Project Readiness Financing Project Administration Manual India: Sikkim Major District Roads Upgradation Project - Asian ...
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Project Readiness Financing
Project Administration Manual
Project Number: 52159-003
Loan Number: {PRFXXXX}
May 2021
India:
Sikkim Major District Roads Upgradation ProjectCONTENTS
I. IMPLEMENTATION PLAN 1
A. Overall Implementation Plan 1
II. PROJECT MANAGEMENT ARRANGEMENTS 2
A. Project Implementation Organizations: Roles and Responsibilities 2
B. Key Persons Involved in Implementation 3
III. COSTS AND FINANCING 5
A. Key Assumptions 5
B. Allocation and Withdrawal of Loan Proceeds 5
C. Detailed Cost Estimates by Expenditure Category and Financier 6
D. Detailed Cost Estimates by Year 7
E. Contract and Disbursement S-Curve 8
IV. FINANCIAL MANAGEMENT 8
A. Financial Management Assessment 8
B. Disbursement 10
C. Accounting 11
D. Auditing and Public Disclosure 12
V. PROCUREMENT AND CONSULTING SERVICES 12
A. Advance Contracting and Retroactive Financing 13
B. Procurement of Consulting Services 13
C. Procurement of Goods and Civil Works 13
D. Procurement Plan 13
E. Consultant's Terms of Reference 13
VI. SAFEGUARDS 14
VII. PERFORMANCE MONITORING 14
A. Monitoring 14
B. Reporting 14
VIII. ANTICORRUPTION POLICY 15
IX. ACCOUNTABILITY MECHANISM 15
X. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 15
APPENDIXES
1. Indicative list of Subprojects 16
2. Detailed Terms of Reference 17Project Administration Manual for Project Readiness Financing Facility: Purpose and Process The project administration manual (PAM) for the project readiness financing (PRF) facility is an abridged version of the regular PAM of the Asian Development Bank (ADB) and describes the essential administrative and management requirements to implement the PRF facility following the policies and procedures of the government and ADB. The PAM should include references to all available templates and instructions either by linking to relevant URLs or directly incorporating them in the PAM. The executing agency–Government of Sikkim acting through Roads and Bridges (R&B) Department, and the implementing agency–Project Management Unit (PMU), (ADB Cell) under R&B Department, Government of Sikkim are wholly responsible for the implementation of ADB-financed PRF project, as agreed between the borrower and ADB, and following the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation, including compliance by R&B Department and PMU of Government of Sikkim, of their obligations and responsibilities for PRF project implementation following ADB’s policies and procedures. In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the PRF loan agreement will prevail. After ADB’s approval of the PRF proposal, 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 this PAM.
ABBREVIATIONS ADB – Asian Development Bank AFS – audited financial statement CAG – Comptroller and Auditor General DEA – Department of Economic Affairs DPR – detailed project report DPRC – detailed project report consultant EIA – environmental impact assessment EIRR – economic internal rate of return EMP – environmental management plan FMA – financial management assessment IEE – initial environmental examination IPP – indigenous peoples plan Km/km – Kilometer MDB – multilateral development bank MDONER – Ministry of Development of North Eastern Region NEC – North Eastern Council PAM – project administration manual PCR – project completion report PMU – project management unit PPMS – project performance monitoring system PRF – project readiness financing PWD – Public Works Department QCBS – quality- and cost-based selection R&B – roads and bridges SBD – standard bidding document TOR – terms of reference
I. IMPLEMENTATION PLAN
A. Overall Implementation Plan
1. Table 1 presents the overall implementation plan for the Project Readiness Financing (PRF) assistance and records key
implementation, including project management activities (on quarterly basis), which will be updated annually and submitted to
the Asian Development Bank (ADB) with updated contract and disbursement projections for the following year.
Table 1: Implementation Plan over PRF Assistance Tenure
2021 2022 2023 2024
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Year/ Activities
PRF Approval (Advance Action)
A. Implementation
Consultant selection
Feasibility studies & DPRs
Capacity building
B. Management Activities
ADB approval
PRF signing
PRF effectiveness
Submission of QPRs
Submission of annual report
Submission of APFS
ADB = Asian Development Bank, APFS = audited project financial statement, PPMS = project performance monitoring system, PRF = project readiness
financing, Q = quarter; DPRs: Detailed Project Reports; QPRs= Quarterly Progress Reports
Source: Asian Development Bank.2
II. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations: Roles and Responsibilities
Table 2: Roles and Responsibilities of Key Stakeholders
Implementation Organizations Management Roles and Responsibilities
A. Executing agency
Government of Sikkim acting • Appoint a Project Director dedicated for the PRF assistance and
through its Roads and establish a Project Management Unit at the R&B Department, which is
Bridges (R&B) Department adequately staffed with suitable resources (including qualified accounting
personnel) and acceptable to ADB.
• Ensure good coordination with Department of Economic Affairs (DEA),
Ministry of Finance, Government of India and for adequate allocation of
annual budget to the project, as per recommendation of PMU.
• Be the focal point at execution level for communication with all
stakeholders, including ADB, facilitation coordination for all stakeholder
consultations, and be the signatory to all key documents including
withdrawal applications and audit reports for submission to the
Government of Sikkim and the Government of India on PRF assistance;
• Liaise with ADB to address any issues during detailed engineering
design/procurement/institutional development works of consulting firm
under PRF assistance.
• Conduct review and approve detailed engineering designs/any other
design works and resource/effort/cost estimates, including DPRs.
B. Implementing agency
Project Management Unit • Prepare through consulting firm and recommend to R&B Department for
(ADB Cell) under R&B approval of detailed engineering designs/any other design works, DPRs,
Department , Government of procurement process documentation, and institutional strengthening and
Sikkim capacity building requirements and programs on training/workshops/
seminars/ conferences etc., including necessary coordination with all
stakeholders;
• Process bills for services contract. Conduct periodic review of the work
progress under PRF assistance and submit agreed progress/project
reports to the steering committee, Government of Sikkim, Government of
India, and ADB.
• Disclosure of information related to the project to the public through
government website(s). Facilitate in ensuring compliance with conditions
of PRF loan agreement under PRF assistance, Government of India,
Government of Sikkim, and ADB guidelines, procedures, and policies.
• Ensure compliance with ADB Safeguard Policy Statement, the
environmental assessment, resettlement, indigenous peoples
frameworks, etc. for the work under PRF assistance and the
corresponding reports/plans such as EMPs, IEEs/EIAs, resettlement
plans, IPPs, etc., as required, for each of the subprojects;
C. Asian Development Bank • Provide guidance to state agencies–R&B Department, PMU (R&B), etc.
on PRF assistance-related design and implementation issues;
• Facilitate R&B Department/PMU on procurement processing for
consulting firm/consultants’ selection under PRF assistance;
Conduct periodic review of the PRF assistance; and Disclosure of
information related to the PRF assistance, as per ADB’s Access to
Information Policy.
ADB = Asian Development Bank, DEA = Department of Economic Affairs, DPR = detailed project report, EIA = environmental impact
assessment, EMP = environmental management and monitoring plan, IEE = initial environmental examination, IPP = indigenous
peoples plan, MDONER = Ministry of Development of North Eastern Region, NEC = North Eastern Council, PCR = project completion
report, PRF = project readiness financing, PMU = project management unit, R&B = roads and bridges
Source: Asian Development Bank.3
B. Key Persons Involved in Implementation
2. The key persons involved in the implementation of PRF assistance are as follows:
Executing Agency
Government of Sikkim acting Officer’s Name: T.P. Shangderpa,
through its Roads and Bridges Position: Principal Chief Engineer-cum-Secretary
(R&B) Department Telephone No.: +91- 03592-203460
E-mail address: roadsandbridgessikkim1@gmail.com
Office Address: Roads & Bridges Department,
Government of Sikkim, Nirman Bhavan, Zero Point,
National Highway 10, Gangtok, Sikkim.
Executing Agency Officer’s Name: Shanti Tamang,
Position: Project Director
Telephone No.: +91- 03592-203460
E-mail address: pdadbsikkim@gmail.com
Office Address: Roads & Bridges Department,
Government of Sikkim, Nirman Bhavan, Zero Point,
National Highway 10, Gangtok, Sikkim
Asian Development Bank
Indian Resident Mission Staff Name: Takeo Konishi
Position: Country Director
Telephone No.: +91-11-2410-7200
E-mail address: tkonishi@adb.org
Mission Leader Staff Name: Prabhasha Sahu
Position: Senior Project Officer
Telephone No: 91-11-2410-7200
E-mail address: psahu@adb.org4
C. Project Organization Structure
Figure 1: Project Organization Structure
Government of Sikkim
ADB (Project Steering Committee) DEA
Roads and Bridges Department (R&B)
(Executing Agency)
Project Management Unit
ADB Cell under R&B
(Implementing Agency)
Detailed Project Report
Consultant
ADB = Asian Development Bank, DEA = Department of Economic Affairs, DPRC = detailed project report consultant.5
III. COSTS AND FINANCING
A. Key Assumptions
3. The following key assumptions underpin the cost estimates and financing plan:
(i) Exchange rate: INR 73.1415 = $1.00 (as of 26 February 2021).
(ii) Contingencies (including price contingencies) calculated at 12% of base cost has
been considered.
B. Allocation and Withdrawal of Loan Proceeds
4. The PRF will finance consulting services only, including allocations workshops and
training, studies, field surveys and other reimbursable expenses. Local indirect taxes and duties
will be financed from the government resources.
Table 3: Allocation and Withdrawal of PRF Loan Proceeds
Number Category Total Amount Allocated for Basis for Withdrawal from the
ADB Financing ($) Loan Account
1. Consulting Services 2,500,000 81.1% of total expenditure
Total 2,500,000
PRF = project readiness financing.
Source: Asian Development Bank.6
C. Detailed Cost Estimates by Expenditure Category and Financier
Table 4: Detailed Cost Estimates by Expenditure Category
($ million)1
ADB OCR GOS Total Cost2
Item % of % of Taxes and
Amount Amount Amount
Category Category Duties
A. Investment Costs
1 Feasibility studies and Detailed engineering 1.90 81.1% 0.44 18.9% 2.34 0.36
designs
2 Institutional capacity building 0.33 81.1% 0.08 18.9% 0.41 0.06
Subtotal (A) 2.23 81.1% 0.52 18.9% 2.75 0.42
B. Contingencies3 0.27 81.1% 0.06 18.9% 0.33
C. Financing Charges4 - 0% 0.05 100.0% 0.05
Total Project Cost (A+B+C) 2.50 80.0% 0.63 20.0% 3.13 0.42
% Total Project Cost 80% 20% 100%
ADB= Asian Development Bank, GoS= Government of Sikkim, OCR= ordinary capital resources
Notes:
1. Numbers may not sum precisely because of rounding.
2. Includes taxes and duties of $0.42 million to be financed from government resources by cash contribution.
3. Contingencies (including price contingencies) computed at 12% for consulting services.
4. Includes Interest during implementation for the ordinary capital resources (OCR) loan, computed at the 3-year United States dollar fixed swap rate plus a spread
of 0.5%. Commitment charges for the OCR loan has not been considered on the undisbursed loan amount.
Source: Asian Development Bank.7
D. Detailed Cost Estimates by Year
Table 5: Detailed Cost Estimates by Year
($ million)1
Item Total 2021 2022 2023 2024
A. Investment Costs2
Feasibility studies and Detailed
1 2.34 0.66 1.01 0.42 0.25
engineering designs
2 Institutional capacity building 0.41 - 0.08 0.25 0.08
Total Base Cost 2.75 0.66 1.10 0.66 0.33
B. Contingencies3 0.33 0.08 0.13 0.08 0.04
C. Financing Charges4 0.05 0.00 0.01 0.02 0.02
Total Project Cost (A+B+C) 3.13 0.74 1.24 0.76 0.39
Notes:
1. Numbers may not sum precisely because of rounding.
2. Includes taxes and duties of $0.42 million to be financed from government resources by cash contribution.
3. Contingencies (including price contingencies) computed at 12% for consulting services.
4. Includes Interest during implementation for the ordinary capital resources (OCR) loan, computed at the 3-year United States dollar fixed swap rate plus a spread
of 0.5%. Commitment charges for the OCR loan has not been considered on the undisbursed loan amount.
Source: Asian Development Bank.8
E. Contract and Disbursement S-Curve
Table 6: Contract Awards and Disbursement
Year Contract Awards (in $ million) Disbursements (in $ million)
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
2021 2.50 - - - 2.50 - 0.20 0.20 0.20 0.60
2022 - - - - - 0.25 0.25 0.25 0.25 1.00
2023 - - - - - 0.15 0.15 0.15 0.15 0.60
2024 - - - - - 0.30 - - - 0.30
Total Contract Awards 2.50 Total Disbursements 2.50
Q= quarter.
Source: Asian Development Bank.
Figure 2: S-Curve
Q= quarter.
IV. FINANCIAL MANAGEMENT
A. Financial Management Assessment
5. The Financial Management Assessment (FMA) was conducted in June 2020 – July 2020,
in accordance with ADB’s Guidelines for Financial Analysis and Evaluation, Financial
Management Assessment, and related technical guidance notes1.
6. The Executing / Implementing Agency has prior experience of executing ongoing ADB-
funded project, however there is scope for improvement in the areas of disbursements, financial-
recording keeping, reporting, and auditing requirements. Deficiencies in the areas of audit as
observed for the ongoing ADB funded project requires attention. Apart from subordinate level
accountants, a financial management specialist with adequate experience shall be engaged to
1 ADB. 2019. Financial Analysis and Evaluation. Manila; and ADB. 2015. Financial Management Assessment. Manila9
address the accounting issues identified. Adequate training to familiarize the executing and
implementing agency on ADB’s financial management matters will be imparted by ADB. Suitable
accounting policies on audited project financial statements (APFS) will be drafted by PMU and
approved by ADB. Considering the risk factors identified, subject to mitigation arrangements
during implementation period, overall FM risk is assessed as moderate.
7. R&B Department has agreed to implement an action plan as key measures to address the
deficiencies. The financial management action plan is provided in the following Table:
Key Risks Risk Mitigating Activity Timeline Responsible
Entity
Staff in finance and Adequate staff training and No later than R&B
accounting section are handholding through capacity 2 years from Department
not trained for ADB building on financial management the and ADB
Projects. will be done (output 2 of PRF). effectiveness
of the PRF
project.
Timely preparation of An experienced FM specialist shall Continuous R&B
project financial be engaged mainly for estimation of Department
statements including budgets, provide support to
inappropriate accounts staff on preparation of ADB
accounting policies disbursement claims, overall
and issue of project financial management and
audit report. preparation of project financial
statements. Consultation with ADB
FM staff on accounting policy shall
be made prior to finalization of first
submission of PFS.
Engagement of private auditor as
an alternative measure in case
delays from government auditors
are anticipated.
Delay in payment to Services of a single Consultant will Continuous R&B
the Consultant be used for the PRF and funds can Department
be transferred online from State and ADB
finance to the ADB project fund for
payments.
Necessary hand holding will be
done by the FM specialist.
Budget is not recorded Budget is recorded in the PFMS No later than R&B
and therefore (central level system for budget), 2 years from Department.
comparison with and such data should be used for the
actuals is not done. comparison. Engagement of effectiveness ADB to
experienced FM specialist to hand- of the PRF monitor
hold will be necessary. project.
Lack of documented FM specialist engaged for the No later than R&B
policies and project to develop an 2 years from Department
procedures to the implementable standard operating the
extent relevant for procedure (SOP) on accounting effectiveness
ADB projects. functions relevant for ADB10
compliances and for overall of the PRF
safeguard against fraud, abuse and project.
waste.
Manual records are Feasibility of basic automation for No later than R&B
maintained leading to maintaining books of accounts 2 years from Department
risk of errors should be explored. the
omissions etc. effectiveness
of the PRF
project.
B. Disbursement
8. R&B Department, Government of Sikkim will disburse the project readiness loan proceeds
following the Asian Development Bank (ADB) Loan Disbursement Handbook (2017, as amended
from time to time), and detailed arrangements agreed between the government and ADB. Online
training for project staff on disbursement policies and procedures is available.2 Project staff are
encouraged to avail online training facility and also to attend annual workshops by ADB on
disbursement procedures conducted every year to get familiarized with the disbursement
procedures.
9. Reimbursement method using full documentation procedures (by submitting complete
supporting-documents) shall be the primary method of disbursement. Additionally, it may also use
Statement of expenditure (SOE) procedure using a threshold limit of US$ 100,000 by submitting
SOEs without any supporting documents. All relevant supporting documents claimed under SOE
procedures should be maintained and made readily available for review by ADB’s disbursement
review missions, upon ADB’s request for submission of supporting documents on a sampling
basis, and for independent audit3. Advance procedures and direct payment procedures for
disbursements shall not be used in PRF
10. A PMU to monitor and manage the PRF assistance will be established at R&B
Department, Government of Sikkim and led by a project director who will be the authorized
signatory for withdrawal applications. The PMU will include an experience financial management
specialist who will be responsible for (i) collecting supporting documents; (ii) preparing the
withdrawal applications for signature by the Project Director; and (iii) uploading the draft
withdrawal applications on ADB’s Client Portal for Disbursements (CPD)4 system to CAAA for
finalization and approval.
11. Before submitting the first withdrawal application, the borrower should submit to ADB
sufficient evidence of the authority of the person who will sign the withdrawal applications on
behalf of the government, together with the authenticated specimen signatures of each authorized
person. The minimum value per withdrawal application is stipulated in ADB’s Loan Disbursement
Handbook. Individual payments below such amount should be paid (i) by the R&B Department of
Government of Sikkim and subsequently claimed from ADB through reimbursement, unless
otherwise accepted by ADB. PMU and borrower shall ensure that sufficient category and contract
balances are available before requesting disbursements. Use of ADB’s CPD system for
submission of withdrawal applications to ADB will be considered mandatory.
2 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning
3 Independent auditors are required issue opinion under annexure 7 template of terms of reference (TOR) agreed
between ADB, Department of Economic Affairs (DEA) and Comptroller and Auditor General of India.
4 ADB’s Client Portal for Disbursements system facilitates online submission of withdrawal applications to ADB,
resulting in faster disbursement. The forms to be completed by the borrower are available at ADB. Guide to the Client
Portal for Disbursements.11 12. No further disbursements will be made from the PRF account upon refinancing under an ensuing or ongoing loan. The PRF loan amount is paid out under the PRF cost category of the ensuing or ongoing loan that will refinance the PRF loan. Provided the following costs are eligible expenditures, the ensuing or ongoing loan will finance (i) costs incurred under PRF that have not yet been paid from the PRF account by the refinancing date; (ii) costs for activities initiated under PRF and continuing beyond the refinancing date; and (iii) costs incurred during PRF implementation but ineligible under PRF. C. Accounting and Auditing 13. R&B department, Government of Sikkim will maintain separate PRF project accounts and records by funding source for all expenditures incurred on the PRF project. A project financial statement (PFS) will be prepared at the PMU following cash basis of accounting as per accepted accounting principles and standards followed by the Government of India and the state government. ADB expects audited project financial statements prepared in accordance with International Public Sector Accounting Standard (IPSAS) or accounting standards prescribed by nationally constituted professional accounting organization (PAO).5 14. Given the FM capacity at IA, PFS can be prepared using template of cash based project financial statements provided in the standardized terms of reference (TOR) of audit of ADB- assisted projects, agreed with the Comptroller and Auditor General of India, the Department of Economic Affairs and ADB. The audit report including scope of audit shall be as per TOR document by following Annexure 13 of TOR guidance template. Accordingly, the expected disclosures in the project financial statements will include at least the following: (i) Statement of cash receipts (by financing source) and payments (by expenditure category) for the current reporting period, past reporting period, and cumulative to date; (ii) Statement of expenditure by category and financier for the year/period end; (iii) statement of disbursement, disclosing all funds claimed from ADB by disbursement method, total expenditure claimed for the current reporting period, past reporting period, and cumulative to date. The notes of the financial statements should include a detailed list of all withdrawal applications submitted to ADB, and the amounts paid by ADB as follows: (a) withdrawal application number, (b) the amount claimed and currency, (c) date submitted, and (d) disbursement method and the amount disbursed by ADB; The statement should be supported by relevant withdrawal accounts used for claiming disbursements from ADB. (iv) Notes on the PFS financial statements and significant accounting policies followed at the project including other relevant explanatory notes and explanations as appropriate. (v) Statement of disbursements claimed using Statement of Expenditure (SOE) procedures during reporting period by giving reference to withdrawal application numbers; (vi) A statement of appropriation vs. actual expenditures. Any significant variances must be duly explained; (vii) Expenditure by output/components for the current reporting period, past reporting period, and cumulative to date; 5 Institute of Chartered Accountants of India (ICAI) is the relevant PAO for India
12
15. Auditor for the PFS shall be any independent auditor which can be either from audit-office
of Accountant General (A&E), Sikkim or any private independent chartered accountant having
certificate of practice and registered with ICAI. By default the auditor from state office from (A&E)
is the auditor. Scope of audit shall be strictly in accordance with TOR document. Audit report
issued shall be as per audit-report template provided in annexure-13 of the TOR as a guidance.
To facilitate timely-audit, PMU shall ensure draft PFS be ready within 3 months of close of fiscal
year during project-implementation. In case delays to commence audits by the government
auditor is anticipated, PMU may engage a reputable private independent chartered accountant to
perform the project audit within 1 month after close of 3 months of fiscal year. The auditor’s opinion
in report shall be in English with project financial statements (APFS) shall be submitted to ADB
within 6 months of close of fiscal year.
16. GOS shall enable ADB upon ADB’s request, to discuss the financial-statements for the
project, where they relate to the project with their auditors appointed by the state or PMU, and
shall authorize and require any representative of such auditors to participate in any such
discussions requested by ADB. This is provided that such discussions shall be conducted on in
presence of an authorized officer of the state having sufficient understanding on audit and
accounting related matters, unless the state shall otherwise agree.
17. ADB has made the R&B Department, GOS aware on ADB’s approach to delayed
submission of APFS and the requirements for satisfactory and acceptable quality of the audited
project financial statements.6 ADB reserves the right to require an addition in the auditor, if the
audits required are not conducted in a manner satisfactory to ADB or if the audits are substantially
delayed. ADB reserves the right to verify the financial accounts to confirm that its policies and
procedures were followed when the share of ADB’s financing was used.
D. Public Disclosure
18. ADB’s Access to Information Policy 2018 will guide the public disclosure of the audited
project financial statements. ADB shall disclose the annual project audit report and related PFS
(without management letter) within 14 days of the date of ADB’s confirmation of their acceptability
by posting them on ADB website.
V. PROCUREMENT AND CONSULTING SERVICES
19. R&B department (the executing agency) has been executing road improvement works in
Sikkim as a part of ADB-funded North Eastern State Roads Investment Program.7 R&B
6 ADB’s approach and procedures regarding delayed submission of audited project financial statements:
(i) When ADB does not receive the audited project financial statements by the due date, ADB will write to the
executing agency to inform it that (a) the audit documents are overdue; and (b) if they are not received within
the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance
accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.
(ii) When ADB does not receive the audited project financial statements within 6 months after the due date, ADB
will withhold processing of requests for new contract awards and disbursement such as new replenishment of
advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will
inform the executing agency (a) of ADB’s actions and (b) that the loan may be suspended if the audit
documents are not received within the next 6 months.
(iii) When ADB does not receive the audited project financial statements within 12 months after the due date, ADB
may suspend the loan.
7 ADB. 2011. Report and Recommendation of the President to the Board of Directors on Proposed Multitranche
Financing Facility to India for North Eastern State Roads Investment Program. Manila (Loan 2770-IND, $74.8 million,
approved on 22 August 2011).13 department undertook the recruitment of consultants and contractor in accordance with ADB Guidelines. Upon approval of advance contracting under the proposed PRF by ADB, R&B department has successfully completed recruitment of consulting firm following ADB’s Procurement Regulations, which demonstrate adequate capacity of the executing agency to recruit consulting services. The consultants recruited under PRF will further support R&B department and enhance their procurement capacity. A. Advance Contracting and Retroactive Financing 20. Advance contracting. All advance contracting will follow ADB Procurement Policy: Goods, Works, Non- consulting and Consulting Services (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers: Goods, Works, Non- consulting and Consulting Services (2017, as amended from time to time). The issuance of consulting services recruitment notice under advance contracting will be subject to ADB approval. ADB has advised the borrower, R&B department and PMU of Government of Sikkim that approval of advance contracting does not commit ADB to finance the PRF assistance. 21. Retroactive financing. Withdrawals from the loan account may be made to finance eligible expenditures incurred under the PRF before the effective date, but not earlier than 12 months before the date of the loan agreement for this PRF, in connection with items to be retroactively financed, subject to a maximum amount equivalent to 20% of the loan amount B. Procurement of Consulting Services 22. Government of Sikkim has selected a consulting firm as detailed project report consultants (DPRC) following the ADB Procurement Policy and its associated project administration instructions and/or staff instructions. The DPRC consulting firm has been procured on quality- and cost-based selection (QCBS) method with quality-cost ratio of 80:20, to ensure high quality of technical outputs under PRF assistance. DPRC will assist R&B department, Government of Sikkim in feasibility studies and preparation of detailed project report for roads and bridges in Sikkim. The duration of assignment for the DPRC consulting firm would be 36 months with 202 person-months inputs of key experts. DPRC is expected to be mobilized from December 2020 (will be further confirmed during contract negotiation process). C. Procurement of Goods and Civil Works 23. Procurement of goods and civil works for pilot-testing is not envisaged under the proposed PRF. D. Procurement Plan 24. One consulting firm is envisaged under the PRF and has been selected upon approval of advance contracting by ADB. E. Consultant's Terms of Reference 25. The detailed TOR for expected outputs of the consulting services package (DPRC consulting firm) recruited by the PRF executing agency– R&B department, Government of Sikkim has been agreed with ADB (Appendix 2). The consulting services would cover: (i) initial screening of the tentative list of candidate roads and bridges; (ii) feasibility studies of the shortlisted roads for final selection; (iii) detailed design for selected road and bridge subprojects, including the environmental and social safeguard assessments and preparation of environmental and social safeguard planning documents, preparation of realistic cost estimate benchmarking with contracts
14
of similar nature and conditions, economic analysis, due diligence and capacity building on
financial management, assistance and capacity building on procurement including streamlining
the decision making processes, preparation of bid documents and supporting the bidding process
until contract award; and (iv) providing assistance in sector analysis and developing the road
maintenance, road safety, and institutional strengthening, capacity development component and
preparation of gender analysis and gender equality and social inclusion plan for incorporation of
gender elements in the design of the ensuing project.
VI. SAFEGUARDS
26. Sikkim has a mountainous terrain and forest zones, and it is likely that some sections of
the selected roads may pass through forest areas. However, the project will avoid subprojects in,
or close to, national parks, wildlife sanctuaries, or any other environmentally sensitive areas. The
environmental impacts under the selected subprojects may not be major and are expected to be
minimized to an acceptable level through mitigation measures. The environment safeguard
category is taken as B.
27. The social safeguard categorization is taken as B, as the population of Sikkim is small and
road sections passing through hilly terrain are less likely to pass through populated areas
requiring significant resettlement and land acquisition. If the subproject would have any impact on
the indigenous peoples, those are expected to be limited. Improvement of the roads is expected
to have positive impacts on social and economic life for the population in the subproject influence
zone including the indigenous peoples. The indigenous peoples category is taken to be B.
28. Prohibited investment activities. Pursuant to ADB’s Safeguard Policy Statement
(2009), ADB funds may not be applied to the activities described on the ADB Prohibited
Investment Activities List set forth in Appendix 5 of the Safeguard Policy Statement.
VII. PERFORMANCE MONITORING
A. Monitoring
29. Project readiness financing project performance monitoring. Roads and Bridges
(R&B) Department, Government of Sikkim (the EA) will monitor PRF assistance performance
semiannually and provide consolidated reports to ADB. These reports will include (i) each
activity’s progress measured against the implementation schedule; (ii) key implementation issues
and solutions; (iii) an updated implementation plan. To ensure PRF assistance continue to be
both viable and sustainable, the EA should adequately review project financial statements of PRF
assistance and the associated auditor's report. In the event that an ensuring loan is not approved,
the EA will submit a project completion report to represent the performance of completed PRF, to
ADB within 6 months of physical completion of PRF project.
30. Compliance monitoring. The EA will monitor compliance of loan covenants, including
that relating to policy, legal, financial, economic, environmental, and others and ensure
compliance with loan covenants and assurances. All non-compliance issues, if any, will be
updated in quarterly progress reports together with remedial actions. ADB review missions will
also monitor the status of compliance with loan covenants and raise the noncompliance issues
with the EAs and agree on remedial action.
B. Reporting
31. The EA will provide ADB with:15
(i) quarterly progress reports on the PRF assistance in a format consistent with ADB's
project performance reporting system;
(ii) reports prepared by the consultants under the PRF assistance;
(iii) consolidated annual reports, including (a) progress achieved by output measured
against the performance targets, (b) key implementation issues and solutions, and
(c) an updated implementation plan for the next 12 months; and
(iv) project accounts of PRF assistance, audited financial statements (AFSs), and the
associated auditor’s report.
VIII. ANTICORRUPTION POLICY
32. The Government of India, the State Government of Sikkim and other implementing
agencies are advised of ADB’s Anticorruption Policy (1998, as amended to date). Consistent with
its commitment to good governance, accountability, and transparency, implementation of the
project shall adhere to ADB’s Anticorruption Policy. ADB reserves the right to investigate, directly
or through its agents, any violations of the Anticorruption Policy relating to the PRF project
following ADB’s Integrity Principles and Guidelines. All contracts financed by ADB will include
provisions specifying ADB’s right to audit and examine the records and accounts of the executing
agency and all PRF project contractors, suppliers, consultants, and other service providers. This
includes the examination of project outputs, assets, and all other information that may be
considered relevant for audit or inspection by ADB regardless of project completion, termination,
or cancellation. Firms or individuals on ADB’s anticorruption debarment list are ineligible to
participate in activities that are financed, supported, or administered by ADB; and may not be
awarded any contracts under the PRF project.8 Investigation of Government officials, if any, will
be requested by ADB to be undertaken by the Borrower.
33. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included
in the project readiness loan agreement and any bidding documents under the PRF assistance.
IX. ACCOUNTABILITY MECHANISM
34. People who are, or may in the future be, adversely affected by the PRF assistance may
submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides
an independent forum and process whereby people adversely affected by ADB-assisted PRF
assistance can voice and seek a resolution for their problems, as well as report alleged violations
of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability
Mechanism, affected people should make an effort in good faith to solve their problems by working
with the concerned ADB operations department. Only after doing that, and if they are still
dissatisfied, should they approach the Accountability Mechanism.9
X. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL
35. All revisions and/or updates during implementation of project readiness loan should be
retained in this section to provide a chronological history of changes to implemented
arrangements recorded in the PAM, including a revision to contract awards and disbursement S-
curves.
8 ADB. Anticorruption and Integrity.
9 ADB. Accountability Mechanism.16
Appendix 1
Indicative List of Subprojects
S. No. Name of the Road Length (km)
1 Damthang - Ravangla 12.35
2 Rangpo - Duga - Pendam 14.64
3 Ravangla - Yangang 13.97
4 Duga - Pacheykhani 11.04
5 Rongli Road (Kingstone) - Rongli 9.17
6 Machong - Rangpo Khola - Rolep 14
7 Sombarey - Hilley 25.13
8 Legship (Gangtok more) - Tashiding Gumpa Phatak 14.21
9 Melli - Phong via Ratepani 22.9
10 Ravangla - Ralang 13
11 YangYang - Kimbubotey 16.62
12 Namboo - Chingtapu (Nepal Border) 20
13 Sopakha - Chewabhanjyang (Nepal Border) 18
14 Sang – Sirwani 9.93
15 Darap – Namboo 7.24
16 Namlung - Zorong - Tashiding Road 15
17 Chongrang Kongri Labdang 19
18 Sang Khola Zingla 8
19 Sang Dipu Dara 15
20 Khamgdong Lingey Tinket (KLT) 22
Bridges
S. No. BRIDGES SPAN
1 Steel bridge over Limu Khola along Darap Namboo road 35 m
2 Bridge over Kali Khola- Ranka- Sichey road Km 7th 35 m
3 Seti Khola Ranka- Sichey road Km 6th 20 m
4 Sim Khola Ranka- Sichey road km 3rd 15 m
5 Ghattey Khola Namchi- Rong- Sumbuk road Km 4th 20 m
6 Singh Khola Phongla- Bermiok road Km 9th Ch 23rd 20 m
7 Siring Khola Phongla- Bermiok road Km 12th Ch 30th 20 m
8 Budhang Khola Ralang- Phamtham road Km 14th 20 m
9 Bhaley Khola Sirsiray- Kalung Dara 40 m
10 Kali Khola Passi- Ketang : 65 m
11 Sangpu Khola 40 m
12 Ringtam Khola Ringhim Nampatam road 20 m
Note: The list will be reviewed in consultation with the executing agency and may undergo some changes.17
Appendix 2
DETAILED TERMS OF REFERENCE (TOR)
FOR CONSULTING SERVICES FOR
FEASIBILITY STUDIES AND PREPARATION OF DETAILED PROJECT REPORT FOR
ROADS AND BRIDGES IN SIKKIM
A. General
1. The proposal for up-gradation of major and other district roads and construction of bridges
in Sikkim is being considered through Asian Development Bank (ADB) funding. The scope of the
project includes up-gradation of major district roads, other district roads and replacement of weak
bridges thus creating a sound network of roads in the State with adequate linkage to the national
highway and state highway network and connectivity to important towns, commercially important
rural areas, pilgrimage and other tourist destinations in the State. The selection of roads and
bridges to be taken up under the project and further project preparation including feasibility studies
and preparation of detailed project report is yet to be taken up. Apart from the investment
component, the proposed project will assist in strengthening institutional arrangements for road
maintenance and strengthening institutional capacity of Road and Bridges (R&B) Department,
Government of Sikkim.
2. R&B Department, Government of Sikkim will be the employer and executing agency for
the consultancy services. R&B Department has prepared a tentative list of candidate roads and
bridges for initial screening and undertaking further studies for the final selection and the
preparation of detailed project report for the selected roads and bridges. R&B Department now
invites proposal for Consulting Services for undertaking Feasibility study and Preparation of
Detailed Project Report for roads and bridges in Sikkim. The cost of the Consulting Services is
proposed to be funded through ADB loan and is subject to approval of the loan by ADB. The
selected roads and bridges for which the detailed project report and detailed design have been
undertaken may be funded under one or more loans by ADB or through other funding
mechanisms.
Objectives and Scope
Objective
3. The main objective of the consultancy services is to (i) establish technical, social,
environmental and economic viability of the road and bridge projects and prepare detailed project
reports for upgradation of major and other district roads and construction of bridges for the viable
and selected projects after undertaking initial screening of the tentative list of candidate roads and
bridges; and (ii) develop an institutional development and capacity building component for R&B
department and strengthening institutional arrangements for road maintenance under the
proposed project; and (iii) capacity building of R&B Department.
Scope of Services
4. The Consultant reporting to the R&B Department will work under the overall guidance,
technical control, and direction of the designated Project Director. The Consultants will undertake:
(a) initial screening of the tentative list of candidate roads and bridges (about 400km
including bridges on the candidate roads, if any and about 12 other bridges
(cumulative span of 300meters); [As shown in Annexure-I]18
(b) feasibility studies of the shortlisted roads (about 220-250km bridges on the
candidate roads, if any, and about 8 to 10 other bridges (cumulative span of 220-
250 metres) for final selection;
(c) detailed design for selected road (about 150Km including bridges on the candidate
roads, if any) and about 8 other bridges (cumulative span of 250m);
(d) the above work includes the environmental and social safeguard assessments and
preparation of environmental and social safeguard planning documents,
preparation of realistic cost estimate benchmarking with contracts of similar nature
and conditions, economic analysis, due diligence and capacity building on financial
management, assistance and capacity building on procurement including
streamlining the decision making processes and the use of e-procurement or
phased adoption of e-procurement system, preparation of bid documents and
supporting the bidding process until contract award; and
(e) providing assistance in sector analysis and developing the road maintenance, road
safety, and institutional strengthening and capacity development component of the
project. The subproject will be carefully selected and designed keeping into
consideration the existing local hazard maps or actual surveys. Disaster risk and
climate change will be taken into consideration in the design of resilient/all-weather
roads. The detailed scope of services is given in the sections that follow. However,
the entire scope of services would, inter-alia, include the items mentioned in the
Letter of Invitation and the TOR. The standards of output required from the
appointed consultants are of international level both in terms of quality and
adherence to the agreed time schedule.
Engineering Studies and Detailed Design
5. The engineering studies and detailed design is divided into three parts:
(i) initial screening of the tentative list of candidate roads and bridges;
(ii) feasibility studies of the shortlisted roads for final selection; and
(iii) detailed design for selected road and bridge subprojects.
6. The viability of the project shall be established taking into account the requirements with
regard to rehabilitation, upgrading and improvement based on highway design, pavement design,
bridge design, protection works and other improvement and safety measures, as necessary,
quantities of various items of works and cost estimates vis-à-vis the economic analysis within the
given time frame. The Detailed Project Report would inter-alia include detailed highway design,
design of pavement and overlay, drainage studies and design, design of protection works, design
of slope stabilization works, design of bridges and cross drainage structures, road safety audits,
quantities of various items, detailed working drawings, detailed cost estimates, economic and
financial viability analyses, environmental and social feasibility, social and environmental action
plans as appropriate and documents required for bidding for the project as per ADB Guidelines
and standard bidding documents. Disaster risk and climate change will be taken into consideration
in the design of resilient/all-weather roads and bridges. The Consultants shall ensure detailed
project preparation incorporating aspects of value engineering, quality audit and safety audit
requirement in design and implementation.
7. Sikkim is prone to a multitude of natural hazards such as earthquakes and earthquake
induced landslides; and climate- and weather-related hazards, such as precipitation induced
landslides, floods cloudbursts, flash floods. These are likely to increase with increasing frequency
of heavy precipitation due to climate change. The frequency and magnitude of drought events are
also likely to increase. The sensitivity of project components would largely depend on location,19
system design and specifications, materials, safety plans and procedures, maintenance regime,
and investments.
8. The Consultants will particularly take the following into account to design disaster and
climate change resilient all-weather roads and bridges:
i. Sites should be carefully selected with reference to existing local hazard maps or
actual surveys.
ii. Disaster risk and climate change will be taken into consideration in the design of
resilient/all-weather roads and bridges.
iii. The subproject will be designed and executed as seismic resistant structure in
accordance with relevant national standards, as applicable.
iv. The design and construction standards will be raised to appropriate level. The
revised high flood levels of the rivers or the natural streams or drainage channels
shall be considered, while designing facilities, as applicable. Geotechnical studies
shall be undertaken and slope stabilization measures considered for slide zones,
wherever applicable.
v. Detailed engineering design for roads and bridges will address slope instability
problems and shortages of good construction material.
vi. Climate mitigation and climate adaptation cost will be estimated.
vii. Chronic landslide zones will be identified and mapped and specialized
technological solutions for slope stabilization and protection will be provided.
Part-I Initial screening of the tentative list of candidate roads and bridges
9. The Consultant will undertake a review and screening of the tentative list of candidate
road and bridge subprojects prepared by R&B Department attached as Annexure 1. The review
and screening will be carried out through (i) review of all available reports and published
information about the tentative list of candidate road and bridge subprojects and the project
influence area including the Land Transport Management and Master Plan for Sikkim (Final
Report - May 2012) prepared under ADB Technical Assistance (TA 7538-IND);
(ii) reconnaissance survey in the field; and (iii) discussions with the officials of R&B Department.
The Consultant may devise a simplified selection criterion to facilitate the preparation of a short
list of candidate road and bridge subprojects in consultation with R&B Department. Subprojects
in or close to, national parks, wildlife sanctuaries, or any other environmentally sensitive areas
should be avoided. Subprojects passing through populated areas requiring significant
resettlement and land acquisition should also be avoided. Based on the review and initial
screening, the Consultant will finalize a shortlist of candidate road and bridge subprojects in
consultation with the R&B Department for taking up the feasibility study for the final selection of
the roads.
Part-II: Feasibility Study for Shortlisted candidate roads and bridge subprojects
10. The Consultant will undertake a feasibility study for the shortlisted candidate road and
bridge subprojects for the final selection of the roads.
The Scope of Services shall cover but be not limited to the following major tasks:
i. review of all available reports and published information about the project road and
the project influence area;
ii. detailed reconnaissance and preliminary topographic surveys;
iii. road inventory and condition surveys;20
iv. inventory of bridges, culverts and structures;
v. preliminary material and geotechnical investigation;
vi. identification of possible improvements in the existing alignment,
vii. preliminary traffic studies including traffic surveys and demand forecasting;
viii. preliminary environmental and social impact analyses;
ix. preliminary proposals and design for upgradation of roads and bridges;
x. strip plan indicating the scheme for carriageway widening, location of all existing
utility services (both over- and underground) and the scheme for their relocation,
trees to be felled and planted and land acquisition/resettlement requirements;
xi. project costing;
xii. economic analyses;
xiii. Reports, documents and drawings.
11. The detailed Scope of Services and the methodology for achieving the objective are
described in the pages that follow. The Consultants are to follow the relevant portions of this TOR
for the Part-II Feasibility Study corresponding to the Scope of Services.
Part-III Detailed design for selected road and bridge subprojects
12. The following sections describe the scope of services to be undertaken for the detailed
design of the subprojects. The detailed design will be undertaken for (i) 150 km of roads including
bridges, if any and, (ii) 08 (eight) bridges (on other roads) of cumulative span of about 220-250m.
13. Scope of Services shall cover but not be limited to the following major tasks:
(i) Review of all available reports and published information about the candidate
subprojects and the project influence area;
(ii) Environmental, poverty and social impacts, including those related to cultural
properties, indigenous people natural habitats, involuntary resettlement etc.;
(iii) Public consultation, including consultation with Communities located along the
road, NGOs working in the area, other stake-holders and relevant Government
departments at different stages of assignment;
(iv) Detailed reconnaissance;
(v) Identification of possible improvements in the existing alignment;
(vi) Traffic studies including traffic surveys and axle load survey and demand
forecasting;
(vii) Inventory and condition surveys for road, bridges, cross-drainage structures and
drainage provisions;
(viii) Detailed topographic surveys using Total Stations and GPS;
(ix) Pavement investigations ;
(x) Sub-grade characteristics and strength: investigation of required sub-grade and
sub-soil characteristics and strength for road and embankment design and sub soil
investigation;
(xi) Identification of sources of construction materials;
(xii) Road safety audit to identity areas of major concern, including black spots, and
measures to be taken for improving detailed engineering design with respect to
road safety;
(xiii) Preliminary proposal for rehabilitation / widening including shoulder composition
and cross-section details;
(xiv) Detailed design for rehabilitation / widening of road;
(xv) Detailed design for rehabilitation/widening/reconstruction of bridges, cross
drainage;21
(xvi) Identification of the type and the design of intersections;
(xvii) Design of complete drainage system and disposal point for storm water;
(xviii) Value analysis / value engineering and project costing;
(xix) Economic analyses;
(xx) Strip plan indicating the scheme for carriageway widening, location of all existing
utility services (both over- and underground) and the scheme for their relocation,
trees to be felled and planted;
(xxi) Preparation of project report, cost estimate, rate analysis, detailed bill of quantities;
(xxii) Bid documents for execution of civil works;
(xxiii) Preparation of resettlement plans for the project affected people as per ADB
guidelines and Govt. of India R & R Policy and assessment of the land acquisition
requirements;
(xxiv) Preparation of initial environmental examination and environmental management
plan.
14. While carrying out the field studies, investigations and design, the development plans
being implemented or proposed for future implementation by the local bodies, shall be taken into
account. Such aspect shall be clearly brought out in the reports and drawings.
15. The details of the tasks to be undertaken are described in following paragraphs.
Standards and Codes of Practices
16. All activities related to field studies, design and documentation shall be done as per the
latest guidelines/ circulars of Ministry of Road Transport and Highways (MORTH) and relevant
publications of the Indian Roads Congress (IRC) and Bureau of Indian Standards (BIS). For
aspects not covered by IRC and BIS, international standard practices, such as, British and
American Standards may be adopted. The Consultants upon award of the Contract may reflect
the same in the inception report.
Quality Assurance Plan (QAP)
17. The Consultants shall have detailed Quality Assurance Plan (QAP) for all field studies
including topographic surveys, traffic surveys, engineering surveys and investigations, design,
analyses and documentation activities. The draft detailed QAP Document must be discussed and
finalized with the officers concerned immediately upon the award of the Contract and submitted
as part of the inception report.
Traffic Survey
18. The Consultants shall undertake necessary surveys for classified traffic volume count,
origin-destination and commodity movement, characteristics axle loading, characteristics
intersection volume count, speed-delay characteristics, pedestrian/animal crossing. The
Consultants shall, immediately upon award of the work, submit to PMU, proposals regarding the
total number as well as the locations of the traffic survey stations as part of at each stage. Suitable
maps and charts should accompany the proposals clearly indicating the rationale for selecting the
location of survey stations. The methodology of collection and analysis of data, number and
location of traffic survey stations shall be finalized in consultation with PMU/PIU.
Traffic Demand Estimates
19. The Consultants shall make traffic demand estimates and establish possible traffic growth
rates in respect of all categories of vehicles, taking into account the past trends, annual population22
and real per capita growth rate, elasticity of transport demand in relation to income and estimated
annual production increase. The methodology for traffic demand estimates shall be finalized by
the Consultants in consultation with PMU/PIU. Overall traffic forecast thus made shall form the
basis for the design of each pavement type and other facilities/ancillary works.
Engineering Surveys and Investigations
Reconnaissance and Alignment
20. The Consultants shall make an in-depth study of the available land width (ROW),
topographic maps, and other available relevant information collected by them concerning the
existing alignment. The Consultants in coordination with the PMU will arrange the required maps
and the information needed by them from the potential sources. The detailed ground
reconnaissance may be taken up immediately after the study of maps and other data. The primary
tasks to be accomplished during the reconnaissance surveys include:
(i) Topographical features of the area;
(ii) Typical physical features along the existing alignment within and outside ROW i.e.
land use pattern;
(iii) Scheme for the widening of the existing road;
(iv) Realignment requirements;
(v) Preliminary identification of improvement requirements including treatments and
measures needed for the cross-roads;
(vi) Traffic pattern and preliminary identification of traffic homogenous links;
(vii) Sections through congested areas;
(viii) Inventory of major aspects including land width, terrain, pavement type,
carriageway type, bridges and structures (type, size and location), intersections
(type, cross-road category, location) urban areas (location, extent), geologically
sensitive areas, environmental features;
(ix) Critical areas requiring detailed investigations; and,
(x) Requirements for carrying out supplementary investigations;
(xi) Soil (textural classifications) and drainage conditions;
(xii) Type and extent of existing utility services along the alignment (within ROW).
21. The data derived from the reconnaissance surveys will be utilized for planning and
programming the detailed surveys and investigations. All field studies including the traffic surveys
should be taken up on the basis of information derived from the reconnaissance surveys.
Topographic Surveys
22. The basic objective of the preliminary topographic survey would be to capture the essential
ground features along the alignment in order to consider improvements and for working out
improvements, rehabilitation and upgrading costs. The detailed topographic surveys should be
taken up after the completion of reconnaissance surveys. The field surveys shall be carried out
using high precision instruments i.e. total station, auto level etc.
Details of Utility Services and Other Physical Features
23. The Consultants shall collect details of all important physical features along the alignment.
These features affect the project proposals and should normally include buildings and structures,
monuments, burial grounds, cremation grounds, places of worship railway lines, stream / river /
canal, water mains, severs, gas/ oil pipes, crossings, trees, plantations, utility services such asYou can also read
