Embed Size (px)
Citation preview
1
Project Number: 43464 Loan and/or Grant Number(s): LXXXX; TAXXXX August 2011
India: Himachal Pradesh Clean Energy
Transmission Investment Program
Facility Administration Manual
Contents
ABBREVIATIONS 4
I. FACILITY DESCRIPTION 1
II. IMPLEMENTATION PLANS 2
A. Project Readiness Activities 2 B. Overall Project Implementation Plan 3
III. PROJECT MANAGEMENT ARRANGEMENTS 4
A. Facility Implementation Organizations – Roles and Responsibilities 4 B. Key Persons Involved in Implementation 5 C. Project Organization Structure 6
IV. COSTS AND FINANCING 7
A. Facility Cost Estimates 7 B. Fund Flow Diagram 8
V. FINANCIAL MANAGEMENT 9
A. Financial Management Assessment 9 B. Disbursement 10 C. Accounting 11 D. Auditing 11
VI. PROCUREMENT AND CONSULTING SERVICES 12
A. Advance Contracting and Retroactive Financing 12 B. Procurement of Goods, Works and Consulting Services 12 C. Procurement Plan 13 D. Consultant's Terms of Reference 16
VII. SAFEGUARDS 17
VIII. GENDER AND SOCIAL DIMENSIONS 18
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 19
A. Project Design and Monitoring Framework 19 B. Monitoring 21 C. Evaluation 22 D. Reporting 22 E. Stakeholder Communication Strategy 22
X. ANTICORRUPTION POLICY 23
XI. ACCOUNTABILITY MECHANISM 24
XII. RECORD OF PAM CHANGES 25
Attachment 1 – Consultant TOR 26
Facility Administration Manual Purpose and Process
1. The facility administration manual (FAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The FAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the FAM.
2. The executing and implementing agencies are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by executing and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.
3. At Loan Negotiations the borrower and ADB shall agree to the FAM and ensure consistency with the Framework Financing Agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the FAM and the Framework Financing Agreement, the provisions of the Framework Financing Agreement shall prevail.
4. After ADB Board approval of the project's report and recommendations of the President (RRP) changes
in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the FAM or subsequent Project Administrative Manuals (PAMs), if applicable.
Abbreviations
ADB = Asian Development Bank ADF = Asian Development Fund AFS = audited financial statements CAG = Comptroller and Auditor General of India CQS = consultant qualification selection DEA = Department of Economic Affairs, Ministry of Finance, Government of India DMF = design and monitoring framework EARF = environmental assessment and review framework EIA = environmental impact assessment EMP = environmental management plan ESMS = environmental and social management system FAM = facility administration manual GACAP = governance and anticorruption action plan GDP = gross domestic product GIS = gas insulated switchgear GOHP = Government of Himachal Pradesh GOI = Government of India HPPTCL = H.P. Power Transmission Corporation Ltd. HPSEB = Himachal Pradesh State Electricity Board ICB = international competitive bidding IEE = initial environmental examination IPP = indigenous people plan IPPF = indigenous people planning framework LAR = land acquisition and resettlement LIBOR = London interbank offered rate NCB = national competitive bidding NGOs = nongovernment organizations PAI = project administration instructions PAM = project administration manual PIU = project implementation unit QBS = quality based selection QCBS = quality- and cost based selection RRP = report and recommendation of the President to the Board SBD = standard bidding documents SGIA = second generation imprest accounts SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy TA = technical assistance TOR = terms of reference
1
I. FACILITY DESCRIPTION
1. The investment program will fund electric transmission system upgrades and expansion in the state of Himachal Pradesh, India in order to increase transmission system capacity. Outputs will be new transmission substations and high voltage transmission lines. A capacity development component will benefit Himachal Pradesh Power Transmission Company Ltd. (HPPTCL), the state’s transmission utility, which will assist the state to achieve its power sector reform objectives including the formation and an independent transmission utility. 2. Impact and Outcome. The Program’s impact would be a robust power transmission network for extending clean energy for industry, commerce and households in Himachal Pradesh and in other states in India. The Program’s outcome would be a sound transmission utility company having assets and capacity to support the power sector reforms in the state. 3. Outputs. The Program’s outputs will include two major areas, (i) physical investments in transmission infrastructure, including transmission substations and high voltage lines, and (ii) capacity development for the state transmission utility company. Specifically, the first project of the MFF will fund the following four subprojects:
(i) 66/220/400 kV gas insulated switchgear (GIS) substation at Wangtoo, District Kinnaur, and connecting 400 kV double circuit transmission line,i.e. loop-in loop-out (LILO) from Wangtoo to Abdullahpur
(ii) 220/400 kV GIS substation near Pragati Nagar, District Shimla, plus connection line by LILO of 400 kV D/C line from Jhakri to Addullahpur
(iii) 66/220 kV GIS substation at Bhoktoo, District Kinnaur plus connection line by LILO of 220 kV D/C line from Kashang to Bhaba
(iv) About 28 km transmission line (220 kV double circuit line) from Hatkoti to Pragati Nagar, District Shimla
4. Additional subprojects for future tranches are expected to include the following, though alternate subprojects can be added or substituted provided they meet the selection criteria as specified in the Framework Financing Agreement (FFA).
(i) 132/220 kV pooling station at Naggar plus connection line (ii) 33/220 kV, 50/63 MVA pooling station at Lahal plus connection line (iii) 66/22 kV, 2x6.3 MVA pooling station at Kilba plus connection line (iv) About 24 km 220 kV double circuit transmission line from Sunda to Hatkoti (using
twin Moose conductor) (v) 132/220 kV, 2x100 MVA pooling station at Sunda (vi) 220 kV switching station at Hatkoti (four 220 kV GIS feeder bays) (vii) Addition of 220/400 kV, 315 MVA transformer at Gumma (near Pragati Nagar) (viii) 220/400 kV, 2x315 MVA pooling station at Lahal (ix) 400 kV double circuit transmission line from Lahal to Chamera pooling station (using
twin Moose conductor) (x) 132/220 kV, 2x100 MVA pooling station at Koti (xi) 220 kV double circuit line from Koti to Koria 220 kV substation (xii) 33/220 kV pooling station at Naggar, plus 220 kV Naggar- Banala double circuit line
(using quad Moose conductor) (xiii) 33/132 KV 31.5MVA Pandoh Substation plus LILO of 132 KV Bajaura-Kangoo Line
2
5. Capacity development activities will strengthen procurement and financial management capacity, and support HPPTCL staff to manage its growing asset size. It will also fund a computerized enterprise resource planning solution covering accounting and management information system applications, and will finance the purchase of software, hardware, training, and initial system maintenance.
II. IMPLEMENTATION PLANS
A. Project Readiness Activities
Activities
March April Sept. Oct.-Nov. Nov. Who responsible
Establish project implementation arrangements X HPPTCL
Commencement of Advance contracting actions X ADB, HPPTCL
Government budget inclusion X GOHP
ADB Board approval X ADB
Tranche 1 Loan signing X ADB, DEA
Government legal opinion provided X GOHP, GOI
Loan effectiveness X ADB
3
B. Overall Project Implementation Plan
The Tranche 1 implementation Plan is shown below. 2011 2 0 1 2 2 0 1 3 2 0 1 4
Activity
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Loan Approval
Loan Effectivity
Output 1: Construction of Power Transmission Lines
Activity 1.1: Construction of Transmission Line
Appointment of Implementation Contractors
Equipment , Procurement/Supply
Design, Construction & Commissioning
Output 2: Construction of pooling stations
Activity 2.1: Construction of
Substations
Appointment of Implementation Contractors
Equipment, Procurement/Supply
Design, Construction & Commissioning
Output 3: Capacity building
Activity 3.1: Training and study tours
Activity 3.2: ERP and IT facilities
A. MANAGEMENT ACTIVITIES
EMP Activities
Forest and crop compensation
Land Requirement
Resettlement Plan
Mid Term Review
Project Completion Report
4
III. PROJECT MANAGEMENT ARRANGEMENTS
A. Facility Implementation Organizations – Roles and Responsibilities
Program/Subproject
implementation organizations
Management Roles and Responsibilities
Executing agency H. P. Power
Transmission Corporation Ltd. (HPPTCL)
Overall responsibility for execution of the Investment Program and subprojects.
Implementing agency H. P. Power
Transmission Corporation Ltd. (HPPTCL)
Responsibility for the day-to-day coordination, implementation, and administration of the investment subprojects and capacity development components.
The PMU within HPPTCL’s head office will cover the overall MFF and perform financial reporting management functions.
The PMU will include field personnel, performing project site-specific monitoring, construction supervision, and reporting.
ADB Support implementation including compliance by
the executing and implementing agency of its obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.
Coordinate subproject-level due diligence and approval of subsequent loan tranches
5
B. Key Persons Involved in Implementation
Executing Agency / Implementing Agency H.P. Power Transmission Corporation Ltd. (HPPTCL)
Officer's Name: Mr. V.K. Kaprate Position: Director (Planning & Contracts) Telephone No.: 91-177-262-3415 Fax No.: 91-177-262-6284 Email adress: [email protected] Officer's Name: Mr. H. S. Beshtoo Position: Director (Projects) Telephone No.: 91-177-262-3406 Fax No.: 91-177-262-6284 Email adress: [email protected]
Office Address: Barowalia House, Khalini, Shimla 171002 Himachal Pradesh, India
ADB
South Asia Energy Division Staff Name: Yongping Zhai Position: Director Telephone No.: +63 2 632-6301 Email address: [email protected]
Mission Leader Staff Name: Andrew Jeffries Position: Senior Energy Specialist Telephone No.: +63 2 632-5147 Email address: [email protected]
6
C. Program Organization Structure
Government of India
Government of Himachal Pradesh
(MPP & Power Department)
H.P. Power Transmission
Corporation Ltd.
Central Level
State Level
Executing Agency
(EA)
Project Management Unit (PMU)
- Project Implementation - Contracts (Procurement) - Land Acquisition - Finance/Accounts - Environment and Social Cell
Project Level
Ministry of Power Ministry of Finance
(Department of
Economic Affairs)
Asian Development
Bank
(ADB)
7
IV. COSTS AND FINANCING
A. Facility Cost Estimates
6. The MFF is estimated to cost $437.85 million, and will consist of several tranches, subject to the government's submission of related periodic financing requests, execution of the related loan and project agreements for each tranche, and fulfillment of terms and conditions and undertakings set forth in the framework financing agreement. The financing plan is shown below.
Table 2: Financing Plan
Source Amount ($ million)
Share of Total (%)
Asian Development Bank 350.00 79.9 Government of HP 87.85 20.1
Total 437.85 100.0 HP = Himachal Pradesh Source: Asian Development Bank Estimates.
7. The first tranche loan is for $113 million. Detailed cost estimates for each tranche will be prepared and included with each PFR. Individual loans will include taxes and duties for the subprojects,1 as well as imbedded costs in supply and erection contracts such as taxes, transport (including local transport), freight, and insurance costs. 8. All provisions of the ordinary operations loan regulations applicable to London interbank offered rate (LIBOR)-based loans2 will apply to each loan, subject to any modifications that might be included under any loan agreement. The Government can choose from eligible currencies and interest rate regimes for each loan. The specific terms of each loan will be based on the related PFR, with interest to be determined in accordance with ADB’s LIBOR-based lending facility. The Government has provided ADB with (i) the reasons for its decisions to borrow under ADB’s LIBOR-based lending facility, and (ii) an undertaking that these choices were its own independent decision and not made in reliance on any communication or advice from ADB. 9. The Government will provide the proceeds of each tranche to GOHP and will cause the proceeds to be applied to the financing of expenditures on the subprojects and the capacity development component in accordance with the conditions set forth in the FFA and the legal agreements for each tranche. GOHP will onlend funds to HPPTCL under terms mutually acceptable to the Borrower and ADB. 10. Detailed cost tables by expenditure category, including separating these by financier, will be prepared for each proposed loan tranche and will be included in the PFR, along with the proposed financing arrangements.
1 ADB. 2008. Cost Sharing and Eligibility of Expenditures for ADB Financing. Operations Manual. OM H3/OP. Manila
(paragraph 9) provides that ADB financing of taxes and duties will be limited to the ceiling identified in the country partnership strategy (10% for India), will not represent an excessive share of the project investment plan, relate only to ADB-financed expenditures, and ADB financing is material and relevant to the success of the project. All these conditions have been met.
2 ADB. 2001. Ordinary Operations Loan Regulations Applicable to LIBOR-Based Loans Made from ADB’s Ordinary
Capital Resources. Manila.
8
B. Funds Flow Diagram
Payment
ClaimH.P. Power Transmission
Corporation Ltd. (HPPTCL)
(Executing Agency)
Asian Development Bank
Suppliers
Supplier’s Bank
(Commitment Procedure)(Direct Payment
Procedure)
Document Flow
Withdrawal
application
(Reimbursement and
Imprest Account
Procedures)
(Reimbursement & Imprest Account
Procedures)
9
V. FINANCIAL MANAGEMENT
A. Financial Management Assessment
11. A financial management assessment of the EA/IA (HPPTCL) was undertaken to assess its ability to undertake and fulfill ADB’s fiduciary requirements for the project components. The assessment was in accordance with ADB’s Financial Management and Analysis of Projects3 using the financial management assessment questionnaire and field interviews. 12. HPPTCL was established on 27 August 2008. Management has prepared two financial statements (2008-09 and 2009-10) which were audited by the Comptroller and Auditor General of India (CAG), the supreme audit authority in India. The audit reports do not contain any adverse comments. In addition, HPPTCL has engaged a chartered accountant firm as an internal auditor since FY 2009-10 with detailed terms of reference. HPPTCL has codified and adopted a detailed Delegation of Financial Power guidelines. These guidelines are based on the principle of centralized policy making at the board of directors level and decentralized execution at various officer levels according to their authorized limits of power. These guidelines delineate limits of authorization for each officer level for specified activities. This will help in execution of different projects timely with proper control measures. 13. Most of the accounts personnel in the corporate office as well as in the field offices are from Himachal Pradesh State Electricity Board Ltd. (HPSEBL). They are well conversant in accounting and different control aspects in power sector financial management. However, a shortage of staff is noted and the existing could benefit from training in recent changes in corporate accounting. The capacity development program included in tranche 1 of the MFF will include this training. Furthermore, management is in the process of filling different positions in the accounts section gradually as they are needed. 14. HPPTCL’s present accounting system in corporate office is “Tally ERP 9”, a computerized commercial accounting package. The unit offices use a manual system which is adequate for present accounting needs. However, as the company grows, further computerization will be required and is part of the tranche 1 capacity building activities, which will improve this system to cater the needs of all stakeholders including ADB. 15. The capacity development component of the proposed MFF (part of tranche 1) is designed to address needs identified by the financial management assessment, and will develop a computerized accounting system and management information system that will meet HPPTCL’s accounting and financial reporting requirements as well as the project level accounting and reporting requirements under the MFF. Staff will be trained in the new computerized accounting systems; corporate accounting procedures; and in all appropriate accounting, reporting, and audit functions. Furthermore, HPPTCL staff have participated in ADB-sponsored loan disbursement seminars. As a consequence of existing capacity, and the proposed upgrading and computerisation of accounting and management information systems and recommended training, the proposed project financial management arrangements are considered satisfactory.
3 ADB. 2005. Financial Management and Analysis of Projects. Manila.
10
B. Disbursement
16. The Loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time),4 and detailed arrangements agreed upon between the Government and ADB. 17. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),5 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5) to subprojects financed by ADB. 18. Disbursement of loan funds under the Facility will be mainly for the turnkey plant contracts for supply of equipment and materials, and erection of the transmission facilities, and for smaller expenditures under the capacity development component. ADB's commitment and direct payment procedures for supply of materials and reimbursement and imprest fund procedures for capacity development activities will be utilized. ADB’s statement of expenditures will be used to reimburse eligible expenditures, which will be applicable to individual payments of $100,000 or less. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.6 19. For each loan under the MFF, (i) the Government may establish a first generation imprest account (FGIA) with the Reserve Bank of India, and (ii) HPPTCL may establish a second generation imprest account (SGIA) at a commercial bank acceptable to ADB and the Government. The FGIAs and SGIAs under the MFF will be established, operated and maintained in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). The maximum ceiling of the imprest account(s) "in aggregate", if more than one imprest account will not at any time exceed the estimated ADB financed expenditures to be paid from the imprest account for the next 6 months or 10% of the respective loan amount, whichever will be lower. The request for initial advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet7 setting out the estimated expenditures for the first six (6) months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the borrower will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against the EA’s records.8 20. SOE procedures may be utilized for reimbursement and liquidation and replenishment of the imprest account(s), subject to a ceiling of $100,000. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent
4 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf
5 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
6 Checklist for SOE procedures and formats are available at:
http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls
7 Available in Appendix 29 of the Loan Disbursement Handbook.
8 Follow the format provided in Appendix 30 of the Loan Disbursement Handbook.
11
audit.9 21. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. The borrower is to consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing. C. Accounting
22. The executing agency will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow international accounting principles and practices or those prescribed by the Government's accounting laws and regulations. D. Auditing
23. The executing agency will cause the detailed consolidated project accounts to be audited in accordance with International Standards on Auditing and/or in accordance with the Government's audit regulations by an auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB within 6 months of the end of the fiscal year by the executing agency. The annual audit report will include a separate audit opinion on the use of the imprest accounts, SGIA, and the SOE procedures as applicable. The Government and the executing agency have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. For revenue generating projects only, ADB requires audited financial statements (AFS) for each executing and/or implementation agency associated with the project.
9 Checklist for SOE procedures and formats are available at:
http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls
12
VI. PROCUREMENT AND CONSULTING SERVICES
A. Advance Contracting and Retroactive Financing
24. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (2010, as amended from time to time) (ADB’s Procurement Guidelines)10 and ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time) (ADB’s Guidelines on the Use of Consultants).11 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, executing and implementing agencies have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the Project. 25. Advance contracting. To expedite implementation, the Government and GOHP have requested ADB’s approval to carry out advance actions for procurement of works and goods, and recruitment of consultants. This advance procurement action is intended to be used in all tranches of the MFF 26. Retroactive financing. Except as otherwise agreed with ADB, the expenditures incurred for equipment, civil works, and consulting services will be eligible for retroactive financing, provided that these are incurred before the effectiveness of the related loan agreement, but not earlier than 12 months preceding the signing of the related loan agreement, and as long as they do not exceed an amount of 20% of the individual loan. B. Procurement of Goods, Works and Consulting Services
27. A procurement capacity assessment of HPPTCL was conducted. HPPTCL has a Procurement Unit consisting of 8 personnel, headed by the General Manager (Procurement), who has considerable years of local procurement experience. Review of process control and oversight is satisfactory for local procurement of goods and services; for instance, bidding documents, advertisement of an invitation for bids, evaluation reports, and notice of award, and award of contracts are decided by the Board of Directors in accordance with their internal transparent procedures. While EA has good experience and knowledge in local procurement policies, they have limited experience for foreign procurement of goods works and services and with ADB’s latest procurement guidelines and policies. Continued attendance by HPPTCL staff to ADB-sponsored procurement seminars and other procurement training will provide this needed experience. 28. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines. 29. International competitive bidding procedures will be used for supply and turnkey contracts12 estimated to cost $10 million or more, and supply contracts valued at $500,000 or higher. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000.13
10
Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf 11
Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf 12
Including erection and testing. 13
The HPPTCL website (www.hpptcl.gov.in) will contain links regarding procurement and other project related matters.
13
30. National competitive bidding may also be used for certain computer or other equipment that may be purchased from the capacity development portion of loans. Before the start of any such procurement, ADB and the Government will review the public procurement laws of the central and state governments to ensure consistency with ADB’s Procurement Guidelines. 31. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C. 32. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants.14 The terms of reference for all consulting services are detailed in Section D. 33. Consulting services to be funded under the MFF will include the hiring of an Enterprise Resource Management (ERP) System Specialist. This consultant will conduct a needs assessment of HPPTCL in order to specify the appropriate computerized management information system to meet HPPTCL’s needs. Additional consultants are expected to include a project planning engineer and project design engineer to assist in project implementation. Also expected is a financial specialist consultant to assist in loan disbursement and other financial management matters. These are national consultant positions. An estimated 43 person-months of consulting services are required. 34. Consulting services to be funded under the piggy-back technical assistance for future tranche preparation and to facilitate project management and implementation will be addressed separately under the TA documentation. If a consulting firm is to be engaged, the EA will use the quality- and cost-based selection (QCBS) method with a standard quality:cost ratio of 80:20. C. Procurement Plan (Tranche 1)
Basic Data
Project Name: Himachal Pradesh Clean Energy Transmission Investment Program – Tranche 1 Country: INDIA Executing Agency: HPPTCL Loan Amount: $ 113.0 million Loan Number: Tranche 1 Date of First Procurement Plan: 18 May 2011 Date of this Procurement Plan: 17 August
2011
I. Process Thresholds, Review and 18-Month Procurement Plan
1. Project Procurement Thresholds
35. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.
Procurement of Goods and Works
Method Threshold
International Competitive Bidding (ICB) for Works $10,000,000 and more International Competitive Bidding for Goods $1,000,000 and more National Competitive Bidding (NCB) for Works Less than $10,000,000
14
Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/
14
National Competitive Bidding for Goods Less than $1,000,000 Shopping for Works Less than $100,000 Shopping for Goods Less than $100,000
2. ADB Prior or Post Review
36. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.
Procurement Method
Prior or Post Comments
Procurement of Goods and Works
ICB Works Prior
ICB Goods Prior
NCB Works Prior
NCB Goods Prior Shopping for Works Prior
Shopping for Goods Prior
Recruitment of Individual Consultants
Individual Consultants Prior
3. Goods and Works Contracts Estimated to Cost More Than $1 Million
37. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
General Description Contract
Value ($million)
Procurement Method
Prequalification of Bidders (y/n)
Advertisement Date
(quarter/year) Comments
220/66 kV GIS Pooling Station Bhoktoo in District Kinnaur
9.6
ICB (Plant)
No
18 April 2011
(Actual)
To be
retroactively financed by
ADB.
400/220 kV GIS Pooling Station Gumma in Kotkhai, District Shimla
25.7
ICB (Plant)
No
30 August 2011
(Expected)
Financed by
ADB
400/220/66 kV GIS Pooling Station near Wangtoo, District Kinnaur
45.8
ICB (Plant)
No
30 September
2011 (Expected)
Financed by
ADB
220 kV Hatkoti-
10.4
ICB (Plant)
No
15 September
Financed by
15
Gumma (Kotkhai) Transmission Line in District Shimla
2011 (Expected)
ADB
4. Consulting Services Contracts Estimated to Cost More Than $100,000
38. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
General Description
Contract Value
Recruitment Method1
Advertisement Date
(quarter/year)
International or National Assignment Comments
None
5. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000
39. The following table groups smaller-value goods, works and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.
General Description
Value of Contracts
(cumulative)
Number of Contracts
Procurement / Recruitment
Method Comments
Computer and IT Equipment
$4.0 Million various ICB/NCB/ Shopping
Financed by ADB
ERP System Specialist $50,000 One Individual Financed by ADB
Project Planning Engineer
$50,000 One Individual Financed by ADB
Project Implementation Engineer
$50,000 One Individual Financed by ADB
Financial Management Specialist
$50,000 One Individual Financed by ADB
II. Indicative List of Packages Required Under the Project 40. The following table provides an indicative list of all procurement (goods, works and consulting services) over the life of the project. Contracts financed by the Borrower and others should also be indicated, with an appropriate notation in the comments section.
General Description Estimated
Value (cumulative)
Estimated Number of Contracts
Procurement Method
Domestic Preference Applicable
Comments
Transmission System Investment
220/66 kV GIS Bhoktoo Substation
$9.6 Million 1 ICB No
400/220 kV GIS Gumma $25.7 Million 1 ICB No
16
Substation 400/220/66 kV GIS Wantoo Substation
$45.8 Million 1 ICB No
220 kV Hatkoti-Gumma Transmission Line
$10.4 Million 1 ICB No
Capacity Development Equipment Packages
Computerized Enterprise Resource Planning solution
$3.5 Million 1 ICB No
Additional Computer and engineering design equipment
$0.5 Million various ICB/NCB/Shopping No
General Description Estimated
Value (cumulative)
Estimated Number of Contracts
Procurement Method
Type of Proposal
Comments
Individual Consultants $200,000 4 Individual -
D. Consultant's Terms of Reference
41. A detailed terms of reference (TOR) for the ERP specialist consultant and the other consultants are shown in attachment 1.
17
VII. SAFEGUARDS
42. Environment Aspects. HPPTCL will ensure that the projects under the MFF are undertaken and that all project facilities are designed, implemented, operated, and maintained in accordance with all applicable laws and regulations of the Government and GOHP, ADB’s Safeguard Policy Statement (2009), and the Environment assessment and review framework (EARF). For each project, HPPTCL will prepare and implement the necessary initial environmental examination (IEE) or environmental impact assessment (EIA), and environmental management plan (EMP) (with budget) in accordance with the EARF. For projects, the environmental categorization and assessment procedures defined in the EARF will be followed. 43. For any environment category A, an EIA will be prepared and made available to the public 120 days before management consideration of a PFR for approval. HPPTCL would monitor, audit, and report to ADB twice a year on implementation of the EMPs for each project. GOHP will ensure that all associated projects will be constructed and commissioned in compliance with the laws and regulations of the Government. 44. For all tranches, HPPCL will ensure that necessary environmental clearances are obtained from the applicable statutory authorities of the Government. Environmental mitigation measures set forth in the site-specific environmental management plans (EMPs) for each project are incorporated in detailed designs (including any amendments to detailed designs) and followed during construction and operation of the subprojects. HPPTCL will monitor, audit, and report twice annually to ADB the implementation of tranche-specific EMPs. 45. Adequate provisions will be made in the Program to cover the environmental mitigation and monitoring requirements, and their associated costs. The civil works contracts will incorporate mitigation measures related to construction as specified in the EMPs. Implementation of construction mitigation measures will be the contractor’s primary responsibility, and the IA will be responsible for implementing tranche-specific EMPs. The principal impacts are to be described in the tranche specific EMPs along with specific mitigation measures. 46. Social Safeguards. Required land for subprojects must be identified and acquisition procedures followed following the Land Acquisition Act, the national policy on resettlement and rehabilitation15, ADB's Safeguard Policy Statement (2009), and to the resettlement framework (RF) and the indigenous peoples planning framework (IPPF). If impacts on indigenous peoples are identified, mitigation will be undertaken commensurate with the magnitude of project impacts and sensitivity levels. This will be done through preparation of an Indigenous Peoples Development Plan (IPDP) (if required), or integration of specific sections in favor of the indigenous people in the resettlement plan, based on ADB’s Safeguard Policy Statement (2009). Resettlement Plans for each tranche will detail the required actions, responsible parties and resources required to implement the actions identified, and will be posted on ADB's website.
15
Government of India. 2007. The National Rehabilitation and Resettlement Policy of 2007. New Delhi.
18
VIII. GENDER AND SOCIAL DIMENSIONS
47. There are no significant impacts on gender (either positive or negative) associated with this project. However, regarding gender issues, a measure taken is that the loan agreements include a standard assurance related to core labor standards for contractors, including gender equal pay for equal work, an awareness program on HIV and sexually transmitted diseases and human trafficking. This is also specified in the summary poverty reduction and social strategy (SPRSS) report which is a linked document to the RRP.
19
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION
A. Program Design and Monitoring Framework
Design Summary Performance Targets and Indicators with Baselines
Data Sources and Reporting Mechanisms
Assumptions and Risks
Impact Assumptions Himachal Pradesh power sector transmits clean energy to end users in HP and India.
In 2022:
GOHP remains committed to power sector reforms, institutional improvement, and the state’s Hydropower Policy, 2006.
Timely progression of generation expansion in HP by central, state and private sectors.
Increased self reliance on in-state sourced power supply by 15% (Baseline = 3,316 GWh in FY2009)
a
HPERC tariff orders
Increased interstate power exports by 15% (Baseline = 1,498 GWh)
Outcome Assumptions HPPTL has sufficient assets and capacity to support its mandate as the state transmission utility company.
In 2017: 2,281 MVA (12,052 MW) of additional transmission substation capacity (Baseline = 2,338 MVA existing capacity) New transmission lines enabling 1,487 MW of additional capacity (Baseline = 0 MW)
HPPTCL annual reports [Secondary source: HPERC tariff orders].
Timely conclusion of setting applicable transmission tariffs incorporating the project investments. GOHP sanctions additional staffing for HPPTCL in a timely manner.
Required reports submitted to GOHP and HPERC on time.
HPPTCL reports
Outputs Assumptions 1. New Transmission
system assets are operational
Commissioning of 5 transmission lines totaling about 125 km by 2017
220 kV line from Hatkoti to Pragati Nagar
220 kV line from Sunda to Hatkoti
400 kV line from Lahal to Chamera
220 kV line from Naggar to Banala
66 kV line from Kilba to Wangtoo
HPPTCL annual reports. [Secondary sources: HPERC reports and tariff orders.]
Prices of raw materials and equipment do not exceed contingency allocations
Risks
Delays in land acquisition process for transmission towers
Commissioning of 10 substations by 2017
220/400 kV GISS near Pragati Nagar
66/220/400 kV GISS at Wangtoo
66/220 kV GISS at Bhoktoo
20
Design Summary Performance Targets and Indicators with Baselines
Data Sources and Reporting Mechanisms
Assumptions and Risks
132/220 kV GISS at Naggar
33/220 kV GISS at Lahal
66/22 kV GISS at Kilba
132/220 kV GISS at Sunda
220 kV Switching station at Hatkoti
220/400 kV GISS at Lahal
33/220 kV GISS at Naggar
Commissioning of 1 220/400 kV, 315 MVA transformer at Gumma by 2017
2. HPPTCL’s management capacity enhanced
ERP system installed at HPPTCL offices. HPPTCL staff trained on its use Financial and accounting reports are prepared on time
ERP Implementation consultant reports HPPTCL reports
Assumptions 3. HPPTCL manages
implementation of the MFF tranches on time and within budget.
Tranche 2 and 3 PFRs completed and submitted to ADB as scheduled Timely loan disbursement and reporting
Submitted PFRs and ADB approval documents
Loan disbursement data submitted implementation reports Safeguards compliance reports
Government continues to support capacity development Executing Agency staff assumes ownership of the capacity development programs
Capacity building activities
completed
HPPTCL reports Consultant contract documentation
Activities with Milestones Inputs 1A. Tranche 1 Investments
1.1 Completion of detailed project reports: March 2011 1.2 Commencement of Land acquisition for substations: February 2011. 1.3 Completion, endorsement and public disclosure of resettlement framework, indigenous peoples development framework, and environmental assessment and review framework: June 2011 1.4 Completion of environment and social safeguards work: July 2011 1.5 Commencement of procurement activities: Beginning April 2011. 1.6 Commencement of Contract awards: September 2011. 1.7 Commencement of construction: November 2011.
ADB:
Item Amount ($ million)
Loans 350.0
Government:
Item Amount ($ million)
Counterpart Funds 87.9
21
Activities with Milestones Inputs
1B. Tranche 1 Capacity Development (Loan financed)
1.8 Commencement of consultant selection process: October 2011 1.9 Consultant hiring: November 2011 – March 2012 1.10 Consultant mobilization: Dec. 2011–April 2012 1.11 HPPTCL needs assessment completed and ERP
specifications finalized by December 2012. 1.12 ERP bidding documents issued by March 2013. 1.13 Completion of services: December 2017
2. Capacity Development (TA financed)
2.1 Commencement of consulting selection process: November 2011.
2.2 Consultant hiring: December 2011-March 2012. 2.3 Future tranche preparation begins: January 2012. 2.4 Transmission planning update work: January 2013. 2.5 Completion of services: December 2016.
3. Tranche 2 Investments
3.1 Completion of detailed project reports and commencement of land acquisition : December 2011 3.2 Completion of environment and social safeguards work: June 2012 3.3 Commencement of Contract awards: March 2012. 3.4 Commencement of construction: November 2012.
4. Tranche 3 Investments
4.1 Completion of detailed project reports and commencement of land acquisition : December 2012 4.2 Completion of environment and social safeguards work: June 2013 4.3 Commencement of Contract awards: March 2013. 4.4 Commencement of construction: November 2013.
Technical Assistance Grant
ADB: $600,000
Item Amount ($ million)
TA Grant $0.600
Government:
Item Amount ($ million)
Counterpart TA Funds b 0.050
ADB = Asian Development Bank; ERP = enterprise resource planning; GISS = gas insulated switchgear substation; GOHP = Government of Himachal Pradesh; HP = Himachal Pradesh; HPERC = Himachal Pradesh Electricity Regulatory Commission; HPPCL = Himachal Pradesh Power Corporation Ltd.; HPPTCL = H.P. Power Transmission Corporation Ltd.; kV = kilovolt; MFF = multitranche financing facility; MVA = megavolt-ampere; MW = mega-watts; PFR = periodic financing request; TA = technical assistance. a Consists of own generation of 1,967 GWh, plus free and equity power of 1,078 GWh, plus 271 GWh from private
micro projects. b This is an in kind contribution of $50,000 by GOHP by providing office accommodation, support facilities,
counterpart staff, maps, reports and other logistical support. Source: Asian Development Bank estimates.
B. Monitoring
48. A loan inception mission for each tranche of the Facility will ensure that all administrative matters pertaining to each subproject are properly in place and working relationships are established between concerned ADB staff and HPPTCL staff. Details relating to report requirements, accounting system, compliance with loan covenants, disbursement procedures and withdrawal applications will be clarified at this time. 49. Project performance monitoring. The quarterly progress reports to be prepared by HPPTCL and submitted to ADB within 30 days of the end of each quarter will include
22
information on implementation progress, contracting and disbursement figures, as well as compliance matters. These quarterly reports will provide information necessary to update ADB's project performance reporting system.16 Progress on project outputs will be reported, as well as progress on the performance target indicators as listed in the DMF for each respective tranche of the Facility. Third party reports such as tariff orders, utility company annual reports, and other government reports covering the energy sector can also provide information on progress of certain performance target indicators as listed in the DMF. 50. Compliance monitoring: The quarterly reports will cover compliance matters related to loan covenants. Review missions will review and discuss compliance matters with the EA, including any adjustments to the compliance reporting process or for corrective actions, if required. 51. Safeguards monitoring: The quarterly reports will also include sections on the monitoring of environment and social safeguards matters. For all environment category A projects, if any, a progress report on implementation of the relevant EMPs is required semiannually. C. Evaluation
52. ADB will field regular review missions every 6 months to review the status of contract awards, disbursements, physical progress, and implementation of the environmental management plans and resettlement plans. Within 6 months of physical completion of the Project the executing agency will submit a project completion report to ADB.17 D. Reporting
53. The executing agency will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the executing agency AFSs, together with the associated auditor's report, should be adequately reviewed. E. Stakeholder Communication Strategy
54. During the preparatory stages of each tranche under the Facility, consultations will be carried out with relevant stakeholders and government officials concerned in accordance with ADB’s Safeguards Policy Statement, 2009.. 55. The Stakeholder Communications Strategy is described in the following table.
Table: Stakeholder Communication Strategy
Project information to be communicated
Means of Communication
Responsibility Audience Frequency
16
ADB's project performance reporting system is available at: http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool
17 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector-Landscape.rar
23
Report and Recommendation of the President (RRP) with linked documents
ADB website ADB ADB, GOI, GOHP, Development Partners, Civil Society, Individuals
Once
Project information while planning/ designing
Discussions and stakeholder consultations
ADB/HPPTCL Project stakeholders and beneficiaries
Regular intervals during planning and design
Status of implementation during construction
Reports HPPTCL/ Contractors/ Consultants
ADB, GOI, GOHP, Development Partners, Civil Society, Individuals
Every quarter
Project Performance Reports and Project Information Documents
ADB website ADB ADB, GOI, GOHP, Development Partners, Civil Society, Individuals
Every quarter
Project completion report
ADB website ADB ADB, GOI, GOHP, Development Partners, Civil Society, Individuals
Once
ADB = Asian Development Bank; GOHP = Government of Himachal Pradesh; GOI = Government of India; HPPTCL = H.P. Power Transmission Corporation Ltd.
X. ANTICORRUPTION POLICY
56. The Government, the State, and the EA 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 each tranche under the Facility shall adhere to ADB’s Anticorruption Policy. ADB reserves the right to review and examine, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the each tranche under the Facility. In this regard, investigation of Government officials, if any, would be requested by ADB to be undertaken by the Government. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the Loan Regulations and the bidding documents. In particular, all contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA and all contractors, suppliers, consultants, and other service providers as they relate to the Project. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project(s).18 57. HPPTCL shall announce the Investment Program and business opportunities associated with the Investment Program on its website. In addition, the website shall at least disclose the following information in relation to works, goods and services procured for the Investment Program: (i) the list of participating bidders, (ii) the name of the winning bidder, (iii) the amount of the contracts awarded, and (iv) the goods and services procured; 58. HPPTCL, through the PMU and through independent auditors, shall conduct periodic inspections and random spot checks of contractors’ activities related to fund withdrawals and settlements.
18
ADB’s Integrity Office website is available at: http://www.adb.org/integrity/unit.asp
24
XI. ACCOUNTABILITY MECHANISM
59. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.19
19
For further information see: http://compliance.adb.org/.
25
XII. RECORD OF FAM CHANGES
60. All revisions/updates during course of implementation should retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the FAM.
26
Attachment 1
OUTLINE TERMS OF REFERENCE Introduction: 1. The HP Power Transmission Corporation Limited (HPPTCL), a Corporation promoted by the Government of Himachal Pradesh, is the executing agency (EA) and implementation agency (IA) for the Himachal Pradesh Clean Energy Transmission Investment Program (HPCETIP). HPPTCL is the State Transmission Utility (STU) resulting from the restructuring of the erstwhile Himachal Pradesh State Electricity Board as mandated by the Electricity Act, 2003 of the Government of India. HPPTCL is engaged in the planning, construction and operation of transmission lines and substations in Himachal Pradesh, India. HPPTCL has established a Project Management Unit (PMU) to implement the HPCETIP. 2. The Government of India/Government of Himachal Pradesh has applied for a loan from the Asian Development Bank (ADB) towards part construction cost of various transmission system investments. The proposed loan is being processed by ADB under Multi-tranche Financing Facility (MFF) for a total amount of US$350 million. Proposed Consulting Positions: 3. The composition of the national experts along with their estimated person months (intermittent during 4 year period) is shown in the table below:
Consultants Team Composition
A. Consultants No. of Experts Total P-M
1. Project Planning Engineer 1 National 12
2. Project Implementation Engineer 1 National 12
3. Financial Management Specialist 1 National 12
4. ERP System Specialist 1 National 7
Total 4 43
Terms of Reference (Indicative): a. Project Planning Engineer 4. The Project Planning Engineer must have at least a Bachelor’s degree in Electrical/Electronics Engineering with wide exposure in high voltage transmission and transformation system and having 10 years of working experience in planning and design of transmission and transformation projects preferably in hilly terrain and climatic conditions similar to Himachal Pradesh. He should preferably have working knowledge of computer aided software for checking and design calculations. 5. Scope of Work: Coordination: (i) Assist PMU in monitoring, supervising, coordinating overall activities for ADB funded
projects;
27
Planning
(ii) Assist PMU in providing guidance to Transmission divisional staff and contractor in project implementation and provide guidance to the contractors so as to conform to the specifications;
(iii) Identify any problem during project implementation, propose remedial actions and promptly report any outstanding issues to PMU;
(iv) Conduct site visits and identify technical problems and advice remedial technical solutions;
(v) Advise PMU on any contractual or technical disputes that may arise between contractor and HPPTCL during the implementation phase;
Design (vi) Checking for transmission line tower, structures, civil buildings, foundations related to
transmission lines and substations subprojects. Provide recommendation for approval of all civil, structural designs and drawings pertaining to transmission lines and substations.
Monitoring, Disbursement and Reporting
(vii) Preparing overall disbursement plan, monitoring cost and project accounts;
(viii) Undertake project monitoring and evaluation during the project implementation; and,
(ix) Provide input on the field of responsibility to required monthly, quarterly progress reports and other reports as may be required.
b. Project Implementation Engineer 6. The Project Implementation Engineer must have at least a Bachelor’s degree in Electrical/Electronics Engineering having wide experience in erection of super structures (towers), sub-station erection including control room buildings, their foundations and allied civil works. He should have minimum 10 years of experience in construction of large construction work and at least 5 years of experience in transmission line related projects; preferably on externally aided projects. of similar nature in managing and monitoring. He should also have substantial work experience in similar geographical, climatic and cultural conditions as that of EA’s state. 7. Scope of Work: Contract Management: (i) Assist and work hand in hand with the PMU in management of the contracts for civil
works, plant and equipment. Advice on quality control programs, checking of design details of the structures and civil construction (submitted by contractors) and speedily advising on acceptability of such designs and suggesting corrective measures to be undertaken in the field.
(ii) Supervise the construction of the project transmission networks in transmission divisions and provide guidance to the contractors so as to conform to the specifications and identify any problem during project implementation, propose remedial actions;
Project Scheduling and Monitoring
28
(iii) Review project schedules submitted by the contractors, analyze progress and suggest corrective measures at management level.
(iv) Conduct site visits and identify technical problems and advice remedial technical solutions;
Monitoring and Reporting, Project Disbursement: (v) Review compliance with ADB safeguard issues and standard operating procedures by
the contractors during the construction period as well as the operations period. (vi) Also, Quarterly updating and comparative reporting on overall project disbursement and
advising PMU on rescheduling of budget against subprojects.
c. Financial Management Specialist 8. The consultant should be a CA / ICWA / MBA(Finance) with at least 5 years experience in the reputed field. The consultant will support project implementation by assisting the PMU to ensure timely management of all financial reporting related requirements under the ADB loan or for other purposes. 9. Scope of Work: (i) Guide and assist PMU and in the ADB loan disbursement process, and the following
including - Funds Management, Banking Operations, Payments and reconciliation.
(ii) Preparing withdrawal applications for loan disbursements to contractors based on submitted contractor invoices
(iii) If applicable, Statement of Expenditure (SOE) and/or imprest account procedures, including proper record keeping for reimbursements.
(iv) Impart training to PMU accounts staff with regard to ADB financial management and disbursement guidelines, book keeping and payment systems;
(v) Guide and assist PMU in maintaining separate accounts for projects and/or contracts for ADB funded projects viz. accounting books, documents, records, bank accounts, financial statements etc. These may be consolidated on prescribed formats for appraisal or update for ADB, HPPTCL and Auditing agencies as per guidelines of ADB;
(vi) Assist in preparation of the reply to the internal and/or external Audit of all ADB Projects as per guidelines;
(vii) Periodical reporting of project financial matters, including disbursements and disbursement projections, for ADB reporting purposes.
(viii) Provide feedback to the Project Design Engineer on any project progress matters including finance and reimbursements as deemed necessary.
d. Enterprise Resource Planning (ERP) System Specialist 10. The objective of this assignment is to engage a consultant who will be associated with the HPPTCL, right from conceptualization till its technical and financial closure for Enterprise Resource Planning (ERP) based Information Technology (IT) solution. All back office processes like Financial Management and accountability, Asset Management, Human Resource
29
Management, Inventory Management, Equipment and Material Procurement, Project monitoring etc., would be integrated through the Enterprise Resource Planning (ERP) package. 11. The consultant is required to study the feasibility of the ERP solution, workout infrastructure requirements, prepare budgetary estimates, functionality requirements specification (FRS), request for proposal (RFP) and provide assistance in selection and evaluation of a Implementation Partner for the ERP project and assist during implementation, technical and financial closure of the project. 12. The consultant should have experience in providing consultancy for packaged solution implementation like ERP, Business Process Reengineering to reputed organizations/ Government / PSU’s . The consultant should be capable of taking the services /associating with him financial specialist from reputed management organization in order to conduct financial management and accountability study to improve accounting and auditing systems. The consultant should have worked as Consultant in at least 5 ERP projects in Government or Public Sector Undertakings out of which at least one should be in power sector with the work of preparing Feasibility Report, RFP document and Technical Evaluation of ERP solution and its Implementation Partner Selection. 13. Scope of Work: The broad scope work shall cover the following activities, phased into 3 distinct components:-
1. Pre- implementation - preparation of road map and RFP and selection of ERP partner. 2. Implementation- change management, implementation monitoring etc.: 3. Post Implementation – post implementation audit, Financial and technical Closure etc.
The consultant is also free to suggest any alternatives/changes to meet the objectives better, provided that such deviations are properly justified and implemented in an optimal manner.
Phase-1:Pre- implementation - preparation of road map and RFP and selection of ERP partner. (i) To prepare best suited IT Roadmap and ERP implementation project plan including the
strategy before buying and installing ERP system as per approved budgetary plan.
(ii) To prepare a Detailed Feasibility Report covering the scope of work, budgetary estimate, Information System architecture, documentation and work flow etc.
(iii) To conduct Presentations & Workshops for building common vision and understanding of ERP system and best business practices.
(iv) To make projection of servers, hardware, network equipments and other requirements such as Data Center, network infrastructure for effective implementation of ERP.
(v) To assist in re-engineering and identifying obsolete functions in the organization - oriented management practices and to recommend for ERP based process or change / customize ERP.
(vi) To prepare Functionality Requirements Specification (FRS) for business functions such as Finance, Human resources, inventory, Equipment and Material Procurements and project management including Functionality Matrix.
(vii) To prepare tender document i.e. Request for Proposal (RFP)/ NIT document for selection of ERP product and Implementation Partner and required hardware. This should cover the scope of work, technical & functional requirements of the ERP system
30
as well as the commercial, contractual terms and conditions etc. The RFP will also include the draft contract for the project.
(viii) To prepare an evaluation criteria for the selection of the ERP product and its Implementation Partner.
(ix) To assist in framing replies to pre-bid queries and preparation & finalization of pre-bid minutes of meeting.
(x) To assist in technical evaluation for selection of ERP product and Implementation Partner. The consultant will provide all necessary assistance during the technical evaluation of tenders in selecting the technically qualified vendor. This would include assisting HPPCL in short-listing of qualified bidders, evaluation of technical proposals, evaluation of financial proposals, and determination of final ranking of proposals and recommending selection of the ERP vendor and Implementation Partner and hardware to HPPCL.
(xi) To facilitate submission of the draft documents and evaluation of results to ADB for review and approval
(xii) To assist in finalizing award and signing of Contract Agreement
(xiii) To carry out other relevant tasks as may be requested for achieving the objective of assignment.
Phase II: Implementation -change management, implementation monitoring etc.:
(xiv) To prepare critical examination and review of project management plan submitted by
ERP implementation vendor and assist in project implementation management.
(xv) To guide the organization in implementation task and facilitate the overall implementation process and help in setting up the expectation of users at various levels.
(xvi) To assist in Preparing Implementation Approach and Review of Progress
(xvii) To assist in identifying skill required, top management roll, project team roll, key project deliverable milestone and activities working along with ERP implementation vendor.
(xviii) To prepare Review of Blue Print document prepared by ERP vendor
(xix) To conduct workshop on ERP for Senior Management (two workshop of half day each).
(xx) To review the training need proposed by ERP vendor for all level of management.
(xxi) To assist in vetting of documents on specification of servers and data center related IT infrastructure prepared by ERP vendor for ERP project.
(xxii) To participating in Steering committee meetings in reviewing the progress especially on technical issues.
(xxiii) To vet the test script documents prepared by ERP vendor as well as integration test for Go-Live preparedness.
(xxiv) To review of the change management plan prepared by ERP vendor.
(xxv) To review of Go-Live parameters.
Phase III: Post Implementation – post implementation audit, Financial and Technical Closure etc.
31
(xxvi) To prepare road map for post implementation management of ERP solutions
(xxvii) To assist in financial and technical closure
(xxviii) To audit of ERP implementation.
