Project Administration Manual - Project Number: 42334-014 July 2014 - Asian Development Bank
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Rural Roads Improvement Project II (RRP CAM 42334) Project Administration Manual Project Number: 42334-014 July 2014 Kingdom of Cambodia: Rural Roads Improvement Project II
TABLE OF CONTENTS
Page
ABBREVIATIONS
I. PROJECT DESCRIPTION 1
II. IMPLEMENTATION PLANS 3
A. Project Readiness Activities 3
B. Overall Project Implementation Plan 4
III. PROJECT MANAGEMENT ARRANGEMENTS 7
A. Project Implementation Organizations – Roles and Responsibilities 7
B. Key Persons Involved in Implementation 9
C. Project Organization Structure 9
IV. COSTS AND FINANCING 11
A. Detailed Cost Estimates by Expenditure Category 13
B. Allocation and Withdrawal of Loan and Grant Proceeds 14
C. Detailed Cost Estimates by Financier 18
D. Detailed Cost Estimates by Outputs 21
E. Detailed Cost Estimates by Year 22
F. Contract and Disbursement S-curve 23
G. Fund Flow Diagram 24
V. FINANCIAL MANAGEMENT 25
A. Financial Management Assessment 25
B. Disbursement 25
C. Accounting 26
D. Auditing 27
VI. PROCUREMENT AND CONSULTING SERVICES 28
A. Advance Contracting and Retroactive Financing 28
B. Procurement of Goods, Works and Consulting Services 28
C. Procurement Plan 29
D. Consultant's Terms of Reference 34
VII. SAFEGUARDS 66
VIII. GENDER, LABOR, AND SOCIAL DIMENSIONS 68
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND
COMMUNICATION 71
A. Project Design and Monitoring Framework 71
B. Monitoring 74
C. Evaluation 74
D. Reporting 74
E. Stakeholder Communication Strategy 75
X. ANTICORRUPTION POLICY 79
XI. ACCOUNTABILITY MECHANISM 80
XII. RECORD OF PAM CHANGES 81Project Administration Manual Purpose and Process 1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. 2. The Ministry of Rural Development is the wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by MRD of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. 3. At Loan Negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the Loan agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail. 4. After ADB Board approval of the project's report and recommendations of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM.
Abbreviations ADB – Asian Development Bank BEC – Board of Engineers of Cambodia DBST – double bituminous surface treatment DDIS – detailed design and implementation supervision DCDM – Department of Cooperation and Debt Management DMF – design and monitoring framework EARF – environmental assessment and review framework EIA – environmental impact assessment EMP – environmental management plan FIDIC – Federation Internationale des Ingenieurs-Conseil GAP – gender action plan GOA – Government of Australia HHTPP – HIV/AIDS and human trafficking awareness and prevention program ICB – international competitive bidding IEE – initial environmental examination KEXIM – Export-Import Bank of Korea km – kilometer MEF – Ministry of Economy and Finance MRD – Ministry of Rural Development NCB – national competitive bidding NGOs – nongovernment organizations NDF – Nordic Development Fund PAM – project administration manual PDRD – provincial department of rural development PMU – project management unit PPMS – project performance monitoring system PPCO – provincial project coordination office PPCR – Pilot Program for Climate Resilience QBS – quality based selection QCBS – quality- and cost-based selection RRP – report and recommendation of the President SEO – Social and Environment Office SOE – statement of expenditure SPS – Safeguard Policy Statement STI – sexually-transmitted infections TOR – terms of reference UNIAP – United Nations Interagency Project on Trafficking UXO – unexploded ordnance
I. PROJ
JECT DESC
CRIPTION
1. The
T project will
w rehabilita ate about 72 29 kilometerrs (km) of rrural roads in nine provvinces
(Banteayy Meanchey y, Battamba ang, Kampo ong Cham, Kampong Chhnang, Kampong S Speu,
Kampong g Thom, Purrsat, Siem Reap,
R and Taakeo) to pavved condition n. The rehabbilitated road
ds will
provide poor
p rural prrovinces with a safer, coost-effective
e rural road network with h all-year acccess
to marke ets and oth her social services. The
T project will also ssupport a ssustainable road
maintenaance regime e in the Minnistry of Rural Develop pment (MRD D), a commu unity-based road
safety prrogram, HIV//AIDS and human
h traffic
cking aware eness and prrevention prrogram (HHT TPP),
and clim
mate change adaptation measures. The feasib bility study o
of the propoosed projectt was
completeed through the Rural Ro oads Improv vement Proje ect1, and a pproject prep
paratory techhnical
2
assistancce.
2. mpact and Outcome. The
Im T impact of the proje ect is improvved access to markets, jobs,
and social services in nine proje
ect province
es. This imp pact is consiistent with the sector re
esults
framework of the Cambodia
C Transport
T Seector Assesssment, Stra ategy, and Roadmap.3 The
outcome of the project is a saffe, climate-rresilient, andd cost effecctive rural ro
oad networkk that
provides all-year ac
ccess in thee agricultural areas of tthe nine pro oject provinces. These nine
provinces
s are popula
ated by a large proportio
on of Cambo odia’s rural p
poor.
3. Outputs.
O The ect: (i) rural road improvvements; (ii) rural
ere are five key outputs in this proje
road ass
set managemment; (iii) rurral road safe
ety and com
mmunity awa areness proggram; (iv) prroject
managemment supporrt; and (v) co
onnectivity im
mprovementts for Mekon ng River Islan
nds.
4. Rural
R Roads s Improvem ments. The first
f output iss improveme ent of aboutt 729 km off rural
roads to climate res d condition. Out of the twelve civill works contracts under this
silient paved
output, one
o will be a pilot perfo
ormance-bas sed contractt over a 5.55-year durattion.4 This ooutput
also inclu
udes green planting
p and
d design and implementa ation supervvision consullting servicess.
5. Rural
R Road Asset Man nagement. The T second output of th he project w
will improve rural
road ass set managem ment in a suustainable manner
m throu
ugh a strong g capacity-b
building proggram.
This prog gram will co
ontinue the interventionss initiated in
n Loan 2670 0,5 including
g the overloa ading
preventioon program for
f rural roads to efficien
ntly manage e the road asssets.6 This output continues
its focus on improvem ment the ove
erall constru
uction indust ry for rural rroad maintennance as inittiated
during Loan
L 2670,, including capacity developmen
d t of provin ncial deparrtments of rural
developm ment (PDRD D) who impleement road maintenance
m e works and d capacity buuilding trainiing of
local ma aintenance contractors. Further, the output will also introduce ccapacity building
approach hes for gradual reduction of force acccount by P PDRDs throu ugh lessons learned from m the
ongoing similar intervention in the Ministry y of Public Works and Transport.7 The outpu ut will
provide hands
h on capacity buildding PDRD staff in the e implementtation of performance-b based
1
ADB. 20 010. Report and d Recommend dation of the Prresident (RRP)) to the Board of Directors: P Proposed Loan to the
Kingdomm of Cambodia for Rural Road ds Improvemen nt Project. Mannila (Loan 2670
0-CAM).
2
Four outtputs were designed under Lo oan 2670-CAM M (footnote 1). FFor the remainning output, AD DB provided a pproject
preparattory technical assistance:
a ADB. 2013. Propoosed Rural Roa ads Improveme ent Project II: T
Technical Assisstance
to the Kiingdom of Cammbodia for Prep
paring the Mekoong River Islannd Connectivityy Output. Manila (TA 8322-CA AM).
3
ADB. 2011. Cambodia Transport Sec ctor Assessmen nd Roadmap. M
nt, Strategy, an Manila.
4
There arre 12 civil work
ks contracts planned under the
t project. On ne contract undder road impro ovement in Kam mpong
Cham Province is planned under the performance-b based contract scheme.
5
Footnotee 1.
6
Rural Rooad Asset Management Output (accessible from the list off linked docume ents in Append dix 2 of the RRP
P).
7
ADB. 20 009. Report an nd Recommen ndation of the President to the Board off Directors: Pro oposed Loan to the
Kingdomm of Cambodia for the Road Asset
A Managem ment Project. MManila (Loan 24406-CAM).2
s for the maintenance of
contracts o RRIP reha
abilitated roa
ads, through
h NCB contrracts for a p
period
of 3 yearrs.
6. Rural
R Road Safety an nd Community Aware eness Prog gram. The third output will
increase the awaren ness and appplication of road
r safety and safegua ards by (i) ffurther expannding
the pilot community--based road d safety awareness pro ogram initiatted in Loan n 2670, inclu uding
education program forf schools, drivers, roa ad users, annd the comm munity that a also incorpoorates
road safeety provision
ns in road design;
d (ii) further
f stren
ngthening the capacity o of the socia
al and
environmment office in MRD established
e in 2012; (iiii) impleme
enting an H HHTPP and d (iv)
conductinng a sex disaggregated baseline socioeconomicc survey of p project bene eficiaries.8
7. Project
P Mana agement Suupport. The e fourth outpput is to stre
engthen the capacity of MRD
to provide efficient project management sup pport for proj ect implemeentation. Thee project will also
promote substantial positive emp ployment an nd gender im mpacts in thee rural commmunities undder all
outputs. The Genderr Action Plan n (GAP) will incorporate e all the labo
or and gende er mainstrea
aming
in all 5 project outp puts. Throug
gh lessons learned from m ongoing Loan 2670, the projecct will
strengtheen MRD’s focus
f more on all outp puts equally as the ten ndency has been some ewhat
inclined towards
t road d improveme
ent activities
s. This will b e achieved tthrough incrreased MRD D staff
resourcees in social, gender,
g and safeguards areas.
8. Connectivity
C y Improvem ments for Me ekong Rive er Islands. T The fifth output has two
o sub-
outputs: (i) to rehabilitate roads and jetties within a 5-i sland clusteer in the Meekong River (Koh
Mitt, Koh
h Pir, Koh Samrong,
S Ko
oh Soutin, annd Koh Thm mei) in orderr to improve e climate ressilient
access and
a connecctivity. The civil works contract fo or rehabilitaating roads and jetties also
includes provisions for small-sc cale levees and water management interventions to minimize
flooding; and (ii) too develop a climate change
c adaaptation fram mework and d its assocciated
investmeents of mino or activities of multisecttor nature ( agriculture, renewable energy, tou urism,
water supply, etc.) th
hat will be deesigned and implemente ed during the e proposed project, incluude a
community-based em mergency management
m system. Altthough this output will bbe piloted fo
or the
Mekong River Island cluster, it may
m be replic cated in othe
er similar are mote access.9
eas with rem
Tab
ble I-1: List off Proposed R
Rural Roads
Roaad Le
ength
Province ID
D Road Nam me District (km)
Banteay
y BC1 Thmaorr Pourp-Phea as Thbaung Thmor Poourk/Svay Che ek 27.2
Meancheey BC22 Sala Krrav-Pheas Thbaung Preah Netrpreah/Svay Chek 17.4
BC33 Chub Vary-Ponley
V Preah Netrpreah/Phno om Srok 27.0
BC44 Prek Chhik-Thnal Bott Mongkol BBorei 9.1
BC66 Or Nhor-Ta Sol Mongkol BBorei 10.0
Subtotal (5
5 roads) 90.7
Battamb
bang BB1 Ou Ta Ki-Ta
K Kream Thmor Kool/Banan 19.6
BB2
2 Chroy Sdao-Nikom
S Thmor Kool 6.0
BB3
3 Ta Meuun-Taa Poungg Thmor Kool 8.7
BB4
4 Sdao-O
O Khum Rattana M
Mondol 29.2
BB5
5 Sdok Pravoeuk-Svay y Yor Rokkha KKiri 14.2
BB7
7 Kampong Preang-Sv vay Cheat Sangke 11.6
BB10 Preak Chik-Prey
C Tra
alach Rokkha KKiri 5.5
7 roads)
Subtotal (7 94.8
8
Rural Ro
oad Safety and d Community Awareness
A Program Output (accessible frrom the list of linked docume
ents in
Appendix 2 of the RRPP).
9
ments for Mekong River Isla
Connecttivity Improvem ands Output (a
accessible fromm the list of llinked docume
ents in
Appendix 2 of the RRPP).3
Road Length
Province ID Road Name District (km)
Kampong KC1 Veal Toch-Kabas Memot/Dambe 43.0
Cham KC3 Khlong Tboung-Beung Chroung Memot 13.0
KC4 Phlak Samraong-Teuk Tum Memot 24.8
KC5 Memot-Don Roath Memot 9.8
KC6 Mream Teak-Trapeang Rusey Tboung Khmum 25.2
KC7 Phsa Torsu-Chroy Sosit O Reang Ov/Kaoh Soutin 17.2
Subtotal (6 roads) 133.0
Kampong KCH1 Chheu Neak-Preal Rolea Bier 4.1
Chhnang KCH2 Thmar Reab-Veal Sbov Rolea Bier/Teuk Phos 22.9
KCH12 Thnal-Alaing Ke Teuk Phos/Samaki Meanchey 11.5
Subtotal (3 roads) 38.5
Kampong KSP1 Kreang Kcheay-Kandal Phnom Sruoch 18.6
Speu KSP2 Talat-Kandal Phnom Sruoch 23.1
KSP5 Phsa Slab Leng-Sala Basedth 33.5
Subtotal (3 roads) 75.2
Kampong KT1 Thnort-Au Angkor Stoung/Prasat Balangk 40.0
Thom Subtotal (1 road) 40.0
Pursat PS2 O Tapoang-Rom Lech Bakan 8.6
PS3 Trapeang Chorng-Beung Bakan 16.1
Botkandal
PS4 Trapeang Chorng-Khna Toteung Bakan 5.1
PS5 Talo-Prahal Bakan 13.1
PS6 Trapeang Chorng-Snam Preah Bakan 14.3
PS7 Beung Khnar-Phteas Rong Bakan/Phnom Kravanh 21.9
PS9 Phteas Prei-Sre Sdok Pursat Town/Kandieng 18.0
PS10 Kandieng-Sre Sdok Kandieng 12.0
PS11 Bak Chinchean-Phteas Rong Phnom Kravanh 8.2
PS13 O Sandan-Kampong Po Krakor 8.2
Subtotal (10 roads) 125.5
Siem Reap SR4 Khchas-Chan Sar Sout Nikom 17.0
SR7 Angkor Chum-Puok Puok 29.5
Subtotal (2 roads) 46.5
Takeo TK1 Tram Kok-Mungkol Meanlech Tram Kok 16.5
TK2 Pich Sa-Sobin Kirivong 18.3
Subtotal (2 roads) 34.8
Mekong River Islands Kampong Siem/Kao Soutin/ 50.0
Krouch Chhmar (2)
Total Project Roads 729.0
II. IMPLEMENTATION PLANS
A. Project Readiness Activities
2014 Who
Indicative Activities Apr May Jun Jul Aug Sep Oct Nov responsible
Advance contracting √ ADB and
actions MRD/MEF
Finalize project √ MRD
implementation
arrangements
ADB Board approval √ ADB4
2014 Who
Indicativ
ve Activities Apr May Jun
n Jul A
Aug Sep Oct Nov
v responsiible
Loan signing √ ADB and R
RGC
Governm ment legal opinion √ RGC
provided
Governm ment budget √ MEF/MRD
D
inclusion
n
Loan effeectiveness √ ADB and R
RGC
ADB = Asian Developmeent Bank; MEF
F = Ministry of Economy and Finance; MRD
D = Ministry of Rural Develop
pment;
RGC = Royyal Governmen
nt of Cambodia
a.
B. Overall
O Proje
ect Impleme
entation Pla
an
9. The
T Project is s expected to be implemmented overr a period off 6 years staarting 2014 up to
2020. Ov verall projec
ct implementtation plan is shown beelow. The ovverall projecct implementtation
plan will be updated annually by MRD and ADBA based o
on actual phyysical progre
ess.Project Implementation Schedule
2014 2015 2016 2017 2018 2019 2020
Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ADB Loan Processing
Advance Action: Recruitment of DDIS
consultants services and
procurement of EQ1 to EQ4
CS1A: Detailed Design and
Implementation Supervision for ADB
Financing etc.
Project Management
CW 1: Improve 6 roads, 133.0 km
(Kampong Cham)
CW 2: Improve 2 roads, 34.8 km
(Takeo)
CW 3: Improve 3 roads, 75.2 km
(Kampong Speu)
CW 4: Improve 3 roads, 38.5 km
(Kampong Chhnang)
CW 5: Improve 22 roads, 311.0
km (Pursat, Banteay
Meanchey, and
Battambang)
CW 6: Improve 2 roads, 46.5 km
(Siem Reap)
CW 7: Improve 1 road, 40.0 km
(Kampong Thom)
CW 9: Green Planting in
Kampong Cham, Takeo,
and Kampong Speu
CW 10: Green Planting in
Kampong Chhnang,
Pursat, and Battambang
CW11: Green Planting in Banteay
Meanchey, Siem Reap,
and Kampong Thom
CS2: Rural Road Asset
Management
52014 2015 2016 2017 2018 2019 2020
6
Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CS3: Sustainable Community-
Based Road Safety
Program
CS4: HIV/AIDS and human
trafficking awareness and
prevention program
Preparation of future project*
CW8: Improve Mekong River
Island roads, 50 km, and
11 jetties
CS5: Climate Change Adaptation
Framework Design and
Implementation
CW12: Climate Change Adaptation
Framework of Investments
*This is an activity under CS1A, separated for presentation clarity.
ADB = Asian Development Bank, CW = civil works, DDIS = detailed design and implementation supervision, km = kilometer, MRD = Ministry of Rural Development
Q = quarter.7
III. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations – Roles and Responsibilities
Project Implementation
Organizations Management Roles and Responsibilities
Ministry of Rural reinforce existing PMU with the required staffing;
Development timely provision of agreed counterpart funds for
(Executing Agency) project activities;
complying with all loan covenants (social and
environmental safeguards, economic, and others);
and
ensuring project’s sustainability during post
implementation stage and reporting to ADB on
assessed development impacts.
Project Management overall project implementation, management, and
Unit (Implementing coordination;
Agency) initiate and coordinate effective communication
between all stakeholders of the Project;
recruiting consultants;
finalizing surveys, detailed design, bidding
documents, and contract awards;
monitoring and evaluation of project activities and
outputs, including periodic review, preparation of
review reports reflecting issues and time-bound
actions taken (or to be taken);
involving beneficiaries and civil society
representatives in all stages of project design and
implementation;
public disclosure of project outputs;
quality assurance of works, and services of
consultants and counterpart staff;
establishing strong financial management system
and submitting timely withdrawal applications to
ADB, conducting timely financial audits as per
agreed timeframe and taking recommended
actions; and
preparing regular periodic progress reports, and
project completion report and their timely
submission to ADB
designing future project
Provincial Project execute and/or monitor civil works in the
Coordination Office respective provinces
provide effective coordination between all the
stakeholders of the project at the provincial level
including:
PMU;
DDIS consultant team, as well as other
consultants of the project;
Local authorities and project beneficiaries8
Project Implementation
Organizations Management Roles and Responsibilities
especially women groups;
coordinate with the SEO and local authority and
villagers to carry out their task especially on social
and gender, as well as resettlement issues;
assist project technical officers to monitor and
evaluate the progress and performance of
consultants and contractors; and
receive instructions from and reports to the project
manager
Ministry of Economy signing the loan agreements for the financing
and Finance required for the Project;
monitoring of loan and project implementation;
and providing respective coordination and
facilitation;
allocating and releasing counterpart funds and
oversight body for procurement, disbursements
and resettlement matters;
endorsing to ADB the authorized staff with
approved signatures for withdrawal applications
processing; and
processing and submitting to ADB any request;
when required, for reallocating the loan proceeds
ADB assist MRD and its PMU in providing timely
guidance at each stage of the project for smooth
implementation in accordance with the agreed
implementation arrangements;
review all the documents that require ADB
approval;
conduct periodic loan review missions, a mid-term
review, and a project completion mission;
ensure compliance of all loan covenants
review and monitoring of project implementation
activities and compliance with loan covenants
(sector reforms, social and environmental
safeguards, economic, and others);
timely process withdrawal applications and
release eligible funds;
ensure the compliance of financial audits
recommendations;
regularly update the project performance review
reports with the assistance of MRD; and
regularly post on ADB web the updated project
information documents for public disclosure, and
also the safeguards documents as per disclosure
provision of the ADB safeguards policy statement.
ADB = Asian Development Bank; DDIS = detailed design and implementation supervision; PIU = project
implementation unit; PMU = project management unit; MRD = Ministry of Rural Development, SEO = social
environmental office.9
B. Key
K Persons
s Involved in Implemen
ntation
Executing
E Agency
A
Ministry
M of Rural
R Develo
opment H. E. Chan Darong
Director Ge
eneral for Te
echnical Affa
airs
Corner Roaad #169 and d Soviet Bouulevard
Phnom Pen nh, Cambod dia
Telephone No. +855 12 2 599599
Email addre
ess: darongchan@gmaiil.com
ADB
A
Transport
T an
nd Communications Hideaki Iwa
asaki
Division Director
Telephone No.(63-2) 6
632 6433
Email addre
ess: hiwasaki@adb.org
Mission
M Leader Shihiru Datte
Senior Trannsport Specialist
Telephone No. (63-2) 6632 6782
Email addreess: sdate@
@adb.org
C. Project
P Orga
anization Sttructure
10. The
T Project Managemen
M t Unit (PMU) has been e established and operatin ng since 201
10 for
the impleementation of Loan 2670. The Pro oject will be
e implementted by PMU U with reinfo
orced
technicall staff, additional unit, and additional staff in various un nits. The additional unitt, the
ng and Evalluation Unit will have 2 staff. An a
Monitorin additional asssistant project manage er will
also be appointed.
a PMU
P will continue to im
mplement, m manage, and coordinate project actiivities
P II. Additional staffing re
for RRIP equirements ntified and rrecruited as appropriate. The
s will be iden
organization chart ofo the curre ent PMU is shown belo ow, with the e aforemen ntioned propposed
additions
s:PROJECT MANAGEMENT UNIT
10
Minister
H.E. Chea Sophara
Legend:
Existing positions
Project Coordinator
Proposed position H.E. Suos Kong
Notes:
* Additional PIU will be established late. Project Director
** 2 existing and 1 additional H. E. Chan Darong
*** 2 existing plus 2 additional positions.
Project Manager
Mr. Song Sophal
Assistant
Project Manager
Administration Finance and Monitoring Technical Social and Economic
Environment Project
Procurement and Team Office
Office Implementation
Evaluation
Administrative Units (9)*
Officer Finance Officer Engineers (3) Chief Economists (3)*
Monitoring
Assistant Officer Project
Assistant Road Safety Coordinators
Administrative Vice Chief
Finance Officer Engineer (9)
Officer Evaluation
Officer
Road Asset Resettlement
Finance, Specialist Technical
Utility Management Engineers (9)
Administration, Specialist
and Cashier
Environment
Drivers (7) Specialists (2) Social
Climate Environmental
Procurement Change Officers (9)
Officer Specialist
Social & Gender
Specialists (4)**
Information Drivers (9)
Technology
Specialist11
IV
V. COST
TS AND FIN
NANCING
11. The
T financing plan is in Table 2. The Gove ernment of Australia w will provide grant
cofinanciing of AUD7 7,600,000. ADB
A minister the grant, equivvalent to $6.67 million a
will adm at the
exchange e rate preva e time of fact-finding. T
ailing at the The Government of Ko orea, through h the
Export-Immport Bank of Korea will provide a tied-paralle el loan of $441 million eqquivalent for rural
road improvements. This loan n will finan nce civil wo orks and d design and implementtation
supervisiion consultin ng services. The grant will jointly finance rura provements, rural
al road imp
road ass set management, rural road safety y, and com mmunity awa areness proogram, base ed on
different ratios for ea
ach cost cateegory and/orr subcategorry. The Nord dic Developmment Fund (NDF)
will provide grant coffinancing of EUR4,000,0 000. NDF w will finance, b
based on diffferent ratioss, the
civil work
ks for green planting and d climate chhange adapttation and co onsulting services for cliimate
change adaptation. ADB will also a adminiister the grrant, equiva alent to $5.4 million a at the
exchange e rate preva ailing at the
e time of fa act-finding. BBoth grants will be den nominated in n US
dollars pursuant
p to ADB’s
A standdard accoun nting practicces.10 NDF and ADB w will jointly fin
nance
Connectiivity Improve ements for Mekong Riv ver Islands,, with green n planting under rural rroads
improvem ments. The Governmen nt of Cambo odia will fina
ance taxes a and duties iin the amou unt of
$8.66 million (through exemption ns) for all ou
utputs, and ssupplementa ary allowancces in the am mount
of $2.49 million (in kind) under project management sup pport.
12. A summary of
o project inv
vestment pla
an is in Table
e IV-1 and the tentative financing plan is
in Table IV-2.
Tab
ble IV-1: Pro
oject Investtment Plan
($
$ million)
Item nta
Amoun
b
A. Base
B Cost
1.
1 Rurall Road Improvvements 75.99
9
2.
2 Rurall Road Asset Managementt 1.10
0
3.
3 Rurall Road Safetyy and Commu unity Awarene
ess Program 2.26
6
4.
4 Proje
ect Manageme ent Support 2.11
1
5.
5 Connnectivity Impro
ovements for Mekong Riveer Islands 13.71
1
Subtotal (A) 95.17
7
B. Contingencie
C sc
1.
1 Physical 2
9.52
2.
2 Price 10.61
1
C. Financing
F Charges During Implementattiond 2.93
3
Totall (A+B+C) 118.23
3
a
Includes taxes and dutties of $8.66 million
m (through
h exemption) a nd $2.49 millio on Governmen nt contribution ffor the
project management
m coost, in kind, exc
cluding $0.71 million
m for allow
wances.
b
In March h 2014 prices.
c
Physical contingencies s computed at 10% of base costs.
c Price conntingencies computed for forreign exchange e costs
and loca al currency cossts based on th he annual ratees in the table below; includees provision for potential excchange
rate flucttuation under th
he assumption of a purchasin ng power parityy exchange rate e.
Annual Rate 2014 2015 2016 2
2017 20
018 20119 2020
Foreign Currency 1.9% 2.2% 1.9% 1
1.8% 1.8
8% 1.8%
% 1.8%
Local Cu
urrency 3.0% 3.5% 3.5% 3
3.5% 3.5
5% 3.5%
% 3.5%
d
Includes interest charg
ges and servic
ce charges. Interest for ADB loan during co onstruction has been compu uted at
1.0% per annum during g the grace perriod. Service chharge for the G
Government of A
Australia grantt is $0.34 millio
on, and
for Nordiic Developmennt Fund (NDF) grant
g is $0.25 million.
m
Source: Assian Developme ent Bank.
10
This amo
ount may be ad
djusted for currrency fluctuatio
ons to match th
he grant amoun
nt received by A
ADB.12
Table IV-2: Financing Plan
Source Amount ($ million) Share of Total (%)
Asian Development Bank: Asian Development Fund (loan) 54.00 45.67
Cofinanciersa
Government of Australia (grant)b 6.67 5.64
Export-Import Bank of Korea (loan) 41.00 34.68
Nordic Development Fund (grant)b 5.40 4.57
Government 11.16 9.44
Total 118.23 100.00
a
The cofinancing is calculated at the exchange rate prevailing at 31 January 2014.
b
This will be administered by ADB. This amount also includes ADB’s administration fee, audit costs, bank charges,
and a 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.
Source: Asian Development Bank.A. Detailed Cost Estimates by Expenditure Category
ITEMS Currency ($ million)
A. Base Costs Local Foreign Total % Local % Foreign Base Costs
1A. Rural Roads Improvement – Civil Works 37.35 29.72 67.07 55.69 44.31 70.47
1B. Consulting Services for Design and Supervision 3.57 5.35 8.92 40.00 60.00 9.37
2. Rural Road Asset Management 0.44 0.66 1.10 40.00 60.00 1.16
3. Rural Road Safety and Community Awareness Program 1.69 0.57 2.26 74.76 25.24 2.37
4. Project Management Support 1.90 0.21 2.11 90.00 10.00 2.22
5. Connectivity Improvements for Mekong River Islands 7.55 6.17 13.71 55.02 44.98 14.41
Subtotal (A) 52.50 42.68 95.17 55.15 44.85 100.00
B. Contingencies
1. Physical 5.25 4.27 9.53 55.15 44.85 10.01
2. Price 7.35 3.27 10.62 69.20 30.80 11.16
Subtotal (B) 12.60 7.55 20.15 62.56 37.44 21.17
C. Financial Charge During Implementation
1. Interest During Implementation 1.60 1.30 2.91 55.15 44.85 3.05
Subtotal (C) 1.60 1.30 2.91 55.15 44.85 3.05
Total Project Cost (A+B+C) 66.70 51.53 118.23 56.42 43.58 124.23
1314
B. Allocation and Withdrawal of Loan and Grant Proceeds
Allocation and Withdrawal of Loan Proceeds
CATEGORY ADB FINANCING
Percentage and Basis for
Amount Allocated (SDR) Withdrawal from the Loan
Number Item Category Subcategory Account
1 Works 28,419,000
1A CW1 7,313,000 90% of total expenditure
Improve 6 roads, 133.0 km claimed*
(Kampong Cham)
1B CW2 1,921,000 90% of total expenditure
Improve 2 roads, 34.8 km (Takeo)
claimed*
1C CW3 3,750,000 90% of total expenditure
Improve 3 roads, 75.2 km claimed*
(Kampong Speu)
1D CW4 2,503,000 90% of total expenditure
Improve 3 roads, 38.5 km claimed*
(Kampong Chhnang)
1E CW6 2,890,000 90% of total expenditure
Improve 2 roads, 46.5 km (Siem claimed*
Reap)
1F CW7 2,140,000 90% of total expenditure
Improve 1 road, 40.0 km claimed*
(Kampong Thom)
1G CW8 7,430,000 100% of total expenditure
Improve Mekong River Island claimed*
roads, 50 km, and 11 jetties
1H CW9 168,000 50% of total expenditure
Green Planting in Kampong Cham, claimed*
Takeo, and Kampong Speu
1I CW10 181,000 50% of total expenditure
Green Planting in Kampong claimed*
Chhnang, Pursat, and Battambang
1J CW11 123,000 50% of total expenditure
Green Planting in Banteay claimed*
Meanchey, Siem Reap, and
Kampong Thom
2 EQ Equipment (vehicles, 155,000 100% of total expenditure
computer, furniture)** claimed*
3 Consulting Services 3,958,000
3A CS1A: Detailed design and 3,214,000 81% of total expenditure
implementation supervision claimed*15
CATEGORY ADB FINANCING
Percentage and Basis for
Amount Allocated (SDR) Withdrawal from the Loan
Number Item Category Subcategory Account
3B CS2: Road Asset Management 233,000 30% of total expenditure
Program claimed*
3C CS3: Sustainable Community- 433,000 44% of total expenditure
based Road Safety Program claimed*
3D CS4: HIV/AIDS & Human 78,000 12% of total expenditure
Trafficking Prevention and claimed*
Awareness Program
4 Incremental costs (Project 912,000 100% of total expenditure
Management) claimed*
5 Interest Charge 1,474,000 100% of total amount due
Total 34,918,000
ADB = Asian Development Bank, CS = consulting services; CW = civil works; EQ = equipment; km = kilometer.
* Exclusive of taxes and duties imposed within the territory of the Borrower.16
Allocation and Withdrawal of Grant Proceeds
GOVERNMENT OF
CATEGORY AUSTRALIA FINANCING
Percentage and Basis for
Amount Allocated ($) Withdrawal from the Grant
Number Item Category Subcategory Account
1 Works 3,430,000
1A CW1 1,220,000 10% of total expenditure
Improve 6 roads, 133.0 km claimed*
(Kampong Cham)
1B CW2 320,000 10% of total expenditure
Improve 2 roads, 34.8 km (Takeo) claimed*
1C CW3 630,000 10% of total expenditure
Improve 3 roads, 75.2 km claimed*
(Kampong Speu)
1D CW4 420,000 10% of total expenditure
Improve 3 roads, 38.5 km claimed*
(Kampong Chhnang)
CW6
1E Improve 2 roads, 46.5 km (Siem 10% of total expenditure
480,000
Reap) claimed*
1F CW7 360,000 10% of total expenditure
Improve 1 road, 40.0 km claimed*
(Kampong Thom)
3 Consulting 2,900,000
3A CS1A: Detailed design and 350,000 6% of total expenditure
implementation supervision claimed*
CS2: Road Asset Management 70% of total expenditure
3B 850,000
Program claimed*
3C CS3: Sustainable Community- 850,000 56% of total expenditure
based Road Safety Program claimed*
3D CS4: HIV/AIDS and human 850,000 88% of total expenditure
trafficking awareness and claimed*
prevention program
6 Unallocated** 340,000
Total 6,670,000
CS = consulting services; CW = civil works; km = kilometer.
* Exclusive of taxes and duties imposed within the territory of the Borrower.
** This will be administered by ADB. This amount also includes ADB’s administration fee, audit costs, bank charges,
and a provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the
interest and investment income earned on this grant, or any additional grant.17
Allocation and Withdrawal of Grant Proceeds
NORDIC DEVELOPMENT
CATEGORY FUND FINANCING
Percentage and Basis for
Amount Allocated ($) Withdrawal from the Grant
Number Item Category Subcategory Account
1 Works 2,610,000
1H CW9 260,000 50% of total expenditure
Green Planting in Kampong claimed*
Cham, Takeo, and Kampong
Speu
1I CW10 280,000 50% of total expenditure
Green Planting in Kampong claimed*
Chhnang, Pursat, and
Battambang
1J CW11 190,000 50% of total expenditure
Green Planting in Banteay claimed*
Meanchey, Siem Reap, and
Kampong Thom
1K CW 12: Climate Change 1,880,000 100% of total expenditure
Adaptation Framework of claimed*
Investments
3 Consulting 2,540,000
3A CS1A: Consulting Services 790,000 13% of total expenditure
for Detailed Design and claimed*
Supervision
3E CS5: Climate Change 1,750,000 100% of total expenditure
Adaptation Framework claimed*
Design and Implementation
6 Unallocated** 250,000
Total 5,400,000
CW = civil works.
* Exclusive of taxes and duties imposed within the territory of the Borrower.
** This will be administered by ADB. This amount also includes ADB’s administration fee, audit costs, bank charges,
and a 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.C. Detailed Cost Estimates by Financier
18
Financier ($ million)
Govt.
Govt. Taxes & Govt.
ITEMS ADB % KEXIM % GOAa % NDFa % Costb Dutiesc Total % TOTAL %
Base Costs
1A Rural Roads Improvements
CW1: Improve 6 roads, 133.0 11.31 82.03 0.00 0.00 1.22 8.88 0.00 0.00 0.22 1.03 1.25 9.09 13.79 100.00
km (Kampong Cham)
CW2: Improve 2 roads, 34.8 km 2.97 82.03 0.00 0.00 0.32 8.88 0.00 0.00 0.06 0.27 0.33 9.09 3.62 100.00
(Takeo)
CW3: Improve 3 roads, 75.2 km 5.80 82.03 0.00 0.00 0.63 8.88 0.00 0.00 0.11 0.53 0.64 9.09 7.08 100.00
(Kampong Speu)
CW4: Improve 3 roads, 38.5 km 3.87 82.03 0.00 0.00 0.42 8.88 0.00 0.00 0.07 0.35 0.43 9.09 4.72 100.00
(Kampong Chhnang)
CW5: Improve 22 roads, 311.0 0.00 0.00 37.23 90.91 0.00 0.00 0.00 0.00 0.65 3.07 3.72 9.09 40.96 100.00
km
CW6: Improve 2 roads, 46.5 km 4.47 82.03 0.00 0.00 0.48 8.88 0.00 0.00 0.09 0.41 0.50 9.09 5.45 100.00
(Siem Reap)
CW7: Improve 1 road, 40.0 km 3.31 82.03 0.00 0.00 0.36 8.88 0.00 0.00 0.06 0.30 0.37 9.09 4.03 100.00
(Kampong Thom)
CW9: Green Planting, Kampong 0.26 45.45 0.00 0.00 0.00 0.00 0.26 45.45 0.01 0.04 0.05 9.09 0.58 100.00
Cham, Takeo, Kampong Speu
CW10: Green Planting, 0.28 45.45 0.00 0.00 0.00 0.00 0.28 45.45 0.01 0.05 0.06 9.09 0.61 100.00
Kampong Chhnang, Pursat,
Battambang
CW11: Green Planting, Banteay 0.19 45.45 0.00 0.00 0.00 0.00 0.19 45.45 0.01 0.03 0.04 9.09 0.42 100.00
Meanchey, Siem Reap,
Kampong Thom
Subtotal 32.46 37.23 3.44 0.73 1.27 6.11 7.39 81.25
1B Consulting Services for Design
and Supervision
CS1A: DDIS for ADB 4.97 81.00 0.00 0.00 0.35 6.34 0.79 13.00 0.11 0.50 0.61 9.09 6.71 100.00
Prep. Future Project*
CS1B: DDIS for KEXIM roads 0.00 0.00 3.72 90.91 0.00 0.00 0.00 0.00 0.07 0.31 0.37 9.09 4.10 100.00
Subtotal 4.97 3.72 0.35 0.79 0.18 0.81 0.98 10.81
2 Rural Road Asset Management
CS 2: Rural Road Asset 0.36 27.27 0.00 0.00 0.85 63.64 0.00 0.00 0.02 0.10 0.12 9.09 1.33 100.00
Management
Subtotal 0.36 0.00 0.85 0.00 0.02 0.10 0.12 1.33
3 Rural Road Safety and
Community Awareness ProgramFinancier ($ million)
Govt.
Govt. Taxes & Govt.
ITEMS ADB % KEXIM % GOAa % NDFa % Costb Dutiesc Total % TOTAL %
CS3: Sustainable Community- 0.67 40.00 0.00 0.00 0.85 50.91 0.00 0.00 0.03 0.13 0.15 9.09 1.67 100.00
Based Road Safety Program
CS4: HIV/AIDS & Human 0.12 11.36 0.00 0.00 0.85 79.55 0.00 0.00 0.02 0.08 0.10 9.09 1.07 100.00
Trafficking Prevention and
Awareness Program
Subtotal 0.79 0.00 1.70 0.00 0.05 0.21 0.25 2.73
4 Project Management Support
EQ1: Project Management 0.07 90.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 9.09 0.08 100.00
Vehicle 1
EQ2: Project Management 0.07 90.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 9.09 0.08 100.00
Vehicle 2
EQ3: Office Furniture 0.05 90.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.09 0.05 100.00
EQ4: Computer Equipment 0.05 90.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.09 0.05 100.00
Incremental Administration 1.41 61.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.29 100.00
Costs**
Incremental Administration 0.71b 0.17 0.88 38.57
Costs
Subtotal 1.65 0.00 0.00 0.00 0.71 0.19 0.91 2.56
5 Connectivity Improvements for
Mekong River Islands
CW8 Improve Mekong River 11.49 90.91 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.95 1.15 9.09 12.64 100.00
island roads , 50 km and 11
Jetties
CS5: Climate Change 0.00 0.00 0.00 0.00 0.00 0.00 1.74 90.91 0.03 0.14 0.17 9.09 1.91 100.00
Adaptation Framework Design
and Implementation
CW12: Climate Change 0.00 0.00 0.00 0.00 0.00 0.00 1.87 90.91 0.03 0.15 0.19 9.09 2.06 100.00
Adaptation Framework of
Investments
Subtotal 11.49 0.00 0.00 3.61 0.26 1.24 1.51 16.61
Financial Charge (IDC***, Adm. etc.) 2.28 0.04 0.34 0.27 0.00 2.93
TOTAL 54.00 41.00 6.67 5.40 2.49 8.66 11.16 118.23
ADB = Asian Development Bank, CS = consulting services, CW = civil works, EQ = equipment, GOA = Government of Australia, IDC = interest during
construction, KEXIM = Export-Import Bank of Korea, NDF = Nordic Development Fund.
a
Administered by the Asian Development Bank. This amount also includes ADB’s administration fee, audit costs, bank charges, and a 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.
b
Government contributions are all in kind, except $0.71 comprising salaries and allowances under the incremental cost.
c
The Government contributions for taxes and duties are through exemptions.
19
* This is an activity under CS1A, separated for presentation clarity.** Comprising project administration cost.
20
*** IDC is only for ADB financing, other financing are grants.
Notes: Amounts and percentages may not match due to rounding off.
The costs in the table include both physical and price contingencies. The physical and price contingencies by financiers are:
Contingency ADB KEXIM GOA NDF Govt Total
Physical 4.27 3.38 0.52 0.42 0.92 9.52
Price 4.76 3.77 0.58 0.47 1.03 10.61
TOTAL 9.03 7.15 1.11 0.90 1.95 20.13D. Detailed Cost Estimates by Outputs
$ million
Output 1 Output 2 Output 3 Output 4 Output 5
Road Safety and Connectivity
Community Project Improvements
Rural Road Rural Road Asset Awareness Management for Mekong River
Total Improvements Management Program Support Island
ITEMS Cost Amount % Amount % Amount % Amount % Amount %
A. Base Costs
1A. Rural Road 67.07 67.07 100.00 0.00 0.00 0.00 0.00
Improvements – Civil
Works
1B. Consulting Services for 8.92 8.92 100.00 0.00 0.00 0.00 0.00
Design and Supervision
2. Rural Road Asset 1.10 1.10 100.00 0.00 0.00 0.00
Management
3. Rural Road Safety and 2.26 0.00 0.00 2.26 100.00 0.00 0.00
Community Awareness
Program
4. Project Management 2.11 0.00 0.00 0.00 2.11 100.00 0.00
Support
5. Connectivity 13.71 0.00 0.00 0.00 0.00 13.71 100.00
Improvements for
Mekong River Islands
Subtotal (A) 95.17 75.99 79.85 1.10 1.16 2.26 2.37 2.11 2.22 13.71 14.41
B. Contingency 20.15 16.07 79.77 0.23 1.15 0.48 2.37 0.45 2.22 2.92 14.49
C. Financial Charge during 2.91 2.56 88.02 0.03 1.16 0.07 2.39 0.06 2.23 0.18 6.19
Implementation
Total Project Cost (A+B+C) 118.23 94.62 80.03 1.37 1.16 2.80 2.37 2.62 2.22 16.81 14.22
21E. Detailed Cost Estimates by Year
22
$ million
YEAR
ITEMS Total Cost 2014 2015 2016 2017 2018 2019 2020 2021
A. Base Costs
1A. Rural Roads Improvements – 67.07 0.00 9.86 16.43 17.10 17.10 6.57 0.00 0.00
Civil Works
1B. Consulting Services for Design 8.92 1.78 1.78 1.34 1.34 1.34 1.34 0.00 0.00
and Supervision
2. Rural Road Asset 1.10 0.00 0.13 0.28 0.28 0.28 0.14 0.00 0.00
Management
3. Road Safety and Community 2.26 0.00 0.45 0.45 0.45 0.45 0.45 0.00 0.00
Awareness Program
4. Project Management Support 2.11 0.44 0.46 0.30 0.30 0.30 0.30 0.00 0.00
5. Connectivity Improvements for 13.71 0.00 1.96 3.43 3.60 3.60 1.13 0.00 0.00
Mekong River Islands
Subtotal (A) 95.17 2.23 14.64 22.23 23.06 23.06 9.94 0.00 0.00
B. Contingency 20.15 0.47 3.10 4.70 4.89 4.89 2.10 0.00 0.00
C. Financial Charge during 2.91 0.04 0.21 0.31 0.46 0.58 0.52 0.52 0.26
Implementation
Total Project Cost (A+B+C) 118.23 2.74 17.95 27.24 28.41 28.53 12.56 0.52 0.2623
F. Contract and Disbursement S-curve
Contract Awards
(Projections at Fact-Finding)
70.00
60.00
50.00
Amount in 40.00
Millions 30.00
20.00
10.00
0.00
2014 2015 2016 2017
Year
Year 2014 2015 2016 2017
Amount 6.71 44.47 62.11 63.72
Disbursements
(Projections at Fact-Finding)
60.0
50.0
40.0
Amount in
30.0
Millions
20.0
10.0
0.0
2014 2015 2016 2017 2018 2019 2020
Year
Year 2014 2015 2016 2017 2018 2019 2020
Amount 0.5 5.5 15.5 29.5 43.5 53.5 54.024
G. Fund Flow Diagram
ADB
MEF
Imprest
Account
MRD/PMU (ADB loan
Only)
Direct
Payments
Suppliers:
Consultants, Equipment
Civil Works
Contractors
Claims
Funds
ADB = Asian Development Bank, MEF = Ministry of Economy and Finance, MRD = Ministry of Rural Development,
PMU = Project Management Unit.25
V. FINANCIAL MANA
AGEMENT
A. anagement Assessmen
Financial Ma nt
13. The
T MRD and PMU have e implementted road pro ojects financced by ADB,, and the PM MU is
staffed with
w experien nced accoun ntants. Sincee the accou nting staff in
n the PMU iis experiencced in
financial manageme ent practice es for proje ects funded d by ADB, the financial manage ement
arrangemment for prroject implementation is generallyy considered d acceptable. Nonethe eless,
financial management risks are high in som me areas pa rticularly in internal con
ntrol and fina
ancial
managem ment capacity/ training need
n for stafff. Implemen
ntation of miitigation mea
asures desccribed
in the GR
RARMP will reduce the risk
r to low.
B. Disburseme
D nt
14. The
T Loan prroceeds, inc cluding ADB B administe ered co-finan ncier funds (grant from
m the
Governmment of Austtralia, and NDF
N grant), will be disb
bursed in accordance w with ADB’s Loan
Disburse
ement Handbbook (2012,, as amende ed from timee to time),111 and detaile
ed arrangem
ments
agreed upon
u betweeen the Gove ernment and ADB. The KEXIM loan n will not be administere
ed by
ADB.
15. Disbursemen
D nts for con ntracts for consulting services a and civil w works bid u under
internatio
onal compettitive bidding
g (ICB) proc cedures will be through h direct paym ment proced dures
defined in ADB’s Loan Disburse ement Handbook. Disbu ursements fo or incrementtal administrrative
expenditures will be through an imprest acco ount. MRD, in consultation with Min nistry of Econ
nomy
and Finaance (MEF), will open anda maintain n an imprestt account12 for the ADB B loan, unde er the
PMU in Phnom
P Penhh at the Natiional Bank of
o Cambodia a. The curren ncy of the im
mprest accou unt is
in US do ollar. All witthdrawal ap
pplications shall
s be pre
epared and submitted b by MRD to ADB
through MEF.
M The im
mprest accou unt will be established,
e managed, re eplenished, and liquidatted in
accordan nce with AD DB’s Loan Disburseme ent Handboo ok. MRD ha ave previou us experiencce in
administeering ADB fuunded projec ct accounts and they willl administerr the imprestt account.
13
16. The
T imprest account
a is to be used exclusively ffor ADB’s sh
hare of eligib
ble expendittures.
The executing agen ncy who esttablished the e imprest aaccount in itts name is accountable e and
responsible for propper use of advances to o the impreest account. The ceiling g of the immprest
account is 10% of the
t ADB loa an amount. The executting agencyy may reque est for initial and
additiona
al advances to the impre est account based on a n Estimate o of Expendituure Sheet se etting
out the estimated expenditures
e s to be financed throug gh the acco ount for thee forthcoming six
months. Supporting documents s should bee submitted to ADB orr retained b by the execcuting
agency, in accorda ance with ADB’s Loa an Disburse ement Hand dbook when liquidatin ng or
replenish
hing the imprrest accountt.
17. Statement
S off expenditure (SOE) ma ay be used to reimbursse eligible e
expendituress and
liquidate advances too the impres
st account to
o ensure spe
eedy projectt implementa
ation. The cceiling
for the SOE
S procedure will be e $50,000 per individuual paymen nt. SOE reccords should be
maintaineed and made readily available for re
eview by AD
DB's disburseement and rreview mission or
upon AD DB's request for submis ssion of sup
pporting doccuments onn a sampling basis, an nd for
11
Available
e at: http://www
w.adb.org/Docu uments/Handbo
ooks/Loan_Dissbursement/loa
an-disbursemen
nt-final.pdf.
12
Available
e in Chapter 100 of the Loan Disbursement
D Handbook.
H
13
Bank chaarges may be financed
f by the
e ADB loan.26
independdent audit.144 Reimburse
ement and liquidation o
of individual payments in excess o
of the
SOE ceiling should d be suppo orted by full documenttation when g the withdrawal
n submitting
applicatio
on to ADB.
18. Before
B the su
ubmission off the first withdrawal appplication, the Borrower should subm mit to
ADB suffficient evid dence of th he authority y of the pe erson(s) wh ho will signn the withdrawal
applicatio
ons on beha alf of the Bo
orrower, togeether with th
he authenticated specim men signaturres of
each autthorized pers son. The minimum value e per withdrrawal applicaation is $100
0,000 equiva
alent,
unless ottherwise app proved by ADB.
A Individuual paymentss below thiss amount sho ould generally be
paid from the imp prest account, or by the execut ing agencyy/implementing agency and
subseque ently claimed to ADB thrrough reimb bursement.
19. Counterpart
C Funds Inittial Advanc ce. PMU com mpletes a re equest for initial advance of
counterppart funds tog gether with supporting
s documents
d and submits to the MEF – Departme
a ent of
Investmeent and Coo operation (DIC).The max ximum amou unt of the a
advance of ccounterpart ffunds
will be agreed
a betw
ween the MR RD and/or Project
P Team m and the MEF. The rrequest for initial
advance must be siigned by the e authorizedd signatoriess of MRD/P Project and submitted to o the
MEF/DIC C. The requ uest must be recorde ed in the P Project Cou unterpart Fuunds Withdrawal
Applicatio
on Registerr. The MEF F/DIC reviewws the requ uest and su ubmits for aapproval of MEF
Managem ment. There eafter, arra
angements are made to transferr the fundss from Ge eneral
Department of Natio onal Treasuury Accountts to the Prroject’s Cou unterpart Fu
unds Design nated
Account. On receipt of advice fromf the National Bank of Cambod dia (NBC) orr other apprroved
financial institution th
hat the funds have been n deposited into the Co ounterpart Funds Design nated
Account, the receipt of the funds s should be recorded
r in tthe General Ledger and d the Governnment
Withdrawwal Applicatio on Register must be upd dated.
20. Counterpart
C Funds Reeplenishmen nt. PMU co ompletes the e request fo
or replenish
hment
and attac ches a stateement of acttual expenditure togethe er with the D
Disbursemennt Tracking Form
for countterpart funds g expenditurre documenttation must be maintained by the Prroject
s. Supporting
Team for subsequen nt review byy MEF or au udit. The reqquest must be signed bby the authoorized
signatoriees of MRD/P Project and submitted
s to
o the MEF/D DIC. The request must be recorded iin the
Project Counterpart
C Funds With
hdrawal Application Reg gister. The DDIC reviews the request and
submits forf approvall of MEF Ma anagement. Thereafter, arrangements are mad de to transfe
er the
funds fro om General Departmen nt of Nationaal Treasury Accounts tto the Proje ect’s Counte
erpart
Funds Designated
D Account.
A Onn receipt of advice from m the NBC or other ap pproved fina
ancial
institution
n that the fu
unds have be een depositeed into the C
Counterpart Funds Designated Acccount,
the rece eipt of the funds
f shoulld be recorded in the General Le edger and the Govern nment
Withdraw on Register must be upd
wal Applicatio dated.
C. Accounting
A
21. The
T MRD will maintain, or cause to t be mainttained, sepa arate books and record ds by
funding source
s for all
a expendittures incurre ed on the p project. MRD will prepa are consolid
dated
project financial
f sta
atements inn accordanc ce with thee governme ent's accouunting laws and
regulations which aree consistent with interna
ational accou
unting principles and pra
actices.
14
Checklis
st for SOE proc
cedures and forrmats are available in Append
dix 9 of the Loa
an Disburseme
ent Handbook.27
D. Auditing
A
22. The
T MRD will cause the detailed con nsolidated p project financcial statements to be au udited
in accorrdance with International Standard ds on Auditting and w with the Govvernment's audit
regulations, by an independen nt auditor acceptable
a tto ADB. Th he audited project fina ancial
statemen nts will be su
ubmitted in the
t English language
l to ADB within six months of the end o of the
fiscal yeaar by the MRD. The an nnual audit report
r he project acccounts will include an audit
for th
managem ment letter and
a audit op pinions whic ch cover (i) w whether thee project finaancial statem ments
present a true and fa air view or are
a presente ed fairly, in a all material rrespects, in accordance e with
the appliicable financ cial reporting framework k; (ii) whethher loan and d grant procceeds were used
only for the purposes of the project
p or not; (iii) the level of co ompliance fo or each fina ancial
covenantt contained in the legal agreeme ents for the project; (ivv) use of tthe imprest fund
procedurre; and (v) th he use of the statementt of expenditture procedu ure certifying g to the elig
gibility
of those expenditure es claimed under
u SOE procedures,
p and proper use of the S SOE and im mprest
procedurres in acco ordance with ADB’s Loan Disbu ursement H Handbook a and the prroject
documen nts. Complia ance with financial reporrting and au diting requirrements will be monitore ed by
review missions
m andd during no ormal progra am supervission, and fo ollowed up rregularly with all
concerne ed, includingg the externa al auditor. The
T MRD ha as been mad de aware off ADB’s policcy on
delayed submission, and the req quirements for
f satisfacto ory and acce eptable quallity of the au udited
project fiinancial stattements. AD DB reserves s the right to o require a change in the auditor (in a
manner consistent
c with
w the cons he borrower)), or for additional suppo
stitution of th ort to be provvided
to the au
uditor, if the audits
a required are not conducted
c inn a manner satisfactoryy to ADB, or if the
audits arre substantiaally delayed. ADB reserv ves the rightt to verify the e project's fiinancial acco ounts
to confirmm that the share
s of ADDB’s financin ng is used in accordan nce with AD DB’s policiess and
procedurres. Public disclosure of o the projec ct financial sstatements, including the audit repo ort on
the proje
ect financial statements, will be guid ded by ADB’’s Public Co ommunications Policy (2 2011).
After review, ADB wiill disclose th he project finnancial state ements for the project a and the opiniion of
the audittors on the financial sta atements witthin 30 dayss of the datte of their re eceipt by po osting
them on ADB’s webs site. The Aud dit Managem ment Letter w will not be diisclosed.28
VI. PROC
CUREMENT AND CONS
SULTING SERVICES
A. Advance
A Contracting
23. A advance contracting will be un
All n conformitty with ADB
ndertaken in B’s Procureement
Guidelinees (2013, asa amended d from time to time)15 and ADB’ss Guideliness on the Usse of
Consultaants (2013, asa amended d from time to time.16 T
The issuancce of invitatio
ons to bid u
under
advance contracting and will be e subject to ADB approvval. The Borrower and MRD have been
advised that
t approva al of advance contracting and retroa
active financcing does no
ot commit ADDB to
finance the Project.
24. Advance
A acttion will be e undertake en for the detailed d design and implementtation
supervisiion (DDIS) consulting services,
s us
sing quality- and cost b
based selecction method d, full
technicall proposals, with a ratio of 80:20. Un
nder advancce action beffore loan effe
ectiveness, ssteps
ntract negotiations will be conducted
up to con d
B. Procuremen
P t of Goods,, Works and
d Consultin g Services
25. All
A procureme s and works (except the
ent of goods e works and consulting sservices fina
anced
by KEXIM), will be undertaken
u in accordan
nce with AD B’s Procure
ement Guide elines and A ADB’s
Guideline
es on the Use
U of Consultants. KEX XIM will use
e LIB for wo
orks and QB BS for consulting
services..17
26. IC
CB procedures will be used for civil
c works ccontracts esstimated to cost $1,0000,000
million or
o more. National comp petitive biddiing (NCB) ffor goods wwill be adoptted for conttracts
estimated between $100,000 and $500,000. Shop pping will b be used fo or contractss for
procurem ment of work
ks and equip
pment worth less than $1 100,000.
27. When
W NCB iss proposed, before the start
s of any procuremen
nt, ADB and the Govern
nment
ew the bidding docume
will revie ents based on SOP of Cambodia to ensure consistencyy with
ADB’s Prrocurement Guidelines.
28. An
A 18-month h procureme ent plan inddicating thre
eshold and review pro ocedures, go
oods,
works, an
nd consulting service co
ontract packa
ages and NC CB guideline
es is in Section C.
29. All
A consultantts financed by ADB will be recruite d accordingg to ADB’s G Guidelines o
on the
18
Use of Consultants.
C Consulting
g services fin
nanced by EExport-Imporrt Bank of Ko
orea (KEXIMM) will
follow the
eir own cons
sultant selec
ction and reccruitment pro
ocedures. The terms of reference foor the
DDIS and HHTPP arre detailed in n Section D.
30. MRD
M will recruit a consulting firm forr the DDIS cconsultant, w
which will asssume the ro
ole of
the “Engineer” for th
he civil work
ks contracts.. The MRD will select tthe consulta ants using quality
and cost-based selection proced dure. The es stimated perrsonnel and person-month requirem ments
for each consulting services
s pacckage are provided
p in tthe table be
elow. All equ
uipment proccured
15
Available
e at: http://www
w.adb.org/Docu
uments/Guidelines/Procureme ent/Guidelines-Procurement.pdf.
16
Available
e at: http://www
w.adb.org/Docu
uments/Guidelines/Consulting
g/Guidelines-CConsultants.pdf.
17
Since th
he project is fin
nanced with ADDB-administere
ed cofinancing
g resources ass well as ADF resources, universal
procurem
ment will apply y. ADB. 2013. Blanket Waiv ver of Memberr Country Pro ocurement Eliggibility Restrictiions in
Cases of Cofinancing for
f Operations Financed from
m Asian Develop pment Fund Re esources. Mannila.
18
Checklis
sts for actions s required to
o contract consultants by method availlable in e-Ha andbook on P Project
Implemeentation at: http
p://www.adb.org handbooks/proj ect-implement ation/.
g/documents/h29
under the
e consulting services coontracts shall be approprriately hande
ed over to M
MRD accordiing to
the provisions for transfer under the contractts.
C. Procuremen
P t Plan
Basic Data
Project Name: RURA AL ROADS IM MPROVEMEN
NT PROJECT T II
Project Number: 423 334 Approva al Number: LXXXXX-CAM/G GXXX-CAM
Countryy: Cambodia Executinng Agency: M Ministry of Rural Developm
ment
Project Financing Amount: $118.23 Impleme enting Agenc cy:
ADB Finnancing: $5
54.00
Non-ADB Financing: $5
53.07
Date of First Procure
ement Plan ment Plan: 2
Date of tthis Procurem 22 May 2014
1. Metho
ods, Thresh
holds, Revie
ew and 18-M
Month Proc
curement Plan
a. Procurem
ment and Co
onsulting M ethods and
d Threshold
ds
31. Except
E as th
he Asian De evelopment Bank (ADB B) may othherwise agre
ee, the follo
owing
process thresholds
t shall
s apply to ent of goods and works.
o procureme
PROC CUREMENT OF GOODS AND WORKS
S
Method
M Threshold d Commen nts
ICB for Works
W Between $1,000,000 anda above All bidding d
documents an
nd contracts
ICB for Goods
G Between $500,000 an nd All bidding d
documents an
nd contracts
$1,000,000
NCB for Works Beneath that stated fo
or ICB, First set of b
bidding documments in the
Works English lang guage shall be
e prior review
wed
NCB for Goods Beneath that stated fo
or ICB, First set of b
bidding documments in the
Goods English lang guage shall be
e prior review
wed
Shopping for Works Below $1
100,000
Shopping for Goods Below $1
100,000 3 quotationss required
ICB = inte
ernational competitive bidding
g; NCB = nation
nal competitive
e bidding.
CONSUL LTING SERVIICES
Method Comments
Quality
y and Cost Ba
ased Selectio
on Prior review
Quality
y Based Selection Prior review
b. Good and
d Works Contracts Est imated to C
Cost $1 milliion or More
e
32. The
T following g table lists goods
g and works
w contra
acts for whicch the procurement activvity is
pected to commence witthin the nextt 18 months..
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