Project Number: 45320-001 October 2012 (Draft)

Grant Assistance Republic of the Philippines: Promoting Partnerships and Innovation in Poor and Underserved Communities (Financed by the Japan Fund for Poverty Reduction)

Asian Development Bank

Grant Implementation Manual___________________

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TABLE OF CONTENTS Page LIST OF ADDRESSES AND PERSONNEL CONCERNED (iii) CURRENCY EQUIVALENTS (iv) ABBREVIATIONS (iv) GRANT PROCESSING HISTORY (vi)

I. GRANT DESCRIPTION 1 A. Grant Area and Location 1 B. Grant Objectives 1 C. Grant Components 1

II. COST ESTIMATES, FINANCING PLAN & ALLOCATION OF LOAN 5 PROCEEDS

A. Cost Estimates by Component 5 B. Financing Plan 6 C. Allocation of Grant Proceeds 6

III. IMPLEMENTATION ARRANGEMENTS 7 A. The Executing Agency and Implementing Agency 7 B. Grant Organization and Management 7

C. Japanese Visibility and Coordination with Embassy of Japan 8 and JICA

IV. IMPLEMENTATION SCHEDULE 10 V. PROCUREMENT 10

A. Works and Goods 10 B. Consulting Services 10

VI DISBURSEMENT PROCEDURES 10 A. Imprest Fund Procedure 10 B. Direct Payment Procedure 11 C. Statement of Expenditures 11

VII. REPORTING REQUIREMENTS 14 A. Grant Status Report for OCO 14 B. Progress Reports 14

C. Audited Grant Accounts 14 D. Benefit Monitoring Evaluation Report 14 E. Implementation Completion Memorandum (ICM) 15 VIII. GRANT MONITORING AND EVALUATION 15 A Contract Awards/Commitments and Disbursement Projections 15

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B. Grant Reviews 15

C. Mid-term Review 15 D. Project Completion 15

IX. MAJOR COVENANTS 16 APPENDIXES 1. Design and Monitoring Framework 17 2. Summary and Detailed Cost Estimates 20 3. Project Organization Chart 25 4. Implementation Schedule 26 5. Guidance Note on Visibility of Japan and Coordination with the 27

Embassy of Japan 6. Procurement Plan 32 7. Procurement Procedures for Goods 36 8. Selection and Engagement Procedures for Consultancy Services 46 9. Details of Required Consulting Services and Outline Terms of Reference 51 10. Disbursements 59 11. Small Projects with Community Participation 70 12. Consultation and Participation Plan 73 13. Guidelines for the Preparation of Progress Reports and Calculating 76

Project Progress 14. JFPR Implementation and Completion Memorandum 93 15. Links to Relevant Project Administration Documents 99 16. Letter of Agreement 100 17. Grant Covenants 104

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LIST OF ADDRESSES AND PERSONNEL CONCERNED

A. Asian Development Bank Southeast Asia Department Human and Social Development Division 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines

Telephone: (632) 636 1567 Facsimile: (632) 632 2228

Division Director: Leah C. Gutierrez lcgutierrez@adb.org Project Implementation Specialist: Mr. Joel Mangahas

jmangahas@adb.org Project Analyst: Ms. Ruchel Marie Grace R. Roque-Villaroman

rmgroque@adb.org Financial Control Specialist: Mr. Yasumitsu Hirao

Financial Control Specialist Tel. (632) 636 2444 Fax: (632) 632 6790 yhirao@adb.org

B. ADB Philippine Country Office

Mr. Neeraj Jain Country Director, PhCO njain@adb.org

Fax: (632) 683 1030 C. Executing Agency

Chito M. Cruz National Housing Authority Office of the President Quezon Memorial Elliptical Road Diliman, Quezon City Telephone: (632) 928 4561 to 66 Fax.: (632) 922 2058 www.nha.gov.ph

D. Implementing Agency Regina Paz Lopez ABS-CBN Foundation, Inc. (AFI)

Mother Ignacia Corner, E. Lopez Drive 1103 Quezon City, Philippines Telephone: (632) 4152272 loc. 3796 Fax: (632) 415 6308

www.abs-cbnfoundation.com

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CURRENCY EQUIVALENTS (as of 30 November 2012)

Currency Unit - peso (P) P1.00 = $0.02469 $1.00 = P40.50

ABBREVIATIONS

ADB – Asian Development Bank AFI – ABS-CBN Foundation, Inc. CAF – Community Assistance Fund CBO – Community-Based Organization CDD – Community-Driven Development CDP - Community Development Plan CIF – Community Innovation Fund CSRN - Consulting Services Recruitment Notice DC - Direct Contracting DMF - Design and Monitoring Framework DP - Direct Payment DOE - Department of Energy DSWD – Department of Social Welfare and Development EA - Executing Agency EOI - Expression of Interest EoJ - Embassy of Japan e-trikes – Electric tricycles FBS - Fixed Budget Selection GAR - Grant Assistance Report GIM – Grant Implementation Manual GOJ - Government of Japan GOP - Government of the Philippines GSR - Grant Status Report HOA – Homeowners’ Association IA - Implementing Agency ICM - Implementation Completion Memorandum IF - Imprest Fund JICA - Japan International Cooperation Agency JFPR – Japan Fund for Poverty Reduction LAC - Livelihood Assistance Committee LCS - Least Cost Selection LDF - Livelihood Development Fund LGU – Local Government Unit LoA - Letter of Agreement MC - Management Committee MERALCO - Manila Electric Company NGO – Nongovernment organization NHA – National Housing Authority O&M – Operation and Maintenance OCO - Office of Co-financing Operations ODA - Official Development Assistance PAI - Project Administration Instruction PCR - Project Completion Report

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PDP – Philippine Development Plan PIU – Project Implementation Unit PPP – Public–Private Partnership

PPR - Project Performance Report PSC - Project Steering Committee RFP - Request for Proposal SHP - Shopping SOE - Statement of Expenditure TA - Technical Assistance TESDA - Technical Education and Skills Development Authority WA - Withdrawal Application

NOTES

(i) The fiscal year (FY) of Government of the Philippines ends on 31 December.

IN THIS REPORT, "$" REFERS TO US DOLLARS.

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GRANT PROCESSING HISTORY Grant Fact Finding Mission – September 7- 20, 2011 Staff Review Committee Meeting – October 3, 2011 Submission of Grant Proposal – November 10, 2011 Government of Japan Approval – February 10, 2012 ADB Board Circulation – April 9, 2012 ADB Board Approval – April 12, 2012 JFPR Letter of Agreement Signing – May 22, 2012 Grant Effectiveness – May 22, 2012 Grant Closing Date – May 22, 2015 ( 3 years)

May 21, 2015 is the closing date for withdrawals from the grant account. Goods must have been delivered and services rendered on or before this date to be eligible for payment by the ADB. No payments from the grant can be made after the grant closing date. The grant account may still be kept open up to three months beyond the closing date in order allow the executing agency time to collect and submit documentation and invoices pertaining to expenditure incurred before the closing date.

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I. GRANT DESCRIPTION

A. Grant Area and Location 1. The Grant will be implemented in Southville 7, Barangay Dayap, Calauan, Laguna. Southville 7 is one of eight low-cost housing projects/resettlement sites of the National Housing Authority (NHA) located in the province of Laguna. Until 2009, the NHA did not plan to admit additional families to the resettlement site until it was obliged to accommodate a huge number of typhoon Ondoy victims. Through a focused partnership framework, the grant aims to improve the access of 5,896 poor families in sites 1, 2 and 3 to basic services and livelihood opportunities. Southville 7 is managed and operated by the ABS CBN Foundation (AFI) under a memorandum of agreement with the NHA and its current initiatives represent an innovative approach to expanding multi-sectoral partnerships in building and empowering communities, enhancing service delivery and improving the living conditions of the poor. The location map is found in below.

Pansol

San Pedro

Sta.Tomas Batangas

Binan

Cabuyao

Laguna de Bay

Sta.Rosa

TalagaTalisay

TaalLake

Canlubang

Los Banos

San Pablo

Bay

CalauanNagcarlan

Victoria

Sta. Cruz

AyaBalas .Mt. Makiling

Calamba

Niugan

Taal Lake

Southville 1ResettlementProject

AlabangInterchange

LOCATED IN * Bgy. Dayap, Calauan, Laguna

* 77 kilometers south of Manila * along the national and provincial roads * 4 kilometers from Calauan town proper * 11 km to UP-Los Banos

Bgy. Dayap, Calauan, LagunaSouthville 7 Resettlement Project

B. Grant Objectives 2. The grant development objective is to pilot a viable model for strengthening strategic multi-sectoral partnerships to support the sustainable development of poor and underserved communities that can be replicated in the Philippines and other developing member countries of the Asian Development Bank (ADB). The development objective will be achieved by: (i) piloting a program for expanding multi-sectoral partnerships; (ii) implementing a community development and innovation program; (iii) enhancing capacities of residents in community development and social entrepreneurship; and (iv) establishing an effective project management, monitoring and evaluation, and reporting system. C. Grant Components

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Component A. Program for Expanding Multi-Sectoral Partnerships ($ 59,800) 3. This component will implement a program for enhancing multi-sectoral partnerships to improve access of the poor to good quality and affordable basic services. It seeks to expand the resources provided to Southville 7 generated from the government, private sector, and civil society. Dialogues and Focus Group Discussions will be held to identify multi-sectoral partners and volunteers and to clarify role expectations and deliverables, culminating in the signing of a covenant with ABS-CBN Foundation, Inc. (AFI) confirming funding commitments and contributions in-kind to Southville 7. An institutional framework and business plan will be prepared and implemented to expand and sustain partnerships. Capacity development activities on public-private partnerships (PPP) and leadership will be conducted for the staff of the AFI, NHA and the local government of Calauan and a PPP toolkit will be developed to assist in project preparation and implementation. Policies and implementing guidelines for PPPs will be established and a feasibility study for a pilot PPP project will be prepared and implemented. An assessment of the status of existing infrastructure, needs and gaps in community services and facilities, livelihood programs, education and health and sanitation will be performed and will be used as inputs to the preparation of the Community Development Plan which is expected to be included in the municipal plan and annual investment program of the local government of Calauan. 4. Monitorable Deliverables/Outputs will include the following: (i) Integration of Southville 7 Community Development Pan in the municipal development plan and the annual investment program of Calauan by the first quarter of 2013; (ii) Preparation and implementation of a PPP pilot project by the third quarter of 2013; (iii) Increase in financial resources and contributions in-kind provided to Southville 7 from different stakeholder groups by at least 25% in the second quarter of 2015 from the project baseline in 2012. Component B. Community Development and Innovation Program ($ 885,970) 5. This component will promote community development and innovation while enhancing the self-help capacities of residents through the support of two funds. These are: the Community Assistance Fund (CAF) and the Community Innovation Fund (CIF). The CAF will respond to evident and immediate needs of the community such as electricity, water, and other basic infrastructure and is envisaged to be provided on a grant basis. The CIF will support community projects that improve access of Southville 7 residents to employment opportunities and provide them with sustainable means of livelihood and will be established as a revolving fund. These funds will match government, private sector and nongovernment organization (NGO) funding for Southville 7. Guidelines to implement CAF and CIF subprojects are found in Appendix 11. PPP will likewise be piloted to improve the delivery of water services in Southville 7 (level 2 access, upgradable to level 3). 6. The CAF will support the following projects:

(i) Electrification of houses. The CAF will be tapped to provide electrical infrastructure for 921 housing units. These units have incomplete electrical infrastructure, remained unoccupied until 2009 and have been subjected to deterioration and

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pilferage. Out of the target 2,041 housing units that need to be connected to the main grid, AFI rehabilitated and readied 1,210 units for connection by procuring the needed building materials from donated funds and by tapping the community for voluntary labor. The electrical requirements for the remaining 921 housing units need to be rehabilitated. The CAF will finance the construction of firewalls and installation of service entrance posts and wiring. Support from the CAF will be timely as the Department of Energy has allocated funds to connect the 2,041 houses to the grid.

(ii) Electrification of community facilities. The CAF will provide funding assistance for the electrification of four existing community facilities which were constructed through private sector contributions mobilized by AFI. These are the livelihood center, training center, community center, and health center. (iii) Installation of solar streetlights. The CAF will add 48 solar street lights to the existing 132 lights that were co-financed by the Presidential Social Fund and the private sector. The additional lights will be placed strategically in unlighted portions of the community. The homeowners’ associations (HOAs) will be engaged in the maintenance of the lights and will prepare a manual of procedures for its operation and maintenance.

(iv) Provision of safe drinking water. As part of the PPP pilot, the CAF will supply

counterpart financing to provide level 2 access (upgradable to level 3) to safe drinking water. The CAF will fund about 23% of the total investment requirements, while the remainder will be sourced from public and private funds (AFI has received funding commitments). The operation and maintenance (O&M) will be jointly conducted by the HOAs and private investor(s).

7. Community improvement grants. In addition to the projects identified earlier, the CAF will be used to finance priority development projects that have been defined and agreed upon by the community through a participatory, inclusive, and transparent process. The CAF will provide continuous access to communal water services, rainwater harvesting facilities, establishment of water refilling stations in the market area. It will also help improve hygiene and sanitation in the community through installation of septic tanks, sewerage improvement, and solid waste management projects. 8. The CIF will be utilized for social enterprise development and livelihood assistance. The design and implementation of CIF subprojects will be closely coordinated with relevant government agencies such the Technical Education and Skills Development Authority (TESDA) and the Department of Social Welfare and Development (DSWD).

9. While specific initiatives to be funded by the CIF will be identified in consultation with the community, a portion of the CIF will be earmarked to procure 12 e-trikes. AFI will manage and operate the e-trikes and mini-grid system until such time that an appropriate community-based organization (CBO) has been identified and prepared to take over the responsibilities. A lease system will be enforced wherein a designated driver or user will pay AFI (or the CBO) at an agreed daily or weekly fee. It is estimated that the income from operating an e-trike will generate sufficient savings to purchase additional e-trike units after 3 years. Initial studies show that the e-trike increases the net income opportunity of a tricycle driver by as much as 60%. The CBO will prepare a manual of procedures for the operations and maintenance for the e-trikes.

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10. In collaboration and consultation with the community, AFI will develop and finalize the CAF and CIF policies, guidelines, and implementation mechanisms. For CAF, this will cover the operations and maintenance systems for solar street lights, community facilities, communal water supply, sewerage and solid waste management projects. For the CIF, this will include the operations and maintenance systems for the e-trikes and mini-grid systems, guidelines for the identification, prioritization and availment of projects funded under social enterprise development and livelihood assistance. 11. Monitorable Deliverables/Outputs will include the following:

(i) Residents’ net satisfaction rating of delivery of basic services will be improved by at least 30% by 2015 from the project baseline in 2012.

(ii) All households in Southville 7 will be provided with safe drinking water by the third quarter of 2013.

(iii) At least 40% of houses will be provided with electricity by the first quarter of 2013 from a baseline of 8.9% in 2011.

(iv) At least 30% of households will benefit from livelihood assistance programs by the second quarter of 2015 from the project baseline in 2012. (v) At least 45% of beneficiaries from livelihood assistance programs will be women. Component C. Capacity Development of Residents in Community Development and Social Entrepreneurship ($ 201,300) 12. This component will support community organizing and mobilization, institution building, participatory governance, and development of social enterprises. It will establish functional linkages with existing CBOs and assist in the formation of additional CBOs to meet effective self-management and sustainable development. Training needs for capacity development will be assessed and training interventions identified to meet these needs. Needs based knowledge and skills enhancement programs will be implemented that will develop the competencies of residents and leaders to plan, manage, implement, and monitor community projects. The capacities of the community to implement community driven development (CDD) approaches, as well as to manage and sustain the CIF and other community investments, will be enhanced. The project will also assist in strengthening the effectiveness of newly established HOAs. It will also support the establishment and capacity development of other CBOs (e.g., multipurpose cooperatives), if needed. 13. Monitorable Deliverables/Outputs

(i) Residents will demonstrate the ability to identify community needs and development priorities as well as measures to address them beginning in the second quarter of 2013.

(ii) Management and utilization of the CIF will be guided by the community development plan.

(iii) At least 45% of places in capacity development programs will be filled by women.

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Component D. Project Management, Monitoring and Evaluation, and Reporting System ($ 280,060) 14. This component will establish a project implementation unit (PIU) within AFI, which will be responsible for administering the project as well as monitoring and reporting of results. Its key project management tasks include: (i) establishing an appropriate management system, including guidelines and procedures, for enhanced accountability and transparency in project implementation; (ii) preparing a grant implementation manual; (iii) preparing periodic activity reports and multimedia documentation of project activities and progress; and (iv) conducting and reporting annual audits of project accounts. Key monitoring, evaluation, and reporting tasks include: (i) developing and implementing a performance monitoring system; (ii) establishing project baseline and database; (iii) documenting project processes, achievements, and lessons learned; (iv) providing close monitoring and implementation support to ensure accomplishment of intended results, transfer of knowledge to the community and partner government agencies, and smooth execution of the project’s exit strategy; (v) preparing project progress and completion reports; (vi) assessing the impact of piloted models and interventions on private sector and civil society engagement in the delivery of basic services to poor and underserved communities; (vii) providing recommendations for scaling up and replicating models and interventions tested by the project; and (viii) preparing and publishing knowledge products. 15. Monitorable Deliverables/Outputs

(i) Project management, monitoring, and evaluation and reporting systems will be fully operational by the fourth quarter of 2012.

(ii) Knowledge products on project experiences and lessons learned will be developed and disseminated in 2013–2014. II. COST ESTIMATES, FINANCING PLAN & ALLOCATION OF GRANT PROCEEDS 16. The estimated total project cost is $6,008,744 of which $1,500,000 (or 24.96% of the total project cost) will be financed by the Japan Fund for Poverty Reduction (JFPR), while the rest of the project will be co-financed by the Government of the Philippines ($2,790,334 or 46.44%), private sector (in-kind) contributions ($1,338,180 or 22.27%), and community (in-kind) contributions ($380,230 or 6.33%). Of the government contribution, the NHA will provide $1,457,142 equivalent (in-kind) for the construction of a school building and a multipurpose covered court, rehabilitation of road and drainage systems, resurvey work of lots, individual power and water connections, and two garbage trucks; the Department of Energy (DOE) will provide $1,083,192 million equivalent (in-kind) for the electrical connection to the main grid of 2,041 housing units; and the Laguna Water District (LWD) and Calauan LGU will provide a total financial contribution of $250,000 for the water system. The summary and detailed cost estimates are found in Appendix 2. A. Cost Estimates by Component

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Component JFPR Government Private Sector

Community Total

A. Program for Expanding Multi-sectoral Partnerships

59,800 38,000 97,800

B. Community Development and Innovation Program

885,970 2,790,334 1,234,220 266,230 5,176,754

C. Capacity Development of Residents in Community Development and Social Entrepreneurship

201,300 76,000 277,300

D. Project Management, Monitoring and Evaluation, and Reporting System

280,060 103,960 384,020

Components A-D Total 1,427,130 2,790,334 1,338,180 380,230 5,935,874 Contingency 72,870

Total Grant Cost 1,500,000 2,790,334 1,338,180 380,230 6,008,744 B. Financing Plan 17. ADB will finance $ 1,500,000 on a grant basis through the JFPR project grant. It shall also finance the incremental costs of $ 45,000 from the JFPR administrative budget, which is separate from the project grant.

Funding Source Amount ($) Comments JFPR 1,500,000 Excluding ADB incremental costs Government (in-kind) 2,540,334 Construction of school building, multi-purpose

covered court, rehabilitation of road and drainage systems, resurvey work of lots, individual power and water connections, and two garbage trucks; electrical connection to the main grid of 2,041 housing units

Government (cash) 250,000 Water system Private sector contribution (in-kind)

1,338,180 Construction of water system, community development work, support to project management, social entrepreneurship fund, and preparation and placement of multi-media and knowledge products

Community contribution (in-kind)

380,230 Labor for firewall, electrical service entrance wiring and posts, household connection to mini-grid, participation in trainings, workshops and seminars, community volunteers

Total 6,008,744 C. Allocation of Grant Proceeds 18. The allocation of the JFPR grant by category of expenditures amounting to $1.5 million is shown as follows:

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Category Amount of Grant Allocated in $

Percentage of Expenditures

1. Civil works 335,610 22 2. Vehicle, equipment and supplies 121,300 8 3. Training, workshops, and seminars 128,800 9 4. Consulting services 143,160 10 5. Project management 186,960 12 6. Other project inputs to community development 511,300 34 7. Contingency 72,870 5 Total 1,500,000 100 Incremental Cost 45,000

III. IMPLEMENTATION ARRANGEMENTS A. Executing Agency and Implementing Agency 19. The NHA is the executing agency and AFI is the implementing agency. The NHA is a government owned and controlled corporation tasked to develop and implement a comprehensive and integrated housing program which includes among others: housing development and resettlement, sources and schemes of financing focusing on the socialized housing needs of the lowest 30% of the urban population. AFI is a media-based non-government organization (NGO) that was established by the ABS-CBN Broadcasting Corporation (ABSBC) and registered with the Securities and Exchange Commission (SEC) in 1989. It started with programs on provision of health assistance to the needy through broadcast television. In its 22 years of existence, it has expanded its programs to include social services to address the following: education, children’s welfare, environment, social entrepreneurship, disaster management, and community development. AFI has established itself as one of the leading NGOs in the country with support from the general public comprising more than 60% of its funding. Throughout the years, donors have responded generously to AFI’s calls for support, indicating their trust for its capability to deliver. In 2009, in the aftermath of typhoon Ketsana (Ondoy), AFI received $18.53 million worth of donations for relief and rehabilitation. AFI has also received funding from multinational corporations and international funding agencies. B. Grant Organization and Management 20. Project Steering Committee (PSC). The project’s implementation arrangement will be built on the existing collaboration between the NHA and AFI, which includes a memorandum of agreement to support the supervision, management, and community development of Southville 7. The NHA’s functions will focus on policy advice and overall guidance. AFI will be responsible for project implementation and management. A project steering committee will be established, consisting of one representative and one alternate representative from the NHA, AFI, Calauan LGU, private sector partners, and NGO partners to oversee the project’s implementation and to provide advice on project related needs. With the NHA as chair, the project steering committee will meet quarterly or, if required, more often, to discuss and review project progress, provide policy support and guidance, ensure timely and appropriate coordination of stakeholders, ensure dissemination of information, and adopt the necessary policy measures and program adjustments. The Project Implementing Unit (PIU) will be responsible for preparing and disseminating at least a week in advance a meeting agenda, necessary supporting documents, and will inform all members on the timing and place for the meetings.

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21. Project Implementation Unit (PIU). The PIU will be established within the AFI offices in Calauan, Laguna to manage overall project implementation. The PIU will be responsible for the following: (i) project planning, management, coordination with various stakeholders; (ii) financial management of the grant accounts and disbursement of funds; (iii) procurement of goods, and services; (iii) submission of progress, financial, and audit reports to ADB; (iv) timely submission of audited accounts for the grant; (v) coordination of monitoring and evaluation activities; and (vi) coordination of grant supervision. The PIU will be composed of (i) a project manager, (ii) a deputy project manager, (iii) a financial management specialist, and (iv) a civil works and procurement specialist. The PIU will be supported by consultants, specialists, and technical advisors. Local CBOs will also be involved in the implementation of community development activities and livelihood assistance programs. A diagram of the project’s organization and management structure is shown in Appendix 3. 22. The project will partner with established corporate entities to provide a level 2 (upgradable to level 3) water system and connect households to electricity. Using their funding contributions to the project, these entities will be responsible for providing technical experts (such as an electrical engineer, civil works specialist, and procurement specialist) to set up the needed utilities. These experts will prepare the construction and procurement plan, and oversee the construction of water and power utilities in Southville 7. C. Japanese Visibility and Coordination with Embassy of Japan and JICA

Participatory Approach 23. Consultations were held with national and local government agencies, AFI, NGOs, CBOs, community members and leaders of Southville 7, and the Embassy of Japan (EoJ) during the project appraisal and design mission in September 2011. Project stakeholders, including women community leaders, were invited to provide inputs on the project design, scope, implementing arrangements, opportunities for partnership, and lessons learned from similar initiatives in the country. The NHA, Calauan LGU, and AFI provided extensive information about Southville 7 as well as the municipality and province. The views and suggestions of the stakeholders consulted have been incorporated into the project design. Opportunities to partner with private sector organizations and NGOs were also identified during the project preparation. 24. During implementation, the project will promote stakeholder and community participation through the partnership building and CDD approaches that have been embedded in the project design. A consultation and participation plan will also be prepared at project inception to further strengthen the project design’s participatory process during implementation. This is found in Appendix 12. The plan will identify stakeholders and community participation processes that will be actively co-managed by the PIU and the CBOs. The participation of women in managing community affairs and community investments is embedded in project design and implementation.

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Primary Beneficiaries and Other Affected Groups and Relevant Description

Other Key Stakeholders and Brief Description

About 5,896 poor families or nearly 30,000 individuals in Southville 7 (Calauan, Laguna) will have improved access to drinking water, electricity, and livelihood opportunities. The residents will also benefit from upgraded community facilities and social infrastructure.

Civil society, the private sector, and the government will gain experience and strengthen their partnerships in promoting effective and sustainable models for improving access of the poor to basic services.

Capacities of residents in community development, self-governance, and social entrepreneurship will be strengthened.

AFI and local NGOs, with support from the project and private sector, will work closely with CBOs in the design and implementation of needs-based and gender-focused capacity development programs.

Institutional capacities of key government agencies such as the NHA and Calauan LGU to deliver basic services, including implementation of PPP modalities in the community, will be enhanced.

The project will help facilitate the convergence of programs and initiatives on social protection and service delivery improvement in vulnerable and disadvantaged communities.

Coordination

25. The project was designed in close consultation with stakeholder groups representing national and local government, civil society, the private sector, and the community. Project implementation will seek to expand and sustain the existing partnerships of AFI with the government, private sector, NGOs, and development partners such as the Japan International Cooperation Agency (JICA). AFI will strengthen its partnership with the Institute of Development Management and Governance, College of Public Affairs, University of the Philippines, Los Baños, which has an academic exchange program with Doshisha University in Kyoto, Japan. This exchange program recently brought a group of Japanese graduate students to Southville 7 for an exposure visit and outreach program. AFI has approached the ChildFund Japan as a possible NGO partner, and the Japanese External Trade Organization (JETRO) as a private sector partner in project implementation. Visibility 26. The Japan official development assistance logo and the JFPR logo will be used in publications and any other materials produced under the project. All press releases issued by ADB and local news media for the JFPR project activities will acknowledge the financial contribution from the Government of Japan following the Guidance Note on Visibility of Japan.1

The visibility and awareness of the JFPR program will be enhanced by AFI’s media network. Officials from the Embassy of Japan will be invited to attend key project events and ceremonies. The involvement of Japanese NGOs and business organizations in community-based activities will further promote visibility and awareness of the JFPR program.

1 ADB. 2012. Japan Fund for Poverty Reduction: Guidance Note on Visibility of Japan. Manila

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IV. IMPLEMENTATION SCHEDULE 27. The project will be implemented over 3 years, from 22 May 2012 to 31 May 2015. The detailed implementation schedule is in Appendix 4.

V. PROCUREMENT A. Goods and Services 28. All procurements under the JFPR grant will be conducted in accordance with ADB’s Procurement Guidelines2

(2010 as amended from time to time). Goods and civil works costing $100,000 or less will be procured using shopping. Any minor supplies, equipment and materials costing less than $10,000 may be procured through direct contracting. Community participation based procurements for goods and services below $ 2,500 may be procured through shopping or direct contracting. Any necessary modifications or clarifications will be reflected in the procurement plan prepared for the initial 18 months as shown in Appendix 6. The procurement procedures for goods is in Appendix 7

B. Consulting Services 29. Fifteen individual local consultants and two local NGOs will be recruited in accordance with Guidelines on the Use of Consultants3

(2010 as amended from time to time). The project will recruit individual consultants to support project implementation under the PIU. A project manager will be recruited to lead, plan, coordinate, and monitor the project activities and prepare the project progress reports. A deputy project manager will be engaged to assist in overall project management, and monitoring and reporting of implementation progress and results. A financial management specialist will be hired to maintain the project accounts, and prepare financial reports. A civil works and procurement specialist with experience in the government and ADB procurement procedures will be engaged to oversee the civil works and procurement of equipment and supplies. An expert on PPP, a resource mobilization specialist and a technical adviser will be hired to provide assistance on expanding multi-sectoral partnerships. A social entrepreneurship specialist will provide support to the community development and innovation program, a community development specialist and four (4) community organizers will be employed to assist in community capacity development. A knowledge management specialist and a monitoring and evaluation specialist will assist in project management. Two local NGOs will be recruited through the consultant qualification selection method to manage livelihood programs. An external auditor will be engaged through the least-cost selection method to audit the project accounts. AFI will be responsible for the selection of consultants with ADB endorsements. The procurement procedures for consultancy services are in Appendix 8 while details on required consulting services and outline of Terms of Reference (TOR) for the project are found in Appendix 9.

VI. DISBURSEMENT PROCEDURES

A. Imprest Fund (IF) Procedure

2 ADB 2010. Procurement Guidelines. Manila 3 ADB 2010. Guidelines on the Use of Consultants. Manila

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30. The JFPR grant proceeds will be disbursed in accordance with the ADB’s Loan Disbursement Handbook4

(July 2012, as amended from time to time). A Japan Fund for Poverty Reduction (JFPR) imprest account was opened by the ABS-CBN Foundation, Inc. (AFI) at Banco de Oro Hongkong, a commercial bank acceptable to the Asian Development Bank (ADB). This US dollar account will be delegated to the project implementation unit (PIU) established within the AFI to facilitate day-to-day project expenditures. The NHA will be kept informed by the PIU of all transactions and will receive copies of financial statements and annual audit reports. Initial disbursement will be based on the first 6-month activity plan and related budget, and afterwards on the five remaining semiannual work plans and budgets. Contributions from private institutions and other partner organizations will be channeled to a separate account established by AFI to finance different sets of civil works and equipment and supplies packages. Expenditures paid through the JFPR will be accounted for and recorded separately. Disbursement guidelines are found in Appendix 10 and discussions on the Community Assistance Fund and the Community Innovation Fund are found in Appendix 11. The schematic flow for JFPR funds and the overall project fund flow are in Figures 1 and 2.

31. ADB will advance up to 6 months estimated expenditure to be financed through the imprest account, or 10% of the grant amount, whichever is lower, for day-to-day project implementation during the inception period. ADB will replenish funds to the imprest account based on requests from the PIU in accordance with ADB’s statement of expenditure procedure. The imprest account will be established, managed, replenished, and liquidated in accordance with ADB’s Loan Disbursement Handbook (July 2012, as amended from time to time). The statement of expenditure procedure will apply to all payments and transactions under $10,000 to ensure speedy project implementation. Detailed implementation arrangements, such as funds flow, replenishment, and administrative procedures are discussed in Appendix 10 of this grant implementation manual and established between ADB and the Government of the Philippines through the letter of agreement. 32. Interest earned on the imprest account may be used for project purposes within the approved total amount of the JFPR project, subject to ADB approval. Any unutilized interest should be returned to the JFPR fund account maintained by ADB upon completion of the project and before project closure. B. Direct Payment (DP) Procedure 33. The direct payment procedure is one whereby ADB, at the grant recipient’s request, pays a designated beneficiary directly. This procedure will be used for the connection of the community facilities to the main electrical grid established by Meralco, the grant share for the construction of the water system and service connections of individual houses to the water system facilities that will be decided upon in the course of grant implementation. Required supporting documents include the claim or invoice from the contractor and a summary of work progress certified by the project engineer and approved by the grant recipient’s authorized representative. C. Statement of Expenditure (SOE) Procedure 34. The statement of expenditure (SOE) procedures will be used for reimbursement of eligible expenditures for the JFPR Project and to liquidate advances provided into the imprest account, in accordance with ADB's Loan Disbursement Handbook. Any individual payment to be 4 ADB 2012, Loan Disbursement Handbook, Manila.

12

reimbursed or liquidated under the SOE procedure shall not exceed $10,000, and for payment and transactions in excess of $10,000 equivalent, supporting documents should be submitted. 35. Disbursement procedures including instructions on establishment and operation of the imprest account, SOE procedures, preparing withdrawal applications and financial reporting, and sample forms are in Appendix 10.

Figure 1: Fund Flow Arrangement

CAF=Community Assistance Fund, CIF=Community Innovation Fund. Source: Asian Development Bank.

Component A Program for expanding

multisectoral partnerships

Component C Capacity development of

residents

Component B Community development and innovation program (CAF, CIF, and social

preparation)

Component D Project management,

monitoring and evaluation, and reporting

system

$201,300

$885,970 $280,060

$59,800

Project implementation unit Project imprest account

Asian Development Bank

Private sector partners

ADB incremental costs National Housing

Authority

$45,000

13

Flow of Fund request

Flow of funds to JFPR imprest account, AFI, contractor

Source: Asian Development Bank

Direct payment for selected goods and

works

Asian Development Bank

National Housing Authority

[Executing Agency]

Contractors/suppliers (livelihood assistance, civil works)

ABS-CBN Foundation, Inc. (AFI)

[Implementing Agency]

Private sector/other partner Organizations (partners)

JFPR imprest account [Project Implementing Unit]

Account of partners’ contributions

Component D: Establishing effective project

management, monitoring and evaluation, and reporting

system

Component C: Enhancing skills of residents in

community development and social

entrepreneurship

Component A: Piloting a program for multisectoral

partnerships

Component B: Community development and improvement program

Community Assistance

Fund

Community Innovation

Fund

Social preparation

Letter of agreement

Withdrawal application and replenishment

Invoice/contract

Pro

ject

ove

rsig

ht

Figure 2. Fund Flow Arrangement

14

VII. REPORTING REQUIREMENTS

A. Grant Status Report for OCO 36. As part of regular reporting, the executing agency will prepare a semi-annual grant status report and submit the report to ADB within one month of the end of each reporting period. The grant status report template is in Appendix 13. B. Progress Reports 37. The PIU will consolidate all project activity reports from the consultants and contractors and prepare gender-disaggregated quarterly and annual reports on project implementation, (the form and content of which will be agreed upon with ADB) for endorsement by AFI and timely submission to ADB. Quarterly reports will be due not later than 30 days after the end of each project quarter. Within 2 months of project inception, the PIU will submit a baseline survey report on the project’s target communities. A midterm report will be submitted to ADB 18 months after project inception. The government will provide a project completion report to ADB with the support of the PIU, within 3 months of physical completion of the project. All reports will comprise an assessment of the project outcome and outputs, project performance indicators, and suggestions for improving project implementation. C. Audited Grant Accounts 38. AFI will maintain separate project accounts financed by the project, the government, and the private sector in accordance with sound accounting principles. All project accounts will be audited annually by an independent external auditor acceptable to ADB, using international accounting and auditing standards. The audit report from the external auditor must be submitted to ADB’s Controller Department (CTL), with a copy to ADB’s Office of Co-financing Operations (OCO), not more than 6 months following the end of the fiscal year or project closing date (whichever is first). The report should include certified copies of the audited accounts and financial statements. It should also include the report of the auditors relating to these statements, including the auditors’ opinion on the use of the JFPR funds, the operation of any imprest account, and the application of any statement of expenditures procedure authorized under the JFPR project. D. Benefit Monitoring and Evaluation Report 39. Project performance will be monitored based on the design and monitoring framework (Appendix 1). The benefit monitoring and reporting plan is shown below. Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E Policies and guidelines for replicating the partnership framework, including the implementation of PPP initiatives in the community, are presented to and considered by the NHA, Calauan LGU, and other government agencies by the second quarter of 2015

Periodic project status reports Midterm and project completion reports Final evaluation study

Quarterly project progress reports Midterm evaluation Impact evaluation study

15

Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E At least 6 communities in which the partnership framework can be replicated are identified by the second quarter of 2015

Periodic project status reports Midterm and project completion report Final evaluation study

Quarterly project progress reports Midterm evaluation Impact evaluation study

The NHA and partners sign covenant to replicate the project framework in the identified communities by the second quarter of 2015

Periodic project status reports Midterm and project completion report Final evaluation study

Quarterly project progress reports Midterm evaluation Impact evaluation study

E. Implementation Completion Memorandum 40. An Implementation Completion Memorandum (ICM) will be prepared by the ADB project officer and executing agency within 6 months of grant closing. Guidelines for preparing an ICM and templates are in Appendix 14.

VIII. GRANT MONITORING AND EVALUATION A. Contract Awards/Commitments and Disbursement Projections 41. AFI will prepare and submit to ADB annual contract awards and disbursement projections for the entire duration of the project. This requirement is to monitor project implementation and help identify impediments to implementation progress. The projects may be updated at midterm or during a special review mission. B. Grant Reviews 42. ADB and the government will jointly undertake reviews of the project at least twice a year. The reviews will assess progress, specify issues and constraints, and determine necessary remedial action and adjustments. A midterm review will be conducted in the second year of implementation. It will review and assess the progress of project implementation against performance indicators, and recommend changes in the project scope and/or implementation arrangements, if necessary. C. Mid-term Review 43. A midterm evaluation performed by the project’s counterpart staff together with ADB will (i) review the project scope, design, and implementation arrangements; (ii) identify changes in scope or implementing arrangements since project appraisal; (iii) assess the project’s progress toward meeting its stated objectives; (iv) identify problems and suggest ways to overcome them during the final 18 months of the project; and determine compliance with the JFPR Letter of Agreement. D. Project Completion 44. The government project completion report (PCR) will be prepared by the project implementation team following the standard ADB format found in Appendix 14. Following submission of the government PCR and handover of all project assets, an ADB Completion

16

Report and independent impact assessment comparing baseline and end of project conditions will be prepared by an independent individual consultant recruited by ADB.

IX. MAJOR COVENANTS 45. NHA and AFI shall carry out the JFPR project with due diligence and efficiency, and shall cause the project to be carried out with concerned stakeholders in accordance with the arrangement described in the Letter of Agreement dated 22 May 2012 shown in Appendix 16. The grant covenants are summarized in Appendix 17.

Appendix 1

17

APPENDIX 1 DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

Impact Strengthen multi-sectoral partnerships for sustainable development of poor and underserved communities

Multi-stakeholder partnership framework replicated in at least 3 communities by 2016

Reports of participating corporate entities and civil society organizations (CSOs) Annual reports of the ABS-CBN Foundation, Inc. (AFI) Annual reports of the National Housing Authority (NHA) Annual reports of national government agencies and/or local government units (LGUs)

Assumption Sustained commitment and support of the government, private sector, and CSOs Risk Weak implementation support from future elected officials

Outcome Tested an innovative and replicable model of multi-stakeholder partnerships for improving access of the poor to basic services

Policies and guidelines for replicating the partnership framework, including the implementation of public–private partnership (PPP) modalities in the community, are presented to and considered by the NHA, Calauan LGU, and other government agencies by second quarter 2015 At least 6 communities in which the partnership framework can be replicated are identified by second quarter 2015 The NHA and partners sign covenant to replicate the partnership framework in the identified communities by second quarter 2015

Annual reports of the NHA and other government agencies Annual reports of AFI and partner organizations

Assumption Effective cooperation of different stakeholder groups Risk Partners are unable to deliver on their commitments

Outputs 1. Piloted a program

for expanding multi-sectoral partnerships

Southville 7 is integrated in the municipal development plan and the annual investment program of Calauan LGU beginning first quarter 2013 Piloted a PPP project by third quarter 2013 Financial resources and contributions in-kind provided to Southville 7 by different stakeholder groups increased by

Project progress and completion reports prepared by AFI Annual reports of participating corporate entities Annual reports of participating CSOs NHA annual reports

Assumption Timely and effective project implementation Risk Weak community participation

Appendix 1

18

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

2. Implemented a

community development and innovation program

3. Enhanced

capacities of residents in community development and social entrepreneurship

4. Established a

project management, monitoring and evaluation, and reporting system

at least 25% in second quarter 2015 from project baseline in 2012 (baseline to be collected and completed 2 months from project inception) Residents’ net satisfaction rating of delivery of basic services improved by at least 30% by 2015 from project baseline in 2012 (baseline to be collected and completed 2 months from project inception) All households in Southville 7 provided with safe drinking water by third quarter 2013 At least 40% of houses are provided with electricity by first quarter 2013 from 8.9% in 2011 At least 30% of households benefited from livelihood assistance programs by second quarter 2015 from project baseline in 2012 At least 45% of beneficiaries from livelihood assistance programs are women Residents demonstrate ability to identify community needs and development priorities, as well as measures to address them beginning second quarter 2013 Management and utilization of the Community Innovation Fund (CIF) are guided by the community development plan (CDP) At least 45% of places in capacity development programs filled by women

Fully operational project management, monitoring and evaluation, and reporting systems by fourth quarter 2012 Knowledge products on project experiences, innovations, and lessons learned developed and disseminated in 2013–2014

Reports of corporate entities and participating organizations Client satisfaction surveys of service delivery conducted by AFI Water quality test results of the Department of Science and Technology AFI project progress and monitoring reports

Reports prepared by community-based organizations (CBOs) and homeowners association (HOAs) Project progress and completion reports prepared by AFI NHA annual reports Reports prepared by HOAs and CBOs Project progress and completion reports prepared by AFI Reports, policy briefs, and

Appendix 1

19

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

recommendations prepared by AFI NHA annual reports

Activities with Milestones 1.1. Identify and dialogue with partners and volunteers by third quarter 2012 1.2. AFI and partners sign a covenant confirming their funding commitments and

contributions in-kind to Southville 7 by fourth quarter 2012 1.3. Institutional framework and business plan for expanding and sustaining

partnerships is formulated by AFI by fourth quarter 2012; AFI implement the plan beginning first quarter 2013

1.4. Capacity development activities on PPP conducted for the NHA and Calauan LGU by fourth quarter 2012

1.5. Feasibility study for piloting a PPP project completed by first quarter 2013 1.6. Provision of basic services in Southville 7 incorporated in the municipal

development plan and investment program of Calauan LGU beginning first quarter 2013

2.1. 2,041 houses are provided with electricity (main grid) by first quarter 2013 2.2. Rehabilitation of four community facilities for electrification completed by second

quarter 2013 2.3. Management systems for the operation of the e-trikes and mini-grid established

by fourth quarter 2013 2.4. Agreement among HOAs and residents reached on the operation and

maintenance system (O&M) for the e-trikes and mini-grid system by fourth quarter 2013

2.5. 480 houses connected to the mini-grid by fourth quarter 2013 2.6. Installed 48 additional solar street lights by second quarter 2013 2.7. Community Assistance Fund (CAF) and CIF, including O&M systems, are fully

operational by second quarter 2013 2.8. Civil works for water services completed by second quarter 2013 3.1. CBOs established by fourth quarter 2012 3.2. Capacity development needs assessment and recommended programs

identified by first quarter 2013 3.3. Needs-based knowledge and skills enhancement programs implemented

beginning second quarter 2013 3.4. HOA and CBO officers trained on management and leadership, project

management, financial management, and community organizing and development by third quarter 2013

3.5. 3-year CDP prepared by the community by first quarter 2013 and updated annually thereafter

2.1. PIU established and mobilized by fourth quarter 2012 2.2. Project management, monitoring and evaluation, and system that incorporates

sex-disaggregated and gender-specific indicators established by fourth quarter 2012

2.3. Project baselines and database established by fourth quarter 2012 2.4. Project exit strategy and community governance systems designed and

implemented beginning first quarter 2013 2.5. Timely submission of required project and financial reports from third quarter

2012 to second quarter 2015 2.6. Good practices and innovations identified and documented beginning second

quarter 2013 2.7. Project evaluation study conducted by second quarter 2015

Inputs Indicative budget: Japan Fund for Poverty Reduction: $1.5 million Counterpart:

Government: $2.54 million (in-kind); $0.25 million (financial contribution) Private sector: $1.34 million Community contribution: $0.38 million (in-kind)

Source: Asian Development Bank.

Appendix 2

20

APPENDIX 2 SUMMARY COST ESTIMATES

($) Item Component

A: Multisectoral Partnerships

Component B: Community Driven and Innovation

Component C: Capacity

Development

Component D: Project

Management

Contingency Total ($)

%

1. Civil works 0 335,610 0 0 335,610 22 2. Vehicle, equipment and supplies 0 61,800 39,500 20,000 121,300 8 3. Training, workshops and seminars

24,600 13,600 90,600 0 128,800 9

4. Consulting services 35,200 14,960 71,200 21,800 143,160 10 5. Project management 0 0 0 186,960 186,960 12 6. Other inputs to community development

0 460,000 0 51,300 511,300 34

7. Contingencies 0 0 0 0 72,870 72,870 5 Subtotal JFPR Grant Financed 59,800 885,970 201,300 280,060 72,870 1,500,000 100 Government contribution (cash and in kind)

0 2,790,334 0 0 2,790,334

Private sector contributions (in kind) 0 1,234,220 0 103,960 1,338,180 Community contributions (in kind) 38,000 266,230 76,000 0 380,230 Total Estimated Costs 97,800 5,176,754 277,300 384,020 72,870 6,008,744 Incremental Costs 45,000 JFPR = Japan Fund for Poverty Reduction Source: Asian Development Bank

Appendix 2

21

DETAILED COST ESTIMATES ($)

Supplies and Services Rendered Costs JFPR Contributions

Quantity Unit Cost per Unit

Total Amount Method of Procurement

Government

Private Sector

Community

Component A: Program for Expanding Multisectoral Partnerships 97,800 59,800 1. Training, Workshops and Seminars 62,600 24,600 - - 38,000 1.1 Training, Workshops and Seminars 18 event 500 9,000 9,000 SHP 0 0 0 1.2 Meetings and Consultations 36 event 100 3,600 3,600 SHP 0 0 0 1.3 Resource people 60 person-

day 200 12,000 12,000 ICS 0 0 0

1.4 Community participation 1,000 person-day

38 38,000 0 0 0 38,000

2. Consulting Services 35,200 35,200 0 0 0 2.1 PPP experts 44 person-

day 300 13,200 13,200 ICS 0 0 0

2.2 Resource mobilization specialist 44 person-day

200 8,800 8,800 ICS 0 0 0

2.3 Technical advisers 22 person-day

200 4,400 4,400 ICS 0 0 0

2.4 Per diem 110 Day 80 8,800 8,800 0 0 0 Component B: Community Development and Innovation Program 5,176,754 885,970 2,790,334 1,234,220 266,230 1. Civil Works 3,441,573 335,610 2,790,334 247,000 68,630 1.1 Firewall materialsa 698 unit 110 76,610 76,610 SHP 0 0 0 1.2 Service entrance wiring materialsa 850 unit 61 51,829 51,829 SHP 0 0 0 1.3 Service entrance post materialsa 104 unit 80 8,371 8,371 SHP 0 0 0 1.4 Community facilities connectiona 4 unit 7,350 29,400 29,400 DP 0 0 0 1.5 Solar street lightsa 48 unit 800 38,400 38,400 SHP 0 0 0 1.6 Electrification of 2,041 houses (main grid) 1 lot 1,083,192 1,083,192 0 1,083,192 0 0 1.7 Firewalls labor 698 unit 38 26,524 0 0 0 26,524 1.8 Service entrance wiring labor 850 unit 38 32,300 0 0 0 32,300 1.9 Service entrance posts labor 104 unit 38 3,952 0 0 0 3,952 1.10 Water systema 1 lot 500,000 500,000 125,000 DP 250,000 125,000 0 1.11 Installation of mini-gridb 1 lot 6,000 6,000 6,000 SHP 0 0 0 1.12 Household connection to mini-grid 480 unit 12 5,854 0 0 0 5,454 1.13 Construction of school building and multipurpose covered court, rehabilitation of road and drainage, resurvey of

1 lot 1,457,142 1,457,142 0 1,457,142 0 0

Appendix 2

22

Supplies and Services Rendered

Costs JFPR Contributions Quantity Unit Cost per

Unit Total Amount Method of

Procurement Governm

ent Private Sector

Community

lots, provision of power and water connection , and water trucks 1.14 Livelihood center 1 lot 122,000 122,000 0 0 122,000 0 2 Vehicles, Equipment and Supplies 61,800 61,800 0 0 0 2.1 Information materials 12 lot 150 1,800 1,800 SHP 0 0 0 2.2 E-trikesb 12 unit 5,000 60,000 60,000 SHP 0 0 0 3 Training, Workshop and Seminars 59,200 13,600 0 0 45,600 3.1 Training, Workshop and Seminars 20 event 500 10,000 10,000 SHP 0 0 0 3.2 Meetings and consultations 36 event 100 3,600 3,600 SHP 0 0 0 3.3 Community participation 1,200 person-

day 38 45,600 0 0 0 45,600

4 Consulting Services 26,180 14,960 0 11,220 0 4.1 Social entrepreneurship specialist 66 person-

day 200 13,200 13,200 ICS 0 0 0

4.2 Per diem 22 day 80 1,760 1,760 0 0 0 4.3 Electrical engineer 5 person-

month 488 2,440 0 0 2,440 0

4.4 Civil engineer 12 person-month

488 5,854 0 0 5,854 0

4.5 Procurement officer 6 person-month

488 2,927 0 0 2,927 0

5. Other Project Inputs to Community Development 1,588,000 460,000 0 976,000 152,000 5.1 Social enterprise developmentb 76 lot 2,500 190,000 190,000 (a) 0 0 0 5.2 Livelihood assistanceb 300 house

hold 400 120,000 120,000 (b) 0 0 0

5.6 Grants for priority community improvement projectsa 6 lot 25,000 150,000 150,000 SHP 0 0 0 5.12 Community development work and support to project management

1 lot 610,000 610,000 0 0 610,000 0

5.13 Social entrepreneurship fund 3 lot 122,000 366.000 0 0 366,000 0 5.14 Community volunteers 4,000 person-

day 38 152,000 0 0 0 152,000

Component C: Capacity Development 277,300 201,300 0 0 76,000 1 Vehicles, Equipment and Supplies 39,500 39,500 0 0 0 1.1 Training references and materials 54 lot 600 32,400 32,400 SHP 0 0 0 1.2 CAF and CIF manuals 100 Unit 15 1,500 1,500 SHP 0 0 0 1.3 Laptop ( for use of community-based organizations) 4 unit 600 2,400 2,400 SHP 0 0 0

Appendix 2

23

Supplies and Services Rendered

Costs JFPR Contributions Quantity Unit Cost per

Unit Total Amount Method of

Procurement Governm

ent Private Sector

Community

1.4 Multimedia projector (for use of community based organization)

4 Unit 800 3,200 3,200 SHP 0 0 0

2. Training, Workshops and Seminars 166,600 90,600 0 0 76,000 2.1 Training, Workshop and Seminars 108 event 500 54,000 54,000 SHP 0 0 0 2.2 Meetings and consultations 216 event 100 21,600 21,600 SHP 0 0 0 2.3 Resource person 60 person-

day 250 15,000 15,000 IC 0 0 0

2.4 Community participation 2,000 person-day

38 76,000 0 0 0 76,000

3 Consulting Services 71,200 71,200 0 0 0 3.1 Community development specialist 88 person-

day 200 17,600 17,600 ICS 0 0 0

3.2 Community organizers 528 person-day

80 42,240 42,240 ICS 0 0 0

3.3 Per diem 142 day 80 11,360 11,360 0 0 0 Component D: Project Management 384,020 280,060 0 103,960 0 1 Vehicles, Equipment and Supplies 20,000 20,000 0 0 0 1.1 Office equipment and furniture 1 lot 5,000 5,000 5,000 SHP 0 0 0 1.2 Office supplies and communications 36 month 417 15,000 15,000 SHP 0 0 0 2 Consulting Services

21,800 21,800 0 0 0

2.1 Knowledge management specialists 88 person-day

200 17,600 17,600 ICS 0 0 0

2.2 M&E specialist 6 person-month

700 4,200 4,200 ICS 0 0 0

3 Project Management 186,960 186,960 0 0 0 3.1 Project Manager 36 person-

month 1,800 64,800 64,800 ICS 0 0 0

3.2 Deputy Project Manager 36 person-month

1,500 54,000 54,000 ICS 0 0 0

3.3 Financial Management Specialist 36 person-month

1,000 36,000 36,000 ICS 0 0 0

3.4 Civil works and procurement specialist 24 person-month

900 21,600 21,600 ICS 0 0 0

3.5 Per diem 132 day 80 10,560 10,560 0 0 0 4 Other Project Inputs 155,260 51,300 0 103,960 0

Appendix 2

24

Supplies and Services Rendered

Costs JFPR Contributions Quantity Unit Cost per

Unit Total Amount Method of

Procurement Governm

ent Private Sector

Community

4.1 Project baseline survey 1 lot 10,000 10,000 10,000 FBS 0 0 0 4.2 Project evaluation study 1 lot 10,000 10,000 10,000 FBS 0 0 0 4.3 Development, publication and dissemination of knowledge products

6 lot 3,000 18,000 18,000 SHP 0 0 0

4.4 External audit 3 unit 1,200 3,600 3,600 LCS 0 0 0 4.5 Office refurbishing 1 lot 2,500 2,500 2,500 SHP 0 0 0 4.6 Meetings and consultations 72 event 100 7,200 7,200 SHP 0 0 0 4.7 Multimedia products (project experiences) 8 lot 8,000 64,000 0 0 64,000 0 4.8 Cost of media placements (for knowledge and multimedia products)

108 spots 370 39,960 0 0 39,960 0

Components A to D = Subtotal Subtotal 5,935,874 1,427,130 2,790,334 1,338,180 380,230 Contingency 72,870 TOTAL Grant Costs Total 6,008,744 1,500,000 2,790,334 1,338,180 380,230 TOTAL Incremental Costs 45,000

CAF = Community Assistance Fund, CIF = Community Innovation Fund, FBS = Fixed Budget Selection, ICS = Individual Consultant, JFPR = Japan Fund for Poverty Reduction, LCS = Least-Cost Selection, M&E = Monitoring and Evaluation, PPP = Public Private Partnerships, SHP = Shopping, DP = Direct Payment Notes: (1) Each training, workshop and seminar will have about 25-30 participants, and be 2-4 days depending on the need and design (2) Each meeting or consultation will have about 15-25 participants (3) Areas of expertise of the resource people will include strategic planning and formulation, partnership building, and institutional development (4) Areas of expertise of the technical advisers may include project development and management, law, and procurement (a) Provisional sum for CIF sub-projects (b) Provisional sum for livelihood assistance Source: Asian Development Bank

Appendix 3

25

APPENDIX 3 PROJECT ORGANIZATION CHART

Project manager

Deputy project manager

Financial management

specialist

Civil works/ procurement

specialist

Consultants/ specialists/

advisors

Local NGOs

Project Steering Committee

Other partners,

private sector/ other CSOs

Community-based

organizations

Appendix 4

26

APPENDIX 4 IMPLEMENTATION SCHEDULE

2012 2013 2014 2015 No. TASK NAME Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2

JFPR 9162: Promoting Partnerships and Innovation in Poor and Underserved Communities

1 COMPONENT A: Program for Expanding Multi-Sectoral Partnerships 1.1 Develop institutional framework and business plan for multi-sectoral

partnerships

1.2 Conduct capacity development activities on PPP 1.3 Develop policies, implementing guidelines and tool kit for PPP

1.4 Prepare and implement feasibility study for pilot PPP

1.5 Assess needs and gaps in community services 2 COMPONENT B: Community development and innovation program

2.1 Provide electricity for 2,041 houses 2.2 Electrify and rehabilitate four community facilities 2.3 Establish management systems for operation of the e-trikes and mini-grid 2.4 Install additional solar street lights 2.5 Establish full operations of the CAF and CIF 2.6 Provide water connection to residents 2.7 Identify and implement community improvement projects

2.8 Identify and implement social enterprise and livelihood assistance programs

3 COMPONENT C: Capacity development of residents in community development and social entrepreneurship

3.1 Establish CBOs and HOAs 3.2 Identify capacity development needs assessment and recommend programs 3.3 Implement needs-based knowledge and skills enhancement programs 3.4 Train HOA and CBO officers on management, leadership and identified

skills and competencies

3.5 Prepare 3-year Community Development and Investment Plan and integrate into Calauan Municipal Development and Annual Investment Plans

4 COMPONENT D: Project management, monitoring and evaluation, and reporting system 4.1 Establish PIU 4.2 Establish project management, monitoring and evaluation system 4.3 Establish project baselines and database 4.4 Design and implement project exit strategy and community governance

systems 4.5 Submit required project and financial reports on time 4.6 Identify and document good practices and innovations

4.7 Conduct project evaluation study

Appendix 5

27

APPENDIX 5 Guidance Note on Visibility of Japan

Introduction On 6 October 2009, the Board approved the Revised Operating Framework for the Japan Fund for Poverty Reduction (JFPR), thereby combining Japan’s project grant and technical assistance support under one umbrella, and paving the way for a more comprehensive approach to the use of these funds towards addressing poverty, building up human resources, and empowering institutions and communities in the region. Japan has been making generous contributions for technical assistance activities through the Japan Special Fund, and for poverty reduction projects through JFPR, since they were established in 1988 and 2000, respectively. It is but fitting and proper that said contributions are acknowledged and the recipients and general public are informed of the source of the funding assistance both at the Fund level and at the level of the individual TA and project grants. The purpose of this note is to provide guidance on measures to ensure that the contribution of Japan in supporting JFPR is widely recognized. Statement on Japanese Visibility The JFPR Policy Guidelines provide general guidance on Japan Visibility and Coordination with Local Embassy of Japan Officials. More specifically, task teams are encouraged to help promote the visibility and local awareness of JFPR in recipient countries through the following:

(a) Publications, training programs, seminars and workshops financed by JFPR grants should clearly indicate that the activities in question have received funding from the Government of Japan; (b) The JFPR logo (Attachment 1) should be used in publications financed by the JFPR program, and in banners and any other materials used in seminars and training programs financed by JFPR grants; (c) All press releases issued by ADB with respect to JFPR grants should refer to the financial contribution from the Government of Japan; (d) Recipients should be encouraged to ensure that JFPR-financed activities are well covered by local print and electronic media, and that all related publicity materials, official notices, reports and publications explicitly acknowledge Japan as the source of funding received; (e) Grant signing ceremonies in the field should be encouraged, with the Recipients being encouraged to include Japanese embassy officials and to invite local and international press to these ceremonies; and (f) Civil works, project billboards/signages, vehicles, and equipment should carry the JFPR logo.

In addition, OCO may promote visibility of JFPR by: (i) informing Country Directors of the

importance of signing ceremonies to Japanese officials and the public to ensure recognition and support for JFPR funding; and (ii) continuing widespread distribution of the JFPR Annual Report, inclusion of JFPR information in relevant ADB documents, and occasional information sessions for Japanese organizations. Below are examples of other ways to improve visibility.

Appendix 5

28

The JFPR Logo (for JFPR-funded projects and TAs)

The logo will be used on the JFPR website. All grant approval notifications will include this guidance note and a printout of the logo. Soft copies (a pdf version and an Adobe Illustrator version) may be downloaded from the Co-financing Website for use by the ADB and transmission to grant recipients. The ADB will make every effort to ensure that: (i) publications, training programs, seminars, workshops, financed by the JFPR grants clearly indicate that the activities in question have received funding from the Government of Japan; (ii) all press releases issued by the ADB with respect to the JFPR grants refer to the financial contribution of Government of Japan; and (iii) the logo is used in publications financed by the JFPR program, banners and any other materials used in seminars and training programs financed by the JFPR grants; as well as on civil works projects, vehicles, equipment, etc. Japan ODA Logo (for other Japan Fund-supported grants)

Guidelines on the use of this logo may be downloaded from the OCO Website.

Local Publicity Opportunities

In addition to the use of the logo, ADB staff are urged to take all appropriate measures to encourage Recipients to ensure that JFPR-financed activities are well covered by local print and electronic media, and that all related publicity materials, official notices, reports and publications explicitly acknowledge Japan as the source of funding received. Below is a standard text suggested for use by those who prepare publicity materials: “The grant which financed this (name of activity) was received under the Japan Fund for Poverty Reduction which is financed by the Government of Japan.”

Many ADB Resident Missions periodically publish newsletters. New grant approvals, signing ceremonies, and major project activities should be publicized in these newsletters. Most country offices have External Relations staff. Project/TA teams are encouraged to consult with them on ways to increase the visibility of Japan regarding JFPR grants. Opportunities to publish articles on high visibility projects prepared with the JFPR TA and project grants should be explored and utilized. Project/TA teams are advised to brief the Country Directors about the implementation status of JFPR grants. Such information will help the Resident Missions

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highlight Japan’s contribution, where relevant, in their meetings and presentations in seminars and workshops. Ceremonial Events

Country Directors and the project/TA officers will receive notification of grant approvals and will be informed of the importance of signing ceremonies to Japanese officials and the public. At grant signing ceremonies and other publicity events, the ADB’s country-based staff are expected to foster the attendance and participation of country-based officials of the Embassy of Japan in a manner that provides due recognition of their donor status. Grant recipients should take the lead in organizing such ceremonies, and whenever possible, Recipients should issue the formal invitation to attend. Such ceremonial events should also be alerted to the media and publicity outlets referred to above. Participation of Japanese Entities in Implementation

To promote GOJ’s continued support for JFPR, it is also important to generate visibility for the project within Japan. One way of doing this is by encouraging the utilization of Japan’s human resources, expertise, financial resources and technologies in JFPR projects and TAs. Proposals that have the potential to involve Japanese NGOs, Civil Society Organizations, aid agencies like JBIC or JICA, private sector, and academic institutions can contribute to the visibility of JFPR and will thus be viewed favorably by reviewers in GOJ. Visibility from ADB Headquarters

Country-based ADB staff are requested to forward copies of all visibility material, such as press releases, newspaper and magazine articles, and photographs (including descriptive captions) to the following address: Japan Funds Team Rm. 7708-East Asian Development Bank 6 ADB Avenue, Ortigas Center Mandaluyong City 1550 Philippines

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GUIDANCE NOTE ON COORDINATION WITH THE EMBASSY OF JAPAN 1. Introduction • The Final Report on the Review of Japanese Official Development Assistance5 (ODA)

underscores the need for strategic and effective aid. One way to ensure alignment of JFPR projects and TAs with GOJ’s bilateral assistance strategy for a particular DMC is by bringing on board the comments and suggestions of the Embassy of Japan. Thus, under JFPR, project officers are required to consult with the local Embassy6

of Japan about the project proposal before submitting the TA Project Profile/Grant Proposal to OCO for processing. This Guidance Note provides detailed instructions regarding coordination activities with the Embassy of Japan.

2. Embassy of Japan (EoJ) Contact Persons • The names of EoJ contact persons and their contact details are listed in a table which is

posted in the OCO website. The list is provided to OCO by Japan’s Ministry of Finance and is updated from time to time. It is important to confirm the details in the table before contacting the embassy.

3. Role of the Resident Mission and OCO • Communications with EoJ should be done with cc. to the Resident Mission or the relevant

Country Officer at HQ and with OCO. If needed, RM’s assistance may be sought to arrange the meeting with EoJ.

• RM’s role is also crucial in arranging the Letter of Agreement signing event (item 6 below) and in overall coordination/relationship management with EoJ.

4. Consultation with the Embassy – Concept Stage • A meeting with the embassy contact person should be scheduled during the Fact-Finding

Mission. During the meeting, the concept paper or draft TA Project Profile must be explained to and discussed with the embassy officer, with a brief summary which outlines the proposal.

• The concept paper document or draft TA Project Profile should be submitted to the embassy at least seven working days before the consultation to give the embassy time to review the document.

• Efforts should also be made to meet with the JICA officer in the DMC. • Any comments made by the embassy and/or JICA should be reflected and a summary of

the consultation should be included in the final TA Project Profile or Project Grant Proposal as the case may be.

• The project officer should exert all efforts to meet with the embassy contact person. However, if a meeting with the embassy is not possible, email exchange, telephonic discussion or any other form of inter-active communication may be used. In such cases, an email containing the embassy's comments on the proposal should be sought and reflected in the final proposal.

5 Ministry of Foreign Affairs of Japan.2010 ODA Review - Summary of the Final Report. Tokyo 6 In the case of Regional Grants, officers are required to consult with ALL embassies mentioned in the proposal.

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5. Coordination with Embassy of Japan upon Approval of the Proposal • Once the proposal has been approved by ADB, the project officer should inform EoJ about

the approval. Project officers are strongly encouraged to stage signing ceremonies related to the Project Letter of Agreement or launching ceremonies, etc. in the field, with the attendance of EoJ officials.7

•

• In coordination with the Resident Mission (RM), the project officer should inform the EoJ as well as OCO – which will alert the Japanese authorities in Tokyo – at least ten working days in advance of the signing ceremony. The project officer should also draft a news release in consultation with the Department of External Relations and coordinate arrangements for the RM to invite the local and international press to these ceremonies.

6. Coordination with Embassy of Japan during Project Implementation and upon Project Completion • From time to time, the EoJ should be informed about project progress and milestones

especially when major changes in scope and objectives are required. Throughout all phases of the project, from concept to completion, the project officers should answer inquiries from EoJ regarding the project and discuss where necessary. Embassy officials may also wish to join progress review missions in order to see project results and to interact first-hand with project recipients.

• Project officers are also required to share information on the outcomes and lessons from

JFPR projects and TAs with the EoJ and JICA in the field to enable both sides to explore and seek potential collaboration.

7 Please refer to the Visibility Guidance Note for details on visibility requirements under JFPR

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APPENDIX 6 PROCUREMENT PLAN

Project Information

Project Name : Promoting Partnerships and Innovation in Poor and Underserved Communities Country: Philippines Executing Agency: National Housing Authority Implementing Agency: ABS CBN Foundation,

Inc. Grant Amount in US$: 1.5 million Grant Number: 9162 Date of First Procurement Plan: June 2012 Period Covered by this Plan: June 2012-

November 2013 1. Project Procurement Thresholds 1. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and consulting services.

Procurement Thresholds for Goods and Consulting Services Procurement Method Threshold (Value $) Shopping Goods Direct Contracting

Below 100,000 Below 10,000

Community Participation for Goods and Services Below 2,500 2. ADB Prior or Post Review 2. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement Method Prior or Post Comments Procurement of Goods Shopping Direct Contracting Community Participation

Post Post Post

IA secures three quotations to compare prices IA certifies availability of only one supplier

Shopping/Direct Contracting

Recruitment of Consulting Firms Fixed Budget Selection Prior IA to post in CSRN Least Cost Selection Prior IA to post in CSRN

Recruitment of Individual Consultants Individual Consultants (IC) Prior IA to post in CSRN for a minimum of 7 days and

shortlist at least 3 candidates 3. Goods Contracts Estimated to Cost Less Than US$ 1 Million and Consulting Services Contracts less than US$ 100,000 3. The following table groups smaller-value goods and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

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General Description Value of Contracts

(cumulative)

Number of

Contracts

Procurement/ Recruitment

Method

Expected Date of

Advertisement

Comments

Goods, Vehicles, Equipment and Supplies 1. Electrification materials 136,810 1 SHP 2nd – 3rd

Quarter 2012

2. Office equipment and furniture

10,600 2 SHP 4th Quarter 2012

3. Office supplies and communications

7,500 18 DC 2012-2013 For the duration of the project

4. Training reference and materials

32,400 54 DC 2nd Quarter 2012- 2013

5. Supplies for training, workshops and seminars

36,500 73 DC Starting 3rd Quarter 2012

Community participation

6. Supplies for meetings and consultations

20,000 200 DC Starting 2nd Quarter 2012

Community participation

7. Supplies for office refurbishing

2,500 1 DC 4th Quarter 2012

Community participation

8. Supplies and equipment for community facilities improvement

150,000 6 SHP/DC 1st – 2nd Quarter 2013

Community participation

Consulting Services 1. PPP Expert 13,200 1 ICS (National) 4th Quarter

2012

2. Resource Management Specialist

8,800 1 ICS (National) 4th Quarter 2012

3. Technical Advisers for PPP 4,400 2 ICS (National) 4th Quarter 2012

TOR to be prepared during grant implementation

4. Resource Persons for PPP 12,000 2 ICS (National) 4th Quarter 2012

TOR to be prepared during grant implementation

5. Social Entrepreneurship Specialist

13,200 1 ICS (National) 1st Quarter 2013

6. Community Development Specialist

17,600 1 ICS (National) 1st Quarter 2013

7. Community Organizers 42,240 4 ICS (National) 3rd Quarter 2012

8. Resource Persons for Capacity Development

15,000 2 ICS (National) 1st Quarter 2013

TOR to be prepared during grant implementation

9. Knowledge Management Specialist

17,600 1 ICS (National) 1st Quarter 2013

10. Project Manager 64,800 1 ICS (National) 4th Quarter 2012

11. Deputy Project Manager 54,000 1 ICS (National) 4th Quarter 2012

12. Financial Management Specialist

36,000 1 ICS (National) 4th Quarter 2012

13. Civil Works and Procurement Specialist

21,600 1 ICS (National) 4th Quarter 2012

14. Project Baseline Survey 10,000 1 FBS 4th Quarter 2012

SHP – Shopping, DC- Direct Contracting, ICS, Individual Consultant Selection, FBS – Fixed Budget Selection

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B. Indicative List of Packages Required Under the Project 4. 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 grant recipient and others should also be indicated, with an appropriate notation in the comments section.

General Description Estimated Value

(cumulative)

Estimated Number of Contracts

Procurement Method

Comments

1. Electrification materials 136,810 4 SHP 2. Solar street lights 38,400 1 SHP 3. E-trikes 60,000 1 SHP 4. Manuals (Printing) 3,300 2 SHP 5. Office equipment and furniture 10,603 2 SHP 6. Office supplies and communications

15,000 36 DC For the duration of the project

7. Information materials 1,800 1 DC 8. Training reference and materials

32,400 54 DC

9. Supplies for training, workshops and seminars

73,000 146 DC Community participation

10. Supplies for meetings and consultations

36,000 360 DC Community participation

11. Supplies for office refurbishing

2,500 1 DC Community participation

12. Supplies and equipment for community facilities improvement

150,000 6 SHP/DC

General Description Estimated Value

(cumulative)

Estimated Number of Contracts

Recruitment Method

Comments

1. PPP Expert 13,200 1 ICS (National) 2. Resource Management Specialist

8,800 1 ICS (National)

3. Technical Advisers for PPP 4,400 2 ICS (National) TOR to be prepared during grant implementation

4. Resource Persons for PPP 12,000 2 ICS (National) TOR to be prepared during grant implementation

5. Social Entrepreneurship Specialist

13,200 1 ICS (National)

6. Community Development Specialist

17,600 1 ICS (National)

7. Community Organizers 42,240 4 ICS (National) 8. Resource Persons for Capacity Development

15,000 2 ICS (National) TOR to be prepared during grant implementation

9. Knowledge Management Specialist

17,600 1 ICS (National)

10. Project Manager 64,800 1 ICS (National) 11. Deputy Project Manager 54,000 1 ICS (National) 12. Financial Management Specialist

36,000 1 ICS (National)

13. Civil Works and Procurement 21,600 1 ICS (National)

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Specialist 10. Monitoring and evaluation specialist

4,200 1 ICS (National)

14. Project evaluation study 10,000 1 FBS 15. External audit 3,600 1 LCS (National)

Appendix 7

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APPENDIX 7 PROCUREMENT PROCEDURES FOR GOODS

A. PROCUREMENT POLICIES 1. Except as ADB may otherwise agree, the procedures referred to in the following paragraphs

of this Appendix shall apply in the procurement of goods and services to be financed out of the grant or proceeds of the grant. In this document the term "goods" includes equipment and materials; and the term "services" does not include consulting services.

2. Procurement of goods and services shall be subject to the provisions of ADB Guidelines for

Procurement of Goods and Works (April 2010, or as amended from time to time) which have been furnished to the Executing Agency.

3. Procurement of goods and services shall be made without any restriction against or

preference for, any particular supplier or contractor or any particular class of suppliers or contractors, except as otherwise provided in this Appendix.

4. As contracts are expected to be small, international contracts are not likely to be interested

and international competitive bidding will not be required. Civil works contracts will be undertaken by force account and grant proceeds will generally be used to procure construction supplies and materials with the local community providing labor services. Hence, there will be no procurements done through national competitive bidding.

5. The Grant recipients shall ensure that all ADB-financed goods and services procured

(including all computer hardware, software and systems, whether separately procured or incorporated within other goods and services procured) do not violate or infringe any industrial property or intellectual property right or claim of any third party.

B. PROCUREMENT ORGANIZATION 6. In order to promote transparency in all procurement activities, there will be two procurement organizations for the project. The central procurement team will be responsible for all major purchases under the approved procurement plan. This shall be composed of the project Procurement Specialist, the AFI representatives in charge of procurement and financial management. A community based procurement team shall also be organized composed of the Procurement Specialist, a Community Development Specialist and a duly designated representative of the Homeowners Association (for CAF sub-projects) or the Community Based organizations (for CIF sub-projects) for smaller procurements available within the community. Both teams shall assist the PIU in procurement related activities and shall be in charge of activities required to acquire all the supplies, materials, equipment, from suppliers and contractors such as: preparation of procurement documents that include among others description and quantity of goods and desired delivery date; conduct of canvas of known suppliers and contractors, receipt and recording of bids/quotations, evaluation of bids/quotations, recommendation of award to Project Manager; preparation of minutes of meetings and posting of notices of award. 7. Community based volunteers or members of Procurement Team who have no knowledge of procurement regulations shall be provided with an orientation and training in procurement procedures to be used for specific contracts. In the course of procurement implementation,

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job coaching and technical assistance shall be provided to community volunteers on procurement and contract management in order to develop local capacity and ensure sustainability. C. METHODS OF PROCUREMENT 8. Shopping Method. Shopping is a procurement method based on comparing price quotations obtained from several suppliers (in the case of goods) with a minimum of three, to assure competitive prices, and is an appropriate method for procuring readily available off-the-shelf goods or standard specification commodities of small value, or simple civil works of small value. This may be done for goods procured by the Central Procurement Team or the Community Based Procurement Team for goods available locally within the community. A sample request for quotation and form of contract are provided at the end of this Appendix. The threshold for Shopping is set below $100,000 for the supply of goods. 9. Direct Contracting. Direct contracting is contracting without competition when there is only one known available supplier for the goods to be procured either at the national or local level. The threshold for direct contracting is set below $ 10,000. 10. Community Participation. Community participation is a method employed when it is desirable in selected project components to (a) call for the participation of local communities and/or nongovernmental organizations (NGOs) in the delivery of services, or (b) increase the utilization of local know-how and materials, or (c) employ labor-intensive and other appropriate technologies. Procurement procedures shall follow ADB Project Administration Instruction No. 5.10 (January 2011 or as amended from time to time) on implementing small projects with community participation. D. PROCUREMENT PROCEDURES Shopping 11. The Central or Community Based Procurement Team shall prepare requests for quotations indicating the description (standards and technical specifications) and quantity of the goods as well as desired delivery (or completion) time and place. Standards and technical specifications shall promote the broadest possible competition while assuring the critical performance or other requirements for the goods under procurement. Where possible, internationally accepted standards shall be specified or where such are unavailable, national standards. Specifications shall be based on relevant characteristics and/or performance requirements. References to brand names, catalog numbers, or similar classifications shall be avoided. If it is necessary to quote a brand name or catalog number of a particular manufacturer to clarify an otherwise incomplete specification, the words “or equivalent” shall be added after such reference. The specification shall permit the acceptance of offers for goods which have similar characteristics and which provide performance at least substantially equivalent to those specified. 12. Quotations may be submitted by letter, facsimile or by electronic means. The Central Procurement Team shall post the request for quotation in the AFI website or for community based procurements in a duly designated area within the premises of the PIU. The evaluation of quotations shall follow the same principles as of open bidding where award is made to the quotation with the lowest evaluated cost. The terms of the accepted offer shall be incorporated in a purchase order or brief contract a sample of which is found in this

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Appendix. 13. Upon determination of supplier with the lowest evaluated cost, the Procurement Team shall post the notice of award in the AFI website or in the designated area within the PIU. The information shall include the name of the winning supplier, the offer price, duration and summary of scope of the contract awarded. Direct Contracting 14. The Procurement Team shall exert every effort to determine that there is only one local supplier available and it is more economical to buy from this supplier and that the estimated cost and offer price are in line with local market rates based on data base maintained by the PIU. In such cases, ADB should be satisfied that the price paid is reasonable. Community Participation 15. The Community Based Procurement Team shall determine the appropriate method of procurement to be used based on the type of goods or services to be purchased.

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REQUEST FOR QUOTATION OF GOODS

ABS CBN Foundation Inc. Promoting Partnerships and Innovation in Poor and Underserved Communities

Date of Request : __________ Quotation Reference No. ____

To: Company Name and Address Sir:

1. The _______________________ (Purchaser) hereby requests you to submit price quotations for the following items: i. _____________________________________ ii. _____________________________________ iii. _____________________________________ iv. _____________________________________ To assist you in the preparation of your price quotation, we enclose the necessary technical specifications and required quantities. 2. You may quote for any or more items under this request. Each item shall be evaluated and contract awarded separately to the firm(s) offering the lowest evaluated price for each item. (Option: You must quote for all the items under this request. Price quotations will be evaluated for all the items together and contract awarded to the firm offering the lowest evaluated total cost of all the items). 3. You shall submit one original of the Price Quotation with the Form of Bid, and clearly marked “Original”. In addition, you shall also submit one copy marked as “COPY”. Your quotation in the attached format should be sealed in an envelope (or submitted by facsimile or electronic mail) and addressed to and delivered to the following address: Purchaser’s Address: _____________________ Telephone : _____________________ Fax : _____________________ E-mail Address : _____________________ 4. Your quotation in duplicate and in the English language, should be accompanied by adequate technical documentation and catalogue(s) and other printed materials or pertinent information in English for each item quoted, including names and addresses of firms providing after sales service facilities in the Philippines. 5. The deadline for receipt of your quotation (s) by the Purchaser at the address indicated in Paragraph 3 is : ____________ 6. Your quotation(s) should be submitted as per the following instruction and in accordance with the attached Contract. The attached Terms and Conditions of Supply is an integral part of the Contract.

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(i) Prices: The prices should be quoted for supply and delivery to ______________ (Place of destination). (ii). Evaluation of Quotations: Offers determined to be substantially responsive to the technical specifications will be evaluated by comparison of their prices. In evaluating the quotations, the Purchaser will adjust any arithmetical errors as follows: (a) where there is a discrepancy between the amounts in figures and in words, the amount in words will govern; (b) where there is a discrepancy between the unit rates and the line item total resulting from multiplying the unit rate by the quantity, the unit rate as quoted will govern; (c) if a Supplier refuses to accept the correction, his quotation will be rejected. In addition to the quoted price, the evaluated price shall include Value Added Tax. (iii) Award of Purchase Order: The award will be made to the bidder offering the

lowest evaluated price that meets the required standards of technical and financial capabilities. The successful bidder will sign a contract as per attached form of contract and terms and conditions of supply. (iv) Validity of the Offer: Your quotation(s) should be valid for a period of forty five (45) days from the deadline for receipt of quotation(s) indicated in paragraph 5 of this Request for Quotation. (v) If you withdraw your quotation during the validity period and/or refuse to accept the award of a contract when and if awarded, then you will be excluded from the list of suppliers for the project for two years.

7. Further information can be obtained from: __________________________________ Telephone : _____________________ Fax : _____________________ E-mail Address : _____________________ 8. The Purchaser intends to apply funds from the Asian Development Bank (ADB) for eligible payments under the Purchase Order resulting from this RFQ. 9. Under ADB’s Anticorruption Policy, bidders shall observe the highest standards of ethics

during the procurement and execution of such contracts. ADB will reject a proposal for award, and will impose sanctions on parties involved, if it determined that the bidder recommended for award or any other party, has engaged in corrupt, fraudulent, collusive or coercive practices in competing for, or in executing the Contract.

10. Please confirm by fax/e-mail the receipt of this request and whether or not you will submit the price quotation(s) Sincerely, Name and Signature of Purchaser

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ABS CBN Foundation Inc.

Promoting Partnerships and Innovation in Poor and Underserved Communities

FORM OF QUOTATION To: _______________________________ (Purchaser’s Name) _______________________________ (Purchaser’s Address) We offer to execute the ____________________________________ (name and number of Contract) in accordance with the Conditions of Contract accompanying the Quotation for the Contract Price of _________________________ (amount in words and numbers) (_________). (name of currency) __________. We propose to complete the delivery of Goods described in the Contract within the following Delivery Time from the Date of the Signing of the Contract. Prices and Schedules for Supply S. No. Item No, Quantity Unit Price Total Price Delivery Time 1. 2. Spare Parts } Tools and Accessories } Manuals } Specify, if applicable Maintenance Requirements } This Quotation and your written acceptance will constitute a binding Contract between us. We understand that you are not bound to accept the lowest or any Quotation you receive. We hereby confirm that this Quotation complies with the Validity of the Quotation and Warranty Conditions required for the Request for Quotation document. Authorized Signature: __________________________ Name and Title of Signatory: ____________________ Name of Supplier: _____________________________ Address: ____________________________________ Phone Number: ______________________________ Fax Number, if any: ___________________________

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ABS CBN Foundation Inc. Promoting Partnerships and Innovation in Poor and Underserved Communities

FORM OF CONTRACT

THIS AGREEMENT number ____ made on________, ____, 200_, between _______________________(hereinafter called “the Purchaser”) on the one part and _______________________(hereinafter called “the Supplier”) on the other part. WHEREAS, the Purchaser has requested for quotation for ______________ (description of goods) to be supplied by the Supplier, viz. Contract ____, (hereinafter called “Contract”) and has accepted the Bid by the Supplier for the supply of goods under Contract at the sum of __________ (____________________) hereinafter called “the Contract Price”). NOW THIS AGREEMENT WITNESSETH AS FOLLOWS: 1. The following documents shall be deemed to form and be read and construed as part of this agreement, viz: a. Request for Quotation; Terms and Conditions of Supply, Technical Specifications: b. Addendum (if applicable); 2. Taking into account payments to be made by the Purchaser to the Supplier as hereinafter mentioned, the Supplier hereby concludes an Agreement with the Purchaser to execute and complete the supply of goods under the Contract and remedy any defects therein in conformity with the provisions of the Contract. 3. The Purchaser hereby covenants to pay, in consideration of the acceptance of Contract, supply and delivery of the goods and remedying of defects therein, the Contract Price in accordance with Payment Conditions prescribed by the Contract. IN WITNESS whereof, the parties hereto have executed the Contract under the laws of the Philippines on the date indicated above. Signature and Seal of the Purchaser: Signature and Seal of the Supplier: FOR AND IN BEHALF OF FOR AND IN BEHALF OF ____________________________ ____________________________ Name of Authorized Representative Name of Authorized Representative

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ABS CBN Foundation Inc. Promoting Partnerships and Innovation in Poor and Underserved Communities

TERMS AND CONDITIONS OF SUPPLY

Project Name:________________________ Purchaser: ____________________ Consignee: ________________________ Package No. __________________ 1. Schedules for Supply S. No. Item No. Quantity Delivery Time 1. 2. Spare Parts } Tools and Accessories } Manuals } Specify, if applicable Maintenance Requirements } 2. Fixed Price: The prices indicated above are firm and fixed and not subject to any adjustment during contract performance. 3. Delivery Schedule: The delivery should be completed as per above schedule but not exceeding _____ months from the date of signing of contract. 4. Insurance: The Goods supplied under the Contract shall be fully insured in a freely convertible currency against loss of damage incidental to manufacture or acquisition, transportation, storage and delivery. The insurance shall be in an amount equal to 110 percent of the value of the Goods on “All risks” basis. 5. Resolution of Disputes: The Purchaser and Supplier shall make every effort to resolve amicably by direct informal negotiation any disagreement or dispute between them under or in connection with the Contract. In the case of a dispute between the Purchaser and Supplier, the dispute shall be settled in accordance with the provisions of the Republic Act No. 9285, otherwise known as the “Alternative Dispute Resolution Act of 2004”. 6. Delivery and Documents: Upon delivery/shipment, the Supplier shall notify the Purchaser and the Insurance Company by fax or email the full details of the delivery/shipment, including purchase order number, description of goods, quantity, the Shipping Details (if applicable). The Supplier shall mail the following documents to the Purchaser, with a copy to the Insurance Company: a. copies of the Supplier’s invoice showing goods’ description, quantity, unit price, and total amount; b. copies of the packing list identifying contents of each package; c. manufacturer’s or supplier’s warranty certificate; d. certificate of origin; e. certificate of quality. 7. The above documents shall be received by the Purchaser at least one week before arrival of the goods at the port or place of arrival and, if not received, the Supplier shall be responsible for any consequent expenses.

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8. Payment for your invoice will be made: a. 80% against delivery of shipping documents, (Optional: through an irrevocable and confirmed Letter of Credit, opened by __________( Name of Philippine Bank) in favor of the _______________ (Supplier’s Bank); and b. 20% upon receipt by the Purchaser of the delivered goods. 9. Warranty: Goods offered should be covered by manufacturer’s warranty for at least 12 months from the date of delivery to Purchaser. 10. Packing and Marking Instructions: The Supplier shall provide standard packing of the goods as required preventing its damage or deterioration during transit to its final destination, as indicated in the Contract. 11. All defects shall be corrected without any cost to the Purchaser within 30 days from the date of notice of the Purchaser. The name and address of service facility where the defects are to be corrected by the supplier within the warranty period are: ____________________ Address: ________________________ 12. Force Majeure: The Supplier shall not be liable for penalties or termination for default if and to the extent that its delay in performance other failure to perform its obligations under the Contract is the result of an event of Force Majeure. For purposes of this clause, “Force Majeure” means an event beyond the control of the Supplier and not the Supplier’s fault or negligence and not foreseeable. Such events may include, but not be restricted to, act of the Purchaser in its sovereign capacity, wars or revolutions, fires, floods, epidemics, quarantine restrictions and freight embargoes. If a Force Majeure situation arises, the Supplier shall promptly notify the Purchaser in writing of such condition and the cause thereof. Unless otherwise directed by the Purchaser in writing, the Supplier shall continue to perform its obligations under the Contract as far as is reasonable practical, and shall seek all reasonable alternative means for performance not prevented by Force Majeure event. 13. Required Technical Specifications: (i) General Description (ii) Specific details and technical standards (iii) Performance Parameters Supplier confirms compliance with above specifications (Note: In case of deviations, Supplier to list all such deviations) 14. Failure to Perform: The Purchaser may cancel the Agreement if the Supplier fails to deliver the Goods, in accordance with the above terms and conditions, in spite of a 21 days notice given to the Purchaser, without incurring any liability to the Supplier. Printed Name and Signature of Supplier: ____________________ Place and Date:____________

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ABS CBN Foundation Inc. Promoting Partnerships and Innovation in Poor and Underserved Communities

PURCHASE ORDER

Name of Supplier:

Purchase Order No. Date Prepared:

Address:

Delivery Instructions:

Telephone No.: Fax No.:

Contact Person: PIU Contact Person: Terms of Payment: Delivery Date: Telephone No.: Fax No.:

Place of Delivery: TIN: Method of Procurement: Quantity Unit of

Measure Description Unit

Cost Amount

Prepared by:

Signature over Printed Name

Recommending Approval: Approved by: Signature over Printed Name Signature over Printed Name

Note: The Purchase Order No. must appear on invoices, delivery receipts and other shipping documents

We accept this purchase order subject to the terms and conditions stated therein:

Supplier’s Signature over Printed Name

Appendix 8

46

APPENDIX 8 SELECTION AND ENGAGEMENT PROCEDURES FOR CONSULTANCY SERVICES

A. PROCUREMENT POLICIES 1. The services of consultants shall be utilized in the carrying out of the Project, particularly with regards to:

i. Public Private Partnerships; ii. Social Entrepreneurship; iii. Community Organizing and Development iv. Capacity Development; and v. Knowledge Management iv. Monitoring, Evaluation, Management, and Administration

2. The terms of reference of the consultants shall be as determined by agreement between ADB and the Recipient. 3. The selection, engagement and services of the consultants shall be subject to the provisions of this Appendix and the provisions of the "Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers" dated April 2010 (hereinafter called the Guidelines on the Use of Consultants), as amended from time to time, which have been furnished to the Recipient. 4. Selection and engagement of the consultants shall be made without any restriction against, or preference for, any particular consultants or any particular class of consultants. 5. The consultants shall be selected and engaged individuals by the IA using Individual Consultant Selection, Fixed Budget Selection and Least Cost Selection, in accordance with the ADB's Guidelines on the Use of Consultants, Project Administration Instructions (PAI) 2.03 on General Procedures for Selecting and Engaging Consultants and PAI 2.05 on Specific Requirements for Recruiting Consultants by the Executing Agency, and other arrangements satisfactory to ADB for engaging national consultants. B. GENERAL PROCEDURES 6. The specific responsibilities of the IA in recruiting and administering consulting services are as follows: (a) prepare the procurement plan for the entire project, consultant recruitment plan for each recruitment, terms of reference (TOR) and cost estimate; (b) undertake recruitment actions including shortlisting, preparing and issuing requests for proposal (RFP) when applicable; evaluating the proposals when proposals are required; and negotiating and signing the contract with the selected consultants; (c) supervise and manage the implementation of the consultant contract. 7. To ensure transparency in selecting consultants, ADB requires the recruiting party to advertise all consulting services assignments. A consulting services recruitment notice (CSRN) is posted in the “Business Opportunities” section of ADB’s website. The CSRN includes information on the terms of reference (TOR), cost estimate, selection method, and time frame for recruitment, as defined in the consultant recruitment plan. The CSRN allows

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time for consultants to submit an expression of interest (EOI) and is usually posted on ADB’s website for 30 days for recruiting firms, and for a minimum of 7 days for recruiting individual consultants. 8. Depending on the services, consultants submit an Expression of Interest (EOI) as an individual or an entity. Individual consultants offer up-to-date information on how their qualifications and experiences conform to the TOR requirements. Firms or joint ventures highlights its most recent projects and geographical experiences relevant to the TOR, as well as its management capacity. C. SELECTION AND RECRUITMENT METHODS 9. Individual Consultant Recruitment. Individual consultants are recruited directly for some assignments based on how closely their qualifications and experience conform to the TOR

requirements as they are more appropriate and cost-effective than firms. Individual consultants may be recruited directly (independent individual) or through an organization, such as a consulting firm, an academic institution, a government, or an international agency by a borrower or ADB. When the grant recipient recruits national consultants, agreements are reached as early as possible and in any case before grant approval on (i) the type of consultant best suited for the assignment, (ii) the applicable procedure.

10. Individual consultant recruitment does not require submission of proposals. Before an individual consulting assignment is scheduled to start, the IA prepares a short list of at least three qualified candidates. At the EA’s request, the project unit may provide the names and qualifications of suitable candidates from the CMS. The EA may also advertise for suitable candidates, in addition to the CSRN posting requirement. The IA ranks the candidates and submit their names and qualifications, with the draft contract, to ADB (through the project unit) for approval. The project unit: (a) reviews the EA’s submission documents; (b) consults with COSO, if necessary, after identifying concerns; (c) requests comments from CTL, OGC, and/or other department or office after identifying concerns;(d) approves the EA’s submission or identifies needed revisions, changes, or amendments that the project unit considers necessary; (e) prepares a note to file summarizing the issues raised and the decisions taken; and (f) advises the EA of ADB’s decision. 11. After ADB approves the ranked short list and the draft contract, the IA negotiates with the first-ranked candidate. If the negotiations fail, the IA obtains ADB’s approval to terminate the current negotiations and start negotiations with the next-ranked candidate, and so on until agreement is reached. The IA then sends a copy of the draft negotiated contract to ADB (through the project unit) for approval. 12. Fixed Budget Selection. Fixed budget selection (FBS) is appropriate only when (i) the TOR are precisely defined, (ii) the time and personnel inputs can be accurately assessed, and (iii) the budget is fixed and cannot be exceeded. To reduce the financial risk for consultants and avoid receiving unacceptable technical proposals or no proposals at all, this method can only be used for well-defined TA projects or projects where it is expected there will be no changes during implementation. 13. Least Cost Selection. Least-cost selection is only appropriate for selecting consultants for very small assignments, of a standard or routine nature (audits, engineering design

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supervision of simple projects, and simple surveys) where well-established practices and standards exist. 14. The following are the general procedures for recruiting consulting firms under Fixed Budget Selection and Least Cost Selection with a flow chart of activities found in this Appendix 8: (i) Prepare the Consultant Recruitment Plan and obtain the required approval. (ii) Advertise the assignment and receive EOIs; (iii) Prepare the long list, short list, evaluation criteria, RFP and Consultant Recruitment Activities Monitoring Sheet (PAI 2.05 Appendix 7a), known as Submission 1 (Shortlisting of Consulting Assignments), found in PAI 2.05 Appendix 8a, pp. 1-6, and obtain the required approval; (iv) Send the RFP to the shortlisted firms and invite their technical and financial proposals in separate sealed envelopes, following the RFP submission requirements and deadline. The RFP indicates the budget ceiling for the assignment and the firms submit their best technical proposal, whose cost should be within the budget ceiling. The IA may clarify or amend the RFP and TOR; (v) Receive proposals and securely store the financial proposals, which remain unopened until the public opening; (vi) Open and evaluate the technical proposals using the RFP evaluation criteria and scoring system known as Submission 2, Evaluation of Technical Proposals found in PAI 2.012 Appendix 8e, pp. 1-5, and obtain the required approval on the technical evaluation results; (vii) Notify all firms whose technical proposals failed to obtain the minimum qualifying score (750 points) about such failure, and invite firms whose technical proposals obtained a score of at least 750 to the public opening; (viii) Conduct the public opening of financial proposals using the same procedure for public opening for QCBS. Proposals with total cost exceeding the budget are rejected; (ix) Evaluate the financial proposal of the firm that received the highest score for its technical proposal and verify the price of the financial evaluation using the same methodology for QCBS, except that no calculation of the financial score is required. If the evaluated price exceeds the budget, the firm will be disqualified and the financial evaluation will continue with the proposal that has the second highest technical score, until a firm is selected; (x) Prepare an evaluation report known as Submission 3 Evaluation of Financial Proposals PAI 2.05 Appendix 8f, pp. 1-5, recommending the selected firm and obtain the required approval; (xi) Invite the selected firm to contract negotiations. During the negotiations, the recruiting party may only make minor changes in the TOR, the consultant’s inputs, and the quantities of expenses. The recruiting party normally cannot change the consultant’s remuneration and expenses. A lump sum contract may be considered; (xii) If the negotiation succeeds, obtain the required approval for the negotiated contract known as Submission 4 Draft Negotiated Contract, PAI 2.05 Appendix 8g, pp. 1-2 or Appendix 8 h, p. 1, whichever is applicable; otherwise, obtain the required approval for inviting the next ranked firm to negotiate, and repeat the process from step (xi). (xiii) Issue a notice-to-proceed to the contracted firm for mobilizing the team; (xiv) Return the unopened financial proposals to consultants whose technical proposals scored less than 750 points. When CMS is used, these financial proposals

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remain encrypted; (xv) Notify all competing/participating firms of the contract award and, if so requested, verbally debrief, either face-to-face or through telecommunication shortlisted firms by appointment. The debriefing is limited to the evaluation of the proposal submitted by the firm that requested debriefing. D. ANTICORRUPTION 15. ADB's anticorruption policy requires grant recipients and consultants under ADB-financed

contracts to observe the highest ethical standards. If ADB determines that representatives of a grant recipient, a beneficiary or a consultant engaged in corrupt, fraudulent, collusive, or coercive practices during consultant selection or the execution of a contract, ADB may take any of the steps set out in the Guidelines on the User of Consultants by the Asian Development Bank and its Borrowers, paragraph 1.23. Allegations of corrupt, fraudulent, collusive or coercive practice may be reported to the Integrity Division of the Office of the General Auditor or ADB. .

16. Details on recruitment guidelines and related procedures can be accessed through this link: Guidelines on the Use of Consultants by the Asian Development Bank.

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Appendix 9

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APPENDIX 9 DETAILS OF REQUIRED CONSULTING SERVICES AND OUTLINE TERMS OF

REFERENCE

1. The consulting team for the Japan Fund for Poverty Reduction project will consist of national consultants, to be recruited by the Implementing Agency (IA). Each consultant will work with the PIU in developing identified outputs. The consultants will take into account the relevant ADB handbooks, especially the one on poverty and social analysis, the social protection strategy, and ADB's policy on gender and development. The specific technical tasks associated with each consultant are outlined below. A. Individual Consultants 2. Public Private Partnership (PPP) Expert. (44 person days) The PPP expert will assist the AFI and PIU in the development of practical and workable models for public private partnerships for underserved communities that can be applied by other similar projects; help assess the level of PPP arrangements, identify risks, issues and concerns; and recommend possible measures to address these issues and concerns. The specific responsibilities of the consultant are as follows:

a. Design the framework for public-private partnership in a relocation site/underserved community based on the experience of BayaniJuan; b. Recommend national and local policies, laws and issuances or the revision of such to encourage and support public-private partnerships in delivering basic services to poor and underserved communities; c. Identify roles and responsibilities best undertaken by each stakeholder as well as areas of cooperation and consensus. d. Recommend the appropriate models for organizational and management structures to govern such PPP arrangements;

Qualifications: 1. Graduate of undergraduate or graduate degree in public administration or development management or community development or other related course; 2. At least eight years practical experience in implementing PPP projects for underserved communities; 3. Familiarity with and working knowledge of policies, procedures and systems of both government and private on public private partnership arrangements for social development; 4. Skilled in writing reports and preparing presentations.

Outputs/Deliverables: 1. PPP Framework and Business Plan for expanding and sustaining partnerships in underserved communities; 2. ‘Trainer’s training’ PPP Toolkit consisting of practical instruments that will assist those actually involved in project preparation and implementation.

3. Manual detailing policies and implementing guidelines for PPP in underserved communities. 4. Document major risks, issues and concerns on PPPs and recommend measures to

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address these risks. 3. Resource Mobilization Specialist . (44 person days) The Resource Mobilization Specialist will help identify possible resource requirements to sustain existing efforts within the project site and possible sources of financing support; recommend measures and approaches to identify and tap these financial sources for inclusion in the PPP framework and Business Plan. The specific responsibilities of the consultant are as follows:

a. Identify new sources of funding for additional items of expenditure for the project such as construction and upgrading of additional infrastructure requirements; operating funds for health facilities, social services and programs; livelihood/ industrial park; public cemetery or crematorium;

b. Develop proposals, grant applications, donor packages for submission to prospective funding agencies/donors; c. Supervise and monitor the preparation of arrangements, reporting systems, and general implementation requirements of the grant/donor agreements; d. Provide inputs to the PPP Framework and business plan on mobilizing resources for such projects. Qualifications: 1. Graduate of undergraduate or graduate degree in marketing or business administration, or communication arts or other related courses; 2. At least eight years experience in fund raising work as senior staff and handling top accounts 3. Ability to write and package proposals, knowledge of desktop publishing; presentation skills is a must.

Outputs/Deliverables: 1. Plan to mobilize resources to increase financial support and contributions in cash or in kind from different stakeholder groups by at least 25%; 2. Submitted grant proposals to funding institutions to cover unfunded project activities in environment, education and health 3. List of possible sources of financing and support for PPP pilot project and other Infrastructure and social development projects and identification of requirements to tap the identified sources; 4. Assistance in the preparation of pre-investment studies for pilot PPP project; 5. Inputs to PPP Framework and business plan on resource mobilization. 5. Resource Persons for PPP. (60 person days)To be identified in the course of grant

implementation. 6. Social Entrepreneurship Specialist. (66 person days) The Social Entrepreneurship Specialist will assist in building the capacity of Southville 7 residents gain access to employment and livelihood opportunities and recommend measures to improve and expand home based industries and businesses. He/she will also provide training in quality control and management, costing and pricing, product sourcing, packaging, marketing, financial management and recommend measures or approaches to improve existing business practices. The specific responsibilities of the consultant are as follows:

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a. Provide consultancy and advice on scaling up existing livelihood initiatives and on setting up small scale businesses; b. Prepare business plan for identified individual livelihood initiatives (6 projects); c. Provide training where possible on quality control, costing, pricing, packaging and marketing; d. Recommend measures to improve existing business practices; e. Monitor and provide consultancy to each business group and AFI for the growth of each business; f. Develop guidelines and procedures for social enterprise development and livelihood assistance. Qualifications: 1. Graduate of graduate degree in business development course or other related courses; 2. At least eight years experience in social enterprise and cooperative development and community based livelihood projects 3. Ability to take a livelihood project from inception to profitability, to analyze situations and provide solutions;

Outputs/Deliverables: 1. Business plan for identified communal or individual livelihood initiatives; 2. Business plan for proposed factories that can be established in the community; 3. Trained a minimum of 30% of residents on livelihood and business development 4. Advised a minimum of 30% of residents on livelihood and business opportunities 5. Increased profitability of home based businesses by at least 30% 6. Guidelines and procedures for social enterprise development for inclusion in the CIF manual. 7. Community Development Specialist. (88 person days) The Community Development Specialist will be responsible for coordinating the work of all the community organizers in developing the competencies of residents and leaders to plan, manage, implement and monitor community driven development (CDD) projects and to manage and sustain community investments and social enterprise development and livelihood assistance undertakings under the CIF. The specific responsibilities of the consultant are as follows: a. Coordinate the work of community organizers in establishing functional linkages with existing CBOs and in organizing new HOAs and CBOs in the respective sites; b. Consolidate the training needs assessment results and prepare a master plan for community capacity building particularly for officials of HOAs and CBOs; c. Coordinate the implementation of needs based knowledge and skills enhancement programs for residents and officials of HOAs and CBOs in such areas as social protection for women and children, leadership, visioning and action planning, project management and such others as may be identified in the course of training needs assessment; d. Develop policies and procedures for community needs assessment, community plan preparation, updating and implementation and appropriate training programs for capacity building;

e. Oversee operations of sectoral groups.

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Qualifications: 1. Graduate of undergraduate or graduate degree in community development, social work or related courses; 2. At least eight (8) years of intensive experience in community organization work, training and community development plan preparation 3. Ability to demonstrate competence in the following areas: community organization, research, training management, communication, computer literacy, creativity/ innovativeness, human relations, stress management, networking/linkage development

Outputs/Deliverables: 1. Community training needs assessment report 2. Master plan for community capacity building 3. Identified community training programs implemented 4. Policies and procedures for community plan preparation and implementation 5. Compilation of all documentation on community capacity building, baselines and monitoring and evaluation results 8. Community Organizers (4). (528 person days) The Community Organizers assigned to different areas and sectors within Southville 7 will organize and mobilize the resident to promote institution building, participatory governance and the development of social enterprises. They will also assist in strengthening the effectiveness of newly established Homeowners Associations (HOAs) and Community Based Organizations (CBOs). The specific responsibilities of the consultant are as follows: a. Conduct assessment/environmental scanning in coordination with community leaders and members; b. Coordinate with barangay officials to facilitate community involvement in activities implemented within the community (e.g. cleanliness campaign, job opportunity seminars/trainings, community celebrations, film showings, recollections, community mass, etc.). c. Organize core groups to assist in project implementation, monitoring and evaluation. d. Conduct orientation for incoming relocates and assist them in their needs; e. Conduct regular block leaders’ meeting and assist in resolving block & community issues. f. Provide advice and guidance to leaders/officers in their conduct of community affairs; g. Coordinate with NHA, AFI programs and other service providers on basic services, communicating the needs, suggestions and feedback of the community; h. Facilitate conduct of trainings for leaders to increase their capacity and capabilities; i. Conduct dialogues on community issues, programs & services. j. Monitors together with community leaders the status and welfare of families within the community with emphasis on the more vulnerable members; k. Update/maintain all documents/data related to the implementation of projects and/or activities in the community.

Qualifications:

1. Graduate of BS Community Development, Social Work or related courses; 2. At least two (2) years of intensive experience in community organization work and

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relevant additional training in sector/area assigned 3. Ability to demonstrate competence in the following areas: community organization, research, training management, communication, computer literacy, creativity/innovativeness, human relations, stress management, networking/linkage development.

Outputs/Deliverables: 1. Site/sector training needs assessment report 2. Site/sector inputs to master plan for community capacity building 3. Identified community training programs implemented 4. Records management and documentation systems for site/sector related information on community capacity building, baselines and monitoring and evaluation results 5. Established sustainable (economically viable, trained and skilled in community governance) community groups at the end of project 9. Resource Persons for Community Capacity Building. (60 person days) To be identified in the course of grant implementation. 10. Knowledge Management Specialist. (88 person days) The Knowledge Management Specialist will help improve the existing education and training programs in Southville 7 using modern methodologies, techniques and strategies that will respond to the practical and identified needs of the community. The specific responsibilities of the consultant are as follows: a. Develop appropriate models for non-formal, alternative education (curricula/course designs, materials, teaching and training evaluation methodologies) incorporating community needs, needs for behavior change, as well as employment and livelihood and recommend implementation strategies; b. Evaluate the different training and capability building programs to measure effectiveness and recommend measures and approaches to respond to areas of weakness or improvement; c. Identify and recommends educational resources that can be tapped by the community to sustain its training and educational requirements. d. Consolidate knowledge created in the project. Qualifications 1. Graduate of graduate degree in education or other related courses; 2. At least eight years experience in developing educational programs and curricula for training and capacity building. 3. Must possess the following: excellent interpersonal and teaching skills

Outputs/Deliverables: 1. Knowledge management plan and implementation strategy 2. Policies and procedures to improve knowledge management relevant to community needs 11. Monitoring and Evaluation Specialist. (6 person months) The Monitoring and

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Evaluation Specialist will help determine project results through a project monitoring system, documentation of project processes, achievements and lessons learned as well as the impact of piloted PPP models. The specific responsibilities of the consultant are as follows:

a. Develop a project performance monitoring system that will document project processes, achievements and lessons learned; b. Provide close monitoring and implementation support to ensure accomplishment of intended results, transfer of knowledge to the community and partner government agencies, and smooth execution of the project’s exit strategy; c. Identify strengths, weaknesses, opportunities, and threats and provide recommendations for scaling up and replicating models and interventions tested by the project; d. Provide inputs to project completion reports. Qualifications: 1. Graduate of undergraduate degree in economics, business, industrial engineering or other related courses; 2. At least eight years experience in developing performance monitoring and evaluation systems for community based projects and in project impact assessment

3. Must possess excellent analytical and writing skills Outputs/Deliverables: 1. Project performance monitoring system 2. Project evaluation study instruments and report 3. Inputs to project completion report

12. Project Manager. (36 person months) The Project Manager will have overall responsibility for the proper administration and implementation of all project activities and monitoring and reporting of project results and impact. The specific responsibilities are as follows: a. Supervise, coordinate and administer the planning and implementation of project activities; b. Provide guidance and supervision for the activities of PIU staff and consultants; c. Establish an appropriate management system, including guidelines and procedures, for enhanced accountability and transparency in project implementation; d. Oversee the preparation of CAF and CIF guidelines and procedures and operations and management systems for solar street lights, community facilities, sewerage and solid waste management facilities, e-trike among others; e. Supervise the preparation of required project progress and completion reports f. Assess the impact of piloted models and interventions in collaboration with the Government, EA, IA, PIU, target groups, and stakeholders on private sector and civil society engagement in the delivery of basic services to poor and underserved communities; Qualifications: 1. Graduate of undergraduate or graduate degree in economics, business, management, social sciences, engineering or other related courses;

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2. At least ten years experience in the management and implementation of multi- stakeholder community development projects similar to the project with strong focus on public private partnerships 3. Must possess strong leadership, managerial and interpersonal skills Outputs/Deliverables: 1. Monitorable outputs discussed in each project component 2. Required project management systems for accountable and transparent implementation

3. Required guidelines, procedures, operations and management systems identified 4. Project progress and completion reports, financial and audit reports

13. Deputy Project Manager. (36 person months) The Deputy Project Manager will assist the Project Manager in the administration and implementation of all project activities and monitoring and reporting of project results and impact. The specific responsibilities are as follows: a. Assist in the supervision, coordination and administration of project activities; b. Assist in the establishment of appropriate management systems, including guidelines and procedures; c. Monitor progress of project activities and prepare all required periodic reports and multimedia documentation of project activities and progress; d. Coordinate planning functions for grant such as PPP pilot projects and CDP preparation and integration to MDP; e. Prepare project exit plan and strategy and manuals for CIF and CAF; f. Perform such other duties as may be assigned. Qualifications: 1. Graduate of undergraduate or graduate degree in economics, business, management, social sciences, engineering or other related courses; 2. At least ten years experience in the management and implementation of multi- stakeholder community development projects similar to the project with strong focus on public private partnerships 3. Must possess strong leadership, managerial and interpersonal skills

Outputs/Deliverables: 1. Monitorable outputs discussed in each project component 2. Required project management systems 3. Progress reports as required 4. CDP integrated into MDP 14. Financial Management Specialist. (36 person months) The Financial Management Specialist will be responsible for managing the finances of the project in accordance with the prescribed ADB procedures. The specific responsibilities are as follows: a. Prepare/ submit overall budgets, cash flow, financial reports to the Program Director and IA CFO and the ADB;

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b. Prepare request for withdrawals as needed by the project and PIU; c. Review all financial transactions to ensure validity of expense/disbursement, proper documentation, timely payments and keeps track of all accounts; d. Prepare and submit the liquidation and financial reports to the ADB periodically; e. Oversee the imprest account of the project in coordination with the Treasury unit of IA; and monitors all deposits and disbursements of the fund; f. Monitor and accounts cost recovery of projects as appropriate g. Comply with audit findings and all finance policies of IA and ADB. Qualifications: 1. Graduate of undergraduate or graduate degree in accounting or finance management or other related courses; 2. At least ten years experience in the management and implementation of finances of grant assisted projects; 3. Must possess strong leadership, managerial and interpersonal skills 15. Civil Works and Procurement Specialist. (24 person months) The civil works/ procurement specialist will be responsible for the overall supervision of all civil works and construction activities under this project. The consultant shall be responsible for the entire procurement and bidding process and should ensure that all processes and financial reports, reports on expenditures, and procurement are in line with guidelines of the ADB. The specific responsibilities are as follows: a. Evaluate/recommend purchase requirements in accordance with existing procurement policies;

b. Prepare/processes Requests for Quotation and Purchase Orders (PO); c. Schedule delivery of purchases and advise requesting unit of delivery schedule; d. Ensure that all PRs/PO are approved/signed by proper authorities and are supported by all the necessary documents in accordance with accounting and auditing rules and regulations; e. Canvass items per approved purchase requests/negotiates for best prices and terms; f. Monitor price changes/product developments on items relevant to project operations so requesting units are properly advised/updated. g. Ensure timely delivery and receipt of materials; h. Ensure proper and complete documentations of all transactions; and reports/takes actions regarding excess items, shortages or defect. i. Recommend policies/procedures related to specific areas of responsibility

Qualifications: 1. Graduate of undergraduate or graduate degree in business, management, civil engineering other related courses; 2. At least five years experience in the procurement of goods, works and consulting services of grant assisted projects; 3. Must possess strong leadership, managerial and interpersonal skills

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APPENDIX 10 DISBURSEMENTS

A. General Guideline

1. The recipient is responsible for implementing the project according to the letter of agreement and other agreements. On its part, ADB monitors the project and reviews its progress to ensure that the grant is spent as agreed upon.

B. Flow of Funds under this Grant

2. The flow of funds arrangement for the grant is summarized in Figures 1 and 2. The AFI will request ADB to release funds and credit the requested amount to the imprest account maintained with Banco de Oro Hongkong. The Government and the private sector will channel funds representing its contributions directly to its implementing units, contractors or suppliers. AFI shall monitor the delivery of services funded through counterpart funds from the government, private sectors and the community.

C. Actions to Be Taken by the Grant Recipient

3. As soon as the grant has become effective, and to expedite the disbursement, the recipient: i. recruits/assigns qualified accountants and establishes sound internal control and accounting systems in the executing and implementing agencies; ii. reviews the LoA and the grant assistance report. The document provides details of ADB financing such as amount, percentages, items of financing, and applicable conditions of financing; iii. maintains records for all signed contracts in a contract ledger for reference; iv. takes proper actions for procurement in accordance with ADB guidelines.

D. Disbursement Procedures 4. Basic Requirements for Disbursement. The first withdrawal from the loan account requires that:

i. ADB declared the grant effective. ii. the recipient submitted to ADB sufficient evidence of the authority of the person(s) who will sign withdrawal applications (WA) on behalf of the recipient, together with the authenticated specimen signature of each authorized person. (Any subsequent change in the list of authorized representatives must be reported immediately and authenticated specimen signatures of new representatives must also be provided);

iii. conditions for withdrawal, if specified in the Letter of Agreement, were met as appropriate 5. Imprest Account. The imprest account procedure is one where ADB makes an advance disbursement from the grant account for deposit to an imprest account to be exclusively for ADB's share of eligible expenditures. 6. To facilitate disbursement, AFI will establish immediately after the date of grant

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effectiveness, an imprest account. The imprest account will be established in Banco de Oro Hongkong and shall be managed, and liquidated in accordance with ADB's Loan Disbursement Handbook. The statement of expenditures procedure may be used for reimbursing eligible expenditures and liquidating advance from the imprest account for individual payments not exceeding $10,000. The advance amount to be deposited into the imprest account will not exceed the estimated expenditures for the next 6 months, or 10% of the grant amount, whichever is lower. 7. As eligible expenditures are incurred and paid from the imprest account, the recipient requests for liquidation and replenishment of the imprest account by submitting a withdrawal application (WA) (Appendix 10A) and the summary sheet (Appendix 7B) of ADB's Loan Disbursement Handbook if full documentation is required, or statement of expenditures (SOE) (Appendixes 9B and 9C) if SOE procedure is approved. 8. As confirmed by the Government of Japan, use of the interest earned on the Japan Fund for Poverty Reduction (JFPR) imprest account requires ADB's prior approval. Any unutilized interest earned on the JFPR imprest account will be returned to the JFPR account maintained at ADB, upon completion of the project and before the closing of the account. 9. Direct Payment. The direct payment procedure is a disbursement procedure where the ADB, at the recipient’s request, pays a designated beneficiary (e.g., supplier, contractor, or consultant) directly. 10. A signed withdrawal application (WA) (Appendix 7A) must be submitted to ADB together with a summary sheet (Appendix 7B) and the required supporting documents. 11. To prove the requested disbursement is for eligible project expenditures incurred, the supporting documents listed in the following table must be submitted to ADB together with the WA. ADB will return WAs that do not meet the requirements. Additional supporting documents may be required depending on the transaction involved.

Payment for Payment Type Required Supporting Documents Goods One time or

installment payment Supplier’s invoice, or purchase order (indicating date, amount, and bank account details)

Services Advance payment Consultant’s or service provider’s invoice (indicating amount of advance payment and bank account details)

Progress payment Consultant’s or service provider’s invoice (indicating date, amount, and bank account details)

Civil works Advance payment Contractor’s invoice (indicating date, amount, and bank account details)

Progress payment Contractor’s invoice and interim payment certificate or summary of work progress (indicating period covered, amount, and bank account details)

Release of retention Money

Contractor’s invoice (indicating date, amount, and bank account details) and unconditional bank guarantee (if required under Section 4.24 of this handbook)

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12. In addition, supporting documents summarized in the following table should be retained by the borrower for annual audit of project financial statements and/ or ADB’s review. ADB reserves the right to request submission of such documents if deemed necessary. Payment for Payment Type

Payment for Payment Type Supporting Documents to be Maintained by Executing/Implementing Agency

Goods One time or installment payment

Bill of lading or delivery receipts, bank guarantee if required under the contract, and other documents as required in the contract

Services Advance payment

Contract terms and conditions which refer to payment of advance and progress payments, breakdown of amount due, and other documents as required in the contract

Progress payment

Civil works Advance payment Contract terms and conditions which refer to payment of advance, bank guarantee if required under the contract, and other documents as required in the contract

Progress payment Breakdown of amount due and other documents as required in the contract

Release of retention Money

Contract terms and conditions which refer to release of retention money, and other documents as required in the contract

13. Statement of Expenditures. The statement of expenditures (SOE) is a simplified procedure requiring no submission of supporting documentation of expenditures below the approved ceiling. If the amount of an individual payment exceeds the approved ceiling, required supporting documents should be submitted to ADB in accordance with applicable procedures. In the SOE, the representative of the executing agency (EA) or implementing agency (IA) which prepared the SOE certifies the following: i. expenditures have been incurred and paid for proper execution of project activities under the terms and conditions of the loan agreement; ii. all documentation authenticating these expenditures has been retained and will be made available for examination by auditors and ADB representatives upon request; and iii. payments have not been split to enable them to pass through the approved SOE ceiling. 14. The SOE procedure may also be used when liquidating or replenishing advances under the imprest account, if provided in the grant implementation manual under the following conditions: i. where it is impractical to require full documentation, e.g., EA operating costs or expenditures related to contracts scattered over a wide area; ii. EA and/or IA must have sufficient administrative and accounting capabilities to prepare and maintain proper SOE records and make them readily available for examination; iii. EA and/or IA must be capable of arranging for periodic or annual audits of SOE transactions as part of the project’s audit.

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Appendix 10

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Appendix 10

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Appendix 10

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Appendix 10

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Appendix 10

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Appendix 11

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APPENDIX 11

SMALL PROJECTS WITH COMMUNITY PARTICIPATION

A. Introduction 1. Community participation is applied where, in the interest of project sustainability, or to achieve certain specific social objectives of the project, it is desirable in selected project components to (a) call for the participation of local communities and/or nongovernmental organizations (NGOs) in the delivery of services, or (b) increase the utilization of local know-how and materials, or (c) employ labor-intensive and other appropriate technologies. The procedures and guidelines to streamline the various phases of projects with community participation are found in ADB Project Administration Instruction (PAI) 5.10 (revised in 2007). 2. The Grant Assistance Report (GAR) identifies two types of funds to promote community development and innovation while enhancing the self-help capacities of residents. The Community Assistance Fund (CAF) is a grant that will respond to the evident and immediate needs of the community such as electricity, water, and other basic infrastructure. The Community Innovation Fund (CIF) is a revolving fund that will support community projects that improve access of residents to employment opportunities and provide them with sustainable means of livelihood. Guided by the community-driven development (CDD) approach, CIF implementation will help empower residents to make planning decisions and manage community resources. Through the CIF, the community will identify their needs and decide how best they can be addressed. CIF subprojects will be identified, managed, and monitored by the community with AFI providing financial oversight and technical guidance. The proposed procedures and the project components to be carried out by community participation shall be outlined in the financing agreement and further elaborated in the procurement plan or the relevant project implementation document approved by ADB. B. Project Selection Procedures 3. The Community Assistance Fund (CAF) includes support for the electrification and provision of water supply for residents and other community facilities such as solar street lights and the installation of a mini-grid system for these lights that have been previously identified in the GAR. It also includes an amount for community improvement projects that will be identified by the community. In accordance with para. 5 of PAI 5.10 guidelines, the selection of these community improvement projects should follow a set of eligibility criteria based on community needs that meet project objectives. Project documents should clearly identify the sectors and type of subprojects that will be supported, in consultation with the target communities. Some proposed criteria for subproject selection are as follows: (a) The proposed subproject should have been identified for implementation through community participation. (b) The estimated cost of the subproject should be less than $10,000. The limit can be increased to $30,000 if the community has previously implemented a project successfully. However, a workable higher ceiling can also be considered in relation to the entire Project, especially in countries where the cost of construction material is high due to importation costs. (c) The proposed subproject should benefit the target beneficiaries. (d) The proposed subproject should address the needs of the community in terms of

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priority. (e) Due consideration should be given to locating, designing, implementing, and operating the subproject in order to minimize any adverse impacts on the environment and indigenous people. (f) The community should demonstrate adequate capacity to execute or supervise the project. If not, acceptable arrangements should exist to appoint a capable qualified service provider. (g) Construction methods should be labor intensive. (h) The community should indicate its willingness to participate with counterpart funds or in kind, such as labor and should confirm such to ensure suitability of the facilities by organizing recurrent operation and maintenance (O&M) works, if required. (i) Projects requiring continuous recurring costs to operate, such as vehicles and generators, are not eligible unless cost recovery mechanisms are built in. (j) The scope of work should be simple so that implementation by the community is the most practical solution. (k) A realistic implementation plan should be prepared and approved by all concerned parties. 4. A selection committee for the CAF funded projects shall be established and shall include elected representatives of the NHA, PIU, HOA and CBOs. This can be called the BayaniJuan Managing Committee (BMC) comprising a wide spectrum of representation from the community. The BMC shall assess the feasibility, viability and applicability of the project and shall develop sub-project selection criteria that are fully transparent and fair. All subprojects shall be subject to endorsement by the PIU, as applicable. Assessment guidelines should be finalized in advance and should also be based on a thorough evaluation of the project proposals or through data collection based on responses to standard questionnaires or wide consultation, or both. 5. The Community Innovation Fund (CIF) will assist in providing livelihood and employment opportunities for residents. This includes grants for social enterprise development (for groups) and livelihood assistance (for individuals). Some of the previously identified projects are: the scaling up of existing home based industries and identification and implementation of new livelihood projects. Assistance may be in the form of loans or direct grants to individuals or groups. Some proposed criteria for the selection and approval of social enterprise and livelihood grants are as follows: (a) The proposed enterprise/livelihood sub-project project should be endorsed by the Livelihood Assistance Committee (LAC) and approved by the PIU. (b) The estimated cost of the loans/grants to groups or individuals shall be set by the LAC based on the feasibility and financial viability study of the subproject and the requirements needed to implement it; (c) The proposed enterprise/livelihood subproject should identify the target direct and indirect beneficiaries and promote the use of locally available materials and services; (d) The proposed enterprise/livelihood subproject should generate employment opportunities for residents in the community; (e) The groups or individuals applying for the loans/grants should demonstrate adequate capacity to carry out the small enterprises; (f) The groups and individuals should be willing to share their skills and expertise with other residents of the community who have signified their interests in carrying out similar business enterprises.

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6. A Livelihood Assistance Committee (LAC) shall be established to review the feasibility and viability of proposed business enterprises funded by the CIF, composed of representatives from the PIU, HOA and the Local Inter-Agency Committee (LIAC) Sub-Committee on Livelihood. The LAC shall formulate the guidelines and procedures for the selection, evaluation and approval of the projects to be funded out of the CIF as well as guidelines to determine whether assistance should be in form of a loan or a grant and the schedule and mechanics for the release of funds to target beneficiaries. The LAC shall, whenever feasible, include a cost recovery component for the loans/grants either in the form of a management fee, loan repayment, or other means that will be identified later. Funds recovered through loan repayment and other sources shall be channeled to a Livelihood Development Fund (LDF) that shall be used for the continuous operations of the BayaniJuan Producers Association (BPA), for replicating similar projects or for initiating new livelihood projects for other residents. C. Project Management 7. The PIU will assume the following responsibilities for overseeing the projects implemented through community participation: (a) allocate and release funds for each sub-project; (b) oversee procurement and the award of contracts; (c) monitor progress and quality of works regularly and provide regular progress report on implementation status and fund utilization; (d) certify subproject completion, (e) prepare statements of expenditures, maintain proper accounts, and conduct selective audits, and (f) provide advice to BMC, LAC, communities, contractors, and other groups concerned regarding ADB’s policies and guidelines. D. Procurement 8. Procurement guidelines for goods shall be in accordance with Appendix 7. The PIU shall be responsible for the procurement of sub-projects funded under the CAF and the LAC for CIF sub-projects. CAF sub-projects requiring labor component shall employ members of the community either as local labor of as part of its contribution, provided adequate expertise exists. E. Project Implementation and Completion 9. The PIU shall be responsible for the implementation of the CAF subprojects including supervision of contractors’ performances, wherever applicable. Wherever required, the community shall nominate either among its own members or a local specialist as project-in-charge who will oversee the day-to-day supervision of the project. The PIU shall submit monthly progress status and release payments to the contractor as per contract provisions. The PIU should also apprise the community on the status of project implementation either by way of general meetings, posting on notice boards or both. On completion of the project, the PIU shall prepare a comprehensive completion report and detailed accounts.

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APPENDIX 12 CONSULTATION AND PARTICIPATION PLAN

Stakeholder Group Objectives of Intervention

(Why included) Approach to Participation

and Depth

Participation Methods

Timeline* Start Date

End Date

Government: 1. Local Government Unit a. Livelihood Inter-Agency Committee b. Municipal Engineering Office c. Municipal Planning and Development Council d. Municipal Environmental and Natural Resource Officer e. Municipal Social worker f. Rural Health Unit 2. National Government Agencies: a. National Housing Authority b. Department of Energy c. Department of Science and Technology/Technical Education and Skills Development Authority d. Department of Health

Ensure local partnership in implementing livelihood projects Ensure local partnership on the issuance of permits Ensure local partnership and coordination on zoning regulations and integration of CDP to MDP Ensure local partnership in the protection of the environment and implementation of environmental management programs Ensure local partnerships and disseminating results and lessons learned to the wider community on child in conflict with the law and other related concerns Ensure local partnership in health Ensure partnership in overall project objectives as Executing Agency Ensure partnership in electrification of community Build community capacity in use of technologies and employment opportunities Build community awareness and capacity on sound health practices Build community awareness on environmental and sanitation practices Build community awareness on water management and

Partnership Medium

Partnership High

Partnership

High

Partnership Low

Partnership High

Collaboration High

Partnership High

Partnership High

Consultation

Service provision

Service provision

Service

provision

Service provision

Service provision

Service provision

Service provision

Service provision

Service

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Stakeholder Group Objectives of Intervention (Why included)

Approach to Participation

and Depth

Participation Methods

Timeline* Start Date

End Date

e. Department of Environment and Natural Resources f. Laguna Water District g. Department of Social Welfare and Development h. Department of Education

conservation Build community awareness on child protection Build community capacity in formal education

Medium

Consultation Low

Consultation Low

Consultation Medium

Partnership High

Partnership

High

provision

Survey/Service Provision

Service Provision

Service Provision

Service Provision

Survey/Service

Provision

3. Civil Society a. Habitat for Humanity Phil b. Entrepinoy Foundation c. Manila Water Foundation d. Bantay Bata

Ensure partnership in shelter construction Ensure partnership in capacity building and livelihood training Build community awareness in sound sewerage management practices Build community awareness on social services and child protection

Partnership

High

Partnership High

Consultation

Low

Consultation High

Service

provision

Workshop Service

provision Service

provision

Service provision

4. Private Sector a. Lopez Group of Companies b. Sunlife of Canada c. Union Bank of Switzerland

Ensure partnership in shelter and community facilities construction Ensure partnership in shelter and community facilities construction Ensure partnership in shelter and community facilities construction

Partnership

High

Partnership High

Partnership

Service

provision

Service provision

Service

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Stakeholder Group Objectives of Intervention (Why included)

Approach to Participation

and Depth

Participation Methods

Timeline* Start Date

End Date

d. San Miguel Corporation e. Ayala Group of Companies

Ensure partnership in shelter construction Ensure partnership in shelter construction and social programs

Medium

Partnership Medium

Partnership

Medium

provision

Service provision

Service provision

5. Community Based Organizations a. Homeowners association b. Market Vendors Association c. Bayanijuan Producers Association

Build community capacity to ultimately own and be responsible for all aspects of operations and maintenance. Build community capacity to ultimately own and be responsible for all aspects of operations and maintenance Build community capacity to run and operate enterprises and livelihood projects.

Partnership

High

Partnership High

Partnership High

Community Mobilization

Community Mobilization

Community Mobilization

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APPENDIX 13 GUIDELINES FOR THE PREPARATION OF PROGRESS REPORTS AND CALCULATING PROJECT PROGRESS

1. Letters of agreement require executing and implementing agencies to provide ADB with

reports and information it reasonably requests. These include the IA's periodic progress reports that enable the recipient and ADB to monitor project progress, become aware of problems during implementation, and assess whether the immediate project objectives will be met.

2. The IA submits the progress reports quarterly, regardless of progress achieved during the

period. When little or no progress is achieved, the progress reports inform ADB of the reasons and problems delaying the implementation or that may result in the immediate objectives not being met.

A. Content and Format 3. The content of the progress report includes sufficient information in summary form to be

useful to ADB as a funding agency. The purpose of the report is to enable the IA and ADB to monitor the latest progress, become aware of current problems, and assess whether the project's immediate objectives will be met. More detailed reports are prepared by consultants or contractors for the IA. These reports are held at the IA and are made available for ADB’s review, midterm review, and project completion review missions.

4. When ADB requires detailed information (such as background to a particular problem), this

included as an appendix. Simple charts such as a bar or milestone charts to illustrate implementation progress, a chart showing actual events versus planned actions, expenditures, and the relationship between physical and financial performance are included.

B. Submission Deadline

5. The progress report is due in the date of i. 15 May (for the reporting period 16 January to 15 April); ii. 15 August (for the period 16 April to 15 July); iii. 15 November (for the period 16 July to 15 October ) iv. 15 February ( for the period 16 October of previous year to 15 January)

6. If a progress report is not received within two weeks of the scheduled date of receipt, the sector division or RM responsible for implementing the project sends a reminder immediately to the IA. Repeated delays in sending progress reports are recorded in the PPR and discussed with the EA/IA by the project review mission. C. Procedures

7. The Project Performance Report is the main tool for monitoring project implementation performance within ADB. PPRs for "satisfactory" projects are updated at least quarterly as well as after project review missions. PPRs for "unsatisfactory and "partly satisfactory" projects are updated more frequently. The following procedures apply:

i. The ADB staff captures key information from the progress report and updates the PPR;

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ii. The ADB staff then recommends any proposed actions to the project implementation unit (PIU) head. iii. If the PIU head approves the recommendations, the sector division or RM responsible for implementing the project conveys ADB's comments or recommendations on the report to the IA. In so doing, a copy of the updated PPR resulting from the progress report may be incorporated. iv. Where necessary, a special project administration mission is sent to resolve serious problems in advance of the next scheduled review mission, v. All departments and offices have access to the updated PPR, and a copy of the progress report is sent only to the concerned parties. For example, in the case of major changes or problems concerning financial matters, submission of the IA's progress report to the Loan Administration Division (CTLA) may help process withdrawal applications when the project involves force account works, or where a significant disparity is observed between progress and disbursement.

D. Progress Report Formats 8. JFPR Grant Status Report as Executive Summary (GSR) serves as an executive summary of the quarterly progress reports (QPR). The GSR will be submitted to ADB's office of Co-finance (OCO) by an ADB staff and OCO will inform the Government of Japan about the progress and issues of the Project on behalf of ADB. 9. The suggested formats and templates for the grant status report, other progress reports and financial reporting and auditing requirements as well as the quarterly reporting template and planning and reporting templates are found in this Appendix. E. Framework and Guidelines in Calculating Project Progress

10. To ensure that all implementation activities as well as project expenditures are reflected in measuring implementation progress against the project implementation schedule, both financial and physical progress are measured. Financial accomplishment is measured by the percentage of grant funds utilized for each component and is referred to as “financial progress” while physical completion is evaluated by the accomplishment for each output indictor over the project schedule and is referred to as “physical progress”. 11. Physical and pre-commencement activities are considered in calculating project implementation progress. These activities, which may include recruitment of consultants, capacity building, detailed design, preparation of bid and prequalification documents, etc., could constitute a significant proportion of overall implementation and therefore should be counted. 12. Performance targets and baselines identified in the Design and Monitoring Framework which are key to determining project impact such as availability of hard data on basic services and satisfaction survey on the delivery of basic services before and after the project are also included to validate impact and compliance with project objectives. 13. For financial progress, the status of fund utilization for each component is measured and weighted in accordance with the grant funds allocated as found in the detailed cost estimates. For physical progress, each activity in the implementation schedule will be weighted according to its overall contribution (using time as a reference) to progress of project implementation. These weights will then be used to calculate the percentage of project progress along the entire time span of the project. This is to provide a holistic view of the pace of implementation.

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14. Framework for Compiling Activity List and Assigning Weights. As implementation activities (with corresponding weights) will vary in terms of project, an agreement was reached between the ADB and the IA on the relative weights to be assigned based on the importance of each of the components in terms of budgetary allocation and physical accomplishment as incorporated in this Grant Implementation Manual. The actual project implementation progress of these activities should be reported regularly through the IA’s quarterly project progress report. To ensure ADB-wide consistency, the following framework has been established. 1. Compilation of Activity List 15. The project officer identified and included major implementation activities and key output and performance indicators in the implementation schedule which is an expansion of Appendix 4. The implementation schedule follows the critical path of the project’s major activities in project implementation taking account of various project constraints. It also takes into account specific performance indicators to facilitate 2. Assignment of Weights 16. Corresponding weights for each activity were assigned to ensure that “physical progress" measures the percentage of achievement for all events during the entire duration of the implementation schedule as well as key performance indicators. The assigned weights were based on a consensus reached between the project officer and the IA on the relative importance of each activity comprising a component. 3. Computation of Project Progress 17. Financial and physical progress shall be calculated using the following steps:

(i) Determine the actual percentage progress of each component for financial progress and of each activity for physical progress. (ii) Multiply these percentages by the assigned weight of each activity to arrive at the weighted progress. (iii) Add the resulting weighted progress of all activities to determine the project financial

and physical progress. The percentage of project progress by weighted activity should then be plotted in a figure and compared with disbursement and time elapsed

since grant effectiveness.

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Proposed Table for Calculating Project Progress

Output Indicators

2012 2013 2014 2015 Financial Progress Physical Progress Q 2

Q 3

Q 4

Q 1

Q 2

Q 3

Q 4

Q 1

Q 2

Q 3

Q 4

Q 1

Q 2

Assigned Weight

(a)

Actual Progress

(b)

Weighted Progress

(a)x(b)

Assigned Weight

(c)

Actual Progress

(d)

Weighted Progress

(c)x(d)

Project Quarter 1 2 3 4 5 6 7 8 9 10 11 12 13 1 Component A: Program for Expanding Multi-Sectoral Partnerships 4% 15%

1.1 Specific provisions for Southville 7 indicated in the MDP of Calauan LGU 1% 1.2 Budget allocation for Southville 7 indicated in the AIP of Calauan LGU 1% 1.3 PPP project and partners identified .5% 1.4 Policies and implementing guidelines and tool kit for PPP project

developed

1%

1.5 Institutional framework and business plan for PPP developed and discussed with partners

1%

1.6 Feasibility study for pilot PPP conducted/prepared (prepared and implemented)

1%

1.7 PPP project implemented 5% 1.8 Capacity development on PPP conducted 3% 1.9 Covenant between AFI and partners confirming funding commitments

and contributions in-kind existing

.5%

1.10 Value of donations generated increased from baseline 1% 2 COMPONENT B: Community Development and Innovation Program 62% 50%

2.1 Hard data on basic services and infrastructure available 1% 2.2 Satisfaction survey on delivery of basic services conducted 1% 2.3 Electricity for 2,041 houses provided 15% 2.4 Electrification and rehabilitation of four community facilities 4% 2.5 Establishment of operation and maintenance systems (O&M) for the e-

trikes and mini-grid

1%

2.6 Installation of additional solar street lights 3% 2.7 Establishment of full operations of the CAF and CIF 2% 2.8 Provision of water connection to residents 10% 2.9 Community improvement projects identified and implemented 5% 2.10 Social enterprise and livelihood assistance programs identified and

implemented

5%

2.11 Households benefiting from livelihood assistance programs increased in number

2%

2.12 Women beneficiaries from livelihood assistance programs increased in number

1%

3 COMPONENT C: Capacity Development of Residents in Community Development and Social Entrepreneurship 14% 20% 3.1 Community Based Organizations (CBOs) and Homeowners Associations

(HOAs) established

5%

3.2 Capacity development needs assessment conducted and training programs identified

2%

3.3 Needs-based knowledge and skills enhancement programs implemented 3% 3.4 HOA and CBO officers trained on management, leadership, and

identified skills and competencies

5%

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Output Indicators

2012 2013 2014 2015 Financial Progress Physical Progress Q 2

Q 3

Q 4

Q 1

Q 2

Q 3

Q 4

Q 1

Q 2

Q 3

Q 4

Q 1

Q 2

Assigned Weight

(a)

Actual Progress

(b)

Weighted Progress

(a)x(b)

Assigned Weight

(c)

Actual Progress

(d)

Weighted Progress

(c)x(d)

Project Quarter 1 2 3 4 5 6 7 8 9 10 11 12 13 3.5 Community development planning conducted 1% 3.6 Three year Community Development Plan available 2% 3.7 Management and Utilization of the CAF checked against CDP 1% 3.8 Women in capacity development programs increased in number 1% 4 COMPONENT D: Project management, monitoring and evaluation, and reporting system 20% 15%

4.1 PIU established 3% 4.2 Consultants recruited 2% 4.3 Project management, monitoring and evaluation system established 2% 4.4 Project baselines and database established 1% 4.5 Project exit strategy and community governance systems designed and

implemented 1%

4.6 Required project and financial reports submitted on time 2% 4.7 Good practices and innovations identified and documented 2%

4.8 Project evaluation study conducted 2% Total 100% 100%

Implementation Progress

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JAPAN FUND FOR POVERTY REDUCTION (JFPR)

GRANT STATUS REPORT

(Note: To be received by OCO within one month after the end of the reporting period) A. Basic Grant Data DMC: Grant Number:

Name of Grant:

Approved Grant Amount: $

Responsible Project Officer and Division {name, position, e-mail, phone}:

Grant Commencement Date (Date LoA was signed):

Original Closing Date / Revised Closing date (after extension):

Executing Agency {Names, Address, Contact Persons, E-mail, Phone, Fax}: Implementing Agency(ies) {Names, Address, Contact Persons, E-mail, Phone, Fax}:

B. Grant Status Period of Reporting {date from/to}:

Date when this report was prepared: General Status (Summary)

A B C D E8

Specify:______________________________

Grant Development Objective: Grant Components Targeted/Expected Output Physical

Accomplishments

(%) Rating9

(HS,S,PS,U) Notes - Remarks:

8 A = Financially Closed; B = Implementation already started or is ongoing; C = LOA signed but implementation has not started yet;

D = ADB Approved but LOA not yet signed; E = Others, (please briefly specify, e.g. extension, or issues that need to be flagged)

9 HS=Highly Satisfactory, S=Satisfactory, PS=Partly Satisfactory, U=Unsatisfactory

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C. Grant Utilization Grant Committed: $

Cumulative Disbursements: $

Balance: $

Notes - Remarks:

Annual Disbursements (from ADB to Grant Accounts): 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Projected: $ $ $ $ Actual : $ $ $ $

Procurement of Goods and Services:

Goods Services Notes - Remarks:

No. of Contracts

Total Amount

No. of Contracts

Total Amount

Contracts Awarded: Outstanding Contracts:

D. Major Issues / Problems {please add extra sheet if necessary}

Problems / Issues Action Taken / Proposed

Prepared By: Name / Division / Signature Comments Project Officer

Cleared By: Name / Division / Signature Comments Position

Position

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SUGGESTED FORMAT FOR OTHER PROGRESS REPORTS

Quarterly Progress Report Guidelines A. Introduction and Basic Data Provide the following: • ADB grant number, project title, borrower, executing agency(ies), implementing agency(ies); • Total estimated project cost and financing plan; • Status of project financing including availability of counterpart funds and cofinancing; • Dates of approval, signing, and effectiveness of ADB grant; • Original and revised (if applicable) ADB grant closing date and elapsed grant period based on Original and revised (if applicable) grant closing dates; and • Date of last ADB review mission. B. Utilization of Funds (ADB Grant, Cofinancing, and Counterpart funds) Provide the following: • Cumulative contract awards financed by the ADB grant, cofinancing, and counterpart funds (commitment of funds to date), and comparison with time-bound projections (targets); • Cumulative disbursements from the ADB grant, cofinancing, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets); and • Reestimated costs to completion, need for reallocation within ADB grant categories, and whether an overall project cost overrun is likely. C. Project Scope Provide the following: • An assessment of the likelihood that the immediate development objectives (project purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements; • An assessment of changes to the key assumptions and risks that affect attainment of the development objectives; and • Other project developments, including monitoring and reporting on environmental and social requirements that might adversely affect the project's viability or accomplishment of immediate objectives. D. Implementation Progress Provide the following: • Assessment of project scope/implementation arrangements compared with those in the Grant Assistance Report, and whether major changes have occurred or will need to be made; • Information relating to other aspects of the IA’s internal operations that may impact on the implementation arrangements or project progress; • Progress or achievements in implementation since the last progress report; • Assessment of the progress of each project component, such as, recruitment of consultants and their performance; • Procurement of goods and works (from preparation of detailed designs and bidding

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documents to contract awards); • The performance of suppliers, manufacturers, and contractors for goods and works contracts; • Assessment of progress in implementing the overall project to date in comparison with the original implementation schedule—quantifiable and monitorable target, (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure, S-curve graph showing the relationship between physical and financial performance, and actual progress in comparison with the original schedules and budgets. E. Compliance with Covenants Provide the following: • The Government's compliance with policy grant covenants such as sector reform initiatives and IA reforms, and the reasons for any noncompliance or delay in compliance; • The Government's and IA’s compliance with financial grant covenants including the IA’s financial management, and the provision of audited project accounts or audited agency financial statements; and • The Government's and IA’s compliance with project-specific grant covenants associated with implementation, environment, and social dimensions. F. Major Project Issues and Problems • Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues

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Quarterly Report Template

Promoting Partnerships and Innovation in Poor and Underserved Communities

1. Introduction JFPR Grant Number: 9162-PHI Grant Amount: US$ 1.5 million Estimated Project Cost: USD ($) 6.009 million Date of Grant Effectiveness: May 22, 2012 Project Implementation Period: 3 years Time Elapsed Since Grant Effectiveness: Overall Implementation Progress: ___% Date of Last ADB Review Mission: Project Expenditures by Quarter: JFPR: US$ Government Contribution: US$ Q1 (JFPR): $___ Q2 (JFPR): $___ Continue for all project quarters Total: US$ Project Scope: Summary of Project Progress: 2. Project Organization and Management Implementation Arrangements: Establishment of PIU: Organization and Staffing of PIU: 3. Assessment of Implementation Progress Assessment of progress made during the reporting period (by project component) Component A: Component B: Component C: Component D: Problems encountered and remedial actions taken or proposed to be taken: Proposed program of activities during the next quarter: Modifications to proposed implementation schedule: Percentage of implementation progress, time elapsed and disbursement: 4. Consultant Recruitment and Performance: Summary of status of recruitment of consultants: Details of consultants’ inputs and general performance:

Position Main Inputs Performance Highly Satisfactory Satisfactory Not Satisfactory

Repeat rows as necessary

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5. Procurement of civil works, equipment and materials List contract packages, indicating the following: a) procurement procedures to be used: b) value of contracts (estimate): c) specifications: Status of preparation of prequalification bid/documents: Schedule of advertising of prequalification, bid invitations: Prequalification/bid evaluation: Status of contract awards: 6. Implementation of Physical Works Physical progress of each civil work contract: Estimated completion of each civil work: Performance and Efficiency of Contractor(s) and Quality of Work: Land Use and Resettlement: Information on Initial Environmental Examination: 7. Operation and Maintenance of Project Facilities Status of implementation of O& M: Development of O&M manuals and on-the-job training for O&M: Equipment for O&M: Budget for O&M: 8. Training, Survey and Capacity Building Programs Summary of training activities and participation: Training courses undertaken during the quarter, with costs, etc: Training courses schedules for next quarter: Survey and planning activities: 9. Community Participation Summary of community workshops, activities and community stakeholder training and community involvement in the project design and O&M of project supported facilities: 10. Administration and Finance Budget allocations and counterpart funding arrangements (attached schedule of counterpart funds allocated and disbursed during the period, with projections for the next quarter: Project disbursements: Financial position Status of imprest fund account: 11. Monitoring and Evaluation (M&E) Status and establishment of the project’s M&E system: Status of establishment of baseline conditions: Status of data collection, analysis collection: Reports submission:

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12. Compliance with Grant Covenants/Government Assurances Major covenants and status of compliance:

Government assurances and status of progress: 13. Consulting services utilized 14. Outcome of activities undertaken during this reporting period: a. Training b. Infrastructure c. Gender Action Plan Activities d. Others 15. Amount of funds liquidated during the period: a. Project funds b. Matching government funds 16. PIU financial position: a. Status of imprest account b. Total expenditure ( from SOE) for the reporting period c. Projected budgetary expenditure for next quarter 17. Subcontracts and partnerships: 18. Difficulties encountered and lessons learned: 19. Requests and recommendations for next quarter: 20. Other issues 21. List of attachments: a. Percentage of Project Progress by Weighted Activity b. Record of Training & Workshops c. Semi-annual Work plan with Percentage of Output Targets Achieved: d. Name of PIU personnel and project consultants e. List of subcontracts awarded f. Statement of Expenditure (SOE) Prepared by: Approved by:

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PLANNING AND REPORTING TEMPLATES

AFI Japan Fund for Poverty Reduction: Promoting Partnerships and Innovation in Poor and

Underserved Communities

(add NHA, AFI and JFPR logos)

Project Activity Proposal

Title of Activity: Date(s): Objective/Justification: Location: Implementing personnel/partner: Participants: Methodology: Budget: Subcontract: Remarks: List of attachments: a. detailed budget b. schedule/agenda c. other attachments as appropriate Recommendations/actions: Prepared by: Approved by:

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AFI

Japan Fund for Poverty Reduction: Promoting Partnerships and Innovation in Poor and Underserved Communities

(add NHA, AFI and JFPR logos)

Project Activity Report

Title of Activity: Date(s): Location: Implementing personnel/partner: Methodology: Outcome: Lesson learned: Actual budget expenditures: Subcontract: Remarks: Attachments: a. Detailed list of expenditures b. list of participants in workshops c. related technical materials/notes d. others (list as appropriate) Recommendations/follow-up actions: Prepared by: Approved by:

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ASIAN DEVELOPMENT BANK

Southeast Asia Department

Social Sector Division [Date]1

[The Borrower] Dear Sir or Madam: Subject: [Loan No. and Project Title]

FINANCIAL REPORTING AND AUDITING REQUIREMENTS This letter is to ensure your timely compliance with the loan covenants and the quality of financial information as required by ADB. ADB's Handbook for Borrowers on the Financial Governance and Management of Investment Projects Financed by the ADB (the Booklet) is enclosed to guide you. ADB, by its Charter, is required to ensure that the proceeds of any loan made, guaranteed, or participated in by ADB are used for the purposes for which the loan was approved. ADB requires accurate and timely financial information from its borrowers to be assured that expenditure was for the purposes stated in the loan agreement. For this particular loan, the requirements are stipulated in sections _____2 and _____3 of the Loan Agreement of ______________ between ADB and [the Borrower] and sections ______4

and _____5 of the Project Agreement6 of _____________ between ADB and [name of the EA].7

Copies of the Loan/Project Agreements are enclosed for onward transmission by your office to your EA and the auditor(s), together with a copy of this letter. The following are the main requirements: ADB requires the EA to maintain separate project accounts and records exclusively for the Project to ensure that the loan funds were used only for the objectives set out in the Loan orProject Agreements. The project accounts comprise the following:8

- - The first set of project accounts to be submitted to ADB covers the fiscal year ending ______. As stipulated in the Loan or Project Agreements, they are to be submitted up to _____ months after the end of the fiscal year. For this loan, the deadline is by _________________. sample report format with explanatory notes, is attached as Annex A .

The accounts and records for the project are to be consistently maintained by using sound accounting principles. Please stipulate that your external auditor is to express an opinion on whether the financial report has been prepared using international or local generally accepted accounting standards and whether they have been applied consistently.

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ADB prefers project accounts to use international accounting standards prescribed by the International Accounting Standards Committee. Please advise your external auditor to comment on the impact of any deviations, by [name of the Executing Agency] from international accounting standards. Please ensure that your external auditor specifies in the Auditor's Report the appropriate auditing standards they used, and direct them to expand the scope of the paragraph in the Auditor's Report by disclosing the key audit procedures followed. Your external auditor is also to state whether the same audit procedures were followed for all supplementary financial statements submitted. ADB wishes that auditors conform to the international auditing standards issued by the International Federation of Accountants. In cases where other auditing standards are used, request that your external auditor to indicate in the Auditor's Report the extent of any differences and their impact on the audit. The external auditor's opinion is also required on whether

• the proceeds of the ADB's loan have been utilized only for the project as stated in the Loan Agreement;

• the financial information contains data specifically agreed upon between [name of the Borrower or EA] and ADB to be included in the financial statements;

• the financial information complies with relevant regulations and statutory requirements; and

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

The Auditor's Report is to clearly state the reasons for any opinions that are qualified, adverse, or disclaimers. Actions on deficiencies disclosed by the external auditor in its report are to be resolved by [name of Borrower or Executing Agency] within a reasonable time. The external auditor is to comment in the subsequent Auditor’s Report on the adequacy of the corrective measures taken by [name of Borrower or EA]. Compliance with these ADB requirements will be monitored by review missions and during normal project supervision, and followed up regularly with all concerned, including the external auditor. Yours sincerely, Director Social Sectors cc: (EA) (External auditor of the Borrower or EA)

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1 The audit letter, with the loan and project agreements, is sent to the borrower when the auditor has

been appointed or when the agreements are sent by the program department to the Ministry of Finance or other authority of the borrower.

2 Specify section no. in the loan agreement on maintaining project accounts and records. 3 Specify section no. in the loan agreement on the audit requirements. 4 Specify section no. in the project agreement on maintaining project accounts and records 5 Specify section no. in the project agreement on the audit requirements. 6 If there is a project agreement. 7 When more than one project agreement, provide similar information. 8 Listed are standard accounts required from nonrevenue-earning entities. Try to identify specific titles

of financial statements expected to be submitted by the Borrower and EAs. For revenue-earning entities, the submissions consist of the entities’ audited financial statements. For nonrevenue-earning entities, the submissions consist of audited project accounts.

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Model Audit Opinion for a Non-Revenue-Earning Project

To: Borrower (or designated agency) We have audited the accompanying financial statements (pages ___ to___ ) of the __________ Project financed under the Asian Development Bank Loan # ________as of December 31, 20__, and for the year then ended. These financial statements are the responsibility of the management of the _______EA. Our responsibility is to express an opinion on the accompanying statements based on our audit. We conducted our examination in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of misstatement. Our audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our audit also includes assessing the accounting principles and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. The ____ (EA’s) policy is to prepare the accompanying statements in the format agreed between the Asian Development Bank and the Government of _________as noted in the Minutes of Negotiations for the Loan, [on a cash receipts and disbursements basis in which cash is recognized when received and expenses are recognized when paid, rather than when incurred] / [on an accruals basis in which expenses are recognized when incurred and revenue is reported when income is due.] In our opinion, (A) the aforementioned financial statements and appended notes that were also the subject of the audit, fairly present in all material respects the financial position of the _________ project as at__________20__and the results of its operations for the year ended _________ 20__, in conformity with _____________accounting standards, applied on a basis consistent in all material respects with that of the previous year; (B) the [Borrower] [EA] has utilized all proceeds of the loan withdrawn from the Asian Development Bank only for purposes of the Project as agreed between the Asian Development Bank and [the Borrower] in accordance with the Loan Agreement; and no proceeds of the loan have been utilized for other purposes; and (C) the [Borrower] [EA] was in compliance as at the date of the balance sheet of the year of audit with all financial covenants of the Loan Agreement. In addition: (a) (1) With respect to Statements of Expenditures, adequate supporting documentation has been maintained to support claims to the Asian Development Bank for reimbursements of expenditures incurred; and (2) which expenditures are eligible for financing under Loan Agreement No.______ . (b) (1) The Imprest Accounts (page____ ) give a true and fair view of the receipts collected and payments made during the year ending _____ ; and (2) these receipts and payments support Imprest Account liquidations/replenishments during the year. [(a) and (b), above, are to be provided where the Loan Agreement requires separate Imprest Account and Statement of Expenditures audits and audit opinions.]

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Appendix 14 JFPR IMPLEMENTATION COMPLETION MEMORANDUM (ICM)10

A. Objective and Scope

1. The main objective of a JFPR Implementation Completion Memorandum (ICM) is to learn from the experiences of the Recipients, executing agencies (EAs), implementing agencies (IAs) and ADB in implementing grants, and to use the lessons learned to improve the performance of ongoing and future ADB-financed projects in poverty reduction. The ICM will also be used as a measure of ADB’s development effectiveness and as an input to country strategy formulation. An ICM.

i. evaluates the rationale for the JFPR; adequacy of preparation; appraisal and design; implementation arrangements; and performance of the recipient, EA, IAs and ADB, including how problems were handled, whether they were foreseen as potential risks, and the adequacy of the solutions adopted during implementation; ii. provides a preliminary evaluation of achievements of the immediate objectives (purpose) and the impact and contribution to the overall objectives (goal); iii. provides a preliminary evaluation of the sustainability of the grant interventions and benefits; and iv. makes recommendations—based on the evaluation and lessons learned—for dissemination and scaling-up of the grant interventions for future ADB operations.

B. Timing and Preparation of ICM

2. An ICM is prepared within six months after Grant Closing Date11

.

3. The Recipient (EA and/or IA) first prepares the ICM for self-evaluation and also helps with the preparation of ADB’s section of the ICM. If the Recipient’s contribution of the ICM is delayed and the grant implementation is considered complete, the division/country director concerned may, after consultation with the latest review mission and responsible project staff, decide to proceed with preparing ADB’s part of the ICM in the absence of the recipient’s section of the ICM.

4. When the grant implementation is approaching completion, an ADB review mission

should agree with the Recipients on the outline and timing for the Recipient’s section of the ICM. Assistance in preparing the Recipient’s section of the ICM is usually a part of the terms of reference of the grant implementation unit (GIU).

C. Length and Content of ICMs.

5. Staff of the unit administering the grant (sector division, regional department or resident mission) must ensure that any problems or issues that arose during grant implementation are recorded in the ICM. Grant status reports and back-to-office reports (BTORs) prepared during preparation and implementation will provide the input for this. Such issues or problems should not go unnoticed and thus lessons ignored. Therefore,

10 Policy and procedures are based on the JFPR guidelines, topic 29, in combination with the principles of PAI 6.07 – Grant Completion Report for ADB Loans. 11 Grant Closing Date is the date when all implementation, consolidation and other related physical activities end, as shown in the JFPR Grant Proposal and the Letter of Agreement, up to a maximum of four years after JFPR grant effectiveness, including extensions.

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all ICMs are to be detailed. Appendixes are limited to those that are essential for explaining the text.

6. An ICM is kept concise by

i. concentrating on analyzing grant inputs and activities, implementation arrangements, costs, outputs, and impacts;

ii. focusing on the principal determinants of performance; iii. using condensed analytical tables and supporting appendixes; iv. using cross-referencing to source documents; and v. avoiding repetition.

D. Intended Use of the Implementation Completion Memorandum (ICM)

7. ICMs are intended for use by and will be circulated to the i. The Government of Japan ii. Directors General and Directors of relevant departments, Divisions and offices; iii. Country director, RM concerned; and iv. Recipients, concerned DMC agency, executing and implementing agencies.

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Japan Fund for Poverty Reduction

IMPLEMENTATION COMPLETION MEMORANDUM (ICM)12

I. BASIC INFORMATION 1. JFPR Number and Name of Grant: 2. Country (DMC): 3. Approved JFPR Grant Amount:

$ 4. Grant Type: O Project O Capacity Building

5A. Undisburded Amount $

5B. Utilized Amount $

6. Contributions from other sources {convert in-kind contributions to US$} Source of Contribution Committed Amount Actual Contribution Remarks - Notes

DMC Government $ $ Other Donors (please name) $ $ Private Sector $ $ Community/Beneficiaries $ $ 7A. GOJ Approval Date: 7B. ADB Approval Date: 7C. Date the LOA was signed

(Grant Effectiveness Date):

8A. Original Grant Closing Date: 8B. Actual Grant Closing Date: 8C. Account Closing Date:

9. Name and Number of ADB Counterpart (Loan) Project: 10. The Grant Recipient(s): (Names, address, contact persons, e-mail, phone, fax numbers of agency(ies) and/or institutions that signed the Letter of Agreement with ADB) 11. The Executing and (Names, address, contact persons, e-mail, phone, fax ) II. GRANT PERFORMANCE ASSESSMENT 12. Description (Background rationale): {Extract information on background and rationale from the approved JFPR Grant Proposal and summarize} 13. Grant Development Objective and Scope: {Briefly describe the Grant Development Objectives (purpose) and scope (outputs and activities). Assess the relevance of the Grant design (including appropriateness of objectives, components, implementation arrangements and schedule) and formulation (including extent of stakeholder participation and ownership}

12 The ICM has to be prepared under responsibility of the ADB Project Officer with contributions from the Recipient,

EA/IA and then grant project manager or coordinator of the PIU.

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14. Key Performance Indicators {List each of the original indicator as mentioned in the approved JFPR Grant Proposal}

{rate the accomplishments, describe any changes and evaluate each indicator for its relevance, achievements and sustainability}

i).

ii).

iii).

iv).

v).

15. Evaluation of Inputs (Adequacy of formulation, terms of reference, inputs and performance of the Recipient(s), EA, IA,NGO and ADB, performance of consultants, other inputs, review missions): [Evaluate among others: (i) the economy of input provision (the relative cost of input provision); (ii) the productivity of the inputs (conversion into outputs); (iii) the quality of the inputs; (iv) reasons for deviating from planned input and activities; (v) client satisfaction with inputs provided; (vi) performance of the ADB, the Recipient, the EA, IA(s), NGOs as highly satisfactory (HS), satisfactory (S), partly satisfactory (PS), or Unsatisfactory (U); (vii) any other inputs. 16. Evaluation of Outputs (Reports generated, institution building, training, analysis of quality, comparison with terms of reference, sustainability, and exit strategy: {Evaluate performance issues such as (i) efficiency in the production of outputs (cost and process); (ii) effectiveness or efficacy (compare actual to planned results); (iii) quality of outputs (refer to qualitative benchmarks where possible); (iv) recipient and client (beneficiaries) satisfaction with the outputs/results; (v) timeliness of delivery of outputs; and (vi) effectiveness of the exit strategy and related transfer of activities for sustainability.} 17. Overall Assessment and Rating (HS, S, PS, U): {Provide and overall assessment including the issues of sustainability, and categorize the Grant activities as highly successful (HS), successful (S), partly successful (PS) and unsuccessful (U) following OED’s guidelines}

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18. Major Lessons Learned: { Discuss the significant lessons learned that can help improve the formulation and implementation of similar JFPR grant investments and as an input for recommendations and for scaling-up the pilot interventions under this Grant, particularly in relation to the overall objective of poverty reduction.} 19. Recommendations and Follow-Up Actions: {Include project specific and general recommendations (scaling up) of any interventions, activities and action required, and make suggestions for changes to policies and strategies that can improve the effectiveness of the counterpart loan, future JFPR grants, and/or that can generally be applicable to ADB practices} 20. Additional Remarks, Comments and Suggestions:

III. PREPARATION AND APPROVAL

Prepared by: Name of Person and designation/Name of Institution/Signature

Date

1. Representative from the Recipient:

2. Manager, JFPR-GIU13 3. Project Officer, ADB: {the Project Officer consolidates the inputs from the Recipient and the PIU}

Approved Name of Person and designation/Name of

Institution/Signature

1. Director General, Department, ADB:

2. Division/Country Director, ADB:

3. Head of the Recipient:

4. Head of the Executing Agency:

5. Head of the Implementing Agency:

13 GIU = grant implementation unit (formerly called PIU = project implementation unit)

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APPENDIX 15

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APPENDIX 16

LETTER OF AGREEMENT

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Appendix 16

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Appendix 16

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APPENDIX 17 GRANT COVENANTS

Reference Covenants 1 LOA, Clause 3 The Government and AFI shall carry out the JFPR Project with due diligence

and efficiency, in accordance with the arrangements described in the Grant Assistance Report, and as provided below

2 LOA, Clause 5 The Government and AFI shall make available, promptly as needed, the funds, facilities, services, equipment, land and other resources which are required, in addition to the funds to be provided under the JFPR Assistance (the JFPR Funds), for the carrying out of the JFPR Project.

3 LOA, Clause 6 Except as ADB may otherwise agree, AFI shall apply the JFPR Funds and any interest or the income earned on the imprest account to the financing of expenditures specified in the Grant Assistance Report

4 LOA, Clause 7 Except as ADB may otherwise agree, AFI shall ensure all goods, services and other items of expenditure financed out of the JFPR Funds are used exclusively in the carrying out of the JFPR Project.

5 LOA, Clause 8 The procurement by AFI of any goods and services (excluding consulting services) financed under the JFPR Assistance shall be carried out in accordance with the ADB Procurement Guidelines (2010, as amended from time to time). The engagement of any consulting services financed under the JFPR Assistance shall be carried out in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers (2010, as amended from time to time).

6 LOA, Clause 9 No local taxes or duties payable by public entities (whether the central government, any local government or any public institution) shall be financed under the JFPR Assistance

7 LOA, Clause 10 AFI shall maintain, or cause to be maintained, records and accounts adequate to identify the goods, services and other items of expenditure financed out of the JFPR Funds, to disclose the use thereof in the JFPR Project, and to record the progress of the JFPR Project (including the cost thereof).

8 LOA, Clause 11 (a) AFI shall (i) maintain or cause to be maintained, separate accounts for the JFPR Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the JFPR Funds, compliance with the financial covenants of this Letter of Agreement, and the operation of any imprest account and the application of any statement of expenditures (SOE) procedure authorized under the JFPR Project), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request. (b) AFI shall enable ADB, upon ADB’s request, to discuss AFI financial statements for the JFPR Project from time to time with the Government’s auditors, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB.

9 LOA, Clause 12 The Government and AFIshall enable ADB’s representatives to inspect the JFPR Project, and the goods, services and other items of expenditure financed out of the JFPR Funds, and any relevant records and documents.

10 LOA, Clause 13 (a) The JFPR Funds shall not be disbursed by ADB after 21 November 2015, six months after the expected completion date of the JFPR project, or such

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Reference Covenants other date as ADB may agree up to a maximum of four years from the date of this letter of agreement.

11 LOA, Clause 13 (b) AFI shall follow, or cause to be followed, procedures acceptable to ADB to facilitate disbursement of the JFPR Funds under the JFPR Project. These provisions shall include detailed arrangements to be agreed upon between AFI and ADB on applications for withdrawal, evidence of authority to sign such applications, evidence to support such applications, and sufficiency of such applications.

12 LOA, Clause 13 (c) AFI shall, establish, immediately upon its confirmation of this Letter of Agreement or such later date as ADB may agree, an imprest account at a commercial bank acceptable to ADB. The imprest account shall be established, managed, replenished and liquidated in accordance with ADB’s “Loan Disbursement Handbook” dated January 2007, as amended from time to time, and detailed arrangements agreed upon between AFI and ADB. The initial amount to be deposited into the imprest account shall be based on 6 months estimated expenditure to be funded from the imprest account or 10% of the grant amount, whichever is lower, as agreed between ADB and AFI.

14 LOA, Clause 13 (d) The statement of expenditures (SOE) procedure may be used for reimbursement of eligible expenditures for the JFPR Project and to liquidate advances provided into the imprest account, in accordance with ADB’s “Loan Disbursement Handbook” dated January 2007, as amended from time to time, and detailed arrangements agreed upon between the Government and ADB. Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed an amount agreed upon by AFI and ADB. Any individual payment to be reimbursed of liquidated under the SOE procedure shall not exceed the ceiling amount of USD 10,000 per payment.

15 LOA, Clause 14 (a) The Government through AFI shall furnish, or cause to be furnished, to ADB all such reports and information as ADB shall reasonably request concerning (i) the use of the JFPR Funds; (ii) the goods, services and other items of expenditure financed out of the proceeds of the JFPR Funds; (iii) the JFPR Project; and (iv) any other matters relating to the purposes of the JFPR Assistance.

16 LOA, Clause 14 (b) Without limiting the generality of the foregoing, AFI shall furnish, or cause to be furnished, to ADB and the Government quarterly reports, as agreed by ADB, on the carrying out of the JFPR Project. Such reports shall be submitted in such form and detail as ADB shall reasonably request.

17 LOA, Clause 14 (c) Within three months after physical completion of the JFPR Project, the Government jointly with AFI shall prepare and furnish to ADB a report, in such form and detail as ADB shall reasonably request, on the accomplishment of the purposes of the JFPR Assistance.

18 LOA, Clause 15 The Government and AFI shall cooperate with ADB to ensure that the JFPR Project is carried out promptly and effectively, and for this purpose, shall issue appropriate instructions to its officials, agents and representatives.

19 LOA, Clause 16 The Government and ADB shall, from time to time, at the request of either party, exchange views on the JFPR Project, and consult on any reports prepared by consultants or others and the implementation of any recommendation made in those reports.

20 LOA, Clause 17 ADB may use any reports prepared by consultants for any purpose which ADB may consider appropriate, and those reports may be made public unless otherwise agreed by the Government and ADB.

21 LOA, Clause 18 The Government may at any time request ADB in writing to terminate the JFPR Assistance.

22 LOA, Clause 19 (a) ADB may at any time suspend or, after consultation with the Government, terminate the JFPR Assistance if any circumstances arise which, in the

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Reference Covenants opinion of ADB, interfere or threaten to interfere with the successful implementation of the JFPR Project, the accomplishment of its purposes, or the execution of the JFPR Project in accordance with the terms and conditions of this Letter of Agreement.

23 LOA, Clause 19 (b) ADB may cancel the JFPR Assistance if implementation of the JFPR Project and related disbursements do not start within six months after the execution of this Letter of Agreement.

24 LOA, Clause 19 (c) ADB may cancel the JFPR Assistance if any ADB loan operations related to the JFPR Project are cancelled.

25 LOA, Clause 19 (d) If at any time ADB determines, (i) after consultation with the Government, that any amount of the JFPR Assistance will not be required for the purposes of the JFPR Project, or (ii) that corrupt, fraudulent, collusive or coercive practices, as determined by ADB, were engaged in by representatives of the Government or any beneficiary under the JFPR Project during the implementation of the JFPR Project or as part of the procurement or consultant selection, or the execution of a related contract, for the JFPR Project, without the Government having taken timely and appropriate action satisfactory to ADB to remedy the situation, or (iii) that the procurement of any goods and services, and recruitment of consultants to be financed out of the JFPR Assistance is inconsistent with the procedures set forth or referred to in this Letter of Agreement including the Annex, ADB may by notice to the Government terminate the right of the Government to make withdrawals from the JFPR Assistance. Upon the giving of such notice, the JFPR Assistance or the relevant portion thereof may be cancelled by ADB.

26 LOA, Clause 20 20. Upon completion of the JFPR Project, (i) any equipment financed under the JFPR Funds may be transferred by ADB to the Government or any agency designated by the Government on terms and conditions satisfactory to the Government and ADB, and (ii) any remaining balance in the imprest account, including interest of the income earned thereon will be returned to ADB.

27 LOA, Clause 21 21. ADB shall monitor the outcomes of the JFPR Project so that the results are fed back into the country’s poverty reduction operations.