ASIAN DEVELOPMENT BANK TAR: 0TH 32177 DEVELOPMENT BANK TAR: 0TH 32177 TECHNICAL ASSISTANCE (Financed from the Japan Special Fund) FOR MEASUREMENT OF ENVIRONMENTAL PERFORMANCE July

ASIAN DEVELOPMENT BANK TAR: 0TH 32177

TECHNICAL ASSISTANCE(Financed from the Japan Special Fund)

FOR

MEASUREMENT OF ENVIRONMENTAL PERFORMANCE

July 1998

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Currency Unit - Peso

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$1.00 = P41.40

ABBREVIATIONS

COR Cost of RemediationDENR Department of Environment and Natural ResourcesDMC Developing Member CountryEQI Environmental Quality IndicatorGDP Gross Domestic ProductLao PDR Lao People's Democratic RepublicOEOC Office of the Chief, Office of Environment and

Social DevelopmentPRC People's Republic of ChinaTA Technical Assistance

NOTES

In this Report, "$" refers to US dollars.

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I. INTRODUCTION

1. Consistent with the Bank's medium-term strategic objectives and policies,Bank-funded projects aim to improve the economic well-being for beneficiaries whileprotecting the natural environment. In recent years, the Bank has recently allocatedsignificant amounts of resources for the enhancement of environmental quality andimproved environmental management in developing member countries (DMCs).

2. As a broad-based development institution, the Bank should ensure that itslending support projects and programs that promote economic growth together with thebest possible improvement in environmental quality. It is also important that the Bankpursue a better environmental investment portfolio across different countries. Such effortswill require an objective assessment of Bank-funded environmental projects andprograms. 1 Development projects should mitigate adverse environmental impacts, andenvironmental projects should enhance environmental quality.

3. The Bank's Regional Technical Assistance (TA) Screening Committeeendorsed the approach and management approved the concept on 2 March 1998 for a TAon Environmental Performance in Selected DMCs. 2 A May 1998 Fact-finding Missionreached an understanding with the participating DMCs on the objectives, scope, terms ofreference, cost estimates and implementation arrangements of the TA.3

II. BACKGROUND AND RATIONALE

4. The Bank took several steps in 1997 toward improving performanceevaluation and the quality of Bank assistance to DMCs. A Project PerformanceManagement System (PPMS) was formulated by the Bank to serve as a management toolfor planning, managing, monitoring, and evaluating progress and impacts during the entireproject cycle. The report on overall impact assessment methodology and the indicators tobe used are being formulated at present. Within the framework of this new system, theconcept of project performance report was introduced and is currently under trialimplementation in selected projects. The new type of report is intended not only to gaugephysical and financial progress, but also to highlight progress toward achievingdevelopment objectives. Environmental performance has been identified as a main focusfor this work, and the TA will provide inputs to performance indicators on environmentalaspects for inclusion in these new performance measuring mechanisms.

5. An earlier TA4 developed and tested environmental indicators formonitoring and assessment of environmental performance of DMCs. It involved anextensive review of literature on environmental quality indicators and their use, which

1The Banks environmental Iendng amounted to $523 million n 1997 or 11 percent of total Bank lending.

2

As endorsed by the committee the concept and the approach for the TA is regional, although pilot testing willonly be conducted in one country (reference: 02 March 1998 memo of VPs (West and East) regarding the TA).The TA first appeared in the ADB Business Opportunities (Internet Edition ) in February 1998.TA No. 5542-REG: Environmental Indicators and Indices, for $818000, approved on 16 August 1993.

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resulted in the selection of three indicators 1 for testing in 20 countries in the Asian region.The results were published in 1997 in a report entitled Measuring Environmental Qualify inAsia and as an environmental paper entitled Measuring Environmental Performance inAsia. 2 Appendix 1 summarizes the important findings of the TA. Its focus was primarily onmethodological development and undertaking country-level case studies; hence, resultswere merely indicative of the overall environmental quality of the countries studied.

6. Results of TA No. 5542-REG were disseminated through a limited numberof seminars conducted in and outside the Bank, including the World Bank's conference onenvironmental indicators in October 1997 in New York. Seminar participants andprominent authorities in the field have commended the Bank's effort. However, thelimitations of the study were well recognized; they include issues related to methodology,data availability, and the scale of assessment. The data used were highly aggregated tonational scales. Any country-level performance indicator faces problems of dataaggregation omissions and sampling errors similar to widely accepted shortcomings ofeconomic indicators such as gross national product or national income. These limitationshighlight the need to (i) refine methodologies developed in TA No. 5542-REG to assessenvironmental quality, (ii) test the indicators in different scales of Bank operations (country,sector, or project), and (iii) develop or improve environmental databases for performancemeasurements in the DMCs. The TA will address these ssues as a follow-up to TA No.5542-REG.

Ill. THE TECHNICAL ASSISTANCE

A. Objective

7. The TA will review, modify, and test environmental quality indicatorsincluding those used in TA No. 5542-REG in selected sector and project-level investmentsto improve the measurement of environmental quality with respect to development impacts

B. Scope

8. The TA will consist of two phases:

In Phase I, the TA will involve a national workshop in the Philippines todisseminate and validate the findings of TA No. 5542-REG and to identifypertinent new issues. At least one national workshop will be held then (ineither Bangladesh or the People's Republic of China [PRC]) to reviewproposals to alter the methodologies and to identify required adjustmentsfor replicability in other DMCs.

The three indicators are (i) cost of remediatiori, defined as the estimate of resources required to restoreenvironmental quality to a desired level as measured by a predefined standard; (ii) environmental elasticity,which measures the percentage change in environmental quality with respect to the percentage change ineconomic development, and shows the trend in the changes to the economy and the environment in a country;and (iii) environmental diamond" which is a physical measure of four key environmental variables expressedas a diagram designed to compare actual conditions with a predetermined ideal.

2

Jalal, K. F. and P. P. Rogers. 1997. Measuring Environmental Performance in Asia. ADB Environment PaperNo. 13.

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In Phase 2, indicators (particularly those used in TA No. 5542-REG) forapplication in the assessment of the Bank's sector investments and theirimpact on development and the environment will be refined. Then, basedon the modified methodologies, a few sector-specific examples that can beused for demonstration purposes will be developed.

9. The TA will be implemented at first in only one DMC. The Philippines hasbeen chosen as the pilot case, because time series environmental data can be obtainedfrom its environmental management system, and localized environmental data is availabledue to the country's decentralization of environmental management. Also, Bank-fundedprojects in the Philippines cover a wide range of sectors. Ideally, this pilot case will bereplicated in other DMCs through a future TA. The concept of having a pilot case is furtherjustified by the uncertainty in results obtained, and setbacks in data availability. Thecoverage of the TA requires an innovative approach, which has a degree of high risk, andthe achievement of the TA's objective will be a difficult task.

10. The TA will cover sectors such as urban environment and naturalresources (including forests and coastal resources), as well as issues like energy-environment relationships. The first phase of the TA (dissemination activities) will set thestage for the second phase of work on refining the indicators. After Phase I, there will be ameeting to review the methods, devise strategies to overcome any data problems, anddecide on directions for proceeding with remaining TA activities.

11. The second phase of the TA will consist of six components: (i) a review ofthe Bank's project and sector investments in the Philippines to assess the environmentaland economic impacts as well as the degree of success; (ii) data collection on theseinvestments and their environmental impacts; (iii) consultation with other developmentassistance organizations on selection and application of environmental quality indexes; (iv)evaluation of project effects and sector performance, including the refinement of themethodologies for deriving indicators used in TA No. 5542-REG; and (v)recommendations to the Bank for future investment priorities in terms of projects andsectors, institutional mechanisms for monitoring environmental changes, and suggestionsfor integrating environmental indicators with measures of overall development impacts.The work will also utilize databases developed under a recently concluded TA. 1 ThroughTA No. 5555-REG, a Philippine Framework for the Development of EnvironmentalStatistics was developed, including a compendium of time series environmental statistics.Building on a Philippine Government executive order to institutionalize environment andnatural resource accounting, 2 the TA will further streamline data requirements forenvironmental performance measurement, and develop a framework for more efficientdata collection.

TA No. 5555-REG: Institutional Strengthening and Collection of Environmental Statistics in Selected DMCs, for$900,000, approved on 18 November 1993. The findings and results were finalized in a closing workshop inMay 1998.

Executwe Order 406 (21 March 1997), Institutionalization of Philippine Economy-Environment and NaturalResource Accounting.

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12. The TA will help develop performance measures that considerenvironmental quality for use in the assessment of Bank investments. The TA results willcomplement the framework and assessment procedures proposed by various Bankdepartments for assessing the development impacts of Bank investments. Follow-upactivities may be undertaken under a future TA if results of the TA are of merit. The TAframework is presented in Appendix 2.

C. Cost Estimate and Financing Plan

13. The total cost of the TA is estimated at $541 000 equivalent, comprising$375,000 in foreign exchange cost and $166,000 equivalent in local currency cost. The TAwill be financed by the Bank on a grant basis from the Japan Special Fund, funded by theGovernment of Japan. The Bank will finance $441,000, which will be the entire foreignexchange cost and $66,000 equivalent of the local currency cost. The contribution of theGovernment is valued at $100,000. Details of the cost estimates and financing plan aregiven in Appendix 3.

0. Implementation Arrangements

14. An interdepartmental steering committee of Bank staff has been formed toreview the results of TA No. 5542-REG and to guide preparation of the TA. The steeringcommittee will also provide guidance in TA implementation, while the Bank's Office of theChief, Office of Environment and Social Development (OEOC), will execute the TA. ThePhilippine Department of Environment and Natural Resources (DENR) will function as theImplementing Agency. DENR will nominate a suitably qualified focal person to overseelocal activities and to liaise with officials in relevant agencies such as the FinanceDepartment, National Economic and Development Authority, National Statistics Office, andnongovernment organizations. The focal person in coordination with the Philippine Councilfor Sustainable Development will establish a multisector working committee. Its memberswill be senior-level officials with qualifications acceptable to the Bank.

15. The TA will be carried out over a period of eight months. A consulting firmwith a multidisciplinary team of international and domestic consultants (6 person-months ofinternational consultants and 8 person-months of domestic consultants), along with anindividual consultant to serve as environmental quality index specialist (2 person-monthsof international consultant), will work closely with DENR. The consultants will be selectedin accordance with the Bank's Guidelines on the Use of Consultants and otherarrangements satisfactory to the Bank on engagement of local consultants. Theconsultants will have expertise in environmental index development, statistics, economics,engineering, life sciences, impact assessment, and other relevant fields.

16. The consultants will prepare four reports: an inception report (whichincludes an evaluation of the findings of TA No. 5542-REG and new procedures to bedeveloped), an interim report, a draft final report, and a final report to be prepared asspecified in the terms of reference (Appendix 4). The terms of reference will be furtherrefined prior to and during the inception workshop.

17. OEOC will monitor and periodically report on the progress of TAimplementation. The procurement of equipment and materials needed for the TA will be

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undertaken using arrangements satisfactory to the Bank. The Government has agreed toprovide remuneration and per diem for counterpart staff, adequate office facilities,meeting/training space facilities, and to make data available whenever possible. The TA isscheduled to commence in August 1998 and to be completed in April 1999.

IV. THE PRESIDENT'S DECISION

18. The President, acting under the authority delegated by the Board, hasapproved the provision of technical assistance, on a grant basis, in an amount notexceeding the equivalent of $441 ,000 for the purpose of Measurement of EnvironmentalPerformance, and hereby reports such action to the Board.

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Appendix 1, page 1

SUMMARY OF TECHNICAL ASSISTANCE FINDINGS1

1. This appendix summarizes the results of the Bank's technical assistance(TA) on environmental indicators and indexes that developed three methodologies forcross-country comparison of environmental performance. 2 The first, cost of remediation(COR), is defined as the total investment required to move from the existing state of theenvironment to a desired one as measured by predetermined standards. The second,environmental elasticity, measures the percentage change in environmental quality withrespect to the percentage change in economic development and shows the trend ineconomic and environmental changes in a country. Third, the 'environmental diamond" isa physical measure of four key environmental variables expressed as a diagram and usedto compare actual conditions with a predetermined ideal.

2. While many factors contribute to quality of life (including socioeconomicdevelopment and environmental quality), relatively few environmental indexes have beenconceived that are widely accepted. By contrast, many socioeconomic indicators havebeen developed and are generally used: gross domestic product, consumer price index,human development index, etc. The three new measures of environmental performance,along with existing socioeconomic indicators, are intended to aid development planners informulating better strategies for environmental and socioeconomic development ofdeveloping member countries (DMCs) of the Bank.

3. Data gathered by the TA from 20 DMCs covering a ten-year period showthat the total COR (or cost of "cleaning up" the environment) in the developing countries ofAsia and the Pacific amounts to about $35 billion per year. Of this, more than 85 percent(or $30 billion per year) is required by five countries (in descending order): People'sRepublic of China (PRO), India, Mongolia, Indonesia and Pakistan. Except for Mongolia,these countries also happen to be the Bank's major borrowers. The results of this TAindicate that these five countries are likely to continue to dominate the Bank's lendingprofile for years to come.

4. In the Asian and Pacific region, the annualized COR as a percentage ofGDP varies between 0.24 percent (Singapore) and 7.43 percent (Lao People'sDemocratic Republic). Mongolia has an especially high figure, since its COR forecosystems is affected by extreme weather conditions. In general, the transitionaleconomies (from planned economy to market economy) including Cambodia, PRC, LaoPDR, and Viet Nam demand the highest allocation of GDP (>4.5 percent) forenvironmental cleanup in order to achieve environmental goals, followed by India,

TA No. 5542-REG; Environmental Indicators and Indices, for $818 000, approved on 16 August 1993.

2 Jalal, K. F. and P. P. Rogers, 1997. Measuring Environmental Performance n Asia. ADB Environment PaperNo. 13. The study used data from Bangladesh, Bhutan, Cambodia, People's Republic of China, Republic ofKorea, Lao People's Democratic Republic, Mongolia, Myanmar, Nepal, Pakistan, Sri Lanka, Viet Nam, India,Indonesia, Papua New Guinea, Philippines, Thailand, Fiji, Malaysia. and Singapore.

(Reference in text: page 1, para. 5)

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Appendix 1, page 2

Pakistan, Papua New Guinea, and Sri Lanka (2-4.5 percent). However, the demandfor external financing of environmental projects in these countries should be dependentupon their ability to mobilize domestic resources as well as their technologicalcapabilities. Data from selected Organization and Economic Cooperation andDevelopment countries reveal that these countries allocate 1.5-2 percent of their GDPfor environmental protection expenditures among other DMCs vary but should approacha target of 1 percent. Despite the uncertainties regarding how much a country canafford and is willing to pay for its environmental cleanup, it is reasonable to concludethat countries with higher COR/GDP ratios are more likely to require external financialassistance.

5. In terms of the environmental impact of economic development, theenvironmental elasticity values computed for 16 Asian countries indicate that, from 1980 tothe early 1990s, Lao PDR, Myanmar, and Sri Lanka have had the best performance. Theincrease of GDP growth rates has been accompanied by positive environmental changes,i.e., improvement in environmental quality or reduction of environmental pressure, aseemingly sustainable scenario. The other countries have all experienced negativeenvironmental changes as their economy grew. However, with the exception of Viet Nam,their rates of environmental deterioration have been generally lower that their rates ofeconomic growth, which we characterize as "weakly sustainable." In particular, the twolargest countries, PRC and India, are ranked favorably. This suggests that, although thetwo countries may face enormous environmental challenges, their rates of environmentaldeterioration may have either slowed or remained relatively low. In contrast, for Viet Nam,every 1 percent increase of GDP has been achieved at the expense of more than 1percent decrease in the environmental aggregate, i.e.. decrease in environmental qualityor increase of environmental pressure.

6. Looking at the overall state of the environment using the "environmentaldiamond" constructed for the 16 countries, the Philippines plus several South Asiancountries including Bangladesh, India, and Sri Lanka have performed better than theaverage. At the other end of the spectrum, PRC and Mongolia seem to have a muchworse-than-average state of the environment.

7. Future methodological refinements should focus on sector-specific andproject-level indexes to help the Bank to assess the impacts of past investments. Suchindexes measuring environmental impact of projects would require economic andenvironmental information covering periods both before and after the project.

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Appendix 2, page 1

TECHNICAL ASSISTANCE FRAMEWORK

Project Component Targets Monitoring Risks!Assumptions

I. Sector Goal

Better environmental qualityin developing membercountries and qualityimprovement in Bankinvestments through closeradherence to medium-termstrategic framework.

II. Project Objective

Review, modify, and testindicators environmentalquality indicators to improvethe measurement ofenvironmental quality inselected sector and project-level investments byconducting a pilot case study

Ill. Outputs

Dissemination seminars (onenvironmental qualityindicators); measures forenvironmental quality(appropriately reviewed,screened, developed, andtested); suggestions for datarequirements and institutionalmechanisms to collect andprocess such data; theidentification of investmentpriorities with projects andsectors as units; andsummary of major findings forfuture directions.

Dissemination of TA No. 5542-REG findings; revision ofproject and sector investmentsand their impact onenvironment, review andselection of environmentalquality indicators forapplication by Bank andDMCs; prioritization of projectsand sectors; and identificationof data and institutionalrequirements forenvironmental qualitymeasurement.

Present options that aresuitable for measuringdevelopment impacts withreference to the environment.The selection of Options is tobe clearly presented accordingto the scale of investment (i.e.sector, project) and dataavailability in DMCs.

Establish more effective waysto measure developmentperformance with reference tothe environment, according tothe data limitations in DMCsand Bank priorities.

Progress reports,technical assistancereview missions, andimplementing agencymonitoring.

Progress reports, TAreview mission, andimplementing agencymonitoring.

All reports will bereviewed anddiscussed by theBank, implementingagency, and thesteering committee(multisectoral workingcommittee)

Commitment fromthe Governmentand implementingagency, and dataavailability.

Commitment fromthe Governmentand implementingagency. Changesin environmentaldata collection andperformancemeasurementsystems will beintroduced.

Preparatory andorganizationaloversights


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Appendix 2, page 2


IV. Activities

1. Determine modificationsrequired from EQIsdeveloped under TA No.5542-REG.

2. Develop and test refinedmethods to measureenvironmental quality in theregion using the Philippinesas a pilot case.

3. Based on the refinements,develop a few sector-specificexamples for demonstrationpurposes.

4. Review project and sectorinvestments of the Bank withrespect to EQIs.

5. Develop recommendationsfor Bank and DMCinvestment priorities in termsof projects, sectors, andinstitutional mechanisms formonitoring environmentalchanges.

Modified EQIs withdocumentation ofmeasurement methodology

Effective EQls derived throughconsensus from consultationwith relevantdepartments/offices in theBank, development assistanceorganizations, andstakeholders in DMCs.

Sector-specific examples thatare fully documented anddemonstrable.

Evaluation of developmentimpacts via investments.

List of priority projects andsectors, with a methodologyfor determining prioritization.Documentation of institutionalrequirements. Integration ofEQls into measures of overalldevelopment.

OEOC and thesteering committeewill review the resultsand monitor theprogress of TAimplementation, whileimplementing agencywill oversee day-to-day activities.



OEOC and thesteering committeewill review the resultsand monitor theprogress of TAimplementation, whileimplementing agencywill oversee day-to--day activities.


Commitment fromthe Government,implementingagency, and theavailability of data.





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A series of workshops will beheld primarily targetingpolicymakers. Workshops willprovide opportunities forbroad-based consensusbuilding for the EQ Is.

Briefing workshops

Final workshop

Final results will be presented

10

Appendix 2, page 3


6. Conduct Workshops.

National workshops The workshops will OEOC, steering Preparatory anddisseminate and validate committee, organizationalfindings, and identify new implementing agency, oversight.issues and potential problems. and consultants will

review all plansbefore proceedingwith each workshop.

Inception/review workshop The workshop will establish acommon understanding of theframework for stakeholders.

OEOC, steering Preparatory andcommittee, organizationalimplementing agency, oversight.and consultants willreview all plansbefore proceedingwith each workshop.



V. Inputs International consultantservices for 8 person-monthsinclusive of EQI Specialist for2 person-months; Localconsultants for 8 person-months

Bank financing of $441 000equivalent

Government commitment of$100,000

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Appendix 3

COST ESTIMATES AND FINANCING PLAN($'OOO)

Foreign Local TotalItem Exchange Currency Cost

A. Bank Financing (Japan Special Fund)

1. Consultantsa. Remuneration and Per Diem

i. International Consultantsii. Domestic Consultants

b. International Travelc. Domestic Traveld. Communicationse. Reports

i. Preparationii. Printing

2. Seminars and Conferences3. Contingencies

Subtotal (A)

B. Government Financing

1. Remuneration and Per Diem of CounterpartStaff

2. Transport and Communications ofCounterpart Staff

3. Office Accommodations4. Others (data collection, etc.)

Subtotal (B)

Total

Source: Staff estimates.


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Appendix 4, page 1

TERMS OF REFERENCE FOR CONSULTING SERVICES

A. Introduction

1. General

1. The Bank will recruit a consulting firm to assist in the implementation of thetechnical assistance (TA) for the measurement of environmental performance. Theinternational consulting firm will have extensive experience in Asia. The consulting firm willprovide a total of 14 person-months of experts (6 person-months of internationalconsultants and 8 person-months of domestic consultants). The consultants will haveexpertise in environmental index development, statistics, economics, engineering, lifesciences, impact assessment, and other relevant fields. An individual internationalconsultant will provide a total of 2 person-months to serve as workshop coordinator, andwill have expertise in index development and environmental economics.

2. Team Leader

2. The international consulting firm will appoint a team leader with thefollowing qualifications:

Expertise in index development with multidisciplinary exposure andexperience in environmental issues.

ii. Familiarity with environmental issues, particularly in the natural resources,agriculture, water, and energy sectors, as well as economy-environmentinteractions.

iii. Extensive experience in leading study teams and in conducting analyticalwork.

B. Detailed Terms of Reference

1. Environmental Quality Index Specialist (internationally-recruitedindividual consultant)

3. The environmental quality index specialist will serve in the field and at Bankheadquarters. The specialist will work closely with the Office of the Chief, Office ofEnvironment and Social Development and will be assisted by the TA coordinator.

4. The specialist will have the following responsibilities:

Organize the inception/review workshop to be held at the Bankheadquarters. The workshop will involve experts in environmentalassistance programs, index development, environmental impactassessment and other related fields. Participants will be representatives of

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Appendix 4, page 2

other multilateral and bilateral agencies, academic institutions, keygovernment environmental and financial agencies, and nongovernmentorganizations. During the inception workshop a common understanding offramework will be established among stakeholders. The detailed programfor the TA will also be agreed upon.

iii. Conduct national workshops to further disseminate and validate findings,and identify new issues and problems that were previously unanticipated.The workshops will include individuals with hands-on experience inenvironmental assistance programs and projects, government officials, andrepresentatives from other bilateral and multilateral developmentassistance and financial organizations.

2. International Consulting Firm

a. Review of Bank Projects

5. The consultant will have the following responsibilities:

Review the sector distribution of Bank investments in the Philippines interms of the amount and number of projects and determine the focus ofinvestment.

Assess the environmental and economic impacts and the degree ofsuccess of past Bank projects using information from the PostevaluationOffice and individuals involved or affected by the projects. Interviews andfocus group meetings wilt be conducted to investigate the opinion of pastbeneficiaries on the projects impacts

b. Gathering Data on Project Costs and Environmental Impacts

6. The consultant, in collaboration with the TA No. 5555-REG 1 executingagency, will have the following responsibilities:

Collect information on total costs, benefits, and other relevant informationregarding projects.

Collect information on environmental changes due to the projects includingto the following types of environmental changes: (a) air emission reductionor increase (b) wastewater discharge arid treatment (c) erosion controlledarea (d) number of species and total area protected and (e) coastal areamanagement.

c. Evaluation of Project Effects and Sector Performance

TA No. 5555-REG: Institutional Strengthening and Collection of Environmental Statistics in Selected DMCs, for$900,000, approved on 18 November 1993,

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7. The consultant, in consultation with other aid agencies (World Bank, UnitedStates Agency for International Development, Economic and Social Commission for Asiaand the Pacific, and other multilateral financial institutions and bilateral agencies that workin similar areas), will have the following responsibilities:

Refine the methodologies for deriving indicators, including those developedin TA No. 5542-REG.1

ii. Test the usefulness of the indicators at the project level and at the sectorlevel.

iii. Examine the existence of any differences between the project-levelenvironmental mitigation costs (actual) and estimated mitigation cost usingTA No. 5542-REG methodologies.

iv. Estimate the proportions of the above differences for various types ofdevelopment projects, such as those in which environmental improvementwas the primary objective, and others in which economic growth was theprimary objective.

v. Conduct cross-sector comparisons of the cost-effectiveness of Bankinvestment projects

d. Recommendation of Environmental Investment Priority andInstitutional Arrangements

8. The consultant will have the following responsibilities:

Recommend sectors for priority Bank investment where greatest win-winand other beneficial options are expected.

ii. Recommend sectors for priority investment where Bank investments havealready proven to be more cost-effective.

iii. Recommend institutional arrangements for an efficient data collectionframework of environmental statistics for monitoring environmentalchanges as a result of new investments and assessing environmentalperformance and economic development in general in the developingmember countries.

iv. Recommend how environmental quality indicators can be integrated intomeasures of overall development impacts

C. Reports

1 TA No, 5542REG Environmental Indicators and Indices, for $818 000, approved on 16 August 1993.

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Appendix 4, page 4

9. The consulting firm will submit four reports:

An inception report with the work plan, schedule, outline of the draft reportand an evaluation of the findings in TA No. 5542-REG is to be submittedwithin four weeks of fielding consultants. The inception report will bereviewed by the TA steering committee and by the implementing agencieswithin two weeks of submission.

An interim report that discusses the accomplishments of phase 1 and setsout the plans for phase 2 is to be submitted four months after contracteffectiveness and will be discussed by the TA steering committee,implementing agencies, and the consulting firm.

iii. A draft final report to be submitted within six months after contracteffectiveness should contain a discussion on the workshops conducted andlessons learned, refinements developed for the environmental performanceindicators, application to Bank investment projects, and recommendations.

iv. A final report incorporating comments from the TA screening committeeand implementing agencies must be submitted at the end of the eighthmonth after contract effectiveness.

10. The consultant will submit five copies each of the first three reports and tencopies of the final report. The final report should also be submitted in diskette form andshould include a 10-12 page executive summary.

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Documents

ASIAN DEVELOPMENT BANK TAR: 0TH 32177 DEVELOPMENT BANK TAR: 0TH 32177 TECHNICAL ASSISTANCE (Financed from the Japan Special Fund) FOR MEASUREMENT OF ENVIRONMENTAL PERFORMANCE July