Project Administration Memorandum: Bangladesh, … · The project administration memorandum is an active document, ... Preparation of request for proposal and shortlisting in September

Project Administration Memorandum

The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes.

Project Number: 35049 Loan Number: 2375-BAN February 2009

Bangladesh: Padma Multipurpose Bridge Design Project

ABBREVIATIONS

ADB – Asian Development Bank BBA – Bangladesh Bridge Authority FIDIC – Fédération Internationale des Ingénieurs-conseils JICA – Japan International Cooperation Agency JBIC – Japan Bank for International Cooperation O&M – operation and maintenance PIU – project implementation unit POE – panel of experts PPP – public-private partnership TA – technical assistance

NOTE

In this report, “$” refers to US dollars.

This document was prepared by Hideaki Iwasaki (Senior Transport Specialist), SATC and Ma. Celina S. Cruz (Assistant Project Analyst), SATC

CONTENTS

Map i Loan Processing and Administration History ii Design and Monitoring Framework iii

I. PROJECT DESCRIPTION 1 A. Project Area and Location 1 B. Impact and Outcome 1 C. Outputs 1

II. COST ESTIMATES AND FINANCING PLAN 4 A. Original Cost Estimates 4 B. Financing Plan 5 C. Allocation of Loan Proceeds 5

III. IMPLEMENTATION ARRANGEMENTS 6 A. Executing and Implementing Agencies 6 B. Project Management Organization 6

IV. IMPLEMENTATION SCHEDULE 6 V. PROCUREMENT AND CONSULTANT RECRUITMENT 7 VI. DISBURSEMENT PROCEDURES 8

A. Disbursement Arrangements 8 B. Disbursement Plan 8

VII. PROJECT MONITORING AND EVALUATION 8 VIII. REPORTING REQUIREMENTS 8

A. Progress Reports 8 B. Annual Contract Awards and Disbursement Projections 9 C. Project Completion Report 9

IX. AUDITING REQUIREMENTS 9 X. MAJOR COVENANTS 9 XI. KEY PERSONS INVOLVED IN THE PROJECT 10

A. Executing Agency 10 B. Asian Development Bank 10

XII. ANTICORRUPTION 11

2

APPENDICES

1 Original Detailed Cost Estimates and Financing Plan 122 Structure of the Project Implementation Unit 143 Revised Implementation Schedule 154 Procurement Plan 165 Outline Terms of Reference for Panel of Experts 186 Disbursement Letter 207 Disbursement Sample Forms 278 Pro Forma of the Executing Agency's Project Progress Report 299 Annual Contract Awards and Disbursement Projections Form 34

10 Outline of Project Completion Report 3511 Loan Covenants 3712 List of ADB Reference Materials 42

ii

LOAN PROCESSING AND ADMINISTRATION HISTORY Chronology of Important Events

Activity Date(s) A. Processing of the Grant

1. Approval of PPTA 22 September 20052. Fact-finding Mission 24-28 June 20073. Management Review Meeting 20 July 20074. Appraisal Mission 5. Staff Review Committee Meeting 13 September 20076. Final Loan Negotiations 9 November 20077. RRP Board circulation 14 November 20078. Board Consideration and Loan Approval 5 December 20079. Signing of Loan Agreement 12 December 2007

10. Loan Effectiveness 26 August 2008B. Project Implementation

1. Loan Inception Mission 8-10 February 20092. Initial Disbursement to the Imprest Account 3. Loan Review Mission 4. Loan Review Mission 5. Loan Review Mission 6. Midterm Review Mission 7. Loan Review Mission 8. Loan Review Mission 9. Project Completion Review Mission

iii

DESIGN AND MONITORING FRAMEWORK

Design Summary

Performance Targets/Indicators

Data Sources/Reporting

Mechanisms

Assumptions and Risks

Impact Facilitated project preparation for an investment loan to construct the Padma bridge

Preparation of technically sound detailed design of the Padma bridge, river-training works, and the access roads Selection of a technically and financially qualified contractor for construction of the Padma bridge

Asian Development Bank’s (ADB) project performance audit reportADB’s review missions Project completion report

Assumption Political and security situation improves and is stable

Outcome Detailed design of the Padma bridge and other auxiliary works agreed by the Government and ADB

Submission of acceptable detailed design by June 2009

ADB review missions Project completion report

Assumption Government’s timely provision of counterpart funding

Outputs Scheme designs Technical studies Detailed design Tender action Environmental impact assessment Resettlement plan Land acquisition plan

Scheme design report by June 2008 Interpretative reports for technical studies (including additional studies) by October 2008 Detailed design reports and design certificates including the methodology and procedures for poverty impact assessment by June 2009 Tender documents by August 2009 Construction contract documentation by February 2010

ADB missions to monitor the implementation of the project Consultant’s progress report

Assumptions Restructuring of the Bangladesh Bridge Authority to strengthen the project implementation capacity Provision of capable counterpart staff from the Bangladesh Bridge Authority

Activities with Milestones Preparation of request for proposal and shortlisting in September 2007 * Issuance of request for proposal on 25 March 2008 * Evaluation of proposals by 28 July 2008 * Contract negotiation from October to December 2008 * Contract award by 29 January 2009 * Mobilization of consultants by March 2009 Detailed design and tender action for construction contracts by December 2010

Inputs ADB’s loan of $17.6 million Government’s financing of $4.4 million

* Actual dates.

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I. PROJECT DESCRIPTION

A. Project Area and Location

1. The Padma River separates the southwest zone from other parts of the country, especially the north-central zone, where the national capital of Dhaka is located. Although there have been improvements and developments of the road network of the southwest zone, links with the rest of the country across the Padma River are still by ferry only. The social, economic, and industrial underdevelopment of the southwest zone—which encompasses Bangladesh’s second major port, Mongla; its third main city, Khulna; and the inland port at Benapole—is due in part to difficult access across the Padma River to the rest of the country. A bridge across the Padma River will certainly strengthen links between the southwest and north-central zones. A highway bridge in particular will enhance freight and passenger transportation between Dhaka and major points in the southwest zone, thereby contributing substantially to the development of the southwest zone as well as to national economic growth. B. Impact and Outcome

2. The TA loan will facilitate project preparation for an investment loan to construct the Padma bridge connecting the economically depressed southwest zone to the economically more advanced eastern zone of the country. It will minimize technical uncertainty and ensure readiness to implement the follow-on loan project. The follow-on project will help the Government achieve poverty reduction through economic growth by improving transport efficiency and strengthening the integration of road networks. C. Outputs

3. The Project will develop detailed design of the Padma bridge, including river-training works and approach roads, and assist the Bangladesh Bridge Authority (BBA) (formerly Jamuna Multipurpose Bridge Authority) in engaging contractors, which will be carried out through the following four continual processes:

(i) scheme design, (ii) technical studies, (iii) detail design, and (iv) tender action.

1. Scheme Design

4. Notwithstanding previous feasibility studies, the Project will develop outline designs for different options for the main bridge, approach roads, and the river-training works to enable the options to be objectively compared with each other. Each option will be developed in sufficient detail to demonstrate that the project objectives and design criteria have been complied with, allow accurate estimation of construction costs, and enable a detailed construction program to be prepared. Then an objective method for comparing the options will be formulated to select the preferred scheme design. 5. In the process of scheme design, the Project will prepare comprehensive design criteria that achieve the objectives of the Project. The design criteria will:

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(i) include all rail-related elements including track and track-support systems regardless of whether or not the railway will be installed immediately following completion of the crossing;

(ii) include all aspects relating to the installation or future installation of utilities on the bridge; and

(iii) clearly state all assumptions regarding loads imposed on the bridge and the expected bridge movements so that the effects of these movements can be accounted for in the design of the utilities.

6. As part of scheme design, the following will be carried out:

(i) a comprehensive and detailed cost estimate will be prepared;

(ii) an economic and financial evaluation model will be developed comparable to those produced in the earlier feasibility studies to verify the economic and financial viability of the scheme designs;

(iii) a strategy will be developed for BBA to contract out operation and maintenance (O&M) including toll collection after construction; and

(iv) possibilities for public-private partnership (PPP) for either construction or O&M of the bridge will be looked into—for the former, through gap funding arrangements.

7. The outputs of this stage will include:

(i) confirmation of the scope of construction works;

(ii) a report on possibilities for PPP;

(iii) confirmation of conduction procurement strategy;

(iv) a final alignment;

(v) updated plans for land acquisition, resettlement, and environment management;

(vi) an environmental impact assessment and environment management plan for the Padma bridge and new resettlement sites;

(vii) design criteria;

(viii) a project cost estimate and cost sensitivity analysis;

(ix) technical specifications and contract documents for technical studies;

(x) an O&M strategy;

(xi) an economic and financial evaluation;

(xii) a scheme design report including scheme design drawings and performance specifications for proprietary elements and typical details; and

(xiii) photomontage or computer-generated images showing the proposed scheme.

2. Technical Studies 8. Technical studies prior to or during the detailed design phase will be needed to provide important information that will reduce uncertainty associated with technical and commercial aspects of the Project. The technical studies will include, but not limited to the following:

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(i) geotechnical investigations;

(ii) wind tunnel testing;

(iii) topographic surveying;

(iv) bathymetric surveying: and

(v) river flow, scour and hydrological studies, and physical modeling. 9. Once technical studies are completed, the technical, commercial, economic, and other implications of the results will be assessed. This will lead to the revision of the design criteria, updating of scheme designs, and updating of the project cost estimate as required to reflect the results of the studies. In addition, interpretative reports summarizing the engineering issues arising from the technical studies will be prepared, including geotechnical interpretative reports, aerodynamic stability reports, and any other reports required to assist with the timely and efficient progress of contractor engagement. 10. The outputs of this stage will include:

(i) interpretative reports for all technical studies; and

(ii) an assessment of implications on scheme design including, where relevant, changes to (a) design criteria, (b) the scheme design report, (c) the project cost estimate and cost sensitivity analysis, (d) the economic and financial evaluation, and (e) other relevant findings.

3. Detailed Design

11. The Project will prepare the detailed engineering design and all bidding documentation for all of the works based on the selected final scheme design using state-of-the-art techniques, methods, and standards to produce an efficient, robust, and buildable design that complies fully with the agreed design criteria in conformity with international codes and standards and, where relevant, published design and detailing guides. The detailed engineering design will show what assumptions have been made regarding the construction sequence and methods and, where relevant, assumptions regarding creep, shrinkage, and other time-dependent effects. The design and specifications will state the pre-cambers required or alternately specify requirements for the contractor to determine pre-cambers or casting curves. As part of detailed engineering design, illustrative designs, design specifications, and construction specifications will be prepared, on the basis of which the project cost estimate and the O&M cost estimate will be updated. 12. All contract documents for each construction contract will be prepared including materials and workmanship specifications, bills of quantities, instructions to bidders, and any further documentation required to complete the contract packages. The design will be accompanied by a comprehensive standalone materials and workmanship specification. The specification will utilize, wherever possible and appropriate, international codes or standards for supplying component materials, measuring, and testing. The specification will include tolerances that reflect assumptions made in the design. Conditions will be prepared for each contract based on an agreed standard form such as one published by (Federication Internationale des Ingenieurs-Conseils) FIDIC. 13. The outputs of this stage will include:

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(i) detailed engineering design drawings for all elements of the works sufficient to enable construction to progress,

(ii) materials and workmanship specifications,

(iii) final design criteria,

(iv) design reports,

(v) design certificates,

(vi) bills of quantities and schedules of activities,

(vii) contract conditions,

(viii) instructions to bidders,

(ix) all further bidding documents sufficient to permit competitive bidding to be sought in the international market,

(x) a project cost estimate and expenditure profile,

(xi) an O&M manual, and

(xii) estimates of future bridge O&M costs.

4. Procurement Action

14. The Project assists BBA with the prequalification procedure for each of the contracts, which includes preparing prequalification and selection criteria, assistance with advertising, reviewing and assessing submissions, interviewing, and preparing a prequalification report. The Project prepares, in advance, a bid evaluation strategy based on agreed technical and commercial criteria, and assists BBA in assessing all bids and making recommendations as to which contractor should be selected for each contract. 15. The outputs of this stage include:

(i) contractor prequalification and selection criteria;

(ii) comprehensive responses to all bidder queries;

(iii) a bid evaluation strategy;

(iv) a bid assessment report, where relevant, including (a) technical evaluation of construction proposals, (b) financial evaluation of commercial proposals, and (c) review of construction schedule and resource mobilization; and

(v) final contract documentation.

II. COST ESTIMATES AND FINANCING PLAN

A. Original Cost Estimates

16. The project investment cost was estimated at $22.0 million equivalent, including taxes and duties of $2.8 million. The detailed original cost estimates are in Appendix 1.

5

Table 1: Project Investment Plan ($ million)

Item Amountsa

A. Base Costb 1. Detailed Design Consultant 16.9 2. Independent Checking Engineer and Panel of Experts 3.1 3. Incremental Administrative Support 0.5 Subtotal (A) 20.5 B. Contingenciesc 1.3

C. Financing Charges During Implementation 0.2 Total (A+B+C) 22.0

a Includes taxes and duties of $2.8 million. b In mid-2007 prices. c Physical contingencies computed at 5% and price contingencies at 0.8% on foreign exchange costs and

local currency costs. Source: Asian Development Bank estimates.

B. Financing Plan

17. ADB provides a loan of SDR 11,179,000 from its Special Funds resources. The loan has a term of 32 years, including a grace period of 8 years and an interest charge of 1.0% per year during the grace period and 1.5% per annum thereafter. The Government will transfer the loan proceeds to the Executing Agency, BBA, through its fiscal budgetary allocation in the form of a government grant.

Table 2: Original Financing Plan ($ million)

Source Total % Asian Development Bank 17.6 80 Government 4.4 20

Total 22.0 100 Source: Asian Development Bank estimates. C. Allocation of Loan Proceeds

18. The allocation and withdrawal of loan proceeds on the basis of categories of expenses has been established in the loan agreement and is shown in Table 3. This allocation may be changed upon request of the Borrower or in certain cases may be initiated by ADB as necessary.

6

Table 3: Allocation and Withdrawal of Loan Proceeds

CATEGORY ADB FINANCING

Number

Item

Amount Allocated (SDR) Category

(US$)

Percentage and Basis for Withdrawal from the

Loan Account 1 Detailed Design Consultants 9,274,000 100% of total

expenditure* 2 Checking Engineer and

Panel of Experts 1,715,000 100% of total

expenditure* 3 Incremental Administrative

Support 63,000 20% of total expenditure*

4 Financing Charges during Implementation

127,000 100% of amount due

Total 11,179,000

* Exclusive of local taxes

III. IMPLEMENTATION ARRANGEMENTS

A. Executing and Implementing Agencies

19. BBA is the Executing Agency of the Project. A project implementation unit (PIU) was established under BBA. The PIU will (i) monitor the progress of day-to-day project implementation, (ii) provide assistance to the design consultant team in carrying out their tasks, (iii) act as a coordinator for checking engineers and the POE so that they can function properly, (iv) prepare withdrawal applications for design consultants, (v) prepare project progress and status reports as required, and (vi) maintain project accounts and loan financial records for auditing. B. Project Management Organization

20. The PIU is headed by the project director (chief engineer level) supported by a deputy project director, project engineers as required, a finance and accounting staffer, and an administrative staffer. The PIU is supported by two sets of independent monitoring arrangements. Checking engineers will be engaged and assigned outside of the PIU to independently review the design criteria, specifications, drawings, and other documents submitted by the design consultants and check the detailed design to ensure that it meets project objectives. The POE will be established—again outside of the PIU—to independently guide, monitor, and advise on the detailed design. 21. The structure of the project implementation unit is in Appendix 2.

IV. IMPLEMENTATION SCHEDULE

22. The ADB loan for the Project was approved by ADB Board on 5 December 2007, signed on 12 December 2007, and made effective on 26 August 2008. Advance contracting for the recruitment of the Design Consultant started in September 2007. The contract was signed on 27 January 2009. The Design Consultant will carry out its tasks over 2 years, from March 2009 to December 2010. Details of the revised implementation schedule are in Appendix 3.

7

V. PROCUREMENT AND CONSULTANT RECRUITMENT

23. Design Consultant (DC): An international consulting firm associated with national consulting firms will prepare scheme designs; conduct necessary technical studies; develop detailed engineering design and bidding documents for the main bridge, approach roads, and river-training works; and assist BBA in undertaking procurement actions including contractor prequalification, the preparation of selection criteria, bid evaluation, and final contract documentation. A consulting firm has been selected and appointed by the quality-based selection method using full technical proposals in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). 24. Panel of Experts (POE): A POE, consisting of internationally recognized experts in various specialties required by the Project, will be selected by BBA in consultation with the local donors’ group including ADB, World Bank, JBIC, and JICA. BBA will select such experts/consultants from a short list prepared by JMBA and approved by ADB. The composition of the POE is expected to include experts with skills in bridge and structural engineering, highway engineering, river training works, environment and resettlement impact assessment, and structured financing for concession arrangements. Recruitment will be carried out on an individual basis. The Borrower’s Public Procurement Regulations 2003 for selecting and engaging consultants may be used for selecting and engaging individual consultants for POE subject to the modifications set out in the procurement plan. The outline terms of reference for the POE are in Appendix 5. 25. Checking Engineers (CE): A firm of senior engineers will be recruited as the CE using the quality- and cost-based method. The terms of reference (TOR) of the CE will be developed by the DC, and will be reviewed and recommended by the POE to BBA. The scope of the CE’s check is expected to be limited to the main bridge but may also include the river training works and other civil engineering works forming part of the Project if agreed with the BBA. The CE will review and comment on:

(i) design drawings,

(ii) design statements or reports,

(iii) design criteria documents,

(iv) site survey and geotechnical investigation reports,

(v) materials and workmanship specifications,

(vi) wind tunnel test proposals and reports,

(vii) the scope and requirements of all technical studies and any special investigations proposed,

(viii) the construction method and erection sequence assumptions,

(ix) other reports relating to the design and construction, and

(x) the design program and project management information.

26. The original procurement plan is in Appendix 4.

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VI. DISBURSEMENT PROCEDURES

A. Disbursement Arrangements

27. Loan funds will be disbursed using direct payment procedure in accordance with ADB’s Loan Disbursement Handbook dated January 2007 as amended from time to time, and detailed arrangements agreed upon between the Government and ADB. Withdrawal of Loan proceeds is described in ADB’s disbursement letter in Appendix 6. 28. Withdrawal applications to be submitted to ADB must be the signed original copy to the attention of Mr. Francis Mathew, Financial Control Specialist, CTLA-1 and copied to Mr. Kazuhiko Higuchi, Director, SATC. However, supporting documents may be in photocopies and the originals to be kept for audit purposes. 29. The summarized disbursement procedures are shown in ADB's Loan Disbursement Handbook. Sample forms are presented in Appendix 7. The handbook and the reports are available electronically in the Loan Financial Information Services Web System (LFIS) (http:lfis.adb.org). To obtain access to the LFIS web access must be filled out and submitted to ADB. B. Disbursement Plan

30. Based on the revised implementation schedule, the disbursement plan is projected as follows:

$ Million Contract Award Disbursement Allocated in Loan 17.6 17.6 Year 2009 17.6 6.0 Year 2010 - 11.6

VII. PROJECT MONITORING AND EVALUATION

31. ADB shall conduct periodic reviews and a midterm review in March 2010 to review the progress of the Project and undertake any necessary midcourse corrections. In addition, ADB shall conduct special reviews as appropriate. The Borrower shall give all possible assistance for carrying out such reviews.

VIII. REPORTING REQUIREMENTS

A. Progress Reports

32. Monthly Progress Report. This report should be a brief, comprehensive report summarizing all items in the Quarterly Report in not more than 10 pages. The monthly report should focus on progress of major implementation activities and/or problems, including the status of land acquisition and resettlement. A Progress Summary Sheet for the reporting months must be included. The monthly reports should be received by ADB within 15 days from the end of each month.

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33. Quarterly Progress Reports. Without limiting the generality of the foregoing, BBA shall furnish to ADB quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter. BBA will submit the quarterly progress report to ADB within 45 days from the close of each quarter. A Proforma of the Project Progress Report is in Appendix 8. B. Annual Contract Awards and Disbursement Projections

34. The EA will submit to ADB annual contract awards and disbursement projections in order to monitor project implementation and to help identify impediments to implementation progress. The projection is submitted to ADB on 15 December of each year. The form is in Appendix 9. C. Project Completion Report

35. Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as ADB may agree for this purpose, BBA shall prepare and furnish to ADB a project completion report on the execution and initial operation of the Project, including its cost, the performance by BBA of its obligations under the Loan Agreement to the extent they are applicable to BBA, the Project Agreement and the accomplishment of the purposes of the TA Loan. The outline of the report is in Appendix 10.

IX. AUDITING REQUIREMENTS

36. BBA will maintain (i) separate accounts for the Project and for its overall operations; (ii) have such accounts and related financial statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any event not later than six (6) months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan proceeds and compliance with the financial covenants of the Loan Agreement), all in the English language. BBA shall furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request. The first audited reports should be submitted to ADB by 30 December 2009.

X. MAJOR COVENANTS

37. The major loan covenants, as well as the other assurances, which have been agreed with the Government, the Executing Agency, and ADB to be complied with are in Appendix 11.

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XI. KEY PERSONS INVOLVED IN THE PROJECT

A. Executing Agency

Bangladesh Bridge Authority/Bridges Division, Ministry of Communications Setu Bhaban New Airport Road, Dhaka 1212, Bangladesh

NAME POSITION AGENCY CONTACT DETAILS Mr. C.Q.K. Mustaq Ahmed

Executive Director/ Secretary

BBA/Bridges Division

Tel. No. Fax No. +88 02 815 6018 E-mail:

Mr. Md. Rafiqul Islam

Chief Engineer/Project Director

BBA Tel. No. +88 02 988 8969 Fax No. +88 02 988 8969 E-mail: [email protected]

Mr. A. K. M. Yahea Chowdhury

Director (Finance & Accounts)

BBA Tel. No. Fax No. E-mail:

Mr. Md. Wasim Jabber

Additional Director (Administration & Resettlement)


Mr. Md Alaudin Additional Director (P&M and Environment)


Mr. Yunus Ali Deputy Director (Accounts, Budget & Audit and Land Acquisition)


Mr. Quazi Md. Ferdous

Deputy Director (River Training)/ Executive Engineer (Environment)

BBA Tel. No. +88 02 886 1249 Fax No. +88 02 989 3563 E-mail: [email protected]

Mr. Sharful Islam Assistant Engineer/ Assistant Director (Environment)


Mr. Syed Rajab Ali Assistant Engineer/Assistant Director (Resettlement)

BBA Tel. No. Fax No. +88 02 989 3563 E-mail: [email protected]

B. Asian Development Bank

Asian Development Bank 6 ADB Ave. Mandaluyong City 1550 Metro Manila, Philippines

NAME POSITION DIVISION CONTACT DETAILS Mr. Kazuhiko Higuchi

Director Transport & Communications

Tel. No. +63 2 632 6806 Fax No. +63 2 636 2340 E-mail: [email protected]

Ms. Sri Widowati Head, Project Administration Unit

Transport & Communications


11

Mr. Hideaki Iwasaki

Senior Transport Specialist



Mr. Dong-Kyu Lee Transport Specialist



Ms. Maria Celina Cruz

Assistant Project Analyst



Ms. Caroline Vandenabeele

Senior Counsel Office of the General Counsel


Mr. Francis Mathew

Financial Control Specialist

Controllers Department


Mr. Paul Heytens Country Director Bangladesh Resident Mission

Tel. No. + 880 2 815 6000 to 16 Fax No. + 880 2 815 6018 19 E-mail: [email protected]

Mr. Witoon Tawisook

Transport Specialist

Bangladesh Resident Mission

Tel. No. + 880 2 815 6000 ext 227 Fax No. + 880 2 815 6018 19 E-mail: [email protected]

Mr. Md. Abdul Ahad

Senior Control Officer



Mr. Syed Alauddin Assistant Disbursement Analyst



XII. ANTICORRUPTION

38. ADB defines corruption as “abuse of public or private office for personal gain”. ADB will systematically identify, in consultation with its member countries opportunities for reducing corruption as part of its broader emphasis on improving good governance and sound development management. ADB’s Anticorruption Policy has set the guidelines and procedures in addressing fraudulent corrupt practices. Anyone coming across evidence of fraud or corruption associated with the Investment Program must contact ADB’s Office of the General Auditor, who will investigate such allegations. 39. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed with the Government and BBA. Consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Project. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the loan and grant regulations and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of BBA and consultants and other service providers as they relate to the Project. The Government will also allow and assist ADB representatives in carrying out random spot checks of the work in progress and the use of funds for the Project.

12 Appendix 1

ORIGINAL DETAILED COST ESTIMATES

Table A1.1: Detailed Cost Estimates by Expenditure Categorya

Tk Million $ Million Item Foreign Local Total Foreign Local Total

% Base Cost

A. Base Costb 1. Detailed Design Consultant 814 334 1,147 12.0 4.9 16.9 81.9 2. Independent Checking Engineer and Panel of Experts

167 52 219 2.5 0.8 3.2 15.7

3. Incremental Administrative Support 0 34 34 0.0 0.5 0.5 2.4 Subtotal (A) 981 420 1,401 14.4 6.2 20.6 100.0 B. Contingenciesc 1. Physical 48 20 68 0.7 0.3 1.0 4.9 2. Price 10 4 14 0.1 0.1 0.2 1.0 Subtotal (B) 57 24 82 0.8 0.4 1.2 5.8 C. Financing Charges During Implementation 14 0 14 0.2 0 0 1.0 Total

1,052

444

1,496

15.5

6.5

22.0

106.8

a Includes taxes and duties of $2.8 million. b In 2007 prices. c Physical contingencies computed at 5% and price contingencies at 0.8% on foreign exchange costs and local currency costs. Source: Asian Development Bank estimates.

Table A1.2: Original Detailed Cost Estimates by Financier

($ million)

ADB Government Item Cost $ % of Cost

Category $ % of Cost

Category A. Base Cost 1. Detailed Design Consultant 16.9 14.6 86 2.3 14 2. Independent Checking Engineer and Panel of Experts

3.2 2.7 84 0.5 16

3. Incremental Administrative Support 0.5 0.1 20 0.4 80 Subtotal (A) 20.6 17.4 84 3.2 16 B. Contingencies 1. Physical 1.0 0.0 0 1.0 100 2. Price 0.2 0.0 0 0.2 100 Subtotal (B) 1.2 0.0 0 1.2 100 C. Financing Charges During Implementation 0.2 0.2 100 0.0 0 Total

22.0

17.6

80

4.4

20

ADB = Asian Development Bank. Source: Asian Development Bank estimates.

14 Appendix 2

PROJECT IMPLEMENTATION UNIT

ADB = Asian Development Bank, BBA = Bangladesh Bridge Authority. Source: ADB.

Project Director

Deputy Project Director

AccountingEngineer

ADBBBA Development Partners

AdministrationEngineer

Appendix 3

15

REVISED IMPLEMENTATION SCHEDULE * (Design and Tender Activities)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

C1 C2 C3

P1 P2 P3 P4 1. Check of Outputs of DC and CE

2011

Checking Engineer (CE)

2009

1. Check of DC's outputs

Panel of Expert (POE)

2010Activity

Design Consultant (DC)

2. Additional Study

3. Detail Design

Design Consultant Selection

1. Scheme Design

4. Tender Action

2. Milestone

* To be reviewed in Consultant's Inception Report. CE= Checking Engineer, DC = Design Consultant. C1: (i) Completion of scheme design check, (ii) completion of detail design criteria check, and (iii) identification of additional study. C2: (i) Completion of result of additional study, and (ii) completion of updated detail design criteria check. C3: (i) Completion of detail design check and (ii) completion of prequalification and selection criteria check. P1: (i) Check scheme design criteria, (ii) check terms of reference for CE, and (iii) evaluation shortlist of CE. P2: Check outputs of DC and CE. P3: Check outputs of DC and CE. P4: Check outputs of DC and CE. Source: Asian Development Bank estimates.

16 Appendix 4

PROCUREMENT PLAN

Table A4.1: General Information

Project Information Country People’s Republic of Bangladesh Name of Borrower People’s Republic of Bangladesh Project Name Padma Multipurpose Bridge Design Project Loan or Technical Assistance Reference Date of Effectiveness Amount $17.6 million Of which Committed, $ Executing Agency: Bangladesh Bridge Authority Approval Date of Original Procurement Plan Approval of Most Recent Procurement Plan Publication for Local Advertisementsa July 2007 Period Covered by this Plan July 2007–March 2010

Table A4.2: Procurement Thresholds, Goods and Related Services, Works and Supply and Installation

Procurement Method To be used above (Value $): International Competitive Bidding Works $1 million Shopping Below $100,000 National Competitive Bidding Works $ 100,000 National Competitive Bidding Goods $ 100,000 Exceptional Methods Direct Contracting

Certain minor equipment such as office equipment and computers estimated to cost, in the aggregate, the equivalent of $10,000 may be procured through direct purchase.

Table A4.3: Procurement Thresholds, Consultants Services

Procurement Method To be used (Value $): Quality- and Cost-Based Selection Above $200,000 Consultants Qualifications Selection Below $200,000 Least-Cost Selection Below $100,000 Exceptional Methods Selection of an Individual Consultant Individual consultants will be employed by

BBA for project management.

a General procurement notice, invitations to prequalify and to bid, calls for expressions of interest.

Appendix 4 17

Table A4.4: List of Contract Packages in Excess of $100,000, Goods, Works, and Consulting Services

Ref

Contract

Description

Estimated Cost

($ million)

Procurement

Method

Expected Date of

Advertisement

Prior Review

(Y/N)

Comments

Consulting Services

ICB 1

Detailed design

14.6

QBS

ADBBO in July

2007

Y

RFP and shortlist

Technical evaluation

report

Final evaluation

report

ICB2 Checking engineer

1.8 QCBS ADBBO in May 2008

Y RFP and shortlist

Technical evaluation

report

Final evaluation

report

Panel of experts 0.9 Individual

ADBBO = Asian Development Bank Business Opportunities, ICB = international competitive bidding, QBS = quality-based selection, QCBS = quality- and cost-based selection, RFP = request for proposal, Y/N = yes or no. Source: Asian Development Bank estimates.

Appendix 5

18

OUTLINE TERMS OF REFERENCE FOR PANEL OF EXPERTS A. Introduction 1. The panel of experts (POE) should consist of internationally renowned and respected individual engineers who are widely acknowledged to be experts in their field. The members of the POE should possess among them acknowledged expertise and experience in at least the following disciplines and skills: (i) design, construction, and maintenance of bridges over water with spans greater than 100 meters; (ii) design, construction, and maintenance of river-training works of a similar scale and importance to this Project; (iii) design and construction of deep piled foundations in soft river deposits, including knowledge of the effects of scour and the prediction of pile group flexibility; (iv) seismic design of bridges and structure with specific knowledge of the seismicity of the region; and (iv) specific knowledge of the behavior and environment of the Padma River and the surrounding areas. It is possible that some of the members of the POE may possess expertise and experience in more than one of these areas. It is to be expected that the POE should include some members of the earlier POE for the Jamuna bridge project, since their experience there would be helpful in this case. 2. The POE should consist of not fewer than five and not more than eight individuals including the chair. It is expected that the POE will include some experts resident in Bangladesh and familiar with the procedures and systems for design and construction in Bangladesh, as well as other experts drawn from around the world. Ideally, the numbers of Bangladeshi and International experts should be approximately balanced. B. Scope of Works 3. The POE is required to provide expert advice in connection with the project as required from time to time by BBA, and to carry out periodic reviews of the procedures followed and the results produced by the design consultant, checking engineers, and construction contractors throughout the Project. 4. The POE shall organize itself under the leadership and guidance of its chair so that any comments, suggestions, or advice from any of its members are assembled, reviewed, and agreed upon by all its members and submitted to BBA as comments, suggestions, or advice from the POE as a whole. 5. During phase 1, the members of the POE will each receive from BBA copies of monthly progress reports and selected other reports prepared by the design consultant and checking engineers. Any comments and observations on these reports made by the individual members of the POE as a result of their review shall be assembled by the chairman and submitted to BBA within 21 days of receipt. 6. Similarly, during phase 2, the members of the POE will each receive from BBA copies of monthly reports of progress on the construction works and selected other reports. Any comments and observations on these reports shall be assembled by the chair and submitted to BBA within 21 days of receipt, as in phase 1. 7. Every 3 months or so throughout the Project, the POE shall assemble in Bangladesh for a mission to review and comment on the progress of the work. Each mission is expected to last approximately 1 week and should include meetings with BBA, the design consultant, the contractors (during phase 2) and other key organizations to discuss matters of importance at

Appendix 5

19

that time. During phase 2, these missions shall include a visit to the site to inspect the works and enquire about progress, quality control, materials and workmanship standards, etc. 8. At the end of each mission, the POE shall submit a report to BBA making any observations, comments, or suggestions that the members of the POE collectively consider should be made, and collating together any interim comments that have been made by the POE members during the previous 3-month period. 9. On some occasions, BBA may request one or more members of the POE to visit an off-site manufacturing, fabrication, or testing facility to conduct an inspection and provide a written report. This may either coincide with a normal 3-monthly mission to Bangladesh or require an additional visit. 10. In addition, the POE is expected to respond to any specific queries on particular technical issues on which BBA may require independent expert advice during the course of the project. Such queries will be put to the POE through the chair, and the response will be provided through the chair. 11. In the event that any disagreement arises between the design consultants and the checking engineer regarding a matter relating to the acceptability or suitability of the design, the design criteria or any other matter that cannot easily be resolved between them, the POE may be asked by BBA to review the issues in question and provide an independent opinion on the matter to help the design consultant and checking consultant reach agreement.

Appendix 6

20

DISBURSEMENT LETTER

Appendix 6

21

Appendix 6

22

Appendix 6

23

Appendix 6

24

Appendix 6

25

Appendix 6

26

Appendix 7

27

DISBURSEMENT SAMPLE FORMS

28 Appendix 7

SUMMARY SHEET FOR DIRECT PAYMENT/REIMBURSEMENT/REPLENISHMENT/LIQUIDATION

Mark appropriate Direct Payment (ADB-DRP-SS) Reimbursement (ADB-RMP-SS) Replenishment/Liquidation (ADB-IFP-SS)box: (ADB-Direct Payment Procedure-Summary Sheet) (ADB-Reimbursement Procedure-Summary Sheet) (ADB-Imprest Fund Procedure-Summary Sheet)

Summary Sheet No.: Date: ADB Loan No.:

No. & Title of Category/Sub-category: Application No.:

Item Name and Amount Paid/ Nature of Contract/ Invoice/ Receipt Bill of

No. Address of Supplier Payment (Due) Payable Payment Made a PO b Lading Certificate c

Total Amount Paid/Payable

% of ADB FinancingAmount Requested for Withdrawal d

Date ofPCSS

No.

No. & Date of

Contract/PO

Description of Goods

and Services Claim

Supporting Documents Attached(please mark with an X)

Appendix 8

29

PRO FORMA OF THE EXECUTING AGENCY’S PROJECT PROGRESS REPORT A. Introduction and Basic Data Provide the following:

• ADB loan number, project title, borrower, executing agency(ies), implementing agency(ies);

• total estimated project cost and financing plan; • status of project financing including availability of counterpart funds and

cofinancing; • dates of approval, signing, and effectiveness of ADB loan; • original and revised (if applicable) ADB loan closing date and elapsed loan period

based on original and revised (if applicable) loan closing dates; and • date of last ADB review mission.

B. Utilization of Funds (ADB Loan, Cofinancing, and Counterpart Funds) Provide the following:

• cumulative contract awards financed by the ADB loan, cofinancing, and counterpart funds (commitment of funds to date), and comparison with time-bound projections (targets);

• cumulative disbursements from the ADB loan, cofinancing, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets); and

• reestimated costs to completion, need for reallocation within ADB loan categories, and whether an overall project cost overrun is likely.

C. Project Purpose Provide the following:

• status of project scope/implementation arrangements compared with those in the report and recommendation of the President (RRP), and whether major changes have occurred or will need to be made;

• an assessment of the likelihood that the immediate development objectives (project purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements;

• an assessment of changes to the key assumptions and risks that affect attainment of the development objectives; and

• other project developments, including monitoring and reporting on environmental and social requirements that might adversely affect the project's viability or accomplishment of immediate objectives.

D. Implementation Progress Provide the following:

• assessment of project implementation arrangements such as establishment, staffing, and funding of the PMO;

30 Appendix 8

• information relating to other aspects of the EA’s internal operations that may impact on the implementation arrangements or project progress;

• progress or achievements in implementation since the last progress report; • assessment of the progress of each project component, such as,

- recruitment of consultants and their performance; - procurement of goods and works (from preparation of detailed designs and

bidding documents to contract awards); and - the performance of suppliers, manufacturers, and contractors for goods and

works contracts; • assessment of progress in implementing the overall project to date in comparison

with the original implementation schedule—quantifiable and monitorable target, (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure, S-curve graph showing the relationship between physical and financial performance, and actual progress in comparison with the original schedules and budgets (examples are shown in framework and guidelines in calculating the project progress); and

• an assessment of the validity of key assumptions and risks in achieving the quantifiable implementation targets.

E. Compliance with Covenants Provide the following:

• the borrower's compliance with policy loan covenants such as sector reform initiatives and EA reforms, and the reasons for any noncompliance or delay in compliance;

• the borrower’s and EA’s compliance with financial loan covenants including the EA’s financial management, and the provision of audited project accounts or audited agency financial statements; and

• the borrower’s and EA’s compliance with project-specific loan covenants associated with implementation, environment, and social dimensions.

F. Major Project Issues and Problems Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds).

Appendix 8

31

Framework and Guidelines in Calculating Project Progress A. Introduction 1. To ensure that all implementation activities are reflected in measuring implementation progress against the project implementation schedule, the term "physical completion” in the PPR has been changed to "project progress.” 2. Physical and precommencement activities are considered in calculating project implementation progress. These activities, which may include recruitment of consultants, capacity building, detailed design, preparation of bid and prequalification documents, etc., could constitute a significant proportion of overall implementation and therefore should be counted. 3. Each activity in the implementation schedule will be weighted according to its overall contribution (using time as a reference) to progress of project implementation. These weights will then be used to calculate the percentage of project progress along the entire time span of the project. This is to provide a holistic view of the pace of implementation. B. Framework for Compiling Activity List and Assigning Weights 4. As implementation activities and their corresponding weights will vary according to the type of project, sector, and country, sector divisions or RMs will be responsible for determining and including them in the project administration memorandum. The actual project implementation progress of these activities should be reported regularly through the EA’s quarterly project progress report. To ensure ADB-wide consistency, the following framework has been established; its application will be monitored through the PPR. a. Compilation of Activity List 5. Sector divisions or RMs concerned should identify major implementation activities and include them in the implementation schedule, which is attached as an appendix in the report and recommendation of the President (RRP). The implementation schedule should follow the critical path of the project’s major activities in project implementation taking account of various country, sector, and project constraints. b. Assignment of Weights 6. Corresponding weights for each activity should be assigned to ensure that “project progress" measures the percentage of achievement (nonfinancial except when the project has credit components) for all events during the entire duration of the implementation schedule. To avoid disproportionate assignment of weights, to the extent possible these should be evenly distributed along the implementation schedule. When activities are concurrent, avoid “double counting.” c. Computation of Project Progress 7. Once all activities are identified and corresponding weights assigned, project progress should be calculated using the following steps:

(i) Determine the actual percentage progress (nonfinancial) of each activity.

32 Appendix 8

(ii) Multiply these percentages by the assigned weight of each activity to arrive at the weighted progress.

(iii) Add up the resulting weighted progress of all activities to determine the project progress.

Page 3 of this Appendix provides an illustration of this calculation using a generic sample implementation schedule and this Appendix, page 4 a specific example in the education sector.

Implementation Schedule with Activities and Weights

Yr1 Yr2 Yr3 Yr4 Yr5

A

a

B

b

Cd

c

De f

E

A C

T I

V I T

I E

S

1. Sum of all weights should equal 100 percent (a+b+c+d+e+f+g = 100%)2. When calculating the percentage of “project progress,” all completed activities should be counted as accomplished, regardless of when they

were scheduled to be completed. For example, when calculating the percentage of “project progress” after year 3, if activity D is completed inyear 3 rather than in year 2, it should still be included in the computation.

3. Total weight of each activity is as follows: Activity A–a; Activity B–b; Activity C–c; Activity D–d; and Activity E–e + f +g4. Project progress of a project is the summation of the actual percentage of progress for each activity multiplied by the total weight of each

activity.

Appendix 8 33

Sample Implementation Schedule

Activities Year 1 Year 2 Year 3 Year 4(a)

AssignedWeight

(b)Actual

Progress

(a) x (b)WeightedProgress

Establish PIU 5% 100% 6%

Establish Accreditation Board, etc. 5% 0% 0%

Appoint Staff and Budget 4% 75% 3%

Adopt Architecture Plans 2% 100% 2%

Shortlist Consulting Firms 6% 100% 6%

Prepare Fellowship Program 6% 76% 4%

Prepare Civil Works Tendering 30% 0% 0%

Civil Works: Classrooms, Dorms, etc. 6% 0% 0%

Procurement of Furniture and Equipment 16% 10% 2%

Field Work of Consultants 7% 0% 0%

Provide Fellowships 6% 0% 0%

Conduct Study Tours 6% 0% 0%

Provide Curriculum Standards 6% 0% 0%Total Weight 100%

Imp. Progress 24%

(a) Assigned weight for each activity(b) Actual progress of each activity(a) x (b) weighted progress for each activityProject progress = sum of all weighted progress for each activity

34 Appendix 9

Appendix 10

35

OUTLINE OF PROJECT COMPLETION REPORT

Suggested Topics for Project Completion Reports to be Prepared by Borrower

I. PROJECT DESCRIPTION A. Objectives B. Components (or subprojects for sector and multiprojects) C. Implementation methods D. Description and justification of changes in components (or subproject appraisal criteria)

or implementation methods

II. PROJECT IMPLEMENTATION A. Compare original and actual implementation schedules. Indicate delays, length and causes of delays, and remedial action taken. B. Compare cost estimates made during appraisal and actual costs (foreign and local). Local currency costs incurred, appropriate exchange rates for their conversion into US dollars, and the foreign exchange costs financed by cofinanciers must be compiled correctly with reference to audited project accounts. Indicate factors that contributed to any significant overruns or underruns. C. State problems or difficulties in recruiting consultants, with reference to ADB procedures. Assess the consultant's work and the working relationship between the executing agency (EA) and the consultant. Use of a design and monitoring framework is strongly recommended. D. State problems or difficulties encountered in procuring goods and services (including civil works) with reference to ADB procedures. Assess the supplier's or contractor's performance under the contract. E. Give the extent of compliance of the borrower and EA with loan covenants, with reasons for noncompliance or delays in compliance and the remedial actions taken. F. State reasons for any delays in loan utilization. Evaluate the appropriateness of the disbursement methods used. Justify the reallocation of loan proceeds. G. State problems or difficulties with subproject appraisal. Evaluate the EA’s performance and capacity to appraise subprojects.

III. INITIAL OPERATIONS

A. Describe initial operations of the project and transitional problems encountered from project completion to initial operations. B. Describe measures taken to ensure continued smooth operation of the project relative to management, staffing, funding, and maintenance of project facilities. C. Analyze the prospects of the project benefits being realized.

36 Appendix 10

IV. EVALUATION OF THE ASIAN DEVELOPMENT BANK’S PERFORMANCE

A. Assess ADB's performance in supervising project implementation. Include comments on the adequacy of the consultants’ terms of reference and appropriateness of specifications in tender documents. Evaluate the effectiveness and timeliness of assistance extended by ADB to solve implementation problems. B. Comment on problems encountered with ADB's procedures. Note the measures taken to resolve these problems and suggest changes in procedures and requirements.

Appendix 11

37

LOAN 2375-BAN: PADMA MULTIPURPOSE BRIDGE DESIGN PROJECT

STATUS OF COMPLIANCE WITH LOAN COVENANTS (As of 28 January 2009)

Covenant Status of Compliance Environment 1. Environmental Protection

The Borrower shall ensure that BBA shall prepare, with adequate public consultation with affected people, an environmental impact assessment (EIA), which shall include an environmental management plan (EMP), in accordance with the environmental assessment requirements of the Borrower and ADB. The Borrower shall ensure that the environment concerns of affected people will be addressed in the Project design. (Schedule 5, para 6, LA)

Ongoing.

Social 2. Resettlement and Land Acquisition

The Borrower shall ensure that a resettlement plan for Padma Multipurpose Bridge Investment Project shall be prepared based on detailed design of the Project and in accordance with the requirements of ADB's Policy on Involuntary Resettlement (1995) and Policy on Indigenous Peoples (1998), and laws and regulations of the Borrower. The Borrower shall also prepare a land acquisition plan. The resettlement plan and land acquisition plan shall be submitted to ADB for approval. (Schedule 5, para. 7, LA)

Being complied.

3.

The borrower shall ensure that land acquisition and resettlement for the PMBIP shall be implemented in accordance with the requirements of ADB's Policy on Involuntary Resettlement (1995) and Policy on Indigenous Peoples (1998), and laws and regulations of the Borrower, as set out in the resettlement plan and/or the land acquisition plan agreed upon between ADB and the Borrower, which shall include (a) compensation and entitlements to affected people, (b) timely provision of funds and disbursements to affected people, (c) adequate supervision, monitoring, and reporting by the BBA, (d) adequate information dissemination and consultation with affected people, (f) regular reporting of progress to ADB, and (g) establishment of a grievance redress committee in each union where land acquisition will take place. (Schedule 5, para. 8, LA)

Being complied.

38 Appendix 11

Covenant Status of Compliance

4. Labor Laws / Gender The Borrower shall ensure that all civil works procurement documents to be prepared under the Project shall incorporate provisions and budget to the effect that contracts (a) comply with all applicable labor laws and related international treaty obligations, (b) do not employ child labor, as defined under Bangladesh laws, (c) provide safe and proper working conditions for male and female workers, (d) do not differentiate between wages of male and female workers for work of equal value, (e) implement the provisions set forth in the Gender Action Plan prepared for the Project, and (f) carry out HIV/AIDS and human trafficking awareness campaigns in the campsites and corridors of influence. (Schedule 5, para 9, LA)

To be complied.

Financial 5. Without prejudice to Section 2.09 of the Project

Agreement, consolidated accounts for the Project and related financial statements shall be audited annually by private sector auditors acceptable to ADB in addition to audits conducted by the Borrower's comptroller and the auditor general. (LA, Schedule 5, para. 12)

To be complied.

6. (a) BBA shall (i) maintain separate accounts for the Project and for its overall operations; (ii) have such accounts and related financial statements (balance sheet, statement of income and expenses, and other related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, promptly after their preparation but in any event not later than 6 (6) months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan proceeds and compliance with the financial covenants of the Loan Agreement), all in the English language. BBA shall furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

To be complied.

7. (b) BBA shall enable ADB, upon ADB's request, to discuss BBA's financial statements for the Project and its

To be complied.

Appendix 11

39

Covenant Status of Compliance financial affairs related to the Project from time to time with the auditors, appointed by BBA pursuant to Section2.09(a) above, and shall authorize and require any representatives of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of BBA unless BBA shall otherwise agree. Project Agreement, Section 2.09(a) & (b)

Others 8. Established, Staffed, and Operating PMU/PIU

PIU: BBA shall establish the PIU for (i) monitoring the process of day to day Project implementation, (ii) provision of assistance to the DC in carrying out the DC's tasks, (coordinating Project activities and functions of the CE and the panel of experts (POE), (iv) processing withdrawal of loan proceeds, (v) preparation of Project progress and status reports, and (v) maintenance of accounts and accounting records of the Project. The PIU shall consist of a Project Director, a Deputy Project Director, Project engineers as required, a finance and accounting officer, and an administrative officer.

Established.

9. DC (design consultants): BBA shall engage a team of consultants as the DC for preparation of scheme designs, implementation of technical studies, development of detailed engineering design and tender documents for the Padma Multipurpose Bridge Investment Project. In addition, the DC shall assist BBA in undertaking tender actions including contractors' prequalification, preparation of selection criteria, tender evaluation and final contract documentation.

DC has been engaged.

10. CE (checking engineers): BBA shall engage a team of consultants independent of the PIU as the CE and cause the CE to ensure compliance of the design criteria, specifications, drawings and other related documents with the project objectives. The terms of reference of the CE shall be developed by the DC and the qualification of the candidates of the CE shall be reviewed by the POE.

Ongoing.

11. POE: BBA shall establish the POE outside the PIU to independently monitor and provide advice and guidance on Project implementation. POE shall consist of internationally recognized individual experts/consultants with such skills as bridge engineering, structural

Candidates have been nominated.

40 Appendix 11

Covenant Status of Compliance engineering, highway engineering, and structuring and financing concessions. BBA shall select such experts/consultants from a short list prepared by BBA and approved by ADB. (Schedule 5, paras. 2, 3, 4, & 5, LA)

12. Fielding of Consultants

The Borrower and ADB agree that ADB shall carry out consultant selection process for the DC on behalf of the Borrower while the Borrower shall be responsible for final contract negotiations and contract signing.

To be complied.

13. Except as ADB may otherwise agree, the Borrower shall apply QCBS selection for selecting and engaging consulting services.

14. The Borrower's Public Procurement Regulation 2003 for selecting and engaging consultants may be used for selecting and engaging individual consultants for POE subject to the notifications set out in the Procurement plan. (Schedule 4, paras 3, 4, and 5, LA)

15. Construction Supervision: The Borrower shall adopt Federication Internationale des Ingenieurs-Conseils (FIDIC) mechanism for construction supervision. All design and construction contracts shall adopt standard FIDIC forms of contract to be applied without modifying normal responsibilities of contract parties. (Schedule 5, para. 10, LA)

Ongoing.

16. Operation and Maintenance Scheme: The Borrower shall develop a technically and financially sustainable operation and maintenance scheme applicable to major bridges including the Padma Multipurpose Bridge. (Schedule 5, para 11, LA)

Not yet due.

17. Accounts and Audits: Without prejudice to Section 2.09 of the PA, consolidated accounts for the Project and related financial statements shall be audited annually by private sector auditors acceptable to ADB in addition to audits

Not yet due.

Appendix 11

41

Covenant Status of Compliance conducted by Borrower's comptroller and the auditor general. (Schedule 5, para. 12, LA)

18. Reports:

BBA shall submit monthly progress reports including the status of land acquisition and resettlement and other activiites that will take place concurrently with the Project implementation. (Schedule 5, para. 13, LA)

To be complied.

19. Project Reviews: ADB shall conduct periodic reviews and a midterm review in March 2010 to review the progress of the Project and undertake any necessary midcourse corrections. In addition, ADB shall conduct special reviews as appropriate. The Borrower shall give all possible assistance for carrying out such reviews. (Schedule 5, para. 14, LA)

Not yet due.

42 Appendix 12

LIST OF ADB REFERENCE MATERIALS A. Project Related

1. Report and Recommendation of the President to the Board of Directors (Nov

2007) http://www.adb.org/Documents/RRPs/BAN/35049-BAN-RRP.pdf 2. Loan Agreement (Dec 2007) http://www.adb.org/Documents/Legal-Agreements/BAN/35049/35049-BAN-

TAL.pdf 3. Minutes of Loan Negotiations

B. Consultants. May be downloaded from the following website: http://www.adb.org/Consulting/documents.asp

4. Guidelines on the Use of Consultants by ADB and Its Borrowers (Feb 2007) http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf

5. Consulting Services Operations Manual (2008) http://www.adb.org/Documents/Manuals/Consulting-Services-Operations Manual/CSOM.pdf

C. Procurement. May be downloaded from the following website:

http://www.adb.org/Procurement/prequalification-bid-documents.asp 6. Guidelines on Procurement under ADB Loans (Feb 2007)

http://www.adb.org/Documents/Guidelines/Procurement/default.asp D. Disbursement

7. Loan Disbursement Handbook (Jan 2007) http://www.adb.org/Documents/Handbooks/Loan_Disbursement/default.asp E. General – may be downloaded from the following website

http://www.adb.org/Integrity/ (Dec 2007) http://www.adb.org/Documents/Policies/Environment/default.asp (Nov 2002)

http://www.adb.org/Documents/Policies/Involuntary_Resettlement/default.asp (Aug 1995) http://www.adb.org/Documents/Policies/Indigenous_Peoples/default.asp (Apr 1998)

http://www.adb.org/Documents/Handbooks/Borrowers_Fin_Gov_Mgt_Investment/ borrowers_financial.pdf (2006)