Urban Services Improvement Investment Program - Facility … · 2020. 10. 23. · A. Overview 1 II. IMPLEMENTATION PLANS 2 ... The facility administration manual (FAM) describes the

Urban Services Improvement Investment Program (Board Paper GEO 43405)

Revised Facility Administration Manual Project Number: 43405 MFF Approval No.: M0055 September 2020 (updated)

Multitranche Financing Facility

Georgia: Urban Services Improvement Investment Program

http://www.adb.org/Documents/MC/?id=43405-013-3



CONTENTS

ABBREVIATIONS 5

I. PROJECT DESCRIPTION 1

A. Overview 1

II. IMPLEMENTATION PLANS 2

A. Project Readiness Activities 2 B. Overall Project Implementation Plan 3

III. PROJECT MANAGEMENT ARRANGEMENTS 4

A. Project Implementation Organizations — Roles and Responsibilities 4 B. Key Persons Involved in Implementation 6 C. Project Organization Structure 7 D. Organogram of Investment Program Management Office 8

IV. COSTS AND FINANCING 9

A. Detailed Cost Estimates by Financier 9 B. Allocation and Withdrawal of Tranche 1 2749-GEO Loan Proceeds 16 C. Allocation and Withdrawal of Tranche 2- 2807-GEO Loan Proceeds 16 D. Allocation and Withdrawal of Tranche 3- 3078-GEO Loan Proceeds 16 E. Allocation and Withdrawal of Tranche 4-3238-GEO Loan Proceeds 17 F. Allocation and Withdrawal of Tranche 5-3291-GEO Loan Proceeds 17 G. Allocation and Withdrawal of Tranche 5- 3292-GEO Loan Proceeds 17 H. Allocation and Withdrawal of Tranche 6-3441-GEO Loan Proceeds 18 I. Contract and Disbursement S-curve 19

V. FINANCIAL MANAGEMENT 27

A. Financial Management Assessment 27 B. Accounting 30 C. Auditing and Public Disclosure 30

VI. PROCUREMENT AND CONSULTING SERVICES 31

A. Advance Contracting and Retroactive Financing 31 B. Procurement of Goods, Works and Consulting Services 32 C. Procurement Plan 32

VII. SAFEGUARDS 32

A. Social Safeguards 32 B. Environmental Safeguards 34

VIII. GENDER AND SOCIAL DIMENSIONS 38

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 41

A. Design and Monitoring Framework 41 B. Monitoring 41 C. Evaluation 43 D. Reporting 43 E. Stakeholder Communication Strategy 43

X. ANTICORRUPTION POLICY 44

XI. ACCOUNTABILITY MECHANISM 44

XII. RECORD OF FAM CHANGES 45

APPENDIXES 1. Design and Monitoring Framework 46

2. Procurement Plans 51

Urban Services Improvement Investment Program (Board Paper GEO 43405)

Facility Administration Manual Purpose and Process

The facility administration manual (FAM) describes the essential administrative and management requirements to implement the Urban Services Improvement Investment Program (Investment Program) on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The FAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the FAM. The Ministry of Regional Development and Infrastructure (MRDI) and the United Water Supply Company of Georgia LLC (UWSCG) are wholly responsible for the implementation of ADB financed Investment Program, as agreed jointly between the government and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by MRDI and UWSCG of their obligations and responsibilities for Investment Program implementation in accordance with ADB’s policies and procedures. In the event of any discrepancy or contradiction between the FAM and the Loan and/or Project Agreement, the provisions of the Loan and/or Project Agreement shall prevail. After ADB Board approval of the Investment Program’s report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the FAM.




Abbreviations

ADB = Asian Development Bank ADF = Asian Development Fund AFS = audited financial statements CQS = consultant qualification selection DMF = design and monitoring framework EARF = environmental assessment and review framework EIA = environmental impact assessment EMP = environmental management plan GDP = gross domestic product ICB = international competitive bidding IEE = initial environmental examination IPMO = Investment Program Management Office IPP = indigenous people plan IPPF = indigenous people planning framework LAR = land acquisition and resettlement LIBOR = London interbank offered rate NCB = national competitive bidding NGOs = nongovernment organizations PAI = project administration instructions PAM = project administration manual PIU = project implementation unit QBS = quality based selection QCBS = quality- and cost-based selection RF = resettlement framework RRP = report and recommendation of the President to the Board SBD = standard bidding documents SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy TOR = terms of reference

1

I. PROJECT DESCRIPTION A. Overview 1. The Investment Program will improve the health of residents in the secondary cities of Anaklia, Kutaisi, Marneuli, Mestia, Poti, and Zugdidi. During program implementation, ADB approved the government’s request to add the cities of Abasha, Bolnisi, Chiatura, Gudauri, Jvari, and Ureki. The outcome of the Investment Program is improved water supply and sanitation (WSS) services in these secondary cities.

1. Component 1: Infrastructure Improvement 2. The first component will include infrastructure investments to rehabilitate, improve, and expand water supply and sanitation facilities in 12 secondary cities, and provision of vehicles and equipment for system operation and maintenance for these cities.

2. Component 2: Institutional Effectiveness 3. The second component will provide capacity development for the Ministry of Environmental Protection and Natural Resources (MEPNR), Georgia National Energy and Water Supply Regulatory Commission (GNEWSRC), and the United Water Supply Company of Georgia LLC (UWSCG). This includes providing management contractor support to improve management and technical capabilities of UWSCG.

3. Component 3: Project Implementation Support 4. The third component will provide project implementation support comprising detailed engineering, construction supervision, safeguards compliance, preparing subsequent projects of the Investment Program and a public awareness program on health, hygiene, sanitation, and water conservation. 5. The Ministry of Regional Development and Infrastructure (MRDI) will be the Investment Program's executing agency and the implementing agency for Component 2 of the Investment Program. The UWSCG will be the implementing agency for Component 1 and 3 of the Investment Program.

2

II. IMPLEMENTATION PLANS A. Project Readiness Activities

Activities

L2749 L2807 L3078 L3238 L3291/ 3292 L3441

Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5 Tranche 6

Fact-finding/Consultation Mission

21-26 Nov 2010

9-14 May 2011

9-23 Mar 2013

10-14 Sept 2014

4-10 Feb 2015

16-25 May 2016

Quality Assurance Review Meeting

11-Feb-11 24-Oct-11 11-Nov-13 03-Oct-14 19-Jun-15 02-Aug-16

Loan Negotiations 23-24 Feb 2011

03-Nov-11 18-19 Nov 2013

23-24 Oct 2014

13-14 Jul 2015

19-Sep-16

ADB Board / Management Approval

12-Apr-11 23-Nov-11 05-Dec-13 11-Dec-14 29-Sep-15 04-Oct-16

Loan Signing 10-May-11 01-Dec-11 19-Dec-13 05-Feb-15 26-Oct-15 15-Dec-16

Loan Effectiveness 15-Jun-11 19-Dec-11 17-Mar-14 30-Mar-15 19-Jan-16 02-Mar-17

ADB = Asian Development Bank.

3

B. Overall Project Implementation Plan

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 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 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 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 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Tranche I - 2749

Loan signing and effectiveness

1CONSTRUCTION OF MESTIA WATER SUPPLY

HEADWORKS (MES-01)

2CONSTRUCTION OF WATER SUPPLY INFRASTRUCTURE

IN ANAKLIA, KUTAISI AND POTI TOWNS (REG-01)

3

WATER TREATMENT PLANT, RESERVOIRS &

TRANSMISSION LINES FOR WTP IN MESTIA (SECTION 1)

& WWTP IN ANAKLIA (SECTION 2) (REG-02)/a

4CONSTRUCTION OF WATER SUPPLY AND SANITATION

SYSTEMS IN UREKI (URE-01)/b

5

CONSTRUCTION OF NEW OFFICE BUILDING FOR

UNITED WATER SUPPLY COMPANY OF GEORGIA (OFFICE-

01)

Tranche II - 2807

6MESTIA WATER SUPPLY AND SEWERAGE NETWORKS

CONSTRUCTION (MES-02)

7CONSTRUCTION OF ANAKLIA WATER SUPPLY AND

SEWERAGE NETWORK (ANA-01)

WATER TREATMENT PLANT, RESERVOIRS &

TRANSMISSION LINES FOR WTP IN MESTIA (SECTION 1)

& WWTP IN ANAKLIA (SECTION 2) (REG-02)/a

CONSTRUCTION OF WATER SUPPLY AND SANITATION


Tranche III - 3078



8CONSTRUCTION OF WATER SUPPLY SYSTEM IN KUTAISI -

PHASE II (KUT-01)

9DESIGN, SUPPLY AND INSTALL OF WASTEWATER

TREATMENT PLANT IN UREKI (URE-02)

10CONSTRUCTION OF NEW TRANSMISSION LINE FOR

ABASHA (ABA-01)

11CONSTRUCTION OF WATER SUPPLY AND SANITATION

SYSTEMS IN GUDAURI (GUD-02)/c

12CONSTRUCTION OF WASTEWATER TREATMENT PLANTS

IN GUDAURI (GUD-03)

Tranche 4 - 3238

13CONSTRUCTION OF WATER SUPPLY SYSTEM IN ZUGDIDI

(ZUG-01)

14CONSTRUCTION OF WATER SYSTEM IN JVARI (JVARI-01)

15CIVIL, MECHANICAL AND ELECTRICAL WORKS FOR POTI

STP (POT-02)

CONSTRUCTION OF SEWAGE SYSTEMS IN POTI (POT-01)

(Azeragratikinti)/d

16CONSTRUCTION OF SEWAGE SYSTEMS IN POTI (POT-01)

(rebid)


SYSTEMS IN GUDAURI (GUD-02)/c

Tranche 5 - 3291/3292

17CONSTRUCTION OF SEWAGE SYSTEM IN ZUGDIDI (ZUG-

02)

18CIVIL, MECHANICAL AND ELECTRICAL WORKS FOR STP

CONSTRUCTION IN ZUGDIDI (REG-03a)

CONSTRUCTION OF WATER SUPPLY SYSTEM IN ZUGDIDI

(ZUG-01)/e

19 DESIGN, CONSTRUCTION AND COMMISSIONING OF A

WASTEWATER TREATMENT PLANT IN MESTIA (MES-03)

Tranche 6

20CONSTRUCTION OF WATER SUPPLY SYSTEM IN

CHIATURA (CHI-01)

21

CONSTRUCTION OF WATER SUPPLY AND SEWERAGE

SYSTEMS IN MARNEULI AND SEWERAGE SYSTEM AND

COLLECTOR IN BOLNISI (MAR-01)

22CONSTRUCTION OF WASTEWATER TREATMENT PLANT

IN MARNEULI (MAR-02)

Loan signing and effectiveness

Procurement

Construction (current comletion date)

Construction (expected completion date)

Defects notification

Notes:

a/ REG-02 contract financed by tranches 1 and 2 funds.

b/ URE-01 contract financed by tranches 1, 2 and 3 funds.

c/ GUD-02 contract financed by tranches 3 and 4 funds.

d/ POT-01 contract with Azeraqnantikti terminated.

e/ ZUG-01 contract financed by tranches 3 and 5 funds.

No. of

ContractsImplementation Process of Civil Works Contracts Q1 Q2 Q3 Q4

2011 2017

Q4 Q1 Q3Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2018 20192012

Q1 Q2 Q3 Q4

2013

Q2 Q3

2014 2015 2016

Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2023 2024

Q4Q4 Q1 Q2 Q3 Q4 Q1

2020 2021 2022

Q2 Q3Q2 Q3 Q1Q4 Q1 Q2 Q3 Q4

4

III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations — Roles and Responsibilities

Implementation Organizations Management Roles and Responsibilities

Ministry of Finance

• Facilitate negotiation, signing and execution of the legal agreement, and any amendments thereon during project implementation

• Timely allocate and make available counterpart funds

Steering Committee (State Commission on Water Supply and Energy)

• Oversee progress and provide guidance on the Investment Program implementation

• Meet at least once every 3 months until Investment Program completion

Ministry of Regional Development and Infrastructure (Executing Agency)

• Responsible for overall coordination and implementation of the program

• Provides overall strategic planning, guidance, and management support

• Coordinates with other ministries on project issues under their jurisdiction

• Hold monthly meetings with UWSCG to review progress

• Ensure compliance with Investment Program covenants

• Convene regular meetings in consultation with the SC Chairperson and UWSCG

• Through UWSCG, provide capacity building support to the GNERC on economic and service standard regulation, to the MEPNR on environmental safeguards compliance and monitoring drinking water quality standards

UWSCG (Implementing Agency)

• Create an investment program management office (IPMO) for overseeing the day-to-day project coordination and ensure timely resolution of project related issues

• Responsible for project account maintenance, loan disbursement, safeguards implementation, audit, and reporting to ADB.

• Responsible for procurement of civil works and consultant recruitment

• Administer the civil works and consulting contracts and ensure the quality control of contract execution.

• Through the IPMO, review changes to civil works contract in coordination with the construction supervision consultants

• Prepare and submit withdrawal applications to ADB through the ADB Disbursement Portal.

• Coordinate availability and timely release of government counterpart funds.

• Implement the project land acquisition and resettlement plan,

Implementation Organizations Management Roles and Responsibilities

including environmental safeguards due diligence, in accordance with ADB’s Safeguard Policy Statement (2009) and local requirements. IPMO will submit to ADB required safeguards monitoring reports during project implementation.

• Submit annual audited project and entity financial statements to ADB according to schedule stipulated in the loan agreement.

• Prepare and submit consolidated quarterly monitoring report to ADB.

• Establish the Grievance Redress Systems, and resolve any potential complaints in the field

Asian Development Bank • Guide the executing agency, implementing agency, and IPMO during project implementation

• Review and approve all procurement and consultant recruitment actions, and contract modifications in accordance with the loan agreement

• Conduct regular loan review missions, including midterm and project completion missions

• Monitor compliance with all loan covenants, including safeguards

• Review annual audit reports and any follow-up on audit recommendations

6

B. Key Persons Involved in Implementation

Executing Agency Contact Information

Ministry of Regional Development and Infrastructure

Officer’s Name: Mzia Giorgobiani Position: Deputy Minister Telephone no: +995 322 510591 Office address: Al. Kazbegi Avenue, N12, Tbilisi, Georgia

United Water Supply Company of Georgia LLC

Officer’s Name: Grigol Mandaria Position: Director Telephone no: +995 322 930000 Office address: 76b Vazha-Pshavela Avenue, Tbilisi, Georgia

Asian Development Bank

Urban Development and Water Division Central and West Asia Department

Staff Name: Yong Ye Position: Director Telephone: +63-2-632 5663 Email address:

Mission Leader Staff Name: Heeyoung Hong Position: Principal Urban Development Specialist Telephone: +63-2-632 5940 Email address:

C. Project Organization Structure

Component 1 = Infrastructure Improvement, Component 2 = Institutional Effectiveness, Component 3 = Project Implementation Support, GNEWSRC = Georgia National

Energy and Water Supply Regulatory Commission, MA = Ministry of Agriculture, MEPNR = Ministry of Environmental Protection and Natural Resources, MRDI = Ministry of

Regional Development and Infrastructure, UWSCG = United Water Supply Company of Georgia Limited Liability Company

MRDI

(Executing Agency)

Component 1 and 3

UWSCG

(Implementing Agency)

Component 1 and 3

UWSCG


Detailed

Engineering

Consultants

Detailed

Engineering

Consultants

State Commission

on Water Supply

and Energy

Component 2

MRDI


Component 2

MRDI


Investment Program

Management Office

Investment Program

Management Office

ContractorsContractors

Water Supply and Sanitation

Infrastructure Improvement

Construction

Supervision

Consultants

Construction

Supervision

Consultants

Management

Contractor

Management

Contractor

MEPNR, MA,

and GNEWSRC

MEPNR, MA,

and GNEWSRCUWSCGUWSCG MRDIMRDI

Component 1 = Infrastructure Improvement, Component 2 = Institutional Effectiveness, Component 3 = Project Implementation Support, GNEWSRC = Georgia National

Energy and Water Supply Regulatory Commission, MA = Ministry of Agriculture, MEPNR = Ministry of Environmental Protection and Natural Resources, MRDI = Ministry of

Regional Development and Infrastructure, UWSCG = United Water Supply Company of Georgia Limited Liability Company

MRDI

(Executing Agency)

Component 1 and 3

UWSCG


Component 1 and 3

UWSCG


Detailed

Engineering

Consultants

Detailed

Engineering

Consultants

State Commission

on Water Supply

and Energy

Component 2

MRDI


Component 2

MRDI


Investment Program

Management Office

Investment Program

Management Office

ContractorsContractors

Water Supply and Sanitation

Infrastructure Improvement

Construction

Supervision

Consultants

Construction

Supervision

Consultants

Management

Contractor

Management

Contractor

MEPNR, MA,

and GNEWSRC

MEPNR, MA,

and GNEWSRCUWSCGUWSCG MRDIMRDI

8

D. Organogram of Investment Program Management Office

Investment Program Management Office Structure

IPMO Head

Contracts Management

Engineers (FIDIC/ENAA) (2)

Construction Supervision

Engineer/ Construction Supervision (1)

Program Manager (Deputy)

Safeguards

Environment Specialist (2) Resettlement/ Social Specialist (1)

Procurement

Procurement Specialists (4)

Finance

Finance Manager (1)

Monitoring, Reporting

Gender (1) M&E Specialist (1) Project assistant/ Translator (1)

Design Specialist (WWTP) (1) Geodesist (1)

O&M expert (1)

Advisory Services

Team Leader Financial Expert Modelling and Programming Analyst Economist Water Supply Engineer Wastewater Engineer Lawyer (Regulation) Lawyer (FIDIC)

DIRECTOR, UWSCG

9

IV. COSTS AND FINANCING A. Detailed Cost Estimates by Financier

1. Investment Program

ADB Government

Item Amount % of Cost Category Amount

% of Cost Category TOTAL

A. Investment Costs 1. Civil Works 377.54 84.75 67.94 15.25 445.49 2. Mechanical and Equipment 11.94 84.75 2.15 15.25 14.09 3. Environment and Social Mitigation 0.70 84.75 0.13 15.25 0.83 4. Consultants 16.40 84.75 2.95 15.25 19.35 a. Project management and Audit 25.27 84.75 4.55 15.25 29.81 b. Capacity Development 0.00 0.00 0.00 0.00 0.00 Subtotal (A) 431.86 84.75 77.72 15.25 509.58 B. Recurrent Costs 0.00 0.00 0.00 0.00 0.00 1. IPMO consultants salaries 2.88 83.22 0.58 16.78 3.46 2. System Operation and

Maintenance 3.37 84.75 0.61 15.25 3.98

Subtotal (B) 6.25 84.75 1.12 15.25 7.37 Total Base Cost 438.11 84.75 78.84 15.25 516.95 C. Contingencies 42.24 77.19 12.48 22.81 54.72 D. Financing Charges During

Implementation 20.12 100.00 0.00 0.00 20.12

Total Project Cost (A+B+C+D) 500.47 84.57 91.33 15.43 591.79

10

2. Project 1

Item Total Cost

ADB Government

Amount

% of Cost Category Amount

% of Cost Category

A.

Investment Costs

1 Civil Works 54.45 46.15 84.75 8.30 15.25 2 Equipment and Machinery 5.23 4.43 84.75 0.80 15.25 3 Environment and Social

Mitigation 0.83 0.70 84.75 0.13 15.25

4 Consultants and Management Contractor

19.35 16.40 84.75 2.95 15.25

Subtotal (A) 79.86 67.68 84.75 12.18 15.25 B.

Recurrent Costs

1 IPMO 1.54 1.30 84.75 0.23 15.25

2 System O & M Subtotal (B) 1.54 1.30 84.75 0.23 15.25 Total Base Cost 81.40 68.99 84.75 12.41 15.25 C.

Contingencies

Subtotal (C) 9.21 0.94 10.19 8.27 89.81 D.

Financing Charges During Implementation

1 Interest During Construction 3.53 3.53 100.00 0.00 0.00 2 Commitment Charges Subtotal (D) 3.53 3.53 100.00 0.00 0.00


11

3. Project 2

Item Total Cost

ADB Government

Amount

% of Cost

Category Amount

% of Cost

Category

A. Investment Costs

1 Civil Works 38.30 32.46 84.75 5.84 15.25

2 Equipment and Machinery

3 Environment and Social Mitigation

4 Consultants and Management Contractor

Subtotal (A) 38.30 32.46 84.75 5.84 15.25

B. Recurrent Costs

1 IPMO

2 System O & M

Subtotal (B)

Total Base Cost 38.30 32.46 84.75 5.84 15.25

C. Contingencies

Subtotal (C) 4.33 4.33 100.00 0.00 0.00

D. Financing Charges During Implementation

1 Interest During Construction 2.02 2.02 100.00 0.00 0.00

2 Commitment Charges

Subtotal (D) 2.02 2.02 100.00 0.00 0.00


12

4. Project 3

ADB Government

Item Amount % of Cost Category Amount

% of Cost Category

Total Cost

($ million)

A. Investment Costs 1. Civil Works 74.39 84.75 13.39 15.25 87.78 2. Mechanical and Equipment 1.23 84.75 0.22 15.25 1.45 3. Environment and Social

Mitigation - - - - -

4. Consultants a. Project management 2.37 84.75 0.43 15.25 2.80 b. Capacity Development 0.00 0.00 0.00 0.00 0.00 Subtotal (A) 77.99 84.75 14.03 15.25 92.02 B. Recurrent Costs 1. IPMO consultants salaries 1.00 84.75 0.18 15.25 1.18 2. System Operation and

Maintenance - - - - -


Implementation 4.77 100.00 0.00 0.00 4.77

Total Project Cost (A+B+C+D) 85.23 84.33 15.84 15.67 101.07 % of Total Project Cost 84.33% 15.67% 100.00%

13

5. Project 4

ADB Government Total Cost ($ million) Item Amount


% of Cost Category

A. Investment Costs 1. Civil Works 91.87 84.75 16.54 15.25 108.40 2. Mechanical and Equipment 0.02 84.75 0.00 15.25 0.02 3. Environment and Social


4. Consultants a. Project management and

Audit 9.54 84.75 1.72 15.25 11.26

b. Capacity Development - - - - - Subtotal (A) 101.42 84.75 18.26 15.25 119.68 B. Recurrent Costs 1. IPMO consultants salaries 0.57 84.75 0.10 15.25 0.68 2. System Operation and



Implementation 4.70 100.00 0.00 0.00 4.70


14

6. Project 5

ADB Government

Total Cost ($ million) Item Amount


% of Cost Category

A. Investment Costs 1. Civil Works 61.47 84.75 11.07 15.25 72.54 2. Mechanical and Equipment 3. Environment and Social


4. Consultants a. Project management and

Audit 4.60 84.75 0.83 15.25 5.42

b. Capacity Development - - - - - Subtotal (A) 66.07 84.75 11.89 15.25 77.96 B. Recurrent Costs 1. IPMO consultants salaries 2. System Operation and

Maintenance 3.37 84.75 0.61 15.25 3.98


Implementation 2.10 100.00 0.00 0.00 2.10


15

7. Project 6

ADB Government

Total Cost ($ million) Item Amount


% of Cost Category

A. Investment Costs 1. Civil Works 71.21 84.75 12.81 15.25 84.02 2. Vehicles and Equipment 6.27 84.75 1.13 15.25 7.40 3. Environment and Social


4. Consultants a. Supervision 8.76 84.75 1.58 15.25 10.34 b. Audit 0.00 84.75 0.00 15.25 0.00 Subtotal (A) 86.24 84.75 15.52 15.25 101.76 B. Recurrent Costs

1. IPMO consultants salaries 0.00 0.00 0.06 100.00 0.06 2. System Operation and


Subtotal (B) 0.00 0.00 0.00 0.00 0.00 Total Base Cost 86.24 84.75 15.52 15.25 101.76 C. Contingencies 2.57 50.29 2.54 49.14 5.09

D. Financing Charges During Implementation

3.00 100.00 0.00 0.00 3.00


16

B. Allocation and Withdrawal of Tranche 1 2749-GEO Loan Proceeds

Number Category

Total Amount Allocated for ADB Financing

(SDR)

ADB Financing Percentage and Basis for Withdrawal from the Loan

Account

1 Works 32,959,192.97 84.75% 2 Goods 2,803,936.67 84.75% 3 Consulting Services 13,060,972.36 84.75% 4 Interest 2,518,898.00 100.00% 5 Unallocated 0 Total 51,343,000

Source: United Water Supply Company of Georgia and Asian Development Bank estimates.

C. Allocation and Withdrawal of Tranche 2- 2807-GEO Loan Proceeds

Number Category


(SDR)


Account

1 Works and system Operation and Maintenance Interest

23,610,827.00 1,436,173.00

84.75% 100%

Total 25,047,000


D. Allocation and Withdrawal of Tranche 3- 3078-GEO Loan Proceeds

Number Category


(SDR)


Account

1 Works 57,116,000.00 84.75% 2 Goods 1,072,000.00 84.75% 3 Consulting Services 2,593,000.00 84.75%

4 Interest 3,424,000.00 100.00% 5 Unallocated 0

Total 64,205,000.00 Source: United Water Supply Company of Georgia and Asian Development Bank estimates.

17

E. Allocation and Withdrawal of Tranche 4-3238-GEO Loan Proceeds

Number Category


(USD)


Account

1 Works 93,914,117.31 84.75%

2 Goods 19,817.74 84.75%

3 Consulting Services 9,365,000.00 84.75%

4 Interest and Commitment charge

4,701,064.95 100.00%

5 Unallocated 0

Total 108,000,000.00


F. Allocation and Withdrawal of Tranche 5-3291-GEO Loan Proceeds

Number Category


(USD)


Account

1 Works & Goods 35,835,667.00 84.75% 2 Consulting Services 4,582,933.00 84.75% 3 Interest and Commitment

charge 2,254,000.00 100%

4 Unallocated 327,400.00 66.51% Total 43,000,000.00


G. Allocation and Withdrawal of Tranche 5- 3292-GEO Loan Proceeds

Number Category


(SDR)


Account

1 Works 20,582,000.00 84.75% 2 Interest 974,000.00 100% 3 Unallocated 1,449,000.00 66.51%

Total 23,005,000.00 Source: United Water Supply Company of Georgia and Asian Development Bank estimates.

18

H. Allocation and Withdrawal of Tranche 6-3441-GEO Loan Proceeds

Number Category


(USD)


Account

1 Works, Consulting Services & Goods

91,000,000.00 84.75%

2 Interest & commitment Charge

3,000,000.00 100%

Total 94,000,000.00


19

I. Contract and Disbursement S-curve

1. Project 1

Contract Awards (in USD million) Disbursements (in USD million)

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

2011 0.0000 7.6352 0.0000 3.4395 11.0747 0.0000 0.0000 4.9448 0.8863 5.8311

2012 0.0000 0.0000 0.0607 9.9171 9.9777 0.5975 0.3781 0.7462 0.7705 2.4923

2013 0.0000 0.0000 32.8919 0.0000 32.8919 0.9157 0.2846 4.2785 0.3743 5.8531

2014 0.2670 0.0361 7.6730 2.4438 10.4200 0.5919 1.9059 4.3995 5.9097 12.8070

2015 0.0000 0.3797 0.0000 3.4570 3.8367 2.2787 2.3085 5.5015 5.0683 15.1570

2016 0.0000 0.0000 0.7008 0.0000 0.7008 1.6056 5.1630 1.8165 2.2924 10.8775

2017 0.0000 0.0000 0.0000 0.0000 0.0000 1.0196 2.4820 2.4976 0.5732 6.5723

2018 0.0000 0.0000 0.0000 0.0000 0.0000 0.7296 2.1172 1.4192 1.5895 5.8555

2019 0.0000 0.0000 0.0000 0.0000 0.0000 1.0863 0.5613 0.8588 0.3827 2.8891

2020 1.4618 0.0000 0.0000 0.0000 1.4618 0.7374 0.3327 0.5500 1.5000 3.1200

2021 0.0000 0.0000 0.0000 0.0000 0.0000 1.5625 0.8412 0.0313 0.0000 2.4350

Total Contract Awards 70.363623 Total Disbursements 73.89

0.0000

10.0000

20.0000

30.0000

40.0000

50.0000

60.0000

70.0000

80.0000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Contract Award

Disbursement

20

2. Project 2



2011 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

2012 18.2174 0.0000 0.0000 0.0000 18.2174 1.1848 0.6422 3.0314 2.2230 7.0815

2013 0.0000 0.0000 0.0000 0.0000 0.0000 0.0301 1.2301 2.2466 2.4531 5.9598

2014 0.0000 0.0000 7.2855 7.3067 14.5923 1.4370 1.7647 0.9843 3.0778 7.2639

2015 0.0000 0.0000 0.0000 0.0000 0.0000 0.6345 0.8992 0.5309 0.7168 2.7814

2016 0.0000 0.0000 0.0000 0.0000 0.0000 0.2320 1.4118 2.1548 1.6962 5.4950

2017 0.0000 0.0000 0.0000 0.0000 0.0000 0.2346 0.1355 0.5239 0.6806 1.5745

2018 0.0000 0.0000 0.0000 0.0000 0.0000 0.1461 0.2513 0.4295 0.0000 0.8269

2019 0.0000 0.0000 0.0000 0.0000 0.0000 0.1459 0.1587 0.9560 0.5356 1.7963

2020 1.7073 0.0000 0.0000 0.0000 1.7073 0.0000 0.0000 0.0000 0.1987 0.1987

2021 0.0000 0.0000 0.0000 0.0000 0.0000 1.3881 1.0000 1.1681 0.0000 3.5561


0.0000

5.0000

10.0000

15.0000

20.0000

25.0000

30.0000

35.0000

40.0000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Contract Award

Disbursement

21

3. Project 3



2014 0.0000 0.0000 0.0000 15.6198 15.6198 0.0000 0.0000 0.0000 3.8246 3.8246

2015 0.0000 40.1819 0.0000 0.0590 40.2409 0.6870 7.2837 0.0000 2.6766 10.6473

2016 0.0733 0.0000 0.1910 0.0503 0.3145 1.8968 2.5246 2.3562 3.2246 10.0023

2017 0.5455 0.0111 0.0000 4.2781 4.8347 1.4023 4.3253 2.4217 3.1049 11.2542

2018 1.8075 0.0000 0.0000 0.5077 2.3151 2.1595 4.7312 2.1363 3.4321 12.4590

2019 4.7499 7.3403 0.0000 0.0000 12.0902 2.4454 3.5376 3.2963 3.1827 12.4620

2020 0.0000 0.0000 0.0000 0.0000 0.0000 1.7041 1.5890 1.5000 1.5000 6.2931

2021 0.0000 0.0000 0.0000 9.3440 9.3440 1.6000 1.9000 2.0000 1.6000 7.1000

2022 0.0000 0.0000 0.0000 0.0000 0.0000 1.5000 1.7000 1.9000 1.5000 6.6000

2023 0.0000 0.0000 0.0000 0.0000 0.0000 1.2000 1.7000 1.8000 1.5000 6.2000

2024 0.0000 0.0000 0.0000 0.0000 0.0000 1.3000 1.3000 0.0000 0.0000 2.6000


0.0000

10.0000

20.0000

30.0000

40.0000

50.0000

60.0000

70.0000

80.0000

90.0000

100.0000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Contract Award

Disbursement

22

4. Project 4



2015 0.0000 0.0000 8.0880 35.0263 43.1143 0.0000 0.0248 0.9056 3.4591 4.3895

2016 0.0000 0.0000 0.1488 0.0000 0.1488 3.1734 1.5856 1.7812 3.0735 9.6137

2017 8.4791 0.0208 0.0000 44.1452 52.6451 3.6093 5.2495 2.6393 1.6109 13.1089

2018 0.0000 0.0000 0.0127 0.0214 0.0341 2.5572 5.1445 3.6387 2.4919 13.8323

2019 3.5940 0.0000 0.0000 0.0448 3.6387 3.1888 4.2926 5.3712 5.7791 18.6318

2020 3.7179 0.0000 0.0000 0.0000 3.7179 1.7570 2.1030 3.1000 2.0000 8.9600

2021 0.0000 0.0000 0.0000 0.0000 0.0000 2.2000 2.5000 2.4000 2.3000 9.4000

2022 0.0000 0.0000 0.0000 0.0000 0.0000 2.8000 3.8000 4.2000 2.9000 13.7000

2023 0.0000 0.0000 0.0000 0.0000 0.0000 2.2000 3.4000 3.5000 2.4000 11.5000

2024 0.0000 0.0000 0.0000 0.0000 0.0000 2.4000 2.4638 0.0000 0.0000 4.8638


0.0000

20.0000

40.0000

60.0000

80.0000

100.0000

120.0000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Contract Award

Disbursement

23

5. Project 5

Loan 3291-GEO (OCR)



2016 0.0000 0.0000 0.0000 17.2713 17.2713 0.0143 0.0000 0.0323 0.0000 0.0467

2017 4.0018 0.0000 0.0567 0.7617 4.8202 0.0327 0.1671 0.2055 0.1963 0.6015

2018 0.0000 0.0000 0.0000 0.0000 0.0000 0.2500 0.2543 0.3476 1.4265 2.2784

2019 0.0000 0.0000 3.2451 6.2450 9.4901 1.7877 2.9716 2.7420 7.5890 15.0903

2020 0.0000 0.0000 0.0000 0.8000 0.8000 4.2338 1.5033 0.8000 1.2000 7.7371

2021 0.0000 1.6000 0.0000 4.7600 6.3600 0.3000 2.1000 1.1000 4.6000 8.1000

2022 0.0000 2.0044 0.0000 0.0000 2.0044 0.1200 0.3500 0.8900 3.8000 5.1600

2023 0.0000 0.0000 0.0000 0.0000 0.0000 0.1200 0.2800 1.7000 0.8900 2.9900

2024 0.0000 0.0000 0.5000 0.4960 0.9960

Total Contract Awards 40.7460 Total Disbursements 43.0000 Source: eOperations Version 7 Actualized 2019.

0.0000

5.0000

10.0000

15.0000

20.0000

25.0000

30.0000

35.0000

40.0000

45.0000

50.0000

2016 2017 2018 2019 2020 2021 2022 2023 2024

24

Loan 3292-GEO (COL)

Contract Awards (in USD million) Disbursement (in USD million)


2016 0.0000 0.0000 0.0000 12.8548 12.8548 0.0000 0.0000 0.0000 3.5743 3.5743

2017 0.0000 0.0000 0.0000 12.1797 12.1797 3.2702 0.5933 0.2943 2.0170 6.1747

2018 0.0000 0.0000 0.0000 0.0000 0.0000 0.7207 2.3607 2.3622 1.0224 6.4660

2019 0.0000 0.0000 0.0000 0.0000 0.0000 2.0436 2.0353 1.2838 0.9412 6.3039

2020 0.0000 0.0000 0.0000 0.0000 0.0000 0.7299 0.9331 0.7631 0.8000 3.2260

2021 2.1000 0.0000 0.0000 0.0000 2.1000 0.8000 1.3000 0.3063 0.6500 3.0563

2022 3.3589 0.0000 0.0000 0.0000 3.3589 0.3000 0.7500 0.4700 0.8248 2.3448

2023 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.7000 0.0000 0.0000 0.7000

2024 0.0000 0.0000 0.0000 0.0000 0.0000

Total Contract Awards 30.4934 Total Disbursements 31.8460 Source: eOperations Version 7 Actualized 2019.

0.0000

5.0000

10.0000

15.0000

20.0000

25.0000

30.0000

35.0000

2016 2017 2018 2019 2020 2021 2022 2023 2024

25

6. Project 6

Loan 3441-GEO (OCR)



2017 0.0000 0.0000 17.0918 0.0000 17.0918 0.0000 0.0198 0.0000 3.0370 3.0568

2018 0.0000 0.0000 0.0000 47.4092 47.4092 0.2507 0.5631 0.3792 8.2220 9.4150

2019 0.0000 0.0000 0.0000 8.9447 8.9447 1.2867 2.0359 1.9412 4.8055 10.0693

2020 0.0000 0.0000 0.0000 2.3000 2.3000 3.0518 2.5613 2.1000 3.4000 11.1131

2021 1.8000 7.4500 6.0044 0.0000 15.2544 1.2000 3.8000 4.4000 7.6000 17.0000

2022 0.0000 0.0000 0.0000 0.0000 0.0000 1.2000 3.2000 5.4000 5.7000 15.5000

2023 0.0000 0.0000 0.0000 0.0000 0.0000 2.3000 3.3000 6.7000 7.9000 20.2000

2024 0.0000 0.0000 3.5000 4.1458 7.6458


0.0000

10.0000

20.0000

30.0000

40.0000

50.0000

60.0000

70.0000

80.0000

90.0000

100.0000

2017 2018 2019 2020 2021 2022 2023 2024

26

Fund Flow Diagram

ADB

Ministry of Finance

MRDI (EA)

Contractors Suppliers of Goods

Consultants

Contracts

Invoices IPCs

Withdrawal Applications for Direct Payment and Reimbursement

Direct payment by

ADB

Document flow

Funds flow

IPMO

Certification of IPCs and Invoices

1 2

3

4

5

UWSCG (IA)

Reimbursement

27

V. FINANCIAL MANAGEMENT A. Financial Management Assessment

1. Public Financial Management 6. The reform of the public financial management (PFM) system of Georgia has been a priority for the government in the last six years. The Budget System Law approved in 2004 set in place the principles of comprehensiveness, transparency, and accountability for the budget system as well as rules and procedures for the processes at all stages, which include budget preparation, discussion, approval and execution, consolidation, reporting and auditing of the actual expenditures.1 All extra budgetary funds were closed and all state financial transactions were unified within a Treasury Single Account. This change increased the transparency of the budget process and information on revenue collection and spending was available to any interested group. 7. The Government of Georgia, in 2009, adopted a new Budget Code, which was designed to improve the budget process. With the adoption of the new Budget Code, the budget process became simplified and unified under a common system. This change also positively affected the transparency of the budget process. The basic data and directions (BDD) document became binding with the legislation.2 In 2010 the budget, the expenditure ceilings of the budget agencies for the fiscal year was determined following the BDD document. 8. Another significant change to the budget process is an introduction of program and capital budgeting that is planned for implementation in 2012. Conversion into the program budgeting will clearly identify how much money is necessary for each program and activity, what the expected results of the program are and which performance indicators will be used to measure the output and outcome of the program. In addition to this budget preparation improvement, tax policy reform and other measures to improve the business climate, as well as re-structuring and re-staffing of key government units were also implemented.

2. Financial Management Assessment 9. The financial management assessment (FMA) was carried out for UWSCG, the Investment Program Implementing Agency. The FMA determined the following for UWSCG:

(i) Accounting. Accounting is based on international accounting standards and follows an accrual based system. The Financial Accounting Division is currently preparing a financial management manual to guide staff in applying international accounting practices. Staff will need training on international accounting standards and on international financial reporting standards to improve operational efficiencies.

(ii) Budgeting. Capital planning, tariff review and calculation, and budget preparation

and coordination is carried out by the Financial and Economic Division and based on national budgeting guidelines. The staff will need adequate training on

1 The World Bank and European Commission. 2008. Public Expenditure and Financial Accountability (PEFA). Tbilisi. 2 In 2006, the medium term expenditure framework and basic data and directions (BDD) document was introduced.

The document outlined the main macroeconomic indicators and basic directions and priorities of the Government for the next four fiscal years.

28

preparing business plans that meet commercial operational efficiencies for submissions to the GNERC. Determining tariffs in the short-term to meet revenue requirements and in the long-term to meet long-run marginal costs taking cognizance of socially equitable principles will be a key function the staff will require training on.

(iii) Procurement. Procurement is centrally managed and the staff is currently

conversant with national procurement procedures only. Activities are largely related to procurement of regular maintenance goods and procurement of civil works and goods under donor financed WSS projects is conducted with Municipal Development Fund (MDF) support. Over the program implementation, UWSCG staff capacity has developed to handle international competitive bidding for civil works, equipment and machinery, and design-build projects.

10. UWSCG has an internal audit department to conduct audits. UWSCG has submitted to ADB its audited financial statements for FYs 2016, 2017, 2018 and 2019. 11. The financial management system of the UWSCG was improved through additional support from the Investment Program. Specifically UWSCG’s functions have strengthened and complied with the following:

(i) project financial transactions are recorded in accordance with agreed project components, disbursement categories, and sources of funds;

(ii) regular and reliable audited project financial statements and monitoring reports are timely submitted during project implementation;

(iii) assets inventory and valuation conducted; and (iv) audited entity financial statements are acceptable to ADB.

1. Disbursement Arrangements for ADB Funds

12. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time)3, and detailed arrangements agreed upon between the Government and ADB. Online training for project staff on disbursement policies and procedures is available4. Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control. The IPMO Head will be responsible for (i) collecting and retaining supporting documents, and (ii) preparing and sending withdrawal applications to ADB. 13. Direct payment procedure. This procedure will generally be used for payment to contractor, suppliers of goods, and consultants. For civil works contract, the contractor will submit an invoice along with an interim progress certificate showing the completed civil works for the period. The construction supervision consultants will review the interim progress certificate against the contract and endorse the invoice to IPMO. Upon satisfactory review, IPMO will endorse the interim progress certificate to UWSCG and prepare a withdrawal application for direct payment to the contractor and have this signed by the loan authorized signatories. ADB will make a direct payment to the contractor based on the submitted withdrawal application.

3 The handbook is available electronically from the ADB website (http://www.adb.org/documents/ loandisbursement- handbook) 4 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning.

29

14. Direct payment procedure will generally be used for payment to consultants. Individual consultants and consulting firms. The consulting firms will submit their invoices to IPMO for verification. Once the invoices and inputs are verified, IPMO will prepare a withdrawal application for direct payment and have this signed by the loan authorized signatories. ADB will make direct payment to the account of the consultant based on the withdrawal application.

15. The suppliers of equipment and vehicles will prepare their invoices according to the conditions in the contract and submit these to IPMO for approval. Upon approval, IPMO will prepare a withdrawal application for direct payment to the supplier, for signature of the loan authorized signatories. ADB will make direct payment to the account of the supplier based on the withdrawal application.

16. Reimbursement procedure. This procedure will be used for payment of IPMO consultants’ salaries. UWSCG will use the government counterpart funds for payment of consultants’ salaries and submit a withdrawal application for reimbursement to ADB.

17. Advance fund procedure. This procedure will be used for small payments of eligible project expenditures. An advance account will be established at a commercial bank acceptable to ADB in the name of the project. UWSCG, through IPMO, will administer the advance account including preparation of applications for replenishment and liquidation. Separate advance accounts should be established and maintained by UWSCG for each funding source. The currency of the advance accounts is the US dollar. The advance account is to be used exclusively for ADB’s share of eligible expenditures. UWSCG is accountable and responsible for proper use of advances to the advance account. 18. The total outstanding advance to the advance account should not exceed the estimate of ADB’s share of expenditures to be paid through the advance account for the forthcoming six months. UWSCG may request for initial and additional advances to the advance account based on an Estimate of Expenditure Sheet5 setting out the estimated expenditures to be financed through the account for the forthcoming 6 months. Supporting documents should be submitted to ADB or retained by UWSCG in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time) when liquidating or replenishing the advance account. 19. Statement of expenditure procedure.6 The statement of expenditure (SOE) procedure may be used for reimbursement of eligible expenditures or liquidation of advances to the advance account. The ceiling of the SOE procedure is the equivalent of $50,000 per individual payment. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB's disbursement and review missions, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB. 20. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each

5 Estimate of Expenditure sheet is available in Appendix 8A of ADB’s Loan Disbursement Handbook (2017, as

amended from time to time), 6 SOE forms are available in Appendix 7B and 7D of ADB’s Loan Disbursement Handbook (2017, as amended from

time to time).

https://www.adb.org/documents/loan-disbursement-handbook

30

authorized person. The minimum value per withdrawal application is stipulated in the Loan Disbursement Handbook (2017, as amended from time to time). Individual payments below such amount should be paid by UWSCG and subsequently claimed to ADB through reimbursement, unless otherwise accepted by ADB. The borrower should ensure sufficient category and contract balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements7 system is encouraged for submission of withdrawal applications to ADB. 21. UWSCG, through the IPMO, will be responsible for (i) preparing disbursement projections, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting and retaining supporting documents, and (iv) preparing and sending withdrawal applications to ADB. 22. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the government, together with the authenticated specimen signatures of each authorized person.

2. Disbursement Arrangements for Counterpart Funds 23. UWSCG will be responsible for (i) preparing disbursement projections, and (ii) requesting budgetary allocations for counterpart funds for financing local taxes and duties.

B. Accounting 24. UWSCG will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project following International Public Sector Accounting Standard for cash-based accounting. UWSCG, through the IPMO, will prepare project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices.

C. Auditing and Public Disclosure 25. The UWSCG will cause the detailed project financial statements to be audited in accordance with International Standards on Auditing, 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 UWSCG. 26. 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 loan were used only for the purpose(s) of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements (where applicable).

27. The audited entity financial statements of UWSCG, together with the auditor’s report and management letter, will be submitted in the English language to ADB within 1 month after their approval by the relevant authority.

7 The Client Portal for Disbursements facilitates online submission of withdrawal application to ADB, resulting in faster

disbursement. The forms to be completed by the Borrower are available online at https://www.adb.org/documents/client-portal-disbursements-guide.

https://www.adb.org/documents/client-portal-disbursements-guide

31

28. 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. 29. The government and UWSCG 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.8 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. 30. Public disclosure of the audited project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Access to Information Policy.9 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 opinions, and audited entity financial statements will not be disclosed.

VI. PROCUREMENT AND CONSULTING SERVICES A. Advance Contracting and Retroactive Financing 31. 1. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (April 2013, as amended from time to time) (ADB’s Procurement Guidelines) and ADB’s Guidelines on the Use of Consultants (March 2013, as amended from time to time) (ADB’s Guidelines on the Use of Consultants). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The government, executing and implementing agencies have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the Investment Program. 32. Advance contracting. The government has requested ADB’s approval of advance contracting for (i) the recruitment of consultants (detailed engineering consultants, and supervision consultants); (ii) procurement of civil works; and (iii) procurement of water supply and sewerage system maintenance equipment.

8 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 advance 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 advance 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.

9 Access to Information Policy: https://www.adb.org/documents/access-information-policy

https://www.adb.org/documents/access-information-policy

32

33. Retroactive financing. Retroactive financing will be applied for payment of the maximum amount of eligible expenditures up to the equivalent of 20% of each of the total ADB project loan, incurred for a period not exceeding 12 months before loan signing. B. Procurement of Goods, Works and Consulting Services 34. The Investment Program will follow ADB’s Procurement Guidelines (2013, as amended time to time). An 18-month procurement plan of the six tranches indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C. 35. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method. 36. Bidders eligibility will be determined in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). Accordingly, no bidder or potential bidder shall be declared ineligible for ADB financed contracts for any reason other than those set out in ADB's Procurement Guidelines. For goods or services funded by loans from ADB's Special Fund resources, payments are limited to goods produced in, and services supplied by, developed member countries that have contributed to such resources and all developing member countries. C. Procurement Plan 37. The procurement plans of the six tranches are in Attachments 2.

VII. SAFEGUARDS A. Social Safeguards 38. The following table shows the land acquisition and resettlement-related reports prepared for the Investment Program and projects.

Report Category

ADB Website

Date URL

MFF M0055

Resettlement Framework

Nov-10

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-resettlement-framework-board-approv

Resettlement Plan

Nov-10

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-resettlement-plan-board-approval

L2749 Tranche 1 IR=B; IP=C

LARP for Mestia Water Supply Headworks Project

Jul-11

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-land-acquisition-and-resettlement-p

DDR for poti subproject

Jul-12

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-poti-rpddr










33

Report Category

ADB Website

Date URL

DDR for Kutaisi subproject

Jul-12

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-kutaisi-rpddr

DDR for Anaklia subproejct

Jul-12

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-anaklia-rpddr

Addendum to the LARP for Mestia water supply headworks subproject

Oct-14

https://www.adb.org/projects/documents/geo-urban-services-improvement-investment-program-larp-addendum-rp


LARP for Mestia Water Supply Headworks Project

Jan-14

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t2-mestia-water-supply-headworks-rp

LARP for Mestia subproject

Oct-14

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t2-mestia-water-and-sewerage-rp


LARP for Ureki subproject

Sep-13

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t3-ureki-wsww-rp

LARP for Ureki subproject

Oct-13

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t3-ureki-wsww-oct2013-rp

DDR for Gudauri subproject

Mar-20

https://www.adb.org/projects/documents/geo-43405-025-sddr


LARP for Zugdidi subproject

Oct-16

https://www.adb.org/projects/documents/geo-usiip-t4-zugdidi-oct-2016-rp

DDR for Gudauri subproject


L3291/3292 Tranche 5 C

Compliance Report on Land Acquisition and Resettlement (Mestia subproject)

May-

15 https://www.adb.org/projects/documents/geo-urban-services-improvement-investment-program-t5-mestia-smr


Resettlement Plan for Chiatura Water Supply System subproject

Dec-17

https://www.adb.org/projects/documents/geo-43405-028-rp

39. In order to ensure compliance with ADB Safeguard Policy Statement (2009), MRDI as EA and UWSCG as IA will ensure social safeguards compliance under the Investment Program. MRDI has endorsed the Resettlement Framework (RF) that has been prepared for the Investment Program (see Linked Document 16 of the RRP). The involuntary resettlement process as required under the RF will be followed during implementation and necessary resettlement plans will be prepared. 40. The RF will be reviewed regularly and, if necessary, updated during later tranches of the MFF, if indicated by unanticipated new types of impacts (review of applicability and relevance). The eligibility and entitlement provisions of the RF will not be lowered in subsequent revisions and updates.

























https://www.adb.org/projects/documents/geo-urban-services-improvement-investment-program-t5-mestia-smr





34

B. Environmental Safeguards 41. The following table shows the environment-related reports prepared for the Investment Program and projects

Report Category

ADB Website

Date URL

MFF M0055

Environmental Assessment and Review Framework (Updated)

May-15 https://www.adb.org/projects/documents/urban-

services-improvement-investment-program-may-2015-earf

Environmental Assessment and Review Framework (Updated)

Nov-10 https://www.adb.org/projects/documents/urban-

services-improvement-investment-program-may-2015-earf

Initial Environmental Examination Reports

Nov-10 https://www.adb.org/projects/documents/urban-

services-improvement-investment-program-initial-environmental-examination-r

L2749 Tranche 1 B

IEE for Anaklia subproejct

Jul-12 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-anaklia-iee

IEE for Poti subproject

Jul-12 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-poti-iee

IEE for Kutaisi subproject

Jul-12 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-kutaisi-iee

IEE for Office building subproject

Aug-14 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-tranche-1-new-head-office-uwscg-iee

updated IFF for Poti and Abasha subprojects

Jul-16 https://www.adb.org/projects/documents/geo-

usiip-t1-poti-and-abasha-water-supply-subprojects-jul-2016-iee

L2807 Tranche 2 B

IEE for Mestia subproject

Apr-11 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-tranche-2-improvement-mestia-water-

IEE for Anaklia subproejct

Apr-11 https://www.adb.org/projects/documents/improvement-anaklia-water-supply-and-sewer-system-subproject

IEE for Ureki and Bakuriani subproject

Jul-16 https://www.adb.org/projects/documents/geo-usiip-t2-ureki-and-bakuriani-water-supply-systems-jul-2016-iee

L3078 Tranche 3 B

IEE for Ureki subproject

Oct-13 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t3-ureki-wss-iee

IEE for Ureki subproject

Oct-13 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t3-ureki-wwss-iee


Oct-13 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t3-kutaisi-wss-iee

IEE for Telavi subproject

Oct-17 https://www.adb.org/projects/documents/geo-43405-025-iee-1


Nov-17 https://www.adb.org/projects/documents/geo-43405-025-iee

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-may-2015-earf






https://www.adb.org/projects/documents/urban-services-improvement-investment-program-initial-environmental-examination-r



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-anaklia-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-poti-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-project-1-kutaisi-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-tranche-1-new-head-office-uwscg-iee



https://www.adb.org/projects/documents/geo-usiip-t1-poti-and-abasha-water-supply-subprojects-jul-2016-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-tranche-2-improvement-mestia-water-



https://www.adb.org/projects/documents/improvement-anaklia-water-supply-and-sewer-system-subproject



https://www.adb.org/projects/documents/geo-usiip-t2-ureki-and-bakuriani-water-supply-systems-jul-2016-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t3-ureki-wss-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t3-ureki-wwss-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t3-kutaisi-wss-iee



https://www.adb.org/projects/documents/geo-43405-025-iee-1


https://www.adb.org/projects/documents/geo-43405-025-iee

https://www.adb.org/projects/documents/geo-43405-025-iee

35

Report Category

ADB Website

Date URL

IEE for Gudauri subproject

Dec-17 https://www.adb.org/projects/documents/geo-43405-025-iee-0

Revised IEE for Ureki subproject

Jan-19 https://www.adb.org/projects/documents/geo-43405-025-iee-2

L3238 Tranche 4 B

IEE for Zugdidi subproject

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-tranche-4-zugdidi-water-supply-system-iee

IEE for Poti subproject

https://www.adb.org/projects/documents/urban-services-improvement-investment-program-tranche-4-poti-wastewater-system-iee

IEE for Zugdidi and Jvari subprojects

https://www.adb.org/projects/documents/geo-usiip-t4-zugdidi-and-jvari-water-supply-systems-jul-2016-iee

L3291/3292 Tranche 5 B

IEE for Zugdidi subproject

May-15 https://www.adb.org/projects/documents/geo-urban-services-improvement-investment-program-t5-zugdidi-suproject-draft-iee

IEE for Mestia subproject

May-15 https://www.adb.org/projects/documents/geo-urban-services-improvement-investment-program-t5-mestia-suproject-draft-iee

Updated IEE for Zugdidi subproject

May-15 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t5-zugdidi-iee

Updated IEE for Mestia subproject

May-15 https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t5-mestia-iee

L3441 Tranche 6 B

IEE for Marneuli Water Supply System subproject

Aug-16 https://www.adb.org/projects/documents/geo-

urban-services-improvement-t6-marneuli-ws-aug-2016-iee

IEE for Bolnisi Wastewater System subproject


urban-services-improvement-t6-bolnisi-wastewater-aug-2016-iee

IEE for Chiatura Water Supply System subproject


urban-services-improvement-t6-chiatura-ws-aug-2016-iee

Updated IEE for Marneuli Water Supply System subproject


urban-services-improvement-t6-marneuli-wastewater-aug-2016-iee

42. In order to ensure compliance with ADB Safeguard Policy Statement (2009), MRDI as EA and UWSCG as IA will ensure the implementation of the following requirements and procedures for the Investment Program. MRDI has endorsed the Environmental Assessment and Review Framework (EARF) that has been prepared for the Investment Program. The EARF and the environmental assessment process as required under the EARF will be followed during implementation and necessary IEE and EMP will be prepared.











https://www.adb.org/projects/documents/geo-urban-services-improvement-investment-program-t5-zugdidi-suproject-draft-iee



https://www.adb.org/projects/documents/geo-urban-services-improvement-investment-program-t5-mestia-suproject-draft-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t5-zugdidi-iee



https://www.adb.org/projects/documents/urban-services-improvement-investment-program-t5-mestia-iee



https://www.adb.org/projects/documents/geo-urban-services-improvement-t6-marneuli-ws-aug-2016-iee



https://www.adb.org/projects/documents/geo-urban-services-improvement-t6-bolnisi-wastewater-aug-2016-iee



https://www.adb.org/projects/documents/geo-urban-services-improvement-t6-chiatura-ws-aug-2016-iee



https://www.adb.org/projects/documents/geo-urban-services-improvement-t6-marneuli-wastewater-aug-2016-iee



36

Environmental Management Actions

Implementation Activities

Conditions Required to Complete Actions

Pre-construction commences Activity 1: Project becomes effective

Environmental recording system established in IPMO, UWSCG.

Activity 2: PIU established with ESU. Environment staff appointed to ESU

Budget, facilities and staff for ESU have been provided according to Loan Agreement

Design and implement baseline monitoring for environmental conditions; unless this has been undertaken during the environmental assessment stage

Activity 3: Prepare project baseline environmental matrix

• Environment Specialist (ES) prepares Design Brief for D&S consultant that incorporates EMP Design requirements

• ES checks Design Brief meets EMP requirements

Activity 4: Pre-construction: Design; Incorporation of EMP requirements

Appointment of Design and Supervision consultant with necessary technical capacity to address EMP requirements

• ES extracts construction requirements from EMP and pass to D&S consultant for inclusion in Tender documents

• ES reviews Tender documents and confirm that environmental management provisions are sufficient

Activity 5: Tender documents prepared

Standard environmental conditions have been prepared which are integrated into Tender documents

ESU review environmental conditions of Bid and rank contractors on this ability

Activity 6: Tenders evaluated and Contractor appointed

ES to be a member of the Bid Evaluation Panel

ES reviews SEMP and EMS Activity 7: Contractor prepares Site EMP (SEMP) and EMS if required

• Contractor appoints Environmental Manager.

• After award of contact Contractor has 30 days to prepare SEMP/EMS.

• ADB CWRD Guidance notes on preparing SEMP available

ESU verifies compliance of Contractor with SEMP at site meeting

Activity 8: Contractor inducted to site by ESU

Contractor cannot take possession of construction site until (i) SEMP/EMS has been approved and (ii) induction is completed satisfactorily

ES informs PMU that Contractor is now cleared to start work

Activity 9: Contractor approved to start work

Pre-construction completed

Construction commences

Activity 1: Contractor begins work.

37




• ES, PMU monitors contractor’s SEMP compliance activities.

• ES audits construction activities

• ES evaluates monitoring program

Activity 2: Environmental monitoring undertaken and reports prepared.

• By Contractor: Monthly environmental report sent to Superivision Consultant

• By SC: Quarterly environmental report prepared and sent IPMO ES prepared semi-annual environmental EMRs and sent to ADB

Contractor complies with SEMP requirements for implementing and monitoring work on-site

• ADB CWRD Guidance notes on preparing monitoring reports available

Construction completed

Activity 3: Construction completed and project commissioned

• Project works completed in accordance with the SEMP and all sites satisfactorily rehabilitated and restored.

• ES reviews and sign-off on completed work

• Final environmental monitoring report prepared

• Payments may be withheld if sites not cleared and closed to meet SEMP specifications.

Note: Work on sub-projects for subsequent tranches is likely to begin during implementation of Tranche 1 sub-projects

Sub Projects for subsequent tranches Sub-projects assessed against the selection criteria set out in the environmental assessment and review framework

Activity 1: Potential sub-projects for new tranche identified

• Environmental classification completed. Categorisation forms sent to ADB regional Department and local Environment Authority for confirmation.

• ES prepares TOR for environmental assessment requirements

• Consultant appointed to prepare the necessary environmental assessment documents

Activity 2: Preliminary Design undertaken for sub-projects

Environmental Assessment documents to accompany PFR Documents to be reviewed by ES CWRD.

Activity 3: Project Financing request submitted to ADB Activity 4: Sub-projects in new tranche approved

• Design and implement baseline monitoring for environmental conditions; unless this has been

Activity 5: Prepare project baseline environmental matrix

38




undertaken during the environmental assessment stage

• ES prepare Design Brief for D&S consultant that incorporates EMP Design requirements

• ES check Design Brief meets EMP requirements

Activity 6: Pre-construction: Design; Incorporation of EMP requirements

• ES extracts construction requirements from EMP and pass to D&S consultant for inclusion in Tender documents

• ES reviews Tender documents and confirm that environmental management provisions are sufficient

Activity 7: Tender documents prepared

ES review environmental conditions of Bid and rank contractors on this ability

Activity 8: Tenders evaluated and Contractor appointed

ES reviews SEMP and EMS Activity 9: Contractor prepares Site EMP (SEMP) and EMS if required

Activity 10: Contractor inducted to site by ESU

43. The EARF will be reviewed regularly and, if necessary, updated during later tranches of the MFF, if indicated by unanticipated new types of impacts (review of applicability and relevance). The eligibility and entitlement provisions of the EARF will not be lowered in subsequent revisions and updates.

VIII. GENDER AND SOCIAL DIMENSIONS 44. Gender Development Strategy. To support the primary goal of the Investment Program in ensuring effective and sustainable WSS systems, gender development will be addressed in a twofold approach in this Investment Program. A gender and social development consultant was recruited to assist UWSCG in implementing the GAP and reaching the targets.

(i) One approach is to improve career and employment opportunities in the UWSCG. This will be facilitated by introducing a sex-disaggregated database for human resource management, which will provide information for an annual gender analysis of the staff development, improve management support for gender balanced human resource management and staff development. Additionally, employment opportunities for women will be created in customer care centers. According to UWSCG’s human resource department, around 35% of women are employed in the UWSCG with a large proportion in administrative tasks. In the top management, 4 out of 14 department heads are women (30%). An improved database will be developed to monitor career development for women at UWSCG.

39

(ii) The second approach is to improve the outreach of the UWSCG to communities and in doing this, particularly address women as household managers and water collectors. There is a clear lack of knowledge, information and awareness of water and sanitation related issues such as health, household expenses, customer rights, and environmental issues. For that reason, the Investment Program will develop an information, education and communication (IEC) campaign in all appropriate languages to educate communities on the above issues and inform them about the Investment Program benefits. Before rolling out a country wide IEC, the content and mode of delivery of the IEC will be tested in the urban centers of Mestia and Marneuli.

45. Through a pilot project in Mestia and Marneuli, an apex NGO with an extensive experience of working on gender issues and dissemination of information throughout the country will be involved in planning and carrying out of information campaigns. The Apex NGO will work through local NGOs to address gender issues within the Investment Program. The involvement of NGOs will facilitate better participation of communities, will improve grievance and complaint mechanism and improve awareness of the communities about the Investment Program. Impact assessment of the public awareness program in Mestia and Marneuli will expand UWSCG’s country wide PR campaign. 46. Additional capacity building support for the UWSCG for designing a marketing campaign catering to women’s needs as household managers is envisaged to optimize the utilization of the information gathered in the pilot project. The campaigns will be rolled out in the investment program cities and target local women.

47. The pilot project will be partly financed through Output 3 of RETA-7563: Promoting Gender Inclusive Growth in Central and West Asia, in which the development and implementation of a pilot project in each developing member country including Georgia is planned to showcase effective gender mainstreaming in infrastructure projects. The subprojects may include customer services and client-oriented project development and marketing and other country-specific project proposals that promote gender equality and women's empowerment. The gender specialist, financed through the RETA, will develop the detailed project design for the pilot project and will supervise its timely implementation by the apex NGO.

40

GENDER ACTION PLAN (GAP)10

Objective Actions and Description Target/Indicator and Timeframe Institutional

Responsibility

Component 2: Institutional Effectiveness

1. Knowledge of consumer behavior of male and female headed households gained

– Train staff working on MIS and accounting system on sex-disaggregated data collection

– Establish sex-disaggregated consumer database

– Sex-disaggregated consumer database created for UWSCG (2011)

– UWSCG Annual Report on consumer profile informed by gender analysis of sex-disaggregated consumer data base (2012)

UWSCG

2. Management capacity of UWSCG enhanced and human resource management gender mainstreamed

– Maintain equal employment opportunities for women and men in UWSCG, and facilitate their career development

– Conduct capacity development on gender equality at the workplace

– Inform annual report on human resources of UWSCG with gender analysis

– Women representation in key management staff of UWSCG is ensured (approximately 30% by 2013)

– Atleast 50% of staff in Investment Program town customer service care centers are women (2013)

– Sex-disaggregated data base introduced for human resource management (2011)

– Yearly report on human resource development informed with gender analysis (2012)

– UWSCG staff trained on financial management and accounting (30% number of women)

Component 3: Project Implementation Support

1. Public Relations (PR) campaign of UWSCG is informed by survey on household water management, household needs and knowledge gaps

– Conduct survey on household water management and sanitation practices

– Analyze knowledge gaps of households (especially women as household managers) on water, hygiene, sanitation, environmental impact of sewage, consumer rights, and efficient water use

– Results of survey are analyzed in report (2011) – Public awareness program is informed by survey results

(2011)

UWSCG, Apex NGOs, and local NGOs

2. UWSCG PR campaign is supported by country wide information, education and communication (IEC) campaigns

– Develop IEC material on water, hygiene, sanitation, customer rights and water usage efficiency based on consumer needs and knowledge gaps

– Train staff of customer care centers as hygiene and sanitation advocates

– Roll out public awareness program from Marneuli and Mestia (pilot area) to the 12 Investment Program cities

– Apex NGO contracted and IEC material on water, hygiene and sanitation practices, consumer rights, complaint mechanisms is disseminated in the 12 Investment Program cities (2011- continuous)

– Local women NGOs and female community leaders are involved in IEC material distribution and are trained to conduct public awareness program (2011-continious)

– All staff of customer care centers are trained on water, hygiene, sanitation practices, customer rights and complaint mechanisms (2011- continuous)

– Feedback mechanism on effectiveness of IEC campaign through women determined

3. Complaints redressed – Establish complaint mechanism and database in customer care centers and identify consumer service requirement (targeting the needs of women in specific)

– Annual report on quantity and redress of complaints published (2011-continuous)

10 Applied to all tranches.

41

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Design and Monitoring Framework 48. The design and monitoring framework for the Investment Program is in Attachment 1. B. Monitoring

1. Project Performance Monitoring 49. The quarterly progress report of the IPMO and monthly report of Supervision Consultant will used to monitor the progress of civil works. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly through the semiannual progress reports of the IPMO and after each ADB review mission. These semiannual progress reports will provide information necessary to update ADB’s project performance reporting system.11 50. The IPMO will be responsible for monitoring and reporting on project performance. The basis for performance monitoring will be the project design and monitoring framework, which identifies the performance targets for the impact, outcomes, and outputs of the project. By collecting data from the sources identified in the design and monitoring framework, the IPMO will be able to report on an annual basis the performance of the project. Specific reporting requirements will be set out in the agreement between ADB and MRDI. The IPMO will collect the data, calculate the indicators, analyze the results, and prepare a brief report describing the extent to that the project is generating the intended outputs and outcomes, as well as the overall impact on the project municipalities. The relevance and practicability of data collection for indicators was confirmed with the IPMO and the implementing agencies. Meanwhile, the agreed socio-economic and environmental indicators to be used will be further enhanced to measure project impacts. The IPMO and UWSCG agreed and confirmed that they will (i) refine and integrate the PPMS framework at the start of project implementation; (ii) confirm that targets are achievable; (iii) develop recording, monitoring, and reporting arrangements; and (iv) establish systems and procedures not later than 6 months after project inception.

2. Compliance Monitoring

51. Loan covenants—policy, legal, financial, economic, environmental, and others—will be monitored. The compliance status of loan and project covenants will be reported and assessed through the semiannual progress report. The ADB review missions will verify the status.

3. Safeguards Monitoring

a. Environment 52. Internal monitoring and reporting by construction supervision consultant. During construction, the CSC will be responsible for monitoring the implementation of the Environmental Management Plan (EMP). The environmental specialist at the IPMO will be responsible for overall supervision of the EMP to ensure compliance by the Contractor and proper monitoring by the

11 ADB’s project performance reporting system is available at: http://www.adb.org/Documents/Slideshows/PPMS/

default.asp?p=evaltool.

http://www.adb.org/Documents/Slideshows/PPMS/%20default.asp?p=evaltool

http://www.adb.org/Documents/Slideshows/PPMS/%20default.asp?p=evaltool

42

CSC. The status will be reported through the CSC’s quarterly and monthly reports to UWSCG and ADB. 53. Environmental impact monitoring by the environmental monitoring stations. The IA will contract the local environmental monitoring stations (EMS) to conduct environmental impact monitoring in accordance with the EMP monitoring plan. Monitoring will be conducted during construction and operation until a project completion report is issued.

54. Environmental management plan implementation monitoring and progress reporting. The environmental officer at CSC will review project progress and compliance with the EMP based on consultation with the Contractor’s environmental consultant, field visits, and the review of the environmental impact monitoring. The status of environmental monitoring will be reported to ADB through the semiannual EMP monitoring reports and the project progress reports. The reports will include (i) progress made in the EMP implementation; (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety); (iii) environmental monitoring and compliance; (iv) institutional strengthening and training; (v) public consultation (including GRM); and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. The CSC will help the IPMO prepare the reports and submit the English report to ADB for appraisal and disclosure.

b. Resettlement 55. A detailed plan for the internal monitoring is included in the land acquisition and resettlement framework (LARF). The IPMO will include a summary of internal monitoring in the project progress reports and semiannual social monitoring reports (SSMR) submitted to ADB. The LARP implementation compliance report will be prepared by IPMO and submitted to ADB’s review and clearance in case if LARP is prepared and implemented during the project implementation. IPMO will be assisted by the CSC in safeguards compliance monitoring and reporting, including the preparation of draft compliance report and SSMRs.

c. Social and Gender Action Plans Monitoring12 56. A national gender specialist was engaged as part of the IPMO and will be responsible for GAP implementation, monitoring and reporting. An international Gender Specialist (consultant) will provide technical guidance and advice in the implementation of the GAP. Progress towards the achievement of gender targets in the design and monitoring framework as well as those reflected in the GAP will be monitored and reported quarterly by IPMO and included in the project monitoring reports, with a distinct section that provides concrete sex-disaggregated data demonstrating the reach of the gender activities implemented as well as describing challenges met and actions taken to overcome the challenges. A mid-term review will be carried out and a project completion report will be undertaken at project end.

12 ADB’s Handbook on Social Analysis: A Working Document. http://www.adb.org/Documents/Handbooks/social-

analysis/default.asp; Staff Guide to Consultation and Participation. http://www.adb.org/participation/toolkit-staff-guide.asp; and CSO Sourcebook: A Staff Guide to Cooperation with Civil Society Organizations. http://www.adb.org/Documents/Books/CSO-Staff-Guide/default.asp.

http://www.adb.org/Documents/Handbooks/social-analysis/default.asp

http://www.adb.org/Documents/Handbooks/social-analysis/default.asp

http://www.adb.org/participation/toolkit-staff-guide.asp

http://www.adb.org/participation/toolkit-staff-guide.asp

http://www.adb.org/Documents/Books/CSO-Staff-Guide/default.asp

43

C. Evaluation 57. ADB will field review missions during the duration of project implementation to review the project progress and address issues, as necessary, to ensure that the project is completed as planned. 58. A midterm review mission will be fielded by ADB between the second and third year of implementation of each tranche to assess whether attainment of the project’s immediate objective (design and monitoring framework) is still likely to be achieved and if changes in project may be needed. 59. Within 6 months of physical completion of the project, UWSCG will submit the government’s project completion report to ADB.

D. Reporting 60. UWSCG 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 the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts and UWSCG’s audited financial statement together with the associated auditor's report, should be adequately reviewed. E. Stakeholder Communication Strategy 61. The stakeholder communication strategy for the project aims to increase public awareness on project benefits and improve sustainability of water supply and sewerage system improvements and to promote public feedback during the detailed design, construction, and operation phases of the facilities. 62. The communication strategy will also focus on advantages of introducing private sector to water and sanitation O&M. Such message should be conveyed to all target groups. These groups will not only include customers but also policy makers, the general public to increase their understanding in supplying improved water and wastewater services – including with private sector involvement and the need to use water more rationally. 63. Local and national government officials and the Regulator must understand not only the importance of having modern equipment and systems. An effective management of the necessary changes, processes and practices is also vital, and this can be achieved with the involvement of a private operator. 64. Within UWSCG an internal awareness raising campaign should be conducted to inform the staff at the utility on impending changes, their aims and reasons and how the changes are intended to bring about overall improvements for the benefit of everyone involved.

65. The project includes conduct of public awareness through multimedia campaigns in the communities and households to keep the public well-informed about hygiene, sanitation, customer rights, and water conservation. Individual consultants will be recruited under the project for this activity.

44

66. ADB Public Communications Strategy. Project information will be strategically disseminated through media and regular public consultations at milestones including loan signing, contract awards and project completion and a grievance redress mechanism will be established by UWSCG through IPMO to respond to concerns of affected persons and the public.

X. ANTICORRUPTION POLICY 67. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.13 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project 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.14 68. To support these efforts, relevant provisions are included in the loan agreement and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the project will include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all contractors, suppliers, consultants, and other service providers as they relate to the project.

69. MRDI and UWSCG has been reminded to familiarize themselves with ADB’s Integrity Principles and Guidelines.15 MRDI and UWSCG will access ADB’s Sanction List and check the eligibility of bidders, consultants, their team members, and suppliers16 and has been made aware on where, how and what to report if there is an integrity concern or allegation of integrity violation on ADB-related activity.17

XI. ACCOUNTABILITY MECHANISM 70. 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 the 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, they should approach the Accountability Mechanism.18

13 ADB’s Anticorruption Policy: https://www.adb.org/sites/default/files/institutional-document/32026/anticorruption.pdf 14 ADB's Integrity Office web site: https://www.adb.org/site/integrity/main 15 https://www.adb.org/documents/integrity-principles-and-guidelines 16 https://lnadbg4.adb.org/oga0009p.nsf/alldocs/AANA-AAFBDE?OpenDocument 17 https://www.adb.org/site/integrity/how-to-report-fraud 18 Accountability Mechanism. http://www.adb.org/Accountability-Mechanism/default.asp.

http://www.adb.org/Accountability-Mechanism/default.asp

45

XII. RECORD OF FAM CHANGES 71. All revisions and/or updates during implementation should be retained in this section to provide a chronological history of changes to implemented arrangements recorded in the FAM, including revision to the contract award and disbursement S-curves.

1. 24 February 2011: date of first FAM 2. __ September 2020: Following changes to the FAM were made after approval of MFF extension from 29 March 2021 to 29 March 2024:

(i) Implementation plans (ii) Key persons involved in implementation (iii) IPMO organogram (iv) Costs and financing (v) CAD S-curve (vi) Safeguards

46 Appendix 1

REVISED DESIGN AND MONITORING FRAMEWORK

Impact Improved health of residents in the cities of Georgia (program defined)1

Design Summary Performance Targets and/or

Indicators

Data Sources and/or Reporting

Mechanisms Assumptions

and Risks

Outcome Current Program Improved water supply and sanitation services in the secondary towns of Georgia

By end of Investment Program (2021): (i) Residents’ access to safe

sanitation19 increased from 25% in 2011 to 88% by 2021

(ii) Residents’ access to 24-hr potable water supply increased from 74% in 2011 to 95% by 2021

(100% female headed households in the region will be covered)

Annual sex-disaggregated socioeconomic surveys undertaken as part of the PPMS to determine public satisfaction with the WSS quality

National statistics for water supply quality and effluent discharge by the MOEPA, MA, and UWSCG

Assumptions The government ensures that water company staff and management contractors deliver services efficiently.

Risks Political systems interfere with the enforcement of legislative and regulatory control.

Overall Program Improved water supply and sanitation services in the secondary cities of Georgia

By the end of the program (2024): (i) Percentage of residents with

access to safe sanitation20 increased from 25% in 2011 to 88%

(ii) Percentage of residents with access to a 24-hr potable water supply increased from 74% in 2011 to 95%

(100% of female-headed households in the region covered)

Outputs Component 1: Infrastructure Improvement

Current Program Water supply system efficiency improved through rehabilitation and replacement, and coverage expanded

(i) 60,000 m3 reservoirs, 110 km of water transmission mains, and 350 km distribution networks are rehabilitated, reconstructed, or newly constructed

(ii) 36 MLD capacity water treatment plants constructed

(iii) Nonrevenue water progressively reduced from over 60% to 30% (baseline and target to be established at Investment Program tranche inception)

(iv) Energy savings achieved through efficient pumping systems

Semiannual progress reports prepared by the UWSCG Disbursement and reimbursement records maintained by the UWSCG PPMS reports prepared by the UWSCG

Assumptions Ongoing donor-financed projects are efficiently implemented. Risks Sudden increase in the cost of construction items

19 Includes pour-flush latrines with a reticulated sewerage network. 20 Footnote 1.

Appendix 1 47


Indicators



and Risks

(baseline and target to be established at Investment Program Tranche 1 inception)

(v) Residual chlorine at tail ends of water supply system maintained between 0.2 and 0.4 parts per million

UWSCG annual work plans As-built drawings developed by contractors Project component completion and commissioning certificates provided by the construction supervision consultant

Overall Program Unchanged

By 2024: (i) Reservoirs with a total capacity of

80,513 m3, 348 km of water transmission mains, and 1,150 km of water distribution networks rehabilitated, reconstructed, or newly constructed

(ii) Water treatment plants with a total capacity of 24.6 MLD constructed

(iii) Percentage of nonrevenue water progressively reduced from more than 70% to 30%

(iv) Deleted (v) Unchanged

Current Program Sewerage and sanitation system efficiency improved through rehabilitation and reconstruction, and coverage expanded

(i) Access to sewerage network increased from 83,000 people in 2011 to 311,000 persons in 2019

(ii) Sewer cleaning vehicles procured and made operational by 2011

(iii) Sewage pumps operating on a daily basis and discharging sewage to treatment plants

(iv) Sewage treatment plants rehabilitated or constructed to treat and safely discharge sewage

Overall Program Unchanged By 2024:

(i) Number of residents with access to a sewerage network increased from 83,000 in 2011 to 462,000

(ii) Unchanged (iii) Deleted (iv) Deleted (v) Replaced indicator for (iii): a 775

km sewerage network constructed (vi) Replaced indicator for (iv): 11

WWTPs with a total capacity of 69 MLD rehabilitated or constructed to treat and safely discharge sewage


48 Appendix 1


Indicators



and Risks

Current Program Business plans developed and implemented

UWSCG develops long-term capital improvement plans, asset strengthening plans, resource mobilization and expenditure management plans.

Semiannual progress reports prepared by the UWSCG

Risks Poor enrollment in the WSS management program

Financial management improved, MIS and accounting systems developed

(i) UWSCG operating ratio improved from 1.8 in 2010 to 1 by 2019, indicating improved financial management

(ii) UWSCG revenue collection efficiency improved from 49% in 2010 to 95% by 2019

(iii) Sex-disaggregated consumer database created for UWSCG to develop targeted marketing campaigns for female household heads

UWSCG annual work plans

Geospatial WSS utility management systems operationalized

Calibrated network models developed for water and sewerage networks based on GIS maps

Management capacity of the UWSCG enhanced

(i) WSS management program with Georgian universities operationalized

(ii) 30% of key management staff in UWSCG comprised of women

(iii) UWSCG staff trained on financial management and accounting (30% number of women)

(iv) Sex-disaggregated database for human resource management in place

(v) MEPNR confirms treated sewage meets discharge standards

Sector regulatory capacity of the GNERC, MEPNR, and MA developed

(i) GNEWSRC staff approve tariff and monitor WSS service delivery

(ii) MEPNR staff monitor treatment facility performance and effluent discharge standards

(iii) MA staff monitor drinking water quality standards

Overall Program Unchanged Unchanged Unchanged

Unchanged (i) UWSCG operating ratio improved

from 1.8 in 2010 to 1.0 by 2023, indicating improved financial management

(ii) Unchanged (iii) Sex-disaggregated consumer

database created to enable the UWSCG to develop targeted marketing campaigns for female household heads by 2020

Unchanged (i) Unchanged (ii) Women hold 30% of key UWSCG

management (iii) UWSCG staff (30% women)

trained on financial management

Unchanged Unchanged

Appendix 1 49


Indicators



and Risks Sector regulatory capacity of the GNERC, MEPNR, and MA developed

and accounting (iv) Unchanged (v) Unchanged

(i) GNERC staff approve tariffs and

monitor WSS service delivery. (ii) MOEPA staff monitor treatment

facility performance and effluent discharge standards

(iii) Unchanged

Component 3: Project Implementation Support

Current Program Public awareness program effectively implemented, materials on hygiene and sanitation disseminated, and women developed as hygiene and sanitation advocates.

(i) Each Investment Program service center has a customer care unit staffed by women (at least 30%), which disseminates IEC on water, hygiene, and sanitation practices

(ii) Public awareness program (targeting women as household managers) rolled out in all Investment Program towns

Semiannual progress reports prepared by the UWSCG PPMS reports prepared by the UWSCG UWSCG annual work plans

Assumption Nongovernment organizations actively involved in educating beneficiaries on project benefits.

Overall Program Unchanged (i) Each program service center has a

customer care unit (staffed by at least 30% women) that disseminates information, education, and communication on water, hygiene, and sanitation practices

(ii) Public awareness program targeting women as household managers rolled out in all program cities

Current Program Activities and Milestones: Component 1: Infrastructure Improvement

− Water intake, treatment, and transmission mains constructed (January 2014)

− Equipment for system performance monitoring and improvement procured (July 2011)

− Water supply, sewerage network, sanitation systems, and sewage treatment plants constructed or rehabilitated (January 2019)


− Management contractor appointed (2012)

− Sex-disaggregated consumer database created (January 2012)

− MIS and revenue enhancement plans rolled out (January 2013) Component 3: Investment Project Implementation

− Sex-disaggregated baseline surveys conducted (October 2011)

− Design engineers appointed (October 2010)

− Supervision engineers appointed (July 2011)

− GAP targets confirmed (December 2013) Overall Program

Component 1: Infrastructure Improvement

− Water intake, treatment, and transmission mains constructed (December 2022)

− Equipment for system performance monitoring and improvement procured (October 2021)

− Water supply, sewerage network, sanitation systems, and sewage treatment plants constructed or rehabilitated

(December 2023)

50 Appendix 1


− Management consultant appointed (completed)

− Sex-disaggregated consumer database created (December 2020)

− MIS and revenue enhancement plans rolled out (September 2020)

Component 3: Investment Project Implementation

− Sex-disaggregated baseline surveys conducted (completed)

− Design engineers appointed (completed)

− Supervision engineers appointed (completed)

− GAP targets confirmed (March 2023)

− Investment Program Management Office reorganization (completed)

Inputs ADB: $500 million with the Asian Development Fund and Ordinary Capital Resources Government: $125 million Total: $625 million

ADB = Asian Development Bank, GAP = gender action plan, GIS = geographic information system, GNERC = Georgia National Energy and Water Supply Regulatory Commission, km = kilometer, m3 = cubic meter, MA = Ministry of Agriculture, MEPNR = Ministry of Environmental Protection and Natural Resources, MIS = management information system, MLD = million liters per day, MOEPA = Ministry of Environmental Protection and Natural Resources, PPMS = project performance management system, UWSCG = United Water Supply Company of Georgia, WSS = water supply and sanitation. 1 Editorial word change made to reflect terminology used in the Regional Development Program of Georgia 2018-2021. Source: ADB estimates.

Appendix 2 51

PROCUREMENT PLANS

PROCUREMENT PLAN — TRANCHE 1

Basic Data

Project Name: Urban Services Improvement Investment Program - Tranche 1

Project Number: 43405-023 Approval Number: 2749

Country: Georgia Executing Agency: Ministry of Regional Development and Infrastructure of Georgia

Project Procurement Classification: Implementing Agency: United Water Supply Company of Georgia LLC Project Procurement Risk:

Project Financing Amount: US$ 105,000,000

ADB Financing: US$ 80,000,000

Cofinancing (ADB Administered):

Non-ADB Financing: US$ 25,000,000

Project Closing Date: 29 March 2021

Date of First Procurement Plan: 12 April 2011 Date of this Procurement Plan: 29 January 2020, Version 4

Advance Contracting: No

e-GP: No

A. METHODS, THRESHOLDS, REVIEW AND 18-MONTH PROCUREMENT PLAN

1. Procurement and Consulting Methods and Thresholds

Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works

Method Threshold Comments

International Competitive Bidding for Goods

US$ 500,000 and Above ADB SBD

National Competitive Bidding for Goods Between US$ 100,000 and US$ 499,999 The first NCB is subject to prior review, thereafter post review; ADB SBD

Shopping for Goods Up to US$ 99,999 ADB SBD

International Competitive Bidding for Works

US$ 5,000,000 and Above ADB SBD

National Competitive Bidding for Works Between US$ 100,000 and US$ 999,999 The first NCB is subject to prior review, thereafter post review; ADB SBD

Shopping for Works Up to US$ 99,999 ADB SBD

Direct Contracting for Works No threshold (allowed for any amount) ADB SBD

Consulting Services

Method Comments Consultant's Qualification Selection for Consulting Firm RFP

Fixed Budget Selection for Consulting Firm RFP

Least-Cost Selection for Consulting Firm RFP

Quality- and Cost-Based Selection for Consulting Firm RFP

Quality-Based Selection for Consulting Firm RFP

Single Source Selection for Consulting Firm RFP

Individual Consultant Selection for Individual Consultant ToR

52 Appendix 2

2. Goods and Works Contracts Estimated to Cost $1 Million or More

The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.

Package Number

General Description Estimated Value

Procurement Method

Review (Prior/ Post)

Bidding Procedure

Advertisement Date (quarter/year)

Comments

None

3. Consulting Services Contracts Estimated to Cost $100,000 or More

The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Package Number


Recruitment Method


Advertisement Date

(quarter/year) Type of Proposal

Comments

None

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

The following table lists smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.

Goods and Works

Package Number General

Description Estimated

Value Number of Contracts

Procur ement

Method Review

(Prior/ Post) Bidding

Procedure

Advertisement Date

(quarter/year)

Comments

None

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date

(quarter/year) Type of

Proposal

Comments

None

B. INDICATIVE LIST OF PACKAGES REQUIRED UNDER THE PROJECT The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

Goods and Works

Package Number General Description Estimated Value

(cumulative) Estimated Number of

Contracts Procurement

Method Review

(Prior/Post) Bidding

Procedure Comments

None

Appendix 2 53

Consulting Services

Package Number General Description

Estimated Value

Number of Contracts

Recruitment Method

Review (Prior/ Post) Type of Proposal

Comments

None

C. LIST OF AWARDED AND ON-GOING, AND COMPLETED CONTRACTS

The following tables list the awarded and on-going contracts, and completed contracts.

1. Awarded and Ongoing Contracts

Goods and Works

Package Number

General

Description

Estimated Value Awarded

Contract Value

Procurement

Method Advertisement

Date (quarter/year)

Date of ADB Approval of

Contract Award

Comments

CW/ICB/Off Procurement of 5,000,000.00 4,170,809.10 ICB Q1 / 2015 06-NOV-15 ice-01 civil works for

construction of

UWSCG Office

Building

ICB-URE-0 Procurement of 5,900,000.00 4,979,295.76 ICB Q2 / 2014 17-OCT-14 1 civil works for

construction of

the reservoirs

and water

pumping station

ICB/CW/20 Procurement of 3,000,000.00 3,149,036.86 ICB Q2 / 2011 09-SEP-11 11-MES-01 civil works for

surface water

intake,

transmission

and treatment

ICB/CW/20 Procurement of 35,860,000.00 33,843,057.13 ICB Q3 / 2012 27-MAY-13 13-REG-01 civil works for

surface water

intake,

treatment,

transmission

and distribution

ICB/CW/RE Procurement of 10,052,862.61 10,052,862.61 ICB Q1 / 2013 28-JUL-14 G-02 civil works for

surface water

intake,

transmission

and treatment

54 Appendix 2

Consulting Services

Package

Number

General

Description

Estimated

Value

Awarded

Contract

Value

Recruitment

Method

Advertisement

Date (quarter/year)


Contract Award

Comments Cons_Audit _4

Consultants for auditing (FY 2014)

27,053.41 134,845.47 LCS Q1 / 2015 29-MAY-15

QCBS/01-2 011

Construction Supervision Consultant

10,250,000.00 10,252,146.80 QCBS Q3 / 2011 26-OCT-12

QCBS/201 2-01

Management Contractor

3,270,000.00 3,185,608.70 QCBS Q2 / 2012 17-JUN-13

QBS/02-20 14

Consultants for the baseline survey

250,000.00 190,660.72 QCBS Q3 / 2014 19-MAY-15

IC(01-04, 08-14)

Consultants to support the IPMO

800,000.00 627,374.42 ICS Q2 / 2011 16-JUN-11

Appendix 2 55


Basic Data Project Name: Urban Services Improvement Investment Program - Tranche 2



Project Procurement Classification: Implementing Agency:

United Water Supply Company of Georgia LLC Project Procurement Risk:






Date of First Procurement Plan: 23 November 2011

Date of this Procurement Plan: 13 November 2019, Version 3

Advance Contracting: Yes

e-GP: No


1. Procurement and Consulting Methods and Thresholds Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.


Method Threshold Comments International Competitive Bidding for

Goods US$ 1,000,000 and Above ADB SBD

National Competitive Bidding for Goods Between US$ 100,000 and US$ 999,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Goods Up to US$ 99,999 ADB SBD


US$ 5,000,000 and Above ADB SBD

National Competitive Bidding for Works Between US$ 100,000 and US$ 4,999,999

The first NCB is subject to prior review, thereafter post review.

Shopping for Works Up to US$ 99,999 ADB SBD

Direct Contracting for Works No threshold (allowed for any amount) Added after a minor change in scope was approved on 2 September 2016.

Consulting Services

Method Comments

Consultant's Qualification Selection for Consulting Firm RFP

Fixed Budget Selection for Consulting Firm RFP


Quality- and Cost-Based Selection for Consulting Firm RFP

Quality-Based Selection for Consulting Firm RFP

Single Source Selection for Consulting Firm RFP

Individual Consultant Selection for Individual Consultant ToR



56 Appendix 2

Package Number


Procurement Method


Bidding Procedure


Comments

UWSCG-I CB-G-01- SOFTWA RE-2019

Business Processing Software. Procurement, Installation and Support

1,495,000.00 ICB Prior 1S2E Q4 / 2019 Prequalification of Bidders: N

Domestic Preference Applicable: N

Bidding Document: Others



Package Number


Recruitment Method


Advertisement Date


Comments None



Goods and Works

Package Number

General Description

Estimated Value

Number of Contracts

Procur ement

Method


Bidding Procedure

Advertisement Date

(quarter/year)

Comments None

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date


Proposal

Comments IC-39 Enterprise

Resource planning (ERP) Surveyor

35,000.00 1 ICS Prior Q4 / 2019 Assignment: International

Expertise: IT

IC-40 Enterprise Resource planning (ERP) Architect

70,000.00 1 ICS Prior Q4 / 2019 Assignment: International

Expertise: IT

Appendix 2 57

B. INDICATIVE LIST OF PACKAGES REQUIRED UNDER THE PROJECT

The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

Goods and Works

Package Number

General Description

Estimated Value

(cumulative) Estimated Number

of Contracts Procurement

Method Review


Procedure Comments None

Consulting Services


Estimated Value

Number of Contracts

Recruitment Method


Type of Proposal

Comments None




Goods and Works

Package Number

General

Description


Contract Value

Procurement


Date (quarter/year)


Contract Award

Comments

ICB/CW/RE G-02

Procurement of plant (design and build) for sewage treatment plants

9,106,670.08 9,106,670.08 ICB Q1 / 2013 28-JUL-14 Contract value was deemed confidential according to exception (v) of paragraph 97 of ADB's Public Communication Policy 2011.

ICB-URE-0 1

Procurement of construction of transmission mains

11,920,000.00 8,112,234.02 ICB Q2 / 2014 17-OCT-14 Contract value was deemed confidential according to exception (v) of paragraph 97 of ADB's Public Communication Policy 2011.

Consulting Services

Package General Estimated Awarded Recruitment Advertisement Date of ADB Comments

Number

Description

Value Contract Value

Method Date

(quarter/year)

Approval of Contract Award

None

58 Appendix 2





Project Procurement Risk: Implementing Agency: United Water Supply Company of Georgia LLC

Project Financing Amount: US$ 116,000,000 ADB Financing: US$ 98,000,000 Cofinancing (ADB Administered): Non-ADB Financing: US$ 18,000,000


Date of First Procurement Plan: 18 November 2013

Date of this Procurement Plan: 29 May 2020, Version 11


e-GP: Yes https://tenders.procurement.gov.ge/public/?go=314539&la ng=ge






International Competitive Bidding For Goods

US$ 500,000 and Above Prior, ADB SBD

National Competitive Bidding for Goods Between US$ 100,000 and US$ 499,999 The first NCB is subject to prior review, thereafter post review. Prior and Post, ADB SBD (prior followed by post)

Limited International Bidding for Goods US$ 500,000 and Above Prior, ADB SBD

Shopping for Goods Up to US$ 99,999 Post, ADB SBD

International Competitive Bidding For Works

US$ 1,000,000 and Above Prior, ADB SBD

National Competitive Bidding for Works Between US$ 100,000 and US$ 999,999 The first NCB is subject to prior review, thereafter post review. Prior and Post, ADB SBD (prior followed by post)

Shopping for Works Up to US$ 99,999 Post, ADB SBD

Consulting Services

Method Comments Quality- and Cost-Based Selection for Consulting Firm Prior, RFP

Quality-Based Selection for Consulting Firm Prior, RFP

Consultant's Qualification Selection for Consulting Firm Prior, RFP

Least-Cost Selection for Consulting Firm Prior, RFP

Fixed Budget Selection for Consulting Firm Prior, RFP

Single Source Selection for Consulting Firm Prior, RFP

Individual Consultant Selection for Individual Consultant Prior, ToR

Single Source Selection for Individual Consultant Prior, ToR

Appendix 2 59



Package Number


Procurement Method


Bidding Procedure


Comments

TEL-01 Civil works for water supply system in Telavi [Re-bid 01]



Bidding Document: Large Works

e-GP: No



Package Number


Recruitment Method


Advertisement Date


Comments Cons_4 Capacity development

and training (including IPMO consultants)

150,000.00 CQS Prior Q2 / 2020 BTP Assignment: International

e-GP: No

Cons_Tea Advisory Team (ICs) 500,000.00 ICS Prior Q4 / 2020 Assignment:

m5 International

Expertise: •

Team Leader •

Financial Expert

• Modelling & Programming

(Analyst) Expert

• Economist •

Water Supply

Engineer •

Wastewater

Engineer •

Lawyer – Expert

on Regulation •

Lawyer – Expert

on FIDIC

e-GP: No

60 Appendix 2



Goods and Works

Package Number

General Description

Estimated Value

Number of Contracts

Procur ement

Method


Bidding Procedure

Advertisement Date

(quarter/year)

Comments

UWSCG-NCB-G -01-2019

Procurement of equipment needed for successful implementation of the Educational Program for Water and Sanitation Engineer

200,000.00 1 NCB Prior 1S1E Q2 / 2019 Prequalification of Bidders: N


Bidding Document: Goods

e-GP: Yes

e-GP

Type:

e-Bidding

Comments: Prior (Since this procurement will be first NCB)

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date


Proposal

Comments None



Goods and Works

Package Number

General Description

Estimated Value

(cumulative) Estimated Number

of Contracts Procurement

Method Review



Consulting Services


Estimated Value

Number of Contracts

Recruitment Method


Type of Proposal

Comments None

Appendix 2 61




Goods and Works

Package Number

General

Description


Contract Value

Procurement


Date (quarter/year)


Contract Award

Comments

GUD-03 Civil works for sewage treatment plant in Gudauri (Design-Build)

11,538,534.00 7,331,987.05 ICB Q3 / 2017 29-MAR-19 PCSS0023

e-GP: No

GUD-02 Civil works for sewerage system in Gudauri

8,259,587.00 9,777,699.64 ICB Q3 / 2017 29-NOV-18 PCSS0022.

ICB-KUT-0 1

Procurement of civil works for Kutaisi Water Supply System Rehabilitation

64,950,000.00 38,580,133.89 ICB Q4 / 2014 26-MAR-15 PCSS0004.

ICB-URE-0 1

Procurement of civil works for Ureki Water and Sanitation System Construction

28,270,000.00 22,074,629.50 ICB Q3 / 2014 17-OCT-14 PCSS0001.

ABA-01 Water supply works in Abasha (New Transmission Line)

4,955,752.00 4,161,460.00 ICB Q3 / 2016 24-NOV-17 PCSS 0019.

ICB-URE-0 2

Procurement of works for sewage treatment plant in Ureki

10,620,000.00 7,459,808.23 ICB Q3 / 2014 01-APR-15 PCSS0005.

ICB-G-01-2 014

Procurement of Sewer Cleaner Vehicle (1 Unit)

590,000.00 545,899.69 LIB Q3 / 2016 20-JAN-17 PCSS0016.

G3 Procurement of Tachometer (Geodesic tool to measure the coordinates)

20,000.00 17,300.00 SHOPPING Q1 / 2017 16-MAR-17 PCSS0017.

62 Appendix 2

Consulting Services

Package Number

General

Description


Contract Value

Recruitment


Date (quarter/year)


Contract Award

Comments

Cons_5 Consultants for auditing (FY 2014, FY 2015, FY 2016, FY 2017 and FY 2018)

170,000.00 69,620.00 LCS Q1 / 2015 14-SEP-15 PCSS0006

Cons_2 Asset inventory and GIS mapping

2,279,621.69 1,931,979.00 QCBS Q2 / 2017 02-FEB-18 PCSS 0020.

Cons_1 Educational Program for Water and Sanitation Engineer

881,900.14 515,908.00 QCBS Q2 / 2017 14-NOV-18 PCSS 0021

Cons_3 (IC-24)

IPMO Consultants (Financial Consultant 1)

4,385.96 4,385.96 ICS Q4 / 2016 02-DEC-16 PCSS0013

Cons_3 (IC-25)


4,385.96 4,385.96 ICS Q4 / 2016 02-DEC-16 PCSS0014

Cons_3 (IC-26)


4,385.96 4,385.96 ICS Q4 / 2016 02-DEC-16 PCSS0015

Cons_3 (IC-16)

IPMO Consultants (Financial Manager)

87,174.89 78,841.87 ICS Q1 / 2015 30-MAR-15 PCSS0003

Cons_3 (IC-19)

IPMO Consultants (SCADA Specialist)

4,185.27 4,366.56 ICS Q1 / 2016 19-FEB-16 PCSS0008

Cons_3 (IC-21)

IPMO Consultants (Senior Procurement Specialist)

19,140.79 19,140.79 ICS Q3 / 2016 26-JUL-16 PCSS0009

Cons_3 (IC-23)

IPMO Consultants (Sewerage Specialist)

23,181.82 23,181.82 ICS Q3 / 2016 05-SEP-16 PCSS0011

Cons_3 (IC-22)

IPMO Consultants (Topographer)

20,508.66 20,508.66 ICS Q3 / 2016 05-SEP-16 PCSS0010

Cons_3 (IC-20)

IPMO Consultants (Translator)

12,793.18 12,793.18 ICS Q2 / 2016 27-SEP-16 PCSS0012

Cons_3 IPMO Consultants (current and future, if any)

419,988.64 313,743.00 ICS Q2 / 2017 09-APR-17 various PCSS

Appendix 2 63


Basic Data Project Name: Urban Services Improvement Investment Program-Tranche 4



Project Procurement Risk: Implementing Agency:







Date of First Procurement Plan: 11 December 2014

Date of this Procurement Plan: 5 August 2020, Version 5

Advance Contracting: No

e-GP: No






International Goods

Competitive

Bidding

for

US$ 500,000 and Above As per PAI 3.11

National Competitive Bidding for Goods Between US$ 100,001 and US$ 499,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Goods Up to US$ 100,000 As agreed with UWSCG

International Works

Competitive

Bidding

for

US$ 1,000,000 and Above As agreed with UWSCG

National Competitive Bidding for Works Between US$ 100,001 and US$ 999,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Works Up to US$ 100,000 As agreed with UWSCG

Direct Contracting for Works No threshold (allowed for any amount) A minor change of scope was approved by DG, CWRD on 2 September 2016 adding Direct Contracting.

Consulting Services

Method Comments

Quality- and Cost-Based Selection for Consulting Firm

Quality-Based Selection for Consulting Firm

Consultant's Qualification Selection for Consulting Firm

Least-Cost Selection for Consulting Firm

Fixed Budget Selection for Consulting Firm

Single Source Selection for Consulting Firm

Individual Consultant Selection for Individual Consultant

64 Appendix 2



Package Number


Procurement Method

Review (Prior/

Bidding Procedure

Advertisement Date

Comments

Post) (quarter/year) None



Package Number

General Description Estimated Value Recruitment

Method Review

(Prior/ Post)

Advertisement Date


Comments Cons-3 IPMO (current and

future) 410,000.00 ICS Prior Q1 / 2016 Assignment:

National

Expertise: various

Comments: Includes extension of contract for individual consultants engaged under Projects 1 & 3. Contract value was deemed confidential according to exception (v) of para 97 of ADB's PCP 2011



Goods and Works

Package Number

General Description

Estimated Value

Number of Contracts

Procur ement

Method


Bidding Procedure

Advertisement Date

(quarter/year)

Comments None

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date


Proposal

Comments None

Appendix 2 65



Goods and Works


Estimated Value



Method Review



Consulting Services


Estimated Value

Number of Contracts

Recruitment Method


Comments None




Goods and Works

Package Number

General

Description


Contract Value

Procurement


Date (quarter/year)


Contract Award

Comments

GUD-02 Civil works for the expansion of water supply system in Gudauri

9,439,528.02 4,173,095.98 ICB Q1 / 2017 11-NOV-18 9,777,699.64 (GROSS) (under TR4 only USD 4,173,095.98)

ZUG-01 Procurement of civil works for Zugdidi Water Supply System Construction

53,100,000.00 39,593,106.46 ICB Q2 / 2015 24-JUL-15 Contract value was deemed confidential according to exception (v) of para 97 of ADB's PCP 2011.

POT-01 Procurement of works for Poti Sewerage System Construction

40,560,000.00 37,444,533.14 ICB Q3 / 2015 15-DEC-15 Contract value was deemed confidential according to exception (v) of para 97 of ADB's PCP 2011. The

contract was terminated in October 2016. Awarded Contract Value:$37,444,533. 14. Final Amount after termination is under computation.

POT-02 Procurement of civil, mechanical

20,650,000.00 17,674,708.08 ICB Q1 / 2017 29-NOV-17

66 Appendix 2

Goods and Works

Package Number

General

Description


Contract Value

Procurement


Date (quarter/year)


Contract Award

Comments

and electrical works for Poti STP Construction

POT-01 (re-tender)

Procurement of works for Poti Sewerage System Construction

45,857,337.00 35,309,465.01 ICB Q1 / 2017 28-NOV-17

JVA-01 Procurement of water supply network in Jvari

5,899,705.01 7,095,427.07 DC Q3 / 2016 14-DEC-16 PCSS 0006.

Consulting Services

Package Number

General

Description


Contract Value

Recruitment


Date (quarter/year)


Contract Award

Comments

Cons-2 Auditor 150,000.00 53,100.00 CQS Q1 / 2016 14-SEP-16 Contract value was deemed confidential according to exception (v) of para 97 of ADB's PCP 2011. PCSS

0005.

Cons-1 Construction Supervision Consultant

4,320,000.00 5,342,780.40 QCBS Q4 / 2014 17-JUN-15 Contract value was deemed confidential according to exception (v) of para 97 of ADB's PCP 2011. PCSS

0001 IC-34 IPMO

Consultant –

FIDIC Engineer

23,363.44 23,363.44 ICS Q4 / 2017 13-DEC-18 PCSS 0014

IC-29 IPMO

Consultant –

Gender Consultant

6,140.00 6,140.00 ICS Q3 / 2017 01-FEB-18 PCSS 0011

IC-36 IPMO

Consultant –

Geodesist Topographer

15,872.72 15,872.72 ICS Q4 / 2018 29-NOV-18 PCSS 0016

IC-33 IPMO

Consultant –

Procurement Specialist

8,341.98 8,341.98 ICS Q4 / 2018 22-OCT-18 PCSS 0012

IC-35 IPMO

Consultant –

Procurement Specialist

8,365.56 8,365.56 ICS Q4 / 2018 29-NOV-18 PCSS 0015

IC-32 IPMO Consultant - National Human Resources Manager

4,166.75 4,166.75 ICS Q4 / 2018 11-DEC-18 PCSS 0017

Appendix 2 67



Project Number: 43405-027 Approval Number: 3291/3292


Project Procurement Classification: Category B Implementing Agency:

United Water Supply Company of Georgia LLC Project Procurement Risk: Low






Date of First Procurement Plan: 29 September 2015

Date of this Procurement Plan: 4 December 2019, Version 6


e-GP: No







US$ 1,000,000 and Above

National Competitive Bidding for Goods Between US$ 100,000 and US$ 999,999 Post Review

Shopping for Goods Between US$ 1 and US$ 99,999



National Competitive Bidding for Works Between US$ 100,000 and US$ 4,999,999 The first NCB is subject to prior review, thereafter post review.

Shopping for Works Between US$ 1 and US$ 99,999

Consulting Services

Method Comments Consultant's Qualification Selection for Consulting Firm



Quality- and Cost-Based Selection for Consulting Firm RFP (Quality: Cost ratio 90:10)




68 Appendix 2

Package Number


Procurement Method


Bidding Procedure


Comments

UWSCG-I CB-Headw orkDevice s-G-02-20 19

Procurement of 12 different devices for accurate calculation of water volume obtained at headwork's specifications






Package Number


Method Review

(Prior/ Post)

Advertisement Date


Comments None



Goods and Works




Procur ement

Method Review (Prior/

Post) Bidding

Procedure

Advertisement Date

(quarter/year)

Comments UWSCG-NCB-Di agnostic Device-G-04-201 9

Devices required for the operation of the Diagnostic Service

447,000.00 1 NCB Post 1S1E Q4 / 2019 Prequalification of Bidders: N



UWSCG-NCB-L aboratory-G-02-2 019

Mobile Laboratory Equipment for water quality control




UWSCG-NCB-P T-G-01-2019

Reservoir Power Transformer for


water supply headwork (Kutaisi)


Appendix 2 69

Goods and Works




Procur ement

Method Review (Prior/

Post) Bidding

Procedure

Advertisement Date

(quarter/year)

Comments


UWSCG-NCB-P umps-G-03-2019

Pumps and related equipment for operational maintenance




Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date


Proposal

Comments None



Goods and Works


Estimated Value



Method Review



Consulting Services


Estimated Value

Number of Contracts

Recruitment Method


Comments None




70 Appendix 2

Goods and Works

Package Number

General Description


Contract Value

Procurement Method



Contract Award

Comments

CW-03/RE G-03b (MES)

Procurement of civil, mechanical and electrical works for STP Construction in Mestia (Design and Build)

9,432,803.00 7,289,482.45 ICB Q1 / 2019 26-SEP-19 PCSS0006

CW-01 Procurement of works for Sewerage System Construction in Zugdidi

31,370,000.00 35,547,048.79 ICB Q1 / 2016 26-SEP-16 PCSS0001.

CW-02/RE G-03a (ZUG)

Procurement of civil, mechanical and electrical works for STP Construction in Zugdidi (Design and Build)

35,267,256.00 17,841,755.06 ICB Q2 / 2017 18-DEC-17 PCSS0004 & 0001

Consulting Services

Package Number

General

Description


Contract Value

Recruitment


Date (quarter/year)


Contract Award

Comments

CONS-02 Auditor for auditing APFS for FY2015, FY2016, FY2017, FY2018 and FY2019

230,000.00 62,341.00 LCS Q1 / 2017 31-JUL-17 PCSS0003 - L3291

CONS-01 Construction Supervision Consultant

2,870,000.00 4,398,107.56 QCBS Q1 / 2016 01-FEB-17 PCSS0002.

Appendix 2 71


Basic Data Project Name: Urban Services Improvement Investment Program -Tranche 6



Project Procurement Risk: Low Implementing Agency:







Date of First Procurement Plan: 4 October 2016 Date of this Procurement Plan: 30 March 2020, Version 9


e-GP: No








National Competitive Bidding for Goods Between US$ 100,000 and US$ 999,999 The first NCB is subject to prior review, thereafter post review

Shopping for Goods Between US$ 50,000 and US$ 99,000

Direct Contracting for Goods Between US$ 1 and US$ 50,000 Prior approval required for use of direct contracting, on a case to case basis.



National Competitive Bidding for Works Between US$ 100,000 and US$ 4,999,999 The first NCB is subject to prior review, thereafter post review

Consulting Services

Method Comments

Consultant's Qualification Selection for Consulting Firm



Quality- and Cost-Based Selection for Consulting Firm RFP (Quality: Cost ratio 90:10)




72 Appendix 2

Package Number


Procurement Method


Bidding Procedure


Comments

UWSCG-I CB-G-03-T rucks-201

Procurement of special machinery


9 Domestic Preference Applicable: N


UWSCG-I CB-G-04- Vehicles-2 019

Four-wheel drive pick ups (50 units)






Package Number


Method


Advertisement Date


Proposal

Comments

CONS-02 Auditor for Auditing APFS for FY2016, FY2017, FY2018, and FY2019

590,000.00 LCS Prior Q1 / 2019 BTP Assignment: National Advance Contracting: Y Comments: National Assignment.

UWSCG/ USIIP/QC BS/01-20 19

Feasibility Study and Redesign of Bakuriani, Chiatura and Mtebia

4,500,000.00 QCBS Prior Q3 / 2019 FTP Assignment: International Quality-Cost Ratio: 90:10

Comments: International

Appendix 2 73



Goods and Works

Package Number

General Description

Estimated Value

Number of Contracts

Procur ement

Method


Bidding Procedure

Advertisement Date

(quarter/year)

Comments UWSCG-Direct- GIS-G01-2019

AIR GIS software license and related equipment

49,500.00 1 DC Prior Q4 / 2019

Comments: Procurement by direct contracting

UWSCG-NCB-Bi lling-G-05-2019

Equipment for Billing Dept




UWSCG-NCB-L ow-loaders-G-04 -2019

Procurement of low loaders




UWSCG-NVB-S ewerageCleaner- G-03-2019

Vaccum cleaner trucks




UWSCG-Shoppi ng-GIS-Compute r-G-01-2019

A3 Printer, Laptops and desktop computer

22,500.00 1 SHOPP ING

Post Q4 / 2019

74 Appendix 2

Goods and Works

Package Number

General Description

Estimated Value

Number of Contracts

Procur ement

Method


Bidding Procedure

Advertisement Date

(quarter/year)

Comments

for AIR GIS software

UWSCG-Shoppi ng-GIS-Equipme nt-G-03-2019

GPS equipment for field works

10,000.00 1 SHOPP ING

Post Q4 / 2019

UWSCG-Shoppi ng-Scooter-G-02 -2019

Motor scooters (50)

89,000.00 1 SHOPP ING

Post Q4 / 2019

Consulting Services

Package Number

General Description

Estimated Value

Number of Contracts

Recruitment Method


Advertisement Date


Proposal

Comments None



Goods and Works


Estimated Value



Method Review



Consulting Services


Estimated Value

Number of Contracts

Recruitment Method


Comments None

Appendix 2 75




Goods and Works

Package Number

General

Description


Contract Value

Procurement


Date (quarter/year)


Contract Award

Comments

UWSCG-IC B-MAR-02- 2019

Procurement of civil, mechanical and electrical works for STP Construction in

11,210,000.00 10,650,210.22 ICB Q1 / 2019 28-OCT-19 PCSS 0004. JV of Toshiba Water Solutions Pvt. Ltd. and IN-SI LLC

Marneuli (Design and Build)

CW-01 (MAR-01)

Procurement of works for Construction of Water Supply and Sewerage Systems in Marneuli; Sewerage Network and Interceptor in Bolnis

65,100,000.00 55,940,496.00 ICB Q2 / 2018 23-NOV-18 PCSS 0003. Akelik Group OJSC

CW-03 (CHI-01)

Procurement of works for Construction of Water Supply System in Chiatura

17,000,000.00 16,109,086.00 ICB Q1 / 2017 24-JUL-17 PCSS 0001. Akkord Industry Construction Investment Corp.

Consulting Services

Package Number

General

Description


Contract Value

Recruitment


Date (quarter/year)


Contract Award

Comments

CONS-01 Construction Supervision Consultant

4,720,000.00 4,830,684.00 QCBS Q1 / 2017 07-SEP-17 PCSS 0002. Hill International NV & Temelsu Intl Eng & Policy Mgt

76 Appendix 2

National Competitive Bidding Annex

1. General 1. The procedures to be followed for national competitive bidding shall be those set forth in the Law of Georgia on State Procurement January 1, 2006 with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB's Procurement Guidelines.

2. Eligibility

2. The eligibility of bidders shall be as defined under section I of ADB's Procurement Guidelines, published by ADB; accordingly, no bidder or potential bidder should be declared ineligible to ADB-financed contracts for other reasons than the ones provided by section I of ADB’s Guidelines. Bidders must be nationals of member countries of ADB, and offered goods and services must be produced in and supplied from member countries of ADB.

3. Prequalification

3. Normally, post-qualification shall be used unless explicitly provided for in the loan agreement/procurement plan. Irrespective of whether post qualification or prequalification is used, eligible bidders (both national and foreign) shall be allowed to participate.

4. Registration and Licensing

(i) Bidding shall not be restricted to pre-registered/licensed firms.

(ii) Where registration or licensing is required, bidders (i) shall be allowed a reasonable time to complete the registration or licensing process; and (ii) shall not be denied registration/licensing for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

(iii) Foreign bidders shall not be precluded from bidding. If a registration or licensing

process is required, a foreign bidder declared the lowest evaluated bidder shall be given a reasonable opportunity to register or to obtain a license without unreasonable cost and additional requirements.

5. Bidding Period

4. The minimum bidding period is twenty-eight (28) days prior to the deadline for the submission of bids.

6. Bidding Documents

5. Procuring entities should use standard bidding documents for the procurement of goods, works and services acceptable to ADB. 6. The term “services” above are applicable to the following: (a) related services (for supply of goods and works) such as transportation, insurance, installation, commissioning, training and initial maintenance, and (b) other services such as drilling, mapping, and similar operations.

Appendix 2 77

7. Preferences

7. No domestic preference shall be given for domestic bidders and for domestically manufactured goods.

8. Advertising

8. Invitations to bid shall be advertised in at least one widely circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of twenty-eight (28) days for the preparation and submission of bids. 9. Bidding of NCB contracts estimated at US$500,000 equivalent or more for goods and related services or US$1,000,000 equivalent or more for civil works shall be advertised on ADB’s website via the posting of the Procurement Plan.

9. Bid Security

10. Where required, bid security shall be in the form of a bank guarantee from a reputable bank.

10. Bid Opening and Bid Evaluation

(i) Bids shall be opened in public. (ii) Evaluation of bids shall be made in strict adherence to the criteria declared in the

bidding documents and contracts shall be awarded to the lowest evaluated bidder who meets the qualifying criteria stated in the bid documents.

(iii) Bidders shall not be eliminated from detailed evaluation on the basis of minor, non-

substantial deviations.

(iv) No bidder shall be rejected on the basis of a comparison with the employer's estimate and budget ceiling without ADB’s prior concurrence.

(v) A contract shall be awarded to the technically responsive bid that offers the lowest

evaluated price and no negotiations shall be permitted.

(vi) Price verification shall not be applied. 11. Rejection of All Bids and Rebidding

11. Bids shall not be rejected and new bids solicited without ADB’s prior concurrence.

12. Participation by Government-owned enterprises 12. Government-owned enterprises in Georgia shall be eligible to participate as bidders only if they can establish that they are legally and financially autonomous, operate under commercial law and are not a dependent agency of the contracting authority. Furthermore, they will be subject to the same bid and performance security requirements as other bidders.

78 Appendix 2

13. Right to Inspect/Audit 13. A provision shall be included in all NCB works and goods contracts financed by ADB requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB.

14. Fraud and corruption

(i) The Borrower shall reject a proposal for award if it determines that the bidder

recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for the contract in question.

(ii) ADB will declare a firm or individual ineligible, either indefinitely or for a stated

period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for, or in executing, an ADB-financed contract.

14. For purposes of the provisions in (a) and (b) above, the definitions of the terms “fraudulent practice”, “corrupt practice”, “collusive practice”, and “coercive practice” are the definitions given in ADB’s Procurement Guidelines.

15. Conflict of Interest 15. ADB’s rule in respect of “Conflict of Interest” as stipulated in ADB’s Standard Bidding Documents for Procurement of Goods, Civil Works, and Plant-Design, Supply and Install shall be applicable.

16. Disclosure of Decision on Contract Awards

16. At the same time that notification on award of contract is given to the successful bidder, the results of bid evaluation shall be published in a local newspaper, or a well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each Bidder who submitted a Bid, (ii) bid prices as read out at bid opening; (iii) name of bidders whose bids were rejected and the reasons for their rejection, and (iv) name of the winning Bidder, and the price it offered, as well as duration and summary scope of the contract awarded. The executing agency/implementing agency/contracting authority shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected.