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Reconnection to Central Asian Power System Project (RRP TAJ 52122-001)
Project Number: 52122 Grant Number: October 2018
Republic of Tajikistan: Reconnection to the Central
Asian Power System Project
Project Administration Manual
ABBREVIATIONS
ADB ─ Asian Development Bank ADF ─ Asian Development Fund AFS ─ audited financial statements BT ─ Barqi Tojik CAPS ─ Central Asian Power System CAREC ─ Central Asia Regional Economic Cooperation DMF ─ design and monitoring framework EMP ─ environmental management plan ECP ─ engineering, procurement and construction GACAP ─ governance and anticorruption action plan GDP ─ gross domestic product ICB ─ international competitive bidding IEE ─ initial environmental examination LIBOR ─ London interbank offered rate SOPI ─ sector operational performance improvement program NGOs ─ nongovernment organizations PAI ─ project administration instructions PAM ─ project administration manual PMU ─ project management unit QCBS ─ quality- and cost based selection RRP ─ report and recommendation of the president to the board SBD ─ standard bidding documents SPS ─ Safeguard Policy Statement TOR ─ terms of reference TJS ─ tajik somoni
Contents
I. PROJECT DESCRIPTION 1
A. Summary of Project Rationale 1 B. Impact and Outcome 1 C. Outputs 1
II. IMPLEMENTATION PLANS 1
A. Project Readiness Activities 1 B. Overall Project Implementation Plan 3
III. PROJECT MANAGEMENT ARRANGEMENTS 4
A. Project Implementation Organization – Roles and Responsibilities 4 B. Key Persons Involved in Implementation 4 C. Project Organization Structure 5
IV. COSTS AND FINANCING 6
A. Cost Estimates Preparation and Revisions 6 B. Key Assumptions 6 C. Detailed Cost Estimates by Expenditure Category 7 D. Allocation and Withdrawal of Grant Proceeds 8 E. Detailed Cost Estimates by Financier 8 F. Detailed Cost Estimates by Outputs/Components 9 G. Detailed Cost Estimates by Year 10 H. Contract and Disbursement Projections 11 I. Fund Flow Diagram 12
V. FINANCIAL MANAGEMENT 13
A. Financial Management Assessment 13 B. Disbursement 16 C. Accounting 16 D. Auditing and Public Disclosure 17
VI. PROCUREMENT AND CONSULTING SERVICES 18
A. Advance Contracting and Retroactive Financing 18 B. Procurement of Goods, Works and Consulting Services 18 C. Procurement Plan 18 D. Methods, Review and Procurement Plan 19 F. List of Indicative Packages (Contracts) Required under the Project 20 G. List of Awarded and Completed Contracts 20 H. Outline Terms of Reference for Project Implementation Consultant Services 20
VII. SAFEGUARDS 25
A. Environment 26 B. Land Acquisition and Resettlement (LAR) 26 C. Indigenous People 27 D. Prohibited investment activities 27
VIII. GENDER AND SOCIAL DIMENSIONS 27
A. Poverty and Social 27 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING 28
AND COMMUNICATION 28
A. Project Design and Monitoring Framework 28 B. Monitoring 30 C. Evaluation 30 D. Reporting 30
E. Stakeholder Communication Strategy 31 X. ANTICORRUPTION POLICY 31
XI. ACCOUNTABILITY MECHANISM 32
XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 32
Project Administration Manual Purpose and Process
1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the Government and the Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.
2. Barqi Tojik, the Executing Agency (EA) is wholly responsible for the implementation of ADB-financed project, as agreed jointly between the borrower and ADB, and in accordance with the Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by the executing and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At Grant Negotiations, the Recipient and ADB shall agree to the PAM and ensure consistency with the Grant agreement. Such agreement shall be reflected in the minutes of the Grant Negotiations. In the event of any discrepancy or contradiction between the PAM and the Grant Agreement, the provisions of the Grant Agreement shall prevail.
3. After ADB Board approval of the project's report and recommendations of the President (RRP),
changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.
ABBREVIATIONS
ADB ─ Asian Development Bank ADF ─ Asian Development Fund AFS ─ audited financial statements BT ─ Barqi Tojik DMF ─ design and monitoring framework EMP ─ environmental management plan GACAP ─ governance and anticorruption action plan GDP ─ gross domestic product ICB ─ international competitive bidding IEE ─ initial environmental examination SOPI ─ sector operational performance improvement program NGOs ─ nongovernment organizations PAI ─ project administration instructions PAM ─ project administration manual QCBS ─ quality- and cost based selection RRP ─ report and recommendation of the president to the board SBD ─ standard bidding documents SPS ─ Safeguard Policy Statement TOR ─ terms of reference TJS ─ tajik somoni
I. PROJECT DESCRIPTION A. Summary of Project Rationale
1. The proposed project will provide critical investment in relay protection equipment needed for the full parallel operation1 of Tajikistan electricity system with Uzbekistan and the Central Asian Power System (CAPS). This will enable export of summer surplus electricity from Tajikistan to Uzbekistan and more efficient utilization of regional energy resources. B. Impact and Outcome
2. The project is aligned with the impact of expanded regional energy trade supporting development of the national economy achieved by 2030. The outcome of the project will be improved regional energy efficiency among CAPS countries. C. Outputs
3. Output 1: Tajikistan and Uzbekistan electricity grids synchronized. The proposed project will install modern relays, circuit breakers, instrumental transformers and ancillary equipment and systems for reliable synchronous operation at eight 220kV and two 500kV interconnection points with CAPS. Replacing and upgrading the equipment will provide capacity to respond to technical incidents that may cause system failure and improve the reliability of the system.
4. Output 2: Interconnection between Tajikistan and Uzbekistan expanded. Two new 500kV interconnection points at the Sugd substation in Northern Tajikistan will be established. This entails construction of a total of 8km of 500kV transmission line, connecting the existing 500kV transmission line between Syrdarya and Lochin substations in Uzbekistan.2 This will increase the stability of parallel operation of the two systems.
5. Output 3: Capacity in Tajikistan for stable parallel operation improved. The EPC contractor will conduct capacity building of Barqi Tojik staff for the use of new protection equipment and overall grid operations. This capacity building will provide the knowledge of stable grid operation to Barqi Tojik.
II. IMPLEMENTATION PLANS A. Project Readiness Activities
Table 1: Project Readiness Activities
Indicative Activities
2018 2019 Responsibility
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
MoU Signing X ADB/GoT
Staff Review Meeting
X ADB
1 Parallel operation of power systems mean that all generators of interconnected system have the same phase
sequence. 2 This line already crosses Tajikistan but is not connected to any substations of the Tajikistan system.
2
Grant Negotiations
X ADB/GoT
Board Consideration
X ADB
Grant Signing (scheduled)
X ADB/GoT
Government legal opinion provided
X GoT
Grant Effectiveness (scheduled)
X ADB/GoT
ADB = Asian Development Bank, EA = executing agency, GoT = Government of Tajikistan.
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B. Overall Project Implementation Plan Table 2: Project Implementation Plan
6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
1. Grant Processing
1.1 MoU Signing ADB/GoT
1.2 Staff Review Meeting ADB
1.3 Grant Negotiations ADB / GoT
1.4 Board Circulation ADB
1.5 Board Approval ADB
1.6 Grant Signing ADB / GoT
1.7 Grant Effective Date ADB / GoT
2. Recruitment of Implementation Consultants
2.1 Preparation of EOI, RFP, incl. Govt. Approval BT/GoT
2.2 ADB Review and Approval ADB
2.3 Proposal Preparation Period Consultants
2.4 Technical Proposal Evaluation incl, Govt. Approval BT/GoT
2.5 ADB Review and Approval ADB
2.6 Financial Proposal Opening/ Evaluation & Govt. Approval BT/GoT
2.7 ADB Review and Approval ADB
2.8 Contract Signing and Effectiveness GoT/Consultant
2.9 Implementation Consultant Contract Execution Consultant
3. Protection system procurement and implementation
3.1 Update of Bidding Documents, incl. Govt. Approval Consultant/GoT
3.2 ADB Review and Approval ADB
3.3 Finalization with the Uzbekistan counterparts BT/Consultant/GoT
3.4 Bidding Period incl. Pre-bid Meeting Bidders
3.5 Technical Bid Evaluation incl, Govt. Approval Consultant/GoT
3.6 ADB Review and Approval ADB
3.7 Financial Bid Opening, Evaluation & Govt. Approval BT/Consultant/GoT
3.8 ADB Review and Approval ADB
3.9 Contract Signing BT/Bidder
3.10 Contract Effectiveness BT/Contractor
3.11 Construction, implementation BT/Contractor
Note: BT - Bark i Tajik ; EOI - Expression of Interest; FAT - Factory Acceptance Test; GoT - Government of Tajik istan; HVTL - high voltage transmission line; MVA - megavolt ampere; MoU - Memorandum of Understanding; RFP - Request for Proposal;
Activities Responsible
Party
2019 20202018 2021
2
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III. PROJECT MANAGEMENT ARRANGEMENTS A. Project Implementation Organization – Roles and Responsibilities
Table 3: Project Implementation Organization
Project Implementation organizations
Management Roles and Responsibilities
• Ministry of Finance Borrower and recipient
• Ministry of Energy and Water Resources
Development of energy sector strategy and overall supervision
of investment projects
• Barqi Tojik (Executing agency) Executing Agency for the works and for project implementation
consultancy services
• power generation, transmission and distribution
• technical supervision of the project implementation; and
• implement project
• Submission of withdrawal applications to ADB, retention of supporting documents, and submission of all reporting requirements
• Ensure compliance with project covenants
• Project Management Unit for Electro-Energy Sector*
• Day to day management of activities related to
execution of the Project
• ADB • Main/sole project financier
* - In 2006 an independent Project Management Unit (PMU) for Electro-Energy was established under the President of Tajikistan. PMU function is to support Barqi Tojik in implementation of investment projects financed by international financial organization including ADB, IsDB, KfW. PMU provides administrative support and reports to Barqi Tojik.
B. Key Persons Involved in Implementation
Executing Agency
Ministry of Energy and Water Resources
Mr. Usmonali Usmonzoda Position: Minister Telephone: + 992-37-221-87-30 Email address: [email protected]
Barqi Tojik
Mr. Mirzo Ismoilzoda Position: Chairman Telephone: +992 37 235 87 66
Email address: [email protected] HYPERLINK "mailto:" Office Address: 64 I.Somoni Street, Dushanbe
Project Management Unit for Electro-Energy Sector
Mr. Nazar Nazarzoda, Director Position: Executive Director Telephone: + 992-37-444-01-71 Email Address: [email protected] Office Address: 39 A. Kahorov Str., Dushanbe
ADB
Division Director Mr. Ashok Bhargava Position: Director, Energy Division, Central and West Asia Regional Department (CWRD/CWEN) Telephone No.: +632-632-6558 Email address: [email protected]
Mission Leader Mr. Yuki Inoue Position: Finance Specialist (Energy), CWEN/CWRD Telephone No.: +632-632-5803
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Email address: [email protected]
C. Project Organization Structure
Figure 1: Project Organization Structure
ADB = Asian Development Bank; EA = executing agency; EPC = engineering procurement construction; PMU = project management unit.
GOVERNMENT OF TAJIKISTAN
ADB Ministry of Finance
Ministry of Energy and Water Resources
Grant Agreement
Barqi Tojik
(EA)
On-granting Agreement
Project Agreement
Project Implementation
Consultant
Turnkey Contract for
Works
EPC Contract
Consultancy Contract
PMU
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IV. COSTS AND FINANCING
4. The Project costs consist of: (i) plant-design, supply and installation of modern relays, circuit breakers, instrumental transformers and ancillary equipment and systems for reliable synchronous operation 220kV and 500kV interconnection points with CAPS including establishments of two new 500kV interconnections; and (ii) project implementation consulting services, (iii) physical and price contingencies. The project will not incur any financing charges as the ADB grant will be on-granted to EA as an equity injection.
(i) Plant-design, supply and installation contracts. These will be financed by ADB. Government and Barqi Tojik will finance the taxes and duties.
(ii) Project implementation consulting services: This contract will be financed by ADB. Government and Barqi Tojik will finance the taxes and duties.
5. The cost of the PMU will be funded by the Barqi Tojik and is excluded from the Project cost. In addition, the cost of external audit will be borne by the EA and is excluded from the Project cost. No significant social mitigation costs were identified during the due diligence process. Any social mitigation costs identified during the project implementation will be covered by EA. A. Cost Estimates Preparation and Revisions 6. Cost estimates were prepared by ADB staff and the supervision consultants engaged under ADB’s G0417-TAJ: Wholesale Metering and Transmission Reinforcement Project.
B. Key Assumptions 7. Following key assumptions underpin the cost estimates and financing plan:
(i) Exchange rate: Tajikistan Somoni (TJS) 9.17 = $1.00 as of 5 July 2018
(ii) Price contingencies based on expected cumulative inflation over the implementation period are as follows:
Table 4: Escalation Rates for Price Contingency Calculation
Item 2018 2019 2020 2021 2022 Average
Foreign rate of price inflation 1.5% 3.0% 4.6% 6.2% 7.9% 4.7%
Domestic rate of price inflation 7.5% 15.0% 23.1% 31.7% 40.9% 23.6%
Source: Asian Development Bank estimates.
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C. Detailed Cost Estimates by Expenditure Category
Table 5: Detailed Cost Estimates by Expenditure Category ($ million)
Foreign Exchange
Local Currency
Total Cost Item
A. Base Cost a
1 Turnkey 25.7 2.8 28.5 2 Consulting services b 2.8 0.3 3.1 3 Taxes and duties - 4.9 4.9 Subtotal (A) : (1 + 2 + 3) 28.5 8.0 36.5
B. Contingencies c
1 Physical 1.5 0.4 1.9 2 Price 1.2 0.4 1.6 Subtotal (B) 2.7 0.8 3.5
Total (A+B) d 31.2 8.8 40.0 a In mid-2018 prices. Recurrent costs of the executing and implementing agencies are excluded as a centralized project management unit for energy sector manages all ADB-financed projects. b Includes external auditor costs for project financial statements to be financed by Barqi Tojik. Entity audit will be financed by an on-going loan between Barqi Tojik and the World Bank. c Physical contingencies computed at 5.0% of turnkey contract.
d No financing charges will be incurred as the ADB grant will be provided to Barqi Tojik as equity.
Source: Asian Development Bank staff estimates.
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D. Allocation and Withdrawal of Grant Proceeds
Table 6: Project Readiness Activities ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS - Grant XXXY-TAJ (ADF)
CATEGORY ADB FINANCING BASIS
Number Item Total Amount Allocated for ADB Financing ($)
Percentage of ADB Financing from the
Grant Accounta
1 Turnkeyb 28,500,000
100.0 percent of total amount due *
2 Consulting Services 3,000,000
100.0 percent of total amount due *
3 Unallocated 3,500,000 -
Total 35,000,000
* Exclusive of taxes and duties, except income tax and social tax, imposed within the territory of the Recipient. a Each item of expenditure is subject to the conditions of withdrawal as described in the Grant Agreement Schedule 2, paragraph 5 b Bid documents for the turnkey contract will only be issued after a written agreement on the specifications of the equipment from the Uzbekistan counterparts are obtained and provided to ADB.
Source: Asian Development Bank estimates.
E. Detailed Cost Estimates by Financier
Table 7: Detailed Cost Estimates by Financier / Financing Source ($ million) ADB ADF Government/Barqi Tojik
Total Cost Amount
% of cost category
Amount % of cost category
Item (A) (A)/(E) (C) (C)/(E) (E)
A. Base Cost a 1 Turnkey 28.5 100.0% - 0.0% 28.5
2 Consulting services b 3.0 97.0% 0.1 3.0% 3.1 3 Taxes and duties - 0.0% 4.9 100.0% 4.9 Subtotal (A) : (1 + 2 + 3) 31.5 86.3% 5.0 13.7% 36.5
B. Contingencies c
1 Physical 1.9 100.0% - 0.0% 1.9 2 Price 1.6 100.0% - 0.0% 1.6 Subtotal (B) 3.5 100.0% - 0.0% 3.5
Total (A+B) 35.0 87.5% 5.0 12.5% 40.0
ADB = Asian Development Bank, ADF = Asian Development Fund. a In mid-2018 prices. Recurrent costs of the executing and implementing agencies are excluded as a centralized project management unit for energy sector manages all ADB-financed projects. b Includes external auditor costs for project financial statements to be financed by Barqi Tojik. Entity audit will be financed by an on-going loan between Barqi Tojik and the World Bank. c Physical contingencies computed at 5.0% of turnkey contract.
d No financing charges will be incurred as the ADB grant will be provided to Barqi Tojik as equity.
Source: Asian Development Bank staff estimates.
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F. Detailed Cost Estimates by Outputs/Components
Table 8: Detailed Cost Estimates by Implementing Entity ($ million)
Output 1 Output 2 Output 3 Total Amount % of
Cost Category
Amount % of Cost Category
Amount % of Cost
Category Item
A. Base Cost a 1 Turnkey 28.5 15.7 55.0% 11.4 40.0% 1.4 5.0%
2 Consulting services b 3.1 1.2 40.0% 1.2 40.0% 0.6 20.0% 3 Taxes and duties 4.9 2.6 53.5% 2.0 40.0% 0.3 6.5% Subtotal (A) : (1 + 2 + 3) 36.5 19.5 53.5% 14.6 40.0% 2.4 6.5%
B. Contingencies c
1 Physical 1.9 1.0 53.5% 0.8 40.0% 0.1 6.5% 2 Price 1.6 0.9 53.5% 0.6 40.0% 0.1 6.5% Subtotal (B) 3.5 1.9 53.5% 1.4 40.0% 0.2 6.5%
Total (A+B) 40.0 21.4 53.6% 16.0 40.0% 2.6 6.4% a In mid-2018 prices. Recurrent costs of the executing and implementing agencies are excluded as a centralized project management unit for energy sector manages all ADB-financed projects. b Includes external auditor costs for project financial statements to be financed by Barqi Tojik. Entity audit will be financed by an on-going loan between Barqi Tojik and the World Bank. c Physical contingencies computed at 5.0% of turnkey contract.
d No financing charges will be incurred as the ADB grant will be provided to Barqi Tojik as equity.
Source: Asian Development Bank staff estimates.
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G. Detailed Cost Estimates by Year
Table 9: Detailed Cost Estimates by Year ($ million) Total
Cost
Year 1 Year 2 Year 3 Year 4 Item 2019 2020 2021 2022
A. Base Cost a
1 Turnkey 28.5 2.9 11.4 14.2 - 2 Consulting services b 3.1 0.7 1.2 1.2 - 3 Taxes and duties 4.9 0.4 2.0 2.5 - Subtotal (A) : (1 + 2 + 3) 36.5 4.0 14.6 17.9 -
B. Contingencies c
1 Physical 1.9 - - - 1.9 2 Price 1.6 - - - 1.6 Subtotal (B) 3.5 - - - 3.5
Total (A+B) 40.0 4.0 14.6 17.9 3.5 a In mid-2018 prices. Recurrent costs of the executing and implementing agencies are excluded as a centralized project management unit for energy sector manages all ADB-financed projects. b Includes external auditor costs for project financial statements to be financed by Barqi Tojik. Entity audit will be financed by an on-going loan between Barqi Tojik and the World Bank. c Physical contingencies computed at 5.0% of turnkey contract.
d No financing charges will be incurred as the ADB grant will be provided to Barqi Tojik as equity.
Source: Asian Development Bank staff estimates.
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H. Contract and Disbursement Projections
Baseline Projections for Contract Awards and Disbursement
Contract Awards Disbursements
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
2018 0.00 0.00 0.00 0.00 0.00 2018 0.00 0.00 0.00 0.00 0.00
2019 0.00 0.00 31.50 0.00 31.50 2019 0.00 0.00 0.20 3.20 3.40
2020 0.00 0.00 0.00 0.00 0.00 2020 0.30 0.30 11.70 0.30 12.60
2021 0.00 0.00 0.00 0.00 0.00 2021 0.30 4.10 7.00 4.10 15.50
2022 0.00 3.50 0.00 0.00 3.50 2022 0.00 3.50 0.00 0.00 3.50
Total: 35.00 Total: 35.00
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2018 2019 2020 2021 2022
Cumulative ContractAwards
$ million
12
I. Fund Flow Diagram
Figure 2: Fund Flow Diagram
Barqi Tojik
PMU Contractors/ Consultants
Invoice/ Receipt
Direct Payment & Commitment Procedure
On-granting Agreement
Republic of Tajikistan (Ministry
of Finance)
Asian Development
Bank
Grant Agreement
Withdrawal Application and Invoice/Receipt
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V. FINANCIAL MANAGEMENT A. Financial Management Assessment 8. The financial management assessment (FMA) for the project builds on the findings and recommendations identified under previous FMAs conducted on Barqi Tojik, and focuses on the major changes and deviations from ADB’s guidelines. The financial management assessment (FMA) was conducted in July 2018 following ADB’s Guidelines for the Financial Management and Analysis of Projects and the Financial Due Diligence: A Methodology Note and based on previous assessments.3 The FMA considered the capacity of Barqi Tojik, including funds-flow arrangements, staffing, accounting and financial reporting systems, financial information systems, and internal and external auditing arrangements. 9. Barqi Tojik’s financial management capacity requires improvement. External auditing for fiscal years (FY) 2015 and 2016 based on International Standards on Auditing (ISA) both indicate issues including (i) valuation of inventory, (ii) revaluation of assets, (iii) records on account receivables and payables, and (iv) data conciliation of revenues. However, substantial efforts are being made to strengthen the financial management capacity. The financial statements are now reported based on the International Financial Reporting System, as required by the Law of Accounting and state’s decrees. 4 Automated accounting system, 1C has been introduced to Barqi Tojik with support from the World Bank. Each of the 30 subordinate entities under the holding company prepares its financial report which is consolidated at the holding company level. Although the independence of the unit is still limited, Barqi Tojik also has an internal audit unit established at the head office. External independent auditors are engaged to undertake auditing based on ISA for the holding company in compliant with the statutory requirements.5
10. It is concluded that the overall financial management risk of Barqi Tojik is substantial. Barqi Tojik has agreed to implement an action plan as key measures to address the deficiencies. The financial management action plan is provided in Table 11.
Table 10: Financial Management Risk Assessment and Risk Mitigation Measures
Risk Description Risk Assessment Management Plan or Mitigation Measures
Inherent Risk
Country specific Moderate Reporting based on the International Financial Reporting Standards is required by law. However, there is very limited capacity among auditors within the country. Barqi Tojik’s entity financial statement audits are financed by the World Bank and engages international auditors. Project financial statements are audited by another international audit firm on a bloc audit scheme through ADB’s resident mission for all ADB-financed projects in Tajikistan.
3 ADB. 2013. Report and Recommendation of the President to the Board of Directors: Proposed Grant to the Republic
of Tajikistan for the Golovnaya 240 MW Hydropower Plant Rehabilitation Project. Manila. 4 Government’s Decree 428 of 4 November 2002 for “International Financial Reporting Standards;” Government’s
Decree 231 of 2 May 2010 for “Additional arrangements for implementing International Financial Reporting Standards in Republic of Tajikistan”; and President’s Decree 702 of 25 March 2011 for the “Law of Accounting”.
5 President’s Decree 626 for the “Law on Financial Management and Internal Control”; and President’s Decree 631 for the “Law on Internal Audit”.
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Risk Description Risk Assessment Management Plan or Mitigation Measures
Entity Specific Barqi Tojik has overall weak financial management capacity. Issues of (i) valuation of inventory, (ii) revaluation of assets, (iii) records on account receivables and payables, and (iv) data conciliation of revenues continue to be noted by external auditors.
Substantial External auditing of the entity and close monitoring of the results need to be maintained. The World Bank finances the external auditors’ costs for longer than the expected ADB project period, and ADB will closely coordinate on the engagement terms of reference as well as the progress made in audits. ADB-funded Sector Operational Performance Improvement Project (SOPI)a will continue to provide extensive support to Barqi Tojik through the sector reform process. As Barqi Tojik is expected to be unbundled in the near future, Barqi Tojik has completed account separation of the generation, transmission and distribution businesses with support from SOPI consultants.
Project Risk
1. Funds flow arrangements
Moderate Direct payment method (primary method) and Letter of Commitment will be used for the contracts financed by ADB. Advance fund procedure with statement of expenditure will not be used. Barqi Tojik has a satisfactory record with previous ADB projects and has been on-track on submission
of audited project financial reports.
2. Staffing Moderate The SOPI consultants will address staffing deficiencies through extensive training as defined in their terms of reference. Reorganization will consider appropriate allocation of senior staff members to ensure knowledge is retained.
3. Accounting policies, procedures, and systems
Substantial The SOPI consultants (G0213-TAJ), together with World Bank assistance for financial capacity development, has worked to complete the implementation of IFRS together with a computerised accounting system. Asset valuation remains an on-going issue, and this will be monitored. External audit based on ISA has been conducted and to be maintained.
4. Internal audit High The SOPI consultants (G0213-TAJ) will continue providing financial capacity development to to improve Barqi Tojik’s internal audit function. In the reform process, the introduction of compliance officer is also envisaged to monitor the financial flows among unbundled Barqi Tojik companies.
5. External audit Moderate With assistance from SOPI, together with World Bank assistance for financial capacity development, external auditors have provided qualified opinion in the FY2015 and FY2016 statements unlike disclaimer of opinions in the past. This will likely continue for FY2017 and with the engagement of external auditors with World Bank financing, this will be monitored.
15
Risk Description Risk Assessment Management Plan or Mitigation Measures
6. Reporting and monitoring
Substantial Ongoing corporate restructuring under G0213-TAJ, will improve management reporting practices and result in better decision-making. A new accounting system and following ADB procedures at the PMU, assisted by project implementation consultants, should result in the timely preparation of meaningful reports.
7. Information systems Moderate Barqi Tojik runs a 1-C based platform of accounting system (introduction was supported by the World Bank), and information systems pose much less significant risk than in the past. As Barqi Tojik goes through the reform process of unbundling, the use of information systems by unbundled entities will require monitoring to ensure adequate systems are installed at each level of generation, transmission and distribution.
Overall Substantial
ADB = Asian Development Bank; IFRS = international financial reporting standards; ISA = international standards on auditing; PMU = project management unit; SOPI = sector operational performance improvement program. a. Funded by G0213-TAJ Source: Asian Development Bank and technical assistance consultants.
Table 11: Financial Management Action Plan
Action Responsibility Resources Timing
Continue annual engagement of external auditors and conduct external audits based on International Standards of Auditing.
Barqi Tojik World Bank Annually within Q4 for ensuring engagement for the subsequent year. Annualy by end-Q2 for audited financial reports
Roadmap of resolving issues raised by auditors on revenues, receivables and advances accounting
Barqi Tojik Barqi Tojik By Q4 2018
Complete the revaluation of assets (as started by World Bank support)
Barqi Tojik Barqi Tojik Progress to be reported semi-annually at review missions, and targeted by end-2019 for substantial progress.
Accounting manual developed separately for generation, transmission and distribution segments of the operations.
Barqi Tojik ADB (G0213, Sector Operation Performance Improvement Program)
December 2018
ADB = Asian Development Bank,
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B. Disbursement
1. Disbursement Arrangements for ADB Funds
11. The grant proceeds will be disbursed in accordance with ADB's Loan Disbursement Handbook (2017, as amended from time to time)6 and detailed arrangements agreed upon between the Ministry of Finance, Barqi Tojik and ADB. Online training for project staff on disbursement policies and procedures is available.7 Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control. 12. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),8 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5) to subprojects financed by ADB. 13. The Project uses direct payment method, reimbursement method and commitment letter procedure for the turnkey contract and for the consulting services. PMU, assisted by project implementation consultants, will prepare disbursement projections, collect supporting documents, and prepare and send withdrawal applications to ADB.
14. Before the submission of the first withdrawal application (WA), the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person. The minimum value per WA is stipulated in the Loan Disbursement Handbook (2017, as amended from time to time). Individual payments below such amount should be paid (i) by Barqi Tojik and subsequently claimed to ADB through reimbursement, unless otherwise accepted by ADB. The borrower should ensure sufficient category and contract balances before requesting disbursements. 15. No withdrawal shall be made from the grant account until: Barqi Tojik have entered into a legally binding agreement whereby the Government agrees to provide the proceeds of the proposed ADB grant to Barqi Tojik as an equity injection (Equity Injection Agreement), such Equity Injection Agreement has become effective in accordance with its terms, and a copy of such Equity Injection Agreement has been furnished to ADB.
C. Accounting 16. The EA will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following the International Financial Reporting Standards. The EA will prepare consolidated project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices. PMU to maintain separate books and records by funding source for all expenditures incurred on the project. The PMU will prepare consolidated project financial statements in accordance with the government’s accounting laws and regulations which are consistent with
6 The handbook is available electronically from the ADB website (http://www.adb.org/documents/ loan-disbursement-handbook 7 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning 8 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
17
international accounting principles and practices9.
D. Auditing and Public Disclosure 17. The EA will cause the detailed consolidated project financial statements to be audited in accordance with International Standards on Auditing and with the government's audit regulations, by an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by the EA. 18. The audited entity financial statements, together with the auditor’s report and the management letter including opinion on compliance with financial covenants, will be submitted in the English language to ADB within 1 month after their approval by the relevant authority.
19. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the grant were used only for the purpose(s) of the project; and (iii) whether the borrower or EA was in compliance with the financial covenants contained in the legal agreements (where applicable).
20. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.
21. The government, Barqi Tojik and PMU have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.10 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.
22. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy 2011.11 After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter, additional auditor’s
9 For details, see ADB (2013) Financial Management Technical Guidance Note: Project Financial Reporting and Auditing,
Manila, available at: http://www.adb.org/sites/default/files/project-financial-reporting-auditing.pdf. 10 ADB’s approach and procedures regarding delayed submission of audited project financial statements:
(i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.
(ii) When audited project financial statements are not received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a) inform the executing agency of ADB’s actions; and (b) advise that the loan may be suspended if the audit documents are not received within the next 6 months.
(iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.
11 Public Communications Policy: http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications.
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opinions, and audited entity financial statements will not be disclosed.12
VI. PROCUREMENT AND CONSULTING SERVICES A. Advance Contracting and Retroactive Financing 23. Advance contracting and retroactive financing will not be used. B. Procurement of Goods, Works and Consulting Services 24. Procurement (including consulting services) will follow ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). 1. Engineering Procurement Construction 25. One plant-design, supply and install contract (EPC) will be procured by Barqi Tojik following open competitive bidding procedures (OCB) using ADB's single-stage two-envelope bidding method without prequalification. One plant-design, supply and install contract (EPC) for emergency control system (ECS) will be procured by Barqi Tojik by direct contracting to DS Group in Kazakhstan. 26. The ECS is a key component of the protection functions in cases such as a major failure in parts of the CAPS needs to be contained to avoid spreading of the incident. Uzbekistan is equipped with a specific ECS, and full compatibility of ECSs at the both ends of the transmission lines interconnecting two power grids is the highest priority for regional grid stability. Installation of the same ECS as Uzbekistan is a technical requirement. 27. After assessment and discussions among Barqi Tojik, Uzbekenergo, Srednazenergosetproject and Coordinating Dispatch Center-Energy, it was concluded that there are only two suppliers of this specific system worldwide for its proprietary nature, and only one company, DS Group in Kazakhstan, meets ADB’s eligibility criteria. Given this background, item (b) on standardization of equipment and (c) on proprietary item in clause 2.17 on direct contracting of ADB’s Procurement Regulations is applicable to this component. 28. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages is in Section C. 2. Consulting Services 29. One consulting firm will be recruited as implementation consultants during entire project implementation with an estimated 130 person-months input. Quality- and cost-based selection (QCBS) method will be the method for recruiting consulting firms with a standard quality: cost ratio of 90:10. The outline terms of reference for consulting services is in Section H. C. Procurement Plan
Basic Data
12 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2011.
Public Communications Policy. Paragraph 97(iv) and/or 97(v).
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Project Name: Reconnection to Central Asian Power System Project
Project Number: 52122 Approval Number:
Country: TAJIKISTAN Executing Agency: JSC Barqi Tojik
Project Procurement Classification: B Implementing Agency:
Procurement Risk: Substantial
Project Financing Amount: $35 million ADB Financing: $35 million Cofinancing (ADB Administered): None Non-ADB Financing: None
Project Closing Date: 31 December 2021
Date of First Procurement Plan: 16 October 2018 Date of this Procurement Plan: 16 October 2018
D. Methods, Review and Procurement Plan
30. Except as the Asian Development Bank (ADB) may otherwise agree, the following methods shall apply to procurement of goods, works and consulting services.
Procurement of Goods and Works
Method Threshold Comments
Open Competitive Bidding (OCB) for Works – International Advertisement
$3,000,000 All contracts OCB (International) works will be reviewed using prior review procedure.
OCB for Goods – International Advertisement $2, 000,000 All contracts OCB (International) goods will be reviewed using prior review procedure.
Consulting Services
Method Comments
Quality and Cost Based Selection (QCBS) Prior review of all contracts
E. List of Active Procurement Packages (Contracts) 31. The following table lists goods, works and consulting services contracts for which the procurement activity is either ongoing or expected to commence within the procurement plan duration.
Goods and Works
Package Number5
General Description
Estimated Value
Procurement Method
Review Bidding
Procedure Advertisement
date Comments
Package 1
Relay protection
$14.5 mln OCB International
Advertisement
Prior 1S2E January 2019 Plant
Package 2
Emergency control system
$14.0 mln Direct contracting
Prior - - Plant
Consulting Services
Package Number
General Description
Estimated Value
Selection method
Review Type of
Proposal Advertisement
date Comments
Package 1
Implementation consultants
$3.0 mln QCBS Prior FTP January 2019 International Advertisement:
90:10
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F. List of Indicative Packages (Contracts) Required under the Project
32. The following table lists goods, works and consulting services contracts for which the procurement activity is expected to commence beyond the procurement plan duration and over the life of the project (i.e. those expected beyond the current procurement plan duration).
Goods and Works
Package Number
General Description
Estimated Value
Procurement Method
Review Bidding
Procedure Comments
Consulting Services
Package Number
General Description
Estimated Value
Selection Method
Review Type of
Proposal Comments
G. List of Awarded and Completed Contracts
33. The following table lists the awarded contracts and completed contracts for goods, works and consulting services.
Goods and Works
Package Number
General Description
Contract Value
Date of ADB Approval of
Contract Award Date of Completion Comments
Consulting Services
Package Number
General Description
Contract Value
Date of ADB Approval of
Contract Award
Date of Completion
Comments
H. Outline Terms of Reference for Project Implementation Consultant Services
1. Introduction 34. During the Soviet Union time, power systems in Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan were developed and optimized to operate as a synchronized regional grid commonly known as Central Asian Power System (CAPS). During that period, Tajikistan was connected to CAPS via two 500kV and eight 220kV transmission lines. In November 2009, in response to a grid failure, Tajikistan was disconnected from CAPS. This failure was partially attributed to outdated transmission relay protection system, which failed to promptly operate and isolate the incident. The failure highlighted the obsolete infrastructure systems left from the former Soviet Union era that had neither been properly maintained nor replaced, compromising the integrity and reliability of the protection systems. 35. In early 2018 the government of Tajikistan and Uzbekistan agreed to reconnect Tajik power system to CAPS and synchronize the power system operations. Well-coordinated protection relays and their integrity are essential for transmission line operations, particularly for the parallel operation of the regional power systems. The proposed project will provide critical investment needed for the full parallel operation. In particular, the proposed project will:
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(i) install modern relays, circuit breakers, instrumental transformers and ancillary
equipment and systems for reliable synchronous operation at eight 220kV and two 500kV interconnection points with CAPS;
(ii) establish two new 500kV interconnection points with CAPS; and, (iii) provide capacity building to Barqi Tojik staff to improve reliability of parallel operations
of Tajikistan power system with Uzbekistan and CAPS. 36. Barqi Tojik, (BT), the Executing Agency for the project, is the vertically-integrated state owned electric power utility in Tajikistan. The Project Management Unit (PMU) of BT intends to engage a consulting company, to be known as the Implementation Consultant (IC), to provide assistance with management, supervision and commissioning of proposed project. A turnkey contract will be used to effect the project works. 37. The IC’s shall be an engineering consulting firm having sufficient international experience with similar projects, preferably in former Soviet Union countries. The IC firm shall have competency in Power Management System made up of the Fast Load Shedding System and Generation Control, Protection Relay Upgrading, Tele-control upgrading and updating, HV items in substations refurbishment and other components of the project.
38. The project will establish parallel operation at the following interconnection points:
i. Phase 1a: 1. Connection of existing lines for transit purposes:
a. 500 kV HV Line Regar - Surkhan (L-508); b. 220 kV HV Line Regar - Gulcha (L-R-G); c. 220 kV Line Regar - Sherabad (L-R-Sh);
2. Commissioning of new units: a. Entry of 500 kV HV Line Syrdarya Thermal Power Plant - Uzbekistan (L-503)
into Sughd Substation with creation of new 500 kV HV Lines Syrdarya Thermal Power Plant - Sughd and Sughd – Uzbekistan Substation.
ii. Phase 1b and 2: 1. Connection of existing lines for transit purposes
a. 220 kV HV Line Sughd - Syrdarya Thermal Power Plant (L-20-S-1); b. - 220 kV HV Line Sughd - Syrdarya Thermal Power Plant (L-20-S-2); c. - 220 kV HV Line Sughd - Syrdarya Thermal Power Plant (L-20-US-1); d. - 220 kV HV Line Sughd - Syrdarya Thermal Power Plant (L-20-US-2). e. Rogun HPP 2x400 MW (Phase 1); f. 500 kV HV Line Rogun HPP - Dushanbe 1; g. 500 kV HV Line Rogun HPP - Dushanbe 2; h. 220 kV HV Line Rogun HPP - Rogun 1; i. 220 kV HV Line Rogun HPP - Rogun 2; j. Open distribution system-220 kV Dushanbe Thermal Power Plant 1
(Dushanbe); k. 220 kV HV Line Dushanbe Thermal Power Plant 2 - Dushanbe Thermal
Power Plant 1; l. 220 kV HV Line Aini - Rudaki; m. Substation 220/35/10 kV Dangara Free Economic Zone; n. 220 kV HV Line Shar-Shar – Dangara Free Economic Zone; o. 220 kV HV Line Sangtuda HPP – Dangara Free Economic Zone.
2. Objectives of the Assignment
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39. Principal objective of the assignment is to assist the PMU with implementing the wholesale the proposed project. Primary objectives are:
(i) Effective project administrative support for the PMU. (ii) Effective design and engineering input. (iii) Effective contract management. (iv) Effective financial management. (v) Effective quality control of materials, equipment, systems, software and
communications. (vi) Effective management of relay protection system installation, testing,
commissioning, handover and guarantee. (vii) Assist in reporting that is complied with ADB and Government of Tajikistan
procedures. (viii) Effective environmental and social management and reporting (ix) Capacity enhancement of PMU.
40. Within one month from the effective contract date the Implementation Consultant (IC) will prepare and submit to PMU for approval an Inception Report detailing the schedule and methods of services he is to provide, including the training program for capacity enhancement of the PMU. The Inception Report shall include a project implementation schedule for the project. The implementation schedule shall be sustained throughout the assignment with revisions as required. Revisions shall be documented during project progression. The Inception Report should be not more than 30 pages (excluding attachments). 41. Before the commencement of the construction stage the IC shall establish a project management system to maintain records and coordinate the registration, handling and filing of correspondence, construction drawing data base, progress monitoring, cost control, and reporting. 42. Project supervision shall be exercised by the IC:
A. Management and Monitoring of Works (i) Review project schedules, monitor progress and report on conformity or
otherwise. (ii) Monitor and report on physical installation works. (iii) Monitor and report on communication systems installation. (iv) Monitor and report on site and electrical safety. (v) Advise PMU on forward requirements for system outages. (vi) Review and endorse Contractor’s environmental management plan (CEMP), (vii) Supervise implementation of CEMP. (viii) Assist in implementation of Land Acquisition and Resettlement Plans (LARP). (ix) Assist the executing agency and the local government with necessary public
consultations (x) Examine and report on equipment manufacturers’ test and conformity
documentation. (xi) Witness tests and review test results from contractor where tests are not
directly witnessed. (xii) Advise PMU about any unsatisfactory test or works. Suggest remedial action
or additional costs involved with replacement. (xiii) Review contractor’s test and commissioning procedures. (xiv) Assist PMU with witnessing commissioning tests. (xv) Issue acceptance certificates.
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43. IC should ensure that any land acquisition and involuntary resettlement are fully compensated, and other requirements stipulated in the LARP are fully implemented before the commencement of works;
B. Financial Control 44. Project financial control shall be exercised by the IC:
(i) Agreeing payment schedule (when needed). (ii) Certifying payments following verification of each claim. (iii) Analyzing and reporting on financial position. (iv) Review and report on variation or extension claims. (v) Assist PMU in settling claims.
C. Reporting and Monitoring
(i) Inception report. (ii) Weekly project meetings requiring agenda and minutes. (iii) Monthly progress reports. (iv) Quarterly reports. (v) Annual reports. (vi) Completion report (vii) Monitor BT compliance with the grant agreement technical covenant and assist
PMU to prepare and submit reports to ADB; track project outputs, outcomes and impacts against ADB's Design Monitoring Framework.
D. Training Coordination
45. Training will be provided by the contractor. Coordination of training involving BT personnel and PMU shall be effected by the IC. Coordination of training will also necessitate the IC being involved in the personnel selection process. 46. All reports shall be in English and Russian. Hard copies of reports in English and Russian will be required in addition to the soft copies. Hard copy quantities will be determined according to BT requirements.
3. Consultant Qualifications, Experts and Person-Months 47. The following IC team is required: 1. International Experts: Proficiency in the English language is essential, while ability in the Russian language is advantageous. Previous work experience in Tajikistan and/or other Central Asian countries, as well as work experience with ADB technical assistance and ADB financed projects, is desirable. All team members should have experience in working with 400/500kV and 220kV power systems. The members of the Consultant’s team, the expert shall assist the team leader in ensuring the quality of the overall outputs and deliverables in a timely manner.
a) Team Leader-Protection Relay Engineer, 18 person-months: The expert shall be suitably qualified in a related engineering discipline. In addition, the key expert shall have 15 years of experience of working with power utilities, particularly with design, installation, commissioning, and maintenance of relays and settings
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calculation and 5 years of team leadership. Specific work experience with transmission line commissioning is valuable.
b) Transmission Line Engineer, 10 person-months: The expert shall be suitably
qualified in an engineering discipline. In addition, the key expert shall have 10 years of work experience with power transmission grid works refurbishments, renovations, commissioning, with and proven knowledge in Protection Relays, Communication and Control.
c) Tele-control Engineer, 10 person-months: The expert shall be suitably qualified
in a related engineering discipline. In addition, the key expert shall have 8 years of experience of working with power utilities, particularly with scadas design installation and commissioning. Specific work experience with operation transmission grid systems is valuable.
e) Automation Engineer, 6 person-months: The expert shall be suitably qualified in
a related engineering discipline. In addition, the key expert shall have 8 years of experience of working with power utilities, particularly with commissioning, maintenance and set up of Frequency control System and Automatisms. Specific work experience with Power Management System is valuable.
f) Substation Engineer, 10 person-months: The national transmission substation engineer shall have a bachelor’s degree in a related engineering discipline and shall have 8 years of related work experience. The expert will take on all the activities related with HV items involved in the study as well as the overall subjects in the Substation.
g) Civil Engineer, 3 person-months: The national transmission civil engineer shall
have a bachelor degree in a related engineering discipline, and shall have 5 years of related work experience. The expert shall take on the civil work subject, steel structure renovation, constructive items in substations and lines.
j) Environmental and Social Safeguards Expert, 3 person-months: The expert
shall preferably have a bachelor or higher degree in a related discipline. In addition, the key expert shall have a minimum of 8 years of experience of working on environmental matters out of which at least 4 years associated with power utilities. Working in cooperation with the team leader, electrical engineer, transmission substation engineer and social specialist, the environmental safeguards expert shall:
2. National Experts. International consultants will be assisted by national consultants. All national consultants will have at least a bachelor’s degree from an established university in Tajikistan or other countries and five years of experience in their area of expertise. Proficiency in the English language is advantageous.
a) Protection Relay Engineer, 20 person-months: The protection relays engineer shall have a bachelor degree in an engineering discipline, and shall have 10 years of related work experience. The expert shall assist the international Protection Relays Engineer.
b) Automation Engineer, 8 person-months: The national automation engineer shall
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have a bachelor’s degree in an engineering discipline, and preferably with 8 years of related work experience. The expert shall assist the international automation engineer.
c) Transmission engineer, 18 person-months: The expert shall have a bachelor’s
degree in a related discipline and shall have 8 years of related work experience. The expert shall of assist the international transmission engineer.
c) Communications Specialist, 18 person-months: The national communication
expert shall have a bachelor’s degree in a related discipline and shall have 5 years of related work experience. The expert shall of assist the international communication specialist.
e) Environmental and Social Safeguards Expert, 6 person-months: The national
environmental safeguards expert shall have a bachelor degree in a related discipline, and minimum 5 years of related work experience. The expert shall assist the international environmental safeguards.
4. Counterpart Support 48. PMU/Barqi Tojik will provide and make available to the consultants, free of charge, the following to help the consultant carrying out the assignment:
(i) counterpart staff/technical support; (ii) office space: sufficient office space for the consultant team, with national and
international telephone lines, electricity and air conditioning/heating, and internet connections;
(iii) office furniture: desks, office chairs, and bookshelves/cabinets adequate to accommodate the full complement of international and local consultants; and
(iv) organizational support: assistance in all arrangements for workshops, meetings, and field visits; and access to required data, maps and other relevant information
49. The consultants will be responsible for their personal computers and other facilities for producing reports.
VII. SAFEGUARDS
No. of
expert
P-M per
expert
Total
P-M
No. of
expert
P-M per
expert
Total
P-M
1 Team Leader-Protection Relay Engineer 1 18 18 1 20 20
2 Transmission Line Engineer 1 10 10 1 18 18
3 Tele-control Engineer 1 10 10 1 18 18
4 Automation Engineer 1 6 6 1 8 8
5 Substation Engineer 1 10 10
6 Civil Engineer 1 3 3
7 Environmental and Social Safeguards Expert 1 3 3 1 6 6
TOTAL 7 60 60 5 70 70
Positions
International Consultants National Consultants
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A. Environment
50. PMU shall ensure that the design, construction, operation and maintenance of the facilities under the project are carried out in accordance with ADB's Safeguard Policy Statement (2009), the applicable laws and regulations in Tajikistan, and the Initial Environment Examination (IEE). The PMU shall ensure that potential adverse environmental impacts arising from the Project are avoided, minimized or mitigated by implementing all the mitigation and monitoring measures stipulated in the Environment Management Plan (EMP). PMU shall ensure that:
(i) the EMP is updated by the Contractor prior to the implementation of civil works and Contractors EMP is prepared;
(ii) Contractor has sufficient resources to implement and record the implementation of the EMP;
(iii) the detailed engineering design and civil works and other contracts for the Project incorporate applicable environmental measures identified in the IEE and the EMP;
(iv) PMU, with the help of implementation consultant, shall submit to ADB semi-annual environmental reports for the Project within 1 month of the closure of each half of the calendar year during Project implementation, and the reports shall include a review of the progress on environmental measures in the IEE and EMP, monitoring of such measures, problems encountered and remedial measures taken; and
(v) The contractor is supervised to ensure compliance with the requirements of the IEE and the EMP.
51. Contractor is responsible for:
(i) Incorporation of the recommendations of the IEE/EMP into the project design. (ii) Preparation of the Contractors (site-specific) EMP, based on generic EMP prepared
during the project preparation (iii) Implementation of the EMP during construction (iv) Monitoring and reporting the progress of EMP implementation
52. IC is responsible for:
(i) Supervision of the contractors environmental performance (ii) Reviewing and approval of the contractor’s EMP (iii) Preparing semi-annual environmental monitoring reports for ADB.
B. Land Acquisition and Resettlement (LAR)
53. The project is classified as Category B for involuntary resettlement impacts. Under output 2 of the project, two new 500kV interconnection points at the Sugd substation will be established and this will entail construction of a total of 1.5km of 500kV transmission lines and approximately 8 towers. It is expected that the construction of the 1.5km-transmission lines and towers will require approximately 7 land plots with 900 square meters which have been used by 7 households. Draft LARP is prepared to provide compensation for all the losses caused by the project. Public consultations were conducted in August and September 2018. A Grievance Redress Mechanism (GRM) is in place in accordance with the LARF to assist affected persons to resolve grievances and complaints. EA will submit semiannual safeguards monitoring reports to ADB for review and disclosure. No involuntary resettlement impacts are expected under output 1 and 3.
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C. Indigenous People
54. Classified as category C under ADB's Safeguard Policy Statement, 2009. The Project is not expected to affect indigenous people as defined under the ADB's Safeguard Policy Statement (2009). D. Prohibited investment activities
55. Pursuant to ADB’s Safeguard Policy Statement (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the Safeguard Policy Statement (2009).
VIII. GENDER AND SOCIAL DIMENSIONS
A. Poverty and Social
56. A reliable supply of electricity brings very significant benefits to communities (especially poorer ones), including enhanced incomes and livelihoods, improved health and education, better security, and a generally higher standard of living. In Tajikistan the winter months are particularly difficult for those who lack reliable electricity, and cannot afford adequate alternatives (or must spend much time seeking fuel). Women in particular will benefit from the project because of their household and family responsibilities, including gathering fuel for cooking, heating, and processing water; and caring for children, the sick, and the elderly. Electricity also offers women many more opportunities for home-based enterprise and income generation, and has positive impacts on public facilities such as schools and health centers. 57. However, because this project will provide protection equipment in existing sub-stations (which will then supply electricity to the entire grid) as well as a new transmission line and towers, the benefits (although substantial) are generalized and indirect, and do not target particular communities. Similarly, there will not be specific power-supply benefits for particular social groups such as women or the poor, beyond those that accrue to electricity consumers in general. The technological nature of the project allows little scope for social components, and the project provides no opportunities for specific pro-poor initiatives. The project can only provide indirect benefits to women through improved access to energy resulting in reduced time poverty, improved health outcomes with the use of safer energy sources, and increased access to income earning opportunities. Rural electricity services help non-agricultural enterprises (such as the food processing, handicrafts, food production), and stimulate more opportunities for generating cash and contribute to the rural economy.
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IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION
A. Project Design and Monitoring Framework Impact the Project is Aligned with Regional energy trade expanded (National Development Strategy of the Republic of Tajikistan for the period up to 2030)a
Results Chain Performance Indicators with
Targets and Baselines
Data Sources and Reporting
Risks
Outcome By 2022
Regional energy efficiency among CAPS countries improved.
a. Spillage of surplus water in Tajikistan hydro power plants reduced to 0 (2018 baseline: 5 TWh worth of water)
a.-b. Coordinating Dispatch Center’s annual report
Political landscape in the region changes, and interconnection is no longer a priority.
b. Power trade in CAPS increasedto 6.3TWh per year (2017 baseline: 1.3TWh) c. CO2 emissions for the volume of imported electricity in Uzbekistan from Tajikistan reduced by 1550 tons (2018 baseline based on Uzbekistan grid emission factor: 1885 tons)
c. Implementation consultant’s annual progress report
Outputs
By 2021
1. Tajikistan and Uzbekistan electricity grids synchronized
1. Modern relay protection equipment installed at eight 220kV and two 500kV interconnection points (2018 baseline: 0)
1.-2. Contractor’s completion report and Coordinating Dispatch Center’s annual report.
Technical issues in the Uzbekistan grid surface and prevents interconnection of the Tajikistan system
2. Interconnection between Tajikistan and Uzbekistan expanded.
2.Two new 500kV interconnections established (2018 baseline: 0)
3.Capacity in Tajikistan for stable parallel operation improved
3. At least 20 Barqi Tojik staff trained on stability and protection management operation (2018 baseline: 0)
3. Training completion reports from the turnkey contractor at each training event.
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Key Activities with Milestones 1. Tajikistan and Uzbekistan electricity grids synchronized 1.1 Reach an agreement between counterparties in Uzbekistan and Tajikistan on design and specification
(Q4 2018) 1.2 Issue invitation of bids for the turnkey contract for protection relay system (Q1 2019) 1.3 Award turnkey contract for protection relay systems (Q3 2019) 1.3 Complete installation of of equipment (Q2 2020) 2. Interconnection between Tajikistan and Uzbekistan expanded 2.1 Reach an agreement between counterparties in Uzbekistan and Tajikistan on design and specification
(Q4 2018) 2.2 Issue invitation of bids for the turnkey contract for new connection points (Q1 2019) 2.2 Award turnkey contract for new connection points (Q3 2019) 2.3 Complete installation of equipment (Q3 2020) 3. Capacity in Tajikistan for stable parallel operation improved 3.1 Contractors develop a capacity building program (Q3 2019) 3.2 Hold workshop and training of Barqi Tojik staff (Q4 2019 – Q1 2021) 3.3 Follow-up on operational capacity (Q3 2020 – Q2 2021) Project Management Activities 1. Issue request for proposal for project implementation consultants (Q1 2019) 2. Complete the recruitment of project implementation consultants (Q3 2019)
Inputs ADB: $35 million (Asian Development Fund grant) Government: $5 million
Assumptions for Partner Financing Not Applicable
CAPS = Central Asian Power System, CO2 = carbon dioxide, kV = kilovolt, Q = quarter, TWh = terawatt-hour. a Government of Tajikistan, 2016, National Development Strategy of the Republic of Tajikistan for the period up to 2030,
Dushanbe. Source: Asian Development Bank.
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B. Monitoring 58. Project performance monitoring. Barqi Tojik and project implementation consultant will prepare separate progress reports for the project and submit to ADB on a quarterly basis within 30 days from the end of each quarter. The reports will provide a narrative description of progress made during the period, changes in the implementation schedule, problems or difficulties encountered, performance of the project implementation consultants, and the work to be carried out in the next period. The progress reports will also include a summary financial account for the project, consisting of project expenditures for the year to date and total expenditure to date. Performance will be evaluated on the basis of indicators and targets stipulated in the design and monitoring framework. 59. The following indicators will be updated in the quarterly reports, semi-annual meetings and midterm review which is expected in two years from the date of the grant effectiveness:
(i) Detailed design completed (ii) Replay protection and transmission equipment ordered (iii) Equipment delivered to the sites (iv) Reconstruction of Sudg 500kV substation completed (v) 500 kV HV Line Syrdarya Thermal Power Plant - Uzbekistan (L-503) into Sughd
Substation with creation of new 500 kV HV Lines Syrdarya Thermal Power Plant - Sughd and Sughd – Uzbekistan Substation completed.
(vi) Installation of replay protection system on all CAPS interconnection lines completed. (vii) Training/capacity building of Barqi Tojik staff completed.
60. Compliance monitoring: grant agreement covenants – policy, legal, financial, economic, environmental, social safeguards and other – will be monitored through semi-annual project meeting and the midterm review. 61. Safeguards monitoring will be performed by the consultant and PMU and the results will be included in the quarterly progress reports and semi-annual Environmental Monitoring Reports. Such monitoring should adhere to the requirements in IEE and EMP and LARP. 62. Poverty and Social action plans: Semi-annual progress reports, semi-annual project meeting and midterm review. C. Evaluation 63. Within six months of project physical completion, Barqi Tojik will submit a completion report to ADB.13 D. Reporting 64. Barqi Tojik will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; (iii) semi-annual Environmental Monitoring Report; and (iv) a completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and
13 Project completion report format available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector-
Landscape.rar
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sustainable, project accounts and the executing agency’s audited financial statements, together with the associated auditor's report, should be adequately reviewed. E. Stakeholder Communication Strategy 65. Project information will be disseminated through media at the main milestones including grant agreement signing, plant-design, supply, and install contract awards and project completion. Grievance redress mechanisms will be established at project site gates, by phone, email and through public consultations. Following table outlines the framework of communication strategy was adopted for the project:
Project Documents Means of Communication
Responsible Party
Frequency Audience(s)
Project Information Documents (PID)
ADB’s website ADB Initial PID no later than 30 calendar days of approval of the concept paper, quarterly afterwards.
General public
Design and Monitoring Framework (DMF)
ADB’s website ADB After Board consideration Project-affected people
Initial Environment Examination (IEE)
ADB’s website ADB Posted on XXXXX General public, project-affected people in particular
Land Acquisition and Resettlement Plan (LARP)
ADB’s website ADB Posted on XXXXX General public, project-affected people in particular
Report and Recommendations of the President
ADB’s website ADB Within 2 weeks after Board consideration of the grant
General public
Legal Agreements ADB’s website ADB Within 2 weeks after Board consideration of the grant
General public
Initial Poverty and Social Assessment
ADB’s website ADB Within 2 weeks of completion
General public, project-affected people in particular
Documents produced under Technical Assistance
ADB’s website ADB Within 2 weeks of completion
General public
Project Administration Memorandum
ADB’s website ADB Within 2 weeks after Board consideration of the grant
General public, project-affected people in particular
Major Change in Scope ADB’s website ADB Within 2 weeks of approval of the change
General public
Progress Reports ADB’s website ADB Within 2 weeks of circulation to Board or management approval
General public
Completion Reports ADB’s website ADB Within 2 weeks of circulation to Board for information
General public
Evaluation Reports ADB’s website ADB Routinely disclosed, no specific requirements
General public
X. ANTICORRUPTION POLICY
66. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.14 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA and all project
14 Anticorruption Policy: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf
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contractors, suppliers, consultants, and other service providers. Individuals and/or entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.15 67. To support these efforts, relevant provisions are included in the grant agreement/regulations and the bidding documents for the project. Procurement will follow ADB's Procurement Guidelines, consultant selection will adopt ADB's Guidelines on the Use of Consultants, and disbursement will follow ADB's disbursement policies, guidelines, practices, and procedures.
XI. ACCOUNTABILITY MECHANISM 68. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.16
XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 69. All revision/updates during course of implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.
Date Revised/Updated PAM Section Revision/Updates
15 ADB's Integrity Office web site: http://www.adb.org/integrity/unit.asp 16 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.
