Fourth Greater Mekong Subregion Corridor Towns Development ... · MPWT/DHU -Oversee full project implementation and administration. - Serve as focal agency to ADB and development

Project Number: 50099-003 Grant Number: August 2018

Lao People’s Democratic Republic: Fourth Greater

Mekong Subregion Corridor Towns Development

Project

Project Administration Manual

ABBREVIATIONS

ADB – Asian Development Bank CTDP – Corridor Towns Development Project DED – detailed engineering design DISC – Design and Implementation Support Consultant DMF – design and monitoring framework DMS – Detailed management survey DONRE – (provincial) department of natural resources and

environment DPWT – (provincial) department pf public works and transport EA – executing agency ECA – environmental compliance audit EGM effective gender mainstreaming EMP – environmental management plan FMA – financial management assessment FY – fiscal year GAP – gender action plan GMS – Greater Mekong Subregion GRM – Grievance Redress Mechanism HH – household IA – implementing agency ICB – international competitive bidding IEE – initial environmental examination MOF – Ministry of Finance MONRE – Ministry of Natural Resources and Environment NCB – national competitive bidding NGO – non-governmental organization O&M – operation and maintenance PAM – project administration manual PCU – project coordination unit PIU – project implementation unit PTRI – Public Works and Transport Research Institute SAO – State Audit Organization SCS – stakeholder communication strategy SOE – Statement of Expenditure SPS – Safeguards Policy Statement SWTP – Small-scale wastewater treatment plants TA – technical assistance TOR – terms of reference UDAA – Urban Development Administration Authority

TABLE OF CONTENTS

I. PROJECT DESCRIPTION 1

A. Summary 1 B. Impact and Outcome 1 C. Outputs 1

II. IMPLEMENTATION PLANS 2 A. Project Readiness Activities 2 B. Overall Project Implementation Plan 2

III. PROJECT MANAGEMENT ARRANGEMENTS 4 A. Project Implementation Organizations: Roles and Responsibilities 4 A. Key Persons Involved in Implementation 7 B. Project Organization Structure 8

IV. COSTS AND FINANCING 9 A. Cost Estimates Preparation and Revisions 9 B. Key Assumptions 9 C. Detailed Cost Estimates by Expenditure Category 10 D. Allocation and Withdrawal of Grant Proceeds 11 E. Detailed Cost Estimates by Financier 12 F. Detailed Cost Estimates by Outputs 13 G. Detailed Cost Estimates by Year 14 H. Contract and Disbursement S-Curve 15 I. Fund Flow Diagram 16

IV. FINANCIAL MANAGEMENT 17 A. Financial Management Assessment 17 B. Disbursement 18 C. Accounting 20 D. Auditing and Public Disclosure 20

VI. PROCUREMENT AND CONSULTING SERVICES 21 A. Advance Contracting and Retroactive Financing 21 B. Procurement of Goods, Works, and Consulting Services 21 C. Procurement Plan 22 D. Consultant's Terms of Reference 22

VII. SAFEGUARDS 22 B. Involuntary Resettlement 24 C. Indigenous Peoples 27

VIII. GENDER AND SOCIAL DIMENSIONS 27 A. Overall Objective and Strategy 27 B. Budget and Implementation Arrangements 27

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 29 A. Project Design and Monitoring Framework 29 B. Monitoring 29 C. Evaluation 30 D. Reporting 30 E. Stakeholder Communication Strategy 32

X. ANTICORRUPTION POLICY 38 XI. ACCOUNTABILITY MECHANISM 38 XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 39

ATTTACHMENTS 1. Procurement Plan 2. Terms of Reference of Project Implementation Consultant 3. Financial Management Assessment 4. Outline Quarterly Progress Report 5. Procurement Capacity Assessment TABLES Table 1: Project Implementation Organizations – Lao PDR 4 Table 2: Detailed Cost Estimates by Financier 12 Table 3: Detailed Cost Estimate by Outputs 13 Table 4: Detailed Cost Estimates by Year 14 Table 5: Contract Award 15 Table 6: Disbursement for ADB Grant 15 Table 7: Risk Assessment and Financial Management Action Plan 17

Project Administration Manual Purpose and Process

The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Ministry of Public Works and Transport (MPWT) and Department of Public Works and Transport (DPWT) are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the recipient and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by MPWT and DPWTs of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

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

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

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I. PROJECT DESCRIPTION

A. Summary 1. The project will support the government of the Lao People’s Democratic Republic (Lao PDR) in improving urban environmental services and enhancing regional economic connectivity in the towns of Paksan and Thakhek, which are located along the Greater Mekong Subregion (GMS) Central Corridor. It will finance the: (i) construction of sewerage networks and eight small-scale wastewater treatment plants (SWTP) to improve sanitation; (ii) construction of two controlled landfills and solid waste collection vehicles for municipal waste to improve waste collection and management; (iii) improvement of drainage and riverbank protection; (iv) rehabilitation of the old-town center at Thakhek to promote regional tourism; and (v) preparation of city master plans to promote regional economic connectivity. The project will accelerate urban node development along the GMS Central Corridor in Lao PDR. B. Impact and Outcome 2. Impact: Balanced regional and local development achieved.

3. Outcome: Urban services in Paksan and Thakhek improved.

C. Outputs

4. Output 1: Urban environmental infrastructure improved. The output will include (i) wastewater: four SWTPs with a combined capacity of 900 cubic meters per day (m3/day) for wastewater treatment and 20 kilometer (km) of new sewers in Paksan, and four SWTPs with a combined capacity of 800 m3/day for wastewater treatment and 7 km of new sewers in Thakhek; (ii) drainage: a 23-km and 9-km drainage network in Paksan and Thakhek, respectively; (iii) landfills: 220,000 m3 and 300,000 m3 landfill in Paksan and Thakhek, respectively; (iv) riverbank protection: 1,840 meters (m) and 4,230 m of embankment in Paksan and Thakhek, respectively; and (v) urban renewal and heritage conservation in Thakhek, including an 850-m riverfront promenade, renovation of the old-town square, and restoration and conversion of the post office building into a tourist center to promote sustainable tourism. 5. Output 2: Institutional effectiveness improved. The output will include: (i) training of 25 government staff on urban service delivery, asset management, operation and maintenance (O&M) of urban facilities, and other institutional arrangements for improving urban service delivery; (ii) increasing women’s representation in decision-making and technical positions in the project coordination unit (PCU) and in the project implementation units (PIUs) in Paksan and Thakhek; (iii) preparing urban development strategies and master plans with climate resilience and gender responsive measures for Paksan and Thakhek; and (iv) preparing financial sustainability plans for the Urban Development Administration Authority (UDAA) and Department of Public Works and Transport (DPWT) in Bolikhamxay Province and Khammouan Province, including budgeting, tariff setting for wastewater and solid waste management, and operational effectiveness.

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II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 1: Schedule of Project Readiness Activities

Indicative Activities

2018 2019

Responsible Individual/Unit/

Agency /Government

May Jun Jul Aug Sep Oct Nov Dec Jan

Project implementation arrangement established

MPWT, DPWTs

Advertisement of project management consulting service

ADB, MPWT

ADB Board approval

ADB

Grant signing

ADB, MEF

Government legal opinion provided

MOJ

Grant effectiveness

ADB, MEF

ADB = Asian Development Bank, DPWTs = Provincial Departments of Public Works and Transport, MOF = Ministry of Finance, MOJ = Ministry of Justice, MPWT = Ministry of Public Works and Transport, Sources: Asian Development Bank.

B. Overall Project Implementation Plan

6. The Project is expected to be implemented over a period of five years, beginning in January 2019 with completion by December 2023. The overall project implementation plan is shown in Table 2. The overall project implementation plan will be updated annually by the Ministry of Public Works and Transport (MPWT) and ADB based on actual physical progress.

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Table 2: Project Implementation Plan Activities 2018 2019 2020 2021 2022 2023 2024

A. Design and Monitoring Framework Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Output 1: Urban environmental infrastructure improved

1.1. Complete BDs for Drainage component

1.2. Complete BDs for SWM component

1.3. Complete BDs for WWT component

1.4. Complete BD for Thakhek Old Town component

1.5. Complete BDs for Riverbank Protection component

1.6. Complete engagement of Drainage contractor(s)

1.7. Complete engagement of SWM contractor(s)

1.8. Complete engagement of WWT contractor(s)

1.9. Complete engagement of Thakhek Old Town contractor(s)

1.10. Complete engagement of Riverbank Protection contractor(s)

1.11. Complete land acquisition and resettlement activities in Thakhek

1.12. Complete land acquisition and resettlement activities in Paksan

1.13. Complete construction of works

Output 2: Institutional effectiveness improved

2.1. Complete procurement of the PIC consulting service

2.2. Begin preparation of urban development strategy and master plans

2.3. Begin preparation of financial sustainability road map

2.4. Finalize urban development strategy and master plans

2.5. Financial sustainability road map developed

2.6. Begin on-the-job training for PCU and PIU staff

2.7. Completion of the PIC consulting service

B. Management Activities

Environment management plan key activities

Resettlement plan key activities

Gender action plan key activities

Communication strategy key activities

Grant reviews and project completion acivities

BD = bidding document; PIC = project implementation consultants; PCU = project coordination unit, PIU = project implementation unit, Q = quarter, SWM = solid waste management, WWT = wastewater treatment Source: Asian Development Bank.

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Table 3: Project Implementation Organizations – Lao PDR

Project Implementation Organizations

Management Roles and Responsibilities

Central Project Steering Committee

- Chaired by Vice Minister of MPWT, and formed among representatives from MOF, MPWT (DHU, DWSS), MPI, MONRE, provincial governments (Vice Governors) and District Governments (Mayors), Provicial DPWT Consult regulary with other relevant ministries, in particular MHA, MPT, MIC, and MICT.

- Hold periodic project steering meeting to address project implementation issues.

- Provide strategic guidance and support to the MPWT, PCU.

- Ensure compliance with grant covenants as agreed with ADB.

- Facilitate interagency and inter-ministerial coordination.

- Oversee project implementation and administration.

Executing Agency

MPWT/DHU - Oversee full project implementation and administration. - Serve as focal agency to ADB and development partners, government offices whose

coordination, endorsement or approval and monitoring activities are required and/or mandated by existing policies or laws.

- Establish and manage an advanced (advance) account for this ADB grant.

- Oversee project activities in each town.

- Approve rolling plans/program for implementation.

- Ensure compliance with grant covenants.

- Submit disbursement projections and ensure counterpart fund allocation.

- Approve procurement plans.

- Approve bidding process for contracts in accordance with Government and ADB regulations. Major bidding contracts and key implementation issues (including project extensions, budget reallocation etc.) to be approved at the Minister/Vice Minister level; general project administration activities to be approved at the DG-level.

- Ensure that project implementation complies with ADBs safeguard policy and provisions in the EMPs and RPs.

- Review and endorse any proposed change in the project scope or implementation arrangements.

- Administration of grant disbursements.

- Assist PCU as required.

PCU in DHU Project Management and Administration: - Coordinate, manage, and monitor project activities and assist the PIUs in project

implementation activities. Establish, maintain and update the project performance monitoring system.

- Prepare the consultants for project management, capacity building and awareness building.

- Coordinate and liaise with ministries and other agencies at national level on common policy, regulatory context, implementation procedures and financial issues

- Coordinate Central Project Steering Committee meetings. - Day-to-day coordination and liaison with the two PIUs to ensure policy, administrative

and financial compliance and ensuring project progress and quality control. - Provide the linkage between the two PIUs and communications to the EA, the NPSC

and other relevant agencies. - Review of design and tender documents, contract documents, bid evaluations,

contract variations, time extension, etc. - Provide views, guidance comments and suggestions to PIUs on matters relating to

project implementation. - Monitor project activities and the quality of the works. - Carry out periodic quality audit of the civil works contracts with the support of project

consultants.

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- Provide a quality check of procurement documents and withdrawal applications prior to submission (PCU endorsement required).

- Act as focal point for project agency coordination, and communication with ADB and relevant governmental agencies. Prepare consolidated project reports for submission to MPWT and ADB.

- Organize timely provision of agreed counterpart funds for project activities. - Establish project account. Set up and maintain a strong project financial management

system through Project Accounting Software. - Be responsible for project payments, as required, through the sub- accounts. - Coordinate timely audit of project accounts, and Prepare consolidated project reports

for submission to MPWT and ADB (updated procurement plans (18 month timeframe) in consultation with PIUs and submit to ADB for review and approval, project completion report, reports mandated under the grant agreements and the framework financing agreement to ADB external auditor report, disbursement-related documentation, etc.) and consolidate PIU reports and submit quarterly project progress reports to ADB in agreed format.

- Submit annual contract award and disbursement projections by December of each year.

- Provide support to ADB missions. Procurement

- Review and evaluate all bidding documents and process for further approval. - Send draft bidding documents to ADB for review and approval. - Form and approve a tender evaluation committee for NCB contracts. - Review and approve all bidding and evaluation reports. - Submit evaluation reports to ADB. - Procurement of goods. - Recruitment of consultant teams and manage contracts. - Apply e-procurement when possible. - Recruit and manage consultants under project. - Procurement of project vehicles and equipment of project administration. - Prepare updated procurement plans (18-month timeframe) in consultation with PIUs

and submit to ADB for review and approval. - Provide support and guidance to PIUs during procurement and contract management

process. - Advertise Invitation for Bids of works.

Technical Oversight and Support: - Technical Oversight and Support: Provide technical support and overall guidance to

PIUs, approve subproject proposals against subproject selection criteria, review and approve detailed engineering designs and estimates for NCB, approve any variations during execution of works contracts, and carry out periodic quality audit of the civil works contracts.

Safeguards Compliance: - Safeguards Compliance: Monitor and ensure compliance with ADB’s safeguards

policy and government requirements, obtain statutory clearances, coordinate for obtaining right of way clearances, review monthly PIU monitoring reports and submit consolidated semi-annual safeguards monitoring report to ADB, establish and manage project grievance redress mechanism and ensure project related grievances addressed satisfactorily within timely manner, and provide capacity support to PIUs.

Capacity Building: - Capacity Building Program: Oversee governance improvement and performance,

approve training and capacity building programs conduct training and capacity building programs, oversee public relations, oversee gender action plan and community development.

Implementing Agencies

Implementing Agencies: DPWT of Provinces of Khammouan and Bolikhamxay

- Approve and allocate counterpart budget for the PIUs. - Establish and manage an advanced (advance) account for this ADB grant.

- Assist interdepartmental coordination within the province.

- Communicate with the MPWT/DHU for project implementation progress and activities.

- Provide supports and actions for smooth land acquisition and resettlement activities.

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Provincial Steering Committees (established in each province)

- Chaired by Vice Governor of the Province, vice-headed by the District’s Mayor (and president of UDAA), and formed among representatives from DPWT, UDAA, DPI, DOF, Provincial Governor and District’s Governor’s offices, and other relevant provincial/districts institutions

- Consult regulary with PIU

- Hold periodic meeting to address project implementation issues in the province

- Provide strategic guidance and support to the DPWT and UDAA

- Ensure compliance with grant covenants as agreed with ADB

- Facilitate interagency coordination and participation of Villages in the activities of the project requiring their commitments

Project Implementation Units (PIU) in Provincial Departments of Public Works and Transport,

Project Management and Administration: - Implement day-to-day project implementation in project towns - Update the RPs and submit to PCU for endorsement prior to submitting to ADB for clearance

prior to implementation. - Update EMPs and validate costs in the project cost table. - Monitor implementation of RPs and submit monitoring reports to the PCU for endorsement

before submitting to EA and ADB. - Ensure environmental protection and mitigation measures (in the EMPs) are incorporated in

detailed designs and contract awards. - Ensure implementation of the EMPs and submit regular monitoring reports through the IAs to

the EAs. - Submit RPs to PCU and ADB for agreement prior to implementation. - Implement GAP, Poverty Reduction and Social Strategy, Stakeholder Participation Plan and

WU capacity building program. - Set up and maintain project financial management system and be responsible for project

payments through sub-project Account. - Liaise with PCU on project implementation. Submit regular (quarterly and annual) project

reports to the PCU. - Open subproject account. Set up and maintain project financial management system and be

responsible for project payments through sub-account. - Submit quarterly reports to PCU in agreed format and as required by PCU. - Maintain subproject and contract level accounting. - Submit claims to PCU. - Coordinate Provincial Project Steering Committee meetings. Procurement of Works: - Prepare detailed designs and procurement documents, bid evaluation and contract awards.

- Advertise Invitation for Bids.

- Manage procurement and conduct all bidding activities including civil works contracts and procurement of vehicles and equipment for SWM.

- Prepare all civil works bidding documents with consultants. - Endorse all civil works bidding documents and send to PCU for review and approval. - Advertise all civil works tenders using e-procurement (if available). - Submit evaluation reports to PCU for civil works contracts. - Sign and manage all civil works civil works contracts (with support from PCU). Technical Support: - Supervise contractors and ensure the quality of works. - Work closely with consultants. - Facilitate collection of data for detailed engineering designs. - Prepare progress report on each contract and include in quarterly reports to PCU and as

required by PCU. Safeguards Compliance: - Implement and monitor safeguards compliance (RPs, EMPs). - Obtain right of way clearances. - Prepare monthly monitoring reports and submit to PCU. Capacity Building: - Implement governance improvement. - Propose training and capacity building programs. - Ensure public outreach. - Implement GAP and community development.

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Asian Development Bank

- Regular liaison with PCU and EA.

- Review quarterly progress reports submitted by PCU, and follow up on any issues.

- Review auditor reports submitted by PCU.

- Review reports mandated under the grant agreement.

- Conduct annual, mid-term review missions.

- Review draft bidding documents for approval.

- Review bidding evaluation reports for approval.

- Review procurement plans for approval.

- Review recruitment of project implementation consultants.

- Review compliance with safeguards policy.

- Review project performance monitoring and evaluation reports.

- Review progress of capacity building programs. ADB = Asian Development Bank; DG = Director General; DHU = Department of Housing and Urban Planning; DOF = Department of Finance; DWSS = Department of Water Supply and Sanitation; DPWT = Department of Public Works and Transport; EA = executing agency; EMP = environmental management plan; GAP = gender action plan; MIC = Ministry of Industry and Commerce; GAP = gender action plan; MICT = Information Culture and Tourism; MOF = Ministry of Finance; MPI = Ministry of Planning and Investment; MPT = Ministry of Posts and Telecommunications; NSPC = national project steering committee PCU = project coordination unit; PIU = project implementation unit; RP = resettlemt plan; SWM = solid waste management. Sources: Asian Development Bank, Ministry of Public Works and Transport.

B. Key Persons Involved in Implementation

Executing Agency Ministry of Public Works and Transport

Officer's Name : Mr. Khamthavy Thaiphanchanh

Position : Director General – Department of Housing and Urban

Office Address : MPWT, Vientiane

Email address : [email protected]

Telephone No. : +856 21 412283

Asian Development Bank Officer's Name : Mr. Vijay Padmanabhan Position : Director, Urban Development and Water

Division

Office Address : 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines


Telephone No. : +63 2 632 6379/5613

Officer's Name : Mr. Sasank Vemuri

Position : Urban Development Specialist

Office Address : 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines


Telephone No. : +63 2 632 6153

Project Coordination Unit Officer's Name : Mme. Malychanh Sananikhom, Position : Director of Project Coordination Unit (PCU),

Department of Housing and Urban, MPWT Office Address : MPWT, Vientiane Email address : [email protected], Telephone No. : Tel: +856 21 253114

Project Implementation Unit-Paksan Officer's Name : Position : Email address : Telephone No. :

Project Implementation Unit-Thakhek Officer's Name : Position : Email address : Telephone No. :

mailto:[email protected]

mailto:[email protected]

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C. Project Organization Structure

Project Coordination

Unit

Government of the Lao PDR

Ministry of Finance

(Recipient)

ADB

National Level

Provincial/Municipal Level

Central Project Steering

Committee (MPWT, Chair)

Ministry of Public Works and Transport

Department of Housing and Urban

(Executing Agency)

Provincial Department of Public Works and

Transport Project Implementation

Unit-Bolikhamxay Province

Provincial Department of Public Works and

Transport Project Implementation

Unit- Khammouan Province

Provincial Project Steering

Committee (PPSC)

Provincial Project Steering

Committee (PPSC)

Project Implementation

Consultant

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IV. COSTS AND FINANCING

A. Cost Estimates Preparation and Revisions 7. The cost estimate was prepared jointly by ADB and implementing agencies using April 2018 prices. The cost estimate will be revised at the Grant midterm review stage (planned in 2021). B. Key Assumptions 8. The following key assumptions underpin the cost estimates and financing plan:

(i) Exchange rate: Kip 8,300 = $1.00 (as of 23 January 2018). (ii) Price contingencies based on expected cumulative inflation over the

implementation period are as follows:

Table 4: Escalation Rates for Price Contingency Calculation

Item 2019 2020 2021 2022 2023 2024 Average

Foreign rate of price inflation 1.5% 1.5% 1.6% 1.6% 1.6% 1.6% 1.57%

Domestic rate of price inflation 2.5% 3.0% 3.0% 3.5% 3.5% 3.5% 3.17% Source: Asian Development Bank.

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C. Detailed Cost Estimates by Expenditure Category

Table 5: Detailed Cost Estimates by Expenditure Category

Item

KIP billion $ million % of Total Base Cost Local Foreign Total Local Foreign Total

A. Base Costa,b

1 Civil Works

201.92

134.62

336.54 23.47 15.65 39.12 84.0%

2 Goods and Equipment 8.77 5.85 14.62 1.03 0.68 1.71 3.6%

3 Land Acquisition and Resettlement 10.45 - 10.45 1.24 - 1.24 2.6%

4 Project Implementation Consultant 17.24 11.50 28.74 2.01 1.34 3.34 7.2%

5 Incremental Administration 6.26 4.18 10.44 0.73 0.48 1.21 2.6%

Subtotal (A)

244.65

156.14

400.79 28.47 18.15 46.62 100.0%

B. Contingencies c

1 Physical contingencies 26.48 16.88 43.36 3.08 1.96 5.04 10.8%

2 Price contingencies 14.77 5.80 20.57 1.72 0.67 2.39 5.1%

Subtotal (B) 41.25 22.68 63.93 4.80 2.64 7.44 16.0%

Total (A+B) 285.90 178.82 464.71 33.27 20.79 54.06 116.0% a Includes taxes and duties of $4.13 million. The government will finance value-added taxes and duties through exemption and cash contribution for staff salaries. b In April 2018 prices. c Physical contingency is 11.1%. Price contingency is based on foreign inflation rates of 1.5% in 2018 to 2020, 1.6% from 2021 and onwards; and local inflation rates of 2.0% in 2018, 2.5% in 2019, 3.0% from 2020 to 2021 and 3.5% from 2022 and onwards. Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank estimates.

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D. Allocation and Withdrawal of Grant Proceeds

No. Item Amount

Allocated ($)

Percentage and Basis for Withdrawal from Grant Account

1 Works, Good and Consulting Services 40,160,000 100.0% of total amount claimed*

2 Incremental Administration** 1,210,000 100.0% of total amount claimed

3 Unallocated 6,630,000 0.0%

Total 48,000,000 * Exclusive of taxes and duties imposed within the territory of the Recipient. ** Expenses related to support staff and operating costs of the implementing agencies inclusive of office supplies, fuel, and IT equipment. Source: Asian Development Bank estimates.

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E. Detailed Cost Estimates by Financier

Table 6: Detailed Cost Estimates by Financier ($million)

Item

Grant ADB-ADF Government Total

Amount % Amount %

A. Base Costa,b

1 Civil Works 35.56 90.9% 3.56 9.1% 39.12

2 Goods and Equipment 1.56 90.9% 0.16 9.1% 1.71

3 Land Acquisition and Resettlement - 0.0% 1.24 100.0% 1.24

4 Project Implementation Consultant 3.04 90.9% 0.31 9.1% 3.34

5 Incremental Administration 1.21 100.0% - 0.0% 1.21

Subtotal (A) 41.37 88.7% 5.26 11.3% 46.62

B. Contingenciesc

1 Physical contingencies 4.47 88.7% 0.57 11.3% 5.04

2 Price contingencies 2.16 90.2% 0.24 9.8% 2.39

Subtotal (B) 6.63 89.2% 0.80 10.8% 7.44

Total (A+B) 48.00 88.8% 6.06 11.2% 54.06 a Includes taxes and duties of $4.13 million. The government will finance value-added taxes and duties through exemption and cash

contribution for staff salaries. b In April 2018 prices. c Physical contingency is 11.1%. Price contingency is based on foreign inflation rates of 1.5% in 2018 to 2020, 1.6% from 2021 and

onwards; and local inflation rates of 2.0% in 2018, 2.5% in 2019, 3.0% from 2020 to 2021 and 3.5% from 2022 and onwards. Note: Numbers may not sum precisely because of rounding. Note: Expenses related to support staff and operating costs of the implementing agencies inclusive of office supplies, fuel, IT equipment

and the purchase of six vehicles Source: Asian Development Bank estimates.

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F. Detailed Cost Estimates by Outputs

Table 7: Detailed Cost Estimates by Outputs ($ million)

No. Item

1a. Paksan Urban Services Improved

1b. Thakhek Urban Services Improved

2. Improved Institutional

Effectiveness

Total Amount % of Cost Category

Amount % of Cost

Category Amount

% of Cost Category

A. Base Costa,b

1 Civil Works 39.12 17.19 44% 21.93 56% - 0%

2 Goods and Equipment 1.71 1.19 69% 0.52 31% - 0%

3 Land Acquisition and Resettlement 1.24 0.41 33% 0.83 67% - 0%

4 Project Implementation Consultant 3.34 - 0% - 0% 3.34 100%

5 Incremental Administration 1.21 - 0% - 0% 1.21 100%

Subtotal (A) 46.62 18.78 40% 23.29 50% 4.56 10%

B. Contingenciesc

1 Physical contingencies 5.04 2.03 40% 2.52 50% 0.49 10%

2 Price contingencies 2.39 0.96 40% 1.20 50% 0.23 10%

Subtotal (B) 7.44 2.99 40% 3.71 50% 0.73 10%

Total (A+B) 54.06 21.8 40% 27.0 50% 5.28 10% a Includes taxes and duties of $4.13 million. The government will finance value-added taxes and duties through exemption and cash contribution for staff salaries. b In April 2018 prices. c Physical contingency is 11.1%. Price contingency is based on foreign inflation rates of 1.5% in 2018 to 2020, 1.6% from 2021 and onwards; and local inflation rates of 2.0% in 2018, 2.5% in 2019, 3.0% from 2020 to 2021 and 3.5% from 2022 and onwards. Source: Asian Development Bank estimates

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G. Detailed Cost Estimates by Year

Table 8: Detailed Cost Estimates by Year ($ million)

Item 2019 2020 2021 2022 2023 Total

A. Base Costa,b

1 Civil Works - 21.78 16.49 0.85 - 39.12

2 Goods and Equipment - 1.71 - - - 1.71

3 Land Acquisition and Resettlement 1.24 - - - - 1.24

4 Project Implementation Consultant 1.10 0.86 0.78 0.41 0.19 3.34

5 Incremental Administration 0.48 0.18 0.18 0.18 0.18 1.21

Subtotal (A) 2.83 24.54 17.45 1.44 0.37 46.62

B. Contingenciesc

1 Physical contingencies 0.31 2.65 1.89 0.16 0.04 5.04

2 Price contingencies 0.15 1.26 0.90 0.07 0.02 2.39

Subtotal (B) 0.45 3.91 2.78 0.23 0.06 7.44

Total (A+B) 3.28 28.45 20.23 1.67 0.43 54.06 a Includes taxes and duties of $4.13 million. The government will finance value-added taxes and duties through exemption and cash contribution for staff

salaries. b In April 2018 prices. c Physical contingency is 11.1%. Price contingency is based on foreign inflation rates of 1.5% in 2018 to 2020, 1.6% from 2021 and onwards; and local

inflation rates of 2.0% in 2018, 2.5% in 2019, 3.0% from 2020 to 2021 and 3.5% from 2022 and onwards. Source: Asian Development Bank estimates.

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H. Contract and Disbursement S-curve

Table 9: Contract Award

Q1 Q2 Q3 Q4 Total

2019 3.04 0.31 0.00 7.18 10.53

2020 0.00 0.00 0.00 8.68 8.68

2021 8.23 13.93 0.00 0.00 22.16

2022 0.00 0.00 0.00 0.00 0.00

2023 0.00 0.00 0.00 6.63 6.63

2024 0.00 0.00 0.00 0.00 0.00

TOTAL 48.00

Note: Includes contingencies

Table 10: Disbursement for ADB Grant

Q1 Q2 Q3 Q4 Total

2019 0.25 0.56 0.14 0.14 1.09

2020 0.14 0.47 0.86 0.86 2.33

2021 0.86 1.73 3.86 4.03 10.47

2022 4.03 4.03 4.03 3.70 15.78

2023 3.14 3.14 3.14 2.27 11.70

2024 0.00 0.00 3.31 3.32 6.63

TOTAL 48.00

Note: Includes contingencies

Figure 1: ADB Contract Award and Disbursement

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I. Fund Flow Diagram

Notes: ADB – Asian Development Bank MOF – Ministry of Finance PCU – Project Coordination Unit PIU - Project Implementation Unit

Funds flow Documents flow

PIU-Khammouan

Sub-account

PIU-Bolikhamxay

Sub-account

PCU

Sub-account

MOF

Advance Account

Consultants / Contractors /

Suppliers

ADB

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V. FINANCIAL MANAGEMENT

A. Financial Management Assessment 9. The financial management assessment (FMA) was conducted in June to July 2017 in accordance with ADB’s Financial Management Technical Guidance Note (May 2015). Primary data were gathered through the FMA questionnaire from the EAs and IAs, and interviews with the relevant government officials. Secondary data were taken from the FMA reports of previous project. The FMA covered the following aspects: (i) organization and staff capacity, (ii) information management, (iii) funds flow arrangement, (iv) safeguard of assets, (v) strengths and weaknesses, (vi) accounting policies and procedures, (vi) audit, and (vi) project financial reporting system. The summary of risk assessment and financial management action plan is in Table 11.

Table 11: Financial Management, Internal Control and Risk Assessment Risk Description Impact Likelihood Risk

Assessment Mitigation

Measures / Risk Management

Plan

Timeline

Inherent Risk

Country Specific- High dependence on external financing for investment budget with severe shortage of funds for operation and management. Entity Specific- Assets, after procurement / completion of construction, are turned over officially to user government entity and recorded in the Fixed Asset Register of the receiving entity. These assets are not monitored/ inventoried regularly. There is a risk of loss of asset not monitored and maintained properly.

High

High

Likely

Likely

High

High

EA to prepare tariff road map to reduce dependence on national government subsidy for O&M. Update Fixed Asset Register every year during and after project implementation. Train government staff in fixed asset management including linkage to asset preventive maintenance activities.

Within 6 months after mobilization of project implementation consultant. Within 3 months after the completion of construction/ procurement for each grant financed asset.

Entity Specific – Recording of actual revenues and expenditure is weak in the provincial and town levels which may result to lack of accountability.

High Likely High Review compliance of the two provincial and two town governments in the implementation of the Budget Law. Identify deficiencies and include a training program in the

During first year of project implementation (2019).

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Risk Description Impact Likelihood Risk Assessment

Mitigation Measures / Risk

Management Plan

Timeline

Capacity Building component of this project.

Overall Inherent Risk High

Project Risk

Implementing Agency (PIU) – Lack of knowledge /training in ADB procurement, disbursement and reporting standards may result to delays in project start up. Reporting and monitoring – The PIUs are unfamiliar with the accounting softweare that is currently used by the PCU for GMS2 and will be used for GMS4 and given to the PIU to record transactions and for report preparation.

High

High

Unlikely

Likely

Substantial

Substantial

Train project staff in ADB procurement and financial reporting prior to project start up. Train PIU staff on the use of project accounting and monitoring software.

During first year of project implementation (2019). Within 6 months after mobilization of project implementation consultant.

Overall Control Risk Substantial

Overall Risk High ADB = Asian Development Bank, DPWT = Department of Public Works and Transport, EA = Executing Agency, GMS = Greater Mekong Subregion, MEF = Ministry of Finance; MPWT = Ministry of Public Works and Transport, O&M = operations and maintenance; PIU = project implementation unit, PMU = project management unit, Q = quarter.

B. Disbursement

1. Disbursement Arrangements for ADB Funds

10. The grant proceeds will be disbursed in accordance with ADB’s Grant Disbursement Handbook (2017, as amended from time to time), and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available.1 Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control. 11. Advanced fund procedure. The default payment method for all contracts is through Direct Payment procedures. The use of advance fund procedure maybe used for incremental administration activitie and subject to ADB approval. The Ministry of Finance (MOF), on behalf of the government, will establish an advance account for this ADB grant at the National Bank of Lao. Separate advance account should be established and maintained by MPWT/PCU. Each of two provincial governments/DPWTs will have a subaccount for the ADB grant. The currency of the advance accounts is the US dollar. The advance accounts are to be used exclusively for ADB’s share of eligible expenditures. The MPWT and the two provincial governments who administer the

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

http://wpqr4.adb.org/disbursement_elearning

19

advance account is accountable and responsible for proper use of advances to the advance account including advances to the sub-accounts. 12. The total outstanding advance to the advance accounts should not exceed the estimate of ADB’s share of expenditures to be paid through the advance accounts for the forthcoming 6 months. The MPWT and the two provincial governments may request for initial and additional advances to the advance accounts based on an Estimate of Expenditure Sheet2 setting out the estimated expenditures to be financed through the accounts for the forthcoming 6 months. Supporting documents should be submitted to ADB or retained by the recipient, the MPWT, and two provincial governments in accordance with ADB’s Grant Disbursement Handbook (2017, as amended from time to time) when liquidating or replenishing the advance accounts. Capable and trained staff must be recruited prior to use the advance fund and SOE procedures.

13. Statement of expenditure procedure (SOE).3 The SOE procedure may be used for reimbursement of eligible expenditures or liquidation of advances to the advance account(s). The ceiling of the SOE procedure is the equivalent of $100,000 per individual payment. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB’s disbursement and review missions, upon ADB’s request for submission of supporting documents on a sampling basis, and for independent audit. Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB.

14. Before the submission of the first withdrawal application (WA), the recipient should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per WA is stipulated in the Grant Disbursement Handbook (2017, as amended from time to time). Individual payments below such amount should be paid (i) by the MPWT and subsequently claimed to ADB through reimbursement, or (ii) through the advance fund procedure, unless otherwise accepted by ADB. The recipient should ensure sufficient category and contract balances before requesting disbursements. 15. The MPWT/PCU will be responsible for: (i) preparing disbursement projections; (ii) requesting budgetary allocations for counterpart funds; (iii) collecting supporting documents; and (iv) preparing and sending withdrawal applications to the MOF for onward submission to ADB. The PCU will also be responsible for checking and signing off on all disbursement documents prior to submission to MOF. In case contractual staff salaries are required to be covered by ADB grant proceeds under incremental administration costs, it must be claimed through reimbursements.

2. Disbursement Arrangements for Counterpart Fund 16. The MPWT/PCU will be responsible for the disbursement and liquidation procedures for government funds and will (i) prepare disbursement projections and (ii) request budgetary allocations for counterpart funds. The government will finance value added taxes and duties through exemption and cash contribution for staff salaries. The government will also finance insurance for all cost categories except civil works. Project management staff salaries and

2 Estimate of Expenditure sheet is available in Appendix 8A of ADB’s Grant Disbursement Handbook (2017, as

amended from time to time), 3 SOE forms are available in Appendix 7B and 7D of ADB’s Grant Disbursement Handbook (2017, as amended from

time to time).

20

supplements will also be covered by counterpart funds. Appendixes 3A and 3B of the ADB’s Grant Disbursement Handbook (2017, as amended from time to time) provide further guidance on the proper presentation of local taxes and duties financing in the detailed cost estimate by financier and allocation table in the grant agreement. 17. The MPWT/PCU completes the Government Withdrawal Application Form and attaches a statement of actual expenditure. Supporting expenditure documentation must be maintained by the project team for subsequent review by State Audit Organization (SAO) for audit. The Government Withdrawal Application Form must be signed by the authorized signatories of the MPWT. C. Accounting

18. The MPWT/PCU will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project consistent with the Chart of Accounts and Budget Classification of the Government (2007) and Government’s Standard Operating Procedures for Externally-Financed Projects and/or Programs. The MPWT/PCU will prepare project financial statements in accordance with the government’s accounting laws and regulations, which are consistent with international accounting principles and practices. D. Auditing and Public Disclosure

19. The MPWT/PCU will cause the detailed consolidated project financial statements to be audited in accordance with International Standards on Auditing, equivalent national standards adopted by Lao PDR by SAO or an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by the executing agency.

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

21. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

22. The government, executing agency, and implementing agency have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.4 ADB reserves the right to require a change in

4 ADB’s approach and procedures regarding delayed submission of audited project financial statements:

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

(ii) When audited project financial statements are not received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a)

21

the auditor (in a manner consistent with the constitution of the recipient), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project’s financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

23. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.5 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s opinions, and audited entity financial statements will not be disclosed.6

VI. PROCUREMENT AND CONSULTING SERVICES A. Advance Contracting and Retroactive Financing 24. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (2015, as amended from time to time) and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The recipient, MPWT/PCU and two provincial government/DPWTs have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project. 25. Advance contracting. The advance contracting packages includes consulting service. The steps to be conducted in advance for recruitment of consultants will include: soliciting and evaluating expressions of interest, shortlisting, and (for firms) preparation of and evaluation of proposals. Contracts for civil works and consultants will only be awarded after the grant becomes effective

B. Procurement of Goods, Works, and Consulting Services

26. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines (2015, as amended from time to time). 27. International competitive bidding (ICB) will be used for works contracts estimated to cost $3 million and above. National competitive bidding (NCB) will be used for works contracts estimated to cost over $100,000 equivalent up to below $3 million. For NCB, the first draft English language of the procurement documents (bidding documents, and draft contract) should be submitted for ADB approval regardless of the estimated contract amount. Subsequent procurements are subject to post review. All ICB packages (bidding document, bid evaluation report, and draft contract) are subject to ADB prior review and approval.

inform the executing agency of ADB’s actions; and (b) advise that the grant may be suspended if the audit documents are not received within the next 6 months.

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

5 Public Communications Policy: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications 6 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2011. Public Communications Policy. Paragraph 97(iv) and/or 97(v).

http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

22

28. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C. 29. All consultants and nongovernment organizations (NGOs) will be recruited according to ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).7 The outline terms of reference (TOR) for project implementation consultants (PIC) are detailed in Section D. The consulting firm will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality–cost ratio of 90:10. C. Procurement Plan 30. The Procurement Plan is included as Attachment 1. D. Consultant’s Terms of Reference 31. Detailed TOR for the Project Implementation Consultants, which will be the sole consulting firm recruited for the project, are included in Attachment 2. E. Procurement Capacity and Risk Assessment 32. The Procurement Capacity Assessment was carried out for the project stakeholders, including the MPWT, DPWTs of Bolikhamxay and Khammouan provinces, and the Paksan and Thakhek UDAA, Municipal Offices, and other provincial departments, identified the infrastructures and facilities that will be included in the Project. A summary of findings from the procurement assessment is included in Attachment 3. The procurement risk is assessed as “high.”

VII. SAFEGUARDS

33. All safeguard documents have been prepared in accordance with ADB’s Safeguards Policy Statement (SPS, 2009). In compliance with ADB’s information disclosure and consultation requirements, the safeguard documents will be posted on ADB’s website. The safeguard categorization for environment and involuntary resettlement is B, and indigenous peoples is C. 34. Relevant safeguard documents include: (i) the initial environmental examination (IEE); (ii) environmental management plans (EMPs), one for each town (Paksan and Thakhek); and (iii) resettlement plans (RPs) for Paksan and Thakhek. Refer to the action plans in the EMPs, and RPs for detailed implementation guidance. 35. Project safeguards grievance redress mechanism (GRM). ADB’s SPS requires that the recipient establish and maintain a GRM to receive and facilitate resolution of affected peoples’ concerns and grievances about the recipient’s social and environmental performance at project level. MPWT shall ensure that: (i) efficient GRMs are in place, functional and relevant focal points are trained to assist the affected persons resolve queries and complaints, if any, in a timely manner; (ii) all complaints are registered, investigated and resolved in a manner consistent with the provisions of GRM reflected in the RP and EMP; iii) complainants/aggrieved persons are kept informed about status of their grievances and remedies available to them; and (iv) adequate staff and resources are available for supervising and monitoring the mechanism.

7 Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation

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

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

23

The GRM is described in the RP and IEE. 36. Information disclosure. The draft RPs will be disclosed on ADB website before SRM and the draft IEE before board approval. PCU will disclose on MPWT website. EMPs and RPs will be translated into Lao language and provided to the PIUs to be made available to interested stakeholders on request. PMU shall distribute the Project Information Booklets containing summary of the projects impacts as per final RP, the GRM detailed guidelines with procedures and forms, contacts of the GRC members in local language amongst the Ahs. Project Information Booklets prepared at various stages of the project should include up-to-date information in an understandable language and be widely disseminated to affected persons in a timely manner. The final IEEs and RPs will be updated and disclosed following detailed engineering design (DED). Semi-annual safeguard monitoring reports will be disclosed following review by ADB. 37. Public Consultation. The preliminary project design was informed by consultations carried out with stakeholders and affected persons. Consultation will be ongoing during implementation, as described in the safeguard documents and the Stakeholder Communication Strategy. PCU shall ensure consultations are carried out during update of the safeguards documents following DED. Consultation will include individual and focus group discussions to ensure the affected households are informed about: (a) resettlement impacts, asset valuation/RCS, entitlements and compensation payment modalities with timelines; (b) rehabilitation and income restoration measures suggested for the project affected persons; (c) environmental impacts and mitigation measures; and (d) project GRM. 38. During implementation, there should be regular liaison with affected persons and community, consultation meetings with communities in the project area of influence and with project affected persons, including women and vulnerable groups, to ensure project related information is regularly shared. 39. Prohibited investment activities. Pursuant to ADB’s SPS (2009), 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 (2009). A. Environment

40. The Project is classified as category B for environment according to the ADB’s SPS (2009). The infrastructure components for the towns of Paksan and Thakhek have been screened to check conformity with the safeguard requirements of ADB and the Government of Lao PDR. The identified environmental impacts are largely positive and beneficial on the long-term because of improvements in urban environment, sanitation, and climate resilience of communities. The subprojects are not expected to cause irreversible adverse environmental impacts and any impacts can be mitigated through integration of environmental elements in the engineering design of the subproject components and the implementation of environmental management and monitoring measures during construction and operation.

41. The IEE report with EMP for each town have been prepared based on preliminary engineering designs, survey of the sites, and consultations with the relevant agencies and stakeholders. The EMPs specify the measures to mitigate adverse impacts of the subproject components and identifies the key institutions and indicative costs for implementation. The IEEs also contain a grievance redress mechanism that will facilitate the resolution of complaints during implementation.

24

42. The IEEs and EMPs will be updated and finalized during the DED phase and will form part of the bidding and contract documents. The assimilative capacities of the receiving water bodies of the storm water drainage improvements and decentralized wastewater treatment solutions will be reviewed to ensure that flooding is induced by the project. Local groundwater and human uses surrounding the proposed landfills will be assessed to safeguard communities. Baseline environmental studies that includes assessment of impacts on hydrology, groundwater, surface water, air quality, noise, ecology, and soil quality will be conducted as part of the updated IEEs. Information disclosure and follow-up public consultations will be undertaken with affected stakeholders during detailed design in accordance with ADB’s Public Communications Policy. Concerns raised by stakeholders will be incorporated in the updated IEEs and EMPs. As required by ADB SPS (2009) for existing facilities, an environmental compliance audit (ECA) will be undertaken on the existing dumpsites to determine existence of areas which may cause or is causing environmental risks or impacts and to identify corrective actions to address the environmental issues and ensure that these are avoided or addressed during subproject implementation. The results of the ECA on existing dumpsites and the corrective action plan shall form part of the updated IEEs. The TOR for the conduct of the ECA has been developed.

43. The EA will ensure that each subproject complies with the environmental requirements and standards as stipulated in the Law on Environmental Protection No. 29/NA and other Ministerial Instructions and directives. An Initial Environmental Impact Assessment will be submitted to the Department of Natural Resources (DONRE) for Paksan subproject while a full environmental impact analysis report for the Thakhek subproject will be submitted to Ministry of Natural Resources and Environment (MONRE) to secure the government’s Environmental Compliance Certificate prior to project implementation.

44. A Project Implementation Consultant (PIC) with Environment Specialists (1 international and 1 national) will be commissioned to provide support to MPWT and DPWT. Sufficient budget through the PIC will be allocated for the conduct of baseline studies and ECA, updating of the IEE, preparation of Initial Environmental Impact Assessment and environmental impact analysis for DONRE/MONRE, implementation of the EMP and environmental monitoring plan and post-closure monitoring of existing dumpsites. The PIC will work in close coordination with the Public Works and Transport Research Institute (PTRI) of the MPWT in ensuring the project’s compliance with environmental safeguards identified in the EMP. An Environment Safeguards Officer under the PTRI will be engaged and assigned to the project to sustain the environmental management and monitoring activities of MPWT. Capacity building program on environment safeguards will be undertaken by the PIC through hand-on training for the PTRI, PCUs, PIUs, and other relevant units and agencies.

B. Involuntary Resettlement

45. The safeguard category for Involuntary Resettlement is B. Two resettlement plans (RPs) have been prepared for the sub projects which will trigger land acquisition and resettlement impacts. The RPs are provided for the towns of Paksan and Thakhek.

46. A total of 62,555 m2 will be acquired in Paksan Town and 219 affected households will be affected. Of the 219 affected households (AHs), 61 HHs will be affected by the drainage improvement component, while 107 HHs will be impacted by the riverbank protection component. A further 48 households will be impacted by the waste water and collection systems and 3 HHs by the water treatment plant. The impacts on the livelihoods of AHs are all minor (less than 10% of productive land or structures) and no relocation will be required. The majority of impacts are due to the riverbank protection, but no households are significantly impacted. The cost is estimated

25

to be $499,513 which includes base costs, allowances, and contingencies.

47. A total area of 86,835 m2 will be affected by the subproject components. 27,505 m2 of residential land, agricultural land covering 56,955 m2; government land covering 1,108 m2 and 1,267 m2 of commercial land will be acquired in Thakhek Town. 1000 trees of various species will also be affected. The total number of households affected by land acquisition for the proposed drainage improvements, river bank protection, decentralized wastewater treatment solutions and landfill is 288 AHs. With an average household size of 5 members8 the estimated total number of affected persons is 1,437. Impacts will be minor and/or temporary in nature for 249 households, whereas 39 households are identified as severely affected. The riverbank improvements will have severe impacts on 31 households of which 24 households will be relocated and there are significant impacts with land acquisition affecting over 10% of land for 7 households. The relocation is due to loss of 100% of land parcels and or residential structures. There is also one household that will experience a 20% loss of their commercial land as part of the wastewater network. In addition, there are 7 AHs who will be severely impacted at the solid waste facility. These are waste pickers that are at risk of economic displacement of which 6 of these AHs will require relocation from the proximity of the land fill to a safe distance away but allowing access in order to continue their livelihood activities. There are in total 21 affected people at the solid waste facility. There are a total of 39 severely affected households, (31 HH affected by the riverbank improvements, 7 waste picker HHs and 1 related to the waste water network that will require commercial land acquisition) therefore the number of people that will experience significant impacts is 170. The cost is estimated to be $1,052,932 million, which includes base costs, allowances, external monitoring and contingencies.

48. Project information has been disclosed to affected persons throughout the project preparation and a project information booklet will be updated and distributed during Detailed Measurement Survey (DMS). Resettlement documents have been prepared in consultation with local communities and are in accordance with ADB’s SPS and Lao laws and regulations. The documents have been endorsed, approved and posted on the ADB website. A grievance redress mechanism will help to facilitate resolution of complaints regarding project performance. A rapid appraisal on the severity of impacts shall be conducted in the early stages of DED. The RPs will be updated and disclosed after DED and cleared by ADB prior to contract awards. An independent external monitor will be recruited as early as possible to monitor implementation and in particular, the impacts on severely affected households.

49. The Project will be implemented by MPWT as the executing agency (EA) through the Project Coordination Unit (PCU) in Vientiane and Project Management Unit (PMU) in each town, which will support the EA to undertake overall oversight and management of the Project. It will be supported by implementation consultants to ensure that procedures are followed and that the implementation schedules are kept on track.

50. A PMU has been established at the MPWT to carry out the day to day tasks in the overall implementation of the Project. The PMU will be responsible for the preparation of the RPs with the assistance from the project implementation consultants. The PMU’s task includes the following:

• Allocate a dedicated Social Safeguards officer to oversee the timely implementation of the resettlement plans;

• Submit the RP to MPWT for approval and concurrence by ADB;

8 SES Result conducted by PPTA Consultant and average value is used when HH data is not available

26

• Secure prior approval by MPWT and concurrence from ADB for any variations in approved RP;

• Prepare a data base of the AHs that includes their affected assets gathered during the preparation and updating of the RP;

• Ensure all government requirements are complied with; and

• Monitor and prepare progress reports on RP implementation.

51. The PIC together with the PMU will assist MPWT in preparing and updating the RP through the conduct of the DMS in a participatory and transparent way and consistent with the project resettlement policy. Once approved by DONRE and reviewed and concurred by ADB, the PIC will provide technical advice in the implementation of the approved RP. The PIC will likewise provide capacity-building orientation and skills training, as needed, to concerned personnel of the PMU and other agencies that maybe involved in resettlement implementation.

52. The PIC will provide technical support to the PCU at the EA level to: (i) conduct the rapid appraisal to determine severity of impacts; (ii) ensure that screening and periodic project reviews are carried out; (iii) coordinate the reporting activities of the PCU; and (iv) monitor and coordinate project related procurement to ensure compliance with safeguard requirements; including conducting and documenting consultations and the Grievance Redress Mechanism. The EA/IAs will oversee the implementation of the different subproject components and enforce the implementation of the social safeguard requirements.

53. Together with the PMU, the PIC will supervise civil works activities to ensure that the contractors adhere with the terms of their contract relative to avoiding and/or minimizing resettlement impacts, in addition to ensuring that contractors provide the necessary compensation and/or assistance to the AHs prior to and/or during construction activities. The PIC will assist the PMU in regular monitoring of RP implementation. The PMU is also responsible for responding to complaints from residents or businesses affected by the project works through the Grievance Redress Mechanism.

54. The PCU, in coordination with the DISC is responsible for designing, implementing, and documenting a Grievance and Redress Mechanism for environmental, safety, and social concerns. The mechanism shall be communicated during consultations and made available to affected people. Grievances shall be recorded and addressed in a timely manner.

55. The resettlement plans will be updated following the DED. No economic or physical displacement will occur until compensation and all other entitlements have been paid to the affected hosueholds.

56. A grievance redress mechanism (GRM) has been designed to ensure that the concerns and complaints of the AHs are readily addressed in a timely and satisfactory manner. The AHs will be made fully aware of their rights through verbal and written means during resettlement planning, updating, and implementation. This mechanism will be free to access and have numerous entry points including contractors’ camps and village offices.

57. Temporary resettlement impacts due to the removal and subsequent reconstruction of driveways and road crossing culverts will occur during the construction/improvement of roadside drainage canals located inside the existing road right-of-way (ROW). As part of its contracts, the civil works contractor will carry out the removal and restoration of said driveways and culverts to pre-project conditions.

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C. Indigenous Peoples

58. The project is classified as category C in accordance with ADB’s Safeguard Policy Statement (2009). ADB’s Indigenous People’s policy requires that under an ADB grant, the recipient will undertake meaningful consultation with affected Indigenous Peoples to ensure their informed participation in (i) designing, implementing, and monitoring measures to avoid adverse impacts on them or, when avoidance is not possible, to minimize, mitigate, and compensate for such effects; and (ii) tailoring project benefits that accrue to them in a culturally appropriate manner. Consultation will be carried out in a manner commensurate with the impacts on affected communities.

VIII. GENDER AND SOCIAL DIMENSIONS

A. Overall Objective and Strategy

59. The project is categorized as Effective Gender Mainstreaming (EGM). In accordance with EGM requirements, the present Gender Action Plan (GAP) has been prepared (Table 12). Identified gender issues include generally lower income of female-headed households (FHHs), comprising 13.7% of HHs in Paksan, 14.1% in Thakhek (weighted average), than male-headed HHs resulting in FHHs paying significantly greater proportion of their income for utilities; limited participation in decision-making and representation in the water and sanitation sector of female staff, limiting more gender responsive urban service delivery; women’s increased responsibilities as caregivers for sick family members, arising from poor environmental sanitation and in household/community clean-up activities during and post flood events; disruptions to school attendance by girls and boys due to flooded and muddy road limited access, arising from inadequate drainage and solid waste services; safety concerns for children and disabled people due to poor road conditions; mobility and income disruption concerns for self-employed traders/vendors (majority female) due to poor road conditions, limited safe and attractive vending locales. In Paksan, self-employment as trader is the most common occupation for women 40% and in Thakhek 37%. In total for both towns 39% of the female income earners are self-employed traders.

60. The project’s gender mainstreaming strategy supports gender equality in the delivery of project benefits and women’s participation in the water and sanitation sector. Key measures include (i) provision of free waste water connections to all households in service areas and to the poor, including FHHs that qualify as poor; (ii) free solid waste collection services for poor HHs, including FHHs that qualify as poor, (iii) female staffing targets in the PCU and PIUs; (iv) targeted capacity development training for female government staff (urban planning and management, project management and M&E, UDAA staff training in O&M, including performance indicators, asset inventory and management); (v) riverbank protection and urban renewal investments include specific design features, which enhance livelihoods of vendors/traders, who are predominantly female; (vi) measures to enhance occupational safety and livelihood security for existing waste pickers (predominantly female); and (vii) collection and monitoring of sex-disaggregated data with gender sensitive indicators will be established in the Project Performance Monitoring System (PPMS).

B. Budget and Implementation Arrangements

61. Cost for free solid waste collection for poor HHs and gender design features for riverbank protection/urban enhancement and landfill management are included in the civil works budget. The GAP budget is $195,000 of which $165,000 is allocated for two Social Development and

28

Gender Specialists (5 PM international and 21 PM national) under the PIC budget. The consultancy also includes additional specialists (capacity development and training) who would support GAP implementation.

62. Ministry of Public Works and Transport, through DHU (EA) and DPWT in Bolikhamxay and Khammouan provinces (IA) will be responsible for GAP implementation, monitoring and reporting. The project will coordinate with LWU to mobilize women’s participation and ensuring project benefits. A qualified Social Development/Gender Officer will be recruited by the PCU. He/she will work full-time the first 2 years and intermittent afterwards to support gender mainstreaming within DHU and across it’s projects. Designated counterpart Social and Gender staff in project implementation units (PIUs), supported by the PIC, will guide overall GAP implementation.

Table 12: Gender Action Plan

Output 1. Urban environmental infrastructure improved Responsible

1a. Wastewater connections to 2,900 HHs, including 320 FHHs and 75 low-income/poor

HHs provided. (2017 baseline: 0). TARGET 1 1b. Free household re-plumbing grants to connect to waste water collection system for poor HHs, including FHHs who qualify as poor. TARGET 2 1c. Free solid waste collection services for poor HHs, including FHHs who qualify as poor. ACTION 1

PCU/PIU UDAA

1d. Riverbank protection and urban renewal investments in Thakhek include specific design features9 to enhance livelihoods of vendors/traders (predominantly female). ACTION 2

1e. Two controlled landfills with capacity volume of at least 530,000 m³ include waste pickers enhanced occupational safety and livelihood security10 (2017 baseline: 37 people, of which 21 are women). TARGET 3

Output 2. Institutional effectiveness improved

2a. 25 government staff (including 10 women) reporting increased knowledge on urban service delivery, O&M of urban facilities and service agreements and other institutional arrangements for improving service delivery (2018 baseline: 0) TARGET 4 2b. Women’s representation in PCU will be 35% (baseline: PCU core staff 50% women) (2013 baseline MPWT: 25% at ministry level); TARGET 5Paksan 2c. Women’s representation in PIUs will be 30% women (baseline: women in technical positions in all provincial departments: 25% in Bolikhamxay, 39% in Khammouan) TARGET 6 2d. Urban development strategy and master plan, with climate resilience and gender responsive measures, developed and approved Paksan and Thakhek (2018 baseline: N/A) ACTION 3 2e. PPMIS include sex-disaggregated data and gender-sensitive monitoring indicators by Q1 2019. TARGET 6

PCU/PIU

FHH= Female-headed households, GAP = Gender Action Plan; LWU= Lao Women Union, M&E = monitoring and evaluation; PCU = Project Coordination Unit; PIU= Project Implementation Unit; PPMIS - Performance Monitoring and Information System; UDAA = Urban Development Administration Authority.

9 Livelihood enhancement design features include street lighting, public toilets for men and women, and platform

constructed along river embankment for vending. 10 Occupational safety and livelihood security measures include formalized employment contracts with Urban

Development Administration authority (UDAA), toilet and washing facilities, covered employee rest area, and safety equipment.

29

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION A. Project Design and Monitoring Framework 63. The design and monitoring framework (DMF) is available in the report and recommendation of the President.

B. Monitoring 64. Project performance monitoring. A project performance monitoring system (PPMS) will be established to include the targets, indicators, assumptions, and risks in the DMF. The PPMS will take into account the important monitoring parameters in addition to those included in DMF. The baseline data corresponding to indicators and targets for the DMF targets and PPMS will be collected by the grant consultants. The PIUs with support of consultants will conduct annual surveys and quarterly monitoring of output and outcome indicators, and submit the results in quarterly progress reports to the PMO throughout project implementation. The PMO will consolidate the results and submit quarterly progress reports (QPRs) to ADB. QPRs will include a section on the compliance of contractors with core labor standards in contract preparation and implementation (hiring, construction) periods. These quarterly progress reports will provide information necessary to update ADB's project performance reporting system and include financial information.11 Results of a comprehensive completion survey will be included in the project completion report prepared by the project implementation consultants. Moreover, to help monitor contracts, MPWT with their own existing resources and capacity will input all contracts into their GIS system. 65. Compliance monitoring. The status of compliance with grant covenants, including policy, legal, financial, economic, environmental, and other requirements, will be monitored and reported by the PMO in close coordination with the PIUs, through the quarterly progress reports submitted by the PMO to ADB. All non-compliance issues, if any, will be updated in quarterly progress reports together with remedial and time-bound actions. Each ADB review mission (at least twice a year) will monitor the status of compliance with grant assurances and raise the non-compliance issues with the government and agree on remedial and time-bound actions. 66. Safeguards monitoring. The PCU will submit separate environment and social semi-annual safeguard monitoring reports (EMR and SMR) to ADB, which will be disclosed on ADB’s website. The monitoring reports will be prepared by the PCU safeguards officers, with inputs from the consultants. The status of safeguards implementation, compliance issues, and progress of corrective actions, if any, will be clearly reported to ADB. The status of safeguards implementation will also be discussed at each ADB review mission with necessary issues and agreed actions recorded in aide memoires.

67. An Independent external monitor (IEM) is responsible for monitoring of all activities related to the updated RP and its implementation; and, to assess whether affected households are able to restore their living conditions, livelihoods and incomes to pre-subproject levels and, if not, to recommend remedial actions to assist affected households. The IEM will review resettlement activities and the process prior to contract awards. For instance, the IEM may review the DMS, payment of compensation and allowances, resettlement, rehabilitation and income restoration activities, public meetings and consultations, and the grievance redress process. The IEM will

11

ADB's project performance reporting system is available at: http://www.adb.org/Documents/ Slideshows/ PPMS/default.asp?p=evaltool.

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

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

30

conduct a review of resettlement activities associated with each civil works contract. The IEM will prepare a report and submit it to PCU and ADB for no objection prior to the award of civil work contracts. The IEM will also complete a final review of resettlement activities, which will be annexed to the Government’s project completion report.

68. The PMU and district resettlement committee (DRC) will support the work of the IEM in the following ways: (i) collect all data relevant for compensation from affected households during the DMS and make all DMS data, official affected person lists and other relevant data available to the IEM; (ii) assist the IEM, as required, during follow-up data collection and consultations with affected persons; and (iii) facilitate the IEM to participate in, monitor and receive relevant information about resettlement activities.

69. Gender and social dimensions monitoring. The GAP implementation progress will be closely reviewed and monitored at each ADB review mission and incorporated in the quarterly progress reports submitted to ADB. A sex disaggregated database will be developed, and data regularly updated during implementation. The evaluation of GAP implementation will be carried out as part of benefit monitoring, including at project completion. Core labor standards, including equal wages for women and men for work of equal value, will be closely monitored.12 C. Evaluation 70. A project inception mission will be scheduled shortly after project effectiveness, expected by February 2019. Implementation review missions will be held every three to six months. A midterm review is tentatively scheduled for 2021. Within 6 months after physical completion of the project, MPWT will submit a project completion report to ADB.13 D. Reporting 71. MPWT/DHU (executing agency) will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and the executing agency audited financial statement together with the associated auditor's report, should be adequately reviewed. Table 13 summarizes the key reporting requirements during project implementation.

12 ADB's Handbook on Social Analysis: A Working Document, is available at:

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

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

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

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

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

http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-%20%20Sector-Landscape.rar

http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-%20%20Sector-Landscape.rar

31

Table 13: Key Reporting Requirements for Each Subproject

Report Reference Timing of Reporting Responsible Agency

Project Performance Management System

- Develop comprehensive project performance management system procedures - Reporting of baseline and progress data including DMF, GAP, EMP, RP and other relevant targets

Project Agreement, Schedule, paragraphs

- No later than 6 months after grant effectiveness - Semiannual, included in the periodic project progress reports

- PCU/PIUs (with PIC)

Project Progress Report

- Reporting of baseline and progress data, summary of progress with EMP, RP, social development and gender implementation and summary of actions taken in respect of any grievances raised.

Project Agreement, Schedule, Article

- Quarterly (one month after each quarter)


Audited Project Accounts and Financial Statements with Auditor's Opinion

- Reporting on project account and financial management


- Not later than six months after the closure of fiscal year (end of June)

- MEF - PCU/PIUs (with PIC)

Environment Monitoring Report

- Periodic safeguards report including environment monitoring during the construction and operation phase (until PCR is issued)


- Semiannual (January–June and July–December) in July and January


Resettlement Monitoring Report

- Periodic report including RP during the construction

Grant Agreement Schedule, Article

- Semiannual (January–June and July–December) in July and January


- Resettlement completion report

Grant Agreement, Schedule, Article

- Within three months after completion of the construction

Social Development and Gender Monitoring Report

- Reporting on social aspects and GAP implementation


- Semiannually in the project progress report (January and July)


Project Completion Report

- Reporting on overall implementation after the subproject completion


- Not later than six months after the physical completion of the sub project


DMF = design and monitoring framework, EMP = environmental management plan, GAP = gender action plan, MOF = Ministry of Finance, PCR = project completion report, PCU = project coordination unit (Ministry of Public Works and Transport), PIC = project implementation consultants, PIUs = project implementing units (Provincial Department of Public Works and Transport), RP = resettlement plan.

32

E. Stakeholder Communication Strategy

72. To ensure inclusiveness, transparency, timeliness and the meaningful participation14 of stakeholders in the project a stakeholder communication strategy (SCS) has been prepared (Table 14). The strategy serves to inform and support community development, enhance government agency capacity to manage project outcome and outputs, enhance project benefits and mitigate negative impacts. The SCS has the following objectives:

(i) Timely information flow of project components and benefits to enhance impact, particularly for the poor, women, and vulnerable people;

(ii) To establish two-way information feedback mechanisms with stakeholders; (iii) To raise public awareness on urban environmental sustainability through focusing

upon wastewater management, solid waste management and corridor town development initiatives; and

(iv) To promote gender equity generally and with a particular focus on women’s empowerment and access to economic opportunities.

73. Key stakeholders include: (i) government agencies in the Project Implementation Units (PIUs) that is headed by Provincial Department of Public Works and Transport (DPWT), and include representatives from Lao Women’s Union (LWU), Public Health Department, DONRE and others (e.g. Lao Front), involved in implementation of the project; (ii) utility companies who provide essential urban infrastructure services and facilities (e.g., UDAA); (iii) the private sector such as business communities and solid waste collection company (Shinnawath in Thakhek), (iv) residents in urban villages, civil society and NGOs (Sengsavanh), and (v) media.

74. Communication and awareness raising campaigns regarding environmental sanitation, flood mitigation/prevention/emergency risk management, project benefits, potential social risks and mitigation measures, status and progress information to citizens will be managed by the PIU and the relevant provincial departments, with the support from Village Authorities. The LWU will provide support to implementation of specific gender related communication needs.

75. The SCS activities will be organized in cooperation between the PIU and the relevant provincial departments, the Project Implementation Consultant (PIC), Municipality and Village Authorities, an NGO and the private sector. The responsibility for implementing the strategy will be shared between several stakeholders:

(i) The PIUs will have the overall responsibility for updating and implementing the SCS and will be in overall charge of the activities.

(ii) The Village Authorities will mobilize and inform communities and NGO will assist in dissemination of information and conduct awareness raising activities.

(iii) The media (local/national) will provide support through production of TV programs.

76. Resources required: Implementation of the Stakeholder Communication Strategy will be supported supported by 1 International Social Development and Gender Specialist (5 person-months) and 1 national Resettlement/Social/Gender Specialist (21 person-months). Further, the

14 Meaningful participation is defined as a process that ((i) begins early in the project preparation stage and is carried

out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. ADB Safeguard Policy Statement 2009.

33

PIU in each town will appoint a qualified Social Development and Gender Focal Officer to support the activities.

77. The Stakeholder Communication Strategy activities are included in the Capacity Building budget headings: A4 - Awareness raising campaigns: $97,000, and A5 – Enhancement of local economic development opportunities: $39,800, in total $136,800.

78. The Stakeholder Communication Strategy actvities will be organized from the outset of the project and will continue throughout implementation. Capacity development of stakeholders will be held in the beginning of the project. Information, Awareness Raising and Education (IAE) materials will be developed in accordance with the progress of activities. The PPTA Household Survey found that the preferred communication channels are national TV (27% of HHs), directly from your local government representative (22%), Community meetings (17%), and village loudspeakers (17%).

34

Table 14: Stakeholder Communication Strategy

Objective Key Risks / Challenges

Main Stakeholders

Key

Messages

Means of Communication

(Channels/ Languages/ Activities)

Timeline Responsibility Resources

(Human, $)

Timely information flow of project components and benefits particularly to poor, women, and vulnerable people.

▪ Limited/lack of locally relevant IAE-material and TV-radio programs.

▪ Only youth use social media (Face book).

▪ PIU ▪ District PWT ▪ Provincial and

District Resettlement Committee/Secretariat

▪ UDAA ▪ LWU ▪ Village Heads ▪ Lao Front ▪ Local media ▪ Beneficiaries ▪ Local Private

sector ▪ Public Health

Department ▪ Information &

Culture Department

▪ Importance of waste water and solid waste management.

▪ Project’s terms for access to benefits, free waste water connections, grant for re-plumbing.

▪ Awareness/messaging on tariffs: the need for, levels and use of tariffs, tariff structure and low tariffs for ID Poor HHs.

▪ Solid waste collection: tariffs and terms,

▪ Component implementation phases.

▪ Project impacts – both positive and negative.

▪ Relocation and compensation procedures.

▪ Expected participation of the communities.

▪ Key behaviour-change messages to communities in Lao.

▪ TV shows/information spots.

▪ Village meetings. ▪ Loudspeaker

messages. ▪ Awareness sessions

(15 per town) to disseminate Project objectives etc.

▪ From outset of project and throughout project life in accordance with progress of activities.

▪ Outset of project:

+ Creation of IAE materials and messages on Components.

+ Training of Trainers/ stakeholders.

▪ PIU ▪ Lao Front ▪ PIC

▪ Funds through the Capacity Building Program.

▪ Consultancy cost for Community Participation and Social Development and Gender Specialist and national Resettlement/ Social/Gender Specialist

▪ Vocational training financed under the Resettlement Plan

35


Main Stakeholders

Key

Messages




(Human, $)

To establish two-way information sharing/ dialogue mechanisms with stakeholders.

▪ Women’s limited participation in consultations and decision-making due to cultural barriers, traditional gender relationships and time constraints.

▪ Vulnerable groups like the poorest people, and the disabled have no time or lack means to attend meetings.

▪ Low motivation to participate in consultations related to enforcement of wastewater management, and solid waste and landfill management in accordance with Lao PDR regulations.

▪ PIU ▪ LWU ▪ Village Heads ▪ Lao Front ▪ Beneficiaries ▪ Local private

sector

▪ Role of stakeholders’ consultation in project Components.

▪ Present feed-back/grievance mechanisms for AHs.

▪ Solid waste collection: neighbourhood options for collection methods in presently un-serviced area.

▪ Village meetings ▪ Group discussions ▪ Communities

Workshops ▪ Local media

Use of participatory methods and tools

▪ From outset of project and throughout project life in accordance with progress of activities.

▪ PIU ▪ LWU ▪ Lao Front ▪ Village

Authorities

36


Main Stakeholders

Key

Messages




(Human, $)

To raise public awareness on urban environmental sustainability through focusing upon wastewater management, drainage, solid waste management and enhancement of urban spaces

▪ Beneficiaries’ and private sector lack of motivation to participate.

▪ Limited/lack of locally relevant IAE-material and TV-radio programs

▪ PIU ▪ UDAA ▪ LWU ▪ Village

Authorities ▪ Lao Front ▪ Local media ▪ Beneficiaries ▪ Private sector ▪ PONRE,

Environment sector

▪ Provincial Public Health (PPH)

▪ ‘Our city - clean city – green city’.

▪ ‘Your waste, your responsibility’.

▪ ‘Recycling waste save both money and the environment’.

▪ ‘Benefits and take up of improved wastewater collection, drainage and wastewater treatment*

▪ ‘Tariff levels and the use of tariffs,

▪ Pilot demonstration initiative with community participation in a large area of each town to contribute to urban beautification and efficiency of the drainage system by reducing illegal dumping of solid waste in public areas.

▪ TV program on national network.

▪ Print IAE materials ▪ Separate meetings

held for women ▪ Six awareness/

participatory meetings on the content and benefits expected from cultural heritage sub-components.

▪ Six awareness/ participatory meetings on flood-caused economic losses affecting residents, mitigation and prevention/ emergency initiatives

▪ From outset of project and throughout project life in accordance with progress of activities

▪ + Training of stakeholders

▪ PIU ▪ UDAA ▪ Provincial

Department of Information, Culture and Tourism (PDICT)

▪ Provincial Public Health (PPH)

▪ LWU ▪ Lao Front ▪ Village

Authorities

To promote gender equity generally and with a particular focus upon women empowerment, women’s access

▪ Low interest from men due to traditional gender roles and norms.

▪ Limited/lack of locally relevant IAE-material and TV-radio programs

▪ PIU ▪ LWU ▪ Provincial

Department of Labour and Social welfare (PDLSW)

▪ Village Heads ▪ Private sector ▪ CSOs/NGOs

▪ Gender equity and women’s empowerment in all aspects of components implementation: female staffing targets, project employment

▪ Education and awareness rotating sessions (8 per Town) in selected villages on how urban services and infrastructure can improve living conditions and

▪ PIU ▪ LWU ▪ Provincial

Department of Labour and

37


Main Stakeholders

Key

Messages




(Human, $)

to economic opportunities.

opportunities for women.

▪ Information on opportunities for vocational and skills training for AHs, including eligible FHHs financed under the RP

▪ Employment and livelihood support opportunities for women in urban services improvement process.

▪ Risks of human trafficking.

encourage economic activities.

▪ Group discussions with men and women together.

▪ Printed IAE materials ▪ TV programme on

national network.

Social welfare (PDLSW)

▪ Lao Front ▪ Village

Authorities

38

X. ANTICORRUPTION POLICY

79. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.15 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.16

80. To support these efforts, relevant provisions are included in the grant agreement and the bidding documents for the project. In particular, all contracts financed by ADB in connection with the project will include provisions specifying the right of the ADB to audit and examine the records and accounts of the EAs and all contractors, suppliers, consultants, and other service providers as they relate to the project.

81. Full information disclosure and participatory monitoring at both central and local levels are expected to be effective in reducing the risk of corruption and improving governance at central and local levels.

82. The EA/IA will prepare a grievance redress mechanism acceptable to the ADB and ensure that there is an appointed officer, with the requisite capacity in the PMU/PIUs to receive, resolve or act upon, both independently and expeditiously, complaints or grievances or reports from stakeholders on misuse of funds and other irregularities relating to the project, or the specific project components. Each PIU will inform stakeholders of their right to submit complaints or grievances relating to the project.

83. Project-specific measures to enhance governance and prevent corruption designed along with the stages of project implementation and the disbursement chain in mind, include the requirement for the PMU/PIAs to follow government rules and procedures for all expense and revenue items including cash and the proper and accurate maintenance of financial records.

XI. ACCOUNTABILITY MECHANISM

84. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.17

15 Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf. 16 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp. 17 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.

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

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

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

39

XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

85. The PAM will be subject to change after ADB Board approval of the project and during the period of project implementation. All revisions and updates of the PAM made should be recorded in this section to provide a chronological history of the changes to the implementation arrangements recorded in PAM.

86. Key sections of the first draft of the PAM were discussed and agreed upon during the ADB Grant Fact Finding in June 2018.

87. This draft PAM was updated on 31 July 2018 based on ADB’s internal review and management approval in preparation for grant negotiations. The PAM was agreed during the technical discussions (upgraded to grant negotiations) with the government on 7 August 2018.

Attachment 1

PROCUREMENT PLAN

Basic Data

Project Name: Fourth Greater Mekong Subregion Corridor Towns Development Project

Project Number: 50099-003 Approval Number:

Country: Lao People’s Democratic Republic Executing Agency:

• Ministry of Public Works and Transport

Project Procurement Classification: NA Implementing Agency:

• Department of Public Works and Transport of Bolikhamxay province

• Department of Public Works and Transport of Khammouan province

Procurement Risk: NA

Project Financing Amount: $54.06 million ADB Financing:

- Grant: US$ 48.00 million Non-ADB Financing:

- Government of LAO PDR: $ 6.06 million

Project Closing Date: 30 June 2024

Date of First Procurement Plan: 1 February 2018 Date of this Procurement Plan: 07 August 2018

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

a. Procurement and Consulting Methods and Thresholds

1. 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 Comments

International Competitive Bidding (ICB) for Works

$3,000,0001 and above

National Competitive Bidding (NCB) for Works2

Beneath that stated for ICB, Works

The first NCB is subject to prior review, thereafter post review.

National Competitive Bidding for Goods2 Beneath that stated for ICB, Goods

The first NCB is subject to prior review, thereafter post review.

Shopping for Works Below $100,000

Shopping for Goods Below $100,000 1 Refer to PAI 3.03 Appendix 2 for International Competitive Bidding 2 Refer to Para. 3 of PAI 3.05 for National Competitive Bidding

Consulting Services

Method Comments

Quality and Cost Based Selection (QCBS) Prior. Request for proposal, evaluations and contracts.

Individual Consultant Selection Prior. Expression of interest, evaluations and contracts.

b. Goods and Works Contracts Estimated to Cost $1 Million or More

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

2 Attachment 1

Contract No.

General Description

Estimated Contract

Value ($ million)

Procurement Method

Review

(Prior/ Post)

Bidding Procedur

e

Advertise-ment or IFB

Date

Comments

DR-CW01

Lot 1: Paksan Stormwater Drainage

3.25

ICB Prior 1S1E Q3 2019 Prequalification of Bidder: No Bidding Document: Small Works

Lot 2: Thakhek Stormwater Drainage

3.93

DEWATS = decentralized wastewater treatment solutions ICB=International Competitive Bidding, IFB=invitation for bidder, NCB=National Competitive Bidding, NA=Not Applicable, W=Works. *Note: Estimated Contract Values – ADB financed portion

c. Consulting Services Contracts Estimated to Cost $100,000 or More 3. The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Contract No.

General Description

Estimated Contract

Value ($ million)

Recruitment Method

Advertisement Date

(quarter/year)

Type of Proposal

Comments

CS-01 Project Implementation Consultant (PIC) Team

2.82 QCBS Q3-2018

FTP Assignment: International Quality-Cost Ratio: 90:10

FTP=full technical proposal, QCBS=quality cost-based selection. *Note: Estimated Contract Value – ADB financed portion

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

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

Package Number

General Description

Estimated Value

Number of Contracts

Procurement

Method

Review [Prior /

Post/Post (Sampling)]

Bidding Procedure

Advertisement Date

(quarter/ year)

Comments

GD-01 Vehicles for project administration

240,000 1 NCB Post 1S1E Q2/2019

Package includes six vehicles

GD-02 Project Equipment

70,000 1 Shopping Prior Shopping Q1/2019

-

GD-03

SWM Equipment for Paksan and Thakhek

950,000

1

NCB

Prior

1S1E

Q1/2019

-

Attachment 1 3

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment

Method

Review (Prior / Post)

Advertisement Date

(quarter/ year)

Comments

CS-02 Safeguard Specialist (Environment)

80,000 1 ICS Prior Q4/2018 -

CS-03 Safeguard Specialist (Resettlement)

60,000 1 ICS Prior Q4/2018 -

CS-04 Independent Monitor

80,000 1 ICS Prior Q4/2018 -

*Note: Estimated Contract Values – ADB financed portion

2. Indicative List of Packages Required Under the Project 5. The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period). Goods and Works

Package Number

General Description

Estimated Value

(cumulative)

Estimated Number

of Contracts

Procurement

Method

Review [Prior /

Post/Post (Sampling

)]

Bidding Procedur

e Comments

DWAT-CW02

Lot 1: Paksan DEWATS units

4.76

1 ICB Prior 1S1E Prequalificati

on of Bidder: No Bidding Document: Large/Small Works

Lot 2: Thakhek DEWATS units

3.47

PS-CW03 Lot 1: Paksan municipal solid waste

3.85 1 ICB Prior 1S1E Prequalification of Bidder: No Bidding Document: Large/Small Works (excluding equipment)

Lot 2: Thakhek municipal solid waste

3.89

RB-CW04

Lot 1: Paksan Riverbank protection for San River

4.52 1 ICB Prior 1S1E Prequalification of Bidder: No Bidding

4 Attachment 1

Package Number

General Description

Estimated Value

(cumulative)

Estimated Number

of Contracts

Procurement

Method

Review [Prior /

Post/Post (Sampling

)]

Bidding Procedur

e Comments

Document: Large/Small Works

Lot 2: Thakhek Riverbank protection for Mekong River

8.57

TK-CW05 Thakhek Urban renewal, heritage conservation

0.83 1 NCB Prior 1S1E Prequalification of Bidder: No Bidding Document: Small Works

*Note: Estimated Contract Values – ADB financed portion

Consulting Services

Package Number

General Description

Estimated Value

(cumulative)

Estimated Number of Contracts

Recruitment Method

Review

(Prior /

Post)

Type of Proposal

Comments

3. List of Awarded and On-going, and Completed Contracts 6. The following tables list the awarded and on-going contracts and completed contracts.

1. Awarded and On-going Contracts

Goods and Works

Package

Number

General Description

Estimated Value

Awarded Contract

Value

Procurement

Method

Advertisement Date

(quarter/ year)

Date of ADB

Approval of

Contract Award

Comments

Consulting Services

Package

Number

General Description

Estimated

Value

Awarded Contract

Value

Recruitment Method

Advertisement Date

(quarter/year)

Date of ADB

Approval of

Contract Award

Comment

Attachment 1 5

2. Completed Contracts

Goods and Works

Package

Number

General Descripti

on

Estimated

Value

Contract Value

Procurement

Method

Advertisement

Date (quart

er/ year)

Date of ADB

Approval of

Contract Award

Date of Completi

on

Comments

Consulting Services

Package

Number

General Descripti

on

Estimated

Value

Contract Value

Recruitment Metho

d

Advertisement Date (quarter/

year)

Date of ADB

Approval of

Contract

Award

Date of Completion

Comments

4. Non-ADB Financing 7. The following table lists goods, works and consulting services contracts over the life of the project, financed by Non-ADB sources.

Goods and Works

General Description

Estimated Value

(cumulative) ($ million)


Procurement Method

Comments

Consulting Services

General Description

Estimated Value

(cumulative) ($ million)


Recruitment Method

Comments

Auditor 0.03 1 CQS -

6 Attachment 1

5. National Competitive Bidding

A. Regulation and Reference Documents

8. The procedures to be followed for National Competitive Bidding (NCB) shall be those set forth for “Public Bidding” in Prime Minister’s Decree No. 03/PM of the Lao People’s Democratic Republic, effective 09 January 2004, and Implementing Rules and Regulations effective 12 March 2004 with update 0861/MOF of 05 May 2009 entitled “Amendments of Some Articles of Implementing Rules and Regulations on Decree Of Government Procurement Of Goods, Works, Maintenance And Services”, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines.

B. Procurement Procedures

a. Procurement Plan

9. Contract packages subject to NCB procedures will be those identified as such in the project Procurement Plan. Any changes to the method of procurement from those provided in the Procurement Plan shall be made through updating of the Procurement Plan, and only with prior approval of ADB.

b. Eligibility

10. The eligibility of bidders shall be as defined under Section I of the Procurement Guidelines; accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in Section I of the Guidelines, as amended from time to time.

c. Preferences

11. No preference of any kind shall be given to domestic bidders or for domestically manufactured goods. 12. Suppliers and contractors shall not be required to purchase local goods or supplies or materials.

d. National Sanctions List

13. National sanctions lists may be applied only with prior approval of ADB.

e. Advertising

14. The posting of NCB specific notices for contracts valued at less than $1 million on ADB’s website is not required but is highly recommended.

Attachment 1 7

C. Procurement Procedures

f. Use of Harmonized Documents

15. The harmonized standard bidding documents entitled “Procurement of Works, NCB-SBD, Harmonized Bidding Documents, December 2015” and “Procurement of Goods, NCB-SBD, Harmonized Bidding Documents, December 2015” approved by the Ministry of Finance through 3246/MOF dated 28 September 2015, and approved by ADB by OSFMD/OSP2 dated 7 June 2016, shall be used for all procurement by NCB unless exceptions are specifically identified in the Procurement Plan.

g. Rejection of all Bids and Rebidding

16. Bids shall not be rejected and new bids solicited without ADB’s prior concurrence.

h. Disclosure of Decisions on Contract Awards

17. At the same time that notification on award of contract is given to the successful bidder, the results of the bid evaluation shall be published in a local newspaper or well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each Bidder who submitted a Bid, (ii) bid prices as read out at bid opening, (iii) name of bidders whose bids were rejected and the reasons for their rejection, (iv) name of the winning Bidder, and the price it offered, as well as the duration and summary scope of the contract awarded. The executing agency/implementing agency shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected.

i. ADB Policy Clauses

18. A provision shall be included in all NCB works and goods contracts financed by ADB requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB. 19. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for the contract in question.

20. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices or any integrity violation in competing for, or in executing, ADB-financed contract.

Attachment 2

DETAILED TERMS OF REFERENCE OF PROJECT IMPLEMENTATION CONSULTANT

1. Background. The Fourth Greater Mekong Subregion Corridor Towns Development Project (GMS CTDP4) will support the government of the Lao PDR in improving urban environmental services and enhance regional economic connectivity in the towns of Paksan and Thakhek, two towns located along the North-South Economic Corridor in the Greater Mekong Subregion (GMS). It will finance: (i) sewage networks and eight small-scale18 wastewater treatment facilities to improve sanitation; (ii) two controlled landfills and solid waste collection vehicles for municipal waste to improve waste collection and management, (iii) improved drainage and riverbank protection, (iv) rehabilitation of the old-town center to promote regional tourism in Thakhek, and; (v) city master plans to promote regional economic connectivity. The project will accelerate urban node development along the GMS North-South Economic Corridor in Lao PDR. 2. Impacts and Outcome. The impact will be aligned with the Eighth Five-Year National Socioeconomic Development Plan, 2016–2020 targeting balanced regional and local development. The project will have the following outcome: Urban services for enhancing regional economic connectivity in participating towns improved. The outcome of the project is that urban services in participating towns improved.

3. Output 1: Urban environmental infrastructure improved. The project will finance two wastewater subprojects: (i) four SWTPs with a combined capacity of 900 cubic meters (m3))/day for wastewater treatment, and 20 kilometer (km) of new sewers in Paksan; and (ii) four SWTPs with a combined capacity of 800 m3/day for wastewater treatment, and 20 km of new sewers in in Thakhek. The project will finance two drainage sub-projects: (i) a 23 km drainage network in Paksan; and (ii) a 9 km drainage network in Thakhek.19 The project will finance two controlled landfills: (i) 220,000 m3 landfill in Paksan; and (iii) 300,000 m3 landfill in Thakhek.20 The project will finance two riverbank protection subprojects: (i) 1,830 meters (m) of embankment in Paksan; and (ii) 4,230 m of embankment in Thakhek. The project will also finance the renovation of central town square and convert the old post office building to a tourist center in Thakhek. The design of SWTP, access roads and drainage network will factor disaster and climate risk considerations.

4. Output 2: Institutional effectiveness improved. This output will be delivered through four components: (i) training of 25 government staff (including 10 women) on urban service delivery, O&M of urban facilities, and service agreements and other institutional arrangements; (ii) increasing women’s representation in decision making and technical positions at 35% in the project coordination unit (PCU) and 30% in the project implementation units (PIUs) in Paksan and Thakhek; (iii) preparing urban development strategies and master plans with climate resilience and gender responsive measures for Paksan and Thakhek; and (iv) financial sustainability plans for participating UDAAs and DPWTs, including budgeting, tariff setting and operational effectiveness.

5. The main objective of the Project Management Consultant is to ensure the effective implementation, timely completion and sustainability of the impacts of the Fourth Greater Mekong

18 Average capacity of the eight wastewater treatment facilities, which range in size from 200 m3/day to one 1,000 m3/day, is 400m3/day. 19 The service area covers the core town areas in each city, covering between 20 and 30% of each city’s population. 20 The service area for solid waste covers between 70% and 85% of each city’s population.

2 Attachment 2

Subregion Corridor Towns Development Project (GMS CTDP4) in Lao PDR and to plan future infrastructure development in the Project towns.

6. These objectives will be achieved through: (i) support to project management; (ii) preparation of detailed engineering designs and bidding documents; (iii) construction supervision and contract administration; (iv) ensuring compliance with ADB Safeguards Policy Statement and mitigation of risks (v) ensuring compliance with ADB Gender and Development Policy and Guidelines for Gender Mainstreaming Categories of ADB projects. (vi) preparation of urban development master plans; (vii) strengthening the institutions that will deliver the services; (viii) coordination and provision of training and (ix) information, education and communications activities. 7. This assignment will build on work already done under the Project Preparatory Technical Assistance (PPTA) financed by the Asian Development Bank (ADB), which has finalized feasibility-level reports covering the full scope of the project, and completed economic, financial, governance, poverty and social, gender, climate and safeguards assessments. All deliverables of the PPTA consultancy will be made available to shortlisted firms.

8. An international consulting firm will be engaged to achieve the aforementioned objectives in accordance with ADB Guidelines on the Use of Consultants (2013, as amended from time to time), using quality- and cost-based selection method with a quality-cost ratio of 90:10, through a full technical proposal. The consulting services assignment will cover a period of 5 calendar years. All international consultants should have experience in developing countries. Experience in the Southeast Asia region, preferably Lao PDR, is preferred. All national consultants should be fluent in English as well as the national language. One consultant can cover more than one field of expertise, provided they satisfy all appropriate requirements for each position.

9. It is envisaged that the firm will provide the full scope of services mentioned in Section E. As part of the contract negotiations, a payment modality will be agreed that will distinguish between output-based and time-based activities. The payment for activities with no or low dependency on the counterpart will be output-based while the payment for activities with medium or high dependency will be time-based. The deliverables listed in Table 5 are classified accordingly. A. Scope of Consulting Services 10. Project Management: The Consultant will assist the Project Coordination Unit (PCU) and Project Implementation Units (PIUs) in implementing the project in accordance with the provisions of the Project Administration Manual and financing agreements, and with ADB’s procedures and policy requirements. This encompasses the provision of the following services:

a. Project management and coordination, technical review, administration and results monitoring

(i) Assist the PCU in coordinating all project activities by taking an advisory role and

direct action/intervention as needed; (ii) Assist the PCU to liaise with the ADB and with preparation of project-related

information material from time to time as requested;

Attachment 2 3

(iii) Coordinate and participate in the preparation of all project progress reports including brief monthly management reports to the PCU and quarterly progress reports and GAP implementation monitoring reports to the ADB and government;

(iv) Support PCU and PIUs in liaising with all relevant line-ministries, provincial departments and sector stakeholders;

(v) Set up the project performance management system (PPMS) based on the design monitoring framework (DMS), gender action plan (GAP) and other relevant grant documents in accordance with ADB’s policy requirements, including establishing baseline and operation mechanism for data collection (sex disaggregated), analysis, and reporting;

(vi) Set up the project management information system (MIS) to: (a) ensure efficient and effective information sharing and coordination on project management (e.g., procurement, disbursement, construction, safeguard compliance, gender action plan compliance); and (b) monitor the project’s design and monitoring framework through the use of the PPMS;

(vii) Collect and compile all necessary information and prepare all necessary documents for ADB’s grant administration missions.

(viii) provide expert inputs, review and provide justification for contract variations, and prepare necessary documents (e.g., a due diligence report) in accordance with government and ADB requirements;

(ix) ensure procurement related record keeping, establishing and managing complaint handling mechanisms, and transferring knowledge through, but not limited to, on-the job training of PCU/PIUs staffs; and

(x) conduct contract management during project implementation, to include monitoring of construction progress, preparing quarterly and annual progress reports, reviewing and certifying contractors’ claims for payments, coordinating project implementation among contractors and various stakeholders, and coordinating daily operational tasks.

b. Financial management

(i) Establish an efficient and effective financial management system (e.g. fund disbursement management, withdrawal application review, use of grant proceeds and counterpart funds) in accordance with ADB policy requirements and procedures;

(ii) Assist PCU and PIUs in preparing annual budgeting and financial statements and reporting according to relevant project financial covenants and make necessary arrangements with auditing units to supervise the financial management of PCU and PIUs.

(iii) Provide training on public financial management especially strengthen the identified weaknesses under the financial management assessment (FMA).

11. Detailed engineering designs (DED) and bidding documents: The Consultant will prepare the detailed engineering designs, cost estimates, and bidding documents (including bills of quantities, technical specifications and evaluation criteria) for the following sub-projects:

• In Paksan: (i) solid waste treatment; (ii) wastewater management (iii) drainage improvements; and (iv) riverbank protection.

4 Attachment 2

• In Thakhek: (i) solid waste treatment; (ii) wastewater management (iii) drainage improvements; (iv) riverbank protection; and (v) Thakhek Old Town upgrading.

12. As part of the preparation of the DEDs, the Consultant will continue to explore options for enhancing climate resilience and incorporating green infrastructure and bio-engineering elements.21 13. The Consultant will carry out the necessary field investigations and surveys including detailed topographical surveys geotechnical investigations (including depths to groundwater table), field verification of the location of existing services plus any other necessary studies – needed to prepare the aforementioned documents. 14. All design and procurement documents prepared by the consultant will be in accordance with national and international norms and procedures as required. Tender and contract documents shall be prepared in accordance with the ADB Procurement Guidelines (2015 as amended from time to time), ADB Standard Bidding Documents for Procurement of Works (incorporating FIDIC Pink Book provisions), or Procurement of Goods, and government procurement rules and regulations (where not inconsistent with the previous documents).. 15. The Consultant will assist the PCU and bid evaluation committees during the tendering process as requested, including with bids evaluation, preparation of bids evaluation documentation, contract negotiations, and contract award. 16. Construction supervision and contract administration: for all the above-mentioned sub-projects as well as for other investment components funded under the Project22, the Consultant will, on behalf of PCU and PIUs, supervise the construction of the works and installation of equipment, and ensure the works are: (a) fully compliant with the national regulations, guidelines and engineering standards as well as with the DEDs, (b) progressing along with the agreed schedule; and (c) at the level of quality stipulated and agreed upon in the contract. This encompasses the performance of the following tasks:

(i) coordination of the works performed by the various contractors and stakeholders; (ii) onsite supervision; (iii) monitoring of the progress and preparation of construction progress reports; (iv) routine site inspection and overseeing of the quality construction and compliance

with the contract, and provision of technical inputs on construction planning and quality control;

(v) assistance to the PCU and PIUs in contract management, and in particular in (a) the certification of the contractors’ claims for progress payments; (b) prepare projections of work progress and budget requirements, (c) the review of any contract variations, and the preparation of the subsequent documents in accordance with government and ADB requirements, (d) facilitate with obtaining necessary permits (such as road opening, etc.) if requested by the contractor

(vi) supervision of works commissioning and handover; (vii) establishment of effective reporting/communication channels between PCU, PIUs,

and the contractors to issues can be detected and resolved at an early stage.

21 See: ADB. 2015. Nature-Based Solutions for Building Resilience in Towns and Cities: Case Studies from the Greater Mekong Subregion. Manila. 22 Investment components include landfill components, onsite household connection to the sewerage system; and environmental impact mitigation measures

Attachment 2 5

17. Ensuring compliance with ADB SPS risk mitigation and ADB Gender and Development (GAD) Policy requirements: The Consultant will support the PCU and PIUs in ensuring compliance of the Project with ADB SPS (2009) and ADB GAD (1998) and will contribute to the enforcement of ADB social development and gender requirements as per Guidelines for Gender Mainstreaming Categories for ADB projects. The Consultant will in particular:

a. Support for compliance with ADB safeguard policies and social and gender requirements

(ii) review and update as needed the initial environmental examination (IEE) report, environmental management plans (EMPs), GAP, resettlement and resettlement plans based on DED;

(iii) ensure proper coordination with the safeguards specialists that have been directly hired by PCU for project;

(iv) ensure that safeguards measures are adequately considered in the bidding documents and in the evaluation criteria for selection and awarding of contracts for civil works, goods and services;

(v) in coordination with the social development and gender expert, ensure that social risks mitigation measures are adequately considered in the bidding documents and in the evaluation criteria for selection and awarding of contracts for civil works, goods and services;

(vi) ensure that EMPs and related environmental considerations are factored in detailed designs and construction drawings of the sub-projects (particularly with regard to effluent management for the small-scale wastewater treatment plants, which must comply with national standards);

(vii) advise works contractors on site-specific construction EMP requirements (in accordance with the IEE/EMP and environment safeguards requirements), review and clear EMPs of works contractors before start of construction;

(viii) assist in establishing and managing the grievance redress mechanism (GRM), including assistance to PCU and PIUs to establish a project public complaint unit, and to provide training for and grievance redress mechanism focal points;

(ix) assist PCU and PIUs and other relevant agencies in local safeguards documentation disclosure, including IEE/EMP, RPs and semi-annual monitoring reports;

(x) develop capacity of staff(s) in-charge of safeguards, social development and gender aspects in the PCU and PIUs on gender mainstreaming, safeguards, GRM and GAP implementation, monitoring and reporting.

(xi) advise works contractors on gender responsive construction requirements (in accordance with GAP requirements);

(xii) assist PCU and PIUs to implement, coordinate and establish management supervision mechanisms for implementation, monitoring and reporting of the project safeguards and social-gender issues based on the relevant ADB documentation (e.g., EMP, GAP, and RP) and provide support for their implementation;

(xiii) conduct compliance monitoring of social, gender and safeguards issues, assist PCU and PIUs to formulate corrective actions where necessary, and help PCU and PIUs to prepare safeguards, social development and gender section in the periodic progress report and relevant semiannual monitoring reports;

6 Attachment 2

(xiv) assist PCU and PIUs and other relevant agencies to develop reporting formats and establish mechanisms to prepare and submit the safeguards and gender monitoring reports as specified in the grant and project agreements;

(xv) provide technical inputs and support implementation of GAP through alignment and integration with overall project work plan; design of training materials; providing training, workshops, and orientation briefings to PCUs and relevant stakeholders;

(xvi) assist PCU and PIUs to ensure implementation of GAP requirements by conducting necessary workshops and focus group discussions; and

(xvii) assist PCU and PIUs and other relevant agencies to develop sex-disaggregated monitoring indicators in PPMS and assist PCU and PIUs and other relevant agencies to develop reporting formats and establish mechanisms to prepare reports as specified in the grant and project agreements;

(xviii) ensure the project’s poverty reduction, social inclusion and gender mainstreaming measures are resourced and implemented as per the summary poverty reduction and social strategy, GAP, and SCS, including integration in project’s workplan, budget, and timely fielding of relevant experts.

(xix) conduct safeguards due diligence assessments, and assist in consultations with project-affected people for drafting safeguard documents;

(xx) coordinate with participating ministries, and local authorities on regulatory and compliance issues related to safeguards and obtain all necessary approvals prior to awarding civil works contracts;

b. Support for compliance with ADB safeguard policies and social and gender

requirements

(i) ensure that EMPs and related environmental considerations are factored in detailed designs and construction drawings of the sub-projects (particularly with regard to effluent management for the small-scale wastewater treatment plants, which must comply with national standards);

(ii) ensure the project’s poverty reduction, social inclusion and gender mainstreaming measures are resourced and implemented as per the summary poverty reduction and social strategy, GAP, and SCS, including integration in project’s workplan, budget, and timely fielding of relevant experts.

(iii) advise works contractors on gender responsive construction requirements (in accordance with GAP requirements);

(iv) conduct safeguards due diligence assessments, and assist in consultations with project-affected people for drafting safeguard documents;

(v) coordinate with participating ministries, and local authorities on regulatory and compliance issues related to safeguards;

(vi) advise the MPWT, PCU and PIUs on environment and social safeguards related concerns that may arise during Project implementation and recommend appropriate action plan;

(vii) assess any inadequacy in poverty reduction, social inclusion, and gender provisions; and advise the PCU and PIUs on social development and gender mainstreaming related concerns that may arise and recommend appropriate remedial actions to strengthen provisions as required;

(viii) conduct poverty reduction, social inclusion, and gender mainstreaming compliance monitoring in accordance to the implementation monitoring plans defined in the GAP and SCS and assist in preparation of the GAP implementation

Attachment 2 7

monitoring report using ADB template as specified in the grant and project agreements;

(ix) conduct environmental effect monitoring in accordance to the monitoring plan defined in the EMP;

(x) conduct compliance monitoring of safeguards issues, and assist in the preparation of safeguards monitoring reports as specified in the grant and project agreements;

(xi) conduct environmental effect monitoring or engage local environmental monitoring center/agency who has a capacity to monitor quality of environment in accordance with the EMP and manage the contract in accordance with the national and ADB requirements;

18. Institutional Strengthening: Based on the results of the PPTA for the subject project, the Consultant will assist the national and local administrations and governments in implementing all the necessary institutional arrangements to ensure the sustainable provision of solid waste, wastewater and drainage management services in the project towns. This will include convening discussions with consultants and municipalities implementing other ADB projects in the sector, to ensure that lessons are properly reflected. This encompasses the provision of the following services: 19. Selection of institutional arrangements. The Consultant will assist the municipalities in close coordination with the relevant line-ministries and their respective provincial departments in reviewing and refining in further detail the organization of the provision of solid waste and wastewater management services in the project towns. This includes:

(i) The review, update and detailing the organizational schemes elaborated under the PPTA;

(ii) Highlighting the pros and cons of each scheme and assisting the project stakeholders in selecting the preferred set-up;

(iii) The preparation of a detailed implementation plan for the chosen scheme (iv) Conducting workshops (one in each town) to present the proposed/agreed

organizational arrangements. 20. The Consultant will then formulate recommendations to strengthen these entities and assist the local stakeholders in implementing them.

a. Renegotiating and/or setting-up service contracts for solid waste management

(ii) Develop performance indicators on the service quality, in particular for solid waste collection;

(iii) Define data collection procedures and analysis methods to monitor these indicators, and support local authorities in performance monitoring;

(iv) Define a procedure to get direct feedback from the end-users on the service quality (such as citizen report cards, periodic customer attitude and satisfaction surveys);

(v) Identify and define penalties and incentives to enforce or foster service quality and performance;

(vi) Assist in renegotiating existing contracts, in particular to include performance indicators, incentives and penalties;

8 Attachment 2

(vii) For new contracts, develop bidding documents and evaluation criteria, and assist the local stakeholders throughout tendering, proposal evaluation and contract negotiation.

b. Formulation and finalization of financial sustainability roadmap for urban utility services (tariffs and billing mechanisms)

(i) Consultation with MPWT/PCU, DPWTs/PIUs and provincial governments, conduct comprehensive assessment on tariff schemes and collection mechanisms for water supply, wastewater (sanitation), drainage, solid waste and other urban services (landscaping, street lights, pedestrian walkaways and urban roads), including their cross-subsidization schemes;

(ii) Formulate short-, medium- and long-term financial sustainability roadmap for urban services in three towns and corresponding financial mechanisms to ensure sustainability of the solid waste management and wastewater management services, taking into account the affordability and willingness-to-pay of the end users;

(iii) Develop tariff tables to ensure sustainability of the solid waste management and wastewater management services, taking into account the affordability and willingness-to-pay of the end users;

(iv) Assist in negotiations with the organizations in charge of water and/or power supply for including solid waste and wastewater tariffs in these bills;

(v) Identify and define the corresponding financing mechanisms (transfer of funds, potential subsidies, etc.).; and

(vi) Assist the borrower and MPWT to fulfill the grant covenants on financial sustainability.

21. Preparation of Urban Development Master Plans: prepare an urban development strategy and an urban development master plan (UDMP) for each of the project cities, considering planned development in the cities until 2040. The strategy and master plans must consider the strategic locations of the project cities, optimize their economic resource potentials and improve the capacity of local authorities to achieve sustainable economic growth. In preparing these documents, the Consultant will undertake a thorough review of existing development plans, ongoing and planned projects and programs, and consultative meetings with stakeholders.23 Key activities are the following:

(i) Review of the existing development plans and programs;

(ii) Conduct of consultative review and assessment of national policies and strategic framework on the urban sector development and priority investment for urban infrastructure development, in the context of the economic transformation of Paksan and Thakhek;

(iii) Assessment and analysis of a comprehensive range of development options involving the core areas of the urban sector;

(iv) Conduct of series consultative meetings and focus group discussions on the planned development and strategic options and generate perceptions of key stakeholders from the government agencies, private sector and local development institutions;

23 The consultant can consider the green city action planning approach outlined in: ADB. 2016. Green Solutions for Livable Cities. Manila.

Attachment 2 9

(v) Prepare the urban development strategies based on each of the project town’s development vision, demand and supply gap for urban infrastructure, the potential economic drivers for the succeeding years, and including gender responsive and climate resilient dimensions;

(vi) Formulate the medium and long-term investment program to address the demand and supply gap taking into consideration expected increase in urban population and the expansion of the urban areas;

(vii) Prepare planned development maps to indicate population movements, water flows, future expansion of commercial and industrial centers and potential locations of key urban facilities. This would include the preparation of a drainage master plan;

(viii) Organize consultative workshop and present the draft Master Plan, taking into account gender responsive and climate resilient measures, to the representatives of the EA, IAs, ADB and project stakeholders for review and discussions. Incorporate the comments and suggestions made during the workshop in the final deliverables.

22. Training: The Consultant will oversee and coordinate all training activities undertaken under the Project, and will be directly responsible for the development and implementation of all activities but the ones on gender sensitization (under the responsibility of the social development and gender expert). The training will be directed at the EA, PCU, PIUs, municipalities, other national and local administrations, contractors and site workers, operators including, for landfills only, waste pickers. This encompasses the provision of the following tasks:

a. Development and implementation of a training plan

(i) Conduct a training needs assessment and finalize a training plan in coordination with the social development and gender expert, ensuring female target recipients;

(ii) Coordinate and oversee the provision of all training activities. b. Provision of training courses to support the activities under the Project, including:

(i) Train the municipalities and staff of the urban service units on PPP contracts (forms of contracts, performance indicators, contract administration, performance monitoring, etc.);

(ii) Train utilities’ staff on commercial and business management (customers’ relationship, billing, accounting, etc.);

(iii) Train the project stakeholders, and in particular provincial Department of Environment (PDoE) on the enforcement of Environmental Protection regulations (such as the application of penalties for dumping waste in illegal sites);

(iv) Train PCU and PIUs on project financial management and performance monitoring tools;

(v) Develop an operation and maintenance manual for each landfill and wastewater plant and collection system, and a training program on the operations manual provisions;

(vi) Train operators on plant equipment at the wastewater treatment plant and landfill sites;

(vii) Train operators on achievement of, and compliance with, regulatory standards and monitoring of the performance of the facilities;

10 Attachment 2

(viii) Train landfill operators on controlled landfill recycling and disposal operations if implemented;

(ix) Train PIUs, contractors, municipalities, and other relevant stakeholders on the implementation of EMPs and resettlement plans, safeguards monitoring, and access and use of the grievance redress mechanism.

(x) Train provincial government officials, DPWTs and/or entities established for O&M urban infrastructure services on public financial management especially strengthen the identified weaknesses under the FMA (e.g. public asset management).

23. Information, education and communication activities: The Consultant can conduct necessary IEC activities by themselves or subcontract a non-government organization (NGO) to implement, in line with the environmental management plan (EMP), gender action plan (GAP), urban development master plan, and financial sustainability roadmap (e.g. school environmental education, community awareness rising activities for wastewater and solid waste services and tariffs payment). The services to be provided include: public awareness activities and consultation meetings for: (i) GAP, (ii) EMP, (iii) resettlement plans, (iv) PDS, (v) UMDP, and (vi) Financial Sustainability Road Map. B. Expertise Required 24. The consulting firm will be recruited using the quality- and cost-based selection (QCBS) method with a standard quality-cost ratio of 90:10, using full technical proposal.

25. The consulting firm will include an estimated 350 person-months of experts’ inputs (86 international and 264 national). The anticipated consulting services requirements are summarized in Table 1. 26. Key experts. Proposing firms have some flexibility to determine the number and the nature of the experts they will require to achieve the objectives of the contract, in accordance with their proposed approach and methodology and to ensure the output deliverables are prepared to an agreeable standard. However, ADB requires minimum expertise in key areas, with a minimum of 75 international and 241 national person-months as listed in Table 1.24 CVs of these key experts must be submitted. One consultant can cover more than one area of expertise.25

Table 1: Indicative Person-months Requirement Positions Required Person-months Requirement

International Key Experts

Team Leader (Project Manager)* 25

Deputy Team Leader (Civil Engineer)* 8

Wastewater / Civil Engineer* 8

Solid Waste Management Engineer 8

Environmental Safeguards Specialist 5

Social Safeguards Specialist 2

Finance and Institutional Specialist* 4

Procurement Specialist 4

Solid Waste Utility Specialist 2

24 Consulting firms are free to propose additional person months for key experts, as required, in line with the proposed work plan and schedule. 25 In case one consultant is proposed to cover more than one area, this should be clearly indicated in the work plan and methodology, and separate CVs should be submitted for each position, highlighting the expertise required by each position.

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Positions Required Person-months Requirement

Urban Development Specialist 4

Development Economist 3

Social Development and Gender Specialist 2

National Key Experts

National Deputy Team Leader/ Civil Engineer 30

Solid Waste Engineer 12

Sanitation Engineer 2

Electromechanical Engineer 6

Structural Engineer 8

Environment Safeguards Specialist 14

Social Safeguards Specialist 6

Institutional and Municipal Finance Specialist 15

Human Resource / Training Coordinator 6

Urban Planner 10

Financial Management Specialist 4

Site Engineers 50

Site Supervisors 60

AutoCAD Operators 18

Total International Key Person-months Inputs 75

Total National Key Person-months Inputs 241

Total of Key Person Month Inputs 316

Non-Key International Person-months Inputs 11

Non-Key National Person-months Inputs 23

Total of Non-Key Person-months Inputs 34

Grand Total of Key and Non-Key Person Months Inputs 350

27. The qualification requirements for the key experts is listed below. Four key international positions, namely the Team Leader (Project Manager), Deputy Team leader (Civil Engineer), Wastewater/Civil Engineer and the Finance and Institutional Specialist, must be full-time staff of the international firm.

Table 2: Team Composition and Qualification Requirements for Key Experts

Position & Task Minimum Qualifications Minimum Work Experience

International Consultants

Team Leader (Project Manager)

Master’s degree urban development, economics, public administration or equivalent

15 years of working experience in institutional development and capacity building of public utilities, preferably involved in urban sanitation service delivery (solid waste and wastewater). Familiarity with wastewater and solid waste utilities in developing countries is essential.

Previous experience as team leader of project management assignments for urban environmental infrastructure financed by ADB or other multilateral development agencies.

He/she should have demonstrated ability to work with a wide range of stakeholders including government and financial and community, and must have experience in project management of multi-disciplinary teams. Excellent communication and writing skills in English are required, and an ability to converse in Khmer could be an advantage.

* The proposed expert must be a full-time staff of the international firm.

12 Attachment 2


Deputy Team Leader (Civil Engineer)

Master’s degree in civil/municipal engineering or a related discipline.

At least 10 years relevant international experience in design and construction of wastewater, drainage or solid waste management projects, and at least 5 years’ experience as team leader on international development agency financed projects. The team leader should have worked in Lao PDR or at least in South East Asia. He/she should have demonstrated ability to manage multi-disciplinary teams. Strong communication and writing skills in English are preferred, and an ability to converse in Khmer could be an advantage.


Wastewater / Civil Engineer


10 years’ experience in both detailed engineering design and construction supervision of urban wastewater and sanitation systems. Previous experience working on urban wastewater and sanitation projects financed by multilateral development agencies in Southeast Asia is preferred.


Solid Waste Management Engineer


10 years’ experience in both detailed engineering design and construction supervision of landfills.

Environmental Safeguards Specialist

Master’s Degree in environmental science, engineering, planning or equivalent

10 years’ experience in preparing or monitoring the implementation of environmental safeguards of donor-funded projects. Experience in Southeast Asia of urban water supply, sanitation, or related projects financed by multilateral development agencies is preferred.

Social Safeguards Specialist

Master’s degree in relevant social sciences discipline

10 years’ experience in social development, land acquisition, and resettlement preferably within urban and peri-urban communities. Experience in Southeast Asia on urban water supply and sanitation projects financed by multilateral development agencies is preferred.

Finance and Institutional Specialist

Master’s degree in finance, accounting, economics, business management, administration or a related discipline.

10 years’ working experience in financing and

institutional improvement and reform of urban sanitation (wastewater and solid waste management) institutions or utilities. Specific experience in business modelling, tariff-setting and designing cost recovery systems and billing mechanisms. Fluency in written and spoken English is required.


Procurement Specialist

Master’s degree in Civil Engineering, Law, Contracts / procurement, or related discipline

10 years’ experience in procurement for major civil works, of which 5 years’ on ADB or multilateral development agencies funded projects. Previous experience in Lao PDR is an advantage.

Attachment 2 13


Solid Waste Utility Specialist

At least a bachelor’s degree in civil, mechanical or environmental engineering

10 years of working experience as a site manager or engineer of a waste management company operating controlled landfills or similar, directly responsible for overall site operations with a similar input of materials (up to 100 tons per day of waste). Specialists who can demonstrate their practical knowledge and experiences in directly supervising similar operations on-site for protracted periods and with a similar equipment fleet will also be eligible. The specialist must have proven experience in both hands-on operations and maintenance and managing staff dispatching and deployment in a similar environment, and in guiding and training of unskilled workers. Experience in establishing logistics onsite and working in Laos PDR or South East Asia would be desirable.

Urban Development Specialist

Master’s in urban planning, At least 10 years of experience in urban Development Economics planning, sector development and urban or related subject. infrastructure Implementation. Specific . experience in developing master plans for cities.

Development Economist

Masters in At least 10 years of experience in implementing Development Economics. and monitoring social development and gender Business or related field. mainstreaming of donor funded projects. The specialist should have experience leading training sessions on poverty and gender issues to build capacity of government partners; and responsibility for providing overall technical leadership guidance. experience in Southeast Asia on urban water supply and sanitation projects financed by MDBs an advantage.

Social Development and Gender Specialist

Master’s degree in social At least 10 years of experience in social sciences, development development work, gender action planning sociology or a related and social safeguards measures. Development discipline.

National Consultants

National Deputy Team Leader/ Civil Engineer

Master’s degree in civil or municipal engineering or a related discipline

15 years’ experience in detailed design and construction supervision of sanitation and related projects. Previous work experience on projects with multilateral development agencies, with 3 years’ experience as a deputy team leader on such projects. Fluency in written and spoken English is required. Experience working on projects financed by multilateral development agencies and/or water utilities is preferred.

Solid Waste Engineer

Master’s degree in civil engineering or a related discipline specializing in environment.

10 years’ experience in the detailed engineering design and construction supervision of landfills. Fluency in written and spoken English is required. Must have a demonstrated ability to work within a multi-disciplinary consulting team with counterparts and other project stakeholders. Experience working on projects financed by multilateral development agencies is preferred.

14 Attachment 2


Sanitation Engineer Master’s degree in civil engineering or a related discipline specializing in wastewater and sanitation.

10 years’ experience in the detailed engineering design of urban wastewater and sanitation systems. Fluency in written and spoken English is required. Must have a demonstrated ability to work within a multi-disciplinary consulting team with counterparts and other project stakeholders. Experience working on projects financed by multilateral development agencies is preferred.

Electromechanical Engineer

Degree in electrical engineering or a related discipline specializing in water supply.

10 years’ experience in the detailed engineering design of projects, with preferably 5 years’ experience in urban wastewater systems. Fluency in written and spoken English is required. Must have a demonstrated ability to work within a multi-disciplinary consulting team with counterparts and others project stakeholders. Experience working on projects financed by multilateral development agencies is preferred.

Structural Engineer Master’s degree in civil or structural engineering or a related discipline.

10 years’ experience in the detailed engineering design of civil engineering structures, with preferably 5 years’ experience in urban sanitation projects. Fluency in written and spoken English is required. Must have a demonstrated ability to work within a multi-disciplinary consulting team with counterparts and others project stakeholders.

Environmental Safeguards Specialist

Master’s degree in environmental science, engineering, planning or a related discipline

8 years of experience in environmental management, safeguards. or environmental impact assessments. Experience on urban sanitation or related assignments financed by multilateral development agencies (preferably ADB) would be beneficial, as is experience on climate change related studies. Fluency in written and spoken English is required and must be on MOE’s approved list of consultants for environmental assessments.

Social Safeguards Specialist

Master’s degree in social sciences, development sociology or a related discipline.

8 years’ experience of working with social safeguards in development projects. Experience on urban sanitation or related assignments financed by multilateral development agencies (preferably ADB) would be beneficial. Fluency in written and spoken English is required.

Institutional and Municipal Finance Specialist

Master’s in Development Studies, Economics, Finance, Administration or related discipline.

10 years’ working experience in financing and

institutional improvement and reform of urban sanitation (wastewater and solid waste management) institutions or utilities. Specific experience in business modelling, tariff-setting and designing cost recovery systems and billing mechanisms. Fluency in written and spoken English is required.

Human Resource / Training Coordinator

Master’s degree in human resource management, governance or another related institutional development discipline or an equivalent professional qualification.

5 years or more of working experience in consultancy assignments and/or at senior level. Experience on urban sanitation or related assignments financed by multilateral development agencies related to human resources and training assignments would be beneficial. Fluency in written and spoken English is required.

Urban Planner Master’s in urban planning, Development Economics or related subject.

At least 10 years of work experience in urban sector development and urban infrastructure implementation. A good command of written English is required.

Attachment 2 15


Financial Management Specialist

University degree in Finance or Accountancy or an equivalent academic qualification.

At least 6 years of experience of financial management and fund disbursements for urban infrastructure investments. A good command of written English is required.

Site Engineers (2 positions)

A degree in civil, structural or municipal engineering or a related discipline.

8 years of experience in construction supervision of urban infrastructure development projects (preferably landfill and wastewater management systems) would be beneficial. Fluency in written and spoken English is required.

Site Supervisors Degree or diploma in a construction-related field (construction and project management, civil engineering)

5 years of experience in in construction supervision of urban infrastructure development projects (preferably landfill and wastewater management systems). A good command of written English is required.

AutoCAD Operators Degree or diploma in computer aided technical design.

5 years of experience in the preparation of computer aided detailed engineering designs using AutoCAD software for urban infrastructure. Familiarity with the design of wastewater or solid waste management facilities would be beneficial. A good command of written English is required.

C. Non-Key Expertise 28. In addition to the mandatory key experts, shortlisted firms will be expected to provide non-key experts (budgeted at 11 international person-months and 30 national person-months for GMS CTDP4) to ensure all aspects of the work can be undertaken and all deliverables and reports prepared. 29. The person-months for non-key experts indicated above is included for budgeting purposes. The consulting firm is free to propose the nature and number of non-key experts, and person months for each non-key expert, as required, in line with the proposed work plan and schedule. 30. Non-key experts include any additional expertise in areas that are relevant to this assignment, including specialized technical expertise related to the civil works or to any other aspects of the terms of reference, as deemed appropriate by the proposing firm.

31. Examples of non-key experts include, but are not limited to, experts in the following areas: private-public partnerships, municipal finance, utility management, contracts, legal, economics, specific engineering expertise (e.g. civil, structural, electrical, geospatial etc.), quantity surveying, and project performance monitoring. 32. Except for administrative staff, the firm’s Team Composition and Personnel Schedule shall reflect the names and inputs of the proposed non-key experts. CVs of those non-key experts must be submitted. The CVs of non-key experts will not be scored but will be evaluated on a pass/fail basis, based on the merits of the CV against the proposed position/task assignment for each expert. The credentials of non-key experts as well as the design of the team as a whole (including the appropriateness of the level of inputs i.e. Home, Field, Total) will be taken into account in the evaluation of Quality of Methodology, Work Program and Personnel Schedule criteria.

16 Attachment 2

D. Reporting Requirements and Deliverables 33. The Consultant’s contract will be partly timed-based and partly output-based. The Consultant shall submit to ADB and the PCU the following deliverables:

Table 5: Reporting Requirements [Finalize submission dates during RFP stage]

Deliverable(s) Expected Submission Date

Inception report (output-based)

Monthly Management and Progress Reports (time-based)

Quarterly Progress Reports – highlighting key points per quarter. Attachments to the Quarterly Progress Reports (if available for the quarter being reported) are:

• surveys/investigations reports

• report on the SWM service contracts

• report on the set-up of WWM management plans (specifying the organization, business plan and staffing)

• institutional arrangements report (refining the institutional options and including a detailed implementation plan of the chosen option in each city)

• training plan and training reports

• GAP implementation monitoring report (using ADB template) (time-based)

Detailed designs and detailed design report for the following:

• Paksan Solid Waste Treatment civil works

• Thakhek Solid Waste Treatment civil works

• Paksan Solid Waste Treatment equipment

• Thakhek Solid Waste Treatment equipment

• Paksan drainage

• Thakhek drainage

• Paksan wastewater

• Thakhek wastewater

• Paksan mbankment

• Thakhek embankment

• Thakhek urban renewal (output-based)

*Bidding document for the following:





• Paksan drainage






• Thakhek urban renewal (output-based) (output-based)

*Bid evaluation report for the following:





• Paksan drainage



Attachment 2 17

Deliverable(s) Expected Submission Date




• Thakhek urban renewal (output-based) (output-based)

Periodic semi-annual environment and social safeguards reports (time-based)

Thakhek demonstration landfill operations report (output-based)

Reports on Information Education Communication activities including communication plan and sanitation strategy**

Urban Development Strategy and Master Plan for Paksan (including the medium and long-term investment programs) (output-based)

Urban Development Strategy and Master Plan for Thakhek (including the medium and long-term investment programs) (output-based)

Draft Final Report – to include the Operation and Maintenance manuals (output-based)

Final Report (output-based)

*Bid packaging for Solid Waste Treatment (i.e. separate bidding documents for 3 packages or one bidding document with 3 lots) to be confirmed based on land availability. **Subcontractor’s output; under out-of-pocket expenses Note: Consultant may be required to provide other reports and deliverables required by the EA and ADB, in line with the terms of reference.

E. Client’s Input and Counterpart Personnel

(i) Office space and office furniture such as: Desks, meeting tables, chairs, filling cabinets, etc will be provided by the Ministry of Public Works and Transport and its provincial departments in the project towns

(ii) Counterpart staff at the PCU and PIUs to assist with procurement and financial management (at the PCU) and project coordination (at the PCU and PIUs)

(iii) Access to project related documents and reports (iv) Access to project vehicles for official project business

Attachment 3

FINANCIAL MANAGEMENT ASSESSMENT

A. EXECUTIVE SUMMARY

1. Overall assessment of project financial management risk is high. The risks identified include: (i) un-insured fixed assets (except for vehicles), and weak asset monitoring and inventory arrangement which could lead to loss of assets; (ii) weak actual revenue and expenditure recording system which may result to lack of accountability; (iii) levels of tariff are not linked to operation and management (O&M) requirement and can result in poor maintenance of assets; and (iv) lack of knowledge/ training in ADB procurement and disbursement procedures at the provincial and town level which can result in unnecessary delays in project start up and implementation. While all the risks identified are a threat to the successful implementation and sustainability of the completed infrastructure, the most critical is the issue on financial sustainability of completed infrastructure.

2. The risk will be mitigated by (i) providing training to the Department of Housing and Urban Planning (DHU) under the Ministry of Public Works and Transport (MPWT) and its project management unit (PMU), the provincial government officials and provincial Department of Public Works and Transport (DPWT) on fixed asset management including linkage to asset preventive maintenance activities, and on ADB procurement and financial reporting prior to project start up; (ii) strengthening the capacity of the local governments on budget preparation and management and expenditure prioritization; and (iii) engaging a financial specialist under the project management consulting service, and a qualified auditor. These recommendations can be strengthened if they form part of the grant covenants between ADB and Lao PDR.

B. FINANCIAL MANAGEMENT ASSESSMENT

1. Introduction

3. The FMA was conducted in accordance with the ADB Financial Management Technical Guidance Note (May 2015). Primary data were gathered through the FMA questionnaire from the executing agency (EA) and the DPWTs and UDAAs in Bolikhamxay and Khammouan provinces will be the implementing agencies (IAs), and interviews with the relevant government officials. Secondary data were taken from the FMA reports of the previous project. The FMA covered the following aspects: (i) organization and staff capacity; (ii) information management; (iii) funds flow arrangement; (iv) safeguard of assets; (v) strengths and weaknesses; (vi) accounting policies and procedures; (vii) audit; and (viii) project financial reporting system. The FMA was conducted from June to July 2017. The filled up FMA questionnaire is in Appendix A.

2. Project Description

4. The proposed project is designed to enhance the economic development and competitiveness of Paksan and Thakhek towns through investment in basic urban infrastructure improvements for drainage, wastewater collection and treatment, solid waste management, and riverbank protection; and strengthening of institutional capacities for sustainable financial and operational performance improvement of urban services, integrated disaster risk management in urban planning and managing public investments. This is achieved through the following two outputs.

5. Output 1: The project will finance two wastewater subprojects: (i) four SWTPs with a combined capacity of 900 cubic meters (m3))/day for wastewater treatment and 20 kilometer (km) of new sewers in Paksan; and (ii) four SWTPs with a combined capacity of 800 m3/day for

2 Attachment 3

wastewater treatment and 7 km of new sewers in Thakhek. The project will finance two drainage sub-projects: (i) 23 km drainage network in Paksan; and (ii) 9 km drainage network in Thakhek.26 The project will finance two controlled landfills: (i) 220,000 m3 landfill in Paksan; and (iii) 300,000 m3 landfill in Thakhek.27 The project will finance two riverbank protection subprojects: (i) 1,840 meters (m) of embankment in Paksan; and (ii) 4,230 m of embankment in Thakhek. The project will also finance urban renewal and heritage conservation work in Thakhek old town, including a 850-meter riverfront promenade, renovation of old-town square, and restoration and conversion of the post office building into a tourist center to promote sustainable tourism. The design of SWTP, access roads and drainage network will factor disaster and climate risk considerations.

6. Output 2: This output will be delivered through four components: (i) training of 25 government staff (including 10 women) on urban service delivery, asset management, O&M of urban facilities, and other institutional arrangements for improving urban service delivery; (ii) increasing women’s representation in decision making and technical positions to 35% in the project coordination unit (PCU) and 30% in the project implementation units (PIUs) in Paksan and Thakhek; (iii) preparing urban development strategies and master plans with climate resilience and gender responsive measures for Paksan and Thakhek; and (iv) preparing financial sustainability plans for the UDAAs and DPWTs in Bolikhamxay Province and Khammouan Province, including budgeting, tariff setting for wastewater and solid waste management and operational effectiveness.

3. Country and Sector Financial Management Issues28

7. A review of the Country Partnership Strategy (CPS) prepared for Lao PDR for the period 2012 to 2016, showed the following weaknesses in Lao PDR’s public sector management: (i) absence of strategic linkages between planning and budgeting; (ii) inadequate resources to finance recurrent budget; (iii) high dependence on external financing for investment budget with severe shortage of funds for operation and management; (iv) no decree and policy to improve revenue mobilization; (v) central-provincial fiscal relations are challenging and, in practice, the Ministry of Finance is unable to exercise sufficient control over revenues collected and expenditure undertaken by the provincial governments; (vi) and budget execution is weak, including deficient accounting and reporting arrangements. These weaknesses are the source of financial management risks which were considered high during the CPS preparation.

8. The World Bank’s Implementation Completion and Reports (ICR) for the Public Finance Management Strengthening Program showed that Lao PDR’s public financial management system is slowly evolving into a transparent and efficient system. The project focused on four objectives. The summary of the ICR findings are shown in Table 1 below.

Table 1: Lao PDR Public Financial Management Improvements29

Project Objectives Achievements / Status

Improved Macro-Fiscal Discipline

The aggregate expenditure control became more reliable and deviations between approved and actually executed budgets declined. The average deviation from fiscal years (FY) 2009/2010, 2010/2011 and 2011/2012 was about 7.5% which is line with the project target of 5-10% and shows improvement against the baseline of 13.8%. However, MOF has not yet

26 The service area covers the core town areas in each city, covering between 20 and 30% of each city’s population. 27 The service area for solid waste covers between 70% and 85% of each city’s population. 28 Source: Country Partnership Strategy: Lao PDR, 2012-2016. October 2011. 29 ICR for the Public Finance Management Strengthening Program, The World Bank, 24 April 2015.

Attachment 3 3

Project Objectives Achievements / Status

introduced a practice of indicative budget ceilings, one of the project targets.

Improved financial management and control

The project supported the establishment and operations of the Treasury Single Account and consolidation of technical revenue accounts in the budget. The majority of the budget units’ accounts at the commercial banks were closed and moved to the National Treasury. The number of central government agencies’ accounts with commercial banks, while being significantly reduced, still exceeded 200 in FY2012/2013.

Improved revenue management and control

The project enabled the proper identification and registration of taxpayers through the Tax ICT (Information and Communication Technology) system. At the end of August 2013, 9,452 taxpayers were registered, 6,700 of whom were VAT payers. However, the development of modules to support online processing of tax returns and payments remained unfinished. In addition, there was little progress on tax assessment.

Improved sectoral and local allocation and management

The government intended to introduce a transparent set of rules and budget allocation norms to guide allocation of funding to subnational governments. However, no formal rules were adopted by the time of project closure beyond the education sector. In education some norms were used in allocating the budget across subnational governments and since FY2011/2012, the government implemented a per student grant formula for financing primary schools.

4. Project Financial Management System

9. Organization and Staff Capacity. A Project Coordination Unit (PCU) under the Department of Housing and Urban Planning (DHU) is now implementing the 1st GMS CTDP, and the 2nd GMS CTDP. The PCU has 17 staff distributed as follows: management (3), technical (1), financial (7), administrative (3), and utility (3). For the 4th GMS CTDP, additional staff will be needed. Project Implementation Units (PIU) are still to be formed in the Bolikhamxay and Khammouan provinces. The DPWTs and UDAAs have adequate finance and accounting permanent staff who can be nominated to the PIU. The staff, however, need training on ADB’s loan/grant disbursement procedure and reporting.

10. Information Management. The PCU and the PIUs in Bolikhamxay and Khammouan will use an accounting software to record transactions and for report preparation.

11. Funds Flow Arrangement. The current disbursement arrangement of ADB funds used for the 1st GMS CTDP is through three accounts. This includes one imprest account for disbursement of funds related to infrastructure development and other project operational expenditure and two subaccounts to cater to the PCU and PIU’s operating expenses in the project towns. The imprest account will be opened in the National Bank of Lao and the two subaccounts will be opened in

4 Attachment 3

the BCEL (Banque pour le Commerce Exterieur Lao). The same funds flow arrangement is planned for the 4th GMS CTDP.

12. Safeguard of Assets. The Financial Management Manual 2010 (FMM) has a detailed procedure on the safeguard of assets. Equipment, vehicles, computers, furniture are expensed as incurred. All assets based on FMM, including building and machinery (not expensed) procured, are recorded in a fixed asset register (FAR). A condition assessment of all assets is carried out at least once a year. This assessment is an input to the planning, budgeting and monitoring activities of the MPWT. The DPWT is responsible for maintaining the FAR. Existing fixed assets are not covered by insurance except for motor vehicles.

13. Strength and Weaknesses. The EA had already implemented several foreign-funded projects successfully, including projects funded by ADB. Inspite of this experience, it will be beneficial to the project if further training will be given to the PCU on ADB implementation procedures. Some of the weaknesses identified are: (i) assets acquired/ procured are not insured (except for vehicles); (ii) assets are not monitored/ inventoried regularly; (iii) the revenue-generating urban services of the two towns are currently not financially sustainable without subsidy from the provincial and central budgets; and (iv) IAs have not implemented ADB funded projects.

14. Accounting Policies and Procedures. The PCU and PIUs will follow the Ministry of Finance’s (MOF) Accounting Manual 2010 (AM) and the FMM. The FMM contains procedures on budgeting, procurement, disbursement, funds and fixed asset management, auditing and reporting.

15. Audit. In August 2013, the MPWT formed a Department of Finance to oversee implementation of all infrastructure projects. The Department of Finance, comprising six divisions (organization and administration, accounting, treasury, assets, budget, and inspection/audit) has 38 staff. The Accounting Division has nine staff while the Internal Audit Division has two staff. Internal audit of completed projects will be undertaken by this division. The two Provincial DPWTs have an internal audit section. External audit of projects is done by the State Audit Organization (SAO). In cases where the SAO cannot conduct the audit due to manpower constraints, external national private auditors will be engaged. The Lao International Certified Public Accountants and Auditors maintain a list of accredited external auditing firms to provide these services. For this project, project accounts will be audited by a national private auditor to be engaged through competitive bidding.

16. Project Financial Reporting System. The PCU follows the Lao National Accounting Standard (NAS). For the financial reporting during the implementation of this project, the PCU will use the MOF’s FMM and ADB’s Loan Disbursement Handbook 2017 (covering Grant Disbursement). Reports are prepared quarterly, semi-annually and annually. The PCU submits reports to the Department of Housing and Urban Planning for endorsement before they are submitted to the Minister of MPWT. Annual financial statements will follow ADB financial report forms. The PIUs will follow the Lao NAS. For the financial reporting during the implementation of this project, the PIUs will use the MOF’s FMM and ADB’s Loan Disbursement Handbook 2017. Reports are prepared monthly, quarterly, semi-annually and annually. The PIUs will submit reports to the Planning, Budgeting and Statistics Office for consolidation before these are submitted to the Governor. Annual financial statements (income statement and balance sheet) are prepared for the year-end closing of accounts.

Attachment 3 5

5. Risk Assessment and Management Plan

17. While improvements in public financial management were attained since the last CPS was completed in October 2011, some of the risks identified in the CPS are still present in Lao’s financial management system (Table 2).

Table 2: Financial Management, Internal Control and Risk Assessment


Mitigation Measures / Risk Management Plan

Timeline

Inherent Risk

Country Specific- High dependence on external financing for investment budget with severe shortage of funds for operation and management. Entity Specific- Assets, after procurement / completion of construction, are turned over officially to user government entity and recorded in the Fixed Asset Register of the receiving entity. These assets are not monitored/ inventoried regularly. There is a risk of loss of asset not monitored and maintained properly.

High High

Likely Likely

High High

EA to prepare tariff road map to reduce dependence on national government subsidy for O&M. Update Fixed Asset Register every year during and after project implementation. Train government staff in fixed asset management including linkage to asset preventive maintenance activities.

Within 6 months after mobilization of project implementation consultant. Within 3 months after the completion of construction/ procurement for each grant financed asset.

Entity Specific - Recording of actual revenues and expenditure is weak in the provincial and town levels which may result to lack of accountability.

High Likely High Review compliance of the two provincial and two town governments in the implementation of the Budget Law. Identify deficiencies and include a training program in the Capacity Building component of this project.

During first year of project implementation (2019).

Overall Inherent Risk High

Project Risk

Implementing Agency (PIU) - Lack of

High

Unlikely

Substantial

Train project staff in ADB

During first year of project

6 Attachment 3


Mitigation Measures / Risk Management Plan

Timeline

knowledge /training in ADB procurement, disbursement and reporting standards may result to delays in project start up. Reporting and monitoring - The PIUs are unfamiliar with the accounting software that is currently used by the PCU for GMS2 and will be used for GMS4 to record transactions and for report preparation.

High

Likely

Moderate

procurement and financial reporting prior to project start up. Train PIU staff on the use of project accounting and monitoring software.

implementation (2019). Within 6 months after mobilization of project implementation consultant.

Overall Control Risk Substantial

Overall Risk High ADB = Asian Development Bank, DPWT = Department of Public Works and Transport, MOF = Ministry of Finance; MPWT = Ministry of Public Works and Transport, O&M = operations and maintenance; PIU = project implementation unit, PMU = project management unit, Q = quarter

Attachment 3 7

APPENDIX A : FINANCIAL MANGEMENT ASSESSMENT COMPLETED QUESTIONNAIRE

Topic Response Potential Risk

Event

Agencies Department of Housing and

Urban Planning (DHU), MPWT / PCU30

Bolikhamxay Provincial DPWT31 /

PIU

Khammouan Provincial DPWT / PIU

1.1 What is the entity’s legal status/ registration?

DHU is a government entity under the MPWT.

DPWT is a government entity under the MPWT.

DPWT is a government entity under the MPWT. Khammouan Decision No 9555/PWT dated 16/07/2009.

1.2 How much equity (shareholding) is owned by the Government?

Not Applicable (NA) NA NA

1.3 Obtain the list of beneficial owners of major blocks of shares (non-governmental portion), if any.

NA NA NA

1.4 Has the entity implemented an externally-financed project in the past? If yes, please provide details.

Yes. Pakse Urban Environment Project, 1st GMS CTDP, 2nd GMS CTDP, Secondary Towns Development Project, Small Towns Development Project, and Urban Environment Improvement Project, all funded by ADB.

Yes. Secondary Towns Development Project, Small Towns Development Project, and Urban Environment Improvement Project, all funded by ADB.

Yes. Projects funded by WB, ADB, SIDA, and JICA. Thakhek Water Supply Plant Construction and KOCA Water Supply Plant Constuction.

1.5 Briefly describe the statutory reporting requirements for the entity.

Monthly, quarterly, semester, and annual report submitted to the MPWT.

1.6 Describe the regulatory or supervisory agency of the entity.

The DHU is one of the departments under the MPWT.

Provincial DPWTs are line agencies of the MPWT.

1.7 What is the governing body for the project? Is the governing body for the project independent?

MPWT. Yes, it is independent.

MPWT

1.8 Obtain current organizational structure and describe key management personnel. Is the organizational structure and

Organizational structure will be provided in the draft final report.

30 The responses to this questionnaire describe the existing situation in the Project Coordination Unit (PCU) under its present legal status, structure and staffing.

The PCU is under the Department of Housing and Urban Planning (DHU), MPWT. 31 Since the PIUs are not yet established, some responses refer to the Provincial DPWT.

8 Attachment 3


Event




PIU


governance appropriate for the needs of the project?

1.9 Does the entity have a Code of Ethics in place?

Yes. Yes.

1.10 Describe (if any) any historical issues reports of ethics violations involving the entity and management. How were they addressed?

None. None.

2. Funds Flow Arrangements

2.1 Describe the (proposed) project funds flow arrangements in detail, including a funds flow diagram and explanation of the flow of funds from ADB, government and other financiers, to the government, EA, IA, suppliers, contractors, ultimate beneficiaries, etc. as applicable.

The flow of funds is from ADB/ government accounts to the imprest account in the National Bank of Lao managed by the Ministry of Finance, before releasing to the PCU account which is opened in Banque pour le Commerce Exterieur Lao, and to the PIU accounts in Banque pour le Commerce Exterieur Lao in Bolikhamxay and Khammouan. ADB and government funds will be deposited in separate accounts. The proposed project funds flow arrangements are shown in Annex 1.

2.2 Are the (proposed) arrangements to transfer the proceeds of the loan/grant (from the government/ Finance Ministry) to the entity and to the end-recipients satisfactory?

Yes. Yes. Yes.

2.3 Are the disbursement methods appropriate?

Yes. Yes. Yes.

2.4 What have been the major problems in the past involving the receipt, accounting and /or administration of funds by the entity?

No major problems were experienced.

NA NA Delay in payment of contractors resulting to delay in work progress at the sites.

2.5 In which bank will the Imprest Account (if applicable) be established?

National Bank of Lao. Banque pour le Commerce Exterieur Lao (BCEL).

2.6 Is the bank in which the Imprest account is established capable of −

Attachment 3 9


Event




PIU


• Executing foreign and local currency transactions?

• Issuing and administering letters of credit (LC)?

• Handling a large volume of transaction?

• Issuing detailed monthly bank statements promptly?

Yes. Yes. Yes. Yes.

Yes. Yes. Yes. Yes.

2.7 Is the ceiling for disbursements from the Imprest account and SOE appropriate/ required?

Yes, it is according to FMM and ADB’s LDH.

NA NA

2.8 Does the (proposed) project implementing unit (PIU) have experience in the management of disbursements from ADB?

Yes. NA. PIU not yet formed. For PDPWT/PIU, lack of experience/training may result in delays in project start up.

2.9 Does the PIU have adequate administrative and accounting capacity to manage the Imprest fund and statement of expenditure (SOE) procedures in accordance with ADB’s Loan Disbursement Handbook (LDH)? Identify any concern or uncertainty about the PIU’s administrative and accounting capability which would support the establishment of a ceiling on the use of the SOE procedure.

Yes. NA NA Lack of experience/training in project implementation may result in delays in fund disbursements.

2.10 Is the entity exposed to foreign exchange risk? If yes, describe the entity’s policy and arrangements for managing foreign exchange risk.

No.

2.11 How are the counterpart funds accessed?

Counterpart funds are included in the annual government budget and are disbursed through the standard government procedure.

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2.12 How are payments made from the counterpart funds?

Based on national budget plan, funds are requested for the Project and after approval of MPWT and the MOF, funds are transferred to the bank account of the recipient.

2.13 If project funds will flow to communities or NGOs, does the PIU have the necessary reporting and monitoring arrangements and features built into its systems to track the use of project proceeds by such entities?

NA

2.14 Are the beneficiaries required to contribute to project costs? If beneficiaries have an option to contribute in kind (in the form of labour or material), are proper guidelines and arrangements formulated to record and value the labour or material contributions at appraisal and during implementation?

No.

3. Staffing

3.1 What is the current and/or proposed organizational structure of the accounting department? Attach an organization chart.

The organizational chart (simplified) of the PCU showing the finance group is attached in Annex 2.

The proposed organizational chart of the PIUs is attached in Annex 3.

3.2 Will existing staff be assigned to the project, or will new staff be recruited?

PCU will use existing staff and recruit additional contract staff.

The existing staff of the Provincial DPWT and UDAA can be proposed. This will be finalized after grant approval.

3.3 Describe the existing or proposed project accounting staff, including job title, responsibilities, educational background and professional experience. Attach job descriptions and CVs of key existing accounting staff.

The proposed terms of reference and qualifications of the additional PCU and PIU staff are attached in Annex 4 and Annex 5.

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3.4 Is the project finance and accounting function staffed adequately?

No. Additional contract staff are needed during project implementation.

NA NA

3.5 Are the project finance and accounting staff adequately qualified and experienced?

Yes. NA NA

3.6 Are the project finance and accounting staff trained in ADB procedures, including the disbursement guidelines (i.e., LDH)?

Yes. NA NA

3.7 What is the duration of the contract with the project finance and accounting staff?

The staff will be retained / hired until the end of the project.

3.8 Identify any key positions of project finance and accounting staff not contracted or filled yet, and the estimated date of appointment.

Head of finance, 1 accountant, 1 cashier and 1 driver will be recruited at the start of the project implementation.

1 Accountant will be assigned / recruited at the start of the project implementation.

3.9 For new staff, describe the proposed project finance and accounting staff, including job title, responsibilities, educational background and professional experience. Attach job descriptions.

The details are in Annex 4 and Annex 5.

3.10 Does the project have written position descriptions that clearly define duties, responsibilities, lines of supervision, and limits of authority for all of the officers, managers, and staff?

Yes. None. None.

3.11 What is the turnover rate for finance and accounting personnel (including terminations, resignations, transfers, etc.)?

Very low. NA NA

3.12 What is training policy for the finance and accounting staff?

None. NA NA

12 Attachment 3


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3.13 Describe the list of training programs attended by finance and accounting staff in the last 3 years.

Project financial management, disbursement, account entry and audit reporting.

NA NA

4. Accounting Policies and Procedures

4.1 Does the entity have an accounting system that allows for the proper recording of project financial transactions, including the allocation of expenditures in accordance with the respective components, disbursement categories, and sources of funds (in particular, the legal agreements with ADB)? Will the project use the entity accounting system? If not, what accounting system will be used for the project?

Yes. The project will use the accounting system based on FMM and ADB’s LDH.

No. The project will use the accounting system based on FMM and ADB’s LDH using an accounting software developed for the EA.

4.2 Are controls in place concerning the preparation and approval of transactions, ensuring that all transactions are correctly made and adequately explained?

Yes. Yes.

4.3 Is the chart of accounts adequate to properly account for and report on project activities and disbursement categories? Obtain a copy of the chart of accounts.

Yes.

Yes.

4.4 Are cost allocations to the various funding sources made accurately and in accordance with established agreements?

Yes. Yes.

4.5 Are the General Ledger and subsidiary ledgers reconciled monthly? Are actions taken to resolve reconciliation differences?

Yes. Yes.

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4.6 Describe the EA’s policy for retention of accounting records including supporting documents (e.g, ADB’s policy requires that all documents should be retained for at least 1 year after ADB receives the audited project financial statements for the final accounting period of implementation, or 2 years after the grant closing date, whichever is later). Are all accounting and supporting documents retained in a defined system that allows authorized users easy access?

All accounting and supporting documents are retained on a permanent basis in a defined system that allows authorized users for easy access.

NA NA

4.7 Describe any previous audit findings that have not been addressed.

None. None.

Segregation of Duties

4.8 Are the following functional responsibilities performed by different units or persons: (i) authorization to execute a transaction; (ii) recording of the transaction; (iii) custody of assets involved in the transaction; and (iv) reconciliation of bank accounts and subsidiary ledgers?

Yes. Yes.

4.9 Are the functions of ordering, receiving, accounting for, and paying for goods and services appropriately segregated?

Yes.

Yes.

14 Attachment 3


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Budgeting System

4.10 Do budgets include physical and financial targets?

Yes. Yes. Yes.

4.11 Are budgets prepared for all significant activities in sufficient detail to allow meaningful monitoring of subsequent performance?

Yes. Yes. Yes.

4.12 Are actual expenditures compared to the budget with reasonable frequency? Are explanations required for significant variations against the budget?

Yes. Yes. Yes.

4.13 Are approvals for variations from the budget required (i) in advance, or (ii) after the fact?

In advance. Variations from the budget allowed after the implementation of the first semester.

4.14 Is there a ceiling, up to which variations from the budget may be incurred without obtaining prior approval?

All variations need prior approval.

4.15 Who is responsible for preparation, approval and oversight/monitoring of budgets?

The PCU Director submits to project steering head and to the Director of DHU for approval.

Director of DPWT.

4.16 Describe the budget process. Are procedures in place to plan project activities, collect information from the units in charge of the different components, and prepare the budgets?

Yes. Yes.

4.17 Are the project plans and budgets of project activities realistic, based on valid assumptions, and developed by knowledgeable individuals?

Yes.

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Is there evidence of significant mid-year revisions, inadequate fund releases against allocations, or inability of the EA to absorb/spend released funds?

Is there evidence that government

counterpart funding is not made available adequately or on a timely basis in prior projects?

What is the extent of over- or under budgeting of major heads over the last 3 years? Is there a consistent trend either way?

No. No. About 7.5% from FY2009/10 to 2011/12.

Payments

4.18 Do invoice-processing procedures require: (i) Copies of purchase orders and receiving reports to be obtained directly from issuing departments? (ii) Comparison of invoice quantities, prices and terms, with those indicated on the purchase order and with records of goods actually received? (iii) Comparison of invoice quantities with those indicated on the receiving reports? (iv) Checking the accuracy of calculations? (v) Checking authenticity of invoices and supporting documents?

Yes. Yes. Yes.

4.19 Are all invoices stamped PAID, dated, reviewed and approved,

Yes. Yes. Yes.

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recorded/entered into the system correctly, and clearly marked for account code assignment?

4.20 Do controls exist for the preparation of the payroll? Are changes (additions/deductions/modifications) to the payroll properly authorized?

Yes. Yes. Yes.

Policies And Procedures

4.21 What is the basis of accounting (e.g., cash, accrual) followed (i) by the entity? (ii) By the project?

Accrual

4.22 What accounting standards are followed: International Financial Reporting Standards, International Public Sector Accounting Standards – cash or accrual, or National Accounting Standards (specify) or other?

Lao Accounting Standards.

4.23 Does the project have adequate policies and procedures manual(s) to guide activities and ensure staff accountability?

Yes. Yes.

4.24 Is the accounting policy and procedure manual updated regularly and for the project activities?

Yes. Yes.

4.25 Do procedures exist to ensure that only authorized persons can alter or establish a new accounting policy or procedure to be used by the entity?

Yes.

Yes.

4.26 Are there written policies and procedures covering all routine financial management and related administrative activities?

Yes. Yes.

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4.27 Do policies and procedures clearly define conflict of interest and related party transactions (real and apparent) and provide safeguards to protect the organization from them?

Yes. Yes.

4.28 Are manuals distributed to appropriate personnel?

Yes. Not yet. Not yet.

4.29 Describe how compliance with policies and procedures are verified and monitored.

The compliance with policies and procedures are verified and monitored in accordance with FMM.

Cash and Bank

4.30 Indicate names and positions of authorized signatories for bank accounts. Include those persons who have custody over bank passwords, USB keys, or equivalent for online transactions.

Mr. Director of Finance Department, MPWT

Mr. Kaithong, Director, DPWT; Mr Thone, Deputy Director, DPWT and Mr.Thonglith, Chief Accountant, DPWT.

Mr Phissamay, Director, DPWT; Mr.Khouanta and Mr. Odej, Deputy Directors, DPWT

4.31 Does the organization maintain an adequate and up-to-date cashbook recording receipts and payments?

Yes. Yes.

4.32 Describe the collection process and cash handling procedures. Do controls exist for the collection, timely deposit and recording of receipts at each collection location?

Yes. Yes.

4.33 Are bank accounts reconciled on a monthly basis? Or more often? Is cash on hand physically verified,and reconciled with the cash books? With what frequency is this done?

Monthly basis.

4.34 Are all reconciling items approved and recorded?

Yes. Yes.

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4.35 Are all unusual items on the bank reconciliation reviewed and approved by a responsible official?

Yes. Yes.

4.36 Are there any persistent/non-moving reconciling items?

No. No.

4.37 Are there appropriate controls in safekeeping of unused cheques, USB keys and passwords, official receipts and invoices?

Yes. Yes.

4.38 Are any large cash balances maintained at the head office or field offices? If so, for what purpose?

No. NA

4.39 For online transactions, how many persons possess USB keys (or equivalent), and passwords? Describe the security rules on password and access controls.

NA

NA

Safeguard over Assets

4.40 What policies and procedures are in place to adequately safeguard or protect assets from fraud, waste and abuse?

The policies and procedures are clearly stated in FMM.

4.41 Does the entity maintain a Fixed Assets Register? Is the register updated monthly? Does the register record ownership of assets, any assets under lien or encumbered, or have been pledged?

Yes. FAR contains all assets procured. A condition assessment of assets is supposed to be carried out at least once a year, but in reality this is not done always.

May result to loss of asset due to poor monitoring and maintenance.

4.42 Are subsidiary records of fixed assets, inventories and stocks kept up to date and reconciled with control accounts?

Yes. Yes.

4.43 Are there periodic physical inventories of fixed assets, inventories and stocks? Are fixed

Yes. Yes.

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assets, inventories and stocks appropriately labelled?

4.44 Are the physical inventory of fixed assets and stocks reconciled with the respective fixed assets and stock registers, and discrepancies analysed and resolved?

Yes. Yes.

4.45 Describe the policies and procedures in disposal of assets. Is the disposal of each asset appropriately approved and recorded? Are steps immediately taken to locate lost, or repair broken assets?

These re stated in the FMM.

4.46 Are assets sufficiently covered by insurance policies?

Only motor vehicles are covered by insurance.

4.47 Describe the policies and procedures in identifying and maintaining fully depreciated assets from active assets.

These are stated in the FMM.

Other Offices and Implementing Entities

4.48 Describe any other regional offices or executing entities participating in implementation.

NA NA NA

4.49 Describe the staff, their roles and responsibilities in performing accounting and financial management functions of such offices as they relate to the project.

NA NA NA

4.50 Has the project established segregation of duties, controls and procedures for flow of funds and financial information, accountability,

NA NA NA

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and reporting and audits in relation to the other offices or entities?

4.51 Does information among the different offices/ implementing agencies flow in an accurate and timely fashion? In particular, do the offices other than the head office use the same accounting and reporting system?

NA NA NA

4.52 Are periodic reconciliations performed among the different offices/implementing agencies? Describe the project reporting and auditing arrangements between these offices and the main executing/implementing agencies.

NA NA NA

4.53 If any sub-accounts (under the Imprest Account) will be maintained, describe the results of the assessment of the financial management capacity of the administrator of such sub-accounts.

NA NA NA

Contract Management and Accounting

4.54 Does the agency maintain contract-wise accounting records to indicate gross value of contract, and any amendments, variations and escalations, payments made, and undisbursed balances? Are the records consistent with physical outputs/deliverables of the contract?

Yes. Yes. Yes.

4.55 If contract records are maintained, does the agency

Yes. Yes. Yes.

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reconcile them regularly with the contractor?

Other

4.56 Describe project arrangements for reporting fraud, corruption, waste and misuse of project resources. Has the project advised employees, Beneficiaries and other recipients to whom to report if they suspect fraud, waste or misuse of project resources or property?

Yes, the project has a procedure on the use of project assets.

NA

5. Internal Audit

5.1 Is there an internal audit (IA) department in the entity?

Yes. In August 2013, the MPWT formed the DOF to oversee implementation of all infrastructure projects. The DOF, comprising six divisions (organization and administration, accounting, treasury, assets, budget, and inspection/audit) has 38 staff. The Accounting Division has nine staff while the Internal Audit Division has two staff. Internal audit of completed projects will be undertaken by this division.

Yes. Yes.

5.2 What are the qualifications and experience of the IA staff?

They are finance or accounting graduates and experienced in finance and accounting and some in IT

5.3 To whom does the head of the internal audit report?

Minister of MPWT. Director of DPWT.

5.4 Will the internal audit department include the project in its annual work program?

Yes. Yes. Yes.

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5.5 Are actions taken on the internal audit findings?

Yes. Yes. Yes.

5.6 What is the scope of the internal audit program? How was it developed?

The audit is performed only within the offices relevant to DPWT and was developed accordingly with Donor’s procedures for the project and MOF for government budget.

5.7 Is the IA department independent?

Yes. Yes. Yes.

5.8 Do they perform pre-audit of transactions?

Yes

5.9 Who approves the internal audit program?

Director of audited agencies

5.10 What standards guide the internal audit program?

The audit program follows Donor’s guide for Project and MOF for government budget

5.11 How are audit deficiencies tracked?

Audit deficiencies are tracked by verifying the records and supporting documents

5.12 How long have the internal audit staff members been with the organization?

The internal audit staff members are considered as government employee and will work with the organization as they or the latter want.

5.13 Does any of the internal audit staff have an IT background?

Yes for some of them

5.14 How frequently does the internal auditor meet with the audit committee without the presence of management?

Not so frequent, only when the issues are individually involved with the management

5.15 Has the internal auditor identified/reported any issue with reference to availability and completeness of records?

Yes some recommendation have been made by internal auditor for improving the management quality

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5.16 Does the internal auditor have sufficient knowledge and understanding of ADB’s guidelines and procedures, including the disbursement guidelines and procedures (i.e., LDH)?

Yes

6. External Audit – entity level

6.1 Is the entity financial statement audited regularly by an independent auditor? Who is the auditor?

No. The State Audit Organization (SAO) does the external audit but not on a regular basis.

6.2 Are there any delays in audit of the entity? When are the audit reports issued?

No, the audit report is issued not later than 3 weeks after audit completion.

6.3 Is the audit of the entity conducted in accordance with the International Standards on Auditing, or the International Standards for Supreme Audit Institutions, or national auditing standards?

International Standards on Auditing. National Auditing Standards.

6.4 Were there any major accountability issues noted in the audit report for the past three years?

No. No.

6.5 Does the external auditor meet with the audit committee without the presence of management?

Yes, only when the issues are individually involved with the management

6.6 Has the entity engaged the external audit firm for any non-audit engagements (e.g., consulting)? If yes, what is the total value of non-audit engagements, relative to the value of audit services?

No

6.7 Has the external auditor expressed any issues on the availability of complete records and supporting documents?

Yes, some recommendation have been made by external auditor for improving the management quality

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6.8 Does the external auditor have sufficient knowledge and understanding of ADB’s guidelines and procedures, including the disbursement guidelines and procedures (i.e., LDH)?

Yes

6.9 Are there any material issues noted during the review of the audited entity financial statements that were not reported in the external audit report?

No

External Audit – project level

6.10 Will the entity auditor audit the project accounts or will another auditor be appointed to audit the project financial statements?

Yes. In addition, a private external auditor will audit the projects accounts.

6.11 Are there any recommendations made by the auditors in prior project audit reports or management letters that have not yet been implemented?

None. None.

6.12 Is the project subject to any kind of audit from an independent governmental entity (e.g. the supreme audit institution) in addition to the external audit?

Yes (SAO). Yes (SAO).

6.13 Has the project prepared acceptable terms of reference for an annual project audit? Have these been agreed and discussed with the EA and the auditor?

Not yet. Draft TOR for external auditor is attached in Annex 6.

6.14 Has the project auditor identified any issues with the availability and completeness of records and supporting documents?

NA NA

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6.15 Does the external auditor have sufficient knowledge and understanding of ADB’s guidelines and procedures, including the disbursement guidelines and procedures (i.e., LDH)?

NA NA

6.16 Are there any recommendations made by the auditors in prior audit reports or management letters that have not yet been implemented?

None. None.

[For second or subsequent projects] 6.17 Were past audit reports complete, and did they fully address the obligations under the loan/grant agreements? Were there any material issues noted during the review of the audited project financial statements and related audit report that have remained unaddressed?

Yes, it was complete. No, there were no material issues noted.

NA NA

7. Reporting and Monitoring

7.1 Are financial statements and reports prepared for the entity?

Yes. NA

7.2 Are financial statements and reports prepared for the implementing unit(s)?

NA Yes.

7.3 What is the frequency of preparation of financial statements and reports? Are the reports prepared in a timely fashion so as to be useful to management for decision making?

The frequency of preparation of financial statements are monthly, quarterly, semester and annually.

The frequency of preparation of financial statements (entity) are monthly, quarterly, semester and annually.

7.4 Does the entity reporting system need to be adapted for project reporting?

Yes. Yes.

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7.5 Has the project established financial management reporting responsibilities that specify the types of reports to be prepared, the report content, and purpose of the reports?

Not yet. Not yet.

7.6 Are financial management reports used by management?

Yes. Yes. Yes.

7.7 Do the financial reports compare actual expenditures with budgeted and programmed allocations?

Yes. Yes. Yes.

7.8 How are financial reports prepared? Are financial reports prepared directly by the automated accounting system or are they prepared by spreadsheets or some other means?

The financial reports are prepared using MS Word and accounting software that was specifically designed for the GMS2 project.

7.9 Does the financial system have the capacity to link the financial information with the project's physical progress? If separate systems are used to gather and compile physical data, what controls are in place to reduce the risk that the physical data may not synchronize with the financial data?

Yes.

No. No.

7.10 Does the entity have experience in implementing projects of any other donors, co-financiers, or development partners?

Yes.

Yes. Yes.

8. Information Systems

8.1 Is the financial accounting and reporting system computerized?

No. No. No.

8.2 If computerized, is the software off-the-shelf, or customized?

NA NA NA

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8.3 Is the computerized software standalone, or integrated and used by all departments in the headquarters and field units using modules?

NA NA NA

8.4 How are the project financial data integrated with the entity financial data? Is it done through a module in the enterprise financial system with automatic data transfer, or does it entail manual entry?

NA NA NA

8.5 Is the computerized software used for directly generating periodic financial statements, or does it require manual intervention and use of Excel or similar spreadsheet software?

Yes NA NA

8.6 Can the system automatically produce the necessary project financial reports?

NA NA NA

8.7 Is the staff adequately trained to maintain the computerized system?

NA NA NA

8.8 Do the management, organization and processes and systems safeguard the confidentiality, integrity and availability of the data?

NA NA NA

8.9 Are there back-up procedures in place?

NA NA NA

8.10 Describe the backup procedures – online storage, offsite storage, offshore storage, fire, earthquake and calamity protection for backups.

NA NA NA

28 Attachment 3

ANNEX 1: PROPOSED FUNDS FLOW

Notes: ADB – Asian Development Bank MOF – Ministry of Finance PCU – Project Coordination Unit PIU - Project Implementation Unit

Funds flow Documents flow

PIU-Khammouan

Sub-account

PIU-Bolikhamxay

Sub-account

PCU

Sub-account

MOF

Advance Account

Consultants / Contractors /

Suppliers

ADB

Attachment 3 29

ANNEX 2A: EXISTING ORGANIZATIONAL CHART OF PCU

PCU Director

Executive Secretary

Procurement

Officer

Accountant

(2)

Finance

Officer (2)

Cashier

(2)

Deputy Director

Deputy Director

Chief of

Finance and Accounting

Administration

Officer (3)

Driver

(2)

30 Attachment 3

ANNEX 2B: PROPOSED ORGANIZATIONAL CHART OF PCU FOR GMS-4 PROJECT

Mr. Virachith DOUANGCHANH

Deputy PCU Director

Mr. Phoungeun PHOMMAHA

Deputy PCU Director

Ms. Heuangmany KHAMPHITHOUN

Chief Finance and Accounting Officer

Mr. Noi

PHONKHAMXAO

Chauffeur

Mr. Phonepakob

VONGSANITH

Chauffeur

Mr. Phoutha

KHOUNVITHONG

Procurement

Ms. Soukvilay

KHOUNSIMOUKDA

Admin

Project Coordination Unit

ORGANIZATIONAL CHART

Ms. Chittaphone

CHALEUNPHANITH

Executive Secretary

Ms. Vongphachanh

BUBPHA

Accountant for

GMS1/GMS4

Mr. Sisavanh

BOUNTHALAT

Accountant for GMS2

Ms. Chanthavilay

THIPPHAVONG

Finance Officer

Ms. Kongphaeng

CHANTHALATH

Cashier

Mr. Mitsaphone

SENGKHAMYONG

Admin

Secretary

(GMS4) Procurement

(GMS4)

Admin

(GMS4)

Chauffeur

(GMS4)

Finance

officer for

Sub-project

(GMS4)

Finance Office for

Imprest & Direct Acc

(GMS4)

Cashier

(GMS4)

Attachment 3 31

ANNEX 3: PROPOSED ORGANIZATIONAL CHART OF PIU

- Secretary

- Administration

Officer

- Finance Officer

- Accountant

- Cashier

- Driver

Project Implementation Unit

PROPOSED ORGANIZATIONAL CHART

32 Attachment 3

ANNEX 4: TERMS OF REFERENCE AND QUALIFICATION FOR PROJECT ACCOUNTANT (PA)

The PA’s responsibilities will include, but not to be limited to:

• Support the Finance Officer (FO) in overall management, maintaining internal control and monitoring the integrity of the project accounts, and project petty cash fund including preparation of monthly reconciliations in accordance with Financial Management Manual (FMM) and MOF’s Accounting Manual (AM);

• Assist the FO in preparing, cheques, transfer orders, liquidation of advances and monthly reconciliation statements;

• Assist the FO in preparing the following: withdrawal applications, process contract payment certificate, contract register, together with the relevant supporting documents including Statement of Expenditures (SOE) or Summary Sheet (SS), submission of documents to MPWT and MOF for approval; and updating the payment tracking of WA registers;

• Assist the FO in preparing and consolidating the budget/disbursement plan based on the procurement plan for the approval of the project management, MOF, and the ADB for the reliable implementation of the annual work plans;

• Assist the FO in preparing and consolidating the budget/disbursement plan based on the procurement plan for the approval of the project management, MOF, and the DPs for the reliable implementation of the annual work plans;

• Record daily financial transactions in the accounting system in accordance with the FMM;

• Support the FO to prepare necessary documents for internal and independent audits;

• Assist the FO in managing equipment, machines and furniture of project and other assets listed in the FAR according to FMM;

• Prepare, manage and update Project documents in an appropriate way; and

• Implement other duties as assigned by FO.

Qualification Requirements:

• Bachelor’s Degree in Financial Accounting or Equivalent;

• At least two years of work experience in financial management, experience with externally funded projects (ADB, WB or other funded projects);

• Good knowledge of any Accounting Software;

• Familiarity with FMM and AM;

• Demonstrated ability to consult and work cooperatively with others; and

• Fluent in spoken and written Lao and English.

Attachment 3 33

ANNEX 5: TERMS OF REFERENCE AND QUALIFICATION FOR FINANCE OFFICER (FO)

The FO’s responsibilities will include, but not to be limited to:

• Overall management, internal control and monitoring the project accounts, and project petty cash funds including preparation of monthly reconciliations in accordance with Financial Management Manual (FMM) and MOF’s Accounting Manual (AM);

• Overall management of finance staff;

• Ensure all fund receipts and expenditures are authorized in line with established financial procedures and financing agreement with proper supporting documents and are properly recorded;

• Setup, update, and maintain the accounting system when necessary;

• Provide support to the UDAAs and provincial DPWTs to enhance the financial sustainability of the subprojects, including developing their capacity to prepare financial projections, set tariffs and monitor the affordability of tariffs to low-income households;

• Review withdrawal applications, process contract payment certificate, contract register, together with the relevant supporting documents including Statement of Expenditures (SOE) or Summary Sheet (SS); submit the documents to MPWT and MOF for approval; and update payment tracking of WA registers;

• Prepare the update of all the contracts of civil works, goods, and consultants to the project management on a monthly basis;

• Review Monthly, Quarterly, Annual Financial Management Reports (FMRs) and submit them to the Chief of Finance and Accounting (CFA) for review;

• Monitor project cash flow and take appropriate actions to ensure safe and efficient management of funds;

• Prepare and consolidate the budget/disbursement plan based on the procurement plan for the CFA’s review;

• Prepare the project financial statements for the audit by the external auditors and monitor audit results, management response and resolution of issues arising from the audit, if any;

• Maintain, update, and periodically count the inventory in according to the FMM, and prepare a periodic report of purchase/disposal of the property; and

• Ensure that the project complies at all times with the FMM, AM, and ADBs’ Disbursement Guidelines.

Minimum Qualification Requirements

• Bachelor’s Degree in Accounting or Financial Management or equivalent;

• At least 5 years of work experiences in financial management, experience with externally funded projects (ADB, WB, or other DP funded projects);

• Good knowledge of any Accounting Software;

• Familiarity with Lao PDR guidelines and procedures such as FMM and AM; and

• Fluent in spoken and written Lao and English.

34 Attachment 3

ANNEX 6: TERMS OF REFERENCE FOR EXTERNAL AUDITORS

For Projects Funded under Loans/Grants from Asian Development Bank

1. Purpose of the Audit 1. The objective of the audit of the financial statements of each Project is to enable the auditor to express a professional opinion on the financial position of the Project based on the list of the funds received and expenditure incurred during the year/period then ended as well as an opinion on the statements of receipts and expenditure and the Imprest Accounts of the Project. The auditor will also be required to express a professional opinion on the compliance with the covenants of the Loan/Grant Agreement.

2. A management letter will also be provided by the audit firm, which will contain an opinion of the auditor on the financial management accounting and internal control systems of the entity, with recommendations for any changes needed to improve performance.

2. Scope of the Audit 3. The audit will be carried out in accordance with International Standards of Auditing and will include such tests considered necessary in order to provide sufficient evidence that gives reasonable assurance that the financial statements are free from material misstatement whether caused by fraud or other irregularity or error. The auditor should state in the audit report if the audit was not in conformity with any of the above and indicate the alternative standards or procedures followed. 4. The audit should cover income and expenditure having been made through imprest account, reimbursement, direct payment and commitment. 5. Special attentions are required on:

• Verify that expenditure claimed under the statement of expenditure is in compliance with the accounting records

• The project’s accounts have been prepared in accordance with consistently applied International Accounting Standards and give a true and fair view of the financial situation of the project and of resources and expenditure for the year ended on that date.

• Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditure at all level of the project and other financial transaction. Comprehensive assessment of the adequacy and effectiveness of the regular cash reconciliations and petty cash management.

• Determine the eligibility of expenditure in line with provisions of the Grant Agreement. Where ineligible expenditure were included in the statement of expenditure was included in the reports, these should be noted separately by the auditors.

6. The goods, works and services financed have been procured transparently, competitively and in accordance with the procurement plan, grant agreement and relevant Procurement Manuals approved. The transactions are properly justified, and all supporting documents are available.

Attachment 3 35

7. A review of the fixed assets procured. The auditor will also specifically review if the allocation of project vehicles has been undertaken and is being utilized in accordance with the relevant Loan/Grant agreement. 8. Compliance with Financial Management Manual and Accounting Manual 9. MOF and ADB can request access to the auditors unedited audit working papers.

3. Methodology 10. In response to the terms of reference, a methodology will be proposed by the audit firm. The methodology should address as a minimum:

• Compliance with ISA

• Understanding of the environment and key areas of audit risk for the project

• Audit planning and the role that the client is expected to play in this process

• The proposed audit teams experience

• The resources to be allocated to the audit to address the risks identified

• The approach to field work (i.e. gathering of evidence to support assertions to be made in the audit opinions)

• Quality assurance arrangements (including mechanisms for the client to be involved in this process)

• Timetable for completion of the audit work.

4. The Audit Report 11. The auditors’ reports on the project’s financial statement should include at least the following matters:

• The audit report will state the purpose of the report and its intended use

• Accounting standards that have been applied and indicate in the project’s financial statements and indicate the effect of any deviations from those standards.

• The audit standards that were applied (International Standards on Auditing)

• The audit opinion is required to cover both the current period and the cumulative period since commencement of the project

• The audit opinion will state whether or not the financial statements present fairly the financial position and transactions for the project in accordance with the accounting standards.

• The audit opinion will state whether the use of grant proceeds was in compliance with the grant covenants.

5. Management Letter

12. The auditors must prepare and submit a management letter at the completion of the audit and the management letter should address as a minimum the following: 13. Any material weaknesses in the accounting and internal control system which were identified during the audit.

36 Attachment 3

14. Significant matters raised in previous reports which have not been dealt with effectively. Matters which have come to the auditor’s attention during the course of the audit which might have a significant impact on the implementation of the Project. Any other matter which the auditor considers should be brought to the attention of the MOF and ADB. At least the following topics/issues should be included:

• The effectiveness of the internal control system in providing project management with useful and timely information for corrective action

• The general effectiveness of the internal controls system in asset management and maintenance

• The effectiveness of the internal control system in ensuring compliance with laws, regulations and financing agreements

• Any identified weaknesses in the internal control environment, including the auditors assessment of the impact on the project and recommendations for remedial action

• Where the internal controls are not reliable, the auditor will provide details of the assessment and the alternative methods employed to gain assurance over the accuracy and completeness of the financial statements

• The adequacy of procurement and contract filing systems

6. Exit conference 15. Upon completion of the field work, the auditor will hold an exit conference with the project management. The exit conference will give the auditor an opportunity to obtain managements comments on the accuracy and completeness of the auditors’ findings, conclusions, and recommendations. Issues discussed and/or raised in the exit conference should be properly documented and includes in the audit work papers.

16. The audit firm will also organize a wrap-up session for MOF and ADB to share common findings across projects being audited and provide recommendations for addressing bottlenecks in preparation for the next audit.

7. Accounting and Reporting Standards 17. The financial and administrative internal controls and checks must be considered. Systems of internal controls and checks, including internal audit, must be reviewed and evaluated. This process will determine the degree of reliance that can be placed upon the existing arrangements, and the extent of testing that needs to be performed by the auditor.

8. Staffing and Qualifications 18. The audit firm must submit its personnel schedule and price quotation per project 19. Curriculum vitae (CVs) must be provided in the bid submission, including a list of who would be responsible for providing the opinions and reports, together with the CVs of managers, supervisors and key personnel to be involved in the audit work. 20. CVs of proposed auditors should include audit experience carried out by these staff, including ongoing assignments. 21. The audit firm must notify the MOF every time the auditor substitutes a staff member.

Attachment 3 37

22. The auditors need to be impartial and independent from any aspects of management or financial interest in the EA/IA under audit. 23. Auditors are required to disclose any relationship likely to compromise their independence in their bid proposal.

24. The Auditor shall have the right of access to banks and depositories, consultants, contractors and other persons or firms engaged by the project. In case access has been restricted, the auditor must note this in the management letter.

9. Deliverables and Timing 25. Five sets of the financial statements and the associated audit report and management letters in English shall be delivered to each EA and a set provided to Ministry of Finance, and two sets to ADB no later than six months after the end of the financial period to which the audit refers. 26. It is expected that the financial statements, prepared by the Project, will be ready for audits before the end of February and that the audit will be completed by the end of March. The auditor will plan and conduct audit fieldworks to ensure that the audit reports are completed within 8 weeks of upon commencement of the final audit.

27. The audit firm will retrieve confirmed ADB disbursements through the LFIS/GFIS database. No separate ADB Confirmation Letter in confirmed disbursements will be provided. MOF will provide the audit firm with access to LFIS/GFIS.

Attachment 4 1

OUTLINE QUARTERLY PROGRESS REPORT FORMAT

All information will be provided for quarter preceding issuance of report. Section A: Implementation Progress

1. General data on progress in implementation 2. Problems encountered and resolved 3. Other issues pending 4. Other information or data relevant for project 5. Safeguard compliance on projects 6. Updated implementation progress

Section B: Procurement Information

1. Detailed report on procurement activities a) Status of bidding documents b) Status of bids in progress c) Contracts awarded d) Contracts closed e) Contracts with issues

2. Procurement plan for next quarter and updated procurement plan spreadsheet Section C: Financial Information

1. Disbursement status 2. Special account status 3. Loan and Grant commitments 4. Contract payments 5. Status of audits 6. Other financial management issues

Section D: Other Information

1. Major/minor change in scope a) Cost escalations b) Revision in cost category c) Change in implementation procedures

2. Major activities planned for next quarter Attachment: PPR The quarterly report will be accompanied by an updated Project Performance Review (PPR) spreadsheet comprising (i) updated project implementation plan, (ii) contract awards and disbursement graphs and (ii) contract awards and disbursement plan.

Attachment 5 1

PROCUREMENT CAPACITY ASSESSMENT

1 INTRODUCTION 1. The project preparatory technical assistance (PPTA) team consultants, in consultation with the project stakeholders such as the Ministry of Public Works and Transport (MPWT), Provincial Department of Works and Transport (DPWTs) of Bolikhamxay and Khammouan provinces, and the Paksan and Thakhek Urban Development Administration Authority (UDAA), Municipal Offices, and other provincial departments, identified the infrastructures and facilities that will be included in the Fourth Greater Mekong Subregion Corridor Towns Development Project. The same project stakeholders are targeted to be the respondents for the Procurement Capacity Assessment as they are also the future project implementers.

2. A Procurement Risk Assessment at the project preparatory stage is mandatory for all Asian Development Bank (ADB) projects to identify risks and possible means to mitigate them ahead of the project implementation stages. The ADB’s Guide on Assessing Procurement Risk and Determining Project Procurement Classification states that the intent of procurement risk assessment is to:

(i) identify risks in country sector, agency or project systems and/or practices that could result in sub-optimal use of ADB resources;

(ii) define the severity of the risks; (iii) and develop a practical risk management plan with which to address those risks that

could adversely impact project implementation and/or achievement of project outcomes.

3. Procurement Risk Assessment is a tool used by ADB in assessing the country/sector/agency representatives’ readiness and capability to undertake the procurement process. The project procurement risk assessment aims to determine the overall procurement capability at the level of the executing agency and implementing agency and assess their capacity in completing the procurement process for this project. If found to be deficient, the assessment will also help establish appropriate review and supervision processes, including thresholds, for application during the project implementation.32

4. The current assessment was conducted using the pro-forma ADB questionnaire, which focused upon: (i) present organizational and staff capacity, (ii) information management processes adopted, (iii) procurement practices in place, and (iv) effectiveness and accountability measures used.

5. Completed questionnaires for the two project towns are shown in the Attachment.

6. The Project is envisioned to implement and construct wastewater treatment, solid waste management, drainage and flood mitigation infrastructure that apply to the two Lao PDR project towns, i.e. Paksan and Thakhek. Procurement Risk Assessment 7. Overview. The Lao PDR rating is ‘High’ in the preliminary risk ratings used by the ADB

32 Guide on Assessing Procurement Risks and Determining Project Procurement Classification-ADB, August 2014.

2 Attachment 5

countries benefitting from agency interventions.33 The high rating pertains to overall country assessment and this is due to persistent issues/weaknesses in the procurement framework,34 which often directly impede project implementation.

8. In accordance with the findings in the Risk Assessment and Risk Management Plan, the Government of Lao PDR through its Procurement Management Office under the Ministry of Finance, was tasked to oversight all procurement activities in all government agencies. This office has also issued a national procurement manual and standard bidding documents, and developed a procurement capacity-building program. Further the government also gave its commitment to procurement reforms to provide greater assurance of effective competition in public procurement and ensure value for money.

9. The answers given in the questionnaires and comments received in interviews with MPWT/DHU, provincial DPWTs, and UDAA procurement practitioners indicated similar results, i.e. that there is a common demand for regular training programs aimed at procurement—specifically on procurement for multilateral donor funded projects (e.g. ADB, WB, JICA, etc.). The perception is that training is needed to improve the procurement process at both the central, provincial and district levels of government.

10. Strengths. Lao PDR has an existing Procurement Decree by the Prime Minister on Government Procurement of Goods, Construction, Maintenance and Services, No. 03/PM dated January 2004. This Decree includes an Implementing Rules and Regulations (IRR) section dated March 2004, which was subsequently amended in May 2009. A Procurement Manual was also drafted in 2009 to reflect the amendments made to the IRR. The Decree, the IRR and the Procurement Manual cover all the steps, policy and principles of procurement. It is also drafted in line with the guidelines published by multilateral donors on procurement methods.

11. Competitive bidding is the procurement method employed in most of the government projects, although other methods of procurement can also be used as stipulated in the Procurement Decree.

12. Standard harmonized bidding documents have been drafted and are now being used in local/national competitive bidding in Lao PDR. The documents include a standard request for quotation (a method commonly used for ‘shopping’). These documents were finalized in 2015 and the MOF issued a directive entitled “Agreement On Adoption And Implementing The Standard Bidding Document For NCB Procurement of Goods, Works, Maintenance and Services (Harmonized Version, September 2015) By Minister of Finance” issued no. 3246/MOF dated September 28, 2015.

13. The other strengths identified as a result of the answered questionnaires are the following:

Information management. MPWT-DHU, DPWTs, provincial and district offices, and UDDAs have no de-centralized procurement information management system; each agency has their individual procurement filing system. Most of the records on procurement starting from the Invitation for Bids are kept together and stored for five to ten years.

Effectiveness. Contractual performance is monitored on a project basis and by the department concerned. The Finance Office and Budget Offices of each of the government

33 Preliminary Risk Ratings for ADB Countries with Operation. 34 Risk Assessment and Risk Management Plan (Summary) - Country Partnership Strategy: Lao PDR, 2012- 2016.

Attachment 5 3

agencies monitor contractual payment obligations and keep financial records.

14. Weaknesses. The assessment of the project procurement risk within the MPWT-DHU, Provincial DPWTs, Provincial and District Offices, and UDAAs shows that there are still gaps and deficiencies in several areas:

Organizational and staff capacity. The organizational and staff capacity is still considered weak as there is no established procurement unit within the MPWT-DHU, P-DPWTs and the other government agencies interviewed. A Procurement Committee (PC) is established on a need/project basis through a decree by the Minister. The same goes for the PC’s secretariat which is formed as an ad-hoc committee. Selection of procurement committee members is not primarily based on their qualifications/ experience on procurement but more on their position and involvement in a project. Also, most projects recruit a procurement specialist that assists the PC in all procurement activities.

As a result of non-permanency of procurement staff, there is lack of continuity in the performance of the procurement tasks. This also prevents staff from becoming fully proficient in procurement activities—a lack of regular training sessions and peer reviews further detracts from the staff capabilities and prevents them from acquiring the necessary procurement skills.

English language proficiency is another weakness noted amongst the procurement staff. The need for bi-lingual proficiency seems not to be high on the priority list of the staff interviewed, as government procurement is mainly conducted in the Lao language and on foreign-funded projects they are normally supported by international consultants.

Procurement practices. The P-DPWT’s, Provincial/District Offices and UDAAs have little experience in foreign-assisted projects however their involvement is limited to procurement of works and goods. None of the P-DPWTs, District Offices and UDAAs have any experience or have not had any involvement, in the hiring/recruitment of consultants and professional services. Recruitment/hiring of consultants and services are normally done at the central level under MPWT.

Accountability measures. The Procurement Decree, its IRR and the Procurement Manual have clauses on accountability measures for procurement for committee members to follow. It identifies sanctions to be brought on each breach of the provisions of the Procurement Decree. Most of the sanctions involve court proceedings and disciplinary measures provided under the civil service law and are usually based on the severity of the action done. However, the procurement staff do not have any experience in handling complaints—hence, a defined mechanism should be put in place.

15. Contractors’ capacity. Contractors’ capacity in the country was also looked into to determine if there are enough contractors that can be invited to join the bidding process or fair and open competition in bidding can be achieved. MPWT maintains a registry of contractors with a classification based on contractor’s contracting capacity; e.g. Class I for contract values of more than US$600,000, class II for contract values less than $600,000 but not less than $300,000, and class III for contract values less than $300,000.

16. There are ample numbers of contractors within the region and provinces in the identified project areas that can be invited to participate on a traditional/conventional way of contracting. Although these contractors may not have experience of bidding under ADB funded projects, this can be remedied by conducting contractor training/orientation on ADB procurement procedures and requirements. In this way a fair and open competition on project bidding will be assured.

4 Attachment 5

17. As some of the packages in this proposed project were originally planned to be procured through Design and Build (D&B), a market analysis was also conducted.35 Market analysis was conducted by asking other government agencies such as MOF if they have previous projects that have adopted the Design-Build-Operate (DBO) or D&B modality. Other procurement specialists were also approached and asked if they had experience procuring by DBO and/or D&B in their previous projects. Answers obtained were that D&B is rarely used and applied, and DBO was not yet applied as to their knowledge and experience. One notable project that was procured through Design and Build as found out is the Water Supply System program in Vientiane (Dong Makkai area). This contract package is financed by the Chinese government through a grant. The bidding process was done by them and was also contracted to a Chinese contractor. However, no other detailed data were gathered to supplement the information about the procurement procedure adopted. Procurement Risk Assessment Management Plan 18. The overall risk rating concluded from the results of the general procurement environment risk assessment and the project procurement risk assessment is “High”. The summary is presented in Table 1 and the Project Procurement Risk Assessment and Management Plan (P-RAMP) in Table 2. The assessment questionnaires are in the Attachment.

Table 1: Summary Ratings of Implementing Agency

Criteria Risk

A. Organization and Staff Capacity

High

B. Information Management High

C. Procurement Practices High

D. Effectiveness Moderate

E. Accountability Moderate

Overall Risk Rating High

Source: PPTA Consultant.

Table 2: Project Procurement Risk Assessment and Management Plan

Reference Number in the Questionnaire

Risk Impact Mitigation Measure and Risk Management Plan

A6, A7, A9, A16, A17, A23, C1, C2, C22, C23

Procurement department and/ or PMU have insufficient qualified staff to efficiently undertake the procurements required to implement project

High Establishment of at least a Procurement Unit which will act as a Secretariat (administrative support) to the Procurement Committee; Trainings on procurement rules of various multilateral donor vis a vis National Procurement Law; English proficiency requirement on staff involved in procurement.

A19-A20 The Agency uses practices inconsistent with national procurement law or bidding documents unsuitable for ADB-funded procurement

Moderate Ensure that the project uses the Harmonized Standard Bidding documents for NCB and follow ADB Procurement Guidelines when there is

35 However, during the wrap-up workshop of the Pre Fact-finding Mission in Vientiane on 10 April 2018, the Executing

Agency (Ministry of Public Works/Department of Housing and Housing/Project Coordination Unit) stated there was not sufficient experience or expertise to implement design and build contracts, and intend to only follow standard contract arrangement procedures.

Attachment 5 5

Reference Number in the Questionnaire

Risk Impact Mitigation Measure and Risk Management Plan

inconsistencies with the National Procurement Law

B2-B3 Record-keeping is inadequate to enable external audit of procurement processes

High When establishing of the Procurement Unit, provide basic facilities to this unit. Inter alia the facilities should include secured office, office furniture and equipment to enable this unit to be the custodian of all procurement documentation; Provide IT support on procurement documentation.

A25, C4-C12, C24-C44, C47, D5, E7

Agency does not promote non-discriminatory participation, transparent tender processes (including advertisement, tender documentation, tender evaluation, complaints mechanism)

High As the project is not complex, the use of post-qualification should be used. This would attract more bidders.

C15, E1-E6 The Agency has inadequate ethics and anticorruption measures in place

Moderate Submission of Declaration on Ethical Conduct and Fraud and Corruption by the procurement committee members when appointed as members; Ensure that the Statement on Ethical Conduct and Fraud and Corruption of Bidders are part of the submission in the Bidding Documents; Establishment of complaint mechanism, with specific procedures and subsequent actions.

Source: PPTA Consultant.

6 Attachment 5

ATTACHMENT : PROCUREMENT CAPACITY ASSESSMENT COMPLETED

QUESTIONNAIRES

1. MPWT/DHU

PROJECT PROCUREMENT RISK ASSESSMENT QUESTIONNAIRE

Question Ms. Malychanh SANANIKHOM

Project Coordination Unit for Urban Development Project/DHU

Project Coordinator forGMS4 Project/DHU

A. ORGANIZATIONAL AND STAFF CAPACITY

Procurement Department/Unit A.1 Does the agency or Government have a Procurement Committee that is independent from the head of the agency?

Yes, there is Yes

A.2 Does the agency have a procurement department/unit, including a permanent office that performs the function of a Secretariat of the Procurement Committee?

PCU will prepare all concerned document

BEC from difference Ministries, concerned Departments

A.3 If yes, what type of procurement does it undertake? NCB/ICB/Shopping and etc. NCB/ICB/Shopping and etc. A.4 How many years’ experience does the head of the procurement department/unit have in a direct procurement role?

More than 20 years More than 5 years

A.5 How many staff in the procurement department/unit are: full time part time iii. seconded

Full time staff, consultant, and part time staff

Full time staff, representative from various concerned Ministries and department and provinces.

A.6 Do the procurement staff have a high level of English language proficiency (verbal and written)?

Well understanding N.A

A.7 Are the number and qualifications of the staff sufficient to undertake the additional procurement that will be required under the proposed project?

Yes N.A

A.8 Does the unit have adequate facilities, such as PCs, internet connection, photocopy facilities, printers etc. to undertake the planned procurement?

Yes! But not enough equipment in case running new project

N.A

A.9 Does the agency have, or have ready access to, a procurement training program?

Already done N.A

A.10 At what level does the department/unit report (to the head of agency, deputy etc.)?

Depend on type of procurement. But mostly approve by MPWT Minister

N.A

A.11 Do the procurement positions in the agency have job descriptions, which outline specific roles, minimum technical requirements and career routes?

Yes N.A

A.12 Is there a procurement process manual for goods and works?

Yes Ye

A.13 If there is a manual, is it up to date and does it cover foreign-assisted projects?

Yes, especially Guideline no.0063/MOF Yes, especially Guideline no.003]Pm & 0063/MOF

A.14 Is there a procurement process manual for consulting services?

Yes Yes


Of course Yes

Procurement Unit A.16 Is there a fully (or almost fully) staffed PMU for this project currently in place?

Yes, 1 position Yes


No, need more qualified person Yes

Attachment 5 7





No, need more qualified person Yes

A.19 Are there standard documents in use, such as Standard Procurement Documents/Forms, and have they been approved for use on ADB funded projects?

Yes Yes

A.20 Does the agency follow the national procurement law, procurement processes, guidelines?

Yes Yes

A.21 Do ToRs for consulting services follow a standard format such as background, tasks, inputs, objectives and outputs?

Yes Yes

A.22 Who drafts the procurement specifications? Specific consultant or advisor By concerned committee A.23 Who approves the procurement specifications? Implement agency Implement agency A.24 Who in the PMU has experience in drafting bidding documents?

Procurement specialist Procurement specialist

A.25 Are records of the sale of bidding documents immediately available?

Implementing agency Implementing agency

A.26 Who identifies the need for consulting services requirements?

Implementing agency Consultant and task force committee

A.27 Who drafts the Terms of Reference (ToR) Concerned consultant and review by DHU

Implementing agency

A.28 Who prepares the request for proposals (RFPs) Concerned consultant and review by DHU

Implementing agency

B. INFORMATION MANAGEMENT B.1 Is there a referencing system for procurement files? Yes Yes B.2 Are there adequate resources allocated to record keeping infrastructure, which includes the record keeping system, space, equipment and personnel to administer the procurement records management functions within the agency?

Yes Yes

B.3 Does the agency adhere to a document retention policy (i.e. for what period are records kept)?

Minimum 5 years Minimum 10 years

B.4 Are copies of bids or proposals retained with the evaluation?

Yes Yes

Yes Yes

B.5 Are copies of the original advertisements retained with the pre- contract papers?

Yes Yes

B.6 Is there a single contract file with a copy of the contract and all subsequent contractual correspondence?

Yes Yes

B.7 Are copies of invoices included with the contract papers?

Yes Yes

B.8 Is the agency’s record keeping function supported by IT?

Yes Yes

C. PROCUREMENT PRACTICES Goods and Works C.1 Has the agency undertaken procurement of goods or works related to foreign assistance recently (last 12 months or last 36 months)? If yes, indicate the names of the development partner/s and project/s.

3 projects such as: (1)Pakse Urban Environment Development project,(2) GMS 1 & (3) GMS 2

GMS 1 & GMS2

C.2 If the answer is yes, what were the major challenges faced by the agency?

Yes, there is some. But we can solve it in the periods

No

C.3 Is there a systematic process to identify procurement requirements (for a period of one year or more)?

Yes Yes follow up the project planning & guideline

8 Attachment 5




C.4 Is there a minimum period for the preparation of bids and if yes, how long?

Yes! Depend on the bid document criteria

Yes, within 7 days

C.5 Are all queries from bidders replied to in writing? Yes Yes C.6 Does the bidding document state the date and time of bid opening?

Yes Yes

C.7 Are bids opened in public? Yes Yes C.8 Can late bids be accepted? Will be rejected Will be rejected C.9 Can bids (except late bids) be rejected at bid opening?

Will be rejected Will be rejected

C.10 Are minutes of the bid opening taken? Ye Yes C.11 Are bidders provided a copy of the minutes? Of course they will received it Yes C.12 Are the minutes provided free of charge? Free of charge Free of charge C.13 Who undertakes the evaluation of bids (individual(s), permanent committee, ad-hoc committee)?

Bid Evaluation Committee (BEC) Bid Evaluation Committee (BEC)

C.14 What are the qualifications of the evaluators with respect to procurement and the goods and/or works under evaluation?

Not mentioned, but depend on their position and experience in procurement process

Not mentioned, but depend on their position and assigned by Minister

C.15 Is the decision of the evaluators final or is the evaluation subject to additional approvals?

At least by Vice Minister of MPWT At least by Minister of MPWT

C.16 Using the three ‘worst-case’ examples in the last year, how long from the issuance of the invitation for bids can the contract be awarded?

Only Bid evaluation Report process takes more times before getting approval

No

C.17 Are there processes in place for the collection and clearance of cargo through ports of entry?

Yes Based on contract condition

C.18 Are there established goods receiving procedures?

Yes Yes

C.19 Are all goods that are received recorded as assets or inventory in a register?

Yes Yes

C.20 Is the agency/procurement department familiar with letters of credit?

Yes Yes

C.21 Does the procurement department register and track warranty and latent defects liability periods?

Yes Yes

Consulting Services

C.22 Has the agency undertaken foreign- assisted procurement of consulting services recently (last 12 months, or last 36 months)? (If yes, please indicate the names of the development partner/s and the Project/s.)

Yes Yes

C.23 If the above answer is yes, what were the major challenges?

Good C.V, but poor performance No

C.24 Are assignments and invitations for expressions of interest (EOIs) advertised?

Yes Yes

C.25 Is a consultants’ selection committee formed with appropriate individuals, and what is its composition (if any)?

Ministry of Finance (MOF), MPI, MPWT, concerned project owners

Conduct the bid procurement process and report to concerned authorities such as ADB

C.26 What criteria is used to evaluate EOIs? Based on mentioned in bid criteria Based on mentioned in bid criteria C.27 Historically, what is the most common method used (QCBS, QBS, etc.) to select consultants?

QCBS N.A

C.28 Do firms have to pay for the RFP document? No Yes C.29 Does the proposal evaluation criteria follow a pre-determined structure and is it detailed in the RFP?

Yes Yes

C.30 Are pre-proposal visits and meetings arranged? Yes Yes

Attachment 5 9




C.31 Are minutes prepared and circulated after pre-proposal meetings?

Yes Yes

C.32 To whom are the minutes distributed? BEC, bidders BEC, bidders C.33 Are all queries from consultants answered/addressed in writing?

Yes Yes

C.34 Are the technical and financial proposals required to be in separate envelopes and remain sealed until the technical evaluation is completed?

Yes Yes

C.35 Are proposal securities required? Yes, No C.36 Are technical proposals opened in public? In front of public In front of public C.37 Are minutes of the technical opening distributed? No Yes

C.39 Who determines the final technical ranking and how? Concerned technicians, BEC members and approval by Vince Minister of MPWT

Concerned technicians, BEC members

C.40 Are the technical scores sent to all firms? No N.A C.41 Are the financial proposal opened in public? Yes Yes C.42 Are minutes of the financial opening distributed? Distributed to BEC members only Yes

C.43 How is the financial evaluation completed? Reasonable lowest price bidder Based on BEC report

C.44 Are face to face contract negotiations held?

Yes Yes

C.45 How long after financial evaluation is negotiation held with the selected firm?

1 day Depend on bid criteria

C.46 What is the usual basis for negotiation? Bid criteria/condition mentioned Bid criteria/condition mentioned C.47 Are minutes of negotiation taken and signed? Yes Yes C.48 How long after negotiation is the contract signed, on average?

1 month Depend on bid criteria

C.49 Is there an evaluation system for measuring the outputs of consultants?

Yes Yes

Payments C.50 Are advance payments made? Yes Yes, 10% for ADB project C.51 What is the standard period for payment included in contracts?

45 days after bid opening date ADB’s Guideline

C.52 On average, how long is it between receiving a firm’s invoice and making payment?

45 days after received complete report and invoice

ADB’s Guideline

C.53 When late payment is made, are the beneficiaries paid interest?

No No

D. Effectiveness D.1 Is contractual performance systematically monitored and reported?

Yes Yes

D.2 Does the agency monitor and track its contractual payment obligations?

Yes Yes

D.3 Is a complaints resolution mechanism described in national procurement documents?

Yes Yes

D.4 Is there a formal non-judicial mechanism for dealing with complaints?

No No

D.5 Are procurement decisions and disputes supported by written narratives such as minutes of evaluation, minutes of negotiation, notices of default/withheld payment?

Yes Yes

E. Accountability Measures

10 Attachment 5




E.1 Is there a standard statement of ethics and are those involved in procurement required to formally commit to it?

Yes Yes

E.2 Are those involved with procurement required to declare any potential conflict of interest and remove themselves from the procurement process?

No No

E.3 Is the commencement of procurement dependent on external approvals (formal or de-facto) that are outside of the budgeting process?

No No

E.4 Who approves procurement transactions, and do they have procurement experience and qualifications?

Minister of MPWT Minister of MPWT

E.5 Which of the following actions require approvals outside the procurement unit or the evaluation committee, as the case may be, and who grants the approval?

a) Bidding document, invitation to pre-qualify or RFP

Implementing Agency Implementing Agency/BEC

a) Advertisement of an invitation for bids, pre-qualification or call for EOIs

Implementing Agency Implementing Agency/BEC

b) Evaluation reports Minister Minister c) Notice of award Implementing Agency Implementing Agency/BEC d) Invitation to consultants to negotiate Implementing Agency Implementing Agency/BEC e) Contracts Minister Minister

E.6 Is the same official responsible for: a) authorizing procurement

transactions, procurement invitations, documents, evaluations and contracts;

b) authorizing payments; c) recording procurement transactions

and events; and d) the custody of assets?

No, difference persons No, difference persons

E.7 Is there a written auditable trail of procurement decisions attributable to individuals and committees?

No No

Attachment 5 11

2. Paksan, Bolikhamxay Province


Question Bolikhamxay Province

A. Organizational and Staff Capacity PPWT

(6 persons) Provincial

(3 persons) District

(3 persons) UDDA

(3 persons) Procurement Department/Unit A.1 Does the agency or Government have a Procurement Committee that is independent from the head of the agency?

Yes! PPWT No No No


No Yes

No

Yes! But not independence

A.3 If yes, what type of procurement does it undertake?

Road & bridge construction & maintenance

Construction, Shopping, etc.

Government budget projects

Government budget projects

A.4 How many years’ experience does the head of the procurement department/unit have in a direct procurement role?

Approximately 15 years

Many years No 5 years


7 Full time

Full time staff No 4 full time staff


No No No Not good enough


Yes, but not good enough Yes No Yes


Yes! But not enough Yes No Yes, but not enough


Not yet

Yes No Yes, but not enough


Submitted report to provincial governor and then concerned ministry

Yes No Yes


Yes Yes Not mention Yes


Yes Yes No 0063/MOF


Procurement guideline no.003/PM.

Yes N.A Yes


Yes N.A No Yes


Procurement guideline no.003/PM.

N.A No Yes

Procurement Unit A.16 Is there a fully (or almost fully) staffed PMU for this Not assigned yet N.A No Yes

12 Attachment 5

Question Bolikhamxay Province project currently in place?


Yes, but not good enough N.A No Yes


Yes! But not enough N.A No Yes. But not enough


Yes N.A No Yes


Yes Yes No Yes


Yes N.A No Yes

A.22 Who drafts the procurement specifications?

Project owner, BEC and consultant

Implementing Agencies

BEC PPWT/DOF

A.23 Who approves the procurement specifications?

Governor, Minister Implementing Agencies

If yes! District governor

Project owner

A.24 Who in the PMU has experience in drafting bidding documents?

PPWT BEC Project owner Consultant


PPWT BEC/Project owner Project owner Project owner


Project owner/ PPWT N.A No Project owner

A.27 Who drafts the Terms of Reference (ToR) Project owner/ PPWT BEC/Project owner BEC/ Project

Owner Consultant

A.28 Who prepares the request for proposals (RFPs)

Project owner/ PPWT BEC/Project owner BEC/ Project Owner

Consultant

B. INFORMATION MANAGEMENT B.1 Is there a referencing system for procurement files?

Yes Yes Yes Yes

B.2 Are there adequate resources allocated to record keeping infrastructure, which includes the record keeping system, space, equipment and personnel to administer the procurement records management functions within the agency?

Yes Yes No Yes. But not enough


At least 5-10 years Yes (10 years) 10 years 10 years


Yes Yes Yes Yes


Yes N.A Yes Ye


Yes Yes N.A Yes


Yes Yes Yes Yes


Yes No Yes No

C. PROCUREMENT PRACTICES

Attachment 5 13

Question Bolikhamxay Province Goods and Works C.1 Has the agency undertaken procurement of goods or works related to foreign assistance recently (last 12 months or last 36 months)? If yes, indicate the names of the development partner/s and project/s.

No Yes.

No No


N.A N.A N.A N.A


Yes Yes N.A Yes


20 days 20 days N.A 3-6 months

C.5 Are all queries from bidders replied to in writing? Yes No Yes, in writing Yes C.6 Does the bidding document state the date and time of bid opening?

Yes Yes Yes Yes

C.7 Are bids opened in public? Yes No N.A Yes

C.8 Can late bids be accepted? No It will be reject No No

C.9 Can bids (except late bids) be rejected at bid opening?

Yes Yes Yes Yes

C.10 Are minutes of the bid opening taken? Yes Yes Yes Yes

C.11 Are bidders provided a copy of the minutes? Yes Yes Yes No

C.12 Are the minutes provided free of charge? For free For free Yes For free

C.13 Who undertakes the evaluation of bids (individual(s), permanent committee, ad-hoc committee)?

Bid evaluation Committee (BEC)

BEC, project owner Bid Evaluation Committee

Bid Evaluation Committee


Knowledge on bid evaluation process & experiences

Knowledge on bid evaluation & experiences

No Experience, qualified, knowledge on procurement


N.A Request more approval from higher levels

No Yes, in deed


Never N.A Never No


Yes N.A N.A Yes


Yes Yes Yes Yes


Yes Yes Yes Yes


Yes N.A N.A Yes


Yes Yes N.A Yes

Consulting Services


No Lao-LUX 21, 27, 30 No No

C.23 If the above answer is yes, what were the major challenges?

N.A Payment records N.A N.A


Yes Yes N.A Yes

C.25 Is a consultants’ selection committee formed with Yes, such as DPC, DOF, Planning, finance & No BEC members

14 Attachment 5

Question Bolikhamxay Province appropriate individuals, and what is its composition (if any)?

and Provincial government office.

related agencies

C.26 What criteria is used to evaluate EOIs? As guideline Bidding docs N.A N.A

C.27 Historically, what is the most common method used (QCBS, QBS, etc.) to select consultants?

QC N.A Never N.A

C.28 Do firms have to pay for the RFP document? Yes Yes Think so No

C.29 Does the proposal evaluation criteria follow a pre-determined structure and is it detailed in the RFP?

Yes Yes N.A Yes

C.30 Are pre-proposal visits and meetings arranged? Yes Yes Yes Yes


Yes Yes Yes Yes

C.32 To whom are the minutes distributed? Bidders and concerned BEC members

All bidders All participants All participants

C.33 Are all queries from consultants answered/addressed in writing?

Yes Yes N.A Yes


None No need N.A No

C.35 Are proposal securities required? No Yes Yes No

C.36 Are technical proposals opened in public? Yes Yes Yes Yes

C.37 Are minutes of the technical opening distributed?

Yes Yes Yes Yes

C.39 Who determines the final technical ranking and how?

BEC BEC members/ project owner/ technicians

BEC Project owner

C.40 Are the technical scores sent to all firms? Yes to all bidders Yes Yes No

C.41 Are the financial proposal opened in public? Yes No No No

C.42 Are minutes of the financial opening distributed? Yes All BECs BEC No

C.43 How is the financial evaluation completed? By BEC After checking

concerned documents

N.A All supported docs meet mentioned criteria


Depend on the mentioned conditions

Yes N.A Yes


1.5 to 2 months Depend on criteria No Within 1 month

C.46 What is the usual basis for negotiation? Depend on the mentioned conditions

Conditions/ regulation

Price Conditions Based on regulation, law

C.47 Are minutes of negotiation taken and signed? Yes Yes N.A Yes

C.48 How long after negotiation is the contract signed, on average?

3 month approximately Depend on criteria N.A 1 month


No Yes Yes N.A

Payments C.50 Are advance payments made? No No No Yes

C.51 What is the standard period for payment included in contracts?

Monthly inspection report, contract conditions

After completing goods delivery

After complete 100%

Yes


About 1-3 months N.A N.A Yes

C.53 When late payment is made, are the beneficiaries paid interest?

None No N.A Yes


Yes Yes N.A Yes

Attachment 5 15

Question Bolikhamxay Province D.2 Does the agency monitor and track its contractual payment obligations?

Yes Yes Yes Yes


Yes Yes Yes Yes


Yes Yes N.A Yes


Yes Yes Yes Yes

E. Accountability Measures E.1 Is there a standard statement of ethics and are those involved in procurement required to formally commit to it?

Yes Yes N.A Yes


Yes Yes N.A Yes


No Based on Budget allocation

Based on criteria Based on Budget allocation


Minister, Governor Head of implementing agencies

Head of implementing agencies

Project owner


b) Bidding document, invitation to pre-qualify or RFP

Yes N.A N.A N.A

f) Advertisement of an invitation for bids, pre-qualification or call for EOIs

Yes N.A Yes N.A

g) Evaluation reports Yes BEC/project owner N.A N.A h) Notice of award Yes BEC/ project owner Yes N.A i) Invitation to consultants to

negotiate Yes N.A N.A N.A

j) Contracts Yes BEC/ project owner N.A N.A

E.6 Is the same official responsible for: e) authorizing procurement

transactions, procurement invitations, documents, evaluations and contracts;

f) authorizing payments; g) recording procurement

transactions and events; and h) the custody of assets?

No

Project Owner

Project Owner

No


Yes Yes N.A Based on BEC agreement

DOF = Department of Finance; EOI = expression of interest; ICB = international competitive bidding; MPI = Ministry of Planning and Investment; N/A = not applicable; NCB = national competitive bidding; RFP = request for proposal

16 Attachment 5

Persons met/ Respondents:

Name Position Office/Agency

Mr. Vilasack SOUVANNAVONG Technician Road transportation Management Division/ PPWT

Ms. Sisouphanh PHETLAVONG Head of Division Provincial Department of Finance

Mr. Visay THEPVONGSA Deputy Head District Finance Office

Ms. Baython LAWWANXAY Deputy Project Coordinator LCG

Mr. Somphanh PHOMMA NC Procurement LCG

Ms.Marivic C.Bandril International Procurement PM Group- PPTA

Mr. Thonglith FONGSINOUAN DDG of PPWT PPWT

Mr. Thongphhone SAVANGTHAMMAVONG

Deputy Head of Planning Division

PPWT

Mr. Mathika VAYABOUTH Vice Chairman of UUDA UUDA

Mr. Bounmy PHENGSAVANH Deputy Head Cabinet Paksan District Administrative Office

Mr. Souliya MAOKHAMPHEAW Technician District Planning & Corporation Office

Mr. Khamprasong PHOKASOMBATH

Deputy Head Cabinet office PPWT

Ms. Silamphone SIPRASEUATH Technician PPWT

Mr. Mong FHONGSINOUAN Technician PPWT

Mr. Bouathip KHOUNNAVONG Technician PPWT

Ms. Fhongsamouth PHONGVICITH Head of Division Provincial Administrative Office

Attachment 5 17

3. Thakhek, Khammouan Province


Question Thakhek, Khammouan Province

A. Organizational and Staff Capacity PPWT

(4 persons) Provincial

(3 persons) District

(2 persons) UDDA\

(1 persons) Procurement Department/Unit A.1 Does the agency or Government have a Procurement Committee that is independent from the head of the agency?

Yes. (planning & Budget Div)

No No Yes


Yes. (planning & Budget Div)

Yes

No

Yes

A.3 If yes, what type of procurement does it undertake?

R&B construction & maintenance

Construction, Shopping, etc..

Mostly Shopping different types of procurements

A.4 How many years’ experience does the head of the procurement department/unit have in a direct procurement role?

Approximately 20 years

Minimum 3-5 years No N.A


Full time

Based on Assignment

No 5 fulltime committees


Well understanding No No No


Yes

Yes Yes Yes


Yes No, not enough equipment

No Yes, but not enough


Yes

Yes No Yes, but not

enough


Submitted to DG of PPWT and then concerned higher levels

Yes No Not enough


Yes Yes No Difference levels


Yes Yes Yes No


Procurement guideline no.03/PM. 0063/MoF

no.03/PM and 0063/MoF

Latest version 0063/MOF

N.A


Yes Yes Yes No


Procurement guideline no.03/PM. 0063/MoF

N.A Latest version 0063/MOF

No

Procurement Unit

18 Attachment 5

Question Thakhek, Khammouan Province A.16 Is there a fully (or almost fully) staffed PMU for this project currently in place?

Yes Yes No Yes


Yes Yes Yes Yes




Yes, based on the donner such as IDA/5/2004

Yes Yes Not yet apply


Yes Yes Yes Yes


Yes Yes Yes Follow the system

A.22 Who drafts the procurement specifications?

MPWT Implementing Agency

Ministry of Finance UDDA

A.23 Who approves the procurement specifications?

Minister, Governor Project Owner Project Owner Chairman

A.24 Who in the PMU has experience in drafting bidding documents?

Procurement Unit Project owner Project owner UDDA


Procurement Unit Project owner Project owner UDDA


Project owner Project Owner Project Owner UDDA

A.27 Who drafts the Terms of Reference (ToR) Project owner Project Owner

(Procure Unit) Project Owner UDDA

A.28 Who prepares the request for proposals (RFPs)

Project owner Procurement Unit Project Owner UDDA

B. INFORMATION MANAGEMENT B.1 Is there a referencing system for procurement files?

Yes Yes Yes Yes

B.2 Are there adequate resources allocated to record keeping infrastructure, which includes the record keeping system, space, equipment and personnel to administer the procurement records management functions within the agency?



At least 5years Yes 5 years Yes


Yes Yes Yes Yes


No Yes Yes Ye


Yes Yes Yes Yes


Yes Yes No Yes


Yes No Yes Yes

C. PROCUREMENT PRACTICES

Attachment 5 19

Question Thakhek, Khammouan Province Goods and Works C.1 Has the agency undertaken procurement of goods or works related to foreign assistance recently (last 12 months or last 36 months)? If yes, indicate the names of the development partner/s and project/s.

No KDP Project.

KDP Project. Medical equipment for Dispensary

No


Price of bid submitted are too much different

Lack of experience Procurement & implement process

No


Yes More than 1 year More than 1 year No


45 days 3 months 30 days No

C.5 Are all queries from bidders replied to in writing? Yes! Reply in writing Yes Yes, in writing No C.6 Does the bidding document state the date and time of bid opening?

Yes Yes Yes No

C.7 Are bids opened in public? Yes Yes Yes No

C.8 Can late bids be accepted? It will be reject It will be reject Depended on other

bidders accept or not?

No

C.9 Can bids (except late bids) be rejected at bid opening?

Yes Yes Yes No

C.10 Are minutes of the bid opening taken? Yes Yes Yes No

C.11 Are bidders provided a copy of the minutes? Yes Yes Yes No

C.12 Are the minutes provided free of charge? For free For free Yes No

C.13 Who undertakes the evaluation of bids (individual(s), permanent committee, ad-hoc committee)?

Bid evaluation Committee Bid Evaluation Committee

Bid Evaluation Committee

No


Knowledge on bid evaluation, transparency, etc

Yes Yes No


Yes, we need further approval

Request more approval from higher levels

Final Approval by Chairman of BEC

No


Never N.A 30 days after bid opening, 15 days informed bid winner, 25-30 days contract signing

No


None N.A No No


None N.A Yes No


None N.A Yes No


None N.A No No


None Yes Yes No

Consulting Services


None Yes, Khammouoan Development Project

Never No

20 Attachment 5

Question Thakhek, Khammouan Province C.23 If the above answer is yes, what were the major challenges?

None No None No


None Yes None No

C.25 Is a consultants’ selection committee formed with appropriate individuals, and what is its composition (if any)?

None Planning, finance & related agencies

None No

C.26 What criteria is used to evaluate EOIs? None Based on criteria

set None No

C.27 Historically, what is the most common method used (QCBS, QBS, etc.) to select consultants?

None N.A QC or QBS No

C.28 Do firms have to pay for the RFP document? None Yes Yes No

C.29 Does the proposal evaluation criteria follow a pre-determined structure and is it detailed in the RFP?

None Yes Yes No

C.30 Are pre-proposal visits and meetings arranged? None Yes Yes No


None Yes Yes No

C.32 To whom are the minutes distributed? None All Committee

members All participants No

C.33 Are all queries from consultants answered/addressed in writing?

None Yes Yes No


None Separated Separated No

C.35 Are proposal securities required? None Yes Yes, in some cases No

C.36 Are technical proposals opened in public? None No Yes No

C.37 Are minutes of the technical opening distributed?

None Yes Yes No

C.39 Who determines the final technical ranking and how?

None BEC members Chairman of BEC No

C.40 Are the technical scores sent to all firms? None Based on the

condition of bid document

No No

C.41 Are the financial proposal opened in public? None Yes Yes No

C.42 Are minutes of the financial opening distributed? None No No No

C.43 How is the financial evaluation completed? None Highest scores

given by BEC Agreement among BEC

No


None Yes Yes No


None 1 month Yes No

C.46 What is the usual basis for negotiation? None Conditions Conditions No

C.47 Are minutes of negotiation taken and signed? None Yes Yes N.A

C.48 How long after negotiation is the contract signed, on average?

None 15 days after issuing notice

15 days after issuing notice

N.A


None N.A None No

Payments C.50 Are advance payments made? No, for government budget N.A No No

C.51 What is the standard period for payment included in contracts?

Monthly inspection & payment

N.A After complete task 50% or 100%

No


About 30 days N.A 15 days No

Attachment 5 21

Question Thakhek, Khammouan Province C.53 When late payment is made, are the beneficiaries paid interest?

None N.A 15 days No


Yes Yes Yes Yes

D.2 Does the agency monitor and track its contractual payment obligations?

Yes Yes Yes Yes


No Yes Yes No


No N.A No No


Yes Yes No no

E. Accountability Measures E.1 Is there a standard statement of ethics and are those involved in procurement required to formally commit to it?

Yes Yes Yes Yes


No Yes Yes Yes


Yes, need more approval Yes Yes Yes, After budget approval


Minister, Governor Yes Yes UDDA


a) Bidding document, invitation to pre-qualify or RFP

Need further approval Yes N.A BEC

b) Advertisement of an invitation for bids, pre-qualification or call for EOIs

Need further approval Yes N.A BEC

c) Evaluation reports Need further approval Yes N.A BEC d) Notice of award Need further approval Yes N.A BEC Chairman e) Invitation to consultants to negotiate Need further approval Yes N.A BEC f) Contracts Need further approval Yes N.A BEC Chairman

E.6 Is the same official responsible for: a) authorizing procurement transactions,

procurement invitations, documents, evaluations and contracts;

b) authorizing payments; c) recording procurement transactions and

events; and d) the custody of assets?

Difference persons

Project Owner

N.A

No


No Yes Yes Yes

22 Attachment 5

Persons met/ Respondents:

Name Position Office/Agency

Mr. Khouanta DOUANGLATY DDG of PPWT PPWT

Mr. Chittavong KEOMANIVONG

Domestic Coordinator DHU/MPWT

Mr. Somphanh PHOMMA NC Procurement LCG

Ms.Marivic C.Bandril International Procurement PM Group- PPTA

Ms. Baython LAWWANXAY Deputy Project Coordinator LCG

Mr. Saisomvang LINTHASONE

Head of PDHU PPWT

Mr. Somxay SENGCHANMYXAY

Head of Division District Finance Office

Mr. Panthong CHOMMANIVONGKAO

Technician PPWT

Mr. Bounyoth SAYASOUK Deputy Head of Cabinet Office District Finance Office

Ms. Thisavanh ANOUVONG Head of Planning Division Provincial Planning Office

Mr. Hongthong MAISATTHAM

Head of Planning Division District Finance Office

Mr. douangmala BOUTCHALEARN

Vice Chairman of UUDA PUUDA

Mr. Sengphachan NAMAIMAVONE

Deputy Head of Planning Division PPWT

Ms. Saisamone SOMCHANH Finance Officer UUDA

Ms. Chanthavone THAMMAVONG

Technician Provincial Administrative Office

Mr. Keosongkham MONGKHAVA

Head of Finance Division PPWT

Mr. Khou SAYAVONG Head of Admin Office UUDA

Mr. Sackda KEOMANISAY Deputy Head District Administrative Office

Mr. Inthaphone MAOKHAMPHEAW

Head of Road Transportation Division PPWT