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Grant ImplementationAdministration Memorandum

The Grant Implementation Memorandum (GIM) is an active document, progressively updated and revised as necessary, particularly following any changes in project costs, scope, or implementation arrangements. This document, however, may not reflect the latest project changes. The GIM shall be read along with the RRP and the Grant Agreement.

Project Number: 36339 Grant Number: G0143-LAO February 2010

Project Implementation Manual

G0143-LAO: SMALL TOWNS WATER SUPPLY AND SANITATION SECTOR

PROJECT ..

CURRENCY EQUIVALENTS (as of 30 November 2008)

Currency Unit – kip (KN)

KN1.00 = $0.0001169796

$1.00 = KN8,548.50

ABBREVIATIONS ADB – Asian Development Bank AusAID – Australian Agency for International Development CIPP – Community Information and Participation Program DHUP – Department of Housing and Urban Planning DPWT – Department of Public Works and Transport EA – executing agency EGDF – ethnic groups development framework GDCF – Gender and Development Cooperation Fund HRD – human resources development ICB – international competitive bidding IEE – initial environmental examination LACF – land acquisition and compensation framework LACP – land acquisition and compensation plan Lao PDR – Lao People’s Democratic Republic LWU – Lao Women’s Union M&E – Millennium Development Goal MDG – monitoring and evaluation MOA – memorandum of agreement MOH – Ministry of Health MPWT – Ministry of Public Works and Transport NCB – national competitive bidding NCRWSSP – Northern and Central Regions Water Supply and Sanitation

Sector Project O&M – operation and maintenance OPG – Office of the Provincial Governor PCU – project coordination unit PIU – project implementation unit PPME – project performance monitoring and evaluation PNP – provincial nam papa (water supply utility) PPSC – provincial project steering committee PSC – project steering committee QCBS – quality- and cost-based selection SEDP – socioeconomic development plan SGIA – second-generation imprest account SIP – sector investment plan SOE – state-owned enterprise TA – technical assistance VDC – village development committee VEI – village environmental improvements WASA – Water Supply Authority WSD – Water Supply Division WSP-EAP – Water and Sanitation Program for East Asia and the Pacific

WSRC – Water Supply Regulatory Committee WSSSP – Water Supply and Sanitation Sector Project

NOTES

(i) The fiscal year (FY) of the Government ends on 30 September. FY before a

calendar year denotes the year in which the fiscal year ends, e.g., FY2008 ends on 30 September 2008.

CONTENTS

GRANT PROCESSING HISTORY………………………………………………………………………i DESIGN ANDMONITORING FRAMEWORK………………………………………………………… ii

I. THE PROPOSED PROJECT ........................................................................................... 1 A. Project Area and Location .................................................................................... 1

B. Impact and Outcome ............................................................................................ 1

C. Outputs ................................................................................................................. 1

D. Special Features................................................................................................... 5

II. COST ESTIMATES AND FINANCING PLAN .................................................................. 6 A. Detailed Cost Estimates 6 B. Financing Plan 6 III. IMPLEMENTATION ARRANGEMENTS 7 IV. IMPLEMENTATION SCHEDULE 8 V. CONST ESTIMATES AND FINANCING PLAN DURING IMPLEMENTATION 8

VI. CONSULTANT RECRUITMENT ...................................................................................... 9 VII. PROCUREMENT ............................................................................................................. 9 VIII. DISBURSEMENT PROCEDURES................................................................................. 10

A. Imprest Fund Procedure ..................................................................................... 11

B. Direct Payment Procedure.................................................................................. 11

C. Commitment Procedure...................................................................................... 11

D. Reimbursement Procedure................................................................................. 11

IX. PROJECT MONITORING AND EVALUATION .............................................................. 12 A. Project Performance and Monitoring System ..................................................... 12

B. Project Review.................................................................................................... 12

X. REPORTING REQUIREMENTS .................................................................................... 12 A. Progress Report.................................................................................................. 12

B. Annual Contract Awards and Disbursement Plans............................................. 13

C. Project Completion Report.................................................................................. 13

Deleted: 10

Deleted: 12

Deleted: 13

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XI. AUDITING REQUIREMENTS ........................................................................................ 13 XII. MAJOR GRANT COVENANTS ...................................................................................... 13 XIII. KEY PERSONS INVOLVED IN THE PROJECT ............................................................ 13

A. ADB Staff ............................................................................................................ 13

B. Executing Agency ............................................................................................... 14

XII. ANTICORRUPTION ....................................................................................................... 14 APPENDICES

1. Summary Poverty Reduction and Social Strategy……………………………………..16 2. Gener Action Plan………………………………………………………………………… 18 3. Detailed Cost Estimates and Financing Plan............................................................ 20 4. Project Management and Fund Flows....................................................................... 22 5. Implementation Schedule…………………………………………………..…….… …. 25 6. Consultants TOR ………………………………………….. .26 7. Procurement Plan ………………………………………………………………….……… 61 8. Disbursement Procedures…………………………………………………………….….. 64 9. Pro-Forma of the Executing Agency's Project Progress Report……………………... 69 10. Worksheet for Quarterly and Yearly Contract Awards and Disbursements……….… 73 11. Pro-Forma of Project Completion Report………………………………………………. .76 12. Financial Reporting and Auditing Requirement………………………………………….78 13. Grant Covenants……………………………...............……………………………….…. 80 14. List of ADB Reference Materials…………………………………………………….… 86

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GRANT PROCESSING HISTORY

• Approval of PPTA

PPTA 4875 : 22 Nov 2006

• TA effectivity Date : 23 Apr 2007

• TA completion Date : 31 Jan 2009

• MRM : 26 Aug 08

• MOU Signing : 16 Sep 08

• SRC : 03 Oct 08

• MOU Signing : 20 April 2007

• Grant Negotiations : 17-18 Nov 08

• Board Circulation : 27 May 2008

• Board Approval : 02 Feb 2009

• Grant Agreement Signing : 06 Mar 2009

• Grant Effectiveness : 27 Apr 2009

• Grant Completion : 30 Jun 2014

• Grant Closing : 31 Dec 2014

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DESIGN AND MONITORING FRAMEWORK

Design Summary

Performance Targets/Indicators

Data Sources/Reporting Mechanisms

Assumptions and Risks

Impact Expanded access to safe piped water supply and sanitation services for the urban population

65% of the urban population in Lao PDR has access to safe piped water by 2014 and 80% by 2020. 85% of urban households in Lao PDR have pour-flush pit latrines or septic tanks by 2014 and 90% by 2020.

National statistics and census data PNP and water supply regulatory committee (WSRC) technical performance indicators and reports Reports from development partners

Assumptions Government continues to give priority to water supply development in urban centers, including small towns. Risk Economic or political instability or environmental disasters

Outcome Improved access, quality and reliability of piped water supply and sanitation services for residents in target small towns

By 2014: About 137,000 residents benefit from improved services in 124 villages in 15 small towns

Access to piped water increased from the current coverage of 24% to 55% and coverage of pour-flush latrines increased from 74% to 90% in the candidate subproject towns

24-hour piped safe water is supplied in 15 towns upon commissioning of the system Household water bills are no more than 5% of household income

PNP records of customer water bills and surveys

Baseline and follow-up socioeconomic surveys in the target project towns

PNP and WSRC/WASA technical performance indicators and annual reports

Reports on project performance monitoring and evaluation

Assumptions Budgets allocated cover O&M of drains and sanitation

Current household facilities are of adequate design and quality.

Communities are aware of links between health, hygiene, sanitation, and clean water use

Outputs 1.Strengthened urban water supply and sanitation sector 1.1. Strengthened sector planning, management, and regulation 1.2. Improved PNP sustainability

A funding mechanism for WSRC/WASA operations becomes operational by June 2009

WSD finalizes the urban water supply and sanitation sector strategy (2009–2020) in 2011 and updates the water sector investment plan in 2013

By 2014: Participating PNPs have amended their enterprise certification as a state company

Participating PNPs are reviewing and adjusting tariff levels every year

Government subsidy to PNPs

Government notifications

WSRC/WASA tariff review for 2011-2013

WSRC and WASA annual plans on PNP performance

PNPs approved corporate plans, including action plans

PNP tariff schedules and customer water bills in the project provinces

Project performance monitoring and evaluation reports

WSD training records disaggregated by sex and by ethnic group

WSD human resource development strategy and scholarship program in urban

Assumptions The Government, PNP and consumers formally recognize the importance of WSRC and WASA and their establishment is contained in the draft Water Supply Law.

PNPs review and adjust WSRC/ WASA recommended tariffs annually

Government is committed to sector reform

Qualified candidates can be identified based on the selection criteria

Risks WASA is still engaged in project activities

PNPs are unable to experience greater autonomy in their

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Design Summary

Performance Targets/Indicators

Data Sources/Reporting Mechanisms

Assumptions and Risks

1.3. Human resources developed in the urban water supply and sanitation sector

is reduced by at least 50% based on 2006 estimates

Participating PNPs have establish a consumer complaints mechanism, and have reduced consumer complaints by 50%

Out of 55 scholarships, at least 30% are for qualified women

water and sanitation sector operations

2. Developed and rehabilitated water supply systems

By 2014: At least 12 new water supply systems have been constructed and commissioned. At least 3 water supply systems have been rehabilitated.

Subproject feasibility and appraisal reports Construction records Project progress and project completion reports

Assumptions PIUs are operational on time

Government ensures adequate and timely counterpart funds

Urban master plans, safeguard documents and raw water assessments are completed on time

3. Improved drainage and public sanitation

By 2014: Priority drains have been constructed or improved in about 12 towns

100% of drainage catchments are less than 10 hectares.

Public toilets have been constructed or improved in all 12 towns

Subproject feasibility and appraisal reports

Construction records

Project progress and project completion reports

Assumptions PIUs are operational on time.

Government ensures adequate and timely counterpart funds.

Urban master plans, and safeguard documents are approved on time

4. Enhanced community action and participation

4.1. Community information and participation program is developed and implemented

4.2. Improved household sanitation and VEI

By 2014: At least 30% of VDC members are female

Awareness of health, hygiene and sanitation has increased by at least 30% in all project villages.

Community participation plans formulated with at least 40% female representation.

At least 50% of the 124 project villages have prioritized improvements in public sanitation facilities in schools and market places.

At least 1,400 households have improved toilet facilities.

At least 30% of jobs created for O&M of small-scale investments in each subproject are given to qualified women

Baseline and follow-up socioeconomic surveys in the project towns

Project progress and project completion report

Community participation plans

Village proposals and agreements for VEI

Construction records

Assumptions PIU, provincial and district agencies are committed to community development

Risk Weak capacity of mass organizations contracted to implement community information and participation program activities

Health and hygiene awareness do not result in behavior change

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Design Summary

Performance Targets/Indicators

Data Sources/Reporting Mechanisms

Assumptions and Risks

5. Enhanced gender equity in urban water supply and sanitation

By 2014: About 20 engineering scholarships awarded to female high school graduates

Participating PNPs have incorporated specific gender activities into their corporate plans

A mechanism for sharing information on gender in the sector is operational

Government notifications WSD HRD strategy and scholarship program in urban water and sanitation sector

PNPs approved corporate plans, including action plans

Project performance monitoring and evaluation reports

WSD training records disaggregated by sex and by ethnic group

Assumptions MPWT and PNPs remain committed to promoting gender equality in the sector

6. Improved capacity for project implementation and operation and maintenance

Subprojects are selected, prepared and designed based on the agreed upon criteria and standards.

A feasibility report and an appraisal report are prepared for each subproject prior to its approval.

Specific water supply system O&M plans are implemented following commissioning with full participation of PNP and OPWT staff.

O&M plans for VEI are agreed to by OPWT and communities and implemented with full participation of local stakeholders.

Baseline and follow-up socioeconomic surveys in the project towns

Construction records

Project progress and project completion reports Evaluation of the capacity development program

Assumptions Provincial and district agencies allocate adequate staff and resources for PIU and project operating entities

The capacity of village development committees is strengthened.

Activities with Milestones 1 Strengthened Urban Water Supply and Sanitation Sector 1.1 WSD develops the urban water supply and sanitation sector strategy, in collaboration with WASA staff (Q3 2009–Q2 2011). 1.2 Implement actions in the GAP and EGDF (Q3 2009–Q1 2014) 1.3 WSRC and WASA complete regulatory tasks such as a tariff review for 2011–2013 and annual PNP performance reports (Q3 2009–Q1 2014). 1.4 WSRC and WASA develop an annual consultation plan to raise the awareness of key stakeholders on regulation and how WSRC and WASA function (Q3 2009–Q1 2014). 1.5 Disseminate key urban sector planning and regulatory guides to PNPs and provincial agencies (Q3 2009–Q1 2010). 1.6 Develop guidelines and eligibility criteria for scholarships for water supply or environmental engineers (Q3 2009–Q2 2010). 1.7 Formulate and implement a scholarship program for water supply/engineers by mid-2010, and implement the program over the following four years (Q3 2010–Q2 2014). 1.8 Undertake institutional assessments of project PNPs and formulate corporate plans and specific action plans throughout project implementation (Q3 2009–Q4 2011). 1.9 Support the implementation of PNPs’ corporate plans (Q3 2009–Q2 2013). 2 Developed and Rehabilitated Water Supply Systems 2.1 Establish and train the PCU and PIUs prior to project start (Q1 2008–Q2 2009). 2.2 PCU assesses readiness of provinces to implement the project and establish subproject priorities for development (Q4 2010). 2.3 PCU provides project orientation to stakeholders (Q4 2009) and provides technical and management support to the PCU and PIUs throughout project implementation Prepare feasibility studies, subproject appraisal reports (including baseline and social

Inputs Total: $26.1 million

ADB: $23.0 million

GDCF: $0.5 million

Government: $2.5 million

Beneficiaries: $0.1 million

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Design Summary

Performance Targets/Indicators

Data Sources/Reporting Mechanisms

Assumptions and Risks

Activities with Milestones surveys, safeguards and social plans), subproject designs and tender documents progressively throughout project implementation (Q3 2009–Q3 2010) 2.4 Execute subsidiary loan agreements (to include arrears collection strategy), memoranda of agreements, and district sanitation regulations prior to contract awards, progressively throughout project implementation (Q4 2009–Q2 2010) 2.5 Implement GAP, EGDF and safeguard plans (Q3 2009–Q3 2010) 2.6 Conduct contract bidding, award and construction of water supply systems progressively throughout project implementation (Q3 2010–Q4 2011) 3 Improved Drainage and Public Sanitation 3.1 Establish and train PCU and PIUs prior to project start (Q3 2008–Q2 2009). 3.2 PCU assesses readiness of provinces to implement the project and establish subproject priorities for development (Q4 2009). 3.3 PCU provides project orientation to stakeholders (Q4 2009) and technical and management support to the PCU and PIUs throughout implementation 3.4 Prepare feasibility studies, subproject appraisal reports (including baseline and social surveys, safeguards and social plans), subproject designs and tender documents progressively throughout project implementation (Q3 2009–Q3 2010). 3.5 Implement GAP, EGDF and safeguard plans (Q3 2009–Q3 2010) 3.6 Conduct contract bidding, award and construction of drainage systems progressively throughout project implementation (Q3 2010–Q4 2011). 4 Enhanced Community Action and Participation 4.1 Reinforce and train VDC members in each village throughout project implementation, commencing in (Q4 2009) with the first group of subprojects 4.2 Undertake community mobilization, participatory workshops, meetings to inform stakeholders (Q1 2009–Q2 2010) 4.3 Conduct baseline survey in core project villages as part of outputs 2 and 3 feasibility surveys (Q4 2009) 4.4 Undertake information and health needs assessment in subproject villages, and raise awareness of health, sanitation and water use during implementation (Q2 2010–Q2 2012). 4.5 Implement GAP, EGDF and safeguard plans (Q1 2010–Q4 2011) 4.6 Prepare and implement annual community participation plans to mobilize participation and raise project awareness during project implementation (Q4 2009–Q3 2012). 4.7 Improve household and village environments through VEI during project implementation (Q1 2010–Q2 2012). 4.8 Undertake final evaluation of community action and participation activities (Q3 2012) 5 Enhanced Gender Equity in Urban Water Supply and Sanitation 5.1 Develop guidelines and selection criteria for special merit-based scholarships program for female high school graduates, as part of the overall HRD strategy (Q3–Q4 2009) 5.2 Award the engineering scholarships by mid-2010 (Q1 2009–Q2 2014). 5.3 Prepare guidelines for the PNP gender empowerment program; and begin conducting individual gender assessments and action plans (Q3 2009–Q4 2011). 5.4 Prepare knowledge management products on gender and on the sector (Q1–Q2 2014) 6 Improved Capacity for Project Implementation and Operation and Maintenance 6.1 Mobilize international and national consulting services (Q2 2009) 6.2 Execute plans formulated by OPWT and individual villages for O&M of the VEI prior to commencing physical works in each village (Q2–Q3 2010). 6.3 Build and strengthen the capacities of project operating entities to manage, operate and maintain the project infrastructure (Q4 2009–Q4 2011). 6.4 Build and strengthen the capacities of VDCs to undertake O&M of the VEIs and their on-site water supply and sanitation facilities (Q4 2009–Q4 2011).

EGDF = ethnic groups development framework, GAP = gender action plan, GDCF = gender and development cooperation fund, HRD = human resources development, Lao PDR = Lao People’s Democratic Republic, MPWT = Ministry of Public Works and Transport, O&M = operation and maintenance, OPWT = Office of Public Works and Transport, PCU = project coordination unit, PIU = project implementation unit, PNP = provincial nam papa (water supply utility), VDC = village development committees, VEI = village environmental improvements, WASA = Water Supply Authority, WSD = Water Supply Division.

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I. THE PROPOSED PROJECT A. Project Area and Location 1. The Project is designed as a sector investment project, representing a 3-year time slice of the Government’s sector investment plan to 2020. The project design is based on detailed analysis of three subproject towns, which are representative of other small towns in terms of the type of interventions and impacts. Financing under the Project is available for an estimated 15 towns, including support for minor rehabilitation works in three towns. Of the 15 top-ranked candidate subproject towns, five are in the poor and poorest districts. The 15 top-ranked towns are geographically concentrated—eight are located in the north, two are in the central region, and five are in the south. All 15 towns are situated within key transport and economic corridors and seven are key tourism destinations, and near international borders B. Impact and Outcome 2. The impact of the Project will be a contribution to the Government’s efforts to expand access to safe piped water supply for the urban population to 65% by 2014 and 80% by 2020 and an increase in urban household coverage of pour-flush latrines to 85% by 2014 and 90% by 2020. The Project will improve the quality of life in small towns and enhance their role as economic, market, manufacturing and service centers for their surrounding rural areas. The outcome will be an improvement in the access, quality, and reliability of the water supply and sanitation services for an estimated 137,000 residents in 124 villages in 15 small towns. By 2014, the Project is expected to have increased access to piped water in the subproject towns to 55% and urban sanitation to 90%. The Project is expected to benefit an estimated 137,000 residents in 124 villages in 15 small towns, by providing safe, reliable piped water, increasing health and hygiene awareness, and improving the urban environments. About 13% of all beneficiares are expected to be poor. A summary poverty reduction and social strategy is in Appendix 1. C. Outputs

3. The Project has six integrated outputs: (i) strengthened sector planning, management, and regulation; (ii) developed and rehabilitated water supply systems; (iii) improved drainage and public sanitation; (iv) enhanced community action and participation in the urban water supply sanitation sector; (v) enhanced gender equity in urban water supply and sanitation; and (vi) improved capacity for project implementation and operation and maintenance. The Project will complement initiatives by other development partners and will build on the two earlier ADB-funded water sector projects. It will closely follow the design of the NCRWSSP, with some modification to the project design and added features.

1. Strengthened Urban Water Supply and Sanitation Sector 4. The Project will (i) strengthen the institutional capacity of WSD, WSRC and WASA, and DPWT to enable them to plan, regulate, and manage the sector effectively; (ii) support PNPs become more sustainable; and (iii) develop a human resources strategy and scholarship program for water supply engineers. 5. After the WSRC has been established, the Project will assist WSRC and WASA regulate and monitor the sector effectively. It will support WSRC and WASA (i) develop and implement an annual consultation plan to increase the awareness of the importance of sector regulation among ministries, provincial governments, and PNPs; (ii) guide PNPs to develop corporate plans to include key regulatory aspects; (iii) assist PNPs to develop an operating and regulation contract (as part of the MOA); (iv) prepare a PNP water quality reference sheet which clarifies the assessment methodology and frequency of collection of raw water flows and MOH’s water quality

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parameters; (v) assist PNPs to incorporate a mechanism for monitoring consumer complaints into their corporate plans; and (vi) prepare the tariff review for 2011–2013 and annual reports on PNP performance. The Project will also support the development of the regulatory system during the initial years by (i) assisting WSRC to meet twice a year and to prepare an annual report on its regulatory activities; and (ii) assisting WASA to prepare biannual progress reports for the WSRC. 6. The Project will strengthen WSD’s capacity to plan, manage and formulate policy for the urban water supply sector. Assistance will be provided to (i) develop the urban water supply and sanitation sector strategy 2009–2020 based on a sector road map (2008–2020); (ii) develop guidelines to facilitate private sector investment; (iii) establish a mechanism for enhanced interagency and development partner coordination; (iv) develop a human resources strategy and scholarship program; (v) engage in sector planning and development activities related to the preparation of PNP corporate plans; and (vi) update the sector investment plan, as needed. 7. Participating PNPs will be supported to improve their performance and sustainability as corporate entities under the Enterprise Law by developing their capacity in business and financial management, commercial orientation, and operational efficiency. The Project will assist each PNP to (i) undertake an initial assessment of its organizational performance and needs; (ii) identify constraints to sustainable operation; (iii) reach consensus on needed actions and reforms; (iv) formulate and implement a time-bound action plan to rapidly improve PNP performance and sustainability;1 and (v) prepare a rolling 3-year corporate plan incorporating the action plan. The PNP corporate plans will provide a road map for transforming individual PNPs into more efficient, commercially oriented, autonomous water supply companies.2 The Project will also support each PNP to improve its understanding of women’s roles in the sector. 8. Four PNPs are being corporatized under the NCRWSSP: Oudomxai, Xaignabouli, Louangphabang, and Louang-Namtha. The NCRWSSP will provide financial software and training in billing, accounting, stock management, and depreciation accounts to help PNPs manage the greater revenues generated by recent tariff increases and to demonstrate to consumers that service levels are improving in line with the tariff increases. 9. The Project will extend this support to additional PNPs. About 12 PNPs are expected to receive support under the Project, including continued support to the four PNPs supported by the NCRWSSP. Each participating PNP will receive support for 3 years, depending on each one’s progress toward corporatization. Contract awards and disbursement for water supply development for the relevant subproject town will depend on the achievement of key milestones in the corporatization process for each PNP 10. The Project will produce a human resources development strategy for the urban water supply sector. The strategy will help WSD to coordinate development partner-supported capacity development programs within the sector human resources framework; evaluate such programs for their effectiveness and achievement of outcomes; and ensure that lessons identified are incorporated into new programs. The strategy will include merit-based and employment-linked scholarships to (i) increase the supply of qualified water supply engineers and environmental engineers; (ii) upgrade technical and management skills of existing staff; and (iii) increase the number of female engineering graduates. For engineering students who have successfully completed at least 3 years of a 5-year engineering bachelor course, scholarships will be available

1 Actions include restructuring and improving efficiency through immediate technical improvements, reducing

nonrevenue water, improving revenue collection, implementing an arrears collection strategy, and adjusting tariffs. 2 This includes (i) a mission statement and corporate objectives; (ii) standards, performance indicators and targets;

(iii) tariffs; (iv) market analysis; (v) PNP management and organization (e.g., staff incentives); (vi) an action plan and detailed activities; (vii) a 3-year financial forecast; and (viii) a capital investment program for staged water supply development.

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for the final 2 years to enable them to complete a bachelor’s degree in environmental engineering.3 These scholarships will be open to all applicants. Scholarship candidates among current MPWT or PNP staff will be nominated by DHUP, DPWT, or PNPs with a commitment by the employer and the recipient of the scholarship to continue employment for at least 5 years. At least 30% of these scholarships will be reserved for qualified women. The Project will assist WSD to (i) develop detailed eligibility criteria and procedures for the scholarship program, including the establishment of a scholarship selection committee; and (ii) administer and implement the scholarship program over 2010–2014

2. Developed and Rehabilitated Water Supply Systems 11. The Project will support the development and rehabilitation of safe, affordable, reliable piped water systems in 15 small towns, including (i) surface, spring, or groundwater sources; (ii) raw water transmission; (iii) a distribution and reticulation pipework; (iv) service reservoirs; (v) individual metered service connections; and (vi) O&M equipment. To ensure that the investment is efficient, the subprojects will focus on the most densely populated areas in the villages. Water treatment plants will be designed for water demands in 2025, and levels of service and standards will be adapted to local conditions to avoid overinvestment. Design criteria and service levels will aim to optimize capital and long-term O&M costs. 12. Water supply rehabilitation will include minor improvements to existing water supply systems to enhance their reliability or water quality. Towns that have asked for assistance for system expansion, capacity augmentation, and rehabilitation works resulting from a lack of O&M are not eligible for support. Three subprojects are nominated for rehabilitation (Huoixai, Vang Vieng, and Saravane), with investment limited to about $150,000 per town. The scope of works includes (i) construction of a raw water reservoir to supplement dry season flows (Huoixai); (ii) development of a supplementary source of supply to remedy dry season water shortages and water treatment plant improvements to enhance water quality (Vang Vieng); and (iii) relocation of raw water intake to avoid a polluted water source (Saravane). The rehabilitation subprojects will include a small amount for O&M equipment and community information and participation, but will not be eligible for drainage or village environmental improvements.4 13. New or rehabilitated water supply systems will be designed and constructed to meet the service levels that are in line with government policy and guidelines and were adopted by the two previous ADB sector investment projects: (i) safe water that meets MOH drinking water quality standards;5 (ii) 24-hour continuous supply; (iii) 10 meter minimum pressure at the point of service in the distribution network; and (iv) individual house connections with meters. New water treatment plants will be designed for water demands in 2025 based on (i) per capita consumption figures of 80 liters per capita per day (lpcd) in 2011 increasing to 100–120 lpcd in 2025; and (ii) population growth rates ranging from 1.6%–3.6% in 2007–2015 to 1.2%–2.8% in 2016–2025. An assessment of the operational capacity of the PNP will be required as part of each feasibility study to determine whether PNPs will be required to enter into service contracts with experienced operators. System-specific O&M manuals that are being developed under the NCRWSSP for each water supply system will be adapted to the requirements of each system. Feasibility studies for three sample subprojects have been prepared—Songkhone, Viengphoukha, and Huoixai. 14. Domestic households will not pay any up-front charges for household metered connections. However, they will be required to enter into an agreement to pay a monthly fee that

3 Environmental engineering courses include water supply, wastewater, drainage, sanitation and solid waste management. 4 These aspects are covered by ADB. 2002. Report and Recommendation of the President to the Board of Directors on

a Proposed Loan to the Lao People’s Democratic Republic for the Small Towns Development Sector Project. Manila. 5 Decision No. 1371/MOH.

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covers water supply consumption, turnover tax, and basic administration. Commercial and institutional consumers will pay for connections at the full cost of labor and materials.

3. Improved Drainage and Public Sanitation 15. The Project will improve drainage and public sanitation in the villages that were selected for new water supply. 16. Drainage works will include the construction or improvement of primary and secondary drains, roadside drains, culverts, and outlets. New water supply systems will require improvements to existing drainage systems to make the systems compatible and to help relieve minor flooding and ponding and reduce health risks associated with stagnant water. The Project will provide equipment for management and O&M of drainage in the towns, including computers and software, workshop and minor construction tools, and other equipment. Priority will be given to primary, secondary, and roadside drains in commercial centers or densely populated areas to ensure the investment is efficient, and that the works are economically viable. Investment will be limited to about $80,000 in each town receiving a new water supply system. 17. The Project will provide sanitation in public areas. Public sanitation in market areas will be encouraged in all subproject towns with new water supply systems, especially those with high tourism potential. Investment will be limited to about $45,000 per town, and detailed O&M arrangements of the facilities (e.g., by kiosk owners in markets) will be agreed upon during feasibility preparation.

4. Enhanced Community Action and Participation 18. The community action and participation program will facilitate community development and participatory planning to improve the environmental conditions of households and villages; promote integrated health and hygiene awareness; provide resources for small-scale investments for households and villages; and coordinate project components in the villages. It promotes participation and benefits for small town residents in the 15 towns including women, ethnic groups and poor households. It consists of (i) community information and participation program (CIPP); and (ii) household sanitation improvements and village environmental improvements (VEI). 19. The CIPP will give communities control over decisions and actions related to water, sanitation and environmental improvements. It will develop capacity to plan, design, operate, supervise, and maintain small-scale infrastructure together with local authorities and agencies. It will support health and sanitation promotion to (i) improve the basic health, hygiene and sanitation knowledge of villagers; (ii) inform households about the benefits of piped water; and (iii) encourage households to install or improve their existing latrine facilities. The program will support information campaigns on health, sanitation and hygiene in schools and women’s groups and among the youth. Implementation of the program may be contracted out to the Lao Women's Union (LWU) at the district level, a quasi-government institution, which will work closely with the district education and health departments. This will help to build the capacity of LWU, ensure sustainability of the awareness activities, and ensure coordination with overall project activities, as the LWU is represented in project implementation units (PIUs). 20. Village environmental improvements will adopt a demand-driven approach and will provide funding and technical assistance for communities to (i) improve household sanitation facilities; and (ii) undertake priority small-scale community improvements related to water, sanitation, and village environmental conditions (such as community drainage and public toilets in schools). A household

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grant of $100 will be provided to each poor household6 connected to the water supply system to construct or improve pour-flush latrines. A smaller amount will be provided to households who decide not to connect, but wish to improve their toilet facilities. Priority will be given to ethnic groups without previous access to sanitation facilities. The sanitation grant is expected to provide 1,400 households with toilet facilities in the subproject towns with new water supplies. 21. Community needs and priorities for village environmental improvements will be identified through a participatory process in each village, and facilitated by the LWU in each district. Each village development committee (VDC) will go through two rounds of planning and prioritization, design and implementation of small subprojects. Funding will be allocated through grants, allowing communities to prioritize one or more initiatives within this budget. The budget will be disclosed to the communities at the start of the planning cycle. The Project will contribute up to 80% of the cost of village environmental improvements, the provincial or district governments will contribute about 10%, and the village will contribute at least 10% in the form of labor, materials, and/or cash. Each village will develop an O&M plan, including funding requirements and will enter into an agreement with the district office for public works and transport (OPWT) before any funds are released. The PIUs will provide engineering and financial management support to the VDCs to implement the small-scale investment program.

5. Enhanced Gender Equity in Urban Water Supply and Sanitation 22. The Project will enhance gender equity in urban water supply and sanitation, and will contribute to women’s empowerment by (i) providing scholarships to female school graduates to enable them to undertake engineering courses, (ii) increasing the attention paid to the role of women in water supply and sanitation management, and (iii) promoting better opportunities for women in PNPs. The Project will support (i) design and administration of 20 merit-based scholarships for female high school graduates in 4-year diploma courses in water supply and environmental engineering; (ii) gender assessments and a pilot demand-driven capacity development program for gender equality in PNPs; and (iii) knowledge management products highlighting gender roles in the sector. The scholarships will be integrated into the overall human resources strategy and scholarships program, open to all female applicants, awarded according to agreed upon selection criteria, and subject to a review by a scholarships selection committee. A gender action plan (GA) was prepared to highlight the different needs of men and women in the water and sanitation sector and to help ensure that men and women have equal opportunities to participate in and benefit from the Project, see Appendix 2.

6. Improved Capacity for Project Implementation and O&M 23. The Project will make project implementation and operation and maintenance services more efficient. Technical, management and capacity development support will be provided to the project coordination unit (PCU) and PIUs throughout the implementation period (2009–2014). The support will cover such areas as project planning, management and coordination; preparation of feasibility studies and procurement packages; design and construction supervision; contract management; business and corporate planning; financial management and accounting; and institutional and human resources development. It will pilot appropriate PNP–private sector cooperation models for water supply extension. It will produce guidelines and manuals in Lao and English for the O&M of water supply and sanitation, support external monitoring, and project auditing. D. Special Features A Phased Approach to Corporatizing PNPs.

6 Government instruction 010/PM/2001 defines poverty and identifies indicators at the household, village and district levels.

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24. To facilitate the steps leading to corporatization, key actions will be linked to disbursement milestones. Each PNP will be required to carry out a set of immediate actions (e.g., tariff reviews, updated record of arrears collected, and reduction in nonrevenue water) aimed at improving their operational performance and sustainability. Once a subproject has been selected, phase 1 of the corporatization process will begin, which includes (i) initial awareness and support for corporatization, (ii) organization restructuring and basic capacity development, and (iii) submission of corporate plans to the PNP board before contract awards. Approval of the plans will be needed before funds for water supply investments are disbursed. A PNP with more than one subproject town will be required to update its corporate plan for approval before contract awards for the second town. The Project will promote coordination between the DHUP of the MPWT, the SOE of the Ministry of Finance, and the Business Promotion Office of the Prime Minister’s Office to strengthen the regulatory environment and improve the overall business and financial performance of PNPs. A Flexible Approach to Water Supply Development. 25. Subprojects will focus on the most densely populated areas in the villages, and water treatment plants will be designed for water demands in 2025. Demand and consumption projections were based on varying population growth rates, flexible demand projections, and particular geographic conditions. Design criteria and service levels aim to optimize capital and long-term O&M costs. Where protected spring sources have been identified, the design of the water treatment plant will be adjusted to local source conditions. Specific O&M manuals will be developed for each water supply system. The Project also includes a provision for service contracts to support PNPs to manage, operate and maintain new water supply systems for the first 12 months following commissioning. Demand-Driven Household and Village Sanitation Improvements. 26. The Project includes a community action and participation program to enable community groups and households to set their own priorities for improvements related to water, sanitation and the environment, and to use and manage infrastructure on the basis of collective resources and contributions. Communities will have a greater sense of ownership and stronger management skills for (i) community planning, managing, operating, and maintaining small investments; and (ii) monitoring and evaluating participatory processes and outputs. Before funds are released, each village will prioritize the improvements it needs, develop an O&M plan, including funding requirements and sourcing, and enter into an agreement with district authorities.

II. COST ESTIMATES AND FINANCING PLAN

A. Detailed Cost Estimates 27. The project investment is estimated to be $26.1 million equivalent, including taxes and duties of $2.1 million. The total cost includes physical and price contingencies. The project investment plan is in Table 1. Detailed cost estimates and the financing plan are in Appendix 3. B. Financing Plan

28. ADB provide a grant of $23.0 million from its Asian Development Fund resources. The Gender and Development Cooperation Fund provide grant cofinancing equivalent to $500,000, to be administered by ADB. Government contributions will include an estimated $2.24 million for taxes and duties and $0.24 million for land acquisition and compensation. Project beneficiaries are expected to contribute about $0.16 million, in the form of labor, materials, or cash. The Government

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will lend each PNP part of the proceeds from the grants from ADB’s Special Funds resources equal to 30% of the capital investment costs of each PNP’s water supply system, through a subproject loan agreement acceptable to ADB.7 The subproject loans will have a maturity of 25 years with a grace period of 6 years, and a fixed interest rate of 6.4%. The balance of 70% of the cost will be provided from the same sources to the PNPs as a grant. The financing plan is in Table 1 below.

Table 1: Revised Project Financing Plan

Source Total

($ million) Share (%) ADB 23.00 88. GDCFa 0.50 1.9 Government 2.48 9.5 Beneficiaries 0.16 0.6

Total 26.14 100.0 ADB = Asian Development Bank, GDCF = Gender and Development Cooperation Fund. a Contributors: the governments of Canada, Denmark, Ireland, and Norway. Source: Asian Development Bank estimates.

III. IMPLEMENTATION ARRANGEMENTS

A. Executing Agency and Implementing Agencies

1. Project Management 29. Implementation arrangements will be similar to those of the NCRWSSP, with modifications to improve efficiency and sustainability. MPWT will be the Executing Agency. The national project steering committee (PSC) for the NCRWSSP will oversee the Project and provide policy guidance. The PSC chair will be the vice-minister of MPWT and the vice-chair the DHUP director general. It will include members from Business Promotion Office of the Prime Minister’s Office, the Departments of Foreign Relations and of SOE Financial Management of the Ministry of Finance, the Department of International Cooperation of the Ministry of Planning and Investment, and the PCU director. A subcommittee for corporatization of PNPs (with the PCU as its secretariat), chaired by the DHUP director general, will meet at least once every quarter. 30. The existing PCU for the NCRWSSP will be expanded and will be responsible for overall planning, coordination and management of both projects. The director will be assisted by two deputy directors assigned to the STWSP. The PCU will be responsible for (i) overall project implementation and coordination; (ii) recruiting and managing consultants; (iii) recruiting the agency for external monitoring of social, resettlement and environment impacts; (iv) procurement of civil works and goods (except those for outputs 3 and 4); (v) confirming the selection of subproject towns based on the selection criteria; (vi) appraising key subproject documents before they are forwarded to ADB for approval; (vii) providing technical and administrative assistance to PIUs; (viii) preparing consolidated project progress and accounting reports and the project completion report for submission to ADB and the Government; (ix) providing all necessary data to the auditor on time and submitting the audited financial statements of project accounts to ADB and the Government. The PCU will be supported by international and national consultants. 31. A provincial project steering committee (PPSC) in each province will guide subproject implementation, coordinate provincial and district agencies, and make key decisions on behalf 7 A similar arrangement was implemented under the NCRWSSP through a subsidiary loan agreement. This

relending arrangement is based on the financial assessment of the PNPs, and the amount is the maximum capital investment that the PNP can recover at this stage in the proposed project towns.

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of the provincial government. The PPSC will be chaired by a provincial vice-governor and will include the subproject district governor, senior officials from DPWT, Department of Finance, Department of Health, PNPs, district office of the Public Works and Transport (OPWT), and the PIU manager. The PPSC will meet as required, but at least every 6 months. A PPSC will not be required in those provinces that have candidate rehabilitation works, unless the province is also a candidate for a new water supply system. At the district level, the district governor or vice-governor will oversee the project, monitor progress, review quality of the work, coordinate the subproject with the PIU and local communities, and report on progress to the PPSC 32. The DPWT will be the implementing agency in each project province. The PIU manager and deputy manager in each province will be from the PNP or the DPWT (one from each). With assistance from the PCU, the PIU will be responsible for day-to-day coordination and supervision of project implementation in the project districts. The PIU will manage procurement for outputs 3 and 4 and will implement output 4 with full participation and decision-making of the VDCs. If the PIU wishes to contract the LWU at the district level for community information and participation program activities, the PIU will be responsible for verifying completion of the contracted activities prior to payment. Each PIU will be responsible for day-to-day project implementation at the local level and will include expertise in (i) administration and finance, (ii) water supply and sanitation; and (iii) community action and participation. The PIU will be responsible for implementing outputs 3 and 4. Key responsibilities include (i) participating in project planning, feasibility studies, design, and procurement activities for the province’s subproject; (ii) coordinating the activities of consultants and contractors in the province; (iii) overseeing construction activities; (iv) coordinating resettlement and assisting the resettlement committee; (v) implementing the gender strategy and the ethnic groups development framework; (vi) supervising capacity development activities at the local level; and (vii) preparing the subproject accounting, auditing, and monitoring reports to PCU and PPSC. The project management and fund flow is in Appendix 4.

IV. IMPLEMENTATION SCHEDULE

33. The Project is a sector investment project and will be implemented over a 5-year period from June 2009 to June 2014. The order in which subprojects are implemented will be determined by agreement between the Government and ADB and will depend on (i) the readiness of the concerned provincial and district governments and PNPs to implement the subprojects prioritized in the investment plan; (ii) compliance with the agreed eligibility criteria, including confirmation that subproject impacts on resettlement and the environment are insignificant; and (ii) geographical grouping of the subprojects to minimize costs and maximize implementation efficiency. For each subproject, a feasibility and appraisal report 8 will be required. Subprojects will be implemented as soon as they are ready, but for reasons of cost, efficiency and expediency, it is expected that they will be prepared and implemented in groups of three to four. If a particular province and its PNP are not considered ready to implement the Project, the corresponding subproject will be assigned a lower priority for development, and the province and PNP will be required to take actions to enhance their readiness to implement before the subproject is approved for funding. WSD will develop detailed eligibility criteria and procedures for the scholarship program during the early stages of project implementation so the program can be administered from 2010 to 2014. An implementation schedule is in Appendix 5. V. REVISED COST ESTIMATES AND FINANCING PLAN DURING IMPLEMENTATION

8 Includes design concept and criteria reports, design standards and specifications, feasibility studies, required social

development and safeguard documents, detailed designs and construction drawings, and procurement plans. Prequalification and bidding documents are prepared following subproject appraisal reports as detailed design.

Comment [emb1]: Title does not reflect content

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34. Table 2 provides the proposed allocation of Grant proceeds. This is attachment to Schedule 2 of the Grant Agreement.

Table 2: Allocation and Withdrawal of Grant Proceeds

CATEGORY ADB FINANCING BASIS

Amount Allocated For ADB Financing ($)

No.

Item

Category Subcategory

Percentage and Basis for Withdrawal from the Grant

Account 1 Civil Works 13,670,000

1A Developing New and Rehabilitating Existing Water Supply System 11,170,000 100% of total expenditures

1B Drainage and Public Sanitation 1,090,000 100% of totaxl expenditures

1C Village Environmental Improvements 1,220,000 80% of total expenditures

ID Household Toilets 190,000 100% of total expenditures 2 Equipment 2,500,000 100% of total expenditures

3 Environmental Management Plan 50,000 100% of total expenditures

4 Consulting Services 4,800,000 100% of total expenditures 5 Recurrent Costs 1,650,000 100% of total expenditures

6 Unallocated 330,,000 Total 23,000,000

VI. CONSULTANT RECRUITMENT

35. A total of 859 person-months of consulting services (124 person-months international and 735 person-months national) will be required to support implementation of the Project through project management, feasibility studies, design construction, and supervision of water supply and sanitation infrastructure, preparation of social assessments with information on poverty, gender and ethnic groups, financial management, institutional and human resources development, social and community development, health and hygiene, involuntary resettlement and environmental safeguards, and project performance management and evaluation. The consultants will deliver on-the-job training and capacity development assistance to the PCU and PIUs. They will also provide services for (i) topographical surveys for feasibility studies and design; (ii) water quality testing for feasibility, design, and monitoring during construction; (iii) geotechnical investigations and soil testing for feasibility studies and design; (iv) survey and clearance of unexploded ordnance;9 and (v) groundwater surveys, if necessary, to include drilling and pump tests. Consulting services will be engaged through a firm in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time) through the quality- and cost-based selection (QCBS) method. The weighting will follow the standard quality–cost ratio of 80:20. The PCU will recruit the consultant team, which will include international and national consultants led by a team leader. The consultant team will report to the PCU. The terms of reference are in Appendix 6.

VII. PROCUREMENT 36. All procurement to be financed under the ADB grant will be carried out in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). International competitive bidding (ICB) procedures will be used for major civil works contracts estimated to cost over $1.0 million, and for supply contracts valued at over $500,000. Procurement of civil works valued at less than $1.0 million equivalent will be undertaken through national competitive bidding.

9 Groundwater investigations and unexploded ordnance clearance will be included in the consultancy contract as

provisional cost items to be subcontracted because the scope of such works is uncertain.

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Modifications and clarifications that need to be made to the Recipient’s national competitive bidding procedures must be agreed on by ADB and the Recipient. Shopping procedures will be followed for materials and equipment packages or works estimated to cost less than $100,000 equivalent. ADB shopping procedures will be used for the small village civil works and supply contracts, and for awareness activities and equipment under the community action and participation program. To the extent possible, quotations will be invited from at least three suppliers or contractors for local procurement. The PCU will carry out procurement for outputs 1, 2 and 5, and the PIU will be responsible for that for outputs 3 and 4. Installation of water meters and service connections will be carried out by the construction contractor under the main water supply construction contract for each subproject town. The district LWU will be contracted to implement the community information and participation program, following a capacity assessment in each subproject town through single source selection. This is justified based on: (i) the LWU is the only organization with a sustained local presence in the project districts, and has a history of working with local communities and participatory development, ensuring local continuity; and (ii) the cost of each assignment is less than $100,000. The procurement plan is in Appendix 7.

II. DISBURSEMENT PROCEDURES 37. Payment of eligible expenditures from the proceeds of the grants will be made in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Direct payment procedures will be used for suppliers, contractors and consultants. To ensure the timely release of grant proceeds and to expedite project implementation, the Government will, immediately upon grant effectiveness, open and maintain a project imprest account at the Bank of Lao for disbursement of eligible expenditures. The Ministry of Finance will be responsible for establishing, managing, replenishing, and liquidating the account. In addition, the PCU will set up a second-generation imprest account (SGIA) in dollars with a commercial bank acceptable to ADB.10

The initial amount to be allocated to the imprest account will be based on the estimated expenditures to be financed from the imprest account for the first 6 months of project implementation, or 10% of the grant amount, whichever is lower. The amount to be deposited into the SGIA will be based on the first 6 months of the projected expenditure of the PCU to be funded from the SGIA, and will not exceed $500,000. A conduit subproject bank account will be opened at each PIU level (estimated total of 15) for receiving fund remittances to meet administration and recurrent costs of the PIUs, and will not exceed $5,000. Funding of subproject accounts will be based on a prior submission of full documentation to the PCU. Other project expenditures incurred by the PIUs will be paid and liquidated using the PCU’s SGIA. The project imprest account and SGIA will be established, managed, replenished, and liquidated in accordance with ADB’s Loan Disbursement Handbook, and detailed arrangements agreed upon between the recipient and ADB. ADB’s statement of expenditure procedures may be used for reimbursing eligible expenditures and liquidating of advances to the imprest account and SGIA. The maximum payment for any individual item using these procedures is $20,000 equivalent per individual payment. Imprest accounts (including the SGIA) and subproject accounts will be maintained according to different financing sources. The Disbursement Handbook can be downloaded from ADB’s website at http://www.adb.org/Documents/Handbooks/Grant_Disbursement/default.asp. Appendix 8 provides a summary of disbursement procedures.

38. The system for withdrawal of ADB Grant proceeds consists of four major types briefly described below.

10 The SGIA will be set up upon grant effectiveness, and the conduit subproject account will be set up after the

relevant subproject is approved by ADB. New PIUs will receive training on disbursement arrangements, and existing PCU and PIUs will receive refresher training.

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A. Imprest Fund Procedure

39. There are two ways to liquidate the imprest fund. (i) Full documentation: For any individual payment exceeding the equivalent of $20,000, the application for replenishment of imprest fund account should be accompanied by supporting documents such as receipts, invoices, or other forms of evidence of payments.

(ii) Statement of Expenditures (SOE): Pursuant to paragraph 5(b), Schedule 2 of

the Grant Agreement, the SOE procedure may be used for payment of eligible expenditures. Any individual payment to be reimbursed or liquidated under SOE procedure shall not exceed the equivalent of $20,000.

An application for replenishment will be supported by SOE in lieu of the normal

full documentation. Under this procedure, the PCU is required to submit to ADB together with a Withdrawal Application, an SOE duly certified by persons authorized to sign Withdrawal Applications. All relevant documents (invoices, receipts, etc.) must be retained and must be made available for auditing and examination by ADB’s representative.

B. Direct Payment Procedure

40. The ADB, at the request of the Recipient, pays a designated beneficiary directly. A separate Withdrawal Application is required for each different currency. The following supporting documents must be submitted to ADB together with the Withdrawal Application: (i) One of the following: (a) For payment of goods: supplier’s invoice or bill of lading; (b) For payment of services: consultant’s claim or invoice; (c) For payment of civil works: claim or invoice from the contractor and work

progress certificate signed by the authorized representative of the Recipient.

C. Commitment Procedure

41. The ADB, at the Recipient's request, irrevocably agrees to reimburse a commercial bank for payments made or to be made to a supplier against a Letter of Credit (LC). Under this procedure, the LC issued by the Recipient's bank (LC issuing bank) becomes operative only if and when ADB issues its commitment letter to the commercial bank in the supplier’s country. The Bank’s payment assurance under this procedure is limited to the amount available in the Grant account. A commitment letter issued by ADB under this procedure is irrevocable in the sense that ADB’s obligation is not affected by the suspension or cancellation of the Grant. D. Reimbursement Procedure

42. The ADB pays from the Grant account to the Recipient's account or, in some cases, to the project account for eligible expenditures which have been incurred and paid for by PCU out of its budget allocation or its own resources. This procedure normally requires submission of full supporting documentation.

(i) Contract or confirmed Purchase Order

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(ii) In addition to the above requirement: (a) For payment of goods (equipment/materials): supplier’s invoice or bill of

lading. (b) For payment of consulting services: consultant’s claim or invoice.

IX. PROJECT MONITORING AND EVALUATION

A. Project Performance and Monitoring System

43. A comprehensive program for project performance monitoring and evaluation (PPME) acceptable to ADB will be carried out during implementation. It will aim to (i) examine the Project’s technical performance; (ii) evaluate the delivery of the planned facilities; (iii) assess the achievement of the Project’s objectives; and (iv) measure the Project’s social, economic, financial, and institutional impacts. The set of PPME indicators developed under the NCRWSSP is in line with the MPWT indicators for urban water supply and sanitation. These indicators will be reviewed and additional ones (based on the design and monitoring framework) will be added at the start of project implementation. Socioeconomic data will be disaggregated by sex and by ethnic group when possible. PIUs will be responsible for carrying out the PPME activities, including pre-project and post-project physical and socioeconomic surveys, data collection, and analysis. Each PIU will establish a PPME baseline from the pre-project surveys and data. Annual PPME reports will be prepared by each PIU, and consolidated by the PCU for submission to ADB. MPWT will cause the PCU to submit a detailed PPME implementation plan for ADB’s review and concurrence within 6 months of grant effectiveness. B. Project Review

44. In addition to regular reviews, ADB and the Government will undertake a comprehensive review within (i) 1 year of grant effectiveness, at which time the detailed design for the first phase subprojects will be substantially completed and significant progress should have been made toward corporatizing the four PNPs; and (ii) 30 months from grant effectiveness (midterm review) at which time the establishment and functioning of corporate PNPs and the WSRC will be reviewed for recommendations. These reviews will include a comprehensive evaluation of project implementation arrangements, a detailed evaluation of the project scope, the actual implementation progress, feed back from PPME program, performance of consultants, institutional development progress, and possible reallocation of grant proceeds. The cost recovery mechanisms for each subproject, the financial and operational performance of PNPs, and the overall sector regulatory system will also be evaluated. Remedial action will be taken as needed.

X. REPORTING REQUIREMENTS A. Progress Report

45. Each PIU will prepare quarterly project progress reports in a short standard format and submit them to the PCU for consolidation and reporting to the PSC, ADB, and cofinanciers. The progress reports will include a periodic review of progress against the training needs assessment of PIUs. The reports will be in a form and detail satisfactory to ADB and the cofinanciers. Each PNP will prepare its annual financial statements, including the balance sheet, income statement, and cash flow statement. The PCU will also submit to ADB, within 3 months of the physical completion of the Project, a project completion report that will cover the details of project implementation, costs, and project evaluation activities at that time, and other information requested by ADB. The report will highlight the development impacts achieved by

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the Project, including an evaluation of resettlement activities and conditions of the affected persons after resettlement. 46. The suggested format and content of progress report is in Appendix 9. This format is designed so that ADB can readily capture key information for monitoring and updating the Project Performance Report, regularly updated by ADB. B. Annual Contract Awards and Disbursement Plans

47. The EA will submit to ADB an annual contract awards and disbursement projections. This requirement is effective in monitoring project implementation and will help identify impediments to implementation progress. The projection is submitted to ADB on 15 December of each year. The form is in Appendix 10. C. Project Completion Report

48. Within 3 months after project physical completion, the Government will prepare and submit to ADB a project completion report describing project implementation, accomplishments, benefits, impact, costs and compliance with Grant covenants, See Appendix 11.

III. AUDITING REQUIREMENTS 49. Project and subproject accounts and financial statements, including those of the PNPs, will be audited annually by auditors acceptable to ADB. The PCU and PIUs will prepare the required information for audit, including information on resettlement implementation, in accordance with project auditing requirements of the Government and ADB. Audited statements of project and subproject accounts and financial statements, including those of the PNPs, together with the report of the auditor, will be submitted to ADB through the PCU within 6 months of the close of the fiscal year. The audit opinion will be based on the use of the imprest account (including the SGIA), and statement of expenditure procedures, see Appendix 12.

IV. MAJOR GRANT COVENANTS 50. A summary of Grant Covenants related to Execution of Project, Operation of Project Facilities, and Safeguards and Reporting Matters is attached as Appendix 13.

V. KEY PERSONS INVOLVED IN THE PROJECT A. ADB Staff

Asian Development Bank, Lao Resident Mission (ADB-LRM)

Mr. Chong Chi Nai Country Director, ADB Lao Resident Mission Tel. No.: (856 21) 250 444 Fax No.: (856 21) 250 333 E-mail: cnchong@adb.org Ms. Khamtanh Chanthy Sr. Project Implementation Officer ADB-Lao Resident Mission Tel No. :(856 21) 250 444 Fax No.: (856 21) 250 333

14

E-mail: kchanthy@adb.org

Controller’s Department Grant Administration Division (CTLA-5) Central Operations Services Office Consulting Operations Services Division 2 (COS2)

Mr. Y. Hirao Financial Control Specialist Disbursement Unit 5 Tel. No.: (63-2) 632-5357 E-mail:yhirao@adb.org Ms. Monina T. De Guzman Control Officer Tel. No. (63-2) 632-4666 E-mail: mdeguzman@adb.org Mr. Mohammad Amir Ingratubun Procurement Speciliast Tel. No.: (63-2) 632-5839 E-mail: mingratubun@adb.org

Address: Facsimile: Website Address:

Asian Development Bank P.O. Box 789 0980 Manila, Philippines (632) 636-2228 (SESS) http://www.adb.org

B. Executing Agency

Ministry of Public Works and Transport

Mr. Khamtavy Thaiphachanh

Department of Housing and Urban Planning

Acting Director General

Vientiane, LaoPDR Fax *856-21) 412 282

Mr. Phomma Veoravanh Project Director

VI. ANTICORRUPTION 51. The Government was advised of ADB’s Anticorruption Policy (1998, as amended to date) and policy relating to Combating Money Laundering and the Financing of Terrorism (2003). Consistent with its commitment to good governance, accountability and transparency, ADB will require the Government to institute, maintain, and comply with internal procedures and controls following international best practice standards to prevent corruption or money laundering activities or the financing of terrorism, and covenant with ADB to refrain from engaging in such activities. The investment documentation between ADB and the Government will allow ADB to investigate any violation or potential violation of these undertakings. In particular, all contracts financed by ADB in connection with the Project will include provisions specifying the right of ADB to audit and examine the records and accounts of PCU and all contractors, suppliers, consultants, and other service providers as they relate to the Project 52. The Project incorporates several other measures, in addition to the standard ADB requirements, to deter corruption and increase transparency.

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53. The GIM shall be read in conjunction with the RRP, Grant Agreement, and relevant documents listed in Appendix 14.

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Appendix 1

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Country/Project Title: Lao PDR: Small Towns Water Supply and Sanitation Sector Project

Lending/Financing Modality: Sector Investment Project Department/Division: Southeast Asia Department Social Sectors Division

I. POVERTY ANALYSIS AND STRATEGY A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy The Lao National Growth and Poverty Eradication Strategy (NGPES) outlines the government’s commitment to improving water and sanitation services as a key means of reducing poverty. It focuses on increasing the distribution of treated water to the population in urban and suburban areas, including improving access to water and latrines in schools and households. The NGPES has been integrated in the Sixth Socio-Economic Development Plan (SEDP) for 2006–2010, which aims for economic growth of 7.5%–8.0% per year; $700–$750 gross domestic product per capita; about 652,000 new productive jobs; and a reduction in the number of poor households to 15%. The plan prioritizes development of basic infrastructure and services in urban areas to accelerate broad-based economic growth. ADB’s country strategy and program (CSP) for Lao PDR (2006–2011) is closely aligned with the SEDP. It is a results-based strategy that focuses on achieving sustainable economic growth, accelerating progress toward the non-income Millennium Development Goals (MDGs), building capacity for good governance, promoting regional cooperation and integration as an engine of progress, and fostering national development through the country’s own strategy and plans. ADB is committed to supporting initiatives to improve the delivery and management of water supply and sanitation services in a financially sustainable manner in urban areas, primarily in secondary and small towns. The Project is in line with the Government and ADB strategies. B. Poverty Analysis Targeting Classification: TI-MDG Key Issues. Lao PDR has a per capita gross domestic product of $490, and about one-third of its population is poor. Structural factors constraining growth and poverty reduction include small domestic markets, the subsistence nature of the rural economy, skill shortages, and the remoteness and isolation of much of the population. However, the economy has grown and diversified in the last 5 years, based on the country’s natural resource base for hydropower, mining, and tourism, and poverty incidence dropped from 46% in 1992 to 33% in 2003 (ADB CSP). In the project towns, 13.3% of the households are poor, and several towns have higher poverty levels than the national average of 32%, including Viengphoukha (60%) and Pakbeng (42%). Of the 21 small towns short-listed, 7 are in the poor and poorest districts, all 21 are situated within the key transport and economic corridors, 10 are key tourism destinations, and 9 are near international borders. About 75% of the poor households are from ethnic groups living on marginally productive land. Remoteness and variation in access to basic infrastructure are key determinants of the regional and unequal distribution of poverty. In the expected project areas, the majority Lao-Tai ethnic group has much better access to safe water (58%) than other ethnic groups (25%–33%). About 75% of non-Lao-Tai ethnic groups lack access to sanitation facilities. Nearly all households in the project towns including those with access to water supply utilities (PNPs), Nam Sa’at, or private systems rely on well, river and/or streams as a source of water in the dry season and consequently experience seasonal water shortages and poor water quality, leading to serious health problems. Design Features. The Project is expected to benefit an estimated 137,000 residents in 124 project villages in 15 subproject towns. The Project will have a direct impact on the health and living conditions of the town communities. Residents of the small towns will benefit from improved health and savings in health care expenditure, and will ultimately receive income benefits from expanded access to piped water and sanitation services. The drainage and sanitation outputs will reduce the incidence and severity of flooding and polluted water, provide sanitation facilities in public areas and schools, and improve living conditions and public health in the project area. Water supply and sanitation will particularly benefit women, by reducing the time and money they spend on purchasing, collecting, treating and storing water and by improving the hygiene and health of families and communities and reducing health care expenditure. The projected water supply tariffs are affordable and below the affordability threshold of 5% of household expenditures. The Project will adopt several mechanisms to ensure water continues to be affordable for the poor: (i) no upfront connection charges for households connecting to the PNP system; (ii) progressive tariffs, based on a lifeline water consumption; (iii) financial assistance for poor households to construct a hygienic latrine; and (v) flexible contributions of cash, materials and labor for small-scale demand-responsive village environmental improvements. A greater role for the poor, women and members of small ethnic groups in local planning, consultation and decision-making is achieved through representation on village committees.

II. SOCIAL ANALYSIS AND STRATEGY Findings of Social Analysis. Lao PDR lags behind other countries in the region on a number of non-income MDGs, such as life expectancy at birth (63 years), child malnutrition (40%), and infant mortality rate (62 per 1,000 live births). One third of the adult population cannot read or write. Lao PDR is also lagging behind on the MDG water and sanitation targets. The impacts of the lack of water and sanitation services are significant, and water-related diseases are significant contributors to poor health status, lost work and school time, high expenditure on medicines and health care costs, increased workload for women as carers, and increased poverty. National health statistics suggest that water and sanitation-related illnesses such as malaria, dengue, diarrhea, and intestinal helminths are prevalent in the subproject towns. Diarrhea continues to be the second biggest killer of children and the third biggest killer of adults in the country. Malaria is the number one ranked cause of mortality overall, with 70% of the population at risk. High calcium content in the water also results in problems with kidney and urinary tract stones for 12%–18% of adults and children.

17

B. Consultation and Participation Consultation and Participation Process During the Project Preparation. The Project was designed following a highly participatory approach and involved consultations with officials, residents and key informants in subproject towns and at the national and provincial levels. Activities included (i) reconnaissance visits to consult and inform officials about the Project, informal interviews with villagers, and district data collection; (ii) engineering and environmental visits in three sample subproject towns; (iii) sample social surveys in the three sample subproject towns; (iv) presentation of preliminary assessments to district and village officials in the three sample subproject towns; (v) meetings with representatives of Lao Women’s Union, the Ministry of Health, development partners and organizations in the water and sanitation sector; and (vi) workshops with national and provincial stakeholders on policy issues.

What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring? Information sharing Consultation Collaborative decision making Empowerment. Was a C&P plan prepared? Yes. During implementation, detailed participation plans will be prepared for each subproject using participatory methods and incorporated into individual feasibility studies. The Project includes a community action and participation program, which will require community-driven planning and implementation of awareness programs and small-scale environmental improvements. C. Gender and Development Key Issues. Women, particularly from small ethnic groups, are key beneficiaries of the Project. Lack of water supply and sanitation directly affects their daily life, health and workload. They are primarily responsible for taking care of daily household needs and family health, and spend up to 2 hours per day collecting and storing water. Women in Lao PDR are more vulnerable than men because they lack access to land, food, education, and health care, and have long working hours. While gender roles vary within rural communities, women from some ethnic groups tend to be the most disadvantaged. Compared with men, women have far lower average literacy and education enrollment and completion rates. Education gaps widen at higher levels of schooling. They have limited access to market information, technical training, and financial services. Promoting gender equality is an important national goal of the Lao PDR. The National Commission for the Advancement of Women helps to ensure women have equal access to basic services and productive resources, and is responsible for implementing national strategies. It reports directly to the government. The LWU helps with implementation on the ground. Key Actions. The project design includes an output on enhanced gender equity in urban water supply and sanitation, financed by the Gender and Development Cooperation Fund. It also includes a detailed gender action plan with specific targets and measurable indicators. The GAP is in Appendix 12: Gender plan (Appendix 12) Other actions/ measures No action/measure III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Issue Significant/

Limited/ No Impact

Strategy to Address Issue Plan or Other Measures in Design

Involuntary Resettlement Limited

Subprojects will be classified Category B or C. A land acquisition and compensation framework for the overall project and short land acquisition and compensation plans for 3 subprojects have been prepared in accordance with ADB’s Involuntary Resettlement Policy (1995) and Government regulations.

Full Plan Short Plan Framework No Action

Indigenous Peoples

Limited

The Project is built around the needs of ethnic groups and includes strategies to ensure that they benefit from the Project. Specific actions have been incorporated into project design. An ethnic group development framework has been prepared to help manage impacts during subproject design.

Plan Other Action EGDF No Action

Labor Employment

opportunities Labor retrenchment Core labor

standards

Limited

Residents are expected be offered work as access to water supply is improved. Local employment during civil works will primarily be unskilled labor of short duration. An assurance for labor standards is added.

Plan Other Action No Action

Affordability No impact Economic analysis of three sample projects shows that the projected water supply tariffs are affordable and well below the affordability threshold of 5% of household expenditures.

Action No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human trafficking Others

Limited There are limited risks of HIV transmission associated with the presence of contractors, which, if necessary, will be mitigated through awareness campaigns.

Plan Other Action: No Action

IV. MONITORING AND EVALUATION Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? Yes No

18

Appendix 2

GENDER ACTION PLAN

Project Outputs Actions Proposed General actions ●Promote and publicize women who may be role models to younger women.

●Consult with men and women separately to discuss and agree on proposed infrastructure. ●Record consultations in project management documents. ●Include screening of potential gender impacts and development of enhancement measures and monitoring and evaluation activities disaggregated by sex, ethnicity, and income. ●All databases will include sex-disaggregated data and be organized to facilitate analysis of issues by gender.

Output 1: Strengthened Urban Water Supply and Sanitation Sector 1.1 Strengthened sector planning, management, and regulation

●The updated urban water sector strategy includes a section on gender. ●Ensure equal access for women and members of all ethnic groups to employment, training, and capacity development opportunities within WASA, WSD and PNPs.

1.2 Improved PNP sustainability

●PNPs target female staff for advancement opportunities. ●Establish policies and procedures to promote recruitment of qualified women in PNPs, and target a 10% increase of women in technical and leadership positions.

1.3 Human resource strategy for the urban water supply sector is developed.

●Human resource strategy for urban water sector includes a section on gender, and strategies for promoting gender equity ●At least 30% of scholarships in all categories are reserved and allocated to women.

Output 2: Developed and Rehabilitated Water Supply Systems Output 3: Improved Drainage and Public Sanitation ●Ensure subproject screening of potential gender impacts and development of enhancement

measures and monitoring and evaluation disaggregated by sex, ethnicity, and income. ●Contracts for civil works to specify that recruitment of local labor will be based on equal opportunities for women and men, and based on labor requirements and qualifications. ●Ensure that equal wages are paid for men and women laborers for civil works. ●Ensure that the process of resettlement and land acquisition is gender-sensitive. ●Consult with both men and women about town-level drainage improvements.

Output 4: Enhanced Community Action and Participation 4.1. Community information and participation program 4.2. Improved household sanitation and village environmental improvements

●PCU and the PIU introduce the Project to male and female district and village representatives. ●Identify households headed by women and vulnerable households, and ensure they will have equal access to participate in the Project. ●Encourage the election of women to the village committees. ●VDCs and PIUs actively encourage men and women to actively participate in meetings. ●VDC, PIU, and district to consult with women about the content, format, and media for community action and participation. ●Provide ongoing support and training to VDCs, including on gender issues. Establish specific mechanisms to promote women’s representation in decision-making processes. ●Ensure all information, education and communication, materials are gender-sensitive. Provide information to women through channels and at times which are suitable to their work and domestic responsibilities. ●Develop and implement gender-sensitive community mobilization and planning methodologies, including gender-sensitive monitoring of activities. ●Ensure that illiteracy is considered in all trainings and meetings to ensure that illiterate women and men are not excluded from participating and benefiting from the Project.

19

Project Outputs Actions Proposed ●Community participation plans formulated with stakeholders, with at least 40% female

representation and include specific steps for promoting female participation. ●Ensure that 40% of capacity development activities are reserved for women and caters to the needs of both men and women. Disaggregate participation records by sex and ethnicity. ●Target of at least 40% female participation in meetings and other community action and participation-related activities. ●Ensure men and women have equal access to project-created employment opportunities. ●Target households headed by women and poor households for financial assistance for hygienic latrines. ●Small-scale community improvements undertaken under village environmental improvements have equitable benefits for women in the village. ●Health and hygiene promotion and awareness programs include components specifically targeted for men and women. ●Gender-sensitive design used for school and public toilets, which will include separate facilities for males and females.

Output 5: Enhanced Gender Equity in Urban Water Supply and Sanitation 5.1. Special scholarships are awarded

5.2. Increased gender awareness in PNPs

5.3. Improved knowledge management

●At least 20 engineering merit-based scholarships are made available for high school graduates during the first year of project implementation. ●A gender analysis for each participating PNP is completed and a gender action plan is developed to support the results of the analysis. Aspects are included into the PNP corporate plan. ●At least 50% of participating PNPs qualify for a second round of GDCF funding. ●A publication is produced and a website is developed highlighting the experiences under this output and disclosing grant-related information. ●An international gender specialist (3 person-months) and a national gender specialist (12 person-months) will be recruited to support the activities under this output.

Output 6: Improved Capacity for Project Implementation and Operation and Maintenance ●PCU established with at least 30% female representation. Target that at least one of the two

new PCU deputy directors is a woman. ●PIUs established, with at least 30% female representation. ●Project orientation for stakeholders include component on gender and development. ●PCU, PIUs and VDCs are trained on gender and development in the urban water supply and sanitation sector. ●Support MPWT recruit and promote women for leadership positions within the ministry. ●Distribute the GAP and a brief explanation of the project gender policy to PCU and PIU staff. ●PCU and each PIU to monitor implementation of the GAP, including gender sensitivity and disaggregated data in project reports. ●PCU to ensure that gender issues are addressed in all project activities and strategies and actions are taken to promote equitable benefits for women and men. ●Consulting services include 4 person-months international and 12 person-months national gender and social specialists. ●Encourage involvement of LWU in the Project (i.e., as a WSRC member)

GAP = gender action plan, GDCF = gender and development cooperation fund, LWU = Lao Women’s Union, MPWT = Ministry of Public Works and Transport, PCU = project coordination unit, PIU = project implementation unit, PNP = provincial nam papa (water supply utility), WASA = Water Supply Authority, WSD = Water Supply Division, WSRC = Water Supply Regulatory Committee, VDC = Village Development Committee.

1. Implementation arrangements and estimated costs of the GAP have been integrated into the overall arrangements and total budget of the Project. The PCU and PIUs will be responsible for implementing and monitoring the GAP. The international and national gender and social consultants will help conduct gender awareness trainings for project units, establish gender-disaggregated indicators for project performance monitoring and evaluation system, and will coordinate with other specialists during subproject preparations and implementations. The PCU will include information about progress of GAP activities in quarterly progress reports prepared and submitted to ADB and the Government. The PIUs will submit gender updates to the PCU prior to preparation of these reports.

20 Appendix 3

20 A

ppendix 1

COST ESTIMATES AND FINANCING PLAN

Table A6.1: Cost Estimates ($’000)

Output Amount I. Project Base Cost Output A. Strengthened Urban Water Supply and Sanitation Sector

1. Strengthened Sector Planning, Management and Regulation 470.0 2. Improved PNP Sustainability 1,300.0 3. Human Resources Strategy for Urban Water Sector 150.0

Subtotal A 1,920.0 B. Developed and Rehabilitated Water Supply Systemsa

1. Water Supply Development 12,500.0 2. Water Supply Rehabilitation 500.0

Subtotal B 13,000.0 C. Improved Drainage and Public Sanitation

1. Drainage Works 862.0 2. Public Sanitation 425.0

Subtotal C 1,287.0 D. Enhanced Community Action and Participation

1. Community Information and Participation Program 450.0 2. Village Environmental Improvements 1,080.0

Subtotal D 1,530.0 E. Enhanced Gender Equity in Urban Water Supply and Sanitation

1. Special Scholarships 180.0 2. Gender mainstreaming in PNPs 130.0 3. Knowledge Management 20.0 4. Consultants and Workshop 130.0

Subtotal E 460.0 F. Improved Capacity for Project Implementation and O&M

1. Consulting services 2,800.0 2. Capacity Development for O&M 290.0 3. Support to PCU and PIUs 1,300.0 4. Surveys and Investigation Contracts 340.0

Subtotal F 4,730.0 Total Base Cost b 22,927.0

II. Contingencies 1. Physical Contingency c 1,470.0

2. Price Contingency d 1,743.0 Total Contingencies 3,213.0

Total Cost 26,140.0 O&M = operation and maintenance, PCU = project coordination unit, PIU = project implementation unit, PNP = provincial nam papas. a The Government will relend part of the proceeds from ADB’s Special Funds resources, equal to 30% of capital

investment costs of its respective water supply system, to each PNP. The balance of 70% of the cost of the water supply schemes will be provided to the PNPs as a grant.

b Includes taxes and duties estimated at $2.1 million. c In September 2008 prices. d Physical contingencies computed at 10% for civil works and equipment, and 5% on consulting services. Source: Asian Development Bank estimates.

Appendix 3

21

Table A6.2: Detailed Cost Estimate by Financier ($ million)

ADB Government of Australia GDCF Beneficiaries Government of Lao

No Amount % of Cost % of Cost Amount % of Cost Amount % of Cost Amount % of Cost Category Amount Category Category Category Category

A. Investment Costs

1 Civil Works

a. Output 2: Developed and Rehabilited water supply System 11.17 11.17 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

b. Output 3: Improvement drainage and public sanitation 1.09 1.09 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

c. Output 4.2 a: Village environmental Improvement (VEI) 1.53 1.22 80 0.00 0.00 0.00 0.00 0.16 10.2 0.16 10.2

d. Output 4.2b: VEI (household toitlets) 0.19 0.19 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 Equipment 2.50 2.50 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 Environment and Social Mitigation a. Land Acquisition and resettlement 0.24 0.00 0.00 0.00 0.00 0.00 0.00 0.24 100 b. Environmental management 0.05 0.05 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4 Consultants a. Sector Strengthening 1.40 1.40 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 b. Project Implementation 2.77 2.77 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 c. Capacity development for O&M 0.29 0.29 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 d. Surveys and Investifations 0.34 0.34 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5 Scholars 0.10 0.10 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6 Workshops 0.30 0.30 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7 GDCF-supporrted activities

a. Special scholarships for female HS Graduates 0.18 0.00 0.00 0.00 0.00 0.18 100 0.00 0.00 0.00 0.00

b. PNP gender mainstreaming activities 0.13 0.00 0.00 0.00 0.00 0.13 100 0.00 0.00 0.00 0.00 c. Knowledge management 0.02 0.00 0.00 0.00 0.00 0.02 100 0.00 0.00 0.00 0.00 d. Consultants 0.13 0.00 0.00 0.00 0.00 0.13 100 0.00 0.00 0.00 0.00 8 Taxes and Duties 2.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.08 100 Subtotal (A) 24.51 21.42 87.3 0.00 0.00 0.46 1.8 0.16 0.6 2.48 10.0

B. Recurrent Costs ( included all

incremental costs) 1.30 1.30 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Subtotal (B) 1.30 1.30 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Base Cost 25.81 22.72 88.0 0.00 0.00 0.46 1.8 0.16 0.6 2.48 0.10

C Contingencies 0.33 0.28 85.0 0.00 0.00 0.04 15.0 0.00 000 0.00 0.00 Total Project Costs 26.14 23.00 87.9 0.00 0.00 0.50 1.9 0.16 0.7 2.48 9.5 % Total Project Costs 100 87.3 1.9 0.7 9.5

22 Appendix 3

22 Appendix 1

ADB=Asian Development Bank, HS=high school, GDCF=Gender and Development Cooperation Fund, O&M=operation and maintenance. a This amount includes ADB’s administration fee, audit cost, bank charges, and provision for foreign exchange fluctuations (if any) to the extent that these items are not

covered by the interest and investment income earned on this grant, or any additional grant contribution by the Government of Australia. b The Government will relend part of the proceeds from ADB’s Special Funds resources, equal to 30% of capital investment costs of its respective water supply system,

to each PNP through a subproject loan agreement acceptable to ADB. The balance of 70% of the cost of the water supply schemes will be provided to the PNPs as a grant.

c A grant of $100 will be provided for each poor household that elect to connect to piped water to construct pour-flush latrine. Source: ADB estimates. Note: AusAID has withdrawn its intent to co-finance.

Appendix 4 23

PROJECT MANAGEMENT AND FUND FLOW ARRANGEMENTS Figure A7.1: Project Organization Structure

Sources: ADB and EA.

Ministry of Public Works and Transport (MPWT)

Department of Housing and

Urban Planning (DHUP)

Project Coordination Unit (PCU)

Asian Development BankGovernment of Lao PDR

Project Steering Committee (PSC)

Provincial Governor

Water Supply Regulatory

Committee (WSRC)

Water Supply Agency (WASA)

Water Supply Division (WSD)

Water Supply Utilities (PNPs)

Out

put 1

and

5

Out

puts

2, 3

, 4, 5

and

6

District Governor’s Office

Other agencies and/or mass organizations

Provincial Project Steering Committee

(PPSC)

Water Supply Utility (PNP)

Village Committees

C

onsu

ltant

s

Department of Public Works and Transport

(DPWT) Project Implementation

Unit (PIU)

Lao Women’s Union

24 Appendix 4

24 A

ppendix 1

Figure A7.2: Project Funds Flow Arrangements

Subproject loan

Counterpart fund payments

Direct ADB payments

Imprest payments

Submits replenishment/ liquidation

Deposits advance/ replenishment

Deposits advance/replenishment

Submits application for advance/replenishment/liquidation ADB

MOF

Imprest Accounta

PCU

Second Generation Imprest Accounta

PIUb

Conduit Subproject Accountc

Suppliers

Contractors Consultants

MOF

Other Bank Accounts

PNPs

Sign

ed S

ubpr

ojec

t loa

n ag

reem

ent

Appendix 5 25

Activity1 2 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Overall Project PhasingGroup 1& 2 (each group consists of about 3 subprojects)Group 3 & 4 (each group consists of about 3 subprojects)

I Output 1 - Strengthened Urban Water Supply and Sanitation Sector Output 1.1. Institutional Strengthening of WSD, WSRC/WASA and DPWT

1.1.1. Mobilize and establish sector strengthening consultants1.1.2. Strengthen capacities of WSRC/WASA, WSD, and DPWT1.1.3. Raise awareness of key stakeholders on the value of a sector regulator 1.1.4. Prepare and dissiminate key sector planning and regulatory guidelines

Output 1.2. Actions to Improve PNP Sustainability1.2.1. Undertake institutional assessments of project PNPs as part of corporatization process1.2.2. Assist to formulate specific action plans to improve PNP performance and sustainability1.2.3. Prepare 3-year rolling corporate plans

1.2.4. Obtain government approval to the corporate/action plans 1.2.5. Implement the specific action plans and corporate plans for PNPsOutput 1.3. Scholarship Program for Water Supply Sector Engineers 1.3.1. Develop guidelines and eligibility criteria for scholarships

1.3.2. Obtain approval from Ministry of Education and Prime Minister’s Office1.3.3. Implement scholarship program

II Output 2 - Developed and Rehabilitated Water Supply Systems

2.1. Update/prepare feasibility studies & appraisal reports. Obtain GOL, ADB approvals. 2.2. Surveys and detailed design of water supply and drainage works

2.3. Prequalify tenderers. Call, evaluate and award tenders 2.4. Detailed survey, design and clearance of UXO. Land acquisition

2.5. Construct and commission water supply systems and drainage works2.6. Execute SLA, MOA and issue sanitation regulations

III Output 3 - Improved Drainage and Public Sanitation

3.1. Update/prepare feasibility studies & appraisal reports. Obtain GOL, ADB approvals. 3.2. Surveys and detailed design of water supply and drainage works

3.3. Prequalify tenderers. Call, evaluate and award tenders 3.4. Detailed survey, design and clearance of UXO. Land acquisition 3.5. Construct and commission water supply systems and drainage works

20142012 20132008 2009 2010 2011

G1G2

G3G4

G1

G1

IMPLEMENTATION SCHEDULE

26 A

ppendix 3

Activity1 2 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

IV Output 4 - Enhanced Community Action and Participation Output 4.1. Community Information & Participation Program

4.1.1. PCU assists DPWT establish CIPP contract (if applicable) and prepare community participation plans

4.1.2 PIU or contracted organization assists VDCs prepare rolling work plan for CIPP 4.1.3. PIU or contracted organization undertakes community mobilization, participatory workshops, meetings & inform stakeholders4.1.4. PIU or contracted organization assists VDCs, LWU (or other group), and lead agencies undertake baseline surveys incl vilalge information and health needs assessment

4.1.5. Design and implement education, awareness, training, meetings & media events4.1.6. Undertake monitoring of project activities and updating of rolling work plans 4.1.7. Undertake final evaluation of CIPP activities

Output 4.2. Household and Village Environmental Improvements 4.2.1. Undertake community needs assessment and prioritization 4.2.2. Participatory identification and testing of VEI and sanitation grant 4.2.3. Prepare and agree plan for O&M of village improvements

4.2.4. Implement household and village improvements

V Output 5 - Enhanced Gender Equity in Urban Water Supply and Sanitation 5.1. Develop guidelines and selection criteria for special merit-based scholarships program 5.2. Award the special scholarships by mid-2010 5.3. Prepare and execute guidelines for the PNP gender empowerment program 5.4. Prepare knowledge management products on gender and on the sector

VI Output 6 - Improved Capacity for Project Implementation and O&M6.1. Establish PCU and PIUs and recruit consultants

6.2. Orientation and initial training of PCU, PIU and other stakeholders 6.3. Implementation assistance and support to PCU and PIUs 6.4. Assess needs, develop capacities for O&M - BNPs, OPWTs,communities

6.5. Project management and administration

2012 2013 20142008 2009 2010 2011

G1

G1

Note: For clarity, detailed schedule is shown for Group 1 only. Schedules for Groups 2, 3 and 4 overlap and are similar to the schedule for Group 1. Legend: Continuous Activity Intermittent Activity Summary Source: ADB and EA estimates.

Appendix 6 27

CONSULTING SERVICES

OUTLINE AND DETAILED TERMS OF REFERENCE

A. Outline Terms of Reference for Consulting Services 1. Consulting services for the Small Towns Water Supply and Sanitation Sector Project (STWSP) will be provided under a single consulting package consisting of international and national consultants. A total of 859 person-months of consulting services (124 person-months international and 735 person-months national) will support project implementation from 2009 to 2013. Indicative consulting services are shown in Table A9.1. Consulting services will be engaged through a firm in accordance with the ADB’s Guidelines on the Use of Consultants by Asian Development Bank and Its Borrower (February 2007, as amended from time to time) through the quality- and cost-based selection (QCBS) method. The weighting will follow the standard quality–cost ratio of 80:20. The firm will be recruited by the project coordination unit (PCU), comprising of international and national consultants. The PCU will recruit national consultants or academics separately to undertake external monitoring of project activities. The PCU will contract the Lao Women’s Union (quasi-Government agency) in each of the districts to implement the Community Information and Participation Program (CIPP), and will recruit two gender consultants on an CONindividual basis to assist with the Gender and Development Cooperation Fund (GDCF) activities. 1. To ensure that all project outputs are integrated, the consulting services will be managed by a single Team Leader reporting to the PCU. Monthly coordination meetings will be held by the PCU and others including the Water Supply Division (WSD), Water Supply Regulatory Committee (WSRC) and its Secretariat, Water Supply Authority (WASA). The consultants will be based in the PCU office in Vientiane, with representatives stationed in each province to work with PIUs and provincial Nam Papas (PNPs) during the project construction stage. Consulting services will build on assistance provided under the Northern and Central Regions Water Supply and Sanitation Sector Project (NCRWSSP). 2. Consulting services for sector strengthening (Output 1) will support WSRC/WASA and for WSD in their respective roles as a sector regulatory body and a sector planning division. Provincial departments of public works and transport (DPWT) will be supported to strengthen its role as the provincial urban water supply manager and planner in the province. 3. Consulting services will help strengthen the capacity of WSRC/WASA to effectively regulate and monitor the sector by assisting WSRC/WASA: (i) develop and implement an annual consultation plan to increase the awareness of Ministries, provincial governments and PNPs on the importance of sector regulation; (ii) guide PNPs to develop corporate plans with respect to regulatory matters; (iii) assist PNPs develop an operating and regulation contract (as part of the memorandum of agreement); (iv) prepare a PNP water quality reference sheet which clarifies the assessment methodology and frequency of collection of raw water flows and MOH’s water quality parameters; (iv) assist PNPs to incorporate a mechanism for monitoring consumer complaints into PNP corporate plans; and (vi) prepare Annual Report on PNP Performance, and the Tariff Review for 2011-2013. The Project will also support the development of the regulatory system during the initial years by assisting (i) WSRC meet once twice a year and prepare its annual report against its regulatory activities for the year; and (ii) WASA prepare bi-annual progress reports to WSRC. 4. Consulting services will also strengthened WSD/DHUP capacity to plan, manage and formulate policy for the urban water supply sector. Assistance will be provided to (i) develop

28 Appendix 6

the urban water supply and sanitation sector strategy (2009-2020); (ii) develop guidelines to facilitate private sector investment; (iii) establish a mechanism for enhanced inter-agency and donor coordination; (iv) develop a human resources strategy and scholarship program (see Output 1.3); (v) engage in sector planning and development activities related to the preparation of PNP corporate plans; and (vi) update the sector investment plan, as needed. 5. The consultants, WSD and WASA will assist project PNPs improve their sustainability and operational performance. They will review the existing framework for corporatization, including relevant laws and procedures in place. They will also evaluate the process for the first 4 PNPs (Oudomxai, Xayaboury, Luang Prabang, Luang Namtha PNPs) to identify lessons and determine the types of legislation (if any) necessary for facilitating the process with the next group of PNPs. If required, the consultants will work with the appropriate entity to ensure one is prepared and submitted for approval. The consultants will also assist each project PNP to formulate and implement immediate actions and a corporate plan, with a rolling action plan. The action plan will cover the PNP’s legal framework and mandate, management, commercial, financial, technical, and human resources development, and will include short and medium-term water supply investment plans for each of the PNP’s water supply systems. The consultants and Lao water industry professionals will assist participating PNPs improve their operational and financial efficiency through financial, business, technical and management support. Support will be for 3 years from 2009 to 2013, following the capacity development plan in Appendix 6. 6. Consulting services for infrastructure development and O&M.s The consultants will assist the PCU and PIUs to prepare detailed feasibility studies (FS), subproject appraisal reports (essentially summary FS), detailed engineering design and tender documentation for about 13 subprojects. The feasibility studies will require inputs from a range of specialists and will involve the following: (i) undertake detailed engineering, financial, economic, institutional, social, land acquisition and resettlement and environmental assessments; (ii) undertake least cost analyses of subproject alternatives; (iii) prepare cost estimates and financing plans; (iv) undertake tariff calculations and recommend tariffs consistent with the Project’s cost recovery objectives; (v) carry out willingness-to-pay analysis following contingent valuation method; (vi) undertake a financial management assessment of the PNPs to determine annual cash flow, including debt service capacity; (vii) assess PNPs capacity to operate and maintain existing systems; (viii) prepare resettlement plans and social impact assessments; and (ix) assess institutional arrangements and capacity of Project entities. 7. FS will be based on the ones prepared for the 3 sample subprojects during preparation.1 Consultants will ensure that (i) the Executive Summary of each FS report and subproject appraisal report; (ii) the initial environmental examination and social impact assessment for each subproject; and (iii) land acquisition and compensation plan and information brochure for each subproject are translated to the Lao language. The PCU and PIUs will distribute FS documents to provincial and district stakeholders. They will also assist the PCU and PIUs prepare specifications and contract documents for groundwater investigations, topographic surveys, UXO surveys by specialist companies, and geotechnical investigations for detailed design.2 8. In addition, consultants will assist the district agencies (Office of Public Works and Transport [OPWT] and branch provincial nam papas [BNPs]) develop their capacity to manage water supply

1 An appraisal report for each of the 3 subprojects will be submitted to the Government and ADB for approval, which

will be reviewed and updated by the consultants at the start of the project. 2 Groundwater investigations and UXO clearance will be included in the consultancy contract as provisional cost items

to be subcontracted because the scope of such works is uncertain.

Appendix 6 29

and sanitation infrastructure and services in a sustainable manner. The consultants will assist the OPWT: (i) prepare district level sanitation guidelines for approval; (ii) review agreements with villagers for joint O&M of the household sanitation and village environmental improvements; and (iii) prepare project-specific O&M plans for the drainage output of the project. The consultants will assist the PNPs and their branch representatives: (ii) prepare system-specific O&M plans, including reporting formats and duty statements. Consultants will prepare and deliver training programs for district agencies in engineering, accounting, social and community development including gender training, and safe guard information and procedures.

Table SAJ.1: Indicative Consulting Services

Type Output 1 Output 5

Output 2, 3 & 6 Consulting services

Int’l Nat’l

Total p-m

1.1 (a) 1.1 (b) 1.2 1.3 (GDFC) FS O&M 1 Overall Project Management

Team Leader Design/Construction/ Sector Reform 1 27 2 1 3 0.5 20 0.5

Deputy Team Leader/Design/ 2 48 5 43 2 Sector Strengthening

WS Management Expert/Training Coordinator 1 23 4 4 14 1

Human Resources Development and Communication Specialists 1 6 5 1

1 10.5 6.5 4 SOE reform/legal specialist 1 4 4 Financial/Accounting Specialists 1 7 2 5 1 23.5 7 16.5 WS Management Specialist 1 29 9 20 Information Technology Expert 1 17.5 2 2 7.5 6 Local Accounting Specialists 11 33 33 AUTOCAD Drafter/Trainer 1 11 11

3 Project Implementation Project accounting/MIS Specialist 1 10 10 Project management/PPMS 1 18 18 Gender/Social Specialistsa 1 5 1 4 1 13 2 11 Water Supply Engineers 1 14 14 2 62.5 6.5 56 Sanitation/Drainage Engineer 1 17 17 Economist and Financial Analyst 1 7 7 Electrical and Mechanical Engineer 1 7 7 Structural Engineer 1 7 7 Electrical Engineer 1 7 7 Geotechnical Engineer 1 4 4 Construction Engineer 2 54 54 Construction Supervisors 6 201 201 Resettlement Specialists 1 5 5 1 8 8 Environmental Specialists 1 5 5 1 8 8 Community Development Adviser 1 6 4 2

Community Development/Training Officers 2 103 90 13

IE&C Advisor 1 6 6 4 Capacity Development for O&M Training Coordinator/O&M Specialist 1 5 5

30 Appendix 6

Type Output 1 Output 5

Output 2, 3 & 6 Consulting services

Int’l Nat’l

Total p-m

1.1 (a) 1.1 (b) 1.2 1.3 (GDFC) FS O&M O&M Engineers 1 32 32 5 GDCF-supported Activities Gender Specialist 1 3 3 1 12 12 TOTALS 14-I 42-N 859 20 16 137 6.5 15 632 52.5

FS = feasibility study, GDCF =gender and development cooperation fund, MIS = management information system, O&M= operation and maintenance, WS = water supply. B. Detailed Terms of Reference for Consulting Services

1. Introduction 10. Consulting services for the Small Towns Water Supply and Sanitation Sector Project (STWSP) will be provided by the Project Consultants under one consulting package through associations of international and domestic consultants. The consulting services will cover a period of five (5) years from 2009 to 2013. In addition to this single package, the Project Coordination Unit (PCU) will recruit national consultants, NGOs or academics separately to undertake independent monitoring of resettlement activities. The required consulting services are shown in Table 1 and are described below. Consultants whose services are provided under Bank financing will be selected and engaged in accordance with the ADB’s Guidelines on the Use of Consultants. 11. A total of 859 person-months of consulting services (124 person-months international and 735 person-months national) will support project implementation from 2009 to 2013. To ensure that all Project outputs are properly integrated and coordinated, the consulting services will be managed by a single Team Leader reporting to the PCU. Monthly coordination meetings will be held between the PCU, Water Supply Division (WSD), Water Supply Regulatory Committee (WSRC), its Secretariat: the Water Supply Authority (WASA), and the consultants to ensure proper coordination of the Project components and to inform all parties of the activities of other development partners in the water sector. This arrangement is necessary to ensure that the consulting services are efficient, effective and properly coordinated. The Team Leader will coordinate between the components of the Project and between the various levels of Government administration – central, provincial, district and village. 12. The Project Consultants’ services will include: (i) Output 5 - Project Implementation Assistance and Capacity Development for Operation and Maintenance for about 11 subprojects in 9 provinces; and (ii) Output 1 - Strengthening Sector Planning, Regulation and Management of central government agencies (WSD, WSRC/WASA) and provincial level agencies (DPWTs, PNPs) in 11 provinces.

2. Output 5: Project Implementation Assistance and Capacity Development

a. General Requirements

13. The project implementation assistance will assist the central PCU, project implementation units (PIUs) and village development committees to implement the water supply development and rehabilitation (Output 2), improved drainage (Output 3) and community action and participation (Output 4). To minimize costs and enhance communication, the Project Consultants will be based in the PCU office in Vientiane, and will have representatives stationed in each province to work with PIUs and provincial Nam Papas (PNPs) during the project construction stage.

Appendix 6 31

14. The Project Consultants will assist the PCU and PIUs to undertake project management, engineering investigations and surveys, feasibility studies, design and construction supervision of water supply systems, contract administration, drainage and sanitation improvements, resettlement, environmental management and monitoring, community planning, health awareness support program, and village environmental improvements. They will engage specialist subcontractors for: (i) groundwater surveys as necessary including drilling and pump tests; (ii) topographical surveys for feasibility studies and design; (iii) water quality testing for feasibility, design and monitoring during construction; (iv) socio-economic surveys; (v) geotechnical investigations and soils testing for feasibility studies and design, and; (vi) unexploded ordnance (UXO) survey and clearance. The subcontracts for groundwater surveys, water quality sampling and testing and UXO survey and clearance will be included in the main consultancy contract as provisional cost items and will be subject to competitive bidding during project implementation. 15. The capacity development program (CDP) will provide capacity development for the branch Nam Papas (BNPs) and district offices of public works and transport (OPWT) to improve their capacities to manage urban infrastructure and services in the Project towns. It will also provide support to village development committees (VDCs) to enhance their capacities to operate and maintain village infrastructure and their on-site water and sanitation facilities.

3. Arrangements for Feasibility, Detailed Design and Construction Supervision

16. The Project Consultants will assist the EA, PCU and PIUs to prepare detailed feasibility studies, subproject appraisal reports (essentially summary feasibility studies), detailed engineering design and tender documentation for about 11 subprojects. The feasibility studies will require inputs from a range of specialists and will involve the following: (i) undertake detailed engineering, financial, economic, institutional, social, land acquisition and resettlement and environmental assessments; (ii) undertake least cost analyses of subproject alternatives; (iii) prepare cost estimates and financing plans; (iv) undertake tariff calculations and recommend tariffs consistent with the Project’s cost recovery objectives; (v) carry out willingness-to-pay analysis following contingent valuation method; (vi) prepare resettlement plans and social impact assessments; and (vii) assess institutional arrangements and capacity of Project entities. The feasibility studies will be based on the detailed feasibility studies for sample subprojects prepared during the project preparation (TA4875-LAO), which will be reviewed and updated by the consultants at the start of the project. 17. Detailed designs will be prepared by national consultants under the guidance and instruction of the international consultants. Bidding documents for international competitive bidding (ICB) will be prepared by the international consultant, while those for national competitive bidding (NCB) will be prepared in local language by the national consultants under the guidance of the international consultants. During the construction period, national consultants will have primary responsibility for day-to-day inspection and supervision while the international consultant will oversee and monitor the overall progress of the work, coordinate with the EA, and prepare progress reports that PCU will review and submit to ADB. 18. The Project Consultants will prepare specifications and contract documents for groundwater investigations, topographic surveys, UXO surveys by specialist companies, and geotechnical investigations required for detailed design. Groundwater investigations will be undertaken by international firms while the other investigations will be let to domestic firms having the necessary expertise.

32 Appendix 6

4. OUTPUT 1: STRENGTHENING SECTOR PLANNING, REGULATION &

MANAGEMENT 19. The Project Consultants will provide consulting services to strengthen the urban water supply sector. The services will cover: (i) institutional strengthening of WSD, WSRC/WASA, and the provincial departments of public works and transport (DPWT) and; (ii) improving PNP performance and sustainability, and; (iii) developing a human resource strategy for the urban water sector including a scholarship program for water supply engineers. 20. The Team Leader will have overall responsibility for managing the services for sector strengthening. The Water Supply Management Expert will be responsible for: (i) planning, coordinating, scheduling and managing day-to-day activities and reporting on the sector strengthening; (ii) managing, scheduling and coordinating consulting personnel involved in the sector strengthening activities, and; (ii) monitoring and reporting frequently to the Team Leader, ADB and other partners on developments in the sector. 21. The institutional strengthening of WSD and WSRC (with WASA as its secretariat) will build on assistance provided to WSD and WASA under the Northern and Central Regions Water Supply and Sanitation Sector Project (NCRWSSP), which is scheduled for completion at the end of 2008. It will provide consultant support and targeted training over the period 2009-2013. It will strengthen WSD’s capacity to formulate policy, plan and develop the water supply sector, including helping WSD to develop a human resources development strategy for the urban water sector. The WSRC/WASA strengthening will raise awareness of Ministries, provincial governments and PNPs of the objectives and benefits of sector regulation; disseminate regulatory guidelines and procedures to the PNPs; assist WASA, as the Secretariat of the WSRC, to undertake its core regulatory compliance monitoring functions3, Each DPWT will be strengthened to better fulfill its role as the provincial urban water supply manager and planner. 22. The actions to improve PNP sustainability (IPS) will assist Project PNPs to rapidly improve their sustainability and operational performance, with support from consultants, WSD and WASA. It will assist each Project PNP to formulate and implement an immediate action plan and corporate plan to enhance its sustainability and improve performance. The action plan will cover the PNP’s legal framework and mandate, management, financial, technical, and human resources development, and will include short and medium-term water supply investment plans for each of the PNP’s water supply systems. IPS will provide technical and management support by consultants and by Lao water industry professionals for each Project PNP for up to three years within the Project period 2009-13. It will include regional workshops to facilitate sharing of experiences, lessons learned and networking between PNPs. 23. The scholarship program for water supply engineers: aims to increase the number of qualified water supply engineers within the sector in Lao PDR. Shortage of qualified and dedicated water supply engineers constrains sector sustainability, particularly in the provinces where skilled personnel are scarce. With consultants support, the WSD will develop eligibility criteria and procedures for the scholarship program, and implement the scholarship program over 2010-2013. The scholarship program will form part of the human resources development strategy for the sector.

3 Including PNP auditing, data collection and preparing annual plans and the PNP tariff review for 2011-2013.

Appendix 6 33

24. The Project Consultants will: (i) monitor ongoing developments in the water sector, such as drafting of the Water Law, implementation of the Enterprise Law, GOL’s SOE reform program, activities of WASA and the WSRC, and; (ii) keep ADB and concerned development partners informed of such developments or activities as they occur. Regular progress reports will include not only a report on activities, outputs and disbursements, but also an assessment of the effectiveness of capacity development against measurable performance indicators and a status report on developments and activities in the urban water sector. The Government, ADB and concerned development partners will review the sector strengthening consulting services periodically and may require the services to be re-scoped from time-to-time, depending on the effectiveness of the capacity development and developments in the sector. 25. The scope of the institutional strengthening activities to be undertaken will, to some extent, depend on the outcomes of the current NCRWSSP Package A support program that will be completed at end 2008. The completion report from that program, incorporating an evaluation of effectiveness, lessons learned, and updated training plans and action plans for WSD and WASA, will form the basis for refining STWSP scope. Similarly, the scope of the IPS program will also need to be refined based on the progress of the NCRWSSP Package B implementation consultant’s progress, particularly with respect to their business and corporate planning initiatives. Eight of the province PNPs involved in the NCRWSSP will also participate in STWSP. At commencement of Project implementation, the Project Consultants will prepare a revised scope of works and activities action plan and schedule and document this in an Inception Report.

5. Consultants for Overall Project Management

a. Team Leader-Design/Construction and Sector Reform (International) 26. The Team Leader will manage and coordinate the overall consulting services and provide project management support to the EA, PCU and PIUs. He/she will provide technical and capacity development inputs to support the various technical and management specialists and provide advice on water sector regulation and water sector issues to Government, ADB and team members. The Team Leader will be a water supply engineer with additional broad experience in water utility management, water sector planning, management and reform. He/she will have a minimum of 15 years experience in water supply development, including at least two years experience in South East Asian countries. Specific tasks include, but are not limited to:

(i) Manage, coordinate and supervise all consulting services for the Project to ensure that (a) inputs and activities of both the international and national consultants are of high quality and effective; and (b) all consulting services and project components are fully integrated and properly coordinated.

(ii) Assist the PCU and PIUs to manage all aspects of project implementation, including: (a) overall project planning, scheduling, management and coordination; (b) town and subproject selection; (c) feasibility studies, subproject preparation and appraisal; (d) detailed design and documentation; (e) calling, evaluating and awarding tenders; (f) construction supervision and management; (g) project monitoring; (e) environmental management and monitoring; (f) project accounting and reporting; and (g) monitoring program, progress and budgets.

(iii) Assist the PCU to assess the capacities of PIUs to implement the Project. Ensure that the PIUs (a) prepare clear job descriptions for key positions, and; (b) set up project accounts and reporting systems.

(iv) Conduct training of the Project PCU and PIUs on administrative procedures, project accounts, procurement, report preparation, benefit monitoring and evaluation, and ADB procedures.

34 Appendix 6

(v) Assist the PCU to conduct initial project orientation and information meetings with key stakeholders at central, provincial, district and village levels, and; ensure clear understanding by the stakeholders of the objectives, scope, organization and work plan of the Project, and their roles and responsibilities.

(vi) Assist the EA to prepare Subproject Loan Agreements (SLAs) and conduct workshops and meetings with concerned provincial government agencies;

(vii) Assist the provincial governments and PNPs to prepare Memoranda of Agreements (MOA) setting out the mandate, working arrangements, performance indicators and tariff principles for PNPs. MOA designed for the Northern and Central Regions Project may be refined for use.

(viii) Assist provincial and district governments to prepare sanitation regulations and source protection regulations and help the governments to develop an effective enforcement mechanisms for implementing the regulations.

(ix) Assist the PCU and PIUs to prepare operational budgets, disbursement projections, and withdrawal applications, and provide ongoing support for project accounting and reporting systems.

(x) Assist the PCU and PIUs to identify, prioritize, select, prepare and evaluate subprojects for each project town, according to the selection processes and criteria agreed between the Government and the Bank.

(xi) Assist the PCU and WSD to pilot the development of a public-private partnership involving small-scale independent provider and PNP in one selected subproject town;

(xii) Supervise the capacity development training consultants and ensure that the training program is timely implemented.

(xiii) Together with the O&M consultants, assist the PCU in addressing O&M issues in subprojects and at the broader provincial level.

(xiv) Participate in the mid-term reviews and assist with preparing the project completion report.

(xv) Manage the preparation and submission of all required reports and documents in format and substance acceptable to Government and ADB.

(xvi) Assist the PCU and PIUs to: (a) shortlist suppliers and prequalify contractors; (b) establish bid evaluation procedures and criteria; (c) undertake bid evaluation; (d) prepare tender evaluation report and draft contract; and (e) undertake contract negotiations.

(xvii) Prepare, monitor, and update as necessary design and construction schedules with recommendations on construction supervision and management, including the supervision of the work carried out under force account. (i.e. house connections)

(xviii) Develop a quality assurance program for monitoring construction, equipment, materials, and services. Inspect materials and equipment delivered to construction sites and witness tests of materials and equipment to be incorporated in the works.

(xix) Supervise, inspect, measure, and control the quality of the construction works and the installation of equipment to insure compliance with contract drawings and specifications, and make recommendations to the PCU on the issuance of the certificates of completion.

(xx) Assist the PCU and PIUs to: (a) administer the construction and procurement contracts; (b) commission and evaluate the performance of completed facilities and new equipment; and (c) review and validate any proposed design modification.

(xxi) Assist the PCU and PCUs to prepare progress reports, project completion report and PMMS reports.

(xxii) Oversee the integration of gender equity in to all elements of the project including gender awareness training, equal opportunities for men and women in training and

Appendix 6 35

capacity development, gender sensitivity in infrastructure design, and sex-disaggregated monitoring data.

b. Deputy Team Leader-Design/Construction (National)

27. The Deputy Team Leader will help the Team Leader to implement the Project and provide specialist inputs in water supply and sanitation engineering. The expert will assist the Team Leader to manage and coordinate the inputs of consultants and specialists to the feasibility studies, subproject appraisal reports, engineering designs and documentation, and to manage the construction supervision. Specific tasks include, but are not limited to:

(i) Assist the PCU and PIUs to manage all aspects of project implementation, including: (a) overall project planning, scheduling, management and coordination; (b) town and subproject selection; (c) feasibility studies, subproject preparation and appraisal; (d) detailed design and documentation, and; (e) calling, evaluating and awarding tenders; (f) monitoring progress and costs, and; (g) project reporting.

(ii) Assist the PCU and PIUs with construction supervision and contract management. Manage the inputs of the consultant team engaged in construction supervision activities. Undertake periodic inspections of constriction to ensure the quality of the works.

(iii) Ensure the quality of designs and documents and provide timely inputs to the team leader for the required reports and documents.

(iv) Assist the PCU and PIUs to review and update three subproject feasibility studies prepared under the PPTA, with assistance of other consultants and specialists;

(v) Assist the PCU and PIUs to prepare detailed feasibility studies for about another 8 subprojects , with assistance of other consultants and specialists;

(vi) Assist the PCU and PIUs to prepare subproject appraisal reports for about 11 subprojects, in accordance with the agreed procedures for the project;

(vii) Undertake an initial rapid assessment of potential raw water sources for all candidate subprojects and prepare a comprehensive investigations program to confirm water supply yield and quality of the preferred sources.

(viii) Identify potential groundwater sources, prepare contract documents for groundwater investigations, supervise the investigations and assess and report on the results.

(ix) Assist the PCU and PIUs to: (a) identify requirements for topographic surveys, geotechnical investigations, water quality testing to obtain necessary information for subproject design and monitoring; (b) specify the necessary investigations, prepare the contract documents and call quotations; (c) evaluate and supervise the investigation and survey contracts, and; (d) assess and report on the data obtained.

(x) Assist the PCU and PIUs to: identify the need for UXO survey. These will be required for subprojects having a significant potential for UXO contamination. Specify the scope of investigations, prepare the contract documents and call quotations from national specialists; Supervise the investigation contracts, and report on the data obtained.

(xi) Undertake engineering assessments for about 11 WSS subprojects, recommend appropriate WSS technologies, taking into consideration economic development status, urban scale, population density, affordability, standards.

(xii) Manage the production of documents for feasibility studies, detailed engineering designs engineering specifications and drawings for all infrastructure and investigations contracts, with assistance of various specialists.

(xiii) Manage the preparation of feasibility level and detailed cost estimates.

36 Appendix 6

(xiv) Participate in capacity development and training programs; (xv) Participate in workshops and discussions with the EA, PCU, PNPs, and provincial

governments. Make presentations concerning the Project as required by the Team Leader.

6. Consultants for Sector Strengthening

a. Water Supply Management Expert/Training Coordinator (International) 28. The Water Supply Management Expert/ Training Coordinator (WSME) will plan and coordinate the consulting services for sector strengthening, reporting directly to the Team Leader (TL). The WSME will have tertiary qualifications in management or engineering and at least 10 years experience in a senior position in a water supply utility management with sound experience in managing a multi-disciplinary team and implementing similar projects in SE Asia. The WSME will coordinate and supervise the component consulting team, with the National Water Supply Management Specialist who will act as his/her Deputy, and ensure that inputs and activities of both the international and national consultants are of a high quality and effective. The WSME will take the lead role in: (a) management and coordination of the Component including facilitating orientation and progress workshops, all necessary reporting and liaison with other projects; (b) assisting WSD / WASA / DPWT and each PNP to plan, develop, implement, monitor and evaluate the overall capacity development program in close consultation with the International and National HRD specialists; (c) assist each PNP to prepare corporate plans through coordination of all PNP and team member inputs and outputs to the plan. Specific tasks include, but are not limited to:

(i) Working with the sector strengthening consulting team, assist each PNP to: (a) review and assess legal framework, organization, management, technical capacity, resources, operational conditions and financial performance to identify problems and constraints to development of each PNP as a SOE, (b) review the status and condition of each water supply system under each PNP management including all physical infrastructure, (civil works, pipe networks, mechanical and electrical plant and equipment), management, administration and operational systems and procedures; management, planning, implementation, budgeting of maintenance; (c) identify problems and constraints to development; (d) identify and analyze options, activities and costs to overcome the problems and constraints including immediate organizational, managerial, financial, billing and accounting systems; revenue, minor physical, technical and operational improvements, plant / operator specific manuals and guidelines, and equipment needs; and specific urgent training needs; and (e) identify sources of funds for implementation.

(ii) Present the findings of above analyses and discuss and confirm recommendations at workshops with PNP personnel, Administration Committee and provincial agency representatives;

(iii) Assist each PNP to formulate a prioritized and time-bound action plan aimed to make the PNP sustainable. Facilitate further workshop of the immediate action plan with all relevant provincial stakeholders and obtain Administration Committee approval to implement the plan;

(iv) Assist each PNP to implement and monitor all action plan activities, progress and achievement of targets, and effectiveness of the program related to key performance indicators;

Appendix 6 37

(v) Review: (a) progress and effectiveness evaluation of NCRWSSP Package A capacity development program and lessons learned; (b) NCRWSSP Package B capacity development approaches and impact on PNP performance, (c) impact of Subsidiary Loan Agreements and Memorandums of Understanding between provincial governments and PNPs; (d) existing training plans and action plans for WSD and WSRC/WASA. Identify gaps between expected and actual completion of activities related to these plans;

(vi) Review legal framework for the WSRC and WASA, actions by WSRC, minutes of Committee meetings, regulatory guidelines approved and implemented and status of independent financing of WASA,

(vii) Monitor developments in the water sector and keep the Team Leader, ADB and other development partners informed.

(viii) Facilitate Project Orientation workshops to discuss – (a) potential scope of the sector strengthening program, (b) evaluation of effectiveness of NCRWSSP CB program, (c) lessons learned, (d) WSD, WSRC/WASA and PNP action plans for next 5 years, (e) status of sector legal framework, (f) NCRWSSP capacity development approaches and impact on PNP performance, (g) approach and processes for IPS and involvement of WSD, WSRC/WASA, DPWT and PNP staff, (h) project progress and effectiveness monitoring and evaluation.

(ix) Facilitate regional workshops involving a number of PNPs in the IPS program to discuss progress, achievements and effectiveness; promote networking of the PNPs; document lessons learned and refine concepts, plans and activities for working with subsequent PNPs;

(x) Assist WSD and WSRC/WASA to update their 5-year action plans and develop detailed approach and plan for consultant advice, support and training / workshop activities,

(xi) Prepare project performance monitoring system (PPMS) including specific monitoring and evaluation framework for capacity development concentrating on effectiveness of the program,

(xii) Prepare Inception Report detailing findings from reviews, assessments and feed-back from orientation workshops, provide revised sector strengthening action plan and resources plan and facilitate Inception Workshop,

(xiii) Assist WSD, WSRC/WASA, DPWTs and PNPs prepare informal monthly reports to the PCU; and attend monthly coordination meetings arranged by PCU with other implementation teams,

(xiv) Prepare quarterly reports to PIA consultants / PCU in cooperation with WSD / WASA / DPWTs / PNPs,

(xv) Facilitate annual (end year) workshops – to monitor progress against activity action plans, evaluate capacity development effectiveness and refine the next years program,

(xvi) Prepare “mid-term” review and evaluation report and facilitate donor review mission, (xvii) Lead a team to prepare the completion report for the sector strengthening component

including evaluation of effectiveness of each activity, (xviii) Provide continual liaison and cooperation with other projects being implemented in the

sector; (xix) Assist WASA to prepare a detailed plan and materials for a series of central and

regional workshops to raise awareness of governance, provincial authorities and PNPs

38 Appendix 6

to appreciate requirements and benefits of regulation to PNPs and customers; implement participatory workshops - record results, evaluate responses and refine materials and approach as workshops proceed; and evaluate effectiveness of workshops and present findings and recommendations at final central workshop;

(xx) Provide support and on-job training to assist WSRC/WASA prepare outstanding regulatory guidelines and procedures or revise existing guidelines / procedures and implementing decisions;

(xxi) Assist WSRC/WASA to prepare a detailed plan and materials for a series of regional workshops to disseminate regulatory guidelines and procedures to the DPWTs and PNPs; implement participatory workshops - record results, evaluate responses and refine materials and approach as workshops proceed; and evaluate effectiveness of workshops and present findings and recommendations at annual progress workshops;

(xxii) Assist WSD and WSRC/WASA, with the National HRD Specialist to: (a) assess staff capabilities against job descriptions and position in organization and update staff duty statements as required, (b) undertake training needs assessments, (c) review the sources of training expertise (including consulting team members) and determine appropriate training modalities, (d) update / develop training plans to address training needs and develop and implement a program of capacity development to be provided under the Project including, for WSD, a longer-term approach to staff English language development, water supply and sanitation policy development, sector planning, master planning, project management and information technology, and for WSRC/WASA, a longer-term approach to staff English language development, water supply regulatory planning, compliance monitoring, management, financing and budgeting, and, (e) monitor and evaluate the effectiveness of training undertaken,

(xxiii) Assist each PNP to: (a) review human resources capacity, training plans and budgets, (b) improve strategy and plans and targeting of PNP priority training at the WTTC or local / regional colleges and, (c) monitor and evaluate implementation of urgent training determined from action plans (management, financial, specialist). Follow up activities to reinforce the training provided;

(xxiv) Update the capacity development programs periodically based on identified needs and lessons learned / feedback from training undertaken;

(xxv) Prepare, deliver and evaluate a series of formal training events in key topics such as water supply policy development, planning, management, regulation, project management etc. to WSD, WSRC/WASA, DPWTs and PNPs;

(xxvi) Through consultation at a series of 3 regional participatory workshops with key stakeholders, develop the overall “Actions for PNP Sustainability” (IPS) process, plan and program. Identify WSD, WSRC/WASA, DPWT and PNP staff to be involved, working arrangements and duty statements;

(xxvii) With senior PNP representative, coordinate team activities that are assisting each PNP to prepare elements of the corporate plan including: (a) organizational structure and reporting mechanisms, (b) strategic development plans, (c) financial management systems and financial plan, (d) human resources development plan, (e) operation and maintenance / asset management plans, (f) customer services plan, (g) management information systems;

Appendix 6 39

(xxviii) Assist each PNP to collate and incorporate all development planning elements into an overall corporate plan and facilitate a workshop with all relevant provincial stakeholders to obtain Administration Committee approval of the plan;

(xxix) Assist each PNP in the initial stages of corporate plan implementation; (xxx) Facilitate annual (mid year) regional workshops as a forum for discussion of corporate

plans including immediate action plans, achievement of targets and measures of effectiveness involving a number of PNPs in the IPS program;

(xxxi) Facilitate a study visit including training workshops to the Water Supply Utility in Phnom Penh concentrating on corporate planning and sustainability.

(xxxii) Provide guidance and supervision of NOME to provide on-the-job training and to prepare, deliver, evaluate and follow-up formal training courses for each Project PNPs on key identified aspects of O&M management, regular and periodic maintenance, asset management planning and budgeting, record and drawing systems;

(xxxiii) Assist each PNP to develop technical, asset management and O&M plans, budgets and record systems for each system under PNP control and integrate into corporate plan;

(xxxiv) Contribute to Project workshops, training events and reports as required by the WSME.

b. Human Resources Development (HRD) Specialist (International)

29. The International Human Resources Development Specialist will undertake the lead role in assisting WSD to develop and implement a HRD strategy for the WSS sector as a whole including the scholarship program. He/she will also assist each PNP to develop their HRD plans for incorporation into Corporate Plans. The Specialist will report to the PCU and work closely with the National HRD Specialist. Specific tasks include, but are not limited to:

(i) Assist WSD to develop a WSS sector human resources development plan; (ii) Development of a scholarship program for improving capacity in the sector,

including for water supply and environmental engineers. This will include: assisting WSD to review available water supply and environmental engineering and management courses available in Vientiane including enrollment procedures and curriculum; assisting WSD to: (a) develop scholarship criteria (including at least 30% of scholarships in all categories to be reserved for women), (b) promote the program to DHUP, DPWTs, PNPs and water supply private sector operators, (c) develop scholarship agreements and assess candidates sponsored, (d) prepare a program for implementation and, (e) prepare a financing mechanism and administration procedures; and (e) assisting WSD to develop a process to review scholarship candidate results annually with sponsors;

(iii) Facilitate arrangements for South East Asia regional conferences / training events for WSD and WSRC/WASA mid level staff in agency core functions,

(iv) Assist each Project PNP to review and assess any existing corporate planning, management, technical and human resource development plans or documentation,

(v) Assist each PNP to revise organizational structure, job descriptions, reporting mechanisms, lines of communications, and authority levels to make the structure more efficient and appropriate to commercial operations,

(vi) Assist each PNP to develop time-bound and costed short and medium-term human resources plans for integration into corporate plans;

40 Appendix 6

(vii) Contribute to Project workshops, training events and reports as required by the WSME.

c. Financial/Accounting Specialist (International)

30. The International Financial/Accounting Specialist will have a business management / accounting / finance and economics tertiary qualification from an internationally recognized institution with a minimum of 15 years experience in the water supply industry, and at least 10 years in the South East Asian environment. The specialist will report to the WSME and work closely with the national finance and accounting expert. Specific tasks include, but are not limited to:

(i) Review most recent WASA Annual Performance Reports and assess / analyze changes and trends in PNP corporate, management, financial and technical performance,

(ii) Provide guidance and support to the national finance and accounting expert in the review of PNP existing systems, policies and procedures on general accounting, customer billing and collection, financial planning and budgeting, inventory accounting, fixed assets accounting, financial information reporting and monitoring, and overall internal control of the PNPs; identification of weaknesses; formulation of recommendations for improvement; and preparation of improved financial management system and manual;

(iii) Provide guidance and support to the national finance and accounting expert in the preparation of a model, and refined, PNP Financial Management Manual detailing accounting policies, procedures, forms and report formats complete with individual accounts description and illustrative pro-forma journal entries covering all routine accounting, financial management, and related administrative activities;

(iv) Assist each PNP to develop a financial planning system and a 10 year financial plan for inclusion into each PNP’s Corporate Plan,

(v) Assist each PNP, with the WSME and WSME, to collate the components of the Corporate Plan into a coherent document in accordance with the WSRC/WASA guidelines,

(vi) Assist WASA in the preparation of the Annual Performance Report –checking and analysis of regulatory accounts, tariff information and technical and financial performance data from PNPs and preparation of Report text,

(vii) Assist WASA with support and on-job training to analyze supplier financial and technical performance data and prepare the Tariff Review (2011-2013) using the previous tariff review as the base reference document,

(viii) Assist WASA to establish a self-funding mechanism and develop administration and accounting procedures for WASA and Regulatory Committee operations,

(ix) Assist WASA in the preparation / revision of regulatory guidelines relating to corporate plans, tariffs, regulatory accounting, and compliance monitoring,

(x) Assist WASA, with the WSME and WSME, to plan, implement and evaluate effectiveness of a series of central and regional workshops to raise awareness of governance, provincial authorities and PNPs to appreciate requirements and benefits of regulation to PNPs and customers,

Appendix 6 41

(xi) Assist WASA, with WSME and WSME, to plan, implement, and evaluate effectiveness of a series of regional workshops to disseminate regulatory guidelines and procedures to the DPWTs and PNPs;

(xii) Contribute to Project workshops, training events and reports as required by the WSME.

d. Water Supply Management Specialist (National) 31. The National Water Supply Management Specialist will act as Deputy to the WSME and report directly to the WSME. He/she will have a tertiary qualification in engineering and at least 15 years experience in water supply management. The Specialist will assist the WSME to coordinate and supervise the component consulting team to ensure that inputs and activities of the national consultants are of a high quality and effective. Specific tasks include, but are not limited to:

(i) Assist the WSME in all the preparatory reviews, project management and reporting activities required by the Project including facilitating orientation and progress workshops, attendance at coordination meetings, liaison and cooperation with other projects in the sector;

(ii) Assist WASA, with WSME to prepare a detailed plan and materials for a series of central and regional workshops to raise awareness of governance, provincial authorities and PNPs to appreciate requirements and benefits of regulation to PNPs and customers;

(iii) With the WSME and international finance specialist, provide support and on-job training to assist WASA prepare outstanding regulatory guidelines and procedures or revise existing guidelines / procedures and implementing decisions and assist WASA to disseminate regulatory guidelines and procedures to the DPWTs and PNPs;

(iv) In conjunction with the international WSE: (a) provide technical advice, support and on-job training to assist WSD to prepare or revise sector development documents; (b) assist WSD to disseminate management and technical guidelines and standards to DPWTs and PNPs including follow-up support and placement of documents on the MPWT / WSD website; (c) assist WSD with development of the water supply strategic development plan and sector investment plan; (d) assist WSD to prepare the WSD Annual Report on water supply sector development; (e) assist WSD to update the wastewater investment plan and develop proposals for future donor funded projects;

(v) Assist each PNP to undertake all aspects involved in the preparation, implementation, monitoring and evaluation of prioritized and time-bound immediate action plans aimed to make each PNP sustainable.

(vi) Participate in regional workshops involving a number of PNPs in the IPS program to discuss progress, achievements and effectiveness; promote networking of the PNPs; document lessons learned and refine concepts, plans and activities for working with subsequent PNPs;

(vii) Prepare, deliver, evaluate and follow-up on formal training courses for all Project PNPs on any key identified aspects of water supply engineering, management, control, and system performance;

(viii) (ix)Assist the WSME to coordinate team activities that are assisting each PNP to prepare elements of the corporate plan including: (a) organizational structure and

42 Appendix 6

reporting mechanisms, (b) strategic development plans, (c) financial management systems and financial plan, (d) human resources development plan, (e) operation and maintenance / asset management plans, (f) customer services plan, (g) management information systems;

(ix) Assist the WSME to collate and incorporate all development planning elements into an overall corporate plan and facilitate a workshop with all relevant provincial stakeholders to obtain Administration Committee approval of the plan and, assist each PNP in the initial stages of corporate plan implementation;

(x) Assist the WSME to facilitate a study visit including training workshops to the Water Supply Utility in Phnom Penh concentrating on corporate planning and sustainability;

(xi) Contribute to Project workshops, training events and reports as required by the WSME.

e. Human Resources Development (HRD)/Communications Specialist

(National)

32. The National Human Resources Development / Communications Specialist will be a senior professional consultant with at least 10 years experience in management, public relations and HRD preferably in the WSS sector. He / she will undertake a key role in the development and implementation of HRD strategies and plans for the WSS sector as a whole and also for each PNP. The expert will assist WSD, WASA and PNPs develop duty statements, undertake training needs assessments, develop training programs and evaluate effectiveness of individual training activities and the program as a whole. The expert must be familiar with training needs assessment techniques and also with knowledge, attitude and practice surveys to gauge the effectiveness of training delivered and must have good working knowledge of English. The expert will report to the PCU and work closely with the WSME and the International HRD Specialist. Specific tasks include, but are not limited to:

(i) Assist WSD and WASA, with the WSME to: (a) assess staff capabilities against job descriptions and position in organization and update staff duty statements as required, (b) undertake training needs assessments, and (c) update / develop training plans to address training needs and develop program of capacity development to be provided under the Project including, for WSD, a longer-term approach to staff English language development, water supply and sanitation policy development, sector planning, master planning, project management and information technology, and for WASA, a longer-term approach to staff English language development, water supply regulatory planning, compliance monitoring, management, financing and budgeting, and, (d) evaluate the effectiveness of training undertaken,

(ii) Assist the International HRD Specialist and WSD to develop a WSS sector human resources development plan.

(iii) Work with the International HRD Specialist and WSD to develop a scholarship program for improving capacity in the sector, including for water supply and environmental engineers. This will include: assisting WSD to review existing water supply and environmental engineering and management courses available in Vientiane including enrollment procedures and curriculum; assisting WSD to: (a) develop scholarship criteria (including at least 30% of scholarships in all categories

Appendix 6 43

to be reserved for women), (b) promote the program to DHUP, DPWTs, PNPs and water supply private sector operators, (c) develop scholarship agreements and assess candidates sponsored, (d) prepare a program for implementation and, (e) prepare a financing mechanism and administration procedures; and assisting WSD to review scholarship candidate results annually with sponsors;

(iv) Assist WSD to review scholarship candidate results annually with sponsor. (v) Facilitate arrangements for South East Asia regional conferences / training events

for WSD and WASA mid level staff in agency core functions, (vi) Prepare, deliver and evaluate a series of formal training events in key skill areas

such as human resource development planning and customer services planning, etc. to WSD, WASA, DPWTs and PNPs;

(vii) Assist each Project PNP to review and assess any existing corporate planning, management, technical and human resource development plans or documentation,

(viii) Assist each PNP to revise organizational structure, job descriptions, reporting mechanisms, lines of communications, and authority levels to make the structure more efficient and appropriate to commercial operations,

(ix) Assist each PNP to: (a) review human resources capacity, training plans and budgets, (b) to improve strategy and plans and targeting of PNP priority training at the WTTC or local / regional colleges and, (c) monitor and evaluate implementation of urgent external training determined from action plans (management, financial, specialist). Follow up activities to reinforce the training provided,

(x) Contribute to Project workshops, training events and reports as required by the WSME.

f. Information Technology Expert (National – intermittent)

33. The Information Technology Expert must have a background in information technology (IT) and extensive work experience in the design/installation of accounting and billing software applications in the Lao PDR. The specialist must have good working knowledge of English and have demonstrated abilities in capacity development and change management. Work experience with any government utility is an advantage. He/she will report to the WSME and work closely with the national finance and accounting specialist and international MIS specialist. Specific tasks include, but are not limited to:

(i) Assist the national finance and accounting specialist to review the existing systems, policies and procedures of the 3 sample PNPs on general accounting and billing systems; identify weaknesses in the existing systems; formulate recommendations for their improvement; and discuss recommendations and obtain comments from the PNPs;

(ii) Assist the national finance and accounting specialist finalize recommendations taking into account the comments from the PNPs and obtain approval for the improved financial management system prior to documenting the improved system in manual form;

(iii) Prepare technical specifications, selection criteria and procurement documents for the procurement of locally developed, simple and user-friendly software packages for the general accounting and billing systems of the PNPs;

(iv) Assist the PNPs, with the national finance and accounting specialist, in the evaluation and selection of the preferred software packages;

44 Appendix 6

(v) Coordinate with the selected software supplier in the installation of the software packages and assist the selected software supplier conduct training of PNP accounting staff in the use of the software packages;

(vi) Assist the national finance and accounting specialist prepare and refine a model PNP Financial Management Manual in all aspects relating to the computerized general accounting and billing systems;

(vii) Assist PNPs develop a management information system using key performance indicators and assist in training and implementation of the system,

(viii) Assist each PNP to identify key performance indicators for use in management of the PNP, methods of data collection, recording, monitoring & evaluation and analysis and reporting, and incorporate into the MIS and corporate plan;

(ix) Assist PNPs to use the MIS and reports as a management tool for informing and adjusting their operations,

(x) Assist PNPs to implement the MIS, develop formats and prepare concise technical and financial performance reports to the Administration Board, prepare a system for provision of accurate performance information to WASA on annual basis or for random audits,

(xi) Assist WSD, WASA and PNPs with the design and installation of office equipment including computers and software, printers etc. and the use of MS Excel, Access, Project or other appropriate programs,

(xii) Provide IT specialist support and on-the-job training to WSD, WASA and PNP staff on project monitoring and data collection recording, processing, evaluation and analysis (for WASA annual performance report and WSD annual report) and the use of MS Access or other appropriate database programs for the up keep of data,

(xiii) Assist the WSME to prepare guidelines for project monitoring and evaluation and data management,

(xiv) Contribute to Project workshops, training events and reports as required by the WSME. (xv) Assist the PCU maintain project websites for the NCRWSSP and the STWSP.

g. Financial/Accounting Specialist (National) 34. The National Financial/Accounting Specialist must have an education in accounting with extensive experience in designing and implementing accounting and billings systems in a computerized environment or similar projects in Lao PDR. The expert must have good working knowledge of English and have demonstrated abilities in capacity development and change management. Work experience with any government utility is an advantage. The expert will report to the WSME and work closely with the national IT expert and the international finance, tariff and economics specialist. Specific tasks include, but are not limited to:

(i) Review the existing systems, policies and procedures on general accounting, customer billing and collection, financial planning and budgeting, inventory accounting, fixed assets accounting, financial information reporting and monitoring, and overall internal control of the PNPs of the sample subprojects (Savannakhet, Bokeo and Luangnamtha) – includes one PNP operating a water supply scheme in only one town;

(ii) Identify weaknesses in the existing systems, policies and procedures and formulate recommendations, including a flexible uniform chart of accounts system that is consistent with the enterprise accounting law;

Appendix 6 45

(iii) Discuss recommendations and obtain comments from the PNPs; (iv) Finalize recommendations taking into account the comments from the PNPs and

obtain approval for the improved financial management system prior to documenting in manual form;

(v) Assist the national IT expert prepare technical specifications, selection criteria and procurement documents for the procurement of locally developed, simple and user-friendly software packages, including hardware, for the general accounting and billing systems of the PNPs, and assist in the evaluation and selection of the preferred software packages;

(vi) Prepare a model PNP Financial Management Manual detailing accounting policies, procedures, forms and report formats complete with individual accounts description and illustrative pro-forma journal entries covering all routine accounting, financial management, and related administrative activities after getting approval for the improved financial management system;

(vii) Conduct workshops and on-the-job training of accounting staff of the Project PNPs in the use of the improved systems using the model manual as the main training material; on-the-job training should be at least 3 weeks at each participating PNP office covering the full accounting cycle (accounts coding, journal entry, ledger posting, reconciliation of subsidiary and general ledger accounts, bank reconciliation, adjusting journal entry, trial balance preparation and generation of financial reports and statements), budget preparation and monitoring, financial planning, projections and tariff review;

(viii) Refine the model PNP Financial Management Manual based on feedback and observations received during the workshop and on-the-job training;

(ix) Supervise and coordinate local (provincial town based) accounting firms that will provide ongoing part-time advice and assistance to each PNP on financial planning, management and accounting over a six month period,

(x) Assist the international finance, tariff and economics specialist develop a financial planning system and a 10 year financial plan for each PNP for inclusion into each PNP’s Corporate Plan,

(xi) Assist WASA in the preparation and production of the Annual Performance Report – collection and checking of regulatory accounts, tariff information and technical and financial performance data from PNPs and entry into database system (with assistance from National IT expert),

(xii) Assist the international finance and tariff specialist with the preparation of the Tariff Review (2011-2013),

(xiii) Contribute to Project workshops, training events and reports as required by the WSME.

h. Local Accounting Specialists (National –9 provinces)

35. The Specialist will also assist each PNP with legal and company status aspects to help them develop into commercially focused SOEs under the Enterprise Law and in accordance with a corporate plan. The expert will also assist WASA in legal aspects of regulatory guidelines and procedures. He/she will report to the WSME and work closely with the international and national finance and accounting specialists. Specific tasks include, but are not limited to:

46 Appendix 6

(i) Review existing legal framework for water supply and sanitation in Lao PDR including the Water Supply Law, if enacted, as they apply to PNP operations;

(ii) Review legal framework, status and mandate of each Project PNP including the Memorandums of Understanding prepared under NCRWSSP,

(iii) Review legislative, responsibilities, relationships and jurisdictional authority between the various institutions and stakeholders related to water supply service operations in each province,

(iv) Review the Enterprise Law and implementing PMOs as they apply to PNPs as SOEs, assess impact of the Law – problems and constraints to development as SOEs, review organizational structures of each PNP, and make recommendations to PNPs on how to comply with the Law and better structure the organization,

(v) Assist PNPs incorporate recommendations into their Immediate Action Plan and Corporate Plans,

(vi) Assist PNPs with implementation of legislative aspects in the immediate action plan,

(vii) Review legal framework for the Regulatory Committee and WASA and assist WASA, with the WSME, in legal aspects of the preparation, or revision as necessary, of regulatory guidelines and procedures, and comment / provide advice on legal documentation, Contribute to Project workshops, training events and reports as required by the

WSME.

i. Water Supply Institutional Expert (National) 36. The National Water Supply Institutional Expert will have an engineering tertiary qualification from a Lao recognized institution with a minimum of 10 years experience in the water supply industry specializing in operations and maintenance of all aspects of water supply systems. The NWSIE will undertake a key role in assisting each PNP: (a) to prepare and implement immediate action plans to improve sustainability of operation, (b) prepare, deliver, evaluate and follow-up a series of formal on-site training courses for each PNP in all aspects of O&M of WS systems; (c) assist in development and implementation of corporate plans for each PNP. The Specialist will report to the WSME. Specific tasks include, but are not limited to:

(i) Assist each PNP to: (a) review and assess organization, management, resources, operational conditions and technical and financial performance, (b) review the status and condition of each water supply system under each PNP management including all physical infrastructure, (civil works, pipe networks, mechanical and electrical plant and equipment), management, administration and operational systems and procedures; management, planning, implementation, budgeting of maintenance; (c) identify problems and constraints to development; (d) identify and analyze options, activities and costs to overcome the problems and constraints including immediate organizational, managerial, financial, billing and accounting systems; revenue, minor physical, technical and operational improvements, plant / operator specific manuals and guidelines, and equipment needs; and specific urgent training needs; and (e) identify sources of funds for implementation.

(ii) Assist present the findings of above analyses at workshops with PNP personnel, Administration Committee and provincial agency representatives;

Appendix 6 47

(iii) Assist each PNP to formulate a prioritized and time-bound action plan aimed to make the PNP sustainable. Participate in further workshop of the immediate action plan with all relevant provincial stakeholders and obtain Administration Committee approval to implement the plan;

(iv) Assist each PNP to implement and monitor all action plan activities, progress and achievement of targets, and effectiveness of the program related to key performance indicators;

(v) Participate in regional workshops involving a number of PNPs in the IPS program to discuss progress, achievements and effectiveness; promote networking of the PNPs; document lessons learned and refine concepts, plans and activities for working with subsequent PNPs;

(vi) Prepare, deliver, evaluate and follow-up on formal training courses for all Project PNPs on key identified aspects of O&M management, regular and periodic maintenance, asset management planning and budgeting, record and drawing systems and provide on-the-job training;

(vii) Assist each PNP to develop technical, asset management and O&M plans, budgets and record systems for each system under PNP control and integrate into corporate plan;

(viii) Contribute to Project workshops, training events and reports as required by the WSME. l. AUTOCAD Drafter/Trainer (National)

37. The AUTOCAD Drafter will undertake the following tasks:

a. Review the water supply record drawings and drawing registration systems of Project PNPs and recommend improvements.

b. Review the PNP’s computer and software systems used for engineering and drafting, and recommend upgrading where necessary.

c. Assist PNPs to update water supply drawing records and drawing registration system, and introduce systems to routinely record new water supply works.

d. Assist PNPs to prepare database of all water supply facilities. e. Provide training to PNP staff in AUTOCAD.

7. Consultants for Project Implementation

a. Project Accounting/MIS Specialist (National) –intermittent 38. The objective of the Project Accounting input is to advise and assist the PCU and PIU project accountants on overall accounting functions and activities of the project. The Project Accounting Specialist (National) must have an education in accounting with extensive experience in designing and implementing accounting systems or similar projects in Lao PDR. The specialist must have good working knowledge of English and have demonstrated abilities in capacity development. Work experience with any international donor funded government project is an advantage. The specialist will report to the Team Leader and work closely with the Project Accounting Specialist (International) for guidance and direction. Specific tasks include, but are not limited to:

(i) Review the project accounting system, chart of accounts, and software used in NCRWSSP; make adjustments, if necessary, to ensure an effective and efficient project accounting, monitoring and reporting system to project executing and implementing agency managers, government agencies, ADB and co-financiers;

48 Appendix 6

and adopt them for use by the STWSP to enable the concerned parties to review the project’s financial and physical progress periodically.

(ii) Advise and assist the Project Coordination Unit and Project Implementation Units to: a. Ensure that financial transactions are, in all cases, recorded in project accounts

accurately and on a timely basis and in accordance with ADB, co-financiers and government requirements and agreed financial policies and procedures for the project.

b. Ensure that the project expenditures on contract payments are made in accordance with the terms and conditions of the respective contracts and are adequately certified by duly authorized officials in relation to works completed and/or goods or services provided.

c. Ensure that adequate internal control is established and maintained in terms of separation of responsibilities for processing and authorizing payments and in the management and accounting for project expenditures and assets.

d. Ensure that all financial records are retained for audit purposes and for review by the ADB, co-financiers and government until at least one year following project completion.

e. Ensure that project financial transactions are recorded in the accounts in accordance with Government of Lao PDR regulations and ADB requirements and that records are reconciled periodically, at least on a monthly basis.

f. Ensure that the Imprest Account and Second Generation Imprest Accounts to be established for the project in local commercial banks are administered in accordance with ADB requirements.

g. Ensure that withdrawal requests for reimbursements from ADB are prepared and submitted to the Government and to ADB on a timely basis and in accordance with ADB procedures to replenish the Imprest Account. Ensure that Statements of Expenditures (SOEs) supporting withdrawal requests accurately reflect qualifying project expenditures and that underlying documents that verify these expenditures are retained and available for review as required;

h. Periodically, but at least quarterly, reconcile project records with ADB records relating to disbursements from the ADB grant/loan for all project components. Project records and bank statements should be reconciled more frequently, at least monthly.

i. Ensure timely preparation and distribution of integrated quarterly financial management and project management reports and annual project financial reports and statements required by ADB, under the provisions of the grant/loan agreement, as well as by the Government of Lao PDR. Provide any special financial reports that may be required from time to time on specific aspects of project’s financial progress or position as may be requested by ADB and/or the Government.

j. Ensure that annual project budgets are consistent with agreed program activity levels and expenditures. Ensure that budgetary allocations for the project are available to meet projected cash flow requirements for contract payments, pending reimbursement by ADB, and for administrative expenditures of the PCU and PIUs.

k. Ensure that project assets and inventories are safeguarded and revalued and verified periodically in accordance with the requirements of ADB, co-financiers and Government of Lao PDR and to support annual project financial audits;

Appendix 6 49

l. Liaise effectively with auditors to ensure effective annual audits in accordance with the ADB requirement.

m. Contribute to preparation of the training in basic project management skills for PCU and PIU staff. Conduct training on project accounting on-the-job and through classroom presentations.

n. Prepare progress reports for inclusion in the team progress reports to be prepared by the Team Leader.

b. Project Management/PMMS Specialist (National)

39. PPMSs are required to ensure that benefits under the Project are realized and received by all members of the target communities. To achieve this, baseline studies will be undertaken during the subproject design phase to identify the current socio-economic conditions of target beneficiaries to enable assessment of the impact after subproject completion. The PPMS specialists will assist in overall survey design and provide the procedures for analyzing the results. In addition, the specialists will be responsible for establishing performance monitoring of subproject implementation for reporting to the Government and ADB. The specialists will have tertiary qualifications, at least five years experience in international development projects or a related field and have at least 5 years experience as a PPMS specialist or related area. They will be responsible to the consultant team leader and be based in the PCU with frequent travel to the target provinces as required. Specific tasks include, but are not limited to:

(i) Assist PCU to undertake benefit monitoring and evaluation of the Project. (ii) Workshop the Design and Monitoring Framework (DMF) for the STWSP with a

wide range of stakeholders, and revise as necessary. (iii) Review the PPMS used for the NCRWSSP with the PCU staff and Team Leader

and determine the optimum monitoring program for project implementation, safeguards and benefits. Design a monitoring system based on measurable inputs, outputs and outcomes and ensure that data is disaggregated by sex, ethnicity, and income group as appropriate. Update the NCRWSSP PPMS as necessary for use on the STWSP.

(iv) Assist the PCU and local agencies to collect, record and analyze baseline data in pilot areas;

(v) Assist PCU staff to brief PIUs on their duties and responsibilities under the project monitoring system.

(vi) Guide the benefit monitoring agency in undertaking baseline surveys, developing monitoring parameters and scheduling monitoring activities.

(vii) Periodically review monitoring activities during project implementation and report any deficiencies, problems, issues or shortcomings to the PCU.

c. Gender/Social Specialist (International) –Gender/Social Expert

(National)

40. The Gender/Social Specialists will (i) prepare and implement poverty and social surveys and analyses, gender strategy and action plans and ethnic groups development plans or specific actions for about 11 subprojects; (ii) advise the PCU and PIUs on implementing the Ethnic Groups Development Framework and the Gender Action Plan and delivering awareness training to improve the understanding of gender and ethnic groups issues; and (iii) provide any guidance and implementation support as needed to PCU and PIUs. The tasks include, but are not limited to:

(i) Review the Project Gender Action Plan prepared, including review of GOL and ADB gender policies and objectives.

50 Appendix 6

(ii) Review ADB’s Handbook on Poverty and Social Analysis; Handbook on Resettlement: A Guide to Good Practice; Handbook on Strengthening Participation for Development Results: A Staff Guide to Consultation and Participation; Policy on Gender and Development and relevant ADB gender checklists; and operational manuals on involuntary resettlement, indigenous peoples, and other topics.

(iii) Together with the Community Development Team and the PIUs, manage socio-economic surveys in about 11 subproject towns. Prepare survey methodology, engage surveyors and data processors, analyze, and report on survey results, using the household survey questionnaire that was developed for the PPTA.

(iv) Prepare and implement a short Willingness-to-Pay (WTP) survey, which will be piloted for the first 3 subproject towns to verify findings during appraisal of the 3 subprojects and later incorporated into the social surveys for the remaining subprojects.

(v) Together with the Community Development Team and the PIUs, prepare a socioeconomic profile for each small town included in the sector project, with data disaggregated by sex, ethnicity, and income where possible.

(vi) Assist the PCU and PIUs to prepare poverty and social assessments, gender action plans, EGDPs and specific actions (as required) for the feasibility studies of about 11 subprojects.

(vii) Support the integration of gender and ethnic aspects and specific actions into the subproject designs.

(viii) Consult with LWU and women’s groups to ensure women’s needs are addressed in project activities, and in the design and monitoring of the project

(ix) Provide advice on implementing the gender plan and ethnic groups development plans, including data collection and monitoring, technical design issues, gender sensitive communication, and equal access to training and capacity development. Devise and measure indicators to differentiate outcomes of male and female beneficiaries, ethnicity and income groups.

(x) Prepare training courses relevant to the water and sanitation sector and appropriate for all project implementing agencies. Deliver awareness training to PIA Consultant team, PCU, PNPs/PIUs, village development committees and other agencies and individuals as required.

(xi) Integrate gender and ethnic issues as part of the curriculum in all training courses. (xii) Undertake the training needs assessments of women PNP staff and support the

implementation of GAD funded activities.

d. Water Supply Engineer (International); Water Supply Engineer -1 (National); Water Supply Engineer – 2 (National); Drainage/Sanitation Engineer (National)

41. The engineers will assist in preparing detailed feasibility assessments, cost estimates, detailed engineering design and tender documents for water supply and drainage infrastructure in about 11 new subproject towns. Specific tasks include, but are not limited to:

(i) Conduct field surveys to assess service levels, physical and environmental conditions, and O&M of existing urban water and drainage infrastructure.

(ii) Conduct raw water assessments and analyze topography, natural drainage flows, the layout of water supply systems. Review and assess recommended design standards, and water supply technologies; review the designs of previously built water supply systems and recommend the most cost-effective and appropriate technology.

Appendix 6 51

(iii) Confirm service areas, design population, design criteria and standards for design of infrastructure systems in each subproject town.

(iv) Discuss WSS investment needs with DHUP, PNPs, provincial and district governments.

(v) Prepare preliminary designs, costing and least cost analyses for basic WSS in about 11 towns for the feasibility studies.

(vi) Assist with assessment of land acquisition and compensation and environmental impacts.

(vii) Carry out detailed engineering designs for all subproject works, prepare drawings and technical specifications, performance specifications for subproject works and equipment, and prepare detailed cost estimates;

(viii) Prepare bills of quantities and bid documents in English and Lao languages for each contract package, including technical specifications, conditions of contract, contract schedules, and appendixes.

(ix) Undertake periodic inspections of during construction to ensure that the constructed works comply with the design intent.

42. The Water Supply Engineer (International) will also take the lead roll in assisting WSD prepare/revise policy, management and technical documents/guidelines/standards and disseminate to the provinces. He /she will report to the Water Supply Management Expert and work closely with him/her. In addition to the above, tasks include:

(i) Assist WSD to update a list of required water supply and wastewater management and technical guidelines, procedures, standards, policy documents, codes of practice, standard model designs and drawings, regulations and any decrees and decisions necessary for sector development. Prepare a time-based schedule for development of the documents.

(ii) Assist WSD to collect relevant international water supply and wastewater reports, guidelines, standards, specifications, contract documents and the like and copies of previous relevant project reports from consultants, PCUs and specialists;

(iii) Provide technical advice, support and on-job training to assist WSD and the existing Technical Working Group (TWG) to prepare or revise sector development documents in accordance with the schedule prepared in (i) above.

(iv) Assist WSD to (a) prepare a detailed plan and materials for a series of regional workshops to disseminate management and technical guidelines and standards to DPWTs and PNPs including follow-up support and placement of documents on the MPWT / WSD website; (b) implement participatory workshops – set tasks for subsequent round of workshops, record results, evaluate responses and refine materials and approach as workshops proceed; and (c) evaluate effectiveness of workshops and present findings and recommendations at annual progress workshops.

(v) Assist WSD with detailed development of the water supply strategic development plan and sector investment plan to take account of all types of water suppliers including private sector small-scale independent providers (SSIPs) and community managed supply schemes;

(vi) Assist WSD to prepare the WSD Annual Report on water supply sector development – water supply scheme details, sector investment plan and priorities, WSD/DPWT details, and projects, etc.

52 Appendix 6

(vii) Assist WSD to update wastewater investment plan and develop proposals for future donor funded projects to prepare drainage and wastewater master plans for priority towns and for priority investment projects.

(viii) Prepare, deliver and evaluate a series of formal training events in key skill areas such as water supply systems engineering and appropriate technology, etc. to WSD, WASA, DPWTs and PNPs.

(ix) With the WS operations specialists, review the status and condition of each water supply system under each Project PNP management – physical works and management and operational systems and procedures and identify problems and constraints to development.

(x) Identify and analyze options, activities and costs to overcome the problems and constraints including minor physical, technical and operational improvements and equipment needs/

(xi) With the WSME, review and assist each PNP to develop strategic plans, set policy, targets, and short / medium-term investment plans for inclusion in their Corporate Plans.

43. The Water Supply Engineer – 1 (National) will also take the lead role in the immediate and strategic planning aspects of each PNP’s immediate action plan and Corporate Plan development. The expert must be a senior professional engineer with at least 20 years experience in the water supply sector in Lao PDR. The expert must have good working knowledge of English and have demonstrated abilities in capacity development and change management. The expert will report to the Component Leader and work closely with the National Water Supply Management Expert. Specific tasks include, but are not limited to:

(i) Assist each DPWT, with CL and NWSME, to assess the training needs of the staff allocated responsibility for provincial WSS planning and develop a training program of workshops and formal training courses to address the needs,

(ii) Facilitate three regional workshops (north, central, south) on the role and responsibilities of DPWT in WSS planning, management and regulation within the provinces. Persons allocated responsibility for WSS within DPWT to attend.

(iii) Facilitate formal regional training events in WSS planning, management, regulation and licensing.

(iv) Facilitate formal regional training events in the role of the private sector in WSS sector and promotion and control of small-scale independent providers.

(v) Coordinate and evaluate the results of formal external training courses at the WTTC (or other appropriate training institution) in financial planning and management relevant to the WSS sector,

(vi) Coordinate the active participation and involvement of DPWT personnel responsible for WSS in the programs for dissemination of management, technical and regulatory guidelines and procedures to provincial agencies and with all activities in the IPS program,

(vii) Assist each PNP to develop strategic plans, set policy, targets, and short / medium-term investment plans,

(viii) Assist PNPs, with other team members, to identify problems and constraints to each PNP performance and development and analyze options, activities and costs to overcome these including immediate organizational, managerial, financial, billing

Appendix 6 53

and accounting systems, revenue, minor physical, technical and operational improvements and equipment needs,

(ix) Contribute to Project workshops, training events and reports as required by the WSME.

e. Economist and Financial Analyst (International) –intermittent

44. The objective of the Economic and Financial Analysis input is to determine the economic and financial viability of the proposed subprojects, including their sustainability, and the required tariff levels to meet the financial objectives of the sector.

45 The Economist and Financial Analyst (International) must have an economics background or its equivalent with extensive experience in economic and financial analysis of water supply and sanitation projects. Work experience in Lao PDR or similar developing countries is an advantage. The specialist must be familiar with the ADB’s Guidelines for the Economic Analysis of Projects, Handbook for Integrating Poverty Impact Assessment in the Economic Analysis of Projects, Handbook Guidelines for the Economic Analysis of Water Supply Projects, Handbook for Integrating Risk Analysis in the Economic Analysis of Projects, Framework for the Economic and Financial Appraisal of Urban Development Sector Projects, ADB’s Guidelines for Financial Governance and Management of Investment Projects and Criteria for Subsidies, and ADB ERD Technical Note Series 23: Good Practices for Estimating Reliable Willingness-to-Pay Values in the Water Supply and Sanitation Sector. 46. The specialist will report to the Team Leader. Specific tasks include, but are not limited to:

(i) Carry out demand analysis for all subprojects, resulting in validated data on: willingness-to-pay (WTP) versus improved service levels; demand versus price variations; demand versus income variations; uptake rates for poor/non-poor and connected/unconnected population. Propose pro-poor policy, such as subsidized or deferred connection fee payments.

(ii) Carry out WTP analysis following contingent value method and determine mean WTP levels, differentiated for poor/non-poor and connected/unconnected population.

(iii) Assist gender/social specialist in preparing survey documents and scoping the survey, to include reliable data on income, monthly water bills, price and perceived quality of alternative water sources, etc.

(iv) Prepare the economic analyses for the subprojects in form and substance agreeable to ADB, covering mean WTP levels, least economic cost analysis, economic cost and benefit analysis, economic internal rates of return, average incremental economic costs, sensitivity analysis, benefit distributional analysis, poverty impact ratio and subsidies.

(v) Prepare the financial analyses for the subprojects in form and substance agreeable to ADB, covering financial cost and benefit analysis, financial internal rates of return, weighted average cost of capital, average incremental financial costs, sensitivity analysis with respect to major project design and implementation risks, water tariff recommendations, affordability analysis, performance and indicators of the PNPs, and financial projections of the PNPs;

(vi) Assess the financial performance of the PNPs and formulate recommendations including actions plans for their financial sustainability.

(vii) Analyze the cost of all technically feasible alternatives and assess whether the proposed Project sub-components are the least cost options or establish other (non-cost) factors that favor choosing another alternative;

54 Appendix 6

(viii) Review current accounting and administrative capacities within the local authority, the internal control system employed and internal and external auditing procedures; recommend any changes as appropriate;

(ix) Establish financial objectives and targets and prepare financing plans and projections, including income statements, balance sheets, cash-flow statements, and other relevant financial statements for operations for the 10 year period after project completion to demonstrate financial viability;

(x) Assess and recommend appropriate tariffs for the pilot private water supply system in the extension area of one selected subproject town.

(xi) Prepare progress reports for inclusion in the team progress reports to be prepared by the Team Leader.

(xii) Produce the following outputs: Detailed Economic Analysis by Subproject; Detailed Financial Analysis by Subproject; Assessment of Financial Performance and Recommendations for Financial Sustainability of the PNPs; and Completion of a Financial Management Questionnaire and Assessment.

f. Technical Specialists, including: Electrical and Mechanical Engineer

(International); Structural Engineer (National); Electrical Engineer (National); Hydrogeologist (International); Geotechnical Engineer (National). All intermittent.

47. The technical specialists will support the Team Leader, Deputy Team Leader and Water Supply Engineers in undertaking the feasibility studies, detailed engineering designs and, where necessary, periodic inspections during construction. Specific tasks include, but are not limited to:

(i) Provide specialist inputs to the feasibility studies and detailed designs as required by the Team Leader.

(ii) Provide advice on technical issues and operation and maintenance, and prepare contributions to O&M manuals.

(iii) Prepare technical specifications and supervise the detailed engineering designs of concerned infrastructure.

(iv) Undertake periodic inspections of the works during construction and assist with commissioning of the works as required by the Team Leader.

g. Construction Engineers. National – 2 Engineers

48. Two National Construction Engineers will assist the Team Leader and Deputy Team to manage construction and commissioning of the works. They will be based in Vientiane, and will spend a substantial amount of time in the field to inspect, monitor and report on construction activities. They should have experience in supervising construction work with are implemented using FIDIC Condition of Contracts. Specific tasks include, but are not limited to:

(i) Monitor, and update as necessary design and construction schedules with recommendations on construction supervision and management.

(ii) Monitor and update construction cost schedules and contract expenditures; (iii) Supervise, inspect, measure, and control the quality of the construction works and

the installation of equipment to insure compliance with contract drawings and specifications, and make recommendations to the Team Leader on the issuance of Contract Notices, and payment certificates.

(iv) Assist the PCU and PIUs to: (a) administer the construction and procurement contracts; (b) commission and evaluate the performance of completed facilities and new equipment, and; (c) review and validate any proposed design modification.

(v) Assist the Team Leader with progress reports and PMMS reports.

Appendix 6 55

h. Construction Supervisors. National 3 to 6 Supervisors

49. About 3-6 experienced construction supervisors will be engaged to supervise the construction activities in the subproject towns. They will be recruited in Vientiane and will work in the subproject towns during the construction period. The supervisors will be qualified engineers or` technicians with at least 5 years construction supervision experience on major construction projects, preferably in water supply and drainage fields, and preferably in working with FIDIC or similar conditions of contract. Specific tasks include, but are not limited to:

(i) Monitor, observe, record and report on day-to-day construction activities; (ii) Supervise, inspect, measure, and control the quality of the construction works and

the installation of equipment to insure compliance with contract drawings and specifications, and make recommendations to the Construction Engineers on the issuance of Contract Notices, and payment certificates.

(iii) Assist the PCU and PIUs to: (a) administer the construction and procurement contracts; (b) commission and evaluate the performance of completed facilities and new equipment.

(iv) Assist the Construction Engineers with progress reports and PPMS reports.

i. Resettlement Specialists. (International) - (National). 50. The specialists will assist the Executing Agency (EA) to prepare and monitor land acquisition and compensation plans. Specific tasks include, but are not limited to:

(i) Review ADB’s Handbook on Poverty and Social Analysis; Handbook on Resettlement: A Guide to Good Practice; Handbook on Strengthening Participation for Development Results: A Staff Guide to Consultation and Participation; Policy on Gender and Development and relevant ADB gender checklists; and operational manuals on involuntary resettlement, indigenous peoples, and other topics.

(ii) Assist the EA prepare a LACP plan for about 11 subproject towns following the basic principles of the LAR framework prepared during the PPTA

(iii) Provide orientation and capacity development in resettlement to staff of PCU, PIU and district agencies.

(iv) Conduct training in ADB resettlement requirements and procedures for consultants, PCU, PIUs local resettlement staff, and other town agencies as necessary.

(v) Assist in: (a) verifying census, inventory of losses survey, replacement cost survey, and detailed measurement survey activities; (b) preparing the affected persons database, check for accuracy, and provide suggestions for improvements if necessary;

(vi) Assist PCU and PIUs to: (a) supervise and monitor land acquisition and resettlement, in accordance with the approved provincial resettlement plans and ADB's Policy on Involuntary Resettlement, and; (b) implement the resettlement plans with a focus on community consultation, entitlement review, compensation assessment, and grievance procedures.

(vii) Ensure that grievances redressal mechanisms are appropriate, and advise if necessary on speedy resolutions.

(viii) Assist the PCUs, and local resettlement committees to establish their affected persons database, including records of compensation awards and grievances redressals.

56 Appendix 6

j. Environmental Specialists: International – National

51. The environmental specialists will assist the PCU and PIUs to prepare environmental assessments for the feasibility studies of about 11 subprojects, review the environmental assessment of the feasibility studies from the 3 core subproject towns, and provide capacity development in environmental assessment and monitoring to PCU and PIU staff. 52. The International Environment Specialist will have a tertiary qualification in a relevant discipline such as environmental engineering, engineering, or the biological sciences and at least 8 years of experience in the environmental management of infrastructure projects, including environmental assessment, and works supervision. The specialist will make three visits to the Project to assist with IEE and EMP preparation and with supervision of construction and will:

(i) Provide initial orientation to PCU and PIU staff in environmental management. The training should cover purposes, methods of assessment, reporting requirements, EMP preparation, inclusion of EMP into works contracts, and compliance monitoring during supervision. The training should be based on the EARF for the Project.

(ii) Provide advice and support to the National Environment Specialist and staff of the PCU and PIU for the preparation of IEEs, providing guidance on site in the Project towns.

(iii) Assist PIUs in organizing public consultation to share the IEE findings and incorporate communities’ concerns and feedback in the design and/or mitigation measures if appropriate. Coordinate with parallel consultations for engineering, social and resettlement findings.

(iv) Incorporate EMP requirements in the civil construction contract documents. (v) Assist the PCUs and PIUs to design and implement environmental monitoring

programs. (vi) Assist PCU to prepare standard reporting formats for environmental monitoring

reports. (vii) Review the framework for the CIPP and VEI (based on the existing implementation

guidelines for the community health and awareness program [CHAP] and VEI for NCRWSSP) to ensure that adequate environmental awareness/education is included in the CIPP and environmental screening (e.g., simple checklists) will be included in the small-scale village environmental improvements.

(viii) Review IEEs submitted to the PCU, ensuring that they meet the requirements of the GOL and of the ADB, and carrying out or arranging for any further tasks such as site investigations, design of mitigation measures or additional reporting.

(ix) Assist the PCU submit individual subproject IEE to the Water Resources and Environmental Agency after detailed design. Assist the PCU address any questions arising from WREA’s and ADB review.

(x) Visit Project towns during construction and provide guidance relating to supervision and compliance monitoring, advising the PIU of any actions required to ensure compliance with the EMP.

(xi) Periodically review monitoring reports and identify any adaptations or improvements necessary in order to ensure that the EMP is being properly implemented.

53. The National Environmental Specialist will have a tertiary qualification in a relevant discipline such as environmental engineering, engineering, or the biological sciences, be familiar with the EPL and other relevant environmental legislation and have at least 5 years of experience of working on infrastructure projects involved in environmental assessment, monitoring, or

Appendix 6 57

carrying out mitigation measures. Also Fluency in English and proven report preparation skills. Specific tasks include, but are not limited to:

(i) Assist the International Environment Specialist, in designing and carrying out initial orientation to PCU and PIU staff in environmental management, including the preparation of material and instruction in the Lao language.

(ii) Visit each Project town and provide guidance on environmental assessment and IEE report preparation, in accordance with the EARF for the Project.

(iii) Assist PIUs in carrying out public consultation to share the IEE findings and incorporate communities’ concerns and feedback in the design and/or mitigation measures if appropriate. Coordinate with parallel consultations for engineering, social and resettlement findings.

(iv) Participate in the design development of the CIPP and VEI to ensure that adequate environmental awareness/education is included in the CIPP and environmental screening (e.g., simple checklists) will be included in the small-scale village environmental improvements.

(v) Assist the PCU with review of IEEs, and co-ordinate with PIUs for any further investigations ore reporting that may be necessary.

(vi) Visit Project towns during construction and provide guidance relating to supervision and compliance monitoring, advising the PIU of any actions required to ensure compliance with the EMP.

(vii) Visit Project towns where construction has been completed and assist with establishing environmental monitoring procedures for the operation phase of the subprojects.

54. The Project Consultants will subcontract a National UXO Specialist who will be experienced in UXO clearance procedures, will be familiar with current legislation relating to UXO clearance and will have at least 5 years of previous experience in UXO detection and clearance related work, including consultation with villagers on local knowledge relating to UXO occurrence. Specific tasks include, but are not limited to:

(i) Obtain relevant information on UXO or suspected UXO occurrence for each town, as available from the National Mines Regulatory Authority.

(ii) Visit each Project town and assist the PIU with public consultations to assess the UXO risk associated with construction works at each work site including intakes, water treatment plant and transmission lines.

(iii) Report to the PCU, advising of the need to obtain services for clearance (iv) Co-ordinate the procurement of clearance services as necessary.

55. Community Development Team: The Community Development Team will comprise of community development advisor, community development specialist, community training officer and IEC advisor. The team will assist PIUs, LWU, Village Development Committees and partner line ministries (education and health) to design and implement the Community Actions and Participation (CAP) program in about 11 towns. They will also provide capacity development to assist Village Development Committees and communities to manage the village improvements and their on-site water supply and sanitation systems. The specialists under this team may be recruited to initially work together, but may continue to work individually depending on the implementation schedule.

k. Community Development Adviser (International)

58 Appendix 6

(i) Review the experiences and arrangements under the NCRWSSP for implementing the awareness programs, and the village level improvements and households sanitation scheme

(ii) Review the methodology used and lessons learned under the NCRWSSP to assist communities identify, select, plan, design and implement the village environmental improvements in the areas of water supply and sanitation improvements through an iterative participatory process, involving (a) self assessment of needs and demands; (b) costing of priority works; (c) reprioritizing works to meet available budget; (d) final selection and design of works; (e) identifying means of project implementation and work program; (f) implementation with technical assistance of PIUs. Suggest improvements as required and ensure that communities and LWUs identify and address lessons learned in the second round of VEIs and include a concluding workshop to assist communities in carrying forward the activities and processes after the project.

(iii) Develop an Operations Manual and Field Guide (based on the one prepared for the NCRWSSP), describing approaches, implementation mechanisms, and management arrangements including strategies for CAP roll-out, an exit strategy and sustainability measures.

(iv) Review the institutional setting at the village level and assess capacity development needs of Village Development Committees, as part of the social assessment during subproject feasibility;

(v) Help the PIUs and village development committee define their roles and responsibilities and prepare duty statements for their key personnel;

(vi) In collaboration with stakeholders, prepare and implement an agreed stakeholder participation plan to ensure stakeholder participation at all levels and at all stages of the Project;

(vii) Coordinate development of training program and assistance to PIUs and LWU to strengthen their capacity to plan, manage, and monitor community awareness and development activities, and the village environmental improvements.

(viii) Define the methodology to be used, eligibility criteria, time and staff resources required, sequence of targeted areas in each town, disbursement mechanisms, monitoring indicators, and reporting requirements and formats for each element of the CAP program. Prepare a detailed budget for the program in each town. Conduct training, and hold workshops and events to launch the project and distribute project information. Document all procedures that will be necessary for the PIU and LWU to manage and monitor the program.

(ix) Review awareness and communication strategies and materials, training manuals prepared under other projects or programs, and adapt these materials and manuals to local conditions in consultation with the PIU teams, health and education offices, Women’s Union and mass organizations. Develop and produce new project awareness materials as needed.

(x) Assist the PIUs to prepare progress reports to the PCUs on community awareness and participation activities. Prepare guideline report formats for quarterly and annual reports to the PIU and PCU, covering CAP.

(xi) Provide training to PIUs in community consultation and consumer surveys; (xii) In consultation with local stakeholders, develop O&M guidelines for small urban

infrastructure in the towns and help to define the roles and responsibilities of local government and the communities.

(xiii) Assist the Training Coordinator/O&M Specialist and district agencies to enhance the capacities of village development committees and communities to operate and maintain village infrastructure and their on-site water and sanitation facilities.

Appendix 6 59

(xiv) Formulate methodologies for evaluating both the process and outcome of the community program.

(xv) Provide inputs to the Project manager/PPMS specialist and the Community Development Advisor to assist each PNP to develop / revise and implement a customer services and public relations plan, to include workshops to improve community understanding of PNP systems and operations, and integrate into the corporate plan.

l. Community Development Specialist (National):

(i) Review the experiences and arrangements under the NCRWSSP for implementing

the awareness programs, and the village level improvements and households sanitation scheme

(ii) Review the methodology used and lessons learned under the NCRWSSP to assist communities identify, select, plan, design and implement the village environmental improvements through an iterative participatory process, involving (a) self assessment of needs and demands; (b) costing of priority works; (c) reprioritizing works to meet available budget; (d) final selection and design of works; (e) identifying means of project implementation and work program; (f) implementation with technical assistance of PIUs. Suggest improvements as required and ensure that communities and LWUs identify and address lessons learned in the second round of VEIs and include a concluding workshop to assist communities in carrying forward the activities and processes after the project.

(iii) Assist the development of an Operations Manual describing approaches, implementation mechanisms, and management arrangements including strategies for CAP roll-out, an exit strategy and sustainability measures.

(iv) Review the institutional setting at the village level and assess capacity development needs of Village Development Committees;

(v) Help to establish PIUs and village development committee roles and responsibilities, recommend their compositions and selection criteria, and prepare duty statements for their key personnel;

(vi) In collaboration with stakeholders, prepare and implement an agreed stakeholder participation plan to ensure stakeholder participation at all levels and at all stages of the Project;

(vii) Provide training and assistance to PIUs and LWU to strengthen their capacity to plan, manage, and monitor community awareness and development activities, and the village environmental improvements.

(viii) Using participatory methods, define the methodology to be used, eligibility criteria, time and staff resources required, sequence of targeted areas in each town, disbursement mechanisms, monitoring indicators, and reporting requirements and formats for each element of the CAP program. Prepare a budget for the program in each town. Conduct training, and hold workshops and events to launch the project and distribute project information. Document all procedures that will be necessary for the PIU and LWU to manage and monitor the program.

m. Community Training Officer (National)

(i) In collaboration with stakeholders, prepare and implement an agreed stakeholder

participation plan to ensure stakeholder participation at all levels and at all stages of the Project;

60 Appendix 6

(ii) Provide training and assistance to PIUs, LWU and VDCs to strengthen their capacity to plan, manage, and monitor community awareness and development activities, and the village environmental improvements.

(iii) Provide ongoing support to PIUs and village development committees for implementing and monitoring the programs in each province. Monitor the overall progress and impact of health awareness activities on the project.

(iv) Provide training to PIUs in community consultation and consumer surveys; (v) Assist the Training Coordinator/O&M Specialist and district agencies to enhance the

capacities of village development committees and communities to operate and maintain village infrastructure and their on-site water and sanitation facilities.

n. IEC Adviser (National)

(i) Review the experiences and arrangements under the NCRWSSP for implementing the

awareness programs, and the village level improvements and households sanitation scheme

(ii) Assist the HRD Adviser and National Training Adviser with advise on the skill set that are required be be an effective communicator with communities. This information will be used when the advisers undertake the capacity assessment of PIU staff and the CIPP consultants staff.

(iii) Work with the Community Development Adviser and the Projects’ stakeholders and beneficiaries to undertake a study to identify unique practices and beliefs that will influence awareness strategies in each town.

(iv) Review awareness and communication strategies and materials, training manuals prepared under other projects or programs, and adapt these materials and manuals to local conditions in consultation with the PIU teams, health and education offices, Women’s Union and mass organizations. Develop and produce new project awareness materials as to be used as part of the overall Communications Plan.

(v) Provide support to PIUs, LWUs and village development committees to enable them to understand the different modes of delivery of community messages and how the messages may bring about behavioural changes and how these approaches can be implemented and monitored over time and the potential impact they can have on health awareness activities on the project.

8. Consultants for Capacity Development for O&M

a. O&M Specialist (International and National)

56. The specialists will help to build the capacities of provincial and branch Nam Papas (PNPs and BNPs) and district Offices of Communications Transport Post and Construction (OPWTs) to manage, operate and maintain the subproject facilities. Specific tasks include, but are not limited to:

(i) Assess the organizational performance and training needs of the BNP and OPWT in about 16 towns, design a capacity development program for each, with clearly defined scope, time, and SMART targets, including on-the-job training and formal training, to cover the identified training needs.

(ii) Assist the PNP and OPWT to: (i) formulate appropriate organizational structures and staffing for BNPs and OPWTs, and; (ii) prepare duty statements for all BNP/OPWT staff.

Appendix 6 61

(iii) Provide training to: (a) BNPs in management, O&M of water supply systems, and; (b) to OPWT in management, O&M of drainage and sanitation facilities and community mobilization. Help to make arrangements with institutions for formal training programs.

(iv) Design and install a computerized system for registration, control, and monitoring of all assets, including inventories, O&M and office equipment, spare parts, tools, vehicles, and furniture, with clearly defined accountability.

(v) Help PIUs to integrate "as-built" drawings prepared by construction contractors with BNP ands OPWT drawings records systems.

(vi) Prepare subproject-specific O&M plans and O&M manuals for BNP and OPWTs in English and Lao languages.

(vii) Assist BNP and OPWT staff to: (a) set up manual maintenance programs and maintenance contracts with equipment suppliers for all facilities constructed under the Project, (b) prepare detailed maintenance budgets, and (c) implement an annual maintenance program in each town.

(viii) Provide training in OH&S to OPWT managers and staff to improve Occupational Health and Safety (OH&S) Systems for staff, contractors and informal workers.

62 Appendix 8

PROCUREMENT PLAN

Project Name: Small Towns Water Supply and Sanitation Sector Project

Grant Number: Tbd

Grant Amount (total from all financiers): $26.1 million Executing Agency: Ministry of Public Works and Transport

Date of first Procurement Plan (grant approval date): Tbd

Date of this Procurement Plan: 18 November 2008

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

1. Project Procurement Thresholds

1. Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold International Competitive Bidding for Works Above $1,000,000 International Competitive Bidding for Goods Above $500,000 National Competitive Bidding for Works Below $1,000,000 and above $100,000 National Competitive Bidding for Goods Below $500,000 and above $100,000 Shopping for Works Below $100,000 Shopping for Goods Below $100,000

2. ADB Prior or Post Review

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

Procurement Method Prior or Post Comments Procurement of Goods and Works

ICB Works Prior ICB Goods Prior NCB Works Prior NCB Goods Prior Shopping for Works Prior Shopping for Goods Prior

Recruitment of Consulting Firms Quality and Cost Based Selection (QCBS) Prior Quality Based Selection (QBS) Prior Other selection methods: Consultants Qualifications (CQS), Least Cost Selection (LCS), Fixed Budget (FBS), and Single Source (SSS)

Prior

Recruitment of Individual Consultants Individual Consultants Prior

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

3. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months based on an estimated 15 subproject towns.

General Description Contract Value ($)

Procurement Method

Prequalification Of Bidders (y/n)

Advertisement Date

(quarter/year)

Comments

Water supply works in Songhkone town

2,059,000 ICB Yes Q4 2009

Appendix 8 63

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

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

General Description Contract Value ($)

Recruit-ment

Method

Advertisement Date

(quarter/year)

International or National

Assignment

Comments

Consulting services for: - surveys - detailed design of works - supervision of works - implementation assistance - capacity building for O&M - sector strengthening

4,807,400 QCBS (80:20)

FTP

Q1 2009 International Single contract for the various

subpackages. Each package will

commence depending on

project requirements

Consulting services for enhanced gender equity in urban water supply and sanitation management

140,000 Individuals Q1 2009 International and national

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

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

General Description

Value of Contracts ($)

Number of Contracts

Procurement / Recruitment Method

Comments

Construction contracts (works) - Supply & install water supply works in Viengphoukha town

554,700 1 NCB

- Supply & install water supply works in Houixai town

139,600 1 NCB

- Supply & install drainage improvement works in Viengphoukha town

126,300 1 Shopping

- Supply & install drainage improvement works in Songhkone town

112,000 1 Shopping

Supply and delivery (goods) - 8 pickup vehicles 148,000 1 NCB - 12 1-ton flatbed trucks 168,000 1 NCB - 32 motor bikes 28,800 1 Shopping - 26 packages lab equipment for water testing 233,000 1 NCB - Office equipment and furniture for PCU, WSD, WSRC,WASA, PIUs and consultant

1,500–15,000 (total value is

368,300)

51 Shopping

- Equipment for Community Actions and Participation

500–3,000 (total value is

67,700)

36 Shopping

- Small civil contracts (including materials) for Village Environmental Improvements

5,000–27,000 (total value is

109,000)

14 Shopping and/or Direct Contracting

Service contracts - Survey and investigations 1,500–30,000

(total value is 200,000)

53 Shopping

- Training courses and training fees 500–15,000 (total value is

27,400)

38 Shopping

- Contracts for Community Information and Participation Program

2,500–55,000 (total value is

363,800)

10 SSS

64 Appendix 8

B. Project Procurement Plan—Indicative List of Packages Required Under the Project

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

General Description Estimated Value (cumulative $)

Estimated Number of Contracts

Procurement Method Comments

Construction contracts (works) Supply and install new water supply systems

13,440,936 12 ICB/NCB Contract value: 554,700–2,059,000

Rehabilitation of water supply works (supply and install)

465,680 3 NCB Contract value: 110,000–163,600

Drainage improvements 866,300 12 Shopping contract value: 50,000–90,000

Public sanitation 552,000 12 Shopping Contract value: 20,000–60,000

Supply and delivery (goods) - 8 pickup vehicles 148,000 1 NCB - 12 1- ton flatbed trucks 168,000 1 NCB - 24 motor bikes 28,800 1 Shopping - 26 packages lab equipment for water testing

233,000 1 NCB

- Office equipment and furniture for PCU, WSD, WSRC, and WASA, PIUs and consultant

368,300 51 Shopping Contract value: 1,500–15,000

- Equipment for community actions and participation

101,000 36 Shopping Contract value: 500–3,000

- Small civil contracts (including materials) for village environmental improvements

1,090,460 144 Shopping and/or direct Contracting

Contract value: 5,000–27,000

Services - Consulting services for project detailed design, supervision, implementation assistance, capacity building for O&M and sector strengthening

4,807,400 1 QCBS (80:20)

FTP

- Service contracts for water supply O&M

As required ($135,000

provisional in estimated project

cost)

As required (3 contracts

provisional in estimated

Project cost)

LCS National

BTP

Approximate value per

contract: 45,000

- Survey and investigations 400,000 105 Shopping Contract value: 1,500–30,000

- Training courses and training fees 83,100 116 Shopping Contract value: 500–15,000

- Contracts for community information and participation program

543,000 15 SSS Contract value: 2,500–55,000

Note: September 2008 prices.

Appendix 8 65

DISBURSEMENT PROCEDURES

Reference: ADB’s Loan (Grant) Disbursement Handbook dated January 2007 1. Procedures for withdrawal of Grant proceeds are standardized to facilitate disbursements under most Grants. Disbursement procedures consist of four major types, described briefly below: A. DIRECT PAYMENT PROCEDURE (page 24 of the Handbook) 2. This procedure is where ADB, at the Recipient's request, pays a designated beneficiary

directly. Requirements

• A signed withdrawal application (form ADB-DRP/RMP in Appendix 5) must be submitted to ADB together with a summary sheet (form DRPSS in Appendix 8) and the required supporting documents.

• A separate withdrawal application is required for each different currency. Supporting Documents 3. The following supporting documents must be submitted to ADB with the withdrawal application:

• All cases require a contract or confirmed purchase order (PO), if not submitted earlier to ADB, indicating the amount and date due;

• payment of goods requires the supplier’s invoice, bill of lading, other similar documents;

• payment of services requires the consultant’s claim or invoice; • payment of civil works requires the claim or invoice from the and a summary of

work progress certified by the project engineer approved by the Recipient's authorized representative.

B. COMMITMENT PROCEDURE (page 26 of the Handbook) 4. This procedure is where ADB, at the Recipient's request, provides an irrevocable undertaking to reimburse a commercial bank for payments made or to be made to a supplier against a letter of credit (LC) financed from the Grant account. Requirements

• A signed application for issuance of commitment letter in the form ADBCL (see Appendix 6) is submitted to ADB together with a summary sheet for the commitment letter (see Appendix 9) and the required supporting documents. A separate application is required for each currency in which a commitment letter is requested.

66 Appendix 8

Supporting Documents 5. Supporting documents to be submitted to ADB with the application for commitment letter include:

• a contract or confirmed PO, if not yet submitted earlier to ADB; and • two signed copies of the LC against which ADB’s commitment letter is requested.

Amendments to the LC 6. The Recipient requests ADB’s approval of amendments to the LC as soon as the LC amendment is obtained from the LC issuing bank (see Appendix 17). Copy of the signed amendment must be attached to the request. 7. ADB communicates its approval to the nominated commercial bank and the Recipient by the form shown in Appendix 18 or by authenticated SWIFT, tested telex, or a formal letter of approval. 8. ADB can allow the Recipient, in urgent cases, to send its application for approval to amend the LC by fax. The message is to include Grant number, commitment letter number, LC number, and nature and reason for the amendment. Copy of the LC amendment should be attached to the application. 9. The message must state that the amendment has been made by the LC issuing bank and that the application for approval of amendment of LC and a copy of the LC amendment are being airmailed to ADB. 10. Amendments to the LC for: (i) extending the expiry date and shipping dates up to the Grant closing date; and (ii) other amendments except those mentioned in para. 8.18 need not be submitted to ADB for approval. The Recipient merely informs ADB using the standard form (see Appendix 19) and submits a signed copy of the amendment. This will ensure ADB’s prompt payment of claims received from the nominated commercial bank. Amendments Requiring ADB’s Prior Approval 11. ADB’s prior approval is required for amendments to the LC involving changes such as

• extension of the LC expiry date beyond the Grant closing date of the Grant account, as specified in the Grant agreement, or otherwise extended by ADB;

• change in the LC’s value or currency; • description or quantity of goods; • country of origin; • beneficiary; and • terms of payment.

12. The nominated commercial bank(s) are to copy all proposed amendments to ADB for its information or approval.

Appendix 8 67

C. REIMBURSEMENT PROCEDURE (page 30 of the Handbook) 13. This procedure is one where ADB pays from the Grant account to the Recipient's account or, in some cases, to the project account for eligible expenditures which have been incurred and paid for by the project out of its budget allocation or its own resources. 14. Under this procedure, ADB’s payments are made only to the Recipient or EA and not to a third party, and this procedure normally requires submission of full supporting documentation. Requirements

• A signed withdrawal application (see form ADB-DRP/RMP in Appendix 5) must be submitted to ADB together with a summary sheet (see form ADB-RMP-SSin Appendix 8) and the required supporting documents.

• A separate withdrawal application must be submitted for each currency. • A separate summary sheet must also be submitted for each Grant category or

subcategory grouping items claimed by contract number. • The expenditures should have been incurred and paid for by the Recipient out of

its own fund sources.

Supporting Documents

• ADB is to receive the withdrawal application with the contract or confirmed PO, if not yet submitted to ADB;

• a copy of the invoice/bill/claim and delivery receipt; and • the evidence or receipt of payment showing the amount paid, the date of receipt,

and the payee. Statement of Expenditure (SOE) Procedure 15. Statement of Expenditures procedure is a simplified procedure requiring no submission of supporting documentation. The procedure derives its name from the SOE form which is submitted with the withdrawal application. The SOE replaces the usual supporting documents and the summary sheet. The SOE form provides data on contracts and disbursements up to the authorized ceiling amount. In the SOE, the Recipient certifies that

• expenditures have been incurred and paid for under the terms and conditions of the Grant agreement;

• records are maintained and are available for examination by ADB disbursement/review missions and independent auditors; and

• payments have not been split just to enable it to pass through the threshold prescribed under the SOE.

16. The SOE forms available are:

• SOE form for contracts of US$20,000 and below (see Appendix 22); • SOE form for contracts over US$20,000 (see Appendix 23); • SOE form for noncontract items, mostly related to operating and overhead

expenses (see Appendix 24); and

68 Appendix 8

• SOE form (free format) for items not provided in the other SOE forms (see Appendix 25).

17. The statement of expenditure procedures may be used for liquidating or replenishing the imprest account. Such procedures shall apply to contracts not exceeding $20,000. 18. Where ADB subsequently finds any payment made under SOE procedure to be insufficiently supported or ineligible for ADB financing, ADB may offset the amount of the unjustified or ineligible payment against subsequent withdrawals for reimbursement or request the Recipient or EA to refund the same amount to the Grant account. D. IMPREST FUND PROCEDURE (page 37 of the Handbook) 19. This is a procedure where ADB makes an advance disbursement from the Grant account for deposit to an imprest account to be used exclusively for ADB’s share of eligible expenditures. The following conditions must exist before the Recipient is allowed to use the procedure: (i) need for the procedure, (ii) Recipient's capability, and (iii) audit arrangements. Requirements

• A signed withdrawal application for imprest account (see Appendix 7) must be submitted to ADB together with a statement of the estimated ADB share of project expenditures on form ADB-IFP-EES (see Appendix 29).

20. The Recipient is required to open, for the exclusive use of the project, a separate bank account for depositing advances. The imprest account shall be maintained in current account only and opened in the Recipient's name. The Account may be opened at the Central Bank of the Recipient's country or in a commercial bank the Recipient designates, provided that the institution chosen is capable of executing foreign exchange and local currency transactions, opening letters of credit and handling a large volume of transactions, and issuing detailed monthly bank statements promptly. 21. The ceiling and initial amount of the imprest account will not exceed $8 million. Liquidation/Replenishment 22. As eligible expenditures are incurred and paid from the Account, the Recipient requests liquidation/replenishment of the Account by submitting a withdrawal application and the applicable summary sheet using the form in Appendix 8 if full documentation is required or Appendix 22 to 25 if SOE procedure is approved. The corresponding bank statement and reconciliation statement (see Appendix 30) should also be submitted with the application. Withdrawal application must be prepared in the currency of the Account. E. INSTRUCTIONS FOR WITHDRAWALS 23. Before the first withdrawal application (W/A) is submitted to ADB, the name of the authorized representative(s) must be provided to ADB, including the authenticated specimen signatures of the representative(s). 24. The W/A should be signed by the authorized representative(s), sequentially numbered and should not exceed five digits (00001, 00002, etc). The cover letter of the W/A should include a

Appendix 8 69

sentence reconfirming that the contracts were awarded on the basis of tax exemption to ensure expeditious Grant disbursement by ADB. 25. For all withdrawals, ADB must receive a withdrawal application in the prescribed form. A withdrawal application is a written request from the Recipient to ADB to pay funds against the Recipient's Grant account. The application must reach ADB before the Grant closing date. The W/A forms and summary sheets to be used vary for the different procedures. A separate W/A for each currency requested should be submitted. A withdrawal application consists of

• the application itself in letter form (see Appendixes 5, 6, and 7 for sample formats); • summary sheet(s) for each category claimed (see Appendixes 8 and 9 for sample

formats); and • supporting documents, if required (see Appendix 10).

26. Before a disbursement is made for any contract issued by the Recipient, ADB has to prepare a Procurement Contract Summary Sheet (PCSS). Copies of all signed contracts and supporting documents should be sent to ADB as soon as they are available. This is a basis for ADB to monitor performance against the projected annual activities made at the start of the year. A PCSS number will be assigned by ADB for each contract received and these data will be relayed to the EA. The PCSS serves as an acknowledgement by ADB that the award of a contract has been checked and has been found to comply with ADB’s procurement guidelines. It also serves as a basis for disbursement. The PCSS is also numbered sequentially, not exceeding four digits, i.e. 0001, 0002, etc. The PCSS consists of the following basic information:

• ADB Contract No. or the PCSS No. • Date of ADB approval of the Award of Contract • Date of Contract Approval by the EA • Mode of Procurement • Name of contractor or supplier • Terms of payment and currency of contract • Component to which the expenditures will be charged

27. Without the PCSS, ADB’s Controller’s Department could not proceed with the processing of payment for the W/A. When an amendment or a variation of a contract is made, a copy of the variation order should also be sent to ADB, for updating of the PCSS. 28. To avoid delay in the processing of payment, the PCSS No. should be indicated in the W/A to be submitted by the EA. The PCSS No. should be shown in the summary sheet. 29. The W/A to be submitted to ADB must be the signed original copy to the attention of Mr. Y. Hirao, Financial Control Specialist, CTLA-5.

70 Appendix 9

PRO FORMA OF THE EXECUTING AGENCY’S PROJECT PROGRESS REPORT

A. Introduction and Basic Data 1. Provide the following:

(i) ADB Grant number, project title, Recipient, executing agency, implementing agency(ies);

(ii) total estimated project cost and financing plan; (iii) status of project financing including availability of counterpart funds and

cofinancing; (iv) dates of approval, signing, and effectiveness of ADB Grant; (v) original and revised (if applicable) ADB Grant closing date and elapsed Grant

period based on original and revised (if applicable) Grant closing dates; and (vi) date of last ADB review mission.

B. Utilization of Funds (ADB Grant, Cofinancing, and Counterpart Funds) 2. Provide the following:

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

(ii) cumulative disbursements from the ADB Grant, cofinancing, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets) [tabular and in the form of an S-curve showing scheulled and actual overall for the Project, and separated by major contract and type of expenditure]; and

(iii) reestimated costs to completion, need for reallocation within ADB Grant categories, and whether an overall project cost overrun is likely.

C. Project Purpose 3. Provide the following on an annual basis (Q4 Report) and when preparing for Grant review mission:

(i) 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;

(ii) 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;

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

(iv) 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 4. Provide the following:

Appendix 9 71

(i) assessment of project implementation arrangements such as establishment, staffing, and funding of the PCU;

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

(iii) progress or achievements in implementation since the last progress report; (iv) 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. (v) 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, the reference framework or guidelines in calculating the project progress including examples are shown in page 79; and

(vi) an assessment of the validity of key assumptions and risks in achieving the quantifiable implementation targets.

E. Compliance with Covenants 5. Provide the following on an annual basis (Q4 Report) and when preparing for Grant review mission:

(i) the Recipient's compliance with policy Grant covenants such as sector reform initiatives and EA reforms, and the reasons for any noncompliance or delay in compliance;

(ii) the Recipient's and EA’s compliance with financial Grant covenants including the EA’s financial management, and the provision of audited project accounts or audited agency financial statements; and

(iii) the Recipient's and EA’s compliance with project-specific Grant covenants associated with implementation, environment, and social dimensions.

F. Major Project Issues and Problems 6. 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 Grant proceeds).

II. FRAMEWORK AND GUIDELINES IN CALCULATING PROJECT PROGRESS A. Introduction 7. 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.”

72 Appendix 9

8. 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. 9. 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 10. As implementation activities and their corresponding weights will be incuded in the project administration memorandum. The actual project implementation progress of these activities will be reported regularly through the EA’s quarterly project progress report. To ensure ADB-wide consistency, the following framework has been established. 1. Compilation of Activity List 11. The implementation schedule should follow the critical path of the project’s major activities. Major implementation activities are:

• strengthening of Urban Water Supply and Sanitation Sector • developing and rehabilitating water supply systems • improving drainage and public santiation • enhancing community action and participation • enhancing Gender Equity in Urban Water Supply and Sanitation • Improving Capacity for Project Implementation and O&M

2. Assignment of Weights 12. Corresponding weights for each activity have been assigned to ensure that “project progress" measures the percentage of achievement for all events during the entire duration of the implementation schedule. Weights are shown in Table 1 below. 3. Computation of Project Progress 13. Project progress will be calculated using the following steps:

(i) Determine the actual percentage progress (nonfinancial) of each activity. (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. 14. Page 35 of this Appendix provides an illustration of this calculation using a generic sample implementation schedule.

Appendix 9 73

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.

Table 1: Implementation Schedule with Activities and Weights

74 Appendix 7

74 Appendix 7

Worksheet for Quarterly & Yearly Contract Awards/Commitments & Disbursement Projections ($ Million)( Important: Before completing this form, please read carefully the instructions printed at the back of this form. Refer to PAI Nos. 5.02. Issued in December 2001.)

PROJECT: PROJECTIONS MADE IN: GRANT/GRANT NO. SEGMENT NO. FUNDS (OCR, SF, ADF-IX, ATF 2/) COUNTRY (Acronym) (Month, Year)

QP QP QP QP QA QA QA QA QP QP QP QP QA QA QA QA

1/ In accordance with the allocation of Grant proceeds as defined in the Grant documents, or any other detailed breakdown if found useful. NOTES AND REMARKS: Page ___ of ___ pages 2/ ATF = Asian Tsunami Fund; Projections should be for the ADB-ATF financed component only. QP-01-20______ QA = Quarterly Actual (already awarded/committed/disbursed, when projections are prepared). QP = Quarterly Projected (to be awarded/committed/disbursed), when projections are prepared). ADB Form No. 16/06 Revised September 2005

Apr, May, Jun 20_____ Jul, Aug, Sep 20_____ Oct, Nov, Dec 20_____

TOTAL OF THIS PAGE___ OF___PAGES (To be carried on next page)

6

3

GRAND TOTAL (LAST PAGE)

QUARTER 1Contracts Awarded on

Previous Year(s) Jan, Feb, Mar 20_____

7

5

QUARTER 2

10

8

9

TOTAL (Carried Forward) FROM PREVIOUS PAGE ___ OF ___ PAGES

4

1

2

Month, YearContractAwarded

Contract Value(Bank Financed)

Month Awarded/Committed or To be

Awarded/Committed

Contract Value/Commitment (1)

DisbursementAmount Relatedto the Contract/Commitment (2)

QA

Month Awarded/Committed or To be

Awarded/Committed

QP DisbursementAmount Relatedto the Contract/Commitment (4)

Contract Value/Commitment (3)

QA

DisbursementAmount Related to

the Contract/Commitment

(10)=(2+4+6+8)

Contract Value/Commitment

(9)=(1+3+5+7)

QUARTER 4

Month Awarded/Committed or To be

Awarded/Committed

QP DisbursementAmount Relatedto the Contract/Commitment (8)

Contract Value/Commitment (7)

QA

Ref.LineNo.

Cate- gory 1/ CONTRACT/COMMITMENT ITEM /1

QUARTER 3

Month Awarded/Committed or To be

Awarded/Committed

QP DisbursementAmount Relatedto the Contract/Commitment (6)

Contract Value/Commitment (5)

QP

QA

TOTAL PROJECTED FOR THE YEAR 20___

(YP)=(QA) + (QP)

WORKSHEET FOR QUARTERLY AND YEARLY CONTRACT AWARDS/ COMMITMENTS AND DISBURSEMENT

PROJECTIONS (QP-01/20__)

Appendix 10 75

A. Introduction 1. This worksheet was developed as a result of the Bank's efforts to make more accurate the assessment of the liquid funds required to be held by the Bank during each year for making disbursements against ADB-financed Grants. This worksheet is provided to enable the Regional and Resident Offices, and the Project Divisions to develop realistic quarterly projections of their contract awards/commitments and disbursements. B. Completing the Worksheet 2. Each Regional and Resident Mission and each Project Division administering projects has been requested to observe the following instructions in completing the worksheet:

(i) PROJECT: Official name of the project. (ii) GRANT/GRANT NO.: ADB assigned Grant Number; SEGMENT NO.: ADB

assigned Grant Segment Number, if any; FUNDS: OCR, SF, etc.; COUNTRY: Abbreviated ADB acronym of the Borrowing Country.

(iii) PROJECTION MADE IN: Month and Year in which projections are prepared. (iv) "LINE" COLUMN: To be numbered in sequence for easy identification purposes. (v) "CATEGORY" COLUMN: Indicate the Category of Expenditure in accordance with

the Allocation of Grant Proceeds as defined in the Grant Documents. (vi) "CONTRACT/COMMITMENT ITEM" COLUMN: Indicate the Contract/Commitment

Item that corresponds to each Category. Indicate in detail each contract or bid package (or more detailed breakdowns if found useful) awarded prior to the preparation of this worksheet, or which will be awarded/committed during the projection year, under each Category of Allocation of Grant Proceeds.

(vii) "MONTH CONTRACT AWARDEDICOMMITTED OR TO BE AWARDEDICOMMITTED - CONTRACT VALUEICOMMITMENT" COLUMN: Indicate either the actual (QA) or projected (QP) month of award of contract/commitment and the actual/ estimated value of each contract/commitment eligible for Bank financing listed in the "Contract/Commitment Item" Column. In the upper portion of the blank space write (QA) and the date on which the contract/commitment was awarded/committed. When the Project Division anticipates that a contract/commitment will be awarded/committed in future quarters of the projection year; indicate (QP) and the month in the blank space under the quarter in which the contract/commitment is scheduled to be awarded/ committed. In the lower portion (double box), indicate the value of contract/commitment already awarded/committed (QA) or to be awardedlcommitted (QP)for each contract/commitment listed. Where the exact contract value/commitment is an estimate, you may supply (as an attachment) a list of the particular items included in the contract/commitment with cost estimate for each item., In the case where a contract/commitment has been awarded/ committed in previous years, but full or partial delivery is expected during the projection year, list Executing Agency's and/or ADB assigned Contract Number/Commitment and title in the "Contract/ Commitment Item" Column, as well as the contract award/ commitment date, the contract/commitment value in the "Contracts Awarded on Previous Year(s)" Column and the contract/commitment value (QP) available for Disbursement. Where the Executing Agency anticipates procurement through International Shopping (IS) procedure, list the procurement in the appropriate "Category" and "Contract/Commitment Items Columns as IS. In such a case, the Executing Agency should furnish a list of all items to be procured

76 Appendix 10

through IS with the estimated cost of each item as an attachment. While it may be difficult to determine or project an accurate date of award of contracts/commitments for IS items, it is essential to work out a realistic time schedule for the award of such contracts (BASED ON CONTRACT SIGNING DATE)l commitment as well as the estimated schedule and amounts of disbursements relevant to such contractslcommitments.

(viii) "DISBURSEMENT AMOUNT RELATED TO THE CONTRACT/ COMMITMENT" COLUMN: Indicate the disbursement amount projected (OP) to take place for each contract/commitment listed in the "Contract/Commitment Item" Column during the applicable quarters of the projection year. The commercial portion of existing contracts/commitments should be referred to define the commercial payment terms of each contract. Where the Executing Agency is projecting to award contracts or to approve commitments during the projection year, for which payment terms or delivery time are unknown, make assumptions in the projections (OP) of disbursements in each quarter of the projection year. Interest During Construction (IDC), if any, should also be included in the Disbursement Projections.

(ix) "TOTAL” COLUMNS: Summarize the entire yearly projected contract awards value/commitments and disbursement amount under each Contract/Commitment Item. Total all the projections of contract awards/commitments and disbursements for each Contract/Commitment Item for the four quarters of the projection year. Total for the projection year is the summation of Quarterly Actuals (QA) plus Quarterly Projected (QP). Yearly: (YP) = (QA) + (QP).

(x) "TOTAL OF THIS PAGE_OF_PAGES" LINE: It is devised to help in carrying on the totals horizontally and vertically computed from one page to the following page; the totals will be reported in the "Total from Previous Page ___ of ______Pages" line of the subsequent page.

C. Notes 3. This form will be distributed, which is printed and distributed in September of each year, to SB4HPMB for it to provide the information in yearly and quarterly breakdowns of projections IN TIME TO MAKE IT POSSIBLE TO REACH THE ADB HEADQUARTERS NOT LATER THAN THE 10TH OF JANUARY OF THE PROJECTION YEAR.

Appendix 11 77

PROJECT COMPLETION REPORT

Suggested Topics for Project Completion Reports to be Prepared by Recipients

I. PROJECT DESCRIPTION A. Objectives B. Components 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 Recipient and EA with Grant covenants, with reasons

for noncompliance or delays in compliance and the remedial actions taken. F. State reasons for any delays in Grant utilization. Evaluate the appropriateness of the

disbursement methods used. Justify the reallocation of Grant 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.

78 Appendix 11

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 12 79

FINANCIAL REPORTING AND AUDITING REQUIREMENTS

1. ADB's Handbook for Recipients on the Financial Governance and Management of Investment Projects Financed by the ADB (the Booklet) provides guidelines to ensure timely compliance with the Grant covenants and the quality of financial information as required by ADB. 2. ADB, by its Charter, is required to ensure that the proceeds of any Grant made, guaranteed, or participated in by ADB are used for the purposes for which the Grant was approved. ADB requires accurate and timely financial information from its Recipients/recipients to be assured that expenditure was for the purposes stated in the Grant agreement. 3. The following are the main requirements:

(i) ADB requires the EA to maintain separate project accounts and records exclusively for the Project to ensure that the Grant funds were used only for the objectives set out in the Grant Agreements.

The first set of project accounts to be submitted to ADB covers the fiscal year ending 30 September 2010 As stipulated in the Grant or Project Agreements, they are to be submitted up to six months after the end of the fiscal year. For this Grant, the deadline is by 31 March 2011.

(ii) The accounts and records for the project are to be consistently maintained by

using sound accounting principles. The external auditor is to express an opinion on whether the financial report has been prepared using international or local generally accepted accounting standards and whether they have been applied consistently.

ADB prefers project accounts to use international accounting standards prescribed by the International Accounting Standards Committee. The name of external auditor is to comment on the impact of any deviations, by the Executing Agency from international accounting standards.

(iii) The external auditor specifies in the Auditor's Report the appropriate auditing

standards they used, and direct them to expand the scope of the paragraph in the Auditor's Report by disclosing the key audit procedures followed. The external auditor is also to state whether the same audit procedures were followed for all supplementary financial statements submitted.

ADB wishes that auditors conform to the international auditing standards issued by the International Federation of Accountants. In cases where other auditing standards are used, the external auditor is requested to indicate in the Auditor's Report the extent of any differences and their impact on the audit.

(iv) The external auditor's opinion is also required on whether

• the proceeds of the ADB's Grant have been utilized only for the project as

stated in the Grant Agreement; • the financial information contains data specifically agreed upon between

the Recipient or EA and ADB to be included in the financial statements; • the financial information complies with relevant regulations and statutory

requirements; and

80 Appendix 12

• compliance has been met with all the financial covenants contained in the Grant or Project Agreements.

(v) The Auditor's Report is to clearly state the reasons for any opinions that are

qualified, adverse, or disclaimers. (vi) Actions on deficiencies disclosed by the external auditor in its report are to be

resolved by the Recipient or Executing Agency within a reasonable time. The external auditor is to comment in the subsequent Auditor’s Report on the adequacy of the corrective measures taken by the Recipient or EA].

4. Compliance with these ADB requirements will be monitored by review missions and during normal project supervision, and followed up regularly with all concerned, including the external auditor.

Appendix 13 81

GRANT 0143-LAO: SMALL TOWNS WATER SUPPLY AND SANITATION Grant Covenants

Loan Agreement, Schedule 4 Para. No.

Covenants Status/Remarks

1. Project Executing Agency: MPWT, the Executing Agency, shall be responsible for the overall implementation of the Project. In each participating province, the DPWT shall be the implementing agency.

2. Steering Committee: The PSC for the NCRWSSP (Grant 0016) is expanded and assigned to oversee this Project to provide overall direction and policy guidance. The PSC shall be chaired by the Vice-Minister of MPWT, with the Director General of DHUP as the Vice-Chairman, Members of the PSC shall include representatives from the Business Promotion Office of the Prime Minister's Office, Dept of Foreign Relations, MOF, Dept of SOE Financial Management, MOF, the Dept of International Cooperation of the Ministry of Planning and Investment, and the director of the PCU. The members of the PSC shall meet at least once every 6 months or more often if required.

3. PPSC to be established in each participating province, except for those where only rehabilitation works will take place, to guide subproject implementation, make key decisions on behalf of the provincial government and coordinate provincial and district agencies. Each PPSC shall be chaired by a provincial vice governor and comprise the following members: the district governor of the relevant subproject town, senior officials from the DPWT, Dept of finance, Dept of Health, PNP, the OPWT and the PIU Managers. The PPSC shall meet at least once in every 6 months or more if required. At the district level, the district governor or vice governor shall oversee, monitor progress, review quality of the work undertaken for the Project and coordinate subproject activities with the PIU and the local communities, and report relevant progress to the PPSC.

4. Project Coordinating Unit: PCU established for the NCRWSSP in the DHUP is expanded to include the responsibilities for overall planning, coordination and management of the Project. The Director of PCU shall be assisted by 2 deputy directors under the Project. The PCU shall be supported by international and national consultants recruited under the Project.

5. Project Implementation Unit: Establish a PIU within each DPWT of the participating provinces. Each PIU shall be headed by a manager and a deputy manager, both to be selected from the PNP or DPWT concerned. Each PIU shall be responsible for day-to-day Project implementation at the local level and shall comprise expert staff in (a) administration and finance, (b) water supply and sanitation, and (c) community action and participation. The PIU, with the PCU's assistance, shall be responsible for the day-to-day coordination and supervision of Project implementation at the district level. In the case where the LWU is contracted for implementing the CIPP at the district level, the respective PIU shall be responsible for verifying that the contracted activities have actually been completed prior to the corresponding progressive payments are made by the PCU.

6. Implementation Arrangements: The Recipient shall ensure that, within 6 months from the effective date, the MPWT develops a detailed eligibility criteria and procedures for the scholarship program satisfactory to ADB,

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with the assistance of the consultants recruited under the Project and in accordance with the relevant procedures of the Recipient.

7. The Recipient shall also ensure that under Part 4, poor households are provided with a grant for sanitation improvements (a) at an amount equivalent to $100 for each poor household that elects to connect to the water supply system and construct pour flush latrines, and (b) an amount less than $100 equivalent for those who decide not to connect, but to improve their toilet facilities otherwise. Poor household eligibility criteria and the opening procedures shall be determined by the PCU in agreement with ADB.

8. Project Review, Accounting, Auditing and Reporting: The Recipient shall jointly with ADB, undertake a comprehensive review after: (a) 12 months from the effective date; and (b) 30 months from the effective date. These reviews shall include a comprehensive evaluation of Project implementation arrangements, detailed evaluation of the Project scope, the actual implementation progress, feedback from the PPME program, performance of consultants, institutional development progress, and possible reallocation of the Grant proceeds. The cost recovery mechanisms for each subproject, the financial and operational performance of the relevant PNPs, and overall sector regulatory system shall also be evaluated.

9. Each PIU to prepare quarterly progress reports and submit them to the PCU for consolidation and subsequent reporting to the PSC and the Co-financiers, including a periodic review of progress against the training needs assessment of the PIUs. Each PNP shall prepare its annual financial statement, including the (a) balance sheet, (b) income statement, and (c) cash flow statement within 4 months after the end of each fiscal year. The SGIS, relevant statement of expenditures, and the financial statements of the PNPs shall be audited annually by auditors acceptable to ADB. The PCU and PIUs shall prepare the required information for audit, including the information on resettlement implementation, in accordance with the project auditing requirements of the Recipient and ADB. Audited statements of the Project accounts and financial statements of PNPs, together with the report of the auditors, shall be submitted to ADB through the PCU within 6 months after the end of each related fiscal year, including the audit opinions on (a) the use of the SGIA and (b) the use of statement of expenditure procedures.

10. Project Performance Monitoring and Evaluation: The Recipient shall ensure that a comprehensive program for PPME, acceptable to ADB, is carried out by the PCU during Project implementation. Such a PPME program shall aim to: (a) examine the Project's technical performance; (b) evaluate the delivery of the planned facilities; (c) assess the achievement of the Project's objectives; and (d) measure the Project's social, economic, financial, and institutional impacts. The PIUs shall be responsible for carrying out the PPME activities, including pre-Project and post-Project physical and socioeconomic surveys, data collection and analysis. Each PIU shall establish a PPME baseline based on the pre-Project surveys and data. Annual PPME reports shall be prepared by each PIU, and consolidated by the PCU for submission to ADB. The Recipient shall cause an external monitor to undertake independent monitoring and evaluation of social, resettlement and environment activities, and the relevant costs shall be met from the resources made available for the Project. MPWT shall cause PCU to submit a detailed PPME implementation plan, for ADB's review and concurrence, within 6 months from the Effective Date.

11. Subproject Selection and Implementation

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Screening Criteria: The 21 small towns which have already been identified, assessed and prioritized by the Recipient shall be the candidate towns for subprojects. The order in which subprojects are implemented shall be determined by the PCU in consultation with ADB, based on the principles agreed with ADB. For reasons of cost, efficiency and expediency, Subprojects shall be prepared and implemented in geographic groups of 3 or 4, to the extent possible.

12. Based on the priority assigned to each of the 21 towns, the PCU shall screen each of the proposed subprojects for its respective readiness according to the applicable criteria in paras. 13 and/or 14. If a particular participating province and its PNP are not considered by the PCU as ready for implementing the subproject proposed, such subproject shall be assigned a lower priority, and the participating province and PNP in question shall be required to enhance their readiness before being further considered under the Project. After a proposed subproject is screened and confirmed for its readiness, the PCU shall prepare a feasibility study and determine whether it meets the eligibility criteria before the proposed subproject can be approved, the PCU shall prepare and submit an appraisal report to ADB, which shall describe the PCU's findings and conclusion, together with relevant supporting data, on each of the criteria.

13. Each subproject proposal for development of new water supply system shall be screened against the following criteria:

(a) shall have been listed in the Recipient's Water Supply Sector Investment Plan, as amended from year to year, and been given high development priority by central, relevant provincial and district governments;

(b) shall not have a significant piped water supply system and there shall have been a reasonable demand for piped water supply;

(c) the subproject town population shall be projected by the Recipient to be more than 4,000 by 2015;

(d) the subproject town shall have an approved urban master plan, which includes the core areas under consideration for water supply development or rehabilitation;

(e) the PIU shall have been established and submitted a training needs assessment;

(f) the provincial and district governments and the relevant PNP shall have agreed to adopt the Recipient's water sector policies, cost recovery principles and tariff reforms as agreed by the Recipient and ADB;

(g) the PNP shall have undertaken regular flow and quality measurements for the potential sources of water for the subproject to town concerned;

(h) the relevant PNP shall have continued to implement a set of immediate actions aimed at improving its operational performance and sustainability;

(i) the provincial governor shall have confirmed support for the PNP concerned to participate in the corporatization process; and

(j) the subproject shall not have been considered for funding by another external donor.

14. Each subproject proposal for rehabilitation of existing water supply systems shall be screened against the same criteria as specified in items (e) to (j) above. In addition, the works required shall (i) be limited to those for improving supply reliability, distribution pressures, or enhancing water quality to meet WASA guidelines; (ii) the minor and related costs be kept to a minimum, with a maximum cost of $150,000 equivalent unless

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otherwise agreed by ADB; (iii) not be caused by lack of O&M; and (iv) exclude system expansion and capacity augmentation.

15. Eligibility Criteria: Each subproject shall meet the following eligibility criteria:

(a) provincial government and PNP shall have confirmed their agreement to adopt the recipient's water sector policies and tariff reforms as agreed by the recipient and ADB;

(b) provincial government and the PNP shall have agreed to: (i) adopt sanitation regulations for the subproject town concerned, which shall have been approved in advance by ADB; and (ii) provide adequate budget allocations to meet the O&M costs of the subproject's drains and public sanitation facilities;

(c) provincial government and central government agencies shall have (i) endorsed the relevant LACP and agreed to implement it in accordance with the Recipient's and ADB's relevant policies; and (ii) endorsed the environmental assessments prepared in accordance with the Recipient's and ADB's relevant policies;

(d) PNP shall have (i) identified potential sources of surface water or groundwater supply for the proposed subproject; (ii) collected adequate flow and water quality data for each potential source to demonstrate adequate minimum flows and establish water treatment requirements for at least 3 dry and wet seasons; and (iii) prepared a draft corporate plan;

(e) A feasibility report shall have been prepared, which shows that the proposed subproject (i) meets ADB's and the Recipient's technical, economic, financial, and institutional requirement for the Project; (ii) covers only the most densely populated core villages in the relevant area; (iii) can generate sufficient revenues to meet full O&M costs and service the relevant subproject loan; (iv) does not have significant negative social or environmental impacts; (v) contains adequate analysis on the subproject's impact on ethnic groups; (vi) has been classified as Category "B" (non-sensitive) or "C" according to ADB's environmental classification, and as Category "B" or "C" according to ADB's resettlement classification; and

(f) The PCU shall have confirmed that the relevant participating province, district and PNP are ready to implement the proposed subproject based on their assessment of: (i) the relevant PIU having established, with qualified and competent staff appointed, and adequate training provided; (ii) the capacity and plans of the relevant PNP being adequate to manage, operate and maintain the proposed water supply system, including arrangements for ongoing training, technical and management support; (iii) the debt service capacity of the PNP having been reviewed and evaluated; and (iv) the tariffs level in the participating province concerned having been reviewed and adjusted as needed to financially sustainable levels.

16. Subproject Loans: The recipient shall relend 30% of the budgeted capital cost of the water supply system proposed under each subproject to the PNP of the participating province under an SLA acceptable to ADB. The balance of 70% capital cost shall be provided by the Recipient to such PNP as a grant.

17. Connection Fees: Each subproject shall ensure that (a) the relevant participating PNPs waive upfront fees for only the domestic households that apply for water supply connection; and (b) households that receive a connection are required to pay a monthly fee that covers water

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consumption, turnover tax and basic administration fee (Para. 17) 18. Other Obligations: MPWT shall (a) cause all participating PNPs to

monitor water quality and quantity data of the relevant potential raw water sources for urban water supply, and (b) ensure that the least-cost solution for each subproject system, as determined from a comprehensive feasibility study that focuses on appropriate water treatment technology and service areas, is adopted.

19. Subproject Disbursement Conditions Tariffs Each participating PNP adopts a provincial utility-wide progressive tariff structure with 3 consumption blocks, namely lifeline, middle, highest, prior to disbursement of funds for a relevant subproject whereby the average tariff is set at such levels to be able to (a) recover full O&M costs and gradually increasing depreciation; and (b) maintain a dept service coverage ratio of 1.2:1. The Recipient shall cause each participating PNP to undertake an annual assessment, satisfactory to the recipient and ADB, of the tariff levels in order to determine the tariff adjustments required for the subsequent year. On the basis of each assessment, the Recipient shall cause each PNP to implement the aforesaid tariff adjustments by 1 April of each year.

20. Outstanding Water Bills: The recipient shall ensure that (a) each participating PNP collects all water bill arrears in accordance with the plans to be agreed upon by the Recipient, ADB and each participating PNP before any disbursement of funds for the subproject that such PNP is implementing; and (b) each participating PNP reduces and maintains accounts receivable to less than 90 days. Where the water bills of any agency of the recipient are outstanding for 60 days or more, the recipient shall, within a further 30 days, allocate from its budgetary resources and provide to the concerned PNP sufficient funds to fully liquidate the outstanding accounts.

21. Approval and Disclosure of PNP Corporate Plans: Each participating PNP submits a corporate plan as approved by its board and acceptable to the MPWT and ADB, and have such corporate plan disclosed on the designated website agreed by the MPWT and ADB prior to any disbursement with respect to a subproject.

22. Sector Strategy and PNPs: (a) within 6 months from the Effective Date, a human resources development strategy for the urban water supply sector, including the scholarship program, is developed by the MPWT, in a manner satisfactory to ADB, and (b) at least 30% of the scholarships provided under the Project are reserved for and allocated to female candidates.

Due date: 26 Oct 09 - Compliance to be discussed with the EA. In view of Aus/AIDE withdrawal of funding.

23. Within 24 months from effective date, an urban water supply and sanitation strategy, acceptable to ADB, is approved by the MPWT and implemented accordingly.

Due date: 27 March 2011

24. Within 30 months from effective date, the relevant policies and guidelines for the urban water supply and sanitation sector are reviewed, and if necessary, revised to further clarify and strengthen the social, economic, financial, and administrative targets for the sector in a manner satisfactory to ADB. The Recipient shall also ensure that, within 36 months from effective date, the revised policies and guidelines are approved and implemented accordingly.

Due date: 26 Oct 2011

25. Each participating PNP commences implementation of its 3-year rolling corporate plans, incorporating the specific action plans aimed at transforming the relevant PNP into a more efficient and autonomous water

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supply company with specific mandate, objectives and targets and more commercial focus. Each such corporate plan shall at least include: (a) mission statement and corporate objectives; (b) standards, performance indicators and targets; (c) tariffs; (d) market analysis; (e) management and organization review; (f) related action plan and detailed activities; (g) 3-year financial forecast; and (h) capital investment program.

26. Within 24 months from the date the first subproject of a PNP is determined by the PCU to be eligible, such PNP has brought its enterprise registration certificate and institutional structure fully into line with the requirements of the Enterprise Law of the Lao PDR (2005).

27. Environment, Land Acquisition and Resettlement: Each subproject, an IEE is prepared in accordance with the Environmental Assessment and Review Framework agreed by the Recipient and ADB as submitted by the Recipient on 2 Oct 2008, and sent by MPWT to ADB for approval prior to the award of relevant contract for civil works. Subprojects are designed and implemented in accordance with the Recipient's relevant laws and regulations, and the requirements of ADB's Environment Policy (2002).

28. Each subproject, an LACP is prepared in accordance with the Land Acquisition and Compensation Framework agreed by the Recipient and ADB as submitted by the Recipient on 2 October 2008, and sent by MPWT to ADB for approval prior to the award of relevant contract for civil works. The Recipient shall also ensure that all LACPs are designed and implemented in accordance with the recipient's relevant laws and regulations, and the requirements of ADB's Policy on Involuntary Resettlement (1995). If there is any discrepancy between the Recipient's relevant laws and regulations, and the requirements of ADB's Policy on Involuntary Resettlement (1995), ADB's policy shall apply.

29. Gender: MPWT to ensue that the Gender Action Plan, prepared for the Project in agreement with the Recipient, is fully implemented, including but not limited to (a) meeting the relevant targets for the involvement and participation of women in Project activities; (b) training stakeholders on gender issues related to the urban water supply and sanitation sector; and (c) collecting sex-disaggregated data for the purposes of monitoring the project implementation.

30. Ethnic Groups: MPWT to ensure that each subproject is designed and implemented in accordance with ADB's Policy on Indigenous Peoples (1998) and the Ethnic Groups Development Framework agreed by the Recipient and ADB as submitted by the Recipient on 2 Oct 2008 for the Project.

31.

Labor Standards: The MPWT to ensure that (a) the Works contracts contain provisions prohibiting use of child labor and differentiation in wages between male and female workers for work of equal value; (b) such contracts also include mandatory provisions on health, sanitation and appropriate working conditions; and (c) contractors and their workers observe local protocols concerning acceptable behavior toward the local population.

32. Health: The MPWT shall ensure that activities for HIV/AIDS prevention are mainstreamed in the Project through the following measures: (a) contractors disseminate information on the risks of sexually transmitted infections, including HIV/AIDS to the workers they employ under the Project and to the local communities; and (b) HIV/AIDS messages are integrated in awareness and behavior change activities under Part 4, in subproject towns that are situated in close proximity of the Recipient's international borders.

Appendix 12 87

LIST OF ADB REFERENCE MATERIALS

A. Project Related 1. Report and Recommendation of the President to the Board 2. Grant Agreement 3. Supplementary Appendixes B. Consultants. May be downloaded from the following website:

http://www.adb.org/Opportunities/Consulting/Documents.asp 4. Guidelines on the Use of Consultants by ADB and Its Borrowers C. Procurement. May be downloaded from the following website:

http://www.adb.org/Opportunities/Procurement/prequalification-bid-documents.asp 5. Guidelines on Procurement under ADB Grants 6. Guide on Bid Evaluation D. Disbursement 7. Disbursement Letter Issued by Controller’s Department 8. Grant Disbursement Handbook E. Anticorruption Policy - May be downloaded from the following website:

http://www.adb.org/integrity/default.asp F. SUPPLEMENTARY APPENDIXES: available upon request

G. e-Handbook on Project Implementation

This e-Handbook includes

• a one-stop center with online links to ADB policies, procedures, and documents related to project implementation, including standard bidding documents and harmonized request for proposals; and

• a practical guide on project implementation with an online tutorial and templates on project management, incorporating the critical path method.

The e-Handbook is an aid to executing and implementing agencies of AsianDevelopment Bank (ADB) projects, ADB staff, and project consultants andmanagers

Visit the site: http://www.adb.org/documents/handbooks/Project-Implementation/