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ASIAN DEVELOPMENT BANK
PROJECT ADMINISTRATION MEMORANDUM (FIRST DRAFT)
For the
WESTERN BASINS WATER RESOURCES MANAGEMENT PROJECT
For
ISLAMIC REPUBLIC OF AFGHANISTAN
LOAN 2227-AFG(SF)/GRANT 0033-AFG
21 June 2007
Preface
This Project Administration Memorandum (PAM) was prepared by the Asian Development Bank (ADB) to assist the Government in implementing the Western Basins Water Resources Management Project (the Project), for which the ADB’s Board of Directors approved a Loan and Grant of SDR42,446,000 and US$14,500,000, respectively, on 21 December 2005. This PAM is based on: (i) the Report and Recommendation of the President to the Board of Directors on the Proposed Loan and Asian Development Bank Fund Grant to the Islamic Republic of Afghanistan for the Project dated November 2005; (ii) the Financing Agreement between the Government and ADB dated 9 March 2006; and (iii) the ADB’s relevant guidelines. In case the provisions in this PAM differ from those of the above mentioned documents, the provisions of the Financing Agreement, relevant ADB guidelines, and the RRP will prevail over the PAM in the respective order. The PAM is an active document, and should be progressively revised and/or updated as and when necessary (eg. following any changes in project scope, costs, or implementation arrangement). It is, however, suggested that changes be added/introduced to the PAM as an addendum, rather than replacing original provisions. This will help reconcile historical records and in preparing future project completion reports.
3
CURRENCY EQUIVALENTS (as of 3 March 2006)
Currency Unit – Afghanistan Afghani (AF)
AF1.00 = $ 0.0199
$1.00 = AF50.24
ABBREVIATIONS
ADB – Asian Development Bank ADF – Asian Development Fund BWC – basin water committee EIRR – economic internal rate of return EMP – environmental management plan ICB – international competitive bidding IEE – initial environmental examination ISA – initial social assessment IWRM – integrated water resource management LCB – local competitive bidding M&E – monitoring and evaluation MAAHF – Ministry of Agriculture, Animal Husbandry, and Food MEW – Ministry of Energy and Water MMI – Ministry of Mines and Industry MOF – Ministry of Finance MRRD – Ministry of Rural Reconstruction and Development NEPA – National Environmental Protection Agency NGO – nongovernment organization O&M – operation and maintenance OFWM – on-farm water management PIC – project implementation committee PMU – project management unit PSC – project steering committee R&U – rehabilitation and upgrading RBA – river basin authority TA – technical assistance
NOTES
(i) The fiscal year of the Government ends on 31 March. (ii) In this report, "$" refers to US dollars.
CONTENTS Page Loan and Grant Processing History
ii
Project Design and Monitoring Framework
iii
I.
Project Description
1
A. Project Area and Location 1 B. Objectives and Scope 1 C. Project Components 1 D. Special Features 2 II.
Cost Estimates and Financing Plan
3
A. Detailed Cost Estimates and Financing Plan 3 B. Use and Allocation of Loan and Grant Proceeds 4 III.
Implementation Arrangements
6
A. Executing and Implementing Agencies 6 B. Project Management Organization 5 IV.
Implementation Schedule
8
V.
Cost Estimates and Financing Plan During Implementation
8
VI.
Consultant Recruitment
9
VII.
Procurement
11
VIII.
Disbursement Procedures
14
IX.
Project Monitoring and Evaluation
16
X.
Reporting Requirements
17
XI.
Auditing Requirements
17
XII.
Major Loan and Grant Covenants
17
XIII.
Key Persons Involved in the Project
17
XIV.
Anticorruption
18
XV.
Other Matters
18
Appendixes
19
ii
LOAN PROCESSING HISTORY
Milestone Event
Dates
a.
Approval of PPTA (TA No. 4420-AFG)
:
26 October 2004
b.
Feasibility study
:
July 2005
c.
Fact-finding
:
11 July to 2 August 2005
d.
Management review meeting
:
15 September 2005
e.
Pre-Appraisal mission (upgraded to Appraisal Mission on 14 November 2005)
:
29 September to 18 October 2005
f.
Staff review committee
:
16 November 2005
g.
Loan negotiations
:
22 November 2005
h.
Board circulation
:
29 November 2005
i.
Board consideration and approval
:
21 December 2005
j.
Financing agreement signing
:
9 March 2006
k.
Cofinancing arrangement finalized and agreements signed, if any
:
25 August 2006 (CIDA Grant 0052)
l.
Loan effectiveness, including conditions (include available dates)
:
31 May 2006
iii
PROJECT DESIGN AND MONITORING FRAMEWORK1
Design Summary
Performance Targets/Indicators
Data Sources/Reporting
Mechanisms
Assumptions and Risks
Impact Improve rural livelihoods in the Hari Rud and Murghab River Basin (project area).
1. Income for rural residents in subproject areas improved by 60% 4 years after subproject completion monitored annually 2. Poverty levels subproject areas reduced by 25% 5 years after subproject completion monitored annually 3. Food security in project districts improved 2 years after subproject completion monitored annually
1. Government statistics/ reporting 2. World Food Program and other development partner statistics/reporting 3. Project monitoring and evaluation (M&E) activities by project management unit (PMU) 4. Mirabsa and communities through participatory M&E
Assumptions Strengthened integrated water resource management (IWRM), improved irrigation service delivery, and enhanced agricultural practices to increase the productivity of irrigated agriculture will improve rural livelihoods. Risks 1. Increases in crop production and income may not be measurable within the project time frame. 2. Other socioeconomic, cultural, or political factors may prevent and divert intended project impacts.
Outcome 1. Strengthened institutional framework and capacity for IWRM and development 2. Improved performance of irrigation system in the Hari Rud and Murghab River Basin 3. Improved effectiveness of mirabs and communities to manage and provide operation and maintenance (O&M) for their irrigation systems 4. Improved water management by farmers at the farm level
5. Improved yields of irrigated wheat and fodder (ADF grant)
1. Planned surface water allocation and basin management processes institutionalized by end of Project; sustainable development of irrigated agriculture with groundwater starting by end of Project in the Hari Rud River Basin 2. Increased equity and efficiency of water distribution (especially at tail end), expanded spring irrigation area by 25%, and summer or perennial irrigation area to be at least 30% of irrigable area in subprojects 3. Self-sustaining mirab/ community irrigation organization maintaining and upgrading irrigation systems in all subprojects by end of Project; increase resource flows to mirabs by 33% by end of Project (Asian Development Fund [ADF] grant) 4. Field application efficiency of water at farm level increases by 15% in areas that received on-farm water management (OFWM) training by end of Project (ADF grant) 5. Consistent average wheat yields of at least 2.8 tons/hectare (ha) in subprojects
1. Government statistics/ reporting 2. World Food Program and other development partner statistics/reporting 3. Project M&E activities by the PMU 4. Mirabs and communities through participatory M&E 5. Diplomas and other evidence of successful capacity development activities 6. Asian Development Bank (ADB) review missions 7. Reporting by Afghanistan Resident Mission
Assumptions 1. Government will make adequate and appropriate staff available for training and participation. 2. Government is committed to pursue project objectives over the life of the Project. 3. Mirabs and local communities interested and cooperative in project interventions. Risk Chronic drought, disease, or other technical concerns thwart project objectives.
1 As agreed during appraisal.
iv
Design Summary
Performance Targets/Indicators
Data Sources/Reporting
Mechanisms
Assumptions and Risks
6. Increased cropping intensity and yields for second season horticulture 7. Increased income-generating opportunities for rural women and landless 8. Improved capacity for IWRM, irrigation, and water resources management and development, agricultural productivity, and project management
within 2 years after rehabilitation and upgrading (R&U) 6. Cropping intensities increase by average of 300% and yields by 20% for summer season horticulture crops (ADF grant) 7. Over 2,000 women and the landless have improved livelihoods from income generating activities (ADF grant) 8. At least 20 professional and technical people trained for various river basin management tasks, 30 professional and technical people trained for various irrigation engineering tasks, at least 12 professional and technical people trained for agriculture and livelihood services, at least 400 mirabs trained for water management, and at least 3,500 farmers to receive training for improved water management and agricultural practices
Outputs Component 1 1. Functioning and sustainable management institution or a river basin authority (RBA) for the Hari Rud River 2. Defined and agreed entitlements for water allocation for the Hari Rud River Basin 3. A surface and groundwater model and other decision support tools for the Hari Rud River Basin 4. A groundwater regulatory/management framework
Component 2 5. A participatory irrigation R&U process that involves mirabs and all the community
1. An RBA consistent with Government policy in place by end of the Project 2. Entitlement registry in place and basin irrigation scheduling procedures in place by project end 3. Groundwater permitting and management information system in place by project end 4. Groundwater policy drafted and enforcement mechanisms in place by the end of Project 5. Community 95% satisfied with R&U activities, community contributions to R&U resources in all subprojects, and consultation and confirmation with women over nonirrigation infrastructure in all subprojects 6. 100% of targeted R&U completed by year 7 of the
1. Government statistics/ reporting 2. Development partner statistics/reporting 3. Project M&E activities by the PMU 4. Mirabs and communities through participatory M&E 5. Consultants reports 6. Existence of training materials, etc. 7. Contract awards 8. ADB review missions 9. Reporting by Afghanistan Resident Mission
Assumptions 1. Water users will abide by policies of RBA and agree to entitlements for water allocation. 2. Water modeling activities are technically feasible. 3. Modalities can be found to implement and enforce the groundwater regulatory/ management framework. 4. Community members will be willing to participate in the R&U and provide a 10% contribution. 5. Suitable subproject sites and communities can be found. 6. Security situation allows project implementation. Risks 1. Contracting civil works may be beyond the capacity of the local contractors but not of interest to international contractors. 2. Farmers may be reluctant to participate in improved cropping techniques. 3. Women will be reluctant to participate in project activities 4. Consultants may be of poor quality
v
Design Summary
Performance Targets/Indicators
Data Sources/Reporting
Mechanisms
Assumptions and Risks
6. 45,000 ha of irrigation R&U in the Hari Rud River Basin and 10,000 ha in the Murghab River Basin 7. New irrigation and water resources development projects in the western basins
8. Capacity development program and ongoing technical and institutional support for mirabs 9. Preparation of resettlement plans as needed for subprojects
Component 3 10. Detailed farm survey of the lower Hari Rud River Basin 11. Mirab and farmer capacity building programs for OFWM and enhanced cropping opportunities 12. Menu of income-generating activities for the landless women and with training program and ongoing technical support
Component 4 13. Comprehensive capacity development program for all project stakeholders 14. Effective PMU 15. Functional Irrigation Department in Heart
Project 7. At least 15 water resources development projects implemented by the end of the Project or equivalent amount of additional R&U 8. At least 90% of mirabs in all subprojects involved in capacity development activities
9. Resettlement plans as needed that are fully compliant with ADB guidelines 10. Statistically valid stratified sample for lower Hari Rud River Basin with report and recommendations by year 1.5 of the Project 11. Training materials, trainers, delivery strategies, and M&E in place for OFWM and enhanced cropping opportunities subcomponent activities by year 2.5 of Project 12. Training materials, trainers, delivery strategies, and M&E in place for livelihoods subcomponent activities by year 2.5 of Project 13. Detailed capacity development program with materials and delivery mechanisms in place by year 2 and international training completed by year 5 of the Project.
14. All PMU reporting and financial management activities on schedule and satisfactory to ADB by year 1 of the Project 15. MEW fully staffed and capable of managing project activities by year 6 of the Project
Activities with Milestones Component 1: – IWRM 1.1 Field reconnaissance and development of surface/basin model – by year 3
Inputs 1. ADB will provide (i) inception
vi
Design Summary
Performance Targets/Indicators
Data Sources/Reporting
Mechanisms
Assumptions and Risks
1.2 Field reconnaissance and development groundwater model and irrigation demonstrations – by year 3
1.3 Develop geographic information system and other management information systems – by year 3
1.4 Basin water resource development plan – by year 5 1.5 Form river basin committee and formalize RBA – by years 1 and 7 1.6 Develop process and initial registry for water allocation entitlement system – start in
year 2 and finish by year 6 1.7 Develop demonstration groundwater irrigation facilities – years 3 to 6 1.8 Research and draft groundwater regulatory framework – years 2 to 6
Component 2: Water Resources and Irrigation Development 2.1 Contract and initiate survey contract for Hari Rud schemes – years 1 to 3 2.2 Develop contract and tender for design and technical support – year 1 to 3 2.3 Start community consultation and design work for 3 project preparatory technical assistance subprojects and other Hari Rud schemes – start year 1 to year 5 2.4 Commence contracting and start civil works – years 1 and 2 2.5 Develop technical and management options for improving irrigation system delivery in the western basins 2.6 Start reconnaissance in the Murghab River Basin and finalize investment plan – years 2
and 5 2.7 Finalize investment plan for water resources development subcomponent – start in year 2 and finish in year 5 2.8 Develop core mirab training program – year 1 – deliver training until year 7 2.9 Develop and deliver mirab technical and institutional backstopping services – years 2 to 7 2.10 Complete R&U on 45,000 ha in the Hari Rud River Basin and 10,000 ha in the
Murghab River Basin by year 7 2.11 Complete an additional 7,000 ha of R&U or 10 water resources development projects in the western basins by year 7 2.12 Preparation of resettlement plans as needed.
Component 3: Agriculture and Livelihood Services 3.1 Enumerate detailed farm survey in the lower Hari Rud River Basin and analyze
results – year 1 3.2 Assess technical options for OFWM and develop program delivery modalities – year 2 3.3 Research and develop interventions and delivery modalities for the enhanced
cropping opportunities subcomponent – year 2 3.4 Research and develop interventions and delivery modalities for the income-
generating opportunities for the livelihoods activities – year 2 3.5 Start program delivery for all programs under component 3 – beginning year 3;
refine program activities years 3 to 7
Component 4: Capacity Development and Project Management 4.1 Start recruitment of ministry staff and domestic consultants to support the Project –
immediately after loan negotiations and through year 1 4.2 Develop overall framework and plan for capacity development program -
immediately after loan negotiations and through year 1 4.3 Start domestic training program for ministry staff, nongovernment organizations, and
other training of trainers who will provide capacity development service in components 1, 2, and 3 – year 1
4.4 Screen candidates and start enrollment procedures for international training programs – years 1 to 4, final international training to be completed by year 6
4.5 Deliver capacity development activities through other components: years 2 to 7 4.6 Establish project steering committee, project implementation committee, PMU, and
project office in Kabul – year 1 4.7 Establish project office in Obe – year 1 and possible office in Badghis Province – year 3 4.8 Finalize safeguard procedures and ensure implementation arrangements for
resettlement and environment – year 1 and execute throughout the program
mission, (ii) at least 2 review missions per year for the first 3 years, (iii) midterm review mission by December 2009, (iv) ongoing support from the Afghanistan Resident Mission, (v) $14.5 million in ADF grant financing, and (vi) $60.5 in ADF loan financing. 2. The Government of Afghanistan will provide (i) by year 3 support counterpart staff to be trained through the Project, and (ii) office space and land as may be available for project facilities. 3. Project participants will provide (i) time and support for planning and executing subproject interventions, (ii) a portion of in-kind R&U development costs, and (iii) labor and finances for ongoing system management and O&M. 4. The private sector will provide contracting capacity to execute 55,000 to 65,000 ha of R&U and water resources infrastructure under project tenders. 5. Consulting input is 892 person-months: 468 international and 424 domestic.
a Mirab is the traditional community water manager.
1
I. PROJECT DESCRIPTION
A. Project Area and Location 1. The Western Basins Water Resources Management Project (the Project) will support
infrastructure development, strengthening of institutional frameworks, and capacity development
for water resources management and irrigated agriculture in the western basins of Afghanistan
(Badghis, Ghowr, and Herat provinces), mainly comprising the Hari Rud River Basin, which
includes Herat, and the Murghab River Basin.
B. Objectives and Scope 2. The overall goal of the Project is to improve rural livelihoods in the Project area through
strengthened integrated water resource management (IWRM), improved irrigation service
delivery, enhanced agricultural practices and increased productivity of irrigated agriculture. The
primary objectives of the Project are to (i) improve IWRM and water management at all levels;
(ii) rehabilitate, upgrade and develop irrigation and water resources infrastructure; (iii) support
improved agriculture productivity and rural livelihoods; and (iv) develop capacity and strengthen
institutional frameworks for IWRM and irrigated agriculture.
C. Project Components 3. The Project consists of the following 4 components (Appendix 1 provides a complete
description of each component):
• Component 1 - Integrated Water Resource Management: (i) support IWRM and basin
management through technical activities, which include, but not limited to surface water
investigations, groundwater investigations and establishment of basin management
information systems; (ii) undertake water allocation planning studies, and support
development of basin master plans; and (iii) enhance IWRM institutional and capacity
development. In particular, the Project will support the establishment of the River Basin
Authority (RBA) (due within 6 years of the Effective Date), which shall be responsible for
management of the Government’s water resources, and development of a groundwater
regulatory framework consistent with the Government’s policy (due within 7 years of the
2
Effective Date) to manage sustainable development of basin groundwater and to protect
karez1 and spring water supplies.
• Component 2 – Water Resources and Irrigation Development: (i) support irrigation
rehabilitation and upgrading in the Hari Rud and Murghab river basins; (ii) support water
resources development; and (iii) support mirab development and strengthen mirabs’
capacity for operation and maintenance (O&M). Rehabilitation and upgrading and
development of all subprojects will be fully participatory with mirabs and the community
involved in the identification, design, management, and O&M of the civil works. Given the
number of irrigation schemes requiring rehabilitation and upgrading in the western basins
and the need for flexibility with project implementation, a sector-like approach will be used
for subproject selection based on criteria with an indicative investment plan to be refined
during the Project (Appendix 2).
• Component 3 – Agriculture and Livelihood Support Services: (i) assist in improving on-farm
water management; (ii) enhance cropping opportunities; and (iii) support livelihood
opportunities for women and the landless.
• Component 4 – Capacity Development and Project Management: (i) strengthen capacity of
the Ministry of Energy and Water (MEW), Ministry of Agriculture, Animal Husbandry, and
Food (MAAHF), river basin authority (RBA), and other project participants; and (ii) support
the establishment of a Project Management Unit (PMU).
D. Special Features 4. The Asian Development Fund (ADF) support for the ADB contribution to the Project is a
blend of grant ($14.5 million) and loan ($60.5 million). The use of the grant financing is vital to
the redevelopment of irrigated agriculture and the national economy, and is consistent with
ADB’s country strategy and program in that it supports natural resource management and relies
on building capacity, establishing appropriate policy and institutional frameworks, and
rehabilitating essential infrastructure. The grant will be used to support the agricultural and
livelihood services component, and the mirab development and O&M subcomponent, which
provide critical value addition to development impact and poverty reduction as part of the
1 A karez is an indigenous water supply system that captures subsurface flow by tunneling horizontal shafts into the
side of hills or mountains.
3
Project. The grant funds will be managed with the same oversight as the ADB loan funds, and
separate M&E of grant funded activities will be undertaken.
II. COST ESTIMATES AND FINANCING PLAN
A. Detailed Cost Estimates and Financing Plan 5. The Project is estimated to cost $87.6 million equivalent inclusive of taxes, duties, and
interest during implementation (Table 1). Appendix 3 provides the detailed cost estimates.
Table 1: Cost Estimates
($ million) Item Foreign
Exchange Local
Currency Total Cost Percent
1. Integrated Water Resources Management 5.5 2.4 7.9 10 2. Water Resources and Irrigation Development 17.9 34.8 52.7 68 3. Agriculture and Livelihood Services 2.2 6.3 8.5 11 4. Capacity Building and Project Management 4.2 4.4 8.6 11 Subtotal (Base Costs)a 29.8 47.9 77.7 100 1. Physical Contingenciesb 1.0 0.9 1.9 2 2. Price Contingenciesc 1.6 4.5 6.1 8 3. Interest during Implementationd 1.9 0.0 1.9 3 Total 34.3 53.3 87.6 113
a Late 2005 prices including taxes and duties. b Physical contingencies: 0% on civil works since subprojects will be executed to the limit of project funds, and
10% on all other expenditure accounts. c Price contingencies: 2.8 falling to 1.9% on foreign exchange and 5.0% on local currency. d Interest during implementation is based on the 1% interest. Source: Report and Recommendation of the President to the Board of Directors (RRP) on a Proposed Loan and Asian Development Fund Grant for the Western Basins Water Resources Management Project.
6. ADB has approved on 21 December 2005 a Loan of SDR42.446 million and a Grant of
$14.5 million from ADB’s Special Funds resources to help finance the Project. The loan will
have a 40-year term, including a grace period of 10 years, and an interest charge of 1% per
annum. The total amount of the interest charge during the grace period will be capitalized and
charged to the loan account. The ADB loan and grant will finance $34.3 million of the foreign
exchange costs and $40.7 million of the local currency costs (Table 2). The community will fund
$7.8 million equivalent of the local costs through in-kind labor. Under ADB’s special lending terms,
the Government is exempt from directly contributing to the project financing exclusive of local
taxes and duties, which will be paid by the Government.2 The Government will bear the foreign
exchange risk. Details of the financing arrangement for the Project are also in Appendix 3.
2 Cofinancing is currently being pursued. Once this is confirmed, ADB’s Special Funds loan resources will be
canceled and an equal amount substituted with cofinancing funds. The Government has been consulted and confirmed this arrangement.
4
Table 2: Financing Plan ($ million)
Source
Foreign Exchange
Local Currency
Total Cost
Percent
Asian Development Bank Loan 29.7 30.8 60.5 69 Asian Development Bank Grant 4.6 9.9 14.5 17 Project Participantsa 0.0 7.8 7.8 9 Governmentb 0.0 4.8 4.8 5 Total 34.3 53.3 87.6 100 a Contribution of communities for labor. b Local taxes and duties. Source: RRP on the Proposed Loan and Asian Development Fund Grant for the Western Basins Water Resources Management Project
B. Use and Allocation of Loan and Grant Proceeds 7. The Government shall apply the Loan and Grant to the financing of eligible expenditures
on the Project in accordance with the provisions of the Financing Agreement for the Project
dated 9 March 2006. The goods and services to be financed, the Loan and Grant financing
percentages for such goods and services, and the respective allocation of amounts of the Loan
and Grant among different categories are provided in Tables 3A and 3B, which may be
amended from time to time by agreement between the Government and ADB in accordance
with paragraph 6, Schedule 3A, and paragraph 4, Schedule 3B of the Financing Agreement.
The Loan and Grant proceeds must not be used to finance local taxes.
8. All goods and services to be financed out of the proceeds of the Loan and Grant must be
procured in accordance with the provisions of Schedules 4 and 5 of the Financing Agreement,
and the relevant ADB guidelines for the procurement of goods and use of consulting services.
ADB may refuse to finance a contract where goods or services have not been procured under
procedures substantially in accordance with those agreed between the Government and ADB,
or where the terms and conditions of the contract are not satisfactory to ADB.
9. The Government shall cause all goods and services financed out of the proceeds of the
Loan and Grant to be used exclusively in the carrying out of the Project.
10. Loan and Grant account closing date. The closing date for withdrawals from the Loan
and Grant Accounts shall be 30 September 2013, or such other date as may from time to time
be agreed between the Government and ADB.
5
Table 3A
Allocation and Withdrawal of Loan Proceeds (SDR million)
Category
Amount Allocated ADB
Financing Number Item Category Subcategory Basis for Withdrawal
1
Civil Works
24.205
1A Rehabilitation & Upgrade 23.433 100% of total expenses* 1B Project Offices 0.772 100% of total expenses* 2 Vehicle & Machinery 2.035 81% of total expenses* 3 Equipment 0.912 59% of total expenses*
3A Project Equipment 0.912 100% of total expenses* 4 Training/Fellowships 2.666 84% of total expenses* 5 Consulting Services 6.244 67% of total expenses* 6 Project Implementation 4.280 70% of total expenses* 7 Interest Charge 1.333 100% of amounts due 8 Unallocated 0.771
Total
42.446
* Exclusive of local taxes. Source: Financing Agreement dated 9 March 2006.
Table 3B Allocation and Withdrawal of Grant Proceeds
($ million)
Category Amount Allocated
ADB Financing
Number Item Category Subcategory Percentage of Total*
1 Vehicles & Machinery
0.700
19%
2 Equipment 0.900 91% 2A Mirab Development 0.900 100% 3 Training/Fellowships 0.700 16% 4 Materials 4.600 100% 5 Consulting Services 4.300 33% 6 Project Implementation 2.600 30% 7 Unallocated 0.700
Total
14.500
* Exclusive of local taxes. Source: Financing Agreement dated 9 March 2006.
6
11. Reallocation of Loan and Grant Proceeds. Notwithstanding the allocation of Loan and
Grant proceeds and the withdrawal percentages set forth in these Tables and subject to
paragraph 5 of Schedules 3A and 3B of the Financing Agreement:
• if the amount of the Loan and/or Grant allocated to any Category appear to be
insufficient to finance all agreed expenditures in that Category, ADB may, by notice to
the Government, (i) reallocate to such Category, to the extent required to meet the
estimated shortfall, amounts of the Loan and/or Grant which have been allocated to
another Category but, in the opinion of ADB, are not needed to meet other expenditures,
and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the
withdrawal percentage applicable to such expenditures in order that further withdrawals
under such Category may continue until all expenditures thereunder shall have been
made; and
• if the amount of the Loan and/or then allocated to any Category appears to exceed all
agreed expenditures in that Category, ADB may, by notice to the Government, reallocate
such excess amount to any other Category.
III. IMPLEMENTATION ARRANGEMENTS
A. Executing and Implementing Agencies 12. The Executing Agency for the Project is the Ministry of Finance (MOF). The Project
Implementing Agencies are:
• MEW (Irrigation Department) – shall be responsible for all water resources management
activities and irrigation rehabilitation and upgrading;
• MAAHF – shall be involved in the delivery of the agricultural support services, and
• Ministry of Mines and Industry (MMI) – in collaboration with MEW, shall be responsible
for carrying out groundwater activities.
B. Project Management Organization 13. The MEW and MAAHF, with assistance from ADB and the project consultants, will
identify and depute professional and technical staff to establish and sustain the Irrigation
Department and the RBA after project completion. If MEW and MAAHF cannot identify and
depute the above-mentioned staff, then within 3 years of the Effective Date, MEW and
MAAHF shall sanction the posts and engage these staff on as permanent employees. The
Government shall ensure than staff hired for the Project and who receive international training
7
through the Project will remain throughout the Project period and remain with MEW and MAAHF
for an adequate period of time to ensure the sustainability of the Project benefits.
14. Project Steering Committee (PSC). The Government shall establish a PSC in Kabul,
co-chaired by the Minister or Deputy Minister of MEW and MOF, and comprised of
representatives from the Ministry of Foreign Affairs (MFA), MAAHF, MMI, Ministry of Rural
Reconstruction and Development (MRRD) and other relevant ministries at deputy-minister or
equivalent level. The PSC shall meet at lease once a year or more frequently at the request of
the Chair to provide policy guidance and review project performance. 15. PMU and Project Offices. MEW will establish a PMU within 3 months of effectiveness
in Herat with representation from MAAHF, MEW, MMI, MOF, the Governor of Heart’s Office, and
the project consultants. The PMU will be housed within MEW in Herat, and shall be headed by a
Project Director, appointed by MEW. The Project Director shall report to the Deputy Minister of
MEW (Head of Irrigation) and shall be responsible for overall project activities. Unless otherwise
agreed between PSC and ADB, the PMU will have about 30 professional staff, 43 technical staff,
and 54 support staff. The PMU shall be responsible for day-to-day project management, including,
but not limited to:
• Consultants/NGO recruitment
• Procurement
• Compliance of subprojects with ADB’s safeguard policies
• Financial management
• Monitoring and evaluation
• Submission of quarterly progress reports and annual reports through MOF
• Provision of overall inter-agency coordination for project activities
16. The PMU will establish within 1 year of the Effective Date, (i) a project office in Obe,
Herat Province, to support project activities in the upper Hari Rud River Basin, and (ii) a project
office in Kabul to coordinate activities with MOF and MEW until MEW has sufficient capacity to
manage activities under the Project. Within 3 months of opening of the project offices in Obe
and Kabul, MEW shall appoint deputy project directors for each of the project offices respectively.
17. Project Implementation Committee (PIC). The Project Director shall form a PIC
within 3 months of the Effective Date. The PIC shall be chaired by the representative of the
Governor’s Office of Heart, and shall comprise high-ranking technical officers from MEW,
MAAHF, MMI, MOF, MRRD, Ministry of Women’s Affairs (MWA), provincial authorities
8
(including representatives of the governors’ offices of Bhadghis and Ghowr once subprojects
are located there), and development partners. The PIC shall coordinate project implementation
and technical issues. The PIC will have the Project Director as its secretary and will meet at
least twice a month or more frequently at the request of the secretariat or chair. The PIC will
have overall responsibility for resettlement, while the PMU will manage the day-to-day activities
and development and implementation of any resettlement plans. The PIC shall be responsible
for selection of subprojects, while evaluation of subprojects shall be done by PMU.
18. Management Cell. MEW with assistance from PMU shall, within 1 year of the Effective Date¸ establish a management cell in Heart, supported by a Basin Water Committee
(BWC) comprising representatives from MEW, MOF, MMI, MAAHF, MRRD, provincial and
municipal authorities of the Government, mirabs and other stakeholders to plan and execute
technical functions associated with Component 1. MEW staff shall be trained for technical and
planning functions to serve as a secretariat to BWC and RBA.
19. Subproject Selection and Approval. Subprojects shall be selected by the PIC,
evaluated by the PMU, and approved by MEW in Kabul. Selection of the first 5 subprojects shall
be approved by ADB, and if found acceptable, further subproject selection will not require ADB
approval. However, if ADB determines that a subproject did not meet the agreed selection
criteria, the Government shall be required to refund to ADB any payment made from the Loan or
the Grant to finance such subproject and to provide the financing from its own or other
resources.
IV. IMPLEMENTATION SCHEDULE
20. The Project will be implemented over 7 years, from 2006 to 2013 (Appendix 4). The first
year will be largely devoted to start-up activities, including staffing the PMU, procurement of
goods and services (consultants, office facilities, office equipment, etc), and various other
preparatory tasks. Construction of subprojects prepared under the PPTA for the Project3 will be
initiated in year 1, while other subprojects will be prepared in years 1 to 3 with construction
commencing immediately thereafter.
V. COST ESTIMATES AND FINANCING PLAN DURING IMPLEMENTATION
21. MEW and the PMU, with assistance from project consultants, will update the project cost
estimates and financing plan annually, or more often if necessary, based on actual contract
3 The subprojects include rehabilitation of the Jui Nau Canal, and Sri Pul and Yahia Abad systems.
9
awards and project implementation (Appendix 5). The updated tables will be attached to the
quarterly and annual progress reports that would be submitted to ADB.
22. MEW and the PMU, with assistance from project consultants, will also prepare annual
forecasts of contract awards and disbursements on a quarterly basis for one year ahead, in the
format shown in Appendix 6. Such forecasts will be submitted to ADB no later than 15 January
each year of project implementation.
VI. CONSULTANT RECRUITMENT
23. The Project will require an estimated 892 person-months of consulting services: 468
international and 424 domestic. The expertise required and terms of reference are in Appendix
7. Consultants will be selected in accordance with ADB’s Guidelines on the Use of Consultants.
The selection and engagement of the consultants shall be made without any restriction against,
or preference for, any particular consultants or any particular class of consultants. The
consultants shall be selected and engaged as a firm by the Government using quality-and-cost-
based selection (QCBS) method as follows:
• Invitation for technical and financial proposals. The invitation to submit technical and
financial proposals, or request for proposals (RFP), and all related documents shall be
approved by ADB before they are issued. For this purpose, three copies of the draft RFP,
the names of consultants to be shortlisted, the proposed criteria for evaluation of both
proposals, a draft consultancy contract, and other related documents shall be submitted to
ADB.4 A period of at least 45 days shall be allowed for submission of both proposals for full
technical proposals, and at least 35 days for simplified technical proposals. A copy of the
final RFP as issued together with all related documents, shall be furnished to ADB for
information promptly after issuance. The validity period for the technical and financial
proposals as provided in the RFP shall usually not exceed 3 months from the date specified
for submission of the technical and financial proposals. The approval of the ADB shall be
obtained for any request to extend such validity period. Except as ADB may otherwise
agree, the validity period, including any extensions, shall not exceed a maximum total period
of 6 months. If the contract is not signed within the validity period in accordance with the
4 ADB’s Standard Request for Proposals (SRFP) must be used for engaging ADB-financed consulting services. The
SRFP, including contract formats, can be downloaded from the ADB’s website (www.adb.org/Consulting/documents.asp). The website also contains a checklist of documents that need to be submitted to ADB for approval.
10
ADB’s Guidelines on the Use of Consultants, the selection shall be invalid and the selection
and engagement process as provided in this paragraph shall be followed again.
• Evaluation and scoring of technical proposals. Immediately after the technical proposals
have been evaluated and scored, approval of ADB shall be obtained to the evaluation and
scoring of the technical proposals. For this purpose, ADB shall be furnished with 3 copies of
the technical proposals.
• Public opening of financial proposals. The financial proposals of the firms whose
technical proposals meet the minimum qualifying technical score shall be opened publicly
after adequate notice is given to such firms or their representatives to attend the opening of
the financial proposals.
• Evaluation and scoring of financial proposals and ranking of technical and financial proposals. After the financial proposals have been evaluated and scored, the ranking of the
technical and financial proposals shall be made. Before negotiations are started with the
first-ranked consultants, approval of ADB shall be obtained to the evaluation and scoring of
the financial proposals and the ranking of the technical and financial proposals. For this
purpose, ADB shall be provided with three copies of (i) the evaluation and scoring of the
financial proposals, and (ii) the ranking of the technical and financial proposals.
• Execution of contract. After the conclusion of negotiations but before the signing of the
contract, ADB shall be furnished with the contract as negotiated for approval. Promptly after
the contract is signed, ADB shall be furnished with three copies of the signed contract. If
any substantial amendment of the contract is proposed after its execution, the proposed
changes shall be submitted to ADB for prior approval.
24. Any individual consultants that would be selected and engaged by the Government shall
follow the following procedures:
• A list of the candidates together with their qualifications and their ranking and a draft
contract shall be furnished to ADB for approval before the selection of consultants.
• Promptly after the contract is negotiated, ADB shall be furnished with a copy of the draft
negotiated contract for approval. As soon as the contract is signed, ADB shall be furnished
with three copies of the signed contract.
• If any substantial amendment of the contract is proposed after its execution, the proposed
changes shall be submitted to ADB for prior approval.
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25. Non-governmental organizations (NGOs) may be engaged to support activities related to
Component 3 and mirab development, O&M subcomponent of Component 2, and other
activities necessary for implementation of the Project. Selection and engagement of prequalified
NGOs may be done in accordance with procedures acceptable to ADB. If there is a limited
number of NGOs, direct negotiation may be used in selection and engagement of NGOs,
subject to prior approval of ADB.
VII. PROCUREMENT
26. To minimize delays and problems in procurement, but before commencing any
procurement activities under the Project, MEW/PMU should provide to ADB for approval a list or
lists of the goods to be procured, the proposed grouping of these goods (consideration should
be given to item compatibility, time of need, supplier capability, likelihood of wider competition,
and capability of MEW/PMU to handle a number of contracts), and the proposed number and
scope of civil works contracts to be awarded. In preparing such list(s), MEW/PMU may use as
basis the indicative contract packages in Appendix 8.
27. ADB’s procurement procedures (as detailed in the "Guidelines for Procurement under
Asian Development Bank Loans" dated November 2004 [Guidelines for Procurement] as
amended from time to time) must be followed in respect of any contract in which the proceeds of
the Loan and Grant will be used to finance either the whole or part of the contract. Procurement
shall be made without any restriction against, or preference for, any particular supplier or
contractor or any particular class of suppliers or contractors, except when domestic preference
is applied.
28. International Competitive Bidding (ICB). Each civil works contract estimated to cost
the equivalent of more than $1,000,000 and each supply contract for equipment or materials
estimated to cost the equivalent of more than $500,000 shall be awarded on the basis of
international competitive bidding as described in Chapter II of the Guidelines for Procurement.
In this context:
• There shall be submitted to ADB, as soon as possible, and in any event not later than 90
days before the issuance of the first invitation to bid for the Project, a General Procurement
Notice (which ADB will arrange to publish separately) in such form and detail and containing
such information as ADB shall reasonably request.
• Procurement actions shall be subject to review by ADB in accordance with the procedures
set forth in Chapter IV of the Guidelines for Procurement. Each draft invitation to bid, to be
12
submitted to ADB for approval, shall reach ADB at least 21 days before it is issued and shall
contain such information as ADB shall reasonably request to enable ADB to arrange for the
separate publication of such invitation (i.e. the draft bidding documents shall show all
important conditions of bidding including the proposed bidding period and the proposed
delivery period.
• As soon as the invitation to bid has been advertised, ADB shall be furnished with a report on
the advertising procedures followed. Such report shall show, inter alia, the name of the
newspaper in which the invitation was advertised and the date of such advertising. In
addition, the report shall list to whom the bidding documents were transmitted; how they
were transmitted (locally, by hand or surface mail, and abroad, by air mail); and the date of
such transmittal. A copy of the invitation to bid as issued and a copy of the newspaper
• The advertisement as published shall also be enclosed with the report.
• As soon as the bids received have been evaluated, ADB’s approval shall be obtained to the
proposal for award of contract before a contract is awarded or a letter of intent is issued. For
this purpose, ADB shall, promptly after the bid evaluation but at least 30 days prior to
expiration of bid validity, be furnished with three copies of (i) an account of the public
opening of the bids; (ii) a summary and evaluation of the bids; (iii) the proposal for award
(together with the consultants' recommendations, where applicable); (iv) a draft contract or a
draft letter of acceptance if such draft differs substantially from the draft previously submitted
to, and approved by, ADB; and (v) an appropriate certificate of the eligibility of the proposed
contract where required by ADB. In case the bidding procedure allows for more than one
stage, the ADB’s approval of the results of the evaluation at each stage shall be obtained
before the results are communicated to the bidders.
• Promptly after each contract is awarded, ADB shall be furnished with three copies of the
contract as executed. If the final contract proposed to be executed differs substantially from
the draft contract previously approved by ADB, or if any substantial amendment of the
contract is proposed after its execution, the proposed changes shall be submitted to ADB for
prior approval.
29 ADB’s standard bidding documents (SBDs) for ICB, which can be downloaded from the
ADB website (www.adb.org/Procurement/prequalification-bid-documents.asp) must be used.
Modifying or departing from the SBDs must be minimal and consistent with the Guidelines for
Procurement; subject to ADB approval; and introduced only through bid data sheets, and the
special conditions of contract and conditions of particular application.
13
30. International Shopping. Each supply contract for equipment or materials estimated to
cost the equivalent of $300,000 but not more than $500,000 (other than minor items) shall be
awarded on the basis of international shopping as described in Chapter III of the Guidelines for
Procurement. In this context:
• Each draft invitation to bid and related bid document shall be submitted to ADB for approval
before they are issued.
• Notwithstanding paragraph 3.03(b) of the Guidelines for Procurement, any award of contract
shall be subject to prior ADB approval.
31. Domestic Preference. In comparing bids under ICB, a margin of preference may be
provided, at the option of the Government and in accordance with the provisions of the
Attachments to Schedule 4 of the Financing Agreement, for:
• goods manufactured in Afghanistan, provided that the bidder offering such goods shall have
established to the satisfaction of the Government and ADB that the domestic value added
equals at least 20 percent of the ex-factory bid price of such goods; and
• civil works to be carried out by eligible domestic contractors, as defined by ADB.
32. Local Competitive Bidding (LCB). Each civil works contract estimated to cost the
equivalent of $1,000,000 or less shall be awarded on the basis of LCB among prequalified
contractors in accordance with the Government’s standard procurement procedures and
acceptable to ADB. Civil works estimated to cost the equivalent of less than $500,000 may be
implemented by communities through an in-kind contribution to subprojects to be coordinated
through PMU.
33. For the first 3 contracts to be awarded under LCB, the selection and engagement of
contractors shall be subject to the approval of ADB. As soon as the bids received have been
evaluated, the proposal for award of contract shall be submitted to ADB for approval. For this
purpose, ADB shall be furnished with three copies of (i) an account of the public opening of
bids; (ii) a summary and evaluation of the bids; (iii) the proposal for award; and (iv) a draft
contract or a draft letter of acceptance. Promptly after each contract is awarded, ADB shall be
furnished with three copies of the contract as executed.
34. For subsequent contracts, bid evaluation and award of contracts shall be subject to post
review by ADB. However, if the award or terms of any such contract are not subsequently
approved by ADB, the Government will be required to refund to ADB any payment made from
14
the Loan or the Grant to finance such contract and to provide the financing from its own or other
resources.
35. Direct Purchase. Civil works contract estimated to cost the equivalent of $100,000 or
less, and certain minor or off-the-shelf goods and materials estimated to cost, in the aggregate,
the equivalent of $100,000 or less, may be procured through direct purchase in accordance with
procedures acceptable to ADB. After award, three copies of each contract for such items shall
be furnished to ADB.
36. Rehabilitation Works. Rehabilitation works involving numerous structures or activities
on subprojects may be bundled into contract packages for procurement either through ICB or
LCB.
VIII. DISBURSEMENT PROCEDURES
37. Loan and Grant proceeds will be disbursed in accordance with the ADB’s Loan
Disbursement Handbook dated January 2001 (as amended from time to time), and Schedules
3A and 3B of the Financing Agreement. To avoid delays in disbursement, and as soon as the
Financing Agreement becomes effective, the Government should submit to ADB sufficient
evidence of the authority of the person(s) who will sign withdrawal applications on behalf of the
Government, together with the authenticated specimen signature of each authorized person
(any subsequent change in the list of authorized representatives must be reported immediately
and authenticated specimen signatures of new representatives must also be provided to ADB).
For all withdrawals, ADB must receive a withdrawal application in the prescribed form, and
signed by the Government’s duly authorized representative(s). A withdrawal application is a
written request from the Government to ADB to pay funds against the Loan and Grant Accounts,
and consists of (i) the application itself, in letter form, in 2 copies (Appendixes 3, 5, and 19 of the
Loan Disbursement Handbook provide sample formats), (ii) summary sheet(s) for each category
claimed (Appendixes 4 and 6 of the Loan Disbursement Handbook provide sample formats),
and (iii) supporting documents, if required. The application must reach ADB before the specified
Loan and Grant closing date.
38. Imprest Account. Except as ADB may otherwise agree, the Government shall establish
immediately after the Effective Date, an imprest account at Da Afghanistan Bank. The imprest
account shall be established, managed, replenished and liquidated in accordance with the Loan
Disbursement Handbook. The initial amount to be deposited into the imprest account shall not
15
exceed the equivalent of six months expenditures or 10 percent of the Loan and the Grant
amount, whichever is lower. For this purpose, a signed withdrawal application for imprest
account (Appendix 19 of the Loan Disbursement Handbook) must be submitted to ADB together
with a statement of the estimated ADB share of project expenditures (Appendix 20 of the Loan
Disbursement Handbook). As eligible expenditures are incurred and paid from the imprest
account, the Government requests liquidation/replenishment of the account by submitting a
withdrawal application duly supported by documents, as required, and the corresponding bank
statement and reconciliation statement (Appendix 21 of the Loan Disbursement Handbook).
Withdrawal applications must be prepared in the currency of the account.
39. Advances to the imprest account are to be gradually reduced within 1 year before the
Loan and Grant closing date, or when the undisbursed balance of the Loan and Grant, including
outstanding commitments, is equal to twice the amount of advance, whichever comes first. This
is to ensure than sufficient time is provided for the Government to obtain supporting
documentation for clearing the outstanding advances before the Loan and Grant accounts are
closed. The form to be used is shown in Appendix 22 of the Loan Disbursement Handbook. The
Government must promptly refund to ADB, in the currency of the account, any balance of the
advance not liquidated at the time of Loan and Grant closing.
40. The statement of expenditures (SOE) procedure may be used for reimbursement of
eligible expenditures and to liquidate advances provided into the imprest account, in accordance
with the Loan Disbursement Handbook. Any individual payment to be reimbursed or liquidated
under the SOE procedure shall not exceed the equivalent of $50,000. Paragraphs 9.28 to 9.23
of the Loan Disbursement Handbook describe the SOE procedure in detail.
41. Other Disbursement Procedures. The following disbursement procedures may also be
used under the Project:
• Direct payment procedure. ADB, at the request of the Government, pays a designated
beneficiary directly (Chapter 7 of the Loan Disbursement Handbook provides details);
• Commitment procedure. ADB, at the Government’s request, provides an irrevocable
undertaking to reimburse a commercial bank for payments made or to be made to a supplier
against a letter of credit financed from the Loan and Grant accounts (Chapter 8 of the Loan
Disbursement Handbook provides details); and
• Reimbursement procedure. ADB pays from the Loan and Grant accounts to the
Government’s account or, in some cases, to the project account, for eligible expenditures
16
which have been incurred and paid for by the Project out of its budget allocation or its own
resources (Chapter 9 of the Loan Disbursement Handbook provides details).
42. Withrawal application forms and other loan financial information can also be downloaded
from the ADB’s Loan Financial Information System (LFIS) at http://lfis.adb.org. MEW/PMU may
request access to the LFIS from this site, or by accomplishing and sending the request form in
Appendix 9.
IX. PROJECT MONITORING AND EVALUATION
43. MEW and the PMU will establish performance monitoring and evaluation (M&E) systems
and procedures consistent with ADB’s Project Performance Management System within 4 months of the Effective Date. The M&E system to be developed for the Project should use as
basis the quantified and time-bound targets, indicators, risks, and assumptions contained in the
Project’s design and monitoring framework (page iii) to monitor and evaluate the Project’s
performance. Progress toward the performance targets and assessment of risks and
assumptions are tracked and should be inputted in the Project’s progress reports that would be
submitted to MOF and ADB. These reports, combined with findings during regular field review
missions, will then form the basic inputs for the ADB’s Project Performance Report (Appendix
10).5 During implementation, the design and monitoring framework should be reviewed and,
when needed, adjusted to reflect changing circumstances and environments so that the
intended outcome can be achieved.
44. For subprojects, baseline information will be collected as part of the subproject feasibility
assessment process with assistance from the project consultants. Thereafter, surveys will be
conducted regularly. The scope of the survey, quantity and quality of data, and frequency of
collection will be guided by project management needs for progressive feedback on
implementation status and early warning on situations that might jeopardize development
objectives. Subproject monitoring will be conducted by the PMU, MEW, mirabs, and others as
needed, and will be reviewed closely by ADB.
45. During the initial 3 years of the Project, ADB and the Government will carry out at least semi-
annual reviews to (i) determine if implementation arrangements are in place and appropriate, (ii)
assess progress in capacity development, (iii) review subproject selection and implementation,
(iv) ensure compliance with ADB safeguard policies, and (v) assess any unforeseen impacts.
17
ADB and the Government will undertake a comprehensive mid-term review (MTR) by December
2009 to identify problems in implementation arrangements and define needed changes to
achieve the Project objectives. The Government shall ensure that 2 months prior to MTR, PMU
submits a detailed progress report on Project implementation to ADB.
X. REPORTING REQUIREMENTS
46. MEW and PMU shall prepare monthly financial statements and quarterly progress
reports on (i) physical and financial progress of activities against the targets, (ii) progress on the
institutional and capacity aspects, (iii) issues affecting project implementation and their
corrective measures, and (iv) other agreed upon monitoring parameters. A pro forma of the
project progress report is in Appendix 11. MEW and PMU will prepare a comprehensive annual
report and submit all reports to ADB through the MOF not later than 2 months after the reporting
period. Within 3 months of physical completion of the Project, the Beneficiary will submit a
comprehensive project completion report in ADB’s standard format (Appendix 12) with
additional details as may be requested by ADB.
XI. AUDITING REQUIREMENTS
47. MOF, MEW and PMU shall (i) maintain separate accounts for the Project, including
separate accounts for the Loan and the Grant; (ii) have such accounts and related financial
statements audited annually, in accordance with appropriate auditing standards consistently
applied, by independent auditors whose qualifications, experience and terms of reference are
acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6
months after the end of each related fiscal year, the unaudited project accounts and financial
statements, certified copies of such audited accounts and financial statements and the report of
the auditors relating thereto (including the auditors' opinion on the use of the Loan proceeds and
the Grant proceeds and compliance with the financial covenants of the Financing Agreement as
well as on the use of the procedures for imprest account/statement of expenditures), all in the
English language; and (iv) furnish to ADB such other information concerning such accounts and
financial statements and the audit thereof as ADB shall from time to time reasonably request.
XII. MAJOR LOAN AND GRANT COVENANTS
48. The loan and grant covenants, which have been agreed between the Government and
ADB, to be complied with against the dates shown where applicable, is in Appendix 13.
5 The PPR is ADB’s tool for monitoring implementation progress and assessing the likelihood that projects will
18
XIII. KEY PERSONS INVOLVED IN THE PROJECT
49. The key persons of the Government, (cofinancier forthcoming), and ADB who are
responsible for the implementation/administration of the Project are listed in Appendix 14.
Update this listing promptly when changes occur.
XIV. ANTICORRUPTION
50. ADB defines corruption as the “abuse of public or private office for personal gain.” ADB
will systematically identify, in consultation with its member countries opportunities for reducing
corruption as part of its broader emphasis upon promoting good governance and sound
development management. The institutional arrangements and reporting mechanisms referred
to in this PAM are put in place to enable monitoring and accounting of the use of ADB
resources. The ADB’s Anticorruption Policy sets the guidelines and procedures in addressing
corrupt practices. Anyone coming across evidence of corruption associated with the Project
must contact the ADB’s Office of the Auditor General (which will investigate such allegations) at
the following address:
Anticorruption Unit Office of the Auditor General Asian Development Bank 6 ADB Avenue, Mandaluyong City 0401 Metro Manila, Philippines Telephone: (632) 632 5004 Facsimile: (632) 632 2152 Email: [email protected]
XV. OTHER MATTERS 51. ADB documents and publications that are relevant to the implementation and
administration of this Project are listed in Appendix 15.
deliver their intended outputs and achieve their desired outcome.
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APPENDIXES
1 Project Components 2 Subproject Selection Criteria 3 Cost Estimates and Financing Plan 4 Implementation Schedule 5 Detailed Costs and Financing Arrangement During Implementation 6 Worksheet for Quarterly & Yearly Contract Awards/Commitment & Disbursement
Projections 7 Consulting Services Requirements 8 Indicative Contract Packages 9 Form for Request for LFIS Web Access
10 Project Performance Report 11 Pro Forma of the EA’s Project Progress Report 12 Suggested Topics for Project Completion Report 13 Major Covenants 14 List of Key Persons Involved in the Project 15 List of Documents Relevant to Project Administration