Facility Administration Manual: India, Sustainable …...of coastline is facing erosion; about 530 km are prone to erosion and 330 km require protection. At the current rate of seawall

Facility Administration Manual Project Number: 40156 Loan Number:

Proposed Multitranche Financing Facility India: Sustainable Coastal Protection and Management Investment Program

CONTENTS Page

I. PROJECT DESCRIPTION 1 A. Rationale 1

II. IMPLEMENTATION PLAN 3 A. Program Readiness Activities 3 B. Overall Program Implementation Plan 4

III. PROJECT MANAGEMENT ARRANGEMENTS 6 A. Project Stakeholders – Roles and Responsibilities 6 B. Key Persons Involved in Implementation 7 C. Program Organization Structure 8

IV. COSTS AND FINANCING 13 A. Cost Estimates by Expenditure Category 13 B. Allocation and Withdrawal of Loan Proceeds 13 C. Expenditure Accounts by Financiers 15 D. Detailed Costs by Component 23 E. Expenditure Cost Estimated by Year 26 F. Disbursement S-curve 30 G. Fund Flow Diagram 30

V. FINANCIAL MANAGEMENT 32 A. Finance and Administration 35 B. Risk Analysis 38 C. Disbursement 39 D. Accounting 40 E. Auditing 40

VI. PROCUREMENT AND CONSULTING SERVICES 40 A. Advance Contracting and Retroactive Financing 40 B. Procurement of Goods, Works and Consulting Services 41 C. Consulting Services 41 D. Procurement Plan 42 E. Indicative Outline of Consultant's Terms of Reference 46

VII. SAFEGUARDS 51

VIII. GENDER AND SOCIAL DIMENSIONS 51

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 52 A. Project Design and Monitoring Framework 52 B. Monitoring 58 C. Stakeholder Communication Strategy 60

X. ANTICORRUPTION MEASURES 61

XI. ACCOUNTABILITY MECHANISM 61

XII. RECORD OF FAM CHANGES 61

Figure 1: Tranche 1 Implementation Schedule ............................................................................................5 Figure 2: Program Organization and Implementation Structure .................................................................11 Figure 3: Tranche 1 Project Disbursement S Curve ...................................................................................30 Figure 4: Fund Flow Mechanism for Imprest Fund Procedure ...................................................................31 Figure 5: Financial Management Organogram ...........................................................................................36

Table 1: Program Readiness Activities .........................................................................................................3 Table 2: Project Investment Plan ................................................................................................................13 Table 3: Financing Plan ..............................................................................................................................13 Table 4: Allocation and Withdrawal and Loan Proceeds ............................................................................14 Table 5: Three States- Expenditure by Financier (Whole Program) ………………………………………. 16 Table 6: Maharashtra Expenditure by Financier (Whole Program)….…………………… ………………….17 Table 7: Goa- Expenditure by Financier (Whole Program).........................................................................18 Table 8: Karnataka- Expenditure by Financier (Whole Program)……………………………………………..19 Table 9: Total Two States- Expenditure by Financier (Project 1) ...............................................................20 Table 10: Maharashtra- Expenditure by Financier (Project 1) ...................................................................21 Table 11: Karnataka- Expenditure by Financier (Project 1)........................................................................22 Table 12: Total Two States- Detailed Cost Estimates by Components (Project 1)………………………….23 Table 13: Maharashtra- Detailed Cost Estimates by Components (Project 1) ...........................................24 Table 14: Karnataka- Detailed Cost Estimates by Components (Project 1)...............................................25 Table 15: Total Three States- Estimated Expenditure Accounts by Year (Whole Program)......................26 Table 16: Maharashtra- Estimated Expenditure Accounts by Year (Whole Program) ...............................27 Table 17: Goa Estimated Expenditure Accounts by Year (Whole Program) ..............................................28 Table 18: Karnataka- Estimated Expenditure Accounts by Year (Whole Program) ...................................29 Table 19: Financial Management Assessment Summary – Maharashtra Maritime Board ........................32 Table 20: Financial Management Assessment Summary – Water Resources Department, Goa..............33 Table 21: Financial Management Assessment Summary – Public Works, Ports and Inland Water Transport Department, Karnataka ..............................................................................................................34 Table 22: Risk Assessment and Mitigation Measures ................................................................................38 Table 23: Project Management & Design Consultancy Inputs (Project 1)..................................................47 Table 24: Design and Monitoring Framework…………………………………………………………………...53 Table 25: Sample Table for Recording FAM Changes..…………….………………………………………… 61

Facility Administration Manual Purpose and Process

The facility administration manual (FAM) describes the essential administrative and management requirements to implement the investment program on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The executing Agencies (the SEAs) will be the respective States acting through the Maharashtra Maritime Board (in case of Maharashtra), Department of Water Resources (in case of Goa), and the Public Works, Ports and Inland Water Transport Department (in case of Karnataka). The SEAs 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 SEAs of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures At Loan Negotiations, the Government and ADB have agreed to the FAM consistent with the Framework Financing Agreement (FFA), and the Loan Agreement for the first project. Such agreements are reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the FAM on one hand, and the FFA and the Loan Agreement on the other hand, the provisions of the FFA and the Loan Agreement shall prevail.

After ADB Board approval of the investment program's report and recommendations of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the FAM.

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ABBREVIATIONS

ADB Asian Development Bank CESI community and economic support initiatives CIMU Coastal Information Management Unit CWC Central Water Commission CWPRS Central Water and Power Research Station EIA environmental impact assessment FAM facility administration manual FFA framework financing agreement FM financial management ICB international competitive bidding MFF multitranche financing facility MIS management information system MOEF Ministry of Environment and Forests MOWR Ministry of Water Resources NGO nongovernmental organization PDSC Planning and Design Support Consultancies PMDC project management and design consultants PMU program management unit PoE panel of experts PPMS project performance and management system PPP public private partnership PSC program steering committee SEA state executing agency SGIA Second Generation Imprest Account

I. PROJECT DESCRIPTION

A. Rationale1

1. Development Problems. The coastal zone is a key part of India with about 20-25% of its population living within 50 km of the coast with 70% of them residing in rural areas. India has a coastline of about 7,525 km, including 5,425 km along the nine national coastal states of the mainland and 2,100 km of the union territories. All the coastal states and territories are affected by coastal erosion which has intensified including the states of Goa, Karnataka, and Maharashtra- on which the Investment Program will focus. In these states, 50% of the 1,100 km of coastline is facing erosion; about 530 km are prone to erosion and 330 km require protection. At the current rate of seawall and other constructions along the shorelines, the prime beaches could become almost extinct in the next 20 years. The rise in sea levels and the likely increased frequency and intensities of storms will aggravate the erosion problem with serious economic and environmental consequences for the coastal states.

2. Coastal erosion is caused by both natural (such as, storms and currents) and anthropogenic (including dams, river bed quarrying, harbors, and inlets stabilization) effects. In India, there are numerous examples where human activities have contributed to or caused coastal erosion. These include change in sediment supply through dredging, river damming and sand mining or the construction of littoral barriers such as groins, jetties or ports. Beach scour can be caused by seawall construction and erosion rates are also affected by the loss of vegetation on the shoreline. Sediment traps such as dredged navigational channels and alteration to wave processes caused by jetties and ports also play a role. Urbanization of the coast has also exacerbated coastal erosion.

3. Development Opportunities. The coastal protection strategy in India is synonymous with the objective of protection of the land and overall economic growth. The concept of protecting the beach and the environment are relatively new concepts. The most frequently applied methods for coastal protection have been through the use of hard structures such as seawalls or groins. Long term plans to manage coastal erosion are available. However resource constraints result in the measures being undertaken to target the more vulnerable sections of the coasts and as local emergency measures. Such interventions provide mostly land protection. Seawalls and groins continue to be preferred measures which though do not necessarily address the root cause of the problem. As the pressure on the coastal zone due to human-induced activities as well as relative sea level rise keeps expanding, there is an urgent need to find sustainable solutions for coastal protection.

4. There is a general awareness of the impacts of hard structures. The soft solutions such as artificial reefs, beach nourishment and management, dune management, mangroves etc. are untried on a large scale. There is a widespread interest and realization of a need to change to softer and appropriate solutions that would require an integrated program of awareness, training, capacity building, policy measures, and other support initiatives.

5. The benefits to coastal projection are enormous to the coastal economies. Interventions to prevent coastal erosion and protect the beaches as well as adjoining land will benefit port operators and users, fishermen, tourism operators, beach users, farmers and other property 1 ADB. 2007. Technical Assistance to India for Sustainable Coastal Protection and Management. Manila (TA 4965).

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owners and local communities living near to or depending on the coast. In addition, introduction and development of new technologies have lower environmental and social impacts than the rock walls that are traditional solution to coastal erosion problems in India. When solutions include the construction of artificial reefs, there are benefits for beaches, land and property behind beaches, tourism and artisanal fisheries since reefs provide a beneficial habitat for fish and other marine species. The introduction of these new technologies for coastal protection leads to solutions that not only protect the coastline from erosion but enhance income generation opportunities for communities living near the affected areas.

6. The mandate for coastal erosion mitigation is typically entrusted to the state level coastal division, a part of a larger state department with a much broader and largely technical mandate. The technical and human-resource capacity of the coastal divisions is limited with minimal experience with modern and sustainable coastal protection and management measures. Coordination of various coastal protection initiatives, both at the central level as well as between central and state agencies is lacking. Integrated management and the use of environmentally and socially acceptable solutions for coastal protection require effective local level community participation. The processes for these are presently very limited and new methodologies will have to be developed to meet these requirements. Maintenance is a key issue; a high level of local support for maintenance is required in some areas, such as, beach stabilization work. Development of protection works potentially open up a number of opportunities where the communities and other stakeholders themselves could, with some initial support, help realize potential financial benefits.

7. Investment Plan. The three states have envisaged an investment plan of about $700 million for the coastal protection and management over the medium-term. Key areas for investment strategy includes (i) addressing the immediate coastal erosion needs, (ii) fostering natural protection measures through development and planting of dunes, planting of mangrove or other trees for protection or shelter, (iii) considering wider coastal protection issues including water quality, navigational entrances, dredging, reclamation, and training of river and drain mouths, and (iv) fostering private sector participation in coastal protection and management. An adjustment to the long-list based on prioritization of sub-projects has been carried out. All sub-projects to be included under the Investment Program will have to meet the selection criteria, namely, (i) erosion status; (ii) technical, institutional, and economic feasibility; (iii) compliance with safeguards requirements; (iii) endorsement by stakeholders including agreements to support the project; and (iv) state priority.

8. A road map (a sector strategy), comprising the policy and institutional actions and an investment program has been prepared to support the states to move toward integrated and sustainable coastal protection and management. The objective of the road map is to reduce coastal erosion and instability in the states. The road map envisages actions to protect and manage shorelines of the three states meeting the needs of the communities and other stakeholders, while maintaining the environmental integrity of the shoreline.

9. Impact. The impact of the Investment Program will be improved income and reduced poverty of the coastal communities in the sub-project areas of the coastal States of Goa, Karnataka, and Maharashtra

10. Outcome. The outcome of the Program will be protected and managed shorelines in the three States meeting the needs of stakeholders and the environment

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11. Outputs:

(i) Sustainable Plans and Management for Shorelines Developed (ii) Coastal Erosion and Instability Reduced (iii) Enhanced Capacity for Shoreline Planning and Development

II. IMPLEMENTATION PLAN

A. Program Readiness Activities

12. The following readiness activities are in now place in early June 2010.

(i) Project accepted (ii) Community consultations completed (iii) Completion and approval of the detailed design of Project 1 (iv) Environmental Clearance (v) SEIA Public Disclosure (vi) CWPRS Design Approval (vii) Finance Department Clearance (viii) Agreed Procurement Plan (ix) Consultant recruitment and procurement process initiated

13. The status and program are summarized in Table 1 below.

Table 1: Program Readiness Activities

Months

Indicative Activities Mar Apr May Jun Jul Aug Sep Oct

Who responsible

Establishment of the PMU with key staff in place.

√ States

Government counterpart funds allocation

√ States

Advance contracting actions, including for retroactive financing

√

States

ADB Board approval √ ADB

Loan signing √ DEA, States

Issuance of legal opinion √ DEA, States

Loan effectiveness √ Government

Source: Information from states and Asian Development Bank (ADB)

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14. For the subsequent projects, the detailed design, safeguard documents will be prepared under Project 1. For each subsequent tranches, the SEA in each state will provide (i) a project appraisal report, including technical, economic, financial, environmental, and social assessments; and (ii) a PFR. The project report will be prepared in accordance with the criteria and procedures stated in Schedule 4 of the FFA and other related requirements of the Government and ADB. After appraising each tranche for technical and economic feasibility and compliance with safeguard requirements, the SEA will submit to ADB a summary appraisal report to be agreed between ADB and the SEA. ADB will then undertake due diligence in accordance with its relevant policies and procedures, and approve the appraisal, subject to any amendments. If required by ADB, the SEA will amend the PFR and submit it to ADB for approval on or before the due date of the PFR.

B. Overall Program Implementation Plan

15. The 9-year Investment Program is scheduled for completion by 31 December 2019. The Project 1 will be completed by 30 June 2014. The detailed implementation plan for Tranche 1 is shown in Figure 1.

16. The overall implementation plan is required to be updated bi-annually by the State Executing Agency together with ADB. The updated draft implementation plan will be submitted to ADB in month 4 and 10 of the preceding year for no objection, a response on which will be provided within 1 month of submission of the plan.

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Figure 1: Tranche 1 Implementation Schedule

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Stakeholders – Roles and Responsibilities

Project Stakeholders Management Roles and Responsibilities

State Executing Agencies establishing the PMUs with the required staffing; recruiting PMDC consultants; preparation of comprehensive shoreline plans; planning, design and preparation of bid documents for T2

and T3 projects finalizing and issuing bidding documents, and contract

awards for T1 projects timely provision of agreed counterpart funds for project

activities; monitoring and evaluation of project activities and outputs,

including periodic review, preparation of review reports reflecting issues and time-bound actions taken (or to be taken);

involving beneficiaries and civil society representatives in all stages of project design and implementation;

public disclosure of project outputs; quality assurance of works, and services of consultants and

counterpart staff; establishing strong financial management system and

submitting timely withdrawal applications to ADB, conducting timely financial audits as per agreed timeframe and taking recommended actions;

complying with all loan covenants (sector reforms, social and environmental safeguards, financial, economic, and others);

preparing regular periodic progress reports, and project completion reports and their timely submission to ADB;

ensuring projects' sustainability during post implementation stage and reporting to ADB on the assessed development impacts;

allocating and releasing counterpart funds; and endorsing to ADB the authorized staff with approved

signatures for WAs processing.

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Project Stakeholders Management Roles and Responsibilities

Asian Development Bank assist the SEA and their PMU in providing timely guidance at each stage of the project for smooth implementation in accordance the agreed implementation arrangements;

review all the documents that require ADB approval; conduct periodic loan review missions, a mid-term review, a

completion mission for each project under the MFF, and a overall program completion mission;

ensure compliance of all loan covenants (sector reforms, social and environmental safeguards, financial, economic, and others);

timely process withdrawal applications and release eligible funds;

ensure the compliance of financial audit recommendations; regularly update the project performance review reports with

the assistance of SEA; regularly post on ADB web the updated project information

documents for public disclosure, and also the safeguards documents as per disclosure provision of the ADB safeguards policy statement

Ministry of Finance signing the FFA and the Loan Agreement for each Project;

monitoring of the investment program implementation and providing respective coordination and facilitation;

processing and submitting to ADB any request, when required, for reallocating the loan proceeds.

Ministry of Water Resources including CWC and CWPRS

coordinate and provide liaison with SEA support the coordination activities with related central

Government Agencies including MoEF support the training and institutional development activities provide coordination and liaison with the parallel MoEF

Integrated Coastal Management Project. support initiatives to create awareness of the project

activities at central Government as well as in other coastal states.

Ministry of Environment and Forests

provide the key environmental linkages with the projects provide linkages and liaison with the MoEF Integrated

Coastal Management Project to support the processes of environmental clearances of

proposed sub projects.

B. Key Persons Involved in Implementation

Executing Agencies

GOA KARNATAKA MAHARASHTRA State Executing Agency

The Chief Engineer, DEPARTMENT OF WATER RESOURCES 2nd Floor, Junta House (Annex) Panaji – Goa 403001 India

Director PUBLIC WORKS, PORTS AND INLAND WATER TRANSPORT DEPARTMENT DIRECTORATE OF

Chief Executive Officer MAHARASHTRA MARITIME BOARD Govt. of Maharashtra Undertaking,(Home Department)

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Tel: +832 2224339/ 2223506 Fax :+832 2223506

PORTS & INLAND WATER TRANSPORT Baithkol, Karwar, Uttara Kannada District Karnataka India. Tel: +91 8382 221494, 221488 Fax: +918382 228918 e-mail: [email protected]

Indian Mercantile Chambers, 3rd floor, Ramjibhai Kamani Marg, Ballard Estate, Mumbai-400 001. Tel: +9122 22611734 Fax: +9122 22614331 e-mail: [email protected]

Program Management Unit

Project Director Project Management Unit, DEPARTMENT OF WATER RESOURCES 2nd Floor, Junta House (Annex) Panaji – Goa 403001 IndiaTel: +832 2224339/ 2223506. Fax : +832 2223506

Project Director Project Management Unit. DIRECTORATE OF PORTS & INLAND WATER TRANSPORT, Government of KarnatakaOld Mangalore Port. Mangalore Karnataka India Tel: +91 824 2420374 Fax: +91824 2420374 e-mail: [email protected]

Project Director Project Management Unit Chief Executive Officer MAHARASHTRA MARITIME BOARD Indian Mercantile Chambers, 3rd floor, Ramjibhai Kamani Marg, Ballard Estate, Mumbai-400 001. Maharashtra, India. Tel: +9122 22612143 Fax: +9122 22614331 e-mail: [email protected]

Asian Development Bank Division Director Takashi Matsuo

Director Agriculture, Natural Resources, and Social Services Division (SANS) South Asia Department Asian Development Bank 6 ADB Avenue Mandaluyong City, 1550, Metro Manila, Philippines Tel: +632 632- 5579 email: [email protected]

Mission Leader Rezaul K. Khan Natural Resources Economist Agriculture, Natural Resources, and Social Services Division (SANS) South Asia Department Asian Development Bank 6 ADB Avenue Mandaluyong City, 1550, Metro Manila, Philippines Tel: +632 632- 4846 email: [email protected]

C. Program Organization Structure

1. Organizational set-up and functions

17. Each State will establish a state Program Steering Committee (PSC) to provide project oversight, policy guidance, facilitate interdepartmental coordination among all relevant State departments and agencies, and help institutionalize effective mechanisms to plan, improve and manage coastal management initiatives. The PSC will also be responsible for coordination with the central level Ministry of Water Resources (MOWR), Central Water Commission (CWC) and

mailto:[email protected]






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other ministries as required including Finance, Water Resources, Environment and Forests, Agriculture (Fisheries), Science and Technology, Earth Sciences, Defense (Hydrography office), and Home Affairs. The PSC will also ensure that the projects under the Facility follow the requirements of the central agencies referred including the national strategies and approvals as required.

18. The PSC will be chaired by the State Executing Agency's (SEA's) Departmental Secretary with the following as members: the Secretaries of departments in charge of finance, water resource development, port and fisheries development, environment, urban development, rural development and tourism, (and in case of Maharashtra the chief executive officer of the Maharashtra Maritime Board); representatives of the district level administration, representatives of the civil society. The Project Director of each PMU will serve as Secretary of the PSC. The PSC will meet as required but at least twice every year to (i) review project progress, (ii) approve subproject selection and, (iii) act on any issues in need of resolution at the state level.

19. Each State will have an Executing Agency (SEA) for the Facility, with responsibility for overall project management and implementation. These will be the: (i) Goa Department of Water Resources for Goa; (ii) Public Works, Ports and Inland Water Transport Department for Karnataka and (iii) Maharashtra Maritime Board for Maharashtra. To carry out its responsibility, each SEA will establish a Program Management Unit (PMU) with the following roles: (i) preparation of an overall implementation plan and annual budget; (ii) overall interagency coordination; (iii) recruitment of consultants/NGOs and award of procurement and consulting contracts; (iv) subproject planning and appraisal; (v) subproject safeguards document preparation, state agencies clearance coordination and safeguard plans implementation; (vi) project financial management; (vii) consolidation, review, and submission of regular progress and financial reports to the PSC and ADB; (viii) preparation of the periodic financing request for tranches (ix) establishment of a coastal management information system (MIS) and; (x) monitoring and evaluation of project outputs and results.

20. The Project Management Units as established by each SEA (the PMU) will be headed by a full time Project Director. The Project Director will report to the SEA Departmental Secretary (and in case of Maharashtra to the Chief Executive Officer of the Maharashtra Maritime Board). The PMU will be staffed by full time Deputy Directors for (i) technical matters; (ii) finance and administration; and (iii) interdepartmental coordination and planning. The PMU will have a multidisciplinary team comprising staff deputed from the SEA and associated line departments and/or recruited from the market. The PMU will be assisted by the Project Management and Design Consultants. The PMU will also be supported by a Panel of Experts comprising international renowned consultants.

21. Coastal Information Management Unit (CIMUs) will be established by July 2012 by each State. These CIMUs will be established as a separate cell within the SEAs. The CIMU will have the responsibility to take over and manage the Coastal Management Information Systems (MIS) established by the PMU at State level and liaise with the MIS to be established at the Central Water Commission (CWC). The databases will source information from National and State level institutions and other specialized agencies including MOEF. It will establish effective mechanisms for sharing information with the various state and district level coastal agencies and stakeholders. The maintenance of the MIS will be a key responsibility of the CIMU at State level.

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22. Each SEA will ensure that Shoreline Management will be undertaken by involving local bodies as stakeholders. Local community and beneficiaries will support the coordination and monitoring of the project during the implementation and would take on the responsibility for the management and maintenance of the projects after the completion of the capital works. The stakeholders will include women's participation along with CBO's and other stakeholders and with required project support and resources to ensure they effectively represent the shoreline stakeholders and have capacities to take on their full management responsibilities.

23. The PSC in the case of Karnataka will be further guided by the Technical Expert Committee (TEC) as established by the State. The TEC is chaired by experienced senior coastal expert from a technical government department with members being Chief Engineers from water resources, irrigation and public works departments and heads of Karnataka relevant technical institutes. The TEC supports and has the mandate for review of shoreline planning, subproject feasibility studies and detail design technical approvals, including the environmental safeguards. The TEC will also be supported by a Panel of Experts. Further, the State has established a State Empowered Committee (SEC) that meets periodically throughout to guide in project implementation.

2. Implementation procedures and arrangements

24. In implementing the program component 1: Sustainable Plans and Management for shoreline developed, the following procedures will be followed.

(i) Participatory long term coastal management plans will be developed for successive Tranche 3 and 4 subprojects identification. The PMU planning and coordination unit will be in charge of the overall planning process with assistance of the PMDC. The sub-projects will have to be selected in accordance with the criteria as stipulated in schedule 4 and approved by the State steering committee.

(ii) A coastal MIS, will be established in each PMU to support the planning process

and management and provide standardized and comparable information to the central agencies. The MIS database will be created in each PMU by the PMDC and maintained by the PMU. It will be gradually transferred to the CIMU once established.

25. In implementing the program component 2: coastal erosion and instability reduced, the following procedures will be followed.

(i) Feasibility studies and detail designs for all four subprojects of tranche 1

investment have been completed during the preceding project preparatory technical assistance (PPTA). This does not include however the detailed design of the realignment of Ullal sub-projects breakwaters that will need to be undertaken during the first year of the tranche one execution. Pre-feasibility studies, feasibility studies and detail design of tranche 1 Ullal breakwaters and subsequent tranche 3 and 4 subprojects will be undertaken by the PMDC under the overall supervision of the PMUs.

(ii) Tendering and implementation of coastal protection works and anti erosion

activities will be undertaken by the PMUs. Works tender documents for the 4

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subprojects of tranche 1 (excluding Ullal breakwater) have been finalized by the PPTA. Tender documents for Ullal breakwaters realignment and subsequent tranche 3 and 4 subprojects will be prepared by the PMDC under the overall guidance of the PMUs. The PMUs will be responsible for complying with ADB's procurement processes.

(iii) Communities initiatives support will exclusively be provided to enhance the

economic or social benefits of a subproject or eventually mitigate the potential negative impact on a specific stakeholder group. The community initiatives activities will be executed by the PMUs with support from the PMDC).

(iv) For the first tranche, the beneficiary/private sector initiatives are restricted to the

shoreline maintenance. The identification and development of PPPs will further be undertaken by the PMU with the support of the PMDC and the state PPP cells.

26. In implementing the program component 3: enhanced capacity for shoreline planning and management, the following procedures will be followed.

(i) PMDC will prepare specific plans and programs based on the capacity building and training programs as identified under the PPTA.The beneficiaries of the training will include SEA and PMU staff as well as staff from the district administration, the Panchayat, state and central agencies.

(ii) The development of States policies and plans for coastal protection and

management will be carried out by the PMUs with support from the PMDC.

27. The proposed program organizational structure is shown in Figure 2.

Figure 2: Program Organization and Implementation Structure

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Note: For Karnataka only there will be in addition an a State Empowered Committeewho will be authorised to take financial and decisions

as well as State Technical Expert Committeeto assess technical aspects of planning and design

CENTRAL LEVEL ‐

COORDINATION

Ministry of FinanceDepartment of Economic

Affairs

ADB

Ministry of Environment and Forest,

INFORM

STATELEVEL

Project

Management and DesignConsultants

Project

Director

PROJECT MANAGEMENT UNITSUPPORT

Central Water Commission

State Program Steering Committee

SEA, Secretaries Finance, Water resources, Ports

and harbours, fisheries, urban rural development

and tourism, representatives from District government and civil society

REPORT TO

GUIDANCECLEARANCE

VALIDATE

SUBPROJECT

DESIGNS &

COORDINATION

INFO

GUIDANCE

State Executing AgencyCoastal InfrastructureManagement Unit

INFORM PROVIDE M&E

DATA

TECHNICAL FINANCE &

ADMIN

COORDINATION

Central Water and Po er w

Research Station

Project Panel of Experts

TECHNICAL SUPPORT FOR

DESIGN

VALIDATION

OVERSIGHT OF DESIGNS

AND CONSTRUCTION

Shoreline Management

Communities and Stakeholders at Sub Project Sites

COORDINATION

REPORT TO

GUIDANCE

Water Resources Department, NATIONAL LEVEL COORDINATION

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IV. COSTS AND FINANCING

A. Cost Estimates by Expenditure Category

1. Program Investment Plan

28. The project investment cost is estimated at $404.6 million including taxes and duties of $ 35.5 million to be financed by the Government. The investment and financing plans are summarized in Table 2 and Table 3.

Table 2: Project Investment Plan

($million)

Item Amount

A. Base Costa

1. Planning and Design 19.8

2. Coastal Erosion and Instability Reduction 309.3

3. Capacity Development 19.7

Subtotal (A) 348.8

B. Contingenciesb 41.9

C. Financing Charges During Implementationc 13.9

Total (A+B+C) 404.6 a) Base costs in mid 2009 prices b) Includes price contingencies and physical contingencies at 10% of base costs on civil works, materials, supplies and equipment. c) Interest during implementation at the LIBOR 5 year US$ swap rate plus a margin.

Table 3: Financing Plan

Source Total ($ million) %

250.0 61.8 Asian Development Bank 119.8 29.6 State Governments

Other Sources including Private Sector 34.8 8.6

Total 404.6 100.0

B. Allocation and Withdrawal of Loan Proceeds

29. The allocation and withdrawal of funds under all the categories under Project 1 for the three states is shown in Table 4.

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Table 4: Allocation and Withdrawal of Loan Proceeds

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (Sustainable Coastal Protection and Management Investment Program - Project 1)

CATEGORY ADB FINANCING

Total Amount Allocated for ADB Financing ($)

Number Item Category Subcategory

Percentage and Basis for Withdrawal from the Loan Account

1 Works 36,838,000 91 percent of total expenditure claimed

1A Karnataka 31,514,000

1B Maharashtra 5,324,000

2 Equipment 550,000 100 percent of total expenditure claimed*

2A Karnataka 273,000

2B Maharashtra 277,000

3 Training 648,000 100 percent of total expenditure claimed*



4 Studies and Surveys 538,000 100 percent of total expenditure claimed*



5 Community Initiatives 766,000 100 percent of total expenditure claimed*



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6 Consulting Services 7,255,000 100 percent of total expenditure claimed*


6B Maharashtra 3,301,000

7 Unallocated 4,960,000



Total 51,555,000

*Exclusive of local taxes and duties C. Expenditure Accounts by Financiers

30. Breakdown of the expenditure accounts by financier for the whole investment program are given in following tables:

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Table 5: Three States: Expenditure by Financier (Whole Program)

TOTAL 3 STATES Government Asian Development

Bank

Other Sources including Private

Sector Total

Whole Program Amount % cost

category

Amount % cost

category Amount % cost

category

Amount %

Taxes and

Duties

$'000

1. Civil works

78,735 28.0

175,262 62.3

27,373 9.7

281,370 67.5 27,294

2. Equipment and Supplies

5,598 22.8

16,465 67.1

2,492 10.1

24,555 6.1 5,598

3. Training

123 9.8

1,123 90.2.

- 0.0

1,246 0.3 123

4. Community Initiatives

238 6.6

3,043 84.2

333 9.2

3,614 0.9 180

5. Studies & Surveys

181 12.3

1,299 87.7

- 0.0

1,480 0.4 181

6. Consulting Services

2,155 8.7

22,696 91.3

- 0.0

24,851 6.1 21,55

7. PMU Staff Costs

11,406 100.0

- 0.0

- 0.0

11,406 2.8 0

8. Sub-project maintenance

- 0.0

201 82.3

43 17.7

244 0.1 0

Total Base Costs

98,436 28.2

220,089 63.1

30,241 8.7

348,766 86.2 35,531 Price and Physical Contingencies

7,484 17.9

29,910 71.4

4,516 10.8

41,910 10.4 0

Financing Charges

13,910 100.0

- 0.0

- 0.0

13,910 3.4 0

Total Disbursement

119,830 29.6

250,000 61.8

34,757 8.6

404,587 100.0 35,531

Note: Some numbers may not tally due to rounding.

Table 6: Maharashtra- Expenditure by Financier (Whole Program)

MAHARASHTRA Government Asian Development

Bank


Sector Total


category

Amount % cost

category

Amount % cost

category Amount %

Taxes and

Duties

$'000

1. Civil works

34,912 30.6

66,263 58.2

12,769 11.2

113,944 69.7 11,394


2,548 22.8

7,478 66.8

1,166 10.4

11,192 6.8 2,548

3. Training

50 10.0

453 90.0

- 0.0

503 0.3 50


99 6.7

1,220 82.7

156 10.6

1,475 0.9 75


61 12.3

437 87.7

- 0.0

498 0.3 61


825 8.9

8,420 91.1

- 0.0

9,245 5.7 825

7. PMU Staff Costs

3,931 100.0

- 0.0

- 0.0

3,931 2.4 -


-

-

-

- -

Total Base Costs

42,426 30.1

84,271 59.9

14,091 10.0

140,787 86.1 14,953 Price and Physical Contingencies

3,454 19.9

11,762 67.8

2,138 12.3

17,354 10.6 -

Financing Charges

5,316 100.0

- 0.0

- 0.0

5,316 3.3 -

Total Disbursement

51,196 31.3

96,033 58.8

16,229 9.9

163,457 100.0 14,953


17

18

Table 7: Goa- Expenditure by Financier (Whole Program)

GOA Government Asian Development

Bank


Sector Total


category

Amount % cost


category Amount %

Taxes and

Duties

$'000

1. Civil works

6,789 26.9

16,633 66.0

1,784 7.1

25,206

58.5 2,419


510 23.4

1,514 69.4

159 7.3

2,183

5.1 510

3. Training

20 8.5

216 91.5

- 0.0

236

0.5 20


27 6.6

365 88.3

21 5.1

413

1.0 17


39 9.8

358 90.2

- 0.0

397

0.9 39


419 7.9

4,902 92.1

- 0.0

5,321

12.4 419

7. PMU Staff Costs

3,738 100.0

- 0.0

- 0.0

3,738

8.7 0.0


- 0.0

201 82.3

43 17.7 244

0.6 0.0

Total Base Costs

11,542 30.6

24,188 64.1

2,007 5.3

37,737

87.6 3,424

Price and Physical Contingencies

707 18.2

2,884 74.3

291 7.5

3,883

9.0 -

Financing Charges

1,445 100.0

- 0.0

- 0.0

1,445

3.4 -

Total Disbursement

13,693 31.8

27,073 62.9

2,299 5.3

43,065

100.0 3,424 Note: Some numbers may not tally due to rounding.

Table 8: Karnataka- Expenditure by Financier (Whole Program)

KARNATAKA Government Asian Development

Bank


Sector Total



category

Amount % cost

category

Amount %

Taxes and

Duties $'000

1. Civil works

37,067 26.1

92,383 64.9

12,814 9.0

142,264

71.8 13,525


2,547 22.8

7,474 66.8

1,166 10.4

11,187

5.6 2,547

3. Training

50 10.0

453 90.0

- 0.0

503

0.3 50


111 6.5

1,458 84.5

156 9.0

1,725

0.9 87


77 13.2

505 86.8

- 0.0

582

0.3 77


868 8.5

9,374 91.5

- 0.0

10,242

5.2 868

7. PMU Staff Costs

3,738 100.0

- 0.0

- 0.0

3,738

1.9 -


-

-

-

-

-

Total Base Costs

44,458 26.1

111,647 65.6

14,137 8.3

170,242

86.0 17,154

Price and Physical Contingencies

3,334 16.1

15,247 73.8

2,092 10.1

20,674

10.4 -

Financing Charges

7,149 100.0

- 0.0

- 0.0

7,149

3.6 -

Total Disbursement

54,941 27.7

126,894 64.1

16,229 8.2

198,064

100.0 17,154 Note: Some numbers may not tally due to rounding.

19

20

Table 9: Total Two States- Expenditure by Financier (Project 1) ($ ‘000)

Government Asian Development Bank Total

Amount % cost


category Amount %

Taxes and

Duties

1. Civil works 4,083 10.0 36,838 90.0 40,921 65.3 4,083

2. Equipment and Supplies 159 22.4 550 77.6 709 1.2 159

3. Training 74 10.2 648 89.8 722 1.2 74

4. Community Initiatives 41 5.0 766 95.0 807 1.3 41

5. Studies & Surveys 61 10.3 538 89.7 599 1.0 61

6. Consulting Services 446 6.0 7,255 94.0 7,701 12.3 446

7. PMU Staff Costs 2,876 100.0 - 0.0 2,876 4.6 -

8. Sub-project maintenance - 0.0 - - - - -

Total Base Costs 7,739 14.2 46,595 85.8 54,334 86.7 4.864 - - - -

Price and Physical Contingencies 41 0.81 4,960 99.2 5,001 7.9 -

Financing Charges 3,338 100.0 - 0.0 3,338 5.3 - - - -

Total Disbursement 11,118 17.7 51,555 82.3 62,673 100.0 4,864 Note: Some numbers may not tally due to rounding.

Table 10: Maharashtra- Expenditure by Financier (Project 1) ($ ‘000)

Asian Government Development Bank Total

Amount % cost


category Amount %

Taxes and

Duties

1. Civil works 962 15.3 5,324 84.7 6,286 44.5 962


3. Training 37 10.2 324 89.8 361 2.6 37


5. Studies & Surveys 27 10.3 235 89.7 262 1.9 27


7. PMU Staff Costs 1,474 100.0 - - 1,474 10.4 -

8. Sub-project maintenance - 0.0 - - - 0.0 -

Total Base Costs 2,806 22.4 9,725 77.6 12,531 88.7 1,332

Price and Physical Contingencies 21 2.6 810 97.4 831 5.9 -

Financing Charges 762 100.0 - - 762 5.4 -

Total Disbursement 3,589 25.4 10,535 74.6 14,124 100.0 1,332


21

22

Table 11: Karnataka- Expenditure by Financier (Project 1) ($ ‘000)

Government Asian Development Bank Total

Amount % cost


category Amount %

Taxes and

Duties

1. Civil works 3,121 9.0 31,514 91.0 34,635 71.3 3,121


3. Training 37 10.2 324 89.8 361 0.7 37


5. Studies & Surveys 34 10.1 303 89.9 337 0.7 34


7. PMU Staff Costs 1,402 100.0 0.0 0.0 1,402 2.9

8. Sub-project maintenance - 0.0 0.0 0.0 - 0.0

Total Base Costs 4,933 11.8 36,870 88.2 41,803 86.1 3,532

Price and Physical Contingencies 20 0.5 4,150 99.5 4,170 8.6 0.0

Financing Charges 2,576 100.0 - 0.0 2,576 5.3 0.0

Total Disbursement 7,529 15.5 41,020 84.5 48,549 100.0 3,532


D. Detailed Costs by Component

Table 12: Total Two States- Detailed Cost Estimates by Components (Project 1)

ITEM Planning &

Design

Coastal Protection & Management

Effective Institutions &

Project Management

% of Cost Category Total Cost Amount Amount

% of Cost

Category Amount

% of Cost

Category

A Investment Costs

1. Civil works 36,838 - 0.0% 36,838 74.9% - 0.0%

2. Equipment and Supplies 0.550 0.359 5.2% - 0.0% 0.192 2.2%

3. Training 0.648 - 0.0% - 0.0% 0.648 7.5%

4. Community Initiatives 0.766 - 0.0% 0.766 1.6% - 0.0%

5. Studies & Surveys 0.538 0.362 5.3% 0.097 0.2% 0.079 0.9%

6. Consulting Services 7.255 5.081 74.2% - 0.0% 2.174 25.3%

7. PMU Staff Costs 2.876 - 0.0% - 0.0% 2.876 33.5%

8. Sub Project Maintenance 0.000 - 0.0% - 0.0% - 0.0%

9. Taxes & Duties 4.863 0.491 7.2% 4.082 8.3% 0.289 3.4%

Subtotal A 54.334 6.293 91.8% 41.783 84.9% 8.211 95.6%

B Contingencies

1 Physical 4.161 0.126 1.8% 3.972 8.1% 0.063 0.7%

2 Price 0.840 0.060 0.9% 0.730 1.5% 0.050 0.6%

Subtotal B 5.001 0.186 2.7% 4.702 9.6% 0.113 1.3%

C Financing Charges During Implementation 3.338 0.373 5.4% 2.702 5.5% 0.264 3.1%

Total Project Cost (A+B+C) 62.673 6.852 100.0% 49.187 100.0% 8.588 100.0%

23

24

Table 13: Maharashtra- Detailed Cost Estimates by Components (Project 1)

MAHARASHTRA PROJECT 1 ($ million)

ITEM

Total Cost

Planning & Design Amount

% of Cost Category


Amount % of Cost Category

Effective Institutions & Project

Management Amount

% of Cost Category

A Investment Costs

1. Civil works 5.324 - 0.0% 5.324 68.4% 0.0%

2. Equipment and Supplies 0.277 0.183 6.0% 0.0% 0.094 2.9%

3. Training 0.324 0.0% 0.0% 0.324 9.9%

4. Community Initiatives 0.264 0.0% 0.264 3.4% 0.0%

5. Studies & Surveys 0.235 0.147 4.8% 0.049 0.6% 0.039 1.2%

6. Consulting Services 3.301 2.261 73.8% - 0.0% 1.040 31.7%

7. PMU Staff Costs 1.474 0.0% 0.0% 1.474 45.0%

8. Sub Project Maintenance - 0.0% - 0.0% 0.0%

9. Taxes & Duties 1.332 0.226 7.4% 0.959 12.3% 0.146 4.5%

Subtotal A 12.531 2.818 92.0% 6.596 84.74% 3.118 95.2%

B Contingencies

1 Physical 0.661 0.020 0.7% 0.631 8.1% 0.010 0.3%

2 Price 0.170 0.040 1.3% 0.090 1.2% 0.040 1.2%

Subtotal B 0.830 0.060 2.0% 0.721 9.26% 0.050 1.5%


Total Project Cost (A+B+C) 14.124 3.064 100% 7.783 100.00% 3.277 100%

Table 14: Karnataka- Detailed Cost Estimates by Components (Project 1)

KARNATAKA PROJECT 1 ($ million)

ITEM Planning & Design


Effective Institutions & Project

Management

% of Cost Category Total Cost Amount Amount

% of Cost Category Amount

% of Cost

Category

A Investment Costs

1. Civil works 31.514 0.0% 31.514 76.1% 0.0%

2. Equipment and Supplies 0.273 0.176 4.6% 0.0% 0.098 2.9%

3. Training 0.324 0.0% 0.0% 0.324 9.6%

4. Community Initiatives 0.502 0.0% 0.502 1.2% 0.0%

5. Studies & Surveys 0.303 0.215 5.7% 0.048 0.1% 0.040 1.2%

6. Consulting Services 3.954 2.820 74.4% 0.0% 1.134 33.8%

7. PMU Staff Costs 1.402 - 0.0% 0.0% 1.402 41.7%

8. Sub Project Maintenance

9. Taxes & Duties 3.531 0.265 7.0% 3.123 7.5% 0.143 4.3%

Subtotal A 41.803 3.475 91.7% 35.187 84.99% 3.141 93.5%

B Contingencies

1 Physical 3.500 0.106 2.8% 3.341 8.1% 0.053 1.6%

2 Price 0.670 0.020 0.5% 0.640 1.5% 0.010 0.3%

Subtotal B 4.170 0.126 3.3% 3.980 9.61% 0.063 1.9%


Total Project Cost (A+B+C) 48.549 3.788 100.0% 41.402 100.00% 3.359 100.0%

25

26

E. Expenditure Cost Estimated by Year

Table 15: Total Three States- Estimated Expenditure Accounts by Year (Whole Program)

($ ‘000) Item 2010 2011 2012 2013 2014 2015 2016 2017 Total A. Investment Costs Civil works 11,731 15,666 38,505 29,761 53,919 53,869 25,542 25,542 254,534 Equipment and Supplies 674 11 3,137 2,168 5,111 4,115 2,050 2,004 19,271 Training 321 321 160 321 0 0 0 0 1,123 Community Initiatives 229 369 679 311 617 617 306 306 3,434 Studies & Surveys 308 195 172 241 241 41 41 41 1,279 Consulting Services 3,528 2,817 2,557 4,732 2,872 2,562 2,312 1,072 22,454 PMU Staff Costs 1,313 1,313 1,307 1,426 1,426 1,426 1,426 1,426 11,062 Recurrent Costs 0 0 0 0 36 0 0 36 73 Taxes & Duties 2,091 2,339 5,237 4,409 7,341 7,143 3,605 3,466 35,630 Total Base Cost 20,468 22,906 51,275 43,165 71,878 69,943 35,292 33,934 348,860B. Contingencies 1,587 2,155 5,764 4,770 9,061 9,257 4,681 4,812 42,089C. Financing Charges 138 685 1,544 2,560 2,026 3,318 1,514 2,149 13,935 Total Project Cost 22,194 25,746 58,582 50,495 82,964 82,518 41,488 40,895 404,883

% Total Project Cost

Table 16: Maharashtra- Estimated Expenditure Accounts by Year (Whole Program)

($ ‘000) Item 2010 2011 2012 2013 2014 2015 2016 2017 Total A. Investment Costs Civil works 2,458 2,338 13,055 12,546 24,306 24,306 11,770 11,770 102,549 Equipment and Supplies 243 5 1,406 954 2,316 1,857 939 923 8,644 Training 130 130 65 130 0 0 0 0 453 Community Initiatives 88 88 231 143 284 284 141 141 1,400 Studies & Surveys 105 71 58 80 80 14 14 14 437 Consulting Services 1,321 1,056 966 1,769 1,100 950 869 388 8,420 PMU Staff Costs 491 491 491 491 491 491 491 491 3,931 Recurrent Costs 0 0 0 0 0 0 0 0 0 Taxes & Duties 681 592 1889 1799 3441 3287 1653 1611 14953 Total Base Cost 5,518 4,771 18,162 17,914 32,020 31,189 15,877 15,338 140,787B. Contingencies 363 364 2,033 2,012 4,075 4,164 2,141 2,204 17,355C. Financing Charges 35 164 389 726 875 1,448 695 983 5,316 Total Project Cost 5,916 5,299 20,584 20,652 36,970 36,801 18,713 18,525 163,458

% Total Project Cost 3.62% 3.24% 12.59% 12.63% 22.62% 22.51% 11.45% 11.33% 100.00%

27

28

Table 17: Goa- Estimated Expenditure Accounts by Year (Whole Program)

($ ‘000) Item 2010 2011 2012 2013 2014 2015 2016 2017 Total

A. Investment Costs Civil works 1,049 0 4,384 3,298 5,288 5,238 1,994 1,994 23,246 Equipment and Supplies 192 2 326 260 478 401 172 157 1,988 Training 62 62 31 62 0 0 0 0 216 Community Initiatives 40 80 105 25 49 49 24 24 396 Studies & Surveys 57 32 48 80 80 14 14 14 337 Consulting Services 563 480 531 988 676 591 551 280 4,659 PMU Staff Costs 355 355 349 467 467 467 467 467 3,394 Recurrent Costs 0 0 0 0 36 0 0 36 73 Taxes & Duties 232 99 591 533 733 700 330 304 3,523 Total Base Cost 2,488 1,067 6,348 5,726 7,873 7,517 3,544 3,267 37,831B. Contingencies 152 17 664 558 912 928 400 405 4,035C. Financing Charges 16 65 133 267 268 415 123 183 1,470 Total Project Cost 2,656 1,149 7,145 6,551 9,053 8,860 4,067 3,855 43,336


29

Table 18: Karnataka- Estimated Expenditure Accounts by Year (Whole Program)

($ ‘000) Item 2010 2011 2012 2013 2014 2015 2016 2017 Total A. Investment Costs Civil works 8,227 13,331 21,065 13,916 24,323 24,323 11,778 11,778 128,739 Equipment and Supplies 239 5 1,406 954 2,316 1,857 939 923 8,640 Training 130 130 65 130 0 0 0 0 453 Community Initiatives 100 201 344 143 284 284 141 141 1,638 Studies & Surveys 146 92 65 80 80 14 14 14 505 Consulting Services 1,646 1,283 1,060 1,975 1,095 1,021 891 403 9,374 PMU Staff Costs 467 467 467 467 467 467 467 467 3,738 Recurrent Costs 0 0 0 0 0 0 0 0 0 Taxes & Duties 1507 1561 2293 1860 3418 3270 1642 1602 17154 Total Base Cost 12,463 17,068 26,765 19,526 31,985 31,236 15,871 15,328 170,242B. Contingencies 1,073 1,774 3,068 2,200 4,074 4,166 2,141 2,203 20,699C. Financing Charges 88 456 1,022 1,566 883 1,456 696 984 7,149 Total Project Cost 13,624 19,298 30,855 23,292 36,942 36,858 18,708 18,515 198,090


30

F. Disbursement S-curve

31. The estimated disbursement progress over the implementation period of the Project 1 is shown in Figure 3. This will help to assess disbursement performance at any time during the project implementation. In case of delays and poor disbursements, this will help as an early warning system for taking timely remedial measures.

Figure 3: Tranche 1 Project Disbursement S Curve

G. Fund Flow Diagram

32. The fund flow diagram, as illustrated in Figure 4, shows how the funds will flow from ADB, and the Government to implement project activities.

31

Figure 4: Fund Flow Mechanism and Procedure

Department of Expenditure Plan Finance Division

ADB

State Finance Department

SEA PMU

Main Operating Bank Account

Controller of Aid Accounts and Audit

(CAAA)

Advanced Replenishment

in US$

Submit liquidation withdrawal application

Release rupee equivalent

Deposit rupee funds received

from ADB Provide Rupee funds for government/state

share

Contractors, Suppliers, and Service Providers

Submit liquidator cum

replenishment in US$

Issues Rs Credit Advice

ADB first Generation

Imprest Account

ADB Second Generation Imprest Account

32

V. FINANCIAL MANAGEMENT

33. Key proposals for financial management assessment are summarized in Table 19, Table 20, and Table 21:

Table 19: Financial Management Assessment Summary – Maharashtra Maritime Board

Particulars Rating Conclusions

A. Executing Agency

Satisfactory Maharashtra Maritime Board (MMB) is a statutory body under Government of Maharashtra and governed by the Maharashtra Maritime Board Act. It is under the Home Department, Govt. of Maharashtra. In regards to Plan budget related issues, MMB do not have decision-making authority. MMB has not implemented any External Aided Project.

B. Funds Flow Arrangements

Moderate MMB do not have knowledge of and working experience in ADB, funds flow arrangements. For the project, the option on funds flow and lending arrangements have been identified in consultation with the MMB representatives. Prior to loan negotiations it is essential to ensure the availability of counterpart funds from the state government.

C. Staffing Low MMB does not have adequate staff with experienced financial specialists. The Finance and Administration Unit (FAU) will be established to conduct the regular accounting according to ADB procedures. It is recommended to organize training and workshops on ADB financial management procedures for the existing staff. It is expected that on-the-job trainings will be provided by the specialist working in Project Management and Design Consultants (PMDC).

D. Accounting Policies and Procedures

Satisfactory The MMB accounting policy is based on the Government of Maharashtra Financial Rules. For the project the same accounting policy could be used. There is a necessity to establish an accounting manual in accordance with requirements of ADB.

E. Internal Audit Low There is internal auditor post within the structure of the MMB. There is one internal auditor post that is lying vacant at present.

F. External Audit Satisfactory The Accountant General of Maharashtra is the auditor of the annual financial statement of MMB. Under the ADB loan the audit of the project accounts would be done in accordance with the audit procedures of the state government.

G. Reporting and Monitoring

Satisfactory The MMB reports comply with the reporting requirements of the Government of Maharashtra. Acceptable reporting requirements for the proposed FAU should be stipulated in the Loan Agreement between ADB and Government.

NA H. Information Systems

MMB does not operate any accounting or financial system. All reports are prepared using spreadsheets or manually. A financial system to be developed according to the accounting manual. Linking the Project Management Unit (PMU) and corresponding sub-projects in one information network is required to improve the effectiveness of the information exchange.

Source: PPTA consultants

33

Table 20: Financial Management Assessment Summary – Department of Water Resources, Goa


A. Executing Agency

Satisfactory The Water Resources Department is under Government of Goa. The Water Resources Department is presently the implementing the World Bank financed Hydrology Phase II Project.


Moderate The Water Resources Department does not have experience in ADB funds flow arrangements. The option on funds flow and lending arrangements are identified in consultation with the Water Resources Department representatives and the Joint Director of the Finance Department. . Prior to loan negotiations it is essential to ensure the availability of counterpart funds from the state government;

C. Staffing Low The Water Resources Department is not adequately staffed with experienced financial specialists. The Finance and Administration Unit (FAU) will be established to conduct the regular accounting according to ADB procedures. It is recommended to organize trainings and workshops on ADB financial management procedures for the existing staff. It is expected that on-the-job trainings will be provided by the specialist working in Project Management and Design Consultants (PMDC).


Satisfactory The Water Resources Department’s accounting policy is based on the General Financial Rules. For the project, same accounting policy could be used. There is a necessity for establishing accounting manual in accordance with requirements of ADB.

E. Internal Audit Low There is no internal audit unit within the Water Resources Department.

F. External Audit Satisfactory The Accountant General of Goa is the auditor of the financial statement of The Water Resources Department. If stipulated in the loan agreement, audit of the project accounts will be done in accordance with the audit procedures of the state government.


Satisfactory The Water Resources Department reports comply with the reporting requirements of the Government of Goa. Acceptable reporting requirements for the proposed FAU shall be stipulated in the Loan Agreement between ADB and Government.

H. Information Systems

NA The Water Resources Department does not operate any separate accounting or financial system. All reports are prepared using spreadsheets or manually. A financial system should be developed according to the accounting manual, this would link the PMU and corresponding sub-projects in one information network and is required to improve the effectiveness of the information exchange.

34

Table 21: Financial Management Assessment Summary – Public Works, Ports and Inland

Water Transport Department, Karnataka


Satisfactory The Public Works Department has undertaken externally aided projects. However the Directorate of Ports and Inland Water Transport has not implemented any External Aided Project.

A. Executing Agency

Moderate The Public Works, Ports and Inland Water Transport Department haveknowledge of and working experience in ADB funds flow arrangements. For the project, the option on funds flow and lending arrangements are identified in consultation with the Public Works, Ports and Inland Water Transport Department representatives and Secretary (Budget & Resource) of the Finance Department of the state government. The state government would provide budget provision for the project which would be later reimbursed by ADB. Prior to loan negotiations it is essential to ensure the availability of counterpart funds from the state government.


Low The Public Works, Ports and Inland Water Transport Department is not adequately staffed with experienced financial specialists. The Finance and Administration Unit (FAU) will be established to conduct the regular accounting according to ADB procedures. It is recommended to organize trainings and workshops on ADB financial management procedures for the existing staff. It is expected that on-the-job trainings will be provided by the specialists working in PMDC.

C. Staffing

Satisfactory The Public Works, Ports and Inland Water Transport Department accounting policy is based on the Karnataka Financial Rules. For the project, same accounting policy could be used. There is a necessity for establishing accounting manual in accordance with requirements of ADB.


Low There is no internal audit unit within the Ports and Inland Water Transport Department.

E. Internal Audit

Satisfactory The Accountant General of Karnataka is the auditor of the annual financial statement of The Ports and Inland Water Transport Department. Audit of the project accounts will be done in accordance with the audit procedures of the state government.

F. External Audit

Satisfactory The Public Works, Ports and Inland Water Transport Department reports comply with the reporting requirements of the Government of Karnataka. Acceptable reporting requirements for the proposed FAUshall be stipulated in the Loan Agreement between ADB and Government.


NA The Public Works, Ports and Inland Water Transport Department does not operate any separate accounting or financial system. All reports are prepared using spreadsheets or manually. A financial system to be developed according to the accounting manual. Linking the PMU and corresponding sub-projects in one information network is required to improve the effectiveness of the information exchange.

H. Information Systems

35

A. Finance and Administration

a. Finance and Administration Unit

34. A Finance and Administration Unit (FAU) under the Project Management Unit (PMU) for each state is required to be in place to ensure the rules and regulations and reporting formalities of ADB are followed. The Project Finance manager will be adequately qualified with major responsibilities that include overseeing the budgeting, accounting, and reporting of all financial transactions relating to the implementation of the project under the overall supervision of the Project Director. The financial management infrastructure already in place will be inadequate to provide the requisite Financial Management (FM) arrangements for the project, and special FM architecture will be required to provide the acceptable accountability assurance for the project. Based on the additional work required to ensure timely and accurate processing, accounting, and reporting of the financial and related activities of the project, an incremental staffing requirement of one professionally qualified Project Finance Manager assisted by qualified staff will be required. The proposed FM organogram for the project is shown in Figure 5 below.

36

Figure 5: Financial Management Organogram

Project Finance Manager

Finance Manager Officer

Accounting Assistants

Project Director of PMU

Internal Auditor

Accounts Officers Officer

35. There shall be sufficient number of Accounting Assistants who would assist the FM staff in record keeping and data entry and they should preferably be commerce graduates. Advance recruitment of above staff shall be initiated so that financial management system is in place within PMU before the start of Project implementation.

b. Fund Flow

36. According to the General Financial Rules issued by the Government of India, the ADB fund will be treated as “Fund Flow for State Projects financed from external aided source”. The requirements will include:

(i) The Government of each state shall ensure that the budget incorporates estimates of the annual funding requirements of the project under the Plan Scheme for the ADB funds as well as the government contribution and the release of funds. It is also recommended that the share of ADB should come directly into the SGIA from the Imprest Account instead of being routed through state treasury thereby reducing the delay in receipt of fund by the agency.

(ii) The project would adopt the cash basis of accounting however, notes to the financial statements showing the outstanding commitments at the period-end would augment the financial reporting. The financial statements shall comply with the mandatory reporting requirements with an attempt to present the optional disclosures as per good practice. The project financial statements would be kept separate from the entity’s financial statements.

(iii) There must not extreme divergence between budget allocation and actual spending. The mechanism of budget formulation, execution, and monitoring as well as key procedures in the use of money such as procurement should be developed.

(iv) It is essential to link the physical progress of the project along with budget and accounts through system in order to monitor the progress.

37

(v) In order to maintain proper recording of accounting transactions, an accounting manual should be developed for the project accounting by the PMDC.

(vi) The Chart of Accounts should be developed in accordance with the accounting manual to capture all the information in relation to loan.

(vii) Each Executing Agency, through their PMU, will establish and maintain separate records for works, goods, and services financed out of loan proceeds. Each Executing Agency will also maintain separate project accounts according to generally acceptable accounting principles for all expenditures incurred under the MFF and the Projects, whether out of loan proceeds or other sources. Each Executing Agency will record in a transparent manner all funds received from the respective state governments and ADB. Detailed consolidated annual project accounts as maintained by the individual Executing Agency through their PMU will be audited by independent auditors whose qualifications, experience, and terms of reference are acceptable to ADB. The annual audit report will include the audit of the SGIA, and the SOE procedure, and will include a separate audit opinion on the use of loan proceeds, the operation of the SGIA, and compliance with SOE procedures and loan covenants. Each Executing Agency must be aware of ADB’s policy regarding the delayed submission of audits and the requirements for a satisfactory and acceptable audit of accounts.

(viii) One of the key areas of good governance is to focus on expenditure. The ability to assess performance may be hampered by problems with determining the actual money that would reach service delivery points together with determining realistic performance criteria. The system should be designed to assist in the creation of a strategic approach to improve expenditure effectiveness. In order to develop an effective system of expenditure management, principles of good practice in tracking expenditures, utilizing findings to adapt policies and budget allocations, and techniques for establishing a sustainable and constructive system for monitoring performance is required.

(ix) The Operation Manual recommends will assist in enforcement of relevant laws, regulations and policies for efficient project management and their fair and consistent application.

c. Capacity Building

37. The central role of the PMU is to ensure the implementation of sound financial management arrangements acceptable to the ADB. Specific measures for upgrading should be identified and taken up under the proposal for financial management and institutional development and capacity building of the PMU. This would include hiring of professional Financial Management staff and implementation of reliable financial management systems. By implementing sound financial accounting systems, the financial accountability will develop which facilitates expenditure control, and internal and external audits.

38. Closer supervision would be required initially to ensure compliance with the proposed systems and staffing improvement/ enhancement and the engagement of capacity building support. Later on normal supervision may be applied.

d. Audits

39. A fulltime Internal Auditor would be part of each Executing Agency for control aspect and to effectively monitor and report the shortcomings if any. The Internal Auditor would function under the Finance Manager with support staff as may require. It is proposed to recruit an

38

external auditor whose terms of reference for annual project audit are to be developed by PMDC and are acceptable to ADB.

e. Information System and Reporting Mechanism

40. The accounting system should be computerized along with budgeting system for seamless data flow, and data integration and also for monitoring. The proposed accounting system should help to develop financial MIS that might be accessible to the public through website of the project. This may bring transparency to the available information of project in a timely and accurate manner.

B. Risk Analysis

41. During the implementation phase, the PMU might face some risks that can be divided into two main categories: (i) state level; and (ii) project level. Unavailability or delay in the release of counterpart funds can be attributed as state specific risk for the investment program. This, together with project-specific risks and activities to mitigate them, are summarized in Table 22. Financial management risks and mitigation measures shall need to be considered and updated throughout the life of the investment program.

Table 22: Risk Assessment and Mitigation Measures

Risk Risk

Assessment*Risk-Mitigation Measures

Inherent Risk 1. State Specific Risks M State finance departments shall ensure the timely

release of counterpart funds, as per loan covenants

2. Project Specific Risks M PMU to be established as soon as possible. Extensive training on ADB procedures shall be carried out.

Overall Inherent Risk M Control Risk 1. Project Management M Organizational capacity augmentation with the induction

of experienced PMU staff will support the existing organizational structure

2. Funds Flow M Timely availability of counterpart funds will be ensured by implementing the proposed funds flow arrangements

3. Staffing M Dedicated and qualified accounting and financial management staff at PMU level shall be recruited. Project Management and Design Consultants shall assist the PMU to determine training needs of the new staff. It shall assist them to design and implement the training programs especially for ADB financial reporting requirements and their integration into overall state reporting requirements.

4. Accounting Policies and Procedures

M Accounting Policy shall be drafted taking into account the state accounting standards and the requirements of ADB.

5. Internal Audit N Internal auditor shall be appointed for PMU by the State.

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Risk Assessment*

Risk-Mitigation Measures Risk

6. External Audit N Audit of the project accounts shall be done in accordance with the International Standards on Auditing, by the Auditor acceptable to ADB.

7. Reporting and Monitoring M PMU shall regularly report in accordance with ADB requirements on inherent adequate control mechanisms

8. Information Systems M Effective and appropriate computer accounting systems shall be installed at PMU to support efficient information system and reporting. Overall Control Risk M

* H – High, M – Moderate, N – Negligible or Low. Source: PPTA consultants C. Disbursement

42. Disbursements will be in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Each loan under the Facility will have its own imprest account (First Generation Imprest Account or FGIA) in the Reserve Bank of India, established by India as the Borrower. Each State through its respective SEA may if required, establish a second-generation imprest account (SGIA) for each loan with a commercial bank acceptable to ADB. India and the SEAs will be responsible for administering and managing the imprest account and the SGIA, respectively. The amount in the imprest account or the SGIA at any given time will not exceed the lower of the estimated expenditure for the first 6 months of project implementation, or 10% of the relevant loan amount. The imprest account and the SGIA(s) will be established, managed, and liquidated in accordance with ADB's Loan Disbursement Handbook (2007, as amended from time to time).The statement of expenditures (SOE) procedure will be used to reimburse/liquidate eligible expenditures not exceeding $100,000 equivalent per individual payment.

43. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),2 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5) to subprojects financed by ADB.

44. A Finance and Administration Unit will be established in the each of the state PMUs to ensure the rules and regulations and reporting formalities of ADB are followed. The Project Finance manager should have qualifications. His/her major responsibilities will include overseeing the budgeting, accounting, and reporting of all financial transactions relating to the implementation of the project under the overall supervision of the Project Director.

45. Each Executing Agency, through their PMU, will establish and maintain separate records for works, goods, and services financed out of loan proceeds. Each Executing Agency will also maintain separate project accounts according to generally acceptable accounting principles for all expenditures incurred under the MFF and the Projects, whether out of loan proceeds or other

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

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

40

sources. The annual audit report will include the audit of the SGIA, and the SOE procedure, and will include a separate audit opinion on the use of loan proceeds, the operation of the SGIA, and compliance with SOE procedures and loan covenants. Detailed consolidated annual project accounts as maintained by the SEAs through their PMU will be audited by independent auditors whose qualifications, experience, and terms of reference are acceptable to ADB, and will be submitted to ADB within 6 months of the end of the fiscal year.

D. Accounting

46. The SEA will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. The project accounts will be audited annually and submitted by the SEAs to ADB.

E. Auditing

47. The SEA will cause the detailed consolidated project accounts to be audited in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are 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 executing agency. The annual audit report will include a separate audit opinion on the use of the imprest accounts, SGIA, and the SOE procedures (as applicable). The Government and SEA 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.

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting and Retroactive Financing

48. Under each tranche, ADB may, subject to its policies and procedures, allow on request (a) advance contracting and (b) retroactive financing of eligible expenditures for up to 20% of the proposed individual loan, incurred prior to loan effectiveness but not earlier than 12 months before the date of signing of the related legal agreement. The Government acknowledges that any approval of advance contracting and/or retroactive financing will not constitute a commitment by ADB to finance the related project.

49. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (2010, as amended from time to time). (ADB’s Procurement Guidelines)3 and ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time).4 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval.

3 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf 4 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

41

B. Procurement of Goods, Works and Consulting Services

50. Procurement of goods, civil works, and related services financed from the ADB loans will be done in accordance with ADB’s Procurement Guidelines (January 2010, as amended from time to time) and the procurement plans for the projects. Procurement plans for the subsequent projects will be developed during its preparation. Use of force account will be subject to ADB’s Procurement Guidelines (January 2010, as amended from time to time).

51. Modifications in Civil Works Contracts. In the case of any variation, which would in aggregate increase the original amount of the contract by more than 15 percent of the original price, the EA shall seek ADB’s no objection to the proposed extension, modification, or change order providing detailed justification validated by the Engineer. If ADB determines that the proposal would be inconsistent with the provisions of the financing agreement and/or procurement plan, it shall promptly inform the EA and state the reasons for its determination. A copy of all amendments to the contract shall be furnished to ADB for its record.

C. Consulting Services

52. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants.5 The project will finance two consulting packages Package A and Package B with a total of 1361 person-months (p-m) of consultancy (261 international and 1,100 national), and 29 person-months of panel of experts. For both packages, firms will be recruited using QCBS with 90:10 (quality: cost) and the full technical proposal given, the specialized and innovative nature of design and implementation to be carried out under the project including complex coastal modeling.

(i) Project Management and Design Consultants (PMDC). This consultancy

would start in month 1 and continue over 96 months. The consultancy will include project management as well as planning and design activities. The consultant will be directly responsible for the planning and design activities for the second tranche projects in year 1 and 2. From year 3 the role of PMDC will reduce to support and supervision of planning and design by SEA and PDSCs as below. . This approach is designed (1) to help develop and support the buildup of state level capacities for shoreline planning and management, and (2) develop local expertise in shoreline planning and management. The PMDC consultant would be initially recruited for a period of 40 months to cover the activities in tranche-1.The PMDC consultancy over the whole project would include 821 p-m (188 international and 633 national)

(ii) Planning and Design Support Consultancies (PDSC) will be provided from

year 3 to undertake the planning and detailed designs including the subprojects proposed for Tranche 4. The objective of this consultancy is to develop the local expertise to plan and design effective coastal protection and management works. The terms of reference and the final requirements for this consultancy will be defined once the type and scope of the Tranche 4 funded projects are defined.

5 Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

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

42

Planning and Design Support Consultancy over the whole project would include 540 p-m (73p-m international and 467 p-m national).

(iii) Independent Panel of Expert Individual Consultants (PoE). An independent

panel of experts will be recruited to provide independent technical support and backstopping and will also support the approval process of the project designs. The panel of experts will be high level international and national coastal experts and will be available to support the project as and when required. The PoE will prepare training modules and presentations as a part of the training program. The provision of consultancy for the PoE over the whole project is 29 p-m (15p-m international and 14 p-m national). PoE will be engaged as individual consultants in accordance with "Guidelines on the use of Consultants by ADB and its Borrowers (April 2010, amended from time to time).

(iv) Community Development Program. Shoreline development initiatives, such

as, dune management, dune plantation, minor sand nourishment, and income generation activities will be carried out by community participation, such as local communities and/or nongovernmental organizations (NGOs). ADB’s community participation procurement method will be followed to engage community participation to implement these activities. (In accordance with ADB Procurement Guidelines, 2010)

D. Procurement Plan

1. Introduction

53. The procurement plan for Project 1 covers the first 18 months of procurement activity, which shall be finalized at the loan negotiations. Within one year after the date of loan effectiveness, the SEA in each state may submit a revised procurement plan to ADB for approval that captures all ongoing procurement and that planned for the following 18 months. The plan shall be updated annually (or as required after every loan review mission or after award of each major ICB contract), on the same basis for the duration of the project.

54. Procurement capacity assessment of the SEAs has been carried out. Karnataka has a public procurement act which is substantially aligned with ADB procurement guidelines. Maharashtra and Goa have clear finance department guidelines on procurement. ADB Team will, in consultation with the SEAs review and arrive at agreed procedures and documents to be applied under National Competitive Bidding mode of procurement under the projects. Staff of PMUs in each state will be further trained under ADB sponsored annual procurement seminars in India and by the CDTA for Capacity Development for Sustainable Coastal Protection and Management.6

55. When a need arises during project implementation to change procurement arrangements (threshold, review requirements, method of procurement, contract packaging), the SEA in

6 ADB. 2009. Technical Assistance to India for Advanced Project Preparedness for Poverty Reduction-Capacity

Development for Sustainable Coastal Protection and Management. Manila.

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consultation with the ADB Project Officer, will make a request justifying the change submitted together with an updated procurement plan, and present it for ADB approval.

2. Procurement Plan

Basic Data Project Name: Sustainable Coastal Protection and Management Investment Program – Project 1 Country: India Executing Agency:

Department of Water Resources for Goa state; Public Works, Ports and Inland Water Transport Department for Karnataka state; and Maharashtra Maritime Board for Maharashtra state

Loan Amount: $51.6 million Loan (Grant) Number: TBD Date of First Procurement Plan: Procurement Plan for Project 1 was approved on 15 January 2010

Date of this Procurement Plan: Procurement Plan for Project 1 was approved on 1 September 2010

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

i. Project Procurement Thresholds

56. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold

International Competitive Bidding (ICB) for Works1

$10,000,000 and above

International Competitive Bidding (ICB) for Works (geotextile reefs)

Any value

International Competitive Bidding for Goods / supply & installation1

$1,000,000 and above

National Competitive Bidding (NCB) for Works1 Below that stated for ICB, Works other than community works contracts

National Competitive Bidding for Goods / supply & installation1

$100,000 and above and less than $1,000,000

Shopping for Goods Below $100,000 Force account for works Less than $500,000

Utility shifting and deposit works of state owned departments or organizations in all 3 states.

Community Participation Simple civil works contracts costing less than $30,000 may be directly awarded to NGOs, community groups as a community works contract

1 For ICB, NCB works, goods and supply contracts, post-qualification procedures will be followed

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ii. ADB Prior or Post Review

57. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement Method Prior or Post Comments Procurement of Goods and Works ICB Works Prior ICB Goods Prior NCB Works Prior for the first

NCB bid document Post review for subsequent NCBs

NCB Goods Prior for the first NCB bid document

Post review for subsequent NCBs

Shopping for Goods Prior for the first shopping bid document

Post review for subsequent shopping

Post Force account for works Post Community Participation

Recruitment of Consulting Firms Quality- and Cost-Based Selection (QCBS) Prior Other selection methods: Least-Cost Selection (LCS), and Single Source Selection(SSS)

Prior

Recruitment of Individual Consultants Individual Consultants Prior

iii. Goods and Works Contracts Estimated to Cost More Than

$1 Million

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

Contract

Package No. Contract

Description

Value $million

Procurement

Expected Date of

Advertisement

Prequalification of Bidders Method

Y/N

Type

Works and Goods

1. Maharashtra

CW-NCB-M1 Mirya Bay - dredging and beach nourishment using bulk sand stockpiled on the beach and from dredging of the fishing harbor. Nourishment by sand after one year.

3.40 NCB March 2011

N Works

CW-ICB-M1 Mirya Bay - construction of one multipurpose geotextile reef

3.00 ICB August 2010

N Works

2. Karnataka

CW-NCB-U1 Ullal - Dredging and beach nourishment (initial and after one

5.00 NCB March 2011

N Works

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Contract Package No.

Contract

Description

Value $million

Procurement

Expected Date of

Advertisement

Prequalification of Bidders Method

Y/N

Type

year)

CW-ICB-U1 18.40 ICB August 2010

N Works Ullal - construction of two multi-purpose geotextile reefs and four inshore berms

Ullal - shortening and rehab of southern breakwater, extension and rehab of northern breakwater, crest protection.

12.00 ICB March 2012

CW-ICB-U2 N Works

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

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

Contract Package Number General Description

Contract Value

Recruitment Method1

Advertisement Date

(quarter/year)

International or National Assignment Comments

CS-1-M Project Management and Design Consultants - Maharashtra

4.03 QCBS Q: C ratio 90:10

July 2010 International Consulting Services

CS-1-K Project Management and Design Consultants - Karnataka

4.87 QCBS June 2010 International Q: C ratio 90:10 FTP

Consulting Services

ICB= international competitive bidding, LIB= limited international bidding, NCB= national competitive bidding, QCBS= quality cost based selection, QBS = quality based selection, SSS= single source selection, LCS= least cost selection FTP= Full Technical Proposal.

v. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000

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

Contract Package

No.

Contract

Description

Value $million

Procurement / Recruit

ment

Expected Date of

Advertisement

Prequalification of Bidders

Method Y/N

Type

A. Works and Goods

1. Maharashtra

Mirya Bay - Community Initiatives to support shoreline development-in multiple lots

Various contracts

0.30 Community participation

Y2010 – Y2012

N Works/ goods

2. Karnataka

Ullal community initiatives to support shoreline development

0.55 Community participation

Y2010 – Y2014

N Works/ goods

Various contracts

3. Force Account

Deposit works including utility shifting of public works, forest, state water and power utilities, fisheries department etc.

0.5 Force Account

Y2010 – Y2014

N Works/ goods

4. Others

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Contract Package

No.

Contract

Description

Value $million

Procurement / Recruit

ment

Expected Date of

Advertisement

Prequalification of Bidders

Y/N

Type

Method

Various contracts

Computers and peripherals, office equipment (multiple lots)

0.6 Shopping Y2010 – Y2014

N Supply

Various contracts

Software ( various in multiple lots) 0.3 Shopping Y2010 – Y2014

N Supply

B. Consulting Services

NGO-various

NGO/CBOs to support community initiatives and activities (dune management & plantation, etc.) as required

0.50 LCS Y2010 – Y2013

National Consulting or Advisory Services

Various Direct appointment of government institutes listed below for support activities including environmental monitoring, technical support as required (various packages): Centre for Marine Fisheries Research Institute

Central Water and Power Research Station

National Institute of Oceanography

Maharashtra Engineering Research Institute

1.0 SSS Y2010 – Y2013

National Consulting, Advisory, Design, Survey, Investigation

Karnataka Engineering Research Station

National Institute of Technology, Surathkal

b. Indicative List of Packages Required Under the Project

61. As noted above. E. Indicative Outline of Consultant's Terms of Reference

1. Project Management and Design Consultants

62. A team of consultants will be employed to assist the State Executing Agencies (SEA).. The Consultancy will be arranged as separate contracts for each state. The Consultants will work directly with the State Project Management Units (PMUs) providing technical assistance for project management, institutional strengthening, planning and design, and support for subproject implementation. In order to maximize the efficiency of the consulting inputs and build PMU staff capacity, the consultants will be based in the offices of the PMU. The period of the proposed consultancy for Project 1 would be for 40 months from month 1 to month 40 of the project. The required consulting services to support Project 1 are summarized in 23 below.

63. The scope of the PMDC services will be in four parts.

(i) Part I: Project Management Support - the Consultants will provide overall support for project coordination and implementation

(ii) Part II: Support for Effective Institutions - the Consultants will support the projects aim to develop effective institutions for the planning and management of the coastline and support the implementation of the investment program roadmap.

(iii) Part III Planning and Design – the Consultants will support preparation of shoreline management plans and detailed design of subprojects

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(iv) Part IV Support for Implementation of Coastal Sub Projects - management and supervision support for coastal sub project projects.

Table 23: Project Management & Design Consultancy Inputs (Project 1)

Person month (inputs)

Total Maharshtra KaranatakaA. International

1 Team Leader 35.0 15.0 20.0 2 Institutional Development Specialist 4.0 2.0 2.0 3 Coastal Planning Specialist/design engineer 16.0 6.0 10.0 4 Coastal modeler 13.0 5.0 8.0 5 Construction Specialist 3.0 1.0 2.0 6 Environmentalist 4.0 2.0 2.0 7 Community Planning/social Specialist 2.0 1.0 1.0 8 Economist 4.0 2.0 2.0 9 Tourism Specialist 2.0 1.0 1.0 10 PPP Specialist 2.0 1.0 1.0 11 Marine geotextile expert 2.0 1.0 1.0 12 Dune Management Specialist 2.0 1.0 1.0 13 Coastal Wetland Ecologist 2.0 1.0 1.0 14 Unspecified specialists as required 10.0 4.0 6.0

Subtotal International 101.0 43.0 58.0

1 Coastal Engineer/Project Manager 74.0 36.0 38.0 2 Institutional/Training Specialist 10.0 5.0 5.0 3 Coastal Planner/design engineer 44.0 18.0 26.0 4 Coastal modeler 18.0 6.0 12.0 5 Construction Management Specialist 12.0 5.0 7.0 6 Assistant Coastal Engineer 32.0 16.0 16.0 7 Land Use/GIS Specialist 10.0 5.0 5.0 8 PPP Enterprise specialist 8.0 4.0 4.0 9 Community Planning/social Specialist 6.0 3.0 3.0 10 Environmentalist 6.0 3.0 3.0 11 Dune Management Specialist 2.0 1.0 1.0 12 Coastal Ecologist 4.0 2.0 2.0 13 Economist 11.0 5.0 6.0 14 Water quality specialist 2.0 1.0 1.0 15 Quantity surveyor 8.0 4.0 4.0 16 Geotechnical design consultant 3.0 1.0 2.0 17 Contracts/procurement specialist 8.0 4.0 4.0 18 Unspecified specialists as required 22.0 10.0 12.0

Subtotal National 280.0 129.0 151.0

B. National

64. Part I Project Management: The Consultants will assist with the overall project coordination and management through the relevant agencies at national, state, district and Panchayat levels. The Consultants will work closely with the State Project Management Units (PMU) to ensure the effective and timely delivery of the project outputs.

65. Monitoring Project Performance: As part of the project management role, the consultants will design and establish the project performance management system (PPMS). This will include the SEA and the PMU to monitor and evaluate implementation of the project, identify performance constraints and formulate and implement practical measures to address

48

shortcomings. Annual performance evaluations will be conducted based on assessment of the projects. Outputs of the PPMS will be supplied to the Project Steering Committees and ADB.

66. Part II Support for Effective Institutions: The Consultants will support the development of effective institutions for sustainable planning and management of the coastline. This includes institutional strengthening of the government, communities and the private sector. The consultant will prepare an institutional review and training plan including an assessment of the relevant institutions at national, state, district, Panchayat and community levels. The review will liaise closely with ongoing initiatives under the World Bank ‘Integrated Coastal Zone Management Project’. The review will integrate the state and district level institution needs with the overall national training and institutional development programs. The review will assess the scope to develop the private sector to support the planning and management requirements. A strategy for institutional strengthening and development of private sector consultants and Government Institutes to support the planning and management of the shorelines will be prepared. From the findings of the review prepare an institutional and training needs assessments be prepared for the state and district institutions

67. The consultants will be required to: (i) implement the training Program: (ii) prepare a review of shoreline management procedures; (iii) assess how a Coastal Information Management Unit (CIMU) can be effectively established ; (iv) develop recommendations on the long term strategies for shoreline management planning including linkages with the proposals being prepared under the MoEF and World Bank for vulnerability mapping and coastal zone management; (v) link the needs of shoreline erosion and management and issues of development planning with the wider aspects of coastal zone management; (vi) address the issues of funding for shoreline planning and control mechanisms; (vi) support the community in shoreline management functions for each of the subprojects and (vii) support the assimilation of private sector investors into coastal protection and management. including the scoping of potential investor

68. The consultants would support the preparation of guidelines for private sector participation in coastal protection and management, and contracts and agreement for any subprojects selected for PPP. 100. Part III Planning and Design is directed at the preparation of long term sustainable development plans and management for the shoreline; as well as planning and design for sub projects. This activity is a task activity for which the consultant will be required to prepare and submit plans and designs. Project selection, detailed feasibility studies and designs for the sub projects will also be prepared under this component. The key tasks of the consultant will include.

(i) Support the Establishment of a Coastal Management Information System including a GIS7 and supporting technical information. The information system will be developed over the project period and will build up key information to support shoreline planning and management. The information system will be established within each of the State Executing Agencies and will source information from National and State Institutions and other agencies including MoEF.

7 This should build on the simple GIS developed under ADB. 2007. Technical Assistance to India for Sustainable Coastal Protection and Management. Manila (TA 4965).

49

(ii) Prepare Participative Shoreline Management Plans for the whole coastline of the three states. The plans will be based on technical assessments of the coastal process and issues and will also identify existing and potential economic opportunities including tourism for the coastal areas. The plans will be non statutory and prepared in close cooperation of the relevant planning authorities and require to involve the active participation of the stakeholders. The shoreline management plans will be first round plans and would form the basis of a long term planning process to be repeated at periodic intervals. The plans would be developed based on the output of the ‘Shoreline Planning Processes’ report.

(iii) Prepare Detailed design of the Ullal entrance breakwater (Karnataka only).

Detailed designs will be based on the feasibility designs prepared under the PPTA. The design will include more detailed numerical modeling of the river estuary area to develop long term sustainable designs for the breakwaters. The report will assess the sediment balances in the estuary area and the needs to feed sediment to the beaches to the south. The design will assess the safe extraction volume of sediment in the river mouth and estuary area. Final design drawings, specifications, bills of quantities will be prepared as a part of the design,

(iv) Undertake Selection, Planning and Design of the sub projects selected for

Tranche 3 of the project. Project selection would be based on the selection criteria and three stage selection process proposed under the project preparation. The three stage process would be (i) Identification, (iii) Prefeasibility and (iii) feasibility studies. Subprojects would include physical investments for infrastructure as well non structural community and economic initiatives. The promotion of private sector investment is one of the project targets and the possible involvement of the private sector is one criteria to be considered in the subproject selection process. Key planning and design documents will be submitted to the panel of experts for review comment and approval. The PoE would present advisory recommendations to the SEA on planning and design approvals.

69. Part IV Support for Investment Projects: The consultants will provide management and site supervision support to the PMU for the construction of the sub projects including the provision of the specialist support for the offshore geotextile reefs. Daily on site supervision will be by the PMU but the consultant will be required to provide periodic inspection. The consultant will support the timely progress of the works, enforce specified materials and workmanship requirements and control the quality of the construction. This includes assessment of programs, materials, labor, construction methods and monitoring of compliance with specified construction methods, installation and commissioning. It includes supervision support for the contractors programs, rates of progress, performance testing, compliance with specifications and drawings, health safety and compliance with the environmental management plans. Specific tasks will include; (i) periodic site supervision activities to ensure quality control and compliance with specifications; (ii) support the progress of the project contract management including payment certificates, claims and variations; (iii) monitor compliance of the environmental mitigation and management plans by the contractors and (iv) support the progress and preparation of completion certificates.

70. Community and Economic Support Initiatives: The sub projects have been designed to with provision of funding for community and economic support initiatives (CESI). These are a

50

mix of non structural and low cost structural activities and initiatives to support the development and management of the shoreline together with programs to add value to the subprojects. For each sub project the consultant will work closely with the local Panchayats, district officials and stakeholders to support the project selection through effective community participation, and guide the design and implementation of selected CESI projects. Projects will be based on a local community approach. Local consultants, NGO or other local agencies will be recruited to support and implement the community and economic programs as required. Separate and specific funding is available for the CESI within the loan budget. Procurement for the CESI activities and must comply with Government and ADB procurement procedures.

2. Planning and Design Support Consultancies (PDSC)

71. The Planning and Design Support Consultancies (PDSC) will provide technical support to the main consultants in key areas, as and when required. The type and scope of the planning and sub projects design is very varied and it will be necessary to source specialist support consultants to meet specific needs. During Tranche 1 and Tranche 3 (to a lesser extent) the PDSC would work in a support role to the main PMDC consultancy. During Tranche 4 the PMDC would take on the lead role for technical planning and design with the main PMDC consultant working in a support role. The PDSC is designed as a mechanism to develop the national capacities for planning and design, presently very limited. Recruitment of the PDSC would be thorough the ADB procedures (shopping or tender) depending on the size and type of the work; both private sector and state institutes could participate, with selection based on both quality and cost. The main inputs would be through national consultants however budget provision has been made to recruit international consultants to provide specialist inputs. The objective is that by the end of the project there would be a pool of qualified and experienced national consultants from the private sector and Government institutes providing commercial consultancy. These consultants would provide the key support for the long term needs of coastal planning and design including capacities to undertake professional and high level numerical modeling of the coastal processes. The project would also develop and establish effective and competitive processes for selection and recruitment of consultants. 72. The PDSC would start in year 3 with a scope of works to be defined based on an assessment of the requirements during years 1 and 2. The packaging of the consultancy would also depend on the type and scope of the works; options include direct contract of individuals, or larger groups through private consultancy companies or institutes. The proposed inputs by the PDSC for Tranche 1 is 6 person-months international and 32 person-months national.

3. Panel of Experts (PoE)

73. A Panel of Experts will be recruited to review the quality, integrity and efficiency of the coastal designs. The panel will ensure that acceptable methodology and design standards are applied during feasibility and detail design activities, members of the panel will be mobilized to (i) review the draft feasibility study reports and detail designs of the subprojects for Tranches 3 and 4; (ii) provide training to selected technical staff including CWPRS/associated staff involved with the program technical feasibility/designs review and (iii) review the adequacy of first tranche program construction works. In total, it is estimated that the panel of experts will be mobilized in India two times during the life of the first tranche. The POE will include; International consultants:- Coastal Engineering Expert (Generalist), Coastal Morphologist and Modeler, Geosystems Designer, and Construction Expert (Rock structures and geo-systems). National experts will be recruited to support the international team. It is proposed to recruit these experts as individual consultant from a short list of renowned world class specialists. The

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proposed inputs by the PoE in Tranche 1 is 12 person-months international and 8 person-months national.

VII. SAFEGUARDS

74. India will cause the State to ensure that all the requirements prescribed in the Schedule to the FFA, and the following frameworks that have been prepared with respect to the Facility and of which ADB has been provided full copies, and which are deemed incorporated herein by reference, are complied with during the processing and implementation of the subprojects under the Facility.

(i) Environmental Assessment and Review Framework (EARF) (ii) Environmental Impact Assessment (EIA) of each of the subprojects and

Summary EIA including related environment management plans (EMPs) (iii) Resettlement Framework (RF) (iv) Indigenous Peoples Planning Framework (IPPF)

75. The frameworks cover the Facility specific information and requirements in accordance with ADB’s safeguard policies: (i) the general anticipated impacts of the subprojects likely to be financed under the MFF on the environment, involuntary resettlement, and indigenous peoples; (ii) the safeguard criteria that are to be used in selecting subprojects; (iii) the requirements and procedure that will be followed for screening and categorization, impact assessments, development of management plans, public consultation and information disclosure (including the 120-day disclosure rule, if required), and monitoring and reporting; (iv) the institutional arrangements (including budget and capacity requirements) and India’s and ADB’s responsibilities and authorities for the preparation, review and clearance of safeguard documents.

76. Prior to the preparation of each PFR, the applicability and relevance of each safeguard framework for environmental assessment, involuntary resettlement, and indigenous people will be reviewed and updated to ensure relevance and consistency with applicable country legal frameworks and ADB’s safeguard policies, as amended from time to time.

77. In all cases, for each new PFR preparation, India will cause the States to review on-going subprojects to check on the status of compliance with the safeguard plans and frameworks, and submit the review reports to ADB, together with other required safeguard documents relevant to the subprojects included in the tranche being processed. In any case if major noncompliance is discovered in the course of the review of ongoing subprojects, a corrective action plan will be prepared and submitted to ADB.

VIII. GENDER AND SOCIAL DIMENSIONS

78. Although the primary focus of the Investment Program is on addressing the coastal erosion and coastal management, a significant number of poor including women are also likely to be beneficiaries of the sub-projects because of protection from losses and damages to their lands and houses and restoration of their livelihood and incomes. The Investment Program will promote community participation and income generation opportunities including some gender benefits. These initiatives will enhance the livelihood of the people directly affected by the shoreline erosion and promote sustainable social development. Coastal protection and management programs will create a number of economic opportunities some of which would have direct and indirect benefits to women. The major gender related covenants are (i) women

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will constitute up to 30% of beneficiaries of 50 communities that will be supported at each intervention district and (ii) Shoreline Management functions with have at least 30% representatives from women.

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Project Design and Monitoring Framework

79. The Project Design and Monitoring Framework (DMF) is shown in Table 24 below.

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Table 24: Design and Monitoring Framework

Design

Summary Performance

Targets/Indicators Data Sources/Reporting

Mechanisms Assumptions and

Risks

Impact Improved income and reduced poverty of the coastal communities in the sub-project areas of three coastal States

After 5 years of Program completion (2024): Higher per capita income

for coastal communities in the subproject areas

Contribution from tourism to State GDP increased

Poverty incidence in coastal communities reduced

Statistics on State

GDP and tourists and tourism-related economic activities

Human Development Index (HDI) and Below Poverty Level (BPL) for intervention districts

District and panchayat reports

Baseline data and BME reports

Assumption Stable socio-

political environment

States continue to support coastal protection

Climate change related environmental impacts are within predicted levels

Risk

Complexity of coastal process

Shifting population along coastlines may impact poverty reduction analyses

Outcome Protected and managed shorelines in the three States meeting the needs of stakeholders and the environment

At the end of the Program (2019): About 150 km of

coastline in the States protected and managed using soft technologies8 as required

Community and private sector participate in coastal protection and management

Number of businesses at intervention beaches increased by 15%

10% increase in coastal shipping and fish landings at intervention districts

CIMU data Space Application

Centre satellite imageries

Statistics from District Industry Centers, Trade Association of small and medium enterprises

Panchayat and rural development department statistics

Project progress reports

Baseline data and BME reports

Assumption

Coastal protection and management projects are implemented using highest technical standards

Risks

Implementation delays

Emergency measures due to natural calamities

Role of extraneous factors that impact data on

8 Such as artificial reefs, beach nourishment, dune management etc.

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overall economic growth

Organizational capacity to undertake maintenance and sustainability of subprojects

Outputs 1. Sustainable Plans and Management for Shorelines Developed 1.1 Participatory shoreline management plans to meet the long term needs for shoreline management for 3 State coastlines prepared and endorsed 1.2 Coastal management information system to support planning and management established

1.3 Project management system established and operational, and sub-projects for future tranches planned and designed

All plans are completed and endorsed by local bodies as stakeholders, and relevant planning authorities by 2013

Coastal management information system is functional in each states with linkages to central agencies

Staff are trained to manage and maintain the system

PMUs established, staffed (2010)

PMU staff trained (2011) Project manuals

prepared and fully operational (2011)

Consultants engaged and provide support (2011)

Designs for future tranches are approved by qualified professional

Shoreline Management Plans documents


ADB review missions


ADB review missions

Detailed operational guidelines

Consultants reports Project progress

reports ADB review missions Approved design

documents and supporting reports

Assumptions Government and

political support Active

stakeholder support and participation

Mechanisms and finance to update the plans are maintained

Assumption

Information and data are provided freely from relevant institutions

Risk Information

systems are not updated after completion of the project

Assumption

Sufficient counterpart funding

Engagement of qualified and experienced consultants

State Governments to officially constitute review panels

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technical review panel and endorsed by communities and stakeholders

2. Coastal Erosion and Instability Reduced 2.1 Coastal erosion and instability reduced

2.2 Community and private sector engaged in coastal erosion and instability reduction

3. Enhanced capacity for integrated shoreline planning and development 3.1 Enhanced capacity for districts and states to plan, design, and implement shoreline protection and management projects

Coastline subject to erosion is reduced to 380 km from the present level of 530 km

Community/local government resolution for purposes of maintenance of completed projects

50 communities with up to 30% women beneficiaries at each intervention district supported

Private sector investments in coastal protection and management up to 7% of total cost

Training provided to State/ Districts agencies, local experts/agencies, local bodies and stakeholders (2012)

Coastal Information Management Unit (CIMU) operational by 2012

Shoreline management plans are updated at five yearly intervals

Space Application Centre satellite imageries

Consultants reports Project progress

reports ADB review missions Baseline data and

BME reports

BME reports Project progress

reports ADB review missions Business licenses

application records .

PMU data on training Shoreline

management plan documents


ADB review missions

Assumptions

Stable socio political environment

Engagement of qualified and experienced consultants

Risks Delay in

implementation including procurement activities

Assumptions

Community and private sector supportive of coastal protection and management initiatives

Private

Sector appetite

Assumption

Government allows continuity of core trained coastal staff to remain in the coastal divisions

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3.2 Enhanced capacity for State/ Districts agencies, local experts/ agencies, local bodies and stakeholders to provide specialist support for planning, modeling, design, checking and review for coastal protection and management 3.3 Beaches are managed and maintained by the communities and stakeholders 3.4 SEAs formally mandated to coordinate all coastal protection and management programs

Adequate numbers of State/ Districts agencies, local experts/ agencies, local bodies and stakeholders trained

in application of new technologies.

50 staff at CWC, CWPRS and other central agencies trained

Shoreline Management involving local bodies as stakeholders with at least 30% representatives from women functional

Shoreline management active at each subproject site

Approved formal mandate as part of proposed shoreline planning and management policy

Approved Shoreline Planning and Management Policy

Appropriate notification by the States as required


ADB review missions


ADB review missions


ADB review missions

Assumption

States open to use of new technologies and related capacity building

Assumption States are

supportive of institutional reforms

Assumption

State support to the proposed activities

Risk

Procedural delays

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Activities with Milestones

Inputs

1. Preparatory Activities by SEAs 1.1 Establishment of PMU (Q4 2010) 1.2 Tendering and engagement of Project Management and Design Consultants (PMDC) (Q4 2010) 2. Output 1: Sustainable Plans and Management for Shorelines Developed 2.1 Preparation of shoreline management plans and information systems for whole 3 state coast coastline- preliminary plans (Q4 2011), approved plans (Q2 2012). 2.2 Updating of the long list of potential projects (Q1 2011). 2.3 Plan, identify, prescreen and prepare design of Tranches 3 (Q2 2012) and 4 subprojects (Q2 2014) 3. Output 2: Coastal Erosion and Instability Reduced 3.1 Contract out and implement detailed designs and construction works (Q1 2011-Q1 2019) 3.2 State guidelines for private sector participation in coastal protection and management (Q3 2011) 3.3 Identify effective areas of PPP(Q4 2O11) 4. Output 3: Enhanced Capacity for Shoreline Planning and Development 4.1 Preparation of training needs assessment and training plan (Q1 2011) 4.2 Implementation of training plan(Q2 2011 to Q4 2015)

4.3 Shoreline protection and management policy review (Q4 2011) 4.4 Draft guidelines and policy document(Q1 2012) 4.5 Agreed guidelines and approved policy (Q1 2013) 5. Loan Approvals and support(by ADB) 5.1 Program approval (Q3 2010) 5.2 Inception mission (Q1 2011 ) midterm review (Q2 2015), review missions (intermittent) 5.3 Total Project Tranche 1 (Q4 2010 to Q4 2014) Tranche 2 (Goa first loan) (Q4 2010 to Q4 2014) Tranche 3 (Q1 2013 to Q4 2016) Tranche 4 (Q1 2015 to Q4 2019)

ADB support consultants

PMDC, SEAs and statakeholders Training, institutional development Mobilization of counterpart funds PMU supported by PMDC ADB and Government funding

PMU staff resources PMDC

PMDC PSC, District Planning Bodies, and SEAs

Project Cost ADB $250.0 million Government $119.8 million Other Sources including Private sector $34.8 million Total $ 404.6 million Consulting services 1361 person-months (261 international and 1,100 national) consultancy, and 29 person-months of panel of experts

ADB = Asian Development Bank, BME = Benefit Monitoring and Evaluation, BPL = Below Poverty Lists, CIMU = Coastal Information Management Unit, CWC = Central Water Commission, CWPRS = Central Water and Power Research Station, GDP = Gross Domestic Product, HDI= Human Development Index, MOWR= Ministry of Water Resources, PMDC= Project Management and Design Consultants, PMU= Program Management Unit, PMDC = Project Management and Design Consultants, SEAs = State Executing Agencies.

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B. Monitoring

1. Project Performance Monitoring

80. The SEAs will establish and maintain an Investment Program Performance Management System (IPPMS) for the Facility and also project performance management system (PPMS) for individual projects under the Facility. The PPMS will be set up within 3 months of loan effectiveness of each project, whereas the IPPMS will be set up within 3 months of loan effectiveness of first project. Schedule 2 hereto sets as the Design and Monitoring Framework for the Facility, against which the implementation effectiveness will be evaluated. 81. SEAs will establish baseline data for each of the selected indicators and will conduct annual surveys with the assistance of the consultants, and update the States and ADB on the progress against each indicator. The SEAs will also provide India and ADB with quarterly progress reports in the format to be attached with the FAM, within 45 days of the end of each quarter. Quarterly reviews will be completed by the review meetings by the States, and ADB. 82. The project accounts will be audited annually and submitted by the SEAs to ADB. In addition to the regular review missions for each Loan, a midterm review mission for the Facility will be conducted in July 2014. The reviews will include a implementation progress including progress against institutional development and capacity development milestones. The midterm review will identify problems or weaknesses in implementation arrangements, and agree on changes needed. Within 3 months of physical completion, the SEAs will submit to ADB an project completion report for each project. Likewise within 3 months of the completion of the Facility, the SEAs will submit to ADB a Facility completion report.

2. Compliance Monitoring

83. Compliance for all the loan undertakings as described in the Sector road map will be jointly monitored by the SEA and ADB through quarterly updates provided by the PMU. In this respect, the PMU will submit to ADB a status report on the road map with the explanation and time-bound actions on partly or non-complied undertakings.

3. Safeguards Monitoring

84. Environmental Safeguards Monitoring is required during all three stages of a project, i.e. planning, construction and operation to record the mitigative actions taken and the resulting effects designed to either avoid or reduce predicted impacts. The preparation and oversight of any monitoring work is the responsibility of the Executing Agency and its consultant.

85. Monitoring during the planning stage usually takes place twice once to incorporate mitigative measures in the planning process and then at the end of that stage to monitor compliance. Construction monitoring takes place at regular intervals throughout the construction period, usually quarterly, with bi-annual monitoring reports.

86. Operating period monitoring is dependent on the types and duration if impacts identified during the environmental assessment, but usually are completed annually for t three years, for a variable time period.

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87. Some of the monitoring during both the construction and operating periods will require sample collection as well as field measurements.

4. Evaluation

88. ADB will field an inception mission within 3 months after signing of the FFA and the loan agreement for Project 1. Review missions will be carried out on a semiannual basis jointly by representatives of ADB and the SEA’s. The review missions will assess the status of the project implementation including procurement, civil works, financing, compliance to environmental and social safeguards, and sustainability. A mid-term review mission will be carried out about 2 years after each loan becomes effective. Each mid-term review will evaluate compliance with the terms, conditions, and undertakings set out in the FFA, environmental and social safeguards, and loan covenants set out in the loan agreements. The review will allow for any necessary midcourse corrections to ensure successful implementation and the achievement of the project objectives. Within 3 months of physical completion of each Project, the SEA will submit a project completion report to ADB.9

5. Reporting

89. The PMU will prepare quarterly progress reports and will submit them to ADB within 2 weeks from the end of the related quarter. Overall progress and compliance with conditions of the loan agreement will be monitored regularly and reviewed by ADB, consistent with existing project implementation requirements. Reports will include evaluation of issues and will recommend remedial actions.

90. The PMU will establish a project performance monitoring system within 6 months from loan effectiveness and collect baseline data for performance monitoring. The key indicators and assumptions outlined at the impact and outcome levels in the Investment Program’s design and monitoring framework will be the primary data required for analysis.

9 Project completion report format 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

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C. Stakeholder Communication Strategy

S. No. Project Information

Means of Communication

Who will provide

Audience Frequency

1. Projects sanctioned

Web SEAs All stakeholders At the time of sanctioned

2. Progress on subprojects

Web and field consultations

SEAs End users and other stakeholders

Quarterly basis

3. Project designed Consultations and stakeholder meetings


Intensely during the design stage

4. Safeguards Web, meetings and field level meetings


Regular basis as per need

5. Poverty and social development

Field level consultation meetings with all stakeholders


Regular basis as per need

6. Development outcomes and impact

Web, newsletters, workshops and seminars

SEAs Government of India, State Governments, Development partners, and other stakeholders

Annual basis

7. Procurement and consulting

Web and media SEAs All stakeholders

As per need

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X. ANTICORRUPTION MEASURES

91. The Government, States and SEAs are advised of ADB's Anticorruption Policy (1998, as amended to date). Consistent with its commitment to good governance, accountability and transparency, implementation of the Projects under the Facility shall adhere to ADB's Anticorruption Policy. ADB reserves the right to review and examine directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Projects under the Facility. In this regard, investigation of Government officials, if any, would be requested by ADB to be undertaken by the Government. To support these efforts, relevant provisions of ADB's Anticorruption Policy are included in the Loan Regulations and the bidding documents. In particular, all contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the SEAs and all contractors, suppliers, consultants, and other service providers as they relate to the Projects under the Facility.

XI. ACCOUNTABILITY MECHANISM

92. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.10

XII. RECORD OF FAM CHANGES

93. 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 FAM.11

Table 25: Sample Table for Recording FAM Changes

FAM Version Created Date Revision Date Reasons of Change

Main Contents of Change

10 For further information see: http://compliance.adb.org/. 11 The Road Fund and ADB shall ensure that changes to the FAM during Investment Program implementation must

be consistent with the FFA and applicable loan agreements.

http://compliance.adb.org/