Papua New Guinea: Maritime and Waterways Safety Project · PNG Climate Change Vulnerability...

Project Number: 44375 Loan Number: LXXXX November 2012

Papua New Guinea: Maritime and Waterways Safety Project

Project Administration Manual

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Contents ABBREVIATIONS iv

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 3 A. Project Readiness Activities 3 B. Overall Project Implementation Plan 9

III. PROJECT MANAGEMENT ARRANGEMENTS 12 A. Project Implementation Organizations – Roles and Responsibilities 12 B. Key Persons Involved in Implementation 12 C. Project Organization Structure 13 D. Navaids Subproject Selection Criteria 13 E. Navaids to be Replaced 14 F. Navaids to be Installed 18 G. Automatic Identification System 20 H. Tide Gauges 20 I. Hydrographic Survey 20

IV. COSTS AND FINANCING 22 A. Detailed Cost Estimates by Expenditure Category 23 B. Allocation and Withdrawal of Loan Proceeds 24 C. Detailed Cost Estimates by Financier 25 D. Detailed Cost Estimates by Outputs 26 E. Detailed Cost Estimates by Year 27 F. Contract and Disbursement S-curve 28 G. Fund Flow Diagram 29

V. FINANCIAL MANAGEMENT 30 A. Financial Management Assessment 30 B. Disbursement 30 C. Accounting 31 D. Auditing 31

VI. PROCUREMENT AND CONSULTING SERVICES 32 A. Advance Contracting and Retroactive Financing 32 B. Procurement of Goods, Works and Consulting Services 32 C. Procurement Plan 33 D. Indicative List of Packages Required Under the Project 36 E. Consultant's Terms of Reference 36

VII. SAFEGUARDS 45

VIII. GENDER AND SOCIAL DIMENSIONS 49

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 52 A. Project Design and Monitoring Framework 52 B. Monitoring 55 C. Evaluation 56 D. Reporting 57 E. Stakeholder Communication Strategy 57

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X. ANTICORRUPTION POLICY 59 A. Anticorruption Measures 59

XI. ACCOUNTABILITY MECHANISM 60

XII. RECORD OF PAM CHANGES 61

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 Department of Transport and National Maritime Safety Authority are 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 the Department of Transport and National Maritime Safety Authority 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 recommendation 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.

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ABBREVIATIONS

ADB = Asian Development Bank AIS = automatic identification system CEMP = contractor environmental management plan CWTP = Community Water Transport Project DEC = Department of Environment and Conservation EA = executing agency EARF = environmental assessment and review framework EMP = environmental management plan ENC = electronic navigational charts GAP = gender action plan GM = General Manager ICB = international competitive bidding IEE = initial environmental examination JV = joint venture LRIT = long-range identification and tracking MOA = Memoranda of Agreement navaid = navigational aids NCB = national competitive bidding NMSA = National Maritime Safety Authority PCR = project completion report PIU = project implementation unit PNG = Papua New Guinea PSC = project steering committee QCBS = quality- and cost based selection RF = resettlement framework RP = resettlement plan SPS = Safeguard Policy Statement WIMA = Women in Maritime Association

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I. PROJECT DESCRIPTION

1. The Maritime and Waterways Safety Project (the Project) will improve the safety and efficiency of international and national shipping in coastal areas and waterways in Papua New Guinea (PNG) by replacing, installing and maintaining navigational aids (navaids),1

improving maritime safety information infrastructure, improving maritime safety practice of communities, and providing efficient project management and capacity development.

2. Impact and Outcome. The impact will be safer and enhanced access to socioeconomic opportunities for communities in PNG and regional and international stakeholders. The project is expected to produce benefits for rural and remote populations as well as the national and international populations. The outcome will be an environment for safe and economic shipping routes provided by NMSA. 3. Outputs include (i) replaced, installed and maintained navaids; (ii) improved safety information infrastructure; (iii) improved maritime safety practice of communities; and (iv) efficient project management and capacity development. 4. Output 1: Replaced, installed and maintained navaids. NMSA will replace 99 existing navaids and install 33 additional navaids. These are outlined in NMSA’s work plan with site selection criteria.2 To determine priorities, the plan uses engineering aspects, including relationships with PNG’s existing navaids network, ship traffic density, and environmental conditions. The proposed project will conduct a feasibility study that includes investigation of the navaids’ local environment and due diligence assessments. Where a need is identified, engineering design will incorporate measures for adapting to climate change impacts to ensure sustainable maintenance.3 The project will help NMSA establish a sustainable maintenance scheme and conduct periodic maintenance of replaced and installed navaids based on the scheme. Communities will participate in a community engagement program to monitor and secure good condition of navaids based on the practice of the previous ADB project.4

5. Output 2: Improved safety information infrastructure. NMSA will contract out a large scale hydrographic survey and provide survey data to the Australian Hydrographic Service5 to produce nautical charts and electronic navigational charts (ENCs) for seven ports and recompile existing PNG navigational chart portfolios.6 NMSA will also extend the automatic identification system (AIS) network by installing AIS transponders and base stations in at least five sites and relocating three existing stations. The project will confirm details and configuration of each site prior to commencement of works. Tide gauges will also be installed in four major ports to measure changes in the sea level and contribute to the growing database of climate change and sea level rise information.7

NMSA will conduct maintenance of installed AIS transponders and tide gauges based on a sustainable maintenance scheme to be developed.

1 Includes hazard markers and channel markers. 2 Project Administration Manual (accessible from the list of linked documents in Appendix 2). 3 ADB. 2012. PNG Climate Change Vulnerability Assessment of Navigational Infrastructure. Manila. 4 ADB. 2000. Report and Recommendation of the President to the Board of Directors: Proposed Loan to Papua New

Guinea for the Rehabilitation of the Maritime Navigation Aids System Project. Manila. 5 NMSA and Australian Hydrographic Service have a partnership to produce navigational charts. 6 Kulili Harbor; Schlangen Harbor, Wasu; Bugoiya Harbor, Misima Island; Panabwal Group; Deboyne Islands;

Yanaba Island, Egum Atoll; and Dawson Strait. 7 Three tide gauges were installed in Port Moresby, Alotau, and Lae by June 2012. Proposed additional sites are in

Daru in Western Province, Madang, Buka in Bougainville Islands, and Manus Islands.

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6. Output 3: Improved maritime safety practice of communities. NMSA will provide maritime safety awareness activities for the public and in targeted rural and remote communities to change people’s perceptions of maritime safety and improve small craft safety practices. The activities will include a well-planned media campaign and production of high-quality information materials aimed at different audiences (e.g., children and adults). Small craft safety training activities and materials for women will be designed with advice from the NMSA Women in Maritime Association. 7. Output 4: Efficient project management and capacity development. The project will help NMSA establish a project implementation unit (PIU) to implement and manage all activities funded by the project. The PIU will be staffed by NMSA personnel and new recruits if necessary and supplemented by consultants to support the PIU and to provide required expertise to produce outputs described above. The project will also undertake a range of capacity development initiatives for the personnel through coaching and on-the-job training, such as operating new safety and hydrographic information infrastructure in NMSA.

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II. IMPLEMENTATION PLANS

A. Project Readiness Activities

8. The Project will mobilize international consultants and support day-to-day management of the Project under the direction and guidance from NMSA, which has some capacity to implement and administer the Project but has no experience in ADB funded projects.

a. Project Implementation Unit

9. The Project will establish one PIU under NMSA. PIU will be coordinated and harmonized by the NMSA as executing agency (EA). Also, consultants engaged to support in the PIUs will provide a team that will match counterparts from NMSA to ensure that in-house capacity built up over the Project remains within NMSA after Project completion, this contributes to longer-term institutional development of NMSA. The PIU members will closely work together through a consultant team leader (Marine Civil Engineer) in NMSA.

b. Counterpart Staff

10. NMSA will appoint those staff for PIU head positions, a Project Manager position in NMSA for the day-to-day management of the Project, supported by the international consultants, and NMSA’s technical, financial and administrative staff. The General Manager (GM) of NMSA will provide the Project Manager with direction and guidance, respectively. 11. In addition to the head position, various positions described in Table 1 are required to implement the Project. NMSA require appointing existing staff or recruiting staff to the positions prior to the commencement of the Project. The counterpart staff will work with international consultants mentioned in Section VI.E. The following sections describe these positions’ terms of reference.

Table 1: List of Government Agencies’ Inputs

NMSA Staff Person-Months

Project Manager/Navaids Engineer 60.0 Economist 30.0 Environment Officer 60.0 Community and Lands Coordinators (60*2) 120.0 Procurement Officer 60.0 Hydrographer 30.0 Communication/Media Expert 4.5 Project Accountant 60.0 Administrative Assistant 60.0 Total 484.5

12. Project Manager/Navaids Engineer (60 person-months).

(i) Take overall responsibility for project management and administration including programming, administering, and coordinating daily project activities, liaising with governmental and external agencies, convening and administering stakeholder and steering committee meetings.

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(ii) Support the Marine Civil Engineer to implement and monitor international and national contracts for civil works, franchise shipping, maintenance and consulting services under the project.

(iii) Oversee reporting and monitoring of project performance including preparation of monthly and quarterly project progress reports.

(iv) Ensure coordination with related activities being undertaken by government and non-government agencies such as livelihoods projects that will promote demand for transport services.

(v) Assist in conducting the tender process for all contracts for civil works, equipment, and consulting services under the Project.

(vi) Provide opportunities through the Project for on-the-job training of NMSA staff in procedures, documentation, and systems developed under the project and related activities.

(vii) Assist the Marine Civil Engineer in the preparation of technical documentation. (viii) Carry out field inspections to ensure that engineering designs are adequately

implemented. (ix) Provide input into bid documents. (x) Assist with any design changes during project implementation. (xi) Support the Marine Civil Engineer to supervise contractors’ works including

carrying out periodic performance audits to ensure quality control and core labor standards are met.

(xii) Support the Marine Civil Engineer reviewing and approving the contractor’s installation methodology and work plans.

(xiii) Review and approve with the Marine Civil Engineer the contractor’s progress claims and certify them for payment.

(xiv) If required, provide support to the Environment Officer in reviewing contractor environmental management plans (CEMPs), carrying out regular audits and monitoring, and as required providing technical advice to the PIU on ensuring compliance with environmental assurances under the project.

(xv) Review contractual issues including contract variations and seek approval from appropriate authorities.

13. Economist (30 person-months)

(i) Identify and collect data associated with project costs and benefits based on the economic analysis developed by a project preparatory technical assistance (PPTA).8

(ii) Assist an international Economist in conduct economic analysis.

(iii) Calculate economic rates of return for selected sets of navaid sites and for the overall project including appropriate sensitivity and risk analysis under supervision of an international Economist.

(iv) Liaise with other specialists to provide an integrated feasibility study report(s). 14. Environment Officer (60 person-months)

(i) Collect data related to NMSA’s environmental practices and standards if any. (ii) Assist the Environment Specialist in conducting baseline data collection for sites

and navaid locations as part of engineering surveys.

8 ADB. 2011. Technical Assistance to Papua New Guinea for Maritime and Waterways Safety Project. Manila (TA

7869).

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(iii) Assist the engineer integrate mitigation measures presented in initial environmental examinations (IEEs) into bidding documents and ensure provisions are made for contractors to include their approach/costs for mitigations in their bidding documents.

(iv) Advise bid evaluation teams on ability of contractor proposals to achieve mitigation measures identified in the bidding documents.

(v) Provide guidance to contractors after being awarded contracts to prepare CEMPs that include implementation, monitoring, and reporting of their mitigation measures. With Environment Specialist review and approve CEMPs submitted by contractors.

(vi) Work with the Environment Specialist to develop checklists and conduct site visit spot-checks of contractors’ mitigations and review contractors’ regular monitoring reports.

(vii) With the Community and Lands Coordinators undertake consultations and community meetings as required by the consultation strategy.

(viii) Provide to the capacity building of NMSA in respect of community participation and consultation.

(ix) Liaise with the Community and Lands Coordinators to develop an efficient monitoring plan and information exchange.

(x) Monitor compliance with CEMPs, as necessary, and ensure compliance with environmental assurance under the project.

(xi) Report monitoring results to the Project Manager/Navaids Engineer and Marine Civil Engineer and assist in compilation of monitoring reports and results in quarterly progress reports to be submitted to ADB.

15. Community and Lands Coordinators (60 person-months*2)

(i) Collect data related to NMSA’s social safeguards practices and standards if any. (ii) Assist the Gender, Community and Lands Specialist in conducting feasibility

assessments, including baseline data collection, detailed feasibility studies, social impact assessment and gender analysis.

(iii) Assist the Gender, Community and Lands Specialist in carrying out necessary work for any land acquisition and leases for temporary use of land and preparation and implementation of resettlement plans (RPs), if needed, following the Resettlement Framework (RF) in compliance with ADB requirements.

(iv) Assist in initial and ongoing public consultations for subproject feasibility assessment, Memoranda of Agreement (MOA) signing, and implementation of civil works.

(v) Assist in preparing community participation plans for each subproject and reporting feedback as part of each subproject assessment and progress report.

(vi) Ensure that the activities and targets described in Gender Action Plan (GAP) are integrated in project activities and targets.

(vii) Monitor and report on implementation of GAP. (viii) Carry out gender awareness training for all project consultants and staff to

ensure that they understand their roles in promoting and ensuring gender equality in the delivery of project activities.

(ix) Carry out training on HIV/AIDS and STIs in target communities, holding separate sessions for men and women, as well as for civil works contractor workers.

(x) Carry out safety awareness training with support from the NMSA.

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(xi) Prepare and submit to the PIU reports detailing dates, scope of work undertaken, gender disaggregated lists of participants, and a discussion of issues on the completion of each activity.

(xii) Advise on the integration of socioeconomic mitigation and facilitation measures into tender documents and ensure provisions are made for contractors to include their mitigation approach and costs in proposals/bids.

(xiii) Provide assistance to contractors to implement, monitor and report on mitigation plans

(xiv) Monitor compliance with socioeconomic management plans and ensure compliance with socioeconomic assurances under the project by using checklists and questionnaire to be developed by the Gender, Community and Lands Specialist.

(xv) Report monitoring results to the Gender, Community and Lands Specialist. (xvi) Assist the Maritime Safety Specialist in ensuring small craft safety programs

adequately address gender issues. (xvii) Facilitate participation of Government counterparts in ongoing capacity

development activities to ensure skills transfer for improved sustainability of designs.

16. Procurement Officer (60 person-months)

(i) Provide support to the Procurement Specialist to organize and oversee tendering processes for international and national contracts for civil works and consulting services under the Project.

(ii) Assist in evaluating bid proposals and make recommendations for contract awards.

(iii) Assist in the drafting of contract documents. (iv) Build the capacity of PIU staff through on-the-job training and establishment of

standard procedures in order to ensure the sustainability project components after the project concludes.

17. Hydrographer (30 person-months)

(i) Provide support to the Hydrographic Specialist to facilitate hydrographic survey under the Project.

(ii) Support the Procurement Specialist and Hydrographic Specialist for preparing bid documents and evaluating submitted bids.

(iii) Assist the Hydrographic Specialist in reviewing the quality assurance and quality control manual prepared by the awarded survey agency prior to commencement of its services.

(iv) Facilitate check-up of vessels, equipment, and personnel deployed for the survey whether they are fully complied with international and national obligation.

(v) Assist in developing procedures for collection and stowage of data from field parties on daily basis.

(vi) Collect data sets and deliverables of surveys and consult with the Hydrographic Specialist to ensure quality.

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18. Communication/Media Expert (4.5 person-months)

(i) Assist international Communication/Media Expert in develop an effective advertisement strategy for maritime safety awareness and develop a detailed advertisement plan.

(ii) Facilitate coordination with national media to announce future safety awareness events and advertise the importance of safe shipping using various media.

(iii) Lead preparation of safety awareness workshops, collect materials, and report the workshops via media.

(iv) Support documentation of the advertisement strategy and plan, and coordination approach to national media.

(v) Undertake any other related duties as required under the Project. 19. Accountant (60 person-months)

(i) Establish and administer a financial management system for the project in accordance with the relevant ADB guidelines concerning administration of disbursements, and arrangement of direct payments to contractors.

(ii) Provide the necessary accounting services to ensure effective project administration.

(iii) Manage and facilitate the timely disbursement of project funds in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time).

(iv) Prepare project accounts for annual audits. 20. Administrative Assistant (60 person-months)

(i) Provide administrative and clerical support to the PIU. (ii) Assist the Accountant in processing contractual claims. (iii) Maintain files and records in accordance with an appropriate quality management

system. (iv) Provide support for arrangement logistics and travel for project consultants. (v) Provide support for organizing meetings and workshops organized under the

Project.

c. Project Steering Committee

21. EA will form and chair a project steering committee (PSC) to: (i) oversee and monitor project implementation, including policy and coordination, technical design and tendering, progress reports, and audited accounts; and (ii) provide policy and implementation guidance to the NMSA GM.

d. Summary

22. The project readiness activities for consultant selection processes for PIU under advance contracting action will commence in October 2012 for completion by February 2013 to enable project implementation commence from April 2013. The project readiness activities are summarized in Table 2.

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Table 2: Summary of Project Readiness Activities 2012 2013 Indicative Activities

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Who responsible

Advance contracting actions √ Government

and ADB Establish project implementation arrangements

• Recruitment commencement √ Government9

• Recruitment completion

√ Government ADB Board approval √ ADB Loan signing

√ Government and ADB

Government legal opinion provided √ Government

Government budget inclusion √ Government Loan effectiveness √ ADB

ADB = Asian Development Bank.

9 ADB will assist the government by putting out a Consultant Selection Recruitment Notice on its Consultant

Management System.

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B. Overall Project Implementation Plan

Activities 2013 2014 2015 2016 2017 2018 2019

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

A. DMF

1. Improved and maintained navaids

1.1 Conduct public consultation and survey to check status of navaids

1.2 Develop and improvement and maintenance plan

1.3 Prepare bid documents including detailed engineering design

1.4 Contract navaids civil works

1.5 Conduct civil works

1.6 Establish environment for community engagement program

1.7 Carry out community engagement program and land acquisition activities

2. Improved safety information infrastructure

2.1 Review NMSA’s infrastructure installation plan

2.2 Review current coverage of hydrographic charts and identify areas to be widened

2.3 Prepare bid documents of information system procurement

2.4 Prepare bid documents of hydrographic survey

2.5 Contact AIS and tide gauges installation work and maintenance

2.6 Contract hydrographic survey

2.7 Installation work of information system

2.8 Hydrographic survey

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Activities 2013 2014 2015 2016 2017 2018 2019

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 3. Improved maritime safety practice of

communities

3.1 Design water safety training programs and schedule, seeking feedback from relevant stakeholders

3.2 Develop water safety information and awareness raising materials

3.3 Conduct safety awareness and training activities on maritime safety in target communities

4. Efficient project management and capacity

development provided

4.1 Establish PIUs

4.2 Generate a work plan

4.3 Establish monitoring and evaluation system and monitor project performance indicators

4.4 Conduct a training needs assessment and develop a training program for NMSA staff

4.5 Provide training programs for NMSA staff

4.6 Evaluate training outcome and improve training programs

4.7 Provide improved training programs

B. Management Activities

Procurement plan key activities to procure contract packages

Consultant selection procedures

Environment management plan key activities

Gender action plan key activities

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Activities 2013 2014 2015 2016 2017 2018 2019

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Communication strategy key activities

Inception Mission

Annual/Mid-term review

Quarterly progress report

Project completion report

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

Project implementation organizations

Management Roles and Responsibilities

• Department of Treasury

Sign and oversee the implementation of the Loan Agreement; Endorse to ADB staff authorized to approve withdrawal applications processing; and

Request ADB to reallocate or cancel loan proceeds, if required.

• Department of National Planning and Monitoring

Allocate, release, and monitor the use of counterpart funds;

Oversee the implementation of the Loan Agreement; and

Coordinate the project implementation among government agencies.

• Executing agency (National Maritime Safety Authority)

Oversee implementation and performance of the Project;

Liaise with ADB; Establish a project implementation unit; and Form and chair a project steering committee.

• Project implementation unit

Responsible for Project design and day-to-day implementation, financial management, monitoring and evaluation, and reporting.

• Project Steering Committee

Oversee, monitor, and provide its guidance on project implementation, including policy and coordination, and technical aspects. .

• ADB Act as a financier of a loan through Asian Development Fund and partial administrator of the project.

B. Key Persons Involved in Implementation

Executing Agency National Maritime Safety Authority

Chris Rupen General Manager +675 321 1244 [email protected] Level 2, Pacific MMI Insurance Building P.O. Box 668, Port Moresby, National Capital District Papua New Guinea

ADB Transport, Energy and Natural Resources Division

Robert Guild Director +63 2 632 6109 [email protected]

mailto:[email protected]�


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Mission Leader Daisuke Mizusawa Infrastructure Specialist +63 2 632 6160 [email protected]

C. Project Organization Structure

Papua New Guinea Government

NMSA Board

General Manager

Executive Manager Maritime Operations

Executive Manager Corporate Services

NMSA Accountant

International Consultants NMSA Staff

Project Steering Committee

NMSA Project Manager

Project Implementation Unit (PIU)

D. Navaids Subproject Selection Criteria

23. The navaid priority levels have been determined by NMSA. The priority process has been completed with the assistance of ArcGIS mapping software, Navigational Charts, Ship tracks (AIS/Long-range Identification and Tracking: LRIT) and existing navaids in geographic information system environment. 24. NMSA’s priority levels for navaids are described as follows:

Priority 1: A navaid or a system of navaids considered of vital navigational significance and as such requires primary priority. For example, lighted aids to navigation that are considered essential for marking landfalls, primary routes, channels, waterways, dangers or the protection of the marine environment.

Priority 2: A navaid or a system of navaids that is considered to be of important navigational significance. For example, it may include any lighted aids to navigation that mark secondary routes and those used to supplement the marking of primary routes.

Priority 3: A navaid or a system of navaids that is considered to be of necessary navigational significance.


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25. NMSA’s criteria to determine the priority for each navaid includes the following:

Ship Traffic density based on AIS/LRIT tracks; General navigation practice and guidelines; Existing navaids network; Environmental Conditions; Configuration of reefs/coastline, Passage Ways/Entrances; Bays/Harbors; Proposed sites within PNG Port Limits & Private Port of Basamuk are categorized as

Priority 3 on basis that places more responsibility on the Port Authority. 26. In addition, the following criteria will be considered to determine eligible sites for the project:

No outstanding past occupancy fee for proposed navaid sites; and No significant expected environmental impact (i.e., less than category A).

E. Navaids to be Replaced

27. The 99 remaining navaids requiring replacement are listed in Table 3 below. The priority of replacement is as noted above. It is noted that Saibai Island (position 90 in Table 3) is under Australia’s jurisdiction and may not be required. This is to be confirmed by NMSA.

Table 3: Navaids to be Replaced

Location Type Chart Latitude Longitude Priority

# Province Site Name

1 WSP Aitape Monopile in water, 2nm Lt

AUS652 2 41.662 -2.69437 S 141 19.64 141.32727 E 3

2 ESP Wewak Monopile in water, 1nm Lt

AUS651 3 33.8 -3.56333 S 143 39.8 143.66333 E 3

3 Madang Panab Island [W]

Monopile in water, 1nm Lt

AUS646 5 10.25 -5.17083 S 145 48.52 145.80872 E 3

4 Madang Beacon [WR] Monopile in water, 1nm Lt

AUS646 5 9.559 -5.15932 S 145 49.35 145.82245 E 3

5 Madang Pommern Bay (E)


AUS645 5 32.314 -5.53857 S 146 8.739 146.14565 E 3

6 Madang Pommern Bay (W)


AUS645 5 32.321 -5.53868 S 146 8.393 146.13988 E 3

7 Oro Wanigela Reef (No 18)


AUS520 9 20.97 -9.3495 S 149 11.47 149.19112 E 2

8 Oro Rainu Reef (17-G)


AUS520 9 20.18 -9.33633 S 149 11.59 149.19312 E 2

9 Oro Rainu Reef ( 16-R)


AUS520 9 20.104 -9.33507 S 149 12.03 149.20057 E 2

10 Oro Rainu Reef (No 15-G)


AUS520 9 19.476 -9.3246 S 149 12.78 149.21292 E 2

11 Oro Rainu Reef (No14-R)


AUS520 9 19.714 -9.32857 S 149 12.94 149.21565 E 2



AUS520 9 18.935 -9.31558 S 149 13.69 149.22818 E 2

13 Oro Rainu Reef (No 12-R)


AUS520 9 18.87 -9.3145 S 149 13.97 149.2329 E 2



AUS520 9 18.134 -9.30223 S 149 13.74 149.22892 E 2



AUS520 9 18.513 -9.30855 S 149 13.84 149.23073 E 2

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AUS520 9 17.798 -9.29663 S 149 13.76 149.22927 E 2



AUS520 9 17.419 -9.29032 S 149 14.2 149.23672 E 2



AUS520 9 17.246 -9.28743 S 149 14.05 149.23418 E 2



AUS520 9 17.054 -9.28423 S 149 14.32 149.23867 E 2



AUS520 9 16.932 -9.2822 S 149 14.17 149.23618 E 2



AUS520 9 15.98 -9.26633 S 149 15.09 149.25143 E 1

22 Oro Rainu Reef No 1


AUS520 9 10.533 -9.17555 S 149 19.48 149.32465 E 2

23 Oro Cape Killerton Monopile in water, 1nm Lt

AUS520 8 37.185 -8.61975 S 148 20.63 148.34375 E 2

24 Oro Beacon West Monopile in water, 1nm Lt

AUS521 8 37.098 -8.6183 S 148 20.76 148.34593 E 2

25 Oro Beacon East Monopile in water, 1nm Lt

AUS521 8 37.109 -8.61848 S 148 20.93 148.34883 E 2

26 Milne Bay Muwo Island Monopile in water, 4nm Lt

AUS 629 10 44.19 -10.7365 S 150 58.85 150.9809 E 3

27 Milne Bay Panaete Is [W] Monopile in water, 5nm Lt

AUS 382 10 42.638 -10.7106 S 152 21.34 152.35567 E 1

28 Milne Bay Panpompom Is North-end [W]


AUS 382 10 45.16 -10.7527 S 152 24.31 152.40523 E 2

29 Milne Bay Panapompom Is South-end [W]


AUS 382 10 45.68 -10.7613 S 152 25.07 152.41775 E 2

30 Milne Bay Losai Islet [W] Monopile in water, 1nm Lt

AUS 382 10 45.161 -10.7527 S 152 26.57 152.44282 E 2

31 Milne Bay Nivani Islet West-end


AUS 382 10 47.293 -10.7882 S 152 23.4 152.38997 E 1

32 Milne Bay Nivani Islet East-end


AUS 382 10 47.293 -10.7882 S 152 23.95 152.39923 E 2

33 Milne Bay Deboyne Lagoon


AUS 382 10 47.424 -10.7904 S 152 26.99 152.44988 E 2

34 Milne Bay Redlick Passage South-end


AUS 382 10 47.102 -10.785 S 152 29.38 152.48965 E 1

35 Milne Bay Redlick Passage South-end [W]


AUS 382 10 47.457 -10.791 S 152 29.38 152.48965 E 1

36 Milne Bay Rara Islet [W] Monopile in water, 1nm Lt

AUS 382 10 49.75 -10.8292 S 152 23.44 152.39073 E 2

37 Milne Bay South Passage [R]


AUS 382 10 51.141 -10.8524 S 152 28.79 152.47983 E 2

38 Milne Bay South Passage Monopile in water, 1nm Lt

AUS 382 10 50.657 -10.8443 S 152 30.13 152.50217 E 2

39 Milne Bay Nibub Pass Monopile in water, 1nm Lt

AUS 382 10 50.236 -10.8373 S 152 26.54 152.44225 E 2

40 Milne Bay Nivani Pass [R] Monopile in water, 1nm Lt

AUS 382 10 49.685 -10.8281 S 152 23.63 152.39378 E 1

41 Milne Bay Kitava Island Monopile in water, 10nm Lt

AUS 384 8 37.571 -8.62618 S 151 18.59 151.3099 E 1

42 Milne Bay Bwagoia Harbour


AUS 512 10 41.422 -10.6904 S 152 50.81 152.84687 E 2

43 Milne Bay Bwagoia Harbour


AUS 512 10 41.277 -10.688 S 152 50.86 152.84768 E 2

44 Central Round Point Entrance West


AUS505 9 51.748 -9.86247 S 147 30.22 147.50362 E 2

16



45 Central Round Point Entrance East


AUS505 9 51.731 -9.86218 S 147 30.41 147.50688 E 2

46 Central Gabagaba 1 Monopile in water, 2nm Lt

AUS505 9 49.569 -9.82615 S 147 27.49 147.4582 E 1


AUS505 9 49.785 -9.82975 S 147 27.65 147.46075 E 1


AUS505 9 49.158 -9.8193 S 147 28.52 147.47528 E 1


AUS505 9 50.185 -9.83642 S 147 30.25 147.50417 E 2


AUS505 9 48.585 -9.80975 S 147 30.22 147.50362 E 2


AUS505 9 46.174 -9.76957 S 147 28.71 147.47853 E 2

52 Central Wolverine Entrance


AUS506 10 5.377 -10.0896 S 147 40.26 147.67095 E 3

53 Central Wolverine Entrance 2


AUS506 10 5.591 -10.0932 S 147 40.03 147.66715 E 1

54 Central McFarlane Harbour - Marshall Lagoon No. 1-R


AUS623 10 6.154 -10.1026 S 148 10.43 148.1738 E 2

55 Central McFarlane Harbour - Marshall Lagoon No. 2-G


AUS623 10 6.095 -10.1016 S 148 10.31 148.17178 E 2



AUS623 10 4.717 -10.0786 S 148 10.51 148.17508 E 2



AUS623 10 5.937 -10.099 S 148 10.34 148.17233 E 2



AUS623 10 4.414 -10.0736 S 148 10.45 148.17408 E 2



AUS623 10 5.764 -10.0961 S 148 10.29 148.17142 E 2



AUS623 10 3.997 -10.0666 S 148 11.09 148.18485 E 2



AUS623 10 5.563 -10.0927 S 148 10.2 148.17005 E 2



AUS623 10 4.94 -10.0823 S 148 10.65 148.17745 E 2

17





AUS623 10 5.167 -10.0861 S 148 10.36 148.17262 E 2



AUS623 10 3.948 -10.0658 S 148 11.27 148.18777 E 2



AUS623 10 5.016 -10.0836 S 148 10.39 148.17317 E 2



AUS623 10 3.796 -10.0633 S 148 11.38 148.1896 E 2



AUS623 10 4.761 -10.0794 S 148 10.36 148.17262 E 2



AUS623 10 3.536 -10.0589 S 148 11.47 148.19123 E 2



AUS623 10 4.316 -10.0719 S 148 10.32 148.17207 E 2



AUS623 10 3.46 -10.0577 S 148 11.56 148.19262 E 2



AUS623 10 3.975 -10.0663 S 148 11 148.18338 E 2



AUS623 10 3.384 -10.0564 S 148 11.58 148.19307 E 2



AUS623 10 3.791 -10.0632 S 148 11.29 148.18823 E 2



AUS623 10 3.314 -10.0552 S 148 11.51 148.19183 E 2

18





AUS623 10 3.433 -10.0572 S 148 11.45 148.19078 E 2

76 Central Aroma Passage 2


AUS506 10 10.506 -10.1751 S 147 59.76 147.99593 E 3



AUS506 10 10.156 -10.1693 S 147 59.85 147.99748 E 2



AUS506 10 10.043 -10.1674 S 147 59.96 147.99932 E 2



AUS506 10 9.902 -10.165 S 147 59.89 147.99822 E 3

80 Central Buruma Point (G)


AUS506 10 8.552 -10.1425 S 148 18.77 148.31283 E 3

81 Central Beacon (R) Monopile in water, 1nm Lt

AUS506 10 8.622 -10.1437 S 148 18.87 148.31447 E 2

82 Central Beacon (B) Monopile in water, 1nm Lt

AUS506 10 8.568 -10.1428 S 148 18.93 148.31557 E 2

83 Central Baibara Island Monopile in water, 1nm Lt

AUS380 10 21.35 -10.3558 S 149 36.23 149.60383 E 3

84 NCD Vahunabada Reef North


AUS621 9 27.396 -9.4566 S 147 8.17 147.13617 E 3

85 NCD Vahunabada Reef South


AUS621 9 27.546 -9.4591 S 147 8.334 147.1389 E 3

86 NCD Padana Nahua Passage


AUS621 9 35.717 -9.59528 S 147 17.06 147.28427 E 1

87 NCD Bootless Inlet1 Monopile in water, 1nm Lt

AUS621 9 29.225 -9.48708 S 147 14.78 147.2464 E 3

88 NCD Bootless Inlet2 Monopile in water, 1nm Lt

AUS621 9 29.187 -9.48645 S 147 14.78 147.2464 E 3

89 NCD Esade Motu Motu


AUS621 9 27.161 -9.45268 S 147 7.149 147.11915 E 3

90 Western Saibai Island Monopile in water, 1nm Lt

AUS840 9 22.429 -9.37382 S 142 36.58 142.60965 E X

91 Bougainville Beacon [G] Monopile in water, 1nm Lt

AUS684 5 27.005 -5.45008 S 154 37.7 154.62833 E 3

92 Bougainville Beacon [R] Monopile in water, 1nm Lt

AUS684 5 26.834 -5.44723 S 154 38.92 154.64865 E 3

93 Bougainville Minan Island [G]


AUS684 5 26.848 -5.44747 S 154 39.09 154.65148 E 3

94 Bougainville Beacon [R] Monopile in water, 1nm Lt

AUS684 5 26.701 -5.44502 S 154 39.37 154.65622 E 3

95 Bougainville Beacon Monopile in water, 1nm Lt

AUS684 5 9.985 -5.16642 S 154 33.36 154.55603 E 2


AUS684 5 8.701 -5.14502 S 154 33.48 154.55792 E 3


AUS684 5 9.14 -5.15233 S 154 33.38 154.5563 E 3


AUS684 5 8.264 -5.13773 S 154 32.5 154.54167 E 3


AUS684 5 8.223 -5.13705 S 154 32.87 154.5479 E 3

ESP = East Sepik Province, NCD = National Capital District, WSP = Western Sepik Province. F. Navaids to be Installed 28. The additional navaids required are as noted in Table 4 below.

19

Table 4: Additional Navaids



1 WNB Nessup Channel pile


Aus 673 5 53.931 -5.89885 S 148 9.063 148.15105 E 1



Aus 673 5 53.272 -5.88787 S 148 8.7 148.145 E 1



Aus 673 5 51 -5.85 S 148 10.2 148.17 E 1

4 WSP Wutung Lighthouse (GRP tower) relocation


Aus 389 2 36.299 -2.60498 S 141 0.11 141.00183 E 2

5 Milne Bay Louisia pile 2 Monopile in water, 1nm Lt

Aus 516 8 33.234 -8.5539 S 151 1.562 151.02603 E 1


Aus 516 8 33.091 -8.55152 S 151 2.261 151.03768 E 1


Aus 516 8 33.087 -8.55145 S 151 2.682 151.0447 E 1

8 ENB Matupit Island light


Aus 680 4 14.8 -4.24667 S 152 10.9 152.18167 E 1

9 NCD Kila Front light Monopile in water, 18nm Lt

Aus 621 9 29.941 -9.49902 S 147 11.11 147.18522 E 1

10 Madang Madang Port Monopile in water, 1nm Lt

Aus 646 5 12.425 -5.20708 S 145 48.61 145.81017 E 3


Aus 646 5 12.3 -5.205 S 145 48.24 145.804 E 3


Aus 646 5 12.33 -5.2055 S 145 48.03 145.8005 E 3


Aus 646 5 12.4 -5.20667 S 145 48.9 145.815 E 3


Aus 646 5 12.685 -5.21142 S 145 48.05 145.8008 E 3

15 ENB Rabaul Harbour approach


Aus 680 4 17.4 -4.29 S 152 12.8 152.21333 E 3

16 ENB Rabaul Harbour approach


Aus 680 4 15.79 -4.26317 S 152 10.44 152.174 E 2

17 Oro Star Reef Passage


Aus 520, Aus 519

8 38.2 -8.63667 S 149 48.5 149.80833 E 2



Aus 520, Aus 519

8 38.2 -8.63667 S 149 51.1 149.85167 E 1



Aus 520, Aus 519

8 32.4 -8.54 S 149 48.5 149.80833 E 1



Aus 520, Aus 519

8 27 -8.45 S 149 45.5 149.75833 E 1



Aus 520, Aus 519

8 18.2 -8.30333 S 149 38.5 149.64167 E 1



Aus 520, Aus 519

8 20.8 -8.34667 S 149 41.8 149.69667 E 1

23 Milne Bay China Straits Monopile in water, 6nm Lt

Aus 625 10 37.9 -10.6317 S 150 34.4 150.57333 E 1


Aus 625 10 38 -10.6333 S 150 35.2 150.58667 E 1


Aus 625 10 36.3 -10.605 S 150 37.5 150.625 E 1


Aus 625 10 33.4 -10.5567 S 150 38.8 150.64667 E 1


Aus 625 10 33 -10.55 S 150 42.6 150.71 E 1

28 Milne Bay Jomard Entrance


Aus 509 11 15.726 -11.2621 S 152 4.973 152.08288 E 1

20





Aus 509 11 13.935 -11.2323 S 152 10.19 152.16982 E 1



Aus 509 11 11.28 -11.188 S 152 4.351 152.07252 E 1



Aus 509 11 15.969 -11.2662 S 152 11.04 152.18398 E 1

32 NCD Liljeblad Passage


Aus 505 9 27.136 -9.45227 S 146 59.6 146.9933 E 1

33 NCD Liljeblad Passage


Aus 505 9 27.477 -9.45795 S 146 59.37 146.98942 E 1

ENB = East New Britain, NCD = National Capital District, WNB = West New Britain, WSP = Western Sepik Province. G. Automatic Identification System 29. The new sites are:

• Mt. Albowagi – Wewak, East Sepik Province; • Mt. Favenc – Gulf Province; • Mt. Tatarabung – New Ireland Province; • Mt. Horeatoa – Central Province; and • Mt. Sakail – Kimbe, West New Britain Province.

30. Relocations to better sites are considered for stations in:

• Alotau, Milne Bay Province: from VHF Hut to Mt. Dimodimo; • Lae, Morobe Province: from Mt. Lunaman to Mt. Mission; and • Port Moresby, National Capital District: from Paga Hill to Burns Peak.

H. Tide Gauges 31. Three tide gauges were installed in Port Moresby, Alotau, and Lae by June 2012. Proposed additional sites are in Daru in Western Province, Madang, Buka in Bougainville Islands, and Manus Islands. I. Hydrographic Survey 32. Hydrographic survey will be conducted in seven ports as shown in Table 5.

Table 5: Ports for Hydrographic Survey

S. No. Location

Latitude (S) Longitude (E) Reason for

survey

Affected Chart

No. From To From To 1 Kulili Harbor 04° 31.0’ 04° 32.5’ 146° 00.0’ 146° 02.0’ Habitation Aus 388

2 Schlangen Harbor, Wasu 05° 55.0’ 05° 58.0’ 147° 08.0’ 147° 13.0’ Habitation Aus 387

3 Bugoiya Harbor, Misima Island 10° 39.5’ 10° 42.5’ 152° 49.8’ 152° 55.0’ Habitation Aus 512

4 Panabwal (Conflict) Group 10° 42.0’ 10° 52.0’ 151° 38.0’ 151° 56.0’ Tourism Aus 509

21

S. No. Location

Latitude (S) Longitude (E) Reason for

survey

Affected Chart

No. From To From To

5 Deboyne Islands

10°47.0’ 10° 50.5’ 152°10.0’ 152°15.0’

Tourism Aus 512

10°45.0’ 10° 50.5’ 152°15.0’ 152°18.0’ 10°39.2’ 10° 50.5’ 152°18.0’ 152°21.0’ 10°39.2’ 10° 51.8’ 152°21.0’ 152°27.0’ 10°42.0’ 10° 51.8’ 152°27.0’ 152°30.0’ 10°45.0’ 10° 51.8’ 152°30.0’ 152°35.0’

6 Yanaba Island, Egum Atoll 09° 15.0’ 09° 18.5’ 151° 50.0’ 152° 00.0’ Tourism Aus 515

7 Dawson Strait 09° 35.0’ 09° 41.4’ 150° 55.4’ 150° 57.6’ Improved

Shipping Aus 518 09° 41.4’ 09° 44.5’ 150° 42.0’ 150° 57.6’

22

IV. COSTS AND FINANCING

33. The proposed Project is estimated to cost $48.36 million.10

Civil works is estimated at $9.80 million, equipment at $2.11 million, survey at $15.69 million, land lease at $1.40, consultants at $5.39 million, recurrent costs at $7.61 million, contingencies about $5.29 million, and financing charges during construction at $1.07 million. Details are shown in the detailed cost estimates.

34. The government has requested a loan in various currencies equivalent to SDR26,979,000 from ADB’s Special Funds resources to help finance the project. The loan will have a 32-year term, including a grace period of 8 years, an interest rate of 1.0% per annum during the grace period and 1.5% per annum thereafter, and such other terms and conditions set forth in the draft loan agreement.

35. The government will provide $6.86 million equivalent as counterpart funds to cover investment costs of: (i) office furniture and land lease and community engagement costs; (ii) recurrent costs of project administrative staff, office space and utilities, and equipment operation and maintenance; and (iii) taxes and duties.

Table 6: Financing Plan

Source Amount ($ million)

Share of Total (%)

Asian Development Bank (ADF) 41.50 85.81 Government 6.86 14.19

Total 48.36 100.00 ADF = Asian Development Fund. Sources: Government of Papua New Guinea and Asian Development Bank estimates.

36. ADB will finance 85.81% of the total project cost, these funds are for: (i) replacement and installment of navigational aids; (ii) installation of equipment, such as very high frequency transponder system for AIS and tide gauges; (iii) recurrent costs for maintenance of navaids, AIS, and tide gauges to be installed under (i) and (ii); (iv) hydrographic survey for producing ENC; (v) consulting services; (vi) physical and price contingencies; and (vii) interest charge during implementation. NMSA will cover the recurrent costs using additional revenue to be brought by improved revenue collection efficiency. Transportation and insurance costs may also be financed by the ADB loan.

37. The government will fund 14.19% of the total project cost, $6.86 million in cash and kind to cover investment costs of $1.41 million, recurrent costs of $2.60 million, and taxes and duties of $2.85 million. Taxes and duties represent an in-kind contribution by the government.

38. Tax calculations are based on customs tariffs, import levies and excise on fuel. Taxation rates applied include government service tax of 10%. Physical contingencies have been provided at 8% for civil works and 8% for field research and development, training, surveys, studies, and equipment. Price contingencies were provided for civil works materials, equipment, and surveys, and based on domestic cost escalation factors for PNG for local currency costs. There is a devaluation offset included in the price contingency based on a US dollar inflation rate of 1%. 39. An exchange rate of kina (K) 2.0619 to $1.00 as of 10 September 2012 has been used as the current rate at the time of writing. Detailed costs are shown in the following tables.

10 All financial figures are expressed in US dollars.

23

A. Detailed Cost Estimates by Expenditure Category 40. The total cost of the project is estimated at $48.36 million equivalent including taxes, duties, physical and price contingencies, and interest. The summary of cost estimates for the project is in Table 7.

Table 7: Detailed Cost Estimates by Expenditure Category

(000’s)

Item

Kina $

% of Total Base Cost

Foreign Exchange

Local Currency Total Cost

Foreign Exchange

Local Currency Total Cost

A. Investment Costs 1 Civil Works 18,518 0 18,518 8,981 0 8,981 19% 2 Equipmenta 3,980 15 3,995 1,930 7 1,938 4% 3 Survey 29,651 0 29,651 14,380 0 14,380 30% 4 Land 0 2,886 2,886 0 1,399 1,399 3% 5 Consultants 10,978 0 10,978 5,324 0 5,324 11% a. Project Management 9,528 0 9,528 4,621 0 4,621 10% b. Capacity Development 1,450 0 1,450 703 0 703 1% Subtotal (A) 63,126 2,901 66,027 30,616 1,407 32,022 66%

B. Recurrent Costs 1 PIU Staff 0 3,783 3,783 0 1,835 1,835 4% 2 Office Accommodation 0 500 500 0 242 242 1%

3 Equipment Operation and

Maintenancea 9,332 1,084 10,416 4,526 526 5,052 10%

Subtotal (B) 9,332 5,367 14,699 4,526 2,603 7,129 15% Total Base Cost 72,458 8,268 80,726 35,142 4,010 39,151 81%

C. Tax and Duties 5,731 145 5,877 0 2,850 2,850 6% D. Contingencies 1 Physical 5,259 0 5,259 2,550 0 2,550 5% 2 Price 5,651 0 5,651 2,741 0 2,741 6%

Subtotal (C) 10,909 0 10,909 5,291 0 5,291 11% E. Loan Financing Chargesb 2,201 0 2,201 1,068 0 1,068 2% Total Project Cost (A+B+C+D+E) 91,300 8,413 99,714 41,500 6,860 48,360 100%

PIU = project implementation unit. a In-kind contribution under local currency. b Includes interest charge, 1% per annum on the disbursed and outstanding amount in accordance with ADB’s Special Fund loan terms. Source: Asian Development Bank.

24

B. Allocation and Withdrawal of Loan Proceeds

41. Table 8 shows allocation and withdrawal of funds under all the categories of the project.

Table 8: Allocation and Withdrawal of Loan Proceeds Category ADB Financing

No Item ADB Financing

(SDR000’s) Percentage and Basis for Withdrawal

from the Loan Account 1 Civil Works 5,839 100 percent of total expenditure claimed*

2 Equipment 1,255 100 percent of total expenditure claimed* 3 Survey 9,348 100 percent of total expenditure claimed* 4 Consulting Services 3,461 100 percent of total expenditure claimed* 5 Equipment Operation and

Maintenance 2,942 100 percent of total expenditure claimed*

6 Interest Charge 694 100 percent of amounts due 7 Unallocated 3,440

Total 26,979 * Excluding local taxes and duties.

25

C. Detailed Cost Estimates by Financier Table 9: Detailed Cost Estimates by Financier

($ 000’s)

ADB ADF

Government

Item Amount

Financing % of Cost Category

Amount (Costs)

Amount (Tax and Duties)

Amount (Total)

Financing % of Cost Category

Total Cost

A. Investment Costs 1 Civil Works 8,981 92% 0 816 816 8% 9,797 2 Equipmenta 1,930 91% 7 176 183 9% 2,114 3 Survey 14,380 92% 0 1,307 1,307 8% 15,688 4 Land 0 0% 1,399 0 1,399 100% 1,399 5 Consultants 5,324 99% 0 69 69 1% 5,393 a. Project Management 4,621 100% 0 5 5 0% 4,626 b. Capacity Development 703 92% 0 64 64 8% 767 Subtotal (A) 30,616 89% 1,407 2,369 3,776 11% 34,391 B. Recurrent Costs 1 PIU Staff 0 0% 1,835 0 1,835 100% 1,835 2 Office Accommodation 0 0% 242 22 265 100% 265

3 Equipment Operation and

Maintenancea 4,526 82% 526 459 985 18% 5,511

Subtotal (B) 4,526 59% 2,603 481 3,084 41% 7,610 Total Base Cost 35,142 84% 4,010 2,850 6,860 16% 42,002

C. Contingencies 1 Physical 2,550 0 0 0 2,550 2 Price 2,741 0 0 0 2,741 Subtotal (C) 5,291 100% 0 0 0 0% 5,291 D. Loan Financing Chargesb 1,068 100% 0 0 0 0% 1,068 Total Project Cost (A+B+C+D) 41,500 86% 4,010 2,850 6,860 14% 48,360 % Total Project Cost 86% 14% 100% ADB = Asian Development Bank, ADF = Asian Development Fund, PIU = project implementation unit. a In-kind contribution under the Amount (Costs) of Government. b Includes interest charge, 1% per annum on the disbursed and outstanding amount in accordance with ADB’s Special Fund loan terms. Source: Asian Development Bank.

26

D. Detailed Cost Estimates by Outputs Table 10: Detailed Cost Estimates by Outputs

($ 000’s)

Item Total Cost

Output 1 Output 2 Output 3 Output 4

Amount % of Cost Category Amount

%of Cost Category Amount

%of Cost Category Amount

%of Cost Category

A. Investment Costsa

1 Civil Works 8,981 8,690 97% 291 3% 0 0% 0 0% 2 Equipment 1,938 65 3% 1,814 94% 0 0% 58 3% 3 Survey 14,380 1,707 12% 12,673 88% 0 0% 0 0% 4 Land 1,399 1,399 100% 0 0% 0 0% 0 0% 5 Consultants 5,324 0 0% 136 3% 283 5% 4,905 92% a. Project Management 4,621 0 0% 0 0% 0 0% 4,621 100% b. Capacity Development 703 0 0% 136 20% 283 40% 284 40% Subtotal (A) 32,022 11,862 37% 14,914 47% 283 1% 4,963 15%

B. Recurrent Costs 1 PIU Staff 1,835 0 0% 0 0% 0 0% 1,835 100% 2 Office Accommodation 242 0 0% 0 0% 0 0% 242 100% 3 Equipment Operation and Maintenance 5,052 3,831 76% 764 15% 0 0% 456 9% Subtotal (B) 7,129 3,831 54% 764 11% 0 0% 2,534 35%

Total Base Cost 39,151 15,693 40% 15,678 40% 283 1% 7,497 19% C. Tax and Duties 2,850 1,299 46% 1,425 50% 26 1% 100 3% D. Contingencies 1 Physicalb 2,550 1,022 40% 1,021 40% 18 1% 488 19% 2 Pricec 2,741 1,099 40% 1,097 40% 20 1% 525 19%

Subtotal (D) 5,291 2,121 40% 2,119 40% 38 1% 1,013 19% E. Loan Financing Chargesd 1,068 428 40% 427 40% 8 1% 204 19% Total Project Cost (A+B+C+D+E) 48,360 19,541 40% 19,650 41% 355 1% 8,814 18% PIU = project implementation unit. a In mid-2012 prices. b Computed at 8% for civil works; and 8% for field research and development, training, surveys and studies.

c Computed at 7% of costs. d Includes interest charge, 1% per annum on the disbursed and outstanding amount in accordance with ADB’s Special Fund loan terms. Source: Asian Development Bank.

27

E. Detailed Cost Estimates by Year Table 11: Detailed Cost Estimates by Year

($ 000’s)

Total Cost

Item Year 1 Year 2 Year 3 Year 4 Year 5 A. Investment Costsa

1 Civil Works 8,981 0 2,029 2,607 2,607 1,738

2 Equipment 1,938 124 1,814 0 0 0

3 Surveys 14,380 683 6,094 5,069 2,535 0

4 Land 1,399 164 221 277 334 403

5 Consultants 5,324 1,705 1,255 903 730 730

a. Project Management 4,621 1,388 1,061 814 679 679

b. Capacity Development 703 317 194 90 51 51

Subtotal (A) 32,022 2,676 11,412 8,857 6,206 2,872

B. Recurrent Costs

1 PIU Staff 1,835 402 378 352 352 352

2 Office Accommodation 242 48 48 48 48 48

3 Equipment Operation and Maintenance 5,052 412 597 766 1,348 1,930

Subtotal (B) 7,129 862 1,023 1,166 1,748 2,330

Total Base Cost 39,151 3,538 12,436 10,023 7,954 5,202

C. Tax and Duties 2,850 145 981 781 600 343 D. Contingencies 1 Physicalb 2,550 230 810 653 518 339

2 Pricec 2,741 248 870 702 557 364

Subtotal (D) 5,291 478 1,681 1,354 1,075 703 E. Loan Financing Chargesd 1,068 32 144 234 306 352 Total Project Cost (A+B+C+D+E) 48,360 4,193 15,240 12,392 9,934 6,600

% Total Project Cost 100% 9% 31% 25% 21% 14% PIU = project implementation unit. a In mid-2012 prices. b Computed at 8% for civil works; and 8% for field research and development, training, surveys and studies. c Computed at 7% of costs. d Includes interest charge, 1% per annum on the disbursed and outstanding amount in accordance with ADB’s Special Fund loan terms. Source: Asian Development Bank.

28

F. Contract and Disbursement S-curve

42. Figure 1 shows contract and disbursement S-curve over the life of the project.

Figure 1: Contract and Disbursement S-curve

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2012 2013 2014 2015 2016 2017 2018

mill

ion

Year

Cumulative Contract Awards Cumulative Disbursement

29

G. Fund Flow Diagram

NMSA

PIU

Project Steering Committee

Executing Agency

Advise technical and policy issues

PNG Government ADB

Communicate for project administration issues

Loan Agreement

Italics: Consultants financed by the project

Consulting Firm(s)

Delegate experts

Civil Works Contractors

(ii)

(i)

(i)

(i)

(i)

RelationshipFunds FlowDocument Flow/Management

(i) Reimbursement procedure – in accordance with the loan disbursement handbook(ii) Direct payments – in accordance with the loan disbursement handbookADB = Asian Development Bank, NMSA = National Maritime Safety Authority, PIU = project implementation unit, PNG = Papua New Guinea.

Oversee project implementation; facilitate agencies

• NMSA PIU Team Leader/Navaids Engineer• NMSA Economist• NMSA Hydrographer• NMSA Project Accountant• NMSA Community Engagement Officer• NMSA Environmental Officer• NMSA Procurement Officer• Maritime Civil Engineer (Consultant Team

Leader)• Economist• Hydrographic Advisor• Social and Poverty Specialist• Environmental Specialist• Institutional Development Specialist

30

V. FINANCIAL MANAGEMENT

43. The Financial Management Assessment was prepared in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects11 (the Guidelines) and the publication Financial Due Diligence A Methodology Note.12

A. Financial Management Assessment 44. The financial management assessment concluded that the risks associated with NMSA relate to project management and revenue collection efficiency. The financial management risks are outlined in the Risk Assessment and Management Plan. As the EA for the Project, NMSA should be knowledgeable of all ADB procedures. However, the NMSA has no prior experience in the management of foreign assisted loan projects having been created only in 2005 as a result of the ADB funded Community Water Transport Project (CWTP).13

In order to ensure compliance with ADB policy, NMSA will undergo comprehensive trainings and workshops on all ADB procedures.

45. The NMSA will also need to improve on its revenue collection efficiency. The assessment showed that the NMSA is weak in the collection of navaids levies, particularly foreign vessels, which comprise the majority of its operating revenue. It is prescribed in the NMSA Act that all levies should be collected within 2 days of arrival in any port and before departure. However, the current collection period takes about 20 days on average. This reflects on the NMSA’s ability to generate cash. Although some levies are eventually collected, it takes considerable time to convert receivables into cash. Furthermore, due to this weakness, many vessels have refused to pay and NMSA has resorted to file appropriate charges to collect. 46. The project will also result in substantial increase in recurrent costs due to the installation of 132 navigational aids and procurement of additional assets for the improvement of safety infrastructure information. Thus, ADB will cause NMSA to review its current tariff policy as well as to improve on its revenue generating capability in order for NMSA to ensure that all new assets will be maintained properly.

B. Disbursement 47. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time),14

and detailed arrangements agreed upon between the Government and ADB.

48. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),15

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 also 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.

11 ADB. 2005. Financial Management and Analysis of Projects. Manila. 12 ADB. 2009. Financial Due Diligence A Methodology Note. Manila. 13 ADB. 2004. Report and Recommendation of the President to the Board of Directors: Proposed Loan to Papua New

Guinea for the Community Water Transport Project. Manila. 14 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf. 15 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf.

http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf�

http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf�

31

49. Only direct payment and reimbursement procedures will be used during project implementation. Imprest account procedures will not be used. A dedicated project account for counterpart fund will be established from which project payments will be made. The account will be established immediately after loan effectiveness to ensure project implementation and timely disbursement. The PIU will prepare project disbursement projections (budgets) of counterpart contributions and submit to NMSA for approval and forward the projections to the Department of National Planning and Monitoring for release of funds in accordance with government financial management procedures. The government contribution to project costs will be budgeted for in each project year with necessary funds placed in a dedicated project account to be established for the counterpart funds at the beginning of the financial year to cover such expenditure. 50. The PIU will be responsible for accounting for the use of the funds in line with project activities and maintaining the documents necessary for supporting reimbursement from the ADB. The PIU will prepare the withdrawal application for approval in NMSA, and submit to ADB for reimbursement through the full supporting documentation method including bank statement of the project account. 51. Before the submission of the first withdrawal application, the government 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 government is to consolidate claims to meet this limit for reimbursement. 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. Any foreign exchange losses in the operation of the accounts are to be borne by the government. C. Accounting 52. The EA 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. The PIU will be staffed with at least one accountant in addition to accounts support staff. D. Auditing 53. The EA will cause the detailed consolidated project accounts to be audited in accordance with International Standards on Auditing and/or in accordance with 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 the EA. The government and the EA 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.

32

VI. PROCUREMENT AND CONSULTING SERVICES

54. A Procurement Capacity Assessment of the EA has established that procurement capacity remains weak. To address capacity gaps within the EA, the PIU will be supported by an international procurement specialist (consultant) to assist with procurement of civil works, equipment, surveys, and services. In addition, a procurement review for effective implementation will be carried out during project mid-term review. 55. To scale up the EA’s procurement capacity, capacity development will be provided through a PIU team of international consultants with a focus on preparing and evaluating bidding documents under the Project. The PIU will be established within NMSA to assist with the procurement of works, goods and services, and implementation of the Project. The PIU arrangements are described in paras. 9, 10, and 11. A. Advance Contracting and Retroactive Financing

56. All advance contracting will be undertaken in conformity with ADB’s Procurement Guidelines (2010, as amended from time to time)16 and ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time).17

The issuance of invitations to bid under advance contracting will be subject to ADB approval. The borrower and EA have been advised that approval of advance contracting does not commit ADB to finance the Project.

57. Advance contracting will be required to commence the recruitment of the PIU support Consultant soon after the Project is cleared by ADB to full appraisal status. The recruitment can be completed before loan effectiveness except for contract signing. The Consultants are expected to be mobilized by April 2013. The issuance of invitations to technical and financial proposals under advance contracting will be conducted by the government. 58. No retroactive financing is envisaged.

B. Procurement of Goods, Works and Consulting Services

59. Procurement of Goods and Civil Works. All procurement of goods and works will be undertaken in accordance with the Procurement Guidelines. 60. The planned procurement will comprise six civil works packages as follows: navaids replacement and installation, navaids maintenance, AIS installation and maintenance, tide gauges installation and maintenance. In addition, there are three goods supply packages for survey equipment and small boat required for NMSA’s hydrographic survey activity, and vehicles for PIU operation. 61. The project supports the use of local contractors where capacity exists. Where capacity does not exist, ADB strongly encourages local contractors to form joint venture (JV) with more experienced international contractors. Where JV arrangements are proposed, a key element should be gradual development of local capacity. 62. Procurement of Civil Works will follow a combination of National Competitive Bidding (NCB) and International Competitive Bidding (ICB). NCB will be used for procurement packages

16 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf. 17 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf.

http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf�

http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf�

33

between $100,000 - $1 million. ICB will be used for civil works contracts exceeding $1 million. The procurement method will be confirmed after detailed designs of navaids improvements and safety information improvements are completed. 63. 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 VI.C. 64. Consulting Services. The Consultant will be recruited according to ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time).18

The planned procurement will include one package for PIU consultants responsible for design, supervision of civil works, and overall implementation support. The quality- and cost-based selection (QCBS) method will be used with a standard quality cost ratio of 80:20 identified in para. 70. An estimated 153.5 person-months (international) are anticipated to undertake detailed design and implementation support in PIU. The PIU will prepare the latter three packages. The terms of reference for consulting services are detailed in Section VI.E.

C. Procurement Plan

65. This procurement plan shows the thresholds and particular contracts required to carry out the Project. Project information for the procurement plan is in Table 12.

Table 12: Project Information Country: Papua New Guinea Name of Borrower: Independent State of Papua New Guinea Project Name: Maritime and Waterways Safety Project Project Number: 44375 Date of Effectiveness: n.a. Loan Amount: $41.5 million Date of First Procurement Plan: 5 November 2012 Publication for Local and International Advertisements – Consultant:

Target 4th Qtr 2012

Publication for Local and International Advertisements – Contractor:

Target 3rd Qtr 2013

Period Covered by This Plan: Until 31 October 2014

1. Process Thresholds, Review and 18-Month Procurement Plan

66. This section identifies procurement thresholds, review requirements, and an 18-month procurement plan of goods, works, and consulting service contract packages.

a. Project Procurement Thresholds for Goods and Works

67. Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works. 18Checklists for actions required to contract consultants by method available in e-Handbook on Project

Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

http://www.adb.org/documents/handbooks/project-implementation/�

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Table 13: Procurement of Goods and Works Procurement Method Threshold Goods International Competitive Bidding (ICB)

$500,000 <

National Competitive Bidding (NCB) $100,000 < and ≤ $500,000 Shopping ≤ $100,000 Works ICB $1 million < NCB $100,000 < and ≤ $1 million Shopping ≤ $100,000

b. ADB Prior or Post Review

68. 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.

Table 14: List of ADB Prior or Post Review Procurement Method Prior or Post Comments Procurement of Goods and Works ICB Works Prior ICB Goods Prior NCB Works Prior NCB Goods Prior Shopping for Works Prior Shopping for Goods Post Recruitment of Consulting Firms Quality- and Cost-Based Selection (QCBS) Prior Full technical proposal

(FTP) (80:20)

c. Goods and Works Contracts Estimated to Cost More Than $1 Million

69. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Table 15: List of Goods and Works Contracts General

Description Contract

Value ($ million)

Procurement Method

Prequalification of Bidders (y/n)

Advertisement Date (quarter/year)

Comments

Navaids Replacement and Installation Work

9.8 ICB n Q2 2014 1 package

Hydrographic Survey

13.9 ICB n Q3 2013 1 package; no national company available

Pre-Installation Survey

1.9 ICB n Q3 2013 1 package

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d. Consulting Services Contracts Estimated to Cost More Than $100,000

70. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Table 16: List of Consulting Services Contracts

General Description

Contract Value

Recruitment Method1

Advertisement Date

(quarter/year)

International or National Assignment Comments

Project Implementation Unit

5.4 million QCBS 80:20

(FTP)

Q4 2012 International Advance contracting

e. Goods and Works Contracts Estimated to Cost Less than $1 Million

and Consulting Services Contracts Less than $100,000

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

Table 17: List of Smaller-Value Goods and Works and Consulting Services

General Description

Value of Contracts

(cumulative) Number of Contracts

Procurement / Recruitment

Method1 Comments

AIS (VHF transponder) Installation Work and Maintenance

1,330,000 1 ICB 3 relocations and 5 new installment of transponders; include helicopter transport; Periodic maintenance for new transponder after 2 years from installation

Tide Gauges Installation Work and Maintenance

1,088,500 1 ICB 4 tide gauges installment; Periodic maintenance for new tide gauges after 2 years from installation

Hydrographic Survey Equipment

660,000 1 ICB

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General Description

Value of Contracts

(cumulative) Number of Contracts

Procurement / Recruitment

Method1 Comments

Small Boat for Hydrographic Survey

55,000 1 Shopping

Vehicle Purchase 128,000 1 NCB Vehicles for PIU

D. Indicative List of Packages Required Under the Project

72. The following table provides an indicative list of all procurement (goods, works and consulting services) over the life of the project. Contracts financed by the Borrower and others should also be indicated, with an appropriate notation in the comments section.

Table 18: Indicative List of Packages

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Domestic Preference Applicable Comments

Navaids Maintenance

4.2 million 1 ICB y Periodic maintenance for new navaids commence a year after installation

E. Consultant's Terms of Reference

73. The Project will consist of four outputs: (i) improved and maintained navaids, (ii) improved NMSA safety information infrastructure, (iii) improved maritime safety practice of communities, and (iv) efficient project management and capacity development provided. 74. An estimated 153.5 person-months (international) of consulting services are required to (i) facilitate project management and implementation, and (ii) strengthen the institutional and operational capacity of the EA. Consulting firms will be engaged using the QCBS method with a standard quality: cost ratio of 80:20 in accordance with ADB’s Guidelines on the Use of Consultants (2010, updated from time to time). All international positions will have national counterparts (i.e., NMSA staff). The PIUs will follow national labor regulations, is expected to offer equal opportunities to women.

Table 19: Summary of Consulting Services’ Inputs International Specialists Person-Months

Marine Civil Engineer (Consultant Team Leader) 30 Economist/Financial Specialist 8 Environment Specialist 15 Gender, Community and Lands Specialist 18 Procurement Specialist 12 Maritime Safety Specialist 6 Hydrographic Specialist 30

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International Specialists Person-Months Institutional Specialist 30 Communication/Media Expert 4.5

Total 153.5 75. The first objective of consulting serves for the PIU is to assess, design, tender, and supervise the replacement of 99 navaids and installment of 33 navaids. The Consultant will support NMSA to implement the project according to the terms and conditions specified in the loan agreement between the government and ADB, and ensure that the specified assurances under the control of the PIU are met. 76. The Consultant will carry out all investigations; obtain all necessary site data to carry out appraisal of candidate sites and potential locations for navaids; screen and prioritize sites according to eligibility criteria; assist PIU in recruitment of Contractors to undertake the engineering and environmental pre-installation surveys and works for replacement and installation of navaids undertake site specific detailed design; prepare tender documents; support the tender processes; and supervise the installation contract. The Consultant will assist and support the PIU to prepare IEEs and environmental management plans (EMP) for “batches” of sites and navaid locations and ensure that all civil works adhere to all aspects of environmental protection, and undertake the actions according to ADB’s SPS and relevant laws of PNG. The Consultant will compile benchmark project performance baseline data as agreed. 77. The second objective is to establish and provide a maritime safety awareness program. The Consultant will assist PIU in recruiting a training provider to provide program and implement curriculum based on a work program for raising awareness on small craft safety among the general public and in around 20 rural and remote communities through a media campaign and workshops. 78. After commencing its consulting services, the PIU will be supported by two firms for (i) pre-installation survey and (ii) hydrographic survey described in Section VI.E.2 of this chapter.

1. PIU Consultants

79. Marine Civil Engineer [Consultant Team Leader] (international, 30 person-months)

(i) Establish project performance monitoring systems before subproject commencement.

(ii) Prepare initial list of navaid sites for appraisal and lead the team in conducting feasibility assessments, including baseline data collection and detailed feasibility studies based on results of pre-installation survey to be conducted by a survey Contractor. The assessment will incorporate inputs provided by the Economics and Financial Specialist, Safeguards Specialist, and Gender, Community and Lands Specialist. Feasibility assessments will be carried out in accordance with ADB’s Guidelines for the Economic Analysis of Projects, ADB's Poverty Handbook (2006) and Handbook on Social Analysis (2007), and SPS.

(iii) Prepare final technical documentation including engineering design and specifications for navaids improvement and safe information infrastructure. Designs should be based on least-life cycle cost principals.

(iv) Ensure that engineering designs for navaids incorporate improved environmental protection standards.

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(v) Supervise preparation of tender documents and conducting of the tender process for all contracts for civil works, equipment, and consulting services under the project, in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time).

(vi) Assist the Procurement Specialist and NMSA counterpart (Project Manager/Navaids Engineer and Procurement Officer) in all bidding and contracting stages and oversee the estimates of the bill of quantities are in accordance with surveys and works requirements.

(vii) Administer, implement, and monitor international and national contracts for civil works and consulting services under the Project.

(viii) Prepare contracts for hydrographic and pre-installation survey works, and AIS transponder and tide gauge civil works, and monitor contractors’ performance.

(ix) Provide guidance to contractors after being awarded contracts on how to prepare documents and adhere to required processes for implementation, monitoring, and reporting.

(x) Work with contractors for pre-installation survey and civil works to ensure that engineering designs for navaids incorporating improved environmental protection and appropriate installation standards to mitigate against potential future natural disasters including flooding, sea level rise, earthquakes, and tsunamis.

(xi) Coordinate with the Environment Specialist/Officer and Gender, Community and Lands Specialist, Community and Lands Coordinators with respect to the surveys and navaid civil works.

(xii) Review all sites’ EMP, and carry out regular audits and monitoring, and provide technical advice to the PIU on ensuring compliance with environmental assurances under the Project.

(xiii) Advise on the administration, implementation, and monitoring of international and national contracts for civil works, capacity development, and consulting services under the Project.

(xiv) Ensure HIV/AIDS awareness, environmental management and community consultation and grievance resolution provisions are included in civil works contracts.

(xv) Monitor community consultation/liaison programs during stages of project development and implementation.

(xvi) Review and approve civil works contractors’ regular monitoring reports and periodically attend site meetings with the Project Manager/Navaids Engineer.

(xvii) Review and approve the contractor’s installation methodology and work plans. (xviii) Review and approve the contractor’s progress claims and certify them for

payment. (xix) Facilitate coordination and consultation with other projects being undertaken by

NMSA, development partners, other government ministries, and the private sector.

(xx) In coordination with the NMSA Project Manager/Navaids Engineer prepare regular progress updates to the Project Steering Committee, as well as monthly and quarterly progress reports to ADB.

(xxi) Ensure that the required audits, such as environmental, social, and financial audits, are undertaken and reported, and prepare a project completion report.

(xxii) Facilitate the participation of government counterparts in ongoing capacity development activities to ensure skills transfer.

(xxiii) Build the capacity of NMSA staff through on-the-job training and the establishment of standard procedures that can be replicated in similar NMSA projects, as well as potential future externally funded projects.

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(xxiv) Review training activity reports and overall progress of small craft safety activities.

(xxv) Endorse payments for goods and services procured under this component of the Project.

(xxvi) Review progress in implementation of small craft safety activities. (xxvii) Build capacity of counterparts in all of the above. (xxviii) Undertake any related duties as required under the Project.

80. Economist/Financial Specialist (international, 8 person-months)

(i) Conduct feasibility assessment, including baseline data collection and demand forecasts to inform the economic analysis. The economic analysis should use appropriate quantitative methods to estimate and quantify in monetary terms social benefits and costs associated with the project.

(ii) Calculate economic rates of return for selected sets of navaid sites and for the overall project including appropriate sensitivity and risk analysis.

(iii) Recommend to NMSA improvements based on a cost-benefit analysis and/or cost-effectiveness analysis with a view to developing a replicable model for NMSA economist’s use under future projects.

(iv) Review a previous tariff review report19

(v) Verify the financial projections

and a PPTA (footnote 9) report to identify tariff collection issues.

20

(vi) Provide the Institutional Specialist with economic and financial inputs for establishing a mechanism to address the issues of tariff rates, payment collection, and registration.

made by the PPTA using latest financial figures.

(vii) Build the capacity of NMSA staff in all of the above through on-the-job training. 81. Environment Specialist (international, 15 person-months)

(i) Assist with data collection during engineering surveys of sites and potential navaid locations.

(ii) Liaise with the Gender, Community and Lands Specialist to develop public consultation strategy for overall project implementation.

(iii) In accordance with the environmental assessment, review procedures (EARF) prepared for the project and the IEE prepared for the two identified sites, based on site specific survey data update the existing IEE, and prepare additional IEEs for batches of sites and navaid locations. In accordance with the EARF, develop EMPs for different navaid types and for navaid installations on different seabed types.

(iv) Ensure environmental safeguards measures comply with national safeguards requirements, including submission of required documentation to Department of Environment and Conservation (DEC). Ensure that all requirements for document and information disclosure, and grievance redress are implemented as per the EARF, relevant ADB policies and government law and regulations.

(v) Assist the Civil Engineer in bringing environmental management provisions from IEE and EMPs into bid/tender documents, review bids and provide inputs to bid evaluation panel and advise evaluation team on capacity of contractor to implement proposed EMPs and undertake monitoring and reporting as required.

19 Klienhardt. 2011. NMSA Tariff Policy Review National Maritime Safety Authority. 20 Financial Analysis (accessible from the list of linked documents in Appendix 2).

40

(vi) Assist the Environment Officer review and approve the EMPs submitted by contractors.

(vii) Facilitate capacity development activities to NMSA counterpart (Environment Officer), other government staff and national consultants, as required, to ensure skills transfer for improved environmental management within government projects and NMSA.

(viii) Conduct training and other capacity building activities related to safeguards for government staff, PIU members and other relevant stakeholders.

(ix) Build the capacity of Environment Officer for monitoring compliance with EMPs and associated works under the Project and for longer term improved environmental management within NMSA.

(x) Undertake related duties as required under the Project. 82. Gender, Community and Lands Specialist (international, 18 person-months)

(i) Conduct feasibility assessments, including baseline data collection, detailed feasibility studies, and social impact assessment including gender analysis.

(ii) Assist NMSA counterpart (Community and Lands Coordinators) with initial ongoing public consultations for feasibility assessment and implementation of civil works.

(iii) Undertake Poverty and Social Assessment for the sites. (iv) Ensure that all sites are implemented in compliance with the Project’s RF and

ADB’s requirements on social safeguards, including: (a) screening of subprojects for their potential social impacts; (b) preparing due diligence reports for subprojects; (c) collaborating with Provincial Land Officer and/or District Land Officer to carry out necessary work (e.g., land surveys), and preparation and implementation of RPs for subprojects that may involve land acquisition; (d) assisting in drafting and finalizing MOA with landowners; (e) assisting in disclosure of relevant safeguard information to affected persons and local stakeholders; and (f) assisting in implementation and monitoring of social safeguard/resettlement activities.

(v) Develop relevant indicators and gender disaggregated socio-economic data collection strategies in collaboration with the Marine Civil Engineer in order to monitor and assessment project performance.

(vi) Provide support for implementing and monitoring of GAP. (vii) Assist in contracting of socio-economic data collection and reporting to national

consultant, and provide ongoing support for monitoring contract performance. (viii) Review bids and advise evaluation team on capacity of contractor to implement

proposed mitigation plans. (ix) Develop checklists and questionnaires to monitor and evaluate the compliance of

contractors on contractual obligations related to social aspects. (x) Develop education and awareness program and produce relevant instruction and

awareness materials for raising understanding and awareness on gender, HIV/AIDS and STIs, and safety among target communities, especially women and girls, and civil works contractors.

(xi) Discuss and review work plan and training approach with the PIU, incorporating any input received, before finalizing curriculum and materials.

(xii) Demonstrate the education and awareness program in target communities, holding separate sessions for men and women, as well as for civil works contractor workers.

41

(xiii) Build the capacity of and provide guidance to the Community and Lands Coordinators for providing the education and awareness program, as well as project implementation and monitoring including the GAP.

(xiv) Review socio-economic monitoring reports submitted by national consultants as part monitoring of overall contract performance.

(xv) Work with the Maritime Safety Specialist and NMSA to ensure small craft safety programs adequately address gender issues.

83. Procurement Specialist (international, 12 person-months)

(i) Assist in preparing invitations for expressions of interest, evaluation of submissions, tender documents and conducting the tender process for all contracts and consulting services under the Project.

(ii) Procure relevant equipment, materials and consulting services required to carry out small craft safety awareness activities and hydrographic surveys.

(iii) Build the capacity of PIU staff involved in procurement, particularly NMSA counterpart (Procurement Officer), through on-the-job training and establishment of standard procedures that can be replicated for future routine projects, as well as potential future externally funded projects.

(iv) Undertake any other related duties as required under the Project. 84. Maritime Safety Specialist (international, 6 person-months)

(i) In consultation with the NMSA Small Craft Safety Officer and NMSA Women in Maritime Association (WIMA), prepare work program for extending small craft safety awareness activities to communities who will be benefitting from jetties under the Project. The program should incorporate relevant materials, manuals and lessons learned from the CWTP (footnote 13) and ongoing NMSA safety activities.

(ii) In collaboration with the NMSA, develop indicators, data collection, and reporting systems for monitoring the progress and impact of safety awareness activities in target communities.

(iii) Work with the NMSA WIMA, the Gender, Community and Lands Specialist, and the Communication/Media Expert to ensure that the training program includes specific activities targeted at raising small craft safety awareness among women and children.

(iv) Develop a training program for NMSA staff in using safety information systems with an Institutional Specialist.

(v) Carry out safety awareness training activities for women and children in target communities.

(vi) Build capacity of NMSA staff to effectively use safety information through training activities.

(vii) Assist the Procurement Specialist in preparing relevant equipment, materials and services required to carry out small craft safety awareness activities.

(viii) Monitor implementation and performance of the small craft safety awareness program, making adjustments where necessary in collaboration with the NMSA.

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85. Hydrographic Specialist (international, 30 person-months)

(i) Work out the specific limits and the details of survey required for meeting the standards of Class I surveys as mentioned in SP 44 of International Hydrographic Organization.

(ii) Assist the Procurement Specialist in the preparation of the bid documents and oversee the estimates of the bill of quantities are in accordance with surveys and works requirements.

(iii) Assess and evaluate technical capabilities of bidders for the surveys. All the surveys need experience in operating shallow and uncharted waters.

(iv) Review the quality assurance and quality control manual prepared by the awarded survey agency prior to commencement of its services.

(v) Ensure vessels deployed for the survey have the clearances from the marine surveyors and the government to ensure safety of men and material at sea.

(vi) Inspect equipment, personnel, calibration of the equipment and validation of data prior to commencement of survey.

(vii) Ensure the standard procedures for calibration and the deployment of the equipment are followed.

(viii) Develop procedures for collection and stowage of data from the field parties on daily basis.

(ix) Review the post processing procedures and preparation of data sets. (x) Work out the data sets and deliverables required by Australian Hydrographic

Service for production of navigational charts and ENCs. (xi) Develop a training program for NMSA staff in hydrographic surveys with an

Institutional Specialist. (xii) Build capacity of the Hydrographic Unit by involving the personnel from the unit in

all the activities. 86. Institutional Specialist (international, 30 person-months)

(i) Review existing institutional arrangements, roles, and responsibilities in NMSA, and identify measures to address problems while referring to the ADB technical assistance.21

(ii) Design institutional arrangements, roles, and responsibilities for improving NMSA’s capacity given the current shortage of its resources.

(iii) Facilitate NMSA to define its responsibility of navaids in maritime and inland waterways and identify needs to update national laws and regulations.

(iv) Assist NMSA in developing its rolling corporate planning process and implementing the process.

(v) Identify required resources to accomplish NMSA tasks towards and under an improved NMSA structure and the corporate planning process.

(vi) Develop a training program in collaboration with specialists in the PIU. (vii) Assist NMSA in implementing the training program. (viii) Facilitate coordination and consultation between NMSA and stakeholders by

providing his/her expertise. (ix) Review a previous tariff review report (footnote 19) and a PPTA report (footnote

8) to identify tariff collection issues.

21 ADB. 2011. Technical Assistance to Papua New Guinea for Maritime and Waterways Safety Project. Manila (TA-

7869).

43

(x) Given economic and financial inputs from Economist/Financial Specialist, recommend a mechanism to address the issues of tariff rates, payment collection, and registration.

(xi) Undertake any other related duties as required under the Project. 87. Communication/Media Expert (international, 4.5 person-months)

(i) Develop an effective advertisement strategy for maritime safety awareness and develop a detailed advertisement plan.

(ii) Coordinate with national media to announce future safety awareness events and advertise the importance of safe shipping using various media.

(iii) Participate in safety awareness workshops, collect materials, and report the workshops via media.

(iv) Document the advertisement strategy and plan, and coordination approach to national media.

(v) Undertake any other related duties as required under the Project. (vi) Build capacity of NMSA counterparts in all of the above.

2. Service Contracts

88. The PIU will prepare the following service contracts. 89. Pre-Installation Survey is required to provide geological and environmental information to ensure proper and accurate design of navaids, site preparation, cost estimates, and CEMPs.

(i) Visit all navaid sites while recording sites’ x-y coordinates using global positioning system.

(ii) Dive into water to oversee area condition surrounding navaids with respect to geology and environment.

(iii) Record geological and environmental condition of the area and characterize site conditions based on developed criteria agreed by the PIU.

(iv) Identify potential environmental impacts to be caused by replacement and installment of navaids.

(v) Recommend potential installation methods based on the area conditions while referring to PIU’s technical guidance.

(vi) Prepare final documentation, including site location, geological and environmental information, installation methods, and protection requirements for the sites.

90. Hydrographic Survey is required to provide necessary hydrographic information for generating ENC.

(i) Develop a work plan and submit it to PIU for its endorsement. (ii) Prepare required equipment and vessels, which are fully complied with

international and PNG law and regulation, to conduct survey. (iii) Submit a survey itinerary and consult with PIU to decide the detailed schedule of

survey while considering local weather and hydrological conditions. (iv) Undertake survey under PIU’s supervision. (v) Compile and submit all necessary information to generate ENC presented in both

an electronic data file and a hard copy drawing.

44

3. Outputs

91. The PIUs shall produce the following outputs:

(i) Subproject assessments including technical, economic, environmental and social impact assessments for all prioritized subprojects,

(ii) Detailed engineering designs, technical specifications, and environmental management and monitoring plans for all civil works of the Project,

(iii) Evaluation reports for all proposed civil works contracts, (iv) Executed civil works contracts, (v) Project reports (as detailed in para. 92), (vi) Detailed project performance monitoring system including detailed indicators,

and (vii) Project consultation and communication strategy.

4. Reporting

92. The Consultant will support the PIU with reporting requirements including:

(i) Inception report, within 4 weeks of Project commencement (ii) Quarterly progress reports in a format agreed upon with NMSA and ADB,

submitted within 1 month of the end of the quarter (iii) Mid-term progress report (iv) Draft final report and draft project completion report in agreed format (v) Final report and final project completion report 1 month after receiving the

comments on the final draft report from the government and ADB.

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VII. SAFEGUARDS

93. The Project, including the civil works, has been classified as B for environment and involuntary resettlement. Framework documents have been prepared to describe the safeguard requirements for the Project, including: (i) an environmental assessment review framework,22 and (ii) a RF.23

94. NMSA as the EA will have overall responsibility for the Project’s compliance with safeguard requirements. NMSA will also coordinate with relevant government agencies, including the DEC, and Department of Lands and Physical Planning as needed. The PIU will be responsible for following the government’s safeguards assessment procedure and ADB’s Safeguards Policy Statement and obtaining safeguard clearance from ADB and the government prior to the start of civil works. 95. Environment. An IEE has been undertaken for the two identified sites (covering eight navaid installations) and an EARF has been prepared to guide the assessment and review process for project investments. These investments, which will be dispersed over 132 sites, are expected to be small-scale and largely similar in nature. Once sites are selected, specific details on how to mitigate and monitor effects of navaid installation will be provided in the IEEs and EMPs. The environmental specialists in PIU will prepare the IEEs and EMPs and the DEC will advise whether environmental permits are required for any of the sites. DEC will clear the framework and examinations in accordance with its rules and procedures. The EARF and IEE are presented in the RRP linked documents. 96. Table 20 provides outlines the major actions associated with preparation, submission and approval of environment documents within the government and to ADB.

22 Environmental Assessment and Review Framework (accessible from the list of linked documents in Appendix 2). 23 Resettlement Framework (accessible from the list of linked documents in Appendix 2).

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Table 20: Environmental Actions and Conditions

Environmental Management Requirements

Environmental Management Actions

Conditions Required to Complete Actions

Pre-construction Stage Establish environmental management system Conduct surveys including environmental studies EO and ES, CE and/or procurement specialists extract installation requirements from EMP and submit to IA for inclusion in tender documents. EO and ES review tender documents and confirm that environmental management provisions are sufficient EO and ES provide support to evaluation team and reviews environmental conditions of bids and rank contractors on this ability EO and ES reviews Construction EMP (CEMP) prepared by contractors. IA/PIU approves CEMP after receiving comments from EO/ES. PIU verifies compliance of Contractor with CEMP at site meeting

Inclusion of covenants and safeguard requirements in agreement/loan documents Budget, facilities and staff for environmental management been provided according to Loan Agreement, EARF and IEE. Consultants/qualified experts recruited, IEEs and EMPs approved by ADB and government as per EARF. IA has necessary technical capacity and experience to integrate EMP requirements into project. Environmental conditions have been prepared which are integrated into tender documents EO or ES to be a member of the Bid Evaluation Panel Contractor appoints environmental staff. After award of contract, Contractor prepares site/installation type specific CEMPs Contractor cannot take possession of construction site until (i) CEMP has been approved and (ii) induction is completed satisfactorily

Project becomes effective

Environmental Officer (national) (EO) and Civil Engineer (CE) included in NMSA’s PIU (through secondment from NMSA) and environmental specialist (international) (ES) in PIU via PIU consultant team

Tender documents prepared

Tenders evaluated and Contractor appointed

Contractor prepares CEMP

PIU to update existing IEE and prepare additional IEEs as required (covering “batches” of sites/locations and site specific EMPs

Contractor approved to start work

47

Environmental Management Requirements

Environmental Management Actions

Conditions Required to Complete Actions

Construction Stage

EO and ES monitor contractor’s CEMP compliance activities, coordinate consultation events, and liaise with CE and PIU as required.

PIU audits construction activities

ES evaluates monitoring program

ES assist ADB on supervision missions according to the Loan Agreement

If noncompliance is identified, PIU (ES) support IA to instruct contractors to prepare and implement corrective action plan (CAP) Construction completed

Contractor complies with CEMP requirements for implementing and monitoring work on-site

ES verify monitoring reports. IA reviews and signs-off on completed work

NMSA (with PIU assistance) submit monitoring report (including CAP, if any) to ADB for review according to the Loan Agreement and to environmental authorities according to host country regulations Project works completed in accordance with the CEMP and all sites satisfactorily rehabilitated and restored. Payments may be withheld if sites not cleared and closed to meet CEMP specifications.

Operation Stage NMSA (or contractor) undertakes O&M and undertakes repair and maintenance activities as required

NMSA submits monitoring reports to ADB according to Loan Agreement

Contractor begins work

Environmental monitoring undertaken and reports prepared. (i) By Contractor: periodical environmental report sent to IA; (ii) By NMSA environmental monitoring incorporated into Quarterly Progress Reports (QPR) submitted to ADB according to the Loan Agreement. NMSA submit CAP (if any), to ADB for review

Construction completed and project commissioned

Operations activities to follow requirements of EMP; Submission of monitoring reports to ADB according to Loan Agreement; PIU consultant prepares project completion report at close of project (covers environmental management and capacity building

48

97. Land Acquisition and Resettlement. The Marine Civil Engineer of the PIU will manage the day to day activities, including safeguard activities around social risks, assisted by an international Gender, Community and Lands Specialist, together with two NMSA Community and Lands Coordinators. The social impacts of the Project are likely to be modest as the Project involves installation of navaids in 132 sites, almost all of which will be in the seabed, or on reefs and uninhabited foreshore. This means that no people will need to be resettled, but leases or purchase of the reef, foreshore or other lands from the customary land owners/users will be required. The International Gender, Community and Lands Specialist, with assistance from the Community and Lands Coordinators will be responsible for (i) preparation and implementation of the RPs to negotiate land settlements in collaboration with the Department of Lands and Physical Planning, (ii) preparation of a MOA for security of the navaids, to be signed between NMSA and communities where navaids are to be installed, and (iii) facilitation of consultations as required at various stages of the Project and individual subprojects. Specifically, during the land acquisition and resettlement process, they will ensure that entitlements and mitigation measures established in the RPs are consistent with the RF and ADB policy; and suitable budgetary provisions are made for timely land acquisition/RP implementation. They will also ensure that funds for compensation and entitlements under the RP, provided through the NMSA are fully provided for in plans prior to the commencement of works/activities. An initial RP has been developed for two identified sites (covering seven navaid installations in China Strait and Rabaul) and as each subproject site is identified, the Gender, Community and Lands Specialist and Community and Lands Coordinators in the PIU, will prepare either (i) a RP as per the agreed RF for land acquisition, or (ii) a due diligence report documenting the screening and consultation process when an RP is not required. 98. The Gender, Community and Lands Specialist will be an expert in gender and social safeguards, and will be responsible for strengthening the NMSA capacity in gender mainstreaming and social development, including undertaking on-the-job training and supporting the national officers so that, during the Project, Community and Lands Coordinators are able to carry out the safeguard programs. In the first and second year of the Project, the specialist will intensively engage in tasks described in para. 82 to establish the Coordinators’ capacity. Then check their performance and provide adequate training in the following years. 99. An Indigenous Peoples Framework and Plan is not required for this Project.24

24 See Section IX.B for Safeguards Monitoring.

49

VIII. GENDER AND SOCIAL DIMENSIONS

100. The Project is classified as effective gender mainstreaming. A GAP25

Table 21 is prepared to

guide implementation of the Project as shows.

Table 21: Gender Action Plan

Outputs Proposed activities and targets Responsibilities

Output 1. Replaced, installed and maintained navaids NMSA will construct132 navaids (99 replacements and 33 new installments) to provide safe and efficient transport services.

• Involve women in community consultations on the design, location, and maintenance of the navaids; provide separate meetings for women and men (at least 40% women in community consultations).

• Employ sufficient Community and Land Coordinators (CALCs) in the Community Development Department (CDD) of National Maritime Safety Authority (NMSA) to manage the community engagement plan, land acquisition activities, implementation of gender action plan (GAP), and safety awareness activities. (At least 50% employed CALCs are women.)

• Provide training in land law, land administration and mediation/conflict resolution for all CALCs to ensure the Land Investigation Report includes all women landowners and protects women’s and girls’ land inheritance rights.

• Include women in any land compensation payments (lease, purchase or arrears) and ensure their participation in any decision making meetings.

• Arrange HIV/AIDS training for contractors, workers, and community members in targeted sites (both male and female). The training will include awareness raising and prevention of violence against women.

• Ensure women retain access to traditional fishing and seafood collection sites.

• Selection criteria for subprojects consider women’s access to social services such as education and health facilities, as well as market access.

• Site surveys identify and address the access and mobility needs of women and children.

• Ensure that 40% of Community Lighthouse Committee (CLC) members are women and at least one woman is a joint signatory to the CLC bank account.

• Arrange for CLC members to receive relevant training for their responsibilities, maritime safety issues, and community development planning for small scale projects (through the PNG Department of Community Development).

• 20% of CLC payments to be earmarked for women’s or girls’ activities, to be decided by women themselves.

CDD; CALC; International GCLS HRD of NMSA; PIU DLPP; PIU; GCLS DLPP; PIU; CALC PIU; CALC PIU; CALC PIU; CALC PIU; CALC; International GCLS PIU; CALC; GCLS PIU; CALC; GCLS PIU; CALC; GCLS

Output 2. Improved safety information infrastructure NMSA will produce navigational charts for 7 ports and extend the coverage of automatic identification system.

• NMSA consult men and women to consider needs for local and international shipping and to make decisions regarding areas to be covered by navigational charts.

• NMSA to provide increased access to safety information for vessels, including small craft owners and communities (including women and children).

NMSA; PIU; Hydrographic specialist PIU; CALC; Communications/Media Specialist

25 Gender Action Plan (accessible from the list of linked documents in Appendix 2).

50

Outputs Proposed activities and targets Responsibilities

Output 3. Improved maritime safety practice of communities NMSA will provide water safety awareness activities for the public in targeted rural and remote communities to improve small craft safety practices.

• NMSA develops safety awareness training activities in consultation with Women in Maritime Association (WI MA).

• Strengthen the advisory role of Women in Maritime Association in NMSA to promote maritime safety among women.

• PIU recruits a communications specialist with skills in communication and advocacy to support water safety awareness campaigns for men, women, and children.

• Maritime safety awareness materials are gender mainstreamed: at least 50% of safety awareness training materials (e.g., manuals, posters, etc.) address gender concerns or show women in illustrations.

• Community maritime safety awareness training activities include at least 50% female participants, and separate training is provided to women and girls in the community.

• The impact of the project on the social and economic wellbeing of women in target communities is monitored and evaluated.

NMSA; PIU; WIMA NMSA; PIU Safety Specialist; CALC; GCLS NMSA; PIU NMSA; PIU Safety Officer; GCLS; Communications/Media Specialist CALC; GCLS PIU; GCLS; CALC

Output 4. Efficient project management and capacity development NMSA will establish PIU to implement activities, and support is provided for capacity development, on-the-job training and coaching for staff.

• NMSA develops a Gender Equity and Anti-Discrimination Policy. Tools and training are provided for managers to develop institutional policies on gender and HIV and AIDS (through BAHA)26

• Recruit a gender, community, lands specialist for the PIU to help NMSA with gender mainstreaming activities and GAP implementation.

• Ensure the institutional development plan includes capacity building measures on safeguards and gender issues with respect to the transport sector.

• Include gender awareness training for all NMSA induction courses, managers, the PIUs, and all staff dealing with communities.

• Develop a project design monitoring framework with monitoring indicators on GAP implementation; include sex-disaggregated data in the baseline, progress, monitoring and evaluation reports.

• NMSA to encourage women candidates to train and apply for maritime employment, particularly in technical and managerial areas.

• NMSA supports family-friendly policies such as flexible working hours and leave arrangements, to help both men and women fulfill parental duties (e.g., care for children during holidays and sickness).

• Ensure that at least 30% of female NMSA staff receive relevant institutional strengthening training programs.

• Ensure that all NMSA staff and PIU staff participate in gender awareness programs.

NMSA; GCLS NMSA, HRD; PIU NMSA; PIU; GCLS GCLS PIU; GCLS NMSA, HRD; PIU; Institutional Specialist NMSA, HRD; PIU; GCLS NMSA, HRD; PIU; Institutional Specialist NMSA, HRD; PIU; Institutional Specialist

Implementation Arrangements The Gender Action Plan (GAP) will be implemented by the PIU in NMSA, which will include two community and lands coordinators (CALCs) to be supervised by one international gender, community and lands specialist (GCLS; part time), all of whom will be responsible for community engagement, water safety education, and gender aspects of the project.

26 PNG Business Coalition Against HIV and AIDS (BAHA) provides free training to PNG businesses and statutory

bodies.

51

Outputs Proposed activities and targets Responsibilities These staff in the PIU will be supported by NMSA’s Community Development Department. The specialists will be responsible for incorporating the GAP into project planning and implementation, including conducting awareness workshops and establishing sex-disaggregated indicators for project performance and monitoring. The PIU will report progress on GAP activities in regular progress reports to ADB and the Government. Other consultants, training providers, or NGOs may be hired to implement different GAP activities under the guidance of the international GCLS. ADB = Asian Development Bank, CDD = Community Development Department of NMSA, CALC = Community and Lands Coordinator, CLC = Community Lighthouse Committee, GCLS = Gender, Community, and Lands Specialist, DCD = Department of Community Development, DLPP = Department of Land and Physical Planning, GAP = gender action plan, HRD = Human Resource Department, NMSA = National Maritime Safety Authority, PIU = project implementation unit. WIMA = Women in Maritime Association. 101. With reference to the summary poverty reduction and social strategy report27 (linked RRP document28) describe how each action plan required under the Project (gender,29 consultation and participation, labor, HIV/AIDs, and other social risks) will be implemented, i.e., (i) describe who is responsible to ensure the actions are implemented, (ii) what resources are required to implement the action plans, and, (iii) if there is not a consultation and participation plan, how various stakeholders will be engaged in implementing action plans.30

See Section IX.B to describe how the gender and social dimensions will be monitored.

102. The Community Engagement Program31 based on the previous Community Based Security and Maintenance of Lights Program32 under the first navaids project33

was prepared to guide community consultation, communication, training, awareness activities, land acquisition and compensation processes, and monitoring, with the aim of ensuring the safety and security of navaid structures and lights.

27 ADB's Handbook on Social Analysis: A Working Document: http://www.adb.org/Documents/Handbooks/social-

analysis/default.asp. 28 Summary Poverty Reduction and Social Strategy (accessible from the list of linked documents in Appendix 2). 29 Briefing Note: Project Gender Action Plans: http://www.adb.org/Documents/Brochures/Project-Gender-Action-

Plans/default.asp, and Updated Gender Mainstreaming Categories of ADB Projects: https://lpedgedmz.adb.org/ lnadbg1/ocs0178p.nsf/0/37CC7D6E8E3CC57D482576E20083C156?OpenDocument

30 Staff Guide to Consultation and Participation: http://www.adb.org/participation/toolkit-staff-guide.asp and, CSO Sourcebook: A Staff Guide to Cooperation with Civil Society Organizations: http://www.adb.org/Documents/ Books/CSO-Staff-Guide/default.asp.

31 Community Engagement Program (accessible from the list of linked documents in Appendix 2). 32 PNG National Maritime Safety Authority, Josephine Gena, Community Based Security and Maintenance Program

Implementation Framework, December 2005. 33 ADB. 2000. Report and Recommendation of the President to the Board of Directors: Proposed Loan to Papua New

Guinea for the Rehabilitation of the Maritime Navigation Aids System Project. Manila.

http://www.adb.org/Documents/Handbooks/social-analysis/default.asp�

http://www.adb.org/Documents/Handbooks/social-analysis/default.asp�

http://www.adb.org/Documents/Brochures/Project-Gender-Action-Plans/default.asp�

http://www.adb.org/Documents/Brochures/Project-Gender-Action-Plans/default.asp�

https://lpedgedmz.adb.org/%20lnadbg1/ocs0178p.nsf/0/37CC7D6E8E3CC57D482576E20083C156?OpenDocument�

https://lpedgedmz.adb.org/%20lnadbg1/ocs0178p.nsf/0/37CC7D6E8E3CC57D482576E20083C156?OpenDocument�

http://www.adb.org/participation/toolkit-staff-guide.asp�

http://www.adb.org/Documents/%20Books/CSO-Staff-Guide/default.asp�

http://www.adb.org/Documents/%20Books/CSO-Staff-Guide/default.asp�

52

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 Safer and enhanced access to socioeconomic opportunities by communities in PNG and by regional and international stakeholders

By 2020 Number of passengers of marine and waterways transport increases from 620,500 in 2012 to 720,000

Freight volume of marine and waterways transport increases from 8 million tons in 2012 to 12 million tons

Baseline survey and monitoring survey at inception, midterm, and completion NMSA annual reports

Assumptions Private sector operators respond to opportunities.

Sufficient incentives are provided for rural industries to grow in response to services.

Risks Domestic and external economic conditions deteriorate, constraining growth and development.

National and social instability is present.

Outcome Environment for safe and economic shipping routes provided by NMSA

By 2018 Annual value of vessel damage and lost cargo decline from K7.5 million in 2012 to K3.5 million

Annual loss of life caused by maritime accidents reduced from 25 in 2012 to 10

Community consultation

NMSA annual reports

Assumption NMSA development and transport sector priorities remain consistent.

Risks Ship operators do not rely on NMSA information.

Incidents are caused by exogenous factors, such as unexpected natural disasters and human error.

Outputs 1. Replaced,

installed, and maintained navaids provided by NMSA

By 2018 Operational navaids increase from 214 in 2012 to 409

Number of navaids receiving regular inspection and necessary maintenance increases from 214 in 2012 to 409

At least 40% of CLC members are women

NMSA asset inventory

NMSA contract documents

NMSA progress reports

Assumptions Counterpart staff are available.

PIU is effective.

Risks Vandalism, which destroys navaids, exists.

Land disputes negatively affect CLCs’ ability to protect navaids.

2. Improved safety information infrastructure provided by NMSA

By 2018 Percentage of marine and waterways covered by AIS network increases from 30

NMSA annual reports

NMSA progress reports

Assumptions Counterpart staff are available.

53

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

in 2012 to 65

Percentage of marine and waterways covered by navigational charts increases from 28 in 2012 to 35

PIU is effective.

3. Improved maritime safety practice of communities provided by NMSA

By 2018 70% of community members, including women, successfully demonstrate knowledge of maritime safety practices

Average annual expenditure by NMSA on search and rescue operations declines from K0.75 million in 2012 to K0.45 million

NMSA regulatory reports

Quarterly reports submitted to project steering committee

Assumption Awareness activities and training translate to improved maritime safety practices in communities.

Risk Institutional strengthening is delayed or incomplete.

4. Efficient project management and capacity development provided by PIU

By 2018 At least 90% of activities outlined in a work plan completed

At least 30% of female NMSA staff receive relevant institutional strengthening training programs

All NMSA staff and PIU staff participate in gender awareness programs

NMSA annual reports

Quarterly reports submitted to project steering committee

Assumption Counterpart staff are available and consultants are effective.

Risk NMSA staff lack interest in training program.

54

ADB = Asian Development Bank, AIS = automatic identification system, CLC = community lighthouse committee, navaids = navigational aid, NMSA = National Maritime Safety Authority, PIU = project implementation unit, PNG = Papua New Guinea. Source: Asian Development Bank.

Activities with Milestones Inputs 1. Replaced, installed, and maintained navaids 1.1 Conduct public consultation and survey to check status of

navaids (2013–2016) 1.2 Develop improvement and maintenance plan (2013–2014) 1.3 Prepare bid documents, including detailed engineering

design (2014–2015) 1.4 Contract navaids civil works (2014–2015) 1.5 Conduct civil works (2014–2018) 1.6 Establish environment for community engagement

program (2014–2015) 1.7 Carry out community engagement program and land

acquisition activities (2014–2018) 2. Improved safety information infrastructure 2.1 Review NMSA’s infrastructure installation plan (2013) 2.2 Review current coverage of hydrographic charts and

identify areas to be widened (2013) 2.3 Prepare bid documents of procurement of installation work

and maintenance of AIS and tide gauges (2013) 2.4 Prepare bid documents of hydrographic survey (2013–

2014) 2.5 Contract AIS and tide gauges installation work and

maintenance (2013–2014) 2.6 Contract hydrographic survey (2013–2014) 2.7 Installation work of information system (2014) 2.8 Hydrographic survey (2014–2016) 3. Improved maritime safety practice of communities 3.1 Design maritime safety training programs and schedule,

seeking feedback from relevant stakeholders (2013–2016) 3.2 Develop maritime safety information and awareness

raising materials (2013–2018) 3.3 Conduct safety awareness and training activities on

maritime safety in target communities (2013–2018) 4. Efficient project management and capacity

development 4.1 Establish PIU (2013) 4.2 Generate a work plan (2013–2017) 4.3 Establish monitoring and evaluation system and monitor

project performance indicators (2013–2018) 4.4 Conduct a training needs assessment and develop a

training program for NMSA staff (2013) 4.5 Provide training programs for NMSA staff (2013) 4.6 Evaluate training outcome and improve training programs

(2014–2016) 4.7 Provide improved training programs (2014–2018)

Loan

ADB: $41.50 million

Item Amount ($ million) Civil works 8.98

Equipment 1.93

Survey 14.38

Consulting services

5.32

Maintenance 4.53

Contingencies 5.29

Loan financing charges

1.07

Government: $6.86 million

Item Amount ($ million)

Investment costs

Recurrent costs

1.41

2.60

Taxes and Duties

2.85

55

B. Monitoring

103. Project performance monitoring. Within six months of the loan effectiveness, NMSA through the PIU will establish a project performance and monitoring system. ADB and the government will agree on a set of indicators for monitoring and evaluating how well the project achieves its goals and purposes. These indicators will be refined and monitored during project implementation. The indicators will include data for monitoring maritime safety improvements, transport sector performance, socioeconomic development, environmental impact, and institutional development. Monitoring and evaluation will be based on gender-disaggregated data for social and poverty impact indicators. The PIU Consultant will provide hands-on training to NMSA staff in data collection, monitoring, and evaluation. NMSA through the PIU shall monitor and evaluate the indicators according to the agreed framework on a quarterly basis to determine the efficiency and effectiveness of the Project. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly through the NMSA quarterly progress reports and after each ADB review mission. These quarterly reports will provide information necessary to update ADB's project performance reporting system.34

In addition, a project steering committee will oversee and monitor the overall implementation of the Project.

104. Procurement performance review. PIU’s procurement performance and implementation effectiveness will be reviewed by ADB during project mid-term review. If the review finds issues, PIU will develop a mitigation plan and address the issues by implementing the plan with support from an international Procurement Specialist.

105. Compliance monitoring. This will be monitored through regular quarterly progress reports and during regular ADB review missions. The PIU is required to monitor contractor compliance with approved CEMPs.

106. Safeguards monitoring. NMSA will be responsible for monitoring safeguard activities through the PIU. NMSA will submit quarterly progress reports to ADB, and the findings of the CEMP compliance monitoring will be incorporated into the progress reporting of the PIU. Safeguard monitoring is included as a requirement of the EARF.35

Before commencing work the contractor will prepare a CEMP which will establish how the contractor will comply with the safeguard requirements, the CEMP will be reviewed and approved by the PIU. Monitoring of the contractor’s work will be undertaken by the Environment Officer. Monitoring will also be carried out independently by the DEC.

107. NMSA will also submit a subproject land acquisition completion report to ADB before award of civil works contracts for subprojects involving land acquisition and resettlement. ADB review missions will also check the progress on implementation of safeguard requirements. If any subproject involved significant safeguard issues, NMSA will recruit qualified and experienced external experts or qualified civil society organizations to verify the PIU’s monitoring information on an annual basis. The PIU will recruit such experts or organization in consultation with ADB and submit external monitoring reports to ADB.

108. Gender and social dimensions monitoring. Action plans pertaining to Social, Gender, and Poverty will be implemented by the PIU as required. It is not envisaged that there are any

34 ADB's project performance reporting system is available at: http://www.adb.org/Documents/Slideshows/PPMS/

default.asp?p=evaltool. 35 Environmental Assessment and Review Framework (accessible from the list of linked documents in Appendix 2).

http://www.adb.org/Documents/Slideshows/PPMS/%20default.asp?p=evaltool�

http://www.adb.org/Documents/Slideshows/PPMS/%20default.asp?p=evaltool�

56

significant issues with the Project as pertaining to these issues. 109. The Project will engage a Gender, Community and Lands Specialist who will provide guidance to the PIU in developing and establishing an effective monitoring and reporting systems and processes. Baseline Surveys will be undertaken at the start of project implementation and all indicators in the GAP will be continuously monitored and reported. These will be included in the PIU quarterly reports and Project monitoring reports. A mid-term review will be carried out and a project completion report will be undertaken at project end.

C. Evaluation

110. Soon after the loan is approved or PIU consultants are mobilized, ADB will field an inception mission to agree with the government, NMSA on implementation requirements of the Project as well discuss in detail on the procedures relating to procurement of works and goods, recruitment of consultants and disbursements. ADB and the government will undertake semiannual reviews of the Project to consider: the (i) scope of the Project, (ii) implementation arrangements, (iii) compliance with loan covenants, (iv) physical achievements against targets and milestones, and (v) project implementation issues requiring resolution or action. The midterm review will be made after two years of the loan effectiveness date. Prior to the midterm review, NMSA with the assistance of PIU will prepare a position paper outlining any proposals for any changes required under the Project which will not adversely affect the Project’s outcomes. The midterm review will examine in detail the implementation progress and project design (institutional, administrative, organizational, technical, environmental, social, poverty reduction, resettlement, economic, and financial aspects), and identify courses of action that would improve project performance, viability, and the achievement of targets and project objectives. All the assumptions and risks noted in the design and monitoring framework will be reviewed. Within three months of physical completion of the Project, NMSA will submit a project completion report to ADB.36

111. ADB will undertake a project completion review (PCR) of the Project after 12-24 months from physical completion date. The PCR will evaluate the processing and design of the Project, both by ADB and the borrower amongst others assess and evaluated (i) performance of the borrower and EA in managing and implementing the Project, in complying with ADB’s guidelines, policies, practices, procedures, and loan covenants, and evaluate project costs, disbursements, and institutional improvements; (ii) assess the performance of consultants; (iii) review problems encountered during implementation and the effectiveness of measures to resolve them, by the borrower, EA, and ADB; (iv) assess whether the borrower, EA, and ADB monitored progress effectively in comparison with quantifiable and monitoring targets; (v) reevaluate the financial and economic performance of the Project at its initial stage of operation and compare with the qualified indicators in the design and monitoring framework and Project Performance Report; (vi) assess the Project’s transition to operations, and identify any remedial measures needed; (vii) assess future operation and maintenance schedules to ensure sustainability of the Project; (viii) recommend any other steps that the borrower and EA need to take to ensure the Project’s sustainable operation; (ix) assess the performance of the monitoring and evaluation system established for the Project and reexamine the indicators selected for monitoring operations and assessing development impact; (x) assess significant environmental and poverty reduction impacts (including socio-cultural impacts where applicable) of the Project, and evaluate the implementation and effectiveness of any environmental control measures,

36 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-

Sector-Landscape.rar.

http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector-Landscape.rar�

http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector-Landscape.rar�

57

resettlement plans, and poverty reduction measures; and (xi) assess whether the immediate development objective has been met and the likelihood of attaining long-term development goal.

D. Reporting

112. The EA 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 six months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the EA, together with the associated auditor's report, should be adequately reviewed.

E. Stakeholder Communication Strategy

113. During the early implementation phase of the Project, a communication strategy and communication plan will be developed by PIU based on Table 22 below, which indicates the types of information, responsibility, target audience, frequency/timing, and means of communication.

58

Table 22: Stakeholder Communication Strategy Information to be communicated Responsibility Target audience Frequency/timing Means of Communication

Report and Recommendation of the President (RRP) with linked documents

ADB ADB, Government of PNG, NMSA, civil society, private sector, development partners, and general public

Once ADB website

Project performance report and project information document

ADB ADB, Government of PNG, NMSA, civil society, private sector, development partners, and general public

Every quarter ADB website

Quarterly reports NMSA PIU ADB, Government of Papua New Guinea, NMSA staff

Every quarter Reports

Procurement related information

NMSA Bidders and general public As per procurement plan NMSA website, newspaper (as per procurement guidelines)

Land access for navaids on private, state and customary land

NMSA Land owners As per the Land Acquisition and Resettlement framework

Negotiated lease agreements, or land titles; landowner meetings

Potential environmental and social impact during construction period

NMSA Local communities near navaids, women’s and church groups, provincial and local authorities, Department of Environment & Conservation, and contractor

Before and during project construction, and during maintenance visits

Various: Information brochures, consultations radio ‘tok save’, local press

Navaid and AIS information and markings

NMSA General public, fishing communities, mariners, dinghy operators, ship operators, coastal communities, and Provincial authorities, including PLCs

Before the navaid construction starts and after the construction is completed

NMSA website, mariners’ notice, markings on navaids, information in NMSA regional offices, community meetings

Water safety information NMSA, Ministry of Education

Principals, primary school teachers, and students, dinghy and small craft operators, the general public

Teachers workshops: Once in each region Public campaign ongoing over life of project

Ministry of Education notices, teachers’ workshops, Teachers’ Water Safety Resource Manual; radio, TV, and press

Monitoring of navaids/ reporting of light outages

CLCs, PLCs, NMSA

Shipping operators and mariners, fishermen, navaids contractor, provincial authorities

When navaids fail Mobile phone messages; radio ‘tok save’

ADB = Asian Development Bank, AIS = automatic identification system, CLC = Community Lighthouse Committee, NMSA = National Maritime Safety Authority, PIU = project implementation unit, PLC = Provincial Lighthouse Committee.

59

X. ANTICORRUPTION POLICY

114. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.37 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.38

115. To support these efforts, relevant provisions are included in the loan agreement/regulations and the bidding documents for the Project. A. Anticorruption Measures 116. In accordance with ADB requirements, a governance risk assessment in the areas of public financial management, procurement and anticorruption was undertaken and significant risks and associated mitigating measures identified in each. In addition, risks and associated mitigating measures in human resource management and project implementation were identified. Refer to the risk assessment and risk management plan.39

117. As identified in the risk assessment and risk management plan certain anticorruption safeguards have, or will be, incorporated into the project to mitigate the risk of diversion of funds and to enhance and strengthen governance, accountability and transparency. 118. Project website. A project website will be established within the existing NMSA website where the borrower will disclose key project related information including the audited project financial accounts, project progress, and procurement activities including the publishing of shortlists, invitation for bids and contract awards. 119. Supervision consultants. Supervision consultants will monitor civil works and operational activities. 120. Audit requirements. As indicated above, contracts financed from ADB funds will include provisions specifying the right of ADB to audit and examine the records and accounts of all contractors, suppliers, consultants and other service providers. In addition, contracts, project accounts and financial statements will be independently audited and forensic audits will be conducted of suspected corruption cases. An internal audit of the project shall be included in the work plan of the internal audit unit of NMSA. 121. Ombudsman. The existing PNG Ombudsman institution may be called upon to investigate any irregularities or complaints. 122. Grievance redress mechanism. Within 3 months of the effective date, the project implementation staff shall prepare a grievance redress mechanism, acceptable to ADB, and appoint an officer to receive and resolve complaints or grievances or act upon reports from stakeholders on misuse of funds and other irregularities, including relating to interactions with communities. The project implementation staff shall inform stakeholders of their right to submit complaints or grievances relating to the project.

37 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf. 38 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp. 39 Risk Assessment and Risk Management Plan (accessible from the list of linked documents in Appendix 2).

http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf�

http://www.adb.org/integrity/unit.asp�

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XI. ACCOUNTABILITY MECHANISM

123. 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 and through the grievance redress mechanism established by NMSA for this Project. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.40

124. A procedure for managing complaints and problems will be established by the government to: (i) review and redress grievances and complaints of project stakeholders in relation to the Project, any service provider, or any person responsible for carrying out the Project; (ii) set the threshold criteria and procedures for handling such grievances, for proactively addressing them, and for notifying stakeholders about the mechanism or course of action chosen; and (iii) maintain the records on the above.

40 For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

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

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XII. RECORD OF PAM CHANGES

125. 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.

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