Sources and Reporting Mechanisms Assumptions and Risks
Impact Assumptions A more efficient state road transport system supporting sustainable economic growth in Bihar
Road traffic on project roads increases by 90% until 2020 from current level (2009 baseline: between 1,858 vehicles per day on State Highway 81 and 4,276 vehicles per day on State Highway 91). Per capita GDP in the project districts increases to 28% of India’s per capita GDP by 2020 (2007 baseline: 23%).
Post-implementation measurement and traffic survey Government of Bihar’s economic survey
Government development activities are effectively coordinated with road sector investment and the current economic growth rate is maintained.
Risks
Small roadside businesses could lose business opportunities because of increased efficiency and speed of travel of vehicles.
Outcome Assumptions Vehicle travel time on the project roads is reduced because of the improved condition of the roads; travel speed increases to an average of 40 km/h for cars (2009 baseline: 15–25 km/h).
Increased transport efficiency and safety on project roads
Road signage meets the requirements of the road safety audit upon project completion (2009 baseline: road signage is basic).
Post-implementation measurement and traffic survey Post-implementation survey
The project is delivered on time.
The state-allocated maintenance budget remains sufficient for the maintenance of the entire rehabilitated road network.
Strengthened management and monitoring capacity enables the full utilization of funds allocated for maintenance works.
A road asset inventory database is established and project management tools are available and in use.
Output Assumptions 1. Built and
upgraded state highways
About 356 km of state highways are built or upgraded by the end of 2014.
BSRDC/RCD annual report on road assets
Civil works are implemented on schedule.
Qualified civil works contractors and consultants participate in the project.
Procurement and compliance with
Design Summary
Performance Targets and Indicators with Baselines
Data Sources and Reporting Mechanisms Assumptions and Risks
safeguard policies are efficiently and effectively handled, following ADB’s procedures and requirements.
Assumptions 2. Improved
management of road assets and maintenance of project roads by BSRDC
One pilot performance-based maintenance contract is awarded by the end of 2014.
Road asset registry for state highways set up by the end of 2014
BSRDC/RCD annual report on road assets
Qualified consultants participate in the project.
Institutional strengthening is implemented.
Risks
Changes in BSRDC management may impact momentum for reforms.
Activities with Milestones Inputs Loan
ADB: $300,000,000
Item Amount ($ million)
Investment component 255.45
Institutional development component
3.00
Contingencies 31.05
Consulting services (about 2,936 person-months—85 international and 2,851 national)
10.50
Government: $124,000,000
Item Amount ($ million)
Land acquisition, resettlement and rehabilitation, utility shifting
78.93
Investment component 22.80
Project management 3.00
Contingencies 2.77
1. Investment component
1.1 Construction supervision consultants recruited by July 2011
1.2 Procurement for all civil works completed by July 2011
1.3 Construction of all civil works completed by December 2014
2. Institutional development (equipment)
2.1 Equipment procured by the end of 2013
3. Institutional development (technical assistance)
3.1 Consultants recruited by July 2011
3.2 Consulting services completed by July 2012
3.3 BSRDC staff trained by July 2011
4. Post-implementation traffic survey and measurement conducted by the end of 2014
Financing charges during implementation
16.50
ADB = Asian Development Bank, BSRDC = Bihar State Road Development Corporation Limited, GDP = gross domestic product, km = kilometer, RCD = Road Construction Department Source: Asian Development Bank
B. Monitoring
76. Project performance monitoring: BSRDC will, within 3 months of the loan signing, develop a systematic project performance monitoring system, in form and substance acceptable to ADB, for use throughout the life of the Project. 77. BSRDC will establish, within 3 months of loan effectiveness, a baseline for performance indicators to be used for monitoring implementation of each road subproject. It will conduct annual evaluation surveys for each road subproject, in accordance with the project performance monitoring system, to evaluate the scope, implementation arrangements, progress, and achievement of the project objectives. 78. Compliance monitoring: Compliance with covenants will be monitored through ADB's project administration missions – including project inception mission to discuss and confirm the timetable for compliance with the loan covenants; project review missions to review the borrower's compliance with particular loan covenants and, where there is any noncompliance or delay, discuss proposed remedial measures with the Government; and mid-term review mission if necessary to review covenants to assess whether they are still relevant or need to be changed, or waived due to changing circumstances. 79. Safeguards monitoring: Compliance with safeguard requirements will be monitored by the supervision consultant, who is supervised by BSRDC. BSRDC shall ensure compliance with the Government's rules and regulations, documents agreed upon with ADB such as EMPs and RPs. Compliance of the project with these documents will be reviewed by ADB review missions.
C. Evaluation
80. Within 6 months of physical completion of the Project, BSRDC will submit a project completion report to ADB.8 Review missions from ADB will be fielded at regular intervals, usually at least once a year, to review the physical progress of project implementation and implementation of the agreed RPs and EMPs.
D. Reporting
81. BSRDC 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 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 EA‘s AFSs, together with the associated auditor's report, should be adequately reviewed.
E. Stakeholder Communication Strategy
82. The safeguard documents i.e., resettlement framework, resettlement plans, indigenous people framework, indigenous peoples plan (if any) are posted on the ADB's website. BSRDC will provide relevant information, including information from the above documents in a timely
8 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-
Sector-Landscape.rar
manner, in an accessible place and in a form and languages understandable to the displaced people and other stakeholders. If the displaced people are illiterate other appropriate communication methods will have to be used. 83. BSRDC will also establish a mechanism to receive and facilitate resolution of the displaced persons, communities, concerns, complaints and grievances. The grievance mechanism will be scaled to the impacts of the project. It should address complaints and concerns promptly, using an understandable and transparent process that is culturally appropriate, gender responsive and accessible to the displaced people and communities at no cost and without retribution. The displaced persons and communities will be appropriately informed about the mechanism.
X. ANTICORRUPTION POLICY
84. The Government, States and BSRDC are advised of ADB’s Anticorruption Policy (1998, as amended to date). Consistent with its commitment to good governance, accountability and transparency, implementation of the Project shall adhere to ADB’s Anticorruption Policy. ADB reserves the right to review and examine, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Project. In this regard, investigation of Government officials, if any, would be requested by ADB to be undertaken by the Government. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the Loan Regulations and the bidding documents. In particular, all contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the Project Executing Agency and all contractors, suppliers, consultants, and other service providers as they relate to the Project.
XI. ACCOUNTABILITY MECHANISM
85. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.9
XII. RECORD OF PAM CHANGES
86. 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.
9 For further information see: http://compliance.adb.org/.
Appendix 1
1
LIST OF PROJECT ROADS AND SUMMARY OF DESIGN STANDARDS
Table A1: List of Project Roads
State Highway Project Road
Length (kilometer)
78 Bihta – Sarmera 100 81 Sakkadi - Nasrigunj 85 90 Mohammadpur - Chapra 69 91 Birpur - Udakishunganj 102 Total 356
Source: Bihar State Road Development Corporation Limited
The design standards and general design considerations for subprojects include the following:
(i) The design criteria adopted are in accordance with the applicable Indian Roads Congress/Ministry of Shipping, Road Transport and Highways codes and standards for the design and construction of roads and bridges.
(ii) The roads will be constructed with two-lane (7.0 meters) carriageway width and the overall formation width of the highway will be 10–12 meters. Where existing single and intermediate lane carriageways exist, they will be rehabilitated and widened to two-lane carriageway width. In built-up and urban areas, the widening will be accommodated within the existing right-of -way as far as possible.
(iii) Proper cross-drainage structures will be provided, wherever necessary, to ensure all weather connectivity.
(iv) The overall width of culverts and new bridges will be 12 meters.
(v) Adequate road safety features will be provided in accordance with the requirements of Indian Roads Congress/Ministry of Shipping, Road Transport and Highways standards.
(vi) Bituminous pavement will be provided, except through built-up and urban areas, where concrete pavement will be provided.
Appendix 2
1
Consultant's Terms of Reference
87. The following Terms of Reference apply for the Consultants to be recruited for the implementation of the capacity development technical assistance (CDTA). The Terms of Reference for the Supervision Consultants to be recruited by Bihar State Road Development Corporation Limited (BSRDC) are listed in Chapter VI, Section D of this PAM.
A. Introduction 88. The main objective of the consulting services is to support the Government of Bihar (GOB) in improving sector management performance by implementing institutional development initiatives. The focus of the technical assistance (TA) is to assist and support the recently established BSRDC in (i) implementing ongoing and future road project more efficient and (ii) in preparing for the future operation and maintenance of the improved roads by performance based maintenance contracts. The consultants will conduct district and state wide training and workshops as required. B. Improving Sector Management Performance 89. The consultants will undertake the services in close consultation with the managing director of BSRDC. They will conduct state and district training and workshops as required. BSRDC-wide consultation will be conducted to disseminate the concepts of the sector development initiative. 90. The consultant will be expected to undertake the following tasks:
(i) Recommend an appropriate institutional structure for managing the overall state road network, including state highways and major district roads, with focus on the upcoming operations and maintenance period.
(ii) Recommend appropriate management structures for managing each layer of the road network.
(iii) Explore options to raise revenues for road maintenance funding e.g. from road access charges and vehicle registration fees or PPP/BOT structures aiming at operation and maintenance of roads; the consultant shall estimate possible revenues based on different scenarios in the development of Bihar, discuss advantages and disadvantages of each option, risks, lessons learned from implemented under similar conditions etc.
(iv) Review the drafted road maintenance policy and provide advice on the implementation of the policy related to management structure, organization of management, equipment required, staff requirement and development, etc.
(v) Support the implementation of the new business procedures, and provide training to BSRDC staff to enable restructuring and adoption of a new institutional and management structure.
(vi) Support the network-wide roll-out of the recently established asset management system and provide training to all levels of staff in the efficient use of the system. Augment data collection in addition to the pilot implementation.
(vii) Review rules, regulation and maintenance procedures for compatibility with the road asset registry and the new maintenance policy.
(viii) Develop procedures for monitoring of Progress (Physical and Financial), Progress of Works and for planning preventive maintenance.
Appendix 2
2
(ix) Support BSRDC in implementing and monitoring of safeguard requirements during project implementation.
(x) Support the resettlement and environmental cell in BSRDC to support project design, implementation and monitoring during operation and maintenance.
(xi) Advise on road safety during design, construction and maintenance, carry out trainings at all levels of BSRDC staff on road safety.
C. Performance based maintenance contracting 91. The main objective of performance-based contracting for the Management and Maintenance of Roads is to increase the efficiency and effectiveness of road maintenance operations. It should ensure that the physical condition of the roads under contract is adequate for the need of road users, over the entire period of the contract which is normally several years. This type of contract significantly expands the role of the private sector, from the simple execution of works to the management and conservation of road assets. 92. One fundamental feature of the performance-based contract is that the Contractor is responsible for designing, scheduling and carrying out the actions he believes are necessary in order to comply with the service quality levels stated in the contract. The service quality levels are defined from a road user’s perspective and may include factors such as average travel speeds, riding comfort, safety features, etc. However, this requires higher capacity of the contractor to execute the contracts. This capacity is not yet available in the road sector in Bihar, thus the sector needs to be strengthened. In addition, the EA has to be strengthened for the role and duties under the performance based contracting system. This includes the requirement to supervise works and check on the achievement of the specified criteria. The consultant, in cooperation with BSRDC, will define the adequate service level for each road to be included in performance based maintenance contracts. 93. Given the nature of the performance based maintenance contracts, the capacity of contractors must go beyond the mere execution of works and include the capacity to design and plan the required actions and interventions in order to maintain the contractually agreed service levels. The consultant will carry out a brief assessment of the private-sector entrepreneurs active in Bihar and neighboring states, in order to evaluate their technical, managerial and financial capacity. This shall not be limited to works contractors, but also include other firms which may have the technical, financial and management capacity to carry out the contracts, with the use of subcontractors to carry out physical works. The purpose of this task is (i) to identify needs for the sector development and the extend performance based contracts can be introduced immediately and over time, (ii) to get an idea of the potential bidders and their capacity, (iii) to have a basis for defining pre-qualification criteria for bidders, (iv) to identify weaknesses of likely bidders and ways to mitigate risks linked to those weaknesses. Based on the individual conditions and contracts to be prepared, the consultant will propose the most adequate supervision arrangements and an action plan to strengthen the potential contractors in the civil works sector in Bihar by adequate contract sizes, provision of equipment to be leased to the contractors and other measures. D. Collection of Baseline Data 94. The consultants will collect baseline data to monitor the achievement of results in the results monitoring framework of the project. The consultant shall carry out necessary surveys and record the methodology of data collection to ensure that data collection after completion of the project can be based on the same approach. Data collected shall include, but not be limited
Appendix 2
3
to the following: number of vehicles using the road, average speed travelled, origin and destination of trips, status of road signage as well as data related to the impact of the project roads on wayside businesses, access to schools, healthcare, markets, employment, etc. E. Design Standards for Flood Affected Areas 95. The consultants will review the existing design standards for state highways considering special requirements in flood affected areas in north Bihar. The consultant shall recommend revisions to design standards related to the geometrical alignment and road cross-sections, construction material specifications, design parameter for embankments, culverts, bridges, road drainage, cross-drainage, etc. F. Reporting 96. The consultants will provide ADB with progress reports on the institutional strengthening action plan, including achievements, problems, and policy recommendations. They will prepare specific reports in accordance with the terms of reference. Upon completion of their services, the consultants will prepare a draft final report covering all tasks and a final report 30 days after the tripartite review meeting with BSRDC, ADB, and the consultants. 97. The consultants will prepare a training program in consultation with BSRDC and comprehensive training proposals in the areas specified in this terms of reference, including selection criteria for candidates, training objectives, cost estimates. G. Staffing 98. The TA will be implemented from March 2011 to December 2011. International consulting inputs include (i) road design and maintenance specialist as team leader (8 person-months), (ii) institutional management specialist (4 person-months), (iii) policy and financial project management specialist (4 person-months), (iv) legal adviser (3 person-months), (v) resettlement and environmental project implementation specialist (6 person-months), (vi) road maintenance and quality control specialist (4 person-months), and (vii) road safety specialist (3 person-months).
